The AI workspace for legal professionals
- Legal research with access to more than 1 million sources
- Document automation
- Matter management
- Hosted in the EU and Switzerland
Try it free for 14 days (10 questions/day during trial)
The AI workspace for legal professionals
Try it free for 14 days (10 questions/day during trial)
01-1018•02a0253p.06
=XULFK,QV&RHWDOY/RJLWUDQVHWDO 1R
VXEVWLWXWLRQRIWKHUHDOSDUW\LQLQWHUHVWLQP\RSLQLRQZRXOG
KDYHEHHQ³PHUHO\IRUPDO´LQWKHSUHVHQWFDVHDQGZRXOGQRW
KDYH³DOWHU>HG@WKHRULJLQDOFRPSODLQW¶VIDFWXDODOOHJDWLRQVDV
WRWKHHYHQWVRUSDUWLFLSDQWV´,QOLJKWRIWKHODFNRISUHMXGLFH
WR/RJLWUDQVWKHLQDGYHUWHQFHRI=XULFK,QVXUDQFH¶VPLVWDNH
DQGWKHUHODWLRQVKLSEHWZHHQ=XULFK,QVXUDQFHDQG$PHULFDQ
*XDUDQWHHDVVLVWHUFRUSRUDWLRQVXQGHUFRPPRQRZQHUVKLS,
ZRXOGKDYHEHHQLQFOLQHGWRFRQFOXGHWKDWVXEVWLWXWLRQZDV
DSSURSULDWHXQGHU5XOH D LQWKHSUHVHQWFDVH7KHFRXUW¶V
KROGLQJ WKDW =XULFK ,QVXUDQFH ODFNHG $UWLFOH ,,, VWDQGLQJ
KRZHYHUSUHFOXGHVFRQVLGHUDWLRQRIWKH5XOH D LVVXH
6HFRQG,QRWHWKDW=XULFK,QVXUDQFHDUJXHVRQDSSHDOWKDW
/RJLWUDQVZDLYHGLWVDELOLW\WRREMHFWWRWKHIDLOXUHWREULQJWKH
FDVHLQWKHQDPHRIWKHUHDOSDUW\LQLQWHUHVWE\ZDLWLQJXQWLO
RQO\ WZHQW\ GD\V EHIRUH WULDO DQG DIWHU WKH GHDGOLQH IRU
GLVSRVLWLYH PRWLRQV KDG SDVVHG EHIRUH UDLVLQJ WKH LVVXH
$OWKRXJKLWDSSHDUVWRPHWKDWWKLVDUJXPHQWKDVPHULWRXU
KROGLQJRQWKHJURXQGVRI$UWLFOH,,,VWDQGLQJPHDQVWKDWWKH
ZDLYHULVVXHOLNHWKH5XOH D LVVXHLVEH\RQGWKHVFRSHRI
RXUSRZHUWRDGMXGLFDWH
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
=85,&+ ,1685$1&(
&203$1<D6ZLVV
&RUSRUDWLRQDVXEURJHHRI
/HDU&RUSRUDWLRQD'HODZDUH
&RUSRUDWLRQ
3ODLQWLII$SSHOODQW
$0(5,&$1 *8$5$17((
/,$%,/,7< ,1685$1&(
&203$1<
0RYDQW$SSHOODQW
Y
/2*,75$16 ,1&25325$7('
HWDO
'HIHQGDQWV$SSHOOHHV
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1RV²5REHUW+&OHODQG
'LVWULFW-XGJH
$UJXHG$SULO
'HFLGHGDQG)LOHG-XO\
-- 1 of 6 --
=XULFK,QV&RHWDOY/RJLWUDQVHWDO 1R
7KH +RQRUDEOH -RVHSK 0 +RRG 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU WKH
(DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ
%HIRUH68+5+(,15,&+DQG*,/0$1&LUFXLW-XGJHV
+22''LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' $QQ & &KDOVWURP &/$86(1 0,//(5
*250$1&$))5(< :,7286&KLFDJR,OOLQRLVIRU
$SSHOODQWV 0LFKDHO - %ODFN %8(66(5 %/$&.
