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Carrington Mortgage Services, LLC v. Devonridge Homeowners Association, Inc.

United States District Court, D. Nevada

March 30, 2019

CARRINGTON MORTGAGE SERVICES, LLC, a California corporation, Plaintiff,
v.
DEVONRIDGE HOMEOWNERS ASSOCIATION, INC., a Nevada corporation; SFR INVESTMENTS POOL 1, LLC, a Nevada limited liability company, Defendants. DEVONRIDGE HOMEOWNERS ASSOCIATION, INC., a Nevada corporation; Third-Party Plaintiff,
v.
NEVADA ASSOCIATION SERVICES, INC., Third-Party Defendant.

          ORDER

          RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE.

         I. INTRODUCTION

         Before the Court are three contested motions: Defendant SFR Investments Pool 1, LLC's Motion to Dismiss, ECF No. 33; SFR's Motion for Summary Judgment, ECF No. 39; and Plaintiff Carrington Mortgage Services's Motion for Summary Judgment, ECF No. 37.

         II. PROCEDURAL BACKGROUND

         This matter arises from a nonjudicial foreclosure sale conducted by a homeowners' association under Nevada Revised Statutes (“NRS”) Chapter 116 in 2013. ECF No. 1.

         Carrington sued SFR and Devonridge Homeowners Association, Inc. (“the HOA”) on July 5, 2017. Id. Carrington alleged two claims: (1) quiet title or declaratory relief against all Defendants and (2) unjust enrichment against SFR. Id. Carrington filed a notice of lis pendens on July 6, 2017. ECF No. 5.

         The HOA answered the complaint on August 11, 2017. ECF No. 11. It then filed a third-party complaint against Nevada Association Services, Inc. (“NAS”) on September 7, 2017. ECF No. 13.

         After SFR moved to dismiss the complaint on January 2, 2018, ECF No. 20, the Court stayed the matter pending the Nevada Supreme Court's decision on a certified question and denied all pending motions without prejudice to refiling. ECF No. 25. The Nevada Supreme Court issued its decision in August 2018.

         The HOA was dismissed from this matter on May 8, 2018 per stipulation. ECF Nos. 26, 27. NAS was then voluntarily dismissed. ECF No. 28.

         SFR now moves again to dismiss the complaint and moves for summary judgment. ECF Nos. 33, 39. Carrington opposed the motions, and SFR replied. ECF Nos. 35, 36, 40, 43.

         Carrington also moves for summary judgment. ECF No. 37. SFR opposed the motion, and Carrington replied. ECF Nos. 41, 42.

         III. MOTION TO DISMISS

         The Court first turns to the pending motion to dismiss.

         a. Factual Background

         The Complaint alleges the following:

         This matter concerns the property at 813 Pirates Cave Court, North Las Vegas, Nevada 89032. ECF No. 1. The HOA manages and maintains the common unit amenities for the community in which the property sits.

         On October 7, 2008, nonparty Andrea Ketay purchased the property for $194, 761.00 by executing a promissory note in favor of Taylor, Bean & Whitaker Mortgage Corp. Ketay also executed a corresponding deed of trust, which was recorded on October 10, 2008. The deed of trust encumbers the property as security to ensure repayment of the loan.

         Ketay defaulted on both the loan and the payment of homeowners' association dues. Based on the delinquent homeowners' association dues, nonparty Bank of America requested a super-priority lien account statement from NAS in April 2011. NAS served as the HOA's agent. Bank of America made the request through its attorneys at the law firm of Miles, Bauer, Bergstrom & Winters, LLP.

         Bank of America requested the super-priority lien account statement for the express purpose of curing the super-priority portion of HOA's lien. NAS refused to provide a super-priority lien statement, instead providing a full lien account statement showing a balance of $2, 231.31. Based on the full lien statement, the law firm calculated the super-priority portion ...


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