A team of lawyers led by BSF partners Robin A. Henry and Motty Shulman have secured another significant victory in their continuing representation of BNP Paribas in its suit against Bank of America. BNP Paribas has alleged that Bank of America failed in its duty to safeguard more than $480.7 million of cash and mortgages securing BNP Paribas’s investment in Ocala Funding, LLC, a mortgage warehousing facility.
Bank of America attempted to shift blame for BNP Paribas’s loss to the securities unit of BNP Paribas; this complaint was wholly dismissed in a 39-page opinion by Judge Robert W. Sweet of the U.S. District Court in Manhattan on June 5, 2012. The Court also granted BNP Paribas permission to expand its existing lawsuit -- already in discovery -- to pursue additional claims against Bank of America for its role in the loss of collateral intended to secure BNP Paribas’ investment.