Nevada Supreme Court rules on third party debtor discovery

In Rock Bay v. The Eighth Judicial District Court, 129 Nev. Adv. Op.  21  (2013), the Nevada Supreme Court ruled on discovery of a nonparty’s assets under NRCP 69 (a) to assist in post judgment collection.  The Court adopted the federal standard to allow such discovery  where the goal is to locate concealed or hidden assets of the judgment debtor, but  is not to become a means of harassment of the nonparty.

The court hold such discovery permissible in certain situations;  where the relationship between the judgment debtor and the nonparty is sufficient to raise reasonable doubt about the bon fides of the transfer between them, or where the nonparty is the alter ego of the judgment debtor.

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