Court Opinion

ID: 2970481
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:14:27.645413+00
Date Added: 2024-06-11T15:01:18.488803
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
   $OOH\Y%HOO                                1R                  3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

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

YLUWXDOO\ QR SUHSDUDWLRQ IDLOHG WR SUHVHQW DQ\ RI WKLV                    )LOH 1DPH DS

LQIRUPDWLRQDW*OHQQjVVHQWHQFLQJKHDULQJDQGIDLOHGHYHQWR
UHTXHVWDSSRLQWPHQWRIPHGLFDOH[SHUWVXQWLOQLQHGD\VEHIRUH
*OHQQjVKHDULQJ,GDW,QWKHSUHVHQWFDVH$OOH\jV    81,7('67$7(6&28572)$33($/6
ODZ\HUVHQJDJHGLQH[WHQVLYHSUHSDUDWLRQDQGLQYHVWLJDWLRQ                       )257+(6,;7+&,5&8,7
LQFOXGLQJWHVWLQJ$OOH\IRURUJDQLFEUDLQGDPDJHDQGWKH\                       BBBBBBBBBBBBBBBBB
IRXQGDQGSUHVHQWHGDJUHDWGHDORIHYLGHQFHDQGWHVWLPRQ\
DERXW$OOH\jVPHQWDOVWDWHDQGPHGLFDOSDVW
   7KLVSDQHOVLPSO\FDQQRWKROGLQWKHVHFLUFXPVWDQFHVWKDW       6('/(< $//(<                    ;
LWZDVREMHFWLYHO\XQUHDVRQDEOHIRUWKHVWDWHFRXUWWRKROGWKDW            3HWLWLRQHU$SSHOODQW     
WKHLQYHVWLJDWLRQDQGSUHVHQWDWLRQRI$OOH\jVPHGLFDOKLVWRU\                                         
XQGHUWDNHQ E\ $OOH\jV DWWRUQH\V GLG QRW IDOO mEHORZ DQ                                          1R
REMHFWLYHVWDQGDUGRIUHDVRQDEOHQHVVl6WULFNODQG86                   Y                     
DW$FFRUGLQJO\ZHDIILUPWKHGLVWULFWFRXUWjVGHQLDO                                         !
                                                                                                      
RI$OOH\jVKDEHDVSHWLWLRQRQWKLVLVVXH                           5,&.< %(//                       
                                                                             5HVSRQGHQW$SSHOOHH 
                              ,,,                                                                    1
  )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUWjV               $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
GHQLDORI$OOH\jVSHWLWLRQIRUDZULWRIKDEHDVFRUSXV                IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
                                                                       1Rn%HUQLFH%'RQDOG'LVWULFWsXGJH
                                                                                    $UJXHGsXO\
                                                                              'HFLGHGDQG)LOHG2FWREHU
                                                                     %HIRUH5<$1%2**6DQG%$7&+(/'(5&LUFXLW
                                                                                        sXGJHV
                                                                                     BBBBBBBBBBBBBBBBB
                                                                                          &2816(/
                                                                   $5*8('  3DXO 5 %RWWHL )('(5$/ 38%/,&
                                                                   '()(1'(5j62)),&(1DVKYLOOH7HQQHVVHHIRU$SSHOODQW
                                                                   sRVHSK ) :KDOHQ ,,, 2)),&( 2) 7+( $77251(<
                                                                   *(1(5$/ 1DVKYLOOH 7HQQHVVHH IRU $SSHOOHH
                                                                   21 %5,()  3DXO 5 %RWWHL )('(5$/ 38%/,&
                                                                   '()(1'(5j6 2)),&( 1DVKYLOOH 7HQQHVVHH 5REHUW /
                                                                   +XWWRQ*/$1./(5	%52:10HPSKLV7HQQHVVHHIRU

                                                                                               
     $OOH\Y%HOO                                   1R       1R                                    $OOH\Y%HOO     

$SSHOODQW  sRVHSK ) :KDOHQ ,,, 2)),&( 2) 7+(                 LQYHVWLJDWLRQ DQG SUHVHQWDWLRQ RI $OOH\jV PHGLFDO KLVWRU\
$77251(< *(1(5$/ 1DVKYLOOH 7HQQHVVHH IRU                         XQGHUWDNHQ E\ $OOH\jV DWWRUQH\V GLG QRW IDOO mEHORZ DQ
$SSHOOHH                                                               REMHFWLYHVWDQGDUGRIUHDVRQDEOHQHVVl6WULFNODQG86
                                                                        DW   6HH %HOO Y &RQH  6 &W   
                      BBBBBBBBBBBBBBBBB                                 mXQGHUGLWLVQRWHQRXJKWRFRQYLQFHDIHGHUDO
                                                                        KDEHDVFRXUWWKDWLQLWVLQGHSHQGHQWMXGJPHQWWKHVWDWHFRXUW
                          23,1,21                                       GHFLVLRQDSSOLHG6WULFNODQGLQFRUUHFWO\5DWKHU>SHWLWLRQHU@
                      BBBBBBBBBBBBBBBBB                                 PXVWVKRZWKDWWKH>VWDWHFRXUW@DSSOLHG6WULFNODQGWRWKHIDFWV
                                                                        RIKLVFDVHLQDQREMHFWLYHO\XQUHDVRQDEOHPDQQHUlFLWDWLRQ
   %2**6 &LUFXLW sXGJH  3HWLWLRQHU 6HGOH\ $OOH\ ZDV            RPLWWHG
FRQYLFWHGRIWKHNLGQDSSLQJUDSHDQGPXUGHURI8QLWHG
6WDWHV0DULQH&RUSV/DQFH&RUSRUDO6X]DQQH0DULH&ROOLQV                  8QGLVSXWHGWHVWLPRQ\HOLFLWHGE\WKHVWDWHWULDOFRXUWVKRZV
DQG ZDV VHQWHQFHG WR GHDWK  +LV FRQYLFWLRQ DQG VHQWHQFH       WKDWWKHDWWRUQH\VLQWKLVFDVHVRXJKWRXWGHWDLOVRI$OOH\jV
ZHUHDIILUPHGRQGLUHFWDSSHDODQG$OOH\ZDVGHQLHGUHOLHILQ          PHGLFDO KLVWRU\ IURP WKH SHRSOH ZKR NQHZ KLP EHVW DQG
VWDWHSRVWFRQYLFWLRQSURFHHGLQJV$OOH\jVSHWLWLRQIRUIHGHUDO        SDVVHG DOO RI WKH LQIRUPDWLRQ WKH\ UHFHLYHG RQ WR PHGLFDO
KDEHDVUHOLHIILOHGSXUVXDQWWR86&ZDVGHQLHG           H[SHUWVWKH\KDGKLUHGWRH[DPLQH$OOH\DQGDVVLVWLQWKHFDVH
E\WKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH:HVWHUQ'LVWULFWRI         :KHQWKH\ZHUHWROGRI$OOH\jVFKLOGKRRGKHDGLQMXU\WKH\
7HQQHVVHHLQDQH[KDXVWLYHDQGZHOOUHDVRQHGRSLQLRQ)RU              RUGHUHG QHXURORJLFDO WHVWLQJ ZKLFK FDPH EDFN QHJDWLYH
WKH UHDVRQV KHUHLQ ZH DIILUP WKH GLVWULFW FRXUWjV GHQLDO RI   )XUWKHU $OOH\jV DWWRUQH\V SUHVHQWHG HYLGHQFH RQ WKH
$OOH\jVSHWLWLRQ                                                     FRQGLWLRQV$OOH\SURIIHUHGZLWKWKHH[FHSWLRQRIWKHDOOHJHG
                                                                        ELUWKGHIHFWV:LWKUHVSHFWWRWKHELUWKUHFRUGVDVPHQWLRQHG
                               ,                                      EHIRUH$OOH\jVIDPLO\QHYHULQIRUPHGWKHDWWRUQH\VDERXWDQ\
                                                                        SUREOHPV DW ELUWK DQG WKH PHGLFDO H[SHUWV LQYROYHG LQ WKH
   $OOH\ D FLYLOLDQ PDUULHG WR D PLOLWDU\ SHUVRQ DEGXFWHG     FDVHQHYHUDVNHGIRUELUWKUHFRUGV
QLQHWHHQ\HDU ROG /DQFH &RUSRUDO &ROOLQV ZKLOH VKH ZDV
MRJJLQJQHDU0LOOLQJWRQ1DYDO%DVHLQ0LOOLQJWRQ7HQQHVVHH                ,Q DUJXLQJ WKDW WKLV SDQHO VKRXOG ILQG WKH VWDWH FRXUWjV
ODWH LQ WKH HYHQLQJ RI sXO\    +H DWWDFNHG DQG       UHMHFWLRQRI$OOH\jVLQHIIHFWLYHQHVVDUJXPHQWDQXQUHDVRQDEOH
PXUGHUHGKHUDQGOHIWKHUERG\LQDILHOG                            DSSOLFDWLRQRI6WULFNODQG$OOH\SRLQWVWRWKLVFRXUWjVGHFLVLRQ
                                                                        LQ*OHQQY7DWH)GWK&LU+RZHYHUWKLV
   7ZR PDULQHV MRJJLQJ QHDU ZKHUH &ROOLQV ZDV DEGXFWHG           FDVHGRHVQRWKHOS$OOH\)LUVW*OHQQZDVQRWGHFLGHGXQGHU
KHDUG&ROOLQVVFUHDPDQGUDQWRZDUGWKHVRXQG+RZHYHU                WKH $('3$ VWDQGDUG RI UHYLHZ ZKLFK VHUYHV WR UHVWULFW
EHIRUHWKH\UHDFKHGWKHVFHQHWKH\VDZ$OOH\jVFDUGULYHRII          JUHDWO\WKHFLUFXPVWDQFHVXQGHUZKLFKIHGHUDOFRXUWVFDQJUDQW
7KH\UHSRUWHGWREDVHVHFXULW\DQGDFFRPSDQLHGRIILFHUVRQ              D ZULW RI KDEHDV FRUSXV  6HFRQG WKH IDFWV RI *OHQQ
D WRXU RI WKH EDVH ORRNLQJ IRU WKH FDU WKH\ KDG VHHQ       VLJQLILFDQWO\GLIIHUIURPWKRVHRIWKHSUHVHQWFDVH,Q*OHQQ
8QVXFFHVVIXOWKH\UHWXUQHGWRWKHLUEDUUDFNV                          WKHSHWLWLRQHUZDVFRQYLFWHGRIPXUGHULQJDVKHULIIjVGHSXW\
  6RRQDIWHUUHWXUQLQJWRWKHLUTXDUWHUVKRZHYHUWKHPDULQHV          ZKLOHWU\LQJWREUHDNKLVROGHUEURWKHURXWRIMDLO,GDW
ZHUHFDOOHGEDFNWRWKHVHFXULW\RIILFHZKHUHWKH\LGHQWLILHG            7KH SHWLWLRQHU VXIIHUHG RUJDQLF EUDLQ GDPDJH SULRU WR
$OOH\jVFDUZKLFKKDGEHHQVWRSSHGE\RIILFHUV$OOH\DQG             ELUWKZDVFODVVLILHGDVPHQWDOO\UHWDUGHGDQGZDVFRQVLGHUHG
KLV ZLIH JDYH VWDWHPHQWV WR WKH EDVH VHFXULW\ SHUVRQQHO         DV D UHVXOW FRPSOHWHO\ XQGHU WKH LQIOXHQFH RI KLV ROGHU
DFFRXQWLQJ IRU WKHLU ZKHUHDERXWV  7KH VHFXULW\ SHUVRQQHO        EURWKHU,GDW+RZHYHU*OHQQjVODZ\HUVHQJDJHGLQ
    $OOH\Y%HOO                                       1R        1R                                     $OOH\Y%HOO      

