Senanayake vs Solarmission Technologies, Inc.

Filing 90

ORDER granting 62 Motion to Dismiss. Clerk shall enter judgment. Defendants Roger Davey and Enviomission terminated. Signed by Judge Brian E. Sandoval on 08/12/09. (Copies have been distributed pursuant to the NEF - LG)

FLE ID

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UNI ED STATES DI TRI T COURT T @C
D I TR I T O F NEVA D A S C

DAYA SENANAYAKE,an i di i ual n vd ,
P l itl, ani

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O R DER

V.

DAV I RO DL1 an i di i ual ROG ER D , n vd , DAV EY,an i dii ual and n vd , ENV I O M I SI N LTD. an Austal n R SO ri a cor or ton,and SO LAR M I S I N p ai SO TEC HN O LO G I S,I C . a Nevada E N, cor or ton, p ai Def ndant . e s

C urenty bef r t e Cour i Def ndant Roger Davey and Enviom i si n LTD.s rl oe h ts e s r so '

Mot nt Dim is( 62) i donMay5, i o s s # fe o l 2009.Plit f aSen na a e(senan y k 'fld a n i Day f a yk ' i a a e' i )e an Oppost n t RogerDav y an En iom ison L d' Mot n t Dim is ( 8 )on Juy 5, io o i e d vr s i t s i o s s # 2 o l 2009, d a Era at Pl it ' Opp sion( 8 )onJ l 1 , 009.Def nd nsfe a Repl an n r t o a n i s o t # 4 s i uy 6 2 e a t id l y
21 22

( 83 onJuy 1 , 9. #) l 7 200
BA C KG RO UN D

O n J nuar 27,20 9,Sen na ak fld a Fi tAmen ed Ve iid Complit( 35) ay 0 a y ei e r s d rf e an #
23

agais v ro s d f n an s icu ig Rog r Dpv y (Da ey' an En i nm ison Ld. n t a iu e e d t n ld n e e ' v ' d vr s i t ' ) o
24

(En ion ison ) Ac or igt t eal ga in i t ec m plit Da eyi anidii u l h s ' vr m s i n. c d n o h l to s n h o a n , v s n vd a w o e i e
25 26
27

desd n e i i Cer s,Vit r ,Au tal . Fi tAmen e Complit( 35)a 2. Th d ie c s n r e co i a sr i ' r a' s dd an # t e
com pl i tf rherst t s t atDavey 's a pur ored diec orand pr si ent'ofSol r isi n an ut ae h ' i pt rt ed ' aM s o
T echnol gi s,l c. a Nevada cor or ton, oe n, p a i and i t atcapaci D avey ' ut orzed, r c ed or nh t y 'hi a die t

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1 padiiat d'i varousactons' n behalofSMT't atdamaged Senanayake and SMT.L= cp e 'n i ii o f 'h d.
2 Ast Enviom isi n, he com pl itst t st atii ' nAustal n cor or ton, ih is prnci al o r so t a n a e h ts ' a ri a p ai w t t i p

3 plce ofbusiess i Vit ra, r l . L=.Accor ig t t e complit d nviom isin has a n n co i Austa i ' d a' dn o h a n ,' r s o E
4 tansac ed busi ess i t e St t ofNevada bydiectng isac iii s i t Nevada when im ade r t n n h ae r i t tvte n o t 5 a m er erofert SMT,and when im ade a s ock exchange ofert aIshar hol er ofSMT, g fo t t foI e ds

6 f rt e acquiiin ofmaj rt contolofSMT,a Nevada cor or ton. L=. 2- . oh sto o iy r p a i ' d at 3 ' 7 Dav y and Enviom isi n ( ol ctvel r f red t her i as ' ef ndant ' fld t e e r s o c l i y ee r o en e De s' i h )e
8 curentm oton t dim i s on t e basi t att ey ' r bot r si ent ofAus r l and do not r i oss h sh h de a hed s ta i a 9 have sufii ntcont c s w i t e St t ofNevada f rt i Coud t fnd t at i has per onal fce at t h h ae o hs oi h t s

