Costanza v. CIR

Court of Appeals for the Sixth Circuit·Decided February 19, 2003·No. 01-2207·Published

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  (VWDWHRI&RVWDQ]DY&RPPjU 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

&RPPLVVLRQHU SURIIHUHG QR HYLGHQFH DW WULDO WR UHEXW WKLV )LOH 1DPH DS

SUHVXPSWLRQ$WWKLVVWDJHRIWKHSURFHHGLQJVWKHSHWLWLRQHUV FRQWHQGZHVKRXOGEHDEOHWRDVVHVVWKHGLIIHUHQFHEHWZHHQ WKH YDOXH RI WKH SURSHUWLHV ZKLFK ZDV WKH VXEMHFW RI 81,7('67$7(6&28572)$33($/6 WHVWLPRQ\DWWULDODQGWKHSUHVXPHGIDLUPDUNHWYDOXHRIWKH )257+(6,;7+&,5&8,7 6&,1  7KH GLIIHUHQFH ZRXOG UHSUHVHQW WKH DPRXQW RI WKH BBBBBBBBBBBBBBBBB EDUJDLQVDOHLIDQ\SXUVXDQWWR† %XWWKHSHWLWLRQHUVGLGQRWDGYDQFHWKLVDUJXPHQWXQWLOWKHLU UHSO\EULHIDQGWKHUHIRUHWKH&RPPLVVLRQHUZDVQRWDIIRUGHG (67$7( 2) '8,/,2 ; DQRSSRUWXQLW\WRUHVSRQG0RUHRYHULWLVXQFOHDUIURPWKH &267$1=$GHFHDVHG  UHFRUGZKHWKHUWKH&RPPLVVLRQHUSURIIHUHGHYLGHQFHDWWKH 0,&+$(/ &267$1=$  WULDOWRUHEXWWKHSUHVXPSWLRQRIWKHIDLUPDUNHWYDOXHRIWKH  1R 6&,16HH(VWDWHRI*LEUDXVNDVY&RPPjU7& ([HFXWRU     VWDWLQJ WKDW WKH IDLUPDUNHWYDOXH SUHVXPSWLRQ 3HWLWLRQHUV$SSHOODQWV !  FDQEHUHIXWHGE\HYLGHQFHWKDWWKHQRWHLVZRUWKOHVVWKDQLWV  SUHVXPHGYDOXH :HZLOOWKHUHIRUHUHPDQGWKHDFWLRQWRWKH Y  WD[ FRXUW IRU WKH SXUSRVH RI UHVROYLQJ WKH &RPPLVVLRQHUjV  DOWHUQDWLYHDUJXPHQWWKDWWKH6&,1FRQVWLWXWHGDEDUJDLQVDOH  WKDWVXEMHFWVWKHHVWDWHWRJLIWWD[DWLRQXQGHU† &200,66,21(5 2) ,17(51$/ 5(9(18(   ,,,&21&/86,21 5HVSRQGHQW$SSHOOHH  )RUDOORIWKHUHDVRQVVHWIRUWKDERYHZH5(9(56(WKH 1 MXGJPHQWRIWKHWD[FRXUWDQG5(0$1'WKHFDVHIRUIXUWKHU 2Q$SSHDOIURPWKH8QLWHG6WDWHV7D[&RXUW SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ 1Rn'DYLG/DUR7D[&RXUWsXGJH 6XEPLWWHG)HEUXDU\ 'HFLGHGDQG)LOHG)HEUXDU\ %HIRUH*,/0$1DQG*,%%216&LUFXLWsXGJHV 32/67(5'LVWULFWsXGJH

7KH +RQRUDEOH 'DQ $DURQ 3ROVWHU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  (VWDWHRI&RVWDQ]DY&RPPjU 1R 1R (VWDWHRI&RVWDQ]DY&RPPjU 

