Court Opinion

ID: 2970544
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:15:56.719427+00
Date Added: 2024-06-11T11:43:30.113660
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

 /$55< ' 60,7+                 ;
          3HWLWLRQHU$SSHOODQW 
                                  
                                     1R
            Y                    
                                   !
                                  
 *(5$/' +2)%$8(5                 
          5HVSRQGHQW$SSHOOHH 
                                 1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
  IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV
   1Rn'RXJODV:+LOOPDQ'LVWULFWsXGJH
                       $UJXHG0D\
             'HFLGHGDQG)LOHG'HFHPEHU
           %HIRUH6,/(5DQG&/$<&LUFXLWsXGJHV
               2%(5'25)(5'LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('  ) 0DUWLQ 7LHEHU 67$7( $33(//$7(
'()(1'(5 2)),&( /DQVLQJ 0LFKLJDQ IRU $SSHOODQW
sDQHW $ 9DQ &OHYH 2)),&( 2) 7+( $77251(<

    
     7KH +RQRUDEOH /RXLV ) 2EHUGRUIHU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH 'LVWULFW RI &ROXPELD VLWWLQJ E\ GHVLJQDWLRQ

                                    
     6PLWKY+RIEDXHU                             1R

*(1(5$/ +$%($6 &25386 ',9,6,21 /DQVLQJ
0LFKLJDQ IRU $SSHOOHH  21 %5,()  ) 0DUWLQ 7LHEHU
67$7( $33(//$7( '()(1'(5 2)),&( /DQVLQJ
0LFKLJDQIRU$SSHOODQWsDQHW$9DQ&OHYH2)),&(2)
7+( $77251(< *(1(5$/ +$%($6 &25386
',9,6,21/DQVLQJ0LFKLJDQIRU$SSHOOHH
  &/$< s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
6,/(5 s MRLQHG  2%(5'25)(5 ' s SS 
GHOLYHUHGDVHSDUDWHRSLQLRQFRQFXUULQJLQSDUWDQGGLVVHQWLQJ
LQSDUW
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  &/$< &LUFXLW sXGJH  3HWLWLRQHU /DUU\ 'RQQHOO 6PLWK
DSSHDOVIURPWKHGLVWULFWFRXUWjVRUGHUGHQ\LQJ3HWLWLRQHUjV
DSSOLFDWLRQ IRU D ZULW RI KDEHDV FRUSXV ILOHG SXUVXDQW WR
86&2QDSSHDO3HWLWLRQHUDUJXHVWKDWEHFDXVH
RIKLVWULDOFRXQVHOjVFRQIOLFWRILQWHUHVWDVWUXFWXUDOGHIHFWLQ
3HWLWLRQHUjVWULDORFFXUUHGVXFKWKDW3HWLWLRQHUZDVGHQLHGKLV
6L[WK$PHQGPHQWULJKWWRWKHHIIHFWLYHDVVLVWDQFHRIFRXQVHO
XQGHUWKHDXVSLFHVRI&X\OHUY6XOOLYDQ86
   3HWLWLRQHUjV FODLP VHHNV WR H[WHQG 6XOOLYDQjV OHVVHQHG
VWDQGDUGRISURRIQHFHVVDU\IRUDGHIHQGDQWWRVXFFHHGRQD
FODLPIRULQHIIHFWLYHDVVLVWDQFHFRXQVHOEDVHGRQDFRQIOLFWRI
LQWHUHVW LQYROYLQJ MRLQW UHSUHVHQWDWLRQ WR RWKHU W\SHV RI
DWWRUQH\FRQIOLFWVRILQWHUHVW%HFDXVHWKHUXOHVRXJKWWREH
LQYRNHGE\3HWLWLRQHULQRUGHUWRVXFFHHGRQKLVFODLPLVD
QHZUXOHWKDWZDVQRWLQHIIHFWDWWKHWLPHRIFRQYLFWLRQDQG
LQGHHGLVVWLOOQRWLQHIIHFWXQGHU6XSUHPH&RXUWSUHFHGHQWDW
WKLVWLPH3HWLWLRQHUjVFODLPIDLOVLQDVPXFKDVLWLVQRWEDVHG
XSRQ mFOHDUO\ HVWDEOLVKHG IHGHUDO ODZl IRU SXUSRVHV RI
VDWLVI\LQJRIWKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK
3HQDOW\ $FW m$('3$l   86&  G  :H
WKHUHIRUH$)),50WKHGLVWULFWFRXUWjVGHQLDORI3HWLWLRQHUjV
DSSOLFDWLRQIRUWKHZULWDOEHLWIRUUHDVRQVRWKHUWKDQWKRVHRI
WKHGLVWULFWFRXUW
    6PLWKY+RIEDXHU                                 1R       1R                               6PLWKY+RIEDXHU          

6XSUHPH&RXUWWKHQGHQLHG6PLWKOHDYHWRDSSHDOWKDWUXOLQJ                                      %$&.*5281'
7KHVWDWHLQLWVVXEPLVVLRQVWRERWKWKH0LFKLJDQ&RXUWRI
$SSHDOVDQGWKH0LFKLJDQ6XSUHPH&RXUWHUURQHRXVO\VWDWHG                   3HWLWLRQHUDERG\EXLOGHUZKRZDVWKLUW\RQH\HDUVROGDW
WKDW6PLWKKDGQHYHUUHTXHVWHGDKHDULQJ7KLVPD\KHOSWR               WKHWLPHZDVDUUHVWHGLQODWHsDQXDU\RIIROORZLQJDQ
H[SODLQWKH0LFKLJDQ6XSUHPH&RXUWjVDSSDUHQWXQDZDUHQHVV                 DOOHJDWLRQWKDWKHSHUIRUPHGIHOODWLRRQDVL[WHHQ\HDUROGER\
WKDW 6PLWK KDG LQ IDFW WLPHO\ UHTXHVWHG D KHDULQJ  ,Q LWV   E\IRUFH3HWLWLRQHUZDVFKDUJHGZLWKILUVWGHJUHHFULPLQDO
GHFLVLRQDIILUPLQJ6PLWKjVFRQYLFWLRQDQGVHQWHQFHWKDWFRXUW            VH[XDO FRQGXFW LQ YLRODWLRQ RI 0LFK &RPS /DZV $QQ
VWDWHGm,IDFRQYLFWHGGHIHQGDQWEHOLHYHVWKDWKLVDWWRUQH\jV            EHLQ.HQW&RXQW\&LUFXLW&RXUW.HQW&RXQW\
UHSUHVHQWDWLRQ ZDV EHORZ DQ REMHFWLYH VWDQGDUG RI                   0LFKLJDQDQGZLWKEHLQJDIRXUWKIHORQ\RIIHQGHULQYLRODWLRQ
UHDVRQDEOHQHVVWKHDSSURSULDWHSURFHGXUHLVWRVHHND*LQWKHU            RI 0LFK &RPS /DZV $QQ    6KRUWO\ WKHUHDIWHU
KHDULQJl  3HRSOH Y 6PLWK  1:G   0LFK           3HWLWLRQHU ILUHG KLV FRXUWDSSRLQWHG FRXQVHO DQG UHWDLQHG
 FLWLQJ 3HRSOH Y *LQWKHU  1:G  0LFK            DWWRUQH\ sHIIUH\%DOJRR\HQ2Q$SULO3HWLWLRQHU
7KXVWKH0LFKLJDQ6XSUHPH&RXUWDGYLVHG6PLWKWR                ZDVDUUDLJQHGDVDIRXUWKIHORQ\RIIHQGHURQWKHILUVWGHJUHH
VHHN H[DFWO\ WKH UHOLHI WKDW KH KDG DOUHDG\ GLOLJHQWO\ EXW      FULPLQDOVH[XDOFRQGXFWFKDUJHZKLFKFDUULHGDPD[LPXP
XQVXFFHVVIXOO\VRXJKW                                                   VHQWHQFHRIOLIHLPSULVRQPHQW
  6PLWKjVGLOLJHQFHDWWKHVWDWHOHYHOWRREWDLQDKHDULQJZDV              7KUHH ZHHNV ODWHU RQ 0D\   DQRWKHU DVVLVWDQW
PLUURUHGE\KLVQHDUO\HTXLYDOHQWGLOLJHQFHVHHNLQJWKHVDPH              SURVHFXWLQJ DWWRUQH\ IURP .HQW &RXQW\ REWDLQHG DQ
UHOLHI LQ WKHVH IHGHUDO KDEHDV SURFHHGLQJV  6PLWK ILUVW          LQGLFWPHQWDJDLQVW%DOJRR\HQFKDUJLQJKLPZLWKRQHFRXQW
UHTXHVWHGDKHDULQJLQKLVREMHFWLRQVWRWKHPDJLVWUDWHMXGJHjV           RISRVVHVVLRQZLWKWKHLQWHQWWRGHOLYHUFRFDLQHZKLFKFDUULHG
UHSRUWDQGUHFRPPHQGDWLRQ7KHGLVWULFWFRXUWFRQVLGHUHGWKH             DPDQGDWRU\PLQLPXPVHQWHQFHRIRQH\HDUjVLPSULVRQPHQW
PHULWVRIWKDWUHTXHVWWKHUHE\SURSHUO\SODFLQJLWEHIRUHXVLQ          DQGDPD[LPXPVHQWHQFHRIWZHQW\\HDUVjLPSULVRQPHQW
WKLVDSSHDO7KHGLVWULFWFRXUWWKHQGHQLHG6PLWKjVUHTXHVWIRU
DKHDULQJRQWKHJURXQGWKDWKLVLQHIIHFWLYHDVVLVWDQFHFODLP                2QWKHHYHRI3HWLWLRQHUjVMXU\WULDO%DOJRR\HQPRYHGWR
FRXOG EH HYDOXDWHG RQ WKH EDVLV RI WKH UHFRUG DQG WKXV mD      ZLWKGUDZDV3HWLWLRQHUjVDWWRUQH\FODLPLQJWKDWGLIILFXOWLHVLQ
VHSDUDWHHYLGHQWLDU\KHDULQJlZDVXQQHFHVVDU\                           HVWDEOLVKLQJFRQWDFWZLWK3HWLWLRQHUGHSULYHG%DOJRR\HQRI
                                                                          VXIILFLHQW WLPH WR SUHSDUH KLV GHIHQVH DQG WR FRPSOHWH KLV
  ,QP\YLHZQRVXFKm&DWFKVHULHVRIVWDWHDQGIHGHUDO              ILQDQFLDODUUDQJHPHQWVZLWK3HWLWLRQHU7KHWULDOFRXUWGHQLHG
FRXUWFRPSOLFDWLRQVVKRXOGVWDQGLQWKHZD\RIIHGHUDOFRXUW              %DOJRR\HQjV PRWLRQ DQG UHPLQGHG 3HWLWLRQHU RI WKH
UHYLHZRI6PLWKjVSUHGLFDPHQW,ZRXOGUHPDQGWKLVFDVHWR               SURVHFXWLRQjV HDUOLHU SOHD RIIHU RI DVVDXOW ZLWK LQWHQW WR
WKH GLVWULFW FRXUW WR FRQGXFW DQ HYLGHQWLDU\ KHDULQJ DQG WR      FRPPLW FULPLQDO VH[XDO FRQGXFW IRU ZKLFK WKH PD[LPXP
UHFRQVLGHULWVGHQLDORIWKHZULWLQOLJKWRIWKHUHVXOWVRIWKDW         VHQWHQFHZRXOGKDYHEHHQWHQ\HDUVjLPSULVRQPHQWLQVWHDGRI
KHDULQJ                                                                  OLIHLPSULVRQPHQWZKLFK3HWLWLRQHUIDFHGLIKHSURFHHGHGWR
                                                                          WULDO  3HWLWLRQHU LQGLFDWHG WKDW KH FRQWLQXHG WR UHMHFW WKH
                                                                          SURVHFXWLRQjV SOHD RIIHU DQG WKDW KH GHVLUHG WR JR WR WULDO
                                                                          )ROORZLQJDWKUHHGD\MXU\WULDO3HWLWLRQHUZDVIRXQGJXLOW\
                                                                          RIILUVWGHJUHHFULPLQDOVH[XDOFRQGXFWRQ$SULO
                                                                            $ERXWRQHPRQWKODWHURQ6HSWHPEHU%DOJRR\HQ
                                                                          DSSHDUHGLQ.HQW&RXQW\&LUFXLW&RXUWEXWEHIRUHDMXGJH
                                                                          GLIIHUHQW IURP WKH MXGJH EHIRUH ZKRP 3HWLWLRQHU KDG
     6PLWKY+RIEDXHU                              1R       1R                               6PLWKY+RIEDXHU        

