The Rusal-LME judgment in detail

The London Metal Exchange’s consultation on changes to its warehousing policy was “so unfair as to be unlawful” and its decision to implement the linked load-in load-out rate for warehouses has been quashed, Mr Justice Phillips said in his judgment on Rusal’s claims against the exchange.

Importantly, he found, following the hearings in February, that the consultation should have included reference to the possibility of banning or capping rent in queues.
Rusal had claimed that the consultation on the proposed linked load-in load-out rates for LME-listed warehouses – referred to as "the Charles solution" in reference to Charles Li – was unfair, that the new policy should be removed and that the LME should be made to carry out a new consultation. 
It also claimed that its human rights would be breached under the European Court of Human Rights by the implementation of the new rules.
Mr Justice Phillips said in his 22-page judgment that “the LME’s consultation was one where, in the particular…context in which it arose, fairness demanded that the consultation should encompass what the LME in due course recognised to be ‘the most practical suggested alternative to the Proposal’”.

This means the consultation...

Published

Claire Hack

March 27, 2014

14:30 GMT

London