Court Opinion

ID: 2970449
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:13:13.033316+00
Date Added: 2024-06-11T12:28:28.247633
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

 81,7(' 67$7(6 2) $0(5,&$        ;
           3ODLQWLII$SSHOOHH     
                                   
                                     1R
           Y                      
                                    !
                                   
 s8$1 5(<(6                       
                   'HIHQGDQW 
                                   
 s8$1 $ $&(9('2                  
          &ODLPDQW$SSHOODQW 
                                   
                                   
                                  1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
     IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
    1Rn5REHUW+&OHODQG'LVWULFWsXGJH
                    $UJXHG$XJXVW
              'HFLGHGDQG)LOHG$XJXVW

    
     7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl
ILOHG RQ $XJXVW     2Q 2FWREHU   WKH FRXUW GHVLJQDWHG WKH
RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ

                                    
         8QLWHG6WDWHVY5H\HV                           1R        1R                         8QLWHG6WDWHVY5H\HV       

    %HIRUH68+5+(,15,&+DQG%$7&+(/'(5&LUFXLW                             RWKHU VDQFWLRQV DV QRWHG DERYH WKLV LV QRW QHFHVVDULO\ DQ
               sXGJHV/,77/('LVWULFWsXGJH

                              DEXVHRIGLVFUHWLRQ6HHLG
                       BBBBBBBBBBBBBBBBB                                                              ,,,&RQFOXVLRQ
                             &2816(/                                             )RUWKHIRUHJRLQJUHDVRQVWKHMXGJPHQWRIWKHGLVWULFWFRXUW
                                                                              LV$)),50('
$5*8('6WHYHQs9DQGHU$UN*UDQG5DSLGV0LFKLJDQ
IRU$SSHOODQW.DWKOHHQ0RUR1HVL$66,67$1781,7('
67$7(6 $77251(< 'HWURLW 0LFKLJDQ IRU $SSHOOHH
21 %5,()  s (GPXQG )URVW %D\ &LW\ 0LFKLJDQ IRU
$SSHOODQW  .DWKOHHQ 0RUR 1HVL $66,67$17 81,7('
67$7(6$77251(<'HWURLW0LFKLJDQIRU$SSHOOHH
                       BBBBBBBBBBBBBBBBB
                           23,1,21
                       BBBBBBBBBBBBBBBBB
  68+5+(,15,&+ &LUFXLW sXGJH  &ODLPDQW$SSHOODQW
sXDQ$$FHYHGRDSSHDOVIURPWKHILQDORUGHURIIRUIHLWXUH
DQGIURPWKHRUGHUGHQ\LQJ&ODLPDQWjVPRWLRQWRVHWDVLGH
MXGJPHQWXQGHU5XOHE:H$)),50
                           ,%DFNJURXQG
  7KLVFDVHDULVHVRXWRIDFULPLQDOIRUIHLWXUHDFWLRQXQGHU
86&2Q'HFHPEHUsXDQ5H\HVSOHG
JXLOW\WRFRQVSLULQJWRSRVVHVVZLWKLQWHQWWRGLVWULEXWHDQGWR
GLVWULEXWHPDULMXDQD3XUVXDQWWRKLVSOHDDJUHHPHQW5H\HV
DJUHHGWRIRUIHLWKLVLQWHUHVWLQSURSHUW\XVHGWRFRPPLWWKH
RIIHQVH LQFOXGLQJ UHDO SURSHUW\ ORFDWHG DW  (OHDQRU
+RXVWRQ7H[DV2QsXQHWKHGLVWULFWFRXUWHQWHUHG
DSUHOLPLQDU\RUGHURIIRUIHLWXUHUHJDUGLQJWKHSURSHUW\7KH
*RYHUQPHQWJDYHQRWLFHRIWKHFRQWHPSODWHGIRUIHLWXUHWRDOO
NQRZQSRWHQWLDOO\LQWHUHVWHGSDUWLHVLQFOXGLQJ5H\HVjVZLIH

     

      7KH +RQRUDEOH ) $ /LWWOH sU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
:HVWHUQ 'LVWULFW RI /RXLVLDQD VLWWLQJ E\ GHVLJQDWLRQ
    8QLWHG6WDWHVY5H\HV                           1R        1R                        8QLWHG6WDWHVY5H\HV        

