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Venetian Casino Resort, L.L.C. v. Lehrer McGovern Bovis, Inc.

Citation: 116 F. App'x 85Docket: No. 04-15177

Court: Court of Appeals for the Ninth Circuit; October 25, 2004; Federal Appellate Court

Narrative Opinion Summary

The case involves Venetian Casino Resort, LLC's appeal of a district court’s denial of its emergency motion to stay state court proceedings, which was affirmed by the appellate court. The core issue was whether the district court’s arbitration orders precluded state court proceedings. The state court determined that certain issues were not subject to arbitration and proceeded to trial, rendering a judgment that was later contested by Venetian. The district court held that the state court's judgment was entitled to full faith and credit under 28 U.S.C. § 1738, despite Venetian's arguments that it conflicted with federal arbitration rights. The appellate court found no violation of the Federal Arbitration Act, as arbitration was not mandated, and concluded that Venetian had sufficient remedies within the state judicial system. Consequently, the court affirmed the district court’s decision, emphasizing the adequacy of state court processes and the lack of necessity for federal intervention. The case disposition is restricted under Ninth Circuit Rule 36-3, limiting its publication and citation.

Legal Issues Addressed

Adequate Remedies in State System

Application: The court concluded that Venetian had adequate remedies available in the state system, negating the need for federal court intervention.

Reasoning: The court concluded that Venetian had adequate remedies available in the state system, thus affirming the lower court's decision without needing to consider additional grounds for affirmance proposed by LMB.

Application of the Anti-Injunction Act

Application: The district court's decision to arbitrate was not considered a final judgment under the Anti-Injunction Act, and it was not required to enjoin state proceedings.

Reasoning: The district court's determination to arbitrate was not definitively classified as a final judgment under the Anti-Injunction Act, but it was not obligated to enjoin the state proceedings.

Federal Arbitration Act and Federal Rights

Application: Venetian argued that the failure to enjoin state proceedings violated its federal rights to arbitration, but arbitration was not mandated by the Federal Arbitration Act.

Reasoning: Venetian contended that the district court’s failure to enjoin the state proceedings violated its federal rights to arbitration, but the arbitration was not mandated by the Federal Arbitration Act.

Full Faith and Credit under 28 U.S.C. § 1738

Application: The district court found that the state court's determinations were entitled to full faith and credit once a jury verdict was rendered and judgment entered.

Reasoning: The district court found that once a jury verdict was rendered and judgment entered, the state court's determinations were entitled to full faith and credit under 28 U.S.C. § 1738.