Court Rejects Champerty Defense Where Plaintiffs Had Purchased Defaulted Bonds with the Intention of Suing to Collect on Them
ABS Update / Champerty / Champerty / Commercial Case Notes

Court Rejects Champerty Defense Where Plaintiffs Had Purchased Defaulted Bonds with the Intention of Suing to Collect on Them

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 . . . Continue reading Court Rejects Champerty Defense Where Plaintiffs Had Purchased Defaulted Bonds with the Intention of Suing to Collect on Them

Assignment of Claims for Purpose of Suing on Them to Recover Damages Not Champertous
ABS Update / Champerty / Champerty / Commercial Case Notes

Assignment of Claims for Purpose of Suing on Them to Recover Damages Not Champertous

On March 1, 2023, Justice Crane of the New York County Commercial Division issued a decision in IKB Intl. S.A. v. Morgan Stanley, 2023 NY Slip Op. 30614(U), holding that an assignment of claims for the purpose of suing on them to recover damages was not champertous . . . Continue reading Assignment of Claims for Purpose of Suing on Them to Recover Damages Not Champertous

Certificateholder Cannot Sue a Third-Party Without Complying with the No-Action Clause, Even When the Trustee Consents
ABS Update / Put-Back Actions

Certificateholder Cannot Sue a Third-Party Without Complying with the No-Action Clause, Even When the Trustee Consents

On March 2, 2023, the First Department issued a decision in Freedom Trust 2011-2 v. DB Structured Prods., Inc., 2023 NY Slip Op. 01136, holding that a certificateholder cannot sue a third-party without complying with the no-action clause, even when the trustee consents . . Continue reading Certificateholder Cannot Sue a Third-Party Without Complying with the No-Action Clause, Even When the Trustee Consents

Party Cannot Rely on the Failure of a Condition Precedent When the Party Caused That Failure
ABS Update / Commercial Case Notes / Contracts

Party Cannot Rely on the Failure of a Condition Precedent When the Party Caused That Failure

On December 15, 2022, the First Department issued a decision in FPG Maiden Lane, LLC v. Bank Leumi USA, 2022 NY Slip Op. 07150, holding that a party may not rely on the failure of a condition precedent to occur when it was responsible for that failure . . . Continue reading Party Cannot Rely on the Failure of a Condition Precedent When the Party Caused That Failure