Noel, Darlene v. EAN Holdings, LLC

7(11(66((%85($82):25.(56¶&203(16$7,21 :25.(56¶&203(16$7,21$33($/6%2$5' +($5'$8*867$70(03+,6    'DUOHQH1RHO 'RFNHW1R   Y    6WDWH)LOH1R ($1+ROGLQJV//&HWDO         $SSHDOIURPWKH&RXUWRI:RUNHUV¶  &RPSHQVDWLRQ&ODLPV  $OOHQ3KLOOLSV-XGJH    $IILUPHGDQG5HPDQGHG±)LOHG6HSWHPEHU  ,QWKLVVHFRQGLQWHUORFXWRU\DSSHDOLQWKLVFDVHWKHHPSOR\HUDVVHUWVWKHWULDOFRXUWHUUHG LQ GHQ\LQJ LWV PRWLRQ WR WHUPLQDWH DXWKRUL]HG PHGLFDO WUHDWPHQW  (PSOR\HU IXUWKHU DUJXHVWKDWLWVPRWLRQVXSSRUWHGE\PHGLFDOUHFRUGVIURPWZRDXWKRUL]HGSK\VLFLDQVDQG D FRPSOHWHG TXHVWLRQQDLUH IURPRQHRI WKHSK\VLFLDQV ZDV XQRSSRVHG DQGVKRXOGKDYH EHHQJUDQWHGDVDPDWWHURIFRXUVH8SRQFDUHIXOFRQVLGHUDWLRQRIWKHUHFRUGZHDIILUP WKH WULDO FRXUW¶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³(PSOR\HH´  ZKLOH VKH ZRUNHG IRU ($1 +ROGLQJV //& ³(PSOR\HU´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¶V FRQVLGHUDWLRQ RI WKH VLJQHG PHGLFDO UHFRUGV RU RIIHU DQ\FRXQWHUYDLOLQJPHGLFDOHYLGHQFH&RQVHTXHQWO\WKHWULDOFRXUWFRQVLGHUHGWKHPRWLRQ XQRSSRVHG   )ROORZLQJDUHYLHZRIWKHUHFRUGZLWKRXWDQHYLGHQWLDU\KHDULQJsee7HQQ&RGH $QQ †  G   WKH WULDO FRXUW GHQLHG (PSOR\HU¶V PRWLRQ FRQFOXGLQJ LW ZDV ³LQDSSURSULDWHWRDGGUHVVWKHPHULWVRIWKHWUHDWLQJGRFWRUV¶RSLQLRQVLQDPRWLRQKHDULQJ DQG SRVVLEO\ µPRGLI\¶ LWV LQWHUORFXWRU\ RUGHU´  7KH WULDO FRXUW IXUWKHU UHDVRQHG WKDW ³GLVFRYHU\LVLQFRPSOHWHDQGWKHSDUWLHVKDYH\HWWRXQGHUWDNHPHGLFDOSURRI>ERWKRI@ ZKLFKDUHUHTXLUHGIRUWKH&RXUWWRDGMXGLFDWHWKHFODLPRQLWVPHULWV´)LQDOO\WKHWULDO FRXUWQRWHGWKDW³>W@RSURFHHGYLDDPRWLRQZRXOGJUDIWXSRQWKHUXOHVRIWKLV&RXUWZKDW DPRXQWV WR D VXPPDU\ MXGJPHQW SURFHHGLQJ RQ D FODLP GHHPHG FRPSHQVDEOH DW DQ H[SHGLWHG KHDULQJ ZKHQ RQO\ GHQLHG FODLPV DUH DPHQDEOH WR VXFKPRWLRQV´  (PSOR\HU KDVDSSHDOHG  6WDQGDUGRI5HYLHZ  7KH VWDQGDUG ZH DSSO\ LQ UHYLHZLQJ D WULDO FRXUW¶V GHFLVLRQ SUHVXPHV WKDW WKH FRXUW¶VIDFWXDOILQGLQJVDUHFRUUHFWXQOHVVWKHSUHSRQGHUDQFHRIWKHHYLGHQFHLVRWKHUZLVH