02a0082p.06

)UHQFKY-RQHV 1R
WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ LQ FDVH LV
$)),50('
7KH +RQRUDEOH -DPHV 6 *ZLQ 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU WKH
1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
)LOH 1DPH DS
81,7('67$7(6&28572)$33($/6
)257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB
2/,9(5 )5(1&+ -5
3HWLWLRQHU$SSHOOHH
Y
.857 -21(6
5HVSRQGHQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1R²$UWKXU-7DUQRZ'LVWULFW-XGJH
$UJXHG-DQXDU\
'HFLGHGDQG)LOHG0DUFK
%HIRUH-21(6DQG&2/(&LUFXLW-XGJHV*:,1'LVWULFW
-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 2OJD $JQHOOR 2)),&( 2) 7+(
3526(&87,1* $77251(< &2817< 2) :$<1(
'HWURLW0LFKLJDQIRU$SSHOODQW'DYLG$0RUDQ67$7(

-- 1 of 8 --

)UHQFKY-RQHV 1R
7\ -RQHV LV QRW UHODWHG WR .XUW -RQHV WKH DSSHOODQW LQ WKLV FDVH
$33(//$7('()(1'(52)),&('HWURLW0LFKLJDQIRU
$SSHOOHH 21 %5,() 2OJD $JQHOOR 2)),&( 2) 7+(
3526(&87,1* $77251(< &2817< 2) :$<1(
'HWURLW0LFKLJDQIRU$SSHOODQW'DYLG$0RUDQ67$7(
$33(//$7('()(1'(52)),&('HWURLW0LFKLJDQIRU
$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
*:,1'LVWULFW-XGJH7KLVFDVHUHWXUQVWRXVIRUDVHFRQG
WLPH:LWKWKLVDSSHDOZHH[DPLQHZKHWKHUWKHGLVWULFWFRXUW
ZURQJO\ JUDQWHG D ZULW RI KDEHDV FRUSXV DIWHU D 0LFKLJDQ
FRXUWJDYHDVXSSOHPHQWDOLQVWUXFWLRQWRDGHDGORFNHGMXU\
7KH0LFKLJDQWULDOMXGJHJDYHWKHVXSSOHPHQWDOLQVWUXFWLRQ
ZKLFK GLG QRW FRQIRUP ZLWK WKH DSSURYHG 0LFKLJDQ
LQVWUXFWLRQZKHQWKHGHIHQGDQW¶VDWWRUQH\ZDVQRWSUHVHQW
$WWKHHDUOLHUDSSHDOWRWKLV&RXUWZHYDFDWHGWKHGLVWULFW
FRXUW¶VRUGHUJUDQWLQJKDEHDVUHOLHIDQGUHPDQGHGWKHFDVHIRU
DQHYLGHQWLDU\KHDULQJ$WWKDWKHDULQJWKHGLVWULFWFRXUWZDV
GLUHFWHGWRUHYLHZWKHUROHRI7\-RQHVDQDOOHJHGDWWRUQH\
IURP &DOLIRUQLD 7\ -RQHV ZDV SUHVHQW DW WKH WLPH WKH
VXSSOHPHQWDOLQVWUXFWLRQZDVJLYHQEXWLWZDVXQFOHDUZKHWKHU
KHZDVOLFHQVHGWRSUDFWLFHODZ)UHQFKY-RQHV1R
:/DW ± WK&LU-XO\
$WWKHHQVXLQJHYLGHQWLDU\KHDULQJWKHGLVWULFWFRXUWOHDUQHG
-RQHVZDVQRWDQDWWRUQH\DQGZDVSUHVHQWRQO\WRREVHUYH
&RUQHOLXV3LWWVRQHRI)UHQFK¶VDWWRUQH\V$IWHUILQGLQJWKDW
7\ -RQHV ZDV QRW DQ DWWRUQH\ WKH GLVWULFW FRXUW KHOG WKDW
)UHQFKZDVGHQLHGUHSUHVHQWDWLRQGXULQJDFULWLFDOVWDJHRIKLV
WULDO DQG JUDQWHG KLV SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV
)UHQFKY-RQHV)6XSSG ('0LFK
1R )UHQFKY-RQHV
IDYRURIWKHFRQFOXVLRQWKDWWKHGHIHQGDQW¶VULJKWWRDIDLUWULDO
DQGLPSDUWLDOMXU\KDVEHHQYLRODWHG´ 8QLWHG6WDWHVY6FRWW
)G WK&LU 7KHWULDOMXGJH¶VRPLVVLRQ
RIWKH³KRQHVWFRQYLFWLRQV´FRPSRQHQWLVHYHQPRUHWURXEOLQJ
EHFDXVH DQ DSSURSULDWH FKDUJH ZDV LQFOXGHG LQ WKH ILUVW
VXSSOHPHQWDOLQVWUXFWLRQJLYHQWRWKHMXU\ -$DW 6XFK
DQRPLVVLRQULVNVWKHMXURUVEHOLHYLQJWKHLUUHVSRQVLELOLWLHV
KDYHFKDQJHG
)XUWKHUPRUH WKH WULDO MXGJH¶V RPLVVLRQ RI WKH ³KRQHVW
FRQYLFWLRQV´ FRPSRQHQW ZDV DPSOLILHG E\ WKH WULDO MXGJH
WHOOLQJWKHMXURUVWKUHHVHSDUDWHWLPHVWKH\WRRNDQ RDWK WR
UHDFKDYHUGLFW -$DW± :KLOHXQLQWHQWLRQDOWKHWULDO
MXGJH¶V LQVWUXFWLRQ HPSKDVL]HG WKH MXURUV GXW\ WR UHDFK D
XQDQLPRXV YHUGLFW ZLWKRXW DVVXULQJ WKHP WKDW GLVVHQW ZDV
DFFHSWDEOH6HH%XUJRV)GDW
7KHWLPHOLQHRIWKHMXU\¶VGHOLEHUDWLRQVXJJHVWVWKDWWKH
WKLUG VXSSOHPHQWDO LQVWUXFWLRQ KDG DQ HIIHFW 2QFH WKH\
UHFHLYHGWKHFDVHWKHMXU\GHOLEHUDWHGIRUWKUHHGD\V'XULQJ
WKDW WLPH WKH\ VHQW RXW WKUHH LQFUHDVLQJO\ HPSKDWLF QRWHV
VD\LQJWKH\ZHUHGHDGORFNHGDQGFRXOGQRWUHDFKDYHUGLFW
(YHQ WKRXJK WKH WULDO MXGJH WZLFH JDYH WKHP D VWDQGDUG
GHDGORFNHGMXU\ LQVWUXFWLRQWKHMXU\FRXOGVWLOOQRWUHDFKD
YHUGLFW <HW OHVV WKDQ WZR KRXUV DIWHU UHFHLYLQJ WKH WKLUG
VXSSOHPHQWDO LQVWUXFWLRQ WKH MXURUV UHWXUQHG D JXLOW\ EXW
PHQWDOO\LOOYHUGLFWRQDOOFRXQWV
,QOLJKWRIWKHVHIDFWVZHFRQFOXGHWKHWULDOMXGJH¶VWKLUG
VXSSOHPHQWDO LQVWUXFWLRQ KDG D VXEVWDQWLDO DQG LQMXULRXV
LQIOXHQFHRQWKHMXU\¶VYHUGLFWWKDWUHVXOWHGLQSUHMXGLFHWR
)UHQFK
,,,&RQFOXVLRQ
$W WKH HYLGHQWLDU\ KHDULQJ ZH RUGHUHG LQ WKLV FDVH WKH
GLVWULFWFRXUWGHWHUPLQHG)UHQFKGLGQRWKDYHFRXQVHOGXULQJ
WKH WULDO MXGJH¶V VXSSOHPHQWDO MXU\ LQVWUXFWLRQ %HFDXVH
)UHQFKZDVZLWKRXWFRXQVHOGXULQJDFULWLFDOVWDJHRIKLVWULDO
WKHGLVWULFWFRXUWFRUUHFWO\JUDQWHG)UHQFK¶VSHWLWLRQIRUDZULW
RIKDEHDVFRUSXV7KHMXGJPHQWRIWKH86'LVWULFW&RXUWIRU

