Case Information
*1 136 Nev., Advance Opinion I'll
IN THE SUPREME COURT OF THE STATE OF NEVADA ROBERT G. REYNOLDS, AN No. 78187 INDIVIDUAL; AND DIAMANTI FINE JEWELERS, LLC, A NEVADA LIMITED LIABILITY COMPANY,
FILED Appellants, vs. RAFFI TUFENKJIAN, AN INDIVIDUAL; AND LUXURY HOLDINGS LV, LLC, A NEVADA LIMITED LIABILITY COMPANY, Respondents.
Motion to substitute in as real parties in interest and dismiss appeal from a district court order granting summary judgment in a tort and breach of contract action. Eighth Judicial District Court, Clark County; Mark R. Denton, Judge.
Motion granted in part; appeal dismissed in part. Marx Law Firm PLLC and Bradley M. Marx, Las Vegas, for Appellants. Marquis Aurbach Coffing and Terry A. Moore and Christian T. Balducci, Las Vegas, for Respondents. BEFORE HARDESTY, STIGLICH and SILVER, JJ.
SUPREME COURT OF NEVADA (0) 1947A
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*2 P I N I ON B y t h e C ou r t
, S I L V E R , J . : A p e nd i ng m o ti on i n t h i s ca s e p r ov i d e s u s t h e oppo r t un it y t o a dd r e ss t h e e x t e n t t o w h i c h a j udg m e n t d e b t o r ' s r i gh t s o f ac ti on a r e s ub j ec t t o e x ec u ti on t o s a ti s f y a j udg m e n t . R e s pond e n t s h a v e f il e d a m o ti on t o s ub s tit u t e t h e m s e l v e s i n p l ace o f a pp e ll a n t s a nd t o vo l un t a r il y d i s m i ss t h i s a pp ea l b eca u s e t h e y pu r c h a s e d a pp e ll a n t s r i gh t s a nd i n t e r e s t s i n t h e und e r l y i ng d i s t r i c t c ou r t ac ti on a t a j udg m e n t e x ec u ti on s a l e . W e a g r ee w it h r e s pond e n t s i n p a r t . A lt hough N e v a d a ' s j udg m e n t e x ec u ti on s t a t u t e s p e r m it a j udg m e n t c r e d it o r (r e s pond e n t s ) t o e x ec u t e on a d e b t o r ' s ( a pp e ll a n t s ) p e r s on a l p r op e r t y , i n c l ud i ng t h e r i gh t t o r ec ov e r a d e b t , m on e y , o r t h i ng i n ac ti on , t ho s e s t a t u t e s li m it t h e ti tl e t h e s h e r i ff ca n c o nv e y a t a n e x ec u ti on s a l e t o on l y t h a t titl e w h i c h t h e d e b t o r c ou l d c onv e y h i m s e l f . N e v a d a l a w , i n t u r n , r e s t r i c t s t h e r i gh t t o c onv e y ce r t a i n c l a i m s by m a k i ng t h e m un a ss i gn a b l e . A cc o r d i ng l y , w e ho l d t h a t a j udg m e n t d e b t o r ' s c l a i m s t h a t a r e un a ss i gn a b l e s i m i l a r l y c a nno t b e pu r c h a s e d a t a n e x e c u ti on s a l e . A s s u c h , r e s pond e n t s d i d no t pu r c h a s e t h e r i gh t s t o a pp e l l a n t s ' un a ss i gn a b l e c l a i m s . T hu s , w e g r a n t i n p a r t r e s pond e n t s ' m o ti on a nd d i s m i ss t h i s a pp ea l a s t o a pp e ll a n t s ' a ss i gn a b l e c l a i m s — n e g li g e n t m i s r e p r e s e n t a ti on a nd b r eac h o f c on t r ac t .
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T S A ND P R O CE DU RA L H I S T O R Y A p p e ll a n t s R o b e r t G . R e y n o l d s a n d D i a m a n ti F i n e J e w e l e r s , LL C , b r ough t t h e und e r l y i ng ac ti on a g a i n s t r e s pond e n t s R a ff i T u f e nk ji a n a nd L uxu r y H o l d i ng s L V , LL C . A pp e ll a n t s a ll e g e d b r eac h o f c on t r ac t , fr a ud , a nd t o r t c l a i m s r e l a t e d t o t h e i r pu r c h a s e o f a j e w e l r y s t o r e fr o m r e s po nd e n t s , a r g u i ng t h a t t h e y r e li e d on r e s pond e n t s ' f a l s e r e p r e s e n t a ti on s o f t h e s t o r e s v a l u e t o t h e i r d e t r i m e n t . T h e d i s t r i c t c ou r t e n t e r e d s u mm a r y
2 *3 j ud g m e n t f o r re s p o nd e n t s , f i nd i n g n o g e nu i n e i ss u e s o f m a t er i a l f a c t re ga r d i n g re s p o nd e n t s a ll e g e d m i s re p re s e n t a t i o n s o r a pp e ll a n t s ' j u s t i f i a b l e re li a n ce up o n a n y o f re s p o nd e n t s ' s t a t e m e n t s . T h e d i s t r i c t c o u r t a l s o a w a r d e d re s p o nd e n t s $57 , 941 . 92 i n a tt o r n e y f ee s a nd c o s t s pu r s u a n t t o a p r ov i s i o n i n t h e p a r t i e s ' c o n t r a c t .
A pp e ll a n t s a pp e a l e d t h e j ud g m e n t bu t d i d n o t o b t a i n a s t ay o f e x ec u t i o n o n t h e a w a r d o f a tt o r n e y f ee s a nd c o s t s , c l a i m i n g t h e y c o u l d n o t a ff o r d t o p o s t a s up er s e d e a s b o nd . W h il e t h e a pp e a l w a s p e nd i n g , re s p o nd e n t s o b t a i n e d a w r i t o f e x ec u t i o n , w h i c h , i n re l e va n t p a r t , a ll o w e d t h e m t o e x ec u t e aga i n s t R e y n o l d s ' p er s o n a l p r o p er t y . T h e w r i t t h ere f o re d i rec t e d t h e s h er i ff t o l e vy a nd s e i ze up o n a n y a nd a ll c a u s e s o f a c t i o n , c l a i m s , a ll e ga t i o n s , a ss er t i o n s o r d e f e n s e s o r a pp e ll a n t s , i n c l ud i n g t h o s e i n t h e und er l y i n g d i s t r i c t c o u r t a c t i o n .
