Panel Holds Insurer to Higher Proof Standard in Fraud Suit
An insurer who underwrote mortgage-backed securities that failed during the 2008 housing crisis must prove all the elements of common-law fraud in its suit against Countrywide Home Loans, a Manhattan appeals court has ruled. "There is no merit to Ambac's contention that Insurance Law §3105 dispenses with the common-law requirement of proving justifiable reliance and loss causation," Justice Richter wrote for the panel.
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