Innotec LLC v. Visiontech Sales, Inc. et al
Filing
132
MEMORANDUM OPINION. Signed by Senior Judge Glen E. Conrad on 7/20/18. (hnw)
I THE UN I
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TED STATES DI
STRI COURT
CT
FOR TH E W ESTERN D I
STRI O F V I I I
CT
RG N A
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nt a t ncl ng he e m
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e
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11
1.
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On M ar h 1 201 t de e nt a we e lm ot c' c pl i ,a V i i e h fl d a
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ount r ai ag ns l e a Ti
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t
h he
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r d he s r s
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t e
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636( ()B) a die t t dee nst fl anymotont a ndt a we ,deens ,a
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rod.
o e m nde e ng ncl s he olowi ddii l e e :
La k of St ndi
c
a nc.
Pl i if I e , LLC i not a pa t t or a s g t y t t s
a ntf nnot c
s
ry o
i na or o he oc l d Exc us viy Agr e e a has no s a ng t as e t a
ale
l it
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t ndi o s r ny
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am r e e
ed
rsng
r he
l it
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eem .
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bir i
The Excl i t A gr em e c nt i a bi ng, m a t r
us viy
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Propos A m . De ens !! 1 - 2, ke No. 2.
ed
f es 1 1 Doc t 53- 2
2Th ma itaej d eh sise arp r i whih h rc mme d t ttec utga ttedee d ns
e gsrt u g a su d e o tn c e e o n s ha h o r rn h fn a t'
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4
l t m ea tm e t pa t e e
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af r 6, 8, n t
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e.
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Fe uar 1 201 J
br y 2, 8, udgeHo gr nt d l t ' m o i t c
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i
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Febnl y 12,2018 or
ar
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. pons t Feb.12,2018 D i O r D ocketN o.
es o
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8, f e he our ld n he or ntone
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he l n tv , o o e r i to s o u t f n oe ' o lit n e k n u g n
e
r
o t epe dng o s mmayj g n ,hed fn nsag et tlnoe d e n th vesa dng
n h la i s r u r ud me t t ee da t r u ha n tc o s o a tn i
t s u rt Exc usviy A gr e e tbe us i wasnota pa t t t tc r t A le na i l
o ue nde he
l i t
e m n ca e t
ry o ha ontac . t r tve y,
t de e nt a gue t tl ec ca t s ek t e or e c r t lo i tonsa i i f om t
he f nda s r
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r s ng r he
Exc us viy A g e m e wihout c pl ng wih t a bir ton pr son c a ne t r n. l
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us viy
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eve e nd ef r e o r ta i s he
l i t
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pl .
t
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nnot
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Und e s i ca e a ,t c tm us fr t c i r t de enda s m o i t c pe
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r tai n s o
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go r t r g s a r ponsbiii s of t pa te w ih r s c t a a bir ton
ve ns he i ht nd es
i lte
he ri s t e pe t o n r ta i
agre nt Patn Gr nc & Pa ng l .v.Ska ka U. Bl .l ,380 F.d 200,20 (t
e me . te adi
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e
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l p.
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i
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t
pr de ha it n g e m n s o r t a e on r r i r sng
n xitng ont a t
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s l
ld, r evoc bl ,a e or ea e,s ve upon s h gr
a e nd nf c bl a
uc ounds as e s a l w or i eq t
xit t a
n uiy
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or he evocaton of any cont act'' Dean W it Reynol l v.Byr , 470 U . 213, 218
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ter
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d
S.
( 9 5 ( u tn 9 U. C.j 2 . $ is tr ,te Ac e v s n pa e fr t e ecs o
1 8 ) q o ig
S.
) ; t ems h tla e o lc o he x rie f
By
di c e i by a di t i t c t b i t ad m a t s t tdi t i t c t s l die t t pa te t
s r ton
s rc our , ut ns e
nda e ha s rc our s ha l r c he r i s o
p o e t ar t a i o i s es a t w hi h a a bir ton a ee e ha bee s gne '
r ce d o bir ton n s u s o
c n r t a i gr m nt s
n i d.
'
(mphass i orgi ) (ii 9 U. C.jj
e
i n i nal ctng
S.
A c or ngl k c t s d ad es t
c di y, t our houl dr s he
a
a bir biiy of t pl i ifs cli a t oute of t ltga i ' R evna v. l ' Bank of
r ta lt
he antf ' am t he s t
he ii ton.
'
nt l
Commece 839F.d 373,378(t Ci.20l .
r ,
3
5h r 6)
I de di a m o i t c pel a bir ton, t c ts û ol i s r c l lm ie t
n ci ng
ton o om
r ta i
he our ' i e s ti ty i t d o
r
de e m i ng a bir biiy a e or ng ag ee e s t a bir t ,l a ng t m e is of t cl i
t r ni r t a lt nd nf ci
r m nt o r ta e e vi he rt
he a m
a any def ns s t t a bir t . Re
nd
e e o he r t a or' publc ofN i a ag v.St nda d Fr tCo. 937 F. d 469,
'
i
c r ua
a r ui
,
2
478 (t Ci.1 ) d- ,a tramotont c
9h r 991 .Cl
-hus fe
i o ompelabirton hasbe fl t co 'mus
r tai
en ied, he ul t
t
Cef a n f om f t r a ton'untli de e m i s a bir biiy.' Sif e v.Aut D a a Pr ce s ngs
r ri r
urhe c i
i t t r ne r ta lt ' l e
o. t o s i
l ,696 F.App' 576,577 (d Ci.201 )( i Sharfv.W el sl ' Newor Lt ,376
nc.
x
3 r 7 quotng i
lnes ntl t k. d.
