VCG Special Opportunities Master Fund Ltd. v. Citibank, N.A.
This action involves a credit default swap (CDS) transaction between Plaintiff VCG Special Opportunities Master Fund Limited and Defendant Citibank, N.A. VCG, as the protection seller, challenged Citibank's demands for additional collateral and its declaration of a "Floating Amount Event" related to an "Implied Writedown" on a reference obligation. Citibank counterclaimed for VCG's breach of contract. The court granted Citibank's motion for judgment on the pleadings, finding Citibank's actions proper and VCG's challenges, including claims for rescission and unjust enrichment, without merit. The court concluded that VCG waived its right to dispute the collateral demands by continuing to perform under the contract and failing to utilize the agreed-upon dispute resolution mechanism.