DSSHDUHGRQWKHFKDUJHRILQWHQWWRGLVWULEXWHFRFDLQH7KH             7KH6L[WK&LUFXLWKDVUHFHQWO\FRQVLGHUHGWKHDSSOLFDWLRQRI
SURVHFXWLQJDWWRUQH\DVVLJQHGWR%DOJRR\HQjVFDVHZKRZDV              H LQ OLJKW RI WKH 6XSUHPH &RXUWjV GHFLVLRQ LQ
QRW WKH SURVHFXWLQJ DWWRUQH\ DVVLJQHG WR 3HWLWLRQHUjV FDVH     :LOOLDPV  6HH *UHHU Y 0LWFKHOO  )G  WK &LU
PDGH D SOHD RIIHU WR UHGXFH WKH FKDUJH WR DWWHPSWHG           ,Q*UHHUWKLV&RXUWH[SODLQHGLWVGHFLVLRQWKDWWKH
SRVVHVVLRQ ZLWK WKH LQWHQW WR GHOLYHU FRFDLQH  %DOJRR\HQ      GHIHQGDQWKDGGLOLJHQWO\UHTXHVWHGDQGWKXVZDVHQWLWOHGWR
DFFHSWHGWKHRIIHUSOHDGHGJXLOW\WRWKHOHVVHUFKDUJHDQGZDV       DKHDULQJDVIROORZV
VHQWHQFHGWRILYHPRQWKVjLPSULVRQPHQWSOXVSUREDWLRQ
                                                                         ,QWKHFDVHEHIRUHXVSHWLWLRQHUSXUVXHGKLVLQHIIHFWLYH
  3ULRU WR 3HWLWLRQHUjV VHQWHQFLQJ RQ 2FWREHU   D        DVVLVWDQFH RI DSSHOODWH FRXQVHO FODLP ZLWK SURSHU
FRXUWDSSRLQWHGDWWRUQH\UHSODFHG%DOJRR\HQDV3HWLWLRQHUjV              GLOLJHQFH UDLVLQJ LW ILUVW o DOEHLW SUHPDWXUHO\ o LQ KLV
FRXQVHOSRVVLEO\EHFDXVH%DOJRR\HQjVOLFHQVHWRSUDFWLFHODZ            SHWLWLRQIRUSRVWFRQYLFWLRQUHOLHIDQGWKHQLQKLVPRWLRQ
PD\KDYHEHHQVXVSHQGHGDVRIKLVGDWHRIFRQYLFWLRQXQGHU               IRU GHOD\HG UHFRQVLGHUDWLRQ  %RWK RI WKHVH SOHDGLQJV
0LFKLJDQ&RXUW5XOH<HWDQRWKHUSURVHFXWLQJDWWRUQH\             UHTXHVWHG DQ HYLGHQWLDU\ KHDULQJ ZKLFK ZDV QHYHU
IURP .HQW &RXQW\ UHSUHVHQWHG WKH 6WDWH RI 0LFKLJDQ DW            DIIRUGHGE\WKH2KLRFRXUWV&RQVLVWHQWZLWK:LOOLDPVY
3HWLWLRQHUjVVHQWHQFLQJ3HWLWLRQHUSOHDGHGJXLOW\WREHLQJD           7D\ORU WKHUHIRUH ZH FRQFOXGH WKDW SHWLWLRQHU LV QRW
VHFRQGIHORQ\RIIHQGHULQH[FKDQJHIRUWKHGLVPLVVDORIWKH              SUHFOXGHGIURPDQHYLGHQWLDU\KHDULQJDVKHH[HUFLVHGWKH
LQIRUPDWLRQFKDUJLQJKLPDVEHLQJDIRXUWKIHORQ\RIIHQGHU              QHFHVVDU\GLOLJHQFHLQDWWHPSWLQJWRHVWDEOLVKWKHIDFWXDO
DQG ZDV VHQWHQFHG WR D WHUP RI WZHQW\ILYH WR IRUW\ \HDUVj     UHFRUGLQVWDWHFRXUW$FFRUGLQJO\ZHUHPDQGWKLVPDWWHU
LPSULVRQPHQW                                                           WRWKHGLVWULFWFRXUWZLWKLQVWUXFWLRQVWRDFFRUGSHWLWLRQHU
                                                                         DQ HYLGHQWLDU\ KHDULQJ LQ ZKLFK WR HVWDEOLVK ZKHWKHU
   3HWLWLRQHUDSSHDOHGKLVFRQYLFWLRQWRWKH0LFKLJDQ&RXUWRI           DSSHOODWH FRXQVHO UHQGHUHG FRQVWLWXWLRQDOO\ LQHIIHFWLYH
$SSHDOVUDLVLQJDPRQJRWKHUWKLQJVDFODLPWKDW%DOJRR\HQjV            DVVLVWDQFH ZLWK UHVSHFW WR WKH SHQDOW\ SKDVH RI
SHQGLQJGUXJFKDUJHLQWKHVDPHFRXQW\LQZKLFK3HWLWLRQHU               SHWLWLRQHUjVWULDO
ZDVWULHGDQGFRQYLFWHGFUHDWHGDFRQIOLFWRILQWHUHVWZKLFK
GHQLHG 3HWLWLRQHU KLV ULJKW WR WKH HIIHFWLYH DVVLVWDQFH RI     ,GDWVHHDOVR%DUQHVY(OR)GWK&LU
FRXQVHOSHUVH$VIDUDVWKHUHFRUGLQGLFDWHVWKLVZDVWKH           ZLWKRXW FLWLQJ  H IHGHUDO DSSHDOV FRXUW
ILUVWWLPHWKDW3HWLWLRQHUUDLVHGWKLVLVVXH$WWKHVDPHWLPH        UHPDQGHGFDVHIRUDQHYLGHQWLDU\KHDULQJQRWLQJWKDW
3HWLWLRQHU ILOHG KLV DSSHDO ZLWK WKH 0LFKLJDQ &RXUW RI         GHIHQGDQWKDGVRXJKWD*LQWKHUKHDULQJLQWKH0LFKLJDQ6WDWH
$SSHDOVKHDOVRILOHGDPRWLRQWRUHPDQGIRUDQHYLGHQWLDU\           &RXUWRI$SSHDOVDQGKDGEHHQGHQLHGOHDYHWRDSSHDOWRWKH
KHDULQJ LQ WKH WULDO FRXUW UHTXHVWLQJ IXUWKHU IDFWXDO          0LFKLJDQ6XSUHPH&RXUW
GHYHORSPHQWUHJDUGLQJKLVLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO
FODLPV$OWKRXJK3HWLWLRQHUDOOHJHGVL[FODLPVRILQHIIHFWLYH           6PLWKKDVGHPRQVWUDWHGWKHQHFHVVDU\GLOLJHQFHWRHVFDSH
DVVLVWDQFH E\ %DOJRR\HQ IRU ZKLFK IXUWKHU IDFWXDO                WKH EDU RI  H  6PLWKjV HIIRUWV WR REWDLQ DQ
GHYHORSPHQW ZDV QHFHVVDU\ RQO\ RQH DOOHJDWLRQ LQYROYHG          HYLGHQWLDU\KHDULQJLQWKH0LFKLJDQVWDWHFRXUWVDUHYLUWXDOO\
%DOJRR\HQjV SRWHQWLDO FRQIOLFW RI LQWHUHVW  $QG HYHQ WKDW     LGHQWLFDO WR WKH GHIHQGDQWjV HIIRUWV LQ %DUQHV DQG DUJXDEO\
DOOHJDWLRQZDVPDGHLQUHIHUHQFHWR3HWLWLRQHUjVDOOHJDWLRQWKDW       PRUH GLOLJHQW WKDQ WKH GHIHQGDQWjV LQ *UHHU  ,Q WKLV FDVH
%DOJRR\HQ ZDV LQHIIHFWLYH IRU IDLOLQJ WR FKDOOHQJH WKH          DFNQRZOHGJLQJWKDWKLVLQHIIHFWLYHDVVLVWDQFHFODLPUHOLHGRQ
FRPSRVLWLRQRIWKHMXU\SRRO6SHFLILFDOO\3HWLWLRQHUDOOHJHG        QRQUHFRUGIDFWV6PLWKWLPHO\PRYHGWKH0LFKLJDQ&RXUWRI
DVIROORZV                                                            $SSHDOVWRUHPDQGWKHFDVHWRWKH&LUFXLW&RXUWIRUD*LQWKHU
                                                                       KHDULQJ  7KDW FRXUW GHQLHG WKH PRWLRQ  7KH 0LFKLJDQ
     6PLWKY+RIEDXHU                                   1R    1R                              6PLWKY+RIEDXHU            

VDWLVILHV WZR VWDWXWRU\ H[FHSWLRQV  )RU SXUSRVHV RI                   0U6PLWKZKRLVEODFNDOVRZLVKHVWRFODLPRQ
HDGHIHQGDQWmIDLO>V@WRGHYHORSWKHIDFWXDOEDVLV             DSSHDOWKDWFRXQVHOZDVLQHIIHFWLYHEHFDXVHKHIDLOHGWR
RI D FODLPl LQ WKH VWDWH FRXUWV ZKHQ WKHUH LV D mODFN RI        FKDOOHQJH WKH FRPSRVLWLRQ RI WKH MXU\ EDVHG RQ WKH
GLOLJHQFHRUVRPHJUHDWHUIDXOWDWWULEXWDEOHWRWKHSULVRQHURU           XQGHUUHSUHVHQWDWLRQ>VLF@RIEODFNV7KLV&RXUWFDQWDNH
WKHSULVRQHUjVFRXQVHOl:LOOLDPVY7D\ORU86                 MXGLFLDOQRWLFHWKDWWKHXQGHUUHSUHVHQWDWLRQRIEODFNVRQ
                                                               .HQW&RXQW\&LUFXLW&RXUWMXULHVLVDVXEMHFWRIRQJRLQJ
                                                                            FRQFHUQLQ.HQW&RXQW\&RXQVHOjVIDLOXUHWRUDLVHWKLV
   ,Q :LOOLDPV WKH 6XSUHPH &RXUW GHILQHG D SULVRQHUjV               FODLPPD\KDYHEHHQWKHUHVXOWRIDFRQIOLFWRILQWHUHVW
GLOLJHQFHDVmDUHDVRQDEOHDWWHPSWLQOLJKWRIWKHLQIRUPDWLRQ             FUHDWHGE\DIHORQ\GUXJFKDUJHSHQGLQJDJDLQVWKLPLQ
DYDLODEOHDWWKHWLPHWRLQYHVWLJDWHDQGSXUVXHFODLPVLQVWDWH            WKH .HQW &RXQW\ &LUFXLW &RXUW  .HQW &RXQW\ &LUFXLW
FRXUWLWGRHVQRWGHSHQGXSRQZKHWKHUWKRVHHIIRUWVFRXOG            &RXUW 1R )+  $OWHUQDWLYHO\ 0U 6PLWK
KDYHEHHQVXFFHVVIXOl,GDW7\SLFDOO\WKLVZLOOUHTXLUH           ZLVKHVWRFODLPWKDWKHZDVGHQLHGKLVIHGHUDODQGVWDWH
mWKDWWKHSULVRQHUDWDPLQLPXPVHHNDQHYLGHQWLDU\KHDULQJ               FRQVWLWXWLRQDO ULJKW WR D WULDO E\ MXU\ EHFDXVH WKH MXU\
LQVWDWHFRXUWLQWKHPDQQHUSUHVFULEHGE\VWDWHODZl,GDW              PHPEHUV GLG QRW UHSUHVHQW D IDLU FURVVVHFWLRQ RI WKH
7KXVZKHQDGHIHQGDQWGLOLJHQWO\VHHNVDQHYLGHQWLDU\                FRPPXQLW\6HH'XUHQY0LVVLVVLSSL86
KHDULQJLQWKHVWDWHFRXUWVLQWKHPDQQHUSUHVFULEHGEXWWKH               6&W/(GG
VWDWH FRXUWV GHQ\ KLP WKDW RSSRUWXQLW\ KH FDQ DYRLG
HjVEDUULHUVWRREWDLQLQJDKHDULQJLQIHGHUDOFRXUW          s$DW3HWLWLRQHUjV0RWLRQWR5HPDQG
,G
                                                                            7KH 0LFKLJDQ &RXUW RI $SSHDOV DIILUPHG 3HWLWLRQHUjV
                                                                          FRQYLFWLRQ DQG VHQWHQFH LQ DQ XQSXEOLVKHG SHU FXULDP
                                                                          RSLQLRQ RSLQLQJ WKDW m>E@HFDXVH WKH MXGJH DQG SURVHFXWRU
                                                                          LQYROYHGLQFRXQVHOjV>%DOJRR\HQjV@FDVHZHUHQRWWKHVDPH
     
      6HFWLRQ H SURYLGHV LQ IXOO                                DVGHIHQGDQWjVQRDFWXDOFRQIOLFWRILQWHUHVWKDVEHHQVKRZQl
                                                                          3HRSOHY6PLWK1RVOLSRSDW0LFK&W$SS
         ,I WKH DSSOLFDQW KDV IDLOHG WR GHYHORS WKH IDFWXDO EDVLV RI D    sXO\   XQSXEOLVKHG SHU FXULDP FLWLQJ 3HRSOH Y
     FODLP LQ 6WDWH FRXUW SURFHHGLQJV WKH FRXUW VKDOO QRW KROG DQ
     HYLGHQWLDU\ KHDULQJ RQ WKH FODLP XQOHVV WKH DSSOLFDQW VKRZV WKDW
                                                                          3LFNHQV1:G0LFK$SSDUHQWO\LQOLJKW
     o
                                                                          RIWKHFRXUWjVGHFLVLRQ3HWLWLRQHUjVPRWLRQWRUHPDQGIRUDQ
                                                                          HYLGHQWLDU\KHDULQJZDVGHQLHG
         $ WKH FODLP UHOLHV RQ o
              L D QHZ UXOH RI FRQVWLWXWLRQDO ODZ PDGH UHWURDFWLYH WR     2QsXO\3HWLWLRQHUILOHGDQDSSOLFDWLRQIRUOHDYH
         FDVHV RQ FROODWHUDO UHYLHZ E\ WKH 6XSUHPH &RXUW WKDW ZDV        WRDSSHDOWRWKH0LFKLJDQ6XSUHPH&RXUWDJDLQUDLVLQJWKH
         SUHYLRXVO\ XQDYDLODEOH RU
              LL D IDFWXDO SUHGLFDWH WKDW FRXOG QRW KDYH EHHQ
                                                                          LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOLVVXH/HDYHZDVJUDQWHGRQ
         SUHYLRXVO\ GLVFRYHUHG WKURXJK WKH H[HUFLVH RI GXH GLOLJHQFH
                                                                          WKDWLVVXHDORQJZLWKDQHYLGHQWLDU\FODLPEXWWKHVXSUHPH
         DQG                                                              FRXUWDIILUPHG3HWLWLRQHUjVFRQYLFWLRQ6HH3HRSOHY6PLWK
                                                                          1:G0LFK7KHFRXUWRSLQHGLQUHOHYDQW
          % WKH IDFWV XQGHUO\LQJ WKH FODLP ZRXOG EH VXIILFLHQW WR       SDUWWKDW3HWLWLRQHUmFLWHGQRHYLGHQFHWRVXJJHVWWKDWGHIHQVH
     HVWDEOLVK E\ FOHDU DQG FRQYLQFLQJ HYLGHQFH WKDW EXW IRU
     FRQVWLWXWLRQDO HUURU QR UHDVRQDEOH IDFWILQGHU ZRXOG KDYH IRXQG
                                                                          FRXQVHO DFWLYHO\ OHVVHQHG KLV GHIHQVH DV D UHVXOW RI KLV
     WKH DSSOLFDQW JXLOW\ RI WKH XQGHUO\LQJ RIIHQVH
                                                                          SHQGLQJIHORQ\FKDUJHQRUGRZHILQGHYLGHQFHRIDQDFWXDO
                                                                          FRQIOLFWRILQWHUHVWRQWKHUHFRUG7RWKHFRQWUDU\GHIHQVH
 86&  H HPSKDVLV DGGHG
      6PLWKY+RIEDXHU                               1R     1R                              6PLWKY+RIEDXHU        

FRXQVHO YLJRURXVO\ SXUVXHG KLV REMHFWLRQV DQG SUHVHQWHG D       KRVWDJHWRWKH2IILFHRIWKH3URVHFXWRU$VDUHVXOWKHFRXOG
VWURQJFDVHl,GDW                                             KDYHIHDUHGQRWLUUDWLRQDOO\WKHFRQVHTXHQFHVWRKLPVHOIDQG
                                                                       IHOWmFRPSHOOHGWRUHIUDLQlIURPFKDOOHQJLQJDQDOOHJHGO\ORQJ
   3HWLWLRQHUILOHGWKHLQVWDQWDSSOLFDWLRQIRUDZULWRIKDEHDV       WROHUDWHGEXWLQDSSURSULDWHFRXUWKRXVHSUDFWLFHZLWKUHVSHFW
FRUSXV LQ WKH GLVWULFW FRXUW UDLVLQJ WKH VLQJOH LVVXH RI      WRWKHVHOHFWLRQRImMXURUVl6HH+ROORZD\Y$UNDQVDV
LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO  6SHFLILFDOO\ 3HWLWLRQHU     86 DW   ,Q P\ RSLQLRQ 6PLWK VKRXOG KDYH DQ
DUJXHGWKDWmEHFDXVHKLVWULDOFRXQVHOZDVEHLQJSURVHFXWHG            HYLGHQWLDU\ KHDULQJ LQ RUGHU WR HQDEOH WKH GLVWULFW MXGJH WR
RQDGUXJFKDUJHLQWKHVDPHFRXQW\LQZKLFK3HWLWLRQHUZDV            GHWHUPLQH ZKHWKHU LQ WKH XQXVXDO FLUFXPVWDQFHV KHUH
EHLQJ WULHG D FRQIOLFW RI LQWHUHVW H[LVWHG ZKLFK FUHDWHG D   %DOJRR\HQ UHWDLQHG WKDW mLQGLVSHQVDEOH HOHPHQW RI   
VWUXFWXUDO GHIHFW WKHUHE\ GHQ\LQJ 3HWLWLRQHU KLV 6L[WK          HIIHFWLYHSHUIRUPDQFH>@WKHDELOLW\WRDFWLQGHSHQGHQWO\
$PHQGPHQWULJKWWRWKHHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOl         RIWKH*RYHUQPHQWDQGWRRSSRVHLWlRQDVXEMHFWDERXWZKLFK
s$DW3HWLWLRQIRU:ULWRI+DEHDV&RUSXV7KHGLVWULFW       WKH2IILFHRIWKH3URVHFXWRUDQGWKH.HQW&RXQW\&RXUWRU
FRXUW UHIHUUHG 3HWLWLRQHUjV FDVH WR D PDJLVWUDWH ZKR            DQ\ FRXUW ZRXOG EH XQGHUVWDQGDEO\ KLJKO\ VHQVLWLYH  6HH
UHFRPPHQGHG WKDW WKH DSSOLFDWLRQ EH GHQLHG  ,Q D              )HUULY$FNHUPDQ86DW
PHPRUDQGXP RSLQLRQ WKH GLVWULFW FRXUW DGRSWHG WKH
PDJLVWUDWHjV UHFRPPHQGDWLRQ RSLQLQJ LQ UHOHYDQW SDUW DV            7KH KHLJKWHQHG VFUXWLQ\ ZKLFK , EHOLHYH %DOJRR\HQjV
IROORZV                                                               VXVSHFW FRQIOLFW DGPLWWHG ODFN RI SUHSDUDWLRQ DQG DOOHJHG
                                                                       FKHPLFDO LPSHGLPHQWV UHTXLUH VKRXOG DOVR LQFOXGH D FORVH
    7KH VWDWH FRXUWjV FRQFOXVLRQ WKDW GHIHQGDQW mFLWHG QR       GLVWULFWFRXUWH[DPLQDWLRQRI%DOJRR\HQjVUROHZLWKUHVSHFW
    HYLGHQFH WR VXJJHVW WKDW GHIHQVH FRXQVHO DFWLYHO\            WRsXGJH/LHEHUjVRSHQFRXUWDGPRQLWLRQWKDW6PLWKFDUHIXOO\
    OHVVHQHG KLV GHIHQVH DV D UHVXOW RI KLV SHQGLQJ IHORQ\    UHFRQVLGHU DQG FRXQVHO ZLWK %DOJRR\HQ DERXW WKH
    FKDUJHlLVDPSO\VXSSRUWHGE\WKHUHFRUG&RXQVHO           SURVHFXWLRQjVHYHRIWULDORIIHURID\HDUVHQWHQFHLQVWHDG
    FRQGXFWHG D YLJRURXV GHIHQVH ORGJLQJ DSSURSULDWH             RI ULVNLQJ D PXFK ORQJHU VHQWHQFH LQFOXGLQJ OLIH
    REMHFWLRQV WR HYLGHQFH HQJDJLQJ LQ H[WHQVLYH DQG            LPSULVRQPHQW+LQGVLJKWPDNHVFOHDUZLWKRXWWKHDLGRIDQ\
    FRPSHWHQWFURVVH[DPLQDWLRQDQGSUHVHQWLQJWHVWLPRQ\              SUHVXPSWLRQWKHGLUHFRQVHTXHQFHVRI6PLWKjVGHFLVLRQ
    RI GHIHQGDQW DQG WZR RWKHU ZLWQHVVHV  7KH 0LFKLJDQ        WR\HDUVLQVWHDGRI$QHYLGHQWLDU\KHDULQJVKRXOGDOVR
    6XSUHPH &RXUW UHDVRQDEO\ FRQFOXGHG WKDW SHWLWLRQHU            H[SORUHZKHWKHU%DOJRR\HQSUHVVHGIRUWLPHDVKHZDVGLG
    IDLOHGWRVKRZDQ\DGYHUVHHIIHFWRQKLVUHSUHVHQWDWLRQE\         LQIDFWDGYLVH6PLWKmLQGHWDLOlRURWKHUZLVHDERXWWKHSOHD
    FRXQVHOjVFRQIOLFWRILQWHUHVW                                    RIIHUDQGLIKHGLGWKHH[WHQWDQGVXEVWDQFHRIWKDWDGYLFH
      $V D UHVXOW WKH GHFLVLRQ RI WKH 0LFKLJDQ 6XSUHPH        & $QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FW
    &RXUW WKDW SHWLWLRQHU ZDV QRW GHQLHG KLV 6L[WK
    $PHQGPHQWULJKWWRHIIHFWLYHDVVLVWDQFHRIFRXQVHOZDV               ,QUHDFKLQJWKLVFRQFOXVLRQ,DPPLQGIXORIWKHIDFWWKDWWKH
    QRWFRQWUDU\WRRUDQXQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\        $QWLWHUURULVP DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW $('3$
    HVWDEOLVKHG IHGHUDO ODZ DV GHWHUPLQHG E\ WKH 8QLWHG         OLPLWV IHGHUDO KDEHDV UHYLHZ RI D VWDWH FRXUW FULPLQDO
    6WDWHV6XSUHPH&RXUW                                              FRQYLFWLRQZKHUHDQHYLGHQWLDU\KHDULQJLVVRXJKW6HH
                                                                       86&H8QGHUWKDWVHFWLRQDGHIHQGDQWZKR
s$ DW  0HPRUDQGXP 2SLQLRQ $GRSWLQJ 5HSRUW DQG             mIDLOHGWRGHYHORSWKHIDFWXDOEDVLVRIDFODLPLQ6WDWHFRXUW
5HFRPPHQGDWLRQDOWHUDWLRQLQRULJLQDO7KHGLVWULFWFRXUW          SURFHHGLQJVlFDQQRWREWDLQDQHYLGHQWLDU\KHDULQJXQOHVVKH
WKHUHDIWHUHQWHUHGLWVFRUUHVSRQGLQJRUGHUGHQ\LQJ3HWLWLRQHUjV
    6PLWKY+RIEDXHU                                1R        1R                             6PLWKY+RIEDXHU         

