02a0307p.06

00-2459Court of Appeals for the Sixth CircuitSep 9, 2002

Full text

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
WKDW &DSWDLQ *DSF]\QVNL DFWHG RXWVLGH WKH VWDQGDUG RI D
SUXGHQW DQG UHDVRQDEOH PDULQHU LQ D FULVLV VLWXDWLRQ´ :H
DJUHH WKDW WKH LQ H[WUHPLV GRFWULQH LV UHOHYDQW WR WKH FDVH
EHIRUHXVEXWGLVDJUHHZLWKWKHGLVWULFWFRXUW¶VFRQFOXVLRQWKDW
LW H[FXVHV WKH &DSWDLQ¶V FRQGXFW UHJDUGLQJ WKH SRUWERZ
DQFKRU
&DSWDLQ *DSF]\QVNL ZDV LQGHHG SUHVHQWHG ZLWK DQ
HPHUJHQF\VLWXDWLRQWKURXJKQRIDXOWRIWKH09:KLWH7KH
EULGJH¶VIDLOXUHWRWLPHO\RSHQIRUFHGKLPWRPDNHGHFLVLRQV
TXLFNO\UHJDUGLQJZKHWKHUWKH09:KLWHVKRXOGWU\WRVWRS
VKRUWRIWKHEULGJHRUSURFHHGWKURXJKWKHGUDZDQGKRZKH
ZRXOGH[HFXWHWKDWVWUDWHJ\+LVDFWLRQVDUHWKHUHIRUHHQWLWOHG
WR EH YLHZHG XQGHU WKH OHQLHQW VWDQGDUG RI WKH LQ H[WUHPLV
GRFWULQH%XWRQFH&DSWDLQ*DSF]\QVNLGHFLGHGWRVWRSVKRUW
RIWKHEULGJHLWZDVXQUHDVRQDEOHWRGHOD\GURSSLQJWKHSRUW
ERZDQFKRU7KH09:KLWHWUDYHOHGDSSUR[LPDWHO\
IHHWIURPWKHWLPH&DSWDLQ*DSF]\QVNLUHYHUVHGWKHVKLS¶V
HQJLQHXQWLOWKHDQFKRUZDVGURSSHG$WDVSHHGWKDWVWHDGLO\
GHFUHDVHG IURP VL[ PLOHV SHU KRXU WKDW GLVWDQFH JDYH WKH
&DSWDLQDWOHDVWIRXUPLQXWHVWRFRQVLGHUWKHVWHSVQHFHVVDU\
WRVWRSWKHVKLS'URSSLQJWKHSRUWERZDQFKRUZDVRQHRI
WKHPRVWREYLRXVDQGHIIHFWLYHVWHSVWKDWKHFRXOGKDYHWDNHQ
WRVWRSWKHVKLSVKRUWRIWKHEULGJH$VDUHVXOWZHFRQFOXGH
WKDW&DSWDLQ*DSF]\QVNL¶VGHFLVLRQWRGHOD\WKHGURSSLQJRI
WKHDQFKRUFRQVWLWXWHGQHJOLJHQFHHYHQXQGHUWKHLQH[WUHPLV
GRFWULQH
,,,&21&/86,21
)RUDOORIWKHUHDVRQVVHWIRUWKDERYHZHFRQFOXGHWKDWWKH
GLVWULFWFRXUWFOHDUO\HUUHGLQDEVROYLQJWKH09:KLWHIURP
DOOUHVSRQVLELOLW\IRUWKHFROOLVLRQ:HWKHUHIRUH5(9(56(
WKHMXGJPHQWRIWKHGLVWULFWFRXUWDQG5(0$1'WKHFDVHIRU
WKHDSSRUWLRQPHQWRIIDXOWDQGRWKHUSURFHHGLQJVFRQVLVWHQW
ZLWKWKLVRSLQLRQ

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
*5266( ,/( %5,'*(
&203$1<
3ODLQWLII$SSHOODQW
Y
$0(5,&$1 67($06+,3
&203$1<
'HIHQGDQW$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1R²'HQLVH3DJH+RRG'LVWULFW-XGJH
$UJXHG$XJXVW
'HFLGHGDQG)LOHG6HSWHPEHU
%HIRUH.(,7+0225(DQG*,/0$1&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('5REHUW7&RQLDP5$<52%,1621&$5/(
'$9,(6 &OHYHODQG 2KLR IRU $SSHOODQW 7KRPDV :
(PHU\ *$5$1 /8&2: 0,//(5 3& 'HWURLW
0LFKLJDQIRU$SSHOOHH21%5,()5REHUW7&RQLDP
:LOOLDP ' &DUOH ,,, 5$< 52%,1621 &$5/(

-- 1 of 8 --

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
'$9,(6 &OHYHODQG 2KLR IRU $SSHOODQW 7KRPDV :
(PHU\'DYLG06KDIHU*$5$1/8&2:0,//(53&
'HWURLW0LFKLJDQIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
521$/'/((*,/0$1&LUFXLW-XGJH2Q6HSWHPEHU
WKH 09 + /HH :KLWH D IRRW FDUJR IUHLJKWHU
FDUU\LQJPLOOLRQSRXQGVRILURQRUHVWUXFNWKH*URVVH,OH
7ROO %ULGJH D SLYRWVZLQJLQJ GUDZEULGJH RQ WKH 7UHQWRQ
&KDQQHO RI WKH 'HWURLW 5LYHU 7KH *URVVH ,OH %ULGJH
&RPSDQ\ ILOHG VXLW DJDLQVW WKH $PHULFDQ 6WHDPVKLS
&RPSDQ\ZKLFKRZQVWKH09:KLWHVHHNLQJWRUHFRYHU
GDPDJHV WR WKH EULGJH RQ WKH EDVLV WKDW WKH FROOLVLRQ ZDV
FDXVHGE\WKH09:KLWH¶VQHJOLJHQFH)ROORZLQJDEHQFK
WULDO WKH GLVWULFW FRXUW IRXQG WKDW WKH 09 :KLWH ERUH QR
UHVSRQVLELOLW\IRUWKHDFFLGHQWDQGWKHUHIRUHGHQLHGUHFRYHU\
*URVVH,OHQRZFRQFHGHVWKDWLWZDVDWIDXOWIRUQRWWLPHO\
VZLQJLQJWKHEULGJHRSHQEXWDUJXHVRQDSSHDOWKDWWKH09
:KLWHZDVDOVRSDUWO\DWIDXOWIRUIDLOLQJWRWLPHO\VWRSZKHQ
LW KDG WKH RSSRUWXQLW\ WR GR VR )RU WKH UHDVRQV VHW IRUWK
EHORZZH5(9(56(WKHMXGJPHQWRIWKHGLVWULFWFRXUWDQG
5(0$1'WKHFDVHIRUIXUWKHUSURFHHGLQJVFRQVLVWHQWZLWK
WKLVRSLQLRQ
,%$&.*5281'
7KH*URVVH,OH7ROO%ULGJHLVDSULYDWHO\RZQHGEULGJHRYHU
WKH'HWURLW5LYHUWKDWRSHQHGWRWUDIILFLQ,WKDVDVZLQJ
VSDQLQLWVFHQWHUVHFWLRQWKDWSLYRWVRSHQ7KHVZLQJVSDQLV
IHHWORQJDQGWDNHVDSSUR[LPDWHO\RQHDQGDKDOIPLQXWHV
WRFRPSOHWHO\RSHQDIWHUWKHEULGJHWHQGHUDFWLYDWHVWKHSLYRW
PHFKDQLVP%UDFNHWLQJWKHVZLQJVHFWLRQRQERWKVLGHVDUH
IL[HGVSDQVWKDWDUHIHHWLQOHQJWK:KHQWKHVZLQJVSDQ
LVRSHQWZRIRRW³GUDZV´DUHFUHDWHGRQHLWKHUVLGHRIWKH
EULGJH¶VSLYRWSRLQW7KHEULGJHWKXVSUHVHQWVDWLJKWSDVVDJH
IRUDVKLSVXFKDVWKH09:KLWHZKLFKLVIHHWZLGH
1R *URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R

