United States District Court, D. Nevada
ROBERT C. JONES, District Judge.
This case arises out of a dispute over the ownership and seizure of a fifth-wheel trailer and the sale of personal property contained therein. Four motions are currently pending before the Court: (1) Defendant William Bauer's motion for security in the amount of $1000 for costs, (ECF No. 54), which is rendered moot by Plaintiffs' certificate of a $1000 deposit, filed on February 5, 2014, (ECF No. 56); (2) Defendant Foremost Insurance Company's motion for summary judgment, (ECF No. 59), which the Court now denies for the reasons stated herein; (3) Plaintiffs' unopposed motion for an enlargement of time to oppose Foremost's motion for summary judgment, (ECF No. 65), which the Court now grants; and (4) Plaintiffs' Rule 56(d) countermotion for a continuance and additional discovery, (ECF No. 66), which the Court now denies as moot.
I. FACTS AND PROCEDURAL HISTORY
The following facts are alleged in the third amended complaint ("TAC"). Plaintiff Stephen Warren ("Stephen") and his sixteen-year-old daughter, Plaintiff Tarynn Warren ("Tarynn") (Collectively, "Plaintiffs"), are California residents. (TAC ¶¶ 1-2, June 10, 2014, ECF No. 85). In "October 2011, " while in Elko County, Nevada, Stephen entered into a verbal agreement with Defendant Austin Lindsey ("Lindsey"), a Nevada resident, to "rent, and later purchase, " Lindsey's fifth-wheel trailer (the "Trailer"). ( Id. ¶¶ 3, 8).
Pursuant to this verbal agreement, Plaintiffs, with Lindsey's knowledge, took possession of the trailer, filled it with their personal property, and began using it as a residence in Carlin, Nevada. ( Id. ¶ 9). Plaintiffs paid Lindsey monthly payments of $400 for ten months. ( Id. ¶ 10). On June 13, 2011, again with Lindsey's knowledge, Plaintiffs "took the trailer to California for the purpose of attempting to secure financing to complete the payment of the purchase price as Lindsey was demanding." ( Id. ¶ 11). Stephen was current on his payments to Lindsey at the time of the trip. ( Id. ). However, on June 15, 2011, Lindsey "falsely reported to the Sheriff of Elko County that the trailer had been stolen and that [Stephen] had stolen it." ( Id. ¶ 12). "In his report to the Carlin police department,  Lindsey falsely stated that he had loaned' [the Trailer] to a friend.'" ( Id. ). Lindsey did not disclose his verbal agreement with Stephen or that he knew that Stephen had taken the trailer to California in an attempt to arrange the required financing. ( Id. ).
As a result of the false report that Lindsey filed with the Elko County Sheriff, Stephen was arrested by officers from the Monterey County Sheriff's Department ("MCSD") in California on June 23, 2011. ( Id. ¶ 13). After explaining the circumstances, Stephen was released on the same day. ( Id. ).
At a time presently unknown to Plaintiffs, Defendant William Bauer ("Bauer"), the Chief of Police for the city of Carlin, Nevada, placed a "hold" on the Trailer through NCIC, a national crime reporting and registration network. ( Id. ). As a result of Bauer's hold, the MCSD seized the Trailer without a warrant. ( Id. ). MCSD held the Trailer, and "virtually all of [P]laintiffs' personal property" from June 23 to July 21, 2011. ( Id. ¶¶ 13.4, 19). During that time, Lindsey "falsely submitted a claim for theft of the [Trailer], " to his insurer, Defendant Foremost Insurance Company ("Foremost"), a Michigan corporation. ( Id. ¶¶ 5, 18). Foremost paid Lindsey for the "fabricated loss." ( Id. ¶ 18). On July 3, 2011, based on a theory of subrogation, Bauer instructed MCSD to release the Trailer to Foremost. ( Id. ¶ 16, 18.2). Foremost took possession of the Trailer on July 21, 2011. ( Id. ¶ 19). Foremost later sold the Trailer and all of its contents to unknown persons for an unknown price. ( Id. ¶ 20).
On January 19, 2012, at the request of the Elko County District Attorney's office, Stephen was arrested in California and charged with the theft of the Trailer. ( Id. ¶ 15). Stephen waived extradition but was not arraigned in Elko until "February 6, 2011, " at which time he posted bail and was released. ( Id. ). On November 26, 2012, Elko County authorities dismissed the charge after "verif[ying] that Stephen... did, in fact, have a verbal agreement with Lindsey." ( Id. ¶ 17).
On June 21, 2013, Plaintiffs initiated this action, (Compl., ECF No. 2), and now assert the following claims: (1) malicious prosecution (against Lindsey); (2) intentional and negligent infliction of emotional distress (against Lindsey); (3) conversion (against Lindsey and Foremost); (4) abuse of process (against Lindsey); (5) defamation (against Lindsey); (6) breach of contract (presumably against Lindsey); (7) violations of the Fourth and Fourteenth Amendments to the United States Constitution made actionable under 42 U.S.C. § 1983 and violations of NRS 179.105 (against Bauer); and (8) municipal liability under 42 U.S.C. § 1983 (against the City of Carlin). (TAC, ECF No. 85, at 6-13).
On February 20, 2014, Foremost filed the pending motion for summary judgment, arguing that Plaintiffs' conversion claim against it fails as a matter of law. ( See Mot. Summ. J., ECF No. 59). Plaintiffs opposed the motion and countermoved for additional time to conduct discovery pursuant to Rule 56(d). (ECF No. 66). The Court now considers the pending motions.
II. LEGAL STANDARD
In reviewing a motion for summary judgment, the court construes the evidence in the light most favorable to the nonmoving party. Bagdadi v. Nazar, 84 F.3d 1194, 1197 (9th Cir. 1996). Pursuant to Federal Rule of Civil Procedure 56, a court will grant summary judgment "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). Material facts are "facts that might affect the outcome of the suit under the governing law." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A material fact is "genuine" if the evidence is such that a reasonable jury could return a verdict for the nonmoving party. Id.
The moving party bears the initial burden of identifying the portions of the pleadings and evidence that the party believes to demonstrate the absence of any genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). A party asserting that a fact cannot be or is genuinely disputed must support the assertion by "citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials" or "showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact." Fed.R.Civ.P. 56(c)(1)(A)-(B). Once the moving party has properly supported the motion, the burden shifts to the nonmoving party to come forward with specific facts showing that a genuine issue for trial exists. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986). "The mere existence of a scintilla of evidence in support of the plaintiff's position will be insufficient; there must be evidence on which the jury could reasonably find for the plaintiff." Anderson, 477 U.S. at 252. The nonmoving party cannot ...