([SHULHQFHWHDFKHVWKDWLQFDVHVIHDWXULQJDOOHJDWLRQVRIQRQ            DSSOLFDWLRQ IRU WKH ZULW DQG LW LV IURP WKLV RUGHU WKDW
FRQVHQVXDO RUDO VH[ EHWZHHQ SHUVRQV RI WKH VDPH VH[ EXW         3HWLWLRQHUQRZDSSHDOV
GLIIHUHQW UDFHV SUHFRQFHSWLRQV FDQ VWURQJO\ LQIOXHQFH WKH
FUHGLELOLW\MXGJPHQWVRISURIHVVHGO\LPSDUWLDOWULHUVRIIDFW                                     ',6&866,21
,Q VXFK FDVHV MXU\ VHOHFWLRQ LV D FULWLFDO LI QRW WKH PRVW
FULWLFDO UHVSRQVLELOLW\ RI DQ HIIHFWLYH FULPLQDO GHIHQVH             :KHQ UHYLHZLQJ D GLVWULFW FRXUWjV GHFLVLRQ UHJDUGLQJ D
FRXQVHO7KHUHFRUGRI%DOJRR\HQjVYRLUGLUHH[DPLQDWLRQRI              SHWLWLRQIRUDZULWRIKDEHDVFRUSXVEURXJKWXQGHU86&
WKH SDUWLFXODU YHQLUH WKDW WKH .HQW &RXQW\ &RXUW V\VWHP           ZHUHYLHZWKHGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGH
GHOLYHUHGWRWKHFRXUWURRPDERXWLWVDWWLWXGHVDVWRUDFHDQG             QRYRDQGLWVIDFWXDOILQGLQJVIRUFOHDUHUURU6HH+DUULVY
VH[PD\KDYHEHHQDSSURSULDWHDVIDUDVLWZHQW%XW6PLWKjV             6WRYDOO)GWK&LU
DSSOLFDWLRQIRUDUHPDQGH[SUHVVHGFRQFHUQWKDW%DOJRR\HQ
PDGH QR LVVXH RI DQ DOOHJHGO\ GLVFULPLQDWRU\ SURFHVV E\           $ $('3$6WDQGDUGV
ZKLFK WKH .HQW &RXQW\ FRXUWKRXVH V\VWHP GUHZ DOO RI LWV
mMXULHVls$DWGHVFULEHGVXSUDSLQFOXGLQJEXW               $('3$ SURYLGHV IHGHUDO KDEHDV UHOLHI IRU D VWDWH FRXUW
QRW OLPLWHG WR WKH YHQLUH IURP ZKLFK %DOJRR\HQ DQG WKH           GHIHQGDQWLIWKHVWDWHFRXUWjVGHFLVLRQmUHVXOWHGLQDGHFLVLRQ
SURVHFXWRU SLFNHG WKH SHWLW MXU\ ZKLFK UHWXUQHG WKH YHUGLFW       WKDWZDVFRQWUDU\WRRULQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQ
WKDW6PLWKZDVJXLOW\                                                    RI FOHDUO\ HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH
                                                                          6XSUHPH&RXUW>@l86&GRUZDVEDVHGRQ
   %DOJRR\HQ PD\ KDYH PDGH QR LVVXH RI WKH .HQW &RXQW\           mDQ XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH
SUDFWLFH IRU VHOHFWLQJ MXURUV EHFDXVH LW ZDV DQG LV TXLWH      HYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJl86&
FRUUHFWDQGKHNQHZLW2UXQSUHSDUHGDVKHZDVRQWKHHYH               G  $ VWDWH FRXUW DGMXGLFDWLRQ LV mFRQWUDU\ WRl
RIWULDODQGSRVVLEO\XQGHUWKHLQIOXHQFHKHPD\KDYHQHYHU             6XSUHPH &RXUW SUHFHGHQW XQGHU G mLI WKH VWDWH
WKRXJKW RI UDLVLQJ WKH LVVXH RU WKLQNLQJ RI LW ZDV WRR       FRXUWDUULYHVDWDFRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\>WKH
SUHRFFXSLHGZLWKODVWPLQXWHWULDOSUHSDUDWLRQWRKDYHWLPHWR            6XSUHPH@&RXUWRQDTXHVWLRQRIODZlRUmLIWKHVWDWHFRXUW
GHYHORSDQGUDLVHLW,QHLWKHURIWKRVHHYHQWV6PLWKjVSUHVHQW         FRQIURQWVIDFWVWKDWDUHPDWHULDOO\LQGLVWLQJXLVKDEOHIURPD
FRQFHUQVDERXW%DOJRR\HQjVFRQIOLFWRILQWHUHVWPD\EHEHVLGH             UHOHYDQW6XSUHPH&RXUWSUHFHGHQWlDQGDUULYHVDWDGLIIHUHQW
WKHPDUN%XWKHLJKWHQHGVFUXWLQ\RIWKHUHFRUGVKRXOGKDYH              UHVXOW:LOOLDPVY7D\ORU6&W$
DOHUWHGWKHPDJLVWUDWHRUWKHGLVWULFWMXGJHWRWKHIDFWWKDWHYHQ        VWDWHFRXUWDGMXGLFDWLRQLQYROYHVmDQXQUHDVRQDEOHDSSOLFDWLRQ
LI%DOJRR\HQZDVFRQVLGHULQJKRZWRSURWHFWKLVPXVFXODU                 RIl6XSUHPH&RXUWSUHFHGHQWXQGHUGmLIWKHVWDWH
JD\ $IULFDQ$PHULFDQ FOLHQW IURP MXU\ ELDV KH ZDV YHU\          FRXUW LGHQWLILHV WKH FRUUHFW JRYHUQLQJ OHJDO UXOH IURP >WKH
SRVVLEO\HTXDOO\LIQRWPRUHFRQFHUQHGDERXWKLVRZQIDWH               6XSUHPH@ &RXUWjV FDVHV EXW XQUHDVRQDEO\ DSSOLHV LW WR WKH
DQGWKHSRVVLELOLW\RI D IDYRUDEOHSOHDEDUJDLQIRUKLPVHOI            IDFWVRIWKHSDUWLFXODUFDVHlRULIWKHFRXUWXQUHDVRQDEO\
VXFK DV WKH PRQWK VHQWHQFH WKDW KH QHJRWLDWHG DIWHU KLV        UHIXVHV WR H[WHQG RU XQUHDVRQDEO\ H[WHQGV H[LVWLQJ OHJDO
FOLHQW UHMHFWHG D IDYRUDEOH SOHD RIIHU DQG VWRRG FRQYLFWHG       SULQFLSOHVIURPWKH&RXUWjVSUHFHGHQWVWRDQHZFRQWH[W,G
:KHQKHZDVDGYLVLQJ6PLWKMXVWEHIRUHWULDOHYHQWKRXJKKH              DW
ZDVEHLQJSURVHFXWHGE\DQDVVLVWDQWGLIIHUHQWIURPWKHRQH
ZKR RSSRVHG KLP LQ 6PLWKjV FDVH KH FRXOG QRW NQRZ                 m:KHWKHU>3HWLWLRQHU@ZDVGHSULYHGRIKLVULJKWWRHIIHFWLYH
ZKHWKHURUZKHQWKRVHWZRH[FKDQJHGLQIRUPDWLRQDERXWWKH               DVVLVWDQFHRIFRXQVHOLVDPL[HGTXHVWLRQRIODZDQGIDFWWKDW
WZRFDVHVDWKDQGRUKDGDVXSHULRUIDPLOLDUZLWKERWK,QWKH           ZHUHYLHZGHQRYRl+XQWY0LWFKHOO)G
FLUFXPVWDQFHV%DOJRR\HQFRXOGKDYHIHOWWKDWKLVOLEHUW\ZDV             FLWLQJ2OGHQY8QLWHG6WDWHV)GWK
                                                                          &LU   7KLV &RXUW DSSOLHV WKH mXQUHDVRQDEOH
     6PLWKY+RIEDXHU                                1R       1R                             6PLWKY+RIEDXHU        

DSSOLFDWLRQlSURQJRIGWRPL[HGTXHVWLRQVRIODZ             WR SRVVLEOH SUHWULDO SOHD QHJRWLDWLRQV DQG LQ WKH VHQWHQFLQJ
DQGIDFW,GFLWLQJ+DUSVWHUY2KLR)GWK          SURFHVVl,G%XUJHU&sVHHDOVR0LFNHQV6&WDW
&LU7KH6XSUHPH&RXUWKDVFDXWLRQHGWKDWDIHGHUDO              .HQQHG\ s FRQFXUULQJ LQ D UHODWHG FRQWH[W
KDEHDVFRXUWPD\QRWRYHUWXUQDVWDWHFRXUWjVGHFLVLRQVLPSO\            GLVSDUDJLQJDmZRRGHQUXOHlDQGHPSKDVL]LQJWKHLPSRUWDQFH
EHFDXVHLWFRQFOXGHVWKDWDVWDWHFRXUWPLVDSSOLHG6XSUHPH               RIDQHYLGHQWLDU\KHDULQJDQGGLVWULFWFRXUWILQGLQJVRQWKH
&RXUW SUHFHGHQW UDWKHU WKH VWDWH FRXUWjV DSSOLFDWLRQ RI         HIIHFWRIWKHFRQIOLFWRQWKHUHSUHVHQWDWLRQ
6XSUHPH&RXUWSUHFHGHQWPXVWDOVREHXQUHDVRQDEOH6HHLG
FLWLQJ:LOOLDPV86DW                                          7KH IRUHJRLQJ FRQVLGHUHG , EHOLHYH WKDW HYHQ WKRXJK
                                                                         %DOJRR\HQjV FRQIOLFW LV QRW RQ mDOO IRXUVl ZLWK WKH MRLQW
% 6XSUHPH&RXUW3UHFHGHQWDVWR,QHIIHFWLYH$VVLVWDQFH                  UHSUHVHQWDWLRQDWLVVXHLQ&X\OHULWLVHYHQPRUHmVXVSHFWl
   RI&RXQVHO&ODLPV%DVHG8SRQ&RXQVHOjV&RQIOLFWRI                    ,WKDGDVWURQJHUWHQGHQF\WRLQIOXHQFHLIQRWFRPSHOKLPWR
   ,QWHUHVW                                                              UHIUDLQIURPDFWLRQVSRWHQWLDOO\DGYDQWDJHRXVWRKLVFOLHQWWKDW
                                                                         DQHIIHFWLYHFRXQVHOZRXOGWDNH7KDWWHQGHQF\VKRXOGKDYH
    m,WKDVORQJEHHQUHFRJQL]HGWKDWWKHULJKWWRFRXQVHO>XQGHU        DURXVHGWKH'LVWULFW&RXUWjVVHULRXVVXVSLFLRQVDQGSURPSWHG
WKH6L[WK$PHQGPHQW@LVWKHULJKWWRWKHHIIHFWLYHDVVLVWDQFH            LW WR H[DPLQH WKH HQWLUH VWDWH FRXUW UHFRUG ZLWK KHLJKWHQHG
RIFRXQVHOl0F0DQQY5LFKDUGVRQ86Q               VFUXWLQ\
  ,Q WKLV UHJDUG WKH &RXUW RSLQHG LQ 6WULFNODQG Y
:DVKLQJWRQ  86    WKDW LQ JHQHUDO LQ        % (YLGHQWLDU\+HDULQJ
RUGHU IRU D FULPLQDO GHIHQGDQW WR SUHYDLO RQ D FODLP IRU
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOXQGHUWKH6L[WK$PHQGPHQW               $FORVHH[DPLQDWLRQRIWKHVWDWHFRXUWUHFRUGE\WKHGLVWULFW
WKH GHIHQGDQW PXVW GHPRQVWUDWH mD UHDVRQDEOH SUREDELOLW\           FRXUW ZRXOG KDYH OHG WR WKH GLVFRYHU\ WKDW WKHUH ZHUH WZR
WKDWEXWIRUFRXQVHOjVXQSURIHVVLRQDOHUURUVWKHUHVXOWRIWKH         FULWLFDOSKDVHVRI%DOJRR\HQjVUHSUHVHQWDWLRQZKLFKVKRXOG
SURFHHGLQJV ZRXOG KDYH EHHQ GLIIHUHQWl  $FFRUGLQJ WR             KDYH EHHQ H[SORUHG ZLWK FDUH LQ DQ HYLGHQWLDU\ KHDULQJ
6WULFNODQG m>D@ UHDVRQDEOH SUREDELOLW\ LV D SUREDELOLW\           KLVIDLOXUHWRFKDOOHQJHWKHFRPSRVLWLRQRIWKH6PLWKMXU\
VXIILFLHQW WR XQGHUPLQH FRQILGHQFH LQ WKH RXWFRPHl RI WKH        LQOLJKWRIKLVDOOHJDWLRQVRIDMXGLFLDOO\QRWLFHDEOHRQJRLQJ
WULDO,GVHHDOVR%HOOY&RQH86BBB6&W        FRQFHUQDERXWWKHXQGHUUHSUHVHQWDWLRQRI$IULFDQ$PHULFDQV
   m:LWKRXW SURRI RI ERWK GHILFLHQW               RQ.HQW&RXQW\&LUFXLW&RXUWYHQLUHVIURPRQHRIZKLFKWKH
SHUIRUPDQFHDQGSUHMXGLFHWRWKHGHIHQVH>XQGHU6WULFNODQG@             6PLWKMXU\ZDVGUDZQDQGKLVUROHLQ6PLWKjVIDWHIXOHYH
   LW FRXOG QRW EH VDLG WKDW WKH VHQWHQFH RU FRQYLFWLRQ   RIWULDOUHMHFWLRQRIWKHRIIHURIWKHSURVHFXWLRQRIDWHQ\HDU
µUHVXOWHG IURP D EUHDNGRZQ LQ WKH DGYHUVDU\ SURFHVV WKDW         VHQWHQFHLQH[FKDQJHIRUDSOHDRIJXLOW\LQOLJKWRIWKHWULDO
UHQGHUHG WKH UHVXOW RI WKH SURFHHGLQJ XQUHOLDEOHj DQG WKH       MXGJHjV SRLQWHG DGPRQLWLRQ WR 6PLWK ZLWK UHVSHFW WR WKH
VHQWHQFH RU FRQYLFWLRQ VKRXOG VWDQGl LQWHUQDO TXRWDWLRQ         SURVSHFWRIDOLIHVHQWHQFHWKDWKHVHHN%DOJRR\HQjVDGYLFH
PDUNVDQGFLWDWLRQRPLWWHG                                             DQG KLV DGPRQLWLRQ WR %DOJRR\HQ WR UHQGHU LW mLQ JUHDW
                                                                         GHWDLOl6HHVXSUDS
  +RZHYHU6WULFNODQGDOVRUHFRJQL]HGWKDWm>L@QFHUWDLQ6L[WK
$PHQGPHQW FRQWH[WV SUHMXGLFH LV SUHVXPHGl  6HH                     7KHMXU\WU\LQJ6PLWKZDVFDOOHGRQWRUHVROYHDVZHDULQJ
6WULFNODQG86DW&LWLQJ8QLWHG6WDWHVY&URQLF            PDWFKEHWZHHQWKHGLUHFWWHVWLPRQ\RID\HDUROGDWWKH
 86   	 Q  WKH 6WULFNODQG &RXUW           WLPH RI WULDO ZKLWH PDOH FRUURERUDWHG E\ WKH KHDUVD\
UHFRJQL]HG WKDW m>D@FWXDO RU FRQVWUXFWLYH GHQLDO RI WKH           WHVWLPRQ\ RI KLV PRWKHU DQG WKH GLUHFW FDWHJRULFDO EXW
DVVLVWDQFHRIFRXQVHODOWRJHWKHULVOHJDOO\SUHVXPHGWRUHVXOW           XQFRUURERUDWHGGHQLDOE\6PLWKDWKHQ\HDUROG$IULFDQ
                                                                         $PHULFDQ ZKR WRRN WKH VWDQG LQ KLV RZQ GHIHQVH
    6PLWKY+RIEDXHU                                1R       1R                              6PLWKY+RIEDXHU         

