Whalen v. Rutherford et al

Filing 70

MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 6/21/2013. (lab)

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ATMOAMOKE,
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M EM O M N DU M O PINIO N

JA M ES LA RRY RUTHERFO RD ,

By: on.G l n E.
H
e
Conr
ad
Chi fUnie St t s Di t i tJ
e
t d a e s rc udge

De enda .
f
nt

Thi dv ri a to i p e e t b fr tec u t nmoinsf rs mmayj d me tfld
s iest cin s r s nl eo e h o r O t o u r u g n i
y
y
o
e
bydefnda sJ me Lar Rut rod(û ut ror 'a ShelyDa elRut ror (i nil'.
e nt a s ry hef r dl hef d' nd le ni
l
)
he f d çDa e'
)
Fort r as s tf t bel Rut f d' m o i wilbegr nt di pa4 a de e i pa ta
he e ons e orh ow, heror s ton l
a e n l nd nid n r, nd
Da e ' m oton w ilbe gr nt d.
ni l s i
l
a e
Sum m arv oft Faet
he
s

The f l w i f ct a e pr s nt i t lg m os f vor bl t t pl i if J c i M .
olo ng a s r e e ed n he i ht t a a e o he a ntf , a quelne

W haln. Se Andes v.Li ryLobby,l ,477U. 242, ( 986 ( i t ta1 vi nc
e
e
ron bet
nc,
S. 255 1 ) notng ha 1e de e

mu tb c nsr e i tel h mo tfv rbet tep ryo p sngs mmayj dg n)
s e o tu d n h i t s a o a l o h a t p o i u r u me t.
g
W hae r sde onafr i NelonCo y, r i a(he' o t '. Sheme
ln e i s
am n s
unt Vigni t s pery'
pr
l
t
Rut r or a Fl i r s de ,i 1
he f d, or da e i nt n 977,a t y bec m e r m a i a l i ve i 1 3.
nd he
a
o ntc ly nvol d n 98

Alho h Rut ror pr e ma raget W hae i 1 a W haln a e edhi pr a, he
t ug
he f d opos d ri o
ln n 986 nd
e cc pt s opos lt
c
oupl ne m a e How e r t y m a nt i a i i a e r l tons p f ove t e t ye r .
e ver ni d.
ve , he
i a ned n ntm t e a i hi or r w n y a s
I 1
n 985,W ha en and Rut r or e e ed i o a bus ne sr a i ns p t tt y ca l d W & R
l
he f d nt r nt
i s el to hi ha he le

Pat rhi (he( rnes p' . Thepur eoft Pa t s pwast S onduc t busnes of
rnes p t k t rhi '
pa
)
pos he rnerhi
ok
c
t he i s
ma ngahoref r a ho s bre ngopeai ' t Prpet ( rne s pAgee nta
nagi
s am nd re e di
rton'on he o ry. Pa t rhi r me t
The Pa t r hi A gr e e pr de t tW ha e w o d be t i a ng pa t r' a t
rne s p
e m nt ovi d ha
l n ul
he s nagi
m
rne , nd hat
'

s woul i ec vefom t pa t rhi as a y c
he
d d ei r he rne s p alr omme ur t wih he tm e e f ta e rie
r
ns a e t r i , for nd xpe ts

c rbutdt t busne s' (d a 2. ThePa t s pAgre ntfrhe pr de t tt
onti e o he i s . L=.t )
'
rnerhi e me ' t r ovi d ha he
u
s lr woul beS tr ne fom tmet tmebyW hae a Rut ror ' (d.
aay
d i emi d r i o i
de
ln nd hef d. I )
'
l t 1
n he 990s W hal n a Rut r or be n di c s ng t po s biiy t Rut r or
,
e nd he f d ga s us i he s i lt hat he f d
w oul m ove t V igi a and lve w ih W ha e The a s di c s d buidi a l r rhom e on t
d
o r ni
i
t
l n.
y l o s us e
l ng a ge
he
Pr ry. Rut f r w asoft opi on t t e s i hous w a t s a l a he di no
ope t
her o d
he ni hat he xitng
e s oo m l, nd
d t

wa t k t r unls i wasbi r' ( herodDe a 58. Si eRut rodwasgoi t
nt o k hee e s t
be
gge . Rut fr p. t ) nc he fr
'
ng o

fna et c tu tonoft ne hous,Whalngrntdhi aj nttna yi e eti t
i nc he onsr ci
he w
e
e a e m oi e nc ntr s n he
Pr pe t The de d ofgi tw a sgne by W ha e on A ug t 1 20
o ry.
e
f si d
ln
us 2, 03.
The c t uc i oft new hous w a tna e by a m o t ge l n i t a oun of
ons r ton he
e s i nc d
r ga oa n he m
t

