Government Financial Lender Regarding Bay area v. Nationwide Monetary Organization

A135898

The latest demo courtroom concluded res judicata banned Government Mortgage Financial from San Francisco’s (the lending company) allege against Countrywide Economic Enterprise (Countrywide Economic) and you can suffered Nationwide Financial’s demurrer to the first amended grievance in the place of leave in order to amend.

The lending company appeals. They contends the fresh new courtroom erred by finishing res judicata barred its allege against Countrywide Monetary because the [t]right here try no finally wisdom for the deserves in a prior step which could keeps offered rise in order to res judicata within step. We disagree and you may affirm. We ending the latest philosophy away from res judicata bars the new Bank’s allege facing Nationwide Economic due to the fact: (1) the brand new Bank’s volunteer dismissal of its allege facing Nationwide Financial during the the last action was a last wisdom towards merits; and you can (2) the latest claim the bank disregarded from inside the an earlier lawsuit is the exact same reason behind step since allege they asserts against Countrywide Financial in the present suit. That have voluntarily dismissed which have bias states out-of manage individual wrongdoing up against one of numerous defendants for its individual proper causes, the lending company will most likely not prevent the res judicata outcomes of their choice and you can sue the new disregarded defendant anew, once again alleging handle-person accountability, for the reliance upon the pendency of them exact same claims resistant to the remaining stars in the first step.

I take on given that real another allegations in the Bank’s revised grievance with regards to reviewing the order sustaining Nationwide Financial’s demurrer:

Courtroom of Notice, Earliest Area, Section 5, California

In the something called securitization, an entity originate[s] mortgages or acquires men and women finance and you may aggregates them towards the good collateral pond otherwise mortgage pool available to a lending institution called an excellent depositor. 1 The fresh new depositor carries new funds to help you a believe, which in turn things permits that buyers-such as the Financial-can buy. Will eventually just before , the financial institution ordered 95 home-based mortgage-backed bonds off individuals bonds dealers when you look at the 78 securitization trusts backed by home-based mortgages at a cost more than $thirteen.5 billion bucks. The lending company ordered licenses during the four securitizations off Countrywide Ties Enterprise (Countrywide Securities). CWALT, Inc. (CWALT) approved the brand new licenses into the five securitizations. Countrywide Securities seem to given the brand new licenses on the fifth securitization. 2

For the , the lending company charged seven securities people and this given and you can ended up selling the brand new 95 residential financial-supported ties, therefore the agencies hence issued the fresh licenses otherwise regulated one of many agencies you to definitely issued the latest permits (Borrowing from the bank Suisse or even the Borrowing Suisse action). 3 The new crux of your Bank’s says is defendants made not the case otherwise mistaken comments for the giving files approved concerning the the latest home-based mortgage-supported bonds the lending company bought.

One of many defendants in the Credit Suisse have been Countrywide Bonds Organization, CWALT, and you will Nationwide Monetary. While the relevant here, the lending company so-called: (1) Countrywide Securities generated false otherwise mistaken comments on the deals out of bonds within the pass away from Businesses Password areas 25401 and you may 25501 which have esteem so you can securitizations 74 courtesy 78; 4 (2) Nationwide Bonds and CWALT produced not the West End Cobb Town loans case otherwise mistaken statements for the pass out of parts eleven and you can 12 of Securities Operate out-of 1933 (areas eleven & 12) with regards to securitizations 75 courtesy 78; and (3) Countrywide Monetary broken point 15 of your own Securities Act (Part 15) considering the control over CWALT. Within the Area 15 claim against Countrywide Financial, the bank so-called CWALT stayed with no mission rather than receive and you may deposit fund to the trusts. Around Area 15 ? Countrywide ? therefore is likely to the Bank jointly and you can severally having, and also to a similar the total amount due to the fact, CWALT.

Inside the , the lending company registered the latest grievance throughout the action ahead of us trying to erica Agency (declaratory relief action). The lending company wanted an excellent erica Business-which had ordered Countrywide’s possessions-is actually responsible for any damages Countrywide was required to spend from inside the the credit Suisse action.