Court Opinion

ID: 2970220
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:07:34.117421+00
Date Added: 2024-06-11T15:01:35.260375
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

 *(2))5(< %85528*+6               ;
         3HWLWLRQHU$SSHOOHH       
                                    
                                      1R
            Y                      
                                     !
                                    
 s2+1 0$.2:6.,                     
        5HVSRQGHQW$SSHOODQW 
                                   1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
  1RnsRKQ&RUEHWW2j0HDUD'LVWULFWsXGJH
                   $UJXHGsXQH
          'HFLGHGDQG)LOHG)HEUXDU\
   %HIRUH.(,7+6,/(5DQG&/$<&LUFXLWsXGJHV
                   BBBBBBBBBBBBBBBBB
                        &2816(/
$5*8('sHUUROG(6FKURWHQERHUs$&.621&2817<
3526(&8725j6 2)),&( sDFNVRQ 0LFKLJDQ IRU
$SSHOODQWsDPHV.URJVUXG'HWURLW0LFKLJDQIRU$SSHOOHH
21%5,()sHUUROG(6FKURWHQERHUs$&.621&2817<
3526(&8725j6 2)),&( sDFNVRQ 0LFKLJDQ IRU
$SSHOODQWsDPHV.URJVUXG'HWURLW0LFKLJDQIRU$SSHOOHH

                             
       %XUURXJKVY0DNRZVNL                       1R

                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
   6,/(5&LUFXLWsXGJHsRKQ0DNRZVNLIRUPHUZDUGHQRI
WKH0LFKLJDQ7UDLQLQJ8QLWLQ,RQLD0LFKLJDQDSSHDOVWKH
GLVWULFW FRXUWjV JUDQW RI *HRIIUH\ %XUURXJKVjV SHWLWLRQ IRU
KDEHDVUHOLHIXQGHU86&,QRSSRVLQJWKHKDEHDV
JUDQW 0DNRZVNL DUJXHV WKDW DOO RI %XUURXJKVjV FODLPV DUH
SURFHGXUDOO\GHIDXOWHG:H5(9(56(WKHGLVWULFWFRXUWjV
LVVXDQFHRIDZULWRIKDEHDVFRUSXVDQGLWVRUGHUGLUHFWLQJWKH
6WDWHWRYDFDWHSHWLWLRQHUjVFRQYLFWLRQIRUIHORQ\PXUGHUDV
%XUURXJKVjVFODLPVDUHSURFHGXUDOO\GHIDXOWHG
                     ,%$&.*5281'
   %XUURXJKVDQGFRGHIHQGDQW9LUJLO*UHHQZHUHDUUHVWHG
IRUUREELQJD0LQL0DUWDQGNLOOLQJDVWRUHHPSOR\HHsLPP\
0HQWLQN%HIRUHWULDO*UHHQHQWHUHGDQXQVZRUQJXLOW\SOHD
WR FKDUJHV RI VHFRQG GHJUHH PXUGHU DQG SRVVHVVLRQ RI D
ILUHDUPLQWKHFRPPLVVLRQRIPXUGHUVWDWLQJWKDWKHZHQWLQWR
WKHVWRUHDORQHZLWKDVHPLDXWRPDWLFULIOHUREEHGLWDQGVKRW
0HQWLQNEHFDXVHKHGLGQRWZDQWWREHLGHQWLILHG$IWHUDMXU\
WULDO %XUURXJKV ZDV FRQYLFWHG RI IHORQ\ PXUGHU 0&/
VHFRQGGHJUHHPXUGHU0&/DUPHG
UREEHU\ 0&/   DQG IHORQ\ ILUHDUP FKDUJHV
0&/E
   $IWHUWKHMXU\UHWXUQHGLWVYHUGLFWWULDOFRXQVHOPRYHGIRU
DsXGJPHQW129RQWKHIHORQ\PXUGHUFRQYLFWLRQEDVHGRQ
LQVXIILFLHQWHYLGHQFHDQGWKHFRXUWJUDQWHGLW%XUURXJKVWKHQ
SOHGJXLOW\WREHLQJDKDELWXDOIHORQ%HIRUHVHQWHQFLQJWULDO
FRXQVHOILOHGDVHFRQGsXGJPHQW129RQWKHVHFRQGGHJUHH
PXUGHU FRQYLFWLRQ ZKLFK WKH FRXUW DOVR JUDQWHG EDVHG RQ
LQVXIILFLHQWHYLGHQFH7KHFRXUWWKHQVHQWHQFHG%XUURXJKVWR

