Opinion ID: 1250100
Heading Depth: 1
Heading Rank: 5

Heading: depner's capacity to commence suit

Text: Depner brought suit on behalf of Depner Architects & Planners, Inc., P.S. After the Bank had moved to dismiss the case, based on Depner's lack of capacity, Depner moved the district court to amend his complaint and substitute himself in an individual capacity as plaintiff. The court allowed the amendment, finding that Depner transacted business in Nevada as a sole proprietorship called The Depner Association. Depner argues that the decision to substitute himself as an individual for the corporation was within the sound discretion of the trial court under NRCP 15(a). [3] The Bank claims the district court erred in finding that Depner worked on the Double Diamond Ranch project as a sole proprietorship, pointing out the following facts: (1) After Depner incorporated in Washington on December 8, 1980, all invoices were submitted to C & R on behalf of the corporation; (2) the construction drawings for the proposed project were prepared by the corporation; (3) the individuals who worked on the drawings were employees of the corporation; (4) Depner had a prior appeal in this case, which is in the name of the corporation ( Depner Architects v. Nevada Nat. Bank, 104 Nev. 560, 763 P.2d 1141 (1988)); and (5) this action was brought on behalf of the corporation, purporting that it was authorized to do business in Nevada. We agree that the district court erred in substituting Depner in an individual capacity as plaintiff. In League to Save Lake Tahoe v. Tahoe Regional Planning Agency, 93 Nev. 270, 563 P.2d 582 (1977), this court found that dismissal of suit with prejudice under NRS 80.210 was proper where the plaintiff foreign corporation was not qualified to do business in Nevada, even though the plaintiff qualified to do business in Nevada approximately nine months later. Id. at 273, 563 P.2d at 584-585. The dismissal with prejudice was upheld because the statute of limitations would have expired upon a re-filing of the suit. Id. We hold that the district court abused its discretion in allowing Depner to substitute himself as an individual for the corporate entity in this case. The evidence is clear that Depner conducted business in Nevada in the corporate name. In order to become authorized to do business in Nevada, Depner must have complied with NRS 80.010. [4] He did not. As a foreign corporation which is not in compliance with NRS 80.010, Depner Architects & Planners, Inc., P.S., is barred from commencing or maintaining a suit in Nevada courts by NRS 80.210.