American Home Assurance Co. v. Eighth Judicial District Court of the State of Nevada ex rel. County of Clark

147 P.3d 1120, 122 Nev. 1229, 122 Nev. Adv. Rep. 104, 2006 Nev. LEXIS 136
CourtNevada Supreme Court
DecidedDecember 21, 2006
DocketNo. 47381
StatusPublished
Cited by15 cases

This text of 147 P.3d 1120 (American Home Assurance Co. v. Eighth Judicial District Court of the State of Nevada ex rel. County of Clark) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Home Assurance Co. v. Eighth Judicial District Court of the State of Nevada ex rel. County of Clark, 147 P.3d 1120, 122 Nev. 1229, 122 Nev. Adv. Rep. 104, 2006 Nev. LEXIS 136 (Neb. 2006).

Opinion

OPINION

By the Court,

Hardesty, J.:

In Nevada, when a third party is at fault for an industrial accident, the workers’ compensation insurer that paid benefits to the injured worker has a lien upon any proceeds that the worker recovers from the tortfeasor, so that the insurer’s payments are reimbursed, ultimately, by the tortfeasor. During the proceedings underlying this writ petition, to protect its lien on any proceeds recovered by the injured worker to whom it provided benefits, a workers’ compensation insurer asked the district court to allow it to intervene in the injured worker’s tort litigation. Although the insurer contended that it had an absolute right to intervene in the litigation under our 1995 decision in State Industrial Insurance System v. District Court,2 the district court denied the insurer’s application. Accordingly, the insurer has brought this original petition for a writ of mandamus, requesting us to direct the district court to allow it to intervene in the injured worker’s case.

Because our 1995 decision is unsupportable under the law, however, we overrule it. We conclude that a workers’ compensation insurer may intervene in an injured worker’s litigation to protect its right to reimbursement only if it meets certain requirements, which include showing that the injured worker cannot adequately represent the insurer’s interest in the subject matter of the litigation. [1233]*1233Because the insurer here failed to show that its interest was inadequately represented by the injured worker, we deny the insurer’s request for extraordinary relief.

FACTS

Real party in interest Titanium Metal Corporation (Timet) hired real party in interest Guardsmark, Inc., to provide onsite security services. Guardsmark employed real party in interest David Carlton Madison, Jr., as a security guard. While on duty, Madison fell into an abandoned furnace pit on Timet’s property. As a result of the fall, Madison suffered severe, debilitating injuries, for which he received workers’ compensation benefits from Guardsmark’s insurer.

Madison then filed a personal injury action against Timet in December 2003, alleging several negligence theories as bases to recover damages. Timet filed a third-party complaint against Guardsmark for express and implied indemnity, and contribution.

In April 2006, over three years after the accident and approximately two-and-one-half years after Madison filed suit, Guards-mark’s workers’ compensation insurer, petitioner American Home Assurance Company (AHAC), moved to intervene in Madison’s personal injury action for purposes of recovering the workers’ compensation benefits that it had paid (and will pay) to Madison. Attached to its motion was a “complaint-in-intervention for reimbursement of workers’ compensation benefits,” alleging the same negligence claims against Timet as were alleged in Madison’s complaint and requesting both damages and a lien against any judgment in favor of Madison, in the amount of the benefits that it paid to Madison. At the time AHAC sought to intervene, a June 2, 2006 discovery cut-off date was in place, and trial was scheduled to begin on September 5, 2006.

Both Madison and Timet opposed the motion to intervene, arguing that AHAC’s complaint in intervention constituted an attempt to assert an independent cause of action against Timet and was thus subject to dismissal under the statute of limitations.3 Further, they argued, given that the intervention complaint did not even contain the word “subrogation,” it could not be construed as an effort to enforce a subrogation lien. All parties acknowledged that AHAC retained subrogation lien rights over any recovery Madison obtained and that AHAC could enforce those rights after any settlement was reached or any judgment was entered. Madison pointed out, however, that if AHAC did not intervene in the action, it would be responsible for contributing its share of the litigation expenses when collecting on its lien, as set forth in Breen v. Caesars Palace 4 Madison asserted that AHAC should not be permitted to [1234]*1234intervene at such a late date, as it attempted to do so merely to avoid paying its proportionate share of the litigation costs.

The district court denied AHAC’s motion to intervene, determining that AHAC was attempting to assert an independent cause of action against Timet, which was time-barred. The court further found that AHAC’s lien rights were adequately protected, as the parties were on notice that the lien would apply, subject to an offset for AHAC’s portion of the litigation expenses, as required under Breen.

AHAC consequently filed the instant writ petition, challenging the district court’s order denying it leave to intervene. As directed, Madison timely filed an answer, arguing that AHAC’s intervention was not appropriate under these circumstances and, therefore, writ relief was not warranted. We stayed the underlying action pending our resolution of AHAC’s petition for extraordinary writ relief.

DISCUSSION

A writ of mandamus is available to compel the performance of an act that the law requires as a duty resulting from an office, trust or station,5 or to remedy a manifest abuse of discretion.6 Mandamus is available only when petitioner has no plain, speedy, and adequate legal remedy,7 and whether we will consider a petition for the extraordinary remedy of mandamus is entirely within our discretion.8 The petitioner bears the burden of demonstrating that mandamus relief is warranted.9

We have determined that our discretionary consideration of this petition is appropriate because AHAC has no other adequate means by which to challenge the district court’s refusal to allow it to intervene in the underlying suit.10 After considering the petition and answer thereto, however, we conclude that extraordinary writ relief is not warranted. Specifically, even though AHAC has an interest in Madison’s litigation of his personal injury claims, the district court has discretion in deciding whether AHAC has shown that intervention is appropriate so that it may promote or protect that interest. We conclude that the district court did not manifestly abuse its discretion when it denied AHAC leave to intervene, given Madison’s ability to adequately represent AHAC’s interest.

[1235]*1235 Intervention is within the district court’s discretion

AHAC argues that, in accordance with this court’s decision in State Industrial Insurance System v. District Court (SIIS),11 it may automatically intervene in Madison’s suit against Timet as a matter of right. Accordingly, AHAC argues, the district court was obligated to allow it to intervene. Because we determine that our conclusion in SIIS, that an insurer has an absolute right to intervene in an injured worker’s lawsuit, is not supportable under Nevada law, and because the district court did not abuse its discretion in disallowing AHAC’s intervention, we disagree.

Nevada law

NRS 12.130 allows, before the trial commences, “any person . . .

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Cite This Page — Counsel Stack

Bluebook (online)
147 P.3d 1120, 122 Nev. 1229, 122 Nev. Adv. Rep. 104, 2006 Nev. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-home-assurance-co-v-eighth-judicial-district-court-of-the-state-nev-2006.