!
"#"
$%!&'(!)%$&(*!+&,&(+!*$+&-$.&!./)-&!
0/-!&'(!%/-&'(-%!*$+&-$.&!/0!&(1,+!
*,22,+!*$3$+$/%!
!
%(&+4'(-(5!$%.65!! ! ! 7!
8,%$2,!$%*)+&-$(+5!$%.65!9:;!! 7!
8)%$+'!<-$+',%5!! ! ! 7!!
4=9>:?>@@A6!! ! ! ! ! ! ! ! ! ! 7!
!7!.>B>=!,C?>D:!%D6!E"FG.3FGHH"0!
!B6!! 7!!
!7!!
I(00-(J!K,-/%5!9:;! ! ! 7! !
/%*/3,!2$8$&(*!./84,%J5! ! 7!
!*L@L:;9:?A6!!!!!7!
!
!"#$%&"'()*+%*,(+*(-+./('*).%,(,.)"(-.&"-(0",'%,1(
.00".&($%&"'(0"!(2*3!+(*!'"!(
!
&/!&'(!'/%/-,K2(!I)*M(!-/J,2!0)-M(+/%N!
./8(+!%/O!I(00!K,-/%5!9:;!@>=LA5!PQRAQ9:?!?D!?SL!/R;LR!D@!?S>A!.DQR?!
9:;!;>RLC?>BL!D@!?SL!.DQR?TA!29U!.=LRV!WDBLA!?S>A!.DQR?!?D!>WWL;>9?L=X!>AAQL!D@!9!
A?9X!;9?L!?D!PRLBL:?!?SL!A9=L!D@!?SL!;DW9>:A!PL:;>:Y!9PPL9=!9A!?S>A!'D:DR9Z=L!.DQR?!
9;B>AL;!UDQ=;!ZL!;D:L6!![*DC!\E#]6!
#6! &S>A!'D:DR9Z=L!.DQR?!S9A!DR;LRL;!?S9?!9:X!WD?>D:A!@>=L;!D:!ZLS9=@!D@!K9RD:!
ZL!@>=L;!9A!WD?>D:A!@DR!=L9BL6!!
^6! &SL!;DW9>:!:9WLA!9RL!Q:>_QL5!9:;!>@!=DA?!?SRDQYS!A9=LA!?SL!;9W9YL!UDQ=;!
ZL!>RRLP9R9Z=L6!+SLRW9:!9:;!3D Y L = ! S 9 B L ! ? 9 V L : ! ? S L ! P D A > ? > D : ! ? S 9 ? ! A 9 = L ! D @ ! ; D W 9 > : A ! 9 R L !
:D:"9PPL9=9Z=L6!!$@!?S9?!>A!CDRRLC?5!9==DU>:Y!?SL!A9=LA!D@!Q:>_QL!:9WLA!URD:Y@Q==X!
UDQ=;! ZL! >RRLP9R9Z=L6! ! &S9?! >A! ZLC9QAL!D:CL!9:!9AAL?!>A!AD=;5!W>YS?!:D?!ZL!
AQZAL_QL:?=X! RLA?DRL;! 9:;! 9PPL9=! W>YS?!ZL!W9;L!WDD?!9A!+SLRW9:!9:;!3DYL=!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 1 of 27 PageID 41348
!
"^"
9RYQL6!See, e.g,. American Grain Ass'n v. Lee-Vac, Ltd.5!\EF!06^;!^`a5!^`b!ca?S!.>R6!
#GHFd6!!,;;>?>D:9==X5!?SLRL!>A!:D!P9R?X!U>?S!AQ@@>C>L:?!9AAL?A!?D!CDBLR!?SL!=DAA!ASDQ=;!
?SL!A9=LA!ZL!@DQ:;!?D!ZL!URD:Y@Q=6!
E6! 0DR! @QR?SLR! C9QAL5! ?SL! 9RYQWL:?! D@! 9PPL==9?L! ZR>L@>:Y! >A! 9??9CSL;! SLRL?D! 9A!
(eS>Z>?A!f,g!9:;!fKg!9:;!>:CDRPDR9?L;!SLRL>:!ZX!RL@LRL:CL6!
`6! 0DR!@QR?SLR!C9QAL!WDB9:?!ASDUAN!
!
+.4&"(*$(2*,+",+-(
+.4&"(*$(2*,+",+-55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 6!
$789:7;(478<=>?:@A(?B(9CD(&EF:EA79E?@(7@A()7GGEHD(-8?ID 5555555555555555555555555555555555555555555555555555555 J!
/BLRB>LU666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666 `!
&SL!8D?>D:!?D!2>_Q>;9?L!U9A!0Q:C?>D:9==X!Ex Parte 9:;!MR9:?L;!U>?SDQ?!
'L9R>:Y666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666 a
!
.>=:KD@9(L(.:9C?>E9EDG 55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 M!
,+! ,! 8,&&(-! /0! (+&,K2$+'(*! 2,O5! &'(! *$+&-$.&! ./)-&!
2,.<+!+)KI(.&!8,&&(-! I)-$+*$.&$/%!/3(-!&'(!,++(&+! /0!
%/3/!4/$%&!22.!,%*!h),%&(.!22. 6666666666666666666666666666666666666666666666666666666666666 \
!
N5(+CD>D( ):G9( $E>G9( OD( 7( 2?@9>?HD>GP( 0;DA( 4DB?>D(9CD( 2?:>9(2?@8D>@E@=(
9CD(-:OQD89()799D> 5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 M!
65(Cochrane v. WF Potts Son & Co.R(JS($56A(NT6M(UV9C(2E>5(NWXNY 555555555555555555555555 S!
+((<$%M! &/! )+(! %/3/! 4/$%&5! 22.! ,%*! h),%&(.5! 22.!
,++(&+!&/!4,J!/00!%/%"I)*M8(%&!*(K&+!,22(M(*!,M,$%+&!
/&'(-!4,-&$(+!$+!%/&!,)&'/-$i(*!KJ!2,O6666666666666666666666666666666666666666666666 H
!
4?;;?>D(-.(H5(%KI?>9(Z7>DC?:GDR(%@8555555555555555555555555555555555555555555555555555555555555555555555 [!
&'(! -(h)$-(8(%&+! /0! ^H! )6+6.6! ^FF#!,442J!&/!4(-+/%,2&J!
4)-+),%&!&/!^H!)6+6.6!^FF`6 6666666666666666666666666666666666666666666666666666666666666666666666666666 #F
!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 2 of 27 PageID 41349
!
"E"
$&! $+! 4,&(%&2J! )%-(,+/%,K2(! %/&! &/! (%M,M(! $%! ,%J!
8,-<(&$%M!(00/-&+!O$&'!-(+4(.&!&/!&'(!*/8,$%!%,8(+!
+/)M'&!&/!K(!2$h)$*,&(*66666666666666666666666666666666666666666666666666666666666666666666666666666#F
!
8-6! %(2+/%T+! +/)-.(! 0/-! ! j,44-,$+,2+T! ! ! ,%*!
8(&'/*/2/MJ! 0/-! *(&(-8$%$%M! */8,$%! 3,2)(! $+! %/&!
-(2$,K2(!%/-!-(,+/%,K2( 66666666666666666666666666666666666666666666666666666666666666666666666666 ##
!
&'(! /-*(-+! M-,%&$%M! &'(! -(.($3(-T+! 0((+! ,-(!
(--/%(/)+ 6666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666 #a
!
&78<(?B(-:OQD89()799D>(\:>EGAE89E?@ 555555555555555555555555555555555555555555555555555555555555555555555 NV!
!D8DEHD>GCEI($DDG(3@7:9C?>E]DA5555555555555555555555555555555555555555555555555555555555555555555555555555 NM!
3@8;D7@(^7@AG 55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 NS!
$DD(._7>A(_7G(,?9($?>(.89:7;(-D>HE8DG(9?(4D@DBE9(?B(&&2G555555555555555555555555555555 NW!
,?(^D7>E@=(_7G(^D;A(?@(9CD(2?@9DG9DA($DD(.II;E879E?@G55555555555555555555555555555555555 NW!
$DDG(">>?@D?:G;P(._7>ADA(B?>(Z?><(?@(.('EBBD>D@9(!D8DEHD>GCEI("G979D5555555 6T!
+CD($EB9C(.KD@AKD@9(`:DG9E?@ 5555555555555555555555555555555555555555555555555555555555555555555555555555 66!
-97@A7>A(E@(1>7@9E@=(-97P(0D@AE@=(.IID7; 55555555555555555555555555555555555555555555555555555555555555555555555555555555 6V!
2*,2&3-%*, 555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 6M!
2"!+%$%2.+"(*$(-"!a%2"55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 6S!
2"!+%$%2.+"(*$(2*,$"!",2"5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 6S!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 3 of 27 PageID 41350
!
"`"
/? : >( ^ ? @? >( D @ 9D >DA ( 7 @ ( .A HE G? >P ( 9 ? ( 9 CE G( ^ ? @? >7 O; D( 2 ?: > 9( G 97 9E @=! 9C79( EB( 9CD(
G97P( _7G(;EB9DAR( JDQR! 'D:DR! UDQ=;! YR9:?! ?SL ! WD ?>D : A!?D!=>_Q>;9?L!?SL!9AAL?A!9:;(
b_?:;A( G97P( ?>AD>G( 8?@8D>@E@=( 9CD( G7;D( ?B( A?K7E@( @7KDG( 7@A( ?>AD>G(
8?@8D>@E@=(BDDG(9?(OD(I7EA(9?(9CD(47>?@(799?>@DPG(ID@AE@=(7IID7;c5!!!!'DULBLR5!
>:A?L9;!D@!;D>:Y!?S9?!?SL!*>A?R>C?!.DQR?!S9A!DR;LRL;!?SL!=>_Q>;9?>D:!D@!?SL!;DW9>:!
:9WL!9AAL?A!9:;!immediate P9XWL:?!?D!3DYL=!9:;!@>RW6!
!&SLRL! 9RL! :D
!Le>YL:?!C>RCQWA?9:CLA!RL_Q>R>:Y! ?S9?! ?SL! A9=LA! DCCQR!
>WWL;>9?L=X! 9:;5! YR9:?>:Y! 9:! LWLRYL:CX! A?9X! >A! :LCLAA9RX! ?D! PRD?LC?! ?SL!
kQR>A;>C?>D:! D@! ?S>A! 'D:DR9Z=L! .DQR?! DBLR! ?SL! RLCL>BLRAS>P! RLA! CQRRL:?=X! >:! ?SL!
PDAALAA>D:!D@!?S>A!'D:DR9Z=L!.DQR?6!!
$789:7;(478<=>?:@A(?B(9CD(&EF:EA79E?@(7@A()7GGEHD(-8?ID
(
*HD>HED_(
$?!>A!Q:V:DU:!c9A!3DYL=!S9A!VLP?!?SL!W9??LR!ALCRL?d!US>CS!;DW9>:A!9C?Q9==X!
W9VL!QP!?SL!jZ>Y!aFT!3DYL=!ALLVA!?D!=>_Q>;9?L5!DR!>@!?SL!ZQXLRA!S9BL!9YRLL;!?D!=9?LR!
AP=>?!?SL!PRD@>?A!U>?S!%L=AD:!9:;lDR!3DYL=!c9A!?SL!ZQXLRAT!>;L:?>?>LA!S9BL!9=AD!ZLL:!
VLP?! ALCRL?! ZX! 3DYL=d6! ! 'DULBLR5(E9(7IID7>G(9C79(a?=D;(EG(GDD<E@=(9?(GD;;(9C?GD(
A?K7E@(@7KDG(_C?GD(H7;:DG(Dd8DDA(*@D()E;;E?@('?;;7>G(ID>(A?K7E@
6!!&SQA5!?SL!
A9=LA!ADQYS?!ZX!3DYL=!CDQ=;!CD:A?>?Q?L!9!=>_Q>;9?>D:!D@!9A!WQCS!9A!Gam!D@!?SL!?D?9=!
