You are here: / / PLAINTIFF’S LOSS WAS DUE TO THE MARKET COLLAPSE OF RESIDENTIAL-BACKED...
,

PLAINTIFF’S LOSS WAS DUE TO THE MARKET COLLAPSE OF RESIDENTIAL-BACKED MORTGAGE SECURITIES, LOSS CAUSATION ELEMENT OF FRAUD CAUSE OF ACTION THEREFORE NOT DEMONSTRATED.

The First Department, reversing Supreme Court, in a full-fledged opinion by Justice Kapnick, determined defendant TCW’s motion for summary judgment in this residential-backed mortgage securities (RBMS) fraud action should have been granted. TCW represented it could select less risky RBMS’s and plaintiff invested $27,000,000 . The market subsequently collapsed. The First Department found the proof of “loss causation” lacking:

” Loss causation is the causal link between the alleged misconduct and the economic harm ultimately suffered by the plaintiff'” … . To establish loss causation a plaintiff must prove that the ” subject of the fraudulent statement or omission was the cause of the actual loss suffered'” … . Moreover, ” when the plaintiff’s loss coincides with a marketwide phenomenon causing comparable losses to other investors, the prospect that the plaintiff’s loss was caused by the fraud decreases’, and a plaintiff’s claim fails when it has not . . . proven . . . that its loss was caused by the alleged misstatements as opposed to intervening events'” … . Indeed, when an investor suffers an investment loss due to a “market crash [] of such dramatic proportions that [the] losses would have occurred at the same time and to the same extent regardless of the alleged fraud,” loss causation is lacking … . Basis PAC-Rim Opportunity Fund (Master) v TCW Asset Mgt. Co., 2017 NY Slip Op 01644, 1st Dept 3-2-17

SECURITIES (PLAINTIFF’S LOSS WAS DUE TO THE MARKET COLLAPSE OF RESIDENTIAL-BACKED MORTGAGE SECURITIES, LOSS CAUSATION ELEMENT OF FRAUD CAUSE OF ACTION THEREFORE NOT DEMONSTRATED)/RESIDENTIAL-BACKED MORTGAGE SECURITIES (PLAINTIFF’S LOSS WAS DUE TO THE MARKET COLLAPSE OF RESIDENTIAL-BACKED MORTGAGE SECURITIES, LOSS CAUSATION ELEMENT OF FRAUD CAUSE OF ACTION THEREFORE NOT DEMONSTRATED)/FRAUD (RESIDENTIAL-BACKED MORTGAGE SECURITIES, PLAINTIFF’S LOSS WAS DUE TO THE MARKET COLLAPSE OF RESIDENTIAL-BACKED MORTGAGE SECURITIES, LOSS CAUSATION ELEMENT OF FRAUD CAUSE OF ACTION THEREFORE NOT DEMONSTRATED)/LOSS CAUSATION (FRAUD, RESIDENTIAL-BACKED MORTGAGE SECURITIES, PLAINTIFF’S LOSS WAS DUE TO THE MARKET COLLAPSE OF RESIDENTIAL-BACKED MORTGAGE SECURITIES, LOSS CAUSATION ELEMENT OF FRAUD CAUSE OF ACTION THEREFORE NOT DEMONSTRATED)

You might also like
SURROGATE’S COURT HAD JURISDICTION TO ISSUE ANCILLARY LETTERS ALLOWING THE NONDOMICILIARY HEIR OF THE OWNER OF A $25 MILLION PAINTING CONFISCATED BY THE NAZIS TO SUE TO RECOVER THE PAINTING.
2015 MOTION TO REINSTATE THE APPEAL OF A 1986 CONVICTION DENIED (FIRST DEPT).
NEW THEORY COULD NOT BE CONSIDERED IN RESPONSE TO DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT IN THIS MEDICAL MALPRACTICE ACTION, MOTION SHOULD HAVE BEEN GRANTED.
PLAINTIFFS’ MOTION TO RENEW ON THE GROUND THE DEFENDANTS’ WINNING ARGUMENT WAS RAISED FOR THE FIRST TIME IN REPLY PAPERS SHOULD HAVE BEEN GRANTED (FIRST DEPT). ​
BY NOT SEEKING THE FULL AMOUNT OF THE DEBT IN THE 90-DAY NOTICE PLAINTIFF MAY HAVE DE-ACCELERATED THE DEBT MAKING THE FORECLOSURE ACTION TIMELY (FIRST DEPT).
PLAINTIFFS’ EXPERTS RAISED ISSUES OF FACT REQUIRING DENIAL OF DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT IN THIS MEDICAL MALPRACTICE ACTION.
THE COURT SHOULD NOT HAVE DELEGATED TO MOTHER ITS AUTHORITY TO SET A VISITATION SCHEDULE FOR FATHER; FORENSIC MENTAL HEALTH EVALUATIONS AND COUNSELING MAY BE APPROPRIATE WHERE, AS HERE, A CHILD REFUSES VISITATION WITH A PARENT (FIRST DEPT).
MOTHER’S BOYFRIEND, WHO LIVED WITH MOTHER AND DAUGHTER FOR FIVE MONTHS BEFORE ABUSING THE DAUGHTER, MET THE CRITERIA FOR A “PERSON LEGALLY RESPONSIBLE FOR THE CHILD” AND WAS THEREFORE A PROPER PARTY IN THIS ABUSE/NEGLECT PROCEEDING; COMPREHENSIVE TWO-JUSTICE DISSENT (FIRST DEPT).

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2026 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

MINERAL RIGHTS INCLUDE THE RIGHT TO REMOVE SAND AND GRAVEL. PRESENCE OF POLICE OFFICERS AND OFFICER’S STATEMENT TO THE VICTIM DID...