Dubinsky et al. v. Mermart, LLC
After successfully removing the lawsuit from Missouri Circuit Court in the City of St. Louis to the United States District Court for the Eastern District of Missouri, Dowd Bennett prevailed on its motion to dismiss a subordinate bondholder action against its client, Mermart LLC. In its April, 2009 Order of Dismissal, the District Court agreed with Mermart’s position that many of the plaintiffs’ claims were barred because plaintiffs had not fulfilled the prerequisite of obtaining the consent of the senior mortgagees before bringing an enforcement action. The District Court also found Plaintiffs’ fraud and negligence claims to be barred by the economic loss doctrine. In February, 2010, the United States Court of Appeals for the Eighth Circuit affirmed the District Court’s order of dismissal in all respects.