Alan Greenwald, Steven Greenwald, John Powers, D/B/A Greenwald, Greenwald & Powers v. Chase Manhattan Mortgage Corporation

BOUDIN, Circuit Judge.

This restitution action has its origin in mortgage refinancing loans acquired by defendant-appellee Chase Manhattan Mortgage Corporation (“Chase”) from the now-bankrupt Abbey Financial Corporation (“Abbey”). During the early 1990’s, Chase regularly purchased mortgage loans on the secondary mortgage market from independent mortgage companies such as Abbey. At the’ time of the events in this case, Chase had a contractual right to review Abbey loans and buy those Chase wanted.

In settling some of its loans, Abbey employed as a closing agent the law firm of Greenwald,…