Archive for: June, 2015

In Nevada, the elements for a claim of breach of fiduciary duty are:

  1. A fiduciary relationship exists between two persons such that one of them is under a duty to act for or give advice for the benefit of another upon matters within the scope of that relationship;
  2. Failure of the party owing the duty to use due care or diligence, act with utmost faith, exercise ordinary skill, or act with reasonable intelligence;
  3. Plaintiff suffered losses or injuries resulting from defendants’ breach of duty; and
  4. Causation and damages.

NRS 78.138-39; Klein v. Freedom Strategic Partners, LLC, 595 F. Supp. 2d 1152, 1162 (D. Nev. 2009)  Stalk v. Mushkin, 125 Nev. 21, 199 P.3d 838 (Nev. 2009); Shoen v. SAC Holding Corp., 122 Nev. 621, 137 P.3d 1171 (Nev. 2006); Foley v. Morse & Mowbray, 109 Nev. 16 (1993); Hoopes v. Hammargren, 725 P. 2d 238 (Nev. 1986); Linland v. United Business Inv., Inc., 693 P.2d 20 (Ore. 1984); 18 Am.Jur 2d Corporations 1695, 1710, 1712-13; Restatement (Second) of Torts  § 874 Cmt. a (1979).

 

See elements for other claims at the Nevada Law Library

Jay Young is a Las Vegas business attorney, commercial litigator, arbitrator, and mediator.  He is also a Super Lawyer.  In fact, the national publication, Super Lawyers recently named Young as one of its Top 100 attorneys in its 2015 Mountain States Lawyers publication.  Additionally, the publication featured a story on Young entitled “The Gospel According to Jay.”

Super Lawyers explains its selection process as follows: (more…)

TEMPORARY RESTRAINING ORDER, PRELIMINARY INJUNCTION, AND PERMANENT INJUNCTION

In Nevada, in order to obtain a temporary restraining order, preliminary injunction, or permanent injunction, generally, the following are considered by the courts:

  1. A party must demonstrate that it has a reasonable probability of success on the merits of its underlying claims;
  2. Without injunctive relief, plaintiff will suffer irreparable harm for which compensatory damages are inadequate;
  3. The court may weigh the public’s interest in seeing the harm stopped, as well as the relative hardships of the parties should the court take or refuse to take action; and
  4. The purpose of the restraining order/injunction is to preserve the status quo, or to “preserve a business or property interest.” Buion v. Terra Mktg. of Nev., Inc., 90 Nev. 237, 240, 523 P.2d 847, 848 (1974).
  5. Imposition of a bond is required by NRCP 65(c).

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In Nevada, the elements for a tort claim of breach of the covenant of good faith and fair dealing are:

  1. Existence of a valid contract;
  2. Every contract in Nevada contains an implied covenant to act in good faith in performance and enforcement of the contract;
  3. Justifiable expectation by the plaintiff to receive certain benefits consistent with the spirit of the agreement;
  4. Defendant performed in a manner that was in violation of or unfaithful to the spirit of the contract (the terms of the contract are complied with in a literal sense, but the spirit of the contract is breached);
  5. The existence of a special relationship of trust between the plaintiff and defendant;
  6. Unfaithful actions by the defendant were deliberate;
  7. Causation and damages; and
  8. Punitive Damages.

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In Nevada, the elements for a contract claim of breach of the covenant of good faith and fair dealing are:

  1. Existence of a valid contract;
  2. Every contract in Nevada contains an implied covenant to act in good faith in performance and enforcement of the contract;
  3. Justifiable expectation by the plaintiff to receive certain benefits consistent with the spirit of the agreement;
  4. Defendant performed in a manner that was in violation of or unfaithful to the spirit of the contract (the terms of the contract are complied with in a literal sense, but the spirit of the contract is breached);
  5. Unfaithful actions by the defendant were deliberate; and
  6. Causation and damages.

