Bannum, Inc. v. Samuels, Jr.

District Court, District of Columbia·Decided October 28, 2016·No. Civil Action No. 2015-1233·Published

Opinion

81,7(' 67$7(6 ',675,&7 &2857 )25 7+( ',675,&7 2) &2/80%,$ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB %$1180 ,1&

3ODLQWLII

Y

&LYLO $FWLRQ 1R  $%-

&+$5/(6 ( 6$08(/6 -5 et al.

'HIHQGDQWV

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

0(025$1'80 23,1,21

3ODLQWLII %DQQXP ,QF KDV EURXJKW WKLV DFWLRQ DJDLQVW GHIHQGDQWV VHYHQ FXUUHQW RU IRUPHU HPSOR\HHV RI WKH )HGHUDO %XUHDX RI 3ULVRQV ³%23´  DOOHJLQJ WKDW ³>G@HIHQGDQWV KDYH HQJDJHG LQ D SDWWHUQ RI FRQGXFW RYHU WKH SDVW VHYHUDO \HDUV WKDW KDV KDG WKH HIIHFW RI GHEDUULQJ %DQQXP IURP UHFHLYLQJ DQ\ QHZ FRQWUDFWV IURP WKH %23 %DQQXP¶V VROH FXVWRPHU´ $P &RPSO >'NW  @ ˆˆ  ± 3ODLQWLII SUHGLFDWHV LWV FODLPV RQ WKLV DOOHJHG ³GH IDFWR GHEDUPHQW´ DQG LQWHUIHUHQFH ZLWK FRQWUDFWXDO UHODWLRQV DQG LW VHHNV D GHFODUDWRU\ MXGJPHQW LQMXQFWLYH UHOLHI DQG PRQHWDU\ GDPDJHV LQ H[FHVV RI WHQ PLOOLRQ GROODUV Id. ˆˆ ± ± 2Q EHKDOI RI WKH LQGLYLGXDOO\ QDPHG GHIHQGDQWV WKH 8QLWHG 6WDWHV PRYHG WR GLVPLVV WKH DPHQGHG FRPSODLQW SXUVXDQW WR )HGHUDO 5XOHV RI &LYLO 3URFHGXUH  E 

DQG  E   'HI¶V 0RW WR 'LVPLVV $P &RPSO >'NW  @ ³'HI¶V 0RW´  ,W DUJXHV WKDW WKH RQO\ SURSHU GHIHQGDQW LQ WKLV DFWLRQ LV WKH 8QLWHG 6WDWHV WKDW WKH JRYHUQPHQW KDV QRW ZDLYHG LWV VRYHUHLJQ LPPXQLW\ LQ WKLV LQVWDQFH WKDW SODLQWLII KDV IDLOHG WR H[KDXVW LWV DGPLQLVWUDWLYH UHPHGLHV DQG WKDW SODLQWLII KDV IDLOHG WR VWDWH D SODXVLEOH FODLP IRU UHOLHI LQ DQ\ HYHQW 0HP LQ 6XSS RI 'HI¶V 0RW >'NW  @ ³'HI¶V 0HP´

DW ± 7KH GHIHQGDQWV DUH FRUUHFW WKDW WKH RQO\ SURSHU GHIHQGDQW LQ WKLV DFWLRQ LV WKH 8QLWHG 6WDWHV DQG VR WKH JRYHUQPHQW ZLOO EH VXEVWLWXWHG DV WKH VROH GHIHQGDQW SXUVXDQW WR WKH :HVWIDOO $FW  86& †  7KH &RXUW DOVR ILQGV WKDW LW ODFNV VXEMHFW PDWWHU MXULVGLFWLRQ RYHU SODLQWLII¶V WRUW FODLPV EHFDXVH WKH JRYHUQPHQW KDV QRW ZDLYHG LWV VRYHUHLJQ LPPXQLW\ SODLQWLII¶V WRUW FODLPV DUH EDUUHG XQGHU WKH )7&$ DQG SODLQWLII KDV QRW H[KDXVWHG LWV DGPLQLVWUDWLYH UHPHGLHV )XUWKHU WR WKH H[WHQW SODLQWLII DWWHPSWV WR UDLVH D FODLP XQGHU WKH 'XH 3URFHVV &ODXVH RI WKH )LIWK $PHQGPHQW LW KDV IDLOHG WR DOOHJH VXIILFLHQW IDFWV WR VWDWH D FODLP 7KHUHIRUH IRU WKH UHDVRQV VHW IRUWK LQ PRUH GHWDLO EHORZ WKH &RXUW ZLOO JUDQW GHIHQGDQWV¶ PRWLRQ DQG GLVPLVV WKLV FDVH LQ LWV HQWLUHW\ %$&.*5281'

