Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 1 of 116
IN THE UNITED STATES COURT OF FEDERAL CLAIMS No. 92-550C (Judge Williams) ______________________________________________________________________________ NORTHEAST SAVINGS, F.A., Plaintiff, v. THE UNITED STATES, Defendant. ______________________________________________________________________________ DEFENDANT'S POST TRIAL REPLY BRIEF ______________________________________________________________________________ STUART E. SCHIFFER Deputy Assistant Attorney General JEANNE E. DAVIDSON Acting Director KENNETH M. DINTZER Assistant Director Of Counsel: SCOTT AUSTIN MELINDA HART ELIZABETH HOSFORD SAMEER YERAWADEKAR Trial Attorneys Department of Justice
TAREK SAWI Senior Trial Attorney Commercial Litigation Branch Civil Division Department of Justice Attn: Classification Unit, 8th Floor 1100 L Street, N.W. Washington, D.C. 20530 Tele: (202) 616-0320 Fax: (202) 305-7643 Attorneys for Defendant
February 20, 2007
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 2 of 116
TABLE OF CONTENTS Page TABLE OF AUTHORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -ivDEFENDANT'S POST TRIAL REPLY BRIEF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Argument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 I. Northeast's Lost Profits Claim Is Utterly Without Merit . . . . . . . . . . . . . . . . . . . . . . . . . 3 A. B. Neither The Breach Nor Shrinkage Constitute Proof Of Damage . . . . . . . . . . . . . 7 The Courts Have Not Ever Awarded Lost Profits To A Firm With A Record Of Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. Lost Profits Are Not Available To Unprofitable Firms Such As Northeast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Northeast Did Not Have A Record Of Profitability . . . . . . . . . . . . . . . . 12
2.
C.
3. Lost Profits Awards Are The Exception Not The Rule . . . . . . . . . . . . . 13 Northeast Did Not Want To Engage In Risk Controlled Arbitrage And Its Regulators Would Not Have Permitted Such A Strategy . . . . . . . . . . . . . . . 15 Northeast's Claim About The Size Of The Forgone Portfolio Is Demonstrably False . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Northeast's Claim Regarding The Size Of The Divested Assets Is Demonstrably False . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Northeast's Assumptions About The Credit Risk Of The Forgone Assets Is Demonstrably Wrong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Northeast's Assumptions About The Interest Rate Risk Of The Forgone Assets Is Demonstrably Wrong . . . . . . . . . . . . . . . . . . . . . . . . . 32 The Phase Out Of Goodwill Benefitted Northeast . . . . . . . . . . . . . . . . . . . . . . . 38 1. 2. Reduction Of Credit Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Termination Of Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
D.
E.
F.
G.
H.
-i-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 3 of 116
3. I.
Reducing General And Administrative Expenses . . . . . . . . . . . . . . . . . . 42
Northeast's Lost Profits Claim Does Not Meet Any Of The Legal Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 1. 2. 3. Causation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Foreseeability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Reasonable Certainty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
II.
Northeast Is Not Entitled To Recover As Damages Any Costs Associated With Its Acquisition Of Rhode Island Credit Unions In 1992 . . . . . . . . . . . . . . . . . . . . 54 A. B. C. Northeast's DEPCO Claim Is Based On Counterfactual Assumptions . . . . . . . . 55 Dr. Baxter's Model For Measuring The Alleged Costs Is Wrong . . . . . . . . . . . 57 Any Costs Associated With The Issuance Of Preferred Stock When It Acquired Rhode Island Credit Unions In 1992 Are Not Recoverable Because They Are The Result Of Remote Consequences . . . . . . . . . . . . . . . . . 61 Northeast Is Not Entitled To Recover Hypothetical Costs Associated With The Acquisition Of The Rhode Island Credit Unions . . . . . . . . . . . . . . . . 63 Northeast Is Not Entitled To Recover Costs Incurred By Its Holding Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Northeast Is Not Entitled To A Tax Gross-Up . . . . . . . . . . . . . . . . . . . . . . . . . . 65
D.
E.
F. III.
Northeast's Alleged "Wounded Bank Damages" Are Premised Upon Its Flawed Lost Profits Model And Are Factually And Legally Infirm . . . . . . . . . . . . . . . . 70 Northeast Is Not Entitled To A Jury Verdict . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Northeast Wrote Off Its Goodwill For Non-Breach Reasons . . . . . . . . . . . . . . . . . . . . . 74
IV. V.
Response To Northeast's Proposed Factual Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 I. II. III. How Thrifts Make Money (PFF 1-34) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 FIRREA (PFF 35-39) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Northeast Prior To FIRREA (PFF 40-193) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 -ii-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 4 of 116
A.
Both Northeast And Its RCA Portfolio Were Unprofitable . . . . . . . . . . . . . . . . . 81
B.