-- 2 of 8 --

)UHQFKY-RQHV 1R
LL WKDWMXURUVKDYHDGXW\WRFRQVXOWZLWKRQHDQRWKHU
DQGWRGHOLEHUDWHZLWKDYLHZWRUHDFKLQJDQDJUHHPHQW
LI LW FDQ EH GRQH ZLWKRXW YLROHQFH WR LQGLYLGXDO
MXGJPHQW
LLL WKDWHDFKMXURUPXVWGHFLGHWKHFDVHIRUKLPVHOIRU
KHUVHOIEXWRQO\DIWHUDQLPSDUWLDOFRQVLGHUDWLRQRIWKH
HYLGHQFHZLWKWKHRWKHUMXURUV
LY WKDWLQWKHFRXUVHRIGHOLEHUDWLRQVDMXURUVKRXOG
QRW KHVLWDWH WR UHH[DPLQH KLV RU KHU RZQ YLHZV DQG
FKDQJH DQ RSLQLRQ LI WKH MXURU LV FRQYLQFHG LW LV
HUURQHRXVDQG
Y WKDW QR MXURU VKRXOG VXUUHQGHU KLV RU KHUKRQHVW
FRQYLFWLRQDVWRWKHZHLJKWRUHIIHFWRIWKHHYLGHQFH
VROHO\EHFDXVHRIWKHRSLQLRQRIWKHRWKHUMXURUVRUIRU
WKHPHUHSXUSRVHRIUHWXUQLQJDYHUGLFW
E ,ILWDSSHDUVWRWKHFRXUWWKDWWKHMXU\KDVEHHQXQDEOH
WRDJUHHWKHFRXUWPD\UHTXLUHWKHMXU\WRFRQWLQXHWKHLU
GHOLEHUDWLRQV DQG PD\ JLYH RU UHSHDW DQ LQVWUXFWLRQ DV
SURYLGHGLQSDUDJUDSK D 7KHFRXUWVKDOOQRWUHTXLUHRU
WKUHDWHQ WR UHTXLUH WKH MXU\ WR GHOLEHUDWH IRU DQ
XQUHDVRQDEOHOHQJWKRIWLPHRUIRUXQUHDVRQDEOHLQWHUYDOV
F 7KHMXU\PD\EHGLVFKDUJHGZLWKRXWKDYLQJDJUHHG
XSRQDYHUGLFWLILWDSSHDUVWKDWWKHUHLVQRUHDVRQDEOH
SUREDELOLW\RIDJUHHPHQW
3HRSOHY3ROOLFN0LFK±1:G

7KHWULDOMXGJH¶VVXSSOHPHQWDOLQVWUXFWLRQGLGQRWUHPLQG
MXURUVWKH\VKRXOGQRWJLYHXSWKHLUKRQHVWFRQYLFWLRQVVROHO\
EHFDXVHRIWKHRSLQLRQRIWKHRWKHUMXURUVRULQRUGHUWRUHDFK
DYHUGLFW -$DW± ([FOXGLQJWKLVDVSHFWRIDQ$OOHQ
LQVWUXFWLRQLQFUHDVHVLWVFRHUFLYHHIIHFW6HH8QLWHG6WDWHVY
%XUJRV )G ± WK &LU -LPLQH] Y
0\HUV)GQ WK&LU ³$WULDOFRXUW¶V
IDLOXUHWRJLYHVXFKDFDXWLRQDU\LQVWUXFWLRQZHLJKVKHDYLO\LQ
1R )UHQFKY-RQHV
7KHUH ZDV QR GLVSXWH )UHQFK FRPPLWWHG WKH VKRRWLQJV ,QVWHDG WKH
LVVXH DW WULDO ZDV )UHQFK¶V PHQWDO VWDWH DW WKH WLPH RI WKH VKRRWLQJV $W
WULDO )UHQFK SUHVHQWHG H[SHUW WHVWLPRQ\ DQG RWKHU HYLGHQFH WR VKRZ KH
ZDV OHJDOO\ LQVDQH RQ WKH GD\ RI WKH VKRRWLQJV EHFDXVH DQ HUURQHRXVO\
SUHVFULEHG RYHUGRVH RI D SRZHUIXO K\SHUWHQVLRQ GUXJ KDG FRPELQHG ZLWK
D SUHH[LVWLQJ PHQWDO GLVRUGHU WR PDNH KLP SDUDQRLG DQG SV\FKRWLF ,Q
UHVSRQVH WKH JRYHUQPHQW SUHVHQWHG H[SHUW WHVWLPRQ\ WKDW )UHQFK ZDV
OHJDOO\ VDQH RQ WKH GD\ RI WKH VKRRWLQJV
0LFKLJDQ ODZ DOORZV D YHUGLFW RI ³JXLOW\ EXW PHQWDOO\ LOO´ 6HH 0LFK
&RPS /DZV † 7R UHWXUQ VXFK D YHUGLFW D MXU\ PXVW ILQG WKH
IROORZLQJ EH\RQG D UHDVRQDEOH GRXEW WKH GHIHQGDQW LV JXLOW\ RI DQ
RIIHQVH WKH GHIHQGDQW ZDV PHQWDOO\ LOO DW WKH WLPH RI WKH RIIHQVH
WKH GHIHQGDQW ZDV QRW OHJDOO\ LQVDQH DW WKH WLPH RI WKH RIIHQVH 6HH
0LFK &RPS /DZV † $ SHUVRQ IRXQG JXLOW\ EXW PHQWDOO\ LOO LV
VHQWHQFHG WKH VDPH DV LI KH ZHUH VLPSO\ IRXQG JXLOW\ RI WKH RIIHQVH
0LFK &RPS /DZV † 7KH RQO\ GLIIHUHQFH EHWZHHQ WKH WZR
YHUGLFWV LV WKDW WKH GHSDUWPHQW RI FRUUHFWLRQV LV UHVSRQVLEOH IRU HYDOXDWLQJ
WKH GHIHQGDQW DQG SURYLGLQJ DQ\ UHTXLUHG SV\FKLDWULF WUHDWPHQW 6HH LG
:LWK WKLV DSSHDO ZH GHFLGH ZKHWKHU D GHIHQGDQW ZKRVH
ODZ\HU ZDV QRW SUHVHQW ZKHQ WKH WULDO MXGJH JDYH D
VXSSOHPHQWDOLQVWUXFWLRQWRDGHDGORFNHGMXU\LVHQWLWOHGWR
KDEHDVUHOLHI)LQGLQJ3HWLWLRQHU)UHQFKZDVGHQLHGFRXQVHO
GXULQJDFULWLFDOVWDJHRIKLVWULDOZHDIILUPWKHGLVWULFWFRXUW¶V
JUDQWRIDZULWRIKDEHDVFRUSXV
,
2Q 6HSWHPEHU )UHQFK VKRW IRXU IHOORZ XQLRQ
RIILFLDOV DW WKH )RUG 0RWRU &RPSDQ\ 5RXJH IDFLOLW\ LQ
'HDUERUQ0LFKLJDQ$IWHUWULDOWRDMXU\)UHQFKZDVIRXQG
JXLOW\EXWPHQWDOO\LOORIRQHFRXQWRIILUVWGHJUHHPXUGHU
0LFK&RPS/DZV†RQHFRXQWRIVHFRQGGHJUHH
PXUGHU0LFK&RPS/DZV†WZRFRXQWVRIDVVDXOW
ZLWKLQWHQWWRFRPPLWPXUGHU0LFK&RPS/DZV†
DQG RQH FRXQW RI SRVVHVVLRQ RI D ILUHDUP GXULQJ WKH
FRPPLVVLRQRIDIHORQ\0LFK&RPS/DZV†E7KH
0LFKLJDQWULDOFRXUWVHQWHQFHG)UHQFKWROLIHLPSULVRQPHQW
ZLWKRXWSDUROHIRUWKHILUVWGHJUHHPXUGHUFRQYLFWLRQILIWHHQ
WRWKLUW\\HDUVLPSULVRQPHQWIRUWKHHDFKRIWKHVHFRQGGHJUHH
PXUGHUDQGDVVDXOWZLWKLQWHQWWRPXUGHUFRQYLFWLRQVDQGWZR

