02a0271p.06

7KH +RQRUDEOH 5LFKDUG 0LOOV 6HQLRU 8QLWHG 6WDWHV 'LVWULFW -XGJH
IRU WKH &HQWUDO 'LVWULFW RI ,OOLQRLV 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
(/,=$%(7+ / 5286(
3ODLQWLII$SSHOOHH
Y
'$,0/(5&+5<6/(5
&25325$7,21 8$:
121&2175,%8725< 3/$1
'HIHQGDQW$SSHOODQW
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1R²3DXO'%RUPDQ'LVWULFW-XGJH
$UJXHG-XQH
'HFLGHGDQG)LOHG$XJXVW
%HIRUH&2/(DQG*,/0$1&LUFXLW-XGJHV0,//6
'LVWULFW-XGJH

-- 1 of 6 --

5RXVHY'DLPOHU&KU\VOHU&RUS 1R
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' )UDQFLV 5 2UWL] ',&.,1621 :5,*+7
3//& 'HWURLW 0LFKLJDQ IRU $SSHOODQW &DPLOOH +RUQH
3/81.(77 &221(<'HWURLW0LFKLJDQIRU$SSHOOHH
21 %5,() )UDQFLV 5 2UWL] ',&.,1621 :5,*+7
3//&'HWURLW0LFKLJDQIRU$SSHOODQW5REHUW*.DPHQHF
3/81.(77 &221(<%ORRPILHOG+LOOV0LFKLJDQIRU
$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
5,&+$5' 0,//6 'LVWULFW -XGJH ,Q (OL]DEHWK
5RXVHVXFFHVVIXOO\SHWLWLRQHG0LFKLJDQ¶V0DFRPE&RXQW\
&LUFXLW &RXUW WR UHWURDFWLYHO\ PRGLI\ KHU GLYRUFH
VHWWOHPHQW YLD D GRPHVWLF UHODWLRQV RUGHU 7KH RUGHU JDYH
5RXVH VXUYLYRUVKLSEHQHILWV LQ KHU GHFHDVHG H[KXVEDQG¶V
SHQVLRQ,WDOVRLPSDFWHGWKH'DLPOHU&KU\VOHU&RUSRUDWLRQ
8$:1RQ&RQWULEXWRU\3ODQ¶V ³WKH3ODQ´ REOLJDWLRQVXQGHU
WKH (PSOR\HH 5HWLUHPHQW ,QFRPH 6HFXULW\ $FW RI
³(5,6$´
7KH 3ODQ UHPRYHG 5RXVH¶V FDVH WR IHGHUDO FRXUW RQ WKH
EDVLV RI IHGHUDOTXHVWLRQ MXULVGLFWLRQ ,W FRQWHVWHG WKH
GRPHVWLF UHODWLRQV RUGHU¶V YDOLGLW\ FODLPLQJ WKDW WKH VWDWH
FRXUWLVVXHGLWSXUVXDQWWRDVKDPKHDULQJ7KHGLVWULFWFRXUW
WKURXJK-XGJH'HQLVH3DJH+RRGKHOGWKDWWKLVZDVDQLVVXH
WKDWVKRXOGEHGHFLGHGE\WKHVWDWHFRXUW7KXVWKHGLVWULFW
FRXUWGLVPLVVHGWKHFDVHVRWKDWWKHSDUWLHVFRXOGUHILOHLWLQ
VWDWHFRXUW
7ZR\HDUVODWHU5RXVHILOHGD0RWLRQIRU5XOHWR6KRZ
&DXVHLQDQHIIRUWWRUHTXLUHWKH3ODQWRSD\KHUVXUYLYRUVKLS
EHQHILWVFODLP7KH3ODQDJDLQUHPRYHGWKHFDVHWRIHGHUDO
