00a0282p.06

8QLWHG6WDWHVY5HEPDQQ 1R
RXWRIWKHGLVWULEXWLRQRIGUXJV,WLVRIFRXUVHZLWKLQWKH
SRZHURI&RQJUHVVWRFUHDWHDVWULFWOLDELOLW\FULPHLQVRPH
VLWXDWLRQV1RFRQVWLWXWLRQDOLVVXHKDVEHHQUDLVHGDERXWVWULFW
OLDELOLW\LQWKLVDSSHDO+RZHYHULWZRXOGLQGHHGUHTXLUHD
FDVXDODSSURDFKWRWKHWULDOULJKWVDIIRUGHGGHIHQGDQWVXQGHU
RXU&RQVWLWXWLRQLIWKLVFRXUWZHUHWRDOORZDWULDOFRXUWWR
GHWHUPLQH WKDW D GHIHQGDQW ZKR SOHG JXLOW\ PHUHO\ WR WKH
SK\VLFDOGLVWULEXWLRQRIDGUXJ ZLWKDFRUUHVSRQGLQJVHQWHQFH
RIOHVVWKDQ\HDUV LVVXEMHFWWRDVHQWHQFHRIXSWROLIH
LPSULVRQPHQW EHFDXVH WKH FRXUW EHOLHYHG RQO\ E\ D
SUHSRQGHUDQFHRIWKHHYLGHQFHWKDWGHDWKUHVXOWHGIURPWKDW
FULPH UHJDUGOHVV RI WKH GHIHQGDQW V LQWHQW WR KDUP 7KH
H[HUFLVHRIVXFKH[WHQVLYHSRZHUE\WKHWULDOFRXUWLQLWVUROH
DVVHQWHQFHUUDWKHUWKDQDVIDFWILQGHULOOXVWUDWHVTXLWHFOHDUO\
WKHHURVLRQRIWKHMXU\WULDODQGWKHULJKWWRKDYHHOHPHQWVRI
DQRIIHQVHGHFLGHGEH\RQGDUHDVRQDEOHGRXEWWKDWWKH&RXUW
VRH[SOLFLWO\VRXJKWWRSURWHFWLQ-RQHV
:HQHHGQRWH[DPLQHZKHWKHULIWKHSUHSRQGHUDQFHRIWKH
HYLGHQFHKDGEHHQWKHDSSURSULDWHVWDQGDUGWKHGLVWULFWFRXUW V
IDFWXDOGHFLVLRQWKDW/HRQDUG5HEPDQQ VGHDWKZDVFDXVHGE\
WKHGLVWULEXWLRQZDVFOHDUO\HUURQHRXVJLYHQRXUGHFLVLRQWR
UHPDQGIRUUHVHQWHQFLQJSXUVXDQWWRWKHDSSURSULDWHVWDQGDUG
DV RXWOLQHG DERYH :H WKHUHIRUH 5(9(56( GHIHQGDQW
5HEPDQQ VVHQWHQFHDQG5(0$1'IRUDGHWHUPLQDWLRQRI
ZKHWKHU /HRQDUG 5HEPDQQ V GHDWK ZDV FDXVHG E\ WKH
GLVWULEXWLRQRIKHURLQEH\RQGDUHDVRQDEOHGRXEW
7KH +RQRUDEOH :LOOLDP - +D\QHV -U 8QLWHG 6WDWHV 'LVWULFW -XGJH
IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
)LOH 1DPH DS
81,7('67$7(6&28572)$33($/6
)257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB
81,7(' 67$7(6 2) $0(5,&$
3ODLQWLII$SSHOOHH
Y
1$1&< -2 5(%0$11
'HIHQGDQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW*UHHQHYLOOH
