02a0142p.06

00-4470Court of Appeals for the Sixth Circuit24.04.2002

Gesamter Gesetzestext

7KH +RQRUDEOH -DPHV 6 *ZLQ 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU WKH
1RUWKHUQ 'LVWULFW RI 2KLR 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
.(17/$1' (/.+251 &2$/
&25325$7,21
3HWLWLRQHU
Y
12$+ +$// ',5(&725
2)),&( 2) :25.(56¶
&203(16$7,21 352*5$06
81,7(' 67$7(6 '(3$570(17
2) /$%25
5HVSRQGHQWV
;!

1
1R
2Q3HWLWLRQIRU5HYLHZRIDQ2UGHU
RIWKH%HQHILWV5HYLHZ%RDUG
8QLWHG6WDWHV'HSDUWPHQWRI/DERU
1R%/$
$UJXHG-DQXDU\
'HFLGHGDQG)LOHG$SULO
%HIRUH-21(6DQG&2/(&LUFXLW-XGJHV*:,1'LVWULFW
-XGJH

-- 1 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' /RLV $ .LWWV %$,5' %$,5' 36&
3LNHYLOOH .HQWXFN\ IRU 3HWLWLRQHU 6WHSKHQ $ 6DQGHUV
$33$/$&+,$1 5(6($5&+ '()(16( )81' 2)
.(178&.<,1&3UHVWRQEXUJ.HQWXFN\0DU\)RUUHVW
'R\OH 81,7(' 67$7(6 '(3$570(17 2) /$%25
:DVKLQJWRQ'&IRU5HVSRQGHQWV21%5,()/RLV$
.LWWV %$,5' %$,5' 36& 3LNHYLOOH .HQWXFN\ IRU
3HWLWLRQHU 6WHSKHQ $ 6DQGHUV $33$/$&+,$1
5(6($5&+ '()(16()81'2).(178&.<,1&
3UHVWRQEXUJ .HQWXFN\ &KULVWLDQ 3 %DUEHU 81,7('
67$7(6'(3$570(172)/$%252)),&(2)7+(
62/,&,725:DVKLQJWRQ'&IRU5HVSRQGHQWV
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
*:,1 'LVWULFW -XGJH :LWK WKLV DSSHDO ZH GHFLGH
ZKHWKHUWKH%HQHILWV5HYLHZ%RDUGRIWKH86'HSDUWPHQW
RI /DERU WKH ³%RDUG´ HUUHG ZKHQ LW XSKHOG DQ
$GPLQLVWUDWLYH /DZ -XGJH¶V ³$/-¶V´ GHFLVLRQ WR DZDUG
5HVSRQGHQW1RDK+DOOEHQHILWVXQGHUWKH&RDO0LQH+HDOWK
DQG6DIHW\$FWDVDPHQGHGE\WKH%ODFN/XQJ%HQHILWV$FW
RI86&††± WKH³$FW´ :HDOVR
GHFLGH ZKHWKHU WKH %HQHILWV 5HYLHZ %RDUG HUUHG ZKHQ LW
IRXQG 3HWLWLRQHU .HQWODQG (ONKRUQ &RDO &RUSRUDWLRQ
³.HQWODQG´ WREHWKHUHVSRQVLEOHRSHUDWRU
3HWLWLRQHU .HQWODQG (ONKRUQ DSSHDOV WKH GHFLVLRQ RI WKH
%RDUGJUDQWLQJ5HVSRQGHQW1RDK+DOODFRDOPLQHUEHQHILWV
XQGHUWKH%ODFN/XQJ%HQHILWV$FWRI.HQWODQGDOOHJHV
WKDWWKHHYLGHQFHGLGQRWVXSSRUW+DOO¶VFODLPWREHQHILWVDQG
WKDWWKH$GPLQLVWUDWLYH/DZ-XGJHHUUHGLQILQGLQJ.HQWODQG
WKH FRUUHFW UHVSRQVLEOH RSHUDWRU 7KH 'LUHFWRU 2IILFH RI

-- 2 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
UHVSRQVLEOHRSHUDWRU)XUWKHU+DOO¶VHQWLWOHPHQWWREHQHILWV
KDVEHHQIXOO\OLWLJDWHGRQLWVPHULWV/LNHWKHFRXUWLQ7UDFH
)RUNZHDUHXQZLOOLQJWRXSVHWWKDWILQGLQJ
7KLV &RXUW¶V GHFLVLRQ LQ 'LUHFWRU 2IILFH RI :RUNHUV¶
&RPSHQVDWLRQ3URJUDPVY2JOHED\)G WK&LU
LVGLVWLQJXLVKDEOHIURPWKHSUHVHQWFDVH,Q2JOHED\
WKLV&RXUWDOORZHGWKH'LUHFWRUWRLGHQWLI\DQHZUHVSRQVLEOH
RSHUDWRUWHQ\HDUVDIWHUWKHILOLQJRIWKHLQLWLDOFODLP6HHLG
DW7KLV&RXUWDOORZHGWKLVLQODUJHSDUWEHFDXVH³WKH
FODLP KDG QRW DW WKDW WLPH EHHQ ILQDOO\ DGMXGLFDWHG´ ,G
$GGLWLRQDOO\ EHFDXVH WKH QHZ RSHUDWRU ZRXOG ERWK KDYH
DFFHVVWRWKHHYLGHQFHGHYHORSHGLQWKHFDVHDQGDFKDQFHWR
FKDOOHQJHWKHFODLPDQW¶VHQWLWOHPHQWWREHQHILWVJLYHQWKDWQR
KHDULQJRQWKHPHULWVKDG\HWWDNHQSODFHWKHDGGLWLRQRID
QHZRSHUDWRUZRXOGQRWSUHMXGLFHWKHSDUWLHV6HHLGDW
,QWKHSUHVHQWFDVHKRZHYHU+DOO¶VFODLPKDVEHHQIXOO\
OLWLJDWHGRQLWVPHULWVDQGWRDOORZIXUWKHULQTXLU\LQWRWKH
UHVSRQVLEOHRSHUDWRULVVXHZRXOGSUHMXGLFHWKHSDUWLHV:KLOH
ZHGRQRWKROGWKDWDFDVHFDQQHYHUEHUHPDQGHGWRQDPHD
QHZRSHUDWRUZHGRKRZHYHUKROGWKDWUHPDQGFDQQRWFRPH
VRODWHLQWKHSURFHHGLQJV
,9&RQFOXVLRQ
:H$)),50WKH$/-¶VGHFLVLRQILQGLQJ+DOOHQWLWOHGWR
EHQHILWVXQGHUWKH%ODFN/XQJ%HQHILWV$FW:H5(9(56(
WKH $/-¶V GHFLVLRQ ILQGLQJ .HQWODQG WR EH WKH SURSHU
UHVSRQVLEOHRSHUDWRUDQGDFFRUGLQJO\5(0$1'WKDWLVVXHWR
WKH %HQHILWV 5HYLHZ %RDUG IRU SURFHHGLQJV LQ DFFRUGDQFH
ZLWKWKLVGHFLVLRQ
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

:RUNHUV¶&RPSHQVDWLRQ3URJUDPV86'HSDUWPHQWRI/DERU
³'LUHFWRU´ MRLQVWKLVDFWLRQDVD5HVSRQGHQWSDUW\LQLQWHUHVW
%HFDXVH WKHUH ZDV VXEVWDQWLDO HYLGHQFH WR VXSSRUW WKH
$/-¶VGHWHUPLQDWLRQWKDW+DOOLVWRWDOO\GLVDEOHGEHFDXVHRI
SQHXPRFRQLRVLV ³EODFN OXQJ GLVHDVH´ ZH $)),50 WKH
$/-¶VGHFLVLRQRQWKDWLVVXH+RZHYHUEHFDXVHWKHHYLGHQFH
ZDV LQVXIILFLHQW WR FRQFOXGH WKDW .HQWODQG ZDV WKH
UHVSRQVLEOHRSHUDWRUZH5(9(56(DQG5(0$1' WR WKH
%HQHILWV5HYLHZ%RDUGIRUSURFHHGLQJVLQDFFRUGDQFHZLWK
WKLVGHFLVLRQ
,%DFNJURXQG
1RDK+DOOZDVERUQRQ-XQH+HZRUNHGLQFRDO
PLQLQJIRUPXFKRIKLVDGXOWOLIH+DOO ILOHGXQVXFFHVVIXO
FODLPV IRU EHQHILWV XQGHU WKH %ODFN /XQJ %HQHILWV $FW LQ
DQGWKHODVWRIZKLFKWKH'LUHFWRUGHQLHG
RQ 2FWREHU %\ +DOO VD\V KH H[SHULHQFHG
VKRUWQHVVRIEUHDWKFKHVWSDLQDQGGLIILFXOW\ZDONLQJORQJ
GLVWDQFHVDQGFOLPELQJVWDLUV7KDWVDPH\HDU+DOOVXIIHUHG
GLVDEOLQJLQMXULHVLQDURFNIDOOZKLOHZRUNLQJIRU'HVSDUDGR
)XHOV ,QF ³'HVSDUDGR )XHOV´ DQG KDV QRW ZRUNHG VLQFH
WKHQ -$DW
2Q6HSWHPEHU+DOODJDLQILOHGIRUEHQHILWVXQGHU
WKH%ODFN/XQJ%HQHILWV$FW7KH'LUHFWRULQLWLDOO\GHQLHG
WKLVFODLPRQ-DQXDU\7KH'LUHFWRUGHQLHGEHQHILWV
DWWKDWWLPHEHFDXVH+DOOGLGQRWGHPRQVWUDWHWKDWEODFNOXQJ
GLVHDVHWRWDOO\GLVDEOHGKLP -$DW± +DOODSSHDOHG
WKHGHFLVLRQ -$DW 2Q-XO\WKH'LUHFWRU
KHOG DQ LQIRUPDO FRQIHUHQFH ,Q D SURSRVHG GHFLVLRQ DQG
RUGHU WKH 'LUHFWRU IRXQG WKDW +DOO GLG KDYH EODFN OXQJ
GLVHDVH WKDW FRDO PLQH ZRUN FDXVHG WKH GLVHDVH WKDW +DOO
WLPHO\ILOHGKLVFODLPWKDW+DOOKDGZRUNHGDWOHDVWILIWHHQ
\HDUV LQ FRDO PLQHV WKDW .HQWODQG ZDV WKH UHVSRQVLEOH
RSHUDWRULQWKHFODLPDQGWKDW+DOO¶VPRVWUHFHQWSHULRGRI
FXPXODWLYHFRDOPLQHHPSOR\PHQWWRWDOLQJDWOHDVWRQH\HDU
ZDV ZLWK.HQWODQG7KH'LUHFWRUKRZHYHUGHQLHG+DOO¶V

