HSBC Bank USA, N.A. v. Estrella II Homeowners Association et al

Filing 46

ORDER granting 45 Stipulation to Stay Case Pending Decision from the Nevada Supreme Court. Signed by Judge Richard F. Boulware, II on 12/28/2017.(Copies have been distributed pursuant to the NEF - MMM)

Case 2:17-cv-00016-RFB-GWF Document 45 Filed 12/27/17 Page 1 of 4

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WRIGHT, FINLAY & ZAK, LLP
Dana Jonathon Nitz, Esq.
Nevada Bar No. 0050
Lindsay D. Robbins, Esq.
Nevada Bar No. 13474
7785 W. Sahara Ave., Suite 200
Las Vegas, NV 89117
[phone]; Fax: [phone]
[e-mail]
[e-mail]
Attorneys for Plaintiff HSBC BANK USA, NA, AS TRUSTEE FOR THE LMT 2006-7 TRUST
FUND

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IN THE UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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HSBC BANK USA, N.A., AS TRUSTEE FOR
THE LMT 2006-7 TRUST FUND,

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STIPULATION AND ORDER TO STAY

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Plaintiff,
vs.
ESTRELLA II HOMEOWNERS’
ASSOCIATION, a Nevada non-profit
corporation; SFR INVESTMENTS POOL I,
LLC, a Nevada limited liability company;
Defendants.

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Case No.: 2:17-cv-00016-RFB-GWF

SFR INVESTMENTS POOL 1, LLC,

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Counterclaimant/Cross-Claimant,

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vs.

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HSBC BANK USA, N.A., AS TRUSTEE FOR
THE LMT 2006-7 TRUST FUND; ASHAR W.
MUJTABA, an individual,
Counter-Defendant/Cross-Defendant.

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STIPULATION AND ORDER TO STAY

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Plaintiff/Counter-Defendant, HSBC Bank USA, N.A., as Trustee for the LMT 2006-7

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Trust Fund (“HSBC Bank”), Defendant/Counterclaimant, SFR Investments Pool 1, LLC

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Case 2:17-cv-00016-RFB-GWF Document 45 Filed 12/27/17 Page 2 of 4

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(“SFR”), and Defendant, Estrella II Homeowners’ Association (“Estrella”), by and through their

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respective counsels of record, hereby stipulates as follows in accordance with LR6-1 and LR

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26-4.

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WHEREAS the above-captioned matter concerns declaratory relief claims regarding real
property located at 6243 Copper Light Street, Las Vegas, Nevada 89081 (the “Property”).

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WHEREAS Defendant, SFR, claims it acquired title to the Property following an

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Association foreclosure sale under NRS Chapter 116, and further claims said foreclosure

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eliminated that Deed of Trust recorded with the Clark County Recorder’s Office on May 26,

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2006, as Book and Instrument Number 20060526-0002958.

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WHEREAS Defendant, Estrella, initiated non-judicial foreclosure proceedings before

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the Nevada Supreme Court decision in SFR Investments Pool 1 v. U.S. Bank, N.A., 334 P.3d

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408 (Nev. 2014).

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WHEREAS on August 12, 2016, the Ninth Circuit issued its decision in Bourne Valley

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Court Trust v. Wells Fargo Bank, N.A., 832 F.3d 1154, 1159-60 (9th Cir. 2016) (“Bourne

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Valley”), holding that NRS Chapter 116 is facially unconstitutional.

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WHEREAS on April 21, 2017, the U.S. District Court for the District of Nevada issued

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an Order in The Bank of New York Mellon fka The Bank of New York, as Trustee for the

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Certificateholders CWABS, Inc. Asset-Backed Certificates, Series 2006-6 v. Star Hill

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Homeowners Association et al., Case No. 2:16-cv-025610-RFB-PAL, certifying to the Nevada

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Supreme Court the question: “Whether NRS § 116.31168(1)’s incorporation of NRS § 107.090

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required a homeowner’s association to provide notices of default and/or sale to persons or

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entities holding a subordinate interest even when such persons or entities did not request notice,

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prior to the amendments that took effect on Oct. 1, 2015?” ECF No. 41, 7:1-4 (“Certified

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Question”). The Nevada Supreme Court issued an Order Accepting Certified Question on June

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13, 2017. It has not yet been scheduled for oral argument.
WHEREAS, the parties dispute whether the outcome of the Certified Question will have

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any affect on the application and binding nature of the Bourne Valley decision upon this Court.

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Case 2:17-cv-00016-RFB-GWF Document 45 Filed 12/27/17 Page 3 of 4

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NOW WHEREFORE, based on the foregoing,

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IT IS HEREBY STIPULATED AND AGREED that staying this case pending decision

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from the Nevada Supreme Court on the Certified Question will enable the parties to present

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arguments and evidence to this Court at an appropriate time with complete legal authority,

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thereby promoting the most efficient use of the Court’s and the parties’ limited resources. The

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parties recognize that SFR previously filed a Motion to Stay the Litigation Pending the Certified

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Question [ECF No. 35], which HSBC Bank Opposed [ECF No. 40], before it became apparent

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how the Court was ruling on other requests for stays of litigation pending the Certified

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Question. To preserve judicial resources, HSBC Bank has changed its position and therefore

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stipulates to a stay of the current litigation. Staying the case pending the decision from the

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Nevada Supreme Court on the Certified Question will also enable the parties to continue

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ongoing settlement discussions.

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IT IS FURTHER STIPULATED AND AGREED that either party may file a written

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motion to lift stay at any time either party determines it appropriate, and either party may file an

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opposition to the motion.

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Case 2:17-cv-00016-RFB-GWF Document 45 Filed 12/27/17 Page 4 of 4

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IT IS FURTHER STIPULATED AND AGREED that all proceedings in this lawsuit are

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stayed, and all upcoming deadlines, hearings and conferences, including the deadline for the

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Estrella and HSBC Bank to file dispositive motions and the pre-trial order, shall be vacated

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pending the stay.

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DATED this 27th day of December, 2017.

DATED this 27th day of December, 2017.

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WRIGHT, FINLAY & ZAK, LLP

KIM GILBERT EBRON

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/s/ Lindsay D. Robbins, Esq.
Lindsay D. Robbins, Esq.
Nevada Bar No. 13474
Attorneys for Plaintiff

/s/ Jacqueline A. Gilbert, Esq.
Jacqueline A. Gilbert, Esq.
Nevada Bar No. 10593
Attorneys for SFR Investments Pool 1, LLC

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DATED this 27th day of December, 2017.

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LIPSON NEILSON COLE SELTZER & GARIN

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/s/ Amber M. Williams, Esq.
Amber M. Williams, Esq.
Nevada Bar No. 12301
Attorneys for Estrella II HOA

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ORDER

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IT IS SO ORDERED.
DATED this ____ day of __________, 2018.
28th
December 2017
___________________________________
MAGISTRATE JUDGE
UNITED STATES DISTRICT JUDGE

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Respectfully Submitted by:
WRIGHT, FINLAY & ZAK, LLP

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/s/ Lindsay D. Robbins, Esq.
Lindsay D. Robbins, Esq.
Attorneys for Plaintiff HSBC
Bank USA, N.A., as Trustee
for the LMT 2006-7 Trust Fund

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