Triunfo, Inc. v. Global Graphic Resources LLC

CourtDistrict Court, D. Nevada
DecidedMarch 10, 2021
Docket2:18-cv-01913
StatusUnknown

This text of Triunfo, Inc. v. Global Graphic Resources LLC (Triunfo, Inc. v. Global Graphic Resources LLC) 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
Triunfo, Inc. v. Global Graphic Resources LLC, (D. Nev. 2021).

Opinion

1 2 3 UNITED STATES DISTRICT COURT 4 DISTRICT OF NEVADA 5 * * *

6 TRIUNFO, INC., F.K.A. CATALINA Case Nos. GRAPHIC FILMS, INC., 2:18-cv-01913-RFB-DJA 7 2:19-cv-01164-RFB-EJY (transferred in & Plaintiff, consolidated) 8 v. ORDER 9 GLOBAL GRAPHIC RESOURCES LLC. et. 10 al.,

11 Defendants.

13 I. INTRODUCTION 14 Before the Court are Catalina’s Motion to Remand to State Court (ECF No. 28), Global 15 Graphic Resources LLC’s (GGR) Motion to Compel Arbitration (ECF Nos. 30, 39 in “01164”), 16 and Global Graphic Resources LLC’s Motion to Stay (ECF Nos. 31, 40 in “01164”).1 17 II. FACTUAL BACKGROUND 18 The Court makes the following factual findings. 19 In November 2017, GGR, a sales and distribution company, and Catalina, a manufacturer, 20 effectuated a Sales Representative Agreement (“SRA”) and a related Consulting Agreement that 21 gave GGR the exclusive right to sell Catalina’s products in Minnesota, Iowa, North and South 22 Dakota, Wisconsin, Illinois, Indiana, Michigan, the greater St. Louis metropolitan statistical area, 23 and to two companies, for a term of five years. In March 2018, Nekoosa LV, LLC, acquired 24 Catalina, and according to GGR, Nekoosa refused to be bound by the SRA. On July 19, 2018, 25 GGR made a demand for arbitration under the Uniform Arbitration Act, Minnesota Statutes 26 27 1 2:18-cv-01913-RFB-DJA and 2:19-cv-01164-RFB-EJY were consolidated. The same filings with different docket numbers exist in both cases. The response and reply to the Motion to Remand are only located in 2:18-cv- 28 01913. The response and reply to the Motion to Compel Arbitration and Motion to Stay are only located in 2:19-cv- 01164. 1 §§ 572B.05 and 572B.07. In its arbitration demand, GGR asserted claims for, inter alia, violation 2 of the Minnesota Termination of Sales Representatives Act (MTSRA) and breach of contract. The 3 arbitration demand noted that MTSRA § 325E.37, subdivision 7 voided and rendered 4 unenforceable the Nevada choice-of-law provision contained in the SRA. 5 III. PROCEDURAL BACKGROUND 6 The Court incorporates the factual findings from its January 23, 2019 Order granting 7 GGR’s Motion to Stay (ECF No. 6) and denying Catalina’s Motion to Remand (ECF No. 8) 8 pending resolution of a related dispute filed in the U.S. District Court for the District of Minnesota. 9 ECF No. 16. On July 1, 2019, Judge Wright of the U.S. District Court for the District of Minnesota 10 granted Catalina’s motion to transfer to the U.S. District Court for the District of Nevada and 11 declined to rule on GGR’s motion to compel arbitration. ECF No. 17 in 2:18-cv-01913-RFB-DJA; 12 ECF No. 24 in 2:19-cv-01164-RFB-EJY (“1164”). 13 On October 10, 2019, the Court held a status conference and ordered that a renewed Motion 14 to Remand and Renewed Motion to Compel were due November 11, 2019 with responses due 15 November 25, 2019 and replies due December 2, 2019. ECF No. 24. At the status conference, the 16 Court consolidated the two cases, and noted that the motion to remand and compel arbitration 17 would be decided together. The stay in the case was lifted, and discovery was suspended until the 18 Court decided the renewed motions. Id. 19 On November 11, 2019, Catalina filed a Motion for Remand to State Court. ECF No. 28. 20 On November 22, 2019, GGR responded to the Motion to Remand. ECF No. 32. On December 2, 21 2019, Catalina replied to the Motion to Remand. ECF No. 33. 