The allegations are that Mayer Brown, which represented General Motors, drafted a release of JP Morgan’s UCC lien. JP Morgan did not object after the release of the lien was filed. Interestingly, the law firm that represented JP Morgan did not object to the documents prepared by Mayer Brown.
The Second Circuit, after a decision of the Delaware Supreme Court, held that JP Morgan lost is secured creditor status and became an unsecured creditor.
In litigation, you can often fix a mistake. In the world of corporate finance it is often impossible to fix mistakes like this because if the court fixes this mistake it would make it more difficult for people to rely on routine filings.
Edward X. Clinton, Jr.