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Beazer Homes Nevada9/13/2004
This is an original proceeding brought by Beazer Homes Nevada, Inc., against various district court judges and real parties in interest William Robinson, The Highland Glen Homeowners Association, Coleen Fuller, Daniel Bolster and Sharon Bolster (collectively Homeowners). Beazer contends that it dissolved as a corporate entity more than two years before the underlying construction defect complaints were filed and that the complaints are therefore barred under NRS 78.585. The Homeowners contend that the statute only bars actions that arise before the date of dissolution and are not commenced within the two-year statutory period. The Homeowners also contend that the word "arise" is a term of art that applies when a claimant knows or should have known of a cause of action against the corporation and that their claims did not arise before Beazer's dissolution. We agree with the Homeowners' interpretation of the statute and accordingly deny the petition.
FACTS
This case involves four separate construction defect complaints filed against Beazer. Residents of a subdivision known as Belle Esprit filed the first as a class action complaint on December 5, 2001. The second case was filed on November 6, 2002, and involved the Highland Glen development. On March 13, 2003, the third complaint was filed involving the Vista Del Oro community. Also, on March 13, 2003, Daniel and Sharon Bolster filed an individual action regarding their home located on Arco Iris Lane.
At some point in each of these cases, sometimes after years of litigation, Beazer filed a motion to dismiss the complaint because Beazer formally dissolved as a corporate entity on October 14, 1996. Beazer claimed that NRS 78.585 mandates the dismissal of any complaint against a dissolved corporation brought more than two years after the date of dissolution. Various oppositions were filed citing several reasons for denying the motions to dismiss.
In their oppositions, the Homeowners argued that the statute's plain language made it applicable only to causes of action that arose before the dissolution. Because some homes were built after the dissolution, those homes would not be covered under the statute. As to homes that were built before the dissolution, the Homeowners asserted that the statute was ambiguous because the word "arising" could be reasonably interpreted in two different ways. In its ordinary usage, the term could refer to the time when the defects were created regardless of when the Homeowners discovered the defects. Even so, the Homeowners contended that the word could also be interpreted as a legal term of art because when used in other statutes, such as statutes of limitation, it means the time when a claimant knew or should have known of the existence of the construction defects. If the second meaning is used, the Homeowners contend that a blanket motion to dismiss covering all claims and all litigants would be inappropriate because of the need to resolve the central factual issue-when did the Homeowners learn of their claims.
Four different district judges ruled on the motions. All four denied the motions to dismiss, although for varying reasons. Beazer then filed this writ petition seeking to compel the district courts to dismiss the cases.
DECISION
In State of Nevada v. District Court (Anzalone), we held that "writ relief is available to review a district court's denial of a motion to dismiss, but only on a limited basis." This court will only entertain writ petitions challenging district court denials of motions to dismiss when:
"(1) no factual dispute exists and the district court is obligated to dismiss an action pursuant to clear au
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