B9=QL!D@!22.!9AAL?An!9!=>_Q>;9?>D:!D@!o\F!8>==>D:!cDR!WDRLd!>:!9AAL?A6!!!,?97O;PR(
9CD(per domain(K7><D9(H7;:D(E@(Dd8DGG(?B(?@D(KE;;E?@('?;;7>G(per domainR(C7G(
ODD@(7AKE99DA(OP(-CD>K7@e!+SLRW9:!S9A!LeP=9>:L;!?S9?!f&SLAL!:9WLA!S9BL!ZD?S!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 4 of 27 PageID 41351
!
"a"
S>YS!RLBL:QL!PD?L:?>9=!9:;!C9:!ZL!AD=;!>:;>B>;Q9==X!"!ADWL?>WLA!@DR!E@(Dd8DGG(?B(fN(
KE;;E?@(7(IED8D
6g!!-6!^\Hb!c=>:LA!#F"##d6!
!!$:!D?SLR!UDR;A5!>?!9PPL9RA!?S9?!3DYL=!>A!9??LWP?>:Y!?D!=>_Q>;9?L!?SL!jZ>Y!aFT!
;DW9>:! :9WLA! ?S9?! C9:! ZL! AD=;! >:;>B>;Q9==X! >:! LeCLAA! D@! o#! W>==>D:! a piece5! @DR!
D:=X! 9RDQ:;! o#! W>==>D:! >:! ?D?9=6! ! &S9?! UDQ=;! =L9BL! GG6Gm! D@! ?SL! ;DW9>:! :9WLA!
>:?9C?! :QWLR>C9==X6! 'DULBLR5! ?SL! B9A?! ZQ=V! D@! ;DW9>:! :9WLA! 9RL! B9=QL;! 9?! D:=X!
ZL?ULL:! oaF6FF! 9:;! o\FF6FF! c9A! CDWP9RL;! ?D! ?SL! o#! 8>==>D:! ?D! o`! 8>==>D:! PLR!
;DW9>:! B9=Q9?>D:! D@! ?SL! jZ>Y! B9=QLT! ;DW9>:Ad6! !,CCDR;>:Y=X5! 3DYL=! >A! 9PP9RL:?=X!
ALLV>:Y!?D! ALCRL?=X
!=>_Q>;9?L!QP!?D!HF"Gam!D@!?SL!B9=QL!D@!?SL!22.AT!9AAL?An!E@(
I>EH79D(G7;DG(U79(fT5T6(8D@9G(?@(9CD('?;;7>Y(9?(CEG(C7@A#IE8<DA(O:PD>G6!
(
+CD( )?9E?@( 9?( &EF:EA79D( _7G( $:@89E?@7;;P( Ex Parte 7@A( 1>7@9DA( _E9C?:9(
^D7>E@=(
$:! 9! BLRX! Q:QAQ9=! PRDCLAA5! ?SL! @Q:;9WL:?9=! DPLR9?>BL! >:@DRW9?>D:! 9ZDQ?!
3D Y L = TA ! W D ? > D : ! ? D ! = > _ Q > ; 9 ? L ! U L R L ! V L P ? ! A LCRL?6!! 0DR! Le9WP=L5! ?SL! 22.A!S9BL! ZLL:!
VLP?! >:! ?SL! ;9RV! 9A! ?D! ?SL! >:;>B>;Q9=! ;DW9>:! :9WLA! PRDPDAL;! ?D! ZL! AD=;n! c#d!
PRLBL:?>:Y!?SL!P9R?>LA!@RDW!AD=>C>?>:Y!9:!9=?LR:9?>BL!PQRCS9ALR!@DR!WDRL!WD:LX!9:;!
c^d!PRLBL:?>:Y!?SL!P9R?>LA!@RDW!RLAL9RCS>:Y!9:;!Y9?SLR>:Y!LB>;L:CL!?D!LA?9Z=>AS!?SL!
W9RVL?! B9=QL! D@! ?SL! ;DW9>:A! >:! _QLA?>D:6! !&SL!22.A!S9BL!ZLL:!9=AD!VLP?!>:!?SL!
;9RV!9ZDQ?!?SL!A9=LA!PR>CL!D@!9:X!;DW9>:!:9WL!cLBL:!>@!?SL!;DW9>:!:9WL!ULRL!VLP?!
ALCRL?5!?SL!A9=LA!PR>CL!D@!L9CS!jALCRL?T!;DW9>:!CDQ=;!ZL!A?9?L;d5!9:;!?SL!22.A!S9BL!
ZLL:! VLP?! >:! ?SL! ;9RV! 9A! ?D! 9PPR9>AL;! B9=QL! D@! ?SDAL! ;DW9>:! :9WLA! U>?S! ?SL!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 5 of 27 PageID 41352
!
"\"
j9PPR9>ALRT! RL=>L;! QPD:! ZX! ?SL! RLCL>BLR6! ! ! ,CCDR;>:Y=X5! UL! WDBL! ?D! S9BL! ?S9?!
>:@DRW9?>D:! RL=L9AL;5! 9:;! 9! RL9AD:9Z=L! DPPDR?Q:>?X! 9==DUL;! ?D! RLAPD:;! ?D! ?SL!
APLC>@>C!;DW9>:A!>:!_QLA?>D:6!!!!!
.>=:KD@9(L(.:9C?>E9EDG(
(
.-(.( ).++"!( *$( "-+.4&%-^"'( &.ZR( +^"( '%-+!%2+( 2*3!+( &.2g-(
-34\"2+( ).++"!( \3!%-'%2+%*,( *a"!( +^"( .--"+-( *$( ,*a*( 0*%,+(
&&2(.,'(`3.,+"2(&&2(
N5(+CD>D( ):G9( $E>G9( OD( 7( 2?@9>?HD>GP( 0;DA( 4DB?>D( 9CD( 2?:>9( 2?@8D>@E@=( 9CD(
-:OQD89()799D>((
,A!9!PRL=>W>:9RX!W9??LR5!?SL!.D:A?>?Q?>D:!RL_Q>RLA!?S9?!@DR!9!@L;LR9=!CDQR?!?D!
S9BL!AQZkLC?!W9??LR!kQR>A;>C?>D:!DBLR!9:X!W9??LR5!?SLRL!WQA?!@>RA?!ZL!9!CD:?RDBLRAX!
CD:CLR:>:Y! ?S9?! W9??LR! P=L;! ZL@DRL! ?SL! .DQR?6! ! See! Liner v. Jafco, Inc.5! Eba! )6+6!
EF#5!EF\!@:E!c#G\`d6!!,CCDR;>:Y=X5!?SL!0>@?S!.>RCQ>?!S9A!SL=;!?S9?!f[&]SL!LeLRC>AL!D@!
kQ;>C>9=! PDULR! ;LPL:;A! QPD:! ?SL! Le>A?L:CL! D@! 9! C9AL! DR! CD:?RDBLRAX6g! Locke v.
Board Of Public Instruction of Palm Beach Cty.5!`GG!06^;!EaG5!E\`!ca?S!.>R6!#Gb`d6!!
0L;LR9=! CDQR?A! 9RL5! :D?9Z=X5! CDQR?A! D@! =>W>?L;! kQR>A;>C?>D:5! 9:;! ?S9?! kQR>A;>C?>D:!
C9::D?!?D! ZL!LeP9:;L;! ZX! kQ;>C>9=!;LCRLL6! Kokkonen v. Guardian Life Ins. Co. of
America5! a##! )6+6! Eba5! Ebb! c#GG`d6! ! 0QR?SLR5! >?! >A! PRLAQWL;
!?S9?!9!W9??LR!=>LA!
DQ?A>;L! 9! CDQR?TA! AQZkLC?! W9??LR! kQR>A;>C?>D:! 9:;! ?SL! ZQR;L:! D@! LA?9Z=>AS>:Y! ?SL!
CD:?R9RX!RLA?A!QPD:!?SL!P9R?X!9AALR?>:Y!kQR>A;>C?>D:6!Id.p!McNutt v. General Motors
Acceptance Corp.5!^GH!)6+6!#bH5!#H^"#HE!c#GE\d6!!!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 6 of 27 PageID 41353
!
"b"
,A!;>ACQAAL;!ZL=DU5!?SL!0>@?S!.>RCQ>?!S9A!SL=;!?S9?!9!C=9>W!DR!CD:?RDBLRAX!>A!
:D?!CRL9?L;!ZX!9!RL_QLA?!?D!>WPDAL!9!RLCL>BLRAS>P6!!-9?SLR5!?SL!;>A?R>C?!CDQR?!WQA?!
S9BL!AQZkLC?!W9??LR!kQR>A;>C?>D:!DBLR!9!CD:?RDBLRAX!CD:CLR:>:Y!?SL!PRDPLR?X!ZL@DRL!
9! RLCL>BLRAS>P! W9X! ZL! >WPDAL;! DBLR! ?S9?!PRDPLR?X6!!&SL!0>@?S!.>RCQ>?!S9A!
APLC>@>C9==X! SL=;! ?S9?! @DR! 9! CDQR?! ?D! S9BL! AQZkLC?! W9??LR! kQR>A;>C?>D:! PQRAQ9:?! ?D!
US>CS!9! RLCL>BLRAS>P!cD?SLRU>AL! 9Q?SDR>qL;d! C9:!ZL! DR;LRL;5!?SLRL!WQA?! @>RA?!ZL! 9!
CD:?RDBLRAX!CD:CLR:>:Y!?S9?!PRDPLR?X!P=L;!ZL@DRL!?SL!CDQR?6!Cochrane v. WF Potts
Son & Co.5!`b!06^;!#F^\5!#F^b"#F^H!ca?S!.>R6!#GE#d6!
65(Cochrane v. WF Potts Son & Co.R(JS($56A(NT6M(UV9C(2E>5(NWXNY(
&SL! 0>@?S! .>RCQ>?! A_Q9RL=X! 9;;RLAAL;! ?SL! >AAQL! 9?! Z9R! >:! Cochrane. !$:!
Cochrane5!?SL!P=9>:?>@@!WDBL;!f[&]S9?!?SL!CDQR?!9PPD>:?!9!RLCL>BLR!?D!?9VL!CS9RYL!D@!
?SL! ALCQR>?>LA! D@5! 9:;! 9C?! 9A!AQCCLAADR!?RQA?LL!>:5!9==
!?SL!>AAQLA![D@!A?DCV]6g!Id. 9?!
#F^b6! &SL! Cochrane!WD?>D:!U9A!YR9:?L;!9:;5!9A!RL_QLA?L;!>:!?SL!WD?>D:5!?SL!
;>A?R>C?! CDQR?! P=9CL;! ?SL! 9==
!?SL!A?DCV!>AAQLA!cALR>LA!,"0d!>:?D!RLCL>BLRAS>P6!Id. 9?!
#F^H6!!'DULBLR5!DQ?A>;L!D@!ALR>LA!(5!:D!C=9>W!9Y9>:A?!?SL!A?DCV!S9;!ZLL:!W9;L!>:!
?SL!P=L9;>:YA6!Id6!9?!#F^b6!!&SL!0>@?S!.>RCQ>?!?SLRL@DRL!@DQ:;!?S9?!?SL!;>A?R>C?!CDQR?!
=9CVL;! fkQR>A;>C?>D:! DBLR! ?SLAL! [D?SLR]! PRDPLR?>LAg! 9:;! ?SL! DR;LR! 9PPD>:?>:Y! 9!
RLCL>BLR!?D!?9VL!CS9RYL!D@!?SLW!U9A!BD>;6
!Id.!9?!#F^H6
#
!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
#
!!$:!Cochrane5!?S>A!'D:DR9Z=L!.DQR?!9::DQ:CL;!@DQR!VLX!PR>:C>P=LA!D@!=9U5!9A!@D==DUAN!!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 7 of 27 PageID 41354
!
"H"
,CCDR;>:Y=X5!?SL!9PP=>C9?>D:!D@!?SL!0>@?S!.>RCQ>?TA!SD=;>:Y!>:!Cochrane!?D!?SL!
C9AL!9?! Z9R! >A!C=L9R6! %D! C=9>W!DR! CD:?RDBLRAX!U9A! P=L;!9Y9>:A?! %DBD! 4D>:?5!22.5!
hQ9:?LC5! 22.5! DR! ?SL>R! PRDPLR?X6! ! +>:CL! ?SL! P=L9;>:YA! ;>;! :D?! PQ?! 9?! >AAQL! ?SL!
