01a0079p.06

98-3546Court of Appeals for the Sixth CircuitMar 26, 2001

Full text


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 &2/(0$1
3HWLWLRQHU$SSHOODQW
Y
%(77< 0,7&+(//:DUGHQ
5HVSRQGHQW$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL
1RV²6DQGUD6%HFNZLWK
'LVWULFW-XGJH
$UJXHG'HFHPEHU
'HFLGHGDQG)LOHG0DUFK
%HIRUH0(55,775<$1DQG%2**6&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 'DYLG & 6WHEELQV &ROXPEXV 2KLR IRU
$SSHOODQW&KDUOHV/:LOOH2)),&(2)7+($77251(<
*(1(5$/ 2) 2+,2 &ROXPEXV 2KLR IRU $SSHOOHH
21%5,()'DYLG&6WHEELQV&ROXPEXV2KLR)UHGULF)
.D\ )('(5$/ 38%/,& '()(1'(5 7XFVRQ $UL]RQD
'DOH $ %DLFK 2)),&( 2) 7+( )('(5$/ 38%/,&
'()(1'(5)257+(',675,&72)$5,=21$3KRHQL[

-- 1 of 10 --

&ROHPDQY0LWFKHOO 1R
$UL]RQDIRU$SSHOODQW&KDUOHV/:LOOH2)),&(2)7+(
$77251(< *(1(5$/ 2) 2+,2 &ROXPEXV 2KLR IRU
$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
5<$1&LUFXLW-XGJH3HWLWLRQHU$OWRQ&ROHPDQKDVEHHQ
FRQYLFWHG RI PXUGHU LQ DQ 2KLR VWDWH FRXUW DQG KDV EHHQ
VHQWHQFHGWRGHDWK+HQRZDSSHDOVWKHGLVWULFWFRXUW¶VRUGHU
GLVPLVVLQJKLVKDEHDVFRUSXVSHWLWLRQEURXJKWSXUVXDQWWR
86&†&ROHPDQUDLVHVVHYHUDODVVLJQPHQWVRIHUURU
WKH PRVW VHULRXV RI ZKLFK DUH WKH GLVWULFW FRXUW HUUHG
ZKHQLWKHOGWKDW&ROHPDQKDGSURFHGXUDOO\GHIDXOWHGRQ
RI WKH FODLPV UDLVHG LQ KLV KDEHDV SHWLWLRQ KLV
FRQVWLWXWLRQDO GXH SURFHVV ULJKWV ZHUH YLRODWHG EHFDXVH RI
SURVHFXWRULDOPLVFRQGXFWDQGWKHLQWURGXFWLRQRI³RWKHUDFWV´
HYLGHQFH DQG KH ZDV GHQLHG HIIHFWLYH DVVLVWDQFH RI
FRXQVHO DW VHQWHQFLQJ EHFDXVH KLV DWWRUQH\V IDLOHG WR IXOO\
LQYHVWLJDWHKLVEDFNJURXQGDQGPHQWDOKHDOWKIRUSXUSRVHVRI
RIIHULQJHYLGHQFHLQPLWLJDWLRQ)RUWKHUHDVRQVGLVFXVVHG
EHORZZHZLOODIILUPWKHMXGJPHQWRIWKHGLVWULFWFRXUW
,
$
2Q-XO\&ROHPDQDQGKLVJLUOIULHQG'HEUD'
%URZQDUULYHGYLDELF\FOHLQ1RUZRRG2KLRDQGVWRSSHGDW
WKH KRPH RI +DUU\ DQG 0DUOHQH :DOWHUV DURXQG DP
$IWHULQTXLULQJDERXWDFDPSLQJWUDLOHUWKH:DOWHUVHVKDGIRU
VDOH&ROHPDQDQG%URZQZHUHLQYLWHGLQWRWKH:DOWHUVHV¶
KRPH2QFHLQVLGH&ROHPDQSLFNHGXSDZRRGHQFDQGOHVWLFN
DQGEHJDQVWULNLQJ0U:DOWHUVRQWKHEDFNRIWKHKHDG
:KHQWKH:DOWHUVHV¶GDXJKWHU6KHULDUULYHGKRPHIURP
ZRUNDURXQGSPWKHVDPHGD\VKHIRXQGWKHKRXVH
VSODWWHUHGZLWKEORRGDQGKHUSDUHQWV¶PRWLRQOHVVERGLHVO\LQJ
DW WKH ERWWRP RI WKH EDVHPHQW VWHSV 0U :DOWHUV EDUHO\
1R &ROHPDQY0LWFKHOO
RPLWWHG 1RWKLQJ LQ WKH WULDO UHFRUG WKDW PHPRULDOL]HV
&ROHPDQ¶VH[WHQVLYHSDUWLFLSDWLRQLQWKHWULDOVXJJHVWVWKDWKH
ODFNHG D ³UDWLRQDO DQG IDFWXDO XQGHUVWDQGLQJ´ RI WKH
SURFHHGLQJVDJDLQVWKLPDQGWKHSRWHQWLDOLPSDFWRIXWLOL]LQJ
DUHVLGXDOGRXEWWKHRU\DWVHQWHQFLQJ
:KLOHUHFHQWGHFLVLRQVIURPWKLVFRXUWKDYHHPSKDVL]HG
WKDWIDLOXUHWRSUHVHQWPLWLJDWLQJHYLGHQFHDWVHQWHQFLQJPD\
FRQVWLWXWHLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOXQGHUWKH6L[WK
$PHQGPHQW FRXQVHO PD\ QHYHUWKHOHVV PDNH D UHDVRQDEOH
GHFLVLRQWKDWLQYHVWLJDWLRQLVQRWQHFHVVDU\6HH6WULFNODQG
86 DW ,QGHHG WKH 6WULFNODQG &RXUW QRWHG WKDW
³>W@KHUHDVRQDEOHQHVVRIFRXQVHO¶VDFWLRQVPD\EHGHWHUPLQHG
RUVXEVWDQWLDOO\LQIOXHQFHGE\WKHGHIHQGDQW¶VRZQVWDWHPHQWV
RUDFWLRQV&RXQVHO¶VDFWLRQVDUHXVXDOO\EDVHGTXLWHSURSHUO\
RQLQIRUPHGVWUDWHJLFFKRLFHVPDGHE\WKHGHIHQGDQWDQGRQ
LQIRUPDWLRQVXSSOLHGE\WKHGHIHQGDQW´,G
&ROHPDQ DGPLWV WKDW KH GLG QRW FRRSHUDWH ZLWK FRXQVHO
UHJDUGLQJWKHLQYHVWLJDWLRQDQGLGHQWLILFDWLRQRIPLWLJDWLQJ
HYLGHQFHLPSRVHGUHVWULFWLRQVXSRQFRXQVHODQGUHIXVHGWR
VXEPLWWRIXUWKHUSV\FKRORJLFDORUSV\FKLDWULFWHVWLQJ$IWHU
SUHVHQWLQJ&ROHPDQZLWKKLVRSWLRQVFRXQVHOSURFHHGHGZLWK
WKH UHVLGXDO GRXEW WKHRU\ RQO\ DW &ROHPDQ¶V GLUHFWLRQ
&ROHPDQZDVFRPSHWHQWWRVWDQGWULDODQGFRPSHWHQWWRDVVLVW
KLVODZ\HUZLWKVWUDWHJLFFKRLFHV+HUHSHDWHGO\DGYLVHGKLV
ODZ\HUWRSURFHHGZLWKWKHUHVLGXDOGRXEWWKHRU\DQGQRWWR
LQYHVWLJDWHSRVVLEOHPLWLJDWLQJIDFWRUV$QDWWRUQH\¶VFRQGXFW
LVQRWGHILFLHQWVLPSO\IRUIROORZLQJKLVFOLHQW¶VLQVWUXFWLRQV
6HH -RQHV 86 DW 7KH SHWLWLRQHU ZDV QRW
GHSULYHGRIKLV6L[WK$PHQGPHQWULJKWWRHIIHFWLYHDVVLVWDQFH
RIFRXQVHODWVHQWHQFLQJXQGHUWKH6WULFNODQGVWDQGDUG
9,,,
)RUWKHIRUHJRLQJUHDVRQVWKHMXGJPHQWRIWKHGLVWULFWFRXUW
LV$)),50('

