Contracts Commons^™

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.

The Three Phases Of The Supreme Court’S Arbitration Jurisprudence: Empowering The Already-Empowered, Martin H. Malin

Nevada Law Journal

Arbitration agreements coupled with class-action waivers and other onerous provisions have become common in employment, consumer, and other transactions. The Supreme Court’s decisions enforcing such agreements have encouraged their use. Scholars have largely critiqued the Court’s decisions.

This article finds that the Court’s arbitration jurisprudence has not been so monolithic. Rather it has evolved through three phases. In Phase I, the Court overruled older case law and held that pre-dispute agreements to arbitrate statutory claims were enforceable pursuant to the Federal Arbitration Act (“FAA”). The Court’s rationale was that as long as the claimant could effectively vindicate the claims in …

The Right To Reimbursement: Nevada Courts Should Follow The Trend And Forbid Insurers From Seeking Recoupment Of Defense Costs, Kristen Matteoni

Nevada Law Journal

No abstract provided.

Contracting Out Of Fiduciary Duties In Llcs: Delaware Will Lead, But Will Anyone Follow?, H. Justin Pace

Nevada Law Journal

No abstract provided.

Rethinking Promissory Estoppel, Eric Alden

Nevada Law Journal

Samuel Williston, the official Reporter for the ALI’s first Restatement of the Law of Contracts in 1932, claimed that promises had been enforced without consideration in sufficiently many cases across different factual situations that the only way to embrace them all was to create a provision, set forth in Section 90 and generally referred to as “promissory estoppel,” that purports to suspend wholesale the normal rules governing contract formation. This Article challenges that assertion as a factual matter, and challenges the claim that only a provision as broad as Section 90 could accommodate certain limited exceptions to the consideration requirement …

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.

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 …

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. …

Opinion & Dissent: Magic Words, Lori D. Johnson

Scholarly Works

No abstract provided.

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.

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.

Tallman V. Eight Judicial District Court, 131 Nev. Adv. Op. 60673 (Sep. 24, 2015), Marta Kurshumova

Nevada Supreme Court Summaries

The Court held that an employment arbitration agreement, which contains a clause waiving the right to initiate or participate in class actions, constitutes a valid contract, even though it is not signed by the employer. The Court further determined that the Federal Arbitration Act applies to all transactions involving commerce and does not conflict with the National Labor Relations Act, which permits and requires arbitration. Finally, the Court found that a party does not automatically waive its contractual rights to arbitration by removing an action to federal court.

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.

Land Baron Invs. V. Bonnie Springs Family Lp, 131 Nev. Adv. Op. 69 (Sept. 17, 2015), Rob Schmidt

Nevada Supreme Court Summaries

This case is an appeal arising from a failed land sale contract. The Court considered three issues of first impression, holding that (1) when a party bears the risk, mutual mistake is not a basis for rescission; (2) an abuse of process claim may not be supported by a complaint to an administrative agency; (3) a nuisance claim seeking only emotional distress damages must be supported by proof of physical harm. Ultimately, The Court affirmed in part and reversed in part.

Summary Of Excellence Cmty. Mgmt. V. Gilmore, 131 Nev. Adv. Op. 38 (June 25, 2015), Ashleigh Wise

Nevada Supreme Court Summaries

The Court held the sale of a 100 percent membership interest in a limited liability company does not affect the enforcement of an employee’s employment contract containing a restrictive covenant because the sale does not create a new entity. An employer limited liability company may enforce a restrictive covenant in an employment contract without its employee’s consent of assignment.

