Court Opinion

ID: 2970548
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:16:00.611786+00
Date Added: 2024-06-11T15:01:54.297636
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$SSHOOHH      
                                    
                                      1R
            Y                      
                                     !
                                    
 /s83&2 5,67296.,                  
          'HIHQGDQW$SSHOODQW 
                                   1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
   1Rn%HUQDUG$)ULHGPDQ'LVWULFWsXGJH
                  $UJXHG6HSWHPEHU
             'HFLGHGDQG)LOHG'HFHPEHU
%HIRUH%2**6DQG&2/(&LUFXLWsXGJHV%(//&KLHI
                  'LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                            &2816(/
$5*8('+DUROG=*XUHZLW]*85(:,7=	5$%(1
'HWURLW 0LFKLJDQ IRU $SSHOODQW  5RVV , 0DF.HQ]LH
$66,67$17 81,7(' 67$7(6 $77251(< 'HWURLW

    
     7KH +RQRUDEOH 5REHUW +ROPHV %HOO &KLHI 8QLWHG 6WDWHV 'LVWULFW
sXGJH IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

                                   
     8QLWHG6WDWHVY5LVWRYVNL                    1R

0LFKLJDQIRU$SSHOOHH21%5,()+DUROG=*XUHZLW]
*85(:,7=	5$%(1'HWURLW0LFKLJDQIRU$SSHOODQW
5RVV , 0DF.HQ]LH $66,67$17 81,7(' 67$7(6
$77251(<'HWURLW0LFKLJDQIRU$SSHOOHH
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  %(// 'LVWULFW sXGJH  'HIHQGDQW$SSHOODQW /MXSFR
5LVWRYVNLDSSHDOVWKHGLVWULFWFRXUWRUGHUGHQ\LQJKLVPRWLRQ
IRUQHZWULDOILOHGXQGHU)(' 5 &5,0 3
   5LVWRYVNLZDVFRQYLFWHGE\DMXU\RQ2FWREHURI
WZR FRXQWV RI VXEVFULELQJ IDOVH FRUSRUDWH WD[ UHWXUQV LQ
YLRODWLRQ RI  86&   DQG HLJKW FRXQWV RI
VXEPLWWLQJIDOVHGRFXPHQWVWRWKH,QWHUQDO5HYHQXH6HUYLFH
LQYLRODWLRQRI86&5LVWRYVNLZDVVHQWHQFHGRQ
sXQHWRPRQWKVLPSULVRQPHQW+LVFRQYLFWLRQ
DQGVHQWHQFHZHUHDIILUPHGRQ$SULO8QLWHG6WDWHV
Y 5LVWRYVNL 1RV  	  WK &LU $SU 
  +LV SHWLWLRQ IRU ZULW RI FHUWLRUDUL ZDV GHQLHG RQ
'HFHPEHUDQGWKHPDQGDWHZDVLVVXHGE\WKH&RXUW
RI$SSHDOVRQ'HFHPEHU
    2Q0DUFK5LVWRYVNLILOHGDPRWLRQIRUQHZWULDO
RQWKHEDVLVRIQHZO\GLVFRYHUHGHYLGHQFH7KHGLVWULFWFRXUW
LQDQRUDORSLQLRQGHQLHGWKHPRWLRQIRUODFNRIMXULVGLFWLRQ
EHFDXVHLWZDVXQWLPHO\7KHGLVWULFWFRXUWQRWHGWKDWHYHQLI
LW GLG KDYH MXULVGLFWLRQ LW ZRXOG GHQ\ WKH PRWLRQ RQ WKH
PHULWV EHFDXVH WKH HYLGHQFH FRXOG KDYH EHHQ GLVFRYHUHG
HDUOLHU DQG ZDV FXPXODWLYH  7KH ZULWWHQ RUGHU GHQ\LQJ
5LVWRYVNL
VPRWLRQIRUQHZWULDOZDVHQWHUHGRQsXQH
  0RWLRQV IRU QHZ WULDO DUH JRYHUQHG E\ 5XOH  RI WKH
)HGHUDO5XOHVRI&ULPLQDO3URFHGXUH3ULRUWR'HFHPEHU
5XOHUHTXLUHGWKDWPRWLRQVIRUQHZWULDOEDVHGRQ
QHZO\GLVFRYHUHGHYLGHQFHEHEURXJKWZLWKLQWZR\HDUVDIWHU
    8QLWHG6WDWHVY5LVWRYVNL                    1R       1R                          8QLWHG6WDWHVY5LVWRYVNL             