See 7HQQ &RGH $QQ †  F     ³7KHUH VKDOO EH D SUHVXPSWLRQ WKDW WKH ILQGLQJV DQG FRQFOXVLRQV RI WKH ZRUNHUV¶ FRPSHQVDWLRQ MXGJH DUH FRUUHFW XQOHVV WKH SUHSRQGHUDQFHRIWKHHYLGHQFHLVRWKHUZLVH´ +RZHYHUZHUHYLHZTXHVWLRQVRIODZde novo ZLWK QR SUHVXPSWLRQ RI FRUUHFWQHVV  See Am. Mining Ins. Co. v. Campbell 1R 06&5:&7HQQ/(;,6DW  7HQQ:RUNHUV¶&RPS3DQHO 'HF  ³$WULDOFRXUW¶VFRQFOXVLRQVRIODZDUHUHYLHZHGde novoXSRQWKHUHFRUG ZLWK QR SUHVXPSWLRQ RI FRUUHFWQHVV´   0RUHRYHU WKH LQWHUSUHWDWLRQ DQG DSSOLFDWLRQ RI VWDWXWHV DQG UHJXODWLRQV FRQFHUQV LVVXHV RI ODZ ZKLFK ZH UHYLHZ de novo ZLWK QR SUHVXPSWLRQ RI FRUUHFWQHVV DIIRUGHG WR WKH WULDO FRXUW¶V ILQGLQJV  See Seiber v. Reeves   See Noel v. EAN Holdings, LLC1RVDQG71:UN&RPS$SS%G /(;,6 7HQQ:RUNHUV¶&RPS$SS%G-DQ    Logging  6:G   7HQQ   Hadzic v. Averitt Express 1R  71:UN&RPS$SS%G/(;,6DW  7HQQ:RUNHUV¶&RPS$SS%G 0D\   $QDO\VLV   +HDULQJV RI LQWHUORFXWRU\ GLVSXWHV DUH JRYHUQHG E\ 7HQQHVVHH &RGH $QQRWDWHG VHFWLRQ G ZKLFKVWDWHVDVIROORZV  8SRQPRWLRQof either partyPDGHDWDQ\WLPHDIWHUDGLVSXWHFHUWLILFDWLRQ QRWLFH KDV EHHQ LVVXHG E\ D ZRUNHUV¶ FRPSHQVDWLRQ PHGLDWRU D ZRUNHUV¶ FRPSHQVDWLRQ MXGJH PD\ DW WKH MXGJH¶V GLVFUHWLRQ KHDU GLVSXWHV RYHU LVVXHVSURYLGHGLQWKHGLVSXWHFHUWLILFDWLRQQRWLFHFRQFHUQLQJWKHSURYLVLRQ RIWHPSRUDU\GLVDELOLW\or medical benefitsRQDQH[SHGLWHGEDVLVDQGHQWHU DQ LQWHUORFXWRU\ RUGHU XSRQ GHWHUPLQLQJ WKDW WKH LQMXUHG HPSOR\HH ZRXOG likely prevail DWDKHDULQJRQWKHPHULWV  7HQQ&RGH$QQ† G   HPSKDVLVDGGHG 7KXVLQFRQVLGHULQJDPRWLRQILOHG E\ HLWKHU SDUW\ VHHNLQJ LQWHUORFXWRU\ UHOLHI SULRU WR WKH RFFXUUHQFH RI D FRPSHQVDWLRQ KHDULQJ D WULDO FRXUW PXVW GHWHUPLQH ZKHWKHU WKH HPSOR\HH LV OLNHO\ WR SUHYDLO RQ WKDW LVVXHDWWULDO   )XUWKHUPRUH7HQQ&RPS5 5HJV  JRYHUQVWKHPDQQHU LQZKLFKH[SHGLWHGKHDULQJVDUHFRQGXFWHG3DUDJUDSK  GLVFXVVHVWKHILOLQJRIUHTXHVWV IRU H[SHGLWHG KHDULQJV E\ ³HLWKHU SDUW\´  3DUDJUDSK  E  UHTXLUHV D SDUW\ RSSRVLQJ D PRWLRQWR³VXEPLWDOOGRFXPHQWVGHPRQVWUDWLQJWKHPRYLQJSDUW\LVQRWHQWLWOHGWRWKH UHTXHVWHG UHOLHI QR ODWHU WKDQ WHQ   EXVLQHVV GD\V EHIRUH WKH GDWH RI WKH H[SHGLWHG KHDULQJ´,QWKHHYHQWWKHFRXUWHOHFWVWRUHVROYHWKHPRWLRQZLWKRXWDKHDULQJ³WKHFOHUN VKDOODOVRVHQGLQIRUPDWLRQWRWKHSDUWLHVGHWDLOLQJWKHDFWLRQVUHTXLUHGWRSUHVHQWWKHFDVH WRWKHMXGJHIRUDGHFLVLRQRQWKHUHFRUG´7HQQ&RPS5 5HJV  I  ,Q DGGLWLRQ SDUDJUDSK   SURYLGHV WKDW DW DQ H[SHGLWHG KHDULQJ ³OHWWHUV RU ZULWWHQ VWDWHPHQWV DGGUHVVLQJ PHGLFDO FDXVDWLRQ WKDW KDYH EHHQ VLJQHG E\ D GRFWRU VKDOO EH DGPLVVLEOHHYLGHQFH´7HQQ&RPS5 5HJV     ,Q DGGLWLRQ SDUDJUDSK   RI WKDW UHJXODWLRQ GLVFXVVHV FLUFXPVWDQFHV LQ ZKLFK D SDUW\PD\HOHFWWRILOHDPRWLRQIRUVXPPDU\MXGJPHQWIROORZLQJDQH[SHGLWHGKHDULQJDW ZKLFKWKHWULDOFRXUWGHQLHGEHQHILWV³RQWKHJURXQGVRIFRPSHQVDELOLW\´7HQQ&RPS 5  5HJV     ³,I WKH GHQLDO RQ WKH JURXQGV RI FRPSHQVDELOLW\ LV DIILUPHGE\WKHDSSHDOVERDUGRULIQRDSSHDOLVWDNHQWKHHPSOR\HUmayILOHDPRWLRQIRU VXPPDU\ MXGJPHQW    ´  Id. HPSKDVLV DGGHG   7KXV ZKLOH WKLV UXOH GHVFULEHV SDUWLFXODU FLUFXPVWDQFHV LQ ZKLFK D SDUW\ may choose WR ILOH D PRWLRQ IRU VXPPDU\ MXGJPHQWLWGRHVQRWUHVWULFWWKHILOLQJRIPRWLRQVIRUVXPPDU\MXGJPHQWRUDQ\RWKHU   PRWLRQVDVPD\EHDOORZHGE\5XOHRIWKH7HQQHVVHH5XOHVRI&LYLO3URFHGXUHRUDQ\ RWKHUDSSOLFDEOHVWDWXWHVRUUXOHV   ,QLWVRUGHUWKHWULDOFRXUWFRQFOXGHGWKDWLWZDVXQDEOHWRHQWHUWDLQ³ZKDWDPRXQWV WRDVXPPDU\MXGJPHQWSURFHHGLQJ´EHFDXVHSXUVXDQWWR7HQQ&RPS5 5HJV   VXPPDU\MXGJPHQWPRWLRQVFDQRQO\EHILOHGLQFLUFXPVWDQFHVZKHUHDWULDO FRXUW KDV SUHYLRXVO\ GHQLHG DQ HPSOR\HH¶V FODLP DW D SULRU H[SHGLWHG KHDULQJ  :H GLVDJUHH ZLWK WKLV UHVWULFWLYH LQWHUSUHWDWLRQ RI WKH UHJXODWLRQ ZKHQ UHDG LQ FRQMXQFWLRQ ZLWK 5XOH  RI WKH 7HQQHVVHH 5XOHV RI &LYLO 3URFHGXUH  ,QVWHDG ZH FRQFOXGH WKDW SDUWLHVZKRFKRRVHWRVHHNUHOLHIIURPWKHFRXUWSULRUWRDWULDOKDYHVHYHUDOFKRLFHV2QH RSWLRQ LV WR