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Jacobson v. Stern

Nevada Supreme Court
605 P.2d 198 (1980)


Nathan Jacobson (defendant) sought the architectural services of Martin Stern (plaintiff) for construction of a hotel and casino, Kings Castle. Stern and Jacobson agreed to a fee of $250,000 for Stern’s services on the project. While Stern was already working on the project, Jacobson ultimately acquired 80 percent of the stock of A.L.W., Inc. Jacobson also formed a corporation called Lake Enterprises Inc., solely owned by Jacobson. Jacobson, as lead investor, and Lake Enterprises, as general partner, formed Kings Castle, Limited Partnership. A.L.W. and Kings Castle, LP were the only two entities to receive or pay money related to the business of Kings Castle hotel and casino. The account used to issue checks to Stern was owned by A.L.W. Stern received four checks totaling $150,000, leaving $100,000 in unpaid fees per the original agreement between Stern and Jacobson. Three of the four checks were not signed by Jacobson. Litigation and a trial ensued. Judgment was entered for Stern. Jacobson appealed to the Nevada Supreme Court, claiming that A.L.W.’s adoption of Jacobson’s contractual obligations to Stern constituted a novation.

Rule of Law


Holding and Reasoning (Per curiam)

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