Morgan Stanley Topples Loan Sale Suit In 7th Circ.

Law360, Chicago (June 11, 2012, 5:43 PM EDT) -- The Seventh Circuit ruled Monday that Morgan Stanley Mortgage Capital Holdings LLC did not breach contracts or commit conversion when it sold a loan tied to Indianapolis real estate to a man later convicted of fraud who sent the property into foreclosure.

In the appeal brought by investors in the property, the three-judge panel held that an Indiana federal court properly granted Morgan Stanley summary judgment because the documents tied to its refinancing of the loan did not bar it from offsetting the loan's purchase price...
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