AQZkLC?! W9??LR!D@! %DBD! 4D>:?! 22.5! hQ9:?LC! 22.5! DR! ?SL>R! PRDPLR?X5! ! ?SL! *>A?R>C?!
.DQR?! =9CVL;! AQZkLC?! W9??LR! kQR>A;>C?>D:! U>?S! RLAPLC?! ?D! ?SL! 22.A! 9:;! ?SL>R!
PRDPLR?X6!See Cochrane!9?!#F^H"#F^G6
(
-""g%,1(+*( 3-"( ,*a*(0*%,+R( &&2(.,'( `3.,+"2R( &&2(.--"+-( +*(
0./( *$$( ,*,#\3'1)",+( '"4+-(.&&"1"'(.1.%,-+( *+^"!( 0.!+%"-( %-(
,*+(.3+^*!%h"'(4/(&.Z(
!
4?;;?>D(-.(H5(%KI?>9(Z7>DC?:GDR(%@85(
&SL! >AAQL! U9A! PRLAL:?L;! ?D!?SL!0>@?S!.>RCQ>?!>:!Bollore SA v. Import
Warehouse, Inc.5!``H!06E;!E#b!ca?S!.>R6!^FF\d6!!$:!Bollore5!?SL!;>A?R>C?!CDQR?!L:?LRL;!
9:! DR;LR! 9PPD>:?>:Y! 9! RLCL>BLR! DBLR! 9:! 9==LYL;! j9=?LR! LYDT! L:?>?X5! 9:;! DR;LR>:Y!
?QR:DBLR! D@! PRDPLR?X6! Id6! 9?! E^#6! ! &SL! 0>@?S! .>RCQ>?! B9C9?L;! ?SL! RLCL>BLRAS>P! 9:;!
SL=;!?S9?!?QR:DBLR!DR;LRA!;D!f:D?
!9==DU!@DR!9!;L?LRW>:9?>D:!D@!?SL!AQZA?9:?>BL!R>YS?A!
D@!>:BD=BL;!P9R?>LAg!9:;!W9X!:D?
!ZL!QAL;!f9A!9!BLS>C=L!?D!9;kQ;>C9?L!?SL!AQZA?9:?>BL!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
c#d!%D?S>:Y!U9A!9==LYL;!>:!?SL!P=9>:?>@@TA!P=L9;>:YA!?D!AL?!QP!9:X!C=9>W!9Y9>:A?!ALCQR>?>LA!
ALR>LA! ,"*5! DR! ALR>LA! 05! 9:;! ?SLRL@DRLN! [&]SL! P=9>:?>@@AT! P=L9;>:YA! [;>;! :D?]! PQ?! ?SL>R!
AQZkLC?"W9??LR!9?!>AAQLp!
c^d!&SL!;>A?R>C?!CDQR?!?SLRL@DRL!S9;!:D!AQZkLC?!W9??LR!kQR>A;>C?>D:!DBLR!?SL!PRDPLR?X5!9:;!
ZLC9QALN![$]?!S9;!:D!kQR>A;>C?>D:!DBLR!?SLAL!PRDPLR?>LA5!>?A!DR;LR!9PPD>:?>:Y!9!RLCL>BLR!?D!
?9VL!CS9RYL!D@!?SLW!U9A!BD>;p!
cEd! [+]L>q>:Y! ?SL! ALCQR>?>LA! ;>;! :D?5! Q:=LAA! ?SL! AQZkLC?"W9??LR! U9A! ZX! PRDPLR! P=L9;>:YA!
9=RL9;X!ZL@DRL!?SL!CDQR?5!9>;!>?A!kQR>A;>C?>D:p!9:;!!
c`d! OSLRL! kQ;>C>9=! ?R>ZQ:9=A! S9BL! :D! kQR>A;>C?>D:! D@! ?SL! AQZkLC?! W9??LRA! D:! US>CS! ?SLX!
9AAQWL!?D!9C?5!?SL>R!PRDCLL;>:YA!9RL!9ZAD=Q?L=X!BD>;!>:!?SL!A?R>C?LA?!AL:AL!D@!?SL!?LRW6!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 8 of 27 PageID 41355
!
"G"
R>YS?A!D@!:D:"kQ;YWL:?!?S>R;!P9R?>LAg6! Id6!9?!E^E6!!&SL!0>@?S! .>RCQ>?!SL=;! ?S9?!?S>A!
RQ=L!Q=?>W9?L=X!APR>:YA!@RDW!;QL!PRDCLAA!CD:CLR:A6!Id.!cAQCS!9!RLWL;X!fCDWP=L?L=X!
ZXP9AALA!DQR!AXA?LW!D@!9@@DR;>:Y!;QL!PRDCLAA6gd6!
,A! LeP=9>:L;! ZX! ?SL! 0>@?S! .>RCQ>?! >:! Bollore5! 9=?LR! LYD! PRDCLL;>:YA! 9RL!
AQZA?9:?>BL!PRDCLL;>:YA!9R>A>:Y!DQ?!D@!A?9?L!=9U6!Id. 9?!E^`6!!4QRAQ9:?!?D!&Le9A!=9U5!
9!P9R?X!WQA?!PQRAQL!?SL>R!9=?LR!LYD!PRDCLL;>:YA!>:!9!ALP9R9?L!?R>9=!D:!?SL!WLR>?A6!!Id. !
%D!AQCS!PRDCLL;>:YA!ULRL!P=L;!9Y9>:A?!%DBD!4D>:?!DR!hQ9:?LC5!9:;!:D!AQCS!?R>9=!
U9A!LBLR!SL=;6 ,A!>:!Bollore5!ZLC9QAL!:D!>:;LPL:;L:?!?R>9=!U9A!SL=;!9Y9>:A?! %DBD!
4D>:?! DR!hQ9:?LC! ?D! LA?9Z=>AS! 9:!9=?LR! LYD! C=9>W5! ! ?SL>R! 9AAL?A! C9::D?! ZL! ?9VL:!?D!
A9?>A@X!ADWLD:L!L=ALTA!;LZ?A6!
KX! CD:?R9A?5! >?! >A! =D:Y! AL??=L;! =9U! ?S9?! RLCL>BLRAS>P! f;L?LRW>:LA! :D!
AQZA?9:?>BL! R>YS?p! :DR! >A! >?! 9! A?LP! >:! ?SL! ;L?LRW>:9?>D:! D@! AQCS! 9! R>YS?6g! Pusey &
Jones Co. v. Hanssen5!^\#!)6+6!`G#5!`Gb!c#G^Ed6!!!
%D?9Z=X5! >@! %DBD! 4D>:?! 9:;! hQ9:?LC had been!ALRBL;!U>?S!C>?9?>D:!9:;!
9PPL9RL;! 9A! P9R?>LA! >:! 9! =9UAQ>?! ALLV>:Y! ?D! >WPQ?L! =>9Z>=>?X! QPD:! ?SLW! Q:;LR! 9:!
9=?LR! LYD! DR! RLBLRAL! P>LRC>:Y! ?SLDRX! c:L>?SLR! D@! US>CS! S9A! DCCQRRL;d5! ?SLX! UDQ=;!
S9BL!PRLB9>=L;!9?!?R>9=!9A!9!W9??LR!D@!=9U6!!+CD(BE>G9(G9DI(9?(7(8;7EK(B?>(IED>8E@=(
9CD( 8?>I?>79D( HDE;( U7;9C?:=C( @?97O;PR( @?( G:8C( 8;7EK( _7G(I;DA( ?>( CD7>AY( EG( 9?(
AD9D>KE@D( _CE8C( Q:>EGAE89E?@iG( ;7_( 8?@9>?;G( 9CD( EGG:D5( E.g.R( Sommers Drug
Stores Co. Emp. P. Sharing Trust v. CorriganR([[X($56A(XJVR(XVX(UV9C(2E>5(NW[WY5!!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 9 of 27 PageID 41356
!
"#F"
%DBD!4D>:?5!22.!9:;!hQ9:?LC5!22.!9RL!>:CDRPDR9?L;!Q:;LR!?SL!=9UA!D@!?SL!.DDV!
$A=9:;A6! ! &SL! =9U! D@! ?SL! .DDV! $A=9:;A! ?SLRL@DRL! 9PP=>LA6! ! See e.g.5! Alberto v.
Diversified Group, Inc.5! aa! 06E;! ^F#5! ^FE! ca?S! .>R6! #GGadp! Klaxon Co. v. Stentor
Elec. Mfg. Co.5!E#E!)6+6!`Hb5!`G\!c#G`#d6!!4QRAQ9:?!?D!.DDV!$A=9:;A!=9U5!?SLRL!>A!
:D!Z9A>A!?D!>WPDAL!RLBLRAL!9=?LR"LYD!=>9Z>=>?X6!Cook Islands!Ltd.Liab.Cos.Act 2009
§45.
2
!
+^"( !"`3%!")",+-( *$( 6[( 35-525( 6TTN( .00&/( +*( 0"!-*,.&+/(
03!-3.,+(+*(6[(35-525(6TTJ5(
!
$@!?SLRL!ULRL! 9!=LY9=!Z9A>A!?D! =>_Q>;9?L!9:X!;DW9>:!:9WL5!9A!9!YL:LR9=!RQ=L!
f,:X!PLRAD:9=?X!AD=;!Q:;LR!9:X!DR;LR!DR!;LCRLL!D@!9:X!CDQR?!D@!?SL!):>?L;!+?9?LA!
AS9==!ZL!AD=;!>:!9CCDR;9:CL!U>?S!ALC?>D:!^FF#!D@!?S>A!?>?=Lg6!!^H!)6+6.6!^FF`6!!!%D!
kQA?>@>C9?>D:!S9A!ZLL:!D@@LRL;!?D!LeP=9>:!9!;>@@LRL:?!9PPRD9CS!>:!?S>A!C9AL6!!$@!?SLRL!
9RL! P9R?>LA! >:?LRLA?L;! ?D! PQRCS9AL! 9! ;DW9>:5! ?SLRL! >A! :D! =DY>C9=! RL9AD:! USX! ?SLX!
UDQ=;!:D?!Z>;!D:!?SL!;DW9>:!>:!9!PQZ=>C!9QC?>D:6!!
(
%+( %-( 0.+",+&/( 3,!".-*,.4&"( ,*+( +*( ",1.1"( %,( .,/
(
).!g"+%,1("$$*!+-(Z%+^(!"-0"2+(+*(+^"('*).%,(,.)"-(-*31^+(
+*(4"(&%`3%'.+"'5(
!!
8R6! %L=AD:! A?9?LA! >:! S>A! 9@@>;9B>?!?S9?! SL! ;>;! :D?! L:Y9YL! >:! 7@P
!W9RVL?>:Y!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
^
!&SL!A9WL!RLAQ=?!UDQ=;!ZL!RL9CSL;!>:!9PP=X>:Y!&Le9A!CDRPDR9?L!=9U6!!,A!LeP=9>:L;!ZX!?SL!0>@?S!
.>RCQ>?! >:! Bollore5! f&Le9A! CDQR?A! U>==! :D?! 9PP=X! ?SL! 9=?LR! LYD! ;DC?R>:L! ?D! ;>RLC?=X! DR! RLBLRAL=X!
P>LRCL!?SL!CDRPDR9?L!BL>=!Q:=LAA!D:L!D@!?SL!j9=?LR!LYDAT!DU:A!A?DCV!>:!?SL!D?SLR6g!Id.!9?!E^a6!!!+>:CL!
IL@@! K9RD:! DU:A! :D! A?DCV! >:! L>?SLR! %DBD! 4D>:?5! 22.5! :DR! hQ9:?LC5! 22.5! ! 9=?LR"LYD! =>9Z>=>?X!
UDQ=;!:D?!9PP=X6!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 10 of 27 PageID 41357
!
"##"
L@@DR?A! U>?S! RLAPLC?! ?D! ?SL! ;DW9>:! :9WLA! ?SL! RLCL>BLR! ;LA>RLA! ?D! =>_Q>;9?L6! ! ! 8R6!
