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)
01-2648; 01-2725•03a0043p.06
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+( 7$8%0$1 &203$1<
3ODLQWLII$SSHOOHH
Y
:(%)($76D7H[DV&RPSDQ\
DQG+(15< 0,6+.2))DQ
LQGLYLGXDO
'HIHQGDQWV$SSHOODQWV
;!
1
1RV
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1R²/DZUHQFH3=DWNRII&KLHI'LVWULFW-XGJH
$UJXHG2FWREHU
'HFLGHGDQG)LOHG)HEUXDU\
%HIRUH%2**668+5+(,15,&+DQG&/$<&LUFXLW
-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('3DXO$/HY\38%/,&&,7,=(1/,7,*$7,21
*5283 :DVKLQJWRQ '& IRU $SSHOODQWV 'RXJODV :
6SULQNOH *,))25' .5$66 *52+ 635,1./(
-- 1 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
$1'(5621 &,7.2:6.,%LUPLQJKDP0LFKLJDQIRU
$SSHOOHH21%5,()3DXO$/HY\38%/,&&,7,=(1
/,7,*$7,21*5283:DVKLQJWRQ '&IRU$SSHOODQWV
-XOLH$*UHHQEHUJ*,))25'.5$66*52+635,1./(
$1'(5621 &,7.2:6.,%LUPLQJKDP0LFKLJDQIRU
$SSHOOHH $QQ %HHVRQ .HYLQ 6 %DQNVWRQ $0(5,&$1
&,9,//,%(57,(681,211HZ<RUN1HZ<RUN0LFKDHO
-6WHLQEHUJ.DU\/0RVV$0(5,&$1&,9,//,%(57,(6
81,21'HWURLW0LFKLJDQIRU$PLFXV&XULDH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
68+5+(,15,&+ &LUFXLW -XGJH 'HIHQGDQW$SSHOODQW
+HQU\ 0LVKNRII GED :HEIHDWV DSSHDOV IURP WZR
SUHOLPLQDU\LQMXQFWLRQVUHVSHFWLYHO\HQWHUHGRQ2FWREHU
DQG'HFHPEHULQWKH8QLWHG6WDWHV'LVWULFW
&RXUWIRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQWRJHWKHUJUDQWLQJ
3ODLQWLII$SSHOOHH WKH 7DXEPDQ &RPSDQ\¶V 7DXEPDQ
UHTXHVWWRSUHYHQW0LVKNRIIIURPXVLQJVL[LQWHUQHWGRPDLQ
QDPHVEHFDXVHWKH\OLNHO\YLRODWH7DXEPDQ¶VWUDGHPDUNVLQ
WKHWHUPV³7DXEPDQ´DQG³7KH6KRSVDW:LOORZ%HQG´
0LVKNRII FODLPV WZR DVVLJQPHQWV RI HUURU )LUVW KH
FRQWHQGVWKDWWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH(DVWHUQ
'LVWULFWRI0LFKLJDQODFNHGSHUVRQDOMXULVGLFWLRQRYHUKLP
6HFRQG KH FODLPV WKDW HYHQ LI MXULVGLFWLRQ ZDV SURSHU
7DXEPDQLVXQOLNHO\WRVXFFHHGRQWKHPHULWVRILWVWUDGHPDUN
FODLPVEHFDXVHLWKDVQRWGHPRQVWUDWHGWKDWFXVWRPHUVZRXOG
OLNHO\ EH FRQIXVHG EHWZHHQ WKH RULJLQ RI 7DXEPDQ¶V DQG
0LVKNRII¶VSURGXFWV
:HUHYHUVHWKHGHFLVLRQRIWKHGLVWULFWFRXUWDQGGLVVROYH
ERWKLQMXQFWLRQV:HILQGILUVWWKDW0LVKNRIIKDVZDLYHGDQ\
FKDOOHQJHKHPLJKWKDYHWRWKHSHUVRQDOMXULVGLFWLRQRIWKH
GLVWULFWFRXUWLQWKH(DVWHUQ'LVWULFWRI0LFKLJDQ6HFRQG
7DXEPDQKDGIDLOHGWRGHPRQVWUDWHDOLNHOLKRRGRIVXFFHVVRQ
WKH PHULWV EHFDXVH 0LVKNRII¶V XVH ZDV QRW ³LQ FRQQHFWLRQ
-- 2 of 10 --
1RV 7DXEPDQ&RY:HEIHDWVHWDO
ZLWKWKHVDOHRUDGYHUWLVLQJRIJRRGVRUVHUYLFHV´DQGWKHUHLV
QROLNHOLKRRGRIFRQIXVLRQDPRQJFRQVXPHUV
,)DFWV
0LVKNRII LV D UHVLGHQW RI &DUUROOWRQ 7H[DV DQG D ZHE
GHVLJQHUE\WUDGH8SRQKHDULQJWKHQHZVWKDW7DXEPDQD
'HODZDUHFRUSRUDWLRQZLWKLWVSULQFLSDOSODFHRIEXVLQHVVLQ
0LFKLJDQZDVEXLOGLQJDVKRSSLQJPDOOFDOOHG³7KH6KRSVDW
:LOORZ %HQG´ LQ 3ODQR 7H[DV 0LVKNRII UHJLVWHUHG WKH
GRPDLQ QDPH ³VKRSVDWZLOORZEHQGFRP´ DQG FUHDWHG DQ
LQWHUQHW ZHEVLWH ZLWK WKDW DGGUHVV 0LVKNRII KDG QR
FRQQHFWLRQWRWKHPDOOH[FHSWIRUWKHIDFWWKDWLWZDVEHLQJ
EXLOWQHDUKLVKRPH
0LVKNRII¶V ZHEVLWH IHDWXUHG LQIRUPDWLRQ DERXW WKH PDOO
ZLWK D PDS DQG OLQNV WR LQGLYLGXDO ZHEVLWHV RI WKH WHQDQW
VWRUHV 7KH VLWH DOVR FRQWDLQHG D SURPLQHQW GLVFODLPHU
LQGLFDWLQJWKDW0LVKNRII¶VVLWHZDVXQRIILFLDODQGDOLQNWR
7DXEPDQ¶VRIILFLDOVLWHIRUWKHPDOOIRXQGDWWKHDGGUHVVHV
³WKHVKRSVDWZLOORZEHQGFRP´DQG³VKRSZLOORZEHQGFRP´
0LVKNRII GHVFULEHV KLV VLWH DV D ³IDQ VLWH´ ZLWK QR
FRPPHUFLDOSXUSRVH7KHVLWHGLGKRZHYHUFRQWDLQDOLQNWR
WKHZHEVLWHRIDFRPSDQ\UXQE\0LVKNRII¶VJLUOIULHQG'RQQD
+DUWOH\ZKHUHVKHVROGFXVWRPPDGHVKLUWVXQGHUWKHQDPH
³VKLUWEL]FRP´ DQG WR 0LVKNRII¶V VLWH IRU KLV ZHE GHVLJQ