1R²7KRPDV*+XOO'LVWULFW-XGJH
$UJXHG$SULO
'HFLGHGDQG)LOHG$XJXVW
%HIRUH0(55,77DQG'$8*+75(<&LUFXLW-XGJHV
+$<1(6'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 'DYLG ) 1HVV )('(5$/ '()(1'(5
6(59,&(6 2) ($67(51 7(11(66(( ,1&
&KDWWDQRRJD 7HQQHVVHH IRU $SSHOODQW 'DQ 5 6PLWK

-- 1 of 4 --

8QLWHG6WDWHVY5HEPDQQ 1R
7KH LQGLFWPHQW LQ WKLV FDVH FKDUJHG GHIHQGDQW 1DQF\ -R 5HEPDQQ
ZLWK GLVWULEXWLRQ RI KHURLQ XQGHU 86& † D DQG PDGH
DGGLWLRQDO UHIHUHQFH WR WKH SHQDOW\ VWDWXWH VHFWLRQ E & LQ ZKDW
DSSHDUV WR EH D VWDQGDUG FLWDWLRQ 8QGHU WKH UXOH ILUVW DQQRXQFHG LQ -RQHV
Y 8QLWHG 6WDWHV 86 DQG VROLGLILHG LQ $SSUHQGL Y 1HZ
-HUVH\ 6&W WKLV LQGLFWPHQW LV SUREDEO\ WHFKQLFDOO\
GHILFLHQW ZLWK UHVSHFW WR WKH LI GHDWK UHVXOWV SURYLVLRQ IRXQG ZLWKLQ DQG
DPRQJ WKH PDQ\ SRVVLEOH VHQWHQFLQJ IDFWRUV RI VHFWLRQ E & 7KH
SDUWLHV KDYH QRW UDLVHG WKDW LVVXH DV SDUW RI WKLV DSSHDO KRZHYHU DQG ZH
GHFOLQH WR DGGUHVV LW XQGHU WKRVH FLUFXPVWDQFHV
$66,67$1781,7('67$7(6$77251(<-RKQVRQ&LW\
7HQQHVVHH IRU $SSHOOHH 21 %5,() 'DYLG ) 1HVV
)('(5$/ '()(1'(5 6(59,&(6 2) ($67(51
7(11(66((,1&&KDWWDQRRJD7HQQHVVHHIRU$SSHOODQW
'DQ 5 6PLWK $66,67$17 81,7(' 67$7(6
$77251(<-RKQVRQ&LW\7HQQHVVHHIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
0(55,77&LUFXLW-XGJH'HIHQGDQW1DQF\-R5HEPDQQ
SOHGJXLOW\WRGLVWULEXWLRQRIKHURLQLQYLRODWLRQRI86&
†† D SXUVXDQWWRDSOHDDJUHHPHQW7KDWDJUHHPHQW
SURYLGHGWKDW5HEPDQQXQGHUVWRRGWKDWKHUPD[LPXPWHUPRI
LPSULVRQPHQWZDV\HDUVIRUKHUJXLOW\SOHDRIGLVWULEXWLRQ
EXWWKDWLIWKHGLVWULFWFRXUWIRXQGWKDWGHDWKUHVXOWHGIURPWKH
GLVWULEXWLRQVKHZRXOGEHVHQWHQFHGWRDWHUPRI\HDUVWR
OLIH$IWHUDVHQWHQFLQJKHDULQJWKHGLVWULFWFRXUWGHWHUPLQHG
WKDWE\DSUHSRQGHUDQFHRIWKHHYLGHQFHEHIRUHLWWKHGHDWK
RIGHIHQGDQW VH[KXVEDQG/HRQDUG5HEPDQQZDVFDXVHGE\
