02a0161p.06

00-6413Court of Appeals for the Sixth CircuitMay 7, 2002

Full text

7KH +RQRUDEOH -RKQ * +H\EXUQ ,, &KLHI 8QLWHG 6WDWHV 'LVWULFW
-XGJH IRU WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ

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
6(&5(7$5< 2) 7+( 81,7('
67$7(6 '(3$570(17 2)
/$%25
3ODLQWLII$SSHOOHH
Y
*(25*( ' *,//(< %,//<
'($1 *2)257+ &(1785<
+($/7+ 6(59,&(6 ,1&
'HIHQGDQWV$SSHOODQWV
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH
1R²:LOOLDP-+D\QHV-U'LVWULFW-XGJH
$UJXHG0DUFK
'HFLGHGDQG)LOHG0D\
%HIRUH6,/(5DQG*,/0$1&LUFXLW-XGJHV
+(<%851&KLHI'LVWULFW-XGJH

-- 1 of 4 --

6HFUHWDU\8QLWHG6WDWHV'HS¶W
RI/DERUY*LOOH\HWDO
1R
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' :LOOLDP 3 6XULDQR /$: 2)),&(6 2)
:,//,$03685,$125LYHUVLGH,OOLQRLVIRU$SSHOODQWV
5RELQ6SULQJEHUJ3DUU\86'(3$570(172)/$%25
2)),&( 2) 7+( 62/,&,725 :DVKLQJWRQ '& IRU
$SSHOOHH21%5,():LOOLDP36XULDQR/$:2)),&(6
2) :,//,$0 3 685,$12 5LYHUVLGH ,OOLQRLV IRU
$SSHOODQWV5RELQ6SULQJEHUJ3DUU\86'(3$570(17
2)/$%252)),&(2)7+(62/,&,725:DVKLQJWRQ
'&IRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
521$/'/((*,/0$1&LUFXLW-XGJH&HQWXU\+HDOWK
6HUYLFHV ,QF &+6 D KROGLQJ FRPSDQ\ IRU D QXPEHU RI
KRPH KHDOWKFDUH DJHQFLHV HVWDEOLVKHG DQ (PSOR\HH 6WRFN
2ZQHUVKLS3ODQ (623 LQDQGDSSRLQWHGLWVWRSWZR
RIILFHUV *HRUJH *LOOH\ DQG %LOO *RIRUWK WR VHUYH DV WKH
WUXVWHHV&+6FRQWULEXWHGWRWKH(623GXULQJ
DQG$OOEXWKRZHYHUZDVSURPSWO\
ZLWKGUDZQIURPWKH(623IRUXVHLQPHHWLQJ&+6¶VJHQHUDO
FRUSRUDWHRSHUDWLQJH[SHQVHV7KH6HFUHWDU\RIWKH8QLWHG
6WDWHV'HSDUWPHQWRI/DERUEURXJKWVXLWDJDLQVW&+6DQGWKH
WUXVWHHVFODLPLQJWKDWWKHLUIDLOXUHWRUHSODFHWKHZLWKGUDZQ
IXQGVZLWKDVVHWVRIHTXLYDOHQWYDOXHYLRODWHGWKH(PSOR\HH
5HWLUHPHQW ,QFRPH 6HFXULW\ $FW (5,6$ 6XPPDU\
MXGJPHQW ZDV JUDQWHG LQ IDYRU RI WKH 6HFUHWDU\ ZLWK WKH
GLVWULFW FRXUW KROGLQJ WKH GHIHQGDQWV MRLQWO\ DQG VHYHUDOO\
OLDEOHIRUWKHWKDWZDVQHYHUUHSODFHG)RUWKH
UHDVRQVVHWIRUWKEHORZZH$)),50WKHMXGJPHQWRIWKH
GLVWULFWFRXUW
1R 6HFUHWDU\8QLWHG6WDWHV'HS¶W
RI/DERUY*LOOH\HWDO

