GNLV Corp. v. Service Control Corp.

900 P.2d 323, 111 Nev. 866
CourtNevada Supreme Court
DecidedJuly 27, 1995
DocketNo. 24766
StatusPublished
Cited by22 cases

This text of 900 P.2d 323 (GNLV Corp. v. Service Control Corp.) 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
GNLV Corp. v. Service Control Corp., 900 P.2d 323, 111 Nev. 866 (Neb. 1995).

Opinion

[867]*867OPINION

Per Curiam:

FACTS

Appellant Karen Snellback slipped and fell in the bathroom of her room at the Golden Nugget Hotel & Casino (“the Golden Nugget”) in Las Vegas. Snellback claimed that the bath mat slipped out from underneath her as she stepped out of the bathtub. As a result of the fall, Snellback suffered a fracture in her left shoulder, pain in her right hand and wrist and aggravation of her arthritis, and loss of use of her left arm. Directly after the fall, Snellback examined the bath mat and discovered that the rubber backing of the bath mat was almost entirely worn off.

The Golden Nugget took possession of the bath mat and allegedly placed it in the locked evidence room in their risk management office. Two Golden Nugget employees inspected the mat at the time of the accident, and approximately six months later, in November, 1990, prepared written statements describing its condition. One employee stated that “over ninety percent of the anti-[868]*868slip backing was worn away” and that “[t]here were just a few bits and pieces of the backing left on the mat.” The other employee stated that “virtually all of the rubber backing had been melted off. The small patches of rubber that remained had also been melted. As the result the bath mat wasn’t slip-resistant.” Both employees later prepared sworn affidavits confirming what they had reported in their previous written statements. One of the Golden Nugget’s representatives informed Snellback that the rubber backing of the bath mat had apparently been stripped away by the cleaning process utilized by Service Control Corporation (“Western Linen”). At some point prior to the November 1990 written statements of the Golden Nugget employees, the bath mat was discovered missing.

On February 4, 1991, the Golden Nugget supplied its employees’ statements to Karen Snellback. Snellback states that the loss of the bath mat was the result of the Golden Nugget’s negligence. Western Linen, under contract with the Golden Nugget since 1988 to provide linen, including bath mats, in serviceable and sanitary condition for use in the hotel’s rooms, concedes that “the Golden Nugget did not ostensibly engage in the willful destruction of the evidence.” Included in the Golden Nugget’s contract with Western Linen was a provision whereby Western Linen would hold the Golden Nugget harmless from damages resulting from claims or causes of action for personal injuries or property damage arising out of the performance of the contract due to Western Linen’s negligence or that of its employees.1

On April 23, 1992, Karen Snellback and her husband Chet filed a complaint against Western Linen and the Golden Nugget, alleging, inter alia, that Western Linen was negligent for supplying a defective bath mat to the Golden Nugget. On August 3, 1992, Western Linen answered the Snellbacks’ complaint and filed a cross-claim against the Golden Nugget for indemnification and contribution. The cross-claim was subsequently dismissed with prejudice. On September 23, 1992, the Golden Nugget answered both the Snellbacks’ complaint and Western Linen’s cross-claim, and filed a cross-claim against Western Linen for breach of a contractual duty to provide proper bath mats, and to enforce the contractual right of indemnity.

On March 8, 1993, Western Linen moved for summary judgment against the Golden Nugget and the Snellbacks, arguing that it was entitled to summary judgment due to the Golden Nugget’s [869]*869failure to preserve critical evidence, namely, the bath mat. On April 15, 1993, Western Linen filed a motion to dismiss itself as a party to the lawsuit. The district court, after concluding that an evidentiary hearing was unwarranted, dismissed Western Linen as a party to the action pursuant to Nevada Rule of Civil Procedure 37(b),2 concluding that Western Linen was “irreparably prejudiced” by the loss of the bath mat, and awarded $3,000 in attorney fees to Western Linen against the Golden Nugget, “the amount directly attributable to the matter involving the loss of the mat.” Both the Snellbacks and the Golden Nugget appeal.

DISCUSSION

On appeal, the Snellbacks and the Golden Nugget argue that the district court erred in dismissing Western Linen as a party. We agree that the sanction of dismissal was too harsh in this case.

Generally, sanctions may only be imposed where there has been willful noncompliance with a court order or where the adversary process has been halted by the actions of the unresponsive party. Fire Ins. Exchange v. Zenith Radio Corp., 103 Nev. 648, 651, 747 P.2d 911, 913 (1987). “[Ejven where an action has not been commenced and there is only a potential for litigation, the litigant is under a duty to preserve evidence which it knows or reasonably should know is relevant to the action.” Id. at 651, 747 P.2d at 914.

Although discovery sanctions are within the power of the district court and this court will not reverse the particular sanctions imposed absent a showing of abuse of discretion, if the sanction imposed is that of dismissal with prejudice, a somewhat heightened standard of review applies. Nevada Power v. Fluor [870]*870Illinois, 108 Nev. 638, 644, 837 P.2d 1354, 1358-59 (1992); Young v. Johnny Ribeiro Building, 106 Nev. 88, 92, 787 P.2d 777, 779 (1990). Fundamental notions of fairness and due process require that discovery sanctions be just and that sanctions relate to the specific conduct at issue. Young, 106 Nev. at 92, 787 P.2d at 779-80. In addition, while dismissal need not be preceded by other less severe sanctions, it should only be imposed after thoughtful consideration of all the factors involved in a particular case. Id. at 92, 787 P.2d at 780. The dismissal of a case, based upon a discovery abuse such as the destruction or loss of evidence, “should be used only in extreme situations; if less drastic sanctions are available, they should be utilized.” Nevada Power, 108 Nev. at 645, 837 P.2d at 1359. We note that NRCP 37(b) offers a panoply of sanctions.3

In Young, we set out eight factors that a court may consider before ordering dismissal with prejudice as a discovery sanction: (1) the degree of willfulness of the offending party; (2) the extent to which the non-offending party would be prejudiced by a lesser sanction; (3) the severity of dismissal relative to the severity of the abusive conduct; (4) whether evidence has been irreparably lost; (5) the feasibility and fairness of alternative and less severe sanctions, such as an order deeming facts relating to improperly lost or destroyed evidence to be admitted by the offending party; (6) the policy favoring adjudication on the merits; (7) whether sanctions unfairly operate to penalize a party for the misconduct of his or her attorney; and (8) the need to deter both the parties and future litigants from similar abuses. Young, 106 Nev. at 93, 787 P.2d at 780.

[871]*871Applying the Young

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Bluebook (online)
900 P.2d 323, 111 Nev. 866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gnlv-corp-v-service-control-corp-nev-1995.