Calif. Court Strikes 8 Affirmative Defenses in Mortgage Reinsurance Kickback Case

SACRAMENTO, Calif. — A California federal magistrate judge has struck eight of the 26 affirmative defenses asserted by PHH Corp. and Atrium Reinsurance Co. in a suit accusing them of entering into fraudulent mortgage reinsurance arrangements for the purpose of receiving kickbacks.

Magistrate Judge Barbara McAuliffe of the U.S. District Court for the Eastern District of California ruled that the law of the case doctrine forecloses five of defendants’ affirmative defenses and that the remaining three defenses were inadequately pleaded. The magistrate judge allowed PHH and Atrium to amend the remaining three defenses, however.

In June 2008, a group of …