Triad Can't Fight AHM Coverage In Bankruptcy Court

Law360, Wilmington (August 28, 2012, 10:38 PM EDT) -- A Delaware bankruptcy judge on Monday tossed a putative class action by Triad Guaranty Insurance Corp., which had sought to cancel its obligations to current holders of loans originated by now-reorganized American Home Mortgage Holdings Inc., ruling the court lacked subject matter jurisdiction.

U.S. Bankruptcy Judge Christopher S. Sontchi ruled the court could not exercise jurisdiction as Triad had not shown the suit had any relevant connection to the remaining case. The complaint had been filed as an adversary proceeding to AHM's bankruptcy only after its...
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