Mediation before you can sue
A dispute about your CC&Rs, your association’s rules or how it set your assessments must go to mediation — and through the association’s own internal procedures — before a court will hear it. A court must dismiss a case filed without both. The full statutory text, hosted for reference, with a plain-language guide for homeowners.
Nev. Rev. Stat. §§ 38.300 to 38.360 do something few states do: they make mediation a precondition to suing in most disputes between a homeowner and a common-interest community, and they tell the court what to do if you skip it.
§ 38.310 is the section to read first, and it has two halves. It bites on a civil action based on a claim relating to (a) the interpretation, application or enforcement of any CC&Rs applicable to residential property, or of any bylaws, rules or regulations adopted by an association, or (b) the procedures used for increasing, decreasing or imposing additional assessments on residential property. A negligence, contract or personal-injury claim is outside it.
Such an action may not be commenced in any court in this State unless it has been submitted to mediation or, if the parties agree, referred to a program of dispute resolution — and, where it concerns real estate in a chapter 116 planned community or a chapter 116B condominium hotel, unless “all administrative procedures specified in any covenants, conditions or restrictions applicable to the property or in any bylaws, rules and regulations of an association have been exhausted.” Mediating is not enough on its own: an owner who has not run the association’s own internal appeal to its end is exposed to the same result. Subsection 2 is one sentence long: “A court shall dismiss any civil action which is commenced in violation of the provisions of subsection 1.” Not may — shall.
Now read the definition, because the requirement is narrower than it sounds. § 38.300(3) defines “civil action” to include an action for money damages or equitable relief, but the term does not include an action in equity for injunctive relief in which there is an immediate threat of irreparable harm, or an action relating to the title to residential property. If your neighbour’s contractor is about to demolish something today, or the dispute is about who owns the land, you are not required to mediate first.
How the process actually runs
You start by filing a written claim with the Division (§ 38.320), saying whether you want the claim referred to a program, and then serving it the way a summons and complaint are served under Rule 4 of the Nevada Rules of Civil Procedure. The other side has 30 days after service to file a written answer with the Division, which must also say whether they want a program.
Unless a program is used, the parties select a mediator from the Division’s list, and if they cannot agree the Division makes the selection (§ 38.330). Mediation must be completed within 60 days of the claim being filed, must not exceed 3 hours, and must not cost more than $500 for those three hours, with any extension capped at $200 an hour. Filing carries a $50 fee, and so does the answer. If mediation does not produce an agreement, the parties may then agree to arbitration — capped at $300 an hour — and if they agree to arbitrate without saying whether it binds them, it is nonbinding.
Watch the clock after an award. From a nonbinding award a party has 30 days to commence a civil action; if nobody does, any party may within 1 year of service apply to have the award confirmed as a judgment. If the claim went to a program instead, the window is 60 days. And § 38.350 tolls any statute of limitations from the moment the claim is submitted until the process ends, so mediating does not cost you your deadline.
There is a real cost to pressing on and doing worse — but only after binding arbitration. A party who, after a binding arbitration, applies to vacate the award or commences a civil action on the same claim and then fails to obtain a more favourable award or judgment than the binding one, must pay all costs and reasonable attorney’s fees the opposing party incurred after that point. Suing within 30 days of a nonbinding award carries no such penalty.
How it fits with Nevada’s other community laws
What the dispute is about almost always comes from chapter 116 and your recorded declaration — and § 116.4117(2) is the section that expressly subjects a chapter 116 civil action to § 38.310, with § 116.4117(7) confirming that its civil remedy is in addition to, and not exclusive of, any other. Before any of it, the Ombudsman (§ 116.625) can often help resolve a complaint at no cost, and § 116.755 makes the Division’s and Commission’s remedies under §§ 116.745 to 116.795 cumulative. What none of that does is substitute for the mediation this chapter requires. Return to the Nevada HOA laws hub for the full set.
