United States District Court, D. Nevada
before the court is defendant Canyon Willow Owners
Association's (the “HOA”) motion to dismiss
plaintiff Federal National Mortgage Association's
(“Fannie Mae”) amended complaint. (ECF No. 38).
Fannie Mae filed a response (ECF No. 42), and the HOA filed a
reply (ECF No. 52).
action involves the parties' property interests in the
real estate at 3085 Casey Drive, Unit 201, Las Vegas, Nevada
89120. (ECF No. 35). Essentially, Fannie Mae challenges the
defendants' conduct surrounding the February 2, 2013,
foreclosure sale and seeks to preserve its pre-sale interest
in the property. (Id.).
Mae alleges the following causes of action against the HOA:
(1) declaratory relief under the Fifth and Fourteenth
Amendments' due process clauses; (2) wrongful
foreclosure; and (3) violation of Nevada Revised Statute
(“NRS”) § 116.1113, et seq.
court may dismiss a plaintiff's 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). Although rule 8 does not
require detailed factual allegations, it does require more
than labels and conclusions. Bell Atl. Corp. v.
Twombly, 550 U.S. 544, 555 (2007). Furthermore, a
formulaic recitation of the elements of a cause of action
will not suffice. Ashcroft v. Iqbal, 556 U.S. 662,
677 (2009) (citation omitted). Rule 8 does not unlock the
doors of discovery for a plaintiff armed with nothing more
than conclusions. Id. at 678-79.
survive a motion to dismiss, a complaint must contain
sufficient factual matter to “state a claim to relief
that is plausible on its face.” Id. A claim
has facial plausibility when the plaintiff pleads factual
content that allows the court to draw the reasonable
inference that the defendant is liable for the misconduct
alleged. Id. When a complaint pleads facts that are
merely consistent with a defendant's liability, and shows
only a mere possibility of entitlement, the complaint does
not meet the requirements to show plausibility of entitlement
to relief. Id.
Iqbal, the Supreme Court clarified the two-step
approach district courts are to apply when considering a
motion to dismiss. Id. First, the court must accept
as true all of the allegations contained in a complaint.
However, this requirement is inapplicable to legal
conclusions. Id. Second, only a complaint that
states a plausible claim for relief survives a motion to
dismiss. Id. at 678. Where the complaint does not
permit the court to infer more than the mere possibility of
misconduct, the complaint has “alleged - but not shown
- that the pleader is entitled to relief.” Id.
at 679. When the allegations in a complaint have not crossed
the line from conceivable to plausible, plaintiff's claim
must be dismissed. Twombly, 550 U.S. at 570.
Ninth Circuit addressed post-Iqbal pleading
standards in Starr v. Baca, 652 F.3d 1202, 1216 (9th
Cir. 2011). The Starr court held:
First, to be entitled to the presumption of truth,
allegations in a complaint or counterclaim may not simply
recite the elements of a cause of action, but must contain
sufficient allegations of underlying facts to give fair
notice and to enable the opposing party to defend itself
effectively. Second, the factual allegations that are taken
as true must plausibly suggest an entitlement to relief, such
that it is not unfair to require the opposing party to be
subjected to the expense of discovery and continued
initial matter, Fannie Mae has submitted evidence that the
HOA and it have completed mediation with the Nevada Real
Estate Division, pursuant to NRS 38.330. (ECF No. 25-3).
Thus, no exhaustion analysis is necessary here.