WHVWLPRQ\ DW WKH WULDO FRXUW KHDULQJ VXJJHVWHG WKDW WKHVH            ZHUH VDWLVILHG ZLWK $OOH\jV VWRU\ DQG $OOH\ DQG KLV ZLIH
UHFRUGVZHUHQRWUHJXODUO\VRXJKW,GDW                              UHWXUQHGWRWKHLURQEDVHKRXVLQJ
   7KH VWDWH WULDO FRXUW DIWHU YLHZLQJ WKH UHFRUGV DQG                &ROOLQVjVERG\ZDVIRXQGDIHZKRXUVODWHUDQG$OOH\ZDV
LQIRUPDWLRQSURIIHUHGE\$OOH\DQGKHDULQJWKHWHVWLPRQ\RI                  LPPHGLDWHO\DUUHVWHGE\PLOLWDU\SROLFH+HYROXQWDULO\JDYH
DOO RI WKH H[SHUWV FRQFOXGHG WKDW $OOH\jV WULDO FRXQVHO KDG        DVWDWHPHQWWRWKHSROLFHDGPLWWLQJWRKDYLQJNLOOHG&ROOLQV
VXIILFLHQWO\ LQYHVWLJDWHG DQG SUHVHQWHG $OOH\jV PHGLFDO                 EXW JLYLQJ D VXEVWDQWLDOO\ IDOVH o DQG FRQVLGHUDEO\ PRUH
KLVWRU\$OOH\1R3VOLSRSDW7KHFRXUWQRWHG             KXPDQHoDFFRXQWRIWKHFLUFXPVWDQFHVRIWKHNLOOLQJ
WKDW DOO RI WKH H[SHUWV ZKR WHVWLILHG DW WULDO IRU ERWK VLGHV
DJUHHG WKDW WKH PHGLFDO UHFRUGV $OOH\ SURIIHUHG ZRXOG QRW               $OOH\ZDVFRQYLFWHGRQ0DUFKRIPXUGHULQWKH
KDYHFKDQJHGWKHLUFRQFOXVLRQV,GDW)XUWKHUWKHFRXUW              ILUVW GHJUHH DQG ZDV VHQWHQFHG WR GHDWK  +H ZDV DOVR
H[SODLQHG WKDW m>H@[FHSW IRU WKH ELUWK UHFRUGV PRVW RI WKH        FRQYLFWHGRIDJJUDYDWHGNLGQDSSLQJDQGDJJUDYDWHGUDSHIRU
UHFRUGV DERXW WKH SHWLWLRQHUjV LOOQHVVHV DQG VXUJHULHV                ZKLFK KH UHFHLYHG FRQVHFXWLYH IRUW\\HDU VHQWHQFHV  7KH
LQYROYLQJKLVNLGQH\VEODGGHUDQGSHQLVZHUHSUHVHQWHGWR                  7HQQHVVHH6XSUHPH&RXUWDIILUPHG$OOH\jVFRQYLFWLRQDQG
WKHMXU\LQ'UV%DWWOHDQG0DUVKDOOjVWHVWLPRQ\l,GDW               VHQWHQFHRQGLUHFWDSSHDO6WDWHY$OOH\6:G
                                                                       7HQQ
   2Q SRVWFRQYLFWLRQ DSSHDO WKH 7HQQHVVHH &RXUW RI                      $OOH\ ILOHG D VWDWH SHWLWLRQ IRU SRVWFRQYLFWLRQ UHOLHI
&ULPLQDO$SSHDOVXSKHOGWKHWULDOFRXUWjVGHFLVLRQ$OOH\              DOOHJLQJ QXPHURXV JURXQGV LQFOXGLQJ VHYHUDO FODLPV RI
6:GDW&LWLQJWKHVWDQGDUGIRUFRQVWLWXWLRQDOO\                  MXGLFLDOELDVFKDOOHQJHVWRWKHWULDOFRXUWjVHYLGHQWLDU\UXOLQJV
LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO VHW RXW LQ 6WULFNODQG Y           DQGFODLPVRILQHIIHFWLYHDVVLVWDQFHRIFRXQVHO7KHMXGJH
:DVKLQJWRQ  86    WKH DSSHDOV FRXUW              ZKRSUHVLGHGRYHU$OOH\jVWULDOKHOGVHYHUDOKHDULQJVRQWKH
VRXJKWWRGHWHUPLQHZKHWKHU$OOH\KDGVKRZQWKDWKLVFRXQVHO                 SHWLWLRQEHIRUHGHQ\LQJLW2QDSSHDOWKH&RXUWRI&ULPLQDO
KDGQRWUHQGHUHGUHDVRQDEO\HIIHFWLYHDVVLVWDQFHDQGZKHWKHU                 $SSHDOVYDFDWHGWKHGHQLDODQGLQUHVSRQVHWR$OOH\jVFODLPV
$OOH\ KDG VXIIHUHG SUHMXGLFH IURP KLV FRXQVHOjV GHILFLHQW             RIMXGLFLDOELDVUHPDQGHGWKHFDVHIRUDQHYLGHQWLDU\KHDULQJ
SHUIRUPDQFH$OOH\6:GDW7KHFRXUWRIDSSHDOV                EHIRUHDGLIIHUHQWWULDOMXGJH$OOH\Y6WDWH6:G
QRWHGWKDWm>W@KHWULDOFRXUWIRXQGWKDWWKHGHIHQVHDWWRUQH\V               7HQQ&ULP$SS
ZHUHHIIHFWLYHLQWKHLUUHSUHVHQWDWLRQRIWKHSHWLWLRQHUl,ELG
&LWLQJWHVWLPRQ\IURPWKHWULDOFRXUWWKHDSSHDOVFRXUWDJUHHG               $QRWKHUWULDOMXGJHXQGHUWRRNDQHYLGHQWLDU\KHDULQJDQG
ILQGLQJWKDWm>W@KHUHFRUGGHPRQVWUDWHVWKDWGHIHQVHFRXQVHO                 WKHQGHQLHG$OOH\jVSHWLWLRQ$OOH\Y6WDWH1R3VOLS
VSHQWDJUHDWGHDORIWLPHLQWKHVHOHFWLRQDQGSUHSDUDWLRQRI               RS 6KHOE\ &RXQW\ &ULP &W $XJ    7KLV
WULDO7KHSHWLWLRQHUZDVH[DPLQHGE\VHYHUDOLQWKHPHGLFDO                GLVSRVLWLRQZDVDIILUPHGE\WKH7HQQHVVHH&RXUWRI&ULPLQDO
SURIHVVLRQl  ,G DW   7KH FRXUW KHOG DFFRUGLQJO\ WKDW       $SSHDOV DQG WKH 7HQQHVVHH 6XSUHPH &RXUW GHQLHG $OOH\
$OOH\KDGQRWEHHQGHQLHGHIIHFWLYHDVVLVWDQFH,GDW                 SHUPLVVLRQWRDSSHDO$OOH\Y6WDWH6:G7HQQ
                                                                             &ULP $SS  SHUPLVVLRQ WR DSSHDO GHQLHG 7HQQ
  7KH 7HQQHVVHH FRXUW KDYLQJ FRQVLGHUHG DQG DGMXGLFDWHG                6HSW
$OOH\jV LQHIIHFWLYH DVVLVWDQFH DUJXPHQW RQ WKH PHULWV DQG
KDYLQJDSSOLHGWKH6WULFNODQGVWDQGDUGLQLWVDQDO\VLVWKHILUVW              $OOH\ILOHGWKHSUHVHQWSHWLWLRQIRUKDEHDVFRUSXVLQGLVWULFW
TXHVWLRQ IRU WKLV FRXUW XQGHU $('3$ LV ZKHWKHU LW ZDV               FRXUWDQGWKHFRXUWGHQLHG$OOH\UHOLHI$OOH\Y%HOO)
REMHFWLYHO\XQUHDVRQDEOHIRUWKHVWDWHFRXUWWRKROGWKDWWKH                6XSSG:'7HQQ7KHUHDIWHU
                                                                             WKLV FRXUW JUDQWHG KLP D FHUWLILFDWH RI DSSHDODELOLW\ RQ WKH
     $OOH\Y%HOO                                   1R       1R                                                     $OOH\Y%HOO           