6WDWHVY&URQLF86QFLWLQJ7ROOHWW          LQSUHMXGLFH6RDUHYDULRXVNLQGVRIVWDWHLQWHUIHUHQFHZLWK
Y+HQGHUVRQ86)LQDOO\KLJKO\              FRXQVHOjV DVVLVWDQFHl  6WULFNODQG  86 DW   0RUH
UHOHYDQWWRWKHFLUFXPVWDQFHVKHUH6XSUHPH&RXUWGHFLVLRQV              VSHFLILFDOO\ LQ &URQLF WKH &RXUW QRWHG WKDW WKHUH DUH
WHDFK WKDW mDQ LQGLVSHQVDEOH HOHPHQW RI WKH HIIHFWLYH             mFLUFXPVWDQFHVWKDWDUHVROLNHO\WRSUHMXGLFHWKHDFFXVHGWKDW
SHUIRUPDQFH RI >GHIHQVH FRXQVHOjV@ UHVSRQVLELOLWLHV LV WKH         WKH FRVW RI OLWLJDWLQJ WKHLU HIIHFW LQ D SDUWLFXODU FDVH LV
DELOLW\WRDFWLQGHSHQGHQWO\RIWKH*RYHUQPHQWDQGWRRSSRVH             XQMXVWLILHG>@lDQGIRXQGVXFKFLUFXPVWDQFHVWRLQFOXGHWKH
LWLQDGYHUVDU\OLWLJDWLRQl)HUULY$FNHUPDQ86           mFRPSOHWHGHQLDORIFRXQVHOlRUWKHGHQLDORIFRXQVHOmDWD
                                                             FULWLFDOVWDJHlRIWKHGHIHQGDQWjVWULDOWKHIDLOXUHWRmVXEMHFW
                                                                         WKHSURVHFXWLRQjVFDVHWRPHDQLQJIXODGYHUVDULDOWHVWLQJ>@l
$ (IIHFWLYH $VVLVWDQFH RI &RXQVHO DQG &RQIOLFWV RI                DQGWKRVHFLUFXPVWDQFHVLQZKLFKFRXQVHOLVFDOOHGXSRQWR
   ,QWHUHVW                                                              UHQGHUDVVLVWDQFHZKHUHFRPSHWHQWFRXQVHOYHU\OLNHO\FRXOG
                                                                         QRW VXFK DV LQ 3RZHOO Y $ODEDPD  86  
   $ 6XSUHPH &RXUW PDMRULW\ KDV HVWDEOLVKHG D FOHDU               &URQLF86DW
IUDPHZRUNIRUHYDOXDWLQJWKHHIIHFWLYHQHVVRIFRXQVHOZKHUH
RQHODZ\HUUHSUHVHQWVPRUHWKDQRQHGHIHQGDQWLQDFULPLQDO                 6WULFNODQG IXUWKHU UHFRJQL]HG WKDW m>R@QH W\SH RI DFWXDO
FDVH6HH+ROORZD\Y$UNDQVDV86DW&X\OHU              LQHIIHFWLYHQHVVFODLPZDUUDQWVDVLPLODUWKRXJKPRUHOLPLWHG
Y 6XOOLYDQ  86 DW  VHH DOVR 6WULFNODQG Y            SUHVXPSWLRQ RI SUHMXGLFHl WKDQ WKDW IRXQG LQ WKH W\SH RI
:DVKLQJWRQ86DW0LFNHQVY7D\ORU6&WDW            FLUFXPVWDQFHVGHVFULEHGLQ&URQLF6HH6WULFNODQG86
VHHDOVR0DMRULW\2SDWIRUWKRURXJKVXPPDU\              DW6SHFLILFDOO\WKHW\SHRILQHIIHFWLYHQHVVFODLPUHIHUUHG
RIIDFWVDQGSUHFLVHKROGLQJVRIWKHVHFDVHV0\FROOHDJXHV             WRE\6WULFNODQGLQWKLVUHJDUGZDVWKDWRI&X\OHUY6XOOLYDQ
KHUHDSSO\WKDW6XSUHPH&RXUWSUHFHGHQWTXLWHOLWHUDOO\WRWKH           ZKHUHLQ WKH &RXUW KHOG WKDW SUHMXGLFH LV SUHVXPHG IRU
XQLTXH IDFWV EHIRUH XV FRQFOXGLQJ WKDW WKH RQO\ FOHDU DQG      SXUSRVHVRIDQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPRQO\LI
UHOHYDQW 6XSUHPH &RXUW ODZ HVWDEOLVKHV WKDW FRQIOLFWV RI          WKHGHIHQGDQWGHPRQVWUDWHVWKDWmµDQDFWXDOFRQIOLFWRILQWHUHVW
LQWHUHVWDULVLQJRXWRIMRLQWUHSUHVHQWDWLRQWKHSUHFLVHFRQIOLFW       DGYHUVHO\DIIHFWHGKLVODZ\HUjVSHUIRUPDQFHjl6WULFNODQG
DWLVVXHLQ&X\OHUWULJJHU&X\OHUW\SHDQDO\VLVDQGUHOLHI             86DWTXRWLQJ&X\OHUY6XOOLYDQ86
                                                                         
   2EYLRXVO\ &X\OHU LV FOHDUO\ HVWDEOLVKHG DQG UHOHYDQW
6XSUHPH&RXUWODZ%XWLWLVQRWWKHWRWDOLW\RILW7KHUHDOLW\          7KH 6XOOLYDQ VWDQGDUG JUHZ RXW RI WKH &RXUWjV SULRU
LV WKDW FRQIOLFWV FRPH LQ DOO VKDSHV DQG VL]HV RQO\ RQH RI   UHFRJQLWLRQWKDWZKHQmDWULDOFRXUWLPSURSHUO\UHTXLUHVMRLQW
ZKLFKLVMRLQWUHSUHVHQWDWLRQ,QP\YLHZDQGFULWLFDOWRP\           UHSUHVHQWDWLRQRYHUWLPHO\REMHFWLRQ>@lLQHIIHFWLYHDVVLVWDQFH
DQDO\VLVRIWKHSUHVHQWFDVHWKH6XSUHPH&RXUWjVGHFLVLRQLQ            RIFRXQVHOLVSUHVXPHG+ROORZD\Y$UNDQVDV86
+ROORZD\ FOHDUO\ HVWDEOLVKHG WKH XOWLPDWH IXQFWLRQDOO\               FLWLQJ *ODVVHU Y 8QLWHG 6WDWHV  86 
JRYHUQLQJOHJDOUDWLRQDOHIRUIHGHUDOKDEHDVUHYLHZIRUDQ\             7KH&RXUWLQ+ROORZD\KHOGWKDWZKHUHFRXQVHOLV
FRQYLFWHGGHIHQGDQWUHSUHVHQWHGLQVWDWHFRXUWE\FRQIOLFWHG             UHSUHVHQWLQJPXOWLSOHGHIHQGDQWVDWWULDODQGWLPHO\REMHFWVLQ
FRXQVHO QRW PHUHO\ MRLQW UHSUHVHQWDWLRQ  +ROORZD\ Y            RSHQFRXUWWRWKHMRLQWUHSUHVHQWDWLRQEXWLVQRQHWKHOHVVIRUFHG
$UNDQVDV86DW$VWKH&RXUWH[SODLQHGWKHUH             WR UHSUHVHQW WKH FRGHIHQGDQWV DQ DXWRPDWLF UHYHUVDO LV
m>M@RLQW UHSUHVHQWDWLRQ RI FRQIOLFWLQJ LQWHUHVWV LV VXVSHFW        UHTXLUHGXQOHVVWKHWULDOFRXUWKDVGHWHUPLQHGWKDWWKHUHLVQR
EHFDXVH RI ZKDW LW WHQGV WR SUHYHQW WKH DWWRUQH\ IURP           FRQIOLFW  ,G  7KH &RXUW UHDVRQHG WKDW D SUHVXPSWLRQ RI
GRLQJ>7@KHHYLOLVLQZKDWWKHDGYRFDWHILQGVKLPVHOI           SUHMXGLFH WR WKH GHIHQGDQWV LV SURSHU XQGHU VXFK
FRPSHOOHGWRUHIUDLQIURPGRLQJQRWRQO\DWWULDOEXWDOVRDV          FLUFXPVWDQFHVEHFDXVH
    6PLWKY+RIEDXHU                               1R      1R                               6PLWKY+RIEDXHU         

  LQDFDVHRIMRLQWUHSUHVHQWDWLRQRIFRQIOLFWLQJLQWHUHVWV>@        ,G  7KH GLVWULFW FRXUW DOVR PDGH QR UHIHUHQFH HLWKHU WR
  WKH HYLO    LV LQ ZKDW WKH DGYRFDWH ILQGV KLPVHOI      %DOJRR\HQjVUROHLQMXU\VHOHFWLRQRUWKHUHMHFWHG\HDUSOHD
  FRPSHOOHGWRUHIUDLQIURPGRLQJQRWRQO\DWWULDOEXWDOVR          EDUJDLQDQGGHQLHG6PLWKjVSHWLWLRQ
  DV WR SRVVLEOH SUHWULDO SOHD QHJRWLDWLRQV DQG LQ WKH
  VHQWHQFLQJSURFHVV,WPD\EHSRVVLEOHLQVRPHFDVHVWR                                     ,,',6&866,21
  LGHQWLI\IURPWKHUHFRUGWKHSUHMXGLFHUHVXOWLQJIURPDQ
  DWWRUQH\jVIDLOXUHWRXQGHUWDNHFHUWDLQWULDOWDVNVEXWHYHQ           ,DJUHHZLWKWKHPDMRULW\WKDWWKH6XSUHPH&RXUWKDVFOHDUO\
  ZLWKDUHFRUGRIWKHVHQWHQFLQJKHDULQJDYDLODEOHLWZRXOG           HVWDEOLVKHGWKDWDWDPLQLPXPDIHGHUDOKDEHDVFRXUWPXVW
  EHGLIILFXOWWRMXGJHLQWHOOLJHQWO\WKHLPSDFWRIDFRQIOLFW         JUDQWDZULWWRDVWDWHFRXUWSHWLWLRQHUZKRRYHUKLVSURWHVW
  RQWKHDWWRUQH\jVUHSUHVHQWDWLRQRIDFOLHQW$QGWRDVVHVV         DQGZLWKRXWIXUWKHULQTXLU\ZDVUHSUHVHQWHGE\FRXQVHOZKR
  WKH LPSDFW RI D FRQIOLFW RI LQWHUHVWV RQ WKH DWWRUQH\jV     DOVRUHSUHVHQWHGDQRWKHUGHIHQGDQWLQWKDWFDVH+ROORZD\Y
  RSWLRQVWDFWLFVDQGGHFLVLRQVLQSOHDQHJRWLDWLRQVZRXOG           $UNDQVDV86IDLOVWRREMHFWWR
  EHYLUWXDOO\LPSRVVLEOH7KXVDQLQTXLU\LQWRDFODLPRI           GXDOUHSUHVHQWDWLRQEXWGHPRQVWUDWHVWKDWLWFUHDWHGDQDFWXDO
  KDUPOHVV HUURU KHUH ZRXOG UHTXLUH XQOLNH PRVW FDVHV         FRQIOLFWWKDWDGYHUVHO\DIIHFWHGFRXQVHOjVSHUIRUPDQFH&X\OHU
  XQJXLGHGVSHFXODWLRQ                                                Y6XOOLYDQ86RUGHPRQVWUDWHV
                                                                       WKDWEXWIRUKLVFRXQVHOjVXQSURIHVVLRQDOHUURUVWKHUHVXOWRI
,GHPSKDVLVLQRULJLQDO                                            WKH SURFHHGLQJV ZRXOG KDYH EHHQ GLIIHUHQW 6WULFNODQG Y
                                                                       :DVKLQJWRQ  86     , DOVR DJUHH WKDW
    /DWHULQ6XOOLYDQWKH6XSUHPH&RXUWGHFOLQHGWRH[WHQG           6PLWKKDVQRW\HWVDWLVILHGWKHVHIRUPXODHDVWKH\KDYHEHHQ
+ROORZD\jVDXWRPDWLFUHYHUVDOUXOHWRFDVHVLQZKLFKWKHUH             UHFHQWO\FRQVWUXHG6HH0LFNHQVY7D\ORUBBB86BBB
ZDV QR REMHFWLRQ PDGH WR WKH MRLQW UHSUHVHQWDWLRQ DW WULDO   6&W
5DWKHU WKH &RXUW IRXQG WKDW m>L@Q RUGHU WR HVWDEOLVK D
YLRODWLRQRIWKH6L[WK$PHQGPHQWDGHIHQGDQWZKRUDLVHGQR               +RZHYHUDVVWDWHG,GLVDJUHHZLWKWKHUXOLQJWKDW6PLWKjV
REMHFWLRQDWWULDO>WRMRLQWUHSUHVHQWDWLRQ@PXVWGHPRQVWUDWH          UHTXHVWIRUDQHYLGHQWLDU\KHDULQJLVPRRW6XSUHPH&RXUW
WKDW DQ DFWXDO FRQIOLFW RI LQWHUHVW DGYHUVHO\ DIIHFWHG KLV     GHFLVLRQV FOHDUO\ HVWDEOLVKHG ORQJ DJR WKDW D SHUVRQ m   
ODZ\HUjV SHUIRUPDQFHl   86 DW   7KH &RXUW DOVR     FKDUJHGZLWKFULPHUHTXLUHVWKHJXLGLQJKDQGRIFRXQVHO
QRWHGWKDWmQRWKLQJLQ>LWV@SUHFHGHQWVVXJJHVWVWKDWWKH6L[WK        DWHYHU\VWHSLQWKHSURFHHGLQJVDJDLQVWKLPl6HH3RZHOOY
$PHQGPHQW UHTXLUHV VWDWH FRXUWV WKHPVHOYHV WR LQLWLDWH           $ODEDPD86HPSKDVLVDGGHGDQG
LQTXLULHVLQWRWKHSURSULHW\RIPXOWLSOHUHSUHVHQWDWLRQLQHYHU\       WKDWWKHmULJKWWRFRXQVHOLVWKHULJKWWRWKHHIIHFWLYHDVVLVWDQFH
FDVHl,GDW,QVWHDGm>D@EVHQWVSHFLDOFLUFXPVWDQFHV         RIFRXQVHOlVHH0F0DQQY5LFKDUGVRQ86
WULDOFRXUWVPD\DVVXPHHLWKHUWKDWPXOWLSOHUHSUHVHQWDWLRQ      Q   ,W LV DOVR FOHDU WKDW WKH ULJKW WR HIIHFWLYH
HQWDLOVQRFRQIOLFWRUWKDWWKHODZ\HUDQGKLVFOLHQWVNQRZLQJO\       DVVLVWDQFH RI FRXQVHO DSSOLHV DW WKH SOHD VWDJH RI WKH
DFFHSW VXFK ULVN RI FRQIOLFW DV PD\ H[LVWl  ,G IRRWQRWH   SURFHHGLQJV+LOOY/RFNKDUW86m>(@YHQ
RPLWWHG7KH&RXUWUHDVRQHGWKDWmWULDOFRXUWVQHFHVVDULO\           ZKHQWKHUHLVDERQDILGHGHIHQVHFRXQVHOPD\VWLOODGYLVHKLV
UHO\LQODUJHPHDVXUHXSRQWKHJRRGIDLWKDQGJRRGMXGJPHQW            FOLHQWWRSOHDGJXLOW\LIWKDWDGYLFHIDOOVZLWKLQWKHUDQJHRI
RI GHIHQVH FRXQVHO>@l VXFK WKDW  m>X@QOHVV WKH WULDO FRXUW   UHDVRQDEOHFRPSHWHQFHXQGHUWKHFLUFXPVWDQFHVl6HH8QLWHG
NQRZVRUUHDVRQDEO\VKRXOGNQRZWKDWDSDUWLFXODUFRQIOLFW
H[LVWVWKHFRXUWQHHGQRWLQLWLDWHDQLQTXLU\l,GIRRWQRWH
RPLWWHG  7KHUHIRUH SXUVXDQW WR 6XOOLYDQ ZKHUH FRXQVHO           
                                                                            6HH DOVR 7KH 6XSUHPH &RXUW  7HUP /HDGLQJ &DVHV  +DUY
HQJDJHVLQMRLQWUHSUHVHQWDWLRQDQGPDNHVQRREMHFWLRQWRWKH          / 5HY    FULWLFDO DQDO\VLV RI     0LFNHQVDQG WKH
                                                                       SUHFHGHQWV WKHUH DGGUHVVHG
    6PLWKY+RIEDXHU                                1R        1R                               6PLWKY+RIEDXHU        

