Justia Nevada Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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In 2009, Respondents hired a construction company (Company) to construct a shooting range. Respondents paid Company's bills as the construction continued through the summer and fall. By September, Company had billed $48,810. Respondents paid $46,000 by October but then refused to pay anything further. Soon thereafter, Company quit the project, which was largely finished. The range opened for business soon after. At the end of the year, Respondents installed soundproofing to the building. In March 2010, Company recorded its mechanics lien. In August, Company filed a complaint against Respondents seeking to recover $40,000 in damages and costs. The district court held the lien was not timely and was therefore frivolous and ordered the lien released, ruling that the "work of improvement" of constructing the shooting range concluded more than ninety days before Company filed the lien. At issue on appeal was whether the soundproofing constituted a "work of improvement." The Supreme Court affirmed, holding that the district court did not clearly err in finding that the soundproofing was not within the scope of the "work of improvement" or finding that the lien was untimely and frivolous. View "I. Cox Constr. Co. v. CH2 Invs., LLC" on Justia Law

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Respondents sought to permanently enjoin their neighbor, Appellant, from constructing a wind turbine on his residential property, asserting that the proposed turbine would constitute a nuisance. The district court agreed and granted the permanent injunction. The Supreme Court affirmed the order granting a permanent injunction prohibiting the wind turbine's construction, holding (1) the aesthetics of a wind turbine alone are not grounds for finding a nuisance, but a nuisance in fact may be found when the aesthetics are combined with other factors, such as noise, shadow flicker, and diminution in property value; and (2) substantial evidence supported the district court's finding that the proposed residential wind turbine would be a nuisance in fact. View "Sowers v. Forest Hills Subdivision" on Justia Law

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Appellant Corporation executed a promissory note secured by a deed of trust on property to Respondents. Appellant did not pay annual property taxes, and a delinquent-tax certificate was issued. Because Corporation also did not make the payments due on Respondents' note, Respondents recorded a notice of default and election to sell. After a nonjudicial foreclosure sale, Respondents purchased the property and brought this action against Appellants for the deficiency. Because Respondents did not record the trustee's deed until after the two-year period to redeem the property from the delinquent-tax certificate ran out, the county treasurer held the property in trust until Respondents paid the back taxes and penalties due. Appellants argued that Respondents could not validly foreclose while the county treasurer held the property in trust on the delinquent-tax certificate and that, without a valid foreclosure, Respondents were precluded from recovering a deficiency judgment. The district court disagreed and awarded Respondents a deficiency judgment against Corporation. The Supreme Court affirmed, holding that the foreclosure sale was proper, and thus, the deficiency judgment was also proper. View "Bldg. Energetix Corp. v. EHE, LP" on Justia Law

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The City brought an eminent domain action to acquire a forty-foot-wide strip of real property from Respondent. Respondent's predecessor-in-interest originally acquired title to this property through a federal land patent that reserved a thirty-three-foot-wide easement across the strip of property for "roadway and public utilities purposes." The City asserted that it sought to utilize its existing rights to the thirty-three-foot right-of-way under the federal land patent's easement and to attain, by condemnation, the remaining seven-foot portion of land. The district court granted Respondent partial summary judgment and awarded Respondent $394,490 in compensation, concluding that the City lacked any right to use the easement because the federal patent did not specifically name the City. The Supreme Court reversed, holding that the district court erred in (1) determining that the federal land patent did not create a thirty-three-foot-wide easement, as the plain meaning of the patent's language created a valid public easement; (2) determining that the City's proposed use of the easement constituted a taking, as the use of this easement was within its scope and did not strip Respondent of a property interest; and (3) awarding Respondent just compensation and attorney fees. View "City of Las Vegas v. Cliff Shadows Prof'l Plaza, LLC" on Justia Law

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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

