Court Opinion

ID: 2969881
Source: CourtListenerOpinion
Date Created: 2015-09-22 15:59:26.920282+00
Date Added: 2024-06-11T11:43:26.646047
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
    3RUWHUILHOGY%HOO                     1R                   3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

                                                                  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

  7KHUHIRUH FRQWUDU\ WR WKH PDMRULW\ , ZRXOG GHQ\                    )LOH 1DPH DS

5HVSRQGHQWjVPRWLRQWRGLVPLVVDQGZRXOGSURFHHGZLWKWKH
PDWWHU
                                                             81,7('67$7(6&28572)$33($/6
                                                                              )257+(6,;7+&,5&8,7
                                                                                BBBBBBBBBBBBBBBBB

                                                              6,'1(< 3257(5),(/'              ;
                                                                      3HWLWLRQHU$SSHOODQW     
                                                                                                
                                                                                                  1R
                                                                         Y                     
                                                                                                 !
                                                                                                
                                                              5,&.< %(//:DUGHQ               
                                                                       5HVSRQGHQW$SSHOOHH 
                                                                                               1
                                                                    $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                 IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
                                                                1RnsDPHV'7RGG&KLHI'LVWULFWsXGJH
                                                                           'HFLGHGDQG)LOHGsXO\
                                                               %HIRUH1255,6%$7&+(/'(5DQG&/$<&LUFXLW
                                                                                   sXGJHV
                                                                           BBBBBBBBBBBBBBBBBBBBBBBBBBB
                                                                           0(025$1'8023,1,21
                                                                          BBBBBBBBBBBBBBBBBBBBBBBBBBBB
                                                               1255,6sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK
                                                             %$7&+(/'(5sMRLQHG&/$<sSSGHOLYHUHGD
                                                             VHSDUDWHGLVVHQWLQJRSLQLRQ
                                                                $/$1(1255,6&LUFXLWsXGJH,QWKLVFDSLWDOFDVHWKH
                                                             6WDWHRI7HQQHVVHHUHSUHVHQWLQJUHVSRQGHQW5LFN\%HOOWKH
                                                             ZDUGHQ RI WKH 5LYHUEHQG 0D[LPXP 6HFXULW\ )DFLOLW\ KDV
                                                             ILOHG D PRWLRQ WR GLVPLVV D QXPEHU RI FODLPV FHUWLILHG DV

