In the Matter of the Trusts established under the Pooling and Servicing Agreements

Filing 464

ORDER Any party wishing to be heard on the legal standards pursuant to which the Court should evaluate the proposed settlement - including the proposed allocation of the settlement fund - is directed to submit a supplemental letter brief on or befor e October 13, 2023. Once submissions are received, the Court will prioritize the completion of its review. The Clerk of Court is directed to stay this matter pending further order of the Court. (And as further set forth herein.) SO ORDERED. (Signed by Judge Katherine Polk Failla on 9/22/2023) (jca)

Case 1:17-cv-01998-KPF Document 464 Filed 09/22/23 Page 1 of 2

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
In the Matter of the Trusts Established under the
Pooling and Servicing Agreements relating to the
Wachovia Bank Commercial Mortgage Trust
Commercial Mortgage Pass-Through Certificates,
Series 2007-C30; COBALT CMBS Commercial
Mortgage Trust 2007-C2 Commercial Mortgage
Pass-Through Certificates, Series 2007-C2;
Wachovia Bank Commercial Mortgage Trust
Commercial Mortgage Pass-Through Certificates,
Series 2007-C31; ML-CFC Commercial Mortgage
Trust 2007-5 Commercial Mortgage PassThrough Certificates, Series 2007-5; and MLCFC Commercial Mortgage Trust 2007-6
Commercial Mortgage Pass-Through Certificates,
Series 2007-6

17 Civ. 1998 (KPF)
ORDER

KATHERINE POLK FAILLA, District Judge:
The Court has been working to resolve the objections of CWCapital
Cobalt Vr Ltd. (“Cobalt”) to (i) the proposed allocation of the settlement fund
associated with the proposed settlement agreement between CWCapital Asset
Management LLC (“CWC”) and Appaloosa Investment L.P. I and Palomino
Master Ltd. (collectively, “Appaloosa”), and (ii) Appaloosa’s motion for an award
of attorneys’ fees. While Appaloosa and Cobalt have provided substantial
caselaw regarding the standards for review of the Appaloosa fee petition,
neither they nor CWC nor the Trustee has provided comparable caselaw
addressing the standards pursuant to which this Court should evaluate the
proposed settlement fund allocation and Cobalt’s objection thereto. In the
Court’s estimation, the issue is complicated by choice-of-law issues, as well as
the Trustee’s decision to take no position concerning the proposed settlement.

Case 1:17-cv-01998-KPF Document 464 Filed 09/22/23 Page 2 of 2

In consequence, the Court believes that it would benefit from the parties’
insights in this regard. Any party wishing to be heard on the legal standards
pursuant to which the Court should evaluate the proposed settlement —
including the proposed allocation of the settlement fund — is directed to
submit a supplemental letter brief on or before October 13, 2023. Once
submissions are received, the Court will prioritize the completion of its review.
The Clerk of Court is directed to stay this matter pending further order of
the Court.
SO ORDERED.
Dated: September 22, 2023
New York, New York
KATHERINE POLK FAILLA
United States District Judge

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