Court Opinion

ID: 9365587
Source: CourtListenerOpinion
Date Created: 2023-01-24 17:00:43.591288+00
Date Added: 2024-06-11T17:15:46.320267
License: Public Domain

NOT FOR PUBLICATION                          FILED
                    UNITED STATES COURT OF APPEALS                        JAN 24 2023
                                                                      MOLLY C. DWYER, CLERK
                                                                       U.S. COURT OF APPEALS
                            FOR THE NINTH CIRCUIT

BANK OF NEW YORK MELLON, FKA                    No.    19-16891
Bank of New York, as Trustee for the
Certificateholders of the CWABS, Inc.,          D.C. No.
Asset-Backed Certificates, Series 2006-2,       2:16-cv-01811-GMN-DJA

      Plaintiff-counter-
      defendant-Appellee,                       MEMORANDUM*

 v.

SOMMERSET PARK HOMEOWNERS
ASSOCIATION; ALESSI & KOENIG,
LLC,

                Defendants,

and

SFR INVESTMENTS POOL 1, LLC,

      Defendant-counter-claimant-
      cross-claimant-Appellant,

 v.

HOUSEHOLD FINANCE REALTY
CORPORATION OF NEVADA; et al.,

                Cross-claim-defendants.

      *
             This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
                   Appeal from the United States District Court
                            for the District of Nevada
                   Gloria M. Navarro, District Judge, Presiding

                           Submitted January 11, 2023**
                              Pasadena, California

Before: CALLAHAN, R. NELSON, and H.A. THOMAS, Circuit Judges.

      SFR Investments Pool 1, LLC (SFR) appeals from the district court’s grant

of summary judgment for Bank of New York Mellon (BNYM) in a quiet title and

declaratory relief action involving residential property located in Las Vegas,

Nevada. We have jurisdiction under 28 U.S.C. § 1291, review de novo,

Berezovsky v. Moniz, 869 F.3d 923, 927 (9th Cir. 2017), and affirm.

      This case arises from a foreclosure sale to satisfy a homeowners association

(HOA) “superpriority lien” on the property. Nevada law provides that if a

homeowner fails to pay a certain portion of HOA dues, the HOA is authorized to

foreclose on a “superpriority lien” in that amount, extinguishing other liens and

encumbrances on the delinquent property, including a previously recorded first

deed of trust. See Nev. Rev. Stat. § 116.3116. However, a lender holding a first

deed of trust may avoid extinguishment of its lien by tendering payment on the

“superpriority” portion of the unpaid HOA dues. See Bank of Am., N.A. v.

      **
             The panel unanimously concludes this case is suitable for decision
without oral argument. See Fed. R. App. P. 34(a)(2).

                                          2
Arlington W. Twilight Homeowners Ass’n, 920 F.3d 620, 622–23 (9th Cir. 2019);

see also Bank of Am., N.A. v. SFR Invs. Pool 1, LLC, 427 P.3d 113, 116–17 (Nev.

2018) (en banc) (Diamond Spur).

      SFR’s primary assertion on appeal is that BNYM’s claim is untimely

because it was not filed within three years of the foreclosure sale. This argument

was rejected by the Nevada Supreme Court in U.S. Bank, N.A. v. Thunder

Properties, Inc., 503 P.3d 299 (Nev. 2022), which held that Nevada’s four-year

catch-all statute of limitations applied to quiet title actions. Id. at 302.

      As the statute of limitations issue is the only issue clearly developed on this

appeal, we do not address any other arguments.

      The district court’s grant of judgment to BNYM is AFFIRMED.

                                            3