'REEHUW86DWTXRWLQJ+RSW86DW          ILQDOMXGJPHQW5LVWRYVNL
VPRWLRQIRUQHZWULDOZKLFKZDV
$FFRUGLQJO\ ZH DIILUP WKH GLVWULFW FRXUW
V DSSOLFDWLRQ RI     ILOHGRQ0DUFKZRXOGKDYHEHHQWLPHO\XQGHUWKH
5XOH  DV DPHQGHG DQG LWV GHWHUPLQDWLRQ WKDW 5LVWRYVNL
V     5XOH  LQ HIIHFW DW WKH WLPH WKH RIIHQVH ZDV FRPPLWWHG
PRWLRQIRUQHZWULDOZDVXQWLPHO\                                    EHFDXVHLWZDVILOHGZLWKLQ WZR\HDUVDIWHUILQDOMXGJPHQW
                                                                      $PHQGPHQWVWR5XOHZHUHSURPXOJDWHGRQ$SULO
   %HFDXVHZHDIILUPWKHGLVWULFWFRXUW
VGHWHUPLQDWLRQWKDWWKH      DQG ZHQW LQWR HIIHFW RQ 'HFHPEHU    5XOH  DV
PRWLRQ IRU QHZ WULDO ZDV XQWLPHO\ ZH QHHG QRW DGGUHVV       DPHQGHGUHTXLUHVWKDWPRWLRQVIRUQHZWULDOEDVHGRQQHZO\
5LVWRYVNL
VDOWHUQDWLYHDUJXPHQWVWKDWWKHGLVWULFWFRXUWDEXVHG      GLVFRYHUHGHYLGHQFHEHEURXJKWZLWKLQWKUHH\HDUVDIWHUWKH
LWV GLVFUHWLRQ ZKHQ LW HQWHUHG LWV DOWHUQDWLYH ILQGLQJ WKDW   YHUGLFWRUILQGLQJRIJXLOW\7KHSXUSRVHRIWKHDPHQGPHQWV
5LVWRYVNLZDVQRWHQWLWOHGWRUHOLHIRQWKHPHULWVRIKLVPRWLRQ
IRUQHZWULDO
                                                                          
 ,Q VXPPDU\ ZH $)),50 WKH GLVWULFW FRXUW
V GHQLDO RI              3ULRU   WR WKH 'HFHPEHU   DPHQGPHQWV 5XOH  UHDG DV
'HIHQGDQW$SSHOODQW5LVWRYVNL
VPRWLRQIRUQHZWULDO                 IROORZV

                                                                          7KH FRXUW RQ PRWLRQ RI D GHIHQGDQW PD\ JUDQW D QHZ WULDO WR WKDW
                                                                          GHIHQGDQW LI UHTXLUHG LQ WKH LQWHUHVW RI MXVWLFH ,I WULDO ZDV E\ WKH
                                                                          FRXUW ZLWKRXW D MXU\ WKH FRXUW RQ PRWLRQ RI D GHIHQGDQW IRU D QHZ
                                                                          WULDO PD\ YDFDWH WKH MXGJPHQW LI HQWHUHG WDNH DGGLWLRQDO
                                                                          WHVWLPRQ\ DQG GLUHFW WKH HQWU\ RI D QHZ MXGJPHQW $ PRWLRQ IRU
                                                                          D QHZ WULDO EDVHG RQ WKH JURXQG RI QHZO\ GLVFRYHUHG HYLGHQFH
                                                                          PD\ EH PDGH RQO\ EHIRUH RU ZLWKLQ WZR \HDUV DIWHU ILQDO
                                                                          MXGJPHQW EXW LI DQ DSSHDO LV SHQGLQJ WKH FRXUW PD\ JUDQW WKH
                                                                          PRWLRQ RQO\ RQ UHPDQG RI WKH FDVH $ PRWLRQ IRU D QHZ WULDO
                                                                          EDVHG RQ DQ\ RWKHU JURXQGV VKDOO EH PDGH ZLWKLQ  GD\V DIWHU
                                                                          YHUGLFW RU ILQGLQJ RI JXLOW\ RU ZLWKLQ VXFK IXUWKHU WLPH DV WKH
                                                                          FRXUW PD\ IL[ GXULQJ WKH GD\ SHULRG

