Kehoe et al v. Aurora Loan Services LLC et al, No. 3:2010cv00256 - Document 24 (D. Nev. 2010)

Court Description: ORDER DENYING Ps' 6 Motion to Remand. FURTHER ORD GRANTING with prejudice D Aurora Loan Services LLC's 5 Motion to Dismiss the Complaint. FURTHER ORD GRANTING Ps' # 20 Motion to Enlarge Time : Ps' response to D Quality Loan Service Corporation's # 19 Motion for Summary Judgment due by 11/6/2010. FURTHER ORD DENYING Ps' # 20 Motion to Certity Question to the Nevada Supreme Court. Signed by Judge Robert C. Jones on 10/20/2010. (Copies have been distributed pursuant to the NEF - DRM)

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1 2 3 4 5 6 UNI TED STATES DI STRI CO URT CT 7 DI STRI O F N EVADA CT 8 JOHN KEHOE and KATHY KEHOE, 9 1 0 Kehoe et al v. Aurora Loan Services LLC et al Pl nif aitfs, v. ) ) ) ) ) ) 3: cvO0256- RAM 1O- RCJ- 1 l 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 20 21 AUROM L OAN SERVI L G QUALI ) CES L TY ORDER LOAN SERVI CORP, M MCGI and ) CE JI LL DOES 1t u 10,i usi hr ncl ve, ) ) Def dant en s. ) ) ) Curentybef et Couri Deendan Aur aLoanSer cesLLC' (Aur a' Moton r l or he ts f t or vi S ' or ' i ) t Di s t Compl nt( fl on May5,2010.Pl nt sJohn Kehoe and Kat Kehoe o smis he ai #5) i ed ai i g hy (ol tvel r eredt her nas' ai if 'fl anOpposii ( onJune 11, 0,and c l i y ef r o ei Pl nt s' i ec f ) ed ton #15) 201 Aur a fl a Repl ( onJune21,2010. or i ed y #18) Al bef et Couri Pl ntfs' i t Remand(/ fl onMay7, so or he ts ai if Moton o /6)i ed 2010.Aur a or fl an Oppost ( 2)onJune 1 2010,and Def i ed ii #1 on , endantQualyLoanSewi Coror i i t ce p aton (QuaIy' fl a Joi ( on June 2,2010. ' i'i t ) ed nder #13) 22 Al o bef e t Cour i Pl nt s' M oton t Enl ge Ti e and M ot t Ceriy s or he t s ai i s i o ar m i o on t f Doc. 24 23 Queston t t Nevada Supr i o he eme Cour ( t #20)fl on J y 23,2010. Qualy fl an i ed ul 1 i i t ed 2 Opposii ( )onAugus 6,2010, Pl ntf fl a Repl ( onAugu 16,2010. 4 ton #21 t and ai is i f ed y #22) st 25 The Cour hear or ar enton t m otons on Sept ber27, 0. t d al gum he i em 201 26 27 BACKG RO UND Pl ntfs ar f m er ow ner ofpr ai if e or s opery I ed at821 G oler Pass Road i I i t ocat f s n nclne 28 :Pl ntf s'm oton t enl ge tm e was fl i r ponset a M oton f S'm r z J ai if i o ar i ied n es o i or A na y udgm ent ( 9)fld b QtaiyonJ y 1 ,2 0. #1 ie y z lt ul 5 01 Dockets.Justia.com l Viage, l l Nevada.On Oct zo, ober 2006, ai if execut a pr i or eanddeedof r st Pl ntfs ed om ss ynot tu 2 w hi h I ed Fist M agnus Fi c i st r nanci Cor a i as t I al por ton he ender and M orgage El toni t ec r c 3 Regi r i Sy em s,I as t benefci y. The tus ee oft e deed oftustwas orgi al staton st nc. he i ar r t h r in l y 4 Fis A m erc Til but t benefc ar subst u ed Def rt i an te, he ii y it t endant Q ual y Loan Ser i i t vce 5 Cor aton(' iy' ast tust on Mar 5,2009.Aur aassumedt ser ci o t por i d t ' he r ee QuaI ) ch or he vi ng f he 6 I som etm e aferorgi i oan i t i naton. 7 At som e poi ,Pl ntfs f lbehi i t r m ont y m orgage paym ent and wer nt ai if el nd n hei hl t s e 8 alegedl negotatng wih Aur a t r w or t rdef t m odgage. Durng t tm e,on l y i i t or o e- k hei auled i hat i 9 Sept ber24, em 2009, u iy' agentr or a Notce ofBr h an De auland ofEl ton Q al s t ec ded i eac d f t ec i 1 t Cause Sal ofReal opery underDeed ofTr t O n M ar 1 201 Q ual y r ded 0 o e Pr t us . ch 0, 0, i ecor t 11 a Notce ofTr ee' Sal and Aur a pur hased t pr i ust s e, or c he opery a a tust s s e on M ar h t t r ee' al c 1 31,2010. Pl ntss r eied not o t 2 ai i ec v i f hese r or ngs vi cerii m ai ce ec di a t ed f l . 13 O n M ar 31,2010,Pl ntfs com m enced t s acton by flng a Com pl ntf Q ui ch ai if hi i ii ai or et 1 Til i sat cour. Pl ntfsfl suiagai tt I seri ( or ,t tust ont 4 te n t e t ai if i ed t ns he oan vcer Aur a) he r ee he 1 deedoftustQualy)andt ' i ' t f ecl es e( m McGi) Pl ntf Compl nt 5 r ( i , he ' erathe or osur al Ji t cr I. ai is' I f ai 1 assers t ee causes ofacton. The fr cause ofacton appear t alege t Def 6 t hr i ist i s o l hat endant s 1 f l t s if t notc pr si underNevada I whent conduct a nonu ci 7 ai o atsy he ie ovi ons ed aw hey ed jdi al 1 f ecl e on t pr t The second c 8 or osur he opery. ause ofac i appear t as ton s o sed a vi aton oft e ol i h 1 Nev 9 ada Deceptve Tr Pr iesAc by De endant ualy.Fi l t t r caus ofact i ade actc t f Q i t nal he hid y, e i on 2 as 0 seds a vi aton of he i pl cov ol i t m i ed enantofgood f t and f r ai h ai deal by Def i ng endant ur a. A or 21 Folowi t fl oft Com pl nti t s m ater Aur a r oved t case t f l ng he ii ng he ai n hi t , or em he o eder al 2 coud ont gr 2 he oundsofdi si j iditon.Aur aas t t t e i compl e di si ver t urs ci y or sers hat her s et ver t y 23 bet weent pari becauset i vi def he tes he ndi dual endan , m McGi, faudul l j ned. t Ji l was r l ent oi y 24 Pl ntfs now seek r and of t s case t st e coud. I addii Aur a has m oved t ai if em hi o at n ton, or o 25 di ni s t c ai s ass sr s he l m eded agai t i ns t . 26 DI SCUSSI N O 27 1 M oton t Rem and . i o 28 Pl ntfs ar t t scasewas i opery r ai if gue hat hi mpr l emov fom sat cour. ( i t ed r t e t Moton o 2 l Remand ( at2) Accor ng t Pl ntf t e ' e Nevada p teson bot si oft s #6) . di o ai is, her ' f ar ari h des hi 2 mater s t e i no dier t j idi i ' ! at3. Mor er Pl ntf as tt t t , o her s v si urs ct ' #. y on. eov , ai is ser hat he f 3 c ai i pr cat onst eI anddoesnotars underf alaw.Lompl nts edi ed at aw, ie eder I d. 4 l r n esponse,Aur a ar or gues t t e 's com pl e di siy because Def hat her i et ver t endantJi m 5 McGi wasfaudul l oi '( nt Mott Remand(/ at1) Ac digt Aur a, l l r entyj ned. Opp' o .o /12) . cor n o or 6 McGi' j nderwas faudul bec ls oi l r ent ause Pl n if do notasser any c e ofac i agai t aitfs t aus ton ns 7 hi .Rat ,he i mer yi ii i t Compl ntast ' i 'att f ecl esal !. m her s el dent ed n he f ai he ' er he or osur e. # cr 8 at2. Because Pl ntfs do no asser any f ualalegatons orcl m s f r i agai M cG i ai if t act l i ai or elef nst l l 9 Aur a ar or gues t he i a sham def hat s endantand hi cii s tzenshi does noti pactdi siy. p m ver t 10 ' m oton t r and i t pr A i o em s he operpr ocedur f chalengi r oval' M oor Thom as e or l ng em . ' e- 11 v. ask Ail I ,553F. 1241,1244 ( h Ci. Al a ri nc. nes, 3d 9t r2009) dr r . dhe emovalsat e i srct t ut s ti l y 12 const ued and any doubtaboutt rghtofr ovalr r he i em equies r uton i f r esol i n avorofr and. em ' ' 13 ! 