Crossroads Equity Partners, LLC v. Dogmatic Products, Inc. et al, No. 3:2011cv00069 - Document 72 (W.D. Va. 2014)

Court Description: MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 07/22/2014. (ssm)

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CLERKSOFFI U. DI . CE S. ST COU;T I THE UN I N TED STATES D I STRI COUR T CT FOR TH E W ESTERN DI STRI O F V I I A CT RG NI CHA RLO TTESV I LLE D I I ON V SI AR,nE,((, TO1o V ik AO A . .K u N L JUL 22 2 1 24 JULA C I DL CL EX E BY: CL ER CROSSROADSEQUI PARTNERS,LLC, TY a V igi a Li ie Li biiy Com pa r ni m t d a lt ny, Pl ntf , ai i f Ci lA c i N o.3: CV00069 vi ton 11 M EM O R AN DU M O PINION D O GM A TI PROD U CTS,l C . etal, C N , . By:H on.G l E.Conrad en Chi fUnie St t D it i tJ e t d a es s rc udge Dee ns f nda t . Thi ca e i pr e l be or t c r on t m oton f a t r ys f e a e ns sf l d s s s es nty f e he ou t he i or to ne ' e s nd xpe e ie byt pl ntf, osr EquiyPa t s LLC ($ '. Fort f l ngr a ons t moi he ai ifCr soads t rner, ; CEP') he olowi e s ,he ton w ilbe gr ed. l ant Backtround OnDe e r1 201 CEP l ne Dog tcPr t,l .(d ' $1 000. The c mbe 3, 0, oa d mai oducs nc ( ' 50, 00. DP1) l ni e de e byaPr mis r Not (hei e',a s c edby a Unc tona Guaany oa s vi nc d o so y e t t ' nd e ur Not ) n ondii l r t (heç rnt 'pr de byRe dsE. o t Ila M a aW oodwadMoulon. t ç a y' ovi d Gua ) ynol M ulon, 1 nd ur r t O n O c obe 21 2011, l rD PIf ie t m a pa e sr quied unde t N ot CEP t r , afe a l d o ke ym nt e r r he e, f l d s ta i tD Pla t M o t f rbr a h oft N ot a G ua a y. The de e nt ie ui ga ns nd he ulons o e c he e nd r nt f nda s e nt ly r t i c ve ua l e a ned ouns lt r pr s ntt m i conne ton w ih t c ai sbr e o e e e he n ci t he l m oughtby CEP. t a we stld by c ns lt de e he ns r ie ou e ,he f ndan sa it dt tDPlha notm a pa e sr uie by t dm te ha d de ym nt eq r d t N ot ;t tCEP had de a d pa e ofa ls sunde t not a t tD Plhad no pa d he e ha m nde ym nt l um r he e nd ha t i s s s;and t a s antalsum wasdue undert N ot and Guar y. uch um hat ubst i he e ant Rel ng on t def yi he endant adm i onsand a decl aton f om Charl Lunsf d,isowner s' ssi ar i r es or t a ma r CEPmove f s nd nage, d or ummayj r udgme onM ac 1 201 OnAprl26,201 ha ng nt rh 4, 2. i 2, vi r c ve no bre i opposton fom t de e nt a no f t rr quessf ra e e i of e ei d if n ii r he f nda s nd urhe e t o n xt nson tme CEP fldar uetf e r ofs i , ie eq s or nty ummayj r udgme i isfvo . Theco te e e afna nt n t a r ur ntr d i l o d rg a tn CEP' moi nf rs mmayj d me to M a 8 2 2 r e rn ig S to o u r u g n n y , 01 . Exa l one yea l t r t de e dy r a e , he f ndan s afe r t ni ne c t , t r e ai ng w ouns l f l d a m o i f r le e , ie ton or e i f fom t fna ode, s ntt Rul 60( oft Fe r Rul ofCi lPr ed e Theco t r he i l r rpurua o e b) he deal es vi oc ur . ur hedaheai ont Rul 60( motononNove r4, 3, Att concusonoft he rng, l rng he e b) i mbe 201 he l i he ai t def nda sr ques e l a t tl a de a a i orot revi nce i s he e nt e t d e ve o i e cl r ton