S.D.N.Y. Denies Motion for Sampling in Trustee Action

 

On May 17, 2018, Judge Jesse M. Furman of the United States District Court for the Southern District of New York denied the BlackRock Plaintiffs’ request to use sampling to prove their case against an RMBS trustee in BlackRock Balanced Capital Portfolio (FI) v. Deutsche Bank National Trust Company. In reaching this conclusion, Judge Furman noted that his decision was consistent with those reached by other S.D.N.Y. judges in similar actions against RMBS trustees Wells Fargo and HSBC (previously covered here and here). Echoing those decisions, Judge Furman held that sampling was of limited benefit because the BlackRock Plaintiffs had to prove liability and damages loan-by-loan and trust-by-trust. Memorandum Opinion & Order