Bourne Valley Court Trust v. Wells Fargo, No. 15-15233 (9th Cir. 2016)
Annotate this CaseThis case arises out of an action to quiet title to real property purchased at a homeowners’ association foreclosure auction in North Las Vegas, Nevada. Nevada Revised Statutes section 116.3116 et seq. strips a mortgage lender of its first deed of trust when a homeowners’ association forecloses on the property based on delinquent HOA dues. The court held that the Statute’s “opt-in” notice scheme, which required a homeowners’ association to alert a mortgage lender that it intended to foreclose only if the lender had affirmatively requested notice, facially violated the lender’s constitutional due process rights under the Fourteenth Amendment to the Federal Constitution. Accordingly, the court vacated and remanded for further proceedings.
Court Description: Nevada Foreclosures. The panel vacated the district court’s summary judgment entered in favor of Bourne Valley Court Trust in the Trust’s action to quiet title on real property that it had acquired after the property had been foreclosed by a homeowners’ association. Nevada Revised Statutes section 116.3116 et seq. strips a mortgage lender of its first deed of trust when a homeowners’ association (“HOA”) forecloses on the property based on delinquent HOA fees. The panel held that the Statute’s “opt-in” notice scheme, which required a HOA to alert a mortgage lender that it intended to foreclose only if the lender had affirmatively requested notice, facially violated the lender’s constitutional due process rights under the Fourteenth Amendment to the Federal Constitution. The panel held that the “state action” requirement for purposes of constitutional due process was met by the Nevada Legislature’s enactment of the Statute, which unconstitutionally degraded the mortgage lender’s interest in the property. The panel remanded for further proceedings. Judge Wallace dissented because he would hold there was no state action, and because the Statute satisfied due process by incorporating another provision in the Nevada Revised BOURNE VALLEY COURT TRUST V. WELLS FARGO 3 Statues that required HOAs to provide written notice to a mortgage lender.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.