O'Melveny Must Face Mortgage Co.'s Sale Contract Suit

Law360, New York (November 7, 2012, 10:13 PM EST) -- A California appeals court on Wednesday revived Forecast Mortgage Corp.'s suit against O'Melveny & Myers LLP over its alleged failure to include a provision in a sales contract obligating K. Hovnanian Enterprises to certain liabilities.

A three-judge panel reversed a trial court's judgment that sustained O'Melveny's demurrer, holding that the sham pleading doctrine did not apply to this case despite Forecast's earlier allegations in a separate suit against the homebuilder claiming it was obligated to certain liabilities under the “plain language” of the contract.

The doctrine...
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