Morgan Stanley 2014 Annual Report Download - page 47

On September 28, 2012, U.S. Bank, in its capacity as Trustee, filed a complaint on behalf of Morgan Stanley
Mortgage Loan Trust 2006-13ARX against the Company styled Morgan Stanley Mortgage Loan Trust 2006-
13ARX v. Morgan Stanley Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage
Capital Inc., pending in the Supreme Court of NY. U.S. Bank filed an amended complaint on January 17, 2013,
which asserts claims for breach of contract and alleges, among other things, that the loans in the trust, which had
an original principal balance of approximately $609 million, breached various representations and warranties.
The amended complaint seeks, among other relief, declaratory judgment relief, specific performance and
unspecified damages and interest. On September 30, 2014, the court granted in part and denied in part the
Company’s motion to dismiss the amended complaint. On November 7, 2014, plaintiff filed a notice of appeal
from the court’s September 30, 2014 decision.
On December 14, 2012, Royal Park Investments SA/NV filed a complaint against the Company, certain
affiliates, and other defendants in the Supreme Court of NY, styled Royal Park Investments SA/NV v. Merrill
Lynch et al. The complaint alleges that defendants made material misrepresentations and omissions in the sale to
plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential
mortgage loans totaling approximately $628 million. On October 24, 2013, plaintiff filed a new complaint
against the Company in the Supreme Court of NY, styled Royal Park Investments SA/NV v. Morgan Stanley et al.
The new complaint alleges that defendants made material misrepresentations and omissions in the sale to
plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential
mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Company
to plaintiff was approximately $597 million. The complaint raises common law claims of fraud, fraudulent
inducement, negligent misrepresentation, and aiding and abetting fraud and seeks, among other things,
compensatory and punitive damages. On February 3, 2014, the Company filed a motion to dismiss the complaint.
On January 10, 2013, U.S. Bank, in its capacity as Trustee, filed a complaint on behalf of Morgan Stanley
Mortgage Loan Trust 2006-10SL and Mortgage Pass-Through Certificates, Series 2006-10SL against the
Company. The complaint is styled Morgan Stanley Mortgage Loan Trust 2006-10SL, et al. v. Morgan Stanley
Mortgage Capital Holdings LLC, as successor in interest to Morgan Stanley Mortgage Capital Inc. and is
pending in the Supreme Court of NY. The complaint asserts claims for breach of contract and alleges, among
other things, that the loans in the trust, which had an original principal balance of approximately $300 million,
breached various representations and warranties. The complaint seeks, among other relief, an order requiring the
Company to comply with the loan breach remedy procedures in the transaction documents, unspecified damages,
and interest. On August 8, 2014, the court granted in part and denied in part the Company’s motion to dismiss the
complaint.
On January 31, 2013, HSH Nordbank AG and certain affiliates filed a complaint against the Company, certain
affiliates, and other defendants in the Supreme Court of NY, styled HSH Nordbank AG et al. v. Morgan Stanley
et al. The complaint alleges that defendants made material misrepresentations and omissions in the sale to
plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential
mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by the Company
to plaintiff was approximately $524 million. The complaint alleges causes of action against the Company for
common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misrepresentation, and
rescission and seeks, among other things, compensatory and punitive damages. On April 12, 2013, defendants
filed a motion to dismiss the complaint.
On February 14, 2013, Bank Hapoalim B.M. filed a complaint against the Company and certain affiliates in the
Supreme Court of NY, styled Bank Hapoalim B.M. v. Morgan Stanley et al. The complaint alleges that
defendants made material misrepresentations and omissions in the sale to plaintiff of certain mortgage pass-
through certificates backed by securitization trusts containing residential mortgage loans. The total amount of
certificates allegedly sponsored, underwritten and/or sold by the Company to plaintiff was approximately $141
million. The complaint alleges causes of action against the Company for common law fraud, fraudulent
concealment, aiding and abetting fraud, and negligent misrepresentation, and seeks, among other things,
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