Court Opinion

ID: 2970684
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:19:31.741412+00
Date Added: 2024-06-11T11:21:28.662729
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
             3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

     (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                 )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6
               )257+(6,;7+&,5&8,7
                 BBBBBBBBBBBBBBBBB

 81,7(' 67$7(6 2) $0(5,&$        ;
           3ODLQWLII$SSHOOHH     
                                   
                                      1R
             Y                    
                                    !
                                   
 s8/,2 9,//$5&(                   
           'HIHQGDQW$SSHOODQW 
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
     IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH
     1Rn$OHWD$7UDXJHU'LVWULFWsXGJH
                 $UJXHG0DUFK
           'HFLGHGDQG)LOHG0DUFK
 %HIRUH1(/621&2/(DQG*,/0$1&LUFXLWsXGJHV
                   BBBBBBBBBBBBBBBBB
                        &2816(/
$5*8('  6XPWHU / &DPS )('(5$/ 38%/,&
'()(1'(5j62)),&(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW
9DQ 6 9LQFHQW $66,67$17 81,7(' 67$7(6
$77251(< 1DVKYLOOH 7HQQHVVHH IRU $SSHOOHH
21 %5,()  6XPWHU / &DPS )('(5$/ 38%/,&
'()(1'(5j62)),&(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW
9DQ 6 9LQFHQW $66,67$17 81,7(' 67$7(6
$77251(<1DVKYLOOH7HQQHVVHHIRU$SSHOOHH

                             
     8QLWHG6WDWHVY9LOODUFH                       1R       1R                         8QLWHG6WDWHVY9LOODUFH           

                      BBBBBBBBBBBBBBBBB                                   7KHUHZDVVXIILFLHQWHYLGHQFHWKDW0U9LOODUFHjVRIIHQVHV
                                                                        LQYROYHGDWOHDVWNLORJUDPVRIPDULMXDQD7KDWHYLGHQFH
                          23,1,21                                       LQ FRQMXQFWLRQ ZLWK WKH HYLGHQFH WKDW 9LOODUFH DJUHHG DQG
                      BBBBBBBBBBBBBBBBB                                 LQWHQGHG WR GLVWULEXWH D FRQWUROOHG VXEVWDQFH LV HQRXJK WR
                                                                        VXSSRUW9LOODUFHjVFRQYLFWLRQVXQGHUDQG
   '$9,'$1(/621&LUFXLWsXGJH7KHFHQWUDOLVVXHLQ
WKLV DSSHDO LV ZKHWKHU D GHIHQGDQW PD\ EH FRQYLFWHG RI           $)),50('
FRQVSLUDF\WRGLVWULEXWHDWOHDVWNLORJUDPVRIPDULMXDQD
DQGRISRVVHVVLRQRIDWOHDVWNLORJUDPVRIWKHGUXJZLWK
LQWHQWWRGLVWULEXWHLWQRWZLWKVWDQGLQJWKHDOOHJHGDEVHQFHRI
HYLGHQFH WKDW KH VSHFLILFDOO\ DJUHHG WR GLVWULEXWH VXFK D
VXEVWDQWLDOTXDQWLW\DQGVSHFLILFDOO\LQWHQGHGWRGLVWULEXWHWKDW
DPRXQW$ELQGLQJGHFLVLRQRIWKLVFRXUWoZKLFKDFFRUGV
ZLWKWKHGHFLVLRQVRIDWOHDVWVL[RWKHUFLUFXLWFRXUWVRIDSSHDOV
oFRPSHOVWKHFRQFOXVLRQWKDWFRQYLFWLRQLVSHUPLVVLEOHXQGHU
WKHVHFLUFXPVWDQFHV
                                  ,
  7KHGHIHQGDQWsXOLR9LOODUFHZDVLQGLFWHGRQFKDUJHVRI
FRQVSLUDF\WRGLVWULEXWHDWOHDVWNLORJUDPVRIPDULMXDQD
LQYLRODWLRQRI86&DQGSRVVHVVLRQRIDWOHDVW
 NLORJUDPV RI PDULMXDQD ZLWK LQWHQW WR GLVWULEXWH LW LQ
YLRODWLRQ RI  86&  D  +H ZDV WULHG EHIRUH D
MXU\7KHNH\ZLWQHVVDW9LOODUFHjVWULDOZDVDFRFRQVSLUDWRU
sRVH5H\QDZKRWHVWLILHGWKDWKHKDGFRPHWR1DVKYLOOHmWR
GRVRPHGHDOVZLWK0U9LOODUFHDQGRWKHUSHRSOHGHDOLQJ
ZLWKPDULMXDQDl
   $V KH H[SODLQHG DW WULDO 0U 5H\QD DUUDQJHG IRU WKH
WUDQVSRUWDWLRQRIDORDGRIPDULMXDQD IURP 6DQ$QWRQLRWR
1DVKYLOOH  :KLOH LQ 6DQ $QWRQLR 5H\QD WHOHSKRQHG 0U
9LOODUFHWRVHHmLIKHZRXOGEHDEOHWRZRUNZLWKXVlDQGWR
mOHWKLPNQRZWKDW,ZDVRQWKHZD\l5DWKHUWKDQVSHDNLQJ
RIPDULMXDQDE\QDPHRYHUWKHWHOHSKRQH5H\QDDQG9LOODUFH
VSRNHRImSDLQWLQJVRPHDSDUWPHQWVl5H\QDDFNQRZOHGJHG
DWWULDOWKDWmDSDUWPHQWlZDVDmFRGHZRUGl5H\QDKDGEHHQ
LQVWUXFWHGWRFDOO9LOODUFHE\WKHVXSSOLHUVRIWKHPDULMXDQD
'DYLG9HUQDZDQGDPDQUHIHUUHGWRRQO\DVm0DULRl                         
                                                                             :H WKLQN WKDW WKH MXU\ FRXOG UHDVRQDEO\ ILQG WKDW WKH SODVWLF ZUDS LQ
                                                                        ZKLFK WKH PDULMXDQD ZDV SDFNDJHG ZHLJKHG OHVV WKDQ QLQH NLORJUDPV
                                                                        URXJKO\  SRXQGV
       8QLWHG6WDWHVY9LOODUFH                      1R       1R                     8QLWHG6WDWHVY9LOODUFH       

