Court Opinion

ID: 2970118
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:04:50.35455+00
Date Added: 2024-06-11T11:43:28.020170
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

52%(57 &+$0%(56 s($1            ;
&+$0%(56 /$85(1                  
+2//$1' 6$5$+ +2//$1'           
                                     1RV
6WDWHRI2KLRH[UHO             
           3ODLQWLIIV$SSHOOHHV !
                                  
              &URVV$SSHOODQWV 
                                  
*5$+$0 0&&/(//$1' 	              
5$16%27720 &2 /3$           
0$126 0$57,1 3(5*5$0            
                                  
	 ',(7= &2 /3$              
:,//,$0 s %52:1,1*              
           $WWRUQH\V$SSHOOHHV 
              &URVV$SSHOODQWV 
                                  
            Y                    
                                  
                                  
2+,2 '(3$570(17 2)                
+80$1 6(59,&(6                   
s$&48(/,1( 520(56(16.< 
LQKHURIILFLDOFDSDFLW\         
       'HIHQGDQWV$SSHOODQWV 
               &URVV$SSHOOHHV 
                                 1

                            
        &KDPEHUVHWDOY2KLR                1RV
         'HSjWRI+XPDQ6HUYVHWDO

         $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
        IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV
    1Rn(GPXQG$6DUJXVsU'LVWULFWsXGJH
                      $UJXHGsXQH
             'HFLGHGDQG)LOHG'HFHPEHU
    %HIRUH%2**6DQG68+5+(,15,&+&LUFXLWsXGJHV
                &/(/$1''LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('  sRKQ 7 :LOOLDPV 2)),&( 2) 7+(
$77251(<*(1(5$/2)2+,2+($/7+	+80$1
6(59,&(6 6(&7,21 &ROXPEXV 2KLR IRU $SSHOODQWV
sRKQs.XOHZLF]925<66$7(56(<0285	3($6(
//3&ROXPEXV2KLRIRU$SSHOOHHV21%5,()sRKQ7
:LOOLDPV3DWULFN:%HDWW\2)),&(2)7+($77251(<
*(1(5$/ 2) 2+,2 +($/7+ 	 +80$1 6(59,&(6
6(&7,21 &ROXPEXV 2KLR IRU $SSHOODQWV  sRKQ s
.XOHZLF] 925<6 6$7(5 6(<0285 	 3($6( //3
&ROXPEXV2KLR'HQQLV/3HUJUDP0$1260$57,1
3(5*5$0	',(7=:RUWKLQJWRQ2KLRIRU$SSHOOHHV
                       BBBBBBBBBBBBBBBBB
                           23,1,21
                       BBBBBBBBBBBBBBBBB
  &/(/$1''LVWULFWsXGJH7KLVFDVHLVEHIRUHWKH6L[WK
&LUFXLW IRU D VHFRQG WLPH  2Q WKH ILUVW DSSHDO WKH GLVWULFW
FRXUWjVVXPPDU\MXGJPHQWLQ3ODLQWLIIVjIDYRUZDVUHYHUVHG
DQGWKHFDVHUHPDQGHGIRUIXUWKHUSURFHHGLQJVWHUPLQDWLQJWKH

     
      7KH +RQRUDEOH 5REHUW + &OHODQG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ
       &KDPEHUVHWDOY2KLR                    1RV         1RV                 &KDPEHUVHWDOY2KLR            
        'HSjWRI+XPDQ6HUYVHWDO                                                                       'HSjWRI+XPDQ6HUYVHWDO

