Martin v. U.S. Bank National Association et al, No. 6:2012cv00002 - Document 25 (W.D. Va. 2012)

Court Description: MEMORANDUM OPINION. Signed by Judge Norman K. Moon on June 19, 2012. (sfc)
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# ' 11 < :nF l k4 sIE x u.' > 4T(Fe: 1 e Y Y 7PIV y , NfI J A .. FlK k . IN THE UNI TED STATESD I STRI C OURT CT FoR THE W ESTERN D I STRI OF V I NI CT RGI A J 19 2 , UN 92 LYNCHBURG D I SI VI ON BK .. w - N < DEpU k:: r x q . u ' usjx ; j . u CAS N O.6: 2- 00002 E 1 cv- PAUL A .M ARTI N, Pl nf aitf M EM OM NDUM OPm I ON U . BANK N ATI S. ONAL A S OCI ON AND S ATI SAMUEL 1 W HI P. . . TE, C , JUDGEN ORMAN K .M OON Dee d ns f n a t. Thi mat ri be or t Co ton am o i t dim isf f l e t sa e acli fld by s te s f e he ur ton o s s or aiur o tt a m ie Dee tU. Ba Nai Asociton ($ S.Ba '. On Marh 21 201 Ic fndan S. nk tonal s ai 1 U. nk' ) c , 2, onduce a td he rng o De e nts frtm oton t dim is t orgi c a i n f nda ' is i o s s he i nal ompli of Pli ifPa M a tn a nt antf ul ri (c ri '. Att he rng,M atn a e t dr Sa l1 W hie,P. asadee n i t s 1Ma tn' ) he ai ri gred o op mue . t C. fnda t n hi a to 1r que t d l a t a e hi c pl i , a r pr e e t he woul ,i gr nt d s h ci n, e se e ve o m nd s om a nt nd e es nt d hat d f a e uc la a ndon t oft e s c t i d wihi hi o i na co pl i . The s m e da 1 e ve, ba wo he ount on a ne t n s rgi l m ant a y, i s d a or r gr ntng M a tn l a t f l a a e ed com pl i a de ng U .S.Ba s s ue n de a i ri e ve o ie n m nd a nt nd nyi nk' m o i t dim isasm oo . ton o s s t On Aprl4,201 M a tn fl d hi a e d c i 2, ri ie s m nde ompl i i whi he alege asnge c e ant n ch l s i l aus ofa ton f acualfa a ns U . Ba c i or t r ud gai t S. nk. The e tr on Aprl 11 201 U . Ba fld a r afe , i , 2, S. nk ie moto t dim isM ari s ame in o s s tn' nded compl nt Fort r as t tf l , Iwilg a U. ai . he e ons ha olow l r nt S. Ba sm o i nk' ton. 1By a e ng t d op Sa uel1 W hie,P. asadefndant M a tnefe tvel conce t t Cour hasdieriy gr ei o r m . t C. e , ri f c i y ded hat he t v st j rs it no e t sa t n, ihU.. n rmo e fo teBe fr Co nyCic i Co r o Jnu r 5 201 uidci v r hi ci whc S Ba k e v d rm h do d u t rut u t n a ay , 2. o o Sa ue 1 W hie P. wastr i td a adeenda i t sm at o M a c 21 201 m l . t, C. e m nae s f nt n hi ter n r h , 2. L BACKGROUND Thi aci a iesoutofU . Ba sf e os e and s l ofa hom ei M one a, r i a s ton rs S. nk' or cl ur ae n t Vig ni t twa f me l owne by M a tn. The f c sa lge i M a tn' a ha s or ry d ri a t le d n ri s mended c pli ,whih a om a nt c t t ss a lm us a ce ast u a e asf l s hi t ge t c pt r e, r olow . l Fe ua y 2011,M ari f t tr ttme,f ied t ma t m ont y pa e on t n br r tn, or he i s i a l o ke he hl ym nt he home morga l n heha obti d fom U. Ba i 2009.l Aprl M a tn, t ge oa d a ne r S. nk n n i, ri who wa byt t s ha tm e t m ont de i ue i m a ng pa e s on t m or g ,c a t d U . Ba l i o de i wo hs lnq nt n ki ym nt he t age ont c e S. rk n r r t r ques a l n m odi a i A U. Bal r e e atve wih whom M a tn s o e t oa fc ton. S. rk epr s nt i t ri poke t d hi ol m t ti or rt be e i bl f ra i a ng Hom e Afor bl 'l n modii a i M a tn woul ha n de o lgi e o s ki M s f da e' oa fc ton, ri d ne d t be i deful f t e m ont . Howe r i J y 2011 U. Ba notfe M a tn t the e o n a t or hr e hs ve , n ul , S. nk ii d ri ha ha bee de ne f t EM a ng HomesAfo da e'l n m