                                                                      )(' 5 &5,0 3  

                                                                          
                                                                           5XOH  DIWHU WKH  DPHQGPHQWV SURYLGHV

                                                                          2Q D GHIHQGDQW
V PRWLRQ WKH FRXUW PD\ JUDQW D QHZ WULDO WR WKDW
                                                                          GHIHQGDQW LI WKH LQWHUHVWV RI MXVWLFH VR UHTXLUH ,I WULDO ZDV E\ WKH
                                                                          FRXUW ZLWKRXW D MXU\ WKH FRXUW PD\ o RQ GHIHQGDQW
V PRWLRQ IRU
                                                                          QHZ WULDO o YDFDWH WKH MXGJPHQW WDNH DGGLWLRQDO WHVWLPRQ\ DQG
                                                                          GLUHFW WKH HQWU\ RI D QHZ MXGJPHQW $ PRWLRQ IRU QHZ WULDO EDVHG
                                                                          RQ QHZO\ GLVFRYHUHG HYLGHQFH PD\ EH PDGH RQO\ ZLWKLQ WKUHH
                                                                          \HDUV DIWHU WKH YHUGLFW RU ILQGLQJ RI JXLOW\ %XW LI DQ DSSHDO LV
                                                                          SHQGLQJ WKH FRXUW PD\ JUDQW WKH PRWLRQ RQO\ RQ UHPDQG RI WKH
                                                                          FDVH $ PRWLRQ IRU D QHZ WULDO EDVHG RQ DQ\ RWKHU JURXQGV PD\
                                                                          EH PDGH RQO\ ZLWKLQ  GD\V DIWHU WKH YHUGLFW RU ILQGLQJ RI JXLOW\
                                                                          RU ZLWKLQ VXFK IXUWKHU WLPH DV WKH FRXUW PD\ IL[ GXULQJ WKH GD\
                                                                          SHULRG

                                                                      )(' 5 &5,0 3 
        8QLWHG6WDWHVY5LVWRYVNL                          1R      1R                     8QLWHG6WDWHVY5LVWRYVNL       

WR5XOHZDVWREULQJXQLIRUPLW\LQWKHPDQQHULQZKLFKWKH                 WRPDNHLWVGHFLVLRQRQFRQVWLWXWLRQDOH[SRVWIDFWRJURXQGV
WLPHSHULRGIRUQHZWULDOPRWLRQVEDVHGRQQHZO\GLVFRYHUHG                   $WWKHWLPHWKHDPHQGPHQWVWR5XOHZHUHSURPXOJDWHGWKH
HYLGHQFHZDVFDOFXODWHG5LVWRYVNL
VPRWLRQIRUQHZWULDOLV                6XSUHPH&RXUWVSHFLILHGWKDWWKHDPHQGPHQWVZRXOGDSSO\WR
XQWLPHO\ XQGHU WKH DPHQGHG 5XOH  EHFDXVH LW ZDV ILOHG              DOOSHQGLQJFULPLQDOFDVHVLQVRIDUDVMXVWDQGSUDFWLFDEOH
DSSUR[LPDWHO\ ILYH PRQWKV DIWHU WKH WKUHH\HDU SHULRG                   6XSUHPH&RXUW2UGHU$SULO7KH:HVWFRXUW
PHDVXUHGIURPWKHGDWHRIKLVYHUGLFW                                        FRXOG KDYH DYRLGHG WKH FRQVWLWXWLRQDO LVVXH E\ IROORZLQJ
                                                                              8QLWHG6WDWHVYsHDQ:/1',OO$SU
  5LVWRYVNL
V ILUVW DUJXPHQW RQ DSSHDO LV WKDW WKH GLVWULFW           DQGKROGLQJWKDWLWZRXOGQRWEHMXVWDQGSUDFWLFDEOH
FRXUW
VFRQFOXVLRQWKDWKLVPRWLRQIRUQHZWULDOZDVXQWLPHO\                 WRDSSO\WKHDPHQGHG5XOHWRFDVHVZKHUHWKHWKUHH\HDUV
XQGHU5XOHDVDPHQGHGLQYLRODWHVWKH([3RVW)DFWR                   H[SLUHGEHIRUHWKHHIIHFWLYHGDWHRIWKHDPHQGHGUXOH
&ODXVHRIWKH8QLWHG6WDWHV&RQVWLWXWLRQ7KHWLPHOLQHVVRI
$SSHOODQW
V PRWLRQ IRU QHZ WULDO LV D WKUHVKROG TXHVWLRQ                 8QOLNHWKHGHIHQGDQWVLQ:HVWDQGsHDQ5LVWRYVNL
VDELOLW\
EHFDXVHLIDPRWLRQIRUQHZWULDOLVXQWLPHO\WKHFRXUWODFNV                WRILOHDPRWLRQIRUQHZWULDORQWKHEDVLVRIQHZO\GLVFRYHUHG
MXULVGLFWLRQ WR FRQVLGHU LW RQ WKH PHULWV  8QLWHG 6WDWHV Y        HYLGHQFHZDVQRWHOLPLQDWHGE\WKHDSSOLFDWLRQRIDPHQGHG
.RHKOHU  )G   WK &LU  FLWLQJ 8QLWHG             5XOH7KHUHZDVQRGHQLDORIKLVVXEVWDQWLYHULJKWWRILOH
6WDWHV Y 6PLWK  86     6HH DOVR            DPRWLRQIRUQHZWULDO7KHRQO\HIIHFWRIWKHDPHQGPHQWZDV
8QLWHG6WDWHVY0RUHQR)GG&LU                     WRGHFUHDVHWKHWLPHIUDPHLQZKLFKKHFRXOGILOHKLVPRWLRQ
FRXUWODFNVMXULVGLFWLRQWRFRQVLGHUXQWLPHO\PRWLRQIRUQHZ                 5LVWRYVNLZDVFRQYLFWHGRQ2FWREHU$IWHU5XOH
                                                                              ZDVDPHQGHGRQ'HFHPEHU5LVWRYVNLVWLOOKDGXQWLO
                                                                              2FWREHU   PRUH WKDQ QLQHWHHQ PRQWKV WR ILOH D
     
