Kane v. Stewart Tilghman Fox & Bianchi PA et al

Filing 22

ORDER Closing Case with Notice of Entry 8016(b) Signed by Judge K. Michael Moore on 1/18/2013. (rg1)

I THE UNI
N
TED STATES DI
STRI COURT
CT
FOR TH E SOUTH ERN DI
STRI OF FLO RI
CT
DA
Ca e N o.1 c 80750- M
s
2- vKM
Ca e N o.09- p- 838 EPK
s
a 01 Ca e N o.09- p- 839s
a 01
EPK

HARLEY N.KANE a
nd

C E JKAV ,
HAM S .
Appelan s
l t,

VS.

STEW ART TI
LGHM AN FOX & BI CHI P. ,
AN
, A.
W I AM C.HEARON ,P. .a
LLI
A , nd
TOD D S.STEW A RT,P. .
A,
Appele .
les
/
O RD ER

THI CAUSE i be or t Co t on a a a fo t Fi l J
S
s f e he ur
n ppe l r m he na udgme a
nt nd
M C A a dum Opi on,wli h we e e e e by t Ba pt y Cour on M a 1 201 1 Thi
n or n
ni
lc
r ntr d
he nknl c
t
y 0, 2.
s

Co r h sj rs ito o e t ea pe lpu s a tt 28U.. j 1 8a ( )a d Fe R. n r P.
u t a u id cin v r h p a ru n o
SC. 5 () 1 n d. Ba k .
8001 Fort r as sa e he ei t Bank pt y Cour' Fi lJ
.
he e ons tt d r n, he
nz c
ts na udgm e a M e or ndum
nt nd m a
Opi on a eafime
ni r fr d.

1Cha l Ka fld a s pa ae a aloft Fi J m e a M e or nd Opi on whi h
res ne ie
e r t ppe
he nal udg nt nd m a um
ni
c

wass eq ty c oldae wih t i t tmatr Se Cas No.1 CVubs uenl ons i td t he nsan te. e e
2- 80751( No.
ECF
1 .
0)

FACTUAL BACKGROUNDZ

HalyKa ea dCh re Ka e(o lciey,h ç p la t' aea tr y a dweete
re n n a ls n c le t l te ç eln s' r t ne s n r h
v
Ap
)
o
o l p rn r i t g n r l rn rhp o Ka e& Ka e(h ç rnes i ' .Ap elnswok d
ny a te s n he e e a pate s i f n
n te ç t rh p' p l t r e
pa
)
a
tg te wih asp rt g o p o lwy r (o lciey t eC P La es' t fl t o sn o
o eh r t e a ae r u f a e s c le tv l, h TI wy r' o ie h u a ds f
)
lws t i t St t ofFl i on be l ofm e ca pr de sa ns t Pr e sveI ur nc
a uis n he a e
orda
ha f
di l ovi r gai t he ogr s i ns a e

Co a is(pr g e sv ' Th PI La esb o g tv ro scamsu d ris rn e p l is
mp ne ç o rs ie). e P wy r r u h a iu li n e n u a c oi e
t
c
is e b Pr ge sv o be afo tercin s(he t P Cli ' A1 o t e Pl La es
su d y o r sie n h l f h i le t t t
PI ams). 1 f h P wy r

j ity r p ee td alo t e cin sf rte p r o e o b ign camso b h l o a ma y
on l e rs ne 1 f h le t o h u p s f rn ig li n e af f s n
c in s a pos i e. I or r t f rhe pr s tr Pr es i i o s tlm e ,t PI La r
le t s sbl n de o u t r e sle ogr sve nt e te nt he P wye s

d cd d t as fl lws t f rb d fi rf s lt s tl cams(h ç d F i Cli ' I
e i e o lo ie a ui o a at eu a o et li te f
s
h
e
Ba at ams). n
h
or r t pur ue t Ba Faih Cl ms o beha f of t r ci nt ,t Pl La r e ge
de o
s he d t ai
n
l
hei le s he P Mle s nga d
Appele t s r e a c ms l The Pl Lawye s a Appelee entr d i o a e
les o e v s ot e .
P
r nd
l s e e nt n ngag nt
eme
a e m e f Appe lest fl Bad Fat Cl msf t clen sr pr e ed by t PI La r .
gr e nt or
le o ie
ih ai or he i t e es nt
he P wye s
Alhough Appe lesne rsg d e
t
le
ve ine ngage nta e nt wih aloft clen s r pr s nt d by
me gr eme s t l
he i t e e e e
t PI Lawy r ,Appe les e f c i y r pr e e t i e e t of e r clenta s ri Pl
he P
es
le fe tvel e es nt d he nt r ss
ve y i
s e tng P
Cli be a e t e nt lgoa wa t brng Ba Fa t Cli son be l ofa many c int a
a ms c us he ve ua
l so i
d ih am
ha f s
le s s
2The f t ba kg ound i brel s ma i e f r e e s pur e . Thi Co tfnds t t
acual c r
s ity um rz d or ef r nce
pos s
s ur i
ha
t Ba nmt y Cour' f t fndi a e wel- uppore by c
he nk c
ts acual i ngs r
ls
td
ompeen evi nce a a e not
t t de
nd r
cea l e r ous Ac di y,t s Cour adopt t Ba upt Cour' f t fndi a
l ry rone . cor ngl hi
t
s he nkr cy
ts acual i ngs nd
i or a e t m he en by r f r nc Alhough Appe lnt ca m t tml r oft s f c ua
nc por t s he
ri
e e e e. t
la s li ha me ous he e a t l
fndi a eerone , he onl s por t sc am wih t i own s l-e vi t si
i ngs r r ous t y y up t hi l i t her
e fs r ng e tmony, c
whih

t Bn pc Cour f mdt beno ce bl t oughoutt he rng. Se Opi on,a 7(f'e
he nknlty
t ot o
t rdi e hr
he ai
e ni t çf
-h
(
Appela sltsi y ont sba i is wasno bele bl ') seas Opi on,a 11 1 1
lnt' etmon
hi sc sue
t iva e. ; e lo ni t , 5, 6,
'
1 20. The Ba
7,
nknl cy Co t how e r f t d t t tm o of Appe l es t be cr di e Se
pt
ur ,
ve , o m he es i ny
le o
e bl . e

Opi on,a 9($ .Stwatst tmonya tilwas a altmes crdi e. Thi Cour fndsno
ni t ç
Mr e r' esi
t ra , t l i , e bl '
). s
ti
e r i t Ba upty Cour' f t lfndi orc e biiy de e na i . SeeUnie St t s
ror n he nkr c
ts acua i ngs r di lt t nni tons
td ae

v.Pees 403 F. 1
tr,
3d 263,1 ( 1h Ci.2005)(W sesi wine sce biiy i uniuel t
270 1 t r
t s sng t s rdi lt s q y he
f to oft tiroff c ,a i i o t ta c tofa al may nota s d no e avo
unci n he re
a t nd t s ne ha our
ppe s
nd houl t nde r

t rplc t basd on t c dpa rr or beor i.) s e as Yona v.Sibe sei No.11
o e iae e
he ol pe ec d f e t' ; e lo
'
di l rt n,
CV- 0901 201 W L 718 a *2 ( D. a. a . 201 .
8 , 2
785, t -3 S. Fl M r 6, 2)
2

pos i e. Unde a c i nc f e a r nge e ,Appel e woul r e ve sxt pe c nt ofa 1
sbl
r ontnge y e ra m nt
le s
d ec i i y r e
1
at ne s f e r c ve fom t Ba Fat Cli . The ove whel i e de de
tor y' e s e ei d r he d ih a ms
r m ng vi nce monsr e
tats

t tt PI Cli s a Bad Fat Cl ms we e i xtiabl i t rwi d a no c i r d
ha he P am nd
ih ai
r ne rc y n e t ne nd t onsde e
s part aci nsby a pa t .3 Ap le ,howe r we e t onl lwye sadd e sng t Ba
e ae to
ny ry
pel es
ve , r he y a r
r s i he d

Fat Cli sort e ci n swho hadpo e ilbad f ih cai s
ih am
hos le t
t nta
at l m .
Appel e s ce s ul ltga e t Ba Fat Cl i s a e re c ntol ove t r
le s uc s f ly ii t d he d ih am nd xe t d o r
r hei

neg ito a s tlmen .I J nua y 2004,Pr e svea Appe lesen e e i one tai
ota in nd e te t n a r
ogr s i nd
le
t r d nt go itons
t s tl t Ba Faih Cl i sa a pot ta ba f ih c am shel by o he cle swih PI
o e te he d t am nd ny en i l d at l i
d
t r int t P
Cli s Folowi Appel e 'ofe oft nt m ilon dola st s tl a 1oft ba f t cai
am . l ng
le s f r we y li
lr o e te 1 he d aih l ms
and a c e - f roft m ilon dola sby Pr r s i ,a f ma me a i wass duld f
ountrofe
wo li
lr
og e sve or l diton
che e or
Aprl2004 t s tl a lpo e ilcli s I or r t a d a c lc of it r tbewe n t
i
o e te 1 t nta am . n de o voi
ontit n e es t e he
cle sa c
int nd ouns l Appel s s sed t tt Ba Fa t Cl ms be a es e be or t PI
e,
lee ugge t ha he d ih ai
ddr s d f e he P
Cl i s we e a es e Appe les we e conc r d t t a a
am
r ddr s d.
le
r
e ne ha ny ppori
tonmen i a a r gae
t n n gg e t
s tlmentbe we t PI Cl m s a Bad Faih Cl ms woul c eae a c lc of i e e t
e te
t en he P ai nd
t ai
d r t
onfit ntr s

be we t cle s a c
t en he int nd ouns l Appelee we e a e i be aus ni t pe ce ofa
e.
l s r ppr hensve c e ney r nt ny
r c r oft PI Cl i swoul go t c
e ove y he P am
d
o ouns l whie onl t pe ce woul go t t cle s
e, l y en r nt
d
o he int .

W he e i t Ba Faih Cl i s t ci nt woul r c ve sxt per e of any po e i l
r as n he d t am , he le s
d e ei i y c nt
t nta
r c r and c elwo d r cevet r m ander
e ove y
ouns
ul e i he e i .
Pror t t me ai n,Appe les a t Pl La er m e t dic s t c am s a
i o ht dito
le nd he P wy s t o s us he l i nd
ne ta i sr t e . Appe leswer a horze t notonl ne i t and s tl alt Ba
go iton taegis
le
e ut i d o
y gotae
e te l he d

3 Thi Cour lke t Banknl c Cour , rj csAp eln s cam
s
t i he
pt y
t ee t p l t' li
a

ta t et c u e o a t n
h t h wo a s s f ci
o
wee spaae Se Opi on,a 7 (çhee de e a te a tils ,ove whemi y,t t
r e rt. e ni t tr vi nc dmitd t ra hows r l ngl ha
t e ( p le s,te ( peln s,t e oh r P P La es a Pr g e sv te td t e PI
h Ap ele j h Ap la t) h t e I wy r, nd o rs ie rae h P
( ams a Ba Fat g ai la i xtia yi erwi d.
Cli ) nd d ih cl ms s ne rc bl nt t ne '
).

Fat Cli s b a s t P1 Cl i s Asar ul,t P1 La r a ee i wrtng t i r s
ih am , ut lo he P am .
es t he P wye s gr d n ii o nc ea e
Appel e c i e f et s ve y-i pe ce ofa r ove yoft Bad Faih Cl i s4
le s ontng nt e o e nt fve r nt ny ec r
he
t am .

