Douglas Coder & Linda Coder Family LLLP v. RNO Exhibitions, LLC

District Court, D. Nevada·Decided February 8, 2022·No. 3:19-cv-00520·Unknown

Opinion

* * *

DOUGLAS CODER & LINDA CODER Case No. 3:19-cv-00520-MMD-CLB FAMILY LLLP, Plaintiff, v.

RNO EXHIBITIONS, LLC, et al.,

Defendants.

Plaintiff Douglas Coder and Linda Coder Family LLLP sued Defendants RNO Exhibitions, LLC (“RNO”) and Vincent L. Webb (RNO’s alleged alter ego) after Plaintiff lent some money to RNO, but RNO never repaid Plaintiff. (ECF No. 37 (“FAC”).) Before the Court are three motions for summary judgment: (1) RNO’s motion on Plaintiff’s intentional misrepresentation and accounting claims (ECF No. 77);1 (2) Webb’s motion on all of Plaintiff’s claims asserted against him (ECF No. 78);2 and (3) Plaintiff’s motion on its breach of contract claim against RNO and intentional misrepresentation claim against RNO and Webb (ECF No. 79).3 As further explained below, the Court will grant Plaintiff summary judgment on its breach of contract claim against RNO, decline to resolve the alter ego issue and intentional misrepresentation claim in this order because genuine disputes of material fact preclude summary judgment, and grant Defendants 1Plaintiff filed a response (ECF No. 86) and RNO filed a reply (ECF No. 90). 2Plaintiff filed a response (ECF No. 85) and Webb filed a reply (ECF No. 89). 3Webb (ECF No. 82) and RNO (ECF No. 84) filed responses, and Plaintiff filed a reply (ECF No. 91). Defendants requested oral argument, but the Court denies their request as unnecessary. See LR 78-1 (“All motions may be considered and decided with Plaintiff lacks an ownership interest in RNO. The following facts are undisputed unless otherwise noted. In 2014 and 2015, RNO was a startup seeking funding for its business. (ECF No. 78-1 at 3.) Webb described himself during this timeframe as RNO’s Founder and President. (ECF No. 85-2 at 54.) Generally speaking, RNO’s business model was to promote and hold auctions at tradeshows using a proprietary app loaded onto tablets handed out to people at the tradeshows, allowing those tradeshow attendees to learn more about certain products and bid on them, and allowing RNO to sell the information collected from the app to companies selling their products at RNO’s auctions while also getting a commission on each product sold at auction. (Id. at 49-53, 55.) RNO targeted the “$343 Billion dollar Home Improvement and DIY Industry[.]” (Id. at 50.) A business associate of Webb introduced him to Douglas Coder. (ECF No. 78-1 at 3.) Webb spoke to Douglas Coder on the phone, and Douglas Coder talked about his history raising money for startups, but then explained he was retiring, and put Webb in touch with his son, Scott Coder. (Id. at 3.) Scott Coder orally agreed to find investors for RNO with Webb in exchange for a 10% commission on any money he brought in. (Id. at 3-4; see also ECF No. 85-2 at 4.) Scott Coder did find some investors for RNO, and RNO paid him commissions. (ECF No. 78-1 at 4.) It is then disputed exactly how it happened—Scott Coder says he solicited his father to invest in RNO (ECF No. 85-2 at 5-6)—but in 2015, Douglas Coder decided to loan money to RNO (see id.; see also ECF No. 79-6 at 3). It is also disputed whether Douglas Coder sent RNO some money before entering into an agreement with RNO, but there is no dispute that, on November 15, 2015, Plaintiff4 and RNO, with Webb as RNO’s 4“Plaintiff Douglas Coder & Linda Coder Family LLLP is a limited liability limited partnership that was organized and exists under the laws of the State of Arizona. The members of that partnership are residents of the States of Arizona and Iowa.” (ECF No. 37 at 2.) Scott Coder says he is a partner in it. (ECF No. 79-6 at 3.) Douglas Coder seems No. 79-6 at 7-11.) The Agreement provided that Plaintiff would loan RNO $280,000, and RNO would repay that amount with interest. (Id. at 7; see also 8-9 (the Promissory Note spelling out the loan terms more explicitly).) The Agreement also gave Plaintiff the option to buy a 2.8% equity stake in RNO for one dollar provided it gave RNO the $280,000, returned the signed loan documents, and paid one dollar for the shares. (Id. at 7, 10.) Plaintiff paid RNO the $280,000 it agreed to under the Agreement in three installments. (Id. at 3.) “On or about February 24, 2017, RNO made an interest payment of $10,373.91 to” Plaintiff. (Id. at 4.) Otherwise, RNO has not paid any of the money back. (Id. at 4-5.) Plaintiff accordingly contends that RNO owes it $423,626.09 at the time it filed its motion for summary judgment. (Id. at 4.) Plaintiff filed this case against RNO, and Webb as RNO’s alter ego, seeking repayment of the money it is owed. (ECF No. 37.) Plaintiff specifically brought claims for breach of contract (the Agreement), breach of the covenant of good faith and fair dealing, unjust enrichment, for an accounting, and intentional misrepresentation. (Id.) The Court previously dismissed Plaintiff’s breach of the covenant of good faith and fair dealing and unjust enrichment claims. (ECF No. 56.)5 As noted, Plaintiff, RNO, and Webb now move for summary judgment on certain claims. “The purpose of summary judgment is to avoid unnecessary trials when there is no dispute as to the facts before the court.” Nw. Motorcycle Ass’n v. U.S. Dep’t of Agric.,

to also have some control over it because Scott Coder says that it was his father, Douglas Coder, who decided to invest in RNO, presumably through Plaintiff as Plaintiff’s name is in the Agreement. (ECF No. 85-2 at 5-6.) While the precise relationship between Douglas Coder and Plaintiff is unclear, Plaintiff seems to take it for granted that Douglas Coder could, and did, make decisions on behalf of Plaintiff. Moreover, Plaintiff’s name suggests it is an LLLP set up by Douglas Coder and his wife Linda to make investments or for other purposes.

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