Der KI-Arbeitsbereich für Juristen
- Rechtsrecherche mit Zugriff auf über 1 Million Quellen
- Dokumentenautomatisierung
- Mandatsverwaltung
- Gehostet in der EU und der Schweiz
14 Tage kostenlos testen (10 Fragen/Tag während der Testphase)
Der KI-Arbeitsbereich für Juristen
14 Tage kostenlos testen (10 Fragen/Tag während der Testphase)
98-4053•03a0134p.06
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
721< 0 32:(//
3HWLWLRQHU$SSHOODQW
Y
7(55< &2//,16:DUGHQ
5HVSRQGHQW$SSHOOHH
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL
1R²+HUPDQ-:HEHU'LVWULFW-XGJH
$UJXHG1RYHPEHU
'HFLGHGDQG)LOHG0D\
%HIRUH'$8*+75(<&/$<DQG*,/0$1&LUFXLW
-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('0DUN$9DQGHU/DDQ',16025( 6+2+/
&LQFLQQDWL 2KLR IRU $SSHOODQW &KDUOHV / :LOOH
$77251(<*(1(5$/¶62)),&(2)2+,2&$3,7$/
&5,0(6 6(&7,21 &ROXPEXV 2KLR IRU $SSHOOHH
21 %5,() 0DUN $ 9DQGHU /DDQ ',16025(
6+2+/ &LQFLQQDWL 2KLR -DPHV 9 6FKXVWHU 7$)7
67(77,1,86 +2//,67(5&LQFLQQDWL2KLR:LOOLDP6
3RZHOOY&ROOLQV 1R
/D]DURZ38%/,&'()(1'(5¶62)),&(&ROXPEXV2KLR
IRU$SSHOODQW&KDUOHV/:LOOH$77251(<*(1(5$/¶6
2)),&( 2) 2+,2 &$3,7$/ &5,0(6 6(&7,21
&ROXPEXV2KLRIRU$SSHOOHH
&/$< - GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
*,/0$1 - MRLQHG '$8*+75(< - SS
GHOLYHUHGDVHSDUDWHRSLQLRQFRQFXUULQJLQSDUWDQGGLVVHQWLQJ
LQSDUW
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
&/$<&LUFXLW-XGJH3HWLWLRQHU7RQ\03RZHOODSSHDOV
IURP WKH GLVWULFW FRXUW¶V RUGHU GHQ\LQJ KLV PRWLRQ IRU
UHFRQVLGHUDWLRQRIWKHFRXUW¶VMXGJPHQWGHQ\LQJ3HWLWLRQHU¶V
PRWLRQIRUDQHYLGHQWLDU\KHDULQJDQGGLVFRYHU\DVZHOODVKLV
SHWLWLRQIRUDZULWRIKDEHDVFRUSXVEURXJKWSXUVXDQWWR
86&3HWLWLRQHUZDVFRQYLFWHGRQWZRFRXQWVRI
DJJUDYDWHGPXUGHUDPRQJRWKHUFRXQWVDQGZDVVHQWHQFHG
WR GHDWK 2Q ERWK GLUHFW DSSHDO DQG FROODWHUDO UHYLHZ WKH
2KLR FRXUWV DIILUPHG 3HWLWLRQHU¶V FRQYLFWLRQ 7KH 8QLWHG
6WDWHV'LVWULFW&RXUWIRUWKH6RXWKHUQ'LVWULFWRI2KLRGHQLHG
KLVSHWLWLRQIRUDZULWRIKDEHDVFRUSXVDQGWKHUHDIWHULVVXHG
DFHUWLILFDWHRISUREDEOHFDXVHSXUVXDQWWR86&
2QDSSHDO3HWLWLRQHUUDLVHVQXPHURXVDVVLJQPHQWVRIHUURU
LQFOXGLQJ ZKHWKHU KH ZDV GHQLHG GXH SURFHVV E\ EHLQJ
GHSULYHGRIWKHH[SHUWSV\FKRORJLFDODVVLVWDQFHUHFRJQL]HGE\
WKH8QLWHG6WDWHV6XSUHPH&RXUWLQ$NHY2NODKRPD
86 DQGZKHWKHUKHZDVGHSULYHGRIWKHHIIHFWLYH
DVVLVWDQFHRIFRXQVHODWWKHJXLOWDQGVHQWHQFLQJSKDVHVRIKLV
WULDO $OWKRXJK ZH DJUHH ZLWK WKH GLVWULFW FRXUW WKDW
3HWLWLRQHU¶VFKDOOHQJHVWRWKHJXLOWSKDVHRIKLVWULDOGRQRW
PHULWKDEHDVUHOLHIZHFRQFOXGHWKDW3HWLWLRQHUZDVGHQLHG
KLVULJKWWRSV\FKRORJLFDODVVLVWDQFHDQGHIIHFWLYHDVVLVWDQFH
RIFRXQVHOGXULQJWKHVHQWHQFLQJSKDVHRIKLVWULDODQGWKDW
WKHVWDWHWULDOFRXUWLPSURSHUO\GHQLHG3HWLWLRQHU¶VPRWLRQIRU
DFRQWLQXDQFHSULRUWRWKHVHQWHQFLQJSKDVH$FFRUGLQJO\ZH
-- 1 of 23 --
1R 3RZHOOY&ROOLQV
5(9(56( WKH GLVWULFW FRXUW¶V GHQLDO RI WKH ZULW RQ WKHVH
EDVHV DQG ZH 5(0$1' WR WKH GLVWULFW FRXUW ZLWK
LQVWUXFWLRQVWRLVVXHDZULWRIKDEHDVFRUSXVYDFDWLQJ3RZHOO¶V
GHDWK VHQWHQFH XQOHVV WKH 6WDWH RI 2KLR FRQGXFWV D QHZ
SHQDOW\SURFHHGLQJZLWKLQGD\VRIUHPDQG
,%$&.*5281'
2Q -XO\ 3HWLWLRQHU ZDV DUUHVWHG LQ &LQFLQQDWL
2KLRLQFRQQHFWLRQZLWKWKHGHDWKRIVHYHQ\HDUROG7ULQD
'XNHV 7KH 2KLR 6XSUHPH &RXUW H[SODLQHG WKH SHUWLQHQW
IDFWVOHDGLQJWR3HWLWLRQHU¶VDJJUDYDWHGPXUGHUFRQYLFWLRQDV
IROORZV
2Q-XO\7ULQD'XNHVDJHVHYHQZDVSOD\LQJ
ZLWKKHUFRXVLQ0DUFRUVKD'XNHVDQGDQRWKHUFKLOGLQ
IURQW RI WKH 'XNHV IDPLO\¶V KRPH LQ &LQFLQQDWL
$SSHOODQW 7RQ\ 0 3RZHOO DSSURDFKHG WKH WKUHH
FKLOGUHQ DQG DVNHG 7ULQD DQG 0DUFRUVKD LI WKH\ NQHZ
KRZ WR ULGH D ELNH 7ULQD UHSOLHG ³<HV´ 7KH WKUHH
FKLOGUHQIROORZHG3RZHOODURXQGWKHFRUQHUWR:HVW
/LEHUW\6WUHHW
3RZHOODVNHG7ULQDWRFRPHXSVWDLUVZLWKKLPDQGWROG
WKHRWKHUWZRWROHDYH+HOHG7ULQDWRWKHIRXUWKIORRU
DQGWROGKHUWRWDNHRIIKHUFORWKHV +HODWHUDGPLWWHGWR
SROLFHWKDWKHKDGLQWHQGHGWR³IXFN´7ULQD 7ULQDFULHG
DQGVDLGVKHZDQWHGWRJRKRPH
0HDQZKLOH 0DUFRUVKD KDG WROG KHU JUDQGIDWKHU
5REHUW 'XNHV NQRZQ DV ³%LJ 'XNH´ WR KLV
JUDQGFKLOGUHQ ZKHUH 7ULQD KDG JRQH 'XNHV DQG
0DUFRUVKD¶V EURWKHU 0DUYLQ ZHQW WR LQYHVWLJDWH
0DUFRUVKDOHGWKHPWRWKHEXLOGLQJZKHUH3RZHOOKDG
WDNHQ7ULQD
'XNHV ZHQW EHKLQG WKH EXLOGLQJ DQG FDOOHG 7ULQD¶V
QDPH7ULQDFDOOHGEDFN³%LJ'XNH%LJ'XNH´3RZHOO
JUDEEHGKHUPRXWKWRTXLHWKHUFULHV'XNHVHQWHUHGWKH
EXLOGLQJDQGUDQXSVWDLUVIROORZHGE\0DUFKRUVKDDQG
0DUYLQ+HDULQJWKHLUDSSURDFK3RZHOOSLFNHGXS7ULQD
3RZHOOY&ROOLQV 1R
$VKHGLGVKHGHIHFDWHGRQKLP+HWKUHZKHURXWWKH
ZLQGRZ
:KHQ'XNHVDQGWKHFKLOGUHQUHDFKHGWKHWKLUGIORRU
ODQGLQJWKH\KHDUGDFUDVK7KHQ3RZHOOZHDULQJQR
VKLUWUDQGRZQVWDLUVSDVWWKHPVD\LQJWKDWVRPHRQHKDG
EHHQEHDWLQJKLPXS7KH 'XNHVHVSURFHHGHGWRWKH
IRXUWKIORRU/RRNLQJRXWDZLQGRZWKH\VDZ7ULQD¶V
QXGH ERG\ O\LQJ QH[W WR VRPH JDUEDJH FDQV 7KH
'XNHVHV VXPPRQHG WKH SROLFH DQG SDUDPHGLFV
$OWKRXJK7ULQDZDVVWLOOEUHDWKLQJZKHQWKHSDUDPHGLFV
DUULYHGVKHZDVGHDGE\WKHQH[WGD\
0HDQZKLOH3RZHOOZDVOHDYLQJWKHEXLOGLQJ2QKLV
ZD\RXWKHHQFRXQWHUHG6KLUOH\/HHZKROLYHGWKHUH
+HSXVKHGKHUDVLGHDQGPXPEOHG³,GLGZKDW,LQWHQGHG
WRGRWRWKDWELWFK´7KHQKHUDQGRZQWKHVWUHHW3ROLFH
ODWHUIRXQG3RZHOOKLGLQJEHKLQGWKHUHIULJHUDWRULQKLV
PRWKHU¶VDSDUWPHQW
'HSXW\&RURQHU5RVV=XPZDOWSHUIRUPHGDQDXWRSV\
RQ7ULQD¶VERG\+HIRXQGQXPHURXVSHWHFKLDRUVPDOO
KHPRUUKDJHVRQ7ULQD¶VIDFH+HDOVRIRXQGEUXLVHVDQG
DEUDVLRQVRQWKHLQQHUVXUIDFHRIWKHOLSVDQGVL[VPDOO
VFUDWFKHV RQ WKH QHFN $FFRUGLQJ =XPZDOW WKHVH
LQMXULHV LQGLFDWHG WKDW 7ULQD KDG EHHQ SDUWLDOO\
DVSK\[LDWHGE\DKDQGFODPSHGRYHUKHUPRXWK
=XPZDOWDOVRIRXQGDLQFKODFHUDWLRQDORQJ7ULQD¶V
FKHVW DQG QXPHURXV RWKHU ODFHUDWLRQV EUXLVHV DQG
DEUDVLRQVRQ7ULQD¶VKHDGDQGERG\FRQVLVWHQWZLWKD
IDOO=XPZDOWFRQFOXGHGWKDW7ULQD¶VGHDWKUHVXOWHGIURP
³EOXQWLPSDFWWRWKHKHDG>DQG@WKHWUXQNZLWKPXOWLSOH
LQMXULHVDQGVPRWKHULQJ´
6WDWHY3RZHOO1(G 2KLR DOWHUDWLRQ
LQ RULJLQDO 3HWLWLRQHU DJUHHV ZLWK WKH UHFLWDWLRQ RI IDFWV
IRXQGLQWKLVRSLQLRQDQGGRHV QRWGHQ\RQDSSHDOWKDWKH
FRPPLWWHGWKHDFWVZKLFKOHGWR7ULQD¶VGHDWK
-- 2 of 23 --
1R 3RZHOOY&ROOLQV
7ULDO3URFHHGLQJV
2Q6HSWHPEHUD+DPLOWRQ&RXQW\2KLRJUDQG
MXU\UHWXUQHGDILYHFRXQWLQGLFWPHQWFKDUJLQJ3HWLWLRQHUZLWK
WKH IROORZLQJ YLRODWLRQV RI WKH 2KLR 5HYLVHG &RGH
DJJUDYDWHG PXUGHU GXULQJ D NLGQDSSLQJ LQ YLRODWLRQ RI
ZLWK D NLGQDSSLQJ VSHFLILFDWLRQ &RXQW 2QH
DJJUDYDWHGPXUGHUGXULQJDUDSHLQYLRODWLRQRI
ZLWK D UDSH VSHFLILFDWLRQ &RXQW 7ZR NLGQDSSLQJ E\
UHVWUDLQLQJWKHYLFWLPLQYLRODWLRQRI &RXQW7KUHH
NLGQDSSLQJE\UHPRYLQJWKHYLFWLPIURPWKHSODFHZKHUHVKH
ZDVIRXQGLQYLRODWLRQRI &RXQW)RXU DQGUDSHLQ
YLRODWLRQRI &RXQW)LYH 3HWLWLRQHUZDVDGMXGJHG
LQGLJHQWDQGZDVDSSRLQWHGFRXQVHOE\WKH+DPLOWRQ&RXQW\
&RXUW+HHQWHUHGDSOHDRIQRWJXLOW\WRWKHFKDUJHV
2Q6HSWHPEHU3HWLWLRQHU¶VWULDOFRXQVHOILOHGD
ZULWWHQ PRWLRQ IRU DSSRLQWPHQW RI D SV\FKLDWULVW RU
SV\FKRORJLVWWRDVVLVWLQ3HWLWLRQHU¶VGHIHQVH7KHSUHVLGLQJ
MXGJHRUDOO\GHQLHGWKHPRWLRQRQ6HSWHPEHU/DWHU
RQ 'HFHPEHU FRXQVHO DVNHG WKH WULDO FRXUW WR
UHFRQVLGHULWVGHFLVLRQGHQ\LQJSV\FKRORJLFDORUSV\FKLDWULF
DVVLVWDQFH$WWKDWWLPH3HWLWLRQHU¶VGHIHQVHFRXQVHOQRWHG
WKDW WKH\ KDG UHFHQWO\ UHFHLYHG 3HWLWLRQHU¶V MXYHQLOH FRXUW
UHFRUGV DQG SV\FKRORJLFDO HYDOXDWLRQV DQG WKDW WKRVH
GRFXPHQWV UHYHDOHG PHQWDO GHILFLHQFLHV &RXQVHO IXUWKHU
FODLPHGWKDWWKHVHGHILFLHQFLHVZDUUDQWHGWKHDSSRLQWPHQWRI
DQH[SHUWWRDVVLVWWKHGHIHQVHLQWKHSUHVHQWDWLRQRILWVFDVH
'HIHQVHFRXQVHODUJXHGWKDWWKHVHHYDOXDWLRQVDOVRVXJJHVWHG
D³QHXURORJLFDOFRPSRQHQWXQGHUO\LQJVRPHRIKLVDFWLQJRXW
EHKDYLRU´%XWWKHPRWLRQZDVDJDLQGHQLHG
5HFRJQL]LQJKRZHYHUWKDW3HWLWLRQHU¶VPHQWDOFRPSHWHQF\
KDG EHHQ SODFHG LQ LVVXH RQ 'HFHPEHU WKH WULDO
MXGJHRUGHUHGWKDW3HWLWLRQHUXQGHUJRSV\FKRORJLFDOWHVWLQJDW
WKHFRXUW¶VSV\FKLDWULFFHQWHU'U1DQF\6FKPLGWJRHVVOLQJ
D FOLQLFDO SV\FKRORJLVW DW WKH FHQWHU ZDV DSSRLQWHG DV D
³IULHQG RI WKH FRXUW´ DQG DERXW D ZHHN ODWHU SHUIRUPHG D
SV\FKRORJLFDOHYDOXDWLRQRI3HWLWLRQHU2Q-DQXDU\
GHIHQVH FRXQVHO RUDOO\ UHQHZHG WKHLU UHTXHVW IRU WKH
3RZHOOY&ROOLQV 1R
DSSRLQWPHQW RI DQ H[SHUW WR DVVLVW WKHP LQ UHYLHZLQJ 'U
6FKPLGWJRHVVOLQJ¶VUHSRUW³VRWKDW>FRXQVHO@FDQXQGHUVWDQG
H[DFWO\ZKDWLWPHDQV´ -$DW %XWWKHWULDOFRXUWRQFH
DJDLQ GHQLHG WKH RUDO PRWLRQ ³IRU D SV\FKLDWULVW RU
SV\FKRORJLVWWREHDW>WKHLU@HOERZ>V@GXULQJWKHFRXUVHRIWKH
WULDORUWRKDYHD&RXUWDSSRLQWHGSV\FKLDWULVWRUSV\FKRORJLVW
WRGLVFXVVWKLV&HQWUDO3V\FKLDWULFUHSRUWZLWK\RX´ -$DW
'HIHQVHFRXQVHOWKHQILOHGDVXJJHVWLRQRILQFRPSHWHQF\
2Q-DQXDU\DSSUR[LPDWHO\RQHZHHNEHIRUHWULDO'U
6FKPLGWJRHVVOLQJWHVWLILHGLQDKHDULQJFRQFHUQLQJWKHUHVXOWV
RIKHUFRPSHWHQF\HYDOXDWLRQRI3RZHOO6KHVWDWHGWKDWVKH
H[DPLQHG3RZHOOIRUDSSUR[LPDWHO\WZRDQGRQHKDOIKRXUV
DQG IRXQG KLP DOHUW DEOH WR FRPPXQLFDWH DQG DEOH WR
FRPSUHKHQGQRWRQO\WKHFKDUJHVDJDLQVWKLPEXWDOVRWKHGLUH
FRQVHTXHQFHVRIDJXLOW\YHUGLFW6KHDOVRQRWHGWKDWGXHWR
DSV\FKRORJLFDOGHILFLW3HWLWLRQHUKDG³DFRQGXFWGLVRUGHU
XQVRFLDEO\DJJUHVVLYHRUWRXVHWKHDGXOWWHUPKHKDVDQDQWL
VRFLDO SHUVRQDOLW\´ ,Q H[SODQDWLRQ 'U 6FKPLGWJRHVVOLQJ
GHILQHGDQDQWLVRFLDOSHUVRQDOLW\DVIROORZV
,W LV D SHUVRQ ZKR HVVHQWLDOO\ DFWV RXW WKH SUREOHPV
LQVWHDGRISV\FKRORJLFDOO\DFWLQJLWRXW7KH\DFWWKHP
RXWEHFDXVHRIJXLOWDQGDQ[LHW\DQGWKH\ODFNHPSDWK\
VR WKH\ GR QRW DSSUHFLDWH WKH IHHOLQJV RI RWKHU SHRSOH
ZKHQWKH\DUHGRLQJVRPHWKLQJ
7KH\WHQGWREHSXVKHGDQGSXOOHGDQGZDQWVKRUWWHUP
JRDOV UDWKHU WKDQ ORQJWHUP JRDOV 7KH\ DUH UDWKHU
LPSXOVLYHLQWKHLUDFWVPHDQLQJWKH\GRQ¶WVXEMHFWWKHLU
DFWVWRFULWLFDO>WKLQNLQJ@7KH\MXVWVRUWRIGRVRPHWKLQJ
EHFDXVHWKH\ZDQWWRRUIHHOOLNHLW
-$DW )LQDOO\VKHWHVWLILHGWKDWDOWKRXJK3HWLWLRQHU
KDVDPLOGPHQWDOGHIHFWKLVFRQGLWLRQGLGQRWPHHWWKHOHJDO
GHILQLWLRQRILQVDQLW\EHFDXVHWKDWGHIHFWLVQRW³RIVXIILFLHQW
VHYHULW\WRFDXVHKLPWREHLQFDSDEOHRINQRZLQJULJKWIURP
ZURQJRUWRUHVWUDLQKLPVHOIIURPGRLQJDFHUWDLQDFW´ -$
DW
-- 3 of 23 --
1R 3RZHOOY&ROOLQV
$IWHU'U6FKPLGWJRHVVOLQJWHVWLILHGUHJDUGLQJ3HWLWLRQHU¶V
FRPSHWHQF\ WR VWDQG WULDO FRXQVHO RQFH DJDLQ UHTXHVWHG
SV\FKRORJLFDO DVVLVWDQFH FODLPLQJ LJQRUDQFH DV WR FHUWDLQ
SV\FKRORJLFDO WHUPV DQG DQ LQDELOLW\ WR FRPSUHKHQG 'U
6FKPLGWJRHVVOLQJ¶VUHSRUWRUWRTXHVWLRQKHURQLW7KHWULDO
MXGJHDJDLQGHQLHGWKHPRWLRQDQGIRXQG3HWLWLRQHUFRPSHWHQW
WRVWDQGWULDO
3HWLWLRQHU¶VWULDOFRPPHQFHGRQ-DQXDU\'HIHQVH
FRXQVHO FDOOHG 'U 6FKPLGWJRHVVOLQJ DV D GHIHQVH ZLWQHVV