Northeast Wanted To Divest Its RCA Portfolio As Soon As It Could Do So Without Taking A Major Loss To Its Capital . . . . . . . . . . . . . . 82 The Phase-Out Caused The Cessation Of Higher Credit Risk Lending . . . . . . . 84
C. IV.
Northeast's Response To FIRREA (Pl. PFF 194-292) . . . . . . . . . . . . . . . . . . . . . . . . . . 86 A. The Breach Did Not Cause Shrinkage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 1. 2. 3. 4. The Pre-FIRREA Capital Requirements Mandated Shrinkage . . . . . . . . 86 Northeast's Desire To Exit RCA Would Have Mandated Shrinkage . . . 87 Dr. Baxter's Asset Size Assumption Posits A Clairvoyant Northeast . . . 88 Dr. Baxter Counterfactually Assumes That Northeast Would Prefer Having An RCA Portfolio To Being Well Capitalized . . . . . . . . . 90 Dr. Baxter Counterfactually Assumes No Dividend Payments . . . . . . . . 92
5. B.
The Breach Caused The Admittedly Beneficial Securitization And Recourse Removal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 The Breach Had No Negative Impact On the DEPCO Transaction Or Northeast's SAIF Assessments Or Advisory Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
C.
V.
Measuring The Impact Of The Breach (PFF ¶¶ 293-543) . . . . . . . . . . . . . . . . . . . . . . . 94 1. Northeast's erroneously Contends That Its Incremental Retail Retail Business Would Have Been Profitable . . . . . . . . . . . . . . . . . . . . . 95 Northeast's erroneously Contends That Its California Retail Lending Was Profitable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
2.
VI. VII.
The Testimony Of Mr. O'Keefe And Mr. Brenner Are Fatal To Northeast's Claim . . 100 Northeast's Attack On Our Experts' Credibility Is Unavailing . . . . . . . . . . . . . . . . . . . 102
CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
-iii-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 5 of 116
TABLE OF AUTHORITIES Page(s) CASES American Federal Bank, FSB v. United States, 68 Fed. Cl. 346 (2005) ................................................................................................................. 61 Bank of America, F.S.B. v. United States, 67 Fed. Cl. 577 (2005) ........................................................................................................... 66, 67 Bank of America, F.S.B. v. United States, 70 Fed. Cl. 246 (2006) ................................................................................................................. 68 Bank United v. United States, 80 Fed. Appx. 663, 2003 WL 22177282 (Fed. Cir. 2003), cert. denied, 543 U.S. 916 (2004) ................................................................................................ 15 Bank United of Texas v. United States, 50 Fed. Cl. 645 (2001), aff'd in part & rev'd in part, 80 Fed. Appx. 663, 2003 WL 22177282 (Fed. Cir. 2003), cert. denied, 543 U.S. 916 (2004) ................................... 58 Barron Bancshares, Inc. v. United States, No. 90-830 (Fed. Cl.) ................................................................................................................... 15 Bluebonnet Sav. Bank, F.S.B. v. United States, 266 F.3d 1348 (Fed. Cir. 2001) ............................................................................................. 44, 73 Calderon v. Thompson, 523 U.S. 538 (1998) ..................................................................................................................... 68 California Fed. Bank, FSB v. United States, 395 F.3d 1263 (Fed. Cir. 2005), cert. denied, 126 S. Ct. 344 (2005) .................................... 14, 45 California Fed. Bank, FSB v. United States, 245 F.3d 1342 (Fed. Cir. 2001), cert. denied, 534 U.S. 1113 (2002) .......................................... 58 California Fed. Bank, FSB v. United States, 54 Fed. Cl. 704 (2002), aff'd, 395 F.3d 1263 (Fed. Cir. 2005) ............................................ passim Caroline Hunt Trust Estate v. United States, 470 F.3d 1044 (Fed. Cir. 2006) ................................................................................................... 64
-v-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 6 of 116
Castle v. United States, 301 F.3d 1328 (Fed. Cir. 2002), cert. denied, 539 U.S. 925 (2003) ........................................ 8, 22 Centex Corp. v. United States, 55 Fed. Cl. 381 (2003), aff'd, 395 F.3d 1283 (Fed. Cir. 2005) .............................................. 67, 68 Charter Fed. Bank v. United States, No. 95-513 (Fed. Cl.) ................................................................................................................... 15 Citizens Fed. Bank, F.S.B. v. United States, 59 Fed. Cl. 507 (2004) ........................................................................................................... 66, 68 Commercial Federal Bank, F.S.B. v. United States, 59 Fed. Cl. 338 (2004), aff'd, 125 Fed. Appx. 1013 (Fed. Cir. Apr. 8, 2005) ................. 10, 66, 68 DPJ Co. v. FDIC, 30 F.3d 247 (1st Cir. 1994) .......................................................................................................... 60 Dawco Constr., Inc. v. United States, 930 F.2d 872 (Fed. Cir. 1991) ..................................................................................................... 74 Diesel Systems, LTD. v. Yip Shing Diesel Eng'g Co., 861 F. Supp. 179 (E.D.N.Y. 1994) .............................................................................................. 65 Dura Pharmaceuticals, Inc. v. Broudo, 544 U.S. 336 (2005) ..................................................................................................................... 58 Eleven Line, Inc. v. North Texas State Soccer Assn., Inc., 213 F.3d 198 (5th Cir. 2000) ......................................................................................................... 9 Erickson Air Crane Co. of Wash., Inc. v. United States, 731 F.2d 810 (Fed. Cir. 1984) ..................................................................................................... 65 Fifth Third Bank v. United States, 402 F.3d 1221 (Fed. Cir. 2005) ............................................................................................. 14, 63 First Hartford Corp. Pension Plan & Trust v. United States, 194 F.3d 1279 (Fed. Cir. 1999) ................................................................................................... 65 First Heights Bank, F.S.B. v. United States, 57 Fed. Cl. 162 (2003), aff'd, 422 F.3d 1311 (Fed. Cir. 2005) ........................................ 66, 67, 68 Glendale Fed. Bank, F.S.B. v. United States, 378 F.3d 1308 (Fed. Cir. 2004), cert. denied, 544 U.S. 904 (2005) ............................................ 14 -vi-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 7 of 116
