00a0258p.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
)5('(5,&. $ 3$7021
3ODLQWLII$SSHOODQW
Y
0,&+,*$1 6835(0( &2857
&215$' / 0$//(7 -5
&25%,1 5 '$9,6&OHUN
67$7( %$5 2) 0,&+,*$1
('081' 0 %5$'< -5
3UHVLGHQW$77251(<
',6&,3/,1( %2$5' )25 7+(
67$7( 2) 0,&+,*$1 0,/(6
$ +85:,7=&KDLUSHUVRQ
-2+1 ) 9$1 %2/7
0,&+,*$1 $77251(<
*5,(9$1&( &200,66,21
3+,//,3 - 7+20$6
'HIHQGDQWV$SSHOOHHV
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
1R²3DWULFN-'XJJDQ'LVWULFW-XGJH
$UJXHG-DQXDU\

-- 1 of 8 --

3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO
1R
'HFLGHGDQG)LOHG$XJXVW
%HIRUH-21(61255,6DQG6,/(5&LUFXLW-XGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('&ODUHQFH%7XFNHU6U78&.(5 +8*+(6
'HWURLW 0LFKLJDQ IRU $SSHOODQW 0DUJDUHW $ 1HOVRQ
2)),&( 2) 7+( $77251(< *(1(5$/ 7257
'()(16( ',9,6,21 /DQVLQJ 0LFKLJDQ 9LFWRULD 9
.UHPVNL67$7(%$52)0,&+,*$1/DQVLQJ0LFKLJDQ
5LFKDUG / &XQQLQJKDP 0,&+,*$1 $77251(<
*5,(9$1&( &200,66,21 'HWURLW 0LFKLJDQ IRU
$SSHOOHHV21%5,()&ODUHQFH%7XFNHU6U78&.(5
+8*+(6'HWURLW0LFKLJDQIRU$SSHOODQW0DUJDUHW$
1HOVRQ2)),&(2)7+($77251(<*(1(5$/7257
'()(16( ',9,6,21 /DQVLQJ 0LFKLJDQ 7KRPDV .
%\HUOH\67$7(%$52)0,&+,*$1/DQVLQJ0LFKLJDQ
5LFKDUG / &XQQLQJKDP 0,&+,*$1 $77251(<
*5,(9$1&( &200,66,21 'HWURLW 0LFKLJDQ IRU
$SSHOOHHV
1255,6-GHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK
6,/(5 - MRLQHG -21(6 - SS GHOLYHUHG D
VHSDUDWHRSLQLRQFRQFXUULQJLQSDUWDQGGLVVHQWLQJLQSDUW
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
$/$1(1255,6&LUFXLW-XGJH3ODLQWLII)UHGHULFN$
3DWPRQ ILOHG DQ DFWLRQ LQ GLVWULFW FRXUW XQGHU 86&
† DJDLQVW WKH 0LFKLJDQ 6XSUHPH &RXUW WKH
0LFKLJDQ $WWRUQH\ *ULHYDQFH &RPPLVVLRQ WKH $WWRUQH\
'LVFLSOLQH %RDUG WKH 6WDWH %DU RI 0LFKLJDQ DQG YDULRXV
RIILFLDOVDIILOLDWHGZLWKWKHVHHQWLWLHVLQRUGHUWRFKDOOHQJHKLV
WHPSRUDU\ VXVSHQVLRQ IURP WKH SUDFWLFH RI ODZ 3ODLQWLII

-- 2 of 8 --

3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO
1R
FKDOOHQJH WR 0LFKLJDQ¶V GLVFLSOLQDU\ UXOHV , UHVSHFWIXOO\
GLVVHQWIURPWKHPDMRULW\¶VFRQFOXVLRQRQWKDWLVVXH
1R 3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO

3ODLQWLII DOVR EDVHG KLV DSSOLFDWLRQ IRU D VWD\ RQ WKH IDFW WKDW KH ZDV
DZDLWLQJ D UXOLQJ RQ KLV DSSOLFDWLRQ IRU D ZULW RI FHUWLRUDUL LQ WKH 8QLWHG
6WDWHV 6XSUHPH &RXUW
DOOHJHGWKDWWKH0LFKLJDQVWDWXWHVDQGFRXUWUXOHVJRYHUQLQJ
WKHSUDFWLFHRIODZGHSULYHGKLPRIFHUWDLQULJKWVJXDUDQWHHG
E\ WKH IHGHUDO FRQVWLWXWLRQ DPRQJ WKHP WKH ULJKW WR GXH
SURFHVV 7KH GLVWULFW FRXUW JUDQWHG GHIHQGDQWV¶ PRWLRQ WR
GLVPLVV DQGRU IRU VXPPDU\ MXGJPHQW )RU WKH IROORZLQJ
UHDVRQVZH$)),50WKHGLVWULFWFRXUW
,
3ODLQWLIIEHJDQSUDFWLFLQJODZLQ0LFKLJDQLQ,Q
WKH 0LFKLJDQ $WWRUQH\ *ULHYDQFH &RPPLVVLRQ
³&RPPLVVLRQ´ ILOHGDFRPSODLQWDJDLQVWKLPIRUIDLOXUHWR
UHWXUQDFOLHQW¶V IXQGV2Q'HFHPEHUDKHDULQJ
SDQHODSSRLQWHGE\WKH$WWRUQH\'LVFLSOLQDU\%RDUG ³%RDUG´
IRXQGKLPJXLOW\RISURIHVVLRQDOPLVFRQGXFWDQGVXVSHQGHG
KLVOLFHQVHWRSUDFWLFHODZIRUQLQHW\GD\V3ODLQWLIIDSSHDOHG
WKLV VXVSHQVLRQ WR WKH %RDUG ZKLFK DIILUPHG WKH SDQHO¶V
GHFLVLRQRQ0D\7KH0LFKLJDQ6XSUHPH&RXUW
GHFOLQHGSODLQWLII¶VDSSOLFDWLRQIRUOHDYHWRDSSHDORQ0D\
7KHVXVSHQVLRQZKLFKKDGEHHQVWD\HGSHQGLQJWKHVH
DSSHDOVWKHQWRRNHIIHFW
3ODLQWLII FRQWLQXHG WR FRQWHVW KLV VXVSHQVLRQ KH ILOHG D
PRWLRQIRUUHFRQVLGHUDWLRQZLWKWKH0LFKLJDQ6XSUHPH&RXUW
DQGUHTXHVWHGDVWD\RIGLVFLSOLQHSHQGLQJLWVUHVROXWLRQ7KH
0LFKLJDQ 6XSUHPH &RXUW GHQLHG ERWK KLV PRWLRQ IRU
UHFRQVLGHUDWLRQDQGKLVUHTXHVWIRUDVWD\
,Q WKH ZDNH RI WKHVH SURFHHGLQJV GHIHQGDQW 3KLOOLS
7KRPDVDFWLQJLQKLVUROHDVJULHYDQFHDGPLQLVWUDWRUIRUWKH
&RPPLVVLRQ LQYHVWLJDWHG FRPSODLQWV WKDW SODLQWLII KDG
SUDFWLFHGODZGXULQJKLVVXVSHQVLRQ$VDUHVXOWWZRIRUPDO
FRPSODLQWVZHUHILOHGZLWKWKH&RPPLVVLRQ7KH\DOOHJHGWKDW
SODLQWLIIKDGFRQGXFWHGGHSRVLWLRQVZKLOHXQGHUVXVSHQVLRQ
KDGILOHGSOHDGLQJVRQEHKDOIRIDFOLHQWDQGKDGIDLOHGWR

-- 3 of 8 --

3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO
1R
$OWKRXJK SODLQWLII¶V VXVSHQVLRQ KDV UXQ LWV FRXUVH DQG KH ZDV
HOLJLEOH DV RI $SULO WR VHHN UHLQVWDWHPHQW SODLQWLII KDV QRW GRQH
VR
QRWLI\KLVFOLHQWVDQGRWKHUVWKDWKHZDVXQGHUVXVSHQVLRQDV
UHTXLUHGE\FRXUWUXOHV
7KHFRPSODLQWVZHUHUHIHUUHGWRDKHDULQJSDQHO7KHSDQHO
FRQFOXGHGWKDWVRPHRIWKHDOOHJDWLRQVORGJHGDJDLQVWSODLQWLII
ZHUHMXVWLILHGEXWWKDWRWKHUVZHUHQRW$IWHULWFRQGXFWHGD
VHSDUDWH KHDULQJ ZLWK UHVSHFW WR WKH DSSURSULDWH OHYHO RI
GLVFLSOLQH LW LVVXHG DQ RUGHU WKDW LPSRVHG D GD\
VXVSHQVLRQWRFRPPHQFHRQ2FWREHU
3ODLQWLIIRQFHDJDLQDSSHDOHGWRWKH%RDUGZKLFKDIILUPHG
WKHGD\VXVSHQVLRQHIIHFWLYH0D\3ODLQWLII
WKHQILOHGDPRWLRQIRUUHFRQVLGHUDWLRQZKLFKZDVGHQLHG
7KH0LFKLJDQ6XSUHPH&RXUWVWD\HGWKHPDWWHURQFHDJDLQ
EXWRQ6HSWHPEHUGHQLHGOHDYHWRDSSHDODQGUXOHG
WKDW WKH VXVSHQVLRQ ZRXOG JR LQWR HIIHFW DIWHU GD\V RQ
2FWREHU
3ODLQWLIIILOHGWKLVDFWLRQLQIHGHUDOGLVWULFWFRXUWRQ$SULO
DIWHUWKH VWDWHFRXUWSURFHHGLQJVZHUHFRQFOXGHG,Q
DGGLWLRQWRPRQHWDU\FRPSHQVDWLRQSODLQWLIIVHHNVGHFODUDWRU\
DQGLQMXQFWLYHUHOLHI
7KHGLVWULFWFRXUWJUDQWHGMXGJPHQWWRGHIHQGDQWVRQWZR
JURXQGV(OHYHQWK$PHQGPHQWLPPXQLW\IURPVXLWDQGWKH
KROGLQJLQ'LVWULFWRI&ROXPELD&RXUWRI$SSHDOVY)HOGPDQ
86 7KH FRXUW DOVR QRWHG LWV EHOLHI WKDW
SODLQWLIIKDGIDLOHGWRVWDWHDYLDEOHFRQVWLWXWLRQDOFODLP
7KH (OHYHQWK $PHQGPHQW FRQIHUV VRYHUHLJQ LPPXQLW\
XSRQWKHVWDWHV([FHSWLQOLPLWHGFLUFXPVWDQFHVDVWDWH RU
RQHRILWVGHSDUWPHQWVRUDJHQFLHV FDQQRWEHVXHGLQIHGHUDO
FRXUWZLWKRXWLWVFRQVHQW6HH3HQQKXUVW6WDWH6FK +RVS
Y +DOGHUPDQ 86 7KLRNRO &RUS Y
'HSDUWPHQWRI7UHDVXU\6WDWHRI0LFK5HYHQXH'LY
1R 3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO

3DWPRQ DVVHUWV LQWHU DOLD WKDW WKH UXOHV DUH LPSHUPLVVLEO\ RYHUEURDG
DQG YDJXH IDLO WR HVWDEOLVK UHDVRQDEO\ DVFHUWDLQDEOH VWDQGDUGV RI JXLOW
DQG DOORZ DJJULHYHG DWWRUQH\V WR EH GLVFLSOLQHG SULRU WR DFWXDO QRWLFH RI
WKH (IIHFWLYH 'DWH RI WKH VXVSHQVLRQ RUGHU DQG DGYHUVDU\ KHDULQJV DOO LQ
YLRODWLRQ RI WKH 'XH 3URFHVV &ODXVH RI WKH )RXUWHHQWK $PHQGPHQW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
&21&855,1*,13$57',66(17,1*,13$57
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
1$7+$1,(/5-21(6&LUFXLW-XGJHFRQFXUULQJLQSDUW
GLVVHQWLQJLQSDUW$OWKRXJK,FRQFXUZLWKWKDWSDUWRIWKH
RSLQLRQ ZKLFK DIILUPV VXPPDU\ MXGJPHQW RQ 3DWPRQ¶V
JULHYDQFHFODLPV,GLVDJUHHZLWKWKHPDMRULW\¶VFRQFOXVLRQ
WKDW WKH GLVWULFW FRXUW ODFNHG VXEMHFW PDWWHU MXULVGLFWLRQ
EHFDXVH 3DWPRQ¶V FRQVWLWXWLRQDO FKDOOHQJH WR 0LFKLJDQ¶V
UXOHVDQGSURFHGXUHVDUH³LQH[WULFDEO\LQWHUWZLQHG´ZLWKKLV
VWDWH MXGLFLDO SURFHHGLQJV $Q H[DPLQDWLRQ RI 3DWPRQ¶V
FRPSODLQWLQGLFDWHVWKDWKHDOOHJHVWKDWWKH0LFKLJDQUXOHV
YLRODWHWKH&RQVWLWXWLRQERWKIDFLDOO\DQGDVDSSOLHGWRKLP
,QSDUDJUDSKRIWKH&RPSODLQW3DWPRQFRQWHQGVWKDW
³0&5 $ ) 0&5 & 0&5
053& F 053& D DQG0&/$†DUH
XQFRQVWLWXWLRQDORQWKHLUIDFHDQGRUDVDSSOLHGWRWKHFRQGXFW
RIVXVSHQGHGDWWRUQH\VIRUOHVVWKDQGD\VLQFOXGLQJ
0U3DWPRQ´-$DW$OWKRXJK3DWPRQLQFOXGHVKLPVHOI
LQWKHJURXSRIDJJULHYHGDWWRUQH\VKHOLVWVVHYHUDOUHDVRQV
ZK\WKHUXOHVDUHXQFRQVWLWXWLRQDORQWKHLUIDFH$VWKH'&
&LUFXLW UXOHG LQ 6WDQWRQ Y 'LVWULFW RI &ROXPELD &RXUW RI
$SSHDOV)G '&&LU WKH5RRNHU)HOGPDQ
GRFWULQHGRHVQRWDSSO\WRWKLVSRUWLRQRI3DWPRQ¶V&RPSODLQW
EHFDXVH WKH FODLP FDQ ³VWDQG RQ LWV RZQ IHHW´ DV D IDFLDO
FKDOOHQJH WR 0LFKLJDQ¶V UXOHV DQG SURFHGXUHV ZLWKRXW
UHIHUHQFHWR3DWPRQ¶VSDUWLFXODUJULHYDQFHFODLPV$QWHDW
%HFDXVH WKH 5RRNHU)HOGPDQ GRFWULQH SURYLGHG WKH
GLVWULFWFRXUWVXEMHFWPDWWHUMXULVGLFWLRQRYHU3DWPRQ¶VIDFLDO

-- 4 of 8 --

3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO
1R
7KHUHIRUHWKHGLVWULFWFRXUWFRUUHFWO\GHWHUPLQHGWKDWLWODFNHG
VXEMHFWPDWWHUMXULVGLFWLRQLQWKLVFDVHDQGLWLVDIILUPHGRQ
WKDWJURXQG
%HFDXVH DSSOLFDWLRQ RI WKH 5RRNHU)HOGPDQ GRFWULQH
UHYHDOVWKDWWKHGLVWULFWFRXUW GLG QRWKDYHMXULVGLFWLRQZH
GHFOLQH WR DGGUHVV WKH (OHYHQWK $PHQGPHQW LPPXQLW\ RI
GHIHQGDQWV
,,,
7KHMXGJPHQWRIWKHGLVWULFWFRXUWLV$)),50('
1R 3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO

)G WK&LU %DVHGXSRQWKHVHSULQFLSOHV
WKH GLVWULFW FRXUW GHWHUPLQHG WKDW GHIHQGDQWV SRVVHVVHG
(OHYHQWK$PHQGPHQWLPPXQLW\IURPSODLQWLII¶VVXLW
7KHGLVWULFWFRXUWDOVRFRQFOXGHGWKDWWKH5RRNHU)HOGPDQ
GRFWULQHGLYHVWHGLWRIVXEMHFWPDWWHUMXULVGLFWLRQEHFDXVHWKH
FRPSODLQW HVVHQWLDOO\ VRXJKW UHYLHZ RI SODLQWLII¶V DWWRUQH\
JULHYDQFHSURFHHGLQJV,Q)HOGPDQVXSUD86DW
WKH 6XSUHPH &RXUW GHWHUPLQHG WKDW 86& †
SURYLGHG WKH RQO\ DYHQXH IRU IHGHUDO UHYLHZ RI VWDWH FRXUW
SURFHHGLQJV WKLVKROGLQJLVRIWHQUHIHUUHGWRDVWKH5RRNHU
)HOGPDQGRFWULQHVHHDOVR5RRNHUY)LGHOLW\7UXVW&R
86 6HFWLRQSURYLGHV
)LQDO MXGJPHQWV RU GHFUHHV UHQGHUHG E\ WKH KLJKHVW
FRXUWRID6WDWHLQZKLFKDGHFLVLRQFRXOGEHKDGPD\EH
UHYLHZHG E\ WKH 6XSUHPH &RXUW E\ ZULW RI FHUWLRUDUL
ZKHUH WKH YDOLGLW\ RI D WUHDW\ RU VWDWXWH RI WKH 8QLWHG
6WDWHV LV GUDZQ LQ TXHVWLRQ RU ZKHUH WKH YDOLGLW\ RI D
VWDWXWHRIDQ\6WDWHLVGUDZQLQTXHVWLRQRQWKHJURXQGRI
LWVEHLQJUHSXJQDQWWRWKH&RQVWLWXWLRQWUHDWLHVRUODZV
RIWKH8QLWHG6WDWHVRUZKHUHDQ\WLWOHULJKWSULYLOHJH
RU LPPXQLW\ LV VSHFLDOO\ VHW XS RU FODLPHG XQGHU WKH
&RQVWLWXWLRQ RU WKH WUHDWLHV RU VWDWXWHV RI RU DQ\
FRPPLVVLRQKHOGRUDXWKRULW\H[HUFLVHGXQGHUWKH8QLWHG
6WDWHV
86&† D 7KHGLVWULFWFRXUWFRQFOXGHGWKDW
LW ZDV ZLWKRXW MXULVGLFWLRQ WR UHYLHZ SODLQWLII¶V FRPSODLQW
EHFDXVH VXEMHFW PDWWHU MXULVGLFWLRQ ZDV OLPLWHG WR WKH
6XSUHPH&RXUWE\†,QUHDFKLQJWKLVFRQFOXVLRQWKH
FRXUWH[SODLQHG FLWDWLRQVRPLWWHG
>7@KHVWDWHSURFHHGLQJVZHUHMXGLFLDOLQQDWXUH7KHUHLV
QRGLVSXWHWKDWWKHJULHYDQFHSURFHHGLQJVXQGHUWDNHQE\
WKH>%RDUG@ZHUHDGYHUVDULDOLQQDWXUHZLWKWKHXOWLPDWH
TXHVWLRQEHLQJZKHWKHUSODLQWLIIYLRODWHGWKH0LFKLJDQ
&RXUW 5XOHV E\ SUDFWLFLQJ ODZ GXULQJ KLV VXVSHQVLRQ
7KXV LW FOHDUO\ LQYROYHG D GHWHUPLQDWLRQ RI OLDELOLWLHV

-- 5 of 8 --

3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO
1R
EDVHGRQIDFWVDQGODZH[LVWLQJDWWKHWLPH)XUWKHUPRUH
WKLVSURFHVVLQYROYHVWKHDELOLW\WRVHHNOHDYHWRDSSHDOWR
WKH0LFKLJDQ6XSUHPH&RXUW

:KLOHLWLVWUXHWKDWDIXOOUHYLHZZDVQRWJLYHQE\WKH
0LFKLJDQ 6XSUHPH &RXUW QHYHUWKHOHVV WKH SURFHVV
SHUPLWV DQ DSSHOODQW WR VHHN OHDYH WR DSSHDO WR WKH
0LFKLJDQ6XSUHPH&RXUWDQGLQWKLV&RXUW¶VRSLQLRQD
GHFLVLRQE\WKH0LFKLJDQ6XSUHPH&RXUWGHQ\LQJOHDYH
FRQVWLWXWHV MXGLFLDO UHYLHZ VXIILFLHQW WR VDWLVI\ DQ\
FRQVWLWXWLRQDOUHTXLUHPHQWRIDMXGLFLDOUHYLHZ