-- 2 of 10 --

&ROHPDQY0LWFKHOO 1R
$QGWKH0DSHVFRXUWDOVRVWDWHGWKDW³ZKHQDFOLHQWIDFHV
WKHSURVSHFWRIEHLQJSXWWRGHDWKXQOHVVFRXQVHOREWDLQVDQG
SUHVHQWVVRPHWKLQJLQPLWLJDWLRQPLQLPDOVWDQGDUGVUHTXLUH
VRPHLQYHVWLJDWLRQ´,G5HFHQWO\LQ&DUWHUY%HOO)G
WK&LU DQG6NDJJVY3DUNHU)G
WK&LU WKLVFRXUWKDVKHOGWKDWIDLOXUHWR
LQYHVWLJDWHSRVVLEOHPLWLJDWLQJIDFWRUVDQGIDLOXUHWRSUHVHQW
PLWLJDWLQJHYLGHQFHDWVHQWHQFLQJFDQFRQVWLWXWHLQHIIHFWLYH
DVVLVWDQFHRIFRXQVHOXQGHUWKH6L[WK$PHQGPHQW
%XWWKLVFDVHLVGLVWLQJXLVKDEOHIURP0DSHV&DUWHUDQG
6NDJJVEHFDXVHDIWHUWKHYDULRXVRSWLRQVIRUSURFHHGLQJLQWKH
VHQWHQFLQJSKDVHRIWKHFDVHZHUHH[SODLQHGWRKLP&ROHPDQ
GLUHFWHGKLVFRXQVHOWRSURFHHGZLWKWKHUHVLGXDOGRXEWWKHRU\
ZKLFKGLGQRWLQFOXGHWKHLQWURGXFWLRQRIPLWLJDWLQJHYLGHQFH
UHODWLQJ WR &ROHPDQ¶V SDVW PHQWDO KLVWRU\ &ROHPDQ QRZ
DUJXHV WKDW KLV FRXQVHO ZDV LQHIIHFWLYH IRU IROORZLQJ KLV
LQVWUXFWLRQV EHFDXVH FRXQVHO VKRXOG KDYH UHDOL]HG WKDW KH
ODFNHG WKH FRPSHWHQFH QHHGHG WR FKRRVH DQ DSSURSULDWH
VHQWHQFLQJVWUDWHJ\
,WLVZHOOHVWDEOLVKHGWKDWDFULPLQDOGHIHQGDQWPD\QRWEH
WULHGXQOHVVKHLVFRPSHWHQW*RGLQH]Y0RUDQ86
7REHFRPSHWHQWIRUWULDODGHIHQGDQWPXVW
KDYH ³VXIILFLHQW DELOLW\ WR FRQVXOW ZLWK KLV ODZ\HUV DQG D
UHDVRQDEOHGHJUHHRIUDWLRQDODQGIDFWXDOXQGHUVWDQGLQJRIWKH
SURFHHGLQJVDJDLQVWKLP´8QLWHG6WDWHVY)RUG)G
WK&LU FHUWGHQLHG86
*RGLQH] FODULILHG WKDW WKH OHYHO RI FRPSHWHQFH QHHGHG WR
ZDLYHFRXQVHOLVWKHVDPHDVWKDWQHHGHGWRVWDQGWULDO6HH
*RGLQH]86DW
:H EHOLHYH WKDW WKH *RGLQH] VWDQGDUG VKRXOG DOVR DSSO\
KHUHWRGHWHUPLQHZKHWKHU&ROHPDQZDVFRPSHWHQWHQRXJKWR
LQVWUXFWKLVFRXQVHODVWRWKHDSSURSULDWHVWUDWHJ\WRSXUVXHDW
VHQWHQFLQJ$VWKHGLVWULFWFRXUWUHFRJQL]HG³&ROHPDQDFWHG
DVFRFRXQVHOWRWKHH[WHQWRIDGGUHVVLQJWKHMXU\H[DPLQLQJ
DW OHDVW RQH ZLWQHVV DQG SDUWLFLSDWLQJ LQ VLGHEHQFK
FRQIHUHQFHV EHWZHHQ FRXQVHO DQG WKH MXGJH DV ZHOO DV
SUHVHQWLQJ KLV RZQ PRWLRQV´ ,QWHUQDO TXRWDWLRQ PDUNV
1R &ROHPDQY0LWFKHOO
EUHDWKLQJKDGKLVKDQGVKDQGFXIIHGEHKLQGKLVEDFNDQGKLV
IHHWWLHGWRJHWKHUZLWKHOHFWULFDOFRUGV0UV:DOWHUVDOUHDG\
GHDGKDGDEORRG\VKHHWFRYHULQJKHUKHDG+HUKDQGVZHUH
ERXQGEHKLQGKHUEDFNDQGKHUIHHWZHUHWLHGWRJHWKHUZLWK
HOHFWULFDOFRUGV$WWULDOH[SHUWWHVWLPRQ\LQGLFDWHGWKDW0UV
:DOWHUVKDGEHHQVWUXFNRQWKHKHDGDSSUR[LPDWHO\WLPHV
7ZHOYHODFHUDWLRQVVHYHUDOPDGHZLWKDSDLURIYLVHJULSV
FRYHUHG KHU IDFH DQG VFDOS 7KH EDFN RI KHU VNXOO ZDV
VPDVKHGWRSLHFHVDQGSDUWVRIERWKKHUVNXOODQGEUDLQZHUH
PLVVLQJ0U:DOWHUVVXUYLYHGWKHEHDWLQJZLWKVRPHGHJUHH
RIEUDLQGDPDJH
0RQH\MHZHOU\VKRHVDQGWKHIDPLO\FDUKDGEHHQVWROHQ
7ZRELF\FOHVZHUHIRXQGDEDQGRQHGLQWKH:DOWHUVHV¶\DUG
DQG &ROHPDQ¶V ILQJHUSULQWV ZHUH IRXQG RQ D EURNHQ VRGD
ERWWOHLQWKHOLYLQJURRP
&ROHPDQ DQG %URZQ KDYH EHHQ LPSOLFDWHG LQ VHYHUDO
PXUGHUVUDSHVNLGQDSSLQJVDQGDUPHGUREEHULHVWKDWZHUH
FRPPLWWHGLQVHYHUDO0LGZHVWHUQVWDWHVGXULQJWKHVXPPHURI

%
$+DPLOWRQ&RXQW\JUDQGMXU\LQGLFWHG&ROHPDQRQWKH
IROORZLQJ ILYH FRXQWV DJJUDYDWHG PXUGHU ZKLOH
FRPPLWWLQJDJJUDYDWHGEXUJODU\ DJJUDYDWHGPXUGHUZKLOH
FRPPLWWLQJ DJJUDYDWHG UREEHU\ DWWHPSWHG DJJUDYDWHG
PXUGHU DJJUDYDWHGUREEHU\DQG DJJUDYDWHGEXUJODU\
)ROORZLQJWULDODQ2KLRMXU\UHWXUQHGDYHUGLFWRIJXLOW\RQDOO
FKDUJHV DQG &ROHPDQ ZDV VHQWHQFHG WR GHDWK IRU WKH
DJJUDYDWHGPXUGHURI0UV:DOWHUV&ROHPDQ¶VMXGJPHQWRI
FRQYLFWLRQDQGKLVGHDWKVHQWHQFHZHUHDIILUPHGE\WKH2KLR
&RXUW RI $SSHDOV 6WDWH Y &ROHPDQ 1RV & %
$:/ 2KLR&W$SS'HF
DQGWKH2KLR6XSUHPH&RXUW6WDWHY&ROHPDQ1(G
2KLR 7KH8QLWHG6WDWHV6XSUHPH&RXUWGHQLHG
FHUWLRUDUL&ROHPDQY2KLR86
&ROHPDQWKHQSHWLWLRQHGWKHWULDOFRXUWIRUSRVWFRQYLFWLRQ
UHOLHISXUVXDQWWR2KLR5HY&RGH$QQ†7KHWULDO

