SlideShare a Scribd company logo
1 of 20
(Page 1 of 19)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Vegas. Ne• 89109
0RIGI AIL
BREF
THOMAS F. KUMMER
Nevada Bar No. 01200
SHERI ANN FORBES
Nevada Bar No. 07337
KUMMER KAEMPFER BONNER & RENSHAW
Seventh Floor
3800 Howard Hughes Parkway
Las Vegas, Nevada 89109
Telephone: (702) 792-7000
Attorneys for Plaintiff
S&B Associates LLC
dba Commission Express Las Vegas
DISTRICT COURT
CLARK COUNTY, NEVADA
S&B ASSOCIATES, LLC, a limited liability
company, d/b/a COMMISSION EXPRESS
LAS VEGAS,
Plaintiff,
VS.
HELEN LOW, an individual; LIBERTY
REALTY, a Nevada corporation; DOES I
through X, inclusive; and ROE
CORPORATIONS I through X, inclusive,
Defendant.
Case No.
Dept. No.
A466468
X
APPELLANT'S OPENING BRIEF
92552_3 g05.2
(Page 2 of 19)
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
I•at•y
TABLE OF CONTENTS
MEMORANDUM OF POINTS AND AUTHORITIES
I. Statement of the Issue Presented for Review 1
II. Statement of the Case 1
A. Summary
B. Factual Background
III. Argument 4
A. Standard of Review 4
B. Liberty Realty's Motion for Summary Judgment Should Have Been Denied
by the Justice Court Below 4
1. Article 9 Of The UCC Controls In This Case 4
2. The Subject Transaction Between Helen Low and Commission Express Is
Clearly An Assignment Of An Account Receivable 5
3. It Is Legal Under Nevada Revised Statutes For Liberty Realty To Pay
Commission Express The Account Receivable Pursuant To The Account
Receivable Sale And Assignment Agreement 6
4. The Assignment Does Not Increase The Burden Or Risk Of Liberty
Realty, And Does not Violate NRS 645.280 8
a. Liberty Realty's obligations were not enlarged by the Assignment 8
b. The Assignment does not violate NRS 645.280 9
5. Commission Express's Claims For Breach Of The Implied Covenant Of
Good Faith And Fair Dealing, Third Party Breach Of Contract And Unjust
Enrichment Survive Defendant's Summary Judgment Motion 10
6. Bell Acted As Liberty Realty's Agent 12
7. The Assignment Does Not Violate NRS Chapter 104 12
IV. Conclusion 14
ATTORNEY'S CERTIFICATE OF COMPLIANCE 14
92552_3 11705.2 Pagei
(Page 3 of 19)
1
2
3
4
5
6
7
8
9
10
I1
12
TABLE OF CASES, STATUTES AND OTHER AUTHORITIES CITED
Cases
Alsenz v. Clark County School District, 109 Nev. 1062, 1065 (1993) 8
Bish v. Guaranty Nat'l Ins. Co., 109 Nev. 133, 848 P.2d 1057 (1993) 4
Boland v. Nevada Rock & Sand Co., 111 Nev. 608, 894 P.2d 988 (1995) 4
Cimini v. Nevada Ins. Guar. Ass 'n, 112 Nev. 442, 915 P.2d 279 (1996) 4
Dermody v. City ofReno, 113 Nev. 207, 931 P.2d1354 (1997) 4
Dickenson v. State Dept. of Wildlife, 110 Nev. 934, 877 P.2d 1059 (1994) 6
Dr. Miles Medical Co. v. John D. Park & Sons, Co., 220 U.S. 373, 383 (1911) 13
Great American lns. Co. v. General Builders, lnc., 113 Nev. 346, 934 P.2d 257 (1997) 13
Leaseparmers Corp. v. Robert T. Brooks Trust, 113 Nev. 747, 942 P.2d 182 (1997) 12
Lorenz v. Beltio, Ltd., 114 Nev. 795, 963 P.2d 488 1998) 6
Musserv. Bankof America, 114 Nev. 945, 947, 964 P.2d 51, 52 (1998) 6
Oliver v. Barrick Goldstrike Mines, 111 Nev. 1338, 905 P.2d 168 (1995) 4
Parman v. Petricciani, 70 Nev. 427, 272 P.2d 492 (1954) 12
Pressler v. City of Reno, 50 P.3d 1096 (2002) 4
Statutes
NRS 104. 9101 4
NRS I04.9102(b) 5
NRS 104.9102(c) 5
NRS 645.280(1) 6, 7
NRS chapter 104 1, 11, 12, 14
Other Cited Authorities
97-28 Op. Art 'y Gen. 105, 108 (1997) 7
Black's Law Dictionary 410 (Abridged 6 'h ed. 1991) 6
•_z 1,ros.2 Page ii
(Page 4 of 19)
2
3
4
5
6
7
8
9
I0
11
12
13
14
15
16
17
18
19
20
21
22
23
24
3800 Howl'el Hugh•s
I.•s V•as. N•v•:• 89509
MEMORANDUM OF POINTS AND AUTHORITIES
I. Statement of the Issue Presented for Review
Did the justice court err by granting Defendant/Respondent Liberty Realty's Motion for
Summary Judgment against Plaintiff/Appellant Commission Express on all its claims for relief?.
II, Statement of the Case
A. Summary
Helen Low ("Low"), a licensed real estate agent, earned a commission from Liberty
Realty in connection with Low's representation of the purchasers of real property located in Las
Vegas, Nevada. Low validly sold at a discount to S&B Associates, LLC, dba Commission
Express Las Vegas ("Commission Express") all her rights, title and interest in the commission
she earned from Liberty Realty. Low's assignment of the proceeds of her commission to
Commission Express was made pursuant to Article 9 of the Uniform Commercial Code
("UCC"), codified in Nevada as NRS chapter 104. Commission Express perfected its rights, title
and interest in Low's commission by filing pursuant to Article of the UCC a financing
statement with the Nevada Secretary of State. Liberty Realty executed a Notice of Assignment
putting it on notice that Low had assigned the proceeds of her commission to Commission
Express. Liberty Realty failed to make such payment to Commission Express in direct violation
of the provisions of NRS chapter 104. Liberty Realty was not entitled to summary judgment
against Commission Express and the justice court erred below in granting summary judgment in
Liberty Realty's favor, and Commission Express was entitled to a grant of summary judgment on
its countermotion for summary judgment against Liberty Realty.
B. Factual Background
Defendant Helen Low ("Low") is a licensed Nevada real estate agent, working as an
independent contractor for Liberty Realty. See Defendant's Motion for Summary Judgment at 4.
92552_3 11705.2 Page of14
(Page 5 of 19)
Low represented Randall and Donna Whitt who, on March 3, 2002, made an offer to buy the
property at 6369 Lookout Mountain Drive, Las Vegas, Nevada. /d. Under the terms of the offer
and upon settlement of the real estate transaction, Low was entitled to a real estate commission
of $7,180.00 from Defendant Liberty Realty for the services she performed (the "Account
Receivable"). ld.
On March 3, 2002, and then again on March 21, 2002, Low sold, assigned and conveyed
her rights, title and interest to the Account Receivable to Plaintiff Commission Express at a
discount. See Exhibits 1 and 2 of Plaintiff's Opposition And Countermotion for Summary
Judgment. The March 3, 2002 sale and assignment, and the March 21, 2002 sale and
assignment, together assigned to Commission Express all of Low's rights in the total amount of
the Account Receivable. ld.
On March 6, 2002, Low and Commission Express executed a Master Repurchase And
Security Agreement. See Exhibit 7 of Plaintiff's Opposition and Countermotion for Summary
Judgment. On March 11, 2002, Commission Express filed a UCC Financing Statement, pursuant
to UCC-1, with the Nevada Secretary of State. See Exhibit 8 of Plaintiff's Opposition and
Countermotion for Summary Judgment.
On March 6, 2002, Low and Richard Bell ("Bell"), broker for Liberty Bell, executed a
Notice Of Assignment that informed Liberty Realty of Low's sale and assignment to
Commission Express of Low's rights and interest in the Account Receivable. See Exhibit 4 of
Plaintiff's Opposition and Countermotion for Summary Judgment; Reporter's Transcript ("RT")
at 6-7. Liberty Realty admits in its Motion that Bell is a broker employed by Liberty Bell. See
Defendant's Motion for Summary Judgment at 5. The Notice Of Assignment specifically
•rovided,
Payments due or to become due to [Low] under the above
referenced contract will be made to [Liberty Realty] by the
•2552_3 117052
Page 2 of 14
(Page 6 of 19)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
KUI•MEII ItA•PFI•R
Se•n• Fl•r
Las Vegas. Nevada 89109
Settlement Agent, and will then be directly paid ONLY to
Commission Express by [Liberty Realty] after deducting any fees
owed to [Liberty Realty] by [Low]. Should the amount paid to
[Commission Express] by [Liberty Realty] be less than the amount
in [paragraph] 1 abo•e, [Low] agrees to immediately pay the
difference to [Commission Express] with Certified or Cashier's
check.
See Exhibit 3 at ¶ 3 of Plaintiff's Opposition and Cotmtermotion for Summary Judgment.
Additionally, the Notice of Assignment provided, "Upon written notice from [Commission
Express] that [Low] is in Default, [Low] authorizes and directs [Liberty Realty] to pay
[Commission Express], after deducting fees as in 4 above, all monies due and payable to [Low]
to fulfill such balance as is due [Commission Express]." ld. at ¶ 6. The Notice of Assignment
released Liberty Realty from liability only if the underlying real estate transaction did not close.
Id. at ¶ 5.
On March 6, 2002, a Reminder of Commission Assignment was sent to Liberty Realty,
and a Reminder of Acknowledgement was sent to the settlement agent. See respectively,
Exhibits 4 and 5 of Plaintiff's Opposition and Countermotion for Summary Judgment. On May
6, 2002, title in 6369 Lookout Mountain Drive, Las Vegas, Nevada, passed to Randall and
Donna Whitt. See Exhibit 6 of Plaintiff's Opposition and Countermotion for Summary
Judgment. In direct contravention of the Notice of Assignment, Liberty Realty paid the proceeds
of the Account Receivable directly to Low. See Defendant's Motion for Summary Judgment at
Liberty Realty has failed and continues to fail to pay the proceeds of the Account
Receivable to Commission Express. See respectively, Exhibits 9 and 10 of Plaintiff's Opposition
and Countermotion for Summary Judgment. On May 0, 2002, a Demand For Payment was sent
to Liberty Realty, and a Notice of Default was sent to Low. ld. On August 9, 2002, Commission
Express filed suit in justice court. See Plaintiff's Complaint. Commission Express brings this
92552_3 $705.2 Page 3 of 14
(Page 7 of 19)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
KUM•.R K•EMPFER
I•mlNt•R & REN•AW
• H•rd Hu•he•
P•kw'a•
appeal before this Court from the justice's court's error in granting Liberty Realty's Motion For
Summary Judgment and in denying Commission Express's Countermotion For Summary
Judgment.
III. Argument
A. Standard of Review
The Nevada Supreme Court has stated that an appeal from the grant of a motion for
summary judgment is reviewed de novo without deference to the decision of the court below.
Pressler v. City of Reno, 50 P.3d 1096 (2002); Cimini v. Nevada lns. Guar. Ass 'n, 112 Nev. 442,
915 P.2d 279 (1996); 0liver v. Barrick Goldstrike Mines, 111 Nev. 1338, 905 P.2d 168 (1995).
To prevail on a motion for summary judgment, the moving party must show that there are no
genuine issues as to any material fact with regards to the summary judgment issue, and that the
moving party is entitled to judgment as a matter of law on the summary judgment issue. NRCP
56(c). A party may, at any time, move with or without supporting affidavits, for summary
judgment in its favor as to all or any part of the claims made against it. NRCP 56(b). Summary
judgment is appropriate when there are no genuine issues of any material fact with regards to the
summary judgment issue and the moving party is entitled to judgment as a matter of law.
Dermody v. City of Reno, 113 Nev. 207, 931 P.2d 1354 (1997); Bish v. Guaranty Nat7 Ins. Co.,
109 Nev. 133, 848 P.2d 1057 (1993). In order to prevail, the nonmoving party must show
specific facts demonstrating the existence of a genuine issue for trial. Boland v. Nevada Rock &
SandCo., 111 Nev. 608, 894 P.2d 988 (1995).
BQ Liberty Realty's Motion for Summary Judgment Should Have Been Denied
by the Justice Court Below.
1. Article 9 Of The UCC Controls In This Case.
The UCC is codified in Nevada as chapter 104 of the Nevada Revised Statutes. NRS
92552_3 117052 Page 4 of 14
(Page 8 of 19)
104.9101 et seq. codifies Article 9 of the UCC, Secured Transactions. NRS 104.9109 provides
that the protections of Article 9 apply to "sale of accounts, chattel paper, payment intangibles or
