Court Opinion

ID: 2970084
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:03:57.219454+00
Date Added: 2024-06-11T15:01:32.254800
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

6$8/7 67( 0$5,( 75,%( 2)        ;
&+,33(:$ ,1',$16 *5$1'           
75$9(56( %$1' 2) 277$:$           
                                      1R
$1' &+,33(:$ ,1',$16             
.(:((1$: %$< ,1',$1                !
                                  
&20081,7< +$11$+9,//(            
,1',$1 &20081,7< %$<             
0,//6 ,1',$1 &20081,7<           
                  3ODLQWLIIV     
                                  
                                  
/$& 9,(8; '(6(57 %$1' 2)          
/$.( 683(5,25 &+,33(:$            
,1',$16                          
          3ODLQWLII$SSHOOHH     
                                  
6$*,1$: &+,33(:$ ,1',$1           
                                  
75,%( 2) 0,&+,*$1                
                  ,QWHUYHQLQJ     
           3ODLQWLII$SSHOOHH    
                                  
           Y                     
                                  
                                  
s2+1 0 (1*/(5*RYHUQRU         
        'HIHQGDQW$SSHOODQW     1

                           
       6DXOW6WH0DULHHWDOY(QJOHU               1R

         $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV
    1Rn'RXJODV:+LOOPDQ'LVWULFWsXGJH
                      $UJXHGsXQH
             'HFLGHGDQG)LOHG1RYHPEHU
%HIRUH0$57,1&KLHIsXGJH1(/621&LUFXLWsXGJH
             5,&(&KLHI'LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('  .HLWK ' 5REHUWV 2)),&( 2) 7+(
$77251(<*(1(5$/2)0,&+,*$1/277(5<$1'
5$&,1* ',9,6,21 /DQVLQJ 0LFKLJDQ IRU $SSHOODQW
+HQU\ 0 %XIIDOR sU s$&2%621 %8))$/2
6&+2(66/(5 	 0$*18621 6W 3DXO 0LQQHVRWD IRU
$SSHOOHHV21%5,().HLWK'5REHUWV2)),&(2)7+(
$77251(< *(1(5$/ 2) 0,&+,*$1 /DQVLQJ
0LFKLJDQ IRU $SSHOODQW  +HQU\ 0 %XIIDOR 6WHYHQ *
7KRUQH s$&2%621 %8))$/2 6&+2(66/(5 	
0$*18621 6W 3DXO 0LQQHVRWD &RQO\ s 6FKXOWH
0217($8DQG3((%/(62PDKD1HEUDVND0LFKDHO*
3KHODQ 6$*,1$: &+,33(:$ ,1',$1 75,%( 2)
0,&+,*$1 /(*$/ '(3$570(17 0W 3OHDVDQW
0LFKLJDQIRU$SSHOOHHV
                       BBBBBBBBBBBBBBBBB
                           23,1,21
                       BBBBBBBBBBBBBBBBB
  %2<&()0$57,1s5&KLHIsXGJH7KHSODLQWLIIVLQ
WKLV FDVH DUH VHYHQ ,QGLDQ WULEHV ZLWK FDVLQRV RQ WKHLU

    
     7KH +RQRUDEOH :DOWHU +HUEHUW 5LFH &KLHI 8QLWHG 6WDWHV 'LVWULFW
sXGJH IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
     6DXOW6WH0DULHHWDOY(QJOHU               1R        1R              6DXOW6WH0DULHHWDOY(QJOHU       