-- 3 of 10 --

&ROHPDQY0LWFKHOO 1R
FRXUWZLWKRXWFRQGXFWLQJDQHYLGHQWLDU\KHDULQJDGRSWHGWKH
VWDWH¶VSURSRVHGILQGLQJVRIIDFWDQGFRQFOXVLRQVRIODZDQG
GHQLHGUHOLHI7KH2KLR&RXUWRI$SSHDOVDIILUPHGWKHWULDO
FRXUW¶VGHFLVLRQ6WDWHY&ROHPDQ1R&:/
2KLR&W$SS0DU DQGWKH2KLR6XSUHPH
&RXUW GLVPLVVHG &ROHPDQ¶V DSSHDO UXOLQJ WKDW LW ODFNHG
MXULVGLFWLRQ6WDWHY&ROHPDQ1(G 2KLR
2Q-XO\&ROHPDQILOHGDQ$SSOLFDWLRQIRU'HOD\HG
5HFRQVLGHUDWLRQLQWKH2KLR&RXUWRI$SSHDOVDOOHJLQJWKDW
KLV FRXQVHO RQ GLUHFW DSSHDO KDG EHHQ FRQVWLWXWLRQDOO\
LQHIIHFWLYH 7KH &RXUW RI $SSHDOV GHQLHG WKH DSSOLFDWLRQ
UXOLQJWKDW&ROHPDQKDGIDLOHGWRVKRZJRRGFDXVHIRUILOLQJ
LWPRUHWKDQGD\VDIWHUWKHFRXUW¶VMXGJPHQW6HH2KLR
$SS5 % E 2Q2FWREHUWKH2KLR6XSUHPH
&RXUW DIILUPHG WKH &RXUW RI $SSHDOV¶ GHFLVLRQ GHQLHG
&ROHPDQ¶VUHTXHVWIRUUHFRQVLGHUDWLRQDQGUHYRNHGWKHVWD\
RIH[HFXWLRQRQ&ROHPDQ¶VGHDWKVHQWHQFH
2Q -DQXDU\ &ROHPDQ ILOHG KLV KDEHDV FRUSXV
SHWLWLRQLQIHGHUDOFRXUW+HEURXJKWDVVLJQPHQWVRIHUURU
7KH GLVWULFW FRXUW FRQFOXGHG WKDW RI WKH DVVLJQPHQWV RI
HUURUZHUHSURFHGXUDOO\EDUUHGEHFDXVH&ROHPDQKDGIDLOHGWR
UDLVH WKHP RQ GLUHFW DSSHDO LQ VWDWH FRXUW 7KH UHPDLQLQJ
DVVLJQPHQWVRIHUURUZHUHIRXQGWREHZLWKRXWPHULW
2Q)HEUXDU\WKHGLVWULFWFRXUWJUDQWHG&ROHPDQ¶V
PRWLRQWRFRQVROLGDWHWKUHH KDEHDVFDVHVWKHVHQWHQFHRI
GHDWKIRUWKHPXUGHURI0UV:DOWHUVDVHFRQGVHQWHQFHRI
GHDWKIURPKLVFRQYLFWLRQIRUDQRWKHUPXUGHULQ2KLRDQGD
FRQYLFWLRQIRULQWHUVWDWHNLGQDSSLQJ2Q)HEUXDU\
WKHGLVWULFWFRXUWGHQLHGLQWHUDOLD&ROHPDQ¶VKDEHDVFRUSXV
SHWLWLRQSHUWDLQLQJWRWKHPXUGHURI0UV:DOWHUV
&ROHPDQWLPHO\DSSHDOHGWKHGLVWULFWFRXUW¶VMXGJPHQWLQ
WKHFRQVROLGDWHGFDVHDQGWKLVFRXUWWKHQVHYHUHG&ROHPDQ¶V
DSSHDO&RQVHTXHQWO\WKLVDSSHDOSHUWDLQVRQO\WRWKHGHQLDO
RIKDEHDVFRUSXVUHOLHILQWKHFDSLWDOFDVHLQYROYLQJWKHGHDWK
RI0UV:DOWHUV
1R &ROHPDQY0LWFKHOO
VRPHZKHUH EHWZHHQ μEH\RQG D UHDVRQDEOH GRXEW¶ DQG
μDEVROXWHFHUWDLQW\¶´)UDQNOLQY/\QDXJK86
2¶&RQQRU-FRQFXUULQJ ,Q6WDWHY0F*XLUH
1(G 2KLR WKH 2KLR 6XSUHPH &RXUW
H[SODLQHG
5HVLGXDORUOLQJHULQJGRXEWDVWRWKHGHIHQGDQW¶VJXLOWRU
LQQRFHQFHLVQRWDIDFWRUUHOHYDQWWRWKHLPSRVLWLRQRIWKH
GHDWK VHQWHQFH EHFDXVH LW KDV QRWKLQJ WR GR ZLWK WKH
QDWXUHDQGFLUFXPVWDQFHVRIWKHRIIHQVHRUWKHKLVWRU\
FKDUDFWHUDQGEDFNJURXQGRIWKHRIIHQGHU
2XU V\VWHP UHTXLUHV WKDW WKH SURVHFXWLRQ SURYH DOO
HOHPHQWV RI D FULPH EH\RQG D UHDVRQDEOH GRXEW
7KHUHIRUH LW LV LOORJLFDO WR ILQG WKDW WKH GHIHQGDQW LV
JXLOW\ EH\RQG D UHDVRQDEOH GRXEW \HW WKHQ GRXEW WKH
FHUWDLQW\RIWKHJXLOW\YHUGLFWE\UHFRPPHQGLQJPHUF\LQ
FDVH D PLVWDNH KDV RFFXUUHG 5HVLGXDO GRXEW FDVWV D
VKDGRZRYHUWKHUHOLDELOLW\DQGFUHGLELOLW\RIRXUOHJDO
V\VWHP LQ WKDW LW DOORZV WKH MXU\ WR VHFRQGJXHVV LWV
YHUGLFWRIJXLOWLQWKHVHSDUDWHSHQDOW\SKDVHRIDPXUGHU
WULDO
5HVLGXDOGRXEWLVQRWDQDFFHSWDEOHPLWLJDWLQJIDFWRU
XQGHU5& % VLQFHLWLVLUUHOHYDQWWRWKHLVVXH
RIZKHWKHUWKHGHIHQGDQWVKRXOGEHVHQWHQFHGWRGHDWK
,GDW HPSKDVLVDGGHG FLWDWLRQVRPLWWHG
:HUHFRJQL]HGLQ0DSHVY&R\OH)G WK&LU
FHUWGHQLHG86
8QGHUWKH2KLRVWDWXWHDFDSLWDOGHIHQGDQWIRXQGJXLOW\
RIDGHDWKVSHFLILFDWLRQKDVWRSUHVHQWVRPHPLWLJDWLQJ
HYLGHQFHLQRUGHUWRDYRLGWKHGHDWKSHQDOW\,IDMXU\KDV
QRWKLQJWRZHLJKDJDLQVWWKHDJJUDYDWLQJFLUFXPVWDQFH
LW DOPRVW FHUWDLQO\ PXVW ILQG WKDW WKH DJJUDYDWLQJ
FLUFXPVWDQFH RXWZHLJKV WKH QRQH[LVWHQW PLWLJDWLQJ
FLUFXPVWDQFHVDQGUHFRPPHQGGHDWK
,GDW

-- 4 of 10 --

&ROHPDQY0LWFKHOO 1R
)LUVW WKH GHIHQGDQW PXVW VKRZ WKDW FRXQVHO¶V
SHUIRUPDQFHZDVGHILFLHQW7KLVUHTXLUHVVKRZLQJWKDW
FRXQVHO PDGH HUURUV VR VHULRXV WKDW FRXQVHO ZDV QRW
IXQFWLRQLQJDVWKH³FRXQVHO´JXDUDQWHHGWKHGHIHQGDQWE\
WKH6L[WK$PHQGPHQW6HFRQGWKHGHIHQGDQWPXVWVKRZ
WKDW WKH GHILFLHQW SHUIRUPDQFH SUHMXGLFHG WKH GHIHQVH
7KLV UHTXLUHV VKRZLQJ WKDW FRXQVHO¶V HUURUV ZHUH VR
VHULRXVDVWRGHSULYHWKHGHIHQGDQWRIDIDLUWULDODWULDO
ZKRVHUHVXOWLVUHOLDEOH
6WULFNODQG86DW
:KHQHODERUDWLQJRQWKH³SUHMXGLFH´SURQJRIWKLVWHVWWKH
6WULFNODQG&RXUWVWDWHG
,W LV QRW HQRXJK IRU WKH GHIHQGDQW WR VKRZ WKDW WKH
HUURUVKDGVRPHFRQFHLYDEOHHIIHFWRQWKHRXWFRPHRIWKH
SURFHHGLQJ9LUWXDOO\HYHU\DFWRURPLVVLRQRIFRXQVHO
ZRXOGPHHWWKDWWHVWDQGQRWHYHU\HUURUWKDWFRQFHLYDEO\
FRXOG KDYH LQIOXHQFHG WKH RXWFRPH XQGHUPLQHV WKH
UHOLDELOLW\RIWKHUHVXOWRIWKHSURFHHGLQJ

