UBS Unit Can't Nix Trusts' Mortgage Loan Buy-Back Suit

Law360, New York (August 15, 2013, 4:27 PM EDT) -- A New York federal judge on Thursday refused to throw out a suit brought by trusts accusing a UBS AG unit of reneging on a deal to buy back certain residential mortgage loans it sold for securitization purposes, finding the trusts’ bid for damages doesn’t doom the case.

UBS had argued the suit should be tossed since the mortgage trusts are improperly seeking monetary damages, relief that is barred by contract provisions that limit any remedy to UBS repurchasing the mortgages at issue.

U.S. District Judge...
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