Whalen v. Rutherford et al, No. 3:2012cv00032 - Document 70 (W.D. Va. 2013)
Court Description: MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 6/21/2013. (lab)
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CL ERK:OFFI U, DI GOURT CE S. :X ATMOAMOKE, ' X VA ' * F q. g( I TH E UN I N TED STATES DI STRI COU RT CT FO R TH E W ESTERN D I I OF VI I I STR CT RG N A CH A RLOTTESVI LLE D I SI VI ON 2 12 1 23 BJ A . Dl KUq D & L RK J ACQUELI M .W HALEN, NE Pl ntf, ai if Ci lAci n No. 1 vi to 3:2CV00032 M EM O M N DU M O PINIO N JA M ES LA RRY RUTHERFO RD , By: on.G l n E. 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Sheme ln e i s am n s unt Vigni t s pery' pr l t Rut r or a Fl i r s de ,i 1 he f d, or da e i nt n 977,a t y bec m e r m a i a l i ve i 1 3. nd he a o ntc ly nvol d n 98 Whalen v. Rutherford et al Alho h Rut ror pr e ma raget W hae i 1 a W haln a e edhi pr a, he t ug he f d opos d ri o ln n 986 nd e cc pt s opos lt Doc. 70 c oupl ne m a e How e r t y m a nt i a i i a e r l tons p f ove t e t ye r . e ver ni d. ve , he i a ned n ntm t e a i hi or r w n y a s I 1 n 985,W ha en and Rut r or e e ed i o a bus ne sr a i ns p t tt y ca l d W & R l he f d nt r nt i s el to hi ha he le Pat rhi (he( rnes p' . Thepur eoft Pa t s pwast S onduc t busnes of rnes p t k t rhi ' pa ) pos he rnerhi ok c t he i s ma ngahoref r a ho s bre ngopeai ' t Prpet ( rne s pAgee nta nagi s am nd re e di rton'on he o ry. Pa t rhi r me t The Pa t r hi A gr e e pr de t tW ha e w o d be t i a ng pa t r' a t rne s p e m nt ovi d ha l n ul he s nagi m rne , nd hat ' Dockets.Justia.com s woul i ec vefom t pa t rhi as a y c he d d ei r he rne s p alr omme ur t wih he tm e e f ta e rie r ns a e t r i , for nd xpe ts c rbutdt t busne s' (d a 2. ThePa t s pAgre ntfrhe pr de t tt onti e o he i s . L=.t ) ' rnerhi e me ' t r ovi d ha he u s lr woul beS tr ne fom tmet tmebyW hae a Rut ror ' (d. aay d i emi d r i o i de ln nd hef d. I ) ' l t 1 n he 990s W hal n a Rut r or be n di c s ng t po s biiy t Rut r or , e nd he f d ga s us i he s i lt hat he f d w oul m ove t V igi a and lve w ih W ha e The a s di c s d buidi a l r rhom e on t d o r ni i t l n. y l o s us e l ng a ge he Pr ry. Rut f r w asoft opi on t t e s i hous w a t s a l a he di no ope t her o d he ni hat he xitng e s oo m l, nd d t wa t k t r unls i wasbi r' ( herodDe a 58. Si eRut rodwasgoi t nt o k hee e s t be gge . Rut fr p. t ) nc he fr ' ng o fna et c tu tonoft ne hous,Whalngrntdhi aj nttna yi e eti t i nc he onsr ci he w e e a e m oi e nc ntr s n he Pr pe t The de d ofgi tw a sgne by W ha e on A ug t 1 20 o ry. e f si d ln us 2, 03. The c t uc i oft new hous w a tna e by a m o t ge l n i t a oun of ons r ton he e s i nc d r ga oa n he m t $1470, 00. Thel an wass c e by ade d oftus on t Pr ry,whih wa sg d by , 000. o e ur d e r t he ope t c s ine Ru he f d on N ove be 1 2007,a by W ha e o N ove be 24,2007, By s g ng t de t r or m r 9, nd ln n m r i ni he ed oft s , he f d r pr e e t the w oul oc upy a us t Pr t ashi prnc pa nl t Rut r or e es nt d ha d c nd e he opery s i i l r i nc f a l s aye r ( edofTnltat!6. Ruhef das rpr s nt onanotrz d esde e or t eat a . De s ) t ror lo e e e ed aie borowe c riiai t the'ntnde t occ s dpr ryas( s prmayr i nc wihi r r e tfc ton ha t e d o upy ai ope t hil i r esde e t n i 60da ofl ncl i orc ei ofac tuci pema ntl n. ( ComplEx. ) ys oa osng omplton onsr ton r ne oa ' Am. ' . F. Pr o t e utng t de oft us ,Ru he f d de i ed t ti w asne s a y t d a t i r o xec i he ed r t t r or c d ha t ce s r o r f an a e me k r i t us oft Prpe t ' ( heror De a 68. Rut ror diece gre nti ngng) he e he o ry. Rut f d p. t ) hef d r td gove ' lo e hi te or m hi em pl s oyee,Jody Bakes, t handl t sm a l rf hi . OnNove r20, mbe 2007,Rut ror sg a a ee ntr r ngt Pr ry(heûFis hef d ined n gr me egadi he ope t t û rt Ag e me )whihwa drfedbya al neyi Fl i TheFis Agre ntpr de r e nf', c s at n tor n orda. rt e me ovi d, a ngohe t ngs t tRut ror woul d rs i ef ()t pa nt dueont mo t r hi ,ha hef d d b e ponsbl or i he yme s be he Durn hi d posto Rute f r i n i e Ba e a hsC ig s e iin, h ro d de tt d k s s i I ' ( t ro dDe a 68) i CFO. Ruhef r