United States District Court, D. Nevada
RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE
the Court are two contested motions: Defendant Green Tree
Servicing, LLC's Motion for Summary Judgment, ECF No. 48,
and Plaintiff Saticoy Bay LLC Series 452 Crocus Hill's
Motion for Summary Judgment, ECF No. 52.
Saticoy Bay LLC Series 452 Crocus Hill sued Defendants Green
Tree Servicing, LLC and Quality Loan Service Corporation on
April 23, 2015 in state court. ECF No. 1 at 9. Defendants
removed the matter to this Court on May 27, 2015 on the basis
of diversity jurisdiction. ECF No. 1.
Complaint, Saticoy Bay alleges that it obtained title of a
Las Vegas property by way of a nonjudicial foreclosure
conducted by the governing homeowners' association under
Chapter 116 of the Nevada Revised Statutes
(“NRS”) in 2014. ECF No. 1 at 9-10. Saticoy Bay
contends that the foreclosure extinguished a deed of trust
that encumbered the property at the time of the foreclosure.
Id. Because Green Tree filed a notice of default and
election to sell after the foreclosure, Saticoy Bay asserts
three claims: (1) injunctive relief to prohibit Green Tree
from foreclosing on the property under its interests to the
deed of trust; (2) declaratory relief under NRS 40.010 that
Saticoy Bay purchased the property free and clear of the deed
of trust; and (3) declaratory relief under NRS 40.010 that
the deed of trust was extinguished by the foreclosure sale.
Id. at 9 -11.
Tree answered the Complaint on June 1, 2015. ECF No. 5. It
asserts the following counterclaims against Saticoy Bay: (1)
quiet title or declaratory relief, finding the deed of trust
survived the foreclosure sale; (2) permanent and preliminary
injunctive relief to prohibit Saticoy Bay from selling,
transferring, or encumbering the property with claims that
its interest is superior to that of Green Tree; (3) wrongful
foreclosure; (4) negligence; (5) negligence per se; (6)
breach of contract; (7) misrepresentation; (8) unjust
enrichment; and (9) declaratory relief that Green Tree's
interest is superior to that of Saticoy Bay or that the
foreclosure is not valid. Id. Green Tree asserted
certain claims as third-party claims against the governing
homeowners' association and its trustee, San Marcos at
Summerlin Homeowners (“the HOA”) and Assessment
Management Services (“AMS”), respectively.
parties filed motions for summary judgment, which were denied
without prejudice on March 2, 2017. ECF Nos. 24, 26, 33. When
denying the motion, the Court also stayed this matter pending
the resolution of an appeal from the Ninth Circuit's
decision in Bourne Valley Court Tr. v. Wells Fargo Bank,
NA, 832 F.3d 1154, 1159-60 (9th Cir. 2016) and from the
Nevada Supreme Court's decision in Saticoy Bay LLC
Series 350 Durango 104 v. Wells Fargo Home Mortg., a Div. of
Wells Fargo Bank, N.A., 388 P.3d 970, 974 (Nev. 2017).
The stay was lifted on September 17, 2018, and the refiling
of dispositive motions was ordered. ECF No. 41. Green Tree
now moves for summary judgment, ECF No. 48, as does Saticoy
Bay, ECF No. 52. Both motions were fully briefed. ECF Nos.
Court makes the following findings of undisputed and disputed
matter concerns a nonjudicial foreclosure on a property
located at 452 Crocus Hill Street, Las Vegas, Nevada 89138.
The property sits in a community governed by the HOA. The HOA
requires the community members to pay community dues.
Sun Kim and June Young Kim borrowed funds from KH Financial,
L.P. to purchase the property in 2003. To obtain the loan,
the Kims executed a promissory note and a corresponding deed
of trust to secure repayment of the note. The deed of trust,
which lists the Kims as the borrowers and KH Financial as the
lender and the beneficiary, was recorded on July 31, 2003. KH
Financial assigned the deed of trust to Bank of America, N.A.
in August 2011. Bank of America then assigned the deed of
trust to Green Tree on August 28, 2013.
Kims failed to pay the required HOA dues. Thus, in June 2013,
the HOA recorded a notice of delinquent assessment lien. The
HOA subsequently recorded a notice of default and election to
sell and then a notice of foreclosure sale. On October 30,
2014, the HOA held a foreclosure sale on the property under
NRS Chapter 116. Saticoy Bay purchased the property at ...