IROORZLQJ ILYH LVVXHV   ZKHWKHU $OOH\ ZDV GHQLHG GXH          $OOH\UDLVHGWKLVLVVXHLQKLVSRVWFRQYLFWLRQSURFHHGLQJV
SURFHVVEHFDXVHKHZDVWULHGE\DELDVHGMXGJHZKHWKHU             EHIRUHWKH7HQQHVVHH&RXUWRI$SSHDOVDQGWKLVZDVRQHRI
H[SDUWHFRQWDFWVEHWZHHQWKHMXGJHDQGMXURUVLQ$OOH\jVFDVH          WKHLVVXHVDGGUHVVHGDWWKHHYLGHQWLDU\KHDULQJKHOGLQWKHWULDO
YLRODWHG KLV FRQVWLWXWLRQDO ULJKWV  ZKHWKHU DW WKH JXLOW   FRXUWDIWHUWKHFRXUWRIDSSHDOVUHPDQGHG$OOH\jVFDVH7KH
SKDVH $OOH\ ZDV GHQLHG KLV ULJKW WR SUHVHQW D IXOO GHIHQVH   WULDO MXGJH ZKR UHSODFHG sXGJH $[OH\ KHOG DQ H[WHQVLYH
WKURXJKWKHXQFRQVWLWXWLRQDOH[FOXVLRQRISURRIWKDWKHVXIIHUV         HYLGHQWLDU\KHDULQJDQGXQGHUWRRNDGHWDLOHGDQDO\VLVRIWKH
IURP PXOWLSOH SHUVRQDOLW\ GLVRUGHU  ZKHWKHU DW WKH          UHFRUG LQ WKH FDVH  $OOH\jV UHOHYDQW DOOHJDWLRQV RI
VHQWHQFLQJ SKDVH $OOH\ ZDV GHQLHG KLV ULJKW WR UHFHLYH         LQHIIHFWLYHQHVVZHUHVXEVWDQWLDOO\WKHVDPHDVKHUDLVHVWRWKLV
FRQVLGHUDWLRQ RI PLWLJDWLQJ HYLGHQFH ZKHQ WKH WULDO FRXUW        FRXUWoWKDWKLVDWWRUQH\VIDLOHGVXIILFLHQWO\WRLQYHVWLJDWHDQG
H[FOXGHGWKHVDPHPXOWLSOHSHUVRQDOLW\GLVRUGHUHYLGHQFHDQG           SUHVHQW HYLGHQFH RI ELUWK DQG FKLOGKRRG PHGLFDO SUREOHPV
 ZKHWKHU $OOH\ UHFHLYHG FRQVWLWXWLRQDOO\ LQHIIHFWLYH            WKDWPLJKWKDYHOHQWZHLJKWWRKLVLQVDQLW\GHIHQVHDWWKHJXLOW
DVVLVWDQFHRIFRXQVHO                                                  SKDVHDQGPLWLJDWLRQDWWKHVHQWHQFLQJSKDVH
                                 ,,                                        7KHWHVWLPRQ\WDNHQE\WKHWULDOFRXUWDQGWKHFRQFOXVLRQV
                                                                        LWUHDFKHGVXPPDUL]HGE\WKH7HQQHVVHH&RXUWRI$SSHDOV
  3XUVXDQWWRWKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\             PDNH FOHDU WKDW $OOH\jV DWWRUQH\V FRQGXFWHG D WKRURXJK
$FWRIm$('3$l3XE/1R6WDW              LQYHVWLJDWLRQLQWR$OOH\jVKLVWRU\$OOH\6:GDW
DIHGHUDOFRXUWPD\QRWJUDQWDZULWRIKDEHDVFRUSXV              +LV DWWRUQH\V WHVWLILHG WKDW WKH\ LQWHUYLHZHG
ZLWKUHVSHFWWRDQ\FODLPWKDWZDVDGMXGLFDWHGRQWKHPHULWV            $OOH\jVVLVWHUPRWKHUDQGZLIHDERXW$OOH\jVFKLOGKRRGDQG
LQ VWDWH FRXUW XQOHVV WKH VWDWH FRXUWjV DGMXGLFDWLRQ           PHGLFDOKLVWRU\,GDW+LVIDPLO\SURYLGHGWKHDWWRUQH\V
mUHVXOWHGLQDGHFLVLRQWKDWZDVFRQWUDU\WRRULQYROYHGDQ        ZLWK LQIRUPDWLRQ UHJDUGLQJ $OOH\jV VWUDQJH EHKDYLRU DV D
XQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG)HGHUDOODZ           FKLOG D GLYLQJ DFFLGHQW LQ ZKLFK $OOH\ VXVWDLQHG D KHDG
DVGHWHUPLQHGE\WKH6XSUHPH&RXUWRIWKH8QLWHG6WDWHVRU             LQMXU\DQGH[WHQVLYHXUHWKUDOEODGGHUDQGNLGQH\SUREOHPV
UHVXOWHGLQDGHFLVLRQWKDWZDVEDVHGXSRQDQXQUHDVRQDEOH          $OOH\VXIIHUHGDVDFKLOG,ELG+RZHYHUWKHIDPLO\GLGQRW
GHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRIWKHHYLGHQFHSUHVHQWHGLQ        LQIRUP$OOH\jVDWWRUQH\VDERXWDQ\SUREOHPVDW$OOH\jVELUWK
WKH6WDWHFRXUWSURFHHGLQJl86&G                      ,GDW
   $ VWDWH FRXUW GHFLVLRQ LV mFRQWUDU\ WRl 6XSUHPH &RXUW           $OOH\jVDWWRUQH\VDUUDQJHGIRUKLPWRXQGHUJRQHXURORJLFDO
SUHFHGHQWmLIWKHVWDWHFRXUWDUULYHVDWDFRQFOXVLRQRSSRVLWH          H[DPLQDWLRQVZKLFKVKRZHGQRLQGLFDWLRQRIEUDLQGDPDJH
WRWKDWUHDFKHGE\>WKH&RXUW@RQDTXHVWLRQRIODZlRUmLIWKH        ,GDW)XUWKHU$OOH\jVDWWRUQH\VDUUDQJHGIRUKLPWREH
VWDWHFRXUWFRQIURQWVIDFWVWKDWDUHPDWHULDOO\LQGLVWLQJXLVKDEOH       H[DPLQHG E\ VHYHUDO PHGLFDO SURIHVVLRQDOV DQG $OOH\jV
IURP D UHOHYDQW 6XSUHPH &RXUW SUHFHGHQW DQG DUULYHV DW D       DWWRUQH\V SDVVHG RQ WR WKHP WKH LQIRUPDWLRQ DQG UHFRUGV
UHVXOWRSSRVLWHWRlWKH&RXUWjVGHFLVLRQ:LOOLDPVY7D\ORU          WKH\jGREWDLQHGRI$OOH\jVSDVWPHGLFDOKLVWRU\,ELG1RQH
86$VWDWHFRXUWGHFLVLRQLQYROYHVDQ           RI WKH PHGLFDO H[SHUWV FRQVXOWHG E\ $OOH\jV DWWRUQH\V
mXQUHDVRQDEOH DSSOLFDWLRQl RI FOHDUO\ HVWDEOLVKHG 6XSUHPH          VXJJHVWHG WKH QHHG IRU ELUWK UHFRUGV LELG DQG LQGHHG
&RXUW SUHFHGHQW ZKHQ LW FRUUHFWO\ LGHQWLILHV WKH JRYHUQLQJ
OHJDOVWDQGDUGEXWDSSOLHVLWWRWKHIDFWVRIWKHFDVHEHIRUHLWLQ
DQREMHFWLYHO\XQUHDVRQDEOHPDQQHU,GDW
  )HGHUDOFRXUWVFDQRQO\FRQVLGHURQKDEHDVUHYLHZFODLPV              WKHUHIRUH   ZH   DIILUP   WKH   GLVWULFW   FRXUWjV   GHQLDO   RI   $OOH\jV   UHTXHVW   IRU