F. 720,726 ( h Ci.200 ) The co tt y no atrt ss que ng,'1 ( tng Dea
3d
7t r 4).
ur k
ma t le hi e nci ' d. cii
n
W itrRe ds 47 U. a 21 ) e ni t moto i ma i t atr tve.Se i ( di
te vnol , 0 S. t 8 , ve f he in s de n he lenai
e d.hol ng
t tt diti tcour e r i r i on a def nda ' moton t dim is bef e r s vi is
ha he src
t red n ulng
e nts
i o s s
or e ol ng t
moi t compe abirtonl Ha nsv.Fihbe k, 3:7-vton o
l r tai ; wki
s c No. 1 c 00032,201 U. Dit LEXI
7 S. s.
S
1
70678,*8( . Va.Oc.1 201 (
W D.
t 6, 7) Moon,J.( tngt tt c tS tco i rt moton
) noi ha he our k
mus nsde he i
t co labirton befr r i on t moton t dimis' ( ttons omit ) Fort s
o mpe r tai
o e ulng he i o s s' ciai
)
ted .
he e
r as , he cou tw ilfr tco i rt de e n s m oto t c pela bir ton ofCount1
e ons t
r l is ns de he f nda t ' i n o om
r tai
.
The U nie St t Cour of Appe l f t Fourh Cic t has he d t t a pa t c
t d a es
t
a s or he
t r ui
l ha
r y an
c
ompelabir to unde t FAA i i esa ihesf elme s:û 1 t e se ofadiput
r tain
r he
f t tbls our e nt i ) he xitnce
(
s e
be wee t pa tes ( awrte a ee ntt ti l esa a bir ton pr son whi h pu pors
t n he ri , 2) it n gr me ha ncud n r ta i ovii
c r t
t c rt diput,( )t r ai hi oft ta a ton,whih i e de e byt a e nt
o ove he s e 3 he eltons p he rns ci
c s vi nc d he greme ,
t i esae orf ei commece a ( t fiur ne ec or rf a oft g ai if t
o ntrtt
or gn
r , nd 4) he al e, gl t eus l he pl ntfl o
a birt t diput ' Ad ns v.La Rea l ,303 F. 496,500- ( h Ci.2002)
r tae he s e.
' ki
bor dy. nc,
3d
01 4t r
( tton a i enalquotton maks omit . l t s c s ,l e c ess t scond
ciai nd ntr
ai
r
ted) n hi a e nnotc ont t he e
el m e t a gui t t ba ed on t de e nt ' pr ed a e
e n , r ng ha , s
he f nda s opos m nded a w e t Count 1 û he
ns r o
,t
t
a bir ton pr s on w oul no a y t t s di put ' Se Pl' Br i Opp' 1 D oc tN o.
r ta i
ovi i
d t ppl o hi s e.
' e .s . n
n 3,
ke
l1 l t c aler tve y a g t t t de e n s w a ve t r g t enf c t a bir to
0. nno e t na i l r ues ha he f nda t i d he i ht o or e he r t a i n
pr s o Fort f l i r s ,t c ttndsI t c' a g e sunpe s i
ovi i n.
he olow ng ea ons he our i
nno e s r um nt
r uasve.
A.
Enf
orceabiiv ofthe A rbiraton Provi i
lt
t i
s on
I is fr t a gum e ,w hi h i s m e ha difc t t f l l e a
n t is r
nt
c s o w t f i ul o olow, nnot c ppea s t s
r o ugges
t
t t by a s r i t t l e l c sa ng t s unde t Exc usviy A gr e e , t
ha
s e tng ha nnot c a ks t ndi o ue
r he
l it
e m nt he
de e nt a e ba r f om e o c ng t a e e ' a bir ton pr s o a ns I ec Thi
f nda s r r ed r
nf r i he gr em nt s r ta i
ovi i n gai t nnot . s
agume i wihoutmei f a l s t e ra c .Fis,Seve i abirtc weei itnt
r nt s t
rt or t eat hre e sms rt k j n f r taim r nconsse
g
wi oh rd fn e gas db t ed fn a tj Rul 8d ( )p o i e t ta ( p ry ma saea
t t e e e s s r ie y h e e d n s, e ( )3 r v d s ha a a t y tt s
h
m a s pa a e cl i s or de e e a i has r ga dl s of c i t nc '' Tr xysN .A m .LLC v.
ny e r t a m
f ns s s t , e r e s
ons s e y.' a
Evrz ClymontStçl I ,No.109-va a
e , nc.
: c 00684,2011U. Dit LEXI 5
S. s.
S 2041,a *4 ( De.
t D. l
M a 1 201l ( i Fed. Ci P.8d)3).
y 6, ) quotng
R. v. ( ( )
Sec
ond,t Supr m e Cou thas m a c e rt t$ pa t s c le t a he pr son
he
e
r
de l a ha $ ry' ha l nge o not r ovi i
a
oft c r t or t t c r c as a whol does notpr ve a co tf o e or i a s c fc
he ontac , o he ont a t
e,
e nt
ur r m nf c ng pe ii
ag e me t abirt ' Re - ce e,W .I v.J c on,561U, 63,70 ( ) Thec t
r e nt o r tae.' ntA- ntr , nc. a ks
S.
2010 .
our
m us Ct an ar t aton cl e as s abl fom t contacti w hi i appears and enf ce i
t ireat
bir i
aus
ever e r he
r n
ch t
or t
accor ng t is t m s unl s t pal y r stng arbir i s t l chalenges t
di
o t er
es he
' esi i
t
taton peciicaly
l
he
e o ce biiy oft a bir ton cl us is l . G r nie Roc Co.v.l ' Bhd.ofTe m s e s 56l
nf r a lt
he r ta i
a e t e f' a t
'
k
ntl
a tr ,
U. 287,301( 0) Hee,rt rt n c esi t vai t oft abirton clus is l,
S.
