The line between a direct and derivative action is often indistinct and hence the object of controversy. In 2017, the Nevada Supreme Court held that a class action lawsuit should be dismissed for failure to plead a...more
More and more corporations are moving to Nevada. Is this because of the lack of corporate or franchise taxes associated with incorporating in the state or the lack of state income tax? Likely not (Nevada does not collect...more
Laura Graham was injured when she tripped over a sprinkler box located on property owned by a single member limited liability company. She sued the LLC and asserted that its member was the alter ego of the LLC and the case...more
To non-lawyers, a "person" is usually understood to refer to a human being. At law, entities such as corporations and limited liability persons are often endowed with personhood. See, e.g., Cal. Corp. Code § 18 ("'Person'...more
Nevada, like California, has enacted an anti-SLAPP law that is intended to protect citizens' First Amendment rights to petition the government for redress of grievances and to free speech by limiting the chilling effect of...more
Disputes over whether arbitration may be compelled generally fall into four categories. First, a signatory to an arbitration agreement may seek to compel another signatory to arbitrate. Second, a signatory may seek to...more
In 2016, I wrote about the Nevada Supreme Court's refusal to "blue pencil" non-compete agreements so as to make theme enforceable. Golden Road Motor Inn, Inc. v. Islam, 132 Nev. 476, 488, 376 P.3d 151, 159 (2016). The...more
The Nevada Supreme Court recently reversed the denial of a motion to compel arbitration, explaining that the plaintiff’s arguments that the contract at issue was illegal were not a valid basis to deny arbitration because...more
Merger and acquisition agreements almost invariably include a promise by the seller to continue to operate the business in the "ordinary course". This promise is typically included to provide assurance to the buyer that...more
Last week the Nevada Supreme Court answered the following question that was certified to it by the Ninth Circuit Court of Appeals...more
NRS 107.028 lists a number of different categories of persons who may serve as trustee under a deed of trust. One category is domestic or foreign entity which holds a current state business license issued by the Secretary of...more
A “pay-if-paid” provision typically makes payment by an owner to a general contractor a condition precedent to the general contractor’s obligation to pay a subcontractor for work the subcontractor has performed....more
In a short order of affirmance issued last week, the Nevada Supreme Court affirmed a basic requirement of derivative litigation. J. McDonald Co. v. Tropical & Losee, LLC, 2022 WL 6833521 (Nev. Oct. 11, 2022). The case...more
Recreational marijuana use is legal under Nevada state law. But could recreational marijuana use jeopardize an employee’s employment? Nevada voters voted to legalize recreational marijuana use effective January 1, 2017. The...more
In a victory for employers in wage and hour class actions, on August 11, 2022, the Nevada Supreme Court affirmed the grant of summary judgment in favor of HG Staffing, LLC and MEI-GSR Holdings, LLC, d/b/a Grand Sierra...more
A dozen years ago, I wrote about California's single subject rule governing legislation - "A statute shall embrace but one subject, which shall be expressed in its title". Cal. Const. Art. IV, § 9. A similar rule applies to...more
Statutes of repose establish a legislature’s determination of when defendants should be free from liability. As set forth in Nevada Revised Statute (NRS) 11.202, the statute of repose for construction improvements in Nevada...more
George Springmeyer had a storied legal career during the early years of the twentieth century as the District Attorney for Esmeralda County, Nevada and then the U.S. Attorney for the District of Nevada. His service as...more
In October, the Nevada Supreme Court revisited the enforceability of pay-if-paid clauses in construction contracts. Despite being enacted nearly two decades ago and being amended several times since, the Nevada Prompt Payment...more
What, if any, is the standing of a corporation in a derivative action? Until this month, that question was yet to be addressed by the Nevada Supreme Court. We now have an answer....more