Elawyers Elawyers
Ohio| Change

Airline Professional v. ABX Air Inc, 00-3980 (2001)

Court: Court of Appeals for the Sixth Circuit Number: 00-3980 Visitors: 3
Filed: Dec. 18, 2001
Latest Update: Mar. 02, 2020
Summary: 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  $LUOLQH3URIHVVLRQDOV 1RV 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  $VVjQY$%;$LU (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS %RDUGjVGHFLVLRQGUHZLWVHVVHQFHIURPWKHDJUHHPHQW:H WKHUHIRUHUHLQVWDWHWKH%RDUGjVGHFLVLRQ 81,7('67$7(6&28572)$33($/6 ,,, )257+(6,;7+&,5&8,7 )RU WKH UHDVRQV VHW IRUWK DERYH ZH DIILUP WKH GLVWULFW BBBBBBBBBBBBBBBBB FRXUWjVGLVPLVVDORI&RXQW,,UHYHUVHWKHGL
More
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  $LUOLQH3URIHVVLRQDOV 1RV 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  $VVjQY$%;$LU (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS %RDUGjVGHFLVLRQGUHZLWVHVVHQFHIURPWKHDJUHHPHQW:H WKHUHIRUHUHLQVWDWHWKH%RDUGjVGHFLVLRQ 81,7('67$7(6&28572)$33($/6 ,,, )257+(6,;7+&,5&8,7 )RU WKH UHDVRQV VHW IRUWK DERYH ZH DIILUP WKH GLVWULFW BBBBBBBBBBBBBBBBB FRXUWjVGLVPLVVDORI&RXQW,,UHYHUVHWKHGLVWULFWFRXUWjVJUDQW RIVXPPDU\MXGJPHQWLQIDYRURIWKH8QLRQRQ&RXQW,DQG UHLQVWDWHWKH%RDUGjVDZDUG $,5/,1( 352)(66,21$/6 ; $662&,$7,21 2) 7+(  ,17(51$7,21$/   1RV %527+(5+22' 2)  7($067(56 /2&$/ 81,21 !  12  $)/&,2  3ODLQWLII$SSHOOHH  &URVV$SSHOODQW   Y    $%; $,5 ,1&  'HIHQGDQW$SSHOODQW  &URVV$SSHOOHH   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL 1Rn6DQGUD6%HFNZLWK'LVWULFWsXGJH $UJXHG2FWREHU 'HFLGHGDQG)LOHG'HFHPEHU %HIRUH.(,7+.(11(' G@ DGGLWLRQDO UHTXLUHPHQWV QRW H[SUHVVO\ UHTXLUHGQHZHPSOR\HHVLQFOXGLQJFUHZPHPEHUVWRVLJQD SURYLGHGIRULQWKHDJUHHPHQWl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jV GHFLVLRQ IDLOV WR GUDZ LWV HVVHQFHIURPWKHDJUHHPHQWZKHUHLQWHUDOLDLWLPSRVHV ,Q  $%; GLVFRYHUHG WKDW PHFKDQLFVj WRROV ZHUH DGGLWLRQDOUHTXLUHPHQWVQRWH[SUHVVO\SURYLGHGIRULQWKH IUHTXHQWO\ PLVVLQJ IURP WKH ZRUNSODFH DQG