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282 P.3d 751
Nev.
2012
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Background

  • 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)
Read the full case

Case Details

Case Name: Consipio Holding, BV v. Carlberg
Court Name: Nevada Supreme Court
Date Published: Aug 9, 2012
Citations: 282 P.3d 751; 2012 Nev. LEXIS 85; 128 Nev. Adv. Rep. 43; 2012 WL 3241913; 128 Nev. 454; No. 58128
Docket Number: No. 58128
Court Abbreviation: Nev.
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    Consipio Holding, BV v. Carlberg, 282 P.3d 751