7(11(66((%85($82):25.(56¶&203(16$7,21

:25.(56¶&203(16$7,21$33($/6%2$5' +($5'$8*867$70(03+,6

'DUOHQH1RHO 'RFNHW1R   Y    6WDWH)LOH1R ($1+ROGLQJV//&HWDO         $SSHDOIURPWKH&RXUWRI:RUNHUV¶  &RPSHQVDWLRQ&ODLPV  $OOHQ3KLOOLSV-XGJH

$IILUPHGDQG5HPDQGHG±)LOHG6HSWHPEHU

,QWKLVVHFRQGLQWHUORFXWRU\DSSHDOLQWKLVFDVHWKHHPSOR\HU DVVHUWVWKHWULDOFRXUWHUUHG LQ GHQ\LQJ LWV PRWLRQ WR WHUPLQDWH DXWKRUL]HG PHGLFDO WUHDWPHQW   (PSOR\HU IXUWKHU DUJXHVWKDWLWVPRWLRQVXSSRUWHGE\PHGLFDOUHFRUGVIURPWZRD XWKRUL]HGSK\VLFLDQVDQG DFRPSOHWHG TXHVWLRQQDLUH IURP RQHRIWKHSK\VLFLDQVZDV XQRSS RVHGDQGVKRXOGKDYH EHHQJUDQWHGDVDPDWWHURIFRXUVH8SRQFDUHIXOFRQVLGHUDWLRQ RIWKHUHFRUGZHDIILUP WKH WULDO FRXUW¶V GHFLVLRQ WKRXJK IRU GLIIHUHQW UHDVRQVWKDQ W KRVH HVSRXVHG E\ WKH WULDO FRXUWDQGUHPDQGWKHFDVHIRUDQ\IXUWKHUSURFHHGLQJVWKDWPD\ EHQHFHVVDU\

-XGJH7LPRWK\:&RQQHUGHOLYHUHGWKHRSLQLRQRIWKH$SSHDOV%R DUGLQZKLFK3UHVLGLQJ -XGJH0DUVKDOO/'DYLGVRQ,,,DQG-XGJH'DYLG)+HQVOH\MRL QHG

$OH[ % 0RUULVRQ DQG &KDUOHV ( 3LHUFH .QR[YLOOH 7HQQHVVHH I RU WKH HPSOR\HU DSSHOODQW($1+ROGLQJV//&

&KULVWRSKHU7D\ORU0HPSKLV7HQQHVVHHIRUWKHHPSOR\HHDSSHOO HH'DUOHQH1RHO

)DFWXDODQG3URFHGXUDO%DFNJURXQG

 7KLVLQWHUORFXWRU\ DSSHDO DULVHV IURPWZR DOOHJHG DFFLGHQWV UH SRUWHG E\ 'DUOHQH 1RHO 3(PSOR\HH ́ ZKLOH VKH ZRUNHG IRU ($1 +ROGLQJV //& 3(PSO R\HU ́ DW DQ DLUSRUW UHQWDO FDU IDFLOLW\  ,QWKH ILUVW DOOHJHGLQFLGHQW ZK LFK RFFXUUHG RQ -DQXDU\   (PSOR\HH UHSRUWHG VKH ZDV VWUXFN LQ WKH XSSHU EDFN E\ D G RRU WKDW KDG EHHQ RSHQHGIRUFHIXOO\E\DFRZRUNHU,QWKHVHFRQGDOOHJHGLQFLGH QW(PSOR\HHUHSRUWHGWKDW RQ-DQXDU\VKHZDVDSSURDFKLQJDQDXWRPDWLFGRRUWKDW IDLOHGWRRSHQSURSHUO\ UHVXOWLQJ LQ KHU VWULNLQJ KHU KHDG RQ WKH GRRU  3UHYLRXVO\ WK H WULDO FRXUW KDG RUGHUHG (PSOR\HUWRSURYLGH(PSOR\HHSDQHOVRISK\VLFLDQVIRUWKHVHDOO HJHGLQFLGHQWVDQGZH

