Opinion ID: 2630877
Heading Depth: 1
Heading Rank: 5

Heading: NRS Chapter 40 versus NRCP 68 and NRS 17.115

Text: The Albioses asked for attorney fees under NRS 40.655, which applies to plaintiffs in constructional defect cases. Horizon served the Albioses with offers of judgment pursuant to NRCP 68 and NRS 17.115. We have not previously addressed whether NRS 40.655 precludes application of the penalty provisions of NRCP 68 and NRS 17.115. NRS 40.655 provides for attorney fees as damages in a constructional defect case: 1. Except as otherwise provided in NRS 40.650, in a claim governed by NRS 40.600 to 40.695, inclusive, the claimant may recover only the following damages to the extent proximately caused by a constructional defect: (a) Any reasonable attorney's fees; .... 2. The amount of any attorney's fees awarded pursuant to this section must be approved by the court. Horizon argues that its offers of judgment were more favorable than the verdict obtained by the Albioses, and therefore, NRCP 68 and NRS 17.115 preclude the Albioses from recovering attorney fees and costs under NRS 40.655. The district court, while not expressly deciding whether NRS Chapter 40 overrides NRCP 68 and NRS 17.115, apparently agreed with the Albioses' contention that NRCP 68 and NRS 17.115 did not preclude them from recovering attorney fees under NRS 40.655, as it awarded attorney fees in accordance with Chapter 40. We conclude, however, that NRS 40.655 does not preclude application of the penalty provisions of NRCP 68 and NRS 17.115. Whenever possible, this court will interpret a rule or statute in harmony with other rules and statutes. [9] And when possible, we construe statutes such that no part of the statute is rendered nugatory or turned to mere surplusage. [10] Under NRS 40.655, an award of attorney fees is not mandatory. Instead, NRS 40.655(1) provides that a claimant may recover attorney fees, and thus, recovery of attorney fees is permissible. Further, the amount of attorney fees awarded must be approved by the court. [11] Additionally, NRS 40.650(1) states that the court may deny the claimant's attorney fees and instead award attorney fees to the contractor [i]f a claimant unreasonably rejects a reasonable written offer of settlement made as part of a response pursuant to paragraph (b) of subsection 2 of NRS 40.6472. Thus, NRS Chapter 40 has left discretionary the award of attorney fees, as well as providing a penalty for failure to accept a settlement made under the constructional defect statutes. In contrast, NRCP 68 and NRS 17.115 impose a mandatory penalty against a party who rejected a more favorable offer of judgment. NRCP 68 states that in such a situation the offeree cannot recover any costs or attorney's fees and NRS 17.115(4)(a) states that the court [m]ay not award to the party any costs or attorney's fees. To read NRS 40.655 as overriding NRCP 68 and NRS 17.115, as the Albioses contend and the district court arguably concluded, produces an absurd result. Under this reading, when a claimant in a constructional defect case rejects an offer and fails to obtain a more favorable judgment, although NRCP 68 and NRS 17.115 would mandate that the claimant be denied attorney fees and costs, NRS 40.655 would nevertheless allow the court to award the claimant attorney fees and costs. This reading renders NRCP 68 and NRS 17.115 nugatory in the context of constructional defect cases. [12] Additionally, much of the incentive to serve an offer of judgment would be removed, as NRCP 68 and NRS 17.115 would be essentially toothless. As such, the policy of NRCP 68 and NRS 17.115to save time and money for the court system, the parties, and the taxpayer by rewarding the party who makes a reasonable offer and punishing the party who refuses to accept such an offerwould be thwarted. [13] This is an absurd result, and we do not interpret statutes in this manner. [14] Therefore, we conclude that, when a party is foreclosed from recovering costs and fees under the penalty provisions of NRCP 68 and NRS 17.115, [15] that party is likewise foreclosed from recovering costs and fees under NRS 40.655. [16]