Bank of America, N.A. v. Maravilla at Mountain's Edge Homeowners Association
2:16-cv-00262
D. Nev.Feb 18, 2020Background
- Property: 8928 Marble Light Ave., Las Vegas; HOA Maravilla conducted a nonjudicial foreclosure sale on April 7, 2014; SFR purchased the property at the sale.
- Bank of America (beneficiary of record on a first deed of trust) sued for a declaration that the deed of trust was not extinguished by the HOA sale; SFR counterclaimed that it bought free and clear.
- NAS (HOA agent) recorded notice of delinquent assessment on May 31, 2011; the superpriority amount was calculated at $423 (three months of $69 plus a $216 forwarded balance).
- Miles Bauer (counsel for Bank of America) requested the superpriority payoff; Bank of America tendered $540 to NAS, whichNAS refused to accept.
- Court held Bank of America validly tendered the superpriority amount, extinguishing the superpriority portion of the HOA lien and rendering the sale void as to the deed of trust; judgment entered for Bank of America.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Effect of tender on superpriority lien | Bank of America: unconditional full tender to NAS extinguished superpriority portion, so sale is void as to deed of trust | SFR: tender did not extinguish lien / sale is valid and purchaser took free and clear | Held: Tender extinguished the superpriority portion; sale void as to deed of trust; property remains subject to deed of trust |
| Amount/authentication of superpriority payoff | Bank of America: NAS ledger and Miles Bauer records show $423 due; $540 tendered; NAS refused | SFR: challenges authentication of ledger, alleges possible maintenance/nuisance charges | Held: Ledger and tender evidence sufficient for summary judgment; no evidence of maintenance or nuisance charges; SFR failed to raise genuine dispute |
| Conditionality of the Miles Bauer tender letter | Bank of America: letter was a valid unconditional tender; any purported condition is immaterial absent maintenance charges | SFR: letter imposed an impermissible condition, so tender invalid | Held: Where no maintenance/nuisance charges exist, the letter did not impose impermissible conditions; tender valid |
| Role of equities / bona fide purchaser status | Bank of America: tender operates by law; equities not required; purchaser status irrelevant when sale is void by operation of law | SFR: court should balance equities and consider BFP status, waiver, estoppel, unclean hands | Held: No equitable balancing required because valid tender voided sale as a matter of law; BFP status irrelevant |
| Standing to seek declaratory relief | Bank of America: beneficiary of record; seeks declaration, not to foreclose | SFR: challenges standing, questions original note/assignments and reunification | Held: Bank of America, as record beneficiary, has standing to seek declaration; SFR produced no contrary evidence |
Key Cases Cited
- Bank of Am., N.A. v. SFR Invs. Pool 1, LLC, 427 P.3d 113 (Nev. 2018) (tender of superpriority portion, if valid, extinguishes that portion and sale is void as to deed of trust)
- SFR Invs. Pool 1, LLC v. U.S. Bank, N.A., 334 P.3d 408 (Nev. 2014) (describes HOA superpriority lien as last nine months of unpaid assessments and certain charges)
- Saticoy Bay LLC Series 2021 Gray Eagle Way v. JPMorgan Chase Bank, N.A., 388 P.3d 226 (Nev. 2017) (notice of delinquent assessment constitutes institution of action to enforce lien)
- Fraser v. Goodale, 342 F.3d 1032 (9th Cir. 2003) (at summary judgment, court may consider evidence whose contents could be presented in admissible form at trial)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (standard for summary judgment—materiality and genuine dispute)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (initial summary judgment burden and shifting burdens)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (U.S. 1986) (nonmoving party must do more than show metaphysical doubt to resist summary judgment)
- Bank of Am., N.A. v. Arlington W. Twilight Homeowners Ass’n, 920 F.3d 620 (9th Cir. 2019) (tender of nine months of assessments sufficient where ledger shows no maintenance or nuisance charges)