02a0426p.06

7KH +RQRUDEOH 'DYLG ' 'RZG -U 6HQLRU 8QLWHG 6WDWHV 'LVWULFW
-XGJH IRU WKH 1RUWKHUQ '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
7+(55(66$ -2/<11 5,7&+,(
3HWLWLRQHU$SSHOODQW
Y
6+,5/(< 52*(56:DUGHQ
5HVSRQGHQW$SSHOOHH
;!

1
1R
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW'D\WRQ
1R²0LFKDHO50HU]0DJLVWUDWH-XGJH
$UJXHG6HSWHPEHU
'HFLGHGDQG)LOHG'HFHPEHU
%HIRUH.(11('<DQG0225(&LUFXLW-XGJHV'2:'
6HQLRU'LVWULFW-XGJH
BBBBBBBBBBBBBBBBB
&2816(/
$5*8(' 7KHUHVD * +DLUH 38%/,& '()(1'(5¶6
2)),&(&ROXPEXV2KLRIRU$SSHOODQW06FRWW&ULVV
2 ) ) ,& ( 2) 7 + ( $ 7 7 2 5 1 ( < * ( 1 ( 5 $ /

-- 1 of 14 --

5LWFKLHY5RJHUV 1R
&255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR
IRU $SSHOOHH 21 %5,() 7KHUHVD * +DLUH 'DYLG +
%RGLNHU38%/,&'()(1'(5¶62)),&(&ROXPEXV2KLR
IRU $SSHOODQW 0 6FRWW &ULVV 2)),&( 2) 7+(
$77251(< *(1(5$/ &255(&7,216 /,7,*$7,21
6(&7,21&ROXPEXV2KLRIRU$SSHOOHH
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
,,1752'8&7,21
'2:'6HQLRU'LVWULFW-XGJH7KLVLVDQDSSHDOIURPWKH
GHQLDORISHWLWLRQHU¶VDFWLRQXQGHU86&†VHHNLQJ
KDEHDVUHOLHIIURPKHU2KLRVWDWHFRQYLFWLRQLQ0RQWJRPHU\
&RXQW\&RPPRQ3OHDV&RXUWIRUWKHPXUGHURIKHU\HDUROG
GDXJKWHU2Q-XO\SHWLWLRQHUPDGHDFDOOWR
UHSRUW KHU GDXJKWHU PLVVLQJ 7KH UHSRUW VHW RII D PDVVLYH
VHDUFKE\PDQ\YROXQWHHUVLQWKH'D\WRQFRPPXQLW\ZKHUH
SHWLWLRQHU DQG KHU GDXJKWHU OLYHG 6HYHUDO GD\V ODWHU RQ
-XO\VHDUFKGRJVGLVFRYHUHGWKHPLVVLQJGDXJKWHU¶V
ERG\LQDSRRORIZDWHULQDQHDUE\IRXQGU\,QWHQVHSXEOLFLW\
DFFRPSDQLHGWKHVHDUFKVXEVHTXHQWGLVFRYHU\RIWKHERG\
DQGWKHFKLOG¶VIXQHUDO*ULHIWXUQHGWRSXEOLFVFRUQZKHQ
DSSUR[LPDWHO\WZRZHHNVDIWHUWKHLQLWLDOUHSRUWRIWKHPLVVLQJ
FKLOG SHWLWLRQHU ZDV ILUVW FKDUJHG ZLWK LQYROXQWDU\
PDQVODXJKWHUDQGXOWLPDWHO\LQGLFWHGIRUWKHPXUGHURIKHU
FKLOG
2Q$XJXVWWKH'D\WRQ3ROLFH&KLHIDQQRXQFHGWKDW
SHWLWLRQHU KDG FRQIHVVHG WR WKH NLOOLQJ 6XEVHTXHQWO\
SHWLWLRQHU¶VER\IULHQGSOHGJXLOW\WRUHODWHGFKDUJHVDQGLWZDV
SXEOLFO\GLVFORVHGLQWKHJXLOW\SOHDFROORTX\WKDWSHWLWLRQHU
NLOOHGWKHFKLOGDIWHUWKHFKLOGZDQGHUHGLQWRWKHURRPZKHUH
SHWLWLRQHUDQGWKHER\IULHQGZHUHHQJDJHGLQVH[XDOUHODWLRQV
7KHFRQWLQXLQJSXEOLFLW\FRQFHUQLQJWKHVWRU\RIWKHFKLOG¶V
PXUGHU ZDV PDVVLYH $W WKH HQG RI 'D\WRQ 'DLO\

-- 2 of 14 --

5LWFKLHY5RJHUV 1R
$IWHUFDUHIXOUHYLHZZHILQGWKDWWKHVWDWHFRXUWV¶GHQLDORI
SHWLWLRQHU¶V PRWLRQ IRU FKDQJH RI YHQXH DQG UHMHFWLRQ RI
SHWLWLRQHU¶V REMHFWLRQV EDVHG RQ WKH LPSDFW RI SUHWULDO
SXEOLFLW\WRWKHVZLWFKIURPLQGLYLGXDOYRLUGLUHWRJURXSYRLU
GLUHQHLWKHU³UHVXOWHGLQDGHFLVLRQWKDWZDVFRQWUDU\WRRU
LQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG
)HGHUDOODZ´QRU³UHVXOWHGLQDGHFLVLRQWKDWZDVEDVHGRQDQ
XQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWV´
9&21&/86,21
)LQGLQJ QR PHULW LQ HLWKHU RI SHWLWLRQHU¶V FODLPV WKH
MXGJPHQW RI WKH GLVWULFW FRXUW GHQ\LQJ WKH ZULW RI KDEHDV
FRUSXVLV$)),50('
1R 5LWFKLHY5RJHUV
7KH MRLQW DSSHQGL[ FRQWDLQV PDQ\ FRSLHV RI QHZVSDSHU DUWLFOHV
DGGUHVVLQJ WKH VHDUFK IRU DQG GLVFRYHU\ RI 6DPDQWKD 5LWFKLH¶V ERG\ WKH
VXEVHTXHQW DUUHVW RI SHWLWLRQHU WKH DUUHVW RI SHWLWLRQHU¶V ER\IULHQG DQG KLV
DGPLVVLRQ RI JXLOW DV ZHOO DV WKH VDWXUDWLRQ RI LQWHUHVW LQ WKH HQWLUH
HSLVRGH E\ ERWK WHOHYLVRQ DQG SULQW PHGLD +RZHYHU WKH MRLQW DSSHQGL[
GLG QRW GLVFORVH WR ZKDW H[WHQW WKH PDWHULDOV WKHUHLQ KDG EHHQ EURXJKW WR
WKH DWWHQWLRQ RI WKH WULDO MXGJH $W RUDO DUJXPHQW WKH SDQHO TXHVWLRQHG
ZKDW PHGLD FRYHUDJH PDWHULDOV KDG DFWXDOO\ EHHQ VXEPLWWHG WR WKH WULDO
FRXUW LQ VXSSRUW RI WKH PRWLRQ IRU FKDQJH RI YHQXH ,Q UHVSRQVH WR WKH
SDQHO¶V TXHVWLRQV DQG GLUHFWLRQV RQ 2FWREHU SHWLWLRQHU ILOHG D
FHUWLILHG FRS\ RI WKH VXSSOHPHQWDO PHPRUDQGXP ZKLFK SHWLWLRQHU¶V WULDO
FRXQVHO KDG ILOHG RQ -DQXDU\ 7KDW VXSSOHPHQWDO PHPRUDQGXP
ZDV DFFRPSDQLHG E\ SDJHV RI H[WUDFWV IURP QHZVSDSHUV D FRS\ RI WKH
WUDQVFULSW RI 5LWFKLH¶V ER\IULHQG¶V SOHD RI JXLOW\ WR SDUWLFLSDWLQJ LQ WKH
HYHQWV WKDW OHG WR 6DPDQWKD¶V NLOOLQJ DQG VHYHUDO DUWLFOHV GHDOLQJ ZLWK
KLJKO\ SXEOLFL]HG FULPLQDO FDVHV 7KH H[WUDFWV LQFOXGHG D QXPEHU RI
UHIHUHQFHV WR WKH LQFLGHQW LQ 6RXWK &DUROLQD ZKHUH RQH 6XVDQ 6PLWK KDG
UHSRUWHG KHU FKLOGUHQ NLGQDSHG DIWHU VKH KDG FDXVHG KHU YHKLFOH WR
GLVDSSHDU LQWR D ODNH ZLWK KHU FKLOGUHQ VWUDSSHG LQVLGH 7KH WUDJLF FDVH RI
6DPDQWKD 5LWFKLH ZDV UHIHUUHG WR LQ WKH ORFDO PHGLD DV FRPSDUDEOH WR WKH
6XVDQ 6PLWK FDVH EHFDXVH OLNH 6PLWK 5LWFKLH KDG UHSRUWHG KHU FKLOG
PLVVLQJ DIWHU VKH KDG DSSDUHQWO\ NLOOHG KHU
,Q +HUULQJ WKH 2KLR WULDO FRXUW JUDQWHG D FKDQJH RI YHQXH 7KH
6WDWH DSSHDOHG DQG WKH 2KLR &RXUW RI $SSHDOV UHYHUVHG WKH RUGHU ILQGLQJ
WKDW ³LQ WKH DEVHQFH RI D FOHDU DQG PDQLIHVW VKRZLQJ E\ WKH GHIHQGDQW WKDW
SUHWULDO SXEOLFLW\ ZDV VR SHUYDVLYH DQG SUHMXGLFLDO WKDW DQ DWWHPSW WR VHDW
D MXU\ ZRXOG EH D YDLQ DFW ZH KROG WKDW LQ WKH LQWHUHVW RI MXGLFLDO
1HZVWKHSULQFLSDOQHZVSDSHULQ'D\WRQFDOOHGWKHKRPLFLGH
VWRU\WKH1XPEHUQHZVVWRU\IRUWKDWFDOHQGDU\HDU
2Q-DQXDU\MXVWVHYHQWHHQGD\VEHIRUHWKHMXU\
YRLUGLUHFRPPHQFHGSHWLWLRQHU¶VFRXQVHOVXSSOHPHQWHGDQ
LQLWLDOPRWLRQIRUFKDQJHRIYHQXH&LWLQJ6WDWHY+HUULQJ
2KLR$SSG SHWLWLRQHUZKLOHFRQFHGLQJWKDW
DFDUHIXODQGVHDUFKLQJ YRLU GLUHSURYLGHVWKHEHVWWHVWIRU
GHWHUPLQLQJ ZKHWKHU SUHMXGLFLDO SUHWULDO SXEOLFLW\ KDV
SUHYHQWHGREWDLQLQJDIDLUDQGLPSDUWLDOMXU\IURPWKHORFDOLW\
VXEPLWWHGFRQVLGHUDEOHPDWHULDOLQVXSSRUWRIKHUFODLPWKDW
WKHWULDOFRXUWVKRXOGUHYLHZWKHSUHWULDOSXEOLFLW\WRGHWHUPLQH
ZKHWKHULW³ZDVVRSHUYDVLYHDQGSUHMXGLFLDOWKDWDQDWWHPSW
WRVHDWDMXU\ZRXOGEHDYDLQDFW´7KHWULDOFRXUWGLGQRW