Contents · 8 sections ▾
- NRS 38.300 Definitions
- NRS 38.310 Limitations on commencement of certain civil actions
- NRS 38.320 Submission of claim for mediation or referral to program of dispute resolution; contents of claim; fees; service of claim; written answer
- NRS 38.325 Program of dispute resolution: Authority of Division to establish; procedure for claim referred to program
- NRS 38.330 Procedure for mediation or arbitration of claim; payment of costs and fees upon failure to obtain a more favorable award or judgment in court
- NRS 38.340 Duties of Division: Maintenance of list of mediators and arbitrators; establishment of explanatory document
- NRS 38.350 Statute of limitations tolled
- NRS 38.360 Administration of provisions by Division; regulations; fees
As used in NRS 38.300 to 38.360, inclusive, unless the context otherwise requires:
1. “Assessments” means:
(a) Any charge which an association may impose against an owner of residential property pursuant to a declaration of covenants, conditions and restrictions, including any late charges, interest and costs of collecting the charges; and
(b) Any penalties, fines, fees and other charges which may be imposed by an association pursuant to paragraphs (j) to (o), inclusive, of subsection 1 of NRS 116.3102 or subsections 10, 11 and 12 of NRS 116B.420.
2. “Association” has the meaning ascribed to it in NRS 116.011 or 116B.030.
3. “Civil action” includes an action for money damages or equitable relief. The term does not include an action in equity for injunctive relief in which there is an immediate threat of irreparable harm, or an action relating to the title to residential property.
4. “Division” means the Real Estate Division of the Department of Business and Industry.
5. “Program” means a program established by the Division under which a person, including, without limitation, a referee or hearing officer, can render decisions on disputes relating to:
(a) The interpretation, application or enforcement of any covenants, conditions or restrictions applicable to residential property or any bylaws, rules or regulations adopted by an association; or
(b) The procedures used for increasing, decreasing or imposing additional assessments upon residential property.
6. “Residential property” includes, but is not limited to, real estate within a planned community subject to the provisions of chapter 116 of NRS or real estate within a condominium hotel subject to the provisions of chapter 116B of NRS. The term does not include commercial property if no portion thereof contains property which is used for residential purposes.
(Added to NRS by 1995, 1416; A 2003, 2251, 2274; 2007, 2277; 2013, 2295; 2019, 864)
Cites other chapters: NRS 116.011, NRS 116.3102, NRS 116B.030, NRS 116B.420
1. No civil action based upon a claim relating to:
(a) The interpretation, application or enforcement of any covenants, conditions or restrictions applicable to residential property or any bylaws, rules or regulations adopted by an association; or
(b) The procedures used for increasing, decreasing or imposing additional assessments upon residential property,
Ê may be commenced in any court in this State unless the action has been submitted to mediation or, if the parties agree, has been referred to a program pursuant to the provisions of NRS 38.300 to 38.360, inclusive, and, if the civil action concerns real estate within a planned community subject to the provisions of chapter 116 of NRS or real estate within a condominium hotel subject to the provisions of chapter 116B of NRS, all administrative procedures specified in any covenants, conditions or restrictions applicable to the property or in any bylaws, rules and regulations of an association have been exhausted.
2. A court shall dismiss any civil action which is commenced in violation of the provisions of subsection 1.
(Added to NRS by 1995, 1417; A 1997, 526; 2007, 2278; 2013, 2296)
1. Any civil action described in NRS 38.310 must be submitted to mediation or referred to a program by filing a written claim with the Division. The claim must include:
(a) The complete names, addresses and telephone numbers of all parties to the claim;
(b) A specific statement of the nature of the claim;
(c) A statement of whether the person wishes to have the claim referred to a program; and
(d) Such other information as the Division may require.
2. The written claim must be accompanied by a filing fee of $50.
3. Upon the filing of the written claim, the claimant shall serve a copy of the claim in the manner prescribed in Rule 4 of the Nevada Rules of Civil Procedure for the service of a summons and complaint. The claim so served must be accompanied by a statement explaining the procedures for mediation and for a program set forth in NRS 38.300 to 38.360, inclusive.
4. Upon being served pursuant to subsection 3, the person upon whom a copy of the written claim was served shall, within 30 days after the date of service, file a written answer with the Division, which must include a statement of whether the person wishes to have the claim referred to a program. The answer must be accompanied by a filing fee of $50.
(Added to NRS by 1995, 1417; A 2013, 2296)
If the Division establishes a program:
1. Upon receipt of a written claim and answer filed pursuant to NRS 38.320 in which all the parties indicate that they wish to have the claim referred to such a program, the Division may refer the parties to the program.
2. The person to whom the parties are referred pursuant to the program shall review the claim and answer filed pursuant to NRS 38.320 and, unless the parties agree to waive a hearing, conduct a hearing on the claim. After reviewing the claim and the answer and, if required, conducting a hearing on the claim, the person shall issue a written decision and award and provide a copy of the written decision and award to the parties. The person may not award to either party costs or attorney’s fees.