%L=AD:!9;W>?A!?S9?!SL!CRL9?L;!9!PRD?DCD=!@DR!AL==>:Y!;DW9>:!:9WLA!9?!9!RL9AD:9Z=L!
B9=QL6!!&S9?!PRD?DCD=!>:C=Q;LA!9;BLR?>ALWL:?A!D:!>:;QA?RX!ULZA>?LA5!!PRLAA!RL=L9ALA5!
L:Y9Y>:Y! ZRDVLRA5! QA>:Y! 9:! 9QC?>D:5! 9:;! W9>:?9>:>:Y! 9! A9=LA! ULZA>?L6! ! ! ! %D:L
!D@!
?SLAL! PRDCL;QRLA! ULRL! @D==DUL;! U>?S! RLAPLC?!?D!?SL!;DW9>:!:9WLA!:DU!9?!>AAQL6!!!
&S9?!>A!P9?L:?=X!Q:RL9AD:9Z=L6!
8R6! %L=AD:TA! 9@@>;9B>?! LA?9Z=>ASLA! ?S9?!?SL!A9=LA!PR>CLA!@DR!W9:X!D@!?SL!
;DW9>:A! ADQYS?! ?D! ZL! AD=;! 9RL! fAQZA?9:?>9==X!=DULR!?S9:!?SL>R!9PPR9>AL;!B9=QLA6g!!!
2>_Q>;9?>D:!>:!AQCS!C>RCQWA?9:CL!>A!P9?L:?=X!Q:RL9AD:9Z=L6!
)!5( ,"&-*,i-( -*3!2"( $*!( ( j.00!.%-.&-i( ( ( .,'( )"+^*'*&*1/(
$*!( '"+"!)%,%,1( '*).%,( a.&3"( %-( ,*+( !"&%.4&"( ,*!(
!".-*,.4&"(
!
478<=>?:@A
!
&SLRL!9RL!;>@@LRL:?!9APLC?A!D@!;DW9>:!:9WL!B9=QL5!9A!@D==DUAN!
#6! f49RV>:Yg!B9=QL6!
!&S>A!9APLC?!D@!B9=QL!RL=9?LA!?D!?SL!R9:;DW!?R9@@>C!
9! :9WL! W9X! DZ?9>:6! fYDDY=6CDWg! ! @DR! Le9WP=L! W9X! L:kDX! SL9BX! ?R9@@>C!
>:?L:;L;!@DR!YDDY=L6CDW6!!!/R5!fSD?WL9=A6CDWg!W9X!RLCL>BLR!?R9@@>C!@DR!?SDAL!
=DDV>:Y! @DR! SD?! WL9=A6! ! ! /R5! ! >@! 9! ULZA>?L! S9A! 9PPRDPR>9?L! CD:?L:?5! 9! :9WL!
W9X!@9C>=>?9?L!AL9RCS!?R9@@>C! 6! O>?S! ?SL! =9A?! DP?>D:! B9=QL! >A! ;LPL:;L:?!
QPD:!CD:?L:?5!AD!?S9?!9PPR9>A9=!D@!B9=QL!RL_Q>RLA!9:9=XA>A!D@!PDAA>Z=L!CD:?L:?!
9:;!:D?!kQA?!?SL!:9WL!>?AL=@6!!%D?9Z=X5!W9:X!D@!?SL!@9C?DRA!QAL;!?D!LB9=Q9?L!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 11 of 27 PageID 41358
!
"#^"
?SL!P9RV>:Y!B9=QL!D@!9!;DW9>:!C9:!ZL!9@@LC?L;6!!OLZ!CD:?L:?5!Z9CV!=>:VA5!9:;!
D?SLR! @9C?DRA! C9:! ZL! WD;>@>L;! ?D! AQZA?9:?>9==X! >:CRL9AL! ?SL! jP9RV>:YT! B9=QL!
9:;!P9AA>BL!>:CDWL!D@!9!ULZA>?L6!!,!ULZA>?L!?S9?!YL:LR9?LA!D:=X!o#!9!WD:?S!
W>YS?! YL:LR9?L! 9! ?SDQA9:;! ?>WLA! ?S9?! 9WDQ:?! >@! CD:?L:?! >A! 9;;L;! ?S9?!
YL:LR9?LA!AL9RCS! RLAQ=?A5!DR!>@! =>:VA!?D!?SL!A>?L!9RL!ALL;L;!DBLR!?SL!>:?LR:L?5!
L?C6!!!,CCDR;>:Y=X5!9!j;LBL=DPL;T!P9RV>:Y!;DW9>:!C9:!S9BL!9!?SDQA9:;!?>WLA!
B9=QL!?D!9:!Q:;LBL=DPL;!A>?L6!
^6! !f89RVL?>:Yg! B9=QL6
!!&S>A!B9=QL!>A!?SL!B9=QL! ?D! 9! CDWP9:X! DR!
9;BLR?>ALR! @DR! QAL! >:! 9! W9RVL?>:Y! C9WP9>Y:6! ! 0DR! Le9WP=L5! ?SL! ;DW9>:!
f+=>CL6CDWg!W>YS?!ZL!UDR?S!9!W>==>D:!;D==9RA!9A!9!V:>@L!>:;QA?RX!ULZA>?L5!DR!
S9=@! 9! W>==>D:! ;D==9RA! 9A! 9! 8RA6! K9>R;TA! KRL9;! PRDWD?>D:! A>?L6! ! ! /R5! @DR!
Le9WP=L5! 9! 4R>CL2>:L! CDWPL?>?DR! CDQ=;! W9RVL?! f+=>CL! ?SL! 4R>CLg! QA>:Y!
f+=>CL6CDWg! U>?S! 9! B9=Q9?>D:! @DR! ?SL! ;DW9>:! 9?! ALBLR9=! W>==>D:! ;D==9RA6!!!
*L?LRW>:9?>D:! D@! ?SL! W9RVL?>:Y! B9=QL! D@! 9:X! ;DW9>:! RL_Q>RLA! 9:! LePLR?!
DP>:>D:!@RDW!9!W9RVL?>:Y!PRD@LAA>D:9=!>:!?SL!RL=LB9:?5!9PP=>C9Z=L!@>L=;A!@DR!
US>CS! ?SL! ;DW9>:! UDQ=;! PRDB>;L! W9RVL?>:Y! B9=QL6! ! ! %D?9Z=X5! ZLC9QAL! ?SL!
B9=QL!>A!;L?LRW>:L;!ZX!?SL!W9RVL?>:Y!B9=QL!?D!?SL!CDWP9:X!USD!PQRCS9ALA!
?SL! ;DW9>:! Z9AL;! D:! W9RVL?>:Y! B9=QL5!US>=L!4QRL!+WDD?S>LA!W9X!D@@LR!
o#F5FFF6FF! 9A! >?A! W9e>WQW! D@@LR! @DR! ?SL! ;DW9>:! f4QRL6CDWg5! ! 4QRL!
$:BLA?LWL:?A!W>YS?! D@@LR!9! SQ:;RL;!?>WLA!?S9?!9ZDQ?!@DR!?SL!A9WL!;DW9>:6!!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 12 of 27 PageID 41359
!
"#E"
0DR! ?S9?! RL9AD:! B9=Q9?>D:! RL_Q>RLA! V:DU=L;YL! D@! ?SL! RL=LB9:?! W9RVL?A5! 9:;!
S9A! :D?S>:Y! ?D! ;D! U>?S! ?SL! >:?LR:L?! AL9RCSLA! DR! CQRRL:?! ;DW9>:! ?R9@@>C6!!
+>W>=9R=X5! W9RVL?>:Y! B9=QL! C9::D?! ZL!;L?LRW>:L;!ZX!CDWP9R>:Y!PSXA>C9==X!
rA>W>=9Rr!;DW9>:A6!!!0DR!Le9WP=L!f.DVL6CDWgrA!B9=QL!S9A!:D?S>:Y!?D!;D!U>?S!
?SL!B9=QL!D@!f4DVL6CDWg!DR!fIDVL6CDWg6!!&SL!ZD??DW!=>:L!>:!;L?LRW>:>:Y!?SL!
W9RVL?>:Y! B9=QL! D@! 9:X! ;DW9>:! >A! ?S9?!>?!RL_Q>RLA!A>Y:>@>C9:?!LePLR?>AL!9:;!
RLAL9RCS!>:?D!?SL!fZR>CV!9:;!WDR?9Rg!UDR=;!>:!DR;LR!?D!;L?LRW>:L!9!;DW9>:TA!
B9=QL6!!!
E6! !f(YDg!B9=QL6
!!0DR!Le9WP=L5!fID:LA6CDWg!!W9X!ZL!UDR?S!9!SQ:;RL;!
?SDQA9:;A! ;D==9RA! ADWLD:L! ! :9WL;! ID:LA! ?S9?! CDQ=;! 9@@DR;! ?SL! PR>CL6!!
,CCDR;>:Y=X5! PRDPLR=X! 9;BLR?>AL;! 9QC?>D:A! 9RL! :LCLAA9RX! ?D! RL9=>qL! 9!
;DW9>:TA!LYD!B9=QL6!!!
!
,D;G?@iG(.II>7EG7;G(3@>D;E7O;D
(
!(A?>ZD?5!!=>VL!?SL!D?SLR!j9PPR9>A9=T!ADQRCLA!RL=>L;!QPD:!ZX!?SL!RLCL>BLR!
;D!:D?!>:BD=BL! B9=Q9?>D:!D@! ?SL! ;DW9>:TA!f89RVL?>:Yg! B9=QL6!!-9?SLR! (A?>ZD?! 9:;!
?SL!D?SLR!D:"=>:L!!j9PPR9>A9=T!ADQRCLA!QAL;!ZX!?SL!RLCL>BLR!QAL!9!CDWPQ?L;!B9=Q9?>D:!
Z9AL;!D:!?SL!ALW9:?>CA!D@!?SL!;DW9>:!:9WL6!!!&SL!j9PPR9>A9=T!A>?LA!9RL!;LA>Y:L;!@DR!
9W9?LQRA! USD! ;D! :D?! Q:;LRA?9:;! ?SL! ;DW9>:! :9WL! >:;QA?RX6! ! ! &S9?! 8R6! %L=AD:!
C=L9R=X! S9A! :D! >;L9! US9?! SL! >A! ?9=V>:Y! 9ZDQ?! 9:;! C=L9R=X! =9CVA! LePLR>L:CL! >A!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 13 of 27 PageID 41360
!
"#`"
LA?9Z=>ASL;! ZX!S>A! C=9>W! ?S9?! (A?>ZD?TA!9PPR9>A9=A! ?XP>C9==X! 9RL! U>?S>:! ^Fm! D@! ?SL!
LBL:?Q9=! A9=L! PR>CL6! ! !,:X! CRL;>Z=L! 9:;! >:;LPL:;L:?! >:;QA?RX! LePLR?! U>==! CD:@>RW!
?S>A5!9:;!AD!;DLA!(A?>ZD?6CDW6!
(A?>ZD?! LePRLAA=X! ;>AC=DALA! ?S9?! ?SLX! 9RL! :D?! D@@LR>:Y! 9:! 9C?Q9=! ;D==9R!
9PPR9>A9=!@DR!;DW9>:!:9WLA5!9:;!LePRLAA=X!;>RLC?A!?S9?!?SL>R!f9PPR9>A9=Ag!ASDQ=;!:D?
!
ZL!QAL;!>:! W9V>:Y!A9=LA!;LC>A>D:A6!!,?!?SL!ZD??DW! D@!L9CS!9PPR9>A9=("G9EO?958?K(
AEG8;?GDG!f+CD(A?;;7>(H7;:79E?@(EG(@?9(9?(OD(97<D@(;E9D>7;;P(k5('?(@?9(K7<D(7(
I:>8C7GD(?>(G7;D(AD8EGE?@G(O7GDA(?@(9CEG(7II>7EG7;5g!
IQA?! =>VL! 9! )+! *>A?R>C?! .DQR?! ASDQ=;! :D?!Z9AL!;LC>A>D:A!D:!?SL!CD:?L:?A!D@!
@DR?Q:L! CDDV>LA5! ! (A?>ZD?TA! j9PPR9>A9=AT! ASDQ=;! :D?! ZL! QAL;! >:! W9V>:Y! 9! A9=LA!