WKHKHURLQGLVWULEXWLRQ5HEPDQQZDVVHQWHQFHGWRDWHUPRI
PRQWKV \HDUV DQG PRQWKV :LWKRXW WKH
HQKDQFHPHQWIRUUHVXOWLQJGHDWK5HEPDQQ VJXLGHOLQHUDQJH
ZRXOG KDYH EHHQ WR PRQWKV 5HEPDQQ DSSHDOV KHU
VHQWHQFHRQWKHJURXQGVWKDWWKHGHWHUPLQDWLRQWKDW/HRQDUG
5HEPDQQ VGHDWKZDVFDXVHGE\WKHGLVWULEXWLRQZDVFOHDUO\
HUURQHRXVDQGWKDWWKH6XSUHPH&RXUWGHFLVLRQ-RQHV
Y8QLWHG6WDWHV86 GLFWDWHVWKDWWKHIDFWXDO
1R 8QLWHG6WDWHVY5HEPDQQ
2XUGXW\LQOLJKWRIWKLVFOHDUGLFWDWHIURPWKH&RXUWLVWR
H[DPLQH ZKHWKHU WKH VHQWHQFLQJ IDFWRU LQ WKLV FDVH ZDV D
IDFWXDO GHWHUPLQDWLRQ DQG ZKHWKHU WKDW GHWHUPLQDWLRQ
LQFUHDVHGWKHPD[LPXPSHQDOW\IRUWKHFULPHFKDUJHGLQWKH
LQGLFWPHQW:HILQGWKDWWKHVWDWXWHDWTXHVWLRQKHUHWRGD\
86&†SURYLGHVIRUDIDFWXDOGHWHUPLQDWLRQRIZKHWKHU
WKHGLVWULEXWLRQRIGUXJVFDXVHGGHDWKRUVHULRXVERGLO\LQMXU\
DQGWKDWWKHIDFWXDOGHWHUPLQDWLRQVLJQLILFDQWO\LPSDFWVWKH
VHQWHQFH LPSRVHG E\ WKH FRXUW LQFUHDVLQJ WKH PD[LPXP
SHQDOW\ IURP \HDUV WR WKDW RI OLIH LPSULVRQPHQW :H
FRQFOXGH WKDW SXUVXDQW WR KHU SOHD DJUHHPHQW 5HEPDQQ
ZDLYHGKHUULJKWWRDMXU\WULDORIWKHLVVXHRIZKHWKHUKHU
GLVWULEXWLRQRIKHURLQHFDXVHGWKHGHDWK+RZHYHUZHILQG
WKDW5HEPDQQGLGQRWZDLYHWKHULJKWWRKDYHDFRXUWGHFLGH
DQ\UHPDLQLQJHOHPHQWVRIWKHRIIHQVHEH\RQGDUHDVRQDEOH
GRXEWDVRSSRVHGWRPDNLQJWKRVHGHWHUPLQDWLRQVE\DPHUH
SUHSRQGHUDQFH RI WKH HYLGHQFH %HFDXVH WKH SURYLVLRQV DW
LVVXHDUHIDFWXDOGHWHUPLQDWLRQVDQGEHFDXVHWKH\LQFUHDVHWKH
PD[LPXPSHQDOW\WRZKLFK5HEPDQQZDVH[SRVHGZHILQG
WKDWWKH\DUHHOHPHQWVRIWKHRIIHQVHZKLFKPXVWEHSURYHQ
EH\RQGDUHDVRQDEOHGRXEW
$OWKRXJKZHDUHQRWUHTXLUHGWRH[DPLQHWKHVWUXFWXUHRI
WKHVWDWXWHWRGHWHUPLQHWKHOHJLVODWXUH VLQWHQWZHQRWHWKDW
WKHGHWHUPLQDWLRQWKDWWKHLIGHDWKUHVXOWVSURYLVLRQRIWKLV
VWDWXWH LV DQ HOHPHQW RI WKH RIIHQVH LV EROVWHUHG E\ WKH
VWUXFWXUHRIWKHVWDWXWHLQWKLVFDVH(LJKWHHQ86&†