FRXUW7KLVWLPHWKH3ODQDUJXHGWKDWWKHGRPHVWLFUHODWLRQV
RUGHUZDVLQYDOLGXQGHU(5,6$

-- 2 of 6 --

1R 5RXVHY'DLPOHU&KU\VOHU&RUS
-XGJH+RRGUHFXVHGKHUVHOIDQGWKHFDVHZDVDVVLJQHGWR
-XGJH%RUPDQ-XGJH%RUPDQUHYLHZHG-XGJH+RRG¶VRUGHU
DQGFRQFOXGHGWKDWLWUHTXLUHGWKHSDUWLHVWRUHVROYHDOOLVVXHV
DERXWWKHGRPHVWLFUHODWLRQVRUGHU¶VYDOLGLW\LQVWDWHFRXUW+H
KHOGWKDW-XGJH+RRG¶VRUGHUZDVODZRIWKHFDVHDQGVWD\HG
WKHVXLWSHQGLQJDVWDWHFRXUW¶VGHFLVLRQDERXWWKHRUGHU
-XGJH %RUPDQ DOVR KHOG WKDW ³FRPLW\ DQG FROOHJLDOLW\
EHWZHHQ FRRUGLQDWH FRXUWV´ DV ZHOO DV (5,6$¶V VWDWXWRU\
VFKHPHUHTXLUHGWKDWWKHGRPHVWLFUHODWLRQVRUGHU¶VYDOLGLW\
EHGHFLGHGLQVWDWHFRXUW+HGHQLHGWKH3ODQ¶VPRWLRQIRU
HQWU\RIMXGJPHQWDQGVWD\HGDOOSURFHHGLQJVSHQGLQJWKHVWDWH
FRXUW¶VGHFLVLRQ
)RU WKH IROORZLQJ UHDVRQV ZH 5(9(56( WKH GLVWULFW
FRXUW¶VMXGJPHQW
%$&.*5281'
(OL]DEHWK 5RXVH ZDV PDUULHG WR &KU\VOHU &RUSRUDWLRQ
HPSOR\HH.HQQHWK&5RXVHIRUDSSUR[LPDWHO\\HDUV7KH
5RXVHV GLYRUFHG RQ $SULO DQG HQWHUHG LQWR D
SURSHUW\VHWWOHPHQWEHIRUHWKH0DFRPE&RXQW\&LUFXLW&RXUW
7KHVHWWOHPHQWDJUHHPHQWVWDWHGWKDW
WKH'HIHQGDQW>(OL]DEHWK5RXVH@LVDZDUGHGRQHKDOIRI
DQ\ SHQVLRQ SD\PHQW SDLG WR WKH 3ODLQWLII >.HQQHWK
5RXVH@ E\ &KU\VOHU &RUSRUDWLRQ SULRU WR WKH 3ODLQWLII
DWWDLQLQJWKHDJHRIVL[W\WZR \HDUV$IWHU3ODLQWLII
KDVDWWDLQHGWKHDJHRIVL[W\WZR \HDUV'HIHQGDQWLV
DZDUGHGWKHVXPRI7:2+81'5('7+,57<7+5((
$1' '2//$56SHUPRQWKRIDQ\SHQVLRQ
SD\PHQWVSDLGWRWKH3ODLQWLIIE\&KU\VOHU&RUSRUDWLRQ
,QWKHHYHQWRI3ODLQWLII VGHDWK'HIHQGDQWLVDZDUGHG
DQ\ VXUYLYRUV SHQVLRQ SD\PHQWV SD\DEOH E\ &KU\VOHU
&RUSRUDWLRQKRZHYHU3ODLQWLIIVKDOOQRWEHREOLJDWHGWR
SURYLGHIRUDQ\VXFKVXUYLYRUVSD\PHQWV
:KHQ.HQQHWK5RXVHGLHGRIFDQFHULQ$SULO0UV
5RXVHVHQWDOHWWHUWRWKH&KU\VOHU8$:3HQVLRQ%RDUGRI
$GPLQLVWUDWLRQ ³WKH%RDUG´ DVNLQJLWWRSURYLGHKHUZLWK

-- 3 of 6 --

5RXVHY'DLPOHU&KU\VOHU&RUS 1R
VXUYLYLQJ VSRXVH EHQHILWV IURP KHU H[KXVEDQG¶V SHQVLRQ
&KU\VOHU¶V SHQVLRQ DQDO\VW ZURWH EDFN WR 0UV 5RXVH DQG