GXULQJWKHJXLOWSKDVHRIWKHWULDODWZKLFKWLPHVKHUHSHDWHG
PXFKRIWKHLQIRUPDWLRQVKHKDGSUHYLRXVO\SURYLGHGLQWKH
SUHWULDO FRPSHWHQF\ KHDULQJ 6SHFLILFDOO\ 'U
6FKPLGWJRHVVOLQJ QRWHG WKDW 3HWLWLRQHU GLG QRW HQMR\ D
QXUWXULQJHQYLURQPHQWDVDFKLOGDQGWKDWKHZDVDGPLQLVWHUHG
7KRUD]LQHDQGRWKHUDQWLSV\FKRWLFPHGLFDWLRQVIRUDQ[LHW\
DQG EHKDYLRU FRQWURO 6KH H[SODLQHG WKDW 3HWLWLRQHU¶V
SHUIRUPDQFH RQ VWDQGDUGL]HG ,4 WHVWV VKRZHG WKDW KH
IOXFWXDWHGEHWZHHQWKHPLOGDQGERUGHUOLQHUDQJHVRIPHQWDO
UHWDUGDWLRQ)LQDOO\VKHH[SODLQHGWKDW3HWLWLRQHUH[SUHVVHG
DQWLVRFLDOEHKDYLRUWKDWKHKDG³WUXHSV\FKRORJLFDOGHILFLWV´
WKDW KH GLG QRW DSSUHFLDWH WKH IHHOLQJV RI RWKHUV KDG SRRU
LPSXOVHFRQWURODQGRYHUUHDFWHGWRVLWXDWLRQV
7KH MXU\ FRQYLFWHG 3HWLWLRQHU RQ WKH ILUVW IRXU FRXQWV DV
ZHOODVWKHOHVVHULQFOXGHGRIIHQVHRIDWWHPSWHGUDSH&RXQVHO
WKHQPRYHGWRKLUHDQHXURSV\FKLDWULVWWRDVVLVW3HWLWLRQHUDW
WKH PLWLJDWLRQ SKDVH $OWKRXJK WKH WULDO FRXUW JUDQWHG WKH
PRWLRQLWRQFHDJDLQHQJDJHG'U6FKPLGWJRHVVOLQJIURPWKH
FRXUW SV\FKLDWULF FOLQLF 7KH WULDO FRXUW UHIXVHG WR JUDQW D
FRQWLQXDQFHRIWKHVHQWHQFLQJKHDULQJWRDOORZIRUDGGLWLRQDO
WHVWLQJ RI 3HWLWLRQHU HYHQ WKRXJK 'U 6FKPLGWJRHVVOLQJ
DGPLWWHGWKDWVKHZDVQRWHTXLSSHGWRFRQGXFWWKHQHFHVVDU\
WHVWLQJ IRU WKLV SKDVH RI 3HWLWLRQHU¶V FDVH 7KH FRXUW GLG
KRZHYHU LQGLFDWH WKDW LW ZRXOG JLYH FRXQVHO¶V UHTXHVW
DGGLWLRQDOFRQVLGHUDWLRQLIWKHFRXUW¶VFOLQLFLDQLQGLFDWHGWKDW
³WKH\ GR QRW KDYH WKH IDFLOLWLHV´ WR SURSHUO\ HYDOXDWH
3HWLWLRQHU
3RZHOOY&ROOLQV 1R
7KH FRXUW LPSRVHG FRQFXUUHQW GHDWK VHQWHQFHV RQ &RXQWV 2QH DQG
7ZR 3HWLWLRQHU ZDV IXUWKHU VHQWHQFHG WR D WHUP RI WHQ WR WZHQW\ILYH
\HDUV¶ LQFDUFHUDWLRQ RQ &RXQWV 7KUHH DQG )RXU ZKLFK ZHUH PHUJHG DQG
WR D WHUP RI HLJKW WR ILIWHHQ \HDUV¶ LQFDUFHUDWLRQ RQ &RXQW )LYH 7KH
VHQWHQFHV RQ &RXQWV 7KUHH WKURXJK )LYH UDQ FRQFXUUHQW ZLWK WKH GHDWK
VHQWHQFHV RQ &RXQWV 2QH DQG 7ZR
7KH WULDO SURFHHGHG WR VHQWHQFLQJ RQ -DQXDU\
'HIHQVH FRXQVHO FDOOHG 'U 6FKPLGWJRHVVOLQJ DV LWV RQO\
ZLWQHVVGXULQJWKHVHQWHQFLQJKHDULQJ'U6FKPLGWJRHVVOLQJ
H[SODLQHGWKDWVKHZDVQRWJLYHQVXIILFLHQWWLPHWRFRQGXFWDQ
DSSURSULDWHLQYHVWLJDWLRQLQWR3HWLWLRQHU¶VPHQWDOPDNHXSWR
LQWHUYLHZQHFHVVDU\IDPLO\PHPEHUVDQGDFTXDLQWDQFHVRUWR
UXQQHHGHGGLDJQRVWLFWHVWV,QIDFWVKHDGPLWWHGGXULQJKHU
WHVWLPRQ\WKDWVKHKDGQRWHYHQWDNHQWKHWLPHWRLQWHUYLHZ
3HWLWLRQHUVLQFHWKHLQLWLDOFRPSHWHQF\HYDOXDWLRQWZRZHHNV
SULRUWRWULDO$OWKRXJK'U6FKPLGWJRHVVOLQJLQGLFDWHGWKDW
3HWLWLRQHUOLNHO\VXIIHUHGIURPVRPHRUJDQLFEUDLQG\VIXQFWLRQ
DQGWKDWVXFKDGHIHFWFRXOGEHGHWHFWHGRQO\ZLWKWHVWVWKDW
KDGQRW\HWEHHQSHUIRUPHGRQ3HWLWLRQHUVKHDOVRUHLQIRUFHG
KHU WULDO WHVWLPRQ\ WKDW 3HWLWLRQHU ZDV DEOH WR SHUIRUP
LQWHQWLRQDO SXUSRVHIXO DFWV DQG EDVLFDOO\ UHSHDWHG
LQIRUPDWLRQ WKDW VKH KDG JDWKHUHG IURP KHU FRPSHWHQF\
HYDOXDWLRQ 'U 6FKPLGWJRHVVOLQJ DGPLWWHG WKDW VKH ZDV
³GHILQLWHO\ QRW HTXLSSHG´ WR FRQGXFW WKH QHFHVVDU\
QHXURSV\FKRORJLFDOWHVWLQJIRUWKLVSKDVHRI3HWLWLRQHU¶VFDVH
-$DW 6KHDOVRFODLPHGWKDWLIVKHKDGPRUHWLPHVKH
FRXOG SURSHUO\ WHVW 3HWLWLRQHU¶V ³SV\FKRORJLFDO PDNHXS E\
FRQWDFWLQJIDPLO\PHPEHUVDQGRWKHUSHRSOH´ -$DW
$IWHU WKH PLWLJDWLRQ KHDULQJ DQG SHQDOW\ SKDVH WKH MXU\
UHFRPPHQGHGWKDW3HWLWLRQHUEHSXWWRGHDWKRQ&RXQWV2QH
DQG7ZR7KHWULDOFRXUWDFFHSWHGWKLVUHFRPPHQGDWLRQDQG
LVVXHGDQRSLQLRQH[SODLQLQJLWVMXGJPHQWDVUHTXLUHGE\2KLR
5HYLVHG&RGH )
-- 4 of 23 --
1R 3RZHOOY&ROOLQV
'LUHFW$SSHDO
)ROORZLQJKLVFRQYLFWLRQV3HWLWLRQHUWRRNDGLUHFWDSSHDO
WRWKH)LUVW$SSHOODWH'LVWULFW&RXUWLQ2KLRZKHUHKHZDV
UHSUHVHQWHGE\RQHRIKLVWULDOFRFRXQVHODVZHOODVDQHZ
VHFRQG FRXQVHO 7KHUH KH UDLVHG WKH IROORZLQJ HOHYHQ
DVVLJQPHQWVRIHUURU
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQWE\LQVWUXFWLQJWKHMXU\RQERWK
FRXQWVRIWKHDJJUDYDWHGPXUGHULQGLFWPHQWDQG
HQWHULQJFRQYLFWLRQVIRUERWKDJJUDYDWHGPXUGHU
FRXQWVRIWKHLQGLFWPHQW
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQW LQ GHQ\LQJ WKH PRWLRQ IRU
DFTXLWWDODVWRFRXQW9RIWKHLQGLFWPHQWPDGHE\
WKH GHIHQGDQWDSSHOODQW DW WKH FORVH RI DOO WKH
HYLGHQFH
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQW E\ GHQ\LQJ WKH PRWLRQV IRU
DFTXLWWDORQFRXQWV,,,DQG,9RIWKHLQGLFWPHQW
PDGHE\GHIHQGDQWDSSHOODQW
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQW LQ GHQ\LQJ WKH GHIHQGDQW
DSSHOODQW¶V PRWLRQ IRU DFTXLWWDO RQ WKH WZR
FRXQWVRINLGQDSSLQJ
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQW LQ GHQ\LQJ WKH GHIHQGDQW
DSSHOODQW¶V PRWLRQ WR FRQWLQXH WKH PLWLJDWLRQ
KHDULQJ
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQWLQIDLOLQJWRSURSHUO\LQVWUXFW
WKHMXU\DWWKHPLWLJDWLRQSKDVHUHJDUGLQJWKHLVVXH
RIPHUJHURIDJJUDYDWLQJFLUFXPVWDQFHV
3RZHOOY&ROOLQV 1R
7KHUHFRPPHQGDWLRQRIWKHGHDWKVHQWHQFHE\WKH
MXU\DQGWKHILQGLQJE\WKHFRXUWWKDWDJJUDYDWLQJ
FLUFXPVWDQFHVRXWZHLJKHGPLWLJDWLQJIDFWRUVZHUH
DJDLQVWWKHPDQLIHVWZHLJKWRIWKHHYLGHQFH
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQWLQGHQ\LQJWKHPRWLRQRIWKH
GHIHQGDQWDSSHOODQW IRU D PRWLRQ WR KDYH WKH
GHIHQGDQWUHIHUUHGIRUIXUWKHUSV\FKLDWULFWHVWLQJ
7KH FRXUW HUUHG WR WKH SUHMXGLFH RI GHIHQGDQW
DSSHOODQWLQGHQ\LQJWKHPRWLRQRIWKHGHIHQGDQW
DSSHOODQWIRUWKHDSSRLQWPHQWRIDSV\FKLDWULVWDQG
SV\FKRORJLVW SXUVXDQW WR 2KLR 5HYLVHG &RGH
6HFWLRQ
7KHWULDOFRXUWHUUHGWRWKHVXEVWDQWLDOSUHMXGLFHRI
WKH GHIHQGDQWDSSHOODQW E\ DGPLWWLQJ LQWR
HYLGHQFHLQIODPPDWRU\SKRWRJUDSKVRIWKHYLFWLP
7KH WULDO FRXUW HUUHG WR WKH SUHMXGLFH RI WKH
GHIHQGDQWDSSHOODQW LQ GHQ\LQJ WKH GHIHQGDQW
DSSHOODQW¶VPRWLRQWRGLVPLVVDWWKHFORVHRIWKH
VWDWH¶VFDVH
-$DW
2Q$XJXVWWKH2KLR&RXUWRI$SSHDOVDIILUPHG
WKHWULDOFRXUW¶VMXGJPHQW6SHFLILFDOO\WKHFRXUWRIDSSHDOV
IRXQGWKDWWKHVHDVVLJQPHQWVRIHUURUZHUHQRWPHULWRULRXV
WKDWWKHDJJUDYDWLQJFLUFXPVWDQFHVRXWZHLJKHGWKHPLWLJDWLQJ
IDFWRUVEH\RQGDUHDVRQDEOHGRXEWDQGWKDWWKHGHDWKVHQWHQFH
ZDV QHLWKHU H[FHVVLYH QRU GLVSURSRUWLRQDWH WR WKH SHQDOW\
LPSRVHGLQVLPLODUFDVHVDQGZDVWKHDSSURSULDWHSHQDOW\
3HWLWLRQHUVRXJKWOHDYHWRDSSHDOZLWKWKH2KLR6XSUHPH
&RXUWSUHVHQWLQJWKHIROORZLQJVHYHQLVVXHV
7KH IDLOXUH WR JUDQW D VKRUW FRQWLQXDQFH RI WKH
PLWLJDWLRQ KHDULQJ HIIHFWLYHO\ GHQLHV WKH JUHDW
ODWLWXGH LQ WKH SUHSDUDWLRQ RI HYLGHQFH RI WKH
-- 5 of 23 --
1R 3RZHOOY&ROOLQV
PLWLJDWLQJ IDFWRUV JXDUDQWHHG E\ 2KLR 5HYLVHG
&RGH DQG 2KLR 5HYLVHG &RGH
'
7KHWULDOFRXUWHUUHGLQRYHUUXOLQJWKHDSSHOODQW¶V
SUHWULDOPRWLRQVWRKLUHDSV\FKLDWULVWWRDVVLVWLQ
WKHSUHSDUDWLRQRIWKHGHIHQVHDIWHUWKHDSSHOODQW
GHPRQVWUDWHG WR WKH FRXUW WKDW KLV VDQLW\ DW WKH
WLPHRIWKHRIIHQVHZDVWREHDVLJQLILFDQWIDFWRUDW
WULDO
5HDVRQDEOH H[SHUW DVVLVWDQFH LV GHQLHG WKH
DSSHOODQW ZKHQ WKH FRXUW IDLOV WR IROORZ WKH
UHFRPPHQGDWLRQVRILWVRZQDSSRLQWHGH[SHUW
7KHILQGLQJRIJXLOWE\WKHMXU\RIDWWHPSWHGUDSH
LQYLRODWLRQRI2KLR5HYLVHG&RGHLV
DJDLQVWWKHPDQLIHVWZHLJKWRIWKHHYLGHQFH
7KHILQGLQJRIJXLOW\E\DMXU\RIDWWHPSWHGUDSH
DQG NLGQDSSLQJ ERWK RI ZKLFK DUH DJJUDYDWHG
FLUFXPVWDQFHV LV LQ YLRODWLRQ RI 2KLR 5HYLVHG
&RGH $ VLQFHERWKDWWHPSWHGUDSHDQG
NLGQDSSLQJDUHFULPHVRIVLPLODULPSRUWIRUZKLFK
RQO\RQH FRQYLFWLRQFDQEHREWDLQHG
7KHILQGLQJRIJXLOW\E\WKHMXU\RIWZR FRXQWV
RI NLGQDSSLQJ LV DJDLQVW WKH ZHLJKW RI WKH
HYLGHQFH
7KHWULDOFRXUWDQGWKHFRXUWRIDSSHDOVLQFRUUHFWO\
ZHLJKHG WKH DJJUDYDWLQJ FLUFXPVWDQFHV DQG WKH
PLWLJDWLQJIDFWRUVDQGWKHUHIRUHWKHVHQWHQFHRI
GHDWK LV DJDLQVW WKH PDQLIHVW ZHLJKW RI WKH
HYLGHQFH
-$DW
2Q0DUFKWKH2KLR6XSUHPH&RXUWDIILUPHGWKH
FRXUWRIDSSHDO¶VGHFLVLRQDQGVHW3HWLWLRQHU¶VH[HFXWLRQGDWH
DV -XQH 2Q 0DUFK 3HWLWLRQHU ILOHG D
3RZHOOY&ROOLQV 1R
PRWLRQIRUUHFRQVLGHUDWLRQZLWKWKHVXSUHPHFRXUWZKHUHLQ
KHUDLVHGWKHIROORZLQJVLQJOHLVVXH
:KHWKHUWKH$SSHOODQWZDVGHQLHGGXHSURFHVVRIODZE\
WKH&RXUWIDLOLQJWRJUDQWDFRQWLQXDQFHRIWKHSHQDOW\
KHDULQJ WR VHFXUH DGGLWLRQDO HYLGHQFH UHODWHG WR D
PLWLJDWLQJIDFWRU
-$DW
7KH2KLR6XSUHPH&RXUWGHQLHGWKLVPRWLRQRQ$SULO
3HWLWLRQHU ZDV JUDQWHG D PRWLRQ IRU VWD\ RI WKH
H[HFXWLRQ SHQGLQJ UHYLHZ RI KLV SHWLWLRQ IRU D ZULW RI
FHUWLRUDUL LQ WKH 8QLWHG 6WDWHV 6XSUHPH &RXUW 3HWLWLRQHU
VRXJKW UHYLHZ RI WZR TXHVWLRQV EHIRUH WKH 8QLWHG 6WDWHV
6XSUHPH&RXUW
,V$NHY2NODKRPD86 DQGWKH
6L[WK(LJKWKDQG)RXUWHHQWK$PHQGPHQWVWRWKH
8QLWHG6WDWHV&RQVWLWXWLRQVDWLVILHGE\WKH7ULDO
&RXUWDSSRLQWLQJDVWKHVROHH[SHUWWRDVVLVWWKH
GHIHQVH LQ WKH VHQWHQFLQJ SKDVH D SV\FKRORJLVW
ZKR DGPLWV WKDW IXUWKHU H[SHUW DVVLVWDQFH LV
QHFHVVDU\WRUHQGHUFRPSHWHQWRSLQLRQ"
0D\ D VWDWH SUHFOXGH D FDSLWDO GHIHQGDQW IURP
SUHVHQWLQJ PLWLJDWLQJ HYLGHQFH LQ WKH SHQDOW\
SKDVH E\ GHQ\LQJ D FRQWLQXDQFH ZKLFK GHIHQVH
FRXQVHOKDVGHPRQVWUDWHGWKURXJKSV\FKRORJLFDO
WHVWLPRQ\ LV QHFHVVDU\ LQ RUGHU WR GHYHORS WKDW
PLWLJDWLQJHYLGHQFH"
-$ DW 7KH 6XSUHPH &RXUW GHQLHG 3HWLWLRQHU¶V
DSSOLFDWLRQIRUDZULWRIFHUWLRUDUL
6WDWH3RVW&RQYLFWLRQ3URFHHGLQJV
2Q -XQH 3HWLWLRQHU ILOHG D SHWLWLRQ IRU SRVW
FRQYLFWLRQUHOLHILQDQ2KLRVWDWHFRXUWSUHVHQWLQJWKLUW\ILYH
FODLPVIRUUHYLHZ7KHWULDOFRXUWKHOGDQHYLGHQWLDU\KHDULQJ
RQ 0DUFK DQG $SULO VROHO\ RQ WKH FODLP WKDW
-- 6 of 23 --
1R 3RZHOOY&ROOLQV
3HWLWLRQHUVXIIHUHGIURPRUJDQLFEUDLQGDPDJH7KHWULDOFRXUW
GHWHUPLQHGWKDW3HWLWLRQHUGLGQRWVXIIHUIURPRUJDQLFEUDLQ
GDPDJH7KHFRXUWWKHUHIRUHIRXQGWKDW3HWLWLRQHUZDVQRW
HQWLWOHGWRSRVWFRQYLFWLRQUHOLHIDQGGHQLHGKLVSHWLWLRQRQ
-XQH
3HWLWLRQHU DSSHDOHG WKLV GHFLVLRQ WR WKH 2KLR &RXUW RI
$SSHDOV SUHVHQWLQJ WHQ DVVLJQPHQWV RI HUURU %HIRUH WKH
FRXUW UHQGHUHG LWV GHFLVLRQ KRZHYHU 3HWLWLRQHU ILOHG DQ
DSSOLFDWLRQIRUGHOD\HGUHFRQVLGHUDWLRQLQZKLFKKHFODLPHG
WKDWKHKDGEHHQGHQLHGWKHHIIHFWLYHDVVLVWDQFHRIFRXQVHORQ
KLV GLUHFW DSSHDO +H DOOHJHG QLQHW\ILYH LVVXHV WKDW KLV
FRXQVHOVKRXOGKDYHSXUVXHGRQGLUHFWDSSHDO
2Q$XJXVWWKHFRXUWRIDSSHDOVLVVXHGDGHFLVLRQ
GHQ\LQJWKHSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHIILQGLQJWKDW
QRQHRIWKHDVVLJQPHQWVRIHUURUZHUHZHOOWDNHQ3HWLWLRQHU
WKHQ DSSHDOHG WR WKH 2KLR 6XSUHPH &RXUW SUHVHQWLQJ WHQ
LVVXHV7KHVXSUHPHFRXUWRYHUUXOHGWKHPRWLRQ
7KHFRXUWRIDSSHDOVWKHQGHQLHG3HWLWLRQHU¶VDSSOLFDWLRQIRU
GHOD\HGUHFRQVLGHUDWLRQRQ)HEUXDU\ILQGLQJWKDWKH
KDGIDLOHGWRVKRZJRRGFDXVHIRUILOLQJWKHDSSOLFDWLRQPRUH
WKDQ QLQHW\ GD\V DIWHU WKH FRXUW¶V MXGJPHQW KDG EHHQ
MRXUQDOL]HGDQGPRUHWKDQWKUHH\HDUVDIWHUWKH2KLR6XSUHPH
&RXUWKDGGHFLGHGKLVGLUHFWDSSHDO3HWLWLRQHUILOHGDPRWLRQ
