Hillcrest Investments, Ltd. v. Robison
2:15-cv-01509
D. Nev.Sep 2, 2016Background
- Plaintiffs Hillcrest Investments, Ltd. and KMI Zeolite, Inc. sued over contamination and alleged trespass related to the Amargosa (Lathrop) Mill property in Nye County, Nevada; BLM imposed a >$4,000,000 trespass fine related to the site.
- Plaintiffs allege earlier owner American Borate Company (ABC) contaminated the site and trespassed on adjacent BLM land; ABC later sold the property to Galtar, LLC without disclosing contamination.
- Defendants Nathan Robison and Robison Engineering Co. were parties to the litigation; they filed a sealed settlement and moved for a judicial determination that the settlement was made in good faith under Nevada Revised Statute § 17.245.
- The case was removed to federal court; Robison Defendants’ motion for good-faith determination (ECF No. 77) was unopposed, and a hearing was held on August 31, 2016.
- The court evaluated the settlement under factors adopted in Nevada federal decisions (from In re MGM Grand Hotel Fire Litig. and The Doctors Co. v. Vincent), focusing on amount paid, relation to insurer limits, and absence of collusion.
- The court found the sealed settlement amount fair and reasonable given litigation risks, insurance limits, prior discovery, and absence of collusion, and granted the motion, finding the settlement was in good faith.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Robison defendants' settlement is a "good-faith" settlement under NRS 17.245 | Plaintiffs did not oppose the motion (no objection to good-faith finding) | Settlement amount is fair given litigation risks, allocation to plaintiffs, defendants' insurance limits, and lack of collusion | Granted: court found the settlement made in good faith and discharged settling defendants from contribution/equitable indemnity |
Key Cases Cited
- The Doctors Co. v. Vincent, 98 P.3d 681 (Nev. 2004) (adopts and discusses factors for evaluating good-faith settlements under NRS 17.245)
- In re MGM Grand Hotel Fire Litigation, 570 F. Supp. 913 (D. Nev. 1983) (articulates factors—amount paid, allocation, insurer limits, financial condition, collusion—for good-faith settlement analysis)
- Velsicol Chemical v. Davidson, 811 P.2d 561 (Nev. 1991) (supports trial-court discretion in assessing good-faith settlement determinations)