                                                                              PRWLRQ IRU QHZ WULDO RQ WKH EDVLV RI QHZO\ GLVFRYHUHG
      7KH $GYLVRU\ &RPPLWWHH H[SODLQHG WKDW XVLQJ WKH GDWH RI WKH ILQDO      HYLGHQFH%HFDXVHKHKDGDPSOHWLPHWREULQJKLVPRWLRQIRU
MXGJPHQW DV WKH WULJJHULQJ HYHQW FDXVHG GLVSDULW\ LQ WKH DPRXQW RI WLPH      QHZ WULDO DSSOLFDWLRQ RI 5XOH  WR KLP ZDV MXVW DQG
DYDLODEOH IRU D GHIHQGDQW WR ILOH D PRWLRQ IRU QHZ WULDO LQ WKH HYHQW RI DQ   SUDFWLFDEOH  $SSOLFDWLRQ RI WKH WLPH OLPLWDWLRQ XQGHU
DSSHDO EHFDXVH VRPH FRXUWV PHDVXUHG WKH WZR\HDU SHULRG IURP WKH GDWH
RI WKH DSSHOODWH FRXUW
V MXGJPHQW DQG RWKHU FRXUWV IURP WKH GDWH RI LWV       DPHQGHG5XOHPHUHO\FKDQJHGWKHPRGHRISURFHGXUH,W
PDQGDWH                                                                      GLG QRW DVVLJQ PRUH GLVDGYDQWDJHRXV FULPLQDO RU SHQDO
                                                                              FRQVHTXHQFHVWRDQDFWWKDQGLGWKHODZLQSODFHZKHQWKHDFW
     ,W LV WKH LQWHQW RI WKH &RPPLWWHH WR UHPRYH WKDW HOHPHQW RI              RFFXUUHG :HDYHU  86 DW  Q QRU GLG LW DIIHFW
     LQFRQVLVWHQF\ E\ XVLQJ WKH WULDO FRXUW
V YHUGLFW RU ILQGLQJ RI           PDWWHUVRIVXEVWDQFHRUDOWHUVXEVWDQWLDOSHUVRQDOULJKWVRIWKH
     JXLOW\ DV WKH WULJJHULQJ HYHQW 7KH FKDQJH DOVR IXUWKHUV LQWHUQDO
     FRQVLVWHQF\ ZLWKLQ WKH UXOH LWVHOI WKH WLPH IRU ILOLQJ D PRWLRQ IRU
                                                                              GHIHQGDQW6HH0LOOHU86DW/LNHWKH&RXUWLQ
     QHZ WULDO RQ DQ\ RWKHU JURXQG FXUUHQWO\ UXQV IURP WKDW VDPH              'REEHUW ZH ILQG WKDW WKH IROORZLQJ ODQJXDJH IURP +RSW
     HYHQW                                                                   VXPPDUL]HVRXUFRQFOXVLRQWKDWWKHFKDQJHZDVSURFHGXUDO
                                                                              DQGQRWDYLRODWLRQRIWKH([3RVW)DFWR&ODXVH
)(' 5 &5,0 3  $GYLVRU\ &RPPLWWHH 1RWHV  $PHQGPHQWV 7KH
WLPH SHULRG IRU ILOLQJ PRWLRQV IRU QHZ WULDO ZDV H[SDQGHG IURP WZR \HDUV        7KHFULPHIRUZKLFKWKHSUHVHQWGHIHQGDQWZDVLQGLFWHG
WR WKUHH \HDUV WR FRPSHQVDWH IRU ZKDW ZRXOG KDYH RWKHUZLVH UHVXOWHG LQ
OHVV WLPH WKDQ WKDW FXUUHQWO\ FRQWHPSODWHG LQ WKH UXOH IRU ILOLQJ VXFK
                                                                                WKHSXQLVKPHQWSUHVFULEHGWKHUHIRUDQGWKHTXDQWLW\RU
PRWLRQV ,G                                                                   WKHGHJUHHRISURRIQHFHVVDU\WRHVWDEOLVKKLVJXLOWDOO
                                                                                UHPDLQHGXQDIIHFWHGE\WKHVXEVHTXHQWVWDWXWH
     
