"Nothing wrong with housekeeping, but once there is knowledge of the possibility of litigation, that trumps housekeeping," said Mr. Lubet.
There has to be enough common knowledge around the subject matter of the litigation," says Atlas' partner, Lynch.
Since legal business could be conducted only on certain days (dies fasti), knowledge of the calendar was important for litigation.
In July, the agency filed suit against UBS, another major mortgage securitizer, seeking to recover at least $900 million, and the individuals with knowledge of the case said the new litigation would be similar in scope.
Herb Allen, in a letter dated Oct. 17 responding to Mr. Burstein's threat of a lawsuit, also said that he had not seen or spoken to Robert Allen in over 30 years and had no knowledge of any litigation involving his cousin.
A.I.G. is preparing similar suits against other large financial institutions including Goldman Sachs, JPMorgan Chase and Deutsche Bank, said the people with knowledge of the complaint, as part of a litigation strategy aimed at recovering some of the billions in losses the insurer sustained during the financial crisis.
Settlements represent one end of the litigation pipeline.
But it is not out of the litigation woods yet.
That did not end the bizarre character of the litigation.
We identified a small difference in the outcomes of litigation for claims, specifically in the duration from the dispute to closure of the litigation.
