Bluebird Partners, L.P. v. First Fidelity Bank

This matter involves the right of plaintiff, transferee of certain indentures, to recover for losses sustained by its transferors as the result of malpractice alleged to have been committed by counsel for defendant collateral trustees. Plaintiff alleges that, prior to its acquisition of the bonds, the trustees permitted the value of the underlying collateral to decline by reason of counsel’s failure to timely file a motion for adequate protection in Bankruptcy Court. It is uncontroverted that plaintiff made a substantial profit upon disposition of the subject indentures.

Based upon our…