Baluma, S.A. v. Chow

District Court, D. Nevada·Decided March 24, 2022·No. 2:20-cv-01752·Unknown

Opinion

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BALUMA, S.A., d/b/a ENJOY PUNTA DEL Case No. 2:20-cv-001752-KJD-EJY ESTE & CASINO, Plaintiff\Counterdefendant, v. JOHNNY CHUN-YU CHOW, Defendant\Counterclaimant. Presently before the Court is Plaintiff’s Motion for Summary Judgment (#17). Defendant filed a response in opposition (#21) to which Plaintiff replied (#22). I. Facts Plaintiff Baluma, a gaming corporation in Uruguay associated with Caesars Entertainment, brings this action to recover for breach of contract based on gaming markers signed by Defendant. On or about November 15, 2018, Defendant Johnny Chun-yu Chow submitted a credit application (the “Credit Application”) to Plaintiff Baluma seeking to obtain credit from Baluma. In connection with the Credit Application, Chow completed a separate document entitled “Casino Credit Fact Sheet, Application and Agreement” (the “Fact Sheet”) which set forth certain terms and conditions associated with the line of credit sought by Chow. As a result, Chow was granted marker signing privileges. Chow then executed four Draw Requests, seeking to draw down the full amount of his line of credit, $550,000.00. In connection with his request, Chow admits that he executed four (4) substantially similar agreements known as the Draw Requests. The Draw Requests contained Defendant’s promise to repay the stated amounts (up to $300,000.00 per request) acknowledging that the document was a credit instrument that created an obligation to pay the full amount, “identical to a personal check[.]” See Plaintiff’s Motion for Summary Judgment (“MSJ”), Doc. No. 17, p. 4, l. 1-15. After agreeing to the terms of the Draw Requests, Chow signed twenty (20) separate markers reflecting the total principal amount of indebtedness of $550,000.00 (the “Markers”). Baluma has demonstrated, and Chow has admitted (through his unwithdrawn Admissions and his deposition testimony), that the Markers expressly contemplated that Chow would pay the amount reflected therein, plus interest, on or before the dates set forth in each Marker. Baluma has established, and Chow has admitted, that he accepted $550,000 from the Casino and utilized the same gambling in the Casino. Despite Chow’s express obligation to repay the entire amount due under the Markers, Chow has admitted that he did not repay the amounts reflected by the Markers prior to leaving the Casino or by the dates contemplated by the Markers. See MSJ, Ex. 4, Chow Dep. Tr., 220:5- 15. Such amounts remain due and owing to Baluma. Plaintiff then filed the present action asserting claims for breach of contract, breach of the covenant of good faith and fair dealing and unjust enrichment.1 Defendant filed a counterclaim asserting claims for setoff, recoupment and breach of contract. II. Standard Summary judgment is appropriate when the pleadings, discovery responses, and affidavits “show there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 330 (1986) (citing Fed. R. Civ. P. 56(c)). For summary judgment purposes, the court views all facts and draws all inferences in the light most favorable to the nonmoving party. Kaiser Cement Corp. v. Fishbach & Moore, Inc., 793 F.2d 1100, 1103 (9th Cir. 1986). The moving party bears the initial burden of showing that there are no genuine issues of material fact for trial. It can do this by: (1) presenting evidence to negate an essential element of 1 The Court, finding that no genuine issue of material fact prevents it from granting Plaintiff’s motion for summary judgment on breach of contract, dismisses Plaintiff’s claim for unjust enrichment as moot. The general rule being that unjust enrichment claims may not be based on express written contracts. Leasepartners Corp v. Robert L. Brooks Trust, 942 P.2d 182, 187 (Nev. 1997). the nonmoving party's case; or (2) demonstrating the nonmoving party failed to make a showing sufficient to establish an element essential to that party's case on which that party will bear the burden of proof at trial. See Celotex, 477 U.S. at 323–325. If the moving party satisfies its initial burden, the burden shifts to the opposing party to establish that a genuine dispute exists as to a material fact. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 (1986). To establish the existence of a genuine dispute of material fact, it is sufficient that “the claimed factual dispute be shown to require a jury or judge to resolve the parties' differing versions of the truth at trial.” T. W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass'n, 809 F.2d 626, 630 (9th Cir. 1987) (quotation marks and citation omitted). But the nonmoving party “must do more than simply show that there is some metaphysical doubt as to the material facts.” Bank of Am. v. Orr, 285 F.3d 764, 783 (9th Cir. 2002) (internal citations omitted). It “must produce specific evidence, through affidavits or admissible discovery material, to show” a sufficient evidentiary basis on which a reasonable fact finder could find in its favor. Bhan v. NME Hosps., Inc., 929 F.2d 1404, 1409 (9th Cir. 1991); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248–249 (1986). III. Plaintiff’s Motion for Summary Judgment on Its Claims A. Breach of Contract To prevail on its breach of contract claim against Chow, Baluma must prove: “(1) formation of a valid contract; (2) performance or excuse of performance by the plaintiff; (3) material breach by the defendant; and (4) damages.” See Laguerre v. Nevada Sys. of Higher Educ., 837 F. Supp. 2d 1176, 1180 (D. Nev. 2011). After establishing the required elements, summary judgment is appropriate in a marker collection case such as this. See NRS 463.368(1) et seq.; see also Morales v. Aria Resort & Casino, LLC, 995 F. Supp. 2d 1176, 1180-1181 (D. Nev. 2014) (finding credit applications and markers are contracts, under which the signing party has a duty to pay); see also Desert Palace, Inc. v. Michael, No. 2:16-cv-0462-JAD-GWF, 2017 U.S. Dist. LEXIS 19202, at *8 (D. Nev. Feb. 9, 2017) (finding the casino could bring a civil action against the patron to recover the amount of the debt without presenting the markers to the designated banks for payment). Here, there is no genuine issue that must be resolved by a fact finder. It is undisputed that Chow entered into a series of valid and existing contracts for loans totaling the amount of $550,000.00 — namely, the Credit Application, the Fact Sheet, Draw Request, and Markers (collectively, the “Contract”). There is no dispute as to repayment obligations under the Contract as reflected by its plain language. May v. Anderson, 672 P.3d 1254, 1257 (Nev. 2005) (under Nevada law, “Basic principles require, for an enforceable contract, an offer and acceptance, meeting of the minds, and consideration”). Chow confirmed that he executed each of those documents with the intent of receiving a $550,000 line of credit with which to ga

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