01a0126p.06

0DUFKY/HYLQHHWDO 1RV
(
*LYHQRXUDIILUPDQFHRIWKHGLVWULFWFRXUW¶VUXOLQJVZHQHHG
QRWUHDFKWKHLVVXHVUDLVHGLQ0DUFK¶VFURVVDSSHDO
,,,
7KHGLVWULFWFRXUW¶VRUGHUWKDWWKHFKLOGUHQEHLPPHGLDWHO\
UHWXUQHGWRWKHLUIDWKHULQ0H[LFRLV$)),50('DQGRXU
SULRURUGHULVVXLQJDVWD\RIWKHGLVWULFWFRXUW¶VRUGHUSHQGLQJ
UHVROXWLRQRIWKHVHDSSHDOVLV9$&$7('%HFDXVH6DPVRQ
DQG7]LSRUDKDYHEHHQVHSDUDWHGIURPWKHLUIDWKHUIRUDOPRVW
RQH \HDU QRZ ZH IXUWKHU RUGHU WKDW RXU PDQGDWH LVVXH
IRUWKZLWK SXUVXDQW WR )HG 5 $SS 3 D DQG WKDW WKH
GLVWULFW FRXUW WDNH DSSURSULDWH DFWLRQ WR HQVXUH WKDW WKH
FKLOGUHQDUHUHXQLWHGZLWKWKHLUIDWKHUZLWKDOOGXHVSHHG

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
3(55< $ 0$5&+LQKLV
FDSDFLW\DVIDWKHURI6$0621
/(2 0$5&+DQG7=,325$
-26(77( 0$5&+ERWKPLQRU
FKLOGUHQ
3HWLWLRQHU$SSHOOHH
&URVV$SSHOODQW
Y
/$:5(1&( ( /(9,1(
&$52/<1 5 /(9,1(
5HVSRQGHQWV$SSHOODQWV
&URVV$SSHOOHHV
;!

1
1RV
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH
1R²$OHWD$7UDXJHU'LVWULFW-XGJH
$UJXHG0DUFK
'HFLGHGDQG)LOHG$SULO

-- 1 of 10 --

0DUFKY/HYLQHHWDO 1RV
7KH +RQRUDEOH 3DWULFLD $ *DXJKDQ 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU
WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
%HIRUH.(11('<DQG68+5+(,15,&+&LUFXLW
-XGJHV*$8*+$1'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('0DUN+/HYLQH/RV$QJHOHV&DOLIRUQLDIRU
$SSHOODQWV -RKQ ( +HUELVRQ 1DVKYLOOH 7HQQHVVHH IRU
$SSHOOHH 21 %5,() 0DUN + /HYLQH /RV $QJHOHV
&DOLIRUQLD*UHJRU\'6PLWK-DPHV*0DUWLQ,,,67,7(6
+$5%,6211DVKYLOOH7HQQHVVHHIRU$SSHOODQWV-RKQ
(+HUELVRQ1DVKYLOOH7HQQHVVHH5REHUW6&DW]1DVKYLOOH
7HQQHVVHHIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
68+5+(,15,&+&LUFXLW-XGJH7KLVDSSHDOLQYROYHVWKH
,QWHUQDWLRQDO&KLOG$EGXFWLRQ5HPHGLHV$FW ³,&$5$´
86&†† ZKLFKLVDFRGLILFDWLRQRIWKH
+DJXH&RQYHQWLRQRQWKH&LYLO$VSHFWVRI,QWHUQDWLRQDO&KLOG
$EGXFWLRQRSHQHGIRUVLJQDWXUH2FW7,$61R
8176)HG5HJ DSS
% 0DUFK KHUHLQDIWHU³+DJXH&RQYHQWLRQ´ 7KH
+DJXH&RQYHQWLRQZDVDGRSWHGE\WKHVLJQDWRU\QDWLRQV³WR
SURWHFWFKLOGUHQLQWHUQDWLRQDOO\IURPWKHKDUPIXOHIIHFWVRI
WKHLU ZURQJIXO UHPRYDO RU UHWHQWLRQ DQG WR HVWDEOLVK
SURFHGXUHVWRHQVXUHWKHLUSURPSWUHWXUQWRWKH6WDWHRIWKHLU
KDELWXDOUHVLGHQFHDVZHOODVWRVHFXUHSURWHFWLRQIRUULJKWVRI
DFFHVV´+DJXH&RQYHQWLRQSPEO
8QGHU WKH ,&$5$ D SHWLWLRQHU PXVW HVWDEOLVK E\ D
SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW KLV FKLOGUHQ ZHUH
ZURQJIXOO\ UHPRYHG RU UHWDLQHG LQ EUHDFK RI KLV FXVWRG\
1RV 0DUFKY/HYLQHHWDO
SURYLGHVDJHQHURXVDXWKHQWLFDWLRQUXOH86&†
³>1@RDXWKHQWLFDWLRQRIVXFKDSSOLFDWLRQSHWLWLRQGRFXPHQW
RULQIRUPDWLRQVKDOOEHUHTXLUHGLQRUGHUIRUWKHDSSOLFDWLRQ
SHWLWLRQ GRFXPHQW RU LQIRUPDWLRQ WR EH DGPLVVLEOH LQ
FRXUW´ 6XFK D SURYLVLRQ VHUYHV WR H[SHGLWH UXOLQJV RQ
SHWLWLRQV IRU UHWXUQ RI FKLOGUHQ ZURQJIXOO\ UHPRYHG DQG
UHWDLQHG([SHGLWLRXVUXOLQJVDUHFULWLFDOWRHQVXUHWKDWWKH
SXUSRVHRIWKHWUHDW\±SURPSWUHWXUQRIZURQJIXOO\UHPRYHG
RUUHWDLQHGFKLOGUHQ±LVIXOILOOHG+DJXH&RQYHQWLRQDUW.
:HIXUWKHUQRWHWKDWFRXUWVLQRWKHU&RQWUDFWLQJ6WDWHVWR
WKHWUHDW\KDYHDOVRXSKHOGVXPPDU\SURFHHGLQJVRQUHYLHZ
)RU H[DPSOH DQ $XVWUDOLDQ FRXUW KDV KHOG WKDW WKH
&RQYHQWLRQ¶V SULPDU\ SXUSRVH ³LV WR SURYLGH D VXPPDU\
SURFHGXUHIRUWKHUHVROXWLRQRIWKHSURFHHGLQJVDQGZKHUH
DSSURSULDWHDVSHHG\UHWXUQ>RIFKLOGUHQ@WRWKHFRXQWU\RI
WKHLUKDELWXDOUHVLGHQFH´,QWKH0DUULDJHRI*D]L
) D P / 5 ˆ D Y D L O D E O H D W
K W W S V F D O H W H [ W O D Z J R Y D X K W P O I D P G H F
)0KWP ODVWYLVLWHG0DUFK 7KH$XVWUDOLDQ
FRXUWWKHUHIRUHUXOHGWKDWWKHWULDOFRXUW³SURSHUO\DGRSWHGD
VXPPDU\ IRUP RI SURFHGXUH´ ,G RSLQLQJ WKDW DOORZLQJ
FURVVH[DPLQDWLRQ RI GHSRQHQWV RI DIILGDYLWV PD\ EH
DSSURSULDWHLQUDUHFDVHVQRWLQJWKDWLWZDVDSSDUHQWWKDWWKH
WULDO FRXUW KDG FRQVLGHUHG DOO UHOHYDQW PDWHULDO EHIRUH LW
LQFOXGLQJDIILGDYLWV
)LQDOO\ZHQRWHWKDWDOWKRXJKWKHGLVWULFWFRXUWUXOHGWKDWLW
ZRXOG GHFLGH WKH PRWLRQV EHIRUH LW ZLWKRXW GLVFRYHU\ LW
QRQHWKHOHVVHQWHUHGDYROXPLQRXVDPRXQWRIHYLGHQFHLQWRWKH
UHFRUGIURPERWKSDUWLHV,QGHHGRYHUSDJHVZHUHILOHG
ZLWKWKHGLVWULFWFRXUWDQGPDGHSDUWRIWKHUHFRUGRQDSSHDO
0RUHRYHUUHYLHZRIWKHGLVWULFWFRXUW¶VRSLQLRQUHYHDOVWKDW
WKH FRXUW FDUHIXOO\ FRQVLGHUHG WKH HYLGHQFH ERWK SDUWLHV
RIIHUHG DQG LQGHSHQGHQWO\ VRXJKW LQIRUPDWLRQ RQ LWV RZQ
YROLWLRQ,QVXPJLYHQWKHXQLTXHQDWXUHRIWKLVWUHDW\ZH
KROGWKDWWKHGLVWULFWFRXUWGLGQRWDEXVHLWVGLVFUHWLRQZKHQLW
JUDQWHG VXPPDU\ MXGJPHQW LQ IDYRU RI 0DUFK SULRU WR
GLVFRYHU\RUDQHYLGHQWLDU\KHDULQJ

