Australian supermodel Elle Macpherson, known as “The Body,” won the right to appeal in her case against Kaupþing in the Isle of Man, The Telegraph reports.
Photo Copyright Icelandic Photo Agency.
The high profile client of Kaupþing had GBP 2.54 million (ISK 473 million, USD 3.97 million) in the bank, as well as a loan of GBP 7.8 million (ISK 1.4 billion, USD 12 million) for the purchase of real estate in London, where she resides.
After Kaupþing collapsed in 2008, the liquidator insisted that she repay the entire loan back but Macpherson argued that she could offset her personal deposits in the bank to lower her outstanding debt, ruv.is reports.
Macpherson then took her case to the Queen’s Privy Council, the highest court of appeal for the British Crown Dependencies (independently administered possessions of the British Crown, such as the Isle of Man), and has now won the right to appeal the earlier decision by the Supreme Court of the Isle of Man.
The case was complicated by the fact that the mortgage was held through a nominee company to keep her address confidential. The bank’s liquidators concluded that the borrower was technically a company.
The administrator has been ordered to pay Macpherson’s legal bills.
The ruling is expected to bring hope to other customers of insolvent banks who are seeking to win compensation, the Mail Online reports.