                                                                                             
     3RUWHUILHOGY%HOO                               1R        1R                               3RUWHUILHOGY%HOO       

DSSHDODEOH E\ WKH GLVWULFW FRXUW SXUVXDQW WR  86&               PDWWHUDJUHHWKDWWKHSHWLWLRQVKRXOGKDYHEHHQUHVROYHG
F7KH6WDWHWDNHVWKHSRVLWLRQWKDWWKHGLVWULFWFRXUW             LQDGLIIHUHQWPDQQHURUWKDWWKHLVVXHVSUHVHQWHGZHUH
YLRODWHGWKHUHTXLUHPHQWVRI6ODFNY0F'DQLHO86                 mµDGHTXDWH WR GHVHUYH HQFRXUDJHPHQW WR SURFHHG
ZKHQLWFHUWLILHGFODLPVWKDWLWKDGGHFLGHGDGYHUVHO\               IXUWKHUjl  %DUHIRRW  86 DW  DQG Q
WR SHWLWLRQHU RQ SURFHGXUDO JURXQGV  :KLOH ZH GHQ\ WKH             mVXP>PLQJ@XSlWKHmµVXEVWDQWLDOVKRZLQJjlVWDQGDUG
6WDWHjVPRWLRQWRGLVPLVVZHUHPDQGWKLVFDXVHWRWKHGLVWULFW
FRXUW WR SHUPLW LW WR PDNH WKH NLQG RI LQGLYLGXDOL]HG             ,GDWDOWHUDWLRQLQ6ODFN$OWKRXJKQRWDGGUHVVHGE\
GHWHUPLQDWLRQDVWRHDFKSURFHGXUDOO\GHIDXOWHGFODLPWKDWZH              WKH &RXUW LQ 6ODFN OLNHO\ EHFDXVH 6ODFN GLG QRW LQYROYH D
EHOLHYH6ODFNUHTXLUHV                                                    FDSLWDOPDWWHULWLVLPSRUWDQWWRQRWH%DUHIRRWjVFRPPDQG
                                                                           WKDWm>L@QDFDSLWDOFDVHWKHQDWXUHRIWKHSHQDOW\LVDSURSHU
   %HIRUHSURFHHGLQJZHPXVWILUVWGHFLGHZKHWKHUWKLVFRXUW              FRQVLGHUDWLRQLQGHWHUPLQLQJZKHWKHUWRLVVXHDFHUWLILFDWHRI
VKRXOG UHYLHZ FKDOOHQJHV WR WKH JUDQW RI D FHUWLILFDWH RI         >DSSHDODELOLW\@>@l%DUHIRRW86DWZKLFK,
DSSHDODELOLW\RUVLPSO\GHFLGH WKHFHUWLILHGFODLPVRQWKHLU              ILQGQROHVVFRQWUROOLQJWKDQ%DUHIRRWjVRWKHUFRPPDQGVXSRQ
PHULWV$VWKH&RXUWRI$SSHDOVIRUWKH6HYHQWK&LUFXLWKDV               ZKLFKWKH6XSUHPH&RXUWUHOLHGLQ6ODFN
QRWHG D FHUWLILFDWH RI DSSHDODELOLW\ HYHQ LI LPSURYLGHQWO\
JUDQWHG YHVWV MXULVGLFWLRQ LQ WKH FRXUW RI DSSHDOV  8QLWHG         ,QWKHPDWWHUDWKDQGWKHGLVWULFWFRXUWQRWHGLQLWVRUGHU
6WDWHV Y 0DUFHOOR  )G   WK &LU           GHQ\LQJ 5HVSRQGHQWjV PRWLRQ IRU UHFRQVLGHUDWLRQ RI WKH
8QGHU QRUPDO FLUFXPVWDQFHV FRQVLGHUDWLRQV RI MXGLFLDO                FHUWLILFDWH RI DSSHDODELOLW\ WKDW LW ZDV DZDUH RI 6ODFNjV
HFRQRP\ ZLOO GLVFRXUDJH UHYLHZ RI FHUWLILFDWHV RI                    UHTXLUHPHQWV EXW WKDW WKH FRXUW ZDV DOVR RI WKH EHOLHI WKDW
DSSHDODELOLW\ WKH GLVWULFW FRXUW ZLOO KDYH DOUHDG\ LQYHVWHG        mFHUWLILFDWHVRIDSSHDODELOLW\VKRXOGQRWEHXQGXO\UHVWULFWHG
