(Reuters) – American International Group Inc won a legal victory over where a mortgage fraud lawsuit it brought against Bank of America Corp should be heard, a two-year-old case that has largely been on hold because of the dispute over venue.
The 2nd U.S. Circuit Court of Appeals on Friday agreed with AIG that the case belongs in state court, not federal court as Bank of America preferred.
It threw out an October 2011 lower court ruling that had denied AIG's bid to move the case back to the New York state court where it had begun two months earlier.
Writing for a three-judge appeals court panel, U.S. Circuit Judge Pierre Leval rejected Bank of America's argument that the case belonged in federal court under the Edge Act, a 1919 law governing international banking.
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