-- 2 of 10 --

0DUFKY/HYLQHHWDO 1RV
$FFRUGLQJ WR WKH /HJDO $QDO\VLV RI WKH +DJXH &RQYHQWLRQ SUHSDUHG
E\ WKH 'HSDUWPHQW RI 6WDWH WKH 3HUH]9HUD 5HSRUW ³LV UHFRJQL]HG DV
WKH RIILFLDO KLVWRU\ DQG FRPPHQWDU\ RQ WKH &RQYHQWLRQ DQG LV D VRXUFH RI
EDFNJURXQG RQ WKH PHDQLQJ RI WKH SURYLVLRQV RI WKH &RQYHQWLRQ´ /HJDO
$QDO\VLV RI WKH +DJXH &RQYHQWLRQ RQ WKH &LYLO $VSHFWV RI ,QWHUQDWLRQDO
&KLOG $EGXFWLRQ )HG 5HJ 0DUFK VHH DOVR
:KDOORQ Y /\QQ )G Q VW &LU
WUHDW\UHTXLUHVQRWRQO\H[SHGLWLRXVDFWLRQE\FRXUWVXQGHU
DUWLFOHDVWKHGLVWULFWFRXUWSURSHUO\QRWHGEXWXVHRI³WKH
PRVWH[SHGLWLRXVSURFHGXUHVDYDLODEOH´+DJXH&RQYHQWLRQ
DUW ,QGHHG WKH GUDIWHUV RI WKH WUHDW\ VWUHVVHG WKH
HPHUJHQF\ QDWXUH RI WKHVH FDVHV ³,WV QDWXUH LV RQH RI
HPHUJHQF\EHFDXVHLWVHHNVDVSHHG\DQGLPPHGLDWHVROXWLRQ
WR WKH FDVHV LQYROYHG´ (OLVD 3pUH]9HUD 5HSRUW RI WKH
6SHFLDO &RPPLVVLRQ LQ $FWHV HW GRFXPHQWV GH OD
4XDWRU]LHPH6HVVLRQˆ 3HUPDQHQW%XUHDXRIWKH
+DJXH&RQIHUHQFHRQ3ULYDWH,QWHUQDWLRQDO/DZHGDQGWUDQV
RIILFLDO(QJOLVKWUDQVODWLRQ
,QDGGLWLRQWRWKHUHTXLUHPHQWRI H[SHGLWLRXVDFWLRQWKH
WUHDW\KDVDQXPEHURISURYLVLRQVWRKHOSHQVXUHWKDWUHWXUQ
SURFHHGLQJVDUHKDQGOHGLQVXFKDPDQQHUDQGWKDWUHWXUQRI
FKLOGUHQWRWKHLUFRXQWU\RIKDELWXDOUHVLGHQFHLVOLNHO\)RU
H[DPSOH WKH WUHDW\ VHWV IRUWK JHQHURXV UXOHV UHJDUGLQJ
DXWKHQWLFDWLRQ RI GRFXPHQWV DQG MXGLFLDO QRWLFH +DJXH
&RQYHQWLRQ DUW 7KH WUHDW\ IXUWKHU SURYLGHV ULJKWV WR
SHWLWLRQHUVZKHQDGHFLVLRQLVQRWUHQGHUHGZLWKLQDPHUHVL[
ZHHNV RI ILOLQJ WKHLU SHWLWLRQ +DJXH &RQYHQWLRQ DUW
,PSRUWDQWO\WKHWUHDW\DOVRSURYLGHVWKDWDFRXUWPD\RUGHU
UHWXUQRIDFKLOGDWDQ\WLPHQRWZLWKVWDQGLQJSURRIRIWUHDW\
GHIHQVHV+DJXH&RQYHQWLRQDUW ³7KHSURYLVLRQVRIWKLV
&KDSWHU >SHUWDLQLQJ WR UHWXUQ RI FKLOGUHQ@ GR QRW OLPLW WKH
SRZHURIDMXGLFLDORUDGPLQLVWUDWLYHDXWKRULW\WRRUGHUWKH
UHWXUQRIWKHFKLOGDWDQ\WLPH´
/LNHZLVHWKH,&$5$UHSHDWHGO\XVHVWKHZRUG³SURPSW´WR
GHVFULEHWKHQDWXUHRISURFHHGLQJVIRUWKHUHWXUQRIDFKLOG
ZURQJIXOO\UHPRYHGRUUHWDLQHG86&† D
/LNH WKH WUHDW\ LWVHOI WKH LPSOHPHQWLQJ OHJLVODWLRQ DOVR
1RV 0DUFKY/HYLQHHWDO
7KLV H[FHSWLRQ SURYLGHV WKDW D FRXUW LV QRW ERXQG WR UHWXUQ D FKLOG LI
WKH SHUVRQ RSSRVLQJ UHWXUQ HVWDEOLVKHV WKDW ³WKHUH LV D JUDYH ULVN WKDW KLV
RU KHU UHWXUQ ZRXOG H[SRVH WKH FKLOG WR SK\VLFDO RU SV\FKRORJLFDO KDUP RU
RWKHUZLVH SODFH WKH FKLOG LQ DQ LQWROHUDEOH VLWXDWLRQ´ +DJXH &RQYHQWLRQ
DUW E
7KLV SURYLVLRQ VWDWHV WKDW UHWXUQ RI D FKLOG ³PD\ EH UHIXVHG LI WKLV
ZRXOG QRW EH SHUPLWWHG E\ WKH IXQGDPHQWDO SULQFLSOHV RI WKH UHTXHVWHG
6WDWH UHODWLQJ WR WKH SURWHFWLRQ RI KXPDQ ULJKWV DQG IXQGDPHQWDO
IUHHGRPV´ +DJXH &RQYHQWLRQ DUW
ULJKWVXQGHUWKHODZVRIWKH&RQWUDFWLQJ6WDWHLQZKLFKWKH
FKLOGUHQ KDELWXDOO\ UHVLGHG EHIRUH WKH\ ZHUH UHPRYHG RU
UHWDLQHG +DJXH &RQYHQWLRQ DUWV 86&
† H $ 2QFH ZURQJIXO UHPRYDO LV VKRZQ WKH
FKLOGUHQ PXVW EH UHWXUQHG +DJXH &RQYHQWLRQ DUW
+RZHYHUDFRXUWLVQRWERXQGWRRUGHUUHWXUQRIWKHFKLOGUHQ
LI WKH UHVSRQGHQWV HVWDEOLVK FHUWDLQ H[FHSWLRQV XQGHU WKH
WUHDW\+DJXH&RQYHQWLRQDUW7KH,&$5$UHTXLUHVWKDW
DUHVSRQGHQWHVWDEOLVKE\FOHDUDQGFRQYLQFLQJHYLGHQFHWKH
JUDYH ULVN RI KDUP H[FHSWLRQ XQGHU DUWLFOH E DQG WKH
SURWHFWLRQRIIXQGDPHQWDOIUHHGRPSURYLVLRQRIDUWLFOH
86& † H $ 1RWZLWKVWDQGLQJ WKHVH
H[FHSWLRQVWKHWUHDW\IXUWKHUSURYLGHVWKDW³>W@KHSURYLVLRQV
RIWKLV&KDSWHU>SHUWDLQLQJWRUHWXUQRIFKLOGUHQ@GRQRWOLPLW
WKHSRZHURIDMXGLFLDORUDGPLQLVWUDWLYHDXWKRULW\WRRUGHUWKH
UHWXUQRIWKHFKLOGDWDQ\WLPH´+DJXH&RQYHQWLRQDUW
HPSKDVLVDGGHG
5HVSRQGHQWV/DZUHQFH(/HYLQHDQG&DURO\Q5/HYLQH
³WKH/HYLQHV´ WKHJUDQGSDUHQWVRIWZRPLQRUV6DPVRQ/HR
0DUFKDQG7]LSRUD-RVHWWH0DUFKDSSHDOWKHRUGHUHQWHUHGE\
WKH GLVWULFW FRXUW LQ WKLV DFWLRQ XQGHU WKH ,&$5$ DQG WKH
+DJXH&RQYHQWLRQZKLFKGLUHFWHGWKH/HYLQHVWRLPPHGLDWHO\
UHWXUQ WKH WZR PLQRU FKLOGUHQ WR WKHLU IDWKHU LQ 0H[LFR
3HWLWLRQHU3HUU\$0DUFK ³0DUFK´ WKHELRORJLFDOIDWKHURI
6DPVRQ DQG 7]LSRUD FURVVDSSHDOV SRUWLRQV RI WKH RUGHU
GHFLGHGDGYHUVHO\WRKLP:H$)),50WKHGLVWULFWFRXUW¶V
RUGHU DGRSWLQJ LWV ZHOOUHDVRQHG RSLQLRQ 6HH 0DUFK Y

