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)
00-6635•02a0337p.06
7KH +RQRUDEOH $OJHQRQ / 0DUEOH\ 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU
WKH 6RXWKHUQ '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
3+,/,3 ' 29(5675((7
3ODLQWLII$SSHOODQW
Y
/(;,1*721)$<(77( 85%$1
&2817< *29(510(17
'HIHQGDQW$SSHOOHH
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW/H[LQJWRQ
1R².DUO6)RUHVWHU&KLHI'LVWULFW-XGJH
$UJXHG-XQH
'HFLGHGDQG)LOHG6HSWHPEHU
%HIRUH.(,7+DQG'$8*+75(<&LUFXLW-XGJHV
0$5%/(<'LVWULFW-XGJH
-- 1 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
$OWKRXJK 3ODLQWLII$SSHOODQW VW\OHG KLV PRWLRQ DV RQH IRU D
³WHPSRUDU\ LQMXQFWLRQ´ WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH GR QRW
SURYLGH IRU D ³WHPSRUDU\ LQMXQFWLRQ´ 7KHUHIRUH WKH GLVWULFW FRXUW
FRQVWUXHG 3ODLQWLII$SSHOODQW¶V PRWLRQ DV D PRWLRQ IRU D WHPSRUDU\
UHVWUDLQLQJ RUGHU SXUVXDQW WR )HG 5 &LY 3 E 2Q DSSHDO KRZHYHU
WKH SDUWLHV KDYH WUHDWHG WKH PRWLRQ DV RQH IRU D SUHOLPLQDU\ LQMXQFWLRQ
SXUVXDQW WR )HG 5 &LY 3 D
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' -DPHV 0 0RUULV 0255,6 0255,6
/H[LQJWRQ.HQWXFN\IRU$SSHOODQW7HUU\6HOODUV+(15<
:$7=*$5'1(56(//$56 *$5'1(5/H[LQJWRQ
.HQWXFN\ IRU $SSHOOHH 21 %5,() -DPHV 0 0RUULV
0255,6 0255,6/H[LQJWRQ.HQWXFN\IRU$SSHOODQW
7HUU\6HOODUV+(15<:$7=*$5'1(56(//$56
*$5'1(5/H[LQJWRQ.HQWXFN\IRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
$/*(121 / 0$5%/(< 'LVWULFW -XGJH 3ODLQWLII
$SSHOODQW3KLOLS'2YHUVWUHHWDSSHDOVWKHGLVWULFWFRXUW¶V
RUGHU GHQ\LQJ KLV PRWLRQ IRU D ³WHPSRUDU\ LQMXQFWLRQ´ WR
SURKLELWKLVHPSOR\HUDJRYHUQPHQWDOHQWLW\IURPPDQGDWLQJ
SXEOLFGLVFORVXUHRIUHDOHVWDWHKROGLQJVE\FHUWDLQGHSDUWPHQW
HPSOR\HHVDQGWKHLUIDPLO\PHPEHUV0U2YHUVWUHHWDVVLJQV
HUURUWRWKHGLVWULFWFRXUW¶VUXOLQJGHQ\LQJWKHPRWLRQIRUD
WHPSRUDU\LQMXQFWLRQEDVHGRQWKDWFRXUW¶VILQGLQJWKDW0U
2YHUVWUHHWLVXQOLNHO\WRVXFFHHGRQWKHPHULWVRIKLVFDVH
7KLV&RXUW¶VDSSHOODWHMXULVGLFWLRQLVSURSHUXQGHU86&
D
%DVHGRQWKHIROORZLQJDQDO\VLVWKH&RXUW$)),506WKH
UXOLQJRIWKHGLVWULFWFRXUW
-- 2 of 12 --
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
,%$&.*5281'
$)DFWXDO%DFNJURXQG
3ODLQWLII$SSHOODQW3KLOLS'2YHUVWUHHWLVHPSOR\HGE\
'HIHQGDQW$SSHOOHH WKH /H[LQJWRQ)D\HWWH 8UEDQ &RXQW\
*RYHUQPHQW ³/)8&*´ LQLWV'LYLVLRQRI(QJLQHHULQJ0U
2YHUVWUHHWGHVFULEHVKLVMREGXWLHVDVSULPDULO\FRQVLVWLQJRI
SORWWLQJPDSFRRUGLQDWHVDVDFRPSXWHURSHUDWRU
2Q2FWREHUWKH/)8&*LVVXHGD5HDO3URSHUW\
'LVFORVXUH 3ROLF\ ³3ROLF\´ 7KH VWDWHG SXUSRVHV RI WKH
3ROLF\ZHUHWRSURPRWHSXEOLFFRQILGHQFHLQWKHLQWHJULW\RI
WKH ORFDO JRYHUQPHQW LQ )D\HWWH &RXQW\ .HQWXFN\ DQG WR
DYRLG WKH SHUFHSWLRQ RI D FRQIOLFW EHWZHHQ JRYHUQPHQW
HPSOR\HHV¶ SULYDWH LQWHUHVWV DQG WKHLU SXEOLF GXWLHV
6SHFLILFDOO\WKH3ROLF\VWDWHGWKDWLWVSXUSRVHVZHUH LQWHU
DOLD
WRSUHYHQWDFWXDORUSHUFHLYHGFRQIOLFWVE\RIILFHUV
DQG HPSOR\HHV RI WKH >/)8&*@ WR LQVXUH WKDW
KRXVLQJLQ)D\HWWH&RXQW\LVVDIHVDQLWDU\DQGKDELWDEOH
DQG WR XQLI\ WKH H[LVWLQJ SROLFLHV DQG SURFHGXUHV
GHDOLQJ ZLWK FRQIOLFWV RI LQWHUHVW RI LQVSHFWRUV LQ WKH
'LYLVLRQ RI &RGH (QIRUFHPHQW 'LYLVLRQ RI %XLOGLQJ
,QVSHFWLRQDQGWKH)LUH3UHYHQWLRQ%XUHDX
7KH3ROLF\DSSOLHVWRHPSOR\HHVLQWKH/)8&*¶V'LYLVLRQVRI
&RGH (QIRUFHPHQW %XLOGLQJ ,QVSHFWLRQ 3ODQQLQJ
(QJLQHHULQJDQGWKH/)8&*¶V)LUH3UHYHQWLRQ%XUHDXDQG
WKHLULPPHGLDWHIDPLOLHV7KHWHUP³LPPHGLDWHIDPLOLHV´LV
GHILQHGWRLQFOXGHWKHHPSOR\HH¶V³VSRXVHXQHPDQFLSDWHG
FKLOGUHVLGLQJLQ>WKH@KRXVHKROGRUDSHUVRQFODLPHGE\>WKH
HPSOR\HHRUWKHHPSOR\HH¶VVSRXVH@DVDGHSHQGHQWIRUWD[
SXUSRVHV´ 7KH 3ROLF\ SURKLELWV HPSOR\HHV LQ FHUWDLQ
GLYLVLRQV VXFK DV &RGH (QIRUFHPHQW IURP RZQLQJ UHDO
SURSHUW\LQ)D\HWWH&RXQW\RWKHUWKDQSURSHUW\LQZKLFKWKRVH
HPSOR\HHV UHVLGH 7KH 3ROLF\ SHUPLWV RZQHUVKLS RI UHDO
SURSHUW\E\HPSOR\HHVLQRWKHUGLYLVLRQVVXFKDVWKH'LYLVLRQ
RI (QJLQHHULQJ EXW UHTXLUHV HPSOR\HHV ZKR GR RZQ UHDO
-- 3 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
³%XVLQHVV´ LV GHILQHG DV ³DQ\ FRUSRUDWLRQ SDUWQHUVKLS OLPLWHG
OLDELOLW\ FRPSDQ\ VROH SURSULHWRUVKLS ILUP HQWHUSULVH IUDQFKLVH
DVVRFLDWLRQ RUJDQL]DWLRQ VHOIHPSOR\HG LQGLYLGXDO KROGLQJ FRPSDQ\
MRLQW VWRFN FRPSDQ\ UHFHLYHUVKLS WUXVW SURIHVVLRQDO VHUYLFH FRUSRUDWLRQ
RU OLPLWHG OLDELOLW\ FRPSDQ\ RU DQ\ OHJDO HQWLW\ WKURXJK ZKLFK EXVLQHVV
LV FRQGXFWHG IRU SURILW´
SURSHUW\ WR GLVFORVH FHUWDLQ LQIRUPDWLRQ DERXW WKHLU
RZQHUVKLS
3XUVXDQWWRWKH3ROLF\HPSOR\HHVZKRDUHDOORZHGWRRZQ
UHDOSURSHUW\EXWDUHUHTXLUHGWRGLVFORVHLQIRUPDWLRQDERXW
VXFKSURSHUW\PXVWFRPSOHWHDIRUPHQWLWOHG³'LVFORVXUHRI
