ABS Updates are brief notes on developing events relating to structured finance litigation
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
John St Martin of the Oakleaf Group recently published an analysis for the effect of forbearance underpayments on RMBS trust terminations . . . Continue reading RMBS Optional Terminations: More on Forbearance Underpayments
On June 21, 2022, Justice Chan of the New York County Commercial Division issued a decision in Deutsche Bank Natl. Trust Co. v. EquiFirst Corp., 2022 NY Slip Op. 31953(U). In this decision, Justice Chan addresses a question left unanswered by the Court of Appeals in Deutsche Bank Natl. Trust Co. v. Barclays Bank PLC, in which it held that the statute of limitations for put-back claims brought by Deutsche Bank National Trust Co. was four years, because that was the statute of limitations for a breach of contract claim in California, where Deutsche Bank National Trust Co. is located. Continue reading Statute of Limitations for a Put-Back Action
On July 2, 2022, Justice Masley of the New York County Commercial Division issued a decision in Freedom Trust 2011-2 v. DB Structured Prods., Inc., 2022 NY Slip Op. 32096(U), dismissing a put-back brought by a certificateholder of an RMBS trust, with the trustee’s permission, against the trust’s sponsor because (1) the certificateholder lacked capacity under the trust’s no-action clause and (2) the claims were in any event time-barred. Continue reading RMBS Certificateholder Lacked Capacity to Sue Sponsor
On May 25, 2022, Justice Chan of the New York County Commercial Division issued a decision in Park Royal I LLC v. HSBC Bank USA, N.A., 2022 NY Slip Op. 31715(U), holding that a lack of a Cede & Co. authorization when an action was filed was a curable defect in standing and was not a basis for dismissal . . . Continue reading Lack of Cede & Co. Authorization to Sue is a Curable Defect in Standing Not Requiring Dismissal
On April 4, 2022, Justice Cohen of the New York County Commercial Division issued a decision in Freedom Trust 2011-2 v. HSBC, addressing the question of how long a tolling agreement can extend the time to bring a lawsuit . . . Continue reading GOL 17-103 Limits the Duration of Each Tolling Agreement, Not the Aggregate Amount of Tolling to Which Parties Can Agree
On May 2, 2022, Justice Borrok of the New York County Commercial Division issued a decision in Finkelstein v. U.S. Bank, denying U.S. Bank’s motion to dismiss in its entirety . . . Continue reading Court Denies Motion to Dismiss Document Defect Claims Against Trustee
On Tuesday, April 19, 2022, the Court of Appeals will hear argument in ACE Securities v. DB Structured Prods. (No. 34), APL-2020-126. Argument is scheduled to begin at 2:00 PM New York time and can be viewed on the Court of Appeals website. Continue reading Oral Argument in ACE Securities v. DB Structured Prods
On March 17, 2022, the Court of Appeals issued a decision in U.S. Bank Natl. Assn. v. DLJ Mtge. Capital, Inc., 2022 NY Slip Op. 01866, holding that an RMBS trustee cannot rely on the relation back doctrine to avoid a pooling and servicing agreement’s pre-suit demand requirement. Continue reading RMBS Trustee Cannot Avoid Pre-Suit Put-Back Demand Requirement
