Cook et al v. CitiFinancial, Inc. et al

Filing 15

MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 5/16/14. (jcj)

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AT R- OKE,
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M EM ORANDUM O PI ON
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CI FI
TI NANCI I a
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A LG TRU STEE,LLC,

By:Hon. e E.Con a
Gln
rd
Chi fU nied St t D i ti tJ
e
t
a es s rc udge

D ef nda s
e nt .

Alna J c eCookfl t sa tona ns Cii na i ,l (( t' a ALG
a nd a ki
ied hi ci gai t tFi ncal nc. 6 i' nd
Ci )
Tr te,LLC (I Tr te). Ciiha move t dimist c ai purua tt Rul
use
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t s
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vi oce e. r he e s e orh ow, t' ton
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The f l w i f t ,t ke fom t pl i tf s com pl n ,a e a c pt d a t u f pup os s
olo ng ac s a n r he a n if '
ai t r c e e s r e or
e

oft i tntmoton. SeeErc onv. r ,551U. 89,9 ( 07)
he nsa
i
iks Padus
S. 4 20 .
O n M a c 1 2008 M r Coo obt i d a m orgag l n f om Cii The l n w a
r h 8,
, . k a ne
t e oa r
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oa
s

e de d by anot sgne by M r Coo a s cu ed by ade d oftus ont Cooks pr pe t
vi nce
e i d
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e
r t he
' o ry
l a e a 82 Thom asN e s H i
oc t d t 41
l on ghway, Lovi t Vigi a. Theno e a t dee oft s
t nd he d nz t
ngson, r ni 1
pr d t t he f iur t m a m o t gepa e sc tt e a e n ofdef ul t tm a l ad t
ovi e ha t a l e o ke r ga
ym nt ons iut s n ve t
a t ha y e o
f e os e a ot rr m e esi f roft l r
or cl ur nd he e di n avo
he ende .
O n Se e ber 1 2011 M r Cook w e t Cii sofi e i Cha l t vil a s
pt m
2,
, .
nt o t' tc n
rotes le nd poke t t
o he
c pa s of i e m a
om ny' fc
nage ,D a e l Cl m e s Att ttm e M r Cook û asc r nton t not
r ni le e nt .
ha i , .
t
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ur e
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IBot M r and M r Cook exe ed t deed oftus .
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b tsr gigt ma ep y n sa di i n n d n e o d fut' Co . 1 . W h nMr
u tug l o k a me t n n mmi e t a g r f e a l. mpl! 9
n
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e .
Cook s r d t s i or ato w ih M s Cl m e t ,s s
ha e hi nf m i n t
. e n s he ugge t d t the c i rpur ui a
s e ha
ons de
s ng
m orga l n m odii to unde t f de a H om e A f o da e M odii a i Pr r m
t ge oa
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(i P') M s Clme t a sdM r Coo t thewoul berquie t so ma nghi
$
HAM '. . e ns dvie . k ha
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m or ga pay e sa alow hi hom e t f l i o f e l ur i or rt qua iy f t pr a .
t ge m nt nd l
s
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She c ai ed t tCii oul d ve t m odiy t 1 15 onc hi ho e f li o f ec os e a t t
l m ha t w d i
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t
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h we j 5 o 0 h u a d olr. d. t ! , 5.
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M r Cook r s
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e ponde t thewa te r 'a
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M s Clme st thewo dne dtmet t nka t rquie nt t ts me i d. L. a
. e nt ha
ul e i o hi bouthe e rme s ha he ntone d t
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a