IDFWRUVmZKHWKHUWKHSDUW\jVIDLOXUHLVGXHWRZLOOIXOQHVV         5RVDOLQGD5H\HVDQGWRsXDQ$FHYHGRIDWKHURI5RVDOLQGD
EDGIDLWKRUIDXOWZKHWKHUWKHDGYHUVDU\ZDVSUHMXGLFHG             5H\HV
E\WKHGLVPLVVHGSDUW\jVFRQGXFWZKHWKHUWKHGLVPLVVHG
SDUW\ ZDV ZDUQHG WKDW IDLOXUH WR FRRSHUDWH FRXOG OHDG WR            2Q$XJXVWsXDQ$FHYHGRILOHGDSHWLWLRQDQGFODLP
GLVPLVVDO DQG  ZKHWKHU OHVV GUDVWLF VDQFWLRQV ZHUH             DVDZDUUDQW\GHHGKROGHUWRWKHUHDOSURSHUW\2QsDQXDU\
LPSRVHGRUFRQVLGHUHGEHIRUHGLVPLVVDOZDVRUGHUHGl.QROO                WKH 8QLWHG 6WDWHV VHUYHG D UHTXHVW IRU SURGXFWLRQ RI
Y $P 7HO 	 7HOHJUDSK &R  )G   WK &LU       GRFXPHQWV XSRQ $FHYHGR  6SHFLILFDOO\ WKH 8QLWHG 6WDWHV
$OWKRXJKQRRQHIDFWRULVGLVSRVLWLYHGLVPLVVDOLV             VRXJKWGLVFRYHU\UHODWHGWR$FHYHGRjVFODLPWKDWKHZDVWKH
SURSHU LI WKH UHFRUG GHPRQVWUDWHV GHOD\ RU FRQWXPDFLRXV            WUXHRZQHURIWKHSURSHUW\7KHUHTXHVWHGGRFXPHQWVZHUH
FRQGXFW                                                                  WREHSURGXFHGZLWKLQWKLUW\GD\VE\0DUFK2Q0D\
                                                                          WKH8QLWHG6WDWHVVHQWDOHWWHUWRFRXQVHODGYLVLQJWKDW
 $FHYHGR KDV WKH EXUGHQ RI VKRZLQJ WKDW KLV IDLOXUHWR           LIWKH*RYHUQPHQWGLGQRWUHFHLYHWKHUHTXLUHGUHVSRQVHE\
FRPSO\ ZDV GXH WR LQDELOLW\ QRW ZLOOIXOQHVV RU EDG IDLWK       0D\WKH8QLWHG6WDWHVZRXOGPRYHIRUGLVPLVVDORI
5HJLRQDO 5HIXVH 6\V ,QF Y ,QODQG 5HFODPDWLRQ &R          KLV FODLP  2Q 0D\   &ODLPDQWjV DWWRUQH\ ID[HG D
)G   WK &LU   7KXV LW LV SUHVXPHG WKDW      OHWWHUWRJRYHUQPHQWFRXQVHOLQGLFDWLQJWKDWKHZRXOGSURYLGH
GLVPLVVDO LV QRW DQ DEXVH RI GLVFUHWLRQ LI WKH SDUW\ KDV WKH   WKH GRFXPHQWV RQ RU EHIRUH 0D\    ,Q WKH OHWWHU
DELOLW\ WR FRPSO\ ZLWK D GLVFRYHU\ RUGHU EXW GRHV QRW           &ODLPDQWjVDWWRUQH\VWDWHGWKDWKHKDGmUHFHLYHGDSDFNDJHRI
&ODLPDQW KDV QRW SURIIHUHG DQ\WKLQJ WR RYHUFRPH WKLV               GRFXPHQWVDSSUR[LPDWHO\RQHLQFKWKLFNIURPP\FOLHQWlDQG
SUHVXPSWLRQ &ODLPDQW GLG QRW ILOH KLV SHWLWLRQ XQWLO ILYH        WKDWKHQHHGHGWRUHYLHZWKHP1RWKLQJZDVIRUWKFRPLQJ
PRQWKV DIWHU KLV ZLIHjV GHDWK QRU GLG KH H[SODLQ KRZ KLV       KRZHYHU
PRWKHUjVLOOQHVVLPSHGHGKLVDELOLW\WRJDWKHUWKHQHFHVVDU\