RUHQGDQJHULQJKLVFUHZ&OHPHQWY0HWUR:6LGH(OHYDWHG
5\&R) WK&LU
+H GLG QRW GR VR EHFDXVH DW WKH VDPH WLPH WKDW KH ZDV
WU\LQJ WR VWRS WKH VKLS KH GHOD\HG GURSSLQJ WKH SRUWERZ
DQFKRULQWKHXQUHDOLVWLFKRSHWKDWWKHVKLSFRXOGQHYHUWKHOHVV
SURFHHG WKURXJK WKH GUDZ %XW VWRSSLQJ WKH VKLS DQG
SURFHHGLQJWKURXJKWKHGUDZZHUHPXWXDOO\H[FOXVLYHDLPV
PDNLQJLWXQUHDVRQDEOHIRU&DSWDLQ*DSF]\QVNLWRVDFULILFH
WKHHIIRUWWRVWRSWKHVKLSLQWKHIDLQWKRSHRIVRPHKRZVWLOO
JRLQJ WKURXJK WKH GUDZ )URP WKH PRPHQW WKDW &DSWDLQ
*DSF]LQVNLGHFLGHGWRUHYHUVHWKHVKLS¶VHQJLQHKHNQHZWKDW
KLVVKLSZRXOGORVHDOLJQPHQWZLWKWKHEULGJH¶VGUDZWKXV
PDNLQJ D VDIH SDVVDJH LPSRVVLEOH +H ZDV WKHUHIRUH
REOLJDWHGIURPWKDWSRLQWIRUZDUGWRPD[LPL]HWKHHIIRUWWR
VDIHO\VWRSWKHVKLSVKRUWRIWKHEULGJH%\IDLOLQJWRSURPSWO\
GURSWKHSRUWERZDQFKRUKH³FRQWULEXWHGWRWKHFDVXDOW\´
&RPSODLQWRI$PHULFDQ([SRUW/LQHV,QF)6XSSDW

:KHWKHUWKHGLVWULFWFRXUWHUUHGLQDSSO\LQJWKHLQ
H[WUHPLVGRFWULQH
7KH09:KLWHPD\QHYHUWKHOHVVDYRLGOLDELOLW\LI&DSWDLQ
*DSF]\QVNL¶V GHOD\ LQ GURSSLQJ WKH SRUWERZ DQFKRU ZDV
UHDVRQDEOH XQGHU WKH ORZHU VWDQGDUG DSSOLFDEOH LQ D FULVLV
VLWXDWLRQ8QGHUWKHLQH[WUHPLVGRFWULQHWKHGHFLVLRQVRID
FDSWDLQDUHWREHOHQLHQWO\MXGJHGZKHQKLVRUKHUYHVVHOLVSXW
LQVXGGHQSHULOWKURXJKQRIDXOWRILWVRZQ8QLRQ2LO&RRI
&DOLIRUQLDY7KH7XJ0DU\0DOOR\)G
WK&LU ILQGLQJWKDWWKHGHIHQGDQWWDQNHU¶VGHFLVLRQ
WR LQFUHDVH LWV VSHHG WR SDVV WKH SODLQWLII YHVVHO GLG QRW
FRQVWLWXWHQHJOLJHQFHSDUWLFXODUO\LQOLJKWRIWKHIDFWWKDWWKH
GHFLVLRQZDVPDGHLQDQHPHUJHQF\VLWXDWLRQDULVLQJIURPWKH
SODLQWLII YHVVHO¶V IDXOW LQ SRVLWLRQLQJ LWVHOI DORQJVLGH WKH
GHIHQGDQW LQ WKH FHQWHU RI WKH FKDQQHO DV WKH WZR YHVVHOV
DSSURDFKHGDWXUQWKDWFRXOGQRWEHVLPXOWDQHRXVO\QHJRWLDWHG
E\ERWKRIWKHP $SSO\LQJWKLVGRFWULQHWKHGLVWULFWFRXUW
FRQFOXGHGWKDW*URVVH,OH³KDVQRWEHHQDEOHWRGHPRQVWUDWH

-- 2 of 8 --

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
IDFWRU WKDW FRQWULEXWHG WR WKH FDVXDOW\ DQG LW FRQVWLWXWHG
QHJOLJHQFH´
&DSWDLQ *DSF]\QVNL KDG WKUHH SRXQG DQFKRUV
DYDLODEOHIRULPPHGLDWHXVHRQHRQHLWKHUVLGHRIWKHERZ
DQGRQHRQWKHVWHUQ*URVVH,OHGRHVQRWFRQWHVWWKHGLVWULFW
FRXUW¶VILQGLQJWKDW&DSWDLQ*DSF]\QVNLDFWHGUHDVRQDEO\LQ
QRW GURSSLQJ WKH VWDUERDUGERZ DQFKRU EHFDXVH GRLQJ VR
PLJKWKDYHHQGDQJHUHGWKHERZWXJERDW*LYHQWKHWHVWLPRQ\
RI &DSWDLQ *DSF]\QVNL DQG WKH WZR WXJERDW FDSWDLQV WKDW
GURSSLQJWKHVWHUQDQFKRUZRXOGKDYHHQGDQJHUHGWKHFUHZRI
WKH VWHUQ WXJERDW DQG SRVVLEO\ HQWDQJOHG WKH 09 :KLWH¶V
SURSHOOHU ZH FRQFOXGH WKDW WKH GLVWULFW FRXUW¶V ILQGLQJ RI
UHDVRQDEOHQHVVLQQRWGURSSLQJWKHVWHUQDQFKRUZDVDOVRIUHH
RIHUURU
&DSWDLQ *DSF]\QVNL¶V GHOD\ LQ GURSSLQJ WKH SRUWERZ
DQFKRU XQWLO WKH VKLS ZDV RQO\ WR IHHW IURP WKH
EULGJHKRZHYHULVDQRWKHUPDWWHU7KH09:KLWHGRHVQRW
GLVSXWHWKHEULGJH¶VFODLPWKDWGURSSLQJWKHSRUWERZDQFKRU
HDUOLHUZRXOGKDYHFDXVHGWKHVKLSWRVWRSVKRUWRIWKHEULGJH
<HW&DSWDLQ*DSF]\QVNL¶VRQO\H[SODQDWLRQIRUKLVGHOD\LQ
GURSSLQJ WKH SRUWERZ DQFKRU ZDV WKDW WKH 09 :KLWH
³FRXOGQ¶WJRWKURXJKWKDWGUDZGUDJJLQJDQDQFKRU´7KDW
GHFLVLRQ ZDV QRW UHDVRQDEOH KRZHYHU EHFDXVH LW LV
FRPSOHWHO\LQFRQVLVWHQWZLWK&DSWDLQ*DSF]\QVNL¶VVWUDWHJLF
GHFLVLRQWRVWRSWKHVKLSVKRUWRIWKHEULGJH
:KHQWKH09:KLWHZDVDSSUR[LPDWHO\IHHWIURP
WKHEULGJH&DSWDLQ*DSF]\QVNLUHYHUVHGWKHHQJLQHNQRZLQJ
WKDWWKLVDFWLRQZRXOGFDXVHWKHVKLSWRYHHUWRSRUWDQGORVH
DOLJQPHQW ZLWKWKHGUDZ$IWHUWKHVKLSORVWDOLJQPHQWLW
EHFDPHLPSUDFWLFDEOHIRUWKHVKLSWRSURFHHGXQLQWHUUXSWHG
WKURXJKWKHGUDZJLYHQWKHQHDUO\SHUIHFWDQJOHUHTXLUHGWR
VWHHUDIRRWORQJIRRWZLGHVKLSWKURXJKDIRRW
RSHQLQJ6WRSSLQJWKHVKLSHIIHFWLYHO\EHFDPHWKH³ODVWFOHDU
FKDQFH´WRDYRLGWKHFROOLVLRQIURPWKDWSRLQWIRUZDUGDQGLW
ZDV WKHUHIRUH LQFXPEHQW XSRQ &DSWDLQ *DSF]\QVNL WR GR
HYHU\WKLQJKHFRXOGWRVWRSWKHVKLSZLWKRXWKLWWLQJWKHEULGJH
1R *URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R