'tst bepr umedt ac eI out de(he)i t j i ci ( t f al tl #. ' i o I es hat aus i es si t I ed ursditon ofhe eder cours mi . 1 andt bur ofesabl ngt contar r supont paryass tngj iditon. Abr 4 he den t i shi he r y est he t eri urs ci ' eqo ' 1 Abr v.Dow Chem. ,443 F. 676,684( hCi. 5 eqo Co. 3d 9t rzoo6lqu i Kokk t otng onenv.Gu di ar an 1 Lie I Co.ofAm.511U. 375,377,114S. .1673,128 L. 2d 391( 6 f ns. , S. Ct Ed. lgg4laler i t t at ons 1 i orgi ) The T r pr 7 n i nal. ' ong esumpton agai r st i nst emov j idi i meanst t def alurs ct on hat he endant 18 al ways has t bur of est i ng t r ovali pr he den ablshi hat em s oper'and t t coud r ves aI , hat he esol I 1 am bi t i f ofr 9 gui n avor emand t sat cour. Gaus v.Mi l ,980 F. 564,566 ( h Ci. y o te t l nc. es, 2d 9t r 20 1992) . 21 A . D i siy of Cii enshi ver t tz p 22 Di si j iditon i gover by28 U. C.j 1 ver t urs ci s y ned S. 332.Acc di t t sat e,t or ng o hat t ut he 23 di rc c t d l aveorgi j idi i o aIci l tonswher t materi contover stit ours ' h shal i nalurs cton f I viaci e he t n r sy 24 exc eedst sum orval of$75, ' i bet he ue 000.and s ween' tzens ofdif en St es. 28 U. C. ' i ci fer t at ' ' S. 25 1332( .Alhoughanaci maybe r a) t ton emov t f al t ywher t e i c et ed o eder couronl e her s ompl e 26 di siy ofcii ver t tzenshi ' p, d excepton t t r r entf com pl e di siy i w her a one i o he equiem or et ver t s e 27 non- vere def di s endanthasbeen'r faudul l oi 'Hunt v.PhipMori USA,582 F. ent ned.' er yj l i rs 3d 28 1039, 1043( hCi. 9t rzooglqu ig Mori v.PrncessCr ses,I , F. 1061,1067( h t otn rs i ui nc.236 3d 9t 3 l Ci.2001). Joi i faudul 'ft pl nt ff l t sat a cause ofact agai a r ) nder s r ent ' he ai i ai o t e i f s i on nst 2 r dentdef esi endant and t f l e i obvi acc di t t setl r es of t st e. , he ai ur s ous or ng o he ted ul he at ' ' 3 Hunt ,582 F. at1 (nt nalquot i and ci i omied) l such a c er 3d 043 i er atons t ons t . n at t ase,'he ' t 4 di rct cour m ay i e t pr sti t gnor he esence of t def hat endant f t pur or he pose of est i ng abl shi 5 di siy. .!. ver t ' # 6 I t s case, t Cour fnds t n hi he t i hat r oval w as pr em oper because t non- ver he di se 7 def endantJi McGi, faudul l oi TheCompl nti ii McGiasar dent ,m l was r l entyj ned. ai dentfes l l esi 8 ofNevada and st es t he Ss t per who cred t f ecl e sal on M ar 31 2010 at hat s he i son i he or osur e ch 9 on behal ofte benefci y. ( f h i ar ' Compl( at7) Pl ntf sat t aferMc lci t .#1) . ai is t e hat t f Gi red he l 1 f ecl e on t rhouse,t asked who t benefci y was and M cG ilst ed he di not 0 or osur hei hey he i ar l at d 1 k 1 now . No ot f s ar aleged as t M cG i . Thus,alhough M cG i i r er her act e l o l l t l s ef enced i t l n he 1 Com pl ntas t z i 'att f ecl e sal he i notnam ed i any oft causes ofacton 2 ai he ' er' he or osur cr e, s n he i 1 aleged by Pl ntfs. 3 l ai if 1 4 I t rm oton t r and,Pl ntfs ar t M cG ili nota sham def n hei i o em ai if gue hat ls endantbecause 15 hi I of know l s ack edge r egar ng t benefci y was an 'regul iy'i t f ecl e sal di he i ar ir art ' n he or osur e 1 undersat I ( .orRemand ( at6) 6 t e aw. Motf #6) . 1 7 Despie Pl ntfs'ar t ai if gum ent t t contar Pl ntfs have not assered any cl m o he r y, ai if t ai 1 agai M cG ili hi i vi 8 nst l n s ndi dualcapaciy. As not i t f egoi Pl ntfs f lt nam e t ed n he or ng, ai if ai o 1 M cG ili any of t rcauses of acton. M or 9 ln hei i eover t , hese cl m s appear t r at sol y t ai o el e el o 20 Qualy and Aur a. I addion,Pl nt f hav pr ded n aut iy t a creri I e f i t or n t i ai i s e ovi f o hort hat i s i abl or 21 wr f f ecl e i Nevada f f l t n ong ul or osur n or aing o ame t benefci y f l ng a non-udi al i he i ar ol owi j ci 22 f ecl e s e. Pl ntfs have al o f l t as tany dut owed t t or osur al ai if s aied o ser y o hem b M cG i on y l l 23 whi Iabiiy coul be pr cat ch i l t d edi ed. Because Pl ntfs have notassered a cause of acton ai if t i 24 agai McGi, sct nst lhi ii l zenshi maybei edf p gnor orpur posesof er ni di si ursditon. det mi ng ver t i ci yj 25 I i M cG il cii gnorng l' tzenshi t r ai ng pari ar com pl el di se and r ovalw as s p, he em ni tes e et y ver em 26 appr i e. oprat 27 B. Am ounti Contr n over sy 28 I addii t t f egoi Pl ntff al ar n ton o he or ng, ai i s so gue r and i r r because t em s equied he 4 1 am ounti contover y does notexceed $75, n r s 000. Acc di t Pl n if i t rCom pl n , or ng o aitfs,n hei ait 2 t pl act damages 'n exc s of $1 000, bu I s t $75, i an am oun hey ead ual ' i es 0, t es han 000 n t 3 accor ngt pr att tmeo ti agaistQualyandAur a. ( di o oof he i f ral n i t or ' Compl( at15) Aur a, ' .#1) . or 4 on t ot h he her and, guest he amounti contover exc ar hatt n r sy eeds $75, bec e Pf ntfs 000 aus ai if 5 ar seekng t setasi a f ecosur sal f pr t pur hased f mor t $981, e i o de or l e e or opery c or e han 000. 6 ( n t Mot t Remand ( at4) Ac di t Aur a,Pl ntfsar seekng t undo a Opp' o . o #12) . cor ng o or ai if e i o 7 tansact ' t nearyone mii dol s. 1r i t h on wor l lon l ' #. l ar ' 8 'n act s ngdecl at yorij i r i ,ti welesabl ' i eeki I ons ar or n unct el i s l t i t at he amount ve ef shed h t 9 i c r s i meas edbyt val o t obj oft Ii i 'Cohnv.Pet tI , n ontovery s ur he ue f he ect he igat ' t on. smar,nc. 1 281 F. 837,841( h Ci.zoozlquotng Huntv.W ash.St e Appl Adv .Comm' 432 0 3d 9t r t i at e er n, 1 U. 333,347,97S. .2434,53 L. 2d 383( 1 S. Ct Ed. 1977). It prmar pur ) f he i y pose o a I ti f awsui s 1 t enoi a b fom s l ortansf rng pr t t t pr 2 o j n ank r elng r eri opery,hen he opedy i t obec oft i s he j t he 1 Ii i Reves v.W el Far Bank,N. ,201 W L2629785 * ( D.Calzololctn 3 igaton. t l qo s A. 0 4 N. . tiig 1 Gari e v.W el Far Bank,483 F, 1 4 fnkl l no s 2d 074,1076 ( h Ci,1973),s al Cabral v. 9t r ) ee so . i es 1 Aur a L Sers. 2010 W L 761081 * ( D.Cal zololhol ng t t obectoft 5 or oan v , 3 N. . t di hat he j he 1 Ii i wast pr 6 igaton t he opedyt