A t t h e s h er i ff ' s s a l e , re s p o nd e n t s pu rc h a s e d , f o r $100 , " a ll t h e r i g h t s , t i t l e a nd i n t ere s t o r a pp e ll a n t s i n t h e d i s t r i c t c o u r t a c t i o n . R e s p o nd e n t s n o w m ov e t o s ub s t i t u t e t h e m s e l v e s i n p l a ce o f a pp e ll a n t s pu r s u a n t t o NRA P 43 ( a ll o w i n g s ub s t i t u t i o n o f a p a r t y o n a pp e a l ) a nd t o vo l un t a r il y d i s m i ss t h e a pp e a l und er NRA P 42 ( b ) ( a ll o w i n g p a r t i e s t o vo l u n t a r il y d i s m i ss a n a p p e a l ) , o n t h e b a s i s t h a t t h e y n o w o w n t h e c l a i m s o n a pp e a l . A pp e ll a n t s re s p o nd t h a t t h e N e va d a L e g i s l a t u re d i d n o t i n t e nd f o r NR S 10 . 045 , w h i c h d e f i n e s p er s o n a l p r o p er t y t o i n c l ud e " t h i n g s i n a c t i o n , " t o a ll o w a p a r t y t o pu rc h a s e s u c h " t h i n g s i n a c t i o n " a s a m e a n s t o e li m i n a t e a li t i ga n t ' s a pp e ll a t e r i g h t s . T h e y a r g u e t h a t g r a n t i n g t h e m o t i o n w o u l d p re v e n t p a r t i e s w h o m ay n o t h av e t h e f i n a n c i a l a b ili t y t o s a t i s f y a c o n t e s t e d j ud g m e n t f r o m a ss er t i n g t h e i r r i g h t s t o a n a pp e a l .
T h i s c o u r t o r d e r e d t h e p a r t i e s t o s u b m i t s up p l e m e n t a l b r i e f i n g o n t h e i ss u e o f w h e t h er e a c h o f a pp e ll a n t s ' c l a i m s w ere p r o p er l y a ss i g n e d t o S U P R E M E C o w '
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E VADA 3 ( [0] ) [19] [47] A . g e p p *4 r e s pond e n t s a s a r e s u lt o f t h e e x ec u ti on s a l e . S ee R ey no l d s v . T u f e n k ji an , D o c k e t N o . 78187 ( O r d e r f o r S upp l e m e n t a l B r i e f i ng , N ov . 1 , 2019 ) . R e s pond e n t s a r gu e t h a t a ll o f t h e c l a i m s w e r e p r op e r l y a ss i gn e d b a s e d on s t a t u t o r y l a w , w h il e a pp e ll a n t s a r gu e t h a t , b eca u s e t h e c l a i m s w e r e p e r s on a l t o R e yno l d s , t h e y w e r e no t a ss i gn a b l e , a nd t h a t t h i s c ou r t s hou l d vo i d t h e e x ec u ti on s a l e on pub li c po li c y g r ound s .
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I S C U SS I O N O n l y a ss i gnab l e t h i ng s i n a c ti on a r e s ub j ec t t o exec u ti on und e r N ev ada l a w N R S 21 . 320 a ll o w s a d i s t r i c t c ou r t t o o r d e r a j udg m e n t d e b t o r ' s non e x e m p t p r op e r t y " b e a pp li e d t o w a r d t h e s a ti s f ac ti on o f t h e j udg m e n t " a g a i n s t h i m . N R S 21 . 080 ( 1 ) p r ov i d e s t h a t p r op e r t y li a b l e t o s u c h e x ec u ti on i n c l ud e s a ll o f t h e j udg m e n t d e b t o r ' s p e r s on a l p r op e r t y . B u t s ee N R S 21 . 090 ( li s ti ng p r op e r t y e x e m p t fr o m e x ec u ti on ) . T h e d e f i n iti on o f I p ] e r s on a l p r op e r t ? i n c l ud e s " t h i ng s i n a c ti on . " N R S 10 . 045 .
N e v a d a ' s g e n e r a l po li c y i s t h a t a s t a t u t e s p ec i f y i ng p r op e r t y t h a t i s li a b l e t o e x ec u ti on " m u s t b e li b e r a ll y c on s t r u e d f o r t h e b e n e f it o f c r e d it o r s . " Spo r t s c o E n t e rs . v . M o rr i s , 112 N e v . 625 , 630 , 917 P . 2d 934 , 937 ( 1996 ) ( c iti ng 33 C . J . S . E xec u ti on s § 18 ( 1942 )) . R e f e r e n c i ng t h a t g e n e r a l po li c y a nd t h e d e f i n iti on o f a " t h i ng i n ac ti on " a s " a r i gh t t o b r i ng a n ac ti on t o r ec ov e r a d e b t , m on e y , o r t h i ng , " G a ll e go s v . M a l c o E n t e rs . o f N ev ., I n c ., 127 N e v . 579 , 582 , 255 P . 3d 1287 , 1289 ( 2011 ) ( quo ti ng C ho s e i n A c ti on , B l a ck ' s L a w D i c ti ona r y ( 9 t h e d . 2009 )) , t h i s c ou r t h a s c on c l ud e d t h a t " r i gh t s o f ac ti on h e l d by a j udg m e n t d e b t o r a r e p e r s on a l p r op e r t y s ub j ec t t o e x ec u ti on i n s a ti s f ac ti on o f a j udg m e n t , " i d . a t 582 , 255 P . 3d a t 1289 . B u t i n B u t w i n i ck v . H e pn e r , t h i s c ou r t d e t e r m i n e d t h a t " a ' t h i ng i n ac ti on ' s ub j ec t t o e x ec u t i on . . . do e s no t i n c l ud e a p a r t y ' s d e f e n s e s t o a n ac t i on , " 128 N e v . 718 , 723 , 291 P . 3d 119 , 121 - 22 ( 2012 ) , b eca u s e a p a r t y ' s d e f e n s i v e r i gh t s do no t c on s tit u t e a " r i gh t t o b r i ng a n ac ti on t o r ec ov e r a d e b t , m on e y ,
4 *5 o r t h i n g , " i d . a t 722 , 291 P . 3 d a t 122 ( qu o t i n g C h o s e i n A c ti o n , B l a c k ' s L a w D i c ti o n a r y ( 9 t h e d . 2009 )) .
