Allen et al v. Fitzgerald, III

Filing 9

MEMORANDUM OPINION. Signed by Chief Judge Michael F. Urbanski on 12/11/2019. (jv)

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l n, nd
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t y anc
gans he
Vig ni a t ne ,Che n, e a LSC. Fis,a la squesi whe he t ba m l cy
t i a tot ys
z M n, nd
3 t t ppelnt
ton
t r he nl pt
cour ha t a hort ,et r i r ntor sa ut iy t i pos t pr dc r voc éon on
t d he ut iy ihe nhe e
t t orl, o m e he ac e e a
ator yst tdi nota a i t W e t r Diti tofVig ni Se ond,a lnt a s t t
t ne ha d
ppe r n he s e n stc
r i a. c
ppela s s e t hat
t ba upt y cot e r i i posng t m one a ys nc
he nki c
ut r ed n m i he
t r a éons
.
a. Pr dc Re aéon
ac e voc

A cout has t i r nta hott t diba or s pe lwy r fom pr c a a
t
he nhe e ut iy o s t
us nd a e s r
a dce s

snc n. e I r S de 4 2 U..6 4 6 3 (98 ) s e as I r Eva ,8 F.d a 7 6
a éo Se n e n r 7 S 3 , 4 1 59 e lo n e ns 01 2 t 0 .
Thi a hort i de i d fom t lwy rs r e a a ofk e of t cout.1 at 6 The
s ut iy s rve t
he a e ' ol s n f r
he
t d. 43.

Supr m e Cout ha sat d t tg e dic edon m us begve t t tilcolf on de ii t
e
' s t e ha t at s z
t
t i n o he ta lt
'
c sons o

s pe otdiba a a t ne
us nd
s t n tot y:
On oneha t pr es i ofa a t ne sofgr a m pora
nd, he of son
n toz yi
e ti
t nce
t a i vi l and t pr pe iy ofli whol lf m a de nd
o n ndi dua,
he os rt
ls
e ie y pe
on ise rcs Therghtt e r iei oughtnott be lghty or
t xe ie.
i o xe cs t
o
i l

3Thec u tte t Ch r a Ale a wela t e1w 5' LS a t no vig ' atr y .S eEnmo v.
o r ras en nd ln, s l s h a t Q s he n- rml to ne s e
m
'a
n

Pr s et iaCo .6 5F.d1 ,4 (dCi. 1 )(gheeinosrousds eta ac utma sncin
o c Ca tl , 7 3 38 17 2 r20 2 Ct r s ei iput h t o r y a to
fl
alw 6- p s ntt isi rntpo r). c rl gy t a ayi r mnnst smefrt t a' r y
a
utua o t nhee we' Ac o cn l, he n lss e i he a o he wo to ne s
i
t
and t 1w fr
he a im.

ca ii l t n fom hi . O n t ot t i i e r m el
pzc ousy ake r
m
he he , t s xte y
de ia e t tt r s c a lt oft ba s d bem ant ned,
st bl ha he e pe t biiy he t houl
i ai
and t tis ha m ony wih t be h s d be pr er ed.For
ha t r
t he nc houl
es v

t s o jcs s mec toln po r s meds r éo o h t
he e b e t, o on t l g we , o ic e n, ug t o
i
z sde i t c t Tli cic e i ought t be e r ie wih
e i n he out. as ls r ton
o
xe c s d t

g etmod réona djd me tbu imu tb e ecsd a n
ra
ea
n u g n; tt s e x rie ; nd o
ot rti lca de i ,n a c s ofz m ova fom t ba , t
he tbuna n c de i a e e
l r he t wi.
h
t s m em ea ofilor a
he a
ns tf m don a t c tis l.
s he out te f

Ex a t But 2 U. 5 9 5 -3 ( 8 4 ; e as l r G. . .45F.d 8 6 (t Ci. 9 4
re r 2 S. 2 , 29 0 1 2 ) s e lo n e L 5.
7 2 5 4h r 1 8 )
(o rsT v t a ho iyt d cd , t nt bo dso d epr c s, wi bea mitd
c u t f e he ut rt o e i e wi he un f u o e s who l d te
ha
hi
l
t pzc e). a l t c ut o st ubsa ild frnc t t e g il c u t'nr ve ng
o a éc ' An ppel e o t we f tnta e ee e o h t a) o t'i e iwi
a
s
t
a decson t diba or s pend a atoz y.I r Eva .801 F. a 7069 s e as I r
ii o s r
us
n t ne n e ns
2d t
e lo n e

M o rse , 0 F.d21 , 7(t Ci. 0 2 (flmig ds r ntofat r e a n i t e
ris 3 5 3 1 21 4 h z 2 0 ) a ft n iba me
to n y nd ot h
ng
'

f e t def ê nc a r viwi c zt i die ed t s
f a
gr
e e e e e ng olt s z ct o how t t couz wlih i pos t
o he
t ac m
es he

cs t nt).
l bn- '
i me
Thei r ntpowert diba a ator ym us be e r i e wih gt a ca i Byr v.
nhe e
o j r n t ne
t xe c s d t e t uton. d

