Opinion ID: 2266133
Heading Depth: 1
Heading Rank: 9

Heading: Standard of proof and sufficiency of evidence

Text: In finding J.D. Construction's lien excessive and expunging it pursuant to NRS 108.2275, the district court applied a preponderance-of-the-evidence standard. J.D. Construction asserts that NRS 108.2275 only requires it to show a good faith basis for its lien amount and therefore the district court applied the wrong standard of proof in making its factual determinations. IBEX contends that because NRS 108.2275 requires a determination of the amount of a lien to determine if it is excessive or frivolous, the district court properly followed the enumerated procedures, and that J.D. Construction's lien was properly expunged. Determination of the correct standard of proof to be used by a tribunal is a legal question, subject to de novo review. Matter of Halverson, 123 Nev. 493, 509, 169 P.3d 1161, 1172 (2007). If the statutory language does not address the issue, then this court looks to reason and public policy to determine the Legislature's intent. Crestline, 119 Nev. at 368, 75 P.3d at 365. NRS 108.2275(6) provides for the summary discharge of a mechanic's lien: If, after a hearing on the matter, the court determines that: (a) The notice of lien is frivolous and was made without reasonable cause, the court shall make an order releasing the lien and awarding costs and reasonable attorney's fees to the applicant for bringing the motion. (b) The amount of the notice of lien is excessive, the court may make an order reducing the notice of lien to an amount deemed appropriate by the court and awarding costs and reasonable attorney's fees to the applicant for bringing the motion. (c) The notice of lien is not frivolous and was made with reasonable cause or that the amount of the notice of lien is not excessive, the court shall make an order awarding costs and reasonable attorney's fees to the lien claimant for defending the motion. (Emphases added.) The statute does not clearly state what standard of proof the district court should use in determining whether the lien is excessive. The plain language of NRS 108.2275(6) is clear that if the district court determines that a mechanic's lien was made without reasonable cause, then the lien is frivolous and the district court may expunge the lien. However, the without reasonable cause language does not appear in the paragraph relating to whether the lien is excessive. Therefore, the statute is capable of more than one reasonable interpretation and is ambiguous. Leven v. Frey, 123 Nev. 399, 404, 168 P.3d 712, 716 (2007). As a result, we must look beyond the plain language of the statute to determine what standard of proof the district court should use to determine if a lien is excessive. Id. Here, the legislative history does not provide any assistance, as it refers only to determinations of whether a lien is frivolous there is no mention of what level of proof is required to show that the lien is excessive. The legislative history of S.B. 434 states: Looking to the level of proof required to show the claim is frivolous, Senator Adler pointed out the burden is such that the plaintiff must show there is absolutely no basis for a claim. If there is any showing of good faith, the court will not dismiss the lien. Hearing on S.B. 434 Before the Senate Comm. on Judiciary, 68th Leg. (Nev., May 25, 1995) (emphases added). Because the legislative history is not helpful, this court must look to reason and public policy to determine what the Legislature intended the evidentiary standard to be for the district court to determine whether a lien is excessive. We conclude that the district court must apply a preponderance-of-the-evidence standard to determine whether a lien is excessive. We conclude that this standard comports with reason and public policy because the preponderance-of-the-evidence standard is the general civil standard. Irving v. Irving, 122 Nev. 494, 497, 134 P.3d 718, 720 (2006). `[Preponderance of the evidence' merely refers to `[t]he greater weight of the evidence.' McClanahan v. Raley's, Inc., 117 Nev. 921, 925-26, 34 P.3d 573, 576 (2001) (quoting Black's Law Dictionary 1201 (7th ed.1999)). If parties present conflicting evidence during an NRS 108.2275 hearing, the district court should determine which evidence has greater weight and, accordingly, whether the lien is excessive. Thus, the district court applied the correct standard in evaluating the evidence presented in this case. J.D. Construction further argues that the district court erred in concluding the mechanic's lien was excessive because the district court's decision was not based on admissible, reliable, or substantial evidence. We disagree. This court will not disturb the district court's factual determinations if substantial evidence supports those determinations. Radaker v. Scott, 109 Nev. 653, 657, 855 P.2d 1037, 1040 (1993). Substantial evidence is that [evidence] which `a reasonable mind might accept as adequate to support a conclusion.' Id. (quoting State Emp. Security v. Hilton Hotels, 102 Nev. 606, 608, 729 P.2d 497, 498 (1986) (quoting Richardson v. Perales, 402 U.S. 389, 410, 91 S.Ct. 1420, 28 L.Ed.2d 842 (1971))). Therefore, this court will only set aside findings that are clearly erroneous. Id. While we do not agree completely with the district court's reasoning regarding who was the most credible witness in this case, we affirm its decision because we conclude that it nonetheless reached the correct result. Sengel v. IGT, 116 Nev. 565, 570, 2 P.3d 258, 261 (2000) (affirming where the district court reached the right result for the wrong reason). J.D. Construction had the burden to show the adequacy of its lien, but it failed to do so. J.D. Construction failed to address the subcontractors' claims and whether its lien included money for the subcontractors. Further, despite being given the opportunity to depose the person with the most knowledge regarding the completion of the project, J.D. Construction failed to present substantial evidence regarding the percentage completed and the total amount of the contract in light of affidavits and evidence submitted by IBEX. Therefore, J.D. Construction's claims must fail. We conclude that the district court did not err in expunging the lien because it applied the correct standard of proof and substantial evidence supported its decision. Accordingly, we affirm the order of the district court. We concur: HARDESTY and PICKERING, JJ.