Court Opinion

ID: 2969801
Source: CourtListenerOpinion
Date Created: 2015-09-22 15:57:29.353181+00
Date Added: 2024-06-11T11:40:57.561354
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
   3DOD]]RORY*RUF\FD                    1R                  3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

                                                                 (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

                  ,9&21&/86,21                                            )LOH 1DPH DS

  )RUWKHIRUHJRLQJUHDVRQVWKHMXGJPHQWRIWKH+RQRUDEOH
3DXO'%RUPDQRIWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH   81,7('67$7(6&28572)$33($/6
(DVWHUQ'LVWULFWRI0LFKLJDQLV$)),50('
                                                                            )257+(6,;7+&,5&8,7
                                                                              BBBBBBBBBBBBBBBBB

                                                              *(5$5' s26(3+ 3$/$==2/2         ;
                                                                     3HWLWLRQHU$SSHOODQW      
                                                                                                
                                                                                                  1R
                                                                        Y                      
                                                                                                 !
                                                                                                
                                                              '$9,' * *25&<&$2DNODQG 
                                                              &RXQW\3URVHFXWRU                
                                                                      5HVSRQGHQW$SSHOOHH 
                                                                                                
                                                                                               1
                                                                   $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                  IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
                                                                 1Rn3DXO'%RUPDQ'LVWULFWsXGJH
                                                                             $UJXHG2FWREHU
                                                                        'HFLGHGDQG)LOHG0DUFK
                                                               %HIRUH.(,7+%2**6DQG&2/(&LUFXLWsXGJHV
                                                                               BBBBBBBBBBBBBBBBB
                                                                                    &2816(/
                                                             $5*8('$UWKXUsD\:HLVV/$:2)),&(62)$57+85
                                                             s$<:(,66	$662&,$7(6)DUPLQJWRQ+LOOV0LFKLJDQ
                                                             IRU $SSHOODQW  0DULO\Q 'D\ 2$./$1' &2817<
                                                             3526(&8725j62)),&(3RQWLDF0LFKLJDQIRU$SSHOOHH
                                                             21 %5,()  $UWKXU sD\ :HLVV /$: 2)),&(6 2)
                                                             $57+85s$<:(,66	$662&,$7(6)DUPLQJWRQ+LOOV

                                                                                         
       3DOD]]RORY*RUF\FD                             1R        1R                              3DOD]]RORY*RUF\FD          

0LFKLJDQ IRU $SSHOODQW  0DULO\Q 'D\ 2$./$1'                          7KH IDFWV RI WKH FDVH EHIRUH XV DUH UHODWLYHO\
&2817< 3526(&8725j6 2)),&( 3RQWLDF 0LFKLJDQ                          LQGLVWLQJXLVKDEOHIURPWKHVLWXDWLRQSUHVHQWHGLQsRKQVRQ
IRU$SSHOOHH                                                             +HUHDVLQsRKQVRQWKHVWDWHREMHFWHGWRWKHDFFHSWDQFHRI
                                                                            3HWLWLRQHUjVSOHDDQGDWDOOWLPHVZLVKHGWRSURFHHGZLWKWKH
                       BBBBBBBBBBBBBBBBB                                    &6& , FKDUJH  3HWLWLRQHU KDG QRWLFH WKDW WKH VWDWH PLJKW
                                                                            DSSHDOIURPWKHILQDOMXGJPHQW\HWKHFKRVHWRJRIRUZDUG
                           23,1,21                                          ZLWKKLVSOHD7KHUHGXFWLRQRIWKHFKDUJHDQGDFFHSWDQFHRI
                       BBBBBBBBBBBBBBBBB                                    3HWLWLRQHUjVSOHDWR&6&,,ZDVQRWDQmLPSOLHGDFTXLWWDOlRQ
                                                                            WKHJUHDWHUFKDUJHQRUZDV3HWLWLRQHUH[SRVHGWRFRQYLFWLRQ
   '$021s.(,7+&LUFXLWsXGJH3HWLWLRQHU$SSHOODQW                     RQWKHJUHDWHUFKDUJH0RUHRYHUWKHVWDWHKDVQRWKDGWKH
*HUDUG sRVHSK 3DOD]]ROR m3HWLWLRQHUl ZDV LQGLFWHG LQ                mRSSRUWXQLW\WRPDUVKDOLWVHYLGHQFHDQGUHVRXUFHVPRUHWKDQ
0LFKLJDQRQDVLQJOHFKDUJHRI)LUVW'HJUHH&ULPLQDO6H[XDO                 RQFHRUKRQH>WKH@SUHVHQWDWLRQRILWVFDVHWKURXJKDWULDOl
&RQGXFW m&6& ,l  7KH WULDO FRXUW JUDQWHG 3HWLWLRQHUjV            sRKQVRQ86DW$VQRWHGE\WKHsRKQVRQ&RXUW
PRWLRQ WR UHGXFH WKH FKDUJH WR 6HFRQG'HJUHH &ULPLQDO                WKHVWDWHLVHQWLWOHGmWRRQHIXOODQGIDLURSSRUWXQLW\WRFRQYLFW
6H[XDO&RQGXFWm&6&,,lDQGHQWHUHG3HWLWLRQHUjVSOHDRI                 WKRVHZKRKDYHYLRODWHGLWVODZVl,GDW
QRORFRQWHQGHUHRYHUWKHVWDWHjVREMHFWLRQ7KHUHDIWHUWKH
VWDWHVXFFHVVIXOO\DSSHDOHGWKHWULDOFRXUWjVRUGHUUHGXFLQJWKH               6LPLODUO\ 3HWLWLRQHU KDV QRW EHHQ VXEMHFWHG WR PXOWLSOH
FKDUJH DQG WKH 0LFKLJDQ &RXUW RI $SSHDOV UHPDQGHG IRU              SXQLVKPHQWV7KHWULDOFRXUWjVUHGXFWLRQRIWKH&6&,FKDUJH
UHLQVWDWHPHQW RI WKH &6& , FKDUJH  $IWHU H[KDXVWLQJ VWDWH         mGLGPRUHWKDQVLPSO\SUHYHQWWKHLPSRVLWLRQRIFXPXODWLYH
DSSHDOV 3HWLWLRQHU VRXJKW UHOLHI SXUVXDQW WR  86&             SXQLVKPHQWV LW KDOWHG FRPSOHWHO\ WKH SURFHHGLQJV WKDW
  LQ WKH GLVWULFW FRXUW EHORZ  +H DSSHDOV IURP WKH        XOWLPDWHO\ZRXOGKDYHOHGWRDYHUGLFWRIJXLOWRULQQRFHQFHl
MXGJPHQW GHQ\LQJ KLV SHWLWLRQ IRU ZULW RI KDEHDV FRUSXV            RQWKH&6&,FKDUJHsRKQVRQ86DW7KH
UDLVLQJ WKH VLQJOH LVVXH RI ZKHWKHU WKH VWDWHjV DSSHDO DQG         MHRSDUG\WKDWDWWDFKHGWRWKH&6&,,FKDUJHGRHVQRWEDUWKH
VXEVHTXHQWSURVHFXWLRQRI3HWLWLRQHURQWKH&6&,FKDUJHDUH                VWDWH IURP SURVHFXWLQJ 3HWLWLRQHU RQ WKH &6& , FKDUJH
EDUUHGE\WKH'RXEOHsHRSDUG\&ODXVH)RUWKHUHDVRQVWKDW                 :KHWKHULQWKHHYHQW3HWLWLRQHULVFRQYLFWHGRI&6&, KH
IROORZZHDIILUPWKHMXGJPHQWRIWKHGLVWULFWFRXUW                      PD\EHSXQLVKHGIRUWKHVDPHFRQGXFWXQGHUERWK&6&,DQG
                                                                            ,,SXUVXDQWWRVWDWHODZLVDPDWWHUZHQHFHVVDULO\OHDYHWRWKH
                        ,%$&.*5281'                                      VWDWHFRXUWVWRGHFLGH
  3HWLWLRQHU ZDV FKDUJHG ZLWK &6& , LQ 2DNODQG &RXQW\                 $FFRUGLQJO\ZHFRQFOXGHWKDWQHLWKHUWKHVWDWHjVDSSHDOQRU
&LUFXLW&RXUWDULVLQJIURPWKHVH[XDODVVDXOWRIKLVDGRSWHG               LWVSURVHFXWLRQRI3HWLWLRQHURQWKH&6&,FKDUJHYLRODWHWKH
GDXJKWHU  $W WKH SUHOLPLQDU\ H[DPLQDWLRQ KLV DGRSWHG               'RXEOHsHRSDUG\&ODXVHRIWKH8QLWHG6WDWHV&RQVWLWXWLRQ
GDXJKWHUWHVWLILHGWKDW3HWLWLRQHUFDPHLQWRKHUURRPDWQLJKW

