Double Diamond Ranch Master Ass’n v. Second Judicial Dist. Court
Annotate this CaseIn 1996, the developer of Double Diamond Ranch Master Association (Association) entered into a maintenance agreement with the City of Reno. In 2012, the Association gave notice to the City that it was terminating the contract pursuant to Nev. Rev. Stat. 116.3105(2), which permits a homeowners’ association that provides at least ninety days’ notice to terminate “any contract…that is not in good faith or was unconscionable to the units’ owners at the time entered into.” The City rejected the Association’s notice of termination. Approximately twenty months later, the City brought an action against the Association seeking specific performance of the maintenance agreement. The Association filed a motion to dismiss, arguing that section 116.3105(2) required the City to file suit within ninety days. The district court denied the Association’s motion to dismiss. The Association subsequently petitioned the Supreme Court for a writ of mandamus or prohibition directing the district court to vacate its order denying the Association’s motion to dismiss. The Supreme Court denied the petition, holding that section 116.3105(2) does not act as a statute of limitations, and a recipient of an association’s notice of termination of a contract is not required to take legal action within ninety days.
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