Elawyers Elawyers
Washington| Change

Richland Bookmart v. Nichols, 00-5563 (2002)

Court: Court of Appeals for the Sixth Circuit Number: 00-5563 Visitors: 10
Filed: Jan. 23, 2002
Latest Update: Mar. 02, 2020
Summary: 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 DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB 5,&+/$1' %22.0$57 ,1& ; GED72:1 $1' &28175 Y@DOLGGLVWLQFWLRQVEHWZHHQFDEOHDQGRWKHUEURDGFDVWLQJl HIIRUW%RRNPDUWQRZFKDOOHQJHVWKDWUXOLQJ)RUWKHUHDVRQV 6HHLGDW6SHFLILFDOO\WKHFRXUWQRWHGWKDWWKH$UL]RQD VHW IRUWK EHORZ ZH $)),50 WKH MXGJPHQW
More
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 DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB 5,&+/$1' %22.0$57 ,1& ; GED72:1 $1' &28175 Y@DOLGGLVWLQFWLRQVEHWZHHQFDEOHDQGRWKHUEURDGFDVWLQJl HIIRUW%RRNPDUWQRZFKDOOHQJHVWKDWUXOLQJ)RUWKHUHDVRQV 6HHLGDW6SHFLILFDOO\WKHFRXUWQRWHGWKDWWKH$UL]RQD VHW IRUWK EHORZ ZH $)),50 WKH MXGJPHQW RI WKH GLVWULFW OHJLVODWXUHmPD\KDYHGHWHUPLQHGWKDWFDEOHWHOHYLVLRQLV FRXUW OHVVSHUYDVLYHDQGH[WUHPHLQLWVVH[XDOFRQWHQWl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jV 2ULHQWHG(VWDEOLVKPHQWV$FWRI7HQQ&RGH$QQ† FRQWHQWLRQWKDWWKLVFRQFOXVLRQFDQQRWEHUHDFKHGZKHUHWKH 7KH$FWGHILQHVDQmDGXOWRULHQWHGHVWDEOLVKPHQWl FRQWHQWRIWKHVSHHFKLVYLUWXDOO\LGHQWLFDOIDLOVWRFRQVLGHU DV mDQ\ FRPPHUFLDO HVWDEOLVKPHQW EXVLQHVV RU VHUYLFH RU WKHVLJQLILFDQFHRIZKHQWKHVHFRQGDU\HIIHFWVRIHDFKDUHDOVR SRUWLRQWKHUHRIZKLFKRIIHUVDVLWVSULQFLSDORUSUHGRPLQDQW YLUWXDOO\LGHQWLFDODVHVSRXVHGE\WKLV&RXUWLQ'/6 VWRFN RU WUDGH VH[XDOO\ RULHQWHG PDWHULDO GHYLFHV RU SDUDSKHUQDOLD RU VSHFLILHG VH[XDO DFWLYLWLHV RU DQ\ FRPELQDWLRQ RU IRUP WKHUHRI ZKHWKHU SULQWHG ILOPHG UHFRUGHG RU OLYH DQG ZKLFK UHVWULFWV RU SXUSRUWV WR UHVWULFW DGPLVVLRQ WR DGXOWV RU WR DQ\ FODVV RI DGXOWVl  6XFK HVWDEOLVKPHQWVLQFOXGHDGXOWERRNVWRUHVDGXOWPRWLRQSLFWXUH WKHDWHUVDQGDGXOWOLYHHQWHUWDLQPHQW  5LFKODQG%RRNPDUWY1LFKROV 1R 1R 5LFKODQG%RRNPDUWY1LFKROV  6HFWLRQ  RI WKH $FW OLPLWV WKH EXVLQHVV KRXUV IRU DGXOW XQGHULQFOXVLYH DQG WKHUHIRUH UXQ DIRXO RI WKH &RQVWLWXWLRQ RULHQWHGHVWDEOLVKPHQWVWREHWZHHQDPDQGDP ZKHQWKHVHFRQGDU\HIIHFWVRIDUHJXODWHGDFWLYLW\DQGWKRVH 0RQGD\ WKURXJK 6DWXUGD\  ,W DOVR SURKLELWV DOO VXFK RIDQXQUHJXODWHGVLPLODUDFWLYLW\DUHLQGLVWLQJXLVKDEOHoE\ HVWDEOLVKPHQWV IURP RSHUDWLQJ RQ 6XQGD\V DQG VWDWH OHJDO FRXFKLQJWKH'/6GLUHFWLYHDVmDVLQJOHFODXVHl7KHIRUFHRI KROLGD\V6HFWLRQRIWKH$FWUHJXODWHVWKHFRQILJXUDWLRQRI D GLUHFWLYH