CVLR Performance Horses, Inc. v. Wynne et al

Filing 78

MEMORANDUM OPINION. Signed by Judge Norman K. Moon on May 23, 2012. (sfc)

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I THE U NI
N
TED STATES D I
STRI C OURT
CT
FoR THE W ESTERN D I
STRI OF V I NI
CT
RGI A

MAt 23 2 1
92
BY.
'

LYNCHBURG DI SON
VI I

CVLR PERFORMANCE HORSES I ,
, NC.

FIED .
L

. %#
.,
.

D Pu

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Ct k
ziK

CASENO.6: 1 cvl - 00035

Pl nf
ait
M EM ORANDU M OPI I
N ON
J
UDGEN ORMAN K . OON
M

J 4 L.W YNNE,ET AL.
OIN
,

De n t.
fe dans

Thi m a t i onc a ai be or t e Cout t s tm e o a t o i n f r r i f fo
s ter s
e g n f e h
l hi i
n i to o ele r m
m

j gme orore 'fl purua t Fed rlRul ofCi lPr e r 60()2)a ()b Pl nif
ud nt d r'ied s nto ea e
vi oc due b( nd 3 y aitf
CVLR Pe f r nc Ho s s I (I
ro ma e r e , nc. (CVLR' . l is mo in,CVLR as me t r c nsde t
' n t to
)
ks
o e o i r he
or lent ed on M ay 2,201 butpr
der
er
2,
esum abl CVLR i s ng r
y,
s eeki econsder i oft or 1
i aton he der

e t rd onAp i 2 201 i whih ldimis d isc s . l e CVLR' Rul 60 b mo in wa
nee
rl , 2, n c
s s e t a e nde d,
S e ( ) to s
is l s bm itd on M a 2,2 2;t r f e a t tm e i wasfl d,t r wasno or rofM a 2,
t e f u te
y 01 he e or , t he i t
ie he e
de
y
2012 t coul possbl be r
hat d
iy
econsder
i ed.

CVLR cont
ends t si A prl2,2012,i has di over addii per i f st t
hat nce i
t
sc ed
tonal tnent act ha

wo dfrh rs tntaeiscam a i tDee a J hnWyn ($ . y ' frvi ai
ul ute ubsa it t li gans fnd nt o
ne t W nne' o oltons
Mr
)
o t Ra k terl l nc da Corup Or ni to Ac ($ CO',1 U. C.jj 1 -1 68.
f he c ee ntue e nd r t ga zains t d
Rl ' 8 S.
)
961 9
CVLR r
eques s l
t eave t t e a second am ended compl nt t i ude t e f t , whi ar
o 5l
ai o ncl
hes ac s
ch e
cont ned wihi Exhi tA t CVLR' m oton. A hearng on CVLR' m oton i unnecess y;
ai
tn
bi
o
S
i
i
S
i s
ar
f t r
or he easonst f l , lw ilde t m oton.
hat olow
l ny he i 1

'Hn a c r a c wi F d r lRue o Ci i P o e ue 7 () t Cour m ay det rmi a moton wihout an or l
l c o d n e t e ea l f vl r c d r 8b , he
h
t
e ne
i
t
a
h rng. W . Va.Ci R.11b)
eai ' D.
'
v.
(.

L BACKGROUND

Bot t pr
h he ocedur hit y oft scas and t muliude off t aleged i CVLR' frt
al sor
hi e
he tt
ac s l
n
S is
am ended com pl nt ar s f t i consi r e de ai i t m e or
ai e et orh n
de abl t l n he m andum opi on ofAprl2,
ni
i
2012,i w hih l l d outm y r
n
c ai
easons f fndi t t CVLR had f l t s a e a cl m unde
or i ng ha
aied o t t
ai
r

RI a d frde lni t e r s s e ntlj idito ove issae lw cams S e
CO n o ci ng o xecie upplme a urs cin r t tt a li . e
CV R Pe r c Hore,I .v Wynne No.6:1CV- 35,201 W L 1 55,a *1
L éo man e s s nc .
,
1 - 000
2
0948 t -s
( . Va.Apr 2,201 . Ac o di y Iwilno us s c hee t unne e s rl r oun t a
W D.
.
2) c r ngl, l t e pa e r o
c s a iy ec t h t
r evantbackgr
el
ound. However lwilbrefy s m a i t f t t have pur t y come t
, l i l um rze he ac s hat
poredl
o
CVLR ' atenton sncet enty oft or di isi iscas on Aprl2,201
S t i i he r
he der sm s ng t e
i
2.
A.New Fact Rel i t Vi M arsh
s atng o cki

