Government Home loan Financial Away from San francisco bay area v. Nationwide Economic Company
A135898
The trial legal finished res judicata banned Government Mortgage Lender from San Francisco’s (the lending company) allege up against Nationwide Economic Firm (Nationwide Monetary) and you can sustained Nationwide Financial’s demurrer with the very first revised issue without get-off so you’re able to amend.
The bank appeals. It argues this new legal erred because of the concluding res judicata barred their claim up against Nationwide Monetary as the [t]here is zero finally wisdom for the deserves inside an earlier action that may have considering rise so you’re able to res judicata contained in this action. I differ and you will affirm. I finish the fresh doctrine away from res judicata taverns the fresh Bank’s allege against Nationwide Monetary because the: (1) the brand new Bank’s volunteer dismissal of its claim up against Nationwide Financial into the the earlier action is a last view towards merits; and you may (2) the newest claim the lending company ignored in the a previous suit ‘s the exact same cause of step once the claim they asserts up against Countrywide Monetary in the current lawsuit. Which have willingly disregarded having bias says of manage people wrongdoing against certainly numerous defendants for its individual strategic factors, the bank will most likely not avoid the res judicata effects of the choice and you can sue the brand new disregarded accused anew, once more alleging handle-individual liability, for the reliance upon the newest pendency of these same says up against the kept actors in the 1st step.
I accept just like the real another accusations on the Bank’s revised complaint with regards to reviewing the transaction retaining Nationwide Financial’s demurrer:
Courtroom out-of Appeal, Very first Region, Department 5, Ca
From inside the a process called securitization, an organization originate[s] mortgage loans otherwise acquires those loans and you may aggregates them into a great security pond or loan pool for sale to help you a loan company named an excellent depositor. 1 The fresh new depositor sells the fresh new loans so you’re able to a confidence, which then facts permits one traders-including the Financial-can buy. Will eventually ahead of , the bank bought 95 domestic home loan-supported ties of various bonds investors into the 78 securitization trusts supported by domestic mortgages at a cost more than $13.5 million cash. The bank ordered certificates inside four securitizations away from Nationwide Bonds Firm (Nationwide Securities). CWALT, Inc. (CWALT) provided the permits inside four securitizations. Nationwide Securities frequently awarded the new permits in the fifth securitization. 2
During the , the lending company charged seven ties people and that offered and you will offered the latest 95 residential home loan-backed bonds, in addition to entities hence given the fresh permits otherwise regulated among the many organizations you to approved the latest certificates (Borrowing from the bank Suisse or the Borrowing Suisse step). step three The brand new crux of your Bank’s says is defendants produced untrue otherwise misleading statements into the offering records provided concerning the fresh new residential financial-recognized ties the lending company purchased.
Among the defendants for the Borrowing from the bank Suisse was Countrywide Ties Agency, CWALT, and you will Nationwide Economic. As relevant here, the financial institution alleged: (1) Nationwide Securities generated untrue otherwise misleading statements on the marketing from bonds in solution from Organizations Password parts 25401 and 25501 with value to help you securitizations 74 because of 78; 4 (2) Nationwide Bonds and CWALT generated false or misleading comments inside violation off areas 11 and you can twelve of Bonds Act of 1933 (sections eleven & 12) regarding securitizations 75 courtesy 78; and you may (3) Nationwide Monetary violated point fifteen of the Bonds Act (Point fifteen) considering the control over CWALT. In Section fifteen claim up against Countrywide Monetary, the lending company so-called CWALT resided for no mission than to receive and you may put fund with the trusts. Significantly less loans in Fort Carson than Section 15 ? Countrywide ? hence is likely on the Financial jointly and you may severally which have, and an equivalent the total amount once the, CWALT.
Inside , the lending company recorded this new problem throughout the action prior to us trying erica Business (declaratory save action). The bank tried a erica Company-which in fact had purchased Countrywide’s property-are liable for people damages Nationwide needed to pay in the the credit Suisse step.
