282 P.3d 751
Nev.2012Background
- Nevada courts may exercise personal jurisdiction over nonresident officers/directors who directly harm a Nevada corporation.
- Consipio, a Nevada shareholder, filed derivative and injunctive claims against PRVT officers/directors for alleged self-serving conduct.
- PRVT is Nevada-incorporated with its principal place of business in Spain; respondents are European residents who visited Nevada only sporadically.
- District court granted motions to dismiss for lack of personal jurisdiction without an evidentiary hearing.
- NRS 78.135(1) provides a statutory basis for suits against officers/directors for violation of their authority, and creates notice that such actions may be pursued in Nevada.
- Court remands for further factual analysis to determine if jurisdiction over respondents is proper.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court may exercise personal jurisdiction over nonresident officers/directors | Consipio asserts sufficient minimum contacts due to direct harm to Nevada corporation | Respondents contend lack of Nevada contacts; no jurisdiction | Yes, jurisdiction may be exercised if conduct harmed Nevada and meets due process |
| Relation of NRS 78.135(1) to jurisdiction over officers/directors | Statute authorizes suits and provides notice; supports jurisdiction | Statute not automatically conclusive on jurisdiction | NRS 78.135(1) supports district court’s jurisdiction over officers/directors |
| Effect of Shaffer v. Heitner on jurisdiction | Shaffer does not bar jurisdiction where harm is to a Nevada citizen by Nevada corporation | Shaffer precludes jurisdiction absent state interest or explicit consent | Shaffer distinguished; no automatic bar where statute supports jurisdiction |
| Fiduciary shield doctrine applicability | Not applicable because Nevada long-arm reaches due process limits | Shield could shield personal liability | Fiduciary shield doctrine does not apply; long-arm reaches due process |
Key Cases Cited
- Trump v. District Court, 109 Nev. 687 (Nev. 1993) (minimum contacts; specific jurisdiction; due process)
- World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (U.S. 1980) (purposeful direction; reasonableness factors)
- Mizner v. Mizner, 84 Nev. 268 (Nev. 1968) (due process and jurisdictional standards)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (U.S. 1985) (purposeful availment; fair play and substantial justice)
- Internat. Shoe Co. v. Washington, 326 U.S. 310 (U.S. 1945) (general framework for jurisdiction)
- Jarstad v. National Farmers Union, 92 Nev. 380 (Nev. 1976) (purposeful contact; harm to forum exposed by actions)
- Emeterio v. Clint Hurt and Assocs., 114 Nev. 1031 (Nev. 1998) (reasonableness factors in jurisdiction)
- Shaffer v. Heitner, 433 U.S. 186 (U.S. 1977) (limits of jurisdiction absent direct forum connection)
- DeCook v. Environmental Sec. Corp., Inc., 258 N.W.2d 721 (Iowa 1977) (direct harm to domestic corporation; due process)
- Davis v. Metro Productions, Inc., 885 F.2d 515 (9th Cir. 1989) (fiduciary shield not controlling when statute expands jurisdiction)
