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Tuesday, June 28, 2022 - SocGen blames Clifford Chance in $483 million gold suit
Société Générale
Source - https://www.bloomberg.com/news/articles/2022-06-28/socgen-blames-clifford-chance-in-483-million-gold-suit?srnd=premium-europe
Where - United Kingdom
Business line - Trading and Sales
Copyright © Bloomberg (www.bloomberg.com) 2022

Societe Generale SA accused leading global law firm Clifford Chance of error strewn and careless advice in a long-running spat over a payment for $483 million in gold.

SocGen said the law firm, a member of London’s elite Magic Circle firms, “committed errors” and was “negligent” when it represented the French lender in a case against Turkish jewelers Goldas Kuyumculuk Sanayi Ithalat Ihracat AS, according to a letter published in documents prepared for a London lawsuit. As a result of the advice the bank is demanding unspecified losses, which it says Clifford Chance is responsible for paying.

The lender hired the firm in 2008 to help pursue Goldas after it alleged the company had failed to pay for 15.725 metric tons (17.334 tons) of gold bullion. The lawsuit was later struck out in 2017 after a judge ruled that SocGen had failed to properly serve Goldas subsidiaries in Turkey and Dubai.

Clifford Chance, which is now bringing a claim against the bank over SocGen’s letter, denies the allegations and wants a formal declaration that it’s not liable. “There is no evidence of negligence or breach of duty on the part of any member or partner,” the law firm said in the documents filed at the High Court in London on May 30.

SocGen accused Clifford Chance of breaching its duty of care by submitting forms late and not working in its interests, the court filings said. SocGen has not yet filed its defense documents.

Clifford Chance and SocGen declined to comment.