Ditech Financial LLC v. SFR Investments Pool 1, LLC et al

Filing 148

ORDER denying 112 Motion to Dismiss; ORDER denying 114 Motion for Summary Judgment; ORDER granting 147 Stipulation of Dismissal with prejudice as to Twilight Homeowners Association; Signed by Chief Judge Gloria M. Navarro on 4/2/2018. (Copies have been distributed pursuant to the NEF - JM)

Case 2:16-cv-00127-GMN-NJK Document 147 Filed 04/02/18 Page 1 of 5

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MICHAEL R. BROOKS, ESQ.
Nevada Bar No. 7287
SCOTT D. FLEMING, ESQ.
Nevada Bar No. 5638
KOLESAR & LEATHAM
400 South Rampart Boulevard, Suite 400
Las Vegas, Nevada 89145
Telephone: [phone]
Facsimile: [phone]
E-Mail: [e-mail]
[e-mail]
Attorneys for Plaintiff DITECH FINANCIAL
LLC and THE BANK OF NEW YORK
MELLON CORPORATION as Trustee for the
Certificateholders of the CWABS, Inc. Assetbacked Certificates Series 2005-17

400 S. Rampart Boulevard, Suite 400
Las Vegas, Nevada 89145
TEL: [phone] / FAX: [phone]

KOLESAR & LEATHAM

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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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CASE NO. 2:16-cv-00127-GMN-NJK

DITECH FINANCIAL LLC,
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Plaintiff,
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vs.
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SFR INVESTMENTS POOL I, LLC;
BOULDER RANCH MASTER
ASSOCIATION; TWILIGHT
HOMEOWNERS ASSOCIATION;
HOMEOWNERS ASSOCIATION SERVICES,
INC.; HARMESH SINGH; KULJIT KAUR;
DOES 1-20, Inclusive,

STIPULATION AND ORDER TO
DISMISS WITH PREJUDICE ALL
CLAIMS BY DITECH FINANCIAL,
LLC AGAINST TWILIGHT
HOMEOWNERS ASSOCIATION

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Defendants.
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SFR INVESTMENTS POOL 1, LLC,
Counterclaimant,

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vs.
DITECH FINANCIAL, LLC,
Counter-Defendant.

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2856350 (10190-2)

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Case 2:16-cv-00127-GMN-NJK Document 147 Filed 04/02/18 Page 2 of 5

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SFR INVESTMENTS POOL 1, LLC,

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Cross-Claimant,

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vs.
DITECH FINANCIAL LLC; BANK OF NEW
YORK MELLON, FKA THE BANK OF NEW
YORK as Trustee for the
CERTIFICATEHOLDERS CWABS, INC.,
ALTERNATIVE LOAN TRUST 2005-J12
ASSET-BACKED CERTIFICATES SERIES
2005-17; HOUSEHOLD FINANCE REALTY
CORPORATION OF NEVADA; HARMESH
SINGH, an individual; and KULJIT KAUR, an
individual,

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Cross-Defendants.

400 S. Rampart Boulevard, Suite 400
Las Vegas, Nevada 89145
TEL: [phone] / FAX: [phone]

KOLESAR & LEATHAM

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This Stipulation to Dismiss With Prejudice All Claims by Ditech Financial, LLC Against

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Twilight Homeowners Association (the “Stipulation”) is made by and among Plaintiff/Counter-

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Defendant/Cross-Defendant Ditech Financial, LLC (“Ditech”), Cross-Defendant The Bank of

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New York Mellon Corporation as Trustee for the Certificateholders of the CWABS, Inc. Asset-

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backed Certificates Series 2005-17 (“BONY Mellon” and with Ditech, “Lenders”), and

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Defendant Twilight Homeowners Association (“Twilight HOA”), and is based on the following

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facts:

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RECITALS
1.