201 . r ahe ha ont tng he ldiy he r tai a e tef
l ec cies t t def
nnot
t o he endant own argum ent chalengi l ec' abiiy t enf ce ot
s'
s
l ng nnot s lt o
or
her
provi ons of t Excl i t A greem ent. Such argum ent how ever w hi bear on t f nal
si
he
us viy
s,
, ch
he i
diposton oft u ryi dipu e,a epr ry r s r d f t a bir t a do notpr cl
s ii
he nde l ng s t r ope l e e ve or he r taor nd
e ude
e or m e of t a bir ton pr s o Se M ur ihi v. Shutl Expr s ,l , 71 F. 1
nf ce nt he r t a i
ovi i n. e
it
te
e s nc. 2 3d 73,
18 ( h Ci.201 (ûn viw ofis gae e ng f ton,t s peofa moton t co l
4 4t r 3) û e
I
t tke pi unci he co
i o mpe
a bir ton i r ti t t c i r ton of c le s s c fc t t a bir ton c a e. A bs nta
r ta i s esr c ed o ons de a i
ha l nge pe i i o he r ta i l us
e
c r r agr e e by t pa te , ge r l c r t def ns t t a e a i a e t t e tr
ont a y
e m nt
he ri s ne a ontac
e es ha r pplc bl o he n ie
c rc ...ae rs r fr t fr i whih t diput uli t y wilbe r s ve ' '
onta t
r e eved o he oum n c he s e tmael l
eol d.l
',
D ockserv.Schw art be g, F.d421 425 ( hCi.
z r 433 3
,
4t r 2006)(k' SuprmeCour hasi tuced
ifhe
e
t nsr t
--
t t d oc dur ques i whi h gr o of t di put a be on is fnal di pos ton a e
ha pr e al
tons
c ow ut he s e nd ar
t i
s ii r
p e u tv l n tf r t e j d e b t fr a abtao ,t d cd .' (mp ss i o ii a)
r s mp iey o o h u g , u o n r irtr o e ie') e hai n rgn l
'
( i Howsm v.De n W itrRç ds l . 53 U. 79,84 ( ).J kev.Br ,875
quotng
a
a te ynol , nc, 7 S.
2002) es
,
ooks
F. 7l 75 ( h Ci.1 )(i ca e t aleg dee spe ti t t e ie co rc,r he
2d , 4t r 989 i us he l ed fct ran o he ntr nta t at r
Be
t s iial t t abirtonca e,he aepr rylf t t abirt f r ol i ' .
han pecfc ly o he r tai lus t y r ope l et o he r taor or es uton.)
'
Thi d,unde t cic sa es pr e ed,t f c t t l ec i not a s g t y t t
r
r he r um t nc
es nt he a t ha nnot s
i na or o he
Exc us viy A gr e e doe not pr cl
l it
e m nt
s
e ude Vi i e h f om e or i t a bir ton c a e
sont c r
nf c ng he r ta i
l us
a i tl e û hie a c r c c nnotbi pa te t a bir t dipu est y ha no agr e
ga ns nnot c. t l ont a t a
W
nd ri s o r ta e s t he ve t e d
t abirt,;td
o r tae i oesnotf l ...t tunde t g dealAr tai Ac a oblgai t
olow
ha
r he Fe r birtonq t n i ton o
a bir t a t che onl t one who ha pe s ly s gne t wr te a bir ton pr vi i '' I '
r t a e ta s y o
s r ona l i d he it n r t a i
o s on.' nt l
Pa rCo.v.Sc be s e M ac ne & Anl e GM BH,206 F. 411 41 ( h Ci.2000)
pe
hwa dis n shi n
aa n
3d , 6 4t r
(leai i orgi l (uoi Fis rv.I ' Ba 28 F. 231 233 ( Ci.1 ) I t d,
atrton n i na) q tng se ntl nk, 2 2d ,
2d r 960). nsea
'r elesa ihe c
twll- tbls d ommonl prncplsditt t ti a a opraec eanonsg t yc
aw i i e cae ha n n ppr it as
inaor an
e o ce orbe bo by,a a bir tonpr vi i wihi a c ta te ut by ot rpari . I
nf r ,
und
n r ta i
o son t n on r c xec ed
he
tes' d.
'
a 41 1 (mphassadde .
t 6- 7 e
i
d)
O ne such st i exi t w hen a nons gnat y i equiabl s opped f om ar ng t i i
iuaton s s
i or s
t y t
r
gui hat t s
nota pa t t t a bir ton cl us t uia e e t
r y o he r ta i
a e. t t bl s oppe pr c ude a pa t f om a s ri r g s
Eq
l el s
ry r
s e tng i ht
he ot r i e w oul ha ha aga ns a he w he hi ow n c
he w s
d ve d
i t not r
n s
onduc r nde s as e ton of t e
t e r s ri
hos
rght co rr t e t ' 1 a 41 1 ( tton a i ena quotton maksomitd) tnt
i s ntay o quiy. d. t 7- 8 ciai nd ntr l ai
'
r
te . i he
l
a bir t o con e ,t doc rne r c ni s t ta pa t m a be esoppe f om a s r i t tt
r tai n
t xt he t i e og ze ha
ry y
t d r
s e tng ha he
l k of hi s gna ur o a m i t n co r c pr l s e or e e of t conta t s ar ta i
ac
s i t e n
te
nt a t ec ude nf c m nt he
r c ' bir ton
c a e w he he has c i t nty m a n a ne t tot r pr s ons oft s m e c r c s d be
l us
n
ons s e l
i t i d ha he ovi i
he a
ont a t houl
enf ced t benefthi .' I
or
o
i m ' d.
Appl ng t e c ept, t Fo t Cic t ha k d moe s cfcal t t ka
yi hes onc s he urh rui s t
hel r pe ii ly ha g1
nonsg t y i esoppe fom rf i t c ywih a a btai caus whe i gsse ng
inaor s t d r eusng o ompl t n r irton l e n t i e ki
or r c i sadiec benei fom aco rc c ani a ar tai clus ''R..Grfi & Co.
1 e eve r t ft r
nta t onti ng n birton a e.' J ifn
v.Be c Cl 1 Home r As' I . 384 F. 1 1 ( h Ci.2004) ( t ain i
a h ub 1
ownes sn, nc,
3d 57, 6l 4t r
alerto n
orgi l ( i l ' Pa rCO, 206 F. at418 . Thi t tke niest tano inat y
i na) quotng ntl pe ,
3d
)
s es t cog z ha
r
nsg or
s d be es o d f om de ng t ti i bound by a a bir ton c a e when is c ai s a i t
houl
t ppe r
nyi ha t s
n r ta i l us
t l m ga ns
t e sg ao y ûrs g fo te c nr c c n ann te abi ain ca s . Am.Ba kesI s
h in tr a ie l r m' h o ta t o tiig h r t to lu e'
r
'
n r n.
Gr v.Long,453 F. 623,628 ( h Ci.2006)( i R..Grfi 384 F. a 1 .
p.
