Bank of America, N.A. v. Bacara Ridge Association et al

Filing 45

ORDER Granting 44 Stipulation to Stay Litigation. Signed by Judge Richard F. Boulware, II on 4/11/17. (Copies have been distributed pursuant to the NEF - ADR)

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Case 2:16-cv-02533-RFB-NJK Document 44 Filed 04/10/17 Page 1 of 4 1 6 ARIEL E. STERN, ESQ. Nevada Bar No. 8276 VATANA LAY, ESQ. Nevada Bar No. 12993 AKERMAN LLP 1160 Town Center Drive, Suite 330 Las Vegas, NV 89144 Telephone: (702) 634-5000 Facsimile: (702) 380-8572 Email: ariel.stern@akerman.com vatana.lay@akerman.com 7 Attorneys for Plaintiff 2 3 4 5 8 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 9 AKERMAN LLP 1160 TOWN CENTER DRIVE, SUITE 330 LAS VEGAS, NEVADA 89144 TEL.: (702) 634-5000 – FAX: (702) 380-8572 10 BANK OF AMERICA, N.A., 11 12 13 14 Plaintiff, vs. BACARA RIDGE ASSOCIATION; SFR INVESTMENTS POOL 1, LLC; and ALESSI & KOENIG, LLC, STIPULATION AND ORDER TO STAY LITIGATION PENDING FINAL RESOLUTION OF PETITION(S) FOR WRIT OF CERTIORARI TO UNITED STATES SUPREME COURT Defendants. 15 16 Case No.: 2:16 cv 02533-RFB-VCF SFR INVESTMENTS POOL 1, LLC, Counter/Cross Claimaint, 17 vs. 18 BANK OF AMERICA, N.A.; THE BANK OF NEW YORK MELLON FKA THE BANK OF NEW YORK, AS THE TRUSTEE FOR THE BENEFIT OF THE CERTIFICATE HOLDERS OF THE CWHEQ IN., HOME EQUITY LOAN ASSET-BACKED CERTIFICATES, SERIES 2006-S2; and DEREK L. SMITH, an individual, 19 20 21 22 Counter/ Cross Defendants. 23 Plaintiff Bank of America, N.A. (BANA) and Defendant SFR Investment Pool 1, LLC 24 25 26 27 (collectively, the parties)1 stipulate as follows: 1 Defendant Alessi & Koenig, LLC (Alessi) filed a chapter 7 bankruptcy petition in the U.S. Bankruptcy Court for the District of Nevada on December 13, 2016, under Case No. 16-16593. Accordingly, the stay provisions of 11 U.S.C. § 362 (a)(1) automatically apply to Alessi. 28 {41173453;1} 1 Case 2:16-cv-02533-RFB-NJK Document 44 Filed 04/10/17 Page 2 of 4 1 1. This lawsuit involves the parties seeking quiet title/declaratory relief and other claims 2 related to a non-judicial homeowner's association foreclosure sale conducted on a Property pursuant to 3 NRS 116. 4 2. On August 12, 2016, the Ninth Circuit issued its decision on appeal in Bourne Valley 5 Court Tr. v. Wells Fargo Bank, N.A., 832 F.3d 1154, 1159-60 (9th Cir. 2016) holding that NRS 116 is 6 facially unconstitutional. The Court of Appeals issued its mandate in the appeal on December 14, 7 2016, vacating and remanding the judgment to the United States District Court, District of Nevada. 8 3. On January 26, 2017, the Nevada Supreme Court issued its decision in Saticoy Bay AKERMAN LLP LLC Series 350 Durango 104 v. Wells Fargo Home Mortgage, a Div. of Wells Fargo Bank, N.A., 133 10 1160 TOWN CENTER DRIVE, SUITE 330 LAS VEGAS, NEVADA 89144 TEL.: (702) 634-5000 – FAX: (702) 380-8572 9 Nev. Adv. Op. 5, ___ P.3d ___, 2017 WL 398426 (Nev. Jan. 26, 2017), holding, in direct contrast to 11 Bourne Valley, that no state action supported a challenge under the Due Process Clause of the United 12 States Constitution. 13 4. The parties in Bourne Valley and Saticoy Bay are seeking review of both decisions in 14 the United States Supreme Court. Bourne Valley's deadline to file its petition for writ of certiorari of 15 the Ninth Circuit's Bourne Valley decision is April 3, 2017. See Bourne Valley Court Trust v. Wells 16 Fargo Bank, NA., United States Supreme Court Case No. 16A753. Wells Fargo's deadline to file its 17 petition for writ of certiorari of the Nevada Supreme Court's Saticoy Bay decision is April 25, 2017. 18 Thus, the parties believe that the stay requested herein is appropriate. 19 5. On February 8, 2017, the Nevada Supreme Court stayed the issuance of the remittitur in 20 Saticoy Bay pending the filing of a petition for a writ of certiorari with the United States Supreme 21 Court, and if a petition is filed, the stay of the remittitur will remain in effect until final disposition of 22 the certiorari proceedings before the United States Supreme Court. 23 6. Since then, several judges in this district have stayed similar cases pending the 24 exhaustion of all appeals before the United States Supreme Court. E.g., Nationstar Mtg. LLC v. Green 25 Valley S. Owners Assoc., No. 2:16-cv-00883-GMN-GWF; Bank of America, N.A. v. Canyon Willow 26 Trop Owners' Assoc., No. 2:16-cv-01327-GMN-VCF (D. Nev. Oct. 26, 2016); Deutsche Bank Nat'l 27 Trust Co. v. Copper Sands HOA, No. 2:16-cv-00763-JAD-CWH (D. Nev. Feb. 28, 2017). 