EXVLQHVV³:HEIHDWV´
:KHQ7DXEPDQGLVFRYHUHGWKDW0LVKNRIIKDGFUHDWHGWKLV
VLWHLWGHPDQGHGKHUHPRYHLWIURPWKHLQWHUQHW7DXEPDQ
FODLPHG WKDW 0LVKNRII¶V XVH RI WKH GRPDLQ QDPH
³VKRSVDWZLOORZEHQGFRP´LQIULQJHGRQLWVUHJLVWHUHGPDUN
³7KH6KRSVDW:LOORZ%HQG´7DXEPDQILOHGDFRPSODLQWRQ
$XJXVWFODLPLQJLQWHUDOLDWUDGHPDUNLQIULQJHPHQW
XQGHU WKH /DQKDP $FW 86& DVNLQJ IRU D
SUHOLPLQDU\ LQMXQFWLRQ DQG GHPDQGLQJ VXUUHQGHU RI
0LVKNRII¶VGRPDLQQDPH
0LVKNRIIUHVSRQVLYHO\UHJLVWHUHGILYHPRUHGRPDLQQDPHV
WDXEPDQVXFNVFRP VKRSVDWZLOORZEHQGVXFNVFRP
-- 3 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
6LQFH WKH LVVXDQFH RI WKH LQMXQFWLRQV 0LVKNRII KDV DSSDUHQWO\
FUHDWHG D VL[WK ³FRPSODLQW VLWH´ ³JLIIRUGNUDVVJURKVSULQNOHVXFNVFRP´
UHIHUHQFLQJ WKH ODZ ILUP UHSUHVHQWLQJ 7DXEPDQ RQ DSSHDO 7KLV GRPDLQ
QDPH ZDV QRW D SDUW RI WKH 'HFHPEHU SUHOLPLQDU\ LQMXQFWLRQ RUGHU
WKDW HQMRLQHG 0LVKNRII IURP PDLQWDLQLQJ WKH RWKHU ³FRPSODLQW QDPHV´
7DXEPDQ VRXJKW WKH LQMXQFWLRQ XQGHU RWKHU FODLPV WRR LQFOXGLQJ
YLRODWLRQ RI WKH $QWLF\EHUVTXDWWLQJ $FW +RZHYHU WKH GLVWULFW FRXUW
JUDQWHG WKH LQMXQFWLRQ EDVHG RQO\ RQ WKH /DQKDP $FW FODLP $FFRUGLQJO\
WKDW LV WKH RQO\ LVVXH EHIRUH WKLV &RXUW
W K H V K R S V D W Z L O O R Z E H Q G V X F N V F R P
ZLOORZEHQGPDOOVXFNVFRP DQG ZLOORZEHQGVXFNVFRP
$OOILYHRIWKHVHZHEQDPHVOLQNWRWKHVDPHVLWHZKLFKLVD
UXQQLQJHGLWRULDORQ0LVKNRII¶VEDWWOHZLWK7DXEPDQDQGLWV
ODZ\HUVDQGH[KDXVWLYHO\GRFXPHQWVKLVSURFHHGLQJVLQERWK
WKHGLVWULFWFRXUWDQGWKLV&RXUWERWKWKURXJKYLVXDOVFDQVRI
ILOHG PRWLRQV DV ZHOO DV D ILUVW SHUVRQ QDUUDWLYH IURP
0LVKNRII ,Q LQWHUQHW SDUODQFH D ZHE QDPH ZLWK D
³VXFNVFRP´PRQLNHUDWWDFKHGWRLWLVNQRZQDVD³FRPSODLQW
QDPH´DQGWKHSURFHVVRIUHJLVWHULQJDQGXVLQJVXFKQDPHV
LV NQRZQ DV ³F\EHUJULSLQJ´ 6HH HJ 0DUWKD .HOOH\ ,V
/LDELOW\ -XVW D /LQN $ZD\" 7UDGHPDUN 'LOXWLRQ E\
7DUQLVKPHQW8QGHUWKH)HGHUDO7UDGHPDUN'LOXWLRQ$FWRI
DQG+\SHUOLQNVRQWKH:RUOG:LGH:HE- ,17(//
3523 / GHILQLQJ³F\EHUJULSLQJ´ 5RQDOG
) /RSH] &RUSRUDWH 6WUDWHJLHV IRU $GGUHVVLQJ ,QWHUQHW
³&RPSODLQW´ 6LWHV ,17¶/ / 35$&7,&80
$XWXPQ JLYLQJ H[DPSOHV RI GLIIHUHQW W\SHV RI
³FRPSODLQW´VLWHV
2Q2FWREHUWKHGLVWULFWFRXUWJUDQWHG7DXEPDQ¶V
PRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQHQMRLQLQJ0LVKNRIIIURP
XVLQJWKHILUVWKRVWQDPH³VKRSVDWZLOORZEHQGFRP´2Q
2FWREHU 7DXEPDQ ILOHG D PRWLRQ WR DPHQG WKH
SUHOLPLQDU\LQMXQFWLRQWRLQFOXGHWKHILYH³FRPSODLQWQDPHV´
XVHGE\0LVKNRII2Q'HFHPEHUWKHGLVWULFWFRXUW
DOORZHGWKHDPHQGPHQWDQGHQMRLQHG0LVKNRIIIURPXVLQJ
WKHFRPSODLQWQDPHV
1RV 7DXEPDQ&RY:HEIHDWVHWDO
7DXEPDQ LV QRW OLNHO\ WR VXFFHHG RQ WKH PHULWV RI WKH
³VKRSVDWZLOORZEHQGFRP´ FODLP SUHFOXGHV DQ\ IXUWKHU
GLVFXVVLRQRIWKH6DIH'LVWDQFH5XOH
,9&RQFOXVLRQ
)RUWKHIRUHJRLQJUHDVRQVZH5(9(56(WKHGHFLVLRQRI
WKHGLVWULFWFRXUWDQGGLVVROYHERWKSUHOLPLQDU\LQMXQFWLRQV
SUHYHQWLQJ 0LVKNRII IURP XVLQJ WKH GRPDLQ QDPH
³VKRSVDWZLOORZEHQGFRP´DQGWKHILYH³FRPSODLQWQDPHV´
OLVWHGDERYH
-- 4 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
FKDUDFWHULVWLFRIWKHSODLQWLIIVRDVWRSXWWKHSXEOLFRQQRWLFH
WKDWWKHWZRDUHQRWUHODWHG
:H QHHG QRW ILQG ZKHWKHU WKH 6DIH 'LVWDQFH 5XOH KDV
VXUYLYHGWKHHQDFWPHQWRIWKH/DQKDP$FWEHFDXVHHYHQLILW
LV VWLOO JRRG ODZ LW GRHV QRW DSSO\ KHUH )LUVW WKH 6DIH
'LVWDQFH 5XOH KDV RQO\ EHHQ DSSOLHG LQ VHWWLQJV ZKHUH WKH
VHFRQGXVHZDVPHUHO\DVOLJKWGHYLDWLRQRIWKHILUVWXVHDQG
ZDV DOVR FRPPHUFLDO 6HH %URGHULFN )G DW
GHYHORSLQJ6DIH'LVWDQFH5XOHLQLQVWDQFHZKHQLQIULQJHU
DWWHPSWHG WR FKDQJH RIIHQGLQJ XVH IURP ³DXWRZOLQH´ WR
³DXWRWRZOLQH´ %DGJHU0HWHU,QFY*ULQHOO&RUS)G