! 22,26. W he M r Cooka ke wha hewoul ne dt doi heee tdt tket sc s of
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s d t
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g op)ma ngt pa nt,a youwilbegnt g tltesfo t l n g tcain)peo e,
st
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gnor he e t r t l ou e
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l t a t lge yousa t ' I a !27.
eter nd hey'l t
tred.' d. t
Reyi on M s Clm e s r pr e ai ns whih t pl n if now ca m we ef le M r
l ng
. e nt ' e es nt to , c he aitf s
li
r as , .
Cook s eq nty so d ma nghi m o t gepa e s I t s i of201 M r Co
ubs ue l t ppe
ki
s rga
ym nt. n he prng
2, . ok
be n r evi c r ponde e fom Ciii or i hi ofhi de a ta die tng hi t c l a
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t lfe numbe f a ssa e. Howe ,û a eClme sha t d( m)hewoul r eve
ol re
r or sitnc
ver û us e nt d ol hi
bec
d ec i
s hlte sa t thes dnotes untlt ltesad s hi hewa i f e osle,( .
uc etr nd ha houl r pond i he etr vied m
s n orcl tr Mrj
Cook,doi wha Clmen glha t dhi t do,di notr pondt s hc rs
ng t e ts d ol m o
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o uc oreponde e. 1 a
nc ' d. t
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!41
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Ats poi pro t 201 Ciie ge OneManFi i (( M an')t s r i M r
ome nt ir o 3, t nga d
i nancal6One i ' o e vce .
Cook' l n, On J
s oa
une 1 201 M r Coo r c i d a l te fom One M ai e ur ng hi t
7, 3, . k e e ve e t r r
n nco agi
m o
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al
d ts n
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pa t nt o l n es vi
s
t ge
pa enti s s Tha s m e da M r Coo r e ve a l te fom A ta i Law Gr ad s ng
ym
s ue .
ta
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hi t tALG Tr tehadbe a n e a s tt etuse a t thi pr pe t woul bes d
m ha
use
en ppoit d s ubsiut r t e, nd ha s o ry
d ol
a a f r c os e s e on J y 1 201
t o e l ur al
ul 7, 3.
Ba e on hi i talc
sd
s nii onve s ton w ih M s Cl m e s M r Coo be i ve t ti wasnow
r ai
t
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tm e f hi t pu s a HA M P l n m odii to He s e
i or m o r ue
oa
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ubs quenty pl e over20 phone ca l t
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One M ai i a e f tt r a h M r Ba es On s ve aloc as ons t lne w e dea f l ng a
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e r
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nt d olowi
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hor r c di
nd
s bl o e ve
s ge. On ot r oc as o , r Cook bre l
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ify
s
poke t r pr e a i sw ho pr e d t ha up on hi .
o e es nt tve
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m
O n J y 11 201 M r Cook s
ul , 3, .
poke t a One M a n r pr s nt tve nn e Pa rc a who
o
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a s d hi of s ve alie sofi o m a i t the w oul ne d t pr d wih hi a i a i f
dvi e m
e r tm
nf r ton ha
d e o ovi e t s pplc ton or
a l n m odii aton. Pa r c a ga M r Coo a f x num be t us f s itng t ne s a y
oa
fc i
t i i ve . k a
r o e or ubm ti he ce s r
doc e sa t d hi t thi c s ha be n a sgned t Cha i s Br
um nt nd ol m ha s a e d e s i
o
r s a own- a r n.
W re

On J y 1 201 M r Cook s ket M s Br
ul 5, 3, .
po o . own- a r n,
W re who i r uc d he s fa t
ntod e r el s he
l sm ii ton de rm en s r s . M s Br n- a r n a s d M r Co t thi c s w a
os tga i
pa t t upe vi or
. ow W r e dvi e
. ok ha s a e s

on hol bec us c rai i m edoc
d a e e t n nco
umen spe ti ng t M r Coo sf der lgo r ntbe ft
t ra ni o . k' e a ve nme
ne is
ha notbe n da e f t c r ntye r She i c t d t thi c ewoul r i o
d
e t d or he ure
a.
ndia e ha s as
d ema n n
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û
pe ng/ d t t ' f
ys n de or m o t i he es a y um nt , nd ha he

s heduld f ec os ewoul beposponed du i t ttme. L us a ! 55.
c
e or l ur
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rng ha i
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-