SURYLGHVRQLWVIDFHWKDWWKHGLVWULEXWLRQRIDOLVWHGGUXJLV
WKHRIIHQVHZKLFKPXVWEHSURYHQDQGWKDWWKHVHQWHQFHLV
GHWHUPLQHGZLWKUHODWLRQWRZKHWKHUGHDWKRULQMXU\UHVXOWHG
IURPWKHRIIHQVHDVGLVFXVVHGDERYH7KLVVWUXFWXUHIDLOVWR
SURYLGHRQHRIWKHGHIHQGDQWSURWHFWLRQVZKLFKZDVSUHVHQW
LQWKHIHGHUDOFDUMDFNLQJVWDWXWHDWLVVXHLQ-RQHV7KHIHGHUDO
FDUMDFNLQJVWDWXWHSURYLGHGWKDWLQWHQWWRFDXVHVHULRXVERGLO\
LQMXU\RUGHDWKPXVWEHSURYHQEXWWKDWWKHDFWXDOSURRIRIWKH
LQMXU\RUGHDWKZDVWREHDVHQWHQFLQJGHWHUPLQDWLRQ,QWKH
GUXJGLVWULEXWLRQVWDWXWH86&†WKHLQWHQWWRFDXVH
LQMXU\RUGHDWKWRDQRWKHUSHUVRQLVRPLWWHGIURPWKHVWDWXWH
DOWRJHWKHU2QLWVIDFHWKHVWDWXWHLVLQHIIHFWDVWULFWOLDELOLW\
VWDWXWHZLWKUHVSHFWWRWKHLQMXU\RUGHDWKRIDQRWKHUDULVLQJ

-- 2 of 4 --

8QLWHG6WDWHVY5HEPDQQ 1R
QRWHG WKDW ZH FDQQRW VD\ WKDW FRXUWV KDYH W\SLFDOO\ RU
WUDGLWLRQDOO\ XVHG ILUHDUP W\SHV VXFK DV VKRWJXQ RU
PDFKLQJXQ DVVHQWHQFLQJIDFWRUVDWOHDVWQRWLQUHVSHFWWRDQ
XQGHUO\LQJ XVHRUFDUU\ FULPH,GDW$FRQWUDVWZDV
GUDZQ EHWZHHQ QRQWUDGLWLRQDO VHQWHQFLQJ IDFWRUV VXFK DV
ILUHDUPHQKDQFHPHQWVDQGWKRVHVHQWHQFLQJIDFWRUVZKLFKDUH
W\SLFDOO\ OHIW WR WKH GLVFUHWLRQ RI D MXGJH VXFK DV
GHWHUPLQDWLRQVRIUHFLGLYLVPRUFKDUDFWHULVWLFVRIWKHRIIHQGHU
VXFKDVODFNRIUHPRUVHRUVSHFLDOIHDWXUHVRIWKHPDQQHULQ
ZKLFKDEDVLFFULPHZDVFDUULHGRXW HJWKDWWKHGHIHQGDQW
DEXVHGDSRVLWLRQRIWUXVWRUEUDQGLVKHGDJXQ ,GDW
)LQDOO\WKH&RXUWFRQFOXGHGWKDWWKHGLIIHUHQFHEHWZHHQWKH
DFW RI XVLQJ RU FDUU\LQJ D ILUHDUP DQG WKH DFW RI XVLQJ RU
FDUU\LQJD PDFKLQHJXQ LVERWKVXEVWDQWLYHDQGVXEVWDQWLDOD
FRQFOXVLRQWKDWVXSSRUWVD VHSDUDWHFULPH LQWHUSUHWDWLRQ,G
DW
7KH$SSUHQGLFDVHPDGHDUDGLFDOGHSDUWXUHIURPWKH-RQHV
DQG&DVWLOORFDVHV,Q$SSUHQGLWKH6XSUHPH&RXUWE\SDVVHG
WKHVWHSRIGHWHUPLQLQJOHJLVODWLYHLQWHQWKROGLQJWKDWWKHUH
ZDVQRDPELJXLW\LQWKH1HZ-HUVH\VWDWXWHLQTXHVWLRQDQG
