What is the Law on a ‘Demand for Security Costs’ in Personal Injury Cases in Nevada?

A little known fact in Nevada, is that when an injured party lives out of state, the at-fault party is allowed to make a demand for “security costs” in Las Vegas personal injury cases. There is no similar law for Nevada residents. The law allowing this is NRS 18.130 and provides in full:

NRS 18.130  When plaintiff may be required to secure costs; affidavits of sureties; dismissal of action if undertaking not filed.
      1.  When a plaintiff in an action resides out of the State, or is a foreign corporation, security for the costs and charges which may be awarded against such plaintiff may be required by the defendant, by the filing and service on plaintiff of a written demand therefor within the time limited for answering the complaint. When so required, all proceedings in the action shall be stayed until an undertaking, executed by two or more persons, be filed with the clerk, to the effect that they will pay such costs and charges as may be awarded against the plaintiff by judgment, or in the progress of the action, not exceeding the sum of $500; or in lieu of such undertaking, the plaintiff may deposit $500, lawful money, with the clerk of the court, subject to the same conditions as required for the undertaking. The plaintiff, upon filing the undertaking or depositing the security, shall notify the defendant of such filing or deposit, and the defendant, after receipt of such notice, shall have 10 days or the period allowed under N.R.C.P. 12(a), whichever is longer, in which to answer or otherwise plead to the complaint.
      2.  A new or an additional undertaking may be ordered by the court or judge upon proof that the original undertaking is insufficient security, and proceedings in the action stayed until such new or additional undertaking be executed and filed.
      3.  Each of the sureties on the undertaking mentioned in subsection 1 shall annex to the same an affidavit that the surety is a resident and householder, or freeholder, within the county and is worth double the amount specified in the undertaking, over and above all the surety’s just debts and liabilities, exclusive of property exempt from execution.
      4.  After the lapse of 30 days from the service of notice that security is required, or of an order for new or additional security, upon proof thereof, and that no undertaking as required has been filed, the court or judge may order the action to be dismissed.

The law limits the initial amount requested, to be $500. Costs such as these are for photocopies, runner services, etc. It is important to note that this law does NOT apply to Nevada residents. It is only for persons who were injured in the state of Nevada, but reside out of state. The only way for a Nevada resident to pay costs, is if they were unsuccessful in their case.  For example, if a jury found the injured party responsible for causing the car accident, which resulted in injuries. However, it is important to note that most personal injury claims in Nevada ARE successful.

Next time, we will discuss proving lost wages in Las Vegas personal injury cases.