United States District Court, D. Nevada
RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE.
contested motions come before the Court: (1) Defendant SFR
Investments Pool 1, LLC's Motion to Dismiss, ECF Nos.
22-24, 30; (2) Plaintiff Bank of America, N.A.'s Motion
for Partial Summary Judgment, ECF Nos. 34, 38, 42, 46; (3)
Defendant SFR's Motion for Summary Judgment, ECF Nos. 35,
39, 47; and (4) Defendant Giavanna Homeowners
Association's (the “HOA”) Motion for Summary
Judgment, ECF Nos. 37, 40, 41.
matter arises from a nonjudicial foreclosure sale conducted
under Chapter 116 of the Nevada Revised Statutes
(“NRS”) in September 2012. See ECF No.
1. Nearly six years after the foreclosure sale, Plaintiff
sued Defendants on February 15, 2018, seeking an order to
void the foreclosure sale or to declare that Plaintiff's
interest in the at-issue property was not extinguished by the
foreclosure sale. Id. In its Complaint, Plaintiff
asserts three claims: quiet title, declaratory relief, and
injunctive relief. Id.
brings its quiet title claim under the following: (1) the due
process clauses in the U.S. and the Nevada constitutions; (2)
the Supremacy Clause in the U.S. Constitution; (3) NRS
Chapter 116; (4) the Covenants, Conditions, and Restrictions
(“CC&Rs) governing the at-issue property; and (5)
principles of equity. In its declaratory relief claim,
Plaintiff seeks an order that it may judicially foreclose on
the property under NRS 107 et seq. Plaintiff also
asserts an injunctive relief claim, asking the Court to
prohibit Defendants from encumbering the property and to
require Defendant SFR to pay all taxes, insurance fees, and
homeowners' associations dues during the pendency of this
Defendants SFR and the HOA either answered the Complaint or
filed motions evidencing their participation in this matter,
see ECF Nos. 17 and 22, Defendant SBW Investments,
LLC has not yet participated, see docket generally.
Plaintiff filed a Notice of Intent to Default Defendant SBW
on August 29, 2018. ECF No. 32. Default judgment has not yet
been executed. See docket generally.
parties completed mediation through the Nevada Real Estate
Division (“NRED”) on January 14, 2019. ECF No.
45-1 (indicating Defendants refused to participate and
settlement was not reached). Now, Plaintiff and Defendants
SFR and the HOA each seek to resolve this matter through
dispositive motions. ECF Nos. 22, 34, 35, 37.
Court first resolves the pending Motion to Dismiss. Because
the Motion to Dismiss results in the dismissal of all of
Plaintiff's claims, the Court denies the three pending
Motions for Summary Judgment without prejudice as moot
without further discussion.
Complaint, Plaintiff alleges that two nonparties purchased
the property by obtaining a loan from nonparty CTX Mortgage
Company, LLC. The loan was secured by a note and deed of
trust (“senior deed of trust”), which were
recorded on August 27, 2008.
on October 25, 2010, Defendant HOA initiated the process to
conduct a nonjudicial foreclosure sale under NRS Chapter 116
by filing a Notice of Delinquent Assessment. After filing
additional notices as required by NRS Chapter 116, the HOA
ultimately foreclosed on the property on September 18, 2012
and recorded a corresponding Trustee's Deed Upon Sale on
September 19, 2012.
alleges that the nonjudicial foreclosure sale did not
extinguish the senior deed of trust, which Plaintiff acquired
through multiple assignments. Plaintiff alleges that the deed
of trust beneficiary has a right to judicially or
nonjudicially foreclose on a deed of trust and that a
ten-year statute of limitations, at minimum, applies to such
an action. Plaintiff also alleges ...