Kehoe et al v. Aurora Loan Services LLC et al

Filing 24

ORDER DENYING Ps' 6 Motion to Remand. FURTHER ORD GRANTING with prejudice D Aurora Loan Services LLC's 5 Motion to Dismiss the Complaint. FURTHER ORD GRANTING Ps' # 20 Motion to Enlarge Time : Ps' response to D Quality Loan Service Corporation's # 19 Motion for Summary Judgment due by 11/6/2010. FURTHER ORD DENYING Ps' # 20 Motion to Certity Question to the Nevada Supreme Court. Signed by Judge Robert C. Jones on 10/20/2010. (Copies have been distributed pursuant to the NEF - DRM)

1 2 3 4

5 6 UNI E D STATES DI T RI T CO U RT T S C

7

DI TR I T O F N EVA D A SC

8 JOHN KEHOE and KATHY KEHOE,

9 1 0 v.

Plitfs, a nif

) ) ) ) ) )

3:O- vO0256- CJ- AM 1 cRR

Kehoe et al v. Aurora Loan Services LLC et al

1 l 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 20 21
22

AUROM L AN SERVI ES L G QUALIY ) O C L T ORDER LOAN SERVI E CORP, M MCGIL and ) C JI L DOES 1t r 10,iclsie, hu nuv ) ) Def n ant . ed s ) ) ) Curentybef r t eCouri Deendan Aur r LoanSer iesLLC' (Aur r ' Moton r l oe h ts f t oa vc S ' o a' i ) t Dimiste Complit( 5)fldon May5,2010.Plit sJohn Kehoe and Kat yKehoe o ssh an # i e an i g h (ol ciel r f redt her i as' litf'fldanOpposiin( 15)onJune 11, 0,and c l tv y e e r o e n P anis )i e f e to # 201 Aur r flda Repl ( 18)onJune21,2010. oa i e y# Alobef r t eCouri Plitfs' int Remand(/ )fldonMay7, s oe h ts anif Moto o /6 i e 2010.Aur r oa fld an Oppost n( 1 )onJune 1 2010,and Def ndantQualyLoanSewieCoror ton i e ii # 2 o , e i t c p ai (QuaIy' flda Joider( 13)on June 2,2010. ' i )i te n#
Doc. 24

Al o bef r t e Cour i Pl i t s' M oton t Enl r e Ti e and M ot n t Ceriy s oe h t s an i s io ag m io o t f

23 Queston t t e Nevada Supr me Cour ( 20)fld on J l 23,2010. Qualy fld an i oh e t# i e uy 1 ii te

2 Opposiin( 21)onAugus 6,2010, Plitf fld a Repl ( 22)onAugu t16,2010. 4 to # t and a nis i fe y# s
25
26 27
28

The Cour hear or lar um enton t e m otons on Sept m ber27, 0. t dag h i e 201
BACKG R O U N D Pl i tfs ar f r er ow ner ofpr pery I cat d at821 G oler Pass Road i I clne a n if e o m s o to e fs nni

:Pl i tf s'm oton t enl r e tm e was fl d i r s onset a M oton f r S'm r a y J dgm ent a n if i o ag i ie n e p o i o A nz u

( 1 )fld b QtaiyonJ l 1 ,2 1 . # 9 ie y z lt uy 5 0 0

Dockets.Justia.com

l Viage, l l Nevada.On Oct ber o, o z 2006, aitfsexecut da pr m is r not anddeedof r st Pl n if e o soy e tu
2 w hi h I t d Fist M agnus Fi anci l Cor or ton as t e I nder and M orgage El c r ni c ie s r na p ai he t e to c 3 Regi taton Sy t m s,I c. t e benefci r . The tus ee oft e deed oftustwas orgi al sr i se n as h i ay rt h r in l y 4 Fis A m erc n Til , but t e benefc ar subst u ed Def ndant Q ual y Loan Ser i e rt ia te h ii y it t e i t vc

5 Cor orton(' uaIy' ast etusteon Mar h5,2009.Aur r assumedteser iigo t e p ai d i ) h r e Qt c oa h vcn f h
6 I an som etm e aferorgi aton. o i t in i

7

At som e poi t Pl i tfs f l behi d i t ei m ont l m orgage paym ent and wer n , a n if e l n nh r hy t s e

8 alegedl negotatng wih Aur r t r - or t ei def uled m odgage. Durng t attm e,on l y ii t o a o ew k h r a t ihi

9 Sept m ber24, e 2009, u l y' agentr c r ed a Notce ofBr ac an De auland ofEl c i n Q ai s t e od i ehd ft e to 1 t Cause Sal ofReal opery underDeed ofTr s . O n M ar h 1 ,201 ,Q ual y r cor ed 0o e Pr t ut c0 0 ied t 11 a Notce ofTr st e' Sal ,and Aur r pur hased t e pr pery a a tust e' s l on M ar h i ues e oa c h o t t r e s ae c 1 31,2010. Pl i tss r c ied not e o t ese r c r i gs vi cerii d m ai 2 ani e ev i fh c e o dn a te f l .
13 O n M ar h 31,2010,Pl i tfs com m enced t i acton by flng a Com pl i tf r Q ui t c a n if hs i ii an o e

1 Til i sat cour. Plitfsfld suiagais t e Ianserier( ur r ) t e tust e ont e 4 te n t e t an if i e t n th o vc A o a ,h r e h 1 deedoftustQualy)andte' rerathef r clsur s l (i McGi) Plitf' 5 r ( i , h ' i ' t o e o e ae Jm t c I. anis Complit I f an
1 assers t r e causes ofacton. The fr tcause ofacton appear t alege t atDef ndant 6 t he i is i so l h e s

1 f i d t s tsyt e notc pr viinsunderNevada Iw whent eyconductd a nonu iil 7 a l o a if h e ie o so a h e jdca
1 f r cl sur on t e pr pery. The second c use ofac i n appear t as ed a vi l ton oft e 8 oe o e hot a to so s oa i h 1 Nev da Deceptve Tr de Pr ctc sAc by De endant ualy.Fi al , he t id caus ofact n 9 a i a a ie t f Qi t n l t hr y e i o 2 as eds a vi l ton of he i pl d cov nantofgood f i and f i deal g by Def ndant ur r . 0 s oa i tmi e e at h ar i n e A oa
21 Folow i g t e fl g oft e Com pl i ti t i m ater Aur r r m oved t e case t f der l l n h ii n h an n hs t , oa e h oe a

2 coud onte gr undsofdieri j rs iton.Aur r as erst att er i complt dieri 2 ho v st uid ci y oa s t h h e s e e v st y 23 bet eent e paris becauset e idiiual endan , m McGi, faudulnt j ied. w h te h n vd def t Ji l was r l e l on y
24 Pl i tfs now seek r m and of t i case t st t coud. I addii n,Aur r has m oved t a n if e hs o ae n to oa o

25 di r i s t e c ai s ass ded agai s i sns h l m e n tt .
26 DI C U S SI N S O

27 1 M oton t Rem and . io

28

Plitfs ar ue tatt i casewas i pr pery r m ov d fom sat cour. ( oton t an if g h hs m o l e e r te tMi o
2

l Remand ( 6)at2) Accor ig t Plitf,t er ' r Nevada p rison bot siesoft i # . dn o anis h e ' e f a a te hd hs 2 mater s t er i no dier i j rs it n. !.at3. Mor ov r Plitf as er tatt e t ,o h es v st u idci ' # y o' e e , anis s t h h f 3 c mpliti prdiat donstt Iw , doesnotars underf der law.Lo an s e c e a e a and ie e a I d.
4 l r sponse,Aur r ar ues t att er 's com pl t di er iy because Def ndantJi ne oa g h h ei e e v st e m

5 McGi wasfaudulntyj ied. ( pp' t Mott Remand(/ 2)at1) Ac or igt Aur r , l l r e l on ' O n o .o /1 . c dn o oa 6 McGi' j iderwas faudul ntbec use Pl itfs do notasser any c us ofac i n agai s ls o n l r e a a n if t ae to nt

7 hi .Rat er he i mer l ientid i t eComplitaste' rer att efr clsur sal .!. m h , s ey d ie n h f an h ' i ' h o e o e e # c
8 at2. Because Pl i tfs do no asser any f ct alalegatons orcl i s f rr lefagai stM cG i a n if t au li am o ei n l l 9 Aur r ar ues t athe i a sham def ndantand hi cii enshi does noti pactdi er iy. oa g h s e s tz p m v st
10 ' m oton t r m and i t e pr perpr cedur f rchalengi g r m oval' M oor - hom as A i oe sh o o eo l ne . ' eT

11 v. ask Ail es,Ic.553F.d 1241,1244 ( t Ci. Al a ri n , n 3 9h r2009) dr e r movalsat t i srct . dh e t ue s ti l y
12 const ued and any doubtaboutt e rghtofr m ovalr quies r sol ton i f vorofr m and. r hi e e r e ui n a e ' '
13
.