-- 3 of 10 --

0DUFKY/HYLQHHWDO 1RV
7KLV LV DFNQRZOHGJHG E\ WKH /HYLQHV )LQDO %U RQ %HKDOI RI
$SSHOODQWV DW
/HYLQH BBB ) 6XSS G BBB 1R 0' 7HQQ
2FW
,
7KLV FDVH LQYROYHV DQ $PHULFDQ IDWKHU ZKR PRYHG WR
0H[LFR ZLWK KLV WZR ELRORJLFDO FKLOGUHQ RI ZKRP KH KDG
FXVWRG\ ,W DOVR LQYROYHV WZR $PHULFDQ PDWHUQDO
JUDQGSDUHQWV ZKR REWDLQHG FRXUWRUGHUHG YLVLWDWLRQ ULJKWV
WKHQUHPRYHGWKHFKLOGUHQIURP0H[LFRDQGUHWXUQHGZLWK
WKHPWRWKH8QLWHG6WDWHVDQGWKHQUHWDLQHGWKHPDIWHUWKH
HQGRIWKHFRXUWRUGHUHGYLVLWDWLRQ7KHIDWKHUVHHNVUHWXUQRI
KLVFKLOGUHQXQGHUWKH,&$5$DQGWKH+DJXH&RQYHQWLRQ
7KHPRWKHURIWKHFKLOGUHQGLVDSSHDUHGLQDQGKHU
SDUHQWV WKH /HYLQHV EHOLHYH VKH ZDV PXUGHUHG E\ KHU
KXVEDQG0DUFK7KLVLVWKHEDVLVIRUWKH/HYLQHV¶IHUYHQW
EHOLHI WKDW 0DUFK VKRXOG QRW KDYH FXVWRG\ RI WKHLU
JUDQGFKLOGUHQ+RZHYHUWKHUHKDYHDOVREHHQDOOHJDWLRQVWKDW
WKH PDWHUQDO JUDQGIDWKHU 0U /HYLQH NLOOHG KLV RZQ
GDXJKWHU0DUFKKDVQRWEHHQFKDUJHGQRUDSSDUHQWO\KDV
DQ\RQH HOVH KDV EHHQ FKDUJHG ZLWK WKH PXUGHU RI WKH
FKLOGUHQ¶VPRWKHU7KH/HYLQHVZHUHQHYHUWKHOHVVVXFFHVVIXO
LQ REWDLQLQJ D GHIDXOW MXGJPHQW DV D GLVFRYHU\ VDQFWLRQ
DJDLQVW0DUFKLQDZURQJIXOGHDWKDFWLRQZKLFKKHOGWKDWKH
NLOOHG KLV ZLIH 0DUFK YHKHPHQWO\ REMHFWV WR EHLQJ
FKDUDFWHUL]HGDVDNLOOHUDQGDVVHUWVWKDWKLVZLIHGLVDSSHDUHG
DEDQGRQLQJKLPDQGWKHFKLOGUHQ
$GGLWLRQDOIDFWVDUHVHWIRUWKLQWKHGLVWULFWFRXUW¶VRSLQLRQ
0DUFKBBB)6XSSGDWBBB1R
2QRUDERXW-XQHWKH/HYLQHVDUULYHGLQ-DOLVFR
0H[LFRWRYLVLWWKH0DUFKFKLOGUHQSXUVXDQWWRDQH[SDUWH
1RV 0DUFKY/HYLQHHWDO
RUDOWHVWLPRQ\RURQDIILGDYLWV)HG5&LY3 H +HUH
WKHFRXUWSURSHUO\HOHFWHGWKHODWWHU
+RZHYHUWKHVHDUHQRWWKHRQO\FRQFHUQVDWLVVXHLQWKLV
FDVH $V WKH GLVWULFW FRXUW SURSHUO\ REVHUYHG WKH +DJXH
&RQYHQWLRQDQGWKH,&$5$UDLVHXQLTXHFRQFHUQV
>7@KLV W\SH RI FDVH LV DSSURSULDWH IRU UHVROXWLRQ E\
VXPPDU\ MXGJPHQW ,QGHHG WKH ODQJXDJH RI WKH
&RQYHQWLRQVXSSRUWVUHVROXWLRQE\VXFKPHDQV$UWLFOH
SURYLGHVWKDWDFRXUWZKHQIDFHGZLWKDSHWLWLRQXQGHU
WKH&RQYHQWLRQVKRXOG³DFWH[SHGLWLRXVO\LQSURFHHGLQJV
IRU WKH UHWXUQ RI FKLOGUHQ´ &RXUWV DUH WR SODFH WKHVH
FDVHV RQ D ³IDVW WUDFN´ LQ RUGHU WR H[SHGLWH WKHVH
SURFHHGLQJV DQG FDUU\ RXW WKH SXUSRVHV RI WKH
&RQYHQWLRQ
7KHODQJXDJHRIWKH&RQYHQWLRQDOVRDXWKRUL]HVFRXUWV
WR³WDNHQRWLFHGLUHFWO\RIWKHODZRIDQGRIMXGLFLDODQG
DGPLQLVWUDWLYHGHFLVLRQVIRUPDOO\UHFRJQL]HGRUQRWLQ
WKH6WDWHRIWKHKDELWXDOUHVLGHQFHRIWKHFKLOGZLWKRXW
UHFRXUVHWRWKHVSHFLILFSURFHGXUHVIRUWKHSURRIRIWKDW
ODZ RU IRU WKH UHFRJQLWLRQ RI IRUHLJQ GHFLVLRQV ZKLFK
ZRXOGRWKHUZLVHEHDSSOLFDEOH´
7KHUHLVQRUHTXLUHPHQWXQGHUWKH+DJXH&RQYHQWLRQ
RUXQGHUWKH,&$5$WKDWGLVFRYHU\EHDOORZHGRUWKDWDQ
HYLGHQWLDU\ KHDULQJ EH FRQGXFWHG 7KXV XQGHU WKH
JXLGDQFHRIWKH&RQYHQWLRQDQGWKHVWDWXWRU\VFKHPHWKH
FRXUWLVJLYHQWKHDXWKRULW\WRUHVROYHWKHVHFDVHVZLWKRXW
UHVRUWLQJ WR D IXOO WULDO RQ WKH PHULWV RU D SOHQDU\
HYLGHQWLDU\KHDULQJ
0DUFK BBB ) 6XSS G DW BBB 1R DW
FLWDWLRQVRPLWWHG
:HDJUHH7KHSHWLWLRQIRUUHWXUQRIFKLOGUHQDWLVVXHKHUH
LVQRWDUXQRIWKHPLOOFDVHWKDWIDOOVZLWKLQWKHJHQHUDOUXOH
VR WKDW LW PD\ EH VDLG WKDW WKH GLVWULFW FRXUW DEXVHG LWV
GLVFUHWLRQ 5DWKHU WKLV FDVH LQYROYHV D SHWLWLRQ XQGHU D
XQLTXH WUHDW\ DQG LWV LPSOHPHQWLQJ OHJLVODWLRQ QHLWKHU RI
ZKLFKH[SUHVVO\UHTXLUHVDKHDULQJRUGLVFRYHU\,QIDFWWKH

