Justia Nevada Supreme Court Opinion Summaries

Appellants signed a note secured by a deed of trust on their home. Respondents, Regional Trustee Services Corporation (RTSC) and One West Bank, were the trustee and beneficiary of the deed of trust. After Appellants stopped making payments, RTSC initiated judicial foreclosure. Appellants elected mediation under the foreclosure mediation program (FMP), which provides proof of compliance with the state's law requiring mediation upon homeowner request before a nonjudicial foreclosure sale can proceed on an owner-occupied residence. When RTSC failed to attend the mediation, the district court declared RTSC in bad faith and directed that RTSC be denied the FMP certificate needed to conduct a valid foreclosure sale. RTSC later reinitiated nonjudicial foreclosure. Appellants sought to enjoin Respondents from pursuing foreclosure, arguing that the order denying the FMP certificate permanently prevented foreclosure. The district court denied Appellants' request and directed the parties to return to FMP mediation. The Supreme Court affirmed, holding that under the circumstances of this case, a lender who has been denied an FMP certificate for failing to mediate in good faith can reinitiate foreclosure by means of a new notice of default and election to sell and rescission of the original, thereby restarting the FMP process. View "Holt v. Reg'l Tr. Servs. Corp." on Justia Law

From 2007 to 2008, Dorothy Rogers received Medicare benefits through Pacificare's federally-approved Medicare Advantage Plan, Secure Horizons. Rogers and Pacificare entered into separate contracts each year providing the terms and conditions of coverage. After receiving treatment from the Endoscopy Center of Southern Nevada (ECSN), a facility approved by Pacificare for use by its Secure Horizons plan members, Rogers tested positive for hepatitis C. Rogers sued Pacificare, alleging that Pacificare should be held responsible for her injuries because it failed to adopt and implement an appropriate quality assurance program. Pacificare moved to dismiss her claims and compel arbitration based on a provision in the parties' 2007 contract. The district court determined that the 2007 contract governed, but held that the arbitration provision was unconscionable and, thus, unenforceable. The Supreme Court reversed, holding (1) because the parties in this case did not expressly rescind the arbitration provision at issue, the provision survived the 2007 contract's expiration and was properly invoked; and (2) as the Medicare Act expressly preempts any state laws or regulations with respect to the Medicare plan at issue in this case, Nevada's unconscionability doctrine was preempted to the extent that it would regulate federally-approved Medicare plans. View "Pacificare of Nevada v. Rogers" on Justia Law

Petitioner William Daane defaulted on a loan secured by a mortgage on his residence. CR Title Services, the trustee of the deed of trust, filed a notice of default to initiate the foreclosure process. Daane opted to participate in the Foreclosure Mediation Program (Program). The district court later found that CitiMortgage, the beneficiary of the deed of trust, had participated in the mediation in bad faith. After the foreclosure process was reinitiated, Daane again elected for mediation in the Program. Daane subsequently brought a petition for a writ of prohibition, seeking to preclude the Program from proceeding with further mediations or issuing a letter of certification. The Supreme Court denied the writ, holding that a writ of prohibition was unwarranted to preclude the Program from conducting further proceedings with respect to Daane's residence because he had an adequate remedy in the ordinary course of law. View "Daane v. Eighth Judicial Dist. Court" on Justia Law

The Pasillases purchased a home with a loan from American Brokers Conduit. The note and deed of trust were assigned to HSBC, and later, Power Default Services became a substitute trustee. The servicer for the loan was American Home Mortgage Servicing (AHMSI). After defaulting on their mortgage, the Pasillases elected to mediate pursuant to the foreclosure mediation program provided for in Nev. Rev. Stat. 107.086. Two mediations occurred but neither resulted in a resolution. Afterwards, the mediator filed a statement indicating that the respondents HSBC, Power Default, and AHMSI failed to participate in good faith and failed to bring to the mediation each document required. The Pasillases subsequently filed a petition for judicial review, requesting sanctions. The district court refused the request. On appeal, the Supreme Court reversed, holding that because the respondents did not bring the required documents to the mediation and did not have access to someone authorized to modify the loan during mediation, the district court erred in denying the Pasillas's petition for judicial review. Remanded to determine sanctions. View "Pasillas v. HSBC Bank USA" on Justia Law

Appellant Moises Leyva received a quitclaim deed in exchange for taking over monthly mortgage payments on a house. Leyva did not expressly assume the mortgage note. After defaulting on the mortgage, Leyva elected to pursue mediation with the lender, Wells Fargo, through the state foreclosure mediation program. Leyva then filed a petition for judicial review in district court, claiming that Wells Fargo mediated in bad faith and should be sanctioned because it failed to produce essential documents. The district court concluded that Wells Fargo did not act in bad faith. On appeal, the Supreme Court held, as a threshold matter, that the foreclosure mediation statute, Nev. Rev. Stat. 107.086, and the foreclosure mediation rules (FMRs) dictate that a homeowner, even if he is not the named mortgagor, is a proper party entitled to request mediation following a notice of default. The Court then concluded that the district court abused its discretion when it denied Leyva's petition for judicial review, holding that (1) Wells Fargo failed to produce the documents required under the statute, and (2) Wells Fargo's failure to bring the required to the documents to the mediation is a sanctionable offense under the statute and FMRs. Reversed and remanded. View "Leyva v. Nat'l Default Servicing Corp." on Justia Law