!.'tst bepr s medtatac us I soutie(he)i i dj rsditon(fhef der l tl # 'i o I eu h a ei e sd t I t u i ci o t e a cours me

1 andtebur enofesabl higt econtar r st uponteparyass rigj rs iton. Abr qo 4 h d tinh s r ye s h t e tn u id ci ' e ' 1 Abr qov.Dow Chem. ,443 F.d676,684( t Ci. 5 e Co. 3 9 h rzoo6lqu tngKokk nenv.Gu r in t oi o a da 1 Lie Is.Co.ofAm.511U. .375,377,114S. t 1673,128 L. d.d 391( gg4laler t ns 6 fn , S C. E2 l t t ai o
1 i orgial. The T tong pr sum pton agaistr m ov lurs it n meanst att e def ndant 7 n in ) 'r s e i n e a j id c i o hh e
18 al ays has t e bur en of est blshi g t atr m ovali pr per'and t att e coud r sol es aI w h d ain h e so , hh ev I

1 am bi ui i f vorofr m and t sat cour. Gaus v.Mi s,l c. 980 F.d 564,566 ( t Ci. 9 g t na y e o te t l n, e 2 9h r

20 1992) .
21 A . D i er iy of Cii enshi v st tz p

22 Dier i jrs iton i gover ed by28 U. . .j 1 32.Acc r igt t atsatt ,t e v st u idci s y n SC 3 o dn o h t u e h 23 dititc ursd halh veorgialurs itono aIciiacinswher temateri contover y src o t ' l a s i n j idc i f I vl to eh tn rs
24 exc edst e sum orval e of$75, 00.and i bet een' iiens ofdif r n St t s. 28 U. . . e h u 0' sw ' tz c fe e t a e ' ' SC

25 1332( ) Alhoughanacin maybe r mov d t fder l t ywher t er i c m plt a. t to e e o e a couronl e h e s o ee
26 di er iy ofcii enshi ,' ne excepton t t e r quiem entf rcom pl t di er iy i w her a v st tz pd o i oh e r o e e v st s e

27 non- iere def ndanthasbeen'r udulnt j ied.'Hunt rv.PhipMori USA,582 F.d dv s e fa e l on ' y e l i rs 3

28 1039, 1043( t Ci. 9 h rzooglqu tn Mori v.PrncessCr ies,Ic.236F.d 1061,1067(t t o ig rs i us n , 3 9h
3

l Ci.2001). Joideri faudulnt'fte plit ff i t sat a cause ofact n agaista r ) n sr e ' h ani al o t e i fs i o n
2 r si entdef ndant and t e f i r i obvi us acc r i g t t e setl d r l s of t e st t . ed e , h al e s u o odn o h te u e h ae ' '

3 Hunt r 582 F.d at1 43 (ntr alquottonsand ci tons omied) l such a c se,'he e, 3 0 i en ai ti a t .n t a' t
4 di ti t cour m ay i nor t e pr sence of t at def ndant f r t e pur ose of est bl hi g s rc t g eh e h e oh p ain s 5 di er iy. .!. v st ' #
6 I t i case, t e Cour fnds t at r m oval w as pr per because t e non- i er e n hs h ti h e o h dv s

7 def ndantJi McGi, faudulntyj ied.TheComplitientfesMcGiasar sient e ,m l was r l e l on an d ii l l ed
8 ofNevada and st t s t athe Ss t e per on who cred t e f r cl sur sal on M ar h 31 2010 ae h sh i s i h oe o e e c

9 on behal ofte benefcir. ( ompl( 1)at7) Plitf sat tataferMc i cidt e fh i a y' C .# . an is t e h t f G l re h l
1 f r cl sur on t ei house,t ey asked who t e benefci r was and M cG ilst t d he di not 0 oe o e hr h h i ay l ae d

1 k ow . No ot erf ct ar aleged as t M cG i . Thus,alhough M cG i i r f r nced i t e 1n h as e l o l l t l s ee e l nh
1 Com pl i tas t e z rer'att e f r cl sur sal ,he i notnam ed i any oft e causes ofacton 2 an h 'i' h oe o e e c s n h i 1 aleged by Pl i tfs. 3 l a n if 1 4 I t ei m oton t r m and,Pl i tfs ar ue t atM cG ili nota sham def ndantbecause nh r i oe a n if g h ls e

15 hi I ck of know l dge r gar i g t e benefci r was an 'regul rt 'i t e f r cl sur sal sa e e dn h i ay ir a iy n h o e o e e

1 undersat Iw.( otf rRemand ( 6)at6) 6 t e a M .o # .
1 7 Despie Pl i tfs'ar um ent t t e contar , Pl i tfs have not assered any cl i t a n if g oh r y a n if t am 1 agai st M cG ili hi i di i ualcapaciy. As not d i t e f r goi g,Pl i tfs f i t nam e 8 n l n s n vd t e n h oe n a n if a l o 1 M cG ili any of t ei causes of acton. M or over t ese cl i s appear t r l t sol l t 9 ln hr i e ,h am o e a e ey o

20 Qualy and Aur r . I addion,Pli t f hav pr vied n aut ort t ata creri I bl f r i t oa n t i anis e o d f o h iy h i si e o a

21 wr ng ulf r clsur i Nevada f rf ing t n me te benefcir f l wig a non-udiil o f oe o e n o al o a h i i a y ol n o j ca
22 f r cl sur s l . Pl i tfs have al o f ied t as er any dut owed t t em b M cG i on o e o e ae a n if s al o s t y oh y l l
23 whi h Iabiiy coul be pr di at d. Because Pl i tfs have notassered a cause of acto n cil t d ece a n if t i

24 agaist n McGi, sct enshi maybeinor dfrpur osesof er iigdieri j rsditon. lhi ii l z p g eo p det m nn v st u i ci y
25 I norng M cG il cii enshi ,t e r m ai i g pari s ar com pl t l di er e and r m ovalw as gi l' tz s ph e nn te e e ey v s e
26 appr prat . o ie

27 28

B. Am ounti Contr ver y n os I addii n t t e f r goi g ,Pl i tff al o ar ue r m and i r quied because t e n to o h o e n a n is s g e se r h
4

1 am ounti contover y does notexceed $75, 00. Acc r ig t Pl itfs,i t ei Com pl it n rs 0 o d n o a n if n h r a n,

2 t ey plad act aldamages 'n exc s of $1 000, bu I s t an $75, 00 i an am oun h e u ' i es 0, t es h 0n t

3 accor igt pr ofattetmeo til n tQualyandAur r . ( ompl( 1)at15) Aur r , dn o o h i f ra agais i t oa' C ' .# . oa 4 on t e ot erh nd, guest att e amounti contover yexc eds $75, 00 bec us Pf itfs h h a ar hh n rs e 0 a e a n if 5 ar seekng t setasi e a f r cosur sal f rpr pery pur hased f rmor t an $981, 00. e io d oe l e e o o t c o eh 0
6 ( pp' t Mot t Remand ( 12)at4) Ac or ig t Aur r ,Pl itfsar seekng t undo a O n o .o # . c d n o o a a n if e io

7 tansact n' orh nearyone miindol r . 1r itt ow l lo l l s' #. a' 8 'n act nss eki gdecl r t r orij nct e r l f ii welesabl hed t at he amount ' i en Io a a o y n u i e i ,ts l t i v e s ht 9 i c ntoveryi meas r dbytevaleo t eobjctofte Iiat n. Cohnv.Petm ar,nc. no r ss ue h u fh e h ig i ' t o' s tI , 1 281 F.d 837,841( t Ci.zoozlquotng Huntv.W ash.St t Appl Adv r Comm',432 0 3 9h r ti ae e e. n 1 U. .333,347,97S. t2434,53 L. d.d 383( 977). It eprm ar pur ose o a Iwsuii 1S C. E2 1 ) fh i y p f a ts 1 t enoi a b nkfom s lng ortansf rig pr pery,ten t e pr pedy i te obec ofte 2 o j n a r el i r e rn o t h h o sh j t h 1 Iiaton. Reves v.W el Far o Bank,N. . 201 W L2629785 * ( . .Calzololctn 3 ig i t lq s A, 0 4 ND . tiig 1 Garikl v.W el Far o Bank,483 F,d 1 74,1076 ( t Ci,1973),s ealo Cabralsv. 4 fn e ln s 20 9h r )e s . ie 1 Aur r L an Sers. 2010 W L 761081 * ( . .Cal zololholig t att e obectoft e 5 oa o v, 3 ND . t dn h h j h 1 Iiatonwast epr pedyteplitfs ughtoenoi tedef ndan fom selnglHenderon 6 ig i t ho h an i o t j n h f e tr l; i s 1 v. inst rMorn. . C, 7 Nato a t Co.LL 2008W L3 2374*1( . . ash. 0 W DW zoo8lholigt atteobj c t dn h h e t 1 oft e Iiatonwaste pr pedyt e plitf s ughtt enoi t edef ndantfom selngata 8 h ig i t ho h an if o o jnh e r l i 1 non-udiilf rclsur s l ) ' v n i t e pr pedy atisue has aleady been s l i 9 j ca o e o e ae . d e f h o E s r od n 20 f r clsur byt edef ndant...hepr perymaystlbete objctofte liatonwhente oe o e h e t ot il h e h ig i t h 21 plit suesf rijnctv r l f' Reyes, 0W L2629785* ,s e alo Deladov.Bankof an i ; o nu ie ei . e' 201 5e s q

