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, explaining:
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First Department Clarifies Limits of Champerty Claims
By John Lundin
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, explaining:
The doctrine of champerty is codified in New York within…
In RMBS Put-Pack Action, Court Leaves Open Possibility of Post-Suit Notice of Breaches
By John Lundin
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…
RMBS Failure to Notify Claims Survive, But Only Within a Narrow Window
By John Lundin
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,…
Court RMBS Loan Servicer’s Claim for Lost Profit Damages Arising from Seller’s Failure to Give Notice of Document Defects
By John Lundin
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…
Where Servicer and Originator Were the Same, Originator’s Failure to Cure Defective Loans Constituted Servicer Failure to Perform Event of Default
By John Lundin
On September 21, 2023, Judge Engelmayer of the S.D.N.Y, issued a decision in Ambac Assurance Corporation v. U.S. Bank, 17 Civ. 2614 (PAE) (KHP), holding that where the servicer and originator were the same, the originator’s failure to cure…
Court Dismisses Claim Against Servicer for Failing to Give Notice of Representation and Warranty Breaches Because Originator Would Have Ignored Any Demand Made on It
By John Lundin
On September 19, 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. 33252(U), dismissing a claim against Ocwen for failing…
Court Rejects Champerty Defense Where Plaintiffs Had Purchased Defaulted Bonds with the Intention of Suing to Collect on Them
By John Lundin
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…
No-Action Clause Cannot Bar Claim Against RMBS Trustee
By John Lundin
On June 15, 2023, the Court of Appeals issued a decision in IKB Intl., S.A. v. Wells Fargo Bank, N.A., 2023 NY Slip Op. 03302, holding that a no-action clause cannot bar a claim against an RMBS trustee, explaining:…
First Department Issues New Decision Relating to Claims Against RMBS Trustees
By John Lundin
On March 30, 2023, the First Department issued a decision in MLRN LLC v. U.S. Bank, N.A., 2023 NY Slip Op. 01748, deciding several issues relating to investor claims against RMBS trustees.
Among the court’s holdings were:
- “[P]laintiff has
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