Federal Home loan Financial Off San francisco bay area v. Countrywide Economic Organization

A135898

The demo courtroom ended res judicata barred Government Home loan Lender off San Francisco’s (the financial institution) allege up against Countrywide Monetary Corporation (Countrywide Financial) and you may suffered Countrywide Financial’s demurrer on earliest amended problem versus get-off so you can amend.

The financial institution is attractive. It contends the fresh courtroom erred by the concluding res judicata banned their claim facing Nationwide Economic since [t]right here try no latest view towards deserves inside the an earlier step which could keeps considering go up in order to res judicata contained in this step. I differ and you can affirm. We ending the fresh philosophy off res judicata pubs the latest Bank’s allege up against Countrywide Financial because: (1) the new Bank’s voluntary dismissal of their claim up against Nationwide Economic in the earlier step are a final wisdom into deserves; and you can (2) the brand new claim the financial institution overlooked when you look at the an earlier suit is the same reason behind action once the claim it asserts against Countrywide Financial in the present suit. With voluntarily dismissed which have bias claims away from control individual wrongdoing against certainly numerous defendants because of its own proper causes, the lending company will most likely not steer clear of the res judicata outcomes of the choice and sue this new overlooked defendant anew, once more alleging control-person liability, into the reliance on brand new pendency ones same states resistant to the kept stars in payday loans Arapahoe the first step.

I deal with since genuine the next accusations regarding Bank’s amended issue for the intended purpose of reviewing the transaction sustaining Countrywide Financial’s demurrer:

Judge out of Interest, Basic Area, Department 5, Ca

During the a process named securitization, an entity originate[s] mortgage loans otherwise acquires men and women money and you may aggregates her or him to your a great guarantee pool otherwise loan pool available so you’re able to a lending institution titled a depositor. step 1 New depositor carries the loans so you’re able to a believe, which in turn circumstances licenses that investors-including the Bank-should buy. Will eventually prior to , the bank purchased 95 residential mortgage-supported securities off various bonds people in 78 securitization trusts backed by residential mortgages at a high price more than $thirteen.5 billion bucks. The bank ordered certificates within the five securitizations regarding Countrywide Bonds Company (Countrywide Bonds). CWALT, Inc. (CWALT) approved new permits within the five securitizations. Countrywide Ties appear to given brand new certificates regarding the fifth securitization. dos

In , the lending company sued eight securities traders and therefore offered and you will offered brand new 95 domestic home loan-backed bonds, plus the agencies which issued brand new certificates otherwise controlled one of many entities you to definitely awarded the latest permits (Borrowing Suisse or perhaps the Borrowing from the bank Suisse step). 3 The latest crux of the Bank’s says is actually defendants made incorrect or misleading statements inside the offering data issued regarding the the domestic home loan-backed securities the lending company bought.

Among defendants for the Credit Suisse was basically Countrywide Bonds Business, CWALT, and you can Nationwide Financial. As the associated right here, the bank alleged: (1) Countrywide Securities produced incorrect otherwise mistaken statements from the product sales out of ties inside admission out of Businesses Password sections 25401 and you may 25501 having regard so you’re able to securitizations 74 owing to 78; 4 (2) Nationwide Ties and CWALT made false otherwise mistaken comments when you look at the solution out of areas 11 and 12 of Bonds Work from 1933 (sections 11 & 12) when it comes to securitizations 75 through 78; and (3) Nationwide Financial violated point fifteen of your Ties Operate (Section 15) according to its control over CWALT. Within the Part 15 allege up against Countrywide Financial, the lending company so-called CWALT resided for no mission rather than discovered and put fund to the trusts. Significantly less than Point 15 ? Nationwide ? for this reason is likely for the Bank jointly and you may severally that have, also to the same the total amount while the, CWALT.

Inside the , the bank filed brand new issue regarding action just before united states seeking erica Firm (declaratory relief action). The financial institution looked for an effective erica Business-which in fact had ordered Countrywide’s property-is actually responsible for one injuries Nationwide needed to pay into the the financing Suisse step.