>7@KHDSSURSULDWHWHVWIRUSUHMXGLFHILQGVLWVURRWV
LQWKHWHVWIRUPDWHULDOLW\RIH[FXOSDWRU\LQIRUPDWLRQQRW
GLVFORVHGWRWKHGHIHQVHE\WKHSURVHFXWLRQDQGLQWKH
WHVWIRUPDWHULDOLW\RIWHVWLPRQ\PDGHXQDYDLODEOHWRWKH
GHIHQVH E\ *RYHUQPHQW GHSRUWDWLRQ RI D ZLWQHVV 7KH
GHIHQGDQW PXVW VKRZ WKDW WKHUH LV D UHDVRQDEOH
SUREDELOLW\WKDWEXWIRUFRXQVHO¶VXQSURIHVVLRQDOHUURUV
WKHUHVXOWRIWKHSURFHHGLQJZRXOGKDYHEHHQGLIIHUHQW$
UHDVRQDEOH SUREDELOLW\ LV D SUREDELOLW\ VXIILFLHQW WR
XQGHUPLQHFRQILGHQFHLQWKHRXWFRPH
,GDW FLWDWLRQVRPLWWHG
,QWKLVFDVHFRXQVHOSURFHHGHGZLWKDVRFDOOHG³UHVLGXDO
GRXEW WKHRU\´ EHFDXVH &ROHPDQ LQVWUXFWHG KLP WR GR VR
5HVLGXDOGRXEWKDVEHHQGHVFULEHGDVDWKHRU\WKDWFUHDWHV³D
OLQJHULQJXQFHUWDLQW\DERXWIDFWVDVWDWHRIPLQGWKDWH[LVWV
1R &ROHPDQY0LWFKHOO
,,
%HFDXVH&ROHPDQ¶VKDEHDVSHWLWLRQZDVILOHGRQ-DQXDU\
EHIRUHWKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\
$FWRI $('3$ 3XE/1R6WDW
EHFDPHHIIHFWLYHRQ$SULOWKHSUH$('3$
VWDQGDUGRIUHYLHZDSSOLHV6HH86&†
7KLVFRXUWPXVWUHYLHZWKHGLVWULFWFRXUW¶VOHJDOFRQFOXVLRQV
GHQRYRDQGLWVILQGLQJVRIIDFWIRUFOHDUHUURU5LFNPDQY
%HOO )G WK &LU $QG ZH PXVW
GHIHUWRVWDWHFRXUWIDFWXDOILQGLQJVSHUWDLQLQJWRSULPDU\RU
KLVWRULFDOIDFWVZKLFKDUHSUHVXPHGFRUUHFWDQGDUHUHEXWWDEOH
RQO\E\FOHDUDQGFRQYLQFLQJHYLGHQFH6HHLG6WDWHFRXUW
GHWHUPLQDWLRQVRIODZDQGPL[HGTXHVWLRQVRIODZDQGIDFW
VKRXOGEHUHYLHZHGGHQRYR,G
,,,
7KHGLVWULFWFRXUWFRQFOXGHGWKDW&ROHPDQKDGSURFHGXUDOO\
GHIDXOWHGRQRIWKHFODLPVUDLVHGLQKLVKDEHDVSHWLWLRQ
EHFDXVHRIIDLOXUHWRFRPSO\ZLWK2KLR¶VUHVMXGLFDWDGRFWULQH
HVWDEOLVKHGLQ6WDWHY3HUU\1(G 2KLR ,Q
3HUU\WKH2KLR6XSUHPH&RXUWKHOG
8QGHUWKHGRFWULQHRIUHVMXGLFDWDDILQDOMXGJPHQWRI
FRQYLFWLRQEDUVWKHFRQYLFWHGGHIHQGDQWIURPUDLVLQJDQG
OLWLJDWLQJLQDQ\SURFHHGLQJH[FHSWDQDSSHDOIURPWKDW
MXGJPHQWDQ\GHIHQVHRUDQ\FODLPHGODFNRIGXHSURFHVV
WKDW ZDV UDLVHG RU FRXOG KDYH EHHQ UDLVHG E\ WKH
GHIHQGDQWDWWKHWULDOZKLFKUHVXOWHGLQWKDWMXGJPHQWRI
FRQYLFWLRQRURQDQDSSHDOIURPWKDWMXGJPHQW
,GDW HPSKDVLVDGGHG
&ROHPDQFRQWHQGVWKDWHYHQLIKLVFODLPVDUHSURFHGXUDOO\
GHIDXOWHG IRU QRW KDYLQJ EHHQ UDLVHG RQ GLUHFW DSSHDO KLV
GHIDXOW LV ³H[FXVHG´ EHFDXVH KLV DSSHOODWH FRXQVHO ZDV
FRQVWLWXWLRQDOO\ LQHIIHFWLYH IRU IDLOLQJ WR SURSHUO\ UDLVH WKH
LVVXHVLQWKDWDSSHDO&ROHPDQFDQQRWREWDLQIHGHUDOKDEHDV
UHOLHI XQGHU 86& † XQOHVV KH KDV FRPSOHWHO\
H[KDXVWHGKLVDYDLODEOHVWDWHFRXUWUHPHGLHVE\SUHVHQWLQJKLV

-- 5 of 10 --

&ROHPDQY0LWFKHOO 1R
FODLPV WR WKH VWDWH¶V KLJKHVW FRXUW 6HH &ROHPDQ Y
7KRPSVRQ 86 $QG KH FDQQRW
FLUFXPYHQWWKHH[KDXVWLRQUHTXLUHPHQWE\IDLOLQJWRFRPSO\
ZLWK VWDWH SURFHGXUDO UXOHV 6HH LG DW &RPEV Y
&R\OH)G WK&LU FHUWGHQLHG6&W