-- 3 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
2Q -DQXDU\ UHYLVLRQV WR &)5 SW EHFDPH
HIIHFWLYH 6HH &)5 † $FFRUGLQJ WR &)5 †
WKH UHYLVHG SURFHGXUHV RI SDUW DSSO\ WR DOO FODLPV SHQGLQJ RQ -DQXDU\
ZLWK FHUWDLQ H[FHSWLRQV )RU WKH H[FHSWHG VHFWLRQV WKH &RGH RI
)HGHUDO 5HJXODWLRQV GLUHFWV WKDW WKH YHUVLRQ ³UHYLVHG DV RI $SULO ´
EH DSSOLHG &)5 † F 0DQ\ RI WKH &RGH RI )HGHUDO
5HJXODWLRQV SURYLVLRQV DW LVVXH LQ WKLV FDVH IDOO XQGHU WKH H[FHSWLRQ DQG
WKXV WKH &RXUW FLWHV WR WKH YHUVLRQ ZKHQ DSSURSULDWH
7KH FXUUHQW YHUVLRQ RI &)5 † H[SODLQV WKH DSSOLFDELOLW\ RI
SDUW RI WKH &RGH RI )HGHUDO 5HJXODWLRQV WR SHQGLQJ FDVHV ,W VWDWHV
WKDW ³>W@KLV SDUW LV DSSOLFDEOH WR WKH DGMXGLFDWLRQ RI DOO FODLPV ILOHG DIWHU
0DUFK ´ &)5 † 7KHUHIRUH WKH &RXUW
DSSOLHV WKH FXUUHQW YHUVLRQ RI SDUW WR WKLV FDVH
FODLPIRUEHQHILWVEHFDXVHKHIRXQGWKDW+DOOGLGQRWVKRZ
WRWDOGLVDELOLW\DQGEHFDXVH+DOOKDGQRWVKRZQDPDWHULDO
FKDQJHVLQFHWKHHDUOLHUGHQLDORIEHQHILWV -$DW±
2Q $XJXVW +DOO UHTXHVWHG D IRUPDO KHDULQJ
+DYLQJ UHFHLYHG +DOO¶V UHTXHVW WKH 'HSDUWPHQW RI /DERU
WUDQVIHUUHG+DOO¶VFODLPWRWKH2IILFHRI$GPLQLVWUDWLYH/DZ
-XGJHVIRUDKHDULQJ2Q0D\$GPLQLVWUDWLYH/DZ
-XGJH 7KRPDV 3KDOHQ -U FRQYHQHG D KHDULQJ WR UHYLHZ
+DOO¶VFODLP
,QD6HSWHPEHUGHFLVLRQWKH$/-DZDUGHG+DOO
EODFNOXQJEHQHILWV,QWKDWGHFLVLRQWKH$/-IRXQGWKDW+DOO
ZRUNHGLQFRDOPLQHVIRUILIWHHQ\HDUV -$DW WKDW+DOO
KDV FRDO ZRUNHUV¶ SQHXPRFRQLRVLV -$ DW WKDW WKH
SQHXPRFRQLRVLVDURVHRXWRI+DOO¶VZRUNDVDFRDOPLQHU -$
DW WKDW+DOOLVWRWDOO\GLVDEOHGEHFDXVHRIWKHGLVHDVH -$
DW ± DQG WKDW VXFK D ILQGLQJ RI WRWDO GLVDELOLW\ LV D
³PDWHULDOFKDQJHLQFRQGLWLRQV´IURPDSULRUGHQLDORIEHQHILWV
XQGHU&)5† G -$DW 7KH
$/-DOVRIRXQGWKDW.HQWODQGZDVWKHUHVSRQVLEOHRSHUDWRU
-$DW ,QVHOHFWLQJ.HQWODQGDVWKHUHVSRQVLEOHRSHUDWRU
WKH$/-IRXQGWKDW+DOO¶VPRUHUHFHQWHPSOR\HUV'HVSDUDGR
DQG &ROHPDQ &ROHPDQ 0LQLQJ &RPSDQ\ ,QF
³&ROHPDQ´ ZHUHQRWUHVSRQVLEOHEHFDXVHWKH\HPSOR\HG
+DOOIRUOHVVWKDQDFXPXODWLYH\HDU -$DW
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

QRWEHGHILQLWLYHO\LGHQWLILHG´7UDFH)RUN)GDW
)XUWKHUWKH)RXUWK&LUFXLWXSKHOGWKH%RDUG¶VGHFLVLRQQRWWR
UHPDQGWKHFDVHIRUWKHDSSRLQWPHQWRIDQRWKHUUHVSRQVLEOH
RSHUDWRU6HHLGDW7KHFRXUWLQ7UDFH)RUNVWDWHGWKDW
WKH'LUHFWRUPXVWUHVROYHWKHUHVSRQVLEOHRSHUDWRULVVXH
LQDSUHOLPLQDU\SURFHHGLQJRUHOVHSURFHHGDJDLQVWDOO
SRWHQWLDO RSHUDWRUV DW HDFK VWDJH RI WKH FODLP
DGMXGLFDWLRQWRSUHYHQWSLHFHPHDOOLWLJDWLRQDQGDYRLG
GXHSURFHVVFRQFHUQV,IWKLVFDVHZHUHUHPDQGHGDQG
DQRWKHUUHVSRQVLEOHRSHUDWRUQDPHGWKDWRSHUDWRUZRXOG
EHHQWLWOHGWRFKDOOHQJH>WKHFODLPDQW¶V@HQWLWOHPHQWWR
EHQHILWV :H DUH XQZLOOLQJ WR SRWHQWLDOO\ XSVHW WKH
ILQGLQJWKDW>WKHFODLPDQW@LVHQWLWOHGWREHQHILWVDPDWWHU
DOUHDG\IXOO\OLWLJDWHGRQWKHPHULWV
,GDW LQWHUQDOFLWDWLRQRPLWWHG
,Q9HQLFDVVDWKH7KLUG&LUFXLWDOVRUHIXVHGWRDOORZWKH
IXUWKHU FRQVLGHUDWLRQ RI WKH UHVSRQVLEOH RSHUDWRU LVVXH ,W
XSKHOGWKHDVVLJQPHQWRIOLDELOLW\WRWKH7UXVW)XQGEHFDXVH
WKH'LUHFWRU³GLGQRWPDNHDWLPHO\GHVLJQDWLRQRIWKHSURSHU
UHVSRQVLEOHRSHUDWRUQRUGLGLWHYHQPDNHDWLPHO\DWWHPSWWR
FRUUHFW LWV PLVGHVLJQDWLRQ RU WR DGG >RWKHU@ SRWHQWLDO
UHVSRQVLEOHRSHUDWRU>V@´9HQLFDVVD)GDW
7KH9HQLFDVVDFRXUWIRXQGLWVLJQLILFDQWWKDWWKH'LUHFWRU
KDGVXIILFLHQWHYLGHQFHIURPHDUO\LQWKHSURFHHGLQJVWRQDPH
WKH SURSHU UHVSRQVLEOH RSHUDWRU DQG \HW GLG QRW VHW IRUWK
LQIRUPDWLRQ VXIILFLHQW WR LGHQWLI\ WKH UHVSRQVLEOH RSHUDWRU
6HH LG DW ,Q GHFLGLQJ WKDW WKH FDVH VKRXOG QRW EH
UHPDQGHGWKHFRXUWIRXQGLWVLJQLILFDQWWKDWWKHFODLPKDG
DOUHDG\EHHQIXOO\DGMXGLFDWHGRQLWLWVPHULWV6HHLG
,Q WKH SUHVHQW FDVH WKH 'LUHFWRU KDV VLPLODUO\ IDLOHG WR
GHYHORS DGHTXDWH HYLGHQFH UHJDUGLQJ WKH GHVLJQDWLRQ RI D
UHVSRQVLEOH RSHUDWRU %HFDXVH WKH 'LUHFWRU GLG QRW RIIHU
HYLGHQFHVXEVWDQWLDOHQRXJKWRVKRZWKDW*UDVV\&UHHNFRXOG
QRW EH KHOG UHVSRQVLEOH DV D VXFFHVVRU WR &ROHPDQ WKH
'LUHFWRU IDLOHG WR VKRZ WKDW .HQWODQG ZDV WKH SURSHU

