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Judgment · jid 4157 · pdb #1785

Primeo Fund (in official liquidation) v Bank of Bermuda (Cayman) Ltd and HSBC Securities Services (Luxembourg) SA - Judgment

Civ App 0021/2017 · 2019-06-13

Breach of contract and negligence by custodian (R2) and administrator (R1) in relation to Primeo Fund’s investments with Bernard L. Madoff Investment Securities LLC (BLMIS); Interpretation and application of Clause 16(B) of the 1996 Custodian Agreement and Clause 9.2 of the 1996 Administration Agreement; Strict liability for acts of sub-custodians; Gross negligence in NAV calculation; Estoppel by representation and convention; Reflective loss doctrine barring shareholder claims; Limitation periods under Cayman Islands law and application of Section 37 (fraud and concealment); Contributory negligence and its impact on damages; Loss of chance doctrine in causation analysis; Use of hindsight in assessing actual loss; Application of English and Cayman Islands case law including Nykredit, Allied Maples, Solloway v McLaughlin, and Johnson v Gore Wood.

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