Kinnard v. United States

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/(6 .,11$5' ; 3HWLWLRQHU$SSHOODQW    1R Y  !  81,7(' 67$7(6 2) $0(5,&$  5HVSRQGHQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV 1RnsRQ3KLSSV0F&DOOD'LVWULFWsXGJH $UJXHG$XJXVW 'HFLGHGDQG)LOHG'HFHPEHU %HIRUH.(,7+DQG'$8*+75(<&LUFXLWsXGJHV &$55'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('  6WHSKHQ 5 /HIIOHU 0HPSKLV 7HQQHVVHH IRU $SSHOODQW  sRKQ 7 )RZONHV $66,67$17 81,7(' 67$7(6$77251(<0HPSKLV7HQQHVVHHIRU$SSHOOHH 7KH +RQRUDEOH sDPHV * &DUU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ   .LQQDUGY8QLWHG6WDWHV 1R 21%5,()6WHSKHQ5/HIIOHU0HPSKLV7HQQHVVHHIRU $SSHOODQW  sRKQ 7 )RZONHV $66,67$17 81,7(' 67$7(6$77251(<0HPSKLV7HQQHVVHHIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB s$0(6 * &$55 'LVWULFW sXGJH 'HIHQGDQWDSSHOODQW &KDUOHV.LQQDUGDSSHDOVWKHGLVWULFWFRXUWjVGHQLDORIKLV 86& †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oPRQWKVWRoPRQWKV &RXQVHOIRUWKHFRGHIHQGDQWUHTXHVWHGDUHZHLJKLQJRIWKH QDUFRWLF SULRU WR VHQWHQFLQJ &RXQVHO IRU .LQQDUG GLG QRW PDNH D VLPLODU UHTXHVW 7KH FRGHIHQGDQW ZDV VHQWHQFHG EDVHGRQJUDPVDQG.LQQDUGZDVVHQWHQFHGRQWKHRULJLQDO ZHLJKWRYHUJUDPV3XUVXDQWWRDSOHDDJUHHPHQWWKHEDLO MXPSLQJLQGLFWPHQWZDVGLVPLVVHGEHFDXVHRIWKHVLJQLILFDQW VHQWHQFHWKDW.LQQDUGUHFHLYHGLQKLVRULJLQDOFDVH .LQQDUGj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j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mD UHDVRQDEOHSUREDELOLW\WKDWEXWIRUFRXQVHO VXQSURIHVVLRQDO HUURUVWKHUHVXOWRIWKHSURFHHGLQJZRXOGKDYHEHHQGLIIHUHQW $ UHDVRQDEOH SUREDELOLW\ LV D SUREDELOLW\ VXIILFLHQW WR XQGHUPLQH FRQILGHQFH LQ WKH RXWFRPHl ,G DW  7R GHWHUPLQH LI .LQQDUG ZDV SUHMXGLFHG E\ KLV DWWRUQH\j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jVVHQWHQFHLV$)),50(' GUXJVDGLVWULFWFRXUWGRHVQRWDEXVHLWVGLVFUHWLRQE\UHIXVLQJ WRRUGHUDUHZHLJKLQJ6LPSO\EHLQJFORVHWRWKHOLQHGRHVQRW &21&/86,21 FUHDWHDUHDVRQDEOHGLVSXWHDQGLWGRHVQRWDXWRPDWLFDOO\ UHTXLUHDUHZHLJKLQJRIWKHGUXJV,GDW%HFDXVH.LQQDUG )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUWjV GLGQRWFKDOOHQJHWKHZHLJKWRIWKHGUXJVDQGEHFDXVHWKH GHQLDORI.LQQDUGjV86&†PRWLRQWRYDFDWHKLV FRXUW GLG QRW KDYH DQ REOLJDWLRQ WR UHZHLJK WKH GUXJV KLV VHQWHQFHEDVHGRQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO FRXQVHOGLGQRWDFWXQUHDVRQDEO\LQIDLOLQJWRKDYHWKHGUXJV UHZHLJKHG .LQQDUGFODLPVWKDWKLVODZ\HUZDVLQHIIHFWLYHEHFDXVHKH GLGQRWVHFXUHIRUKLPWKHORZHUVHQWHQFHEDVHGRQDSRVW RIIHQVH UHZHLJKLQJ RI WKH GUXJV WKDW KLV FRGHIHQGDQW UHFHLYHG :KHWKHUWKHDWWRUQH\jVFRQGXFWIHOORXWVLGHDQDFFHSWDEOH SURIHVVLRQDOUDQJHGHSHQGVLQLWLDOO\RQZKHWKHUWKHWULDOFRXUW SURSHUO\FRXOGUHO\RQWKHZHLJKWRIWKHGUXJVDWWKHWLPHRI WKHRIIHQVHUDWKHUWKDQWKHLUZHLJKWDWVRPHODWHUWLPH,IVR QR HUURU RFFXUUHG DW .LQQDUGjV VHQWHQFLQJ HYHQ LI KLV FR GHIHQGDQWJRWWKHEHQHILWRIDORZHUSRVWRIIHQVHZHLJKW7KH IDFWWKDWRQHGHIHQGDQWUHFHLYHGDEHQHILWWRZKLFKKHZDVQRW HQWLWOHG LHDORZHUVHQWHQFHEDVHGRQDZHLJKWWKDWZDVQRW