H[FOXVLYLW\E\SXWWLQJWKHWZRWULEHVZKHUH0*0*UDQGZDV                 0LFKLJDQUHVHUYDWLRQV8QGHUDQDJUHHPHQWWKH\DUHUHTXLUHG
RQsXO\7KHUHIRUH)HEUXDU\EURXJKWWKH6HYHQ7ULEHV
             WR SD\ WKH VWDWH RI 0LFKLJDQ D VXP RI PRQH\ UHSUHVHQWLQJ
H[FOXVLYLW\WRDQHQG                                                   UHYHQXH ORVW E\ WKH VWDWH EHIRUH RWKHU FDVLQRV REWDLQHG WKH
                                                                          ULJKWWRRSHUDWH7KHTXHVWLRQSUHVHQWHGLVZKHQWKH6HYHQ
   7KH 1HZ 7ULEHV FRXOG QRW ODZIXOO\ RSHUDWH HOHFWURQLF            7ULEHVVWRSSHGKDYLQJH[FOXVLYHFDVLQRRSHUDWLQJULJKWV
JDPHVRIFKDQFHXQWLO0LFKLJDQJDYHWKHPSHUPLVVLRQWRGR
VRLQWKHFRPSDFWV7KLVRIFRXUVHUHTXLUHGWKHFRPSDFWVWR                 8QGHUVOLJKWO\GLIIHUHQWFLUFXPVWDQFHVZHKDYHFRQIURQWHG
WDNHHIIHFW3XUVXDQWWRWKHLURZQSODLQWHUPVWKLVKDSSHQHG            WKLVVDPHTXHVWLRQEHIRUH6HH6DXOW6WH0DULHY(QJOHU
RQ)HEUXDU\7KHSDUWLHVGRQRWGLVSXWHWKLVFRQFOXVLRQ               )G  WK &LU  6DXOW 6WH 0DULH ,  %RWK
7KHFRPSDFWV
RQO\EDUULHUWRSHUPLWWLQJWKHLQLWLDWLRQRIDQ\           GLVSXWHV DURVH RXW RI WKH 6HYHQ 7ULEHV
 HYHQ HDUOLHU VXLW
&ODVV,,,JDPLQJZKLFKLQFOXGHVHOHFWURQLFJDPHVRIFKDQFH              DJDLQVW *RYHUQRU (QJOHU IRU IDLOLQJ WR QHJRWLDWH JDPLQJ
VHH  86&  %LL DQG  RQ HOLJLEOH          FRPSDFWVZLWKWKHPLQJRRGIDLWKDVUHTXLUHGE\IHGHUDO
,QGLDQODQGVLVHQDFWLQJWKHRUGLQDQFH$VZHKDYHSRLQWHG             ODZ  7KH SDUWLHV VHWWOHG WKDW  FDVH  7KH VHWWOHPHQW
RXW WZR RI WKH 1HZ 7ULEHV DOUHDG\ KDG GRQH VR                  SURYLGHGWKDW0LFKLJDQZRXOGHQWHULQWRJDPLQJFRPSDFWV
$GGLWLRQDOO\WKLVZDVVXIILFLHQWWRFRPSO\ZLWKIHGHUDOODZ             ZLWKWKH6HYHQ7ULEHV,QH[FKDQJHWKH6HYHQ7ULEHVDJUHHG
ZKLFKDOORZV&ODVV,,,JDPLQJLILWLV$DXWKRUL]HGE\DQ              WRPDNHVHPLDQQXDOSD\PHQWVRIHLJKWSHUFHQWRIWKHQHWZLQ
RUGLQDQFH RU UHVROXWLRQ     % ORFDWHG LQ D 6WDWH WKDW   IURPWKHLUFDVLQRV
HOHFWURQLFJDPHVRIFKDQFHVRORQJDVWKH
SHUPLWVVXFKJDPLQJDQG&FRQGXFWHGLQFRQIRUPDQFH               6HYHQ 7ULEHV FROOHFWLYHO\ HQMR\HG WKH H[FOXVLYH ULJKW WR
ZLWK D 7ULEDO6WDWH FRPSDFW     ,G  G          RSHUDWHWKRVHW\SHVRIJDPHVZLWKLQWKHVWDWH7KHGLVWULFW
%HJLQQLQJ )HEUXDU\  WKH RQO\ WKLQJ SURKLELWLQJ WKH WZR         FRXUWHQWHUHGDFRQVHQWMXGJPHQWWRWKLVHIIHFWRQ$XJXVW
WULEHVZHKDYHLGHQWLILHGIURPRSHUDWLQJHOHFWURQLFJDPHVRI              6DXOW6WH0DULH,GHFLGHGZKHQWKHH[FOXVLYHULJKW
FKDQFH ZDV WKH WULEHV  :H DUH VDWLVILHG WKDW WKH\ WKXV         WHUPLQDWHGLQOLJKWRI0LFKLJDQ
VOHJDOL]DWLRQRIFDVLQRV
SRVVHVVHGWKHULJKWWRGRVRDVRIWKDWGDWH                            LQGRZQWRZQ'HWURLW:HKHOGWKHQWKDWWKHSD\PHQWVPXVW
                                                                          FRQWLQXH XQWLO WKH VWDWH JUDQWHG VRPHRQH D OLFHQVH IRU D
  ,Q VXPPDU\ 6DXOW 6WH 0DULH , LQVWUXFWV WKDW WKHVH WZR        'HWURLW FDVLQR UHJDUGOHVV RI ZKHQ VXFK D FDVLQR PLJKW
HQWLWLHVSRVVHVVHGWKHULJKWWRRSHUDWHJDPHVRIFKDQFHRQFH              XOWLPDWHO\RSHQLWVGRRUV6HHLGDW
WKH\KDGVDWLVILHGDOOWKHFRQWUDFWXDODQGOHJDOSUHUHTXLVLWHV
IRURIIHULQJWKRVHJDPHVWRWKHSXEOLF2QFHDQRWKHUHQWLW\                ,Q WKH PHDQWLPH 0LFKLJDQ QHJRWLDWHG JDPLQJ FRPSDFWV
SRVVHVVHG WKDW ULJKW WKH 6HYHQ 7ULEHV VWRSSHG RZLQJ               ZLWKIRXUPRUH,QGLDQWULEHVWKH1RWWDZDVHSSL+XURQ%DQG
0LFKLJDQWKHGLVSXWHGSD\PHQWV7KHGLVWULFWFRXUWFRUUHFWO\             RI3RWWDZDWRPLWKH/LWWOH5LYHU%DQGRI2WWDZD,QGLDQVWKH
GHQLHG*RYHUQRU(QJOHU
VPRWLRQ                                          3RNDJRQ%DQGRI3RWWDZDWRPLDQGWKH/LWWOH7UDYHUVH%D\
                                                                          %DQGRI2GDZD,QGLDQV7KH6HYHQ7ULEHVQRZFODLPWKDW
    sXGJPHQW$)),50('                                                    WKHVHFRPSDFWV
HIIHFWLYHGDWH)HEUXDU\HQGHGWKHLU
                                                                          SD\PHQW REOLJDWLRQ D OLWWOH PRUH WKDQ ILYH PRQWKV EHIRUH
                                                                          0LFKLJDQDZDUGHG0*0*UDQGWKHILUVW'HWURLWOLFHQVHRQ
                                                                          sXO\  RI WKH VDPH \HDU  0RYLQJ WR FRPSHO WKH 6HYHQ
                                                                          7ULEHV
 FRPSOLDQFH ZLWK WKH FRQVHQW MXGJPHQW *RYHUQRU
                                                                          (QJOHUFRXQWHUVWKDWWKHVHQHZFRPSDFWVKDYHQRSUDFWLFDO
                                                                          HIIHFWRQZKDWWKH6HYHQ7ULEHVPXVWSD\+HVWUHVVHVRXU
                                                                          SULRU VWDWHPHQW WKDW WKH >6HYHQ@ 7ULEHV PDLQWDLQ WKHLU
     6DXOW6WH0DULHHWDOY(QJOHU              1R       1R              6DXOW6WH0DULHHWDOY(QJOHU         

