130 Nev., Advance Opinion 28
IN THE SUPREME COURT OF THE STATE OF NEVADA
HIROKO ALCANTARA, AS PARENT No. 60566
AND GUARDIAN ON BEHALF OF
SARAH ALCANTARA,
Appellant, FILED
vs.
APR 0 3 2014
WAL-MART STORES, INC., A
IE K. LINDEMAN
FOREIGN CORPORATION, •
CLEW( ALIVIAEW76qUR
Respondent. BY
CHIEF Dkpu-ry CLERK
Appeal from a district court order, certified as final under
NRCP 54(b), dismissing Wal-Mart Stores, Inc., from a torts action on
claim preclusion grounds. Eighth Judicial District Court, Clark County;
Joanna Kishner, Judge.
Affirmed.
Law Offices of Mont E Tanner and Mont E. Tanner, Las Vegas,
for Appellant.
Phillips, Spallas & Angstadt, LLC, and Brenda H. Entzminger, Las Vegas,
for Respondent.
BEFORE HARDESTY, PARRAGUIRRE and CHERRY, JJ.
OPINION
By the Court, CHERRY, J.:
This appeal concerns the application of claim and issue
preclusion to actions brought under different subsections of Nevada's
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wrongful death statute, NRS 41.085. In the underlying action, an heir
asserted a wrongful-death claim against respondent Wal-Mart Stores, Inc.,
under NRS 41.085(4), even though the decedent's estate had previously
attempted, but failed, to succeed on a wrongful death claim against Wal-
Mart under NRS 41.085(5). Wal-Mart moved to dismiss the heir's action
on claim and issue preclusion grounds, and the district court granted the
motion based on claim preclusion. On appeal, we affirm this dismissal,
albeit on issue preclusion grounds. We follow the reasoning in Evans v.
Celotex Corp., 238 Cal. Rptr. 259, 260 (Ct. App. 1987), and conclude that
the heir is barred from relitigating the issue of Wal-Mart's negligence
because it has already been established, in the case brought by the estate
on her behalf, that Wal-Mart was not negligent and, thus, not liable. In
resolving this appeal, we adopt the Restatement (Second) of Judgments'
explanation of what constitutes adequate representationS for privity
purposes.
FACTS AND PROCEDURAL HISTORY
Appellant Hiroko Alcantara, on behalf of her daughter Sarah,
filed a wrongful death action under NRS 41.085 against Wal-Mart and
other defendants after Sarah's father was fatally assaulted in a Wal-Mart
parking lot. Wal-Mart moved to dismiss the action on claim and issue
preclusion grounds, asserting that the decedent's estate, along with three
of the decedent's heirs (Sarah's half-brothers), had already filed a wrongful
death lawsuit against Wal-Mart and lost. In particular, Wal-Mart pointed
out that, in the prior action, the jury had returned a special verdict finding
that Wal-Mart was not negligent. The district court granted the motion to
dismiss Alcantara's action against Wal-Mart with prejudice, determining
that claim preclusion barred the case. Although claims against other
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defendants remained pending, the court certified the dismissal order as
final under NRCP 54(b), and this appeal followed.
DISCUSSION
We rigorously review a district court order granting an NRCP
12(b)(5) motion to dismiss, accepting all of the plaintiffs factual
allegations as true and drawing every reasonable inference in the
plaintiffs favor to determine whether the allegations are sufficient to state
a claim for relief. Buzz Stew, L.L.C. v. City of N. Las Vegas, 124 Nev. 224,
227-28, 181 P.3d 670, 672 (2008). A complaint should be dismissed for
failure to state a claim "only if it appears beyond a doubt that [the
plaintiff] could prove no set of facts, which, if true, would entitle [the
plaintiff] to relief." Id. at 228, 181 P.3d at 672. We review a district
court's conclusions of law, including whether claim or issue preclusion
applies, de novo. Id.; C. C. Wallace, Inc. v. Eighth Judicial Dist. Court, 127
Nev. , 262 P.3d 1135, 1137 (2011).
Statutory framework
The NRS 41.085 statutory scheme creates two separate
wrongful death claims, one belonging to the heirs of the decedent and the
otherS belonging to the personal representative of the decedent, with
neither being able to pursue the other's separate claim.' See Alsenz v.
1 NRS 41.085 provides, in relevant part, that
• 2. When the death of any person, whether
or not a minor, is caused by the wrongful act or
neglect of another, the heirs of the decedent and
the personal representatives of the decedent may
each maintain an action for damages against the
person who caused the death, or if the wrongdoer
is dead, against the wrongdoer's personal
continued on next page...