GHFLGHG WR DJUHHPHQW6HH%HDFRQsRXUQDO3XEOLVKLQJ&RY$NURQ LPSOHPHQW UDQGRP VHDUFKLQJ LQ DQ HIIRUW WR VROYH WKH 1HZVSDSHU*XLOG/RFDO1R)G WK SUREOHP7KHUDQGRPVHDUFKLQJZDVSULPDULO\WDUJHWHGDWWKH JDWHZKHUHPHFKDQLFVOHIWEXWDFRPSDQ\RIILFLDOWHVWLILHG WKDW WKH SROLF\ ZDV DSSOLFDEOH WR DOO HPSOR\HHV  $JDLQ  HPSOR\HHV ZHUH QRWLILHG RI WKH SROLF\ FKDQJH E\ EXOOHWLQ $%; PDNHV WKH VSHFLRXV DUJXPHQW WKDW DQ DUELWUDWRUjV GHFLVLRQ PD\ ERDUG SRVWLQJV  $OWKRXJK WKH QHZ SROLF\ UHVXOWHG LQ D EH RYHUWXUQHG RQO\ ZKHUH DOO IRXU RI WKHVH FRQGLWLRQV DUH PHW 7KLV GHFUHDVH LQ WKH WKHIW RI PHFKDQLFVj WRROV $%; QRWLFHG DQ DUJXPHQW LV FRQWUDU\ WR FRPPRQ VHQVH DV ZHOO DV VHYHUDO 6L[WK &LUFXLW LQFUHDVH LQ WKH WKHIW RI FXVWRPHU SDFNDJHV  $W WKLV SRLQW $%;GUDIWHGDUHYLVHGVHDUFKSROLF\,QDPHPRUDQGXPVHQW FDVHV RYHUWXUQLQJ DUELWUDWLRQ DZDUGV ZKHUH RQO\ VRPH RI WKH FRQGLWLRQV DUH PHW 6HH HJ $SSDODFKLDQ 5HJLRQDO +HDOWKFDUH  )G DW  DIILUPLQJ ORZHU FRXUWjV GHFLVLRQ WR YDFDWH WKH DZDUG DIWHU FRQFOXGLQJ WKDW WR DOO HPSOR\HHV LQ HDUO\  $%; LQGLFDWHG WKDW LW ZDV FRQGLWLRQV  DQG  ZHUH PHW ZLWKRXW GLVFXVVLQJ FRQGLWLRQV  RU    $LUOLQH3URIHVVLRQDOV 1RV 1RV $LUOLQH3URIHVVLRQDOV  $VVjQY$%;$LU $VVjQY$%;$LU LPSOHPHQWLQJ D QHZ SHUPDQHQW VHDUFK SROLF\ WKDW ZRXOG MXULVGLFWLRQRYHUPLQRUGLVSXWHVWKHVWDWXWHRIOLPLWDWLRQVIRU DOORZ $%; WR VHDUFK HPSOR\HHV ZLWKRXW UHDVRQDEOH PDMRUGLVSXWHVLVQRORQJHULQLVVXH VXVSLFLRQRQDUDQGRPEDVLV)DLOXUHWRFRPSO\ZLWKDVHDUFK UHTXHVWFRXOGUHVXOWLQGLVFKDUJH7KHQHZSROLF\ZRXOGEH %%UHDFKRIWKH&ROOHFWLYH%DUJDLQLQJ$JUHHPHQW GLVWULEXWHGDQGSODFHGRQDOORIWKH$%;EXOOHWLQERDUGV 1H[WZHUHYLHZWKHGLVWULFWFRXUWj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jVJUDQWRI VHDUFK SROLF\  $%; UHIXVHG  7KH 8QLRQ VXEVHTXHQWO\ VXPPDU\MXGJPHQWGHQRYR6HH+DUWVHOY.H\V)G VXEPLWWHG WKH PDWWHU WR DQ 5/$FUHDWHG DGMXVWPHQW ERDUG  WK &LU  ,QUHYLHZLQJWKHGLVWULFWFRXUWjV mWKH%RDUGl IRUDUELWUDWLRQ7KH8QLRQFKDUJHGWKDW$%;jV GHFLVLRQ KRZHYHU ZH PXVW EHDU LQ PLQG WKH YHU\ QDUURZ XQLODWHUDO LPSOHPHQWDWLRQ RI WKH UDQGRP VHDUFK SROLF\ VWDQGDUG RI UHYLHZ WKDW IHGHUDO FRXUWV DUH WR HPSOR\ ZKHQ EUHDFKHGWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQWDQGYLRODWHGWKH UHYLHZLQJDUELWUDWLRQDZDUGV$UELWUDWLRQLVDKLJKO\IDYRUHG 5/$:LWKUHVSHFWWRWKHEUHDFKRIFRQWUDFWDUJXPHQWWKH PHDQV RI GLVSXWH UHVROXWLRQ DQG FRXUWV VKRXOG H[HUFLVH %RDUGPDGHWKHIROORZLQJILQGLQJVRIIDFW WKDW$%;j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jVULJKWWRXQLODWHUDOO\LPSOHPHQWWKHSROLF\ Y%XHOO86  2YHUWXUQLQJWKHDZDUGRI 7KH %RDUG WKHQ FLWHG SULRU DUELWUDWLRQ GHFLVLRQV IRU WKH DERDUGRIDGMXVWPHQWLVOLPLWHGWRWKUHHVSHFLILFJURXQGV SURSRVLWLRQ WKDW $%; UHWDLQHG WKH ULJKW WR PDQDJH DQG IDLOXUHRIWKHERDUGWRFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKH RSHUDWHLWVEXVLQHVVXQOHVVWKHSDUWLHVKDGFXUWDLOHGWKDWULJKW 5/$ IDLOXUHRIWKHERDUGWRFRQIRUPRUFRQILQHLWVHOIWR LQ WKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW HYHQ WKRXJK WKH PDWWHUVZLWKLQWKHVFRSHRILWVMXULVGLFWLRQDQG IUDXGRU DJUHHPHQWGLGQRWFRQWDLQDQH[SUHVVmPDQDJHPHQWjVULJKWVl FRUUXSWLRQ86&†)LUVW T 8QLRQ3DFLILF55&R SURYLVLRQ%DVHGRQWKHVHREVHUYDWLRQVWKH%RDUGFRQFOXGHG Y6KHHKDQ86   WKDW $%; GLG QRW YLRODWH WKH SURYLVLRQV RI WKH FROOHFWLYH EDUJDLQLQJDJUHHPHQW:LWKUHVSHFWWRWKH8QLRQjVFRQWHQWLRQ 7KHGLVWULFWFRXUWKHUHRYHUWXUQHGWKH%RDUGjVDZDUGRQWKH WKDW$%;YLRODWHGWKH5/$WKH%RDUGFRQFOXGHGWKDWLWGLG JURXQGWKDWWKH%RDUGIDLOHGWRFRQILQHLWVHOIWRPDWWHUVZLWKLQ  $LUOLQH3URIHVVLRQDOV 1RV 1RV $LUOLQH3URIHVVLRQDOV  $VVjQY$%;$LU $VVjQY$%;$LU  LWLPSRVHGDWLPHOLPLWRQUHFRYHU\IURPGUXJDGGLFWLRQ QRWKDYHMXULVGLFWLRQWRGHFLGHWKHLVVXH)LQDOO\WKH%RDUG XQOLNH WKH SULRU PHGLFDO SROLF\ ZKLFK KDG SUHYHQWHG WKH IRXQG WKDW $%;jV LPSOHPHQWDWLRQ RI WKH XQLODWHUDO VHDUFK HPSOR\HUIURPWHUPLQDWLQJDQHPSOR\HHXQWLOWKHHPSOR\HHjV SROLF\ZDVQHLWKHUXQUHDVRQDEOHQRUXQHQIRUFHDEOH+HQFH PHGLFDO FRQGLWLRQ LPSURYHG ZLWKRXW D WLPH OLPLW RQ WKH WKH%RDUGGHQLHGWKH8QLRQjVJULHYDQFHLQLWVHQWLUHW\ UHFRYHU\SHULRGDQG LWZRXOGIRUWKHILUVWWLPHSHUPLWWKH HPSOR\HU WR UHJXODWH WKH