DIILUPHGWKRVHRUGHUV 

 $IWHUHYDOXDWLRQVE\WZRSK\VLFLDQV(PSOR\HHVHOHFWHGIURPWKH SDQHOV(PSOR\HU ILOHG D PRWLRQ WR WHUPLQDWH DXWKRUL]HG PHGLFDO WUHDWPHQW DUJXL QJ WKDW HDFK RI WKH DXWKRUL]HGSK\VLFLDQVKDGH[SUHVVHGDQRSLQLRQWKDW(PSOR\HHGL GQRW UHDVRQDEO\QHHG PHGLFDO WUHDWPHQW DV D UHVXOW RI WKH DOOHJHG ZRUN DFFLGHQWV  ( PSOR\HU DWWDFKHG WR LWV PRWLRQ VLJQHGPHGLFDO UHFRUGV IURP HDFK SK\VLFLDQ(PSOR\HH GL G QRW UHVSRQGWRWKH PRWLRQ REMHFWWRWKHWULDO FRXUW¶V FRQVLGHUDWLRQ RIWKH VLJQHG PHGLFDO UHFRUGV RU RIIHU DQ\FRXQWHUYDLOLQJPHGLFDOHYLGHQFH&RQVHTXHQWO\WKHWULDOF RXUWFRQVLGHUHGWKHPRWLRQ XQRSSRVHG

 )ROORZLQJDUHYLHZRIWKHUHFRUGZLWKRXWDQHYLGHQWLDU\KHDULQ J see 7HQQ&RGH $QQ  G WKH WULDO FRXUW GHQLHG (PSOR\HU¶V PRWLRQ  FRQFOXGLQJ LW ZDV 3LQDSSURSULDWHWRDGGUHVVWKHPHULWVRIWKHWUHDWLQJGRFWRUV¶R SLQLRQVLQDPRWLRQKHDULQJ DQG SRVVLEO\ μPRGLI\¶ LWV LQWHUORFXWRU\ RUGHU ́  7KH WULDO FRXU W IXUWKHU UHDVRQHG WKDW 3GLVFRYHU\LVLQFRPSOHWHDQGWKHSDUWLHVKDYH\HWWRXQGHUWDNH PHGLFDOSURRI>ERWKRI@ ZKLFKDUHUHTXLUHGIRUWKH&RXUWWRDGMXGLFDWHWKHFODLPRQLWV PHULWV ́)LQDOO\WKHWULDO FRXUWQRWHGWKDW3>W@RSURFHHGYLDDPRWLRQZRXOGJUDIWXSRQWK HUXOHVRIWKLV&RXUWZKDW DPRXQWV WR D VXPPDU\ MXGJPHQW SURFHHGLQJ RQ D FODLP GHHPHG FRPS HQVDEOH DW DQ H[SHGLWHG KHDULQJZKHQ RQO\ GHQLHG FODLPV DUH DPHQDEOHWR VXFK PRWLRQV ́(PSOR\HU KDVDSSHDOHG

6WDQGDUGRI5HYLHZ

7KH VWDQGDUG ZH DSSO\ LQ UHYLHZLQJ D WULDO FRXUW¶V GHFLVLRQ SUH VXPHV WKDW WKH FRXUW¶VIDFWXDOILQGLQJVDUHFRUUHFWXQOHVVWKHSUHSRQGHUDQFHR IWKHHYLGHQFHLVRWKHUZLVH

See  7HQQ&RGH $QQ  F  37KHUH VKDOO EH D SUH VXPSWLRQWKDWWKH ILQGLQJV DQG FRQFOXVLRQV RI WKH ZRUNHUV¶ FRPSHQVDWLRQ MXGJH DUH  FRUUHFW XQOHVV WKH SUHSRQGHUDQFHRIWKHHYLGHQFHLVRWKHUZLVH ́+RZHYHUZHUHY LHZTXHVWLRQVRIODZ de

