Dayside Inc. v. Dist. Court

In Dayside Inc. v. Dist. Court, 75 P.3d 384 (Nev. 2003), the court explained Nevada legislation was silent on the issue of whether such lien waivers were effective, and absent a legislative proclamation, the court ruled a prior waiver of a mechanic's lien is not contrary to public policy. Id. at 387. The Nevada court noted, "a waiver provision merely limits the avenues available to a contractor to collect for expended materials or labor in the event the owner fails to pay." Dayside, 75 P.3d at 387. In Nevada, a contractor signed a lien waiver contained in a construction contract. After failing to receive payment, the contractor sought to enforce a mechanic's lien, arguing the waiver provision in the original contract was void because it was against public policy. Id. at 385. The district court granted a partial summary judgment and dismissed the mechanic's lien. The Nevada Supreme Court denied a petition for a writ of mandamus to reverse the partial summary judgment and restore the mechanic's lien, concluding a prior waiver of a mechanic's lien contained in a construction contract is not void as against public policy. Id. at 387-88. The Nevada Supreme Court recognized the split among jurisdictions as to the validity of prior lien waivers contained in construction contracts and whether consideration was required for such a waiver to be effective. Id. at 386-87.