    $UWLFOH , RI WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ SURYLGHV WKDW QHLWKHU
&RQJUHVV QRU DQ\ 6WDWH VKDOO SDVV DQ\ H[ SRVW IDFWR /DZ 86 & $%
DUW ,   FO  DUW ,   FO 
       8QLWHG6WDWHVY5LVWRYVNL                       1R        1R                       8QLWHG6WDWHVY5LVWRYVNL         

 UHVXOWHG LQ D SURFHGXUDO FKDQJH QRW DQ LQFUHDVH LQ             WULDOFLWLQJFDVHV:KHWKHUWKHGLVWULFWFRXUW
VDSSOLFDWLRQRI
SXQLVKPHQWDQGWKDWLWVDSSOLFDWLRQWRDGHIHQGDQWZKRZDV                 DPHQGHG5XOHZDVDYLRODWLRQRIWKH([3RVW)DFWR&ODXVH
FRQYLFWHG LQ  GLG QRW FRQVWLWXWH DQ H[ SRVW IDFWR              LVDOHJDOTXHVWLRQZHUHYLHZGHQRYR6HH8QLWHG6WDWHVY
YLRODWLRQ  8QLWHG 6WDWHV Y 7DYL]RQ 1RV              )XWUHOO)GWK&LU$GHIHQGDQW
V
:/DW
WK                   FODLPWKDWKLVRUKHUVHQWHQFHZDVLPSRVHGLQYLRODWLRQRIWKH
&LUsDQ                                                       H[SRVWIDFWRFODXVHSUHVHQWVDTXHVWLRQRIODZDQGZHUHYLHZ
                                                                            TXHVWLRQVRIODZGHQRYRTXRWLQJ8QLWHG6WDWHVY/RJDO
   :HDUHDZDUHRIRQO\RQHFDVHWKDWKDVKHOGWKHDSSOLFDWLRQ              )GWK&LU
RIDPHQGHG5XOHWRFRQVWLWXWHDQH[SRVWIDFWRYLRODWLRQ
,Q8QLWHG6WDWHVY:HVW)6XSSG1'$OD                      7KH([3RVW)DFWR&ODXVHIRUELGV&RQJUHVVWRHQDFWDQ\
WKHGLVWULFWFRXUWIRXQGWKDWWKHFKDQJHPDGHLQ5XOH                ODZZKLFKLPSRVHVDSXQLVKPHQWIRUDQDFWZKLFKZDVQRW
 ZKLOH WKH GHIHQGDQW
V DSSHDO ZDV SHQGLQJ ZDV D                   SXQLVKDEOH DW WKH WLPH LW ZDV FRPPLWWHG RU LPSRVHV
VXEVWDQWLYHFKDQJHEHFDXVHLWFRQVWLWXWHGDYHU\PDWHULDO                DGGLWLRQDO SXQLVKPHQW WR WKDW WKHQ SUHVFULEHG :HDYHU Y
DOWHUDWLRQLQWKHSURFHGXUDOULJKWVRISHUVRQVZKRFODLPWREH              *UDKDP86IRRWQRWHRPLWWHGTXRWLQJ
HQWLWOHGWRDQHZWULDOEHFDXVHRIQHZO\GLVFRYHUHGHYLGHQFH              &XPPLQJV Y 0LVVRXUL  86  :DOO  
,GDW7KHFRXUWDFFRUGLQJO\KHOGWKDWWKHUHWURDFWLYH                  >7@ZR FULWLFDO HOHPHQWV PXVW EH SUHVHQW IRU D
DSSOLFDWLRQRIWKHDPHQGHGUXOHZKLOHDGHIHQGDQW
VDSSHDO                  FULPLQDO RU SHQDO ODZ WR EH H[ SRVW IDFWR  LW PXVW EH
ZDVSHQGLQJYLRODWHGWKHH[SRVWIDFWRSURYLVLRQ,G                      UHWURVSHFWLYHWKDWLVLWPXVWDSSO\WRHYHQWVRFFXUULQJEHIRUH
                                                                            LWVHQDFWPHQWDQGLWPXVWGLVDGYDQWDJHWKHRIIHQGHUDIIHFWHG
  ,WLVVLJQLILFDQWWKDWLQ:HVWWKHGHIHQGDQWZDVVHQWHQFHGLQ             E\LW:HDYHU86DWIRRWQRWHRPLWWHG6HHDOVR
1RYHPEHU   $FFRUGLQJO\ LI DPHQGHG 5XOH  ZHUH                .HOORJJY6KRHPDNHU)GWK&LU