*5$+$0 %8(771(5 %ORRPILHOG +LOOV 0LFKLJDQ
'RQDOG5'LOORQ-U02))(77 ',//21%LUPLQJKDP
0LFKLJDQ IRU $SSHOOHHV 21 %5,() (GZDUG 0 .D\
&/$86(10,//(5*250$1&$))5(< :,7286
&KLFDJR,OOLQRLV3DXO'*DOHD)267(50($'2:6
%$//$5''HWURLW0LFKLJDQIRU$SSHOODQWV0LFKDHO-
%ODFN1HLO.'LVQH\%8(66(5%/$&.*5$+$0
%8(771(5%ORRPILHOG+LOOV0LFKLJDQ'RQDOG5'LOORQ
-U 02))(77 ',//21 %LUPLQJKDP 0LFKLJDQ IRU
$SSHOOHHV
+22''-GHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK
68+5+(,15,&+ - MRLQHG *,/0$1 - SS
GHOLYHUHGDVHSDUDWHFRQFXUULQJRSLQLRQ
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
-26(3+ 0 +22' 'LVWULFW -XGJH ,Q WKLV QHJOLJHQFH
DFWLRQ 3ODLQWLII =XULFK ,QVXUDQFH &RPSDQ\ ³=XULFK
6ZLW]HUODQG´ DQG0RYDQW$PHULFDQ*XDUDQW\ /LDELOLW\
,QVXUDQFH &RPSDQ\ ³$PHULFDQ *XDUDQW\´ DSSHDO WKH
GLVWULFWFRXUW¶VRUGHUVGHQ\LQJ=XULFK6ZLW]HUODQG¶VPRWLRQWR
VXEVWLWXWH$PHULFDQ*XDUDQWHHDVWKHUHDOSDUW\LQLQWHUHVW
DQGGHQ\LQJ=XULFK6ZLW]HUODQG¶VDQG$PHULFDQ*XDUDQWHH¶V
1R =XULFK,QV&RHWDOY/RJLWUDQVHWDO
DV VHW IRUWK LQ WKH DGYLVRU\ FRPPLWWHH QRWHV SHUPLWV WKH
LQIHUHQFHWKDWVXEVWLWXWLRQRIWKHUHDOSDUW\LQLQWHUHVWXQGHU
5XOH D FDQQRWEHXVHGWRVDYHDVXLWEURXJKWLQWKHQDPH
RIDSDUW\WKDWKDVVXIIHUHGQRLQMXU\ZKDWVRHYHU7KHOHDG
RSLQLRQKRZHYHUTXRWHVWKHHQWLUHDGYLVRU\FRPPLWWHHQRWH
LQPDNLQJWKLVSRLQW²LPSRUWLQJLQWKHSURFHVVFRQFHSWVRI
JRRGIDLWKDQG³XQGHUVWDQGDEOHPLVWDNH´WKDWKDYHQREHDULQJ
RQ WKH $UWLFOH ,,, VWDQGLQJ DQDO\VLV *LYHQ WKH GLIIHUHQFH
EHWZHHQWKH$UWLFOH,,,LVVXHVDQGWKH5XOHLVVXHVZKLFK
DUHSURSHUO\GLVWLQJXLVKHGLQWKHODWWHUSDUDJUDSKVRIWKHOHDG
RSLQLRQ,ZRXOGFDXWLRQDJDLQVWWKHVXJJHVWLRQWKDW$PHULFDQ
*XDUDQWHH¶V DOOHJHG ODFN RI YLJLODQFH DIIHFWHG WKH FRXUW¶V
$UWLFOH,,,VWDQGLQJDQDO\VLV 2SS
$OWKRXJKWKHTXHVWLRQRI$PHULFDQ*XDUDQWHH¶VYLJLODQFH
LQ SURWHFWLQJ LWV LQWHUHVWV LV QRW UHOHYDQW WR WKH FRXUW¶V
$UWLFOH,,,DQDO\VLVWKLVIDFWRUZRXOGKDYHEHHQUHOHYDQWLQ
GHWHUPLQLQJZKHWKHUDVXEVWLWXWLRQRIWKHUHDOSDUW\LQLQWHUHVW
LV DSSURSULDWH XQGHU 5XOH D $ SODLQWLII¶V YLJLODQFH
KRZHYHULVQRWWKHRQO\FRQVLGHUDWLRQXQGHU5XOH D ,Q
SDUWLFXODUDODFNRISUHMXGLFHWRWKHRSSRVLQJSDUW\VKRXOG
DOVREHWDNHQLQWRDFFRXQWLQFRQVLGHULQJD5XOH D PRWLRQ
EHFDXVHWKH5XOHLV³LQWHQGHGWRLQVXUHDJDLQVWIRUIHLWXUHDQG
LQMXVWLFH´ )HG 5 &LY 3 DGYLVRU\ FRPPLWWHH¶V QRWH
:LWKUHVSHFWWR5XOH D WKH6HFRQG&LUFXLWKDVVWDWHG
$OWKRXJK WKH GLVWULFW FRXUW UHWDLQV VRPH GLVFUHWLRQ WR
