Eversole v. Sunrise Villas VIII Homeowners Ass'n

925 P.2d 505, 112 Nev. 1255, 1996 Nev. LEXIS 143
CourtNevada Supreme Court
DecidedOctober 22, 1996
DocketNo. 26472
StatusPublished
Cited by5 cases

This text of 925 P.2d 505 (Eversole v. Sunrise Villas VIII Homeowners Ass'n) 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
Eversole v. Sunrise Villas VIII Homeowners Ass'n, 925 P.2d 505, 112 Nev. 1255, 1996 Nev. LEXIS 143 (Neb. 1996).

Opinion

[1256]*1256OPINION

Per Curiam:

Pursuant to the bylaws of respondent Sunrise Villas VIII Homeowners Association (the Association), the Association’s board of directors had a duty to hold an annual meeting of the Association’s membership for the purpose of electing the Association’s board of directors on December 7, 1993. However, this meeting was not held on the scheduled date. Consequently, appellant William Eversole and other members of the Association attempted to call a special meeting to elect a new board of directors. Eversole and the other members secured proxies, which contained requests to hold a special meeting to elect new directors, from forty-one percent of the Association’s membership. A written request to hold a special meeting was then delivered to the Association’s president and secretary.

Article I, Sections 8 and 9 of the Association’s bylaws provide for the calling and notice of special meetings as follows:

Section 8. SPECIAL MEETINGS, HOW CALLED
Special meetings of the membership for any purpose or purposes may be called by the President or Secretary, upon a request in writing therefor, stating the purpose or purposes thereof, delivered to the President or Secretary, signed by the President or any two directors, or by members representing at least forty percent (40%) of the voting power in the corporation, or by resolution of the directors.

(Emphasis added.)

Section 9. NOTICE OF MEMBERSHIP MEETINGS
Written or printed notice, stating the place and time of the meeting, and the general nature of the business to be considered, shall be given by the Secretary to each member entitled to vote thereat at his last known post office address, not less than ten (10) nor more than sixty (60) days before the meeting.

(Emphasis added.) In addition, Article III, Section 4 of the bylaws provides that the secretary “shall attend to the giving and serving of all notices to the members and directors and other notices required by law.”

[1257]*1257The Association’s leadership did not honor the request to call a special meeting. In response, Eversole and the other members took it upon themselves to give notice to the membership that a special meeting would be held on February 17, 1994. Eversole reserved the hall where the meeting was to be held with his personal check. The meeting was held, and an election was conducted wherein Eversole and the other members were installed as the new board of directors.

The Association filed a complaint in district court against Eversole and these other members (the defendants) alleging that they had attempted to oust the Association’s board of directors and had conducted a spurious election in violation of the Association’s bylaws. The Association sought a temporary restraining order, as well as preliminary and permanent injunctive relief, to enjoin the defendants from acting as directors. The complaint also prayed for a declaration confirming the composition of the board of directors. Finally, the Association sought damages, including attorney fees and costs.

Before answers were filed, an in-chambers conference was held. In that conference, counsel for the defendants and the Association agreed that a new election would be held by a master and that the status quo would be maintained in the interim. The lower court entered an order reflecting this agreement.

Pursuant to the court’s order, an election was held on March 9, 1994, and the directors whom the defendants had opposed were retained in office. The district court later confirmed the results of the election.

A status hearing was subsequently held, and the district judge clearly indicated that he felt the case was moot. The judge stated that Eversole and the other defendants should not file answers or take any further action and he would not assess any fees against them. When the attorney for the Association asked about attorney fees, the district judge indicated he might assess fees against the Association but not against the individual defendants. In talking to a defendant other than Eversole, the judge explained:

In other words, if you don’t answer this complaint nothing is going to happen to you. You’re not going to have any money taken out of your pocket. Is that correct, Miss Higbee [attorney for Association]?

And later he told the Association’s attorney:

And if you want extra money from Mr. Eversole or this man you better notify them. I’m not prone to give it to them. I don’t want to take money out of your pocket. As long as you let it lie. But if you keep on filing motions or whatever it is and if they win and prevail you’re going to have to pay. All [1258]*1258right? But as of right now I very seriously doubt that I’m going to award them attorney fees that you have to pay or you have to pay personally. I very seriously doubt I’m going to do that right now. All right? Even if they file a motion. I’m going to have to give them some money to be paid out of the Sunrise Villas Association fund, but we’ll take that up at a later time.

About a month thereafter, the Association served the defendants with a notice of intent to default. Since Eversole’s attorney had withdrawn, he retained another attorney who advised him to file an answer, and that was done. A default was entered against the other defendants.

The Association then filed a motion, with points and authorities, for entry of final judgment, including attorney fees and costs. Eversole filed opposition and reply points and authorities thereafter and the Association filed its reply. A hearing on the motion was held.

The district court subsequently entered its findings of fact, conclusions of law and judgment. The court concluded that the election conducted by the defendants violated the Association’s bylaws and that the Association was entitled to attorney fees under NRS 116.4117. The court ordered Eversole to pay the Association $5,563.20 in attorney fees, one-half the attorney fees alleged to have been incurred by the Association in prosecuting and defending the action. The court further adjudged that the Association’s claims for injunctive and declaratory relief had been rendered moot by the new election held by the master.

Eversole later filed a motion to amend the court’s findings, conclusions and judgment. After a hearing, the court denied the motion.

Eversole now appeals the award of attorney fees claiming that the parties’ stipulation incorporated in the lower court’s order maintaining the status quo operated to preclude the district court from determining the impropriety of the special election, the lower court erred in awarding the Association attorney fees as there were genuine issues of material fact which required a trial, the lower court was estopped from awarding attorney fees when it induced Eversole and the other defendants to sit on their rights, and the attorney fees that were assessed were fatally flawed and should have been adjusted by the lower court.

The Association asks this court to conclude that Eversole’s appeal is frivolous and seeks double costs and attorney fees incurred.

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Bluebook (online)
925 P.2d 505, 112 Nev. 1255, 1996 Nev. LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eversole-v-sunrise-villas-viii-homeowners-assn-nev-1996.