novo  ZLWK QR SUHVXPSWLRQ RI FRUUHFWQHVV  See Am. Mining Ins. Co. v. Campbell  1R 06&5:&7HQQ/(;,6DW
7HQQ:RUNH UV¶&RPS3DQHO 'HF3$WULDOFRXUW¶VFRQFOXVLRQVRIODZDUHUHYLHZHG de novo XSRQWKHUHFRUG ZLWK QR SUHVXPSWLRQ RI FRUUHFWQHVV ́0RUHRYHUWKHLQWHUSUHWD WLRQ DQG DSSOLFDWLRQ RI VWDWXWHV DQG UHJXODWLRQV FRQFHUQV LVVXHV RI ODZ ZKLFK ZH UHYLH Z de novo  ZLWK QR SUHVXPSWLRQ RI FRUUHFWQHVV DIIRUGHGWRWKHWULDO FRXUW¶V ILQGLQ JV  See Seiber v. Reeves  See Noel v. EAN Holdings, LLC 1RVDQG 71:UN&RPS$SS% G /(;,67HQQ:RUNHUV¶&RPS$SS%G-DQ Logging   6:G   7HQQ  Hadzic v. Averitt Express  1R  71:UN&RPS$SS%G/(;,6DW
7HQQ:RUNHUV ¶&RPS$SS%G 0D\

$QDO\VLV

 +HDULQJV RI LQWHUORFXWRU\ GLVSXWHV DUH JRYHUQHG E\ 7HQQHVVHH & RGH $QQRWDWHG VHFWLRQGZKLFKVWDWHVDVIROORZV

8SRQPRWLRQ of either party PDGHDWDQ\WLPHDIWHUDGLVSXWHFHUWLILFDWLRQ QRWLFH KDV EHHQ LVVXHG E\ D ZRUNHUV¶ FRPSHQVDWLRQ PHGLDWRU D Z RUNHUV¶ FRPSHQVDWLRQ MXGJH PD\ DW WKH MXGJH¶V GLVFUHWLRQ KHDU GLVSXWH V RYHU LVVXHVSURYLGHGLQWKHGLVSXWHFHUWLILFDWLRQQRWLFHFRQFHUQLQJ WKHSURYLVLRQ RIWHPSRUDU\GLVDELOLW\ or medical benefits RQDQH[SHGLWHGEDVLVDQGHQWHU DQLQWHUORFXWRU\ RUGHU XSRQ GHWHUPLQLQJWKDWWKHLQMXUHG HPSOR\ HH ZRXOG likely prevail DWDKHDULQJRQWKHPHULWV

7HQQ&RGH$QQGHPSKDVLVDGGHG7KXVLQFR QVLGHULQJDPRWLRQILOHG E\ HLWKHU SDUW\ VHHNLQJ LQWHUORFXWRU\ UHOLHI SULRU WR WKH RFFXU UHQFH RI D FRPSHQVDWLRQ KHDULQJ DWULDO FRXUW PXVW GHWHUPLQH ZKHWKHUWKH HPSOR\HHLVO LNHO\WR SUHYDLO RQWKDW

LVVXHDWWULDO

 )XUWKHUPRUH7HQQ&RPS5	5HJVJRYH UQVWKHPDQQHU LQZKLFKH[SHGLWHGKHDULQJVDUHFRQGXFWHG3DUDJUDSKGLVFX VVHVWKHILOLQJRIUHTXHVWV IRU H[SHGLWHG KHDULQJV E\ 3HLWKHU SDUW\ ́ 3DUDJUDSK E UHT XLUHV D SDUW\ RSSRVLQJ D PRWLRQWR3VXEPLWDOOGRFXPHQWVGHPRQVWUDWLQJWKHPRYLQJ SDUW\LVQRWHQWLWOHGWRWKH UHTXHVWHG UHOLHI QR ODWHU WKDQ WHQ  EXVLQHVV GD\V EHIRUH WK H GDWH RI WKH H[SHGLWHG KHDULQJ ́,QWKHHYHQWWKHFRXUWHOHFWVWRUHVROYHWKHPRWLRQ ZLWKRXWDKHDULQJ3WKHFOHUN VKDOODOVRVHQGLQIRUPDWLRQWRWKHSDUWLHVGHWDLOLQJWKHDFWLRQ VUHTXLUHGWRSUHVHQWWKHFDVH WRWKHMXGJHIRUDGHFLVLRQRQWKHUHFRUG ́7HQQ&RPS5	5 HJVI ,Q DGGLWLRQ SDUDJUDSK  SURYLGHV WKDW DW DQ H[SHGLWHG KHDUL QJ 3OHWWHUV RU ZULWWHQ VWDWHPHQWV DGGUHVVLQJ PHGLFDO FDXVDWLRQ WKDW KDYH EHHQ VLJQHG E \ D GRFWRU VKDOO EH DGPLVVLEOHHYLGHQFH ́7HQQ&RPS5	5HJV



