Wells Fargo wins Second Circuit decision affirming summary judgment victory

Client(s) Wells Fargo Bank, National Association

A Second Circuit panel affirmed a grant of summary judgment dismissing claims against Jones Day's client Wells Fargo Bank, N.A. in a residential mortgage-backed securities ("RMBS") dispute. The plaintiff, a large German bank, sought more than $100 million in alleged losses tied to certificates issued by RMBS trusts for which Wells Fargo Bank, N.A. served as trustee. Following briefing and oral argument, the Second Circuit panel unanimously adopted Jones Day's positions, agreeing that the plaintiff could not pursue claims for the RMBS certificates that it sold before commencing the lawsuit, and that provisions in the RMBS trusts' governing agreements barred the plaintiff from pursuing claims for the remaining RMBS certificates.

The Second Circuit's affirmance resolved a nine-year litigation, during which Jones Day secured dismissal of several claims at the motion-to-dismiss stage, and secured dismissal of the remaining claims at the summary judgment stage.

Commerzbank AG v. Wells Fargo Bank, N.A., No. 22-1879 (2d Cir.)