Pasillas v. HSBC Bank USA

The Pasillases purchased a home with a loan from American Brokers Conduit. The note and deed of trust were assigned to HSBC, and later, Power Default Services became a substitute trustee. The servicer for the loan was American Home Mortgage Servicing (AHMSI). After defaulting on their mortgage, the Pasillases elected to mediate pursuant to the foreclosure mediation program provided for in Nev. Rev. Stat. 107.086. Two mediations occurred but neither resulted in a resolution. Afterwards, the mediator filed a statement indicating that the respondents HSBC, Power Default, and AHMSI failed to participate in good faith and failed to bring to the mediation each document required. The Pasillases subsequently filed a petition for judicial review, requesting sanctions. The district court refused the request. On appeal, the Supreme Court reversed, holding that because the respondents did not bring the required documents to the mediation and did not have access to someone authorized to modify the loan during mediation, the district court erred in denying the Pasillas's petition for judicial review. Remanded to determine sanctions.