On June 13, Justice Charles E. Ramos of the Supreme Court of the State of New York dismissed in part an action brought by Ambac Assurance Corp. (Ambac) against EMC Mortgage and JPMorgan Chase & Co. Ambac’s case relates to seven securitizations that it wrapped in 2006. Justice Ramos dismissed Ambac’s claims for breach of contract, holding that Ambac did not have standing to enforce the “sole remedy” of loan repurchase provided for by the transaction documents. Justice Ramos denied defendants’ motion to dismiss Ambac’s fraud claim, concluding that there are factual issues as to whether Ambac justifiably relied on the alleged misrepresentations. Decision.
