August 13, 2014
On August 6, Weil secured a major summary judgment victory for Credit Suisse in New York Supreme Court, which awarded Credit Suisse $50 million in principal and 9% interest dating back to 2008. Credit Suisse sued several investment funds managed by Highland Capital for their failure to settle trades they entered into in 2008 with respect to loans that Credit Suisse had arranged to third-party real estate developers. Highland claimed, among other things, that the trades were unenforceable because Credit Suisse had breached alleged contractual obligations under the credit agreements with the developers, and also argued that interest should be based on the rate in the trade confirmations for delayed settlements (around 0.45%) rather than the New York statutory rate (9%) for breach of contract.
The Court granted our motion for summary judgment and rejected each of Highland’s defenses, concluding that the credit agreements are irrelevant to the trades between Credit Suisse and Highland, and that the trade confirmations’ rate of interest did not apply where a party breaches an obligation to settle a trade. The Court ordered entry of judgment for the full amount of principal sought ($50,278,898.31) plus interest at 9% running from October 16, 2008.