DSSOLHGWRKLVFDVHKLVWKUHH\HDUSHULRGIRUILOLQJDPRWLRQ
IRUQHZWULDORQWKHEDVLVRIQHZO\GLVFRYHUHGHYLGHQFHZRXOG                  :LWKUHVSHFWWRWKHILUVWHOHPHQWUHWURVSHFWLYHDSSOLFDWLRQ
KDYHH[SLUHGEHIRUHWKHDPHQGPHQWVWR5XOHHYHQZHQW                     >W@KHFULWLFDOTXHVWLRQLVZKHWKHUWKHODZFKDQJHVWKHOHJDO
LQWRHIIHFW7KHGLVWULFWFRXUWZDVDSSURSULDWHO\FRQFHUQHG                FRQVHTXHQFHV RI DFWV FRPSOHWHG EHIRUH LWV HIIHFWLYH GDWH
DERXWWKHIDLUQHVVRIDSSO\LQJDPHQGHG5XOHZKHQWRGR                   :HDYHU86DW7KHIRFXVLQGHWHUPLQLQJZKHWKHU
VR ZRXOG HOLPLQDWH WKH GHIHQGDQW
V RSSRUWXQLW\ WR ILOH D            D QHZ ODZ YLRODWHV WKH H[ SRVW IDFWR FODXVH LV WKH WLPH WKH
PRWLRQIRUQHZWULDO+RZHYHUWKHFRXUWLQ:HVWGLGQRWKDYH              RIIHQVH ZDV FRPPLWWHG  .HOORJJ  )G DW  FLWLQJ
                                                                            :HDYHU  86 DW   ,Q WKLV FDVH WKH RIIHQVHV ZHUH
                                                                            FRPPLWWHGLQDQG5XOHZDVDPHQGHG
                                                                           LQ'HFHPEHU7KHGLVWULFWFRXUW
VDSSOLFDWLRQRIWKHWLPH
     7KLV FRXUW LQ DQ XQSXEOLVKHG RSLQLRQ DSSOLHG DPHQGHG 5XOH  WR
                                                                            OLPLWDWLRQLQDPHQGHG5XOHZDVUHWURVSHFWLYHEHFDXVHLW
EDU D  PRWLRQ IRU QHZ WULDO RQ D  FRQYLFWLRQ WKDW KDG EHFRPH
                                   1R   :/  WK
ILQDO LQ  8QLWHG 6WDWHV Y %OXH
                                                                            FKDQJHGWKHFULPLQDOUHYLHZSURFHGXUHIRURIIHQVHVRFFXUULQJ
&LU 1RY       %HFDXVH WKH PRWLRQ ZRXOG KDYH EHHQ XQWLPHO\        EHIRUHWKHGDWHRILWVHQDFWPHQW
XQGHU HLWKHU WKH ROG RU WKH DPHQGHG 5XOH  LW ZDV XQQHFHVVDU\ LQ %OXH
WR FRQVLGHU WKH H[ SRVW IDFWR LPSOLFDWLRQV RI DSSO\LQJ 5XOH  DV             5HWURVSHFWLYHDSSOLFDWLRQDORQHKRZHYHULVQRWHQRXJKWR
DPHQGHG $W OHDVW WZR RWKHU FRXUWV KDYH VLPLODUO\ DSSOLHG DPHQGHG 5XOH      PDNH RXW DQ H[ SRVW IDFWR YLRODWLRQ  7KH ([ 3RVW )DFWR
 WR FDVHV ZKHUH WKH YHUGLFWV ZHUH UHQGHUHG EHIRUH WKH HIIHFWLYH GDWH RI
WKH DPHQGPHQW ZLWKRXW GLVFXVVLRQ 6HH 8QLWHG 6WDWHV Y 5RELQVRQ 1R
                                                                            &ODXVH GRHV QRW JXDUDQWHH WKDW D FULPLQDO GHIHQGDQW
V FDVH
  :/  WK &LU )HE   8QLWHG 6WDWHV Y
                                                                            ZLOOEHJRYHUQHGLQDOOUHVSHFWVE\WKHODZLQIRUFHZKHQWKH
&DPDFKR 1R 6  &5   :/  6' 1< 'HF              FULPHZDVFRPPLWWHG'REEHUWY)ORULGD86