promissory notes." NRS 104.9102(b) defines "account" as "a fight to payment of a monetary
obligation, whether or not earned by performance." Additionally, NRS 104.9102(c) defines
"account debtor" as "a person obligated on an account, chattel paper or general intangible."
Clearly, Low's sale of her Account Receivable to Commission Express is specifically covered by
NRS 104.9109. Because Low had a right to a $7,180.00 payment and Liberty Realty was
obligated to make that payment to Low, Low's Account Receivable is an "account" as defined
by NRS 104.9102(b), and Liberty Realty is an "account debtor" as defined by NRS 104.9102(c).
2. The Subject Transaction Between Helen Low And Commission
Express Is Clearly An Assignment Of An Account Receivable.
Liberty Realty claimed below, "The subject transaction was, in truth, a loan, and not
factoring and did not involve the assignment of an 'account receivable.'" See Defendant's Reply
To Opposition To Motion For Summary Judgment And Opposition To Plaintiff's Countermotion
For Summary Judgment at 6. Liberty Realty makes this illogical assertion, unsupported by any
authority, despite the fact that every document signed by Defendant Helen Low ("Low") and
Liberty Realty clearly states that the subject transaction was an assignment and sale of an
account receivable (the "Assignment"). See Exhibits 1, 2, 3, 4 and 7 of Plaintiff's Opposition to
Defendant's Motion For Summary Judgment And Countermotion For Summary Judgment.
Moreover, the documents signed by Low affirmatively state that the parties acknowledge that the
Assignment is not a loan. Specifically, the Account Receivable Sale And Assignment
Agreement states, "Agent acknowledges that this Agreement is not a loan or a consumer
transaction, but the sale of a business account receivable at a discount for commercial
purposes." See Exhibits and 2 at ¶ 5 of Plaintiff's Opposition to Defendant's Motion For
Page 5 of 14
(Page 9 of 19)
2
3
4
5
6
7
8
9
I0
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1.15 V•li. Nlvi(Ii 8•11•
Summary Judgment And Countermotion For Summary Judgment (emphasis in original). The
Master Repurchase and Security Agreement contains identical language. See Exhibit 7 at ¶ 10 of
Plaintiff's Opposition to Defendant's Motion For Summary Judgment And Countermotion For
Summary Judgment.
Interpretation of a contract is a question of law. Musser v. Bank of America, 114 Nev.
945, 947, 964 P.2d 51, 52 (1998); Lorenz v. Beltio, Ltd., 114 Nev. 795, 963 P.2d 488 1998);
Dickenson v. State Dept. of Wildlife, I0 Nev. 934, 877 P.2d 1059 (1994). Liberty Realty admits
that both Low and Richard Bell of Liberty Realty signed the documents that effectuated the
Assignment. The undisputed evidence clearly shows that the Assignment is in no way a loan,
but is in fact a sale of an account receivable at a discount. In other words, the Assignment is a
factor. See Black's Law Dictionary 410 (Abridged 6 th ed. 1991).
3. It Is Legal Under Nevada Revised Statutes For Liberty Realty To Pay
Commission Express The Account Receivable Pursuant To The
Account Receivable Sale And Assignment Agreement.
Liberty Realty misconstrued Nevada law by claiming in its Motion for Summary
Judgment that NRS 645.280(1) makes it illegal for Liberty Realty to pay the proceeds of the
Account Receivable directly to Commission Express. See Defendant's Motion for Summary
Judgment at 12-I 3. In support of its claim, Liberty Realty quotes only a portion of NRS
645.280(1), leaving out language that is important to interpretation of the statute, ld. NRS
645.280(1) provides in its entirety,
It is unlawful for any licensed real estate broker, or broker-
salesman or salesman to offer, promise, allow, give or pay, directly
or indirectly, any part or share of his commission, compensation or
finder's fee arising or accruing from any real estate transaction to
any person who is not a licensed real estate broker, broker-
salesman or salesman, in consideration of services performed or
to be performed by the unlicensed person. A licensed real estate
broker may pay a commission to a licensed broker of another state.
92552_3 117O5.2
Page 6 of 14
(Page 10 of 19)
2
3
4
5
6
7
8
9
10
11
12
13
14
I5
16
17
18
19
20
21
22
23
24
•UMMER KAEMPFER
BONNER & RENSHAW
Sevenl• Floor
3600 Howard Hughes
I.as V•Oss. Nev•d• 891•EI
NRS 645.280(1) (emphasis added). NRS 645.280 is unmistakably an attempt to prevent brokers
from paying any portion of a commission to anyone other than a licensed real estate agent fo._Ar
procuring or brokering real estate sales. See 97-28 Op. Att'y Genl05, 108 (1997) ("Only when
an unlicensed person does an act that is defined as one that only a broker or salesperson may do
is there a prohibition in Nevada law."). The statute does not prevent a broker fi:om forwarding a
real estate agent's commission directly to a third party pursuant to a valid assignment. Because
the Account Receivable Sale and Assignment Agreement does not contemplate that Commission
Express perform any service with regard to the real estate transaetion, NRS 645.280 does not
prohibit Liberty Realty from paying the proceeds of an Account Receivable directly to
Commission Express.
In the instant case, Liberty Realty would not be paying the proceeds of the Account
Receivable to Commission Express "in consideration of services performed or to be performed"
by Commission Express. Liberty Realty would simply be forwarding the proceeds of Low's
Account Receivable to Commission Express pursuant to the validly executed Account
Receivable Sale And Assignment Agreement between Low and Commission Express and as
contemplated by UCC Article 9.
The Nevada Supreme Court has repeatedly stated that "statutory interpretation should
avoid absurd or unreasonable results." Alsenz v. Clark County School District, 109 Nev. 1062,
1065 (1993). Liberty Realty's interpretation is an absurd one, and would prevent a broker from
paying any part of his commission from the sale of real estate to anyone who isn't a real estate
agent; ostensibly, a broker would be prevented from purchasing groceries, paying employees or
paying rent with monies received as a commission from a real estate transaction. This Court
should reject Liberty Realty's absurd misreading of NRS 645.280.
Moreover, NRS 104.9406(6) provides that "a rule of law, statute, or regulation, that
92552_3 11705.2
Page 7 of 14
(Page 11 of 19)
2
3
4
5
6
7
8
9
I0
11
I2
13
14
15
16
17
18
19
20
21
22
23
24
KUMMER
BOI•IER & REhFJHAW
•wmn• •
• H• H•
V•as, Nevada 89109
prohibits, restricts, or requires the consent of a government, governmental body or official, or
account debtor to the assignment or transfer of, or creation of a security interest in, an account or
chattel paper is ineffective to the extent that the rule of law, statute or regulation: (a) Prohibits,
restricts, or requires the consent of the government, governmental body or official, or account
debtor to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of
a security interest in, the account or chattel paper." Therefore, even if NRS 645.280 could be
construed to prohibit Liberty Realty from paying the proceeds of the Account Receivable
directly to Commission Express, NRS 104.9406(6) renders such an application ineffective
where, as here, a security interest has been established under Article 9 of the Uniform
Commercial Code ("UCC").
4. The Assignment Does Not Increase The Burden Or Risk Of Liberty
Realty, And Does not Violate N]RS 645.280.
a. Liberty Realty's obligations were not enlarged by the Assignment.
Liberty Realty claimed below that the Assignment forced Liberty Realty to monitor and
track (1) the changing status of the real estate transaction, (2) the status of the commission
agreement between Low and her clients, and (3) the status of the amounts owed between
Commission Express and Low. See Defendant's Reply To Opposition To Motion For Summary
Judgment And Opposition To Plaintiff's Countermotion For Summary Judgment at 7. Liberty
Realty's contentions are, once again, belied by the evidence.
The only obligation placed on Liberty Realty by the Assignment is to pay the proceeds of
the Account Receivable directly to Commission Express instead of to Low. The Notice of
Assignment clearly stated, "Payments due or to become due to [Low] under the [Assignment]
will be made to [Liberty Realty] by the Settlement Agent, and will then be directly paid ONLY
to Commission Express by [Liberty Realty] after deducting any fees owed to [Liberty Realty]
by [Low]." See Exhibit 3 at ¶ 4 of Plaintiff's Opposition to Defendant's Motion for Summary
•2•:• .7o•.2 Page 8 of 14
(Page 12 of 19)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
KUMMER KAEMPFER
BONNER & REN:•HAW
Seventh
3•00 HO•,•d
Vegas. Nevada 89109
Judgment And Countermotion For Summary Judgment (emphasis in original). Whatever Liberty
Realty was required to do in conjunction with paying Low her commission was not changed or
enlarged by requiring instead that Liberty Realty pay the proceeds of the Account Receivable
directly to Commission Express in Low's stead. Moreover, the Notice of Assignment only
requires Liberty Realty to pay to Commission Express "[p]ayments due or to become due" to
Low. See id. Thus, there is no added risk placed on Liberty Realty by the Assignment.
Additionally, the Notice of Assignment clearly shows that both Low and Liberty Realty
agreed that "[u]pon written notice from [Commission Express] that [Low] is in Default, [Low]
authorizes and directs [Liberty Realty] to pay [Commission Express], after deducting fees as in
4. above, all monies due and payable to [Low] to fulfill such balance as is due [Commission
Express]." See Exhibit 3 of Plaintiff's Opposition To Defendant's Motion For Summary
Judgment And Countermotion For Summary Judgment. By the terms of the Notice of
Assignment, Liberty Realty is not required to "monitor" anything beyond what it would have
done had the Assignment not occurred. See Exhibit 3 of Plaintiff's Opposition to Defendant's
Motion for Summary Judgment And Countermotion For Summary Judgment.
b. The Assignment does not violate NRS 645.280.
Liberty Realty argued below that the Assignment violates NRS 645.280, and that to
honor the Notice of Assignment would cause Liberty Realty to "ignore the advice and dictates of
the Nevada Real Estate Division." See Defendant's Reply To Opposition To Motion For
Summary Judgment And Opposition To Plaintiff's Countermotion For Summary Judgment at 8.
First, there is no evidence that the Nevada Real Estate Division has ever dictated that an
agent cannot assign the proceeds of her commission to a third party. The Nevada Real Estate
Division letter that Liberty Realty provided in Exhibit A of Defendant's Motion For Summary
Judgment answers only the question of whether a commission may be paid directly to a loan
•2552._3 117•.2 Page 9 of I4
(Page 13 of 19)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
KUMMER KAEII• PFI:R
I•ON•ER & REN"HAW
Seven• Floor
381• H•ra
La•Vegas, Nev'• •1109
company. As discussed above, the Assigrmaent is no___!t a loan. Exhibit A of Defendant's Motion
For Summary Judgment is inapplicable to the instant case.
Next, as discussed in Plaintiff's Opposition To Defendant's Motion For Summary
Judgment Atzd Countermotion For Summary Judgment at 6-8, the Assignment does not violate
NtLS 645.280. The title of NRS 645.280 reads, "Association with or compensation of
unlicensed broker, broker-salesman or salesman unlawful; payment of commission other
than through broker or owner-developer unlawful." NRS 645.280 clearly contemplates
