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Frederic & Barbara Rosenberg Living Trust v. MacDonald Highlands Realty, LLC

Citation: 427 P.3d 104Docket: No. 69399; No. 70478

Court: Nevada Supreme Court; September 13, 2018; Nevada; State Supreme Court

Narrative Opinion Summary

In this case, a trust sought to enforce an implied restrictive covenant on a parcel of land adjacent to a golf course, challenging the actions of a developer, a realty company, and an individual property owner. The primary legal issue involved the recognition of implied restrictive covenants under Nevada law. The district court granted summary judgment to the defendants, ruling that Nevada law does not recognize such covenants without explicit evidence of intent by the grantor. Additionally, the court addressed claims of misrepresentation during the real estate transaction, finding that the trust waived its common law claims by accepting the property 'as-is' but retained statutory claims under NRS Chapter 645. The appellate court affirmed parts of the district court's decision but reversed the award of attorney fees to the defendants, determining that the trust's claims were not frivolous. The case was remanded for further proceedings regarding the statutory claims and the improper award of attorney fees. The outcome highlights the stringent requirements for establishing implied restrictive covenants and the limitations on waiving statutory claims in real estate transactions under Nevada law.

Legal Issues Addressed

Award of Attorney Fees under NRS 18.010(2)(b)

Application: The district court's award of attorney fees to Malek was reversed as it was deemed an abuse of discretion, given the Trust's claims were not frivolous or unreasonable.

Reasoning: The appellate review confirmed that the district court's characterization of the claims as frivolous was indeed an abuse of discretion, as a claim is deemed frivolous only when there is no credible evidence to support it.

Implied Restrictive Covenants under Nevada Law

Application: The court declined to recognize an implied restrictive covenant on the out-of-bounds parcel, as Nevada law does not support such covenants without clear evidence of intent from the grantor.

Reasoning: The appellate court examined whether Nevada law recognizes an implied restrictive covenant, determining that it does not.

Statutory Claims under NRS 645.252

Application: The court found that the Trust's statutory claims related to real estate broker violations were not waived, leading to a reversal of the district court's summary judgment on these claims.

Reasoning: However, the Trust did not waive its statutory claims related to real estate broker violations under NRS 645.252, which mandates that a real estate agent disclose material facts.

Summary Judgment Standards

Application: Summary judgment was properly granted on the Trust's claim for an implied restrictive covenant as there were no genuine disputes over material facts under Nevada law.

Reasoning: The court emphasized that without clear evidence of intent from the grantor, an implied restrictive covenant cannot be established.

Waiver of Claims under Real Estate Purchase Agreements

Application: The Trust waived its common law claims by accepting the property 'as-is,' though it did not waive statutory claims under NRS Chapter 645 related to real estate broker violations.

Reasoning: The Trust waived its common law claims against the MacDonald parties by accepting the property 'as-is,' as the court found that the Trust knowingly and voluntarily relinquished these claims.