Virgin Valley Water Dist. v. Paradise Canyon, LLC

Summary

The Nevada Supreme Court held that the water lease unambiguously gave Virgin Valley Water District sole and absolute discretion to set the rental rate after January 1, 2020, and that the implied covenant of good faith and fair dealing could not alter that express allocation of discretion. It affirmed the portions of the judgment concerning beneficial use and other unchallenged matters, but reversed the portions resting on the jury's contrary contract interpretation and remanded. The court also held that the trial court improperly treated disputed facts as judicially established, admitted an irrelevant and prejudicial letter, and imposed fundamentally unfair trial-time restrictions.