Court Opinion

ID: 2970014
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:02:11.556964+00
Date Added: 2024-06-11T12:40:40.525423
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

 5,&+$5' 0$*$1$                  ;
        3HWLWLRQHU$SSHOODQW      
                                   
                                     1R
           Y                      
                                    !
                                   
 *(5$/' +2)%$8(5                  
        5HVSRQGHQW$SSHOOHH 
                                  1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
     IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
  1Rn%HUQDUG$)ULHGPDQ'LVWULFWsXGJH
                    6XEPLWWHG$SULO
              'HFLGHGDQG)LOHG$XJXVW
 %HIRUH0$57,1&KLHIsXGJH0225(&LUFXLWsXGJH
             2j0$//(<'LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
21%5,()9LQFHQWs/HRQH$66,67$17$77251(<
*(1(5$/ +$%($6 &25386 ',9,6,21 /DQVLQJ

    
     7KH +RQRUDEOH .DWKOHHQ 0F'RQDOG 2j0DOOH\ 8QLWHG 6WDWHV 'LVWULFW
sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

                                   
     0DJDQDY+RIEDXHU                           1R

0LFKLJDQ IRU $SSHOOHH  5LFKDUG 0DJDQD 1HZEHUU\
0LFKLJDQSURVH
                    BBBBBBBBBBBBBBBBB
                        23,1,21
                    BBBBBBBBBBBBBBBBB
  .$5(1 1(/621 0225( &LUFXLW sXGJH  3HWLWLRQHU
$SSHOODQW5LFKDUG0DJDQDDSSHDOVWKHGLVWULFWFRXUWjVGHQLDO
RI KLV SHWLWLRQ IRU KDEHDV FRUSXV UHOLHI  0DJDQD ZDV
FRQYLFWHG E\ D MXU\ LQ 0LFKLJDQ VWDWH FRXUW RI WZR GUXJ
RIIHQVHVDQGVHQWHQFHGWRWZRPDQGDWRULO\FRQVHFXWLYHWHUPV
RIWHQWRWZHQW\\HDUVjLPSULVRQPHQW0DJDQDjVVROHFODLPLQ
KLVKDEHDVSHWLWLRQLVWKDWKHUHFHLYHGLQHIIHFWLYHDVVLVWDQFHRI
FRXQVHOGXULQJWKHSOHDQHJRWLDWLRQSURFHVV0DJDQDFODLPV
WKDW KLV WULDO DWWRUQH\ DGYLVHG KLP WR WXUQ GRZQ WKH
JRYHUQPHQWjVSOHDRIIHUEDVHGXSRQWKHDWWRUQH\jVHUURQHRXV
EHOLHIWKDWWKHPD[LPXPWRZKLFK0DJDQDFRXOGEHVHQWHQFHG
XSRQ FRQYLFWLRQ ZDV WZR WHQ\HDU FRQFXUUHQW VHQWHQFHV
0DJDQDDVVHUWVWKDWLIKLVWULDODWWRUQH\KDGFRUUHFWO\LQIRUPHG
KLP WKDW LI FRQYLFWHG KH ZRXOG UHFHLYH WZR VWDWXWRULO\
PDQGDWHGWHQWRWZHQW\\HDUFRQVHFXWLYHVHQWHQFHVKHZRXOG
KDYHDFFHSWHGWKHJRYHUQPHQWjVSOHDRIIHU)RUWKHIROORZLQJ
UHDVRQVZH5(9(56(WKHGLVWULFWFRXUWjVMXGJPHQW
                     ,s85,6',&7,21
  :H KDYH MXULVGLFWLRQ WR KHDU 0DJDQDjV DSSHDO IURP WKH
GLVWULFWFRXUWjVGHQLDORIKLVSHWLWLRQIRUKDEHDVFRUSXVXQGHU
86&
                    ,,%$&.*5281'
  0DJDQDZDVFKDUJHGLQ6HSWHPEHUZLWKWKUHHFRXQWV
SRVVHVVLRQZLWKLQWHQWWRGHOLYHUPRUHWKDQEXWOHVVWKDQ
JUDPVRIFRFDLQHFRQVSLUDF\WRSRVVHVVZLWKLQWHQWWR
GHOLYHUPRUHWKDQEXWOHVVWKDQJUDPVRIFRFDLQHDQG
SRVVHVVLRQ ZLWK LQWHQW WR GHOLYHU PDULMXDQD  (LWKHU
mLPPHGLDWHO\lEHIRUHRUWKHGD\RIWULDO0DJDQDjVDWWRUQH\
5XGROSK:DUWHOODUHFHLYHGDQRIIHUWRSOHDEDUJDLQIURPWKH
    0DJDQDY+RIEDXHU                             1R       1R                           0DJDQDY+RIEDXHU           

VXIIHUHGE\WKHGHIHQGDQWDQHZWULDOZDVDQLQDSSURSULDWH            0LFKLJDQVWDWHSURVHFXWRU*LQWKHU+UjJDW3ULRUWRWKDW
UHPHG\ IRU D GHIHQGDQW ZKR KDG FRQVWLWXWLRQDOO\ GHILFLHQW       WLPH QR SOHD RIIHU ZDV IRUWKFRPLQJ IURP WKH SURVHFXWRUjV
FRXQVHO GXULQJ WKH SOHD QHJRWLDWLRQ SURFHVV  ,G DW     RIILFH  ,G  :DUWHOOD FRQYH\HG WR 0DJDQD WKDW WKH VWDWH
,QVWHDGZHKHOGWKDWDVDUHPHG\WKHSURVHFXWLRQZDVIUHHWR        RIIHUHG WR GLVPLVV RQH FRFDLQH FRXQW LQ H[FKDQJH IRU
RIIHU WKH GHIHQGDQW DQRWKHU SOHD EDUJDLQ EXW WKDW DQ\ SOHD   0DJDQDjVJXLOW\SOHDWRWKHRWKHURQH:DUWHOODVWDWHGWKDWLW
RIIHU LQ H[FHVV RI WKH RULJLQDO RIIHU PXVW RYHUFRPH D         ZDVKLVXQGHUVWDQGLQJWKDWLI0DJDQDSOHDGHGWRRQHFRFDLQH
UHEXWWDEOHSUHVXPSWLRQRISURVHFXWRULDOYLQGLFWLYHQHVV6HH           FRXQWKHZRXOGUHFHLYHDWHQ\HDUVHQWHQFH,G+HDOVRWROG
LGDW$FFRUGLQJO\ZH5(9(56(WKHGLVWULFWFRXUWjV             0DJDQDWKDWKHZRXOGUHFHLYHDWPRVWDWHQ\HDUVHQWHQFH
GHFLVLRQ GHQ\LQJ 0DJDQDjV SHWLWLRQ IRU KDEHDV UHOLHI DQG        ZHUHKHWREHFRQYLFWHGDWWULDO,GDW%HFDXVH:DUWHOOD
5(0$1'WKLVFDVHWRWKHGLVWULFWFRXUWWRJUDQWWKHZULWRI            GLG QRW EHOLHYH WKDW WKH SOHD EDUJDLQ RIIHUHG 0DJDQD DQ\
KDEHDV FRUSXV ZLWKLQ QLQHW\ GD\V FRQGLWLRQDO XSRQ D QHZ       EHQHILWRYHUJRLQJWRWULDOKHDGYLVHG0DJDQDWRUHMHFWWKH
SOHD KHDULQJ LQ VWDWH FRXUW DW ZKLFK 0DJDQD KDV WKH           SOHDRIIHU,GDW0DJDQDWKHQUHMHFWHGWKHSOHD
RSSRUWXQLW\WRFRQVLGHUZLWKFRXQVHOWKHVWDWHjVRULJLQDOSOHD
RIIHU  6KRXOG WKH VWDWH FKRRVH WR RIIHU 0DJDQD D SOHD LQ      )ROORZLQJDMXU\WULDO0DJDQDZDVFRQYLFWHGRIWKHWZR
H[FHVVRIWHQ\HDUVLWVRULJLQDORIIHUWKHGLVWULFWFRXUWPXVW       FRFDLQHFKDUJHVDQGDFTXLWWHGRQWKHPDULMXDQDFKDUJHsRLQW
GHWHUPLQH ZKHWKHU WKH VWDWH FDQ UHEXW WKH SUHVXPSWLRQ RI       $SSHQGL[ ms$l DW   +H ZDV VHQWHQFHG SXUVXDQW WR
YLQGLFWLYHQHVVZKLFKZRXOGDWWDFKWRLWVRIIHU,IWKHVWDWHFDQ      0LFKLJDQ&RPS/DZVm0&/lDLLLWR
PHHWLWVEXUGHQWKHQWKHSDUWLHVDUHIUHHWRQHJRWLDWHDQHZ          WZR PDQGDWRULO\ FRQVHFXWLYH WHUPV RI WHQ WR WZHQW\ \HDUVj
SOHD  ,I WKH VWDWH FDQQRW RYHUFRPH WKH SUHVXPSWLRQ DQG LW   LPSULVRQPHQW7KDWVWDWXWHVWDWHVWKDWDSHUVRQZKRSRVVHVVHV
UHIXVHVWRUHLQVWDWHLWVRULJLQDORIIHUWKHQWKHZULWPXVWEH         ZLWKLQWHQWWRGHOLYHUPRUHWKDQEXWOHVVWKDQJUDPVRI
JUDQWHG                                                               D FRQWUROOHG VXEVWDQFH mLV JXLOW\ RI D IHORQ\ DQG VKDOO EH
                                                                       LPSULVRQHGIRUQRWOHVVWKDQ\HDUVQRUPRUHWKDQ\HDUVl
                                                                       0&/  DLLL  $FFRUGLQJ WR 0&/
                                                                       DWHUPRILPSULVRQPHQWLPSRVHGSXUVXDQWWR
                                                                       VXEVHFWLRQDmVKDOOEHLPSRVHGWRUXQFRQVHFXWLYHO\ZLWK
                                                                       DQ\ WHUP RI LPSULVRQPHQW LPSRVHG IRU WKH FRPPLVVLRQ RI
                                                                       DQRWKHUIHORQ\l0&/HPSKDVLVDGGHG
                                                                         $IWHUKLVFRQYLFWLRQDQGVHQWHQFLQJ0DJDQDILOHGDPRWLRQ
                                                                       ZLWKWKH0LFKLJDQ&RXUWRI$SSHDOVVHHNLQJDQHYLGHQWLDU\
                                                                       KHDULQJNQRZQDVD*LQWKHUKHDULQJDQGDQHZWULDOEDVHGRQ
                                                                       KLV DVVHUWLRQ WKDW KLV WULDO FRXQVHO ZDV FRQVWLWXWLRQDOO\
                                                                       LQHIIHFWLYH IRU DGYLVLQJ KLP WR UHMHFW WKH SOHD RIIHU  7KH
                                                                       0LFKLJDQ &RXUW RI $SSHDOV JUDQWHG WKH PRWLRQ IRU WKH
                                                                       *LQWKHUKHDULQJDQGUHPDQGHGWRWKHWULDOFRXUW3HRSOHY
                                                                       0DJDQD1R0LFK&W$SS$SURUGHU
                                                                       JUDQWLQJPRWLRQDQGUHPDQGLQJ
                                                                         7KHWULDOFRXUWFRQGXFWHGWKH*LQWKHUKHDULQJRQ0D\
                                                                       $WWKDWKHDULQJ:DUWHOODDQG0DJDQDHDFKWHVWLILHGDV
     0DJDQDY+RIEDXHU                            1R       1R                         0DJDQDY+RIEDXHU         