    
      0DNRZVNL ZDV %XUURXJKVjV ZDUGHQ ZKHQ KH ILOHG WKH KDEHDV
SHWLWLRQ
     %XUURXJKVY0DNRZVNL                        1R      1R                        %XUURXJKVY0DNRZVNL           

MXGJPHQW WKH 0LFKLJDQ &RXUW RI $SSHDOV DQG 0LFKLJDQ         WZR\HDUVIRUWKHIHORQ\ILUHDUPFRQYLFWLRQDQGWHQWRWZHQW\
6XSUHPH&RXUWVWDWHGWKDWKHIDLOHGmWRHVWDEOLVKHQWLWOHPHQW       \HDUVIRUDUPHGUREEHU\
WRUHOLHIXQGHU0&5'l0DNRZVNLFRUUHFWO\DUJXHV
WKDWWKHVWDWHDSSHOODWHFRXUWVjUHIHUHQFHWR0&5'          2Q GLUHFW DSSHDO E\ ERWK SDUWLHV WKH 0LFKLJDQ &RXUW RI
GHQLHG SHWLWLRQHUjV FODLPV XQGHU WKH SURFHGXUDO GHIDXOW       $SSHDOVIRXQGVXIILFLHQWHYLGHQFHIRUWKHVHFRQGGHJUHHDQG
SURYLVLRQ0&5'                                   IHORQ\PXUGHUFKDUJHVUHYHUVHGWKHWULDOFRXUWDQGFULWLFL]HG
                                                                    LWIRULPSURSHUO\FRQVLGHULQJLQIRUPDWLRQQRWLQHYLGHQFHDQG
  ,Q 6LPSVRQ WKLV FRXUW FRQVLGHUHG ZKHWKHU WKH 0LFKLJDQ     IDLOLQJWRYLHZWKHHYLGHQFHLQWKHOLJKWPRVWIDYRUDEOHWRWKH
6XSUHPH &RXUW EDVHG LWV MXGJPHQW RQ DQ LQGHSHQGHQW DQG      SURVHFXWLRQ  ,W DOVR DIILUPHG WKH FRQYLFWLRQV IRU DUPHG
DGHTXDWHVWDWHSURFHGXUDOUXOHE\VWDWLQJWKDWWKHGHIHQGDQW        UREEHU\KDELWXDOVHFRQGDQGIHORQ\ILUHDUPFKDUJHV,QOLJKW
mIDLOHGWRPHHWWKHEXUGHQRIHVWDEOLVKLQJHQWLWOHPHQWWRUHOLHI    RIWKHGRXEOHMHRSDUG\SUREOHPKRZHYHUWKHFRXUWRIDSSHDOV
XQGHU0&5'l)GDW7KRXJKWKHUXOLQJ        YDFDWHG WKH VHFRQGGHJUHH PXUGHU DUPHG UREEHU\ DQG
ZDVEULHIDQGGLGQRWH[SOLFLWO\UHIHUHQFH0&5'      KDELWXDOVHFRQGFRQYLFWLRQVDQGUHPDQGHGIRUVHQWHQFLQJRQ
ZHGHWHUPLQHGWKDWWKH0LFKLJDQ6XSUHPH&RXUWjVVWDWHPHQW           WKHIHORQ\PXUGHUDQGIHORQ\ILUHDUPFKDUJHV
H[SODLQHGLWVRUGHU6HHLG$VmWKHODVWVWDWHFRXUWUHQGHULQJ
MXGJPHQW LQ WKH FDVH LWV GHFLVLRQ GHQ\LQJ >GHIHQGDQWjV@        3ULRUWRUHVHQWHQFLQJ%XUURXJKVILOHGKLVILUVWPRWLRQIRU
FODLPVRQWKHEDVLVRIDVWDWHSURFHGXUDOEDUSUHYHQWVIHGHUDO      UHOLHIIURPMXGJPHQWXQGHU0&5HWVHTVHHNLQJWR
KDEHDVUHYLHZl,G                                              VHWDVLGHWKHUHPDLQLQJFKDUJHVDQGREWDLQDQHZWULDOEDVHG
                                                                    RQSURVHFXWRULDOPLVFRQGXFWDQGLQHIIHFWLYHDVVLVWDQFHRIWULDO
  /LNHZLVH WKH 0LFKLJDQ &RXUW RI $SSHDOV DQG 0LFKLJDQ       DQGDSSHOODWHFRXQVHO7KHFLUFXLWFRXUWUHMHFWHGERWKFODLPV
