Justia Real Estate & Property Law Opinion Summaries

A third party purchased a Las Vegas property in 2005 with a loan from Countrywide Home Loans, secured by a deed of trust. In 2012, Countrywide assigned the deed of trust to the Bank of New York Mellon (BNYM). That same year, after the borrower defaulted on homeowners’ association (HOA) payments, the HOA foreclosed, refusing Countrywide’s tender for the superpriority portion of its lien, and conveyed the property to 8933 Square Knot Trust (SKT). BNYM later initiated a federal quiet title action, resulting in a ruling that its deed of trust survived the HOA sale. After BNYM began foreclosure proceedings, SKT sent a statutory information request under NRS 107.200, did not receive a response, and sued BNYM in state court to stop foreclosure, seeking to quiet title and asserting additional claims, including under NRS 107.300 for BNYM’s failure to respond.The Eighth Judicial District Court initially dismissed SKT’s complaint for failure to state a claim. On appeal, the Supreme Court of Nevada reversed the dismissal of the NRS 107.300 claim, remanding for further proceedings. On remand, BNYM filed a second motion to dismiss, raising new arguments about statutory standing and subject-matter jurisdiction. The district court granted this motion and dismissed the claim.The Supreme Court of Nevada held that NRCP 12(g)(2) generally prohibits a party from filing a successive motion to dismiss based on grounds that could have been raised in an earlier motion, except for challenges to subject-matter jurisdiction, which may be raised at any time. The Court concluded that BNYM’s statutory standing argument was improperly raised in the second motion, but its subject-matter jurisdiction argument was permissible. The Court further held that the district court had subject-matter jurisdiction at the outset and retained it throughout. The order of dismissal was reversed and the matter remanded. View "8933 SQUARE KNOT TRUST VS. BANK OF NEW YORK MELLON" on Justia Law

Several trusts, including the Lytle Trust and September Trust, own homes in a subdivision governed by a property owners association. After the Lytle Trust secured judgments against the association, it attempted to collect from other property owners by recording abstracts of judgment against their homes. September Trust and other property owners sued for declaratory and injunctive relief, resulting in the court striking the abstracts and enjoining the Lytles from enforcing their judgments against the homes. The Lytles later sought to collect through a receivership, prompting September Trust to seek contempt sanctions. The court found the Lytles violated the injunction and held them in contempt, awarding attorney fees to September Trust for defending the contempt judgment.The Eighth Judicial District Court in Clark County awarded September Trust attorney fees for the contempt proceedings and for defending those awards on appeal. September Trust’s attorneys initially billed at rates of $260-$265 per hour, which the district court used in its first two fee awards. For the third fee award, September Trust requested fees at higher “market” rates, resulting in a substantial markup over the actual fees billed. The district court granted this request, awarding fees calculated at the higher rates.The Supreme Court of the State of Nevada reviewed the appeal. The court held that, under Nevada’s contempt statute (NRS 22.100(3)), attorney fees awarded as compensation for civil contempt must be both reasonable and actually incurred. For parties with private counsel working at an agreed-upon hourly rate, the actual billing arrangement is a significant, though not necessarily controlling, factor in determining the reasonable fee. Because September Trust did not demonstrate its attorneys charged discounted rates for public-spirited or noneconomic reasons, the court found the higher-than-billed rates unjustified. The Supreme Court reversed the district court’s third fee award, remanding for recalculation at the rates actually billed, and affirmed the remainder of the order. View "LYTLE VS. SEPTEMBER TRUST, DATED MARCH 23, 1972" on Justia Law