-- 3 of 14 --

5LWFKLHY5RJHUV 1R
HFRQRP\ FRQYHQLHQFH DQG H[SHQVH WR WKH WD[SD\HU WKDW D JRRG IDLWK
HIIRUW VKRXOG EH PDGH WR LPSDQHO D MXU\ LQ WKLV ORFDOLW\´ 2KLR $SSG
DW
UXOHRQWKHPRWLRQWRFKDQJHWKHYHQXHXQWLODIWHUDMXU\KDG
EHHQVHDWHGIROORZLQJWKHYRLUGLUH
7KHMXU\WULDOEHJDQRQ-DQXDU\DQGFRQFOXGHGRQ
)HEUXDU\ZLWKFRQYLFWLRQVRISHWLWLRQHUIRUPXUGHU
DQGDGGLWLRQDOFULPHVUHVXOWLQJLQDVHQWHQFHRI\HDUVWR
OLIH 2Q DSSHDO WKH 6HFRQG 'LVWULFW &RXUW RI $SSHDOV IRU
2KLRDIILUPHGDQGWKH2KLR6XSUHPH&RXUWGHFOLQHGDSSHOODWH
UHYLHZ
,QWKHGLVWULFWFRXUWSHWLWLRQHUVRXJKWKDEHDVUHOLHIRQWKH
FODLPWKDWKHUFRQVWLWXWLRQDOULJKWWRGXHSURFHVVZDVYLRODWHG
ILUVWE\WKHVWDWHWULDOFRXUW¶VUHIXVDOWRFKDQJHWKHYHQXHIRU
WKHWULDOEDVHGRQ³SUHVXPHGSUHMXGLFH´DQGVHFRQGE\WKH
SURFHVVE\ZKLFKWKHVXEVHTXHQWYRLUGLUHSURFHHGLQJVZHUH
FRQGXFWHG 7KH SDUWLHV FRQVHQWHG WR WKH MXULVGLFWLRQ RI D
PDJLVWUDWHMXGJHZKRRQ0D\GHQLHGWKHSHWLWLRQ
IRU D ZULW FRQFOXGLQJ WKDW ³>W@KH 2KLR &RXUW RI $SSHDOV¶
DSSOLFDWLRQ RI FRQWUROOLQJ 6XSUHPH &RXUW SUHFHGHQW WR WKH
IDFWVRIWKLVFDVHZDVREMHFWLYHO\UHDVRQDEOH´-$DW
3HWLWLRQHUDSSHDOHG
,,67$1'$5'2)5(9,(:
$ IHGHUDO FRXUW LV DXWKRUL]HG WR JUDQW D ZULW RI KDEHDV
FRUSXVWRDVWDWHSULVRQHUZKRLVKHOG³LQFXVWRG\LQYLRODWLRQ
RIWKH&RQVWLWXWLRQRUODZVRUWUHDWLHVRIWKH8QLWHG6WDWHV´
86&† D 7KLV&RXUWUHYLHZVDGLVWULFWFRXUW¶V
GHFLVLRQ LQ D KDEHDV SURFHHGLQJ GH QRYR 6HH +DUULV Y
6WRYDOO)G WK&LU
7KH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FWRI
3XE/1R 6WDW ³$('3$´
DPHQGHGIHGHUDOKDEHDVODZE\DPRQJRWKHUWKLQJVFKDQJLQJ
† G RIWKHKDEHDVVWDWXWHWRSURYLGHDVIROORZV
1R 5LWFKLHY5RJHUV
FKDQJH RI YHQXH PRWLRQV LQFOXGH 0LFKDHO -DFRE :KHOODQ 1RWH
:KDW¶V +DSSHQHG WR 'XH 3URFHVV $PRQJ WKH 6WDWHV" 3UHWULDO 3XEOLFLW\
DQG 0RWLRQV IRU &KDQJH RI 9HQXH LQ &ULPLQDO 3URFHHGLQJV $0 -
&5,0 / /HVOLH 5HQHH %HUJHU 1RWH &DQ WKH )LUVW DQG
6L[WK $PHQGPHQWV &R([LVW LQ D 0HGLD 6DWXUDWHG 6RFLHW\" 1< /
6&+ - +80 576 DQG -RDQQH $UPVWURQJ %UDQGZRRG
1RWH <RX VD\ ³)DLU 7ULDO´ DQG , 6D\ ³)UHH 3UHVV´ %ULWLVK DQG
$PHULFDQ $SSURDFKHV WR 3URWHFWLQJ 'HIHQGDQWV¶ 5LJKWV LQ +LJK 3URILOH
7ULDOV 1<8 /5HY
,QDKLJKO\SXEOLFL]HGFDVHDVWKLVFDVHZDVZKHUHWKHUHLV
DQ DEVHQFH RI ³SUHVXPHG SUHMXGLFH´ WKH WULDO FRXUW KDV D
UHVSRQVLELOLW\ WR FRQIURQW WKH IDFW RI WKH SXEOLFLW\ DQG
GHWHUPLQH LI WKH SXEOLFLW\ ULVHV WR WKH OHYHO RI ³DFWXDO
SUHMXGLFH´DQGDVHDUFKLQJYRLUGLUHRIWKHSURVSHFWLYHMXURUV
LVWKHSULPDU\WRROWRGHWHUPLQHLIWKHLPSDFWRIWKHSXEOLFLW\
ULVHVWRWKDWOHYHO7KHWULDOFRXUWPHWWKHLVVXHKHDGRQDQG
IROORZHGWKHWHDFKLQJVRI,UZLQY'RZGVXSUDZKHUHWKH
&RXUWREVHUYHG
,WLVQRWUHTXLUHGKRZHYHUWKDWWKHMXURUVEHWRWDOO\
LJQRUDQWRIWKHIDFWVDQGLVVXHVLQYROYHG,QWKHVHGD\V
RI VZLIW ZLGHVSUHDG DQG GLYHUVH PHWKRGV RI
FRPPXQLFDWLRQ DQ LPSRUWDQW FDVH FDQ EH H[SHFWHG WR
DURXVH WKH LQWHUHVW RI WKH SXEOLF LQ WKH YLFLQLW\ DQG
VFDUFHO\DQ\RIWKRVHEHVWTXDOLILHGWRVHUYHDVMXURUVZLOO
QRWKDYHIRUPHGVRPHLPSUHVVLRQRIRSLQLRQDVWRWKH
PHULWVRIWKHFDVH7KLVLVSDUWLFXODUO\WUXHLQFULPLQDO
FDVHV 7R KROG WKDW WKH PHUH H[LVWHQFH RI DQ\
SUHFRQFHLYHGQRWLRQDVWRWKHJXLOWRULQQRFHQFHRIDQ
DFFXVHG ZLWKRXW PRUH LV VXIILFLHQW WR UHEXW WKH
SUHVXPSWLRQRIDSURVSHFWLYHMXURU¶VLPSDUWLDOLW\ZRXOG
EHWRHVWDEOLVKDQLPSRVVLEOHVWDQGDUG,WLVVXIILFLHQWLI
WKHMXURUFDQOD\DVLGHKLVLPSUHVVLRQRURSLQLRQDQG
UHQGHUDYHUGLFWEDVHGXSRQWKHHYLGHQFHSUHVHQWHGLQ
FRXUW
,UZLQ86DW HPSKDVLVDGGHG
2XUUHYLHZRIDVWDWHFRXUW¶VGHFLVLRQLQDKDEHDVVHWWLQJLV
OLPLWHGE\WKHSURYLVLRQVRI86&† G DQG

-- 4 of 14 --

5LWFKLHY5RJHUV 1R
$OWKRXJK 0X¶0LQ WHDFKHV WKDW LQGLYLGXDO YRLU GLUH LV QRW D
FRQVWLWXWLRQDO UHTXLUHPHQW LQ D KLJKO\ SXEOLFL]HG FDVH ZH DUH RI WKH YLHZ
WKDW LQGLYLGXDO YRLU GLUH PLJKW ZHOO DYRLG VRPH RI WKH SUREOHPV WKDW
GHYHORS LQ D JURXS YRLU GLUH VHWWLQJ LQ SDUWLFXODU ZKHQ WKH WULDO LQYROYHV
D FKDUJH RI FDSLWDO PXUGHU 6HH HJ 6WDWH Y 6WURQJ 2KLR $SS
1(G IRU DQ H[DPSOH RI WKH SRWHQWLDO KD]DUG LQYROYHG
LQ JURXS YRLU GLUH LQ D FDSLWDO FDVH ,Q 6WURQJ GXULQJ D JURXS YRLU GLUH
VHWWLQJ LQ D FDSLWDO FDVH D SURVSHFWLYH MXURU ZKHQ TXHVWLRQHG DERXW KHU
DWWLWXGH WRZDUG FDSLWDO SXQLVKPHQW LQGLFDWHG WKDW VKH IDYRUHG FDSLWDO
SXQLVKPHQW LQ WKH FDVH DW KDQG EHFDXVH WKH GHIHQGDQW NLOOHG WZR SHUVRQV
DQG D GRJ 7KH WULDO FRXUW GHQLHG WKH PRWLRQ WR VWULNH WKH HQWLUH MXU\
YHQLUH ZKLFK LQ 2KLR ZRXOG KDYH FRQVWLWXWHG MXURUV VSHFLDOO\ GUDZQ
IRU WKH FDVH EHFDXVH RI WKH SURVSHFWLYH MXURU¶V FRPPHQW 7KH VXEVHTXHQW
FDSLWDO YHUGLFW ZDV VHW DVLGH EHFDXVH WKH WULDO FRXUW UHIXVHG WR VWULNH WKH
HQWLUH MXU\ YHQLUH
,W DOVR UHMHFWHG WKH SHWLWLRQHU¶V UHOLDQFH RQ WKH 6WDQGDUGV IRU
&ULPLQDO -XVWLFH SURPXOJDWHG E\ WKH $PHULFDQ %DU $VVRFLDWLRQ ZKLFK
UHTXLUH LQGLYLGXDO YRLU GLUH ³>L@I WKHUH LV D VXEVWDQWLDO SRVVLELOLW\ WKDW
LQGLYLGXDO MXURUV ZLOO EH LQHOLJLEOH WR VHUYH EHFDXVH RI H[SRVXUH WR
SRWHQWLDOO\ SUHMXGLFLDO PDWHULDO´ ,G DW
5HFHQW DUWLFOHV DGGUHVVLQJ IDLU WULDOV DQG D IUHH SUHVV LQ WKH FRQWH[W RI
FHQWHU8VLQJDVKDUSLQVWUXPHQWWKDWKHKDGIDVKLRQHGDW
WKH9'27VKRS0X¶0LQPXUGHUHGDQGUREEHG*ODG\V
1RSZDVN\WKHRZQHURIDUHWDLOFDUSHWDQGIORRULQJVWRUH
0X¶0LQ WKHQ UHWXUQHG WR KLV SULVRQ ZRUN FUHZ DW WKH
9'27 GLVFDUGLQJ KLV EORRGLHG VKLUW DQG WKH PXUGHU
ZHDSRQQHDUWKHKLJKZD\
0X¶0LQ86DW
$IWHU DFNQRZOHGJLQJ WKDW FDVHV GHDOLQJ ZLWK WKH
UHTXLUHPHQWVRIYRLUGLUHDUHRIWZRNLQGVQDPHO\³WKRVHWKDW
ZHUH WULHG LQ IHGHUDO FRXUWV DQG WKHUHIRUH VXEMHFW WR WKLV
&RXUW¶VVXSHUYLVRU\SRZHU´DQG³DQGWKRVHWKDWZHUHWULHGLQ
VWDWHFRXUWVZLWKUHVSHFWWRZKLFKRXUDXWKRULW\LVOLPLWHGWR
HQIRUFLQJWKHFRPPDQGVRIWKH8QLWHG6WDWHV&RQVWLWXWLRQ´
86 DW WKH PDMRULW\ IRXQG QR HUURU LQ WKH WULDO
FRXUW¶VGHQLDORILQGLYLGXDOYRLUGLUHDQGDSSURYHGRIWKH
WULDO FRXUW¶V UHIXVDO WR DOORZ SURVSHFWLYH MXURUV WR EH
TXHVWLRQHGDERXWVSHFLILFFRQWHQWVRIQHZVUHSRUWV
1R 5LWFKLHY5RJHUV
G $Q DSSOLFDWLRQ IRU D ZULW RI KDEHDV FRUSXV RQ
EHKDOIRIDSHUVRQLQFXVWRG\SXUVXDQWWRWKHMXGJPHQWRI
D 6WDWH FRXUW VKDOO QRW EH JUDQWHG ZLWK UHVSHFW WR DQ\
FODLPWKDWZDVDGMXGLFDWHGRQWKHPHULWVLQ6WDWHFRXUW
SURFHHGLQJVXQOHVVWKHDGMXGLFDWLRQRIWKHFODLP±
UHVXOWHGLQDGHFLVLRQWKDWZDVFRQWUDU\WRRU
LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\
HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH
6XSUHPH&RXUWRIWKH8QLWHG6WDWHVRU
UHVXOWHGLQDGHFLVLRQWKDWZDVEDVHGRQDQ
XQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRI
WKHHYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ
86&† G 7KXVWKHUROHRIIHGHUDOFRXUWVLQWKH
FRQWH[WRIKDEHDVUHYLHZKDVEHHQVLJQLILFDQWO\PRGLILHG
,Q6WDOH\Y-RQHV)G WK&LU WKH
6L[WK&LUFXLWQRWHG
,Q:LOOLDPVY7D\ORU866&W
/(GG WKH6XSUHPH&RXUWH[SODLQHG
WKHSURSHUDSSOLFDWLRQRI† G 7KH&RXUWKHOG
WKDWDGHFLVLRQRIDVWDWHFRXUWLV³FRQWUDU\WR´FOHDUO\
HVWDEOLVKHG IHGHUDO ODZ ³LI WKH VWDWH FRXUW DUULYHV DW D
FRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\WKLV&RXUWRQD
TXHVWLRQ RI ODZ RU LI WKH VWDWH FRXUW GHFLGHV D FDVH
GLIIHUHQWO\ WKDQ WKLV &RXUW KDV RQ D VHW RI PDWHULDOO\
LQGLVWLQJXLVKDEOH IDFWV´ ,G 6&W DW 7KH
&RXUWDOVRKHOGWKDWDQ³XQUHDVRQDEOHDSSOLFDWLRQ´RFFXUV
ZKHQ³WKHVWDWHFRXUWLGHQWLILHVWKHFRUUHFWOHJDOSULQFLSOH
IURPWKLV&RXUW¶VGHFLVLRQVEXWXQUHDVRQDEO\DSSOLHVWKDW
SULQFLSOHWRWKHIDFWVRIWKHSULVRQHU¶VFDVH´,G$VWDWH
DGMXGLFDWLRQLQQRW³XQUHDVRQDEOH´³VLPSO\EHFDXVH>WKH
IHGHUDO@FRXUWFRQFOXGHVLQLWVLQGHSHQGHQWMXGJPHQWWKDW
WKH UHOHYDQW VWDWHFRXUW GHFLVLRQ DSSOLHG FOHDUO\
HVWDEOLVKHGIHGHUDOODZHUURQHRXVO\RULQFRUUHFWO\´,G
DW

-- 5 of 14 --

5LWFKLHY5RJHUV 1R
$V SRLQWHG RXW E\ WKH 6WDOH\ FRXUW DQG DV ZH GLVFXVV LQIUD WKH
³GHEDWDEOH DPRQJ UHDVRQDEOH MXULVWV´ VWDQGDUG DGRSWHG E\ 1HYHUV
)G DW DQG 0DXULQR Y -RKQVRQ )G WK &LU
KDV EHHQ H[SUHVVO\ GLVDYRZHG E\ WKH 6XSUHPH &RXUW 6HH
:LOOLDPV Y 7D\ORU 86 +DUULV Y 6WRYDOO
)G WK &LU +RZHYHU ZH DUH UHO\LQJ RQ 1HYHUV
QRW IRU LWV VWDQGDUG RI UHYLHZ EXW IRU LWV GLVFXVVLRQ RI WKH ODZ UHODWLQJ WR
SUHWULDO SXEOLFLW\
0XUSK\ D KDEHDV FRUSXV FDVH OLNH RXUV DURVH LQ WKH 6RXWKHUQ
'LVWULFW RI )ORULGD $V LQGLFDWHG LQ WKH RSLQLRQ WKH SHWLWLRQHU UHOLHG
SULQFLSDOO\ RQ WKH DERYHUHIHUHQFHG WULORJ\ RI FDVHV DQG DOVR RQ (VWHV Y
7H[DV 86 7KH PDMRULW\ RSLQLRQ LQ 0XUSK\ GHVFULEHG
WKRVH IRXU FDVHV DV ³VWDWHFRXUW FRQYLFWLRQ>V@ REWDLQHG LQ D WULDO
DWPRVSKHUH WKDW KDG EHHQ XWWHUO\ FRUUXSWHG E\ SUHVV FRYHUDJH´ 86
DW ,Q FRQFOXVLRQ -XVWLFH 0DUVKDOO ZULWLQJ IRU WKH PDMRULW\ VWDWHG
³,Q VXP ZH DUH XQDEOH WR FRQFOXGH LQ WKH FLUFXPVWDQFHV SUHVHQWHG LQ WKLV
FDVH WKDW SHWLWLRQHU GLG QRW UHFHLYH D IDLU WULDO 3HWLWLRQHU KDV IDLOHG WR
,,, ',' 7+( 0$7(5,$/6 68%0,77(' %< 7+(
3(7,7,21(5,168332572)$027,21)25
&+$1*( 2) 9(18( '(021675$7(
³35(680('35(-8',&(´"
2XUUHFHQWGHFLVLRQLQ1HYHUVY.LOOLQJHU)G
WK &LU WHDFKHV LQ WKH FRQWH[W RI 86&
† G ³WKDWWKHUHLVFOHDUO\HVWDEOLVKHG6XSUHPH&RXUW
SUHFHGHQWGLVWLQJXLVKLQJEHWZHHQFDVHVLQYROYLQJSUHVXPHG
SUHMXGLFHZKHQ WKH μVHWWLQJ RI WKH WULDO >LV@ LQKHUHQWO\
SUHMXGLFLDO¶DQGDFWXDOSUHMXGLFHZKHQUHYLHZRIERWKWKH
MXU\ YRLU GLUH WHVWLPRQ\ DQG WKH H[WHQW DQG QDWXUH RI WKH
PHGLDFRYHUDJHLQGLFDWHVμDIDLUWULDO>ZDV@LPSRVVLEOH¶´,G
DW TXRWLQJ 0XUSK\ Y )ORULGD 86

7KH ZHOONQRZQ WULORJ\ RI ³SUHVXPHG SUHMXGLFH´ FDVHV
LQFOXGHV ,UZLQ Y 'RZG 86 5LGHDX Y
/RXLVLDQD86 DQG6KHSSDUGY0D[ZHOO
86 7KHRSLQLRQVLQWKLVWULORJ\GLGQRW
VHSDUDWHRULGHQWLI\WKHWZRFRQFHSWVRI³SUHVXPHGSUHMXGLFH´
DQG ³DFWXDO SUHMXGLFH´ 5DWKHU WKDW GLVWLQFWLRQ ZDV ILUVW
LGHQWLILHGLQ0XUSK\Y)ORULGD86
1R 5LWFKLHY5RJHUV
EDVHGRQWKHHYLGHQFHQRDEXVHRIGLVFUHWLRQLVVKRZQ
,G
:HFDQQRWVD\WKDWWKHIDFWWKDWWKHWULDOFRXUWDOORZHG
JURXSTXHVWLRQLQJRIWKH&DWHJRU\7KUHHDQG)RXUMXURUV
ZDVXQUHDVRQDEOHRUDQDEXVHRIGLVFUHWLRQ1RUGRZH
ILQGSHUVXDVLYHWKHDUJXPHQWWKDWJURXSYRLUGLUHRIWKRVH
MXURUVFRQWDPLQDWHGWKHSRRO%DVHGXSRQWKHUHFRUGZH
FRQFOXGHWKDW5LWFKLH¶VULJKWWRDPHDQLQJIXOYRLUGLUH
ZDVSUHVHUYHGDQGWKDWQRSUHMXGLFHRFFXUUHGE\UHDVRQ
RIWKHPHWKRGFKRVHQE\WKHWULDOFRXUWIRUFRQGXFWLQJ
YRLUGLUH
-$DW
7KH 2KLR &RXUW RI $SSHDOV¶ UHIHUHQFH WR 0X¶0LQ Y
9LUJLQLD86 UHTXLUHVIXUWKHUGLVFXVVLRQLQ
WKH FRQWH[W RI KLJKO\ SXEOLFL]HG FDVHV 7KH 0X¶0LQ FDVH
SUHVHQWHGWKHLVVXHRIZKHWKHUWKHSHWLWLRQHU¶VFODLPWKDWKLV
6L[WK $PHQGPHQW ULJKW WR DQ LPSDUWLDO MXU\ DQG KLV
)RXUWHHQWK$PHQGPHQWULJKWWRGXHSURFHVVZHUHYLRODWHG
ZKHQWKHWULDOMXGJHUHIXVHGWRTXHVWLRQSURVSHFWLYHMXURUV
DERXWVSHFLILFFRQWHQWVRIQHZVUHSRUWVWRZKLFKWKHMXURUV
KDG EHHQ H[SRVHG 7KH WULDO MXGJH GHQLHG WKH SHWLWLRQHU¶V
PRWLRQIRULQGLYLGXDOYRLUGLUHDQGUHIXVHGWKHSHWLWLRQHU¶V
UHTXHVWWRDVNDQ\RIKLVSURSRVHGTXHVWLRQVUHODWLQJWRWKH
FRQWHQW RI QHZV LWHPV WKDW WKH SRWHQWLDO MXURUV PLJKW KDYH
VHHQRUUHDG
&KLHI-XVWLFH5HKQTXLVWZULWLQJIRUWKHPDMRULW\RIILYH
MXVWLFHVGHVFULEHGWKHVHWWLQJDVIROORZV
0X¶0LQZDVDQLQPDWHDWWKH9LUJLQLD'HSDUWPHQWRI
&RUUHFWLRQV¶+D\PDUNHW&RUUHFWLRQDO8QLWVHUYLQJD
\HDUVHQWHQFHIRUDILUVWGHJUHHPXUGHUFRQYLFWLRQ
2Q 6HSWHPEHU KH ZDV WUDQVIHUUHG WR WKH
9LUJLQLD 'HSDUWPHQW RI 7UDQVSRUWDWLRQ 9'27
+HDGTXDUWHUVLQ3ULQFH:LOOLDP&RXQW\DQGDVVLJQHGWR
DZRUNGHWDLOVXSHUYLVHGE\D9'27HPSOR\HH'XULQJ
KLVOXQFKEUHDNKHHVFDSHGRYHUDSHULPHWHUIHQFHDWWKH
9'27IDFLOLW\DQGPDGHKLVZD\WRDQHDUE\VKRSSLQJ

