Rock Bay, LLC v. Dist. Court

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Judgment creditors obtained judgments in Florida against Jeffrey Kirsch and various entities he created (collectively, judgment debtors). Kirsch also created Rock Bay, a Nevada company. After the Florida litigation began, a series of monetary transfers occurred between Rock Bay and the judgment debtors. When the judgment creditors were unsuccessful in executing their judgments on the judgment debtors' assets, they domesticated the Florida judgments in Nevada. Kirsch voluntarily dissolved Rock Bay one week later. The judgment creditors then served a subpoena on a Las Vegas accounting firm that performed accounting services for the judgment debtors and Rock Bay, seeking records related to the judgment debtors and Rock Bay. Rock Bay unsuccessfully moved to quash the subpoena on the ground that it was not a party to the underlying litigation. The Supreme Court found the district court did not exceed its authority over Rock Bay, holding that discovery of a nonparty's assets under Nev. R. Civ. P. 69(a) is not permissible absent special circumstances, including those in which the relationship between the judgment debtor and the nonparty raises reasonable suspicion as to the good faith of asset transfers between the two, or in which the nonparty is the alter ego of the judgment debtor. View "Rock Bay, LLC v. Dist. Court" on Justia Law