Elawyers Elawyers
Ohio| Change

In Re: Untd Steel v., 00-3611 (2002)

Court: Court of Appeals for the Sixth Circuit Number: 00-3611 Visitors: 3
Filed: Feb. 07, 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 $50&2 ,1& ; 3ODLQWLII$SSHOOHH    1RV Y   !  81,7(' 67((/:25.(56 2)  $0(5,&$ $)/&,2 /2&$/   81,7(' 67((/:25.(56  2) $0(5,&$ $)/&,2  %,// WKH 6LQFHWKHORFNRXWEHJDQWKH3ODLQWLIIKDVFRQWLQXHGWR GLVWULFW MXGJH@ FRXQWHUHG E\ VD\LQJ
More
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sDQXDU\ UHDVVLJQHGWRDGLIIHUHQWMXGJHWRPDLQWDLQWKHDSSHDUDQFHRI  MXVWLFH)LQDOO\WKH8QLRQVDUJXHWKDWUHDVVLJQPHQWZRXOG QRWHQWDLOZDVWHRUGXSOLFDWLRQRXWRISURSRUWLRQZLWKZKDW 2Q6HSWHPEHUWKH3ODLQWLIIILOHG>DODZVXLWLQ ZRXOG EH JDLQHG E\ SUHVHUYLQJ WKH DSSHDUDQFH RI IDLUQHVV VWDWH FRXUW VHHNLQJ LQMXQFWLYH UHOLHI DJDLQVW WKH 8QLRQ EHFDXVHQRHYLGHQFHZDVWDNHQQRILQGLQJVRIIDFWZHUHPDGH 'HIHQGDQWV@,WVRXJKWWROLPLWWKHSLFNHWVDQGWRHQMRLQ E\WKHGLVWULFWMXGJHDQGQRWULDOGDWHKDGEHHQVHW YLROHQFHsXGJHsDPHV'+HQVRQLVVXHG>DWHPSRUDU\ UHVWUDLQLQJRUGHU@WKHVDPHGD\ ,QRXUYLHZWKLVVLQJOHQHZVSDSHUDUWLFOHDQGRQHSDUW\jV DOOHJDWLRQ WKDW D MXGJH FRQGXFWHG RIIWKHUHFRUG H[ SDUWH 7KH3ODLQWLIIDOOHJHVKRZHYHUWKDW/DERU'D\ZHHNHQG PHHWLQJVDUHQRWVXIILFLHQWWRMXVWLI\WKHH[WUDRUGLQDU\UHOLHI >RQ 6HSWHPEHU  DQG  @ 8QLRQ DQG 0DQVILHOG UHTXHVWHG:HWKHUHIRUHGHFOLQHWRUHPDQGWKLVFDVHWRD RIILFLDOVLQFOXGLQJ0D\RU5HLGPHWZLWKsXGJH+HQVRQ GLIIHUHQWGLVWULFWFRXUWMXGJHXQGHU86&† DERXW WKH ODERU GLVSXWH ZLWKRXW WKH SUHVHQFH RI DQ\ UHSUHVHQWDWLYHV RI WKH 3ODLQWLII  7KH 3ODLQWLII DOOHJHV ,9&21&/86,21 IXUWKHUWKDWWKH'HIHQGDQWVDVVHUWHGLPSURSHULQIOXHQFH RYHUsXGJH+HQVRQDWWKDWPHHWLQJ7KH'HIHQGDQWVKDYH %HFDXVHWKHFRQVHQWGHFUHHRSHUDWHVDVDQLQMXQFWLRQDQG DGPLWWHGWRWKHPHHWLQJEXWGHQ\DQ\LPSURSULHW\ EHFDXVHWKH8QLRQVZLOOEHVHULRXVO\KDUPHGLIWKH\FDQQRW FKDOOHQJHWKHFRQVHQWGHFUHHDWWKLVWLPHZHKDYHMXULVGLFWLRQ 2Q/DERU'D\6HSWHPEHUXSRQPRWLRQRIWKH 8QLRQ sXGJH +HQVRQ LVVXHG D 752 HQMRLQLQJ WKH 3ODLQWLIIIURPXVLQJUHSODFHPHQWZRUNHUV>DQGJUDQWLQJ  $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG  6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO WKH SUHVLGHQW RI /RFDO  RU KLV GHVLJQHH DQG WKH 8QLRQVjUHPDLQLQJFKDOOHQJHVWRWKHYDOLGLW\RIWKHFRQVHQW 0DQVILHOGSROLFHWKHULJKWWRLQVSHFWYHKLFOHVHQWHULQJRU GHFUHH OHDYLQJWKH$UPFRIDFLOLW\WRYHULI\FRPSOLDQFHZLWKWKH 752@7KH3ODLQWLIIREMHFWHGRQWKHQH[WGD\DVVHUWLQJ (0DQGDPXV3HWLWLRQDQG2WKHU5HOLHI LWV DEVROXWH ULJKW WR XVH UHSODFHPHQW ZRUNHUV XQGHU IHGHUDO ODZ  ,W FODLPHG LW QHHGHG UHSODFHPHQWV WR 7KH8QLRQVKDYHDOVRILOHGDSHWLWLRQIRUZULWRIPDQGDPXV FRQWLQXHRSHUDWLQJLWVSODQWsXGJH+HQVRQUHMHFWHGWKH GLUHFWLQJWKHGLVWULFWFRXUWWRYDFDWHWKHDSSURYDODQGHQWU\RI 3ODLQWLIIjVREMHFWLRQV>EXWDPHQGHGWKH752WRSHUPLW WKH FRQVHQW GHFUHH 6HH $OO :ULWV $FW  86& †  YHKLFOHVHDUFKHVRQO\E\WKH0DQVILHOGSROLFHDQGQRWE\ $UPFRWKH&LW\DQGWKHGLVWULFWFRXUWKDYHHDFKUHVSRQGHG 8QLRQPHPEHUV@%HFDXVHRIWKH752WKH3ODLQWLIIjV SODQWZDVVKXWGRZQ>VLF@IURP6HSWHPEHU2Q m0DQGDPXVLVDQH[WUDRUGLQDU\UHPHG\DQGLWZLOORQO\EH 6HSWHPEHUWKH3ODLQWLIIVXEPLWWHGDQDGGLWLRQDO JUDQWHGZKHQWKHSHWLWLRQHUVKRZVWKDWLWVULJKWWRLVVXDQFHRI EULHI DQG sXGJH +HQVRQ UHVFLQGHG WKH 752 EDUULQJ WKH ZULW LV µFOHDU DQG LQGLVSXWDEOHj  µ>2@QO\ H[FHSWLRQDO UHSODFHPHQW ZRUNHUV  7KH RULJLQDO 752 SURKLELWLQJ FLUFXPVWDQFHVDPRXQWLQJWRDMXGLFLDOXVXUSDWLRQRISRZHU YLROHQFHDQGOLPLWLQJWKHSLFNHWVUHPDLQHGLQIRUFH ZLOOMXVWLI\WKHLQYRFDWLRQRIWKLVH[WUDRUGLQDU\UHPHG\jl,Q UH%HQGHFWLQ3URGXFWV/LDELOLW\/LWLJDWLRQ)G 2Q6HSWHPEHUWKH3ODLQWLIIDWWHPSWHGWREULQJ WK&LU  FLWDWLRQVDQGIRRWQRWHVRPLWWHG :HILQG UHSODFHPHQW ZRUNHUV LQWR WKH SODQW LQ D FRQYR\ RI WKDWWKHUHLVQREDVLVRQZKLFKWRJUDQWWKHZULW YHKLFOHV$WWKHSODQWHQWUDQFHWKHFRQYR\ZDVDWWDFNHG E\DQDQJU\PREZKLFKWKUHZREMHFWVVPDVKHGZLQGRZV 7KH8QLRQVDOVRDVNXVWRH[HUFLVHRXUDXWKRULW\XQGHU RI WKH YHKLFOHV DQG EHDW UHSODFHPHQW ZRUNHUV DQG 86&†WRUHPDQGWKHFDVHWRDGLIIHUHQWGLVWULFWFRXUW VHFXULW\JXDUGVVHYHUHO\LQMXULQJVRPH'HIHQGDQWsRKQ MXGJHm+RZHYHUWKLVLVDQH[WUDRUGLQDU\SRZHUDQGVKRXOG )XOOHUD0DQVILHOGSROLFHRIILFHUZDVDWWKHHQWUDQFHWR UDUHO\EHLQYRNHG6XFKUHDVVLJQPHQWVVKRXOGEHPDGH WKHSODQW7KH3ODLQWLIIDOOHJHVWKDW2IILFHU)XOOHUZLWK LQIUHTXHQWO\ DQG ZLWK WKH JUHDWHVW UHOXFWDQFHl  86 Y WKHDSSURYDORI&LW\RIILFLDOVDVVLVWHGWKH8QLRQWREORFN :LQWHUV)G WK&LU  TXRWDWLRQDQG WKHHQWUDQFHDQGSUHYHQWWKHUHSODFHPHQWZRUNHUVIURP FLWDWLRQVRPLWWHG  HQWHULQJ$OVRKHGLGQRWKLQJDV8QLRQPHPEHUVDQG WKHLUVXSSRUWHUVDWWDFNHGWKHFRQYR\ZKHQLWFRXOGQRW $EVHQWSURRIRISHUVRQDOELDVUHTXLULQJUHFXVDWLRQ7LWOH HQWHUWKHSODQW 86&†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mPDNHDQGHQIRUFH %3URFHGXUDO+LVWRU\ VXFK RWKHU RUGHUV UHVSHFWLQJ FRQGXFW E\ SULYDWH SHUVRQV UHODWHGWRWKHODERUGLVSXWHDVWKH&RXUWGHHPVDSSURSULDWHWR >,QsXO\@EHIRUHWKH&%$H[SLUHGWKH3ODLQWLIIILOHG HQVXUHWKHPDLQWHQDQFHRISXEOLFRUGHUl6LPLODUO\WKHVWDWH LWVRULJLQDO&RPSODLQWDJDLQVWWKH,QWHUQDWLRQDO8QLRQ FRXUW UHWDLQV MXULVGLFWLRQ XQGHU LWV LQMXQFWLRQ WR PDLQWDLQ /RFDO  DQG VHYHUDO 8QLRQ RIILFLDOV WKH m8QLRQ SXEOLFRUGHURYHUWKHODERUGLVSXWH$VWKH8QLRQVSRLQWRXW 'HIHQGDQWVl >2QsXO\WKHGHIHQGDQWVUHPRYHGWKH EHFDXVHRIWKLVGXSOLFDWLRQDSHUVRQPD\EHVDQFWLRQHGE\ FDVH WR WKH GLVWULFW FRXUW@  7KH 3ODLQWLII HVVHQWLDOO\ ERWKWKHVWDWHDQGIHGHUDOFRXUWVIRUH[DFWO\WKHVDPHFRQGXFW DOOHJHVWKDWWKH8QLRQ'HIHQGDQWVYLRODWHGWKH&%$E\ HQJDJLQJLQDFRQFHUWHGUHIXVDOWRZRUNRYHUWLPH7KH &OHDUO\WKHFRQVHQWGHFUHHLQWHUIHUHVZLWKDSHQGLQJVWDWH 8QLRQ 'HIHQGDQWV GHQ\ WKH FKDUJHV DQG DVVHUW D FRXUWSURFHHGLQJDQGWKHILUVWSURQJRIWKH WKHGLVWULFW $FFRUGLQJO\WKHVHFRQGSURQJRIWKH LWV@FODLPVl)HGHUDO([SUHVV&RUSY FRXQWHUFODLPEDVHGRQWKHSUHVHQFHRIWKHVHFXULW\IRUFH 7HQQHVVHH3XEOLF6HUY&RPPjQ)G