Authored by Aaron Rubin
On March 21, 2017, Judge George Daniels of the United States District Court for the Southern District of New York partially granted and partially denied defendant's motion to dismiss in Commerzbank AG v. The Bank of New York Mellon. With respect to the central breach of contract claims, Judge Daniels held that The Bank of New York Mellon ("BNYM") had not carried its burden for dismissal under applicable German law, as it had failed to prove that Commerzbank AG had sufficient knowledge of each element of each of its claims with respect to each Trust, "such that it could have commenced [the] action with an expectation, or some prospect, of success," three years prior to filing. The court also denied the BNYM's motion to dismiss for failure to state a claim with respect to Commerzbank's claims for breach of contract, and negligence for failure to avoid conflicts of interest. It granted BNYM's motion to dismiss Commerzbank AG's claims for the violation of the covenant of good faith, violation of the Streit Act, and breach of fiduciary duty. Memorandum Decision and Order.
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