$1470, 00. Thel an wass c e by ade d oftus on t Pr ry,whih wa sg d by
, 000.
o
e ur d
e
r t he ope t
c s ine
Ru he f d on N ove be 1 2007,a by W ha e o N ove be 24,2007, By s g ng t de
t r or
m r 9,
nd
ln n
m r
i ni he ed
oft s , he f d r pr e e t the w oul oc upy a us t Pr t ashi prnc pa
nl t Rut r or e es nt d ha
d c
nd e he opery
s i i l

r i nc f a l s aye r ( edofTnltat!6. Ruhef das rpr s nt onanotrz d
esde e or t eat a . De
s
) t ror lo e e e ed
aie
borowe c riiai t the'ntnde t occ s dpr ryas( s prmayr i nc wihi
r r e tfc ton ha t e d o upy ai ope t hil i r esde e t n
i
60da ofl ncl i orc ei ofac tuci pema ntl n. ( ComplEx. )
ys oa osng omplton
onsr ton r ne oa ' Am.
'
. F.
Pr o t e utng t de oft us ,Ru he f d de i ed t ti w asne s a y t d a t
i r o xec i he ed r t t r or c d ha t
ce s r o r f an

a e me k r i t us oft Prpe t ' ( heror De a 68. Rut ror diece
gre nti ngng) he e he o ry. Rut f d p. t ) hef d r td
gove
'
lo
e hi te or m
hi em pl
s
oyee,Jody Bakes, t handl t sm a l rf hi .

OnNove r20,
mbe 2007,Rut ror sg a a ee ntr r ngt Pr ry(heûFis
hef d ined n gr me egadi he ope t t û rt
Ag e me )whihwa drfedbya al neyi Fl i TheFis Agre ntpr de
r e nf', c s at
n tor n orda.
rt e me ovi d,

a ngohe t ngs t tRut ror woul d rs i ef ()t pa nt dueont
mo t r hi ,ha hef d
d b e ponsbl or i he yme s
be
he

Durn hi d posto Rute f r i n i e Ba e a hsC
ig s e iin, h ro d de tt d k s s i I ' ( t ro dDe a 68)
i
CFO. Ruhef r p. t .
'

M orgage (i i urnc ont Pr pet gndl(i)txe d o t Pr ry. ( rtAgre nt
t ; i) ns a e he o ry; a ii a s ue n he ope t ' Fis e me
'
a 2. TheFis Ag e me wa pr e e t W halni Vigi aonNovembe 27,
t )
rt r e nt s esntd o
e n r ni
r 2007, nds
a he

sgne is jctt t deltonoft eg hpaa a whihr rdhe t t i anpr ry
i d t ube o he ei
he iht rgrph, c equie r o i nti opet
ma
andc s lyi urnceont Pr ryf isf lrplc mentcos. (d.
a uat ns a
he opet or t ul e a e
t' I )
'
OnN o mbe 30,
ve r 2007, he f dexe ut d as c ag ee ntr ga di t Pr ry
Rut ror
c e e ond r me e r ng he ope t

(helse ond Agr me ' . Unlket Fis Agre ntt Se
t lc
ee nt'
)
i he rt e me ,he condAg e me di no rquie
r e nt d t e r
Rut r or t m a t pa e sdue o t m or g ort pr r y t x pay e s l t a i
he f d o ke he ym nt
n he
t age he ope t a
m nt . ns e d t
pr d t tW hal n woul m a t m o t ge, ns a e, nd t x pa ent , nd t Ru he f d
ovi ed ha
e
d ke he r ga i ur nc a a ym s a hat t r or
w oul be r ponsi e f r m bur ng her
d
es
bl or ei
si
.

W ha e sgned t l s pa oft Sec A gr em e o D e m be 3,2007. A c or ng
ln i
he a t ge he ond
e nt n ce r
c di

t W haen,J Ba sc le he a 4: 5 i t a tr n a advie he t tC hec
o
l ody ke al d r t 1 n he fe noo nd
s d r ha i hange 'ha
t
s' d

be nma t t agre nt ( halnDe a 67) Ba se
e de o he e me . W e p. t . ke mphasz dt tWhae nee dt
ie ha
ln de o
s gn ' he l tpa ' be or t l ala t ne sofi e c os a t ti W hal n idi tdo i,t
i k as ge ' f e he oc tor y' t c l ed, nd ha f
t
e k dn'
t he

not wa goi t e r a t ywo dha t sa to a i ' (d. W hae a ve a t
e s ng o xpie nd he ul ve o tr ver gan. l )
'
ln ni d t he
a t y' of i tve m i e bef e t of i e cl e She s gne t l tpage oft Sec
tonw s fce i
nut s or he f c os d.
i d he as
he ond
A g e m e , hi w ast onl pa t ts w a s n. Bas d o Ba s r pr e a i n,
r e nt w ch
he y ge ha he s how
e n ke ' e es nt t o

W hae a s e t tt onl c ngewa t deeto oft pa a a t ts hadm a ke ou i
ln s um d ha he y ha
s he l i n he r gr ph ha he
r d tn
t Fis A gr e e . The a t lc nge t t Se nd A gr e e , hi h r quied he t m ake
he r t e m nt
c ua ha s o he co
e m nt w c e r
ro
t m o t ge,i tr nc a t x pa e s wer no di c os t he .
he r ga ns ta e, nd a ym nt , e t s l ed o r
Unbe
know ns t W ha en a t tm et tm e s s gne t de d oft s ,o he l n
to
l t he i he i he i d he e
nz t t r oa
d um e s a t Se
oc nt , nd he cond A g e m e t Rut r or ha bee m a e t anot rw om a f ne ry
r e n , he f d d n ni d o
he
n or a l
ei m ont
ght
hs. Rut or m ar i D ani on M ar 31,2007. W hal di notl n aboutt
herf d
red
el
ch
en d
ear
he
m arrage unt l2009.
i
i