22 On November 12, 2019, GGR filed a Motion to Compel Arbitration and a Motion to Stay. 23 ECF Nos. 30 and 31. On November 25, 2019, Catalina replied to the Motion to Compel (ECF No. 24 41 in “01164”), and on December 2, 2019, GGR responded. ECF No. 43 in “01164.” On November 25 25, 2019, Catalina responded to the Motion to Stay (ECF No. 42 in “01164”), and on December 26 2, 2019, GGR responded. ECF No. 44 in “01164.” 27 On November 3, 2020, the Court held a hearing on Catalina’s Motion to Remand to State 28 Court, GGR’s Motion to Compel Arbitration, and GGR’s Motion to Stay. ECF No. 36. 1 IV. LEGAL STANDARD 2 A. Remand 3 Under Brillhart v. Excess Ins. Co of America, 316 U.S. 491, 494-5 (1942), the Supreme 4 Court found that a district court has the discretion to determine whether it has jurisdiction under 5 the Federal Declaratory Judgment Act by considering factors such as avoiding needless 6 determination of state law issues, discouraging litigants from filing declaratory actions as a means 7 of forum shopping, and avoiding duplicative litigation. Additional factors include, “whether the 8 declaratory action will settle all aspects of the controversy; whether the declaratory action will 9 serve a useful purpose in clarifying the legal relations at issue; whether the declaratory action is 10 being sought merely for the purposes of procedural fencing or to obtain a ‘res judicata’ advantage; 11 or whether the use of a declaratory action will result in entanglement between the federal and state 12 court systems. In addition, a district court might also consider the convenience of the parties, and 13 the availability and relative convenience of other remedies.” Gov’t Employees Ins. Co. v. Dizol, 14 133 F.3d 1220, 1225 n.5 (9th Cir. 1998) (citing American States Ins. Co. v. Kearns, 15 F.3d 142, 15 145 (9th Cir. 1994)). 16 B. Choice-of-Law 17 In an action based on diversity jurisdiction, the court applies the choice-of-law principles 18 of the forum state. Aqua-Marine Constructors, Inc. v. Banks, 110 F.3d 663, 670 (9th Cir. 1997). 19 Nevada courts enforce contractual choice of law provisions if the jurisdiction set by the agreement 20 has a substantial relationship with the transaction and the agreement is not contrary to Nevada 21 public policy. Pentax Corp. v. Boyd, 904 P.2d 1024, 1026 (Nev. 1995). To determine whether a 22 state possesses a substantial relationship with a contract, courts consider five factors: “(1) the place 23 of contracting, (2) the place of negotiation of the contract, (3) the place of performance, (4) the 24 location of the subject matter of the contract, and (5) the domicile, residence, nationality, place of 25 incorporation and place of business of the parties.” Consolidated Generator-Nev. Inc. v. Cummins 26 Engine Co., Inc., 971 P.2d 1251, 1253-54 (Nev. 1998) (citations omitted). 27 C. Motion to Stay 28 Minnesota Statute § 572B.07, cmt f: “Motion to Compel or Stay Arbitration” provides that, 1 “If the court orders arbitration, the court shall on just terms stay any judicial proceeding that 2 involves a claim subject to the arbitration. If a claim subject to the arbitration is severable, the 3 court may sever it and limit the stay to that claim.” 4 V. DISCUSSION 5 A. Motion for Remand 6 Catalina argues that the action should be remanded to the Eighth Judicial District Court, 7 and that the Brillhart factors, such as avoiding needless determination of state law issues and 8 avoiding duplicative litigation, weigh in favor of the Court exercising its discretion to decline 9 jurisdiction of this case’s declaratory relief claim. ECF No. 28; Brillhart v. Excess Ins. Co. of 10 America, 316 U.S. 491 (1942); Gov’t Employees Ins. Co. v. Dizol, 133 F.3d 1220

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Triunfo, Inc. v. Global Graphic Resources LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/triunfo-inc-v-global-graphic-resources-llc-nvd-2021.