GRFXPHQWV  +H FODLPV D ODQJXDJH EDUULHU DQG SRRU UHFRUG           2QsXQHWKH8QLWHG6WDWHVILOHGDPRWLRQWRFRPSHO
NHHSLQJEXWKHGLGQRWH[SODLQZK\KHGLGQRWVLJQWKHEDQN              GLVFRYHU\7KH8QLWHG6WDWHVUHTXHVWHGFRSLHVRI&ODLPDQWjV
DXWKRUL]DWLRQVDQGVHQGWKHPRQLQDWLPHO\IDVKLRQVRWKDW               IHGHUDO LQFRPH WD[ UHWXUQV DQG GRFXPHQWV VKRZLQJ DOO
WKH8QLWHG6WDWHVFRXOGVHHNWKHGRFXPHQWVLWVHOI&RXQVHOjV             SD\PHQWVPDGHRQWKHSURSHUW\DW(OHDQRU7KH8QLWHG
FRQGXFWLVDOVRDWWULEXWDEOHWRKLVFOLHQW6HH/LQNY:DEDVK           6WDWHV DOVR VRXJKW DOO SHULRGLF VWDWHPHQWV IRU DOO EDQN
55&R86+DUPRQ)GDW                DFFRXQWV RU DOWHUQDWLYHO\DUHOHDVH2QsXQHWKH
                                                                   8QLWHG6WDWHVUHFHLYHGVRPHRIWKHUHTXHVWHGGRFXPHQWV2Q
                                                                          sXQH   GXULQJ D WHOHSKRQLF VWDWXV FRQIHUHQFH
   1RU GR WKH RWKHU IDFWRUV FKDQJH WKH UHVXOW  7KH 8QLWHG      &ODLPDQW LQGLFDWHG WKDW KH KDG QR DGGLWLRQDO GRFXPHQWV
6WDWHVVXIIHUHGSUHMXGLFHLQWKDWLWFRXOGQRWFRPSO\ZLWKWKH            UHOHYDQWWRWKHGLVFRYHU\UHTXHVW
GLVWULFW FRXUWjV 6HSWHPEHU   GLVFRYHU\ GHDGOLQH
:LWKRXWDQVZHUVWRGRFXPHQWUHTXHVWVWKH*RYHUQPHQWFRXOG                  2QsXQHWKHGLVWULFWFRXUWHQWHUHGDVFKHGXOLQJ
QRW VFKHGXOH GHSRVLWLRQV RU RWKHU GLVFRYHU\  $OWKRXJK             RUGHUSXUVXDQWWR)HG5&LY3I7KHRUGHUUHTXLUHG
&ODLPDQWGLGQRWKDYHDSULRUZDUQLQJWKH8QLWHG6WDWHVjV                WKDWDOOGLVFRYHU\LQFOXGLQJUHVSRQVHVWRGLVFRYHU\UHTXHVWV
PRWLRQWRVWULNHSURYLGHGVRPHQRWLFH&I+DUPRQ)G              EHFRPSOHWHGE\6HSWHPEHU$OVRRQsXQH
DWKROGLQJWKDWWKHDSSHOODQWFRXOGQRWFRPSODLQRIODFN             WKH8QLWHG 6WDWHVPDGHDVHFRQGUHTXHVWIRUSURGXFWLRQRI
RIQRWLFHZKHUHWKHGHIHQGDQWKDGILOHGDPRWLRQWRGLVPLVV             GRFXPHQWV7KH*RYHUQPHQWVRXJKWFRSLHVRIDOOGRFXPHQWV
)LQDOO\DOWKRXJKWKHGLVWULFWFRXUWGLGQRWH[SUHVVO\FRQVLGHU           VKRZLQJWKHVRXUFHRIYDULRXVFDVKSD\PHQWVPDGHIRUWKH
                                                                          SURSHUW\DQGUHTXHVWHGWKDW&ODLPDQWVLJQEDQNDXWKRUL]DWLRQ
       8QLWHG6WDWHVY5H\HV                             1R    1R                              8QLWHG6WDWHVY5H\HV         