H[FOXVLYHULJKWXQWLODQRWKHUJURXSUHFHLYHVDFDVLQROLFHQVH         LOOXPLQDWLRQ RI WKH SKUDVH
V PHDQLQJ FDQ DSSO\ KHUH ZH
LGDQGQRWHVWKDWQRQHRIWKH1HZ7ULEHVDFWXDOO\OLFHQVHG            FRQFXUZLWKWKHGLVWULFWFRXUWWKDWLWVKRXOGEHKRQRUHGDVWKH
JDPLQJRQWKHLUUHVHUYDWLRQVXQWLODIWHUsXO\KDGSDVVHG            ODZRIWKHFDVH6HH&RQVROLGDWLRQ&RDO&RY0F0DKRQ
7KHGLVWULFWFRXUWGHQLHG*RYHUQRU(QJOHU
VPRWLRQ                     )GWK&LU
  :HDJUHHZLWKWKHGLVWULFWFRXUWWKDWOLFHQVHVSHUVHGRQRW            :H ILQG LW KHOSIXO WR GHILQH H[FOXVLYH ULJKW WR RSHUDWH
EHDUXSRQWKLVFDVH7KHOLFHQVHVLQ6DXOW6WH0DULH,ZHUH           XVLQJWZRGLVWLQFWLQTXLULHV)LUVWZKDWH[DFWO\LVWKHULJKWWR
GLVSRVLWLYH EHFDXVH WKH\ RIILFLDOO\ FRQIHUUHG 0LFKLJDQ
V           RSHUDWH"$QGVHFRQGZKHQGRHVDQHQWLW\EHVLGHVWKH6HYHQ
SHUPLVVLRQ WR FRQGXFW JDPLQJ DFWLYLWLHV LQVLGH WKH VWDWH         7ULEHV DOVR KDYH WKDW ULJKW"  6DXOW 6WH 0DULH , H[SUHVVO\
ERXQGDULHV7KLVLVQRWWKHIXQFWLRQRIWKHOLFHQVHVLQYROYHG          DGGUHVVHVWKHVHFRQGRIWKHVHTXHVWLRQVoWKH6HYHQ7ULEHV

