Court Opinion

ID: 2969679
Source: CourtListenerOpinion
Date Created: 2015-09-22 15:54:53.228445+00
Date Added: 2024-06-11T11:36:47.256460
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

 :,//,$0 $ &2+1                 ;
          3ODLQWLII$SSHOODQW     
                                   
                                     1R
            Y                     
                                    !
                                   
 1$7,21$/ %2$5' 2) 75,$/           
 $'92&$&< s2+1 '2(6  
 0HPEHUVRIWKH5HYLHZ             
 6WDQGDUGV&RPPLWWHH              
         'HIHQGDQWV$SSHOOHHV 
                                   
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
   1RnsRQ3KLSSV0F&DOOD'LVWULFWsXGJH
                  6XEPLWWHG2FWREHU
            'HFLGHGDQG)LOHG1RYHPEHU
  %HIRUH.(,7+68+5+(,15,&+DQG&/$<&LUFXLW
                      sXGJHV

    
     7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl
ILOHG RQ 1RYHPEHU     2Q sDQXDU\   WKH FRXUW GHVLJQDWHG
WKH RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ

                                  
       &RKQY1DWjO%GRI7ULDO                         1R
        $GYRFDF\HWDO

                       BBBBBBBBBBBBBBBBB
                            &2816(/
21 %5,()  :LOOLDP $ &RKQ &2+1 /$: ),50
&RUGRYD7HQQHVVHHIRU$SSHOODQW*DU\.6PLWK60,7+
6$%%$7,1, 	 0F/($5< 0HPSKLV 7HQQHVVHH IRU
$SSHOOHHV
                       BBBBBBBBBBBBBBBBB
                           23,1,21
                       BBBBBBBBBBBBBBBBB
  68+5+(,15,&+ &LUFXLW sXGJH  3ODLQWLII :LOOLDP $
&RKQDSSHDOVVXPPDU\MXGJPHQWIRU'HIHQGDQWV1DWLRQDO
%RDUGRI7ULDO$GYRFDF\DQGsRKQ'RHVWRPHPEHUVRI
WKH ERDUGjV 5HYLHZ 6WDQGDUGV &RPPLWWHH FROOHFWLYHO\
m1%7$l  7KH VXLW VWHPPHG IURP 1%7$jV GHQLDO RI
3ODLQWLIIjV DSSOLFDWLRQ IRU D &LYLO 7ULDO $GYRFDF\
&HUWLILFDWLRQ3ODLQWLIIDOOHJHGWKLVZDVDYLRODWLRQRIYDULRXV
FRQVWLWXWLRQDOULJKWV 86&DQGDQWLWUXVWODZV
FRQVWLWXWHGDFRQVSLUDF\DQGDQLQWHQWLRQDOLQWHUIHUHQFHZLWK
FRQWUDFW XQGHU VWDWH ODZ   3ODLQWLII VRXJKW GDPDJHV DQG
LQMXQFWLYH UHOLHI  3ODLQWLII DVVHUWV WKH FRXUW HUUHG EHFDXVH
DPRQJRWKHUWKLQJVLWFRQVLGHUHGLPSHUPLVVLEOHIDFWRUVZKHQ
GHWHUPLQLQJ 1%7$ ZDV QRW D TXDVLJRYHUQPHQWDO DJHQF\
XQGHU   DQG WKDW WKH DZDUG RI DWWRUQH\ IHHV ZDV
LPSURSHU:H$)),50
                                   ,
 1%7$PRYHGWRGLVPLVVWKHFRPSODLQWLQLWVHQWLUHW\IRU
IDLOXUHWRVWDWHFODLPVRQZKLFKUHOLHIFDQEHJUDQWHG)HG5
&LY3E7KHFRXUWJUDQWHGWKHPRWLRQWRGLVPLVVDV
WRWKHDQWLWUXVWFODLPDQGWKHVWDWHODZFODLPIRULQWHQWLRQDO
LQWHUIHUHQFH ZLWK FRQWUDFW EHFDXVH WKH FRPSODLQW GLG QRW

    
     3ODLQWLII LV DQ DWWRUQH\ DQG LV SURFHHGLQJ   574 80 RQ DSSHDO
1R                    &RKQY1DWjO%GRI7ULDO        
                                        $GYRFDF\HWDO