IRUUHKHDULQJZKLFKWKHFRXUWRIDSSHDOVGHQLHGRQ$SULOO
2Q0D\3HWLWLRQHUUDLVHGILYHSURSRVLWLRQVRIODZ
EHIRUH WKH 2KLR 6XSUHPH &RXUW UHJDUGLQJ WKH FRXUW RI
DSSHDOV¶GHQLDORIKLVDSSOLFDWLRQIRUGHOD\HGUHFRQVLGHUDWLRQ
7KH VXSUHPH FRXUW DIILUPHG WKH MXGJPHQW RI WKH FRXUW RI
DSSHDOV RQ $XJXVW 3HWLWLRQHU ILOHG D PRWLRQ IRU
UHFRQVLGHUDWLRQ ZKLFK WKH VXSUHPH FRXUW GHQLHG RQ
6HSWHPEHU7KHVXSUHPHFRXUWWKHQVHW3HWLWLRQHU¶V
H[HFXWLRQIRU-DQXDU\
3RZHOOY&ROOLQV 1R
+DEHDV&RUSXV3HWLWLRQ
2Q'HFHPEHU3HWLWLRQHUILOHGDPRWLRQIRUVWD\RI
H[HFXWLRQDQGDSHWLWLRQIRUZULWRIKDEHDVFRUSXVSXUVXDQWWR
86&LQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH
6RXWKHUQ'LVWULFWRI2KLR$KHDULQJZDVKHOGRQ3HWLWLRQHU¶V
PRWLRQIRUWKHVWD\DQGWKHGLVWULFWFRXUWWKHUHDIWHUJUDQWHG
WKHPRWLRQRQ'HFHPEHU5HVSRQGHQWZDVRUGHUHG
WRILOHKLVUHWXUQRIZULWE\0DUFK,QKLVSHWLWLRQIRU
DZULWRIKDEHDVFRUSXVSHWLWLRQHUUDLVHGWKLUWHHQJURXQGVIRU
UHOLHI WKRVH UHOHYDQW IRU SXUSRVHV RI WKLV DSSHDO EHLQJ DV
IROORZV
7KH IDLOXUH DQG UHIXVDO RI WKH VWDWH FRXUW WR
SURYLGH 3HWLWLRQHU DQ LQGLJHQW ZLWK DQ H[SHUW
SV\FKLDWULVWRUSV\FKRORJLVWWRDVVLVWLQSUHSDUDWLRQ
DQGRUSUHVHQWDWLRQRIWKHGHIHQVHGXULQJWKHJXLOW
SKDVH RI WKH FDVH ZDV D YLRODWLRQ RI 3HWLWLRQHU¶V
ULJKWVXQGHUWKH)LIWK6L[WK(LJKWKDQG)RXUWHHQWK
$PHQGPHQWVWRWKH8QLWHG6WDWHV&RQVWLWXWLRQ
7KH IDLOXUH DQG UHIXVDO RI WKH VWDWH FRXUW WR
SURYLGH 3HWLWLRQHU DQ LQGLJHQW ZLWK DQ H[SHUW
SV\FKLDWULVWRUSV\FKRORJLVWWRDVVLVWLQSUHSDUDWLRQ
DQGRUSUHVHQWDWLRQRIWKHGHIHQVHGXULQJWKHSHQDOW\
SKDVH RI WKH FDVH ZDV D YLRODWLRQ RI 3HWLWLRQHU¶V
ULJKWVXQGHUWKH)LIWK6L[WK(LJKWKDQG)RXUWHHQWK
$PHQGPHQWVWRWKH8QLWHG6WDWHV&RQVWLWXWLRQ
7KHIDLOXUHDQGUHIXVDORIWKHVWDWHFRXUWWRJUDQW
WKHSHWLWLRQHUDFRQWLQXDQFHDQGDQRSSRUWXQLW\WR
FRQGXFW DGGLWLRQDO SV\FKLDWULF WHVWLQJ DQG
LQYHVWLJDWLRQLQFRQQHFWLRQZLWKSUHVHQWDWLRQRIKLV
GHIHQVHDWWKHPLWLJDWLRQKHDULQJZDVDYLRODWLRQRI
3HWLWLRQHU¶VULJKWVXQGHUWKH)LIWK6L[WK(LJKWKDQG
)RXUWHHQWK $PHQGPHQWV WR WKH 8QLWHG 6WDWHV
&RQVWLWXWLRQ
-- 7 of 23 --
1R 3RZHOOY&ROOLQV
3HWLWLRQHU VXIIHUV IURP RUJDQLF EUDLQ GDPDJH
DQG ERUGHUOLQH RU PLOG PHQWDO UHWDUGDWLRQ
,PSRVLWLRQRIWKHGHDWKVHQWHQFHRQ3HWLWLRQ>VLF@LV
DYLRODWLRQRIWKH3HWLWLRQHU¶VULJKWVXQGHUWKH)LIWK
6L[WK(LJKWKDQG)RXUWHHQWK$PHQGPHQWVWRWKH
8QLWHG6WDWHV&RQVWLWXWLRQ
3HWLWLRQHU ZDV SURYLGHG ZLWK LQHIIHFWLYH
DVVLVWDQFHRIWULDOFRXQVHOLQWKHIROORZLQJUHVSHFWV
D )DLOXUHRIWULDOFRXQVHOWRREMHFWWRHUURQHRXV
LQVWUXFWLRQVGXULQJWKHSHQDOW\SKDVHRIWKHWULDO
E )DLOXUH WR VHFXUH D SV\FKLDWULVW RU
QHXURSV\FKRORJLVW LQ VXIILFLHQW WLPH WR SUHVHQW
HYLGHQFHRI3HWLWLRQHU¶VRUJDQLFEUDLQGDPDJH
F )DLOXUHWRREMHFWWRLPSURSHUDUJXPHQWE\WKH
SURVHFXWLRQ
7KHODFNRIHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOZDV
DYLRODWLRQRIWKH3HWLWLRQHU¶VULJKWVXQGHUWKH)LIWK
6L[WK(LJKWKDQG)RXUWHHQWK$PHQGPHQWVWRWKH
8QLWHG6WDWHV&RQVWLWXWLRQ
3HWLWLRQHU¶VDSSHOODWHFRXQVHOZDVLQHIIHFWLYH
LQ IDLOLQJ WR UDLVH WKH IROORZLQJ LVVXHV RQ GLUHFW
DSSHDO
D 7KHWULDOFRXUW¶VHUURQHRXVLQVWUXFWLRQVWRWKH
MXU\LQWKHSHQDOW\SKDVHRIWKHWULDODVVHWIRUWKLQ
WKH)LIWK&ODLPDERYH
E 7KHWULDOFRXUW¶VUHIXVDOWRLQVWUXFWWKHMXU\RQ
WKHOHVVHULQFOXGHGRIIHQVHVWRDJJUDYDWHGPXUGHU
F 7KHWULDOFRXUW¶VGLVPLVVDORIWKHMXU\IRUHPDQ
DQG VXEVWLWXWLRQ RI DQ DOWHUQDWH GXULQJ WKH
GHOLEHUDWLRQVLQWKHSHQDOW\SKDVHRIWKHWULDO
3RZHOOY&ROOLQV 1R
G 7KH XQFRQVWLWXWLRQDOLW\ RI WKH 2KLR GHDWK
SHQDOW\VFKHPH
H 7KHLQHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHODVVHW
IRUWKLQ&ODLP(OHYHQDERYH
I 7KH XQFRQVWLWXWLRQDOLW\ RI LPSRVLWLRQ RI WKH
GHDWK VHQWHQFH XSRQ D SHUVRQ ZLWK RUJDQLF EUDLQ
GDPDJHDQGRUERUGHUOLQHPHQWDOUHWDUGDWLRQ
J 3URVHFXWRULDOPLVFRQGXFW
K 7KHFXPXODWLYHHIIHFWRIDOOHUURUVDWWULDO
7KHODFNRIHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHO
ZDVDYLRODWLRQRIWKH3HWLWLRQHU¶VULJKWVXQGHUWKH
)LIWK6L[WK(LJKWKDQG)RXUWHHQWK$PHQGPHQWVWR
WKH8QLWHG6WDWHV&RQVWLWXWLRQ
7KH FXPXODWLYH HIIHFW RI WKH HUURUV
FRPSODLQHG RI DERYH ZDV D YLRODWLRQ RI WKH
3HWLWLRQHU¶VULJKWVXQGHUWKH)LIWK6L[WK(LJKWKDQG
)RXUWHHQWK $PHQGPHQWV WR WKH 8QLWHG 6WDWHV
&RQVWLWXWLRQ
-$DW
2Q -XQH WKH GLVWULFW FRXUW GHQLHG WKH KDEHDV
SHWLWLRQ,QLWVRUGHUWKHGLVWULFWFRXUWJUDQWHG3HWLWLRQHUD
FHUWLILFDWHRISUREDEOHFDXVHQRWLQJWKDW³TXHVWLRQVSUHVHQWHG
UHODWLQJWRRUJDQLFEUDLQGDPDJHDQGLQHIIHFWLYHDVVLVWDQFHRI
FRXQVHODUHDGHTXDWHWRGHVHUYHHQFRXUDJHPHQWWRSURFHHG
IXUWKHU´7KHGLVWULFWFRXUWWKHQGHQLHG3HWLWLRQHU¶VPRWLRQ
XQGHU)HGHUDO5XOHRI&LYLO3URFHGXUH H WRDOWHURUDPHQG
LWVMXGJPHQW2Q6HSWHPEHU3HWLWLRQHUILOHGDQRWLFH
RIDSSHDOWRWKLV&RXUW
-- 8 of 23 --
1R 3RZHOOY&ROOLQV
6HFWLRQ RI WKH $('3$ UHGHVLJQDWHG 86& G DV
H 6HFWLRQ RI WKH $('3$ DGGV D QHZ G ZKLFK
SURYLGHV WKDW D KDEHDV ZULW PD\ QRW LVVXH XQOHVV WKH VWDWH FRXUW
DGMXGLFDWLRQ
UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU LQYROYHG DQ
XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ HVWDEOLVKHG )HGHUDO ODZ DV
GHWHUPLQHG E\ WKH 6XSUHPH &RXUW RI WKH 8QLWHG 6WDWHV RU
UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ XQUHDVRQDEOH
GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH HYLGHQFH SUHVHQWHG LQ
WKH 6WDWH FRXUW SURFHHGLQJ
86& G
,,67$1'$5'$1'6&23(2)5(9,(:
7KH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FWRI
3XE/1R6WDW FRGLILHGDW86&
HWVHT ³$('3$´ ZDVVLJQHGLQWRODZRQ$SULO
7KH$('3$VLJQLILFDQWO\WUDQVIRUPHGWKHQDWXUHRI
IHGHUDO KDEHDV FRUSXV SURFHHGLQJV OLPLWLQJ WKH SRVVLEOH
DYHQXHV RI UHOLHI IRU FRQYLFWHG SHUVRQV +RZHYHU WKH
$('3$GRHVQRWDSSO\WRKDEHDVSHWLWLRQVSHQGLQJRQWKH
VWDWXWH¶VHIIHFWLYHGDWH6HH/LQGKY0XUSK\86
5LFNPDQY%HOO)G WK
&LU %HFDXVH3HWLWLRQHU¶VKDEHDVSHWLWLRQZDVILOHGLQ
WKH SUH$('3$ VWDQGDUG RI UHYLHZ DSSOLHV 6HH
0DSHVY&R\OH)G WK&LU 8QGHU
WKDWVWDQGDUGZHUHYLHZDGLVWULFWFRXUW¶VOHJDOFRQFOXVLRQVLQ
UHIXVLQJ WR JUDQW D ZULW RI KDEHDV FRUSXV GH QRYR EXW ZH
UHYLHZWKHGLVWULFWFRXUW¶VIDFWXDOILQGLQJVRQO\IRUFOHDUHUURU
5LFNPDQ)GDW:HPD\LVVXHDZULWRIKDEHDV
FRUSXVRQO\LIWKHVWDWHFRXUWSURFHHGLQJVZHUHIXQGDPHQWDOO\
XQIDLUDVDUHVXOWRIDYLRODWLRQRIWKH&RQVWLWXWLRQRUODZVRU
WUHDWLHVRIWKH8QLWHG6WDWHV6HH86& D (VWHOOH
Y 0F*XLUH86 7KHVWDWHFRXUW¶V
IDFWXDOILQGLQJVDUHHQWLWOHGWRDSUHVXPSWLRQRIFRUUHFWQHVV
ZKLFKLVUHEXWWDEOHRQO\E\FOHDUDQGFRQYLQFLQJHYLGHQFH
0F4XHHQY6FURJJ\)G WK&LU
7KLVSUHVXPSWLRQRQO\DSSOLHVWREDVLFSULPDU\RUKLVWRULFDO
IDFWVDQG³LPSOLFLWILQGLQJVRIIDFWORJLFDOO\GHGXFHGEHFDXVH
3RZHOOY&ROOLQV 1R
3HWLWLRQHU GHGLFDWHV DQ HQWLUH VHFWLRQ RI KLV EULHI WR WKH SUHVXPSWLRQ
RI FRUUHFWQHVV LVVXH DQG WKHUHLQ FLWHV WKH SURSHU OHJDO VWDQGDUGV IRU
UHEXWWLQJ WKH SUHVXPSWLRQ DQG WKH FLUFXPVWDQFHV LQ ZKLFK WKH SUHVXPSWLRQ
GRHV QRW DSSO\ +RZHYHU KH IDLOV WR DUWLFXODWH SDUWLFXODU SUHVXPSWLRQV
WKDW KH FRQWHVWV RQ DSSHDO
RIWKHWULDOFRXUW¶VDELOLW\WRDGMXGJHWKHZLWQHVVHV¶GHPHDQRU
DQGFUHGLELOLW\´,GDW7KHSUHVXPSWLRQGRHVQRWDSSO\
WRPL[HGTXHVWLRQVRIODZDQGIDFWRUTXHVWLRQVRIODZERWK
RIZKLFKDUHUHYLHZHGGHQRYR&ROHPDQY0LWFKHOO
)G WK&LU 6NDJJVY3DUNHU)G
WK&LU &RHY%HOO)G WK
&LU 0DSHV)GDW5LFNPDQ)GDW
$OWKRXJKRXUUHYLHZRIWKHGHQLDORIWKHKDEHDVSHWLWLRQLV
JRYHUQHGE\SUH$('3$VWDQGDUGVWKHVFRSHRIRXUUHYLHZ
LV JRYHUQHG E\ WKH SRVW$('3$ UHTXLUHPHQWV EHFDXVH
3HWLWLRQHU¶VQRWLFHRIDSSHDOIURPWKHGLVWULFWFRXUW¶VGHFLVLRQ
ZDVILOHGRQ6HSWHPEHUDIWHUWKHHIIHFWLYHGDWHRIWKH
$('3$ :H PXVW WKHUHIRUH DSSO\ WKH FHUWLILFDWH RI
DSSHDODELOLW\ ³&2$´ SURYLVLRQVLQWKHSRVW$('3$YHUVLRQ
RI86& F 6HH6ODFNY0F'DQLHO86
KROGLQJWKDWZKHQDKDEHDVSHWLWLRQHUVHHNVWR
LQLWLDWH DQ DSSHDO RI WKH GLVPLVVDO RI KLV SHWLWLRQ DIWHU
$('3$¶VHIIHFWLYHGDWHWKHULJKWWRDSSHDOLVJRYHUQHGE\
WKH &2$ UHTXLUHPHQWV IRXQG LQ F UHJDUGOHVV RI
ZKHWKHU WKH KDEHDV SHWLWLRQ ZDV ILOHG LQ WKH GLVWULFW FRXUW
EHIRUH$('3$¶VHIIHFWLYHGDWH
3XUVXDQWWRWKHSRVW$('3$ F D&2$PD\LVVXH
RQO\ XSRQ D ³VXEVWDQWLDO VKRZLQJ RI WKH GHQLDO RI D
FRQVWLWXWLRQDOULJKW´,QDGGLWLRQ F UHTXLUHVWKH&2$
WR³LQGLFDWHZKLFKVSHFLILFLVVXHRULVVXHVVDWLVI\WKHVKRZLQJ
UHTXLUHG´7KXVDSHWLWLRQHUPD\JHQHUDOO\UDLVHRQDSSHDO
RQO\WKRVHVSHFLILFLVVXHVIRUZKLFKWKHGLVWULFWFRXUWJUDQWHG
DFHUWLILFDWHRIDSSHDODELOLW\3ULRUWRWKH6XSUHPH&RXUW¶V
GHFLVLRQ LQ 6ODFN WKH GLVWULFW FRXUW LVVXHG D FHUWLILFDWH RI
SUREDEOHFDXVHDQGQRWD&2$7KHGLVWULFWFRXUWLVVXHGD
EODQNHW FHUWLILFDWH RI SUREDEOH FDXVH ZKLFK XQGHU SUH
-- 9 of 23 --
1R 3RZHOOY&ROOLQV
7KH GLVWULFW FRXUW¶V FHUWLILFDWH RI SUREDEOH FDXVH LQGLFDWHG LQ SDUW
WKDW ³WKH TXHVWLRQV UHODWLQJ WR RUJDQLF EUDLQ GDPDJH DQG LQHIIHFWLYH
DVVLVWDQFH RI FRXQVHO DUH DGHTXDWH WR GHVHUYH HQFRXUDJHPHQW WR SURFHHG
IXUWKHU )RU WKHVH UHDVRQV LW LV DSSURSULDWH WKDW D FHUWLILFDWH RI
DSSHDODELOLW\ EH LVVXHG LQ WKLV FDVH IRU WKH DSSHDO RI WKHVH SDUWLFXODU
JURXQGV´ -$ DW
$('3$ VWDQGDUGV ZRXOG KDYH HQWLWOHG 3HWLWLRQHU WR VHHN
UHYLHZRIDOOLVVXHVGHFLGHGE\WKHGLVWULFWFRXUW+RZHYHU
ZH QHHG QRW UHPDQG IRU LVVXDQFH RI D FHUWLILFDWH RI
DSSHDODELOLW\EHFDXVHRQO\DIHZLVVXHVPHULWRXUGLVFXVVLRQ
7KHGLVWULFWFRXUW¶VH[SOLFLWILQGLQJVUHJDUGLQJWKHLVVXHVRI
RUJDQLF EUDLQ GDPDJH DQG WKH HIIHFWLYHQHVV RI 3HWLWLRQHU¶V
FRXQVHO UDLVHG VXEVWDQWLDO TXHVWLRQV UHJDUGLQJ WKH SRVVLEOH
GHQLDO RI FRQVWLWXWLRQDO SURWHFWLRQV 7KRVH LVVXHV DUH
WKHUHIRUHSURSHUO\EHIRUHXVRQDSSHDO6HH6NDJJV)G
DW
,,,',6&866,21
$ ([SHUW3V\FKRORJLFDO$VVLVWDQFH
,Q KLV ILUVW DQG VHFRQG JURXQGV IRU IHGHUDO KDEHDV UHOLHI
EHIRUHWKHGLVWULFWFRXUW3HWLWLRQHUDUJXHGWKDWWKHWULDOFRXUW¶V
GHQLDORIKLVPRWLRQVIRUH[SHUWDVVLVWDQFHGHSULYHGWKHMXU\
RI UHOHYDQW LQIRUPDWLRQ FRQFHUQLQJ KLV PHQWDO KLVWRU\ DQG
SRVVLEOHRUJDQLFEUDLQGDPDJHLQYLRODWLRQRIKLVGXHSURFHVV
ULJKWV 7KH GLVWULFW FRXUW IRXQG QR GXH SURFHVV YLRODWLRQ
EHFDXVH WKH VWDWH FRXUW DGKHUHG WR WKH PDQGDWH RI $NH Y
2NODKRPD 86 E\ DSSRLQWLQJ D QHXWUDO
SV\FKRORJLFDOH[SHUW
)RUWKHUHDVRQVVHWIRUWKEHORZZHILQGFRQVWLWXWLRQDOO\
KDUPOHVVDQ\HUURUWKDWPD\KDYHRFFXUUHGDWWKHJXLOWSKDVH
RI 3HWLWLRQHU¶V WULDO KRZHYHU ZH ILQG WKDW WKH HUURU ZLWK
UHVSHFW WR WKH SHQDOW\ SKDVH RI 3HWLWLRQHU¶V WULDO PDQGDWHV
UHYHUVDODVLWYLRODWHG3HWLWLRQHU¶VGXHSURFHVVULJKWV
3RZHOOY&ROOLQV 1R
7KLV FLUFXLW DQG RWKHUV KDYH H[WHQGHG $NH¶V FRPPDQG RI H[SHUW
DVVLVWDQFH WR LQVWDQFHV EH\RQG WKRVH ZKHUH D GHIHQGDQW¶V PHQWDO FRQGLWLRQ
