International Fidelity Insurance Company v. Western Virginia Water Authority

Filing 70

MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 10/30/2012. (ssm)

cu s OFF CE u, . SK COURT
ERx'
I
s DI
AT ROANOKE,VA
FI
LED

I THE UNI
N
TED STATES DI
STRI COURT
CT
FOR THE W ESTERN D I
STRI OF VI W I
CT
RG A
RO AN OI D I SI
CE VI ON

02T 39 2 1
02
JUU C.
DUDL ,
EY

BY ye oo
; m

Eu bn )
pwciK

I TERN A TI N AL FI ELI I SU RAN CE
N
O
D
TY N
COM PAN Y ,
Pl i if
a ntf
Ci lA c i N o.7: 1 c 00441
vi ton
1 - v-

W ESTERN V I I I W A TER A UTH OR I ,
RG N A
TY
D ef nt-hid- r y Pl i if
enda /f r pa t a ntf

M EM O M N DU M O PI I N
N O

FI ST STA TE BA N K
R
Md

By: Hon. l E.Conr d
G en
a
Chi fUnie Stt DititJ e
e
td a es src udg

CARNELL CONSTRUCTI CORPORATI ,
ON
ON
Thid- ry De e nt
r pa t f nda s.

W e tr Vign aW ae Auh rt CW uh rt ',h d fn a t n t id p ryp an if
sen r ii tr t o i
y
to iy' te ee d n a d hr - a t litf
)
i t scae,fl ac anta i tFis Stt Ba (Tis Stt')a CanelConsr ton
n hi s ied ompli gans rt ae nk l rt ae' nd r l
tuci

Co p rto (t r e1) algngcamso c mmo lw id mn t to a du j t nrc me t
r o ain t n l', le i li f o n a n e i in n nus e ih n,
Ca '
ka

a ds e i d ca ao yj d me ti isfv r Cu rn l b fr tec u t steAuh rt '
n e kng e lr tr u g n n t a o . re ty eo e h o r i h to iy s
moin frsl r j d me ta ans Canel Fo tera o sta flo tec u t l ga t
to o l
mmay u g n g i t r l. r h e s n h t o lw,h o r wil rn
i pa t de i pa tt m o i
n r and ny n r he ton.
1.

Fact and ProceduralBackaround
ual

Thi c s aie fom amulipat c r cua dipueove aconsr to pr e o t
s a e rs s r
t- ry onta t l s t r
tucin ojd n he

Fal gCre Da i Be od, r ii (drj c ,Th c u t a ara y is e t
li e k m n dfr Vign a t oe f) e o r h s le d su d wo
n
p

ERK

me or ndum opi onsi t ca edeaii t f c sa outi ng t naur oft dipu es
m a
ni n he s t lng he a t nd lni he t e he s t .
The f l ng f c sar t em os r lva t t Au hort scai agans Cn n l
olowi a t e hos
t ee nt o he t iy' l m
i t r el.

Th Auh rt e trdit ac nrc (co ta f'wi Ca n lf rg a i ga dst wo k
e to iy n ee n o o ta t t nrc ) t r el o rd n n ie r
t
h

o teP o e t Aspat ft Co ta tt Au h rt wa t r ti 5 o t en u trq e td
n h rj c.
r o he n rc,he t o i s o ean % f h mo n e u se
y
on e chpa nta i a i s bm itd by Car l. Thea i ai ac
a
yme pplc ton u te
nel
pplc tons knowldgedt tt
e
ha he
Aut iy had r t ne 5% ofa1pr vi pa m e s a t t5% oft c rntr ques woul
hort
eai d
l e ous y nt , nd ha
he ure e t
d

as b rti d ( c t 5 - , .1)
lo e eane . Do ke No. 0 1 Ex .
Bewe n Se e r2009 a De mbe 201 t Aut iy f r r f re n c c
t e pt mbe
nd ce r 0, he hort o wa ded ou te he ks
f t 5 r ' i get Fis Stt ,i e ng t tt y bede ied i a e c ow a count a
or he % et na o r t ae nt ndi ha he
a
post n n s r c
,s
p ovi d f i a es r a e m e bewe t pa te .Howe r t c c di no cea l
r de or n n c ow gr e nt t en he ris
ve ,he he ks d t l ry
i c t t tt y s ul ber t i i as pa a ea c . Asar s t t c kswe e
ndi ae ha he ho d e aned n e r t c ount
e ul,he hec
r
de ie i Cn n l' busne ss vi a c
post d n r e ls i s a ngs c ountwih Fis Stt
t r t a e.