3ODLQWLII LV D .HQWXFN\ FRUSRUDWLRQ ZLWK LWV SULQFLSDO SODFH RI EXVLQHVV LQ 2GHVVD )ORULGD $P &RPSO ˆ  7KH VHYHQ LQGLYLGXDO GHIHQGDQWV DUH &KDUOHV ( 6DPXHOV -U WKH 'LUHFWRU RI WKH %23 &DWKHULQH 6FRWW &KLHI RI WKH %23 1DWLRQDO $FTXLVLWLRQV DQG 6\VWHPV 6HFWLRQ 7LPRWK\ 5 %DUQHWW D %23 5HVLGHQWLDO 5HHQWU\ 0DQDJHU &KHU\O 'HQQLQJV D &RPPXQLW\ &RUUHFWLRQV $GPLQLVWUDWRU IRU %23 /ROD /HH%URZQ D %23 &RQWUDFWLQJ 2IILFHU 2VRULD 7RVWRQ D IRUPHU &RQWUDFW 2YHUVLJKW 6SHFLDOLVW IRU %23 DQG $QGUHD -RKQVRQ D IRUPHU &RPPXQLW\ &RUUHFWLRQV 5HJLRQDO &RRUGLQDWRU IRU %23 Id. ˆˆ ± 3ODLQWLII RSHUDWHV 5HVLGHQWLDO 5HHQWU\ &HQWHUV ³55&V´

IRU IHGHUDO RIIHQGHUV WKURXJKRXW WKH 8QLWHG 6WDWHV SXUVXDQW WR FRQWUDFWV ZLWK WKH %23 $P &RPSO ˆ  $OWKRXJK SODLQWLII DOOHJHV WKDW LW FXUUHQWO\ RSHUDWHV VL[ 55&V LW FODLPV WKDW ³DW RQH SRLQW >LW@ KDG DV PDQ\ DV VHYHQWHHQ GLIIHUHQW 55&V´ DQG WKDW WKLV ZDV ³SULRU WR WKH >G@HIHQGDQWV¶ DWWHPSWV WR HOLPLQDWH %DQQXP IURP %23 FRQWUDFWLQJ.” Id. 3ODLQWLII VWDWHV WKDW LW ZDV XQGHU FRQWUDFW ZLWK %23 IRU HOHYHQ 55&V DV UHFHQWO\ DV  EXW WKDW LWV ELGV IRU QHZ 55& FRQWUDFWV VLQFH  KDYH EHHQ XQVXFFHVVIXO Id. ˆˆ ± 3ODLQWLII FRQFHGHV KRZHYHU WKDW GXULQJ WKH VDPH WLPH SHULRG WKH %23 KDV H[HUFLVHG RSWLRQV DQG H[WHQGHG VRPH RI LWV H[LVWLQJ FRQWUDFWV ZLWK SODLQWLII Id. ˆˆ  



