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CALIFORNIA CORPORATE & SECURITIES LAW

Nevada Supreme Court Doubles Down On Joint Venture By Estoppel

Last March, I wrote about a decision of a panel of the Nevada Supreme Court in In re Cay Clubs, 130 Nev. Adv. 14 (2014).  The defendants thereafter sought reconsideration by the Supreme Court sitting en banc.  Yesterday, the Supreme Court issued its opinion.  For those familiar with the panel’s opinion, there are no surprises from the full court.  The full Court found:

  • Partnership by estoppel can be found whether the subject of the action is a partnership or a joint venture;
  • The consent required for partnership by estoppel can be express or implied from conduct;
  • The reference to “given credit” in NRS 87.160(1) means “giving credence to the representation by detrimentally relying on it to engage in a transaction with the purported partnership;
  • The claimant must have reasonably relied on the representation of partnership or joint venture; and
  • Partnership liability may be imposed with respect to non-contractual claims that implicate the reliance element.

130 Nev. Adv. 92 (2014).

 

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