Not t t ndi t tr oft Se ondAgr eme ,Rut ror c i d t ma t
wihsa ng he e ms he c
e nt he f d ontnue o ke he
m orgagepaym ent on t Pr t f om D ecem berof2007 unt lM ar of2010. I M ar of
t
s he opery r
i
ch
n
ch

20l Rut r o d sopped m a ng t m orga pa e sa a 1o he pa e st W hal n. The
0, he f r t
ki he
t ge ym nt nd l t r ym nt o
e
Pr pe t i now i f e l ur
o ry s
n or c os e.
ProceduralH i t
s orv

W ha en tl d t i t nta ton aga ns Ru he f d a D a elon J ne 29, 2012. l her
l i e he ns a c i
i t t r or nd ni
u
2 n
a e
m nded c pl i ,s a s r st f l i c a m sunde V igi a l w :f a e i e e
om a nt he s e t he olow ng l i
r r ni a r udul nt nduc m nt

byRut ror (
hef d CountI; e c ofqua ico rc b Rut ro d( unt1) bra ofc r tby
) br a h
s- nta t y he fr Co 14 e ch ontac

Rut ror ( t11;andt to i efrncewihc r tbyDa el(
hef d Coun 1)
orius ntree
t ontac
ni CountI .
V)
Rut ro d a Da elpr vi l move t dim ist a
he f r nd ni e ousy
d o s s he mende c
d ompli ,purua tt
ant s n o

Rul l b)6)oft Fe r lRulsofCi lPr e e. OnDe e r1 201 t c t nid
e 2( (
he de a e
vi oc dur
c mbe 3, 2,he our de e
t de e nt m oto .
he f nda s' i ns
Folo i t c pl ton ofdi c r Ru he f d a D a elm oved f r s m a y
l w ng he om e i
s ove y, t r or nd ni
o um r

j me . Thec t dahe i ont moi onJme3,
udg nt
our hel arng he tons l
2013. Themoinsha bee
to ve n
f l bref a a e rpe f r vi w .
uly i ed nd r i or e e
Standard ofR evi w
e

An a r o s mmayj g n i a p o rae'ftemo a t h wsta te ei n
wa d f u r ud me t s p r p it ç h v n s o h t h r s o
i
g n iedip t a t a y maeilfc a dt emo a ti e tte t j d me t samatro lw.
e un s u e s o n tra a t n h v n s n i d o u g n a
l
te f a '
'
F d R. v. 5 () l d tr nn wh t e t g a t mo infrs mma yj d me tt ec u t
e . Ci P. 6 a. n eemi ig eh r o r n a to o u r u g n ,h o r
m us vi w t r c d i t lgh m os f vor bl t t no m ova . Ande s 47 U . a 255.
t e he e or n he i t
t a a e o he nnt
r on, 7 S. t

Towihsa as
t tnd ummayj
r udgme moi t no mova mus pr es t en e de efom
nt ton,he n- nt t oduc ufki t vi nc r

2 Prort flng t i t nta i , W hal tl s tagai tRut f d and ot r i t Cic t
i o ii he ns a cton
en ied ui
ns
heror
he s n he r ui
Cour ofN elon Count Tha acton wasnon- uied on J y 3,201
t
s
y.
t i
s t
ul
2.
4

whc ar a o b e u yc u drtr av r it nhe fv r 1 a 2 8 S n l o yo
ih e s na l j r o l eu n e dc i r a o . d. t 4 . k cus r r
co
s c ai algai donots fc nordoesaS r s i il ofe de e'i s
pe ultve le tons
ufie,
mee cntla vi nc n uppor ofghe
t t
non- nts c s ' Thomps v.Poo cElc.
mova 'j a e.
'
on
tma e Powe Co.31 F. 645,649(t Ci.
r , 2 3d
4h r 2002)

( i Philpsv.
quotng li CSX Trns .l ,1 F. 285,287( hCi.1 ) l asesi a
a p. nc. 90 3d
4t r 999). n s sng
s mma yj
u r udgme moton,ac ti e ildt co i ronl t e de et twoul be
nt i
our s ntte o nsde y he vi nc ha
d
a i sbl a t i l Se M a yl nd H i hw a Contac or A s ' I v. a y a 933 F. 1
dm s i e t ra . e r a
g ys
r t s s ns nc. M r l nd,
2d 246,

1 ( hCi.1 )( i t td as ye de e,whih i i dmisbl a ti ,c nnotbe
251 4t r 991 notng ha k ra vi nc
he
c s na si e t ral a

c n iee o amo inf rs mmayj d me t'.
o sd r d n
to o u r u g n'
)
Di cuss on
s i

1
.

