Waddell v. L.V.R.V. Inc. - 122 Nev. 15, 125 P.3d 1160 (2006)

Rule:

Under Nev. Rev. Stat. § 104.2608(2), revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. The statute further provides that revocation is not effective until the buyer notifies the seller of it. The Supreme Court of Nevada has never before determined a reasonable timeline for revocation of acceptance. However, other jurisdictions have held that the reasonable time determination depends upon the nature, purpose and circumstances of the transaction. The reasonable time determination is generally considered to be an issue of fact for the trial court.

Facts:

Respondent/cross-appellant L.V.R.V. Inc., D/B/A Wheeler's Las Vegas RV (Wheeler's) sold a 1996 Coachmen Santara motor home (the RV) to appellants/cross-respondents Arthur R. Waddell and Roswitha M. Waddell (the Waddells). The Waddells noticed numerous problems with the RV and "continually" had to return it to Wheeler's service department for repairs. Eventually, the Waddells stopped attempting to have Wheeler's make repairs and filed a complaint seeking to revoke their acceptance of the RV or, in the alternative, money damages. Wheeler's answered the complaint and filed a third-party complaint seeking indemnification from respondent Coachmen Recreational Vehicle Company, Inc. (Coachmen). After a bench trial, the district court granted judgment in favor of the Waddells and Coachmen. Wheelers argued that the district court err in allowing the Waddells to revoke the acceptance of the contract because the former did not attempt to revoke within a reasonable time after purchasing the RV.

Issue:

Was it an error to allow the Waddells to revoke the acceptance of the contract on the basis that they did not attempt to revoke within a reasonable time after purchasing the RV? 

Answer:

No.

Conclusion:

The court noted that under NRS 104.2608(2), revocation of acceptance must occur within a reasonable time after the buyer discovered or should have discovered the ground for it and before any substantial change in condition of the goods which was not caused by their own defects. In this case, the court held that the Waddells were entitled to revoke their acceptance since they notified Wheeler's of their intent to revoke within a reasonable time. Moreover, the Waddells gave Wheeler's several opportunities to repair the defects before revoking their acceptance. Because Wheeler's was unable to repair the defects after a total of seven months, the Waddells were entitled to revoke their acceptance, notwithstanding Wheeler's good-faith attempts to repair the RV. Also, the reasonable time for revocation was tolled during the seven months that Wheeler's kept the RV and attempted to repair the defects. Accordingly, the district court's determination was supported by substantial evidence and was not clearly erroneous.