3d
4t r
quotng J ifn,
3d t 62)
nons gna or s c ai s û r s f om 'a c r tco a ni a a bir ton pr s o whe t c a m s
i t y' l m a i e r
ontac nt i ng n r t a i
ovi i n
n he l i
s ek t e or e r ght cont ne i t tc r c . Thom asv.Pr r s i Le i N o.1: 7- ve o nf c i s
ai d n ha ont a t'
'
oc e sve asng,
1 c
01 ,20l U. Dit LEXI 1 651 a *8 ( M d.Oc.25,201 ;se as l ' Pa rCo.
249
7 S. s.
S 7 5, t D.
t
7) e lo ntl pe ,
206 F. a 418 ( di t tt pli ifc d notsek t e ore rg spr vi d unde a
3d t
hol ng ha he antf oul
e o nf c iht o de
r
c rc a a d t c r c' ar tai clus ) Be a et ts e mi st nau eoft
onta t nd voi he onta ts birton a e. c us he et xa ne he tr he
nons gna or s a l ga i
i t y' le tons a i t t s gna or t cou t m us e m i t und l ng
ga ns he i t y, he
r
t xa ne he
eryi
c pl i t de e m i w he heres op ls d a y. A m . nker l . r ,453 F. a 627.
om a nt o t r ne
t
t pe houl ppl
Ba
s ns G p.
3d t
l t s case,i i cl f om t com pl ntt t cl m s f br
n hi
t s ear r he
ai hat he ai or each ofcont act ass t
r
ered
i Count1 arse f om t Excl i t A gr ent cont ni t ar taton provi on. The count
n
i r he
usviy
eem
ai ng he bir i
si
i l ed kBr
s abel t each of Cont actby V i i ech - For t sal of goodspurs
r
sont
he e
uantt t Excl i t
o he
usviy
10
Aa e me . Compl 8(mpha i a d) The c ti oportsby rfr nc t pa a r phs
r e nt'
'
. e
ss dde .
oun nc
ae
ee e e he r g a
pr ce ng i, e r ofw hi h de c i t i
e di t s ve al
c s r be he i us viy A gr e e and r l t d pur ha e . I a
Excl i t
e m nt
e ae
c s s ' d. t
'
5. l par aph 1 l ec r er
n agr
4, nnot ef ences sever t m s oft Excl viy A greem ent i udi t
al er
he
usi t
, ncl ng he
pr son r quii t tal pur ha esof Vi pl y Cha ge Ada or be m a i a or nce w ih
ovi i e rng ha l c s
vo a
r r
pt s
de n cc da
t
t t r soft Se l r s quot ton da e M a c 28,201 t pr s on r rng t tpa e be
he e m
he le '
ai
td r h
3, he ovi i equii ha ym nt
m ade by w ie ta f r o bus ne s c c w he d i a c da e w ih t Seler s quo a i a
r r ns e r i s he k
n ue n c or nc t he l '
t ton, nd
t pr son s a i t t t f iur t pa f goods whe d m a be tea e as a m a e i l
he ovi i t tng ha he a l e o y or
n ue y
r td
t ra
b e c oft ExcusviyAgre ntby t Sele .1 a ! 1 I paaga 15,I e ct t
r a h he l i t e me
he lr d. t 4. n r rph nnotc ies o
t pr s on of t Exc usviy Agr em e t tpe m is a s ce s ulpa t t r c r ator s
he ovi i
he
l i t
e nt ha r t uc s f
r y o e ove t ney'
fesi t e ntt ta lws ti fld i rltont t a e me . 1 a ! 1 l pa a a
e n he ve ha ny a ui s ie n eai o he gre nt d. t 6. n r grph
1 I ecaleg t tVii ec ma t or r ofVi ayChage Adaptr kgj r ince
6, nnot l es ha sont h de wo des
vopl
r r
e s tin ela
on t Excusviy Agee t'a t tl t tle t oder. 1 a ! 1 l paa a 1
he l i t r men,' nd ha nnoec ild he r s d. t 6. n rgrph 7,
l t c a l s t tV i i e h i s f ie t m ake pa e oft i c ,a i t r o e i
nno e lege ha sont c d a l d o
ha
ym nt he nvoi es nd s he ef r n
br a h ofc r c,i udi t tr oft Excusviv Acre nt' 1 a ! l (mphass
ec
onta t ncl ng he ems he l i t
e me . d. t 7 e
'
i
a d) Conssent wih t tr of t Excl i t Agee t l ec alges t t
dde .
it
t he ems
he
usviy r men, nnot le
ha
V i i e h' ac i c tt e a û a e i lbr c of c r t' a t t i i e il t r cove
sont c s tons ons iut i t r a ea h
m
ontac ,' nd ha t s ntted o e
r
t a t ne 'f esi ur e i brngi t i t nta to asw el ast a ount d f pr uc s
he tor ys e nc r d n i ng he ns a c i n,
l he m
s ue or od t
s idunde t a ee nt 1 a ! 1 's as i a 9.
upple
r he gr me . d. t( 8, ee lo d. t
D e pie ha ng s d t e o ce varous t r s oft Excl i t A g ee e ,l t c now
s t vi ue o nf r
i
em
he
us viy r m nt nno e
c e t ti s ul notbebound by t abirto pr son,whih br dl c r Sg ny
ontnds ha t ho d
he r tain ovii
c oa y oves tal
c r ve s e or diput s a i i outof orr a i t t s A g ee e .' Com pl Ex.B.at3,s e
ont o r i s
s e rs ng
el tng o hi r m nt'
.
