News
LLF Prevails on Appeal: First Department Affirms Dismissal of Bad Faith Margin Call Claim
On October 14, 2010, LLF prevailed on appeal in the Appellate Division, First Department, in a case brought by two municipal bond hedge funds against LLF's client, a money center investment bank. The hedge funds claimed that certain margin calls issued by the bank violated the implied covenant of good faith and fair dealing.
In the decision, the Court upheld the trial court's dismissal of the plaintiff's claim upon LLF's motion to dismiss. The Appellate Division held that the claim was properly dismissed because the plaintiffs sued under a contract that did not govern the transactions at issue, and also that the complaint did not allege conduct constituting "bad faith" by the defendant.
Levi Lubarsky & Feigenbaum llp