Motion to bring a Class Action Lawsuit Against Nevada Association Services, Inc. Denied
Homeowners Nicholas Otomo and Timothy McCright were seeking to certify a class action lawsuit naming Nevada Association Services, Inc.
The plaintiffs were challenging NAS, Inc.'s business practices to collect delinquent HOA assessments.
The court denied the Plaintiffs' motion for class certification, finding a lack of predominance of common interests of fact and law.
The plaintiffs argued in their motion that they had met the burden of law and that their suit met the requirements for filing as a class action suit.
The judge ruled that the required elements needed for a class action lawsuit, including numerosity, commonality and typicality, were not met.
The court disagreed with the plaintiffs' position and ruled that plaintiffs failed to craft a justifiable class.
David Stone of Nevada Association Services, Inc., said , "This is a win for homeowners associations. This ruling against the plaintiff takes away their ability to pursue huge judgments in a class action lawsuit. The courts analyzed why class action lawsuits are not suitable for HOAs. This analysis by the federal court may play a part in decisions on the ongoing investor lawsuits in state court."
Stone said the findings from the federal court could impact related state court cases.
"The impact of the judgments may very well chip away at the lifespan of ongoing state court litigation. The federal court case may provide clarity and guidance to the state court judges, considering legitimacy of the state class action lawsuits."
Nevada Association Services, Inc, (NAS, Inc.) is a licensed collections agency working with community associations throughout Nevada.