Rhodes v. Designer Distribution Servs., LLC
| Decision Date | 24 February 2012 |
| Docket Number | 56615.,Nos. 55522,s. 55522 |
| Citation | 381 P.3d 655 (Table) |
| Parties | Dusty RHODES, Appellant, v. DESIGNER DISTRIBUTION SERVICES, LLC, A Nevada Limited Liability Company and Movers Pak–Man, Inc., A California Corporation, Respondents. Dusty Rhodes, Appellant, v. Designer Distribution Services, LLC, and Movers Pak–Man, Inc., Respondents. |
| Court | Nevada Supreme Court |
These are consolidated appeals from a district court judgment in a contract and tort action and a post-judgment order awarding attorney fees and costs. Eighth Judicial District Court, Clark County; Mark R. Denton, Judge.
Appellant Dusty Rhodes entered into an agreement with respondent Designer Distribution Services, LLC (DDS) whereby DDS, working with respondent Movers Pak–Man, Inc. (MPM), was to ship Rhodes's household belongings from Las Vegas to Hawaii. DDS picked up Rhodes's property after Rhodes signed a credit card authorization with DDS and a letter of acceptance with MPM. However, Rhodes's property weighed more than was originally estimated. As a result, DDS contacted Rhodes to arrange for full payment by requesting that he sign a credit card authorization for the remaining balance. Rhodes submitted an authorization with an inserted provision that required delivery of Rhodes's belongings by a specific date. A specific delivery date was contrary to the letter of acceptance, and because Rhodes failed to provide a credit card authorization based on the original terms, DDS refused to ship Rhodes's property. Rhodes's property remained in DDS's storage and he did not seek to reclaim it.
Rhodes sued DDS and MPM (collectively DDS unless otherwise specified). DDS filed a counterclaim for breach of contract, breach of covenant of good faith and fair dealing, and unjust enrichment. DDS later filed summary judgment motions against Rhodes on his claims for fraud, misrepresentation, unjust enrichment, civil conspiracy, conversion, and request for specific performance and injunctive relief. The district court entered summary judgment against Rhodes on his claims for unjust enrichment, conversion, and request for injunction and specific performance. DDS then filed a partial summary judgment motion against Rhodes on his 49 U.S.C. § 14704 claim. DDS also filed a motion to dismiss Rhodes's remaining state law claims. The district court granted partial summary judgment against Rhodes on his 49 U.S.C. § 14704 claim. The district court dismissed Rhodes's remaining state law claims as preempted by the federal Carmack Amendment.
Following the district court's dismissal of Rhodes's remaining state law claims, Rhodes filed a motion to dismiss DDS's counterclaims. In response, DDS filed a countermotion for summary judgment on all of its counterclaims. Rhodes then filed for summary judgment on DDS's counterclaims as well. The district court granted summary judgment against Rhodes on DDS's counterclaims. After the district court's grant of summary judgment on DDS's counterclaims, DDS filed a motion for attorney fees and costs. The district court granted the motion for attorney fees and costs as well.
Rhodes now argues on appeal that the district court erred in (1) granting DDS summary judgment on Rhodes's claims for unjust enrichment, conversion, specific performance and injunctive relief, violations of the Carmack Amendment, and DDS's counterclaims; (2) granting DDS's motion to dismiss Rhodes's remaining state law claims; and (3) granting DDS's motion for attorney fees and costs.1 The parties are familiar with the facts, and we do not recount them further except as is necessary for our disposition.
Standard of review
Statutory construction and unambiguous contractual construction are questions of law reviewed de novo. State, Dep't of Taxation v.. DaimlerChrysler, 121 Nev. 541, 543, 119 P.3d 135, 136 (2005) ; Ellison v.C.S.A.A., 106 Nev. 601, 603, 797 P.2d 975, 977 (1990).
A district court's grant of summary judgment is reviewed de novo and without deference to the district court's findings. Wood v. Safeway, Inc., 121 Nev. 724, 729, 121 P.3d 1026, 1029 (2005). Summary judgment is proper if, viewing the evidence in the light most favorable to the nonmoving party, there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Id. The party opposing a motion for summary judgment must set forth specific facts demonstrating the existence of a genuine factual issue. Id. at 731, 121 P.3d at 1030–31. “[T]he evidence, and any reasonable inferences drawn from it, must be viewed in a light most favorable to the nonmoving party.” Id. at 729, 121 P.3d at 1029.
The district court erred by granting DPS summary judgment on Rhodes's claim that DPS violated 49 U.S.C. § 14704
Rhodes argues that the district court erred in its interpretation of 49 U.S.C. § 14704 and 49 U.S.C. § 14706's “actual loss” requirement because Rhodes was entitled to damages for non-delivery. We agree.