UHFRPPHQGHGWKDWKLVSHWLWLRQEHGHQLHG6PLWKREMHFWHGWR               MRLQWUHSUHVHQWDWLRQDQGQRWKLQJUHDVRQDEO\LQGLFDWHVWRWKH
WKHPDJLVWUDWHjVUHSRUWDQGUHFRPPHQGDWLRQ                               WULDOFRXUWWKDWDFRQIOLFWH[LVWVDFRQYLFWHGGHIHQGDQWUDLVLQJ
                                                                          DQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPPXVWGHPRQVWUDWH
   ,QKLVREMHFWLRQVWRWKHPDJLVWUDWHMXGJHjVUHFRPPHQGDWLRQ            WKDWDQDFWXDOFRQIOLFWH[LVWHGWKDWDIIHFWHGKLVFRXQVHOjV
6PLWK VWDWHG WKDW KH VKRXOG EH HQWLWOHG WR DQ HYLGHQWLDU\        SHUIRUPDQFH,GDW
KHDULQJ WR GHYHORS D UHFRUG LQ VXSSRUW RI KLV LQHIIHFWLYH
DVVLVWDQFHFODLP+HDVVHUWHGWKDWKHmGLGHYHU\WKLQJLQKLV               5HFHQWO\LQ0LFNHQVY7D\ORU86BBB6
SRZHUWRGHPRQVWUDWHLQGLYLGXDOL]HGLQVWDQFHVRISUHMXGLFHRQ             &WWKH6XSUHPH&RXUWKDGEHIRUHLWWKH
DSSHDOl  s$ DW   +H DWWDFKHG KLV HDUOLHU PRWLRQ WR     TXHVWLRQ RI mZKDW D GHIHQGDQW PXVW VKRZ LQ RUGHU WR
UHPDQGILOHGLQWKH0LFKLJDQ&RXUWRI$SSHDOVVHHVXSUDSS              GHPRQVWUDWH D 6L[WK $PHQGPHQW YLRODWLRQ ZKHUH WKH WULDO
 ZKLFK KH FKDUDFWHUL]HG DV mUDLVLQJ VSHFLILF SRLQWV RI        FRXUWIDLOVWRLQTXLUHLQWRDSRWHQWLDOFRQIOLFWRILQWHUHVWDERXW
SUHMXGLFHlMXVWLI\LQJDKHDULQJs$DW+HFRQFOXGHG            ZKLFK LW NQHZ RU UHDVRQDEO\ VKRXOG KDYH NQRZQl  ,Q
m>,@WZRXOGEHLQKHUHQWO\XQIDLUDQGDGHQLDORIGXHSURFHVVWR           DIILUPLQJ WKH )RXUWK &LUFXLWjV HQ EDQF GHQLDO RI WKH
GLVPLVVWKLVSHWLWLRQIRUIDLOXUHWRSURYHSUHMXGLFHDIWHU0U            SHWLWLRQHUjVDSSOLFDWLRQIRUWKHZULWEURXJKWRQWKHEDVLVRI
6PLWKZDVXQIDLUO\SUHYHQWHGIURPGRLQJVR7KLV&RXUWKDV               LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOWKH&RXUWRSLQHG
WKHDELOLW\WRRUGHUDQHYLGHQWLDU\KHDULQJRQWKLVDVSHFWDQG
DWDPLQLPXPVKRXOGRUGHUVXFKDKHDULQJLQWKLVFDVHl,G                6LQFHWKLVZDVQRWDFDVHLQZKLFKDVLQ+ROORZD\
                                                                            FRXQVHO SURWHVWHG KLV LQDELOLW\ VLPXOWDQHRXVO\ WR
   2Q sDQXDU\   WKH GLVWULFW FRXUW DGRSWLQJ WKH            UHSUHVHQWPXOWLSOHGHIHQGDQWVDQGVLQFHWKHWULDOFRXUWjV
PDJLVWUDWHMXGJHjVUHFRPPHQGDWLRQGHQLHG6PLWKjV                    IDLOXUHWRPDNHWKH6XOOLYDQPDQGDWHGLQTXLU\GRHVQRW
SHWLWLRQ  5HJDUGLQJ 6PLWKjV REMHFWLRQ WKDW KH VKRXOG EH            UHGXFHWKHSHWLWLRQHUjVEXUGHQRISURRILWZDVDWOHDVW
HQWLWOHGWRDKHDULQJWKHGLVWULFWFRXUWVWDWHGWKDW6PLWKmIDLOV          QHFHVVDU\ WR YRLG WKH FRQYLFWLRQ IRU SHWLWLRQHU WR
WR LGHQWLI\ ZKDW IDFWV KH ZRXOG DWWHPSW WR SURYH DW DQ            HVWDEOLVKWKDWWKHFRQIOLFWRILQWHUHVWDGYHUVHO\DIIHFWHG
HYLGHQWLDU\KHDULQJWKDWZRXOGVXSSRUWKLVFODLPRIDGYHUVH                 KLVFRXQVHOjVSHUIRUPDQFH7KH&RXUWRI$SSHDOVKDYLQJ
HIIHFWl,GDW7KHFRXUWQRWHGWKDWLQmKLVVWDWHFRXUW            IRXQGQRVXFKHIIHFWVHH)GDWWKHGHQLDORI
UHTXHVWV IRU D KHDULQJ >6PLWK@ LGHQWLILHG VSHFLILF DOOHJHG          KDEHDVUHOLHIPXVWEHDIILUPHG
IDLOLQJVRIFRXQVHODWWULDOlEXWLWVWDWHGWKDWVXFKHUURUVmDUH
VXEMHFW WR UHYLHZ RQ WKH WULDO UHFRUG DQG GR QRW UHTXLUH D    ,GDW
VHSDUDWHHYLGHQWLDU\KHDULQJl,G%DVHGRQLWVRZQUHYLHZ
RI WKH WULDO UHFRUG WKH GLVWULFW FRXUW IRXQG WKDW WKH mVWDWH      +DYLQJ VR IRXQG WKH &RXUW H[SUHVVO\ FDXWLRQHG WKDW LWV
FRXUWjV FRQFOXVLRQ WKDW GHIHQGDQW µFLWHG QR HYLGHQFH WR            KROGLQJZDVOLPLWHGWRWKHLVVXHEHIRUHLWnLHZKDWEXUGHQ
VXJJHVWWKDWGHIHQVHFRXQVHODFWLYHO\OHVVHQHGKLVGHIHQVHDV             RISURRIXQGHUWKH6XOOLYDQUXOHZDVUHTXLUHGE\DSHWLWLRQHU
DUHVXOWRIKLVSHQGLQJIHORQ\FKDUJHjLVDPSO\VXSSRUWHGE\              WRVXFFHHGRQDQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPZKHQ
WKH UHFRUGl  ,G DW   7KH FRXUW FRQWLQXHG m>F@RXQVHO     WKH WULDO FRXUW GLG QRW LQTXLUH LQWR D SRWHQWLDO FRQIOLFW RI
FRQGXFWHGDYLJRURXVGHIHQVHORGJLQJDSSURSULDWHREMHFWLRQV              LQWHUHVWRIZKLFKLWNQHZRUVKRXOGKDYHNQRZQ0LFNHQV
WR HYLGHQFH HQJDJLQJ LQ H[WHQVLYH DQG FRPSHWHQW FURVV            6&WDW7KH&RXUWQRWHGWKDWWKHW\SHRIFRQIOLFW
H[DPLQDWLRQDQGSUHVHQWLQJWHVWLPRQ\RIGHIHQGDQWDQGWZR                LWVHOI DW LVVXH LQ 0LFNHQV ZDV RQH RI VXFFHVVLYH
RWKHUZLWQHVVHV7KH0LFKLJDQ6XSUHPH&RXUWUHDVRQDEO\                   UHSUHVHQWDWLRQQRWMRLQWUHSUHVHQWDWLRQDQGWKDWWKH6XOOLYDQ
FRQFOXGHGWKDWSHWLWLRQHUIDLOHGWRVKRZDQ\DGYHUVHHIIHFWRQ            UXOH DOWKRXJK KDYLQJ EHHQ mXQEOLQNLQJO\l DSSOLHG E\ WKH
KLVUHSUHVHQWDWLRQFDXVHGE\FRXQVHOjVFRQIOLFWRILQWHUHVWl             FLUFXLWVWRDEHY\RIYDULRXVHWKLFDO DWWRUQH\FRQIOLFWVKDG
                                                                          QHYHUEHHQH[WHQGHGE\WKH6XSUHPH&RXUWWRFRQIOLFWVRWKHU
     6PLWKY+RIEDXHU                              1R       1R                             6PLWKY+RIEDXHU        

WKDQMRLQWUHSUHVHQWDWLRQDWWULDO,GFLWLQJH[DPSOHV       DFWLYHO\OHVVHQHGKLVGHIHQVHDVDUHVXOWRIKLVSHQGLQJIHORQ\
RIYDULRXVW\SHVRIHWKLFDOFRQIOLFWVRILQWHUHVWVZKHUHLQWKH          FKDUJH QRU GR ZH ILQG HYLGHQFH RI DQ DFWXDO FRQIOLFW RI
FLUFXLWVKDYHDSSOLHGWKH6XOOLYDQUXOH7KH&RXUWWKHUHIRUH          LQWHUHVW RQ WKH UHFRUGl  :LWKRXW PHQWLRQ RI HLWKHU MXU\
HPSKDVL]HGWKDWDOWKRXJKLWDGMXGLFDWHGWKHTXHVWLRQEHIRUH             VHOHFWLRQ RU SOHD QHJRWLDWLRQ DQG IRFXVLQJ HQWLUHO\ RQ WKH
LW LW GLG VR XQGHU WKH mDVVXPSWLRQl WKDW WKH FDVH SURSHUO\   UHFRUG RI WKH WULDO EHIRUH WKH LPSDQHOHG MXU\ WKH FRXUW
SURFHHGHGXQGHU6XOOLYDQLQWKHORZHUFRXUWV+RZHYHUWKH             FRQWLQXHG m>W@R WKH FRQWUDU\ GHIHQVH FRXQVHO YLJRURXVO\
&RXUW FDXWLRQHG WKDW LWV GHFLVLRQ VKRXOG QRW EH                  SXUVXHGKLVREMHFWLRQVDQGSUHVHQWHGDVWURQJFDVHl,GDW
mPLVFRQVWUXHGl DV H[WHQGLQJ WKH 6XOOLYDQ UXOH WR FRQIOLFWV       7KHFRXUWZLWKRXWUHIHUHQFHWR6PLWKjVPRWLRQWRWKH
RWKHUWKDQMRLQWUHSUHVHQWDWLRQ,G6SHFLILFDOO\WKH&RXUW          0LFKLJDQ&RXUWRI$SSHDOVIRUDUHPDQGIRUSXUSRVHVRID
HPSKDVL]HGWKDW                                                         *LQWKHU KHDULQJ VWDWHG LQH[SOLFDEO\ m>L@I D FRQYLFWHG
                                                                        GHIHQGDQW EHOLHYHV WKDW KLV DWWRUQH\jV UHSUHVHQWDWLRQ ZDV
  >L@QUHVROYLQJWKLVFDVHRQWKHJURXQGVRQZKLFKLWZDV               EHORZ DQ REMHFWLYH VWDQGDUG RI UHDVRQDEOHQHVV WKH
  SUHVHQWHG WR XV ZH GR QRW UXOH XSRQ WKH QHHG IRU WKH      DSSURSULDWH SURFHGXUH LV WR VHHN D *LQWKHU KHDULQJl  ,G
  6XOOLYDQSURSK\OD[LVLQFDVHVRIVXFFHVVLYHUHSUHVHQWDWLRQ            FLWLQJ3HRSOHY*LQWKHU1:G0LFK
  >RU DOOHJHG FRQIOLFWV EDVHG XSRQ DQ\WKLQJ EXW MRLQW
  UHSUHVHQWDWLRQ@:KHWKHU6XOOLYDQVKRXOGEHH[WHQGHGWR              & &ROODWHUDO$WWDFN
  VXFKFDVHVUHPDLQVDVIDUDVWKHMXULVSUXGHQFHRIWKLV
  &RXUWLVFRQFHUQHGDQRSHQTXHVWLRQ                                    )HGHUDO 'LVWULFW &RXUW  2Q 'HFHPEHU   6PLWK
                                                                        ILOHGDSHWLWLRQLQIHGHUDOGLVWULFWFRXUWIRUDZULWRIKDEHDV
,GDWHPSKDVLVDGGHG                                           FRUSXVSXUVXDQWWR86&7KHSHWLWLRQDVVHUWHG
                                                                        WKDW%DOJRR\HQjVFRQIOLFWRILQWHUHVWHQWLWOHG6PLWKWRDQHZ
& $SSOLFDWLRQWR3HWLWLRQHUjV&DVH                                     WULDO
      0LFKLJDQ$SSHOODWH&RXUWVj'HFLVLRQV                               2Q 6HSWHPEHU   D PDJLVWUDWH MXGJH WR ZKRP WKH
                                                                        GLVWULFWFRXUWUHIHUUHGWKHPDWWHUVWDWHGm>$@QDFWXDOFRQIOLFW
  7KH 0LFKLJDQ &RXUW RI $SSHDOV IRXQG WKDW 3HWLWLRQHUjV          RILQWHUHVWLVREYLRXVIURPWKHIDFWWKDWGHIHQVHFRXQVHOKDG
LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO FODLP IDLOHG LQDVPXFK DV       FULPLQDOFKDUJHVSHQGLQJDJDLQVWKLPLQ.HQW&RXQW\DWWKH
mWKHMXGJHDQGSURVHFXWRULQYROYHGLQFRXQVHOjVFDVHZHUHQRW           WLPHRISHWLWLRQHUjVWULDOLQWKH.HQW&RXQW\&LUFXLW&RXUW
WKH VDPH DV GHIHQGDQWjV> WKHUHIRUH@ QR DFWXDO FRQIOLFW RI     7KH DFWXDO FRQIOLFW LV UHLQIRUFHG E\ WKH IDFW WKDW GHIHQVH
LQWHUHVWKDVEHHQVKRZQl3HRSOHY6PLWK1RVOLS            FRXQVHO SOHG JXLOW\ WR D UHGXFHG FKDUJH MXVW D PRQWK DIWHU
RS DW  0LFK &W $SS sXO\   XQSXEOLVKHG SHU      SHWLWLRQHUjVWULDOls$DW+HFRQFOXGHGm8QGHUWKH
FXULDPFLWLQJ3HRSOHY3LFNHQV1:G0LFK                FLUFXPVWDQFHVGHIHQVHFRXQVHOKDGHYHU\UHDVRQWRPDLQWDLQ
                                                                 JRRGUHODWLRQVZLWKWKHSURVHFXWRUjVRIILFHGXULQJSHWLWLRQHUjV
                                                                        WULDOl  ,G DW   +RZHYHU ZLWKRXW UHIHUHQFH WR MXU\
  7KH 0LFKLJDQ 6XSUHPH &RXUW DOVR KHOG WKDW 3HWLWLRQHUjV         VHOHFWLRQsXGJH/LHEHUjVDGPRQLWLRQDERXWWKHSUHWULDOSOHD
LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO FODLP IDLOHG RSLQLQJ DV       RIIHU RU WKH GLIIHUHQFH EHWZHHQ WKH \HDU RIIHU DQG WKH
IROORZV                                                                XOWLPDWH  WR \HDU VHQWHQFH WKH PDJLVWUDWH MXGJH
                                                                        H[SUHVVHGKLVRSLQLRQWKDW6PLWKKDGIDLOHGWRVKRZWKDWWKLV
    'HIHQGDQW DUJXHV WKDW KH ZDV GHQLHG WKH HIIHFWLYH            FRQIOLFWDGYHUVHO\DIIHFWHG%DOJRR\HQjVSHUIRUPDQFHDQGWKXV
  DVVLVWDQFH RI FRXQVHO LQ YLRODWLRQ RI KLV 6L[WK
  $PHQGPHQWULJKWVEHFDXVHKLVDWWRUQH\ZDVFKDUJHGZLWK
    6PLWKY+RIEDXHU                                1R       1R                              6PLWKY+RIEDXHU       