LQIRUPHGKHUWKDWVKHZDVLQHOLJLEOHIRUWKRVHEHQHILWV7KH
SHQVLRQDQDO\VWVWDWHGWKDWDOWKRXJK0U5RXVHZDVDQDFWLYH
SDUWLFLSDQWLQWKH&KU\VOHU8$:1RQ&RQWULEXWRU\3HQVLRQ
3ODQ WKH 3ODQ GLG QRW SURYLGH IRU DXWRPDWLF SD\PHQW RI
VXUYLYLQJVSRXVHEHQHILWV7KHDQDO\VWIXUWKHUQRWHGWKDWWKH
GLYRUFHGHFUHHXSRQZKLFK0UV5RXVHEDVHGKHUFODLPGLG
QRW H[SUHVVO\ REOLJDWH 0U 5RXVH WR SURYLGH IRU VXUYLYRU
SD\PHQWV
6LQFH0U5RXVHGLGQRWDVVLJQVXUYLYRUEHQHILWVWR0UV
5RXVH LQ WKH VHWWOHPHQW DJUHHPHQW DQG WKH 3ODQ GLG QRW
DXWRPDWLFDOO\SURYLGHWKHP&KU\VOHULQIRUPHG0UV5RXVH
WKDWVKHZRXOGQHHGWRJHWD4XDOLILHG'RPHVWLF5HODWLRQV
2UGHU ³4'52´ WRUHFHLYHVXUYLYLQJVSRXVHEHQHILWV0UV
5RXVHQRWLILHG&KU\VOHUWKDWVKHLQWHQGHGWRVHHND4'52
DQGVKHVHQWWKH%RDUGDSURSRVHG4'52%RDUGPHPEHU
5RQDOG*XUGDNDSSURYHGWKHSURSRVHG4'52DVWRLWVIRUP
EXWZRXOGQRWDSSURYHLWVFRQWHQW0UV5RXVHWKHQILOHGVXLW
LQFRXQW\FRXUWLQDQHIIRUWWRJHWDGRPHVWLFUHODWLRQVRUGHU
³'52´ WKDWTXDOLILHGXQGHU(5,6$7KHFRXQW\FRXUWKHOG
DKHDULQJEXWWKH3ODQGLGQRWDSSHDUDWWKHKHDULQJRUILOHDQ
RSSRVLWLRQEULHI$FFRUGLQJO\WKHFRXQW\FRXUWLVVXHG0UV
5RXVHD'52DQGIRUZDUGHGDFRS\WRWKH%RDUG
$UPHGZLWKWKH0DFRPE&RXQW\&LUFXLW&RXUW¶V-XO\
2UGHU 0UV 5RXVH DJDLQ UHTXHVWHG WKH %RDUG WR
DSSURYHKHUUHTXHVWIRUSHQVLRQEHQHILWV2Q6HSWHPEHU
WKH%RDUGGHQLHGKHUUHTXHVW,WVWDWHGVHYHUDOUHDVRQV
IRUWKHGHFLVLRQ$PRQJWKHPWKH%RDUGDVVHUWHGWKDWWKH
VWDWHFRXUW¶V'52GLGQRWTXDOLI\XQGHU(5,6$EHFDXVH
D 7KHSHQVLRQDJUHHPHQWEHWZHHQ&KU\VOHUDQG0U
5RXVHZDVQRWREOLJDWHGWRSURYLGHEHQHILWVWR3ODLQWLII
DWKLVGHDWK
E 7KHUHZDVQRLQGLFDWLRQRI0U5RXVH¶VLQWHQWWR
FKDQJHGLYLVLRQRISURSHUW\VWDWXVDWWLPHRIGLYRUFH
1R 5RXVHY'DLPOHU&KU\VOHU&RUS
&&ROODWHUDO$WWDFN
)LQDOO\0UV5RXVHFRQWHQGVWKDWWKH3ODQ¶V0RWLRQIRU
(QWU\RI-XGJPHQWLVDQLPSHUPLVVLEOHFROODWHUDODWWDFNRQ
-XGJH+RRG¶V2UGHUDQG2SLQLRQ7KHUHFRUGGRHVQRW
VXSSRUWWKLVFRQWHQWLRQ
:KHQ-XGJH+RRGGLVPLVVHG0UV5RXVH¶VDQGWKH3ODQ¶V
FURVVPRWLRQVIRUVXPPDU\MXGJPHQWLQVKHGLGVRWR