M r.Cook s equenty m ade a angem ent f t r
ubs
l
rr
s or he eques ed i
t ncom e docum ent t be s
so
ent
t O ne M ai On Jul 17,2013,M r Cook caled One M ai and s
o
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y
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l
n
poke t a r es atve nam ed
o epr ent i
3

M ii m . M iim t d M r Cook t ts ha ' e tne , a t tdtl
ra
ra ol .
ha he d t a ws' nd ha c ooked lket
gr
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u d r iesh da p o e ala mo fc to ' I . t 6 . Ho ve,ae ta d y M r Co k
n e wrtr a p r v d o n diiain. d a ! 5
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we r ltr h t a , . o
ca l d t s m e phone num be a s
le he a
r nd poke t a One M a n r pr e a i nnm ed Ta ke
o
i e es nt tve
s ba. A fe
tr
c i ng M r Cook' i ntt Tas ba t d hi t tt f e os e s l w o d pr e t tday
onfnni
.
s de iy, ke ol m ha he or cl ur a e ul oce d ha
a o i na l s he e be us M r Cook f ie t tm el pr vi t ne es a y i om e
s rgi ly c dul d, ca e .
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doc e s W he M r Cook a ke he a
um nt .
n .
s d r boutt 30- y hol t tM s Br wn- a r n ha
he da
d ha . o W re d
men i ne t r pr s nttve i cae t çs hadne rhe r ofs h at ngr'a t tt r
to d, he e e e a i ndi td hat ihe
ve a d uc hi ' nd ha he e

wa nohi t thec ddot so t f e l ur sl. J.a !67.
s t ng ha oul o tp he orcos e ae -s t
p
U pon r c vi t s i or a i M r Cook r he t s e a a t r y i Lovi t
e ei ng hi nf m ton, .
us d o e n to ne n
ngs on.
A lhough t a t ne w r e a l te t A ta tc La Gr on M r Cook' be l , tw a t l t
t
he tor y ot e t r o l n i w oup
.
s ha f i s oo a e
f t pl i if t s op t f e l ur s l ,whi h t pl e a 1 30 p. , ha day.
or he a ntf s o t he or c os e a e
c ook ac t :
m t t
Ciis it d t hi tbi f t Cooks pr ry. O n Aug t 1 201 a t u t e'
t ubm te he ghes d or he
' ope t
us 9, 3, r s e s
de d w asr cor d i t l nd r o dsofN e s Co y, i g ni co yi t pr ry t Cii
e
e de n he a ec r
l on unt V r i a, nve ng he ope t o t .
On Se e be 1 201 Ciifl d a unl w f de a ne ac i n a i tt Cooks i t Ge r l
pt m r 0, 3, t ie n a ul t i r to ga ns he
n he ne a

DititCour ofNes Count The G e r Di t i tCo ta a de pos es i oft p o ry
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t Cii
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On Fe a y 3, l t Cookstl d t i t a ton aga ns Cii nd A LG Tr t e i t
bnl r 20 4, he
i e he nsant c i
i t ta
us e n he
Cic tCour ofN el on Count a s r i c a m soff a c t uc i f a br c oft de of
r ui
t
s
y, s e tng l i
r ud, ons r tve r ud, ea h he ed

tus, a br ac oft i ple c na ofgood f ih a f i de i 2 Ciir move t c s t
r t nd e h he m i d ove nt
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t sc t UponrmovalCiimovedt dimist c ai purua t Rul 1 b)6 oft
hi our.
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Feder Rul ofCi lPr
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vi ocedur The courthel a hearng on t m oton on Apr l21,2014.
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2ALG Tr t wasnamed a a çnom i def
usee
s ç nal endant' snce i e
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Standard ofR evi w
e

W he de di am oton t di m i sf f iur t s a ea cl i , he c tm us a ce a t e
n ci ng
i o s s or a l e o t t
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t c pt s nz
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1 l- e ded le tons nd a l e s bl a t nf r nc s n he ai i f ' a .