VSHFLI\DQ\IDFWXDOEDVLVIRUWKHFODLPVVRDVWRSXW1%7$RQ
QRWLFH
  1%7$WKHQVRXJKWVXPPDU\MXGJPHQWDVWRDOOUHPDLQLQJ
FODLPVEHFDXVH3ODLQWLIIIDLOHGWRHVWDEOLVKDGLVSXWHGLVVXHRI
IDFW,QVXSSRUWRILWVPRWLRQ1%7$DVVHUWHGWKDW3ODLQWLII
HQWHUHGLQWRDUHOHDVHDQGFRYHQDQWQRWWRVXHDQGDJUHHGWR
LQGHPQLI\1%7$DQGVXSSRUWHGLWVPRWLRQZLWKDIILGDYLWV
DQGRWKHUHYLGHQFHLQFOXGLQJWKHDJUHHPHQWRIWKHSDUWLHV
1%7$DOVRDUJXHGWKDWDVDSULYDWHHQWLW\LWZDVQRWDVWDWH
DFWRU IRU SXUSRVHV RI   DQG WKDW 3ODLQWLII VKRZHG QR
GDPDJHV  :KHQ 1%7$ ILOHG LWV DQVZHU LW DVVHUWHG D
FRXQWHUFODLPIRUDWWRUQH\IHHVSXUVXDQWWRLWVDJUHHPHQWZLWK
3ODLQWLII
  3ODLQWLII VRXJKW VXPPDU\ MXGJPHQW RQ KLV UHTXHVW IRU
LQMXQFWLYH UHOLHI WR RUGHU 1%7$ WR LVVXH WKH FHUWLILFDWLRQ
DUJXLQJWKDW1%7$ZDVDTXDVLJRYHUQPHQWDODJHQF\XQGHU

   7KHGLVWULFWFRXUWFRQFOXGHG1%7$ZDVQRWDVWDWHDFWRUIRU
SXUSRVHVEHFDXVHLWLVDSULYDWHHQWLW\DQG3ODLQWLII
RIIHUHGQRVXSSRUWIRUKLVDOOHJDWLRQVWKDW1%7$SHUIRUPHG
DIXQFWLRQWUDGLWLRQDOO\SHUIRUPHGH[FOXVLYHO\E\WKHVWDWHRU
WRVKRZDV\PELRWLFUHODWLRQVKLSEHWZHHQ1%7$DQGWKHVWDWH
VRWKDW1%7$jVFRQGXFWVXEMHFWHGLWWROLDELOLW\DVD
TXDVLJRYHUQPHQWDODJHQF\7KHFRXUWDOVRIRXQG3ODLQWLII
GLVFORVHG DQG VXIIHUHG QR GDPDJHV DV D UHVXOW RI 1%7$jV
DFWLRQV7KHFRXUWWKHUHIRUHJUDQWHGVXPPDU\MXGJPHQWWR
1%7$ RQ DOO FODLPV DQG GHQLHG 3ODLQWLIIjV PRWLRQ IRU
VXPPDU\ MXGJPHQW  $W WKLV WLPH WKH FRXUW DOVR GHQLHG
ZLWKRXW SUHMXGLFH 1%7$jV FRXQWHUFODLP IRU DWWRUQH\ IHHV
EHFDXVHWKHUHZDVQRVXSSRUWLQJGRFXPHQWDWLRQ
   7KHSDUWLHVVXEVHTXHQWO\ILOHGFURVVPRWLRQVIRUVXPPDU\
MXGJPHQWRQWKHFRXQWHUFODLPIRUDWWRUQH\IHHV1%7$ILOHG
DIILGDYLWV UHJDUGLQJ WKH UHDVRQDEOHQHVV RI WKH IHHV DQ
LWHPL]HGVWDWHPHQWRIVHUYLFHVUHQGHUHGDQGWKHDJUHHPHQWRI
WKH SDUWLHV  3ODLQWLII ILOHG DIILGDYLWV UHJDUGLQJ WKH
     &RKQY1DWjO%GRI7ULDO                       1R       1R                      &RKQY1DWjO%GRI7ULDO          
      $GYRFDF\HWDO                                                                                             $GYRFDF\HWDO

