In a lengthy opinion yesterday resolving a 14-day bench trial, Judge Sweet rejected claims by bond insurer MBIA that Patriarch Partners, a private equity firm, was liable for over $120 million in damages for allegedly breaching a complex contract related to a 2003 CDO transaction.   Patriarch had agreed, under certain conditions, to use up to $120 million of a CDO note to help reduce MBIA’s insurance exposure on certain MBIA-insured structured finance deals.  Judge Sweet ruled that Patriarch’s obligations had not come due under the contract, and entered judgment in Patriarch’s favor. Hillary Richard of Brune & Richard was lead trial counsel for Patriarch.