-- 4 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
WRZKLFKRQHLVSURSHUO\UHVSRQVLEOHIRUEHQHILWVLQRQH
SURFHHGLQJ:HKROGKRZHYHUWKDWGXHSURFHVVDVZHOO
DVWKHHIILFLHQWDGPLQLVWUDWLRQRIWKH$FWFRPSHOVWKLV
UHVXOW
5HPDQG IRU UHFRQVLGHUDWLRQ RI WKH RSHUDWRU LVVXH
ZRXOG EH WDQWDPRXQW WR UHOLWLJDWLQJ WKH FODLP ,I WKH
'HSDUWPHQWLGHQWLILHVDQRWKHUUHVSRQVLEOHRSHUDWRUWKHQ
WKDWRSHUDWRULVHQWLWOHGWRFRQWHVWWKHFODLPGHYHORSLWV
RZQ HYLGHQFH UHTXHVW D KHDULQJ HWF XQWLO LW KDV
H[KDXVWHG WKH IXOO JDPXW RI DYDLODEOH SURFHGXUHV IRU
DGMXGLFDWLQJHQWLWOHPHQW7KLVSLHFHPHDODSSURDFK
HQFRXUDJHV WZR XQGHVLUDEOH UHVXOWV )LUVW D FODLPDQW
ZKR KDV HVWDEOLVKHG HQWLWOHPHQW LQ WKH ILUVW URXQG RI
SURFHHGLQJVPD\ORVHKLVDZDUGLQDODWHUURXQGDJDLQVW
DQRWKHU RSHUDWRU 6HFRQG SLHFHPHDO OLWLJDWLRQ
REYLRXVO\ LV QRW FRPSDWLEOH ZLWK WKH HIILFLHQW
DGPLQLVWUDWLRQRIWKH$FWDQGH[SHGLWLRXVSURFHVVLQJRI
FODLPV
,GDW IRRWQRWHRPLWWHG
7KRXJK ZH DUH QRW ERXQG E\ WKH %RDUG¶V GHFLVLRQ LQ
&UDEWUHHLWLVQHYHUWKHOHVVSHUVXDVLYHEHFDXVHRIWKHIDFWXDO
VLPLODULWLHV,Q&UDEWUHHWKH%RDUGUHIXVHGWRUHPDQGIRU
IXUWKHU FRQVLGHUDWLRQ RI WKH RSHUDWRU LVVXH EHFDXVH WKH
'LUHFWRUKDGDPSOHRSSRUWXQLW\WRGHYHORSHYLGHQFHDERXWWKH
SURSHUUHVSRQVLEOHRSHUDWRUDQGIDLOHGWRGRVR)XUWKHUWKH
FODLPKDGEHHQDGMXGLFDWHGRQLWVPHULWVDWWKHWLPHWKH%RDUG
UHYLHZHGWKH$/-¶VGHFLVLRQ7KHUHIRUHWKH%RDUGGHFLGHG
WKDW ³WKH 'HSDUWPHQW PXVW UHVROYH WKH RSHUDWRU LVVXH LQ D
SUHOLPLQDU\SURFHHGLQJDQGRUSURFHHGDJDLQVWDOOSXWDWLYH
UHVSRQVLEOH RSHUDWRUV DW HYHU\ VWDJH RI WKH FODLPV
DGMXGLFDWLRQ´,GDW LQWHUQDOFLWDWLRQRPLWWHG
2WKHUFLUFXLWVKDYHIROORZHGWKHUHDVRQLQJRI&UDEWUHHLQ
VLPLODUFLUFXPVWDQFHV,Q7UDFH)RUNWKH)RXUWK&LUFXLWKHOG
WKDW WKH %RDUG SURSHUO\ GLVPLVVHG 7UDFH )RUN DV WKH
UHVSRQVLEOH RSHUDWRU EHFDXVH WKH 'LUHFWRU ³LQDGHTXDWHO\
GHYHORSHGWKHHYLGHQFHVRWKDWWKHUHVSRQVLEOHRSHUDWRUFRXOG
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

.HQWODQG DSSHDOHG WKH $/-¶V GHFLVLRQ WR WKH %HQHILWV
5HYLHZ %RDUG 7KH %RDUG DIILUPHG WKH $/-¶V GHFLVLRQ
GHVLJQDWLQJ.HQWODQGDVWKHUHVSRQVLEOHRSHUDWRUDQGILQGLQJ
+DOO HQWLWOHG WR EODFN OXQJ EHQHILWV -$ DW
.HQWODQGQRZDSSHDOVWRWKLV&RXUW
,,6WDQGDUGRI5HYLHZ
7KLV&RXUWPXVWDIILUPWKH%RDUG¶VGHFLVLRQLIWKH%RDUG
KDVQRWFRPPLWWHGDQ\OHJDOHUURURUH[FHHGHGLWVVFRSHRI
UHYLHZ RI WKH $/-¶V GHWHUPLQDWLRQ 6HH *OHQ &RDO &R Y
6HDOV)G WK&LU 7KH&RXUWUHYLHZV
WKH $/-¶V GHFLVLRQ RQO\ WR GHFLGH ZKHWKHU VXEVWDQWLDO
HYLGHQFHVXSSRUWVLWDQGZKHWKHULWLVLQDFFRUGDQFHZLWKWKH
DSSOLFDEOHODZ6HHLG:HGRQRWUHZHLJKWKHHYLGHQFHRU
VXEVWLWXWHRXUMXGJPHQWIRUWKDWRIWKH$/-6HH*UD\Y6/&
&RDO&R)G WK&LU 7KXVDVORQJDV
WKHHYLGHQFHVXSSRUWVWKH$/-¶VFRQFOXVLRQVWKH&RXUWZLOO
QRWUHYHUVHWKH$/-¶VGHFLVLRQ³HYHQLIWKHIDFWVSHUPLWDQ
DOWHUQDWLYHFRQFOXVLRQ´<RXJKLRJKHQ\ 2KLR&RDO&RY
:HEE)G WK&LU
:HUHYLHZLVVXHVRIODZGHQRYR6HH&UHHN&RDO&RY
%DWHV)G WK&LU
3HWLWLRQHU .HQWODQG UDLVHV WZR LVVXHV RQ DSSHDO )LUVW
.HQWODQG FODLPV WKDW WKH $/- HUUHG LQ ILQGLQJ +DOO WRWDOO\
GLVDEOHGEHFDXVHRIEODFNOXQJGLVHDVH6HFRQG.HQWODQG
FODLPV WKDW WKH $/- HUUHG LQ ILQGLQJ .HQWODQG WR EH WKH
UHVSRQVLEOHRSHUDWRU
,,,'LVFXVVLRQ
$7RWDO'LVDELOLW\'XHWR%ODFN/XQJ'LVHDVH
+DOOILOHGKLVSUHVHQWFODLPLQPRUHWKDQRQH\HDU
DIWHU WKH ILQDO GHQLDO RI DQ HDUOLHU FODLP LQ +DOO¶V
SUHVHQW FODLP LV WKHUHIRUH D GXSOLFDWH RI DQ HDUOLHU FODLP
UDWKHU WKDQ D UHTXHVW IRU PRGLILFDWLRQ $FFRUGLQJ WR
&)5† G ³LIWKHHDUOLHUFODLPKDVEHHQ

-- 5 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
ILQDOO\ GHQLHG WKH ODWHU FODLP VKDOO DOVR EH GHQLHG RQ WKH
JURXQGV RI WKH SULRU GHQLDO XQOHVV WKHUH KDV EHHQ D
PDWHULDOFKDQJHLQFRQGLWLRQV´7RILQGWKDWDPDWHULDO
FKDQJHLQFRQGLWLRQKDVRFFXUUHGWKH$/-
PXVW FRQVLGHU DOO RI WKH QHZ HYLGHQFH IDYRUDEOH DQG
XQIDYRUDEOHDQGGHWHUPLQHZKHWKHUWKHPLQHUKDVSURYHQ
DW OHDVW RQH RI WKH HOHPHQWV RI HQWLWOHPHQW SUHYLRXVO\
DGMXGLFDWHG DJDLQVW KLP ,I WKH PLQHU HVWDEOLVKHV WKH
H[LVWHQFH RI WKDW HOHPHQW KH KDV GHPRQVWUDWHG DV D
PDWWHURIODZDPDWHULDOFKDQJH7KHQWKH$/-PXVW
FRQVLGHUZKHWKHUDOORIWKHUHFRUGHYLGHQFH LQFOXGLQJ
WKDW VXEPLWWHG ZLWK WKH SUHYLRXV FODLPV VXSSRUWV D
ILQGLQJRIHQWLWOHPHQWWREHQHILWV
6KDURQGDOH &RUS Y 5RVV )G ± WK &LU
7KH$/-¶VFRQFOXVLRQWKDW+DOOLVQRZWRWDOO\GLVDEOHG
EHFDXVHRIEODFNOXQJGLVHDVHHVWDEOLVKHGDPDWHULDOFKDQJHLQ
FRQGLWLRQ
2QDSSHDO.HQWODQGFKDOOHQJHVRQO\ZKHWKHU+DOOLVWRWDOO\
GLVDEOHG,WGRHVQRWFKDOOHQJHWKDW+DOOVXIIHUVIURPEODFN
OXQJGLVHDVHWKDWKLVGLVHDVHDURVHIURPPLQLQJHPSOR\PHQW
RUWKDWWKHWRWDOGLVDELOLW\LVWKHUHVXOWRIEODFNOXQJGLVHDVH
:HDFFRUGLQJO\OLPLWRXUUHYLHZWRWKHTXHVWLRQRIZKHWKHU
VXEVWDQWLDOHYLGHQFHVXSSRUWVWKH$/-¶VILQGLQJWKDW+DOOLV
WRWDOO\GLVDEOHGEHFDXVHRIEODFNOXQJGLVHDVH
6HFWLRQGHILQHV³WRWDOGLVDELOLW\´6HH&)5
† E 7RVKRZ³WRWDOGLVDELOLW\´DPLQHU
PXVWVKRZWKDWKLVGLVHDVHSUHYHQWVKLPIURP³SHUIRUPLQJ
KLV XVXDO FRDO PLQH ZRUN´ DQG SUHYHQWV KLP ³>I@URP
HQJDJLQJ LQ JDLQIXO HPSOR\PHQW LQ WKH LPPHGLDWH DUHD RI
KLVUHVLGHQFHUHTXLULQJWKHVNLOOVRUDELOLWLHVFRPSDUDEOH
WRWKRVHRIDQ\HPSOR\PHQWLQPLQHRUPLQHVLQZKLFKKH
SUHYLRXVO\HQJDJHGZLWKVRPHUHJXODULW\RYHUDVXEVWDQWLDO
SHULRGRIWLPH´&)5† E L LL
7KHUHJXODWLRQVWKHQOLVWDVHULHVRIILYHPHGLFDOFULWHULDXQGHU
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

