Todd v. Fort Defiance Housing Corp., Inc. ( 2014 )


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  •                      foreclosure action and the district court granted the trustee summary
    judgment, finding that issue preclusion barred reexamination of many of
    the issues, that Todd had made key admissions, and that Todd failed to
    provide sufficient evidentiary support for her remaining arguments and
    defenses. Accordingly, the district court ordered the sale of Todd's home.
    Todd appealed, and argues, among other things, that various
    defects exist in the hypothecation agreement and the bankruptcy
    proceedings, which should be construed liberally in her favor. She also
    argues that Bank of Nevada reconveyed the property to her, that the
    hypothecation agreement collateral was impaired, and that her homestead
    exemption precludes the trustee from judicially foreclosing on her
    property. This court reviews the district court's grant of summary
    judgment de novo.    Wood v. Safeway, Inc.,    
    121 Nev. 724
    , 729, 
    121 P.3d 1026
    , 1029 (2005).
    In the bankruptcy litigation giving rise to this action, the
    bankruptcy courts examined the legitimacy of the hypothecation
    agreement and determined it to be a valid, consensual lien that appellant
    granted on her property that took priority over her assertion of the
    homestead exemption. While appellant attacks procedural issues in the
    bankruptcy court, argues factual matters that differ from the bankruptcy
    courts' findings, and asserts that a policy of title insurance supports her
    position, these issues were considered and decided by the bankruptcy
    courts. Nevada state courts have no power to review the findings of a
    federal bankruptcy court and must apply issue preclusion if the issues and
    parties are identical, the issues were actually and necessarily litigated,
    and a final ruling on the merits was issued. See Five Star Capital Corp. v.
    Ruby,   
    124 Nev. 1048
    , 1055, 
    194 P.3d 709
    , 713 (2008);              Clark v.
    ColumbiallICA Info. Servs., Inc.,    
    117 Nev. 468
    , 481, 
    25 P.3d 215
    , 224
    (2001); see generally Stoll v. Gottlieb,      
    305 U.S. 165
    , 170-71 (1938)
    SUPREME COURT
    OF
    NEVADA
    2
    (0) 1947A    cledp
    (explaining, in the context of a bankruptcy case, that state courts have no
    power to interfere with federal court decisions arising out of federal
    question jurisdiction, such as bankruptcy court decisions, even when state-
    law issues are resolved in the context of those decisions, and must give
    preclusive effect to such decisions). Under these circumstances, we
    conclude that the district court did not err in applying issue preclusion to
    bar the relitigation of these issues. And while appellant complains about
    the bankruptcy courts' decisions and application of federal procedure,
    those arguments are not properly before us and appellant must raise them
    in the federal courts in her appeals from those judgments.     See Stoll, 
    305 U.S. at 170-71
    .
    To the extent that appellant raised issues of fact that were not
    decided by the bankruptcy courts, we agree with the district court that
    appellant failed to provide evidence supporting her remaining arguments.
    Wood, 121 Nev. at 729, 
    121 P.3d at 1029
    . Therefore, we perceive no error
    in the district court's grant of summary judgment to the trustee and its
    decision to order that the property be sold. Accordingly, we
    ORDER the judgment of the district court AFFIRMED. 2
    /Acua     sat,
    Hardesty
    ope)   La
    J.                      wat               , J.
    Cherry
    2 We  have considered appellant's remaining arguments and conclude
    that they lack merit.
    On March 5, 2014, appellant filed a document that appears to be a
    copy of a stay motion that she filed in the district court. We interpret this
    to be a notice that appellant filed such a stay motion in the district court
    and it therefore requires no action from this court.
    SUPREME COURT
    OF
    NEVADA
    3
    (0) 1947A    ea
    cc: Hon. Mark R. Denton, District Judge
    Brenda B. Todd
    Snell & Wilmer, LLP/Las Vegas
    Eighth District Court Clerk
    SUPREME COURT
    OF
    NEVADA
    4
    (0) 1947A    eto