A135898
The latest demo legal finished res judicata banned Federal Financial Bank out of San Francisco’s (the financial institution) allege facing Countrywide Economic Organization (Countrywide Economic) and you can suffered Countrywide Financial’s demurrer with the very first amended criticism instead of hop out so you’re able to amend.
The lending company appeals. It contends the new judge erred from the concluding res judicata prohibited its claim up against Nationwide Economic since [t]here was zero latest wisdom toward merits from inside the a past action that could features given go up to res judicata within step. We disagree and you can affirm. I end the newest doctrine out of res judicata bars the brand new Bank’s allege against Nationwide Financial since: (1) the fresh Bank’s voluntary dismissal of its allege against Countrywide Economic in the the earlier step is a final view to your deserves; and (2) the brand new claim the financial institution overlooked when you look at the a prior lawsuit ‘s the exact same reason for action because claim it asserts against Countrywide Financial in the modern lawsuit. That have willingly disregarded having bias says away from handle person wrongdoing up against among numerous defendants for the very own proper explanations, the bank may well not steer clear of the res judicata consequences of their decision and you will sue the latest ignored accused anew, once again alleging control-person accountability, inside the reliance on the fresh pendency of these exact same says against the left stars in the 1st action.
We take on because genuine the second allegations regarding the Bank’s amended complaint for the true purpose of reviewing your order retaining Nationwide Financial’s demurrer:
Court regarding Notice, Basic Region, Office 5, Ca
Into the a process named securitization, an entity originate[s] mortgages otherwise acquires those loans and aggregates them towards the an effective collateral pool otherwise financing pond for sale so you’re able to a payday loans Glenwood Springs lending institution named a beneficial depositor. step 1 The newest depositor sells the latest loans so you’re able to a confidence, which then factors licenses that investors-for instance the Bank-can buy. Will ultimately just before , the bank ordered 95 home-based mortgage-supported bonds off certain ties investors into the 78 securitization trusts supported by home-based mortgage loans at a high price more than $thirteen.5 mil cash. The financial institution bought certificates during the four securitizations off Nationwide Securities Agency (Nationwide Bonds). CWALT, Inc. (CWALT) approved the latest permits in five securitizations. Nationwide Ties apparently issued the brand new permits throughout the 5th securitization. 2
During the , the financial institution prosecuted 7 bonds investors and that provided and you may offered new 95 domestic home loan-recognized securities, additionally the entities and therefore provided the fresh permits or regulated among organizations one awarded the newest licenses (Credit Suisse and/or Borrowing from the bank Suisse step). 3 The newest crux of your own Bank’s states was defendants generated not true or mistaken statements when you look at the offering documents provided concerning the new residential home loan-supported bonds the financial institution ordered.
Among defendants into the Borrowing from the bank Suisse have been Countrywide Securities Business, CWALT, and you can Countrywide Monetary. Just like the relevant right here, the lending company so-called: (1) Countrywide Securities produced not the case otherwise misleading statements on the marketing from securities inside ticket off Enterprises Code sections 25401 and you may 25501 that have regard so you’re able to securitizations 74 compliment of 78; cuatro (2) Nationwide Bonds and you will CWALT generated incorrect or misleading comments in the citation out-of areas 11 and you may several of one’s Securities Operate off 1933 (sections eleven & 12) with respect to securitizations 75 owing to 78; and you can (3) Nationwide Monetary violated part 15 of the Bonds Act (Point 15) considering its control over CWALT. Within its Part fifteen claim facing Countrywide Monetary, the financial institution so-called CWALT lived for no objective than to discover and you will deposit funds on the trusts. Lower than Point 15 ? Nationwide ? ergo is liable to your Lender together and you may severally having, and an identical the amount given that, CWALT.
During the , the bank submitted new problem regarding step ahead of us seeking to erica Firm (declaratory relief step). The bank sought a erica Agency-which had ordered Countrywide’s assets-is accountable for any problems Countrywide had to pay in the the credit Suisse step.