LV DW LVVXH DW WULDO DQG EH\RQG WKRVH RI FDSLWDO FDVHV 6HH HJ *OHQQ Y
7DWH )G WK &LU KROGLQJ WKDW WKH FDSLWDO
GHIHQGDQW ZDV SUHMXGLFHG DQG WKHUHE\ GHQLHG WKH HIIHFWLYH DVVLVWDQFH RI
FRXQVHO E\ KLV FRXQVHO¶V IDLOXUH WR VHHN H[SHUW WHVWLPRQ\ DW VHQWHQFLQJ
UHJDUGLQJ WKH GHIHQGDQW¶V RUJDQLF EUDLQ SUREOHP 6WDUU Y /RFNKDUW
)G WK &LU QRWLQJ WKDW $NH H[SODLQV WKDW ³GXH
SURFHVV UHTXLUHV DFFHVV WR DQ H[SHUW ZKR ZLOO FRQGXFW QRW MXVW DQ\ EXW DQ
DSSURSULDWH H[DPLQDWLRQ´ DQG ILQGLQJ WKDW WKH SHWLWLRQHU¶V ³H[DP ZDV
LQDSSURSULDWH EHFDXVH LW GLG QRW GHOYH LQWR WKH PLWLJDWLQJ TXHVWLRQV
HVVHQWLDO WR >WKH SHWLWLRQHU@´ 7HUU\ Y 5HHV )G WK &LU
KROGLQJ WKDW D GHIHQGDQW ZDV GHQLHG DQ RSSRUWXQLW\ WR SUHVHQW DQ
HIIHFWLYH GHIHQVH ZKHQ WKH WULDO FRXUW GHQLHG KLV UHTXHVW IRU DQ
LQGHSHQGHQW SDWKRORJLVW WR FKDOOHQJH WKH JRYHUQPHQW¶V SRVLWLRQ DV WR WKH
&RQVWLWXWLRQDO5HTXLUHPHQWV
,Q$NHY2NODKRPD86 WKH6XSUHPH
&RXUW KHOG WKDW WKH 'XH 3URFHVV &ODXVH RI WKH )RXUWHHQWK
$PHQGPHQWREOLJDWHVVWDWHVWRSURYLGHDQLQGLJHQWGHIHQGDQW
ZLWKDFFHVVWRSV\FKLDWULFH[DPLQDWLRQDQGDVVLVWDQFHZKHQ
WKHGHIHQGDQWKDVPDGHDSUHOLPLQDU\VKRZLQJWKDWKLVVDQLW\
DWWKHWLPHRIWKHRIIHQVHLVOLNHO\WREHDVLJQLILFDQWIDFWRUDW
WULDO7KH&RXUWH[SODLQHGWKDWRQFHWKLVSUHOLPLQDU\VKRZLQJ
LVPDGHWKHVWDWHVPXVW
DW D PLQLPXP DVVXUH WKH GHIHQGDQW DFFHVV WR D
FRPSHWHQWSV\FKLDWULVWZKRZLOOFRQGXFWDQDSSURSULDWH
H[DPLQDWLRQ DQG DVVLVW LQ HYDOXDWLRQ SUHSDUDWLRQ DQG
SUHVHQWDWLRQRIWKHGHIHQVH7KLVLVQRWWRVD\RIFRXUVH
WKDWWKHLQGLJHQWGHIHQGDQWKDVDFRQVWLWXWLRQDOULJKWWR
FKRRVHDSV\FKLDWULVWRIKLVSHUVRQDOOLNLQJRUWRUHFHLYH
IXQGVWRKLUHKLVRZQ2XUFRQFHUQLVWKDWWKHLQGLJHQW
GHIHQGDQWKDYHDFFHVVWRDFRPSHWHQWSV\FKLDWULVWIRUWKH
SXUSRVH ZH KDYH GLVFXVVHG DQG DV LQ WKH FDVH RI WKH
SURYLVLRQRIFRXQVHOZHOHDYHWRWKH6WDWHWKHGHFLVLRQRQ
KRZWRLPSOHPHQWWKLVULJKW
,G$NHDOVRKHOGWKDWZKHQDSSURSULDWHWKHULJKWWRH[SHUW
DVVLVWDQFH H[WHQGV WR WKH VHQWHQFLQJ SKDVH RI FDSLWDO
SURFHHGLQJV ,G DW 7KH &RXUW LQVWUXFWHG WKDW D
-- 10 of 23 --
1R 3RZHOOY&ROOLQV
FDXVH RI WKH YLFWLP¶V GHDWK 'XQQ Y 5REHUWV )G WK
&LU ILQGLQJ WKDW XQGHU $NH WKH GHQLDO RI DQ H[SHUW ZLWQHVV WR
GHWHUPLQH ZKHWKHU WKH SHWLWLRQHU¶V PHQWDO VWDWH ZDV DIIHFWHG E\ EDWWHUHG
VSRXVH V\QGURPH DW WKH WLPH RI WKH RIIHQVH SUHFOXGHG WKH SHWLWLRQHU IURP
SUHVHQWLQJ DQ HIIHFWLYH GHIHQVH /LWWOH Y $UPRQWURXW )G
WK &LU ILQGLQJ WKDW WKH UXOH RI $NH H[WHQGV WR H[SHUWV LQ
DUHDV EH\RQG WKDW RI SV\FKLDWU\ DQG WR LQVWDQFHV ZKHUH WKH GHDWK SHQDOW\
LV QRW LQYROYHG DQG KROGLQJ WKDW ³WKH GHQLDO RI D VWDWHSURYLGHG H[SHUW RQ
K\SQRVLV WR DVVLVW >WKH@ LQGLJHQW GHIHQGDQW UHQGHUHG WKH WULDO
IXQGDPHQWDOO\ XQIDLU´ WKHUHE\ UHTXLULQJ WKH FRQYLFWLRQ WR EH VHW DVLGH
GHIHQGDQW¶VLQWHUHVWLQDFFHVVWRH[SHUWDVVLVWDQFHRXWZHLJKV
DVWDWH¶VHFRQRPLFLQWHUHVWVLQDYRLGLQJWKHFRVWRIDQH[SHUW
ZKHQWKHGHIHQGDQW¶V³PHQWDOFRQGLWLRQ´LVVHULRXVO\DWVWDNH
LQDFDSLWDOFDVH,GDW
6HYHUDO FLUFXLWV KDYH LQWHUSUHWHG $NH WR PHDQ WKDW GXH
SURFHVVLVQRWVDWLVILHGXQOHVVWKHGHIHQGDQWLVSURYLGHGDQ
LQGHSHQGHQW SV\FKLDWULVW WR DLG LQ KLV GHIHQVH ² LH WKH
DSSRLQWPHQW RI D QHXWUDO FRXUW SV\FKLDWULVW VXFK DV LQ WKH
PDWWHUDWKDQGGRHVQRWVDWLVI\GXHSURFHVV6HHHJ6WDUU
Y$//RFNKDUW)G WK&LU ³>7@KH
WULDOFRXUW¶VILQGLQJWKDW>WKHGHIHQGDQW¶V@GXHSURFHVV
ULJKWWRH[SHUWDVVLVWDQFHZDVVDWLVILHGE\WKHFRXUWRUGHUHG
H[DPLQDWLRQDQGE\WKHGHIHQVH¶VDELOLW\WRVXESRHQDWKHVWDWH
H[DPLQHUV>ZDV@HUURQHRXV>EHFDXVH@WKHDELOLW\WRVXESRHQD
DVWDWHH[DPLQHUDQGWRTXHVWLRQWKDWSHUVRQRQWKHVWDQGGRHV
QRWDPRXQWWRWKHH[SHUWDVVLVWDQFHUHTXLUHGE\$NH´ 6PLWK
Y 0F&RUPLFN )G WK &LU
³>8@QGHU $NH HYDOXDWLRQ E\ D μQHXWUDO¶ FRXUW SV\FKLDWULVW
GRHVQRWVDWLVI\GXHSURFHVV>7KHGHIHQGDQW@ZDVHQWLWOHG
WRKLVRZQFRPSHWHQWSV\FKLDWULFH[SHUW´ 8QLWHG6WDWHVY
6ORDQ )G WK &LU ILQGLQJ WKDW D
VWDWH¶V GXW\ XQGHU $NH ³FDQQRW EH VDWLVILHG ZLWK WKH
DSSRLQWPHQWRIDQH[SHUWZKRXOWLPDWHO\WHVWLILHVFRQWUDU\WR
WKHGHIHQVHRQWKHLVVXHRIFRPSHWHQFH´ 8QLWHG6WDWHVY
%\HUV)G '&&LU KROGLQJWKDWWKH
GHIHQGDQW ZDV GHQLHG SV\FKLDWULF DVVLVWDQFH VXIILFLHQW WR
SUHSDUH DQ DGHTXDWH GHIHQVH ZKHUH KH ZDV RQO\ DOORZHG
DFFHVVWRSV\FKLDWULVWVIRUWKHJRYHUQPHQW
3RZHOOY&ROOLQV 1R
7KH)LIWK&LUFXLWKRZHYHUKDVWDNHQDFRQWUDU\SRVLWLRQ
KROGLQJ WKDW SURYLGLQJ ³DQ LQGLJHQW GHIHQGDQW ZLWK WKH
DVVLVWDQFHRIDFRXUWDSSRLQWHGSV\FKLDWULVWZKRVHRSLQLRQ
DQG WHVWLPRQ\ LV DYDLODEOH WR ERWK VLGHV´ VDWLVILHV D
GHIHQGDQW¶VGXHSURFHVVULJKWV6HH*UDQYLHOY/\QDXJK
)G WK&LU $OWKRXJKWKH6XSUHPH&RXUW
GHQLHG *UDQYLHO¶V SHWLWLRQ IRU D ZULW RI FHUWLRUDUL -XVWLFH
0DUVKDOOMRLQHGE\-XVWLFH%UHQQDQZURWHDVKDUSGLVVHQWWR
WKHGHQLDORIWKHSHWLWLRQ6HH*UDQYLHOY7H[DV86
0DUVKDOO-GLVVHQWLQJ -XVWLFH0DUVKDOORSLQHG
WKDW³>E@HFDXVHWKH)LIWK&LUFXLW¶VPLVLQWHUSUHWDWLRQRI$NH
VXEVWDQWLDOO\XQGHUPLQHVDQLQGLJHQW GHIHQGDQW¶VDELOLW\WR
SUHVHQW DQ HIIHFWLYH GHIHQVH , ZRXOG JUDQW WKH SHWLWLRQ WR
UHDIILUP RXU KROGLQJ LQ $NH´ ,G DW 7KH -XVWLFH
UHDVRQHGDVIROORZV
$NHZDVFRQFHUQHGQRWZLWKHVWDEOLVKLQJDSURFHGXUH
ZKHUHE\DQLQGHSHQGHQWH[DPLQHUFRXOGGHWHUPLQHWKH
YDOLGLW\RIDGHIHQGDQW¶VLQVDQLW\GHIHQVHDQGSUHVHQWKLV
ILQGLQJVWRERWKSDUWLHVDQGWRWKHFRXUW5DWKHU$NHZDV
GLUHFWHGDWSURYLGLQJDGHIHQGDQWZLWKWKHWRROVQHFHVVDU\
WRSUHVHQWDQHIIHFWLYHGHIHQVHZLWKLQWKHFRQWH[WRIRXU
DGYHUVDULDO V\VWHP LQ ZKLFK HDFK SDUW\ PDUVKDOV
HYLGHQFHIDYRUDEOHWRLWVVLGHDQGDJJUHVVLYHO\FKDOOHQJHV
WKH HYLGHQFH SUHVHQWHG E\ WKH RWKHU VLGH ,Q WKDW
DGYHUVDULDO V\VWHP ³WKH SV\FKLDWULVWV IRU HDFK SDUW\
HQDEOH WKH >FRXUW RU@ MXU\ WR PDNH LWV PRVW DFFXUDWH
GHWHUPLQDWLRQ RI WKH WUXWK RQ WKH LVVXH EHIRUH WKHP´
> 86@ DW 7KXV ZH UHFRJQL]HG LQ $NH WKDW D
GHIHQVHSV\FKLDWULVWLVQHFHVVDU\QRWRQO\WRH[DPLQHD
GHIHQGDQWDQGWRSUHVHQWILQGLQJVWRWKHMXGJHRUMXU\RQ
EHKDOIRIWKHGHIHQGDQWEXWDOVRWR³DVVLVWLQSUHSDULQJ
WKHFURVVH[DPLQDWLRQRID6WDWH¶VSV\FKLDWULFZLWQHVVHV´
LG DW DQG LQ GHWHUPLQLQJ ³KRZ WR LQWHUSUHW WKHLU
DQVZHUV´ LG DW -XVW DV DQ LQGLJHQW GHIHQGDQW¶V
ULJKWV WR OHJDO DVVLVWDQFH ZRXOG QRW EH VDWLVILHG E\ D
6WDWH¶VSURYLVLRQRIDODZ\HUZKRDIWHUFRQVXOWLQJZLWK
WKHGHIHQGDQWDQGH[DPLQLQJWKHIDFWVRIWKHFDVHDQGWKH
DSSOLFDEOHODZSUHVHQWHGHYHU\WKLQJKHNQHZDERXWWKH
GHIHQGDQW¶VJXLOWWRWKHGHIHQGDQWWKHSURVHFXWLRQDQG
-- 11 of 23 --
1R 3RZHOOY&ROOLQV
WKH FRXUW VR KLV ULJKW WR SV\FKLDWULF DVVLVWDQFH LV QRW
VDWLVILHGE\SURYLVLRQRIDSV\FKLDWULVWZKRPXVWUHSRUW
WRERWKSDUWLHVDQGWKHFRXUW
,GDW
7RGD\ZHMRLQZLWKWKRVHFLUFXLWVWKDWKDYHKHOGWKDWDQ
LQGLJHQW FULPLQDO GHIHQGDQW¶V FRQVWLWXWLRQDO ULJKW WR
SV\FKLDWULFDVVLVWDQFHLQSUHSDULQJDQLQVDQLW\GHIHQVHLVQRW
VDWLVILHGE\FRXUWDSSRLQWPHQWRID³QHXWUDO´SV\FKLDWULVW²
LHRQHZKRVHUHSRUWLVDYDLODEOHWRERWKWKHGHIHQVHDQGWKH
SURVHFXWLRQ6HH6WDUU)GDW6PLWK)GDW
6ORDQ)GDW%\HUV)GDW$VD
UHVXOWLQWKHPDWWHUEHIRUHXVVRORQJDV3HWLWLRQHUPDGHWKH
UHTXLVLWHSUHOLPLQDU\VKRZLQJWKDWKLVVDQLW\DWWKHWLPHRIWKH
RIIHQVHZDVWREHD³VLJQLILFDQWIDFWRUDWWULDO´WKHWULDOFRXUW
HUUHGLQIDLOLQJWRJUDQW3HWLWLRQHU¶VPRWLRQIRUDQLQGHSHQGHQW
SV\FKLDWULVW6HH$NH86DW
6LQFH$NHWKH6XSUHPH&RXUWKDVUXOHGWKDWDQLQGLJHQW
FULPLQDOGHIHQGDQWVHHNLQJSV\FKLDWULFDVVLVWDQFHPXVWEDVH
KLVSUHOLPLQDU\VKRZLQJRQPRUHWKDQDJHQHUDOVWDWHPHQWRI
QHHGUDWKHUKHPXVWVXSSRUWKLVUHTXHVWZLWKVSHFLILFIDFWV
6HH&DOGZHOOY0LVVLVVLSSL86Q
+HUHRQHPRQWKSULRUWRWULDO3HWLWLRQHU¶VDWWRUQH\VSURGXFHG
3HWLWLRQHU¶V MXYHQLOH FRXUW UHFRUGV DQG SV\FKRORJLFDO
HYDOXDWLRQVDOOHJLQJWKDWWKHVHGRFXPHQWVUHYHDOHGPHQWDO
GHILFLHQFLHVWKDWVKRXOGOHDGWRWKHDSSRLQWPHQWRIDQH[SHUW
WRDVVLVWWKHGHIHQVHLQWKHSUHVHQWDWLRQRILWVFDVH2QHRIWKH
UHSRUWVSUHSDUHGLQ-XQHRIZKHQ3HWLWLRQHUZDVRQO\
HOHYHQ \HDUV ROG QRWHG WKDW KH ZDV WKHQ QRQYHUEDO DQG
GHIHQVLYHDOWKRXJKKHGLGQRW³GHPRQVWUDWHDQ\VLJQVRID
GLVWXUEHGWKRXJKWSURFHVVRUEL]DUUHWKRXJKWSDWWHUQ´7KH
UHSRUWIXUWKHUVWDWHGWKDW3HWLWLRQHU¶VIXOOVFDOH,4VFRUHZDV
RQO\SODFLQJKLPLQWKH³PLOGPHQWDOO\UHWDUGHGUDQJHRI
LQWHOOHFWXDODELOLW\´ -$DW 7KHUHSRUWFRQFOXGHG
³QRWRQO\GRHV>3HWLWLRQHU@SHUFHLYHSK\VLFDODJJUHVVLRQDVQRW
EHLQJZURQJEXWWHQGVDOVRWRYDOXHDJJUHVVLRQDQGDFFHSWV
LWDVDIDFWRIOLIH´ -$DW
3RZHOOY&ROOLQV 1R
7KH UHPDLQLQJ WZR UHSRUWV UHFHLYHG E\ GHIHQVH FRXQVHO
LQYROYHGH[DPLQDWLRQVRI3HWLWLRQHUZKHQKHZDVIRXUWHHQ
\HDUV ROG 7KRVH HYDOXDWLRQV FRQGXFWHG WZR GD\V DSDUW
UHYHDOHGWKDW3HWLWLRQHUWKHQKDGDIXOOVFDOH,4RI7KH
UHSRUWV DOVR LQGLFDWHG WKDW 3HWLWLRQHU GLG QRW GR ZHOO ³LQ
UHFRJQL]LQJ FDXVH DQG HIIHFW UHODWLRQVKLSV LQ VRFLDO
VLWXDWLRQV´ -$DW +RZHYHUWKHUHSRUWVIXUWKHUQRWHG
WKDW WKH H[DPLQHUV FRXOG QRW XQFRYHU DQ\ HYLGHQFH RI
SV\FKRWLF SURFHVV RU RUJDQLF G\VIXQFWLRQ 3HWLWLRQHU ZDV
GHVFULEHGLQVXPPDU\DV³DUDWKHUORZIXQFWLRQLQJ\RXQJVWHU
ZLWKDFRQGXFWGLVRUGHURID>Q@XQVRFLDOL]HGQRQDJJUHVVLYH
UHDFWLRQ´ -$DW
/LNHWKHGLVWULFWFRXUWZHEHOLHYHWKDW3HWLWLRQHUSURYLGHG
WKHWULDOFRXUWZLWKWKHQHFHVVDU\SDUWLFXODUL]HGIDFWVVXIILFLHQW
WRWULJJHU$NH¶VUHTXLUHPHQWRISV\FKLDWULFDVVLVWDQFH8QOLNH
LQ&DOGZHOOZKHUHWKHGHIHQGDQWSUHVHQWHGOLWWOHPRUHWKDQ
³XQGHYHORSHGDVVHUWLRQV´WKDWWKHUHTXHVWHGDVVLVWDQFHZRXOG
DLG LQ KLV GHIHQVH 3HWLWLRQHU SURYLGHG WKH WULDO FRXUW ZLWK
VSHFLILF IDFWV UHOHYDQW WR KLV GHIHQVH DW ERWK WKH JXLOW DQG
SHQDOW\SKDVHVRIKLVWULDO$FFRUGLQJO\WKHWULDOFRXUWHUUHG
LQ GHQ\LQJ 3HWLWLRQHU¶V PRWLRQ IRU LQGHSHQGHQW SV\FKLDWULF
DVVLVWDQFH+RZHYHUDVH[SODLQHGEHORZZHILQGWKHHUURULQ
UHODWLRQWRWKHJXLOWSKDVHRI3HWLWLRQHU¶VWULDOFRQVWLWXWLRQDOO\
KDUPOHVV 7KH HUURU LQ UHODWLRQ WR WKH SHQDOW\ SKDVH RI
3HWLWLRQHU¶V FDVH SUHVHQWV D GLIIHUHQW VFHQDULR UHTXLULQJ
UHYHUVDO
*XLOW3KDVHRI3HWLWLRQHU¶V7ULDO
$NH JXDUDQWHHV DQ LQGLJHQW FULPLQDO GHIHQGDQW WKH EDVLF
WRRORIDFRXUWDSSRLQWHGH[SHUWWR³FRQGXFWDQDSSURSULDWH
H[DPLQDWLRQ DQG DVVLVW LQ HYDOXDWLRQ SUHSDUDWLRQ DQG
SUHVHQWDWLRQRIWKHGHIHQVH´6HH$NH86DW+HUH
ZKLOHZHILQGWKDWWKHGLVWULFWFRXUWHUUHGLQIDLOLQJWRDSSRLQW
DQLQGHSHQGHQWSV\FKLDWULVWWRJXDUDQWHH3HWLWLRQHU¶VULJKWVWR
DQDSSURSULDWHH[DPLQDWLRQDQGWRDLGLQKLVGHIHQVHEDVHGRQ
WKHUHFRUGEHIRUHXVWKHWULDOFRXUW¶VHUURUZDVKDUPOHVV
7KH6XSUHPH&RXUWKDVKHOGWKDWFHUWDLQHUURUVZKLFKDUH
VRHOHPHQWDOWKDWWKHLUH[LVWHQFHDEURJDWHVWKHEDVLFVWUXFWXUH
-- 12 of 23 --
1R 3RZHOOY&ROOLQV
RIDFRQVWLWXWLRQDOWULDOVXFKDVWKHGHSULYDWLRQRIWKHULJKWWR
FRXQVHOFDQQHYHUEHVXEMHFWWRKDUPOHVVHUURUDQDO\VLVVHH
$UL]RQDY)XOPLQDQWH86
