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Primeo v HSBC: Madoff feeder fund claim dismissed by Cayman Court

Toby Brown reports on the Grand Court’s decision in Primeo Fund (in Official Liquidation) v Bank of Bermuda (Cayman) Ltd and HSBC Securities Services (Luxembourg) SA in which Tom Smith QC, Richard Fisher, William Willson and Robert Amey also appeared.

On 23 August 2017 Mr Justice Andrew Jones QC of the Cayman Islands Grand Court delivered his judgment dismissing the claim brought by Primeo Fund against two HSBC entities, Bank of Bermuda (Cayman) Ltd (“BBCL”) and HSBC Securities Services (Luxembourg) SA (“HSSL”). Primeo was a Cayman Islands fund that invested with Bernard L Madoff Investment Securities LLC (“BLMIS”), whilst BBCL and HSSL acted as Primeo’s administrator and custodian. As explained below, whilst the Judge found that contractual duties had been breached, he found in favour of the Defendants on strict liability, causation, limitation, reflective loss, and contributory negligence (in relation to BBCL).