WR KLV XQGHUVWDQGLQJ RI WKH SOHD EDUJDLQ DQG WKH SRWHQWLDO     4 2ND\$QGWKHUHjVDPDQGDWRU\PLQLPXPRQHDFK
VHQWHQFHVLQYROYHGLQDFFHSWLQJWKHSOHDRIIHUYHUVXVJRLQJWR             FKDUJHRIWHQ\HDUVLVWKDWULJKW"
WULDO0DJDQDDVVHUWHGWKDWKDGKLVWULDOFRXQVHOLQIRUPHG
KLP WKDW KLV VHQWHQFHV ZRXOG UXQ FRQVHFXWLYHO\ LI KH ZDV       $ 5LJKWWKDWLWZRXOGUXQFRQFXUUHQW
FRQYLFWHG KH ZRXOG KDYH SOHDGHG JXLOW\  )ROORZLQJ WKH
KHDULQJWKHWULDOFRXUWKHOGWKDW0DJDQDjVWULDOFRXQVHOZDV         ,GDWHPSKDVLVDGGHG$OWKRXJKDVWKHVWDWHWULDOFRXUW
QRW FRQVWLWXWLRQDOO\ LQHIIHFWLYH EHFDXVH 0DJDQD FRXOG QRW       IRXQG 0DJDQD GRHV FRQFHGH WKDW KH KDG EHHQ WROG DW RQH
SURYHWKDWEXWIRUKLVFRXQVHOjVIDXOW\DGYLFHKHZRXOGKDYH        SRLQWWKDWWKHPD[LPXPVHQWHQFHKHFRXOGUHFHLYHZDVWZHQW\
DFFHSWHG WKH SOHD  3HRSOH Y 0DJDQD 1R )+          \HDUV ZH QRWH ILUVW WKDW KH ZDV H[SRVHG WR D SRWHQWLDO
0DFRPE&W\&LU&W0D\                                   VHQWHQFHRIIRUW\\HDUVjLPSULVRQPHQWDQGKHGRHVQRWDSSHDU
                                                                      WR KDYH EHHQ LQIRUPHG RI WKDW IDFW DQG VHFRQG WKDW KLV
  0DJDQDWKHQILOHGDPRWLRQIRUSHUHPSWRU\UHYHUVDOLQWKH           VWDWHPHQW LQ ZKLFK KH SXUSRUWHGO\ H[SUHVVHG KLV
0LFKLJDQ &RXUW RI $SSHDOV DUJXLQJ WKDW WKH WULDO FRXUW       XQGHUVWDQGLQJ RI WKH VWDWH VWDWXWRU\ VHQWHQFLQJ VFKHPH LV
FRPPLWWHGSODLQHUURUE\GHQ\LQJKLVLQHIIHFWLYHDVVLVWDQFHRI        LQWHUQDOO\ FRQWUDGLFWRU\ DQG KDUGO\ UHIOHFWV D FOHDU
FRXQVHOFODLP7KH0LFKLJDQ&RXUWRI$SSHDOVGHQLHGWKH              DSSUHFLDWLRQRIWKHULVNVRIJRLQJWRWULDO$OWKRXJKWKHVWDWH
PRWLRQmIRUIDLOXUHWRSHUVXDGHWKH&RXUWRIWKHH[LVWHQFHRI         WULDO FRXUW DSSDUHQWO\ ZHLJKHG 0DJDQDjV LQFRQVLVWHQW
PDQLIHVWO\ UHYHUVLEOH HUURU ZDUUDQWLQJ SHUHPSWRU\ UHOLHI         WHVWLPRQ\ DQG FRQFOXGHG WKDW GHIHQGDQW mNQHZ WKDW LI
ZLWKRXWDUJXPHQWRUIRUPDOVXEPLVVLRQl3HRSOHY0DJDQD            FRQYLFWHGKHFRXOGUHFHLYHVHQWHQFHVRIXSWR\HDUVlZH
1R0LFK&W$SS6HSWRUGHUGHQ\LQJ              GR QRW EHOLHYH WKDW 0DJDQDjV RQH VWDWHPHQW UHIOHFWLQJ
PRWLRQ  7KHUHDIWHU 0DJDQD DSSHDOHG WKH WULDO FRXUWjV        NQRZOHGJHRIDFRQFHLYDEOHWZHQW\\HDUVHQWHQFHHOLPLQDWHV
GHFLVLRQ7KH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHGWKHWULDO           WKHUHDVRQDEOHSUREDELOLW\HVWDEOLVKHGE\WKHUHVWRI0DJDQDjV
FRXUWjVILQGLQJWKDW0DJDQDKDGQRWVXIIHUHGSUHMXGLFHIURP           WHVWLPRQ\DWWKH*LQWKHUKHDULQJWKDWKHZRXOGKDYHDFFHSWHG
KLVFRXQVHOjVIDLOXUHSURSHUO\WRDGYLVHKLPRIKLVSRWHQWLDO         WKHVWDWHjVSOHDRIIHUKDGKHEHHQDFFXUDWHO\DSSULVHGRIKLV
VHQWHQFHVKRXOGKHJRWRWULDODQGWKHQUHPDQGHGWKHFDVHWR         SRWHQWLDOSULVRQVHQWHQFH
WKHWULDOFRXUWIRUIXUWKHUILQGLQJVRQDFODLPRIHQWUDSPHQW
3HRSOH Y 0DJDQD 1R  0LFK &W $SS $SULO          %HFDXVHWKHWULDOFRXUWDQGWKH0LFKLJDQ&RXUWRI$SSHDOV
  )ROORZLQJ WKH WULDO FRXUWjV UHMHFWLRQ RI 0DJDQDjV     UHQGHUHGDGHFLVLRQWKDWZDVFRQWUDU\WRFOHDUO\HVWDEOLVKHG
HQWUDSPHQWFODLPWKH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHG              6XSUHPH &RXUW SUHFHGHQW DQG WKH UHFRUG FRQFOXVLYHO\
WKH WULDO FRXUWjV GHFLVLRQ 3HRSOH Y 0DJDQD 1R       GHPRQVWUDWHVWKDWSHWLWLRQHULVHQWLWOHGWRKDEHDVUHOLHIXQGHU
0LFK&W$SS6HSWDQGWKH0LFKLJDQ6XSUHPH             WKHFRUUHFWVWDQGDUGRIODZZH5(9(56(WKHGLVWULFWFRXUWjV
&RXUWGHQLHGOHDYHWRDSSHDO3HRSOHY0DJDQD1R            GHQLDORI0DJDQDjVSHWLWLRQIRUKDEHDVFRUSXVUHOLHI
$XJ
                                                                                              ,95(0('<
  +DYLQJ H[KDXVWHG KLV VWDWH UHPHGLHV 0DJDQD ILOHG D
SHWLWLRQ IRU KDEHDV FRUSXV UHOLHI LQ IHGHUDO GLVWULFW FRXUW     $VZHQRWHGLQ7XUQHUDUHPHG\IRUD6L[WK$PHQGPHQW
SXUVXDQW WR  86&    7KH GLVWULFW FRXUW GHQLHG    YLRODWLRQmVKRXOGEHWDLORUHGWRWKHLQMXU\VXIIHUHGIURPWKH
0DJDQDjV SHWLWLRQ  $FFRUGLQJ WR WKH GLVWULFW FRXUW           FRQVWLWXWLRQDOYLRODWLRQDQGVKRXOGQRWXQQHFHVVDULO\LQIULQJH
m>S@HWLWLRQHUjVFRXQVHOWHVWLILHGDWWKH*LQWKHUKHDULQJWKDWLW      RQFRPSHWLQJLQWHUHVWVl7XUQHU)GDWTXRWLQJ
ZDV KLV XQGHUVWDQGLQJ DQG KH LQIRUPHG 3HWLWLRQHU               8QLWHG6WDWHVY0RUULVRQ86:H
DFFRUGLQJO\WKDWHDFKRIWKHFRFDLQHFKDUJHVFDUULHGSRWHQWLDO       DOVRQRWHGWKDWEHFDXVHWKHUHPHG\IRUD6L[WK$PHQGPHQW
                                                                      YLRODWLRQVKRXOGmQHXWUDOL]HlWKHFRQVWLWXWLRQDOGHSULYDWLRQ
    0DJDQDY+RIEDXHU                               1R       1R                            0DJDQDY+RIEDXHU            

