Baird et al v. The Federal Home Loan Mortgage Corporation

Filing 17

MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 3/29/16. (jcj)

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I THE U NI N TED STA TES DI STRI COU RT CT FOR THE W ESTERN D I STRI OF V I F I CT RG N A CH ARLOTTESV I LLE D I I ON V SI CL S OFFI U. DI COUFF ERK' CE S. ST. AT ROANOKE, VA FIED L h:2 2S 2 1 1 26 z' ' e Ju BY I c. : TODD A. RD,e a1, BAI t . jt , -M y z cl u w- u ./) 'd Pl i i f , a ntf s Ci lAci No.3: 5- 00041 vi ton 1 CVM EM O M N DU M O PI I N N O THE FEDEM L HOM E M ORTGAGE CORPOM TI , ON By: Hon. e E.Co a Gln nr d ChifUnie St t sDititJ e t d a e src udge D e e nt f nda . 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' gu t 9 20 9 GMAC M o ta ea p itdPr fs in l rg g p on e o e so a Fo e l s r Co r to o Vign a(PFC' a s b t uetutei plc o Be wik. e rco u e mo ain f r ii < ' s u si t r se n a e f s c Th 1 ) t a i me doc e wasr co de i t Clr sOfi e f rLouiaCo y. ppont nt um nt e r d n he e k' lc o s unt Pli if e nm al de a t on t i m orgag 1 . a r s t GM AC M orga a ntfs ve ly f uled her t e 0= As e ul, t ge i tu t d PFC t f e l eon t Pt ry.PFC publs dt a rie e t f t nsr c e o or c os he ope t ihe wo dve ts m n s or he f e l tr s l i t Ri hmond- mesDipa c on Se e r28 2009 and Oc obe 5 2009. or c osle ae n he c Ti s th pt mbe , t r , On Oc obe 7,2009 a a oxi t l 5: p. i PFC c t r t ppr ma ey 30 m , onduc e a f r c os es ei fon oft t d o e l m al n r t he Louia Co y Cic tCot Fr ddi M a m a t hi tbi of$11 01 00 a bec m e s unt r ui ut e e c de he ghes d 2, 7. nd n r co downe oft pr rytlough a e c e tu t sd d. AC M orgaget n r pored e r r he ope t lr n xe ut d r see' ee GM t he e t t c e tblr a t tpli if 'hom eha be n f r c os d. o di t t c pli , antfs o r di ze us ha a ntf s d e o e l e Acc r ng o he om a nt pl i if di no be om ea r oft f r l ur untlNove rof2009. d t c wa e he o ecos e i mbe On M a c 1 201 Fr ddi M a fl d a unl wf de ane a ton a ns pl n if i r h 9, 2, e e c ie n a ul t i r c i gai t aitfs n t Louia Count Ge r lDititCour. a ntfswer s r e notc oft aci n bym al On he s y ne a src t Pli if e e v d ie he to i. Aprl10, 2, hege r ldititc thel ahe i i whih i a r d pos es i o t i 201 t ne a src our d arng n c t wa de s son f he pr ryt Fr ddi M ac Pli if we enotpr e a t hea i ast y a lgedl hadno ope t o e e . antfs r es nt t he rng he le y notc oft a ton. 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W a h. a . , 0 6 ( e yigmo int d s s acam u d rt Co sl rPr tci n W D. s M r 8 2 0 ) d n n to o imis li n e he n t me o e to Act des t non- omplanc wih t notc a c epr vii be aus s h al ga i of , pie c i e t he ie- nd- uz o son, c e uc le ton d c p i b sne sp a tc sG lal e ssid p nd n o a yc n rc b t e t epate ' e e tve u i s r cie û e ry xit n e e e t f n o ta t ewe n h ris). c Pli if do no co e ot r s buti t d al get tt y s tsi d t no i e a cze antfs t nt nd he wie, nsea le ha he aife he tc - nd- lr pr son. ovii Thus t c tfndst tpli if we er quie t co y wih t notce a cle , he our i ha antfs r e r d o mpl t he i - nd- tr pr vii pro t flngt i c o son i r o ii her ompl i . ant Pli if a guet tt y s ntadr f ve son o t co antt Fr ddi M a o Jme 23, antfs r ha he e a t r i f he mpli o e e c n t 201 ls t n t e we ksbef r slng s t Fr ddi M a c e t tt e wee wasnota 5, e s ha hr e e o e i ui. e e c ont nds ha hr e ks r a ona epe i f i t t ke c r c i a ton,a t r f e pl i if di notc e s bl rod or t o a ore tve ci nd, he e or , antfs d ompl wih y t t no i - nd- tr pr vii i t dee oft s . n ism o i howe r Fr eM a ct st he tce a cle o son n he d nzt l t ton, ve , eddi c ie o s r lc s si whih t dititc ltf eve a a e n c he src otr ound t t pli ifpr de no notc t t hat he antf ovi d ie o he d fn a tp irt iiitn j d ca a to a d t u , imis dtea to . ec u t st wae ee d n ro o rtaig u iil cin n ,h s ds s e h cin Th o r i ma r l ofa a ho iy t s ny ut rt o uppor t pr ii t tt e wee i no aG e s bl pe i 'f a t he oposton ha hr e ks s t d a ona e rod' or r br a hi pa t t a las ilta ec r tvea ton. onl a ho iy t tFr ddi M a e c ng ry o t e t riit oreci c i The y ut rt ha e e c pr vi si t Re lEsa eSe te e Pr edlesAc t tgve lnde st ry da t tkea ton o de s he a t t tlm nt oc tr t ha i s e r hit ys o a c i wihrs c t aboro rsi r 1 U. C.j2605()2) Thec ti no pes dedbyt s t e pe t o r we ' nquiy. 