Lehman Court Finds Safe Harbors Protect Damage Calculation Provisions in Swap


Orrick Restructuring Partner Doug Mintz and Commercial Litigation Partner Jonathan Guy co-authored an alert analyzing an important opinion issued in the Lehman Brothers bankruptcy. The opinion protects a non-debtor counterparty's right to rely on a contractually agreed methodology for damages calculations upon the liquidation of a safe harbored swap agreement—even if the debtor's bankruptcy triggers the provision.