PaineWebber, Inc. v. Cohen

Court of Appeals for the Sixth Circuit·Decided December 27, 2001·No. 01-3228·Published

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

3$,1(:(%%(5 ,1& ; 3ODLQWLII$SSHOODQW    1R Y  !  $/)5(' 0 &2+(1([HFXWRU  RIWKH(VWDWHRI6DPXHO  *LQVEXUJ  'HIHQGDQW$SSHOOHH   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL 1Rn+HUPDQs:HEHU'LVWULFWsXGJH $UJXHG2FWREHU 'HFLGHGDQG)LOHG'HFHPEHU %HIRUH%2**6*,/0$1DQG%5,*+7&LUFXLWsXGJHV

7KH +RQRUDEOH 0\URQ + %ULJKW 6HQLRU &LUFXLW sXGJH IRU WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU WKH (LJKWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ

  3DLQH:HEEHU,QFY&RKHQ 1R 1R 3DLQH:HEEHU,QFY&RKHQ 

BBBBBBBBBBBBBBBBB UXOHRQWKLVLVVXHDQGVRLWLVQRWSURSHUO\EHIRUHWKLVFRXUWRQ DSSHDO7RPHLWVHWVDEDGSUHFHGHQWIRUDQDSSHOODWHFRXUW &2816(/ H[FHSWLQXQXVXDOFLUFXPVWDQFHVQRWSUHVHQWKHUHWRGHFLGHDQ LVVXHQRWUXOHGRQE\WKHWULDOFRXUW,WKLQNLWRQO\SURSHUWR $5*8('  sHIIUH\ s sRQHV s21(6 '$< 5($9,6 UHPDQGWKDWLVVXHWRWKHDEOHGLVWULFWMXGJH7KHTXHVWLRQRI 32*8( &ROXPEXV 2KLR IRU $SSHOODQW  6WDQOH\ 0 DEVWHQWLRQKHUHLVIDUIURPFOHDU7KHGLVWULFWFRXUWPD\ZHOO &KHVOH\:$,7(6&+1(,'(5%$

DJUHHPHQW DQG UHVROYLQJ DOO WKH PDWWHUV UHODWHG WR WKLV ,%$&.*5281' FRPPRQFDXVHRIDFWLRQ $ )DFWXDOEDFNJURXQG 7KHPDMRULW\H[SUHVVHVFRQFHUQWKDWDIILUPLQJWKHGLVWULFW FRXUWZRXOGVHWDGDQJHURXVSUHFHGHQWZKHUHE\GHIHQGDQWV *LQVEXUJ HQWHUHG LQWR D m&OLHQWjV $JUHHPHQWl ZLWK FRXOGGHIHDWDUELWUDWLRQE\MRLQLQJQRQGLYHUVHSDUWLHV7KLV 3DLQH:HEEHURQ$XJXVW7KLVDJUHHPHQWFRQWDLQV SRVLWLRQHYLQFHVDQXQQHFHVVDU\GLVWUXVWRIERWKVWDWHFRXUWV D GHWDLOHG DUELWUDWLRQ FODXVH SURYLGLQJ mWKDW DQ\ DQG DOO DQGIHGHUDOGLVWULFWFRXUWV,QUHJDUGWRVWDWHFRXUWVQHLWKHU FRQWURYHUVLHVFRQFHUQLQJDQ\DFFRXQWWUDQVDFWLRQGLVSXWH SDUW\SUHVHQWVWKHDUJXPHQWWKDWVWDWHFRXUWVLQJHQHUDORUWKDW RU WKH FRQVWUXFWLRQ SHUIRUPDQFH RU EUHDFK RI WKLV RU DQ\ WKH2KLRFRXUWVLQSDUWLFXODUVKLUNWKHLUGXW\WRHQIRUFHODZIXO RWKHU DJUHHPHQW    VKDOO EH GHWHUPLQHG E\ DUELWUDWLRQl DUELWUDWLRQDJUHHPHQWVXQGHUWKH)$$ 6HYHUDO GD\V ODWHU *LQVEXUJ DQG 3DLQH:HEEHU H[HFXWHG D m0DVWHU $FFRXQW $JUHHPHQWl WKDW FRQWDLQV DQ DUELWUDWLRQ )XUWKHUPRUHWKHPDMRULW\ VSROLF\LPSOLFDWLRQLVQRWWHQDEOH FODXVH QHDUO\ LGHQWLFDO WR WKH RQH IRXQG LQ WKH &OLHQWjV EHFDXVHGHFLVLRQVWRGLVPLVVEDVHGRQQRQMRLQGHURISDUWLHV $JUHHPHQW  2QH VLJQLILFDQW GLIIHUHQFH EHWZHHQ WKH WZR DUHWREHPDGHSUDJPDWLFDOO\DQGEDVHGRQWKHSDUWLFXODUL]HG GRFXPHQWVKRZHYHULVWKDWWKH0DVWHU$FFRXQW$JUHHPHQWjV FRQWH[WRIHDFKFDVH6HHHJ2ZHQV,OOLQRLV,QFY0HDGH DUELWUDWLRQFODXVHQRWRQO\UHIHUHQFHVGLVDJUHHPHQWVEHWZHHQ )G WK&LU  H[SODLQLQJWKDWGLVPLVVDO 3DLQH:HEEHUDQG*LQVEXUJEXWDOVRVSHFLILHVWKDWLWJRYHUQV EDVHG RQ QRQMRLQGHU PXVW EH PDGH SUDJPDWLFDOO\ LQ WKH GLVSXWHVEHWZHHQ*LQVEXUJDQGm>3DLQH:HEEHUjV@HPSOR\HHV FRQWH[W RI WKH VXEVWDQFH RI HDFK FDVH UDWKHU WKDQ E\ RUDJHQWVl%RWKDJUHHPHQWVLQFOXGHSURYLVLRQVWKDWPDNH SURFHGXUDOIRUPXOD  TXRWLQJ3URYLGHQW7UDGHVPHQV%DQN WKHLU WHUPV ELQGLQJ RQ *LQVEXUJjV KHLUV H[HFXWRUV 7UXVW &R Y 3DWWHUVRQ  86   Q   DGPLQLVWUDWRUVVXFFHVVRUVDQGDVVLJQV )HGHUDO GLVWULFW FRXUWV DUH IXOO\ FDSDEOH RI GLVWLQJXLVKLQJ EHWZHHQ D VLWXDWLRQ ZKHUH QRQGLYHUVH SDUWLHV DUH MRLQHG  $IWHU*LQVEXUJGLHGRQ2FWREHU&RKHQDQ2KLR VROHO\WRGHIHDWIHGHUDOMXULVGLFWLRQDQGWKHVLWXDWLRQZKHUHD UHVLGHQW ZDV DSSRLQWHG WKH H[HFXWRU RI *LQVEXUJjV HVWDWH QRQGLYHUVHSDUW\ZKRLVFRYHUHGE\DQDUELWUDWLRQDJUHHPHQW $FWLQJ LQ KLV FDSDFLW\ DV H[HFXWRU &RKHQ ILOHG D ODZVXLW PXVW EH MRLQHG XQGHU 5XOH  DV D QHFHVVDU\ DQG DJDLQVW3DLQH:HEEHUDQG:LOKHOPLQWKH+DPLOWRQ&RXQW\ LQGLVSHQVDEOHSDUW\ &RXUWRI&RPPRQ3OHDVRQsXO\DVVHUWLQJFODLPVRI FRQYHUVLRQ DQG IUDXGXOHQW FRQFHDOPHQW WKDW UHODWH WR )LQDOO\,VWURQJO\GLVDJUHHZLWKWKHPDMRULW\ VUHDFKLQJRXW *LQVEXUJjVEURNHUDJHDFFRXQWZLWK3DLQH:HEEHU WRGHFLGHWKHLVVXHRIDEVWHQWLRQ7KHGLVWULFWFRXUWGLGQRW % 3URFHGXUDOEDFNJURXQG

