Mr Cooper Group Inc (COOP)

[DanBB]

11/06/09 Ins Comp vs JPM (11AM hearing)

I just came from the the hearing. Two other cases were finishing up.

(Not our case) I walked into a full courtroom during the first case which was at the tail end. I sat next to Mr Clark and behind Ms. Friedman. Judge Collyer (THJC) was handing down a sentence to a fed employee regarding handling of a Congressional earmark. The government wanted him to serve 12 months in jail. THJC sentenced the guy to 6 months house arrest and 3 years probation. And she went into detail explaining why the sentence was appropriate. The guy and his family and friends were very happy with that sentence. THJC commended the government attorney's for a very good job.

(Not our case) The second case THJC quickly send both sides to 75 days of conference to try and work it out. The defendant was a librarian and I have no idea what the case was about.

As to the case in which we are interested, including myself there was only one other person in the gallery.

Insurance Company had Greg Smith and Mr. Scrokmore(sp?). JPM has Ms Friedman and David Clark for the FDIC Rec.(his partner was not present for personal business)

THJC opened with a comment that the case may not necessarily relate to the other cases. [I took this as reference to WMIvs JPM and WMI BK]

THJC then said she knows no way to send it back to TX state court. And if she tried she suspects the case will simply ping-pong around.

[Mr Smith often used "I" and "he", not "us" or "we"] Mr. Smith spoke next and said he is concerned that the federal court does not have subject matter jurisdiction. That he is suing Chase and not the FDIC. And he is suing for actions by Chase against WMI occurring before the seizure of WMB.

THJC said we should litigate the subject matter question first. She then said Mr Smith should file a Motion to Dismiss. Mr Smith agreed. THJC asked Mr Smith how days he would need to file a response[I may have the legal term wrong]. At this point Ms Friedman stood wanting to be heard.

THJC joked and told Mr Smith, "oh well.. due and process and all." To which Mr Smith jokingly said "that a problem we've had."

Ms Friedman said she thinks there is more to be decided than simply the question of subject matter. That there are derivative claims. That perhaps WMI is missing from the case who holds those derivative claims. THJC asked Ms Friedman what she would like to file and the response was motion to dismiss for lack of standing.

THJC laughed at this and said well it seems you both want to leave. THJC said for them to cross file. both sides agreed on 30 days to file responses and arguments in 90 days.

Hearing adjourned.