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Clark Cnty. Sch. Dist., 109 Nev. 1062, 1064, 864 P.2d 285, 286 (1993).
NRS 41.085(2) and (3), respectively, provide that "the heirs of the decedent
and the personal representatives of the decedent may each maintain an
action for damages" and that the causes of action "which arose out of the
same wrongful act or neglect may be joined." (Emphases added.) See
Tarango v. State Indus. Ins. Sys., 117 Nev. 444, 451 n.20, 25 P.3d 175, 180
n.20 (2001) (explaining that, generally, in statutes, "may" is permissive,
while "shall" is mandatory). NRS 41.085(4) further explains that the heirs
may recover damages for grief and sorrow, loss of probable support,
companionship, and the pain and suffering of the decedent, which may not
be used to pay the decedent's debt, while NRS 41.085(5) explains that the
estate may recover special damages, including those for medical and
funeral expenses, and any penalties that the decedent would have been
able to recover, which are liable to pay the decedent's debt.
Whether claim preclusion bars Alcantara's claims
Alcantara contends that, because NRS 41.085 provides for
separate claims, the district court erroneously applied claim preclusion to
this case. Broadly speaking, claim preclusion bars parties and their
privies from litigating claims that were or could have been brought in a
...continued
representatives, whether the wrongdoer died
before or after the death of the person injured by
the wrongdoer. . . .
3. An action brought by the heirs of a
decedent pursuant to subsection 2 and the cause of
action of that decedent brought or maintained by
the decedent's personal representatives which
arose out of the same wrongful act or neglect may
be joined.
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prior action concerning the same controversy. Five Star Capital Corp. v.
Ruby, 124 Nev. 1048, 1054, 194 P.3d 709, 712-13 (2008). This doctrine is
designed to preserve scarce judicial resources and to prevent vexation and
undue expense to parties. Univ. of Nev. v. Tarkanian, 110 Nev. 581, 598,
879 P.2d 1180, 1191 (1994). It is premised on fairness to the defendant
and sound judicial administration by acknowledging that litigation over a
specific controversy must come to an end, even "if the plaintiff has failed
to avail himself of opportunities to pursue his remedies in the first
proceeding.' Five Star, 124 Nev. at 1058, 194 P.3d at 715 (quoting
Restatement (Second) of Judgments § 19 cmt. a (1982)).
Claim preclusion applies if (1) the same parties or their privies
are involved in both cases, (2) a valid final judgment has been entered,
and (3) "the subsequent action is based on the same claims or any part of
them that were or could have been brought in the first case." Five Star,
124 Nev. at 1054, 194 P.3d at 713. Because it resolves the issue, we start
with the third prong.
Generally, "all claims 'based on the same facts and alleged
wrongful conduct' that were or could have been brought in the first
proceeding are subject to claim preclusion." G.C. Wallace, 127 Nev. at ,
262 P.3d at 1139 (quoting Five Star, 124 Nev. at 1058, 194 P.3d at 715).
Here, however, the NRS 41.085 statutory scheme clearly creates separate
wrongful death claims, one belonging to the decedent's heirs and the other
belonging to the decedent's personal representative. As the claim of the
personal representative, or the estate, under NRS 41.085(5) could not
include Alcantara's claim under NRS 41.085(4), the two claims are
separate and thus fail to meet the requirement that the claims in the
second case be the same as those that were or could have been brought in
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the first case. See Restatement (Second) of Judgments § 24 cmt. a (1982)
("Ulf more than one party has a right to relief arising out of a single
transaction, each such party has a separate claim for purposes of merger
and bar."). Accordingly, while the claims made by the estate and its heirs,
Alcantara included, all arose from the death of the decedent, claim
preclusion does not apply. 2 See S. Cal. Edison v. First Judicial Dist.
Court, 127 Nev. , n.5, 255 P.3d 231, 237 n.5 (2011) ("[C]laim
preclusion could not be used to contravene the Legislature's policy
decision."). This does not end our inquiry, however, as Wal-Mart
alternatively asserts that issue preclusion applies to preclude this action.
Whether issue preclusion bars Alcantara's claims
Wal-Mart argues that issue preclusion provides this court
with an independent basis for affirming the dismissal. Because "[a]
respondent may,. . . without cross-appealing, advance any argument in
support of the judgment even if the district court rejected or did not
consider the argument," we address this issue. Ford v. Showboat
Operating Co., 110 Nev. 752, 755, 877 P.2d 546, 548 (1994).