CVLR alge ta i 200 Mr Wy e sn t n e t VikiMas (( .Mas '
le s h t n 6, . nn e t wo ots o c
rh (Ms rh'
)
des t t f t he had notl
pie he act hat
oaned herany m oney. One oft e not da ed Sept ber 8,
hes
es, t
em
2006,and s ur by a deed oftus t r t no consder i r r M s M ar h t pay M r.
ec ed
r t hat ecied
i aton, equied . s o

W yn $2 000.0. The s c nd noe,dae Oc o r 1 2006 a a s s u e by a de d of
ne 40, 0
eo
t td t be ,
, nd lo ec r d
e

tus,r qur d M s M a s t pa M r W yn $1 0 00. Thede dsoftus co y d t M r
r t e ie
. rh o y . ne 50,00.
e
r t nve e o .
W ynne a len on M s.M ar h' pr
i
s s opert i Pawl sl and,Sout Car i . Ac or ng t CVLR,
yn
ey' sl
h olna
c di o
M s M ar h si
. s gned and r ded t deeds of t us ,even t
ecor
he
r t
hough s di not com pr
he d
ehend t
he
na ur oft t a
t e he r nsactons becaus s tus ed M r. W ynne,w ho s t
i ,
e he r t
he houghtwas actng as her
i
ba
nkerand f i
rend.

2

l J n r 20 CVLR alge t tFis Tr tMorga Compa (û rtTr flza
n a uay 07,
le s ha rt us
t ge
ny s s us nd
Fi
W a ho ama a l n ofa pr maey $5 000. t M s M a s t p oc e ofwhih we e
c vi de oa
p oxi t l 00, 00 o . r h, he r e ds
c r
know i y pai entr y t M r W ynne,who wasusi M s.M a sh asa sraw m an bor ower. The
ngl d iel o .
ng
r
t
r
l w ass
oan
ecured by t Pa l sl l pr
he w ey' sand opert CVLR alegest M r.W ynne t d W achovi
y.
l
hat
ol
a

t tt l n w a f rt pur e ofr p yi hi f rha i pr vi l boug ou t owne sof
ha he oa
s o he pos
e a ng m o v ng e ousy
ht t he
r
t one hal of t Pa l s I l pr t t M s.M ar h di not ow n. H ow ever CVLR
he - f
he w ey' sand opery hat
s d
,

m a n a nst tM r W yn w a c
i t i ha .
ne s ompe a e a t tm e f rdoi g s by M s M a s sc nve nc
ns t d t he i o
n o
. r h' o ya e
of he i er t i t pr rt t hi . CV LR aleges t t i sugges i t s f s
r nt es n he ope y o m
l
ha n
tng hi alehood t
o
W achovi M r W ynne com m it an addii pr di e actofbank faud. Evi l on Aprl
a, .
ted
tonal e cat
r
denty,
i

7,201 WelsFagoBa t s c sort W a ho a sr d n ieofaj ca frcos e
2, l r
nk, he uc e s o c vi, eve otc
udiil oe l ur
s tagai tM s M ar h.
ui
ns . s
B.New Fact Rel i t K aren Fost
s atng o
er

A ccor ng t CV LR, M r. W ynne has r i y sat i cour flngs t t he l
di o
outnel t ed n
t ii
ha
oaned

$4000 0 t Ka e Fose ($ s Fose ' h ve ,M s Fose ha c nsse ty came t a he
, 0.0 o r n tr $ . tr); owe r . tr s o it n l li d h t
M
di notl hert m oney. Rat ,i i M s.Fos ers cont i t on Augus 23,2006,M r
d
oan
he
her t s
t '
enton hat
t
.
W ynne obt ned a not fom herand a dee oft us s ed by her hom e on t pr t t he
ai
er
d
r t ecur
he e ext hat

wo d l n he t e $ 00 00 b hene rdi
ul oa r h 40, 0. , ut
ve d.CVLR ale est a a s u pe iid poi
lg h t t ome ns cfe nt
aûert or dim i i t s cas was ent ed on Aprl2,2012,and durng t cour e ofM s.
he der s ssng hi e
er
i
i he
s
Fosers bankr cy pr
t'
upt
oceedi
ngs,M r W ynne' ow n hand- ten accountng r veal t f ct
.
s
writ
i e ed he a

t thedi no la M s Fose $ 000.
ha
d t o n . t r 40, 00.

