International Fidelity Insurance Company v. Western Virginia Water Authority, No. 7:2011cv00441 - Document 47 (W.D. Va. 2012)

Court Description: MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 6/20/2012. (ssm)
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I THE UNI N TED STATES DI STRI COURT CT FOR THE W ESTERN DI STRI OF VI NI CT RGI A ROAN OKE DI SI VI ON cteq<' OFFI U. DI CODRT - s CE S. ST. ATRCANOKE, VA FIED L Jkd 22 2 1 22 J ! . ULA I NTERN A TI A L FI ELI I SUR AN CE ON D TY N COM PAN Y, . B Y: Pl i if a ntf Ci lA c i N o.7: 1 c 00441 vi ton 1 - v- W ESTEM VI NI W ATER AUTHORI RGI A TY, Def nda / r pa t Pl ntf e ntThid- ry ai if M EM O R AN D UM O PI I N ON FI ST STA TE BA N K R By: Hon. l n E. Ge Conr d a Chi fU nied St esD i ti tJ e e t at s rc udg a nd CARNELL CON STRUCTI CORPOM TI , ON ON Thid- ry Def nda s r pa t e nt . Thi c s a i e o oft c r t lr a i ns psbe w e f s pa a e en ii sw ho s a e r s s ut he ontac ua el to hi t en our e r t tte we ealn ov di ac nsr cinp oe ta teF ln Cre Da i Be fr Co ny r 1 iv le n o tu to rj c th al g e k m n d od u t , i Vigna I e s n e tec n t cinp oe tsg nea c nr co fi dt pa o o is r ii. n se c ,h o snzto rj c' e rl o ta tr al o y ne f t e s nta t r ,t r by ti rngiss e y' dut t pa t s on r t r whi h,i t n, ubco r c o s he e rgge i t ur t s y o y he ubc tac o , c n ur r s t d i t i un a y as i nm e t t s et oft ge r lco r c or s i er s i a e ule n he nvol t r s g nt o he ur y he ne a nt a t ' nt e t n n e cr ac ount Thi i un a y as i e e il d t s e y t r ce ve t unpai ba anc on s ow c , s nvol t r s gnm nt ntte he ur t o e i he d l e t ec mp ee prj c.Ho v r tes rt wa n v rp i t ef l a u ti wa o da d i h o ltd o e t we e,h u ey s e e ad h u l mo n t s we n ,n t n,s t e iy t tr ei d t c t uc i s r i sa t tw a oblga e t pa f ur ued he ntt ha ec ve he ons r ton e v ce nd ha s i t d o y or t o esr c su o teprj c ' c mpein.Th te t y i tr , ie at id p ryc mpan, h s evie p n h oe ts o lto a ni ,n u n fld hr - a t o lit t br ngi i o t case t generalcont act and t bank actng ases ow agent Bef e t i ng nt he he r or he i cr . or he courtnow ar t es ow agents m oton t di i spurs e he cr ' i o sm s uantt Feder Rul ofCi lPr o al e vi ocedur e 1 ( )6 a dmo inf rs mmayj d me t u s a t oF d r l l o Cii Pr c d r 5 2 b ( ) n to o u r u g n p ru n t e e a Ru e f v l o e u e 6. Alobef r t co ti t t r pa t pl ntf smoto t de ort def c i r ton oft s o e he ur s he hid- ry ai if i n o ny o er onsde a i he s mma yj d me t to p ru n t Fe ea Rueo Cii P o e u e5 d .Fo t r a o u r u g n moi n u s a t o d rl l f vl r c d r 6() r he e s ns st o t beo t ec ur wil rn i pat n d n i p r t emoinf rs mmayj d me t e f rh lw,h o t l g a tn r a d e y n a th to o u r u g n a t moto t dimis a wilgrrtt Rul 56( moton. nd he in o s s, nd l al he e d) i Fact and ProceduralBackzround ual I enai Fi iyl urnc Compa ($FI ',hepli ifi t sa ton,i as ey ntr tonal delt ns a e ny t C' t antf n hi ci s urt I ) c ompa or ni d undert l wsofN e J r e wih apl c ofbusnes i Ne r Ne ny ga ze he a w e sy t ae i s n wa k, w J re ( ke No.1a 1) W ese nVigni W ae Aut iy(iheAut iy' t dee nt e sy. Doc t t. tr r i a tr hort s t hort ),he fnda a t r pa t pl i ifi t sa ton, sa i o po a e publc s r c a hor t or ni d unde nd hid- ry a ntf n hi c i i n nc r r t d i e vi e ut iy ga ze r Vign aCo ej1 .- 0 e s q, t isp icp l lc o b sn s i Ro n k , r ii. r ii d 52 51 0 t e .wih t rn ia pa e f u ie s n a o e Vigna ( ke No. a 2. rtStt Ba (t rtStt',o oft t r pa t dee nt,i a Doc t 21 t )Fis ae nk s s ae' ne he hid- ry fnda s s Fi ) ba ng c po ai o ga ze unde t lwsofVigi awih isprncpalpl c ofbusne si nki or r ton r ni d r he a r ni t t i i ae i s n Da le Vigi a (d. CanelConsr ci Coporton(û m e1',t ohe t r pat nvil, r ni. I ) r l tu ton r ai t Ca l' he t r hid- ry ) de e nt i a co por i n or ni d unde t l w sofV i gi a w ih isprnc pa pl ce of f nda , s r ato ga ze r he a r ni t t i i l a busne si Ma tns le, r ni (d. i s n ri vil Vigi a. l ) Acc di t t A u hort sa e d t r pm y c pl i ,t A ut iy e e e i o a or ng o he t iy' m nde hidom a nt he hort nt r d nt c r c wih Car l Cconta f' onM a 4, onta t t nel rc ) y 2009f c tuci a gr ngwor ont or onsr ton nd adi k he Faln Cr e Da Re v to (ù oe f' ( za 3) Th Co ta to iae teAuhoiyt lig e k m no ain û j c ) J . t . e nr c blg ts h t rt o pr .# p yt Ca lt erman n c nr c b ln eu o c mp ein o t ePrj c.TheAuho i , a o mel h e ii g o ta t aa c p n o lto f h oe t t rt y Canel a Fis Stt as e ee it a esr a ee nt(i c o Agre nf' wih r l, nd rt ae lo ntrd no n cow gr me d r w e me ) t Es rs e t ot eCo ta t (d. I C sg e teEs r w Ag e me ta s r t frCan l.