7th Circ. Revives Row Over BNY Mellon's $312M Sentinel Claim

Law360, Los Angeles (August 27, 2013, 1:35 AM EDT) -- The Seventh Circuit on Monday revived a challenge to Bank of New York Mellon Corp.'s $312 million claim against bankrupt investment manager Sentinel Management Group Inc., saying the district judge had contradicted himself in his ruling in the bank’s favor.

The three-judge panel reversed U.S. District Judge James B. Zagel's ruling that BNY Mellon hadn’t acted unfairly in writing a loan collateralized by Sentinel’s customers’ money, reviving a challenge to the bank's claim by Sentinel's bankruptcy trustee.

The district court’s ruling was riddled with inconsistencies about...
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