Contract

The claimant, Credit Suisse, brought proceedings, claiming €83,196,829 from the defendant company as money allegedly due under an International Swaps and Derivatives Association (ISDA) 2002 agreement (the master agreement) in respect of 11 transactions it had allegedly entered with the defendant. The claimant contended that it had duly terminated the master agreement after the defendant had failed to provide security due under a credit support annex. The Commercial Court held that, notwithstanding that three of the contracts, comprising six of the disputed transactions, had been outside the defendant’s capacity and therefore invalid, because of warranties in additional representations in the master agreement, that did not affect Credit Suisse’s rights or the defendant’s obligations under the master agreement. Alternatively, the claimant was entitled in damages for breach of the warranties to the amount that they could have recovered under the master agreement if all the agreements were valid and binding on the defendant.