The Tchenguiz brothers have been given the go-ahead to sue Kaupthing Bank for £1billion in damages by a High Court judge.
The bank, a failed Icelandic one, had initially bought a “strike-out” action in an attempt to block a legal challenge from the property tycoon brothers, but this was blocked.
Vincent and Robert Tchenguiz were given permission to go ahead with their plans by Justice Michael Burton.
The brothers had previously tried to sue the bank using Icelandic courts, but the move was thrown out in Iceland.
The brothers were among the banks largest borrowers when it collapsed in 2008, leading it to seize their assets they had used to secure the loans.
The bank claimed they did not accept the court’s decision through a statement on the website, arguing it had been made on technical grounds.
“Should the English court proceed to give a substantive judgement concerning the merits of the trustee’s claims, such judgement will not have direct impact in Iceland nor will it be binding on the Icelandic courts,” said the statement.
“The Icelandic courts will decide independently if the claims against Kaupthing are valid.”