Crossroads Equity Partners, LLC v. Dogmatic Products, Inc. et al
Filing
72
MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 07/22/2014. (ssm)
CLERKSOFFI U. DI .
CE S. ST COU;T
I THE UN I
N
TED STATES D I
STRI COUR T
CT
FOR TH E W ESTERN DI
STRI O F V I I A
CT
RG NI
CHA RLO TTESV I
LLE D I I ON
V SI
AR,nE,((,
TO1o V ik
AO A .
.K
u
N
L
JUL 22 2 1
24
JULA C
I
DL CL EX E
BY:
CL
ER
CROSSROADSEQUI PARTNERS,LLC,
TY
a V igi a Li ie Li biiy Com pa
r ni m t d a lt
ny,
Pl ntf ,
ai i f
Ci lA c i N o.3: CV00069
vi ton
11
M EM O R AN DU M O PINION
D O GM A TI PROD U CTS,l C . etal,
C
N ,
.
By:H on.G l E.Conrad
en
Chi fUnie St t D it i tJ
e
t d a es s rc udge
Dee ns
f nda t .
Thi ca e i pr e l be or t c r on t m oton f a t r ys f e a e ns sf l d
s s s es nty f e he ou t he
i or to ne ' e s nd xpe e ie
byt pl ntf, osr EquiyPa t s LLC ($ '. Fort f l ngr a ons t moi
he ai ifCr soads t rner,
;
CEP')
he olowi e s ,he ton
w ilbe gr ed.
l
ant
Backtround
OnDe e r1 201 CEP l ne Dog tcPr t,l .(d ' $1 000. The
c mbe 3, 0,
oa d mai oducs nc ( ' 50, 00.
DP1)
l ni e de e byaPr mis r Not (hei e',a s c edby a Unc tona Guaany
oa s vi nc d
o so y e t t ' nd e ur
Not )
n ondii l r t
(heç rnt 'pr de byRe dsE. o t Ila M a aW oodwadMoulon.
t ç a y' ovi d
Gua
)
ynol M ulon, 1 nd ur
r
t
O n O c obe 21 2011, l rD PIf ie t m a pa e sr quied unde t N ot CEP
t r ,
afe
a l d o ke ym nt e r
r he e,
f l d s ta i tD Pla t M o t f rbr a h oft N ot a G ua a y. The de e nt
ie ui ga ns
nd he ulons o e c
he
e nd
r nt
f nda s
e nt ly r t i c
ve ua l e a ned ouns lt r pr s ntt m i conne ton w ih t c ai sbr
e o e e e he n
ci
t he l m
oughtby CEP.
t a we stld by c ns lt de e
he ns r ie
ou e ,he f ndan sa it dt tDPlha notm a pa e sr uie by
t dm te ha
d
de ym nt eq r d
t N ot ;t tCEP had de a d pa e ofa ls sunde t not a t tD Plhad no pa d
he
e ha
m nde ym nt l um
r he e nd ha
t i
s s s;and t a s antalsum wasdue undert N ot and Guar y.
uch um
hat ubst i
he e
ant
Rel ng on t def
yi
he endant adm i onsand a decl aton f om Charl Lunsf d,isowner
s'
ssi
ar i r
es
or t
a ma r CEPmove f s
nd nage,
d or ummayj
r udgme onM ac 1 201 OnAprl26,201 ha ng
nt
rh 4, 2.
i
2, vi
r c ve no bre i opposton fom t de e nt a no f t rr quessf ra e e i of
e ei d
if n
ii r he f nda s nd urhe e t o n xt nson
tme CEP fldar uetf e r ofs
i ,
ie eq s or nty ummayj
r udgme i isfvo . Theco te e e afna
nt n t a r
ur ntr d i l
o d rg a tn CEP' moi nf rs mmayj d me to M a 8 2 2
r e rn ig
S to o u r u g n n y , 01 .
Exa l one yea l t r t de e
dy
r a e , he f ndan s afe r t ni ne c
t , t r e ai ng w ouns l f l d a m o i f r le
e , ie
ton or e i f
fom t fna ode, s ntt Rul 60( oft Fe r Rul ofCi lPr ed e Theco t
r he i l r rpurua o e b) he deal es
vi oc ur .
ur
hedaheai ont Rul 60( motononNove r4, 3, Att concusonoft he rng,
l
rng he e b) i
mbe 201
he l i
he ai
t def nda sr ques e l a t tl a de a a i orot revi nce i s
he e nt e
t d e ve o i e
cl r ton
he
de
n uppor oft i m o i
t he r ton.