5HDO3URSHUW\DQG%XVLQHVV,QWHUHVWV´ ³'LVFORVXUH)RUP´
6HFWLRQ,RIWKH'LVFORVXUH)RUPUHTXLUHVWKHHPSOR\HHWROLVW
WKH DGGUHVVHV DQG RZQHUV RI UHFRUG IRU DOO UHDO HVWDWH LQ
)D\HWWH&RXQW\LQZKLFKWKHHPSOR\HHRUDPHPEHURIKLV
LPPHGLDWH IDPLO\ KDV DQ LQWHUHVW 7KH HPSOR\HH LV DOVR
UHTXLUHGWROLVWWKHQDPHVRIRWKHULQGLYLGXDOVZKRKDYHDQ
LQWHUHVWLQWKHSURSHUW\DQGWRLQGLFDWHWKHW\SHRISURSHUW\
6HFWLRQ,,RIWKHIRUPUHTXLUHVWKHHPSOR\HHWROLVWWKHQDPHV
DQGDGGUHVVHVRIDQ\EXVLQHVVRZQLQJSURSHUW\LQ)D\HWWH
&RXQW\LQZKLFKWKHHPSOR\HHRUDPHPEHURIKLVLPPHGLDWH
IDPLO\KDVDQRZQHUVKLSLQWHUHVWWKDWH[FHHGVWKHOHVVHURIWHQ
SHUFHQWRUILYHWKRXVDQGGROODUVLQYDOXH7KHHPSOR\HHPXVW
VSHFLI\WKHW\SHRIEXVLQHVVDQGSURYLGHDJHQHUDOGHVFULSWLRQ
RIWKHEXVLQHVVDQGDOVRPXVWOLVWWKHQDPHVRIFXVWRPHUV
ZKRGREXVLQHVVZLWKWKHHPSOR\HH¶VGLYLVLRQ6HFWLRQ,,,RI
WKHIRUPUHTXLUHVWKHHPSOR\HHWROLVWWKHQDPHVDGGUHVVHV
DQGRZQHUVRIUHFRUGIRUDOOSURSHUW\WKDWWKHHPSOR\HHRUD
PHPEHU RI KLV LPPHGLDWH IDPLO\ PDQDJHV RU RI ZKLFK KH
RYHUVHHVWKHPDQDJHPHQWRUPDLQWHQDQFHLQ)D\HWWH&RXQW\
7KHHPSOR\HHLVDOVRUHTXLUHGWROLVWWKHDGGUHVVHVDQGRZQHUV
RI UHFRUG IRU DQ\ EXVLQHVVHV WKDW PDQDJH RU RYHUVHH WKH
PDQDJHPHQWRUPDLQWHQDQFHRIDQ\UHDOSURSHUW\LQ)D\HWWH
&RXQW\LQZKLFKWKHHPSOR\HHRUDPHPEHURIKLVLPPHGLDWH
IDPLO\KDVDQRZQHUVKLSLQWHUHVWDVGHVFULEHGLQ6HFWLRQ,,
)LQDOO\WKH'LVFORVXUH)RUPVWDWHVWKDWLIWKHHPSOR\HHRUD
PHPEHURIKLVLPPHGLDWHIDPLO\DFTXLUHVREWDLQVLQKHULWV
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
ZRXOGEHYLRODWHGE\WKHGHQLDORIWKHLQMXQFWLRQ7KH&RXUW
ILQGVKRZHYHUWKDWWKHSXEOLFLQWHUHVWOLHVZLWKWKHGHQLDORI
0U2YHUVWUHHW¶VUHTXHVWIRUDQLQMXQFWLRQ)LUVWZKLOHWKH
SXEOLFFOHDUO\KDVLQWHUHVWLQYLQGLFDWLQJFRQVWLWXWLRQDOULJKWV
LW LV XQOLNHO\WKDW0U2YHUVWUHHWFDQGHPRQVWUDWHWKDWDQ\
FRQVWLWXWLRQDOULJKWVDUHLPSOLFDWHGRQWKHVHIDFWV6HFRQG
WKHSXEOLFLQWHUHVWOLHVLQSURPRWLQJSXEOLFFRQILGHQFHLQWKH
LQWHJULW\RIORFDOJRYHUQPHQWDQGLQDYRLGLQJWKHSHUFHSWLRQ
RI D FRQIOLFW RI LQWHUHVW EHWZHHQ JRYHUQPHQW HPSOR\HHV¶
SULYDWH LQWHUHVWV DQG WKHLU SXEOLF GXWLHV %RWK RI WKHVH
LQWHUHVWVDUHIXUWKHUHGE\WKHGHQLDORIWKHLQMXQFWLRQVRXJKW
E\3ODLQWLII$SSHOODQW
7KHUHIRUHWKH&RXUWILQGVWKDWWKHSXEOLFLQWHUHVWOLHVLQWKH
GHQLDORI3ODLQWLII$SSHOODQW¶VUHTXHVWIRUDQLQMXQFWLRQ
9&21&/86,21
)RUDOORIWKHIRUHJRLQJUHDVRQVWKLV&RXUWFRQFOXGHVWKDW
WKH GLVWULFW FRXUW GLG QRW HUU LQ LWV GHQLDO RI 3ODLQWLII
$SSHOODQW¶V 0RWLRQ IRU D 7HPSRUDU\ ,QMXQFWLRQ DQG
WKHUHIRUH$)),506WKHGLVWULFWFRXUW¶VUXOLQJ
-- 4 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
IURPWHPSRUDU\XQHPSOR\PHQWSHQGLQJDUELWUDWLRQ ,QGHHG
³>W@KH ORVV RI D MRE LV TXLQWHVVHQWLDOO\ UHSDUDEOH E\ PRQH\
GDPDJHV´0LQQHVRWD$VV¶QRI1XUVH$QHVWKHWLVWVY8QLW\
+RVS)G WK&LU
7KHUHIRUHWKH&RXUWILQGVWKDW3ODLQWLII$SSHOODQWKDVQRW
GHPRQVWUDWHG WKDW KH ZLOO VXIIHU LUUHSDUDEOH KDUP LI WKH
SUHOLPLQDU\LQMXQFWLRQGRHVQRWLVVXH
&6XEVWDQWLDO+DUPWR2WKHUV
$OWKRXJK0U2YHUVWUHHWFRQWHQGVWKDWWKHJUDQWLQJRID
SUHOLPLQDU\LQMXQFWLRQFRXOGQRWSRVVLEO\KDUPWKH/)8&*
WKH &RXUW ILQGV WR WKH FRQWUDU\ WKDW WKH LVVXDQFH RI DQ
LQMXQFWLRQ LV OLNHO\ WR FDXVH WKH /)8&* VXEVWDQWLDO KDUP
7KH3ROLF\RULJLQDWHGEHFDXVHRIDZLGHVSUHDGSXEOLFEHOLHI
RIRQJRLQJFRUUXSWLRQDWWKH/)8&*DULVLQJIURPDFRQIOLFW
RI LQWHUHVW EHWZHHQ WKH HPSOR\HHV¶ SXEOLF GXWLHV DQG WKHLU
SHUVRQDO UHDO HVWDWH KROGLQJV 7R DYRLG VXFK D SXEOLF
SHUFHSWLRQ WKH /)8&* PXVW EH DEOH WR GHPRQVWUDWH WKDW
HPSOR\HHVZKRFDQLQIOXHQFHUHDOHVWDWHGHYHORSPHQWZLWKLQ
)D\HWWH&RXQW\DUHEHLQJKHOGDFFRXQWDEOHIRUWKHLUSHUVRQDO
LQWHUHVWV 6XFK HPSOR\HHV LQFOXGH HPSOR\HHV LQ WKH
(QJLQHHULQJ'LYLVLRQVXFKDV0U2YHUVWUHHWZKRPD\JHW
DGYDQFH QRWLFH RI WKH /)8&*¶V LQWHUHVW LQ DFTXLULQJ UHDO
SURSHUW\ ,I WKH /)8&* LV XQDEOH WR KROG LWV HPSOR\HHV
DFFRXQWDEOH IRU WKH UHDO HVWDWH WKDW WKH\ RZQ WKHQ WKDW
QHJDWLYHSXEOLFRSLQLRQRIWKHORFDOJRYHUQPHQWPD\RQFH
DJDLQSHUYDGHWKHFRPPXQLW\,QVKRUWDQLQMXQFWLRQZRXOG
KDUP WKH /)8&* EHFDXVH LW ZRXOG XQGHUPLQH SXEOLF
FRQILGHQFHLQWKHORFDOJRYHUQPHQW
7KHUHIRUHWKH&RXUWILQGVWKDWWKHLVVXDQFHRIDSUHOLPLQDU\
LQMXQFWLRQLVOLNHO\WRFDXVHVXEVWDQWLDOKDUPWRRWKHUV
'3XEOLF,QWHUHVW
0U2YHUVWUHHWFRQWHQGVWKDWWKHSXEOLFLQWHUHVWOLHVZLWKWKH
JUDQWLQJ RI WKH LQMXQFWLRQ EHFDXVH WKH SXEOLF KDV D VWURQJ
LQWHUHVWLQSURWHFWLQJFRQVWLWXWLRQDOULJKWVZKLFKKHPDLQWDLQV
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
LVJLIWHGRULVRWKHUZLVHFRQYH\HGDQLQWHUHVWLQUHDOSURSHUW\
LQ)D\HWWH&RXQW\RUDQRZQHUVKLSLQWHUHVWLQDEXVLQHVVWKDW
RZQV UHDO HVWDWH LQ )D\HWWH &RXQW\ RU VWDUWV WR PDQDJH RU
PDLQWDLQSURSHUW\RUDFTXLUHVDQRZQHUVKLSLQWHUHVWLQVXFKD
EXVLQHVVWKHHPSOR\HHPXVWUHSRUWWKHFKDQJHLQVWDWXVWRWKH
