Commercial Division Blog
First Department Endorses Sampling in RMBS Put-Back Litigation
On January 16, 2020, the First Department issued a decision in Ambac Assur. Corp. v. Countrywide Home Loans Inc., 2020 NY Slip Op. 00367, endorsing the use of sampling in RMBS put-back litigation, explaining:
The court correctly denied the motion to preclude Ambac from using statistical sampling to prove its breach of contract claims in terms of both liability and damages. While the motion was not procedurally barred, we find that despite the language of the repurchase protocol, RMBS plaintiffs like Ambac are entitled to introduce sampling-related evidence to prove liability and damages in connection with repurchase claims.
(Internal citations omitted).
Schlam Stone & Dolan represents investors in RMBS actions against underwriters and trustees and in related proceedings, such as trust instruction proceedings where an RMBS trustee seeks court guidance regarding the management of an RMBS trust. If you or a client are RMBS investors and have questions regarding potential claims against a trustee or how to influence the trustee's prosecution of a put back or repurchase action like the one at issue here, contact Schlam Stone & Dolan partner John Lundin at email@example.com.