CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - FRIDAY, MAY 15, 2026

Nevada’s Mandatory Nonbinding Arbitration Law for Civil Cases is Going Through Changes

Welcome to Nevada sign on road

The newly enacted AB3 overhauls NRS 38.250 in seemingly small, but significant ways.

May 14, 2026
Brandon Wright & Manuel Gurule - Lewis Brisbois

Nevada currently operates an expedited litigation program designed to resolve civil disputes with a value up to $50,000 without incurring the “usual” expense of litigating these disputes. Over time, however, the number of civil cases that have been “exempted” from this program based on the claimed damages exceeding $50,000 has grown dramatically. In response, the Nevada Legislature recently enacted a number of rule changes designed to streamline Nevada’s arbitration process and include more cases. Among these changes are increasing the arbitration “cap” from $50,000 to $100,000.

By way of background, the Nevada’s Court Annexed Arbitration program is a mandatory, non-binding program for civil cases in judicial districts that have county populations of 100,000 or more [1]. Nevada’s Court Annexed Arbitration was born out of NRS 38.250, which was enacted in 1991 and went into effect in the summer of 1992. The newly enacted NRS 38.250 was regarded as a way to address the problem of increased court caseloads while promoting judicial economy and efficiency in civil cases having a probable jury award of less than $25,000 [2]. Initially, cases that were automatically exempt from the program included class actions, medical malpractice disputes, divorce proceedings, and other domestic relations matters [3].

Reprinted courtesy of Brandon Wright, Lewis Brisbois and Manuel Gurule, Lewis Brisbois

Mr. Wright may be contacted at Brandon.Wright@lewisbrisbois.com
Mr. Gurule may be contacted at Manuel.Gurule@lewisbrisbois.com


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