WKDWDSHWLWLRQHUKDVILUVWUDLVHGEHIRUHWKHVWDWHFRXUWV6HH     IXQGLQJ
        $OOH\Y%HOO                                                   1R            1R                                      $OOH\Y%HOO      

EHFDXVHLWKHOGWKHWDSHVLUUHOHYDQWDQGXQUHOLDEOH)XUWKHUDV                                86&E6WDQIRUGY3DUNHU)GWK
H[SODLQHGDERYHWKHFRXUWGLGQRWGRVREDVHGRQDSHUVH                                       &LU  m:KHUH D SHWLWLRQHU KDV QRW IXOO\ DQG IDLUO\
UXOH RU D PHFKDQLFDO DUELWUDU\ RU GLVSURSRUWLRQDWH                                      SUHVHQWHGDIHGHUDOFODLPWRWKHVWDWH
VKLJKHVWFRXUWD
DSSOLFDWLRQRIDVWDWHUXOH7KHVWDWHFRXUWPD\KDYHHUUHGLQ                                  IHGHUDOFRXUWRUGLQDULO\ZLOOQRWFRQVLGHUWKHPHULWVRIWKDW
LWVZHLJKLQJKRZHYHU$OOH\KDVVLPSO\QRWVKRZQWKDWWKLV                                      FODLPl&ODLPVQRWILUVWUDLVHGLQVWDWHFRXUWDUHXQH[KDXVWHG
VWDWHHYLGHQWLDU\GHFLVLRQZDVFRQWUDU\WRFOHDUO\HVWDEOLVKHG                                   DQG DUH RUGLQDULO\ GLVPLVVHG ZLWKRXW SUHMXGLFH LQ RUGHU WR
6XSUHPH&RXUWFDVHODZ                                                                          SHUPLWWKHSHWLWLRQHUWKHRSSRUWXQLW\WRSXUVXHWKHPLQVWDWH
                                                                                                 FRXUW5RVHY/XQG\86
               ,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO&ODLP
                                                                                                    +RZHYHULIDQXQH[KDXVWHGFODLPZRXOGEHSURFHGXUDOO\
  )LQDOO\ $OOH\ DUJXHV WKDW KH UHFHLYHG FRQVWLWXWLRQDOO\                                  EDUUHGXQGHUVWDWHODZWKDWFODLPLVSURFHGXUDOO\GHIDXOWHGIRU
LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOZKHQKLVWULDOFRXQVHOIDLOHG                                  SXUSRVHV RI IHGHUDO KDEHDV UHYLHZ  6HH &ROHPDQ Y
WR LQYHVWLJDWH DQG SUHVHQW WR WKH MXU\ DGGLWLRQDO PHGLFDO                                7KRPSVRQ867HDJXHY/DQH
HYLGHQFHDWERWKWKHJXLOWDQGVHQWHQFLQJSKDVHVRIKLVWULDO                                   86:DLQZULJKWY6\NHV86
6SHFLILFDOO\$OOH\FRQWHQGVWKDWKLVFRXQVHOIDLOHGWRSUHVHQW                                  6H\PRXUY:DONHU)GWK
HYLGHQFHRIEUDLQGDPDJHVSLQDELILGDDQXQGHUGHYHORSHG                                        &LU  m:KHQ D KDEHDV SHWLWLRQHU IDLOV WR REWDLQ
SHQLV D GLVWRUWHG EODGGHU DEHUUDQW NLGQH\V DQG SUREOHPV                                FRQVLGHUDWLRQ RI D FODLP E\ D VWDWH FRXUW   GXH WR WKH
$OOH\H[SHULHQFHGDWELUWK$OOH\DUJXHVWKDWKLVFRXQVHOjV                                     SHWLWLRQHU
VIDLOXUHWRUDLVHWKDWFODLPEHIRUHWKHVWDWHFRXUWV
IDLOXUH WR LQYHVWLJDWH WKHVH FRQGLWLRQV IXUWKHU DQG SUHVHQW                               ZKLOHVWDWHFRXUWUHPHGLHVDUHVWLOODYDLODEOHWKDWFODLP
HYLGHQFH RI WKHP WR WKH MXU\ IHOO EHORZ WKH VWDQGDUG RI                                LVSURFHGXUDOO\GHIDXOWHGDQGPD\QRWEHFRQVLGHUHGE\WKH
UHDVRQDEOHQHVVDQGWKDWKLVFRXQVHOjVIDLOXUHSUHMXGLFHGKLP                                    IHGHUDO FRXUW RQ KDEHDV UHYLHZl  ,Q RUGHU WR JDLQ
LQ WKDW WKH MXU\ ZRXOG QRWKDYH VHQWHQFHG KLP WR GHDWK LI                             FRQVLGHUDWLRQ RI D FODLP WKDW LV SURFHGXUDOO\ GHIDXOWHG D
WKH\jGNQRZQWKHVHWKLQJV                                                                       SHWLWLRQHU PXVW GHPRQVWUDWH FDXVH DQG SUHMXGLFH IRU WKH
                                                                                                 IDLOXUHRUWKDWDPLVFDUULDJHRIMXVWLFHZLOOUHVXOWIURPWKH
                                                                                                 ODFNRIUHYLHZ:DLQZULJKW86DW6H\PRXU
                                                                                                )GDW
       $OOH\ UHODWHGO\ FKDOOHQJHV WKH GLVWULFW FRXUWjV GHQLDO RI KLV UHTXHVW

                                                                                                    7KHVHUXOHVDSSO\ERWKWRHQWLUHO\QHZOHJDOFODLPVDQGQHZ
IRU IXQGLQJ LQ RUGHU WR FRQGXFW EUDLQ DQG JHQHWLF WHVWV DLPHG DW JDUQHULQJ