By or e e e N ove be 6,201 t c tg a t d t de e nt 'r ques and ga t m t n
der nt r d
m r
3, he our r n e he f nda s e
t
ve he e
da t s i addii le de e. The e f e , he d e nt fl d a s ve e n- ge dec a a i n
ys o ubm t
tona vi nc
r a t r t ef nda s ie e nt e pa
l r to
f om M r M oulon a ong w ih f r y-w o pa ofe bis CEP s e nty r quesed a
r
.
t l
t ot t
ges xhi t .
ubs que l e
t nd
obt i d l ve t de e M r M o t
a ne ea o pos
. ulon. Folowi t co uc ofM r M o t sde ii CEP
l ng he nd t
. ulon' pos ton,
t l d a s e e al e pons on Dec m be 1 201 By opi on a or re e e Fe ua y 1
i e uppl m nt r s
e
e r 2, 3.
ni nd de nt r d br r 9,
201 t c tde e t def nda s m oton.
4, he our ni d he e nt ' i
O n M a c 5,201 CEP t l d t i t ntm o i n s e ng t r c ra t ne f esa
rh
4,
i e he ns a
t o e ki o e ove tor ys' e nd
e ns si uredi opposngt Rul 60( moton. Thematrhasbe f l bree a i
xpe e nc r n
i he e b) i
te
en uly ifd nd s
rpe f deci on. 1
i or
si
Di cuss on
s i
1.
At ornevs'Fees
t
The a ia lt ofat r ys f si adi r iy a ton i ge r ly go r d by sa el w.
val biiy to ne ' ee n ve st c i s ne al ve ne
tt a
$e Hia hiCr diAm.Cor v. g tBa 1 F.d61 631( hCi.1 (ii Cul rs n
e tc e t
p. Sine nk, 66 3 4, 4t r 999) ctng be to
v. ccalCoa Co.495F. 1 1 06( hCi.1 ) I Vigi a coursa r t ûhe
M l l ,
2d 403, 405- 4t r 974). n r nis t dhee o '
t
s c ledç rca Rul 'g erwhihqaprvaii paryge r lyc nnotrc at ne '
o-al Amei n e, und
c
e lng t ne al a
e over tor ys
1Neihe sder quese ahe i on t moton f a t neys f esa expe e .
t r i e td
arng he i or tor ' e nd
ns s
2
fesfom t l i pa t '' Dewber & Da s l v.C3 l ,732 S. 2d239,243(
e r he osng ry.'
rv
vi.nc.
NSS nc.
E.
Va.
201 ( i Uloav.QSP.l .624S. 2d43,49( 2006). Sl sr e howe ,doe no
2) quotng l
nc,
E.
Va.
) d- ul,
-hi
ver s t
pr vent ri st a c r c f om a i pr s onst ts f t r s
e
pa te o ont a t r
doptng ovi i ha hi t he e pons biiy ofa t ne 'f s
i lt
tor ys ee
t t l i g pa t i diput i vi t con r c a' I
o he os n ry n s es nvol ng he t a t' d.
l t s c e, h t N ot a t G ua a y s k t a t ne 'f s a e ns . The
n hi as bot he e nd he
r nt pea o tor ys ee nd xpe es
N ot pr de t tDP1Cwilpay a1 r s na e cos sa e ns s i udi r as
e ovi s ha
k l
1 ea o bl
t nd xpe e , ncl ng e onabl
e
at ney' fes i uredby L
tor s e ,nc r
CEPIi (
f CEP)i taess tf t pur eofcolecin oft s
niit ui or he pos
l to hi
Pr i s y N ot ' N o e a 2,D oc tN o.1 2. Si ia l t Gua a y pr de t tM r a
om s or
e.
' t t
ke
m l ry, he
r nt ovi s ha
. nd
M r . oulon m us pa C l c t a e
sM t
t y ç l os s nd xpens ,i udi r as bl a t ne 'f s whi h m a
a
es ncl ng e ona e tor ys ee , c
y
be i ur e i s e s uly e or ng t pa e ofa n o ort pe f m a e ofa
nc r d n ucc s f l nf ci he ym nt ny m unt he r or nc
ny
O blg ton ort s Gua a y. G ua a y a 1, oc tN o.1 3. Undert pl i m e ng oft e
iai
hi
r nt '
'
r nt t D ke
he a n ani
hes
c r t pr s o ,CEP i entte t a a a d ofr as bl f esa e ns s i ured i
ontac ual ovi i ns
s il d o n w r
e ona e e nd xpe e nc r n
c n u to wihisc niu def rst c l c tepa me t d eu d r h No ea dt e
o j nci n t t o t e fo t o ol t h y n s u n e t e t n h
n
e
G uar y.