   6LPLODUO\ WKLV FDVH FDQQRW VXUYLYH WKH UXOH VHW IRUWK LQ         FDVHLQ'HIHQGDQWVjIDYRU6HH&KDPEHUVY2KLR'HSjWRI
%XFNKDQQRQ7KHGLVWULFWFRXUWH[SUHVVO\UHOLHGXSRQWKH                    +XPDQ6HUYV)GWK&LU7KHLVVXHQRZ
FDWDO\VW  WKHRU\ LQ JUDQWLQJ 3ODLQWLIIVj PRWLRQ IRU DWWRUQH\V          SUHVHQWHGFRQFHUQVWKHSURSULHW\RIDWWRUQH\VIHHVDZDUGHGE\
IHHV   2UGHU DW  s$ DW   ,W GLG VR         WKHGLVWULFWFRXUWWRSODLQWLIIVjFRXQVHORQWKHmFDWDO\VWWKHRU\l
KRZHYHU RQO\ WR WKH mOLPLWHGl H[WHQW WKDW WKH 2'+6 KDG              RI VXFFHVV DV D mSUHYDLOLQJ SDUW\l  7KH 6XSUHPH &RXUWjV
PRGLILHGLWVUHJXODWLRQVDQGQRWLFHUHTXLUHPHQWV,G7KH                 UHFHQWRSLQLRQLQ%XFNKDQQRQ%GDQG&DUH+RPH,QFY
GLVWULFWFRXUWDFNQRZOHGJHGWKDWWKRVHPRGLILFDWLRQVKDGEHHQ                 :9'HSjWRI+HDOWKDQG+XPDQ5HVRXUFHV86
LPSOHPHQWHGE\WKH2'+6SULRUWRDQ\FRXUWDGMXGLFDWLRQRI                    6&WKDVPDGHFOHDUWKDWWRmSUHYDLOlWKHSDUW\
WKHPDWWHU2UGHUDWs$DW,WWKXV              PXVWKDYHREWDLQHGDFKDQJHLQWKHOHJDOUHODWLRQVKLSRIWKH
FDQQRW EH GLVSXWHG WKDW DQ\ FKDQJH LQ OHJDO UHODWLRQVKLS              SDUWLHV WKDW RULJLQDWHG LQ D FRXUW RUGHU RU WKDW KDG DW OHDVW
EHWZHHQ 3ODLQWLIIV DQG WKH 2'+6 ZDV QRW mMXGLFLDOO\                    UHFHLYHGMXGLFLDOVDQFWLRQ7KHFDWDO\VWWKHRU\RIVXFFHVVWKXV
VDQFWLRQHGl  $FFRUGLQJO\ WKH GLVWULFW FRXUWjV DZDUG RI               LVQRORQJHUDSHUPLVVLEOHEDVLVIRUDZDUGLQJDWWRUQH\VIHHV
DWWRUQH\VIHHVLV5(9(56('                                                   :HPXVWUHYHUVH
                                                                                                        ,%DFNJURXQG
                                                                                3ODLQWLIIV$SSHOOHHV 5REHUW &KDPEHUV sHDQ &KDPEHUV
                                                                              /DXUHQ+ROODQGDQG6DUDK+ROODQGFROOHFWLYHO\m3ODLQWLIIVl
                                                                              FRPPHQFHGWKLVFODVVDFWLRQSXUVXDQWWR86&
    
