02a0182p.06

00-4459Court of Appeals for the Sixth CircuitMay 22, 2002

Full text

7KH +RQRUDEOH -RVHSK 0 +RRG 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU WKH
(DVWHUQ '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
(':$5' :,/+(/0
3ODLQWLII$SSHOOHH
Y
-2+1 $ %2**6'HSXW\DQG
-26(3+ 7$11(5'HSXW\
'HIHQGDQWV$SSHOODQWV
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW$NURQ
1R²'DYLG''RZG-U'LVWULFW-XGJH
6XEPLWWHG0D\
'HFLGHGDQG)LOHG0D\
%HIRUH68+5+(,15,&+DQG*,/0$1&LUFXLW-XGJHV
+22''LVWULFW-XGJH

-- 1 of 4 --

:LOKHOPY%RJJVHWDO 1R
BBBBBBBBBBBBBBBBB
&2816(/
21 %5,() 7KRPDV 1 0LFKDHOV 2)),&( 2) 7+(
0$+21,1* &2817< 3526(&8725 <RXQJVWRZQ
2KLRIRU$SSHOODQWV'DYLG-*HUFKDN%RDUGPDQ2KLRIRU
$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
-26(3+0+22''LVWULFW-XGJH'HIHQGDQWVDSSHDOWKH
GLVWULFW FRXUW¶V GHQLDO RI GHIHQGDQWV¶ PRWLRQ IRU VXPPDU\
MXGJPHQWRQWKHEDVLVRITXDOLILHGLPPXQLW\)RUWKHUHDVRQV
WKDWIROORZZH5(9(56(DQG5(0$1'
,)DFWXDO+LVWRU\
,W LV D[LRPDWLF WKDW ³D GHIHQGDQW VHHNLQJ WR WDNH DQ
LQWHUORFXWRU\DSSHDOIURPWKHGHQLDORITXDOLILHGLPPXQLW\
μVKRXOGEHSUHSDUHGWRFRQFHGHWKHEHVWYLHZRIWKHIDFWVWR
WKHSODLQWLIIDQGGLVFXVVRQO\WKHOHJDOLVVXHVUDLVHGE\WKH
FDVH¶´%RRKHUY1.\8QLY%GRI5HJHQWV)G
WK&LU TXRWLQJ%HUU\PDQY5LHJHU)G
WK &LU ,Q WKH LQVWDQW FDVH
SODLQWLIIDSSHOOHH LQ KLV EULHI DGRSWV WKH GLVWULFW FRXUW¶V
UHFLWDWLRQRIWKHIDFWVDQGFRQFHGHVWKDWWKHGLVWULFWFRXUWLQLWV
RUGHUFRQVWUXHGWKHHYLGHQFH³LQWKHOLJKWPRVWIDYRUDEOHWR
>KLP@´ 'HIHQGDQWVDSSHOODQWV DOVR DFFHSW WKH XQGLVSXWHG
IDFWVDVUHFRXQWHGE\WKHGLVWULFWFRXUW
7KLVFDVHJURZVRXWRIDIDPLO\GLVSXWHEURXJKWRQE\
WKH GHDWK RI &KDUOHV :LOKHOP IDWKHU RI WKH SODLQWLII
&KDUOHV:LOKHOPGLHGPRUHWKDQ>ILYH@\HDUVDJR7KH
SODLQWLIIZDVWKHLQLWLDOILGXFLDU\IRUKLVIDWKHU¶VHVWDWH
EXW ZDV VXEVHTXHQWO\ UHPRYHG DQG KLV VLVWHU 6KHUO
)RVWHUZDVDSSRLQWHGDVWKHDGPLQLVWUDWUL[RIWKHHVWDWH
RI&KDUOHV:LOKHOP7KHSURSHUW\DW&UXP5RDGLQ
1R :LOKHOPY%RJJVHWDO
FRQFHSWRI³FRPPRQDXWKRULW\´DVVHWIRUWKLQ0DWORFNZKLFK
GHILQHV³FRPPRQDXWKRULW\´DV
WKH PXWXDO XVH RI WKH SURSHUW\ E\ SHUVRQV JHQHUDOO\
KDYLQJ MRLQW FRQWURO IRU PRVW SXUSRVHV VR WKDW LW LV
UHDVRQDEOHWRUHFRJQL]HWKDWDQ\RIWKHFRLQKDELWDQWVKDV
WKHULJKWWRSHUPLWWKHLQVSHFWLRQLQKLVRZQULJKWDQGWKDW
RWKHUVKDYHDVVXPHGWKHULVNWKDWRQHRIWKHLUPHPEHUV
PLJKWSHUPLWWKHFRPPRQDUHDWREHVHDUFKHG
0DWORFN86DW,I5RDUNZHUHJHQHUDOO\DSSOLHG
WKHQIRUH[DPSOHDQDEVHQWHHODQGORUGZRXOGKDYHWKHDELOLW\
WRFRQVHQWWRWKHVHDUFKRIDWHQDQW VUHVLGHQFH7KDWLVQRWWKH
ODZ 6HH HJ &KDSPDQ Y 8QLWHG 6WDWHV 86
KROGLQJWKDWDODQGORUGFDQQRWYDOLGO\FRQVHQWWRWKH
VHDUFKRIDKRXVHKHKDVUHQWHGWRDQRWKHU %HFDXVHWKHLVVXH
EHIRUHXVLVTXDOLILHGLPPXQLW\UDWKHUWKDQDGLUHFWFKDOOHQJH
WR5RDUNZHKDYHQRQHHGWRH[SORUHWKHPDWWHUDQ\IXUWKHU
LQWKLVFDVH
,9&RQFOXVLRQ
)RUWKHUHDVRQVH[SUHVVHGKHUHLQWKHGHFLVLRQRIWKHGLVWULFW
FRXUW GHQ\LQJ WKH GHIHQGDQWV TXDOLILHG LPPXQLW\ LV
5(9(56('DQGWKHFDVHLV5(0$1'('IRUSURFHHGLQJV
FRQVLVWHQWZLWKWKLVRSLQLRQ