p. t . ' M orgage (i i urnc ont Pr pet gndl(i)txe d o t Pr ry. ( rtAgre nt t ; i) ns a e he o ry; a ii a s ue n he ope t ' Fis e me ' a 2. TheFis Ag e me wa pr e e t W halni Vigi aonNovembe 27, t ) rt r e nt s esntd o e n r ni r 2007, nds a he sgne is jctt t deltonoft eg hpaa a whihr rdhe t t i anpr ry i d t ube o he ei he iht rgrph, c equie r o i nti opet ma andc s lyi urnceont Pr ryf isf lrplc mentcos. (d. a uat ns a he opet or t ul e a e t' I ) ' OnN o mbe 30, ve r 2007, he f dexe ut d as c ag ee ntr ga di t Pr ry Rut ror c e e ond r me e r ng he ope t (helse ond Agr me ' . Unlket Fis Agre ntt Se t lc ee nt' ) i he rt e me ,he condAg e me di no rquie r e nt d t e r Rut r or t m a t pa e sdue o t m or g ort pr r y t x pay e s l t a i he f d o ke he ym nt n he t age he ope t a m nt . ns e d t pr d t tW hal n woul m a t m o t ge, ns a e, nd t x pa ent , nd t Ru he f d ovi ed ha e d ke he r ga i ur nc a a ym s a hat t r or w oul be r ponsi e f r m bur ng her d es bl or ei si . W ha e sgned t l s pa oft Sec A gr em e o D e m be 3,2007. A c or ng ln i he a t ge he ond e nt n ce r c di t W haen,J Ba sc le he a 4: 5 i t a tr n a advie he t tC hec o l ody ke al d r t 1 n he fe noo nd s d r ha i hange 'ha t s' d be nma t t agre nt ( halnDe a 67) Ba se e de o he e me . W e p. t . ke mphasz dt tWhae nee dt ie ha ln de o s gn ' he l tpa ' be or t l ala t ne sofi e c os a t ti W hal n idi tdo i,t i k as ge ' f e he oc tor y' t c l ed, nd ha f t e k dn' t he not wa goi t e r a t ywo dha t sa to a i ' (d. W hae a ve a t e s ng o xpie nd he ul ve o tr ver gan. l ) ' ln ni d t he a t y' of i tve m i e bef e t of i e cl e She s gne t l tpage oft Sec tonw s fce i nut s or he f c os d. i d he as he ond A g e m e , hi w ast onl pa t ts w a s n. Bas d o Ba s r pr e a i n, r e nt w ch he y ge ha he s how e n ke ' e es nt t o W hae a s e t tt onl c ngewa t deeto oft pa a a t ts hadm a ke ou i ln s um d ha he y ha s he l i n he r gr ph ha he r d tn t Fis A gr e e . The a t lc nge t t Se nd A gr e e , hi h r quied he t m ake he r t e m nt c ua ha s o he co e m nt w c e r ro t m o t ge,i tr nc a t x pa e s wer no di c os t he . he r ga ns ta e, nd a ym nt , e t s l ed o r Unbe know ns t W ha en a t tm et tm e s s gne t de d oft s ,o he l n to l t he i he i he i d he e nz t t r oa d um e s a t Se oc nt , nd he cond A g e m e t Rut r or ha bee m a e t anot rw om a f ne ry r e n , he f d d n ni d o he n or a l ei m ont ght hs. Rut or m ar i D ani on M ar 31,2007. W hal di notl n aboutt herf d red el ch en d ear he m arrage unt l2009. i i Not t t ndi t tr oft Se ondAgr eme ,Rut ror c i d t ma t wihsa ng he e ms he c e nt he f d ontnue o ke he m orgagepaym ent on t Pr t f om D ecem berof2007 unt lM ar of2010. I M ar of t s he opery r i ch n ch 20l Rut r o d sopped m a ng t m orga pa e sa a 1o he pa e st W hal n. The 0, he f r t ki he t ge ym nt nd l t r ym nt o e Pr pe t i now i f e l ur o ry s n or c os e. ProceduralH i t s orv W ha en tl d t i t nta ton aga ns Ru he f d a D a elon J ne 29, 2012. l her l i e he ns a c i i t t r or nd ni u 2 n a e m nded c pl i ,s a s r st f l i c a m sunde V igi a l w :f a e i e e om a nt he s e t he olow ng l i r r ni a r udul nt nduc m nt byRut ror ( hef d CountI; e c ofqua ico rc b Rut ro d( unt1) bra ofc r tby ) br a h s- nta t y he fr Co 14 e ch ontac Rut ror ( t11;andt to i efrncewihc r tbyDa el( hef d Coun 1) orius ntree t ontac ni CountI . V) Rut ro d a Da elpr vi l move t dim ist a he f r nd ni e ousy d o s s he mende c d ompli ,purua tt ant s n o Rul l b)6)oft Fe r lRulsofCi lPr e e. OnDe e r1 201 t c t nid e 2( ( he de a e vi oc dur c mbe 3, 2,he our de e t de e nt m oto . he f nda s' i ns Folo i t c pl ton ofdi c r Ru he f d a D a elm oved f r s m a y l w ng he om e i s ove y, t r or nd ni o um r j me . Thec t dahe i ont moi onJme3, udg nt our hel arng he tons l 2013. Themoinsha bee to ve n f l bref a a e rpe f r vi w . uly i ed nd r i or e e Standard ofR evi w e An a r o s mmayj g n i a p o rae'ftemo a t h wsta te ei n wa d f u r ud me t s p r p it ç h v n s o h t h r s o i g n iedip t a t a y maeilfc a dt emo a ti e tte t j d me t samatro lw. e un s u e s o n tra a t n h v n s n i d o u g n a l te f a ' ' F d R. v. 5 () l d tr nn wh t e t g a t mo infrs mma yj d me tt ec u t e . Ci P. 6 a. n eemi ig eh r o r n a to o u r u g n ,h o r m us vi w t r c d i t lgh m os f vor bl t t no m ova . Ande s 47 U . a 255. t e he e or n he i t t a a e o he nnt r on, 7 S. t Towihsa as t tnd ummayj r udgme moi t no mova mus pr es t en e de efom nt ton,he n- nt t oduc ufki t vi nc r 2 Prort flng t i t nta i , W hal tl s tagai tRut f d and ot r i t Cic t i o ii he ns a cton en ied ui ns heror he s n he r ui Cour ofN elon Count Tha acton wasnon- uied on J y 3,201 t s y. t i s t ul 2. 