LQWULEDOJDPLQJZKLFKEDVLFDOO\VHUYHWRLGHQWLI\FDVLQR          H[FOXVLYLW\HQGVZKHQDQRWKHUJURXSSRVVHVV>HV@FRQWURO>V@
HPSOR\HHV ZKR KDYH SDVVHG D EDFNJURXQG FKHFN VHH             RUXVH>V@WKHULJKWVHH6DXOW6WH0DULH,)GDW
86&E)DQGFDQGLGHQWLI\            oEXWDQVZHUVWKHILUVWZLWKOHVVSUHFLVLRQ1HYHUWKHOHVVZH
HDFK FDVLQR
V JHRJUDSKLF ORFDWLRQ VHH  86&                  GHWHUPLQHG WKHUH WKDW WKH 6HYHQ 7ULEHV
 H[FOXVLYH ULJKW WR
 G$LL DQG E  )XUWKHUPRUH WKH WULEDO       RSHUDWH HOHFWURQLF JDPHV RI FKDQFH HQGHG RQ WKH GDWH WKDW
JDPLQJOLFHQVHVDUHLVVXHGE\WKH1HZ7ULEHVWKHPVHOYHVQRW            0LFKLJDQ LVVXHG D OLFHQVH EHFDXVH DW WKDW LQVWDQW DQRWKHU
E\WKHVWDWH7KXVWKHWULEDOJDPLQJOLFHQVHUHTXLUHPHQWVDUH         HQWLW\ZRXOGSRVVHVVWKHVDPHULJKW3RVVHVVLRQZDVHQRXJK
FRPSDUDEOHWRWKHUHJXODWRU\FRQGLWLRQVVWDWHOLFHQVHGFDVLQRV          6HHLG
PXVWPHHWDIWHUWKHLUOLFHQVHVDUHLVVXHG*RYHUQRU(QJOHU
V
HTXDWLRQRIVWDWHOLFHQVHVZLWKWULEDOJDPLQJOLFHQVHVDPRXQWV             6R ZKDW LV WKH QDWXUH RI D ULJKW"  /DFNLQJ RWKHU OHJDO
WRPHUHOLQJXLVWLFVOLJKWRIKDQGlDQGLVQRWGLVSRVLWLYH            DXWKRULW\ZHWXUQWRGLFWLRQDU\GHILQLWLRQVRImULJKWl6HH
                                                                        %/$&.
6 /$: ',&7,21$5< WK HG  D SRZHU
   7KH GLVWULFW FRXUW FRUUHFWO\ UHFRJQL]HG WKDW *RYHUQRU          SULYLOHJHRULPPXQLW\VHFXUHGWRDSHUVRQE\ODZ2;)25'
(QJOHUjV PRWLRQ FRPSHOV DQRWKHU FRQVWUXFWLRQ RI WKH          (1*/,6+ ',&7,21$5<GHGDMXVWLILDEOHFODLPRQ
FRQVHQWMXGJPHQW:HGRVRGHQRYR+XJXOH\Y*HQHUDO                OHJDORUPRUDOJURXQGVWRKDYHRUREWDLQVRPHWKLQJRUWRDFW
0RWRUV &RUS  )G   WK &LU   &RQVHQW      LQDFHUWDLQZD\7KHVHGHILQLWLRQVSODFHERWKSDUWLHVRQDQ
MXGJPHQWVDUHELQGLQJFRQWUDFWVVXEMHFWWRWKHRUGLQDU\UXOHV          HTXDOIRRWLQJ7KXVWKH6HYHQ7ULEHVDQGWKHZLQQLQJELGGHU
RIFRQWUDFWXDOLQWHUSUHWDWLRQ%URZQY1HHE)G            LQ'HWURLWZRXOGILQGWKHPVHOYHVRQDQHTXDOIRRWLQJ7KLV
 WK &LU   %HFDXVH WKLV FRQWUDFW ZDV IRUPHG LQ     FDVHWKXVUHGXFHVWRZKHQRQHRIWKH1HZ7ULEHVFDQEHVDLG
0LFKLJDQ ZH LQWHUSUHW LW XQGHU 0LFKLJDQ ODZ  6DZ\HU Y       WRKDYHDWWDLQHGDQHTXLYDOHQWSRVLWLRQ:HILQGWKDWWZRRI
$UXP)GWK&LU7KHSULPDU\JRDO             WKHPWKH/LWWOH5LYHU%DQGRI2WWDZD,QGLDQVDQGWKH/LWWOH
LQWKHFRQVWUXFWLRQRULQWHUSUHWDWLRQRIDQ\FRQWUDFWLVWRKRQRU       7UDYHUVH%D\%DQGRI2GDZD,QGLDQVDWWDLQHGLWRQ)HEUXDU\
WKH LQWHQW RI WKH SDUWLHV  5DVKHHG Y &KU\VOHU &RUS    :HKLJKOLJKWWKDWGDWHIRUWZRUHDVRQV)LUVWWKHVHWULEHV