compensation of unlicensed real estate salesmen. Commission Express has not performed, or
promised to perform, any services as an unlicensed real estate salesman or broker. The statute
prohibits only payments made "in consideration of services performed or to be performed" by an
unlicensed real estate salesman or broker. NRS 645.280 does not prevent an agent from
assigning the proceeds of commission he has earned as a licensed real estate salesman.
5. Commission Express's Claims For Breach Of The Implied Covenant
Of Good Faith And Fair Dealing, Third Party Breach Of Contract
And Unjust Enrichment Survive Defendant's Summary Judgment
Motion.
Liberty Realty argued below that (i) because it was not a party to any contract with
Commission Express, it cannot be liable for breach of the covenant of good faith and fair
dealing; and (ii) because it was not a party to any contract with Low that was intended to benefit
Commission Express, it cannot be liable for third party breach of contract. See Defendant's
Motion for Summary Judgment at 8, 10. Liberty Realty further claimed that the Notice of
Assignment is nothing more than an informational document that does not create any duty owed
by Liberty Realty to Commission Express. See id. at 8.
As discussed above, however, NRS chapter 104 controls the instant case. NRS 104.9406
provides,
92552_3 117•5.2 Page 10 of 14
(Page 14 of 19)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
KUM• •PFER
3800 How•
Parkv•
L•s Vegas. Ne•cle •lOg
[A]n account debtor on an account, chattel paper or a payment
intangible may discharge its obligation by paying the assignor
until, but not after, the account debtor receives a notification,
authenticated by the assignor or the assignee, that the amount due
or to become due has been assigned and that payment is to be
made to the assignee. After receipt of the notification, the account
debtor may discharge its obligation by paying the assignee and
may not discharge the obligation by paying the assignor.
(Emphasis added). "Authenticate" is defined as "to sign" or "to execute." NRS 104.9102(g).
Clearly, once Liberty Realty signed the Notice of Assignment, it could not discharge its
obligation to pay on the Account Receivable by paying Low. Low validly assigned all her rights
against Liberty Realty exclusively to Commission Express. Exhibit 3 at ¶ 2 of Plaintiff's
Opposition and Countermotion for Summary Judgment ("THIS ASSIGNMENT IS
IRREVOCABLE AND EXCLUSIVE."). Therefore, all benefits that accrued to Low through her
dealings with Liberty Realty were assigned to Commission Express, and Commission Express
had the exclusive right to stand in the shoes of Low as against Liberty Realty. In the absence of
any subsequent agreement to the contrary between Liberty Realty and Commission Express, the
only way that Liberty Realty could discharge its obligation to pay on the Account Receivable
was to pay the proceeds of the Account Receivable to Commission Express directly, in
accordance with the provisions of the Notice of Assignment. See NRS 104.9406; Exhibit 3 at ¶ 4
of Plaintiff's Opposition and Countermotion for Summary Judgment.
Liberty Realty's arguments below for summary judgment on Commission Express's
claims for breach of the implied covenant of good faith and fair dealing and for third party
breach of contract fail because under NRS chapter 104, the Notice of Assignment was sufficient
to obligate Liberty Realty to pay the proceeds of the Account Receivable directly to Commission
Express. Therefore, Liberty Realty's Motion for Summary Judgment against Commission
Express on its claims for breach of the implied covenant of good faith and fair dealing and for
third party breach of contract should be denied.
92•,2_3 11705.2 Page of 14
(Page 15 of 19)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
8ONNE8 & Rr•R,•
LasVegas, Nev• 8g109
Liberty Realty also argued that because Commission Express did not confer any benefit
on Liberty Realty, Liberty Realty cannot be liable for unjust enrichment. See Defendant's
Motion for Summary Judgment at 14. Liberty Realty cited the Nevada Supreme Court ease of
Leasepartners Corp. v. Robert T. Brooks Trust, 113 Nev. 747, 942 P.2d 182 (1997), in support of
its position. Id. In Leasepartners, the Court stated that unjust enrichment occurs whenever a
person has and retains a benefit that in equity and good conscience belongs to another. Id.
Liberty Realty, by refusing to pay the proceeds of the Account Receivable, has retained a benefit
that in equity belongs to Commission Express. Construing the facts in the light most favorable
to the non-moving party, summary judgment cannot be granted to Liberty Realty against
Commission Express on its claim for unjust enrichment. See Parman v. Petricciani, 70 Nev.
427, 272 P.2d 492 (1954).
6. Bell Acted As Liberty Realty's Agent.
Liberty Realty also made the argument that Bell did not have authority to bind it on the
Notice of Assignment. See Defendant's Motion for Summary Judgment at 9. However,
Nevada's laws of agency belie this argument. NRS 104.1103 provides, "Unless displaced by the
particular provisions of this chapter, the principles of law and equity, including.., principal and
agent, estoppel, fraud, misrepresentation or other validating or invalidating cause shall
supplement its provisions." In the instant ease, Bell had apparent authority to sign the Notice of
Assignment on behalf of Liberty Realty. See Great American Ins. Co. v. General Builders, Inc.,
113 Nev. 346, 934 P.2d 257 (1997).
7. The Assignment Does Not Violate NRS Chapter 104.
Liberty Realty asserted below that the Assignment violates the terms of the Independent
Contractor Agreement ("ICA") between Low and Liberty Realty. See Defendant's Reply To
Opposition To Motion For Summary Judgment And Opposition To Plaintiff's Countermotion
92552_3 11705.• Page 12 of 14
(Page 16 of 19)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
19
20
21
22
23
24
L•u•V•I•, N•'•d• 8•109
For Summary Judgment at 9. Specifically, Liberty Realty first argued that Low violated the term
of the ICA that states, "Agent shall not have authority to bind the Broker by any promises or
representations, nor commit Broker to any expense whatsoever." See id.
However, Low has not bound Liberty Realty in any additional ways by selling her right
to receive the proceeds of her Account Receivable to which Low was already entitled. Liberty
Realty was already bound to pay a commission to Low; Low is entitled to sell her rights, title and
interests in property that she has a right to receive. See Dr. Miles Medical Co. v. John D. Park &
Sons, Co., 220 U.S. 373,383 (1911) ("The right of alienation is one of the essential incidents of a
right of general property in movables, and restraints upon alienation have been generally
regarded as obnoxious to public policy, which is best subserved by great freedom of traffic in
such things as pass from hand to hand."); 8A Anderson On The Uniform Commercial Code § 9-
102:1.5, PEB Commentary No. 14 (stating that no provision of Article 9 is intended to prevent
the transfer of ownership of accounts or chattel paper). The Assignment does nothing except to
direct Liberty Realty to pay the proceeds of the Account Receivable, which it already owed, to
Low's assignor. Therefore, Low has not violated the ICA.
Liberty Realty next argued below that Low violated the term of the ICA that states,
"Agent shall abide by the code of Ethics and By-Laws of the Greater Las Vegas Association of
Realtors, and will not violate any statute, ordinance or regulation applicable to the conduct of the
real estate brokerage business." See id. Liberty Realty did not explain how the Assignment
potentially violates "the code of Ethics and By-Laws of the Greater Las Vegas Association of
Realtors." As discussed above and in Plaintiff's Opposition To Defendant's Motion For
Summary Judgment And Countermotion For Summary Judgment, the Assignment does not
violate any statutes.
Lastly, Liberty Realty argued that the Assignment violated NRS 104.9406 because the
Page 13 of 14
(Page 17 of 19)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
BON.•[R & RENSHAW
Las Vegas, Nev'• 891(•e
Notice of Assignment did not reasonably identify the rights assigned. The Notice of Assignment
is perfectly clear on this point and states,
PLEASE TAKE NOTICE that the Agent is entitled to a
commission (account receivable) of $7,180 without effect of
deduction at this point in time under the above referenced ratified
contract [sale agreement of 6369 Lookout Mountain Dr. between
Randall & Donna Whitt and Katherine & David Rose] pursuant to
Agent's Independent Contract Agreement which account
receivable has been irrevocably sold and assigned solely to:
COMMISSION EXPRESS (CE).
See Exhibit 3
Countermotion For Summary Judgment.
104.9406.
IV.
of Plaintiff's Opposition To Defendant's Motion For Summary Judgment And
Therefore, the Assignment does not violate NRS
Conclusion
UCC Article 9, codified in Nevada as NRS chapter 104, is the controlling law. Liberty
Realty owed an obligation to pay Low $7,180.00 in commission for settlement of the underlying
real estate. Commission Express validly purchased all rights and interests in Low's Account
Receivable at a discount. Commission Express perfected its rights by filing the appropriate
financing papers under UCC Article 1. Liberty Realty authenticated a Notice of Assignment,
directing it to make all payments due to Low directly to Commission Express. Liberty Realty
has failed to fulfill its obligations to pay on the Account Receivable and the Notice of
Assignment. Therefore, the justice court erred as a matter of law by granting Liberty Realty's
Motion for Summary Judgment. Commission Express respectfully requests that this Court
reverse the decision of the justice court below.
92552_3 '•705.2
Page 14 of 14
(Page 18 of 19)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Ku •MPFER
BeNNI-'R & REh•H•W
3800 I-I¢•¢a•11-h•l•s
Patl•y
La$ Vegas. •m 8910•
ATTORNEY'S CERTIFICATE OF COMPLIANCE
I certify that have read this appellate brief, and to the best of my knowledge,
information, and belief, it is not frivolous or interposed for any improper purpose. I further
certify that this Brief complies with all applicable Nevada Rules of Appellate Procedure. I
understand may be subject to sanctions in the event that the accompanying Brief is not in
conformity with the requirements of the Nevada Rules of Appellate Procedure.
DATED this
• "•'day of June, 2003.
KUMMER KAEMPFER BONNER & RENSHAW
BY:
THOMAS F. KUMMER"
Nevada Bar No. 01200
SHERI ANN FORBES
Nevada Bar No. 07337
Seventh Floor
3800 Howard Hughes Parkway
Las Vegas, Nevada 89109
Attorneys for Plaintiff
S&B Associates LLC dba
Commission Express
92552_3 •705.2 Page 15 of 14
(Page 19 of 19)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
K•I•R
CERTIFICATE OF MAILING
Pursuant to NRCP 5(b), I hereby certify that service of the foregoing APPELLANT'S
OPENING BRIEF was made this date by depositing a tree copy of the same for mailing at Las
Vegas, Nevada, addressed to:
Deborah L. Elsasser, Esq.
THORNDAL, ARMSTRONG, DELK,
BALKENBUSH & EISINGER
1100 E. Bridger Avenue
P.O. Drawer 2070
Las Vega.s, NV 89125-2070
Attorneys for Defendant
Liberty Realty
DATED this
•day of June, 2003.
ompfo Z'
92552_3 11705.2 Page 16 of 14
FOR A PICKUP CALL 1-800-225-5345 OR GO TO WWW.DHL.COM
Sender:
Name Date
Company
Street
City State ZIP Code
Phone
Ref. #
Middletown-GWA
Receiver:
Xerox Green World Alliance
6500 State Route 63
Middletown, OH
PIECES
1
ZIP CODE
45044
GDS
GGGGGGGGGGGGGGG
Shipment No. A68235893821
EZ RETURN
ROUTING