he de n uppor oft i m o i t he r ton. By or e e e N ove be 6,201 t c tg a t d t de e nt 'r ques and ga t m t n der nt r d m r 3, he our r n e he f nda s e t ve he e da t s i addii le de e. The e f e , he d e nt fl d a s ve e n- ge dec a a i n ys o ubm t tona vi nc r a t r t ef nda s ie e nt e pa l r to f om M r M oulon a ong w ih f r y-w o pa ofe bis CEP s e nty r quesed a r . t l t ot t ges xhi t . ubs que l e t nd obt i d l ve t de e M r M o t a ne ea o pos . ulon. Folowi t co uc ofM r M o t sde ii CEP l ng he nd t . ulon' pos ton, t l d a s e e al e pons on Dec m be 1 201 By opi on a or re e e Fe ua y 1 i e uppl m nt r s e e r 2, 3. ni nd de nt r d br r 9, 201 t c tde e t def nda s m oton. 4, he our ni d he e nt ' i O n M a c 5,201 CEP t l d t i t ntm o i n s e ng t r c ra t ne f esa rh 4, i e he ns a t o e ki o e ove tor ys' e nd e ns si uredi opposngt Rul 60( moton. Thematrhasbe f l bree a i xpe e nc r n i he e b) i te en uly ifd nd s rpe f deci on. 1 i or si Di cuss on s i 1. At ornevs'Fees t The a ia lt ofat r ys f si adi r iy a ton i ge r ly go r d by sa el w. val biiy to ne ' ee n ve st c i s ne al ve ne tt a $e Hia hiCr diAm.Cor v. g tBa 1 F.d61 631( hCi.1 (ii Cul rs n e tc e t p. Sine nk, 66 3 4, 4t r 999) ctng be to v. ccalCoa Co.495F. 1 1 06( hCi.1 ) I Vigi a coursa r t ûhe M l l , 2d 403, 405- 4t r 974). n r nis t dhee o ' t s c ledç rca Rul 'g erwhihqaprvaii paryge r lyc nnotrc at ne ' o-al Amei n e, und c e lng t ne al a e over tor ys 1Neihe sder quese ahe i on t moton f a t neys f esa expe e . t r i e td arng he i or tor ' e nd ns s 2 fesfom t l i pa t '' Dewber & Da s l v.C3 l ,732 S. 2d239,243( e r he osng ry.' rv vi.nc. NSS nc. E. Va. 201 ( i Uloav.QSP.l .624S. 2d43,49( 2006). Sl sr e howe ,doe no 2) quotng l nc, E. Va. ) d- ul, -hi ver s t pr vent ri st a c r c f om a i pr s onst ts f t r s e pa te o ont a t r doptng ovi i ha hi t he e pons biiy ofa t ne 'f s i lt tor ys ee t t l i g pa t i diput i vi t con r c a' I o he os n ry n s es nvol ng he t a t' d. l t s c e, h t N ot a t G ua a y s k t a t ne 'f s a e ns . The n hi as bot he e nd he r nt pea o tor ys ee nd xpe es N ot pr de t tDP1Cwilpay a1 r s na e cos sa e ns s i udi r as e ovi s ha k l 1 ea o bl t nd xpe e , ncl ng e onabl e at ney' fes i uredby L tor s e ,nc r CEPIi ( f CEP)i taess tf t pur eofcolecin oft s niit ui or he pos l to hi Pr i s y N ot ' N o e a 2,D oc tN o.1 2. Si ia l t Gua a y pr de t tM r a om s or e. ' t t ke m l ry, he r nt ovi s ha . nd M r . oulon m us pa C l c t a e sM t t y ç l os s nd xpens ,i udi r as bl a t ne 'f s whi h m a a es ncl ng e ona e tor ys ee , c y be i ur e i s e s uly e or ng t pa e ofa n o ort pe f m a e ofa nc r d n ucc s f l nf ci he ym nt ny m unt he r or nc ny O blg ton ort s Gua a y. G ua a y a 1, oc tN o.1 3. Undert pl i m e ng oft e iai hi r nt ' ' r nt t D ke he a n ani hes c r t pr s o ,CEP i entte t a a a d ofr as bl f esa e ns s i ured i ontac ual ovi i ns s il d o n w r e ona e e nd xpe e nc r n c n u to wihisc niu def rst c l c tepa me