Case Against Glitnir Seven Resumed in New York Skip to content

Case Against Glitnir Seven Resumed in New York

By Iceland Review

A New York court has agreed to reopen the damages case of Glitnir Bank’s winding-up committee against seven individuals and the auditing firm PricewaterhouseCoopers after originally having dismissed it, given that all conditions for the dismissal weren’t fulfilled.

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The headquarters of Glitnir, now Íslandsbanki, in Reykjavík. Copyright: Icelandic Photo Agency.

Chairwoman of Glitnir’s winding-up committee Steinunn Gudbjartsdóttir confirmed to Morgunbladid that the case will be reopened.

“We believe this case belongs in the US. We believe it was right to file the lawsuit there. The situation is that more than 90 percent of our claimants are living abroad and most of them are American. We believe the damages are there,” Gudbjartsdóttir commented.

The case was dismissed in December 2010 on the basis that all litigants were Icelandic. The court argued the case should therefore be heard in Iceland. However, there were two conditions for the dismissal.

On the one hand, all seven individuals and PricewaterhouseCoopers must acknowledge the jurisdiction of Icelandic courts in this case.

On the other hand, they must declare they won’t object that the verdict announced in their case in Iceland could be enforceable in New York. This condition was not fulfilled.

According to ruv.is, all seven defendants were supposed to sign a declaration stating that if the winding-up committee won the case against them in Iceland, their assets in the US would be claimable.

When the extension to sign the declaration expired in January, two signatures were lacking, that of Hannes Smárason and Pálmi Haraldsson. The court therefore concluded that the conditions of the dismissals had not been fulfilled and decided to reopen the case.

However, the court posted Smárason’s signature dated yesterday on its website last night.

The other five defendants are Jón Ásgeir Jóhannesson, Lárus Welding, Thorsteinn Jónsson, Jón Sigurdsson and Ingibjörg Pálmadóttir.

All of these seven people were either shareholders or executives of Glitnir. None of them could be reached for comment by the Icelandic media on the reopening of the case.

Click here to read more about this case.

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