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2 | 2 | | |
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3 | 3 | | A.B. 3 |
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4 | 4 | | |
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5 | 5 | | - *AB3* |
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6 | 6 | | |
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7 | 7 | | ASSEMBLY BILL NO. 3–COMMITTEE ON JUDICIARY |
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8 | 8 | | |
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9 | 9 | | (ON BEHALF OF THE NEVADA SUPREME COURT) |
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10 | 10 | | |
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11 | 11 | | PREFILED SEPTEMBER 27, 2024 |
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12 | 12 | | ____________ |
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13 | 13 | | |
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14 | 14 | | Referred to Committee on Judiciary |
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15 | 15 | | |
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16 | 16 | | SUMMARY—Increases the monetary threshold for mandatory |
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17 | 17 | | nonbinding arbitration in civil actions. (BDR 3-472) |
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18 | 18 | | |
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19 | 19 | | FISCAL NOTE: Effect on Local Government: No. |
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20 | 20 | | Effect on the State: No. |
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21 | 21 | | |
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22 | 22 | | ~ |
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23 | 23 | | |
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24 | 24 | | EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. |
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25 | 25 | | |
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26 | 26 | | |
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27 | 27 | | AN ACT relating to civil actions; increasing the monetary threshold |
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28 | 28 | | for mandatory nonbinding arbitration in civil actions; and |
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29 | 29 | | providing other matters properly relating thereto. |
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30 | 30 | | Legislative Counsel’s Digest: |
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31 | 31 | | Existing law requires, with certain exceptions, civil actions for damages that do 1 |
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32 | 32 | | not exceed $50,000 per plaintiff to be submitted to nonbinding arbitration. (NRS 2 |
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33 | 33 | | 38.250, 38.255) Section 1 of this bill increases the monetary threshold for 3 |
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34 | 34 | | mandatory nonbinding arbitration in civil actions to $100,000 per plaintiff. Section 4 |
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35 | 35 | | 2 of this bill makes a conforming change to reflect that the monetary threshold 5 |
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36 | 36 | | for mandatory nonbinding arbitration is increased to $100,000 per plaintiff by 6 |
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37 | 37 | | section 1. 7 |
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38 | 38 | | |
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39 | 39 | | |
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40 | 40 | | THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN |
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41 | 41 | | SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: |
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42 | 42 | | |
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43 | 43 | | Section 1. NRS 38.250 is hereby amended to read as follows: 1 |
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44 | 44 | | 38.250 1. Except as otherwise provided in NRS 38.310: 2 |
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45 | 45 | | (a) All civil actions filed in district court for damages, if the 3 |
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46 | 46 | | cause of action arises in the State of Nevada and the amount in issue 4 |
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47 | 47 | | does not exceed [$50,000] $100,000 per plaintiff, exclusive of 5 |
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48 | 48 | | attorney’s fees, interest and court costs, must be submitted to 6 |
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49 | 49 | | nonbinding arbitration in accordance with the provisions of NRS 7 |
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50 | 50 | | 38.250 to 38.259, inclusive, unless the parties have agreed or are 8 |
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51 | 51 | | otherwise required to submit the action to an alternative method of 9 |
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52 | 52 | | – 2 – |
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53 | 53 | | |
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54 | 54 | | |
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55 | 55 | | - *AB3* |
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56 | 56 | | resolving disputes established by the Supreme Court pursuant to 1 |
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57 | 57 | | NRS 38.258, including, without limitation, a settlement conference, 2 |
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58 | 58 | | mediation or a short trial. 3 |
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59 | 59 | | (b) A civil action for damages filed in justice court may be 4 |
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60 | 60 | | submitted to binding arbitration or to an alternative method of 5 |
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61 | 61 | | resolving disputes, including, without limitation, a settlement 6 |
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62 | 62 | | conference or mediation, if the parties agree to the submission. 7 |
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63 | 63 | | 2. An agreement entered into pursuant to this section must be: 8 |
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64 | 64 | | (a) Entered into at the time of the dispute and not be a part of 9 |
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65 | 65 | | any previous agreement between the parties; 10 |
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66 | 66 | | (b) In writing; and 11 |
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67 | 67 | | (c) Entered into knowingly and voluntarily. 12 |
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68 | 68 | | An agreement entered into pursuant to this section that does not 13 |
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69 | 69 | | comply with the requirements set forth in this subsection is void. 14 |
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70 | 70 | | 3. As used in this section, “short trial” means a trial that is 15 |
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71 | 71 | | conducted, with the consent of the parties to the action, in 16 |
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72 | 72 | | accordance with procedures designed to limit the length of the trial, 17 |
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73 | 73 | | including, without limitation, restrictions on the amount of 18 |
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74 | 74 | | discovery requested by each party, the use of a jury composed of not 19 |
