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Harrah's Operating Company10/31/2003
Petitioners Harrah's Entertainment, Inc. (HEI), Harrah's Operating Company, Inc. (HOC), and Rio Properties, Inc. (RPI), (collectively Petitioners) seek a writ of mandate compelling the trial court to vacate its order denying their motion to quash service of summons for lack of personal jurisdiction. Real parties in interest Gregory Porter and Renee Porter (the Porters) sued HEI, HOC, and RPI in Orange County Superior Court, alleging injuries caused by an elevator accident at the Rio All-Suite Hotel & Casino in Las Vegas, Nevada.
We conclude HEI is subject to general personal jurisdiction in California based on HEI's own press release announcing HEI operates and manages an Indian gaming casino near San Diego and has entered into a partnership with the Rincon San Luiseño Band of Mission Indians for operating the casino. Petitioners did not object to the admission of the press release. They submitted no evidence to support their contention a company called HCAL, Inc., actually operates and manages the casino. Operating and managing an Indian gaming casino are sufficient minimum contacts to support general personal jurisdiction over HEI in California. We therefore deny the writ petition as to HEI.
We conclude, however, HOC and RPI are not subject to personal jurisdiction in California based on the record. The Porters contend HOC and RPI are subject to general personal jurisdiction in California based on claims that (1) HEI conducts all of its gaming business, including the operation of the Indian gaming casino near San Diego, through HOC and (2) HOC and RPI are HEI's alter egos. The evidence was insufficient to support those claims, and the Porters do not contend HOC or RPI is subject to specific personal jurisdiction. We therefore grant the writ petition as to HOC and RPI and direct the trial court to vacate its order denying the motion to quash service of summons as to those two parties.
Facts and Proceedings in the Trial Court
Gregory J. Porter, a California resident, alleged he suffered serious injuries as a result of an elevator malfunction at the Rio All-Suite Hotel & Casino (the Rio Hotel) in Las Vegas, Nevada. Porter was a registered guest of the Rio Hotel at the time of the mishap. Porter and his wife Renee sued HOC, HEI, and RPI for personal injury and loss of consortium.
HOC and HEI are incorporated in the State of Delaware and have their principal places of business in the State of Nevada. HOC is a wholly owned subsidiary of HEI. HOC is registered to do business in California and has an agent for service of process in this state.
RPI is incorporated and has its principal place of business in the State of Nevada. RPI is alleged to own and operate the Rio Hotel and is alleged to be a wholly owned subsidiary of HEI.
HEI's 2001 annual report stated: " , a Delaware corporation, operates casinos in more markets in the United States than any other casino company. . . . [ ] We conduct our business through a wholly owned subsidiary, and through HOC's subsidiaries. Our principal asset is the stock of HOC, which holds directly or indirectly through subsidiaries substantially all of the assets of our businesses."
Petitioners moved to quash service of summons on the ground of lack of personal jurisdiction. In opposing the motion, the Porters submitted documentation purporting to show (1) HOC is HEI's principal asset, (2) HEI conducts its gaming business through HOC, (3) HEI and HOC are alter egos, and (4) HEI and HOC together own and operate the Rio Hotel. The Porters also submitted a press release issued by HEI dated August 8, 2002 announcing "Harrah's Entertainment Opens Southern California's F
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