US financial giant, JP Morgan has been ordered to pay a total of $50 million in damages to Russian billionaire Leonard Blavatnik after losing a claim for damages.

Mr Blavatnik filed the claim against the financial company after suffering losses resulting from the US subprime mortgage market. New York judge Melvin Schweitzer has ruled that JP Morgan has breached he terms of the contract with Mr Blavatnik's investment fund.

The judge did not agree with the claim for negligence because the investments were considered reasonable at that time. Mr Blavatnik had filed a lawsuit against the US bank in 2009 aiming to recover more than $100 million.

Mr Blavatnik, who is the one of the richest man in the world, claimed that JP Morgan Investment Management had promised him that they will invest his money in a conservative manner while opening his account in 2006. The bank instead breached a 20 per cent limit decided for mortgage-backed securities by classifying securities backed by a pool of subprime loans.

Mr Blavatnik welcomed the ruling, saying in a statement, "There are a lot of people out there who, I understand, feel they have been wronged by JP Morgan but cannot afford to take on a huge bank. They shouldn't have to."