Court Opinion

ID: 2970776
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:21:36.973549+00
Date Added: 2024-06-11T13:15:08.948085
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
              3XUVXDQW WR 6L[WK &LUFXLW 5XOH                          *RRGZLQY*KHH                               1R
     (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                 )LOH 1DPH DS
                                                                      7KHPDQGDWHZLOOQRWLVVXHIRUIRXUWHHQGD\VIURPWKH
                                                                    GDWHRIWKLVRUGHU0HPEHUVRIWKHFRXUWPD\ILOHVHSDUDWH
                                                                    RSLQLRQVLIWKH\ZLVK
81,7('67$7(6&28572)$33($/6
                )257+(6,;7+&,5&8,7                                              (17(5('%<25'(52)&2857
                  BBBBBBBBBBBBBBBBB

                                                                                        V/HRQDUG*UHHQ
 s())5(< *22':,1              ;                                                   BBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
         3HWLWLRQHU$SSHOODQW                                                              &OHUN
                                
                                         1R
           Y                   
                                 !
                                
 0$5*$5(77( *+((               
          'HIHQGDQW$SSHOOHH 
                               1

                     )LOHG0D\
   %HIRUH0$57,1&KLHI&LUFXLWsXGJH%2**6
%$7&+(/'(5'$8*+75(<0225(&2/(&/$<
  *,/0$1*,%%216DQG52*(56&LUFXLWsXGJHV
                    BBBBBBBBBBBBBBBBB
                         25'(5
                    BBBBBBBBBBBBBBBBB
   3XUVXDQW WR 5XOH  RI WKH )HGHUDO 5XOHV RI $SSHOODWH
3URFHGXUHDQG6L[WK&LUFXLW5XOHDPDMRULW\RIWKHDFWLYH
MXGJHVRIWKLVFRXUWYRWHGWRJUDQWHQEDQFUHYLHZRIWKLVFDVH
)ROORZLQJDUJXPHQWVE\FRXQVHODQGDFRQIHUHQFHDPRQJWKH
MXGJHVLWZDVGHWHUPLQHGWKDWWKHHQEDQFFRXUWLVHTXDOO\
GLYLGHGLQWKLVFDVH)LYHPHPEHUVIDYRUDIILUPDQFHRIWKH
MXGJPHQW RI WKH GLVWULFW FRXUW DQG ILYH IDYRU UHYHUVDO        
3XUVXDQWWRRXUGHFLVLRQLQ6WXSDN7KUDOOY8QLWHG6WDWHV           sXGJH *,/0$1 SS  ILOHG D VHSDUDWH FRQFXUULQJ RSLQLRQ LQ

)GWK&LUWKHMXGJPHQWRIWKHGLVWULFWFRXUW       ZKLFK sXGJHV %$7&+(/'(5 *,%%216 DQG 52*(56 MRLQHG sXGJH
                                                                    &2/( SS  ILOHG D VHSDUDWH GLVVHQWLQJ RSLQLRQ LQ ZKLFK sXGJHV
LVDIILUPHGE\DQHTXDOO\GLYLGHGYRWH                           '$8*+75(< 0225( DQG &/$< MRLQHG