1:GQ0LFK:HORRNIRUWKHLQWHQWRI           WULEDOVWDWHFRPSDFWVWKHQEHFDPHYDOLG6HFRQGWKHWULEHV
WKHSDUWLHVLQWKHZRUGVXVHGLQWKHLQVWUXPHQW0LFKLJDQ              KDG DOVR SDVVHG SURSHU FRPSUHKHQVLYH JDPLQJ UHJXODWRU\
&KDQGHOLHU&RY0RUVH1:0LFKDQG              RUGLQDQFHV ZKLFK ZHUH DSSURYHG E\ WKH FKDLUPDQ RI WKH
WKHNH\ZRUGVZHPXVWH[DPLQHUHPDLQH[FOXVLYHULJKWWR                1DWLRQDO,QGLDQ*DPLQJ&RPPLVVLRQDVWKH,QGLDQ*DPLQJ
RSHUDWH+RZHYHUWKHFRQWLQXLQJHQIRUFHPHQWRIDFRQVHQW             5HJXODWRU\$FW86&oUHTXLUHV6HHHJ
MXGJPHQWLVULJKWIXOO\FRQVLGHUHGDQH[WHQVLRQRIWKHRULJLQDO          )HG5HJsDQ7KH)HEUXDU\
ODZVXLW  7KXV WR WKH H[WHQW WKDW 6DXOW 6WH 0DULH ,
V       DJJUHJDWLRQ RI WKHVH WZR HYHQWV HQGHG WKH 6HYHQ 7ULEHV