Enhancing The Socially Instrumental Role Of Insurance: The Opportunity And Challenge Presented By The Ali Restatement Position On Breach Of The Duty To Defend, Jeffrey W. Stempel

Scholarly Works

The American Law Institute (ALI), in its current draft of the Restatement of the Law of Liability Insurance , has adopted the position that a liability insurer in breach of its duty to defend, but not acting in bad faith, forfeits the right to dispute coverage of the resulting judgment or reasonable, noncollusive settlement in a lawsuit. The ALI view is the minority rule in the courts in that most make bad faith a prerequisite for loss of a coverage defense but presumably will spur re-examination of the issue in many states. Unsurprisingly, insurers have opposed the ALI position with …

Say The Magic Word: A Rhetorical Analysis Of Contract Drafting Choices, Lori D. Johnson

Scholarly Works

Drafters of complex contracts often face a thorny dilemma – determining whether to retain “magic words” included in form documents, especially when considering the advice of current contract style scholars advocating for the removal of all traditional contract prose. But the drafter need not remove all terms that serve as elegant shorthand for more convoluted legal concepts, particularly where the inclusion of the term advances client interests. The application of rhetorical criticism – the analysis of methods of communicating ideas – to drafters’ use of the term “time is of the essence” sheds light on the dominant motivations of drafters …

Summary Of First Financial Bank, N.A. V. Lane, 130 Nev. Adv. Op. 96, Patrick Phippen

Nevada Supreme Court Summaries

The Court determined that (1) the limitation in the second sentence of NRS 40.451 simply means a lender cannot recover in deficiency judgment actions for future advances secured but not paid at the time of default and (2) NRS 40.451 by itself does not contemplate successors in interest.

Summary Of Mason Mcduffie Real Estate V. Villa Fiore Development, 103 Nev. Adv. Op. 83, Jessica Gandy

Nevada Supreme Court Summaries

The Court determined that a commercial tenant may not be constructively evicted without “first providing the landlord notice of and a reasonable opportunity to cure the defect”, even when the defect persist after repeated failed attempts to cure by the landlord.

Prosser's Bait-And-Switch: How Food Safety Was Sacrificed In The Battle For Tort's Empire, Denis W. Stearns

Nevada Law Journal

No abstract provided.

Summary Of Wood V. Germann, 130 Nev. Adv. Op. 58, Ryan Becklean

Nevada Supreme Court Summaries

The Court determined one issue: (1) the legal effect of a loan assignment from a homeowner’s original lender to a subsequent purchaser when that assignment violates the terms of the original lender and subsequent purchaser’s Pooling and Servicing Agreement (PSA). More specifically, the court decided whether a loan assignment that is executed after the closing date renders the assignment void and ineffective to transfer ownership of the homeowner’s loan.

Summary Of Century Sur. Co. V. Casino W., Inc., 130 Adv. Nev. Op. 42, Michael Paretti

Nevada Supreme Court Summaries

The court determined whether two distinct provisions of an insurance policy regarding air pollution were subject to multiple reasonable interpretations.

Summary Of Lavi V. Eighth Judicial District Court, 130 Nev. Adv. Op. 38, Danielle Barraza

Nevada Supreme Court Summaries

The Court determined whether waiver of the “one-action rule” of NRS 40.430 terminates the procedural requirements for bringing a deficiency judgment action within six months of foreclosure under NRS 40.455.

Summary Of Schleining V. Cap One, Inc., 130 Nev. Adv. Op. 36, Laura Guidry

Nevada Supreme Court Summaries

The Court determined two issues: 1) whether NRS 40.453 invalidates a guarantor’s contractual waiver of the statutory right to be mailed a notice of default and 2) whether NRS 107.095 requires strict or substantial compliance by lenders giving notice of default, and if substantial compliance is sufficient, whether there was substantial compliance in this case.

Summary Of Progressive Gulf Ins. Co. V. Faehnrich, 130 Nev. Adv. Op. 19, Jeffrey Pike

Nevada Supreme Court Summaries

The Court determined whether Nevada public policy precludes giving effect to a choice-of-law provision in an insurance contract made by parties residing outside Nevada that would deny Nevada residents injured in Nevada recovery under NRS 485.3091.

Summary Of Newmar Corp. V. Mccrary, 129 Nev. Adv. Op. 67, Shaina Plaksin

Nevada Supreme Court Summaries

The Court determined whether a purchaser of a motor home may revoke acceptance and recover the purchase price from the motor home’s manufacturer under the Uniform Commercial Code (UCC).

Rediscovering The Sawyer Solution: Bundling Risk For Protection And Profit, Jeffrey W. Stempel

Scholarly Works

No abstract provided.