In May, we
wrote about a number of recent cases addressing the
enforceability of oral agreements in syndicated loan and bankruptcy
claims trading. One of those cases, Solus v. Perry, is still
active at the trial court level in New York. Last month, the court
entered an
order denying both parties' motions for summary
judgment.
At issue in Solus v. Perry is whether the parties agreed
to all of the material terms of a transaction in which Solus would
purchase Perry's participation interests in claims against the
bankruptcy estate of Ponzi schemester Bernie Madoff's
investment firm. Although Solus and Perry never signed a written
contract, Solus argues that the parties agreed to all of the
material terms necessary to create a binding oral agreement under
New York law (i.e., asset, quantity, and price)
in recorded telephone conversations, emails, and Bloomberg
messages. Perry contends that no agreement was formed because
certain other terms (which Perry characterizes
