A135898

The latest demonstration courtroom finished res judicata barred Government Home loan Financial away from San Francisco’s (the financial institution) allege against Nationwide Economic Company (Nationwide Monetary) and you will suffered Countrywide Financial’s demurrer with the earliest amended ailment instead of leave so you can amend.

The bank appeals. They argues brand new judge erred because of the finishing res judicata banned their allege facing Countrywide Economic just like the [t]right here is actually zero last view toward deserves when you look at the a past step that’ll have offered increase so you can res judicata in this step. I differ and you may affirm. I finish new philosophy from res judicata bars the latest Bank’s claim against Countrywide Financial as the: (1) the newest Bank’s volunteer dismissal of the allege facing Nationwide Financial inside the the prior action was a last judgment on the merits; and (2) new allege the bank ignored when you look at the a past suit is the exact same cause of step since the allege they asserts up against Nationwide Monetary in today’s suit. That have voluntarily disregarded which have bias claims from handle people wrongdoing facing certainly one of numerous defendants because of its own proper causes, the financial institution will most likely not avoid the res judicata effects of its decision and you will sue the fresh new ignored offender anew, once more alleging handle-individual liability, within the dependence on the new pendency of those exact same claims contrary to the leftover actors in the first action.

We deal with because the genuine the next accusations regarding Bank’s revised criticism for the true purpose of reviewing the transaction retaining Countrywide Financial’s demurrer:

Court of Interest, Very first Section, Office 5, California

Inside a system called securitization, an entity originate[s] mortgage loans otherwise acquires people finance and aggregates them with the a beneficial equity pond or loan pool obtainable so you can a financial institution titled an effective depositor. 1 The new depositor deal the fresh finance so you’re able to a confidence, which then activities permits you to definitely traders-including the Financial-can find. Will ultimately before , the lending company bought 95 home-based financial-supported ties out-of certain ties dealers inside the 78 securitization trusts backed by home-based mortgage loans at a price of over $thirteen.5 million bucks. The bank purchased permits when you look at the four securitizations of Countrywide Bonds Firm (Countrywide Ties). CWALT, Inc. (CWALT) given the fresh new permits in four securitizations. Countrywide Ties seem to provided the latest permits on 5th securitization. 2

When you look at the , the financial institution charged 7 securities investors and that offered and you may marketed new 95 residential financial-recognized bonds, plus the entities which issued the brand new certificates otherwise managed among the many entities that approved the latest permits (Borrowing from the bank Suisse or even the Borrowing from the bank Suisse step). step 3 Brand new crux of one’s Bank’s states are defendants generated incorrect otherwise mistaken comments when you look at the offering data files approved to the the newest domestic mortgage-recognized ties the financial institution ordered.

Among the defendants in Credit Suisse was indeed Nationwide Ties Agency, CWALT, and Nationwide Monetary. Just like the relevant right here, the bank alleged: (1) Countrywide Securities made untrue or mistaken statements throughout the business from securities into the admission off Businesses Password areas 25401 and you can 25501 having respect in order to securitizations 74 because of 78; 4 (2) Nationwide Securities payday loan Mckenzie and you may CWALT made untrue or mistaken comments when you look at the pass from areas eleven and you will twelve of Bonds Act regarding 1933 (parts 11 & 12) when it comes to securitizations 75 compliment of 78; and you may (3) Nationwide Monetary broken section fifteen of Securities Act (Area fifteen) predicated on the control over CWALT. Within its Area fifteen allege up against Countrywide Monetary, the financial institution so-called CWALT stayed with no purpose than to receive and put financing on the trusts. Significantly less than Section fifteen ? Nationwide ? ergo is liable into Bank as one and severally that have, and also to the same the total amount just like the, CWALT.

Within the , the bank recorded the new problem from the step in advance of united states looking to erica Agency (declaratory rescue step). The lending company looked for a good erica Company-which in fact had purchased Countrywide’s possessions-are accountable for any damage Countrywide must shell out when you look at the the financing Suisse step.