Egger Enterprises, LLC acquired a ranch in Humboldt County, Nevada, which had previously shifted from flood to center pivot irrigation systems. This conversion left portions of water rights unused, and Egger sought to use the leftover water by acquiring adjacent public land through federal Desert Land Entry applications. Administrative delays between the Bureau of Land Management (BLM) and Nevada’s Division of Water Resources (NDWR) prolonged this process. Meanwhile, a nonparty challenged Egger’s applications, asserting that Egger had not used portions of its water rights for over 16 years, and thus, those rights were forfeited.The State Engineer found, by clear and convincing evidence, that certain water rights had not been put to beneficial use for five or more consecutive years and declared them forfeited. Egger petitioned for judicial review in the Sixth Judicial District Court, which initially reversed and remanded for lack of proper notice. Once proper notice was sent and Egger requested extensions of time, the State Engineer granted one extension but denied a subsequent request, ultimately issuing a declaration of forfeiture. Egger again sought judicial review, but the district court denied relief, finding the State Engineer’s decision supported by substantial evidence and holding that Egger was not entitled to equitable relief.The Supreme Court of Nevada reviewed the case and affirmed the district court’s denial of Egger’s petition. The court held that the State Engineer is not required to make findings on every statutory factor when considering an extension request under NRS 534.090(3)—only those relevant to the case. The court also found that substantial evidence supported the forfeiture decision and that Egger was not entitled to equitable relief, as there was no beneficial use of the water within the statutory period, nor any estoppel or error by the State Engineer. View "EGGER ENTER., LLC VS. STATE ENGINEER" on Justia Law

A mining company sought to secure water rights in the Dixie Creek-Tenmile Creek basin to support a mining operation. The Nevada State Engineer issued a decision concerning the relinquishment of groundwater rights by the Nevada Division of State Lands (NDSL), which effectively reduced the amount of water available for future appropriation in the basin. The mining company did not hold any established water rights in the basin but had filed several applications for future rights and had objected to NDSL’s filings. The State Engineer did not notify the company of his decision, and the company only learned of it months later through a third party.After learning of the decision, the company petitioned the Fourth Judicial District Court for judicial review, claiming the relinquishment adversely affected its interests and the prospects of its water rights applications. The State Engineer moved to dismiss, arguing that the company lacked standing and that the petition was untimely. The district court agreed, finding that the company was not an aggrieved party under NRS 533.450(1) and had no standing, and also found the petition was untimely.On appeal, the Supreme Court of Nevada reviewed the district court’s dismissal de novo. The Supreme Court determined that under NRS 533.450(1), unless a decision is made pursuant to certain enumerated statutes, the party seeking review must have a personal or property right affected by the challenged decision. The mining company had no such existing right; its interest was speculative and based only on pending applications. The Supreme Court affirmed the district court’s order dismissing the petition for lack of standing and did not reach the issues of timeliness or equitable relief. The holding clarifies that only parties with a personal or property right affected by a State Engineer’s decision may seek judicial review under the relevant statutory provision. View "Gold Standard Ventures (US) Inc. v. Thorson" on Justia Law

A residential property was subject to two homeowners' associations (HOAs), Aliante Master Association and Autumn Ridge at Aliante Community Association. The homeowner fell behind on monthly assessments, resulting in both HOAs recording liens against the property. Only Aliante proceeded with a foreclosure sale. Prior to the sale, the homeowner made payments to Aliante which, if applied to the oldest assessments first, would have satisfied the superpriority portion of Aliante’s lien. Collegium Fund LLC Series 16 purchased the property at the foreclosure sale and sought to quiet title against Deutsche Bank National Trust Company, which held the first deed of trust.The Eighth Judicial District Court of Clark County conducted a bench trial and ruled in favor of Collegium Fund. The district court found that Aliante applied the homeowner’s payments to the lien debt as a whole rather than to the oldest assessments, leaving a small part of the superpriority lien outstanding. Thus, it concluded the sale was a superpriority lien foreclosure that extinguished Deutsche Bank’s deed of trust. Alternatively, the court found that even if Aliante’s superpriority lien had been satisfied, the superpriority portion of Autumn Ridge’s lien also needed to be paid off to convert the sale to a subpriority foreclosure. Since no evidence showed payment to Autumn Ridge, the court held Collegium took the property free of the deed of trust.The Supreme Court of Nevada reviewed the case de novo and reversed the district court’s judgment. The Supreme Court held that, as a matter of law, the homeowner’s payments should be presumed to satisfy the superpriority portion of Aliante’s lien unless expressly directed otherwise. Additionally, the court held that payment of only the foreclosing HOA’s superpriority lien is required to convert the sale to a subpriority foreclosure; payment of the non-foreclosing HOA’s superpriority lien is not necessary. Therefore, the bank’s first deed of trust survived the foreclosure sale, and Collegium took title subject to the deed of trust. View "DEUTSCHE BANK NAT'L TR. CO. VS. COLLEGIUM FUND LLC SER. 16" on Justia Law