3. Any party may, within 60 days after receiving the written decision and award pursuant to subsection 2, commence a civil action in the proper court concerning the claim. Any complaint filed in such an action must contain a sworn statement indicating that the issues addressed in the complaint have been referred to a program pursuant to the provisions of NRS 38.300 to 38.360, inclusive. If such an action is not commenced within 60 days after receiving the written decision and award pursuant to subsection 2, any party may, within 1 year after receiving the written decision and award, apply to the proper court for a confirmation of the written decision and award pursuant to NRS 38.239.
(Added to NRS by 2013, 2295)
1. Unless a program has been established and the parties have elected to have the claim referred to a program, the parties shall select a mediator from the list of mediators maintained by the Division pursuant to NRS 38.340. Any mediator selected must be available within the geographic area. If the parties fail to agree upon a mediator, the Division shall appoint a mediator from the list of mediators maintained by the Division. Any mediator appointed must be available within the geographic area. Unless otherwise provided by an agreement of the parties, mediation must be completed within 60 days after the filing of the written claim. Not later than 5 days before mediation is scheduled to be conducted, each party must submit to the mediator a written statement which sets forth the issues in dispute. Mediation must not exceed 3 hours, unless the parties agree to an extension of such time. Any agreement obtained through mediation conducted pursuant to this section must, within 20 days after the conclusion of mediation, be reduced to writing by the mediator and a copy thereof provided to each party. The agreement may be enforced as any other written agreement. Except as otherwise provided in this section, the parties are responsible for the cost of mediation conducted pursuant to this section, which must not exceed $500 for 3 hours of mediation. If the parties agree to extend mediation beyond 3 hours pursuant to this subsection, the fee for the additional hours must not exceed $200 per hour. If the parties participate in mediation and an agreement is not obtained, any party may commence a civil action in the proper court concerning the claim that was submitted to mediation. Any complaint filed in such an action must contain a sworn statement indicating that the issues addressed in the complaint have been mediated pursuant to the provisions of NRS 38.300 to 38.360, inclusive, but an agreement was not obtained.
2. Before commencing a civil action in the proper court, the parties named in the claim may agree to arbitration if the parties have participated in mediation in which an agreement was not obtained or if a written decision and award have been issued pursuant to NRS 38.325. Unless the parties agree in writing to binding arbitration, the arbitration is nonbinding. The cost of arbitration conducted pursuant to this section must not exceed $300 per hour. If the parties agree to arbitration, they shall select an arbitrator from the list of arbitrators maintained by the Division pursuant to NRS 38.340. Any arbitrator selected must be available within the geographic area. If the parties fail to agree upon an arbitrator, the Division shall appoint an arbitrator from the list maintained by the Division. Any arbitrator appointed must be available within the geographic area. Upon appointing an arbitrator, the Division shall provide the name of the arbitrator to each party. An arbitrator shall, not later than 5 days after the arbitrator’s selection or appointment pursuant to this subsection, provide to the parties an informational statement relating to the arbitration of a claim pursuant to this section. The written informational statement:
(a) Must be written in plain English;
(b) Must explain the procedures and applicable law relating to the arbitration of a claim conducted pursuant to this section, including, without limitation, the procedures, timelines and applicable law relating to confirmation of an award pursuant to NRS 38.239, vacation of an award pursuant to NRS 38.241, judgment on an award pursuant to NRS 38.243, and any applicable statute or court rule governing the award of attorney’s fees or costs to any party; and
(c) Must be accompanied by a separate form acknowledging that the party has received and read the informational statement, which must be returned to the arbitrator by the party not later than 10 days after receipt of the informational statement.
3. The Division may provide for the payment of the fees for a mediator or an arbitrator selected or appointed pursuant to this section from the Account for Common-Interest Communities and Condominium Hotels created by NRS 116.630, to the extent that:
(a) The Commission for Common-Interest Communities and Condominium Hotels approves the payment; and
(b) There is money available in the Account for this purpose.
