RBSI wins appeal in Marrache lawsuit, overturning earlier judgement

- Supreme Court judge’s finding against bank employee was ‘unjustified and wrong’

The Royal Bank of Scotland International [RBSI] was cleared yesterday of any liability in the loss of money defrauded by brothers Benjamin, Isaac and Solomon Marrache from an Irish client of their law firm Marrache & Co prior to its collapse.

In upholding an appeal filed by RBSI and overturning an earlier judgement against the bank, the Court of Appeal ruled that former Supreme Court judge Adrian Jack had been wrong to suggest bank employee Howard Shaw “dishonestly assisted” the Marraches to defraud their client.

Last year Mr Justice Jack concluded that Mr Shaw, and by extension RBSI, had turned a blind eye to the Marrache brothers’ misuse of client funds held by the bank.

But in a 114-page judgement yesterday, the Court of Appeal found there was no evidence to support Mr Justice Jack’s conclusion in respect of Mr Shaw, which was “unjustified and wrong.”

“I consider that this court should formally record its finding that [Mr Justice Jack’s] findings of dishonesty against Mr Shaw were unjustified and should not have been made,” said Court of Appeal judge Sir Colin Rimer in a 114-page judgement agreed by fellow judges Dame Janet Smith and Sir John Goldring.

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