RMBS Trustees Defeat Motion For Class Certification In California State Court

On May 30, 2018, Judge Ronald L. Bauer of the Superior Court of the State of California, County of Orange denied investor Plaintiffs' (led by BlackRock Balanced Capital Portfolio (FI)) Motion for Class Certification and Appointment of Class Representative and Class Counsel in an action alleging breach of contract against RMBS Trustees Deutsche Bank National Trust Company and Deutsche Bank Trust Company Americas. Ruling from the bench, Judge Bauer based his decision on the difficulties Plaintiffs would face in "presenting evidence of causation and damages" in a class action without making an individualized showing. He further noted that the analysis would be "intensely factually oriented" and would require reviewing "an enormous number of detailed transactions." Judge Bauer also referred to the issues of standing, statute of limitations, and choice of law in the case as "impossible" to pursue in a class action. Order.