NALDER VS. DIST. CT. (UNITED AUTO. INS. CO.) C/W 78243

2020 NV 24
CourtNevada Supreme Court
DecidedApril 30, 2020
Docket78085
StatusPublished

This text of 2020 NV 24 (NALDER VS. DIST. CT. (UNITED AUTO. INS. CO.) C/W 78243) 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
NALDER VS. DIST. CT. (UNITED AUTO. INS. CO.) C/W 78243, 2020 NV 24 (Neb. 2020).

Opinion

136 Nev., Advance Opinion 21 IN THE SUPREME COURT OF THE STATE OF NEVADA

CHEYENNE NALDER, AN No. 78085 INDIVIDUAL; AND GARY LEWIS, PETITIONERS AND REAL PARTIES IN INTEREST, Petitioners, vs. FILED THE EIGHTH JUDICIAL DISTRICT APR 3 0 2020 COURT OF THE STATE OF NEVADA, EUZABEM A. BROWN BU E COURT' IN AND FOR THE COUNTY OF LIA-1 CLARK; THE HONORABLE DAVID M. cii matt JONES, DISTRICT JUDGE; AND THE HONORABLE ERIC JOHNSON, DISTRICT JUDGE, Respondents, and UNITED AUTOMOBILE INSURANCE COMPANY, Real Party in Interest.

GARY LEWIS, No. 78243 Petitioner, vs. THE EIGHTH JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA, IN AND FOR THE COUNTY OF CLARK; AND THE HONORABLE ERIC JOHNSON, DISTRICT JUDGE, Respondents, and UNITED AUTOMOBILE INSURANCE COMPANY; AND CHEYENNE NALDER, Real Parties in Interest.

&ARON COURT OF NEVADA

(0) 1947A ete.

tr+2,1 Consolidated original petitions for writs of mandamus challenging district court orders granting intervention, consolidation, and relief from judgment in tort actions. Petitions granted in part and denied in part.

Christensen Law Offices, LLC, and Thomas Christensen, Las Vegas; E. Breen Arntz, Chtd., and E. Breen Arntz, Las Vegas, for Petitioner Gary Lewis.

Stephens & Bywater, P.C., and David A. Stephens, Las Vegas, for Petitioner/Real Party in Interest Cheyenne Nalder.

Lewis Roca Rothgerber Christie LLP and Daniel F. PoIsenberg, Joel D. Henriod, J. Christopher Jorgensen, and Abraham G. Smith, Las Vegas; Winner & Sherrod and Matthew J. Douglas, Las Vegas, for Real Party in Interest United Automobile Insurance Company.

BEFORE GIBBONS, STIGLICH and SILVER, JJ.

OPINION

By the Court, STIGLICH, J.: These writ petitions arise from litigation involving a 2007 automobile accident where Gary Lewis struck then-minor Cheyenne Nalder. A default judgment was entered against Gary after he and his insurer, United Automobile Insurance Company (UAIC), failed to defend Cheyennes tort action. After Cheyenne's attempt a decade later to collect on the judgment through a new action, UAIC moved to intervene in and consolidate the decade-old tort lawsuit and this new action, and the district court granted UAIC's motions. In these proceedings, we consider whether intervention and consolidation after final judgment is permissible. Because SUPREME COURT OF NEvADA

2 (0) 1947A .1011.

'1[1i Mita we hold that intervention after final judgment is impermissible under NRS 12.130, we conclude that the district court erred in granting intervention in the initial action where a default judgment had been entered but properly granted intervention in the new action where a final judgment had not yet been entered. We also conclude that because an action that reached final judgment has no pending issues, the district court improperly consolidated the two cases. Finally, we conclude that the district court properly vacated a judgment erroneously entered by the district court clerk when a stay was in effect. Accordingly, we grant these petitions for extraordinary relief in part and deny in part. FACTS In July 2007, petitioner Gary Lewis struck then-minor petitioner/real party in interest Cheyenne Nalder with a vehicle. James Nalder, as guardian ad litem for Cheyenne, instituted an action in 2007 (Case No. 07A549111, hereinafter the 2007 case) seeking damages. In 2008, the district court entered a default judgment against Gary for approximately $3.5 million. Real party in interest UAIC did not defend the action because it believed that Gary's insurance policy at the time of the accident had expired. Subsequently, in a separate proceeding that was removed to federal court, the federal district court held that the insurance policy between UAIC and Gary had not lapsed because the insurance contract was ambiguous and, therefore, UAIC had a duty to defend Gary. The court, however, only ordered that UAIC pay James the policy limits.' Since 2008, James (on behalf of Cheyenne) has collected only $15,000—paid by UAIC—on the $3.5 million judgment.

