Nguyen v. Cleveland

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 BBBBBBBBBBBBBBBBB

35$0 1*8<(1 ; 3ODLQWLII$SSHOOHH    1R Y  !  &,7< 2) &/(9(/$1'  'HIHQGDQW   3$56216 (1*,1((5,1*  6&,(1&( ,1&   'HIHQGDQW$SSHOODQW  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1Rn$QQ$OGULFK'LVWULFWsXGJH $UJXHG6HSWHPEHU 'HFLGHGDQG)LOHG1RYHPEHU %HIRUH0$57,1&KLHI&LUFXLWsXGJH0225(&LUFXLW sXGJH:,6(0$1'LVWULFWsXGJH

7KH +RQRUDEOH 7KRPDV $ :LVHPDQ sU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ

  1JX\HQY&LW\RI&OHYHODQGHWDO 1R

BBBBBBBBBBBBBBBBB &2816(/ $5*8('$OWRQ/6WHSKHQVsU*$//$*+(56+$53 )8/721  1250$1 &OHYHODQG 2KLR IRU $SSHOODQW $OH[DQGHU06SDWHU63$7(5/$:2)),&(&ROXPEXV 2KLR IRU $SSHOOHH  21 %5,()  $OWRQ / 6WHSKHQV sU 5REHUW (GG\ *$//$*+(5 6+$53 )8/721 1250$1&OHYHODQG2KLRIRU$SSHOODQW$OH[DQGHU0 6SDWHU 63$7(5 /$: 2)),&( &ROXPEXV 2KLR IRU $SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %2<&( ) 0$57,1 s5 &KLHI &LUFXLW sXGJH  7KH $SSHOODQW3DUVRQV(QJLQHHULQJ6FLHQFHDSSHDOVWKHGLVWULFW FRXUWjV RUGHU GHQ\LQJ HQIRUFHPHQW RI DQ DUELWUDWLRQ DJUHHPHQW  7KH GLVWULFW FRXUW FHUWLILHG LWV RUGHU IRU LQWHUORFXWRU\DSSHDOSXUVXDQWWR86&†EGHVSLWH WKHDSSHOODQWjVIDLOXUHWRWDNHDQLPPHGLDWHDSSHDOIURPWKH GHQLDORIDUELWUDWLRQXQGHUWKH)HGHUDO$UELWUDWLRQ$FW2Q DSSHDOWKH$SSHOOHH3UDP1JX\HQUDLVHVVHYHUDOTXHVWLRQV RIIDFWZKLFKLIUHVROYHGIDYRUDEO\IRU1JX\HQZRXOGSODFH WKLV&RXUWLQWKHSRVLWLRQRIUHQGHULQJDQDGYLVRU\RSLQLRQRQ WKHTXHVWLRQFHUWLILHGIRUDSSHDO7KHVHIDFWXDOLVVXHVZHUH UDLVHGDWWKHGLVWULFWFRXUW7KHGLVWULFWFRXUWKRZHYHUHLWKHU RYHUORRNHGWKHVHIDFWXDOLVVXHVRUDVVXPHGWKH\KDGQRPHULW ZLWKRXWSURYLGLQJDQ\UHFRUGGHOLEHUDWLQJWKHVHLVVXHV7KLV &RXUWjVPRWLRQVSDQHOJUDQWHGSHUPLVVLRQWRDSSHDOXQDZDUH RI WKHVH XQUHVROYHG IDFWXDO LVVXHV  7KHUHIRUH IRU WKH IROORZLQJUHDVRQVZH',60,66WKLVLQWHUORFXWRU\DSSHDORQ WKH JURXQGV WKDW WKH GLVWULFW FRXUW LPSURYLGHQWO\ JUDQWHG FHUWLILFDWLRQ ,QWKHVXPPHURI3UDP1JX\HQOHIWKLVMREZLWKWKH &LW\ RI &OHYHODQG DQG EHJDQ HPSOR\PHQW ZLWK 3DUVRQV (QJLQHHULQJ6FLHQFH2QOHDYLQJKLVMRE1JX\HQILOHGDTXL  1JX\HQY&LW\RI&OHYHODQGHWDO 1R 1R 1JX\HQY&LW\RI&OHYHODQGHWDO 

