Shurbanova v FXCM: Outer Temple Chambers successfully defends good faith claim

HHJ Waksman QC (sitting as a Judge of the High Court) handed down judgment this morning in Shurbanova v Forex Capital Markets Limited. FXCM had exercised a contractual right under its Terms of Business to revoke profitable Gold and USD CFD trades placed on the Claimant’s trading account in an “abusive” manner.

The Judge comprehensively dismissed a breach of contract claim. In so doing, he held that FXCM’s ToB gave it a bare contractual right to revoke abusive trades and held that the relevant term was not subject to an implied duty of good faith (the ‘Braganza Duty’). The Judge also accepted FXCM’s case that the Claimant was a “cipher” for her husband or son, who had previously been prohibited by FXCM from trading CFDs on account of abusive trading.

The Judge went on to affirm that, if necessary, he would have held that the Defendant could seek damages for misrepresentation and breach of contract claim.

The Judge also ordered the Claimant to pay the majority of FXCM’s costs on an indemnity basis, and refused the Claimant’s application for costs sanctions and permission to appeal.

The judgment can be found here.

Farhaz Khan and Chloe Bell acted for FXCM instructed by Dorothy Murray and Llewellyn Spink of KWM Europe.

News 22 Aug, 2017