WK&LU   FLWLQJ3HQQ]RLO &R Y 7H[DFR ,QF  86   &RXQWV ,,,9 ZKLFK DUH WKH VXEMHFW RI WKH &RQVHQW  $UPFRKDVQRWPHWWKLVEXUGHQ 'HFUHH DUH EDVHG RQ HYHQWV RFFXUULQJ DIWHU WKH &%$ H[SLUHG6SHFLILFDOO\&RXQWV,,,9DULVHXQGHU86& $EVWHQWLRQ E\ WKH GLVWULFW FRXUW ZRXOG KDYH mDYRLGHG †  DQG HVVHQWLDOO\ DOOHJH WKDW WKH 0DQVILHOG GXSOLFDWLRQRIOHJDOSURFHHGLQJV>DQGVDQFWLRQV@GHIHUUHGWR 'HIHQGDQWV DQG WKH 8QLRQ 'HIHQGDQWV FRQVSLUHG WR WKH VWDWHjV VRYHUHLJQW\ RYHU LWV ODZ DQG UHVSHFWHG WKH VKXWGRZQ>VLF@WKHSODQWWKHUHE\DEULGJLQJWKH3ODLQWLIIjV SULQFLSOHVRIFRPLW\LQKHUHQWWRRXUIHGHUDOLVPl&DUUROO FRQVWLWXWLRQDOULJKWVXQGHUFRORURIVWDWHODZ&RXQW9 )GDW$FFRUGLQJO\WKHGLVWULFWFRXUWj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†FODLPLQWKHIHGHUDOFRXUWDFWLRQDQGWKHFRQVHQWGHFUHH 'XULQJ WKH VHWWOHPHQW QHJRWLDWLRQV WKH 3ODLQWLII DUHLQGHSHQGHQWRIWKHFODLPVLQWKHSHQGLQJVWDWHFRXUWFDVH H[SUHVVHG FRQFHUQV DV ILUVW UDLVHG LQ WKH $PHQGHG &RPSODLQW WKDW 0DQVILHOG ZDV QRW SHUIRUPLQJ $OWKRXJKWKHFRQVHQWGHFUHHGRHVQRWVSHFLILFDOO\HQMRLQWKH DGHTXDWHO\ LQ SURWHFWLQJ WKH 3ODLQWLIIjV FRQVWLWXWLRQDO VWDWH FRXUW SURFHHGLQJ LW DGGUHVVHV VXEVWDQWLDOO\ WKH VDPH SURSHUW\ULJKWWRRSHUDWHLWVSODQW7KH&LW\FRQWLQXHGWR LVVXHVWKDWDUHDGGUHVVHGLQWKHVWDWHFRXUWLQMXQFWLRQ)XUWKHU DVVHUWWKHUHZDVQRFRQVSLUDF\RULQWHQWWRGHSULYHWKH FRQWUDU\WR$UPFRDQGWKH&LW\jVDUJXPHQWWKDWWKH† 3ODLQWLIIRILWVFRQVWLWXWLRQDOULJKWVEXWUHSUHVHQWHGWKDW FODLPLQWKHIHGHUDOODZVXLWLVLQGHSHQGHQWRIWKHVWDWHDFWLRQ LWVLPSO\GLGQRWKDYHVXIILFLHQWUHVRXUFHVWRPDLQWDLQ WKHUHOLHIUHTXHVWHGE\$UPFRLVGLUHFWO\FRYHUHGE\WKHVWDWH RUGHU$VSDUWRIWKHDJUHHPHQWWKHUHIRUHWKHSDUWLHV FRXUWLQMXQFWLRQ$UPFRjVIHGHUDOFRPSODLQWVWDWHVm8QOHVV UHTXHVWHGWKDWWKH>GLVWULFWFRXUW@LVVXHD&RQVHQW'HFUHH LPPHGLDWHO\ DQG SHUPDQHQWO\ HQMRLQHG 'HIHQGDQWV ZLOO WRGHILQHWKH&LW\jVREOLJDWLRQVWRSUHYHQWYLROHQFHDQG FRQWLQXHWRHQJDJHLQVXFKLQWHQWLRQDOSXUSRVHIXOUHFNOHVV SURYLGH WKDW WKH 86 0DUVKDOV ZRXOG PRQLWRU PDOLFLRXVDQGZDQWRQFRQGXFWLQFDOORXVGLVUHJDUGRIRUZLWK FRPSOLDQFHZLWKWKH'HFUHHDQGZKHQDQGLIQHFHVVDU\ GHOLEHUDWHLQGLIIHUHQFHWR$UPFRjVULJKWVl7KHVWDWHFRXUW VXSSOHPHQW WKH &LW\jV UHVRXUFHV WR PDLQWDLQ ODZ DQG LQMXQFWLRQHQMRLQVWKH8QLRQVIURPFRPPLWWLQJYLROHQWDFWV RUGHU OLPLWV WKH SLFNHWLQJ DQG UHTXLUHV WKH 0DQVILHOG SROLFH WR HQIRUFH WKH SLFNHWLQJ UHVWULFWLRQV SURWHFW SHUVRQV DQG 2Q 0DUFK   WKH 3ODLQWLII DQG WKH 0DQVILHOG SURSHUW\ DQG JHQHUDOO\ NHHS WKH SHDFH  7KH VWDWH FRXUW 'HIHQGDQWV SURSRVHG D &RQVHQW 'HFUHH GHVLJQHG WR LQMXQFWLRQDOVRSURKLELWVWKUHDWVDQGYLROHQFHDQGHVWDEOLVKHV HQVXUH DFFHVV WR DQG IURP WKH 3ODLQWLIIjV 0DQVILHOG DIRRWQRZDON]RQHLQIURQWRIWKHHQWUDQFHVWR$UPFRj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jVSXUSRVHEHFDXVHLWUHVWULFWVWKH8QLRQVjPHPEHUV HYLGHQWLDU\KHDULQJZKLFKWKH>GLVWULFWFRXUW@GHQLHG FRQGXFWLQFRQQHFWLRQZLWKWKHODERUGLVSXWHDWWKH$UPFR 