                                                                              FKDOOHQJLQJDGPLQLVWUDWLYHUXOHVSURPXOJDWHGE\'HIHQGDQW
     3ODLQWLIIV FODLP WKDW WKH 2'+6 ZDLYHG WKLV DUJXPHQW LV ZLWKRXW           2KLR'HSDUWPHQWRI+XPDQ6HUYLFHVmWKH2'+6lWKDWZHUH
IRXQGDWLRQ $W WKH sDQXDU\   KHDULQJ RQ WKH DPRXQW RI DWWRUQH\V        XWLOL]HG LQ GHWHUPLQLQJ WKH HOLJLELOLW\ RI LQVWLWXWLRQDOL]HG
IHHV WR EH DZDUGHG WKH GLVWULFW FRXUW VWDWHG WR FRXQVHO IRU 2'+6 DV
IROORZV
                                                                              VSRXVHV IRU 0HGLFDLG EHQHILWV  2Q FURVV PRWLRQV IRU
                                                                              VXPPDU\ MXGJPHQW WKH GLVWULFW FRXUW UXOHG LQ 3ODLQWLIIVj
    , XQGHUVWDQG \RX KDYH LQGLFDWHG LQ \RXU EULHILQJ WKDW REYLRXVO\           IDYRU RUGHULQJ WKH 2'+6 WR DOWHU LWV LQWHUSUHWDWLRQ RI WKH
    WKH GHIHQGDQWV GRQjW DJUHH ZLWK WKH FDWDO\VW WKHRU\ DV DSSURSULDWH        IHGHUDO0HGLFDLGODZV7KLVFRXUWUHYHUVHGRQDSSHDOILQGLQJ
    KHUH , GRQjW PHDQ WR JORVV RYHU WKDW 7KDWjV VR QRWHG %XW ZLWK          WKHUHOHYDQWVWDWXWRU\ODQJXDJHDPELJXRXVDQGXSKROGLQJWKH
    WKDW LQ PLQG REYLRXVO\ WKH &RXUW LV SUHSDUHG WR PRYH WR WKH QH[W
    VWHS <RX DUH QRW ZDLYLQJ DQ\ REMHFWLRQ EXW , ZRXOG DSSUHFLDWH
                                                                              2'+6jV UHJXODWLRQV DV FRPSULVLQJ D UHDVRQDEOH DQG
    \RXU FRPPHQWV ZLWK UHVSHFW WR ZKDW \RX EHOLHYH DUH DSSURSULDWH
                                                                              SHUPLVVLEOH LQWHUSUHWDWLRQ RI WKH VWDWXWH  6HH &KDPEHUV Y
    PHDVXUHPHQWV RI WKH DWWRUQH\Vj IHHV LQ WKLV FDVH                         2KLR'HSjWRI+XPDQ6HUYV)GWK&LU
 7U DW  s$ DW                                       (YHQEHIRUHWKHGLVWULFWFRXUWHQWHUHGLWVRUGHURQUHPDQG
    
                                                                              KRZHYHU WKH 2'+6 KDG LPSOHPHQWHG FKDQJHV WR LWV
      $OWKRXJK WKH GLVWULFW FRXUW H[SUHVVO\ DGRSWHG WKH FDWDO\VW WKHRU\ LW   UHJXODWLRQVWKDW3ODLQWLIIVGHHPHGEHQHILFLDOWRWKHLUFDXVH
IDLOHG WR SURSHUO\ FRQVLGHU WKH VHFRQG SURQJ RI WKH sRKQVWRQ DQDO\VLV        7KXVDOWKRXJKWKH2'+6XOWLPDWHO\SUHYDLOHGRQWKHPHULWV
ZKLFK UHTXLUHV mVRPH PLQLPXP EDVLV LQ ODZ IRU WKH UHOLHI VHFXUHGl
                                                                              RIWKHFDVH3ODLQWLIIVFRXOGEHYLHZHGDVKDYLQJVXFFHHGHGLQ
sRKQVWRQ  )G DW  7KDW RPLVVLRQoSDUWLFXODUO\ LQ YLHZ RI WKLV
FRXUWjV SULRU UXOLQJ WKDW mWKH 2'+6 LQWHUSUHWDWLRQ RI WKH >0HGLFDLG ODZV@
                                                                              VHFXULQJ VRPH RI WKH EHQHILWV WKH\ ZHUH VHHNLQJ YLD WKH
   >ZDV@ UHDVRQDEOH DQG SHUPLVVLEOHloFDVWV VHULRXV GRXEW XSRQ WKH          ODZVXLWEDVHGRQWKH2'+6FKDQJHV8SRQWKLVWKHRU\RI
DSSURSULDWHQHVV RI WKH IHH DZDUG HYHQ ZLWKRXW WKH   %XFNDKDQQRQ GHFLVLRQ     YLUWXDOYLFWRU\FRXQVHOIRU3ODLQWLIIVPRYHGWKHGLVWULFWFRXUW
6HH &KDPEHUV  )G DW 
     &KDPEHUVHWDOY2KLR               1RV        1RV                   &KDPEHUVHWDOY2KLR                
      'HSjWRI+XPDQ6HUYVHWDO                                                                   'HSjWRI+XPDQ6HUYVHWDO