(i) ep c t h nr c. l ) FI in d h co r e n s u ey o r el L The Es ow A greem entpr dest t Aut iy f om tm e t tm e woul pay i o t es ow cr ovi hat he hort r i o i d nt he cr ac c ounta ount i ha r t i unde t Contac ,a t tFis St t a t e cr a n , m s t d e a ned r he r t nd ha r t a e, s he s ow ge t woul pa a t die ton oft A u hort t prnc paloft es r ac ount o a s cii d y t he r c i he t iy he i i he c ow c , r ny pe ted a u t t ee f t t Auh rt o t Can l (d; k tNo 4 1 Ex. ) M o es e iial, mo n s h ro ,o he to iy r o r el I .Doc e . - , B. r p cfc ly . t Es r A gr e e pr des he c ow e m nt ovi : Pa me ss d be ma t Fis Stt Ba a mald t P. Box 6 0g1 y nt houl de o rt ae nk nd ie o O. 40 , D mw il ,V a.245 6400.. .. U pon r c ptof c c dr w n by t Aut iy le 43e ei he ks a he hort a d ma e p y bl t Fis Sae a e co a e t g rtS ae s alp o ty n d a a e o rt tt) s sr w g n , Fis tt) h l r mp l notf g r ll ne it t sme a de i or i s a ri s t iy canel, gotae he a nd post nve t nd envet he pr e ds i a ove s c iis i a o da e wih t wrte i tu tons o oc e n ppr d e urte n cc r nc t he itn nsr c i f g r el. can ll ( ke No. 1 Ex. ) Doc t 4- , B. The A ut iy a l est ti pa d a fve pe c tr t na mnounti t es r ac ount hort leg ha t i i r en e ai ge n he c ow c e c tm e Ca ne ls it d a pa e r ques , e uli i a t t lba a e i t e c ow a ou ah i r l ubm te ym nt e t r s tng n o a l nc n he s r cc nt of$85, 33. Howe r i a a st t un knowns t t Aut iy,Fis Stt di not 823. ve , t ppe r ha , be t o he hort r t a e d e tbihtee c o a c u t Fis S aea srs a dt eAuh rt d e n t o t s ( c e No sa ls h s rw c o n . rt tt se t, n h to iy o s o c ne t Do k t . 35a 2 ,ha t onl r e ntc kst ti rceve fom t Aut iyweema pa et t ) t t he y elva hec ha t e i d r he hort r de yabl o t r lConsr ci Cor ai ' ( ke No.25- . Thec kswe es ntt û r l d nel ca tu ton porton. Doc t ' 1) hec r e o d nel ca Cons r to Co po a i c o Fis St t Ba ' tt a e sf r Fis St t pr vi d i t t uc i n r r ton / r t a e nk' a he ddr s o r t a e o de n he Es r Agre nt ( ke No. a 2;Do ke Nos 35- ,35- 35- ) Ata dt ea h cow e me . Doc t 35 t c t . 1 2, 3. tche o c c c wa ac c sub t tpr de i or ton a he k s he k t ha ovi d nf ma i boutt pa nt The ç s rpton'pori n he yme . k c i i ' to de oft c c s ubs i l d t wor ke cr ' C e a nage ' s e ve s on oft w or he he k t nc ude he d d s ow' or t t i ' or om r ri he d Gean.'( ke Nos 35 1,352,35- ) Fis Stt di notr ei fom t Auhort a l ti ' Doc t . - r 3. rt ae d ec ve r he t iy ny c c m ade pa bl t Fi s St t a es o a t i ot rw or , ne oft che ks t t he ks ya e o r t a e s cr w gen - n he ds no he c ha Fis St t r e ved f om t Aut iy s ts i d t t r soft Es r A g e m en . W he Fis r t a e ec i r he hort a i f e he e m he c ow r e t n rt Stt r c i t ec c fom t Aut rt Fis St t de ie t m i o t s pa ae ae e eved hes he ks r he ho iy, rt ae post d he nt he e r t b i s s ngs a c usnes avi c ountofCa nel,w hi h ha bee a l tm e ba ng c t e ofFi s St t . r l c d n ong-i nki us om r rt ae ( ke No. 1a 3. Doc t 25- t ) OnJ 1 2011 Cnnelc ee t Prj t ( ke No. 1a 4. Acc di t t une 4, , r l ompltd he oec. Doc t 2 t ) or ng o he ame dt r pat co ant I C (nisr ea s ey f Canel r c ve a pada nde hid- ry mpli ,FI i t ol s urt or r l) e ei d nd i 3 p y n b n cam fo o eo Can l' s bc nrco s (d) Ac o dngt a i d mnt a me t o d li r m n f r els u o ta tr . I . c r i o n n e iy a e m e tbewee I C a Ca nel, r l' f iur t ma pa gr e n t n FI nd r l Ca nels a l e o ke ymen t iss on r c or t o t ubc ta t r s t d i t a s gnm e t I C ofa 1ofCa ne l srght t n,a gr i i any m am e out e ule n he s i nt o FI l r l' i s d nd ow ng n i l r of a lconta t r f r e t i t Bonds ori orgr i i a m a t outoft Bo . ,1 r c s e e r d o n he , n, ow ng n ny ter he nds' ' ( c tNo.14 a 3. Ba e o t i iv ln ayasg me t' FI a g e i isc mp an t a i Do ke - t ) s d n hs n ou tr sin n , I C r u s n t o lit h t t i t pr rpa t t r cevet outt ndi ba a eof$85,8 33 u de t Co ta 2 ( o , s he ope ry o e i he sa ng l nc ket 2 .3 n r he nrd. o c No.1. Ac or ngl I C c acedt Aut iyt rquett tt Aut iypa t ) c di y, FI ont t he hort o e s ha he hort y he rmann c nr c b lnc d eo t ePrj c drcl t I I ( c e No 21a 4. Th n t e e iig o ta t aa e u n h oe t ie ty o F C. Do k t . t ) e ,h Aut iy a s Car l i aJ ne 1 2011lte t ti ha r ceved as oga i ca m fom hort dvied ne l n u 4, et r ha t d e i ubr ton li r I C, x an n t Can lt a i itn e t p yterman n b ln ed o teP oe to FI e plii g o r el h tt n e d d o a h e ii g aa c ue n h rj c t I C (ncl ngt $85, 33s ppos y benghedi esr .(d. Caneli c tdis FI i udi he 823. u edl i l n cow) 1 ) r l ndiae t a e m e w ih t spr gr e nt t hi opos lby s gni a r t ni t t A ut iy a copy oft J 1 a i ng nd e ur ng o he hort he une 4 lte.(d.Doc tNo. 1 Ex.A. etr I ; ke 4- , ) Ther a t r o J y 27,t Aut iy die t d Fis St t t r l a e t I C t f ndst t e f e , n ul he hort r c e r t a e o e e s o FI he u ha t Auhort beleve weebenghedi t esr a c .( ke No. a 4;Doc tNo. he t iy i d r i l n he cow c ount Doc t 21 t ke 4- , C. Howeve,Fis Stt di not a i e c dno,c ywiht sdie ton, 1 Ex. ) r rt ae d , nd nde d oul t ompl t hi rci i s uc asi i undi put t t u n r e vi t c c ,Fis St t pl e t c ks na m h t s s ed ha , po ec i ng he he ks r t a e ac d he hec die tyi oCanelsspa aea c wiho frtesa ihi a esr a ount ( ke rcl nt r l' e r t c ount t ut is tbls ng n cow cc . Doc t No, a 4. Afe islte t Fis Stt die tngt rla eoft e cow f t I C a 21 t ) tr t etr o rt ae rci he ee s he s r unds o FI nd a t rFis St t ' alege r us t r e s t e c o f fe r t a e s l d ef al o el a e he s r w unds t Aut iy i s d a c k t , he hort s ue hec o i The Es r Agr e entpr vi t tCa ne lwoul notas i is i e e ti t es r ac ntexc ptt c ow em o des ha r l d sgn t nt r s n he c ow cou e o II i szey ( c e No. - , . ) F C,t l t. Do k t 4 1 Ex B. s r 2 I a tont isr inc ont conta m ala sg e a abasso whiht dem a pa e fom t n ddii o t ela e he rc s inm nt s i n c o nd ym nt r he Aut iy,I C no e i iscompli t e se eofas pa aec r ct r ai hi bewee I C a t hort FI t s n t ant he xitnc e r t onta ual eltons p t n FI nd he Auh rt aiigo to albo a dmaeil a me t o d(Bo d'ta I C is e o be afo Can l ( c e toi rsn u f a r n tra p y n b n < n ' h tFI su d n h l f r el Do k t y ç ) . No. - )Th Auh rt i a dto t I C a dCa l wa as apat t teBo d. 13. e toi n d i n o FI n mel s lo r. o h n y, i , y 4 I C i ten u to $ 38 59 ,e v n t ermann b ln ed o teP oe ta FI n h mo n f 3 ,6 .8 la i g h e iig aa c ue n h rj c t $85,23. t a 8 33,he mountt tipadit t esr a c .