2nd Circ. Holds JPMorgan To Faulty Mayer Brown Loan Deal
By Andrew Scurria (January 21, 2015, 11:08 AM EST) -- The Second Circuit on Wednesday invalidated JPMorgan Chase & Co.'s security interest on a $1.5 billion loan to General Motors Corp.'s bankrupt predecessor, enforcing mistaken paperwork filed by Mayer Brown LLP that the bank and its attorneys at Simpson Thacher & Bartlett LLP failed to catch.
The appeals court's unanimous decision follows an October directive from the Delaware Supreme Court that the act of filing a so-called UCC-3 form relinquishing a lien sufficed to terminate JPMorgan's security interest, no matter that the bank never intended to do anything of the sort.
In so ruling, the Second Circuit placed the loan on...
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