81,7('67$7(6',675,&7&2857 )257+(',675,&72)&2/80%,$ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 678$570,//6'$9(13257et al. 3ODLQWLIIV Y &LYLO$FWLRQ1R$%- %$%$.'-285$%&+,et al. 'HIHQGDQWV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 0(025$1'8023,1,21 3ODLQWLII6WXDUW0LOOV'DYHQSRUWLVWKHRSHUDWRUDQGVROHRZQHURI%LJ%HDU&DIp//&D UHVWDXUDQW RQ WKH ORZHU OHYHO RI WKH PXOWLVWRU\ URZKRXVH ZKHUH KH DQG KLV IDPLO\ OLYH $P &RPSO>'NW@± 'HIHQGDQWV%DEDN'MRXUDEFKLDQG0RQLFD:HOWDUHKXVEDQGDQG ZLIHDQGWKH\ZHUH'DYHQSRUW¶VQHLJKERUVId.¶ 2Q6HSWHPEHUGHIHQGDQWVORDQHG 'DYHQSRUW DQG LQ WXUQ KH H[HFXWHG D3URPLVVRU\ 1RWH IRU %XVLQHVV DQG &RPPHUFLDO 3XUSRVHV³1RWH´LQIDYRURIGHIHQGDQWVId.([WR$P&RPSO>'NW@³1RWH´ 7KLVFDVHDULVHVRXWRIGHIHQGDQWV¶HIIRUWVWRFROOHFWRQWKHGHEWDQGWKHEDQNUXSWF\SURFHHGLQJV WKDWIROORZHG 2Q2FWREHU'DYHQSRUWILOHGIRU&KDSWHUEDQNUXSWF\SURWHFWLRQLQWKH86 %DQNUXSWF\&RXUWIRUWKH'LVWULFWRI&ROXPELDWRSUHYHQWDWKUHDWHQHGIRUHFORVXUHRQKLVSURSHUW\ E\GHIHQGDQWV$P&RPSO±'HIHQGDQWVILOHGDSURRIRIFODLPZLWKWKHEDQNUXSWF\ FRXUW DOOHJLQJ WKDW 'DYHQSRUW RZHG WKHP XQGHU WKH 1RWH Id. 'DYHQSRUW REMHFWHGFODLPLQJWKDWKHRZHGRQO\Id.7KHEDQNUXSWF\FRXUWKHOGDWULDOWR ,Q'HFHPEHUSODLQWLII'DYHQSRUWILOHGDFRPSODLQWLQWKLV&RXUWDJDLQVWGHIHQGDQWV DQGKHDPHQGHGWKHFRPSODLQWDVRIULJKWRQ)HEUXDU\DGGLQJ%LJ%HDU&DIpDVDVHFRQG SODLQWLIISee &RPSO>'NW@$P&RPSO GHWHUPLQHWKHDPRXQWGXHXQGHUWKH1RWHDQGRQ-XO\LWUXOHGWKDW'DYHQSRUWZDVQRW LQGHIDXOWDQGWKDWKHRZHGId.±([WR$P&RPSO>'NW@³%DQNU 0HP´([WR$P&RPSO>'NW@³%DQNU2UGHU´ 'DYHQSRUWDQGWKH&DIpILOHGDFRPSODLQWLQWKLV&RXUWDULVLQJRXWRIGHIHQGDQWV¶HIIRUWVWR HQIRUFHWKH1RWHSee $P&RPSO3ODLQWLIIVKDYHEURXJKWDVHULHVRIFRPPRQODZDQGVWDWXWRU\ FODLPVDQGGHIHQGDQWVKDYHPRYHGWRGLVPLVVWKHFRPSODLQWLQLWVHQWLUHW\SXUVXDQWWR)HGHUDO 5XOHRI&LYLO3URFHGXUHE'HIV¶0RWWR'LVPLVV$P&RPSO>'NW@³'HIV¶0RW´ 7KH\DUJXHWKDWDOOVHYHQFRXQWVDUHEDUUHGE\WKHGRFWULQHRIres judicataDQGDOWHUQDWLYHO\WKDW WKH\ DUH OHJDOO\ GHIHFWLYH DQG IDFWXDOO\ XQVXSSRUWHG 'HIV¶ 3 $ LQ 6XSS RI 'HIV¶ 0RW >'NW@³'HIV¶0HP´DW± %HFDXVHSODLQWLIIVFRXOGKDYHEURXJKWWKHLUFODLPVLQWKHSULRUEDQNUXSWF\SURFHHGLQJWKH &RXUWFRQFOXGHVWKDWDOOVHYHQRISODLQWLIIV¶FRXQWVDUHEDUUHGE\res judicata7KHUHIRUHWKH&RXUW ZLOO JUDQW WKH PRWLRQ WR GLVPLVV 7KLV RSLQLRQ VKRXOG QRW EH LQWHUSUHWHG LQ DQ\ ZD\ DV DQ HQGRUVHPHQWRIGHIHQGDQWV¶WDFWLFVKRZHYHU %$&.*5281' 3ODLQWLII'DYHQSRUWILOHGWKLVODZVXLWRQ'HFHPEHU&RPSO>'NW@DQGILOHG DQDPHQGHGFRPSODLQWRQ)HEUXDU\ZKLFKDGGHG%LJ%HDU&DIpDVDVHFRQGSODLQWLII $P&RPSO7KHDPHQGHGFRPSODLQWDOOHJHVWKHIROORZLQJIDFWVZKLFKWKH&RXUWPXVWDFFHSWDV WUXHIRUWKHSXUSRVHRIUHVROYLQJWKHSHQGLQJPRWLRQWRGLVPLVV 2Q6HSWHPEHUGHIHQGDQWVORDQHG'DYHQSRUWDQGKHH[HFXWHGD1RWHLQ WKHLU IDYRU IRU ZLWK LQWHUHVW ZKLFK KDG D PDWXULW\ GDWH RI 6HSWHPEHU $P 3ODLQWLIIVRSSRVHGWKHPRWLRQRQ0DUFK3OV¶3 $LQ2SSWR'HIV¶ 0RW >'NW@³3OV¶2SS´DQGGHIHQGDQWVILOHGDUHSO\RQ$SULO'HIV¶5HSO\3 $LQ )XUWKHU6XSSRI'HIV¶0RW>'NW@³'HIV¶5HSO\´ &RPSO 1RWH 7KH ORDQ ZDV VHFXUHG E\ 'DYHQSRUW¶V SURSHUW\ DW VW 6WUHHW 1: :DVKLQJWRQ'&WKHORFDWLRQRI%LJ%HDU&DIp$P&RPSOsee 1RWH([WR$P &RPSO>'NW@³'HHGRI7UXVW´$OWKRXJKWKH1RWHZDVPDGHWR'DYHQSRUWLQGLYLGXDOO\ DQGQRWWRWKH&DIpGHIHQGDQWVDQG'DYHQSRUWXQGHUVWRRGWKDW'DYHQSRUWZRXOGXVHWKHORDQWR SD\ RII SHUVRQDO REOLJDWLRQV ZKLFK ZRXOG HQDEOH KLP WR LQYHVW