A Busy Period for the Nevada Supreme Court
Business professionals often complain that the lack of case law in Nevada creates a climate of uncertainty for business decision-making. The Nevada Supreme Court has been working to change that and, in recent months, the Court was particularly productive, issuing numerous published opinions that affect Nevada’s businesses and the real estate market. Following are a few brief highlights.
Real Estate The fall-out from the 2008 housing bubble burst continues to play out in Nevada’s courts. Four noteworthy cases regarding security interests and foreclosures were recently decided by the Supreme Court. Hefetz v. Beavor dealt with a waiver of the one-action rule found in NRS 40.430. The statute generally requires a creditor seeking to recover the debt secured by real property to proceed first against the security prior to seeking recovery from the debtor personally. With limited exceptions set forth by statute, a guarantor, surety or debtor can waive the one-action rule. The Hefetz case held that to avoid waiver, a party must timely assert the one-action rule as an affirmative defense in the party’s responsive pleadings.
The Court was also active in the area of homeowner association law, particularly with regard to what is referred to as the “superpriority lien” found in NRS 116.3116. This “superpriority” gives a homeowner association’s (HOA) lien on real property for unpaid dues priority over other security interests. In 2014, the Court decided the SFR Investments case, which concluded that an HOA’s foreclosure of its lien extinguished the first deed of trust on the property. In other words, the HOA could end up owning property worth hundreds of thousands of dollars by simply trying to recover a few hundred dollars in assessments.
To read entire article click here
About McDonald Carano
McDonald Carano has been shaping Nevada’s legal, business, and policy landscape since our founding in 1949. With more than 60 lawyers and government affairs professionals working from offices in Reno, Las Vegas, and Carson City, we are Nevada’s law firm for business. Our local, national and international clients include Fortune 500 corporations, fast-growth and mid-market companies, entrepreneurs and startups, non-profit organizations, government entities, and high-net-worth individuals. Our attorneys deliver cross-discipline, one-stop, business law and government affairs counsel. Please visit mcdonaldcarano.com
You have chosen to send an email to McDonald Carano. The sending or receipt of this email and the information in it does not in itself create an attorney-client relationship. If you are not already a client, you should not provide us with information that you wish to have treated as privileged or confidential without first speaking to one of our lawyers. If you provide information before we confirm that you are a client and that we are willing and able to represent you, we may not be required to treat that information as privileged, confidential, or protected information, and we may be able to represent a party adverse to you.
I have read this and want to send an email.