VXEVWDQWLDOWLPHLQWKHFHUWLILFDWLRQSURFHVVWKHSDUWLHVPD\             LQGHDWKSHQDOW\FDVHVl6HH3RUWHUILHOGY%HOO1R
KDYHDOUHDG\EULHIHGWKHPHULWVRIWKHFODLPVDQGUHYLHZE\               7RDW:'7HQQ)HE2UGHU'HQ\LQJ0RWLRQ
WKLVFRXUWZRXOGQRWRQO\GXSOLFDWHWKHGLVWULFWFRXUWjVHIIRUWV          IRU5HFRQVLGHUDWLRQRI&HUWLILFDWHRI$SSHDODELOLW\,QGHHG
LQ FDSLWDO FDVHV VXFK DV WKH FDVH VXE MXGLFH LW ZLOO IXUWKHU   WKHGLVWULFWFRXUWjVGHFLVLRQZDVLQNHHSLQJZLWK6ODFNDQG
GHOD\DQDOUHDG\OHQJWK\SURFHVV,QWKLVFDVHKRZHYHUQRQH             %DUHIRRWDQGLQP\RSLQLRQUHPDQGLQJWKHPDWWHUEDFNWR
RIWKHVHUHDVRQVLVSUHVHQW7KHSDUWLHVKDYHQRWVXEPLWWHG               WKHGLVWULFWFRXUWIRUIXUWKHUFRQVLGHUDWLRQXQGHU6ODFNVHUYHV
PHULWV EULHIV WR WKLV FRXUW DQG WKH GLVWULFW FRXUW KDV QRW       QRXVHIXOSXUSRVHEXWWRXQGHUPLQHWKHFRXUWjVGHFLVLRQWR
HQJDJHG LQ DQ\ LQGLYLGXDOL]HG DVVHVVPHQW RI ZKHWKHU                 DSSO\6ODFNOLEHUDOO\LQDFDSLWDOFDVH$JDLQDOWKRXJK6ODFN
SXUVXDQWWR6ODFNmMXULVWVRIUHDVRQZRXOGILQGLWGHEDWDEOH              PD\ QRW VWDWH WKDW LW VKRXOG EH DSSOLHG OLEHUDOO\ LQ FDSLWDO
ZKHWKHUWKHGLVWULFWFRXUWZDVFRUUHFWLQLWVSURFHGXUDOUXOLQJl          FDVHV%DUHIRRWoWKHFDVHXSRQZKLFK6ODFNUHOLHVDQG
6ODFN  86 DW   8QGHU WKHVH FLUFXPVWDQFHV ZH            LVEDVHGoFOHDUO\VWDWHVWKDWWKHQDWXUHRIWKHSHQDOW\VKRXOG
EHOLHYHDUHYLHZRIWKHGLVWULFWFRXUWjVGHFLVLRQLVDSSURSULDWH          EHFRQVLGHUHGZKHQLVVXLQJDFHUWLILFDWHRIDSSHDODELOLW\6HH
LIRQO\WRSURYLGHJXLGDQFHWRGLVWULFWFRXUWVIDFHGZLWKWKH              %DUHIRRW86DW6HYHUDORIRXUVLVWHUFLUFXLWVZKLFK
WDVNRIFHUWLI\LQJFODLPVIRUDSSHDO                                      KDYHUHYLHZHGFHUWLILFDWHVRIDSSHDODELOLW\LQFDSLWDOFDVHVLQ
                                                                           WKHDIWHUPDWKRI6ODFNKDYHOLNHZLVHFRQVLGHUHGWKHQDWXUHRI
  6LQFH WKH HQDFWPHQW RI WKH $QWLWHUURULVP DQG (IIHFWLYH           WKHSHQDOW\LQYROYHGDQGKDYHWKXVDSSOLHGWKH6ODFNVWDQGDUG
'HDWK3HQDOW\$FWRIm$('3$lDOLWLJDQWZKRVHHNV                  OLEHUDOO\6HH3HWURFHOOLY$QJHORQH)GWK
WR LQLWLDWH DQ DSSHDO RI WKH GLVPLVVDO RI D KDEHDV FRUSXV        &LUVHHDOVR3HRSOHVY+DOH\)G
SHWLWLRQPXVWVDWLVI\WKHIROORZLQJFHUWLILFDWHRIDSSHDODELOLW\           WK&LU$OH[DQGHUYsRKQVRQ)G
UHTXLUHPHQWV                                                              WK&LU
      3RUWHUILHOGY%HOO                           1R      1R                               3RUWHUILHOGY%HOO          