22 Am .Cor .2009W L 4163525 * ( . .Cal2009) I Delado,t e plitf ent r d it a n, 6 ED . .n q h an if e e no
23 deed oftustwih t e def ndantt secur is pur hase ofa hom e,t en def uled on is I an r th e o et c h at to

2 payment, tedef ndantIt rs l te pr peryi an n-udiilor clsur prceedig. 4 s and h e ae od h o t n o j ca f e o e o n
2 2009 W L 4163525 * . The def ndanthad aleady s l t e pl i t fs pr pery w hen t e 5 2 e r od h ani f ot h

26 plitffldsuiseekigdamages,decar t r , ij ncier l f icldiganor ert set an ifi et n l ao y and nu tv ei ,n u n e do dh e h ot= 27 asi e t e sal oft e pr pery. $ .The cour r ld tatt e obj c ofte Iiaton wast e t ue h h e t h ig i t h
.

2 f r clsedpr pery.1=at* . g oe o o t #. 6
5

1

Based on t e f r goi g,t e Cour fnds t att e am ounti contover y exceeds t e h oe n h ti hh n r s h

2 jrsditonalI i. I c se seekng ij nctv r l ffom af r clsur sal,hevaleofte u i ci i t n a s m i nu ie ei r e oe o e e t u h 3 pr pedyatisue i t eobec oft eIiat nf rte purosesofdet r iigt eamounti o s s h j t h ig i o h to p e m nn h n 4 contov ry.I t i mater Plitfs ar seekng t undo a non-udiilf r cosur sal i r e s n hs t , anif e io j ca o e l e e n 5 whihte pr perywass l f rapprxi at l $981,00.Becausete obectoft eIiaton ch o t od o o m ey 0 hj h ig i t
6 i worh sgniiantymor t an $75, 00,he am ounti contover yr quiem enthasbeenmet s t i fc l eh 0t n r se r
7 and t i case was pr pery r m oved. hs o le

8

Thus,heCourdenisPlitfs' int r mand.TheCourh sdieri jrsditon t t e ani moto o e t a v st u i ci y

9 over t i m ater i t at t e pari s ar di er e and t e am ount i contover y exceeds hs t nh h te e vs h n rs

1 $75, 00. 0 0
11 I. M oti n t D i m i s I ooss l2 A ur r fl d a m oton t di m is on t e gr unds t att e causes ofacton i Pl i tfs' o a ie i oss h o hh i n a n if

13 C om pl i tf it st t a cl i upon w hi h r lefcan be gr nt d .Accor i g t Aur r ,Pl i tfs a n a lo a e a m c ei ae dn o o a a n if

1 haveas ededt ocli sf rr l fagaistt( )quitiebasedonwr n f lor clsur , 4 s w am o ei e n i:1 e tt l o g u f e o e and 1 ( )viltono t edut ofgoodf ihandf ideal g.Aur r satst attes cli sf rrl f 5 2 oai f h y at ar i n o a t e h h e am o ei e l hav no basi i Nevada Iw and s oul be dimised. ( ot t Dim is ( 5)at2) I 6 e sn a hd ss M .o s s # .n
l r sponse, Pl i tff st t t at t ey have assered vald ceuses of acton agai st Aur r 7e a n is ae h h t ia i n oa

1 bec useAur r iiit daf r clsur t atS i n tc m pl wihst t Iw. ( pp' t Mott 8 a o a ntae o e o e h ' d o o y t a e a ' O n o .o d 1 Dimis ( 15)at2) I addiin,Plitf as ed tatter was a conr ctalr lt nshi 9 ss# .n to anis s h h e f ta u ea i p o
20 bet een t e padi s gi i g rse t a dut ofgood f ih and f i dealng w hi h Aur r vi l t d. w h e vn i o y at ar i c o a oae

21

A . LegalSt ndar a d

2 2

W hen c nsiern a 12( )6)moton t dimisf rf iur t sat a cli ,te cour o d ig b( i o s s o al e o t e am h t

23 m ust accept as t ue aI m at ral alegatons i t e com pl i t as wel as al r asonabl r I ei li nh an l le e

2 i f r nces t at ay be dr w n fom such al gat ns.LSO ,L d. Stoh, 4 nee hm ar li eo t V. r 205 F. d 1146,1150 3

25 ( t Ci.2000) Such al gat ns mus be c nsr ed i t e I htmostf v r bl t t e 9h r . li eo t o tu n h i g a oa e o h 2 n nmovigpary.Shwar v.UniedSt ts, F.d428, ( t Ci. 6o nt z t a e 234 3 435 9 h r2000) I gen r lte . n e a ,h 27 cour shoul onl lokt te cont nt oft e complitdurng i r vew ofa Rul 1 ( )6) t d yo o h es h an i t e i s e 2 b(
28 m oton t di m i s. The Ni t Cicui however has expanded t e cour' vi w t al w i oss nh r t , , h t eol s o
6

1 consi er ton ofdocum ent atached t t e com pl i t docum ent i cor or t d by r f r nce d ai st oh a n, s n p ae ee e

2 i t ecomplitormater ofjdiilnotce, toutc nv rigt emoton it amotonf r nh an, t s u ca i wih o et h n i no io

3 summar j dgment See Dur iqv.Fis BosonCor .815F.d 1 65, yu . nn rt t p, 2 2 1267( t Ci.1 87) 9h r 9 .
4

5 The an lsi and pur os ofa Rul 1 ( )6)moton t dim isf rf i r t sat a ay s pe e 2 b( i o s s o al e o t e u 6 cai i t t st he Igal f i ncyofa com pl it Nav ro v.Bl ck, F.d 729,732 ( t l m s o e t e sufi e c an . a r o 250 3 9h 7 Ci.2001) The c ur s oul exerie c ut n,h wev rand pr sum eagaistdimisngan r . o th d cs a i o e I o e n s si
8 aci n f rf i r t s at a cl i .See Giian v. to o a l e o t e a m u lc l Jamco Dev.Cor . 1 8 F. d 246,249 ( t p, 0 3 9h

9 Ci.1997) To av i a Rul 12( )6)dim is lt en,a c mplitdoes notneed det i d r . od e b( s s a,h o an al e
1 f ct al l gatons;r t er i m ustpl ad ' nough f ct t st t a cl i t r left ati pl usi l 0 a u al ei a h ,t e' e a s o a e am o ei h s a be

1 oni f ce. Clm ensv. m lr hoeslrCor .534 F.d1 17,1 22( t Ci. 1 ta ' e s ' Dai e c e p, 30 0 9h r2008)( uotng qi 1 BelAtantcCor . Twombl,550 U. .544,555,127 S. t 1955,167L. d.d929 ( 007) 2 l l i n v. v S C. E2 2' , 1 Ash r fv.qbal U. . ,1 9S. t 1937, 3 c ot I , S - 2 C . 1949, L. d.d868( ooglst tn tatacli 173 E 2 z t a ig h ' a m
1 has f ci lpl usi iiy when t e pl i tf pl ads f ct al 4 a a a bl t h a n if e a u cont ntt atalow s t e cour t dr w t e eh l h to a h

l r ason bl if r nc t att e def ndanti I bl f rt e micon uc al gedn. Even t ough 5e a e ne e e h h e si e o h s d t l a e ) h

1 ' et i d f cual lgat ns'ar notr quiedf ra complitt p ssmust runder1 ( )6) 6 d al a t al i ' e de eo ero an o a e 2 b(
1 consi er ton,t e f ct alalegatons ' ust be enough t r i e a rghtt r l f above t e 7 d ai h a u li m o as i o ei e h

1 specultveIv lont eassumpt ntataIt ealegatonsi tecomplitar tue( v n i 8 ai e e , h i h Ih l i n h o an e r e e f 1 doubiuli fct. Twombl,550 U. .at555.Addiinal ,he pladigshoul convic t e 9 n a l' ' v S to l t e n y d neh 2 court athef cspr viemor tan' suspiinlf aIgal cogniabl rghtofacton. L= 0 th t a t o d eh . a co o l e l y z ei i ' d. '
21 22 B . W r ngfulFor cl s ur o eo e P l i tfs'fr t cause of acton i f r w r ngf lf r cl sur . Accor i g t Pl i tfs, a n if is i so o u oe o e d n o a n if

