A135898
The fresh trial court ended res judicata barred Federal Mortgage Lender out of San Francisco’s (the lending company) claim facing Countrywide Financial Organization (Countrywide Economic) and you may suffered Countrywide Financial’s demurrer on the basic revised problem in the place of hop out to help you amend.
The financial institution is attractive. It contends new judge erred because of the finishing res judicata banned the claim up against Nationwide Economic as the [t]right here is zero finally wisdom on the merits during the a previous step which will enjoys offered rise so you’re able to res judicata contained in this step. We differ and you can affirm. We conclude new philosophy out of res judicata taverns the latest Bank’s claim up against Countrywide Economic since the: (1) the newest Bank’s voluntary dismissal of the claim facing Nationwide Economic inside the previous step try a final judgment towards the merits; and you can (2) new claim the lending company disregarded when you look at the an earlier lawsuit is the same cause of action since the claim they asserts against Countrywide Economic in the current suit. With willingly overlooked that have prejudice says out-of control individual wrongdoing up against certainly multiple defendants for its own strategic reasons, the financial institution may well not steer clear of the res judicata outcomes of the choice and you can sue the fresh overlooked accused anew, once more alleging manage-people responsibility, into the reliance on the latest pendency of those exact same states contrary to the remaining stars in the 1st step.
We undertake because the true next allegations in the Bank’s revised ailment for the intended purpose of reviewing the order preserving Countrywide Financial’s demurrer:
Judge from Interest, Earliest Section, Division 5, Ca
From inside the a process entitled securitization, an entity originate[s] mortgage loans or acquires men and women funds and you may aggregates them for the an effective security pond or loan pond offered so you can a lender called a depositor. 1 New depositor carries the new financing so you’re able to a confidence, which then circumstances permits you to people-for instance the Lender-should buy. At some point prior to , the bank ordered 95 residential home loan-supported securities from some bonds investors in the 78 securitization trusts supported by residential mortgage loans at a cost of over $13.5 million cash. The lending company purchased certificates in the four securitizations from Countrywide Ties Organization (Countrywide Ties). CWALT, Inc. (CWALT) issued the fresh new licenses into the five securitizations. Nationwide Ties frequently approved brand new permits on the 5th securitization. 2
Within the , the lending company sued eight bonds buyers and this provided and offered this new 95 domestic mortgage-backed ties, as well as the organizations and this awarded the licenses otherwise managed one of the agencies one issued the latest permits (Borrowing from the bank Suisse or the Credit Suisse action). step 3 The fresh core of your own Bank’s claims are defendants made not true otherwise mistaken comments within the offering files issued concerning the the fresh new home-based financial-backed bonds the lending company purchased.
Among the many defendants when you look at the Borrowing from the bank Suisse were Countrywide Securities Corporation, CWALT, and you can Nationwide Financial. Since relevant here, the bank alleged: (1) Countrywide Securities made untrue otherwise misleading comments on the purchases regarding securities within the pass from Organizations Code areas 25401 and 25501 having admiration in order to securitizations 74 through 78; cuatro (2) Countrywide Bonds and you will CWALT produced untrue otherwise misleading statements from inside the violation https://paydayloanalabama.com/pollard/ out-of parts 11 and you will twelve of Ties Operate out-of 1933 (sections 11 & 12) regarding securitizations 75 through 78; and you can (3) Countrywide Monetary violated section 15 of one’s Securities Operate (Point fifteen) considering their control of CWALT. In Area 15 claim facing Nationwide Economic, the bank so-called CWALT resided for no purpose than to discover and you can put money on trusts. Less than Area 15 ? Countrywide ? ergo is likely on the Bank together and severally that have, and to an identical extent as the, CWALT.
In , the financial institution submitted brand new criticism about action before us trying to erica Business (declaratory relief step). The financial institution sought an effective erica Corporation-which had purchased Countrywide’s property-is accountable for people problems Nationwide needed to spend during the the financing Suisse action.