-- 6 of 14 --

5LWFKLHY5RJHUV 1R
$ 7KH FDVH ZDV DOVR WDONHG DERXW DW ZRUN EXW QRW LQ GHWDLO ,W ZDV
PRUH OLNH GLG \RX KHDU DERXW WKH FKLOG EHLQJ PLVVLQJ"
$IWHUZDUGV LW ZDV GLG \RX KHDU WKHUH ZDV DQ DUUHVW" 7KDW¶V
DERXW WKH DPRXQW RI WDONLQJ WKDW , ZDV LQYROYHG LQ DW ZRUN
4 2ND\ $Q\WKLQJ HOVH WKDW \RX UHFDOO WKDW \RX VDZ RQ 79 DERXW
WKH GHIHQGDQW RU WKDW \RX KHDUG RU UHDG DQ\WKLQJ VSHFLILFDOO\"
$ 0RVW RI PLQH ZDV EHIRUH WKH FKLOG ZDV IRXQG
4 <RX KDYH QR RSLQLRQ WKHQ DW WKLV WLPH"
$ 1R , FDQ¶W VD\ WKDW , GRQ¶W ,¶G VD\ , GRQ¶W KDYH DQ RSLQLRQ
4 7KDQN \RX
$ 6RUU\
4 7KDW¶V QRW D SUREOHP
-$ DW
,QUHVSRQVHWRWKHLVVXHRIWKHVZLWFKIURPLQGLYLGXDOWR
JURXS YRLU GLUH WKH 2KLR &RXUW RI $SSHDOV LQ VXPPDU\
GHFODUHG
:HFDQQRWFRQFOXGHWKDW5LWFKLHZDVSUHMXGLFHGE\WKH
WULDOFRXUW¶VGHFLVLRQWRFRQGXFWJURXS YRLUGLUH7KH
2KLR 6XSUHPH &RXUW KDV KHOG WKDW ³QHLWKHU 2KLR QRU
IHGHUDOODZUHTXLUHVLQGLYLGXDOYRLUGLUH7KDWLVVXHLV
ZLWKLQ WKH GLVFUHWLRQ RI WKH WULDO MXGJH´ 6WDWH Y
/DQGUXP 2KLR6WG1(G
7KLV FRXUW KDV DOVR IRXQG JURXS YRLU GLUH
DFFHSWDEOH ZH KDYH KHOG WKDW WKH ³GHVLUH WR FRQVHUYH
WLPH DQG MXGLFLDO UHVRXUFHV LV D UHDVRQDEOH EDVLV IRU
TXHVWLRQLQJMXURUVHQPDVVH´6WDWHY&KLQQ 'HF
0RQWJRPHU\$SS1RXQUHSRUWHGFLWLQJ
6WDWH Y %URZQ 2KLR 6W G
1(GFHUWLRUDULGHQLHG 86
6&W/(GG$FULPLQDOGHIHQGDQW
KDVQRFRQVWLWXWLRQDOULJKWWRTXHVWLRQSURVSHFWLYHMXURUV
LQGLYLGXDOO\DVWRWKHFRQWHQWRIQHZVUHSRUWVWRZKLFK
WKH\KDYHEHHQH[SRVHG0X¶0LQY9LUJLQLD
86/(GG6&W6RORQJDV
WKHWULDOFRXUWLVVDWLVILHGWKDWSURVSHFWLYHMXURUVFDQVHW
DVLGHWKHFRQWHQWRIQHZVUHSRUWVDQGUHQGHUDIDLUYHUGLFW
1R 5LWFKLHY5RJHUV
VKRZ WKDW WKH VHWWLQJ RI WKH WULDO ZDV LQKHUHQWO\ SUHMXGLFLDO RU WKDW WKH
MXU\VHOHFWLRQ SURFHVV RI ZKLFK KH FRPSODLQV SHUPLWV DQ LQIHUHQFH RI
DFWXDO SUHMXGLFH´ ,G DW HPSKDVHV DGGHG
'REEHUW ZDV FRQYLFWHG RI PXUGHU LQ WKH ILUVW GHJUHH PXUGHU LQ WKH
VHFRQG GHJUHH FKLOG DEXVH DQG FKLOG WRUWXUH 7KH YLFWLPV ZHUH KLV
FKLOGUHQ
-XVWWZR\HDUVODWHULQ'REEHUWY)ORULGD86
$VVRFLDWH-XVWLFH5HKQTXLVWUHO\LQJRQ0XUSK\DQGZULWLQJ
IRUWKHPDMRULW\RSLQHG
7KHUHZDVXQGHUVWDQGDEO\H[WHQVLYHSUHWULDOSXEOLFLW\
FRQFHUQLQJ VHYHUDO DVSHFWV RI WKLV FDVH :H DFFHSW
SHWLWLRQHU¶VDVVHUWLRQWKDWWKHUHZDVVXEVWDQWLDOPHGLD
FRYHUDJH LQFOXGLQJ D QXPEHU RI WHOHYLVLRQ DQG UDGLR
VWRULHVUHJDUGLQJWKHYDULRXVDVSHFWVRIWKHFDVH

3HWLWLRQHU¶VDUJXPHQWWKDWWKHH[WHQVLYHFRYHUDJHE\
WKH PHGLD GHQLHG KLP D IDLU WULDO UHVWV DOPRVW HQWLUHO\
XSRQWKHTXDQWXPRISXEOLFLW\ZKLFKWKHHYHQWVUHFHLYHG
+HKDVGLUHFWHGXVWRQRVSHFLILFSRUWLRQVRIWKHUHFRUG
LQ SDUWLFXODU WKH YRLU GLUH H[DPLQDWLRQ RI WKH MXURUV
ZKLFK ZRXOG UHTXLUH D ILQGLQJ RI FRQVWLWXWLRQDO
XQIDLUQHVVDVWRWKHPHWKRGRIMXU\VHOHFWLRQRUDVWRWKH
FKDUDFWHU RI WKH MXURUV DFWXDOO\ VHOHFWHG %XW XQGHU
0XUSK\H[WHQVLYHNQRZOHGJHLQWKHFRPPXQLW\RIHLWKHU
WKHFULPHVRUWKHSXWDWLYHFULPLQDOLVQRWVXIILFLHQWE\
LWVHOIWRUHQGHUDWULDOFRQVWLWXWLRQDOO\XQIDLU3HWLWLRQHU
LQWKLVFDVHKDVVLPSO\VKRZQWKDWWKHFRPPXQLW\ZDV
PDGHZHOODZDUHRIWKHFKDUJHVDJDLQVWKLPDQGDVNVXV
RQ WKDW EDVLV WR SUHVXPH XQIDLUQHVV RI FRQVWLWXWLRQDO
PDJQLWXGHDWKLVWULDO7KLVZHZLOOQRWGRLQWKHDEVHQFH
RI D ³WULDO DWPRVSKHUH XWWHUO\ FRUUXSWHG E\ SUHVV
FRYHUDJH´0XUSK\Y)ORULGDVXSUDDW2QHZKR
LVUHDVRQDEO\VXVSHFWHGRIPXUGHULQJKLVFKLOGUHQFDQQRW
H[SHFWWRUHPDLQDQRQ\PRXV

-- 7 of 14 --

5LWFKLHY5RJHUV 1R
-XVWLFH 0DUVKDOO GLG QRW SDUWLFLSDWH
-XVWLFH 6WHYHQV¶ GLVVHQW VKHGV DGGLWLRQDO OLJKW RQ WKH UHFRUG EHIRUH
WKH 6XSUHPH &RXUW DV KH VWDWHG LQ UHOHYDQW SDUW
7KH WRWDOLW\ RI WKHVH FLUFXPVWDQFHV FRQYLQFHV PH WKDW WKH
WULDO MXGJH FRPPLWWHG PDQLIHVW HUURU LQ GHWHUPLQLQJ WKDW WKH MXU\
DV D ZKROH ZDV LPSDUWLDO 7KH WULDO MXGJH¶V FRPPHQW WKDW WKHUH
ZDV OLWWOH WDON LQ SXEOLF DERXW WKH VHFRQG WULDO LV SODLQO\
LQFRQVLVWHQW ZLWK WKH HYLGHQFH DGGXFHG GXULQJ WKH YRLU GLUH
6LPLODUO\ WKH WULDO FRXUW¶V VWDWHPHQW WKDW ³WKHUH ZDV SUDFWLFDOO\
QR SXEOLFLW\ JLYHQ WR WKLV PDWWHU WKURXJK WKH QHZV PHGLD
H[FHSW WR UHSRUW WKDW D QHZ WULDO KDG EHHQ JUDQWHG E\ WKH 6XSUHPH
'REEHUW86DW
3DWWRQY<RXQW86 LVDQRWKHUGHFLVLRQ
UHYLVLWLQJWKHLVVXHRIDGHQLHGPRWLRQIRUFKDQJHRIYHQXHLQ
DQH[WHQVLYHSUHWULDOSXEOLFLW\VHWWLQJ7KHGHIHQGDQWDKLJK
VFKRROWHDFKHUPXUGHUHGDIHPDOHVWXGHQWEXWKLVFRQYLFWLRQ
ZDVUHYHUVHGE\WKH3HQQV\OYDQLD6XSUHPH&RXUW7KHUH
WULDO VWDUWHG IRXU \HDUV ODWHU LQ WKH VDPH FRXQW\ DQG ZLWK
VXEVWDQWLDOQHZVSDSHUFRYHUDJHZKLFKLQFOXGHGWKHIDFWWKDW
WKHGHIHQGDQW¶VFRQIHVVLRQLQWURGXFHGWRREWDLQKLVFRQYLFWLRQ
LQ WKH ILUVW WULDO KDG EHHQ UXOHG LQDGPLVVLEOH E\ WKH
3HQQV\OYDQLD6XSUHPH&RXUW7KH7KLUG&LUFXLWLQDKDEHDV
VHWWLQJ IROORZLQJ <RXQW¶V FRQYLFWLRQ LQ WKH VHFRQG WULDO
JUDQWHGWKHZULWILQGLQJWKDW³SHWLWLRQHUKDGVKRZQWKDWWKH
SUHWULDO SXEOLFLW\ KDG FDXVHG DFWXDO SUHMXGLFH WR D GHJUHH
UHQGHULQJDIDLUWULDOLPSRVVLEOH´6HH<RXQWY3DWWRQ
)G G&LU
7KH 6XSUHPH &RXUW UHYHUVHG LQ D GHFLVLRQ DQG
LQGLFDWHGWKDWLWKDGJUDQWHGFHUWLRUDULWRFRQVLGHUWKHSUREOHP
RISHUYDVLYHPHGLDSXEOLFLW\WKDWDULVHVVRIUHTXHQWO\LQWKH
WULDORIVHQVDWLRQDOFULPLQDOFDVHV,QGHQ\LQJWKHZULW-XVWLFH
3RZHOOZULWLQJIRUWKHPDMRULW\FRQFOXGHGWKDW³WKHYRLUGLUH
WHVWLPRQ\DQGWKHUHFRUGRISXEOLFLW\GRQRWUHYHDOWKHNLQGRI
μZDYHRISXEOLFSDVVLRQ¶WKDWZRXOGKDYHPDGHDIDLUWULDO
XQOLNHO\E\WKHMXU\WKDWZDVHPSDQHOHGDVDZKROH´<RXQW
86DW
1R 5LWFKLHY5RJHUV
$ <HV
4 $QG OLVWHQ WR WKH HYLGHQFH ZDWFK WKH ZLWQHVVHV OLVWHQ DQG
IROORZ WKH LQVWUXFWLRQV -XGJH ZLOO JLYH \RX DQG UHQGHU DQ
RSLQLRQ FRPSOHWHO\ DSDUW IURP ZKDW \RX PD\ KDYH UHDG RU VDZ
RQ 79"
$ <HV , FRXOG
4 $Q\ SUREOHP ZLWK WKDW DW DOO"
$ 1R
05 +(&. 7KDQN \RX YHU\ PXFK
-$ DW
05 &+(&. <HV
%< 05 +(&.
4 <RX KDYH KHDUG WKH SDUDPHWHUV , DVVXPH VLQFH \RX DUH LQ 1R
WKDW \RX KDYH DQ RSLQLRQ EXW LW LV QRW D ILUPO\ KHOG RSLQLRQ
$ <HV VLU
4 :KHUH GLG \RX UHDG KHDU RU VHH RU JHW WKLV LQIRUPDWLRQ"
$ 7HOHYLVLRQ QR SDUWLFXODU VWDWLRQ PRVWO\ $ OLWWOH ELW RI
QHZVSDSHUV IURP WKH 'D\WRQ 'DLO\
4 'R \RX UHPHPEHU DQ\WKLQJ VSHFLILFDOO\ WKDW \RX VDZ RU KHDUG"
$ , WULHG WR WKLQN RI WKLV EHIRUH \RX NQRZ 7KLV ODG\ MXVW EURXJKW
XS D ORW RI WKLQJV , GRQ¶W UHPHPEHU , UHPHPEHU D FDVW EXW ,
GRQ¶W UHPHPEHU DQ\WKLQJ DERXW LW $V IDU DV ZKDW VKH EURXJKW
XS , GRQ¶W UHPHPEHU D ORW RI WKDW
4 $JDLQ JRLQJ WKURXJK D WULDO \RX PD\ KHDU WKLQJV LQ D WULDO WKDW
\RX UHFROOHFW VRPHWKLQJ WKDW \RX KDG KHDUG SUHYLRXVO\ 7KDW LV
QRW XQFRPPRQ LQ DQ\ FDVH 2ND\" 7KDW LV QRW D SUREOHP 1RW
D SUREOHP WKDW \RX KDYH DQ RSLQLRQ 'R \RX KDYH DQ RSLQLRQ LQ
WKLV SDUWLFXODU FDVH"
$ 1R , GRQ¶W WKLQN , GR , VKRXOG VD\ QR , GRQ¶W 7KLQN LV QRW
JRRG %XW WKH UHDVRQ ± \RX WDONHG WR WKH ODG\ DERXW WHOHYLVLRQ
EHOLHYLQJ 7HOHYLVLRQ DQG QHZVSDSHUV , OLNH WR UHDG DQG VHH 79
DERXW VWRULHV EXW DV IDU DV PDNLQJ P\ RSLQLRQV DERXW WKRVH
VWRULHV , OLNH WR JHW D OLWWOH PRUH IDFWV 6RPHWLPHV , GRQ¶W WKLQN
\RX FDQ GR WKDW ZLWK WKHP , WU\ WR UHVHUYH P\ MXGJPHQW
4 $QG WKH -XGJH ZLOO LQVWUXFW \RX WKDW \RX KDYH WR ILQG WKH
GHIHQGDQW JXLOW\ RU LQQRFHQW EDVHG RQ ZKDW \RX KHDU DQG VHH LQ
WKH FRXUWURRP
$ <HV VLU
4 , SUHVXPH LI \RX GR QRW KDYH DQ RSLQLRQ DV WR KHU JXLOW RU
LQQRFHQFH WKDW LV QRW D SUREOHP IRU \RX LV WKDW FRUUHFW"
$ 1R LW LV QRW
4 +DYH \RX WDONHG WR DQ\RQH HOVH DERXW WKH FDVH"