I tr ain lFiei I s r n eCo a y (I C' h dp e iusye trd it ab n
n en to a d lt n ua c mp n %FI ' a rv o l n ee no o d
y
1 )
a e m e wih Ca ne lt s ts y any va i c a m st tCa ne l s s ontac or m i hta s r i
gr e nt t r l o a i f
ld l i ha r l' ubc r t s g s e t n

t ee e t r l fie t p yf rmaeil o lb rp o i e o tePrjc .Th bo dwa a
h v n Canel ald o a o tras r a o rv d d n h oe t e n s
c ton oft Co r c bewe n Ca nel a t Aut rt a wa e e sy ma par oft
ondii
he nta t t e r l nd he ho iy, nd s xpr s l de t he
Co r c .
nt a t

Pro t t ec mpeino tePrjc, n o Cnn l' s b o ta tr, e g s n
ir o h o lto f h oe t o e f r els u c nr co s F r u o
Entm rs ,m a a ca m a ns t bond a ar s tofCn n lsf ilr t pa Fe gus f r
e ies de li gai t he
s e ul
r el' alze o y r on o

mae il p o i e t teP o e t Aciga s rt I C padFeg s n $ 65 14 t stl t e
tras r v d d o h rj c. tn s u ey,FI i r u o 28 ,7 .4 o et h
e
Cl i .
am

Afe I C notfe t Aut iy t ti hadpa d Fe g on' cam a ns t bond,t
tr FI
iid he hort ha t
i r us s li gai t he
i
r que t d t tt Aut iy pay t I C a lr m ai ng f
e s e ha he
hort
o FI l e ni undsdue t Ca ne lunde t Cont a t
o r l
r he
rc,

i l ngt r t i
ncudi he e anagea o mt On Jme 1 2011 Cn n lag ee i m i i t tI C s ul
m t .
t 4,
, r el r d n tng ha FI ho d

r cevet r i roft Conta tba a e $33 8 98 a wel a t $85, 3 t twa
e i he ema nde he
r c 1 nc , 65. - s l s he
823.3 ha s
s
uppos dl benghed i r t i gewih Fis St t
e y i
l n e ana
t rt ae.TheAut rt pai I C t $33, 98
ho iy d FI he
865.
r m a ni o t Cont a t and die t d Fi s St e t r e e t r t na t I C .
e i ng n he
r c,
r c e r t at o el as he e ai ge o FI

Onl s m etme ltr a trt i tt ton ofI C' s t di t Aut rt l a. t tFis
y o i ae , fe he nsiu i
FI S ui, d he ho iy e l ha rt
n
Stt ha neve esa ihe a es r a co . TheAut iy a lgest tCa nel,i t Jme
ae d
r tbls d n c ow c unt
hort le ha r l n he t
1 2011lter a we lasi num e ousc
4,
et , s l n
r
onve s tonsbe wee r pr s nt i oft pa te ,
rai
t n e e e atves he ri s
ne i caedt ti hadbe n r c vi t r a na c ksal a ong.
ver ndi t ha t
e e ei ng he eti ge hec 1 l
I is s ta i tt Aut iy, FI s htt r ove t r t i ge s ,a l i t t
n t ui ga ns he hort I C oug o ec r he e a na um leg ng ha ,

ass ey, twa bo h m sgne a s oge ofCa nel' r mani rght i t Con r c . Thi
ur t i s t s i e nd ubr e
r ls e i ng i s n he ta t
s

c tta e a or r d t Aut iy t pa I C t $85823. t ts dha be n
otr gr ed, nd de e he hort o y FI he , 33 ha houl ve e
r t i i e c ow . 1 TheAut iy now as t c t o o de Car l t i m niy t
e aned n s r
hort
ks he our t r r nel o nde f he

Aut iyf is$85,23. la lt t I C,ort or rCa e lt digor t ta oun t t
hort or t
8 33 ibiiy o FI
o de m l o s ge ha m t o he

Auh rt t e acam o unu te c me t Th Auh rt as s e d ca ao yrle,nt
t o iy md r li f j s mi h n. e to iy lo e ks e lr tr eif i he
f m ofa or s a i t tt A u hort i notla e t I C f a t pa d po ton oft
or
n der t tng ha he t iy s
i bl o FI or ny m i r i
he

c r c balnce I r pl Cn nelsc
onta t a . n e y, r l' ouns lfld abrefsa e
e ie
i tt menti c tngt tisci nt
ndi ai ha t le
i e t m akeno s t n i r s
nt nds o
ubs a tve e pons t t m o i nort ke a f r he s e t de e is f
e o he ton,
a ny u t r t ps o f nd t el
i t ltga i
n he ii ton.
II.

