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Case 17-05016-btb     Doc 53            Entered 05/30/18 14:11:57     Page 1 of 6

 

Matthew D. Francis

Nevada Bar No. 6978

mfrancis@bhfs.com

Arthur A. Zorio

Nevada Bar No. 6547

azorio@bhfs.com

 

BROWNSTEIN HYATT FARBER SCHRECK, LLP

5371 Kietzke Lane

Reno, NV 89511

Telephone: 775.324.4100

Facsimile: 775.333.8171

 

Attorneys for JED MARGOLIN

 

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF NEVADA

 

BK-N-16-50644-BTB

Chapter 15

 

Adversary Proceeding: 17-05016-BTB

 

DEFENDANT JED MARGOLIN’S OPPOSITION TO PLAINTIFFS’ MOTION FOR PARTIAL SUMMARY JUDGMENT ON PLAINTIFFS’ QUIET  TITLE/DECLARATORY RELIEF CAUSE OF ACTION

 

Hearing Date: June 13, 2018

Hearing Time: 2 p.m.

 

 

In Re JAZI GHOLAMREZA ZANDIAN,

 

            Debtor.

 

__________________________________/

 

FRED SADRI, AS TRUSTEE FOR THE STAR LIVING TRUST, DATED APRIL 14, 1997; RAY KOROGHLI AND SATHSOWI T. KOROGHLI, AS MANAGING TRUSTEES FOR KOROGHLI MANAGEMENT TRUST,

 

            Plaintiffs,

 

 v.

 

JED MARGOLIN; JAZI GHOLAM REZA ZANDIAN; and all other parties claimingan interest in real properties described in this action,

 

            Defendants.

 

__________________________________/

 

PATRICK CANET,

 

            Counterclaimant,

 

 v.

 

FRED SADRI, INDIVIDUALLY AND AS TRUSTEE FOR THE STAR LIVING TRUST; RAY KOROGHLI,

 

 

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INDIVIDUALLY; RAY KOROGHLI AND SATHSOWI T. KOROGHLI, AS MANAGING TRUSTEES FOR KOROGHLI MANAGEMENT TRUST,

 

            Counter-Defendants.

__________________________________/

 

PATRICK CANET,

 

            Cross-Claimant,

 

v.

 

JED MARGOLIN,

            Cross-Defendant.

 

 

I. INTRODUCTION

 

On April 12, 2018, Plaintiffs FRED SADRI, AS TRUSTEE FOR THE STAR LIVING TRUST, DATED APRIL 14, 1997; RAY KOROGHLI AND SATHSOWI T. KOROGHLI, AS MANAGING TRUSTEES FOR KOROGHLI MANAGEMENT TRUST (collectively “Plaintiffs”) filed a Partial Joinder to Patrick Canet’s Opposition and Countermotion for Summary Judgment Voiding Judgment Lien. Adv. No. 37. In that Joinder, the only position Plaintiffs asserted was that an affidavit with the information stated in NRS 17.150(4) was not filed, and Mr. Margolin’s judgment liens should be voided. Id. As stated in Mr. Margolin’s Reply in support of his Motion for Summary Judgment/Opposition to Counter-Motion, Plaintiff’s Joinder – like Canet’s Counter Motion - is both procedurally defective, is meritless, and should be denied. Adv. No. 46.[1]   Plaintiffs did not join in the other arguments or positions asserted by Canet in his Opposition and Countermotion for Summary Judgment. Adv. No. 34.

 

On April 16, 2018, Plaintiffs also filed a Motion for Partial Summary Judgment on Plaintiff’s Quiet Title/Declaratory Relief Cause of Action. Adv. 39. In this Motion, Plaintiffs assert two arguments: (1) that Mr. Margolin’s judgment liens and the subsequent execution sales

 

_________________________

 

[1]  Cross-Defendant Jed Margolin’s Reply in Support of Motion for Summary Judgment Against Cross-Claimant Patrick Canet and Opposition to Counter Motion, and all supporting documents thereto, are incorporated by reference herein. See Adv. No. 46

 

