ABS Updates are brief notes on developing events relating to structured finance litigation
On March 17, 2023, Justice Borrok of the New York County Commercial Division issued a decision in Antara Capital Master Fund LP v. Bombardier Inc., 2023 NY Slip Op. 50206(U), holding that a no-action clause barred suit when the plaintiff failed to show that demand under the clause would be futile . . . Continue reading No-Action Clause Bars Suit
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
On March 8, 2023, the First Department heard argument on the appeal in MLRN v. U.S. Bank. Continue reading First Department Hears Appeal in MLRN v. U.S. Bank
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
On January 3, 2023, AMBAC announced that it had settled its claim against Nomura for securitizing defective loans for $140 million.
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
On November 17, 2022, the First Department issued a decision in Black Diamond Capital Mgt., LLC v. Oppenheimer Master Loan Fund, LLC, 2022 NY Slip Op. 06544, holding that an exchange between traders was insufficient to create a binding agreement to sell . . . Continue reading Exchange Between Traders Insufficient to Create Binding Agreement to Sell
On October 14, 2022, Justice Chan of the New York County Commercial Division issued a decision in Park Royal I LLC v. HSBC, Index No. 657329, holding that a certificateholder’s failure to have Cede & Co. authorizations when it commenced an action was a curable defect . . . Continue reading Failure to Have Cede & Co. Authorizations When Action Commenced is Curable
On September 30, 2022, Judge Engelmayer of the SDNY in Ambac v. U.S. Bank, 17-cv-02614-PAE-KHP, issued a decision in an RMBS trustee action discussing, among other things, when claims against a trustee accrue. Continue reading SDNY Issues New RMBS Decision; Discusses When Claims Against Trustee Accrue
The last week before Labor Day was a very busy week in the RMBS litigation world! Continue reading Summer Ends With a Busy Week in the RMBS Litigation World