UHFHQWSHULRGVRIFXPXODWLYHHPSOR\PHQWRIQRWOHVVWKDQ
\HDU´&)5† D :HGRQRW
KRZHYHU UHPDQG WKLV FDVH WR QDPH D QHZ UHVSRQVLEOH
RSHUDWRURUIRUIXUWKHULQTXLU\DVWRZKHWKHU.HQWODQGLVLQ
IDFWWKHSURSHUUHVSRQVLEOHRSHUDWRU
7KHUHJXODWLRQVUHTXLUHWKDWWKH'LUHFWRULGHQWLI\QRWLI\
DQG GHYHORS HYLGHQFH UHJDUGLQJ SRWHQWLDO UHVSRQVLEOH
RSHUDWRUV 6HH &)5 †† E
:KHQ WKH 'LUHFWRU KDV IDLOHG WR GHYHORS WKLV HYLGHQFH
DGHTXDWHO\RUKDVIDLOHGWRUHVROYHWKHUHVSRQVLEOHRSHUDWRU
LVVXHDWDSUHOLPLQDU\VWDJHRIWKHFDVHFRXUWVKDYHUHIXVHGWR
UHPDQG WKH FDVH IRU IXUWKHU SURFHHGLQJV UHJDUGLQJ WKH
UHVSRQVLEOHRSHUDWRU,QVWHDGWKH%ODFN/XQJ'LVDELOLW\7UXVW
)XQG ³7UXVW)XQG´ KDVSDLGWKHEHQHILWVWRZKLFKWKHPLQHUV
ZHUH HQWLWOHG 6HH HJ 9HQLFDVVD Y 'LUHFWRU 2IILFH RI
:RUNHUV¶ &RPS 3URJUDPV )G G &LU
'LUHFWRU2IILFHRI:RUNHUV¶&RPS3URJUDPVY7UDFH)RUN
&RDO&R)G WK&LU &UDEWUHHY%HWKOHKHP
6WHHO&RUS%ODFN/XQJ5HS %HQ5HY%G
,Q &UDEWUHH WKH %RDUG UHYLHZHG WKH $/-¶V GHFLVLRQ
JUDQWLQJEHQHILWVWRWKHFODLPDQWDQGILQGLQJ%HWKOHKHP6WHHO
WREHWKHSURSHUUHVSRQVLEOHRSHUDWRU7KH%RDUGUHYHUVHGWKH
$/-¶V ILQGLQJ WKDW %HWKOHKHP 6WHHO ZDV WKH UHVSRQVLEOH
RSHUDWRUDQGUHIXVHGWRUHPDQGWKHFDVHIRUUHFRQVLGHUDWLRQRI
WKHRSHUDWRULVVXH&UDEWUHH%ODFN/XQJ5HSDW
7KH%RDUGLQVWHDGKHOGWKH7UXVW)XQGOLDEOHVWDWLQJ
WKDW³>W@KH'HSDUWPHQWRI/DERULVQRWHQWLWOHGWRDVHFRQG
RSSRUWXQLW\WRLGHQWLI\DQRWKHUSXWDWLYHUHVSRQVLEOHRSHUDWRU´
,GDW7KH%RDUGIXUWKHUH[SODLQHG
7KH'HSDUWPHQWLVDXWKRUL]HGE\ODZWRLGHQWLI\WKH
SXWDWLYH UHVSRQVLEOH RSHUDWRU ZKR PD\ EH OLDEOH IRU
SD\PHQW RI EHQHILWV LQ WKH FRXUVH RI GHWHUPLQLQJ
ZKHWKHU D PLQHU LV HQWLWOHG WR EHQHILWV &)5
††7KHUHJXODWLRQVFRQWDLQQRH[SUHVV
SURYLVLRQ UHTXLULQJ WKH 'HSDUWPHQW WR LGHQWLI\ DOO
SXWDWLYHUHVSRQVLEOHRSHUDWRUVDQGUHVROYHDQ\GLVSXWHDV

-- 6 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
7KH 'LUHFWRU DV D SDUW\ LQ LQWHUHVW GRHV QRW DUJXH WKDW &ROHPDQ DQG
*UDVV\ &UHHN DUH QRW LQ D SUHGHFHVVRUVXFFHVVRU UHODWLRQVKLS 5DWKHU WKH
'LUHFWRU DUJXHV WKDW QHLWKHU FRPSDQ\ FDQ EH D UHVSRQVLEOH RSHUDWRU
EHFDXVH QHLWKHU HPSOR\HG +DOO IRU DW OHDVW RQH \HDU 7KH 'LUHFWRU DUJXHV
WKDW WKH ODQJXDJH LQ 86& † L RI WKH $FW GLUHFWLQJ WKDW VXFFHVVRU
RSHUDWRUV DUH WR SD\ EHQHILWV WKDW ³ZRXOG KDYH EHHQ SD\DEOH E\ WKH SULRU
RSHUDWRU´ PHDQV WKDW QR OLDELOLW\ FDQ DWWDFK WR D VXFFHVVRU XQOHVV LW
DWWDFKHG WR WKH SULRU RSHUDWRU ,Q RWKHU ZRUGV WKH 'LUHFWRU DUJXHV WKDW
XQOHVV WKH SULRU RSHUDWRU HPSOR\HG WKH PLQHU IRU D \HDU WKH RQH\HDU
FORFN UHVHWV IRU WKH VXFFHVVRU ZKHQ LWV SUHGHFHVVRU VHOOV DOO RI LWV DVVHWV
DQG WUDQVIHUV DOO RI LWV HPSOR\HHV
7KH 'LUHFWRU KRZHYHU IDLOV WR FRPSOHWH WKH VHQWHQFH IURP WKH
VWDWXWH 7KH $FW VWDWHV WKDW WKH VXFFHVVRU LV OLDEOH IRU DOO ³EHQHILWV ZKLFK
ZRXOG KDYH EHHQ SD\DEOH E\ WKH SULRU RSHUDWRU XQGHU WKLV VHFWLRQ ZLWK
UHVSHFW WR PLQHUV SUHYLRXVO\ HPSOR\HG E\ VXFK SULRU RSHUDWRU DV LI WKH
DFTXLVLWLRQ KDG QRW RFFXUUHG DQG WKH SULRU RSHUDWRU KDG FRQWLQXHG WR EH
DQ RSHUDWRU RI D FRDO PLQH´ 86& † L HPSKDVLV DGGHG
7KH $FW FRQWHPSODWHV WKDW WKH VXFFHVVRU¶V LGHQWLW\ ZLOO PHUJH ZLWK WKDW RI
LWV SUHGHFHVVRU 7KLV FRQVWUXFWLRQ PDNHV VHQVH EHFDXVH WKH SXUSRVH RI WKH
$FW LV WR SUHYHQW FOHYHU FRUSRUDWH VWUXFWXUHV IURP GHIHDWLQJ WKH
SURWHFWLRQV RI WKH $FW ,I ZH DGRSW WKH 'LUHFWRU¶V DUJXPHQW WKHQ D
FRPSDQ\ FRXOG HVFDSH OLDELOLW\ XQGHU WKH $FW E\ IRUPLQJ D VKHOO
FRUSRUDWLRQ DQG WUDQVIHUULQJ LWV DVVHWV LQWR WKH VKHOO HYHU\ HOHYHQ PRQWKV
7KLV LV H[DFWO\ WKH VWUDWHJ\ WKH $FW LQWHQGV WR DYRLG
6HFXULW\ VWDWHPHQW RI HDUQLQJV VKRZV WKDW KH ZRUNHG IRU
&ROHPDQIRUSHULRGVRIWLPHLQDQG,Q+DOO
HDUQHG IURP &ROHPDQ DQG LQ KH HDUQHG
+LV HDUQLQJV IURP &ROHPDQ LQGLFDWH WKDW LI KLV
WLPH ZLWK &ROHPDQ DQG *UDVV\ &UHHN ZHUH DJJUHJDWHG LW
ZRXOGWRWDORYHUD\HDU
%HFDXVHVXEVWDQWLDOHYLGHQFHGRHVQRWVXSSRUWWKH$/-¶V
FRQFOXVLRQUHJDUGLQJWKHSUHGHFHVVRUVXFFHVVRUUHODWLRQVKLS
RI &ROHPDQ DQG *UDVV\ &UHHN WKH HYLGHQFH DOVR GRHV QRW
VXSSRUW D ILQGLQJ WKDW .HQWODQG LV WKH SURSHU UHVSRQVLEOH
RSHUDWRU .HQWODQG FRXOG RQO\ EH OLDEOH DV D UHVSRQVLEOH
RSHUDWRULIQRRWKHUVXEVHTXHQWRSHUDWRUVHPSOR\HG+DOOIRU
D\HDURUPRUH7KHHYLGHQFHLVQRWVXEVWDQWLDOHQRXJKWR
VXSSRUW D ILQGLQJ WKDW *UDVV\ &UHHN FDQQRW EH KHOG
UHVSRQVLEOH,QVWHDGWKHHYLGHQFHLQGLFDWHVWKDW*UDVV\&UHHN
LVOLNHO\WKH³RSHUDWRUZLWKZKLFK>+DOO@KDGWKHPRVW
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