'e
as Pl' Br i Opp' 1 1 (ugge tngt tt ExcusviyAgreme i kmmaeil't t s
lo .s .n
n 3- 4 s si ha he l i t
e nt s k tra' o hi
i
dipueandt tisabir i pr son s dnota y) Suc a atmptt G ai t be ft
s t
ha t r taton ovii houl
ppl . h n te o ç m he ne i
cl
of t cont and s m ulaneousl avoi is bur
he
ract
i t
y
d t
dens' i t ver st i t t t docti of
' s he y iuaton ha he
r ne
l1
e t bl e t
quia e s oppel s eks t pr ve . l ' Pa r Co. 206 F. d a 41 By s eki t enf r
e
o e nt nt l pe
,
3 t 8.
e ng o o ce
pa tc a t r s of t Exc usviy Agr m e a a s r i cl i s t tm us be de e m i d by
ri ul r e m
he
l it
ee nt nd s e tng a m ha
t
t r ne
r f r nce t t a ee e ,I e i e t bl s oppe f om denyi t t i i bound by t
eee
o he gr m nt nnot c s quia y t d r
ng ha t s
he
a bir t o pr s on c a ned t r i
r t a i n ovii ont i
he e n.
To t ex e t tl e a s a guest tt a bir to pr son,i bi ng on i,doe
he t nt ha nnot c l o r
ha he r t a i n ovi i f ndi
t
s
notc rt cl i s a s re i Coun 1 t c ti u bl t a e The c ts c us on t t
ove he a m s e t d n
t , he our s na e o gr e.
our ' oncl i ha
t cl i s a s r e i Count1a i e fom t Excl i t A gr e e f r c os a a gum e t t
he a m s e t d n
r s r he
us viy
e m nt o e l es ny r
nt ha
t cl m s do not f lw ihi t s
he ai
al t n he cope of t ar t aton pr s on. Am .Banker l Gr ,453
he bir i
ovi i
s ns. p.
F. a 63 .s e a s Am .Rec r Cor v.Com put rze The m a l aci l . 96 F. 88,
3d t 0, e l o
ove y
p.
ei d
r l m nc, nc ,
3d
93 ( h Ci. 1
4t r 996) ( i t t a smial wor d abirton pr son e mpa s tal
notng ha
i lry- de r tai
ovii nco sed kl
di put s ha ng a s g fc nt r a i hi t t cons tng a e m e ' i w hi h t pr s on
s e vi
i nii a el tons p o he
uli gr e nt' n
c he ovi i
wa c ai d)
s ont ne .
B.
W ai
ver
l ec at r tve y a gue t tt de e nt waved a rghtt y had t enf ce t
nnot le na i l r s ha he f nda s i
ny i he
o or he
a bir ton pr s on con a ne i t Exc usviy A gr e e . W hie t s a gum en pr e s
r ta i
ovi i
t i d n he
l i t
e m nt
l hi r
t es nt
s e ha ofa c os rque ton,t c tuli at l co ude t ti i wihoutm e i.
om w t
l e
s i he our tm e y ncl s ha t s t
rt
i nde t FA A , a pa' m a l e is r gh t co pe a bir ton i i ks i def ul i
k
u r he
ly y os t i t o m l r t a i f t i n a t n
t
pr ee ng w ih s h a bir ton.' Ro a M c w t v.Sa a r Cons e U SA .l . 700 F. d
oc di
t uc r t a i '' t - lary
nt nde
um r
nc ,
3
690,702 ( h Ci.201 (uoi 9 U. C.j 3) Alhough t sprnci e ofde a ti S ki t
4t r 2) q tng
S.
). t
hi i pl
f ul s t n o
a
wai r' i i 'no i ntca .' 1 û nlke s e w a ve doc r nes t c r um sa es gi ng rs
ve , t s t t de i l' d. û i om
'
u
i r t i , he i c t nc
vi i e
t a s a u or de a ta e lm ied a i lg oft f de a polcy f vorng a bir ton,a e no t
o t t t y f ul r i t nd, n i ht he e r l i a i r t a i
r to
be lg l i e r d, nd t pa t oppos ng a bir ton be r a he bur n t pr def ul. I
i hty nf r e a he ry
i r tai
as
avy de o ove a t' d.
'
( ttonsa i ena quottonmaksomit )
ciai nd ntr l ai
r
ted .
1
2
For i tnce i i y f ii t as e ta bir to as a a tr ai de e e doe no
nsa , û mpl alng o s r r tai n
s
n fim tve f ns
s t
cons iu e de aul of a r g t a bir ton. For e t r v.Pe Lyon Hom e sl . 553 F. 340,
tt t f t
i ht o r t a i '
'
r se
nn
s nc ,
3d
343 ( h Ci.2009 . tsi lry,dea a pa tcpain i ltgai wilnotal c tt e
4t r
) t mial ly nd rii to n ii ton l
one onsiut
d fut' I Ho v r $ p rywil ea tt rg t oabtain i i ço s bsa t l u i ze )
ea l. d. we e ,C at l d fulis ih t r i to f t s u tni l tl gs
'
a
r
ay i
t l iain ma hn r t a o s bsq e ty p nnt abtain wo d p eu c te p ry
he i g to
t
c iey h tt u e u n l e i r i to
r
ul rj die h a t
opposng t sa '' I (leai i orgi l ( i M a Founds,I v.Sal Cor ,
i he ty.' d. atrton n i na) quotng xum
. nc.
us p.
779 F. 974,981 (t Ci.1 ) kf dipostve deemi ton i whehe t o i
2d
4h r 985). t' s ii
-he
tr nai s t r he pposng
p ry h s s fee a t a p eu ie' RoaM c arv 7 0 F.d a 7 2 l ma ig t i
a t a u fr d cu l rj dc .
' t- la t, 0 3 t 0 . n kn h s
d tr n to ,h c u tsg i e b t f co s t 1 tea u to ted ly a d ()t ee tn
eemi ai n te o r i u d d y wo a t r:$ ) h mo n f h ea ; n 2 h xe t
(
oft movi pa t sti lore t a tviy. 1 The c twilc i rea h oft r e nt
he
ng ry' ra - in ed c i t ' d.
'
our l onsde c
he elva
f c or i t n.
a t s n ur
1.
