Morgan Lewis discusses N.Y. Court of Appeals Decision Resolving Statute of Limitations Accrual for Putback Claims

On June 11, New York State’s highest court, the Court of Appeals, rendered a highly anticipated decision in ACE Secs. Corp. v. DB Structured Prods., Inc., __ — __ (2015) (ACE Court of Appeals Decision). The decision resolves several issues related to the timeliness of claims for breaches of representations and warranties—or “putback” claims—in the context of residential mortgage-backed securities (RMBS) litigation. In rendering its decision, the court held that the statute of limitations for putback claims accrues at the time that the underlying representation or warranty regarding the loan was breached by the loan seller (in this … Read more