Lvdg Series 125 v. Harold Welles

MEMORANDUM

Appellant LVDG Series-125 appeals the dismissal of its suit to quiet title on a property located at 1125 Tule Drive in Reno, 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.

1. LDVG Series 125 argues, inter alia, that dismissal of its suit on the merits was improper because the district court had no jurisdiction, because the parties were non-diverse and the former homeowners were not fraudulently joined. Fraudulent join-der occurs when a “plaintiff fails to state a cause of action against a resident defendant, and the failure is obvious according to the settled rules of the state.” Hunter v. Philip Morris USA, 582 F.3d 1039, 1043 (9th Cir.2009) (citation omitted). Under Nevada law, an action to quiet title “may be brought by any person against another who claims an estate or interest in real property, adverse to the person bringing the action.” Chapman v. Deutsche Bank Nat'l Trust Co., — Nev. -, 302 P.3d 1103, 1106 (2013) (citation omitted). Because the former homeowners have…