BLACKROCK FINANCIAL MGMT. v. AMBAC ASSUR. CORP.

Docket Nos. 11-5309-cv(L), 11-5314-cv(CON).

673 F.3d 169 (2012)

BLACKROCK FINANCIAL MANAGEMENT INC., Maiden Lane, LLC, Maiden Lane II, LLC, Kore Advisors, L.P., Metropolitan Life Insurance Company, Trust Company of the West and Affiliated Companies Controlled by the TCW Group, Inc., Maiden Lane III, LLC, Pacific Investment Management Company LLC, Goldman Sachs Asset Management, L.P., Neuberger Berman Europe Limited, Invesco Advisers, Inc., Thrivent Financial for Lutherans, Teachers Insurance and Annuity Association of America, LBBW Asset Management (Ireland) PLC, Dublin, ING Bank N.V., Landesbank Badenwuerttemburg, ING Investment Management LLC, New York Life Investment Management LLC, Nationwide Mutual Insurance Company and its Affiliated Companies, ING Capital LLC, Aegon Financial Assurance Ireland Limited, Transamerica Life International (Bermuda) Ltd., Aegon USA Investment Management LLC, Authorized Signatory for Transamerica Life Insurance Company, Transamerica Advisors Life Insurance Company, Aegon Global Institutional Markets, PLC, Monumental Life Insurance Company, Pine Falls RE, Inc., Transamerica Financial Life Insurance Company, LIICA RE II, Inc., Western Reserve Life Assurance Co. of Ohio, Federal Home Loan Bank of Atlanta, Stonebridge Life Insurance Company, Prudential Investment Management, Inc., Western Asset Management Company, Bayerische Landesbank, The Bank of New York Mellon, as Trustee under various Pooling and Servicing Agreements and Indenture Trustee Under Various Indentures, Petitioners-Appellants, v. The SEGREGATED ACCOUNT OF AMBAC ASSURANCE CORPORATION, AMBAC Assurance Corporation, Triaxx Prime CDO 2007-1, Ltd., Triaxx Prime CDO 2006-2, Ltd., Triaxx Prime CDO 2006-1, Ltd., Commonwealth Investors, American Equity Investment Life Insurance Company, Walnut Place LLC, Walnut Place II LLC, Walnut Place III LLC, Walnut Place IV LLC, Walnut Place V LLC, Walnut Place VI LLC, Walnut Place VII LLC, Walnut Place VIII LLC, Walnut Place IX LLC, Walnut Place X LLC, Walnut Place XI LLC, Federal Home Loan Bank of San Francisco, Federal Home Loan Bank of Seattle, RMBS Acquisition, Inc., Cranberry Park LLC, Cranberry Park II LLC, TM1 Investors, LLC, V Re-Remic, LLC, Policemens Annuity & Benefit Fund of Chicago, The West-moreland County Employee Retirement System, City of Grand Rapids General Retirement System, City of Grand Rapids Police and Fire Retirement System, Federal Home Loan Bank of Boston, Federal Home Loan Bank of Chicago, Federal Home Loan Bank of Indianapolis, Federal Home Loan Bank of Pittsburgh, The Western and Southern Life Insurance Company, Columbus Life Insurance Company, Western-Southern Life Assurance Company, Integrity Life Insurance Company, National Life Insurance Company, Fort Washington Investment Advisors, Inc. on behalf of Fort Washington Active Fixed Income LLC, American International Group, Inc., American General Assurance Company, American General Life and Accident Insurance Company, American General Life Insurance Company, American General Life Insurance Company of Delaware, American Home Assurance Company, American International Life Assurance Company of New York, Chartis Select Insurance Company, Chartis Property Casualty Company, Commerce and Industry Insurance Company, First SunAmerica Life Insurance Company, Lexington Insurance Company, National Union Fire Insurance Company Of Pittsburgh, PA, New Hampshire Insurance Company, SunAmerica Annuity and Life Assurance Company, SunAmerica Life Insurance Company. The Insurance Company of the State of Pennsylvania, The United States Life Insurance Company in the City of New York, The Variable Annuity Life Insurance Company, Western National Life Insurance Company, Knights of Columbus, Respondents-Appellees.

United States Court of Appeals, Second Circuit.

Decided: February 27, 2012.


Attorney(s) appearing for the Case

Robert Madden , Gibbs & Bruns, LLP, Houston, TX ( Kathy Patrick , Gibbs & Bruns, LLP, Houston, TX, Kenneth E. Warner , Warner Partners, P.C., New York, NY, on the brief), for Petitioners-Appellants BlackRock Financial Management, Inc., et al.

Andrew L. Frey , Mayer Brown LLP, New York, N.Y. ( Matthew D. Ingber , Christopher J. Houpt , Mayer Brown LLP, New York, NY, Charles A. Rothfeld , Brian J. Wong , Mayer Brown LLP, Washington, DC, Hector Gonzalez , James M. McGuire , Dechert LLP, New York, NY, on the brief), for Petitioner-Appellant The Bank of New York Mellon.

Owen L. Cyrulnik , Grais & Ellsworth LLP, New York, N.Y. ( David J. Grais , Kathryn E. Matthews , Leanne M. Wilson , on the brief), for Respondents-Appellees Walnut Place LLC, et al.

Rachel Allison Gupta , DLA Piper LLP, New York, NY, for Respondents-Appellees The Segregated Account of Ambac Assurance Corporation & AMBAC Assurance Corporation.

John G. Moon , Miller & Wrubel P.C., New York, NY, for Respondents-Appellees Triaxx Prime CDO 2007-1, Ltd., et al.

Justin M. Sher , Sher LLP, New York, NY, for Respondent-Appellee Commonwealth Investors.

Peter N. Tsapatsaris , Peter N. Tsapatsaris, LLC, New York, NY, for Respondents-Appellees American Equity Investment Life Insurance Company & Knights of Columbus.

David J. Grais , Grais & Ellsworth LLP, New York, NY, for Respondents-Appellees Federal Home Loan Bank of San Francisco, et al.

Beth A. Kaswan , Scott+Scott LLP, New York, NY, for Respondents-Appellees Policemens Annuity & Benefit Fund of Chicago, et al.

Derek W. Loeser , Amy Christine   Williams-Derry , Keller Rohrback, L.L.P., Seattle, WA, Gary A. Gotto , Ron Kilgard , Keller Rohrback, PLC, Phoenix, AZ for Respondents-Appellees Federal Home Loan Bank of Boston, et al.

Heather Yue-Ling Fong , Robbins, Kaplan, Miller & Ciresi, LLP, New York, NY, for Respondent-Appellee Federal Home Loan Bank of Pittsburgh.

Daniel M. Reilly , Reilly Pozner, L.L.P., Denver, CO, for Respondents-Appellees Columbus Life Insurance Company, et al.

Theodore N. Mirvis , Wachtell, Lipton, Rosen & Katz, New York, N.Y. ( George T. Conway III , Elaine P. Golin , Won S. Shin , on the brief), for Amicus Curiae Bank of America Corporation.

Before: JACOBS, Chief Judge, HALL and LOHIER, Circuit Judges.


DENNIS JACOBS, Chief Judge:

On this appeal from an order of the United States District Court for the Southern District of New York (Pauley, J.) denying petitioners' motion to remand an Article 77 proceeding to New York Supreme Court, we consider again the application of 28 U.S.C. §§ 1453(d)(3) and 1332(d)(9)(C), exceptions to the federal jurisdiction conferred by the Class Action Fairness Act of 2005 ("CAFA"), Pub.L. No. 109-2, 119 Stat. 4 (codified...

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