Schmitz v. 4-TB, Inc. et al

,17+(81,7('67$7(6',675,&7&2857 
)257+(',675,&72)1257+'$.27$
-HURPH6FKPLW]
3ODLQWLII 	25'(5)2558/( I 3/$11,1*
0((7,1*$1'58/( E
YV 	6&+('8/,1*&21)(5(1&(
$1'25'(55(5(62/87,21
2)',6&29(5<',6387(6
7%,QFDQG1HOVRQ&HQWHQR
&DVH1RFY
'HIHQGDQWV 	
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
,7,625'(5('
58/( I 0((7,1* 	58/( E 6&+('8/,1*&21)(5(1&(
7KHFRXUWVKDOOKROGD5XOH E LQLWLDOSUHWULDOVFKHGXOLQJGLVFRYHU\FRQIHUHQFHRQ$SULO
DWDP7KHVFKHGXOLQJFRQIHUHQFHZLOOKHOGE\WHOHSKRQHFRQIHUHQFHFDOOWREH
LQLWLDWHGE\WKHFRXUW
,QSUHSDUDWLRQIRUWKHFRQIHUHQFHFRXQVHODUHGLUHFWHGWRFRQIHULQDFFRUGDQFHZLWK5XOH
 I RIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH&RXQVHOVKDOOVXEPLWWRWKHPDJLVWUDWHMXGJHDMRLQW
SURSRVHGVFKHGXOLQJGLVFRYHU\SODQWKDWUHIOHFWVWKH5XOH I GLVFXVVLRQVDQGLQFOXGHVDWOHDVW
WKRVH LWHPV OLVWHG LQ IRUP 6FKHGXOLQJ'LVFRYHU\ 3ODQ SRVWHG RQ WKH FRXUW V ZHEVLWH
ZZZQGGXVFRXUWVJRYIRUPV &RXQVHOVKDOOFRQIHUFRPSOHWHDQGSUHSDUHWKHIRUPREWDLQWKH
DSSURSULDWHVLJQDWXUHVDQGHPDLOWKHGRFXPHQWLQ:RUG3HUIHFWRULQ:RUGIRUPDWWRQGGB-
+RFKKDOWHU#QGGXVFRXUWVJRY12/$7(57+$17:2%86,1(66'$<635,25727+(
&21)(5(1&(  $Q\ GLVDJUHHPHQWV DPRQJ FRXQVHO VKDOO EH DGGUHVVHG DW WKH VFKHGXOLQJ
FRQIHUHQFH
'XULQJWKH5XOH I PHHWLQJFRXQVHOVKDOOGLVFXVVWKHQDWXUHDQGEDVLVRIWKHLUFODLPVDQG
Case 1:19-cv-00016-DLH-CRH Document 8 Filed 03/01/19 Page 1 of 4

GHIHQVHVWKHSRVVLELOLWLHVIRUDSURPSWVHWWOHPHQWRUUHVROXWLRQRIWKHFDVHDQGWKHVFRSHDQGW\SH
RIGLVFRYHU\LQFOXGLQJHOHFWURQLFGLVFRYHU\&RXQVHOVKDOODOVRPDNHRUDUUDQJHIRUWKHGLVFORVXUHV
UHTXLUHGE\5XOH D 	 DQGGHYHORSWKHLUMRLQWSURSRVHGVFKHGXOLQJGLVFRYHU\SODQ7KHVHDUH
RQO\WKHPLQLPXPUHTXLUHPHQWVIRUWKHPHHWLQJ&RXQVHODUHHQFRXUDJHGWRKDYHDFRPSUHKHQVLYH
GLVFXVVLRQDQGDUHUHTXLUHGWRDSSURDFKWKHPHHWLQJFRRSHUDWLYHO\DQGLQJRRGIDLWK7KHGLVFXVVLRQ
RIFODLPVDQGGHIHQVHVVKDOOEHDVXEVWDQWLYHPHDQLQJIXOGLVFXVVLRQ,QDGGUHVVLQJVHWWOHPHQWRU
HDUO\UHVROXWLRQRIWKHFDVHFRXQVHODUHUHTXLUHGWRH[SORUHWKHIHDVLELOLW\RI$'5QRWRQO\EHWZHHQ
WKHPVHOYHVEXWZLWKWKHLUFOLHQWVDVZHOO,IWKHSDUWLHVHOHFWQRWWRSDUWLFLSDWHLQDQHDUO\$'5
HIIRUWWKHFRXUWPD\QRQHWKHOHVVUHTXLUHDVHWWOHPHQWFRQIHUHQFHVKRUWO\EHIRUHWULDO
,QDGGUHVVLQJWKH5XOH D 	 GLVFORVXUHVFRXQVHOVKDOOGLVFXVVWKHDSSURSULDWHWLPLQJ
IRUPVFRSHRUUHTXLUHPHQWRIWKHLQLWLDOGLVFORVXUHVNHHSLQJLQPLQGWKDW5XOH D 	 
FRQWHPSODWHVWKHGLVFORVXUHVZLOOEHPDGHE\WKHGDWHRIWKH5XOH E LQLWLDOVFKHGXOLQJFRQIHUHQFH
DQGZLOOLQFOXGHDWOHDVWWKHFDWHJRULHVRILQIRUPDWLRQOLVWHGLQWKHUXOH5XOHDIIRUGVWKHSDUWLHV
IOH[LELOLW\LQWKHVFRSHIRUPDQGWLPLQJRIGLVFORVXUHVXQGHUERWK5XOH D 	  LQLWLDOGLVFORVXUHV 
DQG5XOH D 	  H[SHUWZLWQHVVGLVFORVXUHV EXWWKHSDUWLHV¶DJUHHPHQWRQGLVFORVXUHVLVVXEMHFW
WRDSSURYDOE\WKHFRXUW,QWKHLUGLVFXVVLRQRIGLVFORVXUHVFRXQVHOVKDOODGGUHVVLVVXHVRIUHOHYDQFH
LQGHWDLOZLWKHDFKSDUW\LGHQWLI\LQJZKDWLWQHHGVDQGZK\7KHGLVFXVVLRQVKDOOLQFOXGHDVZHOO
WKHVHTXHQFHDQGWLPLQJRIIROORZXSGLVFRYHU\LQFOXGLQJZKHWKHUWKDWGLVFRYHU\VKRXOGEH
FRQGXFWHGLQIRUPDOO\RUIRUPDOO\DQGZKHWKHULWVKRXOGEHFRQGXFWHGLQSKDVHVWRSUHSDUHIRUILOLQJ
RISDUWLFXODUPRWLRQVRUIRUVHWWOHPHQWGLVFXVVLRQV
,QDGGUHVVLQJHOHFWURQLFGLVFRYHU\FRXQVHOVKDOOGLVFXVVZKDWHOHFWURQLFVRXUFHVHDFKSDUW\
ZLOOVHDUFKGLIILFXOW\RIUHWULHYDOSUHVHUYDWLRQRIUHFRUGVWKHIRUPRISURGXFWLRQ HOHFWURQLFRU
KDUGFRS\IRUPDWRISURGXFWLRQLQFOXVLRQRIPHWDGDWDHWF FRVWRISURGXFWLRQDQGZKLFKSDUW\
Case 1:19-cv-00016-DLH-CRH Document 8 Filed 03/01/19 Page 2 of 4

 	7KHSDUWLHVDUHVWURQJO\HQFRXUDJHGWRLQIRUPDOO\UHVROYHDOOGLVFRYHU\LVVXHVDQG
GLVSXWHVZLWKRXWWKHQHFHVVLW\RI&RXUWLQWHUYHQWLRQ,QWKDWUHJDUGWKHSDUWLHVDUH
ILUVWUHTXLUHGWRFRQIHUDQGIXOO\FRPSO\ZLWK5XOH D 	 RIWKH)HGHUDO5XOHVRI
&LYLO3URFHGXUHDQG/RFDO5XOHE\XQGHUWDNLQJDVLQFHUHJRRGIDLWKHIIRUWWR
WU\WRUHVROYHDOOGLIIHUHQFHVZLWKRXW&RXUWDFWLRQRULQWHUYHQWLRQ
 	,QWKHHYHQWWKDWUHDVRQDEOHJRRGIDLWKHIIRUWVKDYHEHHQPDGHE\DOOSDUWLHVWR
FRQIHUDQGDWWHPSWWRUHVROYHDQ\GLIIHUHQFHVZLWKRXWVXFFHVVWKHSDUWLHVDUHWKHQ
ZLOOEHDUWKHFRVWSULYLOHJHZDLYHULVVXHVDQGDQ\RWKHUHOHFWURQLFGLVFRYHU\LVVXHVSUHVHQWLQWKH
FDVH%HIRUHHQJDJLQJLQWKH5XOHGLVFXVVLRQFRXQVHOVKRXOGGHWHUPLQHZKRLVPRVWIDPLOLDU
ZLWKWKHFOLHQW VFRPSXWHUV\VWHPZKDWHOHFWURQLFUHFRUGVWKHFOLHQWPDLQWDLQVKRZWKHFOLHQW V
HOHFWURQLFUHFRUGVDUHVWRUHGWKHGLIILFXOW\HDVHRIUHWULHYLQJYDULRXVUHFRUGVWKHH[LVWHQFHDQG
WHUPVRIWKHFOLHQW VGRFXPHQWUHWHQWLRQGHVWUXFWLRQSROLF\DQGZKHWKHUWKHFOLHQWKDVSODFHGD
OLWLJDWLRQKROGSUHYHQWLQJGHVWUXFWLRQRISRWHQWLDOO\UHOHYDQWUHFRUGV
7KHGHDGOLQHVLQWKHVFKHGXOLQJGLVFRYHU\SODQVKDOOEHPXWXDOO\DJUHHDEOHZLWKDYLHZWR
DFKLHYLQJUHVROXWLRQRIWKHFDVHZLWKDPLQLPXPRIH[SHQVHDQGGHOD$WWKH5XOH E
FRQIHUHQFHWKHFRXUWZLOOUHYLHZWKHSODQZLWKFRXQVHO7KHGDWHIRUWKHGLVSRVLWLYHPRWLRQGHDGOLQH
VKDOOQRWEHODWHUWKDQ$SULOXQOHVVJRRGFDXVHLVVKRZQDWWKHVFKHGXOLQJFRQIHUHQFHIRU
DODWHUGDWH&RXQVHODUHLQIRUPHGWKDWWKHGLVSRVLWLYHPRWLRQGHDGOLQHLVXVHGLQDVVLJQLQJWKHWULDO
GDWH DQG WKH FRXUW PXVW DOORZ DGHTXDWH WLPH IRU EULHILQJ DQG UXOLQJ SULRU WRWKHILQDOSUHWULDO
FRQIHUHQFHDQGWULDOGDWHV
5(62/87,212)',6&29(5<',6387(6
,WLVKHUHE\25'(5('WKDWWKHIROORZLQJVWHSVEHXQGHUWDNHQE\DOOSDUWLHVSULRUWRWKH
ILOLQJRIDQ\GLVFRYHU\PRWLRQV
Case 1:19-cv-00016-DLH-CRH Document 8 Filed 03/01/19 Page 3 of 4

UHTXLUHGWRVFKHGXOHDWHOHSKRQLFFRQIHUHQFHZLWKWKH0DJLVWUDWH-XGJHLQDQHIIRUW
WRWU\WRUHVROYHWKHGLVFRYHU\GLVSXWHSULRUWRWKHILOLQJRIDQ\PRWLRQV7KHSDUWLHV
VKDOO H[KDXVW WKH ILUVW WZR VWHSV RI WKH SURFHVV EHIRUH DQ\ PRWLRQV EULHIV
PHPRUDQGXPV RI ODZ H[KLELWV GHSRVLWLRQ WUDQVFULSWV RU DQ\ RWKHU GLVFRYHU\
PDWHULDOVDUHILOHGZLWKWKH&RXUW
 	,IWKHGLVSXWHVWLOOFDQQRWEHUHVROYHGIROORZLQJDWHOHSKRQLFFRQIHUHQFHZLWKWKH
0DJLVWUDWH -XGJH WKHQ WKH &RXUW 0DJLVWUDWH -XGJH  ZLOO HQWHUWDLQ D PRWLRQ WR
FRPSHO GLVFRYHU\ PRWLRQ IRU VDQFWLRQV PRWLRQ IRU SURWHFWLYH RUGHU RU RWKHU
GLVFRYHU\PRWLRQV,QFRQQHFWLRQZLWKWKHILOLQJRIDQ\VXFKPRWLRQVWKHPRYLQJ
SDUW\VKDOOILUVWIXOO\FRPSO\ZLWKDOOUHTXLUHPHQWVRI5XOH D 	  RIWKH)HGHUDO
5XOHV RI &LYLO 3URFHGXUH DQG /RFDO 5XOH  DQG VKDOO VXEPLW WKH DSSURSULDWH
FHUWLILFDWLRQVWRWKH&RXUWDVUHTXLUHGE\WKRVHUXOHV
 	7KH&RXUWZLOOUHIXVHWRKHDUDQ\GLVFRYHU\PRWLRQXQOHVVWKHSDUWLHVKDYHPDGHD
VLQFHUHJRRGIDLWKHIIRUWWRUHVROYHWKHGLVSXWHDQGDOORIWKHDERYHLGHQWLILHGVWHSV
KDYH EHHQ VWULFWO\ FRPSOLHG ZLWK  $ IDLOXUH WR IXOO\ FRPSO\ ZLWK DOO RI WKH
SUHUHTXLVLWHVWHSVPD\UHVXOWLQDGHQLDORIDQ\PRWLRQZLWKSUHMXGLFHDQGPD\UHVXOW
LQDQDZDUGRIFRVWVDQGUHDVRQDEOHDWWRUQH\¶VIHHV
'DWHGWKLVVWGD\RI0DUFK
/s/ Clare R. Hochhalter
&ODUH5+RFKKDOWHU0DJLVWUDWH-XGJH
8QLWHG6WDWHV'LVWULFW&RXUW
Case 1:19-cv-00016-DLH-CRH Document 8 Filed 03/01/19 Page 4 of 4