Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

The Mundens own ranching property in Bannock County, Idaho. They purchased 768 acres in 2012 and 660 acres in 2014 and purchased title insurance for the first purchase through Stewart and for the second purchase through Chicago Title. The property contains a gravel road. A 2019 ordinance amended a 2006 ordinance that closed specified snowmobile trails, including that gravel road, to motor vehicles except snowmobiles and snow-trail-grooming equipment during winter months. The 2019 ordinance deleted the December-to-April closure, giving the County Public Works Director the discretion to determine when to close specified snowmobile trails, and increased the maximum fine for violations. The Mundens sought an injunction. The county asserted that the road had been listed as a public road on county maps since 1963 and that the Mundens purchased their property expressly subject to easements and rights of way apparent or of record.The Mundens filed a federal complaint, seeking declaratory relief, indemnification, and damages. The district court granted the insurance companies summary judgment. The Ninth Circuit reversed as to Chicago Title, finding that the county road map is a “public record” within the meaning of its policy so that coverage applied. Stewart has no duty to indemnify or defend; its policy disclaims coverage for damages “aris[ing] by reason of . . . [r]ight, title and interest of the public in and to those portions of the above-described premises falling within the bounds of roads or highways.” View "Munden v. Stewart Title Guaranty Co." on Justia Law

The Ninth Circuit reversed the district court's grant of summary judgment in favor of the 732 Hardy Way trust, the denial of summary judgment to the Bank, and the dismissal of the Bank's claims against the HOA in a quiet title action brought by the Bank, concerning title to real property in Nevada that was subject to a HOA nonjudicial foreclosure sale. At issue is whether the Bank, as the first deed of trust lienholder, may set aside a completed superpriority lien foreclosure sale on the grounds that the sale occurred in violation of the automatic stay in bankruptcy proceedings.The panel concluded that the Bank may raise the HOA's violation of the automatic stay provision and that the Bank has superior title. The panel explained that the Bank has standing under Nevada's quiet title statute, Nevada Revised Statute 40.010, and established case authority confirms that any HOA foreclosure sale made in violation of the bankruptcy stay—like the foreclosure sale here—is void, not merely voidable, Schwartz v. United States, 954 F.2d 569, 571–72 (9th Cir. 1992). Therefore, the district court erred in holding that the Bank lacked standing to pursue its quiet title claim in federal court. The panel remanded for further proceedings. View "Bank of New York Mellon v. Enchantment at Sunset Bay Condominium Ass'n" on Justia Law

In 1958, the Northern Pacific Railroad physically abandoned the 20-mile segment outside of Noxon, Montana. Part of that segment runs through the Finnigan property, which is entirely within the boundaries of the Kanisku National Forest. Several landowners along the right of way sought a judicial decree of abandonment and ultimately gained title to their respective segments of the abandoned railway. The Finnigan property’s then-owner did not seek a judicial decree of abandonment. In 2018, the Finnigan Estate brought suit to quiet its title to the right of way across its property. The district court rejected the action on summary judgment.The Ninth Circuit affirmed. Northern Pacific stopped using the segment in 1958, but the railway was not formally declared abandoned before the 1988 enactment of the Rails-to-Trails Act, 6 U.S.C. 1248(c), so the United States retained its reversionary interest in the land. The Act provides that title “shall remain” with the U.S. for railroad rights-of-way abandoned after October 4, 1988, except to the extent that the right of way was converted to a public highway. To transfer rights-of-way to neighboring landowners, abandonment requires both physical abandonment and a judicial decree of abandonment. The judicial-decree requirement was not met when another parcel in the segment obtained a judicial decree of abandonment that did not cover the Finnigan property. View "Estate of Finnigan v. United States" on Justia Law

The Ninth Circuit certified to the Nevada Supreme Court the following question: Whether, under Nevada law, an HOA's misrepresentation that its superpriority lien would not extinguish a first deed of trust, made both in the mortgage protection clause in its CC&Rs and in statements by its agent in contemporaneous arbitration proceedings, constitute slight evidence of fraud, unfairness, or oppression affecting the foreclosure sale that would justify setting it aside.The panel also asked the Nevada Supreme Court to consider the related issue of what evidence a first deed of trust holder must show to establish a causal relationship between a misrepresentation that constitutes unfairness under Nationstar Mortg., LLC v. Saticoy Bay LLC Series 2227 Shadow Canyon, 133 Nev. 740 (2017), and a low sales price. View "U.S. Bank, NA v. Southern Highlands Community Ass'n" on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment for Nationstar in a diversity action brought by plaintiff alleging claims arising from nonjudicial foreclosure by a HOA on real property in Nevada. The Federal Foreclosure Bar, 12 U.S.C. 4617(j)(3), and Nevada state law, which establishes that in the event a homeowner fails to pay a certain portion of HOA dues, the HOA is authorized to foreclose on a "superpriority lien" in that amount, extinguishing all other liens and encumbrances on the delinquent property recorded after the Covenants, Conditions, and Restrictions attached to the title. The panel concluded that while Nevada law generally gives delinquent HOA dues superpriority over other lienholders, it does not take priority over federal law. Furthermore, federal law, in the form of the Federal Foreclosure Bar, prohibits the foreclosure of Federal Housing Finance Agency (FHFA) property without FHFA's consent.In this case, the panel concluded that Nationstar properly and timely raised its claims based on the Federal Foreclosure Bar. The panel also concluded that the Federal Foreclosure Bar applies to the HOA foreclosure sale here where Fannie Mae held an enforceable interest in the loan at the time of the HOA foreclosure sale, as established by evidence of Fannie Mae's acquisition and continued ownership of the loan throughout that time and by evidence of its agency relationship with BANA (formerly BAC), the named beneficiary on the recorded Deed. The panel explained that Fannie Mae's interest in the loan, coupled with the fact that it was under FHFA conservatorship at the time of the sale, means the Federal Foreclosure Bar applies to this case. Finally, the panel concluded that the Federal Foreclosure Bar preempts the Nevada HOA Law. View "Nationstar Mortgage LLC v. Saticoy Bay LLC" on Justia Law

