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Houston v. Bank of America Federal Savings Bank

Supreme Court of Nevada
78 P.3d 71 (2003)


Edward and Regina Houston (plaintiffs) paid David Boone $740,000 for investment services. Boone converted the money for his personal use. Subsequently, on May 13, 1998, Boone and his wife, Donna, divorced. Boone deeded a property to Donna as part of the divorce settlement. Norwest Mortgage (Norwest) held a deed of trust on the property. On May 14, 1998, the Houstons filed suit against Boone, seeking repayment of the $740,000. On June 1, 1998, the Houstons filed a written notice of a lawsuit on Donna’s property. On June 26, 1998, Bank of America Federal Savings Bank (Bank of America) (defendant) acquired Norwest’s interest and refinanced the deed of trust on the property, paying off the deed of trust. The trial court granted the Houstons a judgment against Boone, ordered a writ of execution, and scheduled a sale of Donna’s property. Bank of America intervened, and the trial court granted its motion temporarily enjoining the sale. Bank of America filed a motion for summary judgment, arguing its lien had priority over that of the Houstons because Bank of America had stepped into Norwest’s shoes.

Rule of Law


Holding and Reasoning (Per curiam)

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