Glendale Fed. Bank, F.S.B. v. United States, 43 Fed. Cl. 390 (1999) ......................................................................................................... passim Glendale Fed. Bank, F.S.B. v. United States, 239 F.3d 1374 (Fed. Cir. 2001) ............................................................................................... 8, 46 Globe Sav. Bank, F.S.B. v. United States, 65 Fed. Cl. 330 (2005), aff'd, in part, remanded 189 Fed. Appx. 964 (Fed. Cir. Jul. 20, 2006) ....................................................................................................... passim Granite Mgmt. Corp. v. United States, 74 Fed. Cl. 155 (2006) ................................................................................................................... 7 Granite Mgmt. Corp. v. United States, 416 F.3d 1373 (Fed. Cir. 2005) ......................................................................................... 7, 63, 65 Hansen Bancorp, Inc. v. United States, No. 92-828 (Fed. Cl.) ................................................................................................................... 15 Hercules Inc. v. United States, 24 F.3d 188 (Fed. Cir. 1994) ....................................................................................................... 61 Home Savings of America, F.S.B. v. United States, 399 F.3d 1341 (Fed. Cir. 2005) ................................................................................................... 66 Hughes Communications Galaxy, Inc. v. United States, 271 F.3d 1060 (Fed. Cir. 2001) ................................................................................................... 62 Landmark Land Co. v. United States, 256 F.3d 1365 (Fed. Cir. 2001) ....................................................................................... 47, 64, 65 LaSalle Talman Bank, F.S.B. v. United States, 45 Fed. Cl. 64 (1999) ................................................................................................................... 11 LaSalle Talman Bank, F.S.B. v. United States, 64 Fed. Cl. 90 (2005), aff'd, 462 F.3d 1331 (Fed. Cir. 2006) ................................................ 10, 11 LaSalle Talman Bank, F.S.B. v. United States, 317 F.3d 1363 (Fed. Cir. 2003) ....................................................................................... 58, 59, 61 LaSalle Talman Bank, F.S.B. v. United States, 468 F.3d 1331 (Fed. Cir. 2006) ................................................................................................... 66
-vii-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 8 of 116
LaVan v. United States, 56 Fed. Cl. 580 (2003), aff'd in part, remanded 382 F.3d 1340 (Fed. Cir. 2004), reh'g denied (Nov. 15, 2004) ....................................................................................................... 15 Local Oklahoma Bank, N.A. v. United States, 59 Fed. Cl. 713 (2005), aff'd, 452 F.3d 1371 (Fed. Cir. 2006) .............................................. 66, 68 Maco Bankcorp, Inc. v. United States, No. 94-625 (Fed. Cl.) ................................................................................................................... 15 Mutual Fed. Sav. Bank v. United States, No. 95-514 (Fed. Cl.) ................................................................................................................... 15 Official Comm. of Unsecured Creditors v. R.F. Lafferty & Co., 267 F.3d 340 (3d Cir. 2001) ........................................................................................................ 64 Old Stone Corp. v. United States, 450 F.3d 1360 (Fed. Cir. 2006), petition for reh'g & reh'g en banc filed, (Fed. Cir. July 7, 2006) ............................................................................................... passim Picture Lake Campground, Inc. v. Holiday Inns, Inc., 497 F. Supp. 858 (E.D. Va. 1980) ............................................................................................... 65 Rumsfeld v. Applied Cos., 325 F.3d 1328 (Fed. Cir. 2003) ................................................................................................... 13 Southern Cal. Fed. Sav. & Loan Ass'n v. United States, 422 F.3d 1319 (Fed. Cir. 2005), cert. denied, 126 S. Ct. 2967 (2006) ........................................ 64 Southern Pacific Co. v. Darnell-Taenzer Lumber Co., 245 U.S. 531 (1918) ..................................................................................................................... 61 TCF Bank of Minnesota, FSB v. United States, No. 93-672 ................................................................................................................................... 15 United States v. Johnson Controls, Inc., 713 F.2d 1541 (Fed. Cir. 1983) ................................................................................................... 65 Vermont Fed. Bank, F.S.B. v. United States, No. 95-536 (Fed. Cl.) ................................................................................................................... 15 Wells Fargo Bank, N.A. v. United States, 88 F.3d 1012 (Fed. Cir. 1996) ....................................................................................... 14, 51, 103
-viii-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 9 of 116
Westfed Holdings, Inc. v. United States, 407 F.3d 1352 (Fed. Cir. 2005) ................................................................................................... 63 STATUTES, RULES & REGULATIONS 26 U.S.C. § 61 ............................................................................................................................. 69 26 U.S.C. § 6103 .......................................................................................................................... 68 Financial Institutions Reform, Recovery and Enforcement Act, of 1989, Pub. L. No. 101-73, 103 Stat. 183 (1989) ............................................................................................ 16 RCFC 60(b) ...................................................................................................................... 66, 67, 68 MISCELLANEOUS 11 Charles Alan Wright, Arthur R. Miller, and Mary Kay Kane, Federal Practice and Procedure, § 2864 (2d ed. 1995) ................................................................ 68 Dunn, Recovery of Damages For Lost Profits § 5.5 (4th ed. 1992) .............................................. 9 11 William Meade Fletcher, Cyclopedia of the Law of Private Corporations § 5096 (Perm. Ed. 2003) .............................................................................................................. 64 Restatement (Second) of Contracts § 347 (1981) ........................................................................ 44 Restatement (Second) of Contracts § 351 (1981) ........................................................................ 44 Restatement (Second) of Contracts § 351(2) ............................................................................... 47 Restatement (Second) of Contracts § 351 cmt a (1981) .............................................................. 47 Restatement (Second) of Contracts § 351 cmt e .......................................................................... 50 Restatement (Second) of Contracts § 352 (1981) ........................................................................ 44
-ix-
