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Bank of America, N.A. v. Los Prados Community Association, Inc.
2:16-cv-03008
D. Nev.
Apr 12, 2017
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Background

  • 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)
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Case Details

Case Name: Bank of America, N.A. v. Los Prados Community Association, Inc.
Court Name: District Court, D. Nevada
Date Published: Apr 12, 2017
Docket Number: 2:16-cv-03008
Court Abbreviation: D. Nev.