2On mor t an one oc ason i Exh bi A , CVLR r f r t ç e ntFis Tr t' Howe r Fis Tr twa n
eh
c i n
it
e e s o t nda r t us .
def
'
ve , r t us s ot
na
med a a Def nda t i t s a to i e t r CVLR' i ta c
s
e n n hi c i n n ihe
S nii l ompl i or fr t a e ed c ai . W he h r
ant is m nd ompl nt
te
CVLR' r e e e t Fis Tr tasadef n ti a mit ke ori i t a as gesi t ti woul n Fis Tr t
S ef r nc o rt us
e dan s sa , s nse d ug ton ha t
d ame rt us
a a De e n i i we e pe m it d t tl a s o a de c ai ,i uli t y ir l va f t pu p e of
s
f nda t f t r r te o ie ec nd men d ompl nt s tma el r e e nt or he r os s
t i me o an
h s m r dum opi i i lgh oft f c t tCVLR' moton wilbe d ni d.
n on n i t he a t ha
S i
l
e e

I LEGAL STANDARD
L

Un rRul 60( ,ac tma o motona j ttr ,rle apa t fo a ore
de e b) our y, n i nd us ems eive ry rm n d r
f a vare y ofre ons t t have been gr
or
it
as
ha
ouped i o sx ca egores. Fe R. v. 60( . I
nt i t i
d. Ci P. b)3 n

ore t oban r ifun rRul 60b) te mo ng pa t mus cos a çniilt ehol '
d r o ti ele de
e ( , h vi ry t r s n d ta hrs d,
i
'
Do lv St eFar Fied Ca . t.Is Co.993F. 4 48(t Ci.1 ) whihrquie
wel . at m r r s Auo n . ,
2d 6, 4h r 993, c e rs

i t s w ûi lnes ameioro d e e a lc ofunfi prj c t t op i p ry,
t o ho smei s, rt ius efns, a k
t
ar eudie o he posng a t
a d e e i lcr umsa es' We n r v Car o,731 F. 2 20 ( h Ci.1 4)( ia in
n xc ptona ic tnc , r e . b
'
2d 04, 7 4t r 98 ctto
a d f otot omitd)
n o n e te .
d he ma ng a mo in und r Rul 60( ,t p ry movi f r r le mus cl ry
s n ki
w
to
e
e b) he a t
ng o eif t eal

etbls t grund teef gilt t stsa tonoft dititc t...a s c gou
sa ih he o s h r or sc o he aifci
he src our
nd u h r nds
mus b ce ry s tnitd bya q t prof' I r Bur ly,988F. 1 3 ( h Ci.1 92
t e lal ubsa tae
de uae o . n e ne
'
2d , 4t r 9 )
(iai a itr lq ain maksomitd) Rul 6 b)d sno pr deltga t wiht
cttons nd nena uotto r
te . e 0( oe t ovi ii ns t he
opporuniy t Itgat i ues notpr ousy ltga ed orr ii e is notde ded i a pa y'
t t o ii e ss
evi l ii t
eltgat s ues
ci n
rt s

fvo. Se CNF Co tucor,I .v Do oeCon t.Co. 5 F.d 395,40l(t Ci.1 95 ;
a r e
nsr t s nc . noh
sr , 7 3
4h r 9 )
Unie ae v Cia ,56 F. 26,3 ( d Ci.l ) Atbot m,r lefu rRul 60 b)i a
tdstts . r mi 3 2d
3 2 r 977 .
to ei nde e ( s n
dextaor nar r edy' t ii onl t be gr ed i e
i r di y em
' hat ûs y o
ant n xceptonalcicum s ances. Wis v.
i
r
t
'
' lon

T
homps ,1 8F.Ap x 5 557( hCi.2005 ( tn Compt v AlonS. Co.608F.d
on 3
p' 56,
4t r
) ciig
on . t S. ,
2
96,1 2( hCi.1 9).
0 4t r 97 )