The Carmack Amendment was first enacted in 1906 as an amendment to the Interstate Commerce Act and has been altered and recodified over the last century. Kawasaki Kisen Kaisha Ltd. v. Regal–Beloit Corp., 561 U.S. ––––, ––––, 130 S.Ct. 2433, 2440 (2010). The Carmack Amendment imposes liability on an interstate carrier “for the actual loss or injury to the property” that the carrier agrees to transport. Id. at ––––, 130 S.Ct. at 2441 (citing 49 U.S.C. §§ 11706, 14706 ). 49 U.S.C. § 14706(a) imposes liability on motor carriers “for the actual loss or injury to the property.” 49 U.S.C. § 14706(a) (2006).
Liability may be imposed on a “carrier for all reasonably foreseeable consequential damages resulting from a breach of the contract of carriage, including those resulting from nondelivery of the shipped goods” such as “loss, damage, or delay arising out of the contract to transport the goods.” Air Products & Chemicals v.. Ill. Cent. Gulf R.R., 721 F.2d 483, 485–86 (5th Cir.1983) (citing N.Y. & Norfolk R.R. v. Peninsula Exch., 240 U.S. 34, 37–38 (1915) ). Rhodes notes that the “Carmack Amendment is the exclusive cause of action for contract claims alleging delay, loss, failure to deliver or damage to property.” Hall v. North American Van Lines, Inc., 476 F.3d 683, 688 (9th Cir.2007) ). Rhodes asserts that there were substantial foreseeable damages after DDS took possession of his property, held the property hostage, and refused to deliver the property by the date Rhodes specified.
Rhodes presented evidence demonstrating that the nondelivery of his goods resulted in a loss of business opportunities, the depreciation in value of the non-delivered goods, and costs associated with the replacement of his property. Because this evidence demonstrates that Rhodes may have experienced consequential damages as a result of DDS's non-delivery, we conclude that there are genuine issues of material fact regarding the damages that Rhodes suffered. Therefore, the district court erred in entering summary judgment against Rhodes on his Carmack Amendment claim.
The district court properly granted DPS summary judgment on Rhodes's claims for unjust enrichment, conversion, and request for specific performance and an injunction
Rhodes argues that the district court erred in granting DDS summary judgment on Rhodes's claims for unjust enrichment, conversion, and request for specific performance and an injunction. We disagree.
The district court properly granted DDS summary judgment on Rhodes's unjust enrichment claim
“ ‘[U]njust enrichment or recovery [under] quasi-contract [principles] applies to situations where there is no legal contract but where the person sought to be charged is in possession of money or property which in good conscience and justice [should not be retained].’ “ LeasePartners Corp. v. Brooks Trust, 113 Nev. 747, 756, 942 P.2d 182, 187 (1997) (quoting 66 Am.Jur.2d Restitution § 11 (1973) ). “An action based on a theory of unjust enrichment is not available when there is an express, written contract, because no agreement can be implied when there is an express agreement.” LeasePartners Corp. v. Brooks Trust, 113 Nev. 747, 755, 942 P.2d 182, 187 (1997).
Because Rhodes's unjust enrichment claim was based on the same subject matter as the express contract and was not separate and distinct, we conclude that the district court properly granted summary judgment for DDS on the unjust enrichment claim. See Lipshie v. Tracy Investment Co., 39 Nev. 370, 379, 566 P.2d 819, 824 (1977) (); LeasePartners, 113 Nev. at 756, 942 P.2d at 187.
The district court properly granted DDS summary judgment on Rhodes's conversion claim
“Conversion is ‘a distinct act of dominion wrongfully exerted over another's personal property in denial of, or inconsistent with [that person's] title or rights [to the property].’ “ Evans v. Dean Witter Reynolds, Inc., 116 Nev. 598, 606, 5 P.3d 1043, 1048 (2000) (quoting Wantz v. Redfield, 74 Nev. 196, 198, 326 P.2d 413, 414 (1958) ). Conversions are divided between four classes: (1) wrongful taking, (2) alleged assumption of ownership, (3) illegal user or misuser, and (4) wrongful detention. Robinson M. Co. v. Riepe, 40 Nev. 121, 129, 161 P. 304, 305 (1916). Only wrongful detention requires proof of a demand and refusal. Id.
Rhodes argues that the district court failed to acknowledge that DDS was holding Rhodes's property hostage for seventeen months, which Rhodes asserts amounts to conversion. Yet, Rhodes cannot demonstrate that his property was wrongfully taken or that he made a demand for his property. DDS also offered Rhodes the opportunity to retrieve his property and suggests that Rhodes could have sought a writ of restitution. Rhodes fails to demonstrate a genuine issue of material fact regarding the existence of a conversion claim and fails to demonstrate that the district...
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