Second Circuit Affirms Judgment in Favor of Kasowitz Clients in Structured Credit Interpleader Action

Second Circuit Affirms Judgment in Favor of Kasowitz Clients in Structured Credit Interpleader Action

Yesterday, the Second Circuit Court of Appeals affirmed a May 2014 ruling by U.S. District Judge Shira A. Scheindlin granting judgment in favor of Kasowitz clients the DWS Parties, stakeholders in an $800 million CMBS trust administered by Wells Fargo. At issue in the case was rival stakeholder Bedford CMBS Acquisitions LLC’s attempt to exercise a purported option to purchase 24 defaulted real estate securities from the trust. In a case involving the proper interpretation of complex contract language, the Second Circuit panel agreed with Kasowitz that the “plain language of the Pooling Agreement forecloses [Bedford’s] argument” that it had a purchase option available to exercise, and that Bedford “put the cart before the horse by presuming that a valid option exists.” 

The Kasowitz team representing the DWS Parties includes partner Michael Hanin.