3 esxg o n sf r eifp o i e i Rue6 ( )ae
Th i r u d o r l r v d d n l 0 b r :
e
( )mitke iad re e,s prs ,o e us bl ne e t ( ne y dic rd e de cet t wih
1 sa , n ve tnc ur ie r xc a e glc; 2) wl s ovee vi n ha, t
r as bl d lge e c d no ha be n dic er d i tme t move f a n w tilund r Rul
e ona e ii nc , oul t ve e s ov e n i o
or e ra
e
e

5 () ()fa d . . se rsnain o mic n u tb a o p sn p ry ()tej d meti
9b; 3 ru . mirpee tt , r so d c y n p o ig at; 4 h u g n s
o
voi ( )tej gme tha be n s tsi d,rla e ordic r d ...;or( a ot rr s t t
d; 5 h ud n s e aite ee s d s hage
6) ny he eaon ha
j si e rle.
u ti s eif
t
Fe R.Ci P. b)
d. v. 60( .

1 .DI
11 SCUSS ON
I

On M ay 2,2012,t sa eday t ti fl t m oton bef e m e,CVLR fl isnotce of
he m
ha t ied he i
or
ied t i
appealwih r
t espectt my underyi or dim isi iscas l i a iw el- t ihed prnci e
o
l ng der s s ng t e. t s ç les abls
i pl

t ta a pe ldiessatilc ur o j rs cin o rShos ape t oftec s i ve i t
ha n p a v t ra o t f u idito ve t e s cs h a e nvol d n he
a pe l' Fobi v St agcTe h.Cop. 1 F.d887 #9 ( hCi.1 99 ( i Grggsv
p a.'
'
an . or
c r , 64 3
, 0 4t r 9 ) quotng i .
Pr ie Co u Dic ntCo.459 U. 5 58 ( 98 ) Ho v r Eh dititc ur rt i
ovd nt ns mer s ou
,
S. 6, 1 2). we e ,t e src o t eans
t

j idito o rmatr $n ad o t a al''Fobi 1 F. a 8 ( otngI r Gr d
urs cin ve tes i i f he ppe .'
an, 64 3d t 90 qu i n e an
fz.pPr e digs Un rS , 47 F.d 1 8 1 90 (t Ci. 991 ) Th Uni d Stt sCo t
?r oc e n
de eal9 2 1 8, 1 4h r 1 ). e t ae ur of
e

.

Ap al f t Fo t Cic tha d tr ne ta adititc ur' c ieainofaRul 60b)
pe s or he urh rui s eemi d h t src o ts onsd rto
e (
m oton whie an appeali pendi i çi ai oft a
i
l
s
ng s tn d he ppeal' Fobi 164 F. a 890. Ther or
.'
an,
3d t
ef e,

Iha jrs cint rs veCVLR' Rul 60( moton.
ve uidito o eol
S e b) i
I ore t cos t pe ousy me to dtrs ol f brngi aRul 6 b moin,
n d r o r s he rvi l nine he h d or i ng
e 0() to

CVLR mus sow Si ies,ameiorousdee e alc o unfi prj c t teop i
t h smeln s
t
rt i
fns, a k f ar eudie o h posng
pat a d e pto lcrumsa e . Wene ,7 F. a 207. t moi und rRul 60b
ry, n xce ina ic tnc s' r r 31 2d t
'
$ ton e e ()
A
mus bema wihi ara o bl tme a f ra o () ( ,a ( nomor t n ayer
t
de t n e s na e i
nd or e s ns 1, 2) nd 3)
e ha
a
afe t e ty o te ...or r.... Fe R.Ci P.60()1. l lgh oft sr e Ifndt t
tr he nr f h
de
' d. v.
'
c( ) n i t hi ul, i ha
CVLR hasm e t tm elnes pr oft t eshol r r ent
t he i i s ong he hr
d equiem .

W ih r pectt t m ovi pary' oblgaton t s
t es
o he
ng t s i i o how a m ert i def e,t Fourt
ior ous ens he
h
Cicui has sat t a û ert i def e r r a pr f ofevi
r t
t ed hat l iorous ens equies ofer
m
dence w hi woul per i
ch
d mt

afndng f rt ( ng pa tl.... Au sa Fi r as Co i ,I c v Fod Co r tn
i i o he movi ry
' gu t be gl s atngs n . . or ntac ig
'

Cor ,8 F. 8 ,81 ( h Ci.1 )(iainso te ) I t i tn c s ,CVLR ha
p. 43 2d 08 2 4t r 988 ctto mi d . n he nsa t a e
t
s
atac
t hed an e bi t is moton t cont ns tne f s' r atng t t of t non- t
xhi t o t
i hat
ai G w act ' el i o wo
he
pary

vitm sofM r.W ynne' aleged r
ci
s l
acket i conduct Iw ilass e,wihoutdeci ng,t t s
eerng
.
l um
t
di hat hi

exhi t s tces t f fl CVLR' r quiement under August Fi gl s t pr f r suf i ent
bi ufi
o ulil
S e r
a ber as o of e
fci
evi
dence.