GLVPLVVDQDFWLRQZKHUHWKHUHZDVQRVHPEODQFHRIDQ\
UHDVRQDEOH EDVLV IRU WKH QDPLQJ RI DQ LQFRUUHFW SDUW\
WKHUHSODLQO\VKRXOGEHQRGLVPLVVDOZKHUHμVXEVWLWXWLRQ
RIWKHUHDOSDUW\LQLQWHUHVWLVQHFHVVDU\WRDYRLGLQMXVWLFH¶
$5XOH D VXEVWLWXWLRQRISODLQWLIIVVKRXOGEH
OLEHUDOO\DOORZHGZKHQWKHFKDQJHLVPHUHO\IRUPDODQG
LQ QR ZD\ DOWHUV WKH RULJLQDO FRPSODLQW¶V IDFWXDO
DOOHJDWLRQVDVWRWKHHYHQWVRUWKHSDUWLFLSDQWV
$GYDQFHG0DJQHWLFV,QFY%D\IURQW3DUWQHUV,QF)G
G&LU TXRWLQJ$&KDUOHV$:ULJKW$UWKXU
50LOOHU 0DU\.D\.DQH)HGHUDO3UDFWLFHDQG3URFHGXUH
DW G (G FLWDWLRQV RPLWWHG $
-- 2 of 6 --
=XULFK,QV&RHWDOY/RJLWUDQVHWDO 1R
$PHULFDQ *XDUDQWHH PRQH\ WKH SDUHQW HQWLWLHV VXIIHUHG D
ILQDQFLDOLQMXU\LQIDFWEHFDXVHWKRVHORVVHVGLPLQLVKHGWKH
YDOXHRIWKHLULQYHVWPHQWLQ$PHULFDQ*XDUDQWHH)UDQFKLVH
7D[%GRI&DOY$OFDQ$OXPLQXP/WG86
KROGLQJWKDWWZRIRUHLJQSDUHQWFRPSDQLHVRI86
VXEVLGLDULHVKDG$UWLFOH,,,VWDQGLQJWRFKDOOHQJH86WD[ODZV
DIIHFWLQJWKHVXEVLGLDULHVEHFDXVH³>L@IWKRVHWD[HVDUHKLJKHU
WKDQWKHODZRIWKHODQGDOORZVWKDWPHWKRGWKUHDWHQVWRFDXVH
DFWXDOILQDQFLDOLQMXU\WR>WKHSDUHQWFRPSDQLHV@E\LOOHJDOO\
UHGXFLQJ WKH UHWXUQ RQ WKHLU LQYHVWPHQWV LQ >WKH $PHULFDQ
VXEVLGLDULHV@ DQG E\ ORZHULQJ WKH YDOXH RI WKHLU
VWRFNKROGLQJV´
7KH SUHVHQW FDVH KRZHYHU ZDV EURXJKW LQ WKH QDPH RI
=XULFK,QVXUDQFHZKLFKLVOLNH$PHULFDQ*XDUDQWHHRZQHG
E\=$,&$PHULFDQ*XDUDQWHHLVWKHUHIRUHQRWDQDVVHWRI
=XULFK ,QVXUDQFH EXW D SDUDOOHO HQWLW\ LQ WKH FRUSRUDWH
KLHUDUFK\ RI =)6* $V VLVWHU FRPSDQLHV WKDW DUH RQO\
FRQQHFWHGZLWKRQHDQRWKHUE\WKHFRPPRQRZQHUWKH\VKDUH
DILQDQFLDOLQMXU\WR$PHULFDQ*XDUDQWHHZRXOGKDYHOLWWOHWR
QRHIIHFWRQ=XULFK,QVXUDQFH$VDUHVXOW=XULFK,QVXUDQFH
KDV QRW EHHQ VKRZQ WR KDYH VXIIHUHG DQ\ LQMXU\ IURP
$PHULFDQ*XDUDQWHH¶VORVVHVRQWKH/HDUSROLF\,WKHUHIRUH
DJUHHZLWKWKHFRXUW¶VFRQFOXVLRQWKDW=XULFK,QVXUDQFHODFNHG
$UWLFOH,,,VWDQGLQJWRPRYHIRUDVXEVWLWXWLRQRIWKHUHDOSDUW\
LQLQWHUHVWXQGHU5XOH D :LWKRXW$UWLFOH,,,VWDQGLQJWKH
GLVWULFWFRXUWODFNHGVXEMHFWPDWWHUMXULVGLFWLRQRYHUWKHHQWLUH
FDVH:KHUHMXULVGLFWLRQGRHVQRWH[LVW³WKHRQO\IXQFWLRQ
UHPDLQLQJ WR WKH FRXUW LV WKDW RI DQQRXQFLQJ WKH IDFW DQG
GLVPLVVLQJ WKH FDXVH´ 6WHHO &R Y &LWL]HQV IRU D %HWWHU
(QY¶W86 LQWHUQDOTXRWDWLRQPDUNVDQG
FLWDWLRQRPLWWHG
7KHUH DUH WZR IXUWKHU PDWWHUV WKDW , EHOLHYH ZDUUDQW
FODULILFDWLRQ)LUVW,WKLQNWKDWWKHOHDGRSLQLRQ¶VXVHRIWKH
DGYLVRU\FRPPLWWHHQRWHVWR5XOHSRWHQWLDOO\FRQIXVHVWKH
VWDQGDUGVIRUGHFLGLQJWKHVHSDUDWHLVVXHVRI $UWLFOH,,,
