Justia Nevada Supreme Court Opinion Summaries
Articles Posted in Contracts
Khan v. Bakhsh
Appellants agreed to purchase a restaurant and real property on which the restaurant was located from Respondent. After Appellants failed to make payments on the promissory note, Respondent filed an action against Appellants to recover the principal and unpaid interest. According to Respondent, a third buy-and-sell agreement between the parties was the operative agreement. But during trial, Appellants presented evidence that a fourth written agreement, which was allegedly later destroyed by Respondent or his brother, existed containing the agreed-upon purchase price and terms of the sale. The district court concluded that Appellants' evidence of the destroyed fourth agreement was barred by the statute of frauds because Appellants failed to produce the written agreement. The court then found that Appellants breached the third agreement and entered judgment for Respondent. The Supreme Court reversed, holding that the statute of frauds does not apply to a writing that is subsequently lost or destroyed, and oral evidence is admissible to prove the existence and terms of the lost or destroyed writing. Remanded. View " Khan v. Bakhsh" on Justia Law
Bielar v. Washoe Health Sys., Inc.
Appellant received treatment at Hospital for injuries she sustained in an automobile accident. Appellant granted two statutory liens to Hospital on settlement proceeds she obtained from the tortfeasor for hospital services rendered. Appellant subsequently settled her case against the tortfeasor, and the tortfeasor's insurer (Insurer) agreed to pay Appellant $1.3 million in exchange for Appellant's agreement to indemnify Insurer from all healthcare provider liens. Hospital subsequently sued Insurer, and Appellant tendered to Hospital all money it asserted was due. Appellant then filed a complaint against Hospital, alleging that Hospital overcharged her pursuant to Nev. Rev. Stat. 439B.260(1), which provides that hospitals must reduce charges by thirty percent to inpatients who lack insurance "or other contractual provision for the payment of the charge by a third party." The district court entered judgment in favor of Hospital, finding that Appellant's settlement agreement with the tortfeasor rendered Appellant ineligible for the thirty percent statutory discount. The Supreme Court reversed in part, holding that a patient's eligibility is determined at the commencement of hospital services, and therefore, a later settlement agreement with a third party for the payment of such services does not disqualify the patient for the statutory discount. View " Bielar v. Washoe Health Sys., Inc." on Justia Law
Frei v. Goodsell
Appellant sued the trustee of his deceased wife's estate, claiming that the trustee improperly transferred Appellant's assets into the trust. Appellant also sought to disqualify the attorney who prepared the trust documents (Attorney) from representing the trustee based on the district court's conclusion that a prior attorney-client relationship existed between Appellant and Attorney, creating a conflict of interest. After the trust litigation settled, Appellant sued Attorney for legal malpractice due to Attorney's failure to verify Appellant's intentions before preparing he documents for his signature. Before trial, Appellant sought to preclude Attorney from arguing that an attorney-client relationship did not exist because, under the doctrine of issue preclusion, Attorney could not deny the existence of an attorney-client relationship. The district court denied Appellant's motion. During trial, the district court ruled that evidence of Appellant's intent in executing the documents was precluded by the parol evidence rule. The Supreme Court affirmed, holding (1) the district court properly refused to apply the doctrine of issue preclusion because the issue of an attorney-client relationship between Appellant and Attorney was not necessarily litigated in the trust action; and (2) the district court did not err in applying the parol evidence rule. View " Frei v. Goodsell" on Justia Law
Halcrow, Inc. v. Dist. Court
After a general contractor (Perini) was sued in connection with alleged reinforcing steel defects on commercial construction project, Perini filed a counterclaim against the steel installer (Century) and the company to whom the steel installer assigned its assets (PCS). Century and PCS in turn filed third- and fourth-party complaints against several entities, including the company that provided structural engineering services for the project (Halcrow), alleging negligence, indemnity, contribution, an declaratory relief. Halcrow moved to dismiss the third- and fourth-party complaints, arguing that unintentional tort claims against design professionals in commercial construction projects are barred when the claimant incurs purely economic losses. The district court granted Halcrow's motion. The district court subsequently granted Century's and PCS's motions to amend their complaints to allege a claim for negligent misrepresentation. Halcrow then filed this petition for extraordinary relief. The Supreme Court issued the writ and directed the district court to vacate its order granting PCS and Century leave to amend their third- and fourth-party complaints, holding that, in commercial construction defect litigation, the economic loss doctrine applies to bar claims against design professionals for negligent misrepresentation where the damages alleged are purely economic. View "Halcrow, Inc. v. Dist. Court" on Justia Law
Galardi v. Naples Polaris, LLC
This dispute arose out of a written option contract under which Respondent had the right to purchase real property from Appellants for $8 million. The property was subject to a deed of trust securing approximately $1.3 million in debt. At issue was whether the Respondent or Appellants were required to pay off the $1.3 million debt. The district court granted summary judgment for Respondent, concluding that the option contract required Appellants to deliver clear title, meaning Appellants were required to remove the $1.3 encumbrance for a net $6.7 option price. Appellants appealed, arguing that the option contract contemplated that Respondent take title subject to preexisting encumbrances, so that Appellants received the full $8 million option price. The Supreme Court affirmed, holding that the district court properly interpreted the option contract and that the contract placed responsibility for the $1.3 million debt on Appellants' side of the ledger. View " Galardi v. Naples Polaris, LLC" on Justia Law
Holcomb Condo. Homeowners’ Ass’n v. Stewart Venture, LLC
Respondents were involved in the development and construction of Holcomb Condominiums (Condos). Appellant was the homeowners' association for Condos. Appellant filed, on behalf of itself and all condominium homeowners, a constructional defect complaint against Respondents, alleging a variety of defects and claims for negligence and breach of warranty. The district court dismissed Appellant's complaint as time-barred by the two-year contractual limitations period found in nearly identical arbitration agreements attached to each of the homeowners' purchase contracts. The court also denied as futile Appellant's request to amend its complaint to add causes of action for willful misconduct and fraudulent concealment based on missing roof underlayment, finding that the claim would also be time-barred by the contractual limitations period. The Supreme Court reversed and remanded, holding (1) arbitration agreements containing a reduced limitations period that are attached to and incorporated into purchase contracts are unlawful; (2) the district court erred in finding Appellants' negligence-based claims and breach of warranty claims were time-barred; and (3) because the contractual limitations provision was unenforceable, the district court's denial of the motion to amend on this basis was improper. View "Holcomb Condo. Homeowners' Ass'n v. Stewart Venture, LLC" on Justia Law
Garcia v. Prudential Ins. Co. of Am.
