Direct Grading & Paving v. Eighth Judicial District Court
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The Supreme Court granted writ relief in this case concerning whether the district court has authority to intervene in binding arbitration to sanction a party's misconduct, holding that the district court improperly intervened in this matter.
The parties agreed to Plaintiff filing a complaint, staying the action, selecting an arbitrator, and allowing the case to proceed through arbitration. After an improper sweep of Plaintiff's technology, Defendant filed a motion for discovery sanctions. The arbitrator fined Plaintiff but declined to strike Plaintiff's claims at that time, as requested by Defendant. Defendant then filed a motion in the district court for provisional relief, requesting that the court take action to remedy the misconduct. The district court found that it had the authority to address the issues raised in the motion. The Supreme Court granted Plaintiff's petition for writ relief, holding (1) where Nev. Rev. Stat. 38.222 provides limited authority to intervene in an arbitration only where the district court orders a provisional remedy and where the court did not order a provisional remedy in this case, the district court lacked authority under section 38.222 to intervene in the arbitration; and (2) the district court did not have inherent authority to intervene in the arbitration because the alleged litigation misconduct was squarely before the arbitrator.
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