VWDQGLQJDQG WKHDYDLODELOLW\RIVXEVWLWXWLRQXQGHU5XOH
D RQFH$UWLFOH,,,VWDQGLQJLVHVWDEOLVKHG 2SS ,
DJUHHZLWKWKHOHDGRSLQLRQWKDWWKHH[DPSOHRIWKHDLUFUDVK
1R =XULFK,QV&RHWDOY/RJLWUDQVHWDO
/HDU SDUWLDOO\ RZQHG /HDU 7KDLODQG DQG WKH $PHULFDQ *XDUDQWHH
SROLF\ LVVXHG WR /HDU FRYHUHG /HDU 7KDLODQG DV DQ DGGLWLRQDO LQVXUHG
SDUW\ $OWKRXJK GLVWLQFW FRUSRUDWLRQV DQ\ UHIHUHQFH WR /HDU LQ WKLV
RSLQLRQ ZLOO UHIHU WR ERWK FRUSRUDWLRQV XQOHVV RWKHUZLVH QRWHG
HPHUJHQF\ PRWLRQ IRU UHKHDULQJ DQG UHFRQVLGHUDWLRQ DQG
VXEVHTXHQWGLVPLVVDORIWKHFDVH:KHUHDVWKHGLVWULFWFRXUW
GLG QRW DEXVH LWV GLVFUHWLRQ LQ GHQ\LQJ WKHVH PRWLRQV ZH
$)),50WKHGLVWULFWFRXUW¶VGHFLVLRQ
)$&76
7KLVODZVXLWVWHPVIURPDZDUHKRXVHILUHWKDWRFFXUUHGRQ
$XJXVW'HIHQGDQW$PHULFDQ&RPPRGLWLHV,QF
³$&,´ OHDVHG WKH ZDUHKRXVH ORFDWHG DW 'DYLGVRQ
5RDG )OLQW 0LFKLJDQ DQG VXEOHDVHG D SRUWLRQ RI WKH
ZDUHKRXVH WR 'HIHQGDQW /RJLWUDQV ,QF ³/RJLWUDQV´
/RJLWUDQV VXEVHTXHQWO\ SURYLGHG VHUYLFHV IRU /HDU
&RUSRUDWLRQ ³/HDU´ LQFRQQHFWLRQZLWK/HDU¶VPDQXIDFWXUH
RIDXWRPRELOHVHDWV7KHILUHGHVWUR\HGVLJQLILFDQWSURSHUW\
RZQHGE\/HDUDQG/HDU6HDWLQJ 7KDLODQG &RUSRUDWLRQ/WG
³/HDU7KDLODQG´ 7KHDOOHJDWLRQVDJDLQVWWKHGHIHQGDQWVDUH
EDVHG RQ QHJOLJHQFH DQG IDLOXUH WR H[HUFLVH GXH FDUH LQ
NHHSLQJWKHSURSHUW\VDIH
/HDU DQG /HDU 7KDLODQG ZHUH LQVXUHG E\ $PHULFDQ
*XDUDQWHH ZKR SDLG /HDU¶V FODLPV IRU GDPDJHV
&RQVHTXHQWO\$PHULFDQ*XDUDQWHHEHFDPH/HDU¶VVXEURJHH
UHJDUGLQJDQ\FODLPV/HDUKDGDJDLQVWWKHGHIHQGDQWVDULVLQJ
IURP WKH ILUH ,Q VSLWH RI LWV OHJDO HQWLWOHPHQW $PHULFDQ
*XDUDQWHHZDVQRWQDPHGDSDUW\WRWKHLQLWLDOFRPSODLQWILOHG
RQ1RYHPEHU,QVWHDG=XULFK6ZLW]HUODQGEURXJKW
WKHDFWLRQDV/HDU¶VSXUSRUWHGVXEURJHHQRWZLWKVWDQGLQJWKDW
=XULFK6ZLW]HUODQGQHYHULVVXHGDQLQVXUDQFHSROLF\QRUSDLG
RXWDQ\PRQH\WR/HDU7ZHQW\GD\VEHIRUHWULDO'HIHQGDQW
/RJLWUDQVILOHGDPRWLRQLQOLPLQHLQZKLFKLWILUVWDVVHUWHG
WKDW =XULFK 6ZLW]HUODQG ZDV QRW /HDU¶V WUXH VXEURJHH DQG
DUJXHGWKDW=XULFK6ZLW]HUODQGVKRXOGEHEDUUHGIURPRIIHULQJ
HYLGHQFHDWWULDODQGEDUUHGIURPDGGUHVVLQJWKHMXU\
-- 3 of 6 --
=XULFK,QV&RHWDOY/RJLWUDQVHWDO 1R
=XULFK 6ZLW]HUODQG GLG QRW GLVSXWH WKDW LW ZDVQRWWKH
SURSHUSODLQWLIIDQGUHVSRQGHGE\ILOLQJDPRWLRQWRVXEVWLWXWH
$PHULFDQ*XDUDQWHHDVWKHUHDOSDUW\LQLQWHUHVWSXUVXDQWWR
)HG5&LY3 D 6XEVHTXHQWO\'HIHQGDQW$&,PRYHG
WRGLVPLVVWKHDFWLRQSXUVXDQWWR)HG5&LY3 E DQG