IRUPVVRWKDWWKH8QLWHG6WDWHVFRXOGREWDLQEDQNUHFRUGVRQ                 5XOH E QRWZLWKVWDQGLQJ WKH GLVWULFW FRXUW KDG
LWVRZQWRYHULI\WKHVRXUFHRIWKHIXQGV2QsXO\             DXWKRULW\XQGHU5XOHGZKLFKLQFRUSRUDWHVWKHVDQFWLRQV
WZRGD\VDIWHUWKHUHVSRQVHZDVGXH&ODLPDQWUHTXHVWHGD                 DOORZHG XQGHU 5XOH E  5XOH G SURYLGHV LQ
IHZPRUHGD\VWRUHVSRQG2QsXO\JRYHUQPHQW                   SHUWLQHQWSDUW
FRXQVHOFDOOHG&ODLPDQWjVDWWRUQH\EXWUHFHLYHGQRUHVSRQVH
2QsXO\WKH*RYHUQPHQWILOHGDPRWLRQWRVWULNH                   ,IDSDUW\IDLOVWRVHUYHDZULWWHQUHVSRQVHWRD
FODLPRUIRURWKHUDSSURSULDWHVDQFWLRQV                                UHTXHVW IRU LQVSHFWLRQ VXEPLWWHG  XQGHU 5XOH  DIWHU
                                                                            SURSHU VHUYLFH RI WKH UHTXHVW WKH FRXUW LQ ZKLFK WKH
   2Q $XJXVW   WKH GLVWULFW FRXUW VHW D KHDULQJ IRU       DFWLRQLVSHQGLQJ RQPRWLRQPD\PDNHVXFKRUGHUVLQ
6HSWHPEHURQWKH*RYHUQPHQWjVPRWLRQWRVWULNH                   UHJDUGWRWKHIDLOXUHDVDUHMXVWDQGDPRQJRWKHUVLWPD\
&ODLPDQWIDLOHGWRILOHDUHVSRQVHDQGRQ$XJXVW                 WDNHDQ\DFWLRQDXWKRUL]HGXQGHUVXESDUDJUDSKV&
WKHGLVWULFWFRXUWjVFDVHPDQDJHUFDOOHG&ODLPDQWjVFRXQVHOWR              RIVXEGLYLVLRQERIWKLVUXOH$Q\PRWLRQVSHFLI\LQJ
QRWLI\ KLP WKDW KH KDG PLVVHG WKH UHVSRQVH GXH GDWH DQG          DIDLOXUHXQGHUFODXVHRURIWKLVVXEGLYLVLRQVKDOO
LQVWUXFWHGKLPWKDWKHFRXOGILOHDPRWLRQIRUOHDYHWRILOHD              LQFOXGHDFHUWLILFDWLRQWKDWWKHPRYDQWKDVLQJRRGIDLWK
ODWH UHVSRQVH DFFRPSDQLHG E\ WKH UHVSRQVH QR ODWHU WKDQ           FRQIHUUHGRUDWWHPSWHGWRFRQIHUZLWKWKHSDUW\IDLOLQJWR
6HSWHPEHU    &ODLPDQW VWLOO GLG QRW FRPSO\  2Q            DQVZHURUUHVSRQGLQDQHIIRUWWRREWDLQVXFKDQVZHURU
6HSWHPEHU   WKH GLVWULFW FRXUW JUDQWHG WKH 8QLWHG           UHVSRQVHZLWKRXWFRXUWDFWLRQ
6WDWHVjVPRWLRQWRVWULNHFODLPDQGFDQFHOHGWKHVFKHGXOHG
KHDULQJ2Q6HSWHPEHUWKHGLVWULFWFRXUWHQWHUHGD             )HG5&LY3G5XOHE&DXWKRUL]HVWKHGLVWULFW
ILQDO RUGHU RI IRUIHLWXUH  7KH FRXUW QRWHG WKDW GXULQJ          FRXUWWRGLVPLVVWKHDFWLRQ)HG5&LY3E&
GLVFRYHU\WKH8QLWHG6WDWHVUHTXHVWHGWKDW&ODLPDQWSURGXFH
GRFXPHQWVVKRZLQJWKHVRXUFHRIFDVKXVHGWRSXUFKDVHWKH                   +HUH WKH 8QLWHG 6WDWHV PDGH WZR UHTXHVWV WR SURGXFH
SURSHUW\ DQG DIWHU &ODLPDQW UHIXVHG WR SURGXFH DQ\ VXFK          GRFXPHQWV$IWHU&ODLPDQWIDLOHGWRUHVSRQGWRWKHVHFRQG
GRFXPHQWVWKH8QLWHG6WDWHVPRYHGWRVWULNHKLVFODLP7KH              UHTXHVWWKHJRYHUQPHQWILOHGWKHPRWLRQWRVWULNH,QWKDW
FRXUW IXUWKHU QRWHG WKDW HYHQ DIWHU WKH FRXUW FRQWDFWHG KLV     PRWLRQ WKH 8QLWHG 6WDWHV UHSUHVHQWHG WKDW LW DWWHPSWHG WR
DWWRUQH\WRJLYHKLPDGGLWLRQDOWLPH&ODLPDQWGLGQRWKLQJ               FRQWDFW &ODLPDQW RQ WZR RFFDVLRQV RQ sXO\   DQG
7KHGLVWULFWFRXUWGLGQRWLQGLFDWHZKLFKSURFHGXUDOUXOHLW              DJDLQ RQ sXO\    7KXV XQGHU 5XOH G DQG
EDVHGWKHGLVPLVVDORQ                                                 E&WKHGLVWULFWFRXUWKDGDXWKRULW\WRGLVPLVVWKHFDVH