IRU DWWRUQH\V IHHV XQGHU WKH &LYLO 5LJKWV $WWRUQH\jV )HHV     HQIRUFHDEOH MXGJPHQW VHWWOHPHQW RU FRPSDUDEOH W\SH RI
$ZDUGV$FWRIZKLFKDOORZVDGLVWULFWFRXUWLQD         UHOLHIRUDYROXQWDU\FKDQJHLQDGHIHQGDQWjVEHKDYLRUZLOO
DFWLRQWRDZDUGDWWRUQH\VIHHVWRmWKHSUHYDLOLQJSDUW\l6HH        mJHQHUDOO\PDNHDSODLQWLIIDµSUHYDLOLQJSDUW\jl
 86&    7KH GLVWULFW FRXUW JUDQWHG WKH PRWLRQ
ILQGLQJWKDW3ODLQWLIIVZHUHDmSUHYDLOLQJSDUW\lXQGHUWKHVR          7KH SDUWLHV LQ WKLV PDWWHU LQLWLDOO\ SURFHHGHG XQGHU WKH
FDOOHGFDWDO\VWWKHRU\7KLVDSSHDOIROORZHG                       DVVXPSWLRQ WKDW WKH DQDO\VLV RI sRKQVWRQ DQG LWV SURJHQ\
                                                                      ZRXOG JRYHUQ WKHLU DSSHDO  $IWHU WKH SDUWLHV FRPSOHWHG
                         ,,'LVFXVVLRQ                              EULHILQJWKHPDWWHUKRZHYHUWKH6XSUHPH&RXUWLVVXHGDQ
                                                                      RSLQLRQLQYDOLGDWLQJWKHFDWDO\VWWKHRU\DVDSHUPLVVLEOHEDVLV
  7KHFDWDO\VWWKHRU\IRUDZDUGLQJDWWRUQH\VIHHVZDVILUVW           IRU DZDUGLQJ DWWRUQH\V IHHV  %XFNKDQQRQ %G DQG &DUH
DGRSWHGE\WKLVFRXUWLQsRKQVWRQYsDJR)GWK          +RPH,QFY:9'HSjWRI+HDOWKDQG+XPDQ5HVRXUFHV
&LU7KHSODLQWLIILQWKDWFDVHKDGILOHGDFLYLOULJKWV      866&W7KH&RXUWFRQFOXGHGWKDWWR
DFWLRQ LQ IHGHUDO FRXUW EDVHG XSRQ KLV GLVPLVVDO IURP         mSUHYDLOlDQGWKXVEHFRPHHOLJLEOHIRUDWWRUQH\VIHHVDSDUW\
HPSOR\PHQWDVDVWDWHFRUUHFWLRQVRIILFHU:KLOHPDLQWDLQLQJ         PXVW KDYH REWDLQHG mD MXGLFLDOO\ VDQFWLRQHG FKDQJH LQ WKH
KLV DFWLRQ LQ IHGHUDO FRXUW WKH SODLQWLII VLPXOWDQHRXVO\      OHJDO UHODWLRQVKLS RI WKH SDUWLHVl  ,G DW  HPSKDVLV
SURVHFXWHGDQDGPLQLVWUDWLYHDSSHDOZKLFKXOWLPDWHO\VHWWOHG         DGGHG0RUHVSHFLILFDOO\WKH&RXUWQRWHGWKDWDQDZDUGRI
LQKLVIDYRU3XUVXDQWWRWKHVHWWOHPHQWGHFUHHWKHSODLQWLII       DWWRUQH\VIHHVLVDSSURSULDWHZKHUHDSODLQWLIIKDVREWDLQHGDQ
ZDV UHTXLUHG WR mWDNH DOO VWHSV QHFHVVDU\ WR HIIHFWXDWH D    mHQIRUFHDEOHMXGJPHQW>@RQWKHPHULWVlRUDmFRXUWRUGHUHG
