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Case File Nevada

Case File Nevada

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Published by Foreclosure Fraud
4closureFraud.org
4closureFraud.org

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Categories:Types, Research, Law
Published by: Foreclosure Fraud on Jun 28, 2012
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06/28/2012

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FOX ROTHSCHILD LLP
3800 Howard Hughes ParkwaySuite 500Las Vegas, Nevada 89169
 
VG1 138970v2 06/27/12
112345678910111213141516171819202122232425262728MARK J. CONNOT (10010)KEVIN M. SUTEHALL (9437)JOHN H. GUTKE (10062)FOX ROTHSCHILD LLP3800 Howard Hughes Parkway, Suite 500Las Vegas, Nevada 89169Telephone: 702-262-6899Facsimile: 702-597-5503mconnot@foxrothschild.comksutehall@foxrothschild.com jgutke@foxrothschild.com
UNITED STATES DISTRICT COURTDISTRICT OF NEVADA
LENDER PROCESSING SERVICES, INC., aDelaware corporation,Plaintiff,v.CATHERINE CORTEZ MASTO, in herofficial capacity as Attorney General of theState of Nevada.Defendant.Case No.
COMPLAINT FOR DUE PROCESSVIOLATIONS, DECLARATORYRELIEF, AND INJUNCTIVE RELIEF
 LENDER PROCESSING SERVICES, INC., by and through its undersigned attorneys,states and alleges as follows:
INTRODUCTION
1.
 
This is an action by Plaintiff Lender Processing Services, Inc. (“Plaintiff”) againstDefendant Catherine Cortez Masto, in her official capacity as Attorney General for the State of Nevada (“Attorney General”), to obtain a judgment declaring that the Attorney General hasviolated Plaintiff’s constitutional rights and Nevada law through her hiring of private, outside,and out-of-state counsel, the law firm of Cohen Milstein Sellers & Toll PLLC (“Cohen
Case 2:12-cv-01122-JCM -PAL Document 1 Filed 06/27/12 Page 1 of 16
 
FOX ROTHSCHILD LLP
3800 Howard Hughes ParkwaySuite 500Las Vegas, Nevada 89169
 
VG1 138970v2 06/27/12
212345678910111213141516171819202122232425262728Milstein”), to act in the place of the Attorney General to conduct a state investigation of, andlitigation against, Plaintiff under Chapter 598 of the Nevada Revised Statutes, the NevadaDeceptive Practices Act (the “Act”). The investigation and litigation have been conductedpursuant to a contingency fee agreement providing for payments based solely on allegedviolations found by Cohen Milstein acting in the place of the Attorney General. By illegallydeputizing Cohen Milstein and permitting them to stand in her shoes and exercise the State’ssovereign power, not only for the State’s purposes, but also for Cohen Milstein’s own, privatebenefit and ends, the Attorney General has violated Plaintiff’s constitutional rights and Nevadalaw.2.
 
As one commentator has noted: “
 Because, unlike private litigants, the state wields potentially dominating power over private society, those exercising the state's legal power areobligated by democratic and constitutional principles, as well as the dictates of legal ethics, toassess and pursue the public interest without direct concern for personal or private gain. When private contingent fee attorneys are vested with authority to vindicate the interests of the statethrough litigation, with their compensation determined solely on the basis of the ultimate amount of damages recovered, society is presented with an ominous mixture of public power and privatemotivation, effectively leaving us with the worst of all possible worlds. Fundamental ethical principles, as well as constitutional dictates limiting state power, are threatened by such anarrangement 
.” Martin H. Redish,
Private Contingent Fee Lawyers and Public Power:Constitutional and Political Implications
, 18 Sup. Ct. Econ. Rev. 77, 77-78 (2010) (emphasisoriginal). \\\ 
Case 2:12-cv-01122-JCM -PAL Document 1 Filed 06/27/12 Page 2 of 16
 
FOX ROTHSCHILD LLP
3800 Howard Hughes ParkwaySuite 500Las Vegas, Nevada 89169
 
VG1 138970v2 06/27/12
312345678910111213141516171819202122232425262728
PARTIES
3.
 
Plaintiff Lender Processing Services, Inc. is a Delaware corporation with itsprincipal place of business at 601 Riverside Avenue, Jacksonville, Florida.4.
 
Catherine Cortez Masto is the Nevada Attorney General, an elected position in theState of Nevada, and is responsible for enforcement of certain provisions of the Nevada criminalcode as well as certain civil statutes.
JURISDICTION AND VENUE
5.
 
This action arises under the Constitution and laws of the United States and 42U.S.C. § 1983, and this Court has federal question jurisdiction over this action pursuant toArticle III of the Constitution and 28 U.S.C. §1331.6.
 
Plaintiff’s right to immediate judicial review of the Attorney General’s conduct isbased on the federal Declaratory Judgment Act, 28 U.S.C. § 2201
et seq
., and the FourteenthAmendment of the United States Constitution.7.
 
Venue is proper in this Court under 28 U.S.C. § 1391(b) and because a substantialpart of the events or omissions giving rise to the claims alleged herein occurred in the District of Nevada.
FACTUAL BACKGROUND
8.
 
On November 15, 2010, the Attorney General served a subpoena on Plaintiff pursuant to her powers under NRS 598.0963(4), which gives the Attorney General authority toissue subpoenas and conduct investigations when she has cause to believe the Act has beenviolated. Under the Act, the Attorney General may pursue civil or criminal penalties.9.
 
While the initial subpoena was signed by Ernest Figueroa, a Chief DeputyAttorney General, Plaintiff was almost immediately contacted by lawyers from Cohen Milstein
Case 2:12-cv-01122-JCM -PAL Document 1 Filed 06/27/12 Page 3 of 16

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