Damian v. International Metals Trading & Investments, Ltd. et al

Filing 70

ORDER AND OPINION DENYING 62 Motions for Summary Judgment. Signed by Judge Donald M. Middlebrooks on 7/13/2017. (lrz1)

I THE UNI
N
TED STATES DI
STRI CO URT
CT
FOR TH E SOUTHERN DI
STRI OF FLORI
CT
DA
Cas No.1: 6- 20343- M
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LEGAL STAN DARD

Sf ec u ts alg a ts mma yj d me ti t mo a ts o t a te ei n g n ie
k' o r h l rn u r u g n f he v n h ws h t h r s o e un
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ds uea t a y maeilfc a dt emo n i e tt dt j d me a amatroflwm Fe
ip t s o n tra a t n h va t s nil o u g nt s te a ' d.
e
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R.Ci P.56() The mova S l
v.
a.
nt i waysbe r t i talr ponsbiiy ofi omi t ditit
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a s he nii es i lt
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cou tof t ba i f is moton,a i ntf ng t e pori of the pl a ngs de ii ,
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a we st i e r t i s a a isonson fl t et wih t a fdavis i a 'whih i
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ie, og her t he fi t , f ny,
c t
bele de o tat t a e ofa gen ne is ofm a e i f t' Ceotx Cor v Catet
ives m nsr e he bs nce
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t ral ac . ' l e
p. . r t,

477 U. 31 323 ( 986)( i Fe R.Ci P.56()1( ) W he et non- ng pa t
S. 7,
1
quotng d.
v.
c( )A).
r he movi ry

b ast eb r e o p o fo a is ta til temo a tma smpy tponlo tt t dsrc
e r h u d n f r o n n s u t ra,h v n y i l ' i t u o he itit
l
c u t( t a teei a a s n eo e d n et s p o tt n n vn p ry sc s . I a 3 5.
o r 1 h t h r s n b e c f vie c o u p r he o mo ig a t' a e' d t 2
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Afe t emo a th sme isb r e u d rRue 5 () t b r e s i t t eno - v n p ry
tr h v n a t t u d n n e l 6c ,he u d n hhs o h n mo i g a t

3

t e tbls t tt r i a genui is of ma e i f t M at s t Elc.I .Co. Lt
o sa ih ha he e s
ne s ue
t ral ac .
su hia e ndus
, d

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v.

Ze ihRa i Co p.4 U. 5 4, 8 ( 9 6 ,
nt do r , 75 S. 7 5 5 1 8 )
Alhough a lr as bl i er nc ar t be dr
t
l e ona e nf e es e o
awn i f vor of t nonn a
he
movi pa t ,
ng ry
An r on v Ld r.y fobb l . 477 U. 2 255 ( 98 , henonde s . :e r
y, nc,
S, 42,
1 6) t
movi pat ' tdomor
ng ry '
mus
e

t n smpl s
ha i y how t tt r i s
ha he e s ome m e a ialdoubta t t ma e i f t.' M at ushia,
t physc
s o he t ral ac s '
s t
475 U. a 586. Thenon- ngpary may notr tupon t me e alegai orde al oft
S. t
movi
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a r epa t spl di ,b i t a mus co e f war wih i pe fc f ct s
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s
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i age un is e o /ï/' I a 5 7(iigFe .R. v. 5 ().i h r t er c r tk n a
s n ie su f r rJ . d t 8 ctn d Ci P. 6 e ) i ee h e o d a e s
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a whol c d not lad a r to ltir of f c t fnd f t none oul
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ai na re
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movi pa t , t r i n
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$ m e e tci il ofevi nce s
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p sto wi n ts fie t eemu tb e o h o as wi gt a t j r c ul ra o a y tn
o iin l o u fc ; h r s e n ug f ho n h t he u y o d e s n bl s d
l
f t tpary. Wale v.Darb 911F. 1 1 ( 1h Ci.1 .I t non- ngpa t
or ha t ' k r
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2d 573, 577 1 t r 990) f he movi ry
f l t ma a s tcint s
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ng
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b r e o p o f t mo n p ry i e t ldt aj d me a amatroflw. Ceoe Cop.
u d n f r o , he vig at s n ie o u g nt s
t
te a
l tx r ,
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S. t
11
1.

