Desage Vs. Aw Fin. Grp., Llc

CourtNevada Supreme Court
DecidedApril 22, 2020
Docket71919
StatusPublished

This text of Desage Vs. Aw Fin. Grp., Llc (Desage Vs. Aw Fin. Grp., Llc) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Desage Vs. Aw Fin. Grp., Llc, (Neb. 2020).

Opinion

IN THE SUPREME COURT OF THE STATE OF NEVADA

RAMON DESAGE, AN INDIVIDUAL; No. 71919 AND CADEAU EXPRESS, INC., A NEVADA CORPORATION, Appellants, vs. FILED AW FINANCIAL GROUP, LLC, A NEVADA LIMITED LIABILITY COMPANY, Res • ondent.

ORDER OF AFFIRMANCE

This is an appeal from district court orders confirming an arbitration award and denying motions to change venue and for a preliminary injunction. Eighth Judicial District Court, Clark County; Nancy L. Allf, Judge. Relevant Facts and Procedural History Appellants Ramon DeSage, a Nevada resident, and Cadeau Express, Inc., a Nevada corporation (collectively, DeSage), defaulted on several promissory notes in favor of respondent AW Financial Group, LLC, a Nevada limited-liability company. AW filed an action in Nevada state district court concerning these promissory notes, each with identical choice- of-law, forum-selection, and binding-arbitration provisions. DeSage moved to dismiss the action for lack of subject-matter jurisdiction and failure to state a claim. The district court compelled the parties to arbitrate in California but stayed the case, in lieu of &missal. The arbitrator awarded AW nearly $37 million. AW then moved to confirm the award in the stayed Nevada action. DeSage moved to change venue and to dismiss, asserting that the district court lacked subject-matter jurisdiction to confirm the award. He alternatively moved SUPREME COM OF

10-i.rictr NEVADA

(0) I947A to vacate the award. The district court denied DeSage's motions, confirmed the award, and entered judgment against DeSage, who appeals. The issue presented is whether at any point the district court exceeded its authority. Concluding it did not, this court affirms. Discussion The promissory notes had identical provisions concerning choice of law, forum selection, and binding arbitration: Applicable Law. This Note shall be construed in accordance with and shall be governed by the internal laws of the State of California applicable to contracts made and wholly performed therein which shall govern the validity, construction, performance and effect of this Note. The Superior Court of Los Angeles County and/or the United States District Court for such County shall have jurisdiction and venue over all disputes between the parties. The parties hereby irrevocably submit and consent to the non-exclusive jurisdiction of any federal or state court located within Los Angeles, •California over any dispute arising out of or relating to this Note.

Arbitration. Any and all disagreements or controversies arising with respect to this Note, or with respect to its application to circumstances not clearly set forth in this Note, shall be settled by, and only by, binding arbitration to be held, and the award made, in Los Angeles County, California, pursuant to the then-existing commercial arbitration rules of the American Arbitration Association. . . . A decision in any such arbitration shall apply both to the particular question submitted and to all similar questions arising thereafter and shall be binding and conclusive upon all parties and shall be enforceable in any court having jurisdiction over the party to be charged.

2 DeSage argues that, read together, these provisions reflect the parties' intent that California was to be the exclusive forum for resolving all issues incidental to arbitration. DeSage accordingly argues that the district court lacked subject-matter jurisdiction over AWs action from the outset. DeSage's arguments specifically challenge the district court's jurisdiction under these provisions to order the parties to arbitrate and, after arbitration, its jurisdiction to confirm the resulting arbitration award. Standard of review This court reviews questions of law, including questions of contract interpretation and subject-matter jurisdiction, de novo. Am. First Fed. Credit Union v. Soro, 131 Nev. 737, 739, 359 P.3d 105, 106 (2015). This review requires first reading the contract "as a whole in order to give a reasonable and harmonious meaning and effect to all its provisions." Nat'l Union Fire Ins. Co. of Pa., Inc. v. Reno's Exec. Air, Inc., 100 Nev. 360, 364, 682 P.2d 1380, 1383 (1984) (further stating that the "court must look to the entire contrace to truly understand it). Contracts are enforced "as written" to the extent their text is "clear and unambiguous." Soro, 131 Nev. at 739, 359 P.3d at 106 (quoting Davis v. Beling, 128 Nev. 301, 321, 278 P.3d 501, 515 (2012)). An arbitration agreement is "fundamentally a matter of contrace and statute. See Principal Invs., Inc. v. Harrison, 132 Nev. 9, 14- 15, 14 n.3, 366 P.3d 688, 692 & n.3 (2016) (stating "Nevada's similarly fundamental policy favoring the enforceability of arbitration agreements as written," citing NRS 38.219(1)). "The jurisdiction and powers of a court with respect to the enforcement of arbitration proceedings are governed by the terms of the statutes . . . or contracts conferring them . . . ." 6 C.J.S. Arbitration § 67 (2016). This court reviews questions of law, including questions of statutory interpretation and subject-matter jurisdiction, de novo. Schettler v. RalRon Capital Corp., 128 Nev. 209, 214, 275 P.3d 933,