4 whc ar a o b e u yc u drtr av r it nhe fv r 1 a 2 8 S n l o yo ih e s na l j r o l eu n e dc i r a o . d. t 4 . k cus r r co s c ai algai donots fc nordoesaS r s i il ofe de e'i s pe ultve le tons ufie, mee cntla vi nc n uppor ofghe t t non- nts c s ' Thomps v.Poo cElc. mova 'j a e. ' on tma e Powe Co.31 F. 645,649(t Ci. r , 2 3d 4h r 2002) ( i Philpsv. quotng li CSX Trns .l ,1 F. 285,287( hCi.1 ) l asesi a a p. nc. 90 3d 4t r 999). n s sng s mma yj u r udgme moton,ac ti e ildt co i ronl t e de et twoul be nt i our s ntte o nsde y he vi nc ha d a i sbl a t i l Se M a yl nd H i hw a Contac or A s ' I v. a y a 933 F. 1 dm s i e t ra . e r a g ys r t s s ns nc. M r l nd, 2d 246, 1 ( hCi.1 )( i t td as ye de e,whih i i dmisbl a ti ,c nnotbe 251 4t r 991 notng ha k ra vi nc he c s na si e t ral a c n iee o amo inf rs mmayj d me t'. o sd r d n to o u r u g n' ) Di cuss on s i 1 . R ut ord' M oton f Sum m ary Judzm ent herf s i or Rut r or i na ed i Count 1 I , nd IIoft a ende co pl nt I Count1 W ha e he f d s m n s , 1 a I he m d m ai . n , ln cl m s t tRut r or f audul nty i ce he t s g t Sec A g e m ent l Cou 1 , ai ha he f d r e l ndu d r o i n he ond r e . n nt 1 W hal n a s rs a cl i f br a h ofquas - nt a t r a e t Rut r or sf l e t m a e s et a m or e c ico r c , el t d o he f d' aiur o ke m orgagepa ent . l Count11 W hal n as e t a c a m f rbr c ofc r c ,ba e on t ym s n 1, e s rs l i o ea h onta t s d Ru he f d' f l et m a mont ypa nt f s r c sr er d by W haen. Rut f dhas t ror s aiur o ke hl yme s or e vi e end e l heror mo e f rs mmayj d me to al h e c u t, ihwil ea d e s di t l . v d o u r u g n n 1tr e o n s whc l b d rs e n u' n A. C ountI l Cou 1 W haln cli st tRut ror fa e l i uc d he t sgnt Se n nt , e am ha he f d r udul nty nd e r o i he cond A g ee en ,whi h s fe r s r m t c hi t d e pons biiy f t m o t gepa e st W hal n. W ha e co e i lt or he r ga ym nt o e l n nt nds t tRut r or i e i ly c nc l d t i m a e i lcha ,a t ts w o d notha s gne ha he f d nt ntona l o ea e h s t r a nge nd ha he ul ve i d t Second A gr enti t change had been di osed. he eem f he scl 1. A pplcabl Law i e U nde V igi a l w , hi h t pa te a e i c r lng, r ud i t i e e ofa r r ni a w c he r i s gr e s ont oli f a n he nduc m nt c r c i a gr ont a t s ound f ran a ton f rda a s G e ge Robbe e htSe oodsl v. ail nd Br . o c i o m ge , or rc af nc. M ta os Co.255S. 2d682,683( 1 ) a aprnci lma behedla ef t fau ofhi age . , E. Va. 979, nd i pa y l ibl or he r d s nt Se Spe v. ifn,372 S. 2d595,599( 1 ) Nai del .Co. Patron,33l e nce Grfi E. Va. 988 ; tonwi ns v. te s S. 2d490,493( .1 . Toprvalonacai f fa en i E. Va 985) e i l m or rudul t nduce t apli ifmus men, antf t pr t f l ngee t bycla a c nci e de $()afler e e ai ( ofa ove he olowi lmens e r nd onvi ng vi nce:i1 as eprs ntton, 2) maeilf t( ma i e i lya knowi y,( wihi e t milad,( r la ebyt tra ac, 3) de ntntonal nd ngl 4) t ntnt o se 5) einc he pa t mild,a ( rs tngda et t pa t mil ' Evauai Resa c Cop.v. ry se nd 6) e uli mag o he ry sed. ' l ton e r h Alqui 439S. 2d387,390( 1 . e n, E. Va. 994) V igi al w ka s r c ze f a by om i son,s e i esca l d t o e m e .' Ba r ni a û l o e ogni s r ud s i om tm le c nc al nt '' nk ofMonte lv.Sine Bank,1 F. 81 827(t Ci.1 . TheSu e Co tofVigi a ra g t 93 3d 8, 4h r 999) prme ur r ni ha hel t ti onc l e , he he a om pls by w or o co uc ,m a be t eq va e tofa s d ha ' ea m nt w t r cc c i hed d r nd t y he ui l n f l e r e e a i bec us c a s epr s nt ton, a e once l e al a i vol s d i r t nondi c os e des g d t a m nt w ys n ve elbe a e s l ur i ne o