'HIHQGDQW/RJLWUDQVMRLQHGLQWKDWPRWLRQ7KHGLVWULFWFRXUW
GHQLHGWKHPRWLRQWRVXEVWLWXWHRQWKHJURXQGVWKDW=XULFK
6ZLW]HUODQGIDLOHGWRVKRZWKDWWKHSURVHFXWLRQRIWKHFDVHLQ
=XULFK 6ZLW]HUODQG¶V QDPH DV RSSRVHG WR $PHULFDQ
*XDUDQWHH¶V QDPH ZDV DQ XQGHUVWDQGDEOH PLVWDNH 6LQFH
=XULFK 6ZLW]HUODQG ZDV QRW D SURSHU SODLQWLII WKH GLVWULFW
FRXUW GLVPLVVHG LWV FODLPV SXUVXDQW WR 5XOH E
,QDVPXFKDVWKHVWDWXWHRIOLPLWDWLRQVKDGUXQRQ$PHULFDQ
*XDUDQWHH¶V FODLPV WKH GHQLDO RI WKH PRWLRQ WR VXEVWLWXWH
SUHYHQWHG $PHULFDQ *XDUDQWHH IURP SXUVXLQJ LWV FODLPV
DJDLQVWWKHGHIHQGDQWV
,QUHVSRQVH=XULFK6ZLW]HUODQGILOHGDQHPHUJHQF\PRWLRQ
IRU UHKHDULQJ DQG UHFRQVLGHUDWLRQ EDVHG RQ QHZO\ IRXQG
IDFWXDOLQIRUPDWLRQ7KHGLVWULFWFRXUWGHQLHGWKHPRWLRQRQ
WKH JURXQGV WKDW WKH ³QHZ LQIRUPDWLRQ´ GLG QRW UHYHDO D
SDOSDEOHGHIHFWLQWKHFRXUW¶VUXOLQJ=XULFK6ZLW]HUODQGDQG
$PHULFDQ *XDUDQWHH ³$SSHOODQWV´ QRZ DSSHDO WKHVH
GHFLVLRQV
',6&866,21
$SSHOODQWVDUJXHWKDWWKHGLVWULFWFRXUWDEXVHGLWVGLVFUHWLRQ
LQGHQ\LQJ=XULFK6ZLW]HUODQG¶VPRWLRQWRVXEVWLWXWHWKHUHDO
SDUW\LQLQWHUHVWXQGHU)HG5&LY3 D )XUWKHUPRUH
WKH\FRQWHQGWKDWWKHGHIHQGDQWVZDLYHGWKHLUULJKWWREULQJD
UHDOSDUW\LQLQWHUHVWREMHFWLRQLQDVPXFKDVWKHREMHFWLRQZDV
ILOHGLQWKHIRUPRIDPRWLRQLQOLPLQHMXVWWZHQW\GD\VEHIRUH
WULDO$OWKRXJKWKLVFDVHKDVEHHQOLWLJDWHGXQGHU5XOH D
LWLVQRWD³WUXH´UHDOSDUW\LQLQWHUHVWTXHVWLRQEXWLQVWHDGLV
DQ$UWLFOH,,,VWDQGLQJLVVXH
³,QRUGHUIRUDIHGHUDOFRXUWWRH[HUFLVHMXULVGLFWLRQRYHUD
PDWWHU WKH SDUW\ VHHNLQJ UHOLHI PXVW KDYH VWDQGLQJ WR VXH
6WDQGLQJKDVERWKFRQVWLWXWLRQDODQGSUXGHQWLDOGLPHQVLRQV
7KHFRQVWLWXWLRQDOUHTXLUHPHQWVIRUVWDQGLQJHPDQDWHIURP
1R =XULFK,QV&RHWDOY/RJLWUDQVHWDO
BBBBBBBBBBBBBBBBB
&21&855(1&(
BBBBBBBBBBBBBBBBB
521$/' /(( *,/0$1 &LUFXLW -XGJH FRQFXUULQJ
%HFDXVH=XULFK,QVXUDQFH&RPSDQ\GLGQRWVXIIHUDQLQMXU\
LQIDFWDVDUHVXOWRI/RJLWUDQV¶VDOOHJHGDFWLRQV,DJUHHWKDW
WKHGLVWULFWFRXUWODFNHGMXULVGLFWLRQWRFRQVLGHUWKHPRWLRQRI
=XULFK,QVXUDQFHWRVXEVWLWXWHWKHUHDOSDUW\LQLQWHUHVW7KH
URRWSUREOHPLV=XULFK,QVXUDQFH¶VODFNRI$UWLFOH,,,VWDQGLQJ
, ZULWH VHSDUDWHO\ KRZHYHU EHFDXVH WKH OHDG RSLQLRQ¶V
DPELJXLW\DERXWWKHUHODWLRQVKLSEHWZHHQ=XULFK,QVXUDQFH
DQG$PHULFDQ*XDUDQWHHPLJKWOHDGWRFRQIXVLRQLQIXWXUH
FDVHVLQYROYLQJFRPSOH[FRUSRUDWHVWUXFWXUHV
7KHOHDGRSLQLRQFRQFOXGHVWKDW=XULFK,QVXUDQFHVXIIHUHG
QRLQMXU\LQIDFWEHFDXVHLWLV³DWRWDOO\VHSDUDWHHQWLW\´IURP
$PHULFDQ*XDUDQWHH 2SS $OWKRXJKWKLVVWDWHPHQWLV