DI
SCUSSI
ON

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ng m d dm te
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l 6 a r vd s h t fe n
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drce s r e o t er q e tn p ryawrte a we o o j cina d e s dt t ematra d
ie td e v s n h e u si g a t
i n ns r r b e to d rs e o h te n
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he ry t tonwy. Fe R.Ci R.36()3)
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i n n wee rq e t s r e )a te 'd sinso tl.' Untd Sa e v 2 4Ba b r La e
l a s r d e u ss ev g s h a miso n 5e' i tts . 20 r a a n ,
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5,
r aa n
u t c n wld e h t t y e n p r p it o ey n
unans r RFAS i t tde e nt ne r r c ve a t l or consr c i notc of' t i
we ed
f he i f nda
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ie
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a e o e h t u o tc d sins r usiid e h e p n i g ry a n a e n
t l or tctcs' 1 Her ,Pe r ha t re an e fce r ol i oft s c e a m uli e
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eudi d
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t DE ) n
Nove r 201 whih wa pe ng f t wee ,whe Pe r appe e f t fr ttm e t
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aul nd raed
Per sr pons a a Ans ra Afimatve Deens ( 31. Si e t Per ha not
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l ga c l i r t rt n t f c s o a ia i ofl w t f t . $ e 36 i a tme s ve ,
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e in d o x dt h ra nd eiv h a t f h o t r vig/ c h t l o e
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und Los
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R. 675, E. Cal
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l
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lm .

A. Fr d e Tr ns r
au ulnt a fe
The Re i r ar ue t t De e ant ar be i i re of a fa e ta f r unde
ceve g s ha
f nd s e nefc a i s
r udulnt r ns e
r

Caion as Unio m F a d ln Tr n fr Ac ( TA) Sh p ns s e iial t Se to
lfr i '
f r r u ue t a se t UF . e oit p cfc ly o cin
3 0 oft Calf m i Ci lCode whih r de sata f rvoi bl ' t acr dior wheher
439.4 he io a vi
, c en r r ns e da e i o e t , t
as
t c e t ' cai a os be or orafe t ta f w a m a ort oblgai w a i ure '
he r diors l m r e f e
tr he r nser s de he i ton s nc r d'

u rc rancic tnc .Ann.Cal Ci Codej3 04( .Theea et poe i t re
nde e ti rumsa es
. v.
439. *
r r wo tntalheois
coo aed i t dicove y pr es a m a onl c l or de a
per t n he s r oc s nd de y onc us y m nds t t t s c e be
ha hi as
dim is d.
s se
6

unde l ng sa ut y fa ent ta f : S t fa 'a ' ons r i fa .' Done l p
ryi tt or r udul r nser t ual r ud' nd s tuctve r ud '
ac
c
l .

Ko l,5 3F.d 7 2 7 ( t Ci.2 0 ) TheRe ev rcamst a boh a pl t teta se
wel 3 3 6 , 70 9 h r 0 8 .
c ie li h t t p y o h rn fr
m a t De e n sa sa ess pa at ca e ofa ton f ea h. Ia e se ch t y i t .
de o f nda t nd tt e r e us s c i or c
ddr s a heor n um

1, Se ton 3 0 a ( ) Ac ua Fr ud
c i 439.4( ) 1 : f l a
Thi s e ton saes t ta ta f r i fa e whe t de or m a t ta f r
s ubs c i t t ha r ns e s r udul nt
n he bt
kes he r ns e

Swlt a ta itn t hn e , t a , rderu a yce t ro t ed b o ' Ann.Cal Ci Code
: i cu ln e to id r d ly o fa d n rdi f h e t r '
l h
o
. v.
.

j3 3 .4 a( ) I tn t d fa di d q e to o fc t b d tr n d b ap e n rn eof
4 90 ()1. ne t o er u s i u sin f a t o e eemie y rpo dea c
a
t e de e.' I re Bev ry 374 B .R. 21 2 ( A. 9h Ci. 0 ) Th r i n q e to
he vi nc ' n
el
2 , 35 B. P. t r 2 07 . e e s o u sin

t t HW Cr t made a ta f r of $564, 59 t l e a i l M etl t oug f s par t
ha
edi
x nse
335. o nt m tona
a s hr h our e ae
che ks The r c d a s e t ihe t tI e ai lM etl ta f re t e fmds t Pe r .
c .
e or lo sabls s ha ntm tona
a s r ns e r d hes t
o ry

