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CURIALE v. REISSMAN

No. 91 Civ. 6344 (MEL).

798 F.Supp. 141 (1992)

Salvatore R. CURIALE, Superintendent of Insurance of New York, as Rehabilitator for Executive Life Insurance Company of New York, S.N. Phelps & Co., Northeast Investors Trust, Washington Mutual Savings Bank, Barry W. Blank, Andrew Gregor, James E. Erickson, Anchor National Life Insurance Company, American Investors Life Insurance Company, Inc., Jack Farber, Ota Limited Partnership, Robert M. Gintel and Cecil A. Godman, Plaintiffs, v. Maurice L. REISSMAN, Edward S. Reid, Marion P. Ames, Elwin S. Larson, Thomas J. Hennessy, Robert B. Goldstein, Arthur H. Christy, Frank A. Dellomo, William G. Sharwell, John Sadlik, and George R. Walker, Defendants.

United States District Court, S.D. New York.

July 6, 1992.

Attorney(s) appearing for the Case

Douglas R. Jensen, Andrews & Kurth L.L.P., New York City (Andrews & Kurth L.L.P., Hugh M. Ray, John A. Lee, Houston, Tex., Andrews & Kurth L.L.P., James B. Hicks, Soh-Yung M. Kim, Los Angeles, Cal., of counsel), for plaintiffs.

Simpson Thacher & Bartlett (Roy L. Reardon, of counsel), New York City, for defendants Edward S. Reid, Marion P. Ames, Elwin S. Larson, Thomas J. Hennessy, Arthur H. Christy, William G. Sharwell, John Sadlik and George R. Walker.

Milberg Weiss Bershad Specthrie & Lerach (Melvyn I. Weiss, Barry A. Weprin, of counsel), New York City, for defendants Maurice L. Reissman, Robert B. Goldstein and Frank A. Dellomo.

LASKER, District Judge.

The question presented is whether federal subject matter jurisdiction exists over plaintiffs' claims. Plaintiffs are several individual holders of notes issued by CrossLand Savings, FSB (CrossLand) who seek to collect two payments due in 1991 but defaulted on by the bank.

Plaintiffs have held 11¼ Senior Subordinated Capital Notes since they were issued in September 1986 by CrossLand. The notes were due on September 15, 1998 with...

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