-- 4 of 10 --

0DUFKY/HYLQHHWDO 1RV
EHFDXVH WKH SODLQWLIIV GLG QRW FRPSO\ ZLWK WKH UHTXLUHPHQWV RI WKH UXOH
7KH SODLQ ODQJXDJH RI 5XOH I UHTXLUHV DQ DIILGDYLW WKDW ³WKH SDUW\
FDQQRW IRU UHDVRQV VWDWHG SUHVHQW E\ DIILGDYLW IDFWV HVVHQWLDO WR MXVWLI\ WKH
SDUW\¶V RSSRVLWLRQ´ )HG 5 &LY 3 I 7KH /HYLQHV GLG QRW ILOH D
5XOH I DIILGDYLW 7KH\ ILOHG D PRWLRQ IRU GLVFRYHU\ 0RUHRYHU
DOWKRXJK WKHLU PRWLRQ FRQWDLQHG D VWDWHPHQW WKDW LW ZDV VLJQHG DQG YHULILHG
E\ WKH /HYLQHV ³DV DQ DIILGDYLW´ WKH /HYLQHV GLG QRW VLJQ WKH GRFXPHQW
7KXV LI 5XOH I UHTXLUHV DQ DIILGDYLW WKDW H[SODLQV ZK\ WKH SDUW\
³FDQQRW IRU UHDVRQV VWDWHG SUHVHQW E\ DIILGDYLW IDFWV HVVHQWLDO WR MXVWLI\ WKH
SDUW\¶V RSSRVLWLRQ´ WKH /HYLQHV¶ DUJXPHQW DERXW GLVFRYHU\ DV LW SHUWDLQV
WR WKH LVVXH RI KDELWXDO UHVLGHQFH LV QRW SUHVHUYHG IRU UHYLHZ
1HYHUWKHOHVV EHFDXVH ZH DUH FRQVWUDLQHG WR IROORZ 9DQFH ZH DVVXPH WKH
PRWLRQ WKH /HYLQHV ILOHG LV VXIILFLHQW WR SUHVHUYH WKLV LVVXH IRU UHYLHZ
D PRWLRQ 1HYHUWKHOHVV WKH /HYLQHV¶ PRWLRQ VRXJKW
GLVFRYHU\RQO\WRGHYHORSSURRIUHJDUGLQJWKHQDUURZLVVXHRI
WKH FKLOGUHQ¶V KDELWXDO UHVLGHQFH QRW DQ\ RI WKH WUHDW\
H[FHSWLRQV WR UHWXUQ RI WKH FKLOGUHQ RU DQ\ RWKHU LVVXH
7KHUHIRUHZHUHYLHZWKHLVVXHUDLVHGRQO\DVLWSHUWDLQVWR
WKHLUGLVFRYHU\UHTXHVW
³7KHJHQHUDOUXOHLVWKDWVXPPDU\MXGJPHQWLVLPSURSHULI
WKHQRQPRYDQWLVQRWDIIRUGHGDVXIILFLHQWRSSRUWXQLW\IRU
GLVFRYHU\´ 9DQFH )G DW ³,I WKH QRQPRYDQW
PDNHVDSURSHUDQGWLPHO\VKRZLQJRIDQHHGIRUGLVFRYHU\
WKH GLVWULFW FRXUW¶V HQWU\ RI VXPPDU\ MXGJPHQW ZLWKRXW
SHUPLWWLQJKLPWRFRQGXFWDQ\GLVFRYHU\DWDOOZLOOFRQVWLWXWH
DQDEXVHRIGLVFUHWLRQ´,GDW7KXVDOWKRXJK9DQFH
LQGLFDWHV WKDW VXPPDU\ MXGJPHQW LV LPSURSHU ZLWKRXW
GLVFRYHU\LWDFNQRZOHGJHVWKDWWKLVLVRQO\DJHQHUDOUXOH
$WWKHVDPHWLPHKRZHYHUWKHSODLQODQJXDJHRI5XOH
³GRHV QRW VSHFLILFDOO\ UHTXLUH RU HYHQ H[SUHVVO\ DXWKRUL]H
UHFHLSW RI RUDO HYLGHQFH DQG RWKHU W\SHV RI HYLGHQFH LQ D
KHDULQJ VHWWLQJ´ -DPHV :P 0RRUH HW DO 0RRUH¶V
)HGHUDO3UDFWLFH†>@>D@DWWR GHG
0RUHRYHU³RUDOWHVWLPRQ\LVQRWIDYRUHGLQVXPPDU\
MXGJPHQWSURFHHGLQJVGXHWRWKHZHOOIRXQGHGUHOXFWDQFHWR
WXUQDVXPPDU\MXGJPHQWKHDULQJLQWRDWULDO´,GDW
)XUWKHUDFRXUWKDVGLVFUHWLRQWRKHDUHYLGHQFHRQPRWLRQVE\
1RV 0DUFKY/HYLQHHWDO
0DUFK PRYHG ZLWK KLV FKLOGUHQ IURP 7HQQHVVHH WR ,OOLQRLV LQ
DIWHU KLV ZLIH¶V GLVDSSHDUDQFH 6KRUWO\ DIWHU KH UHORFDWHG WR ,OOLQRLV WKH
/HYLQHV VRXJKW JUDQGSDUHQW YLVLWDWLRQ WKHUH ,Q 0DUFK UHORFDWHG WR
0H[LFR
RUGHUHQWHUHGE\DQ,OOLQRLVFRXUWRQ0D\7KLV
,OOLQRLV RUGHU JUDQWHG WKHP D WKLUW\QLQH GD\ SHULRG RI
XQLQWHUUXSWHGYLVLWDWLRQZLWK6DPVRQDQG7]LSRUD$OWKRXJK
WKH YLVLWDWLRQ RUGHU GLG QRW UHVWULFW WKH /HYLQHV¶ DELOLW\ WR
WUDYHO ZLWK WKH FKLOGUHQ WKH RUGHU GLG QRW DXWKRUL]H WKH
/HYLQHVWRUHPRYHWKHFKLOGUHQIURP0H[LFRIRUYLVLWDWLRQ
7KH/HYLQHVREWDLQHGD0H[LFDQFRXUWRUGHUJLYLQJHIIHFWWR
WKH,OOLQRLVYLVLWDWLRQRUGHUEXWWKH0H[LFDQRUGHUH[SOLFLWO\
UHTXLUHGWKDWWKHYLVLWDWLRQRFFXULQ*XDGDODMDUD0H[LFR7KH
/HYLQHVZHQWWRWKHFKLOGUHQ¶VVFKRRODFFRPSDQLHGE\WKH
0H[LFDQ MXGJH DQG DUPHG SROLFH DQG WRRN SK\VLFDO
SRVVHVVLRQRIWKHFKLOGUHQSXUVXDQWWRWKHVHRUGHUVRQ-XQH
7KDWVDPHQLJKWFRQWUDU\WRWKH0H[LFDQFRXUW
RUGHUWKH\OHIW0H[LFRZLWKWKHFKLOGUHQDQGUHWXUQHGZLWK
WKHPWR7HQQHVVHHZKHUHWKH/HYLQHVUHVLGH7KHUHLVDQ
RXWVWDQGLQJ0H[LFDQDUUHVWZDUUDQWDJDLQVWWKH/HYLQHVDQG
WKHLUDGXOWVRQZKRLVDOVRRQHRIWKHLUDWWRUQH\VRQDSSHDO
IRUWKHNLGQDSSLQJRIWKHFKLOGUHQ
7KH,OOLQRLVFRXUWRUGHUHGYLVLWDWLRQSHULRGH[SLUHG-XO\
6LQFHWKDWWLPHWKH/HYLQHVKDYHUHIXVHGWRUHWXUQWKH
FKLOGUHQWRWKHLUIDWKHULQ-DOLVFR0H[LFRZKHUHWKHFKLOGUHQ
KDGUHVLGHGIRUPRUHWKDQRQH\HDU SULRUWRWKHLUUHPRYDO
,QVWHDG WKH /HYLQHV KDYH VRXJKW WHUPLQDWLRQ RI 0DUFK¶V
SDUHQWDO ULJKWV DQG FXVWRG\ RI WKHLU JUDQGFKLOGUHQ E\
LQVWLWXWLQJSURFHHGLQJVLQ7HQQHVVHH
0DUFKILOHGKLV3HWLWLRQIRU5HWXUQRI&KLOGUHQXQGHUWKH
,&$5$ RQ $XJXVW DVVHUWLQJ WKDW WKH\ ZHUH
ZURQJIXOO\UHPRYHGIURPWKHLUKDELWXDOUHVLGHQFHLQ0H[LFR
LQYLRODWLRQRIKLVFXVWRG\ULJKWVDQGWKH+DJXH&RQYHQWLRQ
,QDGGLWLRQWRWKHUHWXUQRIKLVFKLOGUHQ0DUFKUHTXHVWHGWKDW
WKHGLVWULFWFRXUWH[SHGLWHPDWWHUVHQWHUDSURYLVLRQDORUGHU
GLUHFWLQJWKH/HYLQHVWRUHWXUQKLVFKLOGUHQSHQGLQJDKHDULQJ
RUDOWHUQDWLYHO\WKDWWKHFRXUWJUDQWKLPLPPHGLDWHULJKWVRI