(d. ha t i no he cow c ount I ) On Se e be 1 2011,I C fl d is c pl nt s e ng t r c rf om t Aut rt pt m r 4, FI ie t om ai , e ki o e ove r he ho iy tet adb ln eo t Prj c.( c e No 1)Th ra tr o Oco e 2 , 01 ,h h mp i aa c n he oe t Do k t . . ee f , n tb r 6 2 1 t e e Aut iyfldat r pa t c ant( ke No. a onDe e r29, 1, name d hort ie hid- ry ompli Doc t 6) nd c mbe 201 a nde t r pa t c hid- ry ompl i ,s ki t hol bo h Fis St t a Canellabl ast r pa t ant ee ng o d t rt ae nd r l i e hid- ry d fn a t f rt u p i b lnc o t P o e t ( c e No 21) Th Au h rt b igssx ee d n s o he n ad aa e n he rj c. Do k t . . e t o i rn i y c us s ofa ton i is a e d t r pa t c pl nt a c m on l i m nii a i cl i a e c i n t m nde hid- r y om ai - om aw nde fc ton a m a i tFis S a ea Car l,abr c ofc ta tc am ag ns Fis Stt abr c of gans rt t t nd ne l ea h on r c l i ai t rt a e, ea h fd cayd t cam a ans FrtSae a u j t nih n cam a ans Fis Sae asp rt i u ir u y li g i t is tt , n nus e rc me t li g i t rt tt, e aae u j s e c me t li a an t r ela dad caao yrle cam. nu t mi h n cam g is Can l, n e lrt r eif li OnJ nuay 11 201 Fis Stt fldaRul 1 b)6)motont dimist a a r , 2, rt ae ie e 2( ( i o s s he mend ed t r pa t c pl nt ar ui t tisdut ases r a ntw a nott i r be a e i di not hid- r y om ai , g ng ha t y c ow ge s r gge ed c us t d r c i f om t A ut iy c c m a pa bl t Fi s St t ases r age , r qui e by e e ve r he hort he ks de ya e o r t a e c ow nt as e r d t Es r Agee nt ( ke No. )The e he , Fe uay6,201 Fis Stt flda he cow r me . Doc t 25. r a r on br r 2, rt ae ie moinf rs mmayj d me t a e o t smec ne to a v n e i ismo int d s s. to o u r u g n b sd n he a o tn in d a c d n t to o imis ( ke No. ) TheAuhort t nfldonFe nzr 21, 2amotonpu s ntt Rul Doc t 30. t iy he ie b a y 201 i rua o e 5 () rq e tn ta tec u t i e d n t emo infrs mma yj d me to d f r 6 d ,e u sig h t h o r et r e y h to o u r u g n r e e h c i rto o t moi t al t pa te t enga i dic y.( ke No. ) onsdeain f he ton o low he ris o ge n sover Doc t 33. The c r hea d a gum enton t m otonson Apr l9,2 2. A tt he r ng,t A ut iy ou t r r he i i 01 he a i he hort r ue t d t tt cou tpe m i t pa te t e ge i di c r on t i s ofwhe he Fis eq s e ha he r r t he r i s o nga n s ove y he s ue t r rt St e knew or s d have know n t any checksr ved f om t A ut iy w er i ended t at houl hat ecei r he hort e nt o be hel i escr and whet Fis St eknew orshoul have know n t i w asoblgat t dn ow her r t at d hat t i ed o esa i h a e c ow a ounta t ti ha a fduc a y du y t pl c t A ut iy' pa e s t bls n s r cc nd ha t d i i r t o a e he hort s ym nt i t t te c ow ac ount The c tt n i s d a o de di e tng bo h t A u hort a Fis n o ha s r c . our he s ue n r r r c i t he t iy nd r t Stt t S iebre sa es i Vigi a1w on t is ofwhehe Fis St t Ba sd y a ae o s l if ddr sng r ni a f he s ue t r r t ae nk' ut s e c o ag tunde t Es r w Agr e e tco dbeti r d by c tuci notc t tt s r w en r he c o e m n ul rgge e onsr tve i e ha he c c dr w n by W ese n V igi a W a e Aut r t m a paya e t Ca ne lCo tuc i he ks a t r r ni t r ho iy, de bl o r l nsr ton Coporton,a maldt Fis Stt Ban weei e dt beplce i es rw. ( ke No. r ai nd ie o rt ae k r ntnde o a d n co ' Doc t ' 4 . Afe c n iei t b if tldb b t p risa dtea pl a l c s lw,h c u t 3) tr o sd rng he res ie y oh a t n h p i b e a e a te o r e c c n ld sa amatro 1w t a FrtSaei e t ldt s mmayj d me to t eAuh rt s o cu e s te f a h t is tt s n ie o u r u g n n h t o i t y' Sc t uc i no i ' t or ofr ove y. The c t ilpe tt Aut iy t e ge i ' ons r tve tce ' he y ec r our w l nni he hort o nga n di co r i s s ve y n uppor ofisGa t notc ' a g e . t t i c ual i e ' r um nt I1. D i si scus on A. Standard ofR evi w e I c n ie igamoinf rs mma yj d me t u d rFe ea Rueo Cii P o e ue n o sd rn to o u r u g n3 n e d r l l f vl r c d r 5 C hec t sr r t vi t f c sa dr w r a ona e i e e si a lghtm os 6,' our i equied o ew he a t nd a e s bl nf r nce n i t t fvoa et t nonmo ngpa t ' Sha v. r 1 F. 791 798( hCi.1 4) Thec r a rbl o he vi ry. w Stoud, 3 3d , 4t r 99 . ' ou t ma g a t umma yj d me t nywh n, iwi t erc r a awh l a di t elg tmo t y rn s r u g n o l e ve ng h e o d s oe n n h i h s f vo a e t t nonm ovi pa t t r i no ge ne i s ofm a e i lf c a t nonm ovi a r bl o he ng ry, he e s nui s ue t r a a t nd he ng p ryi e tte t j d me t sama tro lw.Ceo e Co p v. tet 4 7U. 31 , 2 -2 a t s nild o u g n a t fa e ltx r . Cart, 7 S. 7 3 2 4 (1 6) Ter sFl Fa hins I v. lngonl .l .763F.d 604,61 ( hCi.1 . 