JPMorgan Chase Bank, N.A. v. SFR Investments Pool 1, LLC et al

Filing 60

ORDER Granting 59 Stipulation to Stay Litigation. Signed by Magistrate Judge Cam Ferenbach on 5/12/17. (Copies have been distributed pursuant to the NEF - MR)

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Abran E. Vigil
Nevada Bar No. 7548
Russell J. Burke
Nevada Bar No. 12710
Kyle A. Ewing
Nevada Bar No. 14051
BALLARD SPAHR LLP
100 North City Parkway, Suite 1750
Las Vegas, Nevada 89106
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
[e-mail]

Attorneys for JPMorgan Chase
Bank, N.A.

DISTRICT OF NEVADA

[phone] FAX [phone]

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LAS VEGAS, NEVADA 89106

BALLARD SPAHR LLP

UNITED STATES DISTRICT COURT

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100 NORTH CITY PARKWAY, SUITE 1750

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JPMORGAN CHASE BANK, N.A.,
Plaintiff,
vs.
SFR INVESTMENTS POOL 1, LLC, a
Nevada limited liability company;
MONTAGNE MARRON COMMUNITY
ASSOCIATION, a Nevada non-profit
corporation; RODRIGO J. COLOMA, an
individual; NICOLE E. COLOMA, an
individual,
Defendants.

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SFR INVESTMENTS POOL 1, LLC, a
Nevada limited liability company,
Counterclaimant/Cross-Claimant,
vs.
JPMORGAN CHASE BANK, N.A., a
national banking association; RODRIGO
J. COLOMA, an individual,
Counter-Defendant/Cross-Defendant.

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///

DMWEST #16478853 v2

Case No.: 2:16-cv-02230-RFB-VCF
JOINT STIPULATION AND ORDER
TO STAY LITIGATION

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STIPULATION AND ORDER TO STAY LITIGATION

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Plaintiff/Counter-defendant

JPMorgan

Chase

Bank,

N.A.

(“Chase”),

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Defendant/Counterclaimant/Cross-Claimaint SFR Investments Pool I, LLC (“SFR”),

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and Defendant Montagne Marron Community Association (the “HOA”) (collectively,

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the “Parties”)1, hereby stipulate and agree as follows:

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1.

This is a quiet title action arising from a homeowners’ association

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foreclosure sale (the “Sale”) of residential property located at 11208 Lavandou Drive,

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Las Vegas, Nevada (the “Property”).

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2.

pursuant to NRS Chapter 116.
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Chase alleges it is the beneficiary of a deed of trust recorded against the

[phone] FAX [phone]

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LAS VEGAS, NEVADA 89106

BALLARD SPAHR LLP

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100 NORTH CITY PARKWAY, SUITE 1750

Alessi & Koenig, LLC, as agent for the HOA, conducted the Sale

Property. Chase contends that the deed of trust survived the Sale or, alternatively,

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that the Sale was void.

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4.

SFR contends the Sale extinguished the deed of trust as a matter of law.

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5.

Chase added the HOA as a necessary party to the action due to its role

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in the Sale.

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6.

Chase argues, among other things, that the notice provisions of NRS

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Chapter 116 are facially unconstitutional under the Due Process Clause of the

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Fourteenth Amendment.

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7.

In Bourne Valley Court Trust v. Wells Fargo Bank, NA, 832 F.3d 1154

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(9th Cir. 2016), the Ninth Circuit Court of Appeals accepted this argument and held

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that Chapter 116’s notice provisions facially violate due process by requiring

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purported junior lienholders to “opt in” for notice of a homeowners’ association

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foreclosure sale.

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Defendant Rodrigo Coloma has been served but has not appeared. The staying of
this action would not prejudice Rodrigo Coloma in any way. Chase voluntarily
dismissed Nicole Coloma from this action.
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In Saticoy Bay LLC Series 350 Durango 104 v. Wells Fargo Home

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Mortg., 388 P.3d 970, 972 (Nev. 2017), the Nevada Supreme Court disagreed with

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Bourne Valley by holding that a foreclosure sale under Chapter 116 does not involve

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sufficient state action to implicate the Due Process Clause of the Fourteenth

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Amendment.

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United States Supreme Court for certiorari on or about April 5, 2017.

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See id.