$WWKHWLPH1JX\HQVLJQHGWKHVHIRUPVKHZDVDERXWWR WDP DFWLRQ XQGHU VHFWLRQ D RI WKH )DOVH &ODLPV $FW LQLWLDWHDVXEVWDQWLDOODZVXLWRQEHKDOIRIWKH8QLWHG6WDWHVIRU DJDLQVWKLVIRUPHUHPSOR\HU7KH8QLWHG6WDWHVLQWHUYHQHGLQ IUDXG E\ KLV IRUPHU HPSOR\HU WKH &LW\ RI &OHYHODQG WKHDFWLRQDQGWKHFDVHZDVXQVHDOHGWKXVPDNLQJ1JX\HQjV &HUWDLQO\ 1JX\HQ ZDV DZDUH WKDW 3DUVRQV FRQGXFWHG D QDPH SXEOLF  1JX\HQ FODLPV WKDW DW WKDW WLPH WKH &LW\ RI VXEVWDQWLDODPRXQWRIEXVLQHVVZLWKWKH&LW\RI&OHYHODQGDQG &OHYHODQGEHJDQSUHVVXULQJ3DUVRQVWRUHPRYHKLPIURPDOO WKDWKHZRXOGEHLQYROYHGLQWKHVHSURMHFWV&RQVHTXHQWO\ ZRUNRQFLW\FRQWUDFWV1JX\HQjVZRUNDW3DUVRQVSULPDULO\ 1JX\HQj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1JX\HQjV 1JX\HQjVKFODLPWREHKHDUGLQIHGHUDOFRXUW&LUFXLW DIILGDYLWUDLVHVDUHDVRQDEOHTXHVWLRQDVWRZKHWKHUWKHUHZDV &LW\ 6WRUHV ,QF Y $GDPV PDNHV FOHDU WKDW WKH )HGHUDO YDOLGDVVHQWRQKLVSDUWRUZKHWKHUWKHDUELWUDWLRQDJUHHPHQW $UELWUDWLRQ $FW FDQ FRYHU PDQ\ IRUPV RI HPSOR\PHQW FRYHUHGWKHIDFWXDOVLWXDWLRQRXWOLQHGDERYH,WLVQRWFOHDU FRQWUDFWV   86    VWDWLQJ WKH )HGHUDO ZKHWKHUERLOHUSODWHODQJXDJHVWDWLQJWKDWWKHHPSOR\HHGLVSXWH $UELWUDWLRQ $FW mFRPSHOV MXGLFLDO HQIRUFHPHQW RI D ZLGH UHVROXWLRQ SURJUDP FRYHUV mDOO FODLPV DULVLQJ RXW RI WKH UDQJHRIZULWWHQDUELWUDWLRQDJUHHPHQWVl)XUWKHUPRUHWKHUH HPSOR\PHQWUHODWLRQVKLSlZRXOGDSSO\WRDKFODLP KDV ORQJ EHHQ D mOLEHUDO IHGHUDO SROLF\ IDYRULQJ DUELWUDWLRQ SDUWLFXODUO\RQHLQYROYLQJDSDUW\EHLQJVXHGE\WKH8QLWHG DJUHHPHQWVl0RVHV+&RQH0HPRULDO+RVSLWDOY0HUFXU\ 6WDWHVIRUIUDXGZKRWKHQSUHVVXUHVWKHHPSOR\HUWRILUHWKH &RQVWU &RUS  86     )HGHUDO VWDWXWRU\ NH\ZLWQHVVLQWKHIUDXGDFWLRQ FODLPV DULVLQJ XQGHU DQ HPSOR\PHQW FRQWUDFW FDQ EH DSSURSULDWHO\ UHVROYHG WKURXJK DUELWUDWLRQ DQG KDYH EHHQ ,QILUVWH[DPLQLQJZKHWKHUD6HFWLRQKFODLPFDQEH HQIRUFHGE\FRXUWV,GDWFLWLQJ5RGULJXH]GH4XLMDVY DUELWUDWHG ZLWKRXW UHVROYLQJ WKHVH IDFWXDO LVVXHV RI YDOLG 6KHDUVRQ$PHULFDQ ([SUHVV ,QF  86  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,QRUGHU FHUWLILFDWLRQXQGHU6HFWLRQE WRGHWHUPLQHZKHWKHUDVWDWXWRU\FODLPVKRXOGEHDUELWUDWHG WZRLVVXHVPXVWEHFRQVLGHUHG,GDW)LUVWDFRXUWPXVW H[DPLQHZKHWKHUWKHSDUWLHVDJUHHGWRVXEPLWWKHLUFODLPVWR DUELWUDWLRQ  ,G  6HFRQG D FRXUW PXVW FRQVLGHU ZKHWKHU  1JX\HQY&LW\RI&OHYHODQGHWDO 1R 1R 1JX\HQY&LW\RI&OHYHODQGHWDO 