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Petitioner, a developer, helped construct a planned development (the "community"). The community HOA sued the developers, sellers, and builders of the development, including Petitioner, on behalf of the individual homeowners, alleging construction-defect-based claims for breach of implied and express warranties and negligence. Thereafter, the community HOA filed a motion for the district court to determine that its claims satisfied the class action requirements of Nev. R. Civ. P. 23. The district court concluded that the HOA did not need to satisfy the requirements of Rule 23 and thus allowed the action to proceed without conducting a class action analysis. Petitioner sought a writ of mandamus or prohibition, claiming that the district court acted arbitrarily and capriciously by refusing to undertake a class action analysis. The Supreme Court granted Petitioner's petition to the extent that it directed the district court to analyze the Rule 23 factors in this case. In so doing, the Court clarified the application of D.R. Horton v. District Court when a homeowners' association seeks to litigate construction-defect claims on behalf of its members under Nev. Rev. Stat. 116.3102(1)(d). View "Beazer Homes Holding Corp. v. Dist. Court " on Justia Law

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Appellant, a Nevada homeowner, elected mediation pursuant to the Nevada Foreclosure Mediation Program (FMP) to produce a loan modification. When the mediation did not result in a loan modification, Appellant filed a petition for judicial review asking for sanctions against Respondent, BAC Home Loans Servicing, LP (BAC), alleging that BAC failed to comply with the FMP's document production and good faith requirements. The district court rejected Appellant's petition, finding (1) there was no irregularity as to the submitted documents; (2) BAC met its burden of showing a lack of bad faith; and (3) absent a timely appeal, a letter of certification would issue. The Supreme Court affirmed, holding (1) although BAC's document production lacked a key assignment, Appellant filled the gap with a document he produced; and (2) the district court therefore did not abuse its discretion in denying sanctions and allowing the FMP certificate to issue. View "Einhorn v. BAC Homes Loans Servicing" on Justia Law

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Petitioners, corporate entities and an individual that serviced and brokered loans for the acquisition and development of real property, faced a civil suit and a criminal investigation in connection with an alleged Ponzi scheme. Petitioners filed a motion with the district court in their civil case to stay any depositions and written discovery that would require their employees and officers to make testimonial statements, asserting that the evidence could be used by the FBI in their criminal investigation. The district court summarily denied the motion without prejudice. Petitioners subsequently petitioned the Supreme Court for a writ of mandamus or prohibition directing the district court to grant their motion to stay. The Supreme Court denied the requested relief, holding that the district court did not abuse its discretion in determining that, on balance, the interests of Petitioners in a stay did not outweigh the countervailing interests involved and in therefore denying the motion to stay. View "Aspen Fin. Servs. v. Dist. Court" on Justia Law

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Respondent issued an eminent domain action against Appellants. The district court awarded Respondent possession of the property, and the jury found Respondent owned Appellants $4.4 million in just compensation. Appellants appealed and Respondent cross-appealed. While the appeals were pending, Respondent filed a notice of its intent to abandon the condemnation proceedings and a motion to vacate the judgment of condemnation. The district court concluded it lacked jurisdiction to enter an order vacating the judgment while an appeal was pending but certified its inclination to grant the motion to vacate based on its conclusion that Respondent was entitled to abandon the proceedings. The Supreme Court held (1) a public agency may abandon an eminent domain action after it has paid just compensation and the district court has entered a final order of condemnation, but before the resolution of issues pending on appeal; (2) the district court retains jurisdiction to address a notice of abandonment and motion to dismiss, even while an appeal of the matter is pending in the Supreme Court; and (3) thus, the motion to remand was denied as moot because a remand was unnecessary for the district court to decide the motion to dismiss. View "Gold Ridge Partners v. Sierra Pac. Power Co." on Justia Law

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In this appeal, which arose out of Nevada's Foreclosure Mediation Program (FMP), the Supreme Court examined the note-holder and beneficial-interest status of a party seeking to foreclose. The Court concluded (1) to participate in the FMP and ultimately obtain an FMP certificate to proceed with the nonjudicial foreclosure of an owner-occupied residence, the party seeking to foreclose must demonstrate that it is both the beneficiary of the deed of trust and the current holder of the promissory note; (2) when the Mortgage Electronic Registration System, Inc. (MERS) is the named beneficiary of the deed of trust and a different entity holds the promissory note, the note and deed of trust are split, making nonjudicial foreclosure by either improper, but any split is cured when the promissory note and deed of trust are reunified; and (3) because the foreclosing bank in this case became both the holder of the promissory note and the beneficiary of the deed of trust, it had standing to proceed through the FMP. View "Edelstein v. Bank of New York Mellon" on Justia Law