Zhang v. Zhang
CourtNevada Supreme Court
Date FiledJune 18, 2026
Docket90509
JudgeStiglich, Cadish, Lee
StatusPublished
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Full Opinion
IN THE SUPREME COURT OF THE STATE OF NEVADA
YANLING ZHANG, No. 90509
Appellant,
vs.
YANHUI ZHANG,
Respondent.
Appeal from a district court order dismissing a complaint in a
business dispute for failure to provide a computation of damages. Eighth
Judicial District Court, Clark County; Anna Albertson, Judge.
Vacated and remanded.
Lin Law Group and Michael M. Lin, Las Vegas,
for Appellant.
Ocampo Wiseman Law and Timothy A. Wiseman, Las Vegas,
for Respondent.
BEFORE THE SUPREME COURT, STIGLICH, CADISH, and LEE, JJ.
OPINION
By the Court, CADISH, J.:
Appellant Yanling Zhang sued her sister, respondent Yanhui
Zhang, to recover funds Yanling contributed toward the purchase of four
investment properties through an alleged joint venture, as well as her share
of the venture’s profits. Finding that Yanling failed to provide an adequate
computation of damages under NRCP 16.1, the district court granted
Yanhui’s motion in limine to exclude all evidence of damages, which in effect
barred Yanling from proving the damages element of her claims. As a
result, the district court dismissed Yanling’s complaint with prejudice,
concluding that there was nothing left to litigate. Because the district
court’s bar on damages evidence effectively operated as a case-terminating
sanction, it was required to analyze the Young v. Johnny Ribeiro Building,
Inc., 106 Nev. 88, 787 P.2d 777 (1990), factors to determine whether such a
sanction was warranted. Thus, although the district court correctly found
that Yanling did not provide the requisite damages computation, the court’s
failure to analyze the Young factors before imposing this sanction was an
abuse of discretion. Accordingly, we vacate and remand.
FACTS AND PROCEDURAL HISTORY
Yanling alleged that she and Yanhui formed a joint venture,
under which Yanling provided $200,000 to Yanhui for the purchase of four
residential properties in Las Vegas with an understanding that they would
run a rental property business together. Yanling believed that she and
Yanhui had an agreement, albeit unwritten, that entitled each to 50% of the
properties’ rental income and/or sales proceeds. But when Yanhui
purchased the four properties, she titled them in her name only. In
addition, Yanhui subsequently sold one of the properties and retained all
the sales proceeds. Thereafter, Yanling attempted to add her name to the
titles through a living trust, and when that failed, Yanling commenced the
underlying lawsuit. Early in the litigation, after Yanhui did not timely
answer the complaint, Yanling entered a default against Yanhui and filed
an application for default judgment. Yanling’s application included a
calculation of her initial investment and claimed entitlement to a 50-
percent share of rental and sale proceeds. Yanhui successfully moved to set
aside the default and then answered the complaint.
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A few months before the scheduled trial on Yanling’s claims for
breach of contract, breach of the implied covenant of good faith and fair
dealing, unjust enrichment, and conversion, and after the close of discovery,
Yanhui filed a motion in limine seeking to preclude evidence of special
damages, arguing that Yanling did not provide a sufficient computation of
damages under NRCP 16.1(a)(1)(A)(iv). At the motion hearing, Yanling
asserted that the computation was disclosed “in the moving papers,” but the
district court expressed concern because it did not have any such disclosures
to review. Indeed, Yanling neither filed a computation of damages with the
court nor attached it to her opposition to the motion in limine. Yanling was
unable to inform the district court when any damages disclosure was
produced but argued that the damages in this case were straightforward.
With the trial date roughly two months out, and lacking a computation from
Yanling to review, the court allowed Yanling one week to provide a
supplemental computation of damages.
The court held a second hearing five days after the deadline for
Yanling’s supplemental computation, at which Yanling acknowledged that
she did not provide the supplemental computation because her expert “just
didn’t have enough time.” The court concluded Yanling failed to act with
diligence in providing a computation of damages. The court then granted
Yanhui’s motion in limine to preclude evidence of special damages and
ordered briefing on whether there was anything left to litigate. Without
moving for reconsideration, Yanling filed a supplemental computation of
damages, eight days after the court-imposed deadline for the supplement.
Yanling argued that even with evidence of special damages excluded, her
claims could nonetheless proceed under a “general damages” theory because
it was clear from the beginning of litigation that the dispute concerned her
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$200,000 investment and the split-profit arrangement from the sale of
and/or rental proceeds from the four houses. At the final calendar call, the
district court rejected Yanling’s arguments, determining that she sought to
recover specific, not general, damages and thus was required to provide a
detailed computation of those alleged damages under NRCP 16.1.