-- 5 of 10 --

0DUFKY/HYLQHHWDO 1RV
7KH +DJXH &RQYHQWLRQ UHTXLUHV D FRXUW WR FRQVLGHU VRFLDO
EDFNJURXQG LQIRUPDWLRQ RI WKH FKLOGUHQ SURYLGHG E\ WKH &HQWUDO $XWKRULW\
RI WKH FKLOGUHQ¶V FRXQWU\ RI KDELWXDO UHVLGHQFH +DJXH &RQYHQWLRQ DUW
+HUH WKH GLVWULFW FRXUW UHTXHVWHG D YDULHW\ RI VXFK LQIRUPDWLRQ ,W
DFFHVVLQFOXGLQJWHOHSKRQHFRQWDFWZLWKWKHFKLOGUHQDQGD
VFKHGXOHIRUWKHFKLOGUHQWRKDYHWLPHZLWKKLPXQWLODKHDULQJ
RQWKHPHULWVWKDWWULDOEHVHWLQDGYDQFHRIWKHFKLOGUHQ¶V
VFKRRO\HDUDQGRWKHUUHOLHI
7KH/HYLQHVILOHGDVZRUQ $QVZHURQ$XJXVW
$PRQJQXPHURXVGHIHQVHVUDLVHGWKH/HYLQHVDVVHUWHGWKDW
0DUFKVKRXOGEHGLVHQWLWOHGIURPEULQJLQJKLVSHWLWLRQEHIRUH
WKHFRXUWXQGHUWKHIXJLWLYHGLVHQWLWOHPHQWGRFWULQH7KH\DOVR
DVVHUWHG WKDW 0H[LFR LV QRW WKH KDELWXDO UHVLGHQFH RI WKH
FKLOGUHQDVUHTXLUHGIRUWKHUHWXUQRIFKLOGUHQXQGHUDUWLFOHV
DQGRIWKH+DJXH&RQYHQWLRQ 7KH\IXUWKHUDVVHUWHG
H[FHSWLRQVWRUHWXUQRIFKLOGUHQXQGHUDUWLFOHV E DQGRI
WKH WUHDW\ LH WKDW UHWXUQ RI WKH FKLOGUHQ WR 0DUFK ZRXOG
SUHVHQWDJUDYHULVNRISV\FKRORJLFDODQGSK\VLFDOKDUPDV
ZHOODVSODFHWKHPLQDQLQWROHUDEOHVLWXDWLRQDQGWKDWUHWXUQ
RIWKHFKLOGUHQZRXOGYLRODWHKXPDQULJKWVDQGIXQGDPHQWDO
IUHHGRPV,QDGGLWLRQWKH\DVVHUWHGWKDWIXOOIDLWKDQGFUHGLW
ZHUHGXHWRYDULRXVVWDWHDQG0H[LFDQFRXUWGHFLVLRQVXQGHU
DYDULHW\RIOHJDOWKHRULHVLQFOXGLQJ³DEVWHQWLRQ´
2Q$XJXVW0DUFKPRYHGIRUVXPPDU\MXGJPHQW
RU SDUWLDO VXPPDU\ MXGJPHQW RQ WKH TXHVWLRQ ZKHWKHU WKH
/HYLQHV ZURQJIXOO\ UHPRYHG RU ZURQJIXOO\ UHWDLQHG WKH
FKLOGUHQXQGHUWKH,&$5$7KHQH[WGD\WKH/HYLQHVPRYHG
WRGLVPLVVWKHSHWLWLRQEDVHGRQ0DUFK¶VLQDELOLW\WRHVWDEOLVK
WKDW0H[LFRZDVWKHFKLOGUHQ¶VKDELWXDOUHVLGHQFHDQGWKH
IXJLWLYHGLVHQWLWOHPHQWGRFWULQH
2Q6HSWHPEHUWKHGLVWULFWFRXUWUXOHGWKDWLWZRXOG
GHFLGHWKHVHSHQGLQJPRWLRQVSULRUWRDOORZLQJDQ\GLVFRYHU\
0RUH WKDQ D PRQWK ODWHU DQG DIWHU WKH FRXUW DOORZHG D
YROXPLQRXVDPRXQWRIHYLGHQFHLQWRWKHUHFRUGLQFRQMXQFWLRQ
ZLWKWKHSDUWLHV¶EULHIVDQGLQGHSHQGHQWO\VRXJKWLQIRUPDWLRQ
XQGHUWKHWHUPVRIWKHWUHDW\WKHGLVWULFWFRXUWHQWHUHGDILIW\
1RV 0DUFKY/HYLQHHWDO
7KLV &RXUW KDV UHFHQWO\ QRWHG WKDW WKH SODLQ ODQJXDJH RI 5XOH I
UHTXLUHV DQ DIILGDYLW DQG WKDW RWKHU &LUFXLWV KDYH VWULFWO\ FRQVWUXHG WKH
5XOH &DFHYLF Y &LW\ RI +D]HO 3DUN )G WK &LU
GHFOLQLQJ WR DGGUHVV WKH LVVXH ZKHWKHU DQ DIILGDYLW LV QHFHVVDU\
EHUHWXUQHGWRWKHLUSODFHRIKDELWXDOUHVLGHQFHVRWKDWFXVWRG\
GHWHUPLQDWLRQV DUH PDGH WKHUH %\ LQYRNLQJ WKH WUHDW\¶V
H[FHSWLRQV LQ WKLV FDVH ZKDW WKH /HYLQHV WUXO\ VHHN LV D
GHWHUPLQDWLRQUHJDUGLQJWKHDGHTXDF\RI0DUFKDVDSDUHQWLQ
OLJKWRIKLVZLIH¶VGLVDSSHDUDQFH7KLVIDOOVVTXDUHO\ZLWKLQ
WKH³IRUELGGHQWHUULWRU\´RIGHFLGLQJWKHPHULWVRIWKHSDUWLHV¶
FXVWRG\ GLVSXWH )ULHGULFK )G DW 7KH GLVWULFW
FRXUWSURSHUO\UHFRJQL]HGWKH/HYLQHV¶DUJXPHQWIRUZKDWLW
LVDQGGHFOLQHGWRHQWHUWKLVIRUELGGHQWHUULWRU\
'
7KH /HYLQHV DUJXH WKDW WKH GLVWULFW FRXUW HUUHG ZKHQ LW
JUDQWHG VXPPDU\ MXGJPHQW LQ IDYRU RI 0DUFK ZLWKRXW
DOORZLQJ GLVFRYHU\ RU DQ HYLGHQWLDU\ KHDULQJ 7KH\ DOVR
FRPSODLQWKDWWKH\ZHUHQRWDOORZHGWRGHYHORSWKHLUWUHDW\
GHIHQVHVXQGHUDUWLFOHVDQGRIWKH+DJXH&RQYHQWLRQ
SULRUWRWKHFRXUW¶VJUDQWRIVXPPDU\MXGJPHQWLQIDYRURI
0DUFK
:HDGRSWWKHGLVWULFWFRXUW¶VRSLQLRQRQWKLVSRLQWDOVR:H
WDNH D IHZ PRPHQWV WR HODERUDWH KRZHYHU VLQFH WKLV LV
DSSDUHQWO\DTXHVWLRQRIILUVWLPSUHVVLRQ
:HUHYLHZIRUDQDEXVHRIGLVFUHWLRQDFODLPWKDWVXPPDU\
MXGJPHQW ZDV SUHPDWXUHO\ HQWHUHG EHFDXVH DGGLWLRQDO
GLVFRYHU\ ZDV QHHGHG 9DQFH H[ UHO +DPPRQV Y 8QLWHG
6WDWHV)G WK&LU +RZHYHUVXFKDQ
DUJXPHQW LV QRW SUHVHUYHG IRU DSSHDO XQOHVV LW LV ILUVW
DGYDQFHG LQ WKH GLVWULFW FRXUW E\ WKH ILOLQJ RI DQ DIILGDYLW
SXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUH I RUE\WKH
ILOLQJRIDPRWLRQIRUDGGLWLRQDOGLVFRYHU\,G FLWLQJ3ORWWY
*HQHUDO0RWRUV&RUS)G WK&LU
$VVXPLQJ WKDW D PRWLRQ IRU GLVFRYHU\ ZLWKRXW DQ
DFFRPSDQ\LQJDIILGDYLWLVVXIILFLHQWWKH/HYLQHVILOHGVXFK

-- 6 of 10 --

0DUFKY/HYLQHHWDO 1RV
WKH EDVLV RI WKH DOOHJDWLRQV FRQWDLQHG LQ WKH /HYLQHV¶
SOHDGLQJV 7KH GHIDXOW MXGJPHQW GHFODUHG -DQHW /HYLQH
0DUFKGHDGDQGWKDW0DUFKNLOOHGKHU7KXVWKH/HYLQHV
QHYHUSURIIHUHGHYLGHQFHRIWKHLUDOOHJDWLRQVLQWKHVWDWHFRXUW
SURFHHGLQJV 0DUFK RQ WKH RWKHU KDQG KDV DYHUUHG LQ D
VZRUQGHFODUDWLRQWKDWKHGLGQRWNLOOKLVZLIHWKDWVKHGURYH
DZD\RQHHYHQLQJWKDWWKHUHLVQRHYLGHQFHRIZKLFKKHLV
DZDUHWKDWVKHLVGHFHDVHGDQGWKDWKHLVDSSHDOLQJWKHGHIDXOW
MXGJPHQW
(YHQDVVXPLQJWKDWWKHGHIDXOWMXGJPHQWZRXOGEHXSKHOG
RQDSSHDOWKDWLWVKRXOGEHJLYHQSUHFOXVLYHHIIHFWLQWKHVH
SURFHHGLQJVDQGWKDWLWLVVXIILFLHQWWRVKRZWKDWWKHUHLVVRPH
ULVNRIKDUPWRWKHFKLOGUHQLQEHLQJUHWXUQHGWR0DUFKWKLV
GHIDXOWMXGJPHQWLVQRWFOHDUDQGFRQYLQFLQJHYLGHQFHWKDW
WKHUHLVDJUDYHULVNRIKDUPWRWKHFKLOGUHQLQEHLQJUHWXUQHG
WR WKHLU IDWKHU 2XU UHYLHZ RI WKH UHFRUG OLNH WKDW RI WKH
GLVWULFWFRXUWVKRZVQRDOOHJDWLRQVE\WKH/HYLQHVRYHUWKH
PDQ\\HDUVWKDWWKH\SXUVXHGYLVLWDWLRQZLWKWKHFKLOGUHQWKDW
0DUFKKDVKDUPHGWKHPRUZRXOGKDUPWKHP1RUKDYHWKH
/HYLQHVPDGHDQ\VKRZLQJRIVHULRXVDEXVHPXFKOHVVQHJOHFW
RIWKHFKLOGUHQE\0DUFK$WEHVWWKHGHIDXOWMXGJPHQWPLJKW
UDLVH D WHQXRXV LQIHUHQFH WKDW KH PLJKW KXUW KLV FKLOGUHQ
(YHQWKDWLQIHUHQFHKRZHYHUGRHVQRWULVHWRWKHOHYHORIDQ
LPPLQHQWULVNRIJUDYHKDUP)XUWKHUWKHFKLOGUHQDUHQRW
EHLQJUHWXUQHGWRDQ\RWKHUW\SHRIFLUFXPVWDQFHVWKDWZRXOG
SODFHWKHPLQLPPLQHQWKDUPVXFKDVWRDZDU]RQHRUWRDQ
DUHDRIUDPSDQWGLVHDVHRUIDPLQH7KH/HYLQHVDOVRKDYHQRW
VKRZQWKH0H[LFDQDXWKRULWLHVLQFDSDEOHRIRUXQZLOOLQJWR
SURWHFWWKHFKLOGUHQ,QGHHGWKH/HYLQHVZHUHVXFFHVVIXOLQ
REWDLQLQJWKHDVVLVWDQFHRIWKH0H[LFDQDXWKRULWLHVWRHQIRUFH
D YLVLWDWLRQ RUGHU 7KLV GHPRQVWUDWHV WKDW WKH IRUHLJQ
DXWKRULWLHV ZLOO KHDU DQG FRQVLGHU WKH /HYLQHV¶ DUJXPHQWV
VKRXOGWKH\VHHNUHOLHIXQGHUWKHYLVLWDWLRQDQGFXVWRG\ODZV
RI0H[LFR
7KH+DJXH&RQYHQWLRQDQGWKH,&$5$ZHUHVSHFLILFDOO\
GHVLJQHG WR GLVFRXUDJH WKRVH ZKR ZRXOG UHPRYH RU UHWDLQ
FKLOGUHQLQWKHKRSHVRIVHHNLQJD³KRPHFRXUWDGYDQWDJH´E\
HQVXULQJWKDWFKLOGUHQZURQJIXOO\UHPRYHGRUUHWDLQHGZRXOG
1RV 0DUFKY/HYLQHHWDO
DOVR FRQGXFWHG VHSDUDWH LQ FDPHUD LQWHUYLHZV RI 6DPVRQ DQG 7]LSRUD ZLWK
WKH DVVLVWDQFH RI D OLFHQVHG FOLQLFDO SV\FKRORJLVW
WZRSDJHRSLQLRQDQGDQRUGHULQZKLFKLWJUDQWHG0DUFK¶V
SHWLWLRQDQGRUGHUHGWKH/HYLQHVWRLPPHGLDWHO\UHWXUQWKH
FKLOGUHQ WR KLP 6SHFLILFDOO\ WKH GLVWULFW FRXUW KHOG WKDW
0DUFKKDGPHWKLVEXUGHQRIHVWDEOLVKLQJZURQJIXOUHWHQWLRQ
,WIXUWKHUKHOGWKDWWKH/HYLQHVKDGQRWPHWWKHLUEXUGHQRI
VKRZLQJH[FHSWLRQVWRUHWXUQRIFKLOGUHQXQGHUWKHWUHDW\,Q
DGGLWLRQ LW GHFOLQHG WR GLVHQWLWOH 0DUFK IURP EULQJLQJ KLV
SHWLWLRQ+RZHYHUWKHFRXUWLQDLGRIDSSHOODWHMXULVGLFWLRQ
VWD\HG LWV RUGHU XQWLO 2FWREHU RU XQWLO IXUWKHU
GLUHFWLRQIURPWKLV&RXUW
%RWK SDUWLHV DSSHDOHG $ SDQHO RI WKLV &RXUW RUGHUHG D
WHPSRUDU\VWD\RIWKHGLVWULFWFRXUW¶VRUGHUXQWLOWKH/HYLQHV
ILOHGDVXEVWDQWLYHPRWLRQVHHNLQJDVWD\$IWHUWKH/HYLQHV
ILOHGVXFKDPRWLRQWKLV&RXUWJUDQWHGDVWD\RIWKHGLVWULFW
FRXUW¶V RUGHU SHQGLQJ UHVROXWLRQ RI WKH LQVWDQW DSSHDO DQG
FURVVDSSHDO
5HJDUGLQJ WKH PHULWV RQ DSSHDO EHIRUH WKLV &RXUW WKH
/HYLQHVDUJXHWKDWWKHGLVWULFWFRXUWHUUHGZKHQLWGHFOLQHGWR
GLVHQWLWOH0DUFKIURPSXUVXLQJKLVSHWLWLRQXQGHUWKHIXJLWLYH
GLVHQWLWOHPHQWGRFWULQHEDVHGRQYDULRXVVWDWHFRXUWRUGHUVRI
FRQWHPSW 7KH\ DOVR FRQWHQG WKDW WKH GLVWULFW FRXUW HUUHG
ZKHQLWUHIXVHGWRDOORZGLVFRYHU\RUDKHDULQJRQWKHPHULWV
SULRUWRUXOLQJRQWKHSHWLWLRQRURWKHUZLVHSHUPLWWKHPWR
GHYHORSWKHLUDIILUPDWLYHGHIHQVHV7KH\IXUWKHUDUJXHWKDW
WKHGLVWULFWFRXUWHUUHGZKHQLWJUDQWHGVXPPDU\MXGJPHQWLQ
IDYRURI0DUFK)LQDOO\LQWKHLUFRPELQHGEULHIUHSO\LQJWR
0DUFK¶VUHVSRQVHWRWKHLUDSSHDODQGUHVSRQGLQJWR0DUFK¶V
FURVVDSSHDOWKH/HYLQHVDVVHUWWKDWWKH<RXQJHUDEVWHQWLRQ
GRFWULQHLVDSSOLFDEOHWRWKLVFDVH
2QFURVVDSSHDO0DUFKDUJXHVWKDWWKHGLVWULFWFRXUWHUUHG
ZKHQLWIDLOHGWRDGGUHVVKLVDUJXPHQWWKDWWKH/HYLQHVKDYH
QRVWDQGLQJWRDVVHUWDQ\GHIHQVHV+HDOVRDUJXHVWKDWWKH
GLVWULFWFRXUWHUUHGZKHQLWFRQVLGHUHGFHUWDLQDXGLRWDSHVDV
DGPLVVLEOHHYLGHQFHIRUSXUSRVHVRIUXOLQJRQKLVSHWLWLRQ