2 S. e( . our s t rua hi a gum e ,a t ts m e s a ut pr de t tt l nde m us s nd r c ptoft co r s nde e r nt s ha a t t e ovi s ha he e r t e e ei he r e po nc wihnfved y d ne st a to rq se i tk nwi i s hpeid. I . 2 0 ()1( . t i i a s s ls he cin e uetd s a e t n uc ro ' d j 6 5 e( )A) u h ' Ass uch,t sa ut cea l co e a e ast ton i whih al nde m a t ke c r c i a ton he tt e l ry nt mplt s iua i n c e r y a ore tve c i wihi afve- y pe i The ef r ,t c tfndst tpl i if ha s fcinty pl tn da rod. r o e he our i ha antfs ve uf e l ed c omplanc wih t notc - nd- tr pr son i t de d oftus. i e t he ie a cle ovii n he e r t I. I Faiur t St e C l m s l e o at ai Fr ddi M a ne a gue t t e n i t c r doesnotdim ist co pl n f f l e e e c xt r s ha, ve f he ou t s s he m ait or aiur t c m pl wih t notc a c epr vii i t de d oftus,t co a n f ist sa ea o o y t he ie- nd- ur o son n he e r t he mpli t a l o tt ny c am upo whi h r le m a begr nt d. li n c ei f y a e a. Count1 Br ac o ExplctCove : e h f ii nant i t De d ofTr t s n he e uj l CountIoft c n he ompli ,pl n if cli t tFr i M a br a he t de d oftus, ant aitf s am ha edd e c e c d he e r t whih r uie t tal aci nst ke t wa dsf e os ebei a c dq ewih a i a elw . c eq r d ha 1 to a n o r or cl ur n c or nc t pplc bl a Spe ik aly,pl i if c e t tGM AC M orgage' a nt e o PFC ass tt etuse c t l antfs ontnd ha t s ppoi m nt f ubsiut r t e wa i ld, ha Be wi k r m anedt tuse l rt de oft u t a t tPFC wa no s nvai t t s c e i he r t e mde he ed r s, nd ha s t e il d t f e os on t Pr t Thus pl ntfsco e t tt f e l ur ,Fr ddi M ac' ntte o or cl e he opery. , ai if nt nd ha he or c os e e e s s eq n t a u de ane a to ,andpli if 'e c i n we ei vi a i ofVigi a1w ubs ue t ml wf l t i r ci ns antf s vito r n olton r ni a a dt tr o t ed e o tu tI mo i t ds s Co n 1 Frd i M a ag e ta : 1 n he e ms f h e d f r s.n vng o imis u t , e d e c r u s h t ( ) panif lc sa igt c le etea p it n o PFC a s bsiuetu te ()GMAC litfs a k tndn o halng h p on me t f s u ttt r se ; 2 M o ta e sa ponme to PFC a s bsi etutewa v ld; n ( ) anif ' a ko n tc rg g ' p i t n f s u t r se s ai a d 3 plitfs lc f o ie mt a gt nti ba r d by t sa u eoflm iatonsa nots r une s r e he t t t i ti nd uppore by t t r soft de of td he e m he ed / our wil r s c r um nt n ur t s . Thec t l add e sea h a g e i t n. nz t1 L St ng andi Asa i ta m a tr Fr ddi M acfr ta gue t tpl i if do nothavesa ngt n nii l te , e e is r s ha antfs tndi o c le e t a ha l ng he ppoi m e ofPFC a s tt e t u t e. ha sandi a pl i ifm us nt nt s ubs iut r s e To ve t ng, a ntf t de nsrt .( )t theors hass frda Sn u yi fc't i co rt,pa tc ai d, mo tae' 1 ha he ufee n û j r n a t'hat s ncee riulrze i 1 I tero p st nb ifpanif asr ta, n e Co nt,h yd n tcam ta F e deMa b e c e n h i p o ii rel litfs seth tu d r u 1te o o li h t rd i c ra h d o t de d oftus be us t y di notr cevea t alnotc oft f r l ur s l Ass h,hecoltnee notde de he e r t ca e he d e i cu ie he o ecos e ae. uc t tr d ci whehe pl ntfsha saedaplusbl cam f rbr ac oft dee oft tt rs ht y. t r ai if ve tt a i e li o e h he d rus mde uc heor 6 a a t l ri ne t ()t a t eei ac u a c n e to b t e t ij r a dtec n u t nd cua o mmi n ;2 h t h r s a s l o n cin e we n he nu y n h o d c c mplie o ; nd()t a ii l eyt a t eij r wi ber d e s db af v r b ed cso o an d f a 3 h t t s i l h t h n u y l e rs e y a o a l e iin. k l Lu a v Dee deso W idie 5 4U. 5 5 5 0 61( 9 2 . s ef rab e c o ad e o in . fn r f l l , 0 S. 5 , 6 - 1 9 ) To u o ra h f e d f f tt t one mus ha sa ng t G s e t sown l lrght a i t r ss a c nnotr s hi rl , s t ve t ndi o l s r hi a ega i s nd n e e t , nd n et s c am t r le on t l lrg sori e essoft r pa te . W a t v. l n,422U . 