-- 3 of 8 --

)UHQFKY-RQHV 1R
\HDUVFRQVHFXWLYHLPSULVRQPHQWIRUWKHILUHDUPFRQYLFWLRQ
$WWULDOWZRDWWRUQH\V&RUQHOLXV3LWWVDQG0RQVH\:LOVRQ
UHSUHVHQWHG )UHQFK 7\ -RQHV ZDV DOVR SUHVHQW DW GHIHQVH
FRXQVHO¶VWDEOHIRUSRUWLRQVRIWKHWULDO
7KH FRQIXVLRQ VXUURXQGLQJ WKLV FDVH VWHPV IURP
UHSUHVHQWDWLRQVPDGHE\3LWWVDQG:LOVRQ$WWKHEHJLQQLQJ
RIWKHWULDO3LWWVLQWURGXFHG-RQHVWRWKHSURVHFXWRUDQGWULDO
MXGJHDVDQDWWRUQH\IURP&DOLIRUQLDZKRVSHFLDOL]HGLQMXU\
VHOHFWLRQ3LWWVVDLG-RQHVZDVSUHVHQWWRDVVLVWZLWKWKHWULDO
%DVHGRQ3LWWV¶VUHSUHVHQWDWLRQWKHWULDOMXGJHDOORZHG-RQHV
WRUHPDLQDWWKHGHIHQVHWDEOH
'XULQJMXU\VHOHFWLRQ3LWWVLQWURGXFHG-RQHVDV³FRXQVHO
IURP&DOLIRUQLD´ZKRZDVDVVLVWLQJZLWKWKHWULDO-RQHVZDV
SUHVHQWDWWKHGHIHQVHWDEOHHYHU\GD\RIWULDOEXWQHYHUVSRNH
LQWKHSUHVHQFHRIWKHMXU\
$WWKHHYLGHQWLDU\KHDULQJKHOGLQWKLVPDWWHUWKHGLVWULFW
FRXUWOHDUQHG-RQHVZDVQRWDOLFHQVHGDWWRUQH\:KLOHKHKDG
DWWHQGHG RQH \HDU RI ODZ VFKRRO DW 1HZ <RUN 8QLYHUVLW\
-RQHVZRUNHGDVDPRWLRQSLFWXUHFRQVXOWDQWDQGVFUHHQZULWHU
LQ/RV$QJHOHV-RQHVREVHUYHGWKHWULDODVEDFNJURXQGIRU
WKHGHYHORSPHQWRIDWHOHYLVLRQVHULHVEDVHGRQWKH'HWURLW
OHJDOV\VWHP
$WWKHHYLGHQWLDU\KHDULQJ3LWWVWHVWLILHGWKDW-RQHVWROGKLP
WKDWKHZDVDODZ\HU$OWKRXJK3LWWVGLGQRWLQWHQGIRU-RQHV
WRSDUWLFLSDWHLQWKHWULDO3LWWVVDLGKHLQWURGXFHG-RQHVDV
³FRXQVHOIURP&DOLIRUQLD´WRJLYHWKHLPSUHVVLRQRIDODUJH
GHIHQVHWHDP
)UHQFK¶V WULDO WRRN PRUH WKDQ WZR ZHHNV EHIRUH EHLQJ
VXEPLWWHGWRWKHMXU\$IWHUUHFHLYLQJWKHLULQVWUXFWLRQVDQG
FKRRVLQJDIRUHSHUVRQWKHMXU\UHFHVVHGRQ7KXUVGD\$SULO
7KHMXU\UHFRQYHQHGDQGEHJDQGHOLEHUDWLQJWKH
PRUQLQJRI)ULGD\$SULO'XULQJWKDWGD\WKHMXU\
WZLFHUHTXHVWHGFRSLHVRIWULDOPDWHULDOV2QERWKRFFDVLRQV
WKHSURVHFXWRU:LOVRQDQGWKHWULDOMXGJHGLVFXVVHGWKHQRWHV
DQGVHQWWKHUHTXHVWHGPDWHULDOVWRWKHMXU\
1R )UHQFKY-RQHV
6XOOLYDQ KHOG WKDW ³DQ\ VXEVWDQWLDO GHSDUWXUH´ IURP $%$ VWDQGDUG
LQVWUXFWLRQ ZRXOG EH JURXQGV IRU UHYHUVLEOH HUURU 6XOOLYDQ 0LFK
DW 1:G DW ,Q 3HRSOH Y +DUGLQ 0LFK
1:G WKH 0LFKLJDQ 6XSUHPH &RXUW KHOG WKDW VXEVWDQWLDO
GHYLDWLRQ IURP $%$ VWDQGDUG MXU\ LQVWUXFWLRQ RQO\ ZDUUDQWHG UHYHUVDO
LI WKH JLYHQ LQVWUXFWLRQ ZDV XQGXO\ FRHUFLYH +DUGLQ 0LFK DW
± 1:G DW ,Q GHFLGLQJ LI DQ LQVWUXFWLRQ ZDV XQGXO\
FRHUFLYH D FRXUW FRQVLGHUV ZKHWKHU WKH LQVWUXFWLRQ FDQ FDXVH D MXURU
WR DEDQGRQ KLV FRQVFLHQWLRXV GLVVHQW DQG GHIHU WR WKH PDMRULW\ LQ RUGHU WR
UHDFK DQ DJUHHPHQW ZKHWKHU WKH WULDO FRXUW UHTXLUHG RU WKUHDWHQHG WR
UHTXLUH WKH MXU\ WR GHOLEHUDWH IRU DQ XQUHDVRQDEOH OHQJWK RI WLPH RU IRU
XQUHDVRQDEOH LQWHUYDOV RU ZKHWKHU WKH LQVWUXFWLRQV FDOO IRU WKH MXU\ WR
H[HUFLVH LWV FLYLF GXW\ LQ UHDFKLQJ D XQDQLPRXV YHUGLFW FRQWDLQV WKH
PHVVDJH WKDW WKHLU IDLOXUH WR UHDFK D YHUGLFW LV D IDLOXUH RI WKH MXU\¶V
SXUSRVH ,G DW 1:G DW
%
:HDOVRQRWHWKDWWKHWULDOMXGJH¶VVXSSOHPHQWDOLQVWUXFWLRQ
VLJQLILFDQWO\GHYLDWHGIURPWKHPRGHO0LFKLJDQLQVWUXFWLRQ
DQGOLNHO\KDGDVXEVWDQWLDODQGLQMXULRXVLQIOXHQFH RQ WKH
MXU\¶VYHUGLFW6HH%DUNHUY<XNLQV)G±
WK &LU KROGLQJ WKH SHWLWLRQHU PHW † G ¶V
³XQUHDVRQDEOH DSSOLFDWLRQ´ VWDQGDUG E\ VKRZLQJ WKH WULDO
FRXUW¶V IDLOXUH WR JLYH D SURSHU MXU\ LQVWUXFWLRQ KDG D
VXEVWDQWLDO DQG LQMXULRXV HIIHFW RQ WKH MXU\¶V YHUGLFW ,Q
6XOOLYDQY3HRSOH0LFK1:G
0LFKLJDQDGRSWHGWKH$PHULFDQ%DU$VVRFLDWLRQ¶V ³$%$´
VWDQGDUGMXU\LQVWUXFWLRQIRUDGGUHVVLQJDGHDGORFNHGMXU\
6XOOLYDQ 0LFK DW ± 1:G DW
0LFKLJDQ DGRSWHG WKH $%$¶V VWDQGDUG LQVWUXFWLRQ WR
PLQLPL]H DQ\ FRHUFLYH HIIHFW RI MXU\ LQVWUXFWLRQV JLYHQ
SXUVXDQWWR$OOHQY8QLWHG6WDWHV86 $W
WKHWLPHRI)UHQFK¶VWULDO$%$VWDQGDUGMXU\LQVWUXFWLRQ
UHDG
D %HIRUHWKHMXU\UHWLUHVIRUGHOLEHUDWLRQWKHFRXUWPD\
JLYHDQLQVWUXFWLRQZKLFKLQIRUPVWKHMXU\
L WKDW LQ RUGHU WR UHWXUQ D YHUGLFW HDFK MXURUPXVW
DJUHHWKHUHWR