/)8&*ZLWKLQWZHQW\ZRUNLQJGD\V
,QODWH2FWREHUWKH/)8&*SUHVHQWHGWKH'LVFORVXUH
)RUP WR 0U 2YHUVWUHHW ZLWK VSHFLILF LQVWUXFWLRQV WKDW WKH
IRUP ZDV WR EH ILOHG E\ 1RYHPEHU 5DWKHU WKDQ
FRPSOHWH WKH IRUP 0U 2YHUVWUHHW VXEPLWWHG D 1RWDUL]HG
'LVFORVXUH6WDWHPHQWZKLFKUHDG
7R WKH H[WHQW WKDW WKLV LQIRUPDWLRQ LV RQ UHFRUG DW WKH
)D\HWWH&RXQW\&OHUN¶V2IILFHDQGWKH39$2IILFHWKH
UHTXHVWHG LQIRUPDWLRQ LV SXEOLF UHFRUG DQG FDQ EH
REWDLQHGWKURXJKWKRVHRIILFHV$Q\LQIRUPDWLRQDVLW
SHUWDLQVWRP\LPPHGLDWHIDPLO\LVDQLQYDVLRQRIWKHLU
SULYDF\ DQG UHTXLUHV PH WR YHULI\ ZKDW WKH\ RZQ
VRPHWKLQJ , FDQQRW GR 7R WKH H[WHQW WKDW WKLV
LQIRUPDWLRQLVDOVRDYDLODEOHWKURXJKWKHRIILFHVRIWKH
)D\HWWH &RXQW\ &OHUN DQG WKH 39$ 2IILFH VDLG
LQIRUPDWLRQLVSXEOLFUHFRUG
2Q 1RYHPEHU WKH /)8&* LVVXHG D ZULWWHQ
UHSULPDQGWR0U2YHUVWUHHWIRULQVXERUGLQDWLRQDQGDGYLVHG
KLPWKDWWKHIDLOXUHWRVXEPLWDSURSHUO\FRPSOHWHG'LVFORVXUH
)RUPE\SPRQ1RYHPEHUZRXOGUHVXOWLQD
VXVSHQVLRQ ZLWKRXW SD\ )ROORZLQJ WKH LVVXDQFH RI WKH
UHSULPDQG0U2YHUVWUHHWDQGKLVFRXQVHOUHTXHVWHGWKDWWKH
/)8&*JUDQWDQH[WHQVLRQRIWKHGHDGOLQHXQWLOLWSURYLGHG
0U2YHUVWUHHWZLWKWKHOHJDOEDVLVIRULWVHQWLWOHPHQWWRWKH
LQIRUPDWLRQUHTXHVWHGLQWKH'LVFORVXUH)RUP7KH/)8&*
GLGQRWUHVSRQGWRWKLVUHTXHVWDQG0U2YHUVWUHHWIDLOHGWR
VXEPLWWKH'LVFORVXUH)RUPRQRUEHIRUH1RYHPEHU
%DVHG XSRQ KLV IDLOXUH WR VXEPLW WKH UHTXLUHG IRUP WKH
/)8&* VXVSHQGHG 0U 2YHUVWUHHW ZLWKRXW SD\ IRU VHYHQ
GD\VDQGDGYLVHGKLPWKDWKLVIDLOXUHWRVXEPLWWKHIRUPE\
-- 5 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
'HFHPEHU ZRXOG UHVXOW LQ WKH ILOLQJ RI
DGPLQLVWUDWLYHFKDUJHVVHHNLQJKLVGLVPLVVDO
%3URFHGXUDO+LVWRU\
2Q1RYHPEHU0U2YHUVWUHHWILOHGD&RPSODLQW
ZLWK WKH GLVWULFW FRXUW LQ WKH (DVWHUQ 'LVWULFW RI .HQWXFN\
DOOHJLQJWKHIROORZLQJFODLPV DYLRODWLRQRIWKH7KLUG
)RXUWK )LIWK 1LQWK DQG )RXUWHHQWK $PHQGPHQWV WR WKH
8QLWHG6WDWHV&RQVWLWXWLRQEDVHGRQDQLQIULQJHPHQWRI0U
2YHUVWUHHW¶V ULJKW WR SULYDF\ D YLRODWLRQ RI WKH )RXUWK
$PHQGPHQWEDVHGRQDQXQUHDVRQDEOHVHDUFK DYLRODWLRQ
RIWKH)RXUWHHQWK$PHQGPHQWEDVHGRQWKHIDFWWKDWWKH5HDO
(VWDWH 'LVFORVXUH SROLF\ LV LPSHUPLVVLEO\ YDJXH D
YLRODWLRQ RI WKH )RXUWHHQWK $PHQGPHQW EDVHG RQ DQ
LQIULQJHPHQW RI 0U 2YHUVWUHHW¶V ULJKW WR VXEVWDQWLYH GXH
SURFHVVDQG DYLRODWLRQRIWKH)RXUWHHQWK$PHQGPHQW
EDVHGRQDQLQIULQJHPHQWRI0U2YHUVWUHHW¶VULJKWWRHTXDO
SURWHFWLRQ+HILOHGKLV&RPSODLQWRQEHKDOIRIKLPVHOIDQG
DOOIRUPHUFXUUHQWDQGIXWXUHRIILFHUVDQGHPSOR\HHVRIWKH
/)8&*'LYLVLRQVRI&RGH(QIRUFHPHQW%XLOGLQJ,QVSHFWLRQ
3ODQQLQJ(QJLQHHULQJDQGWKH)LUH3UHYHQWLRQ%XUHDXDQG
WKHLULPPHGLDWHIDPLOLHV2QWKDWVDPHGD\0U2YHUVWUHHW
DOVRILOHG D0RWLRQIRUD7HPSRUDU\,QMXQFWLRQZKLFKWKH
GLVWULFWFRXUWWUHDWHGDVD0RWLRQIRUD7HPSRUDU\5HVWUDLQLQJ
2UGHU
7KHGLVWULFWFRXUWKHOGDKHDULQJRQ0U2YHUVWUHHW¶VPRWLRQ
RQ1RYHPEHU2Q'HFHPEHUWKHGLVWULFW
FRXUWHQWHUHGDQRUGHUGHQ\LQJ0U2YHUVWUHHW¶V0RWLRQIRUD
7HPSRUDU\ ,QMXQFWLRQ 0U 2YHUVWUHHW ILOHG D 1RWLFH RI
$SSHDOIURPWKDWRUGHURQ'HFHPEHU$WWKHVDPH
WLPH KH DOVR ILOHG D 0RWLRQ IRU 7HPSRUDU\ ,QMXQFWLRQ
3HQGLQJ $SSHDO ERWK ZLWK WKH GLVWULFW FRXUW DQG ZLWK WKLV
&RXUW 2Q 'HFHPEHU ERWK FRXUWV UXOHG RQ WKH
PRWLRQ7KHGLVWULFWFRXUWGHQLHG0U2YHUVWUHHW¶V0RWLRQIRU
D 7HPSRUDU\ ,QMXQFWLRQ 3HQGLQJ $SSHDO 7KLV &RXUW SHU
&KLHI -XGJH 0DUWLQ KRZHYHU JUDQWHG 0U 2YHUVWUHHW¶V
0RWLRQ LQ SDUW DQG HQMRLQHG 'HIHQGDQW$SSHOOHH IURP
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
UHFRJQL]LQJWKDWWKHORVVRI)LUVW$PHQGPHQWULJKWVIRUHYHQ
D PLQLPDO SHULRG RI WLPH FRQVWLWXWHV LUUHSDUDEOH KDUP
FLWDWLRQVRPLWWHG &RYLQRY3DWULVVL)G G
&LU KROGLQJWKDWSODLQWLIIVPD\HVWDEOLVKLUUHSDUDEOH
KDUP EDVHG RQ DQ DOOHJHG YLRODWLRQ RI WKHLU )RXUWK
$PHQGPHQWULJKWV 0F'RQHOOY+XQWHU)G
WK&LU ILQGLQJWKDWDYLRODWLRQRISULYDF\FRQVWLWXWHV
DQLUUHSDUDEOHKDUP
3ODLQWLII$SSHOODQW FRQWHQGV WKDW KH KDV GHPRQVWUDWHG
LUUHSDUDEOH KDUP EHFDXVH 'HIHQGDQW$SSHOOHH¶V GLVFORVXUH
UHTXLUHPHQWYLRODWHVKLV)RXUWKDQG)RXUWHHQWK$PHQGPHQW
ULJKWV +H DOVR FODLPV WKDW DEVHQW WKH LVVXDQFH RI DQ
LQMXQFWLRQKHZLOOVXIIHULUUHSDUDEOHKDUPEHFDXVHKHZLOOEH
UHTXLUHG WR FKRRVH EHWZHHQ GLVFORVLQJ FHUWDLQ SHUVRQDO
LQIRUPDWLRQDQGEHLQJWHUPLQDWHGIURPKLVHPSOR\PHQW
7KH&RXUWKDVDOUHDG\GLVFXVVHGWKHIDFWWKDWLWLVXQOLNHO\
WKDW0U2YHUVWUHHWZLOOEHDEOHWRGHPRQVWUDWHWKDWKHKDVD
FRJQL]DEOHFRQVWLWXWLRQDOFODLP7KXVKLVDUJXPHQWWKDWKH
LVHQWLWOHGWRDSUHVXPSWLRQRILUUHSDUDEOHKDUPEDVHGRQWKH
DOOHJHGFRQVWLWXWLRQDOYLRODWLRQLVZLWKRXWPHULW7KH&RXUW
PXVWWKHUHIRUHH[DPLQHZKHWKHU0U2YHUVWUHHWKDVPHWKLV
EXUGHQRIGHPRQVWUDWLQJLUUHSDUDEOHKDUPEDVHGRQWKHIDFW
WKDW KH IDFHV WKH ORVV RI KLV HPSOR\PHQW IRU KLV IDLOXUH WR
