Taking Nevada

A very interesting non-eminent domain property law case from the Nevada Supreme Court.

A short synopsis:  Silver Bowl RV Resort, LLC owned… well the name tells you what it owned.   In 2002 Silver Bowl leased some land for a cell-phone tower to Cingular, which then transferred it to another company.  At the height of the 2005 Real Estate Bubble, Silver Bowl decided to convert its property into a housing development, and mortgaged all of their interests.  Predictably, in 2008 everything fell apart.

Litigation ensued as to whether Silver Bowl retained an interest in the cell-tower lease payments, or whether those payments had gone along with all the other interests in the foreclosure.  Short answer: Nope.  When Silver Bowl pledged all of their interest in exchange for a loan, it pledged everything, including the right to receive lease payments.

Of note, the Nevada Supreme Court has a large discussion of “parole” evidence.  This, of course, is not a thing.  The parol evidence rule precludes a party from introducing certain materials outside of contract in an effort to contradict the contract.  Parole evidence is someone relying on automated spell check.

Link:  18-38002