                                                                                                 IDFWXDO EDVHV IRU UHOLHI IRU D FODLP WR EH FRQVLGHUHG
DGGLWLRQDO HYLGHQFH RI PHGLFDO LPSDLUPHQWV WKDW KLV WULDO DWWRUQH\V IDLOHG

WR LQYHVWLJDWH RU SUHVHQW      86&  T ZKLFK DSSOLHV WR GHDWK

SHQDOW\HOLJLEOH FULPLQDO GHIHQGDQWV DQG KDEHDV SHWLWLRQHUV SURYLGHV                           H[KDXVWHGmWKHKDEHDVSHWLWLRQHUPXVWKDYHµIDLUO\SUHVHQWHGj
     8SRQ D ILQGLQJ WKDW LQYHVWLJDWLYH H[SHUW RU RWKHU VHUYLFHV                 DUH            WRWKHVWDWHFRXUWVWKHµVXEVWDQFHjRIKLVIHGHUDOKDEHDVFRUSXV
     UHDVRQDEO\        QHFHVVDU\      IRU     WKH       UHSUHVHQWDWLRQ      RI    WKH            FODLPl$QGHUVRQY+DUOHVV86TXRWLQJ
     GHIHQGDQW         WKH FRXUW PD\ DXWKRUL]H WKH GHIHQGDQW
V DWWRUQH\V
                                                                                                 3LFDUGY&RQQRU86 VHH
                                                                                                 DOVR:RQJY0RQH\)GWK&LUmWKH
     WR   REWDLQ   VXFK   VHUYLFHV   RQ   EHKDOI   RI   WKH   GHIHQGDQW   DQG   LI   VR

     DXWKRUL]HG VKDOO RUGHU WKH SD\PHQW RI IHHV DQG H[SHQVHV WKHUHIRU

                                                                                             GRFWULQHRIH[KDXVWLRQUHTXLUHVWKDWDFODLPEHSUHVHQWHGWR
HPSKDVLV DGGHG                                                                                 WKH VWDWH FRXUWV XQGHU WKH VDPH WKHRU\ LQ ZKLFK LW LV ODWHU
,Q DQ RUGHU GHQ\LQJ $OOH\jV UHTXHVW IRU IXQGLQJ WKH GLVWULFW FRXUW LQ WKLV
                                                                                                 SUHVHQWHGLQIHGHUDOFRXUWl
FDVH KHOG WKDW IXQGLQJ IRU VXFK WHVWV ZDV QRW UHDVRQDEO\ QHFHVVDU\                         IRU

$OOH\jV KDEHDV SHWLWLRQ EHFDXVH $OOH\ IDLOHG WR GHPRQVWUDWH KRZ WKH WHVWV

ZHUH   UHOHYDQW WR WKH RQO\ TXHVWLRQ EHIRUH WKH GLVWULFW FRXUW o mZKHWKHU WKH
VWDWH FRXUWV UHDVRQDEO\ DSSOLHG IHGHUDO ODZ LQ KROGLQJ WKDW KLV WULDO FRXQVHO
GLG QRW SURYLGH LQHIIHFWLYH DVVLVWDQFHl 7KLV KROGLQJ ZDV FOHDUO\ FRUUHFW
     $OOH\Y%HOO                                      1R        1R                                      $OOH\Y%HOO    

                       sXGLFLDO%LDV&ODLPV                                    ,WLVFOHDUWKDWWKLVUXOHOLPLWVWKHWUDGLWLRQDOGLVFUHWLRQRI
                                                                            VWDWH FRXUWVWRH[FOXGHHYLGHQFHEDVHGRQVWDWHHYLGHQWLDU\
   $OOH\jVSHWLWLRQIRUDZULWRIKDEHDVFRUSXVOLVWVWKLUWHHQ              UXOHV+RZHYHUQRWKLQJLQWKH6XSUHPH&RXUWFDVHVFLWHGE\
DOOHJHGLQVWDQFHVRIMXGLFLDOELDVZKLFKKHFRQWHQGVHQWLWOH               $OOH\FRPSHOVWKHFRQFOXVLRQWKDWVWDWHFRXUWVGRQRWUHWDLQ
KLPWRKDEHDVUHOLHIRQWKHJURXQGWKDWKHZDVGHQLHGKLVGXH               VRPH GLVFUHWLRQ WR DSSO\ WKHLU UXOHV RI HYLGHQFH DW WKH
SURFHVV ULJKW WR D IDLU WULDO LQ D IDLU WULEXQDO  ,Q GHQ\LQJ   VHQWHQFLQJSKDVH6HHHJ*UHHQY*HRUJLD86
$OOH\jVSHWLWLRQIRUKDEHDVUHOLHIWKHGLVWULFWFRXUWKHOSIXOO\            RYHUWXUQLQJDGHDWKVHQWHQFHRQWKHJURXQGWKDW
GLYLGHGWKHVHLQVWDQFHVLQWRWKUHHJURXSVFODLPVEDVHGRQ             *HRUJLDjVKHDUVD\UXOHKDGEHHQDSSOLHGmPHFKDQLVWLFDOO\lWR
DOOHJHG FRQGXFW GXULQJ VWDWH SRVWFRQYLFWLRQ SURFHHGLQJV              H[FOXGHUHOHYDQWPLWLJDWLQJHYLGHQFHVHHDOVR6DOODKGLQY
 FODLPV WKDW $OOH\ UDLVHG EHIRUH WKH VWDWH FRXUWV DQG          *LEVRQ  )G   WK &LU  DIWHU
FODLPVWKDW$OOH\IDLOHGWRUDLVHEHIRUHWKHVWDWHFRXUWV              UHYLHZLQJWKH/RFNHWWOLQHRIFDVHVH[SODLQLQJWKDWm>W@KLVLV
$OOH\)6XSSGDW2QDSSHDO                  QRWWRVD\KRZHYHUWKDWDWULDOFRXUWPXVWDGPLWDQ\DQGDOO
$OOH\RQO\H[SUHVVO\FKDOOHQJHVWKHGLVWULFWFRXUWjVKROGLQJ                PLWLJDWLRQHYLGHQFHSURIIHUHGE\DFDSLWDOGHIHQGDQW5HYLHZ
ZLWK UHVSHFW WR WKH WKLUG JURXS KRZHYHU ZH ZLOO EULHIO\          RIWKHDERYHFLWHGFDVHVLQGLFDWHVWKDWSURIIHUHGPLWLJDWLRQ
GLVFXVVWKHILUVWWZRDVZHOO                                              HYLGHQFH PXVW EH UHOLDEOH DQG UHOHYDQW WR EH DGPLWWHGl
                                                                            3D[WRQY:DUG)GWK&LUm7KLV
   7KH GXH SURFHVV FODXVH RI WKH )RXUWHHQWK $PHQGPHQW                6XSUHPH&RXUWDXWKRULW\PDNHVFOHDUWKDWDVWDWHFRXUWPD\
JXDUDQWHHVDFULPLQDOGHIHQGDQWDVDQ\OLWLJDQWWKHULJKWWRD            QRWDSSO\DVWDWHUXOHRIHYLGHQFHLQDSHUVHRUPHFKDQLVWLF
IDLUWULDOLQDIDLUWULEXQDO,QUH0XUFKLVRQ86              PDQQHU VR DV WR LQIULQJH XSRQ D GHIHQGDQW
V FRQVWLWXWLRQDO
,IDKDEHDVFRXUWGHWHUPLQHVWKDWELDVE\DVWDWH              ULJKWWRDIXQGDPHQWDOO\IDLUWULDODQGWRSUHVHQWPLWLJDWLQJ
MXGJHUHVXOWHGLQDFRQVWLWXWLRQDOYLRODWLRQWKHQWKHFRXUWLV             HYLGHQFHLQDFDSLWDOSURFHHGLQJl%XFKDQDQY$QJHORQH
UHTXLUHGWRRYHUWXUQWKHVWDWHFRXUWGHFLVLRQ6HH0DXULQRY               )G   WK &LU  DSSOLFDWLRQ RI
sRKQVRQ)GWK&LUm%HFDXVHMXGLFLDO               9LUJLQLDjVKHDUVD\UXOHWRH[FOXGHPLWLJDWLQJHYLGHQFHIURP
ELDVLQIHFWVWKHHQWLUHWULDOSURFHVVLWLVQRWVXEMHFWWRKDUPOHVV         D FDSLWDO VHQWHQFLQJ KHDULQJ GLG QRW ULVH WR WKH OHYHO RI D
HUURUUHYLHZl7KLVFRXUWKDVORRNHGWRWKH6XSUHPH&RXUWjV               FRQVWLWXWLRQDO YLRODWLRQ +XWFKLQV Y *DUULVRQ  )G
GHFLVLRQLQ/LWHN\Y8QLWHG6WDWHV86                WK &LU  m:H ILQG QR LQGLFDWLRQ WKDW
WRSURYLGHWKHVWDQGDUGIRUGHFLGLQJMXGLFLDOELDVFODLPVLQ               (GGLQJV DQG /RFNHWW SUHHPSW DOO VWDWH UXOHV RI HYLGHQFHl
WKDWFDVHWKH&RXUWH[SODLQHGWKDWmWKHSHMRUDWLYHFRQQRWDWLRQ             ,QGHHGWKH&RXUWLQ/RFNHWW86DWQH[SOLFLWO\
RI WKH WHUPV µELDVj DQG µSUHMXGLFHj GHPDQGV WKDW WKH\ EH           KHOG WKDW m>Q@RWKLQJ LQ WKLV RSLQLRQ OLPLWV WKH WUDGLWLRQDO
DSSOLHGRQO\WRMXGLFLDOSUHGLVSRVLWLRQVWKDWJREH\RQGZKDW                DXWKRULW\ RI D FRXUW WR H[FOXGH DV LUUHOHYDQW HYLGHQFH QRW
LVQRUPDODQGDFFHSWDEOHl,GDWVHHDOVR0DXULQR               EHDULQJ RQ WKH GHIHQGDQW
V FKDUDFWHU SULRU UHFRUG RU WKH
)GDW                                                               FLUFXPVWDQFHVRIKLVRIIHQVHl
   7ZRRIWKHMXGLFLDOELDVFODLPV$OOH\PDNHVLQKLVKDEHDV                  ,QWKHSUHVHQWFDVHWKH7HQQHVVHHFRXUWVGLGQRWH[FOXGH
SHWLWLRQGHDOZLWKDOOHJHGFRQGXFWGXULQJVWDWHSRVWFRQYLFWLRQ             IURPWKHMXU\jVFRQVLGHUDWLRQDWVHQWHQFLQJWKHDOOHJHGIDFWRI
SURFHHGLQJV$OOH\FODLPVWKDWsXGJH:)UHG$[OH\PDGH                    $OOH\jVPXOWLSOHSHUVRQDOLW\GLVRUGHU,QGHHG$OOH\KDGWKH
LPSURSHU FRPPHQWV GXULQJ $OOH\jV SRVWFRQYLFWLRQ                        RSSRUWXQLW\WRSUHVHQWZLGHUDQJLQJHYLGHQFHRQWKLVDVSHFW
SURFHHGLQJVDQGWKDWKHH[SUHVVHGGLVVDWLVIDFWLRQZLWKWKH                 RI$OOH\jVFKDUDFWHU,QVWHDGWKHVWDWHFRXUWDIWHUYLHZLQJWKH
OLWLJDWLRQ RI SRVWFRQYLFWLRQ SURFHHGLQJV LQ RWKHU FDSLWDO            WDSHVPHUHO\ZHLJKHGDQGWKHQSUHFOXGHGLQWURGXFWLRQRIWKH
FDVHV+RZHYHUHUURUFRPPLWWHGGXULQJVWDWHSRVWFRQYLFWLRQ               YLGHRWDSHVDOOHJHGO\VKRZLQJPDQLIHVWDWLRQVRIWKLVGLVRUGHU
       $OOH\Y%HOO                                                1R          1R                                    $OOH\Y%HOO      