ILOH DQ LQWHUORFXWRU\ PRWLRQ DV GHVFULEHG LQ 7HQQHVVHH &RGH $QQRWDWHG VHFWLRQ G DQG7HQQ&RPS5 5HJV  $QRWKHURSWLRQLV WR ILOH D PRWLRQ IRU VXPPDU\ MXGJPHQW ³DW DQ\ WLPH DIWHU WKH H[SLUDWLRQ RI WKLUW\   GD\VIURPWKHFRPPHQFHPHQWRIWKHDFWLRQ´7HQQ5&LY30RUHRYHUDVZH SUHYLRXVO\ VWDWHG D WULDO FRXUW KDV EURDG GLVFUHWLRQ WR FRQWURO WKH SDFH RI OLWLJDWLRQ DQG VKRXOG ³JLYH HDFK VLGH D UHDVRQDEOH DQG PHDQLQJIXO RSSRUWXQLW\´ WR SUHSDUH LWV FDVH EHIRUHVHWWLQJDQ\VXFKPRWLRQIRUDKHDULQJHollis v. Komyo Am.1R 71:UN&RPS$SS%G/(;,6DW  7HQQ:RUNHUV¶&RPS$SS%G0DU     8SRQFRQVLGHUDWLRQRIWKHIRUHJRLQJZHFRQFOXGH(PSOR\HU¶VPRWLRQWRWHUPLQDWH PHGLFDO EHQHILWV IDOOV ZLWKLQ WKH VFRSH RI 7HQQHVVHH &RGH $QQRWDWHG VHFWLRQ   G   DQG 7HQQ &RPS 5  5HJV     ,W ZDV QRW D PRWLRQ IRU SDUWLDO VXPPDU\ MXGJPHQW SXUVXDQW WR7HQQ 5&LY3  DV VXJJHVWHG E\ WKH WULDO FRXUWEXWZDVLQVWHDGDUHTXHVWIRULQWHUORFXWRU\UHOLHIDQGVKRXOGKDYHEHHQHYDOXDWHGLQ OLJKWRIWKHVWDQGDUGIRUH[SHGLWHGKHDULQJVPDQGDWHGE\VHFWLRQ G     1HYHUWKHOHVV ZH FRQFOXGH WKDW WKH WULDO FRXUW¶V HUURU LQ QRW WUHDWLQJ (PSOR\HU¶V PRWLRQDVDUHTXHVWIRULQWHUORFXWRU\UHOLHISXUVXDQWWR7HQQHVVHH&RGH$QQRWDWHGVHFWLRQ  G  ZDV KDUPOHVV XQGHU WKH FLUFXPVWDQFHV SUHVHQWHG LQ WKLV FDVH DQG WKDW WKH WULDOFRXUWGLGQRWHUULQGHQ\LQJ(PSOR\HU¶VPRWLRQ)LUVW(PSOR\HU¶VDUJXPHQWWKDWDQ XQRSSRVHG PRWLRQ PXVW EH JUDQWHG DV D PDWWHU RI FRXUVH LV LQFRUUHFW  :H KDYH SUHYLRXVO\ H[SODLQHG WKDW ³>Q@HLWKHU 5XOH  %  >RI WKH WULDO FRXUW¶V 3UDFWLFHV DQG 3URFHGXUHV@QRUDQ\RWKHUDSSOLFDEOHUXOHSURKLELWVDWULDOFRXUWIURPGHFLGLQJPRWLRQVRQ WKHLU PHULWV  /LNHZLVH WKH %XUHDX V UHJXODWLRQV GR QRW SURKLELW D WULDO FRXUW IURP FRQVLGHULQJWKHPHULWVRIDQXQRSSRVHGPRWLRQ´Valladares v. Transco Prods., Inc.1R  DQG   71 :UN &RPS $SS %G /(;,6  DW  7HQQ:RUNHUV¶&RPS$SS%G-XO\ 7KLVLVQRWWRVXJJHVWKRZHYHUWKDWD WULDO FRXUW FDQQRW FRQVLGHU WKH IDFW WKDW D PRWLRQ LV XQRSSRVHG LQ GHFLGLQJ ZKHWKHU WR