Lehman respondents file appeal

A number of parties to the Lehman Brothers “client money application” have appealed against the December judgment of Mr Justice Briggs in an attempt to clarify issues in the case.

Lehman Brothers International Europe (LBIE) administrators PricewaterhouseCoopers announced that four respondents to the case have lodged an appeal in the case, which deals with what happens to client money that was not segregated when the bank went into insolvency in September 2009.

Lehman Brothers Inc (LBI), Lehman Brothers Holdings Inc. (LBHI), Lehman Brothers Finance (LBF), and the CRC Credit Fund (CRC) have all filed appeals.

Hedge fund CRC was a representative of unsegregated clients. LBI and LBF joined forces with CRC for the case as LBIE had not segregated money held for the Lehman affiliates at the time of administration.

Hedge Funds Review understands that CRC, LBI and LBF have appealed against Justice Briggs's decision that unsegregated client money would be treated as part of the general pool of LBIE assets and that only segregated clients would recover their money.

Meanwhile, LBHI is understood to have appealed points pertaining to the statutory trust created by the UK's Financial Services Authority (FSA) rules.

The appeal has been expedited and could be heard in the first quarter of 2010.