A restaurant operated by PFPCO.’s Noble Pie Parlor leased space in the El Cortez Hotel in Reno, Nevada, which was owned by El Cortez Reno Holdings, LLC. After initially peaceful relations, the parties’ relationship deteriorated due to disputes over property maintenance and incidents such as a gas leak and a stolen camera. Tensions escalated when El Cortez locked Noble Pie out, resulting in litigation that ended largely in Noble Pie’s favor, with the judgment affirmed on appeal. Later, Noble Pie permanently closed its restaurant, prompting El Cortez to allege breach of the lease’s agreed-use provision and file a new complaint. Noble Pie moved to dismiss; the district court granted the motion but allowed El Cortez to amend its complaint. After further procedural exchanges, El Cortez filed an amended complaint, and Noble Pie again moved to dismiss.The Second Judicial District Court, Washoe County, presided by Judge Egan K. Walker, reviewed El Cortez’s late opposition to the motion to dismiss and its request for an extension of time. El Cortez’s request, based on “professional courtesy,” was submitted just before the deadline. The district court denied the extension, finding no good cause for the delay and noting El Cortez’s pattern of tardiness in filings. The court treated El Cortez’s failure to timely oppose the motion as an admission under DCR 13(3), granted the motion to dismiss with prejudice, denied leave to further amend, and awarded attorney fees to Noble Pie as the prevailing party under the lease.On appeal, the Supreme Court of Nevada considered whether the district court abused its discretion in denying the extension, granting the motion to dismiss, refusing leave to amend, and awarding attorney fees. The Supreme Court of Nevada held that the district court did not abuse its discretion or err in any of these rulings and affirmed the judgment, emphasizing the importance of adhering to procedural rules in litigation. View "El Cortez Reno Holdings, LLC v. PFPCO.'s Noble Pie Parlor" on Justia Law

The case centers on a bakery and deli operator, Bagelmania Holdings, LLC, which leased property from Somerset Property, LLC. Together, they renovated the building for Bagelmania’s restaurant, hiring RDH Interests, Inc. as architect, JEM Associates West, Inc. as contractor, and Turpin & Rattan Engineering, Inc. for HVAC mechanical engineering. Following the renovation, Bagelmania and Somerset alleged construction defects and sued these entities for breach of contract, breach of the implied covenant of good faith and fair dealing, and negligence, with both plaintiffs represented by the same attorney.Prior attempts to initiate litigation were dismissed for failing to comply with Nevada’s NRS 11.258 requirements, which mandate an attorney affidavit of merit and supporting expert reports in nonresidential construction defect cases. The plaintiffs then filed a joint complaint supported by one affidavit and a set of expert reports. The defendants argued that each plaintiff was required to file separate affidavits and expert reports, and the Eighth Judicial District Court, Clark County, agreed, dismissing the case with prejudice for failure to comply with NRS 11.258, also awarding attorney fees, costs, and interest to the defendants.On appeal, the Supreme Court of the State of Nevada considered whether a single affidavit and set of expert reports sufficed under NRS 11.258 when coplaintiffs, represented by the same attorney, jointly brought identical claims arising from the same alleged defects. The Supreme Court held that, under such circumstances, separate affidavits and expert reports are not required. The Court found that the plaintiffs complied with the statute’s plain language and purpose and that the affidavit and reports met the statutory requirements. The Supreme Court reversed the district court’s dismissal, vacated the post-judgment award of fees, costs, and interest, and remanded for further proceedings. View "Bagelmania Holdings, LLC v. RDH Interests, Inc." on Justia Law