-- 4 of 8 --

)UHQFKY-RQHV 1R
VWDWLQJWKDW³WKHULJKWWRFRXQVHOLVμVREDVLFWRDIDLUWULDOWKDW
>LWV@ LQIUDFWLRQ FDQ QHYHU EH WUHDWHG DV KDUPOHVV HUURU¶´
3HQVRQY2KLR86 TXRWLQJ&KDSPDQY
&DOLIRUQLD 86 $V WKH &RXUW PRVW
UHFHQWO\ VWDWHG LQ D KDEHDV FDVH ³>W@KH H[LVWHQFH RI
>VWUXFWXUDO@GHIHFWV±GHSULYDWLRQRIWKHULJKWWRFRXQVHOIRU
H[DPSOH±UHTXLUHV DXWRPDWLF UHYHUVDO RI WKH FRQYLFWLRQ
EHFDXVH WKH\ LQIHFW WKH HQWLUH WULDO SURFHVV´ %UHFKW Y
$EUDKDPVRQ86±
)XUWKHUPRUHWKHDSSHOODQWZURQJO\FKDUDFWHUL]HV5XVKHQ
,Q 5XVKHQ WKH &RXUW GLG QRW VD\ KDUPOHVV HUURU DQDO\VLV
DSSOLHVWRHYHU\RFFXUUHQFHRIDWWRUQH\DEVHQFHDWDFULWLFDO
VWDJH RI WULDO ,QVWHDG WKH &RXUW KHOG WKDW H[ SDUWH
FRPPXQLFDWLRQV EHWZHHQ D MXGJH DQG MXURU VKRXOG EH
DQDO\]HG IRU KDUPOHVV HUURU EHFDXVH ³μLW LV YLUWXDOO\
LPSRVVLEOHWRVKLHOGMXURUVIURPHYHU\FRQWDFWRULQIOXHQFH
WKDWPLJKWWKHRUHWLFDOO\DIIHFWWKHLUYRWH¶´5XVKHQ86
DW ± TXRWLQJ 6PLWK Y 3KLOOLSV 86

