Bank of America, N.A. v. Travata and Montage at Summerlin Centre Homeowners Association
2:16-cv-00345
D. Nev.Jul 26, 2017Background
- BANA held a senior deed of trust on 1887 Hollywell St., Las Vegas, acquired May 18, 2011; BANA asserts the loan had FHA mortgage insurance.
- Travata HOA recorded a delinquent assessment lien March 31, 2011 and a notice of default and election to sell June 28, 2011; ledgers and notices showed differing amounts due.
- BANA’s counsel requested proof of the superpriority amount and later tendered $594 (nine months of assessments) on July 29, 2011; the tender was rejected.
- HOA’s trustee conducted a nonjudicial foreclosure sale; NAS conveyed to Underwood (June 2013), which later transferred the property to NV Eagles LLC (Eagles) in October 2013.
- Procedural posture: multiple summary judgment motions filed; prior dismissal narrowed claims to BANA’s quiet title claim and Eagles’ declaratory relief/quiet title claim; BANA’s request for injunctive relief treated as a remedy and dismissed.
- Court’s disposition: denied BANA’s MSJ; granted HOA’s and Eagles’ MSJs; title quieted in Eagles’ favor, subject to unresolved FHA interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether BANA’s tender discharged the HOA’s superpriority lien | BANA: its $594 tender satisfied superpriority portion and should prevent foreclosure | HOA/Eagles: tender was inadequate and rejected; sale valid | Held: tender did not bar foreclosure; defendants prevail |
| Whether refusal of BANA’s tender violated due process | BANA: inadequate rejection denied procedural due process | HOA/Eagles: no due process violation under facts and procedures followed | Held: no due process relief granted to BANA |
| Whether NRS Ch.116 or related statutes are unconstitutional post-Bourne Valley | BANA: Bourne Valley undermines chapter 116 and raises Supremacy Clause/FHA conflict | HOA/Eagles: challenges lack standing/merit; statutes remain enforceable here | Held: court rejected BANA’s broad constitutional challenge for purposes of relief in this case |
| Whether BANA is entitled to quiet title / unwind sale based on inadequate price or retroactivity of SFR | BANA: sale should be undone due to inadequate tender and other defects; SFR shouldn't apply retroactively | HOA/Eagles: sale valid; SFR and Nevada law control; retroactivity not applicable | Held: quiet title denied to BANA; title quieted in Eagles’ favor (FHA interest left unresolved) |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden-shifting framework)
- Lujan v. National Wildlife Federation, 497 U.S. 871 (summary judgment construction of disputed facts)
- Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574 (opposing party must show genuine factual dispute)
- Bourne Valley Court Trust v. Wells Fargo Bank, N.A., 832 F.3d 1154 (9th Cir.) (treated as key precedent regarding HOA superpriority lien issues)
- SFR Investments Pool 1 v. U.S. Bank, 334 P.3d 408 (Nev.) (Nevada Supreme Court decision governing nonjudicial HOA foreclosures)