Elawyers Elawyers
Washington| Change

Virts v. Consol Freightways, 00-5501 (2002)

Court: Court of Appeals for the Sixth Circuit Number: 00-5501 Visitors: 12
Filed: Apr. 04, 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 '$9,' 9,576 ; 3ODLQWLII$SSHOODQW    1R Y  !  &2162/,'$7('  )5(,*+7:$ $@ UHDVRQ FDQQRW EH SURYHG WR EH µD SUHWH[W IRU PHDQLQJDUXQZKHUHWKHGULYHUPDNHVDGHOLYHU\DQGUHWXUQV GLVFULPLQDWLRQjXQOHVVLWLVVKRZQERWKWKDWWKHUHDVRQZDV WRWKH1DVKYLOOH
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 '$9,' 9,576 ; 3ODLQWLII$SSHOODQW    1R Y  !  &2162/,'$7('  )5(,*+7:$ $@ UHDVRQ FDQQRW EH SURYHG WR EH µD SUHWH[W IRU PHDQLQJDUXQZKHUHWKHGULYHUPDNHVDGHOLYHU\DQGUHWXUQV GLVFULPLQDWLRQjXQOHVVLWLVVKRZQERWKWKDWWKHUHDVRQZDV WRWKH1DVKYLOOHWHUPLQDORQWKHVDPHGD\ DmOD\GRZQ IDOVHDQGWKDWGLVFULPLQDWLRQZDVWKHUHDOUHDVRQl6W0DU\jV UXQlPHDQLQJDUXQZKHUHWKHGULYHUKDVDQRYHUQLJKWVWD\ +RQRU&WUY+LFNV86   HPSKDVLVLQ EHIRUHUHWXUQLQJWRWKHKRPHWHUPLQDODQG DmVOHHSHUUXQl RULJLQDO VHH/RJDQY'HQQ\jV,QF)G WK PHDQLQJDUXQZKHUHWZRGULYHUVDUHGLVSDWFKHGLQDVOHHSHU &LU  WUXFN,QDGGLWLRQDQH[WUDERDUGGULYHUPD\SODFHKLVQDPH RQDFDOOEORFNDQGUHVWULFWKLVDYDLODELOLW\E\VHOHFWLQJDmQR ,Q LWV PRWLRQ IRU VXPPDU\ MXGJPHQW RQ WKLV LVVXH VOHHSHUl RQ WKH ERDUG PHDQLQJ WKDW KH ZLOO DFFHSW DOO EXW 'HIHQGDQW GLG QRW GLVSXWH WKDW 3ODLQWLII KDG HVWDEOLVKHG D VOHHSHU UXQV RU E\ VHOHFWLQJ mWXUQ UXQVl  3ODLQWLII GLG QRW SULPDIDFLHFDVHRIUHWDOLDWRU\GLVFULPLQDWLRQDQGIRFXVHGLWV SODFHDQ\UHVWULFWLRQVE\KLVQDPHLQDVPXFKDVDFFRUGLQJWR DUJXPHQWRQWKHUHDVRQIRU3ODLQWLIIjVGLVFKDUJHo3ODLQWLIIjV 3ODLQWLII UHIXVLQJ WR GR mVOHHSHU UXQVl FRXOG VLJQLILFDQWO\ GLVKRQHVW\LQFRQQHFWLRQZLWKKLVDOWHULQJWKHWLPHRQKLVSD\ LPSDFW 3ODLQWLIIjV LQFRPH SDUWLFXODUO\ LQ VORZ SHULRGV VKHHW o FODLPLQJ WKDW QR JHQXLQH LVVXH RI PDWHULDO IDFW 0RUHRYHU'HIHQGDQWDJUHHVWKDWMXVWEHFDXVHDGULYHUSODFHV UHPDLQHG IRU WULDO WKDW WKLV UHDVRQ ZDV OHJLWLPDWH DQG DUHVWULFWLRQE\KLVQDPHGRHVQRWQHFHVVDULO\PHDQWKDWKH QRQGLVFULPLQDWRU\'HIHQGDQWDUJXHGDVLWGRHVRQDSSHDO ZLOOQHYHUEHUHTXLUHGWRPDNHDVOHHSHUUXQ WKDWEHFDXVHLWKHOGmDQKRQHVWEHOLHIlWKDW3ODLQWLIIHQJDJHG LQ WKLV GLVKRQHVW\ 