CSX CORP. v. CHILDREN'S INV. FUND MANAGEMENT (UK)

Docket Nos. 08-2899-cv (L), 08-3016-cv (XAP).

654 F.3d 276 (2011)

CSX CORPORATION, Plaintiff-Appellant-Cross-Appellee, v. The CHILDREN'S INVESTMENT FUND MANAGEMENT (UK) LLP, The Children's Investment Fund Management (Cayman) Ltd., The Children's Investment Master Fund, 3G Capital Partners Ltd., 3G Capital Partners, L.P., 3G Fund, L.P., Christopher Hohn, Snehal Amin, and Alexandre Behring, also known as Alexandre Behring Costa, Defendants-Third-Party-Plaintiffs-Counter-Claimants-Appellees-Cross-Appellants.

United States Court of Appeals, Second Circuit.

Decided: July 18, 2011.


Attorney(s) appearing for the Case

Rory O. Millson ( Francis P. Barron & David R. Marriott , on the brief), Cravath, Swaine & Moore LLP, New York, NY, for Plaintiff-Appellant-Cross-Appellee.

Christopher Landau, P.C. ( Patrick F. Philbin & Theodore W. Ullyot , Kirkland & Ellis LLP, Washington, D.C.; Peter D. Doyle & Andrew M. Genser , Kirkland & Ellis LLP, Howard O. Godnick & Michael E. Swartz , Schulte Roth & Zabel LLP, New York, NY, on the brief), Kirkland & Ellis LLP, Washington, D.C., for Defendants-Appellees-Cross-Appellants.

Adam H. Offenhartz , Aric H. Wu & J. Ross Wallin , Gibson, Dunn & Crutcher LLP, New York, NY, for Amicus Curiae Coalition of Private Investment Companies.

Richard M. Lorenzo , James G. Szymanski & M. Alexander Bowie II , Day Pitney LLP, New York, NY, for Amici Curiae Former SEC Commissioners and Officials and Professors.

Katherine Tew Darras & Rosario Chiarenza , International Swaps and Derivatives Association, Inc., New York, NY; Ira D. Hammerman & Kevin M. Carroll , Securities Industry and Financial Markets Association, Washington, D.C.; David M. Becker , Edward J. Rosen , Michael D. Dayan , Joon H. Kim & Shiwon Choe , Cleary Gottlieb Steen & Hamilton LLP, New York, NY & Washington, D.C., for Amici Curiae International Swaps and Derivatives Association, Inc., and Securities Industry and Financial Markets Association.

Roger D. Blanc , Martin Klotz & Richard D. Bernstein , Willkie Farr & Gallagher LLP, New York, NY, for Amicus Curiae Managed Funds Association.

Daniel J. Popeo & Richard A. Samp , Washington Legal Foundation, Washington, D.C., for Amici Curiae Washington Legal Foundation, National Association of Manufacturers & Business Roundtable.

Before: NEWMAN, WINTER, and CALABRESI, Circuit Judges.


JON O. NEWMAN, Circuit Judge:

This case comes to us raising issues concerning a contractual arrangement known as a "cash-settled total return equity swap agreement" although our disposition at this stage of the appeal touches only tangentially on such issues.

The Children's Investment Fund Management ("TCI") and 3G Capital Partners ("3G")1 are hedge funds that entered into cash-settled total-return equity swap agreements referencing...

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