Mortgage-Backed Securities Action Against Deutsche Bank Unit not Time-Barred, N.Y. Judge Rules

NEW YORK — A breach of contract suit brought against a unit of Deutsche Bank AG by the trustee of a pool of mortgage loans is not time-barred under New York law because the contract was "continuing performance," therefore each alleged breach triggered the statute of limitations anew, a New York state judge has ruled.

On May 13, Judge Shirley W. Kornreich of the New York County Supreme Court found the trustee’s claims did not accrue until defendant DB Structured Products Inc. allegedly breached its obligation to repurchase the affected loans.

DBSP purchased non-conforming loans which it then sold to …