InRe:Shelton,Dennis v.

Opinion

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

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBBB

,QUH'(11< 52< 6+(/721 ; s5  0RYDQW   1R  !  1 7UDQVIHUUHGIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV 1Rn'DYLG:0F.HDJXH'LVWULFWsXGJH 6XEPLWWHGsXQH 'HFLGHGDQG)LOHGsXO\ %HIRUH.(,7+DQG'$8*+75(<&LUFXLWsXGJHV 0$5%/(<'LVWULFWsXGJH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 3(5 &85,$0  7KLV PDWWHU LV EHIRUH XV RQ PRWLRQ RI 'HQQ\5R\6KHOWRQsUIRUDQRUGHUSXUVXDQWWR86& †E  $DXWKRUL]LQJWKHGLVWULFWFRXUWWRFRQVLGHUD VHFRQGRUVXFFHVVLYHPRWLRQWRYDFDWHKLVIHGHUDOVHQWHQFH

7KH +RQRUDEOH $OJHUQRQ / 0DUEOH\ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  ,QUH6KHOWRQ 1R

)RU WKH UHDVRQV VHW RXW EHORZ ZH KROG WKDW 6KHOWRQ LV QRW UHTXLUHGWRREWDLQWKLVFRXUWjVDXWKRUL]DWLRQWRILOHKLV† PRWLRQDQGZHWKHUHIRUHGLVPLVVWKHLQVWDQWPRWLRQDVPRRW 2Q2FWREHUWKHGLVWULFWFRXUWVHQWHQFHG6KHOWRQ WRFRQVHFXWLYHSULVRQWHUPVRIPRQWKV DQGPRQWKV IROORZLQJ6KHOWRQjVSOHDRIJXLOW\WRYLRODWLRQVRI86& †DQG86&†F$OWKRXJK6KHOWRQGLGQRWILOH DGLUHFWDSSHDOLQsXO\KHILOHGZLWKWKHGLVWULFWFRXUWD PRWLRQFDSWLRQHG mPRWLRQWRGLVPLVVIRUODFNRIWHUULWRULDO MXULVGLFWLRQl7KHGLVWULFWFRXUWDSSDUHQWO\ZLWKRXWJLYLQJ SULRU QRWLFH WR 6KHOWRQ FRQVWUXHG WKH PRWLRQ DV RQH ILOHG SXUVXDQWWR86&†DQGGLVPLVVHGLW ,Q 2FWREHU  6KHOWRQ ILOHG D VHFRQG PRWLRQ LQ WKH GLVWULFWFRXUWWKLVWLPHDUJXLQJWKDWKLVFRXQVHOKDGUHQGHUHG LQHIIHFWLYHDVVLVWDQFHE\IDLOLQJWRFKDOOHQJHWKHYDOLGLW\RID VHDUFK WKDW OHG WR WKH GLVFRYHU\ RI D ILUHDUP E\ ODZ HQIRUFHPHQW RIILFHUV  8QOLNH KLV SULRU PRWLRQ 6KHOWRQ ODEHOHGWKHODWWHUPRWLRQDVILOHGXQGHU†DQGKHIXUWKHU DUJXHGWKDWKHKDGLQWHQGHGKLVSULRUPRWLRQWREHFRQVWUXHG DVILOHGSXUVXDQWWR5XOHE RU5XOHRIWKH)HGHUDO 5XOHVRI&ULPLQDO3URFHGXUHQRW†7KHGLVWULFWFRXUW UHMHFWHG6KHOWRQjVDUJXPHQWDQGKHOGWKHODWWHUPRWLRQWREH D mVHFRQG RU VXFFHVVLYHl PRWLRQ EURXJKW XQGHU  86& †:HQRZFRQVLGHU6KHOWRQjVUHTXHVWXQGHU† E WKDWZHDXWKRUL]HWKHGLVWULFWFRXUWWRFRQVLGHUDVHFRQG †PRWLRQ 0DQ\SURVHSULVRQHUVILOHLQDUWIXOO\GUDIWHGSRVWFRQYLFWLRQ PRWLRQVZLWKRXWVSHFLI\LQJWKHOHJDOEDVLVIRUWKHUHTXHVWHG UHOLHI'LVWULFWFRXUWVLQDQHIIRUWWRDVVLVWSURVHOLWLJDQWV XQDZDUH RI WKH DSSOLFDEOH VWDWXWRU\ IUDPHZRUN RIWHQ UH FKDUDFWHUL]HVXFKILOLQJVDV†PRWLRQV$V WKH7KLUG &LUFXLW KDV QRWHG m>W@KLV SUDFWLFH GHYHORSHG ERWK IRU HIILFLHQF\jV VDNH DQG RXW RI D VHQVH RI IDLUQHVV WR SUR VH SHWLWLRQHUV ZKRVH FODLPV DUH FRQVWUXHG TXLWH OLEHUDOO\l 8QLWHG6WDWHVY0LOOHU)GG&LU$Q XQLQWHQGHGE\SURGXFWRIWKLVSUDFWLFHKRZHYHULVWKDWLWPD\ HIIHFWLYHO\GHSULYHDQXQLQIRUPHGSURVHOLWLJDQWRIWKHIXWXUH 1R ,QUH6KHOWRQ 