WHFKQLFDOO\FRUUHFWDUHDGHUXQIDPLOLDUZLWKWKHUHFRUGPLJKW
HDVLO\LQIHUWKLVWRPHDQWKDWWKHWZRHQWLWLHVDUHXQUHODWHG
6XFKLVFOHDUO\QRWWKHFDVH,QVWHDG=XULFK,QVXUDQFHDQG
$PHULFDQ*XDUDQWHHDUHVLVWHUFRPSDQLHVXQGHUWKHFRPPRQ
RZQHUVKLS RI D VLQJOH FRUSRUDWH HQWLW\²=XULFK $PHULFDQ
,QVXUDQFH&RUSRUDWLRQ =$,& =$,&LVLQWXUQDVXEVLGLDU\
RI=XULFK$PHULFDQ,QVXUDQFH*URXS =$,* ZKLFKLVLWVHOI
DVXEVLGLDU\RI=XULFK)LQDQFLDO6HUYLFHV&RUSRUDWLRQ =)6&
EDVHGLQ6ZLW]HUODQG/HDU¶VLQVXUDQFHSROLF\GLVSOD\VVRPH
RIWKHVHUHODWLRQVKLSV7KHSROLF\LVZULWWHQRQD=$,*IRUP
ZLWKWKH=XULFKORJRSURPLQHQWO\GLVSOD\HGDWWKHWRSOHIWRI
WKH SDJH 2SHQ ER[HV DSSHDU EHVLGH WKH ZRUGV ³=XULFK
,QVXUDQFH&RPSDQ\´DQG³$PHULFDQ*XDUDQWHHDQG/LDELOLW\
,QVXUDQFH &RPSDQ\´ ZLWK DQ ³[´ PDUNHG LQ WKH ER[ IRU
$PHULFDQ*XDUDQWHH
,QP\RSLQLRQDQ\RUDOORI$PHULFDQ*XDUDQWHH¶VGLUHFWRU
LQGLUHFWRZQHUV²=$,&=$,*RU=)6*²ZRXOGKDYHKDG
FRQVWLWXWLRQDOVWDQGLQJWREULQJVXLWDJDLQVW/RJLWUDQVHYHQ
WKRXJK QRQH RI WKHVH SDUHQW HQWLWLHV LV WKH UHDO SDUW\ LQ
LQWHUHVW7KHYDOXHRI$PHULFDQ*XDUDQWHHGHSHQGVXSRQLWV
ILQDQFLDOZHOOEHLQJ7RWKH H[WHQWWKDW/HDU¶VORVVHVFRVW
-- 4 of 6 --
=XULFK,QV&RHWDOY/RJLWUDQVHWDO 1R
³7KHUHLVQRWGRXEWWKDWDVWRWKHWUXVWIXQGWKHWUXVWHHV
DUHWKHUHDOSDUW\LQLQWHUHVWE\YLUWXHRI)HG5&LY3 D
%XW 5XOH D PHDQV RQO\ WKDW WKH WUXVWHHV KDYH D UHDO
LQWHUHVW LQ WKH WUXVW IXQG 5XOH D GRHV QRW JLYH WKHP
VWDQGLQJ μUHDO SDUW\ LQ LQWHUHVW¶ LV YHU\ GLIIHUHQW IURP
VWDQGLQJ´
$FFRUGLQJO\ZH$)),50WKHGLVWULFWFRXUW¶VGHFLVLRQ
1R =XULFK,QV&RHWDOY/RJLWUDQVHWDO
$UW,,,RIWKH86&RQVWLWXWLRQZKLFKJUDQWVIHGHUDO
FRXUWV MXULVGLFWLRQ RYHU μFDVHV¶ DQG μFRQWURYHUVLHV¶´
.DUGXOHVY&LW\RI&ROXPEXV)G WK&LU
7RHVWDEOLVK$UWLFOH,,,VWDQGLQJDSODLQWLIIPXVWDWD
PLQLPXPHVWDEOLVKWKHIROORZLQJHOHPHQWV
)LUVWWKHSODLQWLIIPXVWKDYHVXIIHUHGDQ³LQMXU\LQIDFW´
±DQLQYDVLRQRIDOHJDOO\SURWHFWHGLQWHUHVWZKLFKLV D
FRQFUHWHDQGSDUWLFXODUL]HGDQG E ³DFWXDORULPPLQHQW
QRWμFRQMHFWXUDO¶RUμK\SRWKHWLFDO¶´6HFRQGWKHUHPXVW
EH D FDXVDO FRQQHFWLRQ EHWZHHQ WKH LQMXU\ DQG WKH
FRQGXFWFRPSODLQHGRU±WKHLQMXU\KDVWREH³IDLUO\
WUDFH>DEOH@WRWKHFKDOOHQJHGDFWLRQRIWKHGHIHQGDQWDQG
QRWWK>H@UHVXOW>RI@WKHLQGHSHQGHQWDFWLRQRIVRPH
WKLUG SDUW\ QRW EHIRUH WKH FRXUW´ 7KLUG LW PXVW EH
³OLNHO\´ DV RSSRVHG WR PHUHO\ ³VSHFXODWLYH´ WKDW WKH
LQMXU\ZLOOEHUHGUHVVHGE\DIDYRUDEOHGHFLVLRQ´
,G TXRWLQJ/XMDQY'HIHQGHUVRI:LOGOLIH86
$UWLFOH ,,, VWDQGLQJ LV D MXULVGLFWLRQDO
