Skylights LLC v. Byron et al

Filing 65

ORDER Granting 64 Stipulation Seeking a Final Judgment. IT IS HEREBY ORDERED that the Judgment issued on 6/24/15, 49 , be amended to reflect that it is a final judgment that resolves all claims and counterclaims in this case in favor of Fannie Mae and FHFA. Signed by Chief Judge Gloria M. Navarro on 11/23/15. (Copies have been distributed pursuant to the NEF - PS)

Case 2:15-cv-00043-GMN-VCF Document 64 Filed 11/09/15 Page 1 of 6

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Laurel I. Handley, Esq. (SBN 9576)
Krista J. Nielson, Esq. (SBN 10698)
ALDRIDGE PITE, LLP
520 South 4th Street, Suite 360
Las Vegas, Nevada 89101
Tel: [phone] Fax: [phone]
[e-mail]; [e-mail]
Attorneys for Defendants Federal National Mortgage Association;
CitiMortgage, Inc., and Clear Recon Corp.

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

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(Admitted Pro Hac Vice)
Asim Varma, Esq.
Howard N. Cayne, Esq.
Michael A.F. Johnson, Esq.
ARNOLD & PORTER LLP
601 Massachusetts Ave., NW
Washington, DC 20001-3743
Tel: [phone] Fax: [phone]
[e-mail]; [e-mail]; [e-mail]

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Attorneys for Intervenor Federal Housing Finance Agency
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UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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CASE NO. 2:15-cv-00043-GMN-VCF

SKYLIGHTS LLC,
vs.

Plaintiff,
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DAVID BYRON; et al.,

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Defendants.
and
FEDERAL HOUSING FINANCE AGENCY,
as Conservator for the Federal National
Mortgage Association,

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Intervenor.

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FENNEMORE CRAIG, P.C.
300 E. SECOND ST.
SUITE 1510
RENO, N EVADA 89501
[phone]

11027218.1

STIPULATION AND [PROPOSED]
ORDER SEEKING A FINAL JUDGMENT
PURSUANT TO RULE 54(B)

Case 2:15-cv-00043-GMN-VCF Document 64 Filed 11/09/15 Page 2 of 6

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FEDERAL NATIONAL MORTGAGE
ASSOCIATION,
Counterclaimant,
and
FEDERAL HOUSING FINANCE AGENCY,
as Conservator for the Federal National
Mortgage Association,
Intervenor,
vs.

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SKYLIGHTS LLC; THE FALLS AT
RHODES RANCH CONDOMINIUM
OWNERS ASSOCIATION, INC.,

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Counter-defendants.

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Plaintiff Skylights LLC, Defendant Federal National Mortgage Association (“Fannie
Mae”), Intervenor Federal Housing Finance Agency (“FHFA”), as Conservator for Fannie Mae,
and Counter-Defendant The Falls at Rhodes Ranch Condominium Owners Association, Inc.
(“HOA”), hereby jointly request that the Court amend the judgment to indicate it is final and
stipulate the following:
1.

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title against Fannie Mae. Dkt. No. 1-1.
2.

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In their responsive pleadings, Fannie Mae and FHFA each filed two substantively
identical counterclaims:

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a. A quiet title counterclaim against Plaintiff; and

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b. A declaratory judgment counterclaim against both Plaintiff and the HOA.

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On December 5, 2014, Plaintiff filed an action in state court asserting claims for quiet

Dkt. Nos. 6, 14.
3.

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The forms of relief associated with these two counterclaims were declarations that
a. 12 U.S.C. § 4617(j)(3) preempts a Nevada statute that could otherwise permit an

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HOA foreclosure sale to extinguish Fannie Mae and FHFA’s property interest;

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b. the HOA foreclosure sale at issue here did not extinguish Fannie Mae and

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FHFA’s interest in the Property; and

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FENNEMORE CRAIG, P.C.
300 E. SECOND ST.
SUITE 1510
RENO, N EVADA 89501
[phone]

See

11027218.1

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Case 2:15-cv-00043-GMN-VCF Document 64 Filed 11/09/15 Page 3 of 6

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c. the HOA foreclosure sale did not convey the subject property free and clear to

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Plaintiff. Id.
4.

There are no longer any parties remaining in the case other than Plaintiff, the HOA,

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FHFA, and Fannie Mae.