To b s r,wee l t ga CVLR te rlefi rqu t i is Rul 60( moton,
e ue r o rnt
h ei t e ess n t
e b) i

Dee nswoul bepeu c d,frt ode dimisng CVLR' c s woul bewi da y,
fnda t
d rj die o he r r s si
S ae
d
pe wa

t f ci Dee nt ba k it ltg to i t s Co t Bu n a1prj c i uf r
hus or ng fnda s c no iiain n hi ur. t ot l eudie s nai
prj die a i i no o oust tte flng o a he a nde c an wo d u ary
eu c , nd t s t bvi ha h ii f not r me d omplit ul nfil
prj dieDee da s W hiegrntng s hrle wo d u qui c l pr rc t smat a
eu c fn nt. l a i uc eif ul ne vo aly otat hi ter nd
caus Def
e endant t i addii cos si def ng agai tt acton,s a e t i r a e
s o ncur tonal t n endi
ns he i uch r he nva i bl

c e ue e ofa d ii t v c t aj me orore purua tt Rul 60( . Thee
onsq nc s ny ecson o a ae udg nt
d r s n o e b)
s
rs t wee s ey c tmpltd pi t Rue 6 b)s pomulain. To t e e t t
euls r url one ae ror o l 0( ' r g to
he xtnt ha

Dee da t cl m unf rprj c frs oh rrao irmansunkn t meb a s t y
fn ns ai ai eudie o ome te e sn,t e i
own o
ec u e he
have el ed nott r
ect
o espond t CVLR' m oton w ihi t tme perod pr crbed f doi so.
o
S i
t n he i
i
es i
or ng

Se W . Va. v. 1 () l Cd e sot r s die td byt Co t t op ig pa t mus
e D. Ci R. 1 c ( ) unls he wie r ce
he ur, he posn ry t
fl a r ponsve bri and s s
ie es
i
ef
uch uppori docum e s as ar appr i e wihi 1 days afer
tng
nt
e
oprat t n 4
t

sr c ....) Ac odi y,Iwilas a s , t utde di t tCVLR ha s
evie '. c r ngl
'
l lo sume wiho ci ng,ha
s hownalc
ak

ofu ar peudie t t op ig pat Si lry Iwila s t tCVLR h sown
nfi rj c o he posn ry. mial, l sume ha
as h
exceptonal cicum sances gi t t gr
i
r
t
ven hat he ounds on w hi CVLR s
ch
eeks r i under Rul
elef
e

6 b
oth-na y,n wl dic vee e de ea fa - al tbydei ton i yt prsn
mel e y s o rd vi nc nd rud mos
fnii mpl he ee ce
ofe
xceptonalcicum s a
i
r
t nces notw ihi CLVR' contol
t n
S
r .

Ther or lw ilas um e,ar
ef e, l s
guendo, t tCVLR hasm e t af em entoned t es d t
ha
t he or
i
hr hol o

pr pe l ldgea Ru e60( moton. Ho ve ,a t f lowi dic son ma sce r CVLR
o ry o
l b) i
we r s he ol ng s us i
ke la ,
h fie t de taeavai Rul 60 b)cli .
as a ld o monsrt
ld e ( am

6

A .Newl Di
y scovered Evi
dence

A courtm ay releve apart fom an or t ti hasent ed i new l di cover evi
i
y r
der ha t
er f
y s
ed dence

t a c ul n ha be n u a t d w ih r as na e dii n e b co e a ia e. Fe R.Ci P.
h t o d ot ve e ne rhe t e o bl lge c e m s va l bl
d.
v.

