Template:2(a)(iii) case table

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Case	Date	Judge	Issue	And?	Status
Enron v TXU	2003	NSW Supreme Court (Straya)	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. Seems harch but look, don’t @ me. A deal’s a deal.	After global financial crisis this has become less and less popular with regulators, and is often amended (Wait Period) but it is still law. Unless you are seeking safe harbors from the US Bankruptcy Code, as Metavante was. But in the proper, right-thinking English law world, Enron v TXU is stioll right.
Marine Trade v Pioneer	2009	Flaux J (High Court)	1. Can you net under Section 2(c) 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. Doubted (Obiter) by Pioneer v TMT. 2. Overruled by Lomas v Firth Rixson.
Metavante v Lehman	2009	Bankruptcy Court for the Southern District of New York	If you suspend under 2(a)(iii) do you eventually have to close out or can you just sit there indefinitely?	Yes you do have to close out, but for special reasons involving deep magic of safe harbors from the Bankruptcy Code but if you are incautious enough to not have closed out promptly, not only do you have to resume your payments, but you lost the right to close out at all, and have to pay default interest and everyting	Very, very litigationey. But now also widely considered to be “restricted to its facts”, dependent on US Bankruptcy Code safe harbors etc.
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)
Pioneer v TMT	2011	Gloster J (High Court)	1. Can you net under Section 2(c) if there is an ongoing Event of Default?	Yes. It would be absurd for a Defaulting Party to have to pay more than it would owe if it were not Defaulting.	Good law (albeit Obiter)
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.