Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Transfirst Group, Inc. v. Magliarditi

United States District Court, D. Nevada

August 29, 2017

TRANSFIRST GROUP, INC., Plaintiffs,
v.
DOMINIC J. MAGLIARDITI, Defendants.

          ORDER CERTIFIYING QUESTIONS TO THE SUPREME COURT OF NEVADA

          ANDREW P. GORDON UNITED STATES DISTRICT JUDGE.

         Pursuant to Rule 5 of the Nevada Rules of Appellate Procedure, this Court seeks guidance from and respectfully certifies to the Supreme Court of Nevada the following questions of law that may be determinative of matters before this Court and as to which there is no clearly controlling precedent in the decisions of the Supreme Court or Court of Appeals of Nevada:

1. May a judgment creditor bring a claim for alter ego to make a third party liable on the judgment or is alter ego a remedy only?
2. Does alter ego apply to limited liability companies?
3. Does alter ego apply to partnerships?
4. Does alter ego apply to trusts?
5. Does alter ego apply to spendthrift trusts?
6. Is an alter ego of a judgment debtor a "debtor" under Nevada's Uniform Fraudulent Transfer Act?
7. Is a transfer between alter egos or between the judgment debtor and an alter ego a "transfer" under Nevada's Uniform Fraudulent Transfer Act?

         I. BACKGROUND

         Plaintiffs TransFirst Group, Inc.; TransFirst Third Party Sales, LLC; and Payment Resources International, LLC ("TransFirst") obtained a judgment in the United States District Court for the Northern District of Texas against defendant Dominic J. Magliarditi based on fraud claims for which approximately $4 million remains unpaid.[1] ECF No. 7-1 at 2, 5, 11; Pis.' Hrg. Exs. 1-3; ECF No. 105 at 17. TransFirst has been attempting to collect ever since, with little success. Following post-judgment collection efforts, TransFirst initiated this lawsuit in Texas against Dominic, his wife (Francine Magliarditi), and various entities associated with the Magliarditis, alleging that the entities are Dominic's alter egos and thus are liable on the judgment. TransFirst also asserts fraudulent transfer claims, alleging that transfers to and between the entities and to Francine were fraudulent.

         While this case was pending in Texas, TransFirst moved for a temporary restraining order ("TRO") precluding the defendants from transferring, concealing, or otherwise disposing of their assets. ECF No. 6. The Texas court granted that motion as to some defendants but denied it without prejudice as to others because the court concluded it lacked jurisdiction over those defendants. ECF Nos. 6, 33. In ruling on the TRO motion, the court stated Dominic had engaged in "postjudgment discovery abuses, as evidenced by Magistrate Judge Paul Stickney's order sanctioning him . . . ." ECF No. 33 at 9. The Texas court then transferred the action to this court. ECF Nos. 36, 37.

         After the case was transferred, I reinstated the TRO, expanded it to apply to all the defendants, and set a hearing on the motion for preliminary injunction. ECF Nos. 53, 54. In the meantime, TransFirst filed a second amended complaint, again asserting claims for alter ego, fraudulent transfer, and unjust enrichment. ECF No. 75. The parties submitted their briefs and voluminous supporting exhibits in relation to the motion for a preliminary injunction. I held a hearing on May 19, 2017, at which no live witnesses testified.

         I granted TransFirst's motion for a preliminary injunction. ECF No. 109. In doing so, I made several predictions about Nevada law which have become the subject of a motion for reconsideration. In light of the Supreme Court of Nevada's recent decision in Klabacka v. Nelson,394 P.3d 940 (Nev. 2017) (en banc), I granted reconsideration ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.