Innovatis Investment Fund Ltd v Ejder Group Ltd

Ejder dealt as principal and not as agent; the transaction was a repo requiring repurchase at 68.5% of face value; Ejder's failure to repurchase constituted breach of contract.

Parties: Claimant: Innovatis Investment Fund Limited; Defendant: Ejder Group Limited
Jurisdiction: England and Wales
Judgment Date: 28 June 2010
Procedural Posture: Commercial / Final Judgment
Outcome: judgment for claimant
Legal Topics: Agency, Repurchase Agreements (repo), Breach of Contract, Damages

Contract Law Commercial Law Agency Repurchase Agreements (repo) Breach of Contract Damages

Case Brief

Summary, issues, holding and outcome

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Parties

Innovatis Investment Fund Limited

Claimant

Ejder Group Limited

Defendant

Procedural Posture

Commercial / Final Judgment

Legal Issues

1 Whether Ejder dealt as principal or agent in the sale of the Lehman Note
2 Whether the transaction was a repo or an option
3 Whether Ejder breached its obligation to repurchase the Note

Ratio Decidendi

Ejder dealt as principal and not as agent; the transaction was a repo requiring repurchase at 68.5% of face value; Ejder's failure to repurchase constituted breach of contract.

Court Disposition

judgment for claimant

Orders

Damages to be assessed by reference to the sum payable for the exercise of the repo less amounts realised on the ultimate sale in October 2009.