Goodwin v. John

District Court, D. Nevada

Goodwin v. John

Trial Court Opinion

1 UNITED STATES DISTRICT COURT

2 DISTRICT OF NEVADA

3 * * *

4 JULIE GOODWIN, an individual, Case No. 2:19-cv-01642-APG-EJY

5 Plaintiff,

6 v. ORDER

7 MATHEW JOHN, an individual; VALLEY INN MOTEL; MVJ CAR WASH & 8 LAUNDROMAT; MV JOHN CORPORATION, a Nevada corporation; and 9 Does 1-10, inclusive,

10 Defendants.

11 12 Pending before the Court are Plaintiff’s Motions for Orders Charging Judgment Debtor 13 Mathew John’s Stock in MV John Corporation, and Further Charging Judgment Debtor’s Interest in 14 MVJ Investments, LLC. ECF No. 148. No response to Plaintiff’s Motion was filed. 15 Under United States District Court for the District of Nevada Local Rule 7-2(d), Mr. John 16 and MV John Corporation’s failure to respond to Plaintiff’s Motions may be treated by the Court as 17 their consent to the Court granting the Motions. This alone would allow the Court to grant the 18 Motions for debtor exams requested. 19 Judgment was entered in this case on August 31, 2022. ECF No. 136. NRS 78.746 allows 20 the Court to enter a charging order against stock held by a judgment debtor. The statute states, in 21 pertinent part: “On application to a court of competent jurisdiction by any judgment creditor of a 22 stockholder, the court may charge the stockholder’s stock with payment of the unsatisfied amount 23 of the judgment with interest.” NRS 78.746(1). The statute further states that the provision of 24 section 1 “[a]pplies only to a corporation that … has fewer than 100 stockholders of record at any 25 time” and “is not publicly traded or a subsidiary of a publicly traded corporation …” Id. at 26 78.746(2)(c)(1), (2). The uncontested evidence in this case establishes that MV John Corporation 27 is solely owned by Mathew John and is not publicly traded. 1 Plaintiff’s collection rights also extend to remedies against MVJ Investments, LLC. NRS 2 86.401 states in pertinent part: “On application to a court of competent jurisdiction by any judgment 3 creditor of a member, the court may charge the member’s interest with payment of the unsatisfied 4 amount of the judgment with interest. To the extent so charged, the judgment creditor has only the 5 rights of an assignee of the member’s interest.” NRS 86.401(1) (referencing a member of a limited 6 liability company); see also Weddell v. H2O, Inc.,

271 P.3d 743, 749

(Nev. 2012). The Nevada 7 Secretary of State, Business Search, reveals MVJ Investments, Inc. is a Nevada limited liability 8 company and that Mr. John is a manager-member. SilverFlume Nevada's Business Portal to 9 start/manage your business (nv.gov).1 10 Based on the foregoing, IT IS HEREBY ORDERED that Plaintiff’s Motions for Orders 11 Charging Judgment Debtor Mathew John’s Stock in MV John Corporation, and Further Charging 12 Judgment Debtor’s Interest in MVJ Investments, LLC (ECF No. 148) is GRANTED. 13 IT IS FURTHER ORDERED that Mathew John and MV John Corporation must appear for 14 judgment debtor examinations on December 2, 2022 at 10 a.m. at the offices of Wolf, Rifkin, 15 Shapiro, Schulman & Rabkin, LLP, 3733 Howard Hughes Parkway, Suite 590, Las Vegas, Nevada 16 89169. 17 IT IS FURTHER ORDERED that this charging order is effective against judgment debtor 18 Mathew John’s stock in Defendant MV John Corporation, and further charging Judgment Debtor 19 Mathew John’s interest in MVJ Investments, LLC, with payment of the unsatisfied judgment until 20 such time as the judgment is satisfied in full. 21 IT IS FURTHER ORDERED that anyone served with this Order is hereby put on notice as 22 to the following: a. Pursuant to NRS 78.746, Judgment Creditor Julie Goodwin c/o Wolf, Rifkin, 23 Shapiro, Schulman & Rabkin, LLP, as Judgment Creditor of Mathew John, has applied and hereby 24 received order to charge the stock of Mathew John in Defendant MV John Corporation with payment 25 of the unsatisfied judgment. b. Pursuant to NRS 86.401, Judgment Creditor Julie Goodwin c/o 26 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP, as Judgment Creditor of Mathew John, has applied

27 1 Under Rule 201, the court can take judicial notice of “[p]ublic records and government documents available 1 || and hereby received order to charge Mathew John’s interest in MVJ Investments, LLC, wi 2 || payment of the unsatisfied judgment until such time as the judgment is satisfied in full. 3 IT IS FURTHER ORDERED that upon service of this Order to Defendant MV Jol 4 || Corporation and MVJ Investments, LLC, they are ordered to make distributions to Judgme 5 || Creditor Julie Goodwin c/o Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP, that the entities wou 6 || have made to Mathew John until the judgment is satisfied with interest. 7 Dated this 1st day of November, 2022. 8 9 Sau | a ee oc □ 10 UNITED 3 ATES WAG sts TE JUDGE 1] 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Reference

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