Rockwell v. Yukins

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  5RFNZHOOYD@VZHUHFRJQL]HGLQ $IWHUH[FXVLQJ5RFNZHOOjVIDLOXUHWRH[KDXVWKHUWKLUGFODLP )ULVELHWKHFDVHVLQZKLFKWKHQRQH[KDXVWLRQGHIHQVHLVQRW WKH GLVWULFW FRXUW JUDQWHG WKH SHWLWLRQ EDVHG RQ DUJXPHQWV DVVHUWHGLQWKHGLVWULFWFRXUW PD\SUHVHQWDZLGHYDULHW\RI SURIIHUHGLQRQHRIWKHH[KDXVWHGFODLPV)RUWKHUHDVRQVVHW FLUFXPVWDQFHV ZKLFK WKH FRXUWV RI DSSHDOV    DUH DEOH WR IRUWKEHORZZH9$&$7(WKHMXGJPHQWRIWKHGLVWULFWFRXUW HYDOXDWHLQGLYLGXDOO\l*UDQEHUU\86DW DQG5(0$1'IRUIXUWKHUSURFHHGLQJVFRQVLVWHQWZLWKWKLV RSLQLRQ ,QWKHSUHVHQWFDVHERWKWKHSDUWLHVDQGWKHGLVWULFWFRXUW ZHUH DZDUH RI WKH PL[HG QDWXUH RI 5RFNZHOOjV DPHQGHG ,%$&.*5281' SHWLWLRQ7RDOORZDGLVWULFWFRXUWVTXDUHO\SUHVHQWHGZLWKWKH H[KDXVWLRQLVVXHWRJUDQWDSHWLWLRQHUjVFODLPRQWKHPHULWV 5RFNZHOOOLYHGZLWKKHUKXVEDQG(GZDUG5RFNZHOODQG DQGWKHQUDWLRQDOL]HLWVGHFLVLRQDIWHUWKHIDFWRQWKHJURXQGV WKHLUVRQV+DO.HYLQDQG7HGG\LQ2[IRUG0LFKLJDQ,Q WKDWLWKDGDOUHDG\FRQGXFWHGDIXOOUHYLHZZRXOGYLWLDWHWKH +DODQGWZRRIKLVIULHQGVsHIIUH\*UHHQHDQG0DULR H[KDXVWLRQUHTXLUHPHQW 6WLWWPDGHWZRXQVXFFHVVIXODWWHPSWVRQ(GZDUGjVOLIH2QH DWWHPSWLQYROYHGFXWWLQJWKHEUDNHOLQHVRQKLVFDUDQGWKH $OWKRXJK ZH DUH V\PSDWKHWLF ZLWK 5RFNZHOOjV FXUUHQW RWKHU FRQVLVWHG RI VWULNLQJ KLP WZLFH RQ WKH KHDG ZLWK D SRVLWLRQDQGZLWKWKHGHOD\VWKDWVKHKDVHQGXUHGZHFDQQRW EDVHEDOO EDW ZKLOH KH ZDV ZDWFKLQJ WHOHYLVLRQ DW KRPH FRQFOXGH WKDW WKH FXUUHQW FDVH SUHVHQWV VXFK H[FHSWLRQDO 5RFNZHOO ZDV QRW SUHVHQW GXULQJ HLWKHU RI WKHVH DWWHPSWV IDFWRUV DV WR ZDUUDQW H[FXVLQJ KHU IDLOXUH WR H[KDXVW 7KH6WDWHRI0LFKLJDQFKDUJHG+DOZLWKDWWHPSWHGPXUGHU m([WHQGLQJ*UDQEHUU\EH\RQGWKHµH[FHSWLRQDOjRUµXQXVXDOj DQG5RFNZHOOZLWKFRQVSLUDF\WRFRPPLWPXUGHU FDVH XQGHUPLQHV