6XSUHPH&RXUWjVVWDWHPHQWVWKDW%XUURXJKVZDVQRWHQWLWOHG          DQGVHQWHQFHG%XUURXJKVWRDOLIHWHUPIRUIHORQ\PXUGHUDQG
WR UHOLHI XQGHU 0&5 ' SUHVHQWV D VXIILFLHQW        D WZR\HDU WHUP IRU WKH IHORQ\ ILUHDUP FRQYLFWLRQ  7KH
H[SODQDWLRQ WKDW WKHLU UXOLQJV ZHUH EDVHG RQ SURFHGXUDO      0LFKLJDQ&RXUWRI$SSHDOVUHMHFWHG%XUURXJKVjVFUXHODQG
GHIDXOW:HWKHUHIRUH5(9(56(WKHGLVWULFWFRXUWjVJUDQW          XQXVXDO SXQLVKPHQW FODLP RQ DSSHDO DQG DIILUPHG KLV
RIDZULWRIKDEHDVFRUSXVDQGLWVRUGHUGLUHFWLQJWKH6WDWHWR     VHQWHQFH  7KH 0LFKLJDQ 6XSUHPH &RXUW GHQLHG OHDYH WR
YDFDWH%XUURXJKVjVFRQYLFWLRQIRUIHORQ\PXUGHU                    DSSHDO
                                                                      %XUURXJKVILOHGDVHFRQGPRWLRQIRUUHOLHIXQGHU0&5
                                                                    HWVHTDOOHJLQJWKDW*UHHQjVVWDWHPHQWWRDZLWQHVV
                                                                    VKRXOGKDYHEHHQDGPLWWHGDWWULDODQGWKHFRXUWjVIDLOXUHWRGR
                                                                    VR ZDV D GHQLDO RI KLV ULJKW WR SUHVHQW D GHIHQVH  WKH
                                                                    JRYHUQPHQWjV IDLOXUH WR GLVFORVH *UHHQjV JXLOW\ SOHD DQG
                                                                    DUJXPHQW WKDW %XUURXJKV ZDV WKH VKRRWHU FRQVWLWXWHG
                                                                    SURVHFXWRULDOPLVFRQGXFWWULDOFRXQVHOjVIDLOXUHWRSUHVHQW
                                                                    *UHHQjV JXLOW\ SOHD DQG WR PRYH IRU D GLUHFWHG YHUGLFW RI
                                                                    DFTXLWWDO RQ WKH WZR PXUGHU FRXQWV UHVXOWHG LQ LQHIIHFWLYH
                                                                    DVVLVWDQFH RI FRXQVHO DQG  DSSHOODWH FRXQVHOjV IDLOXUH WR
                                                                    UDLVHWKHVHLVVXHVRQDSSHDOE\ULJKWZDVLQHIIHFWLYHDVVLVWDQFH
                                                                    RI FRXQVHO  7KH FLUFXLW FRXUW GHQLHG WKHVH FODLPV RQ WKH
                                                                    PHULWVDVZHOODVRQWKHILUVW0&5PRWLRQVGHFLVLRQ
       %XUURXJKVY0DNRZVNL                             1R        1R                       %XUURXJKVY0DNRZVNL           