490, l i o ei f he ega i ht nt r t hid ri s' rh Sedi ' S. 4 9 ( 9 5 .no d rt ha sa dngt s o ac nr d i Vign a t n mu tb ap tyt o 9 , 1 7 ) I r e o ve tn i o ue n o ta n r ii,t e s e a' o r o t b n fcayo t ec nr c. W ofv. d. tlMo t. s , 1 F. p' 3 6 3 2( t Ci. e eiir f h o ta t' l Fe Na' rc As ' 5 2 Ap x 3 , 4 4h r ' n 2 3. 01 ) l t i t ntc s ,t c tc l n he nsa a e he our oncudest tpl ntfsdo no ha sa ng t c le ha ai if t ve tndi o ha lnge PFC' a n men a s tmt tu t . antfst notale t tt y a eapa t t t S pppi t t s ubsi e r see Pl i if i do lge ha he r ry o he doc nta n i PFC,t tt y a et i e ume ppoi tng ha he r he ntnded be ûca i soft a nt e ,o t t ne ire he ppoi m nt r ha t y ha a diec i ve e i t m a tr'Le sv. tonsa M o' . he d ny r t nvol m nt n he te .' wi Nai t r lc.LLC, o. t N 3:3 0 2 , 01 W L 3 25 , t* ( . Va J n. 9 2 4 ; e as Bemetv. n o 1 CV0 0 6 2 4 25 9 a 3 W D. . a 2 , 01 ) s e lo i t Bn k f Am.N. , 1 . A.3:2CV3 , 01 W L 1 5 5 , t* ( D. . r 1 , 1 )(i dngt t litf 42 2 3 4 46 a 7 E. Va Ap . 8 20 2 fn i ha p an if lc e sa igt c le g t v ldt o t s si t t se a p it n be a s çp litf a k d tndn o haln e he ai i f he ub tt e nzte p on me t c u e ç jan if y u g wa no ap ryt ted c me t p o ni PFC, n ta çt ln e qa p itdPFC a s t a t o h o u n a p itng a d h t lhe e d r p on e g s s bsi t tu tea dt lnd rsc t e p e a e ted c me t (h bor wejha n dr c u tt e r se n he e e' oms l rp r d h o u n ; te ro r d o ie t u iv l e n .ç ih u a e f r e b ec nr c rg t glitfs lc sa igt a tc te n o v me f) S to t n n b c a l o ta t ih , panifj a k tndn o ta k h W vai t oft a nt t'M orion v.W e l Fa zoBa N . ,30 F.Su 3d 449,454 ldiy he ppoi men .' rs ls r nk- A. pp. ( D. 201 . hemor pli if ha nots fce l e tbls dt tt a nt ntof E. Va. 4) FM r e, antfs ve ufiinty sa ihe ha he ppoi me PFC ass tt t tu t a f td t i rg so d i ,ast y G tl hadt oblgai t make ubsiu e r see fece her i ht r utes he i il s he i ton o pa nt t rt ( oe. I ;s ealoLi aPr Hol ngs L. C.v.1 yme s mde he nl t ' d. e s voni op. di . L. ' 2840- 2976 1 Fami nRd.Hol ncs L. C.71 F.Supp. 7 735( D. ih. a 1 201 ) r ndo di . L. , 7 2d 24, E. M c M y 3, 0 (s t ug t eçbjro rc ranyha a itr s i a odngf r cos r .. h v ldt o t e E ho h h ç or we e til s n ne et n v ii o e l u e . t e aiiy f h Al g a sg me td e no af c wh t e gJ( lro ro siso lg to , u o yt who () si n n o s t fe t eh r a b or we we t b iains b t nl o m a El ro ri o lg td.) F n ly tec ur b le e t a t s bsiuea p it n d c me t b o r we s bi ae '. i al ,h o t eiv s h the u ttt p on me t o u n ' wa c e rt tGM AC M o t e wihedt a ntPFC t s l pl i if 'pr ry a f e os e. s l a ha rgag s o ppoi o e l antfs ope t t or cl ur Pli tfsdo notaleget tGhedocl twa at r d afe delve' t PFC o t ti a n if l ha ç t lmen s le e tr i z o y r ha t mir pr s n edt i e i ofet rpa t 'Beme t 201 W L 135 46,a * Ass h, he se e e t he nt ntons ihe ry. r t, 2 ' 45 t 7. uc t c tc ncudest tpli if do no ha sa ng t c le t a nt e ofPFC a our o l ha antfs t ve t ndi o ha lnge he ppoi m nt s s tt etusee ubsiut r t . i Vaii o h Ap i me to b tt t T u te i l t ft e pont n fsu siu e r se dy Eve i t c tco d fnd t tpl i if ha sa i t c lngePFC' a n me n f he our ul i ha antfs ve t ndng o hale S ppoi t nt a s tmt tu t e Fr ddi M aca guest tGM AC M orga vai y a n edPFC a s ubsi e r s e , e e r ha t ge ldl ppoit s s tt etu t .ç tu t ' powe t f r c os i c e r d by t dee oftus 'M o s 30 ubsiut r see ç r see s A r o o e l e s onf re he d r t' ni on, F. u p. da 4 3(iigFara Ct Re e eo me t& Ho s Au h v Rik e 7 7S. 2 8 6 S p 3 t 5 ctn ifx v. d v lp n u . t . . e s , 0 E.d 2 , 8 9( . 