pl ntfs he ai i oughtoenoi t def f t j n he endan fom selnglHenderon tr l ; i s 1 v. i arMorn. . C, 7 Natonst t Co.LL 2008W L3 02374*1( . W ash. W D. zoo8lhol ngt t obj t t di hathe ec 1 oft Ii i wast pr 8 he igaton t he opedyt pl ntf s he ai if oughtt enoi t def o j n he endantfom selngata r l i 1 non-udii f ecl e s e) ' en i t pr 9 j cal or osur al . d Ev f he opedy atisue has aleady been s d i s r ol n 20 f ecl ebyt def or osur he endant...hepr t maystlbet obj oft li i whent t opery il he ect he igaton t he 21 pl nt suesf ij ie r i . Reyes, 0W L2629785* ,s al Del v.Bankof ai i ; ornunctv el ' ef' 201 5, ee so qado 22 Am .Cor ,2009W L 4163525 * ( D.Cal2009) I Del n. 6 E. . . n qado,t pl ntf ent ed it a he ai if er no 23 deed oftustwih t def r t he endantt secur is pur o et chase ofa hom e,t def t on is I hen auled t oan 2 payment andt def 4 s, he endantI ers dt pr t i an j ci f ecl epr at ol he opery n on-udi alor osur oceedi ng. 2 2009 W L 4163525 * The def 5 2. endanthad aleady s d t pl nt fs pr r ol he ai i f opery w hen t t he 26 pl ntffl suiseeki damages,decar or andij tver i ,i udi anor t set ai ifi ed t ng l at y, nunci el ncl ng ef dero de he e he opery. = 27 asi t sal oft pr t $ .The cour r ed t t obj toft Ii i wast t ul hat he ec he igaton t he . 2 f ecl pr t 1=at* g or osed opery. #. 6. 5 1 Based on t f egoi t Cour fnds t t am ounti contover exceeds t he or ng, he ti hat he n r sy he 2 j i ci I t I c sseekng ij ie r i fom af ecl esal t val oft ursditonali . n ase mi i nunctv el r ef or osur e,he ue he 3 pr opedyati i t obec oft Ii i f t purosesofdet mi ngt amounti ssue s he j t he igat or he p t on er ni he n 4 contov sy.I t s mater Pl ntfs ar seekng t undo a non-udi alf ecosur sal i r er n hi t , ai if e i o j ci or l e e n 5 whi t pr t wass df appr mat y$981, ch he opery ol or oxi el 000.Becauset obectoft Ii i he j he igaton t 6 i worh sgnii l mor t $75, t am ounti contover yr r s t i fcanty e han 000,he n r s equiementhasbeenmet 7 and t s case was pr hi opery r oved. l em 8 Thus,heCourdeni Pl ni motont r t t es aitfs' i o emand.TheCourh di st ursditon t as veri i ci yj 9 over t s m ater i t t pari ar di se and t am ount i contover exceeds hi t n hat he tes e ver he n r sy 1 $75, 0 000. 11 I. M oti t D i i I on o sm ss l2 Aur a fl a m oton t di i on t gr or ied i o sm ss he ounds t t causes ofacton i Pl ntfs' hat he i n ai if 13 Com pl ntf lo st e a cl m upon w hi r i can be gr ed.Accor ng t Aur a,Pl ntfs ai ait at ai ch elef ant di o or ai if 1 haveas 4 sededt cl msf r i agai i:1)qui ttebasedonwr gf f ecl e, wo ai or el ef nstt( eti l on ulor osur and 1 ( vi atono t dut ofgoodf t andf r i Aur asat t t ecl msf r i 5 2) ol i f he y aih aideal ng. or t es hathes ai orel ef l hav no basi i Nevada I and s d be di ssed. ( .t Di ss ( at2) I 6 e sn aw houl smi Mot o smi #5) .n l r 7 esponse, Pl ntff st e t t ai i s at hat hey have assered vald ceuses of acton agai Aur a t i a i nst or 1 bec 8 auseAur a i tat af ecl et S d n c ywihst eI '( nt Mott or nii ed or osur hat' ot ompl t at aw. Opp' o .o di 1 Di ss ( at2) I addii Pl ntf as t t e was a conr ualr at 9 smi #15) .n ton, ai is sed hat her f tact el i p onshi 20 bet ween t padi gi ng rse t a dut ofgood f t and f rdealng w hi Aur a vi at he es vi i o y aih ai i ch or ol ed. 21 A. LegalSt andar d 2 2 W hen c dern a 12( ( moton t di ssf f l et sat a cl m,t cour onsi ig b)6) i o smi or aiur o t e ai he t 23 m ust accept as t ue aI m at i alegatons i t com pl nt as wel as al r r I eral l i n he ai l l easonabl e 2 i er 4 nf ences t m ay be dr n fom such al hat aw r l i egat ons.LSO ,L d. Stoh, t V. r 205 F. 1146,1150 3d 25 ( h Ci.2000) Such al i mus be c tued i t I mostf or e t t 9t r . l ons egat t onsr n he i ght av abl o he 2 n 6 onmovigpary.Shwar v.UniedSt es, F.d428, ( hCi. n t z t at 234 3 435 9t r2000) I gen alt . n er ,he 27 cour shoul onl l t t cont s oft compl ntdurng i r i ofa Rul 1 b)6) t d y ook o he ent he ai i t evew s e 2( ( 28 m oton t di i s. The Ni h Cicui however has expanded t cour' vi t al i o sm s nt r t , , he t ew o l s ow 6 1 consi aton ofdocum ent atached t t com pl nt docum ent i por ed by r er der i s t o he ai , s ncor at ef ence 2 i t compl ntormater ofj calnotce, t c eri t moton i o amotonf n he ai , t s udii i wihout onv t he i nt ng i or 3 summar udgment See Dur n v.Fis BosonCor ,815F. 1 1267( hCi.1 . yj . niq rt t p. 2d 265, 9t r 987) 4 5 The an ysi and pur e ofa Rul 1 b)6)moton t di ssf f l e t sat a al s pos e 2( ( i o smi or ai o t e ur 6 cai i t t t I sufi encyofa com pl nt Nav r v.Bl 250 F. 729,732 ( h l m s o est he egal f ci ai . aro ock, 3d 9t 7 Ci.2001) The c ts dexerie c i ,h r . our houl cs aut owev I pr on erand esumeagai di ssngan nst smi i 8 aci f f l e t s at a cl m .See Gii v. ton or ai o t e ai ur lcan Jamco Dev.Cor ,1 F. 246,249 ( t l p. 08 3d 9h 9 Ci.1997) To av d a Rul 12( ( dimi alt a c ai does notneed det l r . oi e b)6) s ss , hen, ompl nt ai ed 1 f ual l i 0 act al egatons;r her i m ustpl ' at ,t ead ' enough f s t st e a cl m t r i t i pl bl act o at ai o elef hat s ausi e 1 oni f 'Cl 1 t ace. emensv. ml chœsl Cor ,534 F. 1 s ' Dai er er p. 3d 017,1 ( hCi. 022 9t r2008)( i quotng 1 BelAtantcCor v. 2 l l i n. Twombl 550 U. 544,555,127 S. .1955,167L. 2d929 ( v, S. Ct Ed. 2007) , ' 1 Ash ofv.qbal U. - ,1 S. .1937, 3 cr t I , S. 29 Ct 1949, L. 2d868( 173 Ed. zooglst igt ' cli t atn hata a m 1 has f alpl biiy when t pl ntf pl 4 aci ausi l t he ai if eads f ual act cont t alows t cour t dr t ent hat l he t o aw he l r 5 eason e if enc t t def abl n er e hat he endanti I e f t micon tal si abl or he s duc l egedn. Even t ) hough 1 ' ai f t al i ' e notr r f a compl ntt p must under1 b)6) 6 d l acual l ons'ar det ed egat equied or ai o ass er 2( ( 1 consi aton,t f ualalegatons ' ust be enough t r se a rghtt r i above t 7 der i he act l i m o ai i o el ef he 1 specul i I elont assumpt tataIt alegatonsi t compl ntar tue( en i 8 atve ev , he i h Ihe l i n he on ai e r ev f 1 doubiuli f l'Twombl 550 U. at555.Addii l t pl ngshoul convi et 9 n act. ' v, S. tonal he eadi y, d nc he 2 court t f t pr demor t ' suspi onl laI l cogni erghtofacton. L= 0 thathe acs ovi e han . a ci of egal y zabl i i ' d. ' 21 B. W r ongfulFor