Stonehill v. Bank of the West: Court Rules in Favor of Position Espoused by LSTA Amicus Brief

December 21, 2016 - LSTA is pleased to report that a case in which we filed an amicus brief, Stonehill v. Bank of the West, the Court of Appeals of New York, the state’s highest court, ruled unanimously in favor of Stonehill, the party we supported.  A link to the decision appears here

As you may recall, the case involved whether a loan sold at auction but subject to LSTA documentation constituted an enforceable sales contract.  The court ruled that he trade was binding and that a loan asset could not be withdrawn. 

The ruling from the Court of Appeals granted summary judgment to Stonehill and is not subject to appeal. 

The LSTA’s amicus brief was favorably mentioned during oral arguments and appears to have been persuasive to the Court.  We think this is a big win for the loan market and confirms the position the LSTA has espoused and the market has adopted for over 20 years.  Elliot led this effort for the LSTA. 

Please see the short attached memo from Richards Kibbe & Orbe, who represented the LSTA on the amicus brief.

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