263 P.3d 231
Nev.2011Background
- Walters personally guaranteed a $15,250,000 nonrecourse loan for Stallion Mountain Golf Course and waived the one-action rule in his guaranty.
- Foreclosure sale of Stallion Mountain occurred on December 8, 2008, with CBN purchasing the property for $5 million.
- Walters sued in May 2008 for declaratory relief and breach of the implied covenant; CBN answered with counterclaims in September 2008.
- In April 2009, CBN asserted a breach of guaranty and sought a deficiency against Walters; CBN also pursued a cross-claim for the deficiency against the Borrowers.
- CBN moved for summary judgment in June 2009 on the breach of guaranty; Walters argued the six-month deficiency-application deadline had expired and raised anti-deficiency defenses.
- The district court held CBN’s counterclaim and motion satisfied NRS Chapter 40’s deficiency-application requirements and scheduled a hearing to determine the deficiency, later; the matter is now reviewed by the Nevada Supreme Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the deficiency-application requirement was met. | Walters | Walters | CBN complied; the motion served as the deficiency application |
| Whether waivers of anti-deficiency rules affect the deficiency application and potential double recovery. | Walters | CBN | Waiver does not bar deficiency relief; no double recovery issue required |
Key Cases Cited
- McDonald v. D.P. Alexander, 121 Nev. 812, 123 P.3d 748 (2005) (one-action rule aims to prevent double recovery of debt and collateral)
- Bonicamp v. Vazquez, 120 Nev. 377, 91 P.3d 584 (2004) (one-action rule prohibits double recovery against debtor)
- Madera v. SIIS, 114 Nev. 253, 956 P.2d 117 (1998) (plain-language statutory interpretation governs outcome)
- International Game Tech. v. Dist. Ct., 124 Nev. 193, 179 P.3d 556 (2008) (de novo review for statutory interpretation in writ matters)
- Smith v. District Court (1991), 107 Nev. 674, 818 P.2d 849 (1991) (writs require a plain, speedy, adequate remedy in law)