A New York judge denied bond insurer MBIA Inc.’s bid for a pretrial ruling on whether Bank of America is liable for about $4.5 billion of soured mortgages made by a lender that the bank acquired in 2008.

In a 77-page ruling released late Monday, New York State Supreme Court Justice Eileen Bransten denied MBIA’s motion for a summary judgement on the issue of successor liability, while also rejecting Bank of America summary judgment on motions that it should not be held liable for claims against the mortgage bank, Countrywide Financial Corp. In response to both motions, Judge Bransten said there are issues of fact in dispute that cannot be decided in an instant ruling. The lawsuit may now proceed to trial.

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