   8QGHURXUGHFLVLRQLQ8QLWHG6WDWHVY*DUFLD)G                 0U5H\QDWRRNWKHPDULMXDQDWRDFHUWDLQ5LFN.LUDOJD
WK&LUPRUHRYHUWKHFRQYLFWLRQVZRXOG                mZKRZDVVXSSRVHGWRPDNHWKHWULS>IURP6DQ$QWRQLRWR
KDYH WR VWDQG LQ DQ\ HYHQW  :H KHOG LQ *DUFLD WKDW WKH      1DVKYLOOH@LQDZKHHOHURUUHQWDFDUl5H\QDDQG.LUDOJD
JRYHUQPHQW QHHG QRW mSURYH PHQV UHD DV WR WKH W\SH DQG         DJUHHGWRPHHWDWD6KRQH\jV,QQLQ1DVKYLOOH
TXDQWLW\  RI WKH GUXJVl LQ RUGHU WR HVWDEOLVK D YLRODWLRQ RI
   $V WKH *DUFLD RSLQLRQ H[SODLQHG GUXJ W\SH DQG          :KHQWKHPHHWLQJRFFXUUHG5H\QDWROG.LUDOJDWKDWWKH\
TXDQWLW\DUHLUUHOHYDQWWRWKHPHQVUHDHOHPHQWRID             ZHUHWRWDNHWKHPDULMXDQDWR9LOODUFHjVKRXVHLQDFFRUGDQFH
ZKLFK UHTXLUHV QRWKLQJ PRUH VSHFLILF WKDQ DQ LQWHQW WR           ZLWKWKHLQVWUXFWLRQVRI9HUQDZDQG0DULR9LOODUFHZDVWR
GLVWULEXWHDFRQWUROOHGVXEVWDQFH6HHLGFLWLQJ86&            VHOO VRPH RI WKH PDULMXDQD DQG WR KROG WKH UHPDLQGHU IRU
 D  ,QWHQW LV OLNHZLVH LUUHOHYDQW WR WKH SHQDOW\     mRWKHUIHOORZVlWRmJHWULGRIWRRl5H\QDWHOHSKRQHG9LOODUFH
SURYLVLRQVRIEZKLFKUHTXLUHRQO\WKDWWKHVSHFLILHG            IURPWKH6KRQH\jV,QQDQGmWROGKLPWKDW,ZDVRQP\ZD\WR
GUXJW\SHVDQGTXDQWLWLHVEHmLQYROY>HG@lLQDQRIIHQVH             KLVKRXVHl$JDLQWKHPHQGLGQRWXVHWKHZRUGmPDULMXDQDl
86&EVHH8QLWHG6WDWHVY&ROOD]R$SRQWH             ZKLOHRQWKHWHOHSKRQHomZH GRQjW VD\WKDWZRUGLQWRWKH
)GVW&LUFHUWGHQLHG6&W           SKRQHl
8QLWHG6WDWHVY6KHSSDUG)GQWK&LU
FHUWGHQLHG86                                 5H\QDDQG.LUDOJDGURYHWR9LOODUFHjVKRXVHDQG5H\QD
                                                                         ZHQWLQVLGHWRWHOO9LOODUFHWKDWWKHmVWXIIZDVDOUHDG\WKHUHl
   0U9LOODUFHSURWHVWVWKDWXQGHUsRQHVY8QLWHG6WDWHV          7KH WZR PHQ WKHQ FDPH RXW DQG UHPRYHG WZR EDJV RI
86DQG$SSUHQGLY1HZsHUVH\86                PDULMXDQD IURP WKH WUXQN RI .LUDOJDjV FDU  7KH\ ZHUH
GUXJTXDQWLW\LVDQHOHPHQWRIWKHRIIHQVHLIDVLQWKLV        SUHYHQWHG IURP FDUU\LQJ WKH EDJV LQWR WKH KRXVH E\ WKH
FDVH LWV HIIHFW LV WR LQFUHDVH WKH PD[LPXP SHQDOW\  +H       DSSHDUDQFHRIODZHQIRUFHPHQWRIILFHUV,WWXUQHGRXWWKDW