A corollary to claim preclusion, issue preclusion is applied to
conserve judicial resources, maintain consistency, and avoid harassment
or oppression of the adverse party. Berkson v. LePome, 126 Nev. ,
245 P.3d 560, 566 (2010). For this doctrine to apply, the following four
elements must be met:
"(1) the issue decided in the prior litigation must
be identical to the issue presented in the current
2Wal-Mart does not raise an argument that preclusion can be based
on the relationship between Alcantara and the heirs who were involved in
the prior action; therefore, we do not address this issue.
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action; (2) the initial ruling must have been on the
merits and have become final; ... (3) the party
against whom the judgment is asserted must have
been a party or in privity with a party to the prior
litigation"; and (4) the issue was actually and
necessarily litigated.
Five Star, 124 Nev. at 1055, 194 P.3d at 713 (alteration in original)
(quoting Tarkanian, 110 Nev. at 598, 879 P.2d at 1191). As previously
explained, the prior case was finally resolved on the merits. We thus turn
to the remaining issue preclusion factors same issues, same parties, and
actually and necessarily litigated.
The same issues
"For 'issue preclusion to attach, the issue decided in the prior
[proceeding] must be identical to the issue presented in the current
[proceeding]." Holt v. Regional Tr. Servs. Corp., 127 Nev. „ 266
P.3d 602, 605 (2011) (alterations in original) (quoting Bedrock Valley
Ranch v. Washoe Cnty., 127 Nev. „ 254 P.3d 641, 646 (2011)). In
challenging whether the issues are the same, Alcantara asserts that there
are significant differences between the legal theories asserted in the two
actions based on her argument that Wal-Mart had a nondelegable duty to
provide safe premises, an argument that, she asserts, was not made in the
prior case by the estate.
"[A] nondelegable duty imposes upon the principal not merely
an obligation to exercise care in his own activities, but to answer for the
well-being of those persons to whom the duty runs." Gen. Bldg.
Contractors Ass'n, Inc. v. Pennsylvania, 458 U.S. 375, 395 (1982) (citing
Restatement (Second) of Agency § 214 (1958)) (finding no nondelegable
duty under 42 U.S.C. § 1981). Even the use of utmost care in hiring and
delegating the duty to an independent contractor, such as a security
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company, will not discharge the duty. Id.; Rockwell v. Sun Harbor Budget
Suites, 112 Nev. 1217, 1223, 925 P.2d 1175, 1179 (1996) ("[W]here a
property owner hires security personnel to protect his or her premises and
patrons, that property owner has a personal and nondelegable duty to
provide responsible security personnel. . . . even if the property owner
engaged a third party to hire the security personnel.").
Although Alcantara's complaint attempted to plead
nondelegable duty as a separate cause of action, it is not an independent
cause of action, but instead one way to establish the duty requirement for
proving negligence. See Armiger v. Associated Outdoor Clubs, Inc., 48 So.
3d 864, 869 (Fla. Dist. Ct. App. 2010) ("[A] claim based on the breach of a
nondelegable duty is [not] a separate and distinct cause of action from a
cause of action based on what [a party] termed 'active' or 'direct'
negligence."). Thus, her attempt at asserting a nondelegable duty does not
preclude application of issue preclusion, as the issue of Wal-Mart's
liability based on negligence remains the same. Issue preclusion cannot
be avoided by attempting to raise a new legal or factual argument that
involves the same ultimate issue previously decided in the prior case. See
LaForge v. State, Univ. and Cmty. Coll. Sys. of Nev., 116 Nev. 415, 420,
997 P.2d 130, 134 (2000) ("Issue preclusion may apply 'even though the
causes of action are substantially different, if the same fact issue is
presented." (quoting Clark v. Clark, 80 Nev. 52, 56, 389 P.2d 69, 71
(1964))); Paulo v. Holder, 669 F.3d 911, 918 (9th Cir. 2011) (stating that
"Ulf a party could avoid issue preclusion by finding some argument it
failed to raise in the previous litigation, the bar on successive litigation
would be seriously undermined"); Restatement (Second) of Judgments, §
27 cmt. c (1982). The issue here of Wal-Mart's negligence for the
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decedent's death is the same in both cases. The nondelegable duty is not
separate and distinct from the negligence determination—it is based on
the same facts. Because the issues are the same, we conclude that this
element is met.
