Reviewable Transactions

In Lomas and others v JFB Firth Rixson Inc and others [2012] EWCA Civ 419, the Court of Appeal considered the appeals arising from four High Court rulings on the effect of section 2(a)(iii) of the ISDA Master Agreement. Edmund Parker of Mayer Brown International LLP and James Warbey of Milbank, Tweed, Hadley & McCloy LLP have commented on the decision for PLC Finance. Note: Permission to appeal to the Supreme Court was refused on 6 December 2012 (15 November 2012 in relation to Britannia Bulk plc v Pioneer Navigation Ltd and others). If you do not yet subscribe to PLC, you can request a free trial by completing this form or contacting the PLC Helpline.

In Lomas and others (together the Joint Administrators of Lehman Brothers International (Europe) (in administration)) v JFB Firth Rixson, Inc and others and ISDA as intervenor [2010] EWHC 3372 (Ch), the High Court considered the effect of section 2(a)(iii) of the ISDA Master Agreement on the obligations of parties to a swap agreement, following an event of default. NOTE: this case was upheld by the Court of Appeal on 3 April 2012, see Legal update, Section 2(a)(iii) ISDA Master Agreement: Court of Appeal judgment on four appeals.

An update on the decision of the US Bankruptcy Court for the Southern District of New York in Lehman Brothers Special Financing Inc. v. BNY Corporate Trustee Services Ltd., Case No. 08-13555 (Bankr. S.D.N.Y. January 25, 2010), in which the court declined to follow the decisions of the English courts in parallel proceedings.