Ho s n,1 F.Ap x 7 9 7 6 (t Ci.2 0 )(np l he )
o 08
p' 4 , 5 4h t 0 4 u ubi d .Thee tme snc n of
s
xte a do
dibn- e or s pe i f us bee r i e w11 t gr t tt tnnta c uéon,a t n
s t nt us nson f t xe cs d t1 he ea es est i nd a
m
m
.
nd he
onl t t e e nec s t ,?ba e on t z or be ot t c t Unie St esv.Sha f r
y o he xt nt es a y' s d
he ec d f e he our . t d at
fe

E u .Co.1 F.d 4 0 4 4h Ci. 9 3 ;s eas Re ou Tr Co . Br h ,6F.d
i
1 3 5 , 61( t r 1 9 ) e lo s léon .
v. i t 3
3 6 34 (t Ci. 9 3 . t ne sfcn pr c es pe i aegu rnte t rg tt f i
3 , 0 5 h t 1 9 ) Ator y a i g a éc us nson t a a e d he i h o ar

no e b notn c sai t rg tt ahern l r Chply 4 8F.d1 3 ,1 3 (t Ci.
éc , ut
e e stl he ih o aig.n e i e , 4 2 2 4 2 5 4h t
y
1 71 r oc d a d pr c s i ads t ntp o e dn doe no rq t t taheln be
9 ) Tz e url ue o esn ibnme r c e ig s t e uie ha ai g
gve t t a t ne i ve buthem us begve f .nodceoft cha ge a i thi a
i n o he tor y nvol d,
t i n ai
t
he t gans m nd

a o tu iyt e p an a dee d hi a tons).
n ppo t nt o x li nd f n s ci '

8

H e e,t bankml c cour i
z he
pty
t nvoke is i r nta hort a t voke t pr c
d t nhe e ut iy nd e
d he a éce
prvie s of Che n,Ale a LSC. Appe lnt a gu t t t ba pt y cour l ked
i l ge
t
l n, nd
4
la s z e ha he nkru c
t ac
a hort t s ncéon Che n, ln, nd LSC bec us t miconduc t tt ba npt y c ut
ut iy o a
r Ale a
a e he s
t ha he nktl c ot

f
ound ci notoc i t unde li pr edi s ' c Fort r as sa ed beow,
td
cur n he
ryng oce ngs ub udie.
he e ons t t
l

t c t c l s t t t ba
he our oncude ha he nkmz c cour ci nota e is di c eton i i posng t
pt y
t ld
bus t s r i n m i he
pr c i t voc don ast Che n,Ale orLSC.
a tce e a
o
r
l n,
5
1. The Una horz Pr c i eofLa
ut i ed a tc
w

I i unc ese t t Che n,Ale a LSC di not a a bef e t ba npt y
t s ont t d ha
r
ln, nd
d
ppe r or he nktl c
c t a a la s a gue t t t a hort t s pe or r voke pr éc prviege onl
out nd ppe lnt r
ha he ut iy o us nd
e
ac e i l s y
a
pphest ator yst ta epr écng bef et c ut Thec utdia e . t cout he d
o t ne ha t ac i
or he ot .
ot s gt es As he
t l
i t Augus 1 2018 m e ot ndum opi on,i a e wih t hol ng ofU nied St t sv.
n he
t ,
m a
ni t gr es t he di
t
ae

J ns n,3 7 F.d 5 4 5 0 ( t Ci.2 0 ) l J ns n,t Se nt Cic i f un t t<
oh o 2 3 5 , 6 7. r 0 3 . n oh o he ve h r ut o d ha <
h
a
c ts pow e t z a e a dicplne a t ne w ho a
our'
r o egult nd s i i toz ys
ppea bef e i e ends t
t
or t xt
o

nonm e r of t ba who e
mbe s
he r
ngage i una holze ac te afe
n
ut i d éviis fcdng t cour.'J.
he
t' I
L

4 T'e cour nots t i a he c e Sld a ' s LSC,t N ozhe z D iti ofA l m a a fr d a
h
t e hat n not r as e gam t
he
t rz srct
aba
fime
banl l c c tsde ii t Tr l upon isi te a hort t i
m pt y our' cson o fey
t nhe nt ut iy o mpos non- onetr s dons'i l lng
e
m
a y anc y'ncuci
a l8- ont pr dcer voca
n m . ac
h
e don,a i tLSC asar ul ofaf di ofbad fih conductLa Sol.ofChia o
gans
es t
m ng
at
. w s
c

TJE v. r t,CaeNo. 8a-7 2 9WL 11 5 8 a * ( D. aMa. 2 2 9.
Cobet s
1 - 67, 01
25 6 , t 3 N. Al. r1 , 01)

'

5 As a pr lm i r mater t c t ha ale de e i d t a lant'ar m ent t t t pr dce
ei na y
t , he our s t ady t - ne hat ppel s gu
ha he ac

rv a ni a i c ndigusda apa d ess nso fls Chen,Ale a LS c tndt tt
eocdo s n t do s ie s rc c upe in al. r ln, nd C one ha he
jun
'
prc iervoc d wa a i r sil i nc ne ee iz c s lc i j d iblp Thec r a rse
a tc e a on s n mpemisbe t do ntr d ta ae a kng us ca it
ju
i
ou t dd es d
t svez ques i am emor ndum opi on fld on Augus 1,2018.ECF N o.112. r i t c zthed
hi y
don n
a
ni te
t
The en, he olr l

