On November 24, Justice Marcy Friedman of the Supreme Court for the State of New York partially dismissed U.S. Bank's suit against sponsor Morgan Stanley Mortgage Capital and originator Greenpoint Mortgage Funding in connection with Morgan Stanley Mortgage Loan Trust 2007-2AX. Referencing previous decisions made by the court in similar cases, Justice Friedman dismissed the trustee's claim for rescissory damages under the sole remedy provisions in the relevant agreements. The court denied Morgan Stanley's motion to dismiss based on standing, held the case was timely brought based on the closing date of the transaction, and declined to dismiss claims concerning liquidated loans or claims based on alleged independent discovery of breaches. Decision.
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