$OWKRXJK&+6UHWDLQHGFHUWDLQDVVHWVDIWHUWKHVDOHWR
,+6LWZDVDOVRVWLOOVXEMHFWWRYDULRXVOLDELOLWLHVWKXVPDNLQJ
WKHQHWIDLUPDUNHWYDOXHRI&+6¶VVKDUHVXQFOHDUIURPWKH
UHFRUG 7KH UHFRUG LV FOHDU KRZHYHU FRQFHUQLQJ WKH
DGPLVVLRQVE\*LOOH\DQG*RIRUWKWKDWWKHWUDQVIHUUHGVWRFN
KDG³OLWWOHRUQRYDOXH´7RWKHH[WHQWWKDWWKHDPRXQWRIWKH
ORVVFDXVHGE\WKHGHIHQGDQWV¶EUHDFKRIILGXFLDU\GXW\ZDVDW
DOODPELJXRXVWKHGLVWULFWFRXUWGLGQRWHUULQUHVROYLQJWKDW
XQFHUWDLQW\DJDLQVWWKHGHIHQGDQWV:HWKHUHIRUHDJUHHZLWK
WKHGLVWULFWFRXUW¶VGHWHUPLQDWLRQWKDWWKH&+6VWRFNKDGQR
IDLUPDUNHWYDOXHDWWKHWLPHRILWVFRQYH\DQFHWRWKH(623
DQGWKDWWKHORVVVXIIHUHGE\WKH(623ZDVDVIRXQGE\WKH
FRXUW
,,,&21&/86,21
)RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH
MXGJPHQWEHORZ

-- 2 of 4 --

6HFUHWDU\8QLWHG6WDWHV'HS¶W
RI/DERUY*LOOH\HWDO
1R
WZRWRWKUHH\HDUV7KH>(623@UHFHLYHGVWRFNDIWHUWKH
VDOHRIVXEVWDQWLDO>&+6@DVVHWVWR,+6$WWKDWWLPHDQG
QRZ>&+6¶V@VWRFNLVYLUWXDOO\ZRUWKOHVV$ORVVWRDQ
(5,6$SODQLVEDVHGXSRQWKHSUHVHQWPDUNHWYDOXH
7KH>(623¶V@>VLF@DVVHWVLQLVJRQHDQGWKDW
ORVVLVUHFRYHUDEOH
(PSKDVLVDGGHG %DVHGXSRQWKHDERYHILQGLQJVRIIDFWDQG
FRQFOXVLRQVRIODZWKHGLVWULFWFRXUWKHOGWKDW&+6*LOOH\
DQG *RIRUWK DUH ³LQGLYLGXDOO\ DQG MRLQWO\ OLDEOH IRU WKH
UHVWRUDWLRQ RI WKH >(623¶V@ DVVHWV LQ LH
PLOOLRQ´
1HLWKHU SDUW\ KDV FLWHG DQ\ UHOHYDQW FDVH ODZ RQ WKH
TXHVWLRQ RI ZKLFK SDUW\ EHDUV WKH EXUGHQ RI SURYLQJ WKH
DPRXQWRIORVVLQDQ(5,6$DFWLRQ$OWKRXJKWKHVWDWXWHGRHV
QRWVWDWHKRZVXFKDORVVVKRXOGEHPHDVXUHGVHYHUDOFLUFXLWV
KDYHKHOGWKDWLQPHDVXULQJDORVVWKHEXUGHQRISHUVXDVLRQ
VKRXOGEHSODFHGRQWKHEUHDFKLQJILGXFLDU\5RWKY6DZ\HU
&OHDWRU/XPEHU&R)G WK&LU ³7R
WKHH[WHQWWKDWWKHUHDUHDPELJXLWLHVLQGHWHUPLQLQJORVVZH
UHVROYH WKHP DJDLQVW WKH WUXVWHH LQ EUHDFK´ .LP Y
)XMLNDZD )G WK &LU ³,Q
GHWHUPLQLQJ WKH DPRXQW WKDW D EUHDFKLQJ ILGXFLDU\ PXVW
UHVWRUH WR WKH >EHQHILW IXQG@ DV D UHVXOW RI D SURKLELWHG
WUDQVDFWLRQWKHFRXUWVKRXOGUHVROYHGRXEWVLQIDYRURIWKH
SODLQWLIIV´ TXRWDWLRQPDUNVRPLWWHG 'RQRYDQY%LHUZLUWK
)G G&LU ³>2@QFHDEUHDFKRIWUXVW
LV HVWDEOLVKHG XQFHUWDLQWLHV LQ IL[LQJ GDPDJHV ZLOO EH
UHVROYHGDJDLQVWWKHZURQJGRHU´ :HQRZMRLQWKHVHRWKHU
FLUFXLWV LQ KROGLQJ WKDW WR WKH H[WHQW WKDW WKHUH LV DQ\
DPELJXLW\LQGHWHUPLQLQJWKHDPRXQW RIORVVLQDQ(5,6$
DFWLRQ WKH XQFHUWDLQW\ VKRXOG EH UHVROYHG DJDLQVW WKH
EUHDFKLQJILGXFLDU\
$VQRWHGDERYHWKHGHIHQGDQWVKDYHFRQFHGHGWKDWWKH\
EUHDFKHGWKHLUILGXFLDU\GXW\WRWKH(623DQGWKDWWKH\IDLOHG
WRSUHVHQWDQ\HYLGHQFHWKDWWKH&+6VWRFNKDGDSRVLWLYHIDLU
PDUNHWYDOXHDWWKHWLPHLWZDVWUDQVIHUUHGWRWKH(623LQ
1R 6HFUHWDU\8QLWHG6WDWHV'HS¶W
RI/DERUY*LOOH\HWDO

