|Brune & Richard Wins|
Brune & Richard Trial Victory: Judge Sweet Rejects MBIA’s Claim to $120 Million CDO Note
New York, NY (June 11, 2013) -In a lengthy opinion yesterday resolving a 14-day bench trial, Judge Sweet rejected claims by bond insurer MBIA that Patriarch Partners, a private equity firm, was liable for over $120 million in damages for allegedly breaching a complex contract related to a 2003 CDO transaction. Patriarch had agreed, under certain conditions, to use up to $120 million of a CDO note to help reduce MBIA’s insurance exposure on certain MBIA-insured structured finance deals. Judge Sweet ruled that Patriarch’s obligations had not come due under the contract, and entered judgment in Patriarch’s favor. Hillary Richard of Brune & Richard was lead trial counsel for Patriarch.