Assembly Bill No. 649

Assembly Bill No. 649-Assemblymen Collins, Von Tobel, Manendo, Chowning, Williams, Gustavson, Koivisto, Carpenter, Segerblom, Anderson, Nolan, Lee and Amodei

June 26, 1997
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Referred to Committee on Judiciary

SUMMARY--Provides for arbitration of mechanics' liens. (BDR 9-1118)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to mechanics' liens; providing for arbitration if a lien is released under bond; and providing other matters properly relating thereto.

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

Section 1 Chapter 108 of NRS is hereby amended by adding thereto a new section to read as follows:
1. If a mechanic's lien is released upon the posting of a surety bond and either party so requests, the court shall within 10 days after the request is filed assign the claim to binding arbitration and appoint an arbitrator.
2. The arbitration must be conducted in accordance with the provisions of NRS 38.075 to 38.125, inclusive. If an application to vacate, modify or correct the award is made pursuant to NRS 38.145 or 38.155, the court shall hear the application within 30 days after it is made. Unless such an application is made within 30 days after the award is filed, the court shall enter judgment in favor of the lien claimant against his debtor and the surety for the amount of the award.
Sec. 2 NRS 108.2413 is hereby amended to read as follows:
108.2413A mechanic's lien of record upon real property may be released upon the posting of a surety bond in the manner provided in NRS 108.2415 to 108.2425, inclusive [.] , and section 1 of this act.
Sec. 3 NRS 108.2421 is hereby amended to read as follows:
108.24211. [The] If arbitration of a claim is not requested, the lien claimant is entitled to bring an action against the lien claimant's debtor and to join therein the surety on the bond. A judgment for the claimant on the bond may not be made against the property. The rights of the lien claimant include and the court or an arbitrator may award to him : [in that action:]
(a) The amount found due to the lien claimant ; [by the court;]
(b) The cost of preparing and filing the lien claim, including attorney's fees, if any;
(c) The costs of the proceedings;
(d) Attorney's fees for representation of the lien claimant in the proceedings; and
(e) Interest at a rate established pursuant to NRS 99.040 from the date found by the court or arbitrator that the sum was due.
2. Proceedings pursuant to subsection 1 are entitled to priority of hearing second only to criminal hearings. The plaintiff in the action may serve upon the adverse party a "demand for 30-day setting," in the proper form, and file the demand with the clerk of the court. Upon filing, the clerk of the court shall, before the Friday after the demand is filed, vacate a case or cases in a department of the court and set the lien claimant's case for hearing, on a day or days certain, to be heard within 30 days after the filing of the "demand for 30-day setting." Only one such preferential setting need be given by the court, unless the hearing date is vacated without stipulation of counsel for the plaintiff in writing. If the hearing date is vacated without that stipulation, upon service and filing, a new preferential setting must be given.