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Nelson v. Heer

Nevada Supreme Court
163 P.3d 420 (2007)


In 1998, a cabin owned by Judy Nelson (defendant) was flooded, causing extensive water damage. Nelson made various repairs, including replacement of floor and ceiling tiles, insulation, and appliances. Years later, Nelson listed the cabin for sale, and completed a Seller’s Real Property Disclosure Form, which did not disclose the 1998 damage. Scott Heer (plaintiff) purchased the cabin after viewing it various times and obtaining several inspections. Heer’s homeowner’s insurance company thereafter cancelled Heer’s policy and renewed it at a higher premium, citing the 1998 damage. The new policy did not cover mold claims. Heer engaged a mold service to test the cabin, uncovering elevated levels of mold. A licensed contractor provided an estimate of more than $80,000 for mold abatement. Heer brought suit against Nelson, claiming breach of contract, intentional misrepresentation, breach of the implied covenant of good faith and fair dealing, and negligent misrepresentation. The jury found in Heer’s favor, awarding damages. The district court entered judgment consistent with the jury’s determination. Nelson appealed.

Rule of Law


Holding and Reasoning (Hardesty, J.)

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