The am ounto t de a
f he l v
Tur ng fr tt t a
ni is o he mountof t de a t de e nt fl d t r moton t c
he l y, he f nda s ie hei
i o ompe
l
a bir ton o Count I a oxi a el t r e n m ont a t I t fl d is c pl l .3 The
r ta i f
ppr m t y hi t e
hs fer nno ec ie t om a nt
Fourh Cic thaspr vi l hed t td deay ofs ver lmont ,wihoutm or ,i i ufi int
t r ui
e ousy l ha t l
a
e a
hs t
e s ns fce
t d mo taet o p sn p ry s fee a t l rj dc . L-a 7 3( e ci n t esx-n o e nsrt he p o ig a t u frd cua p eu ie' p. t 0 d s rbig h i a d
'
ha fm on h dely i t ca ebef e i ast ea i l s t i co rs t o he ca e i vi
l- t
a n he s
or t d ltve y hor' n mpa ion o t r s s nvol ng
r
'
teis e .Al o g t eln t o d ly i t i c s i s me tln e ta tep ro a is e
h su ) t u h h e gh f ea n h s a e s o wha o g r h n h ei d t su
h
i s v r lc s si whc teFo rh Cic i h sfu d n ihee tp eu ie s ei (o lcig
n e ea a e n ih h u t ru t a o n o n rn rj dc , e d. c le tn
c s s,i i sgniianl s trt n t lngh ofdea i t pr vi c e i whih t
a e ) t s i fc ty hore ha he e t
ly n wo e ous ass n c he
Fourh Cic tco l d t tltga t ha wave t rgh t a bir to Se ç, ,For s r,
t r ui ncude ha ii n s d i d he i t o r tai n. ev g. m je
-
3I t err p yb it t e d fn n si dc t t a t y atmp e t watu tl h y we ep r t dt a n
n h i e l rel h ee da t n iae h t he t t d o i ni t e r e mie o me d
e
l
t i ans e a def e be o em ovi t c
her w r nd ens s f r
ng o ompelabirton,i or rt avoi an ar e t tt wavedt
r ta i n de o
d y gum nt ha hey i hc
rghtt abir t by notr sng a bir to a a afim ai defns W hiet c thasno r s n t queton t
i o r tae
aii r tain s n fr tve e e.
l he our
ea o o si he
snc rt oft sr pr s nt i çhe m ovi pa y' r s n fr dea i no r l n t t dea ti iy u r
i e iy
hi e e e aton, d
t
ng rt s em o o ly s t eeva t o he ful nqur nde
(out Cic t p e e e t' RoaMcary 7 0F3da 7 2.
F rh rui rc d n. t- la t, 0 . t 0
l
'
1
3
5 3 F3 a 3 3 (mph szn ta te mo i p ry S ie u tlt e e o tilt tl i
5 .d t 4 e a iig h t h vng a t û td n i he v f ra o ie t
wa
s
m oto t co pe ar ta i ' a t t by t tm e i r t o ye s of ltg i ha oc r e
i n o m l bir tons' nd ha , hat i , '
ove w
ar
ii aton d cu r d
i whiht g antfs ha e ge i e tnsvepr tilprpartonsl;Frs rv. erl Lync
n c he pli ifl d nga d n xe i era e ai ' a e M ril h
Pire,Fe r& Smih,l . 81 F. 250,25 (t Ci.1
ec nne
t nc, 7 2d
2 4h r 987)(i ng t tt def nts
fndi ha he enda '
f ur and- - l yea de a i m ovi t c pel a bir ton s ppo t d a f ndi of ac ual
o - one ha f r l y n
ng o om
r ta i u r e
i ng
t
p eu ie.
rj dc )
M or ove ,no hi i t r c d s
e r t ng n he e or ugge t t tt t r e n- on h del y,i a of is f
s s ha he hi t e m t
a n nd
t el,
c u e I n tct s fe a t a p eu ie TheFo rh Cic i h sma ece rt a ûmjr d ly
a s d n o e o u fr cu l rj d c .
u t rut a d la h t t ee ea ,
g
w iho m or w ilno s fce t c tt t w a ve . M a
t ut
e, l t uf i o ons iu e i r'
'
xum ,779 F. at 982. s e alo l r
2d
,e s n e
M ec y Co t.Co. 656 F. 933,93 ( h Ci.l 1 (n ba (tti onl whe t sdea
rur nsr ,
2d
9 4t r 98 ) e nc) û s y n hi ly
l
r s lsi a t lprj d c t a i ma a u tt d ea l'wi i te Ac.) Ac o dn l,t e
e ut n cua eu ie h t t y mo n o d fut t n h t'. c r igy h
h
'
l t oft de ay is l i nots fc e t m ee l ec' hea bur n ofpr ng de a t
eng h he l t e f s
uf i i nt o
t nnot s vy de
ovi
f ul.
2.
The nat and ext oft def
ure
ent he endant lti i actvii
s' i aaton i t es
Thes c n f co i tep eu ie iq iy lo st t en tr a d e tn o t emo i g
e o d a tr n h rj dc n ur o k o h au e n x e t f h v n
pa t sltgai a tvii .Se Rot- wry,700F. a 70 $A1 i t caewihdely,t
ry' ii ton ci tes e aMcla t
3d t 4.i s s he s t a he
(
m ova ' pa tci ton i ltga i a tviy a o w ilnots f c as t di pos tve que to ;s
nt s r i pa i n ii ton c i t l ne l
ufi e, he s ii
si n i
wh t e t ep ryo j ci t abtai nh ss fee a ta p eudc .'Patn 3 0F.d a 2 6
eh r h at be t o r i to a u frd cu l ri ie' te , 8 3 t 0
ng
r
'
(mphass i orgi l ( i Mi ostaeg l .v.La ii,268 F. 244,249 ( h Ci.
e
i n i na) quotng cr r t y. nc
urca
3d
4t r
2001)
).
l iily te c u tmu trj c lnoe ' rla c o t efc t a b t sd sfly b if d
ntal, h o r s ee t n tc s ein e n h a t h t o h i e u l re e
is m oto t di m i s Vi i e h' c e c ai bef e t de e nt m ove t c pe
t
in o s s
sont c s ount r l m
or he f nda s
d o om l
ar taton. See Pl' Br. i Opp' l5. A s t Foulh Cicui expl ned i Paten, i i
bir i
.s
n
n
he
'
t
r t
ai
n
t
t s
i ppr pra e t co i r ç c i t t tt m ovi pa t d d noti ta e i a s s i t tpary'
na o i t o ns de û tviy ha he
a
ng r y i
nii t n s e s ng ha
t s
def t.' Paten,380 F. at 206. Becaus t r erenced m oton w as f l by l ec,r her
aul '
t
3d
e he ef
i
ied
nnot at
t a t e d fn a t,te c u ti u a e t fn t a p eu ie r s le fo t e d fn a t'
h n h ee d n s h o r s n bl o id h t rj d c e utd r m h c e d n s
r s e i oppoyton t t moton. Se W he lng Hos ,I v.Heat Pl n oft Uppe
e pons n
ii o he
i
e
ei
p. nc.
lh a
he
r
Ohi Valy,l ,683F. 577,588 ( h Ci. 2)( di t tt movi pa t so ii
o le nc.