:KHQ GHWHUPLQLQJ ZKHWKHU D VWDWH SHWLWLRQHU¶V FODLP LV
EDUUHGIURPKDEHDVUHYLHZEDVHGRQSURFHGXUDOGHIDXOWWKLV
FRXUWPXVWORRNWRWKHIROORZLQJIRXUIDFWRUV)LUVWWKHFRXUW
PXVWGHWHUPLQHWKDWWKHUHLVDQDSSOLFDEOHVWDWHSURFHGXUDO
UXOHZLWKZKLFKWKHSHWLWLRQHUIDLOHGWRFRPSO\0DXSLQY
6PLWK)G WK&LU 6HFRQGWKHFRXUW
PXVW GHWHUPLQH WKDW WKH VWDWH UXOH LV RQH WKDW LV ³ILUPO\
HVWDEOLVKHGDQGUHJXODUO\IROORZHG´-RQHVY7RRPEV
)G WK&LU LQWHUQDOTXRWDWLRQPDUNVDQG
FLWDWLRQRPLWWHG 7KLUGWKHFRXUWPXVWGHWHUPLQHWKDWWKH
VWDWHSURFHGXUDOUXOHLVDQ³DGHTXDWHDQGLQGHSHQGHQW´VWDWH
JURXQGRQZKLFKWKHVWDWHPD\UHO\WRIRUHFORVHUHYLHZRIWKH
IHGHUDOFRQVWLWXWLRQDOFODLP0DXSLQ)GDW,IDOO
WKUHHRIWKHVHIDFWRUVDUHPHWWKHSHWLWLRQHUPXVWWKHQVKRZ
WKHUHZDV³FDXVH´IRUWKHGHIDXOWDQG³SUHMXGLFH´UHVXOWLQJ
WKHUHIURPRUWKDWD³PLVFDUULDJHRIMXVWLFH´ZRXOGUHVXOWLI
WKH SURFHGXUDO GHIDXOW ZHUH HQIRUFHG 6HH :DLQZULJKW Y
6\NHV86 $VWDWHSURFHGXUDO
EDUZLOOEHKHOGWREDUIHGHUDOKDEHDVUHYLHZRQO\ZKHQWKH
ODVWUHDVRQHGGHFLVLRQRIWKHVWDWHFRXUWFRQFOXGHGWKDWWKH
FODLPVZHUHEDUUHGE\DVWDWHSURFHGXUDOUXOH6HH+DUULVY
5HHG86 &RXFKY-DEH)G
WK&LU
,Q(GZDUGVY&DUSHQWHU866&W
WKH 8QLWHG 6WDWHV 6XSUHPH &RXUW KHOG WKDW ³DQ
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPDVVHUWHGDVFDXVHIRU
WKH SURFHGXUDO GHIDXOW RI DQRWKHU FODLP FDQ LWVHOI EH
SURFHGXUDOO\ GHIDXOWHG´ ,G DW ,Q WKLV FDVH WKH
SHWLWLRQHU KDV SURFHGXUDOO\ GHIDXOWHG RQ KLV FODLP WKDW KLV
DSSHOODWHFRXQVHOZDVLQHIIHFWLYHEHFDXVHDVZHZLOOH[SODLQ
KHIDLOHGWREULQJWKHFODLPLQDWLPHO\PDQQHUDVUHTXLUHGE\
2KLRODZZKLFKLVLWVHOIDSURFHGXUDOEDU7KHUHIRUHLQRUGHU
1R &ROHPDQY0LWFKHOO
7KH GLVWULFW FRXUW UHMHFWHG HDFK RI &ROHPDQ¶V FODLPV :H
DJUHHWKDWWKHFODLPVUHODWLQJWR2KLR¶VFDSLWDOSXQLVKPHQW
VFKHPH DUH HLWKHU SURFHGXUDOO\ GHIDXOWHG RU DUH ODFNLQJ LQ
PHULWVXEVWDQWLDOO\IRUWKHUHDVRQVJLYHQLQWKHGLVWULFWFRXUW
RSLQLRQ
9,,
&ROHPDQ DOVR FRQWHQGV WKDW KH ZDV GHQLHG WKH HIIHFWLYH
DVVLVWDQFHRIFRXQVHOGXULQJVHQWHQFLQJDVJXDUDQWHHGE\WKH
6L[WK $PHQGPHQW EHFDXVH KLV DWWRUQH\V KDG D GXW\ WR
LQYHVWLJDWH DOO SRVVLEOH PLWLJDWLQJ IDFWRUV LQFOXGLQJ WKRVH
UHODWLQJWR&ROHPDQ¶VPHQWDOKHDOWKEDFNJURXQGDQGFRXQVHO
EUHDFKHG WKLV GXW\ E\ IDLOLQJ WR FRQGXFW D FRPSOHWH
LQGHSHQGHQWLQYHVWLJDWLRQ:HDUHQRWHQWLUHO\FRQYLQFHGWKDW
&ROHPDQSURSHUO\UDLVHGWKLVFODLPRQGLUHFWDSSHDOLQGHHG
ZHDUHLQFOLQHGWRWKLQNWKHFODLPZDVSURFHGXUDOO\GHIDXOWHG
+RZHYHUWKHUHVSRQGHQWVWLSXODWHGWKDW&ROHPDQ³PD\EH
GHHPHGWRKDYHIDLUO\SUHVHQWHG>WKLV@LVVXHLQVWDWHFRXUW´VR
ZHZLOODGGUHVVWKHPHULWVRIWKHFODLP
6SHFLILFDOO\&ROHPDQDOOHJHVIRXUHUURUVFRPPLWWHGE\KLV
FRXQVHODWVHQWHQFLQJ IDLOXUHWRGHPDQGDKHDULQJDQG
GHWHUPLQDWLRQ FRQFHUQLQJ ERWK KLV FRPSHWHQF\ WR ZDLYH
SUHVHQWDWLRQ RI PLWLJDWLRQ HYLGHQFH DQG KLV UHIXVDO WR
FRRSHUDWHZLWKWULDOFRXQVHOLQSURYLGLQJLQIRUPDWLRQIRUDQ
DSSURSULDWHLQYHVWLJDWLRQRIPLWLJDWLQJIDFWRUV IDLOXUHWR
REWDLQ WKH QHFHVVDU\ UHSRUWV DQG HYDOXDWLRQV IURP WKH
DSSURSULDWHH[SHUWVIRUXVHDVHYLGHQFHDWWKHPLWLJDWLRQSKDVH
RI WKH SURFHHGLQJV IDLOXUH WR UDLVH WKH LVVXH RI WKH
FRQVWLWXWLRQDOLPSURSULHW\RI&ROHPDQHIIHFWLYHO\ZDLYLQJWKH
SUHVHQWDWLRQRIPLWLJDWLRQHYLGHQFHDWWKHVHQWHQFLQJSKDVHRI
WKHSURFHHGLQJVDQG IDLOXUHWRUHTXHVWWKHDSSRLQWPHQWRI
DQLQYHVWLJDWRUPLWLJDWLRQVSHFLDOLVWDQGRUSV\FKRORJLVWWR
DVVLVWLQWKHLQYHVWLJDWLRQSUHSDUDWLRQDQGSUHVHQWDWLRQRI
PLWLJDWLQJHYLGHQFH
7RUHSHDWWKH6WULFNODQG&RXUWDUWLFXODWHGWKHIROORZLQJ
WHVWIRUGHWHUPLQLQJWKHHIIHFWLYHQHVVRIFRXQVHO

-- 6 of 10 --

&ROHPDQY0LWFKHOO 1R
WKDWKHZRXOGKDQGFXIIKLVYLFWLPVDQGWKHPDMRULW\RI
KLVDVVDXOWVRQWKHLUSHUVRQVZRXOGRFFXUDIWHUWKH\ZHUH
ERXQGDQGGHIHQVHOHVV,WVKRXOGEHQRWHGWKDWDOORIWKH
YLFWLPVRIRWKHUFULPHVE\WKHGHIHQGDQWZKRWHVWLILHGLQ
WKLVWULDOZHUHHOGHUO\SHRSOHPDQ\RIWKHPIUDLODQG
PRVW DOO RI WKHP LQFDSDEOH RI GHIHQGLQJ WKHPVHOYHV
DJDLQVWWKHGHIHQGDQW¶VDWWDFNDQGPRVWFHUWDLQO\ZKHQ
WKH\ ZHUH DW WKH GLVDGYDQWDJH RI KDYLQJ WKHLU KDQGV
ERXQGZLWKKDQGFXIIVHOHFWULFDOFRUGRUVLPLODUOLJDWXUHV
:HDJUHHZLWKWKHWULDOFRXUWWKDWWKH³RWKHUDFWV´HYLGHQFH
ZDV UHOHYDQW EHFDXVH LW VKRZHG WKDW WKH PHWKRGRORJ\ WKH
NLOOHU XVHG LQ 0UV :DOWHUV¶V GHDWK FORVHO\ UHVHPEOHG WKDW
XVHGLQRWKHUFULPHVFRPPLWWHGE\&ROHPDQDQGWKXVWHQGHG
WR VKRZ WKDW &ROHPDQ ZDV 0UV :DOWHUV¶V NLOOHU
$FFRUGLQJO\ WKH DGPLVVLRQ RI WKH HYLGHQFH ZDV QRW
IXQGDPHQWDOO\ XQIDLU DQG GLG QRW YLRODWH &ROHPDQ¶V GXH
SURFHVVULJKWV
9
&ROHPDQDOOHJHVWKDWWKHGLVWULFWFRXUWHUUHGLQGHQ\LQJKLP
DQ HYLGHQWLDU\ KHDULQJ WR UHH[DPLQH WKH IDFWXDO LVVXHV
UHVROYHGE\WKHVWDWHFRXUWVEHFDXVHKHZDVQHYHUDIIRUGHGWKH
RSSRUWXQLW\WRGHYHORSDQGOLWLJDWHWKHIDFWXDOEDVHVIRUKLV
IHGHUDOFRQVWLWXWLRQDOFODLPV,QDKDEHDVSURFHHGLQJVWDWH
FRXUWILQGLQJVRIIDFWHQMR\DSUHVXPSWLRQRIFRUUHFWQHVV6HH
5LFNPDQ)GDW,QRUGHUIRU&ROHPDQWRSUHYDLO
RQWKLVFODLPKHPXVWUHEXWWKLVSUHVXPSWLRQRIFRUUHFWQHVV
ZLWK FOHDU DQG FRQYLQFLQJ HYLGHQFH 6HH LG 7KH UHFRUG
UHYHDOVWKDW&ROHPDQZDVJLYHQWKHRSSRUWXQLW\WRIXOO\DQG
IDLUO\OLWLJDWHKLVFODLPVLQWKH2KLRFRXUWVDQGIDLOHGWRGRVR
%HFDXVH&ROHPDQKDVGRQHQRWKLQJWRUHEXWWKHSUHVXPSWLRQ
RIFRUUHFWQHVVJLYHQWRWKHIDFWXDOLVVXHVUHVROYHGE\WKHVWDWH
FRXUWKLVGXHSURFHVVULJKWVKDYHQRWEHHQYLRODWHGE\WKH
GHQLDORIDQHYLGHQWLDU\KHDULQJLQWKHIHGHUDOKDEHDVFRXUW
9,
&ROHPDQUDLVHVDQXPEHURIFKDOOHQJHVWR2KLR¶VFDSLWDO
SXQLVKPHQWVFKHPHERWKRQLWVIDFHDQGDVDSSOLHGWRKLVFDVH
1R &ROHPDQY0LWFKHOO
IRU &ROHPDQ WR XVH KLV LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH
FRXQVHO FODLP DV ³FDXVH´ WR H[FXVH KLV RWKHU SURFHGXUDOO\
GHIDXOWHGFODLPVKHPXVWILUVWPHHWWKHFDXVHDQGSUHMXGLFH
VWDQGDUGIRUWKHLQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHO
FODLPLWVHOI:HFRQFOXGHWKDW&ROHPDQKDVQRWFDUULHGWKLV
EXUGHQ
$FFRUGLQJWR&ROHPDQWKHGLVWULFWFRXUWHUUHGLQGHFOLQLQJ
WR FRQVLGHU KLV LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH FRXQVHO
FODLPRQWKHJURXQGWKDWWKHFODLPZDVSURFHGXUDOO\EDUUHG
$V ZH KDYH VDLG WKH 2KLR &RXUW RI $SSHDOV GHQLHG
&ROHPDQ¶V HIIRUW WR KDYH KLV LQHIIHFWLYH DVVLVWDQFH RI
DSSHOODWH FRXQVHO FODLP FRQVLGHUHG LQ KLV DSSOLFDWLRQ IRU
GHOD\HGUHFRQVLGHUDWLRQRIKLVGLUHFWDSSHDO7KH&RXUWRI
$SSHDOVUXOHGWKDWWKHDSSOLFDWLRQZDVXQWLPHO\EHFDXVHLW
ZDVQRWILOHGZLWKLQGD\VRIWKHRULJLQDO&RXUWRI$SSHDOV
GHFLVLRQ DV UHTXLUHG E\ 2KLR $SS 5 % &ROHPDQ
DOOHJHV WKDW KH DVVHUWHG WKH FODLP LQ KLV SHWLWLRQ IRU SRVW
FRQYLFWLRQUHOLHILQWKHVWDWHWULDOFRXUWLQUDWKHUWKDQLQ
DQDSSOLFDWLRQWRUHFRQVLGHUKLVGLUHFWDSSHDOEHFDXVHWKHUH
ZDVQRUHJXODUO\IROORZHGSURFHGXUHLQWKH2KLRFRXUWVIRU
UDLVLQJVXFKFODLPV
,Q)HEUXDU\DIWHUFRQFOXVLRQRIKLVGLUHFWDSSHDOVWR
WKH 2KLR &RXUW RI $SSHDOV DQG 2KLR 6XSUHPH &RXUW DQG
GXULQJWKHSHQGHQF\RI&ROHPDQ¶VDSSHDORIWKHGHQLDORIKLV
SRVWFRQYLFWLRQ SHWLWLRQ WKH 2KLR 6XSUHPH &RXUW GHFLGHG
6WDWH Y 0XUQDKDQ 1(G 2KLR 7KH
0XUQDKDQFRXUWKHOGWKDWLQHIIHFWLYHDVVLVWDQFHRIDSSHOODWH
FRXQVHO FODLPV VKRXOG EH UDLVHG LQ D GHOD\HG PRWLRQ IRU
UHFRQVLGHUDWLRQEHIRUHWKH2KLR&RXUWRI$SSHDOVDQGQRWLQ
DSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHI
&ROHPDQZDLWHGPRQWKVDIWHU0XUQDKDQZDVGHFLGHG
EHIRUH ILOLQJ KLV GHOD\HG PRWLRQ IRU UHFRQVLGHUDWLRQ LQ WKH
&RXUWRI$SSHDOVRQ-XO\DQGWKH&RXUWRI$SSHDOV
GLVPLVVHGWKHDSSOLFDWLRQEHFDXVHLWZDVPRUHWKDQGD\V
DIWHUWKHFRXUW¶VGHFLVLRQDQG&ROHPDQKDGQRWVKRZQ
JRRGFDXVHIRUWKHGHOD\DVUHTXLUHGE\2KLR$SS5 %