FRPSOHWHDQGVXEPLWWKH'LVFORVXUH)RUP
7KH &RXUW FRQFOXGHV WKDW 0U 2YHUVWUHHW ZLOO QRW VXIIHU
LUUHSDUDEOHKDUPE\YLUWXHRIWKHIDFWWKDWKHPD\ORVHKLVMRE
ZKLOHWKLVOLWLJDWLRQLVSHQGLQJ7KHIDFWWKDWDQLQGLYLGXDO
PD\ORVHKLVLQFRPHIRUVRPHH[WHQGHGSHULRGRIWLPHGRHV
QRWUHVXOWLQLUUHSDUDEOHKDUPDVLQFRPHZURQJO\ZLWKKHOG
PD\EHUHFRYHUHGWKURXJKPRQHWDU\GDPDJHVLQWKHIRUPRI
EDFN SD\ 6DPSVRQ Y 0XUUD\ 86
ILQGLQJWKDW³WKHWHPSRUDU\ORVVRILQFRPHXOWLPDWHO\WREH
UHFRYHUHGGRHVQRWXVXDOO\FRQVWLWXWHLUUHSDUDEOHLQMXU\´ VHH
$OXPLQXP:RUNHUV,QW¶O8QLRQ$)/&,2/RFDO8QLRQ1R
Y&RQVRO$OXPLQXP&RUS)G WK&LU
ILQGLQJWKDWHPSOR\HHVGLGQRWVXIIHULUUHSDUDEOHKDUP
-- 6 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
$SSHOODQW¶VYDJXHQHVVDUJXPHQWVDUHQRWSURSHUO\EHIRUH
WKLV&RXUW³,WLVZHOOVHWWOHGWKDWWKLVFRXUWZLOOQRWFRQVLGHU
DUJXPHQWVUDLVHGIRUWKHILUVWWLPHRQDSSHDOXQOHVVRXUIDLOXUH
WR FRQVLGHU WKH LVVXH ZLOO UHVXOW LQ D SODLQ PLVFDUULDJH RI
MXVWLFH´%DLOH\Y)OR\G&RXQW\%GRI(GXF)G
WK&LU FLWLQJ5RXVKY.)&1DW¶O0JPW&R
)G WK&LU VHH:KLWHY$QFKRU0RWRU
)UHLJKW,QF)G WK&LU ³7KLVFRXUW
ZLOOQRWGHFLGHLVVXHVRUFODLPVQRWOLWLJDWHGEHIRUHWKHGLVWULFW
FRXUW´ $OWKRXJK0U2YHUVWUHHWUHIHUUHGWRWKHYDJXHQHVV
RIWKH3ROLF\LQKLV&RPSODLQWKHIDLOHGWRDUJXHWKDWLVVXH
EHIRUH WKH GLVWULFW FRXUW HLWKHU LQ KLV PRWLRQV RU DW RUDO
DUJXPHQW)XUWKHUPRUHKHIDLOHGWRUDLVHWKHLVVXHEHIRUHWKLV
&RXUWXQWLOKHILOHGKLVUHSO\EULHI$QDUJXPHQWUDLVHGIRU
WKHILUVWWLPHLQDUHSO\EULHIZLOOQRWEHFRQVLGHUHGE\WKLV
&RXUW:ULJKWY+ROEURRN)G WK&LU
VSHFLI\LQJ WKDW WKH DSSOLFDWLRQ RI WKLV UXOH LV
³SDUWLFXODUO\DSSURSULDWHZKHQWKHLVVXHUDLVHGIRUWKHILUVW
WLPHLQUHSO\LVEDVHGODUJHO\RQWKHIDFWVDQGFLUFXPVWDQFHV
RIWKHFDVH´ 3DUWLFXODUO\KHUHZKHUHWKHIDFWVUHOLHGXSRQ
ZHUHSUHVHQWHGQHLWKHUWRWKHGLVWULFWFRXUWQRUWRWKLV&RXUW
XQWLO3ODLQWLII$SSHOODQWILOHGKLVUHSO\LWZRXOGEHLPSURSHU
IRUWKH&RXUWWRILQGWKDWWKHGLVWULFWFRXUWHUUHGLQLWVIDLOXUH
WRFRQVLGHUWKLVQHZO\GHYHORSHGYDJXHQHVVDUJXPHQW
)RUDOORIWKHIRUHJRLQJUHDVRQVWKH&RXUWILQGVWKDWWKH
GLVWULFW FRXUW GLG QRW HUU LQ LWV FRQFOXVLRQ WKDW 3ODLQWLII
$SSHOODQWLVXQOLNHO\WRVXFFHHGRQWKHPHULWVRIKLVFODLP
%,UUHSDUDEOH+DUP
$ SODLQWLII¶V KDUP IURP WKH GHQLDO RI D SUHOLPLQDU\
LQMXQFWLRQ LV LUUHSDUDEOH LI LW LV QRW IXOO\ FRPSHQVDEOH E\
PRQHWDU\GDPDJHV%DVLFRPSXWHU&RUSY6FRWW)G
WK &LU &RXUWV KDYH DOVR KHOG WKDW D
SODLQWLIIFDQGHPRQVWUDWHWKDWDGHQLDORIDQLQMXQFWLRQZLOO
FDXVHLUUHSDUDEOHKDUPLIWKHFODLPLVEDVHGXSRQDYLRODWLRQ
RIWKHSODLQWLII¶VFRQVWLWXWLRQDOULJKWV6HHHJ&RQQHFWLRQ
'LVWULE &R Y 5HQR )G WK &LU
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
LQLWLDWLQJ DGPLQLVWUDWLYH FKDUJHV IRU 0U 2YHUVWUHHW¶V
GLVPLVVDO LQ UHVSRQVH WR KLV UHIXVDO WR FRPSOHWH VLJQ DQG
VXEPLWWKH'LVFORVXUH)RUPSHQGLQJWKLVDSSHDO
,,35(/,0,1$5<,668(6
$-XULVGLFWLRQ
0U2YHUVWUHHWILOHGDPRWLRQIRUD³WHPSRUDU\LQMXQFWLRQ´
ZLWKWKHGLVWULFWFRXUW%HFDXVHWKH)HGHUDO5XOHVRI&LYLO
3URFHGXUH GR QRW UHFRJQL]H WKH H[LVWHQFH RI D ³WHPSRUDU\
LQMXQFWLRQ´WKHGLVWULFWFRXUWWUHDWHGWKHPRWLRQDVDPRWLRQ
IRUDWHPSRUDU\UHVWUDLQLQJRUGHU
$ GLVWULFW FRXUW¶V GHQLDO RI D PRWLRQ IRU D WHPSRUDU\
UHVWUDLQLQJ RUGHU JHQHUDOO\ LV QRW DSSHDODEOH :LOVRQ Y
:LONLQVRQ)HG$SS[:/DW
WK&LU-DQ FLWLQJ2IILFHRI3HUV0JPWY$P
)HG¶Q RI *RY¶W (PSOR\HHV $)/&,2 86
DQG%GRI*RYHUQRUVRI)HG5HVHUYH6\VY
'/*)LQ&RUS)G WK&LU 6XFKD
UXOLQJLVDSSHDODEOHKRZHYHULILWLVWDQWDPRXQWWRDUXOLQJRQ
DSUHOLPLQDU\LQMXQFWLRQ,GDW FLWLQJ0DQERXUQH,QF
Y&RQUDG)GQ WK&LU
7KLV &RXUW ILQGV WKDW 3ODLQWLII$SSHOODQW¶V 0RWLRQ IRU D
7HPSRUDU\ ,QMXQFWLRQ LV WDQWDPRXQW WR D PRWLRQ IRU D
SUHOLPLQDU\LQMXQFWLRQ$OWKRXJKWKHGLVWULFWFRXUWWUHDWHGWKH
PRWLRQDVRQHIRUDWHPSRUDU\UHVWUDLQLQJRUGHUERWKSDUWLHV
KDYH WUHDWHG WKH PRWLRQ DQG WKH GLVWULFW FRXUW¶V UXOLQJ
WKHUHRQDVDPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQ,QGHHGLQ
WKHLUUHVSHFWLYHSOHDGLQJVWKHSDUWLHVVHWIRUWKDQGEDVHWKHLU
DUJXPHQWVXSRQWKHHOHPHQWVWKDWPXVWEHVKRZQIRUDFRXUW
WRJUDQWDSUHOLPLQDU\LQMXQFWLRQ)XUWKHUPRUHWKHGLVWULFW
FRXUW WUHDWHG 3ODLQWLII$SSHOODQW¶V 0RWLRQ IRU 7HPSRUDU\
,QMXQFWLRQ 3HQGLQJ $SSHDO VW\OHG LQ HVVHQWLDOO\ WKH VDPH
PDQQHUDVWKHRULJLQDOPRWLRQDVDPRWLRQIRUDSUHOLPLQDU\
LQMXQFWLRQSHQGLQJDSSHDO
-- 7 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
3ODLQWLII$SSHOODQW¶V PRWLRQ ZDV JUDQWHG LQ SDUW UDWKHU WKDQ LQ LWV
HQWLUHW\ EHFDXVH WKH UXOLQJ DSSOLHG RQO\ WR 3ODLQWLII$SSHOODQW DQG QRW WR
WKH RWKHU HPSOR\HHV RQ ZKRVH EHKDOI 0U 2YHUVWUHHW VRXJKW WKH WHPSRUDU\
LQMXQFWLYH UHOLHI
7KHUHIRUHWKH&RXUWFRQVWUXHV3ODLQWLII$SSHOODQW¶V0RWLRQ
IRU D 7HPSRUDU\ ,QMXQFWLRQ DQG WKH GLVWULFW FRXUW¶V UXOLQJ