D i si
scus on

A.

St
andar ofRe e
d
vi w

Att s
he ummayj
r udgme sa ,t c ur e mi sE t rt e denc prs nt a
nt tge he o t xa ne s he he vi e e e s
whe

s fiin ds g e me t orq ies b sint aj r o wh te ii s o esd dta o e
u fce t ia r e n t e ur u miso o u y r eh r t s o n -ie h t n
pa t m us pr va la a m a trofl w . A nde s v.Li r v Lob I .477 U . 242,251 53
ry
t e i s
te
a '
'
r on
be t
bv. nc
S.
-

1 c u tee tdII Scam ta iwa e tldt ri u sme to te$ 8 ,714 ip i t Feg s n
The o rrjce F C' li h t t s nie o emb re n fh 2 65 .4 t ad o ru o .
t

( 98 ) Su r j d me ts lb ga tdwhe kh p e dn ,h d s o eya dd sl s r
1 6 . mmay u g n hal e rn e
n ç e la igs te ic v r n ico u e
t
m ae il on fl,a any a fda t s t tt r i no ge nediput a t a m ae i lf t.
tra s ie nd
fi vis how ha he e s
nui s e s o ny t ra ac

' Fed. Ci Pr 5 c .
'
R. v. o. 6()

. . .

B.

A nal i
ys s

i
.

I m nii aton
nde f c i

I CountOneoft a
n
he mend t r pa t c
ed hid- ry ompli , heAu hort al sac
ant t
t iy lege omm on 1w
a

i e iiaincam a ans Can l.I b o dtr ,n e i i t E)d t t ma eg o a y
nd mn fc to li g i t r el n r a ems i d mnt s ç a uy o k o d n
y i
l s, a g , rla ii i c re b a oh r' a wel stt erg to a ij rdp ryt cam
o s d ma e o iblt n u rd y n te ,' s l a t h ih f n n u e at o li
y
'
t
r mbur e e tf isl s da
ei
s m n or t os , mage o la lt fom ape s n whoha s h adut ''Ha
, r ibiiy r
ro
s uc
y.' nove
r

l .Co.v.Co rr Co ni .nc.31 F.Supp. 81 8 ( D.Va 2003)(uotngBl k'
ns
rp o mpa es I , 2
2d 6, 21 E. .
q i ac s

La Dito a v7 2 (t e 1 9 ).C h r a et t p sof n e iy 'ex r s id mnt
w cin r 7 7h d. 9 9 ) s ee r wo y e i d mnt : l lp e s n e i
f
y,
bas on awrte a e m e , nd i pled i mniy,a ii ou oft r ltons p oft
ed
itn gr e nt a m i nde t rsng t he ea i hi
he

pa tes''d.( i 98 Mihi sJ rs u nce I mniy,j2, t487( 995:.Vigi a1w
ri .'I quotng
c e' u ipr de , nde t
a
1
r ni a
r cog z aca eofa ton bas d on i id i mniy. S oneli e Co m i um Uni
e nies us
ci
e
mple nde t t tdc ndo ni
t

Owne s Asocai v. M .Tur ra Compa I ,
r ' s iton J.
ne nd
nv.nc.2003W L 2205 79,a *1( Ci.Ct
21 t Va. r .

J l 1 , 0 3(iigVi ii Elc & Po rCo. W is n 2 Va 9 9 9 -2 ( 9 1)
uy 4 2 0 ctn m na e . we v. lo , 21 . 7 , 818 1 8 ).
l ple i m nii to m us ,howe r a i e f om a unde l i c r c ua r l tons p
m i d nde fca i n
t
ve , rs r
n
r y ng onta t l e a i hi

bewe n t pa tes Vici aEl & Po rCo.221Va a 981 82. Eve whe acon r c ua
t e he ri . r ni ec.
we
,
.t n
n
ta t l

rlto hpe it,t idrg ts t id mnt ma b ra i t . . o ta tl o l ( n
eains i xss tmpl ih l) o n e iy y e e d no . c nr csq ny whe )
i e
uni f t s ora s c a r a i hi be wee t pa tesgi r s t s h a rght'
que ac or
pe i l el tons p t n he r i ve i e o uc
i .
'

