South Square barristers in landmark ISDA Master Agreement case
A landmark judgment on the interpretation and effect of the ISDA Master Agreement was today handed down by the Court of Appeal. Ten barristers from South Square were involved in the combined appeal from four separate first-instance decisions in the Commercial Court and the Chancery Division. In total, five silks and five juniors from South Square represented six different parties in the combined appeals, including ISDA itself, which intervened in the appeals.
The judgment has great significance for out of the money parties, whose counterparty is subject to an Event of Default. It concludes that they remain potentially liable, such that they would still have to pay if the Event of Default is cured, even after the maturity of the transaction. This will resonate throughout the global derivatives market, given the extensive use of the ISDA Master Agreement in a great variety of markets and the billions of dollars traded in reliance of it every year. (See link for more information on the case.)
The case underlines South Square’s prominence in the banking and financial sector beyond its core insolvency expertise. The following members of Chambers appeared for various parties on the appeal: William Trower QC, Mark Phillips QC, Robin Dicker QC, Antony Zacaroli QC, Felicity Toube QC, Jeremy Goldring, Daniel Bayfield, Richard Fisher, Stephen Robins and Joanna Perkins.