You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

NOLM, LLC v. County of Clark

Citations: 100 P.3d 658; 120 Nev. 736; 120 Nev. Adv. Rep. 82; 2004 Nev. LEXIS 114Docket: 39508

Court: Nevada Supreme Court; November 18, 2004; Nevada; State Supreme Court

Narrative Opinion Summary

In this case, the Supreme Court of Nevada reviewed an appeal concerning the reformation of a deed between NOLM, LLC and Clark County due to a unilateral mistake in the land description. Clark County sold two parcels of land with a misrepresented total area of 0.92 acres instead of the intended 0.49 acres. The appellant, aware of the mistake, purchased the property and later faced increased taxes, leading him to seek legal recourse. The district court reformed the deed to reflect the correct acreage, a decision that was appealed by the appellant under the argument that the sale agreement was clear and the County bore the risk of the mistake. The Supreme Court upheld the reformation, noting that the appellant's awareness and silence on the mistake justified this action, aligning with the Restatement (Second) of Contracts. The court also ordered a partial refund of property taxes to the appellant, recognizing that he should not be burdened with taxes for improvements he did not benefit from. The appellant's claims of judicial estoppel and unconstitutional taking were rejected, as the court found the reformation consistent with the parties' initial intent and not contradictory to previous County positions. The decision was remanded for the tax refund, affirming the district court's reformation order.

Legal Issues Addressed

Contract Interpretation and Party Intent

Application: The court held that the reformation reflected the true intent of both parties, thus negating claims of unconstitutional taking.

Reasoning: The court ruled that the reformation reflected the true intent of both parties, thus negating Ohriner's takings claim.

Equitable Relief Despite Negligence

Application: Mere negligence by Clark County did not bar it from obtaining equitable relief through reformation as the mistake was not grossly negligent.

Reasoning: Mere negligence, including inadvertence, does not prevent a party from obtaining equitable relief from contract terms, as established in Oftedal, 40 P.3d at 359.

Judicial Estoppel and Inconsistent Positions

Application: The doctrine of judicial estoppel was deemed inapplicable as the County had not taken a contradictory position in prior proceedings.

Reasoning: Judicial estoppel, which protects judicial integrity and applies when a party's inconsistent positions arise from wrongdoing, was found inapplicable here since the County had not asserted a contradictory position in prior proceedings.

Partial Refund for Unjust Taxation

Application: The court ordered a partial refund of property taxes to Ohriner, acknowledging that he should not be taxed for improvements he did not benefit from.

Reasoning: Equity principles require the County to also 'do equity' by refunding Ohriner for the portions of tax payments corresponding to the parcels it intended to retain, given that Ohriner should not bear excessive tax burdens for improvements he did not benefit from.

Reformation of Contract Due to Unilateral Mistake

Application: The court affirmed the reformation of the deed to reflect the intended property size, despite one party's awareness of the mistake at the time of the agreement.

Reasoning: The Supreme Court affirmed the district court's decision for reformation but remanded the case for a partial refund to the non-mistaken party, emphasizing that the circumstances justified reformation despite Ohriner's prior knowledge of the mistake.