R ut ord' M oton f Sum m ary Judzm ent
herf s
i or

Rut r or i na ed i Count 1 I , nd IIoft a ende co pl nt I Count1 W ha e
he f d s m n
s , 1 a I he m
d m ai . n
,
ln
cl m s t tRut r or f audul nty i ce he t s g t Sec A g e m ent l Cou 1 ,
ai ha
he f d r
e l ndu d r o i n he ond r e
. n
nt 1
W hal n a s rs a cl i f br a h ofquas - nt a t r a e t Rut r or sf l e t m a
e s et
a m or e c
ico r c , el t d o he f d' aiur o ke
m orgagepa ent . l Count11 W hal n as e t a c a m f rbr c ofc r c ,ba e on
t
ym s n
1,
e s rs l i o ea h
onta t s d

Ru he f d' f l et m a mont ypa nt f s r c sr er d by W haen. Rut f dhas
t ror s aiur o ke
hl yme s or e vi e end e
l
heror

mo e f rs mmayj d me to al h e c u t, ihwil ea d e s di t l .
v d o u r u g n n 1tr e o n s whc l b d rs e n u'
n
A.

C ountI

l Cou 1 W haln cli st tRut ror fa e l i uc d he t sgnt Se
n
nt ,
e am ha
he f d r udul nty nd e r o i he cond
A g ee en ,whi h s fe r s
r m t
c hi t d e pons biiy f t m o t gepa e st W hal n. W ha e co e
i lt or he r ga
ym nt o
e
l n nt nds
t tRut r or i e i ly c nc l d t i m a e i lcha ,a t ts w o d notha s gne
ha
he f d nt ntona l o ea e h s t r a
nge nd ha he ul
ve i d
t Second A gr enti t change had been di osed.
he
eem
f he
scl

1.

A pplcabl Law
i e

U nde V igi a l w , hi h t pa te a e i c r lng, r ud i t i e e ofa
r r ni a w c he r i s gr e s ont oli f a n he nduc m nt
c r c i a gr
ont a t s ound f ran a ton f rda a s G e ge Robbe e htSe oodsl v. ail nd Br .
o
c i o m ge , or
rc
af
nc. M ta
os

Co.255S. 2d682,683( 1 ) a aprnci lma behedla ef t fau ofhi age .
,
E.
Va. 979, nd i pa y
l ibl or he r d
s nt
Se Spe v. ifn,372 S. 2d595,599( 1 ) Nai del .Co. Patron,33l
e nce Grfi
E.
Va. 988 ; tonwi ns v. te s
S. 2d490,493( .1 . Toprvalonacai f fa en i
E.
Va 985)
e i
l m or rudul t nduce t apli ifmus
men, antf t
pr t f l ngee t bycla a c nci e de $()afler e e ai ( ofa
ove he olowi lmens e r nd onvi ng vi nce:i1 as eprs ntton, 2)
maeilf t( ma i e i lya knowi y,( wihi e t milad,( r la ebyt
tra ac, 3) de ntntonal nd
ngl 4) t ntnt o se 5) einc
he
pa t mild,a ( rs tngda et t pa t mil ' Evauai Resa c Cop.v.
ry se nd 6) e uli mag o he ry sed.
'
l ton e r h

Alqui 439S. 2d387,390( 1 .
e n,
E.
Va. 994)
V igi al w ka s r c ze f a by om i son,s e i esca l d t o e m e .' Ba
r ni a û l o e ogni s r ud
s i om tm
le c nc al nt '' nk

ofMonte lv.Sine Bank,1 F. 81 827(t Ci.1 . TheSu e Co tofVigi a
ra
g t
93 3d 8,
4h r 999)
prme ur
r ni
ha hel t ti onc l e , he he a om pls by w or o co uc ,m a be t eq va e tofa
s d ha ' ea m nt w t r cc
c
i hed
d r nd t y he ui l n
f l e r e e a i bec us c
a s epr s nt ton, a e once l e al a i vol s d i r t nondi c os e des g d t
a m nt w ys n ve elbe a e
s l ur
i ne o
pr ve a herf om l r ng t t ut ' Spe ,372 S. 2d a 599. H o e r k he f iur t
e nt not r ea ni he r h.
'
nce
E. t
w ve , û a l e o
t
di c os i o m a i i ge r ly nota tona e a f a ul ntconc al e i t a e e of s e
s l e nf r ton s ne a l
c i bl s r ud e
e m nt n he bs nc
om
du y t di cl e. Ba ofM o r a ,1 F. a 8
t o s os '
' nk
nt e l 93 3d t 29. To pr e on a f a cl i ba e upon
oc ed
r ud a m s d
c ea m e , he Supr m e Cour ofV igi a hasç e r d e t ra aleg t o o evi nc ofa
onc l nt t
e
t
r ni
û qui e ihe n l a i n r de e
r
kno i a a delbe a e dec son nott di c os a m a e i f c . N or i v. ic l 495 S. 2d
w ng nd
i rt
ii
o sl e
t ral a t'
'
rs M t hel,
E.

