Specifically, Nationwide Economic contended brand new Bank’s point 25504 allege try a similar reason for step as the Area 15 allege under the number 1 rights’ concept. Based on Countrywide Economic, the lending company wanted to hold they responsible regarding the Credit Suisse action due to the fact a control people to own so-called misrepresentations for the [domestic home loan-recognized securities] giving data and also in brand new declaratory rescue step, the bank seeks to hang [Nationwide Financial] liable as a running people for the very same alleged misrepresentations about exact same ? providing data files. Countrywide Monetary conceded the new courtroom concepts in the two cases you can try these out was more, but argued the bank so-called a citation of the identical primary proper-this new asserted right to giving files without topic misrepresentations; and you can, also, claims in tips having suffered an equivalent damage since a direct result [Countrywide’s Financial’s] so-called misconduct.

Countrywide Economic demurred into operative amended declaratory recovery criticism, contending res judicata barred the new Bank’s area 25504 allege because the Lender is impermissibly looking to relitigate a factor in action that has been disregarded having prejudice into the a previous action within same functions

As well, the financial institution argued there’s no final wisdom on the merits on the Credit Suisse action since their claims on each securitization in question inside the Credit Suisse had been element of one factor in step having reason for res judicata. While the Lender said, a lot of the Bank’s claims towards those individuals securities on the Borrowing Suisse action are still pending. Therefore, there’ve been no finally judgment on deserves of your Bank’s whole reason for action with the the four bonds in the Borrowing Suisse action which might be also the topic from this step[.] 5

In resistance, the bank contended the new section 25504 claim they asserted regarding declaratory rescue step was unlike the latest states you to definitely [it] willingly ignored in Borrowing from the bank Suisse hence res judicata don’t bar they from asserting some other states lower than a new statute

This new court seen, [t]the guy real concern we have found whether or not what was overlooked is the same number 1 correct with what is considered right here [regarding declaratory recovery step]. Then legal responded the question throughout the affirmative. It informed me, the brand new Securities Operate and you can areas 25401 and you will 25501 give control individuals in control in same circumstances ? without the factor within the federal strategy and/or county scheme? While the Ca law is not materially different from the latest federal statute. Brand new judge went on, a general concept during the preclusive feeling jurisprudence is the fact that [c]ourt isnt bound by the fresh style, or even the pleadings, or perhaps the articulation on causes of action. Put simply ? that you do not have a look at factors that cause step ? or components of result in[s] regarding step. You can the heart of what is happening. Therefore seems to myself the center of what actually is taking place, using this position ? is actually control individual accountability. That significantly less than a federal law plus one not as much as a state law. Without amount the way you ask it or precisely what the succession is, ? it is an identical in both cases.

I opinion de novo the fresh new court’s acquisition preserving Countrywide’s demurrer rather than exit in order to amend. (Property from Dito (2011) 198 Cal.Application.next 791, 800 (Dito ).) I first comment the fresh issue de novo to determine whether it include things sufficient to condition a factor in action not as much as any courtroom concept. [Admission.] I eliminate the latest demurrer because admitting the matter points properly pleaded, yet not contentions, deductions or results of-fact otherwise law. [Admission.] I contemplate things that may be judicially seen.’ [Pass.] ‘ [Pass.] We affirm if any crushed offered in assistance of the demurrer try well-taken however, find mistake if the plaintiff states a factor in action around any possible courtroom idea. [Citations.] We are really not limited by new trial court’s mentioned causes, or no, supporting its governing; we feedback the new ruling, not the rationale. [Pass.]’ [Ticket.] (Id. at the p. 800.)