United States District Court, D. Nevada
RICHARD F. BOULWARE, II UNITED STATES DISTRICT JUDGE
the Court are Defendant United States of America Treasury
Department, Internal Revenue Service’s
(“IRS”) Renewed Motion for Summary Judgment,
Plaintiff Shirehampton Drive Trust’s
(“Shirehampton”) Motions for Summary Judgment,
and Defendant JP Morgan Chase Bank, N.A’s
(“Chase”) Motion for Summary Judgment. ECF Nos.
42 – 46. For the following reasons, the Court grants
the IRS’s motion, denies Chase’s motion and
grants Shirehampton’s motion only as against Chase.
Shirehampton sued Defendants on September 1, 2016 in the
Eighth Judicial District Court in Clark County, Nevada. ECF
No. 1-1. Shirehampton seeks a declaration from this Court
that a Las Vegas property that it obtained at a foreclosure
sale in 2013 was not encumbered by Chase’s deed of
trust. To that end, Shirehampton asserts claims for
injunctive relief, quiet title and declaratory relief. The
IRS removed the case to federal court on September 28, 2016.
ECF No. 1. The IRS answered and counterclaimed against
Plaintiff (and crossclaimed against Defendants) to enforce
federal tax liens pursuant to 26 U.S.C. §§ 6321,
6322 and 7401 on October 12, 2016. ECF No. 6. Chase answered
the complaint on October 27, 2016 and asserted counterclaims
for quiet title under NRS 40.010, declaratory relief under
NRS 30.010 and 28 U.S.C. § 2201, and unjust enrichment.
ECF No. 8. Shirehampton answered the counterclaims. ECF Nos.
11, 13. On March 13, 2017, the Court dismissed Defendants MTC
Financial Inc and Louisa Oakenell without prejudice. ECF No.
On August 24, 2017, all remaining parties moved for summary
judgment. ECF Nos. 24–26, 28. On March 22, 2018, the
Court administratively stayed the case pending the Nevada
Supreme Court’s decision in SFR Investments Pool 1,
LLC v. Bank of New York Mellon, 422 P.3d 1248 (Nev.
2018) and denied all pending summary judgment motions without
prejudice. On August 23, 2018, the Court lifted the stay. ECF
No. 41. All remaining parties moved for summary judgment on
September 24, 2018. ECF Nos. 42 –45. All motions were
fully briefed. ECF Nos. 47–50, 53 – 56.
Court makes the following findings of undisputed and disputed
matter concerns a nonjudicial foreclosure on a property
located at 705 Shirehampton Drive, Las Vegas, Nevada 89178
(“the property”). The property sits in a
community governed by the Essex at Huntington Homeowners
Association (“HOA”). The HOA requires its
community members to pay dues.
Oakenell borrowed funds from MetLife Home Loans, a Division
of MetLife Bank, N.A. (“MetLife”) to purchase the
property in 2008. To obtain the loan, Oakenell executed a
promissory note and a corresponding deed of trust to secure
repayment of the note. The deed of trust, which lists
Oakenell as the borrower, MetLife as the lender and Mortgage
Electronic Registration Systems, Inc., (“MERS”)
as the beneficiary, was recorded on December 24, 2008. MERS
assigned the deed of trust to Chase in May 2013.
fell behind on HOA payments. The HOA, through its agent Red
Rock Financial Services, LLC (“Red Rock”) sent
Oakenell a demand letter by certified mail for the collection
of unpaid assessments on June 26, 2009. On July 21, 2009, the
HOA, through its agent, recorded a notice of delinquent
assessment lien. The HOA sent Oakenell a copy of the notice
of delinquent assessment lien on July 24, 2009. The HOA
subsequently recorded a notice of default and election to
sell on October 21, 2009 and then a notice of foreclosure
sale on September 18, 2012. Red Rock mailed copies of the
notice of default and election to sell to Oakenell, the HOA,
Republic Services, the IRS, and Metlife Home Loans. Red Rock
did not mail a copy of the notice of default and election to
sell to MERS. On January 28, 2013, the HOA held a foreclosure
sale on the property under NRS Chapter 116. Shirehampton
purchased the property at the foreclosure sale. A foreclosure
deed in favor of Shirehampton was recorded on February 7,
addition to falling behind on her HOA payments, however,
Oakenell also stopped paying federal income taxes. The IRS
subsequently filed notices of federal tax liens against
Oakenell at the Clark County Recorder’s office on May
1, 2009 and June 24, 2009. As of October 1, 2018, Oakenell
had accrued $250, 953. 37 in income tax liability plus daily
judgment is appropriate when the pleadings, depositions,
answers to interrogatories, and admissions on file, together
with the affidavits, if any, show “that there is no
genuine dispute as to any material fact and the movant is
entitled to judgment as a matter of law.” Fed.R.Civ.P.
56(a); accord Celotex Corp. v. Catrett, 477 U.S.
317, 322 (1986). When considering the propriety of summary
judgment, the court views all facts and draws all inferences
in the light most favorable to the nonmoving party.
Gonzalez v. City of Anaheim, 747 F.3d 789, 793 (9th
Cir. 2014). If the movant has carried its burden, the
non-moving party “must do more than simply show that
there is some metaphysical doubt as to the material
facts…. Where the record taken as a whole could not
lead a rational trier of fact to find for the nonmoving
party, there is no genuine issue for trial.” Scott
v. Harris, 550 U.S. 372, 380 (2007) (alteration in