8 81 ( 1 ) s as La r v.
09, 2 Va. 998; ee lo mbet Downt Gaa .I .553S. 2d71 71 18( .
own r/e nc,
E. 4, 7- Va
2001 .
)
A t o- a s a ut oflm ia i a i t c a m s f da a r uli f om faud. V a.
w ye r t t e i t ton pples o l i or m ges es tng r r

CodeAnn.j8. - A) Suc camsa cuewhenkhefa ...sds rdorbyt
01243( . h li c r
' rud i icovee
t
he
6

e rieofduedii nc ra ona y s dha bee dic r ' Va.
xecs
lge e e s bl houl ve n s oveed.
'
CodeAnn.j
8. - 1 . ûf elnguaget t e cs ofduedii nc r as bl s dha be n
01249( ) û' a
-h
by he xerie
lge e e ona y houl ve e

dico rd, asus di ...j8. - me (j ame ur ofpr nce a tviy, asi t
s vee ' e n
01249, ans such as e ude , ci t or sduiy,
asi pr ry t beexpe t d fom,a or narl e cie by,ar as bl a pr ntma
s ope l o
ce r
nd di iy xer s d
e ona e nd ude
n
unde t pa tc a c r um sa e .... STB M a ke i Co . Zola r ,393 S. 2d 394,
r he r i ul r i c t nc s
'
'
r tng p v. f gha i
E.

397( 990)(ntr lcttono te . dW hehe s hduedii nc hasbee e r s dmus be
1
i ena iai mitd) t t r uc
lge e
n xecie
t
as e t ne by a e m i ton oft f c sa c r um s a e uni t e c c s ' l
c r ai d
n xa na i
he a t nd ic t nc s que o a h a e. d.
'
2.

A nal s
ysi

A ppl ng t f e ng pr nc pl , he c tc l st tg ui i s ofm a e i f c
yi he or goi
i i es t our onc ude ha en ne s ues
t ral a t

p e ld t e tyo s mmayj d me to W h ln scam t a Ruh ro dfa d ln l id c d
rcu e he nr f u r u g n n ae ' li h t te f r r u ue ty n u e
he t s gn t Se ond A gr e e . A ss tf t a ve,Ru he f d i ta e t dr f i oft
r o i he c
e m nt
e or h bo
t r or nii t d he a tng he
a ee e a r c uie hi e pl e, ody Ba s t ha e t m a t f hi . Conss e w ih
gr m nt nd e r t d s m oye J
ke , o ndl he ter or m
i t nt t
W ha e su r t ndi t tRut r o d w oul f na et c t uc i oft ne ho e, he Fis
l n' nde s a ng ha
he f r
d i nc he ons r ton he w m t
rt
A gr e e , hi waspr s nt d t W hal n i N ove be of2007,pr d t tRu he f d
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m r
ovi ed ha t r or
w oul be r ponsbl f t m o t ge a t x pa en s W hal n s gne t Fis A g e m e t
d
es
i e or he r ga nd a ym t .
e i d he r t r e n

s jc t t deei ofpaa a eg ,whihrquie he t pa f mai e nc a
ube t o he lton
rgrph iht c e rd r o y or ntna e nd
i ur nc snc s di notha t c h fow t s ts y t e oblga i ns Les t n a wee
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s ha
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t
ln

G dn'doi,henoewa goi t e r a t ywoul ha t saroverag n. ( halnDe
t t tt t s ng o xpie nd he
di
d ve o t t
ai ' W e p.
'
a 67 (mpha i a d) W hae a veda t ator sofi fvemi e befr t ofie
t )e
ss dde .
ln ni t he t ney' fce i nuts o e he fc
c os d, a pr s nt d w ih t l s pa oft Sec Agr m e ,a s gne t pa
l e w s e e e t he a t ge he ond
ee nt nd i d hat ge.

U nbe
knowns t W hal n,t Sec A g ee e r q r d he t m a t m o t ge, ns a
to
e he ond r m nt e uie r o ke he r ga i ur nce,
a t x pa e s a t ,i pos eve gr a e fna a ob i tonst n t Fi s A g ee e .
nd a ym nt nd, hus m ed n e t r i nci l lga i ha he r t r m nt
Vi w i t r or i t lg m os f vor bl t W ha e t cour c l s t a
e ng he ec d n he i ht t a a e o
l n, he
t onc ude hat

r s bl ur co dtndt tRuhef dha ad yt dicos t mae ilc nge c t ne i
eaona ej y ul i ha t ror d ut o s l e he tra ha s onai d n
t Sec Agr m e ,a t thi Cnondicl ur w ast e va e ofa f a e a s r i of
he ond
ee nt nd ha s û
s os e
he qui l nt
r udul nt s e ton
a m a era f c ,kno i y m a wih i e t m i l a ' Spenc 372 S. 2d a 599. A st
t il a t
w ngl de t nt nt o s e d.
'
e,
E. t
he
U nied St t Cour ofA ppe s f rt Foul h Cic to e v i Ba ofM ontea ,s h d y
t
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ot i a tng upo t as um pton t tt f c doe note s , orC fone pa t t sac i
her s c i
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xi t' k
' i
ry ake tons
whi h di r t ot rpa t fom m a ng pr nti tg tons' Ba ofM ont e l 1 F, a
c ve t he he r y r
ki
ude nves i a i .
' nk
r a , 93 3d t

