Burroughs v. Makowski

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 *(2))5(< %85528*+6 ; 3HWLWLRQHU$SSHOOHH    1R Y  !  s2+1 0$.2:6.,  5HVSRQGHQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1RnsRKQ&RUEHWW2j0HDUD'LVWULFWsXGJH $UJXHGsXQH 'HFLGHGDQG)LOHG)HEUXDU\ %HIRUH.(,7+6,/(5DQG&/$<&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8('sHUUROG(6FKURWHQERHUs$&.621&2817< 3526(&8725j6 2)),&( sDFNVRQ 0LFKLJDQ IRU $SSHOODQWsDPHV.URJVUXG'HWURLW0LFKLJDQIRU$SSHOOHH 21%5,()sHUUROG(6FKURWHQERHUs$&.621&2817< 3526(&8725j6 2)),&( sDFNVRQ 0LFKLJDQ IRU $SSHOODQWsDPHV.URJVUXG'HWURLW0LFKLJDQIRU$SSHOOHH   %XUURXJKVY0DNRZVNL 1R BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 6,/(5&LUFXLWsXGJHsRKQ0DNRZVNLIRUPHUZDUGHQRI WKH0LFKLJDQ7UDLQLQJ8QLWLQ,RQLD0LFKLJDQDSSHDOVWKH GLVWULFW FRXUWjV JUDQW RI *HRIIUH\ %XUURXJKVjV SHWLWLRQ IRU KDEHDVUHOLHIXQGHU86&†,QRSSRVLQJWKHKDEHDV JUDQW 0DNRZVNL DUJXHV WKDW DOO RI %XUURXJKVjV FODLPV DUH SURFHGXUDOO\GHIDXOWHG:H5(9(56(WKHGLVWULFWFRXUWjV LVVXDQFHRIDZULWRIKDEHDVFRUSXVDQGLWVRUGHUGLUHFWLQJWKH 6WDWHWRYDFDWHSHWLWLRQHUjVFRQYLFWLRQIRUIHORQ\PXUGHUDV %XUURXJKVjVFODLPVDUHSURFHGXUDOO\GHIDXOWHG ,%$&.*5281' %XUURXJKVDQGFRGHIHQGDQW9LUJLO*UHHQZHUHDUUHVWHG IRUUREELQJD0LQL0DUWDQGNLOOLQJDVWRUHHPSOR\HHsLPP\ 0HQWLQN%HIRUHWULDO*UHHQHQWHUHGDQXQVZRUQJXLOW\SOHD WR FKDUJHV RI VHFRQG GHJUHH PXUGHU DQG SRVVHVVLRQ RI D ILUHDUPLQWKHFRPPLVVLRQRIPXUGHUVWDWLQJWKDWKHZHQWLQWR WKHVWRUHDORQHZLWKDVHPLDXWRPDWLFULIOHUREEHGLWDQGVKRW 0HQWLQNEHFDXVHKHGLGQRWZDQWWREHLGHQWLILHG$IWHUDMXU\ WULDO %XUURXJKV ZDV FRQYLFWHG RI IHORQ\ PXUGHU 0&/ †VHFRQGGHJUHHPXUGHU0&/†DUPHG UREEHU\ 0&/ †  DQG IHORQ\ ILUHDUP FKDUJHV 0&/†E $IWHUWKHMXU\UHWXUQHGLWVYHUGLFWWULDOFRXQVHOPRYHGIRU DsXGJPHQW129RQWKHIHORQ\PXUGHUFRQYLFWLRQEDVHGRQ LQVXIILFLHQWHYLGHQFHDQGWKHFRXUWJUDQWHGLW%XUURXJKVWKHQ SOHGJXLOW\WREHLQJDKDELWXDOIHORQ%HIRUHVHQWHQFLQJWULDO FRXQVHOILOHGDVHFRQGsXGJPHQW129RQWKHVHFRQGGHJUHH PXUGHU FRQYLFWLRQ ZKLFK WKH FRXUW DOVR JUDQWHG EDVHG RQ LQVXIILFLHQWHYLGHQFH7KHFRXUWWKHQVHQWHQFHG%XUURXJKVWR  0DNRZVNL ZDV %XUURXJKVjV ZDUGHQ ZKHQ KH ILOHG WKH KDEHDV