                               
1R                               *RRGZLQY*KHH                   *RRGZLQY*KHH                                  1R

                    BBBBBBBBBBBBBBBBBBB                                 KRZHYHU 'HQWRQ DQG 9DQFH GLG QRW FRQVLGHU WKH DUPHG
                                                                        UREEHU\RIIHQVH
                      &21&855(1&(
                    BBBBBBBBBBBBBBBBBBB                                    *RRGZLQ DOOHJHV WKDW VRRQ DIWHU WKH $SULO  KHDULQJ
                                                                        0DWWKHZVFDOOHGKLPLQWRWKHKHDULQJURRPWRWHOOKLPWKDWKH
  521$/' /(( *,/0$1 &LUFXLW sXGJH FRQFXUULQJ                    ZRXOGEHUHIHUULQJ*RRGZLQjVFDVHWRWKHIXOO3DUROH%RDUG
:KLOHLQFDUFHUDWHGsHIIUH\*RRGZLQZURWHDOHWWHUFULWLFL]LQJ          0DWWKHZVDOOHJHGO\DOOXGHGWRWKHOHWWHULQWKH&OHYHODQG&DOO
WKH 2KLR 3DUROH %RDUG IRU DOOHJHGO\ HQJDJLQJ LQ                  DQG3RVWZKHQKHWROG*RRGZLQWKDWmWKHRXWFRPH>EHIRUHWKH
GLVFULPLQDWRU\SUDFWLFHVWKDWUHVXOWHGLQXQQHFHVVDULO\ORQJ            IXOO3DUROH%RDUG@ZRXOGEHGLIIHUHQWl2QsXQHWKH
VHQWHQFHVDQGIRUH[HUFLVLQJXQIHWWHUHGGLVFUHWLRQ7KLVOHWWHU       IXOO3DUROH%RDUGFRQGXFWHGDWKLUGSURFHHGLQJDWZKLFKWLPH
ZDVSXEOLVKHGLQWKH&OHYHODQG&DOODQG3RVWQHZVSDSHULQ               LWGHWHUPLQHGWKDW*RRGZLQjVSURSHUFRQYLFWLRQRIIHQVHOHYHO
2FWREHURI                                                       ZDV LQGHHG VHYHQ WKXV FRQWLQXLQJ KLV VHQWHQFH RI
                                                                        LPSULVRQPHQWXQWLODWOHDVW$SULORI
   *RRGZLQKDGKLVILUVWSDUROHKHDULQJLQ0D\RIEHIRUH
3DUROH%RDUGPHPEHUV/DUU\0DWWKHZVDQG'RQDOG&DWDOGL                    *RRGZLQjV FRPSODLQW ZKLFK LV EDVHG XSRQ  86&
'XULQJ WKLV KHDULQJ 0DWKHZV DOOHJHGO\ WKUHDWHQHG WR JLYH        DOOHJHVWKDWWKH2KLR3DUROH%RDUGUHWDOLDWHGDJDLQVW
*RRGZLQDQmH[FHVVLYHVHQWHQFHlLQRUGHUWRSXQLVKKLPIRU              KLPLQYLRODWLRQRIKLV)LUVW$PHQGPHQWULJKWV7KH6XSUHPH
SXEOLFO\FULWLFL]LQJWKH3DUROH%RDUGDQGWRGHWHURWKHUVIURP          &RXUWjV  EDVLF WHVW IRU WKH YDOLGLW\ RI D   DFWLRQ E\
GRLQJ WKH VDPH  0DWWKHZV WKHQ DVVLJQHG *RRGZLQ D               SULVRQHUVnmZKHWKHU D MXGJPHQW LQ IDYRU RI WKH SODLQWLII
FRQYLFWLRQRIIHQVHOHYHORIVHYHQGHVSLWHDOOHJHGO\KDYLQJ             ZRXOG QHFHVVDULO\ LPSO\ WKH LQYDOLGLW\ RI >WKH SULVRQHUjV@