FDQQRW EH PLQLPL]HG E\ WKH EUHYLW\ RI LWV SULYDWHERRWKVVWDOOVRUSDUWLWLRQHGURRPVLQRUGHUWRSUHYHQW JUDPPDWLFDOFKDUDFWHUL]DWLRQ,QGHHGWKH)LUVW$PHQGPHQW WKHLU XVH IRU VH[XDO DFWLYLW\  %HFDXVH %RRNPDUW KDV QR LWVHOILVDmVLQJOHlVHQWHQFHXSRQZKLFKWKHMXULVSUXGHQFHRI SULYDWH ERRWKV WKLV SURYLVLRQ RI WKH $FW LV QRW DW LVVXH RXUFRXQWU\LVGHHSO\FRPPLWWHGWRHYHU\mFODXVHlWKHUHLQ 6HFWLRQRIWKH$FWVHWVRXWWKHFULPLQDOSHQDOWLHVPDNLQJ 6HH%RQQHOOY/RUHQ]R)G WK&LU DQ\YLRODWLRQDPLVGHPHDQRU m>:@HKRSHWKDWZKHQHYHUZHGHFLGHWRWROHUDWHLQWROHUDQW VSHHFKWKHVSHDNHUDVZHOODVWKHDXGLHQFHZLOOXQGHUVWDQG 7KH EDVLV IRU %RRNPDUWjV HTXDO SURWHFWLRQ FKDOOHQJH LV WKDWZHGRVRWRH[SUHVVRXUGHHSFRPPLWPHQWWRWKHYDOXHRI IRXQG LQ 6HFWLRQ  RI WKH $FW  +HUH WKH $FW VSHFLILFDOO\ WROHUDQFHDYDOXHSURWHFWHGE\HYHU\FODXVHLQWKHVLQJOH H[HPSWV DGXOWRULHQWHG HVWDEOLVKPHQWV RIIHULQJ mRQO\ OLYH VHQWHQFHFDOOHGWKH)LUVW$PHQGPHQWl  TXRWLQJ(GZDUG VWDJHDGXOWHQWHUWDLQPHQWLQDWKHDWUHDGXOWFDEDUHWRUGLQQHU s &OHDU\ %H\RQG WKH %XUQLQJ &URVV    TXRWLQJ VKRZ W\SH VHWWLQJl FROOHFWLYHO\ mOLYH FDEDUHWVl  IURP LWV VSHHFK RI sXVWLFH 6WHYHQV   ,Q DGGLWLRQ WKH IRUFH RI WKH mRSHQLQJDQGFORVLQJWLPHOLPLWDWLRQVl%RRNPDUWPDLQWDLQV mVLQJOHFODXVHlGLUHFWLYHLQ'/6FDQQRWEHVZHSWDVLGHDVWKH WKDW WKH $FW WKHUHIRUH FODVVLILHV VLPLODUO\ VLWXDWHG DGXOW PDMRULW\DWWHPSWVWRGRE\UHQGHULQJWKHGLUHFWLYHVRPHVRUW RULHQWHGHVWDEOLVKPHQWVGLIIHUHQWO\ RImEROVWHULQJlGHYLFHRUE\VLPSO\ORRNLQJWRWKHH[SUHVVLYH FRQWHQWRIWKHWZRDFWLYLWLHVLQYROYHG7RGRVRQHJDWHVWKH $QWLFLSDWLQJ FRQVWLWXWLRQDO FKDOOHQJHV WKH 7HQQHVVHH YHU\ FKDUDFWHULVWLF ZKLFK WKLV &RXUW IRXQG RXWFRPH OHJLVODWXUHKHOGVLJQLILFDQWKHDULQJVDQGLQFOXGHGDOHQJWK\ GHWHUPLQDWLYH LQ '/6 QDPHO\ WKDW WKH VHFRQGDU\ HIIHFWV SUHDPEOH LQ WKH $FW  7KH $FWjV SUHDPEOH DQG OHJLVODWLYH EHWZHHQWKHUHJXODWHGDQGWKHQRQUHJXODWHGHVWDEOLVKPHQWV KLVWRU\PDNHFOHDUWKDWWKHOHJLVODWXUHSURPXOJDWHGWKH$FWLQ ZHUHGLIIHUHQW RUGHUWRDGGUHVVFHUWDLQDGYHUVHVHFRQGDU\HIIHFWVFRPPRQO\ DVVRFLDWHG ZLWK DGXOWRULHQWHG HVWDEOLVKPHQWV  7KHVH 6LPLODUO\ WKH IRUFH RI WKH '/6 GLUHFWLYH FDQQRW EH VHFRQGDU\ HIIHFWVLQFOXGHLQFUHDVHGFULPHDQGSURVWLWXWLRQ PLQLPL]HG E\ WKH PDMRULW\jV FODLP WKDW LW LV D PHUH UHGXFHGSURSHUW\YDOXHVXUEDQEOLJKWWKHVSUHDGRIVH[XDOO\ mLQIHUHQFHlWKDW,KDYHGUDZQIURPWKHFDVH7KHPDMRULW\ WUDQVPLWWHG DQG FRPPXQLFDEOH GLVHDVHV DQG DQ RYHUDOO FRQWHQGVWKDWVXFKDQmLQIHUHQFHlLVmLQFRQVLVWHQWZLWKWKH GRZQWXUQLQWKHTXDOLW\RIOLIH XQFRQWHVWHG IDFW WKDW WKH H[SUHVVLYH FRQWHQW