Court Opinion

ID: 2969820
Source: CourtListenerOpinion
Date Created: 2015-09-22 15:57:59.522582+00
Date Added: 2024-06-11T11:42:15.159105
License: Public Domain

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 DS

81,7('67$7(6&28572)$33($/6
                   )257+(6,;7+&,5&8,7
                     BBBBBBBBBBBBBBBBB

 %21,7$ %52'< 0$5< /28          ;
 .((121DQG$/(;                 
 /(%('29<&+                      
                                     1R
          3ODLQWLIIV$SSHOODQWV 
                                   !
                                  
            Y                    
                                  
 &,7< 2) 0$621DQG/255,          
 0&&$//$                         
         'HIHQGDQWV$SSHOOHHV 
                                  
                                 1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
  IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV
 1Rn5LFKDUG$(QVOHQ&KLHI'LVWULFWsXGJH
                    $UJXHGsDQXDU\
               'HFLGHGDQG)LOHG0D\
  %HIRUH%2**6DQG0225(&LUFXLWsXGJHV&2+1
                6HQLRU'LVWULFWsXGJH

    
     7KH +RQRUDEOH $YHUQ &RKQ 6HQLRU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

                                    
      %URG\HWDOY&LW\RI0DVRQHWDO      1R      1R                %URG\HWDOY&LW\RI0DVRQHWDO                    

                     BBBBBBBBBBBBBBBBB                              )GWK&LUTXRWLQJ6WHYHQVY+XQW
                                                                    )GWK&LU7KLVUHTXLUHVDYHU\
                          &2816(/                                   VWURQJ VKRZLQJ  ,G m7KH DGPLQLVWUDWLYH DFWLRQ ZLOO
                                                                    ZLWKVWDQG VXEVWDQWLYH GXH SURFHVV DWWDFN XQOHVV LW m
LV QRW
$5*8('&XUWLV5 +DGOH\:,//,1*+$0	&27(                     VXSSRUWDEOH RQ DQ\ UDWLRQDO EDVLV
l RU LV m
ZLOOIXO DQG
(DVW/DQVLQJ0LFKLJDQIRU$SSHOODQWV0DUFLD/+RZH            XQUHDVRQLQJDFWLRQZLWKRXWFRQVLGHUDWLRQDQGLQGLVUHJDUGRI
s2+1621 526$7, /D%$5*( $6(/7<1( 	 ),(/'                    WKHIDFWVRUFLUFXPVWDQFHVRIWKHFDVH
lTXRWLQJ*UHHQKLOOY
)DUPLQJWRQ +LOOV 0LFKLJDQ IRU $SSHOOHH  21 %5,()         %DLOH\)GQWK&LU
&XUWLV5+DGOH\:,//,1*+$0	&27(j(DVW/DQVLQJ
0LFKLJDQ IRU $SSHOODQWV  0DUFLD / +RZH s2+1621            +HUHWKHGLVWULFWFRXUWZDVFRUUHFWLQFRQFOXGLQJWKDWmWKH
526$7, /D%$5*( $6(/7<1( 	 ),(/' )DUPLQJWRQ                  YDULRXVGHFLVLRQVRIWKH&LW\WKURXJKLWVERDUGVDQGFRXQFLOV
+LOOV0LFKLJDQIRU$SSHOOHH                                      DQGRIILFHUVKDYHDVXIILFLHQWIDFWXDOEDVLVVRDVWRTXDOLI\DV
                                                                    UDWLRQDODQGOHJLWLPDWHVWDWHDFWLRQls$7KHDSSURYDORI
                     BBBBBBBBBBBBBBBBB                              WKH VSHFLDO XVH SHUPLW DSSHDUV WR KDYH FRPH RQO\ DIWHU
                                                                    VLJQLILFDQWFRQVLGHUDWLRQRIWKHDUJXPHQWVIRUDQGDJDLQVWRQ
                         23,1,21                                    QXPHURXV LVVXHV ZHUH FRQVLGHUHG  (QJLQHHUV IRU WKH &LW\
                     BBBBBBBBBBBBBBBBB                              FRPPHQWHG RQ WKH GUDLQDJH LVVXH DQG WUDIILF IORZ DQG
                                                                    SUHYLRXV XVH RI WKH SURSHUW\ ZDV FRQVLGHUHG   (YHQ LI ZH
    &2+16HQLRU'LVWULFWsXGJH                                    WKRXJKWWKDWWKHGHFLVLRQZDVLQFRUUHFWWKHGHFLVLRQGRHVQRW
                                ,                                  DSSHDUWREHDUELWUDU\RULUUDWLRQDO$FFRUGLQJO\WKHUHLVQR
                                                                    YLRODWLRQRIVXEVWDQWLYHGXHSURFHVV
  7KLVFDVHDULVHVIURPWKH&LW\RI0DVRQ
VJUDQWRIDVSHFLDO
XVH SHUPLW DOORZLQJ D SURSHUW\ RZQHU WR RSHUDWH D EHDXW\                                              ,9
VDORQLQDUHVLGHQWLDOQHLJKERUKRRGDQGSDYHWKHUHDU\DUGIRU         *LYHQ WKDW SODLQWLIIV ZHUH DOORZHG WR SDUWLFLSDWH LQ WKH
SDUNLQJ  3ODLQWLIIV DUH QHLJKERULQJ SURSHUW\ RZQHUV ZKR     VSHFLDO XVH SHUPLW GHFLVLRQ SURFHVV DQG WKDW WKH &LW\
FODLPWKH\KDYHVXIIHUHGGDPDJHFDXVHGE\ZDWHUUXQRIIIURP         VXIILFLHQWO\FRQVLGHUHGHYLGHQFHDQGIDFWVSHUWDLQLQJWRWKH
WKHSDUNLQJORWSDYHPHQW3ODLQWLIIV
VXLWLQWKHGLVWULFWFRXUW   VXUURXQGLQJODQGEHIRUHDSSURYLQJWKHVSHFLDOXVHSHUPLWDQG
FODLPHGWKDWWKH&LW\
VJUDQWRIWKHVSHFLDOXVHSHUPLWDQGWKH     DOORZLQJWKHSDUNLQJORWWREHSDYHGWKHGLVWULFWFRXUWGLGQRW
DSSURYDOSURFHVVHPSOR\HGZKLFKDOORZHGWKHPWRVSHDNDW           HUULQILQGLQJWKDWSODLQWLIIV
SURFHGXUDODQGVXEVWDQWLYHGXH
RQO\RQH3ODQQLQJ&RPPLVVLRQPHHWLQJYLRODWHGWKHLUIHGHUDO        SURFHVVULJKWVZHUHQRWYLRODWHG
SURFHGXUDO DQG VXEVWDQWLYH GXH SURFHVV ULJKWV DV ZHOO DV
YDULRXV VWDWH ODZV  7KH GLVWULFW FRXUW JUDQWHG VXPPDU\
MXGJPHQWLQIDYRURIWKH&LW\RQWKHJURXQGVWKDWHYHQLIWKH
&LW\GLGQRWFRPSO\ZLWKDOORIWKHUHOHYDQWVWDWHVWDWXWHVDQG
ORFDO RUGLQDQFHV SODLQWLIIV ZHUH DIIRUGHG QRWLFH DQG DQ
RSSRUWXQLW\WREHKHDUGLQWKHFRXUVHRIWKHDSSURYDOSURFHVV
SURFHGXUDO GXH SURFHVV DQG WKH &LW\
V GHFLVLRQV ZHUH          
UDWLRQDO DQG VXSSRUWHG E\ WKH UHFRUG VXEVWDQWLYH GXH                 7KH   &LW\ PDNHV WKH DGGLWLRQDO DUJXPHQWV WKDW SODLQWLIIV
 FODLPV DUH

