Delaware Business Litigation Report

Chase Manhattan Mortgage Corp. v. Advanta Corp.

Chase Manhattan Mortgage Corp. v. Advanta Corp., 2005 WL 2234608(D.Del., Sept. 8, 2005). Plaintiffs filed an action alleging that Defendant Advanta engaged in (1) federal securities fraud in violation of § 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j; (2) Delaware securities fraud in violation of 6 Del. C. § 7323(a)(2); (3) common law fraud; (4) negligent misrepresentation; and (5) breach of contract. The claims asserted by both parties arose out of either (1) a Purchase and Sale Agreement (the "Agreement"), pursuant to which Advanta sold mortgage assets to Chase, or (2) a Post-Closing Letter pursuant to which $1,270,000 was placed in a Document Holdback Account. The Court found Defendant Advanta liable to Plaintiff for $17,516,456.43, plus pre-judgment and post-judgment interest, and Plaintiff liable to Defendant Advanta for $824,190, plus pre-judgment and post-judgment interest. Share