The Fair Housing Amendments Act of 1988 (FHAA) does not require landlords to accommodate the disability of an individual who neither entered into a lease nor paid rent in exchange for the right to occupy the premises.The Ninth Circuit affirmed the district court's grant of summary judgment in favor of the City, in an action brought by plaintiff against the City for wrongful eviction based on several theories of state law implied tenancy. The panel held that the FHAA applies to rentals only when the landlord or his designee has received consideration in exchange for granting the right to occupy the premises. As to occupants requesting accommodation, the panel held that the FHAA's disability discrimination provisions apply only to cases involving a "sale" or "rental" for which the landlord accepted consideration in exchange for granting the right to occupy the premises. Applying a federal standard rather than California landlord-tenant law, the panel concluded that because plaintiff never provided consideration in exchange for the right to occupy Spot 57, the FHAA was inapplicable to his claim for relief. Furthermore, the City was not obligated to provide, offer, or discuss an accommodation. View "Salisbury v. City of Santa Monica" on Justia Law

The Ninth Circuit vacated the district court's grant of costs to Mercy Housing in an action brought by a former tenant under the Fair Housing Act. The panel joined the the First, Second, Fourth, and Fifth Circuits, all of which have applied the Christiansburg standard, and held that a plaintiff bringing suit under the Fair Housing Act should not be assessed fees or costs unless the court determines that his claim is frivolous, unreasonable, or groundless.The panel affirmed in part and reversed in part the district court's grant of summary judgment to defendant in a concurrently-filed memorandum disposition. The panel remanded for further proceedings. View "Green v. Mercy Housing, Inc." on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment for defendants in an action brought by plaintiff and his family under the Fair Housing Amendments Act (FHAA). Plaintiff and his family sought to extend their tenancy in defendants' property based on plaintiff's medical condition.The panel agreed with the district court that, under 42 U.S.C. 3604(f)(3)(B), making "accommodations in rules, policies, practices, or services" was not necessary to afford plaintiff and his family "equal opportunity to use and enjoy a dwelling." The panel held that, absent an accommodation, the plaintiff's disability must cause the plaintiffs to lose an equal opportunity to use and enjoy a dwelling. In this case, defendants offered plaintiff and his family, who were on a month-to-month tenancy, terminable at will, a new lease for one year at an increased rent. However, plaintiff and his family turned down the new lease, and never credibly argued that they turned down the lease for any reason related to plaintiff's disability. Upon termination of the lease, plaintiff and his family were in the same position as a family with no disability that had had its lease terminated. The panel explained that it could not find a connection between plaintiff's disability and his request to remain in the home until January 22, 2018. Therefore, defendants were under no obligation to extend the tenancy-termination date. Finally, the panel agreed with the Third and Sixth Circuits and held that there is no standalone liability under the FHAA for a landlord’s failure to engage in an interactive process. View "Howard v. HMK Holdings, LLC" on Justia Law

The Ninth Circuit affirmed the district courts' grants of summary judgment in favor of the HOA in an action brought by the Bank, seeking to set aside the HOA's foreclosure sale of real property in Nevada. The district court held that, because the mortgage savings clause in the applicable covenants, conditions, and restrictions (CC&Rs) did not affect the sale, the sale could not be set aside. Therefore, title vested with SFR Investments, the purchaser at the HOA sale.The panel predicted that the Nevada Supreme Court would adhere to its unpublished decisions, and hold that a mortgage-savings clause, by itself, did not constitute unfairness that affects a sale. The panel held that the clause was void as a matter of Nevada law, because it plainly conflicted with Nev. Rev. Stat. 116.3116(2), which required liens for unpaid assessments to have superpriority status, and Nev. Rev. Stat. 116.1104, which provided that the priorities cannot be modified by agreement. The panel also held that the mortgage-savings clause was void under the terms of the CC&Rs themselves. The panel explained that the Bank did not introduce any evidence whatsoever in this case that the mortgage-savings clause affected this sale. The panel rejected the Bank's remaining arguments and concluded that no unfairness arose from the HOA's processing of payments. Finally, the notice at issue did not violate due process. View "U.S. Bank, N.A. v. White Horse Estates Homeowners Ass'n" on Justia Law

The Ninth Circuit amended its certification order, in an appeal raising issues pertaining to Nevada state water law. The panel certified to the Supreme Court of Nevada the following questions: 1) Does the public trust doctrine apply to rights already adjudicated and settled under the doctrine of prior appropriation and, if so, to what extent? 2) If the public trust doctrine applies and allows for reallocation of rights settled under the doctrine of prior appropriation, does the abrogation of such adjudicated or vested rights constitute a “taking” under the Nevada Constitution requiring payment of just compensation? View "Mineral Country v. United States" on Justia Law