3d
4t r 201 hol ng ha he
ng ry' pposton
t moin fldb teplitfsc ul n t er l du o t s p o'afn igo p eu ie .
o to s i y h an if o d o b ei p n o u p l idn f rj dc )
e
e
t
Lie s ,t e c u t fn s n p eu ie aiig fo te fl g o a a s r a d
k wie h o r id o rj dc rsn r m h ii f n n we n
n
coun e cl i by t de e
t r am
he f ndan s The Fourh Cic thaspr vi l hel t ta pary' tlng ofan
t.
t r ui
e ousy d ha
t s ii
answer or com pul
sory count cl m i ûnot neces iy i
er ai s t
sarl ncons s e w ih an i ent t pur
i t nt t
nt
o
sue
a bir ton. Pat n,380 F. a 206. Tha i e pe i ly tuei aca e s h ast s i whih onl
r ta i ' te
'
3d t
t s s c al r n
s uc
hi, n c
y
s me b tno al o t e panifscamsa e s b e tt a btain. M o e v r a i Patn,
o , u t l, f h litf li r u j c o r i to
r
r o e, s n te
l n tc ( k sn s o n o p eu c aiig fo t sa p c o rh d fn a t' p etil
n oe i e o h wig f rj die rsn r m hi s e t f te ee d n sj r-ra
ma
actviy.' I
i t' d
l e s r la on t di c r c
nnot c' e i nce
he s ove y onduc e i t s c e i al o una lng. Alhough
t d n hi as s s
vaii
t
t r or r ve s t t t pa te ha e ge i e e i wr te di c r a ltga ed a
he ec d e al ha he r i s ve nga d n xt ns ve it n s ove y nd ii t
num be of di c r di put , û e e pa tc pa i n i di c
r
s ove y s es û r r i i t o n s over i not s t c e t i c t
m
y s
ufi i nt o ndi a e
de a l . Ro a- cla t 700 F. a 70 M or ove , t di c r r que t by bot s d
f u t'
' t M w ry,
3d t 4.
e r he s ove y e s ed
h i es
c r a m uliude of i s o he t n t e r l t d t t Exc usviy A g e m e . l t
ove ed
tt
s ues t r ha hos e a e o he
l i t
r e nt n he
a e e of a a s ri n t t t de e nt i pr ry be f t f om c
bs nc
ny s e to ha he f nda s m ope l ne ied r
onduc i di c r
tng s ove y
pr or tlflng t i t m oton,t c ti u bl tlc ude t tt def nt 'us of t
i t ii he nsant i he our s na e t oncl
ha he enda s e
he
d so r p o e sc usd ln tct s fe t p eu ierq ie t s p o t fn igo d ful.
ic vey r c s a e n o e o u fr he rj d c e ur d o u p r a idn f ea t
Se t (mphaszi t tt pl ntf fie t e anho t dico r c
e ês e
i ng ha he ai if ald o xpli w he s vey onduce û ul be
td k d
wo
t (he defnda ') ad nt e, or una iabl, i abirton' Patn, 38 F.d a 207
o t
e nts va ag
val e n r tai l; te
0 3 t
age' r
he scover
y
( e vi t t t pli if de
obsr ng ha he antf monsrtd t r uli di
tae i es tng sadvant ' f om t di
no
c
onduc e i t ca e)
t d n he s .
Fi al ,t c u'mu trjc I n tc sagu ntta t ed fnd nswav d terg t
n ly he o l s ee t n oe ' r tne h t h ee a t ie h iht o
t
com pelar t i by f lng a m oton t enf
biraton
ii
i o orce an aleged or s tem entagr ent whi has
l
al etl
eem , ch
snc bee de e byt c t
i e n nid he our.SeeP1' Br i Opp' 1 ( toni S tgrae utlzai
.s .n
n 6 quesi ng k
wha e tr ii ton
$ t ltgain ma hi r c d bei gi ).Alho h whehert nonmovi pary wa
of he ii to c ney' oul
ma ned'
t ug
t he
ng t s
rq ie t r s o d t a d s o i v moin ma fco it t e p eu ie a ay i,t e F u t
e ur d o e p n o ip st e t
i
o y a t r no h rj d c n lss h o rh
Cic thas cou eld ag ns a i a brghtlne nle t tt m e e flng of a dipostve
r ui
ns e ai t doptng
i -i
l ha he r ii
s ii
mo ini ihee typ eudca.RoaM csry 7 0F.da 7 4n.5(iigW h ei , 8 F.d
to s n rnl rj iil t- la t, 0 3 t 0 1 ctn e l 6 3 3
ng
a 5 0 . I ta ,ten n vngp rymu ts o t a ç cu lp eudc . .e utdt e er m.
t 9 ) nse d h o mo i at s h w h t û ta rj ie . r s le h r fo '
a
'
W heet 683 F. a 5
lna,
3d t 90. He e, l e me ey ct s t t f c t t t de e nt
r nnot c r l ie o he a t ha he f nda s
ksmula
ii tneousy agueg t tt sc s hag stl 'wihoutofe i a e a tonast ho
l r dj ha hi a e d) eted, t
'
frng ny xplnai
o w
i wa p eu ie b te fln o te poe tal ds stv moi n Pl' Br i Op n 1
t s rj dc d y h iig f h tn ily ipo iie to . . . n p' 6.
s
Cons qu l t c ti co pe l d t cc c ude on t f ct pr s e t l e has f ie
e enty, he our s m le o m l , he a s e ent d, hat nnot c
al d
t me tisb r e o s o n a t a p eu ie W he l ,6 3 F.d a 5 ;P F retr 55
o e t u d n f h wi g cu l rj dc .
ei 8 3 t 9l . o r se, 3
ng
L
.
