LN Management, LLC Series 5664 Divot v. Dansker et al

Filing 35

ORDER Granting 33 Stipulation to Entry of Order and Proposed Order Permitting The Federal National Mortgage Association and Federal Housing Finance Agency, as Conservator of the Federal National Mortgage Association, to Intervene. Signed by Judge Robert C. Jones on 5/14/15. (Copies have been distributed pursuant to the NEF - TR)

Case 2:13-cv-01420-RCJ-GWF Document 33 Filed 05/01/15 Page 1 of 4

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Abran E. Vigil (SBN 7548)
Sylvia O. Semper (SBN 12863)
BALLARD SPAHR LLP
100 North City Parkway, Suite 1750
Las Vegas, Nevada 89106
Tel: [phone] Fax: [phone]
[e-mail]; [e-mail]
Attorneys for Proposed Intervenor Federal National Mortgage Association
Leslie Bryan Hart, Esq. (SBN 4932)
John D. Tennert, Esq. (SBN 11728)
FENNEMORE CRAIG
300 S. Second St., Suite 1510
Reno, Nevada 89501
Tel: [phone] Fax: [phone]
[e-mail]; [e-mail]
Asim Varma, Esq.*
[e-mail]
Howard N. Cayne, Esq.*
[e-mail]
Michael A.F. Johnson, Esq. *
[e-mail]
ARNOLD & PORTER LLP
555 12th Street NW
Washington, DC 20004
Tel: [phone] Fax: [phone]
*pro hac vice petitions to be submitted
Attorneys for Proposed Intervenor Federal Housing Finance Agency
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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LN MANAGEMENT, LLC SERIES 5664
DIVOT

CASE NO. 2:13-cv-01420-RCJ-GWF
STIPULATION TO ENTRY OF ORDER
AND PROPOSED ORDER PERMITTING
THE FEDERAL NATIONAL
MORTGAGE ASSOCIATION AND
FEDERAL HOUSING FINANCE
AGENCY, AS CONSERVATOR OF THE
FEDERAL NATIONAL MORTGAGE
ASSOCIATION, TO INTERVENE

Plaintiff,

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v.

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KIT DANSKER and JPMORGAN CHASE
BANK, N.A.,

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Defendants.

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1.

The Federal National Mortgage Association (“Fannie Mae”) and the Federal

Housing Finance Agency (“FHFA” or “Conservator”), as Conservator for Fannie Mae (together,
“Petitioners”), seek to intervene in the above-captioned action pursuant to Fed. R. Civ. P. 24(b) and
12 U.S.C. § 4617(b)(2)(A)(i).

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Case 2:13-cv-01420-RCJ-GWF Document 33 Filed 05/01/15 Page 2 of 4

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Permissive Intervention
2.

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Fed. R. Civ. P. 24(b) enables this Court to permit anyone to intervene who “has a

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claim or defense that shares with the main action a common question of law or fact.” Fed. R. Civ.

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P. 24(b)(1)(B).
3.

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Because Fannie Mae avers ownership of a mortgage loan on the Property at issue in

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this action, Fannie Mae has a claimed property interest that Plaintiff seeks to extinguish by this

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action.

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4.

FHFA has a direct interest in protecting Fannie Mae’s claimed rights to property. On

September 6, 2008, FHFA’s Director appointed the FHFA Conservator of Fannie Mae and the

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Federal Home Loan Mortgage Corporation in accordance with the Housing and Economic

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Recovery Act of 2008, Pub. L. 110-289, 122 Stat. 2654 (codified at 12 U.S.C.§ 4617) (“HERA”),

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and the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. §

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4501, et. seq.). As Conservator, FHFA has succeeded to “all rights, titles, powers, and privileges”

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of Fannie Mae. See 12 U.S.C. § 4617(b)(2)(A)(i). Moreover, FHFA is charged with taking

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necessary steps to “preserve and conserve the assets and property of [the Enterprises]” and “take

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over the assets of and operate [the Enterprises] with all the powers of the shareholders, the directors,

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and the officers of [the Enterprises].” Id. at §§ 4617(b)(2)(B)(i), (D)(ii). Thus, FHFA has a

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substantial interest in Plaintiff’s action seeking to quiet title and declare extinguished a purported

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property interest that Fannie Mae claims to hold. See 12 U.S.C. §§ 4617(b)(2)(B)(i),

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4617(b)(2)(B)(iv).

