7KH +RQRUDEOH -XOLD 6PLWK *LEERQV 8QLWHG 6WDWHV 'LVWULFW -XGJH IRU
WKH :HVWHUQ 'LVWULFW RI 7HQQHVVHH 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
-2+11< *5((1(
3HWLWLRQHU$SSHOODQW
Y
7(11(66(( '(3$570(17 2)
&255(&7,216
5HVSRQGHQW$SSHOOHH
;!
1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH0LGGOH'LVWULFWRI7HQQHVVHHDW1DVKYLOOH
1R²7RGG-&DPSEHOO'LVWULFW-XGJH
6XEPLWWHG-XO\
'HFLGHGDQG)LOHG6HSWHPEHU
%HIRUH6,/(5DQG*,/0$1&LUFXLW-XGJHV*,%%216
'LVWULFW-XGJH
-- 1 of 4 --
*UHHQHY7HQQHVVHH
'HS¶WRI&RUUHFWLRQV
1R
*UHHQH¶V SHWLWLRQ DOOHJHG WKDW WKH GHQLDO RI GRXEOH VHQWHQFLQJ FUHGLWV
XQGHU 7HQQHVVHH¶V FXUUHQW DQG IRUPHU VHQWHQFLQJ FUHGLW LQFHQWLYH
SURJUDPV YLRODWHG WKH ([ 3RVW )DFWR FODXVH DQG KLV GXH SURFHVV ULJKWV
86& SURYLGHV LQ UHOHYDQW SDUW
F 8QOHVV D FLUFXLW MXVWLFH RU MXGJH LVVXHV D FHUWLILFDWH RI
DSSHDODELOLW\ DQ DSSHDO PD\ QRW EH WDNHQ WR WKH FRXUW RI DSSHDOV
IURP
$ WKH ILQDO RUGHU LQ D KDEHDV FRUSXV SURFHHGLQJ LQ ZKLFK WKH
GHWHQWLRQ FRPSODLQHG RI DULVHV RXW RI SURFHVV LVVXHG E\ D 6WDWH
FRXUW RU
BBBBBBBBBBBBBBBBB
&2816(/
21%5,()'RXJODV$7UDQW.QR[YLOOH7HQQHVVHHIRU
$SSHOODQW'DYLG+)LQGOH\2)),&(2)7+($77251(<
*(1(5$/ &5,0,1$/ -867,&( ',9,6,21 1DVKYLOOH
7HQQHVVHHIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
6,/(5 &LUFXLW -XGJH 3HWLWLRQHU -RKQQ\ *UHHQH D
7HQQHVVHH VWDWH SULVRQHU ILOHG D PRWLRQ ZLWK WKLV FRXUW
VHHNLQJ WKH ULJKW WR DSSHDO QRWZLWKVWDQGLQJ WKH GLVWULFW
FRXUW¶VGHQLDORIDFHUWLILFDWHRIDSSHDODELOLW\ ³&2$´ WKH
ORZHU FRXUWV¶V VXPPDU\ MXGJPHQW IRU UHVSRQGHQW WKH
7HQQHVVHH 'HSDUWPHQW RI &RUUHFWLRQV ³7'&´ RQ KLV
SHWLWLRQIRUDZULWRIKDEHDV FRUSXVILOHGXQGHU86&
7'& GLG QRW UHVSRQG WR KLV PRWLRQ DQG LW ZDV
JUDQWHG7'&WKHQILOHGDPRWLRQWRUHFRQVLGHUDOOHJLQJWKDW
86&DQG5XOH)HGHUDO5XOHVRI$SSHOODWH
-- 2 of 4 --
*UHHQHY7HQQHVVHH
'HS¶WRI&RUUHFWLRQV
1R
XQGHUVLQFHμWKHGHWHQWLRQFRPSODLQHGRIDULVHVRXWRI
SURFHVVLVVXHGE\D6WDWHFRXUW¶´
