Diehl ex rel. Terry v. Northwest Trustee Services Inc.
Docket: No. 10-35518
Court: Court of Appeals for the Ninth Circuit; March 9, 2011; Federal Appellate Court
The appeal addresses whether an indenture trustee can delegate the responsibility to call a sale under the Montana Small Tract Financing Act (STFA). Montana law permits delegation of tasks unless explicitly prohibited, as per Mont.Code Ann. 28-10-105. The Montana Supreme Court, in Knucklehead Land Co. Inc. v. Accutitle, Inc., confirmed that an indenture trustee's duties are limited to those specified in the STFA. Consequently, the court upholds the district court's ruling that allows the indenture trustee to delegate this duty. The plaintiffs' arguments regarding the necessity for agents to qualify as indenture trustees under the STFA are found unconvincing. Furthermore, since Montana law is definitive on these issues, the motion to certify the question to the state supreme court is denied. The plaintiffs acknowledge that their claim under the Fair Debt Collection Practices Act is contingent on a violation of Montana law, which has not been established. The decision of the district court is affirmed, and the motion to certify is denied. This ruling is not intended for publication and does not serve as precedent except as specified by 9th Cir. R. 36-3.