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Springland Village Homeowners Association v. Pearman

United States District Court, D. Nevada

July 23, 2018

SPRINGLAND VILLAGE HOMEOWNERS ASSOCIATION, a Nevada Non-Profit Cooperative Corporation, Plaintiff,
v.
JENNIE M. PEARMAN, et al., Defendants. FEDERAL NATIONAL MORTGAGE ASSOCIATION, Plaintiff;
v.
DWIGHT CARLSON AS TRUSTEE FOR PYRAMID TRIBE TR-116, Defendant. And Related Counterclaims.

          ALDRIDGE PITE, LLP Jory C. Garabedian Attorney for Defendant Federal National Mortgage Association

          KERN & ASSOCIATES, LTD. Karen M. Ayarbe Attorney for Plaintiff' Springland Village Homeowners Association

          STIPULATION AND ORDER TO REMAND LEAD INTERPLEADER CASE

         Defendant in Lead Case FEDERAL NATIONAL MORTGAGE ASSOCIATION ("Fannie Mae") and Plaintiff in Lead Case SPRINGLAND VILLAGE HOMEOWNERS ASSOCIATION ("Springland") by and through their respective attorneys of record, hereby stipulate and agree to the remand of the Lead Interpleader Case as follows:

         1. The Lead Case is an interpleader action originally filed in the Second Judicial District Court of Nevada (Washoe County) on May 11, 2016, which seeks to disburse proceeds from an NRS 116 foreclosure sale of the real property located at 2402 Sunny Slope Drive, Unit 9, Sparks, Nevada 89434 (the "Property") occurring on or about January 22, 2016 (hereinafter the "Lead Interpleader Case").

         2. Fannie Mae removed the Lead Interpleader Case to this Court on July IS, 2016 on the basis of Fannie Mae's charter and the Ninth Circuit decision in Lightfoot v. Cendant Mortgage Corporation, 769 F.3d 681, 682 (9* Cir. 2014). (See Lead Interpleader Case ECF No. 1).

         3. On September 2, 2016, Fannie Mae filed a separate lawsuit captioned, Federal National Mortgage Association v. Dwight Carlson as Trustee for Pyramid Tribe TR-116 which is Member Case No. 3:16-cv-00520-MMD-WGC (the "Member Title Case").

         4. The Member Title Case was an action for declaratory relief and quiet title against Dwight Carlson as Trustee for Pyramid Tribe TR-116 ("Pyramid Tribe") seeking to declare Fannie Mae's first Deed of Trust as a valid remaining encumbrance on the Property. Pyramid Tribe was the purchaser of the Property at the same NRS 116 foreclosure sale at issue in the Lead Interpleader Case. Fannie Mae alleged that this Court had subject matter jurisdiction based on federal question jurisdiction arising under 12 U.S.C. § 4617(jX3) (the "Federal Foreclosure Bar") and based on diversity jurisdiction. (See Member Title Case ECF No. 1).

         5. On September 7, 2016, Fannie Mae filed a Notice of Related case in both the Member Title Case (ECF No. 4) and me Lead Interpleader Case (ECF No. 11) wherein Fannie Mae stated that it would be desirable for the same district judge and magistrate judge to preside over both actions to ensure a coordinated timing and sequence of adjudicating title issues in the Member Title Case and me ultimate disbursement of proceeds from the same NRS 116 foreclosure sale in the Lead Interpleader Case.

         6. On October 3, 2016, the Court entered a Reassignment Order wherein the Member Title Case was assigned to the same district judge and magistrate judge. (See Member Title Case ECF No. 8).

         7. On January 20, 2017, the Court entered an Order in the Lead Interpleader Case requesting that Fannie Mae show cause why the Lead Interpleader Case should not be remanded for lack of jurisdiction because of the U.S. Supreme Court's overturning of the Ninth Circuit decision in Lightfoot. (See Lead Interpleader Case ECF No. 24).

         8. On February 6, 2017, Fannie Mae filed a Response to Order conceding that die Lead Interpleader Case should be remanded. However, Fannie Mae asserted in the Response that the Court maintained subject matter jurisdiction over the Member Title Case under me non-merger rule and specifically because the Court had both federal question jurisdiction and diversity jurisdiction over the Member Title Case. (See Lead Interpleader Case ECF No. 25, citing Johnson v. Manhattan Ry. Co., 289 U.S. 479, 496-97 (1933); Continental Airlines v. Goodyear Tire & Rubber Co., 819 F.2d 1519, 1523 n.l (9* Cir. 1987); Cetta v. Togum, 173 F.3d 909, 912 (3" Cir. 1999) (holding me district court erred in remanding both consolidated cases when it had diversity jurisdiction over one of mem)).

         9. No subsequent order was issued remanding the Lead Interpleader Case back to state court.

         10. On July 17, 2017, Fannie Mae filed die same Motion for Summary Judgment in bom me Lead Interpleader Case (ECF No. 28) and the Member Title Case (ECF No. 17) solely on the basis mat 12 U.S.C. § 46T7(jX3) protected Fannie Mae's Deed of Trust from being extinguished by me NRS 116 foreclosure sale.

         11. The Motion for Summary Judgment requested that Fannie Mae's request for quiet title or declaratory relief be granted insofar as any interest in die Property of Member Tide Case Defendant Pyramid Tribe is subject to Fannie Mae's Deed of Trust pursuant to die Federal Foreclosure Bar. However, me Motion for Summary Judgment did ...


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