;LC>A>D:6! 'LRL! >A! 9! A>WP=L! Le9WP=L! ?D!>==QA?R9?L6!!(A?>ZD?6CDW!j9PPR9>AL;T!
fI9P9:6CDWg!9?!oG5GFF6FF!USL:!3DYL=TA!WD?>D:!?D!=>_Q>;9?L!U9A!@>=L;6!!c&D;9X!?SL!
LA?>ZD?!9PPR9>A9=!D@!I9P9:6CDW!>A!o\G5FFF6FFd6!!&S9?!>A!:D?!BLRX!WQCS!WD:LX6!!KX!
CD:?R9A?5! (A?>ZD?6CDW! 9PPR9>AL;! fMLRW9:X6CDWg! 9?! 9RDQ:;! o#5\FF5FFF6FF6!!!!
.=L9R=X5!fMLRW9:X6CDWg!>A!:D?!UDR?S!ZX!9!@9C?DR!D@!WDRL!?S9:!#\F!c#\5FFFmd!?SL!
B9=QL!D@!fI9P9:6CDWg6!!!!/R5!@DR!Le9WP=L5!!(A?>ZD?6CDW!B9=QLA!f<DRL96CDWg!Z9AL;!
D:! ?SL! 9C?Q9=! A9=L! D@! ?SL! :9WL5! ! 9?!DBLR!oa5FFF5FFF6FF6!!!!,CCDR;>:Y=X5(EB()>5(
,D;G?@( 7@A( 9CD( >D8DEHD>( _D>D( >D;EDA( :I?@( 9?( GD;;( b\7I7@58?Kc( E9( _?:;A( OD(
:@AD>#H7;:DA( OP( 7>?:@A( ( VTRTTTl6! ! $L65! >@! (A?>ZD?! >A! ?SL! ADQRCL! D@! B9=Q9?>D:!
cUS>CS!8R6!%L=AD:!RL=>LA!QPD:!?D!;L?LRW>:L!B9=QL!U>?S>:!^Fm!D@!A9=LA!PR>CLd!?SL:!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 14 of 27 PageID 41361
!
"#a"
?SL!;DW9>:A!U>==!ZL!AD=;!9?!9!GG6am!;>ACDQ:?5!!LAAL:?>9==X!Y>B>:Y!?SL!;DW9>:A!9U9X6!!!!!!
&SL!D?SLR!ULZ!Z9AL;!j9PPR9>A9=T!ALRB>CLA!RL=>L;!QPD:!ZX!8R6!%L=AD:!9:;!?SL!
RLCL>BLR! 9RL! A>W>=9R6! ! 09C?DRA! QAL;! ?D!;L?LRW>:L!;DW9>:!B9=QL!9RL!fZ9CV=>:VA5!
MDDY=L!49YL-9:V5!.DWPL?L!R9:V5!hQ9:?C9A?!R9:V5!9:;!,=Le9!R9:Vg!9A!UL==!9A!f?SL!
WL9:>:Y! D@! ?SL! VLXUDR;A! PRLAL:?! >:! ?SL! ;DW9>:! :9WLg6! ! 0DR! ?SL! ULZ! Z9AL;!
9PPR9>A9=! ALRB>CLA! AQCS! 9A! *DW9>:,PPR>A9=6CDW5! ! f.DWWLRCL! 4D?L:?>9=g! WL9:A!
fWD:?S=X!VLXUDR;!AL9RCS!BD=QWLA5!.4.!9;BLR?>A>:Y!CDA?5!S>A?DR>C9=!AL9RCS!BD=QWL!
?RL:;A5!9:;!AL9AD:9=!AL9RCS!BD=QWL!?RL:;A6g!!%D:L!D@!?SLAL!A?9?>A?>CA!9ZDQ?!>:?LR:L?!
?R9@@>C!S9BL!9:X?S>:Y!?D!;D!U>?S!?SL!W9RVL?>:Y!B9=QL!D@!9:X!P9R?>CQ=9R!;DW9>:!:9WL!
U>?S!RL=9?>D:AS>P!?D!9:X!P9R?>CQ=9R!>:;QA?RX!DR!PRD;QC?6!
-LAPD:;L:?! 9CV:DU=L;YLA! ?S9?! ?SL! current
!f49RV>:Yg!USD=LA9=L!W9RVL?!
B9=QL! D@! 9! :D:"YL:LR>C! ;DW9>:! :9WL! A>?L! cAQCS! 9A! jZ>YA9;9:Y=LA6CDWgd! C9:! ZL!
RL9AD:9Z=X!;L?LRW>:L;!ZX!9:!j9PPR9>A9=T!!ZX!9!A>?L!=>VL!AL;D6CDW6!!!!&S9?!LB9=Q9?>D:!
WL?SD;D=DYX!>A!:D?!9PPRDPR>9?L!:DR!RL9AD:9Z=L!@DR!W9RVL?>:Y!:9WL!ULZA>?LA6!!&SL!
RLAQ=?! >A! ?S9?! ;DW9>:! :9WLA! UDR?S! W>==>D:A!D@!;D==9RA5!AQCS!9A!fI9P9:6CDWg!9RL!
j9PPR9>AL;T!9?!Q:;LR!o#F5FFF6FF5!DR!GG6am!ZL=DU
!?SL>R!RL9=!W9RVL?!B9=QL6!
!
+^"(*!'"!-(1!.,+%,1(+^"(!"2"%a"!i-($""-(.!"("!!*,"*3-((
(&78<(?B(-:OQD89()799D>(\:>EGAE89E?@(
&SL!+QPRLWL!.DQR?!S9A!SL=;!?S9?!USLRL!9!;>A?R>C?!CDQR?!=9CVA!AQZkLC?!W9??LR!
kQR>A;>C?>D:!DBLR!9AAL?A!P=9CL;!>:?D!RLCL>BLRAS>P5!?SL!CDQR?!>A!U>?SDQ?!PDULR!?D!W9VL!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 15 of 27 PageID 41362
!
"#\"
9:X! CS9RYL! QPD:5! DR! ;>APDA>?>D:! D@5! ?SL! PRDPLR?X! AL>qL;6! E.g., Lion Bonding &
Surety Co. v. Karatz5! ^\^! )6+6! \`F5! \`^! c#G^Ed6! !,A! LeP=9>:L;! ZX! ?SL! +QPRLWL!
.DQR?5!f%B(9CD>D(_D>D(@?(Q:>EGAE89E?@R(9CD>D(_7G(@?(I?_D>(9?(A?(7@P9CE@=(O:9(9?(
G9>E<D( 9CD( 87GD( B>?K( 9CD( A?8<D95c( Citizens' Bank v. Cannon5! #\`! )6+6!E#G5! E^`!
c#HG\d6!4QRAQ9:?!?D!?SL!SD=;>:Y!D@!?SL!0>@?S!.>RCQ>?!>:!Cochrane v. WF Potts Son &
Co.5! `b! 06^;! #F^\! ca?S! .>R6! #GE#d5! ZLC9QAL! ?SL! P=L9;>:YA! >:! ?SL! ;>A?R>C?! CDQR?!
=9UAQ>?!;>;!:D?!PQ?!?SL!AQZkLC?!W9??LR!D@!?SL!PRDPLR?X!DR;LRL;!>:?D!RLCL>BLRAS>P!9?!
>AAQL5!?SL!;>A?R>C?!CDQR?!=9CVL;!AQZkLC?!W9??LR!kQR>A;>C?>D:!DBLR!?SL!PRDPLR?X6!!$?!>A5!
WDRLDBLR5! PRLAQWL;! ?S9?! 9! CDQR?! =9CVA! AQZkLC?! W9??LR! kQR>A;>C?>D:6! ! E.g., Lehigh
Mining & Mfg. Co. v. Kelly,!#\F!)6+6!E^b5!EEb!c#HGadp!Kokkonen v. Guardian Life
Ins. Co. of America5! a##! )6+6! Eba5! Ebb! c#GG`d6! ! 0QR?SLR5! =9CV! D@! AQZkLC?! W9??LR!
kQR>A;>C?>D:!C9::D?!ZL!U9>BL;!:DR!DBLRCDWL!ZX!9:!9YRLLWL:?!D@!?SL!P9R?>LA6!!E.g.,
Mitchell v. Maurer5! ^GE! )6+6! ^Eb5! ^``! c#GE`d6! ! ! ,CCDR;>:Y=X5! @LLA! W9X! :D?! ZL!
9U9R;L;!@RDW!?SL!RLCL>BLRAS>P!LA?9?LAT!PRDPLR?X6!(6Y65!Lion Bonding 9?!\`^6!
!D8DEHD>GCEI($DDG(3@7:9C?>E]DA(
8DRLDBLR5! LBL:! USLRL! ?SLRL! >A! AQZkLC?!W9??LR!kQR>A;>C?>D:!c?SLRL!>A!:D:L!
SLRLs!:D! C=9>W!U9A! P=L;! 9Y9>:A?! %DBD! 4D>:?!22.5!hQ9:?LC! 22.5!DR! ?SL>R!9AAL?A5!
:DR!9Y9>:A?! ?SL!9AAL?A! D@! IL@@!K9RD:d! ?SL!+QPRLWL! .DQR?!S9A!SL=;! ?S9?!f$@! SL! [?SL!
RLCL>BLR]! S9A! ?9VL:! PRDPLR?X! >:?D! S>A! CQA?D;X! Q:;LR! 9:! >RRLYQ=9R5! Q:9Q?SDR>qL;!
9PPD>:?WL:?5!SL!WQA?
!=DDV!@DR!S>A!CDWPL:A9?>D:!?D!?SL!P9R?>LA!9?!USDAL!>:A?9:CL!SL!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 16 of 27 PageID 41363
!
"#b"
U9A! 9PPD>:?L;g6! Atlantic Trust Co. v. Chapman5! ^FH! )6+6! E\F5! EbE!
c#GFHdcLWPS9A>Ad6!!&SL!>:A?9:?!RLCL>BLRAS>PA!9RL!ZD?S!>RRLYQ=9R!cZL>:Y!CDWWL:CL;!
>:!D@@"?SL"RLCDR;5!ex parte!PRDCLL;>:YA!U>?SDQ?!9:X!AQPPDR?>:Y!9@@>;9B>?A!DR!LBL:!9!
C=9>W! ?D! ADWL! jLWLRYL:CXT! ?S9?! CDQ=;! :D?! ZL! PRD?LC?L;! 9Y9>:A?! ZX! 9! RLA?R9>:>:Y!
DR;LRd! 9:;!Q:9Q?SDR>qL;! cf?SLRL! >A! :D!DCC9A>D:! @DR! 9!CDQR?! D@! L_Q>?X!?D! 9PPD>:?! 9!
RLCL>BLR! D@! PRDPLR?X! D@! US>CS! >?! >A! 9AVL;! ?D! W9VL! :D! @QR?SLR! ;>APDA>?>D:g! 9:;! f9!
@L;LR9=! CDQR?! D@! L_Q>?X! U>==! :D?! 9PPD>:?! 9! RLCL>BLR! USLRL! ?SL! 9PPD>:?WL:?! >A! :D?!
9:C>==9RX! ?D! ADWL! @DRW! D@! @>:9=! RL=>L@! US>CS! >A! 9PPRDPR>9?L! @DR! L_Q>?X! ?D! Y>BLg5!
Gordon v. Washington5!^Ga!)6+6!EF5!Eb"EH!c#GEadd6!!,CCDR;>:Y=X5!?SL!RLCL>BLR!WQA?
!
=DDV! @DR! CDWPL:A9?>D:! @RDW! ?SL! P9R?>LA! 9?!USDAL!>:A?9:CL!SL!U9A!9PPD>:?L;6!!
Atlantic Trust 9?! EbE6! ! %D?9Z=X5! >?! U9A! 9?! 3DYL=TA! DU:! >:A>A?L:CL! ?S9?! SL! U9A!
9PPD>:?L;!RLCL>BLR!DBLR!%DBD!4D>:?!22.!9:;!hQ9:?LC!22.6!