SURFHVV7KHGLVWULFWFRXUWGHFOLQHGWRH[HUFLVHVXSSOHPHQWDO     EDUUHG   E\   UHV   MXGLFDWD   DQG   IDLOXUH   WR   H[KDXVW   DGPLQLVWUDWLYH   UHPHGLHV

MXULVGLFWLRQRYHUWKHVWDWHODZFODLPVDQGUHPDQGHGWKHPEDFN       +RZHYHU LQ OLJKW RI WKH IRUHJRLQJ GLVFXVVLRQ WKH &RXUW QHHG QRW DGGUHVV

                                                                    WKHP
    %URG\HWDOY&LW\RI0DVRQHWDO            1R       1R                 %URG\HWDOY&LW\RI0DVRQHWDO                             

                                                                        WRWKHVWDWHFRXUW)RUWKHUHDVRQVWKDWIROORZZH$)),50
                                                                          WKHGLVWULFWFRXUWGHFLVLRQ
   3ODLQWLIIV
 DUJXPHQW WKDW WKH\ ZHUH GHQLHG D PHDQLQJIXO
KHDULQJ LV XQSHUVXDVLYH  $OWKRXJK SODLQWLIIV GLG QRW IXOO\                                                   ,,
SDUWLFLSDWHDWHYHU\VWDJHRI0F&DOOD
VDSSOLFDWLRQSURFHVVLW
LVXQGLVSXWHGWKDWSXEOLFFRPPHQWZDVDOORZHGRQ0F&DOOD
V                                                            $
DSSOLFDWLRQ IRU D VSHFLDO XVH SHUPLW DW WKH 3ODQQLQJ
&RPPLVVLRQPHHWLQJDWZKLFKLWZDVLQLWLDOO\FRQVLGHUHG$W               ,Q 0DUFK  /RUUL 0F&DOOD 0F&DOOD VRXJKW WR
WKH3ODQQLQJ&RPPLVVLRQPHHWLQJ/HEHGRY\FKVSRNHmXQWLO                  SXUFKDVH SURSHUW\ ORFDWHG DW  (DVW $VK LQ 0DVRQ
KH KDG VDLG HYHU\WKLQJ KH ZDQWHG WR VD\l  'HSRVLWLRQ RI        0LFKLJDQ3ODLQWLIIV%RQLWD%URG\0DU\/RX.HHQRQDQG
/HEHGRY\FK DW S  s$   )ROORZLQJ WKH KHDULQJ            $OH[/HEHGRY\FKFROOHFWLYHO\SODLQWLIIVDUHDOOQHLJKERULQJ
/HEHGRY\FKDOVRVXEPLWWHGDGGLWLRQDOLQIRUPDWLRQLQZULWLQJ               SURSHUW\ RZQHUV $W WKH WLPH 0F&DOOD ZDV ORRNLQJ DW WKH
WRWKH3ODQQLQJ&RPPLVVLRQ6LPSO\EHFDXVH/HEHGRY\FK                    SURSHUW\ WKH QHLJKERUKRRG ZDV ]RQHG UHVLGHQWLDO ZLWK
ZDVQRWDOORZHGWRVSHDNDWVXEVHTXHQWPHHWLQJVHYHQLIKH               VXUURXQGLQJ EORFNV SDUWLDOO\ ]RQHG IRU FRPPHUFLDO XVH
GLVDJUHHGZLWKLQIRUPDWLRQWKDWZDVEHLQJGLVFXVVHGGLGQRW              0F&DOODKRZHYHUZDQWHGWRRSHUDWHDEHDXW\VDORQRQWKH
YLRODWHGXHSURFHVV                                                    SURSHUW\ VR VKH DSSOLHG WR WKH &LW\ RI 0DVRQ 3ODQQLQJ
                                                                          &RPPLVVLRQLQ0DUFKIRUDVSHFLDOXVHSHUPLW
   $OWKRXJKSODLQWLIIVGLVSXWHWKHRYHUDOOFRQFOXVLRQWKDWWKH
&LW\ UHDFKHG WKH HYLGHQFH LQ WKH UHFRUG LQGLFDWHV WKDW              8QGHUWKH&LW\RI0DVRQ
V=RQLQJ2UGLQDQFH$UWLFOHD
FRQFOXVLRQ ZDV WKH UHVXOW RI DQ LPSDUWLDO LQTXLU\ ZKLFK           VSHFLDO XVH SHUPLW LV UHTXLUHG IRU DOO FRQGLWLRQDO XVHV RI
VDWLVILHVWKHUHTXLUHPHQWVRIGXHSURFHVV%H\RQGWKHLUEDOG             SURSHUW\s$$QDSSOLFDWLRQIRUDVSHFLDOXVHSHUPLWLV
DVVHUWLRQVSODLQWLIIVKDYHQRWGHPRQVWUDWHGWKDWDQ\RIWKH              ILOHG ZLWK WKH 3ODQQLQJ &RPPLVVLRQ s$   (DFK
DFWLRQVE\WKH3ODQQLQJ&RPPLVVLRQWKH=%$RUWKH=RQLQJ                DSSOLFDWLRQPXVWLQFOXGHVSHFLILHGGRFXPHQWVDQGLQIRUPDWLRQ
$GPLQLVWUDWRU ZDV WKH UHVXOW RI IDYRULWLVP RU VSHFLDO              EHIRUHLWZLOOEHDFFHSWHGE\WKH3ODQQLQJ&RPPLVVLRQDQG
WUHDWPHQW  (YHQ LI 0F&DOOD
V SRVLWLRQ ZDV IDYRUHG E\ WKH        PXVWFRPSO\ZLWKWKHVDPHVXEVWDQWLYHUHTXLUHPHQWVDVDQ
&LW\LWGRHVQRWHVWDEOLVKLPSURSHUELDV                              DSSOLFDWLRQIRUDEXLOGLQJSHUPLWLQFOXGLQJKDYLQJDVFDOHG
                                                                          VLWHOD\RXWSODQs$
  )LQDOO\ SODLQWLIIV ZHUH DIIRUGHG DQ RSSRUWXQLW\ WR VHHN
UHYLHZLQWKHVWDWHFRXUWEXWFKRVHQRWWRSXUVXHWKHLUFODLPV             0F&DOOD
V DSSOLFDWLRQ ZKLFK LQFOXGHG RQO\ D URXJK
EH\RQG DWWHPSWLQJ WR HQMRLQ WKH SDYLQJ RI WKH SDUNLQJ ORW       GUDZLQJ RI WKH EXLOGLQJ DQG IXWXUH SDUNLQJ VSDFHV QRW D
$FFRUGLQJO\ WKHUH ZDV QR YLRODWLRQ RI SURFHGXUDO GXH              VFDOHG OD\RXW SODQ ZDV GLVFXVVHG E\ WKH 3ODQQLQJ
SURFHVV                                                                  &RPPLVVLRQ DW D SXEOLF PHHWLQJ KHOG RQ $SULO  
                                                                          3ODLQWLII /HEHGRY\FK DSSHDUHG DW WKH PHHWLQJ DQG YRLFHG
                  '6XEVWDQWLYH'XH3URFHVV                             VHYHUDO FRQFHUQV  'HFLGLQJ WKDW LW QHHGHG DGGLWLRQDO
  7KLV &RXUW KDV KHOG WKDW WR VXVWDLQ D VXEVWDQWLYH GXH
SURFHVVFODLPLQWKHFRQWH[WRI]RQLQJDGPLQLVWUDWLYHDFWLRQ                
mDSODLQWLIIPXVWVKRZWKDWWKHVWDWHDGPLQLVWUDWLYHDJHQF\KDV                ,W   LV   XQGLVSXWHG   WKDW   RSHUDWLQJ