1 j r dit nov r h m . ( o i nt Dim is( 6 )a 2) Ac or igt De endan s l av yh s 0 u i c i e t e ' M to o s s # 2 t . c d n o f so ' t ,l e a D
11 onl been t t e St t ofNevada one tm e,and t atwas t m eetwih ator eys on behal of y oh ae i h o t tn f 1 Sol r isi n i r gar t t e pr sentacton. 1 . Enviom isin si i r lck su iin 2 aM s o n e d o h e i '. 'i r s o m l l a s l ce t ay
.

1 cont ct wih Nevada becaus i 1has neverm ar et d, i ied, diec ed is actvii s i t 3 as t e t1 k e solct or r t t i te n o

1 t e St t o Ne a a, L .Mor o er Def n an sar u t at$J e al g d ac insun er ig 4 h ae f v d ' d '= e v , e d t g e h ;th l e t ( e o d ln y
1 t e cl i s agai stDavey and Enviom isi n di nott ke pl c i Nevada,wer notdiec ed 5 h am n r so d a aen e rt

1 t war Nev d , d ca no f r a b ssf rper o alur ditont exs wi i t e St t of 6o d a a an n t o m a i o s n j i c i o it t n h a e s h
l Nevada. L=. 3. 7 ' d at '
1 8 DI C USSI N S O

1 9 A pl it fh st e bu den o es abl hig t att e cour ha peron lur diton ov r ani a h r f ft inh h s t s s a j i ci e s 2 ade end n . Bos he t v.l nsn , F.d 1 1 ,1 15 ( t Ci. 008) It e dititc ur 0 f at c to la io 539 3 0 1 0 9 h r 2 . f h sr o t c
21 deci es t e moton wihoutan evi entar hearng,t en t e cour l nl i quies i t whet er dh i t d iy ihh tl y n r n o o h

22 t e pl it r pe digs an a f a i mak a prm a f ce sh w ig ofp r onalur dit n. h a n i s la n f d fi vt ds e i ai o n es j i ci ' s o' 23 L . it r al ot t ns an ct to s om ied) ' nc n r v red al ga i ns i t e plit r d ( e n qu a i =n o d ia in t . ' o to e t l to n h an i s t U e f

24 c m plit mu t b t k n a tu , an 'con l t b t een t e pa is ov rs aemens o a n s e a e s r e ' d ' l fi s e w ' E c h de e tt t
25 cont ied i afiavi mustbe r soled i t e pl itl' f vor' Lan n fd t s e v n h an i s a . du

2 6
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l henn f der l t t t go er sp r on lurs iton,h dititc urappl st e Iw l W o e a sa u e v n e s a j id c i t e s r o t i h a c e

2 of h f r m sa e. L= ' nderNev da' In - r sat t ,h Cou t j rs itoni asbr ad 7 te o u tt ' d ' 'U a s o g a m t ue t e r' u idc i s s o

1 as aut orzed by due pr cess undert e Unied St t s Const u i n.l Kl i v Fr edom hi o h t ae i to ' t ' en e
.

2 Stat ai Parner ,595 F. upp. d 1152,1157- 8 ( .Nev. re c t s sz 5D zooglciig Ar el Mut I s.Co. t tn b l a .n

3 v,Ei h h J dii l s .Coud,1 2 Nev. 9,1 4 P. d 71 , 2 ( e . 6). Du pr c s c t u ca Dit 2 50 3 3 0 71 N v 200 ) e o e s
4 r quies t at a def ndant have ' i i um cont c s'w ih t e f r m st t ,'such t att e erh e ' nm m a t ' t h ou ae ' d hh

5 mait n n eof h sut esn t fen tadion l ot nsofaiplyands b t n ilu t e.' ne a c t e ido o o f d r t a n i i o fr a u sa t jsi ' a c'
6 Ri Pr ns.lc. Ri Itlnt rik,284 F. d 1007,1019( t Ci. o o .n v. o n 'I e ln 3 9 h rzoozlquotngItl t i n 'ShoeCo.

