Hurst-Castl v. Long Term Capital Partnership VI, LLC

CourtDistrict Court, D. Nevada
DecidedApril 30, 2025
Docket2:24-cv-02334
StatusUnknown

This text of Hurst-Castl v. Long Term Capital Partnership VI, LLC (Hurst-Castl v. Long Term Capital Partnership VI, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hurst-Castl v. Long Term Capital Partnership VI, LLC, (D. Nev. 2025).

Opinion

1 UNITED STATES DISTRICT COURT

2 DISTRICT OF NEVADA

3 TRACY HURST-CASTL, 4 Plaintiff, Case No.: 2:24-cv-02334-GMN-MDC 5 vs. ORDER 6 LONG TERM CAPITAL PARTNERSHIP VI, 7 LLC, et al.,

8 Defendants. 9 Pending before the Court is a Motion to Dismiss, (ECF No. 12), filed by Defendants 10 Long Term Capital Partnership VI, LLC (“LTCP”) and FCI Lender Services, Inc. Because 11 Plaintiff Tracy Hurst-Castl subsequently filed her First Amended Complaint (“FAC”), (ECF 12 No. 20), the Court DENIES as MOOT the first Motion to Dismiss. 13 Also pending before the Court is Plaintiff’s Motion to Strike, (ECF No. 31). Defendants 14 filed a Response, (ECF No. 42), to which Plaintiff replied, (ECF No. 51). Because Plaintiff 15 was properly served, the Court DENIES the Motion to Strike. 16 Further pending before the Court is Plaintiff’s Motion to Take Discovery Prior to Ruling 17 on Motion to Dismiss, (ECF No. 34). Defendants filed a Response, (ECF No. 57). Plaintiff did 18 not file a Reply. Because Defendants’ Motion to Dismiss does not contain evidence that 19 converts it into a Motion for Summary Judgment, the Court DENIES the Motion to Take 20 Discovery Prior to Ruling on the operative Motion to Dismiss. 21 Next, pending before the Court is Defendants’ Motion to Dismiss the First Amended 22 Complaint, (ECF No. 25). Plaintiff filed a Response, (ECF No. 32), to which Defendants 23 replied, (ECF No. 43). Because Plaintiff’s claims are barred by res judicata, the Court 24 GRANTS Defendants’ second Motion to Dismiss. 25 1 Lastly, pending before the Court are Plaintiff’s Motions for Temporary Restraining 2 Order and Preliminary Injunction, (ECF Nos. 35, 40, 47, 48, 61, 62). Defendants filed 3 Responses, (ECF Nos. 55, 56, 57). Plaintiff filed a Reply, (ECF Nos. 64). Because Plaintiff 4 cannot succeed on the merits of her claims, the Court DENIES her Motions for Temporary 5 Restraining Order and Preliminary Injunction. 6 I. BACKGROUND 7 This action arises out of the foreclosure proceedings initiated against the property 8 located at 3910 White Fir Way, Las Vegas, Nevada, 89124, (the “Property”), formally known 9 as 123 Rainbow Canyon Blvd., Mt. Charleston, Nevada, 89124. (See generally FAC, ECF No. 10 20). On June 1, 2007, Plaintiff obtained a mortgage from Washington Mutual Bank in the 11 principal amount of $2,250,000 to re-finance the Property. (See generally Promissory Note, Ex. 12 A to Req. Judicial Notice, ECF No. 14-1). A Promissory Note was executed, as well as a Deed 13 of Trust that pledged the Property as security (the Deed of Trust and Promissory Note are 14 collectively referred to as the “Loan”). (See id.); (see also Deed of Trust, Ex. B. to Req. Judicial 15 Notice, ECF No. 14-2). The Loan was assigned to various entities over the years and in April 16 2022, the interest in the Deed of Trust was transferred to Defendant LTCP. (See LTCP 17 Assignment Deed of Trust, Ex. I to Req. Judicial Notice, ECF No. 14-9). Plaintiff disputes that 18 Defendants possess an interest in the Property. (See generally FAC). 19 Plaintiff defaulted on her loan a year after obtaining it. (See Default Notice, Ex. J to Req.