0DQVILHOGSODQW 2Q0DUFKWKH3ODLQWLIIUHVSRQGHGWRWKH8QLRQ 'HIHQGDQWVjREMHFWLRQVWRZKLFKWKH8QLRQ'HIHQGDQWV %HFDXVH WKH UHVWULFWLRQV RI WKH FRQVHQW GHFUHH VWURQJO\ UHSOLHG RQ 0DUFK   2Q 0D\   WKH >GLVWULFW LPSDFWWKH8QLRQVj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j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jV@0DQVILHOGIDFLOLWLHV1RRQH 7KHGLVWULFWFRXUWUHO\LQJRQ5HXWHUY6NLSSHU)G PD\ ZDON LQ VXFK QRZDON ]RQHV ZKLOH DQ\ SHUVRQ RU WK&LU IRXQGWKDWHYHQLIWKHFDVHLQYROYHGDODERU YHKLFOH LV DWWHPSWLQJ WR HQWHU RU OHDYH >$UPFRjV@ GLVSXWHWKH$FWGLGQRWDSSO\WRWKH†FODLPUHVROYHGE\ IDFLOLWLHV  1R SHUVRQ RWKHU WKDQ D ODZ HQIRUFHPHQW WKHFRQVHQWGHFUHH,Q5HXWHUDFRXQW\HPSOR\HHFODLPHG RIILFHUPD\SODFHDQ\REMHFWLQDQRZDON]RQHDWDQ\ WKDW KHU FRQVWLWXWLRQDO ULJKWV ZHUH YLRODWHG ZKHQ VKH ZDV WLPH  1R SHUVRQ VKDOO LQ DQ\ RWKHU ZD\ REVWUXFW RU WHUPLQDWHG IRU YLRODWLQJ D ZRUN UXOH SURKLELWLQJ FRXQW\ LQWHUIHUH ZLWK WKH XVH RI DQ\ URDGZD\ RU HQWUDQFHZD\ FRUUHFWLRQRIILFHUVIURPFRKDELWLQJZLWKH[IHORQVRQSDUROH OHDGLQJWRRUDQ\HQWUDQFHWRDQ\RI>$UPFRjV@IDFLOLWLHV 7KH 5HXWHU FRXUW KHOG WKDW WKH $FW mGRHV QRW SUHFOXGH WKH DWDQ\WLPHVRDVWRLPSHGHWKHIORZRIWUDIILFRUDFFHVV GLVWULFW FRXUW IURP LVVXLQJ DQ LQMXQFWLRQ LQ D VHFWLRQ  WR RU IURP VXFK IDFLOLWLHV  7KH &LW\ VKDOO LVVXH D DFWLRQ HYHQ WKRXJK WKH DFWLRQ LQYROYHV D ODERU GLVSXWH VXPPRQVLQDFFRUGDQFHZLWKDSSOLFDEOHODZZKHQHYHU EHWZHHQDQHPSOR\HHDQGDPXQLFLSDOLW\l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†0DWWHU RI&URZH $VVRFV,QF)G WK&LU  :LWKLQ IRUW\HLJKW KRXUV DIWHU WKH LVVXDQFH RI WKLV   ,I D FRQVWLWXWLRQDO ULJKW LV YLRODWHG LQ D ODERU 2UGHUWKH&LW\3ROLFH'LYLVLRQVKDOOUHPRYHRUFDXVHWKH GLVSXWH EHWZHHQ D PXQLFLSDO JRYHUQPHQW DQG LWV UHPRYDORIDQ\HQFORVHGVWUXFWXUHEDUULFDGHRUVWDFNVRI HPSOR\HHWKHVHFWLRQFODLPZLOOLQYDULDEO\EHPDGH SDOOHWVRUEXLOGLQJPDWHULDOVXQODZIXOO\ORFDWHGRQSXEOLF E\ WKH HPSOR\HH $Q LQMXQFWLRQ LVVXHG DJDLQVW WKH SURSHUW\RUULJKWRIZD\DGMDFHQWWR>$UPFRjV@0DQVILHOG PXQLFLSDOLW\ LQ VXFK FLUFXPVWDQFHV GRHV QRW LQWHUIHUH IDFLOLWLHV1RSHUVRQVKDOOHUHFWRUPDLQWDLQDQ\HQFORVHG ZLWKWKHSROLF\DLPVRI1RUULV/D*XDUGLD VWUXFWXUH EDUULFDGH RU VWDFN RU SDOOHWV RU EXLOGLQJ PDWHULDOVRQSXEOLFSURSHUW\RUULJKWRIZD\DGMDFHQWWR ,GDW >$UPFRjV@0DQVILHOGIDFLOLWLHV   7KH &LW\ VKDOO PDLQWDLQ DQG HQIRUFH LWV m]HUR WROHUDQFH SROLF\l IRU FRPPLVVLRQV RI FULPHV LQ FRQQHFWLRQZLWKWKHODERUGLVSXWHLQYROYLQJ>$UPFRjV@ IURP LQMXQFWLRQV $HURQDXWLFDO ,QGXVWULDO GRHV QRW VXSSRUW $UPFRjV 0DQVILHOG RSHUDWLRQ ZKHUHE\ &LW\ SROLFH RIILFHUV ZLOO SRVLWLRQ WKDW WKH GLVWULFW FRXUW KDG MXULVGLFWLRQ WR HQWHU WKH FRQVHQW GHFUHH FULPLQDOO\FKDUJHSHUVRQVIRUYLRODWLRQVRIFULPLQDOODZV LQ WKH FLUFXPVWDQFHV RI WKH GLVSXWH EHWZHHQ $UPFR DQG WKH 8QLRQV  $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG  6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO :KLOHWKHGLVWULFWFRXUWFRQFOXGHGWKDWWKHFRQVHQWGHFUHH LQ DFFRUGDQFH ZLWK DSSOLFDEOH ORFDO VWDWH DQG IHGHUDO SHUWDLQHG RQO\ WR WKH VHWWOHPHQW RI $UPFRjV †  FODLP ODZV DJDLQVWWKH&LW\ZHFRQFOXGHWKDWWKHFODLPZRXOGQRWH[LVW EXW IRU WKH XQGHUO\LQJ VWULNH DQG WKH &LW\jV FODLPHG  FRQVSLUDF\ ZLWK WKH 8QLRQV WR KDPSHU $UPFRjV XVH RI UHSODFHPHQWZRUNHUVDVVXEVWLWXWHVIRUWKHVWULNLQJPHPEHUV   86 0DUVKDOV VKDOO EH SUHVHQW DW WKH >$UPFR@ RIWKH8QLRQV)XUWKHUZHQRWHWKDWWKHFRQVHQWGHFUHHSODFHV 0DQVILHOGIDFLOLW\DVQHHGHGWRPRQLWRUFRPSOLDQFHZLWK QXPHURXV UHVWULFWLRQV XSRQ WKH 8QLRQVj DFWLYLWLHV LQ WKH WKHWHUPVRIWKLV&RQVHQW'HFUHH FRQWH[WRIWKHODERUGLVSXWHDVZHKDYHQRWHGDERYH  7KH FRQVHQWGHFUHHVD\VWKDWLWLVELQGLQJQRWRQO\WKHFRQVHQWLQJ  SDUWLHV$UPFRDQGWKH&LW\EXWDOVRmDOOWKRVHSHUVRQVDQG HQWLWLHVZKRUHFHLYHQRWLFHRILWVWHUPVl0RUHRYHULWVWHUPV 7KH860DUVKDOVZKHQQHFHVVDU\VKDOOUHTXHVWWKH KDYHDJUHDWHULPSDFWRQWKHDFWLRQVRIWKH8QLRQVWKDQRQ &LW\WRLQYRNHPXWXDODLGDJUHHPHQWVIRUREWDLQLQJODZ HLWKHU$UPFRRUWKH&LW\$OWKRXJKWKH&LW\DJUHHVWRWDNH HQIRUFHPHQW DVVLVWDQFH IURP RWKHU ODZ HQIRUFHPHQW FHUWDLQODZHQIRUFHPHQWDFWLRQVoHQIRUFLQJDQRZDON]RQHDW DJHQFLHV DQG VXFK UHTXHVWV ZLOO QRW EH XQUHDVRQDEO\ WKHHQWUDQFHVWR$UPFRjVIDFLOLWLHVVHDUFKLQJSLFNHWVKDQWLHV GHQLHG UHPRYLQJ HQFORVHG VWUXFWXUHV RQ SXEOLF SURSHUW\ DQG  PDLQWDLQLQJD]HURWROHUDQFHDWWLWXGHWRZDUGVFRPPLVVLRQVRI FULPHVLQFRQQHFWLRQZLWKWKHODERUGLVSXWHoWKHVHDFWLRQVDUH &RQVHQW'HFUHH1R&9DW GLUHFWHGDWWKHFRQGXFWRIWKHPHPEHUVRIWKH8QLRQV ,QLWV0HPRUDQGXPRI2SLQLRQWKHGLVWULFWFRXUWH[SODLQHG WKDWmWKH&RQVHQW'HFUHHLVOLPLWHGWRQHFHVVDU\PHDVXUHVWR  $UPFR $HURQDXWLFDO ,QGXVWULDO 'LVWULFW /RGJH  RI WKH FLWHV SUHYHQWYLROHQFHDQGHQVXUHDFFHVVWRDQGIURPWKH3ODLQWLIIjV ,QWHUQDWLRQDO $VVRFLDWLRQ RI 0DFKLQLVWV DQG $HURVSDFH :RUNHUV 0DQVILHOGIDFLOLWLHVl $)/&,2 Y 8QLWHG 7HFKQRORJLHV &RUS 3UDWW :KLWQH\  )G   G &LU   LQ VXSSRUW RI LWV DUJXPHQW WKDW WKH FRQVHQW GHFUHH GRHV QRW $GGUHVVLQJWKH8QLRQVj DUJXPHQWVWKDWWKHGLVWULFWFRXUW LQYROYH D ODERU GLVSXWH ,Q $HURQDXWLFDO WKH &RXUW RI $SSHDOV IRU WKH ODFNHGWKHDXWKRULW\WRHQWHUWKHFRQVHQWGHFUHHWKHGLVWULFW 6HFRQG &LUFXLW FRQFOXGHG WKDW WKH GLVWULFW FRXUW KDG MXULVGLFWLRQ WR HQMRLQ D FRPSDQ\ IURP SURFHHGLQJ ZLWK LWV UHVWUXFWXULQJ SODQV ZKLFK LQFOXGHG FRXUWFRQFOXGHGWKDWWKHFRQVHQWGHFUHHGLGQRWYLRODWHWKH D SHUPDQHQW WUDQVIHU RI SURGXFWLRQ ZRUN IURP &RQQHFWLFXW WR 7H[DV 1RUULV/D*XDUGLD$FWEHFDXVHWKH†FODLPVDJDLQVWWKH 2NODKRPD DQG $UNDQVDV LQ YLRODWLRQ RI D FROOHFWLYH EDUJDLQLQJ &LW\ZHUHRQO\LQFLGHQWDOWRWKHODERUGLVSXWHDQGWKHUHIRUH DJUHHPHQW 7KH FRXUW QRWHG WKDW WKH LQMXQFWLRQ SURPRWHG WKH SXUSRVH RI WKH$FWGLGQRWDSSO\7KHGLVWULFWFRXUWDOVRFRQFOXGHGWKDW WKH $FW ZKLFK LV WR SURWHFW HPSOR\HHVj DELOLW\ WR RUJDQL]H DQG EDUJDLQ WKHHQWU\RIWKHFRQVHQWGHFUHHGLGQRWYLRODWHWKH @YLROHQFHDQGLPSHGLPHQWVRQDFFHVVWR HPSOR\HUHPSOR\HH UHODWLRQVKLS >LV@ WKH PDWUL[ RI WKH DQG IURP WKH 0DQVILHOG IDFLOLWLHVl ,G DW   )LQDOO\ WKH FRQWURYHUV\l&ROXPELD5LYHU3DFNHUV$VVRFLDWLRQ,QFY GLVWULFWFRXUWFRQFOXGHGWKDWLWGLGQRWH[FHHGLWVDXWKRULW\E\ +LQWRQ86  VHHDOVRsDFNVRQYLOOH%XON LQYRNLQJ WKH 8QLWHG 6WDWHV 0DUVKDOV WR PRQLWRU WKH 7HUPLQDOV,QFY,QWHUQDWLRQDO/RQJVKRUHPHQ V$VVRFLDWLRQ FRPSOLDQFHRIWKHFRQVHQWGHFUHHEHFDXVHHQIRUFHPHQWRIWKH 86   FRQVHQWGHFUHHZDVLQFLGHQWDOWRWKH0DUVKDOVjIHGHUDOGXWLHV WRHQIRUFHVHWWOHPHQWRID†FODLP 7KHFRQVHQWGHFUHHLQWKLVFDVHFOHDUO\LQYROYHVRUJURZV RXWRIDODERUGLVSXWH7KHODQJXDJHRIWKHFRQVHQWGHFUHH &$FWLRQVLQ7KLV&RXUW LWVHOILQGLFDWHVWKDWLWSHUWDLQVGLUHFWO\WRWKHODERUGLVSXWHDW WKH$UPFR0DQVILHOGSODQW 2Q0D\WKH8QLRQVILOHGD1RWLFHRI$SSHDODV ZHOODVDSHWLWLRQIRUZULWRIPDQGDPXVXQGHUWKH$OO:ULWV ,QDGGLWLRQWRLWVFRQWLQXLQJMXULVGLFWLRQWRHQIRUFHWKH $FW86&†RULQWKHDOWHUQDWLYHDPRWLRQIRUDQ RWKHUSURYLVLRQVRIWKLV&RQVHQW'HFUHHWKLV&RXUWVKDOO H[SHGLWHG DSSHDO  7KH 8QLRQV DOVR ILOHG D PRWLRQ WR VWD\ PDNHDQGHQIRUFHVXFKRWKHURUGHUVUHVSHFWLQJFRQGXFW HQIRUFHPHQWRIWKHFRQVHQWGHFUHHSHQGLQJGHFLVLRQRQWKH E\ SULYDWH SHUVRQV UHODWHG WR WKH ODERU GLVSXWH DV WKH PDQGDPXVSHWLWLRQRULQWKHDOWHUQDWLYHSHQGLQJDSSHOODWH &RXUWGHHPVDSSURSULDWHWRHQVXUHWKHPDLQWHQDQFHRI UHYLHZRIWKHFRQVHQWGHFUHH:HHQWHUHGDQRUGHUVWD\LQJ SXEOLFRUGHU HQIRUFHPHQWRIWKHFRQVHQWGHFUHHSHQGLQJDIXUWKHURUGHU 2Q sXQH   ZH HQWHUHG DQ RUGHU FRQVROLGDWLQJ WKH &RQVHQW'HFUHHDW HPSKDVLVDGGHG  SHWLWLRQIRUZULWRIPDQGDPXVZLWKWKHDSSHDO ,,,',6&866,21 DVVRFLDWLRQV RI HPSOR\HHV RU ZKHQ WKH FDVH LQYROYHV DQ\ $sXULVGLFWLRQ FRQIOLFWLQJ RU FRPSHWLQJ LQWHUHVWV LQ D ODERU GLVSXWH DV GHILQHG LQ WKLV VHFWLRQ RI SHUVRQV SDUWLFLSDWLQJ RU LQWHUHVWHG WKHUHLQ DV GHILQHG LQ WKLV VHFWLRQ  7KH8QLRQVDUJXHWKDWZHKDYHMXULVGLFWLRQWRFRQVLGHUWKH E $ SHUVRQ RU DVVRFLDWLRQ VKDOO EH KHOG WR EH D SHUVRQ FRQVHQW GHFUHH XQGHU  86& †  D   EHFDXVH WKH SDUWLFLSDWLQJ RU LQWHUHVWHG LQ D ODERU GLVSXWH LI UHOLHI LV VRXJKW FRQVHQW GHFUHH LQFOXGHV DQ LQMXQFWLRQ  6HH  86& DJDLQVW KLP RU LW DQG LI KH RU LW LV HQJDJHG LQ WKH VDPH LQGXVWU\ †  D   SURYLGLQJ DSSHOODWH MXULVGLFWLRQ RYHU WUDGH FUDIW RU RFFXSDWLRQ LQ ZKLFK VXFK GLVSXWH RFFXUV RU KDV LQWHUORFXWRU\ RUGHUV mJUDQWLQJ FRQWLQXLQJ PRGLI\LQJ D GLUHFW RU LQGLUHFW LQWHUHVW WKHUHLQ RU LV D PHPEHU RIILFHU RU DJHQW RI DQ\ DVVRFLDWLRQ FRPSRVHG LQ ZKROH RU LQ SDUW RI UHIXVLQJRUGLVVROYLQJLQMXQFWLRQVRUUHIXVLQJWRGLVVROYHRU HPSOR\HUV RU HPSOR\HHV HQJDJHG LQ VXFK LQGXVWU\ WUDGH FUDIW PRGLI\ LQMXQFWLRQVl   $UPFR DUJXHV LQ UHVSRQVH WKDW WKH RU RFFXSDWLRQ FRQVHQW GHFUHH GRHV QRW LQFOXGH DQ LQMXQFWLRQ DQG WKDW ZH F 7KH WHUP ODERU GLVSXWH LQFOXGHV DQ\ FRQWURYHUV\ VKRXOG DSSO\ sRKQVWRQ 'HYHORSPHQW *URXS ,QF Y FRQFHUQLQJ WHUPV RU FRQGLWLRQV RI HPSOR\PHQW RU FRQFHUQLQJ &DUSHQWHUV/RFDO8QLRQ1R  )6XSS ' WKH DVVRFLDWLRQ RU UHSUHVHQWDWLRQ RI SHUVRQV LQ QHJRWLDWLQJ IL[LQJ PDLQWDLQLQJ FKDQJLQJ RU VHHNLQJ WR DUUDQJH WHUPV RU 1s   DQG WUHDW WKH FRQVHQW GHFUHH DV D VHWWOHPHQW FRQGLWLRQV RI HPSOR\PHQW UHJDUGOHVV RI ZKHWKHU RU QRW WKH DJUHHPHQW,Qs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sRKQVWRQ 'HIHQGDQWVGHSULYHGLWRILWVVWDWXWRU\DQGFRQVWLWXWLRQDO FRXUWKHOGWKDWWKHVWLSXODWLRQVZHUHQRWLQMXQFWLRQVUHDVRQLQJ SURSHUW\ ULJKWV WR RSHUDWH LWV SODQW  7KHVH FODLPV DUH WKDW ZKROO\ LQGHSHQGHQW RI WKH ODERU GLVSXWH EHWZHHQ WKH 3ODLQWLIIDQG8QLRQ'HIHQGDQWV 7KH DJUHHPHQWV HPERGLHG LQ WKH VWLSXODWLRQV GR QRW DSSO\WRWKHXQLRQVEHFDXVHWKHXQLRQVZHUHQRWSDUWLHV 7KH8QLRQVLQWXUQDUJXHWKDWWKHLQMXQFWLYHSURYLVLRQVRI WRWKHP)LUHILJKWHUV/RFDO8QLRQ1RY6WRWWV WKH FRQVHQW GHFUHH UHODWH WR WKH ODERU GLVSXWH DW $UPFRj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mDQ\ FRQWURYHUV\ SDUW\WRYLRODWHWKHDJUHHPHQWV FRQFHUQLQJWHUPVRUFRQGLWLRQVRIHPSOR\PHQWRUFRQFHUQLQJ WKH DVVRFLDWLRQ RU UHSUHVHQWDWLRQ RI SHUVRQV QHJRWLDWLQJ ,GDW HPSKDVLVDGGHG  IL[LQJPDLQWDLQLQJFKDQJLQJRUVHHNLQJWRDUUDQJHWHUPVRU FRQGLWLRQVRIHPSOR\PHQWUHJDUGOHVVRIZKHWKHURUQRWWKH 7KHVWLSXODWLRQVLQsRKQVWRQKRZHYHUDUHGLVWLQJXLVKDEOH GLVSXWDQWVVWDQGLQWKHSUR[LPDWHUHODWLRQRIHPSOR\HUDQG IURP WKH FRQVHQW GHFUHH  6SHFLILFDOO\ WKH FRQVHQW GHFUHH HPSOR\HHl86&† F 7KH6XSUHPH&RXUWKDV ELQGVWKH8QLRQV,WLVFOHDUIURPWKHODQJXDJHRIWKHFRQVHQW GHFUHHWKDWLWFRQWDLQVDQLQMXQFWLRQHQMRLQLQJm>D@Q\SHUVRQ ZKRYLRODWHVlLWVSURYLVLRQV7KHUHIRUHZHKDYHMXULVGLFWLRQ  RYHUWKHFRQVHQWGHFUHHXQGHU86&† D   7KH SHUWLQHQW SURYLVLRQV RI  86& †  UHDG D $ FDVH VKDOO EH KHOG WR LQYROYH RU WR JURZ RXW RI D ODERU $UPFRDUJXHVWKDWHYHQLIWKHFRQVHQWGHFUHHLQFOXGHVDQ GLVSXWH ZKHQ WKH FDVH LQYROYHV SHUVRQV ZKR DUH HQJDJHG LQ WKH VDPH LQGXVWU\ WUDGH FUDIW RU RFFXSDWLRQ RU KDYH GLUHFW RU LQMXQFWLRQKRZHYHUWKLV&RXUWODFNVMXULVGLFWLRQWRFRQVLGHU LQGLUHFW LQWHUHVWV WKHUHLQ RU ZKR DUH HPSOR\HHV RI WKH VDPH WKH 8QLRQVj DSSHDO EHFDXVH WKH FRQVHQW GHFUHH LV DQ HPSOR\HU RU ZKR DUH PHPEHUV RI WKH VDPH RU DQ DIILOLDWHG LQWHUORFXWRU\RUGHU7KLVDUJXPHQWODFNVPHULW8QGHU RUJDQL]DWLRQ RI HPSOR\HUV RU HPSOR\HHV ZKHWKHU VXFK GLVSXWH 86&†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lZLWKRXWILUVWFRQGXFWLQJDQHYLGHQWLDU\KHDULQJ RYHUDOO QDWXUH DQG H[WHQW RI WKH UHOLHI JUDQWHG LV VSHFLILHG 86&† )XUWKHU WKHUH LV QR VSHFLILFLW\ UHTXLUHPHQW LQ  86& † D   7KH GLVWULFW FRXUW FRQFOXGHG LQ WKH 0HPRUDQGXP RI 2SLQLRQH[SODLQLQJWKHUHDVRQVIRULWVDSSURYDORIWKHFRQVHQW +DYLQJ GHWHUPLQHG WKDW WKH FRQVHQW GHFUHH FRQWDLQV DQ GHFUHHWKDWWKH†FODLPRIFRQVSLUDF\DJDLQVWWKH&LW\ LQMXQFWLRQVXFKWKDWWKLV&RXUWKDVMXULVGLFWLRQSXUVXDQWWR UHVROYHGE\WKHFRQVHQWGHFUHHGLGQRWDULVHRXWRIDODERU 