I n t h i s c a s e , re s p o nd e n t s c o n t e nd t h a t , b y pu rc h a s i n g a pp e ll a n t s ' " t h i n g s i n a c t i o n " a t t h e s h er i ff s s a l e , t h e y a re e n t i t l e d t o s ub s t i t u t e t h e m s e l v e s f o r a pp e ll a n t s i n t h i s a pp e a l a s t h e n o w - o w n er s o f t h e c l a i m s b e i n g a pp e a l e d . T h i s w o u l d o n l y b e t r u e , h o w e v er , i f " t h i n g s i n a c t i o n " e n c o m p a ss e s a ll o f a pp e ll a n t s und er l y i n g c l a i m s . I n t h i s v e i n , a pp e ll a n t s a r g u e t h a t c l a i m s t h a t a re p er s o n a l i n n a t u re a re n o t i n c l ud e d i n " t h i n g s i n a c t i o n " a nd , t h ere f o re , re s p o nd e n t s d o n o t o w n a pp e ll a n t s ' p er s o n a l c l a i m s a nd t h i s c o u r t s h o u l d d e n y t h e m o t i o n t o s ub s t i t u t e . T h e y f u r t h er a r g u e t h a t a ll o w i n g t h e pu rc h a s e o f t h e i r c l a i m s i m p r o p er l y i m p e d e s o n t h e i r a pp e ll a t e r i g h t s a nd t h ere f o re v i o l a t e s pub li c p o li c y .
S o m e j u r i s d i c t i o n s t h a t p er m i t e x ec u t i o n up o n a d e b t o r ' s " t h i n g s i n a c t i o n " n a rr o w l y i n t er p re t t h e t er m t o o n l y i n c l ud e c l a i m s t h a t , und er t h a t j u r i s d i c t i o n ' s l a w , t h e d e b t o r c o u l d o t h er w i s e a ss i g n t o a n o t h er p a r t y . S ee , e . g ., H o lt v . S t o ll e n w e r c k , 56 S o . 912 , 913 ( A l a . 1911 ) ( h o l d i n g t h a t " t h i n g s i n a c t i o n " o n l y i n c l ud e s a ss i g n a b l e r i g h t s o f a c t i o n ); W itt e n a u e r v . K a e li n , 15 S . W . 2 d 461 , 462 - 63 ( K y . C t . A pp . 1929 ) ( c o n c l ud i n g t h a t t h e t er m " c h o s e i n a c t i o n " d o e s n o t i n c l ud e a n y r i g h t o f a c t i o n t h a t m ay n o t b e a ss i g n e d ) . O t h er j u r i s d i c t i o n s a pp l y a b r oa d er i n t er p re t a t i o n o f " t h i n g s i n a c t i o n " t o i n c l ud e a n y c l a i m f o r d a m ag e s , w i t h o u t c o n cer n f o r t h e c l a i m ' s a ss i g n a b ili t y o t h er w i s e . S ee , e . g ., O ' G r ad y v . P o tt s , 396 P . 2 d 285 , 289 ( K a n . 1964 ) ( c h a r a c t er i z i n g a t o r t c l a i m a s a c h o s e i n a c t i o n a nd t h ere f o re p er s o n a l p r o p er t y ); C h i ., B u r li n g t o n & Q u i n cy R . R . C o . v . D unn , 52 111 . 260 , 264 ( 1869 ) ( " A r i g h t t o s u e f o r a n i n j u r y , i s a r i g h t o f a c t i o n — i t i s a t h i n g i n a c t i o n , a nd i s p r o p e r t y . . . . . " ) . F o r t h e r e a s o n s s e t f o r t h b e l o w , w e ag re e
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EV ADA 5 ( [0] ) I [94] [7] A *6 w it h t h e f o r m e r a pp r o ac h a nd ho l d t h a t " t h i ng s i n ac ti on " on l y i n c l ud e s t ho s e c l a i m s t h a t t h e j udg m e n t d e b t o r h a s t h e po w e r t o a ss i gn .
N e v a d a i s on e o f s e v e r a l j u r i s d i c ti on s t h a t p r oh i b it s t h e a ss i gn a b ilit y o f ce r t a i n ca u s e s o f ac ti on , r e g a r d l e ss o f ho w t h e a ss i gn m e n t i s acc o m p li s h e d . ' S ee , e . g ., C ha ff ee v . S m it h , 98 N e v . 222 , 223 - 24 , 645 P . 2d 966 , 966 ( 1982 ) ( g e n e r a ll y p r oh i b iti ng t h e a ss i gn m e n t o f un a ss e r t e d l e g a l m a l p r ac ti ce c l a i m s on pub li c po li c y g r ound s ) ; G r ub e r v . B a ke r , 20 N e v . 453 , 469 , 23 P . 858 , 862 ( 1890 ) ( vo i d i ng t h e a ss i gn m e n t o f a r i gh t t o b r i ng a c l a i m i n ac ti on f o r fr a ud a s b e i ng c on t r a r y t o pub li c po li c y b eca u s e a fr a ud c l a i m i s p e r s on a l t o t h e on e d e fr a ud e d ) ; a cc o r d M ill e r v . J a ck s on H o s p . & C li n i c , 776 S o . 2d 122 , 125 ( A l a . 2000 ) ( ac kno w l e dg i ng t h e g e n e r a l r u l e t h a t " pu r e l y p e r s on a r t o r t c l a i m s a r e no t a ss i gn a b l e ) ; W e bb v . G ittl e n , 1 74 P . 3 d 2 7 5 , 2 7 8 ( A r i z . 