Centeno v. Mortg. Elec. Registration Sys., Inc. ( 2016 )

IN THE SUPREME COURT OF THE STATE OF NEVADA
MARTIN CENTENO, AN INDIVIDUAL; No. 64998
AND PLUMERIA FAMILY TRUST, A
NEVADA REVOCABLE LIVING
TRUST,
Appellants,
vs.
FILED
MORTGAGE ELECTRONIC JUN 23 2016
REGISTRATION SYSTEMS, INC.; TRACE K. LINDEMAN
CLERK OF SUPREME COURT
RECONTRUST COMPANY, N.A.; AND BY
BANK OF AMERICA, N.A., DEPUTY CLER
Respondents.
ORDER OF AFFIRMANCE
This is an appeal from a district court summary judgment in a
quiet title action. Eighth Judicial District Court, Clark County; Susan
Scann, Judge.
BACKGROUND
The material facts in this case are undisputed. The property
that is the subject of this appeal is governed by HollowS De Oro
Homeowners' Association (HOA), which, through covenants, conditions,
and restrictions, imposes assessments on homeowners. Alberto and Elvira
Hernandez purchased the subject property with a loan secured by a first
deed of trust that was assigned to respondent Bank of America, N.A.
(BOA). Thereafter, the Hernandezes defaulted on their loan obligations
and also became delinquent with their HOA assessments.
BOA and HOA separately initiated foreclosure proceedings.
HOA proceeded, recording a notice of trustee's sale. But before foreclosing
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on the property, HOA rescinded the notice. On July 27, 2011, appellant
Plumeria Family Trust purchased the property at the HOA foreclosure
sale and conveyed a portion of its interest to appellant Martin Centeno.
Appellants recorded the trustee's deed upon sale.
Appellants then filed a complaint to quiet title and attached
the trustee's deed upon sale. However, appellants produced no documents
demonstrating that a valid notice of trustee's sale was recorded before the
foreclosure sale. BOA moved for summary judgment, arguing that
because no notice of trustee's sale was recorded at the time of foreclosure,
the property was purchased subject to BOA's senior deed of trust. In
opposition, appellants argued that the recitals contained in the deed of
trust were conclusive evidence of notice compliance and superior title. The
district court granted BOA's motion for summary judgment, concluding
that because no notice of sale was recorded at the time of sale, Plumeria
Family Trust purchased the property subject to BOA's senior deed of trust.
This appeal followed.
DISCUSSION
"This court reviews a district court's grant of summary
judgment de novo." Wood u. Safeway, Inc., 121 Nev. 724, 729, 121 P.3d
1026, 1029 (2005). Although "the pleadings and other proof must be
construed in a light most favorable to the nonmoving party," the
nonmoving "party bears the burden to 'do more than simply show that
there is some metaphysical doubt' as to the operative facts in order to
avoid summary judgment being entered in the moving party's favor." Id.
at 732, 121 P.3d at 1031 (quoting Matsushita Elec. Indus. Co., Ltd. v.
Zenith Radio Corp., 475 U.S. 574, 586 (1986)). It is the duty of the
nonmoving party to, "by affidavit or otherwise, set forth specific facts
demonstrating the existence of a genuine issue for trial" or summary
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judgment will be entered against the party. Id. (internal quotation
omitted). "The nonmoving party is not entitled to build a case on the
gossamer threads of whimsy, speculation, and conjecture." Id. (internal
quotations omitted). Moreover, "[a] plea to quiet
title ... require[s] . . . [that] 'each party . . . plead and prove his or her own
claim to the property in question' and a 'plaintiffs right to relief therefore
depends on superiority of title." Chapman v. Deutsche Bank Nat'l Trust
Co., 129 Nev., Adv. Op. 34, 302 P.3d 1103, 1106 (2013) (quoting Yokeno v.
Mafnas, 973 F.2d 803, 808 (9th Cir. 1992)).
Here, appellants failed to, by affidavit or otherwise, establish
that a valid notice of trustee's sale was recorded at the time of foreclosure
to support the deed's recitals of notice compliance. Appellants thereby
failed to meet their burden to prove that BOA's first deed of trust was
properly extinguished. See SFR Inus. Pool 1, LLC v. U.S. Bank, N.A., 130
Nev., Adv. Op. 75, 334 P.3d 408, 419 (2014) ("NRS 116.3116(2) gives an
HOA a true superpriority lien, proper foreclosure of which will extinguish
a first deed of trust."' (emphasis added)). Thus, appellants purchased the
property subject to BOA's first deed of trust and no genuine issues of
material fact remain.
'We note that although the 2009 version of NRS 116.3116 applies
here, the 2011, 2013, and 2015 amendments do not affect SFR's
requirement that an HOA foreclose properly in order to extinguish a first
deed of trust. See id.SUPREME COURT
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Accordingly, we ORDER the judgment of the district court
AFFIRMED.
ct--54-6C C.J.
Parraguirre
1 LJIP:ILL
vik , J.
Cherry
cc: Hon. Susan Scann, District Judge
Law Office of David Ortiz
Kim Gilbert Ebron
Akerman LLP/Las Vegas
Eighth District Court Clerk
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