Hee ara o a l j r c u dtn t a t c a g r q rngW h lnt ma temo ta e
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ym n s nd ha he s c i n he s t o ha he ond r m nt s de i a o

t Fis A g ee nti t tr pe t a t tW haln' m itke bei t tt onl cha t t
he rt r me n ha es c ; nd ha
e s sa n lef ha he y nge o he
Se ond A gr e e w a t o t ts r ue t d w a i e by t r pr e a i nsm ade by
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Ruh ro d' a n . A r ao a ej r c udl e s tndt a t ed cso n t ods ls te
te fr s ge t
e s n bl u y o l i wie i h t h e iin o t ico e h
k
k
ng' a k i r t '
de
3
s
m a e i c ngest t Se
t ral ha
o he cond A gr e e w a i now i ' nd i lbe a e.' N oni ,495 S.E.
e m nt s i
2d
a 812.
t

l mo n f rs mmayj dg n o ti cam, t ef r ma smu ho tefc t a
n vig o u r u me t n h s li Ru h ro d ke c f h a t h t
W ha e di notr ques t s e t e i e Se
ln d
e
t o e he ntr cond A gr e e bef e s g ng t l tpa
e m nt or i ni he as ge. W hie a
l
3 The cour not t tt r d cont nsevi
t es ha he ecor
ai
dence ofot mir es a i and om isi by
her s epr ent tons
s ons
Rut f d. Ass
heror
umm a zed above Rut f d f l t dicl t thehad mar i Da el and,
ri
, heror aied o s ose ha
red ni ,
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olowi he
rage, i
oan
nt rtf ng ha
nt
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r i e. W hiet courtagr wih Rut f d t tt e a tonalm ir pr e atonsand om isi
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ees t
heror ha hes ddii
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ctonabl on t rown,t cour i oft opi on t ts e denc i pr i ofRut r or s
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t s he ni ha uch vi e s obatve
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i ent
nt .

pa t sf l e t r a a doc e ge r l doe notr le t pa t o he oblg tons t tr e
ry' aiur o e d
um nt ne aly s
e i ve he r y f r i a i , ha ul

l nota y ... r gheopposngpat i uc t ( ry)no t r di. Spe ,372
c
does ppl whee t
i ryq nd ed he pa t t o ea t'
' nce
S. 2da 599(ii Ca trv.Catr 2 S. 2d21 221( 1 2). I lg oft
E. t
ctng re
re , 91 E. 8, Va. 98 ) n iht he
r pr ent tonsm ade by Ru he f d' a nt t c r m s a esunde whi h W hal n w a a gua y
e es a i
t r or s ge , he icu t nc
r c
e
s r bl
pr s ur d t s gn t Sec A g ee e ,a t d r oftus t W hal n afor d Ru he f d
e s e o i he ond r m nt nd he eg ee r t hat
e f de
t r or

a ars toft i de ade -ongrltons p,t co ti c nce t taras bl j ycoul
s e ul her c sl eai hi he ur s onvi d ha e ona e ur
d
fnd t the f l et r ques a r a t e tr Sec Agr eme wase us bl Se 1
i ha r aiur o e t nd e d he n ie ond e nt
xc a e. e d.

( di t tt cic tnc e us dag a orsfiur t r dade dofgitwheekhecek'
hol ng ha he rumsa es xc e r nt ' al e o ea
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f, r t lr s
t
of i w a a
fce s boutt cl e f t da 't g a ort us e t gr nt esa t i a nt a s w a
he os or he y,' he r nt r t d he a e nd he r ge , nd he s

a s edbyt age t tt de dwastlkeghelwa e i''.
sur
he ntha he e
ci s
t
ntd t')
To t e en Rut f r a gue t tW hal n' f a e i e e cl i i ba r by
he xt t her o d r s ha
e s r udul nt nduc m nt a m s r ed
t s a ut oflm ia i ns t cou tc l st tge ne i s s o m a e i lf c pr l
he t t e i t t o , he r onc ude ha nui s ue f t r a a t ec ude

s mmayj d me to t i g o n a wel l i u ds u e ta W h lnddn to ti ac p o
u r u g n n h s r u d s l. t s n ip td h t ae i o ban o y f
t Se
he cond A g ee e untls fl t pr vi l w s taga ns Rut r or a o he si 2011
r m nt i he ied he e ous a ui i t he f d nd t r n
a t , ha s di no dico rt tt m a e i lc ngesha bee co e e f om he untlt t
nds hus t t he d t s ve ha he t ra ha
d n nc al d r
r i ha
tm e. W hie Rut r or f t W ha e f no r que tng a c oft Se
i
l
he f d auls
l n or t e s i
opy he cond Agr m e a tr
ee nt fe

s sg iandague t ts fie t a twihduedii nce t lis qofwhe afa
he ined t
r s ha he ald o c t
lge ,he ksueg
n rud
s d r s na y ha be n di c ve e a w ih m os i s s ofr a ona ene s a e t ca l be t
houl ea o bl ve e s o r d, s t
t s ue
e s bl s , r ypi ly s

lf t t j y. Pe yl ni LieI .Co. Bumb e 665F.Supp.11 1 ( D.
et o he ur ' nns va a f ns v.
'
r v,
90, 202 E. Va.
1 . Ont src d,t c t ncudest taj ymus deemi whe W hae t o t
987)
hi e or he our co l ha ur
t tr ne n ln,hr ugh he
e r s ofdue dii en s d ha dic
xe ci e
lg ce, houl ve s over d t m a era cha s t t e Se ond A gr e ent
e he t i l nge o h c
em .