-- 7 of 10 --

&ROHPDQY0LWFKHOO 1R
2Q -XO\ 2KLR $SS 5 % ZDV DPHQGHG WR
SURYLGHLQSHUWLQHQWSDUW
% $SSOLFDWLRQIRUUHRSHQLQJ
$ GHIHQGDQW LQ D FULPLQDO FDVH PD\ DSSO\ IRU
UHRSHQLQJRIWKHDSSHDOIURPWKHMXGJPHQWRIFRQYLFWLRQ
DQGVHQWHQFHEDVHGRQDFODLPRILQHIIHFWLYHDVVLVWDQFH
RIDSSHOODWHFRXQVHO$QDSSOLFDWLRQIRUUHRSHQLQJVKDOO
EH ILOHG LQ WKH FRXUW RI DSSHDOV ZKHUH WKH DSSHDO ZDV
GHFLGHG ZLWKLQ QLQHW\ GD\V IURP MRXUQDOL]DWLRQ RI WKH
DSSHOODWH MXGJPHQW XQOHVV WKH DSSOLFDQW VKRZV JRRG
FDXVHIRUILOLQJDWDODWHUWLPH
$QDSSOLFDWLRQIRUUHRSHQLQJVKDOOFRQWDLQDOORI
WKHIROORZLQJ

E $VKRZLQJRIJRRGFDXVHIRUXQWLPHO\ILOLQJLIWKH
DSSOLFDWLRQ LV ILOHG PRUH WKDQ QLQHW\ GD\V DIWHU
MRXUQDOL]DWLRQRIWKHDSSHOODWHMXGJPHQW
2KLR$SS5 %
:KLOH &ROHPDQ¶V DSSOLFDWLRQ ZDV ILOHG SULRU WR WKH
DPHQGPHQW¶VHIIHFWLYHGDWHWKHDPHQGPHQWJRYHUQVIXUWKHU
SURFHHGLQJV LQ SHQGLQJ DFWLRQV XQOHVV LW LV VKRZQ WKDW LWV
DSSOLFDWLRQZRXOGZRUNDQLQMXVWLFH&ROHPDQKDVQRWPDGH
WKLVVKRZLQJ
&ROHPDQDUJXHVWKDWWKHGD\ILOLQJSHULRGWKDWKHPLVVHG
VKRXOGKDYHEHHQ³WROOHG´GXHWRWKHIDFWWKDWWKH2KLR&RXUW
RI $SSHDOV KDG QRW \HW UXOHG RQ KLV SHWLWLRQ IRU SRVW
FRQYLFWLRQ UHOLHI ZKLFK LQFOXGHG D FODLP RI LQHIIHFWLYH
DVVLVWDQFHRIDSSHOODWHFRXQVHO$OWKRXJKKHLVQRWHQWLUHO\
FOHDUDERXWLW&ROHPDQVHHPVWREHDUJXLQJWKHUHZDVQRWD
ILUPO\HVWDEOLVKHGDQGUHJXODUO\IROORZHGSURFHGXUDOUXOHIRU
UDLVLQJLQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOFODLPVLQ
ZKHQ KLV DSSHDO ZDV GHFLGHG LQ WKH 2KLR &RXUW RI
$SSHDOVDQGWKHUHIRUHQR³DGHTXDWHDQGLQGHSHQGHQW´VWDWH
1R &ROHPDQY0LWFKHOO
&ROHPDQFRQWHQGVWKDWWKH³RWKHUDFWV´HYLGHQFHLQWURGXFHG
DWWULDOOLQNLQJKLPWRRWKHUPXUGHUFDVHVYLRODWHGKLVULJKWWR
GXH SURFHVV DQG D IDLU WULDO EHFDXVH WKH HYLGHQFH ZDV
GLVVLPLODUWRWKHFULPHLQYROYLQJ0UV:DOWHUVDQGLUUHOHYDQW
WRWKHLVVXHVRIVFKHPHPRWLYHLQWHQWV\VWHPRUDEVHQFHRI
PLVWDNHRUDFFLGHQW
7KHUHVSRQGHQWDQVZHUVWKDWWKH³RWKHUDFWV´HYLGHQFHZDV
DGPLVVLEOHEHFDXVHRILWVVLPLODULW\WRWKHFDVHLQYROYLQJ0UV
:DOWHUVVLQFHLWVKRZVWKDW&ROHPDQZDVLQYROYHGLQRWKHU
FDVHVLQYROYLQJ HOGHUO\FRXSOHV XVHRIGHFHSWLRQWR
HQWHU WKH YLFWLP¶V KRPH XVH RI KDQGFXIIV XVH RI
HOHFWULFDO FRUGV WR WLH WKH YLFWLP¶V KDQGV DQG IHHW WKH
LQFDSDFLWDWLRQRIWKHYLFWLP¶VWHOHSKRQH WKHWKHIWRIWKH
YLFWLP¶V PRWRU YHKLFOH DQG D FRQVSLUDF\ ZLWK 'HEUD
%URZQ$OWKRXJKWKHUHVSRQGHQW¶VDUJXPHQWLVQRWHQWLUHO\
FOHDU ZH WDNH LW WR EH WKDW WKH ³RWKHU DFWV´ HYLGHQFH ZDV
LQWURGXFHGWRVKRZWKDW0UV:DOWHUV¶VNLOOHUXVHGWKHVDPH
PRGXVRSHUDQGLWKDW&ROHPDQXVHGLQWKHRWKHUNLOOLQJV²KLV
³VLJQDWXUH´VRWRVSHDN²DQGWKHUHIRUHWKDWWKH³RWKHUDFWV´
HYLGHQFH ZDV DGPLVVLEOH DV WHQGLQJ WR SURYH &ROHPDQ¶V
LGHQWLW\DVWKHNLOOHULQWKLVFDVH7KLVLVRIFRXUVHDIDPLOLDU
MXVWLILFDWLRQ IRU WKH LQWURGXFWLRQ RI ³RWKHU DFWV´ HYLGHQFH
SXUVXDQWWR2KLR5HY&RGH$QQ†DQG2KLR(YLG
5 %
%HFDXVHWKLVLVDQDSSHDOIURPDKDEHDVFRUSXVGHFLVLRQ
DQGQRWDQDSSHDORI&ROHPDQ¶VVWDWHFRQYLFWLRQZHGRQRW
SDVVXSRQ³HUURUVLQWKHDSSOLFDWLRQRIVWDWHODZHVSHFLDOO\
UXOLQJVUHJDUGLQJWKHDGPLVVLRQRUH[FOXVLRQRIHYLGHQFH´
&RRSHUY6RZGHUV)G WK&LU $
VWDWHFRXUWHYLGHQWLDU\UXOLQJZLOOEHUHYLHZHGE\DIHGHUDO
KDEHDV FRXUW RQO\ LI LW ZHUH VR IXQGDPHQWDOO\ XQIDLU DV WR
YLRODWHWKHSHWLWLRQHU¶VGXHSURFHVVULJKWV6HH6H\PRXUY
:DONHU)G WK&LU
7KHWULDOFRXUW¶VH[SODQDWLRQIRUWKHDGPLVVLRQRIWKH³RWKHU
DFWV´HYLGHQFHLQFOXGHG
,QPDQ\RIWKHVHRWKHURIIHQVHVWKHHYLGHQFHVKRZHG
WKDWWKHGHIHQGDQWXVHGWKHVDPHPHWKRGRIRSHUDWLRQ