-- 8 of 14 --

5LWFKLHY5RJHUV 1R
7KH TXHVWLRQV DQG DQVZHUV RI MXURUV 6PLWK DQG &KHFN ZKR ZHUH
TXHVWLRQHG GXULQJ WKH YRLU GLUH IROORZV
%< 05 +(&.
4 0UV 6PLWK
$ 0LVV
4 0LVV 6PLWK $JDLQ &DWHJRU\ 7KUHH ZKLFK LV \RX KDYH DQ
RSLQLRQ EXW LW LV QRW ILUPO\ KHOG LV WKDW FRUUHFW"
$ <HV
4 :KHUH GLG \RX JHW \RXU LQIRUPDWLRQ IURP"
$ &KDQQHO DQG VRPH RI WKH 'D\WRQ 'DLO\
4 $QG , DP JRLQJ WR DVN \RX GLG \RX VSHDN WR DQ\ RI \RXU IULHQGV
RU FRZRUNHUV RU DQ\WKLQJ OLNH WKDW"
$ &RZRUNHUV
4 $QG GLG WKH\ KDYH RSLQLRQV DERXW WKH FDVH"
$ <HV WKH\ GLG
4 $QG GLG WKH\ WHOO \RX ZKDW WKRVH RSLQLRQV ZHUH"
$ <HV
4 $QG DV D UHVXOW RI ZKDW \RX VDZ OHW PH DVN \RX ILUVW GR \RX
UHPHPEHU DQ\ VSHFLILFV RI ZKDW \RX VDZ RU UHDG"
$ -XVW KHU EHLQJ IRXQG DQG WKH FDVW
4 $Q\WKLQJ HOVH"
$ 1R
4 1RWKLQJ DIWHU WKDW"
$ 1R
4 1RWKLQJ UHFHQWO\ LQ WKH ODVW ZHHN RU WZR"
$ 1R
4 $QG DV D UHVXOW RI WKDW GLG \RX UHDFK DQ RSLQLRQ DV WR WKH JXLOW
RU LQQRFHQFH RI WKH GHIHQGDQW"
$ :HOO , WKRXJKW VKH ZDV JXLOW\
4 $QG , DP JRLQJ WR DVN \RX FDQ \RX SXW WKDW DVLGH"
SXWDVLGHWKHLUEHOLHIVDERXWSHWLWLRQHU¶VJXLOWDQGGHFLGHWKH
FDVHRQO\RQWKHHYLGHQFHSUHVHQWHGLQWKHFRXUWURRP
3HWLWLRQHU FRQWHQGV WKDW WKH VZLWFK WR JURXS YRLU GLUH RI
&DWHJRU\ 1R MXURUV LQFOXGLQJ 6PLWK DQG &KHFN
FRQVWLWXWHGDGXHSURFHVVYLRODWLRQZKHQWKHPRWLRQWRFKDQJH
YHQXHZDVGHQLHG3HWLWLRQHUFODLPVWKDW6PLWKDQG&KHFN
DIWHU OLVWHQLQJ WR ZKLFK DQVZHUV OHG WR D MXU\ H[FXVDO DQG
ZKLFK DQVZHUV UHVXOWHG LQ WKH MXURU UHPDLQLQJ ZHUH
FRQGLWLRQHGWRDJUHHWKDWWKH\FRXOGVHWDVLGHWKHLUSUHYLRXVO\
LQGLFDWHGYLHZWKDWSHWLWLRQHUZDVJXLOW\DQGGHFLGHWKHFDVH
VROHO\RQWKHHYLGHQFHSUHVHQWHGLQWKHFRXUWURRPVRDVWR
UHPDLQRQWKHMXU\SDQHO
1R 5LWFKLHY5RJHUV
&RXUW´ VLPSO\ LJQRUHV DW OHDVW IURQWSDJH DUWLFOHV WKDW DUH
LQ WKH UHFRUG )XUWKHU WKH WULDO MXGJH¶V VWDWHPHQW WKDW
³DOPRVW DOO LI QRW DOO >RI WKH ILUVW @ MXURUV KDG QR SULRU RU
SUHVHQW IL[HG RSLQLRQ´ LV PDQLIHVWO\ HUURQHRXV D UHYLHZ RI
WKH UHFRUG UHYHDOV WKDW RI WKH KDG DFNQRZOHGJHG HLWKHU D
SULRU RU D SUHVHQW RSLQLRQ 7KH WULDO MXGJH¶V ³SUDFWLFDOO\ QR
SXEOLFLW\´ VWDWHPHQW DOVR LJQRUHV WKH ILUVWWULDO GHWDLOV ZLWKLQ WKH
QHZV VWRULHV 7KHVH LQFOXGHG <RXQW¶V FRQIHVVLRQV WHVWLPRQ\
DQG FRQYLFWLRQ RI UDSH ± DOO RI ZKLFK ZHUH RXWVLGH RI WKH
HYLGHQFH SUHVHQWHG DW WKH VHFRQG WULDO 8QGHU WKHVH
FLUFXPVWDQFHV , GR QRW EHOLHYH WKDW WKH MXU\ ZDV FDSDEOH RI
GHFLGLQJ WKH FDVH VROHO\ RQ WKH HYLGHQFH EHIRUH LW 6PLWK Y
3KLOOLSV 8 6 ³'XH SURFHVV PHDQV D MXU\
FDSDEOH DQG ZLOOLQJ WR GHFLGH WKH FDVH VROHO\ RQ WKH HYLGHQFH
EHIRUH LW´
<RXQW 86 DW 6WHYHQV - GLVVHQWLQJ LQWHUQDO FLWDWLRQV
RPLWWHG
7KH 2KLR WULDO FRXUW LQ LWV ZULWWHQ RUGHU GHQ\LQJ WKH PRWLRQ IRU
FKDQJH RI YHQXH VWDWHG LQ UHOHYDQW SDUW
$V VWDWHG RQ WKH UHFRUG RQ -DQXDU\ WKLV &RXUW KDV
FRQVLGHUHG WKH PDWWHUV ZKLFK ZHUH LQ WKH PRWLRQ IRU FKDQJH RI
YHQXH $IWHU VXFK FRQVLGHUDWLRQ WKLV &RXUW EHOLHYHV WKDW WKH
SURVSHFWLYH MXURUV KDYH H[SUHVVHG KRQHVWO\ DQG IDLUO\ WKHLU
IHHOLQJV DERXW WKH FDVH LQ OLJKW RI SUHWULDO SXEOLFLW\ 7KH &RXUW
FUHGLWV HDFK MXURU ZLWK WKH YHUDFLW\ RI WKHLU VWDWHPHQWV XQGHU RDWK
DQG LV FRQYLQFHG WKDW WKH\ FDQ DFFRUG WKLV 'HIHQGDQW WKH
SUHVXPSWLRQ RI LQQRFHQFH DQG WKDW WKH\ GR QRW SUHVXPH JXLOW
$OWKRXJK PDQ\ RI WKH MXURUV GLG FRQYH\ WKDW WKH\ KDG IRUPHG DQ
RSLQLRQ EDVHG RQ PHGLD SULRU WR FRPLQJ WR FRXUW PDQ\ DOVR
FRQYLQFHG WKLV &RXUW WKDW WKH\ FRXOG VHW WKDW RSLQLRQ DVLGH DQG
,QWKHLQVWDQWFDVHWKHWULDOFRXUWGLGQRWVSHDNWRWKHLVVXH
RI³SUHVXPHGSUHMXGLFH´HYHQWKRXJKWKHPRWLRQIRUFKDQJH
RI YHQXH VHW IRUWK WKH PDWHULDOV WKDW VXSSRUWHG RXU EULHI
VXPPDU\ RI WKH LQWHQVLYH DQG IRFXVHG SXEOLFLW\ RQ WKH
FXOSDELOLW\ RI SHWLWLRQHU DIWHU WKH VHDUFK IXQHUDO DQG
UHYHODWLRQWKDWWKHPRWKHUZKRKDGUHSRUWHGWKHFKLOGPLVVLQJ
ZDVLQIDFWWKHNLOOHU5DWKHUWKHGLVWULFWFRXUWSURFHHGHGRQ
WKH EDVLV WKDW WKLV FDVH SUHVHQWHG DQ LVVXH RI ³DFWXDO
SUHMXGLFH´DQGWKHQHVWDEOLVKHGDIRFXVHGYRLUGLUHSURFHVVWR
GHWHUPLQHLI³DFWXDOSUHMXGLFH´H[LVWHG

