BNP Paribas Contract Claim Over BoNY Trust Pay Survives

Law360, New York (March 29, 2012, 3:55 PM EDT) -- BNP Paribas can proceed with a contract claim against Bank of New York Trust Co. over allegations the trust didn't properly disburse insurance proceeds from lost loan principal tied to a $25 million mortgage pool investment, a New York federal judge ruled Wednesday.

But New York City federal judge Paul G. Gardephe cut the Paris-based banking giant's negligence and breach of fiduciary duty claims against the BoNY-owned trust, saying they were duplicative.

BNP Paribas' amended complaint, filed in May 2011, claims the BoNY trust failed to...
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