RICHARD F. BOULWARE, II, District Judge.
Before the Court are five motions: Defendant Saticoy Bay, LLC Series 9538 Diamond Bridge's ("Saticoy Bay") motion to dismiss and motion for summary judgment; Defendant Ashley Ridge Association's (the "Association") motion to dismiss and motion for summary judgment; and Plaintiff HSBC Bank USA, National Association as Trustee for Deutsche ALT-A Securities Mortgage Loan Trust, Series 2006-AR2's ("HSBC") motion for summary judgment. ECF Nos. 70 - 73, 76. For the reasons stated below, the Court grants Defendants' summary judgment motions and denies the other motions.
HSBC sued defendants on January 31, 2017 and filed a notice of lis pendens on February 10, 2017. ECF Nos. 1, 6. A scheduling order was initially entered on May 9, 2017. ECF No. 38. But the Court stayed this matter and denied all pending motions without prejudice on March 22, 2018, pending the Nevada Supreme Court's decision on the certified question in
Saticoy Bay now moves to dismiss the complaint and for summary judgment. ECF Nos. 70, 71. Both motions were fully briefed. ECF Nos. 79, 81, 82, 85. Likewise, the Association moves to dismiss the complaint. ECF No. 73. The motion was opposed but no reply was filed. ECF Nos. 80. The Association also moves for summary judgment. ECF No. 72. Again, the motion was opposed but no reply was filed. ECF No. 74. HSBC moves for summary judgment as well. ECF No. 76. The motion was fully briefed. ECF Nos. 83, 84, 86. The Court held oral arguments on July 25, 2019 on all the dispositive motions. ECF No. 89.
Montree Wanpakdee purchased the property at 9538 Diamond Bridge Avenue, Las Vegas, Nevada 89166 in March 2006 by obtaining a loan. The loan was secured by a deed of trust that identified Silver State Financial Services, Inc. as the lender and beneficiary and Stewart Title as the trustee. The deed of trust was recorded on March 30, 2006. The beneficial interest under the deed of trust was assigned to HSBC on September 7, 2012.
The property sits in a property governed by the Association's covenants, conditions, and restrictions ("CC&Rs"). Under the CC&Rs, property owners must pay homeowners' association fees. Wanpakdee failed to timely pay the dues owed to the Association. Thus, the Association initiated a nonjudicial foreclosure under Chapter 116 of the Nevada Revised Statutes ("NRS") by recording a notice of delinquent assessment against the property on March 7, 2011.
The Association foreclosed on the property on May 5, 2015, selling the property to Saticoy Bay for $28,200.00. A foreclosure deed was recorded on June 30, 2015 in favor of Saticoy Bay. HSBC did not attend the sale and did not attempt to stop the sale.
The parties dispute whether the foreclosure notices were mailed to or received by HSBC or its predecessors. Saticoy Bay and the Association contend the notices were mailed in compliance with NRS Chapter 116, pointing to exhibits ECF No. 71-5, 71-8, and 71-10.
Summary 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);
The Court begins by addressing the timeliness of the foreclosure sale. HSBC argues that the Association's lien was expired because a Nevada statute imposes a three-year limitation on liabilities created by statute. The Court disagrees. While the Association's superpriority lien was established by NRS Chapter 116, the three-year statute of limitations imposed by NRS 11.190 does not apply.
The Court is also unpersuaded by HSBC's arguments that NRS Chapter 116 was facially unconstitutional under
HSBC's as-applied due process challenge fails as well. HSBC challenges the foreclosure sale as violating its due process rights as-applied due to insufficient notices or the failure to mail the notices to HSBC or its predecessors-in-interest. The Court again disagrees, incorporating by reference its reasoning in
Additionally, the Court notes that the Association recorded its notice of delinquent assessment against the property and its notice of default and election to sell in 2011—prior to HSBC acquiring its interest in the property on September 7, 2012. Thus, not only do the certificates of mailing indicate that HSBC's predecessors-in-interest received notice of the lien and the looming foreclosure sale long before the foreclosure sale occurred, the public record also provided notice of the lien and the forthcoming foreclosure sale prior to HSBC acquiring its interest in the property.
The Court finally finds that HSBC cannot prevail on its arguments that the sale was commercially unreasonable because it has failed to establish any defects or fraud, oppression, or unfairness in the sale.
As to the remaining claims, the Court dismisses claim four, finding that a claim for an injunction is not a stand-alone claim; it is a request for a specific form of relief. The Court also dismisses claim five, finding HSBC fails to provide any argument or evidence in response to Saticoy Bay's arguments for summary judgment.
In conclusion, the Court finds that the foreclosure sale in this case was consistent with Nevada law and extinguished the prior deed of trust.