ant
To pr r y c c a e a r as bl f e aw a d,t cou tm us det r i t a oprat
ope l al ul t e ona e e
r he r
t e m ne he ppr i e
l t fg e. McAf v. za,7 F.d81 88( hCi. 3) Thi fg ei dee ne by
odesar iur
ee Boc r 38 3 , 4t r 201 . s iur s tnui d
muli yi t numbe ofhour r s bl e
tpl ng he
r
s ea ona y xpende byaras
d
e onabl houryrt. J. To
e
l ae J
.
as r a n wha i r s bl i t r sofholr e nde a r t c r d,t coul co i r t
ce t i
t s ea ona e n e m
zs xpe d nd a es ha ge he
' ns de s he
t
fcor s tf t i J onv.Geor aHi yExpr s l ,488F. 71 (t Ci.1974 (he
a t s e orh n ohns
gi ghwa
es,nc.
2d 4 5h r
)t
k ohns f cor' . 1 ;seas Robi onv.Equia I o. r .LLC,560F. 235, ( h
k on a t s' d. e lo
l
)
ns
fx nf Sevss
3d
243 4t
Ci.2009)(tnde di wha c tt e ate ona e'n
r
i ci ng t onsiuts ras bl umbe ofho sa rt ,weha
l
r
ur nd aes
ve
i tucedt tadititc sdicei s dbegui byt (ohns fcor.) Thos
nsr t ha src ouM' s rton houl
ded he J onl a t s' .
'
e
f or ar as f l vs:
act s e olos
( )Thetmea lbore nde ( t no ly a difc t oft quesi
1
i nd a xpe d;2) he vet nd f uly he tons
r s d;3)t s l rquie t pr rype f m t lgals r iesrnd r d;4)t
aie ( he kil e rd o opel ror he e e vc e e e ( he
at ney'opporuniycossi prsi t i tntltgai ( )t c t r fe
tor s
t t t n e sng he nsa ii ton; 5 he usomay e
f lkewor ( t at ne se cai a t oute oft ltgai ( t
or i
k;6) he tor y' xpe ttons t he st he ii ton; 7) he
tmelmiainsi e byt cintorcic t es ( )t a
i i tto mpos d he le
rumsanc ; 8 he moun i
tn
co r rya t rs t obti d;( t e re ,rputton,a a lt of
ntoves nd he e uls ane 9) he xpe ince e ai nd biiy
t at ne ( 0)t undesr biiyoft ca ewihi t l lcommuniyi
he tor y; 1 he
ia lt he s t n he ega
t n
whiht s tar e ( 1 t naur andlngt oft pr e sona r ltons p
c he ui os ; 1 ) he t e
e h he ofsi l eai hi
bewe nat
t e tonwya cint a ( 2)atnwys f e a dsi smia ca e .
nd le ; nd 1 to
' e s war n i lr s s
M cA f 738 F. at88 n.
ee,
3d
5.
I t sc s ,CEP s e r m bur e ntf r$ 660. i at r ys f sa e ns .
n hi a e
e ks ei s me o 26, 06 n to ne ' ee nd xpe es
Thi fg ei l $24, 0.0 i at r ys f esf 76. hour o wor whi hwasmosl bild
s i ur ncudes
81 0 n to ne ' e or 6
s f k, c
ty le
a or , he our fnds ha he
a t r t of$3 0 pe hour2 A ppl i t r l ntJohnson f ct s t c t i t tt
t he a e
25.0 r
.
y ng he e eva
r
eques ed f are r onabl
t ees
eas
e.
To s
uppor isf e r que t CEP pr ded de a l d r co dsdoc e i t tm e a l bor
tt e e s,
ovi
t ie e r
um ntng he i nd a
e p n e o isb h l. Thevatmao i o tmewa ble b s no a s caeJP. c ie
x e d d n t e af
s j rt f i
y
s ild y e ir so it . M Gur
xpe d ot l
Boyd,J . M r Boyd e nde a t a of73.3 hour w or ng on t c s a t rt de enda sf l d
r3
.