                                                                                                                $00
                                                                                                                            D   KDLU   VDORQ   LV   D   FRQGLWLRQDO    XVH

EHHQ JXLOW\ RI 
DUELWUDU\ DQG FDSULFLRXV DFWLRQ
 LQ WKH VWULFW
                                                                          DOORZHG XQGHU WKH 2UGLQDQFH                =RQLQJ 2UGLQDQFH $UWLFOH                 s$ 

VHQVH PHDQLQJ 
WKDW WKHUH LV QR UDWLRQDO EDVLV IRU WKH          
>DGPLQLVWUDWLYH@GHFLVLRQ
l3HDUVRQY&LW\RI*UDQG%ODQF
                                                                               m3XEOLF      PHHWLQJl   UHIHUV   WR    D   PHHWLQJ      ZKLFK    LV      RSHQ   IRU   SXEOLF

                                                                          DWWHQGDQFH QRW DOO SXEOLF PHHWLQJV DOORZ IRU SXEOLF FRPPHQW KRZHYHU
          %URG\HWDOY&LW\RI0DVRQHWDO                             1R            1R         %URG\HWDOY&LW\RI0DVRQHWDO       

LQIRUPDWLRQEHIRUHLWFRXOGUHVROYH0F&DOOD
VDSSOLFDWLRQWKH                                       WKH&LW\WKURXJKWKH3ODQQLQJ&RPPLVVLRQWKH&LW\&RXQFLO
3ODQQLQJ&RPPLVVLRQYRWHGWRWDEOHWKHLVVXHXQWLOWKHQH[W                                          DQG WKH =%$ IDLOHG WR IROORZ HVWDEOLVKHG JXLGHOLQHV LQ
PHHWLQJDQGVDLGWKDWSXEOLFFRPPHQWRQWKHDSSOLFDWLRQZDV                                          GHFLGLQJ0F&DOOD
VDSSOLFDWLRQVIRUDVSHFLDOXVHSHUPLWDQG
FORVHG7KHSXEOLFZDVKRZHYHULQYLWHGWRVXEPLWDGGLWLRQDO                                       WKHEXLOGLQJSHUPLWVQHFHVVDU\WRLQVWDOODSDYHGSDUNLQJORW
ZULWWHQLQIRUPDWLRQLQWKHLQWHULPs$                                                    m9LRODWLRQRIDVWDWH
VIRUPDOSURFHGXUHKRZHYHUGRHVQRWLQ
                                                                                                     DQGRILWVHOILPSOLFDWHFRQVWLWXWLRQDOGXHSURFHVVFRQFHUQVl
  2Q0D\WKH3ODQQLQJ&RPPLVVLRQKHOGDUHJXODU                                            3XULVFKY7HQQHVVHH7HFK8QLY)GWK
PHHWLQJ$IWHUKHDULQJIURPWKH&LW\$WWRUQH\WKH3ODQQLQJ                                         &LUFLWLQJ/HYLQHY7RUYLN)GWK
&RPPLVVLRQYRWHGWRJUDQW0F&DOODWKHVSHFLDOXVHSHUPLW                                             &LUVWDWLQJWKDW>D@VWDWHFDQQRWEHVDLGWRKDYHD
XSRQWKUHHFRQGLWLRQVEHLQJVDWLVILHG$OWKRXJK/HEHGRY\FK                                         IHGHUDOGXHSURFHVVREOLJDWLRQWRIROORZDOORILWVSURFHGXUHV
ZDV SUHVHQW DW WKH PHHWLQJ WKH 3ODQQLQJ &RPPLVVLRQ                                           VXFKDV\VWHPZRXOGUHVXOWLQWKHFRQVWLWXWLRQDOL]LQJRIHYHU\
GHFOLQHGWRDOORZKLPWRVD\DQ\WKLQJUHPLQGLQJKLP WKDW                                           VWDWH UXOH DQG ZRXOG QRW EH DGPLQLVWUDEOH  7KXV WKH
SXEOLF FRPPHQW RQ 0F&DOOD
V DSSOLFDWLRQ KDG EHHQ FORVHG                                       GLVWULFWFRXUWFRUUHFWO\IUDPHGWKHLVVXHDVZKHWKHUSODLQWLIIV
DIWHU WKH SUHYLRXV PHHWLQJ 7KH 3ODQQLQJ &RPPLVVLRQ                                           ZHUHDIIRUGHGWKHSURFHVVGXHWRSURWHFWWKHLUSURSHUW\ULJKWV
KRZHYHUDOORZHG/HEHGRY\FKWRVXEPLWWKHQRWHVWKDWKHKDG                                          DVRSSRVHGWRZKHWKHUWKH&LW\QHFHVVDULO\FRQIRUPHGWRHDFK
SUHSDUHGLQDQWLFLSDWLRQRIVSHDNLQJDWWKHPHHWLQJs$                                        RIWKHVWDWHDQGFLW\SURFHGXUDOUHTXLUHPHQWV