98 * rv' oor s o . nc. Buri t nduss nc, , 2 0 4t r 985) Forapa t se de et rieage neis ofmaei fc t ta dss ry' vi nc o as nui sue tral a t ha voi ummayj r udgme , nt tee ie c mu t eç u hta ar ao a ej r c udrt r av r it o t en n vng h vd n e s b d c h t e s n bl u y o l eu n ed c f r h o mo i s pa t ' Andes v. be t LobbvsI ,477U. 24 248( 986) ry. ' ron Li ry nc. S. 2, 1 . 3 Bec us bot t Aut iyand Fis St epr s ntd ma ei so sdet pl di , Fis St t sm o i t a e h he hort rt at e e e t ral uti he ea ngs r t a e' ton o ds s mutb tetda amoinfrs mmayj d me t Fe R. v P. 2 d.Ass c tec ut s c n ie imis s e rae s to o u r u g n. d. Ci. l ( ) u h,h o r mut o sd r temoint ds s u d rt smesa d r ta a pl st amoinfrs mmayj g n. h t o imis n e he a tn ad h t p i o to o u r ud me t o e 6 B. A nal i ys s 1. C o t uc i no i e ns r tve t c a. Breach of cont ractcl m ai A s sa e a t t d bove t A ut r t a l gest tFi s St t br ac d t Es r A g e m e by , he ho iy le ha r t a e e he he c ow r e nt f ii t e t bls a e c ow a cou ,f ii t plcet f a lng o sa ih n s r c nt alng o a he undsr ceve fom t Aut iy i o e i d r he hort nt t tes r a co ,a de ii t f ndsi t a i o Ca el' s pa a eac ount ha c ow c unt nd postng he u nse d nt m ls e r t c . igl a esr arnge ntt pa te o u aprncpa- ge r ai hi a ûln n c ow ra me ,he ris cc py i i la nt eltons p, r a i ns p w hi i e s t a l con r c ua i na ur .'W i l w s nc. Sca f 25 S. 2d 58, el to hi ch s s en i ly t a t l n t e ' ns o l v. ie, 4 E. 60( 1 .Theco rcua duyofa esr a nti naw wl defne byt tnnsoft Va. 979) nta t l t n cow ge s l y i d he e he Jur esr a e me . Se 28 A m . 2dEs r j22( 966 (C dut ofa e cow a nt cow gre nt4 e cow 1 )$ The y n s r ge . i .... i ie t co pla e w ih t pa tes i t uc i . l ot r wor ,t e c ow a n ' s lm t d o m i nc t he r i ' ns r tons n he ds he s r ge t s dut i lmie byt t r soft e c ow a r e e t t e c oweeowe adut t a to y i y s i t d he e m he s r g e m n 'he s r , s y o c nl n ac or nc wiht ecr i tuci . (o noe omitdl;3 C.. Es rwsj1 ( 0 c da e t he s ow nsr tons' fot ts te ) 0A JS. co ' 7 201 ) (1 e cow a ntsdutesaesrcl lmie t t estfrhi t a ee t Theage y ( s r ge ' i r tity i td o hos e o t n he gr men. An nc cr t dby a e c ow i lm ie t t oblga i oft es r hol rt c ry outt i tuc i ea e n s r s i t d o he i ton he c ow de o a r he nsr tons ofe h oft pari t t es r .... The e c o ag ntowest pa te a dut t c r y out ac he tes o he c ow s rw e he r i s y o ar t tr oft a e me a i ende b t pa te .'f t eomi e ) s as Da sv. he ems he gre nt s nt d y he ris'(oonot t dl; ee lo vi l Holtn, S. 2d 1 ,1 se 621 E. 01 04-05( .2005)(t i t ta e cow a ee nti ac rc,he Va satng ha n s r gr me s onta tt tr ofwhihmus besrcl consr d) ems c t tity tue . 4 Th c u t oe t th lwso oh ru idito saet tes meefc.Se . ..Do el . i Na' e o rn tsha te a f te jrs cin r o h a fe t e ea, n lv Fd. tl Til Ag n vof v. n .No 2 0 - 0 0 IKJ 201 W L 1 6 4 l a * ( Ne M a 1 , 01 )( 1 a t e c Ne .l c, . : 7 CV- 0 0 - D, 2 e 6 9 2 , t 4 D. v. y 1 2 2 < n n < eco ta scin t eeco isrcinsc nrlh p ris rg t a dd fn teeco a e tsd t s'; sr w rn ato ,h sr w n tu t o to te at 'ihs n eie h sr w g n ' ui .l o e e ' Sc o p v Zin FisNa'Ba k 7 0F. u p.1 4, 0 8( Uth1 90 (ç heso eo tee co a e ts h e e . o s rt tl n , 5 S p 08 1 8 D. a 9 ) iT) c p fh srw g n' ( d t i g v r e b t ee c o a r e n . .' ; ra v Eb r a tr 5 lA.d 4 4 4 9 ( . u e . . 98 ) uy s o e n d y h s r w g e me t . .) Cu rn . eh re, 2 2 7 , 7 Pa S p r Ct l 7 ' ( ( n e co a e t sb u d t f lw t etnnso t ee c o a re n . . Fu t e ,hepo r o a e co ( A1 s r w g n i o n o ol h e t o f h s r w g e me t . . rh r t wes f n s r w a e taeI tdt t o ee u r td i t ee c o a r e n .) Pi nv Ke n W ad Bl z Co.4 6N. 2 1 5 g n r i e o h s n me ae n h s r w g e me t' ; r . r - r d . , 5 E.d 23 , mi ' mi 1 3 ( oCtAp .1 8 )C-h d t o tee co a e ti teeoece r t cryo thetr o te 2 7 Ohi . p 9 2 ç-e uy fh srw g n sh rfr la o ar u t ems f h l a re n a itn e b tep ris' . ge me t s ne d d y h a t .) e ' Be a ean e c ow a e m e c e t sap i i la ntr ltons p, rai fducir c us s r gr e nt r a e rncpa - ge ea i hi ce t n i a y dute t tnor aly ac om pa prnci l a ntr l tons ps a s a y wihi t c e of i s ha m l c ny i pa - ge e a i hi l o ppl t n he ont xt e cow arnge ns Se Rosmam v. z r s No.1: c 6(CC) 2008W L 46 3, t s r ra me t. e s r La a u , 08 v31 J , 4221 a * ( D. Oc.1 2008)( i t tVigi alw rc ze atducir r ai hi bewe n 7 E. Va. t 5, notng ha r ni a e ogni s i ay eltons p t e a a nta prnci l.Mor s ciial a e cow ag ntowest isprncpal afducay n ge nd i pa) e pe fc ly, n s r e o t i i s i ir du y t e ut isc r c ua o i tonswih t c u o hone t s l,a dii e e. Se t o xec e t onta t l blga i t i r pul us s sy, kil nd lg nc ' e ' 30A C. S. c ows s a j1 Ctti anecr de iay' dut t e r ieras na es l J. Esr , upr, 7 l s ( s ow) postr s y o xe cs e o bl kil a or na y dii nc ,and due c r i hi orhe e pl ym e . I t s fduc a y c pac t t nd di r lge e ae n s r m o nt n hi i i r a iy, he de ia y m us conduc t af a r wih whi h he ors i e t us e w ih s upul ho s y, pos t r t t he f is t c he s n r t d t cr ous ne t s l, n dl e e'(o t oe o te l; 8Am. l . dEs r w, u r , 23(Es r w ki a d ii nc - fo n ts mitdl 2 l g ' Jz 2 co s p a j s co r d a nt .. owe afducir dut ... o pe f m t rr s nsbiii wih s r o honesy, ge s . i