New York State Court of Appeals Affirms Dismissal of A $45 Million Fraud Action Against Title Insurance Underwriter

A purchaser of mortgages sued our client, a title insurance underwriter, for alleged fraud relating to the sale of those mortgages on the secondary market.  The Plaintiff sought recovery of $45 million in damages.  Following the Supreme Court’s denial of a motion to dismiss, Lee S. Wiederkehr and Michael J. Schwarz obtained an order from the Appellate Division, First Department, reversing the trial court’s decision, and granting the motion to dismiss.  Leave to appeal to the Court of Appeals was granted, and the New York State Court of Appeals unanimously affirmed the Appellate Division’s dismissal of the action against our client. See DLJ Mortgage Capital, Inc. v. Kontogiannis, 102 A.D.3d 489 (1st Dept. 2013), aff’d — N.Y.2d —, 2013 WL 6008737 (2013).