2 al ough t ey r c ied t e r quied Nev da s at t r n tc s f ra non-udii lf r clsur 3t h h e ev h e r a t u o y o ie o j ca o e o e

2 prceedigunderNRS j1 7,80,hosenot esf i dt icidetef l wigif r atontat 4o n 00 t i al o n u h ol n no m i h c e o

2 wasr quied byt edeedoftus: 1)t eamountofte def ul'( )t eamountnec ss r t 5 er h r t( h h a t2 h , e ayo 2 cur tedef ulanda dat cedai wi i whiht cur ;( )tatit edef ulwer notcurd, 6 eh at e n t n c o e 3 h fh a t e h e
27 t e am ountdue undert e not w oul be accel r t d and t att e Tr st e woul conducta h h e d eae hh ue d

2 f r cosur s l;and ( ) Plitf'rght t have enf rement of te s curt itr st 8 o e l e ae 4 anis i o f oc h e iy ne e
7

1 di c ntnued at any tm e bef r 5 day pror t t e sal dat i t ey w er t m eet c dai so i i oe s i oh e efh eo en 2 condii ns. Based on t es al ged notfcaton f i r s, Pl i t f as ed t att er wer tz o hel e ii i a l e u a n is s f h he e
3 subst ntalir gul rtes i t e f r cl sur pr ceedi gs and t e sal oft ei pr pedy shoul a i re a ii n h o e o e o n h e hro d 4 be vac t d. e 5 I is m oton, Aur r ar ues t att e cl i ofw r ngf lf r cl sur m ustbe di m ised nt i oa g h h am o u oe o e ss

6 because t e f r cl sur pr ceedi gs w er pr per under Nevada I w . Alhough Pl i tfs h oe o e o n eo a t a n if

7 al ge a v ret of pur oded eror ,Aur r st t s t at Q ual y and i agent s bst ntal l e aiy p rs o a ae h i t t s u a il y

8 c m pl d wih Nevada' n n-udii l or cosur s at t . Accor i g t Aur r ,al ough t e oi et s o j ca f e l e t u e dn o o a t h h
9 deed oftustr quied t atcerai i f r aton be pr vi ed t Pl i tfs,i di notr quie t at rerh t n no m i o d o a n if t d e rh

I such i f r aton be r c r ed wi t e not e ofdef ul.Aur r st t s t at ' l i tfs hav not 0 no m i eod th h i c at o a a e h P a n if e
11 aleged t atAur r nevergave t em 1 e notce caled f ri ...t e deed oftust onl t ati l h oa h h i l on h r , yh t

1 was noti t e r c r ed notc ofdef ul. L=. 4- . 2 n h e od ie a t' d at 5 '
1 3 I addii n,Aur r s at s t atev n i Pl i tfs wer c r ec t at t er had been a n to oa t e h e f a n if e or t h h e
1 f iur t com pl w ih t e r quiem ent oft e deed oftust ' evada I w does notm ake a sal 4 al e o ythe r sh r ,N a e

1 i pr perbased onsucha volton. !- at5.Rat er Aur r sat stati Neva a, sal 5mo i ai ' #. ' h , oa t e h n da e
16 m ay onl be setasi e f rf iur t subst ntaly com pl wih st t t r r quiem ent . Aur r y d o al e o a il y t a uo y e r s oa

l st t s t att i cl i shoul be di m i sed bec use t e Com pl i tdoes notr i e any vi bl 7 a e h hs am d ss a h an as ae

1 is e r g r igc m pinc wi NRS j 1 7.8 -h n nu iilo e ls r sa uea is e 8 s u s e a dn o l e t a h 0 0 0 te o jdca f r co u e t tt ts u
19 i t i m ater n hs t.

20

I r spon e, Pl i tfs as er t at Def n ant wer r quie t f l w t e Nevada ne s a n if s t h ed s e e rd o ol h o

21 sat t r s heme f rnon-udiilf rclsur pr ceedigs. Plitf stt t at'i i a t uoy c o j ca o e o e o n anis ae h 'l s f lt
22 cor er t ne of Nevada I w t at a hom eow nerbe gi en a r asonabl opporuniy t cur a n so ah v e e t to e

23 def ul be or a hom e i t ken a ayi how ever i t i case,Pl i tfs assed t att e notce at fe sa w' ' ,n hs a n if hh i
24 25

aygrph2 i t ede doftus o t epr pe t p ovie t a telnde $s algi en tcet r a 2 n h e r t n h o ry r d d h t h e r .h l v o i o 2 Borore pnort a c lr ton f lo i g Boro e ' br a h ofa y co e a to a r e e ti t i 6 rr o c ee ai g l w n r w rs e c n v n n r ge m n n hs

2P

Se u t l snm e t, ( ott Dlmis(5)a Ex. p.1 .Thenoies alse iy ()tedea l, c n y n tz n . M .o s s # t A, 3) s tc h l p cf:a h fut . 2 ( )t ea to r q ie t qlet edea l;( )ad t,n tls t a 3 d ysfom te c t t enotc i 7 b h c in e u r d o tr h fu t c a e o e s h n 0 a z h l e h ie s a gve t Bo r wm'by whlh t eds a l mus beg le ;a d ( )t a f it et c r t edea l o or i n o ro , c h f ut t trd n d h t alt o u e h fu t n r
28 bef r t e dat s e i i d i t e notce m ay r s l l a c l m ton oft e s m s s ctr d by t i Securt oe h e p c fe n h l e u t n c ee i hu e te hs iy I t r stand s l oft e Pr pery. Jz Thede d do sn t p cf ho t i no iei t begi e . n ee ae h o t # e e o s e iy w h s tc s o vn
.

8

1 ofbrac andelct nt s ldi notdpeciyt eamountneededt r isat t eIan. ( pp' eh e i o el d d f h o s o en t e h o ' O n ' 2 t Mot t Dimis( 15)at4) Becaus idi notspeci t atamount Plitf ass r t at o .o s s # . et d fh y , an is e t h f 3 t ey Icked notce ort e opporuniy t cur underNRS j 1 7.80. I addiin,Plitfs ha i h tto e 00 n to an i
4 ar ue t att e ' otce oft ust e sal w as accom pani d by so m uch extaneous m at ralas g h hdi n re e e r ei o t ru l n e '# 5 t m ake i vit aly m eani gl ss. !.at8.Ac origt Plitfs, i s nthem 'o muc c dn o an if Qualy e t ' t s h
.

6 paper or 'w ih r spectt t e f r cl sur t atdhey coul notm ake heads nort is ofi'and w k' t e o h oe o e h ' t d al t

7 t atiwast ntmountt So not e ataI' J= ht aa o' n i c l' #. .
8 I t i case,Pl i tfs have f i d t st t a cl i f rw r ngf lf r cl sur . I t e n hs a n if al o a e e am o o u oe o e n h

9 C om pl i t A ur r i n ti ent i d orm entoned i t atcause ofac i n. Rat er t e c us of a n , o a s o d ie f i nh to h ,h a e 1 ac i n appear t be diec ed sol l atQ ual y. Pl i tfs r peat dl s at t at Def ndant 0 to so rt ey i t a n if e e y teh e 1 Q ual y f i d t pr vi e t e i f r at n r quied by t e deed o tustand speci c l t att e l i al o o d h no m i e r te o h fr f al h h iy

1 notceofdef ulandelcint sel' r par dandfedbyQualf f i dt c nti teal ged 2 i at e to o l' e e p i l i al o o an h l te e 1 nec s ar if r at n.( om pl( 1)atEx. 1llemphasi added) TheComplit 3 e s y no m i C o .# A, t s . an doesnot
1 asser t atAur r f ied t m ake t e necessar di cl sur s ort atA ur r was i vol ed i t e 4 th o a al o h y so e h oa n v nh

1 pr par ton and fl g of t e n tc of def ul Bec use Pl i tfs f i t ass r any f c ual 5 e ai in i h o ie at . a a n if a l o et at 1 al gatons agai st or as t w r ngf lor cl sur , hi cl i i di m i s d pur uantt Rul 6li e n Aur a o o u f e o e t s a m s s s e s oe

1 1 ( )6) 7 2b ( .
1 8 l addion, b sed on t e al gat ns i t e Com pl it and t e s at t r notces n t i a h li e o nh an h t uo y i
1 r cor ed wih t e W ashoe Count Recor ers ofi e,t e Courtfnds t at t e f r cl sur 9ed th y d ' fc h i h h oe o e