VXJJHVWVWKDWPHQVUHDPXVWEHSURYHGDVWRHYHU\HOHPHQWRI             .LUDOJD KDG LQIRUPHG WKH )%, DERXW WKH VKLSPHQW RI
WKH RIIHQVH  %XW *DUFLD WHDFKHV WKDW WKH GUXJ TXDQWLW\         PDULMXDQDWR1DVKYLOOHDQGWKHRIILFHUVKDGPRQLWRUHGWKH
HOHPHQWRIWKHRIIHQVHLVHQWLUHO\LQGHSHQGHQWRIWKHPHQVUHD           GHOLYHU\WR9LOODUFHjVKRXVH
UHTXLUHPHQW*DUFLD)GDW$WOHDVWVL[RIRXU
VLVWHU FLUFXLWV KDYH DJUHHG WKDW $SSUHQGL GRHV QRW UHTXLUH         2IILFHUVWRRNSRVVHVVLRQRIWKHWZREDJVRIPDULMXDQDWKDW
SURRIRINQRZOHGJHRULQWHQWZLWKUHVSHFWWRGUXJW\SHDQG               5H\QDDQG9LOODUFHKDGEHHQFDUU\LQJWRWKHKRXVHDQGWKH\
TXDQWLW\  6HH 8QLWHG 6WDWHV Y *DPH]*RQ]DOH]  )G         VHL]HGDGGLWLRQDOEDJVRIPDULMXDQDIURPWKHWUXQNRIWKHFDU
WK&LU8QLWHG6WDWHVY&DUUDQ]D             $OORIWKHPDULMXDQDZDVSDFNDJHGLQWREXQGOHVZLWKSODVWLF
)GWK&LUFHUWGHQLHG6&W           ZUDS7KHWRWDOZHLJKWRIWKHEXQGOHVLQFOXGLQJWKHSODVWLF
&ROOD]R$SRQWH)GDW8QLWHG6WDWHVY%DUERVD               ZUDSZDVDSSUR[LPDWHO\NLORJUDPV9LOODUFHDGPLWWHGWR
)GG&LUFHUWGHQLHG6&W            WKHRIILFHUVWKDWmKHZDVDZDUHWKDWPDULMXDQDZDVJRLQJWREH
8QLWHG6WDWHVY&DUUHUD)GWK             EURXJKWWRKLVKRXVHlEXWKHVDLGWKDWmKHZDVVXUSULVHGDWWKH
&LU6KHSSDUG)GDWQ                               DPRXQWl
                                                                           $IWHU KHDULQJ WKLV HYLGHQFH WRJHWKHU ZLWK HYLGHQFH WKDW
                                                                         HOHFWURQLF VFDOHV W\SLFDO RI WKRVH XVHG LQ GLYLGLQJ ODUJH
                                                                         TXDQWLWLHVRIGUXJVZHUHIRXQGLQ9LOODUFHjVKRXVHWKHMXU\
                                                                         FRQYLFWHG0U9LOODUFHRQERWKFRXQWVRIWKHLQGLFWPHQW7KH
                                                                        MXU\ H[SUHVVO\ IRXQG WKDW HDFK RIIHQVH o FRQVSLUDF\ DQG
     %HFDXVH   FULPLQDOL]HV FRQVSLUDFLHV WR YLRODWH   WKH
KROGLQJ RI *DUFLD
                DSSOLHV WR YLRODWLRQV RI WKDW VWDWXWH DV ZHOO           SRVVHVVLRQZLWKLQWHQWWRGLVWULEXWHoLQYROYHGDWOHDVW
     8QLWHG6WDWHVY9LOODUFH                     1R       1R                      8QLWHG6WDWHVY9LOODUFH        