Trns l Ct.I v.USX Co'.976F2d21 228( hCi.1 .
a Dules r nc.
1,
p
9, 4t r 992)
The Supr m e Co toft U nied St t s ha a r s e c rai i t nce w he e a uni
e
ur
he t
a e s dd e s d e t n ns a s
r
que
r l tons p be wee t o pa te s i d a rghtt i m nik a i no e es l s a ed i t
e a i hi t n w
ri s upple i o nde t ton t xpr s y t t n he

4

pa te c r t Fore m pl i Ryan St dorng Co.v. n- ta i S. Cor ,350 U .
r i s' ontac .
xn e, n
eve i
Pa A l ntc S. p.
S.

2 2( 9 6 , ase e o ewa ijle wh l t o dn as i a ars t fn gie two kd n
3 1 5 )2 tv d r s nt d ie mla ig h p s eulo e l n r o e
r
g
by t seve i co pa a apr vi por. These dor s e s u l s d t s powne
he t dorng m ny t e ous t
tve e ucc s f ly ue he hi
r

f rhsij re .Th s io e, oh l t erg t ois c a drj c tela igwok d ne
o i nu is e hp wn r wh ed h ih t n pe t n ee t h o dn r o
b tese e o igc mp n , ue tec mpa y s e n id mn t f ris ud me t ib ly.The
y h tv d rn o a y s d h o n e kig n e iy o t j g n la ii
t
Cour hel t tt s pow ne w a en il d t i em nii ton bec us oft s e dorng
t d ha he hi
r s tte o nd
fca i
a e he t ve i
c pa s'o i a i ow i g t t s powne t s o e t c r i a r ms bl s e m a
om ny' i blg ton
n o he hi
r o t r he a go n e ona y af nner'
.
'

I . t1 3(tl si o i ia) Th Co r f t t a t eHg toi e iys u h byt e
d a 3 i i n rgn l. e u t omd h t h h t nd mnt o g t h
ac
s powne a os fom t e s nc oft c nta tis l, ndt pa te 'saed o i tonsu r
hi
r r e r he s e e he o r c te f a he ris t t blga i
nde

t tco r c.J. TheCour alohedt tt se dorngco ny,d t wa rnorofis
ha nta t -S
1
t s l ha he tve i mpa l he ra t
as
t
ow n s r c c nnotus t s po wr s f iur t di c ra c r tt c r t ' own
e vi e, a
e he hi m ' a l e o s ove nd or ec he ontac or s

bra ofwar nt asadee e' J=a 1 35.
e ch
ra y
fns .' # t 34TheFourh Cic t a yi Vigi al w, a s f
t r ui, ppl ng r ni a has l o ound a i pled rghtof
nm i i

i mnii to i c rai crumsa s l Ge r El ti Co. M ort,270F. 780( h
nde fcain n e t n ic tnce . n neal ecrc v. ez
2d
4t

Ci. 9 9 ,h Co r o d rdac mmo c nirt id mn f as ipigc mpa y frl b l y
r 1 5 )t e u t r ee o n a e o n e iy hp n o n o i ii
a t
o dt a ij rdtu kd ie .Th Co r f u dt ttes e il au eo tes ipigid sr ,
we o n n u e r c rv r e u to n ha h p ca n t r f h hp n n u ty
a t i or a i off de alsaut sa r g a i i o s ppi c r t s t e t c e t
nd he nc por ton e r t t e nd e ultons nt hi ng ontacs ufk d o r a e
t uni f c or nec s r t fnd a i i rgh ofi mniia i
he que a t s es a y o i n mpled i t nde fc ton.