2Q6HSWHPEHUZKLFKZDVDFOHDUVXQQ\GD\WKH
09:KLWHZDVSURFHHGLQJVRXWKRQWKH7UHQWRQ&KDQQHORI
WKH'HWURLW5LYHUWRZDUGLWVGHVWLQDWLRQEH\RQGWKH*URVVH,OH
7ROO%ULGJH7KHEULGJHRSHUDWRUVNQHZWKDWWKH09:KLWH
ZDV FRPLQJ EHFDXVH WKH VKLS KDG UDGLRHG QRWLFH WR WKH
RSHUDWRUVWKH GD\EHIRUH%ULGJHWHQGHUV'RQDOG5\DQDQG
-RKQ7RQNRYLFKWHVWLILHGWKDWWKH\H[SHFWHGWKHVKLSWRDUULYH
VKRUWO\DIWHUWKH\FDPHRQGXW\DWSPWKDWGD\
5\DQZDVSRVWHGLQWKHWROOERRWKZLWKDZDONLHWDONLH+LV
GXWLHVLQYROYHGWDNLQJWROOVIURPSDVVLQJWUDIILFDQGORZHULQJ
WKHWUDIILFJDWHVWRFOHDUWKHEULGJHRIYHKLFOHVZKHQHYHUWKH
EULGJHQHHGHGWREHRSHQHGIRUULYHUWUDIILF7RQNRYLFKZDV
VWDWLRQHG LQ WKH RIILFH ZKLFK KDV D ZLQGRZ ORRNLQJ
QRUWKZDUGRQWRWKH7UHQWRQ&KDQQHO$VWKHEULGJHWHQGHU
PDQQLQJ WKH RIILFH 7RQNRYLFK ZDV UHVSRQVLEOH IRU
PRQLWRULQJUDGLRFRPPXQLFDWLRQVIURPWKH&RDVW*XDUGDQG
UHVSRQGLQJWRUHTXHVWVWRRSHQWKHEULGJHE\YHVVHOVRQWKH
FKDQQHO+HZDVDOVRFKDUJHGZLWKRSHUDWLQJWKHPHFKDQLVP
IRURSHQLQJWKHEULGJHZKLFKLVVLWXDWHGRQWRSRIWKHRIILFH
DQGDFFHVVHGE\ODGGHU
0RUHWKDQDPLOHDERYHWKHEULGJHWKH09:KLWHSLFNHG
XSWZRWXJERDWVWRKHOSFRQWUROWKHVKLS¶VODWHUDOPRYHPHQW
DV LW SDVVHG WKURXJK RQH RI WKH EULGJH¶V GUDZV 5LFKDUG
6LEEHUVHQFDSWDLQRIWKHWXJERDWWKDWDWWDFKHGLWVHOIWRWKH
09 :KLWH¶V ERZ WHVWLILHG WKDW KH LQIRUPHG RQH RI WKH
EULGJHWHQGHUV RYHU WKH UDGLR WKDW WKH VKLS DQG LWV WXJERDWV
ZRXOG EH DW WKH EULGJH LQ WKH QH[W WR PLQXWHV
7RQNRYLFK WKH EULGJHWHQGHU ZKR UHFHLYHG WKH FDOO
DFNQRZOHGJHG WKH LQIRUPDWLRQ E\ VD\LQJ DFFRUGLQJ WR
&DSWDLQ6LEEHUVHQWKDW³WKH\ZRXOGEHORRNLQJIRUXV´
$IWHU WKH WZR WXJERDWV EHJDQ PRYLQJ GRZQ WKH ULYHU DW
EHWZHHQILYH DQGVHYHQPLOHVSHUKRXU&DSWDLQ6LEEHUVHQ
DJDLQFDOOHGWKHEULGJHE\UDGLR+HVDLG³:H¶UHRQRXUZD\
GRZQZH¶OOEHGRZQWKHUHLQDERXWILYHPLQXWHVRUVR´WR
ZKLFK7RQNRYLFKUHVSRQGHG³)LQH:HVHH\RX:H¶OOEH
UHDG\IRU\RX´&DSWDLQ6LEEHUVHQUDGLRHGDVHFRQGWLPHWR