4. Except as otherwise provided in this section and except where inconsistent with the provisions of NRS 38.300 to 38.360, inclusive, the arbitration of a claim pursuant to this section must be conducted in accordance with the provisions of NRS 38.231, 38.232, 38.233, 38.236 to 38.239, inclusive, 38.242 and 38.243. At any time during the arbitration of a claim relating to the interpretation, application or enforcement of any covenants, conditions or restrictions applicable to residential property or any bylaws, rules or regulations adopted by an association, the arbitrator may issue an order prohibiting the action upon which the claim is based. An award must be made within 30 days after the conclusion of arbitration, unless a shorter period is agreed upon by the parties to the arbitration.
5. If all the parties have agreed to arbitration but have not agreed whether the arbitration will be binding or nonbinding, the arbitration will be nonbinding. If arbitration is nonbinding, any party to the nonbinding arbitration may, within 30 days after a final decision and award which are dispositive of any and all issues of the claim which were submitted to nonbinding arbitration have been served upon the parties, commence a civil action in the proper court concerning the claim which was submitted for arbitration. Any complaint filed in such an action must contain a sworn statement indicating that the issues addressed in the complaint have been arbitrated pursuant to the provisions of NRS 38.300 to 38.360, inclusive. If such an action is not commenced within that period, any party to the arbitration may, within 1 year after the service of the award, apply to the proper court for a confirmation of the award pursuant to NRS 38.239.
6. If all the parties agree in writing to binding arbitration, the arbitration must be conducted in accordance with the provisions of this chapter. An award procured pursuant to such binding arbitration may be vacated and a rehearing granted upon application of a party pursuant to the provisions of NRS 38.241.
7. If, after the conclusion of binding arbitration, a party:
(a) Applies to have an award vacated and a rehearing granted pursuant to NRS 38.241; or
(b) Commences a civil action based upon any claim which was the subject of arbitration,
Ê the party shall, if the party fails to obtain a more favorable award or judgment than that which was obtained in the initial binding arbitration, pay all costs and reasonable attorney’s fees incurred by the opposing party after the application for a rehearing was made or after the complaint in the civil action was filed.
8. Upon request by a party, the Division shall provide a statement to the party indicating the amount of the fees for a mediator or an arbitrator selected or appointed pursuant to this section.
9. As used in this section, “geographic area” means an area within 150 miles from any residential property or association which is the subject of a written claim submitted pursuant to NRS 38.320.
(Added to NRS by 1995, 1418; A 1999, 3016; 2001, 1283; 2003, 35, 39, 2251; 2007, 2278; 2009, 2904; 2011, 801; 2013, 2297)
Cites other chapters: NRS 116.630
For the purposes of NRS 38.300 to 38.360, inclusive, the Division shall establish and maintain:
1. A list of mediators and arbitrators who are available for mediation and arbitration of claims. The list must include mediators and arbitrators who, as determined by the Division, have received training and experience in mediation or arbitration and in the resolution of disputes concerning associations, including, without limitation, the interpretation, application and enforcement of covenants, conditions and restrictions pertaining to residential property and the articles of incorporation, bylaws, rules and regulations of an association. In establishing and maintaining the list, the Division may use lists of qualified persons maintained by any organization which provides mediation or arbitration services. Before including a mediator or arbitrator on a list established and maintained pursuant to this section, the Division may require the mediator or arbitrator to present proof satisfactory to the Division that the mediator or arbitrator has received the training and experience required for mediators or arbitrators pursuant to this section.
2. A document which contains a written explanation of the procedures for mediating and arbitrating claims and for a program pursuant to NRS 38.300 to 38.360, inclusive.
(Added to NRS by 1995, 1419; A 2013, 2299)
Any statute of limitations applicable to a claim described in NRS 38.310 is tolled from the time the claim is submitted to mediation or arbitration or referred to a program pursuant to NRS 38.300 to 38.360, inclusive, until the conclusion of mediation or arbitration of the claim and the period for vacating the award has expired, or until the issuance of a written decision and award pursuant to the program.
(Added to NRS by 1995, 1419; A 2013, 2300)
1. The Division shall administer the provisions of NRS 38.300 to 38.360, inclusive, and may adopt such regulations as are necessary to carry out those provisions.
2. All fees collected by the Division pursuant to the provisions of NRS 38.300 to 38.360, inclusive, must be accounted for separately and may only be used by the Division to administer the provisions of NRS 38.300 to 38.360, inclusive.
(Added to NRS by 1995, 1419; A 2013, 2300)
General information, not legal advice. Statutory text is reproduced from the Nevada Revised Statutes and may not reflect the most recent amendments.