Federal Mortgage Lender Away from San francisco bay area v. Nationwide Economic Agency
A135898
Brand new trial courtroom concluded res judicata barred Federal Home loan Bank off San Francisco’s (the bank) allege facing Countrywide Financial Business (Countrywide Financial) and you may sustained Countrywide Financial’s demurrer towards the very first revised grievance instead leave in order to amend.
The financial institution is attractive. It contends the new courtroom erred because of the concluding res judicata banned the allege up against Countrywide Monetary because the [t]right here are zero finally view towards the merits during the a prior step that may keeps considering rise so you’re able to res judicata inside step. I disagree and you can affirm. We ending new doctrine away from res judicata pubs the Bank’s allege up against Countrywide Economic as: (1) new Bank’s volunteer dismissal of the allege against Nationwide Financial into the the last step is a final wisdom into the deserves; and (2) brand new allege the financial institution dismissed inside a past lawsuit ‘s the exact same cause for action since the allege it asserts up against Countrywide Economic in today’s lawsuit. Having voluntarily disregarded with prejudice states of control person wrongdoing up against certainly one of numerous defendants for its individual strategic explanations, the bank may not avoid the res judicata consequences of their decision and you can sue the brand new dismissed offender anew, once again alleging manage-person liability, from inside the reliance on the fresh pendency of these same claims contrary to the leftover stars in the 1st step.
I take on just like the real next allegations in the Bank’s revised ailment with regards to examining the order sustaining Countrywide Financial’s demurrer:
Judge regarding Focus, Basic Area, Department 5, California
Inside the something called securitization, an organization originate[s] mortgages otherwise acquires men and women financing and you may aggregates her or him into a guarantee pond or loan pool for sale to help you a financial institution called an effective depositor. step one The loans Piedmont fresh depositor sells the fresh money to help you a confidence, which in turn products permits one dealers-for instance the Financial-should buy. Will ultimately before , the lending company purchased 95 home-based financial-recognized securities regarding various ties traders for the 78 securitization trusts supported by residential mortgage loans at a high price more than $13.5 mil cash. The bank ordered licenses inside the five securitizations off Countrywide Bonds Organization (Countrywide Ties). CWALT, Inc. (CWALT) awarded this new permits into the five securitizations. Countrywide Securities seem to awarded this new permits on the 5th securitization. dos
In , the financial institution prosecuted eight bonds dealers which considering and you may marketed the brand new 95 home-based mortgage-supported securities, and also the organizations and that provided the licenses otherwise regulated one of the agencies one granted the fresh permits (Borrowing Suisse or the Borrowing Suisse action). step 3 New core of Bank’s states try defendants generated not true otherwise mistaken comments for the providing records issued regarding the the newest domestic home loan-backed bonds the financial institution purchased.
Among defendants into the Borrowing from the bank Suisse was Countrywide Securities Business, CWALT, and you will Nationwide Financial. Since related here, the lending company so-called: (1) Countrywide Ties generated untrue or mistaken statements regarding sales out-of bonds inside the solution from Agencies Code areas 25401 and 25501 that have esteem to securitizations 74 using 78; cuatro (2) Countrywide Bonds and you will CWALT produced not the case or misleading comments for the citation out of sections eleven and twelve of your own Securities Work from 1933 (parts eleven & 12) with respect to securitizations 75 compliment of 78; and you can (3) Nationwide Monetary violated point 15 of one’s Securities Operate (Area 15) predicated on their control of CWALT. Within the Point 15 claim up against Countrywide Economic, the financial institution alleged CWALT resided with no mission than to discover and put funds to the trusts. Less than Area 15 ? Nationwide ? for this reason is liable to your Lender as one and you may severally that have, in order to an equivalent extent as the, CWALT.
In , the lending company registered the newest grievance on the step before you seeking to erica Agency (declaratory recovery action). The financial institution sought a beneficial erica Agency-which in fact had ordered Countrywide’s possessions-is accountable for people damage Nationwide was required to spend during the the financing Suisse step.