01 ). d e o tu th st p p o e , iha et Cos c r t eln e 2 Va 2 1) A e d f r s a wo u s s whc r o ç e u e h e d r t be i i r si e e ti t pa ce i co ysa t pr ec t bo r rfom ac elr ton oft nefc a y' nt r s n he r l t nve nd o ot t he r owe r c eai he de a f e l tr dnt s c li pr ryprort t f flm e toft c tonspr ce nt bt nd or c osle he e trng ope t i o he ulil n he ondii e de i i o e . M ahe v. M o ta eCo .7 4S. 2 1 6 20 ( 2 .ç s b t u etu te t mp s s' t ws PHH rg c p , 2 E.d 9 , 0 201 ) K u si t r se ' A t ma bea nt d unde a s pa a enotrz d doc ntbyr movaloft orgi tuseenn e y ppoi e r e r t a ie ume e he i nal r t m d i t d e o tu t'M o rs n, 0F. u p. da 45 s eas Va Co eAn j5 - 9 9 (-h n he e d f r s. rio 3 S p 3 t 4; e lo . d n. 5 5 () çl e ' lpa t s u e by t de d o t s . .s lha t r ghta pow e t a nta s tt t t s e ry ec r d he e f nz t . hal ve he i nd r o ppoi ubs iu e nlt e o tuse f a r a on a r r es ofwhe he s h rg a powe i e e sy gr nt d i r r t es or ny e s nd, ega dl s t r uc i ht nd r s xpr s l a e n s h de d oftus, e cu i a a lnowl ng a i t m e desg tng a a n i a uc e r t by xe tng nd cc edgi n nsnt nt i na i nd ppoi tng s tt e.(.Oncea ntd,hes tt etuseei e we e byVa Codej55 59( t ubsiut t ) ppoi e t ubsiut r t s mpo r d . - 7) o f e l ea s lt pr ry..'Bol iv. nk ofAm .N o.1 1 c 225, or cos nd el he ope t .. ' our Ba , : 0- v2010W L 33851 77, a * ( D. . . 4, 0 . t 3 E. Va Aug 2 201 ) Thec t le st tpl n if 'co ant e n lbe al consnz d,doesnotc ai our bei ve ha aitf s mpli , ve i r ly t e ont n s fc e f c a alegai nst unde mi PFC' a nt nta s tt dt see Thedee of ufii nt a m l l to o r ne S ppoi mr s ubsim nlt . d tus, ed J 9, 4,a nt d Br ndon Be wik ast orgi t se GM AC Bn t n r t dat une 200 ppoi e a s c he i nal nzt e. nk he ta f e t no et GM AC M o t ge, c wase i ty al we unde t t nnsoft r nsen'd he t o rga whih xplcil lo d r he e he n t. eBooli 2 0W L 3 8 7 , t* (i ig u e ie tc l a g a efu i ten t o e Se lt , 01 r 3 51 7 a 2 fndn , nd r d n ia ln u g o nd n h oe h r ,h tçth e piitr o t Noea is h r i iaet tt yaege l ee t a ç l e x lct e ms f he t t sue ee ndc t ha he r ey g ta se a l' OnAug s 1 , 0 , AC M o ta ea p itdPF a s b t tetute r n f rbe). u t 9 20 9 GM rg g p on e C s u si z r se tt t o h a e c e a nt e o s tmt tuse docl e t twa r or d i t Cl r s hr ug n xe ut d ppoi m nt f ubsi e r t e lm nt ha s ec de n he e k' Ofk eofLouiaCot y. c t le st t a t hol roft no e,GM AC M o t ge f s mt The our bei ve ha, s he de he t rga wa t S ry s c e by t de d oftu t'a a horze t a ntPFC ass tmt tuse s he d t e ur d he e pa r s' nd ut i d o ppoi ubsi e r t e f a ras npurua t Vigi alw.SeeLa a * ( ( h No ei p se s db g or ny e o s nt o r ni a d t 3 $Tq e t s o s se y t ; he . d fnd nj a i t u t eGa t s c r db t ed e o tu t') s eas HinPh m v. n o ee a t, nd s h s h p ry e u e y h e d f r s.' ; e lo e n Bn k f ' N. , 5 F. u p. 8 4 81 ( D. . 2 (idn t tpanif h ven talg d Y.8 6 S p 24 0 , 3 E. Va 201 ) fn ig ha litfs a o le e s fc e f t t s t tt a nt e ofa s tt etuse wa fa ul ntwhe l he ufi i nt acs o how ha he ppoi m nt ubsiut r t e s r ud e nç t rc r d s ls sn fcu l a i f rc ncu i t a a yoh re tt b sd s( d fnd nj e od ico e o a t a b ss o o ldng h t n te n iy e ie t ee a t he posese t Not '.Thec t u t rfndst tt t mbi s s s he e' ) our f rhe i ha he ma guouslngua i t de doft s a ge n he e nzt ce rya t o ie GM AC M o ta et a p itas bsi et se . eCo . A !2 lal u h rz s rg g o p on u tmt nlte Se mplEx. 4 (te r a isopto ma fom tmet tmermoveTr teanda ntas c s tuse t ç nde, t t in, y r i o i e use ppoi uc esor r te o a Tr seea nt d he e ny u t ppoi e r unde ,' r'who ts l s c d t a1 t tte, wera dute c e r tha l uc ee o 1 he il po nd is onf red u nTn se heen a db Ap lc beLa ' . an, po zte ri n y p ia l w.) Ag i GMAC Ba k wa t eo ii l e d r ' n s h rgna ln e unde t de d oft s,butt n i ta f re t not t GM AC M o t ge. r he e nzt he t r ns er d he e o rga Unde Vigi al w, r r ni a 9 whe anot i ne taed, hedee oftas s cli t tdè ne e s rl nmswih i.Se n e s go it t d llt e trng ha bt c s a iy t t e W ila v Gif r ,1 4S. 4 3 4 4( .1 2 ) s eas Si s nv Bih p 8 Va 1 0 lims . fo d 2 E. 0 , 0 Va 9 4 9 e lo tmp o . s o , 2 . 