By Steve Slater
LONDON, Jan 31 (Reuters) - Barclays has been toldto hand over thousands more emails and other documents from itsformer bosses in a UK court case tied to the allegedmanipulation of Libor interest rates, which will start in April.
In a case being heard at London's High Court, Barclays isaccused by a UK residential care home operator of mis-sellingproducts that were based on Libor rates. The hearing will starton April 29 or 30 and is expected to last for about six weeks.
It is seen as a test case for whether the manipulation ofLibor - which several banks around the world have admitted andbeen fined for - means deals such as interest rate hedges thatwere based on benchmark rates may have been mis-sold.
In a hearing on Friday to resolve issues before the casestarts, judge Julian Flaux said Barclays must produce documentsfrom several executives and traders related to a fund the bankran. That includes emails and other correspondence from formerChief Executive Bob Diamond and investment bank bosses RichRicci and Jerry del Missier.
"I'm not going to give them the key to the door, but Icertainly think more (disclosure) is in order," Flaux said.
The order could add up to 38,000 more documents to the220,000 already produced for the case.
Diamond, Ricci and del Missier are among 23 people who arebeing called as witnesses for the trial. Former Finance DirectorChris Lucas will also be called.
Diamond and del Missier left Barclays in 2012 shortly after Barclays agreed to pay a $450 million settlement with U.S. andUK authorities due to alleged Libor manipulation. Ricci andLucas left last year.
Guardian Care Homes claims the bank's rigging of Libor meantinterest rate hedging products it was sold were invalid and issuing for 70 million pounds ($115.5 million). Barclays, whichsays it is owed the same amount by Guardian, said the claims arewithout merit and it will provide the information requested.
Guardian Care Homes said at the heart of its case is theRicardo Master Fund, which was run by Barclays. Guardian saidRicardo had $4 billion invested in securities and relied on low3-month sterling Libor rates as "its most profitable singlestrategy".
The care homes operator said Barclays was therefore a directbeneficiary of the downward manipulation of Libor rates, whileat the same time the bank was selling it an interest ratehedging product "on the basis that Barclays believed rates wouldgo up".
Flaux told Barclays' lawyers they must provide by March 21documents where the Ricardo fund was mentioned by Diamond andothers. Documents from former Barclays trader Quan Lee, and MarkDearlove, who is still at the bank and previously was moneymarkets desk head, must be handed over first.
Flaux however refused Guardian's request to have moredocuments about the alleged manipulation of Euribor benchmarkrates provided by Barclays.
"There's going to be enough to fight about in April withoutbringing in Euribor," he said, referring to another benchmark.