Government Financial Financial Regarding San francisco v. Nationwide Economic Business

A135898

The fresh new demonstration courtroom concluded res judicata banned Government Home loan Lender off San Francisco’s (the bank) allege facing Nationwide Economic Corporation (Countrywide Financial) and you will sustained Nationwide Financial’s demurrer to your very first revised issue instead of log off so you can amend.

The bank is attractive. It contends the courtroom erred from the finishing res judicata prohibited their claim facing Countrywide Monetary because [t]here are no finally wisdom into the merits inside a previous action that will have considering go up to help you res judicata inside step. I differ and you may affirm. I end the philosophy from res judicata taverns the latest Bank’s claim up against Countrywide Economic since the: (1) the newest Bank’s volunteer dismissal of its allege up against Nationwide Economic in the previous action was a final view on merits; and (2) brand new claim the lending company overlooked inside the a prior suit ‘s the exact same cause for action since the claim it asserts up against Nationwide Monetary in today’s suit. Having willingly overlooked having bias claims of handle person wrongdoing against one of several defendants for its individual proper causes, the financial institution may not avoid the res judicata consequences of its decision and you will sue the fresh new dismissed accused anew, once more alleging manage-individual liability, during the reliance on the latest pendency of those exact same states from the remaining stars in the first action.

I accept just like the genuine the following allegations in the Bank’s revised grievance for the true purpose of reviewing the transaction sustaining Countrywide Financial’s demurrer:

Legal from Notice, Basic Area, Department 5, California

During the a method entitled securitization, an organization originate[s] mortgage loans or acquires men and women finance and you can aggregates her or him toward good security pool or mortgage pool offered so you the weblink can a lender entitled a depositor. 1 The fresh new depositor carries the fresh loans so you’re able to a confidence, which then situations licenses you to definitely traders-including the Bank-can buy. At some point just before , the financial institution ordered 95 home-based financial-backed bonds away from individuals bonds buyers into the 78 securitization trusts backed by domestic mortgages at a price more than $thirteen.5 mil bucks. The financial institution purchased permits in the four securitizations regarding Countrywide Ties Company (Nationwide Bonds). CWALT, Inc. (CWALT) given the new licenses within the four securitizations. Countrywide Bonds frequently given the brand new licenses regarding fifth securitization. 2

For the , the financial institution charged 7 securities traders and therefore offered and you will marketed the brand new 95 residential mortgage-backed securities, therefore the organizations hence approved the licenses otherwise regulated one of the organizations that issued the new permits (Borrowing from the bank Suisse or perhaps the Borrowing from the bank Suisse action). step three The fresh core of one’s Bank’s says try defendants generated incorrect otherwise mistaken statements in the giving documents provided concerning this new home-based mortgage-recognized bonds the lending company bought.

Among the defendants inside Borrowing Suisse was in fact Nationwide Securities Business, CWALT, and you will Countrywide Financial. Because the associated here, the lending company so-called: (1) Countrywide Ties generated not the case or mistaken comments about selling of bonds within the violation of Providers Password areas 25401 and you can 25501 which have regard so you can securitizations 74 by way of 78; 4 (2) Nationwide Securities and you may CWALT produced incorrect otherwise misleading comments inside citation away from parts 11 and twelve of Bonds Work away from 1933 (parts eleven & 12) in terms of securitizations 75 using 78; and you will (3) Countrywide Monetary violated part 15 of Bonds Act (Part fifteen) considering the command over CWALT. Within the Section 15 allege facing Countrywide Economic, the financial institution alleged CWALT stayed for no purpose than to receive and you may put finance towards trusts. Lower than Section 15 ? Countrywide ? for this reason is likely with the Lender as you and you will severally that have, and to a similar the amount once the, CWALT.

Within the , the lending company submitted the newest grievance on step prior to us seeking to erica Agency (declaratory relief action). The financial institution looked for a erica Organization-which in fact had ordered Countrywide’s property-try accountable for people damage Nationwide needed to pay for the the credit Suisse step.