7KH&RXUWUHMHFWVSODLQWLII¶VFODLPUDLVHGWKURXJKRXW
KLVSOHDGLQJVDQGUHSHDWHGO\E\FRXQVHODWRUDODUJXPHQW
WKDWKHLVEULQJLQJDJHQHUDOFKDOOHQJHWRVXFKUXOHVDQG
SURFHGXUHV3ODLQWLII¶VFRPSODLQWDOOHJHVLQWHUDOLDWKDW
GHIHQGDQWVXQFRQVWLWXWLRQDOO\DSSOLHGFHUWDLQSURYLVLRQV
RI WKH 0LFKLJDQ &RXUW 5XOHV LQ WKH GLVFLSOLQDU\
SURFHHGLQJVDJDLQVWSODLQWLIIDQGGHSULYHGKLPRIKLVGXH
SURFHVV DQG HTXDO SURWHFWLRQ ULJKWV 3ODLQWLII IXUWKHU
DVVHUWVWKDWWKHDOOHJHGO\XQFRQVWLWXWLRQDOFRXUWUXOHVDQG
SUDFWLFHV ZHUH EHLQJ HQIRUFHG LQ D ZD\ WKDW YLRODWHG
SODLQWLII¶V FRQVWLWXWLRQDO ULJKWV %\ ZD\ RI UHOLHI KLV
FRPSODLQWVHHNVDPRQJRWKHUWKLQJVDGHFODUDWLRQWKDW
3DWPRQ¶VULJKWVKDYHEHHQYLRODWHGDQGWKDW3DWPRQ¶V
FRQGXFW DV D ODZ\HU LV SURWHFWHG E\ WKH 8QLWHG 6WDWHV
&RQVWLWXWLRQ 3ODLQWLII DOVR VHHNV RUGHUV UHVWRULQJ
SODLQWLII¶VOLFHQVHDQGSXUJLQJKLVGLVFLSOLQDU\UHFRUGV
6XFKDYHUPHQWVLQGLFDWHWKDWSODLQWLIILVFKDOOHQJLQJKLV
OLFHQVH VXVSHQVLRQ DQG KLV FODLPV DUH WKHUHIRUH
LQH[WULFDEO\LQWHUWZLQHGZLWKWKHJULHYDQFHSURFHVV6HH
)HOGPDQ86DW$FFRUGLQJO\SODLQWLII¶V
FODLPV DJDLQVW WKH >%RDUG@ DQG 3KLO 7KRPDV DUH
GLVPLVVHG
1R 3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO

DEVHQFHRIQRWLFHWRWKHSXEOLFLQWKHSURFHVVRIDSSRLQWLQJ
%RDUGPHPEHUVDQGFKDOOHQJ>HG@WKHXQGXO\μOLPLWHG
UHYLHZ¶SRZHUVRIWKH>&RXUW@RYHUWKH%RDUG´EHFDXVHWKH\
³VHHP>HG@SHUIHFWO\DEOHWRVWDQGRQWKHLURZQIHHWDVZRXOG
DQ\IDFLDOFKDOOHQJHWRDJHQF\UXOHV´,GDW
7KH IHGHUDO GLVWULFW FRXUWV ZLOO VWLOO ODFN VXEMHFW PDWWHU
MXULVGLFWLRQRYHUFRQVWLWXWLRQDOFKDOOHQJHVWRVWDWHUXOHVDQG
SURFHGXUHV XQGHU WKH 5RRNHU)HOGPDQ GRFWULQH KRZHYHU
ZKHUH WKH JHQHUDO FRQVWLWXWLRQDO FKDOOHQJH LV ³LQH[WULFDEO\
LQWHUWZLQHG´ZLWKVWDWHMXGLFLDOSURFHHGLQJV)HOGPDQ
86DWVHHDOVR6WDQWRQ)GDW KROGLQJWKDW
WKHFRUHRIWKHFRQVWLWXWLRQDOFKDOOHQJHPXVWEHLQGHSHQGHQW
RIWKHMXGLFLDOGHWHUPLQDWLRQWRDYRLGWKH5RRNHU)HOGPDQ
GRFWULQH $OWKRXJK SODLQWLII DUJXHV WKDW KH LV PDNLQJ D
JHQHUDOFRQVWLWXWLRQDOFKDOOHQJHDUHDGLQJRIKLVFRPSODLQW
UHYHDOVWKDWWKHFRUHRIKLVFRQVWLWXWLRQDOFODLPVLVDFKDOOHQJH
WR WKH 6WDWH RI 0LFKLJDQ¶V DSSOLFDWLRQ RI WKH UXOHV WR KLP
3ODLQWLII¶V FRPSODLQW DOOHJHV WKDW FHUWDLQ UXOHV RI SUDFWLFH
YLRODWHWKH&RQVWLWXWLRQEXWRQO\H[SODLQVKRZWKH\GLGVR
ZKHQDSSOLHGWRKLP)RUH[DPSOHSODLQWLIIDOOHJHVWKDWWKH
UXOHVYLRODWHOLEHUW\DQGSURSHUW\ULJKWVEXWWKHQGHPRQVWUDWHV
WKDWWKH\GRVRE\FRPSODLQLQJDERXWWKHORVVRIKLVUHSXWDWLRQ
DQGWKHFDSULFLRXVWDUJHWLQJRIKLVFDVH+HDUJXHVWKDWWKH
UXOHVDUHRYHUEURDGDQGWRRYDJXHEXWQHYHUVSHFLILHVLQZKDW
ZD\WKLVLVVR)XUWKHUPRUHSODLQWLIIQHYHUHYHQVSHFLILHVWKH
ODQJXDJHRIWKHUXOHVKHREMHFWVWREXWMXVWH[SODLQVKRZWKH\
DIIHFWHG KLV SURFHHGLQJV ,Q VXP DOWKRXJK KH GRHV PDNH
JHQHUDO DOOHJDWLRQV RI IDFLDO LQYDOLGLW\ WKH FRQWH[W RI
SODLQWLII¶VFRPSODLQWVKRZVWKDWKLVDUJXPHQWVFRQFHUQKRZ
WKHUXOHVZHUHDSSOLHGWRKLPDQGGRQRWWUXO\SUHVHQWDIDFLDO
FRQVWLWXWLRQDO FKDOOHQJH +LV FRQVWLWXWLRQDO FODLPV DUH
WKHUHIRUH LQH[WULFDEO\ LQWHUWZLQHG ZLWK WKH VWDWH MXGLFLDO
GHWHUPLQDWLRQVRIKLVFDVH$Q\UHYLHZRIWKHFRQVWLWXWLRQDO
FODLPVZRXOGUHTXLUHUHYLHZRIWKHVWDWHFRXUWSURFHHGLQJV
WKHUHE\YLRODWLQJWKH5RRNHU)HOGPDQGRFWULQH)XUWKHUDV
QRWHGE\WKHGLVWULFWFRXUWSODLQWLII¶VUHTXHVWHGUHPHGLHVRIDQ
LQMXQFWLRQDQGPRQHWDU\GDPDJHVZRXOGUHTXLUHWKHIHGHUDO
GLVWULFWFRXUWWRUHYLHZDSULRUVWDWHMXGLFLDOGHWHUPLQDWLRQ

