Justice Marcy Friedman
Actions arose out of a failed transaction for securitization of collateralized loan obligations. Plaintiffs UBS Securities LLC and UBS AG, London Branch (UBS), sued defendants Highland Capital Management LP and various affiliated entities for nearly $700 million in damages that UBS allegedly sustained as a result of diminution in the market value of investments held by UBS in a collateralized debt facility. UBS brought breach of contract and fraudulent inducement claims against certain of the Highland defendants, in addition to fraudulent conveyance claims against all of the Highland defendants. As this action is one for money damages based on breach of contract and fraud and does not involve a claim to a specific fund, the court had to determine the issue of whether UBS may obtain injunctive relief independent of CPLR 6301 and, in particular, under Debtor and Creditor Law 279, which authorizes a creditor that has not yet obtained a judgment to seek injunctive relief against fraudulent conveyances. The court denied UBS’ motion, determining that a preliminary injunction is not available under Debtor and Creditor Law 279, as UBS has no equitable interest in the specific assets since the object of UBS’ action is money damages.
