Template:2(a)(iii) case table
| Case | Date | Judge | Issue | And? | Status |
|---|---|---|---|---|---|
| Enron v TXU | 2003 | NSW Supreme Court | If you suspend under 2(a)(iii) do you eventually have to close out or can you just sit there indefinitely? | You can just sit there for ever. | After global financial crisis this has become less and less popular with regulators, and is often amended (Wait Period) but it is still law. |
| Marine Trade v Pioneer | 2009 | Flaux J (High Court) | 1. Can you net under Section 2(a) if there is an ongoing Event of Default? 2. (Obiter) If the Event of Default ceases, do payment obligations resume? |
1. No, because the payment is not presently due. 2. No. The obligation is effectively extinguished. |
1. Correct. 2. Overruled by Lomas v Firth Rixson. |
| Pioneer v Cosco | 2011 | Flaux J (High Court) | If the Event of Default ceases, do payment obligations resume? | No. The obligation is effectively extinguished. | Reversed on appeal (in Lomas v Firth Rixson) |
| Lomas v Firth Rixson | 2012 | Longmore LJ (Court of Appeal) | If the Event of Default ceases, do payment obligations resume? | Yes. The obligation is suspended, not extinguished. | Good law. |
| Pioneer v TMT | |||||
| Metavante v Lehman |