WKHUHRQ DV D PRWLRQ IRU D SUHOLPLQDU\ LQMXQFWLRQ SURSHUO\
SRVWXUHGIRUUHYLHZE\WKLV&RXUW
%0RWLRQIRUD7HPSRUDU\,QMXQFWLRQ3HQGLQJ$SSHDO
2Q'HFHPEHU3ODLQWLII$SSHOODQWILOHGD0RWLRQ
IRUD7HPSRUDU\,QMXQFWLRQ3HQGLQJ$SSHDOZLWKWKLV&RXUW
2Q'HFHPEHUWKLV&RXUWSHU&KLHI-XGJH0DUWLQ
JUDQWHGWKDWPRWLRQLQSDUWDQGHQMRLQHG'HIHQGDQW$SSHOOHH
IURP LQLWLDWLQJ DGPLQLVWUDWLYH FKDUJHV IRU 0U 2YHUVWUHHW¶V
GLVPLVVDO LQ UHVSRQVH WR KLV UHIXVDO WR FRPSOHWH VLJQ DQG
VXEPLW WKH 'LVFORVXUH )RUP SHQGLQJ WKLV DSSHDO 0U
2YHUVWUHHWQRZFRQWHQGVWKDWWKLVSDQHOVKRXOGVLPSO\H[WHQG
WKHOLIHRIWKH'HFHPEHURUGHUEHFDXVH&KLHI-XGJH
0DUWLQKDVDOUHDG\UXOHGRQWKHPHULWVRI3ODLQWLII$SSHOODQW¶V
FODLPV
7KLV&RXUWKDVWKHSRZHUWRJUDQWDQLQMXQFWLRQSHQGLQJ
DSSHDO WR SUHYHQW LUUHSDUDEOH KDUP WR WKH SDUW\ UHTXHVWLQJ
VXFK UHOLHI GXULQJ WKH SHQGHQF\ RI WKH DSSHDO (DVWHUQ
*UH\KRXQG/LQHVY)XVFR)G WK&LU
FRQFOXGLQJWKDWWKHDXWKRULW\WRJUDQWDQLQMXQFWLRQSHQGLQJ
DSSHDOLVD³QHFHVVDU\LQFLGHQW´WRWKH&RXUW¶VSRZHUWRLVVXH
ZULWVWRSURWHFWDSSHOODWHMXULVGLFWLRQXQGHU86&
FLWDWLRQRPLWWHG ,QJUDQWLQJVXFKDQLQMXQFWLRQWKH&RXUW
LVWRHQJDJHLQWKHVDPHDQDO\VLVWKDWLWGRHVLQUHYLHZLQJWKH
JUDQW RU GHQLDO RI D PRWLRQ IRU D SUHOLPLQDU\ LQMXQFWLRQ
:DONHU Y /RFNKDUW )G WK &LU
UHDVRQLQJWKDWWKHVDPHDQDO\VLVLVDSSURSULDWHEHFDXVHLQ
VHHNLQJERWKPRWLRQVWKHPRYDQWLVUHTXHVWLQJWKDWWKHFRXUW
LVVXHDQRUGHUWRPDLQWDLQWKHVWDWXVTXRXQWLOWKHFRXUWUXOHV
RQWKHPHULWVRIWKHFDVH
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
'LVFORVXUH )RUP LV OLNHO\ WR EH IRXQG UHDVRQDEOH DQG
WKHUHIRUH LQ FRPSOLDQFH ZLWK WKH VWULFWXUHV RI WKH )RXUWK
$PHQGPHQW $V GLVFXVVHG DERYH ZLWK UHIHUHQFH WR 0U
2YHUVWUHHW¶VULJKWWRSULYDF\FODLPWKHGLVWULFWFRXUWLVOLNHO\
WR FRQFOXGH WKDW WKH 3ROLF\ DQG 'LVFORVXUH )RUP DUH
UHDVRQDEOHLQOLJKWRIWKH/)8&*¶VLQWHUHVWVLQSUHYHQWLQJ
FRUUXSWLRQDQGWKHDSSHDUDQFHRILPSURSULHW\ZKHQZHLJKHG
DJDLQVW 0U 2YHUVWUHHW¶V OLPLWHG H[SHFWDWLRQ RI SULYDF\ LQ
LQIRUPDWLRQUHJDUGLQJWKHUHDOSURSHUW\WKDWKHDQGPHPEHUV
RIKLVLPPHGLDWHIDPLO\RZQ6LJQLILFDQWO\WKH/)8&*KDV
OLPLWHGWKHDSSOLFDWLRQRIWKH3ROLF\WRHPSOR\HHVLQWKRVH
GHSDUWPHQWVWKDWPD\KDYHDFFHVVWRSULYLOHJHGLQIRUPDWLRQ
DQGPD\XVHWKHLUSURIHVVLRQDOUROHVWRWKHLURZQSHUVRQDO
DGYDQWDJH
7KHUHIRUHWKHGLVWULFWFRXUWGLGQRWHUULQLWVFRQFOXVLRQWKDW
0U2YHUVWUHHWLVXQOLNHO\WRSUHYDLORQWKHPHULWVRIKLVFODLP
WKDWWKH/)8&*3ROLF\DQG'LVFORVXUH)RUPFRQVWLWXWHDQ
XQUHDVRQDEOHVHDUFKLQYLRODWLRQRIWKH)RXUWK$PHQGPHQW
9DJXHQHVV
7KRXJKWKHLVVXHZDVQRWUDLVHGE\3ODLQWLII$SSHOODQWLQ
KLVILQDOEULHIVXEPLWWHGWRWKLV&RXUW'HIHQGDQW$SSHOOHHLQ
LWVEULHIDUJXHGWKDWWKH5HDO3URSHUW\'LVFORVXUH3ROLF\LV
QRWLPSHUPLVVLEO\YDJXH'HIHQGDQW$SSHOOHHSUHVXPDEO\
DGGUHVVHGWKLVLVVXHEHFDXVHLWZDVPHQWLRQHGLQ3ODLQWLII
$SSHOODQW¶V&RPSODLQWILOHGZLWKWKHGLVWULFWFRXUW
,Q KLV 5HSO\ EULHI 3ODLQWLII$SSHOODQW DUJXHG WKDW WKH
GLVWULFWFRXUWHUUHGLQILQGLQJWKDWKHZDVXQOLNHO\WRVXFFHHG
RQWKHPHULWVRIKLVFODLPEHFDXVHWKH3ROLF\LVLPSHUPLVVLEO\
YDJXH 0U 2YHUVWUHHW KDG QRW SUHVHQWHG DQ DUJXPHQW
UHJDUGLQJWKHDOOHJHGLPSHUPLVVLEOHYDJXHQHVVRIWKH3ROLF\
LQKLV0RWLRQIRUD7HPSRUDU\,QMXQFWLRQLQKLV0RWLRQIRU
D 7HPSRUDU\ ,QMXQFWLRQ 3HQGLQJ $SSHDO GXULQJ RUDO
DUJXPHQW EHIRUH WKH GLVWULFW FRXUW RQ KLV 0RWLRQ IRU D
7HPSRUDU\,QMXQFWLRQRULQKLVILQDOEULHIWRWKLV&RXUW
-- 8 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
7KH&RXUWILQGVWKDWWKHGLVWULFWFRXUWFRUUHFWO\FRQFOXGHG
WKDW3ODLQWLII$SSHOODQWLVXQOLNHO\WRVXFFHHGRQWKHPHULWVRI
WKLV FODLP $OWKRXJK VHDUFKHV DQG VHL]XUHV FRQGXFWHG E\
JRYHUQPHQW HPSOR\HUV DUH VXEMHFW WR WKH VWULFWXUHV RI WKH
)RXUWK$PHQGPHQWWKHGLVWULFWFRXUWLVOLNHO\WRILQGDIWHUD
WULDORQWKHPHULWVWKDWWKH)RXUWK$PHQGPHQWGRHVQRWDSSO\
XQGHUWKHVHSDUWLFXODUFLUFXPVWDQFHVEHFDXVH0U2YHUVWUHHW
KDVQRUHDVRQDEOHH[SHFWDWLRQRISULYDF\LQWKHLQIRUPDWLRQ
VRXJKWE\WKH/)8&*,Q%DUU\Y&LW\RI1HZ<RUN
)G G&LU WKH6HFRQG&LUFXLWFRQVLGHUHGWKH
FRQVWLWXWLRQDOLW\RIDILQDQFLDOGLVFORVXUHVWDWXWHDGRSWHGE\
WKH &LW\ RI 1HZ <RUN WKDW DSSOLHG WR PRVW HOHFWHG DQG
DSSRLQWHGRIILFLDOVFDQGLGDWHVIRU&LW\RIILFHDQGDOOFLYLO
VHUYLFHHPSOR\HHVZKRHDUQHGDQDQQXDOVDODU\RIRU
DERYH ,G DW 3XUVXDQW WR WKH VWDWXWH FRYHUHG
HPSOR\HHV DQG WKHLU VSRXVHV ZHUH UHTXLUHG WR SURYLGH
H[WHQVLYH LQIRUPDWLRQ DERXW WKHLU SHUVRQDO ILQDQFHV
LQFOXGLQJ LQWHU DOLD ³WKH LGHQWLW\ RI SURIHVVLRQDO
RUJDQL]DWLRQVIURPZKLFKWKHHPSOR\HHRUDVSRXVHGHULYHV
RU PRUH LQ LQFRPH GXULQJ WKH SUHFHGLQJ \HDU WKH
VRXUFHRIFDSLWDOJDLQVRIRUPRUHRWKHUWKDQIURPWKH
VDOHRIDUHVLGHQFHWKHVRXUFHRIJLIWVRUKRQRUDULDRIRU
PRUHLQGHEWHGQHVVLQH[FHVVRIWKDWLVRXWVWDQGLQJIRU
GD\VRUPRUHDQGWKHQDWXUHRILQYHVWPHQWVZRUWK
RUPRUH´,GDW'LVFXVVLQJWKHSODLQWLIIHPSOR\HHV¶
