ORDER
“Where concurrent proceedings in state and federal court are both suits in rem or quasi in rem, the court first assuming jurisdiction over the property may maintain and exercise that jurisdiction to the exclusion of the other.”
Knaefler v. Mack,
Because these questions of law are determinative of the matter pending before this court, and there is no clearly controlling precedent in the decisions of the Nevada Supreme Court, we respectfully certify to the Nevada Supreme Court the questions of law set forth in Part III of this order. See Nev. RApp. P. 5.
I. BACKGROUND
A. Quiet Title Action
This appeal stems from a complaint (the Quiet Title Action) filed by Plaintiffs-Appellants George and Brenda Chapman (the Chapmans) against Defendants-Appellees Deutsche Bank National Trust Company (Deutsche Bank), National Default Servicing Corporation, and HomEq Servicing Corporation (collectively, the Defendants). The complaint was filed in the Second Judicial District Court of the State of Nevada (the state District Court), and was subsequently removed to the United States District Court for the District of Nevada (the federal District Court).
*1042 In their complaint, the Chapmans alleged that “[t]hey fell behind on payments on [their] mortgage,” and the Defendants initiated non-judicial foreclosure proceedings against the Chapmans’ home (the Property). Deutsche Bank then purchased the Property at an October 2008 trustee’s sale.
According to the complaint, the Defendants’ conduct allegedly violated two rules governing trustee’s sales under Nevada law: first, the Chapmans “were never given statutory notice of the default” or “notice of trustee’s sale” as required by Nevada Revised Statutes § 107.080, and second, the Defendants did not “own[ ] [the Chap-mans’] promissory note or their deed of trust,” thus barring them from foreclosing and obtaining title to the Property. The Chapmans sought the following relief: (1) declaratory relief determining that the trustee’s sale was void ab initio, (2) a quiet title judgment determining that they are owners of the Property in fee simple, and that the Defendants “have no right, title, estates, lien or interest in the Property,” and (3) actual and punitive damages on account of the Defendants’ “massively disorganized” conduct and “open disregard for the law.” Fairly read, the Chapmans’ complaint included two causes of action: a common-law claim for the tort of wrongful foreclosure,
see Collins v. Union Fed. Sav. & Loan Ass’n,
B. Unlawful Detainer Action
Approximately three months prior to the time that the Chapmans filed the Quiet Title Action, Deutsche Bank initiated unlawful detainer proceedings (the Unlawful Detainer Action) against the Chapmans in the Reno Justice Court of the State of Nevada. Deutsche Bank alleged that it was the owner of the Property, and accordingly requested restitution of the premises from the Chapmans. From the record presented to us, it appears that the Justice Court did not take any action in the Unlawful Detainer Action until after the Quiet Title Action was filed in state District Court.
C. State and Federal Court Proceedings
After the Chapmans filed their Quiet Title Action against Defendants, but before Defendants removed that action to federal court, the Chapmans filed a motion in the Unlawful Detainer Action to transfer that case from the state Justice Court to the state District Court, where the Quiet Title Action was pending. While the motion to transfer was pending in state Justice Court, the Defendants removed the Quiet Title Action to federal court. A week later, the state Justice Court transferred the Unlawful Detainer Action to the state District Court.
In the federal proceedings, the Chap-mans filed a motion to remand the action to state court under 28 U.S.C. § 1447(c). The Chapmans contended (in relevant part) that the federal court should abstain or dismiss the Quiet Title Action because the Unlawful Detainer Action was proceeding simultaneously in state court. The Defendants then filed a motion to dismiss the Quiet Title Action for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). After holding a hearing on the motions, during which the Chapmans’ attorney informed the court that the Unlawful Detainer Action remained pending in state District Court, the court denied the motion to remand and granted the motion to dismiss the complaint. The Chapmans timely appeal.
II. DISCUSSION
A. Jurisdiction and Standard of Review
We have jurisdiction over “all final decisions” issued by federal district courts.
*1043
28 U.S.C. § 1291. “Ordinarily an order dismissing the complaint rather than dismissing the action is not a final order and thus not appealable. However, if it appears that the district court intended the dismissal to dispose of the action, it may be considered final and appealable.”
Knevelbaard Dairies v. Kraft Foods, Inc.,
We review de novo a district court’s denial of a motion to remand to state court for lack of federal subject matter jurisdiction.