3ODLQWLII FRXOG QRW HVWDEOLVK SUHWH[W  ,Q $ 3ODLQWLIIjV)LUVW,QFLGHQWRI5HIXVDOWRGRDm6OHHSHU VXSSRUW RI LWV FODLP 'HIHQGDQW UHOLHG XSRQ WKLV &RXUWjV 5XQlZLWKD)HPDOH GHFLVLRQLQ6PLWK Y &KU\VOHU)G WK&LU  ZKHUHLQWKH&RXUWKHOGWKDWVRORQJDVWKHHPSOR\HULV 2QRUDERXW'HFHPEHURU3ODLQWLIIUHFHLYHGD DEOH WR GHPRQVWUDWH WKDW LW KHOG DQ KRQHVW EHOLHI IRU LWV WHOHSKRQHFDOOIURP'LVSDWFKHU 'DQQ\%HQQHWWGLVSDWFKLQJ HPSOR\PHQW DFWLRQ WKHQ WKH HPSOR\HH FDQQRW HVWDEOLVK 3ODLQWLIIRQDVOHHSHUUXQ%HQQHWWJDYH3ODLQWLIIDFKRLFHRI SUHWH[WHYHQLILWLVODWHUHVWDEOLVKHGWKDWWKHHPSOR\HUjVEHOLHI WZRGLIIHUHQWVOHHSHUUXQVDQG3ODLQWLIIFKRVHWKHRQHZLWK ZDVPLVWDNHQ7KHGLVWULFWFRXUWDJUHHGZLWK'HIHQGDQWDQG m&DUWHUl:KHQ3ODLQWLIIDUULYHGDWWKH1DVKYLOOHWHUPLQDOIRU LW LV WKLV EDVLV XSRQ ZKLFK WKH FRXUW JUDQWHG 'HIHQGDQW WKH UXQ KH DVNHG ZKR m&DUWHUl ZDV DQG 3ODLQWLII ZDV VXPPDU\MXGJPHQW LQIRUPHGWKDWm&DUWHUlZDV/LQGD&DUWHUDIHPDOH3ODLQWLII WROG%HQQHWWDWWKDWWLPHWKDWKHFRXOGQRWDFFHSWDGLVSDWFKRQ :HQHHGQRWUHDFKWKHFRUUHFWQHVVRIWKHGLVWULFWFRXUWjV DVOHHSHUUXQZLWKDIHPDOHGULYHUEHFDXVH RI KLVUHOLJLRXV GHFLVLRQ LQ WKLV UHJDUG EHFDXVH 3ODLQWLII ILOHG D JULHYDQFH FRQYLFWLRQV$FFRUGLQJWR3ODLQWLIIKDYLQJEHHQmERUQDJDLQl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l6HH+DUGLVRQ86DW WKH\ ZRQGHU ZKDW NLQG RI mKDQN\ SDQN\l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jV UHOLJLRXV $JHQWDQGWKH'LVSDWFK0DQDJHUXSRQUHWXUQWRUHYLHZZRUN REOLJDWLRQ  UXOHVDQGFRQWUDFWSURFHGXUHV'HIHQGDQWFRQWHQGVWKDWE\ DOORZLQJVXFKDVZDSWKHVHQLRULW\SURYLVLRQVRIWKH10)$ ,, 5(7$/,$725 WKHHPSOR\HU@WRZDLWXQWLOLWIHOWWKH WKDWDPHHWLQJKDGEHHQVFKHGXOHGRQsXQHWRGLVFXVV HIIHFWV RI >WKH SODLQWLIIjV@ SURSRVDO E\ IRUHJRLQJ D UXQ RU 3ODLQWLIIjVIDLOXUHWRUHSRUWIRUWKHUXQ VNLSSLQJRYHUDIHPDOHGULYHUl:HEHU)GDW FLWLQJ %HDGOH Y &LW\ RI 7DPSD  )G  WK &LU 7KH PHHWLQJ ZDV KHOG RQ sXQH   DV VFKHGXOHG  ,QDGGLWLRQWKH:HEHUFRXUWIRXQGWKDWWKHHPSOR\HU 7KRVH LQ DWWHQGDQFH LQFOXGHG 3ODLQWLII ,QWHUQDWLRQDO ZDV QRW UHTXLUHG WR PDNH DQ HIIRUW WR DFFRPPRGDWH WKH %URWKHUKRRGRI7HDPVWHUV/RFDO%XVLQHVV$JHQWsHUU\ SODLQWLII ZKHUH DQ\ DWWHPSW DW GRLQJ VR ZRXOG EH IUXLWOHVV 