3 936 (2012); Harris Assocs. v. Clark Cty. Sch. Dist., 119 Nev. 638, 641, 81 P.3d 532, 534 (2003). The district court had authority to order arbitration We consider the contracts themselves first. A district court will dismiss a complaint pursuant to a mandatory forum-selection clause only if the clause specifies a non-Nevada forum with unequivocal "words of exclusivity." Soro, 131 Nev. at 742-43, 359 P.3d at 108. The parties forum- selection provision here not only lacks words of exclusivity; it states, specifically, that it is "non-exclusive." See id. at 740-43, 359 P.3d at 106-08 (distinguishing between exclusive and nonexclusive forum-selection clauses). DeSage argues that under controlling California law, he was entitled to an evidentiary hearing regardless of whether the forum-selection clause was ambiguous, apparently invoking Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co., 442 P.2d 641, 645 (Cal. 1968), which permits parol evidence to contradict the meaning of even unambiguous contractual text. See Trident Ctr. v. Conn. Gen. Life Ins. Co., 847 F.2d 564, 569 (9th Cir. 1988). Although we acknowledge that California law generally controls questions of interpretation regarding the contracts at hand, Nevada courts apply Nevada law to interpret forum-selection clauses as enforceable. See Soro, 131 Nev. at 738-40, 359 P.3d at 106-08 (applying Nevada law to interpret a forum-selection clause despite a choice-of-law clause directing courts to construe the contract under Utah law); Tuxedo Inel Inc. v. Rosenberg, 127 Nev. 11, 21-26, 251 P.3d 690, 696-700 (2011) (applying Nevada law to interpret a forum-selection clause and a choice-of- law clause specifying that "the Agreement will be governed by the laws of Peru"); see also, e.g., John F. Coyle, The Canons of Construction for Choice- of-Law Clauses, 92 Wash. L. Rev. 631, 681 (2017) (noting that several states follow an "imperialistic" rule—that the law of the forum state governs the SUPREME Com OF NEVADA 4 (0) 1947A 001.

MEL1.Wal interpretation of certain clauses regardless of an expressed choice of law). Under Nevada law, which controls this issue, "parol evidence may not be used to contradict the terms of a written contractual agreement." Kaldi v. Farmers Ins.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Danial Siebert v. Alabama
497 U.S. 1032 (Supreme Court, 1990)
Albemarle Corp. v. AstraZeneca UK Ltd.
628 F.3d 643 (Fourth Circuit, 2010)
Sylver v. Regents Bank, N.A.
300 P.3d 718 (Nevada Supreme Court, 2013)
Diversified Capital Corp. v. City of North Las Vegas
590 P.2d 146 (Nevada Supreme Court, 1979)
Pacific Gas & Electric Co. v. G. W. Thomas Drayage & Rigging Co.
442 P.2d 641 (California Supreme Court, 1968)
Topaz Mutual Co. v. Marsh
839 P.2d 606 (Nevada Supreme Court, 1992)
Sierra Glass & Mirror v. Viking Industries, Inc.
808 P.2d 512 (Nevada Supreme Court, 1991)
Old Aztec Mine, Inc. v. Brown
623 P.2d 981 (Nevada Supreme Court, 1981)
Clark County Public Employees Ass'n v. Pearson
798 P.2d 136 (Nevada Supreme Court, 1990)
National Union Fire Insurance v. Reno's Executive Air, Inc.
682 P.2d 1380 (Nevada Supreme Court, 1984)
Artrip v. Samons Construction Inc.
54 S.W.3d 169 (Court of Appeals of Kentucky, 2001)
Kustom Kraft Homes v. Leivenstein
14 Cal. App. 3d 805 (California Court of Appeal, 1971)
TRACY A. v. Superior Court
12 Cal. Rptr. 3d 684 (California Court of Appeal, 2004)
SWAB FINANCIAL v. E Trade Securities
58 Cal. Rptr. 3d 904 (California Court of Appeal, 2007)
Mount Diablo Medical Center v. Health Net of California, Inc.
124 Cal. Rptr. 2d 607 (California Court of Appeal, 2002)
Alexander v. Superior Court
8 Cal. Rptr. 3d 111 (California Court of Appeal, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
Desage Vs. Aw Fin. Grp., Llc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/desage-vs-aw-fin-grp-llc-nev-2020.