J.P. Morgan Gets Trial Date for Surety Case
From Reuters
A federal judge ruled that J.P. Morgan Chase & Co. must go to trial to try to obtain almost $1 billion in disputed Enron Corp.-related surety bond payments from insurers, the bank said.
Manhattan federal Judge Jed Rakoff denied the bank summary judgment in the case, which now goes to trial Dec. 2.
J.P. Morgan sued 11 insurers after energy trader Enron went bankrupt and failed to deliver oil and gas to two of the bank’s offshore trading units.
The insurers say they were misled about the nature of the deals they were insuring and claim they do not have to pay.