                                                                                
                                                                                 :H UHMHFW 3HWLWLRQHUjV FRQWHQWLRQ WKDW WKH SULQFLSOHV DUWLFXODWHG LQ
    
      0LFK &RPS /DZV $QQ  E :HVW                6HFWLRQ   sRKQVRQ DUH LQDSSOLFDEOH EHFDXVH ERWK &6& , DQG ,, ZHUH QRW FKDUJHG LQ
E SURYLGHV LQ SHUWLQHQW SDUW DV IROORZV                           WKH LQIRUPDWLRQ 2Q WKH IDFWV SUHVHQWHG KHUH WKDW LV D GLVWLQFWLRQ ZLWKRXW
    $ SHUVRQ LV JXLOW\ RI FULPLQDO VH[XDO FRQGXFW LQ WKH ILUVW GHJUHH       D GLIIHUHQFH 7KH VWDWH FKDUJHG 3HWLWLRQHU ZLWK &6& , LQ WKH ILUVW
    LI KH RU VKH HQJDJHV LQ VH[XDO SHQHWUDWLRQ ZLWK DQRWKHU SHUVRQ          LQIRUPDWLRQ DQG VHHNV WR SURFHHG ZLWK WKDW FKDUJH 7KLV LV VLPSO\ QRW D
    DQG LI>W@KDW RWKHU SHUVRQ LV XQGHU  \HDUV RI DJH                  VLWXDWLRQ DV 3HWLWLRQHU FRQWHQGV ZKHUH WKH VWDWH LV DWWHPSWLQJ WR FKDUJH
0LFK &RPS /DZV $QQ  ED                                     VHSDUDWH RIIHQVHV LQ VXFFHVVLYH SURVHFXWLRQV EDVHG RQ WKH VDPH FRQGXFW
    3DOD]]RORY*RUF\FD                             1R       1R                             3DOD]]RORY*RUF\FD            

PDQVODXJKWHUDJJUDYDWHGUREEHU\DQGJUDQGWKHIW6HHLGDW            DQGWRXFKHGKHUYDJLQDRYHUKHUXQGHUZHDUZLWKKLVILQJHUV
  7KH GHIHQGDQW VXEVHTXHQWO\ SOHDGHG JXLOW\ RYHU WKH        +HUWHVWLPRQ\GLGQRWLQGLFDWHDQ\SHQHWUDWLRQ$OVRDWWKH
VWDWHjVREMHFWLRQWRWKHLQYROXQWDU\PDQVODXJKWHUDQGJUDQG             SUHOLPLQDU\ H[DPLQDWLRQ WKH VWDWH LQWURGXFHG 3HWLWLRQHUjV
WKHIW FKDUJHV  6HH LG  +H WKHQ PRYHG WR GLVPLVV WKH         FRQIHVVLRQ LQ ZKLFK 3HWLWLRQHU DGPLWWHG WR GLJLWDOO\
UHPDLQLQJ FKDUJHV DUJXLQJ WKDW IXUWKHU SURVHFXWLRQ RQ WKH        SHQHWUDWLQJWKHYLFWLPDQGKHUVLVWHURQXQVSHFLILHGRFFDVLRQV
WZR JUHDWHU FKDUJHV ZRXOG YLRODWH KLV ULJKW DJDLQVW GRXEOH
MHRSDUG\  6HH LG  7KH WULDO FRXUW JUDQWHG WKH GHIHQGDQWjV       3HWLWLRQHUZDVERXQGRYHUE\WKHWULDOFRXUWRQWKHFKDUJH
PRWLRQDQGWKH2KLR&RXUWRI$SSHDOVDQG2KLR6XSUHPH                   RI &6& ,  3HWLWLRQHU PRYHG WR TXDVK WKH LQIRUPDWLRQ RU
&RXUWDIILUPHG6HHLG7KH8QLWHG6WDWHV6XSUHPH&RXUW                UHGXFH WKH FKDUJH DUJXLQJ WKDW XQGHU 0LFKLJDQjV FRUSXV
UHYHUVHGKROGLQJWKDWWKH'RXEOHsHRSDUG\&ODXVHGLGQRWEDU            GHOLFWL UXOH WKH VWDWH FRXOG QRW XVH D FULPLQDO GHIHQGDQWjV
WKHVWDWHIURPFRQWLQXLQJLWVSURVHFXWLRQRQWKHWZRJUHDWHU             FRQIHVVLRQ XQWLO WKH VWDWH KDG LQWURGXFHG QRQFRQIHVVLRQ
FKDUJHV6HHLGDW                                                HYLGHQFHVXIILFLHQWWRHVWDEOLVKHYHU\HOHPHQWRIWKHFULPH
                                                                         FKDUJHG+HDUJXHGWKDWKLVFRQIHVVLRQFRXOGQRWEHXVHGWR
  7KH&RXUWLQsRKQVRQILUVWDGGUHVVHGWKHLVVXHRIVXFFHVVLYH           HVWDEOLVKSUREDEOHFDXVHWREHOLHYH3HWLWLRQHUFRPPLWWHG&6&
SURVHFXWLRQV  7KH &RXUW QRWHG WKDW WKH GHIHQGDQW ZDV QRW       ,VLQFHSHQHWUDWLRQLVDQHOHPHQWRI&6&,
mH[SRVHGWRFRQYLFWLRQlRQWKHJUHDWHURIIHQVHVmQRUKD>G@
WKH 6WDWH KDG WKH RSSRUWXQLW\ WR PDUVKDO LWV HYLGHQFH DQG         7KHVWDWHWULDOFRXUWILUVWQRWHGWKDWWKHFRUSXVGHOLFWLUXOH
UHVRXUFHVPRUHWKDQRQFHRU WRKRQHLWVSUHVHQWDWLRQRILWV             UHTXLUHVWKDWWKHVWDWHLQWURGXFHHYLGHQFHRIWKHmRFFXUUHQFH
FDVHWKURXJKDWULDOl,G7KH&RXUWREVHUYHGWKDWWKHFDVH             RIDVSHFLILFLQMXU\lEXWQHHGQRWHVWDEOLVKHYHU\HOHPHQWRI
SUHVHQWHGmQRQHRIWKHJRYHUQPHQWDORYHUUHDFKLQJWKDWGRXEOH             WKH FULPH FKDUJHG  7KH FRXUW FRQFOXGHG KRZHYHU WKDW
MHRSDUG\LVVXSSRVHGWRSUHYHQWlDQGFRQFOXGHGWKDWmHQGLQJ             SHQHWUDWLRQLVWKHmVSHFLILFLQMXU\lRI&6&,DQGWKXVLVSDUW
SURVHFXWLRQQRZZRXOGGHQ\WKH>V@WDWHLWVULJKWWRRQHIXOO             RIWKHFRUSXVGHOLFWLRI&6&,&RQVHTXHQWO\WKHWULDOFRXUW
DQGIDLURSSRUWXQLW\WRFRQYLFWWKRVHZKRKDYHYLRODWHGLWV              KHOG WKDW WKH VWDWH FRXOG QRW XVH 3HWLWLRQHUjV FRQIHVVLRQ WR
ODZVl,GDWFLWLQJ$UL]RQDY:DVKLQJWRQ86               HVWDEOLVKWKHFRUSXVGHOLFWLRI&6&,DQGJUDQWHG3HWLWLRQHUjV
                                                        PRWLRQWRUHGXFHWKHFKDUJHWR&6&,,
   6HFRQGO\ WKH 6XSUHPH &RXUW DGGUHVVHG WKH LVVXH RI                2QsXQH3HWLWLRQHUSOHGQRORFRQWHQGHUHWR&6&
PXOWLSOHSXQLVKPHQWV,GDW7KH&RXUWFRQFOXGHG              ,,  3ULRU WR WKH SOHD WKH VWDWH SURVHFXWRU QRWLILHG WKH WULDO
WKDWWKH'RXEOHsHRSDUG\&ODXVHjVSURWHFWLRQIURPPXOWLSOH               FRXUW DQG 3HWLWLRQHU WKDW WKH VWDWH PLJKW DSSHDO WKH WULDO
SXQLVKPHQWVIRUWKHVDPHFULPHZDVQRWLPSOLFDWHGE\WKH                 FRXUWjVUHGXFWLRQRIWKHFKDUJHIURP&6&,WR&6&,,7KLV
VWDWHjV SURVHFXWLRQ RI WKH GHIHQGDQW RQ UHPDLQLQJ JUHDWHU         DSSDUHQWO\WRRN3HWLWLRQHUjVFRXQVHOE\VXUSULVH+HVWDWHG
RIIHQVHVDIWHUKHKDGSOHDGHGJXLOW\WRWKHOHVVHURIIHQVHV6HH        WKDWKHZDVQRWDZDUHWKDWWKHUHPLJKWEHDQDSSHDODQGWKDW
LG7KH&RXUWQRWHGWKDWXQWLOWKHGHIHQGDQWZDVFRQYLFWHGRI          KH GLG QRW ZDQW KLV FOLHQW WR FRQVWUXFWLYHO\ FRQVHQW WR DQ
WKH JUHDWHU RIIHQVHV KH ZDV QRW VXEMHFWHG WR PXOWLSOH
SXQLVKPHQWV  6HH LG  7KH &RXUW REVHUYHG WKDW mWKH WULDO
FRXUW LQ WKH HYHQW RI D JXLOW\ YHUGLFW RQ WKH PRUH VHULRXV       
RIIHQVHVZ>RXOG@KDYHWRFRQIURQWWKHTXHVWLRQRIFXPXODWLYH                 0LFK &RPS /DZV $QQ  F :HVW                 6HFWLRQ
                                                                         F SURYLGHV LQ SHUWLQHQW SDUW DV IROORZV
SXQLVKPHQWVDVDPDWWHURIVWDWHODZl,G                                  $ SHUVRQ LV JXLOW\ RI FULPLQDO VH[XDO FRQGXFW LQ WKH VHFRQG
                                                                             GHJUHH LI WKH SHUVRQ HQJDJHV LQ VH[XDO FRQWDFW ZLWK DQRWKHU
                                                                             SHUVRQ DQG LI>W@KDW RWKHU SHUVRQ LV XQGHU  \HDUV RI DJH
                                                                         0LFK &RPS /DZV $QQ  FD
       3DOD]]RORY*RUF\FD                              1R        1R                             3DOD]]RORY*RUF\FD         