PRUH LQ WKH EXVLQHVV $P &RPSO± 8QGHUWKHWHUPVRIWKH1RWH'DYHQSRUWFRXOGQRWEHJLQWRSD\WKHSULQFLSDOHDUO\XQOHVV KHSDLGLWDOODWRQFH$P&RPSOsee 1RWH+HFRXOGDQGGLGSD\LQWHUHVWHDUO\WKRXJK $P&RPSO±see1RWH)RU\HDUV'DYHQSRUWEHOLHYHGKHZDVSD\LQJPRQH\WKDWKH RZHGRQWKH1RWHEXWKHZDVDFWXDOO\SD\LQJDKHDGRIVFKHGXOHWKHUHE\FUHDWLQJDFUHGLWZLWK GHIHQGDQWVWRZDUGVIXWXUHREOLJDWLRQV$P&RPSO± 3XUVXDQWWRWKHWHUPVRIWKH1RWH'DYHQSRUWZRXOGEHLQGHIDXOWLIKHIDLOHGWRPDNHD SD\PHQWDQGWKDWIDLOXUHFRQWLQXHGIRUIRXUGD\V$P&RPSOsee 1RWH,IKHZDVLQGHIDXOW GHIHQGDQWV FRXOG IRUHFORVH RQ KLV SURSHUW\ $P &RPSO see 1RWH ,Q -DQXDU\ GHIHQGDQWVLQIRUPHG'DYHQSRUWWKDWKHZDVLQGHIDXOWRQWKH1RWHEHFDXVHKHKDGIDOOHQEHKLQG WKHSD\PHQWVRQKLVILUVWPRUWJDJHRQWKHSURSHUW\DQGWKDWWKH\ZHUHDFFHOHUDWLQJWKH1RWHDQG UHTXLULQJKLPWRSD\WKHIXOOSULQFLSDOE\6HSWHPEHU$P&RPSO±7KHVHWHUPV ZHUHQRWLQFOXGHGLQWKH1RWHDQG'DYHQSRUWZDVLQIDFWQRWLQGHIDXOWId.'HIHQGDQWV WKUHDWHQHGWRIRUHFORVHRQ'DYHQSRUW¶VSURSHUW\LIKHGLGQRWPDNHDIXOO³OXPSVXP´SD\PHQW Id. 7KH\WROG'DYHQSRUWUHSHDWHGO\WKDWKHZDVUHTXLUHGWRPDNHDGGLWLRQDOSD\PHQWVHDFK PRQWK DQG WKH\ GHPDQGHG WKDW KH SURYLGH WKHP ZLWK ILQDQFLDO LQIRUPDWLRQ DERXW WKH &DIp Id. ±see ([WR$P&RPSO>'NW@³(PDLOV´'DYHQSRUWFRPSOLHGZLWKPRVW RIWKHVHUHTXHVWVSee $P&RPSO. 'HIHQGDQWVFRQWLQXHGWRPDNHGHPDQGVWKRXJKDQG WKH\SHUVLVWHGLQWKHLUIDOVHDFFXVDWLRQWKDW'DYHQSRUWZDVLQGHIDXOWId.±see (PDLOV 'DYHQSRUWILOHGIRU&KDSWHUEDQNUXSWF\SURWHFWLRQLQWKH86%DQNUXSWF\&RXUWIRUWKH 'LVWULFWRI&ROXPELDRQ6HSWHPEHUZKLFKSUHYHQWHGGHIHQGDQWVIURPIRUHFORVLQJRQKLV SURSHUW\$P&RPSO±7KHEDQNUXSWF\FRXUWDSSURYHG'DYHQSRUW¶VEDQNUXSWF\SODQ DQG KH FRQWLQXHG PDNLQJ HDUO\ PRQWKO\ SD\PHQWV WR GHIHQGDQWV Id. ± 'XULQJ 'DYHQSRUW¶VILUVWEDQNUXSWF\SURFHHGLQJGHIHQGDQWVILOHGWZRSURRIVRIFODLPRQHRQ2FWREHU DQGWKHRWKHURQ6HSWHPEHUERWKDVVHUWLQJWKDW'DYHQSRUWRZHGRQO\XQGHU WKH1RWHId.see ([WR$P&RPSO>'NW@([WR$P&RPSO>'NW@ 2Q1RYHPEHUGHIHQGDQWVWROG'DYHQSRUWKHKDGEHHQLQGHIDXOWVLQFH1RYHPEHU $P&RPSO,WZDVDWWKLVSRLQWWKDW'DYHQSRUWREWDLQHGOHJDOFRXQVHODQGUHDOL]HGKHKDG EHHQRYHUSD\LQJGHIHQGDQWVId. 2Q 0DUFK 'DYHQSRUW ILOHG D 'HEWRU¶V &RUUHFWHG $SSOLFDWLRQ LQ KLV ILUVW EDQNUXSWF\ FDVH DOOHJLQJ WKDW GHIHQGDQWV YLRODWHG WKH EDQNUXSWF\ FRXUW¶V RUGHUV ZKHQ WKH\ GHPDQGHG H[WUD PRQWKO\ SD\PHQWV $P &RPSO 'HIHQGDQWV FRQWHVWHG WKLV DOOHJDWLRQ FODLPLQJWKDW'DYHQSRUWKDGEHHQLQGHIDXOWVLQFHWKHH[HFXWLRQRIWKH1RWHId.±7KH EDQNUXSWF\FRXUWGHQLHG'DYHQSRUWUHOLHIDQGGLGQRWGHFLGHKRZPXFKKHRZHGXQGHUWKH1RWH GHIHQGDQWVWRRNWKHSRVLWLRQWKDWKHRZHGId.±see ([WR$P&RPSO >'NW@ 'HIHQGDQWVDWWHPSWHGWRIRUHFORVHRQWKHSURSHUW\LQ6HSWHPEHU$P&RPSO see ([WR$P&RPSO>'NW@2Q2FWREHU'DYHQSRUWILOHGKLVVHFRQG&KDSWHU EDQNUXSWF\SHWLWLRQWRVWD\WKHDWWHPSWHGIRUHFORVXUHVDOH$P&RPSO±'XULQJWKH VHFRQG EDQNUXSWF\ FDVH GHIHQGDQWV ILOHG D SURRI RI FODLP DOOHJLQJ WKDW 'DYHQSRUW RZHG XQGHU WKH 1RWH Id. 