WESTPARK OWNERS'ASS'N v. Dist. Ct.

167 P.3d 421
CourtNevada Supreme Court
DecidedSeptember 20, 2007
Docket48664
StatusPublished

This text of 167 P.3d 421 (WESTPARK OWNERS'ASS'N v. Dist. Ct.) 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
WESTPARK OWNERS'ASS'N v. Dist. Ct., 167 P.3d 421 (Neb. 2007).

Opinion

167 P.3d 421 (2007)

WESTPARK OWNERS' ASSOCIATION, a nonprofit corporation, Petitioner,
v.
The EIGHTH JUDICIAL DISTRICT COURT of the State of Nevada, in and for the COUNTY OF CLARK, and the Honorable Nancy M. Saitta, District Judge, Respondents, and
Westpark Associates, LLC, a Nevada Limited Liability Company; and Oxbow Construction, LLC, a Nevada Limited Liability Company, Real Parties in Interest.

No. 48664.

Supreme Court of Nevada.

September 20, 2007.

*423 Feinberg Grant Mayfield Kaneda & Litt, LLP, and Bruce G. Mayfield, Roger J. Grant, Charles M. Litt, and Daniel H. Clifford, Las Vegas, for Petitioner.

Ellis & Gordon and Aviva Y. Gordon, Las Vegas, for Real Parties in Interest.

BEFORE THE COURT EN BANC.[1]

OPINION

By the court, MAUPIN, C.J.:

This case comes to us by way of an original petition for a writ of mandamus or prohibition. In granting this petition in part, we consider and determine the scope of Nevada's residential constructional defect statutes, contained within NRS Chapter 40 from NRS 40.600 through NRS 40.695. In general, this legislation sets forth rights and remedies of homeowners, developers, and building contractors when disputes over constructional defects arise in connection with new homes or modifications to existing residential dwellings.[2]

*424 Petitioner Westpark Owners' Association (Association), a 144-unit condominium homeowners' association, gave written notice of constructional defects under NRS Chapter 40 to the project developer and contractor, real parties in interest Westpark Associates, LLC, and Oxbow Construction, LLC (collectively, Westpark). In response, Westpark filed a preemptive declaratory relief action in the district court seeking, among other things, a judicial determination that the Association could not proceed against Westpark under NRS Chapter 40 or otherwise. This petition challenges the respondent district court's entry of partial summary judgment in the declaratory relief action in favor of Westpark.[3]

SUMMARY OF DECISION

NRS Chapter 40 provides Nevada homeowners with a remedial process for asserting claims against "contractor[s]"[4] for defects in the construction of a "new residence" or for defects in the "alteration of or addition to an existing residence."[5] Although NRS 40.630 defines a "residence" as "any dwelling in which title to the individual units is transferred to the owners," nowhere in Chapter 40 does the Legislature define the term "new residence." Important to this decision, however, is that rental apartment units are not residences for the purposes of Chapter 40.

With these precepts in mind, the district court determined that 108 of the 144 Westpark condominium units had been originally developed as apartments and thus, despite their ultimate sale to the Association's members, those units could not be the subject of relief under NRS Chapter 40. It additionally determined that the units, after their sale to the public as condominiums, were not "new" residences subject to the Chapter 40 legislative scheme. Beyond Chapter 40, the district court order also foreclosed relief of any kind concerning these homes.

In summary, for NRS Chapter 40 remedies to apply, affected dwellings must be "residences" under NRS 40.630 and be either "new" or include newly completed improvements under NRS 40.615. Because title to the condominium units constructed by Westpark transferred to individual purchasers at the time of sale, we conclude that the 108 units clearly qualified as "residences" under the plain meaning of NRS 40.630. Unfortunately, whether the units were "new" cannot be resolved under a plain reading of NRS 40.615. Accordingly, because the Legislature has not seen fit to define what constitutes a "new" residence for the purpose of lodging statutory constructional defect claims, we must interpret Chapter 40 and provide a reasonable definition of that term. As discussed below, we determine that, for the purposes of NRS Chapter 40, a residence is "new" only if it is a product of original construction that has been unoccupied as a dwelling from the completion of its construction to the point of sale. Because the homes in question in this case were occupied for a period of years by residential tenants before their ostensible "conversion" or release for sale to the general public by Westpark, we conclude that the homes were not "new" residences covered by NRS Chapter 40.

The NRS Chapter 40 statutory scheme applies exclusively to constructional defect claims lodged in connection with new residences as defined in this opinion and to newly effected improvements to existing residences. In the underlying proceedings, the district court was required to determine whether the units constructed by Westpark were "new" under NRS 40.630 or included newly completed improvements under NRS 40.615, and whether any of the Association's non-Chapter 40 claims for negligence and breach of warranty survived. While the court correctly determined that the units in question were not "new" residences covered by the NRS Chapter 40 remedial scheme,[6] it erred in foreclosing any opportunity to litigate the Association's constructional defect claims arising from any additions, modifications, *425 or alterations to the units undertaken by Westpark in preparation for their release for sale. To the extent the provisions of Chapter 40 did not apply to the Association's claims, the district court also erred in foreclosing the Association's non-Chapter 40 claims.

For the reasons stated below, we grant the petition in part and instruct the district court to consider whether and the extent to which any of the alleged defects arose from alterations or additions made in preparation for sale, and whether any of the Association's non-Chapter 40 claims survive.[7]

FACTS AND PROCEDURAL HISTORY

This case involves a residential development located in Las Vegas, Nevada. An entity known as Park Lake Partnership originally developed the project on a partial basis, including common areas and 36 residential condominium units. All of the 36 units were sold in the initial release to the general public.

Park Lake eventually declared bankruptcy without completing the project. In the course of the Park Lake bankruptcy proceedings, Westpark acquired the property and ultimately built an additional 108 units within the complex.

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Westpark Owners' Ass'n v. Eighth Judicial District Court
167 P.3d 421 (Nevada Supreme Court, 2007)

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