The non-prevailing party in Bourne Valley petitioned the

The Parties request a stay of litigation to allow the United States

Supreme Court to address the certiorari petition in Bourne Valley.
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Several judges in this district have stayed similar cases pending the

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Mtg. LLC v. Green Valley S. Owners Assoc., No. 2:16-cv-00883-GMN-GWF (D. Nev.,

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LAS VEGAS, NEVADA 89106

BALLARD SPAHR LLP

exhaustion of all appeals before the United States Supreme Court. E.g., Nationstar

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100 NORTH CITY PARKWAY, SUITE 1750

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Oct. 5, 2016); Bank of America, N.A. v. Canyon Willow Trop Owners' Assoc., No. 2:16-

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cv-01327-GMN-VCF (D. Nev. Oct. 26, 2016); Deutsche Bank Nat'l Trust Co. v. Copper

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Sands HOA, No. 2:16-cv-00763-JAD-CWH (D. Nev. Feb. 28, 2017); Ditech Financial

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Services, LLC v. Highland Ranch Homeowners Assoc., No. 3:16-cv-00194-MMD-WGC

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(D. Nev. Mar. 7, 2017); Wells Fargo Bank, N.A. v. Las Vegas Dev. Group, LLC, 2:16-

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cv-02621-RFB-NJK (D. Nev. Mar. 9, 2017).

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To determine if a continued stay is appropriate, the Court considers (1)

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any potential damage or prejudice arising from the stay; (2) any potential hardship or

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inequity that befalls one party more than the other as a result of the stay; and (3) the

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orderly course of justice. See Dependable Highway Exp., Inc. v. Navigators Ins. Co.,

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498 F.3d 1059, 1066 (9th Cir. 2007) (setting forth factors). Here, the factors support a

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stay of litigation.

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a. Damage or Prejudice from Stay:

Any potential damage or prejudice

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arising from a temporary stay in this case would be minimal when

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balanced against the fees, costs, and time which will be incurred in

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litigation. The resolution of the appeal in Bourne Valley could resolve

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threshold issues pending in this matter and accordingly influence the
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litigation strategies of the parties. A stay would also ensure that the

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issues raised in this matter are resolved in a consistent and efficient

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manner. Moreover, a stay will conserve judicial resources and promote

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judicial efficiency by preventing potentially unnecessary litigation

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pending the outcome of the appeals.

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b. Hardship or Inequity: The Parties agree that any potential hardship or

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inequity falling on any of them is outweighed by the benefits of a stay, as

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all parties will benefit from waiting until the appeals are resolved.

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c. Orderly Course of Justice: At the center of this case is a homeowners'

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Supreme Court appellate proceedings in Bourne Valley has the potential

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LAS VEGAS, NEVADA 89106

BALLARD SPAHR LLP

association's foreclosure sale under NRS 116.

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100 NORTH CITY PARKWAY, SUITE 1750

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to resolve threshold issues pending in this matter. Without a stay, the

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parties will expend resources on litigation involving these cases that

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could be rendered unnecessary if the petition is granted. A temporary

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stay would substantially promote the orderly course of justice in this

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case by preventing unnecessary expenditure of the parties’ and the

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Court’s resources pending final resolution of Bourne Valley.

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12.

The outcome of any

The Parties agree that all proceedings in the instant case, including

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motion, discovery, and other litigation deadlines are stayed pending final resolution

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of the Bourne Valley certiorari proceedings before the U.S. Supreme Court.

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after the date of an order granting this joint motion.

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The Parties agree to submit a status report to the Court every 90 days

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The Parties further agree that each report will inform the Court of the

status of the certiorari petition in Bourne Valley.

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15.

The Parties further agree that each report will inform the Court

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regarding whether the Parties wish to keep the stay of litigation in place or lift the

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stay.

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The Parties further agree that any party to this case may independently

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move to lift the stay at any time.

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Dated: this 11th day of May, 2017.

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BALLARD SPAHR LLP

KIM GILBERT EBRON

/s/ Russell J. Burke
Abran E. Vigil, Esq.
Nevada Bar No. 7548
Russell J. Burke
Nevada Bar No. 12710
Kyle A. Ewing
Nevada Bar No. 14051
100 North City Parkway, Suite 1750
Las Vegas, Nevada 89106

/s/
Jacqueline A. Gilbert
Diana Cline Ebron
Nevada Bar No. 10580
Jacqueline A. Gilbert
Nevada Bar No. 10593
Karen L. Hanks
Nevada Bar No. 9578
7625 Dean Martin Dr., Suite 110
Las Vegas, Nevada 89014

Attorneys for JPMorgan Chase Bank,
N.A.

Attorneys for SFR Investments Pool 1,
LLC

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[phone] FAX [phone]

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LAS VEGAS, NEVADA 89106

BALLARD SPAHR LLP

100 NORTH CITY PARKWAY, SUITE 1750

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THE CLARKSON LAW GROUP, P.C.

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By: /s/ Matthew J. McAlonis
Matthew J. McAlonis, Esq.
Nevada Bar No. 10003
2300 West Sahara Ave., Ste. 950
Las Vegas, NV 89102

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Attorney for Montagne Marron Community Association

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ORDER

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IT IS SO ORDERED.
U.S. MAGISTRATE JUDGE
Dated:

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5-12-2017