Las Vegas Development Group, LLC v. 2014-3 IH Equity Owner, LP

District Court, D. Nevada·Decided December 7, 2022·No. 2:15-cv-00917·Unknown

Opinion

Nevada Bar No. 4613 2 dgerrard@gerrard-cox.com ZAHAVA M. LIEBERMAN, ESQ. 3 Nevada Bar No. 15953 zlieberman@gerrard-cox.com 2450 St. Rose Parkway, Suite 200 5 Las Vegas, Nevada 89074 Telephone: (702) 796-4000 6 Attorneys for Defendants 2014-1 IH Equity Owner, LP 7 THR Nevada II, LP, THR Property Borrower, LP THR Property Guarantor, LP 8 THR Property Holdco, LP 2014-1 IH Property Holdco, LP 9 UNITED STATES DISTRICT COURT

11 LAS VEGAS DEVELOPMENT GROUP, LLC, Case No.: 2:15-cv-00917-GMN-NJK a Nevada limited liability company, 12

Plaintiff, JOINT PRETRIAL ORDER 13

vs. 14

2014-3 IH EQUITY OWNER, LP, a Delaware 15 limited partnership; BANK OF AMERICA, NA, a National Banking Association; MERIDIAN 16 FORECLOSURE SERVICE, a California corporation; THR NEVADA II, LP a Delaware 17 limited partnership; THR PROPERTY BORROWER, LP, a Delaware limited partnership; 18 THR PROPERTY GUARANTOR, LP, a Delaware limited partnership; THR PROPERTY HOLDCO, 19 LP, a Delaware limited partnership; 2014-3 IH PROPERTY HOLDCO, LP, a Delaware limited 20 partnership; 2014-3 IH BORROWER, LP, a Delaware limited partnership; GERMAN 21 AMERICAN CAPITAL CORPORATION, a Maryland corporation; CHRISTIANA TRUST, an 22 unknown business entity; DOE individuals I through XX; and ROE CORPORATIONS I through XX, 23