WK&LU DSSO\LQJ6DIH'LVWDQFH5XOHWR
SUHYHQW LQIULQJHU IURP FKDQJLQJ LQIULQJLQJ ORJR LQ WULYLDO
ZD\V EHFDXVH VXFK FKDQJHV ZRXOG IRUFH UHOLWLJDWLRQ RI
HVVHQWLDOO\WKHVDPHLVVXH 7KH6DIH'LVWDQFH5XOHKDVQHYHU
EHHQ DSSOLHG ZKHQ WKH VHFRQG XVH LV D QRQFRPPHUFLDO
FULWLFDO FRPPHQWDU\ EXW RQO\ ZKHUH WKH VHFRQG XVH LV D
GLIIHUHQW QDPH IRU WKH VDPH SURGXFW 6HH HJ 7DPNR
5RRILQJ3URGV,QFY,GHDO5RRILQJ&R/WG)G
VW &LU DSSO\LQJ 6DIH 'LVWDQFH 5XOH ZKHUH
LQIULQJHU VLPSO\ WULHG WR HVFDSH OLDELOLW\ E\ FKDQJLQJ
LQIULQJLQJ ³+HULWDJH 6HULHV´ WR ³+6HULHV´ %URGHULFN
)G DW $V VWDWHG DERYH WKH )LUVW $PHQGPHQW
SURWHFWV0LVKNRII¶VFRPPHQWDU\DQGFULWLFLVPDQGQHJDWHV
WKH6DIH'LVWDQFH5XOHWRDQ\H[WHQWLWPLJKWRWKHUZLVHKDYH
DSSOLHG
6HFRQGWKH6DIH'LVWDQFH5XOHZDVPHDQWWREHDSSOLHG
RQO\DJDLQVWSURYHQLQIULQJHUV6HH%URGHULFN)GDW
UHIHUULQJ RQO\ WR SHUVRQV ³RQFH FRQYLFWHG RI XQIDLU
FRPSHWLWLRQ´ VHHDOVR7DPNR5RRILQJ3URGXFWV)G
DW DSSO\LQJ6DIH'LVWDQFH5XOHRQO\DIWHUGHIHQGDQWKDG
EHHQIRXQGLQFRQWHPSWRIDQLQMXQFWLRQ FI3ULQFHRI3HDFH
(QWHUVY.ZRN6KLQJ,PSRUW([SRUW,QF1R&
:/DW -XO\1'&DO VWDWLQJWKDW
WKH6DIH'LVWDQFH5XOHGRHVQRWDSSO\ZKHUH³RQHZDVQRW
μFDXJKW¶ LQIULQJLQJ D WUDGHPDUN´ 0LVKNRII KDV QRW
SUHYLRXVO\EHHQIRXQGOLDEOHRILQIULQJHPHQWQRULQFRQWHPSW
RI HLWKHU LQMXQFWLRQ $FFRUGLQJO\ RXU ILQGLQJ DERYH WKDW
1RV 7DXEPDQ&RY:HEIHDWVHWDO
2Q1RYHPEHU0LVKNRIIILOHGDQRWLFHRIDSSHDOIURPWKH
2FWREHULQMXQFWLRQ2Q'HFHPEHU0LVKNRIIILOHGD
QRWLFH RI DSSHDO IURP WKH 'HFHPEHU LQMXQFWLRQ
$FFRUGLQJO\HDFKFDVHLVWLPHO\EHIRUHWKLV&RXUWXQGHU)HG
5$SS3 D $ 7KHFDVHVKDYHEHHQFRQVROLGDWHGRQ
DSSHDO
,,3HUVRQDO-XULVGLFWLRQ
0LVKNRIIILUVWFODLPVWKDWWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ ODFNV SHUVRQDO
MXULVGLFWLRQRYHUKLP+HDVVHUWVWKDWVLQFHKHLVDUHVLGHQWRI
7H[DVWKHZHEVLWHVZHUHFUHDWHGLQ7H[DVDQGWKHPDOOZKLFK
LVWKHVXEMHFWRIWKHZHEVLWHVVWDQGVLQ7H[DVDIHGHUDOFRXUW
LQ 0LFKLJDQ FDQQRW H[HUFLVH MXULVGLFWLRQ RYHU KLP DV D
GHIHQGDQW
$OWKRXJK 0LVKNRII UDLVHV VHULRXV GRXEWV LQ RXU PLQGV
DERXWZKHWKHUWKHGLVWULFWFRXUWSURSHUO\KHOGMXULVGLFWLRQKLV
PRWLRQ ZDV XOWLPDWHO\ XQWLPHO\ $OWKRXJK VXEMHFWPDWWHU
MXULVGLFWLRQFDQEHFKDOOHQJHGDWDQ\WLPH)HG5&LY3
K VHHDOVR$PEURVHY:HOFK)G WK
&LU HYHQ FROODWHUDOO\ DIWHU GLVSRVLWLRQ VHH )HG 5
$SS3 E DFKDOOHQJHWRSHUVRQDOMXULVGLFWLRQPXVWEH
UDLVHGLQWKHILUVWUHVSRQVLYHSOHDGLQJRUEHZDLYHG)HG5
&LY3 K VHHHJ5H\QROGVY,QW¶O$PDWHXU$WKOHWLF
)HG¶Q)G WK&LU ,Q5H:ROYHULQH
5DGLR &R )G Q WK &LU
0LVKNRIIGLGQRWUDLVHWKHLVVXHRISHUVRQDOMXULVGLFWLRQLQKLV
RULJLQDODQVZHU
0LVKNRIIDVNVWKLVFRXUWIRUOHHZD\LQOLJKWRIWKHIDFWWKDW
KHZDVRULJLQDOO\OLWLJDWLQJWKLVFDVHSURVH8QIRUWXQDWHO\DV
WKHGLVWULFWFRXUWVWDWHGWKHUHLVQROHJDOEDVLVIRUVRGRLQJ
7KLVLVQRWWRVD\WKDWWKLV&RXUWZLOOQHYHUJUDQWOHHZD\WRD
SUR VH SDUW\ EXW 0LVKNRII KDV QRW SUHVHQWHG WKH NLQG RI
H[WUDRUGLQDU\FLUFXPVWDQFHVWKDWZRXOGZDUUDQWVXFKDFWLRQ
$FFRUGLQJO\ZHILQGWKDW0LVKNRIIKDVZDLYHGDQ\FKDOOHQJH
WRSHUVRQDOMXULVGLFWLRQ
-- 5 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
,,,$QDO\VLV
0LVKNRIIFODLPVWKHLQMXQFWLRQVSUHYHQWLQJKLVXVHRIWKH
GRPDLQ QDPH ³VKRSVDWZLOORZEHQGFRP´ DQG WKH ILYH
³FRPSODLQWQDPHV´DUHLQDSSURSULDWHEHFDXVH7DXEPDQKDV
QRWGHPRQVWUDWHGDOLNHOLKRRGRIVXFFHVVRQWKHPHULWVDQG
EHFDXVH WKH RUGHUV UHSUHVHQW D SULRU UHVWUDLQW RQ KLV )LUVW
$PHQGPHQWULJKWWRVSHDN
$6WDQGDUGRI5HYLHZ
:H UHYLHZ WKH GLVWULFW FRXUW¶V JUDQW RI D PRWLRQ IRU D
SUHOLPLQDU\LQMXQFWLRQIRUDEXVHRIGLVFUHWLRQ0DUFKZLQVNL
Y+RZDUG)G WK&LU %OXH&URVV
%OXH6KLHOG0XWRI2KLRY%OXH&URVV %OXH6KLHOG$VV¶Q
)G WK&LU ³$GLVWULFWFRXUWDEXVHVLWV