&)5† E WKDWFDQHVWDEOLVKDPLQHU¶V
WRWDOGLVDELOLW\
7KH$/-IRXQGWKDW+DOOKDGVKRZQKLPVHOIWRWDOO\GLVDEOHG
XQGHU &)5 † E LY E\ VKRZLQJ WKDW ³D
SK\VLFLDQH[HUFLVLQJUHDVRQHGPHGLFDOMXGJPHQWEDVHGRQ
PHGLFDOO\ DFFHSWDEOH FOLQLFDO DQG ODERUDWRU\ GLDJQRVWLF
WHFKQLTXHVFRQFOXGHVWKDWDPLQHU¶VUHVSLUDWRU\RUSXOPRQDU\
FRQGLWLRQ SUHYHQWV WKH PLQHU IURP HQJDJLQJ LQ
HPSOR\PHQWDVGHVFULEHGLQSDUDJUDSK E RIWKLVVHFWLRQ´
-$DW
,Q PDNLQJ WKLV GHWHUPLQDWLRQ WKH $/- FRQVLGHUHG IRXU
GRFWRUV¶HYDOXDWLRQVRI+DOO -$DW± ,QFKRRVLQJ
ZKLFKHYDOXDWLRQVZHUHPRUHFUHGLEOHWKH$/-UHFRJQL]HG
WKDWE\ILQGLQJDPDWHULDOFKDQJHLQFRQGLWLRQWKH$/-ZDV
UHTXLUHG WR FRQVLGHU DOO RI WKH HYLGHQFH RI UHFRUG ,Q
FRQVLGHULQJVXFKHYLGHQFHWKH$/-GHWHUPLQHGWKDWEHFDXVH
EODFNOXQJLV³DSURJUHVVLYHDQGLUUHYHUVLEOHGLVHDVH´LWLV
³DSSURSULDWH WR DFFRUG JUHDWHU ZHLJKW WR WKH PRVW UHFHQW
HYLGHQFHRIUHFRUGHVSHFLDOO\ZKHUHDVLJQLILFDQWDPRXQWRI
WLPHVHSDUDWHVWKHQHZHUIURPWKHROGHUHYLGHQFH´ -$DW
$FFRUGLQJO\ WKH $/- IRFXVHG RQ WKH HYDOXDWLRQV
SHUIRUPHG E\ 'UV 6LEX 6DKD 0DQQ <RXQHV $\HVKD 1
6LNGHUDQG*UHJRU\)LQR -$DW±
'U6DKDFRQGXFWHGDELRSV\RI+DOO¶VOXQJDQGIRXQGD
SOHXUDOQRGXOHLQ$XJXVW7KHGLVFKDUJHGLDJQRVLVRI
+DOOVKRZHG³DQWKUDFRVLOLFRVLVRIWKHOHIWOXQJ´DQG³WREDFFR
DEXVH´ -$DW±
'U <RXQHV H[DPLQHG +DOO RQ 2FWREHU +H
GLDJQRVHG+DOOZLWKFRDOZRUNHUV¶SQHXPRFRQLRVLVFDXVDOO\
UHODWHG WR RFFXSDWLRQDO GXVW H[SRVXUH FKURQLF REVWUXFWLYH
SXOPRQDU\ GLVHDVH DQG FKURQLF EURQFKLWLV +H WUDFHG WKH
VHFRQGDQGWKLUGDLOPHQWVSULPDULO\WRFLJDUHWWHVPRNLQJDQG
VHFRQGDULO\WRFRDOGXVWH[SRVXUH -$DW± 2QRQH
SDUWRIWKHHYDOXDWLRQIRUP'U<RXQHVVWDWHGWKDW+DOOKDG
D³PRGHUDWHREVWUXFWLYHLPSDLUPHQWZKLFKPD\LQWHUIHUHZLWK

-- 7 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
:KLOH 'U 6LNGHU LQLWLDOO\ DQVZHUHG ³\HV´ WR WKH TXHVWLRQ RI ZKHWKHU
+DOO UHWDLQHG WKH UHVSLUDWRU\ FDSDELOLW\ WR SHUIRUP KLV XVXDO FRDO PLQH
ZRUN WKH GRFWRU LQGLFDWHG LQ D VXEVHTXHQW QRWH WKDW VKH ³ZURWH \HV E\
PLVWDNH´ -$ DW 7KH QRWH IXUWKHU VWDWHG DERXW +DOO¶V XVXDO FRDO
PLQH ZRUN WKDW ³3>DWLHQW@ XQDEOH WR SHUIRUP DERYH ZRUN´ -$ DW
ODVWFRDOPLQLQJMRE´ -$DW %XW'U<RXQHVDOVRVDLG
WKDW+DOO¶VLPSDLUPHQWUHQGHUHG+DOOWRWDOO\GLVDEOHGIURP
FRDO PLQLQJ HPSOR\PHQW -$ DW 7KH GRFWRU DOVR
QRWHGWKDW+DOO¶VLPSDLUPHQW³LVSULPDULO\FDXVHGE\VPRNLQJ
WREDFFR EXW RFFXSDWLRQDO GXVW H[SRVXUH PD\ DOVR EH D
FRQWULEXWLQJIDFWRU´ -$DW
'U6LNGHUEHJDQWUHDWLQJ+DOOLQ,QKHU-DQXDU\
H[DPLQDWLRQRI+DOO'U6LNGHUFRQFOXGHGWKDW+DOOKDGEODFN
OXQJGLVHDVHEDVHGRQFRDOGXVWH[SRVXUHDQGFKHVW;UD\V
WKDWUHYHDOHGILEURWLFOXQJGLVHDVH'U6LNGHUFRQFOXGHGWKDW
VLOLFDDQGFRDOGXVWH[SRVXUHFDXVHGWKHGLVHDVHDQGUHQGHUHG
+DOO WRWDOO\ GLVDEOHG DQG WKXV XQDEOH WR ZRUN -$ DW
±
.HQWODQGDUJXHVWKDWWKH$/-VKRXOGKDYHUHOLHGXSRQ'U
)LQRDQGVKRXOGKDYHGLVFRXQWHGWKHRSLQLRQVRI'UV6LNGHU
<RXQHVDQG6DKD'U)LQRH[DPLQHG+DOORQ-XQH
+H GLG D FKHVW ; UD\ D SXOPRQDU\ IXQFWLRQ WHVW DQG DQ
DUWHULDOEORRGJDVVWXG\'U)LQRJDYHWKHRSLQLRQWKDW+DOO
KDG EODFN OXQJ GLVHDVH WKDW WKH EUHDWKLQJ REVWUXFWLRQ ZDV
UHODWHGWRVPRNLQJEXWWKDW³WKHGHJUHHRIREVWUXFWLRQFDQQRW
EH DVVHVVHG VLQFH >+DOO@ GLG QRW JLYH D PD[LPXP HIIRUW´
-$DW +HFRQFOXGHGWKDW³>W@KHUHLVQRHYLGHQFHWKDW
WKHREVWUXFWLRQLVRIVLJQLILFDQWGHJUHHWRSUHYHQW>+DOO@IURP
UHWXUQLQJ WR KLV ODVW MRE RU D MRE UHTXLULQJ VLPLODU HIIRUW´
-$DW
7KH$/-IRXQGWKDWWKHRSLQLRQVRI'UV6DKD<RXQHVDQG
6LNGHURXWZHLJKHGWKHRSLQLRQRI'U)LQR7KH$/-IRXQG
'U)LQR¶VHYLGHQFHWREHHTXLYRFDODQGYDJXH3DUWLFXODUO\
WURXEOLQJWRWKH$/-ZDVWKDW'U)LQRFRXOGQRWVXIILFLHQWO\
GHWHUPLQHWKHOHYHORIREVWUXFWLRQRI+DOO¶VOXQJV\HWKHVWLOO
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

RSHUDWH XQGHU WKH VDPH QDPH EXW ³WKH\ WRRN DOO WKHLU PHQ ZLWK WKHP´ DQG
WKH HPSOR\HHV ZRUNHG ZLWK WKH VDPH SHRSOH DW *UDVV\ &UHHN DV WKH\ GLG
DW &ROHPDQ -$ ±
7KH 'LUHFWRU UHOLHV RQ & . &RDO &R Y 7D\ORU )G G
&LU IRU WKH SURSRVLWLRQ WKDW D VXFFHVVRU FDQQRW EH OLDEOH IRU
EHQHILWV XQOHVV WKH SUHGHFHVVRU FRPSDQ\ ZRXOG KDYH EHHQ OLDEOH
'LUHFWRU¶V %U DW ,Q & . &RDO KRZHYHU WKH FRXUW DJJUHJDWHG
WKH WRWDO WLPH WKH SUHGHFHVVRU DQG VXFFHVVRU FRPSDQLHV HPSOR\HG WKH
PLQHU DQG QRWHG WKDW DFFRUGLQJ WR 86& † L ³WKH VXFFHVVRU
RSHUDWRU LV UHVSRQVLEOH IRU EHQHILWV ZKLFK μZRXOG KDYH EHHQ SD\DEOH¶ E\
WKH SULRU RSHUDWRU IRU PLQHUV SUHYLRXVO\ HPSOR\HG E\ WKH SULRU RSHUDWRU
DV LI WKH SULRU RSHUDWRU KDG FRQWLQXHG WR RSHUDWH WKH PLQH´ & . &RDO
)G DW
7KH$/-GLVPLVVHGWKLVHYLGHQFHLQRQHVHQWHQFHVWDWLQJ
WKDWWKHUHZDV³QRHYLGHQFHUHJDUGLQJDPLQHDFTXLVLWLRQRUD
WUDQVIHURIDVVHWV´ -$DW ,WVHHPVDSSDUHQWKRZHYHU
WKDWPRYLQJDOORIWKHHTXLSPHQWIURPRQHPLQHWRDQRWKHU
PLQHDQGRSHUDWLQJLWXQGHUDGLIIHUHQWQDPHRUFRUSRUDWH
VWUXFWXUHZRXOGTXDOLI\DVD³WUDQVIHURIDVVHWV´HYHQLIWKHUH
ZHUHQRZULWWHQSXUFKDVHDJUHHPHQWRURWKHUGRFXPHQWDWLRQ
IDFLOLWDWLQJWKHWUDQVIHU7KLVDQGRWKHUUHFRUGHYLGHQFHVKRZV
WKDWWKHSUHSRQGHUDQFHRIWKHHYLGHQFHOLNHO\HVWDEOLVKHVWKDW
*UDVV\&UHHNZDVDVXFFHVVRUWR&ROHPDQ
$SUHSRQGHUDQFHRIWKHHYLGHQFHOLNHO\VXSSRUWVDILQGLQJ
WKDW &ROHPDQ DQG *UDVV\ &UHHN ZHUH LQ D
SUHGHFHVVRUVXFFHVVRU UHODWLRQVKLS 7KHUHIRUH LI WKH
DJJUHJDWHGWLPH+DOOZRUNHGIRUHDFKFRPSDQ\WRWDOHGRQH
\HDU WKHQ *UDVV\ &UHHN DQG QRW .HQWODQG ZRXOG EH WKH
SURSHU UHVSRQVLEOH RSHUDWRU 6HH HJ & . &RDO &R Y
7D\ORU)G G&LU DJJUHJDWLQJWKH
WLPH D PLQHU ZRUNHG IRU WKH SUHGHFHVVRU DQG VXFFHVVRU
FRPSDQLHVWRGHWHUPLQHZKHWKHUKLVHPSOR\PHQWH[FHHGHG
WKHRQH\HDUUHTXLUHPHQW
+DOOZRUNHGIRU*UDVV\&UHHNIURP-XO\RUWR
-XO\MXVWXQGHUD\HDU -$DW +DOOGRHV
QRW NQRZ KRZ ORQJ KH ZRUNHG IRU &ROHPDQ +LV 6RFLDO

