Government Mortgage Bank Of San francisco bay area v. Countrywide Monetary Firm
A135898
The fresh new trial judge finished res judicata barred Federal Mortgage Lender away from San Francisco’s (the bank) claim against Nationwide Economic Corporation (Countrywide Financial) and you will suffered Nationwide Financial’s demurrer to the earliest revised grievance versus hop out to help you amend.
The bank is attractive. It argues the fresh legal erred because of the finishing res judicata barred their claim up against Nationwide Economic just like the [t]here is actually zero last judgment towards deserves inside the an earlier step which will enjoys provided increase to res judicata inside step. We differ and you will affirm. We end this new philosophy out-of res judicata taverns the fresh new Bank’s allege facing Nationwide Financial given that: (1) the latest Bank’s voluntary dismissal of their allege up against Countrywide Economic in the the earlier step is a final view to your merits; and you will (2) the claim the bank overlooked for the an earlier suit ‘s the exact same cause of step while the allege it claims against Nationwide Monetary in today’s lawsuit. Which have voluntarily overlooked with prejudice states of control people wrongdoing against certainly several defendants for the very own strategic explanations, the bank will most likely not avoid the res judicata consequences of their choice and you may sue the brand new overlooked accused anew, again alleging handle-individual accountability, in reliance on the newest pendency of those exact same says against the left actors in the 1st action.
I undertake just like the true another allegations throughout the Bank’s revised grievance for the purpose of reviewing the transaction retaining Countrywide Financial’s demurrer:
Courtroom from Desire, First District, Division 5, Ca
When you look at the a process called securitization, an entity originate[s] mortgages or acquires those fund and you may aggregates her or him toward an excellent security pond otherwise financing pond offered so you’re able to a lending institution named good depositor. 1 The fresh new depositor offers the fresh finance to help you a depend on, which in turn things certificates one to investors-like the Lender-should buy. At some point before , the financial institution purchased 95 home-based home loan-recognized ties away from certain securities people for the 78 securitization trusts backed by home-based mortgages at a cost more than $13.5 million cash. The lending company ordered licenses into the five securitizations regarding Nationwide Securities Agency (Nationwide Securities). CWALT, Inc. (CWALT) granted the brand new licenses during the five securitizations. Countrywide Bonds seem to granted the new permits on 5th securitization. 2
Inside the , the lending company charged 7 bonds traders hence provided and offered the brand new 95 domestic financial-supported ties, plus the organizations and this awarded brand new certificates or managed one of the agencies one provided the brand new certificates (Borrowing from the bank Suisse or perhaps the Borrowing Suisse action). 3 The newest crux of Bank’s states was defendants made false otherwise misleading comments inside giving data files granted to the new home-based mortgage-backed ties the financial institution bought.
One of many defendants during the Credit Suisse have been Countrywide Securities Firm, CWALT, and Countrywide Monetary. Due to the fact relevant right here, the lending company so-called: (1) Nationwide Ties made not true or mistaken statements on marketing out-of ties during the solution from Agencies Code sections 25401 and 25501 which have value to help you securitizations 74 compliment of 78; cuatro (2) Nationwide Bonds and you can CWALT produced not the case or mistaken comments within the solution away from areas 11 and you can 12 of your Securities Work regarding 1933 (parts eleven & 12) with respect to securitizations 75 as a result of 78; and you will (3) Countrywide Financial broken area fifteen of your own Securities Operate (Area 15) predicated on the command over CWALT. In Point 15 allege up against Nationwide Financial, the bank alleged CWALT lived with no purpose rather than discover and you can put funds on trusts. Below Point fifteen ? Countrywide ? therefore is likely on the Financial as you and you may severally which have, in order to an identical the amount since, CWALT.
Within the , the lending company registered the fresh new issue from the action prior to united states trying erica Agency (declaratory relief step). The financial institution wanted good erica Corporation-which in fact had purchased Countrywide’s property-was liable for people problems Countrywide must pay in the the financing Suisse step.
