Mediation, Foreclosure: 9th Circuit Holds Nevada’s Foreclosure Mediation Rules Provide Exclusive Remedy

August 26, 2020 · Mediation: Foreclosure

Purpose Of Nevada's Foreclosure Mediation Rules Is To Provide Expedited Proceeding For Loan Modifications.

    The Court of Appeals holds in Tobler v. Sables (9th Cir. 8/4/20) (Collins, J.), that Nevada's Foreclosure Mediation Rules are the exclusive remedy under Nevada law for challenging a lender's conduct in the foreclosure mediation process. So a lawsuit brought by borrowers against the lender for tortious breaches of the implied covenant of good faith and fair dealing in the mediation process goes nowhere.

    Two comments. First, under California state law, lawsuits for tortious breaches in the mediation process tend to be stillborn, because given California's strong rules protecting against the introduction into evidence of communications during mediation, there is no way to introduce evidence of wrongdoing.

    Second, why is your blogger posting only now about a case decided on August 4? Blame  it on our pandemic and a bit of distraction.

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