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 10 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 11 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 12 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 13 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 14 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 15 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 16 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 17 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 18 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 19 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 20 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 21 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 22 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 23 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 24 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 25 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 26 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 27 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 28 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 29 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 30 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 31 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 32 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 33 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 34 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 35 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 36 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 37 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 38 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 39 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 40 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 41 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 42 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 43 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 44 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 45 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 46 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 47 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 48 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 49 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 50 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 51 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 52 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 53 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 54 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 55 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 56 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 57 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 58 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 59 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 60 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 61 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 62 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 63 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 64 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 65 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 66 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 67 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 68 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 69 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 70 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 71 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 72 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 73 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 74 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 75 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 76 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 77 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 78 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 79 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 80 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 81 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 82 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 83 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 84 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 85 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 86 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 87 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 88 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 89 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 90 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 91 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 92 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 93 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 94 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 95 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 96 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 97 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 98 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 99 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 100 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 101 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 102 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 103 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 104 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 105 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 106 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 107 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 108 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 109 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 110 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 111 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 112 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 113 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 114 of 116
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 115 of 116
Respectfully submitted, STUART E. SCHIFFER Deputy Assistant Attorney General /s/ Jeanne E. Davidson JEANNE E. DAVIDSON Acting Director /s/ Kenneth M. Dintzer KENNETH M. DINTZER Assistant Director /s/ Tarek Sawi TAREK SAWI Senior Trial Attorney Commercial Litigation Branch Civil Division Department of Justice Attn: Classification Unit, 8th Floor 1100 L Street, N.W. Washington, D.C. 20530 Telephone: (202) 616-0323 Facsimile: (202) 307-0972 Attorneys for Defendant
OF COUNSEL: SCOTT AUSTIN MELINDA HART ELIZABETH HOSFORD SAMEER YERAWADEKAR Trial Attorneys
February 20, 2007
Case 1:92-cv-00550-MCW
Document 168
Filed 02/20/2007
Page 116 of 116
CERTIFICATE OF FILING
I hereby certify under penalty of perjury that on this 20th day of February, 2007, a copy of the foregoing "DEFENDANT'S POST TRIAL REPLY BRIEF " was filed electronically. I understand that notice of this filing will be sent to all parties by operation of the court's electronic filing system. Parties may access this filing through the Court's system.
/s/ Tarek Sawi Tarek Sawi