Morgan Grenfell & Co Ltd v Welwyn Hatfield District Council [1995] 1 All ER 1 Summary In an important case for capacity in derivatives law, an interest rate swap agreement between a district council and bank was found not to be a wagering contract under English law.  This was an important test case for UK […]

MonSolar IQ Ltd v Woden Park Ltd [2021] EWCA Civ 961 Summary An appeal by a Landlord in the Court of Appeal was dismissed, on the grounds that an indexation clause in a rent review – when read literally – produced an “arbitrary and irrational” result, did not have an intentional exponential increase due to […]

Lomas & Others v JFB Firth Rixson Inc & Others [2012] EWCA Civ 419 Summary Four appeals were jointly heard in a single hearing concerning Events of Default under 1992 ISDA Master Agreements between Lomas and four other differing parties, regarding the efficacy of conditions in the standard Master Agreement. The case offered definitive answers […]

Lehman Brothers Special Financing Inc v National Power Corporation & Another [2018] EWHC 487 (Comm) (12 March 2018) Summary This case, heard in the High Court, concerned good faith in the exercise of discretion when calculating a close-out amount under the 1992 ISDA Master Agreement. There was a disparity between the two parties over what […]

Kleinwort Benson Ltd v Birmingham City Council [1996] 4 All ER 733 Summary In an unjust enrichment case, there was no defence of passing on available for a local authority to use against an unjust enrichment claim, showing to what extent enrichment of the defendant must be at the expense of the claimant. The judgment […]

Haugesund Kommune & Another v DEPFA ACS Bank & Another [2010] EWCA Civ 579 3103 (Comm) Summary Norwegian municipalities, Haugesund and Narvik Kommunes, had no change of position defence to restitution claims by a bank, DEPFA ACS Bank, with whom they had entered swap contracts with that were later found to be ultra vires and […]

Hadley & Another v Baxendale & Others (1854) 9 Ex 341 This case concerns remoteness of losses – a line must be drawn dictating which losses are recoverable and which are not. There are two aspects – an objective, ‘normal’ possibility of loss, and a subjective, ‘known’ possibility of loss. If the actual loss suffered […]

Dunlop Pneumatic Tyre Co. v Selfridge & Co. [1915] UKHL 1 ([1915] AC 847) This case provided a statement of the fundamentals of privity of contract – no person can sue or be sued on a contract unless they are a party to it. Established in common law, this has been overturned by the Contracts […]

CFH Clearing Ltd v Merrill Lynch International [2020] 8 WLUK 84 The England and Wales Court of Appeal in August 2020 confirmed the High Court’s 2019 decision for MLI against CFH, dismissing the latter’s appeal. The courts did not find any express or implied term in the ISDA Master Agreement that a counterparty must adjust […]