Viol S. v. i r eShi ncCo.708F. 527,53 ( hCi.201 . tW hieac ant
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ai if
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s tte nt o elef eq r
e ha abe s
a c us ons a a f m ul i r ia i oft el m e sofa c us ofa ton w ilno do. Be l
nd oncl i , nd or a c ec t ton he e nt
a e ci
l t '
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At.
lCom.v.Twombl 550U. 5 555(
y,
S. 44, 2007)(ntr cttona quottonmakso te .
i enal iai nd ai
r mitd)
To s vi dim i s f f iur t s a e a cl m ,ç c pl i tm us co a n s fci ntf c ua
ur ve s s al or a l e o t t
ai $ om a n
a
t nt i uf i e a t l
m a t r a ce e a tue t ' t e a c a m t r le t ti pl usbl o isf e.' A s of v.I ,
te , c pt d s r , o sat l i o e i f ha s a i e n t ac '' hcr t qbal

556U. 662,678(
S.
2009)( i Twombl 550U. a 570) I r e ngaRul 1 b)6)
quotng
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i t ou t y
i r he mpl n , t ta m nt, nd um nt sta he o he
m oton t di m i s s l a t y a e i e a t t c pl nta a t ntc. Se y ofSt t f
i o s s , o ong s he r nt gr l o he om ai nd u he i '
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Defnc v. i eNa cai Lt , 4 F. 700,705(t Ci.
e e Trmbl vi ton d.48 3d
4h r 2007)
.
Di cuss on
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1.

C ount O ne and Tw o:Act Fraud and C ons ructve Fraud
s
ual
t i

l Count O ne a Tw o oft i c pl i , he Cooks a s r c ai s f a t lf a a
n
s
nd
he r om a nt t
s e t l m or c ua r ud nd
c t u tve f a a ns Cii To s
onsr c i r ud gai t t .
uppor t s c a m s t pl i if a l t tCii
t he e l i , he a ntf s lege ha t
r pr e a i s m a f s s a e e st M r Cook, ihe i e i l orne i nty,o m uli e
e es nt tve
de al e t t m nt o .
e t r nt ntonaly
glge l n
tpl
oc s ons Spe tca l t pl i i f a l e t ton Se e be 1 2011, a e l Cl m e s
ca i .
cii ly, he a ntf s leg ha
pt m r 2,
D ni le e nt
f s y i or ed M r.Cook t he woul have t st m aki hi m orgage paym ent and alow
al el nf m
hat
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t
s
l

hi hom e t f li o f ec os e i o de t q lf f ra H AM P l n m odii a i
s
o al nt or l ur n r r o ua iy o
oa
f c ton. The pl i t f s
a n if
al o ass t Cl ent f s y advi hi t he s d i
s
ert hat em s al el
sed m hat houl gnore any l m odi i i l t
oan
fcaton eters

un i her cevednotfc ton oft da ef t f ecos es l Addii ly, hepl i if
tl e i
ii ai
he t or he or l ur ae.
tona l t
antfs
al get ton J y 1 201 Cha is Br
le ha
ul 5, 3, rs a own- a r n f le y a s d M r Cook t thi l
W re a s l dvie
.
ha s oan
m odii a i a i a i ha bee pl ce on hol f r 30 da , nd t tt f e os e s l
f c ton pplc ton d n a d
d o
ys a ha he or cl ur a e
w oul be s a durng t tm e. Thepl i if cl i t tM r Cook r a ona y r le o ea h of
d t yed i hat i
a ntf s a m ha .
e s bl e i d n c
t s f s s a e e st hi de r m e .
he e ale t t m nt o s ti nt