odii a i bec us t tpr a d n di d or he t ki f r bl' oa fc ton a e ha ogr m onl a id t l nscl e prort J nuay 2009 ( a tn' l n had cos i M ac 2009 . y pple o oa os d i o a r M ri s oa l ed n rh ) How e r o J y 27, 2011 U . Bal of e e M a tn a opporuniy t a y f a (l n ve , n ul , S. lk f r d ri n t t o ppl or toa wor ' pr r m . On Aug t2,2011 M a tn s kout' og n us , ri ubmit hi l n wor ted s oa kouta ia i t U. . pplc ton o S Bnn M a tn cli t t fom t da e un i Nove r 1 2011 he r a l c k. ri a ms ha , r hat t tl mbe 4, egulry omm unia e c td , wih U . Ba vi e lc r s t S. nk a mai ore ponde a t lpho c ls nce nd ee ne a l. By l te t hi da e Se e be 29,2011 U .S.Ba i onued M a tn t thi ei biiy e t r o m t d pt m r , nk nf ri ha s lgi lt woul be de e ne wihi t ry c e rda , a t tdurng t tm e t ti wa pr es i d t nni d t n hit alnda ys nd ha i he i ha t s oc sng hi a plcai n,i woul no r f M a tn' l n t f ecos eorconduc a s he e f e l ur s p i to t d t e er ri s oa o or l ur t c dul d or c os e s ei t l wasar dy i f e os e.U .S.Ba f t sa e i t l te t ,n t e nt al f he oan lea n or cl ur nk urher t t d n he et r hat i he ve i di nota o M a tn f a f r c os e at r tve M a tn woul r ceve a non- ppr t d ppr ve ri or o e l ur le na i , ri d e i a oval notc a M a tn c e ,a opporuniy t a a U .S. Ba s dec s on. By l te da e i e nd, ri ont nds n t t o ppe l nk' ii et r t d Nove be 3,2011 a r ceved by M a tn on Nove m r , nd e i ri mber1 , 2011 U . B a i onue M a tn 0 , S. nk nf d ri t ta tr ltons p mana r'ha bee a sgne t as ithi . M a tn a s rs t tU . Ba ha sea i hi ge ' d n s i d o ss m ri s e t ha S. nk ne ra f r hi a o ve f o ded m n pporuniy t s k wih t si vi ua . t t o pea t hi ndi d l M a tn a lgest ton N ove r 9,2011 he c le U. Bank a r se an u t ri le ha mbe , a ld S. nd eque td pdae on t sat ofhi a iato A r pr e ai t d hi t hi a i a i was silbei he t us s pplc i n. e es nt tve ol m hat s pplc ton tl ng r vi wed. W he M a tn c l aga n on N ove b 1 2011 a U . Bank r pr s nt i t d e e n r i aled i m er 4, , S. e e e atve ol hi t hi a i ton ha be n de e a t thi pr ry ha be n s d a af e l ur s l m hat s pplcai d e ni d nd ha s ope t d e ol t or cos e a e e ri r t tmor ng. Ale dl t r pr s nttve t l M a tn t thi a ia i ha be n a le ha ni 2 l ge y, he e e e a i o d ri ha s pplc ton d e de e bec us t val oft pr ry exc ede t o sa ng prncpa owe on t l n, nid a e he ue he ope t e d he ut tndi i i l d he oa a be aus M ari sl n pa e c d no ber e by l orm or M a tn cai st he nd c e tn' oa ym nt oul t educ d 0% e. ri l m hat di notr c ve U. Ba l s non- ppr lnotc whih wa da e N ove be 1 2011 untl d e ei S. rk' a ova i e, c s td m r 0, , i N o be 28 2011. vem r , On t ba i of t e f t ,M a tn c ai s t t U . he s s hes ac s r i l m ha S.Ba i e i ly m i l d hi t nk nt ntona l se m o bele t thi pr ry woul notbes d ata f e os e s l untlhe ha trtr e ve a nonive ha s ope t d ol or cl ur a e i d i s ec i d a ova notc a oppor t iy t a alt tde s on,a c nc t e or ot r a t m a i s t ppr l i e, n tm t o ppe ha ci i ha e o xpl e he le tve o f e l ur a a o or c os e, nd n pporuniy t brng hi m orga c r nt I t s ve n,M a tn m a nt i t t t t o i s t ge ur e . n hi i ri i a ns ha he de rm e a l r le on U . Ba s m i r pr s nt tons W ih r s c t r i ,M a tn s e t i nt ly e i d S. nk' s e e e a i . t e pe t o elef r i e ks a o derde l rng t s e of hi pr r y n la voi and he