At t mediton,Pr r s i m a an ofe t s tl t Bad Fat Cl i s f r $3.
he
ai
og e sve de
f r o e te he
ih am o
5
m ilon whie Appele made a c e ofe of $1 5 milon.The me a i r s t i a
li
l
les
ount r f r
8. li
diton e uled n n
i pa s a d A ppel esr pore t sr ul t t PI La r . Afe t m e ai n, Appe l e
le e td hi es t o he P wye ss tr he di to
m s e, n
le s
c i d t s c s uly plr ue t Ba Fat Cli i sa e c ta a hived num e ous
ontnue o uc es f l zs he d ih a ms n tt our nd c e
r
m ae a r er i a i tPr e sve.
t dal dve s ulngs gans ogr s i
W hie Appele we e a tvel ptrui t Ba Faih Cl i s i sae c t t PI
l
les r c i y ls ng he d t am n tt our, he P
La r- wihoutno iyi Appe les m e wih Pr e sve and s tld a lcli s i l ng
wye s
t
tf ng
le - t t ogr s i
e te l am , ncudi
a 1PI Cli ,Ba Fat Cli s a a pot nta ba f t cai shed by cle s wih Pl
1 P a ms d ih am , nd ny e i l d aih l m
l
int t P

Cli (h ç tlme f). Th S tlme t wrte i a d c me tc le t e Me rn u o
ams te l t n
se e
e e t n , itn n o u n ald h mo a d m f
e
Unde sa ng,wa f a oxi t l $1 5 m ilon,of whi h m o e t n $1 9 m ilon wa
rt ndi
s or ppr ma ey 4. li
c
r ha 0. li
s
a l a e t a t ne s f e a cossf t PI Cl i s No s cii amot oft ag egae
loc t d o tor y' e s nd t or he P am .
pe tc
mt he gr t

stlme twa alc t dt a y b df i c ams ThePI La est np e rd aj itlte t
ete n s l ae o n a at li .
o
h
P wy r he rpae o n etr o
t c int,whih omit num e ousma e i de a l,i or rt obt i t ne s a y r ea es
he le s
c
ted
r
t ral t is n de o an he ce s r el s .
Appe le di notln n oft Se teme un i a t i wase c e The PI Lawy r
le s d
er
he tl nt tl fer t
xe ut d.
P
es
r f s t pr det doc e sr aed t t Se te ntore n t t r soft Sete ntt
e u ed o ovi he um nt elt o he tlme
ve he e m
he tlme o
Appele . Onl afe a sae cou tis d a or r c
les
y tr t t
r s ue n de ompelng t doc e s di Appe les
li he um nt d
le
ln noft t r soft Sete t
er
he e m
he tlmen .

4Thus t Pl La r woul onl r ei 1 oft t a r c y f a oft Ba Faih
he P wye s
d y ec ve 0%
he ot l e over or ny he d t
5
Cli s whie t y woul r c ve 90% of a r cove y of t PI Cl m s The Banknl c
am , l he
d e ei
ny e
r
he P ai .
pt y
Co tf m d t s f c o t be m a e i li is dec s on be aus G n a s tl m e ofal oft c a m s
ur ot hi a t r o
t ra n t
ii
c et
i
e te nt
1 he l i
agans Pr r s i t al a i ofr cove y be we n Pl cai sand ba f ih cai swo d
i t og e sve, he loc ton
e
r t e P lm
d at l m
ul
ha a m a ked i pa ton t a ountr e ve by t Pl La y r . Opi on,a 1
ve
r
m c
he m
ec i d
he P w e s'
' ni t 0.

5Th Ba k mty Co r rj ce Ap elns cam ta te b le e t eme ito wa afi r
e n n c u t ee td p l t' li h t h y eiv d h d ain s al e
a
u
a t tAppel swe eno l rgoi t neg it wih Pr e sve. SeeOpi on, t1 1
nd ha
lee r
onge
ng o ota e t ogr s i
ni a 0-1 .
4

The Pl La r a Pr e sve s e nty amt
P wye s nd ogr s i ubs que l
nded t Se te e i a docl e
he tlm nt n
lm nt
c le t Am e d M e a
a ld he
nde
mor ndum ofUnde sa ng, c wa a s exe ut d wihou notf ng
r tndi whih s lo c e t t iyi

Appe le Thi docl nta bir rl alocae $175 milon f t Ba Fat Cli sou oft
le s. s tme r ta iy l t d .
li or he d ih am t he

a g e ae s tlme tn t o a p o i tl $1 . mi inf The v s mao i o cins
g r g t et n momt f p r x maey 45 l o .
e
l
a t j rt f le t,
y
ho ve , sil di not ha a a
we r tl d
ve n ppori
tonmen of t agg ega e s tl men aloc t d t t r
t
he
r t e te t l a e o hei
pot nta ba f t ca ms e n t
e i l d aih li ve hough i r quied a r e e ofs c am s7 The Pl La r
te r
elas
uch l i .
P wye s

t n notfe t ci nt a
he
ii d he le s boutt c
he onfit be wee t PI La er a Appel es o
c t n he P wy s nd
le ver
a t ne s f es t r naed t Appelee r pr s ntton,a r d i t Ba Fat Cl i s a
tor y' e , e mi t he
l s' e e e ai
ppea e n he d ih am s
c
ouns lf t ci t ,a vol a iy dim is t Bad Fa t Cl i s
e or he len s nd unt rl s s ed he
ih am .
Folowi t e e nt ,
l ng hes ve s Appe lesfl a lws tas e tng va i c am sa i tt P1
le ied a ui s ri
rous l i gans he P

La esi Fo i asaec u t(h ç tt Co r Acin'.Afe atn we k b n htilt esae
wy r n lrd tt o r t e t ae u t to '
s
) tr e - e e c ra, h tt

c u t e tr d a fn lj g n i fv r o Ap ele a d a ans Ap eln s j it a d
o r ne e
i a ud me t n a o f p l s n g i t p l t, onl n
e
a
y
s v rly i te a t o $ milo pu itr s o t ecam o q a t me uta d mjus
e eal , n h momt f 2 l n ls ne et n h li f u num r i n
i
t
e rc me t(h ç tt Co r J g n ).S eS aeCo r J d me t( No 2 3 , t1 )
n ih n te ç ae u t ud me f e tt u t u g n ECF . - 0 a 0 .
s
On Nove r 1 2008, e c Appelan a t Pa t s p fld vol a y pe ii ns
mbe 7,
ah
l t nd he rnerhi ie
unt r tto

t e Ch pe 1 o t eU. Ba k p c Co e(h ç pe 1 Pr c e if'. Afe ah a ig
md r a tr 1 f h S. n nlty d te % tr 1 o e dn ) tr e rn
cha
on Appel s m o i t dim ison M a c 20,2009,t Banknm ty Cour or ly r e t tal
lee ' ton o s s
rh
he
c
t al uld ha l
t e pe ii we e dim is d be us t wer fld i ba f ih. Ho e r t Ba
hr e ttons r s s e ca e hey
e ie n d at
w ve , he nknp t
cy
Cour or r d t tt t f di da e f dimis lwo d be M a c 30,2009. I t i e i ,t
t de e ha he fe ve t or s s a ul
rh
n he nt rm he

Pa t r hi wa a horze t onl pa f goo a s r i si t or nar c s ofbusne s
rne s p s ut i d o y y or ds nd e vce n he di y our e
i s

6 The Ba nz c Co tf und t tt Pa te n e
nk pt y ur o
ha he ri s m nded t Se te e a a wea a tmptt
he tlm nt s
k te
o
m a i a pe r l s i rm i tng snc Appelee now ha a rght t s
ke t p a e s nc i na i
i e
l s
d
i
o ome f m of
or
c pe a i Se Opi on,a 1
om ns ton. e ni t 5.
7l t r tngl , bot s tlm e doc nt c ane pr sonswhe ei t PI La y sa e d
n e es i y
h e te nt ume s ont i d ovii
r n he P w er gr e
t i m niy Pr es i agans anycli f at ne sf esas e t by Appel e .
o nde f ogr sve i t
a ms or tor y' e
s red
le s
5

a no diti i wt e t be ma t Appela t l ls a horze by t Ba
nd
srbutons r o
de o
l n s m e s ut i d
he nknpt y Cou t
c
r.

S eMa . 0 2 0 Hrg Tr, t20( No 2- 7 a 2 ) Th s r ln swee ltrp tf rh i
e r 2 , 0 9 ' .a
ECF . 1 , t 8 . e e ui g r ae u o t n
wrte o d r a de trd o tes med t. S eOr e Dimisn Ca e( No 2 1 , t5 )
itn r e s n n ee n h a ae e d r s si g s ECF . - 7 a 4 ;
Or e Retitn Ditiui n ( No. - 7 a 5 ) t o g n ih rAp la twa p e e t
d r srcig srb to s ECF
2 1 , t 2 .Alh u h et e peln s r sn
d ng t he rng,Ha ly Kaneac
mi he a i
re
knowldged t the s
e
ha
poket hi ba pt c
o s nknl cy ouns la trt
e fe he
hea i a s ta e a
rng nd ough dvi e boutt Pa t r hi s a lt t m a c ra n pa m e s On M a c
he rne s p' biiy o ke e ti y nt .
rh

24,2009,Ha ly Ka c us t Pm ne s p t pa a oxi a ey $30, i r a e t t txe
re ne a ed he
r hi o y ppr m t l
000 n e l sae a s
t twe ehi pe s
ha r s ronaloblgai n.
i to
On M a c 30,2009,e c Appela a t Pa t s p fl pe ii underCha er7 of
rh
ah
lnt nd he rnerhi ied ttons
pt
t U. Ba u cy Code. On J y 31 2009,Appe lesfld a r a y c
he S. nkr pt
ul ,
le ie dve s r ompl n sa i tbot
ait ga ns h

Ap eln s wh c a s re cams fr d na o dic ag t e S cin 7 7 a( ) t u tI;
p l t ih s etd li o e il f s h r e md r e to 2 ()2 co n )
a
d n a o d shag u d r Se to 7 7 a () t u t 1) d nil o ds h r e u d r S cin
e il f ic r e n e cin 2 ()5 co n 1; e a f ic a g n e e to
7 7 a() t u t11;e c pin fo ds h r e ofte S ae Co r J d me t t e S cin
2 ()7 co n 1) x t t r m ic a g
o
h tt u t u g n md r e t
o
5 3 a()( u tI ;a d e e to fo ds h r eo te S eCo r J dg n t e Se to
2 ()4 Co n V) n xc pi n r m ic ag f h ut u t u me t md r cin
5 3 a( )t u t .S eec, v ra yCo lit ECF No 2 3 , t1.
2 ()6 co n V) e ..Ad e sr mpan (
. -0 a )
A he rng washel on t i tntma tron Nove r7,9,a 1 2011a J nua y 20,
ai
d he nsa
te
mbe
nd 0,
nd a r

2 , n 2 , 01 8 Th Ba k c Co r s b e u n l is e aF n lJ d me t( No 1 a
3 a d 4 2 2. e n npty u t u s q e t su d i a u g n ECF . , t
y
5 a d Me rn l Opiin ( No.1 a 7 (o lciey t eS i o ' . Th Bn k p c
)n
mo a dl
m no ECF
, t ) c le tv l, h t nin' e n nlty
op
)

Co r e trd j dg n i fvo o Ap eln s fre r c u ti te a v ray p o e dng ,
u t n ee u me t n a r f p l t o vey o n n h d es r r c e i s
a
e c p ta j d me t se tr di fv rof p le sa da an t 1 Ha lyKa o Co n II
x e t h t u g n wa nee n a o Ap ele n g is ( ) re ne n u t I
f de a of dic r unde Se ton 727( ( ;a ( bot Appela s on Cot V fr
or nil
s hage
r ci
a)7) nd 2) h
lnt
mt o

e e to fo dshag f rteS aeCo r J g n u e Se to 5 3 a( )
xc pin r m ic r e o h tt u t ud me t nd r cin 2 ()6 .
8 w ih t c e of t Pa te , t Ba pt y Cour hed a sngl he rng be a e t
t he ons nt
he ri s he nknl c
t l
i e ai
c us he
a r a y pr ee ngswe e i ntc a bas d ont s m et ryi f c s
dve s r oc di
r de ial nd e
he a mde l ng a t .
6

Appela stm ey fld a Notc ofAppea oft Opi o r ga di Col Ila V .9
lnt i l ie
ie
l he ni n e r ng mt l nd
Appel n snow a alt Ba u c Cour' Opi on a pr s ntt f l ng is s
la t
ppe he nkr pty
ts ni nd e e he olowi sue :

( )W h te te Ba k pc Co r e rd i d tr nn t a Ap l e ' d b wa
1 eh r h
n nlty u t re n eemiig h t pel s e t s
e
e c p e fo dic ag u d r 1 U. C.j 5 3 a ( ) f r wilu a d maiius
x e td r m s h r e n e 1 S.
2 ()6 o lf l n
lo
c
ij r ?
nu y
( )W h te t e Ba k pc Co r er d i a py n c lae a e tp e wi rg r t
2 eh r h n nlty u t re n p li g oltrl so p l t e ad o
h
f cualfndi i t St t Cour Ac i a Cha e 11Pr ee ng?
at
ngs n he a e
t ton nd
pt r
oc di

( )W h te t eBa k pc Co r erd i barn HalyKa ' dic ag p ru n t
3 eh r h n nlty u t re n rig re nes s h r e u s a t o
1 U. C.
1 S.

