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City of North Las Vegas v. 5th & Centennial, LLC

Supreme Court of Nevada

August 7, 2014

CITY OF NORTH LAS VEGAS, Appellant/Cross-Respondent,
v.
5TH & CENTENNIAL, LLC, A NEVADA LIMITED LIABILITY COMPANY; 5TH & CENTENNIAL II, LLC, A NEVADA LIMITED LIABILITY COMPANY; 5TH & CENTENNIAL III, LLC, A NEVADA LIMITED LIABILITY COMPANY; ALL FOR ONE FAMILY TRUST; BRIAN A. LEE AND JULIE A. LEE, TRUSTEES FOR THE ALL FOR ONE FAMILY TRUST; AND BRIAN A. LEE; AND JULIE A. LEE, Respondents/Cross-Appellants. CITY OF NORTH LAS VEGAS, Appellant/Cross-Respondent,
v.
5TH & CENTENNIAL, LLC, A NEVADA LIMITED LIABILITY COMPANY; 5TH & CENTENNIAL II, LLC, A NEVADA LIMITED LIABILITY COMPANY; 5TH & CENTENNIAL III, LLC, A NEVADA LIMITED LIABILITY COMPANY; ALL FOR ONE FAMILY TRUST; BRIAN A. LEE; AND JULIE A. LEE, Respondents/Cross-Appellants.

Petition for rehearing of this court's March 21, 2014, order affirming in part, reversing in part, and remanding to determine prejudgment interest in this eminent domain matter. Eighth Judicial District Court, Clark County; Mark R. Denton, Judge.

COUNSEL:

Marquis Aurbach Coffing and Micah S. Echols, Brian R. Hardy, and Jack C. Juan, Las Vegas, for Appellant/Cross-Respondent.

John Peter Lee Ltd. and John C. Courtney and John Peter Lee, Las Vegas; Kemp, Jones & Coulthard, LLP, and William L. Coulthard, Jennifer C. Dorsey, and Eric M. Pepperman, Las Vegas, for Respondents/Cross-Appellants.

JUDGES: Gibbons, C.J. We concur: Pickering, J., Hardesty, J., Douglas, J., Cherry, J., Saitta, J.

OPINION

Page 897

BEFORE THE COURT EN BANC.[1]

GIBBONS, C.J.:

On March 21, 2014, this court issued a dispositional order regarding this appeal from the district court's decision in an eminent domain action. In that order we addressed a number of issues, but pertinent to this opinion, we considered whether the district court erred in calculating the prejudgment interest award from the date on which the summons and complaint were served, rather than from the date on which the injury resulting from the conduct that supported precondemnation damages arose. We concluded that the district court did err in its calculation of prejudgment interest, and we held that prejudgment interest should be calculated from the date on which the resulting injury arose. Appellant/cross-respondent City of North Las Vegas seeks rehearing of that order on the prejudgment interest issue, as well as on issues concerning the statute of limitations and standing. Although rehearing is not warranted, we take this opportunity to address the issues raised by the City in order to clarify the relevant law.

FACTS AND PROCEDURAL HISTORY

Beginning in 2002, the City planned, adopted, and began construction on a seven-mile-long, eight-lane, high-speed, super-arterial roadway along North 5th Street to relieve regional traffic congestion on Interstate 15 (the Project). Over the next eight years, the City and others conducted a number of studies, developed reports, budgeted, and authorized planning documents for the Project. The City's 2004 amendment to its Master Plan of Streets and Highways (AMP-70-04) allowed for North 5th Street to be widened up to 150 feet and provided that approval of development applications must be conditioned upon landowners giving up a 75-foot right-of-way on the land fronting that street. The Project was divided into two sections: a northern half, from Owens Avenue to Cheyenne Avenue; and a southern half, from Cheyenne Avenue to Clark County 215. Between 2000 and 2005, respondents/cross-appellants 5th & Centennial, LLC; 5th & Centennial II, LLC; 5th & Centennial III, LLC; All for One Family Trust; and Brian and Julie Lee (collectively, the Landowners) acquired five vacant parcels totaling more than 20 acres on the northwest corner of North 5th Street and Centennial Parkway (the Property), in the northern half of the Project.

When the economy stalled in recent years, so did the City's progress on the northern half of the Project, which relied on federal funding. On January 1, 2010, the Landowners filed a complaint against the City for inverse condemnation and precondemnation damages, asserting that the City's delay in condemning their properties had prevented

Page 898

them from advantageously selling the properties. Following an eight-day bench trial, the district court concluded that the inverse condemnation claim was not ripe but awarded the Landowners precondemnation damages. The district court further awarded ...


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