Reversing his own prior ruling, a Delaware judge has breathed new life into a breach of contract lawsuit against EMC Mortgage LLC and JPMorgan Chase Bank NA, which serviced $500 million in mortgages that now-defunct Bear Stearns bundled into securities and sold to investors.
Vice Chancellor J. Travis Laster of Delaware Chancery Court ruled Monday that U.S. Bank NA and its lawyers at Quinn Emanuel Urquhart & Sullivan didn’t miss their deadline to bring claims against EMC and JPMorgan. U.S. Bank—the trustee of what was once a $501 million mortgage-backed trust created by Bear Stearns—accuses EMC and JPMorgan of breaching a purchase agreement that required them to buy back shoddy mortgages.