More Related Content

What's hot

Lecture 11 misrepresentation - notes
Lecture 11   misrepresentation - notesLecture 11   misrepresentation - notes
Lecture 11 misrepresentation - notesRamona Vansluytman
 
Geraldine redmonddecl.msj
Geraldine redmonddecl.msjGeraldine redmonddecl.msj
Geraldine redmonddecl.msjjamesmaredmond
 
Lecture 11 misrepresentation - cases
Lecture 11   misrepresentation - casesLecture 11   misrepresentation - cases
Lecture 11 misrepresentation - casesRamona Vansluytman
 
Lecture 8 Exclusion and Limiting Clauses - Cases
Lecture 8   Exclusion and Limiting Clauses - CasesLecture 8   Exclusion and Limiting Clauses - Cases
Lecture 8 Exclusion and Limiting Clauses - CasesRamona Vansluytman
 
Contracts - Privity lecture
Contracts - Privity lectureContracts - Privity lecture
Contracts - Privity lectureFrancois Brun
 
James Metcalfe's real estate market update march 2012
James Metcalfe's real estate market update march 2012James Metcalfe's real estate market update march 2012
James Metcalfe's real estate market update march 2012James Metcalfe
 
L ecture 3 consideration - notes
L ecture 3   consideration - notesL ecture 3   consideration - notes
L ecture 3 consideration - notesRamona Vansluytman
 
3 Certainties of Trust
3 Certainties of Trust3 Certainties of Trust
3 Certainties of TrustMuzakkir Afiq
 
D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)
D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)
D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)Richard Goren
 
Lecture 8 Collateral Contracts - Notes
Lecture 8   Collateral Contracts - NotesLecture 8   Collateral Contracts - Notes
Lecture 8 Collateral Contracts - NotesRamona Vansluytman
 
The Three Certainties
The Three CertaintiesThe Three Certainties
The Three Certaintiesa_sophi
 
Edward O'Donnell vs. Countrywide and Bank of America - Lawsuit
Edward O'Donnell vs. Countrywide and Bank of America - LawsuitEdward O'Donnell vs. Countrywide and Bank of America - Lawsuit
Edward O'Donnell vs. Countrywide and Bank of America - LawsuitUmesh Heendeniya
 

What's hot (20)

Intention case law
Intention   case lawIntention   case law
Intention case law
 
Lecture 11 misrepresentation - notes
Lecture 11   misrepresentation - notesLecture 11   misrepresentation - notes
Lecture 11 misrepresentation - notes
 
Geraldine redmonddecl.msj
Geraldine redmonddecl.msjGeraldine redmonddecl.msj
Geraldine redmonddecl.msj
 
Lecture 11 misrepresentation - cases
Lecture 11   misrepresentation - casesLecture 11   misrepresentation - cases
Lecture 11 misrepresentation - cases
 
Lecture 8 Exclusion and Limiting Clauses - Cases
Lecture 8   Exclusion and Limiting Clauses - CasesLecture 8   Exclusion and Limiting Clauses - Cases
Lecture 8 Exclusion and Limiting Clauses - Cases
 
Contracts - Privity lecture
Contracts - Privity lectureContracts - Privity lecture
Contracts - Privity lecture
 
James Metcalfe's real estate market update march 2012
James Metcalfe's real estate market update march 2012James Metcalfe's real estate market update march 2012
James Metcalfe's real estate market update march 2012
 
L ecture 3 consideration - notes
L ecture 3   consideration - notesL ecture 3   consideration - notes
L ecture 3 consideration - notes
 
Notes on consideration
Notes on considerationNotes on consideration
Notes on consideration
 
Mistake
MistakeMistake
Mistake
 
Lecture 10 mistake - cases
Lecture 10   mistake - casesLecture 10   mistake - cases
Lecture 10 mistake - cases
 
LAW503 Notes ++
LAW503 Notes ++LAW503 Notes ++
LAW503 Notes ++
 
Intention notes
Intention   notesIntention   notes
Intention notes
 
3 Certainties of Trust
3 Certainties of Trust3 Certainties of Trust
3 Certainties of Trust
 
04 c onsideration new
04 c onsideration new04 c onsideration new
04 c onsideration new
 
Lecture 12 privity - notes
Lecture 12   privity - notesLecture 12   privity - notes
Lecture 12 privity - notes
 
D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)
D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)
D'Agostino v Federal Ins Co , 969 F. Supp. 2d 116 (D. Mass. 2013)
 
Lecture 8 Collateral Contracts - Notes
Lecture 8   Collateral Contracts - NotesLecture 8   Collateral Contracts - Notes
Lecture 8 Collateral Contracts - Notes
 
The Three Certainties
The Three CertaintiesThe Three Certainties
The Three Certainties
 
Edward O'Donnell vs. Countrywide and Bank of America - Lawsuit
Edward O'Donnell vs. Countrywide and Bank of America - LawsuitEdward O'Donnell vs. Countrywide and Bank of America - Lawsuit
Edward O'Donnell vs. Countrywide and Bank of America - Lawsuit
 

Viewers also liked

Exposicion sobresaliente de seminario de fisiopatologia
Exposicion sobresaliente de seminario de fisiopatologiaExposicion sobresaliente de seminario de fisiopatologia
Exposicion sobresaliente de seminario de fisiopatologiajimenaaguilar22
 
ByronLeeRay2016
ByronLeeRay2016ByronLeeRay2016
ByronLeeRay2016Byron Ray
 
Presentacion corporativa Ticketsmx
Presentacion corporativa TicketsmxPresentacion corporativa Ticketsmx
Presentacion corporativa TicketsmxGuillermo Caballero
 
