A135898

The fresh demo court concluded res judicata barred Federal Home loan Financial from San Francisco’s (the financial institution) allege facing Nationwide Economic Business (Nationwide Monetary) and you will suffered Countrywide Financial’s demurrer on the basic amended issue as opposed to get-off so you can amend.

The financial institution appeals. It argues the newest legal erred by finishing res judicata banned its allege against Countrywide Monetary since [t]here is actually no latest view for the deserves when you look at the a previous action that will has considering rise so you’re able to res judicata in this step. I differ and you can affirm. We conclude the newest philosophy of res judicata pubs the Bank’s allege up against Nationwide Monetary once the: (1) the latest Bank’s volunteer dismissal of the claim facing Countrywide Economic when you look at the the previous step are a last judgment on merits; and you can (2) brand new claim the financial institution disregarded in a past suit ‘s the same reason behind action once the allege they claims up against Nationwide Financial in the current lawsuit. Having willingly disregarded which have bias says out-of manage individual wrongdoing against certainly several defendants because of its individual strategic factors, the financial institution might not steer clear of the res judicata outcomes of the decision and sue the new dismissed defendant anew, once again alleging control-individual responsibility, within the reliance upon the fresh pendency ones same claims from the remaining stars in the 1st action.

We deal with because the genuine the following allegations regarding Bank’s amended problem for the true purpose of looking at the transaction retaining Countrywide Financial’s demurrer:

Courtroom from Appeal, Earliest Area, Section 5, Ca

In a system named securitization, an entity originate[s] mortgages or acquires those financing and you can aggregates her or him on the an effective equity pond otherwise mortgage pond on the market so you can a lending institution titled a good depositor. step one The brand new depositor offers the latest finance so you can a depend on, which in turn issues permits you to definitely traders-such as the Financial-can buy. online loans Marion Will ultimately prior to , the financial institution ordered 95 residential home loan-backed securities from individuals ties people in 78 securitization trusts backed by domestic mortgages at a cost of over $thirteen.5 billion dollars. The financial institution bought licenses inside the four securitizations away from Nationwide Ties Firm (Countrywide Securities). CWALT, Inc. (CWALT) approved the newest certificates during the four securitizations. Countrywide Ties apparently issued the fresh new permits regarding 5th securitization. dos

In the , the lending company sued 7 securities dealers and this given and you may offered the fresh 95 domestic mortgage-supported bonds, and the entities and therefore awarded this new certificates or regulated one of many entities one to granted brand new permits (Borrowing Suisse and/or Borrowing Suisse action). 3 New core of one’s Bank’s says try defendants produced incorrect otherwise mistaken comments within the offering data files given in connection with the home-based financial-supported securities the lending company purchased.

One of several defendants during the Credit Suisse have been Countrywide Ties Firm, CWALT, and you will Countrywide Financial. Since related here, the financial institution alleged: (1) Countrywide Bonds generated not true or mistaken comments regarding the business regarding securities inside violation out-of Corporations Code parts 25401 and you will 25501 that have regard so you’re able to securitizations 74 compliment of 78; cuatro (2) Countrywide Securities and you can CWALT made false otherwise misleading statements within the solution from areas 11 and you will twelve of one’s Ties Operate out of 1933 (parts 11 & 12) when it comes to securitizations 75 because of 78; and (3) Countrywide Financial violated point fifteen of Securities Operate (Section 15) according to its control of CWALT. With its Part fifteen allege up against Countrywide Monetary, the lending company so-called CWALT stayed with no mission rather than discovered and you will put funds to your trusts. Under Part 15 ? Nationwide ? for this reason is likely into the Lender as one and you will severally which have, and also to the same the amount because, CWALT.

Within the , the bank filed the fresh new issue from the action before us looking to erica Business (declaratory recovery action). The financial institution wanted an excellent erica Agency-which had bought Countrywide’s possessions-are accountable for any injuries Countrywide was required to shell out during the the financing Suisse step.