WKH ODZjV FOHDU SUHIHUHQFH IRU KDYLQJ XQH[KDXVWHG FODLPV GHFLGHG LQ VWDWH FRXUWl  2j*XLQQ Y 7KH SURVHFXWLRQjV FDVH DJDLQVW 5RFNZHOO UHOLHG XSRQ 'XWWRQ)G WK&LU  VHYHUDOGLVFXVVLRQVWKDWVKHKDGKDGZLWKKHUVRQVFRQFHUQLQJ  5RFNZHOOYL@W DEXVHLWVGLVFUHWLRQLQH[FOXGLQJLW5RFNZHOOjVDSSOLFDWLRQ ZRXOGZRUNDPDQLIHVWLQMXVWLFHRQ>5RFNZHOO@IRUWKLV&RXUW IRU OHDYH WR DSSHDO WR WKH 0LFKLJDQ 6XSUHPH &RXUW ZDV QRZWRWHOO>KHU@WKDWVKHPXVWUHWXUQWRVWDWHFRXUWWRILOHD GHQLHG PRWLRQWRYDFDWHMXGJPHQWlZKHQVHYHQWHHQPRQWKVHDUOLHU LW KDG H[FXVHG WKH ODFN RI H[KDXVWLRQ DQG DOORZHG KHU WR 2Q0DUFK5RFNZHOOILOHGDSHWLWLRQIRUDZULWRI DPHQG KDEHDVFRUSXVSXUVXDQWWR86&†6KHUDLVHGWZR LVVXHVLQWKHSHWLWLRQRQHFKDOOHQJLQJWKHVXIILFLHQF\RIWKH )DFHG ZLWK 5RFNZHOOjV PRWLRQ WR DPHQG WKH RSWLPDO HYLGHQFHVXSSRUWLQJKHUFRQYLFWLRQDQGWKHRWKHUREMHFWLQJWR FRXUVHRIDFWLRQIRUWKHGLVWULFWFRXUWZRXOGKDYHEHHQWRGHQ\ WKHUXOLQJRIWKHVWDWHWULDOFRXUWWKDWKDGH[FOXGHGHYLGHQFHRI WKH PRWLRQ WKXV JLYLQJ 5RFNZHOO WKH RSWLRQ RI HLWKHU (GZDUG5RFNZHOOjVVH[XDODEXVHRIWKHLUVRQV%RWKRIWKHVH SURFHHGLQJZLWKKHUWZRH[KDXVWHGFODLPVRUZLWKGUDZLQJKHU LVVXHVKDGEHHQH[KDXVWHGLQWKH0LFKLJDQFRXUWV SHWLWLRQDQGSXUVXLQJKHUWKLUGFODLPLQVWDWHFRXUW&I5RVH  86 DW  KDYLQJ GLVPLVVHG WKH KDEHDV SHWLWLRQ IRU 2QsXQH  KRZHYHU5RFNZHOOILOHGDPRWLRQWR IDLOXUHWRH[KDXVWWKHFRXUWOHIWWKHSHWLWLRQHUZLWKmWKHFKRLFH DPHQGKHUSHWLWLRQWRLQFOXGHDVDWKLUGLVVXHDFKDOOHQJHWR RI UHWXUQLQJ WR VWDWH FRXUW WR H[KDXVW KLV FODLPV RU RI WKHMXU\LQVWUXFWLRQVJLYHQE\WKHWULDOFRXUW5RFNZHOOKDG DPHQGLQJRUUHVXEPLWWLQJWKHKDEHDVSHWLWLRQWRSUHVHQWRQO\ QRWSUHYLRXVO\UDLVHGWKLVFKDOOHQJHLQWKH0LFKLJDQFRXUWV H[KDXVWHG FODLPV WR WKH GLVWULFW FRXUWl   %XW 5RFNZHOO LV 7KH VWDWH GLG QRW REMHFW WR WKH PRWLRQ KRZHYHU DQG WKH