-- 7 of 10 --

0DUFKY/HYLQHHWDO 1RV
,,
,QDGGUHVVLQJWKHTXHVWLRQVUDLVHGLQWKLVDSSHDOZHPXVW
NHHSLQPLQGWKHIROORZLQJJHQHUDOSULQFLSDOVLQKHUHQWLQWKH
+DJXH&RQYHQWLRQDQGWKH,&$5$
)LUVWDFRXUWLQWKHDEGXFWHGWRQDWLRQKDVMXULVGLFWLRQWR
GHFLGH WKH PHULWV RI DQ DEGXFWLRQ FODLP EXW QRW WKH
PHULWVRIWKHXQGHUO\LQJFXVWRG\GLVSXWH6HFRQGWKH
+DJXH&RQYHQWLRQLVJHQHUDOO\LQWHQGHGWRUHVWRUHWKH
SUHDEGXFWLRQ VWDWXV TXR DQG WR GHWHU SDUHQWV IURP
FURVVLQJERUGHUVLQVHDUFKRIDPRUHV\PSDWKHWLFFRXUW
)ULHGULFKY)ULHGULFK)G WK&LU
FLWDWLRQVRPLWWHG
$
$VDSUHOLPLQDU\PDWWHUZHQHHGQRWDGGUHVVWKH/HYLQHV¶
DEVWHQWLRQDUJXPHQW+DYLQJLQYRNHGWKHMXULVGLFWLRQRIWKLV
&RXUWDQGLQOLJKWRIWKHLUJRDOWRRYHUWXUQWKHGLVWULFWFRXUW¶V
RUGHUWRUHWXUQWKHFKLOGUHQWKH/HYLQHV¶DUJXPHQWWKDW³WKLV
FRXUWDEVWDLQ´LVDEVXUG)LQDO&RPELQHG5HSO\DQG5HVS
%URQ%HKDOIRIWKH$SSHOODQWVDW
%
7KH /HYLQHV DOVR DUJXH DV D WKUHVKROG PDWWHU WKDW WKH
GLVWULFW FRXUW HUUHG LQ GHFOLQLQJ WR GLVHQWLWOH 0DUFK IURP
EULQJLQJKLVSHWLWLRQEDVHGRQKLVIXJLWLYHVWDWXVIURPYDULRXV
VWDWHFRXUWFRQWHPSWRUGHUV
+DYLQJFDUHIXOO\UHYLHZHGWKHSDUWLHV¶EULHIVLQOLJKWRIWKH
DSSOLFDEOHODZZHKROGWKDWWKHGLVWULFWFRXUWGLGQRWDEXVHLWV
GLVFUHWLRQZKHQLWGHFOLQHGWRGLVHQWLWOH0DUFKIRUWKHUHDVRQV
VHWIRUWKLQLWVRSLQLRQ6HH0DUFKBBB)6XSSGDWBBB
1R DW DSSO\LQJ WKH IDFWRUV VHW IRUWK LQ
'HJHQ Y 8QLWHG 6WDWHV 86 GLVFXVVLQJ
DSSOLFDWLRQRIWKHIXJLWLYHGLVHQWLWOHPHQWGRFWULQH LQOLJKWRI
7UR[HOY*UDQYLOOH86 SOXUDOLW\RSLQLRQ
GLVFXVVLQJWKHOLEHUW\LQWHUHVWVRISDUHQWVLQWKHFDUHFXVWRG\
1RV 0DUFKY/HYLQHHWDO
$W WKH WLPH 0DUFK ZDV OLYLQJ DQG ZRUNLQJ LQ 0H[LFR WU\LQJ WR
VXSSRUW KLV IDPLO\ ZKLOH GHIHQGLQJ DJDLQVW WKH ZURQJIXO GHDWK FODLP
0DUFK DYHUV WKDW KLV ILQDQFHV DQG WKH QHFHVVLW\ RI FDULQJ IRU KLV FKLOGUHQ
GLG QRW DOORZ KLP WR WUDYHO WR 1DVKYLOOH 7HQQHVVHH IRU WKH GHSRVLWLRQ
>:@HEHOLHYHWKDWDJUDYHULVNRIKDUPIRUWKHSXUSRVHVRI
WKH&RQYHQWLRQFDQH[LVW LQRQO\WZRVLWXDWLRQV)LUVW
WKHUHLVDJUDYHULVNRIKDUPZKHQUHWXUQRIWKHFKLOGSXWV
WKHFKLOGLQLPPLQHQWGDQJHUSULRUWRWKHUHVROXWLRQRI
WKHFXVWRG\GLVSXWHHJUHWXUQLQJWKHFKLOGWRD]RQHRI
ZDUIDPLQHRUGLVHDVH6HFRQGWKHUHLVDJUDYHULVNRI
KDUP LQ FDVHV RI VHULRXV DEXVH RU QHJOHFW RU
H[WUDRUGLQDU\HPRWLRQDOGHSHQGHQFHZKHQWKHFRXUWLQ
WKHFRXQWU\RIKDELWXDOUHVLGHQFHIRUZKDWHYHUUHDVRQ
PD\EHLQFDSDEOHRUXQZLOOLQJWRJLYHWKHFKLOGDGHTXDWH
SURWHFWLRQ
,GDW
7KH/HYLQHVSULQFLSDOO\DUJXHGSXUVXDQWWRDUWLFOH E RI
WKHWUHDW\WKDWWKHFKLOGUHQVKRXOGQRWEHUHWXUQHGWR0DUFK
EHFDXVH WR UHWXUQ WKHP ZRXOG SUHVHQW D JUDYH ULVN RI
SV\FKRORJLFDODQGSK\VLFDOKDUPWR6DPVRQDQG7]LSRUDDQG
SODFHWKHPLQDQLQWROHUDEOHVLWXDWLRQ7KH/HYLQHVUHO\LQ
ODUJHSDUWRQDGHIDXOWMXGJPHQWWKH\REWDLQHGLQDZURQJIXO
GHDWKDFWLRQDJDLQVW0DUFKDIWHUWKHGLVDSSHDUDQFHRIWKHLU
GDXJKWHU
:H ILQG WKH FLUFXPVWDQFHV VXUURXQGLQJ WKH HQWU\ RI WKLV
GHIDXOW OLNH WKH FLUFXPVWDQFHV VXUURXQGLQJ WKH 7HQQHVVHH
FRQWHPSWRUGHUVKLJKO\XQXVXDODQGVXJJHVWLYHRIWKHKRPH
FRXUW DGYDQWDJH WKDW WKH WUHDW\ ZDV GHVLJQHG WR FRUUHFW
6SHFLILFDOO\WKLVGHIDXOWMXGJPHQWZDVHQWHUHGDVDGLVFRYHU\
VDQFWLRQ7KH7HQQHVVHHFRXUWGHQLHGDUHTXHVWE\0DUFKWR
KDYHKLVGHSRVLWLRQFRQGXFWHGE\WHOHSKRQHRUYLGHRWDSH
7KHQZKHQ0DUFKGLGQRWSUHVHQWKLPVHOIIRUWKHGHSRVLWLRQ
ORFDOO\WKH7HQQHVVHHFRXUWRUGHUHG0DUFK¶VDQVZHUVWULFNHQ
DQGSUHFOXGHGKLPIURPSUHVHQWLQJDQ\WHVWLPRQ\UHJDUGLQJ
GHIHQVHVGHFODUHGWKDWDOOWKH/HYLQHV¶GHFODUDWLRQVLQWKHLU
SHWLWLRQZHUHWUXHDQGFRUUHFWDQGHQWHUHGDGHIDXOWVROHO\RQ