-- 2 of 4 --

:LOKHOPY%RJJVHWDO 1R
7KHUHWKH&RXUWKHOGWKDW³WKHFRQVHQWRIRQHZKRSRVVHVVHV
FRPPRQDXWKRULW\RYHUSUHPLVHVRUHIIHFWVLVYDOLGDJDLQVWWKH
DEVHQW QRQFRQVHQWLQJ SHUVRQ ZLWK ZKRP WKDW DXWKRULW\ LV
VKDUHG´,GDW
7KH&RXUWWRRNWKHQRWLRQRI³FRPPRQDXWKRULW\´RQHVWHS
IXUWKHULQ,OOLQRLVY5RGULJXH]86 ZKHUHLQ
WKH &RXUW DGGUHVVHG D FUXFLDO LVVXH H[SUHVVO\ UHVHUYHG LQ
0DWORFN7KH&RXUWSXWWKDWTXHVWLRQDVIROORZV³:KHWKHU
DZDUUDQWOHVVHQWU\LVYDOLGZKHQEDVHGXSRQWKHFRQVHQWRID
WKLUG SDUW\ ZKRP WKH SROLFH DW WKH WLPH RI WKH HQWU\
UHDVRQDEO\ EHOLHYH WR SRVVHVV FRPPRQ DXWKRULW\ RYHU WKH
SUHPLVHVEXWZKRLQIDFW>GRHVQRW@´,GDW7KH&RXUW
DQVZHUHGLQWKHDIILUPDWLYH
7KLVFRXUWWRRKDVKDGRFFDVLRQWRH[SORUHWKHFRQFHSWRI
WKLUGSDUW\FRQVHQWDQGXQGHUFLUFXPVWDQFHVVLPLODUWRWKRVH
SUHVHQWE\WKHLQVWDQWFDVH,Q8QLWHG6WDWHVY5RDUN)G
WK&LU GHIHQGDQWOLYHGLQDKRPHRZQHGE\KLV
VLVWHUZKROLYHGLQWKHSULPDU\UHVLGHQFHORFDWHGRQWKHVDPH
SURSHUW\EXWZKRWHVWLILHGWKDWVKHODFNHGDXWKRUL]DWLRQWR
HQWHU KHU EURWKHU V KRPH ZLWKRXW KLV SHUPLVVLRQ $IWHU
GHIHQGDQW¶VVLVWHUFRQVHQWHGWRDVHDUFKRIWKHKRPHLQZKLFK
GHIHQGDQW ZDV OLYLQJ SROLFH IRXQG VXEVWDQWLDO DPRXQWV RI
PDULMXDQDDQGGHIHQGDQWZDVDUUHVWHG'HIHQGDQWSOHGJXLOW\
WRLOOHJDOGUXJDQGILUHDUPSRVVHVVLRQEXWUHVHUYHGKLVULJKW
WRDSSHDOWKHGLVWULFWFRXUW¶VGHQLDORIKLVPRWLRQWRVXSSUHVV
2Q DSSHDO WKLV FRXUW ILUVW DGGUHVVHG ZKHWKHU DV DQ LQLWLDO
PDWWHUGHIHQGDQW¶VVLVWHUSRVVHVVHGWKHDXWKRULW\WRFRQVHQW
WRDVHDUFKRIWKHKRPHRIZKLFKVKHZDVWKHRZQHUEXWLQ
ZKLFK GHIHQGDQW UHVLGHG 7KH FRXUW KHOG WKDW GHIHQGDQW¶V
VLVWHUZDVVRDXWKRUL]HG,GDW ³>'HIHQGDQW¶VVLVWHU@E\
ZD\RIKHURZQHUVKLSRUFRPPRQFRQWUROKDGWKHDXWKRULW\
WRFRQVHQWWRWKHREMHFWLRQDEOHVHDUFK´ 7KHFRXUWUHYHUVHG
KRZHYHURQRWKHUJURXQGV
$OWKRXJKZHKROGWKDWWKHVKHULII VGHSXWLHVDUHHQWLWOHGWR
TXDOLILHGLPPXQLW\LQOLJKWRI5RDUNWKLVLVQRWWRVD\ZHDUH
LQDJUHHPHQWWKDW5RDUNZDVFRUUHFWO\GHFLGHG5RDUNIDLOVWR
