In re Cay Clubs

After Appellants purchased condominiums and engaged in related transactions at the Las Vegas Cay Club resort, Appellants filed suit against dozens of defendants, including Cay Clubs, Jeffrey Aeder, and JDI Loans, LLC and JDI Realty, LLC (together, the JDI entities), alleging that Defendants engaged in wrongdoings while abandoning a plan to improve Las Vegas Cay Club and leaving Appellants with “worthless property.” Appellants claimed that they bought the condominiums on the belief that a partnership between Cay Clubs and the JDI entities existed that would provide the expertise and resources to execute the resort’s transformation. Aeder and the JDI entities successfully moved for summary judgment with respect to their liability under Nev. Rev. Stat. 87.160(1), which codifies the partnership-by-estoppel doctrine. The Supreme Court reversed after clarifying the meaning and application of section 87.160(1), holding that the district court erred in granting summary judgment to the JDI entities with regard to their liability under the partnership-by-estoppel doctrine. View "In re Cay Clubs" on Justia Law