a kst tIr i t t hi m orgag n r c a i he al s ope t ul nd d, s ha e ns a e s t e upon pa e oft o s andi prnci a i e e tow e on t l n.3 ym nt he ut t ng i pal nd nt r s d he oa 2M a tn co e t tt oughoutt tm e t the w a tyi t obt n a l n m odiiato , U . Baz ha be n ri nc des ha hr he i ha s r ng o ai oa fc in S. lk d e r i l s dulng hi pr ry f f e os e s ls snc Augus 20l1 Evi nty,prort t Nov outney che i s ope t or or cl ur ae i e t . de l i o he ember 1 , 4 20l1s e,ea h tmet pr ry wa s hedul t bes d,U. Ban woul notf M ari a oxi t yt da al c i he ope t s c ed o ol S. k d iy tn ppr mael wo ys beor ha t ti wa posponi t s e i lghtoft f c t thi a iaton f a l n modika i wa sil f e nd ha t s t ng he al n i he a t ha s pplc i or oa t ton s tl bengr ewe i evi d. 3Pl nl, i t c s of a ndi hi c ai y n he oure me ng s ompli ,M a tn has dr ant ri opped hi cli t da s am o mage fom U .S. Bank. sr Ho v r ta fc d e n tdv s teCo r o isdiest j rs ito o e ti a to . P s-e v le e t, we e, h t at o s o iet h u t f t v ri u idcin v r hs cin o trmo a v ns y icu ig te a n ig ofa c mpan i o d rt rd c te a u ti c nr v ry b lw tej rs ito a n ldn h me dn o lit n r e o e u e h mo n n o to es eo h u idcin l trs l,d n todn rl d p iefd rlc u t o dv ri j rs ito (su ng a i tec s h r,h tsc h ehod o o riai e rv e ea o rs f iest uidcin a s mi , s s h ae ee ta u h y y j s ito e itda tetmeo rmo a) S eS.Pa lMe c r I d m.Co v Re Ca Co, 0 U. 28 , 9 midcin xse t h l f e v l. e t u r uy n e . . d b .3 3 S. 3 2 2 ( 9 ) (An t o g ,a h r ,t e plitf a tr r mo a ,b si lto b a fd vt o b < c n i ue ...> 1 38 t d h u h s e e h an if fe e v l y t a in, y fi a i r y o tn d t pu , l .LEGAL STANDARD l A moin t dimispurua t Fedea Rul ofCi lPr dur 1 b)6 tsst l al to o s s s nt o rl e vi oce e 2( () e t he eg s fce ofa c ufi incy ompl i t de e newhehe t pli ifha pr ry s ae acli ;itd ant o t nni t r he antf s ope l tt d a m t oes i no r s veco e t s t e ol nt ss unoundi t f c s t me isofacli ,o t a i biiy o de e e . ng he a t, he rt a m r he pplca lt f f ns s' ' Re bia pl l o c.v M a t 98 F.d 9 3, 5 ( t Ci.1 9 ) l c nsd rngaRu e pu lc n r fN . ri 0 2 4 9 2 4h r 9 2 . n o i ei n, l 1 ()6 moi n a c ur mu ta c p alfcu lalg to s i t e c mp an a tu a d mu t 2b ( ) to , o t s c e t 1 a t a le ain n h o lit s r e n s dr w a1r as bl i er nc i f a l e ona e nf e es n avorof t pli if Erc s v.Par ,551 U . 8 94 he antf . ik on dus S. 9, ( 2007) Le lc l i i t g s offcua algai ,howe r ae no e ild t a . ga oncusons n he uie a t l le tons ve , r t ntte o p eu to o tuh.As c o v I b l 5 6U. 6 2 6 0 ( 0 9 . rs mpin f r t h rh . q a , 5 S. 6 , 8 -81 2 0 ) Alhoug a compl i tdoe no ne d de a ld f c ua alegai ,apl ntf soblg i t h ant t s t e t ie a t l l tons ai if i aton t p o i ete g o n so h se t ll n jt r l frq ie mo e ta lb l a d c n lso s o r v d h r u d f i ni e me t o ei e ur s r h n a es n o cu in , t e and a f onnul c r ia i oft elm e s ofa ca e ofaci wilnotdo.' Be lAt.Cor v ai ect ton he e nt us ton l ' l l p. . T mby 5 0 U. 5 4,5 5 ( 0 7 (iain a d itr a q oain makso te ) t cu l wo l, 5 S. 4 5 2 0 ) ctto s n n en l u tto r mitd . Ta ta alegai mus be e ug t r s a rghtt r le abo t s c a i l l' I I ot r l tons t no h o aie i o e if ve he pe ultve eve .' d n he wods Rul 1 b)6)doe S tr r heg e fc pla ng ofs ciis butonl e ug r , e 2( ( s ç equie ihtned a t e di no pe fc , y no h f c st sa ea ca m t r