7 v. ashic on, 6 U. .31 ,31 ,6 S. t 1 4, L. d. ( 945). Th r ar t o f r s W n t 32 S 0 6 6 C . 5 90 E 95 1 ) e e e w o m # of er onalur dito t at f r m sat ma ex r ieov r n nr sien de en an - er l p s j i cin h a o u t e y e cs e a o e d t f d t gen a s 9 j r ditona ds e icj rs iton.Bos h to, 39 F. da 1 1 . I t i ma t r Se ana a e u i ci n p cf u id ci s i c et 5 3 t 0 6 n hs te , n y k 1 a gu st a t e Cour h sbo h gen r l d s ecf j rs it nov rt e De en an s. 0 r e h th ta t e a an p ic u idc i i o eh fd t
11 A. Gener lJursdi ton a i ci

1 2

I or er oex r ie g ner lur dit n, ' e en an ' c n a t wi af r m I us b ) n d t e cs e a j i ci a ' f d t o t c s t o u m t e so d s h

1 so subst ntalcontnuous, 3 a i, i and syst m atc t att e def ndantcan be deem ed t be d r sent e ih h e o pe '

1 i t a f r m f ralpur os s' Menk nv. 4 n h to u o I p e . ' e Emm , 3 F.d 1 50,1 57 ( t Ci 200 ) Her , 50 3 0 0 9h r 7 . e . 1 t eCoudfnd t a t er i nog n r l eronalur ditonov r h De en an s.Sen nay k 5h i s h th e s e e a p s j i ci e t e f d t s a ae
1 c ncedes t at bot Davey and Enviom i si n ar r si ent of Aus r l . M or over 6o h h r so e ed s ta i a e , 1 Senanayake does notpr vi e anyevi enc t atDef ndant have subst ntalcontnuous,or 7 od d eh e s a i, i

1 s s emat co t c swih Ne ada. Ra h r Sen na ak ' ar um en f rg n r lur diton 8 y t i na t t v c t e , a y es g t o e e a j i ci s
1 r l t s t Davey and Enviom isi n' i t r c i ns wih SMT, a Nevada cor or ton. 9 ea e o r s o s n e a to t p ai

2 Specf al , ana ak ar ue t at f n an sar su j c t j r diton i Nev da ba ed 0 ic l Sen y e g s h De e d t e be t o u i ci n a iy s s
21 on t e f ctt at Davey was a diect rofSMT f rsever lyear ,and Envionm isi n was hah ro o a s r so
22 i vol ed i m er ernegotatonswih SM T.Howev r t ese asseri nsal ne ar notsufi i nt nv n g ii t e ,h t o o e fce

2 t i p s gen r lur dito o t e Def n an s Assu h,hi c s i s bec t dim is l 3 o m o e e a j i c in n h s e d t. c t s a e s u j to s s a 2 une ss ecf j r dit n c n b i pos d. 4 ls p ii u i ci a e m e cso
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pecfc ly, iial NRS 1 .654 )sae t a:.A c u tofti saema e ecs j rs ito o e 40 1 tts h t . o r h s tt y x rie u id cin v r 28 a Pa t t a c vi a ton on a y ta i not i co sse t wih t e Cons iuton of t i sa e (r t e ry ? i l c i n ss n n it n t h tt i h s tt ) h
C ons luton oft e U nied St t s.tt l h t ae 3

S

1 2

B.