,I D VWDWH SULVRQHU KDV EHHQ FRQYLFWHG LQ VWDWH FRXUW LV
WKHUHE\ LQFDUFHUDWHG DQG WKHQ ILOHV D SHWLWLRQ
FRPSODLQLQJ DERXW WKH FRQGLWLRQ RU FLUFXPVWDQFHV RI WKDW
LQFDUFHUDWLRQWKHQORJLFWHOOVXVWKDWWKHSHUVRQLVGHWDLQHG
EHFDXVHRIDSURFHVVLVVXHG DFRQYLFWLRQ E\D6WDWHFRXUW
:KHQLWLVFOHDUWKDWWKHGHWHQWLRQUHVXOWVIURPD6WDWHFRXUW
FRQYLFWLRQ WKH KDEHDV SHWLWLRQ DULVHV IURP WKH JHQHVLV RI
FXVWRG\²WKH6WDWHFRQYLFWLRQ
$FFRUGLQJO\ZHDJUHHZLWKWKH)LIWKDQG7HQWK&LUFXLWV¶
FRQVWUXFWLRQRIWKLVSODLQDQGEURDGODQJXDJHDQGKROGWKDWD
VWDWHSULVRQHUZKRDSSHDOVWKHUHVROXWLRQRIDSHWLWLRQ
VXFKDVLVLQYROYHGKHUHLVUHTXLUHGWRILUVWREWDLQD&2$
XQGHU F $
:H WKHUHIRUH GHFOLQH WR DGGUHVV WKH PHULWV RI *UHHQH¶V
KDEHDV FODLPV DQG *5$17 7'&¶V PRWLRQ WR UHFRQVLGHU
9$&$7(WKHRUGHUJUDQWLQJ*UHHQHOHDYHWRSURFHHGZLWKKLV
DSSHDOZLWKRXWD&2$DQG',60,66KLVDSSHDO
1R *UHHQHY7HQQHVVHH
'HS¶WRI&RUUHFWLRQV
$ FHUWLILFDWH RI DSSHDODELOLW\ PD\ LVVXH XQGHU SDUDJUDSK
RQO\ LI WKH DSSOLFDQW KDV PDGH D VXEVWDQWLDO VKRZLQJ RI WKH
GHQLDO RI D FRQVWLWXWLRQDO ULJKW
3URFHGXUHUHTXLUHWKDW*UHHQHVHFXUHD&2$LQRUGHUWRWDNH
DQDSSHDOWRWKLVFRXUW
7KH NH\ LVVXH LV ZKHWKHU D VWDWH SULVRQHU VHHNLQJ UHOLHI
XQGHUEXWQRWGLUHFWO\RULQGLUHFWO\FKDOOHQJLQJDVWDWH
FRXUW FRQYLFWLRQ RU VHQWHQFH LV UHTXLUHG WR REWDLQ D &2$
EHIRUH DSSHDOLQJ )RU WKH UHDVRQV VWDWHG KHUHDIWHU ZH
FRQFOXGHWKDWDVWDWHSULVRQHULQFDUFHUDWHGSXUVXDQWWRDVWDWH
FRQYLFWLRQZKRVHHNVKDEHDVUHOLHIXQGHUPXVWREWDLQ
D&2$EHIRUHDSSHDOLQJWRWKLVFRXUWDQGWKHUHIRUH*5$17
7'&¶V PRWLRQ WR UHFRQVLGHU 9$&$7( WKH RUGHU JUDQWLQJ
*UHHQHOHDYHWRSURFHHGZLWKRXWD&2$DQG',60,66KLV
DSSHDO
%$&.*5281'
,Q*UHHQHZDVFRQYLFWHGRIILUVWGHJUHHPXUGHUDQG
VHQWHQFHGWRVHUYHQLQHW\QLQH\HDUVLQVWDWHSULVRQ,Q
*UHHQH¶VFRXQVHOZURWHDOHWWHUWRWKH7'&DVVHUWLQJWKDWKH
ZDV HOLJLEOH IRU LPPHGLDWH UHOHDVH EHFDXVH KH KDG EHHQ
HDUQLQJVHQWHQFHFUHGLWVDWDUDWHRIGD\VSHUPRQWKVLQFH
KLVLQFDUFHUDWLRQ7KH7'&LQIRUPHGKLPWKDWKHZDVQRW
