Credit Suisse, which has been sued by a former stockbroker for $26 million over losses, has lost an appeal against a Singapore court’s earlier decision refusing its request to strike the claim down.

Credit Suisse, which has been sued by a former stockbroker for $26 million over losses, has lost an appeal against a Singapore court’s earlier decision refusing its request to strike the claim down.

It is understood that this latest court judgement relates to a preliminary dispositive application that Credit Suisse made, but did not examine the merits or facts of the case. Court proceedings have not started on the merits of the facts of the case so far, and the bank has not filed any defence against the claim yet.

“We do not comment on ongoing litigation matters. The bank will defend itself vigorously against all of the plaintiff’s allegations," Credit Suisse told this publication in an emailed statement.

Koh Kim Teck sued the bank’s Singapore unit because he claimed the bank gave him inadequate time to raise collateral in 2008 after suffering losses from what are called “knock-out discount accumulators” - a form of derivative that commits investors to buy securities over a specified period of time.

“The plaintiff filed a fairly lengthy statement of claim. The defendant sought to strike out his claim. This was refused by the assistant registrar. The defendant then appealed,” according to an account of the proceedings by the High Court in the Asian city-state.

Aedit Abdullah JC, in his statement on the matter, said: “In summary, the proper resolution of the case throws up a number of factual and legal issues that cannot be properly resolved at this stage. The plaintiff’s claim cannot be said to disclose no reasonable cause of action or be frivolous, or vexatious, or an abuse of the process of the court. For the reasons stated, I dismiss the appeal. I will hear the parties on costs.”

Koh Kim Teck is suing Credit Suisse’s Singapore branch over losses incurred by him because of what he alleges were breaches of duty by the bank in advising him on investments.

The plaintiff carried out his investments and banking with the bank through a trust company, Smiling Sun Ltd. Koh Kim Teck filed a “fairly lengthy statement of claim”, the court papers said; Credit Suisse sought to strike that claim out but this was refused by the assistant registrar, and then Credit Suisse appealed that decision.