Eagle Investors v. Bank of America

MEMORANDUM

Eagle Investors, a Nevada corporation, appeals from the district court’s order denying its motion for a preliminary injunction in this diversity action. We have jurisdiction under 28 U.S.C. § 1292 (a)(1). We vacate and remand.

The district court erred in concluding that Eagle Investors has not shown a likelihood of irreparable harm. Where, as here, a right of action arises under state law, state law must also govern the extent to which damages are available to vindicate that right. See Clausen v. M/V New Carissa, 339 F.3d 1049, 1064-65 (9th Cir.2003); Begay v. Kerr-McGee Corp., 682 F.2d 1311, 1317-18 (9th Cir.1982). Under Nevada law, “real property and its attributes are considered unique and loss of real property rights generally results in irreparable harm” — that is, harm that cannot be adequately remedied through money damages. Dixon v. Thatcher, 103 Nev. 414 , 742 P.2d 1029, 1030 (1987) (per curiam); see also Hamm v. Arrowcreek Homeowners’ Ass’n, 124 Nev. 290 , 183 P.3d 895, 901 (2008) (en banc) (“[Hjarm is ‘irreparable’ if it cannot adequately be remedied by compensatory damages.”). The Nevada Supreme Court has viewed the loss of real property as irreparable…