2008 ) ( ho l d i ng t h a t m o s t c l a i m s a r e g e n e r a ll y a ss i gn a b l e " e x ce p t t ho s e i nvo l v i ng p e r s on a l i n j u r y " ) . F o r e x a m p l e , i n P r o s ky v . C l a r k , t h i s c ou r t h e l d t h a t fr a ud c l a i m s a r e no t a ss i gn a b l e b eca u s e t h e y " a r e p e r s on a l t o t h e on e d e fr a ud e d . " 32 N e v . 441 , 445 , 109 P . 793 , 794 ( 1910 ) . A nd i n [1] R e s pond e n t s a r gu e t h a t t h e i r ac qu i s iti on o f R e yno l d s t h i ng s i n ac ti on a t a s h e r i ff s e x ec u ti on s a l e w a s a pu r c h a s e , no t a n a ss i gn m e n t , s u c h t h a t a ny r e s t r i c ti on s on t h e a ss i gn a b ilit y o f R e yno l d s ' c l a i m s s hou l d no t a pp l y . T h e on l y d i ff e r e n ce b e t w ee n a n " a ss i gn m e n t " a nd a " s a l e , " ho w e v e r , i s t h e p a y m e n t o f c on s i d e r a ti on . C o m pa r e A s s i gn m e n t , B l a ck ' s L a w D i c ti ona r y ( 1 1 t h e d . 2 0 1 9 ) ( d e f i n i n g a n " a ss i g n m e n e a s W il e t r a n s f e r o f r i gh t s o r p r op e r t y " ) , w it h Sa l e , i d . ( d e f i n i ng a " s a l e " a s " M ll e t r a n s f e r o f p r op e r t y o r titl e f o r a p r i ce " ( e m ph a s i s a dd e d )) . O u r j u r i s p r ud e n ce h a s no t d r a w n a d i s ti n c ti on b e t w ee n p r op e r t y ac qu i r e d by j ud i c i a l s a l e a nd p r op e r t y ac qu i r e d by a ss i gn m e n t , a nd w e d ec li n e t o do s o no w . S ee , e . g ., G a ll e go s , 127 N e v . a t 582 , 255 P . 3d a t 1289 ( ho l d i ng t h a t a j ud i c i a ll y a ss i gn e d r i gh t o f ac ti on w a s p e r s on a l p r op e r t y s ub j ec t t o e x ec u ti on t o s a ti s f y a j udg m e n t ) ; Spo r t s c o E n t e rs ., 112 N e v . a t 627 - 28 , 917 P . 2d a t 935 ( c on s i d e r i ng c o m p e ti ng i n t e r e s t s i n p r op e r t y a ss i gn e d by bo t h a vo l un t a r y s a l e a nd a n e x ec u ti on s a l e ) .
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EV ADA 6 ( [0] ) [1] [94] [7] A [4] [0] [9] [4] *7 M a x w e ll v . A ll s t a t e I n s u r an ce C o ., w e h e l d t h a t s ub r og a ti on c l a u s e s a ll o w i ng t h e a ss i gn m e n t o f c l a i m s i n i n s u r a n ce c on t r ac t s v i o l a t e d pub li c po li c y du e t o t h e po t e n ti a l t h a t on l y t h e i n s u r e r w ou l d r e c e i v e p a y m e n t s fr o m a p e r s on a l i n j u r y ac ti on . 102 N e v . 502 , 506 - 07 , 728 P . 2d 812 , 815 ( 1986 ) ( ho l d i ng t h a t s u c h a r e s u lt w ou l d d e p r i v e t h e i n j u r e d p a r t y o f " h i s ac t u a l d a m a g e s [ a nd ] t h e b e n e f it o f t h e p r e m i u m s h e h a s p a i d " ) . S u c h pub li c po li c y c on ce r n s do no t a r i s e , ho w e v e r , w h e n a n i n j u r e d p a r t y a ss i gn s a w a y t h e r i g h t t o p r o cee d s fr o m a p e r s o n a l i n j u r y ac ti o n , r a t h e r t h a n t h e c l a i m it s e l f . S ee A c h r e m v . E x p r e ss w a y P l a z a L t d ., 112 N e v . 737 , 739 - 41 , 917 P . 2d 447 , 448 - 49 ( 1996 ) ( ob s e r v i ng t h a t t h e r e i s a d i s ti n c ti on " b e t w ee n a ss i gn i ng t h e r i gh t s t o a t o r t ac ti on a nd a ss i gn i ng t h e p r o cee d s fr o m s u c h a n ac ti on " ) . T h i s i s b eca u s e t h e a . ss i gn m e n t o f t h e p r o cee d s fr o m a t o r t ac ti on s till p e r m it s t h e i n j u r e d p a r t y t o r e t a i n c on t r o l o f h i s l a w s u it " w it hou t a ny i n t e rf e r e n ce " fr o m a t h i r d - p a r t y a ss i gn ee . I d . O t h e r c l a i m s , s u c h a s c on t r ac t c l a i m s , a r e g e n e r a ll y a ss i gn a b l e un l e ss t h e y a r e p e r s on a l i n n a t u r e . S ee , e . g ., R u i z v . C it y o f N . L a s V e ga s , 127 N e v . 254 , 261 - 62 , 255 P . 3d 216 , 221 ( 2011 ) (r ec ogn i z i ng t h a t c on t r ac t s a r e fr ee l y a ss i gn a b l e , s ub j ec t t o ce r t a i n li m it a ti on s ) ; 6 A m . J u r . 2d A ss i gn m e n t s § 46 ( 2018 ) ( e xp l a i n i ng t h a t c l a i m s b a s e d on " c on t r ac t s o f a pu r e l y p e r s on a l n a t u r e a r e a n e x ce p ti on t o t h e r u l e t h a t " c ho s e s i n ac ti on a r e g e n e r a ll y a ss i gn a b l e ) .
