Wood Bro Capital, LLC v. Underwood et al

Filing 48

ORDER that by 5/3/2017 Wood Bro Capital shall file points and authorities, supported by admissible evidence, that address the issues in order. Signed by Judge Larry R. Hicks on 04/11/2017. (Copies have been distributed pursuant to the NEF - KW)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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*****
WOOD BRO CAPITAL, LLC,

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Plaintiff,

3:16-cv-00405 -LRH-VPC
ORDER

v.
FRED W. UNDERWOOD, et al.
Defendants.

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This is a quiet-title action brought by Plaintiff Wood Bro Capital against the United

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States and several other defendants. Wood Bro and several of the defendants have settled this

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case, and to that end, Wood Bro has moved for a “prove-up hearing” that it purports is required

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under NRS 40.110. While this statute does require the court to receive evidence from a plaintiff

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of its title before entering judgment against defendants that have failed to answer the complaint,

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it does not specifically require a hearing. Because the court finds that written briefing would be

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more efficient and effective, it will order Wood Bro to file points and authorities, supported by

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admissible evidence, that establish that it meets the requirements of NRS 40.110 and thereby

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NRS 40.100.

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I.

Background

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Wood Bro purports to be the current owner of the real property at issue (“subject

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property”), which is located in Washoe County, Nevada. ECF No. 1-1 at ¶ 1. Wood Bro

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purchased the property by quitclaim deed in 2015 from non-party Wood is Good, LLC. Id. at ¶ 7.

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This non-party seller acquired the property from a Washoe County tax sale in 2010, which

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resulted from the then-owner’s failure to pay property tax. Id. at ¶ 8. The county treasurer

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conveyed the property by quitclaim deed. Id. Prior to the tax sale, the subject property was held

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by defendants Fred Underwood, Angela Underwood, and Dwight Carlton, who recorded their

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deed in 1996. Id. at ¶ 9.
The subject property was encumbered by two separate federal tax liens in favor of the

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United States and against Angela Underwood. Id. at ¶ 10. Both liens were recorded in Washoe

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County in 2007. Id.

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Wood Bro now brings this action to quiet its title. It filed suit against the United States,

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the Underwoods, and Carlton. Wood Bro also filed suit against Duane and Genieve South, but

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their interest in the subject property is unclear.
On January 20, 2017, Wood Bro moved for entry of clerk’s default against Carlton and

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the Underwoods (ECF Nos. 32–33), which was entered (ECF Nos. 38–39). Wood Bro eventually

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gave notice of its voluntary dismissal of the Souths. ECF No. 47.
Wood Bro and the United States also notified the court that they had reached a settlement

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agreement. ECF Nos. 42, 46. Wood Bro now moves for a “prove-up hearing” in order to

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conclude this matter.

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II.

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Discussion
Although not stated by Wood Bro, it appears that, based on its citation to NRS 40.110,

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the requested hearing stems from the fact that Wood Bro is seeking an entry of judgment against

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Carlton and the Underwoods (collectively “defaulted defendants”), who have failed to answer

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the complaint or otherwise defend against Wood Bro’s quiet-title claim.

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Where defendants have defaulted, NRS 40.110 grants Nevada courts “jurisdiction to

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examine into and determine the legality of plaintiff’s title and of the title and claim of all the

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defendants.” However, the statute prohibits a court from entering default judgment, and it instead

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requires the court to “require evidence of plaintiff’s title and possession and receive such legal

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evidence as may be offered respecting the claims and title of any of the defendants . . . .” Nev.

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Rev. Stat. § 40.110(1). After receiving such evidence, the court must then “direct judgment to be

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entered in accordance with the evidence and the law.” Id.
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But before addressing plaintiff’s title, the court must first receive proof “that the

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summons has been served and posted as” required under NRS 40.100. Id. This statute requires

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that, within one year of the complaint’s filing, a plaintiff serve the summons in a “manner and

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form” that complies with the Nevada Rules of Civil Procedure. Id. § 40.100(1). The statute

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further requires that, “[w]ithin 30 days after the issuance of the summons, the plaintiff shall post

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or cause to be posted a copy [of the summons] in a conspicuous place, on each separate parcel of

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the property described in the complaint . . . .” Id. § 40.100(2).
In turn, the court will order Wood Bro to file points and authorities, supported by

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admissible evidence, that establish two issues: (1) that it has satisfied the additional service

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requirements under NRS 40.100 in regards to the defaulted defendants and (2) that it has title to

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and possession of the subject property.

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III.

Conclusion

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IT IS THEREFORE ORDERED that, within 21 days of the entry of this order, Wood Bro

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Capital shall file points and authorities, supported by admissible evidence, that address the issues

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set forth above.

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IT IS SO ORDERED.

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DATED this 11th day of April, 2017.

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LARRY R. HICKS
UNITED STATES DISTRICT JUDGE

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