A135898
Brand new demonstration legal ended res judicata barred Federal Mortgage Financial from San Francisco’s (the bank) allege facing Countrywide Economic Company (Nationwide Monetary) and suffered Countrywide Financial’s demurrer into the very first amended complaint rather than get off to amend.
The financial institution appeals. They contends the fresh new courtroom erred of the finishing res judicata banned its allege facing Nationwide Monetary since the [t]right here try zero finally view towards the merits in the an earlier action that will keeps offered rise to help you res judicata inside step. I differ and you can affirm. We stop the brand new philosophy out of res judicata pubs brand new Bank’s allege against Countrywide Financial since: (1) the new Bank’s voluntary dismissal of the claim up against Nationwide Economic inside the prior step is actually a final judgment towards deserves; and (2) the fresh new allege the lending company overlooked in the an earlier suit ‘s the same reason for action given that allege it asserts against Countrywide Monetary in the modern suit. Having voluntarily disregarded having bias claims off control person wrongdoing up against certainly one of several defendants because of its very own proper causes, the financial institution will most likely not steer clear of the res judicata effects of their choice and you will sue brand new overlooked offender anew, again alleging manage-person responsibility, inside the reliance on new pendency ones exact same claims resistant to the remaining stars in the first action.
I deal with because the correct the next allegations on the Bank’s amended problem for the intended purpose of looking at the order sustaining Nationwide Financial’s demurrer:
Court of Focus, Very first Section, Section 5, Ca
For the a method named securitization, an organization originate[s] mortgage loans otherwise acquires those people finance and you may aggregates her or him to the a beneficial equity pond otherwise loan pond available to a lending institution entitled good depositor. 1 The latest depositor sells the fresh new financing so you’re able to a confidence, which then things licenses you to traders-like the Lender-can purchase. At some point before , the lending company bought 95 domestic financial-recognized securities away from various securities buyers inside the 78 securitization trusts backed by domestic mortgages at a cost more than $thirteen.5 billion dollars. The bank purchased permits inside the four securitizations away from Countrywide Bonds Agency (Nationwide Securities). CWALT, Inc. (CWALT) awarded brand new licenses when you look at the four securitizations. Nationwide Ties frequently issued new certificates about fifth securitization. dos
When you look at the , the bank prosecuted 7 securities buyers and this considering and sold the 95 domestic financial-backed ties, and agencies which issued this new licenses or regulated among the organizations that awarded the brand new Shoal Creek loans certificates (Credit Suisse or perhaps the Credit Suisse action). 3 Brand new crux of your own Bank’s states is defendants made incorrect otherwise misleading statements within the providing documents granted about the the fresh new domestic home loan-supported bonds the financial institution purchased.
Among the many defendants in Borrowing Suisse was indeed Nationwide Bonds Corporation, CWALT, and you can Nationwide Economic. As relevant here, the financial institution alleged: (1) Nationwide Bonds generated not the case otherwise misleading statements on the sale away from bonds when you look at the solution of Businesses Password areas 25401 and you may 25501 which have value so you can securitizations 74 as a consequence of 78; cuatro (2) Countrywide Bonds and you will CWALT made false otherwise mistaken comments into the ticket regarding parts eleven and you can several of your own Ties Work of 1933 (parts 11 & 12) regarding securitizations 75 because of 78; and (3) Countrywide Monetary broken section 15 of Ties Operate (Point fifteen) predicated on its control of CWALT. In its Area 15 allege facing Countrywide Monetary, the lending company alleged CWALT lived for no goal rather than located and you can put financing with the trusts. Lower than Point 15 ? Nationwide ? ergo is likely into Lender together and you may severally that have, in order to the same the amount as, CWALT.
In , the lending company submitted the brand new issue on the step just before all of us trying erica Agency (declaratory recovery step). The lending company sought a great erica Corporation-which had purchased Countrywide’s possessions-is actually accountable for people damage Countrywide was required to pay from inside the the credit Suisse step.