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only affected Zandian’s (and/or his various companies) 1/3 interest in those properties, leaving Plaintiffs’ putative 2/3 interests (if any) intact; and (2), alternatively, Mr. Margolin’s liens should be voided because an affidavit was not filed with the Washoe County Recorder containing information stated in NRS 17.150(4). For the reasons stated below, and in Adv. No. 46, Plaintiff’s Motion must be denied.[2]

 

 

II. REPLY ARGUMENTS

 

A. Plaintiffs’ 2/3’s Interest, if Any, is Limited to the Limited Parcels to Which They Claim An Interest Are Preserved

 

Jed Margolin does not dispute that his judgment liens and execution sales only affect the interests of Zandian (and/or his various companies). If Plaintiffs had 2/3rds interests in the nine parcels prior to the recordation of Mr. Margolin’s Judgment, a point that Plaintiffs must prove, then Plaintiffs’ 2/3rds interest is preserved.3 Mr. Margolin is only interested in his 1/3 interest in the nine parcels for which he has a lien by virtue of the recording of the Default Judgment in Washoe County, Nevada, and/or has title by virtue of the applicable Sheriff’s sales. See Adv. No. 26, Exhibit A; see Adv. No. 25, Exhibits B-D.

 

 

B. Mr. Margolin Properly Secured the Properties By Filing A Copy of the Judgment

 

Mr. Margolin undisputedly recorded his Default Judgment against Zandian, thereby creating a lien securing those properties on the dates recorded. NRS 17.150(2) (a “copy of any judgment … may be recorded in the office of the county recorder in any county, and when so recorded it becomes a lien upon all the real property of the judgment debtor not exempt from the execution in that county.”). See Adv. No. 26, Exhibit A; Adv. No. 47, Exhibit A. This point is established and any argument to the contrary is without merit.

 

Each of the Sheriff’s deeds state the interest executed upon is that of the judgment debtor, not that of the Plaintiffs. See, e.g. Adv. No. 40, Exs. 5 (084-130-07), 7 (084-0470-02), 9 (079

_________________________

 

[2]  Plaintiffs filed a Statement of Undisputed Facts on April 16, 2018. See Adv. No. 40. While Mr. Margolin does not contest the statements of fact, he does contest the legal conclusions Plaintiffs allege those facts create.

 

[3]  Plaintiffs admit that their Stipulated Agreement was not recorded in Washoe County, Nevada until September 25, 2017, after Mr. Margolin’s Answer was filed. See Adv. No. 40, Ex. 11. Prior to that date, the only document recorded in Washoe County, Nevada, was the Judgment Confirming Arbitration Award, which required Plaintiffs to transfer all title to the Property to judgment debtor Zandian. See Adv. No. 40, Exhibit 10.

 

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150-10).

 

Mr. Margolin will accept Plaintiffs representations to this Court that Plaintiffs collectively hold 2/3 interests in the 9 Washoe County properties (079-150-09, 079-150-10, 079-150-13, 084040-02, 084-040-04, 084-040-06, 084-040-10, 084-130-07, 084-140-17). As such, Plaintiffs’ alternative argument is moot and should not be considered. Even if it is considered, it is meritless.

 

C. Plaintiffs’ Alternative Argument is Wholly Without Merit -- An Affidavit Is Not Required to Secure Real Property

 

NRS 17.150(2) makes clear that the lien comes into existence and therefore secures the real property upon the recordation of the judgment. NRS 17.150(2) states that a “transcript of the original docket or an abstract or copy of any judgment or decree of a district court of the State of Nevada or the District Court or court of the United States in and for the District of Nevada, the enforcement of which has not been stayed on appeal, certified by the clerk of the court where the judgment or decree was rendered, may be recorded in the office of the county recorder in any county, and when so recorded it becomes a lien upon all the real property of the judgment debtor not exempt from the execution in that county, owned by the judgment debtor at the time or which the judgment debtor may afterward acquire, until the lien expires.” (Emphasis added).

 

This conclusion is supported by case law interpreting NRS 17.150(2). See Leven v. Frey, 123 Nev. 399, 403, 168 P.3d 712, 715 (2007) (“NRS 17.150(2) creates a lien on a debtor’s real property in a particular county when a judgment is recorded in that county.”).