Defendants. 24

26 Plaintiff Las Vegas Development Group, LLC (“LVDG”) and Defendants THR Nevada II, 27 LP (“THR2”), 2014-3 IH Borrower, 2014-13 IH Equity Owner, LP, THR Property Borrower, LP, 28 1 2 THR and IH entities collectively, “THR Entities”) submit the following proposed joint pretrial order. 3 Following pretrial proceedings in this case, IT IS ORDERED: 4 I. Nature of the action: 5 This is a quiet title and declaratory relief matter following two foreclosure sales involving real 6 property located at 7832 Marksville St, Las Vegas, NV 89149 (“Property”). LVDG purchased the 7 Property at a HOA lien foreclosure sale conducted pursuant to NRS 116 (“116 Sale”), and THR2 8 subsequently purchased the Property at a deed of trust foreclosure sale conducted pursuant to NRS 9 10 107 (“107 Sale”). LVDG seeks a declaration that all subordinate liens were extinguished at the time 11 of the 116 Sale; that it acquired title to the Property free and clear of the Deed of Trust that was the 12 subject of the 107 Sale; and that the 107 Sale is void because it was based upon an extinguished 13 security interest. THR2 seeks a declaration that the 116 Sale was void or if not void was subject to the 14 Deed of Trust, and that THR2 acquired title to the Property at the 107 Sale free and clear of LVDG’s 15 claimed interest. 16 17 The Court entered an order denying summary judgment on March 25, 2020, finding an issue 18 of fact existed for trial related to whether prejudice was suffered as a result of notice not being 19 provided in the manner required by NRS 116. [ECF No. 115]. The Court found Cascade Homeowners 20 Association (“Cascade HOA”), through Absolute Collection Services (“ACS”), failed to 21 substantially comply with Nevada's statutory notice requirements since the evidence indicated that it 22 did not mail the notice of default or notice of sale to MERS. [ECF No. 115 at 5]. However, the Court 23 concluded that the evidence presented did not demonstrate whether MERS was prejudiced by Cascade 24 25 HOA’s and ACS’ failure to substantially comply with Nevada’s statutory notice requirements. [ECF 26 No. 115 at 6]. The Court did not address, among other things, whether the 116 Sale should be set aside 27 on equitable grounds or whether LVDG is a bona fide purchaser for value. 28 1 2 II. Statement of jurisdiction: 3 This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332. The diversity of 4 citizenship requirement is met. LVDG is a citizen of Nevada and California. THR Entities are neither 5 Nevada nor California citizens. The amount in controversy requirement is also met. The amount in 6 controversy exceeds $75,000.00. The THR Entities are citizens of the State of Delaware. The amount 7 in controversy requirement is also met because the property's value exceeds $75,000.00. 8 III. The following facts are admitted by the parties and require no proof: 9 10 1. Nevada adopted Uniform Common Interest Ownership Act as NRS 116, including 11 NRS 116.3116(2), in 1991. 12 2. On or about July 22, 2005, Arnold Dumlao Dilag and Jocelyn Dilag (“Borrowers”) 13 purchased a property located at 7832 Marksville St, Las Vegas, NV 89149 as reflected in a Grant, 14 Bargain, Sale Deed recorded on July 29, 2005 in the Official Records of Clark County, Nevada, as 15 Instrument No. 20050729-0004278. 16 17 3. The Property is located within the Cascade HOA and is subject to the Cascade HOA’s 18 Declaration of Conditions, Covenants, & Restrictions (“CC&Rs”), which were recorded on August 19 18, 2003 in the Official Records of Clark County, Nevada, as Instrument No. 20030818-01114. 20 4. On or about December 4, 2006, the Borrowers refinanced the Property with a $280,000 21 loan from Casa Blanca Mortgage, Inc. (the “Loan”). 22 5. The Borrowers secured the Loan with a deed of trust against the Property, recorded on 23 January 5, 2007, in the Official Records of Clark County, Nevada, as Instrument No. 20070105- 24 25 0001709 (“2006 DOT”). The 2006 DOT identified Casa Blanca Mortgage as the original Lender, 26 Mortgage Electronic Registration Systems, Inc. (“MERS”) as the Beneficiary, and Financial Title 27 Company as the Trustee. 28 1 2 Property in the Official Records of Clark County, Nevada, as Instrument No. 20070105-0001709 3 (“Second DOT”). The Second DOT is not at issue in this case. 4 7. On or about November 27, 2007, Casa Blanca Mortgage assigned the Second DOT to 5 IndyMac Bank through that certain Corporation Assignment of Deed of Trust recorded on December 6 4, 2007 in the Official Records of Clark County, Nevada, as Instrument No. 20071204-0002957. 7 8. On August 6, 2010, Cascade HOA, through its agent Absolute Collection Services 8 (“ACS”), recorded a Notice of Delinquent Assessment Lien in the Official Records of Clark County, 9 10 Nevada, as Instrument No. 201008-60000298. 11 9. On October 15, 2010, Cascade HOA, through its agent ACS, recorded a Notice of 12 Default and Election to Sell Under Homeowners’ Association Lien in the Official Records of Clark 13 County, Nevada, as Instrument No. 20101015-0003056 (“NOD”). 14 10. Cascade HOA, through ACS, did not mail the NOD to MERS, the Beneficiary under 15 the 2006 DOT, but instead mailed the NOD to Casa Blanca Mortgage, as well as IndyMac Bank, 16 17 among others. 18 11. On January 21, 2011, Cascade HOA through ACS, recorded a Notice of Trustee's Sale 19 in the Official Records of Clark County, Nevada, as Instrument No. 20110121-0003842 (“NOS”). 20 12. Cascade HOA, through ACS, did not mail the NOS to MERS, the Beneficiary under 21 the 2006 DOT, but instead mailed the NOS to Casa Blanca Mortgage, as well as IndyMac Bank, 22 among others. 23 13. On June 7, 2011, Cascade HOA sold the property at its foreclosure sale (“116 Sale”) 24 25 to LVDG for $4,500.00, as reflected in the Trustee’s Deed Upon Sale recorded on June 8, 2011 in the 26 Official Records of Clark County, Nevada, as Instrument No. 20110608-0000856 (“116 Foreclosure 27 Deed”).

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