MBIA cannot bring claims for negligent misrepresentation or breach of good faith and fair dealing in a lawsuit against defunct mortgage lender Countrywide Financial, which it accuses of misrepresenting the safety of mortgage-backed securities that MBIA insured.
In MBIA v. Countrywide Home Loans, 602825/08, an Appellate Division, First Department, panel unanimously affirmed yesterday a lower court’s dismissal of a count of negligent misrepresentation while dismissing a claim for breach of good faith and fair dealing that the lower court had allowed to stand. The panel also affirmed the lower court’s decision not to dismiss a claim for fraud, now the only claim left in the suit.
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