-- 9 of 14 --

5LWFKLHY5RJHUV 1R
SODFH LQWR HIIHFW WKH SUHVXPSWLRQ RI LQQRFHQFH ZKLFK LV UHTXLUHG
XQGHU WKH ODZ
-$ DW
7KH PDMRULW\¶V GHFLVLRQ LQ :LOOLDPV DV LW UHODWHV WR WKH WHVW VHW IRUWK
LQ † G ZDV ZULWWHQ E\ -XVWLFH 2¶&RQQRU LQ 6HFWLRQ ,, RI KHU
RSLQLRQ
:LOOLDPV IXUWKHU SURYLGHV
8QGHU WKH ³XQUHDVRQDEOH DSSOLFDWLRQ´ FODXVH D IHGHUDO
KDEHDV FRXUW PD\ JUDQW WKH ZULW LI WKH VWDWH FRXUW LGHQWLILHV WKH
FRUUHFW JRYHUQLQJ OHJDO SULQFLSOH IURP WKLV &RXUW¶V GHFLVLRQV EXW
XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH SULVRQHU¶V
FDVH
86 DW
7KH GLVWULFW FRXUW¶V GHFLVLRQ GHQ\LQJ WKH ZULW FDUHIXOO\
DQDO\]HGWKHLPSRUWDQFHRI:LOOLDPVY7D\ORU86
ZKLFKUHSODFHGWKHDQDO\VLVLQ1HYHUVY.LOOLQJHU
VXSUD DQG KHOG WKDW WKH ³FRQWUDU\ WR´ DQG ³XQUHDVRQDEOH
DSSOLFDWLRQ RI´ FODXVHV LQ † G DUH WR EH JLYHQ
LQGHSHQGHQW PHDQLQJ $ VWDWH GHFLVLRQ LV ³FRQWUDU\ WR´
6XSUHPH&RXUWSUHFHGHQWLI WKHVWDWHFRXUWDUULYHVDWD
FRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\WKH6XSUHPH&RXUWRQ
DTXHVWLRQRIODZRU WKHVWDWHFRXUWFRQIURQWVIDFWVWKDWDUH
PDWHULDOO\LQGLVWLQJXLVKDEOHIURPDUHOHYDQW6XSUHPH&RXUW
SUHFHGHQW DQG DUULYHV DW D UHVXOW RSSRVLWH WKH 6XSUHPH
&RXUW¶V86DW
:LOOLDPV WHDFKHV WKDW DQ ³XQUHDVRQDEOH´ DSSOLFDWLRQ LV
GLIIHUHQWIURPDQLQFRUUHFWRQH$VLQGLFDWHGE\WKHGLVWULFW
FRXUW ³>X@QGHU † G ¶V μXQUHDVRQDEOH DSSOLFDWLRQ¶
FODXVHWKHQDIHGHUDOKDEHDVFRXUWPD\QRWLVVXHWKHZULW
VLPSO\EHFDXVHWKDWFRXUWFRQFOXGHVWKDWWKHUHOHYDQWVWDWH
FRXUW GHFLVLRQ DSSOLHG FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ
HUURQHRXVO\RULQFRUUHFWO\5DWKHUWKDWDSSOLFDWLRQPXVWDOVR
EHXQUHDVRQDEOH´-$DW
1R 5LWFKLHY5RJHUV
UHFHLYHGRUSDUWLFXODUO\WKDW\RXUHFDOOKDYLQJUHFHLYHG
IURPDQ\QHZVPHGLDVRXUFHV

$JDLQOHWPHUHSHDW$Q\SURVSHFWLYHMXURUVZKRKDYH
RSLQLRQV DERXW ZKHWKHU WKH GHIHQGDQW LV JXLOW\ RU QRW
JXLOW\RIWKHRIIHQVHWKDWKDYHEHHQGHULYHGIURPQHZV
DFFRXQWVRUDQ\RWKHUVRXUFHWKDWPD\KDYHFRPHWRWKHP
WKDWFDQQRWVHWWKHVHRSLQLRQVDVLGHDQGSHUIRUPDVDIDLU
XQELDVHGXQSUHMXGLFHGMXURULQWKLVFDVH"2ND\6XEMHFW
WRWKHRQHH[FHSWLRQWKHQZHDUHJRLQJWREULQJJURXSV
RIRI\RXLQWRWKHER[DQGDOORZFRXQVHOWRSURFHHGWR
TXHVWLRQ\RXLQGLYLGXDOO\
-$DW
2QFHWKHJURXSYRLUGLUHRIMXURUVLQ&DWHJRU\1REHJDQ
DOOWKHMXURUVZHUHTXHVWLRQHGLQDJURXSVHWWLQJ(DFKVXFK
MXURUZKHQTXHVWLRQHGLQDJURXSVHWWLQJLQGLFDWHGDEHOLHI
WKDW WKH GHIHQGDQW ZDV JXLOW\ RU SUREDEO\ JXLOW\ )XUWKHU
TXHVWLRQLQJ E\ WKH FRXUW IROORZHG ZLWK WKH UHVXOW WKDW
&DWHJRU\1RMXURUVZKRLQGLFDWHGDQLQDELOLW\WRVHWDVLGH
WKHRSLQLRQRIJXLOWDQGGHFLGHWKHFDVHRQO\RQWKHHYLGHQFH
SUHVHQWHGGXULQJWKHWULDOZHUHH[FXVHGZLWKRXWH[FHSWLRQ
+RZHYHUZKHQD&DWHJRU\1RMXURULQGLFDWHGDZLOOLQJQHVV
DQGDELOLW\WRGHFLGHWKHFDVHRQO\RQWKHHYLGHQFHSUHVHQWHG
LQFRXUWWKRVHMXURUVZHUHQRWH[FXVHG(YHQWXDOO\WKHMXURUV
ZKR GHFODUHG WKHPVHOYHV WR EH LQ &DWHJRU\ 1R ZHUH
TXHVWLRQHGLQGLYLGXDOO\DQGDOOMXURUVLQWKDW&DWHJRU\ZHUH
H[FXVHG$IWHUWKHLQLWLDOYRLUGLUHSURFHVVZDVFRPSOHWHGDV
WRWKHHIIHFWRIWKHSUHWULDOSXEOLFLW\&DWHJRU\1RMXURUV
EHFDPHLQYROYHGLQWKHEDODQFHRIWKHYRLUGLUHSURFHVV
(DFKVLGHXVHGWKHLUDOORWWHGIRXUSHUHPSWRU\FKDOOHQJHV
7KHWZHOYHMXURUVWKDWUHPDLQHGDFFRUGLQJWRUHVSRQGHQWDQG
ZLWKQRGLVSXWHIURPSHWLWLRQHULQFOXGHGIRXU&DWHJRU\1R
MXURUV %UHQWV 6KHOGRQ 6PLWK DQG &KHFN $OO IRXU ZHUH
TXHVWLRQHGDERXWWKHHIIHFWRISUHWULDOSXEOLFLW\%UHQWVDQG
6KHOGRQGXULQJWKHLQGLYLGXDOYRLUGLUHDQG6PLWKDQG&KHFN
GXULQJWKHJURXSYRLUGLUH$OOIRXULQGLFDWHGWKDWWKH\FRXOG

-- 10 of 14 --

5LWFKLHY5RJHUV 1R
6XEVHTXHQWO\WKHWULDOFRXUWRYHUSHWLWLRQHU¶VREMHFWLRQ
GLUHFWHG WKDW YRLU GLUH FRQWLQXH RQ D JURXS EDVLV ,Q KLV
H[SODQDWLRQIRUFRQYHUWLQJIURPLQGLYLGXDOWRJURXSYRLUGLUH
WKHWULDOFRXUWH[SODLQHG
7+( &2857 /DGLHV DQG JHQWOHPHQ ZH DUH
SURFHHGLQJ,WKLQNSHUKDSVQRWTXLWHDVUDSLGO\DV,KDG
RULJLQDOO\ DQWLFLSDWHG EXW ZH DUH JRLQJ LQ WKH ULJKW
GLUHFWLRQ DV IDU DV LQTXLULQJ RI \RX DERXW \RXU
TXDOLILFDWLRQVWRVHUYHDVMXURUVLQWKLVFDVH
:H DUH JRLQJ WR , WKLQN HIILFLHQF\ ZLOO DOORZ XV WR
LQTXLUH RI DOO RI \RX DV D JURXS RI MXURUV QRZ RQ WKH
TXHVWLRQVWKDWZHZDQWWRWDONWR\RXDERXWZKLFKZLOO
DOORZXVWRJHWWR\RXUHOLJLELOLW\IRUIXUWKHUTXHVWLRQLQJ
SHUKDSVDOLWWOHPRUHHIILFLHQWO\
,Q&DWHJRU\7KUHHHDFKRI\RXE\SODFLQJ\RXUVHOILQ
WKDWFDWHJRU\KDYHFODVVLILHG\RXUVHOIDVEHLQJIDPLOLDU
ZLWKWKHFDVHQHZVDFFRXQWVWKHSDUWLHVRUWKHDWWRUQH\V
LQVRPHIDVKLRQ7KDWWKHMXURUVKDYHIROORZHGWKHQHZV
DFFRXQWV DQG GR UHFDOO VRPH GHWDLOV RI WKRVH UHSRUWV
7KHVHDUHMXURUVZKRPD\KDYHIRUPHGRUH[SUHVVHGDQ
RSLQLRQDERXWZKHWKHUGHIHQGDQWLVJXLOW\RUQRWJXLOW\RI
WKHRIIHQVHVFKDUJHGEXWWKHVHRSLQLRQVDUHQRWILUPO\
KHOG

7KHREOLJDWLRQRIWKH&RXUWDQGFRXQVHOLVWRLQTXLUHRI
\RX IXUWKHU WKRVH ZKR DUH LQ WKLV FDWHJRU\ IXUWKHU WR
GHWHUPLQHWKHQDWXUHRIWKHNQRZOHGJHRUGHWDLOVWKDW\RX
KDYHDFTXLUHGDERXWWKLVFDVHIURPZKDWHYHUVRXUFHDQG
DOVR WR LQTXLUH RI \RX DERXW ZKDW RSLQLRQV \RX HLWKHU
SUHYLRXVO\ KDYH KHOG RU SUHVHQWO\ KROG DERXW ZKHWKHU
GHIHQGDQWLVJXLOW\RUQRWJXLOW\RIWKHVHRIIHQVHVDQG
ILQDOO\WRLQTXLUHRI\RXZKHWKHURUQRW\RXFDQVHWDVLGH
DQG VHW RXW RI \RXU PLQG DQG OD\ DVLGH WKH RSLQLRQV
SDUWLFXODUO\WKHRSLQLRQVZKLFK\RXPD\KDYHIRUPHG
EXW DOVR DQ\ RI WKH LQIRUPDWLRQ WKDW \RX PD\ KDYH
1R 5LWFKLHY5RJHUV
7KHGLVWULFWFRXUWUHYLHZHGWKHVWDWHFRXUW¶VDSSOLFDWLRQVRI
ODZWRIDFWWRGHWHUPLQHLIWKH\ZHUH³REMHFWLYHO\UHDVRQDEOH´
-$DW7KHFRXUWTXRWHGDWOHQJWKIURPWKHGHFLVLRQRI
WKH 2KLR DSSHOODWH FRXUW ZKLFK DIILUPHG SHWLWLRQHU¶V
FRQYLFWLRQLQFOXGLQJWKHIROORZLQJFRQFOXVLRQRIWKDWFRXUW
ZLWK UHVSHFW WR WKH WULDO FRXUW¶V FKDOOHQJHG GHQLDO RI WKH
PRWLRQIRUFKDQJHRIYHQXH
7KHFULWLFDOLVVXHWREHGHWHUPLQHGLVZKHWKHU5LWFKLH¶V
ULJKWWRDIDLUWULDOZDVYLRODWHGE\WKHSUHWULDOSXEOLFLW\
DQGWKHWULDOFRXUW¶VUHIXVDOWRFKDQJHYHQXH5LWFKLHKDV
QRW HVWDEOLVKHG WKH UDUH FDVH LQ ZKLFK SUHMXGLFH LV
SUHVXPHG6KHKDVDOVRIDLOHGWRVKRZWKDWWKHSUHWULDO
SXEOLFLW\ LQWHUIHUHG ZLWK WKH VHDWLQJ RI D IDLU DQG
LPSDUWLDOMXU\7KHUHIRUHZHFDQQRWVD\WKDWWKHWULDO
FRXUWDEXVHGLWVGLVFUHWLRQE\UHWDLQLQJWKHFDVHIRUWULDO
LQ0RQWJRPHU\&RXQW\ (PSKDVLVDGGHG
-$DW TXRWLQJ6WDWHY5LWFKLH2KLR$SS/(;,6
DW
7KHGLVWULFWFRXUWLQGHQ\LQJWKHZULWZLWKUHVSHFWWRWKH
FKDQJHRIYHQXHLVVXHHPSKDVL]HGDQGFRQFOXGHGDVIROORZV
$VFDQEHVHHQWKH2KLR&RXUWRI$SSHDOVUHOLHGIRU
LWVVWDQGDUGVRQ6WDWHY/XQGJUHQ2KLR6WG
1(QG DQGLWVRZQSULRUGHFLVLRQLQ
6WDWHY1REOHV2KLR$SSG1(G
7KLV GRHV QRW HYLQFH DQ DWWLWXGH RI LJQRULQJ
8QLWHG 6WDWHV 6XSUHPH &RXUW SUHFHGHQW KRZHYHU
/XQGJUHQDSSOLHGDQ,UYLQY'RZGDSSURDFKDQDO\]LQJ
WKHH[WHQWRIDGYHUVHSUHWULDOSXEOLFLW\DQGWKHYRLUGLUH
GHYRWHGWRXQFRYHULQJLWVHIIHFWV,Q1REOHVWKH&RXUWRI
$SSHDOVKDGDOVRSHUIRUPHGDQ,UZLQY'RZGDQDO\VLV
7KH &RXUW RI $SSHDOV WKXV DSSOLHG WKH FRUUHFW IHGHUDO
FRQVWLWXWLRQDO VWDQGDUGV DOEHLW DV UHIOHFWHG LQ LWV RZQ
SUHFHGHQWDQGWKDWRIWKH2KLR6XSUHPH&RXUW1HLWKHU
/XQGJUHQ QRU 1REOHV LV ³FRQWUDU\ WR´ 8QLWHG 6WDWHV
6XSUHPH&RXUWSUHFHGHQW