DSSHDOE\HQWHULQJDSOHD,QUHVSRQVHWKHVWDWHQRWHGWKDWLW             WKH VWDWH IURP FRPSOHWLQJ LWV SURVHFXWLRQl RQ WKH &6& ,
FRXOGWDNHDQDSSHDOIURPWKHILQDOMXGJPHQWDQGGLGQRW                   FKDUJH2KLRYsRKQVRQ86
IHHO WKDW LQWHUORFXWRU\ DSSHDO ZDV DSSURSULDWH  7KH VWDWH
SURVHFXWRUVWDWHGWKDWm>W@KH>3HWLWLRQHU@LVQRWZDLYLQJDQ\                  0RUHRYHU WKH FKDUJHV LQ%URZQ ZHUH JUHDWHU DQG OHVVHU
FODLPV RU ULJKWV E\ WHQGHULQJ D SOHD WRGD\l  3HWLWLRQHUjV          LQFOXGHG RIIHQVHV DQG WKXV WKH mVDPH RIIHQVHl IRU GRXEOH
FRXQVHOVWDWHGWKDWKHZRXOGmWDNHWKH3URVHFXWRUjVVWDWHPHQW                MHRSDUG\ SXUSRVHV  7KLV &RXUW GHWHUPLQHV ZKHWKHU WZR
WKDW ZHjUH QRW ZDLYLQJ DQ\WKLQJ E\ SURFHHGLQJ                          FULPHV FRQVWLWXWH WKH VDPH RIIHQVH IRU GRXEOH MHRSDUG\
WRGD\>@LQFOXGLQJGRXEOHMHRSDUG\l7KHWULDOFRXUWQRWHG                SXUSRVHVE\DSSOLFDWLRQRIWKHVDPHHOHPHQWWHVWRULJLQDOO\VHW
WKHVWDWHjVREMHFWLRQDQGRUGHUHGHQWU\RI3HWLWLRQHUjVQROR                IRUWK LQ %ORFNEXUJHU Y 8QLWHG 6WDWHV  86  
FRQWHQGHUHSOHD                                                               6HH 8QLWHG 6WDWHV Y 'L[RQ  86  
                                                                             0XUUY8QLWHG6WDWHV)GWK&LU
   2QsXO\WKHWULDOFRXUWVHQWHQFHG3HWLWLRQHUWRRQH             7KLVWHVWmLQTXLUHVZKHWKHUHDFKRIIHQVHFRQWDLQVDQ
\HDULQFDUFHUDWLRQWKUHH\HDUVSUREDWLRQZLWKWKHEDODQFHRI               HOHPHQWQRWFRQWDLQHGLQWKHRWKHULIQRWWKH\DUHWKHVDPH
MDLO VHQWHQFH VXVSHQGHG DIWHU VL[ PRQWKV VR WKDW 3HWLWLRQHU          RIIHQVHDQGGRXEOHMHRSDUG\EDUVDGGLWLRQDOSXQLVKPHQWDQG
FRXOGHQWHUWKHHOHFWURQLFPRQLWRULQJSURJUDP$JDLQDWWKH                 VXFFHVVLYH SURVHFXWLRQl 'L[RQ  86 DW 
VHQWHQFLQJKHDULQJWKHVWDWHJDYHQRWLFHWKDWLWPLJKWDSSHDO               %ORFNEXUJHU86DW8QGHUWKLVWHVW&6&,DQG,,
WKH WULDO FRXUWjV RUGHU UHGXFLQJ WKH FKDUJH DQG QRWHG LWV          DUH FOHDUO\ VHSDUDWH RIIHQVHV  7KHUHIRUH 3HWLWLRQHUjV
REMHFWLRQWRWKHSOHDDQGVHQWHQFH                                          FRQYLFWLRQ RQ WKH &6& ,, FKDUJH GLG QRW FUHDWH D GRXEOH
                                                                             MHRSDUG\EDUWRUHLQVWDWHPHQWRIWKH&6&,FKDUJHWKDWZDV
  2Q 6HSWHPEHU   WKH VWDWH ILOHG D IDXOW\ FODLP RI          FKDUJHGLQWKHRULJLQDOLQGLFWPHQW
DSSHDO ZKLFK  ZDV GLVPLVVHG E\ WKH 0LFKLJDQ &RXUW RI
$SSHDOV2Q6HSWHPEHUWKHVWDWHILOHGDGHOD\HG                    )XUWKHU VXSSRUW IRU WKLV FRQFOXVLRQ LV IRXQG LQ 2KLR Y
DSSOLFDWLRQIRUOHDYHWRDSSHDOZKLFKWKH0LFKLJDQ&RXUWRI                 sRKQVRQ LQ ZKLFK WKH 6XSUHPH &RXUW FRQFOXGHG WKDW WKH
$SSHDOVJUDQWHGLQDQRUGHUGDWHG'HFHPEHU                         'RXEOH sHRSDUG\ &ODXVH GRHV QRW SURKLELW WKH VWDWH IURP
                                                                             SURVHFXWLQJDGHIHQGDQWZKRKDVSOHDGHGJXLOW\WRVRPHRI
                                                                             WKHFKDUJHVRIDQLQGLFWPHQWRQWKHUHPDLQLQJFKDUJHV
                                                                             86     7KH GHIHQGDQW LQ sRKQVRQ ZDV
                                                                            LQGLFWHG RQ RQH FRXQW HDFK RI PXUGHU LQYROXQWDU\
     0LFKLJDQ &RPS /DZV $QQ  H :HVW  SURYLGHV
    >7@KH SHRSOH RI >0LFKLJDQ@ PD\ WDNH DQ DSSHDO E\ OHDYH LQ D
    FULPLQDO FDVH LI WKH SURWHFWLRQ DJDLQVW GRXEOH MHRSDUG\ XQGHU
    VHFWLRQ  RI DUWLFOH , RI WKH VWDWH FRQVWLWXWLRQ RI  DQG                
                                                                                   7KH FULPH RI &6& , UHTXLUHV SURRI RI mVH[XDO SHQHWUDWLRQl 0LFK
    DPHQGPHQW 9 RI WKH FRQVWLWXWLRQ RI WKH 8QLWHG 6WDWHV ZRXOG QRW
                                                                             &RPS /DZV $QQ  E :HVW  6H[XDO SHQHWUDWLRQ FDQ EH
    EDU IXUWKHU SURFHHGLQJV DJDLQVW WKH GHIHQGDQW IURP>D@ ILQDO
                                                                             IRU DQ\ SXUSRVH 6HH 0LFK &RPS /DZV $QQ  DO :HVW 
    RUGHU RU MXGJPHQW EDVHG XSRQ D GHIHQGDQWjV SOHD RI JXLOW\ RU
                                                                             /HPRQV  1:G DW  &6& ,, UHTXLUHV WKH SURVHFXWRU WR SURYH
    QROR FRQWHQGHUH
                                                                             mVH[XDO FRQWDFWl 0LFK &RPS /DZV $QQ  F :HVW 
                                                                             /HPRQV  1:G DW  6H[XDO FRQWDFW LV GHILQHG DV WRXFKLQJ WKDW
    