osur ecl e 22 Pl ntfs'fr cause of acton i f w r ai if ist i s or ongf f ecl e. Accor ng t Pl ntfs, ul or osur di o ai if 2 al 3 t hough t r ei t r r Nev s at or n ies f a non-udi alf ecl e hey ec ved he equied ada t ut y otc or j ci or osur 2 pr 4 oceedi underNRS j1 080,hosenot f l t i udet ol ngif matont ng 07, t i ai o nci hef l ces ed owi nor i hat 2 wasr r byt deedoftus: 1)t amountoft def t ( t amountnec ar t 5 equied he r t( he he aul'2) he , ess y o 2 cur t def tanda dat cedai wi nwhi t cur ( t it def twer notcur 6 e he aul e n t hi ch o e;3)hatf he aul e ed, 27 t am ountdue undert not w oul be accel at and t t Tr ee woul conducta he he e d er ed hat he ust d 2 f ecosur s e;and ( Pl ntf rght t have enf c 8 or l e al 4) ai is' i o f orement of te s iy i er h ecurt nt est 7 1 di ontnued at any tm e bef e 5 day pror t t sal dat i t w er t m eet c sc i i or s i o he e e f hey e o edai n 2 condii z Based on t e al t ons. hes l eged notfcaton f l es, Pl nt f as ii i ai ur ai i s sed t t e wer f hat her e 3 subst i ir artes i t f ecl e pr antal regul ii n he or osur oceedi and t sal oft rpr ngs he e hei opedy shoul d 4 be vac t ed. 5 I is m oton, Aur a ar nt i or gues t t cl m ofw r hat he ai ongf f ecl e m ustbe di i ul or osur sm ssed 6 because t f ecl e pr he or osur oceedi w er pr ngs e oper under Nevada I . Alhough Pl ntfs aw t ai if 7 al l a v i y of pur ege aret poded eror Aur a st es t Q ual y and i agent s r s, or at hat i t t s ubst i l antal y 8 c ompl wih Nevada' n j cal or l e s at e. Accor ng t Aur a,al i ed t s on-udii f ecosur t ut di o or t hough t he 9 deed oftustr r t cerai i or aton be pr ded t Pl ntfs,i di notr r equied hat t n nf m i ovi o ai if t d equie t r hat I such i or aton be r or wi t not ofdef t Aur a st es t ' ai if hav not 0 nf m i ec ded t he i h ce aul. or at hat Pl ntfs e 11 aleged t Aur a nevergave t l hat or hem 1 notce caled f i ...t deed oftust onl t i he i l or n he r , y hat t 1 was noti t r or notc ofdef t' L=. 42 n he ec ded ie aul. d at 5. ' 1 3 I addii Aur a s at t atev i Pl n if wer c r tt t e had been a n ton, or t es h en f ai tfs e or ec hat her 1 f l e t com pl ih t r r ent oft deed oftust ' 4 aiur o yw t he equiem s he r , Nevada I does notm ake a sal aw e 1 i operbased onsucha vol i ' !- at5.Rat ,Aur a sat t i Neva a sal 5 mpr i aton. #. ' her or t es hat n da, e 16 m ay onl be setasi f f l e t subst i l com pl wih st ut y r y de or aiur o antaly y t at or equiem ent Aur a r s. or l st es t t s cl m shoul be di i sed bec 7 at hat hi ai d sm s ause t Com pl ntdoes notr se any vi e he ai ai abl 1 is e r g r n c mpinc wi NRS j 1 08 -h n nu calo e l u esa uea is e 8 s u s e a dig o l e t a h 07. 0 te o jdii f r cos r t tt ts u 19 i t s m ater n hi t . 20 I r n espon Pl n if as tt Def dant wer r r d t f l t Nevada se, ai tfs ser hat en s e equie o ol ow he 21 sat or s t ut y cheme f non-udi alf ecl e pr or j ci or osur oceedi ngs. Pl ntf st e t 'i i a ai is at hat 'l s f lt 22 cor st of Nevada I t a hom eow nerbe gi a r ner one aw hat ven easonabl opporuniy t cur a e t t o e 23 def tbe or a hom e i t aul f e s aken a ayi how ever i t s case,Pl n if assed t t notce w ' ' , n hi ai tfs hat he i 24 25 2P aygrph2 i t de doftus o t pr pe t p ovie t ttelnde $s l gi n i t r a 2 n he e r t n he o ry r d d ha h e r .hal ve otce o 2 Borore pnort a ee ai f l wi Boro rsbr a h ofa co na o a r e nti t s 6 r r o cc lr ton glo ng r we ' e c ny ve nt r g e me n hi Se u yl tz nt, ( .oDlmis( a Ex. p.1 .Thenoi s lse iy ()t dea t c nt nsnme . Mott s s #5) t A, 3) s tce hal p cf:a he ful, . 2 ( t a in r q r d t qlet dea t ( )ad e n ls t a 3 d ysfom te c t t notc i 7 b) he cto e uie o tr he ful; c at, ot e s h n 0 a z h l e he ie s a gve t Bo r , whlh t ds a l mus beg le a d ( t tf it et c et dea to or i n o rowm'by c he f ut t trd; n d) ha alt o ur he ful n r 28 bef e t dat s ci i i t notce m ay r ul l a el ton oft s s s ted by t s Securt or he e pe fed n he l es t n cc em i he um ectr hi iy I e estand s e oft Pr t J Thede d do sn s cf ho t sno iei t begi n. nt r al he opery. #z e e ot pe iy w hi tc s o ve . 8 1 ofbr handel i t s l dnotd f heamountneededt r nsat t I '( n eac ect o eldi d on speciyt o ei t e he oan. Opp' ' 2 t Mot t Di s ( at4) Becaus idi notspeci t amount Pl ntf ass tt o .o smis #15) . et d f hat y , ai is er hat f 3 t I hey acked notce ort opporuniy t cur underNRS j 1 080. I addii Pl ntfs i he t t o e 07. n ton, ai i 4 ar t t ' i oft ust sal w as accom pani by so m uch extaneous m at i as gue hat he d ce not r ee e ed r eral o t rualy ngl ' #. 5 t m ake i vit l m eani ess. ! at8.Ac di t Pl ntfs, i s t 'o muc cor ng o ai if Qualy enthem ' t s h . 6 paper k'w ih r wor ' t espectt t f ecl e t dhey coul notm ake heads nort l ofi'and o he or osur hat ' t d ais t 7 t iwast amountt So not ataI' J= hatt ant o' n i ce l' #. . 8 I t s case,Pl ntfs have f l t st e a cl m f w r n hi ai if ai o at ed ai or ongf f ecl e. I t ul or osur n he 9 Com pl n , ur a i n i ii orm entoned i t cause ofac i Rat , he c e of ai t A or s ot dent ed f i n hat ton. her t aus 1 ac i appear t be diec ed sol y atQ ual y. Pl ntfs r 0 ton so r t el i t ai if epeat y s at t Def edl t e hat endant 1 Q ual y f l t pr de t i or at r r by t deed o tustand speci c l t att l i ai o ovi he nf m i equied t ed on he fr f al h he i y 1 notceofdef t el tont sel' e edandfedbyQualf f l t c ai t al 2 i auland eci o l' par pr i l i ai o ont n he l t ed eged 1 nec sar if mat ( 3 es y nor i Compl( )atEx. 1llemphasi added) TheCompl nt on. .#1 A, t s . ai doesnot 1 asser t Aur a f l t m ake t necessar di osur ort 4 t hat or aied o he y scl es hatAur a was i ved i t or nvol n he 1 pr 5 epar i and fl of t n i e of def t Bec aton i ng i he otc aul . ause Pl n if f lt ass tany f t ai tfs ai o er ac ual 1 al 6 l i agai Aur a as t w r ulor osur , hi cl m i di i ed pur egatons nst or o ongf f ecl e t s ai s sm ss suantt Rul o e 1 1 b)6) 7 2( ( . 1 8 l addion, b n t i ased on t al i i t Com pl nt and t s at or notces he l ons n he egat ai he t ut y i 1 r ded wih t W ashoe Count Recor ' ofi t Courtfnds t t f ecl e 9 ecor t he y ders fce, he i hat he or osur 2 pr 0 ocedur i t sc e c i wi NRS ï 107. 3 e n hi as ompl ed t h 080. 