FODLPV WKDW WKH ODZ YLRODWHG WKH )RXUWK $PHQGPHQW WKH
6HFRQG&LUFXLWVWDWHGWKDWLWZDV³GRXEWIXOZKHWKHUWKH
)RXUWK$PHQGPHQWDSSOLHVLQWKLVFRQWH[W>3@ODLQWLIIV
SODLQO\KDYHQRUHDVRQDEOHH[SHFWDWLRQWKDWWKHLQIRUPDWLRQ
VRXJKWFDQEHZLWKKHOGIURPWKHLUHPSOR\HUV´,GDW
FLWLQJ:KDOHQ86DWQ /LNHZLVHWKLV&RXUW
ILQGV WKDW WKH GLVWULFW FRXUW LV OLNHO\ WR FRQFOXGH WKDW 0U
2YHUVWUHHW KDV QR OHJLWLPDWH H[SHFWDWLRQ RI SULYDF\ LQ WKH
LQIRUPDWLRQVRXJKWE\KLVHPSOR\HUPXFKRIZKLFKLVDOUHDG\
DPDWWHURISXEOLFUHFRUG
(YHQLI0U2YHUVWUHHWGRHVKDYHDUHDVRQDEOHH[SHFWDWLRQ
RISULYDF\LQWKHLQIRUPDWLRQSHUWDLQLQJWRKLVUHDOSURSHUW\
KROGLQJVDQ\VHDUFKFRQGXFWHGE\YLUWXHRIWKH3ROLF\DQG
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
$OWKRXJK XQGHU :DONHU 0U 2YHUVWUHHW LV FRUUHFW WKDW
&KLHI-XGJH0DUWLQ¶VRUGHUZDVDWOHDVWLPSOLFLWO\EDVHGRQ
WKH FRQFOXVLRQ WKDW KH KDG PHW WKH UHTXLUHPHQWV IRU WKH
LVVXDQFH RI D SUHOLPLQDU\ LQMXQFWLRQ WKLV SDQHO LV
QRQHWKHOHVVQRWERXQGWRH[WHQGWKHOLIHRIWKDWRUGHU7RWKH
FRQWUDU\ &KLHI -XGJH 0DUWLQ¶V RUGHU E\ LWV RZQ WHUPV
H[SLUHVXSRQWKHGLVSRVLWLRQRIWKLVDSSHDOIURPWKHGLVWULFW
FRXUW¶V 'HFHPEHU GHQLDO RI 3ODLQWLII$SSHOODQW¶V
PRWLRQIRUDWHPSRUDU\LQMXQFWLRQ6HH)HG7UDGH&RPP¶Q
Y)RRG7RZQ6WRUHV,QF)G WK&LU
³7KHLQMXQFWLRQSHQGLQJWKHDSSHDOH[SLUHVE\LWVRZQWHUPV
XSRQGLVSRVLWLRQRIWKHDSSHDO´ )XUWKHUPRUH&KLHI-XGJH
0DUWLQ¶VUXOLQJKDVQRUHVMXGLFDWDHIIHFWEHFDXVHLWGRHVQRW
FRQVWLWXWHDILQDODGMXGLFDWLRQRIWKHPHULWVRIDQLVVXH,G
7KHSXUSRVHRIWKDWRUGHUZDVWRPDLQWDLQWKHVWDWXVTXRRQO\
XQWLOWKLVSDQHOUXOHGXSRQ3ODLQWLII$SSHOODQW¶VDSSHDOIURP
WKHGLVWULFWFRXUW¶VRUGHU
,,,67$1'$5'2)5(9,(:
7KHJUDQWRUGHQLDORIDSUHOLPLQDU\LQMXQFWLRQLVUHYLHZHG
IRUDQDEXVHRIGLVFUHWLRQ0LFKLJDQ%HOO7HO&RY(QJOHU
)G WK &LU FLWDWLRQV RPLWWHG
$FFRUGLQJO\WKHGLVWULFWFRXUW¶VILQGLQJVRIIDFWZLOOVWDQG
XQOHVVIRXQGWREHFOHDUO\HUURQHRXVEXWLWVOHJDOFRQFOXVLRQV
DUHUHYLHZHGGHQRYR,G FLWDWLRQVRPLWWHG
,QGHWHUPLQLQJZKHWKHUWRLVVXHDSUHOLPLQDU\LQMXQFWLRQ
WKH&RXUWPXVWH[DPLQHIRXUIDFWRUV ZKHWKHUWKHPRYDQW
KDV VKRZQ D VWURQJ OLNHOLKRRG RI VXFFHVV RQ WKH PHULWV
ZKHWKHU WKH PRYDQW ZLOO VXIIHU LUUHSDUDEOH KDUP LI WKH
LQMXQFWLRQ LV QRW LVVXHG ZKHWKHU WKH LVVXDQFH RI WKH
LQMXQFWLRQ ZRXOG FDXVH VXEVWDQWLDO KDUP WR RWKHUV DQG
ZKHWKHUWKHSXEOLFLQWHUHVWZRXOGEHVHUYHGE\LVVXLQJWKH
LQMXQFWLRQ/HDU\Y'DHVFKQHU)G WK&LU
FLWLQJ 0F3KHUVRQ Y 0LFKLJDQ +LJK 6FK $WKOHWLF
$VV¶Q)G WK&LU HQEDQF 7KHVH
IDFWRUV DUH QRW SUHUHTXLVLWHV EXW DUH IDFWRUV WKDW DUH WR EH
EDODQFHG DJDLQVW HDFK RWKHU 8QLWHG )RRG &RPPHUFLDO
-- 9 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
:RUNHUV8QLRQ/RFDOY6RXWKZHVW2KLR5HJ¶O7UDQVLW
$XWK)G WK&LU FLWDWLRQRPLWWHG $
SUHOLPLQDU\ LQMXQFWLRQ LV DQ H[WUDRUGLQDU\ UHPHG\ ZKLFK
VKRXOGEHJUDQWHGRQO\LIWKHPRYDQWFDUULHVKLVRUKHUEXUGHQ
RISURYLQJWKDWWKHFLUFXPVWDQFHVFOHDUO\GHPDQGLW/HDU\
)GDW FLWDWLRQVRPLWWHG
,9',6&866,21
$/LNHOLKRRGRI6XFFHVVRQWKH0HULWV
,QGHQ\LQJ3ODLQWLII$SSHOODQW¶V0RWLRQIRUD7HPSRUDU\
,QMXQFWLRQWKHGLVWULFWFRXUWFRQFOXGHGWKDW0U2YHUVWUHHWLV
XQOLNHO\WRVXFFHHGRQWKHPHULWVRIKLVFDVH7KHFRXUWEDVHG
LWV FRQFOXVLRQ RQ WKH IDFW WKDW LW FRXOG GLVFHUQ QR
FRQVWLWXWLRQDO YLRODWLRQ IURP 'HIHQGDQW$SSHOOHH¶V 5HDO
3URSHUW\3ROLF\DQG'LVFORVXUH)RUP0U2YHUVWUHHWQRZ
DUJXHVWKDWWKHGLVWULFWFRXUWHUUHGDVDPDWWHURIODZLQLWV
ILQGLQJWKDWWKH3ROLF\DQGWKH'LVFORVXUH)RUPDUHQRWOLNHO\
WR EH IRXQG WR YLRODWH WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ
$OWKRXJK0U2YHUVWUHHW¶V&RPSODLQWDVVHUWHGWKDWWKH3ROLF\
YLRODWHVDVPDQ\DVILYHSURYLVLRQVRIWKH&RQVWLWXWLRQRQ
DSSHDOKHDUJXHVRQO\WKDWWKH3ROLF\FRQVWLWXWHVDQLQYDVLRQ
RIKLVSULYDF\DQGDQXQUHDVRQDEOHVHDUFKXQGHUWKH)RXUWK
$PHQGPHQWWRWKH&RQVWLWXWLRQ
5LJKWWR3ULYDF\
7KH6XSUHPH&RXUWKDVUHFRJQL]HGWKDWVRPHRILWVFDVHV
PD\LQGLFDWHWKHH[LVWHQFHRIDQLQGLYLGXDOSULYDF\LQWHUHVWLQ
DYRLGLQJGLVFORVXUHRISHUVRQDOPDWWHUV:KDOHQY5RH
86 7KH:KDOHQ&RXUWREVHUYHGWKDW³WKHFDVHV
VRPHWLPHV FKDUDFWHUL]HG DV SURWHFWLQJ μSULYDF\¶ KDYH
LQYROYHGWKHLQGLYLGXDOLQWHUHVWLQDYRLGLQJGLVFORVXUHRI
SHUVRQDOPDWWHUV´,GDWVHH1L[RQY$GP¶URI*HQ
6HUYV86 FLWLQJ:KDOHQDQGILQGLQJ
WKDWSXEOLFRIILFLDOVPD\KDYHDSULYDF\LQWHUHVWLQDYRLGLQJ
GLVFORVXUHRISHUVRQDOPDWWHUVWKDWDUHXQUHODWHGWRWKHDFWV
WKH\SHUIRUPLQWKHLURIILFLDOFDSDFLWLHV
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
6HFWLRQ RI WKH .HQWXFN\ &RQVWLWXWLRQ VWDWHV
7KH SHRSOH VKDOO EH VHFXUH LQ WKHLU SHUVRQV KRXVHV SDSHUV DQG
SRVVHVVLRQV IURP XQUHDVRQDEOH VHDUFK DQG VHL]XUH DQG QR
ZDUUDQW VKDOO LVVXH WR VHDUFK DQ\ SODFH RU VHL]H DQ\ SHUVRQ RU
WKLQJ ZLWKRXW GHVFULELQJ WKHP DV QHDUO\ DV PD\ EH QRU ZLWKRXW