F.d a 3 3 (o ldngta t panif s fe e a t a p eu iewh r t ed fn a tsu eo
3 t 4 c ncu i h t he litfs u fr d cu l rj d c e e h e e d n ' s f
t ltga i pr e s pe m it d t de e
he ii ton oc s
r te he f ndan t de ea s ve al of t pl i t fs' c a m s on
t o f t e r
he a n if l i
s
ummay j
r udgme a f c t m t rvea t rtil sr t yl Fr e ,817 F. a 252
nt nd ored he o e l hei ra taeg ; asr
2d t
(ea hi t s meco usonwhees vealoft pli ifscai weedeeae ons
r c ng he a
ncl i
r e r
he antf' l ms r f td ummar
y
j d me t ve t y a sb f r t ed fnd n d ma d dabtain .
u g n o r wo e r eo e h ee a t e n e r irto )
Fo t s r as ,t co ' co l s t t t a bir ton pr son of t Exc usviy
r he e e ons he ul nc ude ha he r ta i
t
ovi i
he
l it
A g e m e t i enf c a e aga ns l e , t t t c a m s a s r e i Coun I f l w ihi t
r e n s or e bl
i t nnot c ha he l i
s e td n
t a l t n he
s ope of t pr s o a t t t de enda s di not wai t r g t c pel a bir t o
c
he ovi i n, nd ha he f
nt d
ve he i ht o om
r t a i n.
Accor ngl t courtw ilgr t def
di y, he
l ant he endant m oton t com pelar taton of Count1of t
s' i o
bir i
he
c antand sa f rhe j cilpr e ngswih r pe tt t teount Se Choi -Hot s
ompli
ty u t r udi a oc edi
t es c o ha
. e
cç el
l ' , l v. BSR Tropi
nt l nc.
cana Res a I ,252 F. 707,709 ( h Ci.2001 (sl he FAA
ort nc.
3d
4t r
) ûg-q
-
16
rq ie a dsrc c u t...t sa j dca p o e dng iv li g is e c v rd b wrte
e ur s itit o r
o ty u iil r c e i s n ov n su s o ee y i n
t
abir tonagee nt.)( tng9U. C.j3) Thedee nt'aler tvemoin f j me
r tai r me s' cii
'
S.
.
fnda s t nai
to or udg nt
o t epla n so frs mmayj dg n a t Cou tlwilb d ne wih u p eu iet te
n h e dig r o u r u me t s o n
l e e id t o t rj d c o h
de e nt 'rghtt r i e t i s sdurng t a bir ton pr ce di .
f nda s i o a s he s ue
i he r ta i
o e ngs
I
l.
R em ai na Cl m s
ni
ai
The de enda s ha not moved t c
f nt ve
o ompela bir ton as t a o he c t i t
r ta i
o ny t r oun n he
com pl nt a ne t r pary ha a gue o s
ai , nd ihe
t s r d r uggese t t any of t r m ai ng c a m s or
t d ha
he e ni
li
co ecams wo d be s bj t t abir to The Fourh Cic t ha rcog z t t
untrli
ul
u ec o r tain.
t rui s e nied ha
kll oreme of a e nt t abir t unde t Fedea Ar tai Ac ma rquie
ûenf c nt
greme s o r tae
r he
rl birton t y e r
pi c m e ltga i a t d i i t say t ltga i ofnon- r ta e c a m s or i s i a
e e al ii ton, nd he ec s on o t he ii ton
a bir bl l i
s ues s
m at rlr y wihi t dititcou tsdic ei t c r is doc t' Am .Re
te a gel t n he src
r ' s r ton o ontol t
ke .
'
cove y Cor ,
r
p.
96 F. a 97.s e a s Chore Ent r . I v. i ke sBa bec Res s ,l ,807 F. 553,558
3d t , e l o
l y e sp nc. D c v' r ue t . nc.
3d
( h Ci.2015 (t er c zet trquii t pate t ltgaei t difrntf umsmay
4t r
) iW e ogni ha e rng he ris o ii t n wo fee or
be i fci nt and coul l t cont ctng r t Butt s out e i m andat by t Feder
nef i e ,
d ead o
li i esuls.
hi
com s
ed
he
al
A r t a i n A c , w hi h r ui e pi e e l ltga i whe e as he e, t a e m e s c l f
bir t o
t
c eq r s ec m a ii ton
r,
r he gr e nt al or
a bir ton of s
r ta i
ome cli ,bu notot r ....W e la i t t ditit c ts dic eton
a ms t
he s
e ve t o he src our' s r i
wh te t sa tefa c ie s gt eqcamsp n i c ncu ino teabtain. .
eh r o ty h rn h s e ' oh r li e dng o lso f h r irto '
)
Be a e ne t r sde ha a e s how t r m a ni c ai ss d pr ee i t e nt
c us ihe i
s ddr s ed
he e i ng l m houl oc d n he ve
t t courtr red ar t aton ofCount1 t courtwilper i t partest s i addii
hat he
equi
bir i
, he
l m t he
i o ubm t t onal
br e i o t s i s . Spe fc l t pa te s l hav t tl A u t 3, 201 t tl
i tng n hi s ue
cii aly, he ri s ha l
e mi
gus
8 o ie
sm ula ous bre s a e sng t is of whehe t r mai ng cli s s d be sa
i tne
if ddr s i he s ue
t r he e ni
am houl
tyed
pendi t r ol i of t ar taton pr
ng he es uton
he bir i
oceedi rel ed t Count 1 See.e. , Tr d v.
ngs at o
.
g. ouar
Dikev' Ba be ue Ress.1 , No.8: 4- v- 703,201 U. Dit LEXI 2013 a * ( . d.
c s r c
t . nc.
,
1 e 01
6 S. s .
S
4, t 3 D M
17
Feb.l 201 (ddr sngwhehe t sayno a bir ecli afe havi t pa tesbreft
9, 6) a esi
t r o t n-r tabl ams tr ng he ri i he
is .
sue)
Concl on
usi
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18
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