DFNQRZOHGJHG WKDW *RRGZLQ ZDV HQWLWOHG WR D FRQYLFWLRQ          FRQYLFWLRQRUVHQWHQFHl+HFNY+XPSKUH\86
RIIHQVH OHYHO RI RQO\ IRXU  8QGHU WKH 3DUROH %RDUG            nUHTXLUHVWKDWWKHVHDFWLRQVPXVWEHH[DPLQHGRQ
*XLGHOLQHVWKHFRQYLFWLRQRIIHQVHOHYHORIVHYHQSUHYHQWHG             D FDVHE\FDVH EDVLV LQ RUGHU WR GHWHUPLQH ZKHWKHU WKH
*RRGZLQ IURP EHFRPLQJ HOLJLEOH IRU UHOHDVH XQWLO DIWHU           SULVRQHUKDVDFRJQL]DEOHFODLP$QRWKHUNH\6XSUHPH&RXUW
$SULO   ZKHUHDV D FRQYLFWLRQRIIHQVH OHYHO RI IRXU       GHFLVLRQ(GZDUGVY%DOLVRN86DGGUHVVHV
ZRXOGKDYHHQWLWOHGKLPWRDOPRVWLPPHGLDWHUHOHDVHIURP                mWKHSRVVLELOLW\FOHDUO\HQYLVLRQHGE\+HFNWKDWWKHQDWXUHRI
LQFDUFHUDWLRQ  7KH GHIHQGDQWV DVVHUW WKDW WKH LQFUHDVHG         WKHFKDOOHQJHWRWKHSURFHGXUHVFRXOGEHVXFKDVQHFHVVDULO\
RIIHQVHOHYHOZDVDVVLJQHGWR*RRGZLQEHFDXVHRIKLVDOOHJHG            WR LPSO\ WKH LQYDOLGLW\ RI WKH MXGJPHQWl  ,G DW   7KH
LQYROYHPHQWLQDQDUPHGUREEHU\QRWLQUHWDOLDWLRQIRUKLV             GLVWULFWFRXUWRQWKHEDVLVRI+HFNDQG(GZDUGVJUDQWHGWKH
OHWWHUSXEOLVKHGLQWKH&OHYHODQG&DOODQG3RVW                        VWDWHjV PRWLRQ IRU VXPPDU\ MXGJPHQW EHFDXVH D UXOLQJ LQ
                                                                        *RRGZLQjVIDYRUZRXOGQHFHVVDULO\LPSO\WKHLQYDOLGLW\RIWKH
  *RRGZLQILOHGDUHTXHVWIRUUHFRQVLGHUDWLRQZLWKWKHIXOO             2KLR 3DUROH %RDUGjV GHFLVLRQ WR GHQ\ KLP DQ LPPHGLDWH
3DUROH %RDUG VHHNLQJ UHYLHZ RI WKH GHWHUPLQDWLRQ E\             UHOHDVHRQSDUROH
0DWWKHZVDQG&DWDOGL2Q)HEUXDU\DPDMRULW\RI
WKH IXOO 3DUROH %RDUG YRWHG WR UHVFLQG WKH SULRU UXOLQJ DQG      2IWKHWKUHHFDVHVWKDWDUHEHIRUHXVLQWKLVFRQVROLGDWHGHQ
UHKHDUWKHPDWWHU*RRGZLQZDVWKHQJLYHQDVHFRQGKHDULQJ             EDQF DSSHDO *RRGZLQjV FODLP LV WKH RQH WKDW LV PRVW
RQ$SULOEHIRUH3DUROH%RDUGPHPEHUVsD\'HQWRQ                DQDORJRXVWRWKHIDFWVWKDWEDUUHGWKHSULVRQHUjVFODLP
DQG%HUQLFH9DQFH'HQWRQDQG9DQFHIRXQGWKDW*RRGZLQ                 LQ(GZDUGV7KHQDWXUHRI*RRGZLQjVFODLPJRHVWRWKHYHU\
ZDVHQWLWOHGWRDFRQYLFWLRQRIIHQVHOHYHORIIRXUUDWKHUWKDQ          KHDUW RI ZK\ WKH 6XSUHPH &RXUW UXOHG LQ (GZDUGV WKDW DQ
VHYHQ  ,Q DUULYLQJ DW WKH FRQYLFWLRQRIIHQVH OHYHO RI IRXU   DWWDFNRQSULVRQSURFHGXUHVFDQLPSO\WKHLQYDOLGLW\RIWKH
1R                             *RRGZLQY*KHH                   *RRGZLQY*KHH                                  1R