SURYLGHDUDWLRQDOHIRULWVGHSDUWXUHIURPWKH6XSUHPH&RXUW¶V
1R :LOKHOPY%RJJVHWDO
$XVWLQWRZQ>2KLR@LVDQDVVHWRIWKHHVWDWHRI&KDUOHV
:LOKHOP7KHSODLQWLIIKDVUHVLGHGLQWKH&UXP5RDG
SURSHUW\ VLQFH WKH GHDWK RI &KDUOHV :LOKHOP 6KHUO
)RVWHU LQ KHU FDSDFLW\ DV DGPLQLVWUDWUL[ RI WKH HVWDWH
FRQFOXGHG WKDW VKH QHHGHG WR FRQGXFW DQ LQYHQWRU\ DW
&UXP 5RDG DQG VHFXUHG WKH FRRSHUDWLRQ RI
GHIHQGDQWV'HSXW\6KHULIIV%RJJVDQG7DQQHUWRDVVLVWLQ
WKHLQYHQWRU\
7KHHVVHQFHRIWKHSODLQWLII¶VFDVHLVWKDW%RJJVDQG
7DQQHU YLRODWHG KLV )RXUWK $PHQGPHQW ULJKWV RQ
'HFHPEHUE\DFFRPSDQ\LQJ)RVWHUWRWKH&UXP
5RDG SURSHUW\ DQG LQVLVWLQJ XSRQ WKH DGPLWWDQFH RI
)RVWHUWRSHUPLWKHUWRFRQGXFWWKHLQYHQWRU\
7KHSODLQWLIIDOOHJHVWKDWWKHGHSXWLHVLQVLVWHGWKDWWKH\
ZHUH WKHUH SXUVXDQW WR DQ RUGHU RI WKH 3UREDWH &RXUW
7KHGHSXW\VKHULIIVFRQFHGHWKDWWKHUHZDVQRFRXUWRUGHU
MXVWLI\LQJWKHLUFRQGXFWEXWWKH\GHQ\DQ\ZURQJGRLQJ
EDVHGXSRQWKHLUVZRUQDIILGDYLWVWKDWWKHSODLQWLIIJDYH
FRQVHQW WR WKHLU HQWU\ LQWR WKH &UXP 5RDG SURSHUW\
$OWHUQDWLYHO\'HSXW\6KHULIIV%RJJVDQG7DQQHUFRQWHQG
WKDW WKH\ DUH HQWLWOHG WR D GLVPLVVDO RI WKH SODLQWLII¶V
FODLPVEDVHGXSRQTXDOLILHGLPPXQLW\
,,-XULVGLFWLRQ
,QDQ\DSSHDOIURPDGHQLDORIVXPPDU\MXGJPHQWEDVHGRQ
TXDOLILHGLPPXQLW\DQDSSHOODWHFRXUWPXVWILUVWDGGUHVVWKH
EDVLF TXHVWLRQ ZKHWKHU MXULVGLFWLRQ LV SURSHU 7KLV LV VR
EHFDXVHLQWHUORFXWRU\DSSHOODWHMXULVGLFWLRQRYHUGLVWULFWFRXUW
GHQLDOVRITXDOLILHGLPPXQLW\GRHVQRWDOZD\VOLH
7KDW GLVWULFW FRXUW GHQLDOV RI TXDOLILHG LPPXQLW\ DUH
³FROODWHUDO RUGHUV´ XQGHU &RKHQ Y %HQHILFLDO ,QGXV /RDQ
&RUS86 ZDVILUVWPDGHFOHDULQ0LWFKHOO
Y)RUV\WK86 7KHUHWKH8QLWHG6WDWHV
6XSUHPH&RXUWKHOGWKDWDGLVWULFWFRXUW¶VVXPPDU\MXGJPHQW
RUGHULVDQLPPHGLDWHO\DSSHDODEOH³FROODWHUDORUGHU´ZKHUH
WKHGHIHQGDQWLVDSXEOLFRIILFLDODVVHUWLQJWKHGHIHQVHRI
TXDOLILHGLPPXQLW\DQG WKHLVVXHDSSHDOHGFRQFHUQVQRW
ZKLFKIDFWVWKHSDUWLHVPLJKWEHDEOHWRSURYHEXWUDWKHU

