Appellate Division of the Supreme Court of New York, 2004

Asset Securitization Corp. v. Orix Capital Markets, LLC

Asset Securitization Corp. v. Orix Capital Markets, LLC
Appellate Division of the Supreme Court of New York · Decided November 9, 2004
12 A.D.3d 215; 784 N.Y.S.2d 513; 2004 N.Y. App. Div. LEXIS 13146
Asset Securitization Corp. v. Orix Capital Markets, LLC

Opinion of the Court

Judgment, Supreme Court, New York County (Richard B. Lowe, III, J.), entered April 28, 2004, which, upon the prior grant of defendant’s motion pursuant to CPLR 3211, dismissed the complaint, unanimously affirmed, with costs.

The governing Pooling Service Agreement (PSA), relating to a commercial mortgage-backed securities transaction in which plaintiff issued and sold Commercial Mortgage Pass-Through Certificates, does not authorize plaintiff to commence litigation on behalf of the certificateholders. That authority is committed solely to the trustee of the pooled loans, which is not a party to this action (see LaSalle Bank N.A. v Nomura Asset Capital Corp., 180 F Supp 2d 465, 471 [SD NY 2001]). Accordingly, since plaintiff is without standing under the PSA to sue on the certificateholders’ behalf and has failed to allege a valid contractual or extracontractual claim on its own behalf, we affirm the dismissal of the complaint. Concur—Sullivan, J.P., Ellerin, Williams, Gonzalez and Catterson, JJ.

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