t d eu d r h No ea dt e o j nci n t t o t e fo t o ol t h y n s u n e t e t n h n e G uar y. ant To pr r y c c a e a r as bl f e aw a d,t cou tm us det r i t a oprat ope l al ul t e ona e e r he r t e m ne he ppr i e l t fg e. McAf v. za,7 F.d81 88( hCi. 3) Thi fg ei dee ne by odesar iur ee Boc r 38 3 , 4t r 201 . s iur s tnui d muli yi t numbe ofhour r s bl e tpl ng he r s ea ona y xpende byaras d e onabl houryrt. J. To e l ae J . as r a n wha i r s bl i t r sofholr e nde a r t c r d,t coul co i r t ce t i t s ea ona e n e m zs xpe d nd a es ha ge he ' ns de s he t fcor s tf t i J onv.Geor aHi yExpr s l ,488F. 71 (t Ci.1974 (he a t s e orh n ohns gi ghwa es,nc. 2d 4 5h r )t k ohns f cor' . 1 ;seas Robi onv.Equia I o. r .LLC,560F. 235, ( h k on a t s' d. e lo l ) ns fx nf Sevss 3d 243 4t Ci.2009)(tnde di wha c tt e ate ona e'n r i ci ng t onsiuts ras bl umbe ofho sa rt ,weha l r ur nd aes ve i tucedt tadititc sdicei s dbegui byt (ohns fcor.) Thos nsr t ha src ouM' s rton houl ded he J onl a t s' . ' e f or ar as f l vs: act s e olos ( )Thetmea lbore nde ( t no ly a difc t oft quesi 1 i nd a xpe d;2) he vet nd f uly he tons r s d;3)t s l rquie t pr rype f m t lgals r iesrnd r d;4)t aie ( he kil e rd o opel ror he e e vc e e e ( he at ney'opporuniycossi prsi t i tntltgai ( )t c t r fe tor s t t t n e sng he nsa ii ton; 5 he usomay e f lkewor ( t at ne se cai a t oute oft ltgai ( t or i k;6) he tor y' xpe ttons t he st he ii ton; 7) he tmelmiainsi e byt cintorcic t es ( )t a i i tto mpos d he le rumsanc ; 8 he moun i tn co r rya t rs t obti d;( t e re ,rputton,a a lt of ntoves nd he e uls ane 9) he xpe ince e ai nd biiy t at ne ( 0)t undesr biiyoft ca ewihi t l lcommuniyi he tor y; 1 he ia lt he s t n he ega t n whiht s tar e ( 1 t naur andlngt oft pr e sona r ltons p c he ui os ; 1 ) he t e e h he ofsi l eai hi bewe nat t e tonwya cint a ( 2)atnwys f e a dsi smia ca e . nd le ; nd 1 to ' e s war n i lr s s M cA f 738 F. at88 n. ee, 3d 5. I t sc s ,CEP s e r m bur e ntf r$ 660. i at r ys f sa e ns . n hi a e e ks ei s me o 26, 06 n to ne ' ee nd xpe es Thi fg ei l $24, 0.0 i at r ys f esf 76. hour o wor whi hwasmosl bild s i ur ncudes 81 0 n to ne ' e or 6 s f k, c ty le a or , he our fnds ha he a t r t of$3 0 pe hour2 A ppl i t r l ntJohnson f ct s t c t i t tt t he a e 25.0 r . y ng he e eva r eques ed f are r onabl t ees eas e. To s uppor isf e r que t CEP pr ded de a l d r co dsdoc e i t tm e a l bor tt e e s, ovi t ie e r um ntng he i nd a e p n e o isb h l. Thevatmao i o tmewa ble b s no a s caeJP. c ie x e d d n t e af s j rt f i y s ild y e ir so it . M Gur xpe d ot l Boyd,J . M r Boyd e nde a t a of73.3 hour w or ng on t c s a t rt de enda sf l d r3 . s ki he a e f e he f nt ie t rRul 60( moto i M a of201 Thi i l edtmerviwi a a l ngt hei e b) in n y 3. s ncud i e e ng nd nayzi he de e nt moton a s f nda s' i nd uppori me a m ' es ar hi t l lis sr iedby t tng mor ndu , e c ng he ega s ue a s r he de e nt ;pr rng a i talopposton m em or ndum ; e rng f a a t ndi t