Law Commons^™

Limiting Overall Hospital Costs By Capping Out-Of-Network Rates, David Orentlicher, Kyra Morgan, Barak Richman

Scholarly Works

Contract theory offers a simple and wildly effective solution to surprise bills: Hospital admissions contracts are contracts with open price terms, which contract law imputes with market rates. This solution not only obviated the costly, time-consuming, and complicated (and still unimplemented) legislative fix in the No Surprises Act, but it also is a superior solution since it introduces superior incentives to disclose, compete, and economize.

Using data from the Nevada Department of Health and Turquoise Health, this paper explores the theory and empirics of employing contract law's solution to hospital surprise bills and its superiority over other legislative interventions.

Elk Point Country Club Hoa V. K. H. Brown, Llc, 138 Nev. Adv. Op. 60 (Aug. 18, 2022), Alexander Provan

Nevada Supreme Court Summaries

When a planned communities’ governing documents restrict real property use to residential use only, NRS 116.340(1)(a) permits a real property owner to use real property for transient commercial use so long as the governing documents of the community do not prohibit such use. Transient commercial use is the use of property, for remuneration, as transient lodging, if the term of occupancy is thirty days or less—i.e., short-term rentals. It is a reversable error to interpret bylaws and governing documents as prohibiting rentals when they use the terms “tenants” and

Sr Construction, Inc. V. Peek Brothers Construction, Inc., 138 Nev. Adv. Op. 41 (June 2, 2022), Candace Mays

Nevada Supreme Court Summaries

The Supreme Court, reviewing an appeal from the district court’s denial to compel arbitration, contemplated the scope of and applicability of a master subcontractor agreement’s arbitration clause when the language did not unequivocally compel subcontractors to arbitrate disputes. The Court held that where the arbitration provision of a contract is broad, the presumption toward arbitrability prevails.

Rejecting Word Worship: An Integrative Approach To Judicial Construction Of Insurance Policies, Jeffrey W. Stempel, Erik S. Knutsen

Scholarly Works

Litigation over insurance coverage is really a quest for meaning: Does the insurance policy cover the loss at issue? Construing the insurance policy, courts are attempting to give legal effect to what the document purports to command. But what were the intentions and expectations of insurer and insured? Do those intentions even matter? Or is only the written text of the policy relevant to the coverage result? Courts approaching these questions typically frame the interpretative choice as one of strict textualism versus a more contextual, functionalist approach.

In many, perhaps even most situations, text and context align to create an …

What Is The Meaning Of "Plain Meaning", Jeffrey W. Stempel

Scholarly Works

The American approach to construing texts (statutes, regulations, contracts and documents generally) stresses decision through determining the “plain meaning” of the document based on the court’s reading of the text. Where the court finds plain meaning on the face of text, it generally refuses to consider additional contextual information or extrinsic evidence of meaning.

Notwithstanding its status as the dominant approach to interpretation, the plain meaning concept has not been well defined or operationalized. Despite judicial confidence in the plain meaning approach, courts have wisely been willing to sidestep it and eschew the rather clear facial meaning of text when …

How To Make A Dead Armadillo: Consumer Contracts And The Perils Of Compromise, Jeffrey W. Stempel

Scholarly Works

The ALI's proposed Restatement of the Law, Consumer Contracts ("RLCC") has managed to alarm both corporate America and consumer advocates, including half the nation's attorneys general. To some extent, the RLCC is yet another victim of the nation's increasing polarization and the rise of partisanship within the legal profession. But the RLCC suffers from self-inflicted wounds through questionable endorsement of problematic case law on contract formation as well as its goal of a well-intentioned but flawed "Grand Bargain" that arguably seized a middle ground disliked, for different reasons, by both consumer and business advocates. The RL CC stepped into this …

Rose, Llc., V. Treasure Island, Llc., 135 Nev. Adv. Op. 19 (Jun. 6, 2019), Ben Coonan

Nevada Supreme Court Summaries

The Court found that (1) strict compliance with contract notice requirements is unnecessary if the defaulting party receives actual notice and no prejudice resulted from failure to comply strictly with the contract terms; and (2) a party is not necessary under NRCP 19 unless the other parties to the litigation cannot obtain complete relief in that party’s absence.