HQWLWOHG WR UHFHLYH GRXEOH FUHGLWV XQGHU 7HQQHVVHH¶V
VXFFHVVLYHVHQWHQFHUHGXFWLRQSURJUDPV*UHHQHWKHQILOHGD
SHWLWLRQIRUDGHFODUDWRU\RUGHUZLWKWKH7'&7'&GHFOLQHG
*UHHQH¶VUHTXHVWIRUWKHGHFODUDWRU\RUGHU+HWKHQUHDVVHUWHG
WKHDFWLRQLQ'DYLGVRQ&RXQW\&KDQFHU\&RXUWZKLFKJUDQWHG
VXPPDU\ MXGJPHQW WR 7'& *UHHQH DSSHDOHG DQG WKH
7HQQHVVHH &RXUW RI $SSHDOV DIILUPHG 7KH 7HQQHVVHH
6XSUHPH&RXUWGHQLHG*UHHQH¶VDSSOLFDWLRQIRUSHUPLVVLRQWR
DSSHDO
*UHHQHWKHQILOHGDSHWLWLRQIRU D ZULWRIKDEHDVFRUSXV
XQGHU86&LQWKHGLVWULFWFRXUW7KH7'&ILOHG
DPRWLRQIRUVXPPDU\MXGJPHQWDOOHJLQJWKDW*UHHQHKDG
-- 3 of 4 --
*UHHQHY7HQQHVVHH
'HS¶WRI&RUUHFWLRQV
1R
IDLOHGWRFUHDWHDQ\JHQXLQHLVVXHRIPDWHULDOIDFWDVWRKLV([
3RVW)DFWRDQGGXHSURFHVVFODLPVDQGWKDWKHKDGIDLOHGWR
PHHWWKHVWDQGDUGIRUFKDOOHQJLQJVWDWHFRXUWGHWHUPLQDWLRQV
DVUHTXLUHGE\86& G 7KHGLVWULFWFRXUWJUDQWHG
WKHPRWLRQKROGLQJWKDWQRJHQXLQHLVVXHRIPDWHULDOIDFW
H[LVWHGEXWGHFOLQLQJWRUXOHRQZKHWKHU*UHHQH¶VSHWLWLRQ
VKRXOGEHFRQVWUXHGDVILOHGXQGHU7KHGLVWULFWFRXUW
GHQLHGD&2$
',6&866,21
*UHHQHDUJXHVWKDWKHPD\DSSHDOZLWKRXWD&2$EHFDXVH
KLVSHWLWLRQFKDOOHQJHGWKHOHJDOLW\RISURFHHGLQJVRID
VWDWHDGPLQLVWUDWLYHDJHQF\7'&DQGWKXVKLVDSSHDOLVQRW
IURP³WKHILQDORUGHULQDKDEHDVFRUSXVSURFHHGLQJLQZKLFK
WKHGHWHQWLRQFRPSODLQHGRIDULVHVRXWRISURFHVVLVVXHGE\D
6WDWHFRXUW´86& F $ HPSKDVLVDGGHG
7KLVSRVLWLRQLVDUJXDEO\FRQVLVWHQWZLWK:DONHUY2¶%ULHQ
)G WK&LU DFDVHLQZKLFKWKH
FRXUWKHOGWKDWD&2$ZDVQRWQHFHVVDU\EHFDXVH³>Z@KHQD
SULVRQHU ORVHV JRRGWLPH FUHGLWV DIWHU D SULVRQ GLVFLSOLQDU\
SURFHHGLQJ WKH UHVXOWLQJ GHWHQWLRQ GRHV QRW DULVH RXW RI
SURFHVV LVVXHG E\ D VWDWH FRXUW´ 7KH RSSRVLWH UHVXOW ZDV
UHDFKHGLQ0RQWH]Y0F.LQQD)G WK&LU
ZKHUH WKH FRXUW VWDWHG ³FRQVLVWHQW ZLWK WKH SODLQ
ODQJXDJH RI F $ WKLV FRXUW KROGV WKDW D VWDWH
SULVRQHUPXVWREWDLQD&2$WRDSSHDOWKHGHQLDORIDKDEHDV
SHWLWLRQZKHWKHUVXFKSHWLWLRQZDVILOHGSXUVXDQWWR
RU ZKHQHYHU μWKH GHWHQWLRQ FRPSODLQHG RI >LQ WKH
SHWLWLRQ@DULVHVRXWRISURFHVVLVVXHGE\D6WDWHFRXUW¶´,G