WKDW WKHUHIRUH >W@KH TXHVWLRQ ZKHWKHU $SSUHQGL KDG D
FRQVWLWXWLRQDOULJKWWRKDYHDMXU\ILQGVXFKELDVRQWKHEDVLV
RI SURRI EH\RQG D UHDVRQDEOH GRXEW LV VWDUNO\ SUHVHQWHG
$SSUHQGL Y 1HZ -HUVH\ 6&W
+DYLQJIUHHGLWVHOIIURPWKHVWULFWXUHVRIOHJLVODWLYHLQWHQWWKH
&RXUW WKHQ KHOG TXRWLQJ LWV SULRU GHFLVLRQ LQ -RQHV WKDW
XQGHUWKH'XH3URFHVV&ODXVHRIWKH)LIWK$PHQGPHQWDQG
WKHQRWLFHDQGMXU\WULDOJXDUDQWHHVRIWKH6L[WK$PHQGPHQW
DQ\ IDFW RWKHU WKDQ SULRU FRQYLFWLRQ WKDW LQFUHDVHV WKH
PD[LPXP SHQDOW\ IRU D FULPH PXVW EH FKDUJHG LQ DQ
LQGLFWPHQW VXEPLWWHG WR D MXU\ DQG SURYHQ EH\RQG D
UHDVRQDEOHGRXEW ,GDW TXRWLQJ-RQHV86DW
7KH&RXUWUHVWHGWKLVUXOLQJRQWKHKLVWRULFDODEVHQFHRI
D GLVWLQFWLRQ EHWZHHQ HOHPHQWV DQG VHQWHQFLQJ IDFWRUV
QRWLQJWKDWDWWKHWLPHRIRXUFRXQWU\ VIRXQGLQJDOOIDFWVDQG
FLUFXPVWDQFHVZKLFKFRQVWLWXWHGDQRIIHQVHZHUHLQFOXGHGLQ
WKHLQGLFWPHQWDQGSURYHQEHIRUHDMXU\6HHLGDW
1R 8QLWHG6WDWHVY5HEPDQQ
GHWHUPLQDWLRQDVWRZKHWKHUGHDWKUHVXOWHGVKRXOGKDYHEHHQ
GHWHUPLQHG EH\RQG D UHDVRQDEOH GRXEW UDWKHU WKDQ E\ D
SUHSRQGHUDQFHRIWKHHYLGHQFH%HFDXVHZHDJUHHWKDW-RQHV
DQGWKHVXEVHTXHQW6XSUHPH&RXUWGHFLVLRQVHODERUDWLQJRQ
-RQHV FRPSHO D ILQGLQJ WKDW WKH GHDWK UHVXOWHG EH\RQG D
UHDVRQDEOHGRXEWZHUHPDQGWKLVFDVHIRUUHVHQWHQFLQJ
)LUVW ZH DGGUHVV ZKHWKHU HOHYDWLQJ WKH JRYHUQPHQW V
EXUGHQRISURRIIURPWKDWRISUHSRQGHUDQFHRIWKHHYLGHQFHWR
UHDVRQDEOHGRXEWFRXOGLQIDFWHIIHFWWKHRXWFRPHRIWKLVFDVH
:HILQGWKDWWKHSURRILQWKLVFDVHLVRIVXFKDQDWXUHWKDWLV
SRVVLEOH IRU WKH FRXUW WR KDYH GHWHUPLQHG WKDW /HRQDUG
5HEPDQQ V GHDWK ZDV D UHVXOW RI WKH GLVWULEXWLRQ E\ D
SUHSRQGHUDQFHRIWKHHYLGHQFHEXWWKDWWKHVDPHFRXUWPD\
QRW KDYH EHHQ DEOH WR UHDFK WKH VDPH GHFLVLRQ EH\RQG D
UHDVRQDEOH GRXEW /HRQDUG 5HEPDQQ LQJHVWHG WKH KHURLQ
VXSSOLHG E\ KLV ZLIH DORQJ ZLWK VHYHUDO RWKHU QDUFRWLF