UHTXLUHPHQWWKDWFDQQRWEHZDLYHGDQGVXFKPD\EHEURXJKW
XSDWDQ\WLPHLQWKHSURFHHGLQJ)HG5&LY3 K
:KHUHDV=XULFK$PHULFDQDGPLWWHGO\KDVQRWVXIIHUHGLQMXU\
LQ IDFW E\ WKH GHIHQGDQWV LW KDG QR VWDQGLQJ WR EULQJ WKLV
DFWLRQDQGQRVWDQGLQJWRPDNHDPRWLRQWRVXEVWLWXWHWKHUHDO
SDUW\LQLQWHUHVW$FFRUGLQJO\WKHGLVWULFWFRXUW¶VGHQLDORI
$SSHOODQWV¶ 5XOH D PRWLRQ WR VXEVWLWXWH DQG WKH
VXEVHTXHQWGLVPLVVDORIWKHDFWLRQPXVWEHDIILUPHG
7KH)HGHUDO5XOHVRI&LYLO3URFHGXUHFDQQRWH[SDQGWKH
VXEMHFWPDWWHUMXULVGLFWLRQRIIHGHUDOFRXUWVEH\RQGWKHOLPLWV
RI86&RQVWLWXWLRQ86& E $SSHOODQWVUHO\
XSRQWKHSURYLVLRQRI5XOH D ZKLFKVWDWHVWKDW
1RDFWLRQVKDOOEHGLVPLVVHGRQWKHJURXQGVWKDWLWLVQRW
SURVHFXWHGLQWKHQDPHRIWKHUHDOSDUW\LQLQWHUHVWXQWLO
DUHDVRQDEOHWLPHKDVEHHQDOORZHGDIWHUREMHFWLRQIRU
UDWLILFDWLRQRIFRPPHQFHPHQWRIWKHDFWLRQE\RUMRLQGHU
RU VXEVWLWXWLRQ RI WKH UHDO SDUW\ LQ LQWHUHVW DQG VXFK
UDWLILFDWLRQMRLQGHURUVXEVWLWXWLRQVKDOOKDYHWKHVDPH
-- 5 of 6 --
=XULFK,QV&RHWDOY/RJLWUDQVHWDO 1R
HIIHFWDVLIWKHDFWLRQKDGEHHQFRPPHQFHGLQWKHQDPH
RIWKHUHDOSDUW\LQLQWHUHVW
)HG5&LY3 D +RZHYHUWKLVSURYLVLRQPXVWEHUHDG
ZLWK WKH OLPLWDWLRQ WKDW D IHGHUDO GLVWULFW FRXUW PXVW DW D
PLQLPXPDUJXDEO\KDYHVXEMHFWPDWWHUMXULVGLFWLRQRYHUWKH
RULJLQDOFODLPV6XFKDQLQWHUSUHWDWLRQLVVXSSRUWHGE\WKH
DGYLVRU\FRPPLWWHHQRWHVWR5XOH D
7KHSURYLVLRQWKDWQRDFWLRQVKDOOEHGLVPLVVHGRQWKH
JURXQGWKDWLWLVQRWSURVHFXWHGLQWKHQDPHRIWKHUHDO
SDUW\LQLQWHUHVWXQWLODUHDVRQDEOHWLPHKDVEHHQDOORZHG
DIWHU WKH REMHFWLRQ KDV EHHQ UDLVHG IRU UDWLILFDWLRQ
VXEVWLWXWLRQ HWF LV DGGHG VLPSO\ LQ WKH LQWHUHVWV RI
MXVWLFH,QLWVRULJLQWKHUXOHFRQFHUQLQJWKHUHDOSDUW\LQ
LQWHUHVWZDVSHUPLVVLYHLQSXUSRVHLWZDVGHVLJQHGWR
DOORZDQDVVLJQHHWRVXHLQKLVRZQQDPH7KDWKDYLQJ
EHHQDFFRPSOLVKHGWKHPRGHUQIXQFWLRQRIWKHUXOHLQLWV
QHJDWLYHDVSHFWLVVLPSO\WRSURWHFWWKHGHIHQGDQWDJDLQVW
WKHDVXEVHTXHQWDFWLRQE\WKHSDUW\DFWXDOO\HQWLWOHGWR
UHFRYHUDQGWRLQVXUHJHQHUDOO\WKDWWKHMXGJPHQWZLOO
KDYHLWVSURSHUHIIHFWDVUHMXGLFDWD
7KLVSURYLVLRQNHHSVSDFHZLWKWKHODZDVLWLVDFWXDOO\
GHYHORSLQJ0RGHUQGHFLVLRQVDUHLQFOLQHGWREHOHQLHQW
ZKHQDQKRQHVWPLVWDNHKDVEHHQPDGHLQFKRRVLQJWKH
SDUW\LQZKRVHQDPHWKHDFWLRQLVWREHILOHG²ERWKLQ
PDULWLPH DQG QRQPDULWLPH FDVHV 6HH /HYLVRQ Y
'HXSUHH 86 /LQN $YLDWLRQ ,QF Y
'RZQV)G '&&LU 7KLVSURYLVLRQ
VKRXOGQRWEHPLVXQGHUVWRRGRUGLVWRUWHG,WLVLQWHQGHG
WRSUHYHQWIRUIHLWXUHZKHQGHWHUPLQDWLRQRIWKHSURSHU
SDUW\ WR VXH LV GLIILFXOW RU ZKHQ DQ XQGHUVWDQGDEOH