                       BBBBBBBBBBBBBBBB                                   8QOHVVDFLUFXLWMXVWLFHRUMXGJHLVVXHVDFHUWLILFDWH
                                                                        RIDSSHDODELOLW\DQDSSHDOPD\QRWEHWDNHQWRWKHFRXUW
                           ',66(17                                      RIDSSHDOVIURP
                       BBBBBBBBBBBBBBBB
                                                                           $WKHILQDORUGHULQDKDEHDVFRUSXVSURFHHGLQJLQ
   &/$<&LUFXLWsXGJHGLVVHQWLQJ$OWKRXJK,DJUHHZLWK              ZKLFKWKHGHWHQWLRQFRPSODLQHGRIDULVHVRXWRISURFHVV
WKH PDMRULW\ WKDW ZH UHWDLQ MXULVGLFWLRQ WR H[HUFLVH RXU        LVVXHGE\D6WDWHFRXUWRU
GLVFUHWLRQRYHUDFHUWLILFDWHRIDSSHDODELOLW\VHH8QLWHG6WDWHV
Y 0DUFHOOR  )G   WK &LU  ,           %WKHILQDORUGHULQDSURFHHGLQJXQGHUVHFWLRQ
GLVDJUHHZLWKWKHPDMRULW\jVGHFLVLRQWRYDFDWHWKHFHUWLILFDWH
RIDSSHDODELOLW\JUDQWHGWR3HWLWLRQHUE\WKHGLVWULFWFRXUWLQ            $ FHUWLILFDWH RI DSSHDODELOLW\ PD\ LVVXH XQGHU
WKLV FDVH  7KH GLVWULFW FRXUW ZDV REYLRXVO\ DZDUH RI WKH     SDUDJUDSKRQO\LIWKHDSSOLFDQWKDVPDGHDVXEVWDQWLDO
UHTXLUHPHQWVRI6ODFNY0F'DQLHO86EXW             VKRZLQJRIWKHGHQLDORIDFRQVWLWXWLRQDOULJKW
DSSOLHG WKHP OLEHUDOO\ LQDVPXFK DV WKLV LV D FDSLWDO FDVH
%HFDXVH,DJUHHZLWKWKHGLVWULFWFRXUWjVDSSURDFK,VHHQR               7KH FHUWLILFDWH RI DSSHDODELOLW\ XQGHU SDUDJUDSK
UHDVRQ WR UHPDQG WKH PDWWHU IRU IXUWKHU FRQVLGHUDWLRQ  ,      VKDOOLQGLFDWHZKLFKVSHFLILFLVVXHRULVVXHVVDWLVI\WKH
WKHUHIRUHUHVSHFWIXOO\GLVVHQW                                         VKRZLQJUHTXLUHGE\SDUDJUDSK

