UBS Real Estate Securities Wins Dismissal of RMBS Action

Skadden secured a dismissal for UBS Real Estate Securities Inc. (UBS RESI) in a breach-of-contract action pending in the New York State Supreme Court, Commercial Division. The plaintiff, U.S. Bank National Association, brought suit on behalf of a residential mortgage-backed securities (RMBS) trust, alleging that UBS RESI breached certain representations and warranties relating to the mortgage loans underlying the trust. On July 27, Justice Marcy Friedman dismissed the action, agreeing with our position that U.S. Bank's complaint was barred by the statute of limitations and could not relate back to an earlier summons by the Federal Housing Finance Agency (FHFA) because FHFA lacked standing to commence litigation under the governing contract.