SULYDWH RIIGXW\ FRQGXFW RI WKH 7KH8QLRQEURXJKWVXLWLQWKH6RXWKHUQ'LVWULFWRI2KLR HPSOR\HHV6HHLGDW7KH&RXUWIRXQGWKDWDOORIWKHVH FKDOOHQJLQJWKH%RDUGjVGHFLVLRQZLWKUHVSHFWWRWKHEUHDFKRI DUJXPHQWVmFRQFHLYDEO\FRXOGFDUU\WKHGD\LQDUELWUDWLRQl FRQWUDFWDQGDGGLQJDIHGHUDOFODLPXQGHU†RIWKH5/$ EXWWKDWWKH\ZHUHLQVXIILFLHQWWRVKRZWKDWWKHHPSOR\HUjV 7KH GLVWULFW FRXUW GLVPLVVHG WKH 8QLRQjV 5/$ FODLP EXW FRQWUDFWXDODUJXPHQWVZHUHmIULYRORXVRULQVXEVWDQWLDOl,G JUDQWHGVXPPDU\MXGJPHQWLQIDYRURIWKH8QLRQZLWKUHVSHFW DW   %HFDXVH WKH HVWDEOLVKPHQW DQG HQIRUFHPHQW RI WRWKHEUHDFKRIFRQWUDFWFODLP%RWKSDUWLHVDSSHDO PHGLFDOVWDQGDUGVKDGEHHQOHIWLQWKHKDQGVRIWKHHPSOR\HU LQWKHSDVWWKHHPSOR\HUjVDUJXPHQWWKDWLWKDGDULJKWXQGHU ,, WKH DJUHHPHQW WR LPSOHPHQW UHJXODU GUXJ WHVWLQJ ZDV mDUJXDEO\MXVWLILHGl7KXVWKHGLVSXWHZDVDPLQRURQHDQG $9LRODWLRQRIWKH5/$ WKH GLVWULFW FRXUW SURSHUO\ GLVPLVVHG WKH FDVH IRU ODFN RI VXEMHFWPDWWHUMXULVGLFWLRQ :HILUVWDGGUHVVWKHGLVWULFWFRXUWjVGLVPLVVDORIWKH8QLRQjV 5/$FODLP:HUHYLHZGHQRYRWKHGLVWULFWFRXUWjVGLVPLVVDO ,Q WKLV FDVH ZH FRQFOXGH WKDW WKH GLVSXWH LQYROYLQJ WKH RI WKDW FODLP SXUVXDQW WR )HGHUDO 5XOH RI &LYLO 3URFHGXUH UDQGRPVHDUFKLQJRI8QLRQPHPEHUVLVDPLQRURQH$VLQ  E  $PLQLY2EHUOLQ&ROOHJH)G WK &RQUDLOUDQGRPVHDUFKHVDUHQRWVSHFLILFDOO\DGGUHVVHGE\ &LU ,QGRLQJVRm>Z@HYLHZWKHFRPSODLQWLQWKHOLJKW WKHFROOHFWLYHEDUJDLQLQJDJUHHPHQW1RQHWKHOHVVWKHFRXUW PRVW IDYRUDEOH WR WKH SODLQWLII WUHDW DOO ZHOOSOHDGHG ILQGV LW DW OHDVW DUJXDEOH WKDW WKH LPSOLHG WHUPV RI WKH DOOHJDWLRQV WKHUHLQ DV WUXH DQG ZLOO GLVPLVV WKH SODLQWLIIjV DJUHHPHQW SHUPLW $%; WR XQLODWHUDOO\ LPSOHPHQW UDQGRP FODLPVRQO\LILWLVZLWKRXWGRXEWWKDWWKHSODLQWLIIµFDQSURYH VHDUFKHV$VGLVFXVVHGPRUHIXOO\EHORZPDQDJHPHQWUHWDLQV QRVHWRIIDFWVLQVXSSRUWRIWKHFODLPVWKDWZRXOGHQWLWOHKLP GLVFUHWLRQ ZLWK UHVSHFW WR WKH KLULQJ ILULQJ SURPRWLQJ WRUHOLHIjl,GDW TXRWLQJ*UHJRU\Y6KHOE\&RXQW\ VXSHUYLVLQJ SODQQLQJ DQG RWKHU PDQDJHPHQW IXQFWLRQV 7HQQ)G WK&LU  H[FHSWDVOLPLWHGE\WKHFROOHFWLYHEDUJDLQLQJDJUHHPHQWDQG SXEOLF ODZ  $SSDODFKLDQ 