   7KH $QWLWHUURULVP DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW            86&F,QSDUVLQJWKLVVWDWXWRU\ODQJXDJHWKH
m$('3$l DOORZV IRU WKH LVVXDQFH RI D FHUWLILFDWH RI         &RXUW LQ 6ODFN ILUVW REVHUYHG WKDW m&RQJUHVV H[SUHVVHG QR
DSSHDODELOLW\ ZKHQ mWKH DSSOLFDQW KDV PDGH D VXEVWDQWLDO       LQWHQWLRQ WR DOORZ WULDO FRXUW SURFHGXUDO HUURU WR EDU
VKRZLQJ RI WKH GHQLDO RI D FRQVWLWXWLRQDO ULJKW>@l VHH    YLQGLFDWLRQ RI VXEVWDQWLDO FRQVWLWXWLRQDO ULJKWV RQ DSSHDOl
86&  F DQG WKH $('3$ IXUWKHU UHTXLUHV WKH       ,G86DW1RQHWKHOHVVWKH&RXUWZHQWRQWRKROG
DSSOLFDQWWRPDNHVXFKDVKRZLQJZLWKUHVSHFWWRHDFKLVVXH             :KHQ WKH GLVWULFW FRXUW GHQLHV D KDEHDV SHWLWLRQ RQ
KHVHHNVWRUDLVHRQDSSHDO6HH86&F,Q           SURFHGXUDO JURXQGV ZLWKRXW UHDFKLQJ WKH SULVRQHUjV
6ODFNY0F'DQLHOWKH6XSUHPH&RXUWQRWHGWKDWm>H@[FHSW               XQGHUO\LQJ FRQVWLWXWLRQDO FODLP D &2$ VKRXOG LVVXH
IRU VXEVWLWXWLQJ WKH ZRUG µFRQVWLWXWLRQDOj IRU WKH ZRUG          ZKHQWKHSULVRQHUVKRZVDWOHDVWWKDWMXULVWVRIUHDVRQ
µIHGHUDOjLVDFRGLILFDWLRQRIWKH&3&>FHUWLILFDWHRI          ZRXOGILQGLWGHEDWDEOHZKHWKHUWKHSHWLWLRQVWDWHVDYDOLG
SUREDEOHFDXVH@VWDQGDUGDQQRXQFHGLQ%DUHIRRWY(VWHOOH              FODLP RI WKH GHQLDO RI D FRQVWLWXWLRQDO ULJKW DQG WKDW
86>@>@l6HH86DW7KH               MXULVWV RI UHDVRQ ZRXOG ILQG LW GHEDWDEOH ZKHWKHU WKH
&RXUWZHQWRQWRVWDWHWKDWmZHJLYHWKHODQJXDJHIRXQGLQ              GLVWULFWFRXUWZDVFRUUHFWLQLWVSURFHGXUDOUXOLQJ7KLV
FWKHPHDQLQJDVFULEHGLWLQ%DUHIRRWZLWKGXHQRWH            FRQVWUXFWLRQ JLYHV PHDQLQJ WR &RQJUHVVj UHTXLUHPHQW
IRU WKH VXEVWLWXWLRQ RI WKH ZRUG µFRQVWLWXWLRQDOjl ,G          WKDW D SULVRQHU GHPRQVWUDWH VXEVWDQWLDO XQGHUO\LQJ
$FFRUGLQJO\ZKLOHUHO\LQJRQ%DUHIRRWWKH&RXUWKHOGWKDW            FRQVWLWXWLRQDO FODLPV DQG LV LQ FRQIRUPLW\ ZLWK WKH
    >W@R REWDLQ D &2$ >FHUWLILFDWH RI DSSHDODELOLW\@ XQGHU       PHDQLQJRIWKHmVXEVWDQWLDOVKRZLQJlVWDQGDUGSURYLGHG
     F D KDEHDV SULVRQHU PXVW PDNH D VXEVWDQWLDO        LQ%DUHIRRWVXSUDDWDQGQ6&WDQG
    VKRZLQJ RI WKH GHQLDO RI D FRQVWLWXWLRQDO ULJKW D          DGRSWHG E\ &RQJUHVV LQ $('3$ :KHUH D SODLQ
    GHPRQVWUDWLRQ WKDW XQGHU %DUHIRRW LQFOXGHV VKRZLQJ           SURFHGXUDOEDULVSUHVHQWDQGWKHGLVWULFWFRXUWLVFRUUHFW
    WKDWUHDVRQDEOHMXULVWVFRXOGGHEDWHZKHWKHURUIRUWKDW          WR LQYRNH LW WR GLVSRVH RI WKH FDVH D UHDVRQDEOH MXULVW
                                                                        FRXOGQRWFRQFOXGHHLWKHUWKDWWKHGLVWULFWFRXUWHUUHGLQ
      3RUWHUILHOGY%HOO                            1R     1R                             3RUWHUILHOGY%HOO      