,%$&.*5281'
$ )DFWXDOEDFNJURXQG
&+6HVWDEOLVKHGDQ(623RQ6HSWHPEHU7KH
WUXVWHHVRIWKH(623ZHUH*HRUJH*LOOH\WKH&KDLUPDQRIWKH
%RDUGRI&+6DQG%LOO*RIRUWKWKH3UHVLGHQWDQG&(2RI
&+6&+6FRQWULEXWHGWKHIROORZLQJDPRXQWVWRWKH(623
RQ6HSWHPEHURQ$XJXVW
DQGRQ$XJXVW2QHLWKHUWKH
VDPH RU WKH QH[W GD\ DIWHU HDFK FRQWULEXWLRQ ZDV PDGH
KRZHYHU DOO EXW ZDV WUDQVIHUUHG EDFN WR &+6
RQ6HSWHPEHURQ$XJXVW
DQGRQ$XJXVW7KHWRWDODPRXQW
WKXVUHPRYHGIURPWKH(623ZDV&+6LVVXHG
SURPLVVRU\QRWHVWRWKH(623DVFRQVLGHUDWLRQIRUHDFKRI
WKHVHWUDQVIHUVSURYLGLQJWKDWWKHDPRXQWVRZHGZRXOGEH
SDLGLQ&+6VWRFNRIHTXLYDOHQWYDOXH
2Q6HSWHPEHUEHIRUH&+6GHOLYHUHGDQ\VWRFNLQ
DFFRUGDQFHZLWKWKHSURPLVVRU\QRWHV&+6DQGHLJKWRILWV
WHQVXEVLGLDU\KRPHKHDOWKDJHQFLHVWUDQVIHUUHGWKHEXONRI
WKHLU RSHUDWLQJ DVVHWV WR ,QWHJUDWHG +HDOWK 6HUYLFHV ,QF
,+6 ,+6 DV SDUW RI WKLV DJUHHPHQW DVVXPHG DQG SDLG
VLJQLILFDQWOLDELOLWLHVRZHGE\&+6DQGWKHHLJKWVXEVLGLDU\
KRPHKHDOWKDJHQFLHV
&+6ILQDOO\WUDQVIHUUHGVKDUHVRILWVVWRFNWRWKH
(623LQSXUSRUWHGVDWLVIDFWLRQRIWKHSURPLVVRU\QRWHVRQ
)HEUXDU\7KHQXPEHURIVKDUHVZDVGHWHUPLQHGE\
DQDSSUDLVDORIWKHVKDUHV¶YDOXHDVRIWKHHQGRIDQG
WKH\HDUVLQZKLFKWKHZDVWUDQVIHUUHGIURP
WKH(623WR&+6QRWRQWKHEDVLVRIWKHVKDUHV¶IDLUPDUNHW
YDOXHLQ$VDUHVXOWWKHDSSUDLVDOGLGQRWWDNHLQWR
DFFRXQW&+6¶V6HSWHPEHUVDOHRIDVVHWVWR,+6
% 3URFHGXUDOEDFNJURXQG
2Q0D\WKH6HFUHWDU\ILOHGDFRPSODLQWXQGHU
(5,6$86&††DJDLQVW&+6*LOOH\DQG