-- 6 of 8 --

3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO
1R
WKLVUHJDUG86&†GRHVQRWDFWDVDEDUWRWKH
'LVWULFW&RXUW¶VFRQVLGHUDWLRQRIWKHFDVHDQGEHFDXVHWKH
SURFHHGLQJVJLYLQJULVHWRWKHUXOHDUHQRQMXGLFLDOWKH
SROLFLHVSURKLELWLQJ8QLWHG6WDWHV'LVWULFW&RXUWUHYLHZ
RIILQDOVWDWHFRXUWMXGJPHQWVDUHQRWLPSOLFDWHG8QLWHG
6WDWHV 'LVWULFW &RXUWV WKHUHIRUH KDYH VXEMHFW PDWWHU
MXULVGLFWLRQ RYHU JHQHUDO FKDOOHQJHV WR VWDWH EDU UXOHV
SURPXOJDWHGE\VWDWHFRXUWVLQQRQMXGLFLDOSURFHHGLQJV
ZKLFK GR QRW UHTXLUH UHYLHZ RI D ILQDO VWDWH FRXUW
MXGJPHQW LQ D SDUWLFXODU FDVH 7KH\ GR QRW KDYH
MXULVGLFWLRQ KRZHYHU RYHU FKDOOHQJHV WR VWDWH FRXUW
GHFLVLRQV LQ SDUWLFXODU FDVHV DULVLQJ RXW RI MXGLFLDO
SURFHHGLQJVHYHQLIWKRVHFKDOOHQJHVDOOHJHWKDWWKHVWDWH
FRXUW¶V DFWLRQ ZDV XQFRQVWLWXWLRQDO 5HYLHZ RI WKRVH
GHFLVLRQV PD\ EH KDG RQO\ LQ WKLV &RXUW 86&
†
,GDW³7KH0LFKLJDQ6XSUHPH&RXUW¶VSURPXOJDWLRQRI
UXOHVRISUDFWLFHDQGSURFHGXUHLVDOHJLVODWLYHDFWLYLW\´$OLD
Y0LFKLJDQ6XSUHPH&RXUW)G WK&LU
VHH DOVR 6WDQWRQ Y 'LVWULFW RI &ROXPELD &RXUW RI
$SSHDOV)G '&&LU ³,QSURPXOJDWLQJ
UDWKHU WKDQ DSSO\LQJ EDU UXOHV >WKH 'LVWULFW RI &ROXPELD
FRXUW@DFWVLQDOHJLVODWLYHUDWKHUWKDQDMXGLFLDOFDSDFLW\´
&HQWLIDQWLY1L[)G G&LU ³VWDWH
VXSUHPH FRXUWV PD\ DFW LQ D QRQMXGLFLDO FDSDFLW\ LQ
SURPXOJDWLQJ UXOHV UHJXODWLQJ WKH EDU´ 7KHUHIRUH LI
SODLQWLIILVFODLPLQJWKDWWKHUXOHVDWLVVXHDUHXQFRQVWLWXWLRQDO
RQWKHLUIDFHLQGHSHQGHQWO\RIDQ\FODLPFRQFHUQLQJKRZWKH\
ZHUHDSSOLHGWRKLPLQVWDWHMXGLFLDOSURFHHGLQJVWKH5RRNHU
)HOGPDQGRFWULQHGRHVQRWEDUMXULVGLFWLRQ
3ODLQWLII DUJXHV WKDW KLV ³FRPSODLQW LV D JHQHUDO
FRQVWLWXWLRQDODWWDFNRQWKHFRQVWLWXWLRQDOLW\RIWKH0LFKLJDQ
DWWRUQH\ GLVFLSOLQH VDQFWLRQ SURFHHGLQJVSURFHVV´ DQG
WKHUHIRUH WKH GLVWULFW FRXUW SRVVHVVHG MXULVGLFWLRQ RYHU WKLV
VXLW+HOLNHQVKLVFDVHWR6WDQWRQVXSUDLQZKLFKWKHFRXUW
ORRNHGWR)HOGPDQDQGFRQFOXGHGWKDWWKHGRFWULQHGLGQRW
DSSO\WRWKRVHSRUWLRQVRIWKHFRPSODLQWWKDWDWWDFNHG³WKH
1R 3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO

)LQDOO\ WKH GLVWULFW FRXUW H[SUHVVHG JUDYH GRXEWV DERXW
ZKHWKHUSODLQWLIIKDGDOOHJHGDERQDILGHFRQVWLWXWLRQDOLVVXH
7KH &RXUW KDV D VHULRXV TXHVWLRQ ZKHWKHU RU QRW
SODLQWLII LV HYHQ DVVHUWLQJ D IHGHUDO FRQVWLWXWLRQDO
TXHVWLRQ $W WKH KHDULQJ RQ WKLV PRWLRQ SHWLWLRQHU
LGHQWLILHGKLVIHGHUDOFRQVWLWXWLRQDOLVVXHDVDGHQLDORI
KLVGXHSURFHVVULJKWVEHFDXVHKHZDVQRWJLYHQDGD\
VWD\ DIWHU WKH 0LFKLJDQ 6XSUHPH &RXUW RQ 0D\
GHQLHGKLVDSSOLFDWLRQIRUOHDYHWRDSSHDO3ODLQWLII
UHFHLYHGQRWLFHRIWKLVRUGHURQRUDERXW-XQH
7KHGLVFLSOLQDU\SURFHHGLQJVWKDWDUHWKHVXEMHFWRIWKLV
ODZVXLW FKDUJHG 3DWPRQ ZLWK ³SUDFWLFLQJ ODZ´ RQ
-XQHZKLOHKLVOLFHQVHZDVVXVSHQGHG3ODLQWLII
FRQWHQGV WKDW ³GXH SURFHVV´ UHTXLUHV D ³GD\ VWD\´
IURPWKHGDWHRIWKH6XSUHPH&RXUWRUGHU3ODLQWLIIDYHUV
WKDW D GD\ VWD\ RI SURFHHGLQJV ZDV JUDQWHG E\ WKH
>%RDUG@ IROORZLQJ LWV RUGHUV RI GLVFLSOLQH DQG LI WKH
0LFKLJDQ6XSUHPH&RXUWKDGJUDQWHGDGD\VWD\LQLWV
RUGHURI0D\KLV FRQGXFWRQ-XQH
ZRXOGQRWKDYHFRQVWLWXWHGDQ\YLRODWLRQ0&5
SURYLGHVWKDW³8QOHVVRWKHUZLVHRUGHUHGE\WKH&RXUWDQ
RUGHURUMXGJPHQWLVHIIHFWLYHZKHQLWLVLVVXHG´7KH
&RXUWGRHVQRWEHOLHYHWKDWSODLQWLIIKDVDQ\³IHGHUDOO\
SURWHFWHG´ FRQVWLWXWLRQDO ULJKW WR D GD\ VWD\ RI WKH
0LFKLJDQ6XSUHPH&RXUW¶VRUGHURI0D\
3ODLQWLIIQRZDSSHDOVWKHGLVWULFWFRXUW¶VMXGJPHQWWRWKLV
FRXUW
,,
7KLVFRXUWUHYLHZVWKHGLVWULFWFRXUW¶VJUDQWRIDPRWLRQWR
GLVPLVVDQGRUIRUVXPPDU\MXGJPHQWGHQRYR6HH+DPPRQ
Y '+/ $LUZD\V ,QF )G WK &LU
6XPPDU\ MXGJPHQW LV SURSHU ZKHQ ³WKH SOHDGLQJV
GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG DGPLVVLRQV RQ
ILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZWKDWWKHUHLVQR
JHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDWWKHPRYLQJSDUW\

-- 7 of 8 --

3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO
1R
LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZ´)('5&,93
F 7KHUHLVQRJHQXLQHLVVXHRIPDWHULDOIDFWZKHQ
WKH³UHFRUGWDNHQDVDZKROHFRXOGQRWOHDGDUDWLRQDOWULHURI
IDFW WR ILQG IRU WKH QRQPRYLQJ SDUW\´ 0DWVXVKLWD (OHF
,QGXV&RY=HQLWK5DGLR&RUS86
7KHPRYLQJSDUW\VKRZVWKDWVXPPDU\MXGJPHQWLVZDUUDQWHG
E\ GHPRQVWUDWLQJ WKDW ³WKHUH LV DQ DEVHQFH RI HYLGHQFH WR
VXSSRUW WKH QRQPRYLQJ SDUW\¶V FDVH´ &HORWH[ &RUS Y
&DWUHWW86
,Q )HOGPDQ VXSUD SHWLWLRQHU DSSHDOHG WKH GHQLDO RI KLV
UHTXHVWIRUDGPLVVLRQWRWKH'LVWULFWRI&ROXPELDEDUEDVHG
XSRQLWVUXOHUHTXLULQJDSSOLFDQWVWRKDYHJUDGXDWHGIURPD
ODZ VFKRRO DSSURYHG E\ WKH $PHULFDQ %DU $VVRFLDWLRQ
3HWLWLRQHU )HOGPDQ KDG SXUVXHG KLV OHJDO HGXFDWLRQ E\
DSSUHQWLFLQJ ZLWK D SUDFWLFLQJ ODZ\HU D SDWK DSSURYHG LQ
9LUJLQLD7KHUHDIWHUKHFOHUNHGIRUDIHGHUDOGLVWULFWMXGJH
DQGSDVVHGERWKWKH0DU\ODQGDQG9LUJLQLDEDUH[DPLQDWLRQV
1RQHWKHOHVVWKH&RPPLWWHHRQ$GPLVVLRQVWRWKH'LVWULFWRI
&ROXPELD%DUUHIXVHGKLVDSSOLFDWLRQIRUPHPEHUVKLSRQWKH
JURXQG WKDW KH KDG QRW JUDGXDWHG IURP DQ DSSURYHG ODZ
VFKRRO$IWHULQLWLDOO\DSSHDOLQJWRWKH'LVWULFWRI&ROXPELD
&RXUWRI$SSHDOVZKLFKGHQLHGUHOLHISHWLWLRQHUILOHGVXLWLQ
IHGHUDOGLVWULFWFRXUWFKDOOHQJLQJWKHFRQVWLWXWLRQDOLW\RIWKH
EDUDGPLVVLRQUXOH7KHGLVWULFWFRXUWGLVPLVVHGIRUODFNRI
VXEMHFWPDWWHUMXULVGLFWLRQRQWKHWKHRU\WKDW86&†
SURYLGHGIRUDSSHDOGLUHFWO\WRWKH6XSUHPH&RXUW
7KH6XSUHPH&RXUWDIILUPHGWKHGLVWULFWFRXUW¶VGHFLVLRQWR
WKHH[WHQWWKDWSHWLWLRQHUVRXJKWUHYLHZRIWKHIDFWVRIKLVRZQ
FDVH,QUHDFKLQJLWVGHFLVLRQWKH&RXUWREVHUYHGWKDWWKHILUVW
LQTXLU\ZDVZKHWKHUWKHFKDOOHQJHGSURFHHGLQJVZHUHMXGLFLDO
LQQDWXUH)HOGPDQ86DW,IVRWKHQWKHGLVWULFW
FRXUWODFNHGVXEMHFWPDWWHUMXULVGLFWLRQSXUVXDQWWR86&
†7KH6XSUHPH&RXUWH[SODLQHGWKDW
$MXGLFLDOLQTXLU\LQYHVWLJDWHVGHFODUHVDQGHQIRUFHV
OLDELOLWLHVDVWKH\VWDQGRQSUHVHQWRUSDVWIDFWVDQGXQGHU
ODZVVXSSRVHGDOUHDG\WRH[LVW7KDWLVLWVSXUSRVHDQG
1R 3DWPRQY0LFKLJDQ6XSUHPH
&RXUWHWDO

