The Unilever v. Merrill Lynch investment managers case has been a gripping saga, largely as a result of the high profile glamour of Merrill's Carol Galley and the amount of money at stake.
What is ...
The Unilever v. Merrill Lynch investment managers case has been a gripping saga, largely as a result of the high profile glamour of Merrill's Carol Galley and the amount of money at stake.
What is revealing about this case is that attention to internal systems - including delegation, supervision and risk management - are relevant to all professional activities and if proper attention is not paid to them, an organisation will be exposed to a higher degree of risk and an increase in the likelihood of claims.
A further lesson to be learned is that the court should be seen very much as the last resort. It is rare for parties to escape completely unscathed from such a public battle and the outcome is difficult to predict, hence the attraction of alternative dispute resolution (ADR).
This case was settled out of court and no legal precedent has been set, but the publicity it attracted will inevitably cause those disappointed with their fund's performance to examine more closely the contracts and the conduct of fund managers.
Much of the mystique surrounding the activities of fund managers has been stripped away and, where funds have either lost money or failed to achieve the targets set, there will be a greater temptation to consider legal redress.
This mirrors the increasing tendency in society that, when things do not turn out as we would like, to try to find someone to blame, and sue.
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