     8QGHU 0LFKLJDQ ODZ WKH VWDWH FDQ DSSHDO IURP D ILQDO MXGJPHQW          mFDQ UHDVRQDEO\ EH FRQVWUXHG DV EHLQJ IRU WKH SXUSRVH RI VH[XDO DURXVDO
EDVHG RQ D QROR FRQWHQGHUH SOHD E\ DSSOLFDWLRQ IRU OHDYH WR DSSHDO 6HH      RU JUDWLILFDWLRQl 0LFK &RPS /DZV $QQ  DN :HVW 
0LFK &RPS /DZV $QQ  H :HVW  %HFDXVH WKH                 DFFRUG /HPRQV  1:G DW  7KXV &6& , DQG ,, DUH VHSDUDWH
0LFKLJDQ &RXUW RI $SSHDOV ODFNHG MXULVGLFWLRQ WR KHDU WKH VWDWHjV FODLP RI   RIIHQVHV VLQFH &6& , UHTXLUHV SURRI RI SHQHWUDWLRQ ZKLOH &6& ,, UHTXLUHV
DSSHDO VHH 0LFK &W 5 $E :HVW  WKDW FRXUW              SURRI RI DQ LQWHQW WR VHHN VH[XDO DURXVDO RU JUDWLILFDWLRQ DQG QHLWKHU
GLVPLVVHG                                                                   HOHPHQW LV FRPPRQ WR ERWK GHJUHHV &I /HPRQV  1:G DW 
    3DOD]]RORY*RUF\FD                              1R       1R                              3DOD]]RORY*RUF\FD            