-- 3 of 8 --

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
WHOOWKHEULGJHWHQGHUVWKDWKHZRXOGEHJLYLQJDZKLVWOHVLJQDO
IRUWKHEULGJHWRRSHQLQMXVWDFRXSOHRIPLQXWHVDQGWRDVN
WKHPLIWKH\ZRXOGEHUHDG\WRRSHQWKHEULGJH7RQNRYLFK
UHSOLHG³)LQHRND\´7KHZKLVWOHVLJQDOWRRSHQWKHEULGJH
ZDVJLYHQE\&DSWDLQ6LEEHUVHQRQKLVWXJERDW¶VZKLVWOHMXVW
DIWHUWKH09:KLWHUHDFKHG5HG%XR\WKHSRLQWLQWKH
FKDQQHOZKHUHLWLVFXVWRPDU\WRJLYHWKHVLJQDOZKHQWRZLQJ
DVKLS%XWWKHEULGJHGLGQRWUHVSRQGVR&DSWDLQ6LEEHUVHQ
EOHZDVHFRQGRSHQEULGJHVLJQDORQKLVWXJERDW¶VZKLVWOH
+HDOVRUDGLRHG7RQNRYLFKIRUDWKLUGWLPHEXWUHFHLYHGQR
UHSO\
'HVSLWH WKHVH UDGLR FDOOV DQG ZKLVWOH VLJQDOV &DSWDLQ
6LEEHUVHQVDZYHKLFXODUWUDIILFVWLOOPRYLQJRQWKHWROOEULGJH
6RGLG5LFKDUG*DVFRWKHORRNRXWRQWKHERZRIWKH09
:KLWHDVWKHVKLSDSSURDFKHG*UHHQ%XR\DQG5HG%XR\
7KHVHEXR\VORFDWHGDSSUR[LPDWHO\IHHWDERYHWKH
EULGJHDUHHIIHFWLYHO\WKHSRLQWRIQRUHWXUQIRUDVKLSWKHVL]H
RIWKH09:KLWH7KHFXVWRPDQGSUDFWLFHRIWKHEULGJHZDV
WREHJLQRSHQLQJWKHSLYRWDOVSDQIRUDVKLSQRODWHUWKDQ5HG
%XR\ZKLFKLVIHHWQRUWKRI%XR\VDQG
8SRQUHDFKLQJWKHSRLQWRIQRUHWXUQ&DSWDLQ6LEEHUVHQ
EOHZWKHGDQJHUVLJQDOWRWKHEULGJHRQKLVWXJERDW¶VZKLVWOH
-RKQ*DSF]\QVNLFDSWDLQRIWKH09:KLWHDOVREOHZWKH
GDQJHUVLJQDOZKLFKKHUHSHDWHGDVWKHVKLSSDVVHGWKHEXR\V
7KHVH GDQJHU VLJQDOV²HDFK RQH FRQVLVWLQJ RI ILYH VKRUW
ZKLVWOH EODVWV²ZHUH KHDUG E\ ZLWQHVVHV RQ WKH VKRUH ,Q
DGGLWLRQWRDOOWKHZKLVWOHV0LFKDHO0HKDOODSOHDVXUHERDWHU
ZKRZDVQH[WWRWKHEULGJHDQGVLWWLQJRQWKHWRSRIKLVERDW
DW WKH HOHYDWLRQ RI WKH EULGJHWHQGHU¶V RIILFH DERXW IHHW
DERYH WKH ZDWHU \HOOHG WR 7RQNRYLFK WKDW WKH VKLS ZDV
DSSURDFKLQJ WKH EULGJH %XW WKH EULGJH UHPDLQHG FORVHG
$OOHQ:LOVRQDQRWKHUSOHDVXUHERDWHULQWKHYLFLQLW\WHVWLILHG
WKDW WKH EULGJH¶V \HOORZ OLJKW D VLJQDO WKDW WKH EULGJH LV
RSHQLQJZDVIODVKLQJDVWKHVKLS¶VERZSDVVHG*UHHQ%XR\
DQG5HG%XR\
1R *URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R

ZKHQLWEHFRPHVWKHGXW\RIWKHYHVVHOLISRVVLEOHWR
VWRSDQGLIQHFHVVDU\WRJRDVWHUQ
&OHPHQWY0HWUR:6LGH(OHYDWHG5\&R)
WK&LU LQWHUQDOFLWDWLRQVRPLWWHG
7KH GLVWULFW FRXUW IRXQG WKDW WKH 09 :KLWH KDG EHHQ
LQYLWHG WR SURFHHGEHFDXVHWKHEULGJHRIIHUHGDVVXUDQFHLQ
IRXUUDGLRFRQYHUVDWLRQVWKUHHRIWKHPMXVWPLQXWHVEHIRUHWKH
VKLSDUULYHGWKDWLWZDVSUHSDUHGWRRSHQ)XUWKHUPRUHWKH
EULGJH VSHFLILFDOO\ DFNQRZOHGJHG WKDW LW VDZ WKH VKLS
DSSURDFKLQJDQGJDYHQRVLJQDOWKDWLWZRXOGQRWWLPHO\RSHQ
:H DUH RI WKH RSLQLRQ WKDW WKHVH H[FKDQJHV FRQVWLWXWHG
FRPSOLDQFHZLWKWKH&RDVW*XDUGUHJXODWLRQUHOLHGXSRQE\
*URVVH ,OH $V D UHVXOW ZH KDYH QR QHHG WR UHVROYH WKH
DSSDUHQWFRQWUDGLFWLRQEHWZHHQWKH&RDVW*XDUGUHJXODWLRQ
DQGWKHLQYLWDWLRQWRSURFHHGGRFWULQHVHWIRUWKDERYH:H
WKHUHIRUHFRQFOXGHWKDW WKHGLVWULFWFRXUW¶VILQGLQJWKDW
WKH09:KLWHKDGEHHQLQYLWHGWRSURFHHGZDVQRW
FOHDUO\HUURQHRXVDQG WKHGLVWULFWFRXUWSURSHUO\IRXQG
WKDWDVDUHVXOWRIKDYLQJEHHQLQYLWHGWRSURFHHGWKH09
:KLWH¶V SURJUHVV WRZDUG WKH EULGJH GLG QRW FRQVWLWXWH
FRQWULEXWRU\QHJOLJHQFH
:KHWKHUWKH09:KLWHZDVQHJOLJHQWLQIDLOLQJWR
WLPHO\GURSLWVDQFKRUV
*URVVH ,OH QH[W FRQWHQGV WKDW WKH GLVWULFW FRXUW HUUHG LQ
FRQFOXGLQJ WKDW &DSWDLQ *DSF]\QVNL ZDV QRW QHJOLJHQW LQ
IDLOLQJ WR WLPHO\ GURS WKH 09 :KLWH¶V VWHUQ RU SRUWERZ
DQFKRUV $ VKLS¶V FDSWDLQ LQ WKH QDYLJDWLRQ RI KLV RU KHU
YHVVHOLVKHOGWRWKHVWDQGDUG³RIVXFKUHDVRQDEOHFDUHDQG
PDULWLPH VNLOO DV SUXGHQW QDYLJDWRUV HPSOR\ IRU WKH
SHUIRUPDQFHRIVLPLODUVHUYLFH´([[RQY6RIHF,QF)G
WK&LU LQWHUQDOTXRWDWLRQPDUNVRPLWWHG
)DLOLQJWRWLPHO\GURSDQDQFKRUFDQFRQVWLWXWHQHJOLJHQFH
&RPSODLQWRI$PHULFDQ([SRUW/LQHV,QF)6XSS
6'1< KROGLQJWKDWWKH³>I@DLOXUHWRUHOHDVHWKH
VWDUERDUGDQFKRUXQWLOWKHPRPHQWRIFROOLVLRQZDVDWOHDVWD

