In an interesting procedural decision, the United States District for the Southern District of New York certified an interlocutory appeal regarding the 2008 Housing and Economic Recovery Act (“HERA”), as to if the new statute displaced the statute of repose, generally, governing claims pursuant to the Securities Act of 1933.

In Federal Housing Finance Agency v. UBS Americas Inc., http://www.structuredfinancelitigation.com/files/2012/06/UBS-Interlocutory.pdf, Judge Denise Cote claimed that there was a single question as to if the FHFA may proceed with its federal securities laws’ claims against UBS regarding the sale of mortgage backed securities to Fannie Mae and Freddie Mac.  Judge Cote claimed that the FHFA’s claims under Securities Act Sections 11, 12 and 15 were timely.  The Court based her ruling on the fact that HERA provides for time limitations for these claims along with all federal and state causes of action. 

Since Judge Cote has certified this question to the Second Circuit to make a determination as to if these claims were timely, we should all watch the show because, if the Second Circuit agrees with Judge Cote, the litigation dykes will burst and the fireworks will begin.