VWDWHPHQWVLVODUJHO\LUUHOHYDQWDQGGLVWUDFWLQJWRWKHLVVXHDW             2QUHYLHZWKH0LFKLJDQ&RXUWRI$SSHDOVKHOGWKDWWKH
KDQG                                                              WULDOFRXUWHUUHGLQILQGLQJWKDW3HWLWLRQHUjVFRQIHVVLRQZDV
                                                                          LQDGPLVVLEOHDQGLQTXDVKLQJWKH&6&,FKDUJH7KHFRXUW
   1H[W 3HWLWLRQHU FRQWHQGV WKDW EHFDXVH GRXEOH MHRSDUG\          QRWHG WKDW WKH SXUSRVH RI WKH FRUSXV GHOLFWL UXOH ZDV WR
DWWDFKHGWRWKH&6&,,FKDUJHZKHQKHZDVVHQWHQFHGIRUWKDW              SUHYHQWDGHIHQGDQWjVFRQIHVVLRQIURPEHLQJXVHGWRFRQYLFW
RIIHQVHWKHVWDWHLVEDUUHGIURPSURVHFXWLQJKLPRQWKH&6&              KLPRIDFULPHWKDWQHYHURFFXUUHG7KHFRXUWQRWHGWKDWWKH
,FKDUJH3HWLWLRQHUUHOLHVIRUWKLVSURSRVLWLRQRQ%URZQY             YLFWLPjV WHVWLPRQ\ DW WKH SUHOLPLQDU\ H[DPLQDWLRQ ZDV
2KLR863HWLWLRQHUjVUHOLDQFHKRZHYHULV            VXIILFLHQW WR HVWDEOLVK D VSHFLILF LQMXU\ DQG WKHUHIRUH
PLVSODFHG                                                                3HWLWLRQHUjVFRQIHVVLRQFRXOGEHDGPLWWHGWRHOHYDWHWKHFULPH
                                                                          WRDKLJKHUGHJUHH
  ,Q%URZQDULVLQJIURPKLVWKHIWRIDQDXWRPRELOHWKHVWDWH
FKDUJHGWKHGHIHQGDQWZLWKMR\ULGLQJLHWDNLQJRURSHUDWLQJ              $GGLWLRQDOO\ WKH DSSHOODWH FRXUW UHMHFWHG 3HWLWLRQHUjV
DYHKLFOHZLWKRXWWKHRZQHUjVFRQVHQW86DW7KH             DUJXPHQWWKDWWKHDSSHDOVKRXOGEHGLVPLVVHGEHFDXVHIXUWKHU
GHIHQGDQW SOHDGHG JXLOW\ DQG ZDV VHQWHQFHG  6HH LG             SURVHFXWLRQZRXOGYLRODWHWKH'RXEOHsHRSDUG\&ODXVHVRI
7KHUHDIWHU WKH GHIHQGDQW ZDV LQGLFWHG RQ FKDUJHV RI DXWR         $UW,  RIWKH0LFKLJDQ&RQVWLWXWLRQRIDQGWKH
WKHIWDQGMR\ULGLQJEDVHGRQWKHVDPHWKHIW6HHLGDW          )LIWK$PHQGPHQWRIWKH8QLWHG6WDWHV&RQVWLWXWLRQ&LWLQJ
7KH 6XSUHPH &RXUW KHOG WKDW WKH VHFRQG SURVHFXWLRQ ZDV            0LFKLJDQ SUHFHGHQW WKH FRXUW KHOG WKDW ZKHQ D SOHD DQG
EDUUHGE\WKH'RXEOHsHRSDUG\&ODXVHVLQFHWKHGHIHQGDQW                 VHQWHQFH RFFXU RQ D UHGXFHG FKDUJH DQG WKH EDVLV IRU WKH
KDG SUHYLRXVO\ EHHQ FRQYLFWHG RI MR\ULGLQJ ZKLFK ZDV D           UHGXFWLRQ LV ODWHU RYHUWXUQHG RQ DSSHDO MHRSDUG\ GRHV QRW
OHVVHU LQFOXGHG RIIHQVH RI DXWR WKHIW 6HH LG DW   7KH   DWWDFK7KHDSSHOODWHFRXUWUHYHUVHGWKHWULDOFRXUWUHPDQGHG
&RXUWQRWHGWKDWWKHGRXEOHMHRSDUG\EDUDJDLQVWVXFFHVVLYH               WKHFDVHDQGUHLQVWDWHGWKHRULJLQDOFKDUJHRI&6&,7KHWULDO
SURVHFXWLRQVVHUYHVmDFRQVWLWXWLRQDOSROLF\RIILQDOLW\IRUWKH          FRXUW VXEVHTXHQWO\ YDFDWHG 3HWLWLRQHUjV FRQYLFWLRQ DQG
GHIHQGDQWjV EHQHILWl DQG SURWHFWV WKH GHIHQGDQW IURP               VHQWHQFHRQWKH&6&,,FKDUJH 
SURVHFXWRULDO RYHUUHDFKLQJ  ,G DW  TXRWLQJ 8QLWHG
6WDWHVYsRUQ86                                  7KH3HWLWLRQHUILOHGDQDSSOLFDWLRQIRUOHDYHWRDSSHDOLQWKH
                                                                          0LFKLJDQ6XSUHPH&RXUWDJDLQDOOHJLQJDGRXEOHMHRSDUG\
   7KHIDFWVSUHVHQWHGLQ%URZQDUHFOHDUO\DQGLPPHGLDWHO\               YLRODWLRQ2Q0D\WKDWFRXUWGHQLHG3HWLWLRQHUjV
GLVWLQJXLVKDEOH IURP WKRVH SUHVHQWHG KHUH  8QOLNH WKH             DSSOLFDWLRQ3HWLWLRQHUILOHGKLVSHWLWLRQIRUZULWRIKDEHDV
VLWXDWLRQ LQ %URZQ WKH VWDWH GLG QRW VHHN WR SURVHFXWH          FRUSXVRQsXO\UDLVLQJDFODLPRIGRXEOHMHRSDUG\
3HWLWLRQHU RQ FKDUJHV RI &6& , DQG ,, LQ WZR VHSDUDWH          2QsXO\WKHGLVWULFWFRXUWLVVXHGDQRUGHUGHQ\LQJ
VXFFHVVLYHSURFHHGLQJV5DWKHUWKHVWDWHFKDUJHG3HWLWLRQHU             3HWLWLRQHUjVSHWLWLRQmIRUWKHUHDVRQVVWDWHGRQWKHUHFRUGl%\
ZLWK &6& , RQO\ DQG LQGHHG QHYHU ILOHG DQ LQIRUPDWLRQ         WKH VDPH RUGHU WKH GLVWULFW FRXUW LVVXHG D &HUWLILFDWH RI
FKDUJLQJ&6&,,7KH6XSUHPH&RXUWjVGHFLVLRQLQ%URZQ                   $SSHDODELOLW\UHJDUGLQJWKHGRXEOHMHRSDUG\LVVXH
UHIOHFWV WKH QHHG WR SUHVHUYH WKH ILQDOLW\ RI MXGJPHQWV LQ
FULPLQDO SURVHFXWLRQV DQG WR SURWHFW WKH GHIHQGDQW IURP
SURVHFXWRULDO RYHUUHDFKLQJ   7KH VWDWHjV DFWLRQV KHUH                
KRZHYHUGRQRWJLYHULVHWRWKHVHFRQFHUQV7KHmVHFRQGl                      8QGHU 0LFKLJDQ ODZ RQFH D SOHD LV YDFDWHG WKH SURVHFXWLRQ PD\

SURVHFXWLRQRI3HWLWLRQHUZDVWKHGLUHFWDQGIRUHVHHDEOHUHVXOW           VXEVHTXHQWO\ EULQJ DQ\ FKDUJH WKDW FRXOG KDYH EHHQ EURXJKW SULRU WR WKH
                                                                          SOHD $00 0LFK &W 5  :HVW  m,I D SOHD LV ZLWKGUDZQ E\ WKH
RI3HWLWLRQHUjV PRWLRQWRUHGXFHWKHFKDUJHDQGKHFDQQRW               GHIHQGDQW RU YDFDWHG E\ WKH WULDO FRXUW RU DQ DSSHOODWH FRXUW WKH FDVH PD\
QRZmXVHWKH'RXEOHsHRSDUG\&ODXVHDVDVZRUGWRSUHYHQW                 SURFHHG WR WULDO RQ DQ\ FKDUJHV WKDW KDG EHHQ EURXJKW RU WKDW FRXOG KDYH
                                                                          EHHQ EURXJKW DJDLQVW WKH GHIHQGDQW LI WKH SOHD KDG QRW EHHQ HQWHUHGl
      3DOD]]RORY*RUF\FD                          1R       1R                          3DOD]]RORY*RUF\FD         

