Filed: Jun. 12, 2017
Latest Update: Jun. 12, 2017
Summary: SFR INVESTMENTS POOL 1, LLC'S DEMAND FOR SECURITY OF COSTS PURSUANT TO NRS 18.130(1) PEGGY A. LEEN , Magistrate Judge . Defendant SFR INVESTMENTS POOL 1, LLC ("SFR") hereby demands that Plaintiff CARRINGTON MORTGAGE SERVICES, LLC ("CARRINGTON" or "Lender"), an out-of-state resident, post a cost bond pursuant to NRS 18.130(1). In Nevada, if a plaintiff resides outside of Nevada or is a foreign corporation, like the Lender, "security for the costs and charges which may be awarded against su
Summary: SFR INVESTMENTS POOL 1, LLC'S DEMAND FOR SECURITY OF COSTS PURSUANT TO NRS 18.130(1) PEGGY A. LEEN , Magistrate Judge . Defendant SFR INVESTMENTS POOL 1, LLC ("SFR") hereby demands that Plaintiff CARRINGTON MORTGAGE SERVICES, LLC ("CARRINGTON" or "Lender"), an out-of-state resident, post a cost bond pursuant to NRS 18.130(1). In Nevada, if a plaintiff resides outside of Nevada or is a foreign corporation, like the Lender, "security for the costs and charges which may be awarded against suc..
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SFR INVESTMENTS POOL 1, LLC'S DEMAND FOR SECURITY OF COSTS PURSUANT TO NRS 18.130(1)
PEGGY A. LEEN, Magistrate Judge.
Defendant SFR INVESTMENTS POOL 1, LLC ("SFR") hereby demands that Plaintiff CARRINGTON MORTGAGE SERVICES, LLC ("CARRINGTON" or "Lender"), an out-of-state resident, post a cost bond pursuant to NRS 18.130(1).
In Nevada, if a plaintiff resides outside of Nevada or is a foreign corporation, like the Lender, "security for the costs and charges which may be awarded against such plaintiff may be required by defendant, by the filing and service on plaintiff of a written demand therefor within the time limited for answering the complaint." NRS 18.130(1). When a defendant demands a cost bond, "all proceedings in the action shall be stayed" until plaintiff files "an undertaking, executed by two or more persons, to be filed with the clerk, to the effect that they will pay such costs and charges as may be awarded against the plaintiff by judgment, or in the progress of the action" or "in lieu of such undertaking, the plaintiff may deposit $500, lawful money, with the clerk of the court." Id. "After the lapse of 30 days from the service of notice that security is required, or of an order for new or additional security, upon proof thereof, and that no undertaking as required has been filed, the court or judge may order the action to be dismissed." NRS 18.130(4).
"It is the policy of the United States District Court for the District of Nevada to enforce the requirements of NRS 18.130 in diversity actions." Feagins v. Trump Organization, 2012 WL 925027 (D. Nev.)(citing Hamar v. Hyatt Corp., 98 F.R.D. 305, 305-6 (D. Nev. 1983); Arrambide v. St. Mary's Hosp., Inc., 647 F.Supp. 1148, 1149 (D. Nev. 1986)).
Here CARRINGTON is not a Nevada citizen, but rather a national mortgage services company organized under the laws of the United States, with its main office located in Delaware. Accordingly, SFR demands that the Lender post a $500 cost bond within thirty (30) days and that the proceedings be stayed until such cost bond is posted. Should the Lender fail to comply with the requirements of NRS 18.130 within thirty (30) days, SFR requests this action be dismissed.
IT IS ORDERED that, as the court has approved the parties' Stipulation and Order for Security of Costs, the Motion is DENIED as moot.