DOORZWKHVWDWHFRXUWWKHRSSRUWXQLW\WRGHWHUPLQHZKHWKHURU
QRWWKH'52ZDVLVVXHGSXUVXDQWWRDVKDPKHDULQJ+HU
2UGHU DQG 2SLQLRQ GLG QRW DGGUHVV ZKHWKHU WKH '52 ZDV
YDOLG XQGHU (5,6$ DQG WKDW ZDV WKH SULPDU\ LVVXH LQ WKH
3ODQ¶VVXEVHTXHQW0RWLRQIRU(QWU\RI-XGJPHQW6LQFHWKH
LVVXHV-XGJH+RRGFRQVLGHUHGZHUHQRWWKHVDPHLVVXHVLQWKH
3ODQ¶V0RWLRQIRU(QWU\RI-XGJPHQWWKH0RWLRQIRU(QWU\RI
-XGJPHQWFDQQRWEHFRQVLGHUHGDFROODWHUDODWWDFN
&21&/86,21
)RUWKHIRUHJRLQJUHDVRQVWKHMXGJPHQWRIWKHGLVWULFWFRXUW
LV 5(9(56(' 7KH FDVH LV 5(0$1'(' IRU IXUWKHU
FRQVLGHUDWLRQFRQVLVWHQWZLWKWKLVRSLQLRQ

-- 4 of 6 --

5RXVHY'DLPOHU&KU\VOHU&RUS 1R
EDU´RU WKH³H[HUFLVHRIIHGHUDOUHYLHZRIWKHTXHVWLRQLQ
DFDVHDQGLQVLPLODUFDVHVZRXOGEHGLVUXSWLYHRIVWDWHHIIRUWV
WR HVWDEOLVK D FRKHUHQW SROLF\ ZLWK UHVSHFW WR D PDWWHU RI
VXEVWDQWLDOSXEOLFFRQFHUQ´6HH&RORUDGR5LYHU86
6&W/(GG GLVFXVVLQJ
%XUIRUG
7KH %XUIRUG DEVWHQWLRQ GRFWULQH LV LQDSSOLFDEOH KHUH IRU
VHYHUDOUHDVRQV)LUVWWKHUHLVQRVWDWHDGPLQLVWUDWLYHDJHQF\
LQYROYHGLQWKHGLVSXWH6HFRQGWKHUHLVQRGLIILFXOWTXHVWLRQ
RIVWDWHODZZKRVHLPSRUWDQFHWUDQVFHQGVWKHUHVXOWRIWKLV
FDVHRUDQ\EDVLVIRUFRQFOXGLQJWKDWIHGHUDOUHYLHZRIWKLV
PDWWHUZRXOGEHGLVUXSWLYHRI0LFKLJDQ¶VGRPHVWLFUHODWLRQV
SROLFLHV7KHTXHVWLRQEHIRUHWKHGLVWULFWFRXUWZDVZKHWKHU
WKH'52VDWLVILHG†RI(5,6$7KDWTXHVWLRQLVVWULFWO\
IHGHUDO 6LQFH IHGHUDO UHYLHZ RI WKH '52 ZDV OLPLWHG WR
GHWHUPLQLQJZKHWKHUWKH'52FUHDWHGDQ\REOLJDWLRQVXQGHU
(5,6$²DIHGHUDOVWDWXWH²WKHGLVWULFWFRXUW¶VUHYLHZGLGQRW
UHTXLUHLWWRPHGGOHLQVWDWHGRPHVWLFUHODWLRQVODZRULQWHUIHUH
ZLWKVWDWHGRPHVWLFUHODWLRQVSROLFLHV
0RUHRYHU WKH 6XSUHPH &RXUW KDV VWDWHG WKDW ZKHQ WKH
VWDWXVRIDGRPHVWLFUHODWLRQVKLSKDVEHHQGHWHUPLQHGDVD
PDWWHURIVWDWHODZ²XSRQWKHHQWU\RIDGLYRUFHVHWWOHPHQW
DJUHHPHQWHWF²DQGKDVQREHDULQJRQWKHXQGHUO\LQJFODLP
³ZHKDYHQRGLIILFXOW\FRQFOXGLQJWKDW%XUIRUGDEVWHQWLRQLV
LQDSSURSULDWH´6HH$QNHQEUDQGWY5LFKDUGV86
6&W/(GG
