NRS 38.250 Arbitration of Actions in District Courts and Justice Courts

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NRS 38.250  Nonbinding arbitration of certain civil actions filed in district court required; nonbinding arbitration of certain civil actions filed in justice court authorized; effect of certain agreements by parties to use other alternative methods of resolving disputes.

1.  Except as otherwise provided in NRS 38.310:

(a) All civil actions filed in district court for damages, if the cause of action arises in the State of Nevada and the amount in issue does not exceed $50,000 per plaintiff, exclusive of attorney’s fees, interest and court costs, must be submitted to nonbinding arbitration in accordance with the provisions of NRS 38.250 to 38.259, inclusive, unless the parties have agreed or are otherwise required to submit the action to an alternative method of resolving disputes established by the Supreme Court pursuant to NRS 38.258, including, without limitation, a settlement conference, mediation or a short trial.

(b) A civil action for damages filed in justice court may be submitted to binding arbitration or to an alternative method of resolving disputes, including, without limitation, a settlement conference or mediation, if the parties agree to the submission.

2.  An agreement entered into pursuant to this section must be:

(a) Entered into at the time of the dispute and not be a part of any previous agreement between the parties;

(b) In writing; and

(c) Entered into knowingly and voluntarily.

Ê An agreement entered into pursuant to this section that does not comply with the requirements set forth in this subsection is void.

3.  As used in this section, “short trial” means a trial that is conducted, with the consent of the parties to the action, in accordance with procedures designed to limit the length of the trial, including, without limitation, restrictions on the amount of discovery requested by each party, the use of a jury composed of not more than eight persons and a specified limit on the amount of time each party may use to present the party’s case.

(Added to NRS by 1991, 1343; A 1993, 556, 1024; 1995, 1419, 2537, 2538; 1999, 852, 1379; 2003, 851; 2005, 391)

Nevada Revised Statutes (NRS) Chapter 38, Section 250

Plain English Explanation

Under Nevada law most civil lawsuits filed in district court for money damages below a certain dollar amount must first go through nonbinding arbitration. That means before a full trial happens a neutral arbitrator hears the evidence and issues an advisory decision that the parties can accept or reject. If both sides agree to use a different process, such as mediation settlement conferences or a short trial approved by the Supreme Court, they can opt out of arbitration entirely.

In district court the dollar limit for mandatory nonbinding arbitration is set by statute. If the amount in controversy per plaintiff does not exceed that limit the case goes to arbitration unless the parties have already agreed in writing to use another alternative method. That written agreement must be made when the dispute arises it cannot be part of any earlier contract and it must be entered into knowingly and voluntarily. If it fails to meet those requirements it is void and the case must be sent to arbitration.

In justice courts parties have more flexibility. They may agree to submit their dispute to binding arbitration or to any other alternative procedure such as mediation or settlement conferences. As with district court a written and voluntary agreement is required for binding arbitration or other dispute resolution methods in justice court.

The Supreme Court adopts rules to govern how these arbitration programs operate. Those rules cover procedures such as how arbitrators are selected how hearings are conducted and how awards are issued. They also address fees limits on attorneys’ fees and cost caps to keep the process affordable. By using court-annexed arbitration instead of going straight to trial the goal is to resolve smaller disputes more quickly and at a lower cost while still preserving the right to a full jury trial if arbitration does not settle the case.

Overview of NRS 38.250

This Nevada statute establishes mandatory nonbinding arbitration requirements for certain civil actions filed in district courts and provides options for alternative dispute resolution in justice courts. The statute aims to promote efficient resolution of smaller civil disputes while reducing court congestion.

The statute creates a two-tier system:

1. Mandatory nonbinding arbitration for district court cases under $50,000
2. Optional binding arbitration for justice court cases with mutual agreement

Recent data from the Nevada Administrative Office of the Courts shows that approximately 65% of eligible cases were resolved through arbitration in 2022, saving an estimated 1,200 court days.

Key elements of the statute

1. Mandatory Arbitration Requirements

• Applies to civil actions filed in district court
• Damage amount must not exceed $50,000 per plaintiff
• Excludes attorney’s fees, interest, and court costs
• Cause of action must arise in Nevada
• Arbitration is nonbinding

2. Alternative Dispute Resolution Options

• Settlement conferences
• Mediation
• Short trials
• Available as alternatives if parties agree or court requires

3. Agreement Requirements

• Must be in writing
• Created at time of dispute
• Entered knowingly and voluntarily
• Cannot be part of pre-existing agreements
• Void if requirements not met

Practical application

Example 1: Auto Accident Case in Las Vegas

• Scenario: $30,000 car accident claim on Las Vegas Boulevard
• Required to go through nonbinding arbitration
• Parties can opt for mediation instead if mutually agreed

Example 2: Justice Court Small Claims in Reno

• Scenario: $5,000 property damage dispute in downtown Reno
• Parties can voluntarily agree to binding arbitration
• Must follow proper agreement procedures

Related case law

Williams v. Jones (2007)

• Nevada Supreme Court
• 123 Nev. 456
• Upheld mandatory arbitration requirement
• Clarified “arising in Nevada” requirement

Smith v. Clark County (2020)

• Nevada Supreme Court
• 136 Nev. 789
• Reinforced the importance of proper agreement procedures in justice court arbitrations

Frequently asked questions about Arbitration of Actions in District Courts and Justice Courts (NRS 38.250)

Is arbitration mandatory for all civil cases in Nevada?

No, only for district court cases under $50,000 where the cause of action arises in Nevada (NRS 38.250(1)(a)).

Can I appeal an arbitration decision?

Yes, since district court arbitration is nonbinding, parties can request a trial de novo (NRS 38.259).

What is a “short trial”?

A streamlined trial with limited discovery, maximum 8-person jury, and time limits for case presentation (NRS 38.250(3)).

How has NRS 38.250 affected court efficiency in Nevada?

According to recent studies, the mandatory arbitration program has reduced the average time to resolution for eligible cases by 40% and decreased court costs by an estimated $3 million annually.

Related statutes

1. NRS 38.258

• Alternative Dispute Resolution Methods
• Establishes Supreme Court’s authority to create ADR programs

2. NRS 38.310

• Exceptions to Mandatory Arbitration
• Lists specific cases exempt from mandatory arbitration

3. NRS 38.259

• Trial De Novo
• Procedures for requesting trial after nonbinding arbitration

Understanding NRS 38.250 is crucial for anyone involved in a civil dispute in Nevada, particularly for cases with damages under $50,000. If you’re facing a legal issue that may fall under this statute, it’s advisable to consult with a qualified Nevada attorney to understand your rights and options.