On July 10, 2015, Judge Denise Cote of the Southern District of
New York granted partial summary judgment in favor of defendants
WMC Mortgage LLC and GE Mortgage Holding LLC in an action filed by
Trustee Bank of New York Mellon ("BoNY") in connection
with the sale of over $900 Million in RMBS. Judge Cote dismissed
BoNY's failure to repurchase claim against WMC, citing ACE
v. DB Structured Products, which held that a failure to
repurchase claim is not a separately enforceable right that gives
rise to a separate breach of contract claim independent of a claim
for breach of representations and warranties. Judge Cote also
dismissed BoNY's indemnification claims against both defendants
as duplicative of BoNY's claim for breach of the
representations and warranties in the Mortgage Loan Purchase
Agreements ("MLPAs"). BoNY's primary claim, for
breach of representations and warranties, was not a subject of the
motion for partial summary judgment. Opinion and Order.