United Computer Sys., Inc. v. AT & T Corp.,
B. Prior Exclusive Jurisdiction Doctrine
Before we can address the merits of the Chapmans’ appeal, we must determine whether the federal District Court had jurisdiction to decide the Quiet Title Action while the Unlawful Detainer Action remained pending in the state District Court. Ordinarily, “ ‘the pendency of an action in the state court is no bar to proceedings concerning the same matter in the Federal court having jurisdiction.’ ”
Exxon Mobil Corp. v. Saudi Basic Indus. Corp.,
Relying on the “prior exclusive jurisdiction” doctrine, the Chapmans contend that the federal District Court should have remanded the Quiet Title Action to state court. The prior exclusive jurisdiction doctrine holds that “when one court is exercising
in rem
jurisdiction over a
res,
a second court will not assume
in rem
jurisdiction over the same
res.” Marshall v. Marshall,
Where the action is in rem the effect is to draw to the federal court the possession or control, actual or potential, of the res, and the exercise by the state court of jurisdiction over the same res necessarily impairs, and may defeat, the jurisdiction of the federal court already at *1044 tached. The converse of the rule is equally true, that where the jurisdiction of the state court has first attached, the federal court is precluded from exercising its jurisdiction over the same res to defeat or impair the state court’s jurisdiction.
Kline v. Burke Constr. Co.,
When applying the doctrine, courts should not “exalt form over necessity,” but instead should “look behind the form of the action to the gravamen of a complaint and the nature of the right sued on.”
State Eng’r,
Whether the doctrine is described as a rule of comity or subject matter jurisdiction,
see id.
at 810 (subject matter jurisdiction);
Metro. Finance Corp. of Cal. v. Wood,
C. Application of Prior Exclusive Jurisdiction Doctrine
1. Priority of Concurrent Actions
“Where the assertion of jurisdiction by the two courts is nearly simultaneous, it becomes important ... to determine the precise time when the jurisdiction attaches.”
Penn. Gen. Cas. Co.,
2. Characterization of Concurrent Actions
We therefore must determine whether the two actions are characterized as in rem, quasi in rem, or in personam under Nevada law. If both the Unlawful Detainer Action and the Quiet Title Action are characterized as in rem or quasi in rem, the prior exclusive jurisdiction doctrine applies. For the following reasons, we conclude that the characterization of these two actions is an open question of Nevada state law.
In order to characterize the actions as
in rem, quasi in rem,
or
in personam,
we first must “look behind the form of the action[s] to the gravamen of [the] complaint[s] and the nature of the rightfs] sued on.”
State Eng’r,
We are not aware of any controlling precedents regarding the characterization of quiet title actions and unlawful detainer actions under Nevada law.
3
Nevada follows general common-law principles distinguishing
in rem
actions from
in personam
actions. “A judgment
in rem
is an adjudication pronounced upon the
status
of some particular subject-matter,” whereas a judgment
in personam
operates “between the parties claiming the right.”
State v. Cent. Pac. R.R.,
A judgment quasi in rem, like a judgment in rem, affects interests in a thing; but unlike a judgment in rem it affects the interests of only particular persons in the thing and not the interests of all *1047 persons in the thing. It differs from a personal judgment in that it does not impose a personal liability or obligation upon anyone.
Restatement (Second) of Conflict of Laws, ch. 3, intro, note (1971).
Applying these general rules, courts in other jurisdictions have issued conflicting statements about the proper characterization of quiet title and unlawful detainer actions. Courts have described quiet title actions as
in
rem,
e.g., 1*0235 Washington St. Corp.,
The closest authority we have identified under Nevada law is
Robinson v. Kind,
Where a court of equity is empowered to cancel a deed and establish title to land within its jurisdiction by mere force of its decree, to that extent its action is in rem.
In Galpin v. Page, [9 F.Cas. 1126 (Field, Circuit Justice, C.C.D. Cal. 1874) (No. 5,206) ], the court held that proceedings which are in form personal suits, but which seek to subject property brought by existing lien or by attachment under the control of the court, and those which seek to dispose of property, or relate to some interest therein, but which touch the property or interest only through the judgment recovered, while not strictly proceedings in rem, so far as they affect property in the state, are treated substantially as such proceedings ....
The case at bar is substantially a proceeding in rem. Its direct object is to reach and dispose of the property of the parties described in the complaint. The decree of the trial court is substantially a decree in rem.
Id.
at 342-43,
This statement suggests that both the Quiet Title Action and the Unlawful Detainer Action are substantially
in rem,
or perhaps
quasi in rem,
because these actions require courts to determine the parties’ respective possessory and/or ownership interests in the Property. However,
Robinson
is not conclusive of the issues presented in this appeal. The principles underlying
in rem
actions have changed since
Robinson
was issued,
see, e.g.,
Restatement (Second) of Judgments § 6 cmt.