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The Buy-Sell Agreement is Arguably The Most Important and Most Overlooked Business Agreement

The Buy-Sell Agreement is Arguably The Most Important and Most Overlooked Business Agreement

Buy-sell agreements can alleviate disputes that can arise between or among owners and can provide for payments to buy out an owner’s interest in the business at an owner’s death or disability without disrupting the ongoing business.   It can avoid family fights, fights between surviving owners and the deceased owner’s spouse, while maintaining the integrity of the company’s goodwill and liquidity. They are an essential part of proper corporate governance for any closely held business. If an owner is unable to continue in the business, the agreement triggers the sale of that owner’s portion of the company at a price designated in the agreement. (more…)

In Nevada, the elements for a claim of breach of an express warranty are:

  1. Existence of an express warranty (an affirmative act or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain that the goods shall conform to the affirmation or promise);
  2. Affirmation of fact or promise by the seller to the buyer which relates to the goods described and becomes part of the bargain;
  3. The goods must conform to the description by the seller; no actual reliance by the buyer is required; and
  4. Causation and damages.

NRS 104.2313; Porcell v. Lincoln Word Prod., Inc., 713 F. Supp. 2d 1305 (D. N.M. 2010); Allied Fidelity Ins. Co. v. Pico, 99 Nev. 15 (1983).

 

See elements for other claims at the Nevada Law Library

In Nevada, vicarious liability (respondeat superior) is a derivative action based on some status relationship between the accused and a primary tortfeasor, such as an employer-employee situation.

  1. A tortfeasor is employed by the defendant;
  2. The Tortfeasor was under the defendant’s control and acting in the scope of the tortfeasor’s employment at the time the tort was committed;
  3. Relationship of the parties is of superior and subordinate, where the tortfeasor is subject to the control of the defendant; and
  4. Proximate cause and damages.

N.R.S. 41.130; NRS 41.745; Wood v. Safeway, Inc., 121 Nev. 724 (2005); Kornton v. Conrad, Inc., 119 Nev. 123, 67 P.3d 316 (2003); Rockwell v. Sun Harbor Budget Suites, 112 Nev. 1217, (1996); Batt v. State, 111 Nev. 1127, 901 P.2d 664, 667n.6 (1995); Evans v. Southwest Gas, 108 Nev. 1002, 842 P.2d 719 (1992); Nat’l Convenience Stores v. Fantauzzi, 94 Nev. 655, 657, 584 P.2d 689, 691 (1978); Prell Hotel Corp. v. Antonacci, 86 Nev. 390, (1970).

 

See elements for other claims at the Nevada Law Library

In Nevada, the elements for a claim of breach of the duty of loyalty are:

  1. Defendant is a fiduciary to Plaintiff company;
  2. Defendant owed plaintiff the duty of loyalty, requiring defendant to maintain, in good faith, the corporation’s and its shareholders’ best interests over anyone else’s interests;
  3. Defendant breached the duty of loyalty; and
  4. Causation and damages.

Shoen v. SAC Holding Corp., 122 Nev. 621, 632 (Nev. 2006); White Cap Indus., Inc. v. Ruppert, 119 Nev. 126, 67 P.3d 318 (2003); Rhine v. Miller, 94 Nev. 647, 649, 583 P.2d 458 (1978).

 

See elements for other claims at the Nevada Law Library

I tried for 15 years to get my friend to do some basic Estate Planning.  I urged him, at a bare minimum, to create a will.  Better, do a full estate planning package: will, living trust, etc.  He assured me he didn’t need my help, and that he had everything “under control” without spending money on an attorney to do a Will and a Trust.  My friend died and I had to help his widow through the financial mess he left behind.  So far, his mistake has cost his widow over $100,000—and it was completely avoidable.

My friend was an extremely intelligent man and very capable in many ways.  But he did not have things “under control”.  Now, his widow will have to spend thousands of dollars in attorney fees, put his estate through probate, and lose almost 1/3 of the assets they worked so hard to accumulate.  His widow is learning through my friend’s mistakes that if you do not have an estate plan, the State will determine who gets your assets, not you.

This article gives an overview of the ways one may transfer assets upon his or her death, discussing the risks and rewards of each method in Nevada.  We will also discuss the estate planning tools that are available to you to avoid the risks associated with each transfer method. (more…)