Justia Nevada Supreme Court Opinion Summaries
Articles Posted in Trusts & Estates
New York Times Co. v. District Court
The case involves a Nevada-domiciled trust, managed by a Nevada family trust company, whose trustee petitioned the Second Judicial District Court of Nevada to seal confidential information and close all court proceedings under NRS 164.041 and NRS 669A.256. The district court sealed nearly all documents and concealed the existence of the case, citing concerns over revealing personal, financial, and business information, and later provided limited case information after media inquiries. Several media organizations, having reported on the matter—especially due to its connection to Rupert Murdoch and control over major media holdings—sought intervention to access court records and proceedings, arguing that the First Amendment presumption of public access applied.The probate commissioner recommended allowing media intervention but denying access, and the district court entered an order adopting this recommendation. The court interpreted the statutes as granting automatic and comprehensive confidentiality, finding that privacy and security concerns—heightened by the parties’ public profiles—constituted a compelling interest for sealing and closure. The district court also concluded it lacked discretion to consider redaction as an alternative and held that the statutes’ confidentiality provisions justified the broad closure, even after the Nevada Supreme Court’s decision in Falconi v. Eighth Judicial District Court recognized a First Amendment presumption of access in civil and family court proceedings.The Supreme Court of Nevada reviewed the district court’s decision, holding that NRS 164.041 and NRS 669A.256 permit only provisional sealing and require judicial discretion. The statutes do not automatically justify blanket sealing or closure, nor do they displace the common law or constitutional presumption of openness. The court found that the district court failed to make specific, non-speculative factual findings to justify the sealing and closure and did not adequately consider less restrictive alternatives. The Supreme Court granted the petition for a writ of mandamus, directing the district court to vacate its sealing order and conduct the required analysis for each document and hearing transcript. View "New York Times Co. v. District Court" on Justia Law
In re Goldstein Irrevocable Trust
A Nevada resident, Richard Goldstein, is the sole lifetime beneficiary of a discretionary trust created in Missouri and administered by Bank of America (BOA) from its St. Louis office. The trust was established by Goldstein’s father, and the contingent remainder beneficiaries are Goldstein’s sister and her children, none of whom reside in Nevada. Goldstein requested that BOA transfer the trust’s situs from Missouri to Nevada, but BOA denied the request after consulting its St. Louis team. Goldstein then filed a petition in the Ninth Judicial District Court in Douglas County, Nevada, seeking the court’s jurisdiction over the trust and a construction of the trust’s no-contest clause to allow him to challenge the situs without forfeiting his interest.The district court granted BOA’s motion to dismiss, finding it lacked personal jurisdiction over the nonresident trustee. The court determined that, although statutory in rem jurisdiction under NRS 164.010 was satisfied, BOA was a necessary and indispensable party to the proceeding, and personal jurisdiction was required. The court found that Goldstein failed to allege facts supporting either general or specific personal jurisdiction over BOA, and that BOA’s compliance with Nevada’s registered agent statute did not constitute consent to jurisdiction.The Supreme Court of Nevada reviewed the case and affirmed the district court’s dismissal. The court held that the statutory grant of in rem jurisdiction under NRS 164.010 does not override the constitutional due process requirements for personal jurisdiction. Because BOA, as trustee, was a necessary and indispensable party, personal jurisdiction was required. Goldstein failed to make a prima facie showing that BOA had sufficient minimum contacts with Nevada related to the petition, and BOA’s business presence in Nevada was unrelated to the trust administration at issue. Thus, dismissal was proper. View "In re Goldstein Irrevocable Trust" on Justia Law
Posted in:
Trusts & Estates
Saticoy Bay LLC Series 3580 Lost Hills v. Foreclosure Recovery Services, LLC
