Tracy Lee Hurst-Castl v. Sables, LLC

District Court, D. Nevada·Decided December 2, 2025·No. 2:25-cv-00752·Unknown

Opinion

1 UNITED STATES DISTRICT COURT 2 DISTRICT OF NEVADA 3 TRACY LEE HURST-CASTL, Case No.: 2:25-cv-00752-APG-NJK

4 Plaintiff Order Declaring Plaintiff Tracy Lee Hurst- Castl a Vexatious Litigant 5 v. [ECF No. 39] 6 SABLES, LLC,

7 Defendant

8 Sables, LLC moves for an order declaring Tracy Lee Hurst-Castl a vexatious litigant. 9 ECF No. 39. Based on Hurst-Castl’s history of filing frivolous legal actions and papers, I grant 10 the motion. 11 I. BACKGROUND 12 A. The Loan and Default 13 On June 1, 2007, Hurst-Castl entered into a promissory note (Note) with Washington 14 Mutual Bank (WaMu) for the principal amount of $2,250,000. The Note was secured by a deed 15 of trust (the Deed of Trust, and collectively with the Note, the Loan) on Hurst-Castl’s real 16 property located at 3910 White Fir Way, Mt. Charleston, Nevada (the Property). ECF No. 1-1 at 17 32. Hurst-Castl defaulted on the Loan in 2008 and has not made any payments on the Note 18 since then. 19 B. First Three Bankruptcies and Adversary Proceeding 20 On June 8, 2010, Hurst-Castl filed the first bankruptcy case that affected the Property 21 (Case No. 10-20635-bam, Bankr. Dist. Nev.). That case was dismissed on August 6, 2010 after 22 Hurst-Castl failed to file any schedules or statements. See Case No. 10-20635-bam, ECF No. 23. 23 On September 24, 2010, Hurst-Castl filed her second bankruptcy (Case No. 10-28140-bam, 1 Bankr. Dist. Nev.). While that bankruptcy was pending, on June 24, 2011, Hurst-Castl filed an 2 adversary proceeding (Case No. 11-01166-bam, Bankr. Dist. Nev.) against JPMorgan Chase 3 Bank and California Reconveyance Company (the then beneficiary and trustee, respectively, of 4 the Deed of Trust)1 and other defendants on other loans secured by other properties. She

5 asserted claims for wrongful foreclosure, conspiracy to defraud, offering false instruments for 6 record, quiet title, and determination of creditor status based on an allegation that the Loan was 7 improperly securitized and thus the defendants were not the true beneficiaries or real parties in 8 interest. ECF No. 40-1. Hurst-Castl failed to serve any of the defendants, and the case was 9 voluntarily dismissed on November 9, 2011. See Case No. 11-01166-bam, ECF No. 9. Hurst- 10 Castl’s second bankruptcy was dismissed on September 14, 2012 after she failed to timely file 11 required reports and to confirm a Chapter 11 plan of reorganization. See Case No. 10-28140- 12 bam, ECF No. 220. Approximately three months later, on December 21, 2012, Hurst-Castl filed 13 a third bankruptcy (Case No. 12-23874-btb, Bankr. Dist. Nev.). That case was dismissed on 14 May 6, 2014, after Hurst-Castl failed to comply with the bankruptcy court’s orders. See Case

15 No. 12-23874-btb, ECF No. 241. 16 C. Foreclosure Mediation 17 On June 10, 2015, PennyMac Mortgage Investment Trust Holdings I, LLC (then holder 18 of the Loan) began nonjudicial foreclosure proceedings on the Property by recording a Notice of 19 Default and Election to Sell. Hurst-Castl elected to participate in the Nevada Foreclosure 20 Mediation Program. The parties were unable to agree to a loan modification, and the mediator 21 22

23 1 The Note and Deed of Trust went through a series of assignments between 2008 and 2022, all of which are reflected in recorded documents of which this court may take judicial notice. ECF Nos. 16-5 through 16-10. 1 found that PennyMac had complied with all the program’s requirements and could proceed with 2 foreclosure. ECF No. 40-3 at 2. 3 D. First State Court Quiet Title Action 4 On September 14, 2015, Hurst-Castl filed a quiet title complaint against WaMu in

