A135898
The demonstration legal ended res judicata barred Government Mortgage Lender out-of San Francisco’s (the bank) claim against Nationwide Financial Agency (Nationwide Financial) and you may sustained Nationwide Financial’s demurrer into basic revised grievance in the place of hop out to help you amend.
The lending company appeals. It argues this new judge erred of the finishing res judicata barred the allege against Nationwide Financial as [t]right here is no last judgment into merits in an earlier action that will features given increase so you can res judicata contained in this step. We disagree and you may affirm. I stop the fresh new doctrine away from res judicata bars the fresh new Bank’s claim up against Countrywide Economic while the: (1) brand new Bank’s voluntary dismissal of its claim facing Countrywide Financial into the the earlier action is a final view on the merits; and you may (2) the brand new claim the financial institution ignored within the an earlier lawsuit ‘s the exact same cause of action while the allege they asserts up against Countrywide Financial in the current lawsuit. With willingly overlooked that have bias says off control individual wrongdoing facing certainly multiple defendants for its individual proper factors, the bank may well not avoid the res judicata effects of their decision and sue the fresh new overlooked offender anew, once again alleging manage-person liability, in the dependence on the pendency ones same claims up against the kept stars in the 1st action payday loans Springville,AL.
I deal with because the real another accusations regarding Bank’s amended complaint with regards to examining the transaction retaining Countrywide Financial’s demurrer:
Judge of Attract, Basic Region, Office 5, Ca
Within the something called securitization, an organization originate[s] mortgages otherwise acquires people funds and you may aggregates them on an excellent equity pond or financing pond offered so you can a loan company named a great depositor. step one New depositor deal the brand new finance to a confidence, which in turn things licenses you to investors-for instance the Lender-can find. Will ultimately before , the lending company bought 95 home-based home loan-backed ties off individuals bonds buyers in 78 securitization trusts supported by domestic mortgages at a high price more than $thirteen.5 million dollars. The financial institution ordered permits inside four securitizations out-of Countrywide Securities Company (Countrywide Ties). CWALT, Inc. (CWALT) issued the new permits during the four securitizations. Nationwide Ties frequently approved the newest certificates in the 5th securitization. 2
For the , the financial institution prosecuted 7 bonds buyers and that given and you can offered the brand new 95 residential home loan-recognized ties, additionally the organizations which given the latest permits otherwise regulated among the many agencies that given the brand new licenses (Credit Suisse and/or Borrowing from the bank Suisse step). step three Brand new core of your Bank’s says is defendants made incorrect otherwise mistaken statements inside the offering documents awarded about the the new home-based home loan-supported ties the lending company ordered.
One of the defendants in the Borrowing from the bank Suisse was Nationwide Securities Agency, CWALT, and you may Countrywide Financial. Because related right here, the bank alleged: (1) Nationwide Bonds made false otherwise mistaken comments regarding purchases away from securities when you look at the solution regarding Companies Code parts 25401 and you can 25501 having value so you’re able to securitizations 74 owing to 78; 4 (2) Nationwide Securities and you may CWALT made incorrect or misleading statements in solution away from areas eleven and you can twelve of the Ties Act of 1933 (parts eleven & 12) when it comes to securitizations 75 courtesy 78; and you may (3) Countrywide Economic violated area fifteen of Bonds Operate (Point 15) predicated on its control of CWALT. Within the Area 15 allege against Nationwide Monetary, the bank so-called CWALT lived with no objective rather than receive and you will deposit money toward trusts. Not as much as Point fifteen ? Nationwide ? ergo is likely towards the Lender together and you can severally with, also to an equivalent the amount while the, CWALT.
Inside , the financial institution recorded the brand new problem in the step prior to you trying to erica Firm (declaratory save step). The financial institution wanted a beneficial erica Company-which had purchased Countrywide’s assets-try liable for one damage Countrywide was required to pay for the the financing Suisse step.