ABS Updates are brief notes on developing events relating to structured finance litigation
On January 3, 2026, Justice Patel of the New York County Commercial Division issued a decision in Axos Fin., Inc. v. Reception Purchaser, LLC, 2026 NY Slip Op. 50019(U), holding that a no action clause did not bar claims when a demand on the clause’s notice party would be futile . . . Continue reading No Action Clause Does Not Bar Claims When Demand on the Clause’s Notice Party Would be Futile
On January 15, 2026, the First Department issued a decision in Wells Fargo Bank, N.A. v. UBS AG, 2026 NY Slip Op. 00221, holding that a a claim for breach of a CMBS PSA was time-barred under New York’s borrowing statute based on the location of the special servicer . . . Continue reading Claim for Breach of CMBS PSA Time Barred Under Borrowing Statute Based on Location of Special Servicer
On May 19, 2025, Justice Masley of the New York County Commercial Division issued a decision in Matter of Bank of N.Y. Mellon, 2025 NY Slip Op 31952(U), enforcing an indenture’s write-up provisions notwithstanding past practice and arguments about waterfall logic . . . Continue reading Article 77 Decision Enforces Write-Up Provisions Notwithstanding Past Practice and Arguments About Waterfall Logic
On April 10, 2025, the First Department recently issued a decision in U.S. Bank N.A. v. DLJ Mtge. Capital, Inc., 2025 NY Slip Op. 02139, issuing its latest guidance on notice relating to put-back claims . . . Continue reading First Department Issues Latest Guidance on Notice Relating to Put-Back Claims
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 . . . Continue reading Court Upholds RMBS Failure to Notify Claims
On March 26, 2024, the First Department issued a decision in IKB Intl. S.A. v. Morgan Stanley, 2024 NY Slip Op. 01675, clarifying the limits of champerty claims . . . Continue reading First Department Clarifies Limits of Champerty Claims
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 . . . Continue reading Assignment of Claims Regarding Defaulted Bonds Not Champertous
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 . . . Continue reading In RMBS Put-Pack Action, Court Leaves Open Possibility of Post-Suit Notice of Breaches
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 . . . Continue reading RMBS Failure to Notify Claims Survive, But Only Within a Narrow Window
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 . . . Continue reading Court RMBS Loan Servicer’s Claim for Lost Profit Damages Arising from Seller’s Failure to Give Notice of Document Defects