GLVFUHWLRQZKHQLWUHOLHVRQFOHDUO\HUURQHRXVILQGLQJVRIIDFW
RUZKHQLWLPSURSHUO\DSSOLHVWKHODZRUXVHVDQHUURQHRXV
OHJDOVWDQGDUG8QGHUWKLVVWDQGDUGWKLVFRXUWPXVWUHYLHZ
WKHGLVWULFWFRXUW VOHJDOFRQFOXVLRQVGHQRYRDQGLWVIDFWXDO
ILQGLQJV IRU FOHDU HUURU´ 2ZQHU2SHUDWRU ,QGHS 'ULYHUV
$VV¶QY%LVVHOO)G WK&LU
:H KDYH KHOG WKDW DQ LQMXQFWLRQ LV SURSHU LQ WUDGHPDUN
FDVHVZKHUH
7KHUHLVDOLNHOLKRRGRIVXFFHVVRQWKHPHULWV
7KHUHLVWKHSRWHQWLDOIRULUUHSDUDEOHKDUP
7KHUHLVWKHSRWHQWLDORIDGYHUVHSXEOLFLPSDFW
3RWHQWLDOKDUPWRWKHSODLQWLIIRXWZHLJKVWKHSRWHQWLDO
KDUPWRWKHGHIHQGDQW
6HH5RFNDQG5ROO+DOORI)DPHDQG0XVHXP,QFY*HQWLOH
3URGV)G WK&LU 1RQHRIWKHVH
IDFWRUVVWDQGLQJDORQHLVDSUHUHTXLVLWHWRUHOLHIUDWKHUWKH\
PXVWEHEDODQFHG*ROGHQY.HOVH\+DUULV&R)G
WK &LU VHH DOVR &RXQW\ 6HF $JHQF\ Y 2KLR
'HS¶WRI&RPPHUFH)G WK&LU
1RV 7DXEPDQ&RY:HEIHDWVHWDO
7KH UXOH KDV LWV URRWV HYHQ EHIRUH %URGHULFN ,Q &RFD &ROD &R Y
*D\2OD &R ) WK &LU WKRXJK QRW UHIHUULQJ WR WKH 6DIH
'LVWDQFH 5XOH DV VXFK ZH KHOG WKDW D VRIW GULQN PDQXIDFWXUHU RQFH IRXQG
WR EH LQIULQJLQJ RQ &RFD&ROD¶V WUDGHPDUNV FRXOG QR ORQJHU FRQWLQXH WR
XVH DQ\ PDUN ZKLFK PLJKW EH IRXQG WR UHVHPEOH &RFD&ROD ² QDPHO\
XQPDUNHG UHG EDUUHOV 7KLV ZDV VR HYHQ WKRXJK UHG EDUUHOV LQ DQG RI
WKHPVHOYHV ZRXOG QRW FRQVWLWXWH LQIULQJHPHQW RI D WUDGHPDUN HLWKHU LQ
RU XQGHU WKH /DQKDP $FW WRGD\ %XW FRQWLQXHG XVH RI WKH EDUUHOV
DIWHU EHLQJ IRXQG WR EH DQ LQIULQJHU ZRXOG KDYH SHUPLWWHG WKH GHIHQGDQW
WR FRQWLQXH WR FDSLWDOL]H IURP FRQIXVLRQ JDUQHUHG IURP WKH HDUOLHU
LQIULQJHPHQW ,G DW
'LVWDQFH UXOH FDQ EH LQYRNHG WR FXUWDLO KLV XVH RI
³WDXEPDQVXFNVFRP´ HYHQ LI XVH RI ³WDXEPDQVXFNVFRP´
ZRXOGQRWEHLQIULQJLQJRWKHUZLVH
,Q%URGHULFN-XGJH'HQLVRQVWDWHGWKH6DIH'LVWDQFH5XOH
DVIROORZV
>7KHGHIHQGDQWV@KDGRUJDQL]HGDQGEXLOWXSDEXVLQHVV
EDVHGXSRQDIUDXGXOHQWDSSURSULDWLRQRIZKDWEHORQJHG
WR WKH SODLQWLII 7R SHUPLW WKHP WR FRQWLQXH ZLWKRXW
LQWHUUXSWLRQDQGWRWKHIXOOVFRSHRILGHQWLW\SHUPLWWHGWR
DQKRQHVWFRPSHWLWRUZRXOGEHWRSUHVHUYHIRUWKHPD
JRRGZLOODFTXLUHGWKURXJKIUDXG7KHGXHSURWHFWLRQRI
WUDGHPDUNDQGVLPLODUULJKWVUHTXLUHVWKDWDFRPSHWLWLYH
EXVLQHVVRQFHFRQYLFWHGRIXQIDLUFRPSHWLWLRQLQDJLYHQ
SDUWLFXODUVKRXOGWKHUHDIWHUEHUHTXLUHGWRNHHSDVDIH
GLVWDQFH DZD\ IURP WKH PDUJLQ OLQH± HYHQ LI WKDW
UHTXLUHPHQWLQYROYHVDKDQGLFDSDVFRPSDUHGZLWKWKRVH
ZKRKDYHQRWGLVTXDOLILHGWKHPVHOYHV
,GDW6RLQVSLWHRI7DXEPDQ¶VDVVHUWLRQVRWKHUZLVH
WKH6DIH'LVWDQFH5XOHLVOLNHZLVHIRXQGHGRQDOLNHOLKRRGRI
FRQIXVLRQ VWDQGDUG 7KH UXOH VLPSO\ QRWHV WKDW RQFH DQ
LQIULQJHU KDV FRQIXVHG WKH SXEOLF WKDW FRQIXVLRQ LV QRW
PDJLFDOO\UHPHGLHGE\DQDPHFKDQJH,QVWHDGWKHFRQIXVLRQ
OLQJHUVFUHDWLQJWKHQHHGIRUWKHLQIULQJHUQRWRQO\WRVHFXUH
DQHZQRQLQIULQJLQJQDPH RURWKHULQIULQJLQJFKDUDFWHULVWLF
IRU KLV SURGXFW EXW RQH VR IDU UHPRYHG IURP DQ\
-- 6 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
'LVWULE&RY5HQR)G WK&LU (YHQ
VR WKH RWKHU WKUHH IDFWRUV DOVR VXJJHVW WKDW D SUHOLPLQDU\
LQMXQFWLRQ LV QRW SURSHU %HFDXVH 0LVKNRII LV QRW XVLQJ
7DXEPDQ¶VPDUNWRSHGGOHFRPSHWLQJJRRGVDQGEHFDXVHDQ\
GDPDJHVZRXOGEHHFRQRPLFLQQDWXUHDQGIXOO\FRPSHQVDEOH
PRQHWDULO\ ZH ILQG QR SRWHQWLDO IRU LUUHSDUDEOH KDUP WR
7DXEPDQWKDWVKRXOGOHDGXVWRXSKROGWKHLQMXQFWLRQV6HH
2YHUVWUHHW Y /H[LQJWRQ)D\HWWH 8UEDQ &RXQW\ *RY¶W
)G WK&LU FLWLQJ%DVLFRPSXWHU&RUSY
6FRWW)G WK&LU 0RUHRYHUDEVHQW
DOLNHOLKRRGRIFRQIXVLRQZHILQGQRQHJDWLYHLPSDFWRQWKH
SXEOLFLQWHUHVWFDXVHGE\0LVKNRII¶VXVH,QIDFWGXHWRWKH
)UHH 6SHHFK FRQFHUQV SUHVHQW ZH ILQG WKH SRWHQWLDO IRU
LUUHSDUDEOHKDUPWR0LVKNRIIPRUHOLNHO\DQGWKDWWKHSXEOLF