SHWLWLRQ  %XUURXJKVY0DNRZVNL 1R 1R %XUURXJKVY0DNRZVNL  MXGJPHQW WKH 0LFKLJDQ &RXUW RI $SSHDOV DQG 0LFKLJDQ WZR\HDUVIRUWKHIHORQ\ILUHDUPFRQYLFWLRQDQGWHQWRWZHQW\ 6XSUHPH&RXUWVWDWHGWKDWKHIDLOHGmWRHVWDEOLVKHQWLWOHPHQW \HDUVIRUDUPHGUREEHU\ WRUHOLHIXQGHU0&5 ' l0DNRZVNLFRUUHFWO\DUJXHV WKDWWKHVWDWHDSSHOODWHFRXUWVjUHIHUHQFHWR0&5 ' 2Q GLUHFW DSSHDO E\ ERWK SDUWLHV WKH 0LFKLJDQ &RXUW RI GHQLHG SHWLWLRQHUj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mIDLOHGWRPHHWWKHEXUGHQRIHVWDEOLVKLQJHQWLWOHPHQWWRUHOLHI RIWKHGRXEOHMHRSDUG\SUREOHPKRZHYHUWKHFRXUWRIDSSHDOV XQGHU0&5 ' l)GDW7KRXJKWKHUXOLQJ YDFDWHG WKH VHFRQGGHJUHH PXUGHU DUPHG UREEHU\ DQG ZDVEULHIDQGGLGQRWH[SOLFLWO\UHIHUHQFH0&5 '   KDELWXDOVHFRQGFRQYLFWLRQVDQGUHPDQGHGIRUVHQWHQFLQJRQ ZHGHWHUPLQHGWKDWWKH0LFKLJDQ6XSUHPH&RXUWjVVWDWHPHQW WKHIHORQ\PXUGHUDQGIHORQ\ILUHDUPFKDUJHV H[SODLQHGLWVRUGHU6HHLG$VmWKHODVWVWDWHFRXUWUHQGHULQJ MXGJPHQW LQ WKH FDVH LWV GHFLVLRQ GHQ\LQJ >GHIHQGDQWjV@ 3ULRUWRUHVHQWHQFLQJ%XUURXJKVILOHGKLVILUVWPRWLRQIRU FODLPVRQWKHEDVLVRIDVWDWHSURFHGXUDOEDUSUHYHQWVIHGHUDO UHOLHIIURPMXGJPHQWXQGHU0&5HWVHTVHHNLQJWR KDEHDVUHYLHZl,G VHWDVLGHWKHUHPDLQLQJFKDUJHVDQGREWDLQDQHZWULDOEDVHG RQSURVHFXWRULDOPLVFRQGXFWDQGLQHIIHFWLYHDVVLVWDQFHRIWULDO /LNHZLVH WKH 0LFKLJDQ &RXUW RI $SSHDOV DQG 0LFKLJDQ DQGDSSHOODWHFRXQVHO7KHFLUFXLWFRXUWUHMHFWHGERWKFODLPV 6XSUHPH&RXUWjVVWDWHPHQWVWKDW%XUURXJKVZDVQRWHQWLWOHG DQGVHQWHQFHG%XUURXJKVWRDOLIHWHUPIRUIHORQ\PXUGHUDQG WR UHOLHI XQGHU 0&5  '  SUHVHQWV D VXIILFLHQW D WZR\HDU WHUP IRU WKH IHORQ\ ILUHDUP FRQYLFWLRQ  7KH H[SODQDWLRQ WKDW WKHLU UXOLQJV ZHUH EDVHG RQ SURFHGXUDO 0LFKLJDQ&RXUWRI$SSHDOVUHMHFWHG%XUURXJKVjVFUXHODQG GHIDXOW:HWKHUHIRUH5(9(56(WKHGLVWULFWFRXUWjVJUDQW XQXVXDO SXQLVKPHQW FODLP RQ DSSHDO DQG DIILUPHG KLV RIDZULWRIKDEHDVFRUSXVDQGLWVRUGHUGLUHFWLQJWKH6WDWHWR VHQWHQFH  7KH 0LFKLJDQ 6XSUHPH &RXUW GHQLHG OHDYH WR YDFDWH%XUURXJKVjVFRQYLFWLRQIRUIHORQ\PXUGHU DSSHDO %XUURXJKVILOHGDVHFRQGPRWLRQIRUUHOLHIXQGHU0&5 HWVHTDOOHJLQJWKDW *UHHQjVVWDWHPHQWWRDZLWQHVV VKRXOGKDYHEHHQDGPLWWHGDWWULDODQGWKHFRXUWjVIDLOXUHWRGR VR ZDV D GHQLDO RI KLV ULJKW WR SUHVHQW D