     8QLWHG6WDWHVY5LVWRYVNL                    1R       1R                            8QLWHG6WDWHVY5LVWRYVNL              

  >7@KH FRQVWLWXWLRQDO SURYLVLRQ ZDV LQWHQGHG WR       WKDWEHFDXVHDFKDQJHLQWKHVHQWHQFLQJJXLGHOLQHVDIWHUWKH
VHFXUH VXEVWDQWLDO SHUVRQDO ULJKWV DJDLQVW DUELWUDU\ DQG        RIIHQVH ZDV FRPPLWWHG LQFUHDVHG WKH QXPEHU RI SULPDU\
RSSUHVVLYHOHJLVODWLRQVHH0DOOR\Y6RXWK&DUROLQD86        RIIHQVH  SRLQWV DVVLJQHG WR VH[XDO RIIHQVHV E\  WKH
 DQGQRWWROLPLWWKHOHJLVODWLYHFRQWURORI         FKDQJHFRXOGQRWEHGHHPHGSURFHGXUDOEHFDXVHLWGLUHFWO\
UHPHGLHVDQGPRGHVRISURFHGXUHZKLFKGRQRWDIIHFWPDWWHUV           DQG DGYHUVHO\ DIIHFWHG WKH VHQWHQFH WKH SHWLWLRQHU ZRXOG
RIVXEVWDQFH'REEHUW86DWTXRWLQJ%HD]HOOY         UHFHLYH0LOOHU86DW,Q'REEHUWRQWKHRWKHU
2KLR  86     7KXV QR H[ SRVW IDFWR   KDQGWKH&RXUWUHMHFWHGWKHSHWLWLRQHU
VDUJXPHQWWKDWFKDQJHV
YLRODWLRQ RFFXUV LI D FKDQJH GRHV QRW DOWHU VXEVWDQWLDO      LQ WKH )ORULGD GHDWK SHQDOW\ VWDWXWH SRVHG DQ H[ SRVW IDFWR
SHUVRQDO ULJKWV EXW PHUHO\ FKDQJHV PRGHV RI SURFHGXUH       YLRODWLRQ>7@KHFKDQJHLQWKHVWDWXWHZDVFOHDUO\SURFHGXUDO
ZKLFKGRQRWDIIHFWPDWWHUVRIVXEVWDQFH0LOOHUY)ORULGD        7KH QHZ VWDWXWH VLPSO\ DOWHUHG WKH PHWKRGV HPSOR\HG LQ
 86    TXRWLQJ 'REEHUW   86 DW     GHWHUPLQLQJZKHWKHUWKHGHDWKSHQDOW\ZDVWREHLPSRVHG
  (YHQ WKRXJK LW PD\ ZRUN WR WKH GLVDGYDQWDJH RI D   WKHUHZDVQRFKDQJHLQWKHTXDQWXPRISXQLVKPHQWDWWDFKHG
GHIHQGDQW D SURFHGXUDO FKDQJH LV QRW H[ SRVW IDFWR         WRWKHFULPH,GDW7KH'REEHUW&RXUWFRPSDUHG
'REEHUW86DW6HHDOVR/DQGJUDIY86,)LOP              WKHFDVHEHIRUHLWWR+RSWY8WDK86LQ
3URGV  86   Q  :KLOH ZH KDYH        ZKLFKWKH&RXUWFRQVLGHUHGDFKDQJHLQWKHUXOHVRIHYLGHQFH
VWULFWO\ FRQVWUXHG WKH ([ 3RVW )DFWR &ODXVH WR SURKLELW       EHWZHHQ WKH GDWH RI WKH RIIHQVH DQG WKH GDWH RI WKH WULDO
DSSOLFDWLRQRIQHZVWDWXWHVFUHDWLQJRULQFUHDVLQJSXQLVKPHQWV        (YHQ WKRXJK WKLV FKDQJH LQ WKH ODZ REYLRXVO\ KDG D
DIWHUWKHIDFWZHKDYHXSKHOGLQWHUYHQLQJSURFHGXUDOFKDQJHV         GHWULPHQWDOLPSDFWXSRQWKHGHIHQGDQWWKH&RXUWIRXQGWKDW
HYHQLIDSSOLFDWLRQRIWKHQHZUXOHRSHUDWHGWRDGHIHQGDQW
V         WKHODZZDVQRWH[SRVWIDFWREHFDXVHLWQHLWKHUPDGHFULPLQDO
GLVDGYDQWDJHLQWKHSDUWLFXODUFDVH2QWKHRWKHUKDQGD         DWKHUHWRIRUHLQQRFHQWDFWQRUDJJUDYDWHGDFULPHSUHYLRXVO\
FKDQJHLQWKHODZWKDWDOWHUVDVXEVWDQWLDOULJKWFDQEHH[SRVW      FRPPLWWHGQRUSURYLGHGJUHDWHUSXQLVKPHQWQRUFKDQJHGWKH
IDFWRHYHQLIWKHVWDWXWHWDNHVDVHHPLQJO\SURFHGXUDOIRUP        SURRIQHFHVVDU\WRFRQYLFW'REEHUW86DWFLWLQJ
:HDYHU86DWQFLWLQJ7KRPSVRQY8WDK             +RSW86DW
86.ULQJY0LVVRXUL86
                                                            :H DQDO\]H $SSHOODQW
V FODLP WKDW WKH UHWURDFWLYH
                                                                      DSSOLFDWLRQRIDPHQGHG5XOHYLRODWHGWKH([3RVW)DFWR
   7KH 6XSUHPH &RXUW KDV UHFRJQL]HG WKDW WKH GLVWLQFWLRQ       &ODXVHZLWKWKHVHSULQFLSOHVLQPLQG
EHWZHHQ VXEVWDQFH DQG SURFHGXUH PLJKW VRPHWLPHV SURYH
HOXVLYH0LOOHU86DW7KHJHQHUDOUXOHWKDWKDV           7KH TXHVWLRQ RI ZKHWKHU WKH UHWURDFWLYH DSSOLFDWLRQ RI
HPHUJHG IURP WKH FDVH ODZ KRZHYHU LV WKDW D FKDQJH LV     5XOH  LV VXEVWDQWLYH RU SURFHGXUDO KDV QRW EHHQ ZLGHO\
SURFHGXUDO DQG GRHV QRW DIIHFW D VXEVWDQWLDO ULJKW LI WKH   DGGUHVVHG LQ WKH FDVH ODZ  7KH 1LQWK &LUFXLW LQ DQ
FKDQJH GRHV QRW LQFUHDVH WKH SXQLVKPHQW QRU FKDQJH WKH       XQSXEOLVKHGGHFLVLRQKHOGWKDWWKHDPHQGPHQWVWR5XOH
LQJUHGLHQWVRIWKHRIIHQVHRUWKHXOWLPDWHIDFWVQHFHVVDU\WR
HVWDEOLVKJXLOW:HDYHU86DWQTXRWLQJ+RSW
Y 8WDK  86     7KXV LQ :HDYHU WKH         
&RXUW IRXQG WKDW )ORULGD
V UHYLVHG JRRGWLPH SURYLVLRQ                8QGHU WKH IRUPHU SURFHGXUH WKH LPSRVLWLRQ RI WKH GHDWK SHQDOW\ ZDV