pr ve a herf om l r ng t t ut ' Spe ,372 S. 2d a 599. H o e r k he f iur t e nt not r ea ni he r h. ' nce E. t w ve , û a l e o t di c os i o m a i i ge r ly nota tona e a f a ul ntconc al e i t a e e of s e s l e nf r ton s ne a l c i bl s r ud e e m nt n he bs nc om du y t di cl e. Ba ofM o r a ,1 F. a 8 t o s os ' ' nk nt e l 93 3d t 29. To pr e on a f a cl i ba e upon oc ed r ud a m s d c ea m e , he Supr m e Cour ofV igi a hasç e r d e t ra aleg t o o evi nc ofa onc l nt t e t r ni û qui e ihe n l a i n r de e r kno i a a delbe a e dec son nott di c os a m a e i f c . N or i v. ic l 495 S. 2d w ng nd i rt ii o sl e t ral a t' ' rs M t hel, E. 8 81 ( 1 ) s as La r v. 09, 2 Va. 998; ee lo mbet Downt Gaa .I .553S. 2d71 71 18( . own r/e nc, E. 4, 7- Va 2001 . ) A t o- a s a ut oflm ia i a i t c a m s f da a r uli f om faud. V a. w ye r t t e i t ton pples o l i or m ges es tng r r CodeAnn.j8. - A) Suc camsa cuewhenkhefa ...sds rdorbyt 01243( . h li c r ' rud i icovee t he 6 e rieofduedii nc ra ona y s dha bee dic r ' Va. xecs lge e e s bl houl ve n s oveed. ' CodeAnn.j 8. - 1 . ûf elnguaget t e cs ofduedii nc r as bl s dha be n 01249( ) û' a -h by he xerie lge e e ona y houl ve e dico rd, asus di ...j8. - me (j ame ur ofpr nce a tviy, asi t s vee ' e n 01249, ans such as e ude , ci t or sduiy, asi pr ry t beexpe t d fom,a or narl e cie by,ar as bl a pr ntma s ope l o ce r nd di iy xer s d e ona e nd ude n unde t pa tc a c r um sa e .... STB M a ke i Co . Zola r ,393 S. 2d 394, r he r i ul r i c t nc s ' ' r tng p v. f gha i E. 397( 990)(ntr lcttono te . dW hehe s hduedii nc hasbee e r s dmus be 1 i ena iai mitd) t t r uc lge e n xecie t as e t ne by a e m i ton oft f c sa c r um s a e uni t e c c s ' l c r ai d n xa na i he a t nd ic t nc s que o a h a e. d. ' 2. A nal s ysi A ppl ng t f e ng pr nc pl , he c tc l st tg ui i s ofm a e i f c yi he or goi i i es t our onc ude ha en ne s ues t ral a t p e ld t e tyo s mmayj d me to W h ln scam t a Ruh ro dfa d ln l id c d rcu e he nr f u r u g n n ae ' li h t te f r r u ue ty n u e he t s gn t Se ond A gr e e . A ss tf t a ve,Ru he f d i ta e t dr f i oft r o i he c e m nt e or h bo t r or nii t d he a tng he a ee e a r c uie hi e pl e, ody Ba s t ha e t m a t f hi . Conss e w ih gr m nt nd e r t d s m oye J ke , o ndl he ter or m i t nt t W ha e su r t ndi t tRut r o d w oul f na et c t uc i oft ne ho e, he Fis l n' nde s a ng ha he f r d i nc he ons r ton he w m t rt A gr e e , hi waspr s nt d t W hal n i N ove be of2007,pr d t tRu he f d e m nt w ch ee e o e n m r ovi ed ha t r or w oul be r ponsbl f t m o t ge a t x pa en s W hal n s gne t Fis A g e m e t d es i e or he r ga nd a ym t . e i d he r t r e n s jc t t deei ofpaa a eg ,whihrquie he t pa f mai e nc a ube t o he lton rgrph iht c e rd r o y or ntna e nd i ur nc snc s di notha t c h fow t s ts y t e oblga i ns Les t n a wee ns a e, i e he d ve he as l o a i f hos i to . s ha k l t r a 4: 5 i t a t r a e , t 1 n he f e noon,J Ba sadvied W ha e t tt he c ngesw e e m ade ' t t ody ke s l n ha k ha t r ,' ha W hal n ne d t s gn d he l s pa ' bef r t a t ne s ofi e c os d,a t ti W ha e e ede o i t a t ge ' o e he tor y' fc l e nd ha f t ln G dn'doi,henoewa goi t e r a t ywoul ha t saroverag n. ( halnDe t t tt t s ng o xpie nd he di d ve o t t ai ' W e p. ' a 67 (mpha i a d) W hae a veda t ator sofi fvemi e befr t ofie t )e ss dde . ln ni t he t ney' fce i nuts o e he fc c os d, a pr s nt d w ih t l s pa oft Sec Agr m e ,a s gne t pa l e w s e e e t he a t ge he ond ee nt nd i d hat ge. U nbe knowns t W hal n,t Sec A g ee e r q r d he t m a t m o t ge, ns a to e he ond r m nt e uie r o ke he r ga i ur nce, a t x pa e s a t ,i pos eve gr a e fna a ob i tonst n t Fi s A g ee e . nd a ym nt nd, hus m ed n e t r i nci l lga i ha he r t r m nt Vi w i t r or i t lg m os f vor bl t W ha e t cour c l s t a e ng he ec d n he i ht t a a e o l n, he t onc ude hat r s bl ur co dtndt tRuhef dha ad yt dicos t mae ilc nge c t ne i eaona ej y ul i ha t ror d ut o s l e he tra ha s onai d n t Sec Agr m e ,a t thi Cnondicl ur w ast e va e ofa f a e a s r i of he ond ee nt nd ha s û s os e he qui l nt r udul nt s e ton