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5.

The Petitioners seek to protect Fannie Mae’s property interest and present the

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statutory defense that Plaintiff’s claim of free and clear title to the property at issue in this case (the

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“Property”) is barred by 12 U.S.C. § 4617(j)(3), which Petitioners contend preempts conflicting

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state law and precludes a homeowner’s association sale from extinguishing Fannie Mae’s interest in

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the Property. This statutory defense shares a common question of law or fact with the main action,

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and is articulated in the Answers Petitioners have filed herewith. Accordingly, permissive

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intervention under Rule 24(b) is warranted.

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Case 2:13-cv-01420-RCJ-GWF Document 33 Filed 05/01/15 Page 3 of 4

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Intervention of Right
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In the alternative, FHFA asserts that it has an unconditional federal statutory right to

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intervene in this matter, see Fed. R. Civ. P. 24(a)(1), and to assert its interests in a manner

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consistent with the Conservator’s powers and duties.

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7.

Pursuant to HERA, FHFA asserts that it has unqualified authority to protect Fannie

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Mae’s assets and property. See 12 U.S.C. § 4617(b)(2)(A)(i); 12 U.S.C. § 4617(b)(2)(D)(i)-(ii).

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Because Fannie Mae claims an interest in the Property at issue here, the Conservator has authority

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to intervene to protect that claimed interest.

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Accordingly, FHFA asserts it has an unconditional federal statutory right to

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intervene in this matter, see Fed. R. Civ. P. 24(a)(1), and to assert its interests in a manner

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consistent with the Conservator’s powers and duties.

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9.

Plaintiff and Defendant JPMorgan Chase Bank, N.A., consent to this motion to

intervene. The remaining named defendants have not appeared in this action.

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10.

Pursuant to Fed. R. Civ. P. 24(c), Petitioners attach as Exhibits A and B their

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intended Answers.
STIPULATION

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Proposed Intervenors Fannie Mae and FHFA, Plaintiff LN Management LLC Series 5664

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Divot, and Defendant JPMorgan Chase Bank, N.A., through their attorneys of record, hereby

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stipulate and request that the Court make this stipulation an order of the Court:

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Fannie Mae and FHFA shall be permitted to intervene in the above-referenced action
pursuant to 12 U.S.C. § 4617(b)(2)(A)(i) and Fed. R. Civ. P. 24.

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DATED this 1st day of May, 2015.
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Case 2:13-cv-01420-RCJ-GWF Document 33 Filed 05/01/15 Page 4 of 4

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By: /s/ Kerry P. Faughnan
Kerry P. Faughnan, Esq. (SBN 12204)
P.O. Box 335361
North Las Vegas, Nevada 89033
Tel: [phone]
[e-mail]
Attorney for Plaintiff LN Management Series
5664 Divot

By: /s/ Leslie Bryan Hart
Leslie Bryan Hart, Esq. (SBN 4932)
John D. Tennert, Esq. (SBN 11728)
FENNEMORE CRAIG
300 S. Second St., Suite 1510
Reno, Nevada 89501
Tel: [phone] Fax: [phone]
[e-mail]; [e-mail]

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and
By: /s/ Abran E. Vigil
Abran E. Vigil, Esq. (SBN 7548)
Matthew David Lamb, Esq. (SBN 12991)
Sylvia O. Semper, Esq. (SBN 12863)
BALLARD SPAHR LLP
100 City Parkway , Suite 1750
Las Vegas, NV 89106
Tel: [phone] Fax: [phone]
[e-mail];
[e-mail];
[e-mail]

By: /s/ Asim Varma
Asim Varma, Esq.*
[e-mail]
Howard N. Cayne, Esq.*
[e-mail]
Michael A.F. Johnson, Esq.*
[e-mail]
ARNOLD & PORTER LLP
555 12th Street NW
Washington, DC 20004
Tel: [phone] Fax: [phone]
Attorneys for Federal Housing Financing
Agency

Attorneys for Defendant JPMorgan Chase,
N.A. and Proposed Intervenor Federal
National Mortgage Association

* pro hac vice petitions to be submitted

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ORDER
IT IS SO ORDERED.

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Dated this 14th day of May, 2015.
DATED this ____ day of May, 2015.

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__________________________________
UNITED STATES DISTRICT JUDGE

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