                ,,67$1'$5'2)5(9,(:                                  FODLPVRUULJKWVE\WHQGHULQJDSOHDWRGD\EXW,WKRXJKW
                                                                         WKDWKHVKRXOGNQRZWKDWLWZDVDSRVVLELOLW\
   7KLV&RXUWUHYLHZVGHQRYRWKHOHJDOFRQFOXVLRQVLQYROYHG
LQWKHGLVWULFWFRXUWjVGHFLVLRQWRGHQ\WKHZULWXQGHU        3HWLWLRQHU FRQWHQGV WKDW KH SURIIHUHG KLV SOHD GXH WR KLV
DQGUHYLHZVIRUFOHDUHUURULWVILQGLQJVRIIDFW6HH%DUNHUY       DVVXPSWLRQWKDWWKHSURVHFXWRUZDVSURPLVLQJWKDWKHZRXOG
<XNLQV)GWK&LU                            EH IUHH IURP D VHFRQG SURVHFXWLRQ HYHQ LI WKH VWDWH ZDV
                                                                       VXFFHVVIXOLQLWVDSSHDO
  %HFDXVH3HWLWLRQHUILOHGKLVKDEHDVSHWLWLRQDIWHUWKH
$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\$FWm$('3$l                   ,Q UHVSRQVH WKH VWDWH FRQWHQGV WKDW WKH SURVHFXWRUjV
DSSOLHV WR WKLV FDVH  7KH $('3$ DPHQGHG  86&            VWDWHPHQWVVLPSO\FRQYH\HGWKDW3HWLWLRQHUZDVQRWJLYLQJXS
GZKLFKQRZSURYLGHVLQUHOHYDQWSDUW                       DQ\ULJKWVE\SOHDGLQJWRWKH&6&,,FKDUJHLQFOXGLQJGRXEOH
                                                                       MHRSDUG\SURWHFWLRQV7KHVWDWHDUJXHVWKDWWKHSURVHFXWRUZDV
    >$@QDSSOLFDWLRQIRUZULWRIKDEHDVFRUSXVRQEHKDOIRID          QRW DVVXULQJ 3HWLWLRQHU WKDW KH ZRXOG KDYH D PHULWRULRXV
    SHUVRQLQFXVWRG\SXUVXDQWWRWKHMXGJPHQWRIWKHVWDWH            GRXEOHMHRSDUG\DUJXPHQWEXWUDWKHUWKDWKHZDVQRWZDLYLQJ
    FRXUWVKDOOQRWEHJUDQWHGZLWKUHVSHFWWRDQ\FODLPWKDW          DGRXEOHMHRSDUG\GHIHQVH7KHVWDWHQRWHVWKDWLI3HWLWLRQHU
    ZDVDGMXGLFDWHGRQWKHPHULWVLQ6WDWHFRXUWSURFHHGLQJV           LVFRUUHFWWKDWWKHSURVHFXWRUjVVWDWHPHQWVSURPLVHG3HWLWLRQHU
    XQOHVVWKHDGMXGLFDWLRQRIWKHFODLP                               D PHULWRULRXV GRXEOH MHRSDUG\ GHIHQVH LQ WKH HYHQW RI DQ
      UHVXOWHGLQDGHFLVLRQWKDWZDVFRQWUDU\WRRU             DSSHDOLWZRXOGKDYHPDGHQRVHQVHIRUWKHSURVHFXWLRQWR
      LQYROYHGDQXQUHDVRQDEOH DSSOLFDWLRQRIFOHDUO\                JLYHQRWLFHRIRUIRUWKDWPDWWHUWRDWWHPSWVXFKDQDSSHDO
      HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH
      6XSUHPH&RXUWRIWKH8QLWHG6WDWHV                                 &OHDUO\ E\ WHQGHULQJ KLV JXLOW\ SOHD 3HWLWLRQHU ZDV QRW
       UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ         ZDLYLQJKLVULJKWWREHIUHHIURPPXOWLSOHSURVHFXWLRQVDQG
      XQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRI              FXPXODWLYH SXQLVKPHQW LQ YLRODWLRQ RI GRXEOH MHRSDUG\
      WKHHYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ            SULQFLSOHV+RZHYHUZHGLVDJUHHZLWK3HWLWLRQHUjVDVVHUWLRQ
                                                                       WKDWWKHSURVHFXWRUjVVWDWHPHQWVJUDQWHGKLPVRPHWKLQJPRUH
86&G:HVW                                       WKDQ WKLV EDVLF DVVXUDQFH  5DWKHU ZH EHOLHYH WKDW WKH
                                                                       SURVHFXWRUjV VWDWHPHQWV FDQ EH LQWHUSUHWHG RQO\ DV DQ
  7KH6XSUHPH&RXUWLQ:LOOLDPVY7D\ORU86              DVVXUDQFH WKDW 3HWLWLRQHU ZDV QRW ZDLYLQJ DQ\ ULJKWV E\
BBB  6&W    FODULILHG WKH GLVWLQFWLRQ    SURIIHULQJ KLV SOHD WR &6& ,,  3HWLWLRQHU GLG QRW ZDLYH D
EHWZHHQ D GHFLVLRQ mFRQWUDU\ WRl DQG DQ mXQUHDVRQDEOH          GRXEOHMHRSDUG\GHIHQVHDQGWKDWLVZK\KHKDVEHHQDEOHWR
DSSOLFDWLRQRIlFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWODZXQGHU           DVVHUWWKDWGHIHQVHEHIRUHWKHVWDWHFRXUWVWKHFRXUWEHORZ
G$VWDWHFRXUWGHFLVLRQLVmFRQWUDU\WRl6XSUHPH         DQGKHUHRQDSSHDO0RUHRYHUWKHVWDWHPHQWVPDGHE\WKH
&RXUW SUHFHGHQW mLI WKH VWDWH FRXUW DUULYHV DW D FRQFOXVLRQ   SURVHFXWRU DW WKH SOHD KHDULQJ FRXOG QRW UHDVRQDEO\ EH
RSSRVLWHWRWKDWUHDFKHGE\>WKH6XSUHPH&RXUW@RQDTXHVWLRQ          LQWHUSUHWHGWREHDVVXUDQFHVDJDLQVWSURVHFXWLRQRQWKH&6&
RIODZRULIWKHVWDWHFRXUWGHFLGHVDFDVHGLIIHUHQWO\WKDQ>WKH      ,FKDUJHLIWKHVWDWHZRQRQDSSHDO7KH3HWLWLRQHUZDVJLYHQ
6XSUHPH&RXUW@KDVRQDVHWRIPDWHULDOO\LQGLVWLQJXLVKDEOH            QRWLFHWKDWWKHVWDWHPLJKWDSSHDOWKHWULDOFRXUWjVGHFLVLRQ
IDFWVl,GDWBBB6&WDW$VWDWHFRXUWGHFLVLRQ        DQGLQOLJKWRIWKDWQRWLFHYROXQWDULO\FKRVHWRHQWHUKLVSOHD
mLQYROYHVDQXQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG           WR WKH UHGXFHG FKDUJH  7KH IDFW WKDW 3HWLWLRQHU PD\ KDYH
)HGHUDO ODZl RQO\ ZKHUH mWKH VWDWH FRXUWjV DSSOLFDWLRQ RI      PLVLQWHUSUHWHGDQGXQUHDVRQDEO\UHOLHGRQWKHSURVHFXWRUjV
FOHDUO\HVWDEOLVKHGIHGHUDOODZZDVREMHFWLYHO\XQUHDVRQDEOHl
,GDWBBB6&WDW$IHGHUDOKDEHDVFRXUWPD\QRW
    3DOD]]RORY*RUF\FD                              1R        1R                          3DOD]]RORY*RUF\FD         