3@8;D7@(^7@AG(
8DRLDBLR5!LBL:! >@!?SL! RLCL>BLRAS>PA!ULRL! 9Q?SDR>qL;!ZX! =9U!c?SLX! 9RL! :D?d5!
9:;!ULRL!:D?! ?9>:?L;!ZX!?SL! >RRLYQ=9R!PRDCLL;>:YA!?D!DZ?9>:! ?SLW5!?SL!@9C?Q9=!9:;!
=LY9=! Z9A>A! QPD:! US>CS! ?SL! RLCL>BLRAS>PA! ULRL! @DQ:;L;! S9BL! ZLL:! ASDU:! ?D! ZL!
@9=AL6!!,CCDR;>:Y=X5!?SL!D:=X!R>YS?!?D!LePL:ALA!UDQ=;!ZL!9:!L_Q>?9Z=L!R>YS?!?S9?!>A!
=>W>?L;! ?D! LePL:ALA! >:CQRRL;! ?D! ?SL! Le?L:?! ?SLX! S9BL! >:QRL;! ?D! ?SL! ZL:L@>?! D@! ?SL!
RLCL>BLRAS>P!LA?9?L!?S9?!>A!ADQYS?!?D!ZL!CS9RYL;6!!E.g. Speakman v. Bryan5!\#!06^;!
`EF5!`E#5!`E^!ca?S!.>R6!#GE^d6!!%D:L!D@!?SL!@LLA!ADQYS?!ZX!3DYL=!@DR!S>WAL=@!9:;!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 17 of 27 PageID 41364
!
"#H"
S>A! P9R?:LRA! S9A! ZL:L@>?L;! 9:X! RLCL>BLRAS>P! LA?9?L6! ! 8DRLDBLR5!3DYL=! >A! Z9RRL;! ZX!
?SL!L_Q>?9Z=L!W9e>W!?S9?!fSL!USD!CDWLA!>:?D!L_Q>?X!WQA?!CDWL!U>?S!C=L9:!S9:;Ag6!!
&SL!;DC?R>:L!D@!Q:C=L9:!S9:;A!RL_Q>RLA!?S9?!?SL!.DQR?!RL@QAL!f9:X!RL=>L@!US9?ADLBLR!
[9:;]!:D?!?D!CDWPRDW>AL!U>?S!>?!66!ZX!9==DU>:Y!9!P9R?!D@!US9?!U9A!C=9>WL;g!!E.g.,
Manufacturers' Finance Co. v. McKey5! ^G`! )6+6! ``^5! `a#! c#GEad6! !3DYL=! C=L9R=X!
CDWLA! U>?S! Q:C=L9:! S9:;A6! ! 3DYL=5! US>=L!SD=;>:Y!_Q9A>"kQ;>C>9=!D@@>CL!D@!APLC>9=!
W9A?LR!>:!?SL!C9AL5!>:!DR;LR!S9BL!S>WAL=@!9PPD>:?L;!9A!RLCL>BLR5!;LCL>?@Q==X!=L;!?SL!
*>A?R>C?! .DQR?n>:! ALCRL?5! Le! P9R?L5! D@@! ?SL! RLCDR;! PRDCLL;>:YAn! ?D! URD:Y@Q==X!
ZL=>LBL!?S9?!IL@@!K9RD:!S9;!C9QAL;!9!WL;>9?>D:5!@DR!US>CS!3DYL=!U9A!?SL!WL;>9?DR5!
?D!@9>=6!!$:!?RQ?S5!3DYL=!S9;!:D?!LBL:!ACSL;Q=L;!?SL!WL;>9?>D:!XL?6!!!&SL!;LCL>?!U9A!
@Q:;9WL:?9=! 9:;! W9?LR>9=6! ! &SL! *>A?R>C?! IQ;YL5! URD:Y@Q==X! DR! R>YS?@Q==X5! U9A!
CD:CLR:L;! ?S9?! IL@@! K9RD:! S9;! 9==LYL;=X! :D?!P9>;!9!=D:Y!=>A?!D@!9??DR:LXA6!!&SL!
*>A?R>C?!IQ;YL!DR;LRL;!WL;>9?>D:!?D!RLAD=BL!?SL!PLRCL>BL;!PRDZ=LW!?S9?!?SL!*>A?R>C?!
IQ;YL!@DQ:;!PLRAD:9==X!;>A?QRZ>:Y6!!!+>:CL!SL!S9;!DR;LRL;!WL;>9?>D:!?D!RLAD=BL!?SL!
>AAQL5! ?SL! *>A?R>C?! IQ;YL! UDQ=;! :D?! S9BL!?9VL:!?SL!WQCS!WDRL!;R9A?>C!A?LP!D@!
RLCL>BLRAS>P5! U>?SDQ?! U9>?>:Y! ?D! ALL! US9?! RLAQ=?! U9A! PRD;QCL;! ZX! ?SL! WL;>9?>D:6!!
,CCDR;>:Y=X5!>:!DR;LR!?D!S9BL!S>WAL=@!9PPD>:?L;!RLCL>BLR5!3DYL=!:LL;L;!?D!?DRPL;D!
?SL! WL;>9?>D:6! ! +D5! 9A! WL;>9?DR5! SL! @9>=L;! ?D! ACSL;Q=L! ?SL! WL;>9?>D:5! 9:;! @9=AL=X!
RLPRLAL:?L;!?D!?SL!*>A?R>C?!IQ;YL!?S9?!?SL!WL;>9?>D:!S9;!@9>=L;6!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 18 of 27 PageID 41365
!
"#G"
$DD(._7>A(_7G(,?9($?>(.89:7;(-D>HE8DG(9?(4D@DBE9(?B(&&2G(
&SL!0>@?S!.>RCQ>?!S9A!SL=;!?S9?!CDWPL:A9?>D:!P9>;!@RDW!9!RLCL>BLRAS>P!LA?9?L!
WQA?! ZL! @DR! 9C?Q9=! ALRB>CLA!PRDB>;L;!?D!?S9?!LA?9?L6!E.g.5! Commodity Credit
Corporation v. Bell5!#Fb!06^;!#FF#5!#FF#!ca?S!.>R6!#GEGdp!Securities and Exchange
Com'n v. Elliott5!GaE!06^;!#a\F!c##?S!.>R6!#GG^d!cf&SL!CDQR?!>:!L_Q>?X!W9X!9U9R;!
?SL! RLCL>BLR! @LLA! @RDW! PRDPLR?X! ALCQR>:Y! 9! C=9>W! >@! ?SL! RLCL>BLRrA! 9C?A! S9BL!
ZL:L@>?L;!?S9?!PRDPLR?X6gd6!!%D!9==LY9?>D:!S9A!ZLL:!W9;L!9:;!:D!LB>;L:CL!S9A!ZLL:!
D@@LRL;!?D!AQA?9>:!9!ASDU>:Y!?S9?!?SL!@LL!RL_QLA?!>A!@DR!RL9AD:9Z=L!DR!:LCLAA9RX!@LLA!
?D! ?SL! ZL:L@>?! D@! 9:X! LA?9?L5! :DR! 9RL! ?SL! @LLA! ALYRLY9?L;! ZL?ULL:! LA?9?LA6! ! &SL!
=>W>?9?>D:!QPD:!9??DR:LXA!?D!CS9RYL!D:=X!9!RL9AD:9Z=L!=LY9=!@LL!9:;!?D!CS9RYL!D:=X
!
@DR!=LY9=!ALRB>CLA!?S9?!9RL!9C?Q9==X!PRDB>;L;!>A!9!=LY9=!9:;!L?S>C9=!;Q?X!>WPDAL;!ZX!
=9U!>:!&Le9A6!Lee v. Daniels & Daniels5!^\`!+O!E;!^bE5!^HF"^H#!!c&Le6,PP6"+9:!
,:?D:>D! ^FFH5! PL?6! ;L:>L;dc:D?>:Y! f[,]??DR:LXA! 9RL! WLWZLRA! D@! 9:! 9:C>L:?!
PRD@LAA>D:!U>?S!Q:>_QL!PR>B>=LYLA!9:;!CDRRLAPD:;>:Y!RLAPD:A>Z>=>?>LAg!9:;!RLkLC?>:Y!
?SL!R>YS?!D@!9??DR:LX!?D!ALLV!@LLA!USLRL!f%D:L!D@!?S9?!?>WL!U9A!APL:?!L:Y9YL;!>:!
j=LY9=!ALRB>CLAT!PLR@DRWL;!DR!RL:;LRL;!D:!ZLS9=@!D@!.QWW>:YA5!S>A!C=>L:?6gd6!!
,?(^D7>E@=(_7G(^D;A(?@(9CD(2?@9DG9DA($DD(.II;E879E?@G((
&SL!*>A?R>C?! .DQR?!9=AD!LRRL;! >:!RL@QA>:Y!?D! SD=;!9:!LB>;L:?>9RX!SL9R>:Y! D:!
3D Y L = ! 9 : ; ! M 9 R ; L R L TA ! ; > A P Q ? L ; ! @ L L A 6 ! ! & S L ! 0 > @ ? S!.>RCQ>?!S9A!SL=;!?S9?!f?SL!kQ;YL!WQA?!
SD=;!9:!LB>;L:?>9RX!SL9R>:Y!>@!?SLRL!9RL!9:X!;>APQ?L;!@9C?Q9=!>AAQLA6g!Matter of US
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 19 of 27 PageID 41366
!
"^F"
Golf Corp.5!\EG!06^;!##Gb5!#^F^!ca?S!.>R6!#GH#d6!!&SL!*>A?R>C?!.DQR?!9=AD!LRRL;!>:!
@9>=>:Y!?D!LeP=9>:!?SL!Z9A>A!D@!S>A!9U9R;6!!&SL!0>@?S!.>RCQ>?!S9A!SL=;!?S9?!f0>:9==X5!
?SL! kQ;YL! WQA?! LeP=9>:! ?SL! Z9A>A! D@! S>A! 9U9R;6! $:! P9R?>CQ=9R5! SL! WQA?! ZR>L@=X!
;LACR>ZL!S>A!@>:;>:YA!D@!@9C?!9:;!LeP=9>:!SDU!9:!9:9=XA>A!D@!?SL!9PPRDPR>9?L!@9C?DRA!
S9A! =L;! ?D! S>A! ;LC>A>D:6! +>Y:>@>C9:?=X5! ?SL! kQ;YL! WQA?! >:;>C9?L! SDU! L9CS! D@! ?SL!
?UL=BL!IDS:AD:!@9C?DRA!9@@LC?L;!S>A!;LC>A>D:6g!Id. &SL!*>A?R>C?!.DQR?TA!DR;LR!@9>=A!
?D!WLL?!?S>A!A?9:;9R;6!
$DDG(">>?@D?:G;P(._7>ADA(B?>(Z?><(?@(.('EBBD>D@9(!D8DEHD>GCEI("G979D(
&SL! 0>@?S! .>RCQ>?! S9A! SL=;! ?S9?! RLCL>BLRAS>P! @LLA! WQA?! ZL! CS9RYL;! 9Y9>:A?!
L9CS!@Q:;!SL=;!ZX!?SL!RLCL>BLR!9A!>@!ALP9R9?L!RLCL>BLRA!S9;!ZLL:!9PPD>:?L;!@DR!L9CS6!!
Bank of Commerce & Trust Co. v. Hood5!\a!06^;!^H#5!^HE"`!ca?S!.>R6!#GEEd6!&SL!
*>A?R>C?!.DQR?!W9X!9U9R;!?SL!RLCL>BLR!@LLA!@RDW!PRDPLR?X!D:=X!>@!?SL!RLCL>BLRrA!9C?A!
S9BL!ZL:L@>??L;!that
!PRDPLR?X6!E.g.5!Securities and Exchange Com'n v. Elliott5!GaE!
06^;!#a\F!c##?S!.>R6!#GG^d!cRL=X>:Y!QPD:!Bank of Commerce & Trust Co. v Hood 9?!
^HEd6! ! &SL! 8>==>D:! *D==9R! @LL! 9U9R;! cW9V>:Y! 9! ?D?9=! D@! &UD! 8>==>D:! *D==9RA!
9U9R;L;!?D!3DYL=!9:;!M9R;LRLd!U9A!:D?!ALYRLY9?L;!:DR!ASDU:!?D!S9BL!ZLL:!@DR!9:X!