-- 4 of 8 --

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
UHVSRQVLYHVLJQDOWKXVYLRODWLQJWKLVUHJXODWLRQDQGFDXVLQJ
WKHFROOLVLRQ
%XWDZHOOHVWDEOLVKHGUXOHRIDGPLUDOW\ODZKROGVWKDWD
VKLSWKDWJLYHVDWLPHO\VLJQDOWRRSHQDEULGJHLVHQWLWOHGWR
DVVXPHWKDWWKHEULGJHZLOOEHSURPSWO\RSHQHGIRUWKHVKLS¶V
SDVVDJH7KH³LQYLWDWLRQWRSURFHHG´UXOHKDVEHHQDSSOLHGLQ
QXPHURXVFDVHVLQWKLVDQGRWKHUFLUFXLWV&LW\RI&OHYHODQG
Y0F,YHU)G WK&LU KROGLQJWKDWWKH
YHVVHOZDVQRWOLDEOHIRUSURFHHGLQJWRZDUGWKHGUDZEULGJH
EHFDXVH WKH EULGJH¶VIDLOXUHWRVLJQDOWKDWLWZDVXQDEOHWR
RSHQ FRQVWLWXWHG DQ LQYLWDWLRQ WR SURFHHG /LDELOLW\ LQ
$GPLUDOW\ IRU &ROOLVLRQ EHWZHHQ 9HVVHO DQG 'UDZEULGJH
6WUXFWXUH$/5)HG ³%HFDXVHWKH
ULJKWRIYHVVHOVWRXVHQDYLJDEOHZDWHUVLVSDUDPRXQWDYHVVHO
WKDWVLJQDOVSURSHUO\IRUSDVVDJHWKURXJKDGUDZEULGJHKDVD
ULJKWWRDVVXPHWKHEULGJHZLOOWLPHO\EHRSHQHGIRULWDQGWR
DSSURDFKWKHEULGJHRQWKDWEDVLV´ FI0LFKLJDQ%HOO7HO
&RY&RSSHU5DQJH55&R)G WK&LU
KROGLQJWKHGHIHQGDQWYHVVHOKDGQRWEHHQLQYLWHGWR
SURFHHG DQG ZDV WKHUHIRUH SDUWO\ OLDEOH IRU WKH FROOLVLRQ
EHFDXVH LW DSSURDFKHG WKH EULGJH ZLWKRXW SULRU
FRPPXQLFDWLRQDQGWKHEULGJH¶VZDUQLQJOLJKWVZHUHYLVLEOH
DVVLJQDOVWKDWWKHEULGJHZDVXQDEOHWRRSHQ
$QRIWHQTXRWHGVWDWHPHQWRIWKHLQYLWDWLRQWRSURFHHGUXOH
LVWKDW
>D@YHVVHOKDYLQJJLYHQSURSHUVLJQDOWRRSHQWKHEULGJH
DQGSUXGHQWO\SURFHHGLQJXQGHUVORZVSHHGKDVLQWKH
DEVHQFHRISURSHUZDUQLQJWKHULJKWWRDVVXPHWKDWWKH
EULGJH ZLOO EH WLPHO\ RSHQHG IRU SDVVDJH 6KH LV QRW
ERXQGWRKHDYHWRXQWLOWKHEULGJH KDVEHHQVZXQJRU
UDLVHGDQGORFNHGDQGWRFULWLFDOO\H[DPLQHWKHVLWXDWLRQ
EHIRUH SURFHHGLQJ EXW PD\ FDUHIXOO\ SURFHHG DW VORZ
VSHHGXSRQWKHDVVXPSWLRQWKDWWKHEULGJHZLOORSHQLQ
UHVSRQVH WR WKH VLJQDO DQG PD\ VR SURFHHG XQWLO VXFK
WLPHDVLWDSSHDUVE\SURSHUZDUQLQJRULQUHDVRQDEOH
YLHZRIWKHVLWXDWLRQWKDWWKHEULGJHZLOOQRWEHRSHQHG
1R *URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R

%XWQHLWKHUWKH09:KLWHQRUWKHWXJERDWVVDZWKHOLJKWRU
DQ\ RWKHU VLJQ WKDW WKH EULGJH ZDV DERXW WR RSHQ DQG WKH
GLVWULFWFRXUWPDGHQRILQGLQJDVWRZKHWKHUWKH\HOORZOLJKW
ZDVLQIDFWRQRURII*DVFRWKHORRNRXWWHVWLILHGWKDWKHZDV
DZDUHWKDWDIODVKLQJ\HOORZOLJKWLVRQHPHWKRGWKDWDEULGJH
FDQXVHWRVLJQDOWKDWLWLVDERXWWRRSHQEXWVDLGWKDWKHGLG
QRWVSHFLILFDOO\ORRNIRUVXFKDOLJKWRQWKHGD\RIWKHDFFLGHQW
EHFDXVH LW ZRXOG KDYH EHHQ GLIILFXOW WR VHH LQ VXQQ\
FRQGLWLRQV,QVWHDGKHIRFXVHGRQRWKHUVLJQVWKDWWKHEULGJH
ZDVRSHQLQJVXFKDVWKHWUDIILFRQWKHEULGJH
6RRQDIWHUWKHVKLSSDVVHGWKHSRLQWRIQRUHWXUQ*DVFRVDZ
D FDU KXUULHGO\ EDFN DZD\ IURP WKH FHQWHU VHFWLRQ RI WKH
EULGJH,QWHUSUHWLQJWKLVDVDVLJQWKDWWKHEULGJHZDVDERXWWR
RSHQ*DVFRWROG&DSWDLQ*DSF]\QVNLWKDWWKHYHKLFXODUWUDIILF
KDG ILQDOO\ FOHDUHG DZD\ %XW WKHQ *DVFR VDZ WZR PRUH
YHKLFOHVGULYHRQWRWKHFHQWHUVHFWLRQ+HDULQJWKLV&DSWDLQ
*DSF]\QVNLGHFLGHGWKDWKHKDGWRVWRSWKH09:KLWHLQ
RUGHUWRDYRLGDFROOLVLRQ,QDWWHPSWLQJWRGRVR&DSWDLQ
*DSF]\QVNLILUVWUDGLRHGWRWKHWXJERDWVWKDWKHZDVJRLQJWR
EDFNGRZQWKH09:KLWH¶VHQJLQHHYHQWKRXJKWKLVZRXOG
FDXVHWKHERZRIWKHIUHLJKWHUWRVZLQJWRWKHSRUWVLGH+H
WROG&DSWDLQ6LEEHUVHQWRPRYHKLVWXJERDWIURPWKHERZWR
WKHVWDUERDUGIODQNRIWKHVKLSLQRUGHUWRSDUWLDOO\FRXQWHUDFW
WKHPRYHPHQWWRSRUW7KH09:KLWH¶VHQJLQHZDVWKHQSXW
LQWRUHYHUVHFDXVLQJWKHERZWRYHHUWRSRUWDQGWKXVORVH
DOLJQPHQWZLWKWKHSODQQHGGUDZWKURXJKWKHRSHQEULGJH
6RPHWLPH DIWHU WKHVH PHDVXUHV ZHUH WDNHQ WKH EULGJH
ILQDOO\EHJDQWRRSHQ:KHQWKH09:KLWHZDVMXVWWR
IHHWIURPWKHEULGJHWKHVKLSGURSSHGLWVSRXQG
SRUWERZDQFKRU7KH09:KLWHKDGFRPHWRDQDOPRVW
FRPSOHWHVWRSZKHQLWUHDFKHGWKHEULGJHEXWLWVERZWDSSHG
WKHVWDWLRQDU\VSDQRQWKHHDVWVLGHRIWKHEULGJH%HFDXVHRI
WKHKXJHPRPHQWXPRIDVKLSODGHQZLWKPLOOLRQSRXQGV
RILURQRUHWKLVVOLJKWWDSZDVHQRXJKWRNQRFNWKHHQWLUH
IRRWVSDQLQWRWKHZDWHU)RUWXQDWHO\QRRQHZDVLQMXUHG
7KHEULGJHDVLWWXUQHGRXWKDGIXOO\RSHQHGE\WKHWLPHWKH
VKLSKLWWKHVWDWLRQDU\VSDQ