5 Nevada state court (Case No. A-15-724525-C, Eighth Jud. Dist. Ct.). Her primary claim was 6 that WaMu was not in possession of her Note when WaMu was put into receivership, so any 7 subsequent transfer of the Loan was invalid. ECF No. 40-4 at 4-5. Hurst-Castl failed to serve 8 WaMu, and she voluntarily dismissed the action on August 23, 2016. 9 E. Petition for Judicial Review of Foreclosure Mediation 10 On October 29, 2015, Hurst-Castl filed a Nevada state court petition for judicial review 11 of the ill-fated foreclosure mediation, in which she alleged that PennyMac did not engage in 12 good faith (Case No. A-15-726907-J, Eighth Jud. Dist. Ct.). On July 18, 2016, the state district 13 court denied Hurst-Castl’s petition and held that PennyMac had complied with all document 14 production requirements and established its authority to foreclose. ECF No. 40-3 at 5. Hurst-

15 Castl appealed the ruling to the Nevada Court of Appeals (Case No. 71082-COA). 16 F. Second State Court Quiet Title Action 17 While that appeal was pending, on August 26, 2016 Hurst-Castl filed a lawsuit against 18 PennyMac in Nevada state court, asserting claims for trespass, quiet title, and declaratory and 19 injunctive relief (Case No. A-16-742267-C, Eighth Jud. Dist. Ct.). She alleged that her 20 signature on the Note produced by PennyMac was forged and that the statute of limitations 21 barred PennyMac from foreclosing on the Property. ECF No. 40-5. PennyMac moved to 22 dismiss, which the state district court granted on November 18, 2016. ECF No. 40-6 at 5:10-11. 23 Hurst-Castl appealed that order to the Nevada Court of Appeals (Case No. 71990-COA), which 1 was consolidated with her earlier appeal of the denial of her petition for judicial review (Case 2 No. 71082-COA). 3 On May 9, 2018, the Nevada Court of Appeals affirmed the district court’s denial of 4 Hurst-Castl’s petition for judicial review, thus affirming that PennyMac was the valid

5 beneficiary and assignee of the Note and Deed of Trust, that PennyMac complied with all 6 Foreclosure Mediation Program requirements, and that PennyMac could properly proceed with 7 foreclosure. ECF No. 40-7 at 6. As for the quiet title action, the court of appeals held that no 8 statute of limitations prevented PennyMac from pursuing a nonjudicial foreclosure, but it 9 remanded the remaining claims, as it found the district court had improperly relied on res 10 judicata as the basis for their dismissal. Id. at 6-9. 11 Following remand, the state district court conducted a trial on Hurst-Castl’s claims and 12 entered its findings of fact, conclusions of law, and judgment on December 4, 2020. The court 13 reiterated that the “Court of Appeals found that PennyMac has the beneficial interest under the 14 Loan and the legal authority to foreclose on the Property.” ECF No. 40-6 at 5:17-18. The court

15 also found that Hurst-Castl “has initiated numerous legal actions in an attempt to avoid repaying 16 the Loan after she defaulted on the Loan in 2008.” Id. at 9:7-10. As to Hurst-Castl’s forgery 17 allegation, the court held: 18 Given the overwhelming evidence, including Plaintiff’s admissions that: (1) Plaintiff received the proceeds from the Loan; (2) Plaintiff used the proceeds 19 from the Loan to pay off $1,538,610.00 of her pre-existing debt on the Property; (3) Plaintiff received $636,443.65 in cash from the Loan; (4) Plaintiff’s 20 inconsistent positions taken in prior judicial proceedings; and (5) the Court’s own observation of the signatures, this Court finds Plaintiff’s assertion that a 21 single signature on the Note was forged is not credible and that Plaintiff failed to overcome the statutory presumption [of validity] at trial. 22

23 Id. at 11:21-27 (correcting typographical error in original). 1 G. Appeal to the Supreme Court of Nevada 2 Hurst-Castl appealed the district court’s order to the Supreme Court of Nevada (Case 3 No. 82296) on December 31, 2020. Over the course of 15 months, Hurst-Castl obtained eight 4 extensions of time to file her opening brief, but failed to file it. ECF No. 40-8 at 7. Ultimately,

5 on May 13, 2022, the court dismissed the appeal, explaining that it could not allow Hurst-Castl 6 to “indefinitely delay the briefing of this appeal.” Id. 7 H.

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