Rh tt Prc c Re c do i, sama trofa no a ij c n. Thec ur ne dno rsaeisr aonn
ta he a d e vo a n s a
te lw, t n nun do '
? o t e t ett t e s ig
her a adopt e iel isopi on fom t Augus 1,
e nd
s ntr y t ni t he
t 2018m emor nd'm opi on. c di y,t pr dce
a l
ni A cor ngl he ac

t v a n i nota i to a t e c ut fndst tt b nr l c c ur ha jrs ido t i s t
e oc do s
n t in nd h o t i ha he a ltpty o t d t idc n o mpo e he
junc
n
t
prc ervoct Se as Matro Ba s7 0F. x1 8 1 8 9(t Ci. 01)g-gLa S l. c o
adc e ai e lo te f nk, 7 App' 6 , 6 -6 5h r2 9,-z w osChia
on.
f
f
LLC v.Unie SttsTr,5 2B. 6 4 6 0 ( D.La 2 1 )(d pdn dsrc cur' o izo aft ng
td ae . 9 R. 2 , 3 W. . 0 8 a o g itit o t ptin fïmi
s
b nknptyc ur' prciervoc do Endngt a aT o r d sno ne e srl is a V j c n' n i
a tx c o t a tc e a n, i h t f u t oe t c sai sue n un do whe t
s
c
y
r sdcsa al r ysa li t prciewihi isdsrc o r glaeta pr c e)
et t n to ne ' b't o a tc t n t itit r e tlt h t a dc '.
ly
9

Li wie,unde Vigi a lw ,lwye s a e r s
ke s
r t ni a a r r e ponsbl f t una hozzed pt c (flw of
i e or he ut i
a éce ? a

t i no lwy re o e s Pt 6 j 1 Rue ofS pr me Ct ofVa6He e t b nk upty
her n-a e mply e . . , , ls u e
.
. r , he a r c
cok f
ut ound t t t non-a t em pl es of LSC w e e c it nty e ge i t
ha he
lwye
oye
r onss e l nga d n he
una hodze pz c oflw a f dng t ba upt y c t Sç Ba c.O p.459
ut
d a éce a fec
he nkt c our . e nlt
-60,506
-07.
Che n a Ale a m ana ng pa t r ofLSC,ove s w t suna hodze pr céce of
r nd l n, s
gi
tne s
r a hi
ut
d a
1w t twasf l by LSC' li pr s tt s l e r e .
a ha
ueed
S lgh- e sze aes nvionm nt TheLSC s l ss a f known as
a e t f,
T le c ula s' f ged i nmne ousi t nce ofpt ci i pe m isbl lga a c
f i nt ons t nt , f
c
? enga
n
r
nsa s
ovilng m t s i e e l dvi e

t potnt l le s abet l g dv oa bnsofF= S pol is a s of t sjs ou tg
o e i cint, l i al e i lt
a
e
SC'j i e , nd ome i wa u t tiht
c
wr
ong,s asa sng ci nt t hi colatr lorl vece t i de sof t i s he es' I
uch dvii le s o de l e a
ea
ran bt f her c dul .? d.

a 5 0 The ba ml c c z f u t a fco pld wih t pr sur t hi s ls a
t 1.
nk pty ou t o nd h t f j u e t he e s e o t ae nd
g
c m ison tt t , t f ct t s l peopl e ge i ove r c lng conduc i not
om si a ge s he a hat aes
e nga d n
r ea li
ts

s l ii ' a d Tthes mpi o t ecintc ns t n s a to i t sc s ,c i dwih
uprsng' n fl a l f h le o ul t' cins n hi a e ombne t
g
ng
a
e de e a awh e wa e ug t s ésy t ga knpty c ut t t L Q ha srou
vi nc s
ol, s no h o a f he b n 'z c ot ) ia LS
t
s ei s
overi is .'I at510-11,n.81.
sght sues' d.

Ale a s c e t a i plm ent t fsaes Ply Book' t t e our ged cint
ln lo r a ed nd m e
ed he f l
a
' ha nc a
le

c ulant t fc
ons t s o fompet a i tot rlwyesf t z pr e ai oft cint.? daa 503,
e gsns he a r or he e esntton he le s'1 t
n.66.The Saes Ply Book wa <r pl t wih li pr s ur s l t c i ' t t m ade t
l
a
s de e e t agh e s e aes a tcs' ha
he
bankt c cour de e n i t t LSC was m or conc z
upt y
t t r ane ha
e
e ned wi. c osng t s l t n
t l i he ae ha
h

r pr s ndng t i cle s J a 458. ba upt yc t a es i lyt oubl byt f
e ee
het int.. t
dx
The nkr c ouz w s pecal t ed he f
now
orne r' t h,t ti ude aHm e s nsdveof e t pot nta de or a i ude s dpt d
ve 'pic ha ncl d
e i
f r o e il bt s nd ncl d c e
.