KRZHYHUWKH&RXUWKDVDOVRKHOGWKDWPHUH³WULDOHUURU´VXFK
DVZKHQFRXQVHOKDVSHUIRUPHGGHILFLHQWO\PD\EHVXEMHFWWR
DKDUPOHVVHUURUUHYLHZ6HHLG8QLWHG6WDWHVY0RUULVRQ
86 UHFRJQL]LQJWKDW³FHUWDLQYLRODWLRQV
RIWKHULJKWWRFRXQVHOPD\EHGLVUHJDUGHGDVKDUPOHVVHUURU´
,Q WKLV FDVH ZH ILQG WKDW WKH GHQLDO RI H[SHUW SV\FKLDWULF
DVVLVWDQFHDVJXDUDQWHHGE\$NHWREHPRUHDNLQWRWULDOHUURU
VXFKDVWKDWZKHUHFRXQVHOKDVSHUIRUPHGGHILFLHQWO\DQGLV
WKXVVXEMHFWWRKDUPOHVVHUURUUHYLHZ6HH6WDUU)GDW
8QOLNHWKHFDVHZKHUHDGHIHQGDQWKDVEHHQGHQLHGWKH
ULJKWWRFRXQVHOFRPSOHWHO\WKHUHE\FRQVWLWXWLQJDVWUXFWXUDO
GHIHFWWKHGHQLDORIDQ$NHH[SHUWPD\GHSULYHWKHGHIHQGDQW
RIDEDVLFWRROQHFHVVDU\WRKLVGHIHQVHEXWWKDWGHQLDOPD\
QRWDOZD\VUHVXOWLQSUHMXGLFHWRWKHGHIHQGDQW6HHLG
:LWKWKDWVDLGWKH6XSUHPH&RXUWKDVLQVWUXFWHGXVWKDW
WULDOHUURUVLQKDEHDVSURFHHGLQJVDUHVXEMHFWWRWKHKDUPOHVV
HUURUVWDQGDUGHQXQFLDWHGLQ.RWWHDNRVY8QLWHG6WDWHV
86 DQG UHFRJQL]HG LQ %UHFKW Y
$EUDKDPVRQ86 DVZHOODVLQ2¶1HDO
Y0F$QLQFK86 6SHFLILFDOO\WKH&RXUW
KDVLQVWUXFWHGWKDW³WULDOHUURUVLQFOXGLQJHUURUVLQUHVSHFWWR
ZKLFKWKH&RQVWLWXWLRQUHTXLUHVVWDWHFRXUWVWRDSSO\DVWULFWHU
VWDQGDUGRIμKDUPOHVVHUURU¶UHYLHZZKHQWKH\UHYLHZD
FRQYLFWLRQGLUHFWO\>@´DUHWREHUHYLHZHGDVWR³ZKHWKHUWKH
HUURU KDG D VXEVWDQWLDO DQG LQMXULRXV HIIHFW RQ WKH MXU\¶V
YHUGLFW>@´VXFKWKDWLIWKHUHYLHZLQJFRXUW³LVLQJUDYHGRXEW
DVWRWKHKDUPOHVVQHVVRIDQHUURUWKHKDEHDVSHWLWLRQHUPXVW
ZLQ´ &DOLIRUQLD Y 5R\ 86 LQWHUQDO
TXRWDWLRQPDUNVDQGFLWDWLRQVRPLWWHG +HUHXSRQWKRURXJK
UHYLHZRIWKHUHFRUGEHIRUHXVZHDUHQRWOHIWLQJUDYHGRXEW
DVWRWKHKDUPOHVVQHVVRIWKHWULDOFRXUW¶VIDLOXUHWRSURYLGH
3HWLWLRQHUZLWKDQLQGHSHQGHQWFRXUWDSSRLQWHGSV\FKLDWULVW
EHFDXVH ZH GR QRW EHOLHYH WKDW WKH FRXUW¶V HUURU KDG DQ
LQMXULRXVHIIHFWRQWKHMXU\¶VYHUGLFW
3RZHOOY&ROOLQV 1R
3HWLWLRQHU¶V FRQYLFWLRQV DW LVVXH ZHUH EDVHG XSRQ WKH
FKDUJHV RI DJJUDYDWHG PXUGHU GXULQJ D NLGQDSSLQJ DQG
DJJUDYDWHG PXUGHU ZLWK D UDSH VSHFLILFDWLRQ 8QGHU 2KLR
ODZ³>D@JJUDYDWHGPXUGHUUHTXLUHVSXUSRVHIXOO\FDXVLQJWKH
GHDWKRIDQRWKHUZKLOHFRPPLWWLQJRUDWWHPSWLQJWRFRPPLW
RQHRIQLQHVSHFLILHGIHORQLHV´6KRHPDNHUY0RUJDQ1R
:/ DW 2KLR 'HF
%DVHG RQ WKH UHFRUG EHIRUH XV WKHUH LV QR TXHVWLRQ WKDW
3HWLWLRQHUNLGQDSSHG7ULQDIRUWKHSXUSRVHRIUDSLQJKHURU
WKDWKHSXUSRVHIXOO\WKUHZKHURXWRIWKHZLQGRZ²WKHDFW
ZKLFK XOWLPDWHO\ FDXVHG KHU GHDWK 6SHFLILFDOO\ WKH IDFWV
VKRZWKDWXSRQOHDYLQJWKHEXLOGLQJMXVWDIWHUWKURZLQJ7ULQD
RXWRIWKHZLQGRZ3HWLWLRQHUPXPEOHGWR6KLUOH\/HH³,GLG
ZKDW,LQWHQGHGWRGRWRWKDWELWFK>@´WKHUHE\LQGLFDWLQJWKDW
KH LQWHQWLRQDOO\ LQIOLFWHG 7ULQD ZLWK WKLV XOWLPDWHO\ IDWDO
LQMXU\6HH6WDWHY3RZHOO1(GDW,QDGGLWLRQ
DIWHUEHLQJDSSUHKHQGHG3HWLWLRQHUDGPLWWHGWRSROLFHWKDWKH
KDGWDNHQ7ULQDEHFDXVHKHLQWHQGHGWR³IXFN´KHUWKHUHE\
DGPLWWLQJWRWKHSUHGLFDWHIHORQLHVRINLGQDSSLQJDQGUDSH
6HH LG 8QGHU WKHVH IDFWV ZH YLHZ WKH HUURU DV KDUPOHVV
(YHQLIDQLQGHSHQGHQW SV\FKLDWULVWKDGEHHQDSSRLQWHGLW
ZRXOGQRWKDYHFKDQJHGWKHIDFWWKDWE\KLVRZQDGPLVVLRQ
3HWLWLRQHUNLGQDSSHG7ULQDLQWHQGLQJWRUDSH KHUDQGWKHQ
SXUSRVHIXOO\ WKUHZ 7ULQD WR KHU XOWLPDWH GHDWK LQ RUGHU WR
SURWHFWKLPVHOI²KH³KDG´WRWKURZKHURXWRIWKHZLQGRZ
EHFDXVHKHKHDUGLQGLYLGXDOVUHVSRQGLQJWR7ULQD¶VFULHVIRU
KHOS3HWLWLRQHU¶VRZQDGPLVVLRQVSURYLGHWKHEDVLVIRUDMXU\
WRILQGWKDWKHZDVFDSDEOHRISHUIRUPLQJSXUSRVHIXODFWVDQG
WKDWKHLQIDFWFRPPLWWHGWKHDFWVZKLFKOHGWR7ULQD¶VGHDWK
6HH6WDUU)GDW KROGLQJWKDWWKHWULDOFRXUW¶V
IDLOXUH WR DSSRLQW DQ LQGHSHQGHQW $NH SV\FKLDWULVW ZDV
KDUPOHVVHUURUZKHUHWKHIDFWVLQGLFDWHGWKDWWKHGHIHQGDQW
KDGLQWHQWLRQDOO\LQIOLFWHGWKHLQMXU\ZKLFKOHGWRWKHYLFWLP¶V
GHDWK LQ FRQQHFWLRQ ZLWK WKH GHIHQGDQW¶V FRQYLFWLRQ IRU
FDSLWDO RU IHORQ\ PXUGHU HYHQ ZKHQ XVLQJ WKH KLJKHU
³KDUPOHVVEH\RQGDUHDVRQDEOHGRXEW´VWDQGDUG 7KLVZDV
QRWDFDVHZKHUHWKHSURVHFXWLRQKDGWRSURYHSUHPHGLWDWLRQ
DQGGHOLEHUDWLRQLQRUGHUWRSURYHWKDWWKHGHIHQGDQWLQWHQGHG
WRPXUGHUKLVYLFWLP5DWKHUXQGHU2KLRODZWKHSURVHFXWLRQ
KDGWRSURYHRQO\WKDW3HWLWLRQHUSXUSRVHIXOO\FDXVHG7ULQD¶V
-- 13 of 23 --
1R 3RZHOOY&ROOLQV
GHDWKDQG3HWLWLRQHUKLPVHOIDGPLWWHGWKDWKHGLGVREHFDXVH
KH³KDG´WR
:HDUHQRWSHUVXDGHGRWKHUZLVHE\WKHWHVWLPRQ\RI'U
-DPHV 7DQOH\ D SV\FKRORJLVW ZKRVH VHUYLFHV 3HWLWLRQHU
HYHQWXDOO\REWDLQHGIROORZLQJKLVFRQYLFWLRQ'U7DQOH\GLG
QRWH[DPLQH3HWLWLRQHUXQWLO0DUFKLWZDVWKHUHIRUH
QHFHVVDU\ IRU KLP WR WHVWLI\ VHYHUDO \HDUV DIWHU WKH WULDO
SURFHHGLQJFRQFHUQLQJ3HWLWLRQHU¶VPHQWDOFRQGLWLRQDWWKH
WLPHRIWKHFULPH'U7DQOH\WHVWLILHGWKDWLQKLVRSLQLRQ
3HWLWLRQHU¶VDOOHJHGRUJDQLFEUDLQGDPDJHWRJHWKHUZLWKKLV
ORZ,4DQGRWKHUIDFWRUVFRPSURPLVHG3HWLWLRQHU¶VDELOLW\WR
WKLQN FRJQLWLYHO\ VXFK WKDW 3HWLWLRQHU KDG VLJQLILFDQW
GLIILFXOW\LQFRQIRUPLQJKLVDFWLRQVWRWKHUHTXLUHPHQWVRIWKH
ODZDWWKHWLPHRIWKHRIIHQVH$OWKRXJKZHUHFRJQL]HWKLV
WHVWLPRQ\ZHGRVRZKLOHDOVRUHFRJQL]LQJWKHWHVWLPRQ\RI
'U6FKPLGWJRHVVOLQJDVZHOODV3HWLWLRQHU¶VRZQDFWLRQVDQG
VWDWHPHQWVWRWKHFRQWUDU\0RUHRYHU'U7DQOH\¶VWHVWLPRQ\
WKDW3HWLWLRQHU³KDGVLJQLILFDQWGLIILFXOW\FRQIRUPLQJKLV
FRQGXFWWRWKHUHTXLUHPHQWVRIWKHODZ´ -$DW IDOOV
VKRUWRI2KLR¶VVWDQGDUGIRULQVDQLW\DSSOLFDEOHDWWKHWLPHRI
7ULQD¶V PXUGHU QDPHO\ ZKHWKHU 3HWLWLRQHU ODFNHG WKH
FDSDFLW\WRFRQIRUPKLVFRQGXFWWRWKHUHTXLUHPHQWVRIWKH
ODZ6HH6WDWHY6WDWHQ1(G 2KLR
SURYLGLQJ LQ UHOHYDQW SDUW 2KLR¶V SUH GHILQLWLRQ RI
LQVDQLW\DVEHLQJWKDWZKHUHRQHDFFXVHGRIFULPLQDOFRQGXFW
³GRHVQRWKDYHWKHFDSDFLW\WRFRQIRUPKLVFRQGXFWWRWKH
UHTXLUHPHQWVRIWKHODZ´ 6WDWHY/XII1(G
2KLR &W $SS KROGLQJ WKDW WKH DSSOLFDWLRQ RI
2KLR¶VDPHQGPHQWVUHJDUGLQJLQVDQLW\WRDGHIHQGDQW¶V
PHQWDOVWDWHEHIRUHYLRODWHGWKHH[SRVWIDFWRFODXVHVRI
WKH8QLWHG6WDWHVDQG2KLR&RQVWLWXWLRQV ,QRWKHUZRUGV
'U 7DQOH\¶V DIWHUWKHIDFW SRVWFRQYLFWLRQ WHVWLPRQ\ GRHV
QRWKLQJWRFKDQJHWKHKDUPOHVVQHVVRIWKHWULDOFRXUW¶VHUURU
EHFDXVH WKH IDFW WKDW RQH KDV GLIILFXOW\ FRQIRUPLQJ KLV
FRQGXFWWRWKHUHTXLUHPHQWVRIWKHODZCLVQRWHQRXJKWRSURYH
LQVDQLW\RQHPXVWGHPRQVWUDWHWKHODFNRIFDSDFLW\WRGRVR
7KXVXSRQRXUUHYLHZRIDOORIWKHHYLGHQFHWKURXJKWKH
SULVPRIDKDUPOHVVHUURUVWDQGDUGZHDUHQRWOHIWLQ³JUDYH
3RZHOOY&ROOLQV 1R
GRXEW´DVWRWKHKDUPOHVVQHVVRIWKHWULDOFRXUW¶VHUURUEHFDXVH
ZHGRQRWEHOLHYHWKDWWKHIDLOXUHWRDSSRLQWDQLQGHSHQGHQW
SV\FKLDWULVWKDGDVXEVWDQWLDODQGLQMXULRXVHIIHFWRQWKHMXU\¶V
YHUGLFWZKHQFRQVLGHULQJWKHUHFRUGDVDZKROH:HWKHUHIRUH
KROG WKDW 3HWLWLRQHU¶V FODLP RQ WKLV LVVXH LQ UHODWLRQ WR WKH
JXLOWSKDVHRIKLVWULDOPXVWIDLO+RZHYHUWKHVDPHFDQQRW
EH VDLG ZLWK UHVSHFW WR HUURU LQ UHODWLRQ WR WKH SHQDOW\ RU
VHQWHQFLQJSKDVHRI3HWLWLRQHU¶VWULDO$VIRXQGE\WKH(LJKWK
&LUFXLW³WKHLVVXHRIPLWLJDWLRQLVGLIIHUHQWIURPWKDWRI
JXLOW´6HH6WDUU)GDW
3HQDOW\3KDVHRI3HWLWLRQHU¶V7ULDO
8QGHU2KLR¶VGHDWKSHQDOW\VWDWXWHWKHWULDOMXU\ZDV
UHTXLUHGWRZHLJKDJDLQVWWKHDJJUDYDWLQJFLUFXPVWDQFHV
RIWKHFULPH³WKHKLVWRU\FKDUDFWHUDQGEDFNJURXQGRI
WKH RIIHQGHU´ DPRQJ RWKHU WKLQJV 2KLR 5HY &RGH
% 7KHMXU\ZDVDOVRUHTXLUHGWRFRQVLGHU
ZKHWKHU ³EHFDXVH RI D PHQWDO GLVHDVH RU GHIHFW´ WKH
RIIHQGHU³ODFNHGVXEVWDQWLDOFDSDFLW\WRDSSUHFLDWHWKH
FULPLQDOLW\RIKLVFRQGXFWRUWRFRQIRUPKLVFRQGXFWWR
WKH UHTXLUHPHQWV RI WKH ODZ´ 2KLR 5HY &RGH
% $QGWKHMXU\ZDVUHTXLUHGWRFRQVLGHU
³>D@Q\ RWKHU IDFWRUV WKDW DUH UHOHYDQW WR WKH LVVXH RI
ZKHWKHUWKHRIIHQGHUVKRXOGEHSXWWRGHDWK´2KLR5HY
&RGH %
*OHQQ Y 7DWH )G WK &LU
+RZHYHUDVWKLV&RXUWKDVUHFRJQL]HGD³MXU\FRXOGFRQVLGHU
QRQHRIWKHVHPDWWHUVRIFRXUVHLIWKHUHOHYDQWIDFWVZHUHQRW
SODFHGEHIRUHLW´,GDW
7KHWULDOFRXUW¶VGHQLDORIDQ$NHH[SHUWLQWKLVFDVHFDQQRW
EH FRQVLGHUHG KDUPOHVV HUURU LQDVPXFK DV E\ KHU RZQ
DGPLVVLRQ'U6FKPLGWJRHVVOLQJZDVQRWHTXLSSHGWRFRQGXFW
WKHDSSURSULDWHH[DPLQDWLRQUHTXLUHGIRUKHUWRVHWIRUWKDOORI
WKHIDFWVRULQIRUPDWLRQWKHMXU\VKRXOGKDYHFRQVLGHUHGDW
PLWLJDWLRQ'U6FKPLGWJRHVVOLQJEHJDQE\DFNQRZOHGJLQJ
WKDW³PLWLJDWLRQLVDPXFKEURDGHUTXHVWLRQWKDQDGGUHVVHGWR
GDWHDQGLIWKH&RXUWZDQWVDIXOOXQGHUVWDQGLQJ,IHHOLW
LVLPSRUWDQWWRXVHWKHWHFKQLTXHVWRDQVZHUWKRVHTXHVWLRQV´
-- 14 of 23 --
1R 3RZHOOY&ROOLQV
-$DW 6KHWKHQZHQWRQWRH[SODLQWKDWQHLWKHUVKH
QRUDQ\RWKHUVWDIIPHPEHUDWWKHFRXUW¶VSV\FKLDWULFFOLQLF
ZHUHTXDOLILHGWRFRQGXFWWKHW\SHRIWHVWLQJDQGHYDOXDWLRQ
WKDWZDVUHTXLUHGWRGLDJQRVH3HWLWLRQHUZLWKRUJDQLFEUDLQ
GDPDJHIRUWKHSXUSRVHRIVKRZLQJWKHHIIHFWRIWKDWIDFWRUDW
PLWLJDWLRQ'U6FKPLGWJRHVVOLQJLQGLFDWHGWKDWVXFKWHVWLQJ
ZRXOGUHTXLUHDUHIHUUDOWRDFRPSUHKHQVLYHPHGLFDOIDFLOLW\
DQGVSHFLDOLVWVLQWKHDSSURSULDWHILHOGV²SUHFLVHO\WKHW\SHRI
DVVLVWDQFH3HWLWLRQHUVRXJKWEXWZDVGHQLHG
$FFRUGLQJO\XQGHUWKHVHIDFWVXQOLNHZLWKWKHJXLOWSKDVH
RI 3HWLWLRQHU¶V WULDO WKH WHVWLPRQ\ RI DQ LQGHSHQGHQW
SV\FKLDWULVW²SDUWLFXODUO\RQHZKRZDVTXDOLILHGWRFRQGXFW
WKHDSSURSULDWHWHVWLQJRIZKLFK'U6FKPLGWJRHVVOLQJVSRNH
²PD\KDYHSURYLGHGIDFWVDQGLQIRUPDWLRQIRUWKHMXU\WR
FRQVLGHU DW PLWLJDWLRQ ZKLFK PD\ KDYH OHG WR D GLIIHUHQW
UHFRPPHQGDWLRQ E\ WKH MXU\ DW VHQWHQFLQJ :H WKHUHIRUH
EHOLHYHWKDWWKHODFNRIWKHH[SHUWDVVLVWDQFHZKLFK3HWLWLRQHU
VRXJKW DQG ZKLFK KH ZDV HQWLWOHG XQGHU $NH ³KDG D
VXEVWDQWLDODQGLQMXULRXVHIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKH
MXU\¶V´GHFLVLRQDWVHQWHQFLQJVHH%UHFKW86DW
VXFKWKDWZHDUHOHIWLQ³JUDYHGRXEW´DVWRWKHKDUPOHVVQHVV
RI WKLV HUURU WKHUHE\ UHTXLULQJ WKDW UHOLHI EH JUDQWHG WR
3HWLWLRQHURQWKLVLVVXH6HH2¶1HDO86DW
:HDGGWKDWHYHQLIZHZHUHWRKDYHIROORZHGWKH)LIWK
&LUFXLW¶VUDWLRQDOHWKDWDQHXWUDOSV\FKLDWULVWLVVXIILFLHQWWR
PHHW$NH¶VFRPPDQG3HWLWLRQHUZRXOGVWLOOSUHYDLORQWKLV
LVVXHLQFRQQHFWLRQZLWKWKHSHQDOW\SKDVHRIKLVWULDO'U
6FKPLGWJRHVVOLQJ WHVWLILHG WKDW VKH ZDV QRW TXDOLILHG WR
FRQGXFWWKHW\SHRIH[DPLQDWLRQQHFHVVDU\IRUPLWLJDWLRQ$V
DUHVXOW3HWLWLRQHUZDVGHQLHGWKHYHU\W\SHRIDVVLVWDQFHIRU
ZKLFK$NHSURYLGHV²³DQDSSURSULDWHH[DPLQDWLRQ´²HYHQ
LI ZH ZHUH WR KDYH DJUHHG WKDW 'U 6FKPLGWJRHVVOLQJ¶V
DVVLJQPHQWWR3HWLWLRQHU¶VFDVHZDVHQRXJK
)RU WKH DERYHVWDWHG UHDVRQV ZH KROG WKDW ZKLOH
3HWLWLRQHU¶V GXH SURFHVV ULJKWV ZHUH YLRODWHG E\ WKH WULDO
FRXUW¶V IDLOXUH WR DSSRLQW DQ LQGHSHQGHQW SV\FKLDWULVW DV
UHTXHVWHG E\ 3HWLWLRQHU WKH HUURU ZDV FRQVWLWXWLRQDOO\
3RZHOOY&ROOLQV 1R
KDUPOHVVDWWKHJXLOWSKDVHRI3HWLWLRQHU¶VWULDOKRZHYHUWKH
HUURU LQ UHODWLRQ WR WKH SHQDOW\ SKDVH RI 3HWLWLRQHU¶V WULDO
UHTXLUHV UHYHUVDO WKXV PDQGDWLQJ WKDW 3HWLWLRQHU¶V GHDWK
VHQWHQFHEHYDFDWHGDQGDQHZPLWLJDWLRQKHDULQJFRQGXFWHG
% 'HQLDORI0RWLRQIRUD&RQWLQXDQFH
$IWHUWKHJXLOWSKDVHRIWKHWULDO3HWLWLRQHU¶VFRXQVHOVRXJKW
