All new cases in Manhattan alleging fraud or misrepresentation arising out of the creation or sale of residential mortgage-backed securities are now being assigned to Commercial Division Justice Marcy Friedman (See Profile). A May 23 order signed by Supreme Court Justice Sherry Klein Heitler (See Profile), the administrative judge of the civil term, says the new policy will promote "efficiency and the avoidance of inconsistent rulings."
The order codifies a practice that began last year after Friedman joined the Commercial Division. According to Heitler’s order, it is consistent with her intention reflected in three orders reassigning individual RMBS cases to Friedman from other judges. "I felt that I saw a group of these cases coming in and because they had related issues, it would be best to send them to one judge," Heitler said.
