United States District Court, D. Nevada
WELLS FARGO BANK, N.A., a national I banking association; Plaintiff,
PLATINUM REALTY AND HOLDINGS LLC, a Nevada limited-liability company; SFR INVESTMENTS POOL 1, LLC, a Nevada limited-liability company, SPRING MOUNTAIN RANCH MASTER ASSOCIATION, a Nevada non-profit corporation; NEVADA ASSOCIATION SERVICES, INC., a Nevada corporation company; Defendants. SFR INVESTMENTS POOL 1, LLC, a Nevada limited liability company, Counter-Claimant,
WELLS FARGO BANK, N.A., a national banking association; BARBARA J. FORFA, an individual, Counter-Defendant/Cross-Defendant.
S. Ebron, Esq. Nevada Bar No. 10580 Jacqueline A. Gilbert,
Esq. Nevada Bar No. 10593 Karen L. Hanks, Esq. Nevada Bar No.
09578 Kim Gilbert Ebron Attorneys for SFR Investments Pool 1,
& Wilmer L.L.P. Wayne Klomp, Esq. Nevada Bar No. 10109
Amy F. Sorenson, Esq. Nevada Bar No. 12495 Attorney for Wells
Fargo Bank, N.A.
JOHNSON SONG & GRUCHOW Sean L. Anderson, Esq. Nevada Bar
No. 7259 T. Chase Pittsenbarger, Esq. Nevada Bar No. 13740
Attorney for Spring Mountain Ranch Master Association
STIPULATION AND ORDER TO STAY LITIGATION PENDING
FINAL RESOLUTION OF CERTIFIED QUESTION BEFORE THE NEVADA
to LR IA 6-2 and LR 7-1,
Defendant/Counterclaimant/Cross-Claimant, SFR INVESTMENTS
POOL 1, LLC ("SFR"), PlaintifT/Counter-defendant
WELLS FARGO BANK, N.A. ("Wells Fargo"), and
Defendant SPRING MOUNTAIN RANCH MASTER ASSOCIATION (the
"Association") (collectively, the
"Parties"), by and through their respective
undersigned counsel of record, hereby submit the following
Stipulation and Order Staying Case Pending Resolution of
Certified Question Before the Nevada Supreme Court:
lawsuit involves the parties seeking quiet title/declaratory
relief and other claims related to a non-judicial home
owner's foreclosure sale conducted on a Property pursuant
to NRS Chapter 116.
August 12, 2016, the Ninth Circuit issued its decision in
Bourne Valley Court Trust v. Wells Fargo Bank, N.A,
832 F.3d 1154, 1156 (9th Or. 2016) ("Bourne
Valley") holding that NRS Chapter 116 is facially
Competing motions for summary judgment were filed by each of
the parties to this litigation in early 2016. [ECF No.'s
41, 46, 63].
Stipulation and Order to Stay Litigation Pending Final
Resolution of Petition(s) for Writ of Certiorari to United
States Supreme Court was previously entered in this case on
March 10, 2017. [ECF No. 77].
Order administratively denying all pending motions without
prejudice [ECF No.'s 41, 46, 63 and 67] was entered on
March 10, 2017, providing that, after the stay was lifted,
the parties could, by notice to the Court, reinstate their
respective motions. [ECF No. 78].
January 26, 2017, the Nevada Supreme Court issued its
decision in Saticoy Bay LLC Series 350 Durango v. Wells
Fargo Home Mortg, 388 P.3d 970 (Nev. 2017)
("Saticoy Bay"), holding, in direct
contrast to Bourne Valley, that no state action
supported a challenge under the Due Process Clause of the
United States Constitution. The Nevada Supreme Court further
concluded in Saticoy Bay that since due process was
not implicated and it "need not determine whether NRS
116.3116 et seq. incorporates the notice requirements set
forth in NRS 107.090, " thereby requiring notice to
subordinate mortgage lenders. Saticoy Bay, 388 P.3d
Nevada Supreme Court's decision in Saticoy Bay
contradicts the Bourne Valley court's
conclusions and creates a split in authority between the
state and federal courts on the same issue.
Accordingly, on April 26, 2017, a certified a question was
presented to the Nevada Supreme Court regarding NRS 116's
notice requirement. See The Bank of New York Mellon v.
Star Hill Homeowners Association, et a/., Case No.
2:16-cv-02561-RFB-PAL, [ECF No. 41].
Specifically, the certified question presented is as follows:
"Whether NRS § 116.31168(1)'s incorporation of
NRS § 107.090 requires homeowner's association to
provide notices of default to banks even when a bank does not
Nevada Supreme Court issued an Order accepting the certified
question on June 13, 2017. See Nevada Supreme Court,
Case No. 72931. Briefing in that matter is currently
completed and the ...