a y y t ror hei e po i ltes t c upulus t r s ea onabl s l,a or na y dii nc ... H ow e r t fduci r r a i hi ofa es r e kil nd di r lge e. ve , he i a y el tons p n c ow a ntand t o herpa te t t a e m e i m uc na r e i s ope t n o he fduci r ge he t ri s o he gr e nt s h r ow r n c ha t r i a y r ltons pss hasat ne a cint';s ealoH- Lt P'hi v.W i r 25 S. 2d eai hi uc tor y nd le .l e s B d. s p ' mme , 7 E. 770,773( 1 (W na i afd aywihr pe tt t matr wihi t sopeofhi Va. 979) ( gent s iucir t es c o he tes t n he c s age y. A sduc a y r l tons p e ss i a1 c eswhe s c a c i nc hasbe r ed i nc i r e a i hi xi t n 1 as n pe i l onfde e en epos n one who i eq t and good c cenc i boundt a ti g f t a wih duer ga d f t n uiy ons i e s o c n ood aih nd t e r or he itr t oft onerposngt c i e.) Resae nt( r ofAgenc j8. ( ) neess he e i he ontdenc ' ; ttme Thid) ' y 07 2006 ($ a ntha adut t a ti ac or ncewiht e es a i idtr ofanyconta t çAn ge s y o c n c da t he xpr s nd mple ems rc b t e t ea e t ndt ep i ia.l i . 80 (du jc t a ya r e n wi tep icpa, ewe n h g n a h rncp l';d j .8 ' be t o n g e me t t h rn i l ' s h a ag ntha a dut t t pr nc palt a w ih t c r ,c pe e ,a dii nc nor aly n e s y o he i i o ct t he a e om t nce nd lge e m l e r s dbya nt i smia cic tnc s'. xecie ge s n i lr rumsa e .) ' l t i tntc e,heEsr Ag e me ( c byiso lnguag Cet f t t n he nsa as t cow r e nt whih, t wn a e,t s orh he s tr oft ecrw' ceal pr de t tFis Stt' dut t de i c c i oe cow wa ems he s o ' l ry ovi s ha rt aes y o post he ks nt s r ) s 8 ti g rdo l S upo r c it fc c sd a b teAuh rt a dma ep y bet ia rg ee ny s l n e ep o he k r wn y h to iy n d a a l o t s r e co a e t' ( c d No. - , B (mp ssa d d . Assae a o e t eAuh rt d e s r w c n . Do k ' 4 1 Ex. e ha i d e l) ttd b v ,h t o i o s y notc e tt tFis St t di notr evec c t twe e ma pa bl t Fis St t ases r ont s ha rt ae d ec i he ks ha r de ya e o r t ae c ow a t I t a t c kswer ma pa bl t Ca nel nce bec us Fis Stt sd i a gen . nse d, he hec e de ya e o r l.He , a e r t a e' utes s e c ow a ntwe ede i byt t r oft Es r Agr e e , be us Fis St t di s r ge r fned he e ms he c ow e m nt and ca e rt ae d notr cevec c t tcomple wih t et m s Fis St t sdutesa es r a ntwe enot e i he ks ha i d t hos er , r t ae' i s c ow ge r ti er byr c i toft c ks ba rng a a t lnotc by Fis St t oft Aut rt s rgg ed e ep he hec , ri ny c ua i e rt a e he ho iy' m it s ake. N ot ihs a ng t t nns oft Es r A gr e e t w hi h i a s t d,t Aut iy w t t ndi he e he c ow e m nt o c t s en e he hort none hel s a guest tFi s St t s d have kno n t tt c ks we e i t nde t bepl ce t es r ha r t a e houl w ha he hec r ne d o a d i e c ow.Ac r ng t t Aut iy,Fis Stt wa co tu tvel notfe t tt c c n sr co di o he hort r t a e s nsr c i y iid ha he he ks weei e r nt nded f rt es r w ac ountbas upon t f tt t c c w e e m a l d t Ca ne l o he c o c ed he ac hat he he ks r ie o r l k / Fis St t Bal 'a t a r sf Fis Stt s c te i t Es r Ag ee ta ba e d o r t a e rk' t he dd es or rt a e pe ii d n he c ow r men nd s d c upo t f c t tt c c f t e s ubs wih e c o -orr t i ge- e a e wor . How e r n he a t ha he he ks ea ur d t t s rw e a na r l t d ds ve , t ca est w hi h t A ut iy c t s i s ppo toft s a gum e s a f t pr poston t ta he s o c he hort ie n u r hi r nt t nd or he o ii ha bankm a bepl edon consr tvenotc offa e c nd .Se Fis Am .Ba ofVa. y ac tuci i e r udulnt o uct e r t nk v. Dol 763F. 644,650( hCi.1 ) Co yM a GeoreCo . O1 23F. 8 81 (t e, 2d 4t r 985 ; r nn c p v. d, 2d 03, 0 4h Ci.1 28 ;W . Cha e& Co.v. f kNa' Ba ofCommec & Tr t,1 S. 725,728 r 9 ) L. s Norol tl nk re uss 45 E. ( 1 .TheAut iyis l a r t tt i tn c eivol snoalgai offa Va. 928) hort tef ve s ha he nsa t as n ve le tons rud. ( cke No.46a 4. He ,t c tbele t tt c escie byt Aut iyfi t Do t t ) nce he our ives ha he as td he hort alo i or on t i s ofwhe he V igi a l pe t a ba s c r t ldute a es r ag nt nf m he s ue t r r ni aw nuis nk' ontac ua i s s c ow e t be actvat by consr i notce t checksnoti com plance w ih an es o i ed tuctve i hat n i t crow cont ract wer nonet essi ended f escr . e hel nt or ow 9 Furhe mor t Aut rt sc tuc i no ie a gume i unde m i d by t l l t t t r e, he ho iy' onsr tve tc r nt s r ne he ' e ha , u ge r ly, hel doesnoti ne al t aw mpos a dut on afna i li tt i t makei r a t e y i nc a nsiuton o nquiy s o not to m a on i tum e t r c ve by t ti tt ton.Se 5A Rona d A . nde s n, a i ns de ns r n s e ei d ha ns iu i e l A ro Andes o t Unior CommecalCodej3- 05: ( ed.1 )(iM lmo a onc c ron n he f m ri 1 31 3d 998 sg e r nda he ks des r bi t f c i ng he undsa t s c f om w hi t y c e, t pa e i e nd he our e r ch he om or he ym nt nt nded b t y he che ks dono a ta notfc tonst abn orot rpe s r cevi pa ng, c s ng s h c , t c s ii a i o nk he ron e i ng, yi or a hi uc che ks ofa fcswhihi i bo t i si t ' s as Stt Na 'BankofSprncil c , ny a t c t s und o nve tgae. ee lo ae tl ); i fed v. Dodce 1 U. 333,346( )(t ba i boundt tkenotc ofme a a fg e , 24 S. 1888 t No nk s oa ie mornda nd iur s upon t m a gi ofac k,whih ade iorplc t r me el f hi own c he r n hec c post a es he e r y or s onve e e, o ni nc t pr e vei o m ai f hi own be ft a i s h c s ,t m e o a a fgur a enota es r nf r