The courts have, on occasion, been prepared to uphold claims notwithstanding that they recognise that the effect of a decision will most likely result in a large amount of subsequent litigation. In the case of Hazell v Hammersmith and Fulham LBC[1992] 2 AC 1 the House of Lords upheld a claim that interest rate swaps entered into with local authorities in the United Kingdom were void although they knew that large numbers of such contracts had been entered into, and that unwinding the swaps would result in a large amount of litigation. In the event, over 200 separate sets of legal proceedings were launched,In his judgment in Re Interest Rate Swap Litigation (unreported, 28 November 1991) Hirst J recorded that "As at 30th October, 1991 there were 203 extant swap actions, 18 had been settled after the issue of proceedings, 2 had been discontinued and 4 are in progress in the Chancery Division. Although in the vast majority of cases the banks are plaintiffs, there are 10 actions involving 8 local authorities in which a local authority is plaintiff because they are net losers under their swap transactions. The number of plaintiff banks in these actions totals in all 42 and the number of local authority defendants 62. These figures may need up-dating, but give a substantially accurate picture." several of which were litigated to the Court of Appeal and three of which reached the House of Lords.
