Nevada § 116.31088 - Meetings regarding civil actions; requirements for commencing or ratifying certain civil actions; right of units' owners to request dismissal of certain civil actions; disclosure of terms and conditions of settlements

§ 116.31088. Meetings regarding civil actions; requirements for commencing or ratifying certain civil actions; right of units' owners to request dismissal of certain civil actions; disclosure of terms and conditions of settlements

1. The association shall provide written notice to each unit's owner of a meeting

at which the commencement of a civil action is to be considered at least 21 calendar

days before the date of the meeting. Except as otherwise provided in this subsection, the association may commence a

civil action only upon a vote or written agreement of the owners of units to which

at least a majority of the votes of the members of the association are allocated. The provisions of this subsection do not apply to a civil action that is commenced: (a) To enforce the payment of an assessment; (b) To enforce the declaration, bylaws or rules of the association; (c) To enforce a contract with a vendor; (d) To proceed with a counterclaim; or (e) To protect the health, safety and welfare of the members of the association. If a civil action is commenced pursuant to this paragraph without the required vote

or agreement, the action must be ratified within 90 days after the commencement of

the action by a vote or written agreement of the owners of the units to which at least

a majority of votes of the members of the association are allocated. If the association, after making a good faith effort, cannot obtain the required

vote or agreement to commence or ratify such a civil action, the association may thereafter

seek to dismiss the action without prejudice for that reason only if a vote or written

agreement of the owners of the units to which at least a majority of votes of the

members of the association are allocated was obtained at the time the approval to

commence or ratify the action was sought. 2. At least 10 days before an association commences or seeks to ratify the commencement

of a civil action on which the owners of units are entitled to vote pursuant to subsection

1, the association shall provide a written statement to all the units' owners that

includes: (a) A reasonable estimate of the costs of the civil action, including reasonable attorney's

fees; (b) An explanation of the potential benefits of the civil action and the potential

adverse consequences if the association does not commence the action or if the outcome

of the action is not favorable to the association; and (c) All disclosures that are required to be made upon the sale of the property. 3. No person other than a unit's owner may request the dismissal of a civil action

commenced by the association on the ground that the association failed to comply with

any provision of this section. 4. If any civil action in which the association is a party is settled, the executive

board shall disclose the terms and conditions of the settlement at the next regularly

scheduled meeting of the executive board after the settlement has been reached. The executive board may not approve a settlement which contains any terms and conditions

that would prevent the executive board from complying with the provisions of this

subsection.