9 , 1 8 W L 29 7, t* ( . u . ,1 8 )(t i u o b e l t z ta ata se o asc e d b 86 8 a 7 Va J l 1 8 6 çt s nd u tdy n e h t r n fr f e urd e t 1 c riswi i tes c rt wi u f r l s in n o d lv r ' .n s m,h c u t o cu e are t t h e u i t t o ma a sg me t r eiey.) I u t e o r c n l d s h y ho ' t tpli if ha nb s f e l al ge t tGM AC M orga di notha a hort t ha a ntf s ve t ufki nty le d ha t ge d ve ut iy o a ntPFC ass tt etuse unde Vigi al w o unde t t r soft de o t u t ppoi ubsiut r t e r r ni a r r he e m he ed f r s. N e rhels , antfsa guet tc ran de i incesast t e c i oft s tt e ve t e s pli if r ha e ti fce i o he xe uton he ubsiut t u t a nt e docl ntr nde s h docl nti i Spe ii aly, antfsc e t t r see ppoi m nt tme e r uc lme nvald. c fc l pli if ont nd ha t sgnor J fr y St pha ad it d t the sg t a o f e l tr d ume samont he i , e fe e n, m te ha i ned hous nds f or cosle oc nt h wihoutr di t m andwihoutt not ypublc, kol Shet n, e e i t s m er . t ea ng he t he ar i Ni e lo pr s nt n he n oom A ss h,pl ntf sas e t ha t a uc ai i f s r t t he ppoi m e ofPFC a s tt e t us e w asi ld,a t t nt nt s ubs im r t e nva i nd ha PFC di notha a hort t f e os on t Pr ry.Thec ti c tane t dia ee d ve ut iy o or cl e he ope t our s onsr i d o s gr . Unde Vigi al w,me epr ed a ir gul tesi t e c i ofmorga doc nt wil r r ni a r oc ur l r e mii n he xe uton t ge ume s l n tmd r n t lg l ldt o to ed c me t. . d An j5 -1 6. (W m iigta o t e mie he e a vai i f h s o u n s Va Co e n. 5 0 2 $ y tn h t i n t r p rynoaie . s al o iv ld t t et el n d c me t'; ofv F d Na ' s o p o el trz d . h l n t n ai ae h md ryig o u n .) W l . e . tl . ' Mo t. sn, 3 F. u p. d 1 3 1 6( . Va 2 1, f 51 F. p' 3 6(t Ci. rg As ' 8 0 S p 2 5 , 6 W D. . 01 ) afd 2 Ap x 3 4 h r 2 3 . wa as t ec s i W ofa Bemet plitfsalg t a S e h n sg e t esc n 01 )As s lo h a e n l nd r t an if le e h t tp a in d h e o d pa oft s tt t t seea nt ntdocl ntwhe t frtpa wasnota tc t i. ge he ubs iu e nlt ppoi me tme n he is ge ta hed o t Howe r t co ti bot c s sf ve , he ur n h a e oundt tt ts tt et u t e a nt e wass ilvai ha ha ubsiut r se ppoi m nt tl ld be a e t r i no r qui e e t tdocz e sbe s a ed t t rf pr rnot rza i Se c us he e s e r m nt ha lm nt t pl oge he or ope a i ton. e Be t,201 W L 135 46,a * (û t h W ol s sedt tt l l to ..ha t t nne' 2 t 45 t 7 ç houg Al f ugge t ha he alegain .t t he wo pa sofanotrze doc n weeno e cue i t s mepl ea t s tme ( yqcal ge ai d ume t r t xe t4 n he a ac t he nme i , ma lg ji oquesi whehe t doc nthadbe ne c e pes nal i fonto t notl 't si nt ton t r he ume e xe utd ro ly n r f he ay hi s no e o g t s r ieamo int d s s . ( u tn W of 8 0F. u p. d a 1 5 ) M o t t n u h o u vv to o imis' q oig l, 3 S p 2 t 6 ). s ' i mpora l pli if ha no pld s t intf cua alegai nst s tnty, antfs ve t e ufk e a t l l to o how t tt s tt e ha he ubsiut tuse a nt e doc ntdi notac uz t l sa et i e to oft pa te .Se W ol,803 r t e ppqi m nt ume d c a ey tt he ht n i ns he ris e f F. u p 2 a 1 6(-h d c me ta p itn PFC a s b tmt tu te r g r ls o wheh r S p . d t 6 çf e o u n p on ig l' s u si e r se , e ade s f te i p g sweea tc e wh ni wa e e u e , a t rdt itn o b t (h ln e ' a sg e j t a e r ta h d e t s x c td c p u e he n e t f oh t e e d rs s in e s a dP t b b u d b i.) Th rf r ,h c u t id ta panif h v fie t alg n FC o e o n y t'. ee o e te o r fn s h t lit s a e ald o le e ' f s fc e f c st s ufii nt a t o how t tPFC' a nt nta s tt e tu t wasi ld. ha S ppoi me s ubsiut r see nva i I sl t c ti t tCo Im us f i be aus pli tf