By Jerry Carter.  In an Order dated August 9, 2012, the Washoe County Business Court stated that it will decide a dispute regarding control of a Nevada corporation even though one of the parties to the dispute is a California resident.  Two primary factors influenced the Court’s decision.  First, the California resident is alleged to have “participated” with other defendants in filing a list of officers and directors naming himself as a director.  Second, the lawsuit seeks declaratory relief as to whether the California resident is a proper director of the corporation.  Thus, the Court stated that it is consistent with due process for the dispute to be decided in Nevada.

Ordinarily, a Nevada court will not exercise jurisdiction over a resident of another state in the absence of evidence, as opposed to allegations, that the non-resident defendant purposefully engaged in activities bringing the non-resident in contact with Nevada.  Here, the reason the Business Court’s decision makes sense is that the parties have a dispute over a Nevada asset, i.e., control of a Nevada corporation.  If an individual desires to assert control over a Nevada corporation, it is reasonable to require him or her to come to Nevada to make his or her case.