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75 | 75 | | more than eight persons and a specified limit on the amount of time 20 |
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76 | 76 | | each party may use to present the party’s case. 21 |
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77 | 77 | | Sec. 2. NRS 38.255 is hereby amended to read as follows: 22 |
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78 | 78 | | 38.255 1. The rules adopted by the Supreme Court pursuant 23 |
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79 | 79 | | to NRS 38.253 to provide guidelines for the establishment by a 24 |
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80 | 80 | | district court of a program must include provisions for a: 25 |
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81 | 81 | | (a) Mandatory program for the arbitration of civil actions 26 |
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82 | 82 | | pursuant to NRS 38.250. 27 |
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83 | 83 | | (b) Voluntary program for the arbitration of civil actions if the 28 |
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84 | 84 | | cause of action arises in the State of Nevada and the amount in issue 29 |
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85 | 85 | | exceeds [$50,000] $100,000 per plaintiff, exclusive of attorney’s 30 |
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86 | 86 | | fees, interest and court costs. 31 |
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87 | 87 | | (c) Voluntary program for the use of binding arbitration in all 32 |
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88 | 88 | | civil actions. 33 |
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89 | 89 | | 2. The rules must provide that the district court of any judicial 34 |
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90 | 90 | | district whose population is 100,000 or more: 35 |
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91 | 91 | | (a) Shall establish programs pursuant to paragraphs (a), (b) and 36 |
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92 | 92 | | (c) of subsection 1. 37 |
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93 | 93 | | (b) May set fees and charge parties for arbitration if the amount 38 |
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94 | 94 | | in issue exceeds [$50,000] $100,000 per plaintiff, exclusive of 39 |
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95 | 95 | | attorney’s fees, interest and court costs. 40 |
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96 | 96 | | The rules may provide for similar programs for the other judicial 41 |
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97 | 97 | | districts. 42 |
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98 | 98 | | 3. The rules must exclude the following from any program of 43 |
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99 | 99 | | mandatory arbitration: 44 |
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100 | 100 | | – 3 – |
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101 | 101 | | |
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102 | 102 | | |
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103 | 103 | | - *AB3* |
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104 | 104 | | (a) Actions in which the amount in issue, excluding attorney’s 1 |
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105 | 105 | | fees, interest and court costs, is more than [$50,000] $100,000 or 2 |
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106 | 106 | | less than the maximum jurisdictional amounts specified in NRS 3 |
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107 | 107 | | 4.370 and 73.010; 4 |
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108 | 108 | | (b) Class actions; 5 |
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109 | 109 | | (c) Actions in equity; 6 |
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110 | 110 | | (d) Actions concerning the title to real estate; 7 |
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111 | 111 | | (e) Probate actions; 8 |
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112 | 112 | | (f) Appeals from courts of limited jurisdiction; 9 |
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113 | 113 | | (g) Actions for declaratory relief; 10 |
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114 | 114 | | (h) Actions involving divorce or problems of domestic relations; 11 |
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115 | 115 | | (i) Actions brought for relief based on any extraordinary writs; 12 |
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116 | 116 | | (j) Actions for the judicial review of an administrative decision; 13 |
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117 | 117 | | (k) Actions in which the parties, pursuant to a written agreement 14 |
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118 | 118 | | executed before the accrual of the cause of action or pursuant to 15 |
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119 | 119 | | rules adopted by the Supreme Court, have submitted the controversy 16 |
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120 | 120 | | to arbitration or any other alternative method for resolving a dispute; 17 |
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121 | 121 | | (l) Actions that present unusual circumstances that constitute 18 |
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122 | 122 | | good cause for removal from the program; 19 |
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123 | 123 | | (m) Actions in which any of the parties is incarcerated; and 20 |
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124 | 124 | | (n) Actions submitted to mediation pursuant to rules adopted by 21 |
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125 | 125 | | the Supreme Court. 22 |
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126 | 126 | | 4. The rules must include: 23 |
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127 | 127 | | (a) Provisions for the payment of fees to an arbitrator who is 24 |
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128 | 128 | | appointed to hear a case pursuant to the rules. The rules must 25 |
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129 | 129 | | provide that an arbitrator must be compensated at a rate of $100 per 26 |
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130 | 130 | | hour, to a maximum of $1,000 per case, unless otherwise authorized 27 |
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131 | 131 | | by the arbitration commissioner for good cause shown. 28 |
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132 | 132 | | (b) Guidelines for the award of attorney’s fees and maximum 29 |
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133 | 133 | | limitations on the costs to the parties of the arbitration. 30 |
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134 | 134 | | (c) Disincentives to appeal. 31 |
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135 | 135 | | (d) Provisions for trial upon the exercise by either party of the 32 |
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136 | 136 | | party’s right to a trial anew after the arbitration. 33 |
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137 | 137 | | |
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138 | 138 | | H |
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139 | 139 | | |
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140 | 140 | | |
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141 | 141 | | |
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