On February 26, Judge Katherine B. Forrest of the U.S. District Court for the Southern District of New York denied U.S. Bank N.A.'s ("U.S. Bank") motion to dismiss claims for breach of contract and violation of the Trust Indenture Act ("TIA") with regard to the 27 trusts that remain before the Court after it previously declined to exercise supplemental jurisdiction over claims arising from an additional 810 trusts. Orrick covered that decision here. The Court dismissed plaintiffs' claims for breach of fiduciary duty and extra-contractual duties under the economic loss doctrine, but did not dismiss plaintiffs' TIA-based claim, holding that the statute provides plaintiffs with a private right of action. Judge Forrest also held that the Indentures' no-action clauses have no effect in suits against RMBS trustees, rejecting U.S. Bank's attempt to dismiss all claims against it on the basis of plaintiffs' non-compliance with those provisions. Opinion and Order.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