'DYHQSRUW REMHFWHG DQG DUJXHG WKDW KH RZHG RQO\ Id.7KHEDQNUXSWF\FRXUWKHOGDWULDOWRGHWHUPLQHWKHDPRXQWGXHXQGHUWKH 1RWH,WFRQFOXGHGWKDW'DYHQSRUWRZHGGXHWRDFUHGLWLQKLVIDYRUWKDWKHKDGQHYHU EHHQLQGHIDXOWDQGWKDWGHIHQGDQWV¶UHSUHVHQWDWLRQVUHJDUGLQJKRZPXFK'DYHQSRUWRZHGKLV NQRZOHGJHDQGWKHFODLPHGDJUHHPHQWVEHWZHHQWKHSDUWLHVFRQWUDU\WRWKHWHUPVRIWKH1RWHZHUH QRWFUHGLEOHId.see %DQNU0HP%DQNU2UGHU 7KHFRPSODLQWDOOHJHVWKDWWKURXJKRXWWKHSDUWLHV¶LQWHUDFWLRQVGHIHQGDQWVKDYHKDUDVVHG 'DYHQSRUW DQG WKDW SODLQWLIIV KDYH VXIIHUHG DV D UHVXOW RI GHIHQGDQWV¶ PLVUHSUHVHQWDWLRQV DQG DFWLRQVUHJDUGLQJWKH1RWHSee $P&RPSO±±±&RXQW ,DOOHJHVZURQJIXOIRUHFORVXUHRQ'DYHQSRUW¶VSURSHUW\$P&RPSO±3ODLQWLIIVDOOHJH WKDWGHIHQGDQWVLQLWLDWHGIRUHFORVXUHZKHQWKH\NQHZRUVKRXOGKDYHNQRZQWKDW'DYHQSRUWZDV QRWLQGHIDXOWId. &RXQWV,,DQG9,,DOOHJHWKDWGHIHQGDQWVEUHDFKHGWKHLUFRQWUDFWZLWK'DYHQSRUW DQG%LJ%HDU&DIpE\LQVWLWXWLQJIRUHFORVXUHSURFHHGLQJVZKHQ'DYHQSRUWZDVQRWLQGHIDXOWRQ WKH1RWHDQGWKDWWKH\EUHDFKHGWKHGXW\RIJRRGIDLWKDQGIDLUGHDOLQJId.±± &RXQW,,,DOOHJHVWKDWGHIHQGDQWVYLRODWHG'&&RGHet seq.E\GLVSDUDJLQJSODLQWLIIV¶ EXVLQHVVWKURXJKIDOVHRUPLVOHDGLQJUHSUHVHQWDWLRQVRIPDWHULDOIDFWVId.±3ODLQWLIIV DOOHJH LQ WKLV &RXUW WKDW GHIHQGDQWV KDUDVVHG 'DYHQSRUW DW ZRUN GLVUXSWHG %LJ %HDU &DIp¶V RSHUDWLRQV PDGH EDVHOHVV DQG DQRQ\PRXV FRPSODLQWV WR WKH KHDOWK GHSDUWPHQW VSUHDG UXPRUV DERXWWKH&DIpDQGIDOVHO\OLVWHGWKHSURSHUW\IRUVDOHId.&RXQW,9DOOHJHVWKDWGHIHQGDQWV HQJDJHGLQXQODZIXOWUDGHSUDFWLFHVLQYLRODWLRQRI'&&RGHId.±&RXQWV 9DQG9,DOOHJHWKDWGHIHQGDQWVWRUWLRXVO\LQWHUIHUHGZLWKSODLQWLIIV¶EXVLQHVVDQGFDXVHGSODLQWLIIV ILQDQFLDOKDUGVKLSE\LQVWLWXWLQJZURQJIXOIRUHFORVXUHSURFHHGLQJVDQGFRQGXFWLQJLQSHUVRQVLW LQVDW%LJ%HDU&DIpId.± 67$1'$5'2)5(9,(: ³7RVXUYLYHD>5XOHE@PRWLRQWRGLVPLVVDFRPSODLQWPXVWFRQWDLQVXIILFLHQWIDFWXDO PDWWHUDFFHSWHGDVWUXHWRVWDWHDFODLPWRUHOLHIWKDWLVSODXVLEOHRQLWVIDFH´Ashcroft v. Iqbal 86LQWHUQDOTXRWDWLRQPDUNVRPLWWHGaccord Bell Atl. Corp. v. Twombly 86,QUXOLQJXSRQDPRWLRQWRGLVPLVVIRUIDLOXUHWRVWDWHDFODLPDFRXUW PD\RUGLQDULO\FRQVLGHURQO\³WKHIDFWVDOOHJHGLQWKHFRPSODLQWGRFXPHQWVDWWDFKHGDVH[KLELWV RULQFRUSRUDWHGE\UHIHUHQFHLQWKHFRPSODLQWDQGPDWWHUVDERXWZKLFKWKH&RXUWPD\WDNHMXGLFLDO QRWLFH´Gustave-Schmidt v. Chao)6XSSG''&FLWDWLRQVRPLWWHG $1$/<6,6 'HIHQGDQWVKDYHPRYHGWRGLVPLVVDOOVHYHQFRXQWVLQWKHDPHQGHGFRPSODLQWXQGHUWKH GRFWULQHRIres judicata'HIV¶0HPDW7KHGRFWULQHEDUVSDUWLHV³IURPUHOLWLJDWLQJLVVXHV WKDW ZHUH RU FRXOG KDYH EHHQ UDLVHG´LQDSUHYLRXVDFWLRQAllen v. McCurry 86 FLWLQJ Cromwell v. Cty. of Sac 86 8QGHU WKLV SULQFLSOH ³D VXEVHTXHQWODZVXLWZLOOEHEDUUHGLIWKHUHKDVEHHQSULRUOLWLJDWLRQLQYROYLQJWKHVDPHFODLPV RUFDXVHRIDFWLRQEHWZHHQWKHVDPHSDUWLHVRUWKHLUSULYLHVDQGWKHUHKDVEHHQDILQDOYDOLG MXGJPHQWRQWKHPHULWVE\DFRXUWRIFRPSHWHQWMXULVGLFWLRQ´Smalls v. United States )G'&&LUFLWDWLRQVRPLWWHG7KHVHWUDGLWLRQDOUXOHVRIres judicata³DSSO\ WRWKHGHFLVLRQVRIEDQNUXSWF\FRXUWV´Katchen v. Landy86FLWLQJChicot Cty. Drainage Dist. v. Baxter State Bank86±6LQFHDOOIRXUHOHPHQWV RIres judicataKDYHEHHQPHWLQWKLVFDVHSODLQWLIIVDUHEDUUHGIURPEULQJLQJWKHLUFODLPVLQWKH SUHVHQWDFWLRQ , 3ODLQWLIIV¶FODLPVFRQVWLWXWHWKHVDPHFODLPVRUFDXVHRIDFWLRQ ³:KHWKHUWZRFDVHVLPSOLFDWHWKHVDPHFDXVHRIDFWLRQWXUQVRQZKHWKHUWKH\VKDUHWKH VDPHµQXFOHXVRIIDFWV¶´Drake v. FAA)G'&&LUTXRWLQJPage v. United States )G '& &LU ³>,@W LV WKH IDFWV VXUURXQGLQJ WKH WUDQVDFWLRQ RU RFFXUUHQFH ZKLFK RSHUDWH WR FRQVWLWXWH WKH FDXVH RI DFWLRQ QRW WKH OHJDO WKHRU\ XSRQ ZKLFK D OLWLJDQWUHOLHV´Page)GDWTXRWLQJExpert Elec., Inc. v. Levine)G G &LU 7KH '& &LUFXLW KDV ³HPEUDFHG WKH 5HVWDWHPHQW 6HFRQG RI -XGJPHQWV¶ SUDJPDWLF WUDQVDFWLRQDO DSSURDFK WR GHWHUPLQLQJ ZKDW FRQVWLWXWHV D FDXVH RI DFWLRQ´ DQG KDV