Percival v. Dist. Ct. (Balangue) ( 2016 )

IN THE SUPREME COURT OF THE STATE OF NEVADA
WILLIAM PERCIVAL, AN No. 68063
INDIVIDUAL; PHILIP PERCIVAL, AN
INDIVIDUAL; AMERICAN GYPSUM,
LLC, A CALIFORNIA LIMITED
LIABILITY COMPANY; PPP, LLC, A
CALIFORNIA LIMITED LIABILITY FILED
COMPANY; DESERT GYPSUM
RESOURCES, LLC, A NEVADA APR 2 2 2016
LIMITED LIABILITY COMPANY; THE • LI •EMA
OFFICE OF THE PRESIDING
ALMONER OF THE HOUSE OF
I. it.-
PERCIVAL AND HIS SUCCESSORS, A
NEVADA CORPORATION SOLE; THE
OFFICE OF THE PRESIDING REGENT
OF PROSPERITY FELLOWSHIP AND
HIS SUCCESSORS, A NEVADA
CORPORATION SOLE; AND THE
OFFICE OF THE PRESIDING
REGENTS OF THE CHRISTIAN
AGRICULTURAL APOSTOLIC
COLLEGE AND HIS SUCCESSORS, A
NEVADA CORPORATION SOLE,
Petitioners,
vs.
THE EIGHTH JUDICIAL DISTRICT
COURT OF THE STATE OF NEVADA,
IN AND FOR THE COUNTY OF
CLARK; AND THE HONORABLE
DOUGLAS W. HERNDON, DISTRICT
JUDGE,
Respondents,
and
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RENATO BALANGUE, AN
INDIVIDUAL; ELIZABETH
BALANGUE, AN INDIVIDUAL; MK143
TRUST, AN IRREVOCABLE TRUST;
ZALATHIEL AGUILA, TRUSTEE FOR
MK143 TRUST; AND KEN
SCHNEIDER, INTERVENER,
Real Parties in Interest.
ORDER GRANTING IN PART AND DENYING IN PART PETITION
FOR WRIT OF MANDAMUS OR PROHIBITION
This is an original petition for a writ of mandamus or
prohibition challenging a district court's exercise of jurisdiction in a real
property matter.
FACTS
In February 1998, real parties in interest Renato Balangue
and Elizabeth Balangue signed an agreement with petitioner William
Percival (William) and Ramon Barrientos (Ramon) for part ownership in
American Gypsum, LLC (AGL) in California. The Balangues' investment
money purchased 22 California mining claims for AGL. Later, William
and Ramon also secured funds from real party in interest MK143 Trust to
test the purity of the reserves.
In 2002, AGL converted from a California corporation to a
Nevada corporation. In 2011, acting as managing member of AGL,
William transferred the 22 mining claims to petitioners the Office of the
Presiding Regents Christian Agricultural Apostolic Congregation; the
Office of the Presiding Regents of the Prosperity Fellowship, and His
Successors; and the Office of the Presiding Almoner of the House of
Percival, and His Successors. Real parties in interest subsequently
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discovered the change in AGL's incorporation, the transfer of the mining
claims, and alleged mishandling of AGL investment funds.
In September 2012, real parties in interest filed a complaint in
Nevada to quiet title to the mining claims, among other causes of action.'
By September 2013, only petitioner Phillip Percival 2 had responded to the
complaint. Thus, the district court entered a default judgment in favor of
real parties in interest, ruling that William and the various entities were
jointly and severally liable for $1,628,055.45, and divesting them of the
mining claims. Petitioners then filed a motion to set aside the default
judgment as to the defaulting defendants, and a motion to dismiss as to
Phillip, which the district court denied. Petitioners later filed a motion for
relief from judgment pursuant to NRCP 60, which the district court also
denied. Petitioners have now filed the instant writ petition.
DISCUSSION
Petitioners request that this court grant writ relief ordering
the district court to set aside its order divesting petitioners of real
property located in California.
"A writ of mandamus is available to compel the performance of
an act that the law requires . . . or to control an arbitrary or capricious
exercise of discretion." Int'l Game Tech., Inc. v. Second Judicial Dist.
Court, 124 Nev. 193, 197, 179 P.3d 556, 558 (2008). A writ of prohibition
may be warranted when a district court acts without or in excess of its
iBefore the complaint was filed in Nevada, Ramon filed a complaint
in California regarding the same mining claims.
2 Phillipwas sued individually and in his various capacities
governing the named entities.
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jurisdiction. Club Vista Fin. Servs., LLC v. Eighth Judicial Dist. Court,
128 Nev. 224, 228, 276 P.3d 246, 249 (2012). Where there is no plain,
speedy, and adequate remedy in the ordinary course of law, this court may
grant such extraordinary relief. Smith v. Eighth Judicial Dist. Court, 107
Nev. 674, 677, 818 P.2d 849, 851 (1991). Additionally, when reviewing the
district court's exercise of jurisdiction, we review the legal issues de novo.
Aspen Fin. Services, Inc. v. Eighth Judicial Dist. Court, 129 Nev., Adv. Op.
93, 313 P.3d 875, 878 (2013).
We agree with petitioners that the district court acted in
excess of its jurisdiction. "[C]ourts of one State are completely without
jurisdiction directly to affect title to land in other States." Durfee v. Duke,
375 U.S. 106, 115 (1963). In Buaas v. Buaas, we confirmed that a "Nevada
court could not render a judgment in rem passing directly upon the title to
California realty." 62 Nev. 232, 236, 147 P.2d 495, 496 (1944) (emphasis
added). When the district court here purported to divest the defaulting
defendants of all interest in the 22 mining claims, it attempted to directly,
rather than indirectly, pass title to California property in contradiction to
stated law. Thus, we grant the writ petition as to this issue.
However, petitioners also request that this court grant writ
relief directing the district court to dismiss all pending proceedings. After
review of the record and applicable law, we •conclude that our
extraordinary relief is not warranted as to this issue. See NRS 34.160
(providing that a writ of mandamus is available to compel the performance
of an act that the law requires).
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Accordingly, we ORDER the petition GRANTED IN PART
AND DENIED IN PART AND DIRECT THE CLERK OF THIS COURT
TO ISSUE A WRIT OF PROHIBITION instructing the district court to
vacate its order passing title to the California property.
Gibbons
cc: Hon. Douglas W. Herndon, District Judge
Homeowner Relief Lawyers LLC
Ken Schneider
Law Offices of Marilee A. Ryan, LLC
Eighth District Court Clerk
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