AB 3 — Revises provisions relating to alternative dispute resolution. (BDR 3-472)

(ReprintedAssembly withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT A.B.

33–Committee Aon SSEMBLYJudiciary BCHAPTER.......... ILLN O.

3–COMMITTEE ON JUDICIARY (ON BEHALF OF THE N EVADA SUPREME C OURT ) PREFILED SEPTEMBER 27, 2024 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to alternative dispute resolution.

(BDR 3-472) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Section of this bill makes a conforming change to reflect that the monetary threshold for mandatory nonbinding arbitration is increased to $100,000 per plaintiff bysholdby sectExisting law requires the Supreme Court to adopt rules to provide for sectionthe 1.5.establishment of a program of arbitration, and such rules must include, for example:

Existing(1) lawprovisions requiresfor the Supremepayment Courtof fees to adoptan rulesarbitrator who is appointed to providehear fora thecase establishmentand who must be compensated at a rate of $100 per hour, to a programmaximum of arbitration,$1,000 andper suchcase, rulesunless mustotherwise include,authorized by the arbitration commissioner for example:good cause shown;

(1)(2) provisionsguidelines for the paymentaward of feesattorney’s tofees; an arbitrator who is appointed to hear a case and who must be compensated at a rate of $100 per hour, to a maximum of $1,000 per case, unless otherwise authorized by the arbitration commissioner for of certain types of actions from the program, such as class actions, probate actions and actions involving domestic relations.

and (3) exclusion of certain types of actions from the program, such as class actions, probate actions and actions involving domestic relations.

(1) increaseremove the rateexisting payment of compensationboth forfees anand arbitratorcosts to $150an perarbitrator, hour,which are generally subject to athe certain maximum oflimitations $2,000on percompensation case;required to be established by the rules;

(2) authorize an arbitrator to award to a prevailing party attorney’s fees in an amount not to exceed $15,000, as provided by specific statute or court rule, and costs and interest as provided by specific statute or court rule;

and (3) exclude additional types of actions from the program;program.

andExisting (4)law provideprovides that,that basedthe uponSupreme theCourt amountmay ofauthorize the arbitrationuse award,of asettlement trialconferences anewand afterother analternative arbitrationmethods mustof beresolving conducteddisputes, eitherincluding, inwithout districtlimitation, court or as a short trial.

- *AB3_R1* – 2 – Existing law provides that the Supreme Court may authorize the use of settlement conferences and other alternative methods of resolving disputes, including, without limitation, a short trial.

(NRS 38.258) to Section 3 of this bill provides that if the Supreme Court authorizes the use of a short trial, in addition to any other appropriate provisions, the rules and procedures governing a short trial must authorize the short trial judge to award to the prevailing party attorney’s fees in an amount not to exceed $15,000, as provided by specific staExistingstatute lawor providescourt thatrule. if an action is submitted to arbitration and, after arbitration, a party requests a trial anew before a jury:

(1)Sections the1, written1.5 findingsand made3 bymake thea arbitratorconforming orchange to apply the paneldefinition of arbitratorsthe mustterm be“short admittedtrial” atto trial;the provisions of this bill.

and- (2)83rd theSession court(2025) is– required2 to– giveEXPLANATION a– specificMatter instructionin tobolded theitalics jury.is new;

(NRSmatter 38.259)between Sectionbrackets 4[omitted ofmaterial] thisis billmaterial removesto suchbe requirements.omitted.

term “short trial” to the provisions of this bill.to apply the definition of the THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

38.250 1.

Except as otherwise provided in NRS 38.310:

- *AB3_R1* – 3 – 2.

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- than83rd eightSession persons(2025) and– a3 specified– limit on the amount of time each party may use to present the party’s case.] the amount of time Sec.

(a) Shall establish programs pursuant to paragraphs (a), (b) and (c)(c)(b) May set fees and charge parties for arbitration if the amount in issue exceeds [$50,000] $100,000 per plaintiff, exclusive of subsectionattorney’s 1.fees, interest and court costs.

(b) May set fees and charge parties for arbitration if the amount in issue exceeds [$50,000] $100,000 per plaintiff, exclusive of attorney’s fees, interest and court costs.

-(g) *AB3_R1*Actions –for 4declaratory –relief;jurisdiction; (f) Appeals from courts of limited jurisdiction;

(g) Actions for declaratory relief;

(l)- Actions83rd thatSession present(2025) unusual– circumstances4 that– constitute good cause for removal from the program;program;umstances that constitute (m) Actions in which any of the parties is incarcerated;

(m) Actions in which any of the parties is incarcerated;

(a) Provisions for the payment of fees and costs to an arbitrator who is appointed to hear a case pursuant to the rules.

The rules must provide[provide thatthat] set maximum limitations on the compensation of an arbitrator must[must be compensated at a rate of [$100]$100 $150 per hour, to a maximum of [$1,000]$1,000 $2,000 per case, unless otherwise authorizedauthorized] , except that the limitations may be waived by the arbitration commissionerjudge foror goodarb(b) causeGuidelines shown.[for the] authorizing an arbitrator to award [of attorney’s] to the prevailing party:

(b) Guidelines [for the] authorizing an arbitrator to award [of attorney’s] to the prevailing party:

and (2) Fees,Costs costs and interest in an amount not to exceed $15,000, as provided by specific statute or court rule.

The rules must provide that if the arbitration award:

(1) Exceeds $50,000, exclusive of attorney’s fees, costs and interest, the trial anew must be conducted in the district court.