NLORJUDPVRIPDULMXDQD7KHVHILQGLQJVVXEMHFWHG9LOODUFHWR         9LOODUFH DW WKH UHTXHVW RI 0DULR DQG 9HUQDZ WR VHH mLI KH
D PLQLPXP VHQWHQFH RI  PRQWKVj LPSULVRQPHQW VHH          ZRXOGEHDEOHWRZRUNZLWKXVlDQGWROHW9LOODUFHNQRZWKDW
86&  E% DQG  PRQWKV ZDV WKH VHQWHQFH         5H\QD mZDV RQ WKH ZD\l  $OWKRXJK WKH FRQYHUVDWLRQ ZDV
LPSRVHGE\WKHGLVWULFWFRXUW                                        FRXFKHG LQ WHUPV RI SDLQWLQJ DSDUWPHQWV WKH WRWDOLW\ RI
                                                                      5H\QDjVWHVWLPRQ\oLQFOXGLQJKLVVWDWHPHQWWKDWKHFDPHWR
                                ,,                                    1DVKYLOOHWRmGRVRPHGHDOVZLWK0U9LOODUFHGHDOLQJ
                                                                      ZLWKPDULMXDQDlDQGKLVDFNQRZOHGJPHQWWKDWmDSDUWPHQWl
   0U 9LOODUFH DUJXHV RQ DSSHDO WKDW WKH HYLGHQFH ZDV        ZDVDmFRGHZRUGloJDYHWKHMXU\DPSOHUHDVRQWRILQGWKDW
LQVXIILFLHQW WR VXSSRUW KLV FRQYLFWLRQV  :KHQ FRQVLGHULQJ     WKHFRQYHUVDWLRQZDVLQIDFWDERXWDVKLSPHQWRIPDULMXDQD
VXFKDQDUJXPHQWZHPXVWQRWmZHLJKWKHHYLGHQFHSUHVHQWHG           5H\QD WHVWLILHG IXUWKHU WKDW KH WHOHSKRQHG 9LOODUFH
FRQVLGHU WKH FUHGLELOLW\ RI ZLWQHVVHV RU VXEVWLWXWH RXU       LPPHGLDWHO\ EHIRUH GHOLYHULQJ WKH PDULMXDQD WR 9LOODUFHjV
MXGJPHQW IRU WKDW RI WKH MXU\l  8QLWHG 6WDWHV Y 0*       KRXVHWKDWKHLQIRUPHG9LOODUFHXSRQDUULYDOWKDWWKHmVWXIIl
7UDQVSRUW 6HUYLFHV ,QF  )G   WK &LU      ZDVWKHUHDQGWKDWKHDQG9LOODUFHWRJHWKHUEHJDQWRXQORDG
:KHUHDPRWLRQIRUDMXGJPHQWRIDFTXLWWDOKDVEHHQ           DYHKLFOHWKDWREYLRXVO\FRQWDLQHGDODUJHTXDQWLW\RImVWXIIl
GHQLHGRXUWDVNLVWRGHWHUPLQHmZKHWKHUDIWHUYLHZLQJWKH          9LOODUFHKLPVHOIDGPLWWHGWKDWKHNQHZ5H\QDZDVEULQJLQJ
HYLGHQFHLQWKHOLJKWPRVWIDYRUDEOHWRWKHSURVHFXWLRQDQG          PDULMXDQDWRKLVKRXVH$QG5H\QDVDLGWKDW9LOODUFHjVUROH
DIWHUJLYLQJWKHJRYHUQPHQWWKHEHQHILWRIDOOLQIHUHQFHVWKDW        ZDV WR mKROG >WKH PDULMXDQD@ DQG VHOO VRPH RI LWl  7KLV
FRXOGUHDVRQDEO\EHGUDZQIURPWKHWHVWLPRQ\DQ\UDWLRQDO            HYLGHQFH VXUHO\ SHUPLWWHG WKH MXU\ WR LQIHU WKDW 9LOODUFH
WULHURIIDFWFRXOGILQGWKHHOHPHQWVRIWKHFULPHEH\RQGD           LQWHQGHGWRSDUWLFLSDWHLQWKHGLVWULEXWLRQRIPDULMXDQDDQG
