Scotty's Contr Stone v. United States ( 2003 )

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH   6FRWW\jV&RQWUDFWLQJDQG 1R (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU 6WRQH,QFY8QLWHG6WDWHV )LOH 1DPH DS BBBBBBBBBBBBBBBBB 81,7('67$7(6&28572)$33($/6 &2816(/ )257+(6,;7+&,5&8,7 $5*8('  5REHUW & :HEE )5267 %52:1 72'' BBBBBBBBBBBBBBBBB //&/RXLVYLOOH.HQWXFN\IRU$SSHOODQWsXGLWK$+DJOH\ '(3$570(17 2) s867,&( 7$; ',9,6,21 :DVKLQJWRQ '& IRU $SSHOOHH  21 %5,()  5REHUW & 6&277 D@sXVWLFH'HSDUWPHQWUHIHUUDOLV ZKLFKDOORZVLQTXLU\LQWRµDQ\RIIHQVHjVRORQJDVWKHFDVH LQ HIIHFWl DV WKH WLPH ZKHQ WKH ,56 mUHFRPPHQG>V@ WR WKH KDVQRWEHHQWXUQHGRYHUWRWKHsXVWLFH'HSDUWPHQWl8QLWHG $WWRUQH\*HQHUDODJUDQGMXU\LQYHVWLJDWLRQRIRUWKHFULPLQDO 6WDWHVY6FKPLGW)GQWK&LU SURVHFXWLRQRIVXFKSHUVRQlRUZKHQmDQ\UHTXHVWLVPDGH UHO\LQJRQOHJLVODWLYHKLVWRU\/D0XUDY8QLWHG6WDWHV XQGHUVHFWLRQK%IRUWKHGLVFORVXUHRIDQ\UHWXUQ )G   Q  WK &LU  UHO\LQJ RQ OHJLVODWLYH 1R 6FRWW\jV&RQWUDFWLQJDQG   6FRWW\jV&RQWUDFWLQJDQG 1R 6WRQH,QFY8QLWHG6WDWHV 6WRQH,QFY8QLWHG6WDWHV KLVWRU\WRFRQFOXGHWKDW&RQJUHVVDPHQGHG†LQ &R  86 DW  KROGLQJ WKDW WKH &RXUW PD\ QRW EHFDXVH WKH UXOH DQQRXQFHG LQ /D6DOOH 1DWLRQDO %DQN FLUFXPVFULEHWKHEURDGDXWKRULW\JUDQWHGWKH,56E\† mVSDZQHG SURWUDFWHG OLWLJDWLRQ DQG IUXVWUDWHG WKH VXPPDU\ ,QDQ\HYHQWWKHKROGLQJLQ6WXDUWLVQRWFRQWUDU\WRDQGLVLQ QDWXUHRIHQIRUFHPHQWSURFHHGLQJVl IDFWFRQVLVWHQWZLWKRXUFRQFOXVLRQWKDWWKH,56PD\YDOLGO\ LVVXH VXPPRQVHV IRU WKH SXUSRVH RI LQYHVWLJDWLQJ FULPLQDO 6FRWW\jVKRZHYHUFRQWHQGVWKDWWKHRSSRVLWHFRQFOXVLRQLV RIIHQVHVHYHQLIWKDWLVWKHVROHSXUSRVHVRORQJDVWKHUHLVQR VXSSRUWHGE\6XSUHPH&RXUWSUHFHGHQW6FRWW\jVFLWHV8QLWHG sXVWLFH'HSDUWPHQWUHIHUUDOLQHIIHFW 6WDWHV Y 6WXDUW  86    LQ ZKLFK WKH 6XSUHPH &RXUW KHOG WKDW †  GRHV QRW SUHYHQW WKH ,56 6FRWW\jV DOVR UHOLHV XSRQ WZR SUHYLRXV 6L[WK &LUFXLW IURPLVVXLQJVXPPRQVHVSXUVXDQWWRDWUHDW\ZLWK&DQDGDIRU RSLQLRQVLQVXSSRUWRILWVSRVLWLRQ1HLWKHURIWKHVHRSLQLRQV WKHSXUSRVHRILQYHVWLJDWLQJFULPLQDOYLRODWLRQVRI&DQDGLDQ KRZHYHUDGGUHVVHVWKHLVVXHRQDSSHDOKHUH,Q8QLWHG6WDWHV WD[ODZ%HIRUHUHDFKLQJWKLVKROGLQJWKH&RXUWGLVFXVVHG Y%HHEH)GWK&LUWKLVFRXUWDIILUPHGD /D6DOOH1DWLRQDO%DQNjVKROGLQJmWKDWWKH,56PD\QRWLVVXH GLVWULFW FRXUWjV ILQGLQJ WKDW WKH ,56 DFWHG LQ EDG IDLWK E\ D VXPPRQV RQFH LW KDV UHFRPPHQGHG SURVHFXWLRQ WR WKH LVVXLQJDVXPPRQVWRDLGDSXUHO\FULPLQDOLQYHVWLJDWLRQ7KH sXVWLFH'HSDUWPHQWQRUPD\LWFLUFXPYHQWWKLVUHTXLUHPHQW %HHEHFRXUWKRZHYHUVLPSO\FLWHG/D6DOOH1DWLRQDO%DQN E\ GHOD\LQJ VXFK