Unde Vigi al tl)c us ofa tonfracualfa r quiest pli ift pr ( )
r r ni aw,ça a e ci o t rud e r he antf o ove: 1
aflerprs ai ( ofamaeilfc,( ma i e i lya knowi y,4)wihi e
as e eentton, 2)
tra a t 3) de ntntonal nd
ngl ( t ntnt
t mil d,5)rla ebyt parymild,a ( rs tngda get t parymil ' Cohn
o sea ( einc
he t se nd 6) euli ma o he t sed.'
v.
Knowldg Co ci sl .585S, 2d 578 581( 2003 . Topr i o acam fr
e e nne tons nc,
E.
,
Va. )
eval n li o
c tuc i f a a pl i ifm us pr t tt de e ntneglge ty m a a f l e
onsr tve r ud, a ntf
t ove ha he f nda
i nl
de a s

r pr s ntton ofama e i lf c ,a t thes f r d da ge a ar ul ofhi r a ona er la e
e e e ai
t ra a t nd ha
ufe e ma s es t
s e s bl ei nc

ont mirpr enai SeeBa ofMontea v.Sine Bn 1 F.d 81 826- ( hCi.
he se es tton.
nk
r l c t nk, 93 3 8, 27 4t r

1 9 ) F a dcamsaes b e t oRul 9 b o t eFe ea Rue o Ci l o e u e wh c
9 9 . r u li r u j c t e ( ) f h d r l ls f viPr c d r , ih
r quiest tpl i i f d t t wih pari a iy t c r um s a esc tt tng f a . . ' Fe R .
e r ha a ntf s t a e t
s
tcul rt he ic t nc ons iu i r ud . .' d.

Ci P. b)
v. 9( .
I m ovi t di m i s Cou s One a Tw o, t a guest tt pl i tf sc m o e t bls
n
ng o s s
nt
nd
Cii r
ha he a n if ar t s a i h

t tM r Cook r as bl r le ont or lr pr s a i a is ,snc t not a t de d of
ha .
e ona y e id he a e e enttons t s ue i e he e nd he e
t us e es l s a e t tt f iur t m a m or g pa en s m a l d t f e l ur Att s
r t xpr sy t t ha he a l e o ke
t age ym t y ea o or c os e.
hi
s age oft pr
t
he oceedi however t courti unabl t agr
ngs,
, he
s
e o ee. The i ue ofw het a part
ss
her
y

r a ona y r i on r pr en a i i or na iy a que ton f rt t i roff tt de e ne Se
e s bl eled
e es t tons s di r l
s i o he r e
ac o t nni . e

Ba k ofM onte l 1 F. a 834 ( tng t tt r a o blnes ofapa t sr la ei a
n
r a , 93 3d t
no i ha he e s na e s
ry' ei nc s

Sq si qt bede de byt j yi lg of i erai t naur oft pa te a t
kue tonl o
ci d he ur n iht ,nt la,he t e he ris nd he
t a a ton,t r pr s nt tons om i s ons a dit a tonspr s nt d by t de e nt a t
r ns c i he e e e a i , s i , nd s r c i
ee e
he f nda , nd he
6

d te o ivetg to a s me b t epanif'; ie v. e e Co p, 0 F.d9 3 9 2(t
uis f n siain su d y h li t ) M l r Prmir r .6 8 2 7 , 8 4h
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l
Ci.1 (mphaszngt tt isue o r i ea isr s blne s goi a t ydot
r 979) e
ii ha he ' s s f elanc nd t eaona e s , ng s he
i
o

s b e tv sae o mida da piainso o j ci sa d r so ra o a e e s ae
u j cie tts f n n p l to f be t tn ad f e s n bln s , r
c
ve
pr e ne l fcua is f t tiroffc ) Asumi t tut oft pl ntfs algai
e mi nty a t lsues or he re a f'. s ng he r h he ai if' le tons
r r ng t r pr e a i m a by Ciis a nt ,t co ' c ude t tt alega i
ega di he e es nt tons de
t ' ge s he ul oncl s ha he l tons
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ENTER: s l' d y o M a 2 4.
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