H[SODLQHGWKDWWKH5HVWDWHPHQWJLYHV³ZHLJKWWRVXFKFRQVLGHUDWLRQVDVZKHWKHUWKHIDFWVDUHUHODWHG LQWLPHVSDFHRULJLQRUPRWLYDWLRQ´U.S. Indus., Inc. v. Blake Constr. Co.)G '&&LUTXRWLQJ5HVWDWHPHQW6HFRQGRI-XGJPHQWV7KHGHWHUPLQDWLRQ RIZKHWKHUWZRFDVHVLQYROYHWKHVDPHFDXVHRIDFWLRQUHTXLUHVFRQVLGHUDWLRQRIQRWRQO\FODLPV WKDWZHUHDFWXDOO\UDLVHGLQSULRUOLWLJDWLRQEXWDOVRPDWWHUVWKDW³FRXOGKDYHEHHQUDLVHGLQWKDW DFWLRQ´Allen86DWFLWLQJCromwell86DW +HUHDOORISODLQWLIIV¶FODLPVDULVHIURPWKHVDPHQXFOHXVRIIDFWVLQYROYHGLQ'DYHQSRUW¶V &KDSWHU SURFHHGLQJ DQG WKH SURRI RI FODLP GHFLGHG E\ WKH EDQNUXSWF\ FRXUW See $P &RPSO±%DQNU0HP%RWKGLVSXWHVLQYROYHWKHLQWHUSUHWDWLRQDQGHQIRUFHPHQWRIWKH 1RWH'DYHQSRUW¶VSD\PHQWVXQGHUWKH1RWHDQGGHIHQGDQWV¶DWWHPSWVWRIRUHFORVHRQWKHSURSHUW\ See$P&RPSO±%DQNU0HP 3ODLQWLIIVDUJXHWKDWWKHLUQHZFODLPVGRQRWPHHWWKHWUDQVDFWLRQDOWHVWEHFDXVHWKHIDFWV VXUURXQGLQJWKHSUHVHQWFODLPV³LQYROYHDVXEVWDQWLDOO\PRUHH[SDQVLYHWLPHVSDFHRULJLQDQG PRWLYHWKDQWKHOLPLWHGIDFWVUHVROYHGE\WKH%DQNUXSWF\&RXUW´3OV¶2SSDW%XWLWGRHV QRWPDWWHUZKDWIDFWXDOTXHVWLRQVWKHSUHYLRXVFRXUWDFWXDOO\UHVROYHGSee Drake)GDW 7KHGLVSRVLWLYHLVVXHLVZKHWKHUWKHQHZFODLPVDULVHRXWRIWKHVDPHVHWRIIDFWVDQGZKHWKHUWKH SODLQWLIIcould KDYHUDLVHGWKHPLQWKHSUHYLRXVSURFHHGLQJId.+HUHWKHUHDUHQRQHZIDFWVJLYLQJ ULVH WR QHZ SRVVLEOH FODLPV DQG SODLQWLIIV DUH ³VLPSO\ UDLVLQJ D QHZ OHJDO WKHRU\´ ZKLFK LV ³SUHFLVHO\ZKDWLVEDUUHGE\UHVMXGLFDWD´Apotex, Inc. v. FDA)G±'&&LU 3ODLQWLIIV DOVR DUJXH WKDW ZKHQres judicata LV DSSOLHG LQ WKH EDQNUXSWF\ FRQWH[W FRXUWV FRQVLGHU ZKHWKHU D VXEVHTXHQW LQGHSHQGHQW MXGJPHQW ZRXOG ³LPSDLU GHVWUR\ FKDOOHQJH RU LQYDOLGDWHWKHHQIRUFHDELOLW\RUHIIHFWLYHQHVV´RIWKHEDQNUXSWF\GHFLVLRQZKHQGHWHUPLQLQJLIWKH DFWLRQLQYROYHVWKHVDPHFODLPVRUFDXVHVRIDFWLRQDVWKHEDQNUXSWF\SURFHHGLQJ3O¶V2SSDW TXRWLQJIn re Residential Capital, LLC%5%DQNU6'1<$QGFRXUWV KDYHUHOLHGXSRQWKDWWKHRU\WREDUVXEVHTXHQWFODLPV%XWSODLQWLIIVPDLQWDLQWKDWWKHQHZFODLPV VKRXOGEHDOORZHGWRJRIRUZDUGEHFDXVHWKH³ULJKWVRULQWHUHVWVHVWDEOLVKHGLQWKHSULRUMXGJPHQW ZRXOG>not@EHGHVWUR\HGRULPSDLUHGE\SURVHFXWLRQ´RIWKLVDFWLRQ3OV¶2SSDW±FLWLQJ Siegel v. Fed. Home Loan Mortg. Corp. )G WK &LU HPSKDVLV DGGHG See, e.g. Capitol Hill Grp. v. Pillsbury, Winthrop, Shaw, Pittman, LLC)G '&&LUDSSO\LQJWKH³LPSDLUPHQW´IDFWRUWRFRXQWHUFODLPVDVVHUWHGLQWKHEDQNUXSWF\ FRQWH[WDQGEDUULQJVXEVHTXHQWPDOSUDFWLFHFODLPVDJDLQVWDQDWWRUQH\DIWHUWKHEDQNUXSWF\FRXUW KDG SUHYLRXVO\ DZDUGHG DWWRUQH\V¶ IHHV DQG FRPPHQWHG RQ WKH DGHTXDF\ RI WKH DWWRUQH\¶V UHSUHVHQWDWLRQ Robertson v. Cartinhour)6XSSG''&SUHFOXGLQJFODLP XQGHU res judicata VLQFH ³LW ZRXOG HVVHQWLDOO\ QXOOLI\ WKH MXU\¶V ILQGLQJV´ LQ WKH SUHYLRXV EDQNUXSWF\OLWLJDWLRQMarbury Law Grp., PLLC v. Carl)6XSSG''& QRWLQJWKDWWKH³QXOOLILFDWLRQH[FHSWLRQ´LV³QDUURZ´DQG³SURYLGHVWKDWDSDUW\will EHSUHFOXGHG IURPEULQJLQJDIXWXUHVXLWRQDFODLPWKDWFRXOGKDYHEHHQDVVHUWHGLQDSULRUDFWLRQ´HPSKDVLV LQRULJLQDOsee also Corbett v. MacDonald Moving Servs., Inc.)G±G&LU REVHUYLQJWKDWWKH³LPSDLUPHQW´IDFWRULV³DQDVSHFWIRUWKHWHVWIRULGHQWLW\RIWKHFDXVHV RI DFWLRQ´ EXW XOWLPDWHO\ FRQFOXGLQJ WKDW WKH FDXVHV RI DFWLRQ ZHUH WKH VDPH EHFDXVH WKH\ ³LQYROYH>G@WKHVDPHWUDQVDFWLRQ´VRWKHFODLPVZHUHEDUUHG +RZHYHUSODLQWLIIVKDYHQRWSRLQWHGWRDQ\DXWKRULW\WKDWKROGVWKDWDQDEVHQFHRILPSDLUPHQWLV