6Pt6 j1 Rue o S prmeCt of . r vie,i pet n pat T ylwy rwh ad ano lwy ri t
. , , ls f u e
. Va p o d s t ri t r:' a e o is n-a e n he
z ne
An
u ut rz dp a dc ofa i s bjc t dsi i a cs r nt'
na ho ie r c e 1w s u e t o icpl nd l bnme .
ne
i
'
10

lngua s h a i i fbe tr t a k f f gi ne s t n as f per isony whe a
a
ge uc s t s r te o s or or ve s ha k ot m si '
'
n
pr pe
os cdvecints i t y ne de tm et dic st ba m z c flng wih t i s
le ad he e d i o s us he nl pt y li
t he r pous I
e. d.
W hie cintcons t nt we e i tuc e t t y c d notpt de lga a ce f n s ve a
l le
ula s t ns r t d hat he oul
ovi e l dvi , f e z l
i

i tnc si t e matr beor t ga ml c c ur) t ei tu do we enotf l we
nsa e n h te s f e he b nk pty o t, hos nsr c ns r
ol d
o

b ( Q no atr ypes ne. L a 45 .Furh r cintc ns la sweep i abae
y LS
n-to ne ron l? i t 9 te, l o utnt r ad s
'
e
s lv of$40, pl ac
aa
000, us ommison ted t how manypr pe t t ycos d.-a
si i o
os c s he l e J.
d
H e e t ci ntcons t nt we e iw ol d diecl wih t de or i t unde li
r , he le
ula s r t ve t ty t he bt s n he
ry ng

c esand e ge i t una hozz pr céc oflw wihi t sdit t Forexa pl ,anonas
nga d n he ut i ed a e a t n hi s dc .
m e
lwy rci c ulantl a e i Chia ga M s Sc tt lga a cet ts cotl la
a e lent ons t oc t d n
c go ve . ot he e l dvi ha he ld e ve
a de of he ba npt y s he e.J. a 460,n.1 Ass h,unde Vigi a lw,Che n a
bt f r nktl c c dul - t
I
L
2. uc
t r ni a
r nd
.

Ale a e r s
l n t e ponsbl f t una horze pr dc oflw c
i e or he ut i d ac e a onduc e by t i s
td
hez uborlna e
ci t s
be a et y ai t m by tlni g t e pl esa i e e
c us he ded he
r i t he m oye nd mpl m néng t SalsPl yBook i
n
he e a
n

t un ut odz d pr cieoflw. . ,j1 Rue ofS z meCt o Va Ev n t o h Che n
he a h e a tc a Pt 6 , ls up e
. f . e h ug
r
a Ale a enon- e be soft W es e n Diti tofVig ni ba ,t i f iur t pr ty
nd ln r
m m r
he
tr
src
r i a r het al e o ope l

s r ie t i e pl es whi ld t t una horzed pt c i oflw i t sditit ha
upe v s her m oye , ch e o he ut i
a tce a n hi stc , d
a i pa on t ba upt y c ta t unde li pr ee ngs
n m ct he nkt c our nd he
ry ng oc di .
2. TheS e r Pr r
r o o am

Theba npt y colt f
nktl c z t ound t tt Spe r Pr r m wasa fs m f om t sa t'a
ha he t o og a
fca r he t r' nd
hed Che n z s
l
r e ponsbl f isc ea i a i plm e a
i e or t r ton nd m e nt don.Ba .O p.503,506.TheSpe t
nkr
to
Pk a i ved LSC cint s z
ogz m nvol
lv s urende i t i hnance c r t com pa es ope a ed by
rng het
d as o
ni
rt
nonpa t Bta Fe
ty in nner The Fe t e
.
nne nddesw oul t c r outofc t i sa es i l lng
d ow a s
eran t t , ncuci
Vigt ',ft Fe r r l t d sor ge l si N e
r ' a fo nne -e a e t a ot n vada M issi ,ozI a f t pur eof
m
, s i sppi
ndina or he pos
11

ty ng t pêm es c e l nde s orhol t i c lt r lhosa w11 e s i hookup, owi
r i o i e ur d e r ,
d he. ola e a
r
t ge, t1 xce sve
t ng

a sor gef st twe ec pl eyunnec s r ' I at468-73. nr ut t Fe renddes
nd t a ee ha r om etl
es a p'JL
I et n he nne
-.

wo l pa LS Sf l nt' to ne ' f e a fi fe i o d rt ge t ez fra fo ( Q
ud y C' f i s at r ys e s nd lng e s n r e o t h e er l r m LS
ce
l
t do i.7l a 472.
o
t7 d. t

Fr t m om e Che n e al t LSC pa t r r ga di t Spe r pr a ,he
om he
nt r m ied he
rne s e r ng he r o ogr m
w a alred t t ques
s e t o he
dona e na at oft busne s a z nge e .1 a 472.To f t r
bl t e
he
i s t a m nt d. t
uthe

e dencet sm i c
vi
hi s onduc ,pot ntalde oz ,ncuci t W ila s , e eofe e t Spe r
t e i bt s i l lng he lim es w r f r d he r o

pr a byLSC' cintcons t sbeot t de orc ule * t1a at ne J.a 472,
ogr m
S le
ulant f e he bt ons td . n tor y.-a t
1
d
504.
7