Mable Hrynchuk named Bryan Kenton as the sole beneficiary of her estate, which included her residential property. After her death, the homeowner’s association foreclosed on the property and sold it to Saticoy Bay LLC Series 3580 Lost Hills. Kenton, through his attorney-in-fact, Foreclosure Recovery Services, sought to redeem the property as a successor in interest. Saticoy Bay refused, asserting that Kenton was not the successor in interest and had no rights of redemption under Nevada law.The Eighth Judicial District Court of Clark County granted summary judgment in favor of Foreclosure Recovery Services, holding that Kenton was the successor in interest and had the right to redeem the property. Saticoy Bay appealed the decision.The Supreme Court of Nevada reviewed the case and affirmed the district court’s decision. The court held that a will beneficiary is immediately vested with a beneficial interest in devised property upon the testator’s death and is therefore the testator’s successor in interest for the purposes of NRS 116.31166. The court concluded that Kenton, as the sole beneficiary of Hrynchuk’s will, was her successor in interest and had the right to redeem the property. The court also determined that Foreclosure Recovery Services provided all necessary documentation to Saticoy Bay to establish its right to act on behalf of Kenton in redeeming the property. View "Saticoy Bay LLC Series 3580 Lost Hills v. Foreclosure Recovery Services, LLC" on Justia Law
Posted in:
Real Estate & Property Law, Trusts & Estates
THOMAS LABS, LLC VS. DUKES
Thomas Labs, LLC, an Arizona limited liability company, sued Amber Marie Dukes and her veterinary supply company for money owed on products delivered. During the litigation, Dukes died, and her counsel filed a notice of death but did not serve any nonparty successors or representatives. Thomas Labs moved to substitute Dukes' trust and trustee, Jason Hilliard, as parties, which the district court granted. Later, Dukes' will was filed in probate court, appointing her brother, Lynn Hill, as personal representative. Dukes' counsel then moved to dismiss the case, arguing that neither Hilliard nor the trust were proper representatives.The Eighth Judicial District Court dismissed the claims against Dukes, concluding that the 180-day deadline for substitution under NRCP 25(a) had passed. The court found that service of the notice of death on the parties alone triggered the deadline, even though no court-appointed executor or administrator existed when the notice was filed. The district court also denied Thomas Labs' motion to substitute a special administrator, Shara Berry, as untimely.The Supreme Court of Nevada reviewed the case and clarified that under NRCP 25(a), when a decedent's attorney files a notice of death, they must serve the notice on nonparty successors or representatives to start the 180-day deadline for substitution. The court also noted that NRS 7.075 requires the decedent's attorney to file a motion to substitute a proper party within 90 days of the client's death. The Supreme Court found that the 180-day deadline never started because Dukes' counsel failed to serve the nonparty successors or representatives. Consequently, the district court's dismissal was reversed, and the case was remanded for the substitution of a special administrator for Dukes. View "THOMAS LABS, LLC VS. DUKES" on Justia Law
Posted in:
Civil Procedure, Trusts & Estates
Lopez v. Lopez
The Supreme Court upheld the distribution decisions of the district court in the underlying divorce action to resolve community property disputes over property held in a revocable inter vivos trust and affirmed its decree of divorce, holding that there was no error.At issue before the Supreme Court was whether a revocable inter vivos trust holding community property must be named as a necessary party in a divorce action where the divorcing spouses are co-trustees, co-settlors, and beneficiaries. The Supreme Court affirmed the district court, holding (1) the revocable inter vivos family trust was not a necessary party to the divorce action and that the district court had the authority to distribute the trust's assets; and (2) the district court did not abuse its discretion in distributing the trust's assets between the parties as community property. View "Lopez v. Lopez" on Justia Law
Posted in:
Family Law, Trusts & Estates
Wishengrad v. Carrington Mortgage Services
The Supreme Court affirmed the orders of the district court granting summary judgment and dismissal in favor of a loan servicer and trustee in this case involving a home equity line of credit agreement (HELOC) with a defined maturity date and closed draw period, holding that there was no error.At issue before the Court was whether a loan servicer and trustee were entitled to foreclose upon Borrowers' residence due to Borrowers' failure to repay the funds provided to them under the terms of their HELOC. The Supreme Court affirmed, holding that the district court (1) did not err in determining that Borrowers' HELOC was both a negotiable instrument under Nev. Rev. Stat. 104.3104(1) and a promissory note under Nev. Rev. Stat. 104.3104(5), entitling the loan servicer and trustee to enforce the document under Nev. Rev. Code chapter 104 due to Borrowers' default; and (2) erred in finding that Borrowers' property was not owner-occupied and thus not subject to statutory requirements pertaining to foreclosures affecting owner-occupied housing, but the error was harmless. View "Wishengrad v. Carrington Mortgage Services" on Justia Law
