Cleveland Asks High Court To Hear Subprime Suit

Law360, New York (January 20, 2011, 7:17 PM EST) -- The city of Cleveland has taken its crusade to recover millions of dollars from Wall Street banks for its devastating tide of foreclosures to the U.S. Supreme Court, asking for review of an appellate decision in favor of more than 20 subprime lenders.

The city asked in a petition for writ of certiorari filed Jan. 12 to what extent a federal court sitting in diversity can predict governing state law on the basis of federal precedent that construes federal law.

The petition centers on federal courts'...
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