DILQGLQJRISUHMXGLFH6HFRQG:DUWHOODWHVWLILHGDERXWKRZ           VHQWHQFHVRIWHQWRWZHQW\\HDUVDQGWKDWWKRVHWZRVHQWHQFHV
0DJDQD UHDFWHG WR WKH SOHD RIIHU KH SUHVHQWHG HLWKHU             FRXOGQRWUXQFRQVHFXWLYHO\ls$DW7KHGLVWULFWFRXUW
LPPHGLDWHO\EHIRUHRURQWKHGD\RIWULDO$IWHU:DUWHOODWROG          DOVR FRQFOXGHG WKDW m>S@HWLWLRQHU    WHVWLILHG WKDW KH ZDV
0DJDQDWKDWmKHZDVJRLQJWRJHWWHQ\HDUVZKHWKHUKHZHQW               DZDUH WKDW HDFK RI WKH FRFDLQHUHODWHG FKDUJHV FDUULHG
WRWULDORUGLGQjWJRWRWULDOl0DJDQDWKHQVWDWHGWKDWm>X@QGHU        SRWHQWLDOVHQWHQFHVRIXSWRWZHQW\\HDUVLQFDUFHUDWLRQls$
WKRVHFLUFXPVWDQFHVlKHZRXOGJRWRWULDO*LQWKHU+UjJDW           DW%HFDXVH0DJDQDmSURYLGHGQRFUHGLEOHHYLGHQFHZKLFK
HPSKDVLVDGGHG                                                        VKRZVWKDWWKHVWDWHFRXUWjVFRQFOXVLRQZDVDQXQUHDVRQDEOH
                                                                         DSSOLFDWLRQ RI 6XSUHPH &RXUW SUHFHGHQWl LG WKH GLVWULFW
   $OWKRXJKDVWKHVWDWHWULDOFRXUWIRXQGWKH*LQWKHUKHDULQJ         FRXUWGHQLHG0DJDQDjVSHWLWLRQIRUKDEHDVUHOLHI
WUDQVFULSWUHYHDOVWKDW0DJDQDWKRXJKWKHKDGWZRIDFWRUVWKDW
ZRXOGZHLJKLQKLVIDYRULIKHZHQWWRWULDOQDPHO\WKDWKH               0DJDQDWKHQILOHGDPRWLRQLQWKHGLVWULFWFRXUWVHHNLQJD
SRVVHVVHGRQO\JUDPVRIFRFDLQHZKLFKZDVFORVHWRWKH               FHUWLILFDWH RI DSSHDODELOLW\ IRU KLV LQHIIHFWLYH DVVLVWDQFH RI
VWDWXWRU\ PLQLPXP RI  JUDPV DQG WKDW KH ZDV D PLQRU         FRXQVHO FODLP  7KH GLVWULFW FRXUW GHQLHG WKH FHUWLILFDWH RI
SOD\HULQWKHVFKHPHZHGRQRWEHOLHYHWKDWWKLVSDUWRIKLV            DSSHDODELOLW\  7KHUHDIWHU 0DJDQD ILOHG D QRWLFH RI DSSHDO
WHVWLPRQ\XQGHUPLQHVWKHUHVWRIKLVWHVWLPRQ\HVWDEOLVKLQJDW           ZLWK WKLV FRXUW ZKLFK ZDV FRQVWUXHG DV D PRWLRQ IRU D
OHDVWDUHDVRQDEOHSUREDELOLW\WKDWKHZRXOGQRWKDYHJRQHWR            FHUWLILFDWH RI DSSHDODELOLW\ XQGHU  86&    :H
WULDOLIKHKDGQRWEHHQH[SOLFLWO\DVVXUHGE\KLVFRXQVHOWKDW          JUDQWHGDFHUWLILFDWHRIDSSHDODELOLW\RQ0DJDQDjVVROHFODLP
KH mZDV JRLQJ WR JHW WHQ \HDUV ZKHWKHU KH ZHQW WR WULDO RU   RILQHIIHFWLYHDVVLVWDQFHRIFRXQVHO
GLGQjWJRWRWULDOl*LQWKHU+UjJDW,QGHHGZHQRWHWKDW
DQ\GHIHQGDQWZKRKDVPHQWDOO\ SUHSDUHGKLPVHOIWRJRWR                                         ,,,$1$/<6,6
WULDOEHFDXVHWKHVWDWHKDVUHIXVHGWRSOHDEDUJDLQZLWKKLPDV
WKHVWDWHKHUHUHIXVHGXQWLOLPPHGLDWHO\EHIRUHWULDOZLOOKDYH         $6WDQGDUGRI5HYLHZ
DOUHDG\ DVVHVVHG IRU KLPVHOI WKH UHODWLYH VWUHQJWKV DQG
ZHDNQHVVHVRIWKHJRYHUQPHQWjVFDVHDJDLQVWKLP0DJDQD                   :KHQ D GLVWULFW FRXUWjV GHFLVLRQ WR GHQ\ KDEHDV FRUSXV
DSSHDUVWRKDYHGRQHMXVWWKDW                                          UHOLHIXQGHU86&LVDSSHDOHGWRWKLVFRXUWZH
                                                                         UHYLHZWKHGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGHQRYRDQGLWV
  7KH VWDWH WULDO FRXUW DOVR IRXQG WKDW 0DJDQD JDYH RQH         IDFWXDOILQGLQJVIRUFOHDUHUURU3DOD]]RORY*RUF\FD
LQGLFDWLRQLQWKH*LQWKHUKHDULQJWKDWKHKDGEHHQLQIRUPHG              )GWK&LU
WKDWKHFRXOGUHFHLYHDSRVVLEOHWZHQW\\HDUVHQWHQFHIRUWKH
FRFDLQHFKDUJHV                                                            %HFDXVH 0DJDQDjV SHWLWLRQ IRU KDEHDV FRUSXV UHOLHI ZDV
                                                                         ILOHGLQsXQHDIWHUWKHHIIHFWLYHGDWHRIWKH$QWLWHUURULVP
  4 6LU\RXZHUHDGYLVHGRIZKDWWKHPD[LPXPRUZKDW                   DQG(IIHFWLYH'HDWK3HQDOW\$FWRIm$('3$l3XE/
     SHQDOW\\RXZHUHIDFLQJLQWKLVFDVHLVWKDWULJKW"                1R   6WDW   ZKLFK DPHQGHG 
     'LG0U:DUWHOODWHOO\RXnRU\RXZHUHDGYLVHGDW                 86&$('3$JRYHUQVRXUUHYLHZRIWKHVWDWHFRXUW
     \RXUDUUDLJQPHQWZHUHQjW\RXWKDWWKHPD[LPXP                     GHFLVLRQVLQWKLVFDVH$FFRUGLQJWRWKHDPHQGHGYHUVLRQRI
     SHQDOW\LQWKLVFDVHZDVWZHQW\\HDUVLQSULVRQIRU                 86&ZHPD\QRWJUDQWDZULWRIKDEHDVFRUSXV
     GHOLYHU\RIFRFDLQH"                                                mZLWKUHVSHFWWRDQ\FODLPWKDWZDVDGMXGLFDWHGRQWKHPHULWV
                                                                         LQ 6WDWH FRXUW SURFHHGLQJV XQOHVV WKH DGMXGLFDWLRQ RI WKH
  $ <HDK,ZRXOGJHWWHQLI,WRRNWKHSOHDRU,ORVWLQ             FODLPn
     WULDOEXWWKHPD[ZRXOGEHWZHQW\
      0DJDQDY+RIEDXHU                            1R       1R                         0DJDQDY+RIEDXHU         

     UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU          4 2ND\$QG\RXMXVWVDLGKHDGYLVHG\RXWKH\ZRXOG
        LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\               UXQFRQFXUUHQW"
        HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH
        6XSUHPH&RXUWRIWKH8QLWHG6WDWHVRU                           

     UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ              $ <HV<HV
        XQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRI
        WKHHYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ            4 2ND\,I\RXKDGNQRZQWKDWWKH\ZRXOGEHVWDFNHG
                                                                            ZRXOG\RXKDYHSOHGJXLOW\"
86&G7KHIHGHUDOFRXUWPXVWSUHVXPH
WKDW DOO GHWHUPLQDWLRQV RI IDFWXDO LVVXHV PDGH E\ WKH VWDWH     $ ,VXUHZRXOGKDYH,PHDQWHQ\HDUVLVDORWEHWWHU
FRXUW DUH FRUUHFW XQOHVV WKH GHIHQGDQW FDQ UHEXW WKDW               WKDQWZHQW\NQRZLQJWKDW,GLGKDYHRQWKHGHOLYHU\
SUHVXPSWLRQE\FOHDUDQGFRQYLQFLQJHYLGHQFH6HH86&                \HV,ZRXOGKDYH
H
                                                                       *LQWKHU+UjJDWHPSKDVLVDGGHG/DWHULQWKHKHDULQJ
  7KH6XSUHPH&RXUWKDVFODULILHGWKDWWKHSKUDVHVmFRQWUDU\           0DJDQD WROG WKH SURVHFXWRU WKDW DOWKRXJK KH ZDV ZRUULHG
WRl DQG mXQUHDVRQDEOH DSSOLFDWLRQ RIl LQ  86&              DERXWWKHPDULMXDQDFKDUJHEHFDXVHKHNQHZKLPVHOIWREH
GKDYHLQGHSHQGHQWPHDQLQJ3HQU\YsRKQVRQ              JXLOW\LGDWKHWKRXJKWWRKLPVHOIm,IHHOZHKDGVRPH
6&W,QRUGHUIRUDVWDWHFRXUWWR           LVVXHVDQGPD\EHJHWDOHVVHUFKDUJHDQGDWWKDWWLPH,WXUQHG
UHQGHUDGHFLVLRQmFRQWUDU\WRlFOHDUO\HVWDEOLVKHG6XSUHPH            GRZQWKHWHQDQG,VDLG,GRQjWKDYHQRWKLQJWRORVHOHWjVJR
&RXUW SUHFHGHQW WKH VWDWH FRXUW PXVW mDSSO>\@ D UXOH WKDW    WRWULDO$QGDWWKDWWLPH,ZDVDOZD\Vn\RXNQRZ,VDLG
FRQWUDGLFWVWKHJRYHUQLQJODZVHWIRUWKLQ>6XSUHPH&RXUW@             ZHOOHYHQLI,ORVHWRP\VHOI,ZRXOGVWLOORQO\JHWWHQHYHQ
FDVHVl RU mFRQIURQW>@ D VHW RI IDFWV WKDW DUH PDWHULDOO\     LIDOOWKUHHFKDUJHVZHUHIRXQGJXLOW\WKDWWKH\ZRXOGEHn
LQGLVWLQJXLVKDEOHIURPDGHFLVLRQRIlWKH6XSUHPH&RXUWDQG            UXQFRQFXUUHQWl,GDWHPSKDVLVDGGHG
QHYHUWKHOHVVDUULYHDWDGLIIHUHQWUHVXOW:LOOLDPVY7D\ORU
862j&RQQRUsFRQFXUULQJ$Q               7ZRREMHFWLYHIDFWRUVLQDGGLWLRQWRWKHGHIHQGDQWjVRZQ
mXQUHDVRQDEOHDSSOLFDWLRQRIlFOHDUO\HVWDEOLVKHG)HGHUDOODZ          GHFODUDWLRQVFRQYLQFHXVWKDWWKHUHZDVDWOHDVWDUHDVRQDEOH
PD\RFFXULQFRQWUDVWZKHQmWKHVWDWHFRXUWLGHQWLILHVWKH           SUREDELOLW\WKDW0DJDQDZRXOGKDYHDFFHSWHGWKHSOHDRIIHU
FRUUHFWJRYHUQLQJOHJDOSULQFLSOHIURPWKLV&RXUWjVGHFLVLRQV          KDGKHNQRZQKLVWUXHVHQWHQFLQJH[SRVXUH)LUVWWKHUHLVD
EXW XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH   ODUJH GLVSDULW\ LQ WKH SULVRQ VHQWHQFHV EHWZHHQ WKDW ZKLFK
SULVRQHUjVFDVHl,GDW$QXQUHDVRQDEOHDSSOLFDWLRQRI         0DJDQDZDVRIIHUHGE\WKHVWDWHnWHQ\HDUVmRQWKHQRVHln
ODZLVQRWDFFRUGLQJWRWKH6XSUHPH&RXUWPHUHO\LQFRUUHFW          DQGWKDWZKLFKKHUHFHLYHGE\YLUWXHRIWKHMXU\YHUGLFWnD
UDWKHUmWKDWDSSOLFDWLRQPXVWDOVREHXQUHDVRQDEOHl,GDW          PLQLPXPRI WZHQW\\HDUVjDQGDPD[LPXPRIIRUW\\HDUVj
                                                                   LPSULVRQPHQW  ,W GRHV QRW VWUDLQ UHDVRQ WR EHOLHYH WKDW
                                                                       0DJDQDZRXOGKDYHFKRVHQDIODWWHQ\HDUVHQWHQFHLQVWHDGRI
  :H PXVW WKHUHIRUH GHWHUPLQH ZKHWKHU WKH VWDWH FRXUWjV       ULVNLQJDSRVVLEOHIRUW\\HDUWHUP,QGHHGKHVRWHVWLILHGDW
FRQFOXVLRQWKDW0DJDQDZDVQRWGHSULYHGKLVULJKWWRHIIHFWLYH         WKHKHDULQJ6HHHJ*LQWKHU+UjJDW&I*RUGRQ
DVVLVWDQFH RI FRXQVHO LV FRQWUDU\ WR RU DQ XQUHDVRQDEOH        )GDWQRWLQJWKDWODUJHGLVSDULW\EHWZHHQDFWXDO
DSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG)HGHUDOODZ                        VHQWHQFHDQGVHQWHQFHWKDWGHIHQGDQWjVFRXQVHOUHSUHVHQWHGKH
                                                                       ZRXOGUHFHLYHLIKHZHQWWRWULDOSURYLGHVVXIILFLHQWHYLGHQFH
                                                                       ZKHQYLHZHGZLWKWKHGHIHQGDQWjVRZQWHVWLPRQ\WRVXSSRUW
    0DJDQDY+RIEDXHU                              1R      1R                          0DJDQDY+RIEDXHU           