6HDERUQ8QLRQ6WHZDUG/OR\G9DQ=DQGW1DVKYLOOH7HUPLQDO LQDVPXFKDVWKHULJKWVRIRWKHUHPSOR\HHVZRXOGEHYLRODWHG 0DQDJHU*DU\7DQNHUVOH\DQG'LVSDWFK2SHUDWLRQV0DQDJHU DQGSURYLGLQJWKHDFFRPPRGDWLRQZRXOGWKHUHIRUHSRVHDQ +HDUG3ODLQWLIIjVSDVWRUZDVDOVRLQDWWHQGDQFHDQGH[SODLQHG XQGXHEXUGHQ,G FLWLQJ((2&Y7RZQOH\(QJjJ 0IJ 3ODLQWLIIjVUHOLJLRXVEHOLHIVLQFRQQHFWLRQZLWKKLVUHIXVDOWR &R)G WK&LU  JRRQVOHHSHUUXQVZLWKIHPDOHV3ODLQWLIIDVZHOOH[SODLQHG KLVUHOLJLRXVEHOLHIVUHJDUGLQJWKHPDWWHUDWWKHHQGRIWKH $OWKRXJK :HEHU GLG QRW LQYROYH WKH UROH D FROOHFWLYH PHHWLQJ3ODLQWLIIZDVWROGWKDWKHZRXOGEHQRWLILHGUHJDUGLQJ EDUJDLQLQJDJUHHPHQWZRXOGSOD\LQUHODWLRQWRWKHSURSRVHG WKH ILQDO GHFLVLRQ FRQFHUQLQJ KLV HPSOR\PHQW  7ZR GD\V DFFRPPRGDWLRQ:HEHULVRQDOOIRXUVZLWKWKHPDWWHUDWKDQG ODWHU RQ sXQH   7DQNHUVOH\ DQG +HDUG WHOHSKRQHG LQDOORWKHUUHOHYDQWUHVSHFWV$VLQ:HEHUDQ\RI3ODLQWLIIjV 3ODLQWLIIDQGLQIRUPHGKLPWKDW'HIHQGDQWjVSRVLWLRQZDVWKDW SURSRVDOVWRDFFRPPRGDWHKLVUHOLJLRXVEHOLHIDJDLQVWJRLQJ 3ODLQWLIIYROXQWDULO\TXLWEHFDXVH3ODLQWLIIIDLOHGWRDFFHSWD RQVOHHSHUUXQVZLWKIHPDOHVKDGWKHSRWHQWLDORIDGYHUVHO\ GLVSDWFKRQ0D\'HIHQGDQWIROORZHGXSZLWKD LPSDFWLQJRWKHUGULYHUVLQDVPXFKDVWKHGULYHUZKRZRXOG OHWWHUWR3ODLQWLIIH[SODLQLQJWKDWE\3ODLQWLIIjVUHIXVDOWRULGH WDNH 3ODLQWLIIjV SODFH PD\ KDYH DFWXDOO\ UHFHLYHG D OHVV ZLWK TXDOLILHG IHPDOH GULYHUV RQ VOHHSHU UXQV DV ZHOO DV SURILWDEOH UXQ RU D UXQ UHVXOWLQJ LQ OHVV UHVW DQG WLPH RII 3ODLQWLIIjVUHTXHVWWRQRWWREHDVNHGWRULGHRQVOHHSHUUXQV EHWZHHQUXQV7KHUHIRUHVHQLRULW\DQGFROOHFWLYHEDUJDLQLQJ ZLWKIHPDOHVLQWKHIXWXUH'HIHQGDQWZDVEHLQJIRUFHGmWR DJUHHPHQWVDVLGH:HEHUFOHDUO\VKRZVWKDW'HIHQGDQWZRXOG GLVFULPLQDWHDQGYLRODWHWKHVHQLRULW\ULJKWVRI>3ODLQWLIIjV@ VXIIHU DQ XQGXH KDUGVKLS LQ DWWHPSWLQJ WR DFFRPPRGDWH IHOORZHPSOR\HHVl s$DW 7KHOHWWHUFRQFOXGHG 3ODLQWLIIjV UHOLJLRXV EHOLHI EHFDXVH 'HIHQGDQWjV RWKHU HPSOR\HHV ZHUH OLNHO\ WR EH DGYHUVHO\ DIIHFWHG E\ DQ\ 7KHUHIRUHE\EHLQJJLYHQSULRUQRWLFHRQ0D\ DFFRPPRGDWLRQ  6HH :HEHU  )G DW  m7KH PHUH DQGIROORZXSPHHWLQJKHOGRQDERYHOLVWHGGDWH>sXQH SRVVLELOLW\RIDQDGYHUVHLPSDFWRQFRZRUNHUVDVDUHVXOWRI @\RXKDYHEHHQJLYHQPRUHWKDQRQHRSSRUWXQLW\WR µVNLSSLQJ RYHUj LV VXIILFLHQW WR FRQVWLWXWH