 

“It is the duty of [a] court, when possible, to interpret provisions within a common statutory scheme to avoid unreasonable or absurd results, thereby giving effect to the Legislature’s intent.” S. Nevada Homebuilders Ass’n v. Clark Cty, 121 Nev. 446, 449, 117 P.2d 171, 173 (2005). Interpreting NRS 17.150(4) to be a requirement for the existence of a lien would render the above-emphasized language of NRS 17.150(2) without meaning. The lien is automatically perfected pursuant to the plain language of NRS 17.150(2) by merely recording the judgment.

 

NRS 17.150(4) simply does not state that the affidavit is required to secure a lien upon the

 

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property. All that is required is to record a copy of the judgment, which Mr. Margolin did. Therefore, Mr. Margolin properly perfected judgment liens upon the properties.

 

Ironically, Plaintiffs have not produced any evidence that the two primary documents they rely on to claim their 2/3 interest in the Property (the Judgment Confirming Arbitration Award and Stipulated Agreement - Adv. No. 40, Exhibits 10-11) were filed with an accompanying affidavit. Plaintiffs therefore admit that an affidavit is not necessary to secure a lien upon the Property at issue.

 

 

III. CONCLUSION

 

Mr. Margolin does not contest Plaintiffs’ alleged rights (whatever they may be) relating to their claimed 2/3 interest in the following parcels of Property in Washoe County: 079-150-09, 079-150-10, 079-150-13, 084-040-02, 084-040-04, 084-040-06, 084-040-10, 084-130-07, 084140-17. Mr. Margolin is only concerned with Zandian’s 1/3 interest, that now belongs to Mr. Margolin. The Court need not reach Plaintiffs’ alternative argument. However, if it does so, such argument must be rejected because the affidavit referred to in NRS 17.150(4) is not a prerequisite for establishing a valid lien.

 

 

DATED: This 30th day of May, 2018.

 

BROWNSTEIN HYATT FARBER SCHRECK, LLP

 

By: /s/Arthur A. Zorio

 

Matthew D. Francis

Arthur A. Zorio

5371 Kietzke Lane

Reno, NV 89511

Telephone: 775-324-4100

Attorneys for JED MARGOLIN

 

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CERTIFICATE OF SERVICE

 

 

Pursuant to Fed. R. Civ. P. 5(b), I certify that I am an employee of BROWNSTEIN HYATT FARBER SCHRECK, LLP, and on this 30th day of May, 2018, I served the document entitled DEFENDANT JED MARGOLIN’S OPPOSITION TO PLAINTIFFS’ MOTION FOR PARTIAL SUMMARY JUDGMENT ON PLAINTIFFS’ QUIET TITLE/ DECLARATORY RELIEF CAUSE OF ACTION on the parties listed below via the following:

 

 

[ ]  VIA FIRST CLASS U.S. MAIL: by placing a true copy thereof enclosed in a sealed envelope with postage thereon fully prepaid, in the United States mail at Reno, Nevada, addressed as follows:

 

Dana Jonathon Nitz, Esq.

Yanxiong Li, Esq.

Wright, Finlay & Zak, LLP

7785 W. Sahara Avenue., Suite 200

Las Vegas, NV 89117

yli@wrightlegal.net

 

Jeffrey L. Harman, Esq.

HARMAN & HARTMAN

510 West Plumb Lane, Suite B

Reno, NV 89509

notices@bankruptcyreno.com

 

 

[ ] BY PERSONAL SERVICE: by personally hand-delivering or causing to be hand delivered by such designated individual whose particular duties include delivery of such on behalf of the firm, addressed to the individual(s) listed, signed by such individual or his/her representative accepting on his/her behalf. A receipt of copy signed and dated by such an individual confirming delivery of the document will be maintained with the document and is attached.

 

[ ]  VIA COURIER: by delivering a copy of the document to a courier service for over-night delivery to the foregoing parties.

 

[X] VIA ELECTRONIC SERVICE: by electronically filing the document with the Clerk of the Court using the ECF system which served the foregoing parties electronically.

 

 

/s/ Nancy R. Lindsley

 

Employee of Brownstein Hyatt Farber Schreck, LLP

 

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