Accordingly, because Yanling had failed to do so, the district court
determined there was nothing left for trial and dismissed Yanling’s
complaint with prejudice. Yanling appeals.
DISCUSSION
The district court did not err in determining Yanling was required to disclose
a computation of damages under NRCP 16.1
Yanling argues that a computation of damages is required only
for special damages and the district court erred by misclassifying all of her
damages as special rather than general damages . In this, Yanling asserts
that she was not required to provide a computation of her “general
damages,” which included “return of her $200,000 investment and fifty
percent of the sale and rental proceeds.” She thus contends that the district
court erred in determining that she was required to make a damages
computation disclosure.
For civil complaints seeking damages, mandatory pretrial
discovery disclosures include “a computation of each category of damages
claimed by the disclosing party.” NRCP 16.1(a)(1)(A)(iv). Yanling sought
damages in her complaint, and thus the plain language of NRCP
16.1(a)(1)(A)(iv) required Yanling to disclose a computation of her claimed
damages. The purpose of this computation is to “enable the defendants to
understand the contours of their potential exposure and make informed
decisions regarding settlement and discovery.” Calvert v. Ellis , No. 2:13-CV-
00464-APG, 2015 WL 631284, at *2 (D. Nev. Feb. 12, 2015), cited with
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approval in Pizarro-Ortega v. Cervantes-Lopez , 133 Nev. 261, 265, 396 P.3d
783, 787 (2017). Unless otherwise agreed or an objection is made, a party
must make initial disclosures within 14 days after the early case conference.
NRCP 16.1(a)(1)(C). And a party is required to supplement disclosures
under NRCP 16.1 at appropriate intervals if they learn that disclosed
information is either incomplete or incorrect. Capanna v. Orth , 134 Nev.
888, 894, 432 P.3d 726, 733 (2018); NRCP 26(e)(1).
Yanling conflates the concept of general damages in personal
injury cases as described in Pizarro-Ortega, 133 Nev. at 265 n.7, 396 P.3d
at 787 n.7, with the definition of general damages in contract cases. 1
Consistent with the drafter’s notes to the 2004 amendment to NRCP 16.1,
which specified that the computation requirement is “intended to apply to
special damages, not general or other intangible damages,” Pizarro-Ortega
clarified that pain-and-suffering damages are a category of general or other
intangible damages that need not be disclosed under NRCP 16.1. Id. That
holding has no import here, where Yanling’s damages are based in contract
and tort theories with tangible, quantifiable damages based on her $200,000
investment and the rental income or sale proceeds generated therefrom.
Accordingly, the district court properly rejected Yanling’s argument that
she was not required to provide a damages computation under NRCP
16.1(a)(1)(A)(iv). See Humphries v. Eighth Jud. Dist. Ct. , 129 Nev. 788, 792,
1Yanling’s proposed definition of general damages, “those that
naturally and foreseeably flow from the breach itself,” is based on a New
York court’s interpretation that is not pertinent here because it concerns
New York law and was not made in the context of addressing damages
disclosure requirements at all. Reads Co., LLC v. Katz , 72 A.D.3d 1054
(N.Y. App. Div. 2010). That case does not negate the requirement under
Nevada law to provide an NRCP 16.1(a) computation of damages when they
are quantifiable.
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312 P.3d 484, 487 (2013) (applying de novo review to the district court’s
interpretation of the Nevada Rules of Civil Procedure) .
Relatedly, the district court properly rejected Yanling’s
argument that her application for default judgment and expert disclosure
satisfied the NRCP 16.1(a)(1)(A)(iv) damages computation disclosure
requirement. These other materials filed and served for other purposes
cannot satisfy NRCP 16.1’s mandatory requirement of a damages
computation independent of other discovery obligations. Moreover, she
failed to provide those materials for the court’s review. As the district court
explained, it could not assess the adequacy of any purported disclosure
without actually reviewing the materials, emphasizing that Yanling was
relying on documents she had not presented to the court. As Yanling did
not attach or otherwise produce those documents in her opposition to the
motion in limine to substantiate her claim that Yanhui had been provided
a computation of damages, the court acted within its discretion in requiring
that Yanling file a supplemental computation to demonstrate compliance
with NRCP 16.1(a)(1)(A)(iv). Despite being given another opportunity to
supply the requisite damages computation on the virtual eve of trial ,
Yanling failed to comply with the court’s directive. On this record, we
discern no abuse of discretion in the district court’s finding that Yanling
violated NRCP 16.1.
The district court abused its discretion in failing to analyze the Young factors
Generally, we review a district court order regarding discovery
sanctions for an abuse of discretion. Foster v. Dingwall , 126 Nev. 56, 65,
227 P.3d 1042, 1048 (2010). When the order imposes case-terminating
sanctions, however, we apply a somewhat heightened standard of review.
Id. “Under this somewhat heightened standard, the district court abuses
its discretion if the sanctions are not just and do not relate to the claims at
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issue in the discovery order that was violated.” Id. (citing Young v. Johnny
Ribeiro Bldg., Inc. , 106 Nev. 88, 92, 787 P.2d 777, 779-80 (1990)).
A district court may sanction a party for failing to make
disclosures or cooperate in discovery, NRCP 16.1(e)(3); NRCP 37(c), but it
must apply the Young factors whenever it orders “dismissal with prejudice
as a discovery sanction.” 106 Nev. at 93, 787 P.2d at 780. Those factors
include (1) the offending party’s degree of willfulness, ( 2) the extent of
prejudice to the nonoffending party by a lesser sanction, (3) the severity of
dismissal relative to the abusive conduct, (4) whether evidence has been
irreparably lost, (5) the feasibility and fairness of alternative and less severe
sanctions, (6) the policy favoring adjudication on the merits, (7) whether
sanctions unfairly operate to penalize a party for the misconduct of their
attorney, and (8) the need to deter parties from similar abuses. Id.
Yanling argues that the district court abused its discretion in
imposing a case-ending sanction without applying the Young factors.
Yanling further asserts that the district court erred by failing to consider
whether any alleged omissions in the damages computations were
substantially justified or harmless under the NRCP 37(c)(1) analytical
framework. She contends that any failure to provide a timely supplemental
disclosure was harmless because Yanhui was on notice of her potential
liability from the outset of the litigation when Yanling included a detailed
calculation of her initial investment and her entitlement to a 50-percent
share of rental and sale proceeds in her default judgment application.
Yanling states that Yanhui cannot claim prejudice from any deficiency in
Yanling’s disclosures when many of the documents needed to prove
damages were in Yanhui’s possession and Yanhui refused to disclose them
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despite discovery requests, such that Yanling had to rely on fair market
value and outside sources to compute damages.
Yanling also claims her detailed supplemental computation
demonstrates that any deficiency was harmless because it did not disclose
new documents to Yanhui, the district court had already indicated it would
be inclined to continue trial if necessary, no discovery deadlines were
undermined, and no testimony was foreclosed. Yanling asserts that feasible
alternatives included awarding attorney fees or granting a brief
continuance of trial to allow supplementation.
We agree with Yanling that when a district court issues a
discovery sanction under NRCP 37 that ultimately and necessarily results
in a dismissal with prejudice —here, granting a motion in limine to bar
evidence of damages—the district court must support its order “by an
express, careful and preferably written explanation of the court’s analysis
of the pertinent factors.” Young, 106 Nev. at 93, 787 P.2d at 780. Discovery
sanctions must be just and relate to the violations at issue and should only
be imposed after thoughtful consideration by the district court. Id. at 92,
787 P.2d at 780. Here, the district court effectively dismissed Yanling’s case
with prejudice by precluding her from presenting evidence of damages, a
necessary element of her claims, and thus leaving her with no remaining
claims to litigate. Granting the motion in limine to exclude such evidence
under NRCP 37(c)(1) therefore had the same effect as if the district court
“dismiss[ed] the action or proceeding in whole or in part” under NRCP
37(b)(1)(E). Since the district court did not analyze the Young factors before
entering an order granting the motion in limine and entering its final order
dismissing Yanling’s complaint with prejudice, it abused its discretion
under our somewhat heightened standard of review.
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CONCLUSION
A district court cannot issue a discovery sanction for failing to
provide required disclosures under NRCP 16.1 that, in effect, is a case-
ending sanction without analysis of the Young factors. Although the court
here did not explicitly issue an NRCP 37(b)(2) discovery sanction of
dismissal, granting the motion in limine under NRCP 37(c)(1) and barring
any damages evidence from being presented resulted in the termination of
the case because damages were an essential element of the asserted claims.
Such an action must be supported by clear and thoughtful consideration of
the Young factors. We therefore vacate the order granting dismissal with
prejudice and remand to the district court for an analysis of the Young
factors.2
Cadish, J.
We concur:
Stiglich, J.
Lee, J.
2Analyzing the Young factors here will also entail addressing whether
Yanling’s failure to properly disclose damages was substantially justified or
harmless under NRCP 37(c)(1).
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