                                                                                                       )XUWKHU>W@KHIRUPDOLW\DQGSURFHGXUDOUHTXLVLWHVIRUWKH
   /HEHGRY\FK DSSHDOHG WKH &RPPLVVLRQ
V GHFLVLRQ WR WKH                                        KHDULQJ FDQ YDU\ GHSHQGLQJ XSRQ WKH LPSRUWDQFH RI WKH
&LW\&RXQFLODVSURYLGHGXQGHUWKH&LW\
V=RQLQJ2UGLQDQFH                                        LQWHUHVWV LQYROYHG DQG WKH QDWXUH RI WKH VXEVHTXHQW
s$2QsXQHWKH&LW\&RXQFLOFRQGXFWHG                                           SURFHHGLQJV%RGGLH86DW7KLV&RXUWKDVKHOG
D SXEOLF PHHWLQJ RQ /HEHGRY\FK
V DSSHDO LPPHGLDWHO\                                           WKDW LQ WKH FRQWH[W RI DGPLQLVWUDWLYH ]RQLQJ GHFLVLRQV WKH
IROORZLQJDUHJXODUPHHWLQJ7KHPHHWLQJ
VDJHQGDKDGEHHQ                                          SURFHVVPXVWSURYLGHVXIILFLHQWQRWLFHWRDIIHFWHGODQGRZQHUV
SXEOLFO\QRWLFHGE\SRVWLQJRQsXQHEXWSHUVRQDO                                          DQG DQ RSSRUWXQLW\ WR EH KHDUG LQ RSSRVLWLRQ  6HH
                                                                                                     1DVLHURZVNL%URV,QY&RY&LW\RI6WHUOLQJ+HLJKWV
                                                                                                     )GWK&LU$SSO\LQJWKLVVWDQGDUGWKH
                                                                                                    GLVWULFW FRXUW FRQFOXGHG WKDW mWKH SURFHVV DIIRUGHG WKH
       7KH FRQGLWLRQV ZHUH DV IROORZV
                                                                                                     >SODLQWLIIVPHW@WKHVHUHTXLUHPHQWVl,QVRFRQFOXGLQJWKH
                                                                                                     GLVWULFW FRXUW DFNQRZOHGJHG WKH PXOWLWXGH RI SURFHGXUDO
           (QVXUH SURSHU GUDLQDJH RI SDUNLQJ ORW

           +DUG VXUIDFLQJ RI SDUNLQJ ORW

           *UDGLQJ   SODQ   WR    EH   VXEPLWWHG   WR   &LW\   RI   0DVRQ      %XLOGLQJ            YLRODWLRQVDOOHJHGE\WKHGHIHQGDQWVEXWKHOGWKDWZKHWKHUWKH
             ,QVSHFWRU                                                                              SURFHGXUHV ZHUH SURSHU ZDV D PDWWHU RI VWDWH ODZ
s$ 
                                                                                                     $FFRUGLQJO\VXFKYLRODWLRQVDUHRQO\UHOHYDQWWRRXUGHFLVLRQ
                                                                                                    KHUHLIVXFKYLRODWLRQVGHSULYHGSODLQWLIIVRIGXHSURFHVV
       =RQLQJ 2UGLQDQFH 1XPEHU  DV DPHQGHG SURYLGHV DV IROORZV

          $SSHDOV        $SSHDOV      IURP   GHFLVLRQV           RI   WKH   SODQQLQJ

      FRPPLVVLRQ       LQ   FDVHV   LQYROYLQJ   WKH    JUDQWLQJ       RU   GHQLDO   RI   DQ\

      VSHFLDO XVH SHUPLWV ZKLFK DUH UHTXLUHG SXUVXDQW WR WKLV DUWLFOH

      VKDOO EH ILOHG ZLWK WKH FLW\ FOHUN DQG GHFLGHG E\ WKH FLW\ FRXQFLO

      
       /HEHGRY\FK
V DSSHDO ZDV OLVWHG DV m5HYLHZ DQG 'HFLGH RQ $SSHDO

RI   3ODQQLQJ    &RPPLVVLRQ
V        'HFLVLRQ     WR   ,VVXH     6SHFLDO     8VH    3HUPLW     IRU

3URSHUW\ /RFDWHG DW  (DVW $VK 6WUHHW 0DVRQ 0,l s$ 
     %URG\HWDOY&LW\RI0DVRQHWDO           1R       1R           %URG\HWDOY&LW\RI0DVRQHWDO          