XQGHUO\LQJFRQYLFWLRQRUVHQWHQFH$VLQWKHFDVHEHIRUHXV                                  BBBBBBBBBBBBB
(GZDUGVjV   FKDOOHQJH ZDV EDVHG RQ WKH SHUVRQDO
DQLPXVDJDLQVWKLPWKDWDOOHJHGO\WRRNSODFHDWDGLVFLSOLQDU\                                   ',66(17
KHDULQJ                                                                                       BBBBBBBBBBBBB
  5HVSRQGHQWjV FODLPDVVHUW>V@WKDWWKHFDXVHRIWKH               5*8<&2/(s5&LUFXLWsXGJHGLVVHQWLQJ$OWKRXJK
  H[FOXVLRQRIWKHH[FXOSDWRU\HYLGHQFHZDVWKHGHFHLWDQG            E\YRWHRIWKHHTXDOO\GLYLGHGHQEDQFFRXUWWKHFRXUWWRGD\
  ELDVRIWKHKHDULQJRIILFHUKLPVHOI+HFRQWHQGVWKDWWKH          DIILUPV WKH GLVWULFW FRXUWjV MXGJPHQW GLVPLVVLQJ SODLQWLII
  KHDULQJ RIILFHU OLHG DERXW WKH QRQH[LVWHQFH RI ZLWQHVV       sHIIUH\*RRGZLQjVFLYLOULJKWVVXLW,ZULWHVHSDUDWHO\EHFDXVH
  VWDWHPHQWVDQGWKXVmLQWHQWLRQDOO\GHQLHGlKLPWKHULJKW           LW LV P\ YLHZ WKDW *RRGZLQjV SURFHGXUDO FKDOOHQJH WR KLV
  WRSUHVHQWH[FXOSDWRU\HYLGHQFH                                    SDUROH KHDULQJ GRHV QRW QHFHVVDULO\ DWWDFN WKH IDFW RI KLV
                                                                      FRQYLFWLRQ RU WKH GXUDWLRQ RI KLV FRQILQHPHQW  *RRGZLQ
,GDWLQWHUQDOFLWDWLRQVRPLWWHG<HWWKH6XSUHPH&RXUW       VHHNV RQO\ D QHZ KHDULQJ EHIRUH WKH 2KLR $GXOW 3DUROH
KHOGWKDW(GZDUGVjVFODLPFRXOGQRWEHPDLQWDLQHG             %RDUGnQRW LPPHGLDWH UHOHDVH  $OWKRXJK WKH GXUDWLRQ RI
EHFDXVHWKHDOOHJDWLRQRILQWHQWLRQDOPLVFRQGXFWRQWKHSDUW          *RRGZLQjV VHQWHQFH PD\ SRVVLEO\ EH LPSDFWHG E\ D
RI WKH KHDULQJ RIILFHU DW WKH GLVFLSOLQDU\ SURFHHGLQJ          VXFFHVVIXO FKDOOHQJH SXUVXDQW WR  86&   WKH
QHFHVVDULO\ LPSOLHG WKH LQYDOLGLW\ RI WKH GHFLVLRQ DJDLQVW     GXUDWLRQRIKLVFRQILQHPHQWZLOOQRWQHFHVVDULO\EHDIIHFWHG
(GZDUGV7KHVDPHLVWUXHRI*RRGZLQjVFODLPDQG,VHHQR           6HH +HFN Y +XPSKUH\  86   
SULQFLSOHG GLVWLQFWLRQ EHWZHHQ WKH WZR FDVHV  , WKHUHIRUH    7KHUHIRUH,ZRXOGFRQFOXGHWKDWLVWKHDSSURSULDWH
FRQFXULQDIILUPLQJWKHMXGJPHQWRIWKHGLVWULFWFRXUW               YHKLFOHIRUWKLVVXLW
                                                                         'HIHQGDQWV VXJJHVWHG DW RUDO DUJXPHQW WKDW VKRXOG
                                                                      *RRGZLQVXFFHHGRQKLVFODLPKHZRXOGEHHQWLWOHG
                                                                      WR LPPHGLDWH UHOHDVH EHFDXVH KLV FRQYLFWLRQ RIIHQVH OHYHO
                                                                      ZRXOGDXWRPDWLFDOO\EHGHFUHDVHGIURPVHYHQWRIRXU7KLVLV
                                                                      VLPSO\ QRW WKH FDVH  ,I KH ZHUH WR VXFFHHG RQ KLV  
                                                                      FODLP*RRGZLQZRXOGUHFHLYHmQRWKLQJPRUHWKDQDµWLFNHW
                                                                      WR JHW LQ WKH GRRU RI WKH SDUROH ERDUGjl  $Q\DQZXWDNX Y
                                                                      0RRUH  )G   '& &LU   *RRGZLQ
                                                                      ZRXOGQRWEHJXDUDQWHHGSDUROHRUDVKRUWHUVHQWHQFH6HHLG
                                                                      DW5DWKHU*RRGZLQZRXOGUHFHLYHDQHZKHDULQJMXVW
                                                                      DVKHGLGZKHQKHPRYHGIRUUHFRQVLGHUDWLRQDQGUHFHLYHGD
                                                                      VHFRQGKHDULQJDQGDJDLQZKHQWKH3DUROH%RDUGGHFLGHGWR
                                                                      UHFRQVLGHUKLVSDUROHHOLJLELOLW\IRUDWKLUGWLPH
                                                                        $W WKLV QHZ KHDULQJ WKH 3DUROH %RDUG ZRXOG KDYH
                                                                      FRQVLGHUDEOH GLVFUHWLRQ XQGHU 2KLR ODZ WR GHWHUPLQH WKH
                                                                      DSSURSULDWH FRQYLFWLRQ RIIHQVH OHYHO DQG UHOHDVH GDWH IRU
                                                                      *RRGZLQ6HH2+,2 $'0,1 &2'( %&
                                                                      $OWKRXJK*RRGZLQPLJKWUHFHLYHDQRIIHQVHOHYHORIIRXUDW
1R                            *RRGZLQY*KHH        