The quesi n i whehert r i undiputd e de t tt s ta f s we e ma wih t
to s
t he e s
s e vi nce ha he e r nser r
de t he
int t hi r deay,orde r ud a cr dioroft deb or' l Suc i e ca be a s
i ent o nde , l
i
f a ny e t
he t . ' d.
h nt nt n
s umed
whe e t c pia a is i a Po s heme. Donnel,533 F. a 770. Ho ver t i no
r he ons r cy t s ue s
nzi c
l
3d t
we , hat s t
ale d t bet c ehe e.
lge o he as r
The Re i r sed Pe r a i t t HW Entte m a tans e s t is deaer
cever eque t
ry dm t hat he
ii s de r f r o t
l s

wih t i e t hi r dely,o de r ud c t e s or c e t r . ( 6 - a ! 1 ) Of
t he nt nt o nde , a r fa
usom r
r dio s DE 2 2 t 1.
nec s iy,ha r s ca l f rPeryt s c a eon t i t ntoft HW Entte i ta a tons
e st t t eque t ls o
r o pe ult
he n e
he
ii s n r ns c i
wih ea h a e y one is de e s Butwihoutf t ri vesi ton on hi pa t Pe r woul
t c nd ver
t alr ,
t
urhe n tgai
s r, r y
d

ha knowldge onl a utt cr um sa s of hi own de i wih t HW Entte . As
ve
e
y bo he ic t nce
s
alngs t he
iis
dic s d a
s us e bove, hi RFA lkel e edst boundsofa r as bl i r t to c n expe t
t s
i y xce
he
e ona e nquiy ha ne a
c
ar s
e pondi pa t t ma SeeEngl d,253F. D a 685.
ng ry o ke.
un
R. t

Th Re ev ras r fr t t eCo r' f l u g n a ans t eHW Ent isi o d rt
e c ie lo ee s o h u ts na j d me t g i t h
ie n r e o
t
esa ih t ove a lor ni a i oft s me. Bu whehe t HW Entte ge r l ha a
t bls he r l ga z ton
he che
t
t r he
iis ne al d
y
fa e pum os i ma ng ta f r t t e de e sd note t ih whe he t ha s
r udulnt
e n ki r ns e s o hes alr oes
sabls
t r hey d uch

a pur e i ma ng t s pari a tanser t De e nt. Tha depe on t S ur o ng
pos n ki he e tculr r f s o f nda s
t
nds he l r undi
s
cic t e ,'whih ma va y a or ng t deaer Se I r Ez a,5 B,R.9 930r umsanc s'
c
y r cc di o
l.
e n e r 37
24,
31

( A. 9h Ci. 2 1 (our s d lok t saut iy enu r td i dges of fa 't
B. P. t r 0 5) c t houl o o tt orl
me ae t
ba
r ud' o
detr newhehe pa tculrta frwasfaudulnt Cont xti especily r evanther , w her
emi
t r ri a rnse
r
e )
e s
a l el
e
e
.

i i uncla wha r e De e n s pl d i t ove al s heme. The Re ei r a guest tt
ts
er
t ol f nda t aye n he r l c
c ve r
ha he

HW Entte c
iis ompe a e de e s wih kikbac ofpori of t f e a c ge t tt
ns t d alr t c ks
tons he e s nd har s ha he
de e sex r c e fom t ve y c t e st s i t . (
alr ta t d r he r usom r hey olcied PSOF a ! 2 , 9 .Thi wa d n t
t! 4 2 ) s s o e o
inc i z 'd e s t dr w i m or c t m e s a m o i ton t Re i r c ts as pr of
û entvie' ealr o a n
i
e us o r ,
tva i he ce ve ie
oof

faudulnti ent (#.a 1 .Ye a t s tme t Rec i ralopr t oughadmisons
r e nt . / t 8) t t he ame i , he eve s oves hr
si
t tDe e
ha f ndant di no havea c t e swho s
s d t
ny usom r
oughtt pu c em e a ;di noti r uceany
o r has t l d
ntod
c t r t t HW Enttes a di not pr de a s r i s f t bene i of t HW
usome s o he
ii ; nd d
ovi ny e vce or he
ft
he

Eniis (d. t 81 .Onte efcs ii h r t u d rtndwh t eHW Eniiswo l r wa d
t e, 1 a! )
t
h s a t,t s ad o n esa
yh
t e ud e r
t
a de e who di notconti t c t
alr
d
rbu e usomer t t s heme. The motva i be nd t pa e of
s o he c
i ton hi he ym nt

$ 6 3 5.9rmansa u e ov dpic o tepu ze Ac odigy s mma yj d me t nt s
5 4,3 5 e i n nrs le e e f h z l. c r n l, u r u g n o hi
c am i notwa r nt
li s
r a ed.