-- 8 of 10 --

0DUFKY/HYLQHHWDO 1RV
WKH /HYLQHV¶ DVVHUWLRQV WKDW WKH H[FHSWLRQV WR UHWXUQ RI
FKLOGUHQXQGHUWKHWUHDW\ZHUHDSSOLFDEOHWKHFRXUWIRXQGWKDW
WKH\KDGQRWFDUULHGWKHLUEXUGHQXQGHUWKHKHLJKWHQHGFOHDU
DQGFRQYLQFLQJHYLGHQFHVWDQGDUGRIHVWDEOLVKLQJWKDWWKHUH
ZHUH JHQXLQH LVVXHV RI PDWHULDO IDFW UHJDUGLQJ WKH WUHDW\
H[FHSWLRQVWKH\UDLVHG0DUFKBBB)6XSSGDWBBB1R
DW:HWKHUHIRUHLQFRUSRUDWHDQGDGRSW
WKHGLVWULFWFRXUW¶VWKRURXJKUHDVRQLQJDVWKHKROGLQJRIWKLV
&RXUW LQ UHJDUG WR WKLV LVVXH DV ZHOO :H SDXVH RQO\ WR
FRPPHQWEULHIO\RQWKH/HYLQHV¶WUHDW\H[FHSWLRQVDQGWKH
KLJKO\XQXVXDOQDWXUHRIWKLVFDVH
:KHQ D PRWLRQ IRU VXPPDU\ MXGJPHQW LV PDGH DQG
VXSSRUWHGE\FRPSHWHQWDGPLVVLEOHHYLGHQFHWKHQRQPRYDQW
PD\QRWUHVWRQKLVSOHDGLQJVEXWPXVWFRPHIRUZDUGZLWK
DIILGDYLWVRURWKHUDGPLVVLEOHHYLGHQFHVHWWLQJIRUWK³VSHFLILF
IDFWVVKRZLQJWKHUHLVDJHQXLQHLVVXHIRUWULDO´$QGHUVRQY
/LEHUW\/REE\,QF86 TXRWLQJ)HG
5&LY3 H 7RGHWHUPLQHZKHWKHUDIDFWXDOGLVSXWHLV
JHQXLQHWKHFRXUWLQTXLUHV³ZKHWKHUWKHHYLGHQFHSUHVHQWVD
VXIILFLHQW GLVDJUHHPHQW WR UHTXLUH VXEPLVVLRQ WR D MXU\ RU
ZKHWKHULWLVVRRQHVLGHGWKDWRQHSDUW\PXVWSUHYDLODVD
PDWWHURIODZ´,GDW$PHUHVFLQWLOODRIHYLGHQFHLV
LQVXIILFLHQW,GDW0RUHRYHUWKHHYLGHQFHSUHVHQWHG
PXVW EH YLHZHG WKURXJK WKH SULVP RI WKH VXEVWDQWLYH
HYLGHQWLDU\EXUGHQLHE\WKHSUHSRQGHUDQFHRIWKHHYLGHQFH
RU E\ FOHDU DQG FRQYLQFLQJ HYLGHQFH ,G DW 7KH
HYLGHQFH RI WKH QRQPRYDQW PXVW EH EHOLHYHG DQG DOO
UHDVRQDEOH LQIHUHQFHV PXVW EH GUDZQ LQ WKH QRQPRYDQW¶V
IDYRU,GDW
8QGHU WKH WUHDW\ DQG WKH ,&$5$ RQFH WKH SHWLWLRQHU
HVWDEOLVKHV ZURQJIXO UHPRYDO RU UHWHQWLRQ DV KHUH WKH
UHVSRQGHQWPXVWHVWDEOLVKE\FOHDUDQGFRQYLQFLQJHYLGHQFH
WKH QDUURZ H[FHSWLRQV XQGHU DUWLFOHV E DQG +DJXH
&RQYHQWLRQ DUWV E 86& † H $
)ULHGULFK )G DW ,Q GLFWD WKH )ULHGULFK FRXUW
VWDWHG
1RV 0DUFKY/HYLQHHWDO
0RVW RI WKH ,OOLQRLV FRQWHPSW RUGHUV ZHUH HQWHUHG DIWHU 0DUFK
PRYHG WR 0H[LFR $Q HDUOLHU FRQWHPSW RUGHU ZDV YDFDWHG RQ DSSHDO 6HH
,Q UH 9LVLWDWLRQ RI 0DUFK 1R ' VOLS RS DW ,OO
$SS &W VW 'LV -XQH KROGLQJ WKDW 0DUFK¶V GXH SURFHVV ULJKWV
ZHUH YLRODWHG ZKHQ WKH FRXUW FRQGXFWHG D KHDULQJ ZLWKRXW QRWLFH WR
0DUFK WKDW WKH FRXUW LPSURSHUO\ JUDQWHG WKH JUDQGSDUHQWV HTXDO LI QRW
VXSHULRU YLVLWDWLRQ ULJKWV RYHU WKRVH RI WKH QDWXUDO IDWKHU WKDW DQ
LQMXQFWLRQ SUHYHQWLQJ 0DUFK IURP UHPRYLQJ WKH FKLOGUHQ IURP ,OOLQRLV ZDV
LPSURSHUO\ HQWHUHG ZLWKRXW QRWLFH WR KLP DQG YDFDWLQJ WKH FRQWHPSW IRU
YLRODWLRQ RI WKH LQMXQFWLRQ
,Q KLV VZRUQ GHFODUDWLRQ SXUVXDQW WR 86& † 0DUFK DYHUV
WKDW KH LV XQDEOH WR SXUJH KLPVHOI RI WKH FRQWHPSW GHVSLWH KLV VLQFHUH
GHVLUH WR GR VR EHFDXVH KH KDV ORRNHG IRU WKH LWHPV DQG KDV EHHQ XQDEOH
WR ILQG WKHP +H DOVR DYHUV WKDW KH SHUVRQDOO\ WHVWLILHG WR WKLV DQG
VXEPLWWHG VZRUQ DIILGDYLWV WR WKLV HIIHFW EHIRUH WKH 7HQQHVVHH FRXUW ZKR
LPSRVHG WKH FRQWHPSW RUGHUV
DQGFRQWURORIWKHLUFKLOGUHQDVEHLQJ³SHUKDSVWKHROGHVWRI
WKHIXQGDPHQWDOOLEHUW\LQWHUHVWV´ :HWKHUHIRUHLQFRUSRUDWH
DQGDGRSWWKHGLVWULFWFRXUW¶VUHDVRQLQJDVWKHKROGLQJRIWKLV
&RXUW+RZHYHUZHZLVKWRFRPPHQWEULHIO\RQWKHPDWWHU
,QDUJXLQJWKDW0DUFKVKRXOGKDYHEHHQGLVHQWLWOHGIURP
DFFHVVLQJWKHGLVWULFWFRXUWWRVHHNUHWXUQRIKLVFKLOGUHQWKH
/HYLQHVSRLQWWRYDULRXVVWDWHFRXUWFRQWHPSWRUGHUVHQWHUHG
LQERWK,OOLQRLVDQG7HQQHVVHH7KH,OOLQRLVFRQWHPSWRUGHUV
DURVH GXULQJ JUDQGSDUHQW YLVLWDWLRQ SURFHHGLQJV DQG VWHP
SULPDULO\IURP0DUFK¶VIDLOXUHWRDSSHDUZLWKWKHFKLOGUHQ
7KH7HQQHVVHHRUGHUVRQWKHRWKHUKDQGSHUWDLQWRDSUREDWH
SURFHHGLQJ 7KHVH FRQWHPSW RUGHUV VWHP IURP 0DUFK¶V
DOOHJHGPLVFRQGXFWLQDGHSRVLWLRQDQGRUGHUVUHTXLULQJKLP
WRUHSDLUVRPHIXUQLWXUHDQGUHWXUQYDULRXVLWHPVRISHUVRQDO
SURSHUW\LQFOXGLQJDEHDGHGHYHQLQJEDJDQGDEDE\EODQNHW
7KH 7HQQHVVHH FRQWHPSW RUGHUV DPRQJ RWKHU SHQDOWLHV
RUGHUHG0DUFKWREHLPSULVRQHGDQGILQHGDQGRUGHUHGWKH
FRXUWFOHUNWRWDNHDSSURSULDWHDFWLRQWRHQIRUFHFROOHFWLRQRI
WKHSHUGD\ILQH WKDWWKHQWRWDOHG IRU0DUFK¶V
IDLOXUHWRGHOLYHUWKHLWHPV
$WWKHRXWVHWZHQRWHWKDWKRZHYHUODEHOHGQRQHRIWKHVH
FRQWHPSWRUGHUVZHUH³FULPLQDO´FRQWHPSWVEHFDXVHWKHILQHV