WKLVKHDULQJKHFRXOGUHFHLYHDVHYHQVRPHVFRUHLQEHWZHHQ
RUHYHQDKLJKHUVFRUH)RUH[DPSOH*RRGZLQFRXOGSURYH
KLV)LUVW$PHQGPHQWFODLPE\VKRZLQJUHWDOLDWLRQEXWDWWKH
VDPHWLPHIDLOWRGHPRQVWUDWHWKDWWKH3DUROH%RDUGIDEULFDWHG
WKHFKDUJHRIDUPHGUREEHU\WKDWDOOHJHGO\FDXVHGKLVVFRUHWR
LQFUHDVHIURPIRXUWRVHYHQ8QGHUWKLVVFHQDULR*RRGZLQ
PLJKW QRW UHFHLYH LPPHGLDWH UHOHDVH  $OWHUQDWLYHO\ WKH
3DUROH%RDUGPLJKWH[HUFLVHLWVGLVFUHWLRQWRFRQVLGHUIDFWRUV
WKDW LW KDG QRW FRQVLGHUHG SUHYLRXVO\ VXFK DV *RRGZLQjV
FRQGXFW LQ SULVRQ VLQFH sXQH  RWKHU FRQGXFW QRW
SUHYLRXVO\FRQVLGHUHGRUDQ\QHZUHFRPPHQGDWLRQVPDGHE\
WKHVWDIIRIWKHGHSDUWPHQWRIUHKDELOLWDWLRQDQGFRUUHFWLRQRU
DQ\ RI LWV DJHQFLHV  6HH 2+,2 $'0,1 &2'(  
&
 %HFDXVH*RRGZLQVHHNVDQGLIVXFFHVVIXOZRXOGUHFHLYH
DQHZKHDULQJDWZKLFKWKH3DUROH%RDUGZRXOGDJDLQH[HUFLVH
LWVEURDGGLVFUHWLRQ,ZRXOGILQGWKDWKLVFODLPLVQRW
EDUUHGE\+HFN86,UHVSHFWIXOO\GLVVHQW