7 7 a( ) b c us Ha ly Ka e vo ae S cins 7 7 a( ) a d
2 ()7 e a e re
n iltd e to 2 ()2 n

727()6 ?
a()
D I U SSI N
SC
O

M
A

St nda d ofRe ew
a r
vi

Sf e dititc tmus ac e t ba u cy c r ' f cualfndi t es t y a e
d' src our
-h
t c pt he nkr pt ou ts a t i ngs ml s he r
cla l eroneo , t r vi ws a ba u c c ts l al c usons de novo.' l r
e ry r us but e e
nkr pt y our' eg oncl i
'' n e

En ln e, 9 F.d 1 2 , 1 3 ( 1h Ci. 1 9 ) ç d r d n v rv e () Co r
ga d r 5 3 0 8 0 0 1 t r 9 6 . ç e e o o e iw, a u t
un
i pe ntyexn ne t l w a dr wsisown concusonsa tra yi t lw t t f c s
nde nde l
mi s he a nd a t
l i
fe ppl ng he a o he a t
oft ca e,wihoutr ga d t de sonsmadeby t Ba pt y Cour. I r Br
he s
t
e r o cii
he nknl c
t' n e own, 6:
'
No. 08-

CV- 51 - ,1 DAB,2 0 W L 5 5 0 ,a * ( . F a No 1 ,2 0 )(iig I r Pie
1 7 ORI- 8
08
0 0 81 t 2 M D. l . v. 9 0 8 ctn n e p r
Aicaf Cor ,244F. 1 1 ( t Ci.2001) TheBa
rr t p.
3d 289, 295 11h r
).
nknmty Cour' fndi offc,
c
ts i ngs a t
whehe ba e on or lordoc nt r e de e,s l no be s ta i unl s clary e r ous
t r sd
a
ume a y vi nc ha l t e sde e s e l rone ,

a d d erg r s alb gv n t t o p ru iyo t eb n nlty c u tt j g t ece i ly
n u e ad h l e ie o he p o tnt f h n k p c o r o ud e h rdbit
i

o win se . FE R.BA R. 8 3 Th fn ig o a b n nltyj d e ae a c r e te
f t e s s D.
NK P. 01 . e i dn s f n k pc u g r c o d d h
9 A Ppele do nota ala a
l es
ppe ny dver e r lngs by t Bnnkr pt y Cour . Se Appe l e Br,a 2
s ui
he
u c
t e
le s . t
n.
1.
7

s meweg ta t efndn so a dsrc j g u d rFe R. v P.5 . A fn ig i i la l
a
ih s h i ig f itit ud e n e d. Ci . 2
i dn s ç e ry
c
e r ous'whe at
rone '
n lhough t e i evi nce t s
her s de
o uppor i,t r vi wi c tupon exa ni
t t he e e ng our
mi ng
t e ie e de e i lf wih t defnie and f11 c c i t t a m it ke ha be
he ntr vi nc s e t t he i t
114 onviton ha
sa
s en

c
ommit Unie Sttsv.U. Gypsl Co. 333U. 364,395 ( 948) I t l rco ts
ted. td ae
S. lm ,
S.
1 . f he owe ur'
a s s ntoft e de i pl usbl i lgh oft r or vi we i isentr t t r vi wi
s es me
he vi nce s a i e n i t he ec d e d n t iey, he e e ng
c tma no r ve s i e n t
our y t e r e t ve hough c nc d t tha i be n sti a t ti of f c ,i
onvi e ha d t e itng s he rer a t t
wo d ha weihe t e de e dif r l Ande s v.Be s r Ciy,470 U. 5 573ul ve g d he vi nc fe enty.
r on
s eme t
S. 64,

5 4 ( 9 5 . W h r t r ae t p r si e v e o t e i e c ,te fctn e ' c oc
7 18)
ee hee r wo emisbl iws f he v d n e h a t d rs h ie
i
bewe n t m ca
t e he
nnotbe ceal er ous J , M i quesi of lw a fc ar as
l ry rone . #. xed
tons a nd a t e lo

rve dd n v I r Le tk Itllc, 46F d Ap x43 43 ( 1h Ci. 0 9 .
e iwe e o o. n e ne n '.n .3 e . p' 0, 3 1 t r 2 0 )
K

TheBank c Cour' Deer nai t tAppeles De wasExce edfom
nmty
ts t mi ton ha
le ' bt
pt r
Dic
s hmxeUnde 11U. C.i 5 ( ( )f rW ilula M alci I ur
r
S.
23 a)6 o lf nd
i ous ni v

t Cha e 7 de ori ge r l entte t adic r ofa1de st ta os pro t t
t
A
pt r
bt s ne aly ild o
s ha ge l bt ha r e i r o he

fln o teb n nlty p tto ' I r M ic el 6 3F.d 1 9 1 2 ( 1h Ci. 01 )(iig
iig f h n k p c ei n. n e th l, 3 3 31 , 3 6 1 t r 2 1 ctn
i '
11 U. C.j 7 ( ) tlowe r t s ûr h sar'polc i onl a ia e t t ç tb
S.
27b). dl ve , hi fes t t iy s y valbl o he hones ut

t o tn t de t r'' l ( u tn l r Frt,2 4 F.d 1 23 1 2 ( 1h Ci.2 01) E
mfru ae bo .' d. q o ig n e ez 4 3 3 , 3 6 1 t r 0 ). G
TO
e ur t tonl t hones butunf t t de or r eve t be i ofdic ge Congr s
ns e ha
y he
t
oruna e bt s ec i he neft
s har ,
es

e a tds v rle c pi n t j7 7b ' g n rlr l o ds h r e' Lu S cin 5 c nan a
n ce e ea x e to s o 2 ()s e e a ue f ic ag . d e to 23 o ti s
'.
s
ls of s h e pto t t wil ba a dic ge;howe r çseci n 5 m us be na r wl
it
uc xce i ns ha l r
s har
ve , t to 23
t
ro y

c t ed,a t c ediorha t bur n ofpr ng by a pr ponder nc oft evi ncet ta
onsnz nd he r t
s he de
ovi
e
a e he de
ha n

e c p in t d shag a p is'I r Cl nng a 4 2 BR 4 4, 47 ( n r N. Al.2 2
x e to o ic r e p le . n e l i h m, 8
'
n
4 4 Ba k . D. a 01 )
( tngI r Buloc 670F.d 11 11 4 ( t Ci.201 ;I r Grfkh,206 F. 1 9,1 96
cii n e l k,
3 60, 6 11h r 2) n e it
3d 38 3
( t Ci.2000).
11h r
)

8

A d b i n n ic t bl p ru n t 1 U. C.j5 3 a( )i i i ad b f raw11
e t s o d shrg a e u s a t o 1 S.
2 ()6 f t s e t o
1
11

a d maiiusij r b t ed bo t a oh re tt o isp o ry. l r S n r , 1B. 8 4,
n lco nu y y h e tr o n tt ni r t rpe t n e a ty 48 R. 2
y
8 - 9 ( n r N. Ga 2 2 (iigKa a a v. ie , 2 U. 5 , ( 9 8 n u ,
28 2 Bn k . D. . 01 ) ctn wa uh u Geg r 5 3 S. 7 61 1 9 :. s a

p ry o jcig t a d b o ' ds h r e mu ts o t tt e d b ao e fo a ij r t twa
a t b e tn o e trs ic ag s h w ha h e t r s r m n n u y ha s
bo h wilula ma ii us Seel r Hol , . 11APt lf nd lc o .
n e mes No - 00391
TOM ,201 W L 2359909,a *3
2
t

( n r N. Al.J n 21 2 2 ( i to o te ) The U. Co r o Ap e l fr t
Ba k . D. a u e , 01 ) ct ins mitd .
a
S. u t f p as o he

Elv nhCic i h src n l sae ta, o awilu ij r ,
e e t rut a e e ty ttd h t f r lf lnu y
pr of t lf l s 'r quies ç s
oof wilu ne s e r a howi ofa i en i na orde i r t a t
ng
n nt to l
lbe ae c ,
whih i notdone m e ey i r c e sdir r oft rg s ofanot r 'l r
c s
r l n e kl s sega d he i ht
he . n e

W al r 48 F. 11 ,11 ( 1h Ci.1 )( i I r l r 883 F.
ke,
3d 61 63 1 t r 995 quotng n e kne,
2d
9 6 9 ( 1h Ci.1 8 :.tA) d b o i r s nsb e f ra 1 1 1 ij r
8 , 91 1 t z 9 9 @ e t r s e po il o w11 ' nu y
1

wh nh o sec mmisa itnin lattegrp s o whc i t cus
e e r h o t n ne to a c h t o e f ih s o a e
ij r o wh c i s bsa tal c ran t c u e ll r . I a 1 6 ;s eas
nu y r ih s u tnil eti o a s n u y' d. t 1 5 e lo
y
Ka uha v.Ge g r 523 U. 57,61- 11 S. .97 1 L. 2d 90
waa u
ie ,
S.
-62, 8 Ct 4, 40 Ed.

(9 8 (odngta j5 ()6 rq ie teatrt itn t ijry n tus
1 9 ) h li h t 23a() e urs h co o ne d he nt o j t
tea tta la st teij r ) Re kls l o n gi e tyifitdll re ae
h c h t e d o h nu y . c e sy r e lg nl n lce nu is r
n te c p e fo ds h r e u d rj 5 3 a ( ) Ka ala 5 3 U. a 6 ,
o x e td r m ic a g n e 2 ( )6 . wa t u, 2 S. t 4
h
11 S. .
8 Ct 974.

M a fed v.J n i s (n r J n ig ) 6 0 F.d 1 2 ,1 3 ( 1h Ci.2 2 (o dn t a a
xil
e nng I e e nn s, 7 3 3 9 3 4 1 t r 01 ) h l ig h t

fa d ln ta se o p o e t b a c -o s iao c n t e a w1 11a d maiiu ij r
ru ue t rn fr f r p ry y o c n prt r o si d
mt
1 n l o s nu y
1
c
u d rS cin 5 ()6 b c u eted b o ta serd p o ry wi o t u tc u ei a atmp
n e e to 23a () e a s h e t r rn fre rpe t t u j s a s n n te t
h
t plceibe
o a t yondt ra oface t )
he e ch
rdior.
Fo co uc t be malc ous co t t pi ly r uieco uc t ti çç ong u a
r nd t o
ii , urs y cal eq r nd t ha s çwr f l nd

wih u j s c us o e e svee e i t ea t eo p ro a h te , pt o ilwil' 1
t o t u t a e r xc si v n n h bsnc f e s n l ar d s ie r l- l.' d.
'
(uotngI r W ake,48F. a 11 .Thus çç s ngofs ii i e t hn m a t ri
q i ne l r
3d t 64)
, t howi
a
pecfc ntnt o r nohe s

n t e e sr ''no d rt e tbihmaieu d rS cin 5 3 a () I ( u tngI r ln r
o n c sa y 'i r e o sa ls lc n e e to 2 ( )6 . d. q oi n e k e ,
883F. a 991.
2d t )

9

TheBa pt Cour f md t tt Stt Co tJ
nknl cy
t ot ha he ae ur udgm e wase e e fo dic r
nt
xc pt d r m s ha ge

p u n t S din 5 3 a( )b c us Ap l e h dme t erb e o p o fr g r i w1 11
ms a t o e o 2 ()6 e a e pel s a t h i md n f r o e adng 1
e
1
ni
s
t e
t he
c
'
a d maiiu ij r . See Opi on,at55-62. Thi Cour agr eswih t Banknmty Courts
n l o s nu y
c
de e m i ton.1
t r na i 0