le t ti pl usbl on isf c ' I a 570. a t o tt li o ei f ha s a i e t a e.' d t W he as he e,a pl i i f as e t a c ai f f a he m us s a e w ih pa tcul rt t n, r a ntf s rs l m or r ud, t t t t r i a iy he cic tnce t tc tt e t fa Fe R.Ci P.9( . Faiur t compl wih t s rumsa s ha onsiut he rud. d. v. b) le o y t hi pm iulrt rquie ti te td a afiur t saeacl m unde Rul 1 b)6) Har ion v c aiy e r men s r ae s al e o tt ai r e 2( ( . rs . We tn o s S v n h Rie Co, 1 6 F.d 7 6, 78 n. ( t Ci. 1 9 ) d -l e sigh u e a an a v r . 7 3 7 3 5 4 h r 9 9 . tlh l< ...c i d > a e ontnue m ndmentofhi pl di ,r duc t cam beow t r st a ount t sdoe no deprve s ea ngs e es he li l he equiie m , hi s t i tedsrc c u to j idcin.l seas T eButCo v Clrn o Na 1Is Co, 8 F. p' 8 2 8 4( lh h itit o r furs ito '; e lo h r . . a e d n t n . .3 5 Ap x 9 , 9 1t ' Ci.2 0 Cl e t o c ni g a rrmo a,s h a tepotrmo a a n me to a c mpan t rmo e r 01 ) tqv ns cu n he e v l uc s h s-e v l me d n f o lit o e v ce ti cam s whih m a r duce t da age r ove a e bel t a ounti contovery,do notdi s t ran li , c y e he m s ec r bl ow he m n r s ve t he dititc u to j rs ito .l Po s h CasNL.-. I c v Poshen t 3 2 F.d 2 ,2 5 6 (t Ci.2 0 ) src o r f uidcin' ; rc e r , , n . . rc .e, 0 3 48 5 -5 4h r 0 2 ' 4 (I c utd tr n ste e se c o dv ri j rs ito a tetme te a t n i fld rgadls o ltr tA) o r eemie h xitn e f iest uidcin t h i h ci s i , e r e s f ae t y o e c a g si oii ly cu ilfcss c a te p ris ctznsi o te a u ti c nrves ' (i to sa d h n e n rgnal rca a t u h s h at ' iie hp r h mo n n o to ry.) ct in n e ' a itra q oainmak o te ) nen l u tto r s mitd . Tic msa e 'rq ie t b p e wi p riua i u d rRue 9 b a e < tme plc ,a d cru tnc s e ur d o e ld t atc lrt n e l ( ) r t i , a e n h y he c e s of t f s r pr en a i , a wel as t i ntt of t pe s m a ng t ontnt he ale e es t tons s l he de iy he r on ki he mirp e e tto a d wha h o tie t ee y.' d a 78 ( u t 5Ch re Aln W rg t& se rs nain n t e ban d h rb ' 'I t 4 q oi ng als a ih ArhurR. ilr Fe r Pr tc an Pr e r Cii j290a 590( ed.1 ) Condii t M le , de al acie d oc du e: vl t 2d 990). tons ofa pe s s m i s as m ai e,i e ,a kno e r on' nd, uch lc nt nt nd wl dge,a e e m ptfom t s pa tc a iy r xe r hi riul rt rquie nta ma be aleg ge r l Fe R.Ci P.9( . : cour s ul heiae t e rme nd y l ed nealy. d. v. b) $ A t ho d stt o ds s ac mplitu d rRu e9 b i tec u tss tsid( )t a t d fn a th sbe nma e imis o an n e l ( ) f h o r i aife 1 h t he e e d n a e d a e oft pa tc a cr m sanc s f whih s wilha t pr pa e a def ns a ti ,a war he ri ulr icu t e or c he l ve o e r e e t ral nd s 3d ( t tpli ifhass tntalpr s ovey e de e oft e fcs' H arrion,176 F. at 2) ha antf ubsa i edic r vi nc hos a t. ' 78 4. 111.D l scrssl oN I i we le tbls d t tf der lco t sti i di r iy a y t s t ntve lw of t s l- sa ihe ha e a urs itng n ve st ppl he ubsa i a t f um sa e,i l ng t f u sat s c c of 1 w r l s Se Sal Re na Col. v he or tt ncudi he or m t e' hoie a ue . e ve gi l . Ru s l,499 U. 225,226 ( 991 (ii EreR.Co.v Tompki ,30 U. 64,78 ( 938 I s el S. 1 ) ctng i . ns 4 S. 1 :. n Vigi a,t s tntve lw oft plc of t wr gove s t pr ee ng. Se Fr v r ni he ubsa i a he a e he ong m he oc di e ye . Common alh,345 S. 2d 267, 27 ( .1 8 ) Ac di y,i t cas a ha Vigi a' we t E. 2 Va 9 6 . cor ngl n he e t nd, r ni s lw o fa a i s a n r ud pple . Be us t m i r pr e a i a l ge y co m uni a e by U .S.Ba r e e d f ur ca e he s e es nt tons le dl m c td nk ef r nce ut e e nt ,t y a e pr pe l a s s d i a cli f a t l as o ve s he r o ry s es e n a m or c ua , ppos t c tu i fa ed o onsr ctve, r ud. Se e Su r u,I .v Johns 666 S.E.d 3 5 3 - ( . 