GHOLEHUDWHO\FKRRVLQJWRVHHNWHUPLQDWLRQRIWKHSURFHHGLQJV               ILQG D VWDWH DGMXGLFDWLRQ WR EH mXQUHDVRQDEOHl mVLPSO\
DJDLQVWKLPRQDEDVLVXQUHODWHGWRIDFWXDOJXLOWRULQQRFHQFH             EHFDXVHWKDWFRXUWFRQFOXGHVLQLWVLQGHSHQGHQWMXGJPHQWWKDW
RI WKH RIIHQVH RI ZKLFK KH LV DFFXVHG VXIIHUV QR LQMXU\         WKHUHOHYDQWVWDWHFRXUWGHFLVLRQDSSOLHGFOHDUO\HVWDEOLVKHG
FRJQL]DEOHXQGHUWKH'RXEOHsHRSDUG\&ODXVHLIWKH>VWDWH@LV              IHGHUDOODZHUURQHRXVO\RULQFRUUHFWO\l,GDWBBB6&W
SHUPLWWHGWRDSSHDOIURPVXFKDUXOLQJRIWKHWULDOFRXUWLQ               m5DWKHUWKDWDSSOLFDWLRQPXVWDOVREHXQUHDVRQDEOHl
IDYRURI>3HWLWLRQHU@l6FRWW86DW                         ,G
   3DUWLFXODUO\ ZKHUH DV KHUH WKH MXU\ KDG QRW \HW EHHQ            :KHUHWKHVWDWHFRXUWKDVIDLOHGWRDUWLFXODWHLWVUHDVRQLQJ
HPSDQHOHGDQGWKHSURFHHGLQJVKDGEDUHO\EHJXQWKH'RXEOH                 IRULWVGHFLVLRQmIHGHUDOFRXUWVDUHREOLJDWHGWRFRQGXFWDQ
sHRSDUG\&ODXVHLVQRWRIIHQGHGE\WKHJRYHUQPHQWjVDSSHDO                LQGHSHQGHQW UHYLHZ RI WKH UHFRUG DQG DSSOLFDEOH ODZ WR
7KHWULDOFRXUWGLVPLVVHGWKH&6&,FKDUJHEHIRUHMHRSDUG\                 GHWHUPLQH ZKHWKHU WKH VWDWH FRXUW GHFLVLRQ LV FRQWUDU\ WR
DWWDFKHG WR WKDW FKDUJH  ,W LV ZHOO VHWWOHG WKDW mDQ DFFXVHG   IHGHUDOODZXQUHDVRQDEO\DSSOLHVFOHDUO\HVWDEOLVKHGODZRU
PXVWVXIIHUMHRSDUG\EHIRUHKHFDQVXIIHUGRXEOHMHRSDUG\l                LVEDVHGRQDQXQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVLQOLJKW
6HUIDVVY8QLWHG6WDWHV86                        RIWKHHYLGHQFHSUHVHQWHGl+DUULVY6WRYDOO)G
                                                                           WK&LUFLWDWLRQVRPLWWHGm7KDWLQGHSHQGHQW
   3HWLWLRQHUFRQWHQGVWKDWWKHKROGLQJLQ6FRWWLVLQDSSOLFDEOH           UHYLHZKRZHYHULVQRWDIXOOGHQRYRUHYLHZRIWKHFODLPV
KHUHGXHWRFHUWDLQDVVXUDQFHVPDGHWRKLPDWKLVSOHDKHDULQJ            EXWUHPDLQVGHIHUHQWLDOEHFDXVHWKHFRXUWFDQQRWJUDQWUHOLHI
E\WKHVWDWHSURVHFXWRU3HWLWLRQHUFRQWHQGVDVKHGLGERWK              XQOHVV WKH VWDWH FRXUWjV UHVXOW LV QRW LQ NHHSLQJ ZLWK WKH
EHIRUH WKH VWDWH FRXUWV DQG GLVWULFW FRXUW EHORZ WKDW KH         VWULFWXUHVRIWKH$('3$l,G
UHDVRQDEO\ LQWHUSUHWHG DQG UHOLHG RQ WKH SURVHFXWRUjV
VWDWHPHQWVDQGWKDWKHZRXOGQRWKDYHJRQHIRUZDUGZLWKKLV                                     ,,,',6&866,21
SOHDKDGKHNQRZQWKDWWKHUHVXOWRIWKHVWDWHjVDSSHDOFRXOG
EHWKHUHLQVWDWHPHQWRIWKH&6&,FKDUJH3HWLWLRQHUDVVHUWV                 3HWLWLRQHUDUJXHVWKDWWKHDSSHDOWDNHQE\WKHVWDWHWRWKH
WKDW LQ OLJKW RI WKH SURVHFXWRUjV DVVXUDQFHV KH GLG QRW         0LFKLJDQ&RXUWRI$SSHDOVYLRODWHGKLVULJKWDJDLQVWGRXEOH
mYROXQWDULO\FKRRVHlWRWHUPLQDWHSURVHFXWLRQRIKLPRQWKH                MHRSDUG\DVJXDUDQWHHGE\WKH)LIWK$PHQGPHQWRIWKH8QLWHG
&6&,FKDUJH                                                              6WDWHV&RQVWLWXWLRQ+HFRQWHQGVWKDWWKH'RXEOHsHRSDUG\
                                                                           &ODXVHVWDQGVDVDQDEVROXWHEDUWRWKHVWDWHjVDSSHDOIURPWKH
  $WWKHSOHDKHDULQJWKHVWDWHSURVHFXWRUPDGHWKHIROORZLQJ             ILQDO MXGJPHQW RI KLV FRQYLFWLRQ DQG WR WKH VXEVHTXHQW
UHPDUNVWRWKH3HWLWLRQHUDQGWKHVWDWHWULDOFRXUW                       UHLQVWDWHPHQWRIWKH&6&,FKDUJH
  ,GRQjWNQRZWKDWWKHUHZLOORUZRQjWEH>DQDSSHDO@,                   7KH 'RXEOH sHRSDUG\ &ODXVH RI WKH )LIWK $PHQGPHQW
  WROG>WKH3HWLWLRQHUjVDWWRUQH\@WKDW,KDYHWRUHYLHZWKH               PDGH DSSOLFDEOH WR WKH VWDWHV WKURXJK WKH )RXUWHHQWK
  FDVHZLWKP\VXSHULRUV7KH>3HWLWLRQHU@E\WHQGHULQJD                $PHQGPHQW VHH %HQWRQ Y 0DU\ODQG  86  
  SOHDLVQRWFRQVHQWLQJWRDQDSSHDORUDQ\WKLQJ:HVWLOO              SURYLGHVWKDWQRSHUVRQVKDOOmEHVXEMHFWIRUWKHVDPH
  ZRXOG KDYH WR VHHN OHDYH WR DSSHDO LQ WKH &RXUW RI             RIIHQVHWREHWZLFHSXWLQMHRSDUG\RIOLIHRUOLPEl86
  $SSHDOVDQGLWjVDWWKHLUGLVFUHWLRQ,MXVWZDQWHGWRVWDWH            &RQVW DPHQG 9  7KH 'RXEOH sHRSDUG\ &ODXVH SURWHFWV
  WKDWRQWKHUHFRUGEHFDXVH,KRQHVWO\GRQjWNQRZZKHWKHU                 DJDLQVW D VHFRQG SURVHFXWLRQ IRU WKH VDPH RIIHQVH DIWHU
  WKHUHZLOOEHRQHRUZRQjWEXW,WKRXJKWWKDWLWZRXOGEH                FRQYLFWLRQRUDFTXLWWDODQGDJDLQVWPXOWLSOHSXQLVKPHQWVIRU
  SURSHUWRVWDWHWKDW,GRQjWWKLQNLWKDVDQ\EHDULQJRQ               WKHVDPHRIIHQVH6HH2KLRYsRKQVRQ86
  WKH >3HWLWLRQHU@  7KH >3HWLWLRQHU@ LV QRW ZDLYLQJ DQ\           1RUWK&DUROLQDY3HDUFH86
     3DOD]]RORY*RUF\FD                           1R       1R                          3DOD]]RORY*RUF\FD          

