A135898
The latest demo legal ended res judicata banned Federal Financial Financial away from San Francisco’s (the lending company) allege against Countrywide Economic Company (Countrywide Monetary) and sustained Nationwide Financial’s demurrer into the earliest revised grievance without get-off in order to amend.
The bank appeals. They contends the fresh legal erred by the finishing res judicata prohibited the claim up against Countrywide Monetary because [t]here are no last judgment towards merits in a prior action that’ll features offered go up in order to res judicata in this step. We differ and affirm. We stop this new philosophy out-of res judicata pubs new Bank’s claim against Countrywide Monetary because: (1) the new Bank’s volunteer dismissal of their claim against Countrywide Monetary inside the the previous action was a last view towards merits; and (2) new claim the lending company overlooked in the a past suit is the same cause of step because claim they claims up against Nationwide Economic in the current suit. With voluntarily overlooked having bias states out-of manage individual wrongdoing facing certainly one of several defendants for the individual strategic reasons, the lending company may not avoid the res judicata consequences of their choice and sue loans Madrid this new overlooked defendant anew, once again alleging control-individual liability, when you look at the dependence on the newest pendency of them same says from the remaining actors in the 1st step.
I deal with because genuine next accusations throughout the Bank’s revised issue for the true purpose of evaluating the order sustaining Nationwide Financial’s demurrer:
Judge regarding Appeal, Very first Area, Office 5, Ca
In a process entitled securitization, an entity originate[s] mortgages otherwise acquires the individuals finance and aggregates them to the an effective equity pool otherwise mortgage pond offered so you’re able to a lender entitled a beneficial depositor. 1 The fresh depositor offers the new loans in order to a confidence, which in turn points certificates one people-for instance the Bank-can find. Will eventually just before , the bank ordered 95 home-based financial-recognized ties of various bonds people inside the 78 securitization trusts supported by home-based mortgage loans at a cost more than $thirteen.5 mil bucks. The lending company ordered certificates in the four securitizations away from Nationwide Bonds Corporation (Nationwide Bonds). CWALT, Inc. (CWALT) issued the certificates in the five securitizations. Nationwide Bonds seem to issued the permits on fifth securitization. 2
In the , the bank prosecuted 7 bonds dealers and that given and you will ended up selling the fresh new 95 residential mortgage-recognized ties, while the organizations which granted the new certificates or managed one of many entities that approved the fresh licenses (Credit Suisse or perhaps the Credit Suisse step). step 3 New crux of your own Bank’s states was defendants produced not true otherwise misleading comments in providing data given to the the fresh domestic mortgage-recognized ties the financial institution purchased.
Among defendants inside the Borrowing Suisse was Nationwide Securities Corporation, CWALT, and you can Countrywide Monetary. Due to the fact related here, the financial institution alleged: (1) Countrywide Ties produced false or misleading statements throughout the profit off ties in citation from Providers Code areas 25401 and 25501 that have esteem to help you securitizations 74 as a consequence of 78; cuatro (2) Nationwide Ties and you may CWALT made false otherwise mistaken statements inside the violation of areas 11 and you can twelve of your Ties Operate away from 1933 (sections 11 & 12) regarding securitizations 75 due to 78; and you will (3) Countrywide Financial violated section 15 of Ties Work (Part 15) according to their power over CWALT. With its Section 15 allege facing Nationwide Monetary, the financial institution alleged CWALT lived with no purpose rather than receive and you may deposit fund with the trusts. Below Section 15 ? Nationwide ? ergo is liable toward Financial as you and you can severally that have, and the same extent because the, CWALT.
In , the bank recorded the newest grievance regarding the action before united states looking to erica Agency (declaratory recovery step). The lending company looked for a good erica Company-which had purchased Countrywide’s property-try liable for any damages Countrywide needed to spend into the the financing Suisse action.