United States District Court, D. Nevada
C. MAHAN, UNITED STATES DISTRICT JUDGE
before the court is defendant SFR Investments Pool 1,
LLC's (“SFR”) motion for reconsideration.
(ECF No. 92). Plaintiffs Federal Home Loan Mortgage
Corporation (“Freddie Mac”) and M&T Bank
“plaintiffs”) filed a response (ECF No. 97), to
which SFR replied (ECF No. 98).
before the court is plaintiffs' motion for leave to file
surreply. (ECF No. 99). SFR filed a response (ECF No. 100),
to which plaintiffs replied (ECF No. 101).
action arises from a dispute over real property located at
8186 Deadwood Bend court, Las Vegas, Nevada 89178 (“the
property”). (ECF No. 1).
Franke purchased the property on or about November 2, 2006.
(ECF No. 28-2). Franke financed the purchase with a loan in
the amount of $202, 250.00 from Universal American Mortgage
Company, LLC (“Universal”). Id.
Universal secured the loan with a deed of trust, which names
Universal as the lender, Stewart Title Company as the
trustee, and Mortgage Electronic Registration Systems, Inc.
(“MERS”) as the beneficiary as nominee for the
lender and lender's successors and assigns. Id.
January 5, 2007, Freddie Mac purchased the loan, thereby
obtaining a property interest in the deed of trust. (ECF No.
22). On May 23, 2012, MERS assigned the deed of trust to
M&T, Freddie Mac's authorized servicer of the loan.
(ECF Nos. 22, 28-12).
24, 2011, Diamond Creek Community Association (“Diamond
Creek”), through its agent Alessi & Koenig, LLC
(“A&K”), recorded a notice of delinquent
assessment lien (“the lien”) against the property
for Franke's failure to pay Copper Creek in the amount of
$930.00. (ECF No. 28-8). On December 1, 2011, Diamond Creek
recorded a notice of default and election to sell pursuant to
the lien, stating that the amount due was $2, 105.00 as of
November 7, 2011. (ECF No. 28-9).
7, 2012, Diamond Creek recorded a notice of foreclosure sale
against the property. (ECF No. 28-11). On July 20, 2012,
Diamond Creek sold the property in a nonjudicial foreclosure
sale to SFR in exchange for $5, 200.00. (ECF No. 28-13). On
July 24, 2012, SFR recorded the deed of foreclosure with the
Clark County recorder's office. Id.
7, 2017, Freddie Mac and M&T filed a complaint, alleging
four causes of action: (1) declaratory relief under 12 U.S.C.
§ 4617(j)(3) against SFR; (2) quiet title under 12
U.S.C. § 4617(j)(3) against SFR; (3) declaratory relief
under the Fifth and Fourteenth Amendments against all
defendants; and (4) quiet title under the Fifth and
Fourteenth Amendments against SFR. (ECF No. 1).
November 15, 2018, the court granted plaintiffs' motion
for summary judgment (ECF No. 21), holding that the
foreclosure sale did not extinguish the deed of trust. (ECF
No. 90). The court also declined to grant SFR Federal Rule of
Civil Procedure 56(d) relief because the evidence before the
court was sufficient to preclude a genuine dispute of
material fact pertaining to Freddie Mac's interest in the
deed of trust. Id. On that same day, the clerk
entered judgment. (ECF No. 91).
December 13, 2018, SFR filed a motion for reconsideration,
arguing that new evidence shows that there is a genuine
dispute of material fact with respect to Freddie Mac's
interest in the deed of trust. (ECF No. 92). On December 17,
2018, SFR appealed to the Ninth Circuit. (ECF No. 93). On
January 8, 2019, plaintiffs moved for leave to file a
surreply in opposition to SFR's motion for
reconsideration. (ECF No. 99).
motion for reconsideration “should not be granted,
absent highly unusual circumstances.” Marlyn
Nutraceuticals, Inc. v. Mucos Pharma GmbH & Co., 571
F.3d 873, 880 (9th Cir. 2009). “Reconsideration is
appropriate if the district court (1) is presented with newly
discovered evidence, (2) committed clear error or the initial
decision was manifestly unjust, or (3) if there is an