On March 20, the Appellate Division, First Department denied an RMBS trustee’s motion for reargument of or, alternatively, leave to appeal to the Court of Appeals (New York’s highest court) from the First Department’s December 19, 2013 Decision and Order dismissing the trustee’s mortgage loan repurchase action against DB Structured Products as time barred. As described in the January 6 edition of the Week in Review, the First Department’s order held that repurchase claims arising from alleged breaches of representations and warranties concerning mortgage loans accrue when the representations and warranties allegedly were breached, and not on the later date when a defendant refuses to repurchase a loan. The trustee’s complaint was untimely because it was not filed within six years of the alleged breach and did not relate back to an earlier complaint filed by certificate holders that lacked standing to sue. The trustee now has thirty days to seek leave directly from the Court of Appeals to appeal to that court. Order.