ODZlEXWQRWLQJWKDWWKHLQGHSHQGHQWUHYLHZmLVQRWDIXOOGH                            SURFHHGLQJVFDQQRWSURYLGHDEDVLVIRUIHGHUDOKDEHDVUHOLHI
QRYRUHYLHZRIWKHFODLPVEXWUHPDLQVGHIHUHQWLDOEHFDXVH                                 .LUE\ Y 'XWWRQ  )G   WK &LU 
WKHFRXUWFDQQRWJUDQWUHOLHIXQOHVVWKHVWDWHFRXUW
VUHVXOWLV                           7KHUHIRUH WKHVH DOOHJDWLRQV DUH QRW FRJQL]DEOH RQ KDEHDV
QRWLQNHHSLQJZLWKWKHVWULFWXUHVRIWKH$('3$l                                        UHYLHZ
   $VDOUHDG\PHQWLRQHGWKH7HQQHVVHH6XSUHPH&RXUWKHOG                                     6HYHUDO RI $OOH\jV RWKHU FODLPV IRU MXGLFLDO ELDV KDYH
WKDWWKHYLGHRWDSHHYLGHQFHZDVLQDGPLVVLEOHXQGHU7HQQHVVHH                               DOUHDG\EHHQFRQVLGHUHGDQGUHMHFWHGE\WKH7HQQHVVHH&RXUW
VWDWHODZXSKROGLQJWKHVWDWHWULDOFRXUWjVGHWHUPLQDWLRQWKDW                            RI&ULPLQDO$SSHDOV$OOH\6:GDW7KHVH
WKHHYLGHQFHZDVXQUHOLDEOHDQGLUUHOHYDQW7KLVFRXUWGRHV                               LQFOXGH$OOH\jVFRQWHQWLRQVWKDWsXGJH$[OH\HQJDJHGLQ
QRWKDYHWKHDXWKRULW\WRUHYLHZWKH7HQQHVVHH6XSUHPH&RXUW                               XQGLVFORVHG H[ SDUWH FRQWDFW ZLWK PHPEHUV RI WKH YLFWLP
V
RQPDWWHUVRIVWDWHODZ6HH*DOOY3DUNHU)G                               IDPLO\ZKRVHQWKLPDOHWWHUsXGJH$[OH\HQJDJHGLQH[
WK&LUm3ULQFLSOHVRIFRPLW\DQGILQDOLW\                              SDUWHFRQWDFWWKURXJKKLVZLIHjVVLWWLQJLQWKHFRXUWURRPZLWK
FRPPDQGWKDWDKDEHDVFRXUWFDQQRWUHYLVLWDVWDWHFRXUW
V                                WKHYLFWLPjVIDPLO\GXULQJWKHWULDOsXGJH$[OH\SHUPLWWHG
LQWHUSUHWDWLRQRIVWDWHODZDQGLQSDUWLFXODULQVWUXFWWKDWD                            PHPEHUVRIWKHYLFWLPjVIDPLO\WRHQWHUDKDOOZD\WKURXJK
KDEHDV FRXUW DFFHSW WKH LQWHUSUHWDWLRQ RI VWDWH ODZ E\ WKH                        ZKLFKDFFHVVFRXOGEHKDGWRWKHMXGJH
VFKDPEHUVDQGWKH
KLJKHVW VWDWH FRXUW RQ D SHWLWLRQHU
V GLUHFW DSSHDOl                             MXU\ URRP  sXGJH $[OH\ SUHVVXUHG PHQWDO KHDOWK
$FFRUGLQJO\ WKH TXHVWLRQ EHIRUH WKLV SDQHO LV ZKHWKHU WKH                         SURIHVVLRQDOVLQYROYHGLQWKHFDVHWRVSHHGXSWKHLUPHQWDO
H[FOXVLRQ RI WKH YLGHRWDSH HYLGHQFH LUUHOHYDQW DQG                                  H[DPLQDWLRQVRI$OOH\DQGsXGJH$[OH\LQFOXGHGIDOVH
LQDGPLVVLEOHXQGHUVWDWHODZZDVFRQWUDU\WRWKH 6XSUHPH                                 VWDWHPHQWVLQWKHm5XOHlUHSRUWKHSUHSDUHGDIWHUWULDODQG
&RXUWjVGHFLVLRQLQ/RFNHWW                                                               VXEPLWWHG WR WKH 7HQQHVVHH 6XSUHPH &RXUW DV SDUW RI WKH
                                                                                           GLUHFWDSSHDOSURFHVV
  7KH6XSUHPH&RXUWKDVH[SODLQHGWKHUXOHLQ/RFNHWWDQGLWV
SURJHQ\DVIROORZV                                                                          7KH VWDWH FRXUW KDYLQJ UHMHFWHG WKHVH FRQWHQWLRQV RQ WKH
                                                                                           PHULWVWKLVFRXUWFDQRQO\JUDQW$OOH\jVSHWLWLRQLIWKHVWDWH
  
