Verizon North Inc v. Strand

Court of Appeals for the Sixth Circuit·Decided November 7, 2002·No. 01-1013·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

9(5,=21 1257+ ,1& ; 3ODLQWLII$SSHOOHH    1R Y  !  s2+1 * 675$1'&KDLUPDQ  s2+1 & 6+($  &RPPLVVLRQHUDQG'$9,' $  69$1'$&RPPLVVLRQHU  'HIHQGDQWV$SSHOODQWV   1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW/DQVLQJ 1Rn5REHUW+ROPHV%HOO&KLHI'LVWULFWsXGJH $UJXHGsXQH 'HFLGHGDQG)LOHG1RYHPEHU %HIRUH%2**61255,6DQG%$7&+(/'(5&LUFXLW sXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8('  'DYLG $ 9RJHV $66,67$17 $77251(< *(1(5$/ 38%/,& 6(59,&( ',9,6,21 /DQVLQJ 0LFKLJDQIRU$SSHOODQW*HUDOG0DVRXGL.,5./$1'

  9HUL]RQ1RUWK,QFY6WUDQGHWDO 1R

(//,6 :DVKLQJWRQ '& IRU $SSHOOHH  %ULDQ s /HVNH :25/'&20,1&:DVKLQJWRQ'&IRU$PLFL&XULDH 21 %5,()  'DYLG $ 9RJHV +HQU\ s %R\QWRQ $66,67$17$77251(<6*(1(5$/38%/,&6(59,&( ',9,6,21 /DQVLQJ 0LFKLJDQ IRU $SSHOODQW  3DWULFN ) 3KLOELQ .,5./$1'  (//,6 :DVKLQJWRQ '& IRU $SSHOOHH%ULDQs/HVNH:25/'&20,1&:DVKLQJWRQ '&'DUU\O0%UDGIRUG6RQD5HZDULs(11(5 %/2&. &KLFDJR ,OOLQRLV 'DYLG / /DZVRQ sHQQLIHU 0 5XELQ 6,'/(<$867,1%52:1 :22':DVKLQJWRQ'& /HODQG 5 5RVLHU &/$5. +,// 2NHPRV 0LFKLJDQ  IRU $PLFL&XULDH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %2**6&LUFXLWsXGJH&RPPLVVLRQHUVsRKQ*6WUDQG sRKQ&6KHDDQG'DYLG$6YDQGDRIWKH0LFKLJDQ3XEOLF 6HUYLFH&RPPLVVLRQ WKHm036&l DSSHDOIURPWKHGLVWULFW FRXUWjVJUDQWRIDGHFODUDWRU\MXGJPHQWLQIDYRURI9HUL]RQ 1RUWK ,QF m9HUL]RQl  LQ 9HUL]RQjV VXLW FKDOOHQJLQJ D )HEUXDU\   RUGHU RI WKH 036& WKH m)HEUXDU\  RUGHUl RU WKH mRUGHUl   9HUL]RQ DQ LQFXPEHQW ORFDO WHOHFRPPXQLFDWLRQVFDUULHULQ0LFKLJDQDOOHJHGWKDWWKHRUGHU FRQIOLFWHG ZLWK DQG ZDV SUHHPSWHG E\ WKH IHGHUDO 7HOHFRPPXQLFDWLRQV$FWRI WKHm)7$lRUWKHm$FWl  3XE/1R6WDW   FRGLILHGLQYDULRXV VHFWLRQV RI  86&  WR WKH H[WHQW WKDW LW UHTXLUHG LQFXPEHQWV WR RIIHU QHWZRUN HOHPHQWV DQG VHUYLFHV WR FRPSHWLWRUV WKURXJK SXEOLVKHG WDULIIV DQG WR FRPELQH XQEXQGOHG QHWZRUN HOHPHQWV IRU FRPSHWLWRUV  7KH GLVWULFW FRXUWDJUHHGDQGJUDQWHGLQMXQFWLYHUHOLHIIURPERWKDVSHFWV RIWKHRUGHU)RUWKHUHDVRQVVHWIRUWKEHORZZHDIILUPWKH GLVWULFW FRXUWjV MXGJPHQW ZLWK UHVSHFW WR WKH WDULII