Mo er c n l, o v r teFo rhCic i h srjce camsb sd o i le
r e e ty h we e,h u t ru t a ee td li a e n mpid
i m nii t o no i t l c o a s c a r a i hi o t i ue f c or . I Tr ns l
nde fca i n, tng he a k f pe i l el tons p r m q a t s n a Dules

Ce e .l v.Bd.ofSupe vs sofLoudonCo y,97 F. 21 228( hCi.1 ,t
ntr nc.
r ior
unt 6 2d 9, 4t r 992) he
Cou the d t tan ar hie t soblga i n t s ts y l a buidi c
r l ha
c tc'
i to o a i f oc l l ng odesdi notgi a c r t
d
ve ontac or

2Thtr s ti Rva wa o r edbyt Longs e e sa Ha borW or r 'Compens tonAc Am e e sof
e ul n
n s verul
he
horm n' nd r
ke s
ai
t
ndm nt

1 2 S e3 U. C. 9 (9 2 ;e as Lo k e dAica Cop v Uni dSae, 6 U. 1 0 1 (9 3 .
97 . e 3 S. j 05 1 8 ) se lo c h e rrh r . . t tts 4 0 S. 9 , 98 1 8 )
e

a i ple rg ofi mni a i t a t ne sf e i as twhe et c r t wa f
n m id i ht nde sc ton o tor y' e s n ui
r he ontacor s ound

la l t t prjc o e.L.a 2 8 Th Co r h l t a t a re n bewe nteac ie t
ib e o he oe t wn r d t 2 . e u t ed h the g e me t t e h rht c
.
o
a t c r c o wassmpl a o di r s r iesc r tt tc dno ha an i paed a
nd he onta t r
i y n r na y e vc ontac ha oul t ve tci t

c iin ofi mniiai J .Si l l i I enai lSu pl Li I . v.Marh&
ondto nde fc ton. #z miary,n ntr tona r us nes ns Co.
s

M cwr n l c, 3 F.d 1 4 1 6( t Ci.1 8 ) teF u t Cic ih l ta i id
lema . n .8 8 2 2 , 2 4h r 9 8 ,h o rh r ut ed h t mpl
e
i e iiainwa no j siidwh n a is r n ec ni rs e a is rn ebrke f rf n s
nd mn fc to s t u tfe e n n ua c a e u d n n u a c o r o u d
t c ri rwa oblga e t pay o a ca m. I a 1 .Thec re ar edt tt br rhad
he a re s i t d o
n li d. t 28
arir gu ha he oke
br ac d isfducar dut t t c rirb wihh di i
e he t
i y y o he a re y t ol ng mporan c r gei or to I a
t t ove a nf mai n. d. t

1 7.Th Co r h l t a th rlto hp gewe nt ec rira db o e)wa a o dn r
2
e u t ed h ts e eains i b t e h are n r k r s n r iay
t
i ur nc br r e a r nge e .... fa i id co r c f i mnii a i wer f md he e
ns a e oke ag ra m nt I n mple nta t or nde fc ton e ot
r,
i i pos i e t te r i ur nce br rwoul i e f c , o e an i u e .' l a 1 l s
t s s bl ha ve y ns a
oke
d, n f e t bec m
ns r r' d. t 28. n o
r i t Cour not d t tt ca re ' r que tf i m ni a i w a unus i t t t
ulng, he
t e ha he r i r s e s or nde fc ton s
ual n ha he

alg db e c o d t wa o ds ll t t poe ta id mnte(h c rir, n n tt b t
le e r a h f uy s we o ey o he tniln e ie te are) a d o o oh
t ei d mntea datidpat (h c rira dt ecama t.I a 1 7 TheCo r h l t t
h n e ie n h r ry te are n h li n) d. t 2 .
u t ed ha
pa t wha m a t sa ( di y'c r c ,a t onelc ngt s cilr ltons p
r of t de hi n û nar ' onta t nd hus
or
a ki he pe a ea i hi

r quiedt i y arg ofi mniiai wast tt br rowe nodut tot g ama )
e r o mpl iht nde fc ton, ha he oke
d
y E he cli nt
t

t a wa b e c e c u igijt t t egli n) ( ec rir ma epa me t t te
h t s r a h d a sn nt y o h cama t. Th arej d y n s o h
r
gli n )u d rteds u e c v r g o tela ii is rn ep lc n t e a s o te
cama t n e h ip td o ea e f h iblt n u a c o iy, o b c u e f h
y

b e c o s med t o dt e(li n)b t e(r k r. L.
r a h f o u y we h cama t y h b o eq' d
' a
The f c s oft c e a ha a e ditngui ha e fom Tr ns l s a M a s &
at
he as t nd r s i s bl r
a Dule nd r h
M cle n, t c r c ua r l to hi be we t Aut iy a Ca ne lpr s t l i
a nna and he ont a t l e a i ns p t en he hort nd r l e en s m que
a s i f c or c e tng a i pled r g ofi m nii a i n. As a i talm a t r t
nd pec al a t s r a i n m i i ht nde f c to
n nii
te , he