5HJLRQDO +HDOWKFDUH Y 8QLWHG 7KHGLVWULFWFRXUWGHWHUPLQHGWKDWWKH8QLRQjV5/$FODLP 6WHHOZRUNHUV RI $PHULFD  )G   WK &LU ZDV WLPHEDUUHG ERUURZLQJ WKH VL[PRQWK VWDWXWH RI  0RUHRYHU$%;KDGLQWKHSDVWH[HUFLVHGXQLODWHUDO OLPLWDWLRQVIURP† E RIWKH1DWLRQDO/DERU5HODWLRQV$FW FRQWURO RYHU LWV HPSOR\HH VHDUFKLQJ SROLF\  7KXV DV LQ 7KH8QLRQFRQWHQGVWKDWWKHGLVWULFWFRXUWjVDSSOLFDWLRQRIWKH &RQUDLO $%;jV SRVLWLRQ LV mDUJXDEO\ MXVWLILHGl E\ WKH 1/5$OLPLWDWLRQVSHULRGZDVLQHUURU:HQHHGQRWDGGUHVV LPSOLHGWHUPVRIWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQW$%;jV WKDWTXHVWLRQKRZHYHUEHFDXVHZHILQGWKDWWKH8QLRQjV5/$ FRQWHQWLRQWKDWLWUHWDLQHGGLVFUHWLRQXQGHUWKHDJUHHPHQWWR FODLPVKRXOGKDYHEHHQGLVPLVVHGIRUODFNRIVXEMHFWPDWWHU XQLODWHUDOO\ LPSRVH WKH UDQGRP VHDUFK SROLF\ LV QHLWKHU MXULVGLFWLRQ mIULYRORXVlQRUmLQVXEVWDQWLDOl7KHGLVSXWHLVWKHUHIRUHD 8QGHU WKH 5/$ GLVSXWHV DUH VHSDUDWHG LQWR WZR GLVWLQFW PLQRU RQH WKDW ZDV SURSHUO\ EHIRUH WKH DGMXVWPHQW ERDUG FDWHJRULHVPDMRUGLVSXWHVDQGPLQRUGLVSXWHV6HH(OJLQs XQGHU  86& †   %HFDXVH WKH ERDUG KDV H[FOXVLYH (5\&RY%XUOH\86   DGRSWLQJ  $LUOLQH3URIHVVLRQDOV 1RV 1RV $LUOLQH3URIHVVLRQDOV  $VVjQY$%;$LU $VVjQY$%;$LU WKHPDMRUPLQRUGLVSXWHWHUPLQRORJ\DVVKRUWKDQGWRGHVFULEH ULJKWVLWLVDPDMRUGLVSXWH7KH&RQUDLO&RXUWSKUDVHGWKH WKHVWDWXWRU\FDWHJRULHV &RPSDUH86&†6HYHQWK GLVWLQFWLRQDVIROORZV DQG† PDMRUGLVSXWHV ZLWK86&†6L[WK† )LUVWDQG† PLQRUGLVSXWHV 7KHGLVWLQFWLRQEHWZHHQ >,@I DQ HPSOR\HU DVVHUWV D FODLP WKDW WKH SDUWLHVj WKHVHWZRFDWHJRULHVKDVLPSRUWDQWSURFHGXUDOLPSOLFDWLRQV DJUHHPHQWJLYHVWKHHPSOR\HUWKHGLVFUHWLRQWRPDNHD )RUPDMRUGLVSXWHVWKH5/$PDQGDWHVDOHQJWK\SURFHVVRI SDUWLFXODU FKDQJH LQ ZRUNLQJ FRQGLWLRQV ZLWKRXW SULRU QHJRWLDWLRQDQGPHGLDWLRQEHIRUHHLWKHUSDUW\PD\UHVRUWWR QHJRWLDWLRQDQGLIWKDWFODLPLVDUJXDEO\MXVWLILHGE\WKH VHOIKHOS  6HH &RQVROLGDWHG 5DLO &RUS Y 5DLOZD\ /DERU WHUPVRIWKHSDUWLHVjDJUHHPHQW LHWKHFODLPLVQHLWKHU ([HFXWLYHVj$VVjQ86   KHUHLQDIWHU REYLRXVO\ LQVXEVWDQWLDO RU IULYRORXV QRU PDGH LQ EDG m&RQUDLOl 