sdo notha sa ngt n lm, he our tnds ha unt t a l c e' a n if ve tndi o l c le t vai t oft s tmt t se a nt nt a e ni t ydi ha sa i halnge he ldiy he ubsi e nlte ppoi me , nd, ve f he d ve t/dng, t c he ompl i doe no c an s fcintf cua alegai t unde mi t a nt nt ant s t ont i ufi e a t l l tons o r ne he ppoi me . Ac r ngl t c t l gr ntFr eM a sm o i t dimisa t Cot 1oft c co di y, he our wil a eddi c' ton o s s s o mt he ompli . ant b. C ountI :B r ac ofC ont t I e h rac I Count1 oft co ait pl i if a g t tFr ddi M a br a he a s pa ae n 1 he mpl n , antfs r ue ha e e c e c d e r t co r c wih pl ktfs s cii lyt rwrte a i a i f al n modii a i Fr ddi nta t t ai if , pe fcal hei itn pplc ton or oa fc ton. e e M a co e t tt scli f isbe aus pli if ha nots fce l alege t tt r wa c nt nds ha hi a m a l c e antfs ve ufi inty l d ha he e s a sgned a e m e bewe n t pa test ts r e asa l n m odii to ny i gr e nt t e he ri ha e v d oa fcai n. Unde Vigi alw,apa t cli i br ac ofc r c m us e tbls t eee e nt t r r ni a ry am ng e h onta t t sa ih hr l me s o p e al ç 1 alg lye f r e b eo lg t n o ad fn a tt aplitf, 2 t ed f n a ts rv i:& ) e al n o c a l bi ai f ee d n o anif ( ) h e e d n ' ( o vo ain o b e c o t a o iain a ()ij r o d ma et t ep an ifc us db t e ilto r r a h f h t bl to , nd 3 n u y r a g o h litf a e y h g brac ofoblgain. St ieContnui Cae. v.W rM 671S. 2d 1 1 ( .2009) e h i to ' mrs ' i ng r LLC iht E. 32, 35 Va . I a ton,a lc r c sr a e t t pm c e ofr a e t t- i l ng am orgagele mus n ddii 1 onta t elt d o he has e l sa e nc udi t i nt b i wrtn t s tsyt esa eo ga d . . d An j 1 - 6 . t esmet k n, n e n iig o aif h tmt f u s Va Co e n. 12() By h a ô e a y m odii a i ofa m o t ge a e m e i no e or ea e t l s i i i wr tng.Se Li a v. fc ton r ga gr e nt s t nf c bl m es t s n ii e nds y M c a n yAso s, 31S. 2d5 3 5 5 7 ( . 0 )(çW q e . ac nr c i r q ie t b Ene r e s c .5 E. 7 , 7 - 6 Va 20 0 ç h n . o ta t s e urd o e g . i wrtn pls n t ( r iijCo ej1 - , n mo i to t t a c nr c mu tas b i n iig t ua t o Vigna d 12 a y dt in o h t o ta t s lo e n r ka m iiga dsg e b t ep ryt b c r e o h sa e t'; e as M dn sv. tn n in d y h a t o e hag d r i g n .) s e lo ' ni BAC Ho me Lo nSe vcn LP, . : 1 6 , 01 W L 3 3 9 , t* n. ( t e tn Plitf i a r ii m No 2 1 CV4 8 2 2 8 5 0 a 8 5 t he x e t anif s To aleg ng ave balc r c t pe ne l modiy herl n e ss s h ac r c woul beba w d l i r onta t o nna nty f oa xit , uc onta t d r i Vignab t sauio fa s' M o e ve,e esa et e n o lg to t p o i eo n r i i y he tt t f rud . ). r o r lnd r r md r o b iain o r v d r ac e al modii a i r ue tfo aborowe .Se Pa sv. C M org.N o. 1 c 1 c pt oan fc ton eq s r m r r e ni PN t , 2: 4- v- 42, 2 4W L 3 3 5 , t* ( D. . uy7 2 4 (C h r i noc n rcu lo lg to fra 01 7 5 31 a 6 E. Va J l , 01 ) Er ee s o ta t a bi ain o s r i e t ofe ahomeowneral n m odii ai howeve ,a t an i vi lc nnotfl e vc r o fr oa fc ton, r nd hus ndi dua a ie s ta i ta l nde f f iur t e t ri t t r vi w ,ort pr es a l n m odi i t on ui ga ns e r or a l e o n e n o, o e e o oc s oa fca i a ee nt- net rvi br a h ofc r c norvi br ac ofdu y ofgood f ih a f i gr me ihe a e c onta t a e h t at nd ar d aig' e ln ). I t i t ntc s pl i if a l ge t tt y s it d a w rte a i a i f a l n n he ns a a e, a ntf s le ha he ubm te it n pplc ton or oa m odii to a t tFr ddi M aca ove t sa i a i a ç e ilz t af r s i fcai n, nd ha e e ppr d hi pplc ton nd ç mora ied he o e ad m a p o l' mpl!51 P an if f rh rcam ta t el a mo iiainr s id dt e p r va. Co . . litfs u te li h t h o n dfc to e cn e h ' f ecos ea pr de f r t r to ofpl i if 'r or owne s p oft i hom e. n s or l ur nd ovi d or eso ai n antfs ec d r hi her l uppo t r oft s al ga i ,pli if a tc d t t c he e le tons a ntf s ta he o he ompl i aha ant ndwrte l n mod scai n r que t itn oa i to e s; howe r t y di noti udea wrte l n modii a i ag ee e