Aut iy wa f md la et I C f t r ti e a o a ali r tr ul ofCn n l'
hort s ot ibl o FI or he ea nag m unt s l ndiec es t
r e ls

6

orgi br ac ofisoblga i t pa iss bc ta t s Tha br a h c e t d aco r c ua
i nal e h t i ton o y t u on r c or . t e c r a e
nta t l
oblg ton f Ca nel t dei t unpad pori oft Con r c baanc aswe la t
i a i or r l o lver he
i
ton he ta t l e,
l s he

rtia ef n s t atidp ry(F C) I i t b e c o ti d t Cn n l' o lg t nt
ean g u d ,o hr -a t 1 1 . t s he ra h f h s uy r els bi ai o
o
r lnquih s st I c- t tt Aut iyhasbe n f r e t s ul r Ast Cour notd i
ei s um o Fl ha he hort
e o c d o ho de .
he
t e n
M arh & M c nnan t put i i mnio ' br a h o a d y owedt t s m et r pary
s
Le
, he atve nde t r s e c f ut
o he a hid t
a i twho t pl i ifs kst bei mniid i t o di r s tofcr umsa esi whi h
ga ns
m he antf ee o nde fe s he r na y e
ic t nc n c
t fndan i id rg ofi mniy.l
o i
mple i ht nde t d.
Se ondl t Conta tbe w e n t pa te an i i t t pos i lt t tt A u hort
c y, he
r c t e he ri s tc pa ed he s biiy ha he t iy

wo d ha t pa Ca n lss nta t si t e ntCa nel di notm e tisoblg tons The
ul ve o y r el' ubco r cor n he ve
r l d
e t ia i .
Aut iy lkel r uie Car l t o an abo a t n i or a e t bo i t t
hort i y eq r d nel o bt i
nd, nd he nc por t d he nd n o he

Co ta i o d rp o e is l i c s o j s s c a e e t Th p y n a pl ains
nr d,n r e r td tef n a e f u t u h n v n . e a me t p i to
c
s itd by Ca ne lr te t d Cn ne lsoblgai t iss onta or ,a wel ast
ubm te
r l el c e r l' i tons o t ubc r ct s s l he
Aut rt sbo ng r quie nt Thea i a i i ude t sa e e :
ho iy' ndi e r me .
pplc tons ncl d he tt m nt

The t ri d Contacor c rii t t ( ) alprvi pr es pa nt
mdesgne
r t e tfes ha : 1 l e ous ogr s yme s
r e ved f o O wner on a c
ec i
rm
c ount of W o k done unde t Contac ha be n
r
r he
r t ve e
a i on a co mt t dic r e Contacors lgii t oblgai ns i ure i
ppled
c t o s ha g
r t ' e tma e i to nc r d n

c l ci nwih W o k c v rd b p i rAp lc to f rP y n ;()tteo al
ome to t r o ee y ro piains o a me t 2 i f 1
l
W or ma e i s a e pme i por t d i s i W o k oro he wie lse i
k, t ral nd qui nt ncor a e n a d r
t r s it d n
orco r d by t sApplc ton f Pa m e twilpa st Owne a tm eofpa e
ve e
hi
i a i or y n l s o
r ti
ym nt

feea ce rofa1Lins s c iy i ees a e umbrnc (xc pts hasae
r nd la l e , e urt ntr t nd nc a es e e uc
r
co r d by a Bond a e a e t Owneri mniyng Owne ag ns a s h
ve e
cc ptbl o
nde f i
r ai t ny uc

Lins s c iy i ee t o e umbrnce) a ( a1 W or c r d by t s
e , e urt ntrs r nc a s; nd 3) l k ove e
hi
Applc ton f Pa
i a i or ymen i i a c d ewih t Co r c Doc nt and i not
t s n c or anc t he nta t ume s
s
def c i
e tve.

