Title: In re Fontainebleau Las Vegas Holdings, LLC
Citation: 128 Nev. Adv. Op. No. 53
Docket Number: 
State: Nevada
Issuer: Nevada Supreme Court
Date: October 25, 2012

In re Fontainebleau Las Vegas Holdings, LLC Annotate this Case Justia Opinion Summary This case arose when debtor Fontainebleau Las Vegas Holdings, LLC filed for bankruptcy while seeking to construct and develop and $2.8 billion hotel-casino resort. The U.S. Bankruptcy Court certified questions to the Nevada Supreme Court relating to the viability of equitable subrogation and the enforceability of contractual subordination against mechanic's lien claimants under Nevada's mechanic's and materialman's lien statutes. The Supreme Court answered (1) the doctrine of equitable subrogation does not apply against mechanic's lien claimants, such that a mortgage incurred after the commencement of work on a project will not succeed to the senior priority position of a preexisting lien satisfied by the mortgagee if intervening mechanics' liens exist; and (2) contractual subordination agreements executed by mechanic's lien claimants purporting to subordinate mechanic's liens prospectively are not enforceable, but mechanic's lien claimants may waive their statutorily protected rights when the precise requirements of Nev. Rev. Stat. 108.2457 are met. Read more Want to stay in the know about new opinions from the Supreme Court of Nevada? Sign up for free summaries delivered directly to your inbox. Learn More › You already receive new opinion summaries from Supreme Court of Nevada. Did you know we offer summary newsletters for even more practice areas and jurisdictions? Explore them here . Download PDF