Shearman & Sterling secured another victory for client Nomura Credit & Capital (“Nomura”) when New York Supreme Court Justice Marcy S. Friedman dismissed a lawsuit against Nomura brought by a residential mortgage-backed securities (“RMBS”) trust.
In a bench ruling after oral argument on Nomura’s motion to dismiss, Justice Friedman dismissed plaintiff’s entire complaint. Plaintiff was granted leave to refile on certain narrow grounds. First, the amended complaint may not include a separate group of loans, valued at more than $800 million and which plaintiff had attempted to inject into the complaint, because claims related to those loans are time barred. Second, plaintiff may not assert separate causes of action for breach of contract based on Nomura’s alleged failure to comply with contractual remedies. Agreeing with Nomura, Justice Friedman rejected plaintiff’s attempt to assert causes of action based on Nomura’s alleged failure to notify plaintiff of loans that breached representations and alleged failure to repurchase those loans. Third, Justice Friedman rejected plaintiff’s claim for advancement and reimbursement of legal expenses based on the indemnification provision of the contract at issue.
This represents the second time that Shearman & Sterling has achieved dismissal of this case, after a previous complaint was dismissed in federal court this past summer for lack of subject matter jurisdiction.