a m a era f c ,kno i y m a wih i e t m i l a ' Spenc 372 S. 2d a 599. A st t il a t w ngl de t nt nt o s e d. ' e, E. t he U nied St t Cour ofA ppe s f rt Foul h Cic to e v i Ba ofM ontea ,s h d y t a es t al o he ' r ui bs r ed n nk t r l uc ut m ay a i e di t f c i m a e i la t one co e lng ha s i know l dge a k w st rs if he a t s t r a nd he nc a i s uperor e nd no he ot i a tng upo t as um pton t tt f c doe note s , orC fone pa t t sac i her s c i n he s i ha he a t s xi t' k ' i ry ake tons whi h di r t ot rpa t fom m a ng pr nti tg tons' Ba ofM ont e l 1 F, a c ve t he he r y r ki ude nves i a i . ' nk r a , 93 3d t Hee ara o a l j r c u dtn t a t c a g r q rngW h lnt ma temo ta e r , e s n by u y o l ' d h the h n e e uii i ae o ke h rg g pa ent wasm a e i l t tRut r or kne t tW ha e expe t d hi t m ake t m orga ym s t r a ; ha he f d w ha ln ce m o he t ge pa e t a t ts w a a tng o t as um p i n t tt Sec A g ee e w a i ntc lt ym n s nd ha he s c i n he s t o ha he ond r m nt s de i a o t Fis A g ee nti t tr pe t a t tW haln' m itke bei t tt onl cha t t he rt r me n ha es c ; nd ha e s sa n lef ha he y nge o he Se ond A gr e e w a t o t ts r ue t d w a i e by t r pr e a i nsm ade by c e m nt s he ne ha he eq s e s nduc d he e es nt t o Ruh ro d' a n . A r ao a ej r c udl e s tndt a t ed cso n t ods ls te te fr s ge t e s n bl u y o l i wie i h t h e iin o t ico e h k k ng' a k i r t ' de 3 s m a e i c ngest t Se t ral ha o he cond A gr e e w a i now i ' nd i lbe a e.' N oni ,495 S.E. e m nt s i 2d a 812. t l mo n f rs mmayj dg n o ti cam, t ef r ma smu ho tefc t a n vig o u r u me t n h s li Ru h ro d ke c f h a t h t W ha e di notr ques t s e t e i e Se ln d e t o e he ntr cond A gr e e bef e s g ng t l tpa e m nt or i ni he as ge. W hie a l 3 The cour not t tt r d cont nsevi t es ha he ecor ai dence ofot mir es a i and om isi by her s epr ent tons s ons Rut f d. Ass heror umm a zed above Rut f d f l t dicl t thehad mar i Da el and, ri , heror aied o s ose ha red ni , f l ng t mar i sgned l docum e sce iyi t thei ended t maket Pr rt hi prm a y olowi he rage, i oan nt rtf ng ha nt o he ope y s i r r i e. W hiet courtagr wih Rut f d t tt e a tonalm ir pr e atonsand om isi esdenc l he ees t heror ha hes ddii s e es nt i s ons ar nota i e ctonabl on t rown,t cour i oft opi on t ts e denc i pr i ofRut r or s e hei he t s he ni ha uch vi e s obatve he f d' i ent nt . pa t sf l e t r a a doc e ge r l doe notr le t pa t o he oblg tons t tr e ry' aiur o e d um nt ne aly s e i ve he r y f r i a i , ha ul l nota y ... r gheopposngpat i uc t ( ry)no t r di. Spe ,372 c does ppl whee t i ryq nd ed he pa t t o ea t' ' nce S. 2da 599(ii Ca trv.Catr 2 S. 2d21 221( 1 2). I lg oft E. t ctng re re , 91 E. 8, Va. 98 ) n iht he r pr ent tonsm ade by Ru he f d' a nt t c r m s a esunde whi h W hal n w a a gua y e es a i t r or s ge , he icu t nc r c e s r bl pr s ur d t s gn t Sec A g ee e ,a t d r oftus t W hal n afor d Ru he f d e s e o i he ond r m nt nd he eg ee r t hat e f de t r or a ars toft i de ade -ongrltons p,t co ti c nce t taras bl j ycoul s e ul her c sl eai hi he ur s onvi d ha e ona e ur d fnd t the f l et r ques a r a t e tr Sec Agr eme wase us bl Se 1 i ha r aiur o e t nd e d he n ie ond e nt xc a e. e d. ( di t tt cic tnc e us dag a orsfiur t r dade dofgitwheekhecek' hol ng ha he rumsa es xc e r nt ' al e o ea e f, r t lr s t of i w a a fce s boutt cl e f t da 't g a ort us e t gr nt esa t i a nt a s w a he os or he y,' he r nt r t d he a e nd he r ge , nd he s a s edbyt age t tt de dwastlkeghelwa e i''. sur he ntha he e ci s t ntd t') To t e en Rut f r a gue t tW hal n' f a e i e e cl i i ba r by he xt t her o d r s ha e s r udul nt nduc m nt a m s r ed t s a ut oflm ia i ns t cou tc l st tge ne i s s o m a e i lf c pr l he t t e i t t o , he r onc ude ha nui s ue f t r a a t ec ude s mmayj d me to t i g o n a wel l i u ds u e ta W h lnddn to ti ac p o u r u g n n h s r u d s l. t s n ip td h t ae i o ban o y f t Se he cond A g ee e untls fl t pr vi l w s taga ns Rut r or a o he si 2011 r m nt i he ied he e ous a ui i t he f d nd t r n a t , ha s di no dico rt tt m a e i lc ngesha bee co e e f om