-- 8 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
+DOO WHVWLILHG LQ D KHDULQJ EHIRUH $/- 3KDOHQ WKDW ZKHQ &ROHPDQ
PRYHG IURP RQH PLQH WR DQRWKHU ³>W@KH\ ZHUH PRYLQJ WKH PLQLQJ
HTXLSPHQW 7KH\ ZDV WDNLQJ WKHLU HTXLSPHQW ZLWK WKHP :KHQ WKH\ TXLW
RQH PLQH WKH\ WRRN DOO WKHLU HTXLSPHQW RXW RI LW 7KH\ PRYHG LW RYHU KHUH
WR DQRWKHU PLQH WKHQ XVHG WKH HTXLSPHQW LQ LW´ -$ DW +DOO VWDWHG
IXUWKHU WKDW ZKHQ &ROHPDQ PRYHG PLQH VLWHV WKH\ ZRXOG QRW QHFHVVDULO\
FRQGLWLRQV@ WKH VXFFHVVRU RSHUDWRU VKDOO LI
DSSURSULDWHEHOLDEOHIRUWKHSD\PHQWRIVXFKEHQHILWV
&)5† D LL
7KH$/-IRXQGWKDW&ROHPDQDQG*UDVV\&UHHNZHUHQRWLQ
DSUHGHFHVVRUVXFFHVVRUUHODWLRQVKLSDQGWKHUHIRUH.HQWODQG
ZDVWKHDSSURSULDWHUHVSRQVLEOHRSHUDWRU -$DW :H
UHYHUVHWKH$/-¶VGHFLVLRQRQO\LIVXEVWDQWLDOHYLGHQFHGRHV
QRW VXSSRUW WKH FRQFOXVLRQ RU WKH FRQFOXVLRQ LV QRW LQ
DFFRUGDQFHZLWKWKHODZ6HH<RXJKLRJKHQ\)GDW
+HUH VXEVWDQWLDO HYLGHQFH GRHV QRW VXSSRUW WKH $/-¶V
FRQFOXVLRQ WKDW &ROHPDQ DQG *UDVV\ &UHHN ZHUH QRW LQ D
SUHGHFHVVRUVXFFHVVRU UHODWLRQVKLS 5DWKHU WKH
SUHSRQGHUDQFHRIWKHHYLGHQFHVXSSRUWVWKHFRQWUDU\
%UHQW&ROHPDQRQHRIWKHWKUHHLQFRUSRUDWRUVRI&ROHPDQ
&ROHPDQZDVDOVRWKHVROHLQFRUSRUDWRURI*UDVV\&UHHN
-$DW±± 6LPLODUO\%UHQW&ROHPDQZDVD
GLUHFWRU RI &ROHPDQ &ROHPDQ DQG WKH VROH GLUHFWRU RI
*UDVV\&UHHN -$DW *UDVV\&UHHN¶VERRNNHHSHU
VXSSOLHGLQIRUPDWLRQUHJDUGLQJ+DOO¶VSHULRGVRIHPSOR\PHQW
ZLWKERWKFRPSDQLHV -$DW 6KHZRUNHGRXWRIWKH
VDPHRIILFHIRUERWK&ROHPDQ &ROHPDQDQG*UDVV\&UHHN
-$DW± 5RJHU&ROHPDQDQLQFRUSRUDWRUDQG
GLUHFWRURI&ROHPDQ &ROHPDQVLJQHGDQDIILGDYLWLQ
DVFXVWRGLDQRI*UDVV\&UHHN¶VUHFRUGV -$DW +DOO
WHVWLILHGWZLFHWKDW&ROHPDQ &ROHPDQDQG*UDVV\&UHHN
KDGWKHVDPHRZQHUVEXWGLIIHUHQWPLQHVLWHV -$DW
+DOODOVRWHVWLILHGWKDWZKHQWKH\ILQLVKHGPLQLQJRQH
VLWH WKH HPSOR\HHV ZRXOG PRYH WKH HTXLSPHQW WR DQRWKHU
PLQHDQGRSHUDWHLWXQGHUDGLIIHUHQWQDPH -$DW
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

FRQFOXGHGWKDW+DOOFRXOGGRKLVSUHYLRXVFRDOPLQHZRUN
-$DW± ,QFRQWUDVWWKH$/-QRWHGWKDW'UV<RXQHV
DQG6LNGHUKDGERWKGRQHDWKRURXJKH[DPLQDWLRQRI+DOODQG
LQGLFDWHGWKDWKHZDVFRPSOHWHO\XQDEOHWRGRPLQLQJZRUN
-$ DW &RPELQHG ZLWK WKH IDFW WKDW +DOO¶V SUHYLRXV
ZRUNLQWKHFRDOPLQHVUHTXLUHGKHDY\H[HUWLRQDQGH[SRVXUH
WR ODUJH DPRXQWV RI GXVW -$ DW ± WKH $/-
FRQFOXGHG WKDW +DOO ZDV WRWDOO\ GLVDEOHG DV &)5
† E GHILQHVWKDWWHUP
%H\RQGSURYLQJWKDWKHLVWRWDOO\GLVDEOHG+DOOPXVWDOVR
VKRZ WKDW WKH EODFN OXQJ GLVHDVH LV D ³VXEVWDQWLDOO\
FRQWULEXWLQJ FDXVH´ RI WKH WRWDOO\ GLVDEOLQJ LPSDLUPHQW WR
UHFHLYHEHQHILWVXQGHUWKH%ODFN/XQJ%HQHILWV$FW6HH
&)5† F :HKDYHKHOGWKDWEODFNOXQJ
GLVHDVHQHHGQRWFDXVHWKHWRWDOO\GLVDEOLQJLPSDLUPHQWVROHO\
EXWWKHLPSDLUPHQWPXVWEHGXH³DWOHDVWLQSDUW´WREODFNOXQJ
GLVHDVH$GDPVY'HS¶WRI/DERU)G WK
&LU
7KH$/-IRXQGWKDWWKHRSLQLRQVRI'UV<RXQHVDQG6LNGHU
ZHUH VXIILFLHQW WR ILQG WKDW +DOO¶V LPSDLUPHQW ZDV HLWKHU
SULPDULO\RUVHFRQGDULO\UHODWHGWRKLVH[SRVXUHWRFRDOGXVW
7KH $/- IRXQG WKLV GHVSLWH WKH IDFW WKDW +DOO¶V FLJDUHWWH
VPRNLQJPD\KDYHDOVREHHQDFRQWULEXWLQJIDFWRU -$DW

,QWKLVDSSHDO.HQWODQGHVVHQWLDOO\DUJXHVWKDWWKH$/-GLG
QRWJLYHDGHTXDWHZHLJKWWR'U)LQR¶VPHGLFDORSLQLRQ:H
UHMHFWWKLVDUJXPHQW$VVWDWHGSUHYLRXVO\ZHDUHQRWFDOOHG
XSRQWRUHZHLJKWKHHYLGHQFHRUVXEVWLWXWHRXUMXGJPHQWIRU
WKDWRIWKH$/-6HH*UD\)GDW:HUHYLHZRQO\
ZKHWKHU WKH $/-¶V HYDOXDWLRQ ZDV XQUHDVRQDEOH RU QRW
DFFRUGLQJWRODZ7KH$/-IRXQGWKHRSLQLRQVRI'UV6DKD
<RXQHVDQG6LNGHUPRUHFUHGLEOHWKDQ'U)LQR¶VRSLQLRQ
:HILQGWKDWWKH$/-¶VHYDOXDWLRQRIWKHUHFRUGHYLGHQFHZDV
UHDVRQDEOHDQGLQDFFRUGDQFHZLWKWKHODZDQGWKDWWKH$/-
EDVHGWKHHYDOXDWLRQXSRQVXEVWDQWLDOHYLGHQFHLQWKHUHFRUG

-- 9 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
:HWKHUHIRUHILQGWKDWVXEVWDQWLDOHYLGHQFHVXSSRUWV+DOO¶V
HOLJLELOLW\IRUEODFNOXQJEHQHILWV
%5HVSRQVLEOH2SHUDWRU
+DYLQJGHFLGHGWKDW+DOOLVHQWLWOHGWREHQHILWVZHPXVW
QRZGHFLGHZKRLVUHVSRQVLEOHIRUSD\LQJWKHVHEHQHILWV7KH
$FWSXWVWKHEXUGHQRISD\PHQWRQHPSOR\HUV6HH86&
† ,IQRHPSOR\HULVIRXQGOLDEOHWKHSD\PHQW
REOLJDWLRQIDOOVWRWKH%ODFN/XQJ'LVDELOLW\7UXVW)XQG6HH
86&†
)HGHUDOUHJXODWLRQVFUHDWHDIUDPHZRUNLQZKLFKWRGHFLGH
WKHHPSOR\HUUHVSRQVLEOHIRUSD\PHQWRIDPLQHU¶VEODFNOXQJ
EHQHILWV7KH³UHVSRQVLEOHRSHUDWRU´LVWKHHPSOR\HU³ZLWK
ZKLFKWKHPLQHUKDGWKHPRVWUHFHQWSHULRGVRIFXPXODWLYH
HPSOR\PHQW RI QRW OHVV WKDQ \HDU´ &)5
† D VHH DOVR &RUQHWW Y %HQKDP &RDO
,QF)GQ WK&LU
6HFWLRQ E RXWOLQHVWKHPHWKRGIRUGHWHUPLQLQJWKH
UHVSRQVLEOHRSHUDWRU7KDWVHFWLRQVWDWHV
)URP WKH HYLGHQFH SUHVHQWHG WKH LGHQWLW\ RI WKH
RSHUDWRURURWKHUHPSOR\HUZLWKZKLFKWKHPLQHUKDGWKH
PRVW UHFHQW SHULRGV RI FXPXODWLYH HPSOR\PHQW RI QRW
OHVVWKDQ\HDUDQGWRWKHH[WHQWHYLGHQFHSHUPLWVWKH
EHJLQQLQJ DQG HQGLQJ GDWHV RI VXFK SHULRGV VKDOO EH
DVFHUWDLQHG )RU SXUSRVHV RI WKLV VHFWLRQ D \HDU RI
HPSOR\PHQWPHDQVDSHULRGRI\HDURUSDUWLDOSHULRGV
WRWDOLQJ \HDU GXULQJ ZKLFK WKH PLQHU ZDV UHJXODUO\
HPSOR\HGLQRUDURXQGDFRDOPLQHE\WKHRSHUDWRURU
RWKHUHPSOR\HU5HJXODUHPSOR\PHQWPD\EHHVWDEOLVKHG
RQ WKH EDVLV RI DQ\ HYLGHQFH SUHVHQWHG LQFOXGLQJ WKH
WHVWLPRQ\RIWKHFODLPDQWRURWKHUZLWQHVVHVDQGVKDOO
QRWEHFRQWLQJHQWXSRQDILQGLQJRIDVSHFLILFQXPEHURI
GD\VRIHPSOR\PHQWZLWKLQDJLYHQSHULRG+RZHYHULI
DQRSHUDWRURURWKHUHPSOR\HUSURYHVWKDWWKHPLQHUZDV
QRWHPSOR\HGE\LWIRUDSHULRGRIDWOHDVWZRUNLQJ
GD\V VXFK RSHUDWRU RU RWKHU HPSOR\HU VKDOO EH
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

