James Sharkey v. Susan Clarke, Christal Keegan, Kristopher Sanchez, Nevada Real Estate Division

CourtDistrict Court, D. Nevada
DecidedNovember 6, 2025
Docket2:25-cv-00549
StatusUnknown

This text of James Sharkey v. Susan Clarke, Christal Keegan, Kristopher Sanchez, Nevada Real Estate Division (James Sharkey v. Susan Clarke, Christal Keegan, Kristopher Sanchez, Nevada Real Estate Division) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James Sharkey v. Susan Clarke, Christal Keegan, Kristopher Sanchez, Nevada Real Estate Division, (D. Nev. 2025).

Opinion

1 UNITED STATES DISTRICT COURT

2 DISTRICT OF NEVADA

3 * * *

4 JAMES SHARKEY, Case No. 2:25-cv-00549-CDS-EJY

5 Plaintiff,

6 v. ORDER

7 SUSAN CLARKE, CHRISTAL KEEGAN, KRISTOPHER SANCHEZ, NEVADA REAL 8 ESTATE DIVISION,

9 Defendants.

10 11 Pending before the Court is Plaintiffs’ proposed Second Amended Complaint and Motion 12 for Leave to Supplement Second Amended Complaint. ECF Nos. 23, 26. For the reasons stated 13 below, the Court grants Plaintiffs’ Motion for Leave to Supplement, but recommends dismissing the 14 proposed Second Amended Complaint. 15 I. Screening Standard 16 In screening the complaint, a court must identify cognizable claims and dismiss claims that 17 are frivolous, malicious, fail to state a claim on which relief may be granted or seek monetary relief 18 from a defendant who is immune from such relief. 28 U.S.C. § 1915(e)(2). Dismissal for failure to 19 state a claim under § 1915(e)(2) incorporates the standard for failure to state a claim under Federal 20 Rule of Civil Procedure 12(b)(6). Watison v. Carter, 668 F.3d 1108, 1112 (9th Cir. 2012). To 21 survive § 1915 review, a complaint must “contain sufficient factual matter, accepted as true, to state 22 a claim to relief that is plausible on its face.” See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). The 23 court liberally construes pro se complaints and may only dismiss them “if it appears beyond doubt 24 that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” 25 Nordstrom v. Ryan, 762 F.3d 903, 908 (9th Cir. 2014) (quoting Iqbal, 556 U.S. at 678). 26 In considering whether the complaint is sufficient to state a claim, all allegations of material 27 fact are taken as true and construed in the light most favorable to the plaintiff. Wyler Summit P’ship 1 standard under Rule 12(b)(6) does not require detailed factual allegations, a plaintiff must provide 2 more than mere labels and conclusions. Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). 3 A formulaic recitation of the elements of a cause of action is insufficient. Id. Unless it is clear the 4 complaint’s deficiencies could not be cured through amendment, a pro se plaintiff should be given 5 leave to amend the complaint with notice regarding the complaint’s deficiencies. Cato v. United 6 States, 70 F.3d 1103, 1106 (9th Cir. 1995). 7 II. Discussion

