Thursday, Feb. 10, 2011 | 4:39 p.m.
CARS0N CITY – The Nevada Supreme Court has returned to district court in Las Vegas a lawsuit in which a Texas corporation maintains it was taken for $600,000 in a sports-horse racing scheme in the country of Peru.
The court directed District Judge Valorie Vega to do more study on whether Tuxedo International Inc., the Texas company, was restricted to only bringing the suit in Peru or whether it could be pursued in Las Vegas.
Michael Rosenberg, a California resident, told Tuxedo that he and his partners directly or indirectly owned about 400 slot machine casinos in Peru. He pushed a plan to install sports and race book technology betting in them.
After 11 meetings in Las Vegas, Tuxedo decided to invest in the venture. The memorandum of understanding between Tuxedo and Rosenberg had a clause that any dispute would be submitted to arbitration in Peru. There were also several other parts of the contract that mentioned Peru.
Tuxedo alleges Rosenberg never owned the casinos and the project never got off the ground. It filed suit in Las Vegas alleging theft-conversion by fraud and unjust enrichment against Rosenberg, who maintained the legal action could only be brought in Peru.
Vega agreed with Rosenberg and dismissed the suit, but the Supreme Court said Vega must do more study. The court said Vega must focus on the intention of the parties and if they were locked into any suit in Peru.
The court said Tuxedo still has the burden to demonstrate that the contract didn't limit suits to the country of Peru.
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