D FRQWLQXDQFH IRU WKH SXUSRVH RI REWDLQLQJ DQ DGGLWLRQDO
SV\FKLDWULF H[DPLQDWLRQ IRU SUHVHQWDWLRQ DW WKH PLWLJDWLRQ
KHDULQJZKLFKWKHWULDOFRXUWGHQLHG%HFDXVHZHEHOLHYHWKDW
WKHWULDOFRXUWVKRXOGKDYHJUDQWHG3HWLWLRQHU¶VPRWLRQIRUD
FRQWLQXDQFHZHDOVRJUDQWWKHZULWRQWKLVEDVLV
7KHGHFLVLRQZKHWKHUWRJUDQWDPRWLRQIRUFRQWLQXDQFHLV
ZLWKLQWKHGLVFUHWLRQRIWKHWULDOMXGJH6HH8QJDUY6DUDILWH
86 $EVHQWSURRIRIDYLRODWLRQRI
DVSHFLILFFRQVWLWXWLRQDOSURWHFWLRQDKDEHDVSHWLWLRQHUPXVW
VKRZWKDWDWULDOHUURUZDVVRHJUHJLRXVDVWRGHSULYHKLPRI
DIXQGDPHQWDOO\IDLUDGMXGLFDWLRQWKXVYLRODWLQJFRQVWLWXWLRQDO
SULQFLSOHVRIGXHSURFHVV6HH&RRSHUY6RZGHUV)G
WK&LU $SHWLWLRQHUPXVWDOVRVKRZWKDWWKH
GHQLDO RI KLV UHTXHVW UHVXOWHG LQ DFWXDO SUHMXGLFH WR KLV
GHIHQVH6HH8QLWHG6WDWHVY0RUHQR)G WK
&LU $FWXDO SUHMXGLFH PD\ EH GHPRQVWUDWHG E\
VKRZLQJ WKDW DGGLWLRQDO WLPH ZRXOG KDYH PDGH UHOHYDQW
ZLWQHVVHVDYDLODEOHRURWKHUZLVHEHQHILWHGWKHGHIHQVH6HH
8QLWHG6WDWHVY0DUWLQ)G WK&LU
$PRQJ WKH IDFWRUV WR EH FRQVLGHUHG E\ WKH FRXUW LQ
GHWHUPLQLQJZKHWKHUDFRQWLQXDQFHZDVSURSHUO\GHQLHGDUH
WKHOHQJWKRIWKHUHTXHVWHGGHOD\ZKHWKHURWKHUFRQWLQXDQFHV
KDG EHHQ UHTXHVWHG DQG JUDQWHG WKH FRQYHQLHQFH RU
LQFRQYHQLHQFHWRWKHSDUWLHVZLWQHVVHVFRXQVHODQGWKHFRXUW
ZKHWKHUWKHGHOD\ZDVIRUOHJLWLPDWHUHDVRQVRUZKHWKHULWZDV
³GLODWRU\ SXUSRVHIXO RU FRQWULYHG´ ZKHWKHU WKH GHIHQGDQW
FRQWULEXWHGWRWKHFLUFXPVWDQFHVJLYLQJULVHWRWKHUHTXHVW
ZKHWKHUGHQ\LQJWKHFRQWLQXDQFHZLOOUHVXOWLQLGHQWLILDEOH
SUHMXGLFHWRGHIHQGDQW¶VFDVHDQGWKHFRPSOH[LW\RIWKHFDVH
6HH8QLWHG6WDWHVY%XUWRQ)G '&&LU
-- 15 of 23 --
1R 3RZHOOY&ROOLQV
$SSO\LQJWKHEDODQFLQJWHVWVHWIRUWKLQ%XUWRQWKHGLVWULFW
FRXUW GHWHUPLQHG WKDW DOWKRXJK 3HWLWLRQHU¶V UHTXHVW ZDV
MXVWLILDEOHDQGWKDWVRPHRIWKHIDFWRUVZHLJKHGLQKLVIDYRU
WKHUHZDVQRDEXVHRIGLVFUHWLRQRQWKHSDUWRIWKHVWDWHWULDO
FRXUW7KHFRXUWDOVRWRRNLVVXHZLWKWKHIDFWWKDWFRXQVHOGLG
QRWVSHFLI\WKHOHQJWKRIWKHFRQWLQXDQFHUHTXHVWHG7KHFRXUW
IXUWKHUIRXQGWKDWDGGLWLRQDOWHVWLQJZDVQRWQHFHVVDU\EDVHG
XSRQ WKH UDWLRQDOH WKDW 'U 6FKPLGWJRHVVOLQJ KDG DOUHDG\
WHVWLILHG WKDW RUJDQLF EUDLQ GDPDJH ZRXOG KDYH D PLQLPDO
LPSDFWRQ3HWLWLRQHU¶VWKRXJKWSURFHVVHV)LQDOO\WKHFRXUW
GHWHUPLQHGWKDWDQ\GHOD\LQWKHVHQWHQFLQJSKDVHRIDWULDO
FDXVHVLQFRQYHQLHQFHWRPHPEHUVRIWKHMXU\DQGFUHDWHVD
IXUWKHUGLVUXSWLRQLQWKHLUOLYHV%DVHGRQLWVUHVROXWLRQRI
3HWLWLRQHU¶VILUVWDQGVHFRQGJURXQGVIRUKDEHDVUHOLHI WKH$NH
FODLPV WKHFRXUWFRQFOXGHGWKDW3HWLWLRQHUVXIIHUHGQRDFWXDO
SUHMXGLFHE\WKHWULDOFRXUW¶VUHIXVDOWRJUDQWDFRQWLQXDQFHIRU
SXUSRVHVRIREWDLQLQJDQDGGLWLRQDOSV\FKRORJLFDOHYDOXDWLRQ
2Q DSSHDO 3HWLWLRQHU FRQWHQGV WKDW WKH GLVWULFW FRXUW
LQFRUUHFWO\ZHLJKHGWKHUHOHYDQWIDFWRUVRIWKH%XUWRQWHVW
%DVHG XSRQ RXU KROGLQJ WKDW WKH VHQWHQFLQJ SKDVH RI
SHWLWLRQHU¶VWULDOZDVIXQGDPHQWDOO\XQIDLUZHPXVWDJUHH
'U6FKPLGWJRHVVOLQJ¶VWHVWLPRQ\GLGQRW IXOO\DQVZHUWKH
TXHVWLRQV3HWLWLRQHUVRXJKWWRDQVZHULIKHKDGEHHQJLYHQ
DGGLWLRQDO WLPH :KLOH WKH GLVWULFW FRXUW IRFXVHG RQ 'U
6FKPLGWJRHVVOLQJ¶V WHVWLPRQ\ WKDW VXEWOH RUJDQLF EUDLQ
GDPDJHZRXOGKDYHOLWWOHLPSDFWRQDQLQGLYLGXDOLWIDLOHGWR
FRQVLGHU WKH IDFW WKDW 'U 6FKPLGWJRHVVOLQJ ZDV QRW HYHQ
TXDOLILHG WR GLDJQRVH PXFK OHVV PHDVXUH WKH H[WHQW RI
3HWLWLRQHU¶VDOOHJHGRUJDQLFEUDLQGDPDJH6KHH[SODLQHGWKDW
HYDOXDWLRQ E\ VSHFLDOLVWV ZDV QHFHVVDU\ WR GLDJQRVH DQG
XQGHUVWDQGWKHW\SHDQGH[WHQWRI3HWLWLRQHU¶VDOOHJHGRUJDQLF
LPSDLUPHQW SDUWLFXODUO\ IRU SXUSRVHV RI 3HWLWLRQHU¶V
PLWLJDWLRQKHDULQJ
$FFRUGLQJO\3HWLWLRQHU¶VUHTXHVWZDVQHLWKHUGLODWRU\QRU
FRQWULYHG KH GLG QRW FRQWULEXWH WR WKH UHTXHVW DQG E\ DOO
DSSHDUDQFHVWKHUHTXHVWZRXOGQRWKDYHLQFRQYHQLHQFHG'U
6FKPLGWJRHVVOLQJRUDQ\RWKHUZLWQHVV$OWKRXJKWKHFRXUW
IRXQG WKDW IXUWKHU GHOD\ ZRXOG KDYH GLVUXSWHG WKH MXU\
3RZHOOY&ROOLQV 1R
PHPEHUV¶OLYHVZHEHOLHYHWKDWDQ\LQFRQYHQLHQFHWRWKHMXU\
LQ WKLV UHJDUG SDOHV ZKHQ FRPSDUHG WR WKH JUDYLW\ DQG
PDJQLWXGH RI WKH LVVXH LQYROYHG²LH ZKHWKHU WKH GHDWK
SHQDOW\VKRXOGEHLPSRVHG6HH%XUWRQ)GDW
,QDGGLWLRQWKHGHQLDORIDFRQWLQXDQFHSUHMXGLFHG3HWLWLRQHU
EHFDXVH WKH DGGLWLRQDO WLPH ZRXOG KDYH DIIRUGHG KLP WKH
RSSRUWXQLW\WRJDWKHUDGGLWLRQDOPLWLJDWLRQHYLGHQFHIURPKLV
IDPLO\DQGIULHQGVDVZHOO6HHLG
:HWKHUHIRUHKROGWKDWWKHGLVWULFWFRXUWHUUHGLQXSKROGLQJ
WKH WULDO FRXUW¶V GHQLDO RI 3HWLWLRQHU¶V UHTXHVW IRU D
FRQWLQXDQFHDQGJUDQWWKHZULWRQWKLVEDVLVDVZHOO
& ,QHIIHFWLYH$VVLVWDQFHRI7ULDO&RXQVHO
$OWKRXJK 3HWLWLRQHU ZDLYHG RU GHIDXOWHG PRVW RI KLV
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPVKHSURSHUO\SUHVHQWHG
WKHIROORZLQJFODLPVLQ2KLRVWDWHFRXUWV WULDOFRXQVHO
IDLOHG WR SURSHUO\ LQYHVWLJDWH DQG LQWURGXFH PLWLJDWLQJ
HYLGHQFHGXULQJWKHSHQDOW\SKDVHDQG FRXQVHOIDLOHGWR
REWDLQSURSHUH[SHUWWHVWLPRQ\LQWLPHWRSUHVHQWHYLGHQFHRI
RUJDQLFEUDLQGDPDJHDWWKHJXLOWDQGSHQDOW\SKDVHVRIWKH
WULDO 7KH GLVWULFW FRXUW UHMHFWHG WKHVH FODLPV ILQGLQJ WKDW
3HWLWLRQHU¶VFRXQVHO³GLOLJHQWO\SXUVXHGWKHDSSRLQWPHQWRID
SV\FKRORJLFDO RU SV\FKLDWULF H[SHUW DV IRXQG E\ WKH VWDWH
FRXUWV´ DQG UHDVRQDEO\ UHOLHG RQ 'U 6FKPLGWJRHVVOLQJ WR
SUHVHQWWKHEDFNJURXQGHYLGHQFHLQTXHVWLRQ -$DW
2QDSSHDO3HWLWLRQHUDUJXHVWKDWKLVWULDOFRXQVHO
ZHUH LQHIIHFWLYH LQ WZR ZD\V E\ IDLOLQJ WR LQYHVWLJDWH KLV
EDFNJURXQG IRU PLWLJDWLQJ HYLGHQFH DQG E\ FRQVHTXHQWO\
IDLOLQJWRLQWURGXFHDWWKHVHQWHQFLQJKHDULQJWKHPLWLJDWLQJ
HYLGHQFHZKLFKSURSHULQYHVWLJDWLRQZRXOGKDYHGLVFRYHUHG
3HWLWLRQHU DVVHUWV WKDW WKH WULDO FRXUW¶V GHQLDO RI FRXQVHO¶V
UHSHDWHG UHTXHVWV IRU D GHIHQVH H[SHUW FDXVHG KLP WR EH
GHSULYHGRIWKHHIIHFWLYHDVVLVWDQFHRIFRXQVHO
7RHVWDEOLVKDYLRODWLRQRIWKH6L[WK$PHQGPHQWULJKWWR
FRXQVHO D GHIHQGDQW PXVW GHPRQVWUDWH WKDW FRXQVHO¶V
UHSUHVHQWDWLRQZDVGHILFLHQWDQGWKDWLWDFWXDOO\SUHMXGLFHG
KLP6WULFNODQGY:DVKLQJWRQ86
5HSUHVHQWDWLRQLVGHILFLHQWZKHQLWIDOOVEHORZDQREMHFWLYH
-- 16 of 23 --
1R 3RZHOOY&ROOLQV
VWDQGDUG RI UHDVRQDEOHQHVV XQGHU SUHYDLOLQJ QRUPV 6HH
&DUWHU Y %HOO )G WK &LU 7KH
FODLPDQWPXVWVKRZWKDW³FRXQVHOPDGHHUURUVVRVHULRXVWKDW
FRXQVHOZDVQRWIXQFWLRQLQJDVWKHμFRXQVHO¶JXDUDQWHHGWKH
GHIHQGDQWE\WKH6L[WK$PHQGPHQW´6WULFNODQG86
DW,QFRQVLGHULQJWKH³SUHMXGLFH´IDFWRUWKH6XSUHPH
&RXUWKDVKHOGWKDWHYHQSURIHVVLRQDOO\XQUHDVRQDEOHHUURUVGR
QRWMXVWLI\VHWWLQJDVLGHWKHMXGJPHQWRIDFULPLQDOSURFHHGLQJ
³LIWKHHUURU>V@KDGQRHIIHFWRQWKHMXGJPHQW´,GDW$
SHWLWLRQHUPXVWVKRZWKDW³WKHUHLVDUHDVRQDEOHSUREDELOLW\
WKDWEXWIRUFRXQVHO¶VXQSURIHVVLRQDOHUURUVWKHUHVXOWRIWKH
SURFHHGLQJ ZRXOG KDYH EHHQ GLIIHUHQW´ ,G DW $
UHDVRQDEOH SUREDELOLW\ LV ³D SUREDELOLW\ VXIILFLHQW WR
XQGHUPLQH FRQILGHQFH LQ WKH RXWFRPH´ ,G 7KH XOWLPDWH
IRFXVRIWKHFROOHFWLYHLQTXLU\LVWKHIXQGDPHQWDOIDLUQHVVRI
WKHSURFHHGLQJ,QWKLVYHLQZHPXVWGHWHUPLQHZKHWKHUWKH
UHVXOWRIWKHSURFHHGLQJLVXQUHOLDEOH³EHFDXVHRIDEUHDNGRZQ
LQ WKH DGYHUVDULDO SURFHVV WKDW RXU V\VWHP FRXQWV RQ WR
SURGXFHMXVWUHVXOWV´,GDW7KLV&RXUWKDVDGRSWHGWKH
6WULFNODQG VWDQGDUGV LQ LWV KDEHDV MXULVSUXGHQFH 6HH
5LFNPDQ )G DW *URVHFORVH Y %HOO )G
WK&LU
8SRQUHYLHZRI3HWLWLRQHU¶VFODLPVZHFRQFOXGHWKDWKH
FDQQRW PHHW WKH 6WULFNODQG VWDQGDUG ZLWK UHVSHFW WR KLV
FRXQVHO¶V SHUIRUPDQFH DW WKH JXLOW SKDVH RI WKH WULDO
+RZHYHU ZH KROG WKDW 3HWLWLRQHU ZDV SUHMXGLFHG E\ KLV
FRXQVHO¶VLQHIIHFWLYHDVVLVWDQFHDWWKHSHQDOW\SKDVH
*XLOW3KDVHRI3HWLWLRQHU¶V7ULDO
3HWLWLRQHUFRQWHQGVWKDWKLVUHSUHVHQWDWLRQDWWKHJXLOWSKDVH
ZDV LQHIIHFWLYH EHFDXVH GHIHQVH FRXQVHO IDLOHG WR UHWDLQ D
QHFHVVDU\GHIHQVHH[SHUWWRHYDOXDWHDQGWHVWLI\WKDWJLYHQ
3HWLWLRQHUV¶VPHQWDOOLPLWDWLRQVDQGSUREOHPVKHVKRXOGQRW
KDYH EHHQ IRXQG JXLOW\ RI DJJUDYDWHG PXUGHU 3HWLWLRQHU
IDXOWVGHIHQVHFRXQVHOIRUUHO\LQJVROHO\RQDQHXWUDOH[SHUW
+RZHYHU WKH UHFRUG UHIOHFWV WKDW 3HWLWLRQHU¶V WULDO FRXQVHO
PDGHUHSHDWHGPRWLRQVIRUWKHFRXUWWRSURYLGHSDUWLVDQH[SHUW
SV\FKRORJLFDODVVLVWDQFH3HWLWLRQHUFRQWHQGVWKDWUHJDUGOHVV
3RZHOOY&ROOLQV 1R
RI ZKHWKHU WULDO FRXQVHO DWWHPSWHG WR VHFXUH D TXDOLILHG
H[SHUW WKH IDFW WKDW WULDO FRXQVHO¶V ³IDLOXUH´ ZDV ³FRXUW
LQGXFHG´GRHVQRWPHDQWKDWKLVFRXQVHO¶VSHUIRUPDQFHPHW
RU H[FHHGHG DQ REMHFWLYH VWDQGDUG RI UHDVRQDEOHQHVV
3HWLWLRQHU¶VIDLOXUHWRVXSSRUWKLVEDOGIDFHGDVVHUWLRQVZLWK
OHJDO DXWKRULW\ LV QRW VXUSULVLQJ KLV FRXQVHO¶V UHSHDWHG
UHTXHVWVIRULQGHSHQGHQWH[SHUWDVVLVWDQFHZHUHUHDVRQDEOH
XQGHUDQREMHFWLYHVWDQGDUGVXFKWKDWDQ\IDLOXUHRIWKHFRXUW
WRJUDQWFRXQVHO¶VUHSHDWHGUHTXHVWVFDQQRWEHDWWULEXWHGWR
WKDW FRXQVHO )XUWKHUPRUH HYHQ LI 3HWLWLRQHU FRXOG VKRZ
VRPHGHILFLHQF\LQKLVWULDOFRXQVHO¶VSHUIRUPDQFHDWWKHJXLOW
SKDVHKHKDVIDLOHGWRGHPRQVWUDWHWKDWKHZDVSUHMXGLFHGE\
KLVFRXQVHO¶VIDLOHGDWWHPSWVWRVHFXUHDGHIHQVHH[SHUW6HH
3DUW$VXSUD
3HQDOW\3KDVHRI3HWLWLRQHU¶V7ULDO
3HWLWLRQHUFODLPVWKDWDOWKRXJKKLVWULDOFRXQVHOKDGVHYHUDO
PRQWKVWRSUHSDUHIRUWKHSHQDOW\SKDVHRIKLVWULDOWKH\VSHQW
OHVVWKDQWZRIXOOEXVLQHVVGD\VSUHSDULQJZDLWLQJXQWLODIWHU
WKH FRQFOXVLRQ RI WKH JXLOW SKDVH WR GR VR ,QFUHGLEO\
FRXQVHO¶VPLWLJDWLRQWHVWLPRQ\FRQVLVWHGRIRQO\RQHZLWQHVV
²'U6FKPLGWJRHVVOLQJ%\FDOOLQJ'U6FKPLGWJRHVVOLQJWR
WHVWLI\ FRXQVHO SHUPLWWHG WKH MXU\ WR DJDLQ KHDU WHVWLPRQ\
UHJDUGLQJ3HWLWLRQHU¶VFDSDFLW\WRIRUPWKHLQWHQWDQGSXUSRVH
WRFRPPLWDJJUDYDWHGPXUGHU'U6FKPLGWJRHVVOLQJDJUHHG
ZLWKWKHSURVHFXWRU¶VVXJJHVWLRQWKDW³LWLVDJRRGWKLQJWKDW
>3HWLWLRQHU@LVQRWELJJHUVWURQJHUKHDYLHUDQGVPDUWHURUKH
ZRXOG EH MXVW WKDW PXFK PRUH GDQJHURXV´ 7KH UHFRUG
UHIOHFWVWKDWQXPHURXVIDPLO\PHPEHUVDQGRWKHULQGLYLGXDOV
IURP3HWLWLRQHU¶VSDVWZHUHZLOOLQJWRWHVWLI\RQKLVEHKDOIDW
WKH VHQWHQFLQJ SKDVH KRZHYHU GHIHQVH FRXQVHO GLG QRW
LQWHUYLHZ DQ\ RI 3HWLWLRQHU¶V IDPLO\ PHPEHUV RU IULHQGV
&RXQVHOIDLOHGWRLQYHVWLJDWHUHVHDUFKRUFROOHFWSHUWLQHQW
UHFRUGV UHJDUGLQJ 3HWLWLRQHU¶V EDFNJURXQG RU KLVWRU\ IRU
PLWLJDWLRQSXUSRVHVDQGPDGHQRDWWHPSWWRORFDWHVLJQLILFDQW
SHUVRQV IURP 3HWLWLRQHU¶V SDVW ZKR PD\ KDYH SURYLGHG
YDOXDEOHWHVWLPRQ\UHJDUGLQJPLWLJDWLQJIDFWRUV$OWKRXJK
'U6FKPLGWJRHVVOLQJPDGHYDJXHUHIHUHQFHVWR3HWLWLRQHU¶V
IDPLO\ KLVWRU\ DQG EDFNJURXQG VKH ZDV QRW DEOH WR IXOO\
-- 17 of 23 --
1R 3RZHOOY&ROOLQV
GHVFULEH WR WKH MXU\ WKH H[WHQW RI 3HWLWLRQHU¶V EDFNJURXQG
KLVWRU\DQGFKDUDFWHUIRUPLWLJDWLRQSXUSRVHVEHFDXVHDVVKH
KHUVHOI PHQWLRQHG VKH GLG QRW KDYH WLPH WR LQWHUYLHZ KLV
UHODWLYHV
:H KDYH QR GRXEW WKDW WKLV SHUIRUPDQFH IHOO EHORZ
REMHFWLYHO\UHDVRQDEOHVWDQGDUGVRISURIHVVLRQDOFRQGXFW6HH
