The order granting the dismissal in Wells Fargo NA et al. v. Richmond, Calif., and Mortgage Resolution Partners LLC “only addresses the matter of timing before the courts,” according to a written statement issued late Monday by John Ertman, partner at Ropes & Gray LLP, on behalf of the directing certificate holder group involved in the suit.
“This is not a victory for the program and only postpones the day that Richmond and MRP will have to defend this program in court,” Ertman said. “This is an unprecedented application of eminent domain powers that we believe is facially unconstitutional. If implemented by the city, this eminent domain program will cause economic harm to millions of savers and retirees throughout the United States.
“We stand ready to act at the appropriate time to prevent this unconstitutional investment scheme from unfolding in Richmond or elsewhere.”
An order from the U.S. District Court for the Northern District of California filed Monday formally dismissed the suit in line with comments made by the adjudicating Judge Charles Breyer at a hearing late last week.
“For the reasons stated in open court at the hearing held on Sept. 12, 2013, the court finds that plaintiff’s claims are not ripe for adjudication,” the judge said in the order granting the dismissal.