-- 3 of 4 --

6HFUHWDU\8QLWHG6WDWHV'HS¶W
RI/DERUY*LOOH\HWDO
1R
*RIRUWK WKHGHIHQGDQWV DOOHJLQJWKDWWKH\KDGEUHDFKHGWKHLU
ILGXFLDU\ GXWLHV WR WKH (623 $ )DOVH &ODLPV $FW )&$
ODZVXLWKDGDOUHDG\EHHQEURXJKWDJDLQVWWKHGHIHQGDQWVLQ
$IWHUWKH-XVWLFH'HSDUWPHQWLQWHUYHQHGLQWKH)&$
FODLPWKHWZRFDVHVZHUHFRQVROLGDWHGIRUGLVFRYHU\DQGWULDO
7KH6HFUHWDU\DQGWKHGHIHQGDQWVILOHGFURVVPRWLRQVIRU
VXPPDU\MXGJPHQW$IWHUKHDULQJRUDODUJXPHQWWKHGLVWULFW
FRXUWJUDQWHGVXPPDU\MXGJPHQWLQIDYRURIWKH6HFUHWDU\
KROGLQJWKDWWKHGHIHQGDQWVZHUH³MRLQWO\DQGVHYHUDOO\OLDEOH
WR UHVWRUH WR WKH >(623@ WKH WRWDO DPRXQW RI ´
7KLVDPRXQWUHSUHVHQWVWKHWKDWZDVWUDQVIHUUHG
IURP WKH (623 WR &+6 LQ DQG SOXV DFFUXHG
LQWHUHVW$WLPHO\DSSHDOE\WKHGHIHQGDQWVIROORZHG
,,$1$/<6,6
$ 6WDQGDUGRIUHYLHZ
$GLVWULFWFRXUW¶VGLVPLVVDORIDFRPSODLQWSXUVXDQWWR5XOH
RIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH LVUHYLHZHGGH
QRYR+ROORZD\Y%UXVK)G WK&LU
6XPPDU\ MXGJPHQW LV SURSHU ZKHUH WKHUH DUH QR JHQXLQH
LVVXHV RI PDWHULDO IDFW LQ GLVSXWH DQG WKH PRYLQJ SDUW\ LV
HQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ)HG5&LY3 F
,QGHFLGLQJDPRWLRQIRUVXPPDU\MXGJPHQWWKHFRXUWPXVW
YLHZWKHHYLGHQFHDQGGUDZDOOUHDVRQDEOHLQIHUHQFHVLQIDYRU
RI WKH QRQPRYLQJ SDUW\ 0DWVXVKLWD (OHF ,QGXV &R Y
=HQLWK5DGLR&RUS86 7KHMXGJHLV
QRW WR ³ZHLJK WKH HYLGHQFH DQG GHWHUPLQH WKH WUXWK RI WKH
PDWWHUEXWWRGHWHUPLQHZKHWKHUWKHUHLVDJHQXLQHLVVXHIRU
WULDO´$QGHUVRQY/LEHUW\/REE\,QF86
$JHQXLQHLVVXHIRUWULDOH[LVWVRQO\ZKHUHWKHUHLV
VXIILFLHQW³HYLGHQFHRQZKLFKWKHMXU\FRXOGUHDVRQDEO\ILQG
IRUWKH>QRQPRYLQJSDUW\@´,GDW
1R 6HFUHWDU\8QLWHG6WDWHV'HS¶W
RI/DERUY*LOOH\HWDO