D UHFRPPHQGDWLRQ LQ RUGHU WR JDWKHU ZLWKRXWGLVFXVVLQJWKHDPHQGPHQWWR†,GDW DGGLWLRQDOLQIRUPDWLRQl,GDW7KH&RXUWLQ6WXDUW 1RWKLQJ LQ WKH %HHEH RSLQLRQ VXJJHVWV WKDW WKH FRXUW ZDV WKHQ VWDWHG LQ GLFWD UHOLHG XSRQ E\ 6FRWW\jV WKDW WKH  SUHVHQWHGZLWKWKHLVVXHRILQWHUSUHWLQJ†DVDPHQGHGLQ DPHQGPHQWWR†mFRGLILHGWKHHVVHQFHRIRXUKROGLQJl   5DWKHU E\ FLWLQJ /D6DOOH 1DWLRQDO %DQN ZLWKRXW LQ/D6DOOH1DWLRQDO%DQN,GDW PHQWLRQLQJWKHDPHQGPHQWWR†WKH%HHEHFRXUW ZDVDSSDUHQWO\DSSO\LQJ†DVLWH[LVWHGEHIRUH,Q $OWKRXJKWKH6WXDUW&RXUWGLGQRWH[SOLFLWO\FODULI\ZKDWLW DQ\HYHQWWKH%HHEHRSLQLRQGRHVQRWRIIHUDQ\JXLGDQFHLQ YLHZHGDVWKHmHVVHQFHlRIWKHKROGLQJLQ/D6DOOH1DWLRQDO %DQNLWLVDSSDUHQWWKDWWKH&RXUWZDVUHIHUULQJWRWKHSRUWLRQ RIWKHKROGLQJLQ/D6DOOH1DWLRQDO%DQNWKDWWKH,56PD\QRW LVVXHDVXPPRQVRQFHLWKDVUHFRPPHQGHGSURVHFXWLRQWRWKH sXVWLFH'HSDUWPHQW&UXFLDOWRWKH&RXUWjVGHFLVLRQWRXSKROG  :KLOH WKH %HHEH FRXUW ZDV QRW H[SOLFLW UHJDUGLQJ ZKLFK YHUVLRQ RI †  LW ZDV DSSO\LQJ WKH JRYHUQPHQWjV EULHI LQ WKH %HHEH FDVH FRQILUPV HQIRUFHPHQW RI WKH VXPPRQVHV DW LVVXH LQ 6WXDUW ZDV WKH WKDW WKH FRXUW ZDV DSSO\LQJ †  DV LW H[LVWHG EHIRUH  $V &RXUWjVVWULFWLQWHUSUHWDWLRQRI†GZKLFKSURYLGHVWKDW DGGHQGXP & WR LWV EULHI LQ WKH SUHVHQW FDVH WKH JRYHUQPHQW VXEPLWWHG D WKH,56PD\QRWLVVXHDVXPPRQVRQFHDmsXVWLFH'HSDUWPHQW FRS\ RI D SDJH RI LWV EULHI LQ WKH %HHEH FDVH 7KLV H[FHUSW PDNHV FOHDU WKDW LQ WKH %HHEH FDVH WKH JRYHUQPHQW FRQFHGHG WKDW WKH  DPHQGPHQW UHIHUUDO LV LQ HIIHFWl  %HFDXVH WKHUH ZDV QR sXVWLFH WR †  ZDV QRW DSSOLFDEOH EHFDXVH WKH VXPPRQV LQ %HHEH ZDV LVVXHG 'HSDUWPHQWUHIHUUDOLQHIIHFWWKH&RXUWLQ6WXDUWIRXQGWKDW SULRU WR WKH HIIHFWLYH GDWH RI WKH  DPHQGPHQW :H WDNH MXGLFLDO QRWLFH †GLGQRWEDUHQIRUFHPHQWRIWKHVXPPRQVHVHYHQLIWKH RI WKLV SDJH RI D EULHI VXEPLWWHG DV SDUW RI WKH SURFHHGLQJV LQ D GLIIHUHQW &DQDGLDQWD[LQYHVWLJDWLRQKDGUHDFKHGDVWDJHDQDORJRXVWR FDVH 6HH /\RQV Y 6WRYDOO  )G   Q WK &LU  WDNLQJ DsXVWLFH'HSDUWPHQWUHIHUUDO,GDW7KH&RXUWIRXQG MXGLFLDO QRWLFH RI EULHIV WKDW KDYH EHHQ ILOHG ZLWK D FRXUW RI UHFRUG 6FRWW\jV FRUUHFWO\ DVVHUWV WKDW MXGLFLDO QRWLFH RI D IDFW LV JHQHUDOO\ RQO\ mQRUHDVRQWRWKLQNWKDW>†G@PHDQVPRUHWKDQLWVD\Vl DSSURSULDWH ZKHQ WKHUH LV QR GLVSXWH UHJDUGLQJ WKH IDFW 6HH HJ ,OKDUGW DQGWKHKROGLQJLQ6WXDUWGHPRQVWUDWHVWKDWWKH&RXUWZLOOQRW Y 6DUD /HH &RUS  )G   WK &LU  6FRWW\jV FUHDWH DQ DGGLWLRQDO H[FHSWLRQ WR WKH ,56jV VXPPRQVLQJ KRZHYHU GRHV QRW GLVSXWH WKH UHOHYDQW IDFW WKDW WKH JRYHUQPHQW VXEPLWWHG DXWKRULW\XQGHU†,GDWVHHDOVR$UWKXU