s$DW+DYLQJIRXQGQRFRQIOLFWRILQWHUHVWWKH&RXUW             DIHORQ\SHQGLQJLQWKHVDPHFRXQW\'HIHQGDQWDVNVWKDW
RI$SSHDOVGLGQRWUHDFKWKHTXHVWLRQRIZKHWKHUWKHDOOHJHG               ZH SUHVXPH D FRQIOLFW RI LQWHUHVW H[LVWV ZKHQHYHU DQ
FRQIOLFWKDGDQ\HIIHFWRQ%DOJRR\HQjVSHUIRUPDQFH                        DWWRUQH\ LV EHLQJ SURVHFXWHG LQ WKH VDPH FRXQW\ DV D
                                                                           FULPLQDOGHIHQGDQWZKRPKHUHSUHVHQWV:HGHFOLQHWR
   0LFKLJDQ6XSUHPH&RXUW2Q$XJXVW6PLWKILOHG                 FUHDWH VXFK D UXOH DQG KROG LQVWHDG WKDW LQ RUGHU WR
DQDSSOLFDWLRQIRUOHDYHWRDSSHDOLQWKH0LFKLJDQ6XSUHPH                 GHPRQVWUDWH WKDW D FRQIOLFW RI LQWHUHVW KDV YLRODWHG KLV
&RXUW,QKLVDSSOLFDWLRQ6PLWKVWDWHGm0U6PLWKPDGHD                6L[WK $PHQGPHQW ULJKWV D GHIHQGDQW mPXVW HVWDEOLVK
PRWLRQ WR UHPDQG IRU WKH SXUSRVH RI GHYHORSLQJ DQ                  WKDWDQDFWXDOFRQIOLFWRILQWHUHVWDGYHUVHO\DIIHFWHGKLV
HYLGHQWLDU\UHFRUGWRVXSSRUWKLVFODLPWKDWKHGLGQRWUHFHLYH            ODZ\HUjV SHUIRUPDQFHl  &X\OHU Y 6XOOLYDQ  86
WKHHIIHFWLYHDVVLVWDQFHRIFRXQVHOl$SSOLFDWLRQIRU/HDYHWR            
$SSHDODWYL3HRSOHY6PLWK0LFKILOHG$XJ7KH
DSSOLFDWLRQFRQWLQXHGm>W@KHGHQLDORIWKHPRWLRQZDVFOHDUO\           3HRSOHY6PLWK1:G0LFKIRRWQRWH
HUURQHRXV EHFDXVH LW GHQLHG 0U 6PLWK WKH RSSRUWXQLW\ WR         RPLWWHG7KHFRXUWFRQFOXGHGWKDWm>L@QWKLVFDVHGHIHQGDQW
PDNHDQHYLGHQWLDU\UHFRUGQHFHVVDU\WRVXSSRUWKLVFODLPWKDW           KDVFLWHGQRHYLGHQFHWRVXJJHVWWKDWGHIHQVHFRXQVHODFWLYHO\
KHGLGQRWUHFHLYHWKHHIIHFWLYHDVVLVWDQFHRIFRXQVHOl,G            OHVVHQHGKLVGHIHQVHDVDUHVXOWRIKLVSHQGLQJIHORQ\FKDUJH
FLWLQJ 3HRSOH Y *LQWKHU  1:G  0LFK          QRUGRZHILQGHYLGHQFHRIDQDFWXDOFRQIOLFWRILQWHUHVWRQWKH
6PLWKDWWDFKHGWRKLVDSSOLFDWLRQDFRS\RIWKHUHPDQGPRWLRQ            UHFRUG7RWKHFRQWUDU\GHIHQVHFRXQVHOYLJRURXVO\SXUVXHG
ZKLFKKHKDGILOHGLQWKHORZHUDSSHOODWHFRXUW,QDIRRWQRWH          KLVREMHFWLRQVDQGSUHVHQWHGDVWURQJFDVHl,GDW
LQKLVDSSOLFDWLRQ6PLWKVWDWHGm>V@KRXOGWKLV&RXUWILQGWKDW
DVKRZLQJRIDVSHFLILFSUHMXGLFHLVUHTXLUHGWKHDSSURSULDWH                'LVWULFW&RXUWjV2UGHU
UHPHG\ZRXOGEHWRUHPDQGWKLVFDVHWRWKHWULDOFRXUWIRUWKH
SXUSRVHRIKROGLQJDQHYLGHQWLDU\KHDULQJDWZKLFK0U6PLWK                7KH GLVWULFW FRXUW FRQFOXGHG WKDW WKH 0LFKLJDQ DSSHOODWH
ZLOOKDYHWKHRSSRUWXQLW\WRVKRZVSHFLILFSUHMXGLFHl,GDW           FRXUWVGLGQRWXQUHDVRQDEO\DSSO\6XSUHPH&RXUWSUHFHGHQW
 Q  $V LWV RSSRVLWLRQ WR 6PLWKjV DSSOLFDWLRQ WKH VWDWH   WR3HWLWLRQHUjVFODLPRILQHIIHFWLYHDVVLVWDQFHRIFRXQVHOEDVHG
VXEPLWWHGWKHLGHQWLFDOEULHILWKDGILOHGLQWKH0LFKLJDQ&RXUW         RQFRXQVHOjVDOOHJHGFRQIOLFWRILQWHUHVW7KHFRXUWKHOGWKDW
RI$SSHDOVFRPSOHWHZLWKWKHLQDFFXUDWHUHSUHVHQWDWLRQWKDW             WKH0LFKLJDQFRXUWVSURSHUO\IRXQGWKDWLQRUGHUIRU3HWLWLRQHU
6PLWKKDGQHYHUUHTXHVWHGDKHDULQJ$QVZHULQ2SSRVLWLRQ               WR VXFFHHG RQ KLV FODLP KH QRW RQO\ KDG WR SURYH WKDW D
WR $SSOLFDWLRQ IRU /HDYH WR $SSHDO 3HRSOH Y 6PLWK 1R        FRQIOLFWH[LVWHGEXWWKDWWKHFRQIOLFWDGYHUVHO\DIIHFWHGKLV
$WWDFKPHQWDW0LFKILOHG$XJ                 FRXQVHOjV SHUIRUPDQFH XQGHU 6XOOLYDQ  ,Q GRLQJ VR WKH
                                                                         GLVWULFWFRXUWUHMHFWHG3HWLWLRQHUjVFODLPnWKDWZKHUHKHKDV
   7KH0LFKLJDQ6XSUHPH&RXUWJUDQWHG6PLWKjVDSSOLFDWLRQ                VKRZQ WKDW WKH FRQIOLFW ZDV DFWXDO DQG QRW SRWHQWLDO
IRUOHDYHWRDSSHDOZLWKUHVSHFWWRWZRLVVXHVRQHRIZKLFK             SUHMXGLFHLVSUHVXPHGnRQWKHEDVLVWKDW6XOOLYDQFRPPDQGV
ZDV mZKHWKHU WKH GHIHQGDQW ZDV GHQLHG KLV FRQVWLWXWLRQDO          DVKRZLQJRIERWKDFWXDOFRQIOLFWDQGDGYHUVHHIIHFWEHIRUH
ULJKWWRHIIHFWLYHDVVLVWDQFHRIFRXQVHOZKHUHDWWKHWLPHRI           SUHMXGLFHZLOOEHSUHVXPHGIRUSXUSRVHVRIVXFFHHGLQJRQDQ
WKHWULDOKLVDWWRUQH\KDGEHHQFKDUJHGZLWKDFULPLQDORIIHQVH         LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLP%HFDXVH3HWLWLRQHU
LQWKHVDPH FRXQW\l3HRSOHY6PLWK1R0LFK                IDLOHGWRGHPRQVWUDWHWKDWKHZDVDGYHUVHO\HIIHFWHGE\KLV
0DU2Q0DUFKWKH0LFKLJDQ6XSUHPH                  FRXQVHOjVDOOHJHGFRQIOLFWDQGEHFDXVHWKHUHFRUGVKRZHGQR
&RXUWDIILUPHG6PLWKjVFRQYLFWLRQDQGVHQWHQFH6HH3HRSOH              LQGLFDWLRQWKDWDIDFWXDOUHFRUGFRXOGEHGHYHORSHGWRVXSSRUW
Y6PLWK1:G0LFK7KHFRXUWVWDWHGWKDW            3HWLWLRQHUjV FODLP WKH GLVWULFW FRXUW GHQLHG 3HWLWLRQHUjV
6PLWK mFLWHG QR HYLGHQFH WR VXJJHVW WKDW GHIHQVH FRXQVHO         DSSOLFDWLRQIRUWKHZULW
     6PLWKY+RIEDXHU                             1R       1R                            6PLWKY+RIEDXHU       

      04;45HYLHZRI'LVWULFW&RXUWjV2UGHU                       s$DW6PLWKjVPRWLRQIXUWKHUDOOHJHGWKDW%DOJRR\HQjV
                                                                       mSHUIRUPDQFH ZDV GHILFLHQW EHFDXVH DW WKH WLPH RI WULDO
   %HFDXVH WKH TXHVWLRQ RI ZKHWKHU WKH 6XOOLYDQjV OHVVHQHG      FRXQVHOjVDELOLW\WRSUDFWLFHODZFRPSHWHQWO\ZDVPDWHULDOO\
VWDQGDUG RI SURRI IRU D FODLP RI LQHIIHFWLYH DVVLVWDQFH RI    LPSDLUHG E\ GUXJ DQG DOFRKRO DGGLFWLRQ DQGRU PDWHULDO
FRXQVHO EDVHG XSRQ DQ DWWRUQH\jV FRQIOLFW RI LQWHUHVW IRU      FRQVHTXHQFHVIURPWKHSULRUDFWLYHDGGLFWLRQEHKDYLRUVl,G
DQ\WKLQJ RWKHU WKDQ MRLQW UHSUHVHQWDWLRQ UHPDLQV DQ mRSHQ       DW   2Q sXO\   WKH 0LFKLJDQ &RXUW RI $SSHDOV
TXHVWLRQl LQ WKH MXULVSUXGHQFH RI WKH 6XSUHPH &RXUW            GHQLHG WKH PRWLRQ WR UHPDQG VWDWLQJ RQO\ WKDW 6PLWK KDG
0LFNHQV6&WDWDQGLQIDFWZDVDQRSHQTXHVWLRQ          mIDLO>HG@WRSHUVXDGHWKH&RXUWRIWKHQHFHVVLW\RIDUHPDQGDW
DWWKHWLPH3HWLWLRQHUjVFDVHZDVKHDUG3HWLWLRQHUjVFODLPIDLOV      WKLV WLPHl  3HRSOH Y 6PLWK 1R  0LFK &W $SS
EHFDXVH LW LV QRW EDVHG XSRQ FOHDUO\ HVWDEOLVKHG 6XSUHPH       sXO\HPSKDVLVDGGHG
&RXUWSUHFHGHQWDVPDQGDWHGE\$('3$
                                                                         ,QKLVEULHIRQWKHPHULWV6PLWKDUJXHGWKDW%DOJRR\HQjV
   ,QGHHGLQ:LOOLDPVY7D\ORU86WKH        FRQFXUUHQWSURVHFXWLRQFUHDWHGDFRQIOLFWRILQWHUHVWVRVHYHUH
6XSUHPH &RXUW KHOG WKDW IRU SXUSRVHV RI WKH $('3$             WKDW6PLWKZDVHQWLWOHGWRUHOLHIZLWKRXWKDYLQJWRSURYHWKDW
mZKDWHYHUZRXOGTXDOLI\DVDQROGUXOHXQGHURXU7HDJXH>Y            WKH FRQIOLFW KDG DQ\ DGYHUVH HIIHFW RQ %DOJRR\HQjV
/DQH  86  @ MXULVSUXGHQFH ZLOO FRQVWLWXWH        UHSUHVHQWDWLRQ7KHVWDWHUHVSRQGHGLQDSSDUHQWGLVUHJDUGRI
µFOHDUO\ HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH          6PLWKjVPRWLRQIRUDUHPDQGIRUDQHYLGHQWLDU\KHDULQJWKDW
6XSUHPH &RXUW RI WKH 8QLWHG 6WDWHVj XQGHU  Gl       RQ WKH PDWWHU RI ZKHWKHU mFRXQVHOjV SHUIRUPDQFH ZDV
3XUVXDQWWR7HDJXHmDFDVHDQQRXQFHVDQHZUXOHLIWKHUHVXOW         GHILFLHQW DQG WKDW XQGHU DQ REMHFWLYH VWDQGDUG RI
ZDV QRW GLFWDWHG E\ SUHFHGHQW H[LVWLQJ DW WKH WLPH WKH        UHDVRQDEOHQHVVFRXQVHOZDVQRWIXQFWLRQLQJDVDQDWWRUQH\DV
GHIHQGDQWjVFRQYLFWLRQEHFDPHILQDOl6HH7HDJXHY/DQH             JXDUDQWHHGXQGHUWKH6L[WK$PHQGPHQWlFLWDWLRQVRPLWWHG
 86    HPSKDVLV LQ RULJLQDO  ,Q          6PLWKmGLGQRWVHHNDQHYLGHQWLDU\KHDULQJl$SSHOOHHjV
GHWHUPLQLQJZKHWKHUWKHUHOLHIUHTXHVWHGZRXOGFRQVWLWXWHD            %ULHI1RDW0LFK&W$SSILOHG2FW
QHZ UXOH WKH TXHVWLRQ EHFRPHV mZKHWKHU D VWDWH FRXUW
FRQVLGHULQJ>WKHGHIHQGDQWjV@FODLPDWWKHWLPHKLVFRQYLFWLRQ            2QsXO\WKH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHG
EHFDPHILQDOZRXOGKDYHIHOWFRPSHOOHGE\H[LVWLQJSUHFHGHQW           6PLWKjV FRQYLFWLRQ DQG VHQWHQFH  1RWKLQJ LQ WKH UHFRUG
WR FRQFOXGH WKDW WKH UXOH >KH@ VHHNV ZDV UHTXLUHG E\ WKH     LQGLFDWHGWKHH[WHQWLIDQ\WRZKLFKWKHDVVLVWDQWSURVHFXWLQJ
&RQVWLWXWLRQl&DVSDULY%RKOHQ86            DWWRUQH\VLQWKH2IILFHLQYROYHGLQ6PLWKjVDQG%DOJRR\HQjV
LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHGDOWHUDWLRQLQ          FDVHVRUWKHLUVXSHUYLVRUVIRUPDOO\RULQIRUPDOO\H[FKDQJHG
%RKOHQ                                                               LQIRUPDWLRQDERXWERWKFDVHVSDUWLFXODUO\WKHSOHDEDUJDLQV
                                                                       QHJRWLDWHGWRGLVSRVHRIWKHP1RUZDVWKHUHDQ\LQIRUPDWLRQ
  $FFRUGLQJO\DSSO\LQJ7HDJXHSULQFLSOHVWRWKHPDWWHUDW             LQ WKH UHFRUG DERXW ZKHWKHU DVVLVWDQWV LQ WKH 2IILFH
KDQGmFOHDUO\HVWDEOLVKHGIHGHUDOODZDVGHWHUPLQHGE\WKH            FXVWRPDULO\ QHJRWLDWH SOHD EDUJDLQV ZLWK RU ZLWKRXW WKH
6XSUHPH &RXUW RI WKH 8QLWHG 6WDWHVl PHDQV WKDW WKH UXOH       DSSURYDO RI WKHLU VXSHUYLVRUV LQFOXGLQJ WKH 3URVHFXWLQJ
VRXJKWE\3HWLWLRQHUKHUHnWKDWWKHOHVVHQHGVWDQGDUGRISURRI          $WWRUQH\1HYHUWKHOHVVZLWKRXWUHYLVLWLQJLWVHDUOLHUGHFLVLRQ
IRUDQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPDVVHWIRUWKLQ         QRWWRUHPDQGDVLWVGHQLDORIWKDWPRWLRQLPSOLHGLWPLJKW
&X\OHUY6XOOLYDQEHH[WHQGHGWRFRQIOLFWVRILQWHUHVWRWKHU          WKDW FRXUW GLVSRVHG RI 6PLWKjV LQHIIHFWLYH DVVLVWDQFH FODLP
WKDQWKRVHRIPXOWLSOHFRQFXUUHQWUHSUHVHQWDWLRQnPXVWKDYH             ZLWK WKH EDUH FRQFOXVLRQ WKDW m>E@HFDXVH WKH MXGJH DQG
EHHQ GLFWDWHG E\ 6XOOLYDQ  ,W FOHDUO\ ZDV QRW GLFWDWHG E\   SURVHFXWRULQYROYHGLQ>%DOJRR\HQjV@FDVHZHUHQRWWKHVDPH
6XOOLYDQ DQG DV H[SODLQHG E\ WKH &RXUW LQ 0LFNHQV WKH       DVGHIHQGDQWjVQRDFWXDOFRQIOLFWRILQWHUHVWKDVEHHQVKRZQl
       6PLWKY+RIEDXHU                                  1R    1R                             6PLWKY+RIEDXHU        