VHSDUDWHRSLQLRQVLQWKDWFDVHZKLFKGHWHUPLQHGWKDWWKHVWDWH         %,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO
FRXUWKDGHUUHGE\KROGLQJWKHSHWLWLRQHUWRDQHUURQHRXVOHJDO
EXUGHQXQGHUWKH&RXUWjVUHOHYDQWSUHFHGHQWVWKHQHQJDJHGLQ              ,QRUGHUWRVXFFHHGRQDFODLPRILQHIIHFWLYHDVVLVWDQFHRI
D GH QRYR UHYLHZ RI WKH SHWLWLRQHUjV FODLP XQGHU WKH          FRXQVHO D SHWLWLRQHU PXVW VKRZ ERWK WKDW KLV FRXQVHOjV
FRQWUROOLQJODZ6HH:LOOLDPV86DW6WHYHQV           SHUIRUPDQFHZDVFRQVWLWXWLRQDOO\GHILFLHQWVXFKWKDWKHZDV
s PDMRULW\ RSLQLRQ DQDO\]LQJ GH QRYR KRZ FRXQVHOjV         QRW IXQFWLRQLQJ DV WKH mFRXQVHOl JXDUDQWHHG E\ WKH 6L[WK
HUURUV DW VHQWHQFLQJ SUHMXGLFHG SHWLWLRQHU LG DW       $PHQGPHQW DQG WKDW KH ZDV SUHMXGLFHG E\ KLV FRXQVHOjV
2j&RQQRU s FRQFXUULQJ RSLQLRQ HQJDJLQJ LQ GH QRYR        HUURUV6WULFNODQGY:DVKLQJWRQ86
UHYLHZDIWHUQRWLQJWKDWLWZDVmLPSRVVLEOHWRGHWHUPLQHlWR           7R SURYH FRQVWLWXWLRQDOO\ GHILFLHQW SHUIRUPDQFH SHWLWLRQHU
ZKDWH[WHQWVWDWHVXSUHPHFRXUWjVHUURQHRXVYLHZRIWKHODZ            PXVW VKRZ WKDW KLV FRXQVHOjV SHUIRUPDQFH IHOO EHORZ DQ
FRORUHGLWVILQGLQJWKDWSHWLWLRQHUVXIIHUHGQRSUHMXGLFH,Q        REMHFWLYH VWDQGDUG RI UHDVRQDEOHQHVV XQGHU SUHYDLOLQJ
DFFRUGDQFHZLWKWKH6XSUHPH&RXUWjVFRXUVHRIDFWLRQZH               SURIHVVLRQDOQRUPV6WULFNODQG86DW,IKHFDQ
ZLOOWKHUHIRUHHQJDJHLQDGHQRYRUHYLHZRI0DJDQDjVFODLP          PHHWWKLVVWDQGDUGWKHQSHWLWLRQHUPXVWHVWDEOLVKSUHMXGLFHE\
RILQHIIHFWLYHDVVLVWDQFHRIFRXQVHO&I5RVH)GDW       GHPRQVWUDWLQJWKDWmWKHUHLVDUHDVRQDEOHSUREDELOLW\WKDWEXW
UHFRJQL]LQJWKDWmUDWKHUWKDQFDOOLQWRGRXEWRXUDXWKRULW\WR        IRU FRXQVHOjV XQSURIHVVLRQDO HUURUV WKH UHVXOW RI WKH
FRQGXFW D GH QRYR UHYLHZ RI >SHWLWLRQHUjV@ LQHIIHFWLYH          SURFHHGLQJZRXOGKDYHEHHQGLIIHUHQWl6WULFNODQG86
DVVLVWDQFHRIFRXQVHOFODLP:LOOLDPVFRQFOXVLYHO\DIILUPVRXU         DW$mUHDVRQDEOHSUREDELOLW\lLVDmSUREDELOLW\VXIILFLHQW
DXWKRULW\WRFRQGXFWVXFKDUHYLHZlZKHQSUHVHQWHGZLWKD              WRXQGHUPLQHFRQILGHQFHLQWKHRXWFRPHl,G7KH6XSUHPH
VWDWHFRXUWGHFLVLRQZKLFKLVFRQWUDU\WRFOHDUO\HVWDEOLVKHG          &RXUWjVWZRSDUWVWDQGDUGIRUDQDO\]LQJFODLPVRILQHIIHFWLYH
6XSUHPH&RXUWSUHFHGHQW                                              DVVLVWDQFH RI FRXQVHO ILUVW DUWLFXODWHG LQ 6WULFNODQG ZDV
                                                                       FOHDUO\ HVWDEOLVKHG ODZ DV RI WKH WLPH 0DJDQD EURXJKW KLV
  $IWHUFDUHIXOUHYLHZRIWKHHYLGHQWLDU\KHDULQJWUDQVFULSW           VWDWHFRXUWDSSHDO:LOOLDPV86DW
DQGWKHVWDWHWULDOFRXUWjVGHFLVLRQZHEHOLHYHWKDW0DJDQD
DGHTXDWHO\ GHPRQVWUDWHG WKDW WKHUH ZDV D UHDVRQDEOH                 7KH6WULFNODQGDQDO\VLVDOVRDSSOLHVWRFODLPVRILQHIIHFWLYH
SUREDELOLW\ WKDW EXW IRU KLV FRXQVHOjV HUURQHRXV DGYLFH        DVVLVWDQFH RI FRXQVHO LQYROYLQJ FRXQVHOjV DGYLFH RIIHUHG
FRQFHUQLQJ KLV HVWLPDWHG SULVRQ VHQWHQFH ZHUH KH WR EH         GXULQJWKHSOHDSURFHVV+LOOY/RFNKDUW86
FRQYLFWHG DW WULDO KH ZRXOG KDYH DFFHSWHG WKH VWDWHjV SOHD   $FFRUGLQJWRWKH6XSUHPH&RXUWDSHWLWLRQHUZKR
RIIHU0DJDQDWHVWLILHGWKDWZKHQSUHVHQWHGZLWKWKHVWDWHjV         DVVHUWV WKDW KLV FRXQVHO ZDV FRQVWLWXWLRQDOO\ LQHIIHFWLYH IRU
SOHDRIIHUHLWKHULPPHGLDWHO\EHIRUHRURQWKHGD\RIWULDOKH        HQFRXUDJLQJ KLP WR SOHDG JXLOW\ PXVW SURYH ERWK WKDW KLV
UHDVRQHG                                                              FRXQVHOjV SHUIRUPDQFH ZDV GHILFLHQW DQG WKDW mWKHUH LV D
                                                                       UHDVRQDEOHSUREDELOLW\WKDWEXWIRUFRXQVHOjVHUURUVKHZRXOG
  m,VDLGZHOO\RXNQRZ,GRQjWKDYHQRWKLQJWRORVHLI             QRWKDYHSOHDGHGJXLOW\DQGZRXOGKDYHLQVLVWHGRQJRLQJWR
  ,jPn\RXNQRZKHDGYLVHGPHWKDWWKH\ZRXOGDOOUXQ                WULDOl,GDW)ROORZLQJ/RFNKDUWZHKDYHKHOGWKDWD
  FRQFXUUHQW ZKDWHYHU , JRW HYHQ LI , JRW JXLOW\ RQ WKH    SHWLWLRQHU ZKR FODLPV WKDW KLV FRXQVHO ZDV LQHIIHFWLYH IRU
  PDULMXDQD\RXNQRZDQG,VDLGWKDWjVZKDW,ZDQWWRGR           HQFRXUDJLQJKLPWRUHMHFWDSOHDEDUJDLQDQGJRWRWULDOVWDWHV
  JRWRWULDOEHFDXVH\RXNQRZ,ZDVWU\LQJWRJHWDOHVVHU         DYLDEOH6L[WK$PHQGPHQWFODLP7XUQHUY7HQQHVVHH
  FKDUJH\RXNQRZEHFDXVHLWZDVVRFORVHWRILIW\JUDPV            )GWK&LUYDFDWHGRQRWKHUJURXQGV
  LWZDVQjWDQGRYHULWZDVILIW\DQGXQGHU                      86UHLQVWDWHGRQRWKHUJURXQGV)G
                                                                         WK &LU   6XFK D SHWLWLRQHU PXVW SURYH
                                                                       ERWKGHILFLHQWSHUIRUPDQFHRQWKHSDUWRIKLVFRXQVHODQGWKDW
      0DJDQDY+RIEDXHU                                  1R        1R                           0DJDQDY+RIEDXHU          

