A135898
The brand new demo courtroom concluded res judicata barred Government Home loan Lender regarding San Francisco’s (the lending company) claim up against Countrywide Monetary Enterprise (Nationwide Monetary) and sustained Countrywide Financial’s demurrer into the very first revised grievance in the place of leave in order to amend.
The lending company appeals. They argues the newest judge erred from the concluding res judicata prohibited their claim against Nationwide Financial just like the [t]here try no finally wisdom towards merits into the an earlier action that could keeps offered increase to help you res judicata within step. I disagree and you can affirm. I conclude the new doctrine off res judicata pubs the fresh new Bank’s allege against Nationwide Financial as the: (1) the Bank’s volunteer dismissal of its allege against Countrywide Monetary within the the prior action try a final wisdom toward merits; and you may (2) the new claim the financial institution overlooked in the a past lawsuit ‘s the navigate to the site exact same factor in step because allege they claims up against Countrywide Economic in the modern lawsuit. With willingly dismissed which have bias claims regarding handle person wrongdoing facing among numerous defendants for the individual strategic explanations, the financial institution may well not prevent the res judicata consequences of its choice and you may sue the disregarded defendant anew, again alleging control-individual accountability, from inside the reliance on the pendency ones same claims against the remaining stars in the first step.
I take on once the real another accusations regarding the Bank’s revised grievance for the purpose of reviewing your order retaining Countrywide Financial’s demurrer:
Legal regarding Notice, Basic Area, Office 5, California
Inside a system entitled securitization, an entity originate[s] mortgages or acquires the individuals financing and aggregates her or him towards the an effective collateral pool otherwise mortgage pool for sale in order to a lender named good depositor. step 1 New depositor sells brand new funds to a count on, which then affairs permits you to definitely dealers-such as the Bank-can buy. Will eventually just before , the lending company bought 95 home-based mortgage-recognized bonds off individuals bonds investors within the 78 securitization trusts backed by residential mortgage loans at a cost of over $thirteen.5 million bucks. The financial institution ordered licenses within the five securitizations of Countrywide Ties Firm (Nationwide Ties). CWALT, Inc. (CWALT) provided the fresh licenses for the five securitizations. Countrywide Ties appear to given the latest permits on the fifth securitization. dos
From inside the , the bank prosecuted eight bonds buyers and this considering and you will sold the fresh new 95 domestic financial-supported securities, and also the organizations and that provided this new permits otherwise regulated among the organizations you to definitely issued the newest certificates (Credit Suisse and/or Borrowing from the bank Suisse action). 3 The latest core of your own Bank’s claims is defendants generated not true otherwise misleading statements within the offering records awarded to the the new residential mortgage-backed bonds the lending company ordered.
Among the many defendants from inside the Credit Suisse was indeed Countrywide Bonds Business, CWALT, and Countrywide Economic. As relevant here, the bank alleged: (1) Countrywide Bonds generated untrue otherwise mistaken comments on the income away from ties for the violation of Businesses Code areas 25401 and you will 25501 with admiration so you’re able to securitizations 74 because of 78; cuatro (2) Nationwide Securities and you may CWALT made incorrect otherwise misleading statements when you look at the violation of sections eleven and you will 12 of your own Ties Operate regarding 1933 (parts eleven & 12) in terms of securitizations 75 through 78; and you will (3) Nationwide Financial broken section 15 of Bonds Operate (Part fifteen) predicated on the power over CWALT. In Area 15 allege up against Countrywide Monetary, the lending company alleged CWALT lived for no mission rather than found and you can deposit financing toward trusts. Significantly less than Section 15 ? Countrywide ? therefore is likely to the Financial as one and you may severally with, and also to the same the total amount due to the fact, CWALT.
During the , the bank submitted the fresh new problem from the action in advance of you trying erica Business (declaratory relief step). The bank sought for a beneficial erica Organization-which had bought Countrywide’s possessions-was liable for any damages Countrywide needed to spend during the the credit Suisse action.