‘More on Fraud in the Performance, this time from the Supreme Court’

“A few weeks ago I posted on the Second Circuit’s decision in US ex rel O’Donnell v Countrywide Home Loans, which held that Countrywide’s knowing delivery of effectively worthless loans to Fannie Mae and Freddie Mac, without disclosing that fact, was not fraudulent. One way to read the decision is as affirming the well established, and to some baffling, rule that a party to a contract has no duty to disclose its breach of the contract, no matter how knowing or material …” (more)

[Greg Klass, New Private Law, 17 June]

First posted 2016-06-18 07:49:36

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