Loomis v. Whitehead
Loomis v. Whitehead
Dissenting Opinion
dissenting:
The majority holds that Shanahan and Loomis’s causes of action are not barred by NRS 602.070 because Whitehead (1) entered into a contract with one of the partners of 52 Cattle Company, not the partnership; and (2) was not misled by either of the two partners into thinking he was doing business with 52 Cattle Company. I must dissent because the majority misapplies an unambiguous statute, misapprehends the record before the district court, and, confusingly, adopts the bright line test from the dissent in Brad Associates v. Nevada Federal Financial
NRS 602.070 precludes any person doing business under an unregistered fictitious name from commencing or maintaining (1) any action on a contract made in the fictitious name or (2) “any cause of action arising or growing out of the business conducted’ ’ under the fictitious name.
The record below demonstrates that Shanahan and Loomis’s claims against Whitehead arose or grew out of “the business” conducted under 52 Cattle Company. Shanahan and Loomis were deposed after the joint case conference report was filed in the district court. According to this testimony, since approximately 1983, Shanahan and Loomis have been partners doing business as 52 Cattle Company for the purpose of buying, running, and selling cattle. Under the terms of their oral partnership agreement, Shanahan would manage the cattle, Loomis would pay all costs, the parties would generally share decision-making, and the net profits re-
Based on the deposition testimony, Whitehead filed a motion for summary judgment, seeking dismissal of any claims by Shanahan individually because Shanahan had admitted that he did not own any cattle placed on Whitehead’s ranch. In opposition, Shanahan and Loomis agreed that the cattle at issue were partnership cattle bearing the “52” brand. Shanahan conceded in his opposition to Whitehead’s motion for summary judgment that, but for the existence of the 52 Cattle Company partnership, Shanahan would not have a claim against Whitehead. However, Shanahan and Loomis argued that “it is obvious that Shanahan has a 50% partnership interest in the cattle” and, under the Nevada Uniform Partnership Act in effect at the time this action arose, partners were required to sue as individuals to enforce a partnership claim.
In response to Shanahan and Loomis’s opposition to Whitehead’s motion for summary judgment, Whitehead voluntarily withdrew the motion and filed a new motion for summary judgment, seeking dismissal of both Shanahan and Loomis’s claims, under NRS 602.070, because their claims arose or grew out of the business of the 52 Cattle Company, an unregistered fictitious name. Based on facts admitted by Shanahan and Loomis in deposition testimony and in opposition to Whitehead’s first motion for summary judgment, the complaint is barred by the second prohibition contained in NRS 602.070. On this record, the district court correctly granted summary judgment against Shanahan and Loomis.
Applying the holding in Brad Associates, the majority also reverses summary judgment because Whitehead did not allege that he was misled by either Shanahan or Loomis into thinking he was doing business with the 52 Cattle Company.
The majority in this case repeats the same analytical defect committed by the court in Brad Associates. Without describing the alleged ambiguity, the majority simply declares that NRS 602.010, NRS 602.020, and NRS 602.070, when read together, “are ambiguous when applied to a partnership business that is not conducted solely through the fictitious name.”
To echo Justice Young’s lament in Brad Associates, in this case, the majority once again fails “to give practitioners and district
For these reasons, I dissent.
109 Nev. 145, 848 P.2d 1064 (1993).
NRS 602.070 provides in full as follows:
No action may be commenced or maintained by any person, mentioned in NRS 602.010, or by an assignee of such a person, upon or on account of any contract made or transaction had under the assumed or fictitious name, or upon or on account of any cause of action arising or growing out of the business conducted under that name, unless before the commencement of the action the certificate required by NRS 602.010 has been filed.
Proprietors of the Mexican Mill v. The Yellow Jacket Silver Mining Co., 40 Nev. 40, 42-43 (1868). See 2005 Nev. Stat., ch. 128, § 39, at 428, which amended the Uniform Partnership Act (1997) effective July 1, 2006, permitting a partnership to bring an action in its fictitious name. NRS 87.4331.
