Van Damme v. National Default Servicing Corporation

CourtDistrict Court, D. Nevada
DecidedSeptember 2, 2025
Docket2:24-cv-02376
StatusUnknown

This text of Van Damme v. National Default Servicing Corporation (Van Damme v. National Default Servicing Corporation) 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
Van Damme v. National Default Servicing Corporation, (D. Nev. 2025).

Opinion

1 2 3 UNITED STATES DISTRICT COURT 4 DISTRICT OF NEVADA 5 * * *

6 ARMIN DIRK VAN DAMME, Case No. 2:24-cv-02376-RFB-EJY

7 Plaintiff, ORDER

8 v.

9 NATIONAL DEFAULT SERVICING COMPANY, et al., 10 Defendants. 11

12 13 Before the Court are an emergency motion to intervene by Wells Fargo Bank N.A., and 14 U.S. Bank N.A. (ECF No. 4), motions to remand by Plaintiff Armin Dirk Van Damme (ECF Nos. 15 8, 34, 51, 89), a motion to dismiss by Defendant National Default Servicing Company (ECF No. 16 22), and various other pending motions. For the following reasons the Court grants the intervention 17 of U.S. Bank and Wells Fargo (ECF No. 4), denies remand (ECF Nos. 8, 34, 51, 89), and grants 18 the motion to dismiss (ECF No. 22). The Court denies all other pending motions as moot. 19 I. FACTUAL AND PROCEDURAL BACKGROUND 20 The following factual background is based on the allegations in Plaintiff’s operative 21 Complaint, as well as judicially noticed matters of public record. The Court takes judicial notice 22 of the property records of 2775 Twin Palms Circle, Las Vegas, Nevada 89117 (the “Property”) 23 authenticated by the Clark County Recorder, as well as the docket and filings in other civil and 24 bankruptcy cases brought by Plaintiff as matters of public record not subject to reasonable dispute. 25 See Lee v. City of Los Angeles, 250 F.3d 668, 689 (9th Cir. 2001) (“[U]under Fed. R. Evid. 201, 26 a court may take judicial notice of ‘matters of public record.’”) (citing Mack v. South Bay Beer 27 Distrib., 798 F.2d 1279, 1282 (9th Cir. 1986)). 28 1 In 2003, Mr. Van Damme and Geraldine Van Damme purchased the Property from 2 Lysandra Abernathy. This purchase was recorded on January 6, 2004.1 The Van Damme’s secured 3 a loan of $740,000 with a promissory note (the “Note”) and first deed of trust (the “DOT”) on the 4 Property. These were recorded on October 5, 2004. At the outset, the DOT identified T.D. Service 5 Company as trustee and Mortgage Electronic Registration Systems, Inc., as the beneficiary. Based 6 on the record, the Court finds that U.S. Bank currently holds the Note and is the DOT beneficiary, 7 Defendant National Default Servicing Company (“NDSC”) is the DOT trustee, and Wells Fargo 8 is the loan servicer. 9 In 2007, Mr. Van Damme defaulted on the mortgage. In October 2007, NDSC recorded a 10 notice of default and election to sale. In 2008, NDSC rescinded that notice and later recorded 11 another notice of default and election to sale (“NOD”). On April 25, 2008, a loan modification 12 agreement between Wells Fargo and Mr. Van Damme was recorded. Subsequently, Mr. Van 13 Damme failed to make a payment under the modified loan agreement and NDSC recorded another 14 NOD. In 2009, Mr. Van Damme unsuccessfully attempted to halt the sale through Chapter 7 15 bankruptcy proceedings.2 16 In 2015, Mr. Van Damme filed a complaint against Wells Fargo and U.S. Bank alleging 17 defective documents were recorded against the Property and that they did not have the authority 18 to foreclose on the Property. Following removal, the Honorable Judge Gloria Navarro dismissed 19 the case with prejudice finding that the claims were barred by the applicable statutes of limitation 20 and lacked merit. See Van Damme v. JP Morgan Chase Bank, Inc. N.A., Case No. 2:15-cv-01951- 21 GMN-PAL (D. Nev. Mar. 26, 2018). 22 Following the final adjudication of the case before Judge Navarro, NDSC recorded their 23 NOD against the Property. Mr. Van Damme and NDSC then unsuccessfully participated in 24 foreclosure mediation. Subsequently, NDSC recorded a Notice of Trustee’s Sale and scheduled 25 the sale to take place on July 1, 2019. Prior to the sale, Mr. Van Damme filed a voluntary Chapter