s ki
he a e f e he f
nt ie
t rRul 60( moto i M a of201 Thi i l edtmerviwi a a l ngt
hei e b) in n y
3. s ncud i e e ng nd nayzi he
de e nt moton a s
f nda s' i nd uppori me a m ' es ar hi t l lis sr iedby t
tng mor ndu , e c ng he ega s ue a s
r
he
de e nt ;pr rng a i talopposton m em or ndum ; e rng f a a t ndi t
f nda s epa i n nii
ii
a
pr pa i or nd te ng he
N ove be 4,201 he r ng on t def nda s m oton;r vi w i a a l i t dec a a i
m r
3 ai
he e nt ' i e e ng nd na yz ng he l r ton
a e biss eque l s it d by t de e nt ; e i f a a t ndi t de ii
nd xhi t ubs
nty ubm te
he f nda s pr parng or nd te ng he poston
ofM r M oulon; e rng a r pons t M r M o t sde l r ton;and pr rng t i t nt
.
t pr pa i
es
e o . ulon' c a a i
epa i he ns a
motonf at ne 'fesa e ns s Thec trj cst dee nt agumentt tt
i or tor ys e nd xpe e .
our ee t he fnda s' r
ha he
2CEP wasr es ed byator ysfom t lw tr ofW ilamsM ule . CEP s ksr m burem ent
epr ent
t ne r he a im
li
ln
ee ei
s
f wor peror e by t parner ,as oras ocit andt eepar l s The parner bil acombi
or k f m d wo t s eni s ae,
hr
aegal.
t s led
ned
t alof14hour ofwor a r esof$425. and $460. r peci y. Thes ni a s at c r an houry
ot
.
s
k t at
00
00, es tvel
e or s oci e ha ged
l
r t of$325. The pa algal c r d an houry rt of$1 00.
ae
00.
r e s ha ge
l ae
90.
3 M r Boyd i now apa t ratW ilamsM ule
.
s
rne
li
ln.
4
a ountoftm e e nd by M r Boyd w a e es i ,a i t a fndst ti w ase i e y
m
i xpe ed
.
s xc s ve nd ns e d i
ha t
ntr l
r s bl i lg oft dee nt'tna ousef ' t va at t j
eaona e n iht he fnda s e ci fols o c e he udgme entr agans
t
nt eed i t
t m. Se W et Co. M H W ahi t 631F. 51 530( t Ci.2011 (; pa t ca
he
e iz v.
s ngon,
3d 0,
8h r
) t ry nnot
A
ltga e t nac ous y a t n be he r t c pl n a
ii t e i l nd he
a d o om ai boutt tm e ne es a iy s n ove c i is
he i
c s r l pe t r om ng t
vi r def e.'(ntr cttona quoai maksomit )
goous ens ' i enal iai nd tton r
)
ted .
The c t s fndst tCEP pr
our al o i ha
oduce s tci nte de e t esabls t r a ona e s
d ufi e vi nc o t i h he e s bl ne s
ofM r Boyd' $ 00ho l r t I a or ncewih e si pr ce nt CEP s i e a
,
s 325.
ury ae. n cc da
t xitng e de ,
ubm t d n
l
a fda tf om a l a a t ne J m esW .Ba kl y, o s
f i vi r
oc l tor y, a
r e t uppor is f e r ques . See M c e ,738
tt e e
t
Af e
F. a 91(' f a ia i oblgedt s w t tt r se houryrt ar c itntwih
3d t ; ee pplc nt s i o ho ha he eque td
A
l aes e onsse t
t pr valngmake rt i t r e ntc
he e ii
r t aes n he elva ommuniyfrt tpeofwor f whih ghe
t o he y
k or c t
a ia ls e a awa d. Thee denc weha de medc tntt s prvalngmake
pplc nt e ks n r
vi e
ve e
ompee o how e ii
r t
rt i l
a es nc udesaf i vis ofot r l all w ye s who a e f m ii rbo h w ih t s lsoft f e
fda t
he oc a r
r a la t t he kil
he e
a ia sa mor ge rlywiht t ofwor i t r e ntc
pplc nt nd e neal t he ype
k n he elva ommt t ')(ntr lctton
miy. i ena iai
'
a quotto maksomit . I t d lrton,Mr Baklyi c tst thei fmiirwih
nd
ain r
ted) n he ecaai
. r e ndiae ha s a la t
t l gals r e pe f r e i t s c s ,M r Boyd' ed a i lbac ound a e re ,a
he e
e vi es r o m d n hi a e .
s uc tona
kgr
nd xpe i nce nd
t hour y r t c r by a t r
he
l a es ha ged
t o neysi t r o wih c pa a e kno l dge, xpe i nc ,a
n he egi n t om r bl
w e
e re e nd
e r i e. The dec a a i c i m st tt houry r t c r d by M r Boyd i r s na e a
xpe ts
l r ton ontr ha he
l a e ha ge
.