See majority opinion ante p. 69.
See majority opinion ante p. 69.
I agree with the Brad Associates majority that NRS Chapter 602 does not apply to claims by individual partners for personal claims against third parties. As the facts in this case demonstrate, however, Shanahan and Loomis admit that their claims arose or grew out of the 52 Cattle Company partnership.
See Richardson Construction v. Clark County School District, 123 Nev. 61, 64, 156 P.3d 21, 23 (2007) (footnotes omitted) in which this court stated,
The construction of a statute should give effect to the Legislature’s intent. In determining the Legislature’s intent, we may look no further than any unambiguous, plain statutory language. In the absence of such language, we must examine the statute in the context of the entire statutory scheme, reason, and public policy to effect a construction that reflects the Legislature’s intent.
Brad Associates, 109 Nev. at 150, 848 P.2d at 1067 (Young, L, dissenting).
See majority opinion ante p. 70.
See majority opinion ante p. 70-71.
Brad Associates, 109 Nev. at 150, 848 P.2d at 1067 (Young, J., dissenting).
Opinion of the Court
CORRECTED OPINION
In this appeal, we address whether NRS 602.070 bars the partners of an unregistered fictitious name partnership from bringing an action arising out of a business agreement that was not made under the fictitious name. NRS 602.070 prohibits persons who fail to file an assumed or fictitious name certificate from suing on any contract or agreement made under the assumed or fictitious name. We conclude that NRS 602.070 does not bar the partners from bringing the action so long as the partners did not conduct the business or enter into an agreement under the fictitious name or otherwise mislead the other party into thinking that he was doing business with some entity other than the partners themselves.
BACKGROUND FACTS
Appellants Leroy Loomis and David R. Shanahan raised and sold cattle in Elko County, Nevada. Each of the appellants had cer
In the fall of 2003, Shanahan entered into a verbal agreement with Whitehead, a rancher, through Whitehead’s ranch foreman to have their cattle wintered at Whitehead’s ranch. Neither Loomis nor Whitehead was present when the ranch foreman made the deal with Shanahan, but the parties agree that there was no mention of the 52 Cattle Company at the time they entered into the agreement or anytime during the course of business thereafter. Shanahan and Loomis subsequently alleged that their cattle were malnourished and that a number of their cattle died from starvation that winter at Whitehead’s ranch. Whitehead denied these allegations.
Suit against Whitehead
The following summer, Shanahan and Loomis sued Whitehead, claiming negligence and breach of contract.
Whitehead then filed a motion for partial summary judgment, asserting that, pursuant to NRS 602.070, Loomis and Shanahan’s failure to register their fictitiously named partnership with the county clerk barred them from bringing a legal action. The district court agreed with Whitehead, granted the motion, and dismissed Loomis and Shanahan’s claims. Loomis and Shanahan timely appealed.
DISCUSSION
The district court found that Loomis and Shanahan conducted business under a fictitious name without filing a fictitious name
Loomis and Shanahan contend that the district court erred in granting partial summary judgment because they did not enter into a contract with Whitehead under the name of the 52 Cattle Company, and they did not conduct business with Whitehead under that name. Loomis and Shanahan argue that NRS 602.070 is not applicable to their action against Whitehead because they did not mislead Whitehead into thinking that he was doing business with anyone other than them. We agree.
Standard of review
This court reviews a district court order granting summary judgment de novo, without deference to the district court’s findings.
NRS 602.070
This case turns on the language of NRS 602.070, which provides as follows:
*69 Commencement of action barred when certificate not filed. No action may be commenced or maintained by any person, mentioned in NRS 602.010, or by an assignee of such a person, upon or on account of any contract made or transactions had under the assumed or fictitious name, or upon or on account of any cause of action arising or growing out of the business conducted under that name, unless before the commencement of the action the certificate required by NRS 602.010 has been filed.
(Emphases added.)
When looking at a statute’s language, this court is bound to follow the statute’s plain meaning, unless the plain meaning was clearly not intended.