he untlt t nds hus t t he d t s ve ha he t ra ha d n nc al d r r i ha tm e. W hie Rut r or f t W ha e f no r que tng a c oft Se i l he f d auls l n or t e s i opy he cond Agr m e a tr ee nt fe s sg iandague t ts fie t a twihduedii nce t lis qofwhe afa he ined t r s ha he ald o c t lge ,he ksueg n rud s d r s na y ha be n di c ve e a w ih m os i s s ofr a ona ene s a e t ca l be t houl ea o bl ve e s o r d, s t t s ue e s bl s , r ypi ly s lf t t j y. Pe yl ni LieI .Co. Bumb e 665F.Supp.11 1 ( D. et o he ur ' nns va a f ns v. ' r v, 90, 202 E. Va. 1 . Ont src d,t c t ncudest taj ymus deemi whe W hae t o t 987) hi e or he our co l ha ur t tr ne n ln,hr ugh he e r s ofdue dii en s d ha dic xe ci e lg ce, houl ve s over d t m a era cha s t t e Se ond A gr e ent e he t i l nge o h c em . Ac o d n l,h c u t ld n Ruh ro d' moin frs mma yj d me twi r s e tt t s c r i gy te o r wil e y t ef r s to o u r u g n t e p c o hi h cl m . ai 4 B. C ount11 I CountI,W hal n s e t r c rf br a h ofq s - ontac ,ba e on Rut r or s n I e e ks o e ove or e c ua ic r t s d he f d' f i r t ma emo ta ep y ns I mo igfrs mmayj d me t nt i cam fre utbe al e o k rg g a me t. n vn o u r u g n o h s li o q ia l u r l f Ruh ro dag e t a tecam fisa amatro lw, ic t es be tmatro tecam ei , t e fr r u s h th li al s te f a sn e h u j c te fh li e i cover by an expr s cont act nam el t Second A gr ent Thi pri pl i s ed es r , y he eem . s nci e s w e les a ihed unde V igi a l w . Se e. ,W RH M org. l v. A . A s tc . 21 F. d l- t bls r r ni a es g. t . nc. S. S. sl s , 4 3 528 534( hCi. )(i heeac r tgovenst rlto hi oft pa te ,t e tbl , 4t r 2000 i r ontac W r he eains p he ris he quia e rme yo rsiuin go n e i q a i o ta t ru j s e zc me td e n tle' . Be a e e d f e t to r u d d n u s c nr c o nu t n ih n o s o i.) c us t ' W haln haspr ded no a hort t s es t ta e e i e sst t ge r lnleba rng e ovi ut iy o ugg t ha ny xc pton xit o he ne a l ri rc v r fru j s e rc me twh na e p e sc n rc c vest es be tmatra is e te e o e y o n u t n ih n e n x rs o ta t o r h u j c te t su ,h c t ilgr ntRu he f d' m oton w ih r s c t t s c a m . our w l a t r or s i t e pe t o hi l i 5 4 l hi i talbref Rut r or alo a guedt tW hal scl m off a enti n s nii i , he f d s r ha en' ai r udul nducementi bared s r by t econom i l sr e. Fort r onssat i t cour' pr ousmemor he c os ul he eas t ed n he ts evi andum opi on and or , ni der t cour r nsconvi d t t sar he t emai nce hat hi gumenti wihoutm ert See W hal v.Rut f d, o. s t i. en her or N 3:2c 00 2 2 U. Dit LEXI 1 6 4, t*1 - 0 ( . Va. b.1 201 ) s eas S. lS e 1 v0 32, 01 S. s. S 7 46 a 7 2 W D. Fe , 3 * e lo Coa als , Co n. Xc l e gy& Re .No. :2-v- 26 201 U. Dit LEXI 1 69, t*1 - 3( . Va. r v. oa En r s, 7 1 c 00 5, 3 S. s. S 34 a 2 1 W D. Fe l 20l )( mp szngt t t t Fo t Cic ta teSu r meCo t fVigi aha er c gnie b. , 3 e ha ii ha boh he urh r ui nd h p e ur o r ni v e o z d atlrudi t i uc me t e c p int t e on cl sr e'. tfa n he nd e n ' x e to o he c omi os ul' ) 5The eour r e ai hat he ee nduced by faud. r t ecogniest W haln cl m st t Second Agr m entwasi z hat However underV igi a lw ,a faudul l pr ed contacti notaut a i l voi butC dabl a , r ni a r enty ocur r s om tcaly d, ç voi e t t eopi o t ep ryij r db t fa d. An ronv. a ma 3 Va. r 22 30( .1 ) l h ton f h a t n u e y he r u ' des ' Sh r , 8 Ci. , Va 995 . f W hal i uns en s ucces f i herpr ofCount1 i f l t tt Se s ul n oof , t olows ha he cond Agr e r ai t onl eem nt em ns he y wrte sa ementesabls ng t r atons p oft pari wih r pec t t Pr t t f ecl i itn tt t ihi he el i hi he tes t es t o he opery, hus or osng anycl m f br ai or each ofquas- r . Cons nty,hepl ntf eihe wilbes icontact eque l t ai if t r l ucces f i pr lng i sul n evaii n heracton at1 ornota al. i aw t l 10 C. CountI11 Cou 1 Ioft a e nt 1 he m nded c pl nta s rs a c a m f br c ofc r c by R u he f d. om ai s e t l i or ea h ont a t t r or Spec f c ly,W ha en cl i st s a Rut r or d gr ed t Ru he f d w oul ber pons bl ii a l l a m hat he nd he f d i e hat t r or a d es i e f pr vi ng ... ppr ma ey $20, pe mont t W &R Pa t r hi f rs r c sr nde e t or o di a oxi t l 000 r ho rne s p o e vi e e r d