RI WKH OLYH FDEDUHWV DQG DGXOW ERRNVWRUHV LV YLUWXDOO\ LGHQWLFDOl  $V %HFDXVHWKH7HQQHVVHHOHJLVODWXUHIRFXVHGLWVDWWHQWLRQRQ QRWHGWKH'/6GLUHFWLYHWKDWDQRUGLQDQFHPD\EHFRQVLGHUHG SRWHQWLDO)LUVW$PHQGPHQWFKDOOHQJHVWRWKH$FWWKHUHDUH FRQWHQW EDVHG ZKHQ WKH H[SUHVVLYH FRQWHQW DV ZHOO DV WKH IHZUHIHUHQFHVLQWKHOHJLVODWLYHKLVWRU\WRHTXDOSURWHFWLRQRU VHFRQGDU\HIIHFWVRIWKHWZRHVWDEOLVKPHQWVDUHWKHVDPHLVD WRWKHUDWLRQDOHVXSSRUWLQJWKHRSHUDWLQJKRXUH[HPSWLRQIRU SUHPLVH o QRW DQ LQIHUHQFH WKDW WKLV &RXUW IRXQG VR OLYH FDEDUHWV SURYLGHG LQ 6HFWLRQ   ,Q WKH SULRU \HDU VLJQLILFDQWWKDWWKHFDVHWXUQHGRQWKHIDFWWKDWWKHVHFRQGDU\ KRZHYHU WKH OHJLVODWXUH KDG SDVVHG 7HQQHVVHHjV 3XEOLF HIIHFWVEHWZHHQWKHWZRHVWDEOLVKPHQWVWKHUHZHUHGLIIHUHQW ,QGHFHQF\$FW7HQQ&RGH$QQ†PDNLQJLWD PLVGHPHDQRURIIHQVHWRNQRZLQJO\RULQWHQWLRQDOO\DSSHDULQ $ORQJ WKLV OLQH WKH VLJQLILFDQW IDFW WKDW WKH VHFRQGDU\ SXEOLFLQDmVWDWHRIQXGLW\l7RFRPSO\ZLWKWKHLQGHFHQF\ HIIHFWV RI WKH UHJXODWHG ERRNVWRUHV DQG XQUHJXODWHG OLYH  5LFKODQG%RRNPDUWY1LFKROV 1R 1R 5LFKODQG%RRNPDUWY1LFKROV  GRZQWXUQLQWKHTXDOLW\RIOLIHoDUHDQ\OHVVRIDFRQFHUQZLWK VWDWXWH SHUIRUPHUV DW WKH OLYH FDEDUHWV KDYH WR ZHDU DW D OLYH DGXOW FDEDUHWV WKDQ ZLWK WKH DGXOW ERRNVWRUHV WKHUHE\ PLQLPXPmSDVWLHVlDQGDm*VWULQJl PDNLQJWKLVFDVHGLVWLQJXLVKDEOHIURP'/6,QGHHGZKHQ DVNHGDWRUDODUJXPHQWDVWRZK\WKHVHVHFRQGDU\FRQFHUQVDUH 7KHLQGHFHQF\VWDWXWHOLNHWKH$FWEHIRUHXVZDVHQDFWHG QRWSUHVHQWZLWKOLYHFDEDUHWV'HIHQGDQWRIIHUHGQRUHVSRQVH WR IXUWKHU WKH VWDWHjV LQWHUHVW LQ FRPEDWLQJ WKH KDUPIXO &RPPRQVHQVHZRXOGVHHPWRGLFWDWHWKDWLIDQ\WKLQJWKH VHFRQGDU\ HIIHFWV DVVRFLDWHG ZLWK DGXOWRULHQWHG VHFRQGDU\ HIIHFWV ZRXOG EH PRUH RI D FRQFHUQ ZLWK OLYH HVWDEOLVKPHQWV  ,WV SUHDPEOH VWDWHV WKDW mQXGH GDQFLQJ FDEDUHWV LQDVPXFK DV XQOLNH WKH LQVWDQFH ZLWK DGXOW HVWDEOLVKPHQWV EHFDXVH RI WKHLU YHU\ QDWXUH KDYH D ERRNVWRUHVZKHUHSDWURQVSXUFKDVHVH[XDOO\H[SOLFLWPDWHULDO GHOHWHULRXVHIIHFWRQERWKWKHH[LVWLQJEXVLQHVVHVDURXQGWKHP IRUXVHRUYLHZLQJDWVRPHORFDWLRQDZD\IURPWKHVWRUHLWVHOI DQG WKH VXUURXQGLQJ UHVLGHQWLDO DUHDV DGMDFHQW WR WKHP SDWURQV RI OLYH FDEDUHWV DUH YLHZLQJ DQG H[SHULHQFLQJ WKH FDXVLQJ LQFUHDVHG FULPH DQG WKH GRZQJUDGLQJ RI SURSHUW\ VH[XDOO\H[SOLFLWPDWHULDODWWKDWORFDWLRQWKHUHE\PDNLQJLW YDOXHVlDQGmFRQWULEXWLQJWRXUEDQEOLJKWDQGGRZQJUDGLQJ PRUHOLNHO\WKDWWKHSDWURQZRXOGKDYHVH[XDOFRQWDFWZLWKDQ WKHTXDOLW\RIOLIHLQWKHDGMDFHQWDUHDl HQWHUWDLQHURUWRHQJDJHLQOHZGDFWVLQWKHVXUURXQGLQJDUHD ,QIDFWWKH6XSUHPH&RXUWKDVIRXQGFRQVWLWXWLRQDODQ,QGLDQD %HIRUHWKHLQGHFHQF\ODZZHQWLQWRHIIHFWLQsXO\RI VWDWH RUGLQDQFH UHTXLULQJ RWKHUZLVH QXGH GDQFHUV WR ZHDU PXOWLSOHRZQHUVDQGRSHUDWRUVRIQXGHGDQFLQJHVWDEOLVKPHQWV SDVWLHV DQG *VWULQJV UHFRJQL]LQJ WKDW WKH RUGLQDQFH ZDV EURXJKWVXLWFKDOOHQJLQJWKHODZjVFRQVWLWXWLRQDOLW\XQGHUWKH HQDFWHGWRSURWHFWWKHSXEOLFIURPKDUPIXOVHFRQGDU\HIIHFWV )LUVW $PHQGPHQW  (QIRUFHPHQW RI WKH ODZ ZDV VWD\HG RI VXFK OLYH QXGH HVWDEOLVKPHQWV  6HH %DUQHV Y *OHQ SHQGLQJWKHRXWFRPHRIWKHVHODZVXLWV,QsDQXDU\RI 7KHDWUH,QF86   WKLVFRXUWXSKHOGWKH3XEOLF,QGHFHQF\$FWFRQFOXGLQJWKDWLWV HQIRUFHPHQW GRHV QRW YLRODWH WKH )LUVW $PHQGPHQWjV %HFDXVHWKHQRQUHJXODWHGOLYHFDEDUHWVRIWKHNLQGLQYROYHG JXDUDQWHH RI IUHHGRP RI H[SUHVVLRQ  6HH ,Q UH 7HQQHVVHH KHUHUDLVHWKHVDPHVSHFWHURIVHFRQGDU\HIIHFWVDVVRFLDWHG 3XE,QGHFHQF\6WDWXWH1RV ZLWKWKHUHJXODWHGDGXOWERRNVWRUHVLWVKRXOGEHFRQFOXGHG   :/  DW  WK &LU sDQ   WKDWWKH7HQQHVVHHOHJLVODWXUHmLQIDFWPDGHDQLPSHUPLVVLEOH XQSXEOLVKHG WDEOH GHFLVLRQ   %HFDXVH RI WKH GHOD\ LQ GLVWLQFWLRQ RQ WKH EDVLV RI WKH FRQWHQW RI WKH UHJXODWHG LPSOHPHQWDWLRQ FDXVHG E\ WKH SHQGLQJ OLWLJDWLRQ WKH VSHHFKl'/6,QF )GDW ILQGLQJWKDWEHFDXVH 7HQQHVVHH OHJLVODWXUH ZDV QRW DEOH WR DVVHVV WKH 3XEOLF mQRQH RI WKH LWHPV LQ >WKH ODXQGU\ OLVW RI XQUHJXODWHG ,QGHFHQF\$FWjVHIILFDF\LQFRPEDWLQJWKHVHFRQGDU\HIIHFWV DFWLYLWLHV@FDUULHVZLWKLWWKHVDPHGDQJHURIFULPHDQGGLVHDVH DVVRFLDWHG ZLWK QXGH GDQFLQJ HVWDEOLVKPHQWV ZKHQ LW ZDV WKDW WKH >UHJXODWHG DFWLYLWLHV@ GR>@l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jV RSHUDWLQJKRXU 7KHPDMRULW\DWWHPSWVWRGLPLQLVKWKHIRUFHRIWKLV&RXUWjV UHVWULFWLRQVYLRODWHGWKH)LUVW$PHQGPHQWDQGWKDWWKH$FW GLUHFWLYH LQ '/6 o WKDW D UHJXODWLRQ PD\ EH FRQVLGHUHG ZDV XQFRQVWLWXWLRQDO LQ LWV RYHUEUHDGWK DQG YDJXHQHVV  ,W WKHUHIRUHLVVXHGDSUHOLPLQDU\LQMXQFWLRQWKDWZDVODWHUPDGH  5LFKODQG%RRNPDUWY1LFKROV 1R 1R 5LFKODQG%RRNPDUWY1LFKROV  SHUPDQHQW7KHGLVWULFWFRXUWKRZHYHUQHYHUUHDFKHGWKH WKDWIHDWXUHHPSOR\HHVZKRH[SRVHWKHLUEUHDVWVEXWWRFNVRU HTXDOSURWHFWLRQLVVXHUDLVHGLQ%RRNPDUWjVFRPSODLQW JHQLWDOVWRSXEOLFYLHZDQGµDGXOWERRNVWRUHVjRUERRNVWRUHV WKDWDOVRRIIHUILOPVRUOLYHHQWHUWDLQPHQWWKDWGHSLFWFHUWDLQ 7KLVFRXUWUHYHUVHGWKHGLVWULFWFRXUWRQDSSHDODQGXSKHOG GHILQHGµVH[XDODFWLYLWLHVjRUµDQDWRPLFDODUHDVjl,G$IWHU WKH$FWDVFRQVWLWXWLRQDOXQGHUWKH)LUVW$PHQGPHQW7KH D VHULHV RI DPHQGPHQWV DQG FRQVWLWXWLRQDO FKDOOHQJHV WKH FRXUWUHDVRQHG DPHQGHG RUGLQDQFH ZDV FKDOOHQJHG ZLWK UHVSHFW WR WKH