Opinion ID: 1448259
Heading Depth: 1
Heading Rank: 3

Heading: General Builders' motion in limine to exclude evidence relevant to Great American's affirmative defense of rescission

Text: At the hearing on General Builders' motion in limine, the district court ruled that Great American was not entitled to introduce evidence of facts that would justify rescission of the surety contract because Great American had not pleaded rescission as an affirmative defense. [6] Nevada is a notice-pleading jurisdiction and pleading should be liberally construed to allow issues that are fairly noticed to the adverse party. Nevada State Bank v. Jamison Family Partnership, 106 Nev. 792, 801, 801 P.2d 1377, 1383 (1990). Great American contends that two of its affirmative defenses were sufficient, when construed liberally, to provide General Builders fair notice that rescission was being claimed as a defense to Great American's failure to perform under the surety contract. Affirmative defense No. 15 states: The alleged bonds were withdrawn, revoked, rescinded or declared invalid by Defendant before the effective date of the alleged bonds and thus before the bonds could become effective. (Emphasis added). Affirmative defense No. 18 states: The alleged bonds were withdrawn before the alleged bonds were accepted by the Humboldt Hospital Board of Trustees. We conclude that Great American did not plead rescission as an affirmative defense in its answer. Although affirmative defense No. 15 does use the word rescinded in reference to the bonds, the obvious import of both this defense and affirmative defense No. 18 is that Great American was claiming the right to avoid any obligation under the surety contract simply because it had the power to cancel the bonds, rather than the right to cancel the contract in response to a material breach by General Builders. We conclude, therefore, that the district court did not err in barring Great American's rescission evidence on the ground that Great American did not properly plead the defense.