>7@KH VHQWHQFHU >VKDOO@    QRW EH SUHFOXGHG IURP                           FRXUWjV GHWHUPLQDWLRQ ZDV FRQWUDU\ WR RU DQ XQUHDVRQDEOH
  FRQVLGHULQJ DV D PLWLJDWLQJ IDFWRU DQ\ DVSHFW RI D                             DSSOLFDWLRQRI6XSUHPH&RXUWFDVHODZ86&G
  GHIHQGDQW
V FKDUDFWHU RU UHFRUG DQG DQ\ RI WKH
  FLUFXPVWDQFHVRIWKHRIIHQVHWKDWWKHGHIHQGDQWSURIIHUV                                   ,QUHMHFWLQJ$OOH\jVMXGLFLDOELDVFODLPWKHVWDWHFRXUWIRXQG
  DVDEDVLVIRUDVHQWHQFHOHVVWKDQGHDWK
                                             WKDWWKHMXGJHjVUHFHLSWRIDOHWWHUIURPWKHYLFWLPjVIDPLO\
                                                                                           ZDVQRWHYLGHQFHRIELDVEHFDXVHWKHMXGJHGLGQRWUHVSRQG
6NLSSHU Y 6RXWK &DUROLQD  86    TXRWLQJ                          WRWKHOHWWHU$OOH\6:GDW6LPLODUO\WKHVWDWH
(GGLQJV86DWTXRWLQJ/RFNHWW86DW                               FRXUWIRXQGQRHYLGHQFHRIELDVLQWKHJHQHUDODFFXVDWLRQWKDW
HPSKDVLVLQRULJLQDO                                                                    WKHMXGJHjVZLIHVDWQHDUWKHYLFWLPjVIDPLO\GXULQJWULDORULQ
                                                                                           WKH SUR[LPLW\ RI WKH MXGJHjV FKDPEHUV WR DUHDV RI WKH
                                                                                           FRXUWKRXVHWRZKLFKWKHIDPLO\PHPEHUVKDGDFFHVV,ELG
                                                                                          7KHVWDWHFRXUWIRXQGQREDVLVDWDOOIRU$OOH\jVFRQWHQWLRQ
     ,Q    KLV   EULHI   $OOH\   LPSOLFLWO\   DVNV   WKLV   FRXUW   WR   RYHUWXUQ   WKH   WKDWWKHsXGJHSUHVVXUHGWKHPHQWDOKHDOWKWHDPVLQYROYHGLQ
7HQQHVVHH FRXUWjV VWDWH ODZ KROGLQJ           +H UHSHDWHGO\ DVVHUWV WKDW XQGHU
                                                                                           $OOH\jVWULDO,GDW)LQDOO\WKHVWDWHFRXUWQRWHGWKDWWKH
7HQQHVVHH ODZ WKH UXOHV RI HYLGHQFH DUH QRW DSSOLFDEOH DW VHQWHQFLQJ
KHDULQJV WKHUHIRUH DFFRUGLQJ WR $OOH\ DQG FRQWUDU\ WR WKH 7HQQHVVHH
                                                                                           5XOHUHSRUWFDQQRWIRUPWKHEDVLVIRUDQDOOHJDWLRQRIELDV
FRXUWjV KROGLQJ WKH SURIIHUHG YLGHRWDSH HYLGHQFH             ZDV DGPLVVLEOH 6HH          DVLWLVPHUHO\XVHGWRDVVLVWWKH7HQQHVVHH6XSUHPH&RXUWLQ
3HWLWLRQHUjV %ULHI DW   :H FDQ QRW VR KROG
     $OOH\Y%HOO                                    1R        1R                                    $OOH\Y%HOO     

LWVVWDWXWRU\GXW\WRUHYLHZWKHUHFRUGLQGHDWKSHQDOW\FDVHV              2Q DSSHDO $OOH\ FRQWHQGV WKDW WKH 6XSUHPH &RXUWjV
E\ SURYLGLQJ WKH MXGJHjV DQDO\VLV RI ZKDW HYLGHQFH ZDV            GHFLVLRQVLQ(GGLQJVY2NODKRPD86DQG
SUHVHQWHG  ,ELG  7KH GLVWULFW FRXUW KHOG WKDW WKHVH            /RFNHWW Y 2KLR  86   PDNH FOHDU WKDW mD
GHWHUPLQDWLRQVZHUHQHLWKHUFRQWUDU\WRQRUDQXQUHDVRQDEOH              FDSLWDOVHQWHQFLQJMXU\PD\QRWEHSUHFOXGHGIURPFRQVLGHULQJ
DSSOLFDWLRQRI6XSUHPH&RXUWFDVHODZ$OOH\)6XSS               DQ\PLWLJDWLQJHYLGHQFHSUHVHQWHGE\WKHFDSLWDOGHIHQGDQWl
GDWDQG$OOH\SUHVHQWVQRWKLQJZLWKZKLFKWRFKDOOHQJH             3HWLWLRQHUjV%ULHIDW
WKDWKROGLQJRQDSSHDO
                                                                             $VDQLQLWLDOPDWWHUZHUHMHFWWKHFRQWHQWLRQ$OOH\PDNHV
  $OOH\ GRHV FKDOOHQJH WKH GLVWULFW FRXUWjV KROGLQJ ZLWK           LQKLVEULHIWRWKLVFRXUWWKDWWKH$('3$VWDQGDUGRIUHYLHZ
UHVSHFWWRWKHWKLUGVHWRIMXGLFLDOELDVFODLPV$OOH\jVSHWLWLRQ       GRHVQRWDSSO\WRWKLVLVVXHEHFDXVHWKHVWDWHFRXUWVGLGQRW
VHWV RXW VHYHUDO FODLPV WKDW WKH GLVWULFW FRXUW KHOG ZHUH        DGMXGLFDWH $OOH\jV (LJKWK $PHQGPHQW FODLP  3HWLWLRQHUjV
SURFHGXUDOO\GHIDXOWHGEHFDXVH$OOH\KDGIDLOHGWRUDLVHWKHP            %ULHIDW7KLVLVERWKIDFWXDOO\DQGOHJDOO\LQFRUUHFW
EHIRUHWKHVWDWHFRXUWV
                                                                             $OOH\jVEULHIWRWKH7HQQHVVHH6XSUHPH&RXUWDUJXHGWKDW
   )LUVW$OOH\FRQWHQGVWKDWWKHWULDOMXGJHGHSULYHGKLPRI             WKHWULDOFRXUWHUUHGLQH[FOXGLQJWKHYLGHRWDSHVEHFDXVHWKH\
GXH SURFHVV E\ HQJDJLQJ LQ XQGLVFORVHG H[ SDUWH                    ZHUHUHOHYDQWWRPLWLJDWLRQDQG$OOH\KDGWKHFRQVWLWXWLRQDO
FRQYHUVDWLRQVZLWKWZRVWXGHQWVGXULQJKLVWULDODQGRSLQLQJ              mULJKWWRSUHVHQWDOOUHOHYDQWHYLGHQFHLQPLWLJDWLRQl  7KH
WRWKHPDIWHUWKHWULDOZDVFRPSOHWHGDERXWWKHOLNHOLKRRGWKDW           7HQQHVVHH6XSUHPH&RXUWKHOGLQUHVSRQVHWKDWWKHWDSHVGLG
$OOH\jVGHDWKVHQWHQFHZRXOGHYHUEHFDUULHGRXW7KHEDVLV              QRWFRQWDLQUHOHYDQWHYLGHQFHEHFDXVHWKHPLWLJDWLQJIDFWRUV
IRU WKLV DOOHJDWLRQ LV DQ DIILGDYLW IURP RQH RI WKH VWXGHQWV   FLWHGE\$OOH\UHTXLUHGHYLGHQFHRIPHQWDOVWDWHDWWKHWLPHRI
ZKHUHLQKHVWDWHVWKDWKHDQGDQRWKHUVWXGHQWZHUHLQYLWHGE\             WKH FULPH  7KH WDSHV RQ WKH RWKHU KDQG SURYLGHG RQO\
sXGJH$[OH\WRZDWFKWKHWULDODQGWKDWGXULQJEUHDNVWKH\               HYLGHQFH RI $OOH\jV PHQWDO VWDWH DW WKH WLPH RI WKH WDSLQJ
ZRXOGJRLQWRsXGJH$[OH\jVFKDPEHUVWRGLVFXVVWKHFDVH                  DSSUR[LPDWHO\\HDUVODWHU6LQFH$OOH\jVFRQVWLWXWLRQDO
ZLWKKLP'XULQJWKHVHGLVFXVVLRQVWKHVWXGHQWVWDWHVsXGJH            FODLP ZDV WKDW KH ZDV HQWLWOHG WR SUHVHQW DOO UHOHYDQW
$[OH\ VHHPHG XQIDYRUDEO\ GLVSRVHG WRZDUG $OOH\ DQG                  PLWLJDWLQJHYLGHQFHWKHVWDWHVXSUHPHFRXUWjVGHWHUPLQDWLRQ
DSSHDUHGQRWWREHOLHYHKLVPXOWLSOHSHUVRQDOLW\GHIHQVH7KH            WKDWWKHHYLGHQFHZDVQRWUHOHYDQWPLWLJDWLQJHYLGHQFHZDVDQ
DIILGDYLWJRHVRQWRVWDWHWKDWDIWHUWKHYHUGLFWZDVKDQGHG             DGMXGLFDWLRQRIWKDWFODLP
GRZQsXGJH$[OH\VDLGVRPHWKLQJWRWKHHIIHFWRIm>W@KHVRQ
RIDELWFKZLOOGLHRIROGDJHEHIRUHKHHYHUJRHVWRWKHFKDLUl            +RZHYHU HYHQ LI WKH 7HQQHVVHH FRXUW KDG IDLOHG WR
                                                                          DGMXGLFDWH $OOH\jV FODLP H[SOLFLWO\ ZKHQ D VWDWH FRXUW
  6HFRQG $OOH\ FODLPV WKDW sXGJH $[OH\ HQJDJHG LQ                 GHFLVLRQ DUWLFXODWHV LWV UHDVRQLQJ EXW IDLOV WR DGGUHVV WKH
XQGLVFORVHGH[SDUWHFRQYHUVDWLRQVZLWKMXURUVGXULQJWULDO              UHOHYDQW IHGHUDO VWDQGDUG WKLV FRXUW RQ KDEHDV UHYLHZ VWLOO
7KLVDOOHJDWLRQLVEDVHGRQWKHDIILGDYLWRIRQHMXURUDQGWKH           DSSOLHV $('3$ DQG GHWHUPLQHV ZKHWKHU WKH VWDWH FRXUWjV
DIILGDYLWRIDQLQYHVWLJDWRUZKRLQWHUYLHZHGDVHFRQGMXURU              GHFLVLRQZDVmµFRQWUDU\WRjFOHDUO\HVWDEOLVKHG6XSUHPH&RXUW
7KHMXURUjVDIILGDYLWVWDWHVWKDWLQUHVSRQVHWRFDOOVIURPWKH          SUHFHGHQWDVRIWKHWLPHRILWVGHFLVLRQl'RDQY%ULJDQR
MXU\m>W@KHsXGJHFDPHLQWRWKHMXU\URRPRQWZRRUWKUHH                )GWK&LUVHHDOVR+DUULVY6WRYDOO
RFFDVLRQVDQGDQVZHUHGWZRRUWKUHHTXHVWLRQVZHKDGGXULQJ              )GWK&LUIROORZLQJWKHOHDGRIRWKHU
WKHGHOLEHUDWLRQV2QHRIWKHTXHVWLRQVZHKDGFRQFHUQHGWKH             FLUFXLWV LQ KROGLQJ mWKDW ZKHUH WKH VWDWH FRXUW KDV QRW
GLIIHUHQFHEHWZHHQWKHOHVVHULQFOXGHGFKDUJHVRIPXUGHUl                DUWLFXODWHG LWV UHDVRQLQJ IHGHUDO FRXUWV DUH REOLJDWHG WR
7KHLQYHVWLJDWRUjVDIILGDYLWVWDWHVWKDWDQRWKHUMXURUWROGKHU           FRQGXFWDQLQGHSHQGHQWUHYLHZRIWKHUHFRUGDQGDSSOLFDEOH
       $OOH\Y%HOO                                       1R         1R                                    $OOH\Y%HOO        