20 Judicial Notice, ECF No. 14-10). Thereafter, Plaintiff initiated numerous bankruptcy 21 proceedings. (Case No. 10-20635-bam, Bankr. Dist. Nev.; Case No. 10-28140-bam, Bankr. 22 Dist. Nev.; Case No. 12-23874-btb, Bankr. Dist. Nev.; Case No. 23-10410-gs, Bankr. Dist. 23 Nev.). Plaintiff also initiated several actions in Nevada state court challenging the Loan and the 24 Property’s foreclosure. (Case No. A-15-724525-C; Case No. A-15-726907-J; Case No. A-16- 25 742267-C) (the “Quiet Title Action”)). 1 In Plaintiff’s most recent bankruptcy case, she filed for Chapter 11 Bankruptcy and 2 challenged the validity of Defendants’ interest in the Property. (FAC at 10–11). The 3 bankruptcy court entered an order in June 2023, (the “Claim Allowance Order”), finding that 4 Plaintiff had not presented sufficient evidence to overcome the presumptive validity of LTCP’s 5 claim, overruling Plaintiff’s objection to the validity of it, and allowing LTCP’s claim to 6 proceed. (See generally Claim Allowance Order, Ex. P to Req. Judicial Notice, ECF No. 14- 7 16). In November 2024, LTCP moved the bankruptcy court for relief from an automatic stay 8 that was in place so that it could enforce the Deed of Trust and foreclose on the Property. (See 9 Order re Stay, Ex. R to Req. Judicial Notice, ECF No. 14-18). 10 Plaintiff initiated this present matter in December 2024, challenging the validity of 11 Defendants’ interest in the Property. Although Plaintiff’s current bankruptcy proceeding 12 remains pending, the bankruptcy court granted LTCP’s motion for relief from the automatic 13 stay on January 31, 2025, finding that Plaintiff’s current bankruptcy had been filed as part of a 14 scheme to delay, hinder, and defraud LTCP and allowing LTCP to move forward with 15 foreclosure. (See id.). 16 Plaintiff alleges 20 claims against Defendants, seeks declaratory and injunctive relief, 17 and seeks damages. (See generally FAC). Defendants move to dismiss the FAC in its entirety. 18 (See generally Mot. Dismiss, ECF No. 25). 19 II. DISCUSSION

20 The Court takes up each pending Motion in turn, beginning with Plaintiff’s Motion to 21 Strike. 22 A. Plaintiff’s Motion to Strike 23 Plaintiff argues that certain filings should be stricken because Defendants failed to serve 24 her with their Motion to Dismiss, (ECF No. 25), Response to Amended Complaint, (ECF No. 25 26), Request for Judicial Notice, (ECF No. 28), and the Court’s Minute Order Regarding the 1 Requirements of Klingele v. Eikenberry and Rand v. Rowland,1 (ECF No. 29). (See generally 2 Mot. Strike, ECF No. 31). Plaintiff asserts that she only became aware of the filings by logging 3 on to PACER, the Court’s online docketing system. (Id. 4:22). 4 Pursuant to Rule 12(f), “[t]he court may strike from a pleading an insufficient defense or 5 any redundant, immaterial, impertinent or scandalous matter.” Fed. R. Civ. P. 12(f). Plaintiff 6 does not put forth any arguments for how the filings at issue meet the Rule 12(f) standard. 7 Instead, she relies on Rule 5(b), which in pertinent part states that service is proper by “mailing 8 [the paper] to the person’s last known address—in which event service is complete upon 9 mailing.” Fed. R. Civ. P. 5(b)(2)(C) (emphasis added). Plaintiff avers that she did not receive 10 the filings and therefore service was improper, which warrants striking the filings at issue.2 (See 11 generally Mot. Strike). 12 Defendants assert that they served the Motion to Dismiss, (ECF No. 25), Response to 13 Amended Complaint, (ECF No. 26), and Request for Judicial Notice, (ECF No. 28), via 14 certified mail to the address Plaintiff provided to this Court as her mailing address. (Resp. 2:12, 15 ECF No. 42); (see generally Flintz Decl., ECF No. 42-1). Plaintiff confirms that Defendants 16 mailed the filings to her, but they were initially returned “undelivered” and “unsigned.” (See 17 Reply 2:26–3:6, ECF No. 51). Importantly, service is complete upon mailing the papers 18 regardless of whether Plaintiff ultimately received them. See S. Cal. Darts Ass’n v. Zaffina, 762 19 F.3d 921, 928 (9th Cir. 2014) (explaining that service is not necessarily deficient “even if it is

20 assumed that, for some reason, the motion was not ultimately conveyed to” the intended 21 recipient). Thus, Defendants properly served Plaintiff via certified mail and her Motion to 22 Strike is DENIED. 23 24 1 Plaintiff mistakenly asserts that Defendants filed the Minute Order, (ECF No. 29). (See Mot. Strike 4:27). Only the Court can enter Minute Orders.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Throckmorton
98 U.S. 61 (Supreme Court, 1878)
Foman v. Davis
371 U.S. 178 (Supreme Court, 1962)
Montana v. United States
440 U.S. 147 (Supreme Court, 1979)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
John Desoto v. Yellow Freight Systems, Inc.
957 F.2d 655 (Ninth Circuit, 1992)
United States v. Kenneth P. Henderson
19 F.3d 917 (Fifth Circuit, 1994)
Western Radio Services Company, Inc. v. Glickman
123 F.3d 1189 (Ninth Circuit, 1997)
Marder v. Lopez
450 F.3d 445 (Ninth Circuit, 2006)
Gail Michelman v. Lincoln National Life Insuranc
685 F.3d 887 (Ninth Circuit, 2012)
United States v. Coast Wineries, Inc.
131 F.2d 643 (Ninth Circuit, 1942)

Cite This Page — Counsel Stack

Bluebook (online)
Hurst-Castl v. Long Term Capital Partnership VI, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hurst-castl-v-long-term-capital-partnership-vi-llc-nvd-2025.