Bank of America, N.A. v. Los Prados Community Association, Inc.
2:16-cv-03008
D. Nev.Apr 12, 2017Background
- Bank of America, N.A. sues Los Prados Community Association, Inc. in the District of Nevada over the effect of an HOA nonjudicial foreclosure after a homeowner’s failure to pay assessments.
- A divided Ninth Circuit in Bourne Valley held pre-2015 Nevada HOA foreclosure statutes facially violated lenders’ due process rights.
- Nevada Supreme Court later held that due process is not implicated in HOA foreclosures of superpriority liens under Saticoy Bay LLC Series 350 Durango 104 v. Wells Fargo Home Mortgage.
- There is a potential conflict between Bourne Valley and Saticoy Bay that could be resolved by the U.S. Supreme Court, prompting petitions for certiorari.
- Judge Gordon sua sponte stayed the case under Landis to await the Supreme Court’s disposition on the petitions, noting the stay should be reasonably short and not indefinite.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether to stay pending certiorari in Bourne Valley and Saticoy Bay | Stay will simplify issues and conserve resources by awaiting complete precedent. | Stay is appropriate to avoid piecemeal rulings and excessive briefing on unsettled law. | Case administratively STAYED pending Supreme Court disposition. |
Key Cases Cited
- Bourne Valley Court Tr. v. Wells Fargo Bank, 832 F.3d 1154 (9th Cir. 2016) (foreclosure scheme facially violated lenders’ due process rights (pre-2015 statutes))
- Saticoy Bay LLC Series 350 Durango 104 v. Wells Fargo Home Mortgage, 388 P.3d 970 (Nev. 2017) (due process not implicated in HOA nonjudicial foreclosures of superpriority liens)
- Landis v. N. Am. Co., 299 U.S. 248 (1936) (inherent power to stay cases to promote efficient docket management)
- Dependable Highway Exp., Inc. v. Navigators Ins. Co., 498 F.3d 1059 (9th Cir. 2007) (factors for staying pending related proceedings)
- Lockyer v. Mirant Corp., 398 F.3d 1098 (9th Cir. 2005) (9th Cir. test for stay considerations)
