Appellate Court Reverses $10M Credit Swap Decision

Law360, New York (February 7, 2007, 12:00 AM EST) -- An appellate court on Monday reversed a $10 million decision in a credit default swap contract dispute between Aon Corp. and the investment bank Société Générale SA, upholding the contractual requirement of the parties’ agreements.

The U.S. Court of Appeals for the Second Circuit found that the district court had erred in its decision to award Aon payment under its CDS agreement with SG, an international bank based in France.

Instead, the appellate court found that the credit event Aon had claimed did not occur under...
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