In MBIA Insurance Corp. v. Countrywide Home Loans, Inc., 2009 WL 2135167 (N.Y. Sup. Ct., New York County, July 8, 2009)(Westlaw subscription required to access Westlaw; stated "uncorrected opinion and not selected for official publication"), the New York Supreme (Trial) Court refused to Dismiss various Causes of Action alleged by MBIA concerning residential mortgage-backed security ("RMBS") transactions. One surviving Cause of Action, among others, pursued by MBIA is for alleged "breach of the implied covenant of good faith and fair dealing" by Countrywide Home.
The New York Court rejected the "sophisticated plaintiff" argument made by Countrywide against MBIA in this case, an argument we have recently heard so often from other financial institutions accused of participating in the Big Collapse.
In a later decision in this case involving discovery and disclosure issues, the same New York Trial Judge referred back to the authority of this "uncorrected opinion" in order to fully understand "the factual background of this matter". MBIA Insurance Corp. v. Countrywide Home Loans, Inc., 895 N.Y.S.2d 643, 645 (N.Y. Sup. Ct., New York County, January 14, 2010). (The author has attempted with great effort and not much success to obtain Official or any other freely available online copies of these decisions to share with you. If you know how to find such, or have a copy or copies, please kindly forward it or them to me and I will add it or them in a postscript to this post. Thank you.)
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