0 8 (tt t tat o g acam f r pe val nc . on, 2 3 , 41 42 Va 2 0 ) sai ha lh u h li o ng c t u tv f a ca ons r c i e r ud nnot be bas on a pr i e of f ur a ton, C f a de e nt m a ed om s ut e c i t i f nda kes a pr ie t t w he m ade he has no i e i of pe f m i , t t pr i e i c i r a om s ha , n nt nton r or ng ha om s s ons de ed , m ir pr s nt ton ofpr s ntf cta m a f m t ba i f a cai ofa t lfa .'. I or r se e e a i e e a nd y or he ss or l m c ua r ud ' n de ) t sae a cam u e Vigna 1w f r a ta fa d a panif mu t alg :ç 1 a f le o tt li nd r r ii a o cu l r u , litf s le e $ ) as ( rp e e tto ,( )o maeilfc,( )itn in ly a d k wigy ma e () wih itn t e r s nain 2 f tra a t 3 ne to al n no n l d , 4 t ne t o mila ,( )wih rla c by te pat mild ( )a d wih rs lig d ma e o ij r t t e se d 5 t ein e h ry se , 6 n t e utn a g r nu y o h mildpary.'Howarhv Roc n se t ' t . kigham Publ' Co.20F.Su 2d959,970 ( . Va.1 ) g , pp. W D. 998 . M a tn c e t tU. Ba m a s ve alf ler e e a i i c ri ont nds ha S. nk de e r as epr s nt tons n onnec i wih hi ton t s a t m pt t m odiy hi l n. Fi s ,M ari cl i s t tt Se e ber 29,2011 l te f om U . te s o f s oa rt tn a m ha he pt m et r r S. ba f s y a s e hi t thi elgbiiy f t l n m odii ton woul bede e m i d wihi nk alel s ur d m ha s i i lt or he oa fca i d t r ne t n t ry c l nda da , w hen i a t lt i t hit a e r ys r i hi n c ua iy, t ook f t t o da . A c di t M a tn, t s or y-w ys 4 cor ng o r pr e a i n m a hi beleve t t t f e os e s l s he e f N ove be 1 2011 e es nt to de m i ha he or cl ur a e c dul d or m r 4, w oul notoc unl s he ha hea d bac f om U . Ba r r ng t s a us ofhi a i a i d cur es d r k r S. nk ega di he t t s pplc ton. Howe ,t e i no hi i t lterdeca i t tt t ry- y tm e lmi woul be n o ver her s t ng n he e t lrng ha he hit da i i t d gi n Se e be 29. To t conta y,t l te s a e t t t t ry days w oul begi t r onc pt m r he r r he e t r t t s ha he hi t d n o un e M ari sa plca i pa gewasde e m i d t bec tn' p i ton cka t r ne o omplt ,a M a tn doe notal geon wha e e nd ri s le t da t tmi htha be n.M or ve ,t lte doesnots y ha g ve e eo r he e tr ugges t t i t r viw pe i we et t ha , f he e e rod r o t ke l a onge t n t ry da , a pendi f r c os e s l w o d ne s a iy be pospo d o r ha hi t ys ng o e l ur a e ul ce s rl t ne r c nce ed.5 a l Se ond,M a tn c am s t tt Se e r 29,2011 lte fom U . Ba r pr e e c ri l i ha he pt mbe e tr r S. nk e es nt d t ti t e nthi a i ton wa de e hewoul be gi n t r as f hi i lgi lt as ha n he ve s pplca i s nid, d ve he e ons or s nei biiy we la a opporuniy t et ra l s n t t o ihe ppea t te i biiy de son orbrng hi m org cu r n . I l ha lgi lt cii i s t age r e t n pe tne pa t t l te s a es r i nt r , he e t r t t : 4I i pr pe t c i rt ltera t ssa , frac p o awrt ni tu n t ti a e hi tt apla ig(n t s o r o onsde he e t t hi tge o o y f it nsr me tha s n x bi o e dn i e t sc s,Ma t ' a n e c mpan)i d e d a p r o ta pla ig. Fe . R.Ci.P.1 () T mp o v hi n at f h t e dn d G ae ri s me d d o lit s e me v 0 c; ho s n . r e c 4 7F. d2 3 2 8( t Ci. 0 5 . c n , 2 3 6 , 6 4h r 2 0 ) 5I i notcla pr ciel whe M a tn' l w e i o f r