LVDG Series 114 Established Under LVDG, LLC v. Wright

MEMORANDUM

Appellant LVDG Series 114 appeals the dismissal of its suit to quiet title on a property located at 3232 La Mancha Way in Henderson, Nevada. Because the parties are familiar with the facts and procedural history, we do not restate them except as necessary to explain our decision. We have jurisdiction under 28 U.S.C. § 1291 , and we reverse and remand for further proceedings.

The district court dismissed LVDG Series 114’s suit based on its determination that a homeowner’s association (“HOA”) foreclosure based on a super-priority lien under Nevada law does not extinguish a first security deed of trust. However, the Nevada Supreme Court has since held in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., — Nev. -, 334 P.3d 408 (2014), that an HOA has a true super-priority lien on a property for nine months of unpaid assessments, and foreclosure on this lien extinguishes all other interests in that property. Accordingly, the district court’s dismissal, to the extent it was based on a contrary interpretation of the Nevada HOA super-priority statutory scheme, was erroneous. See, e.g., Olympic Sports Prods., Inc. v. Universal Athletic Sales Co., 760 F.2d 910 , 913 (9th…