Bank of America, N.A. vs M. Diane Hutton-Potts

Filing 7

ORDER granting ECF No. 6 Joint Motion for Extension of Time for United States to respond to complaint. Response/Answer due by 2/8/2018. Joint Status Report due by 2/28/2018. Signed by Magistrate Judge William G. Cobb on 12/27/2017. (Copies have been distributed pursuant to the NEF - LH)

Case 3:17-cv-00684-MMD-WGC Document 6 Filed 12/19/17 Page 1 of 4

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RICHARD E. ZUCKERMAN
Principal Deputy Assistant Attorney General

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HENRY C. DARMSTADTER
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 683, Ben Franklin Station
Washington, D.C. 20044-0683
Telephone: [phone]
Fax: [phone]
Email: [e-mail]

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Attorneys for the United States of America

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STEVEN W. MYHRE
Acting United States Attorney
District of Nevada
Of Counsel

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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BANK OF AMERICA, N.A.,

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Plaintiff,

Civil No.: 3:17-cv-00684-MMD-WGC

v.

JOINT MOTION FOR FORTY-FIVE
DAY EXTENSION FOR UNITED
STATES (IRS) TO RESPOND TO
COMPLAINT

M. DIANE HUTTON-POTTS, SURVIVING
TRUSTEE OF THE HUTTON-POTTS
FAMILY TRUST DATED SEPTEMBER 25,
1989; SECRETARY OF HOUSING AND
URBAN DEVELOPMENT; DEPARTMENT
OF TREASURY-INTERNAL REVENEU
SERVICE,

FIRST REQUEST
LR IA 6-1, 6-2 and 7-1
(Removed from the District Court for the
State of Nevada, Douglas County, Case No.
17-cv-0243)

Defendants.

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COMES now Plaintiff, Bank of America, N.A. and Defendant, United States of America, on

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behalf of the Internal Revenue Service, an agency of the Department of Treasury, by and through their

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undersigned counsel, and submit a Joint Motion to extend the time in which the United States has to
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Case 3:17-cv-00684-MMD-WGC Document 6 Filed 12/19/17 Page 2 of 4

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respond to the Complaint for a period of forty-five (45) days until February 8, 2018 and to continue

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the filing of the Joint Status Report until February 28, 2018:

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1.

On October 20, 2017, the Bank of America, N.A. filed a civil action in the Douglas

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County District Court against M. Diane Hutton-Potts, surviving trustee of the Hutton-Potts Family

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Trust Dated September 25, 1989 (“Hutton-Potts”), the Secretary of Housing and Urban Development

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(“HUD”), and the Department of Treasury-Internal Revenue Service (“IRS”). The Plaintiff seeks to

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reform a deed of trust on real property in Douglas County due to an error in the legal description of the

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property as described in more detail in the Complaint. The Plaintiff also seeks declaratory relief that its

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deed of trust has priority over the interests of the other defendants, including the subject federal tax

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liens.

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2.

Summons and Complaint in the state court action on or about October 26, 2017.

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3.

4.

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On November 20, 2017, the United States on behalf of the IRS, filed a Notice of

Removal in the United States District Court for the District of Nevada (ECF No. 1).

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Defendant Hutton-Potts was served with a copy of the Summons and Complaint in the

state court action on or about October 30, 2017.

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The United States Attorney for the District of Nevada was served with a copy of the

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On December 7, 2017, Defendant HUD filed a Notice of Disclaimer of Interest (ECF

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To date, Defendant Hutton-Potts has not responded to the Complaint or otherwise

No. 5).

entered an appearance in either the State Court or District Court proceedings.
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The United States’ response to the Complaint is currently due by December 26, 2017.

The Court has ordered that a Joint Status Report is due by December 21, 2017.

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Case 3:17-cv-00684-MMD-WGC Document 6 Filed 12/19/17 Page 3 of 4

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8.

By this Joint Motion, the parties seek a forty-five day extension until February 8, 2018

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in which the United States has to respond to the Complaint and until February 28, 2018 in which the

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parties have to file the Joint Status Report.

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8.

The additional time will allow the parties to consider the relative priorities of the deed of

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trust and the tax liens and potentially enter into a stipulation minimizing the issues in dispute. The extent

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to which the Plaintiff made disbursements on the loan secured by the deed of trust prior to the filing of

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the notice of federal tax lien is not clear at this time.

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DATED: December 19, 2017

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Of Counsel
STEVEN W. MYHRE
Acting United States Attorney

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Attorneys for the United States

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/s/Henry C. Darmstadter
HENRY C. DARMSTADTER
Trial Attorney, Tax Division
U.S. Department of Justice
P.O. Box 683 Ben Franklin Station
Washington, D.C. 20044-0683
[phone]

DATED: December 19, 2017

/s/ Kristan Lehtinen
KRISTAN LEHTINEN, ESQ.
Fidelity National Law Group
8363 W. Sunset Road, Ste 120
Las Vegas, NV 89113
702-667-3000
Attorneys for Plaintiff
IT IS SO ORDERED:

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_________________________________________
UNITED STATES DISTRICT COURT
UNITED STATES MAGISTRATE JUDGE
JUDGE
DATED:
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December 27, 2017.