Nationstar Mortgage LLC v. Shenandoah Owners Association, Inc. et al

Filing 11

ORDER DENYING SFR's 10 Motion for Demand for Security of Costs. Signed by Judge Jennifer A. Dorsey on 3/3/16. (Copies have been distributed pursuant to the NEF - PS)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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Nationstar Mortgage, LLC,

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2:16-cv-00268-JAD-NJK

Plaintiff

Order Denying Motion for Order
Directing Plaintiff to Post Cost Bond

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v.

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Shenandoah Owners Association, Inc., et al.,

[ECF 10]
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Defendants

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Nationstar Mortgage, LLC brings this action to avoid the effects of a 2012 HOA non-

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judicial foreclosure sale of one of the properties in its mortgage portfolio. The purchaser of that

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property at the foreclosure sale, defendant SFR Investment Pool 1, LLC, cites NRS 18.130(1)

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and moves this court for an order directing Nationstar to “post a $500 cost bond within 30 days”

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and staying these proceedings until that bond is posted.1 I deny the motion because the stay in

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NRS 18.130(1) is self executing and because it does not appear that SFR has properly invoked

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this statute.

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Discussion

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NRS 18.130(1) allows a defendant to require an out-of-state plaintiff to post security for

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“the costs and charges” that “may be awarded against” it.2 To trigger this obligation, the

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defendant must file and serve on the plaintiff “a written demand therefor within the time limited

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for answering the complaint.”3 When a proper demand is made, NRS 18.130(1) imposes an

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automatic stay on “all proceedings in the action” until the plaintiff posts a bond for—or deposits

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ECF 10 at 2.

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Nev. Rev. Stat. § 18.130(1).

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Id.

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cash in the amount of—$500.4 Once the plaintiff posts the security, it must “notify the

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defendant,” and the defendant then has 10 days to respond to the complaint.5 If the plaintiff fails

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to post the demanded security within 30 days of the notice, “the court or judge may order the

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action to be dismissed.”6

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NRS 18.130 does not require a court order to compel an out-of-state plaintiff to post a

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cost bond; it requires the defendant to send a written demand for the bond before its answer to

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the complaint is due, and that demand triggers the process.7 This process happens without action

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by the court. If the 30 days elapse without the plaintiff posting the bond or cash, only then “may

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the court or judge” take action.8

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So, not only does SFR not need an order from this court at this time, it does not appear

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from this motion that SFR has done what is required to trigger Nationstar’s obligations under

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NRS 18.130 or the stay it affords: send a timely written demand to Nationstar.

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Conclusion

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Accordingly, IT IS HEREBY ORDERED that SFR’s Motion for Security of Costs
[ECF 10] is DENIED.

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Dated March 3, 2016

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_______________________________
_____________________
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Jennifer A. Dorsey
er A. Dorsey
r
United States District Judge
d
District Judge
d

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Id.

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Id.

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Nev. Rev. Stat. § 18.130(4).

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Nev. Rev. Stat. § 18.130(1).

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Nev. Rev. Stat. § 18.130(4).

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