UHOHYDQWWRWKHres judicata DQDO\VLV %HFDXVHDOORIWKHIDFWVLQWKHFRPSODLQWDULVHRXWRIWKHVDPHORDQWUDQVDFWLRQWKDWVHUYHG DVWKHEDVLVIRUWKHEDQNUXSWF\SURFHHGLQJWKH&RXUWFRQFOXGHVWKDWWKHFODLPVFRQVWLWXWHWKHVDPH FDXVHRIDFWLRQIRUSXUSRVHVRIres judicata ,, 3ODLQWLIIV¶FODLPVDUHEHWZHHQWKHVDPHSDUWLHVRUWKHLUSULYLHV 7KH GRFWULQH RI res judicata DSSOLHV RQO\ LI WKH SULRU MXGJPHQW ZDV EHWZHHQ ³WKH VDPH SDUWLHVRUWKHLUSULYLHV´Drake)GDWTXRWLQJParklane Hosiery Co. v. Shore86 Q+HUHWKHSULRUEDQNUXSWF\SURFHHGLQJZDVEHWZHHQGHIHQGDQWVDQGSODLQWLII 'DYHQSRUWRQO\EXWVLQFH%LJ%HDU&DIpLVLQSULYLW\ZLWK'DYHQSRUWIRUres judicata SXUSRVHV WKLVHOHPHQWRIres judicata LVPHW ³7KH WHUP µSULYLW\¶ LV DQ HOXVLYH FRQFHSW ZLWKRXW DQ\ SUHFLVH GHILQLWLRQ RI JHQHUDO DSSOLFDELOLW\,WLVVXIILFLHQWWKDWWKHZRUGGHVLJQDWHVDSHUVRQVRLGHQWLILHGLQLQWHUHVWZLWKD 3ODLQWLIIVSRLQWWREvans v. First Mount Vernon, ILA)6XSSG''& WRVXSSRUWWKHLUDVVHUWLRQWKDWWKHFXUUHQWFODLPVGRQRWFRQVWLWXWHWKHVDPHFDXVHRIDFWLRQEHFDXVH WKH\ GR QRW LPSDLU WKH EDQNUXSWF\ FRXUW¶V MXGJPHQW 3OV¶ 2SS DW %XW WKH FDVH LV GLVWLQJXLVKDEOH DQG LW ZDV QRW GHFLGHG RQ WKDW EDVLV ,Q Evans WKH SODLQWLII FRQVHQWHG WR KHU &KDSWHUFRQILUPDWLRQLQEDQNUXSWF\FRXUWDQGGLGQRWREMHFWWRDQ\FODLPV)6XSSGDW ±7KHFRXUWKHOGWKDWFODLPVDULVLQJRXWRIWKHFRQILUPDWLRQZHUHQRWEDUUHGE\res judicata EHFDXVH³LVVXHVWKDWPXVWEHUHVROYHGWKURXJKDGYHUVDU\SURFHHGLQJVDUHQRWSDUWRIWKH&KDSWHU FRQILUPDWLRQSURFHVVDQGXQOHVVWKH\DUHDFWXDOO\OLWLJDWHG&KDSWHUSODQFRQILUPDWLRQVZLOO QRWKDYHSUHFOXVLYHHIIHFWDVWRWKRVHLVVXHV´Id.DW+HUHSODLQWLIIVGLGFKDOOHQJHGHIHQGDQWV¶ SURRIRIFODLPLQWKHEDQNUXSWF\SURFHHGLQJVDQGWKRVHLVVXHVZHUHDFWXDOO\OLWLJDWHGSee%DQNU 0HPDW)XUWKHUEvans QHYHUPHQWLRQVWKH³LPSDLUPHQW´IDFWRUEXWUDWKHUUHOLHVRQWKHJHQHUDO res judicataIDFWRUVLQFRPLQJWRLWVGHFLVLRQ7KHFRXUWIRXQGWKDWWKHSODLQWLII¶VFODLPVZHUHQRW EDUUHG EHFDXVH ³WKH\ KD>G@ QRW EHHQ VXEMHFW WR D ILQDO MXGJPHQW RQ WKH PHULWV´ Id. DW 3ODLQWLIIV DOVR FLWH Gaudin v. Saxon Mortgage Services, Inc. )6XSS G 1' &DO IRU WKH VDPH SURSRVLWLRQ 3OV¶ 2SS DW +RZHYHU Gaudin QHYHU GLVFXVVHV WKH LPSDLUPHQWWKHRU\See Gaudin)6XSSGDW7KH&RXUWKHOGWKDWres judicata GLGQRW EDUWKHSODLQWLII¶VVXEVHTXHQWDFWLRQEHFDXVH³LW>GLG@QRWLPSOLFDWHDQ\RIWKHPDWWHUVWKDWZHUH UDLVHGE\>WKHSODLQWLII¶V@SURRIRIFODLPLQWKHEDQNUXSWF\SURFHHGLQJ´Id. SDUW\WRIRUPHUOLWLJDWLRQWKDWKHUHSUHVHQWVSUHFLVHO\WKHVDPHOHJDOULJKWLQUHVSHFWWRWKHVXEMHFW PDWWHULQYROYHG´Jefferson Sch. of Soc. Sci. v. Subversive Activities Control Bd.)G '& &LU :KHQ WZR SDUWLHV DUH LQ SULYLW\ WKHLU UHODWLRQVKLS ³LV VXFK WKDW D MXGJPHQW LQYROYLQJRQHRIWKHPPD\MXVWO\EHFRQFOXVLYHXSRQWKHRWKHU>@´HYHQWKRXJKWKHRWKHUZDVQRW DSDUW\WRWKHMXGJPHQWGill & Duffus Servs., Inc. v. A. M. Nural Islam)G'& &LU ³>1@RQSDUW\ SUHFOXVLRQ PD\ EH MXVWLILHG EDVHG RQ D YDULHW\ RI SUHH[LVWLQJ µVXEVWDQWLYH OHJDOUHODWLRQVKLS>V@¶EHWZHHQWKHSHUVRQWREHERXQGDQGDSDUW\WRWKHMXGJPHQW´DVZHOODVZKHQ DSDUW\ZDV³µDGHTXDWHO\UHSUHVHQWHGE\VRPHRQHZLWKWKHVDPHLQWHUHVWVZKR>ZD@VDSDUW\¶WRWKH VXLW´Taylor v. Sturgell86FLWDWLRQVRPLWWHGseeRemy Enter. Grp., LLC v. Davis)6XSSG±''&ILQGLQJ//&ZDVLQSULY\ZLWKLWVVROHPHPEHU IRUSXUSRVHVRIFODLPSUHFOXVLRQYing Qing Lu v. Lezell)6XSSG''& FRQFOXGLQJWKDWWKHSDUWLHVZHUHLQSULYLW\EHFDXVHWKHUHZDVQR³PHDQLQJIXOGLVWLQFWLRQEHWZHHQ >SODLQWLII@WKHLQGLYLGXDODQGKLVFRPSDQ\´ 'DYHQSRUWWKHSDUW\WRWKHSULRUEDQNUXSWF\SURFHHGLQJsee%DQNU0HPDW³PDLQWDLQV DRZQHUVKLSLQWHUHVW´LQ%LJ%HDU&DIp$P&RPSO,QOLJKWRIWKLVVXEVWDQWLYHOHJDO UHODWLRQVKLS'DYHQSRUWFDQEHVDLGWRKDYHUHSUHVHQWHGWKH&DIp¶VLQWHUHVWVLQWKHSULRUEDQNUXSWF\ SURFHHGLQJVRDVWRSUHFOXGHWKH&DIpIURPUHDVVHUWLQJFODLPVWKDWZHUHRUFRXOGKDYHEHHQPDGH LQWKHSULRUFDVH,QGHHGWKHRZQHUVKLSRIWKH&DIpDQGGHIHQGDQWV¶HIIRUWVWRIRUHFORVHRQWKH SURSHUW\ZHUHWKHGULYLQJIDFWRUEHKLQGWKHHQWLUHEDQNUXSWF\SURFHHGLQJ 7KH&RXUWQRWHGWKDW³>T@XDOLI\LQJUHODWLRQVKLSVLQFOXGHbut are not limited toSUHFHGLQJ DQGVXFFHHGLQJRZQHUVRISURSHUW\EDLOHHDQGEDLORU>@DVVLJQHHDQGDVVLJQRU´DQG³VXLWVEURXJKW E\WUXVWHHVJXDUGLDQVDQGRWKHUILGXFLDULHV´Taylor86DWHPSKDVLVDGGHG 3ODLQWLIIV PDLQWDLQ WKDW %LJ %HDU &DIp FDQQRW EH IRXQG WR EH LQ SULYLW\ ZLWK 'DYHQSRUW EHFDXVH³%LJ%HDUKDGQRLQWHUHVWZKDWVRHYHULQWKH>EDQNUXSWF\@PDWWHU´3OV¶2SSDW%XW SODLQWLIIV¶DPHQGHGFRPSODLQWDOOHJHVWKDWWKH&DIpZDV³XVHGWRVHFXUHWKH1RWH´WKH1RWHZDV LQWHQGHGWR³UHGXFHWKHILQDQFLDOSUHVVXUHRQ'DYHQSRUWDQGDOORZKLPWRLQYHVWPRUHUHVRXUFHV LQWR%LJ%HDU´WKHEDQNUXSWF\SURFHHGLQJZDVLQVWLWXWHGWRIRUHVWDOOIRUHFORVXUHRQWKH&DIpDQG WKDWGXULQJWKHEDQNUXSWF\SURFHHGLQJGHIHQGDQWVGHPDQGHG³ILQDQFLDOLQIRUPDWLRQRQ%LJ%HDU FODLPLQJWKDWWKH\ZHUHHQWLWOHGWRWKHLQIRUPDWLRQWRHQVXUHWKHLUµLQYHVWPHQW¶ZDVVDIH´$P &RPSO±±±*LYHQWKRVHIDFWVDQG'DYHQSRUW¶VVROHRZQHUVKLSRIWKH EXVLQHVVWKH&RXUWILQGVSODLQWLIIVWREHLQSULYLW\IRUres judicataSXUSRVHV ,,, 7KHSULRUEDQNUXSWF\SURFHHGLQJZDVDILQDOYDOLGMXGJPHQWRQWKHPHULWV $MXGJPHQWRQWKHPHULWVLVRQHWKDWUXOHVRQWKHVXEVWDQWLYHJURXQGVRIWKHFODLPQRWRQ GHIHFWVRIIRUPRUSURFHGXUHSee United States v. Kearney)G'&&LU 3ODLQWLIIVGRQRWGLVSXWHWKDWWKHEDQNUXSWF\SURFHHGLQJZDVDILQDOYDOLGMXGJPHQWRQWKHPHULWV 3OV¶ 2SS DW ± ³'HIHQGDQWV DUJXH DQG >S@ODLQWLIIV GR QRW GLVSXWH WKDW WKH EDQNUXSWF\ FRXUW>¶V@UXOLQJFRQVWLWXWHVDµILQDOYDOLGMXGJPHQW¶RQWKHSUHFLVHDPRXQW'DYHQSRUWRZHG XQGHUWKHQRWH´7KHUHIRUHWKLVHOHPHQWRIres judicata LVVDWLVILHG ,9 7KHEDQNUXSWF\FRXUWLVDFRXUWRIFRPSHWHQWMXULVGLFWLRQ 7KH6XSUHPH&RXUWKDVGHVFULEHGD³FRXUWRIFRPSHWHQWMXULVGLFWLRQ´DV³DFRXUWZLWKDQ H[LVWLQJVRXUFHRIVXEMHFWPDWWHUMXULVGLFWLRQ´Lightfoot v. Cendant Mortg. Corp.6&W FLWLQJEx parte Phenix Ins. Co.86+HUHWKHEDQNUXSWF\FRXUWKDG MXULVGLFWLRQRYHUGHIHQGDQWV¶SURRIRIFODLPDJDLQVW'DYHQSRUWsee 86&EDQG SODLQWLIIVGRQRWDUJXHWKDWWKHEDQNUXSWF\FRXUWZDVQRWDFRXUWRIFRPSHWHQWMXULVGLFWLRQUHJDUGLQJ WKLVPDWWHU5DWKHUWKH\DUJXHWKDWWKHFODLPVWKH\QRZEULQJEHIRUHWKLV&RXUWDUHFODLPVRYHU ZKLFKWKHEDQNUXSWF\FRXUWODFNHGMXULVGLFWLRQXQGHUStern v. Marshall863OV¶ 2SSDW± %DQNUXSWF\ FRXUWV KDYH MXULVGLFWLRQ WR ³KHDU DQG HQWHU ILQDO MXGJPHQWV LQ µDOO FRUH SURFHHGLQJV XQGHU WLWOH ¶´ Stern 86 DW TXRWLQJ 86&E ³>&@RUH SURFHHGLQJVDUHWKRVHWKDWDULVHLQDEDQNUXSWF\FDVHRUXQGHU7LWOH´Id.DW7KH\³LQFOXGH EXWDUHQRWOLPLWHGWR´VL[WHHQGLIIHUHQWW\SHVRIPDWWHUVVXFKDVWKH³DOORZDQFHRUGLVDOORZDQFH RIFODLPVDJDLQVWWKHHVWDWH´DVZHOODV³FRXQWHUFODLPVE\WKHHVWDWHDJDLQVWSHUVRQVILOLQJFODLPV DJDLQVWWKHHVWDWH´86&E:LWKUHVSHFWWRQRQFRUHFODLPVZKLFKDUH³RWKHUZLVH UHODWHGWRDFDVHXQGHUWLWOH´EDQNUXSWF\FRXUWVKDYHVWDWXWRU\DXWKRULW\WRKHDUWKHSURFHHGLQJV DQG³VXEPLWSURSRVHGILQGLQJVRIIDFWDQGFRQFOXVLRQVRIODZWRWKHGLVWULFWFRXUW´F 7KHGLVWULFWFRXUWPXVWWKHQUHYLHZWKHSURSRVHGILQGLQJVDQGFRQFOXVLRQVde novoDQGHQWHUDQ\ ILQDOMXGJPHQWId. 