7KH SUHVHQW FDVH LV YDVWO\ GLIIHUHQW IURP WKH LQFLGHQWDO
FRQWDFWEHWZHHQDMXGJHDQGMXURUDWLVVXHLQ5XVKHQ,QWKLV
FDVHWKHWULDOMXGJHGHOLYHUHGDVXSSOHPHQWDOLQVWUXFWLRQWRD
GHDGORFNHG MXU\ )UHQFK¶V DWWRUQH\V GLG QRW KDYH DQ
RSSRUWXQLW\WRUHVSRQGWRWKHMXU\¶VQRWHQRUZHUHWKH\SUHVHQW
ZKHQWKHWULDOMXGJHJDYHWKHVXSSOHPHQWDOLQVWUXFWLRQ7KH
XQFHUWDLQW\RIWKHSUHMXGLFH)UHQFKVXIIHUHGEHFDXVHKHZDV
QRWUHSUHVHQWHGE\FRXQVHOGXULQJWKLVFULWLFDOVWDJHRIKLVWULDO
PDNHVWKHRXWFRPHRIKLVWULDOXQUHOLDEOH6HH5RH86
DW&URQLF86DWQ
&URQLFFRUUHFWO\VXPPDUL]HVIHGHUDOODZZKHQLWVWDWHVWKDW
DEVHQFHRIFRXQVHOGXULQJDFULWLFDOVWDJHRIDWULDODPRXQWVWR
FRQVWLWXWLRQDOHUURU&URQLF86DWQ,QOLJKWRI
FOHDUIHGHUDOODZWKH0LFKLJDQFRXUWVXQUHDVRQDEO\DSSOLHG
KDUPOHVV HUURU DQDO\VLV WR )UHQFK¶V GHSULYDWLRQ RI FRXQVHO
GXULQJ WKH VXSSOHPHQWDO LQVWUXFWLRQ 7KH GLVWULFW FRXUW
SURSHUO\JUDQWHGWKHZULWRIKDEHDVFRUSXV
1R )UHQFKY-RQHV
7KH UHOHYDQW SDUW RI WKH WULDO MXGJH¶V WKLUG LQVWUXFWLRQ WR WKH MXU\ LV
DV IROORZV
7+( &2857 1RZ ODGLHV DQG JHQWOHPHQ , PXVW UHPLQG \RX
WKDW \RX GLG WDNH DQ RDWK WR UHQGHU D WUXH DQG MXVW YHUGLFW %XW LI
\RX DUH WR EH H[SHFWHG WR UHQGHU D YHUGLFW \RX PXVW
FRPPXQLFDWH DQG \RX PXVW WDON ZLWK HDFK RWKHU
7KLV FDVH ODVWHG KRZ PDQ\ GD\V 0U +XWWLQJ"
$SSUR[LPDWHO\ GD\V"
05 +877,1* )RXUWHHQ GD\V WULDO )RU MXU\ VHOHFWLRQ ±
/DWHRQ)ULGD\DIWHUQRRQWKHMXU\VHQWRXWDWKLUGQRWHWR
ZKLFKWKHWULDOMXGJHGLGQRWLPPHGLDWHO\UHVSRQG,QVWHDG
WKHWULDOMXGJHUHFHVVHGWKHWULDODQGH[FXVHGWKHMXU\IRUWKH
ZHHNHQG
2QWKHPRUQLQJRI0RQGD\0D\WKHWULDOMXGJH
UHDGWKHQRWHWR3LWWVDQGWKHSURVHFXWRU³:HFDQ¶WUHDFKD
XQDQLPRXVGHFLVLRQ2XUPLQGVDUHVHW´3LWWVUHTXHVWHGD
PLVWULDOEXWWKHWULDOMXGJHUHDGWKHMXU\0LFKLJDQ¶VVWDQGDUG
GHDGORFNHGMXU\LQVWUXFWLRQ7KHMXU\FRQWLQXHGWRGHOLEHUDWH
XQWLOODWHDIWHUQRRQZKHQWKH\VHQWRXWDVHFRQGQRWH7KH
VHFRQGQRWHDOVRVDLGWKHMXU\ZDVXQDEOHWRUHDFKDGHFLVLRQ
7KHWULDOMXGJHDJDLQUHFHVVHGWKHWULDODQGH[FXVHGWKHMXU\
IRUWKHGD\
$W DP RQ 0D\ WKH WULDO MXGJH DJDLQ
LQVWUXFWHG WKH MXU\ DQG GLUHFWHG WKHP WR FRQWLQXH
GHOLEHUDWLRQV$IWHUFRQWLQXLQJGHOLEHUDWLRQVWKHMXU\VHQWRXW
DWKLUGQRWHDWDP³:HDUHQRWDEOHWRUHDFKDYHUGLFW
:H DUH QRW JRLQJ WR UHDFK D YHUGLFW´ 7KH WULDO MXGJH
UHVSRQGHGE\VHQGLQJWKHMXU\WROXQFKDQGLQVWUXFWLQJWKH
SDUWLHVWRDSSHDUDWSP
$WSPQHLWKHU3LWWVQRU:LOVRQKDGUHWXUQHGWRWKH
FRXUWURRP7KHWULDOMXGJHDVNHG-RQHVZKRZDVSUHVHQWWR
FRQWDFWWKHWZRDWWRUQH\V-RQHVZDVXQDEOHWRFRQWDFW3LWWV
RU:LOVRQ$WSPZLWKRXW3LWWVRU:LOVRQSUHVHQWWKH
WULDOMXGJHEURXJKWWKHMXU\LQDQGJDYHWKHPDVXSSOHPHQWDO
MXU\LQVWUXFWLRQ8QOLNHWKHILUVWWZRLQVWUXFWLRQVWKHWKLUG
LQVWUXFWLRQZDVQRWWKHVWDQGDUGGHDGORFNHGMXU\LQVWUXFWLRQ