    GLVPLVVLQJWKHSHWLWLRQRUWKDWWKHSHWLWLRQHUVKRXOGEH          H[WHQWWRZKLFKFHUWLILFDWHVRIDSSHDODELOLW\VKRXOGLVVXH7KH
    DOORZHGWRSURFHHGIXUWKHU,QVXFKDFLUFXPVWDQFHQR            DSSURDFKHVYDU\IURPDEODQNHWJUDQWDVWRDOOLVVXHVDVLQWKLV
    DSSHDOZRXOGEHZDUUDQWHG                                        FDVHWREODQNHWGHQLDOV%RWKRIWKHVHDSSURDFKHVXQGHUPLQH
                                                                      WKH JDWH NHHSLQJ IXQFWLRQ RI FHUWLILFDWHV RI DSSHDODELOLW\
,GDW)XUWKHUPRUHWKH&RXUWZHQWRQWRXQGHUVFRUHWKDW        ZKLFKLGHDOO\VKRXOGVHSDUDWHWKHFRQVWLWXWLRQDOFODLPVWKDW
WKLV LQTXLU\ KDV WZR FRPSRQHQWV mRQH GLUHFWHG DW WKH         PHULWWKHFORVHDWWHQWLRQRIFRXQVHODQGWKLVFRXUWIURPWKRVH
XQGHUO\LQJ FRQVWLWXWLRQDO FODLPV DQG RQH GLUHFWHG DW WKH       FODLPVWKDWKDYHOLWWOHRUQRYLDELOLW\0RUHRYHUEHFDXVHWKH
GLVWULFWFRXUWjVSURFHGXUDOKROGLQJl,GDW                    GLVWULFWFRXUWLVDOUHDG\GHHSO\IDPLOLDUZLWKWKHFODLPVUDLVHG
                                                                      E\SHWLWLRQHULWLVLQDIDUEHWWHUSRVLWLRQIURPDQLQVWLWXWLRQDO
  ,QWKHFDVHEHIRUHXVWKHGLVWULFWFRXUWJUDQWHGVXPPDU\           SHUVSHFWLYHWKDQWKLVFRXUWWRGHWHUPLQHZKLFKFODLPVVKRXOG
MXGJPHQWWRWKHUHVSRQGHQWRQDQXPEHURIFODLPVEDVHGXSRQ           EHFHUWLILHGIRUDSSHDO
SURFHGXUDO GHIDXOW  <HW LQ JUDQWLQJ D FHUWLILFDWH RI
DSSHDODELOLW\DVWRDOOFODLPVWKHFRXUWGLGQRWSURYLGHXVZLWK       $FFRUGLQJO\ ZH YDFDWH WKH FHUWLILFDWH RI DSSHDODELOLW\
DQ\DQDO\VLVWRLQGLFDWHWKDWLWKDGHQJDJHGLQWKHWZRSURQJHG       JUDQWHGE\WKHGLVWULFWFRXUWLQWKLVFDVHDQGUHPDQGWKHPDWWHU
LQTXLU\ VHW IRUWK LQ 6ODFN DV WR HDFK RI WKH SURFHGXUDOO\   LQ RUGHU WR SHUPLW WKH FRXUW WR HQJDJH LQ WKH UHDVRQHG
GHIDXOWHG FODLPV  5DWKHU WKH FRXUW VLPSO\ RUGHUHG m,Q      DVVHVVPHQWRIHDFKSURFHGXUDOO\GHIDXOWHGFODLPDVUHTXLUHG
DFFRUGDQFHZLWKWKHVWDQGDUGVHWIRUWKLQ%DUHIRRWY(VWHOOH        E\6ODFN5HVSRQGHQWjVPRWLRQWRGLVPLVVLVOLNHZLVHGHQLHG
86DQG/\RQVY2KLR$GXOW3DUROH
$XWK)GWK&LUWKH&RXUWKHUHE\
*5$176DFHUWLILFDWHRIDSSHDODEOLW\DVWRHDFKRIWKHFODLPV
UDLVHGLQWKHSHWLWLRQl2UGHUsDQXDU\
  $IWHUUHVSRQGHQWILOHGDPRWLRQIRUUHFRQVLGHUDWLRQLQOLJKW
RI6ODFNWKHGLVWULFWFRXUWLVVXHGDVHFRQGRUGHUGHQ\LQJWKH
PRWLRQ
      :KLOH WKH &RXUW GRHV QRW WDNH WKH 6XSUHPH &RXUWjV
    GHFLVLRQLQ6ODFNOLJKWO\WKHSHWLWLRQHULQWKDWFDVHZDV
    QRWXQGHUDVHQWHQFHRIGHDWK,WLVWKLV&RXUWjVRSLQLRQ
    WKDW FHUWLILFDWHV RI DSSHDODELOLW\ VKRXOG QRW EH XQGXO\
    UHVWULFWHGLQGHDWKSHQDOW\FDVHV
2UGHU )HEUXDU\    :KLOH ZH GR QRW QHFHVVDULO\
GLVDJUHHZLWKWKHYLHZWKDWWULDOFRXUWVVKRXOGHUURQWKHVLGH
RIFDXWLRQZKHQLWFRPHVWRWKHFHUWLILFDWLRQRIFODLPVWKDW
DUJXDEO\ KDYH PHULW WKHUH LV QRWKLQJ WR VXJJHVW WKDW6ODFN
GRHVQRWDSSO\ZLWKHTXDOIRUFHLQFDSLWDOFDVHV
   6LQFH WKH HQDFWPHQW RI $('3$ WKLV FRXUW KDV QRWHG D
GLVWXUELQJODFNRIXQLIRUPLW\WKURXJKRXWWKHGLVWULFWVRIRXU
FLUFXLWZLWKUHVSHFWWRKRZWULDOFRXUWVDUHWRGHWHUPLQHWKH