60b() Howe r mos oft fct ale e byCVLR i Ex biA aeno n wl dic ee a
()2 .
ve, t he a s lg d
n hi t r t e y sov rd t

al;rt r t maoiy c n be f nd i prvi sieai o CVLR' c an,s e n
l ahe, he j rt a
ou n e ou trtons f
S omplit ome ve
appearng ver tm . Thus,m any oft dnew l di cover 'f t bearon l i uest 1have
i
ba i
he d y s
ed' ac s
egal ss hat

ara c i rd,a d a s h,c n ts or a Rul 6 b)moto Se Unie St esv
le dy onsdee n s uc a no upp t
e 0(
in. e td at .
Wilams 67 F. 31 31 (t Ci.1 2)(i e6 b doe no a t rz amoinmeeyf
li , 4 2d 0, 2 4h r 98 i
Rul 0() s t uho ie
to rl or
rc nsd rtonofalga is .).
e o ieai
e lsue'
Tha bei sai Exhi tA does cont n cert n pr ousl unas t f s,s ast
t ng d,
bi
ai
ai evi y
sered act uch hose

s
umma ie i Pa t1 s pr Howe r t y f lt s por CVLR' Rul 6 b moton f a
rz d n r , u a.
ve , he ai o up t
S e 0( ) i or t
l tone,i notal,oft ee ditnc r ons. Fis,CVLR has not a
eas
f
l
hr s i t eas
rt
dequat y s t i ed is
el ubsantat t
s
ugges i t t
ton hat hese f s coul not wih r onabl dii nce, have been dicover and
act
d
, t eas
e lge
s
ed
aleged eari i t cour e of t s ltgaton. l ed, sm pl i r of M s.M ar h and M s.
l
ler n he
s
hi ii i
nde
i e nquiy
s

Fose woul h ve ld CVLR t t dic e y of s me of t a orme ine deais (or
tr
d a e
o he s ov r
o
he f e nto d t l f
e mpl,d t s a
xa e a e , moun s ec. r g r ngM r W ynn spu pore fa
t, t ) e a di
.
e' r td r ud.
Second,alhough 1acceptt a m odi oft evi
t
hat
cum
he dence cam e aboutaferA pr l2,201
t
i
2,
vit l none ofi w oul change CVLR' com pl nti any m at i w ay i Iper it CVLR t
rualy
t
d
S
ai n
eral
f
m ted
o
amend i once agai Forexam pl CVLR m ai ai t t f t r at t M s M ar h cam e t
t
n.
e,
nt ns hat he ac s el ed o .
s
o

lg b c us WelsFag i tae aj ca f e os ea ton a i the on Aprl7,201
iht e a e l ro niitd udiil orcl ur ci gans r
i
2.
However i is frs am ended com pl nt CVLR ass td t M r.W ynne was a t ptng t
,n t i t
ai ,
ere hat
tem i o
per uade W els Fargo,t hol ofM s M a sh' delnquentnot t f ecl e on M s M ar s
s
l
he der
. r s i
e, o or os
.
sh'
pr rt The f t t sf ecl e pr
ope y.
act hat hi or osur ocesshasnow been i tat does notchange a hi
nii ed
nyt ng;

r t e , i sm pl s bsan i t s a a l a i c t i e w ih CVLR' a en d c pl i t t t l
a h r t i y u t ta e n leg ton on a n d t
S m de om a n ha
aleady accept astue and t i o accountatt m oton t dim i s age oft s ltga i
r
ed r
ook nt
he
i o s ss t
hi ii ton.

Thid, and m os i
r
t mporanty,even i 1 accept as tue al of t alegatons cont ned
t l
f
r
1 he l i
ai
w ihi Exhi tA ,a even i I i e t m any i
tn
bi
nd
f gnor he
nconsit es be ween t e alegatons and
senci t
hes l i

t e a l ga i ns co a ne w ihi t pr vi us ve sons of CVLR' c pl i t CVLR ha
hos le to
nt i d t n he e o
ri
S om a n ,
s
dem onsr ed no lkelhood t a s
tat
i i
hat econd am ended com pl nt woul be abl t over e is
ai
d
e o
com t

f l e t sat a cl m underRI ,w hi was ofcour t f
aiur o t e ai
CO
ch ,
se, he undam ent r on f dim i i
al eas or s ssng
CVLR ' cas For i t
S e.
nsance,t f t CV LR has l ned fom M r W ynne' hand- rten
he act hat
ear
r
.
s
w it

a c n i t t h ne r a t ly l ne M s Fose $ 000. d s n s r t rbutmy
c ou tng ha e ve cual oa d . tr 40, 00 oe ot e ve o e
concl i of A pri 2, 201 t CVLR has f ld t m eet t contnuiy as
uson
l
2, hat
aie o
he
i t pect of t
he
dc i t pl r atonshi 't tdevied f RI cl m s See H J I v.Nw.Bel Tel Co.
dontnuiy us el i
p' es
s or CO ai .
nc.
l . ,

