Does the alter ego doctrine apply to limited liability companies (LLC)?

Does the alter ego doctrine apply to limited liability companies (LLC)?

Gardner vs. Dist. Ct. (Henderson Water Park, LLC) (Nev. Supreme Ct. – Nov. 22, 2017)

In this proceeding, the Supreme Court of Nevada considered whether seven managers of a limited liability company (LLC) were subject to suit for personal negligence as individual tortfeasors or under an alter ego theory of liability.

The Gardners, on behalf of their child L.G. (the Gardners), filed suit after L.G. suffered injuries resulting from a near-drowning at Cowabunga Bay Water Park in Henderson. The Gardners brought suit for negligence against Henderson Water Park, LLC, which does business as Cowabunga Bay Water Park (the Water Park), and its two managing members, West Coast Water Parks, LLC, and Double Ott Water Holdings, LLC (the member-LLCs). In turn, Orluff Opheikens, Slade Opheikens, Chet Opheikens, Shane Huish, Scott Huish, Craig Huish, and Tom Welch (the Managers) have an ownership interest in, or manage, the member-LLCs, and they also served on a management committee governing the Water Park.

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Nevada Appellate Courts Advance Opinions for November 22, 2017

Nevada Appellate Courts Advance Opinions for November 22, 2017

BRADLEY VS. DIST. CT. (HUDSON)

  • Does NRS 49.209’s privilege between a psychologist and patient apply when a criminal defendant seeks records related to a patient who is court-ordered to partake in therapy.

NATIONSTAR MORTG., LLC VS. SATICOY BAY LLC SERIES 2227 SHADOW CANYON

  • Is commercial reasonableness a relevant inquiry in an HOA foreclosure sale of real property.

YU VS. YU

  • When can a post-judgment vexatious litigant determination be challenged on appeal.

GARDNER VS. DIST. CT. (HENDERSON WATER PARK, LLC)

  • Does the alter ego doctrine apply to limited liability companies.

COLLINS (LESEAN) VS. STATE

  • Were a defendant’s constitutional rights violated on the first day of trial when the district court barred him from the courtroom for disruptive conduct for a two-hour period, during which it excused individual jurors for hardship, statutory ineligibility, and language barrier reasons.
  • Can a witness offer an opinion as to a defendant’s guilt.
  • When is a defendant entitled to a jury instruction on a lesser-included offense of voluntary manslaughter.

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To what extent is a member of an LLC protected in a negligence claim against the LLC?

LLC protection

Gardner vs. Henderson Water Park, LLC (Nev. Supreme Ct. – Aug. 3, 2017)

The issue is to what extent is a member of a limited liability company (LLC) protected in a negligence-based tort action against the LLC.

After their son, L.G., suffered severe injuries in a near drowning in the wave pool at Cowabunga Bay, the Gardners brought suit against Henderson Water Park, LLC, which does business as Cowabunga Bay Water Park (the Water Park), and its two managing members, West Coast Water Parks, LLC, and Double Ott Water Holdings, LLC (the member-LLCs). Among other allegations, the Gardners alleged that the negligence of the Water Park and member- LLCs contributed to L.G.’s injuries because of the Water Park’s inadequate staffing of lifeguards.

The member-LLCs eventually moved for summary judgment, which the district court granted. Specifically, the district court dismissed the member-LLCs as improper parties pursuant to NRS 86.381. The district court certified its order as final under NRCP 54(b), and the Gardners appealed.

On appeal, the Gardners argued the district court erred in concluding that NRS 86.371 and NRS 86.381 shield the member-LLCs from suit because the Gardners sought to pursue a direct claim against the member-LLCs for the member-LLCs’ own tortious conduct in negligently operating the Water Park.

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Nevada Appellate Courts Advance Opinions for August 3, 2017

Nevada Appellate Courts Advance Opinions for August 3, 2017

CITY OF SPARKS VS. RENO NEWSPAPERS, INC.

  • Did the respondent properly seek the disclosure of public records by means of a writ of mandamus even though the regulation at issue and Nevada Administrative Procedure Act, NRS Chapter 233B, provide that the validity of a regulation may be determined in a proceeding for a declaratory judgment?
  • Does NAC 453A.714(1), which governs the confidentiality of information concerning persons who facilitate or deliver medical marijuana services, exempt such information from disclosure under the Nevada Public Records Act, NRS Chapter 239, when the information is contained in medical marijuana establishment business licenses?

LN MGMT. LLC SER. 5105 PORTRAITS PLACE VS. GREEN TREE LOAN SERV., LLC

  • What is the effect of a sale of real property situated in Nevada in violation of an automatic stay from the homeowners’ bankruptcy proceedings commenced in Texas?

GARDNER VS. HENDERSON WATER PARK, LLC

  • To what extent is a member of a limited liability company (LLC) protected in a negligence based tort action against the LLC?

RURAL TELEPHONE CO. VS. PUB. UTIL. COMM’N. OF NEV.

  • Under NRS 703.373(6) or any inherent authority, can the district court extend the deadline for filing the opening brief in a petition for judicial review of a public utilities commission decision?