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Powell v. Ocwen Financial Corp. — ERISA Plan Assets and RMBS Trust Certificates

The Second Circuit partially affirmed and partially vacated the Southern District of New York's summary judgment in Powell v. Ocwen Financial Corp., a case brought by trustees of an ERISA-regulated pension fund against mortgage servicers for alleged breach of fiduciary duty regarding residential mortgage-backed securities investments. The court held that mortgages underlying RMBS notes issued under indenture agreements lack substantial equity features and therefore are not plan assets under the DOL's plan-asset regulation (29 C.F.R. § 2510.3-101). However, the court held that mortgages underlying RMBS trust certificates do represent equity interests and therefore qualify as plan assets under ERISA's look-through exception. The case was remanded for further proceedings on the certificate-based investments.

False Imprisonment Statute of Limitations Ruling Reversed

The Tennessee Court of Appeals reversed the Wilson County Circuit Court's dismissal of Robert-Henry Butts IV's false imprisonment claim against Officer Jacob Berti, holding that the statute of limitations for false imprisonment does not begin to run until the imprisonment ends. The plaintiff was detained on November 1, 2022, and filed his complaint while still incarcerated, making his claim timely. The appellate court remanded the case for further proceedings, declining to address the plaintiff's abandoned assault and battery claim.