ZLWKGUDZDOl RI KLV IHGHUDO ODZVXLW  2QH VWHS GHHPHG          FRQVHQWGHFUHH>@lEXWQRWXQGHUWKHFDWDO\VWWKHRU\ZKLFK
QHFHVVDU\ZDVWRPRYHIRUDWWRUQH\VIHHVZKLFKZHUHJUDQWHG          mDOORZV DQ DZDUG ZKHUH WKHUH LV QR MXGLFLDOO\ VDQFWLRQHG
E\WKHGLVWULFWFRXUW2QDSSHDOWKLVFRXUWDIILUPHGWKHDZDUG     FKDQJHLQWKHOHJDOUHODWLRQVKLSRIWKHSDUWLHVl,G7KXVWKH
FRQFOXGLQJ WKDW D SODLQWLII ZKR REWDLQHG UHOLHI WKURXJK D     &RXUW FRQFOXGHG WKDW m>D@ GHIHQGDQWjV YROXQWDU\ FKDQJH LQ
VHWWOHPHQWZDVDmSUHYDLOLQJSDUW\lDVORQJDVWKDWSODLQWLII         FRQGXFWDOWKRXJKSHUKDSVDFFRPSOLVKLQJZKDWWKHSODLQWLII
FRXOGmGHPRQVWUDWHWKDWKLVRUKHUODZVXLWZDVFDXVDOO\           VRXJKWWRDFKLHYHE\WKHODZVXLWODFNVWKHQHFHVVDU\MXGLFLDO
UHODWHG WR VHFXULQJ WKH UHOLHI REWDLQHGl DQG  mHVWDEOLVK   LPSULPDWXU RQ WKH FKDQJHl  ,G  3URFHHGLQJ IURP WKLV
VRPHPLQLPXPEDVLVLQODZIRUWKHUHOLHIVHFXUHGl,GDW        DQDO\VLVWKH&RXUWFDWHJRULFDOO\UHMHFWHGWKHFDWDO\VWWKHRU\DV
FLWLQJ1DGHDXY+HOJHPRH)GVW&LU            DSHUPLVVLEOHEDVLVIRUDZDUGLQJDWWRUQH\jVIHHV,GDW
:HIRXQGRImQRFRQVHTXHQFHlWKHIDFWWKDWWKHVHWWOHPHQW             7RWKHH[WHQWsRKQVWRQDQGLWVSURJHQ\GLVDJUHHWKH\KDYH
KDGEHHQQHJRWLDWHGLQDVHSDUDWHDOEHLWUHODWHGSURFHHGLQJ        EHHQRYHUUXOHGE\%XFNKDQQRQ
,GDW
  ,QVXEVHTXHQWFDVHVZHFRQVLVWHQWO\KDYHUHDIILUPHGWKDWD
SODLQWLII ZKR UHFHLYHV VRPH RI WKH UHOLHI VRXJKW LQ D
ODZVXLWoZKHWKHUWKURXJKVHWWOHPHQWRUYROXQWDU\DFWLRQWDNHQ
E\ WKH GHIHQGDQWoFDQ EH D SUHYDLOLQJ SDUW\ mGHVSLWH WKH
DEVHQFHRIDIRUPDOMXGJPHQWl:RROULGJHY0DUOHQH,QGXV               
&RUS  )G   WK &LU  VHH DOVR            $OWKRXJK   %XFNKDQQRQ LQYROYHG WKH DZDUG RI DWWRUQH\V IHHV XQGHU
                                                                      D GLIIHUHQW VWDWXWH WKDQ LV DW LVVXH KHUH WKH &RXUW H[SUHVVO\ VWDWHG WKDW DOO
2ZQHU2SHUDWRU,QGHSHQGHQW'ULYHUV$VVjQ,QFY%LVVHOO            VWDWXWHVoLQFOXGLQJ  oWKDW DXWKRUL]H DWWRUQH\jV IHHV WR WKH mSUHYDLOLQJ
 )G   WK &LU  REVHUYLQJ WKDW DQ      SDUW\l DUH WR EH WUHDWHG FRQVLVWHQWO\   %XFNKDQQRQ  86   6 &W
                                                                      DW  Q