2 pr cedur i t i c s c mpl dwi NRS ï 107.80. 0o e n hs a e o i t eh 03
21 Nevada I w pr vi es t ata deed oftusti an i st um entt atm ay be used t u ecur a od h rs nr h os e

2 t e peror ance ofan obl at n ort e p ymen o any debt' NRS 5 107.20. W hen a 2h fm ii go ha tf . ' 0
23 debt rdef uls't e cr diorbenefci r m ay r sod t is securt i a t ust e' sal as a m eans o ath et i ay e ot iy n r e s e

24 ofs tsfigte debtrsobl aton.NRS j 107.80. a i yn h o' i i g 0
25

26

of t e com pl l t, t e c ur may al o consder docum ent atached t t e com pl i t docum ent h a n ,, h o t s i st oh an s

3Alhozhac ur'rve o a1 1)6 moto t dim isi ge eal :i ie t tec ne t t tg o ts e iw n 2 4) in o s s s n rly tm td o h o tns f

27 i c r ol tdbyr fr nc i t ec m pli k o m a tr of u i il iewiho tc nve t gt emoto n op - e a ee e e n h o an r te s j d c a notc t u o ri h n in it amoinfrsmmayj dg e t Se t lnn:v. ls Boso Co .81 1.d1 65, 267(t C'. no to o u r u m n. e hr i F' t tn m , 5 72 2 1 9h l r r 28 1 8 ) Thesa to. notc sa erf r nc diltl co pli t 9 7. ttt l le r ee e e r le m an . ty
9

1

The pr c dur f rc nduc i g a t us ee' f r cl sur s l i Nevada i s tf rh i NRS oe eo o tn r t s o e o e ae n s e ol n

2 j107.80.Thef r clsur pr cessi commenc dbyt er c r igofanotc ofbr achand 0 oe o e o s e h e odn ie e

3 4 5 6 7

elctont s lbyte tusee. NRS j 107.80( )c) Afert enotc ofdef uli rcored, e i o el h r t 0 2( . t h ie a ts e d tetuseemust ttr e monhs.NRS 1 1 7.80( )d) Thetuseemus tengienot e h rt wai h e t O 0 2( . rt th vi c oft etme and plceofte s l .NRS â 1 7.80( ) hi a h ae 0 0 4. N RS j 107. 80( ) pr vi es t at t e notce of def ul and elct n t s l mus 0 3 od h h i at e i o el o t 'dl sc i e t e de i i ncy i peror ance orp ym entand may cont i a notc ofi t ntt d e rb h fce l n fm a an ie n e o

8 decl r t e entr unpai bal nce due i accel r ton i per it d by t e obl aton secur d by ae h ie da f e a i s m te h ii g e

9 te deed oftust ... NRS j 107.80( )a) I addion,i te pr pedy i a r siental h r. ' O 3( . n t fh o i s ed i
10 f r cl sur ,t e notce ofdef ul and el cton t sel m ustcom pl w ih t e pr vi i ns ofNRS oe o e h i at ei o l y t h o so

1 j 107.87. NRS j 1 7.80( )b) NRS 5 107.87 pr vies t ata notce ofdef ul and 1 0 0 0 3( . 0 od h i at
1 el cton t sel m usti cl de t e physi aladdr ss oft e pr pery and t e cont cti f r aton 2 ei o l nu h c e h ot h a no m i 1 of t e t ust e or t e per on conductng t e f r cl sur w ho i aut orzed t pr vi e 3 h re h s i h oe o e s hi o od

1 if r atonr ltngt tef r clsur st tsoft e pr pedy.NRS : 107.87( )b) 4 no m i eai o h o e o e a u ho 0 1( . 1 5 Fial ,NRS â 107.80( )sat st ata 'al made puruantt t i secton maybe nl y 0 5 te h 'e s s o hs i
1 decl r d v i by any cour ofcom pet nt ursdit n i t e count wher t e s l t okpl ce' 6 a e od t e j i ci n h o y e h ae o a'
l7 i t e 'r st e orot erper on aut orzed t m ake t e sal does notsubst ntaly com pl wih f h tu e h s hi o h e a il yt 18 t e pr vi i ns oft i secton....' h o so hs i ' 19 H er ,Pl i tfs asser t att e f r cl sur sal shoul be decl r d voi because t e e a n if th h o e o e e d ae d h

20 notce of def ul and el cton t sel di n t cont i i f r at n r quied i t e notce i at ei o ldo an n o m i e r n h o i
21 pr vi i ns oft e deed oftust Speciiz ly,Pl i tfs alege t att e 'aiur t adher t t e o so h r. fc l a n if l h h d leo f eoh 22 notce pr vi i ns cont i ed i t e deed oft ust' i o so an n h r 'constt t d a subst ntalir gul rt f rw hi h iu e a i r e a iy o c 23 t e f r cl sur sal shoul be vacat d. h oe o e e d e 24 l t i mater t e Courtgr nt Aur r ' m oton t di m i s t e w r ngf lf r cl sur n hs t ,h as o as i ossh o u oe o e

25 cl i bec use t e al gatons i Pl i t f ' am a hli e n a n i s Com pl i tf it est bl h t atDef ndant di not f an alo a i h s e sd

26 c m pl wihte rquiemensofNRS 55 107.80and 1 7.87 i conducigt ef r clsur o y th e r t 0 00 n tn h o e o e
27 sal on t e pr pery.Alhough t e deed oftustm ay have i cl ded notce pr vi i ns f low i g e hot t h r nu i o so o l n

28 a def ul, ada s at t r I w does n t equie t att ose notce pr vi i ns be i cl ded i t e a t Nev t uo y a or r h h i o so nu nh
10

l notce ofdef ul fl d wih t e count r cor er. Pl i tfs ar ue t atbecause t e notce of i a t ie th ye d a n if g h h i

2 def ul di n ti cl de t e am ountPl i t s m ust t cur t e def ul, he notce was f t l atdonu h an i l pay o e h a tt i a al y
3 m i l adi g and noti subst ntalcom plance w ih Nevada I w . However Nevada I w does se n n ai i t a , a

4 notr quie t att e am ountt cur t e def ul be r cor ed wih t e notce ofdef ul. Rat er e rh h o eh at e d th i at h,
5 N evada I w r quies t att e notce ofdef ul cont i t e physi al aerhh i at an h c addr ss oft e pr pery and e hot 6 t e cont cti f r aton oft e tust e orper on conductng t e f r cl sur w ho i aut orzed h a no m i hre s i h oe o e s hi

7 t pr vi e if r aton r l tng t t e f r clsur st t s of t e pr p ry. See NRS j o o d no m i eai o h o e o e a u h o et

g 107.87( )b) 0 1( .
9 Thus,because t e f r cl sur pr ceedi g on Pl i tfs' opery com pled wih Nevada h oe o e o n a n if pr t i t

1 l w , her i no gr unds t v c t t e sal oft e pr pery, Aur r ' m oton t di m i s t e 0 a t es o o a ae h e h o t and o as i ossh
11 w r ngfulf r cl sur cl i i gr nt d . o o e o e am s a e 1 2 C . Dut ofG oo d Faih and Fai Dealng y t r i

1 3

Pl i tfs' e ass red a c use of ton f rvi l ton oft e dut o good f ih an f i a n if hav et a ac i o o a i h yf at d a r

1 dealng agai stAur r . Accor i g t Pl i tlsI Aur r w as t e ser i eroft ei morgage and 4 i n oa dn o ani oa h vc hr t

1 di assum i g t e dutes as s r ieroft e n t and en or eroft e deed oftust Aur r 5 ln l nh i e vc h oe fc h r , oa
1 ass m ed any and aIoft e dutes and obl at ns t atr n bet een t e Pl i tfs and M agnus 6 u Ih i ii h a go w h a n if

l (he orgialInder,when t ose document wer ex c t d. ( ompl( 1)atEx.A,14) 7 t in e ) h s e e ue ' C ' .# .
1 P l i t#s st t t ati 2009,Pl i tfs f un i dif ul t m ak t ei m odgage p ym ent an 8 ani ae h n a n if o d t fi t o c eh r a sd
19 ent r d dnt l ngt y negotatons t have t e am ountr duced so t ey coul afor i,whi h ee ' o e h i ii o h e h d fdt c

20 i v l ed t e tansm isi n ofl r e am ount of n ov h r so ag s paper or bac and f rh bet een t e pari s. wk k ot w h te ' '

21 $ . 11.Plitfsar uet atAur r di not i goodf ihdurngtemodiiatonpr cess, = at a nif g h o a d actn at i h fc i o
.