ZDVQRWUHTXLUHGRIWKH&LW\&RXQFLOPHHWLQJDQGLWVGDWHDQG            QRWLFH ZDV QRW VHQW WR SODLQWLIIV RU WKH RWKHU QHLJKERULQJ
DJHQGDZHUHSXEOLFO\QRWLFHG$GGLWLRQDOO\WKH&LW\&RXQFLO             SURSHUW\RZQHUV3ODLQWLIIVZHUHQRWSUHVHQWDWWKHPHHWLQJ
GHFLGHG/HEHGRY\FK
VDSSHDOORRNLQJRQO\DWWKHUHFRUGVR               0F&DOODKRZHYHUDWWHQGHGWKHPHHWLQJDQGZDVDOORZHGWR
DGGLWLRQDOFRPPHQWIURP/HEHGRY\FKZDVXQQHFHVVDU\                 DGGUHVV WKH &LW\ &RXQFLO  %DVHG RQ WKH UHFRUG EHIRUH WKH
QRWLFHRIWKHPLQXWHVRIWKHDSSURYDODQGHYHQWKHDSSHDO              3ODQQLQJ&RPPLVVLRQWKH&LW\&RXQFLOYRWHGWRDIILUPWKH
LWVHOI ZDV QRW UHTXLUHG EHFDXVH 0,&+ &203 /$:6                   3ODQQLQJ&RPPLVVLRQ
VGHFLVLRQ$OHWWHUDQQRXQFLQJWKH
LVLQDSSOLFDEOHZKHQDQDSSHDOJRHVQRWWRWKH              &LW\&RXQFLO
VGHFLVLRQZDVVHQWWR/HEHGRY\FKRQsXQH
=%$EXWWRWKH&LW\&RXQFLOZKLFKmPD\HVWDEOLVKUXOHVWR              s$3ODLQWLIIVDWWHQGHGDVXEVHTXHQW&LW\&RXQFLO
JRYHUQLWVSURFHGXUHVDVDERDUGRIDSSHDOVl0,&+ &203                PHHWLQJKHOGRQsXO\WRFRQWHVWWKH&LW\&RXQFLO
V
/$:6   DQG  SODLQWLIIV FRXOG KDYH DQG GLG         GHFLVLRQDQGZHUHDOORZHGWRVSHDN7KH\ZHUHWROGWKDWWKHLU
FKDOOHQJH WKH &LW\
V DFWLRQ LQ FLUFXLW FRXUW EXW GHFOLQHG WR   RQO\UHFRXUVHZDVWRJRWRWKHFLUFXLWFRXUWs$
SXUVXHWKHFDVH
                                                                                                           %
   ,QVXPSODLQWLIIVDVVHUWWKDWWKH\ZHUHGHQLHGDPHDQLQJIXO
KHDULQJ DQG PHDQLQJIXO QRWLFH WKDW WKHUH ZDV IDYRULWLVP            0F&DOODSXUFKDVHGWKHSURSHUW\RQsXQHs$
VKRZQ WR 0F&DOOD DQG WKDW WKHUH ZDV D SODQ GHVLJQHG WR        DQGJRLQJIRUZDUGRQWKHFRQVWUXFWLRQRIWKHSDUNLQJ
LPSDLU WKHLU RSSRUWXQLW\ WR VHHN OHJDO UHGUHVV  3ODLQWLIIV      ORW VXEPLWWHG GUDLQDJH DQG H[FDYDWLRQ SODQV WR WKH &LW\
V
IXUWKHU FODLP WKDW WKH &LW\
V DFWLRQV ZHUH DUELWUDU\ DQG         =RQLQJ $GPLQLVWUDWRU  7KH SODQV ZHUH DSSURYHG E\ WKH
LUUDWLRQDO VXEVWDQWLYH GXH SURFHVV YLRODWLRQ  'HIHQGDQWV        =RQLQJ$GPLQLVWUDWRURQsXQH$IWHUWKHSDYLQJRI
UHVSRQGWKDWWKH&LW\
VGHFLVLRQWRJUDQWWKHVSHFLDOXVHSHUPLW         WKHSDUNLQJORWZDVFRPSOHWHGLWZDVLQVSHFWHGDQGDSSURYHG
ZDVDUDWLRQDOH[HUFLVHRILWVGLVFUHWLRQDQGSODLQWLIIVZHUH           E\ WKH =RQLQJ $GPLQLVWUDWRU RQ $XJXVW    3ODLQWLII
DIIRUGHGDGHTXDWHRSSRUWXQLW\WREHKHDUG                               .HHQRQ VXEVHTXHQWO\ DSSHDOHG WKH =RQLQJ $GPLQLVWUDWRU
V
                                                                         DSSURYDORIWKHSDYLQJWRWKH&LW\jV=RQLQJ%RDUGRI$SSHDOV
                          %sXULVGLFWLRQ                               =%$ s$   $ KHDULQJ RQ WKH DSSHDO ZDV KHOG RQ
                                                                         6HSWHPEHU   DW ZKLFK DOO WKUHH SODLQWLIIV VSRNH
   7KLVFRXUWKDVDSSHOODWHMXULVGLFWLRQSXUVXDQWWR86&
   $Q DSSHOODWH FRXUW UHYLHZV D JUDQW RI VXPPDU\
MXGJPHQWGHQRYR6PLWKY$PHULWHFK)GWK&LU                
                                                                              3ODLQWLIIV VD\ WKDW XQGHU 0,&+&  203 $:6
                                                                                                                    /        SODLQWLIIV
                                                                  VKRXOG KDYH EHHQ SHUVRQDOO\ QRWLILHG EHFDXVH WKH\ DUH QHLJKERULQJ
                                                                         SURSHUW\ RZQHUV ORFDWHG ZLWKLQ  IHHW RI WKH VXEMHFW SURSHUW\
                   &3URFHGXUDO'XH3URFHVV
                                                                             