Boesiger V. Desert Appraisals, Llc, 135 Nev. Adv. Op. 25 (July 3, 2019), Jeff Garrett

Nevada Supreme Court Summaries

The Court held that Appellants provided insufficient evidence to show that Respondents had a duty to Appellant or breached their duty to Appellant. The Appellants failed to provide the required expert testimony necessary for a case concerning the professional conduct of a profession whose standards and procedures are not known to the public. Additionally, because the contract between the Appellants and the Respondents did not expressly name the Appellants as third-party beneficiaries, the Appellants do not have standing to request the contract be enforced.

Mmawc, Llc V. Zion Wood Obi Wan Trust, 135 Nev. Adv. Op. 38 (Sep. 5, 2019), John Mccormick-Huhn

Nevada Supreme Court Summaries

The Court determined that the Federal Arbitration Act (“FAA”) preempted NRS § 597.995, which required any agreement containing an arbitration provision to also provide affirmative authorization to the arbitration by the agreement’s parties.

Pardee Homes Of Nevada V. Wolfram, 135 Nev. Adv. Op. 22 (July 3, 2019), Michael Desmond

Nevada Supreme Court Summaries

The Court determined that (1) any party seeking attorney fees as special damages must comply with NRCP 9(g), (2) the prevailing party in a two-party breach of contract suit is not entitled to attorney fees as special damages, and (3) any party seeking attorney fees pursuant to express contractual provisions is so entitled upon prevailing in the suit.

Shores V. Global Experience Specialists, Inc., 134 Nev. Adv. Op. 61 (Aug. 2, 2018), Natice Locke

Nevada Supreme Court Summaries

The Court considered whether the employer demonstrated a likelihood of success on the merits to uphold a noncompete agreement that prevented the employee from working anywhere in the United States, despite the employer not having established business contacts for such a wide area. Further, it considered whether the employer made the requisite prima facie showing that the noncompete agreement was reasonable in its terms and scope to warrant a likelihood of success on the merits. Because the employer was not able to make a prima facie case, the Court reversed the district court’s decision.

Cain V. Price C/W 69889/70864, 134 Nev. Adv. Op. 26 (April 12, 2018), Jeff Chronister

Nevada Supreme Court Summaries

The Nevada Supreme Court held that one party’s material breach of contract releases the non-breaching party’s contractual obligation to a third-party beneficiary.

U.S. Home Corp. V. The Michael Ballesteros Trust, 134 Nev. Adv. Op. 25 (April 1, 2018), Natice Locke

Nevada Supreme Court Summaries

The Court held that where an underlying transaction involves interstate commerce, the FAA (Federal Arbitration Act) preempts state unconscionability doctrine from disfavoring arbitration.

State Of Nevada Dep’T Of Trans. V. Eighth Judicial District Court (Nassiri), 133 Nev. Adv. Op. 70 (September 27, 2017), Natice Locke

Nevada Supreme Court Summaries

The Court considered a writ of mandamus challenging district court orders denying summary judgment on a landowner’s contract claims following a settlement in a condemnation action. The Court held the district court improperly ruled there were no undisputed facts when it denied the Nevada Department of Transportation’s motion for summary judgment on a landowner’s contract claims.

Hefetz V. Beavor, 133 Nev. Adv. Op. 46 (July 6, 2017), Julia Barker

Nevada Supreme Court Summaries

The Court determined that parties must timely assert the one-action rule as an affirmative defense in their response pleadings. If not, it is waived. As such, the District Court erred when it granted Respondent Beavor’s motion to dismiss pursuant to the one-action rule because he failed to raise that defense in a timely manner.