-- 11 of 14 --

5LWFKLHY5RJHUV 1R
7KLV&RXUWIXUWKHUFRQFOXGHVWKDWWKH2KLR&RXUWRI
$SSHDOV¶ DSSOLFDWLRQ RI WKH FOHDUO\ HVWDEOLVKHG IHGHUDO
ODZZDVREMHFWLYHO\UHDVRQDEOH
7KH&RXUWRI$SSHDOVUHFRJQL]HGWKDWSUHWULDOSXEOLFLW\
LQ WKLV FDVH ZDV SHUYDVLYH DQG XQLIRUPO\ DGYHUVH WR
3HWLWLRQHU7KDWSXEOLFLW\ZDVXQGRXEWHGO\IXHOHGE\WKH
REYLRXVFRPSDULVRQEHWZHHQWKLVFDVHDQGWKDWRI6XVDQ
6PLWKD6RXWK&DUROLQDPRWKHUZKRGURZQHGKHUWZR
VRQVDQGWKHQFODLPHGWKH\KDGEHHQDGGXFWHG>VLF@$V
DUHVXOWWKHFDVHUHFHLYHGH[WHQVLYHORFDOFRYHUDJHDQG
VRPHVWDWHZLGHDQGHYHQQDWLRQDODWWHQWLRQDIDFWZKLFK
WKH &RXUW RI $SSHDOV UHFRJQL]HG 2KLR $SS
/(;,6DW ,WQRWHGWKDWWKHSXEOLFLW\ZDVQRWDV
KRVWLOHDVWKDWLQ/XQGJUHQ ZKHUHWKH&RXQW\3URVHFXWRU
KDG ODEHOHG GHIHQGDQWV ³LQKXPDQ´ DQG SUHGLFWHG WKH\
ZRXOG GLH LQ WKH HOHFWULF FKDLU QRU GLG WKH FRYHUDJH
LQFOXGH GHWDLOV RI 3HWLWLRQHU¶V FRQIHVVLRQ DV KDG
KDSSHQHGLQ1REOHV
-$DW
7KHGLVWULFWFRXUWDFNQRZOHGJLQJWKDWWKH2KLR&RXUWRI
$SSHDOVGLGQRWKDYHWKHEHQHILWRI1HYHUVY.LOOLQJHUVXSUD
FRPSDUHG WKH OHYHO RI SUHWULDO SXEOLFLW\ LQ 1HYHUV WR
SHWLWLRQHU¶VFDVHDQGFRQFOXGHG
7KH2KLR&RXUWRI$SSHDOVGLGQRWKDYHWKHEHQHILWVRI
WKH6L[WK&LUFXLW¶VGHFLVLRQLQ1HYHUVEXWWKDWGHFLVLRQ
DOVR VXSSRUWV WKLV &RXUW¶V FRQFOXVLRQ 1HYHUV ZDV D
'HWURLWSROLFHRIILFHUFKDUJHGZLWKVHFRQGGHJUHHPXUGHU
LQ WKH GHDWK RI D SHUVRQ ZKRP KH DSSUHKHQGHG 7KH
GHDWKRFFXUUHGVKRUWO\DIWHUWKHDFTXLWWDORQVWDWHFULPLQDO
FKDUJHV RI WKH /RV $QJHOHV SROLFH RIILFHUV ZKR EHDW
5RGQH\ .LQJ LQ WKH FRXUVH RI KLV DUUHVW 7KH &LW\ RI
'HWURLWTXLFNO\DJUHHGWRPLOOLRQVHWWOHPHQWZLWKWKH
HVWDWHRIWKHGHFHGHQWDQGWKH0D\RURI'HWURLWVWDWHGRQ
QDWLRQDOWHOHYLVLRQWKDWWKHDUUHVWHHKDGEHHQ³OLWHUDOO\
PXUGHUHGE\SROLFH´1HYHUWKHOHVVWKHFRXUWDSSOLHGWKH
,UYLQY'RZGSURFHGXUHDQGIRXQGWKDWDQLPSDUWLDOMXU\
KDGEHHQVHDWHG6LJQLILFDQWO\WZRMXURUVFKDOOHQJHGIRU
1R 5LWFKLHY5RJHUV
3HWLWLRQHUDVVHUWVDQGUHVSRQGHQWGRHVQRWGHQ\WKDWQRQH
RIWKHSURVSHFWLYHMXURUVZKRUHVSRQGHGWRWKHTXHVWLRQQDLUH
LQGLFDWHG WKDW WKH\ ZHUH D &DWHJRU\ 1R MXURU $IWHU WKH
SURVSHFWLYHMXURUVFRPSOHWHGWKHLULQLWLDOFODVVLILFDWLRQVWKH
&DWHJRU\1RMXURUVZHUHVHQWKRPHEHFDXVHWKHWULDOFRXUW
GHFLGHGWKDWWKRVHSURVSHFWLYHMXURUVZRXOGQRWSDUWLFLSDWHLQ
WKH³SUHWULDOSXEOLFLW\SKDVH´RIWKHYRLUGLUH-$DW
7KH&DWHJRU\1RSURVSHFWLYHMXURUVVWD\HGWRSDUWLFLSDWHRQ
WKHOLPLWHGLVVXHRISUHWULDOSXEOLFLW\-$DW
%HIRUHPRYLQJWRJURXSYRLUGLUHWKHWULDOFRXUWGLVFXVVHG
LWVUDWLRQDOHIRULQGLYLGXDOYRLUGLUHE\VWDWLQJ
,I\RXDUHLQ&DWHJRU\1RRUZKLFK,DVVXPHWKH
UHPDLQGHURI\RXDUHFRXQVHODQGWKH&RXUWDUHJRLQJWR
SURFHHGWRTXHVWLRQ\RXLQGLYLGXDOO\RXWRIWKHSUHVHQFH
RIWKHRWKHUMXURUV7KLVLQGLYLGXDOYRLUGLUHRUVHSDUDWH
TXHVWLRQLQJLVEHLQJFRQGXFWHGEHFDXVHZHDUHJRLQJWR
EHDVNLQJHDFKRI\RXH[DFWO\ZKDWLWLVWKDW\RXUHFDOO
YLHZLQJOLVWHQLQJWRRUUHDGLQJDERXWSHUWDLQLQJWRWKLV
FDVHDQGZKDW\RXNQRZRUEHOLHYH\RXNQRZDERXWLW
:HZLOOWKHQDVN\RXZKDWLIDQ\\RXURSLQLRQVDUHDQG
WKHH[WHQWWRZKLFKWKH\DUHKHOG
7RPDNHWKHVHLQTXLULHVLQWKHSUHVHQFH RIHDFKRWKHU
ZRXOG FDXVH VXEVWDQWLDO FRQIXVLRQ DQG SUREDEOH
SUHMXGLFHWRWKHSDUWLHVEHFDXVHILUVWRIDOOSHRSOHKHDU
VHHDQGUHDGDQGLQWHUSUHWWKLQJVDQGUHPHPEHUWKLQJV
GLIIHUHQWO\SDUWLFXODUO\QHZVLWHPVDQGZHGRQ¶WZDQW
RQHSHUVRQ¶VUHFROOHFWLRQRIWKHVHDFFRXQWVHLWKHUDGGLQJ
WR RU FKDQJLQJ ZKDW DQRWKHU SHUVRQ¶V VWDWH RI WKH
NQRZOHGJHRULPSUHVVLRQPLJKWEH
6HFRQGO\RSLQLRQVDERXWZKHWKHUGHIHQGDQWLVJXLOW\RU
QRW JXLOW\ WKDW DUH H[SUHVVHG LQ WKH SUHVHQFH RI RWKHU
MXURUV ZKLFK RSLQLRQV DUH QRW EDVHG RQ HYLGHQFH
SURGXFHG LQ FRXUW FRXOG XQIDLUO\ DIIHFW WKH RWKHU
SRWHQWLDO MXURUV ZKR HLWKHU GR RU GR QRW VKDUH WKRVH
RSLQLRQV
$SSHOODQW¶V%UDW