PLVWDNHKDVEHHQPDGH,WGRHVQRWPHDQIRUH[DPSOH
WKDWIROORZLQJDQDLUSODQHFUDVKLQZKLFKDOODERDUGZHUH
NLOOHGDQDFWLRQPD\EHILOHGLQWKHQDPHRI-RKQ'RH D
ILFWLWLRXVSHUVRQ DVSHUVRQDOUHSUHVHQWDWLYHRI5LFKDUG
5RH DQRWKHUILFWLWLRXVSHUVRQ LQWKHKRSHWKDWDWDODWHU
WLPHWKHDWWRUQH\ILOLQJWKHDFWLRQPD\VXEVWLWXWHWKHUHDO
QDPHRIWKHUHDOSHUVRQDOUHSUHVHQWDWLYHRIDUHDOYLFWLP
DQG KDYH WKH EHQHILW RI VXVSHQVLRQ RI WKH OLPLWDWLRQ
1R =XULFK,QV&RHWDOY/RJLWUDQVHWDO
SHULRG,WGRHVQRWHYHQPHDQZKHQDQDFWLRQLVILOHGE\
WKHSHUVRQDOUHSUHVHQWDWLYHRI-RKQ6PLWKRI%XIIDORLQ
WKHJRRGIDLWKEHOLHIWKDWKHZDVDERDUGWKHILJKWWKDW
XSRQ GLVFRYHU\ WKDW 6PLWK LV DOLYH DQG ZHOO KDYLQJ
PLVVHG WKH IDWDO IOLJKW WKH UHSUHVHQWDWLYH RI -DPHV
%URZQ RI 6DQ )UDQFLVFR DQ DFWXDO YLFWLP FDQ EH
VXEVWLWXWHGWRWDNHDGYDQWDJHRIWKHVXVSHQVLRQRIWKH
OLPLWDWLRQVSHULRG
)HG 5 &LY 3 DGYLVRU\ FRPPLWWHH¶V QRWHV HPSKDVLV
DGGHG
7KH IDFWV RI WKLV FDVH DUH DQDORJRXV WR WKH ODVW H[DPSOH
LOOXVWUDWHGE\WKHDGYLVRU\FRPPLWWHH$QDWWRUQH\PDGHD
PLVWDNH DQG ILOHG WKH DFWLRQ LQ WKH QDPH RI =XULFK
6ZLW]HUODQG ZKHQ =XULFK 6ZLW]HUODQG KDG QR FODLPV
ZKDWVRHYHUDJDLQVWWKHGHIHQGDQWVDQGQR$UWLFOH,,,VWDQGLQJ
WRVXH$PHULFDQ*XDUDQWHHDWRWDOO\VHSDUDWHHQWLW\ZKLFK
ZDVQRWYLJLODQWLQSURWHFWLQJLWVFODLPVFDQQRWQRZEHQHILW
IURP=XULFK6ZLW]HUODQG¶VPLVWDNHVRDVWRWDNHDGYDQWDJHRI
WKHVXVSHQVLRQRIWKHOLPLWDWLRQVSHULRG
6HYHUDORWKHUFLUFXLWFRXUWVKDYHDFNQRZOHGJHGWKDWWKHUH
LVDGLVWLQFWLRQEHWZHHQTXHVWLRQVRI$UWLFOH,,,VWDQGLQJDQG
5XOH D UHDOSDUW\LQLQWHUHVWREMHFWLRQV7KH)LIWK&LUFXLW
LQ (QVHO\ Y &RG\ 5HVRXUFHV ,QF )G WK &LU
GHWHUPLQHG WKDW D VKDUHKROGHU LQ D FORVHO\ KHOG
FRUSRUDWLRQ KDG $UWLFOH ,,, VWDQGLQJ WR VXH RQ FODLPV RI
TXDQWXPPHUXLW7KH)LIWK&LUFXLWZHQWRQWRILQGWKDWWKH
GHIHQGDQW¶V REMHFWLRQV WR WKH SODLQWLII¶V VWDQGLQJ ZHUH
JRYHUQHG E\ 5XOH D UHDO SDUW\ LQ LQWHUHVW DQDO\VLV DQG
ZHUHZDLYHGEHFDXVHWKHREMHFWLRQZDVQRWPDGHXQWLOWKH
WULDOZDVXQGHUZD\,GDW/LNHZLVHWKH'LVWULFWRI
&ROXPELD&LUFXLWDFNQRZOHGJHGDGLVWLQFWLRQEHWZHHQ$UWLFOH
,,,VWDQGLQJDQG5XOH D LQ:KHODQY$EHOO)G
ZKHQ LW LQLWLDOO\ PDGH WKH GHWHUPLQDWLRQ WKDW WKH
VKDUHKROGHUSODLQWLIIGLGKDYHVWDQGLQJXQGHU$UWLFOH,,,SULRU
WRDGGUHVVLQJWKH5XOH D LVVXH,GDW6HHDOVR.HQW
Y 1RUWKHUQ &DOLIRUQLD 5HJLRQDO RIILFH RI WKH $PHULFDQ
)ULHQGV6HUYLFH&RPPLWWHH)G WK&LU
-- 6 of 6 --
Connect Omnilex to search the legal corpus from your AI assistant.