Appellants' - Neighborhood Association - Opening Brief - 3.2.15
Appellants' - Neighborhood Association - Opening Brief - 3.2.15Appellants' - Neighborhood Association - Opening Brief - 3.2.15
Appellants' - Neighborhood Association - Opening Brief - 3.2.15Kara Nelson
 
Appellants' Opening Brief 061413
Appellants' Opening Brief  061413Appellants' Opening Brief  061413
Appellants' Opening Brief 061413J.B. Grossman
 
Starting a Business in Hawaii (Acupuncture)
Starting a Business in Hawaii (Acupuncture)Starting a Business in Hawaii (Acupuncture)
Starting a Business in Hawaii (Acupuncture)Ryan K. Hew
 

Viewers also liked (10)

Evaluation
EvaluationEvaluation
Evaluation
 
Participio griego
Participio griegoParticipio griego
Participio griego
 
Exposicion sobresaliente de seminario de fisiopatologia
Exposicion sobresaliente de seminario de fisiopatologiaExposicion sobresaliente de seminario de fisiopatologia
Exposicion sobresaliente de seminario de fisiopatologia
 
ByronLeeRay2016
ByronLeeRay2016ByronLeeRay2016
ByronLeeRay2016
 
Flashtennis semanario 25 abril 2016
Flashtennis semanario 25 abril 2016Flashtennis semanario 25 abril 2016
Flashtennis semanario 25 abril 2016
 
Presentacion corporativa Ticketsmx
Presentacion corporativa TicketsmxPresentacion corporativa Ticketsmx
Presentacion corporativa Ticketsmx
 
Appellants' - Neighborhood Association - Opening Brief - 3.2.15
Appellants' - Neighborhood Association - Opening Brief - 3.2.15Appellants' - Neighborhood Association - Opening Brief - 3.2.15
Appellants' - Neighborhood Association - Opening Brief - 3.2.15
 
Appellants' Opening Brief 061413
Appellants' Opening Brief  061413Appellants' Opening Brief  061413
Appellants' Opening Brief 061413
 
Starting a Business in Hawaii (Acupuncture)
Starting a Business in Hawaii (Acupuncture)Starting a Business in Hawaii (Acupuncture)
Starting a Business in Hawaii (Acupuncture)
 
writing sample opening brief quick
writing sample opening brief quickwriting sample opening brief quick
writing sample opening brief quick
 

Similar to Commission Express--Appellant's Opening Brief

51.sulphur mtgrespmotavoidlien
51.sulphur mtgrespmotavoidlien51.sulphur mtgrespmotavoidlien
51.sulphur mtgrespmotavoidlienjamesmaredmond
 
Sample complaint for rescission of contract in California
Sample complaint for rescission of contract in CaliforniaSample complaint for rescission of contract in California
Sample complaint for rescission of contract in CaliforniaLegalDocsPro
 
Frank Yan Sacramento Mortgage Fraud Lawsuit
Frank Yan Sacramento Mortgage Fraud LawsuitFrank Yan Sacramento Mortgage Fraud Lawsuit
Frank Yan Sacramento Mortgage Fraud Lawsuitfrankyansacramentofraud
 
Motion to change venue
Motion to change venueMotion to change venue
Motion to change venueLegal Remedy
 
ABI Journal Article 7-2014
ABI Journal Article 7-2014ABI Journal Article 7-2014
ABI Journal Article 7-2014Janine Lee
 
Saud_Summary_Experience__2016
Saud_Summary_Experience__2016Saud_Summary_Experience__2016
Saud_Summary_Experience__2016Saud A.H. Khokhar
 
Frank Yan Sacramento Mortgage Fraud
Frank Yan Sacramento Mortgage Fraud Frank Yan Sacramento Mortgage Fraud
Frank Yan Sacramento Mortgage Fraud sacramentofraudnews
 
Motionto remand
Motionto remandMotionto remand
Motionto remandmzamoralaw
 
Doc962 freeman group motion compromise & settlement_ a walk-away
Doc962 freeman group motion compromise & settlement_ a walk-awayDoc962 freeman group motion compromise & settlement_ a walk-away
Doc962 freeman group motion compromise & settlement_ a walk-awaymalp2009
 
Doc723 motion to vacate claims & stay further proceeding
Doc723 motion to vacate claims & stay further proceedingDoc723 motion to vacate claims & stay further proceeding
Doc723 motion to vacate claims & stay further proceedingmalp2009
 
RK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In Miami
RK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In MiamiRK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In Miami
RK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In Miamirkcenters
 
411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docx
411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docx411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docx
411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docxalinainglis
 

Similar to Commission Express--Appellant's Opening Brief (20)

10000000032
1000000003210000000032
10000000032
 
Cox opp to mot dismiss
Cox opp to mot dismissCox opp to mot dismiss
Cox opp to mot dismiss
 
51.sulphur mtgrespmotavoidlien
51.sulphur mtgrespmotavoidlien51.sulphur mtgrespmotavoidlien
51.sulphur mtgrespmotavoidlien
 
Sample complaint for rescission of contract in California
Sample complaint for rescission of contract in CaliforniaSample complaint for rescission of contract in California
Sample complaint for rescission of contract in California
 
Frank Yan Sacramento Mortgage Fraud Lawsuit
Frank Yan Sacramento Mortgage Fraud LawsuitFrank Yan Sacramento Mortgage Fraud Lawsuit
Frank Yan Sacramento Mortgage Fraud Lawsuit
 
Motion to change venue
Motion to change venueMotion to change venue
Motion to change venue
 
ABI Journal Article 7-2014
ABI Journal Article 7-2014ABI Journal Article 7-2014
ABI Journal Article 7-2014
 
Saud_Summary_Experience__2016
Saud_Summary_Experience__2016Saud_Summary_Experience__2016
Saud_Summary_Experience__2016
 
Frank Yan Sacramento Mortgage Fraud
Frank Yan Sacramento Mortgage Fraud Frank Yan Sacramento Mortgage Fraud
Frank Yan Sacramento Mortgage Fraud
 
10000001213
1000000121310000001213
10000001213
 
10000001216
1000000121610000001216
10000001216
 
10000001211
1000000121110000001211
10000001211
 
10000001214
1000000121410000001214
10000001214
 
10000000031
1000000003110000000031
10000000031
 
Motionto remand
Motionto remandMotionto remand
Motionto remand
 
Doc962 freeman group motion compromise & settlement_ a walk-away
Doc962 freeman group motion compromise & settlement_ a walk-awayDoc962 freeman group motion compromise & settlement_ a walk-away
Doc962 freeman group motion compromise & settlement_ a walk-away
 
Doc723 motion to vacate claims & stay further proceeding
Doc723 motion to vacate claims & stay further proceedingDoc723 motion to vacate claims & stay further proceeding
Doc723 motion to vacate claims & stay further proceeding
 
RK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In Miami
RK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In MiamiRK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In Miami
RK Associates, Raanan Katz Were Alleged In Unlawful Ejectment In Miami
 
411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docx
411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docx411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docx
411 N.J.Super. 236Superior Court of New Jersey,Appellate Divis.docx
 