21 Nevada I pr des t a deed oftusti an i r entt m ay be used t u aw ovi hat r s nst um hat o secur e 2 t peror 2 he f mance ofan obl i ort p i on he aymen o any debt' NRS 5 107.20. W hen a gat tf . ' 0 23 debt def t 't cr t benefci y m ay r or auls he edior i ar esod t is securt i a t ust s sal as a m eans ot iy n r ee' e 24 ofs i yi te debt ' obl i NRS j 107. atsf ng h ors i on. gat 080. 25 26 3Alhoz ac tsrve o a1 4)moto t dimisi ge rly:i tdt t c tns t tgh our' e iw n 21)6 in o s s s neal tmie o he one t f of t com pl nt, t c t may al consder docum ent atached t t com pl nt docum ent he al ,, he our so i s t o he ai s 27 i o pol tdbyr fr nc i t c mpli k o ter of u cil iewiho c nve t t emoto nc r - e a ee e e n he o an rma t s j di a notc t ut o ri h ng in i oamoinf smmayj me .Se t r i v. ls Boso Co , 51.d1 65, 267(t l. nt to or u r udg nt e hlnn: F' t tn m.81 72 2 1 9hC' r r 28 1 7) Thesa to. notc sa erf r nc diltl co ant 98 . ttt l le r ee e e r le mpli . ty 9 1 The pr edur f c oc e or onduc i a t us ee' f ecl e s e i Nevada i s f l i NRS tng r t s or osur al n s et orh n 2 j107. Thef ecl epr 080. or osur ocessi commenc byt r or ngofanotc ofbr s ed he ec di ie eachand 3 4 5 6 7 el i t s lbyt tusee. NRS j 107. 2)c) Afert notc ofdef ti r ded, ecton o el he r t 080( ( . t he ie aul s ecor t tuseemust tt ee monhs.NRS 1 1 080( ( .Thetuseemus t gienot he r t wai hr t O7. 2)d) r t then v i ce oft tme and pl oft s e.NRS 1 080( . he i ace he al 07. 4) NRS j 107. 3) pr des t t notce of def t and el i t s l mus 080( ovi hat he i aul ect o el on t 'dl rbe t de i ency i peror d esc i he fci l n f mance orp aymentand may cont n a notc ofi entt ai ie nt o 8 decl e t entr unpai bal ar he ie d ance due i accel aton i per it by t obl aton secur by f er i s m ted he i i g ed 9 t deed oftust ... NRS j 107. 3)a) I addion,i te pr he r . ' O80( ( . n t f h opedy i a r dental i s esi i 10 f ecl e,t notce ofdef tand el i t sel m ustcom pl w ih t pr si ofNRS or osur he i aul ecton o l y t he ovi ons 1 j 107. 1 087. NRS j 1 080( ( . NRS 5 107. pr des t a notce ofdef tand 07. 3)b) 087 ovi hat i aul 1 el i t sel m usti ude t physi addr oft pr 2 ecton o l ncl he cal ess he opery and t cont i or aton t he act nf m i 1 of t t ust or t per 3 he r ee he son conductng t f ecl e w ho i aut i i he or osur s horzed t pr de o ovi 1 i or i r atngt tef ecl est usoft pr 4 nf maton el i o h or osur at he opedy.NRS : 107. 1)b) 087( ( . 1 5 Fi l NRS 107. 5)sat t a 'al made pur nal y, 080( t es hat ' e s suantt t ssecton maybe o hi i 1 decl ed v d by any cour ofcom pet j i ci i t count wher t s e t pl ' 6 ar oi t ent ursdit n he on y e he al ook ace' l7 i t 'r ee orot per aut i t m ake t sal does notsubst i l com pl wih f he t ust her son horzed o he e antaly y t 18 t pr si oft s secton....' he ovi ons hi i ' 19 Her Pl ntfs asser t t f ecl e sal shoul be decl ed voi because t e, ai if t hat he or osur e d ar d he 20 notce of def t and el i t sel di n cont n i or at r r i t notce i aul ecton o l d ot ai nf m i equied n he on i 21 pr si oft deed oftust Speciizly,Pl ntfs alege t t 'aiur t adher t t ovi ons he r . fc l ai if l hat he d l e o f e o he 22 notce pr si cont ned i t deed oft ust' i ovi ons ai n he r 'constt ed a subst i ir art f w hi iut antalr egul iy or ch 23 t f ecl e sal shoul be vacat he or osur e d ed. 24 l t s mater t Courtgr s Aur a' m oton t di i t w r n hi t , he ant or s i o sm ss he ongf f ecl e ul or osur 25 cl m bec ai ause t al he l i i Pl nt f Com pl ntf l o est i t Def egatons n ai i s' f ai ait abl hat endant di not sh s d 26 c ywiht r r ompl t he equiemensofNRS 55 107. and 1 087 i conduci t f ecl e t 080 07. n tng he or osur 27 sal on t pr e he opery.Alhough t deed oftustm ay have i uded notce pr si f l ng t t he r ncl i ovi ons olowi 28 a def t Nev aul, ada s at or I does n r r hatt t ut y aw ot equiet hose notce pr si be i u i ovi ons ncl ded i t n he 10 l notce ofdef tfl wih t count r der. Pl ntfs ar i aul ied t he y ecor ai if gue t because t notce of hat he i 2 def tdi n i u t am ountPl nt s m ust t cur t def t t notce was f al aul d ot ncl de he ai i l pay o e he aul, he i at l y 3 m i eadi and noti subst i com plance w ih Nevada I . However Nevada I does sl ng n antal i t aw , aw 4 notr r t att am ountt cur t def tbe r ded wih t notce ofdef t Rat , equie h he o e he aul ecor t he i aul. her 5 Nevada I r r t he notce ofdef tcont n t physi addr oft pr aw equies hatt i aul ai he cal ess he opery and t 6 t cont i or aton oft tust orper conductng t f ecl e w ho i aut i he act nf m i he r ee son i he or osur s horzed 7 t pr de if maton r atng t t f ecl e st us of t pr ery. See NRS j o ovi n or i el i o he or osur at he op t g 107. 1)b) 087( ( . 9 Thus,because t or osur pr hef ecl e oceedi on Pl ntfs' opery com pled wih Nevada ng ai if pr t i t 1 l , her i no gr 0 aw t e s ounds t v at t sal oft pr o ac e he e he opery, Aur a' m oton t di i t t and or s i o sm ss he 11 w r ongfulf ecl e cl m i gr ed. or osur ai s ant 1 2 C. Dut ofG ood Faih and Fai Dealng y t r i 1 3 Pl ntfs' e ass t a c ai if hav ered ause of ton f vi aton oft dut o good f t an f r ac i or ol i he y f aih d ai 1 dealng agai Aur a. Accor ng t Pl ntlsI Aur a w as t ser ceroft rmorgage and 4 i nst or di o ai i or he vi hei t 1 di assum i t dutes as s vceroft n e and en or oft deed oftust Aur a 5 ln l ng he i er i he ot f cer he r , or 1 ass ed any and aIoft dutes and obl i t r bet 6 um I he i i ons hat an ween t Pl ntfs and M agnus gat he ai if l (he orgi I 7 t i nalender,when t ) hose document wer ex ut ' ( s e ec ed. Compl( atEx.A,14) ' . #1) . 1 Pl nt#s st e t i 2009,Pl n if f d i dif tt m ak t r m odgage p 8 ai i at hat n ai tfs oun t fi o cul e hei aym ent an s d 19 ent ed dnt l hy negotatons t have t am ountr er ' o engt i ii o he educed so t coul afor i,whi hey d f dt ch 20 i ol ed t tansm isi ofl geam ount of nv v he r s on ar s paper kbac and f t bet wor k orh ween t pari ' he tes. ' 21 $ at11.Pl nif ar t Aur adi not i goodf t durngt modiiatonpr =. aitfs gue hat or d actn aih i he fc i ocess, . 