DQ XQGXH UHFRQVLGHU \RXU UHIXVDO RI D GLVSDWFK  &RQVROLGDWHG KDUGVKLSl   ,QGHHG m7LWOH 9,, GRHV QRW FRQWHPSODWH VXFK )UHLJKWZD\VFRQVLGHUVWKLVDYROXQWDU\TXLWIRUUHIXVLQJ XQHTXDOWUHDWPHQW7KHUHSHDWHGXQHTXLYRFDOHPSKDVLVRI WRDFFHSWDGLVSDWFKZKHQFDOOHG W@KHPHUHSRVVLELOLW\ UHWXUQHGWRZRUN RIDQDGYHUVHLPSDFWRQFRZRUNHUVDVDUHVXOWRIµVNLSSLQJ RYHUjLVVXIILFLHQWWRFRQVWLWXWHDQXQGXHKDUGVKLSl,G FLWLQJ & 3ODLQWLII)LOHVD7LWOH9,,5HOLJLRXV'LVFULPLQDWLRQ +DUGLVRQ86DW ,QVXSSRUWRILWVKROGLQJWKHFRXUW &RPSODLQWZLWKWKH((2& WKH7HQQHVVHH+XPDQ DQDORJL]HGWR/HHY$%))UHLJKW6\VWHP,QF)G 5LJKWV&RPPLVVLRQ  WK&LU ZKHUHLQWKH&RXUWRI$SSHDOVIRUWKH 7HQWK&LUFXLWIRXQGWKDWWKHmYROXQWDU\UXQDURXQGlV\VWHP 3ODLQWLII ILOHG D 7LWOH 9,, 5HOLJLRXV 'LVFULPLQDWLRQ SURSRVHG E\ WKH SODLQWLII DV DQ DFFRPPRGDWLRQ IRU KLV &RPSODLQWZLWKWKH((2&DQGWKH7HQQHVVHH+XPDQ5LJKWV UHOLJLRXVEHOLHIDJDLQVWZRUNLQJRQ6DWXUGD\VFRQVWLWXWHGDQ &RPPLVVLRQDQGUHFHLYHGDULJKWWRVXHOHWWHURQRUDERXW XQGXHKDUGVKLSWRWKHHPSOR\HULQDVPXFKDVWKHXQDYRLGDEOH sDQXDU\3ODLQWLIIILOHGKLVRULJLQDO&RPSODLQWLQWKH  9LUWVY&RQVROLGDWHG)UHLJKWZD\V&RUS 1R 1R 9LUWVY&RQVROLGDWHG)UHLJKWZD\V&RUS  8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH 0LGGOH 'LVWULFW RI SRVVLEOHDFFRPPRGDWLRQVl VHHDOVR:HEHUY5RDGZD\ 7HQQHVVHHRQ$SULO ([SUHVV,QF)G WK&LU  GHFOLQLQJWR HPEUDFH WKH SODLQWLIIjV FODLP WKDW WKH HPSOR\HUjV FRQFHUQV ' 3ODLQWLIIjV7HUPLQDWLRQ$OOHJHGO\IRU)DOVLI\LQJKLV UHJDUGLQJKLVUHOLJLRXVDFFRPPRGDWLRQZHUHWRRVSHFXODWLYH 3D\6KHHW EHFDXVHWKH\KDG\HWWRRFFXU %HDGOHY&LW\RI7DPSD )G WK&LU  ILQGLQJWKDWWKH&LW\GLGQRWKDYH 2QsDQXDU\3ODLQWLIIZDVGLVSDWFKHGRQDUXQWR WRDFFRPPRGDWHWKHHPSOR\HHjVUHOLJLRXVEHOLHIRQWKHEDVLV (YDQVYLOOOH,QGLDQDDQGXSRQUHWXUQWR1DVKYLOOH3ODLQWLII RIDFRQFHUQWKDWWKHDFFRPPRGDWLRQZRXOGQHJDWLYHO\DIIHFW ZDV GLVSDWFKHG RQ D UXQ WR %RZOLQJ *UHHQ .HQWXFN\ WKHRWKHUHPSOR\HHV  3ODLQWLII GURYH 'HIHQGDQWjV WUDFWRU  WR DQG IURP (YDQVYLOOH DQG GURYH WUDFWRU  D QHZ WUDFWRU IURP 3ODLQWLII DOVR DWWHPSWV WR DYRLG VXPPDU\ MXGJPHQW E\ 1DVKYLOOH WR %RZOLQJ *UHHQ  3ODLQWLII DUULYHG LQ %RZOLQJ FODLPLQJWKDWXQGHU((2&Y$UOLQJWRQ7UDQVLW0L[,QF *UHHQDW PHDVXUHGLQKXQGUHWKVRIDQKRXU RUDERXW )G WK&LU m>D@WDPLQLPXP>'HIHQGDQW@ DP3ODLQWLIIZDONHGLQWRWKHGLVSDWFKRIILFHDOVRFDOOHG KDGDQREOLJDWLRQWRH[SORUHDYROXQWDU\ZDLYHURIVHQLRULW\ WKHGULYHUVDOHVPDQURRPSXQFKHGWKHFORFNFRPSOHWHGWKH ULJKWVlEHIRUHGHFOLQLQJWRDFFRPPRGDWH3ODLQWLII+RZHYHU SDSHUZRUN DQG KDQGHG LW WR /DQD 7LWOH9,,@WRUHTXLUHWKHDEURJDWLRQRI WKH VHQLRULW\ ULJKWV RI VRPH HPSOR\HHV LQ RUGHU WR 3ODLQWLII QHHGHG WR VZLWFK KLV JHDU DQG SHUIRUP DQ\ DFFRPPRGDWHWKHUHOLJLRXVQHHGVRIRWKHUVl,GDWQ QHFHVVDU\ SUHWULS LQVSHFWLRQV EHIRUH GHSDUWLQJ  +H ZHQW $QGVRLWJRHVWKDWLQWKHPDWWHUDWKDQGWKHGLVWULFWFRXUW RXWVLGH GLG ZKDW ZDV QHHGHG WR UHWXUQ WR 1DVKYLOOH FDPH SURSHUO\ IRXQG WKDW ZKHUH DQ\ RI 3ODLQWLIIjV SURSRVHG EDFN DQG SXQFKHG WKH WLPH FORFN D WKLUG WLPH  3ODLQWLII DFFRPPRGDWLRQV KDG WKH DELOLW\ RI YLRODWLQJ WKH FROOHFWLYH VWDUWHGWRILOORXWDQRWKHUOLQHRQKLVSD\VKHHWWRH[SODLQWKH EDUJDLQLQJDJUHHPHQWE\LQWHUIHULQJZLWKWKHVHQLRULW\V\VWHP DGGLWLRQDO WLPH EHWZHHQ KLV VHFRQG DQG WKLUG SXQFKHV EXW 'HIHQGDQWZDVQRWUHTXLUHGWRDFFRPPRGDWH3ODLQWLII6HHLG VWRSSHGWRDVN ,@WLVSRVVLEOHIRUDQHPSOR\HUWRSURYHXQGXH VLJQ3ODLQWLIIjVSD\VKHHWDJDLQ+HDUGDOOHJHGO\WROG 3ODLQWLII@ DQG WKH ((2& LQVLVW WKDW WKH 3ODLQWLIIVKRXOGEHGLVFKDUJHG7KRPDVWKHQH[DPLQHGWKH VWDWXWRU\ REOLJDWLRQ WR DFFRPPRGDWH UHOLJLRXV QHHGV SD\VKHHWDJUHHGWKDWLWKDGEHHQDOWHUHGDQGWROGsRKQVRQWR WDNHV SUHFHGHQFH RYHU ERWK WKH FROOHFWLYHEDUJDLQLQJ SURFHHGZLWKWKHGLVFKDUJH FRQWUDFWDQGWKHVHQLRULW\ULJKWVRI7:$jV>'HIHQGDQWjV@ RWKHU HPSOR\HHV  :H DJUHH WKDW QHLWKHU D FROOHFWLYH $WDERXWRUSPRQsDQXDU\sRKQVRQ EDUJDLQLQJ FRQWUDFW QRU D VHQLRULW\ V\VWHP PD\ EH 7DQNHUVOH\+HDUG+DVWLQJV sRKQVRQj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†H K 7KH&RXUWZHQWRQWRKROG WKHQGLVFKDUJHGIRUGLVKRQHVW\SXUVXDQWWR$UWLFOHRIWKH WKDWm>W@KXVDEVHQWDGLVFULPLQDWRU\SXUSRVHWKHRSHUDWLRQRI 10)$ DVHQLRULW\V\VWHPFDQQRWEHDQXQODZIXOHPSOR\PHQWSUDFWLFH HYHQLIWKHV\VWHPKDVVRPHGLVFULPLQDWRU\FRQVHTXHQFHVl 3ODLQWLIIILOHGDJULHYDQFHUHJDUGLQJKLVGLVFKDUJHDQGZDV ,G DW   %HFDXVH WKH &RXUW IRXQG QR VXJJHVWLRQ RI D VXEVHTXHQWO\UHWXUQHGWRZRUNE\DJULHYDQFHFRPPLWWHHZLWK GLVFULPLQDWRU\LQWHQWLQWKHHPSOR\HUjVVHQLRULW\V\VWHPWKH