Appellant was the beneficiary of three life insurance policies insuring her husband. After the death of Appellant's husband, Appellant and one of the insurers (Insurer) disputed how the policy proceeds would be paid to Appellant. Appellant, a Nevada domiciliary, filed a complaint against Insurer on behalf of herself and a nationwide class of similarly situated persons in federal court in New Jersey, asserting claims for breach of contract, breach of fiduciary duty, and unjust enrichment. Sitting in diversity, the U.S. district court granted Insurer's motion to dismiss without prejudice. Appellant subsequently filed this action against Insurer in a Nevada state court, asserting claims for breach of fiduciary duty, breach of duties arising from a confidential relationship, and breach of the covenant of good faith and fair dealing. The district court dismissed all of Appellant's claims on issue preclusion grounds. The Supreme Court affirmed, holding (1) here, New Jersey preclusion law applies under the U.S. Supreme Court's decision in Semtek International Inc. v. Lockheed Martin Corp.; and (2) under New Jersey law, Appellant would be precluded from relitigating her claims in Nevada. View "Garcia v. Prudential Ins. Co. of Am." on Justia Law
Butwinick v. Hepner
Respondents brought an action against Appellants, alleging breach of contract and fraud- and tort-based claims based on their purchase of two furniture stores from Appellants. The district court entered judgment for Respondents. The court allowed Respondents to rescind the agreement and awarded them damages. Although they appealed the judgment, Appellants did not obtain a stay of execution. Thus, despite the pending appeal, Respondents obtained a writ of execution on the judgment, allowing them to execute against one appellant's personal property. Respondents subsequently purchased Appellants' rights and interests in the district court action. Respondents moved to substitute as real parties in interest and dismiss the appeal on the basis that they acquired Appellants' claims and defenses at the sheriff's sale. The Supreme Court denied Respondents' motion, holding that Nevada's judgment execution statutes do not include the right to execute on a party's defenses to an action, as permitting a judgment creditor to execute on a judgment in such a way would cut of a debtor's defenses in a manner inconsistent with due process principles. View "Butwinick v. Hepner" on Justia Law
United Rentals Highway Techs. v. Wells Cargo Inc.
Appellant contracted to provide traffic control on a road improvement project coordinated and facilitated by Respondent. The parties' contract required Appellant to indemnify, defend, and hold harmless Respondent to the extent that Appellant caused any injury or damage. After a woman was injured in connection with the road improvement project and sued the parties for negligence, Respondent sought indemnification and defense from Appellant. Appellant, however, denied that it was obligated to provide indemnification and defense. After a jury trial in which the jury found Appellant did not proximately cause the underlying accident, the district court granted Respondent's motion to enforce indemnification, concluding that Appellant presented no evidence to suggest a lack of its potential liability under the contract. The Supreme Court reversed, holding (1) a plain reading of the contractual indemnity language imposed a causal limitation on Appellant's duty to indemnify and defendant Respondent; and (2) because the jury found Appellant did not proximately cause the underlying accident, Appellant did not have a duty to indemnify or defend Respondent. View "United Rentals Highway Techs. v. Wells Cargo Inc." on Justia Law
Grisham v. Grisham
In this divorce action, Appellant Michael Grisham and Respondent Susie Grisham negotiated based on a draft property settlement agreement (PSA). At the end of an uncontested divorce prove-up hearing, the district court orally accepted the settlement. Michael, however, refused to sign the PSA. After several months, Susie moved for entry of a divorce decree based on the PSA. The district court entered a final written decree incorporating the PSA and denied Michael's motion for mistrial. The Supreme Court affirmed, holding that the district court's procedure complied with applicable district court rules, which obviated any issue as to the statute of frauds, and the PSA otherwise met the requirements for an enforceable contract. View "Grisham v. Grisham" on Justia Law