Well, the Motion for Summary Judgment on the $4B has already been fully briefed and argued, so I feel it might be a little late for them to file a memorandum in support of it. As for a wholly separate motion asking the court to proceed, well, I'm honestly not sure since I've never come across a case where the party seeking summary judgment (WMI) has asked the court to refrain from granting the relief ($4B) sought in the first place.
I'm not so sure the $4B would spoil the proposed settlement at this point because it is clear and evident that WMI-Weil is seeking to accomodate JPM, and in doing so is willing to forsake all of its claims - as well as the $4B and a large slice of its tax returns. Whether they have a legal right to the $4B is one question, but whether they choose to exercise that right is another. You should keep in mind that the proposed settlement will fail over its own lack of merit - and that's if it hasn't already with the FDIC and bondholders challenging it. There is no way the Judge would ever allow such a travesty to take place, where WMI actually pays the culpable parties to settle while wiping out equity that could have, and should have, been saved.
Unless WMI-Weil's efforts are all part of some inconspicuous plan meant to trick JPM and the FDIC into lowering their defenses - perhaps so that WMI-Weil could proceed with exploiting the facts to its own advantage and gain a more favorable position in the negotiations - I don't know any other way for justice to be served than for the EC to push for a trustee to oversee the bankruptcy while voting to replace WMI's current BOD.
Gotta jet. Need to prepare for class and I'm swamped at work. Goodluck everyone!
