NEV. GAMING COMM'N v. WYNN

2022 NV 20, 507 P.3d 183
CourtNevada Supreme Court
DecidedMarch 31, 2022
Docket82263
StatusPublished

This text of 2022 NV 20 (NEV. GAMING COMM'N v. WYNN) 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
NEV. GAMING COMM'N v. WYNN, 2022 NV 20, 507 P.3d 183 (Neb. 2022).

Opinion

138 Nev., Advance Opinion W IN THE SUPREME COURT OF THE STATE OF NEVADA

NEVADA GAMING COMMISSION, A No. 82263 POLITICAL SUBDIVISION OF THE STATE OF NEVADA; AND NEVADA GAMING CONTROL BOARD, A POLITICAL SUBDIVISION OF THE STATE OF NEVADA, FilLED Appellants, VS.

STEPHEN A. WYNN, AN INDIVIDUAL, Respondent.

Appeal from a district court order granting a petition for judicial review of, or a writ of prohibition concerning, a gaming commission proceeding. Eighth Judicial District Court, Clark County; Adriana Escobar, Judge. Reversed and remanded.

Aaron D. Ford, Attorney General, Darlene S. Caruso, Chief Deputy Attorney General, Kiel B. Ireland, Deputy Attorney General, and Steven G. Shevorski, Chief Litigation Counsel, Carson City, for Appellants.

Campbell & Williams and Donald J. Campbell and J. Colby Williams, Las Vegas, for Respondent.

BEFORE THE SUPREME COURT, EN BANC.

SUPREME COURT OF NEVADA

(01 1947A 4(e14. OPINION By the Court, SILVER, J.: NRS 463.315(1) entitles a person subject to disciplinary proceedings by the Nevada Gaming Commission to judicial review of the Commission's final order in district court. NRS 463.318(2) states that this judicial review "is the exclusive method of review of the Commission's actions, decisions and orders in disciplinary hearings." NRS 463.318(2) also precludes extraordinary common-law writs or equitable proceedings "where statutory judicial review is made exclusive." In this appeal, we consider for the first time whether NRS 463.318(2) precludes a petition for a writ of prohibition challenging the jurisdiction of the Commission and the Nevada Gaming Control Board (collectively, when possible, the Agencies) over a party in disciplinary proceedings before the Commission enters a final decision. We also consider whether an order by the Commission denying a motion to dismiss is "final" under NRS 463.315(1). In the underlying disciplinary action before the Commission, respondent moved to dismiss on the ground that the Agencies lacked jurisdiction over him. The Commission denied the motion, and respondent filed a petition for judicial review or, in the alternative, a writ of prohibition in the district court. The court found that judicial review was unavailable because the Commission had not entered a final decision. The court consequently found, however, that respondent lacked an adequate legal remedy to challenge the Commission's jurisdiction and that it could therefore entertain respondent's petition to the extent that he alternatively sought a writ of prohibition. Ultimately, the court granted writ relief, determining that the Agencies exceeded their jurisdiction in the disciplinary action against respondent.

2 We conclude that, pursuant to NRS 463.318(2), the district court lacked jurisdiction to entertain respondent's petition for a writ of prohibition to arrest the disciplinary proceedings against him. The district court also lacked jurisdiction to consider the petition for judicial review pursuant to NRS 463.315(1) because an order denying a motion to dismiss for lack of jurisdiction is not a final order. Therefore, we conclude that the district court erred by entertaining and granting respondent's petition, whether viewed as a petition for judicial review or as a petition for a writ of prohibition. Accordingly, we reverse. FACTS AND PROCEDURAL HISTORY From 2005 to 2018, respondent Stephen A. Wynn was the Chief Executive Officer, Chairman of the Board of Directors, and controlling shareholder of nonparty Wynn Las Vegas, LLC, dba Wynn Las Vegas and Wynn Resorts, Ltd. (Wynn Resorts). In accord with his involvement with Wynn Resorts, Wynn obtained a finding of suitability from the Commission, which allowed him to serve in his various capacities with the gaming establishment. In January 2018, The Wall Street Journal published an article in which several Wynn Resorts employees alleged that Wynn had engaged in sexual misconduct since 2005. Following this publication, the Board began to investigate these allegations. A few weeks after the Board started its investigation, Wynn resigned as CEO and Chairman of Wynn Resorts and signed a separation agreement. In that agreement, Wynn agreed to forgo any severance payment from Wynn Resorts for his services as CEO and Chairman and agreed to sell his stock shares of Wynn Resorts. Wynn sold his shares in Wynn Resorts shortly thereafter. Months later, as a part of its investigation, the Board sent Wynn notice of its intent to require Wynn to testify at an investigative hearing. Wynn did not appear at that hearing. Instead, Wynn's attorneys Summon COURT OF NEVADA

3 (0) 1947A 4140114 met with the Agencies and requested that Wynn's cooperation with the investigation be limited to answering written inquiries due to pending lawsuits by the Wynn Resorts employees regarding Wynn's alleged sexual misconduct. The Agencies rejected the request. Wynn's attorneys responded with a letter reiterating the request and arguing that Wynn should not have to testify because he was no longer involved with Wynn Resorts. The Agencies did not respond to this letter. In January 2019, the Board filed a complaint seeking monetary fines against Wynn Resorts, but not Wynn individually, for violations of the Nevada Gaming Control Act and gaming regulations stemming from Wynn's alleged sexual misconduct. The Board and Wynn Resorts settled that action a month later, with Wynn Resorts agreeing to pay a fine of $20 million. The Board then filed a complaint before the Commission to revoke the finding of suitability regarding Wynn. The Board asserted that Wynn's alleged sexual misconduct constituted four violations of Nevada gaming statutes and regulations and that his failure to appear and testify at the investigative hearing constituted a fifth violation. Wynn moved to dismiss, arguing that the Agencies lacked jurisdiction over him because he had resigned as CEO of Wynn Resorts, had moved from his residence in the property, had sold his stock in Wynn Resorts, and was no longer involved with gaming licenses at the time the Board filed its complaint against him. The Commission denied the motion, and Wynn filed a petition for judicial review or, in the alternative, for a writ of prohibition in the district court. The district court denied Wynes request for judicial review, finding that such review was not available because the Commission had not entered a final decision. However, the district court concluded that it could entertain Wynn's request for a writ of prohibition. The court reasoned that because it lacked jurisdiction to consider Wynn's petition for judicial review,

4 Wynn lacked an adequate legal remedy. As a result, the court found, a writ of prohibition was available if the Agencies had exceeded their jurisdiction in the disciplinary action against Wynn. Ultimately, the district court agreed with Wynn that, because he was no longer involved with Wynn Resorts, the Agencies lacked jurisdiction over Wynn. Accordingly, the court granted Wynn's petition to the extent that he sought a writ of prohibition.' The Agencies now appeal.

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Bluebook (online)
2022 NV 20, 507 P.3d 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nev-gaming-commn-v-wynn-nev-2022.