                                                                               7KLV GHFLVLRQ WRRN HIIHFW RQ sXQH   ZKHQ WKH &LW\ &RXQFLO
                                                                       FDOOHG D VSHFLDO PHHWLQJ DQG DSSURYHG WKH PLQXWHV RI WKH sXQH  
                                                                         PHHWLQJ s$   1RWLFH RI WKH VSHFLDO PHHWLQJ ZDV SXEOLFO\ SRVWHG
  $SHUVRQ
VULJKWQRWEHGHSULYHGRISURSHUW\ZLWKRXWGXH               RQ sXQH   s$ 

SURFHVV RI ODZ LV D IXQGDPHQWDO WHQHQW RI IHGHUDO                    
FRQVWLWXWLRQDOODZ6HH%RGGLHY&RQQHFWLFXW86                7KH =RQLQJ $GPLQLVWUDWRU LV DOVR UHIHUUHG WR DV WKH %XLOGLQJ

  KROGLQJ WKDW WKH URRW UHTXLUHPHQW RI GXH           ,QVSHFWRU s$ 

SURFHVVLVWKDWDQLQGLYLGXDOEHJLYHQDQRSSRUWXQLW\IRUD                 
KHDULQJ EHIRUH KH LV GHSULYHG RI DQ\ VLJQLILFDQW SURSHUW\             1R RQH VHHPV WR GLVSXWH WKH ULJKW RI SODLQWLII .HHQRQ WR DSSHDO WKH
                                                                         =RQLQJ $GPLQLVWUDWRUjV DSSURYDO RI WKH SODQV )XQFWLRQDOO\ WKH DSSURYDO
LQWHUHVW+HUHSODLQWLIIVDOOHJHDQXPEHURIZD\VLQZKLFK          DSSHDUV WR EH LQ IDFW D EXLOGLQJ SHUPLW
     %URG\HWDOY&LW\RI0DVRQHWDO            1R     1R          %URG\HWDOY&LW\RI0DVRQHWDO        

