Free Motion in Limine - District Court of Arizona - Arizona

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LAW OFFICES One Arizona Center, 400 E. Van Buren Phoenix, Arizona 85004-2202 (602) 382-6000

Dan W. Goldfine (#018788) Richard G. Erickson (#019066) SNELL & WILMER L.L.P. One Arizona Center 400 East Van Buren Street Phoenix, AZ 85004-2202 Telephone: (602) 382-6000 Facsimile: (602) 382-6070 [email protected] [email protected] Attorneys for Plaintiffs and Grant Woods, Esq. (#006106) GRANT WOODS, P.C. 1726 North Seventh Street Phoenix, Arizona 85006 Telephone: (602) 258-2599 Facsimile: (602) 258-5070 [email protected] Attorneys for Plaintiffs and Counterdefendants and Third Party Defendants

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Snell & Wilmer L.L.P.

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA Meritage Homes Corporation, et al., Case No. CV-04-0384-PHX-ROS Plaintiffs, v. Ricky Lee Hancock, et al., Defendants. AND RELATED COUNTERCLAIMS AND THIRD PARTY CLAIMS (Assigned to the Honorable Roslyn O. Silver) PLAINTIFFS' MOTION IN LIMINE RE TESTIMONY AND ARGUMENT THAT PLAINTIFFS PURPORTEDLY FAILED TO COMPLY WITH SARBANES-OXLEY DISCLOSURE OBLIGATIONS

Plaintiffs move to exclude all reference to Plaintiffs purported1 failure to comply with Sarbanes-Oxley disclosure obligations in opening statement, in closing argument and during testimonial evidence. Defendants have repeatedly asserted in motion papers (a) that Plaintiffs had a particularized obligation to disclose the specifics of the loss due to It is worth noting that Plaintiffs did publicly disclose to their shareholders that Defendant Greg Hancock's failure to obtain land would reduce Plaintiffs' earnings.
Case 2:04-cv-00384-ROS Document 508 Filed 08/09/2007 Page 1 of 4
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LAW OFFICES One Arizona Center, 400 E. Van Buren Phoenix, Arizona 85004-2202 (602) 382-6000

Defendants' wrongful conduct and (b) that Plaintiffs have not so disclosed. See, e.g., Defendant Greg Hancock's Updated Motion for Summary Judgment or Dismissal at 14:47 (Dec. 18, 2006) (Item # 414) ("There has been no disclosure of any claimed damages or loss to the SEC pursuant to Sarbanes-Oxley or to any other public oversight body, even though in Meritage's Disclosure Statement and in Verifications to its complaints, Larry Seay declared under oath the Meritage suffered over $44 million in damages."). Defendants fail, however, to identify any authoritative basis on which to claim both (a) that a $44 million (or $120 million) in damages2 is ever a reportable event by any public company and (b) that, in this instance, such damages are material to a company the size of Meritage. Absent Defendants establishing both of these factual predicates,

Defendants' assertions about Plaintiffs' failure to disclose are meaningless and not admissible. Fed. R. Evid. 104(b) and 401. Further, any innuendo to this purported failure to disclose will unfairly prejudice Plaintiffs by suggesting wrongdoing when none existed. Fed. R. Evid. 403. Accordingly, Meritage requests an order in limine barring Defendants and their counsel from making any reference to any failure to disclose by Plaintiffs with respect to the damages and loss caused by Defendants. RESPECTFULLY SUBMITTED this 9th day of August, 2007. SNELL & WILMER L.L.P.

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Snell & Wilmer L.L.P.

By s/ Dan W. Goldfine Dan W. Goldfine Richard G. Erickson Snell & Wilmer, L.L.P. One Arizona Center 400 E. Van Buren Street Phoenix, Arizona 85004-2202 Attorneys for Meritage and

The distinction between "damages" and an "earnings loss" or not meeting market expectations is material and should be noted.
Case 2:04-cv-00384-ROS Document 508- 2 - Filed 08/09/2007 Page 2 of 4

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LAW OFFICES One Arizona Center, 400 E. Van Buren Phoenix, Arizona 85004-2202 (602) 382-6000

By s/ Grant Woods Grant Woods, Esq. GRANT WOODS, P.C. 1726 North Seventh Street Phoenix, Arizona 85006 Attorneys for Meritage

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Case 2:04-cv-00384-ROS Document 508- 3 - Filed 08/09/2007 Page 3 of 4

Snell & Wilmer L.L.P.

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LAW OFFICES One Arizona Center, 400 E. Van Buren Phoenix, Arizona 85004-2202 (602) 382-6000

CERTIFICATE OF SERVICE I hereby certify that on August 9, 2007, I electronically transmitted the foregoing document to the Clerk's Office using the CM/ECF System for filing and transmittal of a Notice of Electronic Filing to the following CM/ECF registrants: Ivan K. Mathew Mathew & Mathew, P.C. 3300 North Central Avenue, Suite 1730 Phoenix, Arizona 85012 Attorneys for Rick Hancock, Brenda Hancock, Rick Hancock Homes, L.L.C., and RLH Development, L.L.C. Robert M. Frisbee Frisbee & Bostock, PLC 1747 East Morton Avenue Suite 108 Phoenix AZ 85020 Attorneys for Greg Hancock Kenneth J. Sherk Timothy J. Burke Fennemore Craig, P.C. 3003 N. Central Ave. Suite 2600 Phoenix, AZ 85012-2913 Attorneys for Defendant Snell & Wilmer, L.L.P. in State Court Action s/ Jessica Araujo

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Snell & Wilmer L.L.P.

Case 2:04-cv-00384-ROS

Document 508- 4 - Filed 08/09/2007

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