Specii Jursdi ton fc i ci

The Nit Cicuiappl sat r e- ad t s t det r i e l het er he exer i e ofspecii nh r t i e he p e to e m n w h t cs fc

3 j rs it n o era no r sden de end n i appr pr t . Bos h to, F.d a 1 1 . u id c i v o n e i t f a ts o i e ' c e t 539 3 t 0 6 a 4
5

( ) Th n n r sden de en an mus pur o e ul di c hi a t iis or 1 e o -e i t f d t t p s f l r t s c i te ye v
consum m at som e tansacton w ih t e f r m orr si entt er of orperor e r i t h ou ed he! ' fm som e ac by whi h he pur osef l avai hi s loft e prvi ges ofconductng t c p ul y l m ef h i l s e i ac i ii s i t e f r m t er by i voki g t e beneft and pr t ctons oft e Iw s' tvte n h o u h e n nh i s oe i ha,

6 7

( )t e cli mu tb on whih ar es ou o orr lt s t t e de end n ' 2 h am s e e c i s t f ea e o h f a ts f r m -elt dac iies an ( ) h ex r ieofu idit nmu t om porw i f i o u r a e t t ' d 3 t e e cs j r c i vi , so sc t t ar h plyand s bsan i lusie,. .im u tbe r a onabl. a u t t j tc i t s a e es e

8 L=.' he pl it fbear t e bur enont e frtt o pr ngs. L=.It e pl itf f i att e fr t d' T ani f sh d h is w o ' d f h a n ifa l h is ' s

9 s e ,' e j r dit n ln ui end an t e c s m u tb ds is d. L= t p 'h u i c i a iq r t so y s d h a e s e im s e ' d. '
1 0 l t ei m oton t dim is,Def ndant ar ue t att ey ar b0t r si ent ofAus r l nh r i o s s e sg h h e hed s ta i a 11 ' nd do nothave sufi i ntcont c s wih t e St t ofNevada f rt i Cour t fnd t ati has ' a fe c at t h ae o hs to i h t

1 p r on lur dit n ov rt em . ( o in t Dim is( 62)a 2) Ac or ig t De end ns, 2 e s a j i c i e h ' M to o s s # so t . c dn o f a t 1 ' l ef uca ys i l do tiebar Da e fom beigs be t op r on lur dit ni Ne a a 3 I h i ir he d c rn td s v yr n u jc t e s a j i ci n v d so
1 b s d u onaci n I et ok a Pr sden o I MTI'..a 4.Mor ov r ' a ey idiiual , 4 ae p t s h o ) s e i t fS . $u t o ' e e ,' v ,n vd l D y 1 d es n th v su f i n c n a t wi t e St t o Ne a a t be su j c t s iIh r l' L5 o o a e fi e t o t c s t h a e f v d o c h be t o ut t e e . d.
1 ' iew ie, Enviom i si n I cks sufii nt cont c wih Nevada' because 't has nev r 6 'k s L r so a fce at t ' ' i e
1 conduc ed busi ess w ihi t e St t ofNevada. .$= I r s ons , 7 t n tnh ae ' n e p e Senanayak cl i st athe e am h t

1 c ud h s s ecf j r dit n ov rDav y b c u e h I t d hs bu ies r sd n e as 9 5 8 o a p ic u i c i e iso e e a s e i e i sn s e ie c s 9
1 For stSteet Reno, 9 e r, Nevada 89509 ont e flngsf rSMT wiht e Nevada Secr t w ofSt t , hi i o th ea ae

2 a d b c us he aced a ' pur ored di c or f ra Nev d c r or t nz ( p ost n t 0 n ea e t s' p t r t 'o a e' a a o p a i . O p io o o i 21 Mo i n t Dim is ( 82)at3) I t i r g r ,Senan y k as eds t a Da ey s b itd t o ss# o . n hs e a d a ae s h t v u m te