ton or s ne i; nd n uc a e he m r nda nd i es z notc t t ba t tt pa tc a c cki t bepadonl fom apa tc a f '(mphass ie o he nk ha he riulr he s o i yr riulr und.'e i omit l; tdSttse r .W esi us Elc. . Somme Co p.580F. 1 1 ted) Unie ae x el tngho e e Com v. r r, 2d 79, 84 ( hCi.1 78 (1 genea r ei t taba uponwhihac ki drwni notboundby 5t r 9 ) $The rl ul s ha nk c hec s a s nottonsorme o a upo t ma gi ofac c s h nottonsbeng c i r d a me ey ai m r nda n he r n he k, uc ai i onsde e s r l f t c nve enc oft drwe .) Stt Na' Ba v.Rely,1 N. 657,661(1.1 7)(tt or he o ni e he a r' ; ae tl nk ' il 4 E. 11 88 i l i w e lkno n ... ha ... hepr c i e n ong ba t , yi c c oft i de ior , snott s l w t t t a tc m rks pa ng he ks he r post s i o obs r m e or nda upon s h che ks butt c t i t r ga d t m a ha ng bee m a f e ve m a uc c ' he us om s o e r he s vi , n de or t c he onve e oft dr w e s a t pr c i e i t tr ga d,i i t ni nce he a r , nd he a tc n ha e r t s hought ha t s nc i o , s he a ton f te1w i i s p r. (mp a i o te l; pn z o av M fs Na 'Ba k o Der i, 8 h a n t u po t'e h ss mitdl S ia z l . r. tl n f tot 1 4 s ' N. .d26 , 6( ih. . p.1 7 )( eemii gt a ac e kma ep y bet d n a n W 2 5 26 M c Ct Ap 9 0 d tr n n h t h c d a a l o i j mi Be Ba zz ' a f a urng a no a i i t u rl f c r rr a ng (To be hel i e c ow' di no go i' nd e t i t ton n he ppe e t o ne e di ( d n sr ' d t plc t ba onnotc no t c s t c k) Fis Na' Ba ofDul h v.Sc DitNo.1 a e he nk ie t o a h he hec ; rt tl nk ut h. s. 5 ofCa lonCnt ,21 N. .36 3 t i 1 )(ttngt tnoai onac kdi not rt v. 7 W 6, 67 M nn. 928 sai ha ttons hec d Ebll (heba ori a wa afc l isrg s' dt tlgl hnoai o ac c as t ind t nkj n ny y fe tq t iht'an ha tsuc ttons n he k, 10 bewe ndrwe anddrwe o rt onl t s r t c nve e oft drwe' Fr tNa' t e a r a e, peae y o eve he o nince he a rl; os tl Ba kv Nih ls& Barr , 3 S. .d9 7, 3 -3 ( x. v. p. 9 6 (iign me o n . c oa rea 5 4 W 2 2 9 4 5 Te Ci Ap 1 7 ) ctn u r us a hortesf t pr ut ii or he oposton t tb nksge r ly be rno oblga i t i es i t not tons o ii ha a ne a l a i ton o nv tga e a i n c ks be us s not i a epr s dt bef t co ninc oft drwe) hec , ca e uch atons r eume o or he nve e e he a r. The po e oft sprnci e i no diut d by t f c t tFi s St t f to i t t ncy hi i pl s t l e he a t ha r t a e unc i ned n he i tntc s a a es r age .l f ct t Es ow Ag ee ntlndsadd f c t t r l i nsa a e s n c ow nt n a , he cr r me e ed or e o he ue n t sc e t Es r Ag e mentpr dest ttFis Sttls lnotbede me apa t t hi as- he cow r e ovi ha ' rt ae hal e d ry o, bo by, r qui e t i r i o t t r sof t co r c o any o he i t um e o und or e r d o nquie nt he e m , he nt a t r t r ns r nt r a re n b t e teAu h rt a d ( me1. ( c e No 4 l Ex. ( mp a i a d d . g e me t ewe n h t o i n Ca 1 ' Do k t . - , B e h ss d e l) y 1' Any pos- a tmptby t Au hort t i e tlngua i t t c r tr ga di s h adut thoc te he t iy o ns r a ge n o he ontac e r ng uc y i u valng.SeeLa downeDe Co. Xeo Re lvCor ,51 S. 2d 15 1 ( .1 ) s na ii nds v. v. rx at p. 4 E. 7, 61 Va 999 ($W j wilnoti e tbyc tuci f t be ftofapa t atr notex e si t t e l ns r onsr ton, or he nei ( ry, em pr s n he conrc.) l ta d r ni 1w c tu ...c rcglsrcl t ef t t t i e tonsof ta t' . nse d,t gi a a onsr es onta ts tity o fecuae he ntni ' vi t pa te ,gi ng t r s t rpl n m ea ng,a de lni t r ad i a a bi uiy orm e ni he ri s vi e m hei ai ni nd c i ng o e n n m g t a ng t pa te di noti e ' Dr sM cmt Co p. Ha he ris d nt nd. aca ' . r v. nove l .Co. 798F.Supp. 766,773 r ns , 2d ( D. .2011 (ii Fl v. Nec l . ,427S. 2d 1 1 ( 1 :. E. Va ) ctng ovd N. k ns Co. E. 93, 96 Va. 993 I f c , ca e V igi a l w r quies sr c c t uc i ofc r t lt r s Fi s St t , n a t be us r ni a e r ti t ons r ton ontac ua e m , r t a e a e a t notc oft A ut iy' m it ke w a pr bie by t Es r A g ee e tf om bs nt c ual i e he hort s s a , s ohi t d he c ow r m n r de ii i o es o t c ksr ei d f om t A u hort t pl n l postng nt cr w he hec ec ve r he t iy- he ai angua oft ge he co r ta horz Fis St t t pl e f ntac ut i ed r t a e o ac unds i o es r onl whe c cksw e e dr wn by t nt c ow y n he r a he Auhort a madepa et Fis Stt a ecr a nt Se 30 C. S.Esr ,s a j 1 t iy nd yabl o rt ae s s ow ge . e A J. cows upr, 7 (W sag nea r e aperonwhoasume a doe a tast de ia yi esr w i hedt ( e rl ul, s s s nd s c he postr n c o s l o sr c co pla e w ih t t r soft es ow a e m e a m a notpe f m a a t wih t i t m i nc t he e m he cr gr e nt nd y r or ny c s t r er ef ence t handlng t deposi oris di pos w hi arenotaut i by t cont actof o i he t t s al ch hor zed he r 11 de i.l;i (d- ve,whiea e cow hode mus c ysrcl wiht i tu tonso post' d. s l lowe r l n s r l r t ompl tity t he nsr ci f t ep ris. . a e co h l r sn g nea d t t p lc t eaf iso isd po io s' . h a t . , n s r w ode ha o e rl uy o o ie h far f t e st r.) e ' Furhe m o e,notonl wasFis Stt pr bie byt t m soft Es r Agr e e fom t r r y r t a e ohi t d he er he c ow e m nt r pl c ng t c cksi e c ow ,butFis St t a enta t lnotc oft A ut iy' m i t ke w a a i he he n sr r t a e, bs c ua i e he hort s s a , s l ga l o i t d t de i t c ksi o t a ou oft na e paye - ca nel is e ly blga e o post he hec nt he cc nt he m d e r l,t c so r Se Va Co eAl j83 41 ()( e t 01 )(t-ea c po o ad at so lg dt u tme . e . d m. .A- 3 a W s 2 2 ûl c e t r f r f i bi e o -h payt drf ... c di t istnnsa t tmei wasa e ed....';i j8. 