7KHVWDWXVRI0UV5RXVH¶VGRPHVWLFUHODWLRQVKLSZLWKKHUH[
KXVEDQGKDGDOUHDG\EHHQGHWHUPLQHGZKHQVKHREWDLQHGWKH
'52LQVWDWHFRXUW%HFDXVHWKH3ODQ¶VFODLPLQLWV0RWLRQ
IRU(QWU\RI-XGJPHQWFRQWHVWVRQO\WKHYDOLGLW\RIWKH'52
XQGHU(5,6$%XUIRUGDEVWHQWLRQLVLQDSSURSULDWHKHUH6HH
DOVR &DW] Y &KDONHU )G WK &LU
VWDWLQJ WKDW WKH GRPHVWLF UHODWLRQV H[FHSWLRQ WR IHGHUDO
MXULVGLFWLRQ LV OLPLWHG WR FDVHV ZKHUH D SDUW\ VHHNV WKH
LVVXDQFHRIDGLYRUFHRUFKLOGFXVWRG\GHFUHHLQIHGHUDOFRXUW
1R 5RXVHY'DLPOHU&KU\VOHU&RUS
F 7KHQHZGHFUHHZDVHQWHUHG\HDUVDIWHUGLYRUFH
DQG\HDUVDIWHUHQDFWPHQWRI>WKH5HWLUHPHQW(TXLW\
$FWRI3/@
G 7KH'RPHVWLF5HODWLRQV2UGHUZDVVXEPLWWHGWRWKH
FRXUWDIWHU0U5RXVH¶VGHDWK
,Q0UV5RXVHPRYHGWKHGLVWULFWFRXUWIRUVXPPDU\
MXGJPHQWDUJXLQJWKDWWKH%RDUGGLGQRWKDYHDXWKRULW\WR
GLVUHJDUGWKHVWDWHFRXUW¶V'527KH3ODQDOVRPRYHGIRU
VXPPDU\MXGJPHQWDVVHUWLQJWKDWWKHGLYRUFHGHFUHHGLG
QRWREOLJDWH0U5RXVHWRSD\0UV5RXVHVXUYLYRUEHQHILWV
DQGWKDWWKH'52ZDVWKHLQYDOLGUHVXOWRIDVKDPVWDWHFRXUW
SURFHHGLQJ -XGJH +RRG GHQLHG ERWK SDUWLHV¶ PRWLRQV
KROGLQJWKDWWKHSURSULHW\RIWKH3ODQ¶VGHQLDOFRXOGQRWEH
DVVHVVHGXQWLOWKHVWDWHFRXUWLQWHUSUHWHGWKHGLYRUFHGHFUHH
DQGWKH'52-XGJH+RRGGLVPLVVHGWKHFDVHDQGLWUHPDLQHG
LGOHIRUWZR\HDUVXQWLO0UV5RXVHILOHGD0RWLRQIRU2UGHU
WR6KRZ&DXVHLQVWDWHFRXUWWRREWDLQVXUYLYRUEHQHILWV
6LQFH0UV5RXVH¶VEHQHILWFODLPLPSOLFDWHG(5,6$WKH
3ODQUHPRYHGWKHFDVHWRGLVWULFWFRXUWSXUVXDQWWR86&
† -XGJH +RRG UHFXVHG KHUVHOI DQG WKH FDVH ZDV
DVVLJQHGWR-XGJH3DXO%RUPDQ7KH3ODQPRYHGIRUDQHQWU\
RIMXGJPHQWDQG-XGJH%RUPDQGHQLHGWKHPRWLRQ-XGJH
%RUPDQKHOGWKDWWKHODZRIWKHFDVHGRFWULQHUHTXLUHGWKH
FRXUWWRIROORZ-XGJH+RRG¶VSUHYLRXVRUGHU-XGJH%RUPDQ
DOVR KHOG WKDW ³FRPLW\ DQG FROOHJLDOLW\ EHWZHHQ FRRUGLQDWH
FRXUWV´DVZHOODV(5,6$¶VVWDWXWRU\VFKHPHUHTXLUHGWKDW
WKH'52¶VYDOLGLW\EHGHFLGHGLQVWDWHFRXUW+HVWD\HGWKH
FDVH SHQGLQJ WKH VWDWH FRXUW¶V GHFLVLRQ DERXW WKH GLYRUFH
GHFUHHDQGWKH'52¶VYDOLGLW\7KH3ODQWLPHO\DSSHDOHGWKH