-- 5 of 8 --

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
:K\ WKH EULGJH IDLOHG WR WLPHO\ RSHQ LV OHVV WKDQ FOHDU
7RQNRYLFKWHVWLILHGWKDWKHVLPSO\WKRXJKWKHKDGPRUHWLPH
WRRSHQWKHEULGJHWKDQKHGLGDQGWKDWKHGLGQRWKHDUWKH
VKLS¶VVHFRQGGDQJHUVLJQDO5\DQRIIHUHGQRMXVWLILFDWLRQ
7KHUHZDVWHVWLPRQ\IURPRQHRIWKHRIIGXW\EULGJHWHQGHUV
KRZHYHUWKDW5\DQDSSHDUHGWRKDYHEHHQGULQNLQJDOFRKRO
ZKHQ KH UHSRUWHG IRU GXW\ DW SP RQ WKH GDWH RI WKH
DFFLGHQW
*URVVH,OHVXHG$PHULFDQ6WHDPVKLSWRUHFRYHUGDPDJHVWR
WKHEULGJH$IWHUDVHYHQZHHNEHQFKWULDOWKHGLVWULFWFRXUW
IRXQG WKDW WKH EULGJHWHQGHUV KDG IDLOHG WR WLPHO\ RSHQ WKH
EULGJHIRUWKH09:KLWHGHVSLWHUHFHLYLQJPXOWLSOHQRWLFHV
RI WKH VKLS¶V DSSURDFK 7KH GLVWULFW FRXUW FRQFOXGHG WKDW
*URVVH,OH¶V³DFWLRQVDQGODFNRIDFWLRQLQWKLVPDWWHUFDXVHG
WKH >FR@OOLVLRQ´ DQG WKDW WKH 09 :KLWH ERUH QR
UHVSRQVLELOLW\ IRU WKH DFFLGHQW *URVVH ,OH WKHQ ILOHG WKLV
WLPHO\DSSHDO
,,$1$/<6,6
$ 6WDQGDUGRIUHYLHZ
7KH GLVWULFW FRXUW¶V DSSRUWLRQPHQW RI IDXOW LV VXEMHFW WR
UHYLHZXQGHUWKHFOHDUO\HUURQHRXVVWDQGDUG,QUH&OHYHODQG
7DQNHUV,QF)G WK&LU DIILUPLQJ
WKHGLVWULFWFRXUW¶VDSSRUWLRQPHQWRIIDXOWLQDQDGPLUDOW\FDVH
XVLQJWKHFOHDUO\HUURQHRXVVWDQGDUG 7RGG6KLS\DUGV&RUS
Y 7XUELQH 6HUY ,QF )G WK &LU
KROGLQJWKDWLQDQDGPLUDOW\FDVH³TXHVWLRQVFRQFHUQLQJ
WKH H[LVWHQFH RI QHJOLJHQFH DQG SUR[LPDWH FDXVDWLRQ DUH
WUHDWHGDVIDFWXDOLVVXHVDQGDUHWKXVVXEMHFWWRWKHFOHDUO\
HUURQHRXVVWDQGDUG´ $ILQGLQJ³LVFOHDUO\HUURQHRXVZKHUH
DOWKRXJK WKHUH LV HYLGHQFH WR VXSSRUW WKDW ILQGLQJ WKH
UHYLHZLQJFRXUWRQWKHHQWLUHHYLGHQFHLVOHIWZLWKWKHGHILQLWH
DQG ILUP FRQYLFWLRQ WKDW D PLVWDNH KDV EHHQ FRPPLWWHG´
.DODPD]RR5LYHU6WXG\*URXSY5RFNZHOO,QWHUQ&RUS
)G WK &LU LQWHUQDO TXRWDWLRQ PDUNV
RPLWWHG
1R *URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R

RSHQLQJRQWLPH)XUWKHUPRUHZHDUHQRWLQDSRVLWLRQWR
VHFRQGJXHVVWKHGLVWULFWFRXUW¶VILUVWKDQGFRUURERUDWLRQRI
*DVFR¶V VWDWHPHQW DERXW WKH ORZ YLVLELOLW\ RI WKH \HOORZ
IODVKLQJOLJKWLQWKHGD\WLPH*DVFR¶VGHFLVLRQWRIRFXVRQWKH
PRUHHDVLO\REVHUYHGVLJQVRIDFWLYLW\RQWKHEULGJHUDWKHU
WKDQ VHDUFK IRU D IODVKLQJ \HOORZ OLJKW ZDV WKHUHIRUH D
MXGJPHQW FDOO WKDW D YLJLODQW FRPSHWHQW ORRNRXW FRXOG
UHDVRQDEO\KDYHPDGHXQGHUWKHFLUFXPVWDQFHV:HWKHUHIRUH
FRQFOXGHWKDWWKHGLVWULFWFRXUWGLGQRWHUULQILQGLQJ*DVFRWR
KDYHEHHQDSURSHUORRNRXW
,QDGGLWLRQHYHQLI*DVFR¶VIDLOXUHWRORRNIRUWKHIODVKLQJ
\HOORZOLJKWKDGUHQGHUHGKLPDQLPSURSHUORRNRXWWKH09
:KLWHFRXOGPHHWLWVEXUGHQWRUHEXWWKHSUHVXPSWLRQRIIDXOW
XQGHUWKHUXOHRI7KH3HQQV\OYDQLD7KLVLVEHFDXVH*DVFR
REVHUYHGFDUVHQWHULQJWKHVZLQJVSDQDIWHUWKH09:KLWH
KDGSDVVHGWKHSRLQWRIQRUHWXUQ$VVXPLQJWKDWWKH\HOORZ
OLJKWZDVLQIDFWIODVKLQJDWWKDWWLPHDQGWKDW*DVFRKDGVHHQ
LWWKHIDFWWKDWFDUVZHUHVWLOOGULYLQJDFURVVWKHEULGJHZRXOG
KDYHOHGWKH09:KLWHWRUHDVRQDEO\EHOLHYHWKDWWKH\HOORZ
OLJKW ZDV JLYLQJ IDOVH LQIRUPDWLRQ 7KH IDLOXUH WR VHH WKH
\HOORZ OLJKW WKHUHIRUH FRXOG QRW KDYH EHHQ D FDXVH RI WKH
FROOLVLRQEHFDXVH&DSWDLQ*DSF]\QVNL¶VGHFLVLRQWRVWRSVKRUW
RIWKHEULGJHZRXOGQRWKDYHFKDQJHG
:KHWKHUWKH09:KLWHZDVDWIDXOWLQSURFHHGLQJ
WRZDUGWKHEULGJH
*URVVH,OHIXUWKHUDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGLQQRW
DWWULEXWLQJIDXOWWRWKH09:KLWHEDVHGRQLWVYLRODWLRQRIWKH
IROORZLQJ&RDVW*XDUGUHJXODWLRQ
>7@KHRSHUDWRURIHDFKYHVVHOUHTXHVWLQJDGUDZEULGJHWR
RSHQVKDOOVLJQDOWKHGUDZWHQGHUDQGWKHGUDZWHQGHUVKDOO
DFNQRZOHGJHWKDWVLJQDO7KHVLJQDOVKDOOEHUHSHDWHG
XQWLODFNQRZOHGJHGLQVRPHPDQQHUE\WKHGUDZWHQGHU
EHIRUHSURFHHGLQJ
&)5† D *URVVH,OHFRQWHQGVWKDWWKH09
:KLWH SURFHHGHG WRZDUG WKH EULGJH LQ WKH DEVHQFH RI D

