Ohio Supreme Court holds that right to sue does not automatically transfer to purchasers of distressed bonds

In the Ohio Supreme Court’s opinion in Paul Cheatham I.R.A. v. The Huntington National Bank, the Court held that the right to sue a bond trustee does not automatically transfer to a buyer of the bond. In that opinion, issued August 22, 2019, the Court held that absent an express assignment of claims, purchasers of distressed bonds do not have a right to sue the bond trustee for compensation of investment losses of prior bondholders. For more, read our full article, Ohio Supreme Court rejects bondholders suit against trustee for compensation of losses.

 

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