GLVWULFWFRXUW¶VMXGJPHQW
',6&866,21
7KUHHLVVXHVFRPSULVHWKLVDSSHDOWKHDSSOLFDWLRQRIWKH
ODZRIWKHFDVH GRFWULQH WKH DSSOLFDWLRQ RI %XUIRUG
DEVWHQWLRQ VHH%XUIRUGY6XQ2LO&R866&W
/(G DQGZKHWKHUWKH3ODQ¶V0RWLRQ

-- 5 of 6 --

5RXVHY'DLPOHU&KU\VOHU&RUS 1R
7KH 3ODQ UDLVHV WKH GLVWULFW FRXUW¶V MXULVGLFWLRQ DV D IRXUWK LVVXH IRU
DSSHDO 7KH 3ODQ FRQWHQGV WKDW WKH GLVWULFW FRXUW KDG MXULVGLFWLRQ WR KHDU
WKH (5,6$ LVVXH UDLVHG LQ WKH 0RWLRQ IRU (QWU\ RI -XGJPHQW 6LQFH QR
RQH GLVSXWHV WKLV DQG LW LV FOHDU WKDW WKH GLVWULFW FRXUW KDG MXULVGLFWLRQ
SXUVXDQW WR 86& † ZH ZLOO QRW IXUWKHU GLVFXVV WKH LVVXH
IRU(QWU\RI-XGJPHQWLVDQLPSHUPLVVLEOHFROODWHUDODWWDFN
7KH&RXUWFRQVLGHUVHDFKLVVXHLQWXUQ
$/DZRIWKHFDVH'RFWULQH
:HXVHDQDEXVHRIGLVFUHWLRQVWDQGDUGZKHQUHYLHZLQJD
ORZHUFRXUW¶VDSSOLFDWLRQRIWKHODZRIWKHFDVHGRFWULQH6HH
3DFLILF(PSOR\HUV,QV&RY6DYD/RWRI:LQFKHVWHU
)G WK&LU FLWLQJ%RZOLQJY3IL]HU,QF
)G WK&LU 8QGHUWKHODZRIWKH
FDVH GRFWULQH ILQGLQJV PDGH DW RQH SRLQW LQ WKH OLWLJDWLRQ
EHFRPHWKHODZRIWKHFDVHIRUVXEVHTXHQWVWDJHVRIWKDWVDPH
OLWLJDWLRQ6HH8QLWHG6WDWHVY0RRUHG)G
WK &LU 7KH GRFWULQH DOVR EDUV FKDOOHQJHV WR D
GHFLVLRQ PDGH DW D SUHYLRXV VWDJH RI WKH OLWLJDWLRQ ZKLFK
FRXOGKDYHEHHQFKDOOHQJHGLQDSULRUDSSHDOEXWZHUHQRW
6HH8QLWHG6WDWHVY$GHVLGD)G WK&LU
FLWDWLRQRPLWWHG
7KH3ODQDVVHUWVWKDWWKHGLVWULFWFRXUWLPSURSHUO\DSSOLHG
WKHODZRIWKHFDVHGRFWULQHWRSUHYHQWFRQVLGHUDWLRQRIWKH
'52¶VYDOLGLW\XQGHU(5,6$$FFRUGLQJWRWKH3ODQ-XGJH
+RRG¶V 2UGHU DQG 2SLQLRQ QHYHU PDGH DQ\ ILQGLQJV
ZLWK UHVSHFW WR WKLV DVSHFW RI WKH '52¶V YDOLGLW\ -XGJH
+RRGWKH3ODQFRQWHQGVRQO\FRQVLGHUHGZKHWKHUWKH'52
ZDVLVVXHGIROORZLQJDVKDPKHDULQJLQWKHVWDWHFRXUW6LQFH
-XGJH +RRG OLPLWHG KHU 2UGHU DQG 2SLQLRQ WR WKH VKDP
KHDULQJ LVVXH WKH 3ODQ DUJXHG WKDW -XGJH %RUPDQ FRXOG
FRQVLGHUWKHVHSDUDWHPDWWHURIZKHWKHUWKHRUGHUZDVYDOLG
XQGHU(5,6$-XGJH%RUPDQGLVDJUHHG,QKLVHVWLPDWLRQ
