HOTTER ON METALS: LME must win appeal, then win hearts and minds

If the recent statement by the UK Court of Appeal is anything to go by, it looks like the London Metal Exchange is set to win its defence against a suit on warehousing brought by UC Rusal.

According to Lord Justice Jackson, a prior ruling against the LME places “onerous” obligations on public bodies conducting a consultation on complex issues in a politically sensitive area.  The judge said the exchange was right to have assessed the warehousing rules situation thoroughly before offering the market a focused analysis of what it deemed to be in its best interests. As two recent and very different UK court decisions on the case show, interpretation of the law is very subjective and the ultimate outcome of the case cannot be predicted. But the LME will at least get the opportunity to put its case before the courts again, this time with the aim of winning its appeal of the original decision in Rusal’s favour and getting the suit thrown out entirely. It is expediting that process, with the goal of accelerating a final decision by...

Published

Andrea Hotter

May 20, 2014

15:45 GMT

New York