2026 Nevada Revised StatutesChapter 38 – Mediation And ArbitrationNRS 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.

Statutory Text

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)

NV Rev Stat § 38.250 – Last Verified February 2026

Plain English Explanation

Nevada law requires that certain civil lawsuits go through a process called nonbinding arbitration before they can proceed further in district court. This applies when someone files a lawsuit for money damages, the dispute happened in Nevada, and the amount being sought is $50,000 or less per person suing. The word “nonbinding” is important here because it means neither side is locked into the outcome. They can still take the case to a full trial if they are unhappy with the arbitration result.

Arbitration is basically a simpler, faster way to resolve a dispute outside of a traditional courtroom. Instead of going straight to a judge or jury, the parties present their case to a neutral third party called an arbitrator.

There is an exception to this requirement. If both sides have already agreed to use a different dispute resolution method, like mediation or a settlement conference, they do not have to go through arbitration. The Nevada Supreme Court has set up several of these alternative options under a related law.

For lawsuits filed in justice court rather than district court, arbitration works a little differently. It is not automatic. The parties can choose to go to binding arbitration or try mediation or a settlement conference, but only if both sides agree to it.

If the parties do decide to make their own agreement about how to handle the dispute, that agreement has some strict requirements. It must be made at the time the dispute actually occurs, not buried in some contract they signed before anything went wrong. It also has to be written down, and both parties need to enter into it willingly and with a clear understanding of what they are agreeing to. Any agreement that skips one of these requirements is considered void, meaning it has no legal effect at all.

The law also defines what a “short trial” means in this context. A short trial is a condensed version of a regular trial that both parties consent to. It limits how much evidence gathering each side can do, caps the jury at no more than eight people, and sets a time limit on how long each side gets to argue their case.

Frequently Asked Questions About NRS 38.250

What is the $50,000 limit in NRS 38.250?

Nevada law requires mandatory nonbinding arbitration for civil lawsuits filed in district court when the amount being sought is $50,000 or less per plaintiff.

This dollar amount does not include attorney’s fees, interest, or court costs. If your claim exceeds $50,000, the mandatory arbitration requirement does not apply and your case can proceed directly through the normal court process.

What happens if I disagree with the arbitration result under NRS 38.250?

Because the arbitration required under this law is nonbinding, neither party is forced to accept the outcome. If you are unhappy with the arbitrator’s decision, you have the right to reject it and request a traditional trial. This is one of the key differences between nonbinding and binding arbitration.

Do both parties have to agree to arbitration under NRS 38.250?

For cases filed in district court that meet the dollar threshold, arbitration is automatic and does not require both parties to agree. However, for cases filed in justice court, both sides must mutually agree before the case can be sent to arbitration or any other alternative dispute resolution method.

Can a contract force me into arbitration before a dispute even happens?

No. Under NRS 38.250, any agreement to use an alternative dispute resolution method must be made at the time the dispute actually arises. It cannot be part of a pre-existing contract signed before the disagreement occurred. It also must be in writing and entered into freely by both parties.

What is the difference between mediation and arbitration under this law?

Arbitration involves a neutral third party who listens to both sides and issues a decision, even if that decision is nonbinding. Mediation is a more collaborative process where a neutral mediator helps both parties work toward their own mutually agreed solution. Under NRS 38.250, mediation is one of several alternative options parties can choose instead of going through arbitration, but both sides must agree to it.

If you believe your case may be subject to mandatory arbitration under NRS 38.250, understanding your rights and options before the process begins can make a real difference in the outcome. Speaking with a licensed Nevada attorney can help you figure out the best path forward for your specific situation.