2 and t at Aur r f i d do m odi t e l an i s ch a way as t m ak i a'or abl f r t e 2 h o a al ' et fho y nu o et d eo h

2 Plitfs. J=.Bas dontef r goig, aitfsal get atAur r i I bl f rbr achigt e 3 an if ' # ' e h o e n Pl nif l h e oa si e o e n h a
24 covenantofgood f ih and f i dealng . at ar i 25 A ur r movest di m i s t i cause ofacton on t e gr unds t att er ' as no contact oa o s s hs i ho h h ed w r

26 t whihAur r and ( lit flwer bot paris. ( ott Dim is( 5)at7) Aur r sat s oc oa P anis e h t ' M .o s s # f e' . oa t e
27 t atPi i t s i corec l asser t atas t e l an s r i er Aur r ass m ed aI oft e l nders h a n i n r ty f th ho e vc , o a u l he ' 28 dut s. Aur r s at s t ati i r l as ser i er i w as m er l peror i g t e adm i i tatve i e o a t e h n t oe s vc ,t ey f m n h nsr i
11

l f ncton ofr c i i g paym en s f om Pl i tfs. I di notac uie t e I an fom i orgi at r ui e evn tr a n if t d q r h o r t i n o. s 2 S u h a r l tonshi ,acc r i g t Aur r i notcontact ali nat r . Because t er w as no c ea i p o dn o o a s r u n ue he 3 underyi g c ntact a lr l tonshi ,Aur r st t s t at i c nnot be I bl f r br achi g t e l n o r u ea i p oa ae h t a i eo e a nh 4 i pl d c v nantofgood f i and f i dealng. I addii n, ur r st t s t atPl i t f have m i oe e at h ar i n to A o a a e h a nis f
5 f ied t st t a cl i f rbr ach oft e i pl d covenantbecause Pl i tff r ceied ever t i g al o a e a m o e hmi e an is e v yh n

6 t eywer entt d t un ert e Ian agr em ent-speciial ,money t pur hase t e subect h e il o d h o e e fc l y oc h j

7 pr pery. !.at7.Aur r sat st atiwas Plitfst atbrachedanyal ged contacual ot# . oa t e h t an i h e f l e rt
.

8 agr em ent e when t eyst p pay ng t ei m orgage.As such, or s at s l at hi c af m ust h o i hr t Aur a t e h t s l m
9 be di m i sed. ss

1 0
11

dti w el est bl hed w i i Nevada t atever c ntacti pos s upon t e contac i g 's l a i l s tn h h yo r m e h r tn
pari s t e dut ofgood f ih and f i dealng . Hit n Hot l Cor .v.But h Lew i Pr d . I c. te h y at ar i ' lo ' es o c s o ,n ,

l 1 9 Nev.1043,1046,862 P.d 1 07 ( ev.1993) ' henone p dy peror sa c ntacti 20 22 N .' W a fm or n 1 a mannert ati unf ihf lo t e pur ose oft e c ntactand t e j s iid expect tons oft e 3 h s at u t h p h or h u tfe ai h
1 ot erpary ar t us deni d: dam ages m ay be a ar ed agai stt e pary w ho does notac i 4 h t eh e wd nh t tn l good f ih. Hi on Ho el Cor s. Bu ch Lewi Pr ds. l c. 1 7 Nev. 5 at ' l 't t s p v. t s o ,n , 0 226, 232, 808 P. d 91 2 9

1 ( ev.1991) A br achoft e covenantoc ur 'wj er t et r sofa c ntactar Ier l 6N . e h c s ' h e h em I or e i al ty
1 c m pl d w i bu one padyt t e c ntactdel er t l contavenest e i t nt n and spii of 7oi ett h oh o r i aey b r h ne i o rt

l tecontac . .'!=at922- 3. l Nev da, yaparyt acontac c nbeI bl f rbr ach 8h r t . . #. 2 n a onl to r ta i eo e a
h y at ar i 1 oft e dut ofgood f ih and f i dealng. See 4. 9 #
.

20

A s not d i t e f r goi g,Pl i tfs asser t atA ur r ,as t ei I an ser i er assum ed e n h oe n a n if th oa h ro vc ,

21 t e dutes of t e l nder under t e deed of tus . How ever cours have h l t at a I an h i he h rt , l ed h o 22 ser i er such as Aur r , s nota pary t t e deed oft us . See Conderv.Hom e Sav. Am . vc , oa i toh rt of '

23 68O F. upp.d 1168,1174 ( . . .2010) s e alo Ruf v. ' Seriiq Co.2008W L S2 C D Cal , .e s f Am. s vcn ,

2 1 30182( . .Pa. 48 WD zoo8lholigt ataser ieri ' otaparyt temorgager.Mor ov r t dn h vc s n t oh t) e e,
25 t e f c t at ur r ser i ed Pl i t fs I an does notc eat contact al i i bet een Aur r h a t h A o a vc ani' o f re r u prv t w y oa

26 andte Plitfs.Lomb vv. h an if o SCME Morc. t Banker , s 2009W L1457738* ( . .Cal2009) 5 ND . .
27 I t i m ater because Pf itfs have f ied t est bfsh t att er was an underyi g n hs t, a n if al o a i h h e ln

28 contac ualr l tonshi bet een Pl i tfs and Aur r , or c nnot as a m aterofl w ,be r t ea i pw a n if o a Aur a a , t a
1 2

1 l bp f rv ol ton oft e c v nantofgood f ih and f i deal g. l addi on,Pl i tfs h ve i e o i ai a h oe at ar i nn t i a n if a
2 f i d t asser t atany underyi g contacti cl ded a rghtt m odii aton. I t i r gar , al o e th ln r nu io fc i n hs e d 3 Pl i tfs assed t atAur r contavened t e i t nton and spii oft e contactby f ii g t a n if h oa r h ne i rt h r a ln o

4 negotaton a m odii at n on t ei I an. Because t er w as no cont ac ual rght t ii fc i o h ro he rt i o
5 m odii aton,Pl i tfs have f ied t est blsh t atAur r act d i a mannerunf ihf lt t e fc i a n if al o a i h oa e n at u o h
6 contact As such,t i cl i i di m ised. r. hs a m s s s 7 D . Leave to A m end

8

A tor lar um ent Pl i tf s r quest d I ave t am end t ei Com pl i ti or ert st t ag , a n if e ee o hr a n n d o ae

9 a cl i f rbeach of am o contac bas d on a pari i aton agr em ent er d i t under he Hom e rt e tp i c e ent e n o t
1 A for abl M odii aton Pr gr m bet een Aur r and t e f der l gover m ent I t ei 0 fd e fc i oa w oa hea n .nhr

1 opposii n t Aur r ' m oton t di m i s, ai tfs st t t atAur r r c i ed m oney fom t e 1 to o o as i o s s Pl n if a e h o a e ev rh

1 f der lgov r m entundert e Home Afor abl Modic ton Pr grm . ( pp' t Mot t 2ea en h fd e f ai i oa O n o .o 1 Dimis( 15)at7) Ac origt Plitfs, t rt kngfder l 3 ss# . c dn o an if afe a i e a money' ur r di notI eup d oa d A i v
1 t is obl atons undert i agr em ent and i doi g so br ached i obl at n ofgood f ih 4 ot ii g hs e , nn e t s ii go at

1 and f i deal g. J=. 8. 5 a r i ' # at n
16 I r sponse,Aur r st t s t atPl i tfs have no rghtt sue f rbr ach ofcont acton ne oa ae h a n if io oe r

1 t ei pari i at n agr em ent under t e Hom e Afor abl M odiiat n Pr gr m . Aur r 7 h r tc p i o e h fd e fc i o oa oa 1 c ncedes t at i i a pari i ant i t e f der lpr gr m ; how ever Aur r st t s t at an 8o h ts tp c nh e a o a , oa ae h y
l obl atons i has under t at pr gr m ar t t e ot er contactng pary - t e f der l 9 ii g t h oa eoh h ri t hea

20 gover m ent ( epl ( 1 ) 6) Acc r igt Aur r , aitfsu r n tnt ndedbenefcires n . R y # 8 at . o dn o o a Pl n if a e o i e iai
2l of t e agr em ent r t er t ey ar i ci ent l benefci res w i no rght t enf r e t e h e ; ah h end a ia i t h i so oc h

2 agr em ent' J= 2 e . #. 2 3 Un erRul 1 .lav t amendshalbefeel gienwhenjstc s r quies.Fed.R. d e 5 e eo l ryv u ie o e r

24 Ci.P.1 ( ) ' hi pol yi t beappl dwihexr me l er ly. EmienceCaoi lLLC v. v 5a . ' s i s o T c i t te i ai ' n e b t' t, a 2 Asn on,Ic. 316 F.d 1 48,1 51 ( t Ci.zoo3lit r alquotton mars and ci ton 5 e n, 30 0 9h r tne n ai k ti a