KLVVHQLRULW\EDFNSD\DQGUHWLUHPHQWEHQHILWVUHVWRUHG &RXUWKHOGWKDWWKHHPSOR\HUmZDVQRWUHTXLUHGE\7LWOH9,,WR FDUYHRXWDVSHFLDOH[FHSWLRQWRLWVVHQLRULW\V\VWHPLQRUGHU 7KLV &RXUW UHYLHZV D GLVWULFW FRXUWjV RUGHU JUDQWLQJ WR KHOS +DUGLVRQ >WKH SODLQWLII@ WR PHHW KLV UHOLJLRXV VXPPDU\MXGJPHQWGHQRYRsRKQVRQY8QLYRI&LQFLQQDWL REOLJDWLRQVl,GDW )G WK&LU  6XPPDU\MXGJPHQWLV DSSURSULDWH ZKHUH mWKH SOHDGLQJV GHSRVLWLRQV DQVZHUV WR +HUH 'HIHQGDQW FODLPV WKDW DV LQ +DUGLVRQ DQ\ RI LQWHUURJDWRULHV DQG DGPLVVLRQV RQ ILOH WRJHWKHU ZLWK WKH 3ODLQWLIIjVIRXUEHODWHGSURSRVDOVRIDFFRPPRGDWLRQoPDGH DIILGDYLWVLIDQ\VKRZWKDWWKHUHLVQRJHQXLQHLVVXHDVWRDQ\ IRU WKH ILUVW WLPH LQ 3ODLQWLIIjV PRWLRQ IRU SDUWLDO VXPPDU\ PDWHULDO IDFW DQG WKDW WKH PRYLQJ SDUW\ LV HQWLWOHG WR D MXGJPHQW LQ WKH GLVWULFW FRXUW o ZRXOG KDYH UHTXLUHG MXGJPHQWDVDPDWWHURIODZl)HG5&LY3 F  'HIHQGDQWWRYLRODWHWKHVHQLRULW\SURYLVLRQVRIWKHFROOHFWLYH EDUJDLQLQJDJUHHPHQWWKH10)$DQGZRXOGWKHUHIRUHFDXVH , 5(/,*,286',6&5,0,1$7,21&/$,0 XQGXH KDUGVKLS  :H DJUHH KRZHYHU EHIRUH DGGUHVVLQJ 'HIHQGDQWjVFODLPZHQRWHWKDWWKHIDFWWKDW3ODLQWLIIIDLOHGWR 3ODLQWLII DUJXHV WKDW WKH GLVWULFW FRXUW HUUHG LQ JUDQWLQJ UHTXHVW WKHVH DFFRPPRGDWLRQV IURP 'HIHQGDQW LV LQ LWVHOI 'HIHQGDQWjV PRWLRQ IRU VXPPDU\ MXGJPHQW RQ 3ODLQWLIIjV IDWDOWR3ODLQWLIIjVFODLP6HH6ZDQVRQY8QLYRI&LQFLQQDWL FODLPRIUHOLJLRXVGLVFULPLQDWLRQEHFDXVHTXHVWLRQV RIIDFW )G WK&LU  ILQGLQJWKDWWKHSODLQWLIIjV UHPDLQIRUWULDODVWR3ODLQWLIIjVVLQFHUHUHOLJLRXVEHOLHIDQG GLVDELOLW\GLVFULPLQDWLRQmFODLPVIDLODV>WKHSODLQWLII@GLGQRW ZKHWKHU WKDW EHOLHI FRXOG KDYH UHDVRQDEO\ EHHQ UHTXHVWDFFRPPRGDWLRQIURP>WKHGHIHQGDQW@l  DFFRPPRGDWHGE\'HIHQGDQW 3ODLQWLIIjV IRXU SURSRVHG DFFRPPRGDWLRQV PDGH WR WKH $ (VWDEOLVKLQJD&ODLPIRU5HOLJLRXV'LVFULPLQDWLRQ GLVWULFWFRXUWDUHDVIROORZV 8QGHU7LWOH9,,  3ODLQWLII VXJJHVWV WKDW SULRU WR EHJLQQLQJ WR PDNH 7LWOH9,,RIWKH&LYLO5LJKWV$FWRIDVDPHQGHGLQ FDOOV GXULQJ DQ\ FDOO EORFN WKH GLVSDWFKHU VKRXOG  PDNHV LW XQODZIXO IRU DQ HPSOR\HU WR GLVFULPLQDWH GHWHUPLQHZKHWKHUWKHUHLVDSRVVLELOLW\WKDWWKH3ODLQWLII DJDLQVW DQ HPSOR\HH RQ WKH EDVLV RI UHOLJLRQ   86& FRXOGEHSDLUHGZLWKDIHPDOHGULYHURQDVOHHSHUUXQ,I †H D  6SHFLILFDOO\WKHVWDWXWHSURYLGHVWKDWLWLV VRWKHGLVSDWFKHUVKRXOGPRYHWKH3ODLQWLIIjVQDPHWRWKH XQODZIXO IRU DQ HPSOR\HU WR mGLVFKDUJH DQ\ LQGLYLGXDO RU QH[WFDOOEORFNEHIRUHPDNLQJDQ\FDOOV RWKHUZLVHWRGLVFULPLQDWHDJDLQVWDQ\LQGLYLGXDOZLWKUHVSHFW WR KLV FRPSHQVDWLRQ WHUPV FRQGLWLRQV RU SULYLOHJHV RI  :KHQLWLV3ODLQWLIIjVWXUQWREHFDOOHGGXULQJDFDOO HPSOR\PHQWEHFDXVHRIVXFKLQGLYLGXDOjVUHOLJLRQ>@l,G EORFN DQG WKH GLVSDWFKHU QRWHV WKDW 3ODLQWLII ZLOO EH 7KH WHUP mUHOLJLRQl DV XVHG ZLWKLQ 7LWOH 9,, LQFOXGHV mDOO SDLUHGZLWKDIHPDOHGULYHUWKHGLVSDWFKHUZRXOGWUHDW DVSHFWVRIUHOLJLRXVREVHUYDQFHDQGSUDFWLFHDVZHOODVEHOLHI WKH 3ODLQWLII DV LI KH KDG QRW DQVZHUHG WKH SKRQH XQOHVV DQ HPSOR\HU GHPRQVWUDWHV WKDW KH LV XQDEOH WR UHVXOWLQJ LQ WKH 3ODLQWLIIjV QDPH EHLQJ WDNHQ RII WKH UHDVRQDEO\ DFFRPPRGDWH WR DQ HPSOR\HHjV RU SURVSHFWLYH mH[WUDERDUGlIRUHLJKWKRXUV HPSOR\HHjVUHOLJLRXVREVHUYDQFHRUSUDFWLFHZLWKRXWXQGXH  9LUWVY&RQVROLGDWHG)UHLJKWZD\V&RUS 1R 1R 9LUWVY&RQVROLGDWHG)UHLJKWZD\V&RUS  KDUGVKLS RQ WKH FRQGXFW RI WKH HPSOR\HUjV EXVLQHVVl   VLQFHULW\IRUSXUSRVHVRIDSULPDIDFLHFDVHDQGIRFXVHGLWV 86&†H M m7RUHTXLUHDQHPSOR\HUWREHDUPRUHWKDQ GHFLVLRQ RQ ZKHWKHU 'HIHQGDQW FRXOG UHDVRQDEO\ DGHPLQLPLVFRVWLQRUGHUWRDFFRPPRGDWHDQHPSOR\HHjV DFFRPPRGDWH3ODLQWLIIZLWKRXWXQGXHKDUGVKLS$FFRUGLQJO\ UHOLJLRXV EHOLHIV LV DQ XQGXH KDUGVKLSl  &RRSHU Y 2DN ZHVKDOOGRWKHVDPH 5XEEHU&R)G WK&LU  FLWLQJ7UDQV :RUOG$LUOLQHV,QFY+DUGLVRQ86   & :KHWKHU 'HIHQGDQW &RXOG +DYH 5HDVRQDEO\ $FFRPPRGDWHG 3ODLQWLIIjV 5HOLJLRXV 2EMHFWLRQ WR m7KHDQDO\VLVRIDQ\UHOLJLRXVDFFRPPRGDWLRQFDVHEHJLQV *RLQJ RQ 6OHHSHU 5XQV ZLWK )HPDOHV :LWKRXW ZLWKWKHTXHVWLRQRIZKHWKHUWKHHPSOR\HHKDVHVWDEOLVKHGD 8QGXH+DUGVKLS SULPDIDFLHFDVHRIUHOLJLRXVGLVFULPLQDWLRQl6PLWKY3\UR 0LQLQJ &R  )G   WK &LU    7R 7KHGLVWULFWFRXUWFRQFOXGHGWKDW'HIHQGDQWFRXOGQRWKDYH HVWDEOLVKDSULPDIDFLHFDVHDSODLQWLIIPXVWGHPRQVWUDWHWKDW UHDVRQDEO\DFFRPPRGDWHG3ODLQWLIIjVUHOLJLRXVREMHFWLRQWR  KHKROGVDVLQFHUHUHOLJLRXVEHOLHIWKDWFRQIOLFWVZLWKDQ JRLQJ RQ VOHHSHU UXQV ZLWK IHPDOHV LQDVPXFK DV HPSOR\PHQWUHTXLUHPHQW KHKDVLQIRUPHGWKHHPSOR\HU