A135898
The newest demonstration court finished res judicata banned Government Mortgage Bank regarding San Francisco’s (the lending company) claim against Countrywide Economic Organization (Nationwide Monetary) and you can suffered Nationwide Financial’s demurrer into basic revised ailment as opposed to leave to help you amend.
The lending company appeals. It argues the fresh judge erred by the finishing res judicata prohibited their claim against Nationwide Monetary once the [t]here are no latest judgment with the merits in a past action that will features provided go up so you’re able to res judicata contained in this action. I disagree and you will affirm. We ending the fresh new doctrine out of res judicata pubs new Bank’s allege against Countrywide Financial because the: (1) the newest Bank’s volunteer dismissal of the claim against Countrywide Economic when you look at the the earlier action try a last judgment into the merits; and you may (2) this new claim the lending company dismissed inside an earlier lawsuit is the same cause of action given that claim they claims up against Countrywide Financial in today’s suit. Which have willingly ignored having bias says off handle people wrongdoing up against certainly one of several defendants because of its very own strategic reasons, the lending company may not prevent the res judicata outcomes of their decision and you will sue the dismissed defendant anew, again alleging manage-people accountability, into the reliance upon the newest pendency of these same states contrary to the leftover actors in the first action.
I deal with because the correct the next allegations on Bank’s amended grievance for the true purpose of reviewing your order sustaining Nationwide Financial’s demurrer:
Courtroom regarding Desire, First Section, Office 5, Ca
Within the a process called securitization, an entity originate[s] mortgages or acquires those people loans and you may aggregates him or her on the a collateral pool or mortgage pond obtainable to help you a lender entitled an effective depositor. step one The fresh new depositor deal the brand new fund in order to a depend on, which then points licenses one to traders-such as the Bank-should buy. Will ultimately ahead of , the bank purchased 95 home-based home loan-recognized bonds out-of individuals bonds investors inside 78 securitization trusts backed by domestic mortgages at a price more than $13.5 million cash. The financial institution ordered licenses during the five securitizations away from Countrywide Bonds Corporation (Countrywide Securities). CWALT, Inc. (CWALT) given this payday loan Fort Carson new permits inside the four securitizations. Countrywide Ties appear to approved the fresh new permits on the 5th securitization. 2
Inside , the bank sued eight bonds buyers hence offered and you may offered the fresh new 95 residential mortgage-supported bonds, in addition to entities hence issued the fresh new certificates otherwise controlled among agencies you to definitely awarded the permits (Credit Suisse and/or Borrowing Suisse action). 3 Brand new crux of your own Bank’s says was defendants produced false otherwise mistaken statements from inside the offering records given concerning the brand new home-based home loan-supported securities the bank purchased.
One of several defendants within the Borrowing Suisse was basically Countrywide Bonds Business, CWALT, and you can Countrywide Financial. Just like the related here, the lending company so-called: (1) Countrywide Bonds produced incorrect or mistaken statements in the purchases of bonds during the citation out of Companies Password sections 25401 and you can 25501 which have respect to help you securitizations 74 as a result of 78; cuatro (2) Countrywide Securities and you will CWALT generated incorrect otherwise mistaken comments within the violation off parts eleven and you may a dozen of the Securities Act out of 1933 (sections eleven & 12) with respect to securitizations 75 using 78; and you may (3) Nationwide Economic violated part 15 of your own Ties Operate (Part fifteen) predicated on the command over CWALT. With its Part fifteen claim against Countrywide Economic, the bank so-called CWALT stayed for no mission rather than receive and put finance for the trusts. Around Section fifteen ? Countrywide ? hence is liable to your Lender as you and you can severally that have, and to a comparable extent because, CWALT.
During the , the bank submitted the fresh new ailment from the action prior to all of us seeking erica Enterprise (declaratory relief step). The financial institution desired good erica Business-which had purchased Countrywide’s assets-try liable for one problems Nationwide was required to pay for the the credit Suisse action.