New York State Court Allows Trustee Lawsuit Against DB Structured Products to Proceed

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On May 13, Justice Kornreich of the Supreme Court of the State of New York denied DB Structured Products, Inc.’s (DBSP) motion to dismiss an RMBS putback action brought against it by the trustee for the relevant RMBS trust. The plaintiff alleged that DBSP breached representations and warranties concerning the mortgage loans backing the trust and then failed to fulfill its contractual obligation to repurchase those loans. Justice Kornreich held that plaintiff’s claims were timely because each alleged failure by DBSP to comply with its recurring repurchase obligation constituted an independent contractual breach that re-started the statute of limitations. Order.

Topics:  RMBS, Statute of Limitations, Structured Financial Products, Trustees

Published In: Civil Procedure Updates, General Business Updates, Finance & Banking Updates, Securities Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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