2 omied) Howev r a dititcour maydeny Iave t amend ' henamendmentwoul be 6 t. t e , src t e o w d 27 f tl, u i wheniwoul caus undueprj diet tedef ndantor h nii soughti badf ih. e td e eu c o h e , w e ts n at ' ' 28 Ventessv.J panAil es,603 F.d676,680 ( t Ci. r a ri n 3 9 h r 2010) .
13

l

l t i case,t e Cour deni s Pl i tss'r questf rI ave t am end on t e gr und t at n hs h t e ani e oe o ho h

2 such am endm en w oul be f ti . I Es ob do v. t d ui n c e e Countvw i e Hom e Loans,I c. t e di ti t rd n , h s rc
3 courtaddr ssed t e i sue ofw het er a hom eow nercoul sue f r br ach ofcontacton a e hs h d oe r 4 pari i aton agr em entundert e Hom e Afor abl M odii aton Pr gr m .2009 W L 4981618 lc p i e h fd e fc i oa

5 ( . .Cal 2009) Th plitf i tatcaseatemptd t sueont e pariiaton agr em en SD . . e an ifn h t eo h tp i c e t 6 asa t id- arybenefcir.J.at* . Countywie ar ued tatt e plitf Ic ed sandig hr p t iay # 2 rd g h h anifa k t n 7 t sue b causehewasnotanit n edt id- arybenefcar.J- Thedititc ur agr ed o e ne d hr p t ii y #u sr o t e c
8 w ih Countywie.Acc r i g t t atcoud,'l su asa t id- ary benefcir ofa contact t rd o dn o h 'to e l hr p t iay r,
9 t e t id part m ustshow t at t e contactr fect t e expr ss or i pl d i t nton of t e h hr y hh r el s h e m i ne i e h te o h ro i h hr t'#( i a h 1 pa ri s t t e contactt beneftt e t id pary. ! .quotng Klmat W at rUser Prt ctv 0 = e s o e ie 1 Ass' v.Pateron,2O4 F.d 1206,1 11( t Ci.2000).' n wayt asc rai suchit nt l n ts 3 2 9h r )' e O o et n ne
.

1 i t askw het ert e b nefcar w oul be r as nabl i r l i g on t e pr m i e as m aniestng 2 so h h e ii y d eo e n e yn h os fi
ne i o e i m . #.ct 1 an i t nton t conf ra rghton hi orher' !- ( ing Resat m en j 3O2( )b)cmtd..I 3 i te t 1( .)n
.

1 Esc bedo,t e c ur not d t att e Nit Cicui cautons t at'pq ri s t atbeneftfom a 4 o h o t e h h nh r t i h l a t h e ir
15 gover m ent contact ar gener ly assum ed t be i ci ent l benefci res, and may not n r e al o nd a i ai 16 enf r e t e contactabsenta cl ari t ntt t e contar ....G over m ent contact ofen oc h r e ne o h ry n rst 17 beneftt e publc,buti di i ualm em ber oft e publc ar t eat d as i ci ent lbenefci res ih i n vd sh i er e nd a ia i

e fe e n e i s fe' 1 unl ss a dif r nt it nton i m aniest d.4 Escobedo, 2009 W L 4981618 * ( uotng 8 2q i 1 Klmat ,204 F.dat1211). 9ah 3 )
20 T he cour hel t att e padi i aton agr em entati sue was ent r d 'nt i par f rt e t dh h cp i e s e e i o n to h

2l beneft of qual i d bor ow er and w i t ese b row er i m i d. Es obe o, 2009 W L i ie f r s th h or sn n ' 'cd 22 498161 *2.'- w ever t e I nguage o t e contac does notshow t att e pari s i t nded 8 Il lo ,h a fh rt hh t ne e

23 t gr ntqualidborower te rghtt enf reteAgr ement'1- 'ndeed,heAgr em ent oa ie r s h i o o c h f e . #.' 'I t e
2 spec fes t at i ' hal i ur t t e beneft of . . .t e pari s t t e A g eem ent and t ei 4 ii h t s l n e o h i h t oh e r hr
25

1nKl mah,h Ni t Cic ihedt a atoug ac nta t ewe nt eUnie Stt sa dada I a t te n h r u t l h t lh h o rc b t e h td ae n m o e aoropqa q t te irg tq 'be etta d was'nd u tdy e tr d it wih t e iryao si p rt rt d o h ria o s n i n u o b e l n e e n o t h ri tr n 27 mmd, not lg m tec nta te m c da i tn in oftl pa te t t ec n n c t p'ntt el i atr ' hn h o r c v e n n e to le ri s o h o ta t o a h n g o s e f r e bl nght. Klm al 2 4 F.d a 1 11 1 . The Ni t Cic i e g an d,to al w t e noca e s a tu 0 3 t 2 - 2 n h r u t x l ie û lo h m t 28 i t n e tid pa t be ef i r sauswoul o e t e d ort a 1us r r c w ig abene tfom te n e d d h r - ry n c a y tt d p n h o o 1 es e e n fr h

2 6

Prj c bya hivigsmia saus ars lno mtnde byteCo ta t .=a 1 1 . o et c e n i lr tt , eut t e d h nrc.J .t 2 2 #
1 4

m te si i e .'# ' l per it d successor -n-nt rest,!.Thus,hecourf undt atheborower wer icient l t to ht r s en d a
.

2 benefci res of t e pari i aton agr em entand do not have enf r eabl rght undert e i ai h tc p i e oc ei s h

3 c ntac.J= o r t #.
4 I Benio v.I dvm ac.M orq.Ser i es, he Nevada di ti tcour agr ed w ih t e hol i g n t n l vc t s rc te th dn

5 i Esc bar 2010 W L 2130648 * ( . ev.2010) l t atc s ,te c ud satd t atte no. 7 DN . n h ae h o te h h
6 pl i tfs had noti entfed anyt i g i t e Hom e Afor abl M odii aton Pr gr m contact a n if d ii hn n h fd e fc i oa r

7 d hih clary ex r s es a pr m is r i t ntt beneftborower . J=.Rat er acc r ig t ' c e l pes w o s o y ne o i r s' # ' h ' odn o
8 t atcour,dhe HA M P contactcont i s a pr vi i n st tng t att e S gr em entshal i ur t h t' t r an o so a i h h A e ln e o 9 t e beneft of and be bi di g upon t e pari s t t e Agr em ent and t ei per it d h i nn h le o h e hr m te
s i i e e .' -The o to ' 1 successor -n-nt r st' @. c urf undisinic nttatted gr ementn wher stts 0 t g fa h h ' e i A o e ae
.

11 t at i gies bor ow er any rght or ot er i e expr ssl i t nds t conf r t id pady h tv r s is h ws e y ne o e hr

1 benefcar s at s on borower . J= 2 ii y t u r s' #. '
1 3 The agr em entati sue i t i tase cont i s a si i rcl use. I pr vi es t at ' he e s n hs z an ml a a t o d h :' T
l A gr em entshal i ur t t e beneftofand be bi di g upon t e pari s t t e Agr em entand 4 e ln e o h i nn h te o h e

1 tei per itd suc essor-n-nt r st' ( ee SerierPariiaton Agr ementat! 11. , 5 h r m te c si i ee . S ' vc tcp i e 1E l atach dasEx. t Opp' t Mott Dim is(/ 5).Si i rt Beni ,t eagr ementdoes 6 te 2o n o .o s s /1 ) m l o a th o e
17 notgi e borow er any rght orconf rt id pady benefci r st t s on t em . v r s is e hr ia y au h 18 Based on t e f r goi g,t e Coud deni s Pl i tfs'r questt am end t i cl de a h oe n h e a n ir e o on u

1 br ach ofcontactcl i undert e Hom e Afor abl Modii aton Pr gr m .The Cour agr es 9 e r am h fd e fc i oa te 20 w ih t e concl si ns r ached by t e cours i Escobar and Benio t att e I nguage oft e th uo e h tn th ha h 21 agr em entdoes notconf rt id pady benefci r st t s on borow er . See alo Burzos v. e e hr i ay au r s s t

2 Counr ie Home L an ,2010 W L 2196068 * ( . .Calzol lholig t atb rower 2 tm d os 2 SD . o t dn h o r s 2 Ickedsandigt sue franal ged br achofas rieragr em ent;Kamnv. or Loan 3a t no o l e e e vc e l Aur a 2 Series,2009 W L 3177636 * ( . . aI2009) Vil v.W el Famo Bank,N. .2010 W L 4 vc 4 CDC ,l .a l s A,

25 935680 * ( . . aI zololadopigt e r asonig setf lh i Esc bedo) Thu ,Plitf' 3 SDC . t tn h e n o' n o t . s an is f
26 r questt am end i deni d. e o s e

27 11 Cedii aton ofQues i n t t e Nevada Supr m e Cour 1. fc i to o h e t
28 Pl i tff have fl d a m oton t ceriy a queston t t e Nevada Supr m e C oud. ani s ie io tf i oh e
15

