On May 26, 2011, Justice Gerald Loehr of the Supreme Court of the State of New York granted in part and denied in part Morgan Stanley's motion to dismiss MBIA's claims for breach of contract, fraud, and unjust enrichment arising out of MBIA's wrap of a $269,000,000 second-lien RMBS transaction. The Court denied Morgan Stanley's motion to dismiss MBIA's fraudulent inducement and contract claims, finding that those counts were pled with sufficient particularity. The Court further held that MBIA's fraudulent inducement claim was not duplicative of its contract claim. The Court also refused to strike MBIA's request for punitive, consequential, and future damages. The Court, however, granted the defendants' motion to dismiss the unjust enrichment claim, finding that such a claim was precluded by the relevant servicing agreement. Decision.