Beaumont Publishes Article on Decisions in Derivatives Collateral-Call Lawsuit

April 24, 2015

Friedman Kaplan litigation partner Anne E. Beaumont has authored an article that appears in the March 19, 2015 issue of Hedge Fund Law Report titled "BDC Finance v. Barclays: Derivatives Collateral Calls in a Chaotic Market." The article discusses a series of court decisions in litigation between BDC Finance, a hedge fund, and Barclays regarding the parties' collateral calls in connection with a total return swap transaction entered into pursuant to the ISDA Master Agreement. In addition to discussing the facts of the case and the three decisions to date - including one most recently by the New York Court of Appeals - the article offers a number of lessons from the case about how to handle collateral calls on over-the-counter swap transactions in chaotic market conditions.