N e v a d a ' s s t a t u t o r y s c h e m e gov e r n i ng t h e e n f o r ce m e n t o f j udg m e n t s r e qu i r e s t h e s h e r i ff ' s o ff i ce t o ca rr y ou t a w r it o f e x ec u ti on by " c o ll ec ti ng [ a nd ] s e lli ng t h e [ d e b t o f s ] t h i ng s i n ac ti on a nd s e lli ng t h e o t h e r p r op e r t y . " N R S 21 . 110 . B u t , b eca u s e " a j udg m e n t c r e d i t o r ca n ac qu i r e no g r ea t e r r i gh t i n t h e p r op e r t y l e v i e d upon t h a n t h a t w h i c h t h e j udg m e n t d e b t o r po s s e ss e s , " a j ud g m e n t d e b t o r ' s p r op e r t y i s n o t s ub j ec t t o e x ec u ti on " un l e ss t h e d e b t o r h a s po w e r t o p a ss titl e t o s u c h p r op e r t y o r
S U P R E M E C o w '
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EV ADA 7 ( [0] ) I [9] [47] A [44] t [4] s o *8 i n t e r e s t i n p r op e r t y by h i s . . . o w n ac t . " 30 A m . J u r . 2d E xec u ti on s and E n f o r ce m e n t o f J udg m e n t s § 118 ( 2017 ) . I n o t h e r w o r d s , " no t eve r y i n t e r e s t i n p r op e r t y a d e b t o r m a y h a v e a r i gh t t o . . . m a y b e s ub j ec t e d t o s a l e und e r e x ec u ti on . " Sha w v . F r an k , 334 S . W . 2d 476 , 480 - 81 ( T e x . C i v . A pp . 1959 ) ( e m ph a s i s a dd e d ) . T hu s , w h il e t h e r e ca n b e no doub t t h a t R e yno l d s c l a i m s a r e " t h i ng s i n ac ti on " i n h i s h a nd s , s u c h t h a t t h e y a ll o w h i m t o b r i ng a n ac ti on f o r r ec ov e r y , s ee G a ll e go s , 127 N e v . a t 582 , 255 P . 3d a t 1289 , i f t h e c l a i m s a r e no t a ss i gn a b l e , t h e s h e r i ff ca nno t f o r ce s a l e o f t ho s e c l a i m s t o s a ti s f y a j udg m e n t a ny m o r e t h a n R e yno l d s c ou l d a ss i gn t h e m o f h i s o w n vo liti on . S ee , e . g ., S t a t e F a r m M u t . A u t o . I n s . C o . v . E s t e p , 873 N . E . 2d 1021 , 1025 - 26 (I nd . 2007 ) ( i nv a li d a ti ng t h e f o r ce d a ss i gn m e n t o f l e g a l m a l p r ac ti ce c l a i m s t o s a ti s f y a j udg m e n t b eca u s e t ho s e c l a i m s w e r e no t a ss i gn a b l e ) ; s ee a l s o S c a r l e tt v . B a r n e s , 121 B . R . 578 , 580 ( W . D . M o . 1990 ) ( ho l d i ng t h a t , und e r M i ss ou r i l a w , w h e t h e r a ca u s e o f ac ti on i s e x e m p t fr o m a tt ac h m e n t a nd e x ec u ti on d e p e nd s on w h e t h e r it i s a ss i gn a b l e ) ; C a r bo I ndu s ., I n c . v . A l c u s F u e l O il , I n c ., 998 N . Y . S . 2d 571 , 572 ( S up . C t . 2014 ) ( a pp l y i ng N e w Y o r k l a w t h a t r e qu i r e s p r op e r t y t o b e a ss i gn a b l e i n o r d e r f o r it t o b e r eac h e d t o s a ti s f y a j udg m e n t ) ; c f . C r a ft v . C r a ft , 757 S o . 2d 571 , 572 ( F l a . D i s t . C t . A pp . 2000 ) ( ob s e r v i ng t h a t p e r s on a l i n j u r y c l a i m s a r e no t a ss i gn a b l e a nd t hu s no t r eac h a b l e i n e x ec u ti on s a l e s ) . H a v i ng c on c l ud e d t h a t on l y a ss i gn a b l e c l a i m s a r e s ub j ec t t o e x ec u ti on , ou r r e s o l u ti on o f r e s p ond e n t s ' m o ti on d e p e nd s on w h e t h e r eac h o f a pp e ll a n t s ' c l a i m s w a s a ss i gn a b l e a nd t h e r e f o r e p r op e r l y e x ec u t e d on . T o r t c l a i m s f o r p e rs ona l i n j u r y a r e g e n e r a ll y no t a ss i gnab l e
A s s t a t e d a bov e , N e v a d a g e n e r a ll y p r oh i b it s t h e a ss i gn m e n t o f t o r t c l a i m s on pub li c po li c y g r ou nd s , a s m a ny t o r t c l a i m s a r e p e r s on a l i n n a t u r e a nd m ea n t t o r ec o m p e n s e t h e i n j u r e d p a r t y . S ee , e . g ., M a x w e ll , 102 N e v . a t 506 , 728 P . 2d a t 815 (r e j ec ti ng t h e s ub r og a ti on o f t o r t c l a i m s v i a a n
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EV ADA 8 ( [0] ) I [9] [4] [7] A *9 i n s u r a n ce c on t r ac t on pub li c po li c y g r ound s ) ; P r o s ky , 32 N e v . a t 445 , 109 P . a t 794 (r ec ogn i z i ng t h a t fr a ud c l a i m s a r e no t a ss i gn a b l e du e t o t h e i r p e r s on a l n a t u r e ) . B u t s ee A c h r e m , 112 N e v . a t 740 - 41 , 917 P . 2d a t 449 ( a ll o w i ng t h e a ss i gn m e n t o f p r o cee d s fr o m a t o r t ac ti on ) . T w o o f a pp e ll a n t s ' c l a i m s f a ll i n t o t h i s ca t e go r y . T h e f i r s t , fr a ud /i n t e n ti on a l m i s r e p r e s e n t a ti on , h a s a l r ea dy b ee n h e l d t o b e p e r s on a l i n n a t u r e a nd un a ss i gn a b l e . S ee P r o s ky , 32 N e v . a t 445 , 109 P . a t 794 . T h e s ec ond , e l d e r e xp l o it a ti on , p r e s e n t s a qu e s ti on o f f i r s t i m p r e ss i on a s t o w h e t h e r it i s a ss i gn a b l e .
