New York Court Dismisses Insurer Claims In $1.8 Billion RMBS Suit

On February 28, 2012, New York State Supreme Court Judge Bernard J. Fried rejected an attempt by Syncora and CIFG Assurance to plead new claims against Greenpoint Mortgage Funding after their initial claims were dismissed in March of 2010.  The court held that the new claims, which were based on evidence, documents and knowledge that the insurers had during the initial suit, were barred by the doctrine of res judicata, which precludes relitigation of issues already decided.  The initial suit was filed by the insurers and U.S. Bank as trustee for over $1.8 billion.  Decision.