Justia Banking Opinion Summaries

Articles Posted in Supreme Court of Nevada
by
After the Borrower defaulted on a loan, the Guarantor (the petitioner) allegedly breached the guaranty. Omni (the real party in interest) filed a complaint against the Guarantor for the alleged default on the guaranty. At issue on appeal is whether a creditor's amended complaint seeking a deficiency judgment against petitioner may relate back to a timely complaint against a different party pursuant to NRCP 15(c), so as to satisfy NRS 40.455(1)'s six-month deadline for an application for a deficiency judgment against petitioner. The court concluded that the district court erred in permitting the real party in interest's amended complaint to relate back to the timely original complaint pursuant to NRCP 15(c), so as to satisfy the six-month deadline for an application for a deficiency judgment against petitioner, as required by NRS 40.455(1); the timely complaint against the borrowers does not constitute a valid application for deficiency judgment against the unnamed petitioner; and petitioner did not waive his right to object under NRS 40.455(1). Accordingly, the court concluded that the district court erred in denying petitioner's motion for summary judgment in the guaranty action and motion to dismiss in the borrower action, and the court granted the petition for writ of mandamus. View "Badger v. Eighth Jud. Dist. Ct." on Justia Law

by
Hawley McIntosh purchased a home located within a common-interest community. McIntosh’s first mortgage lender subsequently foreclosed on McIntosh’s home. Scott Ludwig purchased the property and subsequently transferred the property by quitclaim deed to Ikon Holdings, LLC. Ikon acknowledged that it acquired the property subject to the homeowner association’s (Horizons) superpriority lien but disagreed that the lien included nine months, rather than six months, of unpaid assessments or the collection fees and foreclosure costs Horizon was seeking to recoup. Thereafter, Ikon filed the underlying declaratory relief action. The district court granted partial declaratory relief, concluding that Horizons’ covenants, conditions, and restrictions (CC&Rs) limited its superpriority lien to an amount equal to six months of assessments, which did not offend Nev. Rev. Stat. 116.3116(2)’s superpriority provision providing for nine months of assessments. The Supreme Court affirmed in part and reversed in part, holding (1) a superpriority lien for common expense assessments pursuant to section 116.3116(2) does not include collection fees and foreclosure costs incurred by an HOA; and (2) an HOA’s CC&Rs that purport to create a superpriority lien covering certain fees and costs over six months preceding foreclosure are superseded by the terms of the superpriority lien created by section 116.3116(2). View "Horizons at Seven Hills Homeowners Ass’n v. Ikon Holdings, LLC" on Justia Law