T h e e l d e r e xp l o it a ti on s t a t u t e ' s p l a i n l a ngu a g e c l ea r l y p r ov i d e s t h a t on l y t h e o l d e r p e r s on ca n b r i ng t h e c l a i m . S ee B e a z e r H o m e s N ev ., I n c . v . E i gh t h J ud i c i a l D i s t . C ou r t , 120 N e v . 575 , 579 - 80 , 97 P . 3d 1132 , 1135 ( 2004 ) ( e xp l a i n i ng t h a t t h i s c ou r t " w ill no t go b e yond t h e l a ngu a g e o f [ a ] s t a t u t e w h e r e " t h e p l a i n m ea n i ng o f [ t h e ] s t a t u t e i s c l ea r on it s f ace ) . I nd ee d , N R S 41 . 1395 ( 1 ) p r ov i d e s t h a t " i f a n o l d e r p e r s on . . . s u ff e r s a l o ss o f m on e y o r p r op e r t y ca u s e d by e xp l o it a ti on , t h e p e r s on w ho ca u s e d t h e . . . l o ss i s li a b l e t o t h e o l d e r p e rs on . " ( E m ph a s i s a dd e d . ) A nd w h il e N RC P 17 ( a ) p e r m it s a p a r t y t o " s u e i n t h e i r o w n n a m e s w it hou t j o i n i ng t h e p e r s on f o r w ho s e b e n e f it t h e ac ti on i s b r ough e und e r ce r t a i n c i r c u m s t a n ce s , non e o f t ho s e c i r c u m s t a n ce s e x i s t h e r e . R e s pond e n t s n e it h e r c l a i m t o b e a ny o f t h e p a r ti e s e n titl e d t o b r i ng c l a i m s w it hou t n a m i ng a pp e ll a n t s a s t h e r ea l p a r ti e s i n i n t e r e s t , s ee N RC P 17 ( a )( 1 )( A )-( F ) ( li s ti ng p a r ti e s , s u c h a s gu a r d i a n s a nd t r u s t ee s , t h a t ca n b r i ng c l a i m s i n t h e i r o w n n a m e w it hou t j o i n i ng t h e r ea l p a r t y i n i n t e r e s t ) , no r do e s t h e e l d e r e xp l o it a ti on s t a t u t e a ll o w a p a r t y o t h e r t h a n t h e a ff ec t e d o l d e r p e r s o n t o b r i n g a c l a i m f o r d a m a g e s , s ee N RC P 1 7 ( a ) ( 1 )( G ) ( p e r m it ti ng a p a r t y a u t ho r i z e d b y s t a t u t e t o m a i n t a i n a ca u s e o f ac ti on w it hou t j o i n i ng t h e i n j u r e d p a r t y ) ; N R S
9 *10 41 . 1395 ( 1 ) ( p r ov i d i n g t h a t t h e li a b ili t y f o r a n e l d er e x p l o i t a t i o n c l a i m li e s t o t h e o l d er p er s o n w i t h n o l a n g u ag e p er m i tt i n g a n o t h er p a r t y t o m a i n t a i n s u c h a c l a i m o n t h e e l d er p er s o n ' s b e h a l f) . 2
H ere , p er m i tt i n g re s p o nd e n t s t o pu rc h a s e a pp e ll a n t s f r a ud a nd e l d er e x p l o i t a t i o n c l a i m s i m p li c a t e s t h e s a m e p o li c y c o n cer n s a dd re ss e d i n M a x w e ll a nd A c h r e m : i t s t r i p s a pp e ll a n t s o f t h e i r r i g h t t o pu r s u e t h e i r p er s o n a l i n j u r y c l a i m s b y e ss e n t i a ll y " p l a c [ i nd t h e r i g h t t o a pp e a l o n a n a u c t i o n b l o c k . " R M A V e n t u r e s C a l . v . Sun A m e r i c a L if e I n s . C o ., 576 F . 3 d 1070 , 1077 ( 10 t h C i r . 2009 ) ( L u cer o , J ., c o n c u rr i n g ) . 3 S ee a l s o V ill anu ev a v . F i rs t A m . T i t l e I n s . C o ., 740 S . E . 2 d 108 , 110 ( G a . 2013 ) ( n o t i n g t h a t G e o r g i a h a s c o d i f i e d t h e c o mm o n - l a w p r i n c i p l e t h a t p er s o n a l i n j u r y c l a i m s c a nn o t b e a ss i g n e d ); N . C h i . S t . R y . C o . v . A ck l ey , 49 N . E . 222 , 225 ( I ll . 1897 ) ( vo i d i n g t h e s a l e o r a ss i g n m e n t o f p er s o n a l i n j u r y c l a i m s o n pub li c p o li c y g r o und s s o t h a t p er s o n a l i n j u r y c l a i m s w o u l d n o t b ec o m e a " c o mm o d i t y o f s a l e " ); M P M e d . I n c . v . W e g m an , 213 P . 3 d 931 , 936 ( W a s h . C t . A pp . 2009 ) ( d i s a pp r ov i n g o f t h e pu rc h a s e o f a pp e a l e d c l a i m s a t a n e x ec u t i o n s a l e b ec a u s e " a ll o w i n g o n e p a r t y t o d e s t r oy t h e o pp o s i n g p a r t y ' s a pp e a l b y b ec o m i n g i t s o w n er t h r o u g h e n f o rce m e n t o f t h e v er y j ud g m e n t und er re v i e w i s f und a m e n t a ll y un j u s t " ) . H av i n g c o n c l ud e d t h a t a pp e ll a n t s ' c l a i m s f o r
2 1 n c o m p a r i s o n , NR S 41 . 085 ( 2 ) e x p li c i t l y p er m i t s a n h e i r t o m a i n t a i n a p er s o n a l c a u s e o f a c t i o n f o r w r o n g f u l d e a t h w i t h o u t b r i n g i n g i t i n t h e n a m e o f t h e d ece d e n t o r j o i n i n g t h e d ece d e n t t o t h e a c t i o n .
3 R M A V e n t u r e s a l s o i n vo l v e d a d e f e nd a n t pu rc h a s i n g a p l a i n t i ff s c l a i m s a nd t h e n m ov i n g t o d i s m i ss t h e a pp e a l re ga r d i n g t h o s e c l a i m s . 576 F . 3 d a t 1075 . T h e c o u r t u l t i m a t e l y r u l e d i n t h e d e f e nd a n t ' s f avo r b a s e d o n U t a h l a w t h a t e x p r e ss l y a ll o w s a p a r t y t o pu rc h a s e i t s o pp o n e n t ' s c l a i m s a nd d i s m i s s t h e m , bu t n o t e d i t s " d e g ree o f d i s c o m f o r t " w i t h t h e re s u l t . I d . ( c i t i n g A pp li e d M e d . T ec h s ., I n c . v . E a m e s , 44 P . 3 d 699 ( U t a h 2002 )) .