Fis,t ove hel i evi nc de
rt he
m m ng de e monsr t s t t Appel nt ' a tons we e wilu
ta e ha
la s c i
r lf l

be a s t e itn in l c mmitd a t wiht ep r o eo ic e sngt erf e a t ij r
c u e h y n e to al o te cs t h u p s f n r a i h i e s nd o nu e
y
Appel e . 1 Thi ca be de o tae by t PI La r s r ty ne itng a s tlng al
le s l s n
m nsr t d
he P wye s ec e l gota i nd e ti l
cli swiho notf ng t Appe les d pie t i aci i ve e i t ca ef ove t
am
t ut iyi he
le , es t he r tve nvol m nt n he s or r wo

y a s Se Opno a 1 ($ ( p le s) a s n e a te s tlme tme t a d i te
e r. e iin, t 3 E
The Ap ele ' b e c t h et n ei n n h
e
ng
s tlme tn g tainswa c n p c o s Th ( p l n s itn e t e cu e te .) Alo
et n e oit
e
o
s o s iu u . e Ap el t) n e d d o x ld h m ' . s ,
a
'
t PI La e s i e i l sr c ur d t Se te tt m a m i t r own a tr y' f e
he P wy r ntntonaly tu t e he tlmen o xi ze hei
to ne s e s

1 A ppe lnt c
0
la s ommi e a ge r ly a s red muli e a glm e st oughoutt rBre a
ngld nd ne al s e t
tpl r l nt hr
hei if nd
Re y. Alhough t sCour ha atempt t a es e r a glme pr e e by Appelan s
pl
t
hi
t s t ed o ddr s ve y r l nt es nt d
l t,
t s Co tfnds t t Appe lnt waved any a gume s on a alt tt y ge r ly as e t
hi ur i
ha
la s i
r
nt
ppe ha he ne al s red
wihoutpr di s tntvea g e o t m e is Se Farow v.W e t 320 F.3d 1
t
ovi ng ubsa i r um nt n he rt . e r
s,
235,1
242

n 1 ( 1h Ci. 0 3 (tt ta a a peln wav sa is ef rwhc h sb ifma e o l a
.0 1 t r 2 0 ) sai h t n p la t ie n su o ih i re k s ny
ng
ç a sngrf rnc 'a doesnota gu t meis.
s si e ee e' nd
r e he rt)
1 Thi Cour ag ee wih t Ba u c Co tt tt wilulpr c d as be e t bls
s
t r s t he nkr pt y ur ha he lf ong oul lo
sa ihed

be a e Ap eln s a to we e s b tnily c ran t c u e ij r t Ap ele . Se
c us p l t' cins r u sa tal e ti o a s nu y o p le s e
a
Opn o , t6 - (Ev n i te ( pele )h dn tp o e b ap e n ea c o tee d n e
ii n a 0 61 t e f h Ap le s a o r v n y rpo d rn e f h vie c
t
t a te( p la t)a tal itn e t ijl te E p le s, h e ie c i o e wh l n l
h t h Ap eln s cu l ne d d o nt e h Ap ele ) t e vd n e s v r emigy
y
r
t a te ( p la t)a td itninal i n g tai ,sr cu ig a d d c me tn te S ce
h t h Ap eln s ce n e to l n e oitng tu t rn , n o u n ig h e rt
y
S tlme t f ri ( pele )o to t eBa Fat ( ams, n i lme tn te stlme t
et n, o cng Ap l s u f h d ih Cli ) a d mp e nig h et n
e
e
e
wiht ecin s a dta t yk w, thetmeo e c s c a t ta ( p le s wo l c ran y
t h le t, n h t he ne a t i f a h u h c,h t Ap ele ) ud e til
beh r db r d cin o ei n to o lg lfe rg tul p y bet t ( p le s.) Ths
ame y e u t r l ain f e a e s ih f l a a l o he Ap ele )' . i
o
mi
y
'
Co r as fn st tte Ba k u ty Co r c re t u i z d a s b e tv a ay i t d tr n
u t lo i d ha h n r pc u t o rcl tl e u j cie n l ss o eemie
y i
s b tnilc rany d ai wi ij re r s lig fo fna ca h r S el r Ge r e No.
u sa ta etit e l
ng t n u is e utn r m i n il a m. e n e o M ,
h
0 AP9- 00445CED,201 W L 1
2
229840,a *4 ( nkr M . Fl Apr 11,201 ( tngI r
t -5 Ba . D. a. .
2) quoi n e
Le i,4 4 B. 91 ( n r S. Fl.201 ) (d pi a s b e tv a ay i f rd tr nng
vn 3 R. 9 Bn k . D. a
0 aot
ng u j cie n lss o ee mii
s b tnil e tit frc s siv l n ij r fo ûn n il a m) Th e d n ed mo tae
u sa ta c rany o a e n ovig n u y r m a ca h r . e vie c e nsrtd
ta b t Ap la t k e t a tera to s we e s bsm tal c ran t c u e ij r t t e
h t oh pelns n w h t h i cin r u tnil e ti o a s nu y o h
y
Appele . Fo e m pl Cha l Ka t tfed t tt Se te e di notf e rg a t the
les r xn e, res ne esi
ha he tlm nt d
e l i ht nd ha
kne Appele woul as e ta cai . Se Nov.9,2011Hrg Tr,a 460;Nov. 20,2011 Hr g
w
les
d sr l m
e
' . t
'
Tr , t61 -1
. a 2 3.
10

whie mi m ii Appe les f e . Eve whe t PI Lawye s a e
l ni z ng
le ' e s
n
n he P
r m nded t Se te nt t
he tlme , he
a sg
s ined pori n t t Bad Fat Cli s was sil ls t n t a o t Pr e sve had
to o he
ih am
tl e s ha he m un ogr s i
pr vi l ofe e Appelee t s tl t Bad Fat Cl m s i Aprl 200
e ousy f r d
l s o e te he
ih ai n
i
4. Eve m o e
n
r
e egousy,t Se te ntco aned a pr son i whih t Pl La r woul i m niy
gr i l he tl me
nt i
ovii n
c he P wye s
d nde f
Pr es i f a c am s of a t ne s fes a s re by Appelee ,a pr vii whih e
ogr sve or ny l i
tor y' e s e td
l s
o son
c ven

ma eCh re Ka et o o tbl.S eNo 9 2 1HrgTr, t4 8 9( No 2 2 ) No .
d als n mc mf ra e e v. , 01 ' .a 5 -5 ECF . - 2 ; v
1 ,2 1 Hrg Tr,a 61 -1 ,61 -1 ( No 2 1 ) Ad i o ly te f c t a te PI
0 01 ' . t 1 3 5 7 ECF . - 3 . dt nal, h a t h t h P
i
La r r f s d t dicos t t r oft Se te ntt Appel e a r quiedt m t obt i
wye s e u e o s l e he e ms he tlme o
le s nd e r he o an

ac u t r e f rh rd mo srtst a t i ij r wa w11 . S eNo 7 2 1HrgTr, t 8
o r o d r u te e n tae h t hs nu y s 111 e v. , 01 ' .a 9 1 ,1 -11( No.2- ) Appelnt atmp t es pela lt by cai ngt tt y di
01 09 ECF
21 .
la s te t o ca ibiiy l mi ha he d
notc tolt a l a i oft Se teme snc t i cle sa ove i. Se Appe lnt Br,a
on r he loc ton he tl nt i e he r int ppr d t e
la s . t

21 2 Thi Co r rj cst i cam b c us Ap la t d a td te Set me ta d f re ul
, 3. s u t ee t hs li e a e pelns rfe h tl n n o c f l
e
y
r co me d i t t r c int whie omit ma e i de a l i or t ob a n i or d
e m nde t o hei le s
l
ti
ng t ral t is n der o t i nf me
lnt o
t r he e c i . e ni t 6, . t s
c e .2 N o o f c Appela st do eihe oft s a tons Se Opi on,a 1 61 l i
ons nt1
ne or ed

ce rt a Ap eln sa td itn in ly i sr cmi g a d n g tai g t S tlme tt ij r
la h t p l t ce n e to al n tu t n n e oitn he et n o nu e
a
e
A p lee .
pe l s

Se ond, A ppe l nt ' a tons w e e m a i i .3 M ai c n be i ple whe a de o
c
lcous l
lce a
m id
n
bt r
la s c i
r

c mmisa a tta i twrng u a d wi u j s c u e o e e sv e e i te a e c o
o t n c h t s t o f l n t t u t a s r xc si e v n n h bsn e f
d
ho

1 Ths Co r a re wih t eBn k p c Co r t tt ee ae to b ig omiso si tej it
2 i u t g e s t h n nlty u t ha h r r r u ln
sin n h on
l te t t t PI La ye s s ntt t r c i nt . The Ba
e t r ha he P w r e o hei le s
nknz c Cour f und t t i ç a l d t
pt y
to
ha t ç ie o
f
i o m t cle s i t Bad Fat Lii ton t tt s tlm e i ude a r l s of a 1ba
nf r he int n he
ih tgai ha he e te nt ncl d eea e
1 d
f t cli sbutal t no s i n
aih am
locaed
pecfc mountt s h c am s f l t i or t c int oft
o uc l i , aied o nf m he le s he
t a a o mtoft s te
otl m t
he etl ment f ied t a l e t vaue oft ba f t cai st ber las d,
, al o nayz he l
he d aih l m o
ee e
and f ie t dicos t a ount of a t neys f es t be pai a r s t of t s tlm e .
a ld o s l e he m
tor ' e o
d e ul
he e te nt'
'
Opi o a 1
ni n, t 4.

1 OPno , t61(i- ( p l ns)a to weewr n f l Th r wa noj s c u ef rter
3 iin a
tl Ap el t' cins r o g u. e e s u t a s o h i
-he
a
a tons Thera tonsweemaii .
ci . i ci
r lcous'
).
11

p ro a hard, pt o i - l.'Th ma , d Ap x a 5 8( u tn l r W ak r 48F.d a
es n l te s ie r 1 wi1' o s Fe . p' t 4 q o ig n e le , 3 t
l
'
11 .4 Thee smpl i no vald r a o frAppelnt'co uc i s rty ne itng t
64)1
r i y s
i esn o
la s nd t n ecel gotai he
Se te ntwihoutt Appe les whie a tmptng t c r up t f c t tno pori oft
tl me
t
he
le
l te i o ove
he a t ha
ton
he
Se teme wa a toned t t Bad Faih Cl i s Appe lnt c nno e n e ai t i
tl nt s ppori
o he
t
am .
la s n t ve xpl n her
a tonsa smpl a tm ptt negae a fndi ofm ai i c
ci
nd i y te
o
t i ng
lcous onduc by blm i Pr e sve or
t
a ng op s i

t i own clen s The e de cla l de
her
i t.
vi nce e ry monsr t s t t Appe lnt s cii ly a t d wih
ta e ha
la s pe fcal c e t
a most t r Appel e a wa e t ha m t m by elmi tng t l ga f e t twe e
ni iy owa ds
le s nd nt d o r he
i nai he e l e s ha r
rg f l owed t Appel e .s Thi Cour fnds t tAppe lnt 'aci ns we e malc o by
i htuly
o
le s l
s
ti
ha
la s to
r
ii us

itnin l a dwi o t u tc us a rn igteS tlme tt ij r t eAp le sl
n e to al n t u j s a e ra gn h e t n o nu e h pele .f
y
h
e
Ad iinal t i Co r rj csAp eln s cam t a t i i amee b e c o c n rc
dto l hs u t ee t p la t' li h t h s s
y,
r ra h f o ta t
a to a t t t Ba pt y Cour e r d bec us t St t Co t J
c in nd ha he nknl c
t re
a e he a e ur udgm e di no hol
nt d t d
Appe lnt la e f a i en i lt t See Appelan s Br,a 16- Re y, a 2-1 A s t
la s i bl or n nt tona or.
l t . t 25; pl t 0.
he

Ba k u ty Co r c re ty noe tth sc s d e n tp e e ta smp e itn in lb e c o
n r p c u t o rcl td,t l i a e o s o rs n i l ne to a r a h f
l
c rc cam,di c fom tri c
onta t li vored r o tous onduc,a t B ppela tqa g I t c e of
t s he
lns r ue. n he ontxt

fna ca h r i i hadt i gn amo er b s cam b sd o wilu a d maiiusij r '
i n il am,t s r o ma ie
r o u t li a e n lf l n l o nu y.
c
'
Opiin a 6 ;s el r Bab e 4 9 B. 1 3 2 8 9 ( n r S. Ga 2 2 (i dn ta a
no , t 2 e n e r e , 7 R. 9 , 0 -0 Ba k . D. . 01 ) fn ig h t

1 Ths Co r rj cs Ap eln s b l alg to t t t e Ba k u ty Co r c la s d t e
4 i u t ee t p l t' ad l ain ha h n r p c u t olp e h
a
e
wilunes a malci pr i t a sng e i uiy. Se Appelan sBr a 20;Re y,a 7. A
lf l s nd
i ous ong n o i l nq r
e
l t ., t
pl t
r viw oft Opi on d
e e
he ni emonsr t st tt Bn pt y Cour r e d t a iabl lw t r
ta e ha he nknl c
t eviwe he pplc e a mde

Se to 5 3 a( )a d a ay e t e t elig fcst etbl h t tAp la t c mmitd a
cin 2 ()6 n n l z d h md ryn a t o sa i ha pelns o te n
s
ij r ta wa b t wilu a d maii u . Se Opnin 6 - 2. Si y b c u e t e s me
nu y h t s oh l l n
f
lco s e i o 0 6
mpl e a s h a
e e iu c n uc o Ap elnss p o t afn i o b t r q ie n sd e n tme irv ra.
1 go s o d t f p la t u p rs i dng f oh e urme t o s o rt e es l
yr
JThe Br pt Cour f
mknl cy
t ound t tçe c g
ha ia h Appela la e notmeey t pa hi o poc t
lnt ctd
rl o d s wn ke
b tas wihilwi twadt e( p le s. Op no ,a 1 . Mo e v r t eBa k mtyCo r
u lo t 1 l o r h Ap ele l' i in t 7
l
'
r o e, h n n c u t
f u d t a çAp eln s a to swe ewr n f la d t r wa noj s c us f rtera to .
o n h t t p la t) cin r o g u n hee s u t a e o h i cins'
g
'
Opi o a 1
ni n, t 7.