1 9( (k he a t ac or ng o t e t he i t cc pt ' d. 3A- 0 b) $ ) A pr mieoro de t ti notpa et be rri pa bl t or ri i i paya e()t t or rof o s r r ha s yabl o ae s ya e o de f t s bl i o he de ani ntfe pes or(it a i ntfe pes n orode .A pr s o or rt ti pa bl t de iid ron i) o n de iid ro r r omie r de ha s ya e o or ri paya et t i ntfedpes ' ;s as Coc sAdm' v.Loyal 1 S. 881 883 de s bl o he de ii ron.) ee lo ke' ' r l, 43 E. , ( 1 (t- ba rc nnotexc ehi dio e et hi c t rsode s i t due Va. 928) çl nke a -he us s s bedinc o s usome ' r r ,n he co s ofbus ne s by s ti up t the k w , ha r as t b i ve t t c t e ' or r ur e i s , e tng ha ne or d e on o ele , hat he us om r s de wa gi ni pr to ofanunlwf pur e' . s ve n omoin a ul pos .' ) l s r , he m e e r ei toft c c f o t Aut iy di nott i rFis St t ' n ho t t r ec p he he ks r m he hort d rgge r t a e s con r c ua dute a e c ow a ntunde t t r s oft Es r A g ee e . Furhe r f ta t l is s s r ge r he e m he c ow r m nt t nuo e, or t r a onssa e a ve no a o tofdic r i ot is ofc tuc i notc woul he e s tt d bo , m un s ove y nt he s ue onsr tve ie d pr l ga l s g fca i t sc e Thus t c tw ilg a Fis St t s m oton f s m a y ove e ly i nii nt n hi as . , he our l r nt r t a e' i or um r j men a moi t dimisa t t br a hofc rc cai i ofra t conrc cai udg t nd ton o s s s o he e c onta t l m ns a s he ta t l m r i on c t uc i notc a a bas sf Fis St t s la lt eles ons r tve i e s i or r t a e' i biiy. b. Breach off duci dut cl m i ary y ai The A ut iy c r cty as e t t t he s m e f c ss hort or e l s r s hat t a t a t uppori a c ai f br c of tng l m or ea h contac m ay s r t upporta t i breach oftduci y dut cl m asw el,so l ast l t dut ortous i ar y ai l ong he ater y a i e ou oft co m on 1 w r t t n t c r c . Sco tv. a Ba nR & Tr tCo. rs s t he m a a her ha he onta t' ' t Br nch nki us , 588F. pp. 667, ( . Va. ) afd,332F. x 11 ( hCi. 09) The Su 2d 677 W D. 2008, f App' 2 4t r 20 . 1 2 Au hort co e t ta e cr a ntsfduc a' d isa ieoutoft comm o lw ba e t iy nt nds ha n s ow ge ' i i l ute rs y he na sd upon t p i i - ge r a i hi esa ihe by a e c o a r nge e . Furher o e t he rncpala nt eltons p tbls d n s r w r a m nt t m r , he A ut iy ar s t tFi s St t br ac d isale d c m on l w fduci r du y t e r i e hort gue ha r t a e e he t l ge om a i a y t o xe c s r a o bl ca ea s l by f ii t i r f t ri o t i ende de tna i oft c ks e s na e r nd kil alng o nquie urhe nt he nt d si ton he hec bas on t a es t w hi t c c w e e s nta ba e on t m e or nda on t a t he ed he ddr s o ch he he ks r e nd s d he m a he tac d subs I c tas, r tSt t a gue t tisdutest t Auho iy fowe e iey fom t t . n on r t Fis ae r s ha t i o he t rt l d ntr l r he Es ow A greem ent cr . Asdicus e a s s d bove a es r w ag towestducir du i t isprnci s Howe r , n co en i a y tes o t i pal. ve , w he he t e fduci r dutess i f om t c m on l w ,f om t c r t orf om a t r hos i a y i pr ng r he om a r he ontac , r com bi ton oft t o, i a quesi t tpr s i m a e i li t sc e. N o onl a e t na i he w s ton ha ove m t r a n hi as 5 t y r he fd cayd te a s cae wi e co ar n e n sd hn ro ri so eta gh d te i u ir uis so itd t s r w ra g me t t h muc ar we n c p h n t e uis i ot rtducayrltons pss hasat ne a cint'28Am, r 2dEs ow,s a j23, nj he i ir eai hi uc tor y nd le , ' Ju . cr upr, butt pa te t a es ow a e m e m a f r he lm i t e fd i r dute t oug a he r i s o n cr gr e nt y u t r i t hos i uc a y i s hr h conrcua pr sont t ef t Ra rv.W a hovi Ba 7 Va. r 1 1( .Ci.Ct ta t l ovii o hat fec. yde c a nk, 2 Ci. , Va r , 200 ;seas Lecadv. Pr Co.No.1:0c 6) e lo r EOT od. , 1 v00041 2011W L 86598,a *1 ( . Va. , t 3 W D. J n.1 2011 (t hent pates r ltons p i e trl defne byc rc,a t c rc a 1, ) l W he ri ' eai hi s niey i d onta t nd he onta t i e nofd ir dut nonee ss'(ii Rosma 2008W L 46 3,a * ) mpos s iuca y y, xit. ctng s n, ' 4221 t 7); Resae nt( r)ofAg nc s a j8. c . (W c ta tmayas i a o it ttme Thid e y, upr, 08 mtb $ onrc lo,n pprprae cic tnc s rieorl rt sandadofpero ma et bee ce ofa a nt....) rumsa e , as owe he t r fr nc o xpe td n ge '. ' Furhe m or t c tnot t ti pos ng a c m o l w dut on ba t s r i z che k t r e, he our es ha m i om n a y nks o c utni e c subsf r i oft dr we ' i e a t t naur oft c k woul wr a havocon t t or elcs he a rs nt nt s o he t e he hec d ek he 5 Howe t c tnot st t be aus an es r ar a m e cr t s a c t a ua prnci lage t ver he our e ha , c e c ow r nge nt ea e on r ct l i pa - n r ai hi W i l , 4 S. 2d a 6 anesr age ' fd ar d isa g yars s el fom ac rcta eltons p, nsow 25 E. t 0, cow nts iuci y ute r uabl ie ol y r onta nd notfo t co r m he mmon l Se Lega dv. Pr Co.No.11 v000 2011W L 86598,a #1 ( . Va.J n. aw. e r EOT od. , :0c 41, t 3 W D. a 1 , 01 ) d cayd te c naieete fo ac nrcu l rvso o tr g ac mmo lw d t . . Wh n 1 2 1 CTiu ir u is a rs ih r rm o tata po iin r hou h o n a uy . . e t pari s r l tons p i e ie y de i d by c r c ,a t e co r ti pos s no fduci r dut no exit .' he te ' e a i hi s ntr l fne ont a t nd h ntac m e i a y y, ne ss' (in Foea M iso Bd o S. p it n e t- v Wa e 4 9S. 2 1 4 1 8( . 