Justia Commercial Law Opinion SummariesArticles Posted in Nevada Supreme Court
In re Fontainebleau Las Vegas Holdings
A casino-hotel filed for bankruptcy. Appellant, the administrative agent for a syndicate of lenders that loaned money to the casino's developers, and Respondents, contractors, subcontractors, and suppliers who asserted statutory liens against the property, entered into a dispute over the priority of their respective liens on the property. The Supreme Court accepted questions certified to it from the bankruptcy court regarding the application of contractual subordination, equitable subordination, and equitable subrogation in the context of a mechanic's lien. Appellant moved to strike Respondents' appendix, contending that the included documents contained information beyond the facts certified to the Court by the bankruptcy court. Respondents opposed the motion, arguing that the additional information was necessary for the Court's understanding of the certified legal questions. The Supreme Court granted the motion to strike after determining that Respondents' appendix was filed solely to contradict the certification order and the complaint, holding that while an appendix may be filed to assist the Court in understanding the matter, it may not be used to controvert the facts as stated in the certification order. View "In re Fontainebleau Las Vegas Holdings" on Justia Law
Holt v. Reg’l Tr. Servs. Corp.
Appellants signed a note secured by a deed of trust on their home. Respondents, Regional Trustee Services Corporation (RTSC) and One West Bank, were the trustee and beneficiary of the deed of trust. After Appellants stopped making payments, RTSC initiated judicial foreclosure. Appellants elected mediation under the foreclosure mediation program (FMP), which provides proof of compliance with the state's law requiring mediation upon homeowner request before a nonjudicial foreclosure sale can proceed on an owner-occupied residence. When RTSC failed to attend the mediation, the district court declared RTSC in bad faith and directed that RTSC be denied the FMP certificate needed to conduct a valid foreclosure sale. RTSC later reinitiated nonjudicial foreclosure. Appellants sought to enjoin Respondents from pursuing foreclosure, arguing that the order denying the FMP certificate permanently prevented foreclosure. The district court denied Appellants' request and directed the parties to return to FMP mediation. The Supreme Court affirmed, holding that under the circumstances of this case, a lender who has been denied an FMP certificate for failing to mediate in good faith can reinitiate foreclosure by means of a new notice of default and election to sell and rescission of the original, thereby restarting the FMP process. View "Holt v. Reg'l Tr. Servs. Corp." on Justia Law
Chateau Vegas Wine v. S. Wine & Spirits
Southern Wine and Spirits, an importer and wholesaler of certain Bordeaux wines and French champagnes in Nevada, was granted the exclusive Nevada importer of certain Bordeaux wines and French champagnes. Southern Wine filed suit against Appellants, two importers and wholesalers of liquor in Nevada, after Southern Wine discovered Appellants were importing and selling the wines and champagnes in Nevada. Southern Wine sought a permanent injunction, alleging that Appellants' unlawful importation and sales of the wines and champagnes violated its exclusive trade and franchise rights under Nev. Rev. Stat. 369 and 597. The district court permanently enjoined Appellants from further importing and selling the wines and champagnes. The Supreme Court affirmed, holding that the district court properly granted injunctive relief where (1) Southern Wine complied with the requirements of the statutes, and therefore, Southern Wine established exclusive trade rights to import the wines and champagnes; (2) substantial evidence supported the district court's finding that Appellants infringed on Southern Wine's exclusive trade rights; and (3) Southern Wine was successful in demonstrating the merits of its action for permanent injunctive relief. View "Chateau Vegas Wine v. S. Wine & Spirits" on Justia Law
Walters v. Dist. Court
A group of investors (Borrowers) bought a golf course by contributing part of the purchase amount in cash and financing the remaining balance through a nonrecourse loan with Community Bank of Nevada (CBN). To facilitate the sale, William Walters entered into a separate guaranty with CBN where he personally guaranteed the loan. Prior to the Borrowers' default and the eventual foreclosure of the golf course, Walters filed a complaint against CBN, asserting causes of action for declaratory relief and breach of the implied covenant of good faith and fair dealing. CBN counterclaimed, asserting breach of guaranty against Walters. The district court granted summary judgment in part to CBN, concluding that no genuine issues of material fact existed as to Walters' guaranty liability to CBN. Walters filed a petition for a writ compelling the district court to vacate its partial summary judgment in favor of CBN and to preclude CBN from recovering any amount from Walters under his guaranty. The Supreme Court denied the writ, holding (1) CBN complied with the deficiency application requirements of Nev. Rev. Stat. 40, and (2) CBN was not attempting double recovery because double recovery was not an issue in this case. View "Walters v. Dist. Court" on Justia Law
Daane v. Eighth Judicial Dist. Court
Petitioner William Daane defaulted on a loan secured by a mortgage on his residence. CR Title Services, the trustee of the deed of trust, filed a notice of default to initiate the foreclosure process. Daane opted to participate in the Foreclosure Mediation Program (Program). The district court later found that CitiMortgage, the beneficiary of the deed of trust, had participated in the mediation in bad faith. After the foreclosure process was reinitiated, Daane again elected for mediation in the Program. Daane subsequently brought a petition for a writ of prohibition, seeking to preclude the Program from proceeding with further mediations or issuing a letter of certification. The Supreme Court denied the writ, holding that a writ of prohibition was unwarranted to preclude the Program from conducting further proceedings with respect to Daane's residence because he had an adequate remedy in the ordinary course of law.
Otak Nevada, L.L.C. v. Dist. Court
At issue in this extraordinary writ proceeding was whether Nev. Rev. Stat. 11.259(1) compels dismissal where the initial pleading in an action alleging nonresidential construction malpractice was served without filing the attorney affidavit and expert report required by Nev. Rev. Stat. 11.258(1) and (3). The Supreme Court granted the writ, holding that a defective pleading served in violation of section 11.258 is void ab initio and of no legal effect and, thus, cannot be cured by amendment. The Court held that because the initial pleadings served by certain real parties in interest in this case did not include the attorney affidavit and expert report as required by section 11.258, those pleadings were void ab initio, and the district court did not have discretionary authority to allow the parties to amend their pleadings to cure their failure to comply with section 11.258.