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Wells Fargo Bank, NA v. Mahogany Meadows Avenue Trust

Wells Fargo Bank, N.A. appeals the district courts dismissal of its diversity action alleging claims arising out of the nonjudicial foreclosure on real property by a homeowners association in Las Vegas, Nevada.
Case Name:
Wells Fargo Bank, NA v. Mahogany Meadows Avenue Trust
Case Number:
18-17320
Case Panel:
MURGUIA, Steeh, MILLER
Hearing Location:
Pasadena CA
Hearing Date:
05/12/2020

Introduction
This case involes a dispute over real property located at 6896 Mahogany Meadows Avenue, North Las Vegas, NV 89122 (the property).
The borrowers obtained title to the property. On April 18, 2011, a notice of delinquent assessment lien was recorded by the HOA. On December 21, 2012, a notice of trustee’s sale was recorded. On February 14, 2013, a trustee’s deed upon sale was recorded. The trustee’s deed stated Mahogany purchased the property for $5,332.00 at the HOA foreclousure sale on February 5, 2013.
Well’s Fargo’s complaint alleges the following claims: quiet title/declaratory relief under the takings clauses of the 5th and 14th Amendents of the US Constitution against all defendants, relief under the supremacy clause of the 4th amendment, quite title/declaratory relief under the due process clauses of the 5th and 14th amendments; wrongful foreclosure against all defendants; violations of NRS 116.1113 against defendants, quiet tittle against all defendants; and unjust enrichment against Mahogany.

Mahogany’s motion seeks to dismiss Wells Fargo’s claims because it argues the foreclosure sale was properly conducted, the bank is not entitled to equitable relief, Mahogany is a bona fide purchaser, there is no requirement that the foreclosure notice specify the superpriority lien amount, there is no commercially reasonable requirement, FHA is not a party, and because the deed of trust was extinguished.

The HOA’s motion seeks to dismiss Well’s Fargo’s wrongful foreclosure and violation of NRS 116.1113 clains as time-barred or in the alternative, for failure to comply with NRS 38.310’s mediation requirement (ECF No. 13)

Mahogany challenges wells fargo’s quie title claims by asserting that the quiet title/declaratory relief claim did not violate wells fargo’s right to procedural due process (ECF No. 9). Here, wells fargo does not dispute that it or its predecessor in interest received actual notice of the delinquent assessment and intent to sell (ECF No. 17). Instead, well fargo contends that the notices were inadequate because they failed to identify the amount of the superpriority portion of the lien. Further, wells fargo argues the notices failed to specify that wells fargos interest would be extinguished by the HOA foreclosure.

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