Justia Landlord - Tenant Opinion SummariesArticles Posted in Supreme Court of Nevada
Rose, LLC v. Treasure Island, LLC
The Supreme Court affirmed the judgment of the trial court in this contract action, holding that any failure by landlords to strictly comply with any contractual notice provisions when declaring a lease in default is excused when the allegedly defaulting party receives actual notice of the default despite noncompliance. Treasure Island, LLC and its prime tenant, Rose, LLC, entered into a lease for space inside of Treasure Island's hotel/casino that was subleased to Señor Frog's and used to operate a restaurant. Treasure Island declared the lease in default when Rose failed to make timely rent payments. Thereafter, Treasure Island sued Rose alleging breach of the lease agreement and seeking declaratory relief. Rose counterclaimed, alleging breach of contract and seeking declaratory relief, arguing (1) the district court erred in declaring the lease terminated because Treasure Island failed to give proper notice of the default, and (2) the judgment was void because Señor Frog's was a necessary party and was not joined in the action in violation of Nev. R. Civ. P. 19. The trial court entered judgment for Treasure Island. The Supreme Court affirmed, holding (1) Rose suffered no prejudice because it received actual notice of the default; and (2) Señor Frog's was not a necessary party to the litigation. View "Rose, LLC v. Treasure Island, LLC" on Justia Law
Boca Park Marketplace Syndications Group, LLC v. Higco, Inc.
In this commercial dispute over an exclusive use clause in a lease for space in a shopping center, the Nevada Supreme Court held that the doctrine of claim preclusion did not prevent the tenant from suing its landlord for contract damages after having won an earlier suit against the landlord for declaratory judgment, where both suits concern the same underlying facts. The court explained that the preclusion doctrine makes an exception for declaratory judgment actions, which are designed to give parties an efficient way to obtain a judicial declaration of their legal rights before positions become entrenched and irreversible damage to relationships occurs. Furthermore, in a case involving a continuing or recurrent wrong, a party may sue separately for after-accruing damages. Accordingly, the court affirmed the judgment awarding contract damages to the tenant. View "Boca Park Marketplace Syndications Group, LLC v. Higco, Inc." on Justia Law