-- 5 of 8 --

)UHQFKY-RQHV 1R
7+( &2857 $OO ULJKW 6R LW ZRXOGQ¶W EH XQFRPPRQ IRU
GHOLEHUDWLRQV WR JR RQ IRU VRPH WLPH DQG , PLJKW UHPLQG \RX WKDW
\RX EHJDQ WR GHOLEHUDWH , WKLQN )ULGD\ DQG , GRQ¶W NQRZ KRZ
\RX FDQ FRPH WR WKH FRQFOXVLRQ WKDW \RX DUH QRW JRLQJ WR UHDFK
D YHUGLFW
%DVHG XSRQ \RXU RDWK WKDW \RX ZRXOG UHDFK D WUXH DQG MXVW
YHUGLFW ZH H[SHFW \RX ZLOO FRPPXQLFDWH $V , VWDWHG EHIRUH
H[FKDQJH LGHDV *LYH \RXU YLHZV *LYH \RXU RSLQLRQV DQG WU\
WR FRPH WR D YHUGLFW LI DW DOO SRVVLEOH
%XW LI \RX GRQ¶W FRPPXQLFDWH \RX NQRZ WKDW \RX FDQ¶W
UHDFK D YHUGLFW $QG ZKHQ \RX WRRN WKH RDWK WKDW ZDV RQH RI WKH
SURPLVHV WKDW \RX PDGH E\ UDLVLQJ \RXU KDQG WDNLQJ WKH RDWK
WKDW \RX ZRXOG GHOLEHUDWH XSRQ D YHUGLFW WR WU\ WR UHDFK D
YHUGLFW $QG ZH WROG \RX DW WKH RXWVHW LW ZRXOG QRW EH DQ HDV\
WDVN EXW ZH NQRZ WKDW \RX FDQ ULVH WR WKH RFFDVLRQ
6R ZH¶OO DVN WKDW \RX UHWXUQ WR WKH MXU\ URRP
7KDQN \RX
-$ DW ±
7KHWULDOMXGJHGLVPLVVHGWKHMXU\IRUWKHGD\DSSUR[LPDWHO\
RQHKRXUDIWHUJLYLQJWKHVXSSOHPHQWDOLQVWUXFWLRQ
7KHQH[WPRUQLQJ3LWWVUHTXHVWHGDPLVWULDOEHFDXVHKHIHOW
WKH WULDO MXGJH¶V VXSSOHPHQWDO LQVWUXFWLRQ ZDV FRHUFLYH
:KLOH3LWWVZDVDUJXLQJIRUDPLVWULDOWKHMXU\UHWXUQHGLWV
YHUGLFW
)UHQFKPRYHGWKH0LFKLJDQWULDOFRXUWWRRUGHUDQHZWULDO
DUJXLQJKHZDVSUHMXGLFHGEHFDXVHKLVDWWRUQH\VKDGQRWEHHQ
SUHVHQWGXULQJWKHWKLUGVXSSOHPHQWDOMXU\LQVWUXFWLRQ7KH
WULDO MXGJH QRWHG )UHQFK¶V DUJXPHQW KDG VRPH PHULW EXW
GHQLHGWKHPRWLRQIRUDQHZWULDO
2Q-XO\WKH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHG
WKHSHWLWLRQHU¶VFRQYLFWLRQV7KHFRXUWKHOGWKDWWKHDEVHQFH
RI GHIHQVH FRXQVHO GXULQJ D FULWLFDO VWDJH RI WKH WULDO ZDV
VXEMHFWWRKDUPOHVVHUURUDQDO\VLV7KHFRXUWRIDSSHDOVIRXQG
WKHHUURUKDUPOHVVLQ)UHQFK¶VFDVH2Q6HSWHPEHU
WKH0LFKLJDQ6XSUHPH&RXUWGHQLHGWKHSHWLWLRQHUOHDYHWR
DSSHDO
1R )UHQFKY-RQHV
DFFXVHGLVGHQLHGFRXQVHODWDFULWLFDOVWDJHRIKLVWULDO´LVDQ
DFFXUDWH VWDWHPHQW RI ODZ ,G DW %HFDXVH :LOOLDPV
LQVWUXFWV FRXUWV WR UHO\ RQO\ RQ WKH KROGLQJ RI FDVHV ZKHQ
GHFLGLQJFOHDUO\HVWDEOLVKHGIHGHUDOODZIRUKDEHDVSHWLWLRQ
SXUSRVHV:LOOLDPV86DWWKHDSSHOODQWVD\VWKH
GLVWULFWFRXUWVKRXOGQRWKDYHUHOLHGRQWKLVVWDWHPHQWRIODZ
EHFDXVHWKHODQJXDJHZDVQRWDSSOLFDEOHWR&URQLF¶VXOWLPDWH
KROGLQJ
,QVWHDGWKHDSSHOODQWVD\VWKHIDFWVRIWKLVFDVHUHVHPEOH
WKRVHLQ5XVKHQY6SDLQ86 ,Q5XVKHQ
WKH&RXUWDSSOLHGKDUPOHVVHUURUDQDO\VLVWRDWULDOMXGJH¶VH[
SDUWHFRPPXQLFDWLRQVZLWKDMXURUDERXWWKHMXURU¶VSHUVRQDO
LQWHUDFWLRQZLWKDSROLFHLQIRUPDQWFXUUHQWO\WHVWLI\LQJEHIRUH
WKH MXURU 5XVKHQ 86 DW ± 1HLWKHU GHIHQVH
FRXQVHO QRU WKH SURVHFXWRU OHDUQHG RI WKH H[ SDUWH
FRPPXQLFDWLRQVXQWLODIWHUWKHWULDO
7KH5XVKHQ&RXUWIRXQGWKDWWKHSRVWWULDOKHDULQJKHOGRQ
WKHPDWWHUSURYLGHGVXIILFLHQWHYLGHQFHWKHFRPPXQLFDWLRQ
EHWZHHQWKHMXGJHDQGMXURUZDVLQQRFXRXVDQGWKDWQRELDV
LQIHFWHGWKHMXU\¶VGHOLEHUDWLRQV,G7KHDSSHOODQWVD\VWKH
&RXUW¶V XVH RI KDUPOHVV DQDO\VLV LQ 5XVKHQ VXSSRUWV KLV
DVVHUWLRQWKDWZHVKRXOGDQDO\]HWKHSUHVHQWFDVHIRUKDUPOHVV
HUURU
:H GLVDJUHH 'HVSLWH WKH DSSHOODQW¶V DWWHPSW WR
FKDUDFWHUL]H&URQLF¶VODQJXDJHDVGLFWDWKH&RXUWKDVRIWHQ
KHOGERWKEHIRUHDQGDIWHU&URQLFWKDWDEVHQFHRIFRXQVHO
GXULQJDFULWLFDOVWDJHRIDWULDOLVSHUVHUHYHUVLEOHHUURU6L[
\HDUVEHIRUH&URQLFWKH&RXUWKHOGLQ+ROORZD\Y$UNDQVDV
86 WKDW³ZKHQDGHIHQGDQWLVGHSULYHGRI
WKHSUHVHQFHDQGDVVLVWDQFHRIKLVDWWRUQH\HLWKHUWKURXJKRXW
WKH SURVHFXWLRQ RU GXULQJ D FULWLFDO VWDJH LQ DW OHDVW WKH
SURVHFXWLRQ RI D FDSLWDO RIIHQVH UHYHUVDO LV DXWRPDWLF´
+ROORZD\86DW FLWLQJ*LGHRQY:DLQZULJKW
86 DQG:KLWHY0DU\ODQG86
)RXU\HDUVDIWHU&URQLFWKH&RXUWUHLWHUDWHGWKDW
KDUPOHVVHUURUDQDO\VLVGRHVQRWDSSO\WR6L[WK$PHQGPHQW
FODLPVLQYROYLQJWKHDEVHQFHRIFRXQVHODWDFULWLFDOVWDJHE\

