High Noon at Arlington Ranch Homeowners Ass’n v. Eighth Judicial District Court

Homeowners’ associations (HOAs) have representational standing to represent unit owners who purchase their units after litigation commences on claims alleging construction defects, but HOAs do not have standing under Nev. Rev. Stat. 116.3102(1)(d) to bring, or continue to pursue, claims for unit owners who sell their units after the litigation commences.In this case, an HOA filed a complaint against the real party in interest on its own behalf and on behalf of all of the HOA unit owners, alleging, inter alia, breach of implied warranties of workmanlike quality and habitability and breach of contract. The district court granted partial summary judgment for the real party in interest, concluding that the HOA could only maintain an action for those owners who had owned their units continuously since the HOA first filed its complaint. The Supreme Court granted a writ of mandamus requested by the HOA, holding (1) the HOA had standing in the construction defect action to represent unit owners who purchased units after the initiation of the underlying litigation; but (2) the HOA did not have standing to represent unit owners who sold their units after the litigation commenced. View "High Noon at Arlington Ranch Homeowners Ass’n v. Eighth Judicial District Court" on Justia Law