BANK OF NEW YORK TRUST CO. v. FRANKLIN ADVISERS

Docket Nos. 12-0168, 12-0169, 12-0878, 12-0880.

726 F.3d 269 (2013)

The BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee, Plaintiff, v. FRANKLIN ADVISERS, INC., Defendant-Appellee, Franklin CLO II, Ltd., Franklin CLO Corp., Chase Manhattan Bank London Nominee for Seira 13, as Nominee, Deutsche Bank Securities Inc., as A Nominee, Gensec Ireland Limited, as A Nominee, Hare & Co., as Nominee, Mac & Co., Massachusetts Mutual Life Insurance Co., Sun Life Insurance Co. of Canada, as A Nominee, Templeton Global Advisors, Ltd., as A Nominee, "John Doe 1," Through "John Doe" 12, The Last Twelve Names Being Fictitious and Unknown to Plaintiff, The Persons or Parties Intended Being The Beneficial Owners of the Preferred Shares, the Series I Combination Security and the Class C2 Notes Under Complaint, Defendants, v. CDO Plus Master Fund, Ltd., Merrill Lynch, Pierce, Fenner & Smith Inc., as A Nominee, Defendants-Appellants.

United States Court of Appeals, Second Circuit.

Decided August 1, 2013.


Attorney(s) appearing for the Case

James C. Martin , Reed Smith LLP, New York, New York ( James C. McCarroll and C. Neil Gray , on the brief), for Appellants.

Jonathan L. Hochman , Schindler Cohen & Hochman LLP, New York, New York ( Matthew A. Katz , on the brief), for Appellee.

Before: JACOBS, Chief Judge, POOLER, Circuit Judge, and VITALIANO, District Judge.


DENNIS JACOBS, Chief Judge:

This interpleader action was initiated by The Bank of New York Trust Company, N.A. ("BNY"), as Trustee of an investment portfolio of collateralized loan obligations, to resolve a contract dispute between certain shareholders and the manager of that portfolio, Franklin Advisers, Inc. ("Franklin"). In dispute are the terms of the underlying indenture and, specifically, terms governing distribution of a Contingent Collateral Management Fee...

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