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255 P.3d 1287
Nev.
2011
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Background

  • Gallegos was injured in a hit-and-run caused by Gonzalez, who rented a Budget car in budget's name.
  • Gonzalez allegedly carried a supplemental renter's liability insurance policy issued by First American and managed by Knight.
  • Gallegos obtained a default judgment against Gonzalez for over $400,000 but could not collect because Gonzalez did not appear at judgment debtor exams.
  • Gallegos sought a judicial assignment of Gonzalez's unasserted claims against respondents, which was granted by an earlier district court.
  • Gallegos filed a separate action against respondents asserting the assigned claims; respondents moved for summary judgment arguing the assignment was invalid.
  • The district court granted summary judgment, vacating the assignment; Gallegos appealed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether a judgment debtor's right of action is property subject to judicial assignment. Gallegos argues the right is assignable under NRS 21.080 and 21.320. Respondents contend the right cannot be validly assigned in this context and Gallegos lacks standing. Rights of action of a judgment debtor are property subject to execution and may be judicially assigned.
Whether the district court properly applied the assignment and related statutes (NRS 21.080, 21.320) to validate the assignment. Gallegos maintains the assignment is valid under the cited statutes. Respondents argue the assignment was improper and should be vacated. The district court erred in granting summary judgment; the assignment is permissible under NRS 21.080 and 21.320, and the matter must be remanded for further proceedings.

Key Cases Cited

  • Sportsco Enter. v. Morris, 112 Nev. 625 (Nev. 1996) (execution liberal construction favors judgment creditors)
  • Denham v. Farmers Insurance Co., 262 Cal. Rptr. 146 (Cal. Ct. App. 1989) (Nevada allows execution upon a cause of action)
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Case Details

Case Name: Gallegos v. Malco Enterprises of Nevada, Inc.
Court Name: Nevada Supreme Court
Date Published: Aug 4, 2011
Citations: 255 P.3d 1287; 127 Nev. Adv. Rep. 51; 2011 Nev. LEXIS 48; 127 Nev. 579; No. 55633
Docket Number: No. 55633
Court Abbreviation: Nev.
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    Gallegos v. Malco Enterprises of Nevada, Inc., 255 P.3d 1287