toran wrte r s ns ve , he d ncl ny itn oa fc ton r m n y itn e po e fom Fr eM a a t t pli if 'l n m odi to r que t Thec t le st t i t r eddi c s o he antfs oa fcai n e s . our bei ve ha , n he c pl i ' c r ntf r ,pl ntf shave f ie t e t bls t fr tel m e o t i b e c of om a nts ur e o m ai i f a l d o s a i h he s e nt f he r r a h c n rc cam i .Gha avai a de f r e b ec nr c t mo iy gh ijla e se a o ta t li . ,t t ld n n o c a l o ta t o d f t er o n xitd, nd e t t tt pa te m um a l ag e d t m od fc ton w a e f tve ' M c nni v. C H o e Loa ha he ri s ly r e he iia i s f ec i .' l s BA m n S r iic LP, . : 1 6 , 01 W L 3 3 9 ,a * ( D. . a 1 , 01 ) E he al a e vcn e No 2 1 CV4 8 2 2 8 5 0 t 6 E. 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A ccor ngl , F e deMa 'moini ga tdwiirs c t Co n 11 rne 2 o l A ' d. C ountI :Bre h ofI pled C o nant o G ood Fa t a Fai D e i V ac m i ve f i h nd r alna I CountI pl i if cai t tt no ea de d oft s conti d a i i n V, antfs l m ha he t nd e nzt a ne n mpled c na tofgood f t a f i deai a t tFr eM a br a hedt i id co na ove n aih nd ar lng, nd ha eddi c e c he mple ve ntby frco igo terh me l rs ns, e deMa cne d tâ ismpye rie isrg t oe lsn n h i o .n epo e Frd i c o tn s h tt i l xecsd t ihs unde t not a de o t s,a t ts h e r iei nota tona ea abr c ofan r he e nd ed f nzt nd ha uc xe c s s ci bl s ea h i i c na . mpled ove nt TheFourh Cic tha he dt tc ta t go nz d by Vigi al w do c ai a t r ui s l ha on r c s ve e r ni a ont n n i i d c na ofgood f ih a f i de lng. eW ol,51 F. mple ove nt at nd ar a i Se f 2 App' a 345; Ve miult . x t Va. r c ie Lt V. . Gr c & Co,1 6F.d5 5 5 - 2( t Ci,1 2 )Ho v r ç oi idd t d. W R. a e . 5 3 3 , 414 4h r 9 8 . we e ,s mple uy n a ieswih r s c t a tviy gove nedby e e sc ta t lt r s' Skilt r I v. e rs t e pe t o c i t r xpr s on r c ua e m . lso ms nc. El c. ' DaaS s. t v .LLC, 6 F.u pz 61 , 2 ( D. .0 9 (iigW ad'Eq i .n . Ne 6 6 s p .d 0 6 0 E. 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Vaz anav. li or ea h he mpled ove nt at nd ar ai ' ); z Cii o ta e I c, 7:2 0 7 2 3W L 2 2 0 2 a * ( . Va Jme4 2 3 tM rg g . n .No. 1 CV0 49 , 01 4 3 9 , t 4 W D. . t , 01 ) ( imisn b e c o i idc v n n cam wh r t ep an ifteiso t es mealg to s ds sig ra h f mple o e a t li ee h litf G le n h n le ain r unde l nghe cai sf br c ofc r c i t pr vi c st s ryi r l m or ea h onta t n he e ous ount o uppor he c am f r t r li o br a h oft i i d c na tofgood f ih a f i de i ' a t compl i i l sno ec he mple ove n at nd ar alng,' nd he ant nc ude algai t tt lnde e rie isc r t dicei i ba fih) M o e r t t le tons ha he e r xecsd t ontacual srton n d at . r ove ,o he e e tt tpl i if r y on Bour l i v.J or n Chas Ba N . i t i opposton t t xt n ha antfs el de as pM ga e nk. A. n her ii o he m oto t di m i s t c tfndst ts h r i nc i m i pl c I t tc e, he bor ow e i n o s s , he our i ha uc ela e s s a ed. n ha as t r r cai t ts wasi e t de a ta s eque l b e c d he oblgai unde t not l med ha he nduc d o f ul nd ubs nty r a he r i ton r he e a de d oftus a trt l nde t d he t ts ha t de a ti or rt be ei i ef al n nd e r t fe he e r ol r ha he d o f ul n de o lg bl or oa m odi ai Bour l sv.J or n Cha eBn N . , 3: 0CV670,201 W L 5 408 a sc ton. deai pM ga s nk. A.No. 1 2 40 4, t * 5( D. . v. , 01 ) TheCo r f u dt ts c cam wa s t in t wi tn a 4- E. Va No 5 2 2 . u t o n ha u h li s uf e t o t a d k hs m oton t di m i s be aus t pl i ifs i o s s c e he a ntf howe t tt l nde a t d unr s bl a i ba d ha he e r c e ea ona y nd n d f t I a *5.I t sc e pli if aleg y s htal n modii a i afe t y ha aih. d. t n hi as , a ntfs l edl oug oa fc ton tr he d def ule on t i no e a a trFr ddi M acha f e os d on t pr pe t The e a eno a t d he r t nd fe e e d or cl e he o ry. r r ale to t tFr ddi M a i uc d pl i if t de a torot wie a t d i ba f ih.Fi ly, lgai ns ha e e c nd e antfs