1 Th sCo r as rj csAp eln s cam t a Ap ele dd n th veaprpe t itrs i te
6 i u t lo ee t p l t' li h t p l s i o a
a
e
o ry n eet n h
Se te en bec us no c r ng le w as o a ned. Se Appelan s Re y, a 1 Appela s
tl m t a e
ha gi i n
bt i
e
l t pl t 0.
l nt '

mir a igo I r O' a, 0 - 0 0 9
se dn f n e Ne 1 No. 6 AP- 0 3 ABB, 0 6 W L 41 2 6 ( n r M . F a No
20
1 6 3 Bn k . D. l . v.
28,201 d nots
2) oes uppor t sc l in.
thi oncuso
1
2

b e c o a s c rt a r t n wa wilu a d maiius u d r S ci n 5 ()6 t b r a
r a h f e u iy g e me t s lf l n lco n e e to 23a () o a
de orsdichage . Thi Cour fndst tt Ba r pty Co tdi note rby i pe nty
bt ' s r )
s
t i ha he nk u c ur d
r
nde nde l
e uai t Stt Cou tJ
val tng he a e
r udgmen a fndi t tAppel nt ha c
t nd i ng ha
la s d omm itd a w ilula
te
lf nd

maiius ij r S e Op no ,a 61 6 se as I r J n i s 6 0 F.d a 1 3 I r
l o nu y. e i in t - 2) e lo n e e nng , 7 3 t 3 4) n e
c
De ri, 1 - 8 4 6 2 2 W L 3 7 0 ,a * ( D.Fl.Au
maas No. 2CV- 0 2 , 01
7 9 21 t 3 S. a g.31 2 2 (ee tn a
, 01 ) rjcig
de o ' cai t ta fa ulntta f r i r medili naur a nota i pe ntc us of
bt rs l m ha r ud e r ns e s e
a n t e nd
n nde nde a e

a to ta c n b e c pe fo d s h r e u d r S cin 5 3 a( ). Mo e v r t e
cin h t a e x e td r m ic ag n e e to 2 ()6 )
ro e , h
d t r i ton t t t St t Cour J m e t i nondic r bl due t Appe lnt 'eg eg o
e e m nai ha he ae
t udg n s
s ha ga e
o
la s r i us

c n u ti sn cu ig t e Set me tt s i Ap ele wi n te p nd S cin 5 3 a( )t
o d c n t ztrn h tl n o pt p le s l o x a e to 2 ()6 o
e
e
l
i l a li e i lb e c sofcon r c . Se Ka a u,5 U. a 62.
ncude 1 ntntona r a he
ta t e wa uha 23 S. t
Thus t Ba pty Co tdi note ri fndi t t t St t Cour J
, he nknz c
ur d
r n i ng ha he a e
t udgme was
nt

e c pe fo ds h r e u d rS ci n 5 ()6 be a s i aie fo Ap eln s w1 11a d
x e td r m ic a g n e e to 23a () c u e t rs s r m p la t' 1 n
1
maiiu ij r t Ap ele .
l o snuy o p l s
c
e
Q

TheBanknmtvCour' Deer nai t tColaerlEsoppe Apple t
c
ts t mi ton ha lt a t l id o
FacualFi ngsi t St t Cour Ac i a Chaptr 11Pr e nc
t
ndi n he ae
t ton nd
e
oce di

t lae a tt p e p o iist er l iain o is e t tha ebe n a j iae i a
ç ltr l so p l r hbt h ei g to f su s ha v e dudc td n
co
t
pro a ton. The prnc pl of c lt r eso la y i dic r e e i pr ee ng i
i r ci
i i es
olae al t ppe ppl n s ha ge xc pton oc di s n
bn pt y c t' I r Col n,No.11 APnknl c our. n e vi
'
- 3035J 201 W L 3775884, a * ( nkr M .
PS, 2
t 3 Ba . D.

Ga. 28, 1 (ppl ngcolaealesoppe prncpl t deemi whehe aci lc tmpt
Aug. 20 2) a yi
ltr t l i i es o tr ne t r vi ont

o d ris e b asae c u twa a p o rae f rs mmayj dg n u d rSe to s7 7 a(
r e su d y tt o r s p r p it o u r u me t n e ci n 2 ()2)
a d 5 3a( ) ( u tn I r Bu h, 2 F.d 1 9 1 2 ( 1h Ci.1 9 :.Li e s ,toltr l
n 2 ()6 ) q oig n e s 6 3 31 , 3 2 1 t r 9 5
k wie ç laea
c
e t l i a ia e i ba pt pr e ngs i vi t de al of dic r e t r
soppe s pplc bl n nknl cy oce di
nvol ng he ni
s ha g mde

( e to )7 7' I r J c b ,3 B. 1 ,1 ( n r E. Pa 2 08 . ç bmk p c c u t
S cin 2 . n e a o s 81 R. 47 61 Bn k . D. . 0 ) t r nlty o r
'
A
ma r l on co lt r leso lt r a h c l i a
y ey
la e a t ppe o e c oncusons boutc ra n f t ,f e os r ltga i of
e ti ac s or cl e eii ton
13

t e f cs a t n c i rt t f c s a çvi nc ofno s ha g biiy.'' I r Thomas
hos a t , nd he onsde hos a t s e dt e
ndic r ea lt ' n e
,

28 F d.Ap ' a 5 ( i to o te ) Hee Ap elnsc am t tt e Ba k u ty Co r
8 e
px t 48 ct in mitd . r , p la t li ha h n r p c u t
a
e r i a yi c lt r leso lt ce ti f cua fndi de e m i d i t Stt Cou t
red n ppl ng ola e a t ppe o ra n a t l i ngs t r ne n he a e
r

Aci a t Cha e 11Pr e ng. Se Appela sBr,a 25
ton nd he pt r
oc edi
e
lnt . t -29. Thi Co ta es e e c
s ur ddr s s a h
oft s c amsi t r
he e l i n u n.

à SGt Cour Aci
. e
t ton

çftep irj d me twm rn ee b asae c u tt e t c laea et p e 1w o
t h ro u g n s e d rd y tt o r, h n he o ltrl so p l a f
l
t a saemu t ea pidt d tr netej d me tsp e l i ef c. l r Covi, 01 W L
h t tt s b p le o eemi h u g n ' rcusve fe t' n e l n 2 2
'
3 7 8 4 a * ( in I r S .La rn ,9 F.d a 6 5 7 ) t o i asd crn o c laea
7 5 8 , t 3 ct g n e t u e t 91 2 t 7 - 6 . t rd ' o ti e f o ltrl
i
Fl
eso
t ppel ba s tde ial pa te fo r ii tng is t t ha pr ousy be n de de
r i ntc
ri s r m eltga i s ues ha ve evi l e
ci d
bewe t m .' M ad av.
t en he '
'
ur County de Hom eLoa . nc., 3 4Fe Ap x 5 9, 8( 1h Ci.
r wi
ns I
4 d. p' 0 51 1 t r

2 0 )( u tn Mo i Oi Co o v.S e i 3 4 S 2 3 2 3 4 ( a 1 7 ). i d rFlrd
0 9 q oig bl 1 r . h vn, 5 o. d 7 , 7 F1. 9 7 ) t e o ia
un
lw,tef lo n ee n smus b eGb ih d b f r c lae a e tp e ma beiv k d:()
a h o lwig lme t
t e s ls e eo e oltr l so p l y n o e 1
t eis a sn emu tbeie tc lt t eo ed cd d i t ep irli ai n ( )te is emus
h sue t tk s d n ia o h n e ie n h ro i g to ; 2 h su
t
t
h v b e a mal l iae i tep irp o e dig ( )tep ird tr n to o teis emu t
a e e n c ly i g td n h ro r c e n ; 3 h ro eemiain f h su s
t

ha e b e a c ic la d n c sa y pato t ej d me ti t a e rird cso ;a d ( )te
v e n rt a n e e sr r f h u g n n h t ale e iin n 4 h
i
sa r ofpr i t prora ton mus ha bee a las a srnge a t sanda d ofpr of
t nda d
oof n he i c i
t ve n t e t s ti nt s he t r
o
i t l trca e' l r Forne ,No.1 CVn he ae s .' n e t r
2- 60478,201 W L 361
2
3879, at* ( D. a.
4 S. Fl Aug.21
,

2 1 )(iain o te )
0 2 ctto s mitd .
Appe lnt cai t tt Bankr pt y Cour e r d be us t St t Cour J
la s l m ha he
u c
t re ca e he a e
t udgme wa
nt s

b s d o t u te c me t7 a d t e is e o a wilu a d maii u ij r u d r S cin
a e n mj s mi h n 1 n h su f
lf l n
lco s n u y n e e to

1 ç o saeacam f rt u te rc me tu d rF o ialw , apli ifmus alege f ct t t i
7 1 tt li o mj s n ih n n e l rd a
T
antf
t l a s ha , f
tke a tu wo d s
a n s r e, ul how:()a be i wasc e rd upon t defnda ;()t defnda
1
neft
onfre
he e nt 2 he e nt
et rrquetd t be i orknowi y a volmtrl a ce e i;( abe fttowe t t
ihe e se he neft
ngl nd t a iy c ptd t 3) nei l d o he

5 3 a( )i adfee tis ea dwa n v rl iae n rne e s r f rt eS aeCo r J d me t
2 ()6 s ifrn su n s e e i g td o c s ay o h tt u t u g n.
t
Appelan sBr,a 25.8
l t . t 1
A r viw of t Ba
e e
he nknpt Cour' Opi on de onsr t t tAppela s cli s of
cy
ts ni
m taes ha
lnt ' am

e r ra ewihoutme i.TheBa r pt y Co tado e ce t n f t lfndi die ty fom t
ro r t
rt
nk u c
ur pt d rai acua i ngs r c l r he
Stt Cour J m e . Thos fndi prm a iy deat wih t r l tons p be we n t Pl
ae
t udg nt
e i ngs i rl
l t he e ai hi t e he P
La r a Appe le a t pr ee ngsi t PI Cli sa Ba Fat Cli . Opi on,
wye s nd
le s nd he oc di n he P am nd d ih a ms
ni
34-39. Fis, he ef c ua Endi we ea t ly ltga e i t Stt Co tAci n be a et y
rtt s a t l
ngs r c ua l ii t d n he ae ur to c us he
we e deer ne a tr a t n- e tilon t mert a de i diecl fom t Stt Co t
r t mi d fe e we k ra
he
is nd rved r ty r he ae ur

