Judge denies class-action against collection agency

U.S. District Court Judge James Mahan has denied plaintiff’s motion for class-action certification in a lawsuit against Nevada Association Services, a collection agency for homeowners associations.

The court denied the motion Monday, finding a lack of predominance of common interests of fact and law. Mahan ruled that the required elements needed for a class-action lawsuit — including numerosity, commonality and typicality — were not met.

Homeowners Nicholas Otomo and Timothy McCright were seeking class-action status in a lawsuit challenging NAS’ business practices to collect delinquent HOA assessments. The court disagreed with the plaintiffs’ position and ruled that they are “masters of their complaint” and have failed to craft a justifiable class.

“This is a win for homeowners associations,” said David Stone, president of Nevada Association Services. “This analysis by the federal court may play a part in decisions on the ongoing investor lawsuits in state court.”

Stone said he will use the findings from the federal court to “chip away” at other cases.

“The federal court case may very well provide clarity and guidance to the state court judges, considering legitimacy of the state class action lawsuits,” he said.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.