cl lr ;ho e r i hi r s e t U . . Ba s moton ts er e s y n ri s oan nt nt o e osze w ve n s e pons o S nk' i , t dimis M a tn sae t tdurng t pe nc oft r viw ofhi l n m odii ton a ia i , U . Ba o s s , ri t ts ha i he nde y he e e s oa fcai pplc ton S. nk pospone s ve a s dul f r cl ur s lsofhi pr ry,begi ng i Augus 2011. t d e r l che ed o e os e ae s ope t nni n t Durng t tm e yo r ue ti beng pr e s d,we wilnotr e yo l n t i he i ur eq s s i oc s e l ef r ur oa o f e os e o c or cl ur r onduc a s he ed f e os e s e i yoz l n i alea i t c dul or cl ur al f lr oa s r dy n f e os e. l yo r e ve a N o Appr or cl ur f u ec i noval N otc you m us c a t us i e, t ont c i m edi t l t di cus t r a on f non- ppr l i you w i h t a m a e y o s s he e s or a ova f s o ppea our l de i i c s on. Onc t de i i ha bee m a t t you a e not a oved f an e he c s on s n de ha r ppr or y at r tve t f ecos e,we wilr gr ta y pur ue f e os e a t s l of lenai o or l ur l e e tbl s or cl ur nd he ae yourhom e i you ar una e t pa yourm or ga orbrng i cur e . f e bl o y t ge i t r nt Am .Co pl Ex.B. W hie t s lngu mi ht a fr tbl h,i pl t tM a tn ha a rg t m . l hi a age g , t is us m y ha ri d iht o a alor brng hi m or ga c lr pr ort a f e l ur s l ,a cl e r adi r ve s t tU . ppe i s t ge tr ent i o or c os e a e os e ng e al ha S. Ba di no afr tvey saet ti woul rfai fom f ecosngon( s lng t pr ry nk d t fimai l tt ha t d er n r or l i or eli ) he ope t afe de alof t a i a i t r ni he pplc ton. l ot w or ,t l te does no cont n a r pr e a i t t n her ds he e t r t ai e es nt ton ha M a tn w oul be gi n tm e t pur ue ot r optons i t eve t t hi a i aton f a ri d ve i o s he i n he nt ha s pplc i or mo fc ton wa de ed. l f c,depie t lte ' rfr nc t t potntalf a a al#diiai s ni n a t s t he etrs ee e e o he e i or n ppe M a t w e e t r ce ve a non- ppr ri n r o e i a ovalno i ,U . Ba e i il s a es t ti w oul pur ue a tce S. nk xplc ty t t ha t d s f e l ur s eGl-ncet de sonhasbe madet tyouaenota ovedf a ale tve orcos e al Gbl he cii en ha r ppr or ny tmai t f e os e.'I (mphassadde . o orcl ur ' d e i d) Furhe ,t l te does nots a e t tU . Ba w oul wai t c t r he e t r t t ha S. nk d t o onduc a f e l tr s l t or c oste a e untla trM a tn r c ved hi non- ppr va notc W hie t lte s i fe ri e ei s a o l i e. l he e t r ugge t t r i a wa t s s he e s y o a a de al of t a ia i a r fom i t c i t borowe t c a t U. Ba ppe l ni he pplc ton, pa t r nsnltng he r r o ont c S. nk i e a ey,t lterdoesnote tbls a gr eperod durng whih U . Ba pl dge t t mm dit l he e t sa ih ny ac i i c S. nk e d ha i woul notmove f wa d wih a pr vi l s hed e f r c osze s e oft pr ry. To t t d or r t e ousy- c uld o e l tr al he ope t he e e t tM a tn as e t t ts h r pr s nttonswe e m a i phone conve s tonswih U .S. xtnt ha ri s rs ha uc e e e a i r de n rai t Ba r pr s nttves he ha f l t al ge t naur of t e ca l wih t de e of nk e e e ai , s aied o le he t e hos ls t he gr e s cfct de pe iiiy mande byFe a Rul ofCi lPr e e9( . d derl e vi oc dur b) Thid,M a tn alege t tU. Ba mir pr s ed t c ent of t non- ppr r ri l s ha S. nk se e ent he ont s he a oval notc A c or ng t M a tn, he notc w a s i e. c di o r i t i e s uppos d t i ca e t r as n he w asi i i e f e o ndi t he e o nelg bl or t l n m odii a i t r by a l i hi t r m e t detc e y. I i t t t he oa t c ton, he e low ng m o e dy he i i nc t