6WULFNODQG86DW2KLRODZSURYLGHVWKDWLQD
FDSLWDOVHQWHQFLQJSURFHHGLQJWKHMXU\VKDOOZHLJKDJDLQVWWKH
DJJUDYDWLQJFLUFXPVWDQFHV³WKHQDWXUHDQGFLUFXPVWDQFHVRI
WKH RIIHQVH WKH KLVWRU\ FKDUDFWHU DQG EDFNJURXQG RI WKH
RIIHQGHU´DVZHOODV³>Z@KHWKHUDWWKHWLPHRIFRPPLWWLQJWKH
RIIHQVHWKHRIIHQGHUEHFDXVHRIDPHQWDOGLVHDVHRUGHIHFW
ODFNHGVXEVWDQWLDOFDSDFLW\WRDSSUHFLDWHWKHFULPLQDOLW\RIKLV
FRQGXFWRUFRQIRUPKLVFRQGXFWWRWKHUHTXLUHPHQWVRIWKH
ODZ´DQG³>D@Q\RWKHUIDFWRUVWKDWDUHUHOHYDQWWRWKHLVVXHRI
ZKHWKHUGHIHQGDQWVKRXOGEHVHQWHQFHGWRGHDWK´2KLR5HY
&RGH,QDGGLWLRQWKH$PHULFDQ%DU$VVRFLDWLRQ¶V
3URIHVVLRQDO 6WDQGDUGV VWDWH WKDW D ³ODZ\HU KDV D GXW\ WR
LQYHVWLJDWH μWKH FLUFXPVWDQFHV RI >WKH FOLHQW¶V@ FDVH DQG WR
H[SORUHDOODYHQXHVUHOHYDQWWRWKHPHULWVRIWKHFDVHDQGWKH
SHQDOW\LQWKHHYHQWRIDFRQYLFWLRQ´7KH$%$6WDQGDUGV
IXUWKHUSURYLGHWKDW³>L@QIRUPDWLRQFRQFHUQLQJWKHGHIHQGDQW¶V
EDFNJURXQG HGXFDWLRQ HPSOR\PHQW UHFRUG PHQWDO DQG
HPRWLRQDOVWDELOLW\IDPLO\UHODWLRQVKLSVDQGWKHOLNHZLOOEH
UHOHYDQW DV ZLOO PLWLJDWLQJ FLUFXPVWDQFHV VXUURXQGLQJ WKH
FRPPLVVLRQRIWKHRIIHQVHLWVHOI,QYHVWLJDWLRQLVHVVHQWLDOWR
IXOILOOPHQWRIWKHVHIXQFWLRQV´$%$6WDQGDUGVIRU&ULPLQDO
-XVWLFH6WDQGDUG 6XSS HPSKDVLVDGGHG
,Q OLJKW RI WKHVH XQLYHUVDOO\ UHFRJQL]HG SULQFLSOHV WKLV
&RXUWKDVWDNHQJUHDWSDLQVWRLQVXUHWKDWGHIHQGDQWVGRQRW
VXIIHU DW WKH KDQGV RI GHIHQVH FRXQVHO ZKR IDLO WR PDNH D
SURSHULQYHVWLJDWLRQIRUWKHSHQDOW\SKDVH6HHHJ&DUWHU
)GDW ILQGLQJLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO
ZKHUHFRXQVHOIDLOHGWRLQYHVWLJDWHSHWLWLRQHU¶VIDPLO\VRFLDO
RU SV\FKRORJLFDO EDFNJURXQG 0DSHV )G DW
5LFNPDQ)GDW KROGLQJWKDWIDLOXUHWRLQYHVWLJDWH
IRUWKHVHQWHQFLQJSKDVHLV³FHUWDLQO\LQGLFDWLYHRIDVHULRXVO\
GHILFLHQWSHUIRUPDQFH´ $XVWLQY%HOO)G
3RZHOOY&ROOLQV 1R
WK &LU ILQGLQJ WKDW IDLOXUH WR LQWHUYLHZ DYDLODEOH
IULHQGV DQG IDPLO\ PHPEHUV ³GRHV QRW UHIOHFW VWUDWHJLF
GHFLVLRQEXWUDWKHUDQDEGLFDWLRQRIDGYRFDF\´
$OWKRXJKGHIHQVHFRXQVHOLVDFFRUGHGGHIHUHQFHLQPDNLQJ
GHFLVLRQVDVSDUWRIDVRXQGWULDOVWUDWHJ\GHIHQVHFRXQVHO
PXVW ILUVW SHUIRUP D QHFHVVDU\ LQYHVWLJDWLRQ EHIRUH WKH
GHFLVLRQRIZKHWKHUWRSUHVHQWHYLGHQFHPD\EHFRQVLGHUHG
WULDOVWUDWHJ\6HH6WULFNODQG86DW,Q$XVWLQ
)G DW ZH UHFRJQL]HG WKDW WKH IDLOXUH WR SUHVHQW
PLWLJDWLQJ HYLGHQFH ZKHQ LW ZDV DYDLODEOH FRXOG QRW EH
FRQVLGHUHGDVWUDWHJLFGHFLVLRQEXWUDWKHUDQ³DEGLFDWLRQRI
DGYRFDF\´+HUHDVLQ$XVWLQZHILQGWKDWGHIHQVHFRXQVHO
IDLOHG WR PDNH UHDVRQDEOH LQYHVWLJDWLYH HIIRUWV 'HIHQVH
FRXQVHOVKRXOGKDYHFRQGXFWHGWKHLURZQLQYHVWLJDWLRQDQG
SUHVHQWHG WKH DYDLODEOH ZLWQHVVHV DQG WHVWLPRQ\ UHJDUGLQJ
PLWLJDWLRQ (YHQ LI FRXQVHO FRXOG KDYH DQWLFLSDWHG 'U
6FKPLGWJRHVVOLQJ¶VWHVWLPRQ\DQGFKRVHQRWWRSUHVHQWRWKHU
ZLWQHVVHVDVDPDWWHURIWULDOVWUDWHJ\WKLVDOOHJHGVWUDWHJLF
GHFLVLRQ FDQQRW EH UHDVRQDEOH EHFDXVH FRXQVHO IDLOHG WR
SUHVHUYH RSWLRQV E\ IDLOLQJ WR PDNH HYHQ D OLPLWHG
LQYHVWLJDWLRQ
2XUGHFLVLRQLQ6NDJJVY3DUNHU)G WK&LU
LVDOVRLQVWUXFWLYH6NDJJVLQYROYHGWULDOFRXQVHO¶VXVH
RIDQLQHSWH[SHUWZLWQHVVDWERWKWKHJXLOWDQGSHQDOW\SKDVHV
RIDFDSLWDOFULPLQDOWULDO7KH³SV\FKRORJLVW´LQWKDWFDVHZDV
ERWKLQFRPSHWHQWDQGIUDXGXOHQWKDYLQJGHOLYHUHGEL]DUUHDQG
HFFHQWULFWHVWLPRQ\GXULQJWKHJXLOWSKDVH:HGHWHUPLQHG
WKDW DOWKRXJK ³LW ZDV QRW XQUHDVRQDEOH WR KDYH XVHG >WKH
H[SHUW@GXULQJWKHJXLOWSKDVHRIWKHWULDOFRXQVHO¶VGHFLVLRQ
WRXVH>WKHH[SHUW@DJDLQDWWKHSHQDOW\SKDVHSUHVHQWVXVZLWK
DQHQWLUHO\GLIIHUHQWTXHVWLRQ´,GDW:HIRXQGWKDW
FRXQVHOVKRXOGKDYHIRXQGDGLIIHUHQWSV\FKLDWULFH[SHUWIRU
WULDORIWKHSHQDOW\SKDVHDQGWKDWWKLVGHILFLHQWSHUIRUPDQFH
UHVXOWHGLQSUHVHQWDWLRQRIHVVHQWLDOO\QRPLWLJDWLQJHYLGHQFH
DWDOOHVSHFLDOO\RQWKHRQHWRSLFZKLFKPD\KDYHFRQYLQFHG
MXU\WKDWWKHGHDWKVHQWHQFHZDVQRWMXVWLILHG²WKHGHIHQGDQW¶V
PLOGPHQWDOUHWDUGDWLRQDQGKLVGLPLQLVKHGPHQWDOFDSDFLW\
,G
-- 18 of 23 --
1R 3RZHOOY&ROOLQV
6LPLODUO\ LQ WKH FDVH DW EDU 'U 6FKPLGWJRHVVOLQJ
H[SUHVVHGKHURZQODFNRIFRPSHWHQFHRULQDELOLW\WRSURYLGH
HYLGHQFHWKDW3HWLWLRQHUVXIIHUHGIURPDGLPLQLVKHGPHQWDO
FDSDFLW\GXHWRRUJDQLFEUDLQGDPDJH$OWKRXJKFRXQVHO¶V
SHUIRUPDQFHFDQQRWEHGHHPHGLQVXIILFLHQWRQWKLVJURXQG
DORQH'U6FKPLGWJRHVVOLQJ¶VLQDELOLW\WRSURYLGHFRQFOXVLYH
HYLGHQFHUHJDUGLQJRUJDQLFEUDLQGDPDJHPDGHRWKHUDYHQXHV
RI LQYHVWLJDWLRQ DOO WKH PRUH FUXFLDO 8QGHU WKHVH
FLUFXPVWDQFHV ZH EHOLHYH WKDW 3HWLWLRQHU¶V FRXQVHO ³DFWHG
EHORZDQREMHFWLYHVWDQGDUGRIUHDVRQDEOHQHVVDWVHQWHQFLQJ
HVVHQWLDOO\ SURYLGLQJ QR OHJLWLPDWH PLWLJDWLQJ HYLGHQFH RQ
>3HWLWLRQHU¶V@EHKDOIDQGWKLVIDLOXUHVHYHUHO\XQGHUPLQHV
RXU FRQILGHQFH LQ WKH MXVW RXWFRPH RI WKLV SURFHHGLQJ´
6NDJJV)GDW
:HDOVRILQGWKDW3HWLWLRQHUZDVDFWXDOO\SUHMXGLFHGE\KLV
FRXQVHO¶V GHILFLHQW SHUIRUPDQFH 5HVSRQGHQW DVVHUWV WKDW
3HWLWLRQHU¶VWULDOFRXQVHOSUHVHQWHGHYLGHQFHRI3HWLWLRQHU¶V
EDFNJURXQG YLD WKH WHVWLPRQ\ RI 'U 6FKPLGWJRHVVOLQJ
5HVSRQGHQWDUJXHVWKDWWKHEDFNJURXQGHYLGHQFH3HWLWLRQHU
DOOHJHVKHZRXOGKDYHUHFHLYHGKDGKLVFRXQVHOPDGHDSURSHU
LQYHVWLJDWLRQZDVFXPXODWLYHRIWKHLQIRUPDWLRQSURYLGHGYLD
'U6FKPLGWJRHVVOLQJ¶VPLWLJDWLRQWHVWLPRQ\:HGLVDJUHH
7KHDGGLWLRQDOLQIRUPDWLRQ3HWLWLRQHUVRXJKWWRDGGXFHZDV
FRQWDLQHG LQ VHYHUDO DIILGDYLWV IURP IULHQGV DQG IDPLO\
PHPEHUV7KHGLVWULFWFRXUWGHWHUPLQHGWKDWZKLOHPXFKRI
WKH LQIRUPDWLRQ FRQWDLQHG WKHUHLQ ZDV SHUWLQHQW PLWLJDWLQJ
HYLGHQFHFRXQVHOZDVDEOHWRSUHVHQWWKLVLQIRUPDWLRQWRWKH
MXU\ WKURXJK 'U 6FKPLGWJRHVVOLQJ DQG WKDW FRXQVHO¶V
SHUIRUPDQFH IHOO ZLWKLQ WKH ³ZLGH UDQJH RI UHDVRQDEOH
SURIHVVLRQDO DVVLVWDQFH´ %XW LI FRXQVHO KDG DFWXDOO\
FRQGXFWHGDQLQYHVWLJDWLRQDQGSURGXFHGSHUWLQHQWZLWQHVVHV
MXURUVZRXOGKDYHKHDUGILUVWKDQGDFFRXQWVIURPWKRVHZKR
NQHZ 3HWLWLRQHU EHVW :H EHOLHYH WKDW VXFK SHUVRQDO
WHVWLPRQ\ZRXOGKDYHEHHQRIVLJQLILFDQWEHQHILWGXULQJWKH
SHQDOW\SKDVH)XUWKHUPRUH'U6FKPLGWJRHVVOLQJQHYHUPHW
ZLWK3HWLWLRQHU¶VIDPLO\PHPEHUVRUIULHQGVVRDVWRKDYH
FRQVLGHUHG DQ\ PLWLJDWLQJ LQIRUPDWLRQ WKH\ PD\ KDYH
SURYLGHG
3RZHOOY&ROOLQV 1R
4 <RXKDYHGLVFXVVHGWKHQIXUWKHUWHVWVWKDWZRXOGEH
QHFHVVDU\LQRUGHUWRDVFHUWDLQZKHWKHURUQRW7RQ\
3RZHOOKDVRUJDQLFLPSDLUPHQWLVWKDWFRUUHFW
$ <HVWKDWLVFRUUHFW
4 'RFWRUGR\RXIHHOWKDWWKHVHWHVWVDUHQHFHVVDU\WR
FRPSOHWHDPHQWDOH[DPLQDWLRQRI0U3RZHOOWRJHW
DQDFFXUDWHSLFWXUHRIKLP"
$ <HV,GR
4 'R\RXIHHOWKHUHLVDQ\WKLQJHOVHQHHGHGIRU\RXU
H[DPLQDWLRQZKLFK\RXZHUHQRWDEOHWRGREHFDXVH
RIWKHWLPHFRQVWUDLQWV"
$ 2UGLQDULO\ , ZRXOG IHHO WHVWLQJ VRPHRQH¶V
SV\FKRORJLFDO PDNHXS E\ FRQWDFWLQJ IDPLO\
PHPEHUVDQG RWKHUSHRSOHZKRNQRZWKDWSHUVRQ
ZHOOWHDFKHUVHPSOR\HUV,GLGQRWKDYHWLPHWRGR
WKDWRYHUWKHZHHNHQG
-$DW
0RUHRYHU 'U 6FKPLGWJRHVVOLQJ SUHVHQWHG GDPDJLQJ
LQIRUPDWLRQ WR WKH MXU\ $V ZH UHFHQWO\ KHOG LQ &RPEV Y
&R\OH )G WK &LU SUHVHQWLQJ VXFK
GDPDJLQJLQIRUPDWLRQHVSHFLDOO\ZKHQILUVWKDYLQJIDLOHGWR
FRQGXFWDSURSHULQYHVWLJDWLRQFRQVWLWXWHVVXIILFLHQWJURXQGV
WREHOLHYHWKDWWKHMXU\ZRXOGKDYHGHFLGHGGLIIHUHQWO\RQWKH
PLWLJDWLRQIDFWRUV
7KH GHIHQVH WKHRU\ ZDV WKDW &RPEV¶V LQWR[LFDWLRQ
UHQGHUHG KLP XQDEOH WR DFW ZLWK SXUSRVH RU SULRU
FDOFXODWLRQDQGGHVLJQDQG\HWGHIHQVHFRXQVHOPDGHWZR
FUXFLDOHUURUVWKDWVXEVWDQWLDOO\XQGHUFXWWKLVWKHRU\:H
FRQFOXGH WKDW HDFK RI WKHVH HUURUV LV VXIILFLHQWO\
SUHMXGLFLDO WR VDWLVI\ WKH 6WULFNODQG VWDQGDUG
3UHVHQWDWLRQ RI 'U )LVKHU¶V WHVWLPRQ\ LV SHUKDSV WKH
-- 19 of 23 --
1R 3RZHOOY&ROOLQV
PRVWGHYDVWDWLQJHUURU7KHWHVWLPRQ\RIWKHVROHGHIHQVH
H[SHUW WKDW &RPEV DOWKRXJK LQWR[LFDWHG QHYHUWKHOHVV
DFWHGZLWKSXUSRVHDQGLQWHQWZDVREYLRXVO\GDPDJLQJ
WR WKH GHIHQVH )XUWKHUPRUH 'U )LVKHU V WHVWLPRQ\
SURYLGHG WKH 6WDWH ZLWK LWV PRVW SRZHUIXO HYLGHQFH RI
SXUSRVH
,GDW HPSKDVLVDGGHG 6LPLODUO\LQWKHLQVWDQWFDVH
'U 6FKPLGWJRHVVOLQJ WHVWLILHG WKDW LW ³ZDV D JRRG WKLQJ
>3HWLWLRQHU@LVQRWELJJHUKHDYLHURUVPDUWHURUKHZRXOGEH
MXVW WKDW PXFK GDQJHURXV´ -$ DW ,QFUHGLEO\ WKH
SURVHFXWLRQ HYHQ FLWHG D ODUJH SRUWLRQ RI 'U
6FKPLGWJRHVVOLQJ¶V PLWLJDWLRQ WHVWLPRQ\ LQ VXSSRUW RI LWV
FORVLQJDUJXPHQWDWWKHSHQDOW\SKDVH
:HILQGWKHDERYHDQDO\VLVSDUWLFXODUO\VLJQLILFDQWEHFDXVH
DWRQHSRLQWLQLWVVHQWHQFLQJGHOLEHUDWLRQVWKHMXU\LQIRUPHG
WKH FRXUW WKDW LW ZDV ³DW D VWDOHPDWH´ DQG FRXOG QRW DJUHH
ZKHWKHU WR LPSRVH D GHDWK VHQWHQFH 7KH MXU\¶V DSSDUHQW
GLIILFXOW\ LQ UHDFKLQJ D GHFLVLRQ UHJDUGLQJ WKH DSSURSULDWH
SHQDOW\WRLPSRVHXQGHUWKHVHIDFWVOHDGVXVWREHOLHYHWKDWLI
FRXQVHO KDG FRQGXFWHG D SURSHU LQYHVWLJDWLRQ DQG KDG
SUHVHQWHG FRPSHWHQW SURRI RI PLWLJDWLRQ ³WKHUH LV D
UHDVRQDEOH SUREDELOLW\ WKDW WKH UHVXOW ZRXOG KDYH EHHQ
GLIIHUHQW´6HH6NDJJV)GDW FLWLQJ:LOOLDPVY
7D\ORU6&W :HWKHUHIRUHKROGWKDW
3HWLWLRQHU ZDV SUHMXGLFHG E\ KLV FRXQVHO¶V LQHIIHFWLYH
DVVLVWDQFHDWWKHVHQWHQFLQJSKDVHDQGJUDQWWKHZULWRQWKLV
EDVLVDVZHOO
,9&21&/86,21
)RU WKH IRUHJRLQJ UHDVRQV ZH 5(9(56( WKH GLVWULFW
FRXUW VGHQLDORI3HWLWLRQHU¶VDSSOLFDWLRQIRUDZULWRIKDEHDV
FRUSXVDVWRWKHSHQDOW\SKDVHDQG$)),50DVWRWKHJXLOW
SKDVHRI3HWLWLRQHU¶VWULDODQGZH5(0$1'WRWKHGLVWULFW
FRXUW ZLWK LQVWUXFWLRQV WR LVVXH D ZULW RI KDEHDV FRUSXV
YDFDWLQJ3HWLWLRQHU¶VGHDWKVHQWHQFHXQOHVVWKH6WDWHRI2KLR
FRQGXFWVDQHZSHQDOW\SKDVHSURFHHGLQJZLWKLQGD\VRI
UHPDQG,IWKH6WDWHGRHVHOHFWWRFRQGXFWVXFKDSURFHHGLQJ
ZHSUHVXPHWKDWWKHVWDWHFRXUWZLOOILUVWKDYHWRGHWHUPLQH
3RZHOOY&ROOLQV 1R
ZKHWKHU3HWLWLRQHUFDQEHODZIXOO\H[HFXWHGXQGHUWKH(LJKWK
$PHQGPHQW GXH WR KLV PHQWDO UHWDUGDWLRQ LQ OLJKW RI WKH
6XSUHPH&RXUW¶VGHFLVLRQLQ$WNLQVY9LUJLQLDBBB86BBB
6&W 6KRXOGWKHVWDWHFRXUWGHWHUPLQHWKDW
3HWLWLRQHU¶VFODLPIDLOVXQGHU$WNLQVWKHSURVHFXWLRQZRXOGEH
IUHHWRFRQGXFWDQHZSHQDOW\SKDVHSURFHHGLQJLILWFKRRVHV
WRGRVR
-- 20 of 23 --
1R 3RZHOOY&ROOLQV
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&21&855,1*,13$57',66(17,1*,13$57
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0$57+$&5$,*'$8*+75(<FRQFXUULQJLQSDUWDQG
GLVVHQWLQJLQSDUW$OWKRXJK,DJUHHZLWKWKHPDMRULW\¶VYLHZ
WKDWFRQVWLWXWLRQDOHUURUUHTXLUHVDUHPDQGLQWKLVFDVHIRUD
QHZVHQWHQFLQJKHDULQJ,FDQQRWDJUHHZLWKLWVFRQFOXVLRQ
WKDWWKHVDPHHUURULVKDUPOHVVLQFRQQHFWLRQZLWKWKHMXU\¶V
GHWHUPLQDWLRQRIWKHGHIHQGDQW¶VJXLOW
7KHUHFDQEHQRTXHVWLRQWKDWHQWUHQFKHGSULQFLSOHVRIGXH
SURFHVV UHTXLUH JUHDWHU SURWHFWLRQV IRU LQGLJHQW FDSLWDO
GHIHQGDQWVVXIIHULQJIURPPHQWDOGHIHFWRUGLVHDVHWKDQWKH
OLPLWHG DVVLVWDQFH DOORZHG 3RZHOO LQ KLV WULDO ,Q $NH Y
2NODKRPD86 WKH8QLWHG6WDWHV6XSUHPH
