Mirage Casino-Hotel v. Caram

762 F. Supp. 286, 1991 U.S. Dist. LEXIS 5894, 1991 WL 67674
CourtDistrict Court, D. Nevada
DecidedApril 17, 1991
DocketNo. CV-S-91-015-PMP (LRL)
StatusPublished
Cited by1 cases

This text of 762 F. Supp. 286 (Mirage Casino-Hotel v. Caram) 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
Mirage Casino-Hotel v. Caram, 762 F. Supp. 286, 1991 U.S. Dist. LEXIS 5894, 1991 WL 67674 (D. Nev. 1991).

Opinion

PRO, District Judge.

In January 1990, Defendant Abraham Caram, a resident of Mexico, came to Nevada on vacation. While in Las Vegas, Defendant applied for and received four hundred thousand dollars through a line of credit at the Mirage Casino-Hotel (“the Mirage”). In July 1990, the Mirage presented Defendant’s signed “marker” to Defendant’s bank in Laredo, Texas, and was denied payment. The casino filed its Complaint (# 1) on January 8, 1991.

Defendant now asserts that jurisdiction against him violates constitutional due process. Defendant filed a Specially Appearing Defendant’s Motion to Dismiss Pursuant to FRCP 12(b) (# 5) on March 4, 1991. On March 14, 1991, Plaintiff filed its Opposition to Quash Service of Process Pursuant to FRCP 12(b) (#7). Defendant filed his Reply in Support of his Motion to Quash Service of Process (# 9) on April 3, 1991. The matter now stands submitted to this Court.

A court considering an alien defendant’s motion to dismiss for lack of in personam jurisdiction must consider the following: (1) whether jurisdiction is conferred by the state long-arm statute; and (2) whether application of the statute is consistent with due process. Rigdon v. Bluff City Transfer & Storage Co., 649 F.Supp. 263, 265 (D.Nev.1986), citing Taubler v. Giraud, 655 F.2d 991, 993 (9th Cir.1981).

Nevada’s Long-Arm Statute

Nevada’s long-arm statute is codified as Nevada Revised Statute section 14.-065. Paragraph 2(a) of that section provides the basis for jurisdiction over Defendant Caram:

Any person who, in person or through an agent or instrumentality, does any of the acts enumerated in this subsection thereby submits himself and, if a natural person, his personal representative to the jurisdiction of the court of this state as to any cause of action which arises from:
(a) Transacting any business or negotiating any commercial paper within this state.

Nev.R.Stat. § 14.065(2)(a). Nevada’s interpretation of its long-arm statute binds this Court. Greenspun v. Del E. Webb Corp., 634 F.2d 1204 (9th Cir.1980). The Nevada Supreme Court has held that when a defendant creates continuing obligations between himself and a Nevada resident, the defendant avails himself of the privilege of [288]*288conducting business in the forum within the meaning of section 14.065(2)(a). Levinson v. Second Judicial Dist. Court ex rel. County of Washoe, 103 Nev. 404, 742 P.2d 1024 (1987). The Nevada courts have further held that the enumerated provisions of section 14.065 should be liberally construed. Certain-Teed Products Corp. v. Second Judicial Dist. Court, 87 Nev. 18, 479 P.2d 781, 784 (1971), cited in Rigdon v. Bluff City Transfer & Storage Co., 649 F.Supp. 263, 266 (D.Nev.1986).

Here, Defendant Caram applied for and received four hundred thousand dollars which allowed him to continue gambling at the Mirage. The application and the instrument which Defendant signed create an enforceable debt under Nevada Revised Statutes sections 463.367 and 463.368. Because by that application and instrument Defendant created a continuing obligation between himself and a Nevada resident, he is deemed by the Nevada courts to have availed himself of the privilege of conducting business. Levinson, 103 Nev. 404, 742 P.2d 1024 (1987). Therefore, Defendant is subject to the state’s long-arm statute.

The second inquiry this Court must conduct is whether Nevada’s long-arm statute, as applied to Defendant, violates constitutional notions of due process.

Constitutional Due Process

Under the Constitution, in personam jurisdiction against an alien defendant can only be asserted where it will not offend “traditional notions of fair play and substantial justice” International Shoe Company v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). See also Sinatra v. National Enquirer, Inc., 854 F.2d 1191 (9th Cir.1988). The Supreme Court has held that jurisdiction over a person is proper when “the defendant’s conduct and connection with the forum state are such that he should reasonably anticipate being haled into court there.” World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 567, 62 L.Ed.2d 490 (1980).

Even where there are not “continuous” and “systematic” contacts that would establish general jurisdiction over a defendant, Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 416, 104 S.Ct. 1868, 1873, 80 L.Ed.2d 404 (1984), jurisdiction is proper when the action at issue arose from the contact activity. Data Disc, Inc. v. Systems Tech. Assoc., Inc., 557 F.2d 1280 (9th Cir.1977). In fact, “[e]ven a single contact with or activity in the forum state may satisfy the constitutional test for minimum contacts where the claim for relief arises therefrom.” Sage Computer Technology v. P-Code Distributing Corp., 576 F.Supp. 1194 (D.Nev.1983) (citing Wells Fargo & Co. v. Wells Fargo Exp. Co., 556 F.2d 406, 415 (9th Cir.1977). Here, Defendant admits to coming to Nevada an average of six times per year.

Since the activity forming the basis for Plaintiff’s allegations took place in Nevada, the conclusion is easily drawn that special jurisdiction is proper. This conclusion is further supported by recent Ninth Circuit precedent.

The Ninth Circuit has articulated a three-part test to determine whether the constitutional standards for in personam jurisdiction have been met:

(1) The non-resident defendant must do some act or consummate some transaction with the forum or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws.
(2) The claim must be one which arises out of or results from the defendant’s forum-related activities.
(3) Exercise of jurisdiction must be reasonable.

Sinatra v. National Enquirer, Inc., 854 F.2d 1191, 1195 (9th Cir.1988) (citing Decker Coal Co. v.

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

Related

Las Vegas Sands, LLC v. Nehme
632 F.3d 526 (Ninth Circuit, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
762 F. Supp. 286, 1991 U.S. Dist. LEXIS 5894, 1991 WL 67674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mirage-casino-hotel-v-caram-nvd-1991.