YLRODWHGWKH([3RVW)DFWR&ODXVHEHFDXVHLWFRQVWULFWHGDQ           SUHVXPHG XQOHVV WKH MXU\ PDGH D UHFRPPHQGDWLRQ IRU PHUF\ 8QGHU WKH

LQPDWH
VRSSRUWXQLW\WRHDUQHDUO\UHOHDVHDQGWKHUHE\PDGH
                                                                      QHZ   SURFHGXUH   WKHUH   ZDV   D   VHSDUDWH   VHQWHQFLQJ   KHDULQJ   ZKHUH   WKH
                                                                      GHIHQGDQW FRXOG SUHVHQW PLWLJDWLQJ HYLGHQFH        7KH MXU\ ZRXOG UHQGHU DQ
PRUHRQHURXVWKHSXQLVKPHQWIRUFULPHVFRPPLWWHGEHIRUH              DGYLVRU\ YHUGLFW EDVHG XSRQ LWV SHUFHSWLRQ RI DJJUDYDWLQJ DQG PLWLJDWLQJ

LWVHQDFWPHQW86DW,Q0LOOHUWKH&RXUWKHOG         IDFWRUV LQ WKH FDVH DIWHU ZKLFK WKH &RXUW ZRXOG PDNH WKH ILQDO VHQWHQFLQJ
                                                                      GHWHUPLQDWLRQ    4ss079     86 DW 