 ,Q DGGLWLRQ SDUDJUDSK  RIWKDW UHJXODWLRQ GLVFXVVHV FLUFXP VWDQFHVLQ ZKLFK D SDUW\PD\HOHFWWRILOHDPRWLRQIRUVXPPDU\MXGJPHQWIROORZLQJ DQH[SHGLWHGKHDULQJDW ZKLFKWKHWULDOFRXUWGHQLHGEHQHILWV3RQWKHJURXQGVRIFRPSHQ VDELOLW\ ́7HQQ&RPS 5 	 5HJV   3,I WKH GHQLDO RQ WKH JURXQGV RI  FRPSHQVDELOLW\ LV DIILUPHGE\WKHDSSHDOVERDUGRULIQRDSSHDOLVWDNHQWKHHPS OR\HU may ILOHDPRWLRQIRU VXPPDU\ MXGJPHQW     ́  Id.  HPSKDVLV DGGHG  7KXV ZKLOH WKLV UXOH GHVFULEHV SDUWLFXODU FLUFXPVWDQFHV LQ ZKLFK D SDUW\ may choose  WR ILOH D PRWLRQ IRU VXPPDU\ MXGJPHQWLWGRHVQRW UHVWULFWWKH ILOLQJRIPRWLRQV IRUVXPPDU \MXGJPHQWRUDQ\RWKHU PRWLRQVDVPD\EHDOORZHGE\5XOHRIWKH7HQQHVVHH5XOHVRI &LYLO3URFHGXUHRUDQ\ RWKHUDSSOLFDEOHVWDWXWHVRUUXOHV

 ,QLWVRUGHUWKHWULDOFRXUWFRQFOXGHGWKDWLWZDVXQDEOHWR HQWHUWDLQ3ZKDWDPRXQWV WRDVXPPDU\MXGJPHQWSURFHHGLQJ ́EHFDXVHSXUVXDQWWR7HQQ&R PS5	5HJV VXPPDU\MXGJPHQWPRWLRQVFDQRQO\EHILOHGLQFLU FXPVWDQFHVZKHUHDWULDO FRXUW KDV SUHYLRXVO\ GHQLHG DQ HPSOR\HH¶V FODLP DW D SULRU H[SH GLWHG KHDULQJ  :H GLVDJUHH ZLWK WKLV UHVWULFWLYH LQWHUSUHWDWLRQ RI WKH UHJXODWLRQ  ZKHQ UHDG LQ FRQMXQFWLRQ

ZLWK 5XOH  RI WKH 7HQQHVVHH 5XOHV RI &LYLO 3URFHGXUH  ,QVWHD G ZH FRQFOXGH WKDW SDUWLHVZKRFKRRVHWRVHHNUHOLHIIURPWKHFRXUWSULRUWRDWUL DOKDYHVHYHUDOFKRLFHV2QH RSWLRQ LV WR ILOH DQ LQWHUORFXWRU\ PRWLRQ DV GHVFULEHG LQ 7HQQH VVHH &RGH $QQRWDWHG VHFWLRQGDQG7HQQ&RPS5	5HJV $QRWKHURSWLRQLV WR ILOH D PRWLRQ IRU VXPPDU\MXGJPHQW 3DW DQ\WLPH DIWHUWKH H[ SLUDWLRQ RIWKLUW\  GD\VIURPWKHFRPPHQFHPHQWRIWKHDFWLRQ ́7HQQ5&LY3 0RUHRYHUDVZH SUHYLRXVO\ VWDWHGDWULDOFRXUW KDV EURDG GLVFUHWLRQWRFRQWUR OWKH SDFH RIOLWLJDWLRQDQG VKRXOG 3JLYH HDFK VLGH D UHDVRQDEOH DQG PHDQLQJIXO RSSRUWXQLW\ ́  WR SUHSDUH LWV FDVH EHIRUHVHWWLQJDQ\VXFKPRWLRQIRUDKHDULQJ Hollis v. Komyo Am. 1R 71:UN&RPS$SS%G/(; ,6DW
7HQQ:RUNHUV¶&R PS$SS%G0DU 

