A135898
The demo courtroom ended res judicata barred Government Mortgage Bank out-of San Francisco’s (the bank) claim up against Countrywide Financial Corporation (Countrywide Monetary) and suffered Nationwide Financial’s demurrer on earliest amended issue versus log off to help you amend.
The bank is attractive. They argues the latest judge erred from the concluding res judicata banned the claim facing Countrywide Monetary given that [t]right here was no final judgment for the deserves during the an earlier action that could keeps provided go up so you’re able to res judicata inside step. We disagree and you will affirm. We end this new philosophy off res judicata pubs new Bank’s allege up against Nationwide Economic as the: (1) the brand new Bank’s voluntary dismissal of the allege facing Nationwide Economic inside the prior step is actually a last judgment toward merits; and you can (2) the new claim the financial institution dismissed into the a previous lawsuit is the same cause of action given that allege it asserts up against Nationwide Economic in the modern lawsuit. Which have willingly ignored that have prejudice claims out-of control people wrongdoing facing certainly numerous defendants because of its own strategic factors, the bank may well not avoid the res judicata effects of the decision and you can sue the fresh new dismissed defendant anew, once more alleging manage-people accountability, in the reliance upon brand new pendency ones exact same states up against the left actors in the 1st action.
We deal with once the real next allegations about Bank’s revised complaint with regards to evaluating the order preserving Nationwide Financial’s demurrer:
Courtroom away from Attract, Very first Region, Office 5, Ca
In a process titled securitization, an entity originate[s] mortgage loans otherwise acquires the individuals funds and you will aggregates them on the an excellent guarantee pond or loan pond for sale to a lending institution called an effective depositor. step one The latest depositor offers this new finance to help you a confidence, which in turn circumstances certificates you to investors-for instance the Bank-should buy. Will eventually ahead of , the lending company ordered 95 domestic home loan-backed bonds regarding certain bonds traders within the 78 securitization trusts supported by domestic mortgages at a high price of over $thirteen.5 million cash. The financial institution ordered certificates within the five securitizations of Countrywide Ties Business (Countrywide Ties). CWALT, Inc. (CWALT) granted the latest certificates inside four securitizations. Countrywide Bonds seem to issued the newest licenses about fifth securitization. dos
In the , the financial institution charged 7 ties people and that considering and sold the latest 95 residential mortgage-recognized bonds, additionally the agencies and this granted the licenses otherwise managed among organizations that given this new licenses (Credit Suisse or even the Borrowing Suisse action). 3 The fresh new crux of one’s Bank’s claims are defendants generated not the case or mistaken comments into the offering data files awarded about the the newest home-based home loan-recognized bonds the financial institution purchased.
One of several defendants for the Borrowing from the bank Suisse was Countrywide Ties Firm, CWALT, and you may Countrywide Financial. Once the related here, the bank so-called: (1) Countrywide Securities produced incorrect otherwise misleading statements in the marketing from securities during the pass out of Providers Password parts 25401 and 25501 having admiration in order to securitizations 74 due to 78; cuatro (2) Nationwide Securities and CWALT made false otherwise mistaken comments in the admission regarding areas 11 and you will twelve of one’s Ties Act away from 1933 (sections eleven & 12) regarding securitizations 75 by way of 78; and you may (3) Countrywide Monetary broken area 15 of the Securities Work (Part 15) according to the control of CWALT. With its Section fifteen claim facing Countrywide Monetary, the financial institution alleged CWALT lived for no mission rather than receive and you may deposit finance to your trusts. Under Point 15 ? Countrywide ? ergo is likely into Lender together and you may severally that have, in order to an identical the amount just like the, CWALT.
Within the , the lending company recorded new criticism regarding the action prior to united states trying erica Enterprise (declaratory recovery step). The lending company tried a great erica Company-which in fact had ordered Countrywide’s possessions-was accountable for any damage Countrywide must pay within the the credit Suisse action.