2. Se ton 3 0 a 4 :
c i 439,4( 42) Consr c i e Fr
tu tv aud
S
i tuci ' orSi i t'fa e sswhe t de t doe notr ceve $a r a ona y
consr tve' ûmplci' r ud xit
n he b or s
e i û e s bl

e u v ln v le i e c a e f r te ta se o o lg to a d t d b o ete :( wa
q i ae t au n x h ng o h rn fr r bi ai n n he e t r i r A) s
h
e ged or wa a
nga
s boutt enga i 'a lver ge ta a ton t t woul l ve is é e ni
o
ge n' e a d r ns c i ha
d ea t k mai ng
r

a s t'tunr ona y s l'ork( i e
s es' l eas bl mal' tB) ntnded t i ,orbeive orr a ona y s d ha
o ncur
le d e s bl houl ve

bele d t t(t woul i ur de sbeyond gt a lt t pa a t y be medue' Ann.Cal
ive ha il
d nc , bt
iq biiy o y s he ca
.'
.
Ci Code j 3 04( 2) l c rs t t i e is i at fa t dee nain of
v.
439. *( . n onta t o he ntnt sue n cual rud, he tnni to
wheher a ta f was exc ng f i ufi e c i r i i a l l que ton. l re
t
r nser
ha ed or ns fcint onsde aton s ega
si
n

Prje 99 F. 706,708 ( h Ci.19 ) TheRec i raguest tDee nt una wee
e an, 4 2d
9t r 93 .
eve r
ha fnda s' ns rd
8

RFAS e tbls t tt di note ha a hi ofva ue f t f r payme s f
sa ih ha hey d
xc nge nyt ng
l or he ou
nt
r HW
om
Cr di. Thus t Re ei rbeleve t tDe e nt a i a pur c uson s
e t
, he c ve
i s ha f nda s dm t
e oncl i omet ng RF' S
hi
A
,
c l ac e Ev i t swe e a f c ualquesi , t ct RFAS do notne s a iy s ppo t
amot hive, en f hi r a t
ton he ied
ce s rl u r

t saed pr ii The a isonss
he t t oposton.
dm s i how onl t tDe e nt di notdie ta c t e s
y ha f nda s d
r c ny usom r
t t HW Entte ,ta f ra c t e ' money, orperonn a s r i esf t HW Enttes
o he
iis r ns e ny usom rs
f
ny e v c or he
ii .

( 6 - a !f1 21 . Bu De e d n s ma silh v of rd c sd r t n e tma t te
DE 2 2 t ! 5- ) t fn a t y tl a e fee on ieai xe l o h
o
s he e Cr ialy,t M o i n aludest De e nt ta f roff
c m . yptc l he to l
o f nda s' r ns e
unds t t HW Enttest
o he
ii o
plc a or ofme a son t i o be l. (
a e n der
tl
he r wn ha f PSOF a ! 76) ha rltons pt sor rha
t
.W t eai hi hi de d

wih t t mpor ly o rappi ta f r ba t Def nda s i uncla . Buti a las ma s
t he e
al ve l ng r nse s ck o
e nt s
er
t t e t ke
pos i e t De e nt had ofe ed s ehi ofva ue M or over ne t oft optonsf
sbl hat f nda s
f r om t ng
l .
e , iher he i
or
c tuc i fa s s ond pr i esa ihed bec us t RFAS t ta t mptt elci t
onsr tve r ud' ec
ong s t bls
a e he
ha te
o i t hem
a i c l f Pe r t r nde an opi on on a pec sofHW Cr tsa f isoverwhih he i not
gan a l or ry o e r
ni
s t
edi' fa r
c
s

c mp tn t a we (.. t erlv r g d sau o a l y t rpa d b s. (d.a ! 5 ,5 )
o ee t o ns r i , h i e ea e tts r bit o e y e t) 1 t ! 3 6 .
e
i
Be a e t r r i diput d is ofm a t i lf c , s mmayj dg n a t t i cam i as
c us he e ema n s t s uts
t ra a t u
r u me t s o h s li s lo
d e
enid.