( ke No.50- , bi 9.
Doc t
1 Exhi t )
Car l alo a knowl d i ispa nta i ai t tt Aut iy ha r t i d 5%
nel s c
edge n t yme pplc tons ha he hort d e ane
oft pr vi pa e r ques s Thi c i d e n afe t r t i ge c c ha be n
he e ous ym nt e
t . s ontnue ve t r he e a na he ks d e

de ie diecl i oCa lsa cot .J Furhemoe,Car l manti a lt a J
postd r ty nt nwl' c mt .
Z
tr r
nel i aned s ae s une

1 2011t ti co e e t ha ngt r ti ge a mtpa dt I C,abetou off
4,
ha t ns nt d o vi he ea na mot
i o FI l i t undsfom
'
r
t s
he uppos d e c ow a coun .
e sr
c
t
l o he w or , he a e e be wee Ca ne la t A ut iy w a notan t di r '
n t r ds t gr em nt t n r l nd he hort
s
s na y'
or
c r tbe w e n t o pa tes s h t tfndi a i ple rghtofi m ni i a i i t s c s
ontac t e w
r i , uc ha i ng n m i d i
nde f c ton n hi a e

rs st r igc nr co sit isleso terp oe to e si e r oh rc s .Th p ris
ik u nn o ta tr no n t r f h i rj c wn r n vey t e ae e a t
r
e
he ehad c r t oblg tonst tte t t oneano he t a t ua l cos deg ee
r
ontacual i a i ha id hem o
t r o n mus ly l e r .
W he Ca nelf ie t makepa nt t as
n r l al d o
yme s o ubcon r c o ,tti ge e as re ofoblgai
ta t r i rg r d e i s
i tons
bewe t pa test te m a l r s t d i t Auho iy bengla et I C f rt r t i
t en he ri ha ven ly e ule n he t rt i ibl o FI o he e anage
a o . M o eo r i i o ybe a et r t na fmdswe ewr y diti edt Ca nel
m unt
r ve , t s nl c us he eai ge t
r ongl srbut o r l
t tt Aut iy e rbe n la et I C. Thec os nes oft c r c ua r l to hi
ha he hort ve c me ibl o FI
l e s he onta t l e ai ns p
bewe t pari , we la t pa tc a f t pr s nti t sca e c
t en he tes as l s he riulr ac s e e n hi s , ompelt c r t tnd an
he ou t o i
i pled r g ofi m nii ton i f voroft Aut iy a i tCm- l.
m i i ht nde fca i n a
he hort ga ns
ne l

l.
l

Unj tEnrc nt
us
ihme

I Co Fi oft a ndedt r pa t c
n unt ve he me
hid- ry ompli , heAu hort alege acai of
ant t
t iy l s l m

l u t n ih n a ans Can l.Th Auho i a g e ta Cn n l h sb e t u tye rc d
mj s e rc me t g i t r el e t rt r u s h t r el a e n mj sl n ihe
y
by t $85, 33 r t i n
he 823. e anage mountt twa i ope l pa dt Ca n l.Ha nga r a
ha s mpr ry i o r e l vi le dy
dee m i d t tt Aut iy hasarg t i mniia i a ns Cn ne l t cour ne d not
t r ne ha he hort
i ht o nde fc ton gai t r l, he
t e

de ietet us e c me tis e I a ye e t teAuh rt i n te tte t r c v ru d r
cd h mj t mi h n su . n n v n ,h t o i s o nild o e o e n e
y
s a t or ofr i f i t sca e.
uch he y ele n hi s

Un e Vigni lw,osaeacam f ru j s e c me tteplitf mu t h w t a:
d r r i a a t tt li o nu t mi h n,h an if s s o h t
()abe ftwa c erd;( t be t i pa t knew oft be t a s ul ras bl
1 nei s onfre 2) he nem ng ry
he nek nd ho d e ona y
ha e t t rpa t c erngpat f t tbe tt a ()t be itngpa t
ve xpeced o e y he onfri ry or ha nei; nd 3 he nefti ry
ac ep e orr t i t be ttw ihoutpayi f isva ue. Cole o v.Ge r phi Se v c .
c t d e a ned he ne i t
ng or t l
ll
oa a c r i es

8

I c, 3Va 5 , 3 8 ( 1 )(iigSc mitv Ho shodFi n eCop.27 Va 1 ,1 6
n .28 . 6 8 -4 20 2 ct
n h d . u e l na c r , 6 . 08 1
( 0 :.Ho v r twl eeac nr c g v r st erlto s i o tep ris t e utbe
20 8
we e,t h r o ta t o en h eain hp f h a t ,he q ia l
g
e

r me yo u j t mi h n d e n ti . Ac r S r ct e v S n z 8 6F.d9 3 9 6( t
e d f nus e c me t o s o le' o n tu trs . wa t, 4 2 2 , 2 4h
'
l
Ci.1 .Si et pate i t sc eha ac rcua r ai hi i e t ki ofcos
r 988) nc he ris n hi as ve onta t l eltons p,nde d he nd l e
co r c ua r a i hi gi ng rs t a i i d rghtofi
nta t l eltons p vi ie o n mple i
ndemnii to s e i r t
fcai n, e nfa,he

