Facklam v. HSBC Bank USAAnnotate this Case
Here the Supreme Court declined to apply Nev. Rev. Stat. 11.190(1)(b)’s statute of limitations for contract actions to nonjudicial foreclosures because statutes of limitations only apply to judicial actions, and a nonjudicial foreclosure by its nature is not a judicial action.
After HSBC Bank USA, which was the beneficiary of a promissory note and deed of trust on Appellant’s home, recorded a notice of default and election to sell Appellant’s property “without any court action,” Appellant commenced this action to quiet title and extinguish HSBC’s interest in the property. The district court dismissed Appellant’s claim, thus rejecting Appellant’s argument that HSBC was barred from foreclosing on the mortgage property because the six-year limitation period began running with the initial notice of default and had therefore expired. The Supreme Court affirmed, holding that the statute of limitations set forth in section 11.190(1)(b) did not extinguish HSBC’s right to pursue a nonjudicial foreclosure because statutes of limitations apply only to judicial actions.