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CitiMortgage, Inc. on April 16, 2015. (Dkt. No. 34.) The Byrons were dismissed

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from the action on June 20, 2015. (Dkt. No. 47.) CCSF never appeared in the case.

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5.

The Court dismissed Plaintiff’s claims against

On April 16, 2015, FHFA and Fannie Mae filed a Joint Motion for Summary

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Judgment.

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discussed in both the quiet title and declaratory judgment counterclaims asserted by

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FHFA and Fannie Mae—a declaration that (1) 12 U.S.C. § 4617(j)(3) preempts any

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Nevada law that could permit an HOA foreclosure sale to extinguish a property

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interest of Fannie Mae while it is under FHFA’s conservatorship; and (2) the HOA

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Sale did not extinguish Fannie Mae’s interest in the Property, and thus Plaintiff took

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an interest in the Property subject to the Deed of Trust. See MSJ at 12-13. This

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requested relief was materially the same as requested in Fannie Mae and FHFA’s

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quiet title and declaratory relief counterclaims, providing for the opposite declaration

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as that requested by Plaintiff in its quiet title claims.

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6.

See Dkt. No. 26.

The summary judgment motion sought the relief

On June 24, 2015, this Court entered an Order granting the summary judgment

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motion of FHFA and Fannie Mae.

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GMN-VCF, 2015 WL 3887061 (D. Nev. June 24, 2015) (Dkt. No. 48). The Order

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held, among other things, that (1) “the HOA’s foreclosure sale … did not extinguish

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Fannie Mae’s interest in the Property secured by the Deed of Trust;” (2) “the HOA’s

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foreclosure sale … did not … convey the Property free and [clear] to Skylights; and

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(3) Plaintiff “purchased real property subject to FHFA’s lienhold interest.” Id. at *7

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n.4, 12.

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7.

Skylights LLC v. Byron, No. 2:15-CV-00043-

The Order denied the relief requested in Plaintiff’s quiet title claims, because it held
that the Deed of Trust was not extinguished. Indeed, the Order explicitly stated that

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FENNEMORE CRAIG, P.C.
300 E. SECOND ST.
SUITE 1510
RENO, N EVADA 89501
[phone]

11027218.1

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Case 2:15-cv-00043-GMN-VCF Document 64 Filed 11/09/15 Page 4 of 6

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summary judgment was granted to Fannie Mae and FHFA “on Skylights’s claims for

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quiet title.” Id. at *12. This Order was followed by a Judgment. (Dkt. No. 49.)

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On July 15, 2015, FHFA and Fannie Mae filed a Motion to Correct the Judgment,

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asking that the Judgment reflect the declaration in the Order, clarify that the Court

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resolved all outstanding claims and counterclaims, and confirm that it should be

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treated as a final and appealable judgment.

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FHFA and Fannie Mae argued that the Order resolved their quiet title counterclaims

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because the conclusion of the Order granted the relief requested in that counterclaim,

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i.e. a declaration that Plaintiff’s interest was purchased “subject to FHFA’s lienhold

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(Dkt No. 52.)

Among other things,

interest.” No party opposed the motion.
9.

On August 24, 2015, the Court partially granted FHFA and Fannie Mae’s Motion to

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Correct the Judgment, and ordered that the judgment contain the declaration

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requested in FHFA and Fannie Mae’s counterclaims for declaratory judgment. (Dkt.

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No. 58.) The Court did not grant the motion insofar as it requested that the judgment

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reflect that FHFA and Fannie Mae were granted summary judgment on their quiet

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title counterclaims. The Court ordered that FHFA and Fannie Mae file a status report

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regarding their quiet title counterclaim and whether discovery was warranted.

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10.

On September 4, 2015, FHFA and Fannie Mae filed the requested status report,

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expressing their view that no further discovery was necessary with regard to their

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quiet title counterclaims because the declaration articulated in the Court’s June 24,

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2015 Order already provided the relief requested in their quiet title counterclaims. No

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party filed an opposition to that report.

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11.

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On September 23, 2015, Plaintiff filed a Notice of Appeal of the Court’s June 24,
2015 Order. (Dkt. No. 60.)

