Federal Home loan Lender Off Bay area v. Countrywide Monetary Organization

A135898

The brand new demonstration judge ended res judicata prohibited Government Financial Lender out-of San Francisco’s (the lending company) claim facing Nationwide Financial Corporation (Countrywide Economic) and you may suffered Nationwide Financial’s demurrer towards the very first amended problem in the place of leave to help you amend.

The bank is attractive. They argues new court erred of the concluding res judicata barred their allege facing Countrywide Economic given that [t]right here was no latest wisdom on the deserves when you look at the https://paydayloancolorado.net/genoa/ a prior action that may keeps offered increase to res judicata within this step. We disagree and you can affirm. We conclude the brand new doctrine from res judicata pubs this new Bank’s claim up against Nationwide Financial once the: (1) this new Bank’s voluntary dismissal of the allege against Nationwide Monetary inside the the prior action are a final wisdom into the deserves; and you may (2) the allege the financial institution disregarded inside an earlier lawsuit is the exact same reason for step since claim it claims up against Countrywide Financial in today’s lawsuit. Having voluntarily overlooked having bias claims off handle person wrongdoing facing among numerous defendants for its individual strategic grounds, the bank may well not steer clear of the res judicata consequences of its decision and you may sue new ignored defendant anew, once again alleging manage-person liability, when you look at the reliance on the newest pendency of those exact same claims against the leftover stars in the first action.

I undertake as the genuine another allegations on Bank’s amended complaint for the purpose of reviewing your order retaining Nationwide Financial’s demurrer:

Courtroom from Focus, Basic Region, Section 5, Ca

Into the a method entitled securitization, an entity originate[s] mortgage loans or acquires men and women finance and you may aggregates them toward a good security pond or mortgage pond on the market so you can a loan company entitled a beneficial depositor. step one Brand new depositor offers the newest money to help you a depend on, which in turn facts licenses you to traders-like the Financial-can buy. At some point prior to , the bank bought 95 domestic home loan-backed bonds of certain bonds buyers in 78 securitization trusts supported by domestic mortgages at a price more than $thirteen.5 mil cash. The financial institution ordered certificates for the five securitizations out of Nationwide Ties Corporation (Nationwide Ties). CWALT, Inc. (CWALT) given the newest licenses for the five securitizations. Nationwide Ties appear to given this new permits on 5th securitization. 2

In the , the bank sued eight securities buyers and this considering and you may marketed new 95 domestic mortgage-recognized ties, and also the organizations and this provided the latest licenses or regulated among the many organizations you to awarded the fresh new certificates (Borrowing Suisse or perhaps the Credit Suisse step). step three The fresh new crux of your Bank’s claims is actually defendants produced not true or mistaken comments into the offering files provided regarding the the new domestic financial-supported securities the bank purchased.

Among the many defendants during the Borrowing Suisse was basically Countrywide Bonds Business, CWALT, and you may Countrywide Financial. Once the associated here, the financial institution so-called: (1) Countrywide Bonds made incorrect or mistaken comments on the revenue out of securities inside violation out-of Enterprises Code areas 25401 and 25501 having esteem to help you securitizations 74 owing to 78; 4 (2) Countrywide Bonds and you can CWALT generated false otherwise mistaken statements inside the pass out-of sections 11 and you can 12 of your own Securities Act away from 1933 (parts eleven & 12) in terms of securitizations 75 compliment of 78; and you will (3) Countrywide Monetary broken area fifteen of your own Securities Work (Area fifteen) according to their command over CWALT. With its Part 15 claim against Countrywide Economic, the bank alleged CWALT lived with no mission than to located and you can deposit funds on the trusts. Not as much as Section fifteen ? Nationwide ? hence is likely towards Lender together and you can severally which have, in order to a similar the total amount once the, CWALT.

Into the , the bank registered brand new ailment throughout the step before all of us trying erica Organization (declaratory rescue step). The lending company sought for a erica Company-which in fact had ordered Countrywide’s property-is actually liable for any problems Countrywide had to pay in the the credit Suisse step.