H[SUHVVLQJ WKHLU REMHFWLRQV WR WKH =RQLQJ $GPLQLVWUDWRUjV         DQGUHPDQGHGWKHUHPDLQLQJVWDWHODZFODLPVWRWKHVWDWHFRXUW
DSSURYDO EHFDXVH 0F&DOOD KDG QRW VXEPLWWHG DQ DGHTXDWH           RQsDQXDU\7KLVDSSHDOIROORZHG
JUDGLQJ SODQ   ,Q DGGLWLRQ WR KHDULQJ IURP WKH 0D\RU WKH
=RQLQJ$GPLQLVWUDWRUDQGWKH&LW\(QJLQHHUWKH=%$DOVR                                               ,,,
KHDUGIURPDQDUFKLWHFWEURXJKWWRWKHPHHWLQJE\SODLQWLIIV
ZKRWROGWKH=%$WKDWWKHSDUNLQJORWGLGQRWKDYHDGHTXDWH                                  $3DUWLHV
DUJXPHQWV
GUDLQDJH$IWHUFRQVLGHULQJWKHLVVXHIRUDOPRVWKRXUVWKH
=%$ GHQLHG WKH DSSHDO RQ WKH JURXQGV WKDW SODLQWLIIV KDG          2QDSSHDOSODLQWLIIVDVVHUWWKDWWKHLUSURFHGXUDOGXHSURFHVV
IDLOHGWRSUHVHUYHWKHLVVXHEHFDXVHSODLQWLIIVKDGQRWDSSHDOHG        ULJKWVZHUHYLRODWHGDVIROORZVZKHQ/HEHGRY\FKEXWQRW
ZLWKLQGD\VRIWKH=RQLQJ$GPLQLVWUDWRU
VGHFLVLRQs$             0F&DOODZDVGHQLHGDQRSSRUWXQLW\WRVSHDNDWWKHVHFRQG
3ODLQWLIIVKRZHYHUVD\WKDWLWZDVLPSRVVLEOHWR            3ODQQLQJ &RPPLVVLRQ PHHWLQJ HYHQ WKRXJK WKHUH ZDV QR
DSSHDO WKH GHFLVLRQ DV WKH\ GLG QRW KDYH QRWLFH RI WKH       SXEOLFFRPPHQWSHULRG/HEHGRY\FKVD\VWKDWPRUHFRPPHQW
DSSURYDOXQWLODIWHUWKHGD\VKDGSDVVHG                            ZDV QHHGHG EHFDXVH KH GLVDJUHHG ZLWK WKH FLW\ DWWRUQH\
V
                                                                        RSLQLRQ WKDW XVH RI WKH DOOH\ IRU LQJUHVV DQG HJUHVV WR
  /HEHGRY\FK ZHQW RQ WR ILOH VL[ PRUH DSSHDOV FRQWHVWLQJ        0F&DOOD
VSDUNLQJORWZRXOGQRWYLRODWHWKHODZDQGKHNQHZ
YDULRXV GHFLVLRQV RI WKH  =RQLQJ $GPLQLVWUDWRU DQG WKH           WKDW WKHUH ZDV mPLVLQIRUPDWLRQl LQ IURQW RI WKH SODQQLQJ
3ODQQLQJ &RPPLVVLRQ  7KH DSSHDOV ZHUH HDFK GHHPHG             FRPPLVVLRQZKHQWKH3ODQQLQJ&RPPLVVLRQIDLOHGWR
XQWLPHO\RUODFNLQJLQMXULVGLFWLRQ.HHQRQDOVRILOHGDQRWKHU        PDNHDQ\ZULWWHQILQGLQJVDVPDQGDWHGE\$UWRI
DSSHDOZLWKWKH=%$ZKLFKHQGHGZLWKWKHDIILUPDWLRQRIWKH             WKH=RQLQJ2UGLQDQFHZKHQ/HEHGRY\FKDQGWKHRWKHU
=RQLQJ$GPLQLVWUDWRU
VGHWHUPLQDWLRQ                                   SODLQWLIIV ZHUH QRW SHUVRQDOO\ QRWLILHG RI WKH GDWH WKH &LW\
                                                                        &RXQFLO KHDUG /HEHGRY\FK
V DSSHDO RI WKH 3ODQQLQJ
  0F&DOODZDVHYHQWXDOO\JLYHQD&HUWLILFDWHRI2FFXSDQF\               &RPPLVVLRQ