FLWLQJ F $ 6WULQJHUY:LOOLDPV)G
WK&LU
3ULRUWRGHFLGLQJWKH&2$LVVXHWKH:DONHUFRXUWKHOGWKDW
)HONHU OHDGV WR WKH FRQFOXVLRQ WKDW ZKHQ D SULVRQHU
EHJLQV LQ WKH GLVWULFW FRXUW DQG DOO DVVRFLDWHG
VWDWXWRU\UHTXLUHPHQWV>LQFOXGLQJ&2$¶VXQGHULI
DSSOLFDEOH@ DSSO\ QR PDWWHU ZKDW VWDWXWRU\ ODEHO WKH
1R *UHHQHY7HQQHVVHH
'HS¶WRI&RUUHFWLRQV
SULVRQHU KDV JLYHQ WKH FDVH 5RXJKO\ VSHDNLQJ WKLV
PDNHV WKH H[FOXVLYH YHKLFOH IRU SULVRQHUV LQ
FXVWRG\SXUVXDQWWRDVWDWHFRXUWMXGJPHQWZKRZLVKWR
FKDOOHQJH DQ\WKLQJ DIIHFWLQJ WKDW FXVWRG\ EHFDXVH LW
PDNHVFOHDUWKDWEULQJLQJDQDFWLRQXQGHUZLOOQRW
SHUPLWWKHSULVRQHUWRHYDGHWKHUHTXLUHPHQWVRI
,QGHHGZHKDYHKHOGLQQXPHURXVFDVHVWKDWZDV
WKHFRUUHFWYHKLFOHIRUFRQWHVWLQJORVVRIJRRGWLPHFUHGLW
LQ SULVRQ GLVFLSOLQDU\ SURFHHGLQJV DQG ZH DGKHUH WR
WKRVHGHFLVLRQVWRGD\
,GDW UHO\LQJRQ)HONHUY7XUSLQ86
FLWDWLRQVRPLWWHG :HDJUHHZLWKWKLVSDUWRIWKH:DONHU
RSLQLRQ
7KH 0RQWH] FRXUW UHOLHG XSRQ WKH EURDG ODQJXDJH ³WKH
GHWHQWLRQ FRPSODLQHG RI DULVHV RXW RI SURFHVV LVVXHG E\ D
6WDWHFRXUW´LQ F $ WRGHWHUPLQHWKDWWKH&2$
UHTXLUHPHQWZDVJHQHUDOO\DSSOLFDEOHWRSHWLWLRQVILOHG
E\VWDWHSULVRQHUV7KHGHFLVLRQVLQ:DONHUDQG0RQWH]ZHUH
EDVHGXSRQGLIIHUHQWFRQVWUXFWLRQVRIWKLVSKUDVH
:DONHUKHOG³>L@QOLJKWRIWKHVWDWXWRU\ODQJXDJHZHGRQRW
VHHKRZZHFDQFRQVWUXHWKHZRUGVμSURFHVVLVVXHGE\D6WDWH
FRXUW¶ WR PHDQ μSURFHVV QRW LVVXHG E\ D 6WDWH FRXUW EXW
LQVWHDG WKH RXWFRPH RI DQ LQWHUQDO SULVRQ GLVFLSOLQDU\
SURFHHGLQJ¶´,GDW7KHGLIILFXOW\ZHKDYHZLWKWKLV
FRQVWUXFWLRQLVWKDWLWQDUURZVWKHSKUDVHLQ F $
WKDWJLYHVLWEUHDGWK²³DULVHVRXWRI´
$SODLQUHDGLQJQRWLQJWKHEUHDGWKFUHDWHGE\WKLVSKUDVH
ZDVWKHEDVLVIRUWKH0RQWH]FRXUW¶VUHVROXWLRQRIWKHLVVXH
DQGLVDOVRWKHSRVLWLRQRIWKH)LIWK&LUFXLW6HHLGDW
6WULQJHU Y :LOOLDPV )G WK &LU
KROGLQJ WKDW LQ WKH FRQWH[W RI D SUHWULDO GHWDLQHH ILOLQJ D
SHWLWLRQXQGHU³FOHDUO\GRHVQRWHQFRPSDVV
FKDOOHQJHVWRIHGHUDOGHWHQWLRQXQGHU-XVWDVFOHDUO\
KRZHYHUGRHVHQFRPSDVVFKDOOHQJHVWRVWDWHGHWHQWLRQ
-- 4 of 4 --