Cashman Equip. Co. v. W. Edna Assocs., Ltd.Annotate this Case
This case stemmed from a new Las Vegas City Hall construction project. Mojave, the electrical subcontractor for the project, accepted a bid from Cashman to provide specialty materials for the building. Instead of contracting directly with Cashman, Mojave contracted with Cam, and Cam contracted with Cashman. In exchange for an unconditional release from Cashman to Cam and Mojave, Cashman received payment via a check from Cam, but Cam stopped payment on the check. When payment was not forthcoming, Cashman filed a mechanic’s lien for $755,893, and then filed suit. The district court awarded Cashman $197,051 for foreclosure of security interest and $86,600 for unjust enrichment. Cashman appealed. The Supreme Court reversed, holding that the unconditional release that cash Cashman gave to Cam and Mojave was void because (1) Nev. Rev. Stat. 108.2457(5)(e) precludes enforcement of the release when the check given in exchange for the release is not honored by the payor’s bank, and the check that Cam gave to Cashman did not clear the bank; and (2) equitable fault analysis may not be used to reduce an award in a mechanic’s lien case. Remanded to recalculate Mojave’s liability to Cashman.