Careful contract negotiation can limit the potential damage from insolvency in a construction firm’s supply chain.

“Your Courage, Your Cheerfulness, Your Resolution; Will Bring Us Victory” – Ministry of Information, 1939

The phrase “unprecedented times” seems to crop up in almost every recent article and news report and there is no doubt that it is a true statement. It is therefore rather nice that some things are reassuringly the same. This is true of my recent experience of advising on a number of adjudications, in this period of lock-down.

The High Court in London handed down judgment on Part C of the Lehman Waterfall II Application on 5 October 2016.

The judgment examines the extent of creditors’ entitlements to Default Rate interest on debts arising under ISDA Master Agreements governed by English law and New York law. As some £4.4 billion of LBIE’s admitted claims arise under ISDA Master Agreements and the debts were outstanding for more than five years, this judgment will materially influence the amount of money which must be applied in satisfaction of creditors’ entitlements to statutory interest.