s ea o bl nd
c i t ntwih t houry r t s c r d by ator ysa ot r1 w tr s wih c pa a e
ons s e
t he
l a e ha ge
t ne nd he a i m
t om r bl
know l ,c pe e y, nd expe i e i t sr on.
edge om t nc a
renc n hi egi
A lhough t de e nt c t nd t tM r Boy shoury r t i exc s i t y of e no
t
he f nda s on e ha . d'
l a e s e s ve, he f r
evi
dence t r ut M r.Bar ey' decl aton,and i ead ques i t ext ofM r Boyd'
o ef e
kl s
ar i
nst
ton he ent
.
s
experence i f alcourt H owever abasi Lexi sear r
i
n eder
.
,
c
s ch eveal over20 f alcasesi w hi
s
eder
n
ch
M r Boyd w as i iied as couns ofr
.
dentt
el ecord,and basi PA CER sear
c
chesr
evealnum er ot
ous hers
t tdi notg r t publs o ni . The c ti co nc t tM r Boyd' f de a
ha d
ene a e
ihed pi ons
our s nvi ed ha
.
s e rl
ltga i e re w e g i f vo ofa a di hi r quesed f e, do t qua iy ofhi l ga
ii ton xpe i nce i hs n a r w r ng s e
t e as he lt
se l
w o k a t r s t he obt i d f hi cle . M or ove , r Boyd' houry r t i no i e s
r nd he e uls
a ne or s i nt
e rM .
s
l a e s t n xce s
oft e a o d i ot rr c ntf de a c e i vi a t ne w ih s m iarexpe i nc Se
hos ppr ve n he e e e r l as s nvol ng tor ys t i l
r e e. e,
eg.M c e 738F. a 91( vi de ee et t dititc tsdeemi tont tt
. , Afe,
3d t gi ng f rnc o he src our' tr nai ha he
$365. hou l rt bildbyasni a s aewasr s bll Ba rv.CounyofFr rck,
00 ry ae le
e or socit
eaona e ; be
t
edei
No.5:2CV037, 3U. DitLEXI 1 253, t*5n. ( . Va. une21 201 )(i ngt t
1
201 S. s.
S 01 a
1 W D. J
, 3 tndi ha
t $325.0houryr t c r by as ora s aewa r s bl .
he
0
l ae haged
eni socit s eaona e)
Fora loft e r as , he c r fndst tt tm e e nde a r t sc r d by c
1 hes e ons t ou t i ha he i xpe d nd a e ha ge
ouns
el
w e e r s bl ,a t tt r l va tJ m s f t s s
r ea ona e nd ha he e e n ol on ac or uppor t nm ountc a m e Acc di y,
t he
l i d.
or ngl
t co twilg a tCEP' r ques f at ne 'f esi t a ou of$24, I OO.
he ur l r n
S e t or tor ys e n he m nt
8 O.
l1.
E xpens
es
CEP as s e r i bur e ntf r$1850. i ltgai n e ns s. Thi fgur
lo e ks em s me o , 06 n ii to xpe e
si e
e om pa s l l es a c f es c t e tng f es and m i c i ra t a e ns s The
nc
s es ega r e r h e , our r pori e ,
nor our e nd r vel xpe e .
d fn a t ha en trie a ys e ii o j cin t ter q se e pe s s Th c u tidsta
ee d ns v o as d n p cfc b e to s o h e uetd x n e . e o r fn h t
t e ns sw e e r as bl i ur ed,a t tCEP i e il d t r i bur em e u rt
he xpe e r e ona y nc r
nd ha
s ntte o e m s nt nde he
a i bl pr s ons oft pari 'ag ee e s
pplca e ovi i
he tes r m nt .
Concl on
usi
Fort r s sa e CEP' m oto f a t ne 'f e a e
he ea ons t t d,
S i n or tor ys e s nd xpens sw ilbe g a e a
e l
r nt d, nd
CEP wilbe a r d f esa e ns si t t t a
l
wa de e nd xpe e n he o al mountof$ 660. The Clr i die t d
26, 06.
ek s r ee
t s copi oft s m em or
o end
es hi
andum opi on and accom panyi or t a1 couns ofrecor
ni
ng der o 1
el
d.
a tl y 01
Ex-sR.'hi Ja* d yo-ul, 2 4.
r :r s
Chi U nied St esD i r ctJudge
ef t
at
sti
6
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