#. Un u t rc me
j s En ih nt
AtCaio nac mmo lw,h ee nso u j s e c me tae6 1 rc ito ab n f
lf r i o n a t e lme t f n u t mi h n r $ ) e ep f e eh
g
a d (ju j trtn in o teb nei a te e p n eo a t e . Bege v Ho De tUS
n 2 nus ee to f h e ft t h x e s f noh r' r r . me po A,
'
l . 741F. 1 1 ( t Ci.201 ( i Le todr v.Se Bank,77Ca.App.4t
nc,
3d 061, 070 9h r 4) quotng cr yer
oul
l
h

7 3 7 6 ( l CtAp 2 0 :, b o td o oh rgr n sb M ir sp Cop.v Ba e ,1 7 S
2 , 2 Ca. , p. 0 0 a r gae n te ou d y c o o r . k r 3 .
1 ( 7) Ther c ptofmone i c ti y abe ft Ho ve ,f t smer s a
702 201 .
e ei
y s eranl
nei. we r or he a eaons s
dic s d i c me ton wih t sa ut y cli ,i i notcl rwheherDe enda s r tnton of
s us e n or c i
t he t t or a ms t s
ea
t
f nt ' ee i

ti mo e i u j t Th rf r ,lc n o e trs mmay j d me to t u j s e c me t
h s n y s nus. e eo e a n t ne u r u g n n he n u t mi h n
cl m e t r
ai ihe .
9

C' Conc uson
.
l i

I may ve y we lbet c et tt Re ei r hi i e il t f
t
r l
he as ha he c ve s p s ntted o undshed by Def nda s
l
e nt .
Howe ,e n tki i o a countPe r seva i tc i sdu i dicove y, t Recei rhas not
ver ve a ng nt c
ry'
sve a tc rng s r he
ve
ade t y de l pe t r or t t poi whe e he c am sc be e tbls d asa mate of
quael ve o d he ec d o he nt r r l i an
sa ihe
tr
lw . I pa tc a ,Pe r sr a i hi t t HW Entte r mai s
a
n riulr r y' eltons p o he
iis e ns omewha ofa myser . H e
t
ty

a r nty ha a de e a e m e wih t e ii s Bu a or ng t t f t ct d by t
ppa e l d
alr gr e nt t he ntte .
t cc di o he acs ie
he
Rec i r he r cr t d no cusome s ofhi own a a tmesaced a c t e hi s l. N or i
eve , e uie
t r
s
nd t i
t
usom r m ef
s

t r as ye a e a ton f t s c a pum os of t $564,335. i tansers.
he e
t ny xplna i or he our e nd
e
he
59 n r f
Alhoug lhe ia e t r wa d Pe r s ltg i n c
t h
stt o e r ry' ii ato onduc , Ic r ofs tt e ta gr sons by
t a mot f e hes r ns es i

a r i g a u d s r ig s mmayj g n . I i h r b ORDERED a d ADJ
wad n n n e e vn u r ud me t t s e e y
n
UDGED t a
ht
Pli ifM ea eE.Dami sMotonf SummayJ me ( 62)i DENI
antf lni
an' i or
r udg nt DE
s
ED

.

Thsc s wilp o e d t aj r til (srq e td b Per )d rn te t - e til
i a e l r c e o u y ra5 a e u se y ry u ig h wo we k ra
pe i begi ng J y 24,201 a 9: a. . Caenda Calwilbe hel on J y 1 201 a 1 1
rod
nni ul
7 t 00 m
l r l l
d
ul 9, 7 t : 5
p. . Al Pa te m us a t nd i pe s
m
l ri s
t te n r on, The Cour wilpr ee de pie a Pa t s no
t l oc d s t ny ry' na tnda
te nce.
DONE AND ORDERED i Cha r i W e tP
n
mbe s n s
J y,201
ul
7.

Bea , Flrda t s/ da of
c
i , hi # y

'
O
D M .M 1 DLEBROOKS
UNI
TED STATES DI
STRI J
CT UDGE

Copi t Couns lofRe d;
es o:
e
cor
BilD. nyn o s
l Pe pr e
1 2 H a v tLn
1
r es
Pe e s ur I 475
t r b g,N
67

BilD.Pn pr s
l
nys o e
980 N ,M i hi n A ve
c ga
Suie 1
t 400
Chi go,I 60611
ca L

5Alho UFTA doe nots cfc ly a horz j y til,Calf a c t hol t tt
t ugh
s
pe i al ut ie ur ras iomi ours d ha he
saue d sn ts p re e rg t - j r til b ig o - at c e t c mmo lw camsf r
ttt oe o u e s d ih s u y ras en ne ta h d o o n a li o

fa entc veya t tpr daed t sa ut sena t e . W iden v Su ri Court 124 Cal
r udul on
nce ha e t he t t e'
cm nt s
,
pe or
,
.

App. h750,758( 1 Ct App.2004)
4t
Ca. .
.
10