Statute of Limitations for a Put-Back Action

Statute of Limitations for a Put-Back Action

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

RMBS Certificateholder Lacked Capacity to Sue Sponsor

RMBS Certificateholder Lacked Capacity to Sue Sponsor

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

Lack of Cede & Co. Authorization to Sue is a Curable Defect in Standing Not Requiring Dismissal

Lack of Cede & Co. Authorization to Sue is a Curable Defect in Standing Not Requiring Dismissal

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