Drexler v. Silver

District Court, D. Nevada·Decided October 12, 2023·No. 3:23-cv-00128·Unknown

Opinion

RYAN DREXLER, an individual, ) ) Plaintiff, ) ) ) 3:23-cv-00128-RCJ-CSD vs. )

) ORDER TIM SILVER, an individual, DOES 1 to 10, ) and ROE CORPORATIONS 1-10, inclusive, ) ) Defendants. ) )

Removed from the Second Judicial District of Washoe County on March 24, 2023, (Dkt. 1), this case alleges that Defendant Tim Silver engaged in the intention torts of defamation and invasion of privacy (in the form of false light and public disclosure of private facts). (Dkt. 1-1 at 8–9). Defendants filed a Motion to Dismiss the complaint on the same day. (Dkt. 3). A few days after filing his response brief in opposition to the motion, Plaintiff Ryan Drexler filed a Motion to Supplement Opposition to Timothy Silver’s Motion to Dismiss. (Dkt. 12). Both motions are presently pending before the Court. After thorough review, the Court denies Drexler’s motion to supplement, (id.), and strikes it from the record. The Court grants Silver’s motion, (Dkt. 3), and dismisses this case with prejudice. I. Factual Background The underlying facts of this case are fairly complicated, (see Dkt. 1-1 at 3–8); (Dkt. 3 at 9– 18), but the issue at hand—whether this Court has personal jurisdiction over Silver—is not. During his time running a publicly traded company registered in Nevada, Drexler, a Nevada resident, incurred millions in debt, causing the company to file bankruptcy proceedings.1 (Dkt. 3 at 8); (Dkt. 1-1 at 3–5). Among the company’s creditors was the company that employs Silver, a resident of New York. (Dkt. 3 at 8, 26); (Dkt. 1-1 at 6); (Dkt. 1 at 2). According to Drexler, during the course of the bankruptcy proceedings, Silver “made false and defamatory statements” about him to a number of the “other creditors” involved in the proceedings and to “reporters seeking to generate publicity against Drexler so as to leverage and enhance” the position of Silver’s company in the proceedings.2 (Dkt. 1-1 at 6–7 (emphasis in original)); (Dkt. 3 at 8). As a result, Drexler brings claims against Silver of defamation and invasion of privacy. (Dkt. 1-1 at 8–9).

II. Legal Standards A. Personal Jurisdiction3 Rule 12(b)(2) allows a party to seek dismissal for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2); Patterson v. Baller Alert, Inc., 2018 WL 11354104, at *1 (C.D. Calif. Dec. 10, 2018). “Once a party seeks dismissal under Rule 12(b)(2), the plaintiff has the burden of

1 These proceedings are currently ongoing. (Dkt. 3 at 8). 2 Neither the third-party creditors nor the alleged reporters are parties to this case. 3 While Silver offers three grounds on which he argues dismissal is appropriate, (see Dkt. 3 at 8–9, 18–31), the Court need not reach all of them if one—in this case lack of personal jurisdiction—warrants dismissal. See Richardson v. Oppenheimer & Co. Inc., 2013 WL 1955406, at *3 (D. Nev. May 10, 2013) (“Because questions of personal jurisdiction generally should be resolved before a discussion of the substance of the case, the Court will address this argument first.”). demonstrating that the exercise of personal jurisdiction is proper.” Patterson, 2018 WL 11354104, at *1. “Where, as here, the district court did not hold an evidentiary hearing, a plaintiff need only make a prima facie showing of jurisdiction to survive the motion to dismiss,” which requires only providing “facts that, if true, would support jurisdiction over the Defendant.” Mattel, Inc. v. Greiner & Hausser GmbH, 354 F.3d 857, 862 (9th Cir. 2003). Factual “[c]onflicts between parties . . . must be resolved in the plaintiff's favor.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004). “A party seeking to exert personal jurisdiction over a nonresident must satisfy the forum state’s long-arm statute and comport with the requirements of due process.” Patterson, 2018 WL 11354104, at *2. The state of “Nevada has authorized its courts to exercise jurisdiction over persons ‘on any basis not inconsistent with . . . the Constitution of the United States.’” Bellagio, LLC v. Bellagio Car Wash & Exp. Lube, 116 F. Supp. 3d 1166, 1169 (D. Nev. 2015) (quoting Nev.

Rev. Stat. § 14.065). Thus, the Court need only do a due process analysis. Edwards v. Juan Martinez, Inc., 2020 WL 5648319, at *3 (D. Nev. Sept. 22, 2020). “The Due Process Clause of the Fourteenth Amendment to the United States Constitution permits personal jurisdiction over a defendant in any State with which the defendant has certain minimum contacts such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” Calder v. Jones, 465 U.S. 783, 788 (1984) (emphasis added) (cleaned up). In determining whether minimum contacts exist, “a court properly focuses on the relationship among the defendant, the forum, and the litigation.” Id. (cleaned up); Walden v. Fiore, 571 U.S. 277, 283–84 (2014). When the defendant in a case is nonresident of the forum state, a showing of

minimum contacts is required “[f]or a State to exercise jurisdiction consistent with due process,” therefore, “the [nonresident] defendant's suit-related conduct must create a substantial connection with the forum State.” Walden, 571 U.S. at 284; see also Axiom Foods, Inc. v. Acerchem Int’l, Inc., 874 F.3d 1064, 1068 (9th Cir. 2017). 1. General Jurisdiction Personal jurisdiction can take two forms—general or specific. Schwarzenegger, 374 F.3d at 801. When determining a court’s general power over an individual, “the paradigm forum for the exercise of general jurisdiction is the individual's domicile[.]” Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 924 (2011). For general jurisdiction to exist over a nonresident defendant, “the defendant must engage in continuous and systematic general business contacts, that approximate physical presence in the forum state.” Id. (cleaned up) (internal citations omitted). “This is an exacting standard, as it should be, because a finding of general jurisdiction permits a defendant to be haled into court in the forum state to answer for any of its

activities anywhere in the world.” Id. 2. Specific Jurisdiction “Without general jurisdiction, the Court may only exercise personal jurisdiction over Defendants if they are subject to specific jurisdiction.” Patterson, 2018 WL 11354104, at *3. “[A] court may exercise specific jurisdiction over a defendant if a rule or statute authorizes it to do so and the exercise of such jurisdiction comports with the constitutional requirement of due process.” Myers v. Bennett L. Offs., 238 F.3d 1068, 1072 (9th Cir. 2001) (citation omitted). For specific jurisdiction to exist, “[d]ue process requires that the defendants have certain minimum contacts with the forum.” Gordy v. Daily News, L.P., 95 F.3d 829, 831 (9th Cir. 1996), as amended (Oct.

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