United States District Court, D. Nevada
BOARD OF TRUSTEES OF THE SOUTHERN NEVADA JOINT MANAGEMENT AND CULINARY AND BARTENDERS TRAINING FUND, Plaintiffs,
CHRISTOPHER FAVA, et al., Defendants.
before the court is plaintiff Board of Trustees of the
Southern Nevada Joint Management and Culinary and Bartenders
Training Fund d/b/a Culinary Academy of Las Vegas'
(“CALV”) motion for reconsideration. (ECF Nos.
72, 74-1). Defendant/counter claimant Jaime Monardes filed a
response (ECF No. 77), to which CALV replied (ECF No. 81).
before the court is CALV's motion for leave to amend.
(ECF Nos. 73, 75). Monardes filed a response (ECF No. 78), to
which CALV replied (ECF No. 82).
case involves two former CALV employees who allegedly
breached their fiduciary duties when they negotiated and
executed a contract with Eclipse Theater, LLC (“Eclispe
a Nevada nonprofit employee benefit trust fund and is a
provider of training for entry-level and incumbent workers in
the Las Vegas hospitality industry. (ECF No. 1). In January
2012, CALV hired Christopher Fava as vice president of food
& beverage and chief operating officer, and later as its
chief executive officer. Id. Fava's position
involved managing CALV's assets and expenditures.
Id. In April 2015, CALV hired Monardes as vice
president of finance and accounting. Id.
Monardes' work responsibilities required him to oversee
program operations, which also included managing CALV's
assets and expenditures. Id.
December of 2015, Fava notified the CALV trustees of a new
training and investment opportunity with the Eclipse Theater
entertainment complex. Id. Fava represented that the
opportunity would generate $10 million in income over five
years and create over 100 employment opportunities for CALV
students. See Id. Based on Fava's
representations, the CALV trustees delegated authority to
Fava and Monardes to pursue the Eclipse Theater opportunity.
January 19, 2016, Fava and Monardes entered into a concession
agreement with Eclipse Theater (“Eclipse
agreement”) on behalf of CALV. Id. CALV's
capital investment, as represented by Fava, was not to exceed
$500, 000. Id.
12, 2016, Fava and Monardes, acting on behalf of CALV,
amended the Eclipse agreement without notifying the CALV
trustees. Id. The amended agreement required CALV to
staff positions outside of the organization's training
scope and extended CALV's staffing responsibilities to
Eclipse Theater's in-house restaurant, 21 Greens Inc.
(“21 Greens”). Id. CALV also promised to
purchase up to $250, 000 in supplies and equipment for 21
Greens in exchange for a guarantee that Eclipse Theater would
repay CALV within the first year of operation. Id.
The agreement further stated that CALV would receive either
two percent of gross ticket revenues or $100, 000 per year,
whichever is greater. Id.
the next few months, Fava and Monardes allegedly engaged in
further misdeeds such as spending over $20, 000 for food,
alcohol, entertainment, and travel. Id. In October
2016, Fava and Monardes amended the Eclipse agreement a
second time without obtaining the CALV trustees' consent.
Id. Eventually, CALV discovered Monardes'
misconduct and placed him under suspension. (ECF Nos. 1, 49).
about November 18, 2016, Monardes filed a formal complaint
with the Equal Employment Opportunity Commission
(“EEOC”), alleging employment discrimination and
various related causes of action. (ECF No. 49). Thereafter,
CALV terminated Monardes. (ECF Nos. 1, 49).
December 2016 through January 2017, CALV and Monardes entered
settlement discussions concerning his termination and EEOC
complaint. (ECF No. 51-1). On January 23, 2017, Monardes
executed a separation agreement (“separation
agreement”) wherein he released, settled, acquitted,
and waived all claims against CALV in exchange for $11,
January 9, 2018, CALV filed the underlying complaint
asserting fourteen causes of action against several
individual and entity defendants, including Monardes. (ECF
No. 1). On May 3, 2018, Monardes filed an answer and
counterclaim, raising three counterclaims against CALV: (1)
fraud in the inducement, (2) breach of the implied covenant
of good faith and fair dealing, and (3) declaratory relief.
(ECF No. 49).
24, 2018, CALV filed a motion to dismiss Monardes'
counterclaims. (ECF No. 51). On December 12, 2018, the court
denied CALV's motion, holding that the court cannot
determine as a matter of law whether the separation agreement
precluded Monardes' counterclaims because Monardes
plausibly pleaded a claim for fraud in the inducement. (ECF
No. 71). Now, CALV moves for reconsideration, raising a new
argument that it failed to raise in its initial motion to
dismiss. (ECF No. 74-1). CALV also moves in the alternative
for leave to amend the complaint. (ECF No. 75).