'XULQJ DQ\ SHULRG LQ ZKLFK WKLV VHFWLRQ LV
DSSOLFDEOHWRWKHRSHUDWRURIDFRDOPLQHZKRRQRUDIWHU
-DQXDU\DFTXLUHGVXFKPLQHRUVXEVWDQWLDOO\DOO
WKH DVVHWV WKHUHRI IURP D SHUVRQ KHUHLQDIWHU LQ WKLV
VXEVHFWLRQUHIHUUHGWRDVD³SULRURSHUDWRU´ ZKRZDVDQ
RSHUDWRURIVXFKPLQHRURZQHURIVXFKDVVHWVRQRUDIWHU
-DQXDU\ VXFK RSHUDWRU VKDOO EH OLDEOH IRU DQG
VKDOOVHFXUHWKHSD\PHQWRIDOOEHQHILWVZKLFKZRXOG
KDYH EHHQ SD\DEOH E\ WKH SULRU RSHUDWRU XQGHU WKLV
VHFWLRQZLWKUHVSHFWWRPLQHUVSUHYLRXVO\HPSOR\HGE\
VXFKSULRURSHUDWRUDVLIWKHDFTXLVLWLRQKDGQRWRFFXUUHG
DQGWKHSULRURSHUDWRUKDGFRQWLQXHGWREHDQRSHUDWRURI
DFRDOPLQH
1RWKLQJLQWKLVVXEVHFWLRQVKDOOUHOLHYHDQ\SULRU
RSHUDWRURIDQ\OLDELOLW\XQGHUWKLVVHFWLRQ
86&† L ±
7KH$FWIXUWKHUVWDWHVWKDWFRUSRUDWHUHRUJDQL]DWLRQVDQG
OLTXLGDWLRQV TXDOLI\ DV VXFK D UHODWLRQVKLS ,W SODFHV WKH
EXUGHQ WR SD\ EHQHILWV RQ WKH VXFFHVVRU RSHUDWRU LI VXFK
VXFFHVVRURSHUDWRUSXUFKDVHV³VXEVWDQWLDOO\DOO>RIWKHSULRU
RSHUDWRU¶V@DVVHWV´RULIDSULRURSHUDWRUFHDVHVWRH[LVW³DV
WKHUHVXOWRIDPHUJHUFRQVROLGDWLRQRUGLYLVLRQ´86&
† L $ ± '
7KH&RGHRI)HGHUDO5HJXODWLRQVGLVFXVVHVWKHPRWLYHRI
WKHVWDWXWHH[SODLQLQJWKDW
7KH VWDWHG FRQJUHVVLRQDO REMHFWLYH VXSSRUWLQJ >
86& † L @ LV WR SUHYHQW D FRDO RSHUDWRU IURP
FLUFXPYHQWLQJOLDELOLW\XQGHUWKLVSDUWE\HQWHULQJLQWR
FRUSRUDWHRURWKHUEXVLQHVVWUDQVDFWLRQVZKLFKPDNHWKH
DVVHVVPHQWRIOLDELOLW\DJDLQVWWKDWRSHUDWRUDILQDQFLDORU
OHJDOLPSRVVLELOLW\$FFRUGLQJO\DSULRURSHUDWRU
ZKLFKWUDQVIHUVDPLQHRUPLQHVRUVXEVWDQWLDOO\DOOWKH
DVVHWV WKHUHRI VKDOO UHPDLQ SULPDULO\ OLDEOH IRU WKH
SD\PHQWRIEHQHILWVXQGHUWKLVSDUW>DQGLIWKHSULRU
RSHUDWRU FDQQRW PHHW WKH UHTXLVLWH ILQDQFLDO

-- 10 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
7KH 'LUHFWRU DUJXHV WKDW HYHQ LI *UDVV\ &UHHN KDG D VXFFHVVRU
LQWHUHVW LQ &ROHPDQ +DOO GLG QRW ZRUN IRU &ROHPDQ IRU D \HDU DQG
WKHUHIRUH *UDVV\ &UHHN FDQQRW EH KHOG OLDEOH DV D UHVSRQVLEOH RSHUDWRU
7KH 'LUHFWRU DGYDQFHG WKLV DUJXPHQW EHORZ EXW WKH %RDUG GLG QRW
FRQVLGHU LW LQ LWV RSLQLRQ
IRUZRUNDVDPLQHU6HH*DUGQHU)GDW ³7KH
GD\OLPLWUHODWHVWRWKHPLQLPXPDPRXQWRIWLPHWKHPLQHU
PD\KDYHEHHQH[SRVHGWRFRDOGXVWZKLOHLQHPSOR\PHQWE\
WKDWRSHUDWRU´
'HVSDUDGR )XHOV WKHUHIRUH FDQQRW EH WKH UHVSRQVLEOH
RSHUDWRU EHFDXVH LW GLG QRW HPSOR\ +DOO IRU WKH PLQLPXP
DPRXQWRIWLPHWKHUHJXODWLRQVUHTXLUH
&ROHPDQ &ROHPDQDQG*UDVV\&UHHN(QHUJLHV
.HQWODQGQH[WDUJXHVWKDW+DOOZRUNHGIRUWZRFRPSDQLHV
&ROHPDQ DQG *UDVV\ &UHHN DIWHU KLV HPSOR\PHQW ZLWK
.HQWODQG.HQWODQGDUJXHVWKDWWKH$/-HUUHGLQQRWILQGLQJ
D SUHGHFHVVRUVXFFHVVRU UHODWLRQVKLS EHWZHHQ WKH WZR
FRPSDQLHV,IVXFKDSUHGHFHVVRUVXFFHVVRUUHODWLRQVKLSLV
IRXQG .HQWODQG VD\V WKH $/- VKRXOG KDYH DJJUHJDWHG WKH
WLPH+DOOZRUNHGIRUHDFK
7KH'LUHFWRUDQG+DOOFRQFHGHWKDW+DOOEHJDQZRUNLQJIRU
&ROHPDQRQ6HSWHPEHUEXWQHLWKHUNQHZKLVOHQJWK
RI HPSOR\PHQW -$ DW 7KH GLUHFWRU DQG +DOO DOVR
FRQFHGH WKDW +DOO ZRUNHG IRU *UDVV\ &UHHN IURP -XO\
RUWR-XO\ -$DW 7KHUHIRUH
ZHGHFLGHZKHWKHULWZDVUDWLRQDOWRFRQFOXGHWKDW&ROHPDQ
DQG *UDVV\ &UHHN ZHUH QRW LQ D SUHGHFHVVRUVXFFHVVRU
UHODWLRQVKLSEXWLIWKH\ZHUHZKHWKHUWKHWLPH+DOOVSHQWDW
ERWKFRPSDQLHVVKRXOGEHDJJUHJDWHG
6HFWLRQ L RI WKH 8QLWHG 6WDWHV &RGH RXWOLQHV WKH
OLDELOLW\RIVXEVHTXHQWRSHUDWRUV,WVWDWHVWKDW
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