Washoe Cty. Sch. Dist. V. White, 133 Nev. Adv. Op. 43 (June 29, 2017), Margarita Elias

Nevada Supreme Court Summaries

Kara White (“White”) was terminated from her role as elementary school principal after the school district’s decision to terminate her was affirmed in an arbitration hearing. White filed a motion to vacate the award in district court. The district court granted White’s motion, holding that (1) the arbitrator exceeded his authority, (2) the arbitrator manifestly disregarded NRS 391.3116, and (3) the award was arbitrary and capricious. The school district appealed to the Supreme Court of Nevada, which reversed the district court’s ruling.

Solid V. Eighth Judicial Dist. Court, 133 Nev. Adv. Op. 17 (Apr. 27, 2017), Hunter Davidson

Nevada Supreme Court Summaries

The Court interpreted Nevada Supreme Court Rules (“SCR” or the “Rules”) on Electronic Coverage of Court Proceedings: (1) My Entertainment TV (MET) is a “news reporter” under SCR 229(1)(c) because it collects, edits, and publishes footage concerning local events for public dissemination; (2) Clark County court proceedings footage has the educational or informational purpose required by SCR 241; (3) camera presence in the court room alone does not overcome the presumption permitting electronic recording of court proceedings under SCR 230; and (4) contract provisions must be read together, and the result should comport with the SCR on electronic coverage of …

Notes From A Quiet Corner: User Concerns About Reinsurance Arbitration – And Attendant Lessons For Selection Of Dispute Resolution Forums And Methods, Jeffrey W. Stempel

Scholarly Works

Arbitration between insurers and reinsurers – those who insure insurance companies – should logically run as smoothly as any arbitration process. Like the traditional commercial arbitration that drove enactment of the Federal Arbitration Act, reinsurance arbitration involves experienced actors in a confined industry in which the parties should be constructively aware of the rules, norms, customs and practices of the industry. But in spite of this, reinsurance arbitration experiences consistent problems of which the participants complain. This article reviews the complaints and exams possible solutions – including the possibility of arbitrating less and litigating more. Although these possible solutions would …

Redefining Roles And Duties Of The Transactional Lawyer: A Narrative Approach, Lori D. Johnson

Scholarly Works

Today’s transactional lawyers perform myriad tasks for their clients, including structuring, drafting, conceptualizing, negotiating, and executing the complex, risky, and often cutting-edge transactions their clients bring to the table. On the other side of that table, often sits another team of sophisticated transactional lawyers. These opposing counsel are armed for battle over every nuance, every word, every representation, every deliverable, and every obligation their client is poised to undertake or agree to. Therefore, modern transactional lawyers must behave as advocates and explore new modes of persuasion. As a response, scholars have begun to propose that transactional lawyers employ methods of …

Cashman Equipment Co. V. West Edna Assocs., 132 Nev. Adv. Op. 69 (Sep. 29, 2016), Andrew Hart

Nevada Supreme Court Summaries

The Court determined that (1) NRS 108.2457(5)(e) precludes enforcement of an unconditional release from a bottom-tiered contractor to a higher-tiered contractor, when the higher-tiered contractor properly paid the middle-tiered contractor, but the middle-tiered contractor failed to pay the bottom-tiered contractor; and (2) that equitable fault analysis may not be used to reduce an award in a mechanic’s lien case.

Principal Investments V. Harrison, 132 Nev. Adv. Op. 2 (Jan. 14, 2016), Katherine Maher

Nevada Supreme Court Summaries

The Court held unless the arbitration agreement commits the question to the arbitrator with “clear and unmistakable” language, a litigation-conduct waiver is presumptively for the court to decide because it is a waiver based on active litigation in court. Thus, the district court judge in this case did not err in addressing whether the moving party waived its right to arbitrate, instead of referring the question to the arbitrator.

Opinion & Dissent: Magic Words, Lori D. Johnson

Scholarly Works

No abstract provided.