The same parties or their privies
"Issue preclusion can only be used against a party whose due
process rights have been met by virtue of that party having been a party
or in privity with a party in the prior litigation." Bower v. Harrah's
Laughlin, Inc., 125 Nev. 470, 481, 215 P.3d 709, 718 (2009). The district
court addressed the privity requirement in the context of its claim
preclusion analysis and determined that privity existed between the estate
and Alcantara because the estate adequately represented Alcantara's
interest in the prior lawsuit, as provided in Restatement (Second) of
Judgments section 41. The Restatement (Second) of Judgments section
41, provides that
(1) A person who is not a party to an action but
who is represented by a party is bound by and
entitled to the benefits of a judgment as though he
were a party. A person is represented by a party
who is:
(a) The trustee of an estate or interest of
which the person is a beneficiary; or
(b) Invested by the person with authority to
represent him in an action; or
(c) The executor, administrator, guardian,
conservator, or similar fiduciary manager of an
interest of which the person is a beneficiary; or
(d) An official or agency invested by law with
authority to represent the person's interests; or
(e) The representative of a class of persons
similarly situated, designated as such with the
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approval of the court, of which the person is a
member.
(2) A person represented by a party to an action is
bound by the judgment even though the person
himself does not have notice of the action, is not
served with process, or is not subject to service of
process.
Exceptions to this general rule are stated in § 42.
(Emphasis added.)
Alcantara argues that she is not in privity with the estate and
that the district court's reliance on the Restatement (Second) of
Judgments section 41 for an example of privity is in error, as that section
has not been adopted by this court. Wal-Mart counters that Alcantara, as
a beneficiary of the estate, was adequately represented in the estate's
litigation of Wal-Mart's alleged negligence in the prior action, rendering
her in privity with the estate and subject to preclusion on that issue. Wal-
Mart points out that Alcantara fails to explain why her parallel interests
with the estate would alter the outcome, as regardless of who brought the
issue before the court, the estate on her behalf failed to demonstrate
negligence on Wal-Mart's part.
This court has not previously specifically addressed whether
privity can be established through adequate representation as outlined in
the Restatement (Second) of Judgments section 41. We take this
opportunity to adopt the Restatement (Second) of Judgments section 41's
examples of privity that arises when a plaintiffs interests are being
represented by someone else. We do so because of our long-standing
reliance on the Restatement (Second) of Judgments in the issue and claim
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preclusion context3 and because it provides a clear framework for
determining whether privity exists under an adequate representation
analysis.
In applying the Restatement section 41(1)(c) to this case, we
conclude that Alcantara is in privity with the estate. While Alcantara was
not a party to the prior action, the estate was representing Alcantara's
beneficiary interests in the wrongful death recovery. There is no dispute
here as to Alcantara's beneficiary status—she was listed as a beneficiary
under the petition for administration. Alcantara was bound to the
judgment because the estate represented her as an heir of the estate in the
estate's action. This representation is sufficient for privity. See Young v.
Shore, 588 F. Supp. 2d 544, 548-49 (D. Del. 2008) (relying on Restatement
(Second) of Judgments § 41 (2008), to determine that because plaintiff is a
beneficiary of the estate, she was in privity with the estate for purposes of
the prior action and issue preclusion barred the subsequent action).
Moreover, since the issue for determining relief under NRS 41.085(4) and
3 See,i.e., Frei v. Goodsell, 129 Nev. „ 305 P.3d 70, 72 (2013)
(relying on Restatement (Second) of Judgments § 27 cmt. d (1982)); G.C.
Wallace, Inc. v. Eighth Judicial Dist. Court, 127 Nev. „ 262 P.3d
1135, 1138-39 (2011) (relying on Restatement (Second) of Judgments § 24
cmt. g (1982) and on Restatement (Second) of Judgments § 26(1)(d)
(1982)); Personhood Nev. v. Bristol, 126 Nev. „ 245 P.3d 572, 576
(2010) (relying on Restatement (Second) of Judgments § 28(1) (1982)); In
re Sandoval, 126 Nev. „ 232 P.3d 422, 424 (2010) (relying on
Restatement (Second) of Judgments § 27 (1982)); Bower, 125 Nev. at 481-
82, 215 P.3d at 718 (citing to Restatement (Second) of Judgments § 41
(1982)); Five Star, 124 Nev. at 1054 n.27, 1058 & n.46, 194 P.3d at 713
n.27, 715 & n.46 (relying on Restatement (Second) of Judgments § 19
(1982)).
