ResCap Suit Over Mortgage Servicing Deal Tossed In NY

Law360, New York (July 31, 2013, 2:27 PM EDT) -- A New York bankruptcy judge on Tuesday tossed a lawsuit brought by American Residential Equities LLC, trustee for purchasers of residential mortgage loans, accusing a Residential Capital LLC unit of failing to pay up under a servicing agreement, thus allowing the dispute to be handled in Florida.

U.S. Bankruptcy Judge Martin Glenn said in a written opinion that he will lift the automatic stay so that ARE’s separate lawsuit alleging similar claims in Florida federal court, which was already far along by the time ResCap entered...
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