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CitiMortgage, Inc. v. Tierra De Las Palmas Owners Association

United States District Court, D. Nevada

January 27, 2017

CITIMORTGAGE, INC., Plaintiffs,
v.
TIERRA DE LAS PALMAS OWNERS ASSOCIATION, et al., Defendants.

          ORDER

         Presently before the court is defendant Tierra De Las Palmas Owners Association's (the “HOA”) motion to dismiss. (ECF No. 15). Plaintiff CitiMortgage, Inc. (“CMI”) filed a response (ECF No. 17), to which the HOA replied (ECF No. 19).

         I. Facts

         This case involves a dispute over real property located at 5143 Marshall Island Court, North Las Vegas, Nevada 89031 (the “property”). (ECF No. 1 at 2).

         On May 5, 2006, Lakeshia Spencer obtained a loan from Countrywide Home Loans, Inc. in the amount of $164, 000.00, which was secured by a deed of trust recorded on May 15, 2006. (ECF No. 1 at 3). On December 13, 2011, the deed of trust was assigned to CMI via an assignment of deed of trust. (ECF No. 1 at 3).

         On October 7, 2011, defendant Absolute Collection Services, LLC (“ACS”), acting on behalf of the HOA, recorded a notice of delinquent assessment lien, stating an amount due of $816.71. (ECF No. 1). On February 10, 2012, ACS recorded a notice of default and election to sell to satisfy the delinquent assessment lien, stating an amount due of $1, 696.98. (ECF No. 1).

         On February 17, 2012, CMI requested a ledger from the HOA through its agent ACS, identifying the super-priority amount allegedly owed, but the HOA refused to respond. (ECF No. 1).

         On December 7, 2012, ACS recorded a notice of trustee's sale, stating an amount due of $3, 315.30. (ECF No. 1). On May 14, 2013, the HOA foreclosed on the property. (ECF No. 1). Defendant Marshall Family Trust (“MFT”) purchased the property for $6, 500.00. (ECF No. 1). A trustee's deed in favor of MFT was recorded May 16, 2013. (ECF No. 1).

         On March 18, 2016, CMI filed the underlying complaint, alleging four claims of relief: (1) quiet title/declaratory judgment against all defendants; (2) breach of NRS 116.1113 against the HOA and the ACS; (3) wrongful foreclosure against the HOA and ACS; and (4) injunctive relief against MFT. (ECF No. 1).

         In the instant motion, the HOA moves to dismiss CMI's complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). (ECF No. 15). The court will address each in turn.

         II. Legal Standard

         A court may dismiss a complaint for “failure to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). A properly pled complaint must provide “[a] short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2); Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). While Rule 8 does not require detailed factual allegations, it demands “more than labels and conclusions” or a “formulaic recitation of the elements of a cause of action.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted).

         “Factual allegations must be enough to rise above the speculative level.” Twombly, 550 U.S. at 555. Thus, to survive a motion to dismiss, a complaint must contain sufficient factual matter to “state a claim to relief that is plausible on its face.” Iqbal, 556 U.S. 662, 678 (citation omitted).

         In Iqbal, the Supreme Court clarified the two-step approach district courts are to apply when considering motions to dismiss. First, the court must accept as true all well-pled factual allegations in the complaint; however, legal conclusions are not entitled to the assumption of truth. Id. at 678-79. Mere recitals of the elements of a cause of action, supported only by conclusory statements, do not suffice. Id. at 678.

         Second, the court must consider whether the factual allegations in the complaint allege a plausible claim for relief. Id. at 679. A claim is facially plausible when the plaintiff's complaint alleges facts that allow the court to draw a reasonable ...


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