1-James and Gary appealed that decision, which is now pending before the Ninth Circuit. SUPREME COURT OF NEVADA 3 (0) I947A

- )4 IN"Insiip In 2018, the district court substituted Cheyenne for James in the 2007 case, given that she had reached the age of majority. Cheyenne subsequently instituted a separate action on the judgment (Case No. A-18- 772220-C, hereinafter the 2018 case) or alternatively sought a declaration that the statute of limitations on the original judgment was tolled by Gary's absence from the state since at least 2010, Cheyenne's status as a minor until 2016, and UAIC's last payment in 2015. The complaint2 sought approximately $5.6 million, including the original judgment plus interest. UAIC moved to intervene in both the 2007 and the 2018 cases. While those motions were pending, Cheyenne and Gary stipulated to a judgment in favor of Cheyenne in the 2018 case. The district court did not approve their stipulation and granted UATC's motions to intervene in both the 2007 and the 2018 cases. It also granted UAIC's motion to consolidate the 2007 and the 2018 cases, concluding that the two cases shared significant issues of law and fact, that consolidating the cases would promote judicial economy, and that no parties would be prejudiced. After consolidation, the 2018 case was reassigned from Judge Kephart to Judge Johnson, the judge overseeing the 2007 case. During a hearing on the consolidated cases, the district court orally stayed the proceedings in the 2018 case pending the resolution of certified questions before this court in Nalder v. United Automobile Insurance Co., Docket No. 70504. The district court subsequently granted the stay in a minute order. On the same day, Gary filed an acceptance of an offer of judgment from Cheyenne despite the stay, and the district court clerk entered the judgment the following day. The district court

2Gary brought a third-party complaint against UAIC and its counsel in the 2018 case, which was later dismissed. SUPREME COURT OF NEVADA 4 (0) 1447A

GES subsequently filed a written order granting the stay and, because of the stay, granted UAIC relief from and vacated the judgrnent. Cheyenne and Gary filed this petition for a writ of mandamus in Docket No. 78085, asking this court to direct the district court to vacate the two orders granting UAIC's intervention in the 2007 and 2018 cases and to strike any subsequent pleadings from UAIC and related orders. Gary in Docket No. 78243 seeks a writ of mandamus directing the district court to vacate its order consolidating the cases, to reassign the 2018 case back to Judge Kephart, and to vacate its order granting UAIC's motion for relief from judgment. We have consolidated both petitions. 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, or to control an arbitrary or capricious exercise of discretion. Int'l Game Tech., Inc. v. Second Judicial Dist. Court, 124 Nev. 193, 197, 179 P.3d 556, 558 (2008). Whether to entertain a writ of mandamus is within this court's discretion, and the writ will not be issued if the petitioner has a plain, speedy, and adequate legal remedy. Smith v. Eighth Judicial Dist. Court, 107 Nev. 674, 677, 818 P.2d 849, 851 (1991). Generally, orders granting intervention and orders granting consolidation can be challenged on appeal. See generally, e.g., Lopez v. Merit Ins. Co., 109 Nev. 553, 853 P.2d 1266 (1993) (challenging intervention on appeal from final judgment); Zupancic v. Sierra Vista Recreation, Inc., 97 Nev.

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2020 NV 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nalder-vs-dist-ct-united-auto-ins-co-cw-78243-nev-2020.