-- 3 of 4 --

:LOKHOPY%RJJVHWDO 1R
ZKHWKHU FHUWDLQ JLYHQ IDFWV UHIOHFW D YLRODWLRQ RI FOHDUO\
HVWDEOLVKHGODZ,G
/DWHU LQ -RQHV Y -RKQVRQ 86 WKH
6XSUHPH &RXUW IXUWKHU FODULILHG WKDW DSSHOODWH MXULVGLFWLRQ
RYHU GLVWULFW FRXUW GHQLDOV RI VXPPDU\ MXGJPHQW EDVHG RQ
TXDOLILHG LPPXQLW\ GRHV QRW DOZD\V OLH HPSKDVL]LQJ WKDW
DSSHOODWHMXULVGLFWLRQLVSURSHURQO\ZKHUHDGLVWULFWFRXUW¶V
TXDOLILHG LPPXQLW\ UXOLQJ LQYROYHV TXHVWLRQV RI ODZ 7KH
&RXUW KHOG LQ -RQHV WKDW EHFDXVH ³WKH RUGHU LQ TXHVWLRQ
UHVROYHG D IDFWUHODWHG GLVSXWH DERXW WKH SUHWULDO UHFRUG
QDPHO\ZKHWKHURUQRWWKHHYLGHQFHLQWKHSUHWULDOUHFRUGZDV
VXIILFLHQW WR VKRZ D JHQXLQH LVVXH RI IDFW IRU WULDO
GHIHQGDQWVFDQQRWLPPHGLDWHO\DSSHDOWKLVNLQGRIIDFWUHODWHG
GLVWULFWFRXUWGHWHUPLQDWLRQ´,GDW7KH&RXUWZHQWRQ
WR DGG WKDW ³WKH 'LVWULFW &RXUW¶V GHWHUPLQDWLRQ WKDW WKH
VXPPDU\MXGJPHQWUHFRUGLQ>WKH@FDVHUDLVHGDJHQXLQHLVVXH
RIIDFW´UHQGHUHGLQWHUORFXWRU\DSSHDOLQDSSURSULDWH,GDW