EXWIRUKLVFRXQVHOjVDGYLFHWKHUHLVDUHDVRQDEOHSUREDELOLW\               EXWIRUKLVFRXQVHOjVHUURQHRXVDGYLFHWKHUHLVDUHDVRQDEOH
WKDW KH ZRXOG KDYH SOHDGHG JXLOW\  7XUQHU  )G DW            SUREDELOLW\WKDWKHZRXOGKDYHDFFHSWHGWKHSOHD:KHQZH
VHHDOVR3DWHUV)GDWUHTXLULQJGHIHQGDQW                  FRPSDUHWKH0LFKLJDQ&RXUWRI$SSHDOVjVOHJDOIRUPXODWLRQ
WRVKRZWKDWmWKHUHLVDUHDVRQDEOHSUREDELOLW\WKDWKHZRXOG                 RI D FODLP RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO DW WKH SOHD
KDYH DFFHSWHG WKH DOOHJHG SURSRVHG SOHD DJUHHPHQW DEVHQW               EDUJDLQLQJ VWDJH ZLWK WKDW RI WKH 8QLWHG 6WDWHV 6XSUHPH
GHIHQVH FRXQVHOjV DGYLFHl *RUGRQ  )G DW                     &RXUW LW LV FOHDU WKDW WKH 0LFKLJDQ &RXUW RI $SSHDOVjV
DSSO\LQJ mUHDVRQDEOH SUREDELOLW\l VWDQGDUG WR FODLP WKDW               VWDQGDUGSODFHGWRRJUHDWDEXUGHQRISURRIRQWKHGHIHQGDQW
GHIHQVH FRXQVHOjV JURVV PLVDGYLFH UHJDUGLQJ SRWHQWLDO                    WR VKRZ SUHMXGLFH  XQGHU WKDW VWDWH FRXUWjV GHILQLWLRQ D
VHQWHQFLQJH[SRVXUHYLRODWHGGHIHQGDQWjV6L[WK$PHQGPHQW                      GHIHQGDQW PXVW GHPRQVWUDWH QRW MXVW D mUHDVRQDEOH
ULJKWV8QLWHG6WDWHVY'D\)GG&LU                 SUREDELOLW\lEXWDQDEVROXWHFHUWDLQW\WKDWWKHRXWFRPHRIWKH
QRWLQJ WKDW GHIHQGDQW ZKR FODLPV WKDW KLV FRXQVHOjV JURVV            SURFHHGLQJVZRXOGEHGLIIHUHQW&I'D\)GDWQ
XQGHUHVWLPDWLRQRIKLVVHQWHQFHOHGKLPWRUHMHFWVWDWHjVSOHD                QRWLQJ WKDW m6WULFNODQG Y :DVKLQJWRQ GRHV QRW UHTXLUH
RIIHU PXVW PHHW WKH mUHDVRQDEOH SUREDELOLW\l VWDQGDUG WR               FHUWDLQW\ RU HYHQ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW WKH
SURYHSUHMXGLFH                                                             RXWFRPHZRXOGKDYHEHHQGLIIHUHQWZLWKHIIHFWLYHDVVLVWDQFH
                                                                              RIFRXQVHOLWUHTXLUHVRQO\µUHDVRQDEOHSUREDELOLW\jWKDWWKDW
&6WDWH&RXUW'HFLVLRQV                                                     LVWKHFDVHl+ROGLQJ0DJDQDWRWKLVPRUHH[DFWLQJVWDQGDUG
                                                                              ZDV ZH EHOLHYH FRQWUDU\ WR FOHDUO\ HVWDEOLVKHG 6XSUHPH
  $IWHUWKH*LQWKHUKHDULQJWKHVWDWHWULDOFRXUWFRQFOXGHG                  &RXUW SUHFHGHQW  6HH :LOOLDPV  86 DW 
WKDW :DUWHOOD KDG LQIRUPHG 0DJDQD WKDW LQ H[FKDQJH IRU               K\SRWKHVL]LQJWKDWDVWDWHFRXUWZKLFKKHOGWKDW6WULFNODQG
0DJDQDjV JXLOW\ SOHD WKH VWDWH mZRXOG UHFRPPHQG D                     VWDQGDUG IRU LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO UHTXLUHG
PLQLPXP VHQWHQFH RI  \HDUVl  $SSHOOHHjV %U DW                  SULVRQHUWRHVWDEOLVKE\DSUHSRQGHUDQFHRIWKHHYLGHQFHDV
$FFRUGLQJ WR WKH WULDO FRXUW :DUWHOOD DOVR mEHOLHYHG DQ\             RSSRVHGWRDUHDVRQDEOHSUREDELOLW\WKDWUHVXOWRISURFHHGLQJV
VHQWHQFHVGHIHQGDQWZRXOGUHFHLYHIROORZLQJDWULDOZRXOGUXQ                 ZRXOG KDYH EHHQ GLIIHUHQW ZRXOG EH FRQWUDU\ WR FOHDUO\
FRQFXUUHQW QRW FRQVHFXWLYH DQG GLGQjW EHOLHYH GHIHQGDQW                 HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQWVHHDOVR5RVHY/HH
ZRXOGUHFHLYHDQ\EHQHILWE\SOHDGLQJJXLOW\l,G7KHFRXUW                 )G   WK &LU  QRWLQJ WKDW LW ZDV
WKHQIRXQGWKHIROORZLQJDVWR0DJDQD                                        mFRQWUDU\WRlFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQWIRU
                                                                              VWDWH KDEHDV FRXUW WR UHTXLUH SHWLWLRQHU WR SURYH SUHMXGLFH
      