-- 8 of 10 --

&ROHPDQY0LWFKHOO 1R
WKH\KDGEHHQVXSSOLHGWRKLPWKHYHUGLFWZRXOGKDYHEHHQ
WKH VDPH EHFDXVH WKH TXDQWLW\ DQG TXDOLW\ RI WKH HYLGHQFH
LQWURGXFHG WR SURYH &ROHPDQ¶V JXLOW ZDV RYHUZKHOPLQJ
&RQVHTXHQWO\ &ROHPDQ LV XQDEOH WR VKRZ WKDW KH ZDV
³SUHMXGLFHG´E\QRWKDYLQJWKHLQIRUPDWLRQDQGWKHUHLVQR
%UDG\YLRODWLRQ
%
&ROHPDQDOVRFODLPVWKDWKHZDVGHQLHGGXHSURFHVVRIODZ
EHFDXVH WKH VWDWH LQWURGXFHG HYLGHQFH RI ³RWKHU DFWV´
LQFOXGLQJPXUGHUIRUZKLFKKHZDVQRWRQWULDO
³2WKHU DFWV´ HYLGHQFH PD\ EH LQWURGXFHG LQ FHUWDLQ
VLWXDWLRQVSXUVXDQWWR2KLR5HY&RGH$QQ†DQG
2KLR(YLG5 % 6HFWLRQSURYLGHV
,QDQ\FULPLQDOFDVHLQZKLFKWKHGHIHQGDQW¶VPRWLYH
RULQWHQWWKHDEVHQFHRIPLVWDNHRUDFFLGHQWRQKLVSDUW
RUWKHGHIHQGDQW¶VVFKHPHSODQRUV\VWHPLQGRLQJDQ
DFWLVPDWHULDODQ\DFWVRIWKHGHIHQGDQWZKLFKWHQGWR
VKRZ KLV PRWLYH RU LQWHQW WKH DEVHQFH RI PLVWDNH RU
DFFLGHQWRQKLVSDUWRUWKHGHIHQGDQW¶VVFKHPHSODQRU
V\VWHP LQ GRLQJ WKH DFW LQ TXHVWLRQ PD\ EH SURYHG
ZKHWKHU WKH\ DUH FRQWHPSRUDQHRXV ZLWK RU SULRU RU
VXEVHTXHQWWKHUHWRQRWZLWKVWDQGLQJWKDWVXFKSURRIPD\
VKRZRUWHQGWRVKRZWKHFRPPLVVLRQRIDQRWKHUFULPH
E\WKHGHIHQGDQW
2KLR5HY&RGH$QQ†
$QG2KLR(YLG5 % VSHFLILHV
(YLGHQFH RI RWKHU FULPHV ZURQJV RU DFWV LV QRW
DGPLVVLEOHWRSURYHWKHFKDUDFWHURIDSHUVRQLQRUGHUWR
VKRZ WKDW KH DFWHG LQ FRQIRUPLW\ WKHUHZLWK ,W PD\
KRZHYHUEHDGPLVVLEOHIRURWKHUSXUSRVHVVXFKDVSURRI
RI PRWLYH RSSRUWXQLW\ LQWHQW SUHSDUDWLRQ SODQ
NQRZOHGJHLGHQWLW\RUDEVHQFHRIPLVWDNHRUDFFLGHQW
2KLR(YLG5 %
1R &ROHPDQY0LWFKHOO
JURXQG H[LVWHG WR IRUHFORVH UHYLHZ RI WKH IHGHUDO
FRQVWLWXWLRQDOFODLP:HGRQRWILQG&ROHPDQ¶VDUJXPHQW
SHUVXDVLYH
%HIRUHWKH2KLR6XSUHPH&RXUW¶VGHFLVLRQLQ0XUQDKDQLW
ZDVZHOOHVWDEOLVKHGLQWKH2KLR)LUVW$SSHOODWH'LVWULFWWKH
DSSHOODWHGLVWULFWLQZKLFK&ROHPDQ¶VDSSHDOZDVKHDUGWKDW
FODLPVRILQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOZHUHWR
EHUDLVHGLQDGHOD\HGPRWLRQIRUUHFRQVLGHUDWLRQDQGZHUHQRW
FRJQL]DEOHLQVWDWHSRVWFRQYLFWLRQSURFHHGLQJV6HH6WDWHY
5RQH1RV&%:/ 2KLR&W
$SS-XQH XQSXEOLVKHGGLVSRVLWLRQ (YHQDVVXPLQJ
&ROHPDQ ZDV FRQIXVHG E\ WKH SURSHU IRUXP LQ ZKLFK WR
LQLWLDOO\EULQJKLVFODLPKHGRHVQRWH[SODLQZK\KHGLGQRW
DVNWKHFRXUWWRUHPRYHKLVLQHIIHFWLYHDSSHOODWHFRXQVHOFODLP
IURPKLVSRVWFRQYLFWLRQSHWLWLRQZLWKRXWSUHMXGLFHLQRUGHU
WRUDLVHLWLQDWLPHO\PDQQHULQD0XUQDKDQPRWLRQRUZK\
KHZDLWHGPRQWKVDIWHU0XUQDKDQZDVGHFLGHGWRUDLVHWKH
FODLP
:KHQDKDEHDVSHWLWLRQHUKDVIDLOHGWRVKRZFDXVHIRUQRW
DVVHUWLQJKLVLQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOFODLP
SURSHUO\LQWKH2KLRFRXUWVDIHGHUDOFRXUWPD\QRWUHDFKWKH
PHULWVRIWKHKDEHDVFODLPXQOHVVWKHSHWLWLRQHUFDQVKRZWKDW
UHIXVDOWRFRQVLGHUKLVFODLPZRXOGUHVXOWLQDIXQGDPHQWDO
PLVFDUULDJH RI MXVWLFH 7KH IXQGDPHQWDO PLVFDUULDJH RI
MXVWLFHH[FHSWLRQUHTXLUHVDVKRZLQJWKDW³LQOLJKWRIWKHQHZ
HYLGHQFHQRMXURUDFWLQJUHDVRQDEO\ZRXOGKDYHYRWHGWR
ILQGKLPJXLOW\EH\RQGDUHDVRQDEOHGRXEW´6FKOXSY'HOR
86 &ROHPDQ KDV QRW PDGH WKLV
VKRZLQJDQGGRHVQRWFODLPWRKDYHGRQHVR
(YHQ LI &ROHPDQ FRXOG RIIHU DQ DSSURSULDWH H[FXVH IRU
IDLOLQJWREULQJKLVLQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHO
FODLPLQDSURSHUDQGWLPHO\PDQQHUWKHFODLPLVPHULWOHVV
7KH(GZDUGV&RXUWUHFHQWO\UHHPSKDVL]HGWKDW³>Q@RWMXVWDQ\
GHILFLHQF\LQFRXQVHO¶VSHUIRUPDQFH´LVVXIILFLHQWWRH[FXVH
SURFHGXUDO GHIDXOW ³WKH DVVLVWDQFH PXVW KDYH EHHQ VR
LQHIIHFWLYHDVWRYLRODWHWKH)HGHUDO&RQVWLWXWLRQ´(GZDUGV
6 &W DW 7KH SURSHU LQHIIHFWLYH DVVLVWDQFH RI

