Justia Nevada Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
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This case involves a dispute over a merger between Parametric Sound Corporation and VITB Holdings, Inc. (VITBH). A group of shareholders, who later formed PAMTP, LLC, opted out of a class action settlement related to the merger and filed a separate lawsuit. They alleged that the merger diluted their equity interests and that Kenneth Potashner, a member of Parametric's board, had breached his fiduciary duties by misleading shareholders about the financial outlook of the merger. The district court granted judgment to the defendants, finding that PAMTP had failed to plead a direct claim.The district court's decision was based on the Nevada Supreme Court's ruling in a previous related case, Parametric I, which held that the shareholders' claims should be dismissed for failure to plead a direct claim. However, the court granted the shareholders leave to replead certain claims that may have been direct under a Delaware case, Gentile v. Rossette. PAMTP's complaint in the present case was based on this guidance.The Nevada Supreme Court affirmed the district court's decision, finding that PAMTP had indeed failed to plead a direct claim. The court noted that the Delaware Supreme Court had since overruled Gentile, holding that most equity expropriation claims are exclusively derivative. The court also found that PAMTP had not satisfied the "direct harm test" adopted in Parametric I.The court also addressed the district court's award of costs and attorney fees to the defendants. It affirmed the award of costs but reversed the award of pre-complaint costs, finding that the district court had abused its discretion. The court also reversed the district court's denial of attorney fees to the defendants, finding that they were entitled to fees under Nevada Rule of Civil Procedure 68. The case was remanded for the district court to determine the amount of fees to which the defendants were entitled. View "In re Parametric Sound Corp." on Justia Law

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The case revolves around an adoption dispute involving a minor child, G.P. The child's step-great-grandparents, Katherine and Michael, had agreed to temporary guardianship of G.P. after being contacted by the child's birth mother during her pregnancy. After G.P.'s birth, Katherine and Michael filed for temporary guardianship in the Second Judicial District Court in Washoe County. Concurrently, G.P.'s grandparents, Angela and Randall, filed a competing petition for guardianship. The birth parents of G.P. later consented to terminate their parental rights and agreed to G.P.'s adoption by Katherine and Michael. With these consents, Katherine and Michael filed a petition for adoption in the Eighth Judicial District Court in Clark County.The Second Judicial District Court had scheduled a hearing for the competing guardianship petitions. However, it was unaware of the pending adoption petition in the Eighth Judicial District Court. The court denied Angela and Randall's petition for temporary guardianship but set a trial date for the competing guardianship requests. A few days later, the Eighth Judicial District Court granted Katherine and Michael's adoption petition. Upon learning of the adoption, Angela and Randall moved to set aside the adoption in the Eighth Judicial District Court, alleging misrepresentation and misconduct. The court granted their motion, setting aside the adoption.The Supreme Court of Nevada reversed the lower court's decision. The court clarified that a motion to set aside a judgment under NRCP 60(b) could be brought by a party to the proceeding, an entity in privity with one of the parties, or a nonparty with interests directly affected by the judgment. However, Angela and Randall, as nonparties, lacked standing to move to set aside the adoption. They were not parties in the adoption proceedings, did not have rights directly affected by the proceedings, and lacked any other statutory or constitutional basis for standing. The court concluded that the district court had abused its discretion in setting aside G.P.'s adoption. View "In re Petition of Perry" on Justia Law

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The case revolves around a property dispute between two neighboring parties, Bo and Dan Jones (appellants), and Hamed Ghadiri (respondent). A block wall, erected before either party owned their respective properties, did not follow the property line, resulting in Ghadiri being denied use of a portion of his property. When Ghadiri sought to remove the wall and build a new one on the property line, the Joneses filed a complaint in the district court for a prescriptive easement or adverse possession.The district court granted summary judgment in favor of Ghadiri. It found that the Joneses could not claim adverse possession as they had not paid property taxes on the disputed property. It also ruled that a prescriptive easement was unavailable as it would result in Ghadiri's complete exclusion from the subject property. The Joneses appealed this decision.The Supreme Court of the State of Nevada affirmed the district court's decision. The court clarified the distinction between adverse possession and prescriptive easements, noting that the former results in the acquisition of title and the right to exclusively control the subject property, while the latter results in the right to a limited use of the subject property. The court acknowledged that comprehensive prescriptive easements, which result in the owner of the servient estate being completely excluded from the subject property, may be warranted in exceptional circumstances. However, it found that the Joneses had not demonstrated such exceptional circumstances. Therefore, the court upheld the district court's grant of summary judgment in favor of Ghadiri. View "Jones v. Ghadiri" on Justia Law