s rue hat he Se e be 29,2011 lte saes t ti t eve M ari wasdeer i d t be i i bl f a ptm r e tr t t ha n he nt tn t m ne o nelgi e or l n m odiiato a non-ppr lnotc satng t r s f hi i lgi lt woul be is d. oa fc i n, a ova ie t i he ea on or s nei biiy d s ue Ho v r a lh vej s de cie ,U. Ba k d e n tsae i t S p e e 2 lte t ti we e , s a u t s rb d S. n o s o tt n he e tmb r 9 etr ha t woul wai f M a tn t r ce ve t non- ppr d t or r i o e i he a ovalnotc be or pr e ng w ih a f e l ur i e f e oc edi t or c os e s l m uc l s a pr vi l s he e f e l ur s e as w a e de l t c e he e. l t a e, h es e ous y- c dul d or c os e al s vi nty he as r n he non- ppr va notce ofN o m be 1 2011 whi h M a tn r ei d on N ove be 28,2011 U . a o l i ve r 0, , c r i ec ve m r , S. Ba l e a ns t t i de e M a tn' a i ton on t bas s of i onna i n ga he e f om rk xpl i ha t ni d r i s pplca i he i nf to t rd r na i lc edi r pori a nc es The non- ppr lno i goes on t s a e t tU . Ba twil tona r t e tng ge i . a ova tce o t t ha S. nk d l r gr ta y pr e t ough t f ec os e pr es i yo l n i notbr e e t bl oce d hr he or l ur oc s f ur oa s oughtcur e o pa d of r nt r i f pror t a s he e f r c os e s l .' O f c s by t tm e M ari r ce ve t s notc ,hi i o c dul d o e l ur a e ' our e, he i tn e i d hi ie s home ha ale y bee s d. Ac di y,he a gue t t U. Ba di no afor hi t d r ad n ol cor ngl r s ha S. nk d t f d m he opporuniy i i id he woul ha t brng hi l c r nt t t t mple d ve o i s oan ure .But t f c r m anst tdes t , he a t e i ha pie M a tn' cl i s t t c r r t Se e be 29 l te di no g r nt e t the w oul r ce ve ri s a m o he ont a y, he pt m r e t r d t ua a e ha d e i m or de a l d i or a i i t non- ppr e t ie nf m ton n he a ovalnotc t the woul be gi n tm e t a es t i e, ha d ve i o ddr s he c us ofhi i lg biiy,or t t he woul be pr vi wih a opporuniy t brng t l n a e s nei i lt ha d o ded t n t t o i he oa c r ntupon r ce ptoft non- ppr ur e e i he a ovalnotc i e. Fi ly, M a tn c a m s t t U . Ba s as i ent of a r l to hi m a ge t hi na l r i l i ha S. nk' s gnm e a i ns p na r o s ac c ountpr de hi wih a f s s ns ofs c iy,l di hi t beleve t tno f e l ur ovi d m t ale e e e urt ea ng m o i ha or c os e s l woul oc ur wihou die tcontd fom t s r pr s nt tve. H ow e r t N o m be 3, ae d c t t rc a r hi e e e a i ve , he ve r 2011 l te t t U . Balk s t M a tn t i or hi t t t r l i ns p m a ge had be e t r ha S. z ent o r i o nf m m ha he e ato hi na r en a sgne i l s i d ncudes no a s a es t tt sr r s nttve woul c a tM a tn i t e nthi s ur nc ha hi ep e e ai d ont c ri n he ve s l n modii a i a iato wa de e . Rahe ,t l t onl sa e t tt r a i hi oa fc ton pplc i n s ni d t r he eter y t t s ha he eltons p m anagerw oul ser as t sol poi of cont f accounti onnat on, a i ad s s M a tn d ve he e nt act or nf i nd t vi e ri t c l ors a e m a li he ha que tons o a l end n - i f s si . I s i doe nota a t a oft l t s t f m t bass of M a tn' faud n um, t s ppe r hat ny he eter hat or he i ri s r cli c ai f ler pr e a i . Ac or ng t M a tn,t Se e r29,2011lte 1 hi am ont n as e es nt tons c di o ri he pt mbe e tr ed m t be i ve t t by a yi f a l m odii a i a oc as ona l ca lng t c k on hi o le ha ppl ng or oan f c ton nd c i ly li o hec s a i aton' s a us he w a doi al t t w a ne s ar t Pr nt a f ec os e s l . pplc i s t t , s ng l ha s ce s y o eve or l ur a e Addii