J me . Sec
udg nt
ond,t f c a fndi swe e crtc la ne s a y t t St t Cour J
he a m l i ng r ii a nd ce s r o he a e
t udgme
nt
bec us t y f m e t bassf fndi t tAppel eswe e en ild t a a r be a et y
a e he or d he i or i ng ha
le
r tte o n wa d c us he
r pr e t d a 1oft c int de pie a lc ofwrte e age tl te . See e. , Sut Cour
e es n e 1
he le s s t a k
itn ng men e tr
g.
e
t

J d me t a 1 1 T r , h sa d r o pr o u e b t ds h z ea u j s e rc me tae
u g n , t 6. hid t e tn a d f o f nd r o h ic ag nd n u t n ib n r
9
t s me. Fi ly,t Ba pt Cour core ty o y a ed f c ua sndi t t we e
he n
na l he nknz cy
t r c l nl dopt a t l
ngs ha
r

d fn a t a d ( )u d rte cru tn e ,i wo l b ie ui bl f rt ed fn a tt rti
ee d n ; n 4 n e h ic msa c s t ud e n q t e o h e e d n o ean
a
t be i wiho pa ngt vaue t r .' I r W ind, 05he neft t ut yi he l he eof ' n e a No. CV-1 T27M SS,2007 W L
856

9 31 5 a * ( . F a M a. 7 2 0 )(iigW . To s n Co ta tn . n . J n e Cii
6 6 , t 5 M D. l. r 2 , 0 7 ctn R. wn e d nr cic I c v. e s n vl
1 n t n .7 8 o. d 9 , 0 Fl. s. . p. 9 9 .
Co s.I c, 2 S 2 2 7 3 3( a DitCtAp 1 9 )
8 .
A P la salo a g t tc lt r e t lc nnotappl be a e t St t Cour J
Pelnt s r ue ha ola e al soppe n
y c us he a e
t udgme
nt
a i t i ole tve de e
ppled o ç lc i
c
f ndan s's t c
t ' o he onduc i t St t Cour J
t n he ae
t udgm e c nnotbei t d
nt n
mpu e
on t m i vi ly. Appe lnt Br,a 2* 28. Addii ly, Appel nt cli t tt y c
he ndi dua l
la s . t
tonal
la s am ha he anno
t
behed la e f t a tonsoft ot rPI La r be us t ewasno a ncy r l to hi .
l ibl or he c i
he he P wye s ca e her
ge
e ai ns p
Appela s Br,a 27-28 n. The e cli s a e wihoutm e i a de d of l ga s ppo t
lnt . t
, 34.
s am r t
rt nd voi
e l u r.
Appela sc
lnt onve e l omi t f c t tt St e Cour J
ninty
t he a t ha he at
t udgme i ag ns t m , aong wih
nt s ai t he l
t
t o he lw fr s f t c
he t r a im , or he onduc t ryi t St t Cour J m e . Si y bec us t
t mde l ng he ae
t udg nt mpl
a e he
sae c tr er t t pa te cole tvel a çhe De e nt' i c t n pa t a doe not
t t our ef s o he ri s lc i y s ç
t
f nda s' n erai rs nd
s
s cik al i ntf t Appela t does notma colae a e t
pe t ly de iy he
lns
ke l tr l soppeli pplc bl . The St e
na ia e
at
Co tJ m e - whih f
ur udg nt
c ound Appe lnt la e f over$2 milon i bi ng a ns t m .
la s ibl or
li - s ndi gai t he

S eS aeCo r J d me t a 2 !3
e tt u t u g n , t 2 .

1 The Ba knl c Cour wa ca e u no t a
9
n pt y
t s r f l t o dopta f t lfndi whih we e no nec s a
ny acua i ngs c
r t es
f
r
y
or t Stt Cour J
he a e
t udgme . For e mpl ,t Ba pt Cour di no a
nt
xa e he nknl cy
t d t dopt a of t
ny
he

fc l idng rg r igta çth S aeCo r e p e s dc n e (e a dn lt PI La e s
a ma fn i s e a dn h t çl e tt u t x r se o c m r g r ig he P wy r '
l
vi ai ofs ver lr l soft Fl rdaBa , aci nsa oddswih t it r t oft rc int,a
olton e a u e
he o i
r to t
t he n e ess hei le s nd
i e i hn m t Pl ntf s' Se Opi on, a 33.
nt ntonal r o ai if . e ni t
'
15

ie tc lot s is e i t eSaeCo r J d me t S eM a m a 3 4Fe Ap ' a 51 (iig
d n ia t ho e su s n h tt u t u g n . e d , 4 d. p x t 8 ctn
God n v Go d n 5 S 2 4 , 4 ( a 9 2)(ttn ta c laea e t p e ç p l swh n
r o . r o , 9 o. 4 0 4 F1.1 5 ) saig h t o ltrl so p l s pi
a e e
t t ca esofa ton a edif r ta e t t pari fom ltga i i t s co s tonl
he wo us
c i r fe en nd sops he tes r ii tng n he e nd ui y

tep it a dq e to c mmo t b t c u e o a to '.Al ug Ap la t a g eta te
h o ns n u sins o n o oh a s s f cin' t h peln s r u h t h
) ho

S aeCo r J g n ddn td cd teis o wi f l n maiiusij r , e App la t Br,
tt u t ud me t i o e ie h sue f l u a d lco nu y s e eln s .
l
a 25;Repl a 11 2,t Ba up c Cour di nota y c ltr leso lt t is of
t
y, t -1 he nkr t y
t d
ppl ola e a t ppe o he s ue

wilu a d maiius ij r ,b to l t c mmo q e to s o f c b t e te b n nlty
l l n l o nu y u n y o o n u si n f a t ewe n h a k pc
f
c
pr ce di a t St t Cour Ac i z The Ban pt y Co tc r c l and i pe nty
o e ngs nd he ae
t ton.o
knl c
ur ore ty
nde nde l

d tr ne t a Ap eln sc mmitd a w11 a d maiiu ij r u d r S cin 5 3 a ()
eemi d h t p la t o te
111 n
lco s nu y n e e to 2 ( )6
ba e o t s f c sa t e denc a t si ony s itd a ti . Se I r Col n,201
s d n he e a t nd he vi e nd e tm
ubm te t ral e n e vi
2

W L 3 7 8 4 a * (iig l r S .La rn ,9 F.d 6 2 6 - ( 1h Ci.1 9 )(ç hi
7 5 8 , t 3 ctn n e t u e t 91 2 7 , 75 76 1 t r 9 3 ç l
W e
cola e a eso lm a ba aba
lt r l t ppe y r nknmt y c tfo r ii tng f c ua is spr vi usy d i d
c our r m eltgai a t l s ue e o l ecde
i sa eco t howe r t uli ae is ofdic r a lt i a l lquesi t be add es e
n t t ur,
ve , he tm t s ue
s ha ge biiy s ega
ton o
r sd

b te b n np c c u t i te e ecs o is e cusv jzidcin t d tr n
y h a k zty o r n h x r ie f t x l ie l s it o ee mie
r
o
dic r ea lt ' Ac or ngl t Ba ptyCour di noteri a yi c ltrleso l
sha g biiy,
). c di y,he nknz c
t d
r n ppl ng olaea tppe
tt c
o he omm o f malfndi sbe wee t ba pt y pr e ngsa t Stt Cour Ac i
n ac
i ng t n he nknz c oce di
nd he a e
t ton.

iaCha e 11Pr ee nc
i ptr
oc di
TheBa nmt y Cour as a id c l tr le t lt c ra n f malfndi fom is
nk c
t lo pple olae a soppe o e ti ac
i ngs r t
or rdimisng t Cha e 11Pr e ng. Opi on, t40
de s s i he
ptr
oce di
ni a -41.To a y colae a eso
ppl l tr l t ppelf
or

ap irfd rl u g n ,t eis mu tb ie tc lt ta a j dc tdi t ee rirltg to
ro e ea j d me t çh sue s e d nia o h t du iae n h ale iiain;
t
t i s m us ha bee G c ua l ltga ed' i t e ri r l w s t r s uton of t is i us
he s ue
t ve n a t ly ii t n he a le a ui; e ol i
he s ue m t

2 The Ba r t Cour explcil satd t t i wa not g vi t St t Cour J m e t
0
nk up cy
t
i ty t e ha t s
i ng he a e
t udg n

p e l ieef c frteis eo wilu a dmaiiu ij r u d rS ci n 5 ()6 a dt a i
rcusv fe t o h su f lf l n lco s nu y n e e to 23a () n h t t

w asi pe n l e ua i t si s Se O pi on,a 61
nde nde ty val tng hi s ue. e ni t -62.
16

h v b e aciia a d n c s ay p r o t e (al r j d me t;a t e S ry a an twho
a e e n rtc l n e e s r at f h e ri ) u g n ' nd h pat g is m
e
t e ri rde ii n i a s re mus haveha a f la f i opport t t ltg t t is i t
he a le c so s s e td
t
d ul nd ar
tmiy o ii a e he sue n he

e rir p o e dn .' I r Tho s 2 8 Fe .Ap x a 5 8 ( u tn IA.Du b n I c v.
ale r c e ig'' n e ma , 8 d p' t 4 q o ig .
ris n .
J fes nNa' Ba k 7 3F.d 1 41 1 4 ( 1h Ci.1 8 ).
efro tl n , 9 2 5 , 5 9 1 t r 9 6 )
He e t Ban u c Cour ado e ce t n f c ua fndi fom t Cha e 11
r , he
kr pt y
t pt d rai a t l i ngs r
he
ptr
Pr e ng whi h de l t Appel nt ' e m i ,t r c
oce di
c
atwih
la s a ngs hei onduc i lvihl s ndi f
t n a s y pe ng unds

d piet i knowldg oft St t Cour Ac i a t i knowl dget tt woul lkel be
es t her
e e he ae
t ton, nd her
e
ha hey
di y
la ef a sg t a a o mtofm o
ibl or i nik nt m t
ney. Opi on,a 40-41. Att he rng on M a c 20,2009,
ni t
he a i
rh

t Ba u cy Cour e i il sa e t ti wa dim isng t Cha e 11Pr ee ng be a e
he nkr pt
t xplcty tt d ha t s s s i he
pt r
oc di
c us

ofAppelnt'é tvai a i en,(n) flng t i peii ,c e wih t i eni l
la s t i ton nd nt t i ii her ttons oupld t he nt tona
mo
d seg r f t c ns ue es oft i pr peii n a to t t s
ir a d or he o eq nc
her e- tto c i ns ha how a l c of good f ih i
ak
at n

fl ( eCha tr1 P o e dn l' Se M a . 0, 0 9HrgTr, t1 .I i ce r h t h fcu l
ii t
ng h
p e 1 r c e i g . e r 2 2 0 ' .a 1 t s la t a t e a ta
'
fndi r ai t Appela s c
i ngs eltng o
lnt ' onduct whih m a t m una e t pos a bond a e c ii a
c
de he
bl o t
- r rtc l
t t Ba up c Cour' de e mi ton t tt Cha e 11Pr ee ng wasfl d i ba f ih.l
o he nkr t y
ts t r nai ha he pt r
oc di
ie n d at z
Ac r ngl t s fndi we e a t ly ltg t d,c ii la nec s ar a Appelan sha a
co di y, he e i ngs r cual ii a e rtca nd e s y, nd
l t d
f land f i o r u t t ltga et s is . Addii ly,t r a e c mon is be we n
ul
ar ppo t niy o ii t he e s ues
tona l he e r om
s ues t e
t i t n m a tra t Cha e 11 Pr e di .2 Appej nt ,c
he nsa t te nd he
pt r
oc e ng 2
ja s onduc i l vihl s ndi
t n a s y pe ng

2 I de em i ng whe he apeii tld unde Chap e 11s d be dim is d, c t c i r
1 n t r ni
t r
tton ie
r
tr
houl
s s e ours onsde

mutp efco sg ie b to else i I r Ph e i Pic dly Lt , 4 F.d 1 9 ( 1hCi.
l l a tr ud d y h s itd n n e o nx c a i . d.8 9 2 3 3 1 t r
i
l
1 8 ) l g nea, o rsç o sd rf co st a e ie c i tn t a us t ej iil r c s a d
9 4 . n e rlc u t t n ie a tr h t vd n e i e t o b e h udca p o e s n
c
n

t pur e of t r or ni a i pr sons or i pa tc a ,f ct s t t e de e t tt
he pos s he e ga z ton ovii ' , n riulr a or ha vi nc ha he
pe ii wa fld ço dely orfusr t t l tma eefo t ofs ur d c e t st e or e t r
tton s ie t
a
r tae he egii t f rs ec e r dior o nf c hei

rght.'I r Hac Co.ofJ c onvilsLLC,331B. 453,455 (
i s'' n e ro
a ks le
R.
-56 Bankr M . Fl.2005)
. D. a
( i I r Phoe xPica lv.Lt ,8 F. a 1
quotng n e
ni c dil d. 49 2d t 394-95)
.