On January 22, 2016, Ditech commenced this action by filing its Complaint for

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Declaratory Relief and Quite Title to Real Property [ECF No. 1] (the “Complaint”) naming as

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Defendants SFR Investments Pool 1, LLC (“SFR”), Boulder Ranch Master Association

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(“Boulder Ranch”), Twilight HOA, Homeowners Association Services, Inc. (“HAS”), Harmesh

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Singh (“Singh”) and Kuljit Kaur (“Kaur”).

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2.

In its Complaint, Ditech alleged, among other things, that as a result of a series of

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assignments, Ditech was the beneficiary of a certain deed of trust (the “Deed of Trust”) recorded

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in the Clark County Recorder’s Office, Clark County, Nevada, as Instrument No. 20051130-

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0005884, naming Countrywide Home Loans, Inc. (“Countrywide”) as the lender and Mortgage

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Electronic Registration Systems, Inc. (“MERS”) as the beneficiary.
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Case 2:16-cv-00127-GMN-NJK Document 147 Filed 04/02/18 Page 3 of 5

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3.

The Deed of Trust encumbers certain real property commonly described as 5929

Crumbling Ridge, Henderson, Nevada 89011 (“Property”).

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The Deed of Trust secures a promissory note (“Note”) signed by Harmesh Singh

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and Kuljit Kaur, husband and wife as joint tenants (“Borrowers”), on November 22, 2005, stating

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that Borrowers owe Countrywide $276,250.00 plus interest.

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5.

The Property is located in a common-interest community in which Boulder Ranch

is the master association and Twilight HOA is a sub-association.

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6.

On or about July 7, 2009, HAS, acting as collection agent for Boulder Ranch

400 S. Rampart Boulevard, Suite 400
Las Vegas, Nevada 89145
TEL: [phone] / FAX: [phone]

HOA, recorded a Notice of Claim of Lien-Homeowner Assessment (the “Boulder Ranch Lien”)

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KOLESAR & LEATHAM

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against the Property in the Clark County Recorder’s Office, Clark County, Nevada, as Instrument

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No. 200907070001893.

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7.

On or about October 21, 2009, HAS, acting as collection agent for Boulder

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Ranch, recorded a Notice of Default and Election to Sell in the Clark County Recorder’s Office,

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Clark County, Nevada, as Instrument No. 200910210001899.

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8.

On or about July 24, 2012, HAS, acting as collection agent for Twilight HOA,

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recorded a Notice of Claim of Lien-Homeowner Assessment (the "Twilight Lien") against the

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Property in the Clark County Recorder’s Office, Clark County, Nevada, as Instrument No.

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201207240001224.

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9.

On or about February 24, 2014, HAS, acting as collection agent for Boulder

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Ranch, recorded a Notice of Sale in the Clark County Recorder’s Office, Clark County, Nevada,

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as Instrument No. 201402240001318, scheduling a foreclosure sale of the Property to occur on

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March 13, 2014.

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10.

On July 10, 2014, HAS, as designated agent of Boulder Ranch HOA, executed a

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certain Foreclosure Deed Upon Sale (the “Foreclosure Deed”) conveying an interest in the

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Property, without covenant, or warranty, to SFR. The Foreclosure Deed was recorded on August

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14, 2014 as Instrument No. 201408140001068.

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/ / /

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/ / /
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Case 2:16-cv-00127-GMN-NJK Document 147 Filed 04/02/18 Page 4 of 5

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The Foreclosure Deed recites that a sale occurred on July 10, 2014 and that the

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grantee, SFR, acquired the Property “for $21,000 cash, lawful money of the United States, in full

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satisfaction of the indebtedness secured by Grantor’s lien.”

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12.

A portion of the proceeds from the sale of the Property to SFR may have been

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used to satisfy the amounts due under the Twilight Lien; however, to the extent Twilight HOA

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may be entitled to any portion of the proceeds from the sale of the Property to SFR, the HOA

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waives all such entitlement.

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13.