Auh rt c n o s e r siuinu d rat e r o u j t mi h n .Se W RI M o ta e I c
to iy a n t e k e t to n e h o y f nus e c me t e - rg c .n .
t
I
v.S. S. s cits 21 F. 528,53 ( 00)CW heeac r tgovenst r ltons pof
A. As o ae , 4 3d
4 20
r ontac
r he eai hi
t pa tes t eq tbl r dyofrsiutongr mde i qua ic r torun us enrc nt
he ri ,he uia e eme
e tt i ot d n s-ontac
j t ihme
doesnot1e.) Ra ndpCol asGls & Hus . C.v. le Ca tlCor ,961F. 489,
i '; ymo
'
esr a pv
s P. Alid pia p.
2d

4 (t Ci. 9 2 ( oigt eE l stld'r l t tap ryma n t e o e i q a tl me ut
91 4 h r 1 9 ) n tn h s l et ' ue ha a t y o r c v r n u nt
we
e
m ri
a ans a o h rp rywihwho tepanifh sa e p e sc nr c o tesmes be ti
g i t n te at t
m h litf a n x r s o ta t n h n u jc n
quesi .
ton)
ii
i.

D ecl ory Relef
arat
i

I CountSi oft a nde t r pa t co pli ,t Aut iy a kst c t o g a
n
x he me d hid- ry m ant he hort s he our t r nt
deca a or r le ,or rngt tt Aut rt i notla et I C f a pori oft l i
lr t y e if de i ha he ho iy s
ibl o FI or ny ton he mpa d
co r c baan ,a t t i t a Ca ne l aong wih Fis Stt ,i labl f a s h n
nta t l ce nd ha , nse d, r l, l
t r t a e s i e or ny uc mount
.
The c thasa r a decdedt ma troft Aut iy' diec la lt t I C,a wilnot
our
le dy i he te
he hort s r t i biiy o FI nd l
r co i ri he e.Se l e a i lFi lt I .Co. W e t r Vig ni W ae Aut iv,
e nsde t r
e nt m tona de iv ns
v. se n r i a tr hort No.

7: - 00441 201 W L 235
11cv, 2
7368( . Va. pt28,201 (r tngI C' moi f
W D. Se .
2) gani FI S ton or

s mmayj d me ta an tteAuh rt a do d rn rc v r fo teAuh rt i t e
u r u g n g is h to iy n r e ig e o ey r m h t o i n h
y
a untof$85, 33) ar ul ofPa tI. i oft so ni t Aut iyc ns e
mo
823. .As es t
r IB.. hi pi on,he hort a e k
r i bur e e f rpa e sm a t I C i f flm e ofisc t de ed la lt
e m s m nt o ym nt de o FI n ulil nt t our or r i biiy.
11
1.

C oncl i
us on

9

Fort above saed r as ,hec twilg a i pa ta de i pa t heAu hort s
he
-t t e ons t our l r nt n r nd ny n r t
t iy'

moinf rsl r j d me ta ans Ca l Sp ct ly t ec u t lg a t h moinwi
to o l
mmay u g n g i t nwl. e i l ,h o r wil rn t e to t
ka
h
r pe t t Aut iy' i ple i m nik a i c a m ,a w ilde t m o i w ih r pe t
es ct o he hort s m i d nde t ton l i nd l ny he ton t es c

t t unus e c nta deca aor rle cai .
o he j t mi hme nd lr t y eif l ms
The Clr i die t dt s nd c rii d c e oft so dert a1c elofr co d.
e k s r c e o e e tfe opi s hi r o 1 ouns
e r
- zr ENTER :Thi .:. y4:4day ofOcober,2012.
s -7r.j
t
J
%
.

j#.
4.
.;

.

'
..

t,c'j' ,t i t / 6*
, o-tz
1 / ' -- ?
.
t
d, +.
,

.

Chi fUnie St t sD i t i tJ
e
t d a e sr c udge

10