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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!