RSSRUWXQLW\ WR ILOH D PRWLRQ WR YDFDWH KLV VHQWHQFH XQGHU †7KH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FW $('3$ FRQVWUDLQV D SULVRQHUjV RSSRUWXQLW\ WR ILOH VXFFHVVLYH PRWLRQV XQGHU  86& †  WR QDUURZO\ OLPLWHGFLUFXPVWDQFHV6HH86&†SURYLGLQJWKDW D mVHFRQG RU VXFFHVVLYH PRWLRQl PXVW LQYROYH lQHZO\ GLVFRYHUHGHYLGHQFHlRUmDQHZUXOHRIFRQVWLWXWLRQDOODZ WKDWZDVSUHYLRXVO\XQDYDLODEOHl+RZHYHUDVWKH6HFRQG &LUFXLW KDV REVHUYHG UHFKDUDFWHUL]DWLRQ RI D SUR VH SRVW FRQYLFWLRQILOLQJDVD†PRWLRQLQYROYHVDQLQKHUHQWULVN XQGHU$('3$ ,IDGLVWULFWFRXUWUHFHLYLQJDPRWLRQXQGHUVRPHRWKHU SURYLVLRQ RI ODZ HOHFWV WR WUHDW LW DV D PRWLRQ XQGHU †DQGWKHQGHQLHVLWWKDWPD\FDXVHWKHPRYDQWjV VXEVHTXHQWILOLQJRIDPRWLRQXQGHU†WREHEDUUHG DV D µVHFRQGj †   7KXV D FRQYHUVLRQ LQLWLDOO\ MXVWLILHG EHFDXVH LW KDUPOHVVO\ DVVLVWHG WKH SULVRQHU PRYDQWLQGHDOLQJZLWKOHJDOWHFKQLFDOLWLHVPD\UHVXOWLQ DGLVDVWURXVGHSULYDWLRQRIDIXWXUHRSSRUWXQLW\WRKDYHD ZHOOMXVWLILHGJULHYDQFHDGMXGLFDWHG7KHFRXUWjVDFWRI FRQYHUVLRQZKLFKZHDSSURYHGXQGHUSUH$('3$ODZ EHFDXVH LW ZDV XVHIXO DQG KDUPOHVV PLJKW XQGHU $('3$jVQHZODZEHFRPHH[WUDRUGLQDULO\KDUPIXOWRD SULVRQHUjV ULJKWV  $ SULVRQHU FRQYLFWHG SXUVXDQW WR XQFRQVWLWXWLRQDOSURFHHGLQJVPLJKWORVHWKHULJKWWRKDYH DVLQJOHSHWLWLRQIRUKDEHDVFRUSXVDGMXGLFDWHGVROHO\E\ UHDVRQ RI D GLVWULFW FRXUWjV KDYLQJ LQFRUUHFWO\ UHFKDUDFWHUL]HGVRPHSULRUPRWLRQDVRQHEURXJKWXQGHU † $GDPVY8QLWHG6WDWHV)GG&LU 7KH 6HFRQG 7KLUG )RXUWK 6HYHQWK 1LQWK DQG 7HQWK &LUFXLWVKDYHKHOGWKDWLQYLHZRI$('3$jVVWULFWEDUGLVWULFW FRXUWV VKRXOG QRW DXWRPDWLFDOO\ UHFKDUDFWHUL]H D SUR VH SULVRQHUjV SRVWFRQYLFWLRQ PRWLRQ DV D †  PRWLRQ ,QVWHDGWKRVHFRXUWVKROGWKDWWKHGLVWULFWFRXUWVKRXOGLQIRUP WKHPRYDQWWKDWKLVPRWLRQPD\EHGHHPHGD†PRWLRQ DQGJLYHKLPDQRSSRUWXQLW\WRZLWKGUDZLW6HH8QLWHG6WDWHV  ,QUH6KHOWRQ 1R 1R ,QUH6KHOWRQ 