WRUHPDQGKLVFDVHWRWKHWULDOFRXUWIRUDQHYLGHQWLDU\KHDULQJ           FRQFHUQV ZKLFK OHG WR WKH 6XOOLYDQ VWDQGDUG RI SURRI IRU
WR GHYHORS DGGLWLRQDO IDFWXDO VXSSRUW IRU KLV LQHIIHFWLYH           FRQIOLFWV RI MRLQW UHSUHVHQWDWLRQ PD\ QRW EH SUHVHQW LQ
DVVLVWDQFHRIFRXQVHOFODLP0RWLRQWR5HPDQG1R                  VLWXDWLRQVLQYROYLQJRWKHUW\SHVRIFRQIOLFWV6HH0LFNHQV
0LFK &W $SS ILOHG 0D\   DV FRQWHPSODWHG E\           6&WDW7KDWmLVQRWWRVXJJHVWWKDWRQHHWKLFDO
0LFKLJDQODZVHH3HRSOHY*LQWKHU1:G0LFK                 GXW\LVPRUHRUOHVVLPSRUWDQWWKDQDQRWKHU7KHSXUSRVHRI
  7KH PRWLRQ DVVHUWHG VHYHUDO H[DPSOHV RI                    >WKH &RXUWjV@ +ROORZD\ DQG 6XOOLYDQ H[FHSWLRQV IURP WKH
%DOJRR\HQjVDOOHJHGO\GHILFLHQWSHUIRUPDQFHDVWULDOFRXQVHO              RUGLQDU\ UHTXLUHPHQWV RI 6WULFNODQG KRZHYHU LV QRW WR
LQFOXGLQJ                                                                 HQIRUFH WKH &DQRQV RI /HJDO (WKLFV EXW WR DSSO\ QHHGHG
                                                                           SURSK\OD[LVLQVLWXDWLRQVZKHUH6WULFNODQGLWVHOILVHYLGHQWO\
  0U6PLWKZKRLVEODFNDOVRZLVKHVWRFODLPRQDSSHDO                  LQDGHTXDWH WR DVVXUH YLQGLFDWLRQ RI WKH GHIHQGDQWjV 6L[WK
  WKDW FRXQVHO ZDV LQHIIHFWLYH EHFDXVH KH IDLOHG WR                 $PHQGPHQWULJKWWRFRXQVHOl,G
  FKDOOHQJH WKH FRPSRVLWLRQ RI WKH MXU\ EDVHG RQ WKH
  XQGHUUHSUHVHQWDWLRQ RI EODFNV  7KLV &RXUW FDQ WDNH                7KH IDFW WKDW LW ZDV QRW XQWLO 0LFNHQV WKDW WKH &RXUW
  MXGLFLDOQRWLFHWKDWWKHXQGHUUHSUHVHQWDWLRQRIEODFNVRQ               H[SUHVVO\ VWDWHG WKDW 6XOOLYDQ GRHV QRW VXSSRUW VXFK DQ
  .HQW&RXQW\&LUFXLW&RXUWMXULHVLVDVXEMHFWRIRQJRLQJ                 H[SDQVLRQDQGWKHIDFWWKDWWKH&RXUWVDLGVRLQGLFWDGRHV
  FRQFHUQLQ.HQW&RXQW\&RXQVHOjVIDLOXUHWRUDLVHWKLV                QRWKLQJWRFKDQJHWKHIDFWWKDWWKHUXOHVRXJKWE\3HWLWLRQHU
  FODLPPD\KDYHEHHQWKHUHVXOWRIDFRQIOLFWRILQWHUHVW                 ZDV QRW FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ DW WKH WLPH RI KLV
  FUHDWHGE\DIHORQ\GUXJFKDUJHSHQGLQJDJDLQVWKLPLQ                   FRQYLFWLRQQRULVDWWKHFXUUHQWWLPH6DLGGLIIHUHQWO\LWLVQRW
  WKH .HQW &RXQW\ &LUFXLW &RXUW  .HQW &RXQW\ &LUFXLW             0LFNHQVjGLFWDWKDWEDUV3HWLWLRQHUjVFODLPUDWKHULWLVWKH
  &RXUW 1R )+  $OWHUQDWLYHO\ 0U 6PLWK                  KROGLQJRI6XOOLYDQDQGRI+ROORZD\Y$UNDQVDV86
  ZLVKHVWRFODLPWKDWKHZDVGHQLHGKLVIHGHUDODQGVWDWH                   IURP ZKLFK 6XOOLYDQ DURVH ZKLFK EDUV
  FRQVWLWXWLRQDO ULJKW WR D WULDO E\ MXU\ EHFDXVH WKH MXU\        3HWLWLRQHUjVFDVHLQDVPXFKDV6XOOLYDQDSSOLHGRQO\WRMRLQW
  PHPEHUV GLG QRW UHSUHVHQW D IDLU FURVVVHFWLRQ RI WKH            UHSUHVHQWDWLRQ DQG WKH 6XSUHPH &RXUW KDV \HW WR H[WHQG
  FRPPXQLW\6HH'XUHQY0LVVLVVLSSL86                   6XOOLYDQjVUHDFKWRDQ\RWKHUW\SHRIFRQIOLFW7KDWLVQRWWR
  6&W/(G                                         VD\WKDWWKH&RXUWPD\QRWGRVRLQWKHIXWXUHEXWDWWKHWLPH
                                                                           3HWLWLRQHUjVFDVHZDVKHDUGDQGLQGHHGXSXQWLOWKHFXUUHQW
                                                                           WLPHWKH6XSUHPH&RXUWKDV\HWWRH[WHQG6XOOLYDQ%HFDXVH
                                                                           3HWLWLRQHUjV FODLP GRHV QRW UHVW XSRQ D 6XOOLYDQ FRQIOLFW
                                                                           3HWLWLRQHUjV FODLP GRHV QRW UHVW XSRQ mFOHDUO\ HVWDEOLVKHGl
                                                                          IHGHUDO SUHFHGHQW  7KXV WKH GHFLVLRQ IURP WKH 0LFKLJDQ
      ,Q   *LQWKHU WKH 0LFKLJDQ 6XSUHPH &RXUW KHOG WKDW                   DSSHOODWH FRXUWV GHQ\LQJ 3HWLWLRQHU UHOLHI ZDV QRW
     >D@ GHIHQGDQW ZKR ZLVKHV WR DGYDQFH FODLPV WKDW GHSHQG RQ
                                                                           XQUHDVRQDEOHIRUSXUSRVHVRI$('3$
     PDWWHUV QRW RI UHFRUG FDQ SURSHUO\ EH UHTXLUHG WR VHHN DW WKH WULDO
     FRXUW OHYHO DQ HYLGHQWLDU\ KHDULQJ IRU WKH SXUSRVH RI HVWDEOLVKLQJ      0RUHRYHU LW ZRXOG EH LPSURYLGHQW IRU XV WR IROORZ WKH
     KLV FODLPV ZLWK HYLGHQFH DV D SUHFRQGLWLRQ WR LQYRNLQJ WKH            RWKHUFLUFXLWVRUHYHQRXURZQGHFLVLRQVRQGLUHFWUHYLHZ
     SURFHVVHV RI WKH DSSHOODWH FRXUWV H[FHSW LQ WKH UDUH FDVH ZKHUH       ZKLFKKDYHLQWKHZRUGVRI0LFNHQVmXQEOLQNLQJO\lDSSOLHG
     WKH UHFRUG PDQLIHVWO\ VKRZV WKDW WKH MXGJH ZRXOG UHIXVH D             6XOOLYDQjVOHVVHQHGVWDQGDUGWRmDOONLQGVRIDOOHJHGDWWRUQH\
     KHDULQJ LQ VXFK D FDVH WKH GHIHQGDQW VKRXOG VHHN RQ DSSHDO QRW
                                                                           FRQIOLFWVl0LFNHQV6&WDW3HWLWLRQHUjV
     D UHYHUVDO RI KLV FRQYLFWLRQ EXW DQ RUGHU GLUHFWLQJ WKH WULDO
     FRXUW WR FRQGXFW WKH QHHGHG KHDULQJ
                                                                           DSSOLFDWLRQ LV JRYHUQHG E\ $('3$ DQG WKHUHIRUH RQO\
                                                                           GHFLVLRQV IURP WKH 8QLWHG 6WDWHV 6XSUHPH &RXUW PD\ EH
*LQWKHU    1:G DW  HPSKDVLV DGGHG
    6PLWKY+RIEDXHU                              1R       1R                                         6PLWKY+RIEDXHU          

UHOLHGXSRQDVDXWKRULW\IRUUHOLHI6HH86&G         XSVHWDQG6PLWKUHVSRQGHGE\WDNLQJKLPKRPH+HGHQLHG
:LOOLDPV  86 DW  VHH DOVR +DUULV Y 6WRYDOO    WKDWKHKDGHYHUKDGDQ\SK\VLFDOFRQWDFWZLWK'HZDDUGRU
)GWK&LUKROGLQJWKDWZKHQUHYLHZLQJ             WKUHDWHQHGKLPLQDQ\ZD\
DSHWLWLRQXQGHU$('3$mFOHDUO\HVWDEOLVKHGlIHGHUDO
SUHFHGHQW IRU SXUSRVHV RI REWDLQLQJ UHOLHI LV JRYHUQHG E\        2Q$XJXVWWKHMXU\UHWXUQHGDYHUGLFWRIJXLOW\
GHFLVLRQV IURP WKH 8QLWHG 6WDWHV 6XSUHPH &RXUW DQG LW LV     6WLOO PXWH DERXW KLV FRQIOLFW %DOJRR\HQ ILOHG QR SRVWWULDO
HUURUIRUDFRXUWWRUHO\RQDXWKRULW\RWKHUWKDWRIWKH6XSUHPH       PRWLRQVVXFKDVDPRWLRQIRUQHZWULDO
&RXUWRIWKH8QLWHG6WDWHV
                                                                         %DOJRR\HQjV3OHDDQG6HQWHQFH%HWZHHQ6PLWKjVWULDODQG
  :HWKHUHIRUHDJUHHZLWKWKHGLVWULFWFRXUWWKDWWKH0LFKLJDQ         VHQWHQFLQJ%DOJRR\HQUHVROYHGKLVRZQFULPLQDOFDVH2Q
DSSHOODWHFRXUWVGLGQRWXQUHDVRQDEO\DSSO\6XSUHPH&RXUW              6HSWHPEHUEHIRUHDGLIIHUHQW.HQW&RXQW\&LUFXLW
SUHFHGHQW LQ GHQ\LQJ 3HWLWLRQHU UHOLHI XQGHU KLV LQHIIHFWLYH    &RXUWMXGJHKHDJUHHGWRDQGHQWHUHGDSOHDRIJXLOW\WRWKH
DVVLVWDQFHRIFRXQVHOFODLPKRZHYHUZHGRVREDVHGRQWKH            UHGXFHGFKDUJHRIDWWHPSWHGSRVVHVVLRQZLWKLQWHQWWRGHOLYHU
IDFWWKDW3HWLWLRQHUVHHNVUHOLHIRQDEDVLVQRWVXSSRUWHGE\          FRFDLQH LQ H[FKDQJH IRU D VHQWHQFH RI ILYH PRQWKV
FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ LQDVPXFK DV WKH 6XSUHPH         LPSULVRQPHQW SOXV SUREDWLRQ DQG GLVPLVVDO RI WKH RULJLQDO
&RXUWKDVQHYHUDSSOLHG6XOOLYDQjVOHVVHQHGVWDQGDUGRISURRI          FKDUJH ZLWK LWV \HDU PD[LPXP   +H DOVR FHDVHG WR
WR DQ\ FRQIOLFW RWKHU WKDQ MRLQW UHSUHVHQWDWLRQ  6HH &LW\    UHSUHVHQW6PLWKEHLQJUHSODFHGDW6PLWKjVVHQWHQFLQJE\D
0DQDJHPHQW&RUSY86&KHPLFDO&R,QF)G              FRXUWDSSRLQWHGDWWRUQH\
WK&LUILQGLQJWKDWWKLV&RXUWPD\DIILUPWKH
GLVWULFWFRXUWIRUDQ\UHDVRQVXSSRUWHGE\WKHUHFRUG$VD             6PLWKjV3OHDDQG6HQWHQFH2Q2FWREHU6PLWK
UHVXOW3HWLWLRQHUjVUHTXHVWIRUDQHYLGHQWLDU\KHDULQJVRDVWR       SOHDGHGJXLOW\WREHLQJDVHFRQGIHORQ\RIIHQGHUDGPLWWLQJWR
HVWDEOLVKZKHWKHUKLVFRXQVHOjVSHUIRUPDQFHZDVDIIHFWHGE\            D FRQYLFWLRQ IRU EXUJODU\ LQ  LQ H[FKDQJH IRU WKH
WKHDOOHJHGFRQIOLFWRILQWHUHVWLVPRRW                              GLVPLVVDORIWKHIRXUWKIHORQ\RIIHQGHUFKDUJHsXGJH/LHEHU
                                                                       FRQVLVWHQW ZLWK KLV HYHRIWULDO ZDUQLQJ VHQWHQFHG 6PLWK
                        &21&/86,21                                     WKHQWRDWHUPRIWZHQW\ILYHWRIRUW\\HDUVLPSULVRQPHQW
  7KHGLVWULFWFRXUWjVRUGHUGHQ\LQJ3HWLWLRQHUjVDSSOLFDWLRQ          % 'LUHFW$SSHDOV
IRUDZULWRIKDEHDVFRUSXVEURXJKWXQGHU86&LV
$)),50('                                                                0LFKLJDQ&RXUWRI$SSHDOV7KURXJKDSSRLQWHGFRXQVHO
                                                                       6PLWK DSSHDOHG KLV FRQYLFWLRQ WR WKH 0LFKLJDQ &RXUW RI
                                                                       $SSHDOV RQ WKH WKHRU\ DPRQJ RWKHUV WKDW %DOJRR\HQjV
                                                                       FRQIOLFWRILQWHUHVWUHVXOWHGLQKLVEHLQJGHSULYHGRIKLV6L[WK
                                                                       $PHQGPHQW ULJKW WR WKH HIIHFWLYH DVVLVWDQFH RI FRXQVHO
                                                                       'HIHQGDQW$SSHOOHHjV%ULHIRQ$SSHDO1R0LFK
                                                                       &W$SSILOHG0D\6PLWKVLPXOWDQHRXVO\PRYHG