   2Q2FWREHU&ODLPDQWILOHGDPRWLRQWRVHWDVLGH                  $OWHUQDWLYHO\WKH8QLWHG6WDWHVDUJXHVWKDWWKHGLVWULFWFRXUW
MXGJPHQWIRUUHKHDULQJRUIRUVWD\RIH[HFXWLRQXQGHU)HG5           KDGDXWKRULW\WRGLVPLVVXQGHU5XOHERU5XOHEDQG
&LY3EDQG,QWKDWPRWLRQ&ODLPDQWDOOHJHGWKDW           LWVLQKHUHQWDXWKRULW\,QUHYLHZLQJDGLVWULFWFRXUWjVGLVPLVVDO
KH KDG DWWHPSWHG WR FRPSO\ mZLWK WKH UHSHDWHG DQG                 XQGHUHLWKHU5XOHERU5XOHEZHFRQVLGHUIRXU
EXUGHQVRPH UHTXHVWV IRU GLVFRYHU\ SURSRXQGHG E\ WKH
DWWRUQH\VIRUWKH*RYHUQPHQWlEXWKDGGLIILFXOWLHVSURGXFLQJ
WKH GRFXPHQWV EHFDXVH &ODLPDQW LV HOGHUO\ KLV (QJOLVK LV
                                                                          LV RQ LWV IDFH DSSURSULDWH RQO\ DV D GHIHQGDQWjV UHPHG\ ZKLOH 5XOH 
                                                                          SURYLGHV PRUH H[SDQVLYH FRYHUDJH E\ FRPSUHKHQGLQJ GLVREHGLHQFH RI
                                                                          SURGXFWLRQ RUGHUV E\ DQ\ SDUW\l   ,G
                                                                              7KH GLVWULFW FRXUW HQWHUHG D VFKHGXOLQJ RUGHU SXUVXDQW WR )HG 5 &LY
    