SUREDEOH FDXVH VXSSRUWHG E\ RDWK RU DIILUPDWLRQ
.< &2167 7KH .HQWXFN\ &RQVWLWXWLRQ SURYLGHV LQGLYLGXDOV QR
JUHDWHU SURWHFWLRQ IURP XQUHDVRQDEOH VHDUFKHV DQG VHL]XUHV WKDQ GRHV WKH
8QLWHG 6WDWHV &RQVWLWXWLRQ /D)ROOHWWH Y &RPPRQZHDOWK 6:G
.\
)RXUWK$PHQGPHQW±8QUHDVRQDEOH6HDUFK
0U2YHUVWUHHWDUJXHVWKDWWKH/)8&*¶V'LVFORVXUH3ROLF\
FRQVWLWXWHV DQ XQUHDVRQDEOH VHDUFK DQG DQ LQYDVLRQ RI KLV
SULYDF\LQYLRODWLRQRIWKH)RXUWK$PHQGPHQWDQG6HFWLRQ
RIWKH.HQWXFN\&RQVWLWXWLRQ
7KH)RXUWK$PHQGPHQWWRWKH8QLWHG6WDWHV&RQVWLWXWLRQ
SURYLGHV
7KH ULJKW RI WKH SHRSOH WR EH VHFXUH LQ WKHLU SHUVRQ
KRXVHV SDSHUV DQG HIIHFWV DJDLQVW XQUHDVRQDEOH
VHDUFKHV DQG VHL]XUHV VKDOO QRW EH YLRODWHG DQG QR
:DUUDQWVVKDOOLVVXHEXWXSRQSUREDEOHFDXVHVXSSRUWHG
E\2DWKRUDIILUPDWLRQDQGSDUWLFXODUO\GHVFULELQJWKH
SODFH WR EH VHDUFKHG DQG WKH SHUVRQV RU WKLQJV WR EH
VHL]HG
86 &2167DPHQG,98QGHUWKH)RXUWK$PHQGPHQWD
³VHDUFK´RFFXUV³ZKHQDQH[SHFWDWLRQRISULYDF\WKDWVRFLHW\
LV SUHSDUHG WR FRQVLGHU UHDVRQDEOH LV LQIULQJHG´ 8QLWHG
6WDWHVY-DFREVHQ86 ³6HDUFKHVDQG
VHL]XUHV E\ JRYHUQPHQW HPSOR\HUV RU VXSHUYLVRUV RI WKH
SULYDWH SURSHUW\ RI WKHLU HPSOR\HHV DUH VXEMHFW WR WKH
UHVWUDLQWVRIWKH)RXUWK$PHQGPHQW´2¶&RQQRUY2UWHJD
86
-- 10 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
WKURXJKKLVZRUNHPSOR\HHVLQWKH(QJLQHHULQJ'LYLVLRQDUH
VRPHWLPHV SULY\ WR LQIRUPDWLRQ UHJDUGLQJ WKH /)8&*¶V
LQWHUHVWLQDFTXLULQJFHUWDLQUHDOHVWDWH7KXVDFRQIOLFWRI
LQWHUHVWFRXOGDULVHVLPSO\E\YLUWXHRIKLVHPSOR\PHQWZLWKLQ
WKDW GLYLVLRQ 7KH &RXUW WKHUHIRUH ILQGV WKDW WKH GLVWULFW
FRXUW SURSHUO\ FRQFOXGHG WKDW DQ\ SULYDF\ LQWHUHVW WKDW
JRYHUQPHQWHPSOR\HHVVXFKDV0U2YHUVWUHHWPD\KDYHLQ
WKHLUILQDQFLDODIIDLUVLVOLNHO\WREHRXWZHLJKHGE\WKHSXEOLF
LQWHUHVWVWKDWDUHDWVWDNH
7KH &RXUW QRWHV WKDW 3ODLQWLII$SSHOODQW¶V UHOLDQFH RQ
0RRUHY&LW\RI(DVW&OHYHODQGLVPLVSODFHG,Q0RRUHD
SOXUDOLW\RIWKH6XSUHPH&RXUWVWUXFNGRZQDFLW\RUGLQDQFH
WKDW OLPLWHG WKH RFFXSDQF\ RI GZHOOLQJ XQLWV WR VLQJOH
IDPLOLHV DQG GHILQHG ³IDPLO\´ TXLWH QDUURZO\ VXFK WKDW
H[WHQGHGIDPLOLHVFRXOGQRWOLYHWRJHWKHU0RRUH86
DW ,Q VWULNLQJ GRZQ WKH RUGLQDQFH WKH &RXUW
GLVFXVVHG WKH ORQJUHFRJQL]HG SULYDF\ LQWHUHVW RQH KDV LQ
PDWWHUVUHODWLQJWRIDPLO\LQFOXGLQJFKRLFHVUHJDUGLQJIDPLO\
OLYLQJ DUUDQJHPHQWV DQG FRQFOXGHG WKDW ³ZKHQ WKH
JRYHUQPHQW LQWUXGHV RQ FKRLFHV FRQFHUQLQJ IDPLO\ OLYLQJ
DUUDQJHPHQWV WKLV &RXUW PXVW H[DPLQH FDUHIXOO\ WKH
LPSRUWDQFHRIWKHJRYHUQPHQWDOLQWHUHVWVDGYDQFHGDQGWKH
H[WHQWWRZKLFKWKH\DUHVHUYHGE\WKHFKDOOHQJHGUHJXODWLRQ´
,GDW7KXV0U2YHUVWUHHWLVLQFRUUHFWLQKLVDVVHUWLRQ
WKDWXQGHU0RRUHWKHJRYHUQPHQWLVFRPSOHWHO\SURKLELWHG
IURPLQTXLULQJLQWRRQH¶VIDPLO\OLYLQJDUUDQJHPHQWV7RWKH
FRQWUDU\ ZKLOH WKHUH PD\ EH D SULYDF\ ULJKW WKDW SURWHFWV
RQH¶VULJKWWRGHWHUPLQHRQH¶VIDPLO\OLYLQJ DUUDQJHPHQWV
WKDW ULJKW GRHV QRW SURWHFW VXFK DUUDQJHPHQWV IURP EHLQJ
GLVFORVHG
7KHUHIRUHWKLV&RXUWILQGVWKDWWKHGLVWULFWFRXUWGLGQRWHUU
LQLWVOHJDOFRQFOXVLRQWKDW3ODLQWLII$SSHOODQWLVXQOLNHO\WR
VXFFHHG RQ WKH PHULWV RI KLV FODLP WKDW WKH /)8&* 5HDO
3URSHUW\3ROLF\DQG'LVFORVXUH)RUPYLRODWHKLVFRQVWLWXWLRQDO
ULJKWWRSULYDF\
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
7KLV&RXUWKDVEHHQORDWKWRYLHZHLWKHU:KDOHQRU1L[RQ
DVKDYLQJFUHDWHGDFRQVWLWXWLRQDOSULYDF\ULJKWWKDWSURWHFWV
DJDLQVW WKH GLVFORVXUH RI SHUVRQDO LQIRUPDWLRQ 7R WKH
FRQWUDU\ WKLV &RXUW KDV UHDG WKRVH FDVHV TXLWH QDUURZO\
,QGHHGLQ-3Y'H6DQWL)G WK&LU ZH
VWDWHG
$EVHQWDFOHDULQGLFDWLRQIURPWKH6XSUHPH &RXUWZH
ZLOO QRW FRQVWUXH LVRODWHG VWDWHPHQWV LQ :KDOHQ DQG
1L[RQ PRUH EURDGO\ WKDQ WKHLU FRQWH[W DOORZV WR
UHFRJQL]HDJHQHUDOFRQVWLWXWLRQDOULJKWWRKDYHGLVFORVXUH
RI SULYDWH LQIRUPDWLRQ PHDVXUHG DJDLQVW WKH QHHG IRU
GLVFORVXUH
>:@HQRWHWKDWRIWKHFDVHVFLWHGKROGLQJWKDWWKHUHLVD
FRQVWLWXWLRQDO ULJKW WR QRQGLVFORVXUH RI SULYDWH
LQIRUPDWLRQ QRQH FLWHV D FRQVWLWXWLRQDO SURYLVLRQ LQ
VXSSRUWRILWVKROGLQJ,WLVXQGHUVWDQGDEOHWKRXJKUDUH
WRIDLOWRFLWHDVXSSRUWLQJSURYLVLRQRIWKH&RQVWLWXWLRQ
ZKHQRQHLVGHDOLQJZLWKVXFKZHOOHVWDEOLVKHGULJKWVDV
WKRVH LQ WKH ILUVW RU IRXUWK DPHQGPHQWV ,W LV TXLWH D
WHOOLQJIDLOXUHZKHQWKHFRQVWLWXWLRQDOULJKWDWLVVXHLVQRW
ZHOOHVWDEOLVKHG
)RU DOO WKH IRUHJRLQJ UHDVRQV ZH FRQFOXGH WKDW WKH
&RQVWLWXWLRQ GRHV QRW HQFRPSDVV D JHQHUDO ULJKW WR
QRQGLVFORVXUHRISULYDWHLQIRUPDWLRQ
,GDW7KH'H6DQWLFRXUWXOWLPDWHO\KHOGWKDWWKH
FRQVWLWXWLRQDOULJKWWRSULYDF\LVUHVWULFWHGWRSURWHFWLQJ³WKRVH
SHUVRQDOULJKWVWKDWFDQEHGHHPHGμIXQGDPHQWDO¶RUμLPSOLFLW
LQ WKH FRQFHSW RI RUGHUHG OLEHUW\¶´ ,G DW FLWDWLRQV
RPLWWHG 6LQFH'H6DQWLWKLV&RXUWKDVQRWVWUD\HGIURPLWV