VXEVWDQFHV7KHUHZDVH[SHUWWHVWLPRQ\WKDWLQGLFDWHGWKDW
/HRQDUG5HEPDQQ VGHDWKZRXOGQRWKDYHEHHQFDXVHGE\WKH
RWKHUVXEVWDQFHVKHLQJHVWHGDORQH,QDGGLWLRQWKHUHZDV
WHVWLPRQ\WKDWDOWKRXJKLWZDVSUREDEOHWKDWWKHKHURLQDORQH
DOVRGLGQRWFDXVH5HEPDQQ VGHDWKKHURLQLVDQXQXVXDOO\
XQSUHGLFWDEOHVXEVWDQFHDQGKDVEHHQNQRZQWRFDXVHGHDWK
HYHQZKHQLQJHVWHGLQVPDOOTXDQWLWLHV7KHWHVWLPRQ\RIWKH
GRFWRUZKRSHUIRUPHGWKHDXWRSV\LQGLFDWHGWKDWWKHFDXVHRI
GHDWKZDVDPXOWLSOHGUXJRYHUGRVHRIZKLFKKHURLQZDVWKH
PRVWOHWKDOGUXJ,QYLHZRIWKLVHYLGHQFHLWLVSRVVLEOHWKDW
WKHFRXUWZRXOGKDYHFRPHWRWKHFRQFOXVLRQWKDWLWFRXOGQRW
ILQG WKDW /HRQDUG 5HEPDQQ V GHDWK ZDV FDXVHG EH\RQG D
UHDVRQDEOHGRXEWE\WKHGHIHQGDQW VGLVWULEXWLRQRIKHURLQLQ
OLJKWRI/HRQDUG V5HEPDQQFRPELQDWLRQRIWKHKHURLQZLWK
WKHRWKHUQDUFRWLFV
1H[WZHH[DPLQHZKHWKHUWKHFRXUWHPSOR\HGWKHFRUUHFW
VWDQGDUGZKLFKLWGHWHUPLQHGWKDW/HRQDUG5HEPDQQ VGHDWK
ZDVFDXVHGE\WKHGHIHQGDQW VGLVWULEXWLRQE\DSUHSRQGHUDQFH
RI WKH HYLGHQFH ,Q -RQHV Y 8QLWHG 6WDWHV 86
WKH6XSUHPH&RXUWDGGUHVVHGWKHLVVXHRIZKHWKHUWKH
IHGHUDO FDUMDFNLQJ VWDWXWH 86& † SURYLGHG D
VFKHPHIRUWKHSXQLVKPHQWRIRQHFULPHZLWKWKUHHDWWHQGDQW

-- 3 of 4 --

8QLWHG6WDWHVY5HEPDQQ 1R
VHQWHQFLQJ SURYLVLRQV RU ZKHWKHU WKH VWDWXWH DFWXDOO\
SURKLELWHG WKUHH VHSDUDWH FULPHV HDFK UHTXLULQJ D MXU\
GHWHUPLQDWLRQDQGSURRIEH\RQGDUHDVRQDEOHGRXEW$IWHU
FRQVLGHULQJWKHYDJXHODQJXDJHLQWKHVWDWXWHZKLFKGLGQRW
FOHDUO\ GHOLQHDWH ZKHWKHU WKH SURYLVLRQV DW LVVXH ZHUH
HOHPHQWV RU PHUHO\ VHQWHQFLQJ SURYLVLRQV WKH &RXUW
FRQFOXGHG WKDW LW VKRXOG FRQVWUXH WKHP DV HOHPHQWV RI WKH
FULPHLQRUGHUWRDYRLGSRVVLEOHFRQVWLWXWLRQDOSUREOHPV6HH
-RQHV86DW7KH&RXUWGLGQRWLQGLFDWHZKDW
ZRXOGKDYHEHHQWKHRXWFRPHRIWKHFDVHLI&RQJUHVVKDG
EHHQPRUHFOHDULQGHOLQHDWLQJWKHSURYLVLRQVLQTXHVWLRQDV
PHUHO\VHQWHQFLQJSURYLVLRQV7KH&RXUWGLGKRZHYHUJRRQ