mDFFRPPRGDWLQJWKH3ODLQWLIIjVUHOLJLRXVFRQIOLFWZLOOUHVXOW DERXWWKHFRQIOLFWVDQG KHZDVGLVFKDUJHGRUGLVFLSOLQHG LQ D YLRODWLRQ RI WKH VHQLRULW\ SURYLVLRQV RI WKH FROOHFWLYH IRU IDLOLQJ WR FRPSO\ ZLWK WKH FRQIOLFWLQJ HPSOR\PHQW EDUJDLQLQJDJUHHPHQWDQGDIIHFWWKHVKLIWDQGMRESUHIHUHQFHV UHTXLUHPHQW,G2QFHWKHSODLQWLIIKDVHVWDEOLVKHGDSULPD DQG FRQWUDFWXDO ULJKWV RI RWKHU HPSOR\HHVl  s$ DW  IDFLH FDVH WKH EXUGHQ VKLIWV WR WKH GHIHQGDQW HPSOR\HU WR 5HO\LQJ XSRQ 7UDQV :RUOG $LUOLQHV ,QF Y +DUGLVRQ  VKRZWKDWLWFRXOGQRWUHDVRQDEO\DFFRPPRGDWHWKHHPSOR\HH 86    WKH GLVWULFW FRXUW FRQFOXGHG WKDW VXFK DQ ZLWKRXW XQGXH KDUGVKLS  ,G VHH DOVR &RRSHU  )G DW DFFRPPRGDWLRQ FRQVWLWXWHG DQ mXQGXH KDUGVKLSl DQG ZDV   m7KH UHDVRQDEOHQHVV RI DQ HPSOR\HUjV DWWHPSW WR WKHUHIRUHQRWUHTXLUHGE\7LWOH9,, DFFRPPRGDWH LV GHWHUPLQHG RQ D FDVHE\FDVH EDVLVl &RRSHU)GDW ,Q+DUGLVRQWKH6XSUHPH&RXUWORRNHGDWVHQLRULW\V\VWHPV DV WKH\ UHODWH WR DQ HPSOR\HUjV DWWHPSW WR UHDVRQDEO\ % :KHWKHU3ODLQWLII(VWDEOLVKHGD3ULPD)DFLH&DVH DFFRPPRGDWHDQHPSOR\HHjVVLQFHUHUHOLJLRXVEHOLHIV6HH RI5HOLJLRXV'LVFULPLQDWLRQ +DUGLVRQ86DW,QWKHFRXUVHRIGRLQJVRWKH&RXUW QRWHG WKDW WR DFFRPPRGDWH WKH SODLQWLIIjV FODLP o WKDW WKH 7KHGLVWULFWFRXUWIRXQGWKDWDJHQXLQHLVVXHRIPDWHULDOIDFW HPSOR\HUGLVFULPLQDWHGDJDLQVWWKHSODLQWLIIRQWKHEDVLVRIKLV UHPDLQHGIRUWULDODVWRWKHVLQFHULW\RI3ODLQWLIIjVUHOLJLRXV UHOLJLRQLQIDLOLQJWRSURYLGHWKHSODLQWLIIZLWK6DWXUGD\VRII EHOLHI UHJDUGLQJ VOHHSHU UXQV ZLWK IHPDOHV DQG WKHUHIRUH oWKHHPSOR\HUZRXOGKDYHKDGWRYLRODWHLWVVHQLRULW\V\VWHP GHFOLQHGWRJUDQW'HIHQGDQWjVPRWLRQIRUVXPPDU\MXGJPHQW ,G7KH&RXUWWKHQRSLQHGWKDWLWmZRXOGEHDQRPDORXVWR RQWKHEDVLVWKDW3ODLQWLIIKDGIDLOHGWRSUHVHQWDSULPDIDFLH FRQFOXGH WKDW E\ µUHDVRQDEOH DFFRPPRGDWLRQj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l,G VLQFHULW\RIKLVUHOLJLRXVEHOLHIZDVQRWWKHEDVLVXSRQZKLFK WKH GLVWULFW FRXUW JUDQWHG VXPPDU\ MXGJPHQW  5DWKHU WKH 7KH&RXUWIXUWKHURSLQHGWKDWLWVFRQFOXVLRQZDVVXSSRUWHG FRXUWIRXQGWKDW3ODLQWLIIDGGXFHGVXIILFLHQWHYLGHQFHRIKLV E\ WKH IDFW WKDW VHQLRULW\ V\VWHPV DUH DIIRUGHG VSHFLDO WUHDWPHQWXQGHU7LWOH9,,LWVHOI6HH+DUGLVRQ86DW
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