A135898
The fresh new trial judge ended res judicata barred Federal Home loan Lender away from San Francisco’s (the lending company) allege up against Nationwide Economic Enterprise (Countrywide Economic) and you may suffered Countrywide Financial’s demurrer toward earliest revised grievance instead get off to help you amend.
The lending company appeals. They argues new judge erred by the finishing res judicata prohibited its claim up against Nationwide Economic once the [t]right here is zero latest wisdom on deserves inside the a past action which will provides given increase to res judicata within action. I differ and you can affirm. I stop the brand new philosophy off res judicata bars the Bank’s allege against Countrywide Economic since the: (1) the fresh Bank’s volunteer dismissal of its claim up against Countrywide Financial into the the earlier action is a last judgment towards deserves; and (2) the fresh allege the bank ignored from inside the a previous suit ‘s the exact same cause of action due to the fact allege it claims against Nationwide Economic in the modern lawsuit. Having voluntarily overlooked having bias claims out of manage person wrongdoing against among multiple defendants for its individual proper factors, the bank may not steer clear of the res judicata outcomes of its decision and sue the new ignored defendant anew, once again alleging control-individual accountability, within the reliance on this new pendency of those same claims against the left actors in the first step.
I deal with because the real another allegations in the Bank’s revised ailment for the true purpose of reviewing the transaction sustaining Nationwide Financial’s demurrer:
Legal regarding Focus, Basic Area, Department 5, California
Into the a system entitled securitization, an entity originate[s] mortgage loans or acquires people loans and you can aggregates them on the an excellent security pool or financing pool on the market to a lender titled a great depositor. step 1 The brand new depositor carries the latest funds to a count on, which in turn issues certificates that investors-including the Financial-should buy. Will ultimately prior to , the bank purchased 95 home-based mortgage-supported securities of individuals ties buyers within the 78 securitization trusts supported by home-based mortgages at a price of over $thirteen.5 mil dollars. The lending company bought certificates inside five securitizations off Countrywide Ties Firm (Nationwide Bonds). CWALT, Inc. (CWALT) awarded the brand new licenses during the four securitizations. Nationwide Ties seem to granted the newest licenses throughout the 5th securitization. 2
From inside the , the bank prosecuted eight bonds people and that considering and you can ended up selling the new 95 domestic financial-backed ties, as well as the organizations hence provided the fresh licenses otherwise managed among organizations one to issued the fresh new permits (Borrowing Suisse or even the Borrowing Suisse step). step three The newest core of your Bank’s states is actually defendants produced false or misleading statements inside providing files issued to the brand new residential mortgage-supported securities the lending company bought.
One of the defendants into the Borrowing Suisse was in fact Countrywide Securities Company, CWALT, and Countrywide Monetary. Due to the fact associated here, the lending company so-called: (1) Countrywide Securities made incorrect otherwise mistaken statements regarding profit away from bonds in violation away from Companies Password areas 25401 and 25501 which have admiration to securitizations 74 as a result of 78; 4 (2) Countrywide https://paydayloancolorado.net/fraser/ Bonds and you can CWALT made incorrect otherwise mistaken comments for the solution regarding parts eleven and you can twelve of Bonds Work from 1933 (areas eleven & 12) regarding securitizations 75 thanks to 78; and you may (3) Countrywide Economic broken section 15 of Ties Operate (Part 15) according to its control over CWALT. In Point 15 allege facing Nationwide Economic, the financial institution so-called CWALT resided for no purpose than to discover and you will deposit loans on the trusts. Less than Section fifteen ? Countrywide ? hence is likely toward Lender together and you may severally having, and also to the same the total amount because, CWALT.
Inside , the lending company registered the brand new problem throughout the step ahead of all of us looking to erica Agency (declaratory recovery step). The lending company sought for a good erica Organization-which in fact had bought Countrywide’s assets-is liable for people injuries Nationwide had to pay when you look at the the financing Suisse step.