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NRS 41.085(5) is the same—Wal-Mart's negligence—the estate fully
represented Alcantara's interests as to the issue of negligence.
Although a beneficiary can assert an independent cause of
action from the decedent's estate's claim pursuant to NRS 41.085, as was
the case here, the issue of liability is interrelated because both claims are
based on the same wrong. The estate already represented its
beneficiaries, including Alcantara, as to the determination of liability.
Restatement (Second) of Judgments § 41 (1982). As a result, the privity
requirement is met and, if the other factors are met, issue preclusion may
apply to prevent relitigation of the issue concerning Wal-Mart's liability.
This outcome is further supported by Restatement (Second) of Judgments
section 46(3) and section 47. While these sections involve procedural
scenarios different than this case, as section 46 deals with a situation in
which a decedent brings a claim prior to his or her death and the
beneficiaries then bring a separate claim after the decedent's death and
section 47 involves a situation where after death two separate cases are
brought under a survival statute and a death statute, the circumstances
are sufficiently similar to the present case in regard to determining
whether preclusion should apply. Both section 46(3) and section 47 state
that preclusion will apply to a second case brought by a beneficiary of the
decedent if the prior case brought by the decedent or the decedent's estate
is unsuccessful. See also comment c to both section 46 and section 47.
Accordingly, we determine that the privity element is satisfied here
because the estate already represented Alcantara in the NRS 41.085(5)
suit, of which she was a beneficiary.
Actually and necessarily litigated
The fourth factor concerns whether the issue was actually and
necessarily litigated. "When an issue is properly raised .. . and is
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submitted for determination, . . . the issue is actually litigated." Frei v.
Goodsell, 129 Nev. „ 305 P.3d 70, 72 (2013) (quoting Restatement
(Second) of Judgments § 27 cmt. d (1982)). Whether the issue was
necessarily litigated turns on whether 'the common issue
was . . . necessary to the judgment in the earlier suit." Id. (quoting
Tarkanian, 110 Nev. at 599, 879 P.2d at 1191. Resolving whether Wal-
Mart was negligent was necessary to determine whether Wal-Mart was
liable for the decedent's death in the previous case. As the previous case
was determined on the merits, it is clear that the issue of Wal-Mart's
negligence was actually and necessarily litigated in the prior action.
Based on the foregoing, we conclude that issue preclusion can
apply to prevent Alcantara's lawsuit against Wal-Mart, as each of the
necessary factors are met This conclusion is supported by the analysis set
forth in Evans v. Celotex Corp., 238 Cal. Rptr. 259, 260 (Ct. App. 1987). In
Evans, the decedent's heirs commenced a wrongful death action against a
defendant who had already successfully defended a prior suit related to
asbestosis brought when the decedent was alive. Id. The heirs argued
that the emergence of new facts from, inter alia, the autopsy barred the
application of collateral estoppel, that is, issue preclusion. Id. at 262. The
court determined that because the new evidence "did not establish a
previously undiscovered theory of liability nor did it denote a change in
the parties' legal rights," it did not prevent the application of issue
preclusion. Id. at 263. It explained that "[am!' exception to collateral
estoppel cannot be grounded on the alleged discovery of more persuasive
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evidence. Otherwise, there would be no end to litigation." Id. The court
also rejected the heirs' argument that the issues in their lawsuit were not
the same as those in the prior case, explaining that in both cases recovery
depended on whether the defendant was liable for the injuries. Id. at 261.
Further, the Evans court held that the heirs were in privity with the
decedent, as their claims arose based on the same allegations against the
defendant as the decedent's did, and the decedent adequately represented
the heirs' interest in the prior action. Id. As a result, the court concluded
that issue preclusion applied to bar relitigating the issue of the
defendant's liability.
We follow the reasoning in Evans and determine that the
finding of non-liability in the action brought by the estate bars relitigation
of Wal-Mart's liability here. While the statute allows for the NRS
41.085(4) claims to be brought independently, the issue of negligence on
the part of Wal-Mart was already litigated and a jury determined that
Wal-Mart was not negligent. No new facts or issues arose after the estate
litigated the issue of Wal-Mart's liability. Because the issue of Wal-Mart's
negligence was properly raised in the case brought by the estate, we
conclude that issue preclusion applies to prevent Alcantara from re-
litigating the issue of Wal-Mart's negligence. Therefore, we affirm the
decision of the district court to dismiss this case.
We concur:
,J.
Hardesty Parraguirre
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