On May 1, 2024, Justice Reed of the New York County Commercial Division issued a decision in Deutsche Bank Natl. Trust Co. v. HSBC Fin. Corp., 2024 NY Slip Op. 50512(U), upholding failure to notify claims, explaining:
In this court’s view, the second amended complaint sufficiently states a claim for the HASC defendants’ alleged…
On December 28, 2023, Justice Crane of the New York County Commercial Division issued a decision in Cortlandt St. Recovery Corp. v. Hellas Telecommunications II, S.C.A., 2023 NY Slip Op. 34553(U), holding that the assignment of claims regarding defaulted bonds was not champertous, explaining:
The non-parties claim the assignment to Cortlandt is champertous and…
On December 30, 2023, Justice Cohen of the New York County Commercial Division issued a decision in U.S. Bank N.A. v. DLJ Mtge. Capital, Inc., 2023 NY Slip Op. 34560(U), holding open the possible viability of post-suit notice of representation and warranty breaches, explaining, in a footnote:
Defendants also seek dismissal of the Trustee’s…
On October 27, 2023, Justice Reed of the New York County issued a decision in U.S. Bank N.A. v. EquiFirst Corp., 2023 NY Slip Op. 51150(U), holding that failure to notify RMBS put-back claims survived a motion to dismiss, but only within a narrow window.
Justice Reed did not dismiss the suit, but plaintiffs…
On September 27, 2023, Justice Crane of the New York County Commercial Division issued a decision in HSBC Bank USA, N.A. v. Nomura Credit & Capital, Inc., 2023 NY Slip Op. 33361(U), dismissing an RMBS loan servicer’s claim for lost profits damages arising from the seller’s failure to give notice of document defects, explaining:…
On September 21, 2023, Judge Engelmayer of the S.D.N.Y, issued a decision in Ambac Assurance Corporation v. U.S. Bank, 17 Civ. 2614 (PAE) (KHP), holding that where the servicer and originator were the same, the originator’s failure to cure defective loans was a servicer failure to perform event of default.
The court framed the…
On September 19, 2023, Justice Crane of the New York County Commercial Division issued a decision in HSBC Bank USA, N.A. v. Nomura Credit & Capital, Inc., 2023 NY Slip Op. 33252(U), dismissing a claim against Ocwen for failing to give Nomura notice of representation and warranty breaches because Normura would have refused to…
On August 28, 2023, Justice Crane of the New York County Commercial Division issued a decision in Fortelus Funds Invs. Trust v. Hellas Telecom. (Luxembourg) II SCA, 2023 NY Slip Op. 32978(U), rejecting a champerty defense where the plaintiffs had purchased defaulted bonds with the intention of suing to collect on them, explaining:
Plaintiffs…
On June 15, 2023, the Court of Appeals issued a decision in IKB Intl., S.A. v. Wells Fargo Bank, N.A., 2023 NY Slip Op. 03302, holding that a no-action clause cannot bar a claim against an RMBS trustee, explaining:
Standard no-action clauses in trust agreements provide that a shareholder must satisfy certain requirements before…
On March 30, 2023, the First Department issued a decision in MLRN LLC v. U.S. Bank, N.A., 2023 NY Slip Op. 01748, deciding several issues relating to investor claims against RMBS trustees.
Among the court’s holdings were:
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