GHIHQVH   WKH JRYHUQPHQWjV IDLOXUH WR GLVFORVH *UHHQjV JXLOW\ SOHD DQG DUJXPHQW WKDW %XUURXJKV ZDV WKH VKRRWHU FRQVWLWXWHG SURVHFXWRULDOPLVFRQGXFW WULDOFRXQVHOjVIDLOXUHWRSUHVHQW *UHHQjV JXLOW\ SOHD DQG WR PRYH IRU D GLUHFWHG YHUGLFW RI DFTXLWWDO RQ WKH WZR PXUGHU FRXQWV UHVXOWHG LQ LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DQG   DSSHOODWH FRXQVHOjV IDLOXUH WR UDLVHWKHVHLVVXHVRQDSSHDOE\ULJKWZDVLQHIIHFWLYHDVVLVWDQFH RI FRXQVHO  7KH FLUFXLW FRXUW GHQLHG WKHVH FODLPV RQ WKH PHULWVDVZHOODVRQWKHILUVW0&5PRWLRQVGHFLVLRQ  %XUURXJKVY0DNRZVNL 1R 1R %XUURXJKVY0DNRZVNL  RU WKH ILUVW 0LFKLJDQ &RXUW RI $SSHDOVj GHFLVLRQ ,,',6&866,21 6XEVHTXHQWO\ WKH 0LFKLJDQ &RXUW RI $SSHDOV DQG WKH 0LFKLJDQ6XSUHPH&RXUWGHQLHG%XUURXJKVjVDSSOLFDWLRQIRU %XUURXJKVILOHGKLVSHWLWLRQIRUKDEHDVUHOLHILQVRLWV OHDYHWRDSSHDOVWDWLQJKHIDLOHGWRHVWDEOLVKmHQWLWOHPHQWIRU UHYLHZLVVXEMHFWWR86&† G 7KHLQGHSHQGHQW UHOLHIXQGHU0&5 ' l6HH3HRSOHY%XUURXJKV DQGDGHTXDWHVWDWHJURXQGGRFWULQHSURFHGXUDOO\EDUVIHGHUDO 1:G 0LFK  7DEOH  FRXUWVIURPUHYLHZLQJDKDEHDVFODLPXQGHU†mZKHQD VWDWHFRXUWGHFOLQH>V@WRDGGUHVVDSULVRQHUjVIHGHUDOFODLPV %XUURXJKVWKHQILOHGDSHWLWLRQIRUKDEHDVFRUSXVDOOHJLQJ EHFDXVH WKH SULVRQHU KDG IDLOHG WR PHHW D VWDWH SURFHGXUDO WKHVDPHLVVXHVSUHVHQWHGLQKLVVHFRQG0&5PRWLRQ UHTXLUHPHQWl&ROHPDQY7KRPSVRQ86 7KH UHYLHZLQJ PDJLVWUDWH MXGJH IRXQG WKDW QRQH RI   FLWDWLRQVRPLWWHG m,QKDEHDVLIWKHGHFLVLRQRIWKH %XUURXJKVjVFODLPVZDVSURFHGXUDOO\EDUUHGEHFDXVHWKHVWDWH ODVWVWDWHFRXUWWRZKLFKWKHSHWLWLRQHUSUHVHQWHGKLVIHGHUDO DSSHOODWHFRXUWVjJHQHUDOUHIHUHQFHWR0&5 ' UDWKHU FODLPVIDLUO\DSSHDUHGWRUHVWSULPDULO\RQUHVROXWLRQRIWKRVH WKDQ H[SOLFLWO\ UHIHUHQFLQJ 0&5  '   RU LWV FODLPVRUWREHLQWHUZRYHQ>ZLWKIHGHUDOODZ@DQGGLGQRW SURFHGXUDOODQJXDJHZDVLQVXIILFLHQWWRFRQVWLWXWHDUHDVRQHG FOHDUO\ DQG H[SUHVVO\ UHO\ RQ DQ LQGHSHQGHQW DQG DGHTXDWH RSLQLRQIRUSURFHGXUDOGHIDXOWXQGHUVWDWHODZ/RRNLQJWRWKH VWDWHJURXQGDIHGHUDOFRXUWPD\DGGUHVVWKHSHWLWLRQl,GDW FLUFXLWFRXUWjVGHFLVLRQRQWKHVHFRQG0&5PRWLRQ  IRUJXLGDQFHKHIRXQGWKDW%XUURXJKVjVFODLPVZHUHUHMHFWHG RQWKHPHULWVUDWKHUWKDQRQSURFHGXUDOGHIDXOW 7KH6XSUHPH&RXUWmHQFRXUDJH>V@VWDWHFRXUWVWRH[SUHVV