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Brandl & Talos Successful in Defense of RBB Klagenfurt

Brandl & Talos Successful in Defense of RBB Klagenfurt

Austria
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Brandl & Talos has successfully defended RBB Klagenfurt against a claim for damages in the amount of EUR 400 million.

According to Brandl &Talos, "in the course of [an] investor's scandal surrounding Wolfgang Auer-Welsbach and his criminal acts, RBB Klagenfurt was accused as the depositary bank of AvW customers [of being] responsible for a loss of around 400 million euros. A decision rendered by the Klagenfurt District Court in February 2010, in which an AvW investor was fully entitled to compensation, served as the basis for the damage claim. These proceedings serve as a model for all other pending processes."

Brandl & Talos points out that a separate proceeding involving similar claims in March also resulted in a finding for the bank, making it "therefore extremely questionable whether investors will continue to negotiate hundreds of proceedings pending before this decision in view of the cost risk." According to the firm, "RBB Klagenfurt sees its position considerably strengthened by the OGH decision."

Brandl & Talos Partner Ernst Brandl was extremely pleased with the result, saying: "We are very optimistic that the decisions of the OGH in the two proceedings now mean the end of the disputes, which are — in our view — wrongly constituted claims." Talos continued: "Fortunately, we have succeeded in convincing the courts of our legal positions. The verdict is an important signal for the pending court cases surrounding the AvW matter and a relief for all the depositary banks of the country. These are liable only in very limited circumstances for the quality of the papers deposited with them."

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