XQUHDVRQDEOHQHVVRIWKHIHHV1%7$DVVHUWHGLWZDVHQWLWOHG               SXUSRVHV RU D SHUVRQ WKDW FDQ EH VXHG IRU DOOHJHG
WRWKHDZDUGRIIHHVXQGHUWKHDJUHHPHQWRIWKHSDUWLHV             FRQVWLWXWLRQDOYLRODWLRQV6HH)ODJJ%URV,QFY%URRNV
)HG5&LY3EHFDXVH3ODLQWLIIjVVXLWZDVIULYRORXV           86(OOLVRQY*DUEDULQR)G
XQUHDVRQDEOH DQG ZLWKRXW IRXQGDWLRQ DQG   86&           WK&LU%LHUY)OHPLQJ)G
EHFDXVHLWZDVWKHSUHYDLOLQJSDUW\                              WK &LU   )LQDOO\ WKH FRXUW SURSHUO\ IRXQG WKDW
                                                                         3ODLQWLIIGLGQRWGLVFORVHHYLGHQFHRIFODLPHGGDPDJHVIRUDQ\
  7KHFRXUWJUDQWHG1%7$jVPRWLRQIRUVXPPDU\MXGJPHQW                   RIKLVFODLPV
DV WR WKH IHH DZDUG EDVHG RQ WKH DJUHHPHQW RI WKH SDUWLHV
5XOHDQGKDYLQJIRXQGWKHDWWRUQH\IHHVDQGFRVWV                                             ,,,
UHDVRQDEOH  7KH FRXUW VWDWHG IRU WKH UHFRUG WKDW 3ODLQWLII
VKRXOGQRWKDYHUHFHLYHGFHUWLILFDWLRQIURP1%7$EDVHGRQ                   3ODLQWLII DOVR DUJXHV WKDW WKH GLVWULFW FRXUW HUUHG ZKHQ LW
WKHFRXUWjVSULRUH[SHULHQFHZLWK3ODLQWLIIDQGWKDWWRKDYH             DZDUGHG1%7$DWWRUQH\IHHV7KLV&RXUWUHYLHZVDGLVWULFW
GRQHVRZRXOGKDYHEHHQmDGLVVHUYLFHWRWKHFRPPXQLW\l                 FRXUWjVDZDUGRIDWWRUQH\IHHVIRUDQDEXVHRIGLVFUHWLRQ6HH
s$   7KH FRXUW DOVR VWDWHG WKH SUHVHQW FDVH ZDV       :LOVRQ6LPPRQVY/DNH&R6KHULIIjV'HSW)G
HJUHJLRXVYH[DWLRXVDQGmFRXOGEHRQHLQZKLFKWKHPDWWHU              WK&LU3ODLQWLIIYROXQWDULO\FRYHQDQWHGQRWWR
ZDV UHIHUUHG WR WKH %RDUG RI 3URIHVVLRQDO 5HVSRQVLELOLW\l        VXH DQG WR SD\ WKH FRVWV WR GHIHQG DQ\ VXLW FRQFHUQLQJ KLV
s$                                                                DSSOLFDWLRQ   0RUHRYHU DQ DZDUG RI DWWRUQH\ IHHV LV DOVR
                                                                         DYDLODEOHWRDSDUW\SUHYDLOLQJLQDFLYLOULJKWVVXLWSXUVXDQWWR
                                 ,,                                     DQGWKHOHJDOEDVLVRI3ODLQWLIIjVFODLPZDVVRZLWKRXW
                                                                         PHULWWKDWWKHFRXUWUHDVRQDEO\IRXQG3ODLQWLIIjVFODLPWREH
  3ODLQWLIIDVVHUWVWKDWWKHGLVWULFWFRXUWHUUHGZKHQLWJUDQWHG        IULYRORXV7KHUHZDVQRDEXVHRIGLVFUHWLRQ
VXPPDU\MXGJPHQWWR'HIHQGDQWDQGGHQLHGKLVPRWLRQIRU
VXPPDU\MXGJPHQW7KLV&RXUWUHYLHZVGHQRYRDJUDQWRI                   )LQDOO\'HIHQGDQWUHTXHVWVDWWRUQH\jVIHHVDQGH[SHQVHVIRU
VXPPDU\MXGJPHQW6HH.OHSSHUY)LUVW$P%DQN)G               GHIHQGLQJDIULYRORXVDQGYH[DWLRXVDSSHDO7KLVUHOLHIPD\
WK&LU6XPPDU\MXGJPHQWLVSURSHU                 EH JUDQWHG RQ D VHSDUDWHO\ ILOHG PRWLRQ DQG UHDVRQDEOH
ZKHQmWKHUHLVQRJHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQG              RSSRUWXQLW\IRU3ODLQWLIIWRUHVSRQG6HH)HG5$SS3
WKDWWKHPRYLQJSDUW\LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURI
ODZ  )HG 5 &LY 3 F  ,Q UHVSRQVH WR D PRWLRQ IRU     $)),50('
VXPPDU\ MXGJPHQW WKH QRQPRYDQW PD\ QRW UHVW RQ KLV
SOHDGLQJVEXWPXVWFRPHIRUZDUGZLWKIDFWVGHPRQVWUDWLQJ
WKHUH LV D JHQXLQH LVVXH RI PDWHULDO IDFW IRU WULDO  6HH
$QGHUVRQ Y /LEHUW\ /REE\ ,QF  86  
.OHSSHU)GDW
   6XPPDU\ MXGJPHQW ZDV DSSURSULDWH EHFDXVH 3ODLQWLIIjV
EULHILQUHVSRQVHWR1%7$jVPRWLRQZKLFKZDVXQVXSSRUWHG
E\DQ\DIILGDYLWVRURWKHUHYLGHQFHGLGQRWFUHDWHDJHQXLQH
LVVXHRIPDWHULDOIDFW,QDGGLWLRQWKHFRXUWZDVFRUUHFWWR
FRQFOXGH1%7$DVDSULYDWHHQWLW\LVQRWDVWDWHDFWRUIRU