QDC03-148
QDC03-148QDC03-148
QDC03-148
 

Commission Express--Appellant's Opening Brief

  • 1. (Page 1 of 19) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Vegas. Ne• 89109 0RIGI AIL BREF THOMAS F. KUMMER Nevada Bar No. 01200 SHERI ANN FORBES Nevada Bar No. 07337 KUMMER KAEMPFER BONNER & RENSHAW Seventh Floor 3800 Howard Hughes Parkway Las Vegas, Nevada 89109 Telephone: (702) 792-7000 Attorneys for Plaintiff S&B Associates LLC dba Commission Express Las Vegas DISTRICT COURT CLARK COUNTY, NEVADA S&B ASSOCIATES, LLC, a limited liability company, d/b/a COMMISSION EXPRESS LAS VEGAS, Plaintiff, VS. HELEN LOW, an individual; LIBERTY REALTY, a Nevada corporation; DOES I through X, inclusive; and ROE CORPORATIONS I through X, inclusive, Defendant. Case No. Dept. No. A466468 X APPELLANT'S OPENING BRIEF 92552_3 g05.2
  • 2. (Page 2 of 19) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I•at•y TABLE OF CONTENTS MEMORANDUM OF POINTS AND AUTHORITIES I. Statement of the Issue Presented for Review 1 II. Statement of the Case 1 A. Summary B. Factual Background III. Argument 4 A. Standard of Review 4 B. Liberty Realty's Motion for Summary Judgment Should Have Been Denied by the Justice Court Below 4 1. Article 9 Of The UCC Controls In This Case 4 2. The Subject Transaction Between Helen Low and Commission Express Is Clearly An Assignment Of An Account Receivable 5 3. It Is Legal Under Nevada Revised Statutes For Liberty Realty To Pay Commission Express The Account Receivable Pursuant To The Account Receivable Sale And Assignment Agreement 6 4. The Assignment Does Not Increase The Burden Or Risk Of Liberty Realty, And Does not Violate NRS 645.280 8 a. Liberty Realty's obligations were not enlarged by the Assignment 8 b. The Assignment does not violate NRS 645.280 9 5. Commission Express's Claims For Breach Of The Implied Covenant Of Good Faith And Fair Dealing, Third Party Breach Of Contract And Unjust Enrichment Survive Defendant's Summary Judgment Motion 10 6. Bell Acted As Liberty Realty's Agent 12 7. The Assignment Does Not Violate NRS Chapter 104 12 IV. Conclusion 14 ATTORNEY'S CERTIFICATE OF COMPLIANCE 14 92552_3 11705.2 Pagei
  • 3. (Page 3 of 19) 1 2 3 4 5 6 7 8 9 10 I1 12 TABLE OF CASES, STATUTES AND OTHER AUTHORITIES CITED Cases Alsenz v. Clark County School District, 109 Nev. 1062, 1065 (1993) 8 Bish v. Guaranty Nat'l Ins. Co., 109 Nev. 133, 848 P.2d 1057 (1993) 4 Boland v. Nevada Rock & Sand Co., 111 Nev. 608, 894 P.2d 988 (1995) 4 Cimini v. Nevada Ins. Guar. Ass 'n, 112 Nev. 442, 915 P.2d 279 (1996) 4 Dermody v. City ofReno, 113 Nev. 207, 931 P.2d1354 (1997) 4 Dickenson v. State Dept. of Wildlife, 110 Nev. 934, 877 P.2d 1059 (1994) 6 Dr. Miles Medical Co. v. John D. Park & Sons, Co., 220 U.S. 373, 383 (1911) 13 Great American lns. Co. v. General Builders, lnc., 113 Nev. 346, 934 P.2d 257 (1997) 13 Leaseparmers Corp. v. Robert T. Brooks Trust, 113 Nev. 747, 942 P.2d 182 (1997) 12 Lorenz v. Beltio, Ltd., 114 Nev. 795, 963 P.2d 488 1998) 6 Musserv. Bankof America, 114 Nev. 945, 947, 964 P.2d 51, 52 (1998) 6 Oliver v. Barrick Goldstrike Mines, 111 Nev. 1338, 905 P.2d 168 (1995) 4 Parman v. Petricciani, 70 Nev. 427, 272 P.2d 492 (1954) 12 Pressler v. City of Reno, 50 P.3d 1096 (2002) 4 Statutes NRS 104. 9101 4 NRS I04.9102(b) 5 NRS 104.9102(c) 5 NRS 645.280(1) 6, 7 NRS chapter 104 1, 11, 12, 14 Other Cited Authorities 97-28 Op. Art 'y Gen. 105, 108 (1997) 7 Black's Law Dictionary 410 (Abridged 6 'h ed. 1991) 6 •_z 1,ros.2 Page ii
  • 4. (Page 4 of 19) 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3800 Howl'el Hugh•s I.•s V•as. N•v•:• 89509 MEMORANDUM OF POINTS AND AUTHORITIES I. Statement of the Issue Presented for Review Did the justice court err by granting Defendant/Respondent Liberty Realty's Motion for Summary Judgment against Plaintiff/Appellant Commission Express on all its claims for relief?. II, Statement of the Case A. Summary Helen Low ("Low"), a licensed real estate agent, earned a commission from Liberty Realty in connection with Low's representation of the purchasers of real property located in Las Vegas, Nevada. Low validly sold at a discount to S&B Associates, LLC, dba Commission Express Las Vegas ("Commission Express") all her rights, title and interest in the commission she earned from Liberty Realty. Low's assignment of the proceeds of her commission to Commission Express was made pursuant to Article 9 of the Uniform Commercial Code ("UCC"), codified in Nevada as NRS chapter 104. Commission Express perfected its rights, title and interest in Low's commission by filing pursuant to Article of the UCC a financing statement with the Nevada Secretary of State. Liberty Realty executed a Notice of Assignment putting it on notice that Low had assigned the proceeds of her commission to Commission Express. Liberty Realty failed to make such payment to Commission Express in direct violation of the provisions of NRS chapter 104. Liberty Realty was not entitled to summary judgment against Commission Express and the justice court erred below in granting summary judgment in Liberty Realty's favor, and Commission Express was entitled to a grant of summary judgment on its countermotion for summary judgment against Liberty Realty. B. Factual Background Defendant Helen Low ("Low") is a licensed Nevada real estate agent, working as an independent contractor for Liberty Realty. See Defendant's Motion for Summary Judgment at 4. 92552_3 11705.2 Page of14
  • 5. (Page 5 of 19) Low represented Randall and Donna Whitt who, on March 3, 2002, made an offer to buy the property at 6369 Lookout Mountain Drive, Las Vegas, Nevada. /d. Under the terms of the offer and upon settlement of the real estate transaction, Low was entitled to a real estate commission of $7,180.00 from Defendant Liberty Realty for the services she performed (the "Account Receivable"). ld. On March 3, 2002, and then again on March 21, 2002, Low sold, assigned and conveyed her rights, title and interest to the Account Receivable to Plaintiff Commission Express at a discount. See Exhibits 1 and 2 of Plaintiff's Opposition And Countermotion for Summary Judgment. The March 3, 2002 sale and assignment, and the March 21, 2002 sale and assignment, together assigned to Commission Express all of Low's rights in the total amount of the Account Receivable. ld. On March 6, 2002, Low and Commission Express executed a Master Repurchase And Security Agreement. See Exhibit 7 of Plaintiff's Opposition and Countermotion for Summary Judgment. On March 11, 2002, Commission Express filed a UCC Financing Statement, pursuant to UCC-1, with the Nevada Secretary of State. See Exhibit 8 of Plaintiff's Opposition and Countermotion for Summary Judgment. On March 6, 2002, Low and Richard Bell ("Bell"), broker for Liberty Bell, executed a Notice Of Assignment that informed Liberty Realty of Low's sale and assignment to Commission Express of Low's rights and interest in the Account Receivable. See Exhibit 4 of Plaintiff's Opposition and Countermotion for Summary Judgment; Reporter's Transcript ("RT") at 6-7. Liberty Realty admits in its Motion that Bell is a broker employed by Liberty Bell. See Defendant's Motion for Summary Judgment at 5. The Notice Of Assignment specifically •rovided, Payments due or to become due to [Low] under the above referenced contract will be made to [Liberty Realty] by the •2552_3 117052 Page 2 of 14
  • 6. (Page 6 of 19) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 KUI•MEII ItA•PFI•R Se•n• Fl•r Las Vegas. Nevada 89109 Settlement Agent, and will then be directly paid ONLY to Commission Express by [Liberty Realty] after deducting any fees owed to [Liberty Realty] by [Low]. Should the amount paid to [Commission Express] by [Liberty Realty] be less than the amount in [paragraph] 1 abo•e, [Low] agrees to immediately pay the difference to [Commission Express] with Certified or Cashier's check. See Exhibit 3 at ¶ 3 of Plaintiff's Opposition and Cotmtermotion for Summary Judgment. Additionally, the Notice of Assignment provided, "Upon written notice from [Commission Express] that [Low] is in Default, [Low] authorizes and directs [Liberty Realty] to pay [Commission Express], after deducting fees as in 4 above, all monies due and payable to [Low] to fulfill such balance as is due [Commission Express]." ld. at ¶ 6. The Notice of Assignment released Liberty Realty from liability only if the underlying real estate transaction did not close. Id. at ¶ 5. On March 6, 2002, a Reminder of Commission Assignment was sent to Liberty Realty, and a Reminder of Acknowledgement was sent to the settlement agent. See respectively, Exhibits 4 and 5 of Plaintiff's Opposition and Countermotion for Summary Judgment. On May 6, 2002, title in 6369 Lookout Mountain Drive, Las Vegas, Nevada, passed to Randall and Donna Whitt. See Exhibit 6 of Plaintiff's Opposition and Countermotion for Summary Judgment. In direct contravention of the Notice of Assignment, Liberty Realty paid the proceeds of the Account Receivable directly to Low. See Defendant's Motion for Summary Judgment at Liberty Realty has failed and continues to fail to pay the proceeds of the Account Receivable to Commission Express. See respectively, Exhibits 9 and 10 of Plaintiff's Opposition and Countermotion for Summary Judgment. On May 0, 2002, a Demand For Payment was sent to Liberty Realty, and a Notice of Default was sent to Low. ld. On August 9, 2002, Commission Express filed suit in justice court. See Plaintiff's Complaint. Commission Express brings this 92552_3 $705.2 Page 3 of 14
  • 7. (Page 7 of 19) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 KUM•.R K•EMPFER I•mlNt•R & REN•AW • H•rd Hu•he• P•kw'a• appeal before this Court from the justice's court's error in granting Liberty Realty's Motion For Summary Judgment and in denying Commission Express's Countermotion For Summary Judgment. III. Argument A. Standard of Review The Nevada Supreme Court has stated that an appeal from the grant of a motion for summary judgment is reviewed de novo without deference to the decision of the court below. Pressler v. City of Reno, 50 P.3d 1096 (2002); Cimini v. Nevada lns. Guar. Ass 'n, 112 Nev. 442, 915 P.2d 279 (1996); 0liver v. Barrick Goldstrike Mines, 111 Nev. 1338, 905 P.2d 168 (1995). To prevail on a motion for summary judgment, the moving party must show that there are no genuine issues as to any material fact with regards to the summary judgment issue, and that the moving party is entitled to judgment as a matter of law on the summary judgment issue. NRCP 56(c). A party may, at any time, move with or without supporting affidavits, for summary judgment in its favor as to all or any part of the claims made against it. NRCP 56(b). Summary judgment is appropriate when there are no genuine issues of any material fact with regards to the summary judgment issue and the moving party is entitled to judgment as a matter of law. Dermody v. City of Reno, 113 Nev. 207, 931 P.2d 1354 (1997); Bish v. Guaranty Nat7 Ins. Co., 109 Nev. 133, 848 P.2d 1057 (1993). In order to prevail, the nonmoving party must show specific facts demonstrating the existence of a genuine issue for trial. Boland v. Nevada Rock & SandCo., 111 Nev. 608, 894 P.2d 988 (1995). BQ Liberty Realty's Motion for Summary Judgment Should Have Been Denied by the Justice Court Below. 1. Article 9 Of The UCC Controls In This Case. The UCC is codified in Nevada as chapter 104 of the Nevada Revised Statutes. NRS 92552_3 117052 Page 4 of 14
