Trust for the Certificate Holders of the Merrill Lynch Mortgage Investors, Inc. Mortgage Pass-Through Certificates…

Summary

The New York Court of Appeals held that a corporation or association that takes an assignment of a claim does not violate Judiciary Law § 489(1) when its purpose is to collect damages on a debt instrument in which it already holds a proprietary interest. It answered the certified questions, concluding that the Trust’s acquisition of the Love MLPA rights was not champerty, and that acquiring indemnification rights for past litigation costs or a potential larger recovery does not constitute champerty. The Court declined to answer the first certified question regarding “sole” versus “primary” intent.