   7KHEDUWRUHWULDOIROORZLQJDFTXLWWDORUFRQYLFWLRQHQVXUHV        LQGLFWPHQW WR WKH 6L[WK &LUFXLW &RXUW RI $SSHDOV  6HH LG
WKDWWKHVWDWHGRHVQRWmPDNHUHSHDWHGDWWHPSWVWRFRQYLFWDQ          5HO\LQJ RQ WKH 6XSUHPH &RXUWjV RSLQLRQ LQ sHQNLQV ZH
LQGLYLGXDOIRUDQDOOHJHGRIIHQVHWKHUHE\VXEMHFWLQJKLPWR           GLVPLVVHGWKHDSSHDOFRQFOXGLQJWKDWDQ\IXUWKHUSURVHFXWLRQ
HPEDUUDVVPHQWH[SHQVHDQGRUGHDODQGFRPSHOOLQJKLPWR                RIWKHGHIHQGDQWRQWKHWZRGLVPLVVHGFRXQWVZDVEDUUHGE\
OLYHLQDFRQWLQXLQJVWDWHRIDQ[LHW\DQGLQVHFXULW\DVZHOODV       WKH'RXEOHsHRSDUG\&ODXVH6HH8QLWHG6WDWHVY6FRWW
HQKDQFLQJWKHSRVVLELOLW\WKDWHYHQWKRXJKLQQRFHQWKHPD\EH          )GWK&LU2QDSSHDOWKH6XSUHPH&RXUW
IRXQGJXLOW\l8QLWHG6WDWHVY6FRWW86         UHYHUVHGFRQFOXGLQJWKDW
TXRWLQJ *UHHQ Y 8QLWHG 6WDWHV  86  
7KLVEDULVQRWDEVROXWHKRZHYHU,WKDVORQJEHHQ           WKH GHIHQGDQW E\ GHOLEHUDWHO\ FKRRVLQJ WR VHHN
VHWWOHG WKDW WKH JHQHUDO SURKLELWLRQ DJDLQVW VXFFHVVLYH            WHUPLQDWLRQ RI WKH SURFHHGLQJV DJDLQVW KLP RQ D EDVLV
SURVHFXWLRQVGRHVQRWSUHYHQWWKHJRYHUQPHQWIURPUHWU\LQJ               XQUHODWHGWRIDFWXDOJXLOWRULQQRFHQFHRIWKHRIIHQVHRI
DGHIHQGDQWZKRVXFFHHGVLQJHWWLQJKLVILUVWFRQYLFWLRQVHW             ZKLFKKHLVDFFXVHGVXIIHUVQRLQMXU\FRJQL]DEOHXQGHU
DVLGHWKURXJKGLUHFWDSSHDORUFROODWHUDODWWDFNEHFDXVHRI            WKH 'RXEOH sHRSDUG\ &ODXVH LI WKH *RYHUQPHQW LV
VRPH HUURU LQ WKH SURFHHGLQJV OHDGLQJ WR FRQYLFWLRQ  6HH       SHUPLWWHGWRDSSHDOIURPVXFKDUXOLQJRIWKHWULDOFRXUW
/RFNKDUWY1HOVRQ860RUHRYHUZKHUH             LQIDYRURIWKHGHIHQGDQW5DWKHUZHFRQFOXGHWKDWWKH
DGHIHQGDQWKLPVHOIVHHNVWRKDYHKLVWULDOWHUPLQDWHGZLWKRXW           'RXEOH sHRSDUG\ &ODXVH ZKLFK JXDUGV DJDLQVW
DQ\ VXEPLVVLRQ WR HLWKHU MXGJH RU MXU\ DV WR KLV JXLOW RU     *RYHUQPHQWDORSSUHVVLRQGRHVQRWUHOLHYHDGHIHQGDQW
LQQRFHQFHDQDSSHDOE\WKHJRYHUQPHQWIURPKLVVXFFHVVIXO               IURPWKHFRQVHTXHQFHVRIKLVYROXQWDU\FKRLFH
HIIRUWWRGRVRGRHVQRWRIIHQGWKH'RXEOHsHRSDUG\&ODXVH
6HH6FRWW86DW                                         6FRWW86DW7KH6XSUHPH&RXUWQRWHGWKDWWKH
                                                                       GHIHQGDQWmZDVQHLWKHUDFTXLWWHGQRUFRQYLFWHGEHFDXVHKH
  ,Q8QLWHG6WDWHVYsHQNLQVWKH6XSUHPH&RXUWKHOGWKDWD           KLPVHOIXQGHUWRRNWRSHUVXDGHWKHWULDOFRXUWQRWWRVXEPLWWKH
GLVPLVVDO RFFXUULQJ DW WKH VWDJH RI WKH SURFHHGLQJ DIWHU       LVVXH RI JXLOW RU LQQRFHQFH WR WKH MXU\ ZKLFK KDG EHHQ
MHRSDUG\ KDG DWWDFKHG EXW SULRU WR WKH IDFWILQGHUjV           HPSDQHOHG WR WU\KLPl,G7KH&RXUWFRQFOXGHGWKDWWKH
FRQFOXVLRQ DV WR JXLOW RU LQQRFHQFH EDUUHG WKH VWDWH IURP    GHIHQGDQWmKD>G@QRWEHHQµGHSULYHGjRIKLVYDOXHGULJKWWRJR
DSSHDOLQJWKHGLVPLVVDODVWKHDSSHDOZRXOGUHTXLUHIXUWKHU           WRWKHILUVWMXU\RQO\WKHSXEOLF KD>G@EHHQGHSULYHGRILWV
SURFHHGLQJVOHDGLQJWRDIDFWXDOUHVROXWLRQRIWKHLVVXHRIJXLOW      YDOXHGULJKW WRµRQHFRPSOHWHRSSRUWXQLW\WRFRQYLFWWKRVH
RULQQRFHQFH867KH6XSUHPH               ZKRKDYHYLRODWHGLWVODZVjl,GDWTXRWLQJ$UL]RQDY
&RXUWTXLFNO\RYHUWXUQHGsHQNLQVLQ8QLWHG6WDWHVY6FRWW           :DVKLQJWRQ86
KROGLQJWKDWZKHQDGHIHQGDQWWDNHVDQDFWLYHUROHLQWKHWULDO
FRXUWjV GLVPLVVDO RI WKH LQGLFWPHQW WKH 'RXEOH sHRSDUG\          +HUH3HWLWLRQHUPRYHGWRTXDVKWKH LQIRUPDWLRQDJDLQVW
&ODXVH GRHV QRW SUHFOXGH WKH VWDWH IURP DSSHDOLQJ WKH          KLP DVVHUWLQJ WKDW WKH FRUSXV GHOLFWL RI &6& , ZDV QRW
GLVPLVVDO86                                   HVWDEOLVKHGE\LQGHSHQGHQWHYLGHQFHSULRUWRWKHDGPLVVLRQRI
                                                                       KLV FRQIHVVLRQ  3HWLWLRQHU OLNH WKH GHIHQGDQW LQ 6FRWW
  7KHGHIHQGDQWLQ6FRWWZDVFKDUJHGLQIHGHUDOGLVWULFWFRXUW         YROXQWDULO\ FKRVH WR WHUPLQDWH SURVHFXWLRQ RI WKH &6& ,
RQDWKUHHFRXQWLQGLFWPHQW86DW+HVXFFHVVIXOO\         FKDUJH DJDLQVW KLP RQ D EDVLV XQUHODWHG WR IDFWXDO JXLOW RU
PRYHGWRKDYHWKHILUVWDQGVHFRQGFRXQWVGLVPLVVHGGXHWR             LQQRFHQFHRIWKHRIIHQVHRIZKLFKKHZDVDFFXVHG0RUHRYHU
SUHLQGLFWPHQWGHOD\DQGZDVVXEVHTXHQWO\DFTXLWWHGRIWKH            WKH VWDWH ZDV TXLWH ZLOOLQJ WR FRQWLQXH ZLWK LWV &6& ,
WKLUG FRXQW  6HH LG  7KH JRYHUQPHQW DSSHDOHG WKH WULDO     SURVHFXWLRQEXW3HWLWLRQHUFKRVHWRDYRLGWULDO:HEHOLHYH
FRXUWjV RUGHU JUDQWLQJ GLVPLVVDO RI WKH WZR FRXQWV RI WKH     WKDW6XSUHPH&RXUWSUHFHGHQWPDNHVFOHDUWKDW3HWLWLRQHUmE\