416 P.3d 233
Nev.2018Background
- Property in a common-interest community had a first deed of trust assigned to Bank of America (BANA); homeowner became delinquent on loan and HOA assessments.
- HOA conducted a nonjudicial foreclosure sale (NRS Ch. 116) in April 2011; Las Vegas Development Group, LLC (LVDG) purchased and recorded the deed.
- BANA conducted a later nonjudicial deed-of-trust foreclosure sale (NRS Ch. 107) in August 2011; EZ Properties purchased and later conveyed to James Blaha, who recorded title.
- LVDG sued (quiet title, equitable mortgage, slander of title, wrongful foreclosure, rescission, unjust enrichment, conversion), arguing the HOA sale extinguished the deed of trust so BANA lacked authority to foreclose.
- District court granted summary judgment for Blaha, holding LVDG’s claims were barred by the 90/120-day limitations in NRS 107.080(5)-(6); this appeal challenges whether those time limits apply when the foreclosing party lacked authority.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether NRS 107.080(5)-(6) time limits apply to actions challenging the foreclosing party's authority (i.e., deed of trust already extinguished) | LVDG: Statute covers procedural defects only; does not apply when foreclosure is void ab initio for lack of authority | Blaha: Time limits apply to all challenges to nonjudicial foreclosure sales to prevent indefinite overturning of sales | Court: NRS 107.080(5)-(6) applies only to procedural compliance challenges; claims attacking authority to foreclose are not governed by those time limits and proceed under general quiet-title limitations (NRS 11.080) |
| Timeliness of slander of title claim | LVDG did not defend timeliness on appeal | Blaha: Slander claim time-barred | Court: Affirmed dismissal of slander of title as untimely |
Key Cases Cited
- SFR Investments Pool I, LLC v. U.S. Bank, N.A., 130 Nev. 742, 334 P.3d 408 (Nev. 2014) (holding a valid HOA foreclosure sale can extinguish a first deed of trust)
- Building Energetix Corp. v. EHE, LP, 129 Nev. 78, 294 P.3d 1228 (Nev. 2013) (addressed NRS 107.080(5) in the context of tax certificates and redemption rights)
- Shadow Wood Homeowners Ass'n, Inc. v. N.Y. Cmty. Bancorp, Inc., 132 Nev., 366 P.3d 1105 (Nev. 2016) (recognizing equitable grounds may justify setting aside a nonjudicial foreclosure sale)
- McKnight Family, LLP v. Adept Mgmt. Servs., Inc., 129 Nev. 610, 310 P.3d 555 (Nev. 2013) (quiet-title actions require determining who holds superior title)
- Saticoy Bay LLC Series 2021 Gray Eagle Way v. JPMorgan Chase Bank, N.A., 133 Nev., 388 P.3d 226 (Nev. 2017) (quiet-title claim governed by general statute of limitations when dispute concerns title superiority)