-- 6 of 8 --

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
%XW *URVVH ,OH DUJXHV WKDW *DVFR ZDV QHYHUWKHOHVV DQ
LPSURSHU ORRNRXW EHFDXVH KH ³GLG QRW NQRZ WKH UHVSRQVH
VLJQDOIRUZKLFKKHVKRXOGEHORRNLQJ´$FFRUGLQJWR*URVVH
,OH*DVFRVKRXOGKDYHEHHQORRNLQJIRUWKHEULGJH¶VIODVKLQJ
\HOORZ OLJKW ZKLFK LV RQH RI WKH PHWKRGV WKDW WKH &RDVW
*XDUG KDV DSSURYHG IRU D GUDZEULGJH WR VLJQDO WKDW LW LV
SUHSDULQJWRRSHQ&)5† F LLL
*DVFRWHVWLILHGFRQWUDU\WR*URVVH,OH¶VFKDUDFWHUL]DWLRQRI
KLVVWDWHPHQWVWKDWKHZDVDZDUHWKDWDIODVKLQJ\HOORZOLJKW
PD\EHXVHGE\DEULGJHWRVLJQDOWKDWLWLVRSHQLQJDQGWKDW
LIKHKDGVHHQVXFKDOLJKWKHZRXOGKDYHUHSRUWHGLW%XW
*DVFRH[SODLQHGWKDWKHGRHVQRWVSHFLILFDOO\ORRNIRUIODVKLQJ
\HOORZOLJKWVGXULQJWKHGD\OLJKWKRXUVEHFDXVHWKH\DUHWRR
GLIILFXOWWRVHHDWVXFKWLPHV5DWKHUKHORRNVIRURWKHUVLJQV
WKDWDEULGJHLVSUHSDULQJWRRSHQVXFKDVWKHORZHULQJRIWKH
JDWHVWKDWSUHYHQWYHKLFOHVIURPHQWHULQJWKHVZLQJVSDQDQG
WKHFHVVDWLRQRIWUDIILFIORZDFURVVWKHEULGJH7KHTXHVWLRQ
WKHUHIRUH EHFRPHV ZKHWKHU *DVFR¶V GHFLVLRQ QRW WR ORRN
VSHFLILFDOO\ IRU WKH \HOORZ OLJKW UHQGHUHG KLP DQ LPSURSHU
ORRNRXW
'XULQJWKHFRXUVHRIWKHWULDOWKHGLVWULFWMXGJHSHUVRQDOO\
YLHZHGWKHRSHQLQJRIWKHSLYRWDOVSDQIURPWKHSLORWKRXVHRI
DVKLSVLPLODUWRWKH09:KLWHDVLWDSSURDFKHGWKH*URVVH
,OH7ROO%ULGJH7KHMXGJHIRXQGWKDW
RQDFOHDUVXQQ\GD\QRWXQOLNHWKHGD\RIWKH>FR@OOLVLRQ
WKH \HOORZ VLJQDO OLJKW ZKLOH YLVLEOH LV QRW YHU\
YLVLEOH WR WKH QDNHG H\H GXULQJ VXQQ\ GD\OLJKW KRXUV
+RZHYHUWKHDFWLYLW\RQWKHEULGJHLVYHU\YLVLEOHIURP
WKHSLORWKRXVHRIWKHYHVVHODQGE\LQIHUHQFHZRXOGEH
PRUHYLVLEOHIURPWKHERZZKLFKLVDSSUR[LPDWHO\
IHHWIRUZDUGRIWKHSLORWKRXVH
7KHUHLVQRGLVSXWHWKDW*DVFRFRPSHWHQWO\REVHUYHGDQG
DFFXUDWHO\UHSRUWHGWKHDFWLRQVRIWKHJDWHVDQGWUDIILFRQWKH
EULGJHDVZHOODVWKHQRQRSHQLQJVWDWXVRIWKHEULGJHLWVHOI
DQG WKDW DOO RI WKHVH LQGLFDWRUV SRLQWHG WR WKH EULGJH QRW
1R *URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R

% 7KHGLVWULFWFRXUW¶VILQGLQJV
:KHWKHU EULGJHWHQGHU 5\DQ KDG EHHQ GULQNLQJ
DOFRKRO
*URVVH,OHFRQWHQGVWKDWWKHGLVWULFWFRXUWHUUHGLQILQGLQJ
WKDWEULGJHWHQGHU5\DQKDGEHHQGULQNLQJRQWKHGD\RIWKH
DFFLGHQW DQG WKDW WKLV ILQGLQJ ³LV H[WUHPHO\ LPSRUWDQW
EHFDXVHLWPD\H[SODLQRWKHUZLVHXQH[SODLQDEOHFRQFOXVLRQV
WKH&RXUWUHDFKHGDERXWWKHDFWLRQVRIWKHYHVVHODQGPD\
KDYHRWKHUZLVHWDLQWHGKHURSLQLRQ´7KHIROORZLQJSDVVDJH
LQ WKH GLVWULFW FRXUW¶V RSLQLRQ GLVFXVVHV 5\DQ¶V DOOHJHG
GULQNLQJ
5\DQZDVVDLGWRKDYHUHFHLYHGDOFRKROLFEHYHUDJHVDV
JLIWVZKLOHWHQGLQJWKHEULGJH*HUDOG/DNRVDQRIIGXW\
EULGJHWHQGHUDOVRWHVWLILHGWKDW5\DQKDGEHHQGULQNLQJ
WKDW GD\ 7KHVH IDFWV GR QRW LQGLFDWH WKDW WKH
EULGJHWHQGHUVZHUHQRWJHQHUDOO\FRPSHWHQWWRRSHUDWH
WKHEULGJH7KH&RXUWILQGVWKDWWKHEULGJHWHQGHUVZHUH
JHQHUDOO\FRPSHWHQWWRRSHUDWHWKHEULGJH+RZHYHURQ
6HSWHPEHUQHLWKHUEULGJHWHQGHUH[KLELWHGWKLV
JHQHUDOFRPSHWHQFHLQRSHQLQJWKHEULGJH
$OWKRXJK WKH GLVWULFW FRXUW¶V RSLQLRQ UHIHUV WR /DNRV¶V
WHVWLPRQ\LQWKHDERYHSDVVDJHLWLVQRWFOHDUWKDWWKHGLVWULFW
FRXUWIRXQGDVDPDWWHURIIDFWWKDW5\DQKDGEHHQGULQNLQJRQ
WKHGD\RIWKHDFFLGHQW(YHQLIWKHGLVWULFWFRXUWLVSUHVXPHG
WRKDYHPDGHVXFKDILQGLQJKRZHYHUZHFRQFOXGHWKDWWKH
ILQGLQJZDVVXIILFLHQWO\VXSSRUWHGE\WKHUHFRUGDVQRWWREH
FOHDUO\HUURQHRXV/DNRV¶VWHVWLPRQ\KDGVHYHUDOLQGLFLDRI
FUHGLELOLW\)LUVW/DNRVNQHZ5\DQSHUVRQDOO\DQGZDVWKXV
OLNHO\WREHDEOHWRGHWHFWFKDQJHVLQKLVGHPHDQRU6HFRQG
/DNRVZDVRQHRIWKHEULGJHWHQGHUVRQWKHVKLIWWKDWHQGHG
MXVWEHIRUH5\DQFDPHRQGXW\DWSPRQWKHGD\RIWKH
DFFLGHQW)LQDOO\/DNRVWHVWLILHGWKDWZKHQKHVDZDQGVSRNH
WR 5\DQ DW WKH VKLIW FKDQJH 5\DQ DSSHDUHG WR KDYH EHHQ
GULQNLQJEHFDXVHKLVVSHHFKZDVVOXUUHGDQGKHKDGDEURZQ
SDSHUEDJZLWKKLP/DNRVWKHUHIRUHVDZ5\DQILUVWKDQGDQG

