United States District Court, D. Nevada
WELLS FARGO BANK, N.A., a national banking association, Plaintiff,
SFR INVESTMENTS POOL 1, LLC, a Nevada limited liability company; THE FOOTHILLS AT WINGFIELD HOMEOWNERS ASSOCIATION, a Nevada non-profit corporation; FULLER JENKINS CLARKSON, P.C., a Nevada professional corporation Defendants. SFR INVESTMENTS POOL 1, LLC, a Nevada limited liability company, Counterclaimant,
WELLS FARGO BANK, N.A., a national banking association; MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., its successors and assigns, as Nominee Beneficiary for DHI MORTGAGE COMPANY, a Texas limited partnership; BRIAN MCKAY, an individual; LAWRENCE D. MCKAY, an individual, Counter-Defendants.
R. HICKS UNITED STATES DISTRICT JUDGE
matter centers on a nonjudicial foreclosure sale conducted in
2012 under Nevada Revised Statute (“N.R.S.”)
§ 116.3116 et seq. by defendant The Foothills
at Wingfield Homeowners' Association (“HOA”).
See ECF Nos. 1, 16, 23. Plaintiff Wells Fargo Bank,
N.A. challenges the constitutionality of the foreclosure sale
and, more specifically, the effect of the foreclosure sale on
Wells Fargo's deed of trust that encumbered the at-issue
property. ECF No. 1 at ¶¶ 12, 34-36. Wells Fargo
brings seven claims for relief, including claims to quiet
title, claims for declaratory relief, and claims arising
under Nevada state law. ECF No. 1 at 7-14.
before the court is the HOA's motion to dismiss. ECF No.
23. In its motion, the HOA moves to dismiss all claims
against it. Id. Wells Fargo opposed the motion. ECF
No. 27. Defendant SFR Investments Pool 1, LLC also opposed
the motion but in a limited manner. ECF No. 25. The HOA filed
a reply. ECF No. 28. The court now grants the motion in part
and denies the motion in part, dismissing claim four, claim
five, and claim seven.
2008, defendants Brian McKay and Lawrence McKay executed a
promissory note and a deed of trust to obtain a loan to
purchase the property at 4329 Clearwood Drive, Sparks, Nevada
89436 (Parcel Number 526-371-02). ECF No. 1 at ¶¶
4, 15, 16. The deed of trust was recorded in Washoe County,
Nevada, designating DHI Mortgage Company as the lender, Ticor
Title of Nevada as the trustee, and Mortgage Electronic
Registrations Systems, Inc. as the nominee for the lender.
Id. Wells Fargo came to hold the beneficial interest
under the deed of trust by way of assignment. Id. at
¶ 18. Wells Fargo was also assigned the note.
at-issue property sits in a community governed by the HOA and
is therefore subject to assessments. See Id. at
¶¶ 19-20. After the McKays failed to pay the
assessments as they came due, defendant Fuller Jenkins
Clarkson, P.C. (“Fuller”) recorded a notice of
delinquent assessment lien on behalf of the HOA. Id.
Fuller later recorded a notice of default and election to
sell and then a notice of foreclosure sale, both on behalf of
the HOA. Id. at ¶¶ 22, 25. At the
nonjudicial foreclosure sale held in November 2012, the HOA
purchased the property. Id. at ¶ 27. The HOA
transferred the property to SFR via a quitclaim deed in 2013.
Id. at ¶ 31.
Fargo sues the defendants, alleging seven causes of action:
(1) quiet title and declaratory relief under the Takings
Clause of the 5th and 14th Amendments to the U.S.
Constitution; (2) quiet title and declaratory relief under
the Supremacy Clause in Article 4, § 3 of the U.S.
Constitution; (3) quiet title and declaratory relief under
the Due Process Clause of the 5th and 14th Amendments to the
U.S. Constitution; (4) wrongful foreclosure; (5) violation of
the duty of good faith imposed by N.R.S. § 116.1113
et seq.; (6) quiet title; and (7) unjust
enrichment. ECF No. 1 at 7-14. SFR asserts two
counterclaims, which are not at issue here. ECF No. 16. The
HOA filed its answer to the complaint, which included the
defense of failure to state a claim. ECF No. 7. It now moves
to dismiss the complaint, arguing that it is a disinterested
party in this matter and that Wells Fargo failed to mediate
its claims as required by Nevada law. ECF No. 23 at 3-10.
Federal Rule of Civil Procedure 12(b)(1)
12(b)(1) permits a party to move for dismissal of a complaint
based on lack of subject matter jurisdiction. Fed.R.Civ.P.
12(b)(1). In examining a facial attack of subject matter
jurisdiction, the court accepts the allegations in the
complaint as true. Wolfe v. Strankman, 392 F.3d 358,
362 (9th Cir. 2004).
Federal Rule of Civil Procedure 12(b)(6)
8(a)(2) requires a pleading to contain a “short and
plain statement of the claim showing that the pleader is
entitled to relief.” Fed.R.Civ.P. 8(a)(2). A court may
dismiss a complaint that fails to meet this standard under
Rule 12(b)(6). Fed.R.Civ.P. 12(b)(6). Rule 12(b)(6) permits
dismissal on the basis of either (1) the “lack of a
cognizable legal theory, ” or (2) “the absence of
sufficient facts alleged under a cognizable legal
theory.” Balistreri v. Pacifica Police
Dep't, 901 F.2d 696, 699 (9th Cir. 1990).
considering whether the complaint is sufficient to state a
claim, the court accepts as true all factual allegations
contained in the complaint. Ashcroft v. Iqbal, 556
U.S. 662, 678 (2009). However, a court need not “accept
as true allegations that contradict matters properly subject
to judicial notice or by exhibit” or “allegations
that are merely conclusory, unwarranted deductions of fact,
or unreasonable inferences.” In re Gilead Scis.
Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008)
(internal quotations omitted). While a complaint need not
allege detailed factual allegations, it “must contain
sufficient factual matter, accepted as true, to ‘state
a claim to relief that is plausible on its face.'”
Iqbal, 556 U.S. at 678 (quoting Bell Atl. Corp.
v. Twombly, 550 U.S. 544, 570 (2007)). A claim is
facially plausible when it “allows the court to draw
the reasonable inference that the defendant is liable for the
misconduct alleged.” Id.
motions to dismiss filed after an answer are treated as a
motion for judgment on the pleadings under Rule 12(c).
Aldabe v. Aldabe, 616 F.2d 1089, 1093 (9th Cir.
1980). A court must still treat all allegations in the
complaint as true under Rule 12(c) and must treat
contradicting allegation in the ...