The ba npt y cour l i outa de al f tz lfndi r ga ci t c ea i oft
nktl c
t ad
t ied ac ta i ng e rlpg he r ton
he

Spe r pr z m .See Ba .O p.468
r o og a
nkt
-78.I es e e Che n c e ed t pr a t i r as
n s nc , t r at he ogr m o nc e e

t s dandlkei
he pee
i lhood ofr ceptofat ne fesJ xa 503. ba cuptyc ztsfndi
e i
tor y e .- t The nlr c ott' i ng
d
t tt Spe t pr a wa c e t a i pl m e e i ba f ih i a pl s
ha he t o ogt m s r a ed nd m e nt d n d a t s m y uppored by t
t
he
r cor a i notcea l wr
e d nd s
l ty ong.I a 507.
d. t
3. Li a
; don M iconduc
s
t

Che n, Al a LSC a s e ge i ldga i nas onduc whe a la s fus d
t
l nd
en,
lo nga d n i ton ic
t
n ppelnt f e

he vyha e tc c ,ncudn tx me sg s t tya g tgc t a t W il ms s t sg
a nd d a d s i l ig e t sa e , o r nd e s o t nd he la ej o in
i
confi wave s't alow t a la st f s r t a t ne ci prvie on t i beha f
lct i r ' o l he ppe lnt o f e t he toz y- lent i l ge he.
as
r
l

a atmptt s ed t etf e a IJ S fo cs o r . I a 48 -8
nd te o hil h i l s nd JSC'I r m l c ve y' d. t 2 3.
l
i
'
Appel nt s l sgni nt i i t i r pl btef ECF N o. 1 a gui t t
la s pil i hca nk n hez e y i ,
20, t ng hat he
ba ru c c ts fndi wasc e ty e r
nk pt y our ' i ng
l a l r oneoust tLSC enga i ba f ih c
ha
ged n d-at onductby

7Suc conduc i al f rhe e de oft una horzedpr dc oflw.
h
t s so u t r vi nce he ut i
ac e a

12

al m ptng t ge t W ila s a Scot t a s r t a t ne c intprvie i a a m pt
te i o t he lim es nd
t o s e t he tor y- le
i lge n n ae
t a d t U nie St t s Tm s e s s
o voi he
td ae
t e' ubpoenas Ba .O p.54.The cour dia e .A fe
. nkr
t s gr es t r
r vi wi t r cor t c tfndst tt r i s i ente dence i l ng e de e of
e e ng he e d, he out i
ha he e s ufki
vi
, ncudi vi nc
m av CXZI,t xt m CS V CS al PMOIC ca fonn LSC t t k/l n s s r ga d ng t
l II S e
S , fd
R is z
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e
t t mpac on t unde l ng ba lpt
t he
ryi
nkrl cy
c es Specfc l,t i c swe e t
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nd ol
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15

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et em s
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was
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t ie om ds nd l e e he
tc a donsundert Ca belgudepos s
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t.

17

a l ison s
cm s i
uppot s t ba pty c ts c l i t t a lant ' a éons we e
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t
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c tc l d t Che n' t s ony r snotc edi e'whe he cam ed he di i t s lour oncude hat r s e Hm
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one ofwbi h wasChe n lat ng fom one ofhi lm ie parne st ta lw s twasfld by
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vi
e r ng her biiy o y he

s nci W hi t sc t ne d no d tt nei I t Kunslr 9 4 F.d 5 5 5 4 ( t Ci.
a ton. l hi ou t e t e emi f n e
e
te , 1 2 0 , 2 4h t
1 9 )a le o sdet c tx o Fe . Ci P. 1viléo , t a lssi hepf l nt s
9 0 ppis uti he on e t f d R. v. 1 o a ns is nay i s l u i hi
c ntx .The Fo t Cic thed t a fg h n t mon tr s nc n i lt E t pade
o et
urh tui l h t f e he ea y a do s age I he r s
wl
s ld ge t l begi n t oppor u lt t s
hotl ne al
y
ve h:
t riy o ubmi af vison t i ûna ils a us ort
t hda t
he r nca t t , o

s
ubmi s h ota re de ea t cour' dic e pemis'J. He e t c tfndst ta
t uc le vi nc s he
ts s r don r t.'- r , he our i ha
I
L

$300, s
000 ancéoni sgniia l lr t war nta lant'nee t aguet i abiiyt pa
s i fc nty age o ra ppel s d o z her lt o y.
The ba upt y c tdee mi d t Che n,Ale a LSC coul pa t l r s nc
nkt c out tr ne hat r
ln, nd
d y he a ge a éon
onl bas d on Che n a Ale ss ltes LSC' t x r ut ,a lga f spai byr i nt i
y e
z nd ln' aa i ,
S a et ns nd e l ee
d
esde s n

t sdit t Ba z. p.507. c tc l
hi sdc . nk O
The our onc udest tt r c d esa ihe byt ba
ha he e or t bls d he nkmz c
pty
c t di nots fcinty t ke i o consde a i a la s a lt t pa Acc di y,t
our d
ufi e l a nt
i r ton ppelnt ' biiy o y. oz ngl he
c tr m a t t ba
our e nds o he nknl c couz f a e de r he rng on Che n,Alen,and LSC'
pt y
t or n vi néa y a i
z
l
S
a lt t pa t m onet r s nc i .
biiy o y he
a y a tons
D et rence
er