BBBBBBBBBBBBBBBBB DWWULDOWKDW'XLOLRZDVH[SHFWHGWROLYHVRPHZKHUHEHWZHHQ DQG\HDUVIURPWKHWLPHWKDWKHVLJQHGWKH6&,1+LV &2816(/ SUHPDWXUH GHDWK GXH WR FRPSOLFDWLRQV IURP VXUJHU\ ZDV FOHDUO\QRWDQWLFLSDWHG,QDGGLWLRQWKHIDFWWKDWWKH6&,1ZDV 21%5,()&KDUOHV/0F.HOYLH5LWD$%DLUG'2/' IXOO\VHFXUHGE\DPRUWJDJHRQWKHSURSHUWLHVIXUWKHUUHIXWHV 63$7+0F.(/9,( 'H/8&$3&7UR\0LFKLJDQIRU DQ\LQIHUHQFHWKDWWKHVDOHZDVQRWERQDILGH $SSHOODQWV  7HUHVD 7 0LOWRQ 5LFKDUG )DUEHU 81,7(' 67$7(6 '(3$570(17 2) s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s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jV DOWHUQDWLYH WKHQRWHZDVIXOO\SDLG DUJXPHQWWKDWWKH6&,1FRQVWLWXWHGDEDUJDLQVDOHWKDWZLOO LQFUHDVHWKHHVWDWHjVDGMXVWHGWD[DEOHJLIWV3XUVXDQWWR 'XLOLRGLHGDSSUR[LPDWHO\ILYHPRQWKVDIWHUWKHLVVXDQFHRI 86&†m>Z@KHUHSURSHUW\LVWUDQVIHUUHGIRUOHVVWKDQ WKH6&,1E\ZKLFKSRLQW0LFKDHOKDGSDLGRIIRQO\DVPDOO DQ DGHTXDWH DQG IXOO FRQVLGHUDWLRQ LQ PRQH\ RU PRQH\jV SRUWLRQ RI WKH QRWH  0LFKDHO DV WKH H[HFXWRU RI 'XLOLRjV ZRUWKWKHQWKHDPRXQWE\ZKLFKWKHYDOXHRIWKHSURSHUW\ HVWDWHVXEVHTXHQWO\ILOHGDIHGHUDOHVWDWHWD[UHWXUQGHFODULQJ H[FHHGHGWKH YDOXHRIWKHFRQVLGHUDWLRQVKDOOEHGHHPHGD WKDWWKHHVWDWHKDGQROLDELOLW\IRUHVWDWHWD[7KH,56LVVXHG JLIWDQGVKDOOEHLQFOXGHGLQFRPSXWLQJWKHDPRXQWRIJLIWV DQRWLFHRIGHILFLHQF\EDVHGRQLWVGHWHUPLQDWLRQWKDWWKHVDOH PDGH GXULQJ WKH FDOHQGDU \HDUl  7KH &RPPLVVLRQHU WKXV RIWKHSURSHUWLHVZDVQRWERQDILGH$IWHUDWULDOWKHWD[FRXUW XUJHVXVWRUHPDQGWKHDFWLRQWRWKHWD[FRXUWWRGHWHUPLQHWKH DOVRFRQFOXGHGWKDWWKHVDOHZDVQRWDERQDILGHWUDQVDFWLRQ WUXHYDOXHRIWKH6&,1ZKLFKKHFRQWHQGVLVFRQVLGHUDEO\ 0LFKDHODSSHDOVWKLVUXOLQJ)RUWKHUHDVRQVVHWIRUWKEHORZ OHVVWKDQWKHYDOXHRIWKHSURSHUWLHVWUDQVIHUUHG ZH5(9(56(WKHMXGJPHQWRIWKHWD[FRXUWDQG5(0$1' WKHFDVHIRUIXUWKHUSURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ 2QWKHRWKHUKDQGWKHSHWLWLRQHUVPDLQWDLQWKDWWKHUHLVQR QHHGWRUHPDQGWKHDFWLRQ7KH\SRLQWRXWWKDWIRUHVWDWHWD[ SXUSRVHVm>W@KHIDLUPDUNHWYDOXHRIQRWHVLVSUHVXPHGWR EHWKHDPRXQWRIXQSDLGSULQFLSDOSOXVLQWHUHVWDFFUXHGWRWKH GDWH RI GHDWKl  &)5 †  DQG WKDW WKH  (VWDWHRI&RVWDQ]DY&RPPjU 1R 1R (VWDWHRI&RVWDQ]DY&RPPjU 

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

Costanza v. CIR, (6th Cir. 2003).

Costanza v. CIR (Costanza v. CIR) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.