-- 12 of 14 --

5LWFKLHY5RJHUV 1R
7KDWPD\QRWEHHDV\
$SSHOODQW¶V%UDW
$JDLQVWWKDWEDFNJURXQGWKHVWDWHWULDOFRXUWVXPPRQHGD
ODUJH QXPEHU RI SURVSHFWLYH MXURUV DQG DVNHG HDFK RQH WR
FDWHJRUL]HKLVRUKHUSRVLWLRQLQFRPSOLDQFHZLWKWKHWULDO¶V
FRXUWLQVWUXFWLRQVDVIROORZV
&DWHJRU\ 2QH ZKDW ZH DUH FDOOLQJ &DWHJRU\ 2QH LV
MXURUVZKRDUHQRWIDPLOLDUZLWKWKLVFDVHRUWKHQHZV
DFFRXQWVRUSDUWLHVRUDWWRUQH\VLQWKHFDVHDQGKDYHQR
RSLQLRQDERXWZKHWKHUGHIHQGDQWLVJXLOW\RUQRWJXLOW\RI
WKHFKDUJHV
&DWHJRU\DUHWKRVHMXURUVZKRDUHVRPHZKDWIDPLOLDU
ZLWK WKH FDVH WKH QHZV DFFRXQWV WKH SDUWLHV RU WKH
DWWRUQH\VDQGPD\UHFDOOVXFKQHZVEURDGFDVWVRUQHZV
ZULWLQJVEXWQRWWKHGHWDLOVRIVXFKDQGKDYHQRRSLQLRQ
DVWRZKHWKHUWKHGHIHQGDQWLVJXLOW\RUQRWJXLOW\RIWKH
FKDUJHV
&DWHJRU\1RDUHMXURUVZKRDUHIDPLOLDUZLWKWKHFDVH
WKHQHZVDFFRXQWVWKHSDUWLHVRUWKHDWWRUQH\V7KHVHDUH
MXURUVZKRKDYHIROORZHGWKHQHZVDFFRXQWVDQGUHFDOO
GHWDLOVRIWKHUHSRUWV7KHVHDUHMXURUVDOVRZKRKDYH
IRUPHG RU H[SUHVVHG DQ RSLQLRQ DERXW ZKHWKHU WKH
GHIHQGDQWLVJXLOW\RUQRWJXLOW\EXWWKLVRSLQLRQLVQRW
ILUPO\KHOG
&DWHJRU\1RDUHMXURUVZKRDUHYHU\IDPLOLDUZLWKWKH
FDVH WKH QHZV DFFRXQWV WKH SDUWLHV RU WKH DWWRUQH\V
7KH\KDYHFORVHO\IROORZHGWKHQHZVDFFRXQWVDQGKDYH
VXEVWDQWLDOUHFDOORIWKHGHWDLOVRIWKHVHUHSRUWVDQGWKHVH
DUHMXURUVZKRKDYHIRUPHGRUH[SUHVVHGRSLQLRQVDERXW
ZKHWKHUWKHGHIHQGDQWLVJXLOW\RUQRWJXLOW\DQGWKHVH
RSLQLRQVDUHILUPO\KHOG
-$DW
1R 5LWFKLHY5RJHUV
$Q DGGLWLRQDO SUREOHP IDFLQJ WKH WULDO MXGJH ZKHQ FRQIURQWHG ZLWK
D PRWLRQ IRU FKDQJH RI YHQXH LQ D KLJKO\ SXEOLFL]HG FULPLQDO FDVH LV
ZKHWKHU WR GHWHUPLQH WKH ³SUHVXPHG SUHMXGLFH´ LVVXH EHIRUH RU DIWHU WKH
YRLU GLUH 7KH WULORJ\ RI ³SUHVXPHG SUHMXGLFH´ FDVHV VHHP WR LQGLFDWH WKDW
VXFK D PRWLRQ VKRXOG EH GHFLGHG ZLWKRXW FRPPHQFLQJ WKH YRLU GLUH EXW
WKH 6XSUHPH &RXUW KDV FKRVHQ QRW WR VSHDN GLUHFWO\ WR WKDW LVVXH
+RZHYHU DV DFNQRZOHGJHG LQ 1HYHUV VXSUD WKH VXEVHTXHQW GHFLVLRQV LQ
0XUSK\ VXSUD DQG 'REEHUW VXSUD GLFWDWH WKDW PRWLRQV IRU FKDQJH RI
YHQXH EDVHG RQ ³SUHVXPHG SUHMXGLFH´ DUH UHVHUYHG IRU WKRVH FDVHV ZKHUH
³D WULDO DWPRVSKHUH KDV EHHQ XWWHUO\ FRUUXSWHG E\ SUHVV FRYHUDJH´
&RQVHTXHQWO\ DV ZH EHOLHYH WKH ODZ KDV GHYHORSHG XQOHVV WKH PDWHULDOV
VXEPLWWHG WR WKH WULDO MXGJH GHPRQVWUDWH DQ XWWHU FRUUXSWLRQ E\ WKH SUHVV
RI WKH WULDO DWPRVSKHUH WKH DFWXDO YRLU GLUH EHFRPHV WKH FHQWHUSLHFH RI
DWWHQWLRQ RQ WKH PRWLRQ WR FKDQJH WKH YHQXH
FDXVHZHUHDFWXDOO\VHDWHGRQWKH1HYHUVMXU\DOWKRXJK
WKH FRXUW FLWHG WR WKH 6XSUHPH &RXUW¶V REVHUYDWLRQ LQ
%HFNY:DVKLQJWRQ866&W/(G
QG WKDWWKHIDFWWKHSHWLWLRQHULQWKDWFDVHGLG
QRWFKDOOHQJHDQ\RIWKHVHDWHGMXURUVIRUFDXVH³LVVWURQJ
HYLGHQFHKHZDVFRQYLQFHGWKHMXURUVZHUHQRWELDVHG´
7KHIDFWVLQ1HYHUVZHUHFOHDUO\VWURQJHUIRUFKDQJHRI
YHQXHWKDQKHUH
-$DW
$JDLQVWWKHEDFNGURSRIWKHUHVWULFWLYHGHILQLWLRQRIFDVHV
GHPRQVWUDWLQJ ³SUHVXPHG SUHMXGLFH´ DV VHW IRUWK LQ WKH
6XSUHPH &RXUW ³WULORJ\´ DQG RXU RZQ GHFLVLRQ LQ 1HYHUV
VXSUDZHKROGWKDWWKHGHFLVLRQRIWKH2KLR&RXUWRI$SSHDOV
LQDIILUPLQJWKHWULDOFRXUW¶VGHQLDORIDPRWLRQIRUFKDQJHRI
YHQXHEDVHGRQ³SUHVXPHGSUHMXGLFH´ZDVQHLWKHU³FRQWUDU\
WR´QRUDQ³XQUHDVRQDEOHDSSOLFDWLRQRI´FOHDUO\HVWDEOLVKHG
)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH&RXUW7KHUHIRUH
ZH ILQG QR HUURU LQ WKDW VDPH FRQFOXVLRQ UHDFKHG E\ WKH
GLVWULFWFRXUW

-- 13 of 14 --

5LWFKLHY5RJHUV 1R
,9 ','7+(&21'8&72)7+(92,5',5(:+,&+
5(68/7(' ,1 $ ),1',1* 2) 12 ³$&78$/
35(-8',&(´ 9,2/$7( 7+( '8( 352&(66
5,*+762)3(7,7,21(5"
:KHQWKHPRWLRQIRUDFKDQJHRIYHQXHEDVHGRQH[WHQVLYH
SUHWULDO SXEOLFLW\ DQG SUHGLFDWHG RQ ³SUHVXPHG SUHMXGLFH´
IDLOVWKHLVVXHRI³DFWXDOSUHMXGLFH´UHPDLQVIRUUHYLHZE\WKH
WULDOFRXUWWRGHWHUPLQHZKHWKHUDUHYLHZRIERWKWKHMXU\YRLU
GLUH WHVWLPRQ\ DQG WKH H[WHQW DQG QDWXUH RI WKH PHGLD
FRYHUDJHLQGLFDWHVDIDLUWULDOLVRULVQRWSRVVLEOH$GGLQJWR
WKH GLIILFXOW\ RI KDQGOLQJ ³DFWXDO SUHMXGLFH´ LVVXHV LV WKH
WHQVLRQEHWZHHQWKHGXHSURFHVVULJKWRIDGHIHQGDQWWRDIDLU
DQGLPSDUWLDOMXU\DQGWKH)LUVW$PHQGPHQWULJKWRIWKHPHGLD
WRUHSRUWRQWKHSURFHHGLQJVLQWKHFRQWH[WRIWKHDSSURDFKLQJ
FULPLQDOWULDO7KHWHQVLRQLVZHOOGRFXPHQWHGLQERWK2KLR
DQGIHGHUDOMXULVSUXGHQFH,Q'D\WRQ1HZVSDSHUVY3KLOOLSV
2KLR6W DQRWKHUVHQVDWLRQDOKRPLFLGHFDVHLQ
0RQWJRPHU\&RXQW\WKHFRXUWLVVXHGDZULWRIPDQGDPXV
SURKLELWLQJ WKH &RPPRQ 3OHDV -XGJH DVVLJQHG WKH PXUGHU
FDVHIURPFORVLQJWKHFRXUWURRPWRWKHPHGLDGXULQJDKHDULQJ
WRVXSSUHVVWKHFRQIHVVLRQRIWKHGHIHQGDQWZKRZDVFKDUJHG
ZLWKWKHNLGQDSPXUGHURIDSURPLQHQW'D\WRQFLWL]HQDIWHUD
UDQVRPRIKDGEHHQSDLG,QLVVXLQJWKHZULW&KLHI
-XVWLFH:LOOLDP2¶1HLOZULWLQJIRUWKHFRXUWGHFODUHGWKDWLI
DIDLUDQGLPSDUWLDOWULDOFRXOGQRWEHKHOGDFKDQJHRIYHQXH
VKRXOGEHJUDQWHG,GDW FLWLQJ6KHSSDUGY0D[ZHOO
VXSUD,UYLQY'RZGVXSUD5LGHDXY/RXLVLDQDVXSUD
1HEUDVND 3UHVV $VV¶Q Y 6WXDUW 86
UHDFKHG D VLPLODU FRQFOXVLRQ ZKHQ IDFHG ZLWK WKH WHQVLRQ
EHWZHHQWKHULJKWWRDIDLUDQGLPSDUWLDOMXU\DQGWKH)LUVW
$PHQGPHQWULJKWVRIWKHPHGLDLQDKLJKO\SXEOLFL]HGPXUGHU
FDVHLQYROYLQJWKHNLOOLQJRIVL[PHPEHUVRIDIDPLO\LQD
VPDOOWRZQRISHRSOHLQ1HEUDVND7KHPHGLDKDGEHHQ
UHVWUDLQHGIURPSXEOLVKLQJWKHDFFRXQWVRIFRQIHVVLRQVE\WKH
GHIHQGDQW7KH³SULRUUHVWUDLQW´RUGHUVLVVXHGWRWKHPHGLD
ZHUHYDFDWHG
1R 5LWFKLHY5RJHUV
,QWKLVFDVHWKHWULDOFRXUWREYLRXVO\DZDUHRIWKHH[WHQVLYH
SUHWULDOSXEOLFLW\UHFRJQL]HGWKDWWKHDFWXDOYRLUGLUHZRXOG
WDNHRQJUHDWLPSRUWDQFHLQGHWHUPLQLQJZKHWKHUDIDLUDQG
LPSDUWLDOMXU\FRXOGEHLPSDQHOHG
:HWXUQQRZWRDWKRURXJKH[DPLQDWLRQRIWKHSURFHVVE\
ZKLFKSHWLWLRQHU¶VMXU\ZDVVHOHFWHG
7KHSUHWULDOSXEOLFLW\LQWKLVFDVHFRQWLQXHGDQGVKRUWO\
EHIRUH WKH MXU\ VHOHFWLRQ EHJDQ WKH 'D\WRQ 'DLO\ 1HZV
SXEOLVKHGDQDUWLFOHZLWKWKHKHDGOLQH³$QJXLVK5HYLVLWHG´
UHPLQGLQJWKHFRPPXQLW\RIWKHKRPLFLGHDQGVWDWLQJ
7KH ILUVW UHSRUW RQ -XO\ WKDW \HDUROG
6DPDQWKD5LWFKLHZDVPLVVLQJIURPKHU+HUPDQ$YHQXH
KRPH WXJJHG DW WKH KHDUWVWULQJV RI 0LDPL 9DOOH\
UHVLGHQWV
+XQGUHGV RI FRQFHUQHG SHRSOH FRQYHUJHG RQ WKH
QHLJKERUKRRG WKDW VLWV LQ WKH VKDGRZ RI WKH 2KLR
:HEVWHU6WUHHWRYHUSDVVWRMRLQWKHKXQWDQGWRFRQVROH
KHUK\VWHULFDOPRWKHU
7KUHH GD\V ODWHU WKHLU KHDUWV EURNH ZKHQ SROLFH
DQQRXQFHGWKHJLUO¶VERG\KDGEHHQIRXQGVXEPHUJHGLQ
DQHDUE\IRXQGU\SLW
$QGGD\VDIWHUWKDWWKHLUKHDUWVEXUQHGZLWKUDJH
ZKHQSROLFHDQQRXQFHG6DPDQWKD¶VPRWKHU7KHUUHVVD
-RO\QQ5LWFKLHKDGEHHQDUUHVWHGLQKHUGDXJKWHU¶V
GHDWK
1RZVL[PRQWKVDIWHU5LWFKLH¶VILUVWFDOOIRUKHOSVKH
IDFHVWKDWVDPHFRPPXQLW\DQGDVNVLWWRILQGKHUQRW
JXLOW\+HUWULDOVWDUWV0RQGD\
%HIRUHWKDWFDQKDSSHQ0RQWJRPHU\&RXQW\&RPPRQ
3OHDVH>VLF@-XGJH-RKQ.HVVOHUPXVWGHWHUPLQHZKHWKHU
LW¶V SRVVLEOH WR ILQG MXURUV FDSDEOH RI VHWWLQJ DVLGH
ZKDWHYHUWKH\NQRZDERXWWKHFDVHDQGJLYLQJ5LWFKLHD
IDLUWULDO

-- 14 of 14 --