SODLQO\LQHYHU\GHFLVLRQSRWHQWLDOO\VXEMHFWWRIHGHUDOUHYLHZ ,QKLVUHFRPPHQGDWLRQWKHPDJLVWUDWHMXGJHILUVWUXOHGWKDW WKHJURXQGVXSRQZKLFKWKHLUMXGJPHQWVUHVWlEXWGRHVQRW WULDOFRXQVHOZDVLQHIIHFWLYHEHFDXVHKHIDLOHGWRPRYHIRUD UHTXLUHWKHXVHRISDUWLFXODUODQJXDJHLQHYHU\FDVHDWHYHU\ GLUHFWHGYHUGLFWRIDFTXLWWDORQERWKPXUGHUFKDUJHVDQGWKDW VWDJHRIUHYLHZLQYROYLQJDVWDWHSULVRQHUjVIHGHUDOFODLP,G IDLOXUHSUHMXGLFHGKLVFOLHQWEHFDXVHVXFKDUXOLQJZRXOGKDYH DW   m>:@KHWKHU D VWDWH FRXUW UHVWHG LWV KROGLQJ RQ FKDQJHGWKHRXWFRPHRIWKHSURFHHGLQJ,QDGGLWLRQKHKHOG SURFHGXUDOGHIDXOWWKXVEDUULQJIHGHUDOKDEHDVUHYLHZLVD WKDW WKH FRPELQHG DFWLRQV RI WKH WULDO FRXUW DQG SURVHFXWRU TXHVWLRQRIODZWREHUHYLHZHGGHQRYRl&RXFKYsDEH SHUPLWWHGWKHSURVHFXWRUWRGLVWRUWWKHmWKHWUXHQDWXUHRIWKH )G WK&LU   8QGHUWKHSURFHGXUDOGHIDXOW IDFWV DYDLODEOHl WR WKH MXU\ DQG WKH PLVFKDUDFWHUL]DWLRQjV DQDO\VLVDIHGHUDOFRXUWmPXVWGHWHUPLQHLIDSHWLWLRQHUIDLOHG HIIHFWRQWKHMXU\jVYHUGLFWUHVXOWHGLQDQXQIDLUWULDO)LQDOO\ WR FRPSO\ ZLWK D VWDWH SURFHGXUDO UXOH DQG LW DOVR PXVW KH UHMHFWHG SHWLWLRQHUjV FODLPV RI LQHIIHFWLYH DVVLVWDQFH RI DQDO\]HZKHWKHUWKHVWDWHFRXUWEDVHGLWVGHFLVLRQRQWKHVWDWH DSSHOODWH FRXQVHO  $V D UHPHG\ WKH PDJLVWUDWH MXGJH SURFHGXUDOUXOHl6LPSVRQYsRQHV)G WK UHFRPPHQGHG WKDW WKH GLVWULFW FRXUW JUDQW %XUURXJKVjV &LU  DSSOLFDWLRQIRUKDEHDVUHOLHIDQGRUGHUWKH6WDWHWRYDFDWHKLV FRQYLFWLRQIRUIHORQ\PXUGHU7KHGLVWULFWFRXUWWKHQDGRSWHG ,WLVXQGLVSXWHGWKDW%XUURXJKVIDLOHGWRSURSHUO\SUHVHQW WKHPDJLVWUDWHMXGJHjVUHSRUWDQGUHFRPPHQGDWLRQ KLV DUJXPHQWV IRU VWDWH DSSHOODWH UHYLHZ  8QGHU 0&5  '   D FRXUW PD\ QRW JUDQW UHOLHI LI WKH GHIHQGDQW SUHVHQWV JURXQGV ZKLFK FRXOG KDYH EHHQ UDLVHG RQ DSSHDO IURPWKHFRQYLFWLRQRUVHQWHQFHRULQDSULRU0&5  SURFHHGLQJXQOHVVWKHGHIHQGDQWGHPRQVWUDWHVJRRGFDXVHIRU 7KH PDJLVWUDWH MXGJH DOVR IRXQG WKDW WKH JRYHUQPHQW IDLOHG WR HVWDEOLVK %XUURXJKVjV SURFHGXUDO GHIDXOW EHFDXVH LW GLG QRW SURYLGH D FRS\ WKH IDLOXUH DQG DFWXDO SUHMXGLFH  ,Q DIILUPLQJ WKH FLUFXLW RI WKH FLUFXLW FRXUWjV RSLQLRQ GHQ\LQJ WKH VHFRQG PRWLRQ IRU UHOLHI IURP FRXUWjVUHMHFWLRQRI%XUURXJKVjVVHFRQGPRWLRQIRUUHOLHIIURP MXGJPHQW