Pro-Max Corp. v. Feenstra

Summary

The Nevada Supreme Court, on rehearing, held that NRS 106.240 unambiguously extinguishes debts secured by deeds of trust ten years after the debt becomes due, without limitation to bona fide purchasers. The court reversed the district court’s contrary judgment but remanded for proceedings on whether Pro-Max was estopped from asserting the statute. The court affirmed the denial of attorney’s fees to Jack Ferguson.

Holdings

1. NRS 106.240 applies without limitation to all debts secured by mortgages or deeds of trust on real property. When ten years have elapsed after the secured debt becomes due, absent a recorded written extension, the lien is conclusively presumed extinguished and the debt discharged.
2. Remand was required because the district court prevented Jack Ferguson and the Feenstras from presenting evidence on whether Pro-Max should be estopped from asserting NRS 106.240.
3. The district court's order denying Jack Ferguson's request for attorney's fees was affirmed.

Questions Presented

1. Whether NRS 106.240's conclusive presumption extinguishing a real-property lien and the secured debt ten years after maturity applies only to bona fide purchasers or applies to all debts secured by a mortgage or deed of trust.
2. Whether the case should be remanded because the district court prevented Jack Ferguson and the Feenstras from presenting evidence supporting their estoppel defense.
3. Whether Jack Ferguson was entitled to attorney's fees.

Disposition

reversed_and_remanded