-- 9 of 10 --

0DUFKY/HYLQHHWDO 1RV
DWLVVXHZHUHDYRLGDEOHE\SHUIRUPDQFHRIWKHUHTXLUHGDFWV
DQGQRGHILQLWHVHQWHQFHVZHUHLPSRVHG6HH+LFNVH[UHO
)HLRFNY)HLRFN86 KROGLQJWKDW
WKHVXEVWDQFHRIWKHSURFHHGLQJVDQGWKHFKDUDFWHURIUHOLHI
GHWHUPLQHV ZKHWKHU D FRQWHPSW LV RI D FLYLO RU FULPLQDO
QDWXUH )XUWKHUPRUH0DUFKLVDUJXDEO\QRWDIXJLWLYHJLYHQ
WKDWWKHRUGHUVZHUHHQWHUHGDJDLQVWKLPDIWHUKHPRYHGWR
0H[LFR HVSHFLDOO\ ZKHQ QR RUGHU OLPLWHG KLV WUDYHO DW WKH
WLPH KH PRYHG &I 'HJHQ 86 DW
GHFOLQLQJ WR UHVROYH WKH TXHVWLRQ ZKHWKHU 'HJHQ ZDV D
IXJLWLYH LQ DOO VHQVHV RI WKH ZRUG ZKHUH KH KDG PRYHG WR
6ZLW]HUODQG DERXW RQH \HDU SULRU WR EHLQJ LQGLFWHG E\ D
IHGHUDOJUDQGMXU\ 0RUHRYHUWKH,OOLQRLVFRXUWUHOLQTXLVKHG
MXULVGLFWLRQLQWKHYLVLWDWLRQSURFHHGLQJEHIRUH0DUFKILOHGKLV
,&$5$ SHWLWLRQ LQYRNLQJ WKH SURWHFWLRQV RI WKH +DJXH
&RQYHQWLRQ 7KH ,OOLQRLV FRXUW WKXV LQGLFDWHG LW KDV QR
LQWHUHVWLQHQIRUFLQJLWVRUGHUV
7RWKHH[WHQWWKDWFLYLOFRQWHPSWVKDYHIRUPHGWKHEDVLVIRU
GLVHQWLWOHPHQW VXFK FDVHV DUH LQDSSRVLWH WR WKH IDFWV KHUH
EHFDXVH WKH\ LQYROYHG DSSHOODWHOHYHO DSSOLFDWLRQ RI WKH
GRFWULQHWRDQDSSHOODQWZKRZDVDIXJLWLYHIURPFRQWHPSW
RUGHUV HQWHUHG E\ WKH GLVWULFW FRXUW LQ WKH FDVH VXE MXGLFH
8QLWHG6WDWHVY%DUQHWWH)G WK&LU
(PSLUH%OXH&URVV %OXH6KLHOGY)LQNHOVWHLQ)G
G&LU 6WHUQY8QLWHG6WDWHV)G G&LU
SHU FXULDP +HUH DOO WKH FRQWHPSW RUGHUV ZHUH
HQWHUHG E\ VWDWH FRXUWV DQG LQYROYHG RWKHU NLQGV RI
SURFHHGLQJVWKDQWKH+DJXH&RQYHQWLRQSHWLWLRQDWLVVXHKHUH
:HGHFOLQHWRH[SDQGWKHIXJLWLYHGLVHQWLWOHPHQWGRFWULQH³WR
VDQFWLRQE\GLVPLVVDODQ\FRQGXFWWKDWH[KLELWHGGLVUHVSHFW
IRUDQ\DVSHFWRIWKHMXGLFLDOV\VWHP´2UWHJD5RGULJXH]Y
8QLWHG6WDWHV86
,WLVZRUWKUHHPSKDVL]LQJWKH'HJHQ&RXUW¶VJXLGDQFHWR
FRXUWVLQGHFLGLQJZKHWKHUWRGLVHQWLWOHDFODLPDQWWKHUHPXVW
EH³UHVWUDLQWLQUHVRUWLQJWRLQKHUHQWSRZHU´DQGLWVXVHPXVW
³EH D UHDVRQDEOH UHVSRQVH WR WKH SUREOHPV DQG QHHGV WKDW
SURYRNHLW´'HJHQ86DW FLWDWLRQVRPLWWHG
$VWKH)LUVW&LUFXLWUHFHQWO\UHFRJQL]HGLQDQ,&$5$FDVH
1RV 0DUFKY/HYLQHHWDO
>$@SSO\LQJ WKH IXJLWLYH GLVHQWLWOHPHQW GRFWULQH ZRXOG
LPSRVHWRRVHYHUHDVDQFWLRQLQDFDVHLQYROYLQJSDUHQWDO
ULJKWV 3DUHQWKRRG LV RQH RI WKH JUHDWHVW MR\V DQG
SULYLOHJHV RI OLIH DQG XQGHU WKH &RQVWLWXWLRQ SDUHQWV
KDYHDIXQGDPHQWDOLQWHUHVWLQWKHLUUHODWLRQVKLSVZLWK
WKHLUFKLOGUHQ7REDUDSDUHQWZKRKDVORVWDFKLOGIURP
HYHQDUJXLQJWKDWWKHFKLOGZDVZURQJIXOO\UHPRYHGWR
DQRWKHUFRXQWU\LVWRRKDUVK
:DOVKY:DOVK)G VW&LU FLWDWLRQV
RPLWWHG *LYHQWKHIXQGDPHQWDOULJKWVDWLVVXHZHDJUHHWKDW
GLVHQWLWOHPHQWZLOOJHQHUDOO\EHWRRKDUVKDVDQFWLRQLQDFDVH
LQYROYLQJDQ,&$5$SHWLWLRQ
+HUHHYHQLIWKHFRQWHPSWVZHUHFULPLQDOLQQDWXUHDQG
0DUFKZDVFOHDUO\DIXJLWLYHIURPWKHPKDGWKHGLVWULFWFRXUW
GLVHQWLWOHG 0DUFK IURP HYHQ DUJXLQJ KLV ,&$5$ SHWLWLRQ
EHFDXVHKHGLGQRWUHWXUQDEHDGHGHYHQLQJEDJDQGDEDE\
EODQNHWLWZRXOGKDYHEHHQDQXQUHDVRQDEOHUHVSRQVHDQGDQ
DEXVH RI GLVFUHWLRQ $Q ,&$5$ SHWLWLRQHU VKRXOG QRW EH
GLVHQWLWOHG RQ VXFK SDWHQWO\ LQVLJQLILFDQW JURXQGV 7KH
GLVWULFW FRXUW WKHUHIRUH SURSHUO\ UHMHFWHG WKH /HYLQHV¶
YLQGLFWLYH DWWHPSW WR GHSULYH 0DUFK RI KLV GD\ LQ FRXUW
0DOLWLLVKRPLQXPHVWREYLDQGXP
&
7KH /HYLQHV DOVR DUJXH WKDW WKH GLVWULFW FRXUW HUUHG LQ
JUDQWLQJ VXPPDU\ MXGJPHQW LQ IDYRU RI 0DUFK $JDLQ
KDYLQJUHYLHZHGWKHSDUWLHV¶EULHIVLQOLJKWRIWKHDSSOLFDEOH
ODZZHDOVRKROGWKDWWKHGLVWULFWFRXUWGLGQRWHUULQJUDQWLQJ
VXPPDU\MXGJPHQWLQIDYRURI0DUFKIRUWKHUHDVRQVVHWIRUWK
LQLWVRSLQLRQ0DUFKBBB)6XSSGDWBBB1R
DW,QEULHIWKHGLVWULFWFRXUWIRXQGWKDW0DUFKPHWKLV
EXUGHQRIHVWDEOLVKLQJKLVFXVWRG\ULJKWVLQKLVFKLOGUHQWKDW
WKH\ ZHUH ZURQJIXOO\ UHWDLQHG E\ WKH /HYLQHV EH\RQG WKH
SHULRG RI FRXUWRUGHUHG YLVLWDWLRQ DQG WKDW WKH FKLOGUHQ
KDELWXDOO\UHVLGHGLQ0H[LFRDWWKHWLPHRIWKHLUUHPRYDODQG
ZURQJIXO UHWHQWLRQ DQG WKDW WKH /HYLQHV IDLOHG WR HVWDEOLVK
JHQXLQHLVVXHVRIPDWHULDOIDFWRQWKHVHLVVXHV0DUFKBBB)
6XSSGDWBBB1RDW,QUHJDUGWR

-- 10 of 10 --