Senate Bill No. 492–Committee on Judiciary

(On Behalf of Administrative Office of the Courts)

March 19, 1999

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Referred to Committee on Judiciary

 

SUMMARY—Authorizes supreme court to adopt rules concerning offers of judgments. (BDR 2-851)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to civil practice; authorizing the supreme court to adopt rules to govern written offers of judgments; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 17.115 is hereby amended to read as follows:

1-2 17.115 1. [At any time more than 10 days before trial, either

1-3 informally or at any pretrial conference presided over by a judge of the

1-4 court in which the action is pending,] The supreme court may adopt rules

1-5 governing the manner in which any party may serve an offer in writing to

1-6 allow judgment to be taken in accordance with the terms and conditions

1-7 stated [at that time.

1-8 2. If the offer is accepted, the judge of the court in which the action is

1-9 pending shall enter judgment accordingly.

1-10 3. If the offer is not accepted before trial or within 10 days after it is

1-11 made, whichever occurs first, it shall be deemed withdrawn, and cannot be

1-12 given in evidence upon the trial.

1-13 4. If] in the offer.

1-14 2. The rules of the supreme court must provide that a party who

1-15 makes an offer of judgment may receive interest on the judgment, costs

1-16 and attorney’s fees if the party to whom the offer of judgment is made

1-17 [fails] :

2-1 (a) Rejects the offer of judgment; and

2-2 (b) Fails to obtain a more favorable judgment . [, he cannot recover:

2-3 (a) Interest on the judgment for the period between the time of service of

2-4 the summons and complaint and the time of entry of the judgment; or

2-5 (b) Costs or attorney’s fees,

2-6 and the court shall order him to pay to the party who made the offer that

2-7 party’s taxable costs incurred from the date of filing the complaint, and

2-8 may order also a reasonable sum to cover costs of the services of expert

2-9 witnesses who are not regular employees of any party actually incurred and

2-10 reasonably necessary in the preparation of the case for trial by the

2-11 prevailing party, interest on the judgment from the time of the offer to the

2-12 time of entry of the judgment and reasonable attorney’s fees incurred by the

2-13 party making the offer from the time of the offer.

2-14 5. Any taxable costs, attorney’s fees and interest which is not derived

2-15 from an interest-bearing obligation which may have been awarded must not

2-16 be considered to be part of the judgment when determining whether the

2-17 judgment was more favorable than the rejected offer.

2-18 6. If the attorney of the party for whom the offer of judgment is made

2-19 is collecting a contingent fee for his services, the amount of any attorney’s

2-20 fees awarded to the party for whom the offer is made must be deducted

2-21 from that contingent fee.

2-22 7. Any judgment entered pursuant to this section shall be deemed a

2-23 compromise settlement.]

2-24 Sec. 2. NRS 92A.500 is hereby amended to read as follows:

2-25 92A.500 1. The court in a proceeding to determine fair value shall

2-26 determine all of the costs of the proceeding, including the reasonable

2-27 compensation and expenses of any appraisers appointed by the court. The

2-28 court shall assess the costs against the subject corporation, except that the

2-29 court may assess costs against all or some of the dissenters, in amounts the

2-30 court finds equitable, to the extent the court finds the dissenters acted

2-31 arbitrarily, vexatiously or not in good faith in demanding payment.

2-32 2. The court may also assess the fees and expenses of the counsel and

2-33 experts for the respective parties, in amounts the court finds equitable:

2-34 (a) Against the subject corporation and in favor of all dissenters if the

2-35 court finds the subject corporation did not substantially comply with the

2-36 requirements of NRS 92A.300 to 92A.500, inclusive; or

2-37 (b) Against either the subject corporation or a dissenter in favor of any

2-38 other party, if the court finds that the party against whom the fees and

2-39 expenses are assessed acted arbitrarily, vexatiously or not in good faith

2-40 with respect to the rights provided by NRS 92A.300 to 92A.500, inclusive.

2-41 3. If the court finds that the services of counsel for any dissenter were

2-42 of substantial benefit to other dissenters similarly situated, and that the fees

2-43 for those services should not be assessed against the subject corporation,

3-1 the court may award to those counsel reasonable fees to be paid out of the

3-2 amounts awarded to the dissenters who were benefited.

3-3 4. In a proceeding commenced pursuant to NRS 92A.460, the court

3-4 may assess the costs against the subject corporation, except that the court

3-5 may assess costs against all or some of the dissenters who are parties to the

3-6 proceeding, in amounts the court finds equitable, to the extent the court

3-7 finds that such parties did not act in good faith in instituting the proceeding.

3-8 5. This section does not preclude any party in a proceeding

3-9 commenced pursuant to NRS 92A.460 or 92A.490 from applying the

3-10 provisions of N.R.C.P. 68 [or] and the rules adopted pursuant to NRS

3-11 17.115.

3-12 Sec. 3. This act becomes effective upon passage and approval.

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