-XGJH +RRG¶V 2UGHU DQG 2SLQLRQ IRXQG WKDW WKH '52¶V
YDOLGLW\VKRXOGEHGHFLGHGE\WKHVWDWHFRXUWDQGWKLVZDVODZ
RIWKHFDVH
1R 5RXVHY'DLPOHU&KU\VOHU&RUS
7KH GLVWULFW FRXUW GLG QRW VSHFLILFDOO\ UHIHU WR %XUIRUG +RZHYHU LWV
FRPPHQW DERXW ³UHVSHFW IRU VWDWH GRPHVWLF UHODWLRQV ODZ´ LQGLFDWHV WKDW LW
UHOLHG RQ WKLV DEVWHQWLRQ GRFWULQH
$FDUHIXOUHYLHZRI-XGJH+RRG¶V2UGHUDQG2SLQLRQ
VKRZV WKDW WKH RQO\ LVVXH VKH GHFLGHG ZLWK UHVSHFW WR WKH
'52¶VYDOLGLW\ZDVZKHWKHUWKHRUGHUZDVLVVXHGSXUVXDQWWR
D VKDP SURFHHGLQJ 0RUHRYHU VKH H[SUHVVO\ VWDWHG WKDW
³>Z@KHWKHUWKH4'52PHWWKHUHTXLUHPHQWVRI(5,6$LVQRW
LQ GLVSXWH RU DW WKH YHU\ OHDVW WKLV LVVXH KDV QRW EHHQ
DGGUHVVHG E\ HLWKHU SDUW\´ %HFDXVH -XGJH +RRG GLG QRW
PDNHDILQGLQJDERXWWKH'52¶VYDOLGLW\XQGHU(5,6$LWZDV
DQDEXVHRIGLVFUHWLRQIRU-XGJH%RUPDQWRKROGWKDWWKHODZ
RIWKHFDVHGRFWULQHEDUUHGKLPIURPFRQVLGHULQJWKLVLVVXH
%$EVWHQWLRQ
7KLV &RXUW UHYLHZV DEVWHQWLRQ GHFLVLRQV GH QRYR 6HH
+HLWPDQLVY$XVWLQ)G WK&LU FLWLQJ
/LWWHUDOY%DFK)G WK&LU 6LQFH
DEVWHQWLRQLVDQ³H[WUDRUGLQDU\DQGQDUURZH[FHSWLRQWRWKH
GXW\RID'LVWULFW&RXUWWRDGMXGLFDWHDFRQWURYHUV\SURSHUO\
EHIRUHLW´³>R@QO\WKHFOHDUHVWRIMXVWLILFDWLRQV´ZLOOZDUUDQW
DEVWHQWLRQ6HH&RORUDGR5LYHU:DWHU&RQVHUYDWLRQ'LVWY
8QLWHG6WDWHV866&W
/(GG
7KHGLVWULFWFRXUWDSSDUHQWO\GLVPLVVHGWKLVFDVHSXUVXDQW
WRWKH%XUIRUGDEVWHQWLRQGRFWULQH6HH%XUIRUGY6XQ2LO
&R 86 6&W /(G
%XUIRUG DEVWHQWLRQ LV XVHG WR DYRLG FRQIOLFW ZLWK D VWDWH¶V
DGPLQLVWUDWLRQRILWVRZQDIIDLUV6HHLG,WDSSOLHVRQO\LID
IHGHUDO FRXUW¶V GHFLVLRQ RQ D VWDWH ODZ LVVXH LV OLNHO\ WR
³LQWHUIHUH ZLWK WKH SURFHHGLQJV RU RUGHUV RI VWDWH
DGPLQLVWUDWLYHDJHQFLHV´6HH1HZ2UOHDQV3XE6HUY,QFY
&RXQFLORI1HZ2UOHDQV866&W
7KH%XUIRUGDEVWHQWLRQVKRXOGQRWEHDSSOLHG
XQOHVV DFDVHSUHVHQWV³GLIILFXOWTXHVWLRQVRIVWDWHODZ
EHDULQJ RQ SROLF\ SUREOHPV RI VXEVWDQWLDO SXEOLF LPSRUW
ZKRVHLPSRUWDQFHWUDQVFHQGVWKHUHVXOWLQWKHFDVHWKHQDW

-- 6 of 6 --