N. Nev. Homes, LLC v. GL Constr., Inc.
N. Nev. Homes, LLC v. GL Constr., Inc.
Opinion of the Court
In this appeal, we consider a district court's award of attorney fees and costs to defendant GL Construction, Inc. (GL) on its counterclaim against plaintiff Northern Nevada Homes, LLC (NNH). The question presented is whether the district court properly determined GL to be the "prevailing party" following bifurcated trials, in which the parties settled as to damages on NNH's claims in an amount that exceeds GL's damages judgment on its counterclaim. We conclude that the district court did not abuse its discretion with regard to the award of attorney fees and costs for two reasons. First, we note that no statute or court rule requires the trial court to offset a damages judgment on one party's counterclaim by the amount recovered by another party in settling its claim to determine which side is the prevailing party. Second, we conclude that the most *1236reasonable interpretation of NRS 18.010(2)(a) and 18.020(3) precludes the use of settlement recovery for this purpose.
FACTS AND PROCEDURAL HISTORY
NNH and Cerberus Holdings, LLC, filed a complaint against Gordon Lemich and his company, GL.
GL then moved for $67,595 in attorney fees and $2,497.33 in costs. NNH opposed, arguing in part that GL was not the prevailing party under NRS 18.010 and 18.020 because NNH obtained a net recovery from the settlement. The district court awarded GL $10,000 in attorney fees and $390 in costs, finding that (1) GL was a prevailing party within the meaning of NRS 18.010 and 18.020 with respect to its counterclaim; (2) the settlement amount was not relevant to the prevailing party determination because the facts underlying the counterclaim were largely unrelated to NNH's claim; and (3) $10,000 was a reasonable amount for attorney fees
DISCUSSION
Standard of review
"An award of attorney fees is reviewed for an abuse of discretion." MB Am., Inc. v. Alaska Pac. Leasing,
Questions of law and statutory interpretation are reviewed de novo. Albios v. Horizon Cmtys., Inc.,
Attorney fees and costs under NRS 18.010 and NRS 18.020
NNH argues that the district court abused its discretion by determining that GL was the prevailing party under NRS 18.010(2)(a) and 18.020(3), because NNH received the net monetary recovery in this case when the parties' recoveries were offset under Parodi v. Budetti,
NRS 18.010(2)(a) is the result of "[t]he legislat[ive] inten[t] ... to afford litigants in small civil suits the opportunity to be made whole." Smith,
In Parodi , this court considered whether a district court must look at the "separate and distinct claims" of parties within the same case and determine the award separately for each claim, or whether the claims should be considered "as a whole and let the total net award govern the outcome [of the prevailing party analysis] of NRS 18.010 and 18.020."
the trial court must offset all awards of monetary damages to determine which side is the prevailing party and whether or not the total net damages exceed the $20,000 threshhold [sic]. The trial court would then award costs to the prevailing party pursuant to NRS 18.020 and proceed with the discretionary analysis under NRS 18.010(2)(a) to determine if attorney's [sic] fees are warranted.
Although this court has never done so, other courts have held that parties who recover through settlement are the prevailing party within the meaning of their respective attorney fee statutes. See, e.g., DeSaulles v. Cmty. Hosp. of Monterey Peninsula,
Here, NNH provides no Nevada authority establishing that the district court should have offset the settlement recovery on NNH's claims from GL's damages award on its counterclaim to determine whether GL was the prevailing party on its counterclaim under NRS 18.010(2)(b) and 18.020(3). Because Parodi only requires the district court to consider judgments for monetary damages when determining the prevailing party for the purposes of NRS 18.010(2)(a) and 18.020(3), we conclude that the district court did not err in its refusal to aggregate NNH's settlement recovery and GL's judgment for damages under that case.
*1238To the extent that there is any ambiguity as to the method of determining the prevailing party when faced with both settlement and damages recovery, we are unpersuaded by the other courts' holdings. For one, none of the cases NNH cites employed a net monetary recovery analysis that considered a settlement recovery by one party and a damages recovery by the other party. Further, we note that, although DeSaulles reasoned that settlement money was a "recovery" within the meaning of California's attorney fees statute, the California Supreme Court did so with the intent of comporting with its "basic purpose of imposing costs on the losing party." See
CONCLUSION
There is no Nevada statute or court rule that requires the trial court to offset a judgment for damages on an independent claim by one party with a settlement recovery on the other party's claim to determine which side is the prevailing party, and the most reasonable interpretation of NRS 18.010(2)(a) and 18.020(3) precludes the use of settlement recovery for this purpose. We, therefore, conclude that the district court did not abuse its discretion by failing to aggregate the settlement recovery and damages award in this case and affirm the court's order awarding attorney fees and costs.
We concur:
Parraguirre, J.
Saitta, Sr. J.
Cerberus and NNH settled their claims against GL and Lemich, and only the attorney fee and costs award on GL's counterclaim against NNH is challenged in this appeal.
NNH claims that "the [district] court arbitrarily determined $10,000 was a reasonable amount." However, NNH fails to present cogent argument or supporting authority in this regard, and we, therefore, decline to consider this issue. See Edwards v. Emperor's Garden Rest.,
Although the Nevada Legislature amended NRS 18.010 after Smith, NRS 18.010(2)(a) is unaffected by the amendment. See 2003 Nev. Stat., ch. 508, § 153, at 3478.
Reference
- Full Case Name
- NORTHERN NEVADA HOMES, LLC, a Nevada limited liability company v. GL CONSTRUCTION, INC., a Nevada corporation
- Cited By
- 6 cases
- Status
- Published