Subrogation in Nevada: A Quick Guide to a Few of the Legal Quirks of the “Battle Born” State

Halloween in 1864 was a big day for the citizens of Nevada. The territory joined the Union that day, October 31, 1864, as the 36th state during the latter stages of the Civil War. Hence its moto:  “Battle Born.” Over 150 years later,  navigating the legal intricacies of the famously legally insular state remains a challenge.

Property subrogation in Nevada is no different. The first step is to make sure you have a Nevada  lawyer. Nevada has no reciprocal admission with other states, which helps explain why the state has one of the fewest number of lawyers per capita in the nation. Further, Nevada limits the number of pro hac admissions, which means that  a lawyer can make five applications within a three year period. See SCR 42.

At Bauman Loewe Witt & Maxwell, we have licensed Nevada lawyers in both State and Federal court that can appear in subrogation matters and have been handling Nevada  subrogation matters for years.

Another quirky requirement that is often overlooked in Nevada is a bond requirement.  Defendants sued in Nevada can require out-of-state plaintiffs to post a bond to cover potential costs of losing the case. Under N.R.S. § 18.130(1), all proceedings are stayed until a plaintiff posts a cost bond, otherwise the court can dismiss the case.

Finally, property subrogation cases that involve construction of residential homes are often subject to N.R.S. Chapter 40.600, et seq. This statute, however, does not apply to commercial construction. Nevada has certain prerequisites in order to maintain a construction defect action against a builder or contractor of a residential home. Subrogation claims are no exception, and Nevada courts have held that insurance carriers seeking subrogation recovery must also adhere to the mandatory steps outlined in  N.R.S. Chapter 40. These include written notice of defects, a 90-day window to allow the builder to inspect and offer to repair the issues, and if declined, a mandatory pre-litigation mediation.

Property subrogation in Nevada is a challenge. Ultimately, insurance carriers should act quickly to retain qualified Nevada lawyers who know how to navigate the “legal quirks” of Nevada law.

If you have any questions about subrogation recovery in Nevada, please contact Paul Landis at 480.502.4664 Ext. 4225 or e-mail at plandis@blwmlawfirm.com,  or Lubko Jeans-Berezowsky at 480.502.4664 Ext. 4216 or e-mail at lberezowsky@blwmlawfirm.com.