86&† D  ZHPXVWQRZFRQVLGHUZKHWKHUWKH GLVSXWHUHDVRQLQJ HQWU\RIWKHFRQVHQWGHFUHHZDVSURSHU 7KH&RQVHQW'HFUHHHQIRUFHVDVHWWOHPHQWRIWKH %6WDQGDUGRI5HYLHZ FODLPVDJDLQVWWKH0DQVILHOG'HIHQGDQWV7KHVHFODLPV GRQRWDULVHRXWRIDmODERUGLVSXWHlDVGHILQHGLQWKH$FW :HUHYLHZDJUDQWRIDSUHOLPLQDU\LQMXQFWLRQIRUDQDEXVH EHFDXVHWKH\GRQRWUHODWHWRWKHWHUPVDQGFRQGLWLRQVRI RIGLVFUHWLRQ6HH$OOLHG6\VWHPV/WGY7HDPVWHUV1DWLRQDO HPSOR\PHQWRUWKHUHSUHVHQWDWLRQRIWKHHPSOR\HHVLQ $XWRPRWLYH 7UDQVSRUWHUV ,QGXVWU\ 1HJRWLDWLQJ &RPPLWWHH QHJRWLDWLQJ RU IL[LQJ WKH WHUPV DQG FRQGLWLRQV RI /RFDO 8QLRQ   )G   WK &LU    $Q DEXVHRIGLVFUHWLRQLVSUHVHQWZKHQWKHGLVWULFWFRXUWmDSSOLHV WKH LQFRUUHFW OHJDO VWDQGDUG PLVDSSOLHV WKH FRUUHFW OHJDO  6SHFLILFDOO\ D GLVWULFW FRXUW PD\ QRW LVVXH DQ LQMXQFWLRQ LQ D FDVH VWDQGDUGRUUHOLHVXSRQFOHDUO\HUURQHRXVILQGLQJVRIIDFWl LQYROYLQJ RU JURZLQJ RXW RI D ODERU GLVSXWH EHIRUH WDNLQJ WKH IROORZLQJ ,GDW:HUHYLHZWKHGLVWULFWFRXUW VILQGLQJVRIIDFWIRU VWHSV FOHDUHUURUDQGLWVFRQFOXVLRQVRIODZGHQRYR6HHLG FLWLQJ    KHDULQJ WKH WHVWLPRQ\ RI ZLWQHVVHV LQ RSHQ FRXUW ZLWK *ROGHQ Y .HOVH\+D\HV &R  )G   WK &LU RSSRUWXQLW\ IRU FURVVH[DPLQDWLRQ LQ VXSSRUW RI WKH DOOHJDWLRQV   RI D FRPSODLQW PDGH XQGHU RDWK DQG WHVWLPRQ\ LQ RSSRVLWLRQ WKHUHWR LI RIIHUHG DQG H[FHSW DIWHU ILQGLQJV RI IDFW E\ WKH FRXUW &7KH1RUULV/D*XDUGLD$FW WR WKH HIIHFWo D 7KDW XQODZIXO DFWV KDYH EHHQ WKUHDWHQHG DQG ZLOO EH FRPPLWWHG XQOHVV UHVWUDLQHG RU KDYH EHHQ FRPPLWWHG DQG ZLOO EH 7KH 8QLRQV DUJXH WKDW WKH 1RUULV/D*XDUGLD $FW mWKH FRQWLQXHG XQOHVV UHVWUDLQHG EXW QR LQMXQFWLRQ RU WHPSRUDU\ $FWl   86& †  GLYHVWHG WKH GLVWULFW FRXUW RI UHVWUDLQLQJ RUGHU VKDOO EH LVVXHG RQ DFFRXQW RI DQ\ WKUHDW RU MXULVGLFWLRQWRHQWHUWKHFRQVHQWGHFUHHEHFDXVHLWIDLOHGWR XQODZIXO DFW H[FHSWLQJ DJDLQVW WKH SHUVRQ RU SHUVRQV FRQGXFWDQHYLGHQWLDU\KHDULQJ(QDFWHGWRmWDN>H@WKHIHGHUDO DVVRFLDWLRQ RU RUJDQL]DWLRQ PDNLQJ WKH WKUHDW RU FRPPLWWLQJ WKH FRXUWVRXWRIWKHODERULQMXQFWLRQEXVLQHVVlsDFNVRQYLOOH%XON XQODZIXO DFW RU DFWXDOO\ DXWKRUL]LQJ RU UDWLI\LQJ WKH VDPH DIWHU 7HUPLQDOV,QFY,QWHUQDWLRQDO/RQJVKRUHPHQ V$VVRFLDWLRQ DFWXDO NQRZOHGJH WKHUHRI E 7KDW VXEVWDQWLDO DQG LUUHSDUDEOH LQMXU\ WR FRPSODLQDQW V 86  WKH$FWGHSULYHVIHGHUDOFRXUWVRI SURSHUW\ ZLOO IROORZ MXULVGLFWLRQmWRLVVXHDQ\UHVWUDLQLQJRUGHURUWHPSRUDU\RU F 7KDW DV WR HDFK LWHP RI UHOLHI JUDQWHG JUHDWHU LQMXU\ ZLOO EH SHUPDQHQWLQMXQFWLRQLQDFDVHLQYROYLQJRUJURZLQJRXWRID LQIOLFWHG XSRQ FRPSODLQDQW E\ WKH GHQLDO RI UHOLHI WKDQ ZLOO EH LQIOLFWHG XSRQ GHIHQGDQWV E\ WKH JUDQWLQJ RI UHOLHI G 7KDW FRPSODLQDQW KDV QR DGHTXDWH UHPHG\ DW ODZ DQG H 7KDW WKH SXEOLF RIILFHUV FKDUJHG ZLWK WKH GXW\ WR SURWHFW FRPSODLQDQW V SURSHUW\ DUH XQDEOH RU XQZLOOLQJ WR IXUQLVK DGHTXDWH SURWHFWLRQ  86& † 
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