 8SRQFRQVLGHUDWLRQRIWKHIRUHJRLQJZHFRQFOXGH(PSOR\HU¶VPR WLRQWRWHUPLQDWH PHGLFDO EHQHILWV IDOOV ZLWKLQ WKH VFRSH RI 7HQQHVVHH &RGH $QQRW DWHG VHFWLRQ  G DQG 7HQQ &RPS 5 	 5HJV   ,W ZDV  QRW D PRWLRQ IRU SDUWLDO VXPPDU\MXGJPHQW SXUVXDQWWR7HQQ5&LY3 DV  VXJJHVWHG E\WKHWULDO FRXUWEXWZDVLQVWHDGDUHTXHVWIRULQWHUORFXWRU\UHOLHIDQGV KRXOGKDYHEHHQHYDOXDWHGLQ OLJKWRIWKHVWDQGDUGIRUH[SHGLWHGKHDULQJVPDQGDWHGE\VHFWLR QG

 1HYHUWKHOHVV ZH FRQFOXGHWKDWWKHWULDO FRXUW¶V HUURULQ QRW WUHDWLQJ (PSOR\HU¶V PRWLRQDVDUHTXHVWIRULQWHUORFXWRU\UHOLHISXUVXDQWWR7HQQHV VHH&RGH$QQRWDWHGVHFWLRQ G ZDV KDUPOHVV XQGHU WKH FLUFXPVWDQFHV SUHVHQWHG LQ W KLV FDVH DQG WKDW WKH WULDOFRXUWGLGQRWHUULQGHQ\LQJ(PSOR\HU¶VPRWLRQ)LUVW( PSOR\HU¶VDUJXPHQWWKDWDQ XQRSSRVHG PRWLRQ PXVW EH JUDQWHG DV D PDWWHU RI FRXUVH LV LQFRU UHFW  :H KDYH SUHYLRXVO\ H[SODLQHG WKDW 3>Q@HLWKHU 5XOH % >RI WKH WULDO  FRXUW¶V 3UDFWLFHV DQG 3URFHGXUHV@QRUDQ\RWKHUDSSOLFDEOHUXOHSURKLELWVDWULDOFRX UWIURPGHFLGLQJPRWLRQVRQ WKHLU PHULWV  /LNHZLVH WKH %XUHDX
V UHJXODWLRQV GR QRW SURKLE LW D WULDO FRXUW IURP FRQVLGHULQJWKHPHULWVRIDQXQRSSRVHGPRWLRQ ́ Valladares v. Transco Prods., Inc. 1R  DQG   71 :UN &RPS $SS %G /(;, 6  DW 
 7HQQ:RUNHUV¶&RPS$SS%G-XO\7KLVLVQRWWR VXJJHVWKRZHYHUWKDWD WULDO FRXUW FDQQRW FRQVLGHU WKH IDFW WKDW D PRWLRQ LV XQRSSRVHG  LQ GHFLGLQJ ZKHWKHU WR JUDQWRUGHQ\WKHPRWLRQ7KXVDSDUW\DFWVDWLWVSHULOZKHQ HOHFWLQJQRWWRUHVSRQGWRD SDUW\¶VUHTXHVWIRUDWULDOFRXUWWRWDNHVRPHDFWLRQ  6HFRQGWKHPHGLFDOUHFRUGVDQGTXHVWLRQQDLUHUHVSRQVHVSURYLG HGE\(PSOR\HULQ VXSSRUWRILWVPRWLRQZHUHHTXLYRFDODVWRWKHQHHGIRUDGGLWLR QDOPHGLFDOWUHDWPHQW'U 1DGHO¶V0DUFK  UHSRUWWKHPRVW UHFHQWPHGLFDO UHSRUWF RQWDLQHGLQWKH UHFRUG LQGLFDWHG (PSOR\HH ZDV EHQHILWWLQJ IURP SK\VLFDO WKHUDS\ DQG K H UHFRPPHQGHG DGGLWLRQDOWKHUDS\DWWKDWWLPH+HDOVRFKDQJHG(PSOR\HH¶VPH GLFDWLRQV)XUWKHUPRUH DOWKRXJK 'U 1DGHOLQGLFDWHGLQ UHVSRQVHWR (PSOR\HU¶V TXHVWLRQ QDLUHWKDW (PSOR\HH¶V FRQGLWLRQZDVQRWOLNHO\WKH UHVXOWRIDZRUNUHODWHGDFFLGHQW KHFODULILHGWKLV UHVSRQVH E\ZULWLQJ3>V@KHPD\KDYHKDGVRPH>LQFUHDVHLQ@SDLQ>DQG@L QMXU\VXSHULPSRVHGRQD FKURQLFSUREOHP ́7KXV(PSOR\HUGLGQRWHVWDEOLVKDWWKLVLQW HUORFXWRU\VWDJHRIWKHFDVH WKDWLWZDVOLNHO\WRSUHYDLODWWULDOLQSURYLQJ(PSOR\HHKDV QRQHHGIRUUHDVRQDEOHDQG QHFHVVDU\IXWXUHPHGLFDOFDUHFDXVDOO\UHODWHGWRWKHZRUNDFFL GHQWV