Ac o d n l,h c u t ld n Ruh ro d' moin frs mma yj d me twi r s e tt t s
c r i gy te o r wil e y t ef r s to o u r u g n t e p c o hi
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ai 4
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I CountI,W hal n s e t r c rf br a h ofq s - ontac ,ba e on Rut r or s
n
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f i r t ma emo ta ep y ns I mo igfrs mmayj d me t nt i cam fre utbe
al e o k rg g a me t. n vn o u r u g n o h s li o q ia l
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r l f Ruh ro dag e t a tecam fisa amatro lw, ic t es be tmatro tecam
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r he eains p he ris he quia e

rme yo rsiuin go n e i q a i o ta t ru j s e zc me td e n tle' . Be a e
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e
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rc v r fru j s e rc me twh na e p e sc n rc c vest es be tmatra is e te
e o e y o n u t n ih n e n x rs o ta t o r h u j c te t su ,h
c t ilgr ntRu he f d' m oton w ih r s c t t s c a m .
our w l a
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t e pe t o hi l i 5

4 l hi i talbref Rut r or alo a guedt tW hal scl m off a enti
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3:2c 00 2 2 U. Dit LEXI 1 6 4, t*1 - 0 ( . Va. b.1 201 ) s eas S. lS e
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S 7 46 a 7 2 W D. Fe , 3 * e lo Coa als
,
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r v. oa En r
s, 7 1 c 00 5, 3 S. s.
S 34 a 2 1 W D.
Fe l 20l )( mp szngt t t t Fo t Cic ta teSu r meCo t fVigi aha er c gnie
b. , 3 e ha ii ha boh he urh r ui nd h p e
ur o r ni v e o z d
atlrudi t i uc me t e c p int t e on cl sr e'.
tfa n he nd e n ' x e to o he c omi os ul'
)
5The eour r
e ai hat he
ee
nduced by faud.
r
t ecogniest W haln cl m st t Second Agr m entwasi
z hat
However underV igi a lw ,a faudul l pr ed contacti notaut a i l voi butC dabl a
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t eopi o t ep ryij r db t fa d. An ronv. a ma 3 Va. r 22 30( .1 ) l
h ton f h a t n u e y he r u ' des
'
Sh r , 8 Ci. , Va 995 . f
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en s ucces f i herpr ofCount1 i f l t tt Se
s ul n
oof
, t olows ha he cond Agr e r ai t onl
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wrte sa ementesabls ng t r atons p oft pari wih r pec t t Pr t t f ecl i
itn tt
t ihi he el i hi
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anycl m f br
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10

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he f d e che hi r e nt

wh nh so p dma n p y nst W &R Pa te s i i Ma c o 2 0 ( Co . !
e e t p e kig a me t o
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I a a tonf bra h ofc rctunde Vigi alw,apl ntf mus de
n n ci or e c
onta
r r ni a
ai if t monsr t ( )a
tae 1 n

e oc a ec nrc, 2 avolto o b e c o ta c nrc, n ( )c ns q e ta ij r o
nf re bl o ta t( ) i ai n r r a h f h t o ta ta d 3 o e u niln u y r
da a t t pl i if Sç W esm i t rl tng Cor v.La psU nlm ie l ,379 S. 2d
m ge o he a ntf . e
t ns e nvesi
p.
m
i t d, nc.
E.

31 31 ( 1 ) Topr t f mai ofa e orea econta t t pli ifmus s
6, 7 Va. 989 .
ove he or ton n nf c bl
rc,he antf t how
t tt r w a a m ee i oft m i on a1 m at r a t m s Se H e'z Cor v.Zurch A m .l .
ha he e s
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p.
i
ns

Co.49 F.Supp.2d668,676( D. 2007)(t-l bae-i r quie ntf rfndi t
, 6
E. Va.
kg-he s lne e rme o i ng he
l
exi t e ofa co r c ,wr te or l i pled,orot r s i a s i ofm ut las e a t
senc
nt a t it n, a , m i
he wi e, s how ng
ua s nt t he

tmeoft ag e me ,ie,t pr r a k ei oft mi .' ( i Snvde- ki
i
he r e nt .. he ovebil me tng he nds'' quotng
)
rFal ngham
v.St kbu c ,457S. 2d36,39( 1 5).
oc r er
E.
Va. 99 )
A ppl ng t s prnci es t c tc ude t tR u he f d i e il t s m a y
yi he e i pl , he our oncl s ha t r or s ntted o um r

j me onW haln' cai f bra ofc rc. Conta yt t algai i t c ai ,
udg nt
e s l m or e ch onta t
rr o he le tons n he ompl nt
t r i no e d e t tW ha e a Ru he f d e rag e d t tRut r o d woul pay he a
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pa tc ars a y, uc l sonei t a
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n he mountof$ 000 pe m o h. Alhou t W & R
20,
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Parne s p A gr em e pr de t tW ha e w ilr c ve a s l r c m e ur t wih he tm e,
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11

r c i d mont y c ksfo Rut ror whi h we edr wn fom hi pe s
e eve
hl hec r m
he f d, c
r a r
s r onalba ng ac ount
nki
c .