f nda s epa i n nii ii a pr pa i or nd te ng he N ove be 4,201 he r ng on t def nda s m oton;r vi w i a a l i t dec a a i m r 3 ai he e nt ' i e e ng nd na yz ng he l r ton a e biss eque l s it d by t de e nt ; e i f a a t ndi t de ii nd xhi t ubs nty ubm te he f nda s pr parng or nd te ng he poston ofM r M oulon; e rng a r pons t M r M o t sde l r ton;and pr rng t i t nt . t pr pa i es e o . ulon' c a a i epa i he ns a motonf at ne 'fesa e ns s Thec trj cst dee nt agumentt tt i or tor ys e nd xpe e . our ee t he fnda s' r ha he 2CEP wasr es ed byator ysfom t lw tr ofW ilamsM ule . CEP s ksr m burem ent epr ent t ne r he a im li ln ee ei s f wor peror e by t parner ,as oras ocit andt eepar l s The parner bil acombi or k f m d wo t s eni s ae, hr aegal. t s led ned t alof14hour ofwor a r esof$425. and $460. r peci y. Thes ni a s at c r an houry ot . s k t at 00 00, es tvel e or s oci e ha ged l r t of$325. The pa algal c r d an houry rt of$1 00. ae 00. r e s ha ge l ae 90. 3 M r Boyd i now apa t ratW ilamsM ule . s rne li ln. 4 a ountoftm e e nd by M r Boyd w a e es i ,a i t a fndst ti w ase i e y m i xpe ed . s xc s ve nd ns e d i ha t ntr l r s bl i lg oft dee nt'tna ousef ' t va at t j eaona e n iht he fnda s e ci fols o c e he udgme entr agans t nt eed i t t m. Se W et Co. M H W ahi t 631F. 51 530( t Ci.2011 (; pa t ca he e iz v. s ngon, 3d 0, 8h r ) t ry nnot A ltga e t nac ous y a t n be he r t c pl n a ii t e i l nd he a d o om ai boutt tm e ne es a iy s n ove c i is he i c s r l pe t r om ng t vi r def e.'(ntr cttona quoai maksomit ) goous ens ' i enal iai nd tton r ) ted . The c t s fndst tCEP pr our al o i ha oduce s tci nte de e t esabls t r a ona e s d ufi e vi nc o t i h he e s bl ne s ofM r Boyd' $ 00ho l r t I a or ncewih e si pr ce nt CEP s i e a , s 325. ury ae. n cc da t xitng e de , ubm t d n l a fda tf om a l a a t ne J m esW .Ba kl y, o s f i vi r oc l tor y, a r e t uppor is f e r ques . See M c e ,738 tt e e t Af e F. a 91(' f a ia i oblgedt s w t tt r se houryrt ar c itntwih 3d t ; ee pplc nt s i o ho ha he eque td A l aes e onsse t t pr valngmake rt i t r e ntc he e ii r t aes n he elva ommuniyfrt tpeofwor f whih ghe t o he y k or c t a ia ls e a awa d. Thee denc weha de medc tntt s prvalngmake pplc nt e ks n r vi e ve e ompee o how e ii r t rt i l a es nc udesaf i vis ofot r l all w ye s who a e f m ii rbo h w ih t s lsoft f e fda t he oc a r r a la t t he kil he e a ia sa mor ge rlywiht t ofwor i t r e ntc pplc nt nd e neal t he ype k n he elva ommt t ')(ntr lctton miy. i ena iai ' a quotto maksomit . I t d lrton,Mr Baklyi c tst thei fmiirwih nd ain r ted) n he ecaai . r e ndiae ha s a la t t l gals r e pe f r e i t s c s ,M r Boyd' ed a i lbac ound a e re ,a he e e vi es r o m d n hi a e . s uc tona kgr nd xpe i nce nd t hour y r t c r by a t r he l a es ha ged t o neysi t r o wih c pa a e kno l dge, xpe i nc ,a n he egi n t om r bl w e e re e nd e r i e. The dec a a i c i m st tt houry r t c r d by M r Boyd i r s na e a xpe ts l r ton ontr ha