RU WKH ILUVW 0LFKLJDQ &RXUW RI $SSHDOVj GHFLVLRQ                                            ,,',6&866,21
6XEVHTXHQWO\ WKH 0LFKLJDQ &RXUW RI $SSHDOV DQG WKH
0LFKLJDQ6XSUHPH&RXUWGHQLHG%XUURXJKVjVDSSOLFDWLRQIRU                       %XUURXJKVILOHGKLVSHWLWLRQIRUKDEHDVUHOLHILQVRLWV
OHDYHWRDSSHDOVWDWLQJKHIDLOHGWRHVWDEOLVKmHQWLWOHPHQWIRU             UHYLHZLVVXEMHFWWR86&G7KHLQGHSHQGHQW
UHOLHIXQGHU0&5'l6HH3HRSOHY%XUURXJKV                 DQGDGHTXDWHVWDWHJURXQGGRFWULQHSURFHGXUDOO\EDUVIHGHUDO
1:G0LFK7DEOH                                             FRXUWVIURPUHYLHZLQJDKDEHDVFODLPXQGHUmZKHQD
                                                                             VWDWHFRXUWGHFOLQH>V@WRDGGUHVVDSULVRQHUjVIHGHUDOFODLPV
   %XUURXJKVWKHQILOHGDSHWLWLRQIRUKDEHDVFRUSXVDOOHJLQJ                EHFDXVH WKH SULVRQHU KDG IDLOHG WR PHHW D VWDWH SURFHGXUDO
WKHVDPHLVVXHVSUHVHQWHGLQKLVVHFRQG0&5PRWLRQ                 UHTXLUHPHQWl&ROHPDQY7KRPSVRQ86
7KH UHYLHZLQJ PDJLVWUDWH MXGJH IRXQG WKDW QRQH RI                     FLWDWLRQVRPLWWHGm,QKDEHDVLIWKHGHFLVLRQRIWKH
%XUURXJKVjVFODLPVZDVSURFHGXUDOO\EDUUHGEHFDXVHWKHVWDWH                 ODVWVWDWHFRXUWWRZKLFKWKHSHWLWLRQHUSUHVHQWHGKLVIHGHUDO
DSSHOODWHFRXUWVjJHQHUDOUHIHUHQFHWR0&5'UDWKHU               FODLPVIDLUO\DSSHDUHGWRUHVWSULPDULO\RQUHVROXWLRQRIWKRVH
WKDQ H[SOLFLWO\ UHIHUHQFLQJ 0&5 ' RU LWV                  FODLPVRUWREHLQWHUZRYHQ>ZLWKIHGHUDOODZ@DQGGLGQRW
SURFHGXUDOODQJXDJHZDVLQVXIILFLHQWWRFRQVWLWXWHDUHDVRQHG               FOHDUO\ DQG H[SUHVVO\ UHO\ RQ DQ LQGHSHQGHQW DQG DGHTXDWH
RSLQLRQIRUSURFHGXUDOGHIDXOWXQGHUVWDWHODZ/RRNLQJWRWKH              VWDWHJURXQGDIHGHUDOFRXUWPD\DGGUHVVWKHSHWLWLRQl,GDW
FLUFXLWFRXUWjVGHFLVLRQRQWKHVHFRQG0&5PRWLRQ                   
IRUJXLGDQFHKHIRXQGWKDW%XUURXJKVjVFODLPVZHUHUHMHFWHG
RQWKHPHULWVUDWKHUWKDQRQSURFHGXUDOGHIDXOW                            7KH6XSUHPH&RXUWmHQFRXUDJH>V@VWDWHFRXUWVWRH[SUHVV
                                                                             SODLQO\LQHYHU\GHFLVLRQSRWHQWLDOO\VXEMHFWWRIHGHUDOUHYLHZ
   ,QKLVUHFRPPHQGDWLRQWKHPDJLVWUDWHMXGJHILUVWUXOHGWKDW              WKHJURXQGVXSRQZKLFKWKHLUMXGJPHQWVUHVWlEXWGRHVQRW
WULDOFRXQVHOZDVLQHIIHFWLYHEHFDXVHKHIDLOHGWRPRYHIRUD                UHTXLUHWKHXVHRISDUWLFXODUODQJXDJHLQHYHU\FDVHDWHYHU\
