Otak Nevada, Llc v. Eighth Judicial District Court of the State of Nevada ex rel. County of Clark

312 P.3d 491, 129 Nev. 799, 129 Nev. Adv. Rep. 86, 2013 WL 5962791, 2013 Nev. LEXIS 101
CourtNevada Supreme Court
DecidedNovember 7, 2013
DocketNo. 59050
StatusPublished
Cited by30 cases

This text of 312 P.3d 491 (Otak Nevada, Llc 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
Otak Nevada, Llc v. Eighth Judicial District Court of the State of Nevada ex rel. County of Clark, 312 P.3d 491, 129 Nev. 799, 129 Nev. Adv. Rep. 86, 2013 WL 5962791, 2013 Nev. LEXIS 101 (Neb. 2013).

Opinion

OPINION

By the Court,

Hardesty, J.:

Under NRS 17.245(1)(b), a defendant who enters into “a release or a covenant not to sue or not to enforce judgment ... in good faith” is “discharge[d] . . . from all liability for contribution and for equitable indemnity to any other [defendant].” The questions we are asked to decide in this original writ proceeding are; (1) If a defendant settles in good faith, does NRS 17.245(1)(b) bar “de facto” claims for contribution and/or equitable indemnity?; and (2) Are the contractor’s third-party claims in this matter considered “de facto” contribution and/or equitable indemnity claims that may be barred under NRS 17.245(1)(b)? We conclude that, regardless of the claim’s title, NRS 17.245(1)(b) bars all claims that seek contribution and/or equitable indemnity when the settlement is determined to be in good faith. Because we conclude that the contractor’s remaining third-party claims in this matter are “de facto” contribution claims, and are thus barred by NRS 17.245(l)(b), we grant this petition for writ of mandamus.

[803]*803 FACTS AND PROCEDURAL HISTORY

This petition arises from underlying litigation concerning a fatal automobile accident that occurred at a construction site in Las Vegas, Nevada. Real parties in interest Cheyenne Apartments PPG, LP; Pacificap Holdings XXIX, LCC; Pacificap Properties Group, LLC; Chad I. Rennaker; and Jason Q. Rennaker (collectively, P&R) are the owners and developers of the site; and real party in interest Pacificap Construction Services, LLC (PCS), was the general contractor.1 Petitioner Otak Nevada, LLC, an architecture firm, entered into an agreement with P&R to design a multifamily housing project. Otak hired subcontractor Orion Engineering and Surveying to design and implement necessary off-site road construction. Pursuant to the agreement, Orion was to design four traffic medians to be installed in the intersection adjoining the construction site and to replace traffic markers to alter the flow of traffic. However, one median was not installed, and the traffic markers were not replaced. These omissions allegedly caused the fatal automobile accident.

Following the accident, the plaintiffs and/or their estates filed complaints against, among others, PCS and P&R. After the plaintiffs amended their complaints to add Otak as a defendant, Otak and the plaintiffs reached a settlement agreement in which the plaintiffs agreed to dismiss all of their claims against Otak in exchange for $45,000, and assignment of Otak’s experts. Otak filed in the district court a motion for approval of good-faith settlement based on NRS 17.245. The district court denied the motion because it found that a $45,000 settlement was not a fair settlement amount for the plaintiffs, and thus, was not in good faith. After additional settlement negotiations, Otak and the plaintiffs agreed to a new settlement in the amount of $210,000, plus the assignment of Otak’s experts. Otak filed an amended motion for good-faith settlement, which was opposed by PCS and P&R on the basis that the proposed amount of the settlement was far less than Otak’s potential liability or its insurance policy limits and would unfairly shift Otak’s liability to the remaining defendants. The district court granted the motion.

After determining that Otak’s settlement with the plaintiffs was made in good faith, the district court granted P&R leave to file a third-party complaint against Otak.2 P&R’s third-party complaint [804]*804against Otak asserted claims for breach of contract, express indemnity, express contribution, breach of the covenant of good faith and fair dealing, professional negligence, and punitive damages.3 Otak moved to dismiss the complaint on the ground that the claims were all barred by NRS 17.245. It argued that NRS 17.245 bars all claims that are “de facto” contribution and/or equitable indemnity claims. Although the district court declined to dismiss P&R’s third-party complaint in its entirety, it did dismiss P&R’s claim for professional negligence. This petition for a writ of mandamus followed.

DISCUSSION

A writ of mandamus is available to compel the performance of an act that the law requires or to control an arbitrary or capricious exercise of discretion. NRS 34.160; Int’l Game Tech., Inc. v. Second Judicial Dist. Court, 124 Nev. 193, 197, 179 P.3d 556, 558 (2008). Whether a petition for extraordinary relief will be considered is purely discretionary with this court. Smith v. Eighth Judicial Dist. Court, 107 Nev. 674, 677, 818 P.2d 849, 851 (1991). Petitioner bears “the burden of demonstrating that extraordinary relief is warranted.” Pan v. Eighth Judicial Dist. Court, 120 Nev. 222, 228, 88 P.3d 840, 844 (2004).

Mandamus is not appropriate if the petitioner has “a plain, speedy and adequate remedy in the ordinary course of law.” NRS 34.170. Generally, an adequate legal remedy is afforded through the right to appeal. Pan, 120 Nev. at 224, 88 P.3d at 841. Thus, we “ ‘will not entertain a writ petition challenging the denial of a motion to dismiss [unless] ... the issue is not fact-bound and involves an unsettled and potentially significant, recurring question of law.’”4 MountainView Hosp., Inc. v. Eighth Judicial Dist. Court, 128 Nev. 180, 185, 273 P.3d 861, 864-65 (2012) (second alteration in original) (quoting Buckwalter v. Eighth Judicial Dist. Court, 126 Nev. 200, 201, 234 P.3d 920, 921 (2010)). Here, [805]*805whether P&R’s remaining third-party claims should be dismissed depends on whether NRS 17.245 bars “de facto” claims for contribution and/or equitable indemnity, and whether P&R’s claims constitute “de facto” claims. Because this issue of law is a matter of first impression and may be dispositive of the case, we exercise our discretion to entertain this writ petition.5

The district court did not abuse its discretion by granting Otak’s motion for approval of good-faith settlement

Because our determination of whether P&R’s third-party claims are barred by NRS 17.245

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Bluebook (online)
312 P.3d 491, 129 Nev. 799, 129 Nev. Adv. Rep. 86, 2013 WL 5962791, 2013 Nev. LEXIS 101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/otak-nevada-llc-v-eighth-judicial-district-court-of-the-state-of-nevada-nev-2013.