McDermed v. Aces High Management d/b/a Saddles West Hotel, Casino and RV Resort
Filing
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ORDER Denying 11 Motion to Dismiss for Lack of Jurisdiction. Defendant's request for settlement conference is referred to Magistrate Judge Lawrence R. Leavitt. Signed by Judge Roger L. Hunt on 6/10/2011. (Copies have been distributed pursuant to the NEF - SLR)
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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***
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KATHLEEN McDERMED,
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Plaintiff,
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vs.
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ACES HIGH MANAGEMENT d/b/a,
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SADDLE WEST HOTEL, CASINO and RV
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RESORT; ROE CORPORATIONS I-X,
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inclusive, and JOHN DOES I-X, inclusive,
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Defendants.
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_______________________________________)
Case No.: 2:10-cv-01087-RLH-LRL
ORDER
(Motion to Dismiss–#11)
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Before the Court is Defendant Aces High Management and Saddle West Hotel,
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Casino and RV Resort’s (“Saddle West”) Motion to Dismiss for Lack of Jurisdiction, or in the
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alternative, Request for Settlement Conference (#11, filed Jan. 4, 2011). The Court has also
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considered Plaintiff Kathleen McDermed’s Opposition (#16, filed Feb. 4, 2011), and Saddle
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West’s Reply (#14, filed Feb. 8, 2011).
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BACKGROUND
McDermed, a California resident, alleges that she slipped and fell on a wet
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sidewalk at the Saddle West Hotel, Casino RV Resort located in Pahrump, Nevada on July 6,
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2008. (Dkt. #11, Mot., 2:4–6.) McDermed alleges that Saddle West negligently allowed unsafe
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conditions on the hotel premises which caused McDermed’s fall and resulted in injuries to her
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knee, back, and other parts of her body. (Dkt. #1, Compl., ¶¶10-11.) Further, McDermed claims
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that her injuries required her to seek medical treatment for extreme physical pain. (Id. ¶¶12-13.)
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McDermed claims that her medical expenses to date are in excess of $38,205.54. Additionally,
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McDermed claims that the surgical procedures she is expected to undergo are anticipated to push
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her medical expenses in excess of $100,000.00.
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On July 1, 2010, McDermed filed suit based on diversity jurisdiction alleging
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negligence. Saddle West now asks the Court to dismiss the suit for lack of subject matter
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jurisdiction, or in the alternative, to order a settlement conference. Saddle West argues that
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McDermed’s medical expenses do not exceed $75,000, thus the Court does not have diversity
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jurisdiction over the suit. For the reasons discussed below, the Court denies Saddle West’s motion
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to dismiss and refers the request for settlement conference to Magistrate Judge Lawrence R.
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Leavitt.
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DISCUSSION
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Because dismissal of the case for lack of subject matter jurisdiction will end the
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Court’s ability to refer this case for a settlement conference, the Court first analyzes the
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jurisdictional issues Saddle West raises in its motion to dismiss.
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I.
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Saddle West’s Motion to Dismiss for Lack of Jurisdiction
A.
Legal Standard
“In this action, as in all actions before a federal court, the necessary and
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constitutional predicate for any decision is a determination that the court has jurisdiction–that is
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the power–to adjudicate the dispute.” Toumajian v. Frailey, 135 F.3d 648, 652 (9th Cir. 1998).
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Rule 12(b)(1) of the Federal Rules of Civil Procedure allows defendants to seek dismissal of a
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claim or action for lack of subject matter jurisdiction. Dismissal under Rule 12(b)(1) is
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appropriate if the complaint, considered in its entirety, fails to allege facts on its face that are
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sufficient to establish subject matter jurisdiction. In re Dynamic Random Access Memory (DRAM)
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Antitrust, 546 F.3d 981, 984-85 (9th Cir. 2008). Although the defendant is the moving party in a
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motion to dismiss brought under Rule 12(b)(1), the plaintiff is the party invoking the court’s
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jurisdiction. As a result, the plaintiff bears the burden of proving that the case is properly in
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federal court. McCauley v. Ford Motor Co., 264 F.3d 952, 957 (9th Cir. 2001) (citing McNutt v.
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General Motors Acceptance Corp., 298 U.S. 178, 189 (1936)).
Federal courts are courts of limited jurisdiction. Owen Equip & Erection Co. V.
