LandAmerica Trustee Sues To Erase PE Firm's $10M Claim

Law360, New York (May 16, 2013, 2:34 PM EDT) -- Bankrupt title insurer LandAmerica Financial Group asked a Virginia bankruptcy court Wednesday to toss a $10 million claim brought by American Capital Ltd. accusing a company subsidiary of failing to catch defects in two apartment complexes secured by loans in a risky mortgage-backed investment vehicle.

LandAmerica’s trustee Bruce H. Matson asked the court to disallow American capital’s $10.2 million damages claims resulting from its alleged failure to properly assess two Texas apartment complexes on behalf of Wachovia Bank NA.

American Capital, which invested in a Wachovia...
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