3ODLQWLII¶V DOOHJDWLRQV LQ WKH FRPSODLQW DUH ORQJ DQG GHWDLOHG EXW HVVHQWLDOO\ LW PDLQWDLQV WKDW WKH LQGLYLGXDO GHIHQGDQWV ³JDYH %DQQXP D YHU\ GLIILFXOW WLPH´ LQ WKH FRQWUDFW VROLFLWDWLRQ SURFHVV HQJDJHG LQ D ³VFKHPH    WR SXW %DQQXP RXW RI EXVLQHVV DQG HQVXUH WKDW LW GRHV QRW UHFHLYH DQ\ QHZ JRYHUQPHQW FRQWUDFWV´ ³WUHDW>HG@ %DQQXP GLIIHUHQWO\ WKDQ RWKHU FRQWUDFWRUV´ DQG FRQVSLUHG WR GHSULYH %DQQXP RI FRQWUDFWV ZKHQ RWKHU FRPSHWLWRUV ZHUH LQYROYHG LQ WKH ELGGLQJ SURFHVV $P &RPSO ˆˆ     )RU H[DPSOH SODLQWLII FODLPV WKH %23 ³UDLGHG´ %DQQXP 3ODFH RI 7XSHOR RQH RI SODLQWLII¶V 55&V ³GXULQJ WKH ELGGLQJ HYDOXDWLRQ SHULRG IRU WKH IROORZXS FRQWUDFW´ RQ WKDW FHQWHU DQG DV D UHVXOW ³%DQQXP¶V FXUUHQW FRQWUDFW ILOHV ZHUH FRQILVFDWHG E\ WKH %23´ DQG ³WKH IDFLOLW\ ZDV GDPDJHG´ $P &RPSO ˆˆ  ± )XUWKHU 3ODLQWLII FODLPV WKDW LW ZDV IRUFHG E\ GHIHQGDQWV WR VXVSHQG RU LPSURSHUO\ WHUPLQDWH LWV HPSOR\HHV DW YDULRXV 55&V DQG WKDW WKH VXEVHTXHQW FRQWUDFWV IRU WKRVH 55&V ZHUH DZDUGHG WR SODLQWLII¶V FRPSHWLWRU Id. ˆˆ      H  3ODLQWLII DOVR DVVHUWV WKDW GHIHQGDQWV ³ZRXOG LVVXH XQLODWHUDO PRGLILFDWLRQV >WR LWV FRQWUDFWV@ WKHUHE\ LQFUHDVLQJ WKH DPRXQW RI ZDJHV WKDW %DQQXP ZDV UHTXLUHG WR SD\ LWV HPSOR\HHV´ DQG WKDW WKH %23 ³UHIXVH>G@ WR WLPHO\ UHLPEXUVH %DQQXP´ IRU WKHVH H[SHQVHV Id ˆˆ   3ODLQWLII LQLWLDWHG WKLV DFWLRQ RQ -XO\   &RPSO >'NW  @ DQG LW ILOHG LWV DPHQGHG FRPSODLQW RQ 0DUFK   $P &RPSO ,Q &RXQW , SODLQWLII DOOHJHV WKDW GHIHQGDQWV VXEMHFWHG LW WR D ³GH IDFWR GHEDUPHQW´ E\ ³HQJDJ>LQJ@ LQ D FDPSDLJQ WR VDERWDJH >SODLQWLII¶V@ RSHUDWLRQV KDUP LWV DELOLW\ WR DFW DV D FRQWUDFWRU GHIDPH LWV FRQWUDFW SHUIRUPDQFH KLVWRU\ DQG GDPDJH >LWV@ DELOLW\ WR REWDLQ QHZ EXVLQHVV´ Id. ˆˆ   3ODLQWLII LQVLVWV WKDW ZKDW LW FKDUDFWHUL]HV DV D GHEDUPHQW ³LPSOLFDWH>V@ WKH GXH SURFHVV FODXVH RI WKH WK $PHQGPHQW WR WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ DQG UHTXLUHV DW PLQLPXP SURSHU QRWLFH WR %DQQXP RI WKH FKDUJHV RQ ZKLFK WKH GHEDUPHQW LV EDVHG DQG WKDW %DQQXP EH DIIRUGHG DQ RSSRUWXQLW\ WR UHIXWH WKRVH FKDUJHV´



Id. ˆ  ,Q &RXQW ,, SODLQWLII EULQJV D FODLP IRU ³LQWHUIHUHQFH ZLWK FRQWUDFWXDO UHODWLRQV SURVSHFWLYH FRQWUDFWXDO UHODWLRQV DQG SURVSHFWLYH DGYDQWDJHRXV HFRQRPLF UHODWLRQVKLS´ FODLPLQJ WKDW GHIHQGDQWV ³KDYH XVHG DQG PLVXVHG WKHLU SRVLWLRQV DQG DXWKRULW\ DV HPSOR\HHV RI WKH %23 WR LQWHUIHUH ZLWK DQG GLVUXSW WKH H[LVWLQJ DQG SURVSHFWLYH EXVLQHVV UHODWLRQVKLSV RI 3ODLQWLII %DQQXP ,QF WR WKH SRLQW RI GHVWUR\LQJ WKRVH UHODWLRQVKLSV DQG HOLPLQDWLQJ 3ODLQWLII %DQQXP ,QF DV D FRQWUDFWRU´ Id. ˆ  $FFRUGLQJ WR SODLQWLII GHIHQGDQWV FDUULHG RXW WKLV DWWDFN LQ D QXPEHU RI ZD\V LQFOXGLQJ E\ PDNLQJ IDOVH DQG GHIDPDWRU\ VWDWHPHQWV DERXW %DQQXP SXUVXLQJ XQZDUUDQWHG LQYHVWLJDWLRQV LQWR DOOHJHG ZURQJGRLQJ E\ WKH FRQWUDFWRU DQG IRUFLQJ WKH FRPSDQ\ WR ILUH SDUWLFXODU HPSOR\HHV Id. ˆ  D ± I  2Q $SULO   GHIHQGDQWV PRYHG WR GLVPLVV WKLV FDVH LQ LWV HQWLUHW\ 'HI¶V 0RW DQG SODLQWLII ILOHG LWV RSSRVLWLRQ WR WKDW PRWLRQ RQ -XQH   3O¶V 0HP LQ 2SS WR 'HI¶V 0RW >'NW  @ ³3O¶V 2SS´  'HIHQGDQWV ILOHG D UHSO\ RQ -XO\   5HSO\ LQ 6XSS RI 'HI¶V 0RW >'NW  @ ³'HI¶V 5HSO\´  67$1'$5' 2) 5(9,(:

,Q HYDOXDWLQJ D PRWLRQ WR GLVPLVV XQGHU HLWKHU 5XOH  E 

RU  E   WKH &RXUW PXVW ³WUHDW WKH FRPSODLQW¶V IDFWXDO DOOHJDWLRQV DV WUXH    DQG PXVW JUDQW SODLQWLII µWKH EHQHILW RI DOO LQIHUHQFHV WKDW FDQ EH GHULYHG IURP WKH IDFWV DOOHJHG¶´ Sparrow v. United Air Lines, Inc.  )G   '& &LU 

LQWHUQDO FLWDWLRQV RPLWWHG  TXRWLQJ Schuler v. United States  )G   '& &LU   see also Am. Nat’l Ins. Co. v. FDIC  )G   '& &LU   1HYHUWKHOHVV WKH &RXUW QHHG QRW DFFHSW LQIHUHQFHV GUDZQ E\ WKH SODLQWLII LI WKRVH LQIHUHQFHV DUH XQVXSSRUWHG E\ IDFWV DOOHJHG LQ WKH FRPSODLQW QRU PXVW WKH &RXUW DFFHSW SODLQWLII¶V OHJDO FRQFOXVLRQV Browning v. Clinton  )G   '& &LU  



Free access — add to your briefcase to read the full text and ask questions with AI

Bannum, Inc. v. Samuels, Jr., (D.D.C. 2016).

Bannum, Inc. v. Samuels, Jr. (Bannum, Inc. v. Samuels, Jr.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.