The Court of Appeal of the Eastern Caribbean last month heard arguments in the appeal brought by the liquidators of Fairfield Sentry Limited, one of the main feeder funds which invested in Bernard L. Madoff Investment Securities Limited.
The appeal stems from the earlier rulings by the BVI Commercial Court which ruled that the claim brought by Fairfield was unsustainable and should be dismissed.
Fairfield argued that there was a mutual mistake in relation to the true value of the Madoff investment, however, the Court found that the mutual mistake claim was not sustainable on that facts. Referring to Bell v Lever Bros  AC 161 the Court found that even if there had been a mistake that the investor and Fairfield shared as to the underlying investment in Madoff’s company, Fairfield could still perform its obligations to investors on a redemption.
This Guide is general in scope and is not intended to be comprehensive. It is not a substitute for legal advice.