     7KH *RYHUQPHQW GLG QRW SURYLGH DQ\ DXWKRULW\ WR WKH GLVWULFW FRXUW   3 I ZKLFK VWDWHG LQ SHUWLQHQW SDUW WKDW WKH GHDGOLQH IRU FRPSOHWLQJ
LQ LWV PRWLRQ WR VWULNH FODLP RU IRU RWKHU DSSURSULDWH VDQFWLRQV         GLVFRYHU\ ZDV 6HSWHPEHU  
       8QLWHG6WDWHVY5H\HV                             1R        1R                             8QLWHG6WDWHVY5H\HV           

  )XUWKHUPRUH&ODLPDQWLJQRUHGVHYHUDODPLFDEOHUHTXHVWV                     SRRUDQGKHOLYHVDJUHDWGLVWDQFHIURPKLVDWWRUQH\DQGWKH
IURPWKH8QLWHG6WDWHV7KHJRYHUQPHQWjVUHTXHVWVZHUHQRW                   FRXUW  &ODLPDQW DGGHG WKDW KH GLG QRW NHHS GHWDLOHG DQG
RQHURXVDQGFRXQVHODWRQHSRLQWLQGLFDWHGWKDWKHKDGRQO\                  RUJDQL]HG UHFRUGV DQG QHHGHG KLV FKLOGUHQjV DVVLVWDQFH LQ
mDQ LQFKl RI GRFXPHQWV WR UHYLHZ  0RVW LPSRUWDQWO\ WKH             ORFDWLQJWKHPDQGILQDOO\KHVWDWHGWKDWKHZDVFDULQJIRUKLV
GLVWULFW FRXUW WRRN WKH XQXVXDO VWHS RI FDOOLQJ &ODLPDQWjV            WHUPLQDOO\LOOPRWKHU2Q2FWREHU&ODLPDQWVHUYHG
FRXQVHOWRQRWLI\KLPWKDWKHKDGPLVVHGDILOLQJGHDGOLQHE\                 WKH8QLWHG6WDWHVZLWKWKHUHTXHVWHGEDQNDXWKRUL]DWLRQV2Q
VHYHUDOZHHNVDQGWKHQDOORZLQJKLPWRILOHDODWHUHVSRQVH                  'HFHPEHUWKHGLVWULFWFRXUWGHQLHGWKHPRWLRQ7KH
E\6HSWHPEHU&RXQVHOVWLOOGLGQRWUHVSRQG6XFK                   GLVWULFW FRXUW UXOHG WKDW &ODLPDQW IDLOHG WR VKRZ H[FXVDEOH
GLVUHJDUG RI WKH JUDFLRXVQHVV RI WKH GLVWULFW FRXUW FDQ EH           QHJOHFW RU DQ\ RWKHU UHDVRQ WKDW MXVWLILHG UHOLHI  2Q
FRQVLGHUHGFRQWXPDFLRXV6HH+DUPRQY&6;7UDQVS,QF                    sDQXDU\&ODLPDQWILOHGDQRWLFHRIDSSHDO
)GWK&LU7KDWWKHGLVWULFWFRXUWGLG
QRWDUWLFXODWHLWVFRQVLGHUDWLRQRIOHVVHUVDQFWLRQVGRHVQRW                                              ,,$QDO\VLV
GLFWDWHDGLIIHUHQWUHVXOW6HHLGQRWLQJWKDWWKLV&RXUWKDV
QHYHUKHOGWKDWWKHGLVWULFWFRXUWLVZLWKRXWSRZHUWRGLVPLVV                   :HUHYLHZWKHGLVWULFWFRXUWjVGHQLDORID5XOHEPRWLRQ
DFRPSODLQWDVWKHILUVWDQGRQO\VDQFWLRQVROHO\RQWKHEDVLV                IRUDEXVHRIGLVFUHWLRQ%OXH'LDPRQG&RDO&RY7UXVWHHV
RIFRXQVHOjVFRQGXFW                                                      RIWKH80:$&RPELQHG%HQHILW)XQG)GWK
                                                                              &LUFHUWGHQLHG6&W,QRWKHUZRUGVZH
                         %0LVWDNHRI/DZ                                    PXVWKDYHmDGHILQLWHDQGILUPFRQYLFWLRQWKDWWKHWULDOFRXUW
                                                                              FRPPLWWHG D FOHDU HUURU RI MXGJPHQWl  ,G  TXRWDWLRQ
  &ODLPDQW FRQWHQGV WKDW WKH GLVWULFW FRXUW DEXVHG LWV                 RPLWWHG
GLVFUHWLRQ LQ GLVPLVVLQJ KLV VXLW IRU IDLOLQJ WR FRRSHUDWH LQ
GLVFRYHU\EHFDXVHKHGLGQRWYLRODWHDQ\RUGHU FRPSHOOLQJ                       2Q DSSHDO &ODLPDQW VHHNV UHOLHI XQGHU 5XOH E
GLVFRYHU\+HFLWHV5XOHEZKLFKKHFODLPVDOORZVD                  ZKLFK DOORZV D GLVWULFW FRXUW WR YDFDWH D ILQDO MXGJPHQW
GLVWULFWFRXUWWRGLVPLVVDQDFWLRQRQO\LIDSDUW\YLRODWHVDQ               EHFDXVH RI mPLVWDNH LQDGYHUWHQFH VXUSULVH RU H[FXVDEOH
RUGHU FRPSHOOLQJ GLVFRYHU\  6HH )HG 5 &LY 3 E            QHJOHFWl 7KLV&RXUWKDVVWDWHGWKDWD5XOHEPRWLRQ
SURYLGLQJIRUVDQFWLRQVVSHDNLQJLQWHUPVRIRUGHUV6HH                  LVLQWHQGHGWRSURYLGHUHOLHILQRQO\WZRVLWXDWLRQVZKHQ
DOVR $ :ULJKW 	 0LOOHU )HGHUDO 3UDFWLFH 	 3URFHGXUH                D SDUW\ KDV PDGH DQ H[FXVDEOH PLVWDNH RU DQ DWWRUQH\ KDV
m([FHSWZKHUHQHZ5XOHF>@DGRSWHGLQ                     DFWHG ZLWKRXW DXWKRULW\ RU  ZKHQ WKH MXGJH KDV PDGH D
DSSOLHV5XOHEXVXDOO\KDVQRDSSOLFDWLRQLIWKHUH                 VXEVWDQWLYHPLVWDNHRIODZRUIDFWLQWKHILQDOMXGJPHQWRU
KDVQRWEHHQDFRXUWRUGHUl                                                RUGHU&DFHYLFY&LW\RI+D]HO3DUN)GWK
                                                                              &LU
                                                                               &ODLPDQWPDNHVVHYHUDODUJXPHQWV&ODLPDQWDVVHUWVWKDW
       ,Q VXSSRUW RI WKLV DUJXPHQW &ODLPDQW FLWHV 6RFLHWH ,QWHUQDWLRQDOH
3RXU 3DUWLFLSDWLRQV ,QGXVWULHOOHV (W &RPPHUFLDOHV 6$ Y 5RJHUV 
                                                                              KLVFRQGXFWZDVGXHWRH[FXVDEOHQHJOHFW+HDOVRFRQWHQGV
86   ,Q 5RJHUV WKH GLVWULFW FRXUW KDG EDVHG LWV GLVPLVVDO        WKDW WKH ORZHU FRXUW PDGH D VXEVWDQWLYH PLVWDNH RI ODZ
XSRQ 5XOH ELLL EHFDXVH WKH SDUW\ KDG QRW FRPSOLHG ZLWK D             EHFDXVHLWODFNHGWKHDXWKRULW\WRGLVPLVVKLVVXLW7KDWLV
GLVFRYHU\ RUGHU     7KH &RXUW RI $SSHDOV KRZHYHU KDG XSKHOG WKH
GLVPLVVDO XQGHU 5XOH E 7KH 6XSUHPH &RXUW KHOG WKDW mWKHUH ZDV QR
QHHG WR UHVRUW WR 5XOH El EHFDXVH GLVPLVVDO ZDV EDVHG RQ
                                                                                  
