CITY OF CLEVELAND v. AMERIQUEST MORT. SECURITIES

No. 09-3608.

615 F.3d 496 (2010)

CITY OF CLEVELAND, Plaintiff-Appellant, v. AMERIQUEST MORTGAGE SECURITIES, INC.; Bear Stearns & Co., Inc.; Citigroup Global Markets, Inc.; Countrywide Securities Corporation; Credit Suisse First Boston LLC; Credit Suisse (USA), Inc.; Goldman Sachs & Co.; Deutsche Bank Securities, Inc.; Greenwich Capital Markets, Inc.; GMAC-RFC; HSBC Securities (USA), Inc.; JP Morgan Acquisition Corp.; Merrill Lynch, Pierce, Fenner & Smith, Incorporated; Morgan Stanley & Co., Inc.; Novastar Mortgage, Inc.; Option One Mortgage Corporation; Washington Mutual Bank; Wells Fargo Bank, N.A.; Wells Fargo Asset Securities Corporation; Citibank, N.A.; Chase Bank USA, N.A.; Bank of America, N.A., Defendants-Appellees.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: July 27, 2010.


Attorney(s) appearing for the Case

ARGUED: Joshua R. Cohen, Cohen Rosenthal & Kramer LLP, Cleveland, Ohio, for Appellant. David F. Adler, Jones Day, Cleveland, Ohio, for Appellees. ON BRIEF: Joshua R. Cohen, Jason R. Bristol, Cohen Rosenthal & Kramer LLP, Cleveland, Ohio, Robert J. Triozzi, Gary S. Singletary, Michael F. Cosgrove, City of Cleveland Law Department, Cleveland, Ohio, for Appellant. David F. Adler, Andrew G. Fiorella, Jones Day, Cleveland, Ohio, Louis A. Chaiten, Eric E. Murphy, Jones Day, Columbus, Ohio, Robert D. Kehoe, Joseph J. Jerse, Kehoe & Associates, Cleveland, Ohio, Joanne N. Davies, Buchalter Nemer, Irvine, California, Bernard LeSage, Shannon Keast, Buchalter Nemer, Los Angeles, California, Michael N. Ungar, Isaac Schulz, Richik Sarkar, Ulmer & Berne, Cleveland, Ohio, Brian D. Boyle, Christopher D. Catalano, O'Melveny & Myers LLP, Washington, D.C., William H. Falin, Moscarino & Treu, Cleveland, Ohio, Charles E. Davidow, Paul Weiss Rifkind Wharton & Garrison, Washington, D.C., Gabrielle E. Tenzer, Paul Weiss Rifkind Wharton & Garrison, New York, New York, William W. Jacobs, Kip Thomas Bollin, Robin M. Wilson, Thompson Hine, Cleveland, Ohio, Jeffrey Q. Smith, Scott E. Eckas, Bingham McCutchen LLP, New York, New York, Richard H. Klapper, Michael T. Tomaino, Jr., Sullivan & Cromwell LLP, New York, New York, W. Stuart Dornette, Taft Stettinius & Hollister LLP, Cincinnati, Ohio, Stephen M. O'Bryan, Taft Stettinius & Hollister LLP, Cleveland, Ohio, Thomas Robert Lucchesi, Baker & Hostetler LLP, Cleveland, Ohio, Benjamin Klubes, Buckley Sandler LLP, Washington, D.C., David H. Kistenbroker, Theresa L. Davis, Katten Muchin Rosenman LLP, Chicago, Illinois, Robert B. Casarona, Roetzel & Andress, LPA, Cleveland, Ohio, Robert N. Rapp, Calfee, Halter & Griswold LLP, Cleveland, Ohio, Jay B. Kasner, Skadden, Arps, Slate, Meagher & Flom, New York, New York, Joseph L. Barloon, Skadden, Arps, Slate, Meagher & Flom, Washington, D.C., John F. Marsh, Hahn Loeser & Parks, Columbus, Ohio, Brian Brooks, O'Melveny & Meyers, Washington, D.C., Elizabeth McKeen, O'Melveny & Meyers, Newport Beach, California, Joseph T. Dattilo, Brouse McDowell, Cleveland, Ohio, Patrick M. McLaughlin, McLaughlin & McCaffrey, LLP, Cleveland, Ohio, Robert D. Wick, Keith A. Noreika, Covington & Burling LLP, Washington, D.C., for Appellees. Linda I. Cook, Ohio Poverty Law Center, Columbus, Ohio, Eugene L. Hollins, Dale D. Cook, Wiles, Boyle, Burkholder & Bringardner Co., L.P.A., Columbus, Ohio, for Amici Curiae.

Before SUHRHEINRICH, McKEAGUE, and GRIFFIN, Circuit Judges.


OPINION

SUHRHEINRICH, Circuit Judge.

In this diversity case, the city of Cleveland, Ohio ("Cleveland"), brings a public nuisance suit against twenty-two financial entities ("Defendants") that it claims are responsible for a large portion of the subprime lending market in Cleveland and nationally.1 Cleveland argues that the Defendants' financing of subprime mortgages, the alleged public...

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