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On September 25, 2015, the Clerk of Court for the Ninth Circuit ordered that Plaintiff

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show cause why the appeal should not be dismissed for lack of jurisdiction because

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the quiet title counterclaims had not yet been resolved. See Clerk Order, Skylights v.

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Byron, No. 15-16904 (9th Cir.) (Dkt. No. 2).

FENNEMORE CRAIG, P.C.
300 E. SECOND ST.
SUITE 1510
RENO, N EVADA 89501
[phone]

11027218.1

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Case 2:15-cv-00043-GMN-VCF Document 64 Filed 11/09/15 Page 5 of 6

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13.

On October 23, 2015, Plaintiff filed a response to the order to show cause. See

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Response, Skylights v. Byron, No. 15-16904 (9th Cir.) (Dkt. No. 4). In its response,

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Plaintiff argues, among other things, that the Court’s June 24, 2015 Order is

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effectively final because the relief requested in both of FHFA and Fannie Mae’s

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counterclaims was the same as that granted by this Court.
14.

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FHFA and Fannie Mae do not intend to oppose Plaintiff’s response to the Clerk’s

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Order but rather file a short explanation of the status of this case to the Clerk.

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The Parties respectfully request that the Court amend its Judgment to reflect that it is

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final and it resolves all claims and counterclaims in this case, including FHFA and

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Fannie Mae’s quiet title counterclaims.

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argument that the Court’s June 24, 2015 Order is already effectively final and

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appealable, any doubt that the Ninth Circuit lacks jurisdiction over Plaintiff’s appeal

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would be dispelled if this Court were to revise the Judgment.

Whether or not Plaintiff is correct in its

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Nothing in this stipulation is intended to indicate that Plaintiff or the HOA waive their

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right to appeal the Court’s judgment in favor of FHFA and Fannie Mae on any and all of the

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claims and counterclaims asserted in this case.
DATED this 9th day of November, 2015.

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ALDRIDGE PITE, LLP

FENNEMORE CRAIG, P.C.

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By:

By:

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/s/ Laurel I. Handley
Laurel I. Handley, Esq. (SBN 9576)
Krista J. Nielson, Esq. (SBN 10698)
520 South 4th Street, Suite 360
Las Vegas, Nevada 89101
Tel: [phone] Fax: [phone]
[e-mail];
[e-mail]

and
ARNOLD & PORTER LLP
(Admitted Pro Hac Vice)
Asim Varma, Esq.
Howard N. Cayne, Esq.
Michael A.F. Johnson, Esq.

Attorneys for Federal National Mortgage
Association; CitiMortgage, Inc., and Clear
Recon Corp.

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Attorneys for Intervenor Federal Housing
Financing Agency

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FENNEMORE CRAIG, P.C.
300 E. SECOND ST.
SUITE 1510
RENO, N EVADA 89501
[phone]

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

11027218.1

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Case 2:15-cv-00043-GMN-VCF Document 64 Filed 11/09/15 Page 6 of 6

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LIPSON, NEILSON,
GARIN, P.C.

LAW OFFICE OF MIKE BEEDE

COLE, SELTZER,

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By: /s/ Michael N. Beede____________
Michael N. Beede, Esq. (SBN 13068)
2300 W. Sahara Ave., Ste. 420
Las Vegas, NV 89102
Tel: [phone]
[e-mail]

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Attorney for Plaintiff Skylights LLC

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By:

/s/ Peter E. Dunkley
Peter E Dunkley, Esq. (SBN 11110)
9900 Covington Cross, Dr.
Las Vegas, NV 89144
Tel: [phone] - Fax: [phone]
[e-mail]

Attorneys for The Falls at Rhodes Ranch
Condominium Owners Association, Inc.

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[PROPOSED] ORDER

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Pursuant to the Stipulation above, and for good cause appearing therefor,
IT IS HEREBY ORDERED that the Judgment issued on June 24, 2015, (ECF No. 49),
be amended to reflect that it is a final judgment that resolves all claims and counterclaims in this
case in favor of Fannie Mae and FHFA.

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Dated this ______ day of November, 2015.

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_____________
UNITED STATES DISTRICT COURT JUDGE

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FENNEMORE CRAIG, P.C.
300 E. SECOND ST.
SUITE 1510
RENO, N EVADA 89501
[phone]

11027218.1

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