                                                                           
                                                                            $OWKRXJK WKH UHFRUG GRHV QRW       UHIOHFW ZK\ %DOJRR\HQ WHUPLQDWHG KLV
                                                                       UHSUHVHQWDWLRQ   RI   6PLWK   WKH   IDFW   WKDW   0LFKLJDQ   &RXUW   5XOH   
                                                                       DXWRPDWLFDOO\ VXVSHQGV D ODZ\HUjV OLFHQVH WR SUDFWLFH ODZ DV RI WKH GDWH RI
                                                                       KLV FRQYLFWLRQ LV MXGLFLDOO\ QRWLFHDEOH
    6PLWKY+RIEDXHU                             1R       1R                               6PLWKY+RIEDXHU       

s$DWHPSKDVLVDGGHG7KHH[LVWLQJUHFRUGGRHVQRW          BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
GLVFORVHZKDWGLVFXVVLRQVDERXWWKHSOHDRIIHULIDQ\WRRN
SODFHEHWZHHQ6PLWKDQG%DOJRR\HQRUEHWZHHQ%DOJRR\HQ                 &21&855,1*,13$57',66(17,1*,13$57
DQGWKHSURVHFXWRULQWKHUHPDLQLQJIHZKRXUVEHIRUHWKHWULDO        BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
   6PLWKjV7ULDODQG9HUGLFW2Q$XJXVWZLWKQR               2%(5'25)(5 'LVWULFW sXGJH FRQFXUULQJ LQ SDUW DQG
IXUWKHUUHFRUGPHQWLRQRIWKHSOHDRIIHUWKHWULDORI6PLWKRQ       GLVVHQWLQJLQSDUW,DJUHHZLWKWKHPDMRULW\WKDW6PLWKLVQRW
WKHFULPLQDOVH[XDOFRQGXFWLQGLFWPHQWFRPPHQFHGZLWKWKH            QRZHQWLWOHGWRWKHZULWWKDWKHVHHNV+RZHYHU,UHVSHFWIXOO\
WULDORIWKHKDELWXDORIIHQGHUFKDUJHWRIROORZLIQHFHVVDU\        GLVDJUHH ZLWK WKH FRQFOXVLRQ WKDW KLV UHTXHVW IRU DQ
$IWHUDURXWLQHYRLUGLUHDMXU\ZDVVHOHFWHG%DOJRR\HQjV          HYLGHQWLDU\KHDULQJLQWKHGLVWULFWFRXUWLVPRRW
YRLUGLUHLQTXLUHGDERXWWKHDWWLWXGHVRILQGLYLGXDOMXURUVLQ
WKHYHQLUHDERXWUDFHDQGVH[+RZHYHUKHGLGQRWTXHVWLRQ                                ,%$&.*5281'
WKHUDFLDOFRPSRVLWLRQRIWKHYHQLUHIURPZKLFKWKH6PLWK
MXU\ ZDV VHOHFWHG RU WKH SURFHVV E\ ZKLFK .HQW &RXQW\          %HFDXVH P\ YLHZ RI WKH UHFRUG GLIIHUV LQ VRPH UHVSHFWV
DVVHPEOHGYHQLUHV                                                   IURP WKDW RI P\ FROOHDJXHV , ZLOO EULHIO\ VXPPDUL]H WKH
                                                                      DVSHFWVZKLFKLQIOXHQFHP\FRQFOXVLRQWKDWWKHGLVWULFWFRXUW
   $WWKHWULDOWKHSURVHFXWLRQFDOOHGDPRQJRWKHUV'HZDDUG        VKRXOGKDYHKRQRUHG6PLWKjVUHTXHVWIRUDKHDULQJ
DQGKLVPRWKHU'HZDDUGWHVWLILHGWKDWRQVHYHUDORFFDVLRQV
KHPHW6PLWKRXWVLGHWKHJ\PIRUVRFLDODFWLYLWLHVVRPHWLPHV         $ )DFWV
DFFRPSDQLHG E\ 6PLWKjV UHJXODU ER\IULHQG DQG URRPPDWH
sRHO +X\VHU  'HZDDUG WHVWLILHG WKDW ODWH RQ KLV ODVW DQG      6PLWKjV &ULPLQDO &DVH ,Q sDQXDU\  /DUU\ 'RQQHOO
FULWLFDO HYHQLQJ ZLWK 6PLWK KH DFFRPSDQLHG 6PLWK WR KLV       6PLWK D  IRRW LQFK SRXQG JD\ $IULFDQ$PHULFDQ
DSDUWPHQW  7KHUH 6PLWK PDGH YDULRXV WKUHDWV LQFOXGLQJ D     PDOH ERG\EXLOGHU ZDV DUUHVWHG RQ FKDUJHV WKDW KH KDG
EL]DUUHSURSRVDOWKDWWKH\ILJKWHDFKRWKHU,I6PLWKDW         WKUHDWHQHGsRHO'HZDDUGDIRRWLQFKSRXQGZKLWH
SRXQGVZRQ'HZDDUGZRXOGVXEPLWWRRUDOVH[LI'HZDDUG              PDOHZKRH[HUFLVHGDWWKHVDPHJ\PZLWKDSDLURIVFLVVRUV
DWSRXQGVZRQKHZRXOGQRWVXEPLW'HZDDUGWHVWLILHG            DQG IRUFHG KLP WR VXEPLW WR RUDO VH[  $W WKH WLPH RI WKH
WKDWZKHQKHUHIXVHGWRDFFHSWWKHFKDOOHQJH6PLWKWKUHDWHQHG        DOOHJHGLQFLGHQW'HZDDUGZDV\HDUVROGDQG6PLWKZDV
EXWGLGQRWLQMXUHKLPZLWKDSDLURIVFLVVRUVZKHUHXSRQ           \HDUVROG6PLWKZDVFKDUJHGXQGHU0LFKLJDQODZZLWKRQH
'HZDDUGVXEPLWWHGDQGZHQWKRPH                                      IHORQ\ FRXQW RI ILUVW GHJUHH FULPLQDO VH[XDO FRQGXFW DQG
                                                                      VXEVHTXHQWO\ DV D KDELWXDO RIIHQGHU IRXUWK GHJUHH
  'HZDDUGjV PRWKHU WHVWLILHG RYHU REMHFWLRQ WKDW KHU VRQ     0D[LPXPSXQLVKPHQWIRUFRQYLFWLRQRQWKHVHFKDUJHVZDV
UHWXUQHGKRPHLQWKHHDUO\KRXUVRIWKHPRUQLQJLQTXHVWLRQ          OLIHLPSULVRQPHQW+LVFDVHZDVEURXJKWDQGSURVHFXWHGE\
XSVHWDQGPXWWHULQJWRKLPVHOIDQGWKDWODWHUWKDWPRUQLQJKH        DQDVVLVWDQWLQWKH2IILFHRIWKH3URVHFXWLQJ$WWRUQH\RI.HQW
WROGKHUVRPHWKLQJRIZKDWKDGWUDQVSLUHGWKHSUHYLRXVQLJKW          &RXQW\(DUO\RQLQWKHSURFHHGLQJV6PLWKILUHGKLVFRXUW
EHWZHHQKLPVHOIDQG6PLWK6KHWKHQFDOOHGWKHSROLFH               DSSRLQWHG FRXQVHO DQG UHWDLQHG sHIIUH\ s %DOJRR\HQ WR
                                                                      FRQGXFWWKHGHIHQVH
  6PLWKWRRNWKHVWDQGLQKLVRZQGHIHQVH2QWKHQLJKWLQ
TXHVWLRQ DFFRUGLQJ WR 6PLWK  KH KDG D FRQYHUVDWLRQ ZLWK       %DOJRR\HQjV&ULPLQDO&DVH6KRUWO\DIWHUKHZDVUHWDLQHG
'HZDDUG DERXW WKH IDFW WKDW KH 6PLWK ZDV JD\ WKDW KLV    E\6PLWKRQ$SULO%DOJRR\HQZDVFKDUJHGXQGHU
URRPPDWH ZDV KLV mFRPSDQLRQl DQG WKDW WKH\ KDG OLYHG          0LFKLJDQODZZLWKRQHIHORQ\FRXQWRISRVVHVVLRQZLWKLQWHQW
WRJHWKHU IRU WZR \HDUV  +H WHVWLILHG WKDW 'HZDDUG EHFDPH    WRGHOLYHUFRFDLQH+HIDFHGDPDQGDWRU\PLQLPXPVHQWHQFH
    6PLWKY+RIEDXHU                              1R    1R                            6PLWKY+RIEDXHU       

RIRQH\HDUDQGDPD[LPXPVHQWHQFHRIWZHQW\\HDUV+LV                $OVR\RXDUHFKDUJHGDVDWKIHORQ\RIIHQGHUZKLFK
FDVH ZDVDOVREURXJKWDQGSURVHFXWHGE\WKH2IILFHRI WKH          DJDLQ JUDQWV WR WKLV &RXUW WKH SRVVLELOLW\ RI XSRQ
3URVHFXWLQJ$WWRUQH\RI.HQW&RXQW\                                 FRQYLFWLRQRIWKHVXEVWDQWLDOFULPLQDOVH[XDOFRQGXFWD
                                                                     ILUVWGHJUHHFKDUJHDJDLQZKLFKLQFOXGHVWKHSRWHQWLDORI
   %DOJRR\HQjV 0RWLRQ 7R :LWKGUDZ 6PLWKjV WULDO ZDV           D OLIH VHQWHQFH  7KDW LV ZKDW \RXjUH JRLQJ LQWR 0U
VFKHGXOHG WR EHJLQ RQ $XJXVW    ,Q FRXUW WKDW      6PLWK7KHSURVHFXWLRQLQWKLVFDVHKDVRIIHUHG\RXWKH
PRUQLQJ%DOJRR\HQPRYHGWRZLWKGUDZDV6PLWKjVFRXQVHO             RSSRUWXQLW\ WR SOHDG WR DVVDXOW ZLWK LQWHQW WR FRPPLW
+HFODLPHGWKDWGLIILFXOWLHVLQHVWDEOLVKLQJFRQWDFWZLWK6PLWK      FULPLQDOVH[XDOFRQGXFWILUVWGHJUHHDWHQ\HDUIHORQ\
KDGGHSULYHGKLPRIVXIILFLHQWWLPHWRFRPSOHWHWKHLUILQDQFLDO      RIIHQVHLVWKDWFRUUHFW"
DUUDQJHPHQWVDQGWRSUHSDUH6PLWKjVGHIHQVH+HPDGHQR
PHQWLRQ RI KLV RZQ SHQGLQJ FULPLQDO FDVH  $SSDUHQWO\          05%$/*22<(17KDWjVFRUUHFW
REOLYLRXVRIWKHIDFWWKDW%DOJRR\HQZDVXQGHULQGLFWPHQWE\
WKHVDPHSURVHFXWRUjVRIILFHKLVFDVHZDVEHLQJKDQGOHGE\            7+( &2857 <RX VKRXOG NQRZ WKHQ VLU WKDW LV D
DGLIIHUHQWDVVLVWDQWSURVHFXWRUDQGZDVDVVLJQHGWRDGLIIHUHQW     VXEVWDQWLDO GLIIHUHQFH EHWZHHQ WKH PD[LPXP SRVVLEOH
MXGJH  sXGJH 'HQQLV % /LHEHU WKH .HQW &RXQW\ &LUFXLW    VHQWHQFHRIWHQ\HDUVDQGWKDWZKLFK\RXDUHSUHVHQWO\
&RXUWWULDOMXGJHDVVLJQHGWR6PLWKjVFDVHGHQLHGWKHPRWLRQ       IDFLQJZKLFKKDVDPD[LPXPVHQWHQFHRIDQ\ WHUPRI
+HQRWHGWKDWWKHWULDOKDGDOUHDG\EHHQGHOD\HGRQHPRQWK           \HDUVXSWROLIHLQSULVRQ
GXHWRWKHFRXUWjVRZQVFKHGXOHDQGWKDW6PLWKKDGRSWHGWR
UHSODFHFRXUWDSSRLQWHGFRXQVHOZLWKUHWDLQHGFRXQVHO+HVHW          <RXUDWWRUQH\LVEHVWDEOHWRGHVFULEHWR\RXWKHLPSDFW
WULDOWREHJLQWKHIROORZLQJPRUQLQJ                                RIWKHVHWZRRIIHQVHVLQWHUPVRIWLPHVHUYHGEXWLWLV
                                                                     FOHDUWRWKLV&RXUWLI\RXSOHDG\RXUVHQWHQFHZLOOEHOHVV
   6PLWKjV3OHD2IIHU$IWHUGHQ\LQJ%DOJRR\HQjVPRWLRQWR           WKDQ D FRQYLFWLRQ RI WKH RULJLQDO FKDUJH EHFDXVH WKH
ZLWKGUDZsXGJH/LHEHUUHPLQGHG6PLWKRQWKHUHFRUGWKDWWKH         VHQWHQFLQJ JXLGHOLQHV SURYLGH IRU D PXFK ORZHU
SURVHFXWLRQKDGPDGHDSOHDRIIHUWKDWZRXOGSHUPLW6PLWKWR         PLQLPXP VHQWHQFH IRU D WHQ\HDU IHORQ\ RIIHQVH WKHQ
SOHDG WR DVVDXOW ZLWK LQWHQW WR FRPPLW FULPLQDO VH[XDO       >VLF@DOLIHIHORQ\RIIHQVHGR\RXXQGHUVWDQGWKDW"
FRQGXFWZLWKDPD[LPXPVHQWHQFHRIWHQ\HDUVLQVWHDGRIWKH
OLIHVHQWHQFHZKLFK6PLWKIDFHGLIKHZHQWWRWULDODQGORVW          0560,7+ <HV,GR
sXGJH/LHEHUHQJDJHGLQWKHIROORZLQJFROORTX\ZLWK6PLWK
DQG%DOJRR\HQ                                                         7+(&2857.QRZLQJDQGXQGHUVWDQGLQJWKDWLWLV
                                                                     \RX>VLF@GHVLUHWRJRZLWKWKHWKIHORQ\VXSSOHPHQWLV
    7+(&2857,QWKHLQWHUYHQLQJWLPHRIKRXUV                 WKDWFRUUHFW"
  ,jPRIWKHRSLQLRQWKDW0U6PLWKZLOOKDYHWRVSHDNWR
  0U%DOJRR\HQZKRLVZHOOTXDOLILHGWRUHSUHVHQWKLPE\             0560,7+<HV
  YLUWXHRIKLVOHQJWK\H[SHULHQFH,VKRXOGFRQFOXGHZLWK
  WKHVHUHPDUNVWRRVRWKDW,NQRZWKDW0U6PLWKNQRZV              7+(&2857<RXZLOOKDYHWKHRSSRUWXQLW\LQP\
  WKDW\RXDUHFKDUJHGVLUZLWKFULPLQDOVH[XDOFRQGXFWLQ         RSLQLRQWRGLVFXVVWKLVPDWWHULQJUHDWGHWDLOZLWK0U
  WKH ILUVW GHJUHH DV \RX KDYH NQRZQ IURP \RXU              %DOJRR\HQ,ZDQWHGWRPDNHVXUHWKDW\RXNQHZZKDW
  DUUDLJQPHQW ZLWK WKH SRWHQWLDO RI OLIH RU DQ\ WHUP RI    ZDVFRPLQJIURPWKHEHQFKEHIRUHZHSURFHHGWRWULDOLQ
  \HDUV                                                             WKHPRUQLQJ