mQRQFRPSOLDQFH ZLWK D GLVFRYHU\ RUGHUl ,G DW  7KH 6XSUHPH &RXUW               &ODLPDQW KDV DEDQGRQHG RQ DSSHDO KLV FODLP IRU UHOLHI XQGHU 5XOH
DGGHG WKDW 5XOH E mDSSHDUV LQ WKDW SDUW RI WKH 5XOHV FRQFHUQHG ZLWK       E ZKLFK DOORZV UHOLHI mIRU DQ\ RWKHU UHDVRQV MXVWLI\LQJ UHOLHI IURP
WULDOV DQG ZKLFK ODFNV VSHFLILF UHIHUHQFHV WR GLVFRYHU\ )XUWKHU WKDW 5XOH   WKH RSHUDWLRQ RI WKH MXGJPHQWl )HG 5 &LY 3 E
     8QLWHG6WDWHVY5H\HV                           1R       1R                           8QLWHG6WDWHVY5H\HV         

&ODLPDQWFRQWHQGVWKDWEHFDXVHKHGLGQRWYLRODWHDQ\RUGHU             GHDGOLQHWKHSHUIRUPDQFHRIWKHFOLHQWjVDWWRUQH\PXVWDOVR
FRPSHOOLQJGLVFRYHU\WKHGLVWULFWFRXUWZDVQRWDXWKRUL]HGWR           EHWDNHQLQWRDFFRXQWl$OOHQY0XUSK)G
GLVPLVVWKHDFWLRQ+HFKDOOHQJHVWKHXQGHUO\LQJGLVPLVVDORQ           WK&LUFLWLQJ3LRQHHUY,QY6HUYV&RY%UXQVZLFN
WKLVOHJDOJURXQGDVZHOO                                               $VVRFV/WG3jVKLS86:HQRWHG
                                                                         WKDWm>W@KH6XSUHPH&RXUWKDVH[SUHVVO\UHMHFWHGDVXJJHVWLRQ
  &ODLPDQWGLGQRWDUJXHPLVWDNHRIODZLQKLV5XOHE                SUHYLRXVO\PDGHE\WKLVFRXUWWKDWµLWZRXOGEHLQDSSURSULDWH
PRWLRQ WKXV IDLOLQJ WR SUHVHUYH WKH LVVXH RQ DSSHDO  $V D   WRSHQDOL]H>WKHFOLHQWV@IRUWKHRPLVVLRQVRIWKHLUDWWRUQH\jl
JHQHUDOUXOHDSSHDOIURPWKHGHQLDORID5XOHEPRWLRQ              RQ WKH FRQWUDU\ WKH &RXUW KHOG FOLHQWV PXVW mEH KHOG
GRHV QRW HQFRPSDVV UHYLHZ RI WKH XQGHUO\LQJ MXGJPHQW             DFFRXQWDEOH IRU WKH DFWV DQG RPLVVLRQV RI WKHLU FKRVHQ
+RRGY+RRG)GWK&LUSHUFXULDP               FRXQVHOl  ,G TXRWLQJ 3LRQHHU  86 DW   6HH
+RZHYHU EHFDXVH KLV 5XOH E PRWLRQ ZDV ILOHG WZHQW\          0F&XUU\Y$GYHQWLVW+HDOWK6\V6XQEHOW,QFo
GD\V DIWHU HQWU\ RI WKH XQGHUO\LQJ IRUIHLWXUH ZLWKLQ WKH        )Go:/DW
WK&LU$XJ
DSSOLFDEOHDSSHDOSHULRGDOOLVVXHVUHJDUGLQJWKHXQGHUO\LQJ            KROGLQJWKDWQHLWKHUVWUDWHJLFPLVFDOFXODWLRQE\FRXQVHOQRU
RUGHU VWULNLQJ FODLP DUH SURSHUO\ EHIRUH WKLV &RXUW  6HH       PLVLQWHUSUHWDWLRQRIWKHODZFRQVWLWXWHmPLVWDNHlXQGHU5XOH
%DUULHUY%HDYHU)GWK&LU$              E)+&(TXLWLHV//&Y0%//LIH$VVXU&RUS
FODLPRIOHJDOHUURULQWKHXQGHUO\LQJMXGJPHQWIDOOVZLWKLQ             )GWK&LUKROGLQJWKDWDQDWWRUQH\jV
WKH GHILQLWLRQ RI PLVWDNH XQGHU 5XOH E  3LHUFH Y       PLVWDNHRIODZLVQRWDSURSHUEDVLVIRU5XOHEUHOLHI
8QLWHG0LQH:RUNHUVRI$P:HOIDUH	5HWLUHPHQW)XQGIRU                +HUHFRXQVHOZDVGLODWRU\LQSURYLGLQJLQLWLDOGLVFRYHU\WKUHH