ly,M a tn beleve t the woul ha a wi tonal ri i d ha d ve ndow ofopporuniy t fx hi a ia i t t o i s pplc ton i t e nti w a de e or a l as a c nc t br ng hi l c r . W hie t s as um ptons n he ve t s ni d, t e t ha e o i s oan ur ent l he e s i ma no havebe n unr as y t e e onabl t we e uli t y i e e st tdi no c r pond t a e, hey r tma el nf r nce ha d t ores o ny s c fc r pr s nt tonsm a i t l te s f om U . Bar pe ii e e e a i de n he e t r r S. l k. Se a e y,as 1 pr ous y m e i d,a c ai f a t l f a r r t pl i if t par t l evi l ntone l m or c ua r ud equies he a ntf o al get ther le on t pur td m ir pr s nt to . I tki no a ton t mana o r par le ha ei d he pore s e e e ai ns n a ng ci o ge r e i t de i nc of hi l n, M a tn cl i s t t he r i on U . Ba l s s a e e i t he lnque y s oa r i a m ha eled S. rk' t t m nt n he Sep e be 29, 2011 l t t t i w oul not c pl t a f ec os e s l w hie hi l n tm r eter ha t d om e e or l ur a e l s oa m odii to a i ton w as bei r e e How e ,M a tn' a e fca i n pplca i ng evi w d. ver r i s m nded com pl i i de d a nt s voi ofa as e tonst the ha t m e t brng hi morg c r nti t e ntt tU. Bal ny s ri ha d he ans o i s tage ure n he ve ha S. rk de e hi a m odii a i M or ove ,M a tn does no a l ge t t as de f om t l n w or ni d m fc ton. e r ri t le ha , i r he oa kout pr a ,he w a i e esed i or c d q lf f r a ot r l s m ii ton ale na i ot r ogr m s nt r t n, oul ua iy o , ny he os t ga i t r tves he t n a f e l ur Thus M a tn has notpl d f t s ha or c os e. , ri e acs howi t t he woul ha a t d a ng ha d ve c e ny dif r n l i he ha notapple f t l n modii a i pr a ori t r had bee a l r fe e ty f d i d or he oa fc ton ogr m f he e n onge pe i oftme be wee de alofhi a i a i a t f e l ur s e ofhi home. W hie rod i t n ni s pplc ton nd he or cos e al s l M a tn' l s ofhi pr r y c r a nl r pr s nt t s r o de r m e t ta ac ualfaud ca e ri s os s ope t e t i y e e e s he o t f t i nt ha n t r us ofa on r quies he ha nota l ed f ds s di e r , s leg a howi t the woul ha ot r s be n a e t ng ha d ve he wie e bl o ke p t pr r y upon t de a ofhi a i to The ef e on t bas s oft f c s he ha e he ope t he ni l s pplca i n. r or , he i he a t s a l d,i s r t hesr a on f r M a tn t a gue t the r le on t r pr e a i ofU .S.Bank lege t te c es o ri o r ha e id he e es nt tons i isco r ponde e wih hi , i heha t whe e t lt brng hi s l ou oft a r a a n t res nc t m as f d he r wiha o i m ef t he r e r ge i o w hi h he r a l a ishe ha f l n. nt c e diy dm t d ale Bec us M a tn has i deq el a l ed r la e o f le r pr en a i ns he ha f l a e ri na uat y leg ei nc n a s e es t to , s aied t s fci nty pl d a l as t o el m e s of a a t l f a c us of ac i o uf i e l ea t e t w e nt n c ua r ud a e ton. A s s h,he ha uc s f ie t sa e a cai f a t lfaud,a U. Ba sm oton t dimi si pr pe l g a e a al d o tt l m or c ua r nd S. nk' i o s s s o ry r ntd t t ss ag hi t e. I .C ONCLISI V J ON For t f e ng r as ns U . Ba s moton t dimi s s l be gr nt d. An he or goi e o , S. nk' i o s s ha l a e a o i t o de a ompa e t sme or ndum opi on. ppr prae r r cc ni s hi m a ni The Clr oft Cour i he e die t d t s nd a c rii d c oft s m e a ek he t s r by r c e o e e tfe opy hi mor ndum o ni a t a com panyi or rt a lc pi on nd he c ng de o l ouns lofr c d. e e or Etets 1 dyfue21. nedh @ aoJn,02 r i > N O AN K.M OO UN I TED STA TES DI STY CT J DGE U 10