% $PRXQWRIORVV
7KH GHIHQGDQWV FRQWHQG WKDW WKH GLVWULFW FRXUW HUUHG LQ
DGRSWLQJWKH6HFUHWDU\¶VDUJXPHQWWKDWWKH&+6VWRFNWKDW
ZDVWUDQVIHUUHGWRWKH(623KDGQRIDLUPDUNHWYDOXH7KH\
PDLQWDLQWKDWWKHEXUGHQRISURYLQJWKHDPRXQWRIWKHORVV
ZDVRQWKH6HFUHWDU\DQGWKDWWKH6HFUHWDU\GLGQRWVXEPLW
DQ\FRPSHWHQWSURRIRQWKLVLVVXH$VDUHVXOWWKHGHIHQGDQWV
FODLPWKDWWKHYDOXHRIWKHVWRFNFRQVWLWXWHVDJHQXLQHLVVXHRI
PDWHULDOIDFW7KHGHIHQGDQWVFRQFHGHKRZHYHUWKDWWKH\
EUHDFKHGWKHLUILGXFLDU\GXW\7KH\DOVRFRQFHGHWKDWWKH\GLG
QRWSUHVHQWDQ\HYLGHQFHRIWKHIDLUPDUNHWYDOXHRIWKHVWRFN
)LQDOO\WKHGHIHQGDQWVDFNQRZOHGJHWKDW³LIWKLV&RXUWZHUH
WRKROGWKDW>WKHGHIHQGDQWV@UDWKHUWKDQWKH6HFUHWDU\ERUH
WKHEXUGHQRISURRI>RQWKLVLVVXH@WKHQWKLVDSSHDOFDQEH
GLVSRVHGRIUHDGLO\´
,QFRQFOXGLQJWKDWWKHGHIHQGDQWVZHUHMRLQWO\DQGVHYHUDOO\
OLDEOHWRUHVWRUHWRWKH(623WKHGLVWULFWFRXUW
PDGH WKH IROORZLQJ ILQGLQJV RI IDFW ³>7@KH GHIHQGDQWV¶
DQVZHUWRWKH8QLWHG6WDWHV¶FRPSODLQWFRQFHGHVWKDWDIWHUWKH
VDOH>RIDVVHWV@WR,+6>&+6@VWRFNμKDGOLWWOHRUQRYDOXH¶
DQG WKH >(623@ μUHFHLYHG QR SURFHHGV RU ILQDQFLDO EHQHILW
IURPWKH>,+6@VDOH¶*LOOH\¶VGHSRVLWLRQWHVWLPRQ\LVWRWKH
VDPHHIIHFW´7KHGLVWULFWFRXUWGLGQRWHKRZHYHUWKDWDIWHU
WKHVDOHRIDVVHWVWR,+6&+6³UHWDLQHGVLJQLILFDQWDVVHWV
LQFOXGLQJDSULFHDGMXVWPHQWDSXUFKDVHSULFH
KROGEDFNLQ>D@OLWLJDWLRQIXQGD
VKDUHGLQWHUHVWZLWK,+6LQWKHUHVXOWVIURP>&+6¶V@SHQGLQJ
DSSHDOVFKDOOHQJLQJWKH*RYHUQPHQW¶V0HGLFDUHRYHUSD\PHQW
FODLPVHVWLPDWHGDW>@´DQGWKHULJKWWRRSHUDWH
WZRKRPHKHDOWKDJHQFLHV
$IWHUPDNLQJWKHDERYHILQGLQJVRIIDFWWKHGLVWULFWFRXUW
FRQFOXGHGWKDWWKH(623
VXIIHUHGDORVVZKHQWKHPLOOLRQZHUHWUDQVIHUUHG
IURP WKH >(623@ WR >&+6@ LQ DQG 7KH
>(623@GLGQRWDFFUXHDQ\EHQHILWIRUWKDWWUDQVIHUIRU

-- 4 of 4 --

Continue your research in ChatGPT or Claude

Connect Omnilex to search the legal corpus from your AI assistant.