o R u he f d by W hal n t oug W & R Pa t r hi ' a t tRut r or br a d t sag e m e , t r or e hr h rne s p,' nd ha he f d e che hi r e nt wh nh so p dma n p y nst W &R Pa te s i i Ma c o 2 0 ( Co . ! e e t p e kig a me t o rn rhp n rh f 01 . Am. mpl! :5- ) 86. I a a tonf bra h ofc rctunde Vigi alw,apl ntf mus de n n ci or e c onta r r ni a ai if t monsr t ( )a tae 1 n e oc a ec nrc, 2 avolto o b e c o ta c nrc, n ( )c ns q e ta ij r o nf re bl o ta t( ) i ai n r r a h f h t o ta ta d 3 o e u niln u y r da a t t pl i if Sç W esm i t rl tng Cor v.La psU nlm ie l ,379 S. 2d m ge o he a ntf . e t ns e nvesi p. m i t d, nc. E. 31 31 ( 1 ) Topr t f mai ofa e orea econta t t pli ifmus s 6, 7 Va. 989 . ove he or ton n nf c bl rc,he antf t how t tt r w a a m ee i oft m i on a1 m at r a t m s Se H e'z Cor v.Zurch A m .l . ha he e s tng he nds 1 e i l er . e l t p. i ns Co.49 F.Supp.2d668,676( D. 2007)(t-l bae-i r quie ntf rfndi t , 6 E. Va. kg-he s lne e rme o i ng he l exi t e ofa co r c ,wr te or l i pled,orot r s i a s i ofm ut las e a t senc nt a t it n, a , m i he wi e, s how ng ua s nt t he tmeoft ag e me ,ie,t pr r a k ei oft mi .' ( i Snvde- ki i he r e nt .. he ovebil me tng he nds'' quotng ) rFal ngham v.St kbu c ,457S. 2d36,39( 1 5). oc r er E. Va. 99 ) A ppl ng t s prnci es t c tc ude t tR u he f d i e il t s m a y yi he e i pl , he our oncl s ha t r or s ntted o um r j me onW haln' cai f bra ofc rc. Conta yt t algai i t c ai , udg nt e s l m or e ch onta t rr o he le tons n he ompl nt t r i no e d e t tW ha e a Ru he f d e rag e d t tRut r o d woul pay he a he e s vi enc ha l n nd t r or ve r e ha he f r d r pa tc ars a y, uc l sonei t a ri ul alr m h es n he mountof$ 000 pe m o h. Alhou t W & R 20, r nt t gh he Parne s p A gr em e pr de t tW ha e w ilr c ve a s l r c m e ur t wih he tm e, t r hi e nt ovi s ha l n l e ei a a y om ns a e t r i ef or and experts t Part s p Agr entdoesnotr r Rut f d t f t s ar or f t i e, he ner hi eem equie her or o und he al y s f any pari ardolaram ountt be pai D urng herdeposton,W hal t ii t s peciy tcul l o d. i ii en estfed hat he 11 r c i d mont y c ksfo Rut ror whi h we edr wn fom hi pe s e eve hl hec r m he f d, c r a r s r onalba ng ac ount nki c . ( hae De a 30. Shea kno e d, W ln p. t ) c wldge howe rt t'wn' g hefr wo ddeemi ve,ha t a y Rut ro dl ul tr ne l (hea ntoft mont yc c j' nd,hus t tt a t mou he hl he ks'a t ,ha he mountwa ke . . thi dicei ' s û R . a s s rton.' l (d. t29,95. 1 a ) Gi n t e de i t r c d,i udi W ha e s o n de ii t tm o t c t ve he vi nce n he e or ncl ng l n' w pos ton es i ny, he our co l t tnoras ej yc dfndi W hae sfvoro he cli f brac o c r t ncudes ha e onabl ur oul i n ln' a n r am or e h f ontac. A c r ngl t c twilgr ntRu he f d' m oton w ih r pec t t s c ai . co di y, he our l a t r or s i t es t o hi l m I1. D ani ' M oton f Sum m arv Judam qnt el s i or l CountI oft a ende c pl nt W h e aleg t D a elt tous y i e f r n V he m d om ai , al n l es hat ni or i l nt r e ed w ih t c r t l e a i be wee W ha en a Ru he f d, t rs l r d about hecoupl s t he ontac ua r l tons t n l nd t r or afe he ea ne t e' l t ng pe s land busne sr ai hi To pr va lc a ca m f t tousi e f r nc ongsandi r ona i s eltons p, e i m li or ori ntr e e e wihacmtac orbusnes e tncyi Vigi a, pli ifmus s t c r t i s xpeca n r ni a antf t how:$ 1 t e se ofa û ) he xitnce ( vai co rcua r ai hi orbusne se ca y;( k wl oft rltons por ld nta t l eltons p i s xpe tnc 2) no edge he eai hi e t yont pa t t i e f or ( i e i li e frncei i orca i abrac or xpecanc he r of he ntrer ;3) ntntona ntree nducng usng e h tr nai oft rl i hi o expe tncy;a ( rs tntda get t pa t whos emi ton he eatons p r ca nd 4) e ula ma o he ry e rltons porexpe tnc hasbe dir e ' Dug/n v. ms 360 S. 2d 8 8 ( . eai hi ca y en suptd.' i Ada , E. 32, 35 Va l ( i Chave v.J hns 335S. 2 97,1 ( 1 ) 987) quotng s o on, E.d 02 Va. 985). l t sc e,t pari 'di put c nt son t t r e e e ,whi h r qu r s W ha e t n hi as he tes s e e er he hid l m nt c e ie ln o prove t D ani i ent onaly i er ered wih a cont ualr atonshi orbusi s expect hat el nt i l nt f t ract el i p nes ancy. Folow i t c pl i ofdi c l ng he om eton s