8 a. The Nevada Real Estate Division and Real Estate Commission are Immune From Suit. 9 “The Eleventh Amendment prohibits federal courts from hearing suits brought against an 10 unconsenting state,” operates as a “jurisdictional bar [that] covers suits naming state agencies and 11 departments as defendants, and applies whether the relief sought is legal or equitable in nature.” 12 Brooks v. Sulphur Springs Valley Elec. Co-op., 951 F.2d 1050, 1053 (9th Cir. 1991). Here, because 13 the Nevada Real Estate Division (“NRED”) and Nevada Real Estate Commission (the 14 “Commission”) are subdivisions of the Nevada Department of Business and Industry, they are 15 immune from suit and must be dismissed with prejudice. 16 b. Deputy Attorney General Christal Keegan is Immune from Suit. 17 In Demery v. Kupperman, the Ninth Circuit explained that “officials performing the functions 18 of a prosecutor in administrative proceedings are entitled to the absolute prosecutorial immunity ….” 19 735 F.2d 1139, 1143 (9th Cir. 1984) citing Butz v. Economou, 438 U.S. 478, 511-12 (1978). Citing 20 Sellars v. Procunier, 641 F.2d 1295, 1303 (9th Cir.), cert. denied, 454 U.S. 1102 (1981), the Ninth 21 Circuit explained that “we have held that … immunity … applies to state administrative officials 22 who perform functions analogous to those of a prosecutor.” Id. Plaintiffs complain about Ms. 23 Keegan who appeared in her role as a Deputy Attorney General for the State of Nevada at NRED 24 proceedings addressing the denial of Mr. Sharkey’s broker’s license. These appearances, even as 25 described by Mr. Sharkey, demonstrate Ms. Keegan was acting in a function analogous to a 26 prosecutor. See ECF No. 23 at 23. For this reason, the Court recommends Christal Keegan be 27 dismissed from Plaintiffs’ action with prejudice. 1 c. Plaintiffs’ Claims Against the Individual Defendants1 Fail as a Matter of Law. 2 1. Summary of Allegations. 3 Plaintiffs commence their claims against the Individual Defendants by asserting “[e]ach ... 4 Defendant[] acted under color of Nevada state law by exercising authority derived from state 5 statutes, administrative codes, or their official positions within state government or state-authorized 6 regulatory bodies. Their conduct was taken in the course of their official duties or using the power 7 of their office to deprive Plaintiff of his constitutional rights.” ECF No. 23 at 13. Plaintiffs then 8 claim, without explanation, that the events in this case date back to 2012. Id. at 19. Moving forward 9 to 2024, Mr. Sharkey states he surrendered his real estate salesperson license while waiting for his 10 broker’s license, which he labels a procedural trap. Id. at 20. Mr. Sharkey contends Defendant 11 Clarke does not like him and, for this reason, after he complained about her to the Nevada 12 Department of Business and Industry, she had her investigator (Gustafson) and Keegan “rubber 13 stamp a claim … that he was practicing real estate without a license.” Id. 14 During the 47 day gap that Mr. Sharkey did not have a sales agent or broker license, his wife 15 supposedly continued to work as a salesperson while he was limited to “construction consulting and 16 administrative support.” Id. at 21. Mrs. Sharkey allegedly closed a commercial deal (her first), but 17 was refused her commission because the broker (Brenda Williams) and an agent (Valerie 18 DiBenedetto) claimed Mr. Sharkey was working without a license. Id. A complaint was filed against 19 Mr. Sharkey. Mr. Sharkey says all the allegations were false, and the situation was “created by the 20 division” because of the 47 day lapse without a license. Id. at 22. 21 Mr. Sharkey apparently appeared before the Commission in August 2024 on denial of his 22 broker’s license, which is what prompted his complaint to the Department of Business and Industry 23 about Clarke and NRED staff allegedly engaging in misconduct. Id. at 23. This, Mr. Sharkey says, 24 led to a retaliatory call from Clarke. Id. Mr. Sharkey then accuses Keegan of misconduct during 25 26

27 1 The “Individual Defendants” include Sharath Chandra, NRED Administrator; Susan Clarke, Licensing Manager; Sean Gustafson, Investigator; Dr. Kristopher Sanchez, Director of the Nevada Department of Business and 1 NRED proceedings, references a matter resolved in this Court,2 and his conviction for simple battery 2 under state law that Mr. Sharkey says NRED mischaracterized as a felony against an older person. 3 Id. at 24. 4 After discussing Keegan’s conduct at the August 2024 NRED proceeding, Mr. Sharkey says 5 there was a February 2025 Commission hearing at which a motion in limine filed by his counsel was 6 denied. Id. at 27. Mr. Sharkey complains the Commission was biased because all of Keegan’s 7 motions were granted, including motions considered in violation of notice requirements established 8 by the Nevada Administrative Code. Id. at 28. Mr. Sharkey then repeats that all his motions were 9 denied by the Commission.

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James Sharkey v. Susan Clarke, Christal Keegan, Kristopher Sanchez, Nevada Real Estate Division, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-sharkey-v-susan-clarke-christal-keegan-kristopher-sanchez-nevada-nvd-2025.