-- 7 of 8 --

*URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R
1R
PDGHVSHFLILFREVHUYDWLRQVYHU\QHDULQWLPHWRWKHSP
FROOLVLRQ
2Q WKH RWKHU KDQG LW ZDV FRPPRQ IRU EULGJHWHQGHUV WR
UHFHLYHJLIWVRIDOFRKROZLWKRXWRSHQLQJWKHJLIWVDQG5\DQ¶V
VOXUUHGVSHHFKFRXOGKDYHUHVXOWHGIURPFKHZLQJJXP7KLV
FRQWUDU\ HYLGHQFH LV QRW VR RYHUZKHOPLQJ KRZHYHU DV WR
OHDYHXVZLWKDGHILQLWHDQGILUPFRQYLFWLRQWKDWDILQGLQJWKDW
5\DQKDGEHHQGULQNLQJZKHQKHUHSRUWHGIRUGXW\RQWKHGDWH
RIWKHDFFLGHQWZRXOGEHFOHDUO\HUURQHRXV
)XUWKHUPRUHWKHFRQFOXVLRQWKDWWKHGLVWULFWFRXUWDOOHJHGO\
GUHZ IURP WKH IDFW WKDW 5\DQ KDG EHHQ GULQNLQJ²WKDW KH
H[KLELWHGLQFRPSHWHQFHLQWLPHO\RSHQLQJWKHEULGJHRQWKH
GD\RIWKHDFFLGHQW²LVIXOO\VXSSRUWHGE\RWKHUXQFRQWHVWHG
IDFWVLQWKHUHFRUG7KLVLVPDGHFOHDULQWKHSRUWLRQRIWKH
GLVWULFWFRXUW¶VRSLQLRQWKDWLPPHGLDWHO\IROORZVWKHSDVVDJH
TXRWHGDERYH
,QVWHDG WKH EULGJHWHQGHUV GHOD\HG WKH RSHQLQJ RI WKH
EULGJHFRQWLQXHGWRDOORZYHKLFOHVRQWRWKHEULGJHDQG
IDLOHGWRUHVSRQGWRWKHYHVVHODIWHUWKHGDQJHUVLJQDOV
ZHUHJLYHQ7KH&RXUWILQGVWKDWRQ6HSWHPEHU
WKH*URVVH,OHEULGJHZDVWHQGHGE\FRPSHWHQWDQGZHOO
WUDLQHG EULGJHWHQGHUV +RZHYHU WKHVH EULGJHWHQGHUV
IDLOHGWRFRPSHWHQWO\SHUIRUPWKHLUGXWLHVRQWKHGDWHLQ
TXHVWLRQ
7KH PDWWHU RI ZKHWKHU 5\DQ KDG EHHQ GULQNLQJ LV WKXV
VXSHUIOXRXV WR WKH GLVWULFW FRXUW¶V XOWLPDWH ILQGLQJ WKDW WKH
*URVVH,OHEULGJHWHQGHUVIDLOHGWRFRPSHWHQWO\SHUIRUPWKHLU
GXWLHVWKDWGD\
:KHWKHUWKH09:KLWHSRVWHGDSURSHUORRNRXW
*URVVH ,OH DOVR FRQWHQGV WKDW WKH GLVWULFW FRXUW HUUHG LQ
GHWHUPLQLQJWKDWWKH09:KLWHSRVWHGDSURSHUORRNRXW%\
VWDWXWH
1R *URVVH,OH%ULGJH&RY
$PHULFDQ6WHDPVKLS&R

>H@YHU\YHVVHOVKDOODWDOOWLPHVPDLQWDLQDSURSHUORRN
RXWE\VLJKWDQGKHDULQJDVZHOODVE\DOODYDLODEOHPHDQV
DSSURSULDWH LQ WKH SUHYDLOLQJ FLUFXPVWDQFHV DQG
FRQGLWLRQVVRDVWRPDNHDIXOODSSUDLVDORIWKHVLWXDWLRQ
DQGRIWKHULVNRIFROOLVLRQ
86&†$ORRNRXWPXVWEHDSHUVRQRIVXLWDEOH
H[SHULHQFHDQGYLJLODQFHVWDWLRQHGDWDSODFHZKHUHWKHULVN
RI WKH GDQJHU RI FROOLVLRQ PD\ EH UHDGLO\ SHUFHLYHG 6HH
%XQJH&RUSY09)XUQHVV%ULGJH)G WK
&LU ILQGLQJWKDWWKHGHIHQGDQWYHVVHOKDGIDLOHGWRSRVW
D SURSHU ORRNRXW EHFDXVH DOWKRXJK ZHOOSRVLWLRQHG RQ WKH
ERZDQGDSSDUHQWO\FDSDEOHRIREVHUYLQJWKHLPSRUWDQWVLJQV
RI GDQJHU WKH ORRNRXWV ZHUH QRW DGHTXDWHO\ YLJLODQW LQ
H[HFXWLQJWKHLUGXWLHVSULRUWRWKHFROOLVLRQEHWZHHQWKHYHVVHO
DQGDZKDUI
,I WKH 09 :KLWH IDLOHG WR SRVW D SURSHU ORRNRXW LQ
YLRODWLRQRIWKLVVWDWXWHWKHQWKHUXOHRI7KH3HQQV\OYDQLD
86 ZRXOG JRYHUQ WKH LVVXH RI OLDELOLW\ 7KH
6XSUHPH&RXUWKHOGLQ7KH3HQQV\OYDQLDWKDWZKHUHDYHVVHO
DW WKH WLPH RI D FROOLVLRQ LV LQ YLRODWLRQ RI D VWDWXWRU\ RU
UHJXODWRU\ UXOH LQWHQGHG WR SUHYHQW VXFK D FROOLVLRQ WKH
YLRODWLRQLVSUHVXPHGWREHDWOHDVWDFRQWULEXWRU\FDXVHRIWKH
DFFLGHQW,GDW7RUHEXWWKLVSUHVXPSWLRQWKHYHVVHOLQ
YLRODWLRQRIDUXOHPXVWSURYHQRWRQO\WKDWWKHYLRODWLRQZDV
QRWLQIDFWWKHFDXVHRIWKHDFFLGHQWEXWWKDWWKHYLRODWLRQ
FRXOGQRWKDYHEHHQDFDXVHRIWKHDFFLGHQW,G
,Q WKH SUHVHQW FDVH WKH ORRNRXW RQ WKH 09 :KLWH DV LW
DSSURDFKHGWKH*URVVH,OH7ROO%ULGJHZDV5LFKDUG*DVFRWKH
VKLS¶VVHFRQGPDWH*DVFRZDVSRVLWLRQHGRQWKHERZIURP
ZKLFKKHFRPPXQLFDWHGGLUHFWO\ZLWK&DSWDLQ*DSF]\QVNLYLD
UDGLR$OLFHQVHGSLORW*DVFRKDGJRQHWKURXJKWKH*URVVH
,OH 7ROO %ULGJH QXPHURXV WLPHV GXULQJ KLV \HDUV DV D
VHDPDQ*DVFRZDVWKHUHIRUHZHOOFUHGHQWLDOHGWRVHUYHDV
WKH09:KLWH¶VORRNRXWDQGKHZDVSRVLWLRQHGSURSHUO\WR
YLHZWKHEULGJHDVWKHVKLSGUHZQHDU

-- 8 of 8 --

Continue your research in ChatGPT or Claude

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