ZRXOG EH QHJDWLYHO\ LPSDFWHG VKRXOG ZH QRW GLVVROYH WKH
LQMXQFWLRQV6HH2YHUVWUHHW)GDW VWDWLQJWKDWWKH
SRWHQWLDO IRU LUUHSDUDEOH KDUP LV SUHVHQW ZKHQ LW LV
FRQVWLWXWLRQDO ULJKWV WKDW DUH EHLQJ HQMRLQHG VHH DOVR
&RQQHFWLRQ'LVWULE&R)GDW VWDWLQJWKDWWKHORVV
RIFRQVWLWXWLRQDOULJKWVIRUHYHQDPLQLPDODPRXQWRIWLPH
FRQVWLWXWHVLUUHSDUDEOHKDUP
/DVWO\DOWKRXJKQRHFRQRPLFKDUPZLOODFFUXHWR0LVKNRII
VKRXOGKHEHSUHYHQWHGIURPPDLQWDLQLQJKLVVLWHVWKHUHLV
OLWWOHSRWHQWLDOKDUPWR7DXEPDQRUDQ\RWKHUSDUW\DVZHOO
EHFDXVH 0LVKNRII LV QRW D FRPSHWLWRU LQ WKH PDUNHWSODFH
$FFRUGLQJO\XSRQDEDODQFLQJRIWKHIDFWRUVIRULQMXQFWLYH
UHOLHIZHGLVVROYHERWKLQMXQFWLRQV
7KH6DIH'LVWDQFH5XOH
/DVWO\7DXEPDQDUJXHVWKDWWKH6DIH'LVWDQFH5XOHDOLWWOH
XVHGWHQHWZKLFKSUHGDWHVWKH/DQKDP$FWE\QHDUO\WZHQW\
\HDUVDSSOLHVWREDU0LVKNRII¶VXVHRI7DXEPDQ¶VPDUNRQ
KLV³FRPSODLQWVLWH´7KH6DIH'LVWDQFH5XOHZDVFUHDWHGWR
SUHYHQWNQRZQLQIULQJHUVIURPXVLQJWUDGHPDUNVZKRVHXVH
E\QRQLQIULQJHUVZRXOGQRWQHFHVVDULO\EHDFWLRQDEOH6HH
%URGHULFN %DVFRP5RSH&RY0DQRII)G WK
&LU 7DXEPDQLQVLVWVWKDWVLQFH0LVKNRIIKDVLQIULQJHG
LWV PDUN RQ KLV ³VKRSVDWZLOORZEHQGFRP´ VLWH WKH 6DIH
1RV 7DXEPDQ&RY:HEIHDWVHWDO
%3URSULHW\RIWKH,QMXQFWLRQV
/LNHOLKRRGRI6XFFHVVRQWKH0HULWV
7KHOLNHOLKRRGRIVXFFHVVRI7DXEPDQ¶VFODLPUHVWVZLWK
WKHODQJXDJHRIWKH/DQKDP$FW86& ZKLFK
LPSRVHVOLDELOLW\IRULQIULQJHPHQWRIWUDGHPDUNVRQ
$Q\ SHUVRQ ZKR VKDOO ZLWKRXW WKH FRQVHQW RI WKH
UHJLVWUDQW
D XVH LQ FRPPHUFH DQ\ UHSURGXFWLRQ FRXQWHUIHLW
FRS\ RU FRORUDEOH LPLWDWLRQ RI D UHJLVWHUHG PDUN LQ
FRQQHFWLRQZLWKWKHVDOHRIIHULQJIRUVDOHGLVWULEXWLRQ
RU DGYHUWLVLQJ RI DQ\ JRRGV RU VHUYLFHV RQ RU LQ
FRQQHFWLRQ ZLWK ZKLFK VXFK XVH LV OLNHO\ WR FDXVH
FRQIXVLRQRUWRFDXVHPLVWDNHRUWRGHFHLYH
0LVKNRIISURSRVHVWKDWUHJDUGOHVVRIZKHWKHUKLVXVHRI
7DXEPDQ¶VPDUNVYLRODWHVWKH/DQKDP$FWDQ\LQMXQFWLRQ
SURKLELWLQJ KLV XVH YLRODWHV WKH &RQVWLWXWLRQ DV D SULRU
UHVWUDLQWRQKLV)LUVW$PHQGPHQWULJKWRI)UHH6SHHFK6LQFH
0LVKNRII KDV UDLVHG )UHH 6SHHFK FRQFHUQV ZH ZLOO ILUVW
H[SODLQWKHLQWHUUHODWLRQEHWZHHQWKH)LUVW$PHQGPHQWDQG
WKH/DQKDP$FW)LUVWWKLV&RXUWKDVKHOGWKDWWKH/DQKDP
$FWLVFRQVWLWXWLRQDO6HPFR,QFY$PFDVW,QF)G
WK&LU VWDWLQJWKDWUHDFKRI/DQKDP$FW
LVOLPLWHGVRDVWREHFRQVWLWXWLRQDO VHHDOVR6HYHQ8SY
&RFD&ROD&R)GQ WK&LU 7KH
/DQKDP $FW LV FRQVWLWXWLRQDO EHFDXVH LW RQO\ UHJXODWHV
FRPPHUFLDOVSHHFKZKLFKLVHQWLWOHGWRUHGXFHGSURWHFWLRQV
XQGHU WKH )LUVW $PHQGPHQW &HQWUDO +XGVRQ *DV (OHF
&RUSY3XEOLF6HUY&RPP¶QRI1HZ<RUN86
VWDWLQJWKDWUHJXODWLRQRIFRPPHUFLDOVSHHFKLV
VXEMHFWRQO\WRLQWHUPHGLDWHVFUXWLQ\ 7KXVZHPXVWILUVW
GHWHUPLQH LI 0LVKNRII¶V XVH LV FRPPHUFLDO DQG WKHUHIRUH
ZLWKLQWKHMXULVGLFWLRQRIWKH/DQKDP$FWZRUWK\RIOHVVHU
)LUVW$PHQGPHQWSURWHFWLRQV
,I0LVKNRII¶VXVHLVFRPPHUFLDOWKHQDQGRQO\WKHQGRZH
DQDO\]HKLVXVHIRUDOLNHOLKRRGRIFRQIXVLRQ,I0LVKNRII¶V
XVH LV DOVR FRQIXVLQJ WKHQ LW LV PLVOHDGLQJ FRPPHUFLDO
-- 7 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
VSHHFKDQGRXWVLGHWKH)LUVW$PHQGPHQW6HH &RQJ
5HF 2FW VWDWHPHQWRI5HS.DVWHQPHLHU
VWDWLQJWKDWRIWKH/DQKDP$FWRQO\DIIHFWVPLVOHDGLQJ
FRPPHUFLDOVSHHFK FI9D%GRI3KDUPDF\Y9D&LWL]HQV
&RQVXPHU&RXQFLO,QF86 Q
VWDWLQJWKDWPLVOHDGLQJFRPPHUFLDOVSHHFKLVQRWSURWHFWHGE\
WKH)LUVW$PHQGPHQW %RQLWR%RDWV,QFY7KXQGHU&UDIW
%RDWV ,QF 86 VWDWLQJ WKDW D
WUDGHPDUN RZQHU KDV DW EHVW D TXDVLSURSHUW\ ULJKW LQ KLV
PDUN DQG FDQ RQO\ SUHYHQW LWV XVH VR DV WR PDLQWDLQ D
FRQIXVLRQIUHHSXUFKDVLQJSXEOLF TXRWLQJ&UHVFHQW7RRO&R
Y.LOERUQ %LVKRS&R) G&LU /
+DQG-
+HQFH DV SHU WKH ODQJXDJH RI WKH /DQKDP $FW DQ\
H[SUHVVLRQHPERG\LQJWKHXVHRIDPDUNQRW³LQFRQQHFWLRQ