*1048
a (1982) (“[TJhe notice requirement may erase the distinction between in rem and quasi in rem proceedings. It is therefore questionable whether the traditional distinction is useful for any purpose.”), and persuasive authorities have disagreed with the conclusions stated in
Robinson, see, e.g., Nevada v. United States,
We believe that the Nevada Supreme Court should have an opportunity to decide these questions in the first instance. The resolution of these questions will determine the outcome of this appeal, because if both the Quiet Title Action and the Unlawful Detainer Action are characterized as in rem or quasi in rem, then the prior exclusive jurisdiction doctrine requires us to vacate the District Court’s dismissal of the Quiet Title Action.
III. THE QUESTIONS CERTIFIED
The questions of law we certify are:
1. Is a quiet title action under Nevada Revised Statutes § 40.010, which is premised on an allegedly invalid trustee’s sale under Nevada Revised Statutes § 107.080(5)(a), properly characterized under Nevada law as a proceeding in person-am, in rem, or quasi in rem?
2. Is an unlawful detainer action under Nevada Revised Statutes § 40.255(l)(c) properly characterized under Nevada law as a proceeding in personam, in rem, or quasi in rem?
IV. CONCLUSION
Because these open questions of Nevada state law will determine the outcome of this case, we respectfully request that the Nevada Supreme Court accept and decide the questions certified. We agree to abide by the Nevada Supreme Court’s decision, as specified by Nevada Rule of Appellate Procedure 5(h), which provides that “[t]he written opinion of the Supreme Court stating the law governing the questions certified ... shall be res judicata as to the parties.”
The clerk of this court shall forward a copy of this order, under official seal, to the Nevada Supreme Court, along with copies of all briefs and excerpts of record that have been filed with this court. The parties shall notify the clerk of this court within seven (7) days of any decision by the Nevada Supreme Court to accept or decline certification, and, if the Nevada Supreme Court accepts certification, the parties shall then notify the clerk of this court within seven (7) days of the issuance of that Court’s opinion.
If the Nevada Supreme Court accepts certification, Plaintiffs-Appellants George and Brenda Chapman shall be the appellants in that Court, and Defendants-Appellees Deutsche Bank National Trust Company, National Default Servicing Corporation, and HomEq Servicing Corporation shall be the respondents. As required by Nevada Rule of Appellate Procedure 5(c)(5), the names and addresses of counsel appear in the appendix.
IT IS SO ORDERED.
APPENDIX
Terry J. Thomas, 7330 Hunter Glen Drive, Reno, NV 89523; Geoffrey Lynn Giles, P.O. Box 93, Reno, NV 89504, for the plaintiffs-appellants.
*1049 Jeffrey S. Allison, Houser & Allison, 9970 Research Drive, Suite 100, Irvine, CA 92618; Stephanie Cooper Herdman, The Cooper Castle Law Firm, LLP, 820 South Valley View Boulevard, Las Vegas, NV 89107, for the defendants-appellees.
Notes
. Applying this rule, we have affirmed a district court decision remanding a federal action to state court,
State Eng’r,
. The federal District Court properly concluded that the Quiet Title Action satisfied the diversity jurisdiction requirements of 28 U.S.C. § 1332(a)(1), and the removal requirements of 28 U.S.C. §§ 1441(a) and 1446(a)-(b). It is undisputed that the parties are of diverse citizenship, and, contrary to the Chap-mans’ contention during oral argument, the District Court properly held that this action satisfies the $75,000 amount-in-controversy requirement. " 'In actions seeking declaratory or injunctive relief, it is well established that the amount in controversy is measured by the value of the object of the litigation.’ ”
Cohn v. Petsmart, Inc.,
The District Court also properly rejected the Chapmans' argument that the Defendants “waived their right to remove this action” on account of their conduct in state court. A defendant " 'may waive the right to remove to federal court where, after it is apparent that the case is removable, the defendant takes actions in state court that manifest his or her intent to have the matter adjudicated there, and to abandon his or her right to a federal forum.’ ”
EIE Guam Corp. v. Long Tern Credit Bank of Japan, Ltd.,
. Faced with a similar pairing of cases — one action involving a dispute over possession of a property (as with the Unlawful Detainer Action), and a separate action involving a dispute over ownership of that property (as with the Quiet Title Action) — a number of circuit courts (including our own) have invoked the prior exclusive jurisdiction doctrine to dismiss, remand, or enjoin the second-filed action.
See Crossman v. Fontainebleau Hotel Corp.,
Despite these persuasive precedents, the outcome here depends entirely upon Nevada law's characterization of quiet title actions and unlawful detainer actions. If either action is
in personam,
then the prior exclusive jurisdiction doctrine will not apply.
B.g., Knaefler v. Mack,
. See, e.g., 9 Richard R. Powell et al., Powell on Real Property § 68.09[2][a] (Supp.2011) (describing unlawful detainer as a "statutory substitute” for common-law ejectment action).