WR GLVFXVV LQ JUHDW GHWDLO WKH VHULRXV FRQVWLWXWLRQDO
LPSOLFDWLRQV RI FDWHJRUL]LQJ IDFWXDO GHWHUPLQDWLRQV DV
VHQWHQFLQJSURYLVLRQVDQGWKHUHE\HURGLQJWKHSURWHFWLRQRI
WULDOE\MXU\DQGDOWHULQJWKHEXUGHQRISURRILQFDVHVZKHUHQR
MXU\WULDOZDVUHTXHVWHG 7KHILUVWTXHVWLRQEHIRUHXVLV
ZKHWKHU WKH -RQHV GHFLVLRQ DOORZV XV WR FRQVLGHU WKH
FRQVWLWXWLRQDOSUREOHPVLQWKLVFDVHHYHQLQDVLWXDWLRQZKHUH
WKHVWDWXWRU\ODQJXDJHLVQRWVRYDJXHWKDWLWUHTXLUHVDUXOLQJ
DVWRWKHLQWHQWRI&RQJUHVVZLWKUHVSHFWWRWKHVHQWHQFLQJ
SURYLVLRQV$OWKRXJK&RQJUHVVZDVIDLUO\FOHDULQGHOLQHDWLQJ
WKDWWKHLIGHDWKUHVXOWVSURYLVLRQLVDVHQWHQFLQJSURYLVLRQ
ZHGRQRWEHOLHYHWKH-RQHVGHFLVLRQUHTXLUHVXVWRHQGRXU
LQTXLU\DWWKLVSRLQW7KHIDFWXDOVLWXDWLRQDWKDQGVRFOHDUO\
SDUDOOHOVWKHFRQVWLWXWLRQDOSUREOHPVEHIRUHWKH&RXUWLQ-RQHV
WKDW ZH FRQFOXGH WKDW ZH PXVW FRQVLGHU WKH FRQVWLWXWLRQDO
UDPLILFDWLRQVRIFODVVLI\LQJWKHVHIDFWXDOGHWHUPLQDWLRQVDV
VHQWHQFLQJSURYLVLRQVUHJDUGOHVVRIWKHFODULW\RI&RQJUHVV V
LQWHQW LQ FODVVLI\LQJ WKHP DV VHQWHQFLQJ SURYLVLRQV ,Q
DGGLWLRQWZRPRUHUHFHQW6XSUHPH&RXUWGHFLVLRQV&DVWLOOR
Y8QLWHG6WDWHV6&W DQG$SSUHQGLY1HZ
-HUVH\6&W ERWKUHLQIRUFHRXUFRQFOXVLRQ
7KHIHGHUDOFDUMDFNLQJVWDWXWHDWLVVXHLQ-RQHV86&
†SURYLGHGWKDWLIWKHSURVHFXWLRQSURYHGERWKLQWHQWWR
FDXVHGHDWKRUVHULRXVERGLO\KDUPDQGWKHDFWXDOWUDQVSRUWRU
UHFHLSWRIDPRWRUYHKLFOHZKLFKZDVWDNHQE\IRUFHYLROHQFH
RU LQWLPLGDWLRQ WKHQ \HDUV LPSULVRQPHQW ZDV WKH
DSSOLFDEOHSXQLVKPHQW,QDGGLWLRQWKHVWDWXWHSURYLGHGWKDW
1R 8QLWHG6WDWHVY5HEPDQQ
LIVHULRXVERGLO\LQMXU\UHVXOWHGWKHSHULRGRILQFDUFHUDWLRQ
URVHWR\HDUVDQGLIGHDWKUHVXOWHGWKHSXQLVKPHQWURVHWR
OLIHLPSULVRQPHQWRUDVHQWHQFHRIGHDWK7KH6XSUHPH&RXUW
KHOGWKDWDOORZLQJDFRXUWWRPDNHDIDFWXDOGHWHUPLQDWLRQ
VXFKDVZKHWKHUVHULRXVERGLO\LQMXU\ZDVFDXVHGE\WKHFULPH
RUE\VRPHRWKHUIDFWRUZKLFKLQWHUPLQFUHDVHGWKHSHQDOW\
