News & Events

Litigation Partner David Woll and the Simpson Thacher team won a closely-watched appeal in the New York Court of Appeals on behalf of DB Structured Products, Inc. (“DBSP”).  In Ace Securities Corp, Home Loan Equity Loan Trust, Series 2006-SL2 v. DBSP, the Court of Appeals affirmed a unanimous ruling by the Appellate Division, First Department, dismissing as time-barred a suit alleging breaches of representations and warranties with respect to several hundred millions of dollars in mortgage loans.  In so holding, the Court of Appeals rejected appellant’s arguments, which would have had the effect of extending the limitations period for claims alleging breaches of  contractual representations and warranties indefinitely, and determined that such claims accrue on the date the representations and warranties are made and are subject to a six-year limitations period.

The Court of Appeals’ decision could have significant implications for other RMBS transactions by precluding repurchase claims that were not commenced within six years of the closing of those transactions.

Other members of the Simpson Thacher team for this case included Tom Rice, Isaac Rethy, John Robinson, Shannon McGovern, Nathan Sanders and Jason Gumer (Litigation).