XOWLPDWHO\WKHRQHUHVSRQVLEOHIRUWKHVWDWXVRIKHUSHWLWLRQ GLVWULFW FRXUW DOORZHG 5RFNZHOO WR DPHQG KHU SHWLWLRQ WR QRW WKH GLVWULFW FRXUW  +DYLQJ NQRZLQJO\ DGGHG DQ LQFOXGHWKLVWKLUGFODLP XQH[KDXVWHGFODLPWRKHUSHWLWLRQ5RFNZHOOFDQQRWQRZOD\ WKHEODPHDWWKHIHHWRIWKHGLVWULFWFRXUW 2Q0DUFKWKHGLVWULFWFRXUWJUDQWHG5RFNZHOOjV SHWLWLRQ7KHGHFLVLRQZDVEDVHGRQ5RFNZHOOjVFODLPWKDW $V WKH m>P@RVW LPSRUWDQWl MXVWLILFDWLRQ IRU H[FXVLQJ KHU GXH SURFHVV ULJKW WR SUHVHQW D FRPSOHWH GHIHQVH ZDV 5RFNZHOOjVIDLOXUHWRH[KDXVWDOORIKHUFODLPVWKHGLVWULFW YLRODWHG E\ WKH WULDO FRXUWjV H[FOXVLRQ RI WKH HYLGHQFH RI FRXUWVWDWHGWKDWmXQXVXDODQGH[FHSWLRQDOFLUFXPVWDQFHVH[LVW DEXVH  ,W QRWHG WKDW WKH H[KDXVWLRQ UHTXLUHPHQW LV QRW MXULVGLFWLRQDODQGPD\EHH[FXVHGLQFHUWDLQLQVWDQFHV)RU  5RFNZHOOY5RFNZHOOjV@KDEHDV SHWLWLRQXQGHUWKHWRWDOH[KDXVWLRQUXOHEHFDXVHKHUFODLPVDUH 7KH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FWRI PHULWOHVVl7KHGLVWULFWFRXUWGLGQRWYLHZWKLVVWDWHPHQWDV $('3$ FRGLILHGWKHUHTXLUHPHQWWKDWDQDSSOLFDQWIRUDZULW DZDLYHUDQGQHLWKHUGRZH,QFRQWH[WWKLVVWDWHPHQWVLPSO\ RIKDEHDVFRUSXVILUVWH[KDXVWKHUFODLPVLQVWDWHFRXUWEHIRUH IXQFWLRQVDVDWUDQVLWLRQEHWZHHQWKHVWDWHjVWZRDOWHUQDWLYH SUHVHQWLQJWKHPWRIHGHUDOFRXUW6HH86&† E  DUJXPHQWVnQDPHO\WKDW5RFNZHOOjVFODLPZDVQRWH[KDXVWHG 8QGHU WKLV UHTXLUHPHQW DQ DSSOLFDQW PD\ QRW SUHVHQW D DQGLQDQ\HYHQWWKDWWKHFODLPZDVPHULWOHVVDQGWKHUHIRUH mPL[HGlSHWLWLRQFRQWDLQLQJERWKH[KDXVWHGDQGXQH[KDXVWHG RXJKW WR EH GLVPLVVHG RQ WKH PHULWV SXUVXDQW WR  E  FODLPVWRDIHGHUDOFRXUW6HH5RVHY/XQG\86 ZKHWKHULWZDVH[KDXVWHGRUQRW   2j*XLQQY'XWWRQ)G WK &LU $OWKRXJKWKLVUHTXLUHPHQWLVQRWMXULVGLFWLRQDOD 7KH GLVWULFW FRXUW RIIHUHG VHYHUDO MXVWLILFDWLRQV IRU LWV SHWLWLRQWKDWLQFOXGHVXQH[KDXVWHGFODLPVZLOORUGLQDULO\QRW