9C?A!?D!?SL!ZL:L@>?!D@!%DBD!4D>:?!22.!:DR!hQ9:?LC!22.6!
0DR!@QR?SLR!C9QAL!,PPL==9:?A!9=AD!9RYQL!?SL!@D==DU>:YN!
0QR?SLR5! PQRAQ9:?! ?D! &Le9A! =9U5! 9:! 9??DR:LX! >A! P9>;! cUSL:! ?SLX! 9C?Q9==X! ;D!
UDRV!D:!ZLS9=@!D@!9!C=>L:?!PRDB>;>:Y!=LY9=!ALRB>CLAd!:D?!AD=L=X!Z9AL;!D:!?SL>R!UDRV5!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 20 of 27 PageID 41367
!
"^#"
ZQ?!9=AD!Z9AL;!D:!?SL>R!=DX9=?X!?D!?SL!C=>L:?6!Burrow v. Arce5!GGb!+6O6^;!^^G5!^Eb!
c&Le6!#GGGd6!3DYL=TA!=9U!@>RW!S9A!:D?!ZLL:!=DX9=!?D!9:X!D@!?SL!RLCL>BLRAS>P!LA?9?LA!
>:!3DYL=TA! S9:;A6!! -9?SLR5!3DYL=! S9A! UDRVL;!>:!C=L9R!CD:@=>C?!D@!>:?LRLA?!ZL?ULL:!
B9R>DQA!LA?9?LA!9:;!9Y9>:A?!?SL!LA?9?LA6!!0DR!Le9WP=L5!3DYL=!9:;!S>A!=9U!@>RW!S9BL!
C=L9R=X!ZLL:!9C?>:Y!9A!PRDALCQ?DRA!9Y9>:A?!K9RD:!9:;!S>A!LA?9?L5!9C?>BL=X!AD=>C>?>:Y!
C=9>WA!9Y9>:A?!?SL!LA?9?L!9:;!9RYQ>:Y!9C?>BL=X!9Y9>:A?!?SL!>:?LRLA?A!D@!?SL!LA?9?L6!,?!
?SL! A9WL! ?>WL! 3DYL=! S9A! SL=;! ?SL! CD:@=>C?L;! PDA>?>D:! D@! ZL>:Y! CS9RYL;! U>?S!
;L@L:;>:Y!22.!9AAL?A!9Y9>:A?!jC=9>WAT!W9;L!9Y9>:A?!K9RD:5!US>=L!9?!?SL!A9WL!?>WL!
3D Y L = ! S 9 A ! P R D A L C Q ? L ; ! ? S L ! C = 9 > W A ! 9 : ; ! @ D R C > Z = X !ADQYS?!?D!=>_Q>;9?L!CDWP9:X!9AAL?A!?D!
P9X! jK9RD:T! C=9>WA6! ! +>W>=9R=X5! >:! 9C?>:Y! 9A! RLCL>BLR! ZD?S! D@! K9RD:! 9:;! D@!
,A>9&RQA?5!3DYL=!>A!C=L9R=X!CD:@=>C?L;!DBLR!?SL!9;BLRAL!C=9>WA!D@!,A>9&RQA?!9Y9>:A?!
K9RD:5!9:;!?D!C=9>WA!ZX!@DRWLR!9??DR:LXA!LWP=DXL;!ZX!,A>9&RQA?!USD!ALLV!?D!W9VL!
K9RD:!PLRAD:9==X!=>9Z=L!@DR!?SL!@LLA!;QL!@RDW!,A>9&RQA?6!!&SL!0>@?S!.>RCQ>?!S9A!SL=;!
?S9?!f[O]SLRL!9:!9C?Q9=!CD:@=>C?!D@!>:?LRLA?!Le>A?A5!:D!WDRL!:LL;!ZL!ASDU:!>:!?S>A!
?XPL! D@! C9AL! ?D! AQPPDR?! 9! ;L:>9=! D@! CDWPL:A9?>D:6g! Matter of Consolidated
Bancshares, Inc.5! bHa! 06^;! #^`G5! #^a\! ca?S! .>R6! #GH\d6! ! &SL! +QPRLWL! .DQR?! S9A!
LeP=9>:L;!?SL!RQ=L!9A!@D==DUAN!
f[-]L9AD:9Z=L! CDWPL:A9?>D:! @DR! ALRB>CLA! RL:;LRL;g! :LCLAA9R>=X! >WP=>LA! =DX9=!
9:;! ;>A>:?LRLA?L;! ALRB>CL! >:! ?SL! >:?LRLA?! D@! ?SDAL! @DR! USDW! ?SL! C=9>W9:?!
PQRPDR?L;!?D!9C?6!American United Mutual Life Ins. Co. v. City of Avon Park5!
E##!)6+6!#EH6!OSLRL!9!C=9>W9:?5!t!U9A!ALRB>:Y!WDRL!?S9:!D:L!W9A?LR!DR!U9A!
AQZkLC?! ?D! CD:@=>C?>:Y! >:?LRLA?A5! SL! ASDQ=;! ZL! ;L:>L;! CDWPL:A9?>D:6! $?! >A! :D!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 21 of 27 PageID 41368
!
"^^"
9:AULR! ?D! A9X! ?S9?! @R9Q;! DR! Q:@9>R:LAA! ULRL! :D?! ASDU:! ?D!S9BL!RLAQ=?L;6!Cf.
Jackson v. Smith5!^a`!)6+6!aH\5!aHG6!
!
Woods v. City Nat. Bank & Trust Co. of Chicago5!E#^!)6+6!^\^5!^\H!c#G`#d6!
%D?9Z=X5!3DYL=!>A!9=AD!CD:@=>C?L;!9A!9!@>;QC>9RX!9:;!P9R?:LR!D@!M9R;LRL6!/:!S9:;!9A!
9! @>;QC>9RX! @DR! M9R;LRL! 3DYL=! >A! CS9RYL;! U>?S! W9e>W>q>:Y! ?SL! @LLA! RLCL>BL;! ZX!
M9R;LRL!9:;!P9>;!9!ZD:QA!Z9AL;!D:!?SL!WDRL!SL!Z>==A!D:!M9R;LRLTA!ZLS9=@6!!,?!?SL!
A9WL!?>WL5!3DYL=!>A!CS9RYL;!9A!9!@>;QC>9RX!@DR!?SL!RLCL>BLRAS>P!LA?9?LA!9:;!S9A!?SL!
CD:@=>C?>:Y! ;Q?X! ?D! CD:ALRBL!LA?9?L!PRDPLR?X!9:;!W>:>W>qL!Q::LCLAA9RX!@LLA!9:;!
CS9RYLA6!!!
0>:9==X5!3DYL=! 9:;! S>A!@>RW!ASDQ=;!:D?!ZL!P9>;! @RDW!RLCL>BLRAS>P!9AAL?A!@DR!
UDRV!;D:L!>:!;L@L:;>:Y!3DYL=!DR!>:!L:Y9Y>:Y!>:!9!CD:?RDBLRAX!U>?S!P9R?>LA!?D!?SL!
=9UAQ>?6!E.g6! In re Marcuse & Co.5!##!06^;!a#E5! a#\! cb?S!.>R6#G^\d!c?SL!RLCL>BLR!
S9A!DR;>:9R>=X!:D!kQA?>@>C9?>D:!@DR!L:Y9Y>:Y!>:!9!CD:?RDBLRAX!U>?S!D:L!USD!C=9>WA!
9;BLRAL=X!?D!S>W!9:;!ZLC9QAL!f?SL!RLCL>BLR!U9A!U>?SDQ?!9Q?SDR>?X!?D!P9R?>C>P9?L!>:!
?SL!=>?>Y9?>D:!>:BD=B>:Y!?SL!t!=>9Z>=>?X!D@!?SLAL!WL:5!?SLRL!ASDQ=;!ZL!:D!9==DU9:CL!
9Y9>:A?!?SL!LA?9?L!D@!9??DR:LXrA!@LLA!@DR!AQCS!ALRB>CLA6gdp!United States v. Larchwood
Gardens, Inc.5!`^F!06^;!aE#5!aE`"aEa!cER;!.>R6!#GbFd!cf?SL!RLCL>BLRAr!LePL:ALA!9:;!
CDA?A! >:! ;L@L:;>:Y! ?SL>R! 9==DU9:CLA! D:! 9PPL9=! 9RL! :D?! PRDPLR! CS9RYLA!9Y9>:A?! ?SL!
RLCL>BLRAS>P!LA?9?Lgd6!
+CD($EB9C(.KD@AKD@9(`:DG9E?@(
K9RD:! RLPL9?L;=X! WDBL;! >:! ?SL! *>A?R>C?!.DQR?!?D!ZL!9==DUL;!9CCLAA!?D!S>A!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 22 of 27 PageID 41369
!
"^E"
DU:!WD:LX!>:!DR;LR!?D!S>RL!9??DR:LXA!?D!RLPRLAL:?!S>W6!(6Y65!-6!^b^Fp!+-6!B^!PEH`"
EGF!c*DC!^\`dp!+-6!Ba!P#EG!c*DC!``ad6!!'DULBLR5!?SL!*>A?R>C?!.DQR?!;>;!:D?!9==DU!
K9RD:! ?D! S>RL! CDQ:AL=6! (6Y65! *DC! E#\! c+-6! B`! P##Gd6! ! K9RD:! S9A! W9;L! 9! A>W>=9R!
WD?>D:!ZL@DRL!?SL!0>@?S!.>RCQ>?6!!&S9?!WD?>D:!>A!PL:;>:Y!RQ=>:Y5!9:;5!?D!?S>A!PD>:?5!
K9RD:! S9A! :D?! ZLL:! PLRW>??L;! ?D! c#d! (9R:! U9YLA! 9:;! L:Y9YL! >:! ZQA>:LAA!
?R9:A9C?>D:A!?D! L9R:!WD:LX! ?D!P9X! 9:!9??DR:LXp! c^d! KL!9==DUL;! 9CCLAA!?D! S>A!DU:!
WD:LX!SL=;!ZX!?SL!RLCL>BLR!?D!P9X!9:!9??DR:LX!?D!RLPRLAL:?!S>Wp!:DR!cEd!'>RL!P9>;!
=LY9=! CDQ:AL=6! ! ! 'DULBLR5! ?SL! 0>@?S! .>RCQ>?! S9A! SL=;! ?S9?! 9! C>B>=! =>?>Y9:?! S9A! 9!
CD:A?>?Q?>D:9=!R>YS?!?D!RL?9>:!S>RL;!CDQ:AL=6!Potashnick v. Port City Const. Co.5!\FG!
06^;! ##F#5! ##F`! ca?S! .>R6! #GHFd6! ! 8DRLDBLR5! ?SL! 0>@?S! .>RCQ>?! S9A! SL=;! ?S9?! f?SL!
R>YS?! ?D! CDQ:AL=! >A! D:L! D@! CD:A?>?Q?>D:9=! ;>WL:A>D:A! 9:;! ASDQ=;! ?SQA! ZL! @RLL=X!
LeLRC>AL;!U>?SDQ?!>WP>:YLWL:?6g!$;6!9?!###Hp!!Mosley v. St. Louis Southwestern Ry.5!
\E`! 06^;! G`^5! G`\! ca?S! .>R6! #GH#d6! ! !,:! >:;>B>;Q9=rA! RL=9?>D:AS>P! U>?S! S>A! DR! SLR!
9??DR:LX! f9C?A! 9A! 9! CR>?>C9=! ZQ@@LR! ZL?ULL:! ?SL! >:;>B>;Q9=! 9:;! ?SL! PDULR! D@! ?SL!
+?9?L6g!Johnson v. City of Cincinnati5!E#F!06E;!`H`5!aF#!c\?S!.>R6!^FF^d6!!!0QR?SLR5!
?SL! +QPRLWL! .DQR?! S9A! SL=;! ?S9?! 9! P9R?X! WQA?! ZL! 9@@DR;L;! 9! @9>R! DPPDR?Q:>?X! ?D!
