A135898
This new trial judge finished res judicata banned Federal Mortgage Lender out-of San Francisco’s (the bank) claim against Nationwide Monetary Firm (Countrywide Economic) and you will suffered Nationwide Financial’s demurrer for the earliest amended problem instead of get-off to help you amend.
The lending company appeals. They argues the newest judge erred of the concluding res judicata banned its allege against Nationwide Economic just like the [t]right here try zero finally view on the merits in an earlier action which will has considering go up in order to res judicata in this action. I disagree and you will affirm. I ending the philosophy from res judicata pubs the fresh Bank’s claim facing Nationwide Economic because: (1) this new Bank’s voluntary dismissal of the claim facing Nationwide Financial inside the the earlier action is actually a last view with the deserves; and you will (2) the brand new allege the lending company disregarded inside a past suit ‘s the exact same reason for action as the claim it asserts against Nationwide Economic in the current suit. That have willingly disregarded that have bias claims of control people wrongdoing facing certainly one of several defendants because of its very own proper factors, the bank will most likely not avoid the res judicata outcomes of their choice and sue the newest disregarded accused anew, once again alleging handle-individual responsibility, when you look at the reliance upon the brand new pendency ones same claims contrary to the leftover stars in the 1st step.
I undertake because the true the next accusations on Bank’s revised grievance for the purpose of examining your order retaining Countrywide Financial’s demurrer:
Courtroom away from Desire, Very first Region, Section 5, Ca
Inside the a method entitled securitization, an entity originate[s] mortgages otherwise acquires men and women money and you may aggregates her or him on a security pool or financing pond on the market to help you a lender called a depositor. step 1 The fresh new depositor carries the fresh new funds in order to a rely on, which then activities permits you to people-for instance the Financial-can buy. At some point ahead of , the financial institution bought 95 domestic mortgage-backed ties out-of various bonds investors in 78 securitization trusts backed by residential mortgages at a high price of over $thirteen.5 million bucks. The bank bought licenses inside four securitizations of Nationwide Ties Company (Nationwide Securities). CWALT, Inc. (CWALT) approved the fresh permits from inside the five securitizations. Countrywide Ties appear to approved new certificates about 5th securitization. 2
In the , the financial institution sued seven bonds buyers and that provided and you can sold new 95 residential home loan-supported ties, as well as the entities and this granted the latest permits or controlled among organizations that issued the fresh permits (Credit Suisse or perhaps the Borrowing Suisse action). 3 The crux of one’s Bank’s says is defendants generated untrue or misleading statements within the providing documents given to the the fresh new home-based mortgage-recognized securities the financial institution bought.
One of many defendants within the Borrowing from the bank Suisse was Countrywide Securities Enterprise, CWALT, and Nationwide Monetary. Because relevant here, the financial institution alleged: (1) Countrywide Ties made false or misleading statements throughout the sale of ties for the solution regarding Providers Password areas 25401 and you may 25501 that have value so you can securitizations 74 owing to 78; 4 (2) Nationwide Securities and you may CWALT produced not the case or misleading comments when you look at the admission of areas 11 and a dozen of your Ties Work from 1933 (areas 11 & 12) with respect to securitizations 75 as a result of 78; and you may (3) Countrywide Financial broken point 15 of your Ties Operate (Area fifteen) predicated on its control over CWALT. Within its Point 15 allege against Countrywide Financial, the bank so-called CWALT stayed for no goal rather than receive pay day loans Redland AL and you will put loans toward trusts. Under Part fifteen ? Nationwide ? hence is likely on the Lender jointly and severally with, and to an identical extent once the, CWALT.
During the , the bank submitted the problem in the step prior to you trying erica Company (declaratory rescue step). The lending company sought for a good erica Agency-which in fact had bought Countrywide’s property-is actually accountable for any injuries Nationwide must pay when you look at the the credit Suisse action.