Firm Obtains Court Ruling Sustaining Phoenix Light’s Claims Against The Bank of New York Mellon
September 29, 2015
On September 29, 2015, the Firm prevailed on a motion to dismiss filed by The Bank of New York Mellon (“BNYM”) seeking dismissal of an action filed by the Firm’s client Phoenix Light SF Limited (“Phoenix Light”). Phoenix Light is asserting claims for losses suffered in connection with certificates issued by 27 residential mortgage-backed securities trusts. The complaint alleges that BNYM breached its duties by failing to provide notice of defaults under the trusts’ governing agreements, failing to take steps to address events of default that occurred as a result of servicers’ failure to meet prudent servings standards in servicing the mortgage loans, and neglecting to report its knowledge of defective loans, which would have caused the sponsors and originators to repurchase the non-compliant loans.
A copy of the opinion is available here.