On October 27, 2015, Justice Eileen Bransten of the New York
Supreme Court issued a Decision and Order granting in part and
denying in part cross motions for summary judgment brought by
Countrywide and Ambac in an RMBS action brought by Ambac against
Countrywide. Justice Bransten's order addressed numerous
issues, including the following.
Justice Bransten held that Insurance Law §3105 does not
require Ambac to prove justifiable reliance on an alleged
misrepresentation or that the misrepresentation proximately caused
Ambac's harm, but instead only that there was a
misrepresentation and that it was material. Justice Bransten also
concluded that the contractual repurchase remedy will not be the
sole remedy available to Ambac if it can prove breaches of other
sections of the Insurance & Indemnity Agreements at trial.
Justice Bransten declined to dismiss on timeliness grounds
Ambac's claims with respect to loans that were not the subject
of repurchase demands within six