KROGLQJDQGFRQWLQXHVWRHYDOXDWHSULYDF\FODLPVEDVHGRQ
ZKHWKHUWKHLQWHUHVWVRXJKWWREHSURWHFWHGLVDIXQGDPHQWDO
LQWHUHVW RU DQ LQWHUHVW LPSOLFLW LQ WKH FRQFHSW RI RUGHUHG
OLEHUW\6HHHJ&XWVKDOOY6XQGTXLVW)G
WK&LU ILQGLQJWKDWDVWDWHODZZKLFKUHTXLUHGVH[
RIIHQGHUV WR UHJLVWHU ZLWK ODZ HQIRUFHPHQW DJHQFLHV DQG
-- 11 of 12 --
2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
1R
DOORZHG ODZ HQIRUFHPHQW RIILFLDOV WR UHOHDVH UHJLVWU\
LQIRUPDWLRQWRWKHSXEOLFGLGQRWYLRODWHWKHVH[RIIHQGHU¶V
FRQVWLWXWLRQDOULJKWWRSULYDF\EHFDXVHQRIXQGDPHQWDOLQWHUHVW
ZDVLPSOLFDWHG .DOOVWURPY&LW\RI&ROXPEXV )G
WK &LU FRQFOXGLQJ WKDW WKH SULYDF\
LQWHUHVW RI XQGHUFRYHU SROLFH RIILFHUV LQ WKH SHUVRQDO
LQIRUPDWLRQFRQWDLQHGLQWKHLUSHUVRQQHOUHFRUGV±WKHLQWHUHVW
LQ SUHVHUYLQJ WKHLU OLYHV DQG WKH OLYHV RI WKHLU IDPLOLHV ±
LPSOLFDWHG D IXQGDPHQWDO OLEHUW\ LQWHUHVW :KHQ DQ
LQGLYLGXDO¶V LQWHUHVW LQ WKH QRQGLVFORVXUH RI SHUVRQDO
LQIRUPDWLRQLVRIDFRQVWLWXWLRQDOGLPHQVLRQWKH&RXUWPXVW
EDODQFHWKHLQGLYLGXDO¶VLQWHUHVWLQQRQGLVFORVXUHDJDLQVWWKH
SXEOLF¶VLQWHUHVWLQWKHLQYDVLRQRISULYDF\.DOOVWURP
)GDW FLWLQJ'H6DQWL)GDW
0U2YHUVWUHHWDOOHJHVILUVWWKDWWKH/)8&*KDVLQIULQJHG
KLVULJKWWRSULYDF\EHFDXVHWKH3ROLF\FRQVWLWXWHVDGHPDQG
IRUWKHGLVFORVXUHRIIDPLO\OLYLQJDUUDQJHPHQWVZKLFKKH
FODLPVLVSURKLELWHGEHFDXVHRIWKHSULYDF\LQWHUHVWVDWVWDNH
6HH0RRUHY&LW\RI(DVW&OHYHODQG86
6HFRQGKHFRQWHQGVWKDWWKHLQWUXVLRQRQKLVSULYDF\LQWHUHVW
LV QRW MXVWLILHG EHFDXVH XQOLNH RWKHU SXEOLF RIILFLDOV 0U
2YHUVWUHHW LV QRW LQ D SRVLWLRQ WR LQIOXHQFH WKH SODQQLQJ
]RQLQJ RU KRXVLQJ LQ )D\HWWH &RXQW\ E\ YLUWXH RI KLV
HPSOR\PHQW )LQDOO\ 0U 2YHUVWUHHW DUJXHV WKDW DQ\
OHJLWLPDWH LQWHUHVW WKH JRYHUQPHQW PD\ KDYH LQ REWDLQLQJ
LQIRUPDWLRQUHJDUGLQJKLVUHDOHVWDWHKROGLQJVLVRXWZHLJKHG
E\ WKH IDFW WKDW WKH /)8&* LQWHQGV WR PDNH WKH SURYLGHG
LQIRUPDWLRQDPDWWHURISXEOLFUHFRUG
7KH&RXUWILQGVWKDWWKHGLVWULFWFRXUWFRUUHFWO\FRQFOXGHG
WKDW3ODLQWLII$SSHOODQWLVXQOLNHO\WRVXFFHHGRQKLVULJKWWR
SULYDF\FODLP%HFDXVHWKLV&RXUWKDVGHWHUPLQHGWKDWWKH
FRQVWLWXWLRQDO ULJKW WR SULYDF\ LV SURWHFWHG RQO\ ZKHQ WKH
LQWHUHVWDWVWDNHLQYROYHVDIXQGDPHQWDOLQWHUHVWRUDQLQWHUHVW
WKDWLVLPSOLFLWLQWKHFRQFHSWRIRUGHUHGOLEHUW\WKH&RXUW¶V
DQDO\VLV PXVW EHJLQ ZLWK D GHWHUPLQDWLRQ RI ZKHWKHU 0U
2YHUVWUHHW¶VSULYDF\LQWHUHVWLQKLVILQDQFLDODIIDLUVLVVXFKDQ
LQWHUHVW7KH6XSUHPH&RXUWKDVIRXQGWKDW³IXQGDPHQWDO´
1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH
8UEDQ&RXQW\*RY¶W
7KH IDFW WKDW WKH /)8&* 3ROLF\ UHTXLUHV LQIRUPDWLRQ DERXW 0U
2YHUVWUHHW¶V LPPHGLDWH IDPLO\ GRHV QRW DOWHU WKLV FRQFOXVLRQ DV PHPEHUV
RI 0U 2YHUVWUHHW¶V LPPHGLDWH IDPLO\ KDYH QR PRUH D IXQGDPHQWDO SULYDF\
LQWHUHVW LQ WKHLU ILQDQFLDO DIIDLUV WKDQ KH GRHV
LQWHUHVWV LQFOXGH WKH SULYDF\ LQWHUHVW RQH KDV LQ PDWWHUV
UHODWLQJ WR PDUULDJH SURFUHDWLRQ FRQWUDFHSWLRQ IDPLO\
UHODWLRQVKLSVFKLOGUHDULQJDQGHGXFDWLRQ6HH3DXOY'DYLV
86 7KHSULYDF\LQWHUHVWRQHPD\KDYH
LQRQH¶VSHUVRQDOILQDQFHVDQGUHDOHVWDWHKROGLQJVLVIDUDILHOG
IURPVXFKLQWLPDWHFRQFHUQV6HH+DKQY6WDU%DQN
)G WK &LU ILQGLQJ WKDW SURGXFWLRQ RI
SODLQWLIIV¶ ORDQ ILOH WR WKLUG SDUWLHV LV ³IDU DILHOG´ IURP WKH
IXQGDPHQWDO LQWHUHVWV SURWHFWHG E\ WKH ULJKW WR SULYDF\
7KHUHIRUH0U2YHUVWUHHW¶VFODLPWKDWWKH/)8&*LQIULQJHG
KLVULJKWWRSULYDF\LVOLNHO\WRIDLORQWKHPHULWV
(YHQLIWKHIDFWVGLGLPSOLFDWHDIXQGDPHQWDOLQWHUHVWWKH
&RXUWZRXOGQRQHWKHOHVVFRQFOXGHWKDW3ODLQWLII$SSHOODQW¶V
ULJKWWRSULYDF\FODLPZLOOOLNHO\IDLOEHFDXVHDQ\SURWHFWHG
SULYDF\ LQWHUHVW WKDW KH PLJKW KDYH ZLOO SUREDEO\ EH
RXWZHLJKHG E\ WKH SXEOLF LQWHUHVW LQ WKH GLVFORVXUH RI KLV
SHUVRQDOLQIRUPDWLRQ,Q%DUU\Y1HZ<RUN)G
G &LU WKH 6HFRQG &LUFXLW FRQFOXGHG WKDW WKH
PDQGDWRU\GLVFORVXUHRIILQDQFLDOLQIRUPDWLRQE\JRYHUQPHQW
HPSOR\HHVDQGWKHLUVSRXVHVZKLFKZDVWKHQPDGHDYDLODEOH
WRWKHSXEOLFLPSOLFDWHGWKHFRQVWLWXWLRQDOULJKWWRSULYDF\
EXWWKDWVXFKULJKWZDVQRWLQIULQJHGEHFDXVHWKHPDQGDWRU\
GLVFORVXUHZDVMXVWLILHGE\DVXEVWDQWLDOSRVVLEO\FRPSHOOLQJ
VWDWHLQWHUHVW,GDW HPSKDVL]LQJWKHJRYHUQPHQW¶V
LQWHUHVWV LQ GHWHUULQJ FRUUXSWLRQ DQG FRQIOLFWV RI LQWHUHVW
DPRQJ FLW\ RIILFHUV DQG HPSOR\HHV DQG HQKDQFLQJ SXEOLF
FRQILGHQFHLQWKHLQWHJULW\RIJRYHUQPHQW $VWKH6HFRQG
&LUFXLW GLG LQ %DUU\ WKLV &RXUW UHFRJQL]HV WKH VXEVWDQWLDO
SXEOLFLQWHUHVWLQSUHYHQWLQJFRUUXSWLRQLQORFDOJRYHUQPHQW
DQGHQVXULQJWKDWQRFRQIOLFWRILQWHUHVWH[LVWVEHWZHHQWKH
SHUVRQDOOLYHVDQGSXEOLFGXWLHVRIJRYHUQPHQWHPSOR\HHV
6LJQLILFDQWO\GHVSLWH0U2YHUVWUHHW¶VFRQWHQWLRQWKDWKHKDV
QRVLJQLILFDQWLQIOXHQFHRQ]RQLQJRURWKHUUHDOHVWDWHLVVXHV
-- 12 of 12 --
Connect Omnilex to search the legal corpus from your AI assistant.