Posted in:
Real Estate & Property Law, Trusts & Estates
In re Trust Agreement of Davies
The Supreme Court affirmed the decision of the district court holding that a revocable living trust agreement signed by the decedent and the named trustee sufficiently established the decedent's house as trust property, holding that the district court did not err or abuse its discretion.At issue was whether the revocable living trust agreement was effective to establish the decedent's house, his only real property, as an asset of the trust under Nevada law and to the satisfaction of the relevant statute of frauds. The district court confirmed the trustee and the house as trust property. The Supreme Court affirmed, holding (1) the trust agreement effectively funded the decedent's house to the trust; (2) the agreement satisfied the common law statute of frauds, Nev. Rev. Stat. 111.205(1); and (3) the decedent's living trust agreement funded the trust with his house. View "In re Trust Agreement of Davies" on Justia Law
Posted in:
Real Estate & Property Law, Trusts & Estates
In re Trust Agreement, 23 Partners Trust I
In these appeals relating several statutes and issues regarding the administration of a discretionary trust the Supreme Court held that Nev. Rev. Stat. 165.1207(1)(b)(5) does not provide a beneficiary whose only distribution in a trust is discretionary with a right to an accounting and that Nev. Rev. Stat. 165.180 does not provide a district court with an independent basis on which to order an accounting.At issue on appeal was what disclosures must be made by the trustees to the beneficiaries in the administration of the trust. The district court concluded that the beneficiaries were not entitled to an accounting. The Supreme Court reversed, holding (1) Nevada's trust statutes did not require the trustees to provide the beneficiaries with an accounting because the beneficiaries' sole distribution interests were discretionary; and (2) because the beneficiaries constituted "present" and "vested" beneficiaries, they were entitled to request and receive copies of certain trust instruments, may inspect the books of account and records of financial transactions and may receive an annual tax return, inventory, and accounting under the terms of the trust. View "In re Trust Agreement, 23 Partners Trust I" on Justia Law
Posted in:
Trusts & Estates
In re Trust of Burgauer
The Supreme Court granted a trustee's petition for a writ of prohibition and reversed the order of the district court concluding that a nonresident trustee sued in a trust administration case was subject to personal jurisdiction in Nevada, holding that the district court lacked specific personal jurisdiction over the trustee.Plaintiff filed the underlying petition requesting that the district court assume jurisdiction over the trust at issue, remove the trustee and appoint a successor trustee. The trustee sought dismissal of the petition based on lack of personal jurisdiction. The district court concluded that it had jurisdiction and granted a petition to distribute the trust property on Plaintiff's behalf. The court then held the trustee in contempt for violating a temporary restraining order. The Supreme Court granted a writ of prohibition, holding that the district court lacked specific personal jurisdiction over the trustee. View "In re Trust of Burgauer" on Justia Law
Posted in:
Civil Procedure, Trusts & Estates
Canarelli v. Eighth Judicial District Court
The Supreme Court held that the district court erred by disqualifying a district court judge because her impartiality could reasonably be questioned after she reviewed notes, produced in discovery, that the Supreme Court later determined to be privileged, holding that the district court erred by disqualifying Judge Sturman.Lawrence and Heidi Canarelli, along with attorney Edward Lubbers, served as former trustees of an irrevocable trust. Lubbers, who later became sole trustee, entered into a purchase agreement to sell the trust's ownership in the former trustees' business entities. Scott Canarelli petitioned to compel Lubbers to provide an accounting related to the purchase agreement. Lubbers died before Scott could depose Lubbers. Because the former trustees had disclosed documents containing Lubbers' notes, they attempted to claw back the documents. Judge Sturman allowed Scott to retain portions of the notes, but the Supreme Court held that the notes were privileged and undiscoverable. The former trustees moved to disqualify Judge Sturman as biased because she reviewed the privileged notes. The motion was denied. The Supreme Court granted writ relief, holding that the district court improperly disqualified Judge Sturman where the record did not show that Judge Sturman's review of the notes created bias or prejudice against the former trustees that would prevent fair judgment. View "Canarelli v. Eighth Judicial District Court" on Justia Law
Posted in:
Legal Ethics, Trusts & Estates