 3DLQH:HEEHUILOHGDSHWLWLRQLQWKH8QLWHG6WDWHV'LVWULFW 7KH PDMRULW\ RSLQLRQ GRHV QRW DFFRXQW IRU WKH DPRXQW RI SURJUHVV &RXUW IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR WZR GD\V ODWHU PDGH LQ WKH +DPLOWRQ &RXQW\ &RPPRQ 3OHDV &RXUW 7KH VWDWH FRXUW LVVXHG D WHPSRUDU\ UHVWUDLQLQJ RUGHU WR SUHVHUYH HYLGHQFH )XUWKHUPRUH VHHNLQJ WR FRPSHO DUELWUDWLRQ HQIRUFH WKH DUELWUDWLRQ DV WKH IHGHUDO GLVWULFW FRXUW H[SODLQHG WKH VWDWH FRXUW KHOG D FDVH DJUHHPHQWVDQGVWD\&RKHQjVVWDWHFRXUWDFWLRQ,WILOHGDQ PDQDJHPHQW FRQIHUHQFH RQ 2FWREHU   ZKHUH WKH FRXUW VHW D WULDO DPHQGHGSHWLWLRQVHHNLQJWKHVDPHUHOLHIRQ$XJXVW GDWH RI sXQH   DQG HVWDEOLVKHG GHDGOLQHV IRU WKH FRPSOHWLRQ RI :LOKHOPZDVQRWQDPHGDVDSDUW\LQHLWKHU3DLQH:HEEHUjV GLVFRYHU\ DQG ILOLQJ SUHWULDO PRWLRQV DQG WULDO EULHIV $SDUW IURP WKH RULJLQDO RU DPHQGHG SHWLWLRQ  7KH VROH EDVLV IRU IHGHUDO SDUWLHV DJUHHPHQW WR QRW SURFHHG ZLWK WKH VWDWH FRXUW DFWLRQ ZKLOH WKH IHGHUDO DFWLRQ ZDV SHQGLQJ WKHUH LV HYHU\ LQGLFDWLRQ WKDW WKH VWDWH FRXUW MXULVGLFWLRQ RYHU 3DLQH:HEEHUjV SHWLWLRQ ZDV GLYHUVLW\ RI ZRXOG KDYH DGGUHVVHG WKLV PDWWHU LQ D WLPHO\ IDVKLRQ FLWL]HQVKLSXQGHU86&†  3DLQH:HEEHU,QFY&RKHQ 1R 1R 3DLQH:HEEHU,QFY&RKHQ 

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

PaineWebber, Inc. v. Cohen, (6th Cir. 2001).

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