ZLWKWKHVDOHRUDGYHUWLVLQJRIDQ\JRRGVRUVHUYLFHV´DQG
QRWOLNHO\WRFDXVHFRQIXVLRQLVRXWVLGHWKHMXULVGLFWLRQRIWKH
/DQKDP $FW DQG QHFHVVDULO\ SURWHFWHG E\ WKH )LUVW
$PHQGPHQW$FFRUGLQJO\ZHQHHGQRWDQDO\]H0LVKNRII¶V
FRQVWLWXWLRQDO GHIHQVHV LQGHSHQGHQW RI RXU /DQKDP $FW
DQDO\VLV:LWKWKLVEDFNGURSLQPLQGZHSURFHHGWRDQDO\]H
WKHQDWXUHRIWKHWZRZHEVLWHV
D1RYHPEHU,QMXQFWLRQ²7KH
³VKRSVDWZLOORZEHQG´:HEVLWH
,QUHJDUGWRWKHILUVWZHEVLWH³VKRSVDWZLOORZEHQGFRP´
0LVKNRIIDUJXHVWKDWKLVXVHLVFRPSOHWHO\QRQFRPPHUFLDO
DQGQRWFRQIXVLQJDQGWKHUHIRUHVSHHFKHQWLWOHGWRWKHIXOO
SURWHFWLRQVRIWKH)LUVW$PHQGPHQW7DXEPDQRIIHUVWKUHH
DUJXPHQWVWKDW0LVKNRIILVXVLQJLWVQDPHFRPPHUFLDOO\WR
VHOORUDGYHUWLVHJRRGVRUVHUYLFHV)LUVW0LVKNRIIKDGDOLQN
WRDVLWHRZQHGE\+DUWOH\¶VEORXVHFRPSDQ\³VKLUWEL]FRP´
6HFRQG KH KDG D OLQN WR KLV RZQ VLWH IRU KLV ZHE GHVLJQ
FRPSDQ\:HEIHDWV7KLUG0LVKNRIIKDGDFFHSWHGD
RIIHUWRUHOLQTXLVKWKHQDPHWR7DXEPDQ
$OWKRXJK 0LVKNRII FODLPV KLV LQWHQWLRQ LQ FUHDWLQJ KLV
ZHEVLWHZDVQRQFRPPHUFLDOWKHSURSHULQTXLU\LVQRWRQHRI
LQWHQW 'DGG\¶V -XQN\ 0XVLF 6WRUHV ,QF Y %LJ 'DGG\¶V
1RV 7DXEPDQ&RY:HEIHDWVHWDO
)ROORZLQJ3ODQQHG3DUHQWKRRG7DXEPDQDUJXHVWKDWDOO
F\EHUJULSLQJVLWHVDUHSHUVHFRPPHUFLDODQG³LQFRQQHFWLRQ
ZLWKWKHVDOHRIJRRGV´+RZHYHU3ODQQHG3DUHQWKRRGDVDQ
XQSXEOLVKHG GLVWULFW FRXUW RSLQLRQ LV QRW ELQGLQJ RQ WKLV
&RXUWDQGLVQRQHWKHOHVVGLVWLQJXLVKDEOH(YHQLI0LVKNRII¶V
XVH LV FRPPHUFLDO LW PXVW VWLOO OHDG WR D OLNHOLKRRG RI
FRQIXVLRQ WR EH YLRODWLYH RI WKH /DQKDP $FW 86&
,Q3ODQQHG3DUHQWKRRGWKHGHIHQGDQWXVHGWKH
SODLQWLII¶V WUDGH QDPH DV D GRPDLQ QDPH ZLWKRXW WKH
TXDOLI\LQJPRQLNHU³VXFNV´RUDQ\RWKHUVXFKDGGHQGXPWR
LQGLFDWH WKDW WKH SODLQWLII ZDV QRW WKH SURSULHWRU RI WKH
ZHEVLWH ,Q FRQWUDVW ³WDXEPDQVXFNVFRP´ UHPRYHV DQ\
FRQIXVLRQDVWRVRXUFH:HILQGQRSRVVLELOLW\RIFRQIXVLRQ
DQGQR/DQKDP$FWYLRODWLRQ
:H ILQG WKDW 0LVKNRII¶V XVH RI 7DXEPDQ¶V PDUN LQ WKH
GRPDLQQDPH³WDXEPDQVXFNVFRP´LVSXUHO\DQH[KLELWLRQRI
)UHH 6SHHFK DQG WKH /DQKDP $FW LV QRW LQYRNHG $QG
DOWKRXJKHFRQRPLFGDPDJHPLJKWEHDQLQWHQGHGHIIHFWRI
0LVKNRII¶VH[SUHVVLRQWKH)LUVW$PHQGPHQWSURWHFWVFULWLFDO
FRPPHQWDU\ZKHQWKHUHLVQRFRQIXVLRQDVWRVRXUFHHYHQ
ZKHQLWLQYROYHVWKHFULWLFLVPRIDEXVLQHVV6XFKXVHLVQRW
VXEMHFWWRVFUXWLQ\XQGHUWKH/DQKDP$FW,QIDFW7DXEPDQ
FRQFHGHVWKDW0LVKNRIILV³IUHHWRVKRXWμ7DXEPDQ6XFNV¶
IURP WKH URRIWRSV ´ %ULHI IRU 5HVSRQGHQW DW
(VVHQWLDOO\WKLVLVZKDWKHKDVGRQHLQKLVGRPDLQQDPH7KH
URRIWRSVRIRXUSDVWKDYHHYROYHGLQWRWKHLQWHUQHWGRPDLQ
QDPHVRIRXUSUHVHQW:HILQGWKDWWKHGRPDLQQDPHLVDW\SH
RISXEOLFH[SUHVVLRQQRGLIIHUHQWLQVFRSHWKDQDELOOERDUGRU
DSXOSLWDQG0LVKNRIIKDVD)LUVW$PHQGPHQWULJKWWRH[SUHVV
KLVRSLQLRQDERXW7DXEPDQDQGDVORQJDVKLVVSHHFKLVQRW
FRPPHUFLDOO\ PLVOHDGLQJ WKH /DQKDP $FW FDQQRW EH
VXPPRQHGWRSUHYHQWLW
7KH5HPDLQLQJ,QMXQFWLYH)DFWRUV
:KHQ DV KHUH D SUHOLPLQDU\ LQMXQFWLRQ ZRXOG LQIULQJH
XSRQDFRQVWLWXWLRQDOULJKWWKHOLNHOLKRRGRIVXFFHVVRQWKH
PHULWVLVRIWHQWKHGHWHUPLQDWLYHIDFWRU'HWURLW)UHH3UHVVY
$VKFURIW )G WK &LU &RQQHFWLRQ
-- 8 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
SODFHGDK\SHUOLQNWR7DXEPDQ¶VVLWHZLWKLQWKHGLVOFDLPHU
:HILQGWKLVPHDVXUHJRHVEH\RQGHYHQZKDWZDVGRQHE\WKH
GHIHQGDQWLQ+ROLGD\,QQV7KHUHDFXVWRPHUZKRUHDFKHG
WKHGHIHQGDQW¶VKRWOLQHLQHUURUKDGWRKDQJXSDQGUHGLDOWKH
FRUUHFW+ROLGD\,QQVQXPEHU,G+HUHDPLVSODFHGFXVWRPHU
VLPSO\KDVWRFOLFNKLVPRXVHWREHUHGLUHFWHGWR7DXEPDQ¶V
VLWH0RUHRYHUOLNH+ROLGD\,QQVWKHFXVWRPHUVZKRVWXPEOH
XSRQ0LVKNRII¶VVLWHZRXOGRWKHUZLVHKDYHUHDFKHGDGHDG
DGGUHVV7KH\ZRXOGKDYHUHFHLYHGDQHUURUPHVVDJHXSRQ
W\SLQJ ³VKRSVDWZLOORZEHQGFRP´ VLPSO\ VWDWLQJ WKDW WKH