492 U. 229,239 ( 98 . No wihsa n t ne p e c t a tofba fa t tCVLR
S.
1 9) t t tndig he w r dia e c
nk r ud ha
w oul i por e i o a second am ended com pl nt as i concer M r. W ynne' conduc
d ncor at nt
ai
t
ns
s
t
t dsM s.M ar h,i i cl t m e t t f scont ned w ihi Exhi tA ,even i accept as
owar
s t s ear o
hat he act
ai
tn
bi
f
ed
tue i t r e iet coul not hel CVLR show t s t of cl
r n hei ntr y,
d
p
he or
osedended or openended
contnuiy t i neces ar t pr
i t hat s
s y o oceed wih a RI cl m . Fort
t
CO ai
htse r
easons Itnd t tCVLR
, s ha

ha fie t ma terquiies wi frrle u rRul 6 b ( .
s ald o ke h e st ho ng o eif nde e 0()2)
B.Fraud,M i
srepres aton,orM iconduct
ent i
s

Alho h CVLR sae t ti i as mo ngf rle purua t Rul 60( () whih
t ug
tts ha t s lo vi or eif s nt o e b)3, c
cove faud,m i epr ent i orm i conduct i ofer not ng beyond cia i t t r e is f
rs r
sr es aton,
s
hi
t ton o he ul t el
, t f s
t s t ntat t s gr
o ubs a i e hi ound. Fort r
hat eason al , CVLR has f l d t dem onsr e a vald Rul
one
aie o
t at
i
e

60b()cam. Brel 1as poi o t tsmpl b c us t u ryig RI vi ains
()3 li
ity, lo nt ut ha i y e a e he ndel n CO olto
alegedl com m it by M r W ynne i ved faud, m ire es aton,or m iconduc does not
l
y
ted
.
nvol
r
s pr ent i
s
t

8

e il CVLR t r y o Rue 60 b ( i ise f tt v c et or rdimisn isc s . Rue
ntte
o el n l ( )3) n t for o a at he de s s ig t a e l

60( ( pemis aj dg ntorode t be v cae whe t co c oft op i pat
b)3) r t u me
r ro
a td n he ndu t he posng ry
prve td t f raj cton oft movng pat scams no whe te op i pat i
e ne he ai dudiai
he i ry' li , t n h posng ry s
accus of ha ng e
ed
vi ngaged i s
n ome sor of f audul underyi conduct As such, Rul
t
r
ent
l ng
.
e

6 ( )3 rpe e t an ro go n frr l f S eGr a Co sa Ex es Ic v 1 t fJ 0
0b( ) e rs ns arw ru d o ei e e t a tl prs, n . . n 1 Z /
e
he equi t
T amse s 675F.d 1 49 1 6 ( h Ci.1 2) Uli at y,CVLR has notm ade t r sie
e t r,
2 3 , 35 4t r 98 . tm el

aied o
crbe
s
s owi fr rlef und Rul 60b)3) as i has f l t des i any m iconduct or
h ng o ei
er e ( ( , t

t monsrt t ts h mic uc pr e e gt fo f l a fil pesni (tlcl m
t
de tae ha uc sond t ev ntd il rm uly nd ary r e tng is ai
Squa eCon t.Co.v Wa h.Mer Ar a T an iAuh,65 F. 68,71(t Ci.1 1
r
sr
. s
to. e r st t. 7 2d
4h r 98 )
( iai o te )
ct tons mil d .

l .CONCLUSI
V
ON

Fo t raonssae heen,CVLR' moi pus ntt Rul 60b)s lbed nid.An
r he e s ttd ri
S ton rua o e ( hal e e
appr it or accom pani t sm em or
opra e der
es hi
andum opi on.
ni
The C l k of t Cour i her diec ed t s a cerii copy oft s m em or
er
he
t s eby r t o end
tfed
hi
andum
opi on and t accom panyi or t al couns ofr d.
ni
he
ng der o l
el ecor

Ent r t s
e ed hi

day ofM a 2012.
y,

-

>

NO AN K .M OO
UNI
TED STATES DI
STRI JUDGE
CT