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In 2005, Lance and Eva Posner purchased a property with an outstanding loan secured by a deed of trust, which they assumed responsibility for. The deed of trust was later assigned to U.S. Bank. In 2012, U.S. Bank filed a judicial foreclosure action against the Posners, alleging that the amount owing under the note had become accelerated. However, U.S. Bank did not pursue the judicial foreclosure and voluntarily dismissed its lawsuit without prejudice in 2013. The Posners remained in default on the loan through 2019.U.S. Bank's dismissal of its judicial foreclosure action led to a dispute in 2022. The Posners filed a state-court action asserting a claim for quiet title, alleging that the 10-year period in NRS 106.240 was triggered in 2012 when U.S. Bank filed its judicial foreclosure action, such that by 2022, the deed of trust had been extinguished as a matter of law. They sought a preliminary injunction to prevent U.S. Bank's scheduled nonjudicial foreclosure sale.The district court denied the request for an injunction, finding the Posners' claims had no likelihood of success. The Posners appealed, arguing that the district court erred in relying on NRS 107.550, which only applies to judicial foreclosure actions commenced on or after October 1, 2013.The Supreme Court of Nevada affirmed the district court's decision. The court clarified that instituting judicial foreclosure proceedings does not trigger the 10-year time frame in NRS 106.240. The court concluded that the Posners' quiet title claim had no likelihood of success on the merits because the judicial foreclosure action did not trigger the 10-year time frame in NRS 106.240. Therefore, the lien on the subject property was not discharged as a matter of law in 2022. View "Posner v. U.S. Bank Nat'l Ass'n" on Justia Law

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In a medical malpractice case before the Supreme Court of the State of Nevada, the plaintiff, Kimberly D. Taylor, sued Dr. Keith Brill and Women’s Health Associates of Southern Nevada-Martin PLLC for professional negligence. Taylor alleged that Dr. Brill breached the standard of care by perforating her uterus and bowel during a surgical procedure and failed to inform her of these complications. The jury ruled in favor of Dr. Brill and denied all of Taylor’s claims.The Supreme Court of Nevada held that in a professional negligence action, evidence of informed consent and assumption of the risk are irrelevant and inadmissible when the plaintiff does not challenge consent. The court stated that even if a plaintiff gave informed consent, it would not vitiate the medical provider’s duty to provide treatment according to the ordinary standard of care. Furthermore, evidence of a procedure’s risks must still fall within Nevada's professional negligence statute, and a case-by-case analysis is required to determine whether the evidence should be excluded due to its potential to confuse the jury.The court also held that expert or physician testimony is not required to demonstrate the reasonableness of the billing amount of special damages. The court found that the district court had abused its discretion by prohibiting non-expert evidence demonstrating the reasonableness of the charges for medical treatment received by Taylor.Finally, the court ruled that evidence of insurance write-downs is not admissible under NRS 42.021(1), as it only contemplates evidence of actual benefits paid to the plaintiff by collateral sources.Based on these errors, the Supreme Court of Nevada reversed the judgment and remanded the case for further proceedings, including a new trial. View "Taylor v. Brill" on Justia Law

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In this case, the Supreme Court of the State of Nevada considered a dispute between LaMont’s Wild West Buffalo, LLC and Nathanial Terry. LaMont’s had acted as an order-buyer to procure 517 bison for Terry’s Montana ranch under an oral agreement. After the bison were delivered, Terry ceased communication and did not pay LaMont’s finder’s fee. LaMont’s sued Terry for breach of contract and related claims. In response, Terry filed frivolous counterclaims, which were later dismissed.After winning the case, LaMont’s sought attorney fees as sanctions under Nevada Rules of Civil Procedure (NRCP) 11 and Nevada Revised Statutes (NRS) 18.010(2)(b) and 7.085. However, the district court denied these motions, finding that LaMont’s had not complied with NRCP 11's safe harbor provision, a procedural requirement for seeking sanctions.On appeal, the Supreme Court of Nevada affirmed in part and reversed in part the lower court's decision. The Court agreed that LaMont’s had not complied with NRCP 11's procedural requirements, and thus was not entitled to attorney fees under this rule. However, the Court held that these procedural requirements did not apply to NRS 18.010(2)(b) and 7.085. The Court concluded that these statutes provided independent mechanisms for sanctions, and as such, the district court had erred in applying NRCP 11's procedural requirements to them. The case was remanded with instructions for the district court to determine whether LaMont’s was entitled to attorney fees under these statutes. View "LaMont's Wild W. Buffalo, LLC v. Terry" on Justia Law

