Motion to Dismiss Granted in Part in J.P. Morgan and WMC RMBS Trust Suit

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On November 22, Justice Shirley Werner Kornreich of the Supreme Court of the State of New York partially dismissed a putback action brought by the trustee for the J.P. Morgan Mortgage Acquisition Trust 2006-WMC4 against J.P. Morgan Chase & Co. and WMC Mortgage. The court held that damages are available only as to loans that breached representations and warranties. The court rejected, however, JPMorgan’s argument that dismissal of certain breach claims was warranted by temporal limitations on the bank’s “bringdown” representations and warranties. The court also denied the motion to dismiss the plaintiff’s indemnification claim at the pleading stage. Decision.