2 and t Aur a f l do m odi t l i s 2 hat or ai ' ed t f he oan n uch a way as t m ak i a'or e f t y o e t dabl or he 2 Pl ntfs. J=.Bas ont f egoi Pl nif al t Aur ai I ef br 3 ai if ' # ' ed he or ng, aitfs l hat or s i or eachi t ege abl ng he 24 covenantofgood f t and f rdealng. aih ai i 25 Aur a movest di i t s cause ofacton on t gr or o sm ss hi i he ounds t her ' as no contact hatt e d w r 26 t whi Aur aand ( ai if wer bot pari '( .o Di s ( at7) Aur a sat o ch or Pl nt sl e h t ' Mott smis #5) . or t es f es. 27 t Pi nt s i r ty asser t as t l s vi ,Aur a ass ed aI oft l hat ai i ncorec l f t hat he oan er cer or um l he enders ' 28 dut i Aur a s at t i i r e as ser cer i w as m er y peror i t adm i statve es. or t es hat n t ol s vi , t el f m ng he ni r i 11 l f i ofr ei ng paym en s f om Pl ntfs. I di notac r t I fom i orgi or uncton ec vi t r ai if t d quie he oan r t i nat . s 2 Su a r atonshi acc di t Aur a i notcontact i nat e. Because t e w as no ch el i p, or ng o or s r ual n ur her 3 underyi c r u r atonshi Aur a st es t i c l ng ontact al el i p, or at hat t annot be I e f br i abl or eachi t ng he 4 i pl c enantofgood f t and f rdealng. I addii A ur a st es t Pl nt f have m i ov ed ai h ai i n ton, or at hat ai i s f 5 f l t st e a cl m f br aied o at ai or each oft i pl covenantbecause Pl ntff r ved ever hi he m i ed ai i s ecei yt ng 6 t wer entt t un t I agr hey e il o der he oan eement-specii l money t pur ed fcal y, o chase t subect he j 7 pr t !.at7.Aur a sat t iwas Pl ntfst br opery. # . or t es hatt ai i hat eachedanyal f l contacual eged r t . 8 agr ent eem when t heyst pay ng t rm orgage.As such, or s at l t s c af m ust op i hei t Aur a t es hat hi l m 9 be di i sm ssed. 1 0 11 dti w el est i ' s l abl l shed w i n Nevada t ever c r i pos upon t e contac i t hi hat y ontact m es h r tng pari t dut ofgood f t and f rdealng. Hit Hot s Cor v.But Lew i Pr ,I , tes he y aih ai i ' lon ' el o. ch s od. nc. l 1 Nev.1043,1046,862 P. 1 ( 2 09 2d 207 Nev.1993) ' henone p peror a c r i .' W ady f ms ontactn 1 a mannert i unf t ulo t pur 3 hat s aihf t he pose oft c r and t j tfed expect i oft he ontact he us ii atons he 1 ot pary ar t deni : dam ages m ay be a ar agai stt pary w ho does notac i 4 her t e hus ed w ded n he t tn l good f t ' Hi on Ho el Cor v. t Lewi Pr , nc. 1 Nev. 5 aih. l ' t t s ps. Bu ch s ods. l , 07 226, 232, 808 P. 91 2d 9 1 ( 6 Nev.1991) A br . eachoft covenantoc s'wj e t t msofa c r ar Ier l he cur ' her he er I ontact e i al t y 1 c pl w i bu one padyt t c r del at y contavenest i ent and spii of 7 om i ed t t h o he ontact i ber el r he nt i on rt l t contac . .'!=at922- l Nev onl aparyt acontac c beI ef br 8 he r t . . #. 23. n ada, y to r t an i or each abl he y ai h ai i 1 oft dut ofgood f t and f rdealng. See 4 9 #. . 20 As not i t f egoi Pl ntfs asser t A ur a,as t rI ser cer assum ed ed n he or ng, ai if t hat or hei oan vi , 21 t dutes of t l he i he ender under t deed of tus . How ever cours have h d t a I he r t , l el hat oan 22 ser i , vcer such as Aur a, s nota pary t t deed oft us . See Conderv.Hom e Sav. Am . or i t o he r t of ' 23 68O F. Supp. 1168,1174 ( D. .2010) s alo Ruf v. ' Seri nq Co.2008W L 2d C. Cal , . ee s f Am. s vci , 2 1 4 830182( . Pa. W D. zoo8lhol ngt aser ceri ' aparyt t morgager.Mor er t di hat vi s not t o he t ) eov , 25 t f tt Aur a ser i ed Pl nt fs I does notc eat contact prvi bet een Aur a he ac hat or vc ai i ' oan f r e r ual i t w y or 26 andt Pl ntfs.Lomb v. he ai if ov SCME Morc. t Banker 2009W L1457738* ( D.Cal2009) s, 5 N. . . 27 I t s m ater because Pf ntfs have f l t est i t t e was an underyi n hi t , ai if aied o abfsh hat her l ng 28 contac ualr atonshi bet r t el i p ween Pl ntfs and Aur a, or c ai if or Aur a annot as a m aterofl ,be , t aw 1 2 1 l e f v ol i oft c enantofgood f t and f rdeal i abp or i aton he ov aih ai i l addi on,Pl ntfs h ng. n t i ai if ave 2 f l t asser t any underyi contacti uded a rghtt m odii i ai o ed t hat l ng r ncl i o fcaton. I t s r d, n hi egar 3 Pl ntfs assed t Aur a contavened t i enton and spii oft contactby f lng t ai if hat or r he nt i rt he r aii o 4 negotaton a m odii at on t r I an. Because t e w as no cont ac ual rght t ii fc i on hei o her r t i o 5 m odii i Pl ntfs have f l t est i t Aur a act i a mannerunf t ult t fcaton, ai if aied o ablsh hat or ed n aihf o he 6 contact As such,t s cl m i di i r . hi ai s sm ssed. 7 D. Leave to A m end 8 Ator ar al gum ent Pl ntf s r , ai if equest I ed eave t am end t rCom pl nti or t st e o hei ai n der o at 9 a cl m f beach of ai or contac bas on a pari paton agr ent er i o under he Hom e r t ed t ci i eem ent ed nt t 1 Afor e M odii i Pr am bet 0 f dabl fcaton ogr ween Aur a and t f or he eder gover ent I t r al nm . n hei 1 opposii t Aur a' m oton t di i s, ai if st e t Aur a r ei m oney fom t 1 ton o or s i o sm s Pl ntfs at hat or ec ved r he 1 f algov nmentundert Home Afor e Modic i Pr am. ( n t Mot t 2 eder er he f dabl f aton ogr i Opp' o . o 1 Di s ( at7) Ac di t Pl ntfs, t t i f al 3 smis #15) . cor ng o ai if aferakng eder money' or di notI up d a d Aur i ve 1 t is obl i undert s agr ent and i doi so br 4 ot i ons gat hi eem , n ng eached i obl i ofgood f t t s i on gat aih 1 and f rdeal ' J=. 8. 5 ai i ng. # at 16 Ir n esponse,Aur a st es t Pl ntfs have no rghtt sue f br or at hat ai if i o or each ofcont acton r 1 t r pari pat agr ent under t e Hom e Afor e M odiiat Pr am . Aur a 7 hei tci i on eem h f dabl fc i on ogr or 1 c 8 oncedes t i i a pari pant i t f hat t s t ci n he eder pr am ; how ever Aur a st es t an al ogr , or at hat y l obl i 9 i ons i has under t gat t hat pr am ar t t ot ogr e o he her contactng pary - t f r i t he eder al 20 gover nment ( y( 8) 6) Acc di t Aur a, ai if u en i endedbenefci i . Repl #1 at . or ng o or Pl ntfs ar otnt i ares 2l of t agr ent r her t he eem ; at hey ar i dent benefci i w i no rght t enf ce t e nci al i ares t h i s o or he 2 agr 2 eement' J= . #. 2 3 Un Rul 1 .l et amendshalbefeel gi whenjstc s r r Fed.R. der e 5 eav o l r y ven u ie o equies. 24 Ci P.1 a) ' hi pol yi t beappl wihexr l aly. Emi v. 5( . ' s i s o T c i t teme i i ' nenceCaoi , v. ed ber t ' t LLC al 2 Asn 5 eon,I ,316 F. 1 nc. 3d 048,1 ( h Ci.zoo3li er quot i mars and ci i 051 9t r tnt nal aton k t on at 2 omied) Howev ,a dititcour maydeny I t amend ' 6 t . t er src t eave o whenamendmentwoul be d 27 f i wheniwoul caus undueprj c t t def utl e, t d e eudie o he endantor enii soughti badf t ' , wh ts n aih. ' 28 Ventessv.J r apanAil 603 F. 676,680 ( hCi. ri nes, 3d 9t r 2010) . 