over W ha e sonl e de e i s y, l n' y vi nc n uppor oft sel m e i he t hi e nt s r ow n a c c ountofa phoneconve s to w ih Dor sA l f r Rut f r se utve as i t nt durng r ai n t i der e , her o d' xec i s sa , i w hi A l eralegedl i cat t D ani thad t ch derf l y ndi ed hat el ç aken overR ut f d' fnances' and ' her or s i ' ç cut W halnof. ( haln' Ans r t I er aore a 1 ) Thec tag e swihDa elt t e f' W e s wes o ntrog t is t 0. ' our r e t ni ha 12 s he de i i misbl he ra unde Rul 801c( )a 8 oft Fedea Rulsof uc vi nce s nad s i e as y r es ()1 nd 02 he rl e Evi nc ,a t ti c de e nd ha t annotbec i r ons onsdeed ummayj r udgme . nt I h r re i o o iint Da ilsmoi nfrs mmayj d me t W h lnag e t t n e b if n pp sto o n e' to o u r u g n , ae r u s ha t sae tflswihi t a ncye l i s tf t i Rul 8 ( ( ( ,be aus Al fr he ttmen al t n he ge xcuson e orh n e 01d)2)D) c e dere wa a d en a e o eofRut ror ' tt tmet sae ntwasma ( .nOpp' t s n i t nd mplye ag hef d'a he i he ttme de. Br i no Da elsMot a 6,7. Thi ag nthowe r mic tue t r e. Rul 801d)2 ( ni ' . t ) s rume , ve , s onsr s he ul e ( ()D) t ovi s t ta s a e e i nothea s i i w asm ad by a a nta i twho i i of e ed, l pr de ha t t m nt s r ay f t e n ge ga ns m t s fr co e ns a m a t rwihi t s ope oft a nc and w asm a durng t e se e oft nc r te t n he c he ge y, de i he xi t nc he age y. Br v.Ciy o N. c 365F.App' 13,15( h Ci.201 . Tottwihi t s nc ' own ' t f Chiaco, x 7t r 0) i t n hi e l in,ithepr xcuso i q opone oft vi rousa si mus esa ihaf l tont t g nt he cai dmison t tbls omdai ha de ons r t st tt dec a a ta t tm e oft m a ng oft s a em e w asa em pl m t a e ha he l r n t he i he ki he t t nt n oyee ora n agentoft part agai whom t st em e i of er ' A m er c Eagl l Co.v.Thom pson, he y nst he at nt s f ed.' i an e ns. 85F. 327,333( hCi.1 )(nenalcttonomitd) 3d 8t r 996 itr iai te . H er t r d bef e t cour i devoi ofany alegatonsorevi e, he ecor or he ts d l i dence s ugges i t tng hat A l r erwasD a e ' a nta t tm e s m a t r l va sat m e t W ha e l t d,t de f ni ls ge t he i he de he e e nt t e nt o l n. nsea he e de e pr f r d by t de e nt ,i l ng t de ii t s i ony ofAl r e ,D a el a vi nc of e e he f nda s nc udi he pos ton e tm de f r ni , nd Rut f r i c t st tAl r e w or d s e y f Ru he f d. Co i t nt ih t def nt ' her o d, ndi a e ha de f r ke ol l or t r or ns s e w t he enda s e de e,W ha e e phas z m uli e tm e i he own br e t tAl r e w a Rut r or s vi nc ln m i es tpl i s n r i f ha de f r s he f d' a ta e oye Se e. , hae sBri Opp' t Da e' M o. t7(;ti undiputdt t gen nd mpl e. e. R.W ln' .n n o nils ta $ s s e ha 1 A l r e i t a ntofR ut r or a t tm a ng pa e s o bot R ut r or s pe s na a de f r s he ge he f d nd ha ki ym nt n h he f d' r o l nd busnes a ount wa wihi t s peofhere oy nt'. i s cc s s t n he co mpl me .) ' Bas on t f eg ng, he c tc l ed he or oi t our onc udest W hal n hasf ie t m e the bur n of hat e a l d o e r de es abls ng t necess y agency r atons p bet een D ani and A l f Cons t i hi he ar el i hi w el der er. equenty, l W haln' a c e s c ountoft p he honec onve s ton wih Al re i nota m isbl t rRul r ai t de f r s d s i e mde e 80ld)2)D)a ma notbeco i r on s ( ( ( nd y nsdeed ummayj r udgme . Se Ma ylndHihwa nt e r a g ys Contac or A s ' 933 F. a 1 . l t a e e ofa o he e de e t tD a e r t s s n, 2d t 251 n he bs nc ny t r vi nc ha ni l i entonaly i er ered w ih a cont act r atons p orbusnessexpect nt i l nt f t r ual el i hi i ancy,W hal scl m of en' ai t tousitre e eca wihsa Da e' s ori nefr nc nnot t tnd nils ummayj me moin. Ac or ngy, r udg nt to c di l Dani ' m oton w ilbe gr ed. el s i l ant Concl on usi Fort r as sae Rut ror smoto f s he e ons ttd, hef d' in or ummayj me wilbeg a e i pat r udg nt l r ntd n r a d ne i p r, n Da ilsmoinf rs mmayj g n wil eg a td. nd e id n a ta d ne ' t o u r ud me t l b r ne o The Cl k i die t d t s nd ce tf e c esoft s m e o a um opi on and t er s r c e o e ri i d opi hi m r nd ni he ac om pa ng or rt a lc c nyi de o l ouns lofr or e ec d. ENTER: i ûl a o J n , 3. Ths y f u e 201 lt c t vtz Chi fU nie St t sD i t i tJ e t d a e sr c udge 14
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