( hae De a 30. Shea kno e d,
W ln p. t )
c wldge howe rt t'wn' g hefr wo ddeemi
ve,ha t a y Rut ro dl ul tr ne
l
(hea ntoft mont yc c j' nd,hus t tt a
t mou
he
hl he ks'a t ,ha he mountwa ke . . thi dicei '
s û R . a s s rton.'
l

(d. t29,95.
1 a
)
Gi n t e de i t r c d,i udi W ha e s o n de ii t tm o t c t
ve he vi nce n he e or ncl ng
l n' w
pos ton es i ny, he our

co l t tnoras ej yc dfndi W hae sfvoro he cli f brac o c r t
ncudes ha e onabl ur oul i n ln' a n r am or e h f ontac.
A c r ngl t c twilgr ntRu he f d' m oton w ih r pec t t s c ai .
co di y, he our l a
t r or s i
t es t o hi l m
I1.

D ani ' M oton f Sum m arv Judam qnt
el s
i or

l CountI oft a ende c pl nt W h e aleg t D a elt tous y i e f r
n
V
he m
d om ai , al n l es hat ni or i l nt r e ed
w ih t c r t l e a i be wee W ha en a Ru he f d, t rs l r d about hecoupl s
t he ontac ua r l tons t n
l nd t r or afe he ea ne
t
e'

l t ng pe s land busne sr ai hi To pr va lc a ca m f t tousi e f r nc
ongsandi
r ona
i s eltons p,
e i m li or ori ntr e e e

wihacmtac orbusnes e tncyi Vigi a, pli ifmus s
t c r t
i s xpeca n r ni a antf
t how:$ 1 t e se ofa
û ) he xitnce
(
vai co rcua r ai hi orbusne se ca y;( k wl oft rltons por
ld nta t l eltons p
i s xpe tnc 2) no edge he eai hi
e t yont pa t t i e f or ( i e i li e frncei i orca i abrac or
xpecanc
he r of he ntrer ;3) ntntona ntree nducng
usng e h

tr nai oft rl i hi o expe tncy;a ( rs tntda get t pa t whos
emi ton he eatons p r ca
nd 4) e ula ma o he ry
e
rltons porexpe tnc hasbe dir e ' Dug/n v. ms 360 S. 2d 8 8 ( .
eai hi
ca y
en suptd.'
i Ada ,
E. 32, 35 Va
l ( i Chave v.J hns 335S. 2 97,1 ( 1 )
987) quotng
s o on,
E.d
02 Va. 985).
l t sc e,t pari 'di put c nt son t t r e e e ,whi h r qu r s W ha e t
n hi as he tes s e e er
he hid l m nt
c e ie
ln o
prove t D ani i ent onaly i er ered wih a cont ualr atonshi orbusi s expect
hat
el nt i l nt f
t
ract el i
p
nes
ancy.

Folow i t c pl i ofdi c
l ng he om eton
s over W ha e sonl e de e i s
y,
l n' y vi nc n uppor oft sel m e i he
t hi e nt s r
ow n a c
c ountofa phoneconve s to w ih Dor sA l f r Rut f r se utve as i t nt durng
r ai n t
i der e , her o d' xec i
s sa , i
w hi A l eralegedl i cat t D ani thad t
ch derf l
y ndi ed hat
el ç aken overR ut f d' fnances' and '
her or s i
'
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cut

W halnof. ( haln' Ans r t I er aore a 1 ) Thec tag e swihDa elt t
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12

s he de i i misbl he ra unde Rul 801c( )a 8 oft Fedea Rulsof
uc vi nce s nad s i e as y
r es ()1 nd 02 he rl e
Evi nc ,a t ti c
de e nd ha t annotbec i r ons
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r udgme .
nt

I h r re i o o iint Da ilsmoi nfrs mmayj d me t W h lnag e t t
n e b if n pp sto o n e' to o u r u g n , ae r u s ha
t sae tflswihi t a ncye l i s tf t i Rul 8 ( ( ( ,be aus Al fr
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her o d, ndi a e ha de f r ke ol l or t r or
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t tousitre e eca wihsa Da e' s
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Fort r as sae Rut ror smoto f s
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a d ne i p r, n Da ilsmoinf rs mmayj g n wil eg a td.
nd e id n a ta d ne ' t o u r ud me t l b r ne
o
The Cl k i die t d t s nd ce tf e c esoft s m e o a um opi on and t
er s r c e o e
ri i d opi
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e
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ENTER: i ûl a o J n , 3.
Ths
y f u e 201

lt c t
vtz
Chi fU nie St t sD i t i tJ
e
t d a e sr c udge

14