A135898
The fresh new trial judge finished res judicata banned Government Home loan Bank off San Francisco’s (the bank) allege against Nationwide Economic Organization (Nationwide Financial) and you may suffered Countrywide Financial’s demurrer for the first amended problem without get off to help you amend.
The financial institution is attractive. They contends the judge erred from the finishing res judicata banned the allege up against Countrywide Financial since [t]right here is no finally wisdom on deserves during the a past step that may enjoys considering go up to res judicata within this step. We disagree and you can affirm. I finish the brand new doctrine from res judicata taverns new Bank’s claim against Nationwide Economic while the: (1) the fresh new Bank’s volunteer dismissal of its allege up against Countrywide Financial in the previous step was a last wisdom on the merits; and you may (2) the latest claim the bank disregarded inside a past lawsuit ‘s the same cause for action as the allege it claims against Nationwide Monetary in today’s lawsuit. Having voluntarily dismissed that have prejudice claims from manage people wrongdoing against among multiple defendants for its very own strategic reasons, the financial institution will most likely not prevent the res judicata effects of their decision and you will sue the latest overlooked accused anew, once again alleging handle-individual accountability, during the reliance upon the brand new pendency of these exact same claims up against the kept actors in the first action.
We undertake since the true next accusations on the Bank’s revised issue for the true purpose of reviewing the transaction preserving Countrywide Financial’s demurrer:
Legal of Focus, Basic District, https://paydayloancolorado.net/center/ Section 5, California
For the a process called securitization, an organization originate[s] mortgage loans otherwise acquires those individuals funds and you will aggregates him or her toward an excellent guarantee pool otherwise loan pool offered to help you a financial institution named a beneficial depositor. step 1 The newest depositor offers the latest funds so you’re able to a trust, which then issues certificates you to buyers-like the Lender-can purchase. Will eventually ahead of , the financial institution bought 95 domestic mortgage-backed ties of individuals securities investors for the 78 securitization trusts supported by domestic mortgage loans at a high price of over $thirteen.5 billion bucks. The bank ordered licenses for the four securitizations from Nationwide Securities Company (Nationwide Ties). CWALT, Inc. (CWALT) given the new permits from inside the five securitizations. Countrywide Securities apparently approved the licenses regarding fifth securitization. 2
In , the financial institution sued seven bonds investors and therefore given and sold the fresh new 95 domestic mortgage-backed securities, while the organizations which approved the fresh new certificates otherwise controlled among the organizations you to definitely provided the new certificates (Borrowing Suisse and/or Borrowing from the bank Suisse step). 3 Brand new crux of your Bank’s states is defendants made false or misleading statements during the giving documents given to the the brand new domestic mortgage-recognized ties the bank ordered.
Among the many defendants into the Borrowing from the bank Suisse was indeed Nationwide Ties Company, CWALT, and you may Nationwide Monetary. Just like the related right here, the bank alleged: (1) Nationwide Bonds produced incorrect otherwise misleading statements throughout the sales off ties inside the citation out of Agencies Code areas 25401 and you can 25501 having regard to securitizations 74 using 78; cuatro (2) Countrywide Bonds and CWALT made untrue otherwise misleading statements in violation off sections 11 and you will several of your Ties Work out of 1933 (parts eleven & 12) with respect to securitizations 75 because of 78; and you may (3) Countrywide Monetary broken section 15 of your own Ties Act (Part fifteen) centered on their command over CWALT. In its Part 15 claim facing Countrywide Economic, the bank so-called CWALT resided for no goal than to discover and deposit funds to the trusts. Significantly less than Point 15 ? Countrywide ? ergo is likely for the Bank jointly and you can severally which have, also to a similar extent since, CWALT.
In the , the lending company recorded brand new ailment throughout the step in advance of you seeking erica Corporation (declaratory recovery action). The financial institution looked for good erica Corporation-which in fact had bought Countrywide’s possessions-try accountable for any problems Nationwide needed to spend when you look at the the credit Suisse action.