IRUDFULPHVHULRXVO\LPSOLFDWHGWKH'XH3URFHVV&ODXVHRI
WKH)LIWK$PHQGPHQWDQGWKHQRWLFHDQGMXU\WULDOJXDUDQWHHV
RI WKH 6L[WK $PHQGPHQW 7KH &RXUW QRWHG WKDW WKRVH
FRQVWLWXWLRQDOSURYLVLRQVKDYHKLVWRULFDOO\VXJJHVWHGWKDWDQ\
IDFW RWKHUWKDQSULRUFRQYLFWLRQ WKDWLQFUHDVHGWKHPD[LPXP
SHQDOW\ IRU D FULPH PXVW EH FKDUJHG LQ WKH LQGLFWPHQW
VXEPLWWHGWRDMXU\DQGSURYHQEH\RQGDUHDVRQDEOHGRXEW
6HH -RQHV 86 DW Q ,Q IDFW WKH -RQHV &RXUW
ZDUQHG RI D VHW RI FLUFXPVWDQFHV VLPLODU WR WKH IDFWXDO
VFHQDULREHIRUHXVWRGD\ZKHQLWVWDWHGWKDWLQVRPHFDVHVD
MXU\ ILQGLQJ RI IDFW QHFHVVDU\ IRU D PD[LPXP \HDU
VHQWHQFH ZRXOG PHUHO\ RSHQ WKH GRRU WR D MXGLFLDO ILQGLQJ
VXIILFLHQWIRUOLIHLPSULVRQPHQW-RQHV86DW
,Q &DVWLOOR Y 8QLWHG 6WDWHV 6&W WKH
6XSUHPH &RXUW DJDLQ DGGUHVVHG WKH LVVXH RI IDFWXDO
VHQWHQFLQJIDFWRUVZKLFKLQFUHDVHDGHIHQGDQW VSXQLVKPHQW
DIWHUSURRIEHIRUHDMXGJHEDVHGXSRQDSUHSRQGHUDQFHRIWKH
HYLGHQFH,QWKDWFDVHWKHGHIHQGDQWVZHUHLQGLFWHGRIWKH
FULPHRIPXUGHULQJIHGHUDORIILFHUV%\VWDWXWHIRXQGDW
86& † F WKH FRXUW ZDV WR GHWHUPLQH ZKHWKHU WKH
GHIHQGDQWVXVHGRUFDUULHGDILUHDUPZKLFKSURYLGHGIRUDQ
LQFUHDVHLQSXQLVKPHQWRI\HDUV,IWKHFRXUWGHWHUPLQHG
WKDW SDUWLFXODU ILUHDUPV ZHUH XVHG VXFK DV PDFKLQH JXQV
GHVWUXFWLYHGHYLFHVRUILUHDUPVZLWKVLOHQFHUVRUPXIIOHUVRQ
WKHPWKHVHQWHQFHLQFUHDVHGWRDPDQGDWRU\WKLUW\\HDUV7KH
FRXUWVSHFLILFDOO\LQVWUXFWHGWKHMXU\WKDWLWZDVWKHSURYLQFH
RIWKHFRXUWDVDSDUWRIWKHVHQWHQFLQJSURFHHGLQJVWRPDNH
WKHGHWHUPLQDWLRQFRQFHUQLQJZKHWKHUWKHGHIHQGDQWVXVHG
ILUHDUPVDQGWKHW\SHVRIILUHDUPVHPSOR\HG,QHYDOXDWLQJ
WKLV VWDWXWH LQ OLJKW RI WKH -RQHV GHFLVLRQ WKH &RXUW DJDLQ
H[DPLQHG WKH OLWHUDO ODQJXDJH DQG VWUXFWXUH RI WKH VWDWXWH
LWVHOI,QFRPLQJWRWKHFRQFOXVLRQWKDWWKHIDFWRUVDWLVVXH
ZHUHHOHPHQWVUDWKHUWKDQVHQWHQFLQJIDFWRUVWKH&RXUW

-- 4 of 4 --