  • 8. (Page 8 of 19) 104.9101 et seq. codifies Article 9 of the UCC, Secured Transactions. NRS 104.9109 provides that the protections of Article 9 apply to "sale of accounts, chattel paper, payment intangibles or promissory notes." NRS 104.9102(b) defines "account" as "a fight to payment of a monetary obligation, whether or not earned by performance." Additionally, NRS 104.9102(c) defines "account debtor" as "a person obligated on an account, chattel paper or general intangible." Clearly, Low's sale of her Account Receivable to Commission Express is specifically covered by NRS 104.9109. Because Low had a right to a $7,180.00 payment and Liberty Realty was obligated to make that payment to Low, Low's Account Receivable is an "account" as defined by NRS 104.9102(b), and Liberty Realty is an "account debtor" as defined by NRS 104.9102(c). 2. The Subject Transaction Between Helen Low And Commission Express Is Clearly An Assignment Of An Account Receivable. Liberty Realty claimed below, "The subject transaction was, in truth, a loan, and not factoring and did not involve the assignment of an 'account receivable.'" See Defendant's Reply To Opposition To Motion For Summary Judgment And Opposition To Plaintiff's Countermotion For Summary Judgment at 6. Liberty Realty makes this illogical assertion, unsupported by any authority, despite the fact that every document signed by Defendant Helen Low ("Low") and Liberty Realty clearly states that the subject transaction was an assignment and sale of an account receivable (the "Assignment"). See Exhibits 1, 2, 3, 4 and 7 of Plaintiff's Opposition to Defendant's Motion For Summary Judgment And Countermotion For Summary Judgment. Moreover, the documents signed by Low affirmatively state that the parties acknowledge that the Assignment is not a loan. Specifically, the Account Receivable Sale And Assignment Agreement states, "Agent acknowledges that this Agreement is not a loan or a consumer transaction, but the sale of a business account receivable at a discount for commercial purposes." See Exhibits and 2 at ¶ 5 of Plaintiff's Opposition to Defendant's Motion For Page 5 of 14
  • 9. (Page 9 of 19) 2 3 4 5 6 7 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.15 V•li. Nlvi(Ii 8•11• Summary Judgment And Countermotion For Summary Judgment (emphasis in original). The Master Repurchase and Security Agreement contains identical language. See Exhibit 7 at ¶ 10 of Plaintiff's Opposition to Defendant's Motion For Summary Judgment And Countermotion For Summary Judgment. Interpretation of a contract is a question of law. Musser v. Bank of America, 114 Nev. 945, 947, 964 P.2d 51, 52 (1998); Lorenz v. Beltio, Ltd., 114 Nev. 795, 963 P.2d 488 1998); Dickenson v. State Dept. of Wildlife, I0 Nev. 934, 877 P.2d 1059 (1994). Liberty Realty admits that both Low and Richard Bell of Liberty Realty signed the documents that effectuated the Assignment. The undisputed evidence clearly shows that the Assignment is in no way a loan, but is in fact a sale of an account receivable at a discount. In other words, the Assignment is a factor. See Black's Law Dictionary 410 (Abridged 6 th ed. 1991). 3. It Is Legal Under Nevada Revised Statutes For Liberty Realty To Pay Commission Express The Account Receivable Pursuant To The Account Receivable Sale And Assignment Agreement. Liberty Realty misconstrued Nevada law by claiming in its Motion for Summary Judgment that NRS 645.280(1) makes it illegal for Liberty Realty to pay the proceeds of the Account Receivable directly to Commission Express. See Defendant's Motion for Summary Judgment at 12-I 3. In support of its claim, Liberty Realty quotes only a portion of NRS 645.280(1), leaving out language that is important to interpretation of the statute, ld. NRS 645.280(1) provides in its entirety, It is unlawful for any licensed real estate broker, or broker- salesman or salesman to offer, promise, allow, give or pay, directly or indirectly, any part or share of his commission, compensation or finder's fee arising or accruing from any real estate transaction to any person who is not a licensed real estate broker, broker- salesman or salesman, in consideration of services performed or to be performed by the unlicensed person. A licensed real estate broker may pay a commission to a licensed broker of another state. 92552_3 117O5.2 Page 6 of 14
  • 10. (Page 10 of 19) 2 3 4 5 6 7 8 9 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 •UMMER KAEMPFER BONNER & RENSHAW Sevenl• Floor 3600 Howard Hughes I.as V•Oss. Nev•d• 891•EI NRS 645.280(1) (emphasis added). NRS 645.280 is unmistakably an attempt to prevent brokers from paying any portion of a commission to anyone other than a licensed real estate agent fo._Ar procuring or brokering real estate sales. See 97-28 Op. Att'y Genl05, 108 (1997) ("Only when an unlicensed person does an act that is defined as one that only a broker or salesperson may do is there a prohibition in Nevada law."). The statute does not prevent a broker fi:om forwarding a real estate agent's commission directly to a third party pursuant to a valid assignment. Because the Account Receivable Sale and Assignment Agreement does not contemplate that Commission Express perform any service with regard to the real estate transaetion, NRS 645.280 does not prohibit Liberty Realty from paying the proceeds of an Account Receivable directly to Commission Express. In the instant case, Liberty Realty would not be paying the proceeds of the Account Receivable to Commission Express "in consideration of services performed or to be performed" by Commission Express. Liberty Realty would simply be forwarding the proceeds of Low's Account Receivable to Commission Express pursuant to the validly executed Account Receivable Sale And Assignment Agreement between Low and Commission Express and as contemplated by UCC Article 9. The Nevada Supreme Court has repeatedly stated that "statutory interpretation should avoid absurd or unreasonable results." Alsenz v. Clark County School District, 109 Nev. 1062, 1065 (1993). Liberty Realty's interpretation is an absurd one, and would prevent a broker from paying any part of his commission from the sale of real estate to anyone who isn't a real estate agent; ostensibly, a broker would be prevented from purchasing groceries, paying employees or paying rent with monies received as a commission from a real estate transaction. This Court should reject Liberty Realty's absurd misreading of NRS 645.280. Moreover, NRS 104.9406(6) provides that "a rule of law, statute, or regulation, that 92552_3 11705.2 Page 7 of 14
  • 11. (Page 11 of 19) 2 3 4 5 6 7 8 9 I0 11 I2 13 14 15 16 17 18 19 20 21 22 23 24 KUMMER BOI•IER & REhFJHAW •wmn• • • H• H• V•as, Nevada 89109 prohibits, restricts, or requires the consent of a government, governmental body or official, or account debtor to the assignment or transfer of, or creation of a security interest in, an account or chattel paper is ineffective to the extent that the rule of law, statute or regulation: (a) Prohibits, restricts, or requires the consent of the government, governmental body or official, or account debtor to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account or chattel paper." Therefore, even if NRS 645.280 could be construed to prohibit Liberty Realty from paying the proceeds of the Account Receivable directly to Commission Express, NRS 104.9406(6) renders such an application ineffective where, as here, a security interest has been established under Article 9 of the Uniform Commercial Code ("UCC"). 4. The Assignment Does Not Increase The Burden Or Risk Of Liberty Realty, And Does not Violate N]RS 645.280. a. Liberty Realty's obligations were not enlarged by the Assignment. Liberty Realty claimed below that the Assignment forced Liberty Realty to monitor and track (1) the changing status of the real estate transaction, (2) the status of the commission agreement between Low and her clients, and (3) the status of the amounts owed between Commission Express and Low. See Defendant's Reply To Opposition To Motion For Summary Judgment And Opposition To Plaintiff's Countermotion For Summary Judgment at 7. Liberty Realty's contentions are, once again, belied by the evidence. The only obligation placed on Liberty Realty by the Assignment is to pay the proceeds of the Account Receivable directly to Commission Express instead of to Low. The Notice of Assignment clearly stated, "Payments due or to become due to [Low] under the [Assignment] will be made to [Liberty Realty] by the Settlement Agent, and will then be directly paid ONLY to Commission Express by [Liberty Realty] after deducting any fees owed to [Liberty Realty] by [Low]." See Exhibit 3 at ¶ 4 of Plaintiff's Opposition to Defendant's Motion for Summary •2•:• .7o•.2 Page 8 of 14
  • 12. (Page 12 of 19) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 KUMMER KAEMPFER BONNER & REN:•HAW Seventh 3•00 HO•,•d Vegas. Nevada 89109 Judgment And Countermotion For Summary Judgment (emphasis in original). Whatever Liberty Realty was required to do in conjunction with paying Low her commission was not changed or enlarged by requiring instead that Liberty Realty pay the proceeds of the Account Receivable directly to Commission Express in Low's stead. Moreover, the Notice of Assignment only requires Liberty Realty to pay to Commission Express "[p]ayments due or to become due" to Low. See id. Thus, there is no added risk placed on Liberty Realty by the Assignment. Additionally, the Notice of Assignment clearly shows that both Low and Liberty Realty agreed that "[u]pon written notice from [Commission Express] that [Low] is in Default, [Low] authorizes and directs [Liberty Realty] to pay [Commission Express], after deducting fees as in 4. above, all monies due and payable to [Low] to fulfill such balance as is due [Commission Express]." See Exhibit 3 of Plaintiff's Opposition To Defendant's Motion For Summary Judgment And Countermotion For Summary Judgment. By the terms of the Notice of Assignment, Liberty Realty is not required to "monitor" anything beyond what it would have done had the Assignment not occurred. See Exhibit 3 of Plaintiff's Opposition to Defendant's Motion for Summary Judgment And Countermotion For Summary Judgment. b. The Assignment does not violate NRS 645.280. Liberty Realty argued below that the Assignment violates NRS 645.280, and that to honor the Notice of Assignment would cause Liberty Realty to "ignore the advice and dictates of the Nevada Real Estate Division." See Defendant's Reply To Opposition To Motion For Summary Judgment And Opposition To Plaintiff's Countermotion For Summary Judgment at 8. First, there is no evidence that the Nevada Real Estate Division has ever dictated that an agent cannot assign the proceeds of her commission to a third party. The Nevada Real Estate Division letter that Liberty Realty provided in Exhibit A of Defendant's Motion For Summary Judgment answers only the question of whether a commission may be paid directly to a loan •2552._3 117•.2 Page 9 of I4