SURYLVLRQ WKDW mSURKLELW>HG@ HQWHUWDLQHUV IURP DSSURDFKLQJ >6@XFKUHJXODWLRQRIKRXUVRIVKRSVVHOOLQJVH[OLWHUDWXUH ZLWKLQVL[IHHWRIFXVWRPHUVHPSOR\HHVRURWKHUHQWHUWDLQHUV ZRXOGWHQGWRGHWHUSURVWLWXWLRQLQWKHQHLJKERUKRRGDW GXULQJDSHUIRUPDQFHl,G,QWKHFRXUVHRIPDNLQJWKHLU QLJKWRUWKHFUHDWLRQRIGUXJmFRUQHUVl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mLQVRPHUDUHFDVHVWKH XQGHULQFOXVLYHQHVV RI D ODZ o LH WKH IDLOXUH RI WKH %RRNPDUW ,  )G DW   ,W WKHUHIRUH YDFDWHG WKH JRYHUQPHQWWRUHJXODWHRWKHUVLPLODUDFWLYLW\oPD\JLYHULVH SHUPDQHQWLQMXQFWLRQDQGUHPDQGHGWKHFDVHWRWKHGLVWULFW WR D FRQFOXVLRQ WKDW WKH JRYHUQPHQW KDV LQ IDFW PDGH DQ FRXUWIRUIXUWKHUSURFHHGLQJVRQ%RRNPDUWjVHTXDOSURWHFWLRQ LPSHUPLVVLEOHGLVWLQFWLRQRQWKHEDVLVRIWKHFRQWHQWRIWKH FKDOOHQJHWRWKH$FWjVH[HPSWLRQRIOLYHFDEDUHWVIURPWKH UHJXODWHGVSHHFKl'/6,QF)GDW,QILQGLQJWKDW RSHUDWLQJKRXUUHVWULFWLRQV WKHPDWWHUEHIRUHLWZDVmQRWRQHRIWKRVHFDVHV>@lWKH&RXUW QRWHGWKDWm>W@KHH[SUHVVLYHFRQWHQWRIWKHLWHPVLQSODLQWLIIVj 2QUHPDQG%RRNPDUWPRYHGIRUDSUHOLPLQDU\LQMXQFWLRQ ODXQGU\OLVWRIXQUHJXODWHGWUDQVDFWLRQVLVYLUWXDOO\LGHQWLFDO DQGIRUVXPPDU\MXGJPHQW7KH'LVWULFW$WWRUQH\RSSRVHG WRWKDWRIHURWLFGDQFLQJKRZHYHUQRQHRIWKHLWHPVFDUULHV %RRNPDUWjVPRWLRQVDQGILOHGKLVRZQPRWLRQIRUMXGJPHQW ZLWKLWWKHVDPHGDQJHURIFULPHDQGGLVHDVHWKDWWKHDGXOW RQWKHSOHDGLQJVRULQWKHDOWHUQDWLYHVXPPDU\MXGJPHQW FDEDUHWVGRl,G HPSKDVLVDGGHG  %HFDXVHERWKSDUWLHVDJUHHGDWDVWDWXVFRQIHUHQFHWRPDLQWDLQ WKHVWDWXVTXRWKHGLVWULFWFRXUWGHQLHGDVPRRW%RRNPDUWjV +HUHRQWKHRWKHUKDQG'HIHQGDQWVKDYHRIIHUHGQRWKLQJ PRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQ WRLQGLFDWHWKDWWKHSXUSRUWHGVHFRQGDU\HIIHFWVWKDWWKH$FW ZDVGHVLJQHGWRSUHYHQWoLQFUHDVHGFULPHDQGSURVWLWXWLRQ 7KHGLVWULFWFRXUWJUDQWHGWKH'LVWULFW$WWRUQH\jVPRWLRQIRU UHGXFHGSURSHUW\YDOXHVXUEDQEOLJKWWKHVSUHDGRIVH[XDOO\ VXPPDU\MXGJPHQWRQ0DUFK7KHFRXUWUHMHFWHG WUDQVPLWWHG DQG FRPPXQLFDEOH GLVHDVHV DQG DQ RYHUDOO %RRNPDUWj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jVRSHUDWLQJKRXUUHVWULFWLRQVLPSOLFDWHDQ\IXQGDPHQWDO $PHQGPHQWSULQFLSOHVl&LW\RI/DGXHY*LOOHR86 ULJKW%RRNPDUWFRQWHQGVWKDWWKH$FWVKRXOGEHVXEMHFWWR    HPSKDVLVLQRULJLQDO ,QGHHGWKLV&RXUWKDV VWULFW VFUXWLQ\ DQDO\VLV EHFDXVH LW EXUGHQV WKH IXQGDPHQWDO UHFRJQL]HGWKDWmLQVRPHFDVHVWKHXQGHULQFOXVLYHQHVVRID ULJKWVDVVRFLDWHGZLWKIUHHGRPRIH[SUHVVLRQDQGLVDFRQWHQW ODZ o LH WKH IDLOXUH RI WKH JRYHUQPHQW WR UHJXODWH RWKHU EDVHGUHJXODWLRQLQYLRODWLRQRIWKH)LUVW$PHQGPHQW7KH VLPLODU DFWLYLW\ o PD\ JLYH ULVH WR D FRQFOXVLRQ WKDW WKH 'LVWULFW$WWRUQH\RQWKHRWKHUKDQGPDLQWDLQVWKDWZHQHHG JRYHUQPHQWKDVLQIDFWPDGHDQLPSHUPLVVLEOHGLVWLQFWLRQRQ DSSO\RQO\WKHUDWLRQDOEDVLVWHVWLQRXUDQDO\VLV WKHEDVLVRIWKHFRQWHQWRIWKHUHJXODWHGVSHHFKl'/6,QFY &LW\RI&KDWWDQRRJD)G WK&LU 7KH ,QXSKROGLQJWKHFRQVWLWXWLRQDOLW\RIWKHVWDWXWHXQGHUWKH '/6 &RXUW ZDV QRW SHUVXDGHG WKDW WKH FLW\ RUGLQDQFH LQ )LUVW $PHQGPHQW LQ %RRNPDUW , WKLV FRXUW FRQFOXGHG WKDW TXHVWLRQ ZDV mRQH RI WKRVH FDVHV>@l KRZHYHU WKH &RXUWj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jV HVWDEOLVKPHQWV RQ WKH JURXQGV WKDW WKH RUGLQDQFH ZDV DUJXPHQW WKDW LWV HTXDO SURWHFWLRQ FODLP LPSOLFDWHV XQFRQVWLWXWLRQDO6HH'/6,QF)GDW7KH&LW\RI IXQGDPHQWDO)LUVW$PHQGPHQWULJKWV &KDWWDQRRJD RULJLQDOO\ HQDFWHG WKH RUGLQDQFH LQ  mWR UHJXODWHµDGXOWRULHQWHGHVWDEOLVKPHQWVjZKLFKZHUHGHILQHG $FFRUGLQJWR%RRNPDUWWKH$FWLVXQGHULQFOXVLYHLQDZD\ WRLQFOXGHLQWHUDOLDERWKµDGXOWFDEDUHWVjRUSXEOLFIDFLOLWLHV WKDW UHYHDOV LWV LQWHQWLRQDO FRQWHQWEDVHG GLVFULPLQDWLRQ DJDLQVW DGXOW ERRNVWRUHV YHUVXV OLYH FDEDUHWV  7KH  5LFKODQG%RRNPDUWY1LFKROV 1R 1R 5LFKODQG%RRNPDUWY1LFKROV  XQGHULQFOXVLYHQHVVRIDODZZLOOYLRODWHWKH)LUVW$PHQGPHQW UHDVRQDEOH RSSRUWXQLW\ WR H[SHULPHQW ZLWK VROXWLRQV WR ZKHUH WKH SURRI HVWDEOLVKHV WKDW WKH VWDWXWH LQ TXHVWLRQ LV DGPLWWHGO\ VHULRXV SUREOHPVl LQ UHJXODWLQJ DGXOW PRYLH LQWHQGHG WR UHVWULFW GLVIDYRUHG H[SUHVVLYH FRQWHQW ZKLOH WKHDWHUVERRNVWRUHVDQG VLPLODUHVWDEOLVKPHQWV  VHHDOVR H[HPSWLQJWKHH[SUHVVLRQRIIDYRUHGFRQWHQW&LW\RI/DGXHY 0F*RZDQ Y 0DU\ODQG  86     m7KDW *LOOHR86   KROGLQJWKDWDQH[HPSWLRQ PRUHRUIHZHUDFWLYLWLHVWKDQIDOOZLWKLQWKHH[FHSWLRQVFRXOG PLJKW YLRODWH WKH )LUVW $PHQGPHQW LI LW UHSUHVHQWV mD ZLWKHTXDOUDWLRQDOLW\KDYHEHHQH[FOXGHGIURPWKHJHQHUDO JRYHUQPHQWDODWWHPSWWRJLYHRQHVLGHRIDGHEDWDEOHSXEOLF EDQGRHVQRWPDNHLUUDWLRQDOWKHVHOHFWLRQZKLFKKDVDFWXDOO\ TXHVWLRQDQDGYDQWDJHLQH[SUHVVLQJLWVYLHZVWRWKHSHRSOHl  EHHQPDGHl  )UDQNIXUWHUsFRQFXUULQJ  $OWKRXJK LQ VRPH FDVHV WKH )LUVW $PHQGPHQW LV YLRODWHG EHFDXVHmWKHXQGHULQFOXVLYHQHVVRIDODZnLHWKHIDLOXUHRI 7KH7HQQHVVHHOHJLVODWXUHDUULYHGDWDSODXVLEOHVWHSE\ WKHJRYHUQPHQWWRUHJXODWHRWKHUVLPLODUDFWLYLW\nPD\JLYH VWHSDSSURDFKWRDGGUHVVLQJWKHVHULVNV7KLVLVWKHNLQGRI ULVHWRDFRQFOXVLRQWKDWWKHJRYHUQPHQWKDVLQIDFWPDGHDQ MXGJPHQWWKDWLVFRPPLWWHGWRVWDWHDQGIHGHUDOOHJLVODWXUHV LPSHUPLVVLEOHGLVWLQFWLRQRQWKHEDVLVRIWKHFRQWHQWRIWKH UDWKHUWKDQWRWKHFRXUWV6HH&LW\RI1HZ2UOHDQVY'XNHV UHJXODWHGVSHHFKlVXFKDFRQFOXVLRQLVQRWSRVVLEOHZKHUHWKH 