Appelnt a guet t ba pt y cot e ee d iss a t yand i z ntpow e s
la s t
hat he nkn' c
ut xc de t t m or
nhe e
r
by i posng m onet y s nc
m i
ar a donswihouts c f i t f uz m iconduc t bedet z e The
t
pe iyng he ' e s
ut
to
e r d.

19

ba ç pt y c tconcuded t t s nc
nlml c ouz
l
hat he a éonswe e i pos d t d t r f ut nas
r m e o f e ut e iconduct'
de
.'
Ba .O p.507.I i cea f om t r or t ba pt y c tw a e t de e a la s
nkr
ts l r r
he ec d he nknl c our nt d o tz ppelnt
f om contnui t hea ha d s l t ctc e pl d by t ci nt c ula spur ua
r
i ng he vy- nde aes a is m oye
he le ons t nt
s nt

t S ls a Book e tdn i t a h r o t m smi tt S to, nd e g gngi ld a
he ae Ply
n e g n o not e pr g a i l o per a n a i n i g don
a
m ic
s onduc .The c ztfndst tbas on tésr coz t i posdon ofm one a y s
t
ott i
ha
ed
l e d he m i
t r ancéons
wa notce ry e r ousoz a abus ofdic e
s
la l z one
n
e
s r don,butr t tw a pr rasa de e r ntf
a he s ope
t r e or
f ur mi c
' e s onduc .
ut
t
I
V.

Theba nptyc ti
nktl c our mpos aoneye rpr dc rvoc éon a $5, snci a
ed
- a ac e e a
nd 000 a ton nd

a eghte mont pr dc zvoc don a $5, snc
n i e n- h ac e e a
nd 000 a don on Dea l a M ot n,
lhed nd
ga
r s évey.Appel sc om t ba m l c cot e r d i i posng t pr éc t voca
e pec l
lant l i he nl pt y ut r e n m i he ac e e
don
a t m one a y s nctons f D ea l a M or n' i ve e i LSC' m iconduc ,
nd he
tr a i
or lhe d nd
ga s nvol m nt n
S s
t

i l ngt Spe t pt a , nd t i i vi lf lngsi t z pr ent éon oft i ci s
ncudi he t o ogr m a he. ndi dua sii n he e es a
t
he t lent
we ei e t .Thecour c l st tt ba m l c c tesa ihed a r or f ci t t
r n r or
t oncude ha he nl pt y our t bls
ec d m lng ha
10t D e a l a M or ac e i ba f ih a t ,di nota eisdic e
7 h l he d nd
gan t d n d at nd, hus d
bus t s r don ore ge
nga
i ce re r by s i ng D ea il a M oz
n la r or
anctoni
lfe d nd
gan. e S x,891 F. a 519.
Se i
3d t

l i undiput t t ba
ts
s ed hat he nkml c c t ha t a hort t i pos t pr c i
pt y our s he ut iy o m e he a tce
r voca
e
don on D eafed a M or n. eI r Eva ,801F. a 706.M or ove ,asdic s
l i l nd
ga Se n e ns
2d t
e r
s us ed
a
bove,ba npt y cour s ha t a hort , bot put uant t t i i r pow e a
nktl c
t ve he ut iy
h
s
o het nhe ent
z nd

S c n 1 () t i esnc nso l a sf rba fih c uc. e ,:p.Sx 8 F.d
e éo 05a, o mpos a éo n i nt o d-at ond t S e ... i , 91 3
dg
.,
a 5 9 1 U. C. 1 5 a. c us t ec ur rv e t ba ml c c r' deer i to f
t 1 ; 1 S. j 0 () Be a e h o t e iws he nk pty ou ts trnnain or
a a e ofdic edon,t ques
n bus
sr
he
éon i i Ti has a t d a bio rl oz ir tonal ha f ie t
sf d
t
ce r t i
y
t a i ly, s ald o
20

c i rj iil zc guz dfco sc nsti n ise ecs of srto o gjiha rl d
onsde udcal e o l'e atz o tanig t x rie dicein, t i t s ei
y
f
e
on e r ous f tzlorlga pz mi e .? elh,879 F. at536.
r one
ac ta
e l e s s'W s
3d

W i. r pe t t D e a l t ba npty cout pr ry ac
t es c o l Ee d, he nktl c
h
t ope l knowl d t t he di
edge ha
d
s et ngsc r ty i hi r pr ent don oft W ila s s Ba .O p.5 H owe r a a
om hi
or ec l n s e es a
he lim ç . nkt
08.
ve , s

pn- rofLSC,hea s i r ponsbl f t s t om i oft ft . ba npt y c t
tne
f
lo s es i e or he horc ngs he tm The nktl c our
f
ound t LSC' a t ne r ulty i e a t a c ran e ent e out ged, t
hat
S tot ys eg a l gnoz d, nd o
e t i xt , nc a
he
una horz pt ct of1w by LSC' s l c ula s Theba npt ycour r cog z t
ut ied a ke a
S aes ons tnt .
nktx c
t e nied hat