1 Sp ci c l , Pl i tfs r ques t at t i Cour as t e Nevada Supr m e Cour f r i e f al i y a n if e t h hs t kh e to t s

2 it r rt t n ofte t r 'ubsantalcompl nc 'underNRS 1 7.80( )a)2) ( ot t n e p e ai o h em s t i ie a 0 0 5( ( . M .o 3 Ceri Queston( 20)at4) Acc r igt Plitfs,teyhav al ged'hatQualy' f i r ty f i# . o dn o an if h el ed t i s al e t u
4 t speciyt e am ountoft e def ul i paym entand t e tm e whi h t atdef ul may be cur d , o fh h a tn hi ch at e

5 r nder inoti ' ubs antal pl nce' t Nev da Iw an t usf t l def c ie. L=. 3. e s t n s t i com i a wih a a d h a a l e tv ' d at y '
6 P l i t f s at t att i i sue has notbeen addr ssed byt e Nevada Supr m e Cour,' nd i a n is t e h hs s f e h e t' t a
7 i f r t i r ason t att i coud shoul cediy t e m atert t e Nevada Supr m e Courtf r s o hs e h hs d fh t oh e o

8 rsolton,r t ertandeciigt e materdiecl. 1. e ui ah h dn h t r ty' #. '
9 I r sponse,Q ualy ar ues t att er i no i sue whi h needs t be cerii d t t e ne ig t h h es s c o tfe o h

1 Nev daSupr meCour.( pp' t Mott CeriyQuesin( 21)at3) Acc r igt Qualy, 0 a e t O n o .o t f to # . o dn o i t
11 t e ' ubst ntalcom plance' I nguage i cl arand does notr quie t ata f r cl si g pary hs ai i 'a se e rh oe o n t

1 speci a r istt m entfgur i t enot e ofdef ul.J2 f en a e y i enh i c a t #.
1 3 1 4 U ndert e Nevada Rul s ofA ppel t Pr cedur : h e le o a e The Supr m e Cour m ay an w erques i ns ofI w cerii d t i by t e Supr m e e t s to a te ot h f e

Cour oft e Uni d St t s,a Cour ofAppeal oft e Uni d St t s oro t e th t e ae t sh t e ay fh

1 5 l 6
1 7
1N 8

Ditito Cou ba,a Untd Stts Ditc Cout ora Untd Stts sr f lm i c i e ae sj t r, l e ae Bank upt y Cojr when r quesed by t e cerlyig c ur i t er ar i v le rc t e t h t n o t f h e e n ov d f i an poq e lgb f r to ec u t q e t nso lw o tisaewhc may n y r e dn eo e h s o rs u si fa ihs tt ih o
be det r latve oft e caqse t en pen i g i t e c riyng cour and as t em n i h h dn n h e t i f t o
w hi h i appear t t e cerlyi g cour t er i no c ntolng pr cedenti t e ct soh tn f th e s o rl i e nh deci i ns oft e Supr m e Cour oft i s at . so h e t hs t e

ev.R. App.P.5( ) A fder l our maydecde nott ceri aquestont asat supr me a. e a c t i o ty f i o te e

1 coud w her i woul be i efi i n and uneconom i al See l r Sulv n,2O0 B. .682,685 9 et d n fc e t c. ne la i R

20 ( ank D. ev.1 96) l Nevada,c riiaton i gr nt dite answermaybedet r iat e B rN 9 .n e t c i s a e fh f em n i v
.

21 ofpar oft e f der l t h e a case,t er i no contoli g Nevada pr cedent and t e answerwilhel h es r ln e , h lp

22 s tl i podantques i n ofI w . Vol o Car o N . m . I c. Ri c ,122 Nev.746,750- 1, e te m to s a v s f A , n v. c i 5 23 137 P
.

3d 1161( ev.2006) N .

24

I t i m ater t e Cour deni s Pl i tfs, r ques f r cedi caton. The s at t r n hs t ,h t e an i e f to fi i t uo y

25 I ngua e pr vd di NRS 107.8 i suf inl ce ror a g o ie n 0 0 s fi e t la f coudst appl.NRS 5107.80( ) cy oy 05
26 pr vi es t ata u al m ade pur uantt t i sec i n m ay be decl r d v i by any c ur of od h se s o hs to a e od ot
:, 27 l'

compet ntjrs itoni t ecounywher te s l t okplce,it e;r seeorot erperon e u idci n h t e h ae o a fh ( u t t h s

28 aut orzed t m ake t e sal does notsubst ntal com pl wih t e pr vi i ns oft i secton. hi o h e a il y y th o so hs i 1 6

l

...

' NRS ï 1 7.8O( )emphass added) Asnotd by t e i l ied Inguage,te t r ' O O 5( i . e h t iz a ac h em

2 d ubsantalcompl nce'r ltst te r quiement setf ri NRS â 107.80. I t i ca e, ' ti s i 'ea e o h e r a s on 0 n hs es 3 t e Coud f undt atDef ndant compl dwi te pr viinso NRS 5 107.80 durngt e h o h e s i t h o so f eh 0 ih

4 non-udiilf r clsur pr ceedigs. Thus,ceriiat n t te Nev da Supr me Cour i j ca o e o e o n tc i o h fo a e ts
5 unnecessar t det r i e t e m ert oft i acton. yo em n h is h s i
6 I . M oton t Enl r e Ti e V io ag m

7

Fi aly,Pl i tfs fl d a m oton t enl r e tm e seeki g an ext nsi n w ihi w hi h t fl n l a n if i e i o ag i n eo t n c o ie

8 ar sponset Qualysmot nf rsummar j dgmen fldonJul 15, 0.Plitfsal ge e o i' i o t o yu ti e y 201 anif l e
9 t att i ext nsi n i m ert d on t e gr undst att e Cour m ustfr tdet r i e w het eri has h hs e o s ie ho hh t is em n ht

l j rsditon t decie t i case on Pl itgs'moton t r m and. Acc r i g t Pl itfs,t ey 0 u i ci o d hs an i i oe o d n o a n if h
11 shoul notbe r quied t fl a tm el r sponse t Q ualt ' moton because t e l aterw ilbe d e r o ie i y e o iy s i h' t m l

1 mootit e rm an ordimisali gr nt d. ( ot t Enlr eTi e( 20)at2) I r s onse, 2 fh e d s s s a e ' M .o a g m # ' .nep
1 Q ual yar ues t atPl i tfs m oton shoul be deni d because i's not i g m or t an a del y 3 ig t h a n if ' i d e t' i hn eh a

1 tctc. ( pp' t Mot t Enlre Ti e( 21)at2) 4 a i ' O n o .o a g m # .
1 5 I t i case,t e Cour wilgr ntPl i tfs' oton and al w t em 15 days fom t e dat n hs h tla a n if m i lh o rh e

l oft i Or ert fl arsponset Qualy' Motonf r 6 hs d o i e e o i s i o Summar Judgment/19) Alhought e t y (/ . t h
1 C our has di m i sed t e cl i s agai stAur r ,t er i s i a cl i pendi g agai stQ ualy 7 t ss h am n o a h e s tl a m l n n i t

1 basedonviltonoft eNevada FaiDebtCol ctonPr ct eAc.( eeCompl( 1- )at7) 8 oa i h r l i ai tS e c .# 1 .
19 I Pl i tfs bel ve t i cl i i d oot'as st t d above, Pl i tfs shal fl a m oton f r f a n if i e hs a m s ' m' ae a n if l ie io 20 vol nt r di m i sali t e aler atve. u ay s s nh tn i 21 C O N C LU S I N O

22
2 4

Fort ef r goigr as ns,I I ORDERED tatPlitgs'Moton t Remand ( 6)i h oe n e o T S h an i io #s
I I FURTHER O R D ER ED t atDef ndantAur r Loan Ser i es LLC ' M oton t TS h e oa vc S io

23 D EN I D . E

25 Dim is t e Compli t( 5)i GIANTED wih pr j die. ssh an # s R t eu c
26 // / 2 // 7/
28 // /
l7

l

I I FURTHER ORDERED t atPlitfs' int Enlr eTi e( 20)i GM NTED. TS h an if Moto o a g m # s
Pl i tfs shal have 15 days fom t e dat oft i O r ert 5i t ei opposii n t Def ndant a n if l r h e hs d o e h r to o e

3

Qu lyLoanSerieCor or ton' Mot nf r ai t vc p a i s i o Summar ludgment#19)or i teal r atve, o y ( , ,n h t n i e
a m oton f rvol nt r di m i sal io u ay s s .

I I FURTHER ORDERED t atPli tfs'Moton t CeriyQues i n t t e Nevada TS h an i f io t f to o h

Supr m e Cour ( 20)i DENI D . e t# s E
DA TE D :Thi 20t day ofO ct ber 2010. sb o,

i d St t s it i tJudge t e ae rc
11

13

21

18