IKB International v. Wells Fargo Bank

Summary

The Court of Appeals held that plaintiffs were not required to comply with the governing agreements’ no-action clauses before suing the trustees because demanding that the trustees sue themselves would have been futile. It further held that the agreements did not impose an affirmative pre-event-of-default duty on the trustees to enforce other parties’ repurchase obligations, requiring dismissal of those contract claims. The Court also held that the remaining tort claims were duplicative of the contract claims because they alleged the same duties, conduct, injuries, and damages.