RICHARD F. BOULWARE, II, District Judge.
This case involves allegations against various state officials arising out of an alleged conspiracy to prosecute Plaintiff Thomas Vail and cause him to lose his insurance broker's license. After two orders from the Court at the motion to dismiss stage, the only remaining Defendant in this case is John Arana.
The Court notes that Vail did not file a response to Arana's Motion for Summary Judgment. In his reply brief, Arana requests that the Court grant summary judgment in his favor based on this failure to respond. Arana cites Local Rule of Practice 7-2(d), which states that "[t]he failure of an opposing party to file points and authorities in response to any motion shall constitute a consent to the granting of the motion." However, a party's mere failure to respond is not grounds for granting a motion for summary judgment. "[A] nonmoving party's failure to comply with local rules does not excuse the moving party's affirmative duty under Rule 56 to demonstrate its entitlement to judgment as a matter of law. Fed. R. Civ. P. 56. Short of that, we turn the summary judgment rule into a mere sanction for noncompliance with local rules."
However, an opposing party's failure to respond does permit the Court to consider the moving party's assertions of fact as undisputed for purposes of the motion, and to "grant summary judgment if the motion and supporting materials—including the facts considered undisputed—show that the movant is entitled to it." Fed. R. Civ. P. 56(e)(2)-(3);
The Court finds the following facts to be undisputed. Plaintiff Thomas Vail was licensed by the Nevada Division of Insurance as a resident producer. Compl. & App. for Order to Show Cause at 1, Mot. Summ. J. Ex. 2, ECF No. 63-2 ("Insurance Compl."). In 2007 and 2008, Vail was operating a business called Anthem Financial Group. Aff. of John Arana ¶ 6, Mot. Summ. J. Ex. 3 ("Arana Aff."). In late 2007 and early 2008, the Nevada Secretary of State initiated an investigation into Vail and his company's sale of certificates of deposit that were neither FDIC-insured nor registered as securities.
On April 20, 2009, Vail pled guilty to one felony count of fraudulent sale of securities to a person over the age of sixty, a Category B Felony. Guilty Plea Agreement, Mot. Summ. J. Ex.
4. Vail was subsequently convicted of that count and sentenced to 12 to 30 months of imprisonment, but his sentence was suspended and he was placed on three years' probation. Judgment of Conviction, Mot. Summ. J. Ex. 5. Vail's conviction has not been overturned, set aside, invalidated, or otherwise called into question. Pl.'s Resp. to Requests for Admission No. 2, Mot. Summ. J. Ex. 6.
On October 8, 2009, the Nevada Division of Insurance issued a Complaint and Application for Order to Show Cause why Vail's resident producer license should not be revoked pursuant to N.R.S. 683A.451(6) due to his felony conviction. Insurance Compl. at 3. The show cause hearing was held on December 22, 2009, and the Nevada Commissioner of Insurance issued an order on January 21, 2010 adopting the recommendations of the hearing officer and ordering that Vail's insurance license be immediately suspended. Order of Comm'r, Mot. Summ. J. Ex. 11. Vail then sought a waiver under 18 U.S.C. § 1033 to continue to sell insurance despite his felony conviction. Denial of App. for Waiver, Mot. Summ. J. Ex. 12. Vail's waiver application was denied on June 1, 2010, and his license, which had been suspended since January 21, 2010, was revoked effective May 26, 2010.
Arana did not discuss his investigation of Vail with the Division of Insurance during that investigation, but he may have, as a matter of standard practice, notified the Division of Vail's guilty plea. Arana Aff. ¶ 12. Until Vail brought this lawsuit, Arana was not aware that the Division of Insurance had instituted any proceedings against Vail to suspend or revoke his license.
Vail filed the Complaint in this action in Nevada state court on May 29, 2012. Pet. for Removal Ex. 1, ECF No. 1. In his Complaint, Vail named as defendants Attorney General Catherine Cortez Masto, Chief Deputy Attorney General Conrad Hafen, Secretary of State Ross Miller, Investigator John Arana, Insurance Commissioner Scott Kipper, and Chief Insurance Counsel Amy Parks. Vail alleged that Defendants intentionally conspired to have him wrongfully convicted and to wrongfully cause him to lose his insurance license. The Complaint asserts causes of action for civil conspiracy, violation of due process, and intentional infliction of emotional distress. Defendants filed three separate motions to dismiss.
On February 15, 2013, the Court granted in part and denied in part Defendants' motions to dismiss. Order, ECF No. 34. In its Order, the Court found that Vail's claims relating to the validity of his conviction are barred by the doctrine of
Each of the remaining Defendants then filed motions for reconsideration of the Court's ruling on March 15, 2013. ECF Nos. 35, 36. The Court held a hearing on the motions on April 29, 2013. Minutes of Proceedings, ECF No. 40. At the hearing, counsel for Vail clarified that Vail's remaining claim was a federal conspiracy claim under 42 U.S.C. § 1983 rather than a state law conspiracy claim. Tr. of Hrg. at 4:14-20, ECF No. 62. The Court granted the motions for reconsideration with respect to Miller, Masto, and Hafen and dismissed Vail's remaining civil conspiracy claims alleged against them.
Following the Court's Order on reconsideration, the only remaining Defendant in this case is John Arana. The only remaining claim against him is Vail's civil conspiracy claim, which is premised on the theory that Arana conspired to wrongfully deprive Vail of his insurance license.
On September 30, 2015, the Court granted Arana's Motion for Summary Judgment and stated that a written order would issue. Minute Order in Chambers, ECF No. 67. This Order sets forth the Court's reasoning for its ruling.
Summary judgment is appropriate when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show "that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a);
Where the party seeking summary judgment does not have the ultimate burden of persuasion at trial, it "has both the initial burden of production and the ultimate burden of persuasion on a motion for summary judgment."
After reviewing Arana's motion and supporting exhibits, the Court concludes that summary judgment must be granted in his favor on the sole remaining claim in this case. Vail's civil conspiracy claim is barred by
In his motion, Arana argues that Vail's civil conspiracy claim is barred by the doctrine of
In
The Court agrees with Arana that a judgment in favor of Vail would necessarily imply the invalidity of his criminal conviction. A review of the Nevada Division of Insurance's decision to suspend Vail's license shows that this decision was made primarily based on the fact that Vail was convicted of a felony. If Vail were able to prove that this deprivation of his license was improper or wrongful, it would necessarily imply that the underlying conviction was also wrongful. As Vail has not shown that his conviction has been reversed, expunged, invalidated, or otherwise called into question, this claim is therefore barred by
Arana also argues in his motion that Vail cannot produce any evidence to support his civil conspiracy claim. The Court agrees, and finds that even if this claim were not
"A civil conspiracy is a combination of two or more persons who, by some concerted action, intend to accomplish some unlawful objective for the purpose of harming another which results in damage."
Here, Vail has presented no evidence that Arana entered into an agreement or "meeting of the minds" with any other individual or that Arana ever intended to violate Vail's constitutional rights. There is simply no evidence in the record supporting Vail's allegation that Arana conspired or intended to deprive Vail of his insurance license or any other right that may be secured by the Constitution, nor is there any evidence from which a reasonable factfinder could infer that Arana conspired to do so. Arana has therefore met his initial burden under
For the reasons discussed above,