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EV ADA 10 ( [0] ) [1] [94] [7] A [40] , *11 fr a ud a nd e l d e r e xp l o it a ti on a r e p e r s on a l t o R e yno l d s , t ho s e c l a i m s a r e no t a ss i gn a b l e a nd t hu s w e r e no t s ub j ec t t o e x ec u ti on . R e s pond e n t s t h e r e f o r e d i d no t ac qu i r e t ho s e c l a i m s a t t h e s h e r i ff s s a l e , a nd a s a r e s u lt , w e d e ny r e s pond e n t s m o ti on t o s ub s tit u t e i n a s a pp e ll a n t s a nd d i s m i ss t h e s e c l a i m s . T o r t c l a i m s f o r i n j u r y t o p r op e r t y a r e g e n e r a ll y a ss i gnab l e
T h i s c ou r t a l s o h a s no t y e t c on s i d e r e d w h e t h e r a c l a i m f o r n e g li g e n t m i s r e p r e s e n t a ti on i s a ss i gn a b l e . " A d e t e r m i n a ti on o f w h e t h e r a ca u s e o f ac ti on i s a ss i gn a b l e s hou l d b e b a s e d upon a n a n a l y s i s o f t h e n a t u r e o f t h e c l a i m t o b e a ss i gn e d a nd on a n e x a m i n a ti on o f t h e pub li c po li c y c on s i d e r a ti on s t h a t w ou l d b e i m p li ca t e d i f a ss i gn m e n t w e r e p e r m itt e d . " 6 A C . J . S . A ss i gn m e n t s § 42 ( 2016 ) (r ec ogn i z i ng t h a t , a s i d e fr o m c l a i m s t o r ec ov e r p e r s on a l d a m a g e s o r c l a i m s i nvo l v i ng p e r s on a l o r c on f i d e n ti a l r e l a ti on s h i p s , c l a i m s a r e g e n e r a ll y , bu t no t a l w a y s , a ss i gn a b l e ) ; s ee a l s o C h r i s t i s on v . J on e s , 405 N . E . 2d 8 , 10 (I ll . A pp . C t . 1980 ) ( e x a m i n i ng " t h e n a t u r e o f t h e ca u s e o f ac ti on . . . a nd . . . pub li c po li c y c on s i d e r a ti on s " a s p a r t o f it s a n a l y s i s t o d e t e r m i n e w h e t h e r ce r t a i n c l a i m s a r e a ss i gn a b l e ) , s up e rs e d e d b y s t a t u t e on d iff e r e n t g r ound s a s s t a t e d i n H o t h v . S t og s d ill , 569 N . E . 2d 34 , 38 (I l l . A pp . C t . 1991 ) ; W e bb , 174 P . 3d a t 278 ( p r ov i d i ng t h a t , " a b s e n t l e g i s l a ti v e d i r ec ti on , pub li c po li c y c on s i d e r a ti on s s hou l d " b e w e i gh e d w h e n c on s i d e r i ng w h e t h e r a c l a i m i s a ss i gn a b l e ) .
I n B ill S t r e mm e l M o t o rs , I n c . v . F i rs t N a ti ona l B an k o f N ev ada , 94 N e v . 131 , 134 , 575 P . 2d 938 , 940 ( 1978 ) , t h i s c ou r t a dop t e d s ec t i on 552 o f t h e S ec ond R e s t a t e m e n t o f T o r t s a nd li m it e d c l a i m s f o r n e g li g e n t m i s r e p r e s e n t a ti on t o on l y t ho s e c l a i m s r e s u lti ng i n p ec un i a r y l o ss . S e e R e s t a t e m e n t ( S ec ond ) o f T o r t s § 552 ( A m . L a w I n s t . 1977 ) ; s ee a l s o G ood r i c h & P e nn i ng t on M o r t g . F un d , I n c . v . J . R . W o o l a r d , I n c ., 1 20 N e v . 7 7 7 , 7 82 , 1 01 P . 3 d 79 2 , 79 5 - 96 ( 20 04 ) ( li m it i ng d a m a g e s f o r n e g li g e n t m i s r e p r e s e n t a t i on t o t h e " ou t - o f- po c k e t d a m a g e s " s u ff e r e d ) . I n s o do i ng ,
11 *12 Nevada rejected the "somewhat broader liability" that other jurisdictions recognize that allows negligent misrepresentation claims to proceed when the alleged damage is the risk of physical harm rather than pecuniary loss. See id.; Restatement (Second) of Torts § 311 cmt. a (Am. Law Inst. 1965) (recognizing the contrast between jurisdictions that allow negligent misrepresentation claims for risk of physical harm and those that only allow such claims for pecuniary loss). Under this more limited approach, Nevada law only recognizes negligent misrepresentation claims in the context of business transactions. Barmettler v. Reno Air, Inc., 114 Nev. 441, 449, 956 P.2d 1382, 1387 (1998) (stating that negligent misrepresentation "only applies to business transactions"). Given that negligent misrepresentation claims in Nevada only arise out of pecuniary loss, it is clear that the nature of such a claim is not to recover for a personal injury, but instead is more akin to a claim seeking recovery for a loss of property. Cf. Stalk v. Mushkin, 125 Nev. 21, 26-27, 199 P.3d 838, 841-42 (2009) (acknowledging a difference between torts that cause injury to property and torts that cause injury to a person). Claims alleging damages to property, rather than personal damages, are generally assignable. See, e.g., TMJ Haw., Inc. v. Nippon Tr. Bank, 153 P.3d 444, 452 (Haw. 2007) (recognizing that property tort claims, "i.e., those that arise out of an injury to the claimant's property or estate," are generally assignable); Grernminger v. Mo. Labor & Indus. Relations Comm'n, 129 S.W.3d 399, 403 (Mo. Ct. App. 2004) (stating that Missouri allows the assignment of tort claims, including misrepresentation claims, when an estate "has been injured, diminished or damage& (quoting State ex rel. Park Nat'l Bank v. Globe Indem. Co., 61 S.W.2d 733, 736 (Mo. 1933))); 6A C.J.S. Assignments § 50 (2016) (explaining that rights of action in tort involving damage to property are generally assignable).
SUPREME COURT OF NEVADA 12
101 1947A
*13 Additionally, because a claim for negligent misrepresentation in Nevada can only be based on pecuniary loss, assigning such claims does not implicate the same public policy concerns this court observed in Prosky, 32 Nev. at 445, 109 P. at 794, and Maxwell, 102 Nev. at 506-07, 728 P.2d at 815, because they do not include "non-economic losses such as physical pain and mental anguish." Maxwell, 102 Nev. at 507, 728 P.2d at 815. As the losses for a negligent misrepresentation claim are limited to purely monetary losses, assigning appellants rights to their negligent misrepresentation claim is more akin to the assignment of proceeds from a personal injury tort than to the assignment of the claim itself. See Achrem, 112 Nev. at 739-41, 917 P.2d at 448-49 (noting with approval that some jurisdictions allow assignment of the proceeds of a tort action where the assignor retains control of the action).
