On March 20, Judge Alison J. Nathan of the United States
District Court for the Southern District of New York granted in
part and denied in part DB Structured Products, Inc.'s, (DBSP)
motions to dismiss four lawsuits brought by HSBC Bank as trustee of
four different residential mortgage securitization trusts.
The court dismissed the trustee's claims for a declaration that
DBSP is required to reimburse the trustee for expenses incurred in
enforcing its remedies under the relevant contracts, including
costs and attorney's fees, on the basis that the trustee could
seek such reimbursement without the need for declaratory
relief. The court denied DBSP's motion to dismiss the
trustee's breach of contract claims for failure to comply with
the contractual requirements for a demand to repurchase allegedly
breaching loans, holding that DBSP's discovery of breaches of
representations and warranties was adequately pleaded and provided
a sufficient basis for the claims to proceed
