Government Financial Lender Of San francisco v. Nationwide Financial Firm

A135898

This new demonstration courtroom concluded res judicata banned Federal Mortgage Financial out-of San Francisco’s (the lending company) claim facing Countrywide Monetary Corporation (Countrywide Financial) and you will suffered Countrywide Financial’s demurrer toward first amended criticism in place of exit in order to amend.

The financial institution is attractive. They argues the court erred by the finishing res judicata banned its claim up against Countrywide Monetary because the [t]right here try zero last view for the merits during the an earlier action which could have offered rise to res judicata https://paydayloancolorado.net/burlington/ inside action. We disagree and affirm. I conclude the brand new philosophy off res judicata pubs the Bank’s allege against Nationwide Economic because the: (1) new Bank’s volunteer dismissal of its claim against Nationwide Monetary for the the prior step try a final judgment with the deserves; and you will (2) new claim the bank overlooked inside a prior suit is the same factor in step because the allege they claims up against Nationwide Economic in the present lawsuit. With willingly dismissed which have prejudice claims away from manage individual wrongdoing facing among multiple defendants for its own strategic reasons, the lending company might not prevent the res judicata effects of the decision and you will sue brand new ignored defendant anew, again alleging handle-individual responsibility, inside reliance upon brand new pendency of these exact same says up against the leftover actors in the 1st action.

We accept due to the fact real another accusations throughout the Bank’s amended criticism with regards to reviewing your order sustaining Nationwide Financial’s demurrer:

Courtroom out of Attract, Very first Area, Division 5, California

In a process titled securitization, an organization originate[s] mortgages otherwise acquires people fund and you will aggregates him or her on an excellent equity pool otherwise financing pool offered in order to a financial institution entitled a beneficial depositor. step 1 The newest depositor deal the loans to help you a confidence, which then items certificates that traders-such as the Lender-can buy. Will ultimately before , the financial institution ordered 95 domestic mortgage-backed bonds from various ties people within the 78 securitization trusts backed by residential mortgage loans at a cost more than $thirteen.5 mil cash. The financial institution ordered certificates inside the four securitizations away from Countrywide Securities Company (Nationwide Securities). CWALT, Inc. (CWALT) granted the fresh new licenses inside the five securitizations. Nationwide Ties apparently provided the new licenses regarding fifth securitization. 2

In the , the bank charged seven securities buyers which offered and you will offered the brand new 95 domestic financial-supported securities, while the entities hence issued this new certificates otherwise regulated one of several entities you to given the brand new licenses (Borrowing from the bank Suisse or the Credit Suisse step). step three The crux of one’s Bank’s claims try defendants generated incorrect or misleading comments in the giving data provided concerning the new residential home loan-backed securities the bank purchased.

Among defendants within the Borrowing from the bank Suisse was in fact Nationwide Bonds Company, CWALT, and you may Nationwide Economic. As the associated here, the financial institution so-called: (1) Nationwide Ties made not the case or mistaken statements from the sale regarding securities within the solution out of Agencies Code sections 25401 and you may 25501 which have esteem to securitizations 74 as a result of 78; 4 (2) Countrywide Bonds and you can CWALT produced incorrect otherwise misleading comments inside the citation regarding areas 11 and you may several of your own Securities Work regarding 1933 (areas eleven & 12) with regards to securitizations 75 thanks to 78; and you can (3) Nationwide Economic broken point fifteen of your own Securities Act (Section fifteen) considering its power over CWALT. In its Point fifteen claim against Nationwide Economic, the lending company alleged CWALT resided for no objective rather than discovered and deposit money into trusts. Less than Section 15 ? Nationwide ? ergo is likely towards Financial as you and severally with, and also to an identical the amount given that, CWALT.

Inside , the lending company registered brand new issue on the step just before united states seeking erica Enterprise (declaratory save step). The bank sought a beneficial erica Organization-which in fact had bought Countrywide’s property-was liable for people injuries Countrywide needed to shell out when you look at the the financing Suisse action.