Bank of America, N.A. v. Hollow De Oro Homeowners' Association
2:16-cv-00675
D. Nev.Mar 9, 2017Background
- BANA sued after a March 12, 2013 non-judicial HOA foreclosure sale on property at 2117 Summer Lily Ave., North Las Vegas; complaint filed March 29, 2016.
- Claims: (1) quiet title/declaratory relief; (2) violation of NRS 116.1113 (breach of good-faith duty) against Hollow De Oro HOA and Absolute Collection Services (ACS); (3) wrongful foreclosure against HOA and ACS.
- HOA moved to dismiss asserting failure to mediate under NRS 38.310, statute-of-limitations, laches, no due-process violation, Supremacy Clause defect, lack of superior title, and that attorneys’ fees were improperly pled as special damages.
- Court evaluated pleading under Rule 12(b)(6) and Iqbal/Twombly standards, and considered Nevada statutory limitations (NRS 11.070 and 11.190).
- Court ruled: statutory claims for NRS 116.1113 and wrongful foreclosure are time-barred; quiet title/declaratory relief survives the motion; attorneys’ fees cannot be pled as special damages in the complaint’s current form.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of NRS 116.1113 claim | BANA contends claim is timely enough to proceed | HOA: claim is barred by the 3-year statute for statutory damages | Held: NRS 116.1113 claim is time-barred (3-year limitations) |
| Timeliness of wrongful foreclosure claim | BANA asserts wrongful-foreclosure claim valid despite timing | HOA: wrongful-foreclosure is a statutory-based damages claim and time-barred | Held: wrongful-foreclosure claim is time-barred (3-year limitations) |
| Quiet title/declaratory relief survivability | BANA seeks to quiet title and obtain declaratory relief | HOA raises mediation failure, lack of superior title, due process, Supremacy Clause issues | Held: Quiet title/declaratory claim survives dismissal; mediation not required and factual disputes inappropriate at 12(b)(6) stage |
| Attorneys' fees as special damages | BANA seeks attorneys’ fees as special damages in the complaint | HOA: attorneys’ fees cannot be alleged as special damages for quiet-title claims absent statute or contract | Held: Attorneys’ fees cannot be recovered as special damages in complaint’s present form (no statutory or contractual basis) |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility pleading standard)
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading must state plausible claim; legal conclusions not assumed true)
- Starr v. Baca, 652 F.3d 1202 (Ninth Circuit guidance on pleading factual allegations)
- Bourne Valley Ct. Tr. v. Wells Fargo Bank, N.A., 832 F.3d 1154 (notice requirements for due-process challenges to HOA foreclosures)
- McKnight Family, L.L.P. v. Adept Mgmt., 310 P.3d 555 (Nevada on wrongful-foreclosure scope and challenges to foreclosure authority)
- Horgan v. Felton, 170 P.3d 982 (attorney fees as special damages limited in title disputes)