Dea l wa notama e gpat rofLS b f ndt t snota e c efrvole g
lhed s
na
rne
C ut ou ha wa
n x us o i a
t ehia t e .2 A c ot ngl D eaied,i r ponsbl f t ac s of t ot r LSC
he t c l ul s1 c di y, l l s es i e or he t
he he

atr e s Se Va RueofPt fCo uc 5. c.3
to n y . e . l
o . nd t 1()1
The ba pt y c t as f
nkmp c out lo ound t t D eafed e ged ils e mi c
ha
l i l nga
t om
s onductwih
t
r s t t li r pr ent don of t W ila s ,i l ng cni i t notknow a
e pec o zs e es a
he lim es ncudi l m ng o
bout t
he
Spe r pz a durng ta 341 c e
r o ogz m
i le
t dhor m eei 4 I at508.I f c ,de pie D ea l s
s
tnpl d.
n at s t
lhe d'
de a,f kne SIIwel wha t S z o pr a wasa how i w or d. 1 .
nil f
he w I l
t he pe r ogr m
nd
t
ke ' 2.The r c d
'
e or
.

1 Appela sa guet D eafed a M or we enotpa toft ff smanage enta s d notbehel
2
lnt r hat l il nd
gan r
r he ïvn'
m
nd houl
d
r ponsbl f t Spero pz t m ort r mpantuna hodzed pr dceof1w a LSC.The cout f t s
es i e ot he
z og a
he a
ut
ac
a t
t mds hi
ar e dii
gum nt sngenuous Appela sa gueChen,Ale a LSC a enotEabl f tz m iconductbec us t y
.
lnt r
r ln, nd
r
e or le s
a e he
we enoti ve i t c se bef t ba npt ycourtYe,a lant m ant n t D eased a M or n
r
nvol d n he a s ore he nktz c
. t ppel s i ai hat l l nd
ga
ar as notlabl bec us t i iw ol m e wa lm ied t t c se be or t ba r pty cokr. r f e,
e lo
i e a e her t ve nt s i t o he a s f e he nlml c tt The e or
appela swoul ha t courtde i t tno paryi la e f t ba f t conduc t tt ba rapt
lnt
d ve he
c de ha
t s ibl or he d-aih
t ha he nltz cy
cour f
t ound.

1 TheVigm' Rueo Pr e so l u t .()p o d sf lwy rs al rs il f ra he lwy rs
5
rl a l f ofsina Cond c 51c z vie :f a e h lbe eponsbe o not ra e'
'
A
voldo oft Rue ofPrfsina Co uc i:()t lwyroresorwihkno e g o t s dfc
i a n he ls
oeso l nd t f 1 he a e dr , t wld e f he pe i
c ucaa ist cnd tt l d or()t lwyriapat ro h sma geilut lt i t lw ft
ond trdfe he o uc i ve ; 2 he a e s rne z a na ra a hoiyn hea tm
wo
i whih t ot rlwye pr cdc s,orhasdie s r s y a hort ove t ot rlwye ,a knowsoft
n c he he a r a e
r ct upe viot ut iy r he he a t nd
he
c
onduc a a tm e whe is c e nce ca be a ded or mi ed butf is t tke r as bl r m e al
tt i
n t ons que s n
voi
dgat
al o a e ona e e di
a i '
cton.'

1 A 341 c edior m ee i am e
4
t t s dng s
edng c
onvene by t UniedSt e Truse ofcr dior whe ques
d he t ats
te
e t s re
donsar
e

pr sntdt t d b o , nd roah, rnni t t ba r ptyfl g. 1U.. j3 .
e e e o he e t r u e t peti ng o he nk u c in 1 SC. 41
i
21

t fec s t tD çafed fkne a
e l t ha
l i l r w boutt Sper o pr a be or he m e * t1t W ila s '
he
r ogr m f e
t . he lim es'
1

a dt Rul 2 6$)dsl u e t tDea l fld,de idt t per wozdp yt fi
n he e 01
icosr,ha lûed le i ndf ha S to l a he ing
e
l
l
f e f t W iln s s Ba .O p.509.
e ot he lim e . nkt
W ih r pec t M oz n,t s m ehol t' a t li knowl
t es t o
ga he a
ds lue s o zs
edgea iw ol m entwih
nd t ve
t
t una horz pr c oflw atLSC a t us oft Spe r pz r m .H owe r t
he ut i ed a dce a
nd he e
he r o og a
ve , he
banl l c c ta s f
m pty ouz lo ound t tM oz n' i vi lf ii i li r pr s nt ton ofScot
ha
ga s ndi dua alngs n ls e e e a i
t

r q ie a mo e s v t s nc n t n D eail S cfc l ,M o ga zee ae t hi no
e ur d
r e e e a do ha
lfed. pe iial
y r n lg td o s nlw y t s e,who w a e pl d asa pa ae li hi of ,t t s
a e pous
s m oye
r lga n s ûce he e ponsbiiy t pr pa e
i lt o e t ,
z vi w,a wines t sgna ur sofhi ci ' peddons Theba m l c c tf
e e nd t s he i t e
s lents
.
nl pt y out ound t st
hi o
berbe
f yond t pae.' nkt O p.512.M or n fti notr viw Sc tspeéton ors he es.
he l 'Ba .
ga f d
l
e e ot'
i
c dul
. .