7KLV &RXUW LQ DQ XQSXEOLVKHG RSLQLRQ UHDFKHV D FRQFOXVLRQ VLPLODU
WR WKDW RI WKH 7KLUG &LUFXLW LQ 'LUHFWRU 2IILFH RI :RUNHUV¶ &RPS
3URJUDPV Y *DUGQHU )G ± ,Q %*/ 0LQLQJ &R
Y &DVK 1R :/ WK &LU 6HSW
XQSXEOLVKHG WDEOH GHFLVLRQ WKLV &RXUW UHFRJQL]HV WZR UHTXLUHPHQWV WR
GHWHUPLQH D UHVSRQVLEOH RSHUDWRU )LUVW ³WKH PLQHU PXVW KDYH EHHQ
HPSOR\HG E\ WKH HPSOR\HU IRU QRW OHVV WKDQ RQH \HDU´ DQG VHFRQG
³GXULQJ WKH RQH\HDU SHULRG WKH PLQHU PXVW KDYH EHHQ HPSOR\HG IRU DW
OHDVW μZRUNLQJ GD\V¶ LQ RUGHU IRU WKH HPSOR\PHQW WR EH GHHPHG
UHJXODU´ %*/ 0LQLQJ &R :/ DW /LNH WKH 7KLUG
&LUFXLW H[SODLQHG WKH PLQHU PXVW ZRUN DW OHDVW D \HDU 8SRQ GHWHUPLQLQJ
WKDW WKH PLQHU KDV ZRUNHG IRU D FXPXODWLYH SHULRG RI RQH FDOHQGDU \HDU
WKH HPSOR\HU QHYHUWKHOHVV ZLOO QRW EH OLDEOH DV D UHVSRQVLEOH RSHUDWRU
XQOHVV GXULQJ WKDW RQH\HDU SHULRG WKH HPSOR\HH ZRUNHG DV D PLQHU IRU
DW OHDVW GD\V
GHWHUPLQHGWRKDYHHVWDEOLVKHGWKDWWKHPLQHUZDVQRW
UHJXODUO\ HPSOR\HG IRU D FXPXODWLYH \HDU E\ VXFK
RSHUDWRURUHPSOR\HUIRUWKHSXUSRVHVRISDUDJUDSK D RI
WKLVVHFWLRQ$³ZRUNLQJGD\´PHDQVDQ\GD\RUSDUWRI
DGD\IRUZKLFKDPLQHUUHFHLYHGSD\IRUZRUNDVDPLQHU
&)5† E
,QDQDWWHPSWWRPDNHVHQVHRIZKDWLVDUJXDEO\DQRSDTXH
UHJXODWLRQWKH7KLUG&LUFXLWVWDWHG
$V D SUDFWLFDO PDWWHU WKH RQH\HDU HPSOR\PHQW
UHTXLUHPHQW VHWV D IORRU IRU WKH RSHUDWRU¶V FRQQHFWLRQ
ZLWKWKHPLQHUEHORZZKLFKWKHRSHUDWRUFDQQRWEHKHOG
UHVSRQVLEOHIRUWKHSD\PHQWRIEHQHILWV7KHGD\
OLPLWUHODWHVWRWKHPLQLPXPDPRXQWRIWLPHWKHPLQHU
PD\KDYHEHHQH[SRVHGWRFRDOGXVWZKLOHLQHPSOR\PHQW
E\WKHRSHUDWRU
'LUHFWRU2IILFHRI:RUNHUV¶&RPS3URJUDPVY*DUGQHU
)G±
7KHSDUWLHVGRQRWGLVSXWHWKDW+DOOZRUNHGDW.HQWODQGIRU
WKUHH\HDUVIURPWR8QOHVVVRPHODWHURSHUDWRU
HPSOR\HG +DOO IRU DW OHDVW RQH \HDU .HQWODQG LV WKH

-- 11 of 12 --

.HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO
1R
UHVSRQVLEOH RSHUDWRU .HQWODQG REMHFWV WR WKH $/-¶V
GHWHUPLQDWLRQWKDWLWZDVWKHUHVSRQVLEOHRSHUDWRURQWKUHH
JURXQGV )LUVW LW DUJXHV WKDW WKH $/- IDLOHG DFFXUDWHO\ WR
FDOFXODWH WKH WLPH WKDW +DOO ZRUNHG DW DQRWKHU PLQLQJ
FRPSDQ\'HVSDUDGR)XHOVEHFDXVHWKH$/-GLGQRWLQFOXGH
WKHWLPHWKDW+DOOZDVRQGLVDELOLW\OHDYHDIWHUDQLQMXU\DW
'HVSDUDGR)XHOV6HFRQG.HQWODQGDUJXHVWKDWDQRWKHUPLQH
&ROHPDQ DORQJ ZLWK LWV DOOHJHG VXFFHVVRU *UDVV\ &UHHN
(QHUJLHV,QF ³*UDVV\&UHHN´ HPSOR\HG+DOOIRUPRUHWKDQ
RQH\HDU)LQDOO\.HQWODQGDUJXHVWKH$/-DSSOLHGWKHZURQJ
OHJDOVWDQGDUGUHJDUGLQJZKRERUHWKHEXUGHQRIILQGLQJDOO
SRWHQWLDOO\ UHVSRQVLEOH RSHUDWRUV .HQWODQG VD\V WKH $/-
ZURQJO\ SODFHG WKDW EXUGHQ XSRQ LW LQVWHDG RI XSRQ WKH
'LUHFWRU
:HUHYLHZWKHIDFWXDOUHFRUGWRGHFLGHZKHWKHUVXEVWDQWLDO
HYLGHQFH VXSSRUWV WKH $/-¶V GHFLVLRQ WKDW .HQWODQG LV WKH
UHVSRQVLEOHRSHUDWRU6HH*UD\)GDW:HUHYLHZ
LVVXHVRIODZGHQRYR6HH%DWHV)GDW
'HVSDUDGR)XHOV
+DOOZRUNHGDW'HVSDUDGR)XHOVIURP0DUFKWR
-XO\+HZDVLQMXUHGRQWKHMRELQDURFNIDOODQGKH
GUHZ GLVDELOLW\ EHQHILWV IURP -XO\ XQWLO -XQH
7KH TXHVWLRQ ZLWK UHJDUG WR 'HVSDUDGR )XHOV LV
ZKHWKHUWKHRQH\HDUWHUPRI³UHJXODUHPSOR\PHQW´LQFOXGHV
ERWKWKHWLPH+DOOUHFHLYHGZDJHVIURP'HVSDUDGR)XHOVDQG
WKH WLPH KH UHFHLYHG GLVDELOLW\ SD\PHQWV 6HH &)5
† E
.HQWODQG UHOLHV XSRQ %R\G Y ,VODQG &UHHN &RDO &R
%ODFN /XQJ 5HS %HQ 5HY %G -DQ D
%HQHILWV5HYLHZ%RDUGFDVH,Q%R\GDFODLPDQWZRUNHGIRU
WHQDQGRQHKDOIPRQWKVZDVLQWHUPLWWHQWO\RQOHDYHIRUD
EDFNLQMXU\EXWDFFUXHGDQDGGLWLRQDOILIW\GD\VRIZRUNIURP
WKHWLPHKHLQMXUHGKLVEDFNWRWKHWLPHKHILQDOO\UHVLJQHG
7KH%RDUGIRXQGWKDW,VODQG&UHHN&RDOZDVWKHUHVSRQVLEOH
RSHUDWRUDQGWKDW,VODQG&UHHN&RDOFRXOGQRWHVFDSHOLDELOLW\
1R .HQWODQG(ONKRUQ&RDO
&RUSY+DOOHWDO

E\IDLOLQJWRFRXQWWKH³GRZQWLPH´IURPWKHFODLPDQW¶VLQMXU\
WRKLVILQDOUHVLJQDWLRQ
7KH $/- GLVWLQJXLVKHG %R\G VWDWLQJ WKDW LQ %R\G ³WKH
PLQHU FRQWLQXHG WR ZRUN IRU WKH HPSOR\HU DIWHU WKH ZRUN
LQMXU\DQGZDVNHSWRQWKHSD\UROOGXULQJWKHWLPHKHZDV
LQMXUHG WKLV WLPH FXOPLQDWHG LQ D FRQWLQXRXV \HDU RI
HPSOR\PHQW´ -$ DW +DOO RQ WKH RWKHU KDQG TXLW
ZRUNLQJIRU'HVSDUDGR)XHOVDIWHUKLVLQMXU\DQGWKXVGLGQRW
UHPDLQRQWKHSD\UROOIRUHYHQGD\VOHWDORQHWKH\HDU
UHTXLUHGE\&)5† E
.HQWODQGDUJXHVWKDWQRHYLGHQFHVKRZV'HVSDUDGR)XHOV
WRRN+DOORIIWKHSD\UROODIWHUKLVLQMXU\RQO\WKDW'HVSDUDGR
)XHOVGLGQRWKDYHDWLPHVKHHWIRU+DOO¶VSK\VLFDOSUHVHQFH
DIWHU KLV LQMXU\ 7KLV LV ZURQJ 7KH ERRNNHHSHU IRU
'HVSDUDGR)XHOVVXEPLWWHGHYLGHQFHVKRZLQJWKDW+DOOZDV
QRWRQWKHSD\UROOIRUWKHUHTXLUHGRQH\HDUSHULRG -$DW
± 6SHFXODWLRQ DV WR ZKHWKHU +DOO UHPDLQHG RQ WKH
SD\UROO LV QRW HYLGHQFH WKDW KH ZDV RQ WKH SD\UROO
)XUWKHUPRUHHYHQLI+DOOKDGZRUNHGLQWKHPLQHVHYHU\GD\
GXULQJWKHSHULRGLQZKLFKKHZDVRQWKHSD\UROODW'HVSDUDGR
)XHOVIURP0DUFKWR-XO\WKRVHGDWHVZRXOG
RQO\HTXDOGD\V²LQGLVSXWDEO\OHVVWKDQWKHUHTXLUHG
GD\VXQGHU&)5† E
$GGLWLRQDOO\WKHUHJXODWLRQVUHTXLUHWKDWWKHPLQHUZRUNIRU
DQHPSOR\HUIRUDSHULRGRID\HDUZLWKWKHPLQHUUHFHLYLQJ
SD\IRUDWOHDVWGD\VRIWKDWSHULRGIRU³ZRUNDVDPLQHU´
&)5† E VWDWLQJWKDW³LIWKHPLQHU
ZDVQRWHPSOR\HGIRUDSHULRGRIDWOHDVWZRUNLQJ
GD\VVXFKRSHUDWRURUHPSOR\HUVKDOOEHGHWHUPLQHGWRKDYH
HVWDEOLVKHGWKDWWKHPLQHUZDVQRWUHJXODUO\HPSOR\HGIRUD
FXPXODWLYH\HDU´DQGIXUWKHUVWDWLQJWKDW³>D@μZRUNLQJGD\¶
PHDQVDQ\GD\RUSDUWRIDGD\IRUZKLFKDPLQHUUHFHLYHGSD\
IRUZRUNDVDPLQHU´
,WVWUDLQVWKHSODLQODQJXDJHRIWKHUHJXODWLRQWRDVVHUWWKDW
WKHGLVDELOLW\EHQHILWV'HVSDUDGR)XHOVSDLGWR+DOOZHUHSD\

-- 12 of 12 --

Setzen Sie Ihre Recherche in ChatGPT oder Claude fort

Verbinden Sie Omnilex, um den Rechtskorpus über Ihren KI-Assistenten zu durchsuchen.