2 hi s lt j r dit nasanidii u l eca s h i i no h l sh r h ler ee i g ' or 2 m ef o u i c i so n vd a b u e e i d t o d a e o d m tn s' SMT d f 2 an t u ' i lt d ( i)f uca y du is' o t a c m pan . . at3 4. Ast En i m iso , 3 d h s i oa e hs i ir t 't h t o v d e yI . t o v r s in o 2 Sena a a e ar ues t ati i s bec t sp cfc j r dit n b c u e En i m ison wa 4 nyk g h t s u j t o e i u i ci e a s iso vr s i o s
25 engaged i m er ernegotatons wih SMT and SM T i 1 cor or ton r git r d i Nev da n g ii t s1 a p a i e se e n a
26 27 2 A c or i g t Se a a a e. a o , has s fi i ntc nt c w ih N eva a bec us he f l d a nua c dn o n n y k D v u tc e o a t t d a e ie n l 28 r t r sa d o he doc m e t on SM T ' be a fw ih t e N eva a Sec e a y ofSt t . See O p os ton t eun n t r u n s S hl t h d rtr ae p ii o

M oton t Dim is( 82)a 7) i o ss/ t.

l undert e Iw s of Nevada w ih a Regit r d Ofi e i Nevada and a Regit r d Agenti ha t see fc n se e n

2 Nevada. L- at13. Speciial ,Senanayak al ges t atEnviom isi n made an olert ' du fc l y el e h r so o
3 SMT shar hol er t ' xchange shar s hel i a Nevada cor or ton. L= e d sod e e dn p a i ' d. '
4 ' nder hefduci r shi l docti e, per on' mer associtonw iha cor or tont at U t i a y ed rn a s s e ai t p ai h

5 c u es ij r i t e f r m sat i no su f i n i i el t p r i t a f r m t as er a s n u y n h o u t e s t fi e t n t f o e m t h t o u o s t c s
6 j r dit n ov rt e p ron. Da i v. r Pr d . I c,8 5 F.d 51 , 2O ( t Ci.1 89) u i c i e h e s ' vs Meto o s . n . 8 2 5 5 9 h r 9 . so '
7 ' he Nevada Supr m e Coud has notdet r i ed t e s at s oft e fduci r shi l doc rne i ' T e em n h t u h i a y ed ti n 8 Nevada,and ot erc urs diagr e as t t e ext n ofi appl aton. Kl i ,595 F. upp. d h ot s e oh et t s i i ' en c ' s z 9 at 1158. ' evedhel ss,pr c dentfom t e Uni d St t s Supr m e Cour and t e Ni t d N e ee r h t e ae e t h nh

1 Cicui est bl hes t at any appl aton of t e fduci r shi l docti e i I i d. L= 0 rt ai s h ii c h i a y ed rn s i t ' d. me '

1 ' p cfc l , t o gh t e Cou t ann tac ui p r on lur diton o eremply esb s d 1 ' e i al al u h S iy h r c o q r e s a j i ci v e s oe ae
1 on t ei em plyer 'f r m actvies,dhei s at s as em pl yees does notsom ehow i sult 2 hr o s ou it i t rt u o n ae

1 t em fom j rs it n.'d.quo ig Da i, 5 F.d at5 1 . Ra h r 'he c u t u t s s 3 h r u id c i 'L- ( tn vs 88 2 o' 2 ) t e ,i o r m s as e s t
1 each def ndants cont c s i dii ual . I4 e ' a t n v d l ' Jv y
.

15

I t i m ater assessi g Davey' cont ct i di i ual , he Cour fnds t atDavey di n hs t, n s a s n vd l t y ti h d

16 not m ait i cont c s wih Nevada sufii ntt aut orze t i Coud t exer ie per onal nan at t fce o h i hs o cs s

1 j rs it n ov rhm i an idiiu lc pact . As n t d i t e c m pl it Da ey i no a 7 u idc i o ein n vd a a i y o e n h o an , v s t
1 r si ent of Nevada. I addii n, Davey has pr vi ed evi ence t at he ' as onl been t 8 ed n to od d h d h y o

1 Ne ada on tm e,a d t at t mee wi ator ey fom I M T)i r gar st t e pr s n 9 v ei n h was o t t tn sr S h ne d oh eet

2 Iws i' ( ot nt Dim is ( 62 a Exhbi 1 . Mor ov r Da ey h sno di ced busn s 0 a ut' M i o s s # ) t i t ) . o e e, v a t r t e ie s
21 actvii s t w ar Nevada,and none oft e act t atf r t e basi ofPl itf s cl i s t ok i te o d h s h om h s a n if a m o 22 pl c i Nevada.I. Al ou hSenan y k ar u st a t i Coud h sj r ditono er ey aen J. t g h a a e g e h t hs a u i c i v Dav , s
.