2 Al o g Ap elnsc nieterapl n t S cin5 3a() seAp elnsBr, - 9
2 t u h p la t o fn h i r me t o eto 2 ()6 , e y lat .28 2 ,
h
t r i no i ca i n t tt Ba u c Cour us c l t r le t
he e s ndi to ha he nkr pt y
t ed ola e a s oppe o t s Co mt A r vi w
l n hl t . e e
oft f cualfndi a t fom t Cha e 11Pr e ng,whi h ha no hi t do wih
he a t i ngs dop ed r he
ptr
oc edi
c ve t ng o
t
Appe lnt or ni ng t Se te nt s
la s ga zi he tl me , upporst sc l i n.
t hi oncuso
1
7

mo y d s ie te hih lk lh o o ben la l f ra sg i a tj g n s r s c mmo
ne e pt h g i ei o d f ig ib e o in t n ud me t hae o n
k
f c li s s wih r ga d t t Ba pt Cou ts dee m i ton ofCountIand Co I of
a ma s ue t e r o he nknl cy
r ' tr na i
unt V
t a sr c
he dvera y ompli s whih we ebot de ded i f vorofAppe lnt . Se Opi on,a 42ant , c
r
h ci n a
la s e ni t
2
46,5
3-55.3 Acc di y, t Bank pt y Co tdi note r i ap yi c ltr le t lt
or ngl he
nl c
ur d
r n pl ng olae a soppe o

c ran f c ua fndi fom t Cha e 11Pr e ng.
e ti a t l i ngs r he pt r
oc edi
Eve i t s Co t we e t de e mi t t t Bn nlt y Cour e r d i a yi
n f hi
ur
r o t r ne ha he nk p c
t re n ppl ng
c ltr lesoppe t f cua fnd ngso t St t Co tAci n a t Cha e 11 Pr ee ng,t
olae a t l o a t l i i
f he ae ur to nd he pt r
oc di i

wo d notwa rntr r a oft Opi on. The Ba u c Cour a i cola e alesoppelt
ul
r a eve s l he ni
nkr pt y
t ppled lt r t
o
fndi s fom t Stt Cour Ac i a Cha e 11 Pr e di smpl t s tnta e a
i ng r he a e
t ton nd
pt r
oc e ng i y o ubsn it nd

c ro o ae iso id p n e tf cu lfn i g . S e Opiin a 3 Ct c o t f r g i g
o r b r t t wn n e e d n a ta id n s e
no , t 9 Ea h f he o e o n
fndi o t Stt Cour i e il t cola e alesoppe efec he e a s r e t bolt rt s
i ngs f he a e
t s ntted o lt r t l f t r nd e v s o se hi
Cour' i pende buts t nta l i n i lfndi s touti s c i Ioft sM e or nd z
ts nde
nt
ubsa ily de tca
ngs e
n e ton
hi m a zm

Opno ', ( i Co r' p irfn i g (nt eCh pe 1 Pr c e ig o l sr et b se
iin. 41 ç s u ts ro id n s i h a tr 1 o e dn ) ny e v o oltr
)
Th
t i pe ntfndi stou i s ci 1oft sMe a
he nde nde i ngs e t n e ton
hi morndum Opi on.). The Ba pty
ni '
nknl c
Cour he d a sx- y he rng i whih i i pende l he r t si ony a r ceved e de .
t l
i da a i n
c t nde
nty a d e tm
nd e i
vi nce
The Ba pt Cour t n is d a l hy opi o i whi h i i pe nty de i d f ma
nknl cy
t he s ue
engt
ni n n
c t nde nde l rve ac l
fndi ba e o t e de e a t si ony s
i ngs s d n he vi nc nd e tm
ubmit a t he rng.See Opi on,a 4-31
ted t he a i
ni
t
.

The e f cua fndi we e m a i pe n l by t Ba
s a t l i ngs r
de nde nde ty
he nknmt y Cou ta wihouta yi
c
r nd t
ppl ng
a de e e e t t Stt Cour Ac i a t Cha er 11 Pr e ng. Se Opi on,a 4.
ny f r nc o he
e
t ton nd he
pt
oce di
e
ni
t

Thus a er woul be har es. l r Ca a la 11 B. 365,368 ( . Fl M a 22,
, ny ror
d
ml s n e r pel, 5 R.
M D. a. y
2 I count I t Ba u c Cour f
3 n
he nkr pt y
t ound t t at h Appe lnt s nt mone lvihl ,
ha lhoug
la s pe
y a s y
Appe le f ie t pr t tt y di s wih t i en t hi r deay,ordefaud c e t s
le s a ld o ove ha he d o t he nt t o nde , l
r
r dior

t Se ton727()2) Se Opi o a 46.l CountI t Ba u c Cour f mdt e n
mder ci
a( . e nin, t n
V,he nkr pty
tot hat ve
t ug Appe le m a ade a on Appela sf t pr e fom t Se te e , he e was
ho h
le s de
m nd
lnt or he oce ds r he tlm nt t r
no e de t t de o ta e Appel nt ha t r quiie i e t c mi e zze e
vi nce ha m nsr t d
la s d he e st nt nt o om t mbe lm nt

unde Se ton523( ( .Opi on,a 53
r ci
a)4) ni t -55.
1
8

1 9 ) (i n F D.R. NK. 9 0 FE R.CI P.61 (i dng t a a b n npty c u t
9 0 ct g E
i
BA P. 0 5; D.
V.
) fn i h t a k c o r'
s
a i ai of c ltr l e t
pplc ton
olae a soppely as ha ml s be us i pe
v
r es ca e nde ndent e de e s
vi nc uppode t
d he

b n n pc c u tsd cso ) se as l r Cl b As o s,9 F.d 1 2 ,1 2 n 1 ( 1h Ci.
a k zty o r' e iin ; e lo n e u s c . 51 2 2 3 2 4 .3 1 t r
1 9 ) (p lig t e h r e s er r r l i a b n nlty a pe l;l r Fo te,2 2 W L
9 2 a pyn h a mls ro ue n n k p c p a) n e rn r 01
3 3 7 , t* (a )
61 8 9 a 7 s me .
Thus t s Co tfnds no e r r i t Bn u c Co ts dee mi ton t t c lt r l
, hi ur i
r o n he nkr pt y ur' t r na i ha olae a
e t la id t c t n f t fndi c ane i t St t Cour Ac i a t Cha er
soppe pple o erai acual i ngs ont i d n he ae
t ton nd he
pt
11 Pr ee ng.
oc di

D.

The Ba
nknmt Cour' De e mi to t tHa ly Ka sDic
cv
ts t r nai n ha re
ne' s hmxe wa Ba r d
s re

P ru n t 1 U. C. 7 7 a( )
u s a t o 1 S. 9 2 ()7
Cot Il of t a r a y c
mt l
he dve s r ompl i s
ant ough a de a of dic r l r Se tons
t
ni l
s ha ge mde c i

7 7 a( )a d7 7 a( )b camigta HalyKa ec u e teP rn rhpt p yh sp ro a,
2 ()7 n 2 ()2 y li n h t re n a s d h a tes i o a i e s n l
non- s r a e de s wih t i e t de a a hi r Appelee a lt t c lc fmds
dicha ge bl bt t he ntnt o l y nd nde
l s' biiy o ole t t

t e teS aeCo r J d me t Se to 7 7 a ( )p o ie t a aba k p c c u tEh l ga t
md r h tt u t u g n . cin 2 ()7 r vd s h t n nzty o r t al rn
s
ted b o ads h r e u ls .. tede t rh sc mmitd a y a ts e iid i p r g a h ( )
h e tr ic ag , n e s . h bo a o te n c p cfe n a a rp 2 ,
( ) () ( ) o ( )o ti s b e to ,o o wi i o e y a b fr te d t o te tl o t e
3 , 4 , 5, r 6 f h s u s cin n r t n n e r eo e h ae f h ii f h
h
ng
peii or d i t ca e, i c
tton,
urng he s n onnec in wih a he c e,unde t s tte or t r t
to
t not r as
r hi il
mde he

Ba k p c Ac, o c r i ga i ie . .' 1 U.. j7 ()7 (mph ssa d d .ç ' d n
n nlty t c n en n n nsd r . . 1 SC. 27a ( ) e a i d e ) to e y
'
'
l
a d b o ' d shag t e j 7 7 a ( ) te p an if mu ts o t a t e d bo ta fre ,
e trs ic r e md r 2 ( )2 , h litfs s h w h t h e tr rnser d
r move desr yed,mutlt d,o c eaed pr ry wih t i e t hi r dely,ordefa
e
d, to
ia e r onc l
ope t t he nt nt o nde , a
r ud

hsce io s' I r Tilr 3 0B. 3 3 3 0( n r N. Fl. 0 5 (iain o te ) t e
i rdtr . n e pe , 6 R. 3 , 4 Bn k . D. a 2 0 ) ctto s mitd . Th
'
pli if be rt btr n ofdemonsrtngacualfa e i en.' I ( tngI r M il ,3
antfs a he lde
tai t rudulnt nt t' d. cii n e ler 9
F. 301 3 ( 1hCi.1 ) ç-o ve,be us ade ori unlkeyt a thi fa e
3d , 06 1 t r 994). çlwe r ca e bt s i l o dmi s rudulnt
l

19

i e ,a fndi ofa t li e tm a be ba e on cic sa ta e de e or i e r fo t
ntnt i ng
c ua nt n
y
sd
r um t n i l vi nc
nf red r m he

s ro n igfcsa dcrumsn c s' l . ctto so te )
u r u dn a t n ic yn e . d (iai n mitd .
'

To p e al o a cam u d r Se to 7 7 a( ) rg r i g a p e ius b n n c
rv i n
li n e cin 2 ()2 e ad n
rv o a k mty
p o e dngiv lig a i i e, ce io mu ttsa ls b ap e o d rn eta ( )t eewa
r c e i n ovn n nsd r a rdtr s t tb ih y rp n e a c h t 1 h r s
e
d sr cin o c n e l n ,()wihn o e y a o t fln o t d b o ' c s ,( )o te
e tu to r o c ame t 2 t i n e r f he iig f he e t rs a e 3 f h

p o e t o t e ett o a i i e,()b t e d b o ,()wh t itn t hn e ,d ly o
r p ry f h sae f n nsd r 4 y h e t r 5 h he n e t o id r ea , r
defa c e t s' l r Philps 418B. 445, ( nkT M . Fl 2009)( tngI r Ung r
rud r dior . n e li ,
'
R. 465 Ba . D. a.
cii n e e ,

3 3 B. 4 ,4 0 ( n r M . F a 2 0 );s eas I r W es n ed No 0 - - 2 AJ
3 R. 61 7 Ba k . D. l. 0 5 ) e lo n e ie fl , . 9 AP 25 6 C,
2 1W L 1 4 5 3 a + ( n r S. Fl. a .1 , 01 )2 Acin t d n ad shag t e
01
0 8 6 , t 8 Ba k . D. a M r 8 2 1. to s o e y ic r e md r
4
Se ton 727 a e c tue srcl agans t c
ci
r onsr d tity
i t he ompli ng pary a lbe al i f vor oft
ani
t nd i r ly n a
he

d b o . S eI r Fen n e - c a 4 F.d81 ,8 6 ( 1hCi. 0 6 . t ce trse n t
e tr e n e r a d zRo h , 51 3 3 1 1 t r 2 0 ) û rdi e kig o
A
o
de a de t ' dicha ge be r t bur ofpr a t e c elm e by apr po r nceoft
ny
b ors s r
a s he den
oof s o a h e nt
e nde a
he

e ie e' I r Dee e 3 B. 3 9 3 4 ( n r N. Fl. 0 7 (iig FE R. NKR.
vd nc . n e r v , 81 R. 0 , 2 Ba k . D. a 2 0 ) ctn D. BA
'
P.
4 0 ;Gr g nv. r e, 8U. 27 28 ( 9 1) çlwe r o c ace io me t t i iiil
0 5 o a Gan r 49 S. 9, 7 1 9 ).f-o ve, n e rd tr es hs nta
l
bur n,t bur n s fst t de ort s
de he de hit o he bt o how by apr ponde a e oft e de e t the o s
e
r nc
he vi nc ha
r he

i e tte t ads h r e' I . ctn l r S e e , 0B. 7 0 7 5( n r M . Fl. 0 0 )
s n i d o ic ag . d (iig n e tv ns 25 R. 5 , 5 Ba k . D. a 2 0 );
l
'
s ealoI r Pr os 322Fe App' 930,932( 1hCi.2009)
e s n e ont ,
d. x
1t r
.