&RQJUHVV mHYLQFHG DQ LQWHQWLRQ WR SUHFOXGH D ZDLYHU RI H[FOXVLYH PHDQV IRU UHVROYLQJ ZRUNSODFH GLVSXWHV  2Q MXGLFLDOUHPHGLHVIRUWKHVWDWXWRU\ULJKWVl,GFLWLQJ*LOPHU $XJXVW1JX\HQVLJQHGDQHPSOR\PHQWDJUHHPHQW Y ,QWHUVWDWHsRKQVRQ /DQH &RUS  86    ZLWKDQRWKHUDUELWUDWLRQFODXVHVWDWLQJWKDWmDQ\FRQWURYHUV\ 0LWVXELVKL0RWRUV&RUSY6ROHU&KU\VOHU3O\PRXWK,QF UHODWLQJ WR WKH HPSOR\PHQW DJUHHPHQW VKDOO EH VXEMHFW WR 86  DUELWUDWLRQl$OVRRQ$XJXVW1JX\HQVLJQHGDRQHSDJH (PSOR\HH'LVSXWH5HVROXWLRQ)RUPVWDWLQJWKDWKHDJUHHGWR 5HFHQWO\WKH6HFRQG&LUFXLWH[DPLQHGZKHWKHU&RQJUHVV EHmERXQGE\WKHWHUPVRIWKHHPSOR\HHGLVSXWHUHVROXWLRQ LQWHQGHG WR SUHFOXGH DUELWUDWLRQ RI D UHWDOLDWRU\ GLVFKDUJH SURJUDPGXULQJDQGDIWHUKLVHPSOR\PHQWZLWK3DUVRQVIRUDOO FODLP XQGHU WKH ZKLVWOHEORZHU SURYLVLRQV RI WKH )LQDQFLDO FODLPV DULVLQJ RXW RI P\ HPSOR\PHQW UHODWLRQVKLS ZLWK ,QVWLWXWLRQV5HIRUP5HFRYHU\DQG(QIRUFHPHQW$FWRI 3DUVRQVl7KLVIRUPDOVRVWDWHGWKDW1JX\HQUHFHLYHGDFRS\ 2OGUR\GY(OPLUD6DYLQJV%DQN)GG&LU RI WKH (PSOR\HH 'LVSXWH 5HVROXWLRQ +DQGERRN  7KRXJK ,QH[DPLQLQJWKHLVVXHRI&RQJUHVVLRQDOLQWHQWWKH6HFRQG 1JX\HQ DOOHJHV KH QHYHU UHFHLYHG WKH (PSOR\HH 'LVSXWH &LUFXLWVWDWHGWKDWLIVXFKLQWHQWH[LVWVmLWZLOOEHGLVFRYHUDEOH 5HVROXWLRQ +DQGERRN H[SODLQLQJ WKH SURJUDP KH VLJQHG D LQ WKH WH[W RI WKH >VWDWXWH@ LWV OHJLVODWLYH KLVWRU\ RU DQ FKHFNOLVW RQ $XJXVW  GHWDLOLQJ KLV UHFHLSW RI VRPH ILIW\ µLQKHUHQW FRQIOLFWj EHWZHHQ DUELWUDWLRQ DQG WKH >VWDWXWHjV@ ERRNOHWV IRUPV SODQ GHVFULSWLRQV DQG SROLF\ LQIRUPDWLRQ XQGHUO\LQJ SXUSRVHVl  ,G DW  FLWLQJ *LOPHU DW 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jV0HPRUDQGXP&RQWUD3DUVRQVj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mHYLQFHGDQLQWHQWLRQ KRZHYHU 1JX\HQ VWDWHV WKDW KH ZDV WROG D FRS\ ZDV WR SUHFOXGH D ZDLYHU RI MXGLFLDO UHPHGLHV IRU WKH VWDWXWRU\ XQDYDLODEOHZKHQKHVLJQHGWKHIRUP1JX\HQIXUWKHUDOOHJHV ULJKWVl WKH GLVWULFW FRXUW PXVW ILUVW GHWHUPLQH ZKHWKHU WKH WKDWKHWULHGXQVXFFHVVIXOO\WRREWDLQDFRS\RIWKH(PSOR\HH SDUWLHV DJUHHG WR VXEPLW WKLV ZKLVWOHEORZHU FODLP WR 'LVSXWH5HVROXWLRQ+DQGERRN+HGLGQRWUHFHLYHRQHXQWLO DUELWUDWLRQ*UHHQ7UHH86DW WKHILOLQJRI3DUVRQVjVPRWLRQWRGLVPLVV,QVKRUWKHDUJXHV KHQHYHUDJUHHGWRWKHWHUPVRXWOLQHGLQWKH+DQGERRN2Q 7KHUHFRUGLQGLFDWHV1JX\HQVLJQHGDQRIIHURIHPSOR\PHQW UHYLHZRIWKHSOHDGLQJVEHIRUHWKHGLVWULFWFRXUW3DUVRQVGLG IURP3DUVRQVRQsXO\ZLWKDJHQHUDOFODXVHVWDWLQJ QRW FKDOOHQJH WKHVH VSHFLILF DOOHJDWLRQV  5DWKHU 3DUVRQV WKDW3DUVRQVjVHPSOR\HHGLVSXWHUHVROXWLRQSURJUDPZDVWKH PHUHO\QRWHGWKHODQJXDJHRIWKHGRFXPHQWV1JX\HQVLJQHG