A135898
The newest trial legal concluded res judicata barred Federal Home loan Bank of San Francisco’s (the financial institution) allege facing Countrywide Economic Company (Countrywide Economic) and you will sustained Nationwide Financial’s demurrer toward earliest amended grievance as opposed to get-off in order to amend.
The bank appeals. They contends new judge erred from the finishing res judicata banned the claim against Nationwide Financial as the [t]here was no finally view into the merits when you look at the a previous action which will has actually provided rise to help you res judicata in this step. I differ and you may affirm. We finish the brand new doctrine off res judicata pubs brand new Bank’s claim against Countrywide Economic once the: (1) the new Bank’s volunteer dismissal of their claim against Countrywide Economic inside the the previous step is a last judgment toward merits; and you can (2) the newest claim the bank overlooked into the a previous lawsuit ‘s the exact same factor in step just like the allege it asserts up against Countrywide Monetary in the modern suit. That have voluntarily overlooked with bias states away from control people wrongdoing against certainly one of numerous defendants because of its individual strategic reasons, the bank may not avoid the res judicata effects of their decision and sue new disregarded offender anew, once more alleging handle-person liability, for the dependence on brand new pendency of them exact same states contrary to the leftover stars in the first step.
We accept as the genuine the next allegations regarding the Bank’s revised complaint with regards to evaluating your order preserving Nationwide Financial’s demurrer:
Court out of Focus, Basic District, Division 5, California
In the a process titled securitization, an organization originate[s] mortgage loans or acquires those people loans and you may aggregates him or her with the a beneficial collateral pool or financing pond available to a financial institution titled an excellent depositor. step one Brand new depositor offers the latest finance so you’re able to a believe, which in turn factors permits one people-for instance the Financial-can find. Will ultimately before , the financial institution purchased 95 residential home loan-supported bonds of some ties people within the 78 securitization trusts backed by home-based mortgage loans at a cost of over $thirteen.5 billion bucks. The financial institution ordered licenses within the four securitizations regarding Countrywide Bonds Company (Nationwide Securities). CWALT, Inc. (CWALT) approved brand new permits within the five securitizations. Countrywide Ties frequently awarded brand new licenses regarding the fifth securitization. dos
Inside the , the lending company prosecuted eight ties buyers and that provided and you may offered brand new 95 residential mortgage-supported ties, as well as the agencies which approved this new licenses or managed one of several organizations one to approved the licenses (Borrowing Suisse or perhaps the Borrowing from the bank Suisse action). step 3 The fresh crux of your Bank’s says was defendants generated untrue or misleading statements inside the providing data files given concerning the the brand new residential mortgage-backed securities the financial institution bought.
Among defendants inside the Credit Suisse was indeed Countrywide Bonds Company, CWALT, and you will Nationwide Monetary. As the related right here, the financial institution so-called: (1) Countrywide Bonds generated false otherwise misleading statements from the purchases regarding ties inside pass away from Enterprises Password parts 25401 and 25501 which have esteem in order to securitizations 74 courtesy 78; cuatro (2) Nationwide Ties and you can CWALT generated untrue get a loan with bad credit New Brockton AL or misleading statements inside solution out-of sections 11 and a dozen of the Securities Work out of 1933 (areas eleven & 12) in terms of securitizations 75 courtesy 78; and you will (3) Countrywide Economic broken area 15 of the Securities Work (Point 15) centered on its control over CWALT. In its Part 15 allege facing Nationwide Financial, the bank so-called CWALT lived for no purpose than to receive and you can put financing towards the trusts. Less than Part fifteen ? Countrywide ? therefore is liable on the Bank jointly and you will severally which have, and also to the same the amount as, CWALT.
From inside the , the bank recorded brand new complaint throughout the action ahead of united states trying erica Company (declaratory save action). The bank sought good erica Organization-which had ordered Countrywide’s property-are accountable for one damage Countrywide needed to pay during the the financing Suisse action.
