MBIA's Suit Against Patriarch Over CDOs Moves Ahead

Law360, New York (February 7, 2012, 4:12 PM EST) -- A New York federal judge on Monday declined to dismiss the bulk of a lawsuit against Patriarch Partners VIII LLC in which MBIA Insurance Corp. alleges the private equity firm breached its contract to help protect some troubled collateralized debt obligations insured by MBIA.

Patriarch had sought to dismiss the entire lawsuit, but U.S. District Court Judge Robert W. Sweet dismissed only one of the charges.

“Because New York law does not recognize a cause of action for breach of an implied covenant independent of a...
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