Opinion
No. 64547
11-25-2014
KK REAL ESTATE INVESTMENT FUND, LLC, A NEVADA LIMITED LIABILITY COMPANY; AND ALESSI & KOENIG, LLC, A NEVADA LIMITED LIABILITY COMPANY, Appellants, v. WELLS FARGO BANK, N.A., SUCCESSOR BY MERGER TO WACHOVIA BANK, N.A., A NATIONAL BANKING ASSOCIATION, Respondent.
An unpublished order shall not be regarded as precedent and shall not be cited as legal authority. SCR 123.
ORDER OF REVERSAL AND REMAND
This is an appeal from a district court judgment on the pleadings in a quiet title action. Eighth Judicial District Court, Clark County; Michelle Leavitt, Judge.
The district court granted respondent's motion for judgment on the pleadings, finding that appellant KK Real Estate had failed to state a viable claim for relief because NRS 116.3116(2)'s superpriority provision "merely sets forth an order of payment and allows the HOA to recover 9 months of assessments from the proceeds of the beneficiary's non-judicial foreclosure." This court's recent disposition in SFR Investments Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. ___, 334 P.3d 408 (2014), decides that a common-interest community association's NRS 116.3116(2) superpriority lien has true priority over a first security interest, and the association may nonjudicially foreclose on that lien. The district court's decision thus was based on an erroneous interpretation of the controlling law and did not reach the other issues colorably asserted. Accordingly, we
REVERSE the order granting judgment on the pleadings AND REMAND this matter to the district court for further proceedings consistent with this order.
/s/_________, J.
Hardesty
/s/_________, J.
Douglas
CHERRY, J., concurring:
For the reasons stated in the SFR Investments Pool 1, LLC v. U.S. Bank, N.A., 130 Nev. ___, 334 P.3d 408 (2014), dissent, I disagree that respondent lost its lien priority by virtue of the homeowners association's nonjudicial foreclosure sale. I recognize, however, that SFR Investments is now the controlling law and, thusly, concur in the disposition of this appeal.
/s/_________, J.
Cherry
cc: Hon. Michelle Leavitt, District Judge
Alessi & Koenig, LLC
Akerman LLP/Las Vegas
Eighth District Court Clerk