Syncora Holdings Ltd. (fka SYCRF)

[DennyCrane550]

New filing in MacQuarie case:

a REMITTITUR.... recall we had that filing end of 2017 just Before GREENPOINT settlement ~

BY DOC # DATE DOCUMENT FILED DOCUMENT DESCRIPTION MOTION #
1 658 2018-10-10
REMITTITUR
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http://iapps.courts.state.ny.us/iscroll/SQLData.jsp?IndexNo=651258-2012


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https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=lvt2dtEsT_PLUS_So9/RIoa2DPg==&system=prod


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Sweeny, J.P., Webber, Kern, Oing, JJ.
7048 Syncora Guarantee Inc., Index 651258/12
Plaintiff-Respondent,
-againstMacquarie
Securities (USA) Inc.,
Defendant-Appellant,
Alinda Capital Partners LLC, et al.,
Defendants.
. . . . .........

Gibson, Dunn & Crutcher LLP, New York (Christopher M. Joralemon
of counsel), for appellant.

Quinn Emanuel Urquhart & Sullivan, LLP, New York (Maaren A. Shah
of counsel), for respondent.

Order, Supreme Court, New York County (Anil C. Singh, J.),
entered on or about February 14, 2017, which denied the motion of
defendant Macquarie Securities (USA), Inc. to dismiss the
complaint except to the extent of striking plaintiff's demands to
recover rescissory and punitive damages, unanimously affirmed,
without costs.

Plaintiff Syncora Guarantee Inc. issued unconditional and
irrevocable financial guaranty insurance policies, guaranteeing
the payment of principal and interest on $500 million in bonds,
which are backed by income from certain toll bridges and a toll
tunnel. Syncora asserts causes of action for fraud and negligent
representation against Macquarie, which acted as a financial

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FILED: NEW YORK COUNTY CLERK 10/10/2018 11:55 AM INDEX NO. 651258/2012
NYSCEF DOC. NO. 658 RECEIVED NYSCEF: 10/10/2018
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advisory services provider in connection with the transaction.
Syncora alleges that Macquarie knowingly overstated the income
forecasts from the toll properties with the intention of inducing
it to guarantee the payments under the bonds. It is undisputed
that Syncora continued to receive premiums from the insureds
under the policies after learning of the alleged fraud and
misrepresentations.
Insurance Law § 3015(b) (1) is not applicable because syncora
does not seek to defeat recovery by the insureds and does not
seek rescission of the insurance policies, which it could not do
because the policies are unconditional and irrevocable (see Ambac
Assur. Corp. v Countrywide Home Loans, Inc., NY , 2018 NY
Slip Op 04686, *3 (2018]).

Syncora sufficiently alleges facts from which it can be
inferred that it sustained damages arising from the alleged fraud
(see Deerfield Communications Corp. v Chesebrough-Ponds, Inc., 68
NY2d 954, 956 [1986]). Any factual questions as to whether the
damages it seeks to recover are identical to rescissory damages
may not be resolved on this motion to dismiss (see Ambac Assur.
Corp., 2018 NY Slip Op 04686, *3).
United States Life Ins. Co. in the City of N.Y. v Blumenfeld
(92 AD3d 487 (1st Dept 2012], and 113 AD3d 530 (1st Dept 2014))
do not require dismissal of Syncora's fraud and negligent
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FILED: NEW YORK COUNTY CLERK 10/10/2018 11:55 AM INDEX NO. 651258/2012
NYSCEF DOC. NO. 658 RECEIVED NYSCEF: 10/10/2018
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misrepresentation claims. There, the insurer sought a
declaratory judgment rescinding a life insurance policy on the
ground that the insured had made misrepresentations in its
application for coverage. The complaint provided no basis for
inferring that the insurer had sustained any compensable damages,
apart from its rescission claim. Here, in contrast, Syncora
alleges it has sustained hundreds of millions of dollars in
damages 'as a result of Macquarie's fraudulent misrepresentations,
which induced Syncora to issue the irrevocable policies to third
parties.

THIS CONSTITUTES THE DECISION AND ORDER
OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.
ENTERED: SEPTEMBER 20, 2018
CLERK
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FILED: NEW YORK COUNTY CLERK 10/10/2018 11:55 AM INDEX NO. 651258/2012
NYSCEF DOC. NO. 658 RECEIVED NYSCEF: 10/10/2018
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