28 {41173453;1} 2 Case 2:16-cv-02533-RFB-NJK Document 44 Filed 04/10/17 Page 3 of 4 1 7. To determine if a continued stay is appropriate, the Court considers (1) damage from 2 the stay; (2) hardship or inequity that befalls one party more than the other; and (3) the orderly course 3 of justice. See Dependable Highway Exp., Inc. v. Navigators Ins. Co., 498 F.3d 1059, 1066 (9th Cir. 4 2007) (setting forth factors). Here, the factors support a stay of litigation. 5 a. Damage from Stay: Any damage from a temporary stay in this case will be minimal if were allowed to continue that could be mooted by a decision in Bourne Valley certiorari proceedings. 8 Indeed, the parties will be enable to avoid the cost and expense of continued legal proceedings in light 9 of what is unsettled law to say the least. Moreover, the Court will be relieved of expending further 10 AKERMAN LLP balanced against the potential fees, costs, and time which would surely ensue in this matter if litigation 7 1160 TOWN CENTER DRIVE, SUITE 330 LAS VEGAS, NEVADA 89144 TEL.: (702) 634-5000 – FAX: (702) 380-8572 6 time and effort until the conflict between the circuit and Nevada Supreme Court is resolved. Thus, a 11 stay will benefit all parties involved herein. 12 b. Hardship or Inequity: There will be no significant hardship or inequity that befalls one 13 party more than the other. This relatively equal balance of equities results from the need for all parties 14 to have finality, given the split in the state and federal court decisions. The parties agree that any 15 hardship or inequity falling on any of them is outweighed by the benefits of a stay. 16 c. Orderly Course of Justice: At the center of this case is a homeowners' association's 17 foreclosure sale under NRS 116. The outcome of the petitions for writ in Bourne Valley and/or 18 Saticoy Bay have the potential to affirm or overturn either case. Without a stay, the parties will 19 expend resources that will be unnecessary if either or both petitions are granted. A stay would also 20 avoid a likely appeal from any subsequent judgment in this case. 21 substantially promote the orderly course of justice in this case. A stay will avoid the moving forward 22 without final resolution of the federal issues and the state court/federal court conflict. 23 8. A temporary stay would The parties agree that all proceedings in the instant case, including motion and other 24 litigation deadlines, are stayed pending final resolution of the Bourne Valley and/or Saticoy Bay 25 certiorari proceedings before the United States Supreme Court. 26 27 9. Defendant SFR shall be required to keep current on all property taxes and assessments, HOA dues, maintain the property, and maintain insurance on the property at issue. SFR shall also be 28 {41173453;1} 3 Case 2:16-cv-02533-RFB-NJK Document 44 Filed 04/10/17 Page 4 of 4 1 2 3 4 5 required to provide proof of payment and insurance upon reasonable notice to counsel for BANA. 10. Defendant SFR shall be prohibited from selling or encumbering the property unless otherwise ordered by the Court. 11. Plaintiff BANA is prohibited from conducting foreclosure proceedings on the property unless otherwise ordered by the Court. 6 12. 7 appropriate. 8 9 AKERMAN LLP 1160 TOWN CENTER DRIVE, SUITE 330 LAS VEGAS, NEVADA 89144 TEL.: (702) 634-5000 – FAX: (702) 380-8572 10 11 12 13 Any party may file a written motion to lift stay at any time for either party determines it AKERMAN LLP KIM GILBERT EBRON /s/ Vatana Lay, Esq. ARIEL E. STERN, ESQ. Nevada Bar No. 8276 VATANA LAY, ESQ. Nevada Bar No. 12993 1160 Town Center Drive, Suite 330 Las Vegas, Nevada 89144 Attorneys for Plaintiff Bank of America, N.A. /s/ Diana Cline Ebron, Esq. DIANA CLINE EBRON, ESQ. Nevada Bar No. 10580 7625 Dean Martin Drive, Suite 110 Las Vegas, Nevada 89139 Attorney for Defendant SFR Investments Pool 1, LLC 14 15 16 17 18 Hall JAFFE & CLAYTON, LLP /s/ Ashlie L. Surer ASHLIE L. SURUR, ESQ. Nevada Bar No. 11290 7425 Peak Drive Las Vegas, Nevada 89128 Attorney for Defendant Bacara Ridge Association 19 ORDER 20 21 IT IS SO ORDERED: 22 _________________________________________ UNITED STATES DISTRICT COURT JUDGE 23 24 April 11, 2017 DATED: _________________________________ 25 26 27 28 {41173453;1} 4

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