United States District Court, D. Nevada
R. HICKS UNITED STATES DISTRICT JUDGE.
motions come before the court. First, defendant SFR
Investments Pool 1, LLC moves this court to dismiss plaintiff
Newlands Asset Holding Trust's complaint. ECF No. 16.
Defendant Stonefield Homeowners' Association (the
“HOA”) joined SFR Investments' motion. ECF
No. 17. Newlands opposed the motion, and SFR Investments
replied. ECF Nos. 20, 21. Second, Newlands moves to
substitute nonparty Carisbrook Asset Holding Trust into this
action as the plaintiff in the place and stead of Newlands,
or Carisbrook moves to intervene in the alternative. ECF No.
19. SFR Investments does not oppose the motion, and no reply
was filed. ECF No. 22.
court first grants the motion to substitute Carisbrook into
the action in the place and stead of Newlands. The court
finds that Newlands transferred its interest relevant to this
matter to Carisbrook after bringing suit, making substitution
of the parties proper. The court then denies the motion to
dismiss, finding the applicable statute of limitations does
not bar this suit.
2009, Damian Webber purchased the property located at 7752
Corso Street, Reno, Nevada 89506. ECF No. 1 at 1-2. Webber
executed a deed of trust, which identified Bank of America,
N.A. as the lender and beneficiary and identified PRLAP, Inc.
as the trustee. Id. at 2; id. at Ex. 2.
After multiple assignments, Newlands came to hold the
beneficial interests under the deed of trust. Id. at
3; id. at Exs. 3-7.
recording a notice of delinquent assessment lien, a notice of
default and election to sell, and a notice of homeowners'
association sale, the HOA held a nonjudicial foreclosure sale
on July 24, 2012. Id. at 3-4; see Id. at
Exs. 8-11. The HOA then recorded a quitclaim deed in 2014,
giving rise to SFR Investments' interest in the property.
Id. at 4; id. at Ex. 12.
sued the HOA and SFR Investments on June 13, 2017,
essentially seeking an order to quiet title over the
property. Id. After initiating this suit,
Newlands assigned its interest under the deed of trust to
Carisbrook Asset Holding Trust. ECF No. 16, Ex. A.
motions now come before the court. First, SFR Investments
moves to dismiss the complaint, and the HOA joins in the
motion. ECF Nos. 16, 17. Second, Newlands moves to substitute
Carisbrook Asset Holding Trust into this action in the place
and stead of Newlands. ECF No. 19. SFR does not oppose the
motion. ECF No. 22. The HOA did not respond, and no reply was
Federal Rule of Civil Procedure 25
Rule of Civil Procedure 25(c) allows for the substitution of
a party in an action if an interest has been transferred to
another. Fed.R.Civ.P. 25(c). The rule also permits an action
to proceed “by or against the original party.”
Id. A motion brought under Rule 25 is decided under
the court's discretion. Sun-Maid Raisin Grow. of Cal.
V. Cal. Pack. Corp., 273 F.2d, 282, 284 (9th Cir. 1959);
McComb v. Row River Lumber Co., 177 F.2d 129, 130
(9th Cir. 1949).
Federal Rule of Civil Procedure 12(b)(6)
Rule of Civil Procedure 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.
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. ...