T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T N EW A M STERD A M PRO J ECT MANA GE ME NT HU MANI T AR I AN F O U N D A T I O N , aD u tc h n o n - p r o f it c orpor a t i on, P la in tif

f - A p p e lla n t, v. K E L L Y L A U G H R I N , a n in d iv id u a l; C AMP B E L L , WAR B UR T ON , FI TZ SI M M ON S, SM I TH, M ENDELL & P A S T O R E , a C al i forni a profes si on al c orpor a t i on, D efen d an t s - A p p el l ees. N o. 09- 16357 D . C . N o . 5 : 0 7 -cv -0 0 9 3 5 -JF ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e N o rth e rn D is tr ic t o f C a lif o rn ia J e r e m y D . F oge l , D i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d O c t obe r7, 2010 S a n F r a n c is c o , C a lif

o rn ia B efo re: T H O M P S O N , S IL V E R M A N an d M cK E O W N , C i rcu i tJu d g es. 

# FI LED OC T 21 2010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALSB e c au s e th e p a rt i e s a r e f a m i l i a rwi th th e f

a c t s a n d p r o c e d u r a l h i s t o ry , we 1 do notr e s t a t e the m he r e e xc e pta s ne c e s s a ry t o e xpl a i n ourdi s pos i t i on.

- 2- P l ai nt i ff -app el l antN ew A m st er dam P roj ec tM anagem entH um ani t ar i an F o u n d a tio n ( “N A F ” ) ap p e a ls th e d is tr ic t c o u rt’s g r a n t o f s u m m a ry ju d g m e n t in f a vorof the appe l l e e s f

i ndi ng N A F ’ s c onve r s i on, c om m on c ount , a nd r e s t i tut i on c la im s to b e tim e - b a rr e d . N A F a r g u e s th a t ap p e lle e K e lly L au g h r in ’s f a ilu r e to d is c lo s e h e rr e c e ip t o f

$ 2 0 0 ,0 0 0 , c o u p le d w ith h e rs ta te m e n t th a t “[ t]h e r e is n o th in g e ls e to r e p o rt,” a m o u n te d to f r au d u le n t c o n c e a lm e n t a n d e f f e c tiv e ly

“ l ul l e d” N A F i nt o i na c t i on. W e ha ve j ur i s di c t i on pur s ua ntt o 28 U . S . C . § 1291, a nd w e a f f i rm. 1 T he f r audul e ntc onc e a l m e ntdoc tr i ne “ doe s notc om e i nt o pl a y , w ha t e ve rthe l e ngths t o w hi c h ade f

e nda ntha s gone t o c onc e a l the w r ongs , i f apl a i nt i f

f i s on no t i ce of a pot ent i al cl ai m . ” Sn ap p & A ss ocs. Ins. Servs. , Inc. v. M alcolm B ruce B ur l i ngam e R obe r t

s on , 96 C al . A pp . 4th 8 84 , 89 0-91 (200 2) (c i t at i on and i nt ernal q u o ta tio n m a rk s o m itte d ) ; a cco rd B ern so n v. B ro w n i n g -Ferris In du s. , 7 C a l. 4 th 926, 931 ( 1994) ( c onc l udi ng tha tt ol l i ng w a s a va i l abl e “ ‘ onl y f ortha tpe r i od dur i ng w hi c h the c l a i m i s undi s c ove r e d by pl a i nt i f f orunt i l s uc h t i m e a s pl a i nt i f f , by the exer ci se of re as on abl e di l i gence, shou l d h ave di sc ov er ed i t ’ ” ( ci t at i on om i tt ed)) . O nc e the pl a i nt i f

f s us pe c t s w r ongdoi ng, a nd the r e f or e ha s a n i nc e nt i ve t o s ue , “ s he- 3-

m ustdeci de w hether t o fi l e s ui tor si ton her r i gh t s. ” J ol l y v . E l iL i l l