VGHFLVLRQDOWKRXJKQRWLFHRIWKHPHHWLQJDQGLWV
IRUWKHKDLUVDORQRQ6HSWHPEHU                                DJHQGD ZDV SXEOLFO\ SRVWHG  ZKHQ WKH &LW\ &RXQFLO
                                                                        VXEPLWWHGWKHPLQXWHVRIWKHPHHWLQJDWZKLFK/HEHGRY\FK
V
                                  &                                    DSSHDOZDVGHFLGHGIRUDSSURYDODWDVSHFLDOVHVVLRQRQsXQH
                                                                        IROORZLQJWKHFRQFOXVLRQRIDVFKRROERDUGPHHWLQJ
  3ODLQWLIIVILOHGVXLWLQVWDWHFLUFXLWFRXUWRQ$XJXVW       UDWKHU WKDQ DW WKH QH[W VFKHGXOHG &LW\ &RXQFLO PHHWLQJ
VHHNLQJWRHQMRLQFRQVWUXFWLRQRIWKHSDUNLQJORWDQGDOOHJLQJ          SODLQWLIIV VD\ WKLV DPRXQWHG WR mVSHFLILF DFWLRQ WR LPSHGH
PDQ\ RI WKH VDPH LVVXHV DV LQ WKLV FDVH  s$        SODLQWLIIV
 DELOLW\ WR VHHN OHJDO UHGUHVV DQG  ZKHQ
3ODLQWLIIVjPRWLRQIRUSUHOLPLQDU\LQMXQFWLRQZDVGHQLHGRQ             SODLQWLIIV
DSSHDORIWKH=RQLQJ$GPLQLVWUDWRU
VDSSURYDORI
$XJXVWDQGWKHFDVHZDVGLVPLVVHGZLWKSUHMXGLFHRQ            WKHSDUNLQJORWSDYLQJZDVGHQLHGDVXQWLPHO\HYHQWKRXJK
'HFHPEHUIRUODFNRISURJUHVVs$                    SODLQWLIIVZHUHQRWLILHGRIWKHGHFLVLRQRQO\DIWHUWKHSHULRG
                                                                        IRUREMHFWLQJKDGUXQ
  3ODLQWLIIVILOHGWKHLQVWDQWFDVHLQ,QJKDP&RXQW\&LUFXLW
&RXUWDQGGHIHQGDQWVUHPRYHGLWWRIHGHUDOFRXUWRQ2FWREHU                7KH&LW\UHVSRQGVDVIROORZVDOOWKHSODLQWLIIVKDGWKH
  RQ WKH EDVLV RI IHGHUDO TXHVWLRQ MXULVGLFWLRQ      RSSRUWXQLW\ WR FRPPHQW RQ 0F&DOOD
V VSHFLDO XVH SHUPLW
86&7KHGLVWULFWFRXUWJUDQWHGVXPPDU\MXGJPHQW             DSSOLFDWLRQDWWKHILUVW3ODQQLQJ&RPPLVVLRQPHHWLQJZKLFK
LQIDYRURIWKHGHIHQGDQWVRQWKHIHGHUDOGXHSURFHVVFODLPV           /HEHGRY\FKGLGVSHFLILFZULWWHQILQGLQJVRIIDFWDUHQRW
                                                                        UHTXLUHGDQGWKH3ODQQLQJ&RPPLVVLRQPHHWLQJPLQXWHVVHW
                                                                        IRUWKWKHJHQHUDOVWDQGDUGVIROORZHGDVZHOODVWKHVSHFLILF
                                                                      ILQGLQJVRQZKLFKWKHDSSURYDOZDVEDVHGSHUVRQDOQRWLFH
      7KH QDWXUH RI WKH DSSHDOV LV XQFOHDU IURP WKH UHFRUG