The Nevada Supreme Court received certified questions from the Ninth Circuit Court of Appeals under Rule 5 of the Nevada Rules of Appellate Procedure. The questions that the Ninth Circuit certified to the Nevada Supreme Court were: (1) whether the Nevada Supreme Court’s holding in City of Fernley v. State, Department of Taxation exempts declaratory relief actions from statutes of limitations; and if not, (2) which period of limitation would apply to a claim brought by a lienholder seeking a declaratory judgment that the lien was not extinguished by a subsequent foreclosure on the property, and (3) what triggers the running of the limitations period for such a claim? The Nevada Supreme Court held that its previous holding in City of Fernley did not categorically exempt declaratory relief actions from statutes of limitations periods. Next, the Court held that an action brought to determine the validity of a lien under NRS 40.010 was subject to the four-year catch-all statute of limitations under NRS 11.220. Finally, the Court held that a foreclosure sale does not necessarily trigger the four-year statute of limitations in such an action but rather begins to run when the titleholder affirmatively repudiates the lien.
Strauss, Kim, "U.S. Bank, N.A. v. Thunder Properties, Inc., 138 Nev. Adv. Op. 3 (Feb. 3, 2022)" (2022). Nevada Supreme Court Summaries. 1529.