8QWLOWKHQHJRWLDWLRQDQGPHGLDWLRQSURFHVVLV IDLWK WKHHPSOR\HUPD\PDNHWKHFKDQJHDQGWKHFRXUWV H[KDXVWHGWKHSDUWLHVPXVWmPDLQWDLQWKHVWDWXVTXRDQGWKH PXVWGHIHUWRWKHDUELWUDOMXULVGLFWLRQRIWKH%RDUG HPSOR\HUPD\QRWLPSOHPHQWWKHFRQWHVWHGFKDQJHLQUDWHVRI SD\UXOHVRUZRUNLQJFRQGLWLRQVl,G)HGHUDOGLVWULFWFRXUWV ,GDW7KHGLVWLQFWLRQEHWZHHQPDMRUDQGPLQRUGLVSXWHV KDYH VXEMHFW PDWWHU MXULVGLFWLRQ WR HQIRUFH WKH VWDWXV TXR EHFRPHV PRUH FRPSOLFDWHG KRZHYHU ZKHQ FRQVLGHULQJ SHQGLQJFRPSOHWLRQRIWKHVWDWXWRULO\SUHVFULEHGSURFHGXUHV LPSOLHGWHUPVRIWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQW6XFK ,G DW   $ PLQRU GLVSXWH LQ FRQWUDVW LV VXEMHFW WR LPSOLHGWHUPVDUHSDUWRIWKHFROOHFWLYHEDUJDLQLQJDJUHHPHQW FRPSXOVRU\ DQG ELQGLQJ DUELWUDWLRQ EHIRUH DQ DGMXVWPHQW DQGPLJKWDUJXDEO\MXVWLI\WKHFRPSDQ\jVFKDOOHQJHGDFWLRQV ERDUG6HH86&†&RQUDLO86DW7KH OHDGLQJ WR WKH FRQFOXVLRQ WKDW WKH GLVSXWH LV D PLQRU RQH DGMXVWPHQWERDUGH[HUFLVHVH[FOXVLYHMXULVGLFWLRQRYHUPLQRU %HFDXVH FROOHFWLYH EDUJDLQLQJ DJUHHPHQWV DUH PHDQW WR EH GLVSXWHVsXGLFLDOUHYLHZRIWKHDGMXVWPHQWERDUGjVGHFLVLRQ mJHQHUDOL]HGFRGH>V@WRJRYHUQDP\ULDGRIFDVHVZKLFKWKH LV OLPLWHG DQG WKHUH LV QR UHTXLUHPHQW WKDW WKH SDUWLHV GUDIWVPHQ FDQQRW ZKROO\ DQWLFLSDWHl WKH SDUWLHVj SULRU PDLQWDLQ WKH VWDWXV TXR SHQGLQJ ERDUG UHVROXWLRQ RI WKH mSUDFWLFHXVDJHDQGFXVWRPl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mORRNVWRZKHWKHUDFODLPKDV XQGLVSXWHG HYLGHQFH RI WKH SULRU SUDFWLFHV RI WKH SDUWLHV EHHQ PDGH WKDW WKH WHUPV RI DQ H[LVWLQJ DJUHHPHQW HLWKHU GHWHUPLQHG WKDW WKH XQLODWHUDO LPSRVLWLRQ RI UHJXODU GUXJ HVWDEOLVKRUUHIXWHWKHSUHVHQFHRIDULJKWWRWDNHWKHGLVSXWHG VFUHHQLQJDVSDUWRIWKHUHTXLUHGSK\VLFDOH[DPLQDWLRQVZDV DFWLRQ7KHGLVWLQJXLVKLQJIHDWXUHRIVXFKDFDVHLVWKDWWKH mDUJXDEO\ MXVWLILHGl E\ WKH LPSOLHG WHUPV RI WKH FROOHFWLYH GLVSXWH PD\ EH FRQFOXVLYHO\ UHVROYHG E\ LQWHUSUHWLQJ WKH EDUJDLQLQJDJUHHPHQW6HHLGDW7KH&RXUWQRWHG H[LVWLQJDJUHHPHQWl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
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