he l a e ha ge . s ea o bl nd c i t ntwih t houry r t s c r d by ator ysa ot r1 w tr s wih c pa a e ons s e t he l a e ha ge t ne nd he a i m t om r bl know l ,c pe e y, nd expe i e i t sr on. edge om t nc a renc n hi egi A lhough t de e nt c t nd t tM r Boy shoury r t i exc s i t y of e no t he f nda s on e ha . d' l a e s e s ve, he f r evi dence t r ut M r.Bar ey' decl aton,and i ead ques i t ext ofM r Boyd' o ef e kl s ar i nst ton he ent . s experence i f alcourt H owever abasi Lexi sear r i n eder . , c s ch eveal over20 f alcasesi w hi s eder n ch M r Boyd w as i iied as couns ofr . dentt el ecord,and basi PA CER sear c chesr evealnum er ot ous hers t tdi notg r t publs o ni . The c ti co nc t tM r Boyd' f de a ha d ene a e ihed pi ons our s nvi ed ha . s e rl ltga i e re w e g i f vo ofa a di hi r quesed f e, do t qua iy ofhi l ga ii ton xpe i nce i hs n a r w r ng s e t e as he lt se l w o k a t r s t he obt i d f hi cle . M or ove , r Boyd' houry r t i no i e s r nd he e uls a ne or s i nt e rM . s l a e s t n xce s oft e a o d i ot rr c ntf de a c e i vi a t ne w ih s m iarexpe i nc Se hos ppr ve n he e e e r l as s nvol ng tor ys t i l r e e. e, eg.M c e 738F. a 91( vi de ee et t dititc tsdeemi tont tt . , Afe, 3d t gi ng f rnc o he src our' tr nai ha he $365. hou l rt bildbyasni a s aewasr s bll Ba rv.CounyofFr rck, 00 ry ae le e or socit eaona e ; be t edei No.5:2CV037, 3U. DitLEXI 1 253, t*5n. ( . Va. une21 201 )(i ngt t 1 201 S. s. S 01 a 1 W D. J , 3 tndi ha t $325.0houryr t c r by as ora s aewa r s bl . he 0 l ae haged eni socit s eaona e) Fora loft e r as , he c r fndst tt tm e e nde a r t sc r d by c 1 hes e ons t ou t i ha he i xpe d nd a e ha ge ouns el w e e r s bl ,a t tt r l va tJ m s f t s s r ea ona e nd ha he e e n ol on ac or uppor t nm ountc a m e Acc di y, t he l i d. or ngl t co twilg a tCEP' r ques f at ne 'f esi t a ou of$24, I OO. he ur l r n S e t or tor ys e n he m nt 8 O. l1. E xpens es CEP as s e r i bur e ntf r$1850. i ltgai n e ns s. Thi fgur lo e ks em s me o , 06 n ii to xpe e si e e om pa s l l es a c f es c t e tng f es and m i c i ra t a e ns s The nc s es ega r e r h e , our r pori e , nor our e nd r vel xpe e . d fn a t ha en trie a ys e ii o j cin t ter q se e pe s s Th c u tidsta ee d ns v o as d n p cfc b e to s o h e uetd x n e . e o r fn h t t e ns sw e e r as bl i ur ed,a t tCEP i e il d t r i bur em e u rt he xpe e r e ona y nc r nd ha s ntte o e m s nt nde he a i bl pr s ons oft pari 'ag ee e s pplca e ovi i he tes r m nt . Concl on usi Fort r s sa e CEP' m oto f a t ne 'f e a e he ea ons t t d, S i n or tor ys e s nd xpens sw ilbe g a e a e l r nt d, nd CEP wilbe a r d f esa e ns si t t t a l wa de e nd xpe e n he o al mountof$ 660. The Clr i die t d 26, 06. ek s r ee t s copi oft s m em or o end es hi andum opi on and accom panyi or t a1 couns ofrecor ni ng der o 1 el d. a tl y 01 Ex-sR.'hi Ja* d yo-ul, 2 4. r :r s Chi U nied St esD i r ctJudge ef t at sti 6

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