291 P.3d 119
Nev.2012Background
- Respondents acquired appellants’ rights and interests in the district court action at a sheriff’s sale after a judgment execution.
- The underlying action involved breach of contract, fraud, and related counterclaims by appellants opposing respondents’ purchase of stores.
- The district court ruled for respondents, rescinding the agreement and awarding damages; counterclaims were denied.
- Appellants did not obtain a stay of execution; the writ allowed execution on the personal property of appellant Todd Butwinick and related claims.
- Respondents moved to substitute as real parties in interest and dismiss the appeal, asserting rights to appellants’ defenses at sale.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May a judgment creditor substitute and dismiss by executing on defenses? | Respondents acquired appellants’ defenses at sale. | Defenses are not subject to execution as personal property. | No; defenses cannot be executed as personal property; motion denied. |
| Does a 'thing in action' include a party’s defenses to an action? | Rights to defenses are transferable as part of the action. | Defenses are not assignable rights. | Defenses are not within 'thing in action'; cannot be bought to foreclose appellate rights. |
Key Cases Cited
- Gallegos v. Malco Enterprises of Nevada, 127 Nev. 579 (2011) (rights of action held by a judgment debtor are personal property subject to execution)
- Achrem v. Expressway Plaza Ltd., 112 Nev. 737 (1996) (rights to a tort action are not assignable)
- Maxwell v. Allstate Ins. Co., 102 Nev. 502 (1986) (rights of action based on fraud are not assignable)
- Prosky v. Clark, 32 Nev. 441 (1910) (rights of action based on fraud are not assignable; but are personal to the wronged)