2 çseci 7 ()7 e endst ba i f de a ofdic r t t de orsmico uc i a
4 ç ton 27a () xt
he ss or nil
shage o he bt ' s nd t n
s t taly c t mpo a ous r lt d br pt y ca e. Thus i t deb or e ges i
ubsan i l on e r ne
ea e
mknl c
s
f he
t
nga
n

o jcin b ec n u ti ac s i v lig (n i ie) te d bo ma b d n e ad sh r ei
be to a l o d c n a e n ovn a nsd r, h e tr y e e id ic a g n
ted b o ' o c s . KI E AL, LE ox BANKR T Y ! 7 .0 ( 5h rv. d.1 9 )
h e trs wn a e' NG T .COL IR
'
UP C
27 1 1 t e e 9 8 ;
s ealoI r W aman,No.99- W -07,2000W L 3591
e s ne t
M 1
6015,a * ( s Ci.2000)(ttngt t
t 4 1t r
sai ha
çh v s mao i o c s lw itr rtn j 7 7 a( )a d ()2 ln ste t p o iinsb
t e at j rt f a e a nep eig j 2 ()7 n a( ) ik h wo r v so y
t
y
a l ng a i vi l de ors dic r t be de ed whe he or s ta f r ,r moves
lowi n ndi dua bt ' s ha ge o
ni
n
he r ns e s e
,

detoys mutlts o conc al pr ry ofa i i rcomo ai i vi ain ofj 727()2)
sr , iae , r
e s ope t
n nsde
r ton n olto
a(
wh nt eisd rc r o aini t es be to as p rt b n r p c c s ' ( i to o te )
e h n ie o p rto s h u j c f e aae a k u ty a e' ct ins mitd .
) a
20

He e,t s Cour ûnds no e r r i t Bn pty Co ts de e mi ton t t Ha ly
r hi
t
ro n he nknl c
ur' t r nai ha
re

Ka es ds h r e s o l b b re p ru n t S cin 7 ()7 a d 7 7a ( )d e t h s
n ' ic a g h ud e ard u s a t o e to s 27a () n 2 ()2 u o i
c
onduc i t Pa t rhi ' Cha e 11Pr e ng.s Fis, t Cha er11Pr e ng wasfld
t n he rne s p s ptr
oce di z rt he
pt
oc edi
ie
l s t n a ye r pror t t dae Ha ly Ka fl d hi i vi l pe ii . Se ond, t
es ha
a i o he t
re
ne ie s ndi dua tton
c
he

Pates i i a çn ie 'a d fn db Se to 1 1 31( oft U.. n nzty Co esn e
rn rhp s n ç sd r' s eie y cin 0 ( )A) he S Ba k p c d ic
i
i i a ge r lpa t rhi i whi h Ha ly Ka i a ge r lpa t r Se I r Fa rs N o.06ts
ne a rne s p n
c
re
ne s
ne a rne . e n e ri,

AP- 0 5 BGC, 0 8W L 48 03 9, t* 3 4 ( n r N. Al. e t 3 , 0 B (id n t a a
0 09
20
3 0 a 4 - 5 Ba k . D. a S p . 0 2 0 ) fn i g h t n
i vi lde o ' dic r e wasba r d due t hi c
ndi dua bt r s s ha g
re
o s onduc i a i i r spr vi ba pt y
t n n nsde ' e ous nknl c

p o e dng . Thr ,b t Pa t sa mi t a t ta se wa d n b Haly Ka wih t e
r c e i )2 id oh ri d t h t he rn fr s o e y re ne t h
6
e
pr ry of t Pa t r hi Se Appelan s Br,a 30; Appel e Br,a 33. Fi l t
ope t
he rne s p. e
l t . t
le s . t
naly, he
Bi pty Co tsde e m i ton t tHa l y Ka pai hi pe s
mknl c
ur' t r na i ha re
ne d s r onalr alesae txe i or rt
e t t a s n de o
hi r a de a Appelee i wel-uppored by t r c d. Opi on,a 51.s e a s Nov.1
nde nd ly
l s s ls
t
he e or
ni t , e lo
0,

2 1HrgTr, t6 3( No 2 2 ) Ha lyKa ek e a o tted ly de fcie e so te
01 ' .a 6 ECF . - 3 . re n n w b u h ea e fe tv n s f h
dim is of t Pa t r hi s Cha e 11 Pr e ng a t pr bii n agans ma ng
s s al
he rne s p'
ptr
oc edi nd he ohi to
i t ki
diti tons t Appe lnt . As a e re e ato ney,Ha l Ka s s fs r i t si ony
srbu i o
la s
n xpe inc d tr
rey ne' el- e vng e tm

2 Th o l agz n Ap elnsp e e tdi t erI iilBre rg r n S cins7 ()7 a d
5 e ny rl t p l t rs n e n h i nta if e adig e to 27a( ) n
me
a
727()2)wast tt Bank pty Cour er be a eHaly Ka ta fre pr ryoft
a(
ha he
nl c
t red c us re ne r nserd ope t he
Pa t r hi a nothi o pr ry. Se Appel nt Br,a 30. As dic s s pr t s
rne s p nd
s wn ope t
e
la s . t
s us ed u a, hi
ag
r umenti con r r t t a ia e lw. Se e. ,I r Hoe e ,No.09- 04009,201 W L
s ta y o he pplc bl a
e c. n e
fr
AP0

1
658323,a * ( nkr E. Te Apr 23,2010 ;l r Lobel 390B. 206,218( nkr M .
t 6 Ba . D. x. .
) ne
l,
R.
Ba . D.
La.2008 . Addiinal Appela swai d alohe aglme sprs nt f t frttmei
)
to ly,
lnt ve l t r r l nt e e ed or he is i n
t i Re y rg r ig Se to s7 7 a( )a d 7 7 a ( . S e Da i v.Co acoa Bo tn Co.
her pl e a dn cin 2 ()7 n 2 ()2) e v s
c - l tl c
i
Cons . 51 F. 955,973 ( 1h Ci.2008)(tti wel s tl i t scic tt ta agume
ol, 6 3d
1t r
t s l eted n hi rui ha n r nt
l
noti l
ncuded i t a la ' ope ng bre i de med a
n he ppe lnts ni
if s e
bandone And pr en i t ar
d.
es tng he gume
nt

i t a la ' rpl doesnots how r urec i.)(ntr cttonsomit .
n he ppelnts e y
ome
es r tt' i enal iai
'
ted)
2 Se ton 1 ( )A)sd i ton ofGnsde'çi l s i t debori a i vi l ...(i
6 ci 0131( ' efnii
ç i r'çncude- f he t s n ndi duai
i)
(1p rn rhp i wh c te d bo i a g n r lp rne .. .. 1 U. C.j 1 ( )A)
a a tes i n ih h e tr s e ea a t r
' 1 S.
'
0131( .
Addii l Ha l y Kane was a i i r i t Pa t s p' Cha e 11 Pr ee ng.Se 11
tonaly, re
n nsde n he rnerhi s
pt r
oc di
e

U. C. 1 ( )C)(ni sd rçn l d s i t d b o i apate s i -i ()g n rl rn r
S. j 0131( a n i e t cu e- f he e t r s rn rhp- t) a e e a pate
i
oft de o ....)
he btr ' .
'
21

t the di notbei ve hi c
ha
d
le
s onduc wasvi ai oft Or r a t the a tmpt d t c r c
t
ol tve he de s nd ha
te e o ore t
t vi ai i uns
he olton s uppo td and i ufi e t r butAppe les dn
re
ns fcint o e
le ' magi e de . Se J n.
ng vi nce
e a

2 ,2 2 Hrg Tr,a 1 2 3 ( No.2 25 ;s e as Opn o ,a 2 (çlre Ka es
3 01 ' . t 1 4- 0 ECF
- ) e lo ii n t 0 ç- ly n '
la

tsi n wa t e o l e i e c ofee b te ( p l n s o t e e is e . l wa plil
etmo y s h ny v d n e f rd y h Ap el t) n h s su s t s any
a
fbrcae ' The ove whel ng evi nce de taes t tHaly Ka kne t tupon
a i td.
).
r mi
de
monsrt ha re ne w ha
dimis loft Pm ne s p' Cha e 11Pr e ng,Appel e woul i m e a ey ga n s t
s sa
he
rhi s pt r
oce di
le s
d m dit l r ih he

Pm ne s p' ope a i a ot a t t Ha ly Ka t
r hi s
r tng cc mt nd ha
re
ne ook a va a of t delye
d nt ge
he
a d
e f c i ne s ofdim is t pa hi pe s l no di c r a e o i tons Se Opi on,a
fe tve s
s s al o y s r ona , n- s ha ge bl blgai .
e
ni t
20-21 Si y put Ha ly Ka ca e t Pa t r hi t pay hi r a e tt t s i or rt
. mpl
, re
ne us d he rne s p o
s e l sa e axe n de o
hi r dea a de r ud t a lt ofAppelee t c lc ascr dior t rt St t Co t
nde , ly, nd fa he biiy
l s o ole t
e t s mde he ae ur
J
udgme . Ac or ngl t s Cour fnds t t t Ba
nt
c di y, hi
t i
ha he nknmt y Cour di not e r whe i
c
t d
r
n t

de e mi t tHa ly Ka s dic r s d be ba r d pur ua t vi a i of Seci
t r ned ha re
ne' s ha ge houl
re
s nt o oltons
tons

7 ()7 a d 7 7 a ()2
27a( ) n 2 ()2 .7

2 I a fr i t Ba upt y Co ts de e na i t t Ha l y K a s di c r e i ba r d
7 n f im ng he nkr c
ur ' t nni ton ha
re
ne' s ha g s r e

purua t Se tons 7 ()7 a 727()2) t s Cour de i t a es t Ba pty
s nt o ci 27a( ) nd
a( , hi
t clnes o ddr s he nknl c
Cour' nzi t thi dichagecoul as be bar puruan t Secin 727()6) Se l r
ts lng ha s s r
d lo
red s t o to
a( . e n e
M c nne No.1 AP- 7,201 W L 1
Ki y,
0- 0601
2
030445 a * ( nkm S. Ga.M a .5,201 (ç
, t 4 Ba . D.
r
2) t
A
fndi agans t de orunde a ones e ton ofj727()i as fce gr mdf de al
i ng i t he bt
r ny
ubs ci
a s ufiint ot or ni
o t eds h r e' ( uoigI r Pr ts 3 2F d Ap x a 9 2 3 .
f h ic ag .) q tn n e oo , 2 e . p' t 3 -3 )
'
22

CONCLUSI
ON

Ac r ngl t Ba
co di y, he nknpt y Cour' Fi lJ m e a M e or ndum Opi on,whih
c
ts na udg nt nd m a
ni
c
we e e e e by t Ba nl t y Cou ton M a 1 201 a e he eby AFFI ED . The Clr of
r nt r d
he nk p c
r
y 0, 2, r r
RM
ek

t Cour i i tuce t CLOSE t sc e.A1 pe ng motonsa eDENI AS M OOT.
he
t s nsr t d o
hi as
1 ndi
i
r
ED

DO A OR E E iCa est a ,lrati/ YdyoJnay21.
NE ND D R D n hmbraMi Foi ,hsz a faur,03
mi d
p
.

f

K.M I
CHAEL M OORE
UNI
TED STATES DI
STRI J
CT UDGE
Al c ms lofr or
1 ot e
ec d

23