GLUHFWHGYHUGLFWRIDFTXLWWDORQERWKPXUGHUFKDUJHVDQGWKDW                VWDJHRIUHYLHZLQYROYLQJDVWDWHSULVRQHUjVIHGHUDOFODLP,G
IDLOXUHSUHMXGLFHGKLVFOLHQWEHFDXVHVXFKDUXOLQJZRXOGKDYH               DW   m>:@KHWKHU D VWDWH FRXUW UHVWHG LWV KROGLQJ RQ
FKDQJHGWKHRXWFRPHRIWKHSURFHHGLQJ,QDGGLWLRQKHKHOG                 SURFHGXUDOGHIDXOWWKXVEDUULQJIHGHUDOKDEHDVUHYLHZLVD
WKDW WKH FRPELQHG DFWLRQV RI WKH WULDO FRXUW DQG SURVHFXWRU         TXHVWLRQRIODZWREHUHYLHZHGGHQRYRl&RXFKYsDEH
SHUPLWWHGWKHSURVHFXWRUWRGLVWRUWWKHmWKHWUXHQDWXUHRIWKH              )GWK&LU  8QGHUWKHSURFHGXUDOGHIDXOW
IDFWV DYDLODEOHl WR WKH MXU\ DQG WKH PLVFKDUDFWHUL]DWLRQjV            DQDO\VLVDIHGHUDOFRXUWmPXVWGHWHUPLQHLIDSHWLWLRQHUIDLOHG
HIIHFWRQWKHMXU\jVYHUGLFWUHVXOWHGLQDQXQIDLUWULDO)LQDOO\           WR FRPSO\ ZLWK D VWDWH SURFHGXUDO UXOH DQG LW DOVR PXVW
KH UHMHFWHG SHWLWLRQHUjV FODLPV RI LQHIIHFWLYH DVVLVWDQFH RI          DQDO\]HZKHWKHUWKHVWDWHFRXUWEDVHGLWVGHFLVLRQRQWKHVWDWH
DSSHOODWH FRXQVHO  $V D UHPHG\ WKH PDJLVWUDWH MXGJH                SURFHGXUDOUXOHl6LPSVRQYsRQHV)GWK
UHFRPPHQGHG WKDW WKH GLVWULFW FRXUW JUDQW %XUURXJKVjV                  &LU
DSSOLFDWLRQIRUKDEHDVUHOLHIDQGRUGHUWKH6WDWHWRYDFDWHKLV
FRQYLFWLRQIRUIHORQ\PXUGHU7KHGLVWULFWFRXUWWKHQDGRSWHG                 ,WLVXQGLVSXWHGWKDW%XUURXJKVIDLOHGWRSURSHUO\SUHVHQW
WKHPDJLVWUDWHMXGJHjVUHSRUWDQGUHFRPPHQGDWLRQ                           KLV DUJXPHQWV IRU VWDWH DSSHOODWH UHYLHZ  8QGHU 0&5
                                                                             ' D FRXUW PD\ QRW JUDQW UHOLHI LI WKH GHIHQGDQW
                                                                             SUHVHQWV JURXQGV ZKLFK FRXOG KDYH EHHQ UDLVHG RQ DSSHDO
                                                                             IURPWKHFRQYLFWLRQRUVHQWHQFHRULQDSULRU0&5
                                                                            SURFHHGLQJXQOHVVWKHGHIHQGDQWGHPRQVWUDWHVJRRGFDXVHIRU
        7KH PDJLVWUDWH MXGJH DOVR IRXQG WKDW WKH JRYHUQPHQW IDLOHG WR
HVWDEOLVK %XUURXJKVjV SURFHGXUDO GHIDXOW EHFDXVH LW GLG QRW SURYLGH D FRS\
                                                                             WKH IDLOXUH DQG DFWXDO SUHMXGLFH  ,Q DIILUPLQJ WKH FLUFXLW
RI WKH FLUFXLW FRXUWjV RSLQLRQ GHQ\LQJ WKH VHFRQG PRWLRQ IRU UHOLHI IURP     FRXUWjVUHMHFWLRQRI%XUURXJKVjVVHFRQGPRWLRQIRUUHOLHIIURP
MXGJPHQW