William L. Norton, III Quoted in Law360 Regarding Precedent-Setting $1.5 Billion Error

A Second Circuit decision recently held that JPMorgan Chase & Co. will have to account for a Mayer Brown paralegal’s $1.5 billion error on loan paperwork for General Motors Corp. When GM filed for bankruptcy, the mistake which had gone unnoticed caught the attention of unsecured creditors. The article clarifies the central question of the case, noting, “the appeals court said that while JPMorgan may not have intended to authorize the legal result of the stray document, what it wanted and what ‘actions it authorized’ were two different things.”

”This is going to be very strong precedent that is likely to be followed in other jurisdictions in that you only have to look to the filing of the document and not to the intent of what the filing may do to your case,” said Norton. “Lawyers would have loved to have had the excuse that if you did something you hadn’t intended, you could still get out of it.”

Read the complete Law360 article, “Liens Safe After $1.5B Mayer Brown Loan Gaffe Upheld.”