 DQG   )G   WK &LU  FLWLQJ       PRQWKVDIWHULWZDVGXHIDLOLQJWRSURYLGHIXUWKHUUHTXHVWHG
%DUULHU)GDW                                             GLVFRYHU\ DQG LQ IDLOLQJ WR UHVSRQG WR WKH 8QLWHG 6WDWHVjV
                                                                         PRWLRQ WR VWULNH HYHQ DIWHU WKH GLVWULFW FRXUW VXD VSRQWH
                     $([FXVDEOH1HJOHFW                                JUDQWHGDQH[WHQVLRQRIWLPH$OWKRXJKFRXQVHODOOHJHGWKDW
                                                                         &ODLPDQWjV OLPLWHG (QJOLVK ZDV SUREOHPDWLF KH
  &ODLPDQWPDLQWDLQVWKDWKLVQHJOHFWZDVH[FXVDEOHEHFDXVH              DFNQRZOHGJHG $FHYHGRjV FKLOGUHQ DVVLVWHG KLP  &ODLPDQW
KHGLGQRWYLRODWHDQ\FRXUWRUGHU7KXVKHHTXDWHVH[FXVDEOH          DOVR FODLPHG WKDW $FHYHGR KDG EHHQ mEXUGHQHG ZLWK WKH
QHJOHFWWRFRQVLGHUDWLRQRIWKHFXOSDELOLW\IDFWRURImZKHWKHU           WHUPLQDO LOOQHVV RI KLV PRWKHUl ZKR ZDV WUDQVIHUUHG WR D
WKH SDUW\jV IDLOXUH WR FRRSHUDWH LQ GLVFRYHU\ LV GXH WR         QXUVLQJKRPHZKHUHKHYLVLWHGKHUGDLO\&RXQVHOIDLOHGWR
ZLOOIXOQHVVEDGIDLWKRUIDXOWl+DUPRQY&6;7UDQVS            H[SODLQWKHQDWXUHRUGXUDWLRQRIWKHFDUHKHZDVUHTXLUHGWR
)GWK&LU%HFDXVHWKHTXHVWLRQLV               SURYLGHKRZHYHU&I%XFNY86'HSWRI$JULF)DUPHUV
ZKHWKHU WKH MXGJPHQW VKRXOG EH VHW DVLGH XQGHU 5XOH              +RPH$GPLQ)GWK&LUKROGLQJWKDW
EDQGQRWPHUHO\ZKHWKHUWKHGLVPLVVDOZDVLPSURSHU             VXGGHQLOOQHVVRIFRXQVHOZDVQRWH[FXVDEOHQHJOHFWZKHUH
WKH VFRSH RI RXU LQTXLU\ LV QDUURZ  7KDW LV XQGHU 5XOH      FRXQVHO GLG QRW SURYLGH GHWDLOV RI KLV LOOQHVV  $V IRU KLV
E D SDUW\ PXVW ILUVW GHPRQVWUDWH H[FXVDEOH QHJOHFW        IDLOXUHWRILOHDUHVSRQVHWRWKHPRWLRQE\WKHH[WHQGHGGXH
EHIRUH RWKHU IDFWRUV VXFK DV ZKHWKHU D GHIHQGDQW KDV D          GDWHFRXQVHODFNQRZOHGJHGLQKLVDIILGDYLWWKDWKHZDVDZDUH
PHULWRULRXV GHIHQVH DQG SUHMXGLFH WR WKH SODLQWLII ZLOO EH       RIWKHGHDGOLQHEXWWKDWKHmZDVXQDEOHWRPHHWWKDWGHDGOLQH
FRQVLGHUHG:DLIHUVRQJ/WGY&ODVVLF0XVLF9HQGLQJ              GXH WR WKH SUHVV RI RWKHU EXVLQHVV DQG SHUVRQDO EXVLQHVVl
)GWK&LU                                         *LYHQ VXFK D YDJXH H[SODQDWLRQ WKH GLVWULFW FRXUW GLG QRW
                                                                         DEXVHLWVGLVFUHWLRQZKHQLWGHQLHG5XOHEUHOLHIEDVHGRQ
   $V WKLV &RXUW KDV KHOG mD GHWHUPLQDWLRQ RI µH[FXVDEOH        &ODLPDQWjVIDLOXUHWRGHPRQVWUDWHH[FXVDEOHQHJOHFW
QHJOHFWjGRHVQRWWXUQVROHO\RQZKHWKHUWKHFOLHQWKDVGRQH
DOOWKDWKHUHDVRQDEO\FRXOGGRWRHQVXUHFRPSOLDQFHZLWKD