-- 6 of 8 --

)UHQFKY-RQHV 1R
7KH DSSHOODQW VD\V WKH IROORZLQJ FDVHV GHVFULEH VWUXFWXUDO HUURUV
EHFDXVH WKH\ LQYROYH WKH WRWDO GHSULYDWLRQ RI FRXQVHO *HGHUV Y 8QLWHG
6WDWHV 86 D WULDO FRXUW¶V RUGHU SUHYHQWLQJ D GHIHQGDQW
IURP FRQVXOWLQJ ZLWK KLV DWWRUQH\ DW DOO GXULQJ D UHFHVV EHWZHHQ KLV GLUHFW
DQG FURVVH[DPLQDWLRQ +HUULQJ Y 1HZ <RUN 86 WKH
WULDO FRXUW¶V UHIXVDO WR DOORZ FRXQVHO WR EH KHDUG LQ VXPPDWLRQ RI WKH
HYLGHQFH %URRNV Y 7HQQHVVHH 86 D VWDWXWH UHTXLULQJ
D GHIHQGDQW WR WHVWLI\ EHIRUH DQ\ RWKHU GHIHQVH HYLGHQFH ZDV SUHVHQWHG
GHSULYHG WKH GHIHQGDQW RI WKH DGYLFH RI FRXQVHO LQ PDNLQJ WKH GHFLVLRQ
:KLWH Y 0DU\ODQG 86 WKH GHQLDO RI FRXQVHO DW D
SUHOLPLQDU\ KHDULQJ ZKHUH D SOHD ZDV HQWHUHG *LGHRQ Y :DLQULJKW
86 WRWDO GHSULYDWLRQ RI WKH ULJKW WR FRXQVHO GXULQJ WULDO
+DPLOWRQ Y $ODEDPD 86 WKH GHQLDO RI FRXQVHO DW
DUUDLJQPHQW WKH VWDJH DW ZKLFK LQVDQLW\ PXVW EH SOHDGHG RU WKH GHIHQVH
IRUIHLWHG )HUJXVRQ Y *HRUJLD 86 D VWDWXWH SHUPLWWLQJ
WKH DGPLVVLRQ RQO\ RI WKH GHIHQGDQW¶V XQVZRUQ VWDWHPHQW DQG WKH GHQLDO
RI WKH ULJKW WR KDYH FRXQVHO H[DPLQH WKH GHIHQGDQW UHJDUGLQJ LW :LOOLDPV
Y .DLVHU 86 WKH UHIXVDO WR DSSRLQW FRXQVHO EHIRUH
HQWU\ RI WKH GHIHQGDQW¶V SOHD
VXIIHUHGDWRWDOGHSULYDWLRQRIFRXQVHO7KHDSSHOODQWVD\V
WKHSUHVHQWFDVHGRHVQRWLQYROYHWKHFRPSOHWHGHSULYDWLRQRI
FRXQVHO EHFDXVH WKH WULDO FRXUW¶V DFWLRQV GLG QRW SUHYHQW
FRXQVHOIURPDGYLVLQJ)UHQFK:LWKRXWVXFKDQDFWE\WKH
WULDOFRXUWWKHDSSHOODQWVD\V)UHQFK¶VODFNRIFRXQVHOGXULQJ
WKHVXSSOHPHQWDOLQVWUXFWLRQLVQRWDGHSULYDWLRQEHFDXVHLW
GRHVQRWIDOOZLWKLQDQ\RIWKHIDFWSDUDGLJPVWKH6XSUHPH
&RXUWGHVFULEHVDVGHSULYDWLRQVXQGHUWKH6L[WK$PHQGPHQW
$V IXUWKHU VXSSRUW IRU LWV SRVLWLRQ WKDW WKH GLVWULFW FRXUW
HUUHG WKH DSSHOODQW DUJXHV WKH GLVWULFW FRXUW¶V UHOLDQFH RQ
&URQLFLVPLVSODFHG,Q&URQLFWKH&RXUWUHYHUVHGWKHFRXUW
RIDSSHDOV¶LQIHUHQFHWKDWDGHIHQGDQWKDGUHFHLYHGLQHIIHFWLYH
DVVLVWDQFHRIFRXQVHOEHFDXVHRIWKHDWWRUQH\¶VLQH[SHULHQFH
OLPLWHGDFFHVVWRZLWQHVVHVDQGVKRUWWLPHWRLQYHVWLJDWHDQG
SUHSDUHIRUDFRPSOH[WULDO&URQLF86DW7KH
&RXUWUHPDQGHGWKHFDVHWRFRQVLGHUZKHWKHUVSHFLILFDOOHJHG
HUURUVPDGHE\GHIHQVHFRXQVHOZHUHVXIILFLHQWWRVXSSRUWDQ
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLP,GDW±7KH
DSSHOODQW DFNQRZOHGJHV &URQLF¶V VWDWHPHQW LQ GLFWD WKDW
³>W@KH SUHVXPSWLRQ WKDW FRXQVHO¶V DVVLVWDQFH LV HVVHQWLDO
UHTXLUHV >D FRXUW@ WR FRQFOXGH WKDW D WULDO LV XQIDLU LI WKH
1R )UHQFKY-RQHV
:H GHFLGH WKLV FDVH XQGHU WKH $('3$ EHFDXVH )UHQFK ILOHG KLV
SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV LQ 2FWREHU ZHOO DIWHU $('3$¶V
HIIHFWLYH GDWH RI $SULO 6HH %DUNHU Y <XNLQV )G
WK &LU
2Q 2FWREHU WKH SHWLWLRQHU ILOHG D SHWLWLRQ LQ
IHGHUDOFRXUWIRUDZULWRIKDEHDVFRUSXV2Q0DUFK
WKHGLVWULFWFRXUWJUDQWHGWKHZULW$VGLVFXVVHGDERYHWKH
ZDUGHQDSSHDOHGDQGZHYDFDWHGWKHGLVWULFWFRXUW¶VGHFLVLRQ
DQGUHPDQGHGIRUDQHYLGHQWLDU\KHDULQJ
1RZZLWKDIXOO\GHYHORSHGUHFRUGEHIRUHXVZHUHYLHZ
WKHGLVWULFWFRXUW¶VGHFLVLRQWRJUDQW)UHQFK¶VSHWLWLRQIRUD
ZULWRIKDEHDVFRUSXV$VJURXQGVIRUWKHZULW)UHQFKDUJXHV
WKDWWKH0LFKLJDQWULDOMXGJHGHQLHGKLVFRQVWLWXWLRQDOULJKWWR
WKHDVVLVWDQFHRIFRXQVHOZKHQLWVXSSOHPHQWHGLWVLQVWUXFWLRQ
WRWKHMXU\ZKHQQHLWKHURIKLVDWWRUQH\VZHUHSUHVHQW
,,
:HUHYLHZDGLVWULFWFRXUW¶VJUDQWRIKDEHDVUHOLHIGHQRYR
6HHHJ+DUSVWHUY2KLR)G WK&LU
,QGHWHUPLQLQJZKHWKHUWRLVVXHDKDEHDVZULWWKHGLVWULFW
FRXUW¶VUHYLHZRIDVWDWHFRXUWGHFLVLRQLVJRYHUQHGE\WKH
VWDQGDUGVVHWIRUWKLQWKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK
3HQDOW\$FWRI86&†HWVHT ³$('3$´
,G 7KH $('3$ RQO\ SURYLGHV KDEHDV UHOLHI IRU D VWDWH
SULVRQHULQFHUWDLQFLUFXPVWDQFHV
G $QDSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXVRQEHKDOI
RIDSHUVRQLQFXVWRG\SXUVXDQWWRWKHMXGJPHQWRID6WDWH
FRXUWVKDOOQRWEHJUDQWHGZLWKUHVSHFWWRDQ\FODLPWKDW
ZDVDGMXGLFDWHGRQWKHPHULWVLQ6WDWHFRXUWSURFHHGLQJV
XQOHVVWKHDGMXGLFDWLRQRIWKHFODLP±
UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU
LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\
HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH
&RXUWRIWKH8QLWHG6WDWHVRU