Based on the foregoing, we hold that while claims for personal injury torts are not assignable, when a tort claim alleges purely pecuniary loss, as is the case with appellants' negligent misrepresentation claim, the claim may be assigned. And, because the claim may be assigned, it is subject to execution in satisfaction of a judgment. Compare Gallegos, 127 Nev. at 582, 255 P.3d at 1289 (allowing assignment and execution of contract-based rights of action), with Chaffee, 98 Nev. at 223-24, 645 P.2d at 966 (disallowing execution on a claim for legal malpractice because it was not assignable). Other jurisdictions have come to similar conclusions and allowed the assignment of tort claims affecting property while prohibiting the assignment of personal injury tort claims. See, e.g., St. Luke's Magic Valley Reg? Med. Ctr. v. Luciani, 293 P.3d 661, 665 (Idaho 2013) (explaining that personal injury torts are generally not assignable, but distinguishing tort claims that result in property damage); Scottsdale Ins. Co. v. Addison
13 *14 I n s . C o ., 448 S . W . 3d 818 , 829 ( M o . 2014 ) ( e xp l a i n i ng t h a t ca u s e s o f ac ti on f o r t o r t s t h a t ca u s e i n j u r y t o p r op e r t y a r e a ss i gn a b l e , bu t p e r s on a l i n j u r y t o r t s a r e no t ) . B eca u s e a pp e ll a n t s c l a i m f o r n e g li g e n t m i s r e p r e s e n t a ti on i s a p r op e r t y t o r t , w e c on c l ud e t h a t t h i s c l a i m w a s p r op e r l y a ss i gn e d t o r e s pond e n t s a t t h e s h e r i ff s e x ec u ti on s a l e . R e s pond e n t s ' m o ti on t o s ub s tit u t e i n p l ace o f a pp e ll a n t s a nd t o d i s m i ss t h i s a pp ea l a s t o t h e n e g li g e n t m i s r e p r e s e n t a ti on c l a i m i s t h e r e f o r e g r a n t e d . C on t r a c t - ba s e d c l a i m s a r e g e n e r a ll y a ss i gnab l e
A pp e ll a n t s ' f i n a l c l a i m i s f o r b r eac h o f c on t r ac t . U nd e r N e v a d a l a w , c on t r ac t - b a s e d c l a i m s i n ac ti on a r e g e n e r a ll y a ss i gn a b l e a nd t hu s " s ub j ec t t o e x e c u ti on i n s a ti s f ac ti on o f a j udg m e n t , " un l e ss p e r s on a l i n n a t u r e . G a ll e go s , 127 N e v . a t 582 , 255 P . 3d a t 1289 ; s ee a l s o 6 A m . J u r . 2d A ss i gn m e n t s § 15 ( 2018 ) ( e xp l a i n i ng t h e g e n e r a l r u l e t h a t " un l e ss a n a ss i gn m e n t w ou l d a dd t o o r m a t e r i a ll y a lt e r t h e ob li go r ' s du t y o f r i s k , " t h e c on t r ac t it s e l f r e s t r i c t s a ss i gn a b ilit y , o r t h e a ss i gn m e n t w ou l d v i o l a t e a s t a t u t e , " m o s t r i gh t s und e r c on t r ac t s a r e fr ee l y a ss i gn a b l e ) . B u t s ee HD Supp l y F a c iliti e s M a i n t ., L t d . v . B y m o e n , 125 N e v . 200 , 204 - 05 , 210 P . 3d 183 , 185 - 86 ( 2009 ) ( p r ov i d i ng a n e x ce p ti on t o t h e g e n e r a l r i f l e t h a t b r eac h o f c on t r ac t c l a i m s a r e g e n e r a ll y a ss i gn a b l e f o r p e r s on a l s e r v i ce c on t r ac t s ) ; T r a ffi c C on t r o l S e r v s ., I n c . v . U n it e d R e n t a l s Nw ., I n c ., 120 N e v . 168 , 176 , 87 P . 3d 1054 , 1060 ( 2004 ) ( ob s e r v i ng t h a t non c o m p e t e a g r ee m e n t s a r e " p e r s on a l i n n a t u r e a nd t h e r e f o r e a r e no t a ss i gn a b l e a b s e n t t h e e m p l oy ee s e xp r e ss c on s e n t ) . A pp e ll a n t s p r e s e n t no a r gu i n e n t t o d e p a r t fr o m t h i s g e n e r a l r u l e , a nd w e f i nd no r ea s on t o do s o a s t h e c on t r ac t a t i ss u e i s no t a p e r s on a l s e r v i ce c on t r ac t . T h e r e f o r e , r e s pond e n t s ' m o ti on t o s ub s tit u t e t h e m s e l v e s f o r a pp e l l a n t s a n d t o d i s m i s s t h i s a pp ea l a s t o a pp e l l a n t s ' b r eac h - o f- c on t r ac t c l a i m i s g r a n t e d .
14
CONCLUSION
*15 Because appellants claims for fraud and elder exploitation are personal in nature, they are not assignable and thus were not subject to execution at the sheriff s sale. Therefore, respondents did not acquire these claims at the execution sale, and we deny their motion to substitute themselves for appellants and to dismiss this appeal as to the fraud and elder exploitation claims. Having further concluded that appellants' claims for negligent misrepresentation and breach of contract are assignable and subject to execution, we grant respondents' motion to substitute themselves for appellants as to those claims and to voluntarily dismiss this appeal as to those claims. Accordingly, we reinstate briefing solely as to the summary judgment on appellants' claims for fraud and elder exploitation. Respondents shall have 30 days from the date of this opinion to file and serve the answering brief.4 Thereafter, briefing shall proceed in accordance with NRAP 31(a)(1).
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J.
Hardesty Stiglich [4] To the extent appellants' opening brief addresses their claims for negligent misrepresentation and breach of contract, respondents need not respond to those arguments, as we will not address them in resolving this appeal.
SUPREME COURT OP NEVADA 15 (0) I447A ADP