7KHRQHVWDWXWRU\H[FHSWLRQWRWKLVJHQHUDOUXOHLVLIDOOSDUWLHVFRQVHQWWKH EDQNUXSWF\MXGJHPD\³KHDUDQGGHWHUPLQHDQG>@HQWHUDSSURSULDWHRUGHUVDQGMXGJPHQWV´DVLI WKHSURFHHGLQJZHUHFRUHF ,QStern v. MarshallWKH6XSUHPH&RXUWGHWHUPLQHGWKDWVRPHFODLPVODEHOHGE\&RQJUHVV DV³FRUH´PD\QRWEHDGMXGLFDWHGE\DEDQNUXSWF\FRXUWLQWKHPDQQHUGHVFULEHGE\VWDWXWHSee Stern 86 DW see also 86& E ,W KHOG WKDW DOWKRXJK FRXQWHUFODLPV DUH JHQHUDOO\ODEHOHGDV³FRUH´SURFHHGLQJVEDQNUXSWF\MXGJHVGRQRWKDYHWKHFRQVWLWXWLRQDODXWKRULW\ XQGHU$UWLFOH,,,WRHQWHUILQDOMXGJPHQWVRQFHUWDLQFRXQWHUFODLPVVXFKDVWKRVHDULVLQJXQGHU VWDWHFRPPRQODZSee Stern86DWExec. Benefits Ins. Agency v. Arkison6&W 7KHVHFODLPVDUHQRZUHIHUUHGWRDVStern FODLPVSee Stern 86DW Exec. Benefits Ins. Agency 6 &W DW GHVFULELQJ D Stern FODLP DV ³D FODLP GHVLJQDWHGIRUILQDODGMXGLFDWLRQLQWKHEDQNUXSWF\FRXUWDVDVWDWXWRU\PDWWHUEXWSURKLELWHGIURP SURFHHGLQJLQWKDWZD\DVDFRQVWLWXWLRQDOPDWWHU´ ,QExecutive Benefits Insurance Agency v. ArkisonWKH6XSUHPH&RXUWIXUWKHUFODULILHGWKDW ³ZKHQDEDQNUXSWF\FRXUWLVSUHVHQWHGZLWK>DStern@FODLPWKHSURSHUFRXUVHLVWRLVVXHSURSRVHG ILQGLQJVRIIDFWDQGFRQFOXVLRQVRIODZ´MXVWOLNHWKHEDQNUXSWF\FRXUWZRXOGGRLIWKHFODLPZDV QRQFRUH Exec. Benefits6&W DWVWDWLQJWKDWWKHEDQNUXSWF\VWDWXWH SHUPLWV Stern FODLPV WR SURFHHG DV QRQFRUH SURFHHGLQJV see Stern 86 DW H[SODLQLQJ WKDW UHPRYDO RI FHUWDLQ VWDWH ODZ FRXQWHUFODLPV IURP FRUH EDQNUXSWF\ MXULVGLFWLRQ GRHV QRW ³PHDQLQJIXOO\FKDQJH>@WKHGLYLVLRQRIODERULQWKHFXUUHQWVWDWXWH´IRUEDQNUXSWF\FRXUWV7KH 6XSUHPH&RXUWZHQWRQHVWHSIXUWKHULQWellness International NetworkLtd. v. SharifKROGLQJ WKDWSDUWLHVPD\FRQVHQWWRWKHILQDODGMXGLFDWLRQRIStern FODLPVE\DEDQNUXSWF\FRXUWMXVWDV WKH\PD\GRZLWKUHJDUGWRQRQFRUHFODLPV6&W±³>:@HFRQFOXGH WKDWDOORZLQJEDQNUXSWF\OLWLJDQWVWRZDLYHWKHULJKWWR$UWLFOH,,,DGMXGLFDWLRQRIStern FODLPVGRHV QRWXVXUSWKHFRQVWLWXWLRQDOSUHURJDWLYHVRI$UWLFOH,,,FRXUWV´ 7KH'&&LUFXLWKDVQRWUXOHGRQZKHWKHUres judicataDSSOLHVWRQRQFRUHFODLPVLIWKH SDUWLHVGLGQRWUDLVHWKRVHFODLPVLQDSULRUEDQNUXSWF\SURFHHGLQJ%XWDOPRVWHYHU\&LUFXLWWKDW KDVDGGUHVVHGWKLVLVVXHKDVKHOGWKDWres judicataDSSOLHVWRFODLPVWKDWFRXOGKDYHEHHQEURXJKW LQWKHEDQNUXSWF\SURFHHGLQJUHJDUGOHVVRIZKHWKHUWKRVHFODLPVZRXOGKDYHEHHQFRUHRUQRQ FRUHSee, e.g. In re Int’l Nutronics )G±WK&LUKROGLQJWKDWQRQFRUH FODLPVQRWUDLVHGLQEDQNUXSWF\SURFHHGLQJZHUHEDUUHGE\res judicataEHFDXVHWKH\FRXOGKDYH EHHQDVVHUWHGZKLFKLVHQRXJKIRUres judicataSXUSRVHVHYHQLIWKHEDQNUXSWF\FRXUWFRXOGQRW KDYHUHQGHUHGDILQDOGHFLVLRQPlotner v. AT&T Corp.)GWK&LU VDPHCoreStates Bank, N.A. v. Huls Am., Inc.)GG&LUVDPHSanders Confectionery Prod., Inc. v. Heller Fin., Inc.)GWK&LUVDPHSure-Snap Corp. v. State St. Bank & Tr. Co.)G±G&LUVDPH7KHVHGHFLVLRQV ILQGLQJ res judicata DSSOLFDEOH WR QRQFRUH EDQNUXSWF\ SURFHHGLQJV UHVW RQ WKH WKHRU\ WKDW WKH EDQNUXSWF\ FRXUW FRXOG KDYH UHQGHUHG D ILQDO MXGJPHQW RQ WKH QRQFRUH FODLPV LI WKH SDUWLHV FRQVHQWHGDQGWKDWHYHQZLWKRXWWKHSDUWLHV¶FRQVHQWWKHEDQNUXSWF\FRXUWFRXOGKDYHKHDUGWKH QRQFRUHFODLPVDQGGHYHORSHGSURSRVHGILQGLQJVRIIDFWDQGFRQFOXVLRQVRIODZDQGWKRVHFODLPV ZRXOGKDYHWKHQEHHQGHFLGHGE\WKHGLVWULFWFRXUWSee, e.g. In re Int’l Nutronics)GDW see also 86&F±7KXVWKHZHLJKWRIH[LVWLQJDXWKRULW\LVLQIDYRURIDSSO\LQJ res judicata WRDQ\QRQFRUHFODLPWKDWFRXOGKDYHEHHQEURXJKWLQWKHEDQNUXSWF\SURFHHGLQJDQG WKH&RXUWZLOODSSO\WKDWUHDVRQLQJKHUH 1RFRXUWKDV\HWDGGUHVVHGZKHWKHUWKHORJLFEHKLQGWKHVHFDVHVZRXOGDOVRDSSO\WRStern FODLPV+RZHYHUWKH6XSUHPH&RXUWLWVHOIKDVVDLGWKDWLWVGHFLVLRQLQSternGLGQRWFKDQJHWKH GLYLVLRQRIODERUIRUEDQNUXSWF\FRXUWVStern86DWDQGLWKDVFODULILHGWKDWStern FODLPV DUHWREHWUHDWHGDVQRQFRUHFODLPVSee Exec. Benefits6&WDW6RDEVHQWH[SOLFLW 7ZRFLUFXLWVKDYHKHOGWKDWres judicataGRHVQRWDSSO\LIWKHFODLPVZRXOGKDYHEHHQQRQ FRUHSURFHHGLQJVSee Barnett v. Stern)G±WK&LUH[SODLQLQJWKDWQRQ FRUHFODLPQRWUDLVHGLQEDQNUXSWF\SURFHHGLQJZDVQRWEDUUHGE\res judicataEHFDXVHres judicata FDQRQO\EDUSUHYLRXVO\XQDVVHUWHGFRUHFODLPVHowell Hydrocarbons, Inc. v. Adams)G WK&LUVDPH7KHVHFDVHVKRZHYHUGR³QRWWDNHDFFRXQWRIWKHIDFWWKDWDQRQ FRUHFODLPFDQEHDVVHUWHGLQEDQNUXSWF\FRXUWHYHQWKRXJKILQDOGHFLVLRQZLOOWDNHSODFHLQGLVWULFW FRXUW´ In re Int’l Nutronics )G DW 0RUHRYHU ERWK &LUFXLWV KDYH VXEVHTXHQWO\ TXHVWLRQHGWKHVHSUHYLRXVKROGLQJVSee Matrix IV, Inc. v. Am. Nat’l Bank & Tr. Co.)G ±WK&LUVWDWLQJWKDWVLQFHBarnettWKH6HYHQWK&LUFXLW³KDVFRQWLQXHGWRDSSO\ res judicata LQ WKH EDQNUXSWF\ FRQWH[W ZLWKRXW UHIHUHQFH WR WKH FRUHQRQFRUH GLVWLQFWLRQ´ EXW UHIXVLQJWRRYHUWXUQWKHFDVHEHFDXVHLWFRXOGGHFLGHWKHFXUUHQWFDVHRQQDUURZHUJURXQGVIn re Baudoin)GQWK&LUVWDWLQJLQDIRRWQRWHWKDWWKH&LUFXLWLVQRWVXUH WKDW ³EDQNUXSWF\ MXULVGLFWLRQ PXVW DOZD\V EH FRUH LQ RUGHU WR EH µFRPSHWHQW¶ IRU res judicata SXUSRVHV´ GLUHFWLRQIURPWKH&LUFXLWWRWKHFRQWUDU\LWDSSHDUVDSSURSULDWHWRDSSO\WKHUXOHWKDWZRXOGDSSO\ WRRWKHUQRQFRUHFODLPV +HUHDOWKRXJKWKHEDQNUXSWF\FRXUWFRXOGQRWKDYHLVVXHGDILQDOMXGJPHQWRQSODLQWLIIV¶ QRQFRUHRUStern FODLPVZLWKRXWWKHSDUWLHV¶FRQVHQWsee Wellness Int’l6&WDW± SODLQWLIIVFRXOGKDYHEURXJKWWKHLUFXUUHQWFODLPVLQWKHEDQNUXSWF\SURFHHGLQJ Stern86 DW7KHEDQNUXSWF\FRXUWZRXOGKDYHWKHQLVVXHGDILQDOMXGJPHQWLIWKHSDUWLHVKDGFRQVHQWHG RULWZRXOGKDYHVXEPLWWHGSURSRVHGILQGLQJVRIIDFWDQGFRQFOXVLRQVRIODZWRWKHGLVWULFWFRXUW DQGWKHGLVWULFWFRXUWZRXOGKDYHUHQGHUHGDILQDOMXGJPHQWDVSDUWRIWKDWSURFHHGLQJSee id.DW Exec. Benefits6&WDW86&F±7KHEDQNUXSWF\ FRXUWZDVWKHUHIRUHDFRXUWRIFRPSHWHQWMXULVGLFWLRQDVWRDOORISODLQWLIIV¶FODLPVDQGWKLVODVW HOHPHQWRIres judicata LVVDWLVILHG 7KH&RXUWGRHVQRWQHHGWRGHFLGHZKHWKHUSODLQWLIIV¶SUHVHQWFODLPVZRXOGKDYHEHHQFRUH RUQRQFRUHSURFHHGLQJVEHFDXVHLWLVXOWLPDWHO\LUUHOHYDQWWRWKHDSSOLFDWLRQRIres judicata See Plotner)GDWH[SODLQLQJWKDWWKHFRXUWGLGQRWKDYHWRGHFLGHZKHWKHUFODLPVZHUH FRUHRUQRQFRUHEHFDXVH³WKDWGHWHUPLQDWLRQKDVQRHIIHFWRQWKHGLVSRVLWLYHLVVXHRIUHVMXGLFDWD´ +RZHYHULWGRHVDSSHDUWKDWSODLQWLIIV¶FODLPVZRXOGEHFDWHJRUL]HGDVHLWKHUQRQFRUHFODLPVRU Stern FODLPVSee Stern86DW±ILQGLQJDFRXQWHUFODLPIRUWRUWLRXVLQWHUIHUHQFHZDV QRWD³FRUH´FODLPDQGEHFDPHDStern FODLPVan Dorn Retail Mgmt., Inc. v. Sovran Bank/DC Nat’l, Inc.1R:/DW Q''&2FW³,WKDVKRZHYHUEHHQ JHQHUDOO\HVWDEOLVKHGWKDWFODLPVRIEUHDFKRIFRQWUDFWDQGFRQYHUVLRQDUHFRQVLGHUHGµQRQFRUH¶ SURFHHGLQJVDQGWKXVUHPRYHGIURPWKHEDQNUXSWF\FRXUW¶VMXULVGLFWLRQ´ &21&/86,21 7KH&RXUWILQGVWKDWSODLQWLIIV¶FRPSODLQWLVEDUUHGE\WKHGRFWULQHRIres judicataVRLWZLOO JUDQWGHIHQGDQWV¶PRWLRQWRGLVPLVVXQGHU5XOHE$VHSDUDWHRUGHUZLOOLVVXH $0<%(50$1-$&.621 8QLWHG6WDWHV'LVWULFW-XGJH '$7(1RYHPEHU