&RQFOXVLRQ

 %DVHGRQWKHIRUHJRLQJZHDIILUPWKHWULDOFRXUW¶VRUGHUDQG UHPDQGWKHFDVHIRU DQ\IXUWKHUSURFHHGLQJVWKDWPD\EHQHFHVVDU\7(11(66((%85($82):25.(56¶&203(16$7,21

:25.(56¶&203(16$7,21$33($/6%2$5'

'DUOHQH1RHO 'RFNHW1R   

Y  
 6WDWH)LOH1R

   ($1+ROGLQJV//&HWDO

&(57,),&$7(2)6(59,&(

, KHUHE\ FHUWLI\ WKDW D WUXH DQG FRUUHFW FRS\ RI WKH $SSHDOV %R DUG¶V GHFLVLRQ LQ WKH UHIHUHQFHGFDVHZDVVHQWWRWKHIROORZLQJUHFLSLHQWVE\WKHIRO ORZLQJPHWKRGVRIVHUYLFH

RQWKLVWKH WK GD\RI 6HSWHPEHU 

1DPH &HUWLILHG

0DLO )LUVW&ODVV

0DLO 9LD

)D[ )D[

1XPEHU 9LD

(PDLO (PDLO$GGUHVV

&KULVWRSKHU/7D\ORU ; FWD\ORU#WD\ORUWRRQFRP

$OH[%0RUULVRQ ; DEPRUULVRQ#PLMVFRP

$OOHQ3KLOOLSV-XGJH ; 9LD(OHFWURQLF0DLO
.HQQHWK06ZLW]HU &KLHI-XGJH ; 9LD(OHFWURQLF0DLO

3HQQ\6KUXP&OHUN

&RXUWRI:RUNHUV¶ &RPSHQVDWLRQ&ODLPV ; 3HQQ\3DWWHUVRQ6KUXP#WQJRY

-HDQHWWH%DLUG &OHUN:RUNHUV¶&RPSHQVDWLRQ$SSHDOV%RDUG )UHQFK/DQGLQJ'U6WH% 1DVKYLOOH71 7HOHSKRQH

(OHFWURQLF0DLO :&$SSHDOV&OHUN#WQJRY - HDQHWWH%DLUG 1