gn jdd n wite sS o t in t e 'I a 4 . n fc,fhef témeM o g n li e e
a d i ot t s c t sg h m. d. t 79 I a t t as
a
'
t
z a j ad y s

o J siaSc t wa a h rd poséo o J ne2 20 7 ne ry ay a a ahafa tzh tc s
n e sc o t s t e e i n n u , 1 , al e r nd l fe e a e
wa fl 'L .at511. nse M or n ha hi s em e twih Scot a s ntalw pat r
s ted.' da
I tad, ga d s pous e f
.
t nd e
a rne
t t 341 c e t sm e tng.
o he
r dioz
ei

Fi ly,t ba npt y c tr le on 10t D ea il a M or n' pzordicplna y
nal he nktl c out eid
7 h lfe d nd
ga s i s i i r
r c dsbe or t scour,a ot s t det z i t ta ls e s
e or
f e hi
t nd her , o e nnne ha e s r ancdon woul bei f e dve
d
ne f c
t de e f ut t s
o t r ut e niconduc .Ac di y,t cout concude t ba
t cot ngl he
t
l s he nkmz c c zt di not
pt y olt d

a eisdic e i i posng t pz dc r voca orm one a ys nc
bus t s r éon n m i he ac e e
don
t r a donson D e a il or
l fe d
M or n.
ga

V.

Wihr s c t S a ln, h ba fz c c r f ndli j nt a s v r l la l f r.
t e pe t o c na t e nknpty ou t ou nm oi l nd e e al ibe o
y
y
t s nc
he a donsi pos d on Che n, l a LSC.
m
e
z Alen, nd
Appelnt a guet tt s s
la s t
ha he e ancéonss d
houl
22

beva t d f i ufi inte de e a t cour a e .The ba m l c cour hed Che n,
ca e or ns fce vi nc , nd he
t gr es
nl pt y
t l
r

Ale Sc ia a LSC la e f $ 000 oft t a snc
ln, a n, nd
ibl or 250,
he otl a donsi
mpos d.As des rbe
e
ci d
above Che n,Ale nd LSC we e i a ey i ved i t m iconductt t ld t t
,
r
ln,a
r nHm s l nvol
n he s
ha e o he
s nc
a dons H owe r Sc nln i lnked t t m iconduc onl t ough hi owne s p i e ess
.
ve , a a s i
o he s
t y hr
s
r hi nt r t

se
p
S
i MihyLe a,LLC,J s va LLC, and Royce M arkeéng,LLC,hi ladershi of LSC'
n g t gl
ué ,
,

'

.

makei efors a onee ls t Fe trgarlngt Sper pr a J. at456,507.
r tng f t, nd
mai ent o nne e ci he ro ogr m.-L
1
Thes c
e onne i a e i uf i nt t f t Sc nln w a z ponsbl f a of t
ctons r ns hc e o md hat a a
s es
i e or ny
he
m iconductl a lng t t s
s
e ci o he ancdons Be us t c tfndst t r coz doe nots
. ca e he out i hat he e d s
uppor
t
s nc
a éoni Sc nln,t c t hol t t t ba m z c c t a ed is cic e
ng a a he our
ds ha he nl pty our bus t ls r éon and
vac t t m one a y s nctonsast y a y s eyt Sca a
a es he
tr a i
he ppl ol l o nl n.
W .

For t r s sat a
he ea ons t ed bove,t c tAFFI S t ba
he our
RM he nkml c cour ' Fe ua y
pty
ts br t

1 2018,or r a a ende i pa tasi r lt t t pr dc r voca
2,
de , s m
d, n r
t ea es o he ac e e
don ofChe n,Ale
r
ln,
and LSC a t pr c ie r vocai a m one a y s nc i of D eafed a M or n,
nd he a tc e
ton nd
t r a tons
l i l nd
ga

RR M AN D S i pa tt t bankml c c ztf consde a i oft a lt ofChe n,Ale
n t o he
pty olt or
i t ton he biiy
t
ln,
a LSC t pa t m onear s ncéonsi pos d a i tt m ,a VACATES i pa tt
nd
o y he
ty a
m e gans he nd
n r he
s ncdon asi r lt t Sca an.A c r s
a
t ea es o
nl
or e pondi Or z c it ntwih t sM e or ndum
ng de onss e
t hi
m a

O pi on wilbe e e ed t sda
ni
l
nt r hi y.

23

I i s O RD E RED .
ts o

ste ? ///1
nr, w/ /
ed
f fM * V f
* '
Mi

e F.Ut a ki
l
ns

hifUntdSae Ditit ud e
e ie tts src l g

24

i