7KHVHFRQVLGHUDWLRQVQRWZLWKVWDQGLQJKRZHYHULWGRHVQRW
IROORZ WKDW WKH H[LVWHQFH RI DQ\ TXHVWLRQ RI IDFW UHQGHUV D
GHQLDO RI VXPPDU\ MXGJPHQW RQ WKH EDVLV RI TXDOLILHG
LPPXQLW\QRQDSSHDODEOH7KLVSULQFLSOHZDVPDGHFOHDULQ
%HKUHQVY3HOOHWLHU86 7KHUHWKH
6XSUHPH &RXUW QRWHG WKDW ³>G@HQLDO RI VXPPDU\ MXGJPHQW
RIWHQ LQFOXGHV D GHWHUPLQDWLRQ WKDW WKHUH DUH FRQWURYHUWHG
LVVXHVRIPDWHULDOIDFWDQG-RKQVRQVXUHO\GRHVQRWPHDQWKDW
HYHU\VXFKGHQLDORIVXPPDU\MXGJPHQWLVQRQDSSHDODEOH´
,GDW FLWDWLRQVRPLWWHG 7KH&RXUWZHQWRQWRPDNH
FOHDU WKDW ³-RKQVRQ UHDIILUPHG WKDW VXPPDU\ MXGJPHQW
GHWHUPLQDWLRQVDUHDSSHDODEOHZKHQWKH\UHVROYHDGLVSXWH
FRQFHUQLQJ DQ DEVWUDFW LVVXH RI ODZ UHODWLQJ WR TXDOLILHG
LPPXQLW\ W\SLFDOO\ WKH LVVXH ZKHWKHU WKH IHGHUDO ULJKW
DOOHJHGO\ LQIULQJHG ZDV FOHDUO\ HVWDEOLVKHG´ ,G DW
LQWHUQDOTXRWDWLRQVRPLWWHG
7KHSULQFLSOHWKDWDSSHOODWHMXULVGLFWLRQOLHVZKHQGLVWULFW
FRXUWGHQLDOVRIVXPPDU\MXGJPHQWRQWKHJURXQGRITXDOLILHG
LPPXQLW\WXUQRQ³DEVWUDFWTXHVWLRQVRIODZ´ZDVH[SODLQHG
1R :LOKHOPY%RJJVHWDO
LQJUHDWGHSWKE\DQHQEDQFSDQHORIWKLVFRXUWLQ:LOOLDPVY
0HKUD )G WK &LU HQ EDQF 7KHUH LQ
UHYHUVLQJWKHORZHUFRXUW¶VGHQLDORIVXPPDU\MXGJPHQWRQ
WKHEDVLVRITXDOLILHGLPPXQLW\WKLVFRXUWILUVWUHLWHUDWHGWKH
ZHOOVHWWOHGUXOHWKDWVXFKGHQLDOVRIVXPPDU\MXGJPHQWDUH
DSSHDODEOHVRORQJDV³WKHLVVXHRQDSSHDOLVQRWZKDWIDFWV
WKHSDUWLHVPD\EHDEOHWRSURYHEXWZKHWKHUWKHSODLQWLII¶V
IDFWV WDNHQ DW WKHLU EHVW VKRZ D YLRODWLRQ RI FOHDUO\
HVWDEOLVKHGODZ´,GDW FLWLQJ-RKQVRQY-RQHV
