Court Denies Most Chase Claims Against Advanta

A federal court in Delaware has denied $88 million in claims by Chase Manhattan Mortgage, Iselin, N.J., that it was deceived by Advanta Corp. when it bought the credit card company's residential subprime division four years ago.However, the court ruled in Chase's favor in regard to one specific contract claim, which means that Advanta must pay Chase $17.5 million plus interest. A post-trial "findings of fact" document issued by the court states that Advanta made "several misstatements or omissions of fact in its dealings with Chase…" In a separate issue involving claims and counterclaims tied to the $1 billion purchase, Chase agreed to pay Advanta, of Spring House, Pa., $8.75 million. It appears that Advanta's exposure on the case -- excluding legal costs -- totals $8.75 million. Advanta officials could not be reached for comment as of MortgageWire's deadline.