N. Nev. Homes, LLC v. GL Constr., Inc.

422 P.3d 1234
CourtNevada Supreme Court
DecidedAugust 2, 2018
DocketNo. 71899
StatusPublished
Cited by6 cases

This text of 422 P.3d 1234 (N. Nev. Homes, LLC v. GL Constr., Inc.) 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
N. Nev. Homes, LLC v. GL Constr., Inc., 422 P.3d 1234 (Neb. 2018).

Opinion

By the Court, CHERRY, J.:

In this appeal, we consider a district court's award of attorney fees and costs to defendant GL Construction, Inc. (GL) on its counterclaim against plaintiff Northern Nevada Homes, LLC (NNH). The question presented is whether the district court properly determined GL to be the "prevailing party" following bifurcated trials, in which the parties settled as to damages on NNH's claims in an amount that exceeds GL's damages judgment on its counterclaim. We conclude that the district court did not abuse its discretion with regard to the award of attorney fees and costs for two reasons. First, we note that no statute or court rule requires the trial court to offset a damages judgment on one party's counterclaim by the amount recovered by another party in settling its claim to determine which side is the prevailing party. Second, we conclude that the most *1236reasonable interpretation of NRS 18.010(2)(a) and 18.020(3) precludes the use of settlement recovery for this purpose.

FACTS AND PROCEDURAL HISTORY

NNH and Cerberus Holdings, LLC, filed a complaint against Gordon Lemich and his company, GL.2 NNH alleged that GL and Lemich trespassed on its property by dumping dirt and other waste. GL later filed a counterclaim against NNH for breach of contract regarding unpaid invoices for construction work it had performed on separate projects. The district court bifurcated the case into a jury trial concerning NNH's claims against GL and Lemich, and a bench trial concerning GL's counterclaim against NNH. On day three of the jury trial, the district court indicated it was inclined to enter judgment as a matter of law in favor of NNH as to liability on its tort-based claims, and shortly thereafter, the parties settled NNH's claims for $362,500. After the bench trial on GL's counterclaim, the district court found in favor of GL, awarding $7,811 in damages.

GL then moved for $67,595 in attorney fees and $2,497.33 in costs. NNH opposed, arguing in part that GL was not the prevailing party under NRS 18.010 and 18.020 because NNH obtained a net recovery from the settlement. The district court awarded GL $10,000 in attorney fees and $390 in costs, finding that (1) GL was a prevailing party within the meaning of NRS 18.010 and 18.020 with respect to its counterclaim; (2) the settlement amount was not relevant to the prevailing party determination because the facts underlying the counterclaim were largely unrelated to NNH's claim; and (3) $10,000 was a reasonable amount for attorney fees3 and $390 in costs was appropriate as NNH did not dispute them.

DISCUSSION

Standard of review

"An award of attorney fees is reviewed for an abuse of discretion." MB Am., Inc. v. Alaska Pac. Leasing, 132 Nev. 78, 88, 367 P.3d 1286, 1292 (2016). A decision made "in clear disregard of the guiding legal principles can be an abuse of discretion." Id. (internal quotation marks omitted).

Questions of law and statutory interpretation are reviewed de novo. Albios v. Horizon Cmtys., Inc., 122 Nev. 409, 417, 132 P.3d 1022, 1028 (2006) ; Smith v. Crown Fin. Servs. of Am., 111 Nev. 277, 284, 890 P.2d 769, 773 (1995). As to statutory interpretation, if the plain language of a statute is ambiguous, "it is the duty of this court to select the construction that will best give effect to the intent of the legislature." Smith, 111 Nev. at 284, 890 P.2d at 773-74.

Attorney fees and costs under NRS 18.010 and NRS 18.020

NNH argues that the district court abused its discretion by determining that GL was the prevailing party under NRS 18.010(2)(a) and 18.020(3), because NNH received the net monetary recovery in this case when the parties' recoveries were offset under Parodi v. Budetti, 115 Nev. 236, 241, 984 P.2d 172, 175 (1999), and other courts' precedents.

NRS 18.010(2)(a) is the result of "[t]he legislat[ive] inten[t] ... to afford litigants in small civil suits the opportunity to be made whole." Smith, 111 Nev. at 286, 890 P.2d at 774.4 Under NRS 18.010(2)(a), a "court may make an allowance of attorney's fees to a prevailing party ... [w]hen the prevailing party has not recovered more than $20,000." (Emphasis added.) Similarly, under NRS 18.020(3), "[c]osts must be allowed ... to the prevailing party against any adverse party against whom judgment is rendered *1237... [i]n an action for the recovery of money or damages, where the plaintiff seeks to recover more than $2,500." (Emphasis added.) "A party to an action cannot be considered a prevailing party within the contemplation of NRS 18.010, where the action has not proceeded to judgment." Works v. Kuhn,

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Cite This Page — Counsel Stack

Bluebook (online)
422 P.3d 1234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/n-nev-homes-llc-v-gl-constr-inc-nev-2018.