Y(PPDQXHO)GWK&LU+HQGHUVRQ 6HH+HQGHUVRQ)GDWUHIXVLQJWRGHHPSURVH Y8QLWHG6WDWHV)GWK&LU8QLWHG SULVRQHUjV SRVWFRQYLFWLRQ PRWLRQ D †  PRWLRQ ZKHUH 6WDWHV Y 6HHVLQJ  )G   WK &LU  m>Q@RZDUQLQJZDVJLYHQl2IFRXUVHm>L@IWKHPRYDQWILOHV 8QLWHG6WDWHVY.HOO\)GWK&LU DPRWLRQSURSHUO\GHQRPLQDWHGDVD†PRWLRQWKHFRXUW 8QLWHG6WDWHVY0LOOHU)GG&LU PD\ UXOH RQ LWV PHULWV ZLWKRXW WDNLQJ WKH SURSK\ODFWLF $GDPV)GDW6HHDOVR&DVWURY8QLWHG6WDWHV PHDVXUHVWRGD\SUHVFULEHGUHJDUGLQJPLVODEHOHGRUXQODEHOHG )GWK&LUm>:@HVXJJHVWWKDWLQWKH SRVWFRQYLFWLRQPRWLRQVl(PPDQXHO)GDWQ IXWXUH ZKHQ D GLVWULFW FRXUW XQLODWHUDOO\ UHFKDUDFWHUL]HV D SULVRQHUjVSOHDGLQJDVD†SHWLWLRQWKHMXGJHVKRXOGDOVR +HUH LW DSSHDUV IURP WKH UHFRUG WKDW WKH GLVWULFW FRXUW ZDUQ WKH SHWLWLRQHU RI WKH FRQVHTXHQFHV RI WKLV EHIRUHUHFKDUDFWHUL]LQJ6KHOWRQjVILUVWSRVWFRQYLFWLRQILOLQJ UHFKDUDFWHUL]DWLRQWKDWWKLVUHFKDUDFWHUL]HGSHWLWLRQPD\EH DVD†PRWLRQGLGQRWSURYLGH6KHOWRQZLWKDSSURSULDWH KLV ILUVW DQG RQO\ FKDQFH WR VHHN UHOLHI XQGHU † l QRWLFHDQGDQRSSRUWXQLW\IRUZLWKGUDZDO$FFRUGLQJO\WKDW 5DLQHUL Y 8QLWHG 6WDWHV  )G   VW &LU  PRWLRQFDQQRWEHFRXQWHGDJDLQVWKLPIRUSXUSRVHVRIWKHEDU GHFOLQLQJWRDGRSWSURFHGXUHVVHWIRUWKLQ$GDPVEXWKROGLQJ RQ D VXFFHVVLYH †  PRWLRQ :H WKHUHIRUH '(1< mWKDWZKHQDGLVWULFWFRXUWDFWLQJVXDVSRQWHFRQYHUWVDSRVW 6KHOWRQjV LQVWDQW UHTXHVW IRU UHOLHI XQGHU  86& FRQYLFWLRQPRWLRQILOHGXQGHUVRPHRWKHUVWDWXWHRUUXOHLQWR †E  $DVPRRW DVHFWLRQSHWLWLRQZLWKRXWQRWLFHDQGDQRSSRUWXQLW\WR EH KHDUG RU LQ WKH DOWHUQDWLYH WKH SOHDGHUjV LQIRUPHG FRQVHQWWKHUHFKDUDFWHUL]HGPRWLRQRUGLQDULO\ZLOOQRWFRXQW DV D µILUVWj KDEHDV SHWLWLRQ VXIILFLHQW WR WULJJHU $('3$jV JDWHNHHSLQJUHTXLUHPHQWVl :HDJUHHZLWKWKHDSSURDFKRIWKH6HFRQG&LUFXLWDQGKROG WKDW >'@LVWULFW FRXUWV VKRXOG QRW UHFKDUDFWHUL]H D PRWLRQ SXUSRUWHGO\ PDGH XQGHU VRPH RWKHU UXOH DV D PRWLRQ PDGH XQGHU †  XQOHVV D WKH PRYDQW ZLWK NQRZOHGJHRIWKHSRWHQWLDODGYHUVHFRQVHTXHQFHVRIVXFK UHFKDUDFWHUL]DWLRQ DJUHHV WR KDYH WKH PRWLRQ VR UHFKDUDFWHUL]HG RU E WKH FRXUW ILQGV WKDW QRWZLWKVWDQGLQJ LWV GHVLJQDWLRQ WKH PRWLRQ VKRXOG EH FRQVLGHUHGDVPDGHXQGHU†EHFDXVHRIWKHQDWXUH RI WKH UHOLHI VRXJKW DQG RIIHUV WKH PRYDQW WKH RSSRUWXQLW\WRZLWKGUDZWKHPRWLRQUDWKHUWKDQKDYHLWVR UHFKDUDFWHUL]HG $GDPV)GDW8QOHVVVXFKDZDUQLQJLVSURYLGHG DUHFKDUDFWHUL]HG†PRWLRQPXVWQRWEHFRXQWHGDJDLQVW WKHSULVRQHUIRUSXUSRVHVRIWKHEDURQVXFFHVVLYHPRWLRQV