Countrywide Home Loans, Inc. v. Superior Court

*789 Opinion

This case presents the question of whether, under the rules governing the joinder of parties, a trial court can require a plaintiff to sue all of the participants in an alleged scheme to defraud even though the plaintiff wants to sue only some of them. Plaintiff contends that it can choose which tortfeasors to sue. We agree.

Background

Plaintiff Countrywide Home Loans, Inc., is a mortgage banker in the business of originating, purchasing, selling, and servicing mortgage loans. As part of its business, Countrywide purchases loans from correspondent lenders and resells them on the secondary market. Countrywide does not hold such loans in its own portfolio, except for the limited time between purchasing a loan from a correspondent lender and reselling the loan to an investor.

In the mid-1990’s, Countrywide purchased loans from Keros Mozilo Mortgage Bankers (Keros Mozilo) for resale in the secondary market. The loans were made in connection with the sale of units in three condominium projects. On or about October 24, 1997, Countrywide filed this action, alleging that several persons had perpetrated a fraudulent scheme in obtaining the loans. The complaint describes a…