The Ethics Of Non-Traditional Contract Drafting, Lori D. Johnson

Scholarly Works

A new generation of contract drafters faces increasing commentary advising them to change traditional contract terms into plain language constructions. Yet, traditional, tested terms have consistent meanings, and when these meanings benefit client objectives, advocates should consider retaining them. This article posits that failing to do so can impact a lawyer’s ethical obligations. Specifically, an attorney’s duties of competence, allocation of authority, diligence, and communication under the Model Rules of Professional Conduct require careful thought about modernizing tested contract terms. These duties require the ethical drafter to research whether the use of a traditional, tested term advances a client goal …

Hurrah For The Consumer Financial Protection Bureau: Consumer Arbitration As A Poster Child For Regulation, Jean R. Sternlight

Scholarly Works

Drawing on economic, psychological and philosophical considerations, this Essay considers whether consumers should be "free" to "agree" to contractually trade their opportunity to litigate in a class action for the opportunity to bring an arbitration claim against a company. The Essay suggests that by looking at the CFPB's regulation through these three lenses, one sees that the regulation is desirable—even a poster child—for the potential value of regulation when market forces are not sufficient to protect individual or public interests.

Contracting Trademark Fame?, Leah Chan Grinvald

Scholarly Works

Contracts abound in today's highly digitized society. Did you snap a pic and upload it to Instagram? You entered into a contract. Did you check your friends' statuses on Facebook? Yep, you also entered into a contract. Did you know you entered into a contract or even if you were aware of this fact, did you know the terms to which you agreed? Probably not. But despite this, we are all obligated by these contracts, so long as we are somehow made aware that we could read the terms at some point if we had the inclination to do so. …

Anderson V. Sanchez 132 Nev. Adv. Op. 34 (Apr. 28 2016), Cassandra Ramey

Nevada Supreme Court Summaries

The Supreme Court of Nevada held that the doctrine of mutual mistake is not grounds for rescission of a contract when the party bears the risk of mistake. The party bears the risk of mistake if the party is aware at the time of the formation of the contract that they only have limited knowledge of the facts to which the mistake relates, but treats that knowledge as sufficient, the court will allocate the risk of mistake to that party.

Golden Road Motor Inn, V. Islam, Et. Al., 132 Nev. Adv. Op. 49 (Jul. 17, 2016), Heather Caliguire

Nevada Supreme Court Summaries

The Nevada Supreme Court held that non-compete agreements cannot extend further than what is reasonable and necessary to protect the interests of the employer and cannot create an undue hardship on the employee. It also held that courts may not “blue line” (“blue pencil”) contracts, that is change or delete terms to make the Contract legal. The Court further held that altering player contact information, so long as the information can be restored with minimal disruption to the gaming company does not rise to the level of conversion. Finally, the Court held that a gaming company is not liable for …

In Re: Manhattan West Mechanic’S Lien Litigation, 131 Nev. Adv. Op. 70 (Sept. 24, 2015), Kristian Kaskla

Nevada Supreme Court Summaries

The Court determined that (1) a general subordination agreement effects a partial subordination; and (2) NRS 108.225 does not preclude parties from contracting for a partial subordination.

Mika V. Eighth Jud. Dist. Ct., 131 Nev. Adv. Op. 71 (Sep. 24, 2015), Kory Koerperich

Nevada Supreme Court Summaries

The court denied extraordinary writ relief from the district court’s decision to compel arbitration between Petitioners and their employer based on a long-form arbitration agreement signed only by the Petitioners, and federal law favoring arbitration agreements.

Am. First Fed. Credit Union V. Soro, 131 Nev. Adv. Op. 73 (Sep. 24, 2014), Katherine Maher

Nevada Supreme Court Summaries

The Court determined that a contract clause in which the parties “submit themselves to the jurisdiction of” another state, without more exclusive language, is permissive and does not result in a mandatory forum selection clause.