A135898
The fresh new trial judge ended res judicata barred Government Financial Bank away from San Francisco’s (the bank) allege facing Countrywide Economic Company (Nationwide Financial) and you may sustained Nationwide Financial’s demurrer with the earliest revised ailment instead leave to amend.
The financial institution appeals. They argues brand new judge erred from the finishing res judicata prohibited its claim up against Nationwide Financial just like the [t]right here try zero latest wisdom toward merits during the an earlier action that could possess considering increase so you can res judicata within this action. I differ and you may affirm. We finish the fresh doctrine out-of res judicata pubs brand new Bank’s claim facing Nationwide Economic given that: (1) the Bank’s volunteer dismissal of the allege facing Countrywide Monetary during the the prior action is a final view towards the merits; and (2) this new claim the financial institution dismissed when you look at the an earlier lawsuit ‘s the same reason behind action since the claim they asserts up against Nationwide Economic in the modern lawsuit. That have voluntarily disregarded having prejudice says from handle individual wrongdoing facing among numerous defendants for the individual strategic causes, the bank may well not prevent the res judicata effects of their decision and you will sue the brand new dismissed offender anew, once again alleging control-people liability, inside reliance upon the newest pendency of these exact same claims from the leftover actors in the 1st step.
We deal with because correct the second allegations about Bank’s revised criticism with regards to looking at the transaction sustaining Countrywide Financial’s demurrer:
Judge away from Focus, First Section, Section 5, Ca
When you look at the a method called securitization, an organization originate[s] mortgage loans or acquires those people finance and you will aggregates her or him to the a beneficial collateral pool otherwise financing pond obtainable to a lender named a good depositor. step one The fresh new depositor sells the funds so you can a rely on, which in turn items permits you to definitely people-including the Bank-can purchase. Will eventually prior to , the bank bought 95 home-based home loan-recognized securities regarding some bonds payday loan Mulga investors for the 78 securitization trusts backed by domestic mortgages at a high price more than $thirteen.5 million cash. The lending company bought certificates in the four securitizations of Nationwide Ties Organization (Countrywide Bonds). CWALT, Inc. (CWALT) awarded new licenses from inside the five securitizations. Countrywide Bonds frequently approved this new licenses on fifth securitization. dos
When you look at the , the bank sued seven ties dealers hence given and you can offered the fresh 95 domestic financial-recognized securities, and organizations which provided brand new permits otherwise managed among the entities that provided brand new licenses (Borrowing Suisse or even the Borrowing Suisse action). 3 New core of one’s Bank’s says is defendants generated not true or mistaken comments for the giving files given concerning the fresh domestic financial-supported securities the lending company ordered.
Among defendants into the Borrowing Suisse was basically Nationwide Securities Agency, CWALT, and Countrywide Financial. Since the relevant here, the bank so-called: (1) Nationwide Bonds generated false or misleading comments throughout the sales regarding ties in the pass out-of Organizations Code sections 25401 and you may 25501 with admiration in order to securitizations 74 due to 78; cuatro (2) Nationwide Bonds and you will CWALT produced false or mistaken statements when you look at the pass from sections 11 and you will several of your Securities Act out-of 1933 (sections 11 & 12) with respect to securitizations 75 by way of 78; and you can (3) Nationwide Economic violated section 15 of your own Bonds Work (Section fifteen) considering the command over CWALT. In Point fifteen allege up against Nationwide Financial, the bank alleged CWALT resided with no objective than to discovered and put loans into the trusts. Under Section 15 ? Countrywide ? therefore is likely toward Bank as one and severally with, and to an equivalent extent as the, CWALT.
Within the , the lending company filed the fresh new grievance on action in advance of united states seeking to erica Enterprise (declaratory recovery action). The bank sought a great erica Enterprise-which had purchased Countrywide’s assets-try accountable for people problems Countrywide needed to pay within the the credit Suisse action.