Artemis Exploration Co. v. Ruby Lake Estates Homeowner's Ass'n

The Supreme Court affirmed the district court's determination that Ruby Lake Estates Homeowner's Association's (RLEHOA) authority to impose assessments on Appellants, property owners in Ruby Lake Estates (RLE), holding that RLE is a common-interest community within the meaning of Nev. Rev. Stat. 116.021 and that RLEHOA did not need to be organized before the first lot in RLE was conveyed.

RLE was create in 1989. Appellants filed a declaratory relief action challenging RLEHOA's authority to impose assessments on them. Specifically, Appellants argued (1) RLE was not a validly created "common-interest community" as defined by section 116.021; and (2) alternatively, RLEHOA was not a validly created "unit-owners' association." The district court granted summary judgment for RLEHOA. The Supreme Court affirmed, holding (1) RLE is a common-interest community because RLE's declaration contained an implied payment obligation for the common elements and other real estate of which Appellants had notice; and (2) Nev. Rev. Stat. 116.3101(1) does not apply to common-interest communities formed before 1992, and therefore, RLEHOA did not need to be organized before the first lot in RLE was conveyed.