26 1 The initial conveyance was recorded as from Abernathy to Mr. Van Damme only. 27 However, a conveyance from Mr. Van Damme to both Mr. Van Damme and Geraldine Van Damme was recorded on October 5, 2004. 28 2 See In re Van Damme, Case No. 09-41722 LT 7 2009 Bankr. LEXIS 3595. 1 13 bankruptcy petition in the District of Nevada.3 Wells Fargo and U.S. Bank filed a proof of claim 2 based on the unsatisfied mortgage which Mr. Van Damme objected to. Ultimately, the parties 3 stipulated to Mr. Van Damme’s withdrawal of his objection. 4 In May 2021, Mr. Van Damme filed an adversary proceeding in bankruptcy court alleging 5 inter alia that Wells Fargo engaged in fraud when entering the loan modification agreement.4 The 6 bankruptcy court held that Mr. Van Damme’s claims failed on their merits, were time-barred, and 7 were barred by issue and claim preclusion. The dismissal was affirmed on appeal to the Bankruptcy 8 Appellate Panel and Ninth Circuit Court of Appeals.5 9 In 2022, following their separation, Mr. Van Damme and Geraldine Van Damme conveyed 10 the Property to Geraldine Van Damme alone, which was recorded on August 22, 2022. On April 11 11, 2024, NDSC recorded another DOT. Following an unsuccessful foreclosure mediation, a 12 notice of trustee sale was recorded on December 23, 2024. 13 On June 24, 2024, Mr. Van Damme filed a complaint against U.S. Bank in Nevada state 14 court (“First 2024 Action”). On July 17, 2024, NDSC recorded a foreclosure mediation certificate. 15 Following removal, the Honorable Judge Jennifer Dorsey granted U.S. Bank’s dismissal of the 16 action with prejudice. The Court found that dismissal was appropriate because all of Mr. Van 17 Damme’s claims failed due to a combination of preclusion principles, time bars, or failure to state 18 a valid claim. See Armin Van Damme v. U.S. Bank N.A., Case No. 2:24-cv-01287-JAD-BNW 19 (D. Nev. Sep. 19, 2024). 20 On January 21, 2025, Mr. Van Damme filed a petition for Chapter 11 bankruptcy, and the 21 foreclosure sale was postponed. In re Armin Dirk Van Damme, Case No. BK-25-10329-MKN (D. 22 Nev.). The bankruptcy court found that Mr. Van Damme filed for bankruptcy in bad faith and 23 exercised the court’s discretion to bar any further bankruptcy filings submitted by Mr. Van Damme 24 for two years. Additionally, the bankruptcy court found that Mr. Van Damme had not held an

25 3 See In re Van Damme, Case No. 21-01067-mkn 651 B.R. 791 26 4 See In re Van Damme, Case No. 21-01067-mkn 651 B.R. 791 27 5 Ninth Circuit Bankruptcy Appellate Panel - In re Van Damme, BAP No. NV-22-1175- 28 GCB 2023 Bankr. LEXIS 993; Ninth Circuit Court of Appeals - In re Damme, Case No. 23-60023 2024 U.S. App. LEXIS 18040 1 interest in the Property since August 22, 2022. Accordingly, the court dismissed the case. Id. 2 In December 2024, Plaintiff began this action by suing Defendant NDSC in the Nevada 3 Eighth Judicial District Court seeking to prevent the foreclosure. ECF No. 1-1. On December 19, 4 2024, Defendant NDSC removed to this Court. ECF No. 1. On December 20, 2024, U.S. Bank and 5 Wells Fargo filed the instant emergency motion to intervene as defendants. ECF Nos. 4-6. On 6 December 22, 2024, Plaintiff filed his motion to remand. ECF No. 8. On January 10, 2025, 7 Defendant NDSC filed the instant motion to dismiss. ECF No. 22. Subsequently, the parties filed 8 various other pending motions. ECF Nos. 27, 29, 30, 34, 36, 39, 43, 45, 46, 49, 50, 51, 52, 57, 60, 9 63, 64, 67, 69, 70, 71, 72, 75, 78, 81, 82, 86, 89. 10 The Court’s Order follows. 11 II. MOTION TO INTERVENE 12 First, the Court addresses the pending emergency motion to intervene as defendants by the 13 putative Intervenor Defendants U.S. Bank and Wells Fargo Bank. For the following reasons the 14 Court grants the motion. 15 As a threshold matter, the Court considers whether the motion is, in fact, an emergency.

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