CMFG Life Insurance Company et al v. Credit Suisse Securities (USA) LLC

Filing 79

ORDER granting in part and denying in part 57 Motion to Dismiss ; granting 61 Motion for Request to Take Judicial Notice re: 60 Declaration, 57 MOTION TO DISMISS In Part the First Amended Complaint ; granting 61 Motion for Request to Take Judicial Notice re: 60 Declaration, 57 MOTION TO DISMISS In Part the First Amended Complaint ; granting 76 Motion for Leave to File ; granting in part and denying in part 78 Motion to Amend/Correct Signed by District Judge William M. Conley on 12/16/2016. (mfh)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WISCONSIN

CMFG LIFE INSURANCE COMPANY,
CUMIS
INSURANCE
SOCIETY
and
MEMBERS LIFE INSURANCE COMPANY,
Plaintiffs,

ORDER

v.
14-cv-249-wmc
CREDIT SUISSE SECURITIES (USA) LLC,
Defendant.

The court held a telephonic hearing today to address the pending motions in this
case (dkt. ##57, 61, 70, 76, 78), at which the parties appeared by counsel. Consistent
with the rulings during that conference, IT IS ORDERED that:
1) Defendant Credit Suisse Securities (USA) LLC’s motion for judicial notice
(dkt. #61) is GRANTED insofar as the court takes judicial notice only of the
authenticity of the provided documentation.
2) Defendant’s motion to dismiss (dkt. #57) is GRANTED IN PART and
DENIED IN PART.

Defendant’s motion is GRANTED as to plaintiffs’

(collectively,

Mutual’s”)

“CUNA

claim

against

the

WFMBS

2006-2

Certificate, in light of the final judgment entered in General Retirement System of
the City of Detroit v. Wells Fargo Mortgage Backed Securities 2006-AR18 Trust
enjoining “each of the Class Members,” which included CUNA Mutual, “from
pursuing any or all Settled Claims, against any Released Party,” which included
Credit Suisse. Moreover, “Settled Claims” was defined as “any and all claims

and causes of action of every nature and description . . . that were asserted,
could have been asserted, or that arise out of the same transactions or
occurrences as the claims that were asserted” in that case, including the sale of
WFMBS 2006-2 Certificate. Defendant’s motion is also GRANTED IN PART
as to the extent that plaintiffs may not have adequately pleaded claims of
abandonment of originator underwriting guidelines as to the three certificates
issued from the CSFB 2005-FIX1 Securitization and the two certificates issued
from the CSFB 2005-9 Securitization, but only to the extent that any claim of
plaintiffs as to those certificates would be similarly limited.

Defendant’s

motion is DENIED in all other respects.
3) Plaintiffs’ motion for leave to file a reply brief in support of their motion to
institute a loan file reunderwriting protocol (dkt. #76) is GRANTED.
4) Plaintiff’s motion to institute a loan file reunderwriting protocol (dkt. #70) is
GRANTED. If the parties are unable to reach agreement on a stipulated loan
file reunderwriting protocol, then they should proceed as follows.

By

Thursday, December 22, 2016, plaintiffs shall provide a proposed loan file
reunderwriting protocol to defendant, consistent in basic format to that
adopted in the NCUA litigation, and copy the court on the proposal.
Defendant shall respond to plaintiffs’ proposal by Wednesday, January 4,
2017, and copy the court on the response. If either party wants to be heard on
the loan file reunderwriting protocol at a telephonic conference that would be
scheduled on Friday, January 6, then they should notify the court by 12:00 on
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Thursday, January 5, otherwise the court will enter a loan file reunderwriting
protocol consistent with the parties’ submissions.
5) The parties’ joint motion to amend the scheduling order (dkt. #78) is
GRANTED IN PART and DENIED IN PART as follows:
EVENT

AMEDED DEADLINE
March 31, 2017

Disclosure of Affirmative Expert Reports
Disclosure of Rebuttal Expert Reports other
than for Reunderwriting, Loss Causation and
Sampling Experts

May 15, 2017

Disclosure of Rebuttal Expert Reports for
Reunderwriting, Loss Causation and
Sampling Experts

June 30, 2017

Close of Fact and Expert Discovery

July 31, 2017

Deadline for Filing Dispositive Motions

May 31, 2017

Settlement Letters

August 28, 2017

Pre-trial Disclosures and Motions in Limine

September 15, 2017

Trial

October 30, 2017

Entered this 16th day of December, 2016.
BY THE COURT:
/s/
WILLIAM M. CONLEY
District Judge

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