Advanced Check v. State, Dept. of Business and Industry C/W 61538 ( 2014 )


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  •                 and interest. In accordance with that opinion, we affirm the district court's
    order granting declaratory relief.
    Additionally, the appellant, Advanced Check Cashing &
    Payday Loan (ACC), argues that the doctrine of judicial estoppel prevents
    the respondent, Nevada's Department of Business and Industry, Financial
    Institutions Division (FID), from asserting its proffered interpretation of
    NRS 604A.425 because it had previously enforced the statute such that the
    25-percent cap only included principal. This argument lacks merit.
    "Whether judicial estoppel applies is a question of law subject to de novo
    review. NOLM, LLC v. Cnty. of Clark,      
    120 Nev. 736
    , 743, 
    100 P.3d 658
    ,
    663 (2004). Judicial estoppel requires, inter alia, that a party took
    contrary positions "in judicial or quasi-judicial administrative
    proceedings."   
    Id.
     (internal quotation marks omitted). Although the FID
    appears to have adopted its current interpretation a number of years after
    the Legislature enacted NRS 604A.425, ACC's argument is undermined by
    the lack of any actual judicial or quasi-judicial proceedings wherein the
    FID asserted a contrary position. Accordingly, the doctrine of judicial
    estoppel does not apply.
    ACC also argues that the district court abused its discretion by
    refusing to grant relief from the final judgment under NRCP 60(b). ACC
    argues it was entitled to such relief because the FID failed to acknowledge
    past efforts to change the Nevada Administrative Code and notify other
    lenders of pending litigation about the proper interpretation of the 25-
    percent cap. Again, we disagree.
    This court will not upset a district court's decision on an NRCP
    60(b) motion absent an abuse of discretion.     Stoecklein v. Johnson Elec.,
    Inc., 
    109 Nev. 268
    , 271, 
    849 P.2d 305
    , 307 (1993). NRCP 60(b)(3) provides
    that a district court has the discretion to provide relief from a final
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    judgment on the basis of "fraud . . . , misrepresentation or other
    misconduct of an adverse party."
    Federal court decisions interpreting the federal civil procedure
    rules provide guidance on the application of the fraud provision of NRCP
    60(b). See Nelson v. Heer, 
    121 Nev. 832
    , 834, 
    122 P.3d 1252
    , 1253 (2005)
    (recognizing that federal cases are persuasive authority in interpreting the
    Nevada Rules of Civil Procedure). "To prevail, the moving party must
    prove by clear and convincing evidence that the verdict was obtained
    through fraud, misrepresentation, or other misconduct and the conduct
    complained of prevented the losing party from fully and fairly presenting
    the defense."   De Saracho v. Custom Food Mach., Inc., 
    206 F.3d 874
    , 880
    (9th Cir. 2000); see also Fierle v. Perez, 
    125 Nev. 728
    , 733-34 n.3, 
    219 P.3d 906
    , 909-10 n.3 (2009) (concluding that a party failed to demonstrate fraud
    pursuant to NRCP 60(b)(3) by clear and convincing evidence), overruled on
    other grounds by Egan v. Chambers, 129 Nev. „ 
    299 P.3d 364
    , 365
    (2013). Fraud must "not be discoverable by due diligence before or during
    the proceeding."   Pac. & Arctic Ry. & Navigation Co. v. United Transp.
    Union, 
    952 F.2d 1144
    , 1148 (9th Cir. 1991).
    Here, ACC argues that the district court was unable to make a
    decision based on a complete record because of the FID's failure to mention
    its three prior attempts to promulgate a regulation that included its
    favored interpretation of NRS 604A.425. We reject this argument for two
    reasons.
    First, it is unclear how the FID's previous attempts to
    promulgate the regulation affected the district court's statutory
    interpretation of NRS 604A.425, as the proposed regulation has no bearing
    on whether the statute is ambiguous or the Legislature's intent.    See, e.g.,
    Estate of Smith v. Mahoney's Silver Nugget, Inc.,    127 Nev. , 265
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    P.3d 688, 690 (2011) (setting forth the principles of statutory
    interpretation). Thus, the FID's failure to mention these attempts,
    whether intentional or not, does not appear to have "prevented the losing
    party from fully and fairly presenting the defense." De Saracho, 
    206 F.3d at 880
    .
    Second, the proposed regulations were publicly available and
    subject to a notice and comment period, thus, the alleged fraud was
    "discoverable by due diligence." Pac. & Arctic Ry., 
    952 F.2d at 1148
    .
    ACC also notes that the FID did not tell other affected
    businesses about the pending litigation between ACC and the FID
    regarding the proper interpretation of the 25-percent cap. ACC does not
    argue that other lenders were necessary parties to the litigation under
    NRCP 19(a), nor does it cite any authority that supports its argument that
    the FID had a duty to provide notice of its litigation to other businesses.
    Thus, the district court did not abuse its discretion in refusing to grant
    ACC's NRCP 60(b) motion on the basis of fraud, misrepresentation, or
    misconduct.
    Accordingly, we
    ORDER the judgment of the district court AFFIRMED.
    Gibbons
    J.                                      J.
    Hardesty
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    , J.
    P.Marrn.:7111Li-Jub
    ,
    Cherry
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    cc: Hon. James Todd Russell, District Judge
    Mark J. Krueger
    Holland & Hart LLP/Las Vegas
    Attorney General/Las Vegas
    Carson City Clerk
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