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Kroger, 437 U.S. 365, 374 (1978). “A federal court is presumed to lack jurisdiction in a particular
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case unless the contrary affirmatively appears.” Stock West, Inc. V. Confederated Trives of the
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Colville Reservation, 873 F.2d 1221, 1225 (9th Cir. 1989). Subject matter jurisdiction is a
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threshold issue that goes to the power of the court to hear a case, thus the issue may be raised at
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any time and by any party. Fed. R. Civ. P. 12(b)(1); Fed. R. Civ. P. 12(h). A district court must
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dismiss a case when no subject matter jurisdiction exists. Fed. R. Civ. P. 12(h).
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A motion to dismiss pursuant to Federal Rules of Civil Procedure 12(b)(1) or
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12(h)(3) challenges the court’s subject matter jurisdiction. The Court accepts the allegations in the
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complaint as true when ruling on a motion to dismiss for lack of subject matter jurisdiction. Wolfe
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v. Strankman, 392 F.3d 358, 362 (9th Cir. 2004). The court, however, is not limited to the
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pleadings and may review evidence, including affidavits and testimony, to resolve factual disputes
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regarding jurisdiction. McCarthy v. United States, 850 F.2d 558, 5600 (9th Cir. 1988), cert.
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denied, 489 U.S. 1052, 109 S. Ct. 1312, 103 L. Ed. 581 (1989).
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B.
Diversity Jurisdiction
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To establish subject matter jurisdiction pursuant to diversity of citizenship, the
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party asserting jurisdiction must show: (1) complete diversity of citizenship among opposing
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parties, and (2) an amount in controversy exceeding $75,000. 28 U.S.C. § 1332(a). The Court
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will only examine the amount in controversy as Saddle West does not dispute that the parties are
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diverse.
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The Court generally determines the amount in controversy from the face of the
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pleadings. Pachinger v. MGM Grand Hotel-Las Vegas, Inc., 802 F.2d 362, 363 (9th Cir. 1986)
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(citing St. Paul Mercury Indemnity Co. V. Red Cab Co., 303 U.S. 283, 288-89, 822 L.Ed. 845, 58
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S. Ct. 586 (1938)). Unless the relevant law specifies a different rule, the plaintiff’s claimed sum of
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damages controls if the claim is made in apparent good faith. Id. at 363-64. To justify dismissal,
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the Court considers whether it is a legal certainty that the claim is really for less than the
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jurisdictional amount. Id. at 364. The legal certainty test is deferential to a plaintiff’s claim and
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makes securing dismissal for an insufficient amount in controversy very difficult. Id. A suit will
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only be dismissed if to a legal certainty, from the face of the pleadings, the plaintiff cannot recover
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the amount claimed, or if the court is satisfied to a legal certainty, from the evidence, that the
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plaintiff was never entitled to recover that amount. Sanchez v. Monumental Life Ins. Co., 102 F.3d
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398, 401 (9th Cir. 1996).
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Saddle West claims that McDermed can only show medical expenses totaling
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$38,205.54, however, McDermed’s complaint alleges current damages in excess of the $75,000
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required to establish jurisdiction. Further, McDermed alleges future medical expenses in excess of
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$100,000 following surgical procedures required to treat her injuries. (#16, Opp., 8:8–10.) Thus,
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on the face of the pleadings and upon reply to the defendant’s motion, McDermed adequately
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claims damages exceeding $75,000 for medical expenses and procedures. McDermed’s claimed
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sum is controlling because McDermed’s claim is made in apparent good faith. Although Saddle
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West has shown a possibility that McDermed may not recover damages in excess of $75,000,
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Saddle West has not established to a legal certainty that McDermed’s claim is really for less than
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the jurisdictional requirement. Accordingly, the Court denies the motion.
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II.
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Defendants’ Request for Settlement Conference
Under Federal Rule of Civil Procedure 16 and the Local Rules of Practice, the
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Court may grant a request for a settlement conference. Both parties agree that a settlement
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conference is appropriate. The request is thus referred to Magistrate Judge Lawrence R. Leavitt.
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CONCLUSION
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Accordingly, and for good cause appearing,
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IT IS HEREBY ORDERED that Defendant’s Motion to Dismiss (#11) is DENIED.
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IT IS FURTHER ORDERED that Defendant’s Request for Settlement Conference
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(#11) is referred to Magistrate Judge Lawrence R. Leavitt.
Dated: June 10, 2011
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____________________________________
ROGER L. HUNT
United States District Judge
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