Here, Whitehead knew that Shanahan entered into the oral contract under his own name. He initially thought that Shanahan owned the cattle and Loomis had “some type of interest.” Shanahan did not enter into the contract under the fictitious “52 Cattle Company” name. Moreover, Whitehead does not allege that he was misled by either Loomis or Shanahan in any way that would cause him to think he was doing business with the 52 Cattle Company. In fact, Whitehead did not know of the 52 Cattle Company until Shanahan mentioned it in his deposition. Under these circumstances, when there simply was no indication that Loomis and Shanahan represented that they were conducting business as the 52 Cattle Company and no reliance by Whitehead that he was doing business with the 52 Cattle Company, NRS 602.070 does not bar the suit against Whitehead.
This court has previously considered the matter of individual partners’ standing in the context of NRS 602.070. In Brad Associates v. Nevada Federal Financial, this court concluded that failure to register with the county clerk does not automatically bar
Brad Associates v. Nevada Federal Financial
In Brad, individual partners in a real estate venture, along with the partnership itself, filed suit against their lender. The partnership conducted the business of the enterprise under the fictitious name “Brad Associates.” The district court dismissed the action under NRS 602.070 because the partners had failed to file a fictitious name certificate for the partnership, as required under NRS 602.010, containing the names and places of residence of the partners, as described in NRS 602.020. The district court reasoned that the action could not be maintained because the cause of action arose out of partnership affairs. The Brad majority reversed the dismissal of the action as to the partnership because the lender knew exactly with whom it had done business and the certificate would have provided no additional information beyond that available to the lender at all times during the course of its dealings with the partners and the partnership. The majority in Brad concluded that enforcing NRS 602.090 in that instance would classically exalt “form over substance,”
Although the Brad majority did not undertake an ambiguity analysis in construing NRS 602.010, NRS 602.020, and NRS 602.070, when read together, these statutes are ambiguous when applied to a partnership business that is not conducted solely through the fictitious name. However, Brad correctly resolved the ambiguity with regard to actions prosecuted by individual partners in connection with partnership affairs. In this, the Brad majority properly looked to the purpose of the statute to achieve the result that the statute was designed to effect — fraud prevention and the provision of public information. Having said this, we now restrict the reach of that decision as urged by Justice Young in his separate dissent. Maintenance of an action by an unregistered partnership,
We therefore reverse the district court’s partial summary judgment in this instance and remand for trial because, while the lawsuit between Loomis and Whitehead involved partnership business, the transaction at issue was not conducted and the subsequent suit was not maintained under the aegis of the fictitiously named partnership.
This corrected opinion is issued in place of the opinion filed February 28, 2008.
Four other plaintiffs were involved in Loomis and Shanahan’s suit against Whitehead; those plaintiffs are not involved in this appeal.
Because the district court’s partial summary judgment pertained only to Loomis and Shanahan’s claims and the other plaintiffs’ claims remained pend
NRS 602.010(1) provides,
Every person doing business in this state under an assumed or fictitious name that is in any way different from the legal name of each person who owns an interest in the business must file with the county clerk of each county in which the business is being conducted a certificate containing the information required by NRS 602.020.
Wood v. Safeway, Inc., 121 Nev. 724, 729, 121 P.3d 1026, 1029 (2005).
Id. at 731, 121 P.3d at 1031.
Id. (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986)).
Harris Assocs. v. Clark County Sch. Dist., 119 Nev. 638, 641-42, 81 P.3d 532, 534 (2003).
See Webster’s II New College Dictionary 1229 (3d ed. 2005) (giving the example of “entered the country under a false name” (emphasis added)).
Brad Assocs. v. Nevada Fed. Financial, 109 Nev. 145, 149, 848 P.2d 1064, 1066 (1993).
109 Nev. 145, 848 P.2d 1064 (1993).
Reference
- Full Case Name
- LEROY LOOMIS and DAVID R. SHANAHAN, Appellants, v. JERRY CARR WHITEHEAD, Dba THORPE CREEK RANCHES, Respondent
- Cited By
- 8 cases
- Status
- Published