QDPH ZDV QRW D SURSHU GRPDLQ QDPH ZLWK QR PHVVDJH
UHODWLQJKRZWRDUULYHDWWKHRIILFLDOVLWH+HQFH0LVKNRII¶V
ZHEVLWH DQG LWV GLVFODLPHU DFWXDOO\ VHUYH WR UHGLUHFW ORVW
FXVWRPHUV WR 7DXEPDQ¶V VLWH WKDW PLJKW RWKHUZLVH EH ORVW
$FFRUGLQJO\ZHILQGQROLNHOLKRRGWKDWDFXVWRPHUZRXOGEH
FRQIXVHG DV WR WKH VRXUFH RI 7DXEPDQ¶V DQG 0LVKNRII¶V
UHVSHFWLYHJRRGV
E'HFHPEHU,QMXQFWLRQ²7KH³VXFNV´6LWH
,QUHJDUGWR0LVKNRII¶V³FRPSODLQWVLWH´7DXEPDQFODLPV
WKDW0LVKNRII¶VXVHLVQHFHVVDULO\³LQFRQQHFWLRQZLWKWKHVDOH
RI JRRGV´ EHFDXVH KLV LQWHQW EHKLQG WKH XVH RI WKH QDPHV
³WDXEPDQVXFNVFRP´ HW DO LV WR KDUP 7DXEPDQ
HFRQRPLFDOO\
,Q3ODQQHG3DUHQWKRRG)HG¶QRI$PHU,QFY%XFFL1R
&LY:/ 6'1<0DUFK
DII¶G1R:/ G&LU)HE
W K H G H I H Q G D Q W X V X U S H G W K H G R P D L Q Q D P H
³SODQQHGSDUHQWKRRGFRP´DQGFUHDWHGDZHEVLWHGLVSOD\LQJ
DQWLDERUWLRQ SLFWXUHV DQG SUROLIH PHVVDJHV LQ FOHDU
FRQWUDGLFWLRQRIWKHSODLQWLII¶VVWDWHGPLVVLRQ,GDW 7KH
FRXUWWKHUHIRXQGWKDWDOWKRXJKQRWVHOOLQJRUDGYHUWLVLQJDQ\
JRRGVWKHGHIHQGDQW¶VXVHRI3ODQQHG3DUHQWKRRG¶VPDUNZDV
FRPPHUFLDO EHFDXVH KH KDG XVHG SODLQWLII¶V PDUN DQG
DWWHPSWHGWRFDXVHHFRQRPLFKDUP,GDW QRWLQJWKDW
/DQKDP $FW LV DSSOLFDEOH EHFDXVH ³GHIHQGDQW¶V DFWLRQ LQ
DSSURSULDWLQJSODLQWLII¶VPDUNKDVDFRQQHFWLRQWRSODLQWLII¶V
GLVWULEXWLRQRILWVVHUYLFHV
1RV 7DXEPDQ&RY:HEIHDWVHWDO
0LVKNRII VHQW D OHWWHU WR 7DXEDPDQ¶V DWWRUQH\V RQ $XJXVW
UHIHUHQFLQJ WKH UHPRYDO RI WKH VKLUWEL]FRP OLQN DQG GHFODULQJ WKDW
0LVKNRII ³ZLOO QRW SODFH DQ\ DGYHUWLVLQJ RI DQ\ NLQG RQ WKH VLWH LQ WKH
IXWXUH´ ,W LV XQFOHDU ZKHWKHU 0LVKNRII DOVR UHPRYHG WKH :HEIHDWV OLQN
DW WKLV WLPH 7R EH FOHDU ZH DOVR ILQG WKH :HEIHDWV OLQN WR EH ³XVH LQ
FRQQHFWLRQ ZLWK WKH DGYHUWLVLQJ RI JRRGV DQG VHUYLFHV´ ZKLFK OLNHZLVH
PXVW UHPDLQ UHPRYHG WR DYRLG D ILQGLQJ RI FRPPHUFLDOLW\
)DPLO\0XVLF&HQWHU)G WK&LU ,Q
WKDWVHQVHWKH/DQKDP$FWLVDVWULFWOLDELOLW\VWDWXWH6HH
+DUG5RFN&DIp/LFHQVLQJ&RUSY&RQFHVVLRQ6HUYV,QF
)GQ WK&LU ,IFRQVXPHUVDUH
FRQIXVHGE\DQLQIULQJLQJPDUNWKHRIIHQGHU¶VPRWLYHVDUH
ODUJHO\LUUHOHYDQW:\QQ2LO&RY7KRPDV)G
WK&LU FLWLQJ/RLV6SRUWVZHDU86$,QFY
/HYL6WUDXVV &R)G G&LU :H
EHOLHYH WKH DGYHUWLVHPHQWV RQ 0LVKNRII¶V VLWH WKRXJK
H[WUHPHO\PLQLPDOFRQVWLWXWHGKLVXVHRI7DXEPDQ¶VPDUN
³LQFRQQHFWLRQZLWKWKHDGYHUWLVLQJ´RIWKHJRRGVVROGE\WKH
DGYHUWLVHUV7KLVLVSUHFLVHO\ZKDWWKH/DQKDP$FWSURKLELWV
+RZHYHU0LVKNRIIKDGDWOHDVWUHPRYHGWKHVKLUWEL]FRP
OLQN SULRU WR WKH LQMXQFWLRQ $ SUHOLPLQDU\ LQMXQFWLRQ LV
SURSHURQO\WRSUHYHQWDQRQJRLQJYLRODWLRQ6HHHJ+HFKW
&RY%RZOHV86 UHFRXQWLQJWKH
KLVWRULFDOUROHRIFRXUWVRIHTXLW\DQGVWDWLQJWKDWSXUSRVHRI
LQMXQFWLYH UHOLHI LV ³WR GHWHU QRW WR SXQLVK´ $V ORQJ DV
0LVKNRIIKDVQRFRPPHUFLDOOLQNVRQHLWKHURIKLVZHEVLWHV
LQFOXGLQJ OLQNV WR VKLUWEL]FRP :HEIHDWV RU DQ\ RWKHU
EXVLQHVVZHILQGQRXVH³LQFRQQHFWLRQZLWKWKHDGYHUWLVLQJ´
RIJRRGVDQGVHUYLFHVWRHQMRLQDQGWKH/DQKDP$FWFDQQRW
EHSURSHUO\LQYRNHG
7DXEPDQ¶VDVVHUWLRQWKDWLWVRIIHUWREX\WKHGRPDLQQDPH
³VKRSVDWZLOORZEHQGFRP´ IURP 0LVKNRII TXDOLILHV
0LVKNRII¶VXVHRIWKHPDUNDV³LQFRQQHFWLRQZLWKWKHVDOHRI
JRRGV´LVPHULWOHVV$OWKRXJKRWKHUFRXUWVKDYHKHOGWKDWD
VRFDOOHGF\EHUVTXDWWHUZKRUHJLVWHUVGRPDLQQDPHVZLWKWKH
LQWHQWWRVHOOWKHQDPHWRWKHWUDGHPDUNKROGHUXVHVWKHPDUN
³LQFRQQHFWLRQZLWKWKHVDOHRIJRRGV´WKH\KDYHDOVROLPLWHG
-- 9 of 10 --
7DXEPDQ&RY:HEIHDWVHWDO 1RV
WKHLU KROGLQJV WR VXFK LQVWDQFHV ZKHUH WKH GHIHQGDQW KDG
PDGHDKDELWDQGDEXVLQHVVRIVXFKSUDFWLFHV6HHHJ(
-*DOOR:LQHU\Y6SLGHU:HEV/WG)G WK
&LU QRWLQJ WKDW GHIHQGDQW KDG PDGH D EXVLQHVV
SUDFWLFHRIVHOOLQJGRPDLQQDPHVRQH%D\IRUQROHVVWKDQ
3DQDYLVLRQ,QW¶O/3Y7RHSSHQ)G