9 1, n Ro s n 20 ct g r in sin . f Ba ts Co v nin . d , 0 E.d 4 , 4 Va l 9 ) a d sma , 08 i o WL46 2 1 a * :. 4 2 3y t 7 13 ba ng i ty- s ci l whe asi t i t ntc e,aba ha be n r le d ofs h a nki ndusr - pe aly n, n he nsa as nk s e e ive uc du y by t e es t r ofa es r w c r c . Se Be na di v. nt N a ' Ba of t he xpr s e ms n c o onta t e r r ni Ce . tl nk Ri mond,290S. 2d863,864 ( 1 ( i t ti sbl bur nont ch E. -65 Va. 982) notng he dmposi e de he Comm o alh' ba ng s t m 't twoul bec us d byr quii ba t i uiei ot nwe t s nki yse 'ha d a e e rng nks o nq r nt he s ur ofe c de ir r es ofwhehe c ksweede i tdf as i pur e; o ce a h post egadl s t r hec r sgnae or pecal pos ) Co k ' Ad r 1 3S. a 8 2 3( o igt et n e s n b e' ndf n e r be' u d nta c e s m', 4 E. t 8 -8 n tn h i r ao a l'a ç b a a l'b r e h t u u wo dbei ul mpos d on banksi t y we er uie t ma i r ea h tme c rai wor e f he r eq r d o ke nquiy c i e t n ds a aedo ac c .Fort s r s ,hec twilgr tFis Stt smoi f s ppe r n he k) he e eaons t our l mz rt ae' ton or ummay r j udgme a motont dimisast t brac oftd aydut cai i ofra t scai nt nd i o s s o he e h i ucir y l m ns a s hi l m r le o c t u tve notc asa ba i f Fis St t sla lt e i s n onsr c i ie s s or r t a e' i biiy. C. R em ai ng cl m s ni ai TheAu h rt as b igsa an tF rtSaecamsf rid mniiai n u j s t o i lo rn g is is tt li o n e fc to , nu t y e i hm e t a dec a a o y r lef Be a e al oft e r m a ni coun sa e pr i e on Fis nrc n , nd l r t r e i . c us l hes e i ng t r em s d rt St t sale br a h oft Es r w A g e m en oro is a l d br a ofa f d i r dut t a e' l ged e c he c o r e t n t lege e ch i uc a y y, he c u t lg a th mo inf rs o r wil r n te to o ummayj g n a dtemoint d s s a t t s cams r ud me t n h to o imis s o hee li , pu s ntt isr i a r ua o t ulngs bove,ns a ast s r mani ca msr l on consr venotc a a i of r he e e i ng li ey tudi ie s bas sf Fis St t s la lt i or r t a e' i biiy. 2. A ct know l ual edge N o w ihsandi t a t t t ng he bove a ys sr r ng t l ga f iiy oft Aut r t s nal i ega di he e l utlt he ho iy' co tuc i notc a gum ent t c tbe i ve t tt Aut iy i entte t c nsr tve i e r , he our le s ha he hort s il d o onduc t di co r on t na r i s ofw he he Fis S a e ha a t lknow l e t tt c c dr wn s ve y he r ow s ue t r r t t t d c ua eda ha he he ks a by t A ut iy, a pa bl t Canw l,a m a l d t Fis St t we e f t e c ow he hort m de ya e o l nd ie o r t a e, r or he s r a ou . Fis St t a know l st ti m a be he d la e i t s c e i i ha a t lnotc of cc nt r t a e c edge ha t y l i bl n hi as f t d c ua ie t A ut iy' m it ke i m a ng t c c pa bl t Ca ne l i t d oft Fi s St t a he hort s s a n ki he he ks ya e o r l, ns ea o rt ae s 1 4 es o ag t E. ,Benadi v.Ce . tlBa ofRihmond,290S. 2d863,864( crw en . g. r r ni ntNa' nk c E. Va. 1 2) Pe esNa' Ba v.Colma 9S. 2d3 335( 1 40 .TheAut iya s st 98 ; opl tl nk e n, E. 33, Va. 9 ) hort dvie he c r t ti bele st ti c d s ou t ha t i ve ha t oul how tuough di c r t tFis St t ha a t know l dge l s ove y ha r t a e d c ual e t tt c c a is i t sc s ( pe al t c ksf t i subswihecr or ha he he ks t sue n hi a e es cily he hec eaurng t t s ow- rti gerltdwor )weei e df t ecrw a o .Basdont srprs nttont eana -eae ds r ntnde or he s o cc unt e hi e e e ai o t c tt c t le st tt Aut iy s d bepe te t c nduc d s ove y i ot he our, he our bei ve ha he hort houl nuit d o o t i c r nt he i s ofa t lkno l dge. H oweve ,t cou ti c t a ne t advi e t tt m er no a i o s ue c ua w e r he r s ons r i d o s ha he e t ton n che k s ubsofes r -orr t i ge r a ed wor , is f i i uf i e a a m a t r o 1 w t c t c ow e a na - el t ds by t el, s ns fci nt s te f a o esa ih a t lno ie o t pa tofFis St t nsea t Aut iy m us pr eaddii l t bls c ua tc n he r rt ae.I t d,he hort t oduc tona obi ci e de s si t tFis Stt ,orisa nt ore pl es a t ly kne t t e tve vi nce ugge tng ha r t ae t ge s m oye , c ual w ha t ec kswe e i ende f t e c ow ac ounta t tt c c f lwihi t a tof hos hec r nt d or he s r c nd ha he he ks el t n he mbi t Es r A gr e e . H e e a t ss a i t c e t c tw ilde Fi s St e' m oto he c ow e m nt6 nc , t hi t ge n he as , he our l ny r t at s i n f rs mmayj dg n a dmo int d s s is f r steAu h rt scamsr l o a t a o u r u me t n to o imis n o a a h t o i li ey n cu l y' know l dge asa ba i f Fi s St t sla lt Acc di y,t c t ilgr ntt A ut iy' e s s or r t a e' i biiy. or ngl he our w l a he hort s Ru e5 ()moina t t en ro is eo a t a k o e g . l 6 d to s o h ar w su f cu l n wld e 11 1. Concl on usi Fort r a onspr s nt a he e s e e ed bove t c ur wilgr nti pa ta de i pa tFis St t s , he o t l a n r nd ny n r r t a e' moi nfrs mmmyj d me ta moint ds s, n wilg a theAuh rt ' Rue5 () to o u u g n nd to o imis a d l r n t t o iys l 6d m oton. i The Clr i die t d t s nd ce tfe c esoft sor rt a1c ek s rce o e rii d opi hi de o 1 ouns lofr or e ec d. ENTER:Ths iêX d yo J n , 01 . i, a f u e2 2 Chi fUnied St t D i ti tJ e t a es s r c udge 6 Thec t t t ti a t c our noes ha f fer onduci dic l t Aut iyf l t unco s h e de ofa ual tng s ovey he hort ais o ver uc vi nce ct k o e g ,t camsa ans FrtSaema p o el b tesbe to arn we moinfrs mmayj d me t n wld e i li g i t is tt y r p ry e h u jc f e e d to o u r u g n. s 15