-- 9 of 10 --

&ROHPDQY0LWFKHOO 1R
FRXQVHO VWDQGDUG ZDV DUWLFXODWHG E\ WKH 8QLWHG 6WDWHV
6XSUHPH&RXUWLQ6WULFNODQGY:DVKLQJWRQ86

)LUVW WKH GHIHQGDQW PXVW VKRZ WKDW FRXQVHO¶V
SHUIRUPDQFHZDVGHILFLHQW7KLVUHTXLUHVVKRZLQJWKDW
FRXQVHO PDGH HUURUV VR VHULRXV WKDW FRXQVHO ZDV QRW
IXQFWLRQLQJDVWKH³FRXQVHO´JXDUDQWHHGWKHGHIHQGDQWE\
WKH6L[WK$PHQGPHQW6HFRQGWKHGHIHQGDQWPXVWVKRZ
WKDW WKH GHILFLHQW SHUIRUPDQFH SUHMXGLFHG WKH GHIHQVH
7KLV UHTXLUHV VKRZLQJ WKDW FRXQVHO¶V HUURUV ZHUH VR
VHULRXVDVWRGHSULYHWKHGHIHQGDQWRIDIDLUWULDODWULDO
ZKRVHUHVXOWLVUHOLDEOH
,GDW
2Q GLUHFW DSSHDO WR WKH 2KLR )LUVW $SSHOODWH 'LVWULFW
&ROHPDQ¶VDSSHOODWHFRXQVHOUDLVHGDVVLJQPHQWVRIHUURU
DQGRQGLUHFWDSSHDOWRWKH2KLR6XSUHPH&RXUWKHDVVHUWHG
DVVLJQPHQWVRIHUURU$IWHUDFDUHIXOUHYLHZRIWKHUHFRUG
ZHDUHLQDJUHHPHQWZLWKWKHGLVWULFWFRXUWWKDW&ROHPDQ¶V
DSSHOODWH FRXQVHO ZDV QRW GHILFLHQW IRU UHIXVLQJ WR UDLVH
DSSUR[LPDWHO\ DGGLWLRQDO FODLPV DV &ROHPDQ VXJJHVWV
&ROHPDQ GRHV QRW KDYH D FRQVWLWXWLRQDO ULJKW WR KDYH KLV
FRXQVHO SUHVV QRQIULYRORXV SRLQWV LI FRXQVHO GHFLGHV DV D
PDWWHURISURIHVVLRQDOMXGJPHQWQRWWRSUHVVWKRVHSRLQWV6HH
-RQHVY%DUQHV86
,QFRQFOXVLRQEHFDXVH&ROHPDQ¶VLQHIIHFWLYHDVVLVWDQFHRI
DSSHOODWHFRXQVHOFODLPLVLWVHOISURFHGXUDOO\GHIDXOWHGDQGKH
KDV QRW VKRZQ ³FDXVH DQG SUHMXGLFH´ IRU WKDW GHIDXOW
&ROHPDQ¶V LQHIIHFWLYH DVVLVWDQFH FODLP FDQQRW VHUYH DV
³FDXVH´WRH[FXVHKLVSURFHGXUDOO\GHIDXOWHGFODLPV
,9
&ROHPDQ QH[W FODLPV WKDW KLV GXH SURFHVV ULJKWV ZHUH
YLRODWHGGXHWRPLVFRQGXFWE\WKHSURVHFXWRU
1R &ROHPDQY0LWFKHOO
$
6SHFLILFDOO\&ROHPDQDUJXHVWKDWWKHSURVHFXWLRQIDLOHGWR
GLVFORVH WKH H[LVWHQFH RI WKH IROORZLQJ DQ LQWHUYLHZ
FRQGXFWHGE\WKH)HGHUDO%XUHDXRI,QYHVWLJDWLRQ )%, RQ
-XO\ LWHPVVHL]HGE\WKH)%,IURP&ROHPDQ¶V
JUDQGPRWKHU¶VKRPH WKHLGHQWLW\RI/LQQUR\%RWWRVRQ
ZKR DOOHJHGO\ NQHZ RI &ROHPDQ¶V ZKHUHDERXWV
&ROHPDQ¶V DOOHJHG HIIRUWV WR VXUUHQGHU WKH
SURVHFXWLRQ¶VLQWHQWLRQWRSHUVXDGH'HEUD%URZQWRFRRSHUDWH
ZLWK WKHP DQ\ H[FXOSDWRU\ HYLGHQFH FRQFHUQLQJ RU
UHODWLQJ WR &ROHPDQ SV\FKRORJLFDO SV\FKLDWULF DQGRU
PHGLFDO SURILOHV UHSRUWV HYDOXDWLRQV DQG VXPPDULHV
FRQFHUQLQJ &ROHPDQ DQGRU %URZQ EDFNJURXQG ILOHV
UHSRUWV LQIRUPDWLRQ DQG VXPPDULHV FRQFHUQLQJ &ROHPDQ
DQGRUPHPEHUVRIKLVIDPLO\ EDFNJURXQGLQIRUPDWLRQ
UHJDUGLQJ &ROHPDQ DQG DQ\ PLWLJDWLQJ HYLGHQFH
FRQFHUQLQJ&ROHPDQ:HDJUHHZLWKWKHGLVWULFWFRXUWWKDW
&ROHPDQSURFHGXUDOO\GHIDXOWHGRQDQ\FODLPUHODWHGWRWKH
VHYHQWKLWHPEHFDXVHKHIDLOHGWRUDLVHLWRQGLUHFWDSSHDODQG
WKHVWDWHFRXUWGLGQRWFRQVLGHULWZKHQUXOLQJRQ&ROHPDQ¶V
SRVWFRQYLFWLRQSHWLWLRQ
,Q%UDG\Y0DU\ODQG86 WKH6XSUHPH
&RXUW KHOG WKDW ³WKH VXSSUHVVLRQ E\ WKH SURVHFXWLRQ RI
HYLGHQFHIDYRUDEOHWRDQDFFXVHGXSRQUHTXHVWYLRODWHVGXH
SURFHVVZKHUHWKHHYLGHQFHLVPDWHULDOHLWKHUWRJXLOWRUWR
SXQLVKPHQWLUUHVSHFWLYHRIWKHJRRGIDLWKRUEDGIDLWKRIWKH
SURVHFXWLRQ´ ,G DW ³>7@KHUH LV QHYHU D UHDO μ%UDG\
YLRODWLRQ¶XQOHVVWKHQRQGLVFORVXUHZDVVRVHULRXVWKDWWKHUH
LVDUHDVRQDEOHSUREDELOLW\WKDWWKHVXSSUHVVHGHYLGHQFHZRXOG
KDYHSURGXFHGDGLIIHUHQWYHUGLFW´6WULFNOHUY*UHHQH
86 )XUWKHUPRUH WKHUH LV QR %UDG\
YLRODWLRQLIWKHGHIHQGDQWNQHZRUVKRXOGKDYHNQRZQWKH
HVVHQWLDOIDFWVQHFHVVDU\WRREWDLQWKHLQIRUPDWLRQLQTXHVWLRQ
6HH &RH Y %HOO )G WK &LU FHUW
GHQLHG86
:LWKRXWGHFLGLQJWKDWWKHLWHPVGHVFULEHGE\&ROHPDQZHUH
ZLWKKHOGIURPKLPDVKHDOOHJHVZHDUHVDWLVILHGWKDWHYHQLI

-- 10 of 10 --

Continue your research in ChatGPT or Claude

Connect Omnilex to search the legal corpus from your AI assistant.