WK&LU
,Q 3DQDYLVLRQ WKH GHIHQGDQW 7RHSSHQ SXUFKDVHG DQG
RIIHUHGWRVHOOWKHQDPH³SDQDYLVLRQFRP´WR3DQDYLVLRQIRU
,GDW(YLGHQFHVKRZHGWKDW7RHSSHQKDG
DWWHPSWHGVLPLODUGHDOVZLWKDP\ULDGRIRWKHUFRPSDQLHV
UDQJLQJIURP'HOWD$LUOLQHVWR(GGLH%DXHU,GDW7KH
1LQWK&LUFXLWIRXQG7RHSSHQ¶VLQWHQWWRVHOOWKHGRPDLQQDPH
UHOHYDQW LQ GHWHUPLQLQJ WKDW KLV FUHDWLRQ RI WKH VLWH ZDV D
FRPPHUFLDO XVH RI 3DQDYLVLRQ¶V PDUN ,G DW ,Q
FRQWUDVW QRW RQO\ KDV 0LVKNRII QRW PDGH D SUDFWLFH RI
UHJLVWHULQJDQGVHOOLQJGRPDLQQDPHVEXWKHGLGQRWHYHQ
LQLWLDWH WKH EDUJDLQLQJ SURFHVV KHUH $OWKRXJK 7DXEPDQ¶V
FRXQVHOLQWLPDWHGDWRUDODUJXPHQWWKDW0LVKNRIIKDGLQIDFW
LQLWLDWHGWKHQHJRWLDWLRQSURFHVVFRUUHVSRQGHQFHLQWKHUHFRUG
VXSSRUWVWKHRSSRVLWHFRQFOXVLRQDQGVKRZVWKDW7DXEPDQ
ILUVWRIIHUHG0LVKNRIIWRUHOLQTXLVKWKHVLWHRQ$XJXVW
DQG0LVKNRIILQLWLDOO\DFFHSWHGLWXQGHUWKUHDWRI
OLWLJDWLRQ +HQFH WKLV FDVH LV GLVWLQJXLVKDEOH IURP
3DQDYLVLRQ 7KHUH LV QR HYLGHQFH WKDW 0LVKNRII¶V LQLWLDO
PRWLYHLQVHOHFWLQJ7DXEPDQ¶VPDUNZDVWRUHVHOOWKHQDPH
7KHUHIRUH ZH KROG KLV XVH RI WKH QDPH
³VKRSVDWZLOORZEHQGFRP´LVQRW³LQFRQQHFWLRQZLWKWKHVDOH
RIJRRGV´
(YHQ LI 0LVKNRII¶V XVH LV FRPPHUFLDO VSHHFK LH ³LQ
FRQQHFWLRQZLWKWKHVDOHRUDGYHUWLVLQJRIDQ\JRRGVRU
VHUYLFHV´DQGZLWKLQWKHMXULVGLFWLRQRIWKH/DQKDP$FWWKHUH
LV D YLRODWLRQ RQO\ LI KLV XVH DOVR FUHDWHV D OLNHOLKRRG RI
FRQIXVLRQ DPRQJ FXVWRPHUV 86&
0RUHRYHUWKHRQO\LPSRUWDQWTXHVWLRQLVZKHWKHUWKHUHLVD
OLNHOLKRRG RI FRQIXVLRQ EHWZHHQ WKH SDUWLHV¶ JRRGV RU
VHUYLFHV%LUGY3DUVRQV)G WK&LU
8QGHU /DQKDP $FW MXULVSUXGHQFH LW LV LUUHOHYDQW ZKHWKHU
1RV 7DXEPDQ&RY:HEIHDWVHWDO
,Q +ROLGD\ ,QQV WKH GHIHQGDQW GLG QRW DFWXDOO\ XVH WKH SODLQWLII¶V
WUDGHPDUN ³+ROLGD\´ EXW XVHG WKH PRVW FRPPRQ ³PLVVSHOOLQJ´ RI LW
$FFRUGLQJO\ ZH DOVR IRXQG QR LQIULQJHPHQW LQ +ROLGD\ ,QQV EHFDXVH
WKHUH ZDV QR ³XVH´ RI WKH SODLQWLII¶V PDUN
FXVWRPHUVZRXOGEHFRQIXVHGDVWRWKHRULJLQRIWKHZHEVLWHV
XQOHVV WKHUH LV FRQIXVLRQ DV WR WKH RULJLQ RI WKH UHVSHFWLYH
SURGXFWV6HHDOVR'DGG\¶V-XQN\0XVLF6WRUHV)GDW
6LQFH LWV LQFHSWLRQ 0LVKNRII KDG DOZD\V PDLQWDLQHG D
GLVFODLPHU RQ WKH ZHEVLWH LQGLFDWLQJ WKDW KLV ZDV QRW WKH
RIILFLDOZHEVLWH,Q+ROLGD\,QQV,QFY5HVHUYDWLRQ
,QF)G WK&LU ZHIRXQGWKHH[LVWHQFHRI
D GLVFODLPHU YHU\ LQIRUPDWLYH DQG KHOG WKDW WKHUH ZDV QR
OLNHOLKRRGRIFRQIXVLRQSDUWO\RQWKDWEDVLV
,Q+ROLGD\,QQVWKHSODLQWLIIKRWHOFKDLQXVHGWKHSKRQH
QXPEHU +2/,'$< IRU LWV JXHVW URRP UHVHUYDWLRQ
KRWOLQH+ROLGD\,QQVFODLPHGD/DQKDP$FWYLRODWLRQZKHQ
WKH GHIHQGDQW FRPSDQ\ D EXVLQHVV WKDW SURILWHG E\ WDNLQJ
UHVHUYDWLRQVIRUVHYHUDOKRWHOFKDLQVXVHGWKHSKRQHQXPEHU
+/,'$< ZLWKD]HURLQVWHDGRIDQ³2´ LQRUGHUWR
WDNHDGYDQWDJHRIDQ\FDOOVPLVGLDOHGE\FXVWRPHUVVHHNLQJ
+ROLGD\,QQV¶KRWOLQH:HIRXQGQR/DQKDP$FWYLRODWLRQ
SDUWO\ EHFDXVH WKH GHIHQGDQW SOD\HG DQ XQPLVWDNDEOH
GLVFODLPHUXSRQDQVZHULQJHDFKFDOOH[SODLQLQJWKDWLWZDV
XQDIILOLDWHGZLWK+ROLGD\,QQVDQGSURYLGLQJFXVWRPHUVZLWK
+ROLGD\,QQV¶FRUUHFWSKRQHQXPEHU,GDW:HIRXQG
WKDWWKHGHIHQGDQWZDVLQIDFWGLUHFWLQJEXVLQHVVWR+ROLGD\
,QQVWKDWRWKHUZLVHZRXOGKDYHEHHQORVWDQGDOWKRXJKVRPH
FDOOHUVFKRVHWRGREXVLQHVVZLWKWKHGHIHQGDQWRWKHUVKXQJ
XSDQGFDOOHG+ROLGD\,QQV+DGLWQRWEHHQIRUGHIHQGDQWV¶
VHUYLFH+ROLGD\,QQVZRXOGOLNHO\QHYHUKDYHUHFRYHUHGPDQ\
FXVWRPHUVZKRKDGPLVGLDOHG,GDW
:H ILQG WKH DQDO\VLV KHUH LQGLVWLQJXLVKDEOH IURP WKH
GLVFODLPHUDQDO\VLVLQ+ROLGD\,QQV0LVKNRIIKDVSODFHGD
FRQVSLFXRXVGLVFODLPHULQIRUPLQJFXVWRPHUVWKDWWKH\KDGQRW
UHDFKHG7DXEPDQ¶VRIILFLDOPDOOVLWH)XUWKHUPRUH0LVKNRII
-- 10 of 10 --
Connect Omnilex to search the legal corpus from your AI assistant.