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In its Complaint, Ditech asserted the following claims for relief:
a. Declaratory Relief against all Defendants. Ditech sought, among other things,
a declaration regarding the “parties’ respective interests in the Property.”

400 S. Rampart Boulevard, Suite 400
Las Vegas, Nevada 89145
TEL: [phone] / FAX: [phone]

KOLESAR & LEATHAM

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b. Quiet Title against SFR and Twilight HOA.

Ditech sought “judgment

quieting title to the Property in the Plaintiff’s favor.”

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c. Accounting against Boulder Ranch, Twilight HOA and HAS. Ditech sought

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“an accounting of the disposition of all sums received from the sale of the

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Property.”

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14.

Twilight HOA acknowledges and agrees that as a result of the non-judicial

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foreclosure by Boulder Ranch, all of its interests in the Property regarding the Twilight Lien

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were extinguished and that as of the date of this Stipulation, Twilight HOA disclaims any interest

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in the Property other than its ongoing rights under Nevada law, including NRS 116, and the

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governing documents, including the Covenants, Conditions and Restrictions (“CC&Rs”).

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15.

Lenders and Twilight HOA have agreed, in light of Twilight HOA’s

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acknowledgment that it holds no further interest in the Property, to dismiss all claims against one

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another, with prejudice.

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STIPULATION AND AGREEMENT
Based on the foregoing Recitals, Lenders and Twilight HOA (the “Parties”) stipulate and

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agree as follows:

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A.

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The Parties jointly request entry by this Court of an order dismissing this action

with prejudice as set forth below.
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Case 2:16-cv-00127-GMN-NJK Document 147 Filed 04/02/18 Page 5 of 5

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B.

The Parties shall each bear their own attorneys’ fees and costs.

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C.

The dismissal of Twilight HOA as a party shall not affect the rights or arguments

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that may be presented by the remaining Parties during any trial in this matter, all of which are

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expressly reserved.

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D.

Depositions of Twilight HOA’s employees, officers and agents may be used at the

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time of trial pursuant to Fed. R. Civ. P. 32 even though Twilight HOA is hereby dismissed as an

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“adverse party.”

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Dated: April 2, 2018

Dated: April 2, 2018

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KOLESAR & LEATHAM

LIPSON, NEILSON, COLE, SELTZER &
GARIN, P.C.

400 S. Rampart Boulevard, Suite 400
Las Vegas, Nevada 89145
TEL: [phone] / FAX: [phone]

KOLESAR & LEATHAM

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/s/ Scott D. Fleming, Esq.
MICHAEL R. BROOKS, ESQ.
Nevada Bar No. 7287
SCOTT D. FLEMING, ESQ.
Nevada Bar No. 5638
400 South Rampart Boulevard, Suite 400
Las Vegas, Nevada 89145

/s/ Amber M. Williams, Esq.
JOSEPH P. GARIN, ESQ.
Nevada Bar No. 6653
J. WILLIAM EBERT, ESQ.
Nevada Bar No. 2697
AMBER M. WILLIAMS, ESQ.
Nevada Bar No. 12301
9900 Covington Cross Drive, Suite 120
Attorneys for Plaintiff DITECH FINANCIAL Las Vegas, NV 89144
LLC and THE BANK OF NEW YORK
MELLON CORPORATION as Trustee for the Attorneys for Defendant
Certificateholders of the CWABS, Inc. Asset- Twilight Homeowners Association
backed Certificates Series 2005-17

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ORDER
Based on the parties’ stipulation and good cause appearing, IT IS HEREBY
ORDERED that Defendant Twilight Homeowners Association is DISMISSED with prejudice.
IT IS FURTHER ORDERED that Defendant Twilight Homeowners Association's
Motions, (ECF Nos. 112, 114), are DENIED as moot.

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Dated this ____ day of April, 2018.

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2856350 (10190-2)

______________________________________
Gloria M. Navarro, Chief Judge
UNITED STATES DISTRICT JUDGE
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