JUDQWRUGHQ\WKHPRWLRQ7KXVDSDUW\DFWVDWLWVSHULOZKHQHOHFWLQJQRWWRUHVSRQGWRD SDUW\¶VUHTXHVWIRUDWULDOFRXUWWRWDNHVRPHDFWLRQ     6HFRQGWKHPHGLFDOUHFRUGVDQGTXHVWLRQQDLUHUHVSRQVHVSURYLGHGE\(PSOR\HULQ VXSSRUWRILWVPRWLRQZHUHHTXLYRFDODVWRWKHQHHGIRUDGGLWLRQDOPHGLFDOWUHDWPHQW'U 1DGHO¶V 0DUFK  UHSRUW WKH PRVW UHFHQW PHGLFDO UHSRUW FRQWDLQHG LQ WKH UHFRUG LQGLFDWHG (PSOR\HH ZDV EHQHILWWLQJ IURP SK\VLFDO WKHUDS\ DQG KH UHFRPPHQGHG DGGLWLRQDOWKHUDS\DWWKDWWLPH+HDOVRFKDQJHG(PSOR\HH¶VPHGLFDWLRQV)XUWKHUPRUH DOWKRXJK 'U 1DGHO LQGLFDWHG LQ UHVSRQVH WR (PSOR\HU¶V TXHVWLRQQDLUH WKDW (PSOR\HH¶V FRQGLWLRQZDVQRWOLNHO\WKHUHVXOWRIDZRUNUHODWHGDFFLGHQWKHFODULILHGWKLVUHVSRQVH E\ZULWLQJ³>V@KHPD\KDYHKDGVRPH>LQFUHDVHLQ@SDLQ>DQG@LQMXU\VXSHULPSRVHGRQD FKURQLFSUREOHP´7KXV(PSOR\HUGLGQRWHVWDEOLVKDWWKLVLQWHUORFXWRU\VWDJHRIWKHFDVH WKDWLWZDVOLNHO\WRSUHYDLODWWULDOLQSURYLQJ(PSOR\HHKDVQRQHHGIRUUHDVRQDEOHDQG QHFHVVDU\IXWXUHPHGLFDOFDUHFDXVDOO\UHODWHGWRWKHZRUNDFFLGHQWV  &RQFOXVLRQ   %DVHGRQWKHIRUHJRLQJZHDIILUPWKHWULDOFRXUW¶VRUGHUDQGUHPDQGWKHFDVHIRU DQ\IXUWKHUSURFHHGLQJVWKDWPD\EHQHFHVVDU\   7(11(66((%85($82):25.(56¶&203(16$7,21 1 :25.(56¶&203(16$7,21$33($/6%2$5' 'DUOHQH1RHO 'RFNHW1R   Y  6WDWH)LOH1R   ($1+ROGLQJV//&HWDO &(57,),&$7(2)6(59,&( , KHUHE\ FHUWLI\ WKDW D WUXH DQG FRUUHFW FRS\ RI WKH $SSHDOV %RDUG¶V GHFLVLRQ LQ WKH UHIHUHQFHGFDVHZDVVHQWWRWKHIROORZLQJUHFLSLHQWVE\WKHIROORZLQJPHWKRGVRIVHUYLFH RQWKLVWKHWKGD\RI6HSWHPEHU 1DPH &HUWLILHG )LUVW&ODVV 9LD )D[ 9LD (PDLO$GGUHVV 0DLO 0DLO )D[ 1XPEHU (PDLO &KULVWRSKHU/7D\ORU ; FWD\ORU#WD\ORUWRRQFRP $OH[%0RUULVRQ ; DEPRUULVRQ#PLMVFRP $OOHQ3KLOOLSV-XGJH ; 9LD(OHFWURQLF0DLO .HQQHWK06ZLW]HU ; 9LD(OHFWURQLF0DLO &KLHI-XGJH 3HQQ\6KUXP&OHUN ; 3HQQ\3DWWHUVRQ6KUXP#WQJRY &RXUWRI:RUNHUV¶ &RPSHQVDWLRQ&ODLPV -HDQHWWH%DLUG -HDQHWWH%DLUG &OHUN:RUNHUV¶&RPSHQVDWLRQ$SSHDOV%RDUG )UHQFK/DQGLQJ'U6WH% 1DVKYLOOH71 7HOHSKRQH (OHFWURQLF0DLO:&$SSHDOV&OHUN#WQJRY