o f ul her s c e n d at nal S ete t en t no t ed e o tu tce t lqad t o t ep r o Fr d i M a )t f cltt a d ih r h oe r h e d f r s raed u y n h a t f e de c o a ii e n a l m odii ai n.' oan fc to 'Cook v.Cii nanca .I .N o.3: 4CV00007, 4 W L 20 070,a * tFi il nc, 1 201 40 t 6 ( . Va M a 1 , 4 . e eo e tec u t o ld st tpanif h v fie t pa i y W D. . y 6 201 ) Th r fr ,h o r c ncu e ha litfs a e ald o lusbl e tbls t tFr eM acbr ac d t i id co na o g f t a f i de lng. sa ih ha eddi e he he mple ve nt f ood aih nd ar a i Ac or ng y,Fr eM ac sm o i t dim isi g a e a t Co mt1 c di l eddi ' ton o s s s r ntd s o t V. 11 1. Pl i if 'R e s f Lea 'o Am e a ntf s que t or ve t nd It io n he r pposton br e ,pl ntf ss m a y r que tl ve t n e t com pl i i t ii i f ai i f um dl e s ea o m nd he a nt n he e ntt tt c ur gr nt t m o i t dim is Att he dng ont m oto t dimi s ve ha he o t a s he ton o s s . he a he i n o s s , pl n if 'c aitf s ouns las a ke t c t ora to ltmet c e lo s d he our f ddii na i o onduc dic r a t t t s ove y s o he e se eofawrte l n m odii to docl nti s xit nc itn oa fcai n tme n uppor ofCot I . e eM a oppos t mt 1 Fr ddi c es plitfs rq e tf rla et a n , ruigta s hrq e t sf tl a dp eu iil anif ' e u s o e v o me d a g n h t uc e u s i ' i n rj dca. u é UnderRul 1 oft Fe r lRul ofCi lPr ed e,apa t m a a e ispl di e 5 he de a es vi oc ur ry y m nd t ea ng t e a am a trofc s 'Wihi ace t n tm efn ea t r a tr wiht ço t onc s te our e' t n rai i r m nd,he e fe , t he çpposng i p ry' m itnc nsn o t ec u tsla e'Fe R. v P. 5a . ec u tçh udfe l gve a t s te o e t r h o r' e v . d. Ci . 1 () Th o r < o l r ey i ' s la ewh nj tc s r q rs'Fe R. v. 1 ()2 , n Se v t n n s ul b d r e e v e usie o e uie , d. Ci P. 5a () a d d a e o me d ho d e el d ' l i o l wh nt a nd n wo l b p eudca t t eo p sn p ry t eeh sb e ba fih ny e he me me t u d e rj iil o h p o ig a t,h r a e n d at on t pa toft m ovi pa t ora e he r he ng ry, m ndme woul bef tl 'M ati Ca t lM gmt Fund. nt d u ie. ' rx pia . LP v Be rng i I c, 7 F.d 1 2 1 3( t Ci. 0 ) . ai pont n .5 6 3 7 , 9 4h r 20 9 . l t sca e, n r vi o t r co d, hec tc l st tt r ue tmus be n hi s upo e ew f he e r t our onc ude ha he eq s t alwe . eei n ba i f rtec u tob l veta a a n me two l b p eu iil r h t lo d Th r s o ss o h o r t ei h t n me d n ud e rj d ca o t a e t r i a ba f ih on t pa to t pl i if . n addii ' i pl ntfsa e t i co pli he e s ny d at he r f he antfs I ton, f ai if m nd her m a nt t i udeaddii na aleg tonsast t e se e ofawrte l nm odik a i ag ee e , o ncl to l l a i o he xit nc it n oa t ton r m nt to ea n me t wo l l eye a l t i cam t wi tn r ve u d rRue 1 b ( ) h s me d n s u d i l n b e her li o t a d e iw n e l 2()6 . k hs The e or t co tbei vest ts h n e e t wo d notbef tl .Fort s r s ns t r f e, he ur le ha uc m ndm n s ul u ie he e ea o , he c tw ilgr ntt pl i if 'm o i f l a t a e Coun 1 oft c pl i a w il our l a he a ntf s ton or e ve o m nd t 1 he om a nt nd l al w pl ntfst e ge i lmie dico r a t t exit nc ofal n modii to lo ai if o nga n i t d s ve y s o he se e oa fcai n a e m e wih Fr eM ac gr e nt t eddi . Concl on usi Fort f egoi r s ns Fr ddi M a sm oto t dimi swilbegr nt d ast Cou s he or ng ea o , e e c' in o s s l a e o nt 1 11 a I a wilbe de ed a t Count1 t al w pl i if a o , 1, nd V nd l ni s o 1 o lo antfs n pporuniyt e gei t t o nga n lmie dicove y ast t e se eofa l n m odii ai n c ta twih Fr eM a Pl i if ' i td s r o he xit nc oa fc to on r c t eddi c. antfs r ue tf l vet fl a n e d co a n wilbegr nt d. eq s or ea o ie n m nde mpli t l a e TheClr i die t d t s ndcopisoft sm e a um opi o a t a o pa ng ek s rce o e e hi mor nd ni n nd he cc m nyi o de t a 1c r r o 1 ouns lofr c d. e e or DATED : ls iq A d yo Mac , 01 Tl i a f rh 2 6. Chi Unied Stt DititJ e t a es src udge

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