&RXUW FRQILUPHG WKDW D GHIHQGDQW¶V LQGLJHQF\ FDQQRW
FRQVWLWXWLRQDOO\UHVXOWLQDOHVVHUVWDQGDUGRIMXVWLFHWKDQWKDW
DFFRUGHGWRGHIHQGDQWVRIJUHDWHUILQDQFLDOPHDQV$VQRWHG
LQ$NH
7KLV&RXUWKDVORQJUHFRJQL]HGWKDWZKHQD6WDWHEULQJV
LWVMXGLFLDOSRZHUWREHDURQDQLQGLJHQWGHIHQGDQWLQD
FULPLQDOSURFHHGLQJLWPXVWWDNHVWHSVWRDVVXUHWKDWWKH
GHIHQGDQWKDVDIDLURSSRUWXQLW\WRSUHVHQWKLVGHIHQVH
7KLVHOHPHQWDU\SULQFLSOHJURXQGHGLQVLJQLILFDQWSDUWRQ
WKH)RXUWHHQWK$PHQGPHQW¶VGXHSURFHVVJXDUDQWHHRI
IXQGDPHQWDOIDLUQHVVGHULYHVIURPWKHEHOLHIWKDWMXVWLFH
FDQQRWEHHTXDOZKHUHVLPSO\DVDUHVXOWRIKLVSRYHUW\
D GHIHQGDQW LV GHQLHG WKH RSSRUWXQLW\ WR SDUWLFLSDWH
PHDQLQJIXOO\LQDMXGLFLDOSURFHHGLQJLQZKLFKKLVOLEHUW\
LVDWVWDNH
,GDW
$IWHU FRQILUPLQJ WKH HVVHQWLDO UROH IXOILOOHG LQ PDQ\
FULPLQDOWULDOVE\H[SHUWSV\FKRORJLFDOWHVWLPRQ\WKH&RXUW
WKHQH[SOLFLWO\KHOG
3RZHOOY&ROOLQV 1R
>:@KHQDGHIHQGDQWGHPRQVWUDWHVWRWKHWULDOMXGJHWKDW
KLVVDQLW\DWWKHWLPHRIWKHRIIHQVHLVWREHDVLJQLILFDQW
IDFWRUDWWULDOWKH6WDWHPXVWDWDPLQLPXPDVVXUHWKH
GHIHQGDQWDFFHVV WR DFRPSHWHQWSV\FKLDWULVWZKRZLOO
FRQGXFW DQ DSSURSULDWH H[DPLQDWLRQ DQG DVVLVW LQ
HYDOXDWLRQSUHSDUDWLRQDQGSUHVHQWDWLRQRIWKHGHIHQVH
,GDW HPSKDVLVDGGHG %DVHGRQWKHUHFRUGEHIRUHXVLW
LV REYLRXV WKDW LQ WKHLU GHFLVLRQV WKH 2KLR FRXUWV DQG WKH
GLVWULFWFRXUWKDYHPLVDSSOLHG$NHLQWKLVFDVH
7KH6XSUHPH&RXUWZDVH[SOLFLWLQ$NHDQGLQRWKHUSULRU
GHFLVLRQVWKDWGXHSURFHVVPDQGDWHVSURYLVLRQRIWKH³EDVLF
WRROVRIDQDGHTXDWHGHIHQVH´WRLQGLJHQWGHIHQGDQWV6HH
HJ%ULWWY1RUWK&DUROLQD86 7KH
GXW\RIDWULDOFRXUWWKXVLQYROYHVGHWHUPLQLQJ³ZKHWKHUDQG
XQGHUZKDWFRQGLWLRQV´UHTXHVWHGH[SHUWDVVLVWDQFHPXVWEH
RIIHUHG6HH$NH86,QGRLQJVRFRXUWVVKRXOG
H[DPLQHWKUHHHVVHQWLDOIDFWRUV
7KHILUVWLVWKHSULYDWHLQWHUHVWWKDWZLOOEHDIIHFWHGE\WKH
DFWLRQ RI WKH 6WDWH 7KH VHFRQG LV WKH JRYHUQPHQWDO
LQWHUHVW WKDW ZLOO EH DIIHFWHG LI WKH VDIHJXDUG LV WR EH
SURYLGHG 7KH WKLUG LV WKH SUREDEOH YDOXH RI WKH
DGGLWLRQDO RU VXEVWLWXWH SURFHGXUDO VDIHJXDUGV WKDW DUH
VRXJKWDQGWKHULVNRIDQHUURQHRXVGHSULYDWLRQRIWKH
DIIHFWHGLQWHUHVWLIWKRVHVDIHJXDUGVDUHQRWSURYLGHG
,G
&OHDUO\LQDGHDWKSHQDOW\SURFHHGLQJWKHSULYDWHLQWHUHVW
LQUHFHLYLQJDOODVVLVWDQFHQHFHVVDU\IRUDVRXQGGHIHQVHIDU
RXWZHLJKVDQ\JRYHUQPHQWDOLQWHUHVWLQFRVWVDYLQJVTXLFNHU
WULDOVRURWKHUPDWWHUVLPSRUWDQWWRWKHUHOHYDQWJRYHUQPHQWDO
ERG\ 7KH IRFXV LV WKXV XSRQ WKH YDOXH RI WKH DGGLWLRQDO
UHTXHVWHGVDIHJXDUGVWRWKHTXHVWIRUMXVWLFH&LWLQJ7HUU\Y
5HHV )G WK&LU WKHGLVWULFWFRXUW
QRWHGWKDWWKLVFRXUWKDVH[SDQGHGWKH$NHKROGLQJEH\RQG
WKRVHFDVHVLQZKLFKVDQLW\LVDVLJQLILFDQWIDFWRUDWWULDOE\
FRQFOXGLQJWKDWWKHGHIHQGDQWLQ7HUU\³ZDVGHSULYHGRIWKH
RSSRUWXQLW\ WR SUHVHQW DQ HIIHFWLYH GHIHQVH ZKHQ KH ZDV
-- 21 of 23 --
1R 3RZHOOY&ROOLQV
GHQLHGDQLQGHSHQGHQWSDWKRORJLVWLQRUGHUWRFKDOOHQJHWKH
JRYHUQPHQW¶VSRVLWLRQDVWRWKHYLFWLP¶VFDXVHRIGHDWK´,G
7KH FRXUW LQ 7HUU\ DOVR UHFLWHG WKH $NH SULQFLSOH WKDW
³>F@ULPLQDOWULDOVDUHIXQGDPHQWDOO\XQIDLULIDVWDWHSURFHHGV
DJDLQVWDQLQGLJHQWGHIHQGDQWZLWKRXWPDNLQJFHUWDLQWKDWKH
KDVDFFHVVWRWKHUDZPDWHULDOVLQWHJUDOWREXLOGLQJDGHIHQVH´
LG DQG VWDWHG EURDGO\ DQG FRUUHFWO\ WKDW ³>I@XQGDPHQWDO
IDLUQHVV HQWLWOHV DQ LQGLJHQW GHIHQGDQW WR DQ DGHTXDWH
RSSRUWXQLW\WRSUHVHQWKLVFODLPVIDLUO\ZLWKLQWKHDGYHUVDU\
V\VWHP´,G
$SSO\LQJWKHVHFRQVWLWXWLRQDOSULQFLSOHVDQGWKHODZRIWKH
FLUFXLW WKH GLVWULFW FRXUW QRWHG ³WKDW WKH )RXUWHHQWK
$PHQGPHQW¶VGXHSURFHVVJXDUDQWHHRIIXQGDPHQWDOIDLUQHVV
PD\ UHTXLUH WKH 6WDWH WR SURYLGH H[SHUW DVVLVWDQFH WR D
FULPLQDO GHIHQGDQW LQ FDVHV RWKHU WKDQ WKRVH ZKHUH WKH
GHIHQGDQW¶VVDQLW\LVLQLVVXH´1HYHUWKHOHVVLQWKLVPDWWHU
WKHGLVWULFWFRXUWGHWHUPLQHGWKDW3RZHOOZDVQRWHQWLWOHGWR
WKH DVVLVWDQFH RI D SV\FKLDWULF RU SV\FKRORJLFDO H[SHUW
EHFDXVH ³DOWKRXJK SHWLWLRQHU¶V PHQWDO FRQGLWLRQ ZDV
VHULRXVO\ LQ LVVXH LQ WKLV FDVH 'U 6FKPLGWJRHVVOLQJ
DGHTXDWHO\ IXOILOOHG WKH UROH RI D GHIHQVH H[SHUW´ 7KH
PDMRULW\RQDSSHDOKDVUHFRJQL]HGWKHHUURULQWKLVUXOLQJEXW
KROGVWKDWWKHHUURULVKDUPOHVV,FDQQRWDJUHH
:LWKRXWTXHVWLRQDQLQGLJHQWFULPLQDOGHIHQGDQWKDVQR
FRQVWLWXWLRQDOULJKW³WRFKRRVHDSV\FKLDWULVWRIKLVSHUVRQDO
OLNLQJ RU WR UHFHLYH IXQGV WR KLUH KLV RZQ´ ,G 6XFK D
GHIHQGDQWKRZHYHUPXVWKDYHDWOHDVWDFFHVVWR³DFRPSHWHQW
SV\FKLDWULVWIRUWKHSXUSRVHGLVFXVVHG>E\WKH6XSUHPH
&RXUWLQ$NH@´,G,QWKLVPDWWHUWKH2KLRVWDWHFRXUWVDQG
WKH IHGHUDO GLVWULFW FRXUW FRQFOXGHG WKDW 3RZHOO¶V
FRQVWLWXWLRQDOULJKWVZHUHDGHTXDWHO\SURWHFWHGEHFDXVHWKH
SHWLWLRQHUKDG³DFFHVV´WR'U6FKPLGWJRHVVOLQJDQGWRKHU
UHSRUWV'HVSLWHWKHIDFWWKDW3RZHOO¶VDWWRUQH\VZHUHIRUFHG
WRFDOO6FKPLGWJRHVVOLQJDVWKHLURZQZLWQHVVKRZHYHUWKH
PHQWDOKHDOWKSURIHVVLRQDODSSRLQWHGWRHYDOXDWH3RZHOODVD
³IULHQGRIWKHFRXUW´GLGQRWDQGLQGHHGFRXOGQRWIXOILOOWKH
IXQFWLRQGHPDQGHGRIKHUE\WKHGXHSURFHVVSURYLVLRQVRIWKH
IHGHUDOFRQVWLWXWLRQ
3RZHOOY&ROOLQV 1R
6FKPLGWJRHVVOLQJGLGRIIHUWHVWLPRQ\WKDWZDVDWOHDVWLQ
SDUW EHQHILFLDO WR WKH SHWLWLRQHU 0RUHRYHU 3RZHOO¶V
DWWRUQH\V ZLWKRXW TXHVWLRQ ZHUH DIIRUGHG DFFHVV WR
6FKPLGWJRHVVOLQJ DQG WR WKH UHSRUWV VKH SUHSDUHG IRU WKH
FRXUW:KDW3RZHOODQGKLVGHIHQVHWHDPZDVQRWDOORZHG
KRZHYHU ZDV D YHU\ LQWHJUDO SDUW RI WKH YHU\ SURWHFWLRQ
GLVFXVVHGLQ$NH±WKHH[SHUWDVVLVWDQFHQHFHVVDU\WR³DVVLVW
LQHYDOXDWLRQSUHSDUDWLRQDQGSUHVHQWDWLRQRIDGHIHQVH´,G
DW$VH[SODLQHGE\WKH6XSUHPH&RXUW
>:@LWKRXWWKHDVVLVWDQFHRIDSV\FKLDWULVWWRFRQGXFWD
SURIHVVLRQDO H[DPLQDWLRQ RQ LVVXHV UHOHYDQW WR WKH
GHIHQVHWRKHOSGHWHUPLQHZKHWKHUWKHLQVDQLW\GHIHQVH
LVYLDEOHWRSUHVHQWWHVWLPRQ\DQGWRDVVLVWLQSUHSDULQJ
WKHFURVVH[DPLQDWLRQRID6WDWH¶VSV\FKLDWULFZLWQHVVHV
WKH ULVN RI DQ LQDFFXUDWH UHVROXWLRQ RI VDQLW\ LVVXHV LV
H[WUHPHO\KLJK
,GDW
7KHPDMRULW\FRQFOXGHVWKDWWKHWULDOFRXUW¶VHUURULQIDLOLQJ
WRDSSRLQWDQLQGHSHQGHQWH[SHUWWRDVVLVWGHIHQVHFRXQVHOLQ
WKLV FDVH ZDV KDUPOHVV EHFDXVH WKH ³3HWLWLRQHU¶V RZQ
DGPLVVLRQVSURYLGHWKHEDVLVIRUDMXU\WRILQGWKDWKHZDV
FDSDEOH RI SHUIRUPLQJ SXUSRVHIXO DFWV DQG WKDW KH LQ IDFW
FRPPLWWHGWKHDFWVZKLFKOHGWR7ULQD¶VGHDWK´:KLOHWKHUH
FDQEHQRIDXOWIRXQGZLWKWKHXOWLPDWHFRQFOXVLRQWKDWWKH
SHWLWLRQHUGLGLQGHHGFDXVH7ULQD¶VGHDWKWKHIDFWWKDWKH
DSSHDUHGWRDFW³SXUSRVHIXOO\´EHJVWKHXOWLPDWHTXHVWLRQLQ
WKLV FDVH 1HLWKHU WKH SHWLWLRQHU¶V DFWV DW WKH WLPH RI WKH
RIIHQVH QRU KLV VWDWHPHQWV LPPHGLDWHO\ DIWHUZDUG FDQ EH
WDNHQ DV FRQFOXVLYH RI KLV DELOLW\ WR FRQWURO KLV DFWLRQV
2EYLRXVO\ZLWKRXWWKHDVVLVWDQFHRIDQH[SHUWWKHSHWLWLRQHU
ZDV KDPVWUXQJ LQ KLV HIIRUWV WR FKDOOHQJH DQ\ RI WKH
FRQFOXVLRQV UHDFKHG E\ WKH ³IULHQG RI WKH FRXUW´
)XUWKHUPRUH DV UHYHDOHG GXULQJ WKH SRVWFRQYLFWLRQ
SURFHHGLQJVLQWKLVPDWWHU'U-DPHV7DQOH\DPHQWDOKHDOWK
H[SHUWZKRVHVHUYLFHV3RZHOOZDVILQDOO\DEOHWRREWDLQGLG
FRQFOXGHWKDW3RZHOOVXIIHUHGIURPRUJDQLFEUDLQGDPDJHDQG
WKDWWKHGDPDJHWRJHWKHUZLWKWKHGHIHQGDQW¶VORZ,4DQG
-- 22 of 23 --
1R 3RZHOOY&ROOLQV
:LWK ZKDW , FRQVLGHU WR EH XQZDUUDQWHG FHUWLWXGH WKH PDMRULW\
DWWHPSWV WR EROVWHU LWV FRQFOXVLRQ WKDW WKLV GHQLDO RI IXQGDPHQWDO GXH
SURFHVV LV QHYHUWKHOHVV KDUPOHVV E\ DVVHUWLQJ WKDW ³'U 7DQOH\¶V WHVWLPRQ\
WKDW 3HWLWLRQHU μKDG VLJQLILFDQW GLIILFXOW\ FRQIRUPLQJ KLV FRQGXFW WR
WKH UHTXLUHPHQWV RI WKH ODZ¶ IDOOV VKRUW RI 2KLR¶V VWDQGDUG IRU LQVDQLW\
DSSOLFDEOH DW WKH WLPH RI 7ULQD¶V PXUGHU QDPHO\ ZKHWKHU 3HWLWLRQHU
ODFNHG WKH FDSDFLW\ WR FRQIRUP KLV FRQGXFW WR WKH UHTXLUHPHQWV RI WKH
ODZ´ ,Q VR GRLQJ WKH PDMRULW\ LPSRVHV XSRQ VSRQWDQHRXV WHVWLPRQ\ D
UHTXLUHPHQW RI OHJDO SUHFLVLRQ WKDW PLJKW ZHOO REVFXUH WKH WUXH PHDQLQJ
RI WKH RSLQLRQ RIIHUHG 7KH UHOHYDQW FROORTX\ ZLWK 'U 7DQOH\ LQFOXGHG
LQ IXOOHU H[SRVLWLRQ WKH IROORZLQJ H[FKDQJH
4 'R \RX KDYH DQ RSLQLRQ EDVHG XSRQ D UHDVRQDEOH GHJUHH RI
QHXURSV\FKRORJLFDO RU VFLHQWLILF FHUWDLQW\ DV WR ZKHWKHU DW
WKH WLPH RI WKH RIIHQVH 0U 3RZHOO EHFDXVH RI D PHQWDO
GLVHDVH RU GHIHFW ODFNHG VXEVWDQWLDO FDSDFLW\ WR DSSUHFLDWH
WKH FULPLQDOLW\ RI KLV FRQGXFW RU WR FRQIRUP KLV FRQGXFW WR
WKH UHTXLUHPHQWV RI WKH ODZ"
$ <HV , GR
4 &RXOG \RX WHOO WKH &RXUW ZKDW WKDW RSLQLRQ LV"
$ 0\ RSLQLRQ 0U 3RZHOO KDG VLJQLILFDQW GLIILFXOW\ ZLWK WKH
VHFRQG SDUW RI WKDW VWDWHPHQW WKDW LV FRQIRUPLQJ KLV FRQGXFW
WR WKH UHTXLUHPHQWV RI WKH ODZ
7KH PDMRULW\¶V DUJXPHQW WKDW LQ VXFK D FRQWH[W WKH FRQFHSWV RI ³ODFN
RI FDSDFLW\´ DQG ³VLJQLILFDQW GLIILFXOW\´ FDQ QHYHU EH FRQVWUXHG
V\QRQ\PRXVO\ LV LQ P\ MXGJPHQW GLVLQJHQXRXV ,QVWHDG , ZRXOG KROG
WKDW WKH SRVVLEOLW\ WKDW 3RZHOO¶V ³VLJQLILFDQW GLIILFXOW\´ LQ FRQIRUPLQJ KLV
FRQGXFW WR OHJDO UHTXLUHPHQWV ZDV LQ IDFW KLV ODFN RI FDSDFLW\ WR GR VR
FUHDWHV DW OHDVW D ³JUDYH GRXEW´ DV WR WKH KDUPOHVVQHVV RI WKH HUURU
RWKHU IDFWRUV FRPSURPLVHG 3RZHOO¶V DELOLW\ WR WKLQN
FRJQLWLYHO\VXFKWKDWWKHGHIHQGDQWPLJKWQRWKDYHEHHQDEOH
WRFRQIRUPKLVFRQGXFWWRWKHUHTXLUHPHQWVRIWKHODZDWWKH
WLPH RI WKH FULPH &RQVHTXHQWO\ WKH YDOLGLW\ RI WKH
SHWLWLRQHU¶VFRQYLFWLRQVWDQGVTXHVWLRQHG DV DUHVXOWRIWKH
WULDOFRXUW¶VUHIXVDOWRDOORZWKHGHIHQGDQWFRQVWLWXWLRQDOO\
PDQGDWHGDVVLVWDQFHLQWKHSUHSDUDWLRQRIKLVGHIHQVH,IDLO
WRVHHKRZWKLVGHSULYDWLRQFDQEHFRQVLGHUHGKDUPOHVVXQGHU
DOOWKHFLUFXPVWDQFHVRIWKLVFDVH
,WLVQRWRQO\WKHDFFHVVWRWHVWUHVXOWVWKDW$NHUHTXLUHVLI
VXFKDFFHVVZHUHWKHH[WHQWRIWKHGXHSURFHVVSURWHFWLRQV
DIIRUGHG LQGLJHQW FULPLQDOV ZKRVH VDQLW\ DQG PHQWDO
3RZHOOY&ROOLQV 1R
FXOSDELOLW\DWWKHWLPHRIWKHFULPHDUHFDOOHGLQWRTXHVWLRQ
ODZ\HUV XQWUDLQHG LQ SV\FKRORJ\ DQG SV\FKLDWU\ FRXOG EH
IORRGHGZLWKGDWDDQGRSLQLRQZLWKQROHJLWLPDWHRSSRUWXQLW\
WRXQGHUVWDQGTXHVWLRQRUGLVSXWHWKHPDWHULDO,QVWHDGWKH
FOHDUODQJXDJHRI$NHSURYLGHVWKDWEDVLFSULQFLSOHVRIGXH
SURFHVV DQG MXVWLFH UHTXLUH WKDW GHIHQGDQWV SUHVHQWHG ZLWK
VXFKLQIRUPDWLRQPXVWDOVREHSURYLGHGDVVLVWDQFHLQQHXWUDOO\
HYDOXDWLQJ WKH GLVFORVXUHV DQG SUHSDULQJ LI SRVVLEOH DQ
DGHTXDWHGHIHQVHWRWKHILQGLQJV6LJQLILFDQWO\WKDWSRVVLELOLW\
ZDVQRWDIIRUGHGWKHSHWLWLRQHUDWWULDO$JDLQ,FDQQRWVHH
WKDWVXFKDQHUURUFDQEHFRQVLGHUHGKDUPOHVV
)RU WKHVH UHDVRQV , ZRXOG UHYHUVH WKH GLVWULFW FRXUW¶V
MXGJPHQWLQLWVHQWLUHW\DQGUHPDQGIRULVVXDQFHRIDZULWWKDW
ZRXOGPDQGDWHDQHZWULDOIRUWKHSHWLWLRQHUDVZHOODVDQHZ
VHQWHQFLQJSURFHHGLQJ,QWKHDEVHQFHRIVXFKDQRUGHUE\WKLV
FRXUW,UHVSHFWIXOO\GLVVHQW
-- 23 of 23 --
Verbinden Sie Omnilex, um den Rechtskorpus über Ihren KI-Assistenten zu durchsuchen.