  • 13. (Page 13 of 19) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 KUMMER KAEII• PFI:R I•ON•ER & REN"HAW Seven• Floor 381• H•ra La•Vegas, Nev'• •1109 company. As discussed above, the Assigrmaent is no___!t a loan. Exhibit A of Defendant's Motion For Summary Judgment is inapplicable to the instant case. Next, as discussed in Plaintiff's Opposition To Defendant's Motion For Summary Judgment Atzd Countermotion For Summary Judgment at 6-8, the Assignment does not violate NtLS 645.280. The title of NRS 645.280 reads, "Association with or compensation of unlicensed broker, broker-salesman or salesman unlawful; payment of commission other than through broker or owner-developer unlawful." NRS 645.280 clearly contemplates compensation of unlicensed real estate salesmen. Commission Express has not performed, or promised to perform, any services as an unlicensed real estate salesman or broker. The statute prohibits only payments made "in consideration of services performed or to be performed" by an unlicensed real estate salesman or broker. NRS 645.280 does not prevent an agent from assigning the proceeds of commission he has earned as a licensed real estate salesman. 5. Commission Express's Claims For Breach Of The Implied Covenant Of Good Faith And Fair Dealing, Third Party Breach Of Contract And Unjust Enrichment Survive Defendant's Summary Judgment Motion. Liberty Realty argued below that (i) because it was not a party to any contract with Commission Express, it cannot be liable for breach of the covenant of good faith and fair dealing; and (ii) because it was not a party to any contract with Low that was intended to benefit Commission Express, it cannot be liable for third party breach of contract. See Defendant's Motion for Summary Judgment at 8, 10. Liberty Realty further claimed that the Notice of Assignment is nothing more than an informational document that does not create any duty owed by Liberty Realty to Commission Express. See id. at 8. As discussed above, however, NRS chapter 104 controls the instant case. NRS 104.9406 provides, 92552_3 117•5.2 Page 10 of 14
  • 14. (Page 14 of 19) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 KUM• •PFER 3800 How• Parkv• L•s Vegas. Ne•cle •lOg [A]n account debtor on an account, chattel paper or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor. (Emphasis added). "Authenticate" is defined as "to sign" or "to execute." NRS 104.9102(g). Clearly, once Liberty Realty signed the Notice of Assignment, it could not discharge its obligation to pay on the Account Receivable by paying Low. Low validly assigned all her rights against Liberty Realty exclusively to Commission Express. Exhibit 3 at ¶ 2 of Plaintiff's Opposition and Countermotion for Summary Judgment ("THIS ASSIGNMENT IS IRREVOCABLE AND EXCLUSIVE."). Therefore, all benefits that accrued to Low through her dealings with Liberty Realty were assigned to Commission Express, and Commission Express had the exclusive right to stand in the shoes of Low as against Liberty Realty. In the absence of any subsequent agreement to the contrary between Liberty Realty and Commission Express, the only way that Liberty Realty could discharge its obligation to pay on the Account Receivable was to pay the proceeds of the Account Receivable to Commission Express directly, in accordance with the provisions of the Notice of Assignment. See NRS 104.9406; Exhibit 3 at ¶ 4 of Plaintiff's Opposition and Countermotion for Summary Judgment. Liberty Realty's arguments below for summary judgment on Commission Express's claims for breach of the implied covenant of good faith and fair dealing and for third party breach of contract fail because under NRS chapter 104, the Notice of Assignment was sufficient to obligate Liberty Realty to pay the proceeds of the Account Receivable directly to Commission Express. Therefore, Liberty Realty's Motion for Summary Judgment against Commission Express on its claims for breach of the implied covenant of good faith and fair dealing and for third party breach of contract should be denied. 92•,2_3 11705.2 Page of 14
  • 15. (Page 15 of 19) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8ONNE8 & Rr•R,• LasVegas, Nev• 8g109 Liberty Realty also argued that because Commission Express did not confer any benefit on Liberty Realty, Liberty Realty cannot be liable for unjust enrichment. See Defendant's Motion for Summary Judgment at 14. Liberty Realty cited the Nevada Supreme Court ease of Leasepartners Corp. v. Robert T. Brooks Trust, 113 Nev. 747, 942 P.2d 182 (1997), in support of its position. Id. In Leasepartners, the Court stated that unjust enrichment occurs whenever a person has and retains a benefit that in equity and good conscience belongs to another. Id. Liberty Realty, by refusing to pay the proceeds of the Account Receivable, has retained a benefit that in equity belongs to Commission Express. Construing the facts in the light most favorable to the non-moving party, summary judgment cannot be granted to Liberty Realty against Commission Express on its claim for unjust enrichment. See Parman v. Petricciani, 70 Nev. 427, 272 P.2d 492 (1954). 6. Bell Acted As Liberty Realty's Agent. Liberty Realty also made the argument that Bell did not have authority to bind it on the Notice of Assignment. See Defendant's Motion for Summary Judgment at 9. However, Nevada's laws of agency belie this argument. NRS 104.1103 provides, "Unless displaced by the particular provisions of this chapter, the principles of law and equity, including.., principal and agent, estoppel, fraud, misrepresentation or other validating or invalidating cause shall supplement its provisions." In the instant ease, Bell had apparent authority to sign the Notice of Assignment on behalf of Liberty Realty. See Great American Ins. Co. v. General Builders, Inc., 113 Nev. 346, 934 P.2d 257 (1997). 7. The Assignment Does Not Violate NRS Chapter 104. Liberty Realty asserted below that the Assignment violates the terms of the Independent Contractor Agreement ("ICA") between Low and Liberty Realty. See Defendant's Reply To Opposition To Motion For Summary Judgment And Opposition To Plaintiff's Countermotion 92552_3 11705.• Page 12 of 14
  • 16. (Page 16 of 19) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 L•u•V•I•, N•'•d• 8•109 For Summary Judgment at 9. Specifically, Liberty Realty first argued that Low violated the term of the ICA that states, "Agent shall not have authority to bind the Broker by any promises or representations, nor commit Broker to any expense whatsoever." See id. However, Low has not bound Liberty Realty in any additional ways by selling her right to receive the proceeds of her Account Receivable to which Low was already entitled. Liberty Realty was already bound to pay a commission to Low; Low is entitled to sell her rights, title and interests in property that she has a right to receive. See Dr. Miles Medical Co. v. John D. Park & Sons, Co., 220 U.S. 373,383 (1911) ("The right of alienation is one of the essential incidents of a right of general property in movables, and restraints upon alienation have been generally regarded as obnoxious to public policy, which is best subserved by great freedom of traffic in such things as pass from hand to hand."); 8A Anderson On The Uniform Commercial Code § 9- 102:1.5, PEB Commentary No. 14 (stating that no provision of Article 9 is intended to prevent the transfer of ownership of accounts or chattel paper). The Assignment does nothing except to direct Liberty Realty to pay the proceeds of the Account Receivable, which it already owed, to Low's assignor. Therefore, Low has not violated the ICA. Liberty Realty next argued below that Low violated the term of the ICA that states, "Agent shall abide by the code of Ethics and By-Laws of the Greater Las Vegas Association of Realtors, and will not violate any statute, ordinance or regulation applicable to the conduct of the real estate brokerage business." See id. Liberty Realty did not explain how the Assignment potentially violates "the code of Ethics and By-Laws of the Greater Las Vegas Association of Realtors." As discussed above and in Plaintiff's Opposition To Defendant's Motion For Summary Judgment And Countermotion For Summary Judgment, the Assignment does not violate any statutes. Lastly, Liberty Realty argued that the Assignment violated NRS 104.9406 because the Page 13 of 14
  • 17. (Page 17 of 19) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BON.•[R & RENSHAW Las Vegas, Nev'• 891(•e Notice of Assignment did not reasonably identify the rights assigned. The Notice of Assignment is perfectly clear on this point and states, PLEASE TAKE NOTICE that the Agent is entitled to a commission (account receivable) of $7,180 without effect of deduction at this point in time under the above referenced ratified contract [sale agreement of 6369 Lookout Mountain Dr. between Randall & Donna Whitt and Katherine & David Rose] pursuant to Agent's Independent Contract Agreement which account receivable has been irrevocably sold and assigned solely to: COMMISSION EXPRESS (CE). See Exhibit 3 Countermotion For Summary Judgment. 104.9406. IV. of Plaintiff's Opposition To Defendant's Motion For Summary Judgment And Therefore, the Assignment does not violate NRS Conclusion UCC Article 9, codified in Nevada as NRS chapter 104, is the controlling law. Liberty Realty owed an obligation to pay Low $7,180.00 in commission for settlement of the underlying real estate. Commission Express validly purchased all rights and interests in Low's Account Receivable at a discount. Commission Express perfected its rights by filing the appropriate financing papers under UCC Article 1. Liberty Realty authenticated a Notice of Assignment, directing it to make all payments due to Low directly to Commission Express. Liberty Realty has failed to fulfill its obligations to pay on the Account Receivable and the Notice of Assignment. Therefore, the justice court erred as a matter of law by granting Liberty Realty's Motion for Summary Judgment. Commission Express respectfully requests that this Court reverse the decision of the justice court below. 92552_3 '•705.2 Page 14 of 14
  • 18. (Page 18 of 19) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Ku •MPFER BeNNI-'R & REh•H•W 3800 I-I¢•¢a•11-h•l•s Patl•y La$ Vegas. •m 8910• ATTORNEY'S CERTIFICATE OF COMPLIANCE I certify that have read this appellate brief, and to the best of my knowledge, information, and belief, it is not frivolous or interposed for any improper purpose. I further certify that this Brief complies with all applicable Nevada Rules of Appellate Procedure. I understand may be subject to sanctions in the event that the accompanying Brief is not in conformity with the requirements of the Nevada Rules of Appellate Procedure. DATED this • "•'day of June, 2003. KUMMER KAEMPFER BONNER & RENSHAW BY: THOMAS F. KUMMER" Nevada Bar No. 01200 SHERI ANN FORBES Nevada Bar No. 07337 Seventh Floor 3800 Howard Hughes Parkway Las Vegas, Nevada 89109 Attorneys for Plaintiff S&B Associates LLC dba Commission Express 92552_3 •705.2 Page 15 of 14
  • 19. (Page 19 of 19) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 K•I•R CERTIFICATE OF MAILING Pursuant to NRCP 5(b), I hereby certify that service of the foregoing APPELLANT'S OPENING BRIEF was made this date by depositing a tree copy of the same for mailing at Las Vegas, Nevada, addressed to: Deborah L. Elsasser, Esq. THORNDAL, ARMSTRONG, DELK, BALKENBUSH & EISINGER 1100 E. Bridger Avenue P.O. Drawer 2070 Las Vega.s, NV 89125-2070 Attorneys for Defendant Liberty Realty DATED this •day of June, 2003. ompfo Z' 92552_3 11705.2 Page 16 of 14
  • 20. FOR A PICKUP CALL 1-800-225-5345 OR GO TO WWW.DHL.COM Sender: Name Date Company Street City State ZIP Code Phone Ref. # Middletown-GWA Receiver: Xerox Green World Alliance 6500 State Route 63 Middletown, OH PIECES 1 ZIP CODE 45044 GDS GGGGGGGGGGGGGGG Shipment No. A68235893821 EZ RETURN ROUTING