On May 22, 2015, Judge Denise Cote of the United States District
Court for the Southern District of New York denied defendants WMC
Mortgage, LLC and GE Mortgage Holding, L.L.C.'s motion for
partial summary judgment to dismiss certain loan repurchase claims
asserted by Bank of NewYork Mellon in its capacity as RMBS Trustee
for GE-WMC Mortgage Securities Trust 2006-I. Defendants
argued that because certain loans in the trust had been
foreclosed-upon and liquidated, the terms of the operative Pooling
and Service Agreement barred recovery. Judge Cote rejected
this argument. Following New York State courts construing
prevailing New York law, Judge Cote held that money damages could
be awarded in lieu of the PSA's "sole remedy" of loan
repurchase for a breaching loan where the granting of equitable
relief appears to be impossible or impracticable. The court
held that the liquidation of a breaching loan presents such a
circumstance, and permitted Bank of New York Mellon's