 7KH FDVH ZDV LQVWLWXWHG E\ *7( 1RUWK ,QF ZKLFK LQ  EHFDPH 9HUL]RQ 1RUWK ,QF 1R 9HUL]RQ1RUWK,QFY6WUDQGHWDO 

UHTXLUHPHQW EXW YDFDWH WKH MXGJPHQW ZLWK UHVSHFW WR WKH EXQGOLQJUHTXLUHPHQW , 7KLVLVWKHVHFRQGWLPHWKDWWKLVFDVHKDVUHDFKHGWKLVFRXUW ,QRXUILUVWGHFLVLRQLVVXHGRQ$SULOZHH[SODLQHG WKHKLVWRU\DQGVXEVWDQFHRIWKHDFWLRQEURXJKWE\9HUL]RQ ZKLFKDWWKHWLPHZDVVWLOO*7(  >,Q'HFHPEHU@WKH036&LQLWLDWHGVWDWHODZ SURFHHGLQJV DJDLQVW *7( DQG RWKHU LQFXPEHQW >/RFDO ([FKDQJH &DUULHUV RU m/(&Vl@ LQ RUGHU WR HVWDEOLVK WHUPV RI LQWHUFRQQHFWLRQ WR 0LFKLJDQ ORFDO H[FKDQJH QHWZRUNVJHQHUDOO\,QFRQQHFWLRQZLWKWKHVHJHQHUDO LQWHUFRQQHFWLRQ SURFHHGLQJV WKH 036& UHTXLUHG *7( DQG $PHULWHFK DV 0LFKLJDQ /(&V WR ILOH ZLWK WKH &RPPLVVLRQm7RWDO6HUYLFH/RQJ5XQ,QFUHPHQWDO&RVWl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jV0RWLRQIRU 8SRQUHFHLYLQJWKHRUGHU*7(VXHGWKH036&LQWKH 6XPPDU\s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jV KROGLQJ ZLWK SXEOLVKWDULIIVRIIHULQJWRVHOOHOHPHQWVRILWVQHWZRUNDW UHVSHFW WR WKLV FODLP DQG UHPDQG WKH FDVH IRU IXUWKHU UDWHVSUHGHWHUPLQHGE\WKH&RPPLVVLRQ FRQVLGHUDWLRQ

*7(1RUWK,QFY6WUDQG)G WK&LU ,,,   m9HUL]RQ,l  )RU WKH IRUHJRLQJ UHDVRQV ZH $)),50 LQ SDUW DQG ,QWKDWILUVWGHFLVLRQWKLVFRXUWUHYLHZHGWKHGLVWULFWFRXUWjV 9$&$7(LQSDUWWKHGLVWULFWFRXUWjVGHFLVLRQ GLVPLVVDORIWKHFDVHIRUODFNRIVXEMHFWPDWWHUMXULVGLFWLRQ 7KHGLVWULFWFRXUWKDGKHOGWKDWLWODFNHGMXULVGLFWLRQLQWKH FDVHEHFDXVH† H  RIWKH$FW 86&† H  JLYHVIHGHUDOFRXUWVMXULVGLFWLRQWRUHYLHZVWDWHFRPPLVVLRQ RUGHUVDSSURYLQJRUUHMHFWLQJILQDOLQWHUFRQQHFWLRQDJUHHPHQWV DQGWKH)HEUXDU\RUGHUZDVQRWVXFKDQRUGHU7KLVFRXUW GHWHUPLQHGWKDWWKHOLPLWDWLRQRQIHGHUDOUHYLHZVHWIRUWKLQ †  H   GLG QRW DSSO\ DQG KHOG WKDW VLQFH WKH DFWLRQ SUHVHQWVDSRWHQWLDOLQVWDQFHRIIHGHUDOSUHHPSWLRQWKHGLVWULFW FRXUWKDGMXULVGLFWLRQWRUHYLHZWKHRUGHUXQGHULWVJHQHUDO IHGHUDOTXHVWLRQMXULVGLFWLRQ 86&† 6HH9HUL]RQ ,)GDW)XUWKHUWKLVFRXUWKHOGWKDW9HUL]RQjV VXLW DJDLQVW WKH LQGLYLGXDO FRPPLVVLRQHUV LQ WKHLU RIILFLDO FDSDFLW\ ZKLFK VHHNV RQO\ SURVSHFWLYH LQMXQFWLYH UHOLHI LV DSSURSULDWHXQGHU([SDUWH

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

Verizon North Inc v. Strand, (6th Cir. 2002).

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