A developer entered into an agreement with a city to develop a downtown district, which included provisions for three large signs identifying the area as "Reno's Neon Line District." The city council approved the agreement and adopted it by ordinance. A nonprofit organization dedicated to scenic preservation objected, arguing that the signs were actually billboards prohibited by city code and that the developers lacked the necessary interest to enter into the agreement.The Second Judicial District Court in Washoe County partially granted the nonprofit’s petition for a writ of mandamus. The court found that the nonprofit had standing to challenge the agreement. It ruled that one sign (the archway sign) was a permissible area identification sign, but determined that the other two signs (the gas station sign and the cemetery sign) were, respectively, an on-premises advertising display and a billboard, both in violation of city code. The court severed the provisions for these two signs from the agreement and issued a writ preventing their construction.On appeal, the Supreme Court of Nevada reviewed whether the nonprofit had standing and whether the district court properly reclassified the signs. The Supreme Court held that the city’s classification of the signs as area identification signs was entitled to a presumption of validity and that substantial evidence supported this classification. The court further held that the nonprofit lacked standing to seek writ relief because it did not have a direct and substantial beneficial interest in the agreement, as the signs were not billboards and thus not covered by a prior settlement agreement with the city. The court also found that the nonprofit had waived any argument for representational standing. The Supreme Court of Nevada vacated the district court’s order and remanded the case for further proceedings consistent with its opinion. View "RENO REAL ESTATE DEVEL., LLC VS. SCENIC NEVADA, INC." on Justia Law

Baker Ranches, Inc., a Nevada corporation, holds decreed water rights in Baker and Lehman Creeks, which flow through Great Basin National Park. In 2015, the National Park Service (NPS) received a permit for a nonconsumptive instream flow in Baker Creek, requiring that the water not be removed and the full natural flow exit the park undiverted. Baker Ranches alleged that, since 2016, the NPS denied it permission to remove obstructions and allowed rock dams to be constructed, diverting water into caves and interfering with its water rights. While related federal litigation was ongoing, Baker Ranches requested the State Engineer to investigate these alleged violations.The State Engineer, after site visits and correspondence, decided in 2021 to hold the investigation in abeyance pending the outcome of the federal litigation. Baker Ranches then petitioned the Seventh Judicial District Court in White Pine County for judicial review or a writ of mandamus. The district court denied the writ but granted judicial review, finding the State Engineer’s decision to suspend the investigation arbitrary and capricious, and ordered the State Engineer to complete the investigation and render a final decision.On appeal, the Supreme Court of the State of Nevada considered whether the State Engineer had the authority to hold the investigation in abeyance and whether such a decision was subject to judicial review. The court held that the State Engineer possesses discretionary powers, including the implied authority to pause investigations pending related litigation. The court further determined that the State Engineer’s decision to suspend the investigation was interlocutory, not a final order, and therefore not subject to judicial review. As a result, the Supreme Court of Nevada vacated the district court’s order granting Baker Ranches’ petition for judicial review. View "SULLIVAN, P.E. VS. BAKER RANCHES, INC." on Justia Law

Michael Kosor, Jr., a homeowner in Southern Highlands, a Las Vegas residential common-interest community, sued the Southern Highlands Community Association (HOA) and its developer, Southern Highlands Development Corporation (SHDC), for declaratory and injunctive relief regarding the homeowners' right to elect the HOA's board of directors. Kosor claimed that the community had surpassed the 75% home-sale threshold, ending the declarant control period, yet SHDC continued to appoint three of the five board members, violating homeowners' voting rights. The HOA and SHDC disputed Kosor's interpretation and calculations.The Eighth Judicial District Court of Clark County denied Kosor's motion for a temporary restraining order, largely denied the HOA's and SHDC's motion to dismiss, and denied Kosor's motion for summary judgment. Kosor then sought to voluntarily dismiss the action without prejudice, but the court dismissed it with prejudice and awarded fees and costs to the HOA and SHDC. Kosor appealed but later withdrew his appeal, acknowledging that he could not reinstate it or raise the same issues again. Subsequently, the HOA and SHDC sought additional fees and costs incurred on appeal, prompting Kosor to file a motion under NRCP 60(b)(4), arguing that the district court lacked subject matter jurisdiction due to noncompliance with NRS 38.310's pre-suit ADR requirement.The Supreme Court of Nevada reviewed the case and held that NRS 38.310, which mandates pre-suit mediation or arbitration for certain HOA-related claims, is a procedural claim-processing rule, not a jurisdictional requirement. The court determined that the district court had jurisdiction despite the parties' noncompliance with NRS 38.310 and properly denied Kosor's motion to vacate its judgment and fee-award orders as jurisdictionally void. The Supreme Court of Nevada affirmed the district court's decision. View "KOSOR VS. S. HIGHLANDS CMTY. ASS'N" on Justia Law