y & C o. , 44 C a l . 3d 1103, 1111 ( 1988) . “ S o l ong a s as us pi c i on e xi s t s , i ti s c l e a rtha tthe pl ai nt i ff m ustgo fi nd the fa ct s; she c anno tw ai tfor the fa ct s t o fi nd her. ” I d. I n the pr e s e ntc a s e , e ve n i f the r e w a s f

r audul e ntc onc e a l m e nt , N A F w a s on i nq ui ryno t i ce of i t s c l ai m s a gai nstthe appel l ee s by 200 3 atthe l at es t , w hen i tkn ew of the unde r l y i ng c onve r s i on a nd kne w tha tthe appe l l e e l a w f i rm r e c e i ve d s o me port i on of

the c onve rt e d f

unds . T he f

a c ttha tN A F w a s nota w a r e of the f ul l e xt e nt o f th e ap p e lle e s ’ p a rtic ip a tio n is n o t d is p o s itiv e . T h e g e n e r a l ru le in C a lif o rn iais tha t“ i gnor a nc e of

the i de nt i ty of

the de f e nda nti s note s s e nt i a l t o ac l a i m a nd there fore w i l l no tt ol l the st atut e [ of l i m i t at i on s] . ” B e rns on , 7 C a l . 4th a t932 (c i t at i on s om i tt ed). O nce the pl ai nt i ff i s aw ar e of “ a defe nd ant , ” he c an fi l e a tim e ly c o m p la in t n a m in g D o e d e f e n d a n ts a n d c a n th e n u tiliz e th e a v a ilab le d is c o v e ry to o ls to id e n tif y a n d s e rv e a n y D o e d e f e n d a n ts w ith in th e ap p lic ab le th r e e - y e a rs ta tu te o f

lim ita tio n s . I

d. a t 9 3 2 - 3 3 . A c c o r d in g ly , th e d is tr ic t c o u rt d id note rrw he n i tc onc l ude d tha tN A F c oul d ha ve f i l e d ac om pl a i ntna m i ng D oe d e f e n d a n ts to a s c e rta in th e e x te n t o f th e ap p e lle e s ’ r o le in th e c o n v e r s io n . M oreover, N A F coul d h ave pursued other a venu es thatw ou l d h ave a l l ow ed i tt o tr a c e th e mo n e y t o th e ap p e l l e e s . Th e r e i s n o d i s p u t e th a tN A F k n e w th e U . S. B a n ka c c o u n t in to w h ic h its c o n v e rte d f u n d s w e r e in itia lly d e p o s ite d . H a v in g th is- 4-

in f o rm a tio n , N A F c o u ld h a v e s o u g h t to s u b p o e n ath e b a n kr e c o r d s , w h ic h w o u ld h a v e a l l o w e d i tt o tr a c e th e mo n e y t o th e l a w f i rm a n d t o K e l l y Lau g h r i n . N A F, how e ve r , ha s pr ovi de d no e vi de nc e t o de m ons tr a t e e i the rtha ti ttr i e d t o s ubpoe na th o s e r e c o r d s o rth a t s u c h a n a tte m p t w o u ld h a v e b e e n u n s u c c e s s f u l. A c c or di ngl y , be c aus e N A F w a s on not i c e of the pot e nt i a l c l a i m a ga i ns tthe appe l l e e s by 2003 a tthe l a t e s t , a nd be c aus e i tc oul d ha ve e i the rs oughtt o s ubpoe na the ba nk r e c or ds f

r om U . S . B a nk orna m e d D oe de f e nda nt s i n the a l r e a dy - pe ndi ng l a w s ui ta ga i ns tM a r ga r e tL aughr i n, the di s tr i c tc ourtdi d note rri n f i ndi ng tha tthe th r e e - y e a rs ta tu te o f

lim ita tio n s b e g a n to ru n in 2 0 0 3 . See C AL . C IV . P ROC . C OD E § 338( c ) . A l l of

N A F ’ s c l a i m s a r e the r e f or e t i m e - ba rr e d. AF F I RME D.