-- 7 of 8 --

)UHQFKY-RQHV 1R
UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ
XQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRIWKH
HYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ
86&† G
7KHTXHVWLRQRIZKHWKHUWKHWULDOMXGJHGHSULYHG)UHQFKRI
KLVULJKWWRFRXQVHOGXULQJWKHVXSSOHPHQWDOMXU\LQVWUXFWLRQ
LV D PL[HG TXHVWLRQ RI ODZ DQG IDFW 6HH 6WULFNODQG Y
:DVKLQJWRQ86 ,QDKDEHDVFDVHZH
DSSO\WKH³XQUHDVRQDEOHDSSOLFDWLRQ´SURQJRI† G WR
D PL[HG TXHVWLRQ RI ODZ DQG IDFW 6HH 86&
† G +DUSVWHU)GDW±
7KHUHFHQW6XSUHPH&RXUWGHFLVLRQRI:LOOLDPVY7D\ORU
86 FODULILHGWKHPHDQLQJRIWKHRSHUDWLYH
FODXVHVLQ† G :LOOLDPVVWDWHGWKDWIHGHUDOFRXUWVDUH
WRILQG³FOHDUO\HVWDEOLVKHG)HGHUDOODZ´LQWKHKROGLQJVRIWKH
6XSUHPH &RXUW DV RSSRVHG WR LWV GLFWD DW WKH WLPH RI WKH
UHOHYDQWVWDWHFRXUWGHFLVLRQ:LOOLDPV86DWVHH
DOVR+DUULVY6WRYDOO)G WK&LU
:LOOLDPVWKHQZHQWRQWRFODULI\WKHVLWXDWLRQVLQZKLFKD
FRXUWFRXOGJUDQWDZULWRIKDEHDVFRUSXVXQGHU† G
8QGHUWKH³FRQWUDU\WR´FODXVHDIHGHUDOKDEHDVFRXUW
PD\ JUDQW WKH ZULW LI WKH VWDWH FRXUW DUULYHV DW D
FRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\WKLV&RXUWRQD
TXHVWLRQ RI ODZ RU LI WKH VWDWH FRXUW GHFLGHV D FDVH
GLIIHUHQWO\ WKDQ WKLV &RXUW KDV RQ D VHW RI PDWHULDOO\
LQGLVWLQJXLVKDEOH IDFWV 8QGHU WKH ³XQUHDVRQDEOH
DSSOLFDWLRQ´FODXVHDIHGHUDOKDEHDVFRXUWPD\JUDQWWKH
ZULW LI WKH VWDWH FRXUW LGHQWLILHV WKH FRUUHFW JRYHUQLQJ
OHJDO SULQFLSOH IURP WKLV &RXUW¶V GHFLVLRQV EXW
XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH
SULVRQHU¶VFDVH
:LOOLDPV86DW±7KHUHIRUHZHORRNWRVHHLI
WKH0LFKLJDQFRXUWVKDYHXQUHDVRQDEO\DSSOLHGDJRYHUQLQJ
OHJDOSULQFLSOHLGHQWLILHGE\WKH6XSUHPH&RXUWZKHQWKH\
DSSOLHG KDUPOHVV HUURU DQDO\VLV WR )UHQFK¶V GHSULYDWLRQ RI
FRXQVHOGXULQJWKHVXSSOHPHQWDOLQVWUXFWLRQ
1R )UHQFKY-RQHV
$
%RWK SDUWLHV DJUHH WKDW ³WKH FRPSOHWH GHQLDO RI FRXQVHO
GXULQJ D FULWLFDO VWDJH RI D MXGLFLDO SURFHHGLQJ PDQGDWHV D
SUHVXPSWLRQRISUHMXGLFH´5RHY)ORUHV2UWHJD86
VHHDOVR8QLWHG6WDWHVY&URQLF86
Q ,QRXURUGHUUHPDQGLQJWKLVFDVHWRWKH
GLVWULFWFRXUWIRUDQHYLGHQWLDU\KHDULQJZHDJUHHGZLWKWKH
GLVWULFWFRXUWWKDWDVXSSOHPHQWDOMXU\LQVWUXFWLRQLVD³FULWLFDO
VWDJH´RIDFULPLQDOSURFHHGLQJ)UHQFK:/
DW FLWLQJ5RJHUVY8QLWHG6WDWHV86 DQG
6KLHOGV Y 8QLWHG 6WDWHV 86 VHH DOVR
&XUWLVY'XYDO)G VW&LU ,QRXUSUHYLRXV
GHFLVLRQ LQ WKLV PDWWHU ZH QRWHG WKDW WKH 0LFKLJDQ FRXUWV
FRQFHGHGWKDWWKHVXSSOHPHQWDOLQVWUXFWLRQZDVDFULWLFDOVWDJH
RIWKHWULDO6HH)UHQFK:/DW Q,Q
OLJKWRIRXUKROGLQJZHUHPDQGHGWKHFDVHWRGHWHUPLQHWKH
H[DFWQDWXUHRI-RQHV¶VSDUWLFLSDWLRQDWWKHWULDO
2QFHWKHHYLGHQWLDU\KHDULQJHVWDEOLVKHG-RQHVZDVQRWDQ
DWWRUQH\)UHQFKDUJXHGWKH6XSUHPH&RXUWKDV³XQLIRUPO\
IRXQGFRQVWLWXWLRQDOHUURUZLWKRXWDQ\VKRZLQJRISUHMXGLFH
ZKHQ FRXQVHO ZDV HLWKHU WRWDOO\ DEVHQW RU SUHYHQWHG IURP
DVVLVWLQJ WKH DFFXVHG GXULQJ D FULWLFDO VWDJH RI WKH
SURFHHGLQJ´ &URQLF 86 DW Q 6LQFH WKH
VXSSOHPHQWDOMXU\LQVWUXFWLRQZDVDFULWLFDOVWDJHRIWKHWULDO
)UHQFKVDLGUHYHUVDOVKRXOGEHDXWRPDWLF7KHGLVWULFWFRXUW
DJUHHGZLWK)UHQFK&LWLQJ&URQLFWKHGLVWULFWFRXUWIRXQGD
VWUXFWXUDO GHIHFW OLNH WKH GHSULYDWLRQ RI FRXQVHO GXULQJ D
FULWLFDO VWDJH RI WKH WULDO UHTXLUHG DXWRPDWLF UHYHUVDO 6HH
)UHQFK)6XSSGDW
0LFKLJDQ DUJXHV WKH GLVWULFW FRXUW HUUHG ZKHQ LW IRXQG
)UHQFK¶VODFNRIFRXQVHOGXULQJWKHVXSSOHPHQWDOLQVWUXFWLRQ
WREHDVWUXFWXUDOHUURU,QVWHDGWKHDSSHOODQWVD\V)UHQFK¶V
ODFNRIFRXQVHOGXULQJWKHVXSSOHPHQWDOLQVWUXFWLRQZDVDWULDO
HUURUVXEMHFWWRKDUPOHVVHUURUDQDO\VLV
,Q VXSSRUW RI KLV SRVLWLRQ WKH DSSHOODQW VD\V SUHYLRXV
6XSUHPH&RXUWGHFLVLRQVLQGLFDWHWKDWDQHUURUGXULQJWULDO
RQO\ UHTXLUHV DXWRPDWLF UHYHUVDO ZKHQ D GHIHQGDQW KDV

-- 8 of 8 --