13 l l t s case,t Cour deni Pl ntss'r n hi he t es ai i equestf I or eave t am end on t gr o he ound t hat 2 such am endm en w oul be f ti I Es edo v. t d u i n cob e. Countvwi Hom e Loans,I , he di rct r de nc. t sti 3 courtaddr essed t i he ssue ofw het a hom eow nercoul sue f br her d or each ofcontacton a r 4 pari paton agr entundert Hom e Afor e M odii i Pr am .2009 W L 4981618 lci i eem he f dabl fcaton ogr 5 ( D.Cal 2009) Th pl ntf i t caseatempt t sueont pari paton agr S. . . e ai ifn hat t ed o he t i ci eemen t 6 asa t r parybenefci y.J at* Countywi ar hid- t i ar #. 2. r de gued t t pl ntf I ked sandig hat he ai ifac t n 7 t sue b o ecausehewasnotani en t r parybenefcar.J- Thediti c tagr nt ded hid- t ii y #u sr our eed ct 8 wih Countywi Acc di t t coud,'l su asa t r pary benefci y ofa contact t r de. or ng o hat 'to e l hid- t i ar r , 9 t t r part m ustshow t t contactr l s t expr or i pl i enton of t he hid y hat he r efect he ess m i nt i ed he tes o he r o i he hid t ' # quot 1 pari t t contactt beneftt t r pary. ! ( i Kl hW at User Pr ectv 0 =. ng amat er s ot ie 1 Ass' v.Pateron,2O4 F. 1206,1 1( hCi.2000).' ewayt asc t nsuchi ent l n ts 3d 21 9t r )' On o erai nt . 1 i t askw het t b 2 so her he enefcar i i ywoul be r onabl i r y ng on t pr i as m aniestng d eas e n el i he om se f i nt i o er i m . #.ci 1 an i enton t conf a rghton hi orher' !- ( tng Resat 3 i t emen j 3O2( ( cmtd..I t 1)b) . ) n . 1 Esc 4 obedo,t c tnot t att Ni h Cicui cautons t 'pq t t beneftfom a he our ed h he nt r t i hat l ari hat es ir 15 gover ent contact ar gener l assum ed t be i dent benefci i , and may not nm r e aly o nci al i ares 16 enf ce t contactabsenta cl i entt t contar ....G over ent contact ofen or he r ear nt o he r y nm r s t 17 beneftt publc,buti vi i he i ndi dualm em ber oft publc ar t eat as i dent benefci i s he i e r ed nci al i ares ess fer n en i s f ed. 4 1 unl a dif ent it ton i m aniest ' Escobedo, 2009 W L 4981618 * ( i 8 2 quotng 1 Kl h,204 F. at1211). 9 amat 3d ) 20 The cour hel t t padi paton agr entati t d hat he ci i eem ssue was ent ed 'nt i par f t er i o n t or he 2l beneft of qual i bor ower and w i t i i ed f r s t hese b r h orower i m i ' Es s n nd. ' cobe do, 2009 W L 22 498161 *2.'- ever t e I 8 Il low , h anguage o t contac does notshow t t pari i ended f he r t hat he t nt es 23 t gr quali borower t rghtt enf cet Agr o ant ied r s he i o or he eement'1- 'ndeed,heAgr f . #.' ' I t eement 2 spec fes t i ' li e t t beneft of . . .t pari t t A g eem ent and t r 4 ii hat t shal nur o he i he t o he r es hei 25 2 6 1nKl mah,h Ni hCic t l t t lh hac nta t t e heUnie Stt a dada I a t te nt r uihed ha atoug o rc bewe nt td aes n m o r t opqa q t t irg o s be etta was'nd bt l e e e i o wih t iryao si pe aor rt d o he riatq ' n i nd u ou edy ntr d nt t he ri tr n 27 mmd, not ng m tec nta te e a i e ton oftl pa te t t ec ta t op'ntt el g o s ' hl h o r c vmc d n ntn i le ri s o h on n c t a h ni atr e or e bl nght. Klmal 2 F. a 1 11 1 The Ni h Cic te l ie to al t m nf c a e s a tu 04 3d t 2 - 2. nt r ui xg an d, û low he t 28 i e de tid pa t be ef ar sauswoul o n t d t a 1us r r c wig abene fom t nt n d h r - ry n ci y tt d pe he oor o 1 e s e e n ft r he Prj c bya hivigsmia saus ars tno mtnde byt Co rct .=a 1 1 o et c e n i lr tt , eul t e d he nta .J .t 2 2. # 1 4 m ted s-n-nt .'#. ' l per it successor i i erest,! Thus,hecourf t toundt t borower wer i dent hathe r s e nci al . 2 benefci i of t pari paton agr i ares he tci i eem entand do not have enf ceabl rght undert or e i s he 3 c r t J= ontac. # . 4 I Benio v.I n t ndvm ac.M orq.Ser ces, he Nevada di rctcour agr w ih t hol ng l vi t sti t eed t he di 5 i Esc . 2010 W L 2130648 * ( Nev.2010) l t c e,te c sat t t n obar 7 D. . n hat as h oud t ed hat he 6 pl ntfs had noti ii anyt ng i t Hom e Afor e M odii i Pr am contact ai if dentfed hi n he f dabl fcaton ogr r 7 d ch cl l ex es a pr i or i entt beneftborower ' J=.Rat ' or ng t ' whi eary pr ses om ss y nt o i r s. # ' her acc di o 8 t cour,dhe HA M P contactcont ns a pr si st i t t S eem entshal i e t hat t' t r ai ovi on atng hat he Agr l nur o 9 t beneft of and be bi ng upon t par es t t Agr he i ndi he li o he eem ent and t r per it hei m ted s-n-nt est' -The ourf ' 1 successor i i er .'@. c toundisi fc t t d eementn 0 t gni anthathe ' i Agr owher st es e at . 11 t hat i gi bor ower any rght or ot wi expr y i ends t conf t r pady t ves r s i s her se essl nt o er hid 1 benefcar s at on borower ' J= 2 ii y t us r s. # . ' 1 3 The agr eem entati ssue i t s tase cont ns a si i cl n hi z ai m l ause. I pr des t :' he ar t ovi hat ' T l Agr entshal i e t t beneftofand be bi ng upon t pari t t Agr 4 eem lnur o he i ndi he tes o he eem entand 1 t rper ted suc 5 hei mit cessor-n-nt est' ( Ser cerPari paton Agr s i i er . See vi ' tci i eementat! 11. 1 E, l atach asEx. t Opp' t Mott Dimi (/ ) Si l t Beni t agr 6 t ed 2o n o .o s ss /15). mi o ar t he eementdoes o, 17 notgi borower any rght orconf t r pady benefci y st us on t ve r s i s er hid i ar at hem . 18 Based on t f egoi t Coud deni Pl ntfs'r he or ng, he es ai ir equestt am end t i ude a o o ncl 1 br 9 each ofcontactcl m undert Hom e Afor e Modii i Pr am .The Cour agr r ai he f dabl fcaton ogr t ees 20 w ih t concl ons r t he usi eached by t cours i Escobar and Benio t t I he t n t hat he anguage oft he 21 agr eem entdoes notconf t r pady benefci y st us on borower See al Burzos v. er hid i ar at r s. so t 2 Counr i Home L s,2010 W L 2196068 * ( D.Calzol t di t b r s 2 tm de oan 2 S. . olhol ng hat orower 2 I 3 ackedsandi t sue f anal t ng o or l eged br eachofas vi agr er cer eement;Kamnv. or Loan l Aur a 2 Series,2009 W L 3177636 * ( D. 2009) Vil v.W el Famo Bank,N. ,2010 W L 4 vc 4 C. CaI , l . a l s A. 25 935680 * ( D. .zololadopi t r 3 S. CaI t tng he easoni setf ' i Esc ng olh n obedo) Thu Pl ntf t . s, ai is' f 26 r equestt am end i deni o s ed. 27 11 Cedii i ofQues i t t Nevada Supr e Cour 1. fcaton ton o he em t 28 Pl ntff have fl a m oton t ceriy a queston t t Nevada Supr e C oud. ai i s ied i o tf i o he em 15 1 Sp fc l Pl ntfs r eci al i y, ai if eques t t s Cour as t Nevada Supr e Cour f i t hat hi t k he em t or t s 2 i er et i oft t m ' t i compl e'underNRS 1 080( ( ( . ( .t nt pr at on he er subsantal i ' anc 07. 