First Interstate Bank of Nevada v. Shields

In First Interstate Bank of Nevada v. Shields (Nev. 1986) 102 Nev. 616, 730 P.2d 429, the Nevada Supreme Court held the fair market value protections of that state's antideficiency laws were directly applicable to guarantors. Reexamining the provisions of its antideficiency scheme, the court noted it was "now convinced that it is unsound to deny guarantors the benefits of such legislation." (Id. at p. 431.) Shields grants guarantors the right to a fair market value hearing to prevent lenders from: (1) seeking a double recovery; (2) circumventing legislative purposes; (3) manipulating sources of recovery to obtain sums from guarantors greater than the balance of the debt due; (4) unfairly enriching themselves at the expense of guarantors; and (5) thwarting general principles of guaranty law. (Ibid).