Lehman Not Seeking Damages From BofA Beyond Fees January 19, 2011, 1:29 PM EST More From Businessweek Texas Republicans Make $9 Billion Reserve Off Limits Moynihan Fights Fires at BofA Amid Book-Value Doubts NYC Office Rents Post First Gain Since Lehman Collapse Brevan Howard’s Stonberg Quits to Join Credit Suisse BofA, JPMorgan Said to Be Among Underwriters on AIG Stock Sale Story Tools e-mail this story print this story 0diggsdiggadd to Business Exchange By Linda Sandler
(Updates with judge’s comment in fifth paragraph.)
Jan. 19 (Bloomberg) -- Lehman Brothers Holdings Inc. said it won’t seek damages from Bank of America Corp. beyond its costs of litigating a case in which the bank was ordered to return $500 million in deposits to Lehman and pay $90 million in interest.
A lawyer for Lehman disclosed the company’s intentions at a hearing in U.S. Bankruptcy Court in Manhattan today. Judge James Peck said he had expected to consider whether he should fine the bank for breaking bankruptcy law when it took the deposits.
Lehman is demanding $1.3 million in lawyers’ fees, or a quarter of its legal costs up to $5 million, for litigating the case, plus $8.8 million in other funds taken by the bank.
Peck advised Lehman to consider whether it was wasting time and money in pursuing “relatively” small sums.“I don’t want to make the tail of the case into the dog,” he said.
Peck said in his November ruling that Charlotte, North Carolina-based Bank of America illegally took deposits unrelated to the loans to Lehman that it sought to protect. The bank has said it intends to appeal the $590 million ruling.
The case is Bank of America NA v. Lehman Brothers Holdings Inc., 08-01753, in U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--Editors: Fred Strasser, Michael Hytha
To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net
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