ALCQRL!CDQ:AL=!fD@!S>A!DU:!CSD>CLg!9:;!?S9?!9PP=>LA!f>:!9:X!C9AL5!C>B>=!DR!CR>W>:9=g!
9A!9!;QL!PRDCLAA!R>YS?!f>:!?SL!CD:A?>?Q?>D:9=!AL:ALg6!Powell v. Alabama5!^Hb!)6+6!
`a5!aE"\G!c#GE^d6!&S9?!Z9A>C!R>YS?!U9A!;L:>L;!K9RD:!ZX!?SL!*>A?R>C?!.DQR?5!9:;!>A!
PL:;>:Y!RQ=>:Y!ZX!?SL!0>@?S!.>RCQ>?6!!!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 23 of 27 PageID 41370
!
"^`"
,A! 9! @Q:;9WL:?9=! CDR:LRA?D:L! D@! *QL! 4RDCLAA5! ?SL! .D:A?>?Q?>D:! YQ9R9:?LLA!
LBLRX! C>?>qL:! ?SL! R>YS?! ?D! 9! WL9:>:Y@Q=! DPPDR?Q:>?X! ?D! ZL! SL9R;! >:! 9! WL9:>:Y@Q=!
W9::LR6!Williams v. McKeithen5!GEG!06^;!##FF5!##Fa!ca?S!.>R6!#GG#d6!!,A!9!W9??LR!
D@!LA?9Z=>ASL;!=9U5!?S>A!WL9:A!9CD(>E=C9(9?(OD(>DI>DGD@9DA(OP(I7EA
(;D=7;(8?:@GD;6!
E.g.5! Mosley5! \E`! 06! ^;! 9?! G`\p! Powell5! ^Hb! )6+6! 9?! aEp! Chandler v. Fretag5! E`H!
)6+6! E5! #F! c#Ga`dp! Potashnick v. Port City Const. Co.5!\FG! 06^;! ##F#5! ##F`!ca?S!
.>R6! #GHFd6! ! $:! ?SL! >:A?9:?! PRDCLL;>:YA5! IL@@RLX! K9RD:! >A! ZL>:Y! ;L:>L;! ?S>A!
@Q:;9WL:?9=! R>YS?6! ! ,CCDR;>:Y=X! ?SL! AQZA?9:?>BL! WD?>D:A! PL:;>:Y! 9Y9>:A?! K9RD:!
9:;!S>A!PRDPLR?X!US>=L!SL!>A!ZL>:Y!;LPR>BL;!D@!S>A!Z9A>C!CD:A?>?Q?>D:9=!R>YS?!?D!P9X!
9:!9??DR:LX!?D!RLPRLAL:?!S>W!ASDQ=;!ZL!;L:>L;6!!KLC9QAL!?SL!Q:;LRA>Y:L;!>A!9!AD=D!
PR9C?>?>D:LR! U>?S! :D! @Q:;>:Y! @DR! ;>ACDBLRX!DR!W9:PDULR!?D!PLR@DRW!>?LW>qL;!
RLB>LU! D@! @LL! 9PP=>C9?>D:A5! DR! W9:PDULR! ?D! 9??L:;! 9==! D@! ?SL! B9R>DQA! Z9:VRQP?CX!
CDQR?! PRDCLL;>:YA5! L?C65! ?SL! RLPRLAL:?9?>D:! PRDB>;L;! K9RD:! >A! =>W>?L;! >:! ACDPL! ?D!
9PPL==9?L!=LY9=!>AAQLA6!!K9RD:!>A!L:?>?=L;!9A!9!W9??LR!D@!CD:A?>?Q?>D:9=!R>YS?!?D!WDRL6!!
,! C>?>qL:! >A! L:?>?=L;! ?D! QAL! ?SL>R! DU:! WD:LX! ?D! S>RL! P9>;! =LY9=! CDQ:AL=! ?D! @Q==X!
RLPRLAL:?!?SLW5!>:C=Q;>:Y!CD:;QC?>:Y!;>ACDBLRX5!9??L:;>:Y!SL9R>:YA5!RLB>LU>:Y!=>:L!
ZX!=>:L!>?LWA!D:!@LL!9PP=>C9?>D:A5!S>R>:Y!LePLR?!U>?:LAALA!?D!PRDB>;L!LB>;L:CL!?S9?!
@LL!RL_QLA?A!9RL!:D?!RL9AD:9Z=L5!?D!>:BLA?>Y9?L!?SL!C=9>WA!9Y9>:A?!?SLW5!L?C6!!!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 24 of 27 PageID 41371
!
"^a"
-97@A7>A(E@(1>7@9E@=(-97P(0D@AE@=(.IID7;(
!&SL!0>@?S!.>RCQ>?!S9A!9;DP?L;!?SL! @DQR! @9C?DR! ?LA?! AL?! DQ?! >:! Virginia
Petroleum Job. Ass'n v. Federal Power Com'n5! ^aG! 06^;! G^#! c*.! .>R6! #GaHd! ?D!
;L?LRW>:L!USL?SLR!A?9X!PL:;>:Y!9PPL9=!ASDQ=;!ZL!YR9:?L;6!!Belcher v. Birmingham
Trust National Bank5! EGa! 06^;! \Ha! ca?S! .>R6! #G\Hd6! ! &SDAL! @9C?DRA! 9RLN!
c#d!2>VL=>SDD;!D@!AQCCLAA!D:!?SL!WLR>?Ap!c^d!,!ASDU>:Y!D@!>RRLP9R9Z=L!>:kQRX!>@!?SL!
A?9X! >A! :D?! YR9:?L;p! cEd! OSL?SLR! YR9:?>:Y! ?SL! A?9X! UDQ=;! AQZA?9:?>9==X! S9RW! ?SL!
D?SLR!P9R?>LAp!9:;!c`d!MR9:?>:Y!D@!?SL!A?9X!UDQ=;!ALRBL!?SL!PQZ=>C!>:?LRLA?6!!Id.
0>RA?5! ?SL! AQZA?9:?>BL! WLR>?A! D@! ?SL! =>_Q>;9?>D:! 9:;! RLCL>BLRAS>P! 9;;RLAAL;!
9ZDBL5! LA?9Z=>AS! 9! C=L9R! =>VL=>SDD;! D@! LBL:?Q9=! AQCCLAA! D:! ?SL! WLR>?A6! ! +LCD:;=X5!
>RRLP9R9Z=L!>:kQRX!>A!LA?9Z=>ASL;!9A!9!W9??LR!D@!=9U5!9A!%DBD!4D>:?!22.!W9X!S9BL!
:D!R>YS?!?D!9PPL9=!9!A9=L!?S9?!S9A!ZLL:!CD:AQWW9?L;6!!See Lee-Vac, Ltd.5!\EF!06^;!
9?! ^`b6! ! +SLRW9:! 9:;! 3DYL=! S9BL! ZD?S! 9RYQL;! ?S>A! PDA>?>D:6! ! ! &S>R;5! ?SLRL! >A! :D!
S9RW!?D!9:X!P9R?X!C9QAL;!ZX!YR9:?>:Y!?SL!A?9X6!!!0>:9==X5!?SL!PQZ=>C!>:?LRLA?!>A!ALRBL;!
>:!9==DU>:Y!9!CDWP9:Xn:D?!>:!Z9:VRQP?CXn!?D!9PPL9=!9!CDQR?TA!DR;LR!?D!=>_Q>;9?L!
?SL>R!9AAL?A6!!+CD>D(EG(7(G:OG97@9E7;(AEG>:I9EHD(DBBD89(9?(8?KKD>8D
(E@(7;;?_E@=(7(
Q:A=D(I?_D>(9?(DBBD89EHD;P(AEGG?;HD(8?KI7@EDG(@?9(E@(O7@<>:I98P(OP(;EF:EA79E@=(
9CDE>(7GGD9Gm_CD@(@?(8;7EKG(C7HD(ODD@(I;DA(7=7E@G9(9CDK##(7@A(DKI?_D>E@=(7(
8?:>9( 9?( I>DHD@9(7IID;;79D( >DHED_( ?B( G:8C(?>AD>G(OP(789E@=(9?(;EF:EA79D(ODB?>D(
9CD(K799D>(87@(OD(7IID7;DA5(
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 25 of 27 PageID 41372
!
"^\"
2*,2&3-%*,(
!! &SL! *>A?R>C?! .DQR?! U9A! A?9XL;! @RDW! =>_Q>;9?>:Y! ?SL! 9AAL?A! D@! %DBD!
4D>:?!22.5! 9:;! hQ9:?LC! 22.6! !&SL! *>A?R>C?!.DQR?!?SL:!9;B>AL;!?SL!0>@?S!.>RCQ>?!
?S9?!>@!9==DUL;!?D!RQ=L!D:!?SL!WD?>D:A!?D!AL==!?SL!;DW9>:!:9WL!9AAL?A!>?!UDQ=;!A?9X!
?SL!A9=LA!?D!9==DU!9PPL9=6!!%L>?SLR!%DBD!4D>:?!22.!:DR!hQ9:?LC!22.!U9A!?SL!P9R?X!
?D!9:X!C=9>W!>:!?SL!*>A?R>C?!.DQR?6!!&SL!=>_Q>;9?>D:!?SRL9?L:A!CDWP=L?L!;LA?RQC?>D:!
D@!?SL!CDWP9:>LA5!Y>B>:Y!9U9X!QP!?D!o\F!8>==>D:!DR!WDRL!>:!9AAL?A!@DR!oF6F^!CL:?A!
D:! ?SL! ;D==9R! >:! ALCRL?5! PR>B9?L! A9=LA6! ! &SL! 9PPL9=! D@! ?SL! RLCL>BLRAS>P! U>==! ZL!
WL9:>:Y=LAA!>@!?SL!CDWP9:>LA!9RL!9==DUL;!?D!ZL!=>_Q>;9?L;!ZL@DRL!?SL!B9=>;>?X!D@!?SL!
RLCL>BLRAS>P!>A!;L?LRW>:L;!D:!9PPL9=6!
!
O'(-(0/-(5!IL@@!K9RD:!RL_QLA?A!?SL!.DQR?!?D!>WWL;>9?L=X!A?9X!?SL!A9=L!D@!
9==!;DW9>:!:9WLA!PL:;>:Y!RLAD=Q?>D:!D@!?SL!>AAQLA!D:!9PPL9=!?D!?SL!0>@?S!.>RCQ>?6!!
!!
-LAPLC?@Q==X!AQZW>??L;5!
!
!lAl!M9RX!%6!+CSLPPA
!
M9RX!%6!+CSLPPA!
&Le9A!+?9?L!K9R!%D6!FFbG#\FH!
*R9ULR!\bFHF`!
*9==9A5!&Le9A!baE\b!
c^#`d!^#F"aG`F!"!&L=LPSD:L!
c^#`d!E`b"`FE#!"!09CA>W>=L!
("W9>=N!=LY9=uACSLPPA6:L?!
2*3,-"&($*!(\"$$(4.!*,(
(
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 26 of 27 PageID 41373
!
"^b"
2"!+%$%2.+"(*$(-"!a%2"(
&S>A!>A!?D!CLR?>@X!?S9?!?S>A!;DCQWL:?!U9A!ALRBL;!?S>A!;9X!D:!9==!P9R?>LA!USD!RLCL>BL!
:D?>@>C9?>D:!?SRDQYS!?SL!.DQR?TA!L=LC?RD:>C!@>=>:Y!AXA?LW6!
.(-&$0$(*!KJN! lAl!M9RX!%6!+CSLPPA
!
!!!!!!M9RX!%6!+CSLPPA!
!
!
!
!
2"!+%$%2.+"(*$(2*,$"!",2"(
&S>A! >A! ?D! CLR?>@X! ?S9?! ?SL! Q:;LRA>Y:L;! 9??LWP?L;! ?D! CD:@LRRL;! U>?S! CDQ:AL=! @DR!
+SLRW9:!9:;!3DYL=!ZX!("W9>=6!!!
.(-&$0$(*!KJN! lAl!M9RX!%6!+CSLPPA
!
!!!!!!M9RX!%6!+CSLPPA!
!
Case 3:09-cv-00988-F Document 817 Filed 02/01/12 Page 27 of 27 PageID 41374

Leave a Reply