5)a)2) Mot o 3 Ceri Queston( at4) Acc di t Pl ntfs,t hav al ty f i #20) . or ng o ai if hey e l 'hatQualy' f l e eged d t i s ai t ur 4 t speciyt am ountoft def ti paym entand t tm e whi t def tmay be cur o f he he aul n he i ch hat aul ed, 5 r ender inoti ' t i com pl s t n subs antal i ance' t Nev I an t f al def tve. L=. 3. wih ada aw d hus at l ec i ' d at y ' 6 Pl nt f s at t t s i ai i s t e hat hi ssue has notbeen addr f essed byt Nevada Supr e Cour,' i he em t' t and 7 i f t sr s or hi eason t t s coud shoul cediy t m atert t Nevada Supr e Courtf hat hi d f he t o he em or 8 r uton,r hert deci ngt materdiecl ' 1. esol i at han di he t r ty. #. ' 9 I r n esponse,Q ualy ar i gues t t e i no i t hat her s ssue whi needs t be cerii t t ch o tfed o he 1 Nev Supr Cour.( nt Mott CeriyQuesi ( at3) Acc di t Qualy, 0 ada eme t Opp' o .o t f ton #21) . or ng o i t 11 t ' he subst i com plance' I antal i ' anguage i cl and does notr r t a f ecl ng pary s ear equie hat or osi t 1 speci a r nst ementfgur i t not ofdef t J2 f ei at y i e n he i ce aul. #. 1 3 Undert Nevada Rul ofA ppel e Pr he es l at ocedur e: 1 4 The Supr e Cour m ay an em t swerques i ofI cerii t i by t Supr e tons aw t ed o t he f em Cour oft Uni St es,a Cour ofAppeal oft e Uni St ys oro t t he t ed at t s h t ed at f he 1 5 l 6 Ditito Cou i a Unt St e Ditc Cout ora Unt Stts sr f lmba, c i ed ats sj t r, l ed ae Bank upt Cojr when r r cy t equesed by t cerlyi c t i t e ar i ol d t he t ng our f her e nv ve f i an poq e n b f eto ec rsq e t nso lw o t ssaewhc may n y r e dlg eor h s ou t u si fa ihi tt ih o be det m l i oft caqse t pen ng i t c t yng cour and as t er natve he hen di n he eri i f t o 1 7 w hi i appear t t cerlyi cour t e i no c r l pr ch t s o he t ng f t her s ontolng ecedenti t i n he deci ons oft Supr e Cour oft s s at si he em t hi t e. 1 N 8 ev.R. App.P.5( .A f al our maydecde nott ceri aquestont asat supr a) eder c t i o ty f i o te eme 1 coud w her i woul be i fci and uneconom i . See l r Sulvan,2O0 B. 682,685 9 et d nefi ent cal n e l i R. 20 ( rD. 1 .l Nevada,c ti i i gr edit answermaybedet mi i Bank Nev. 996) n ericaton s ant f he f er nat ve . 21 ofpar oft f t he eder case,t e i no contoli Nevada pr al her s r lng ecedent and t answerwilhel , he l p 22 s te i podantques i s ofI . Vol Car o N . m . I v.Ri i 122 Nev.746,750- , etl m ton aw vo s f A , nc. cc , 51 23 137 P 3d 1161( 2006) Nev. . . 24 I t s m ater t Cour deni Pl ntfs, r n hi t , he t es ai i eques f cedi caton. The s at or f t or f i i t ut y 25 I anguage pr dedi NRS 107. i suf ent cearor ovi n 080 s fi l l f coudst appl NRS 5107. 5) ci y o y. 080( 26 pr des t a u al m ade pur ovi hat s e suantt t s sec i m ay be decl ed v d by any c tof o hi ton ar oi our :, 27 l' compet j idi i i t counywher te s et pl ,it ;r t orot per enturs cton n he t e h al ook ace fhe ( usee t her son 28 aut i t m ake t sal does notsubst i l com pl wih t pr si oft s secton. horzed o he e antal y y t he ovi ons hi i 1 6 l ' NRS ï 1 O8O( ( ' O7. 5)emphass added) Asnot by t i i zed I i . ed he t ci anguage,t t m al he er . . . 2 d t i compl ' antal subs i 'el est t r r ance'r at o he equiement setf i NRS 107. s or n 080. I t sca n hi ese, 3 t Coud f he oundt Def hat endant compl wi t pr si o NRS 5 107. durngt s i t he ovi ons f ed h 080 i he 4 non-udi alf ecl e pr j ci or osur oceedigs. Thus,cerii i t t Nev Supr Cour i n t cat o he ada f on eme ts 5 unnecessar t det m i t m ert oft s acton. yo er ne he is hi i 6 I M oton t Enl ge Ti e V. i o ar m 7 Fi l Pl ntfs fl a m oton t enl ge tm e seeki an ext on w ihi w hi t fl naly, ai if i ed i o ar i ng ensi t n ch o ie 8 ar esponset Qualysmot f summar udgmen fldonJul 15, 0.Pl nif al o i ' i or t on yj ti e y 201 aitfs l ege 9 t t s ext on i m ert on t gr hat hi ensi s ied he oundst t Cour m ustfr det m i w het i has hat he t ist er ne her t l j i c i t deci t s case on Pl ntgs'moton t r 0 ursditon o de hi ai i i o emand. Acc di t Pl n if t or ng o aitfs, hey 11 shoul notbe r r t fl a tm el r d equied o ie i y esponse t Q ualt s moton because t l aterw ilbe o iy' i he ' t m l 1 mootit r 2 f he eman ordi s i gr ed. ( .t Enl geTi ( at2) I r ponse, d smisals ant ' Mot o ar me #20) . n es ' 1 Q ual yar 3 i gues t atPl ntfs m oton shoul be deni because i's not ng m or t a del t h ai if ' i d ed t' i hi e han ay 1 t i ' ( nt Mot t Enl ge Ti ( )at2) 4 actc. Opp' o .o ar me #21 . 1 5 I t s case,t Cour wilgr Pl ntfs' oton and al t n hi he t l ant ai if m i l hem 15 days fom t dat ow r he e l oft sOr ofl ar 6 hi dert i esponset Qualy' Motonf Summar Judgment/19) Alhought e o i s i or t y (/ . t he 1 Cour has di i 7 t sm ssed t cl m s agai Aur a,t e i s i a cl m pendi agai Q ualy he ai nst or her s tl ai l ng nst i t 1 basedonvi atonoft Nevada FaiDebtCol i Pr i Ac.( Compl( 1)at7) 8 ol i he r l on act ect ce t See .#1. 19 I Pl ntfs bel f ai if i t s cl m i d oot'as st ed above, Pl ntfs shal fl a m oton f eve hi ai s ' m ' at ai if l ie i or 20 vol ar di i i t aler i unt y sm ssal n he t natve. 21 22 CO NCLUSI N O Fort f egoi r ons,I I ORDERED tatPl ntgs'Moton t Remand ( i he or ng eas TS h ai i i o #6)s 23 D EN I ED. 2 4 I I FURTHER O RDER ED t Def T S hat endantAur a Loan Ser ces LLC ' M oton t or vi S i o 25 Dim i t Compl nt( i GI s ss he ai #5) s RANTED wih pr udie. t ej c 26 // / 2 // 7 / 28 // / l7 l I I FURTHER ORDERED t Pl ntfs' i t Enl geTi ( i GM NTED. TS hat ai if Moton o ar me #20)s Pl ntfs shal have 15 days fom t dat oft s O r t 5i t ropposii t Def ai if l r he e hi der o e hei ton o endant 3 Qu iyLoanSerieCor aton' Mot f Summar al t vc por i s i or on yludgment#19)or i teal natve, ( , ,n h t i er a m oton f vol ar di i . i or unt y sm ssal I I FURTHER ORDERED t Pl ntfs'Moton t CeriyQues i t t Nevada T S hat ai i f i o t f ton o he Supr Cour ( i DENI eme t #20) s ED. DATED:Thi 20t day ofO ct s b ober 2010. , i St es it i Judge t ed at rct 11 13 21 18

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