UHDVRQDEOHGRXEWl,GDWFLWLQJsDFNVRQY9LUJLQLD       DJUHHGWRGRVR
86 8QGHUWKLVVWDQGDUGZHEHOLHYHD
UDWLRQDO MXU\ FRXOG LQGHHG ILQG 0U 9LOODUFH JXLOW\ RI WKH     7KH UHDO WKUXVW RI 0U 9LOODUFHjV DUJXPHQW LV WKDW WKH
FKDUJHGRIIHQVHV                                                     JRYHUQPHQWjV SURRI ZDV LQVXIILFLHQW EHFDXVH WKHUH ZDV QR
                                                                      HYLGHQFHWKDWKHDJUHHGRULQWHQGHGWRGLVWULEXWHDWOHDVW
  0U9LOODUFHGLGQRWPRYHIRUDMXGJPHQWRIDFTXLWWDORQ            NLORJUDPVRIPDULMXDQDDVRSSRVHGWRVRPHOHVVHUTXDQWLW\RI
WKH FKDUJH RI SRVVHVVLRQ ZLWK LQWHQW WR GLVWULEXWH            WKHGUXJ,QWKLVFRQQHFWLRQ0U9LOODUFHFLWHVKLVVWDWHPHQW
$FFRUGLQJO\KLVFRQYLFWLRQRQWKDWFKDUJHPXVWEHDIILUPHG           XSRQDUUHVWWKDWKHZDVVXUSULVHGE\WKHDPRXQWRIPDULMXDQD
DEVHQWDmPDQLIHVWPLVFDUULDJHRIMXVWLFHl8QLWHG6WDWHVY         0U5H\QDKDGEURXJKWWRKLVKRXVH
+RUU\)GWK&LUsXVWLFHPDQLIHVWO\
PLVFDUULHV RQO\ ZKHQ mWKH UHFRUG LV GHYRLG RI HYLGHQFH           6XUSULVHGKHPD\KDYHEHHQEXWWKHUHLVQRHYLGHQFHWKDW
SRLQWLQJWRJXLOWl8QLWHG6WDWHVY3ULFH)G         KHZLWKGUHZIURPWKHFRQVSLUDF\RQORRNLQJLQWRWKHWUXQNRI
WK&LUFHUWGHQLHG86,IWKHHYLGHQFH      WKHYHKLFOHDQGVHHLQJKRZPXFKPDULMXDQDZDVWKHUH7KH
DJDLQVW9LOODUFHZDVVXIILFLHQWWRVXSSRUWDFRQYLFWLRQXQGHU         IDFWXDOSUHGLFDWHXUJHGE\0U9LOODUFHoLHWKDWWKHUHZDV
WKHVWDQGDUGRIsDFNVRQY9LUJLQLDLWIROORZVjIRUWLRULWKDW       QRHYLGHQFHWKDWKHHYHUFRQWHPSODWHGDTXDQWLW\RIPDULMXDQD
WKHHYLGHQFHZDVVXIILFLHQWXQGHUWKHmPDQLIHVWPLVFDUULDJH           DVJUHDWDVNLORJUDPVoLVWKXVKLJKO\TXHVWLRQDEOH,W
RIMXVWLFHlVWDQGDUG                                                 VHHPVUHDVRQDEOHWRLQIHUWKDWKHFRQWHPSODWHGDTXDQWLW\WKDW
                                                                      ODUJHZKHQDIWHUVHHLQJZLWKKLVRZQH\HVZKDW5H\QDKDG
  7KH HYLGHQFH o 0U 5H\QDjV WHVWLPRQ\ LQ SDUWLFXODU o       EHHQWDONLQJDERXWKHHOHFWHGWRFDUU\RQZLWKWKHSODQ
SODLQO\ VXSSRUWV D ILQGLQJ WKDW 0U 9LOODUFH FRQVSLUHG WR
GLVWULEXWHDQGSRVVHVVHGZLWKWKHLQWHQWWRGLVWULEXWHVRPH
TXDQWLW\ RI PDULMXDQD  5H\QD WHVWLILHG WKDW KH WHOHSKRQHG