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This case arose from a wrongful death and professional negligence action brought by Linda F. Smith, the mother of Kamario Mantrell Smith, an inmate who died after unsuccessful heart surgery and subsequent complications. The defendants were Christopher L. Igtiben, M.D., Dignity Health, and related entities. Smith filed her complaint on November 22, 2022, alleging that the defendants' failure to recognize her son's sickle cell anemia before ordering a CT scan with contrast ultimately led to his death. Dr. Igtiben filed a motion to dismiss the complaint, arguing that the applicable statute of limitations under NRS 41A.097(2) had expired. The district court denied the dismissal motion.The Court of Appeals of Nevada found that Smith had been placed on inquiry notice of potential professional negligence and wrongful death claims when she received her son's medical records in January 2020. Accordingly, NRS 41A.097(2) required her to file any professional negligence or wrongful death action within one year from that date. Because Smith did not file her complaint until November 2022, the statute of limitations had expired, and the district court should have dismissed the complaint as untimely. As a result, the court granted the writ of mandamus and directed the clerk to issue a writ instructing the district court to dismiss the complaint. View "Igtiben v. Eighth Jud. Dist. Ct." on Justia Law

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In this case, the Supreme Court of the State of Nevada considered whether the Nevada State Engineer had the authority to combine multiple existing hydrographic basins into one "superbasin" for the purposes of water administration and management based on a shared source of water. The State Engineer had combined seven basins into one superbasin, the Lower White River Flow System (LWRFS), after determining that the waters of these basins were interconnected such that withdrawals from one basin affected the amount of water in the other basins. The State Engineer also found that the previously granted appropriations of water exceeded the rate of recharge in the LWRFS. Various entities who owned water rights throughout the new superbasin challenged the State Engineer's decision, claiming that he lacked the authority to manage surface waters and groundwater jointly and that his decision violated their due process rights.The Supreme Court of the State of Nevada held that the State Engineer indeed had the authority to manage surface waters and groundwater conjunctively and to jointly administer multiple basins. The court also found that the State Engineer did not violate the rights holders' due process rights because they received notice and had an opportunity to be heard. The court reversed the lower court's decision that had granted the rights holders' petitions for judicial review and remanded the matter back to the lower court for further proceedings to determine whether substantial evidence supported the State Engineer's factual determinations. View "Sullivan v. Lincoln County Water District" on Justia Law

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In a personal injury case, Alejandro Lopez Aguilar, the appellant, had filed a lawsuit against Lucky Cab Co. and Adugna Demesash, the respondents. Before trial, Lucky Cab made an offer of judgment to Aguilar for a lump sum of $150,001, explicitly stating that this amount did not include prejudgment interest, attorney fees, and costs incurred to date. Aguilar accepted the offer. Lucky Cab sent Aguilar both a check for $150,001 and a stipulation and order for dismissal. However, Aguilar did not process the check or consent to the dismissal, arguing that Lucky Cab had not fully paid the offer amount as it had not yet paid any costs or prejudgment interest. The district court granted dismissal with prejudice, concluding that Lucky Cab was entitled to dismissal once it tendered payment within the stipulated window. Aguilar appealed.The Supreme Court of Nevada reversed the district court’s decision. The high court clarified that when an offer of judgment explicitly excludes costs, expenses, interest, and attorney fees, it promises two sums if accepted: (1) the principal amount for the claim(s), specified in the offer; and (2) a separate amount for costs, expenses, interest, and attorney fees that would be recoverable if a judgment were entered based on that offer. Consequently, under Nevada Rule of Civil Procedure (NRCP) 68(d)(2), an offeror cannot obtain dismissal unless they pay both the principal offer and the additional allowance for costs, expenses, interest, and attorney fees. In this case, Lucky Cab did not pay the pre-offer costs and interest that were promised and that Aguilar would be entitled to as a prevailing party. The case was remanded for the district court to determine the amount of awardable pre-offer costs and interest that Lucky Cab must pay to obtain dismissal. View "Aguilar v. Lucky Cab Co." on Justia Law

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In the case at hand, the Court of Appeals of the State of Nevada reversed and remanded a district court order that had dismissed a professional negligence action for being time-barred. The case was brought by Gina Engelson, as the special administrator of the estate of Lenore Meyer, against Dignity Health (doing business as St. Rose Dominican Hospital-Siena Campus) and Grape Holdings LLC (doing business as Sage Creek Post-Acute). Lenore Meyer had developed a severe bedsore while being treated at these facilities. Meyer's family alleged that the care provided by the facilities fell below the standard of care in multiple ways, including failing to timely and adequately treat the bedsore. Meyer eventually died, and exactly one year after her death, Engelson filed a professional negligence complaint against the facilities. The district court dismissed the complaint as time-barred, finding that the complaint was filed more than a year after the estate and its special administrator knew or should have known about the relevant legal injury.Upon review, the Court of Appeals found that the district court erred in dismissing the complaint as time-barred. The Court of Appeals clarified that an affidavit of merit, which is required to support a professional negligence-based wrongful death claim, need not opine as to the element of causation. The Court of Appeals concluded that the evidence did not irrefutably demonstrate that the estate or its special administrator discovered or should have discovered the legal injury more than a year before the filing of the complaint. Therefore, the Court of Appeals reversed the district court's order and remanded for further proceedings. View "Engelson v. Dignity Health" on Justia Law