HQG/HJLVODWLRQRQWKHRWKHUKDQGORRNVWRWKHIXWXUH
DQGFKDQJHVH[LVWLQJFRQGLWLRQVE\PDNLQJDQHZUXOHWR
EHDSSOLHGWKHUHDIWHUWRDOORUVRPHSDUWRIWKRVHVXEMHFW
WRLWVSRZHU
,GDW TXRWLQJ3UHQWLVY$WODQWLF&RDVW/LQH86
7KHGHWHUPLQDWLRQRIZKHWKHUDSURFHHGLQJ
LV MXGLFLDO RU DGPLQLVWUDWLYH WXUQV RQ WKH QDWXUH RI WKH
SURFHHGLQJUDWKHUWKDQRQWKHQDWXUHRIWKHERG\FRQGXFWLQJ
WKHSURFHHGLQJ,G
3ODLQWLII DUJXHV WKDW WKH RUGHU GHQ\LQJ OHDYH WR DSSHDO
UHQGHUHG E\ WKH 0LFKLJDQ 6XSUHPH &RXUW ³ZDV QHLWKHU D
MXGLFLDOUXOLQJRQWKHPHULWVQRUDQ\DIILUPDQFHRIWKH
>%RDUG¶V@RUGHURIGLVFLSOLQH´$VWKHGLVWULFWFRXUWSRLQWHG
RXWKRZHYHUWKH0LFKLJDQFRXUWUXOHVSUHVFULEHWKDWSDUWLHV
VHHNLQJOHDYHWRDSSHDOPXVWVHWRXWWKHLVVXHVIRUUHYLHZDQG
FRQFLVHDUJXPHQWVLQVXSSRUW,QWKLVUHVSHFWWKHSURFHGXUH
LVOLNHWKDWRISHWLWLRQLQJWKH8QLWHG6WDWHV6XSUHPH&RXUWIRU
DZULWRIFHUWLRUDULDQGZHFRQFOXGHWKDWWKH0LFKLJDQFRXUW¶V
UXOLQJ GRHV FRQVWLWXWH D MXGLFLDO GHFLVLRQ 3DWPRQ¶V VWDWH
SURFHHGLQJV FRQFHUQHG WKH DSSOLFDWLRQ RI H[LVWLQJ UXOHV
JRYHUQLQJWKHSUDFWLFHRIODZWRKLVFRQGXFWUDWKHUWKDQWKH
SURPXOJDWLRQ RI UXOHV IRU IXWXUH DSSOLFDWLRQ DQG WKHUHIRUH
ZHUHMXGLFLDOLQQDWXUH
)HOGPDQ KRZHYHU ZHQW RQ WR VWDWH WKDW D GLVWULFW FRXUW
GRHV KDYH MXULVGLFWLRQ RYHU D FODLP IDFLDOO\ DWWDFNLQJ WKH
FRQVWLWXWLRQDOLW\RIDVWDWXWHRUUXOH DEDUDGPLVVLRQUXOHLQ
)HOGPDQ ZKLFKLVWKHUHVXOWRIOHJLVODWLYHRUDGPLQLVWUDWLYH
SURFHHGLQJV
&KDOOHQJHVWRWKHFRQVWLWXWLRQDOLW\RIVWDWHEDUUXOHV
GRQRWQHFHVVDULO\UHTXLUHD8QLWHG6WDWHV'LVWULFW&RXUW
WR UHYLHZ D ILQDO VWDWH FRXUW MXGJPHQW LQ D MXGLFLDO
SURFHHGLQJ,QVWHDGWKH'LVWULFW&RXUWPD\VLPSO\EH
DVNHGWRDVVHVVWKHYDOLGLW\RIDUXOHSURPXOJDWHGLQD
QRQMXGLFLDOSURFHHGLQJ,IWKLVLVWKHFDVHWKH'LVWULFW
&RXUWLVQRWUHYLHZLQJDVWDWHFRXUWMXGLFLDOGHFLVLRQ,Q

-- 8 of 8 --