On May 16, 2018, Justice Shirley W. Kornreich of the New York Supreme Court granted in part and denied in part the parties’ summary judgment motions in Merrill Lynch Mortgage Investors Trust Series 2006-RM4 v. Merrill Lynch Mortgage Lending, Inc. Defendants Merrill Lynch Mortgage Lending, Inc. (“Merrill“) and Bank of America National Association (“BANA“) and Plaintiff-Trustee U.S. Bank National Association (“Trustee“) cross-moved for partial summary judgment regarding the scope and enforceability of an allocation agreement between Merrill and BANA and certain provisions therein about the release of Merrill’s contractual liability to the Trustee (the “Release”). Justice Kornreich granted summary judgment for Defendants with respect to the Release language being unambiguous but denied summary judgment as to its enforceability. Justice Kornreich concluded that material questions of fact exist as to whether Merrill’s and BANA’s negotiation and execution of the Release was a true arm’s length transaction and whether the Release was unconscionable. Justice Kornreich also denied the Trustee’s motion for a ruling that Merrill provided a backstop to originator ResMAE Mortgage Corporation’s putback liability. The Court granted summary judgment to the Trustee regarding the meaning of certain sections of the mortgage loan purchase agreement, the existence of warranty breaches on certain loans, and Defendants’ causation defenses. In addition, Justice Kornreich granted the Trustee’s motion for leave to amend to add a “breach of trust” cause of action against BANA. Decision & Order