86 HPSKDVLVDGGHG 7KHFRXUWQRWHGWKDW
³UHJDUGOHVV RI WKH GLVWULFW FRXUW¶V UHDVRQV IRU GHQ\LQJ
TXDOLILHGLPPXQLW\ZHPD\H[HUFLVHMXULVGLFWLRQRYHUWKH
DSSHDOWRWKHH[WHQWLWUDLVHVTXHVWLRQVRIODZ´,GDW
TXRWLQJ'LFNHUVRQY0F&OHOODQ)G WK
&LU HPSKDVLVDGGHG
$SSO\LQJ WKHVH SULQFLSOHV WR WKH LQVWDQW FDVH DSSHOODWH
MXULVGLFWLRQ H[LVWV $OWKRXJK WKHUH UHPDLQ FRQWURYHUWHG
TXHVWLRQVRIIDFWWKHVHIDFWVDUHH[WUDQHRXVDQGLUUHOHYDQWWR
WKHTXDOLILHGLPPXQLW\TXHVWLRQ)XQGDPHQWDOO\WKHUHLVQR
GLVSXWHDVWRWKHWURLNDRIFULWLFDOIDFWVVHUYLQJDVWKHEDVLVIRU
GHIHQGDQWV¶DVVHUWLRQRITXDOLILHGLPPXQLW\7KRVHIDFWVDUH
WKH KRPH DW &UXP 5RDG ZDV SDUW RI &KDUOHV
:LOKHOP¶V HVWDWH 6KHUO )RVWHU ZDV DGPLQLVWUDWUL[ RI
&KDUOHV :LOKHOP¶V HVWDWH DQG 6KHUO )RVWHU QRW RQO\
FRQVHQWHGWREXWLQIDFWUHTXHVWHGGHIHQGDQWV¶HQWUDQFHWRWKH
KRPH7KHVHWKUHHIDFWVFRQVLGHUHGWRJHWKHUVKDSHWKHOHJDO
LVVXHQRWFRQVLGHUHGE\WKHGLVWULFWFRXUWEXWQRZVTXDUHO\
EHIRUHWKLVSDQHO,V6KHUO)RVWHU¶VFRQVHQWWR UHDOO\UHTXHVW
IRU GHIHQGDQWV¶HQWUDQFHWREHFRQVLGHUHGYDOLGWKLUGSDUW\
FRQVHQWVXFKWKDWSODLQWLIIKDVDVDPDWWHURIODZIDLOHGWR
VWDWHDYLRODWLRQRIFOHDUO\HVWDEOLVKHGODZ",IVRGHIHQGDQWV
DUHHQWLWOHGWRTXDOLILHGLPPXQLW\DQGWKHGLVWULFWFRXUWHUUHG
LQGHQ\LQJGHIHQGDQWV¶PRWLRQIRUVXPPDU\MXGJPHQW
,,,$QDO\VLV
7KH8QLWHG6WDWHV6XSUHPH&RXUWUHDIILUPHGWKHSULQFLSOH
RI WKLUGSDUW\ FRQVHQW WR )RXUWK $PHQGPHQW VHDUFKHV DQG
VHL]XUHVLQ8QLWHG6WDWHVY0DWORFN86

-- 4 of 4 --

Continue your research in ChatGPT or Claude

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