DQGWKHWULDOFRXUWGHQLHGKLVPRWLRQ2QGLUHFWDSSHDOWRWKH                  WKDW RQ D ZHHNHQG ZKHQ WKH FRXUW ZDV QRW LQ VHVVLRQ WKH
7HQQHVVHH6XSUHPH&RXUW$OOH\DUJXHGWKDWWKLVZDVHUURU                       MXURUVKDGDSLFQLFDQGsXGJH$[OH\DQGKLVVRQVWRSSHGE\WR
EHFDXVHWKHHYLGHQFHZDVUHOHYDQWWRWZRSRWHQWLDOPLWLJDWLQJ                    VD\KHOORDQGFKHFNRQWKHMXURUV
FLUFXPVWDQFHV 7     &2'( $11  M 	 
 UHSHDOHG  3HWLWLRQHUjV %ULHI WR WKH 7HQQHVVHH                     $OOH\DOVRDOOHJHVEXWGRHVQRWGZHOOXSRQVHYHUDORWKHU
6XSUHPH &RXUW DW   +H IXUWKHU DUJXHG WKDW KH KDG D                 FODLPVRIMXGLFLDOELDVWKDWKHIDLOHGWRUDLVHEHIRUHWKHVWDWH
FRQVWLWXWLRQDOULJKWWRSUHVHQWDOOUHOHYDQWPLWLJDWLQJHYLGHQFH                FRXUWV)RULQVWDQFH$OOH\DUJXHVWKDWsXGJH$[OH\HQJDJHG
,ELG                                                                            LQXQGLVFORVHGH[SDUWHFRQWDFWZLWKPHPEHUVRIWKHYLFWLP
V
                                                                                 IDPLO\ZKRVHQWKLPD&KULVWPDVFDUG$OOH\DOVRDUJXHVWKDW
  7KH7HQQHVVHH6XSUHPH&RXUWUHMHFWHG$OOH\jVDUJXPHQW                         WKHMXGJHH[FOXGHG$OOH\jVK\SQRVLVYLGHRWDSHVRQWKHEDVLV
KROGLQJ WKDW WKH WZR FLWHG PLWLJDWLQJ IDFWRUV UHTXLUHG                    RI WKH MXGJHjV SHUVRQDO EHOLHI WKDW LW ODFNHG FUHGLELOLW\
mHYLGHQFHRIGHIHQGDQWjVFRQGLWLRQDWWKHWLPHWKHFULPHZDV                     )XUWKHU $OOH\ DUJXHV WKDW WKH MXGJH GHPRQVWUDWHG KRVWLOLW\
FRPPLWWHGl$OOH\6:GDWHPSKDVLVLQRULJLQDO                    WRZDUGKLVFRXQVHODQGXVHGSURIDQLW\WRZDUGKLP)LQDOO\
7KH FRXUW KHOG WKDW WKH YLGHR FRQWDLQHG mQR HYLGHQFH                     $OOH\DOOHJHVWKDWWKHMXGJHH[SUHVVHGUHOLHIXSRQVHQWHQFLQJ
ZKDWHYHURIGHIHQGDQWjVPHQWDORUHPRWLRQDOVWDWHRUKLV                   $OOH\WRGHDWK
DELOLW\ RU ODFN RI DELOLW\ WR DSSUHFLDWH ULJKW IURP ZURQJ RU
FRQWUROKLVFRQGXFWRQWKHHYHQLQJRIsXO\l,ELG                        7KHVH DOOHJDWLRQV IDLO WR SUHVHQW D YLDEOH FODLP RI
7KHFRXUWDOVRKHOGPRUHJHQHUDOO\WKDWoMXVWDVLQWKHJXLOW                 FRQVWLWXWLRQDOO\LPSHUPLVVLEOHMXGLFLDOELDV)LUVWH[SDUWH
SKDVHoWKHWULDOFRXUWGLGQRWDEXVHLWVGLVFUHWLRQLQZHLJKLQJ                 FRQWDFWGRHVQRWLQLWVHOIHYLGHQFHDQ\NLQGRIELDV)XUWKHU
DQGH[FOXGLQJWKHYLGHRWDSHHYLGHQFHDWWKHVHQWHQFLQJSKDVH                    WKHRSLQLRQVsXGJH$[OH\LVDOOHJHGWRKDYHH[SUHVVHGoDQ
$VH[SODLQHGDERYