Opinion ID: 1211307
Heading Depth: 1
Heading Rank: 3

Heading: preliminary contentions

Text: On appeal, Durable raises two contentions which we dispose of prior to discussing the parties' claims to the disbursements made and funds held by Durable. Durable first contends that the district court erred in failing to grant Durable's motion for a judgment releasing and discharging it as the garnishee. Because the Trustees failed to file a traverse to Durable's answer to the garnishment interrogatories, Durable contends that its answer should have been deemed true and that, consequently, the lower court should have found that Durable did not owe Marchini anything at the time Durable's answer was filed. Durable's argument is without merit. It is true that a garnishor may file a reply by affidavit to a garnishee's answer, and that if the plaintiff garnishor fails to reply within the statutory period, he shall be deemed to have accepted the answer of the garnishee as true and judgment may be entered accordingly. See NRS 31.330. If Durable had answered that no funds whatever were due Marchini, and the Trustees had failed to reply, the Trustees would be bound by Durable's answer. Durable's answer, however, did not deny the existence of any debt to Marchini. As previously noted, Durable answered the interrogatory concerning possible indebtedness by stating, Sums may become due to [Marchini], but the amount, if any, after deducting assignments and offsets is unknown at this time. This answer clearly does not deny that any monies were owing to Marchini; the answer simply states that Durable was unable to determine the amount of sums owing at the time the answer was filed. In Grouse Cr. Ranches v. Budget Financial Corp., 87 Nev. 419, 488 P.2d 917 (1971), the garnishee admitted holding property which might have belonged to the debtor but stated it did not know the debtor's interest in the property. We rejected a claim that the garnishor's failure to traverse such an answer amounted to an acceptance. We distinguished between a complete denial of the existence of an obligation and an assertion that the extent of the obligation due was unknown. See 87 Nev. at 430-31, 488 P.2d at 925. Our holding in Grouse Cr. Ranches is dispositive of the issue Durable raises on appeal. Accordingly, we reject this assignment of error. Next, Durable contends that the district court erred in denying it the opportunity to present oral testimony or cross-examine witnesses at the priority hearing. Durable's argument appears to be based on the assumption that the hearing was a trial. At the time the priority hearing was held, the time for trial was past. The district court had already granted the Trustee's motion for judgment on the pleadings subject to the court's determination of the priorities of the parties. The hearing in question was actually the result of a post-trial motion. Under the local rules of the Eighth Judicial District, factual contentions involved in the resolution of post-trial motions may be presented and heard upon affidavits, depositions, answers to interrogatories, and admissions on file. See EDCR 2.21(a). Whether oral testimony will be received at such a hearing, therefore, lies within the discretion of the district court. We conclude, however, based on the record presently before us and on the complexity of the factual issues that will be remanded to the district court, as discussed infra, that oral testimony is warranted in this case. Accordingly, on remand the district court shall allow the parties to present oral testimony and to cross-examine the witnesses if they so desire.