                                                                              XQGHU6WULFNODQGE\DSUHSRQGHUDQFHRIWKHHYLGHQFH0DVN
     7KH   6HYHQWK DQG 6HFRQG &LUFXLWV KDYH KHOG WKDW D GHIHQGDQWjV SRVW     Y0F*LQQLV)GG&LUFRQFOXGLQJ
FRQYLFWLRQ WHVWLPRQ\ WKDW KH ZRXOG KDYH DFFHSWHG WKH SOHD LV LQVXIILFLHQW     WKDW VWDWH WULDO FRXUW ZKLFK IDLOHG WR HPSOR\ mUHDVRQDEOH
WR HVWDEOLVK SUHMXGLFH ,QVWHDG WKRVH FRXUWV KDYH UHTXLUHG WKH GHIHQGDQW
WR FRPH IRUZDUG ZLWK DGGLWLRQDO REMHFWLYH HYLGHQFH WR SURYH WKDW WKH
                                                                              SUREDELOLW\l VWDQGDUG ZKHQ HYDOXDWLQJ FODLP RI LQHIIHFWLYH
GHIHQGDQW ZRXOG KDYH DFFHSWHG WKH SOHD RIIHU 3DWHUV Y 8QLWHG 6WDWHV
                                                                              DVVLVWDQFHRIFRXQVHOGXULQJSOHDQHJRWLDWLRQXQUHDVRQDEO\
 )G   WK &LU  8QLWHG 6WDWHV Y *RUGRQ  )G        DSSOLHGFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW
  G &LU  2XU FLUFXLW KDV QRW H[SOLFLWO\ DGRSWHG VXFK D
UHTXLUHPHQW DOWKRXJK LQ 7XUQHU WKLV FRXUW DSSURYHG RI D GLVWULFW FRXUWjV     '$SSURSULDWH+DEHDV5HOLHI
GHFLVLRQ ZKLFK FRQFOXGHG WKDW WKH GHIHQGDQW KDG RIIHUHG VXIILFLHQW
REMHFWLYH HYLGHQFH LQ WKDW KH PDGH D FRXQWHURIIHU WR WKH JRYHUQPHQW WKDW     ,Q:LOOLDPVWKH6XSUHPH&RXUWHYDOXDWHGZKHWKHUDVWDWH
KH ZRXOG KDYH DFFHSWHG WKH JRYHUQPHQWjV SOHD 7XUQHU  )G DW 
6WULFNODQG KRZHYHU RQO\ UHTXLUHV WKDW D GHIHQGDQW GHPRQVWUDWH WKDW WKHUH
                                                                              FRXUW KDG LQFRUUHFWO\ IUDPHG LWV OHJDO DQDO\VLV RI WKH
LV D mUHDVRQDEOH SUREDELOLW\l WKDW WKH UHVXOW RI WKH SURFHHGLQJ ZRXOG KDYH    SHWLWLRQHUjVLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPLQOLJKWRI
EHHQ GLIIHUHQW 7KH 6XSUHPH &RXUW KDV LPSRVHG QR UHTXLUHPHQW WKDW WKH         FOHDUO\ HVWDEOLVKHG 6XSUHPH &RXUW SUHFHGHQW  7ZR RI WKH
GHIHQGDQW PHHW KLV EXUGHQ RI SURRI WKURXJK REMHFWLYH HYLGHQFH
    0DJDQDY+RIEDXHU                             1R       1R                            0DJDQDY+RIEDXHU             

  $ 1R,ZDVQjWDZDUHRIWKDW0\LPSUHVVLRQDQGLW                  +HFRQILUPHGFRXQVHOKDGDSSULVHGKLPRIWKHSOHDRIIHU
     VWLOOLVWKDWWKHPD[LPXPWKDWKHFRXOGJHWIRURQH                +HZDVDOVRDZDUHWKHSHRSOHKDGRIIHUHGWRGLVPLVVWZR
     WUDQVDFWLRQZDVWHQ\HDUV                                          FKDUJHVDQGUHFRPPHQGDVHQWHQFHRI\HDUVRQWKH
                                                                         FKDUJH RI GHOLYHU\ RI FRFDLQH  )XUWKHU GHIHQGDQW
,G DW  HPSKDVLV DGGHG  7R GLVSHO DQ\ GRXEW DV WR     WHVWLILHG KH ZDV DZDUH WKH FRFDLQH FKDUJHV FDUULHG
ZKHWKHU:DUWHOODGLGQRWXQGHUVWDQGWKHUHOHYDQWVWDWXWHWKH            SHQDOWLHV RI XS WR  \HDUV LQFDUFHUDWLRQ  'HIHQGDQW
SURVHFXWRUDVNHG                                                        VWDWHGKHEHOLHYHGWKHRIIHUZDVDJRRGRIIHUEXWKHIHOW
                                                                         KHFRXOGZLQDWWULDOVLQFHKHKDGVRPHJRRGLVVXHV
  4 'LG\RXWHOO>0DJDQD@ZKDWWKHPD[LPXPPLQLPXP
     FRXOGEHLQWKLVFDVH"                                            ,G7KHWULDOFRXUWWKHQFRQFOXGHG
  $ <HV,WROGKLPWKDWnQR,GLGQjW,WROGKLPWKDW              'HIHQGDQW NQRZLQJO\ UHMHFWHG WKH SOHD RIIHU  +H ZDV
     KHZDVJRLQJWRJHWWHQ\HDUVZKHWKHUKHZHQWWR                    DZDUH LW ZDV D JRRG RIIHU LQ OLJKW RI WKH SRWHQWLDO
     WULDORUGLGQjWJRWRWULDO                                        SHQDOWLHVKHZDVIDFLQJ+RZHYHUKHEHOLHYHGKHZRXOG
                                                                         QRWEHFRQYLFWHGRUDWWKHOHDVWKHZRXOGEHFRQYLFWHG
,GDWHPSKDVLVDGGHG$VERWKWKHVWDWHFRXUWVDQGWKH            RIDOHVVHURIIHQVHDQGRUUHFHLYHOHVVHUVHQWHQFHV(YHQ
GLVWULFWFRXUWDSSHDUWRKDYHFRQFHGHG:DUWHOODjVFRPSOHWH              DVVXPLQJ GHIHQGDQW EHOLHYHG KH ZRXOG UHFHLYH
LJQRUDQFH RI WKH UHOHYDQW ODZ XQGHU ZKLFK KLV FOLHQW ZDV        FRQFXUUHQWVHQWHQFHVIRUKLVFRQYLFWLRQVE\GHIHQGDQWjV
FKDUJHG DQG KLV FRQVHTXHQW JURVV PLVDGYLFH WR KLV FOLHQW        RZQ WHVWLPRQ\ KH NQHZ WKDW LI FRQYLFWHG KH FRXOG
UHJDUGLQJWKHFOLHQWjVSRWHQWLDOSULVRQVHQWHQFHFHUWDLQO\IHOO         UHFHLYH VHQWHQFHV RI XS WR  \HDUV  ,W LV FOHDU IURP
EHORZ DQ REMHFWLYH VWDQGDUG RI UHDVRQDEOHQHVV XQGHU                GHIHQGDQWjVWHVWLPRQ\WKDWKHFKRVHWRWDNHDFKDQFHE\
SUHYDLOLQJSURIHVVLRQDOQRUPV                                           JRLQJWRWULDO
  7KHUHIRUH WKLV FDVH KLQJHV QRW RQ ZKHWKHU :DUWHOODjV        ,G DW   %DVHG RQ WKHVH GHWHUPLQDWLRQV WKH WULDO FRXUW
SHUIRUPDQFH ZDV LQDGHTXDWH EXW UDWKHU RQ ZKHWKHU WKH           FRQFOXGHGDVDPDWWHURIODZWKDW0DJDQDjVFRXQVHOZDVQRW
0LFKLJDQ&RXUWRI$SSHDOVjVFRQFOXVLRQWKDW0DJDQDFRXOG               LQHIIHFWLYH7KHWULDOFRXUWVWDWHGWKDWmGHIHQGDQWZRXOGQRW
QRW SURYH SUHMXGLFH ZDV FRQWUDU\ WR RU DQ XQUHDVRQDEOH         KDYHDFFHSWHGWKHSOHDRIIHUVRWKDWKHZDVQRWSUHMXGLFHGE\
DSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW            FRXQVHOjVUHSUHVHQWDWLRQ7KHUHIRUHGHIHQGDQWLVQRWHQWLWOHG
,QLWVUHYLHZRIWKHVWDWHWULDOFRXUWjVGHFLVLRQWKH0LFKLJDQ        WRUHOLHIl,G
&RXUWRI$SSHDOVDIILUPHGWKHWULDOFRXUWjVFRQFOXVLRQWKDWWKH
UHOHYDQWOHJDOVWDQGDUGDJDLQVWZKLFK0DJDQDjVFODLPVKRXOG               2Q DSSHDO WKH 0LFKLJDQ &RXUW RI $SSHDOV VWDWHG WKDW
EHPHDVXUHGZDVWKHIROORZLQJm,IWKHWULDOFRXUWGHWHUPLQHV         XQGHUUHOHYDQW0LFKLJDQODZLIWKHGHIHQGDQWFDQSURYHWKDW
WKDWWKHGHIHQGDQWZRXOGQRWKDYHDFFHSWHGWKHRIIHUWKHQWKH         KHZRXOGKDYHDFFHSWHGWKHSOHDRIIHUWKHQWKHGHIHQGDQWZDV
GHIHQGDQWZDVQRWSUHMXGLFHGDQGLVQRWHQWLWOHGWRUHOLHIRQ          SUHMXGLFHGDQGKHZRXOGEHHQWLWOHGWRUHOLHI,IKRZHYHUWKH
KLV LQHIIHFWLYH DVVLVWDQFH FODLPl  3HRSOH Y 0DJDQD 1R      WULDO FRXUW GHWHUPLQHG WKDW WKH GHIHQGDQW ZRXOG QRW KDYH
 0LFK &W $SS $SULO    $V GLVFXVVHG         DFFHSWHGWKHRIIHUWKHQWKHGHIHQGDQWZDVQRWSUHMXGLFHGDQG
HDUOLHU KRZHYHU XQGHU 6WULFNODQG DQG /RFNKDUW WKH             LV QRW HQWLWOHG WR UHOLHI RQ KLV LQHIIHFWLYH DVVLVWDQFH FODLP
DSSOLFDEOH6XSUHPH&RXUWSUHFHGHQWVDGHIHQGDQWZKRFODLPV            3HRSOH Y 0DJDQD 1R  DW  0LFK &W $SS
WKDWKLVWULDOFRXQVHOJDYHKLPJURVVPLVDGYLFHDERXWZKHWKHU          $SULO7KH&RXUWRI$SSHDOVWKHQGHIHUUHGWRWKH
WR DFFHSW RU UHMHFW D SOHD RIIHU PXVW SURYH  WKDW KLV    WULDOFRXUWjV ILQGLQJ7KH&RXUWRI$SSHDOVVWDWHGm>:@H
FRXQVHOjVSHUIRUPDQFHZDVREMHFWLYHO\GHILFLHQWDQGWKDW          FRQFOXGHWKDWWKHWULDOFRXUWjVILQGLQJWKDWGHIHQGDQWZRXOG
    0DJDQDY+RIEDXHU                            1R       1R                         0DJDQDY+RIEDXHU         

QRWKDYHDFFHSWHGWKHSOHDRIIHULVVXSSRUWHGE\WKHUHFRUG            $ 2EYLRXVO\ ,jP ZURQJ EXW , VWLOO IHHO WKDW \RX FDQjW
'HIHQGDQWWHVWLILHGWKDWKHIHOWWKDWKHFRXOGZLQDWWULDORU             VWDFNVHQWHQFHVIRUWKHVDPHRIIHQVHHYHQWKRXJKWKHUH
WKDW KH ZRXOG EH FRQYLFWHG RI D OHVVHU RIIHQVH  +H DOVR        LVDFRQVSLUDF\LQYROYHG$QG,XQGHUVWDQGFRQVSLUDF\
WHVWLILHG WKDW KH ZDV DZDUH WKDW WKH PD[LPXP VHQWHQFH KH          ODZ LV NLQG RI FRQYROXWHG EXW WKDWjV VWLOO P\
FRXOG JHW ZRXOG EH WZHQW\ \HDUVj LPSULVRQPHQWl  ,G               LPSUHVVLRQ
%HFDXVHLWFRQFOXGHGWKDWWKHWULDOFRXUWjVILQGLQJWKDW0DJDQD
ZRXOGQRWKDYHDFFHSWHGWKHSOHDZDVQRWFOHDUO\HUURQHRXV             4 6RWRFODULI\GLG\RXHYHUWHOO0U0DJDQDWKDWD
WKH 0LFKLJDQ &RXUW RI $SSHDOV KHOG WKDW 0DJDQD ZDV QRW            FRQYLFWLRQ IRU GHOLYHU\ DQG D FRQYLFWLRQ IRU
SUHMXGLFHGDQGZDVQRWWKHUHIRUHHQWLWOHGWRUHOLHI6HHLG            FRQVSLUDF\ LQ KLV GUXJ GHOLYHU\ FRXOG UXQ
                                                                           FRQVHFXWLYH"
  %RWKWKHVWDWHWULDOFRXUWDQG0LFKLJDQ&RXUWRI$SSHDOV
FRQFOXGHG WKDW HYHQ LI WULDO FRXQVHOjV SHUIRUPDQFH ZDV          $ 1R,QHYHUWROGKLPWKDW
FRQVWLWXWLRQDOO\GHILFLHQW0DJDQDFRXOGQRWSURYHSUHMXGLFH
EHFDXVHKHGLGQRWHVWDEOLVKWKDWEXWIRUKLVWULDOFRXQVHOjV        ,GHPSKDVLVDGGHG2QFURVVH[DPLQDWLRQE\WKHVWDWHWKH
HUURQHRXVDGYLFHKHZRXOGKDYHDFFHSWHGWKHSOHD%HFDXVH           SURVHFXWRUDVNHG
WKH VWDWH FRXUWV GLG QRW GLVFXVV WKH TXHVWLRQ RI GHILFLHQW
SHUIRUPDQFH ZH ZLOO DVVXPH WKDW WKH\ FRQFOXGHG WKDW             4 +DG\RXDGYLVHGKLPRIZKDWWKHPD[LPXPSHQDOW\
:DUWHOODjV SHUIRUPDQFH ZDV REMHFWLYHO\ GHILFLHQW XQGHU                ZRXOGEHLQWKLVFDVH"
6WULFNODQG  ,QGHHG LW ZRXOG EH KDUG WR LPDJLQH KRZ
:DUWHOODjVDGYLFHGXULQJWKHSOHDQHJRWLDWLRQSURFHVVFRXOG             $ ,I\RXZHUHFRQYLFWHGRQDOOWKUHHFKDUJHV"
KDYH EHHQ PRUH LQDGHTXDWH  $W WKH *LQWKHU KHDULQJ KH         4 <HV
WHVWLILHGDVWRKLVXQGHUVWDQGLQJRIWKHVWDWHjVSOHDRIIHUDV
IROORZVm>0@\XQGHUVWDQGLQJRIWKHSOHDDJUHHPHQWZDVLI             $ <HDK,DGYLVHGKLPLWZRXOGEHWHQ\HDUV
KH SOHG RQ WKH QRVH KHjG JHW WHQ \HDUV DQG WKDWjV WKH
LQIRUPDWLRQ WKDW , DP LPSDUWLQJ WR 0U 0DJDQDl  *LQWKHU       4 7KDWjVZKDW\RXWROGKLP"
+UjJ7UDW+HWKHQVWDWHGWKDWKHDGYLVHG0DJDQDHLWKHU
LPPHGLDWHO\EHIRUHRURQWKHGD\RIWULDOWKDWmKHKDGQRWKLQJ         $ <HV
WR ORVH VLQFH WKH\ ZHUHQjW JRLQJ WR GR DQ\WKLQJ  7KH\
ZHUHQjWJRLQJWRRIIHUKLPDQ\WKLQJVRKHPLJKWMXVWDVZHOO           

JRWRWULDOl,GDW7KHIROORZLQJH[FKDQJHWKHQRFFXUUHG
                                                                        4 6LUGLG\RXDGYLVH\RXUFOLHQWWKDWLQHDFKFDVHWKHUH
  4 :K\ZDVLW\RXULPSUHVVLRQWKDWKHKDGQRWKLQJWR                     ZDV D PDQGDWRU\ PLQLPXP RI WHQ \HDUV LI
     ORVH"                                                                 FRQYLFWHG"
  $ :HOOP\LPSUHVVLRQDQGP\LPSUHVVLRQLVVWLOOWKDW              $ 1R
     \RX FDQjW VWDFN FRQFXUUHQW RIIHQVHV  <RX FDQjW
     PDNHWKHPUXQFRQVHFXWLYHO\                                 4 <RXGLGQjWWHOOKLPWKDW"
  

                                                                   $ 1R,GLGQjW
                                                                        4 :HUH\RXDZDUHRIWKDW"