23 Senanayake hasf i d t show t atDav ypur osef lyavai d hi seli di i ual t Nevada. al o e h e p ul l m fn vd l o e y 24 Rat er Senanayak f cuses on t e f c t atDavey was a diect rand ofierofa Nevada h, eo h ath ro fc 25 cor or ton and t ok ac i n i t atcapaciy. However any f r m -el t d cont c by Davey p ai o to n h t , o u r ae at 26 w asm ade on behaloft e cor or ton.Senanayak di notal ge t atDaveywasconductng fh p ai ed l eh i 27 busi essi Nevada i an i dii ual n n n n v d capaciy,or hatDaveywas conductng per onal tvii s t t i s ac i te 28 i Nevada.Based on t e f r goi g, sm i sal t e cl i s agai stDaveyf rl ckofper onal n h o e n di s of h a m n oa s
5

1 j rs it n i appr pr t . u idc i s o o ie a
2 I addii n,t e cl i s agai s Enviom isi n ar alo di m ised f rI ck ofper onal n to h a m nt r so es ss oa s

3 j r diton. Lie Da ey, En i m ison i no a r sd n of Nev d . l ad ion, u i ci s k v vr s i s t e ie t o a a n dt i
4 Enviom i si n' al ged m er er actvii s wih SM T di notcr at sufi i nt cont ct wih r sos l e g i te t d ee fe c as t

5 Nev da t a t or e t i Coud t e er ie per on lj r diton ov r i. Specfc l , a o u h i hs z o x cs s a u i ci s et iia l y
6 Enviom isi n neverm ar et d,sol ied orconduc ed busi ess actvii s w ihi t e St t of r so ke it c t n i te t n h a e

7 Nev d , ddi no diec i aciiest war Nev da.( o i nt Dim is( 62) Ex ii1 . a a an d t r tt tvt o d a s i M to o s s # at hbt )
8 Alhough Enviom isi nw asengaged i mer ernegotatonsw i SM T,hose negotatonshad t r so n g ii t h t ii 9 no r lton t t i f r m ou si e t e f ctt atSM T i a Nevada cor or ton. I t i r gar , e a i o hs o u td h a h s p ai n hs e d
1 none oft e negotatons oc ur ed w ihi Nevada, w er any oft e r pr s nt tves ofeihe r 0 h ii cr tn nor e h e ee ai t

11 Enviom isi n or SM T r si ent of Nevada. $= Mor ov r t e mer erneveroccured. r so ed s . e e ,h g r
.

1 Fi al ,t e st ck exchange oRer m ade by Enviom isi n t SMT di not cr at sufi i nt 2 nl h o y r so o d e e fc e 1 con ac s because none oft e shar hol er orwaranthol er ofSMT wer I cat d w ihi t e 3 tt h e ds r ds eo e t nh

1 St t o Ne a a.Assu h, hi Cour lc sper on lur dit nov rEnvr m ison. 4 ae f v d c ts ta k s a j i ci soe i si o
15
1 6

CONCLUSI N O
Based on t e f r goi g, I I O RD ER ED t at Def ndant Roger Davey and h oe n T S h e s

1 En io isin L d. Mo i nt Dim is ( 62)i GRANTED. 7 vr m s o t ' to o s s # s s 1 8
l9 20 2l 22 23 24 25 26 27

Th Clr o t e Co r s alener u g en a c r igl. e ek fh u t h l t jd m t c odn y

D T D T i I d yo Au ut2 0 . A E : hs k a f g s, 0 9

U N I ED STAT S DI TR I T JUDGE T SC

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