86   m,QVKRUWWKHMXGLFLDU\LVQRWWRVLW FRQWHQW RI WKH GLIIHUHQWO\ UHJXODWHG VSHHFK LV mYLUWXDOO\ DVDVXSHUOHJLVODWXUHWRMXGJHWKHZLVGRPRUGHVLUDELOLW\RI LGHQWLFDOl'/6Y&LW\RI&KDWWDQRRJD)G OHJLVODWLYHSROLF\GHWHUPLQDWLRQVPDGHLQDUHDVWKDWQHLWKHU Q WK &LU   KROGLQJ LQ UHMHFWLQJ D VLPLODU DIIHFWIXQGDPHQWDOULJKWVQRUSURFHHGDORQJVXVSHFWOLQHVl  XQGHULQFOXVLYHQHVV FKDOOHQJH WKDW D VWDWXWH UHJXODWLQJ OLYH *LYHQWKHRYHUZKHOPLQJSUHFHGHQWXSKROGLQJOHJLVODWLYHVWHS FDEDUHWVGLIIHUHQWO\WKDQRWKHUIRUPVRIDGXOWHQWHUWDLQPHQW E\VWHS UHIRUP HIIRUWV DQG WKH ODFN RI DQ\ LQYLGLRXV ZDVQRWFRQWHQWEDVHGEHFDXVHWKHFRQWHQWRIWKHGLIIHUHQWO\ GLVFULPLQDWLRQ LQ H[HPSWLQJ OLYH FDEDUHWV IURP WKH $FWjV UHJXODWHGPRGHVRIH[SUHVVLRQZDVmYLUWXDOO\LGHQWLFDOl  RSHUDWLQJKRXU SURYLVLRQV ZH KROG WKDW WKH $FW EHDUV D UDWLRQDOUHODWLRQWRDOHJLWLPDWHJRYHUQPHQWDOSXUSRVHDQG %RRNPDUWjV HTXDO SURWHFWLRQ FODLP GRHV QRW LPSOLFDWH WKHUHIRUHGRHVQRWYLRODWHWKH(TXDO3URWHFWLRQ&ODXVH IXQGDPHQWDO )LUVW $PHQGPHQW ULJKWV EHFDXVH %RRNPDUW RIIHUVQRHYLGHQFHWKDWWKHH[SUHVVLYHFRQWHQWRIOLYHFDEDUHWV %RRNPDUWjVILQDODUJXPHQWLVWKDWWKHHQWLUH$FWPXVWEH LVGLIIHUHQWLQDQ\PHDQLQJIXOUHVSHFWIURPWKDWRIWKHDGXOW GHFODUHGXQFRQVWLWXWLRQDOLIDQ\SDUWLVKHOGLQYDOLG,WFODLPV ERRNVWRUHVVXEMHFWWRWKHRSHUDWLQJKRXUUHVWULFWLRQVLPSRVHG WKDWEHFDXVHWKH$FWODFNVDVHYHUDELOLW\FODXVHWKHSURYLVLRQV E\WKH$FW%HFDXVHWKHH[SUHVVLYHFRQWHQWRIWKHUHJXODWHG UHJDUGLQJYLHZLQJERRWKFRQILJXUDWLRQVPXVWDOVREHVWUXFN OLYH FDEDUHWV LV mYLUWXDOO\ LGHQWLFDOl WR WKDW RI DGXOW GRZQ*LYHQRXUFRQFOXVLRQWKDWWKH$FWGRHVQRWYLRODWHWKH ERRNVWRUHVWKHVWDWXWHFDQQRWEHVDLGWRGLVFULPLQDWHDJDLQVW (TXDO 3URWHFWLRQ &ODXVH KRZHYHU ZH QHHG QRW DGGUHVV WKHH[SUHVVLYHFRQWHQWRIWKHERRNVWRUHVDQGLQIDYRURIWKDW %RRNPDUWjVDUJXPHQWFRQFHUQLQJZKHWKHUWKHSURYLVLRQVRI RIWKHOLYHFDEDUHWV'/6)GDW WKH$FWDUHVHYHUDEOH 7RVXSSRUWWKHDUJXPHQWWKDWZHVKRXOGLQIHUFRQWHQWEDVHG ,,,&21&/86,21 GLVFULPLQDWLRQIURPWKHIDFWWKDWWKHVHFRQGDU\HIIHFWVRIWKH OLYHFDEDUHWVDQGDGXOWERRNVWRUHVDUHWKHVDPHWKHGLVVHQW )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH UHOLHV XSRQ D VLQJOH FODXVH IRXQG LQ '/6 WR WKH HIIHFW WKDW MXGJPHQWRIWKHGLVWULFWFRXUW QRQHRIWKHXQUHJXODWHGDFWLYLWLHVLGHQWLILHGE\'/6mFDUULHV ZLWK LW WKH VDPH GDQJHU RI FULPH DQG GLVHDVH WKDW DGXOW FDEDUHWVGRl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jV VLPLODUWRWKHRQHUDLVHGE\%RRNPDUW$WLVVXHZDVDFLW\ mXQGHULQFOXVLYHQHVVlFRQVWLWXWHVFRQWHQWEDVHGGLVFULPLQDWLRQ RUGLQDQFH SURKLELWLQJ HQWHUWDLQHUV DW DGXOWRULHQWHG LQYLRODWLRQRIWKH(TXDO3URWHFWLRQ&ODXVHRIWKH)RXUWHHQWK HVWDEOLVKPHQWVIURPDSSURDFKLQJZLWKLQVL[IHHWRIFXVWRPHUV $PHQGPHQW%XWDVZHKDYHGLVFXVVHGDERYHLQGHWHUPLQLQJ HPSOR\HHVRURWKHUHQWHUWDLQHUVGXULQJDSHUIRUPDQFH7KH WKH SURSHU OHYHO RI VFUXWLQ\ DQ LQIHUHQFH RI FRQWHQWEDVHG RUGLQDQFHZDVXSKHOGGHVSLWHWKHFLW\jVIDLOXUHWRDSSO\DQ\ GLVFULPLQDWLRQ LV LQFRQVLVWHQW ZLWK WKH XQFRQWURYHUWHG IDFW FRPSDUDEOHUHVWULFWLRQVWRVSHHFKZLWKmYLUWXDOO\LGHQWLFDOl WKDW WKH H[SUHVVLYH FRQWHQW RI OLYH FDEDUHWV LV YLUWXDOO\ H[SUHVVLYHFRQWHQWVXFKDVQXGLW\RQFDEOHWHOHYLVLRQ'/6 LGHQWLFDOWRWKDWRIDGXOWERRNVWRUHV'/6)GDW )GDW$VWKHGLVVHQWSRLQWVRXWWKH'/6FRXUW QRWHG WKDW WKH VWDWHjV mVHFRQGDU\ HIIHFWVl UDWLRQDOH IRU WKH :HFRQFOXGHWKDWWKHKLVWRU\EHKLQGWKH$FWjVSDVVDJHDQG VWDWXWHjV GLVSDUDWH WUHDWPHQW RI OLYH FDEDUHWV YHUVXV DGXOW WKHYLUWXDOO\LGHQWLFDOH[SUHVVLYHFRQWHQWDVEHWZHHQOLYHDGXOW FDEOHWHOHYLVLRQZDVVXSSRUWHGE\WKHIDFWWKDWWKHFRQWHQWRI FDEDUHWV DQG DGXOW ERRNVWRUHV EHOLHV WKH QRWLRQ WKDW WKH WKHWZRIRUPVRIH[SUHVVLRQZDVWKHVDPHEXWWKHVHFRQGDU\ 7HQQHVVHHOHJLVODWXUHPDGHDQLPSHUPLVVLEOHGLVWLQFWLRQRQ HIIHFWVZHUHGLIIHUHQW'/6)GDW WKHEDVLVRIFRQWHQWRUWKDWWKHRSHUDWLQJKRXUVH[HPSWLRQRI WKHOLYHFDEDUHWVZDVLQYLGLRXV7KLVFRXUWKDVGHWHUPLQHG ,QWKHSUHVHQWFDVHWKHVWDWHjVQRQGLVFULPLQDWRU\UDWLRQDOH WKDW m>D@ VWDWH OHJLVODWXUH PD\ LPSOHPHQW LWV SURJUDP RI LQ VXSSRUW RI WKH $FWjV RSHUDWLQJKRXU UHVWULFWLRQV ZRXOG UHIRUPE\JUDGXDOO\DGRSWLQJUHJXODWLRQVWKDWRQO\SDUWLDOO\ LQGHHGEHEROVWHUHGLIDVLQ'/6WKHGLVSDUDWHWUHDWPHQWRI DPHOLRUDWHDSHUFHLYHGHYLOl,QUH*UDQGs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m$VWDWXWHLVQRW IROORZLQJ\HDU6HH5LSSOLQJHUY &ROOLQV)G LQYDOLG XQGHU WKH &RQVWLWXWLRQ EHFDXVH LW PLJKW KDYH JRQH  WK &LU   KROGLQJ WKDW $UL]RQDjV REVFHQLW\ IDUWKHUWKDQLWGLGl 0RUHRYHUWKHOHJLVODWXUHPD\VHOHFWRQH VWDWXWH ZKLFK SURYLGHG DQ H[HPSWLRQ IRU FDEOH WHOHYLVLRQ SKDVHRIRQHILHOGDQGDSSO\DUHPHG\WKHUHQHJOHFWLQJWKH RSHUDWRUV EXW QRW ERRNVHOOHUV GLG QRW YLRODWH WKH (TXDO RWKHUV6HH W@HQGLQJ WR H[FLWH RGLXP LOO ZLOO RU HQY\ OLNHO\ WR JLYH $V WKH 6XSUHPH &RXUW H[SODLQHG LQ :LOOLDPVRQ Y /HH RIIHQVH HVS XQMXVWO\ DQG LUULWDWLQJO\ GLVFULPLQDWLQJl ,G 2SWLFDORI2NOD,QF86   FLWLQJ :HEVWHUjV 6HFRQG ,QWHUQDWLRQDO 'LFWLRQDU\ 
Source:  CourtListener

Can't find what you're looking for?

Post a free question on our public forum.
Ask a Question
Search for lawyers by practice areas.
Find a Lawyer