GHFLVLRQWRH[FXVHWKHPL[HGQDWXUHRI5RFNZHOOjVSHWLWLRQ EH FRQVLGHUHG E\ D IHGHUDO FRXUW DEVHQW mXQXVXDOl RU QRQHRIZKLFKZHILQGSHUVXDVLYH)LUVWEHFDXVHWKHGLVWULFW mH[FHSWLRQDOlFLUFXPVWDQFHV6HH2j*XLQQ)GDW FRXUWLQWHQGHGWRJUDQW5RFNZHOOjVSHWLWLRQRQWKHJURXQGVRI FLWLQJ*UDQEHUU\Y*UHHU86   DQ HYLGHQWLDU\ FODLP WKDW KDG EHHQ SURSHUO\ H[KDXVWHG LW IRXQGWKDWLWZRXOGQRWQHHGWRUHDFKWKHPHULWVRI5RFNZHOOjV 6XFK FLUFXPVWDQFHV DUH QRW SUHVHQW LQ WKLV FDVH  ,Q XQH[KDXVWHGFODLPm7KH&RXUWZLOOWKHUHIRUHQRWLQWHUIHUH *UDQEHUU\WKHFDVHLQZKLFKWKH6XSUHPH&RXUWVHWRXWWKH ZLWK D VWDWH FRXUWjV RSSRUWXQLW\ WR UHYLHZ WKH XQH[KDXVWHG SDUDPHWHUVRIWKHH[FHSWLRQWRWKHH[KDXVWLRQUHTXLUHPHQW FODLP LQ WKH ILUVW LQVWDQFHl  $OWKRXJK WKLV UHDVRQLQJ KDV WKHVWDWHKDGZDLYHGWKHGHIHQVHRIQRQH[KDXVWLRQEHIRUHWKH XQGHQLDEOHDSSHDOLWFDQQRWEHUHFRQFLOHGZLWKWKH6XSUHPH GLVWULFWFRXUW,WZDVLQWKLVFRQWH[WWKDWWKH&RXUWSUHVFULEHG &RXUWjVGHFLVLRQLQ5RVHY/XQG\86   D mPLGGOH FRXUVHl KROGLQJ WKDW mWKH DSSHOODWH FRXUW LV QRW RUZLWKWKHFOHDUWH[WRI$('3$,QKROGLQJWKDWDGLVWULFW UHTXLUHG WR GLVPLVV IRU QRQH[KDXVWLRQ QRWZLWKVWDQGLQJ WKH FRXUW PD\ QRW UHYLHZ PL[HG SHWLWLRQV WKH &RXUW VHQW DQ 6WDWHjV IDLOXUH WR UDLVH LW DQG WKH FRXUW LV QRW REOLJDWHG WR XQPLVWDNDEO\ FOHDU PHVVDJH WR SHWLWLRQHUV  m>%@HIRUH \RX UHJDUG WKH 6WDWHjV RPLVVLRQ DV DQ DEVROXWH ZDLYHU RI WKH EULQJDQ\FODLPVWRIHGHUDOFRXUWEHVXUHWKDW\RXILUVWKDYH FODLPl,GDW,QVWHDGWKH&RXUWLQVWUXFWHGDSSHOODWH WDNHQHDFKRQHWRVWDWHFRXUWl,GDW7KH&RXUWFRXOG FRXUWV WR mWDNH D IUHVK ORRN DW WKH LVVXHl DQG mGHWHUPLQH KDYH EXW GLG QRW KROG WKDW D GLVWULFW FRXUW PD\ FRQVLGHU ZKHWKHUWKHLQWHUHVWVRIFRPLW\DQGIHGHUDOLVPZLOOEHEHWWHU PL[HGSHWLWLRQVVRORQJDVLWOLPLWVLWVUHYLHZWRWKHH[KDXVWHG VHUYHGE\DGGUHVVLQJWKHPHULWVIRUWKZLWKRUE\UHTXLULQJD