Published: Thursday, May 01, 2008
Author: Julian Randall, Ivan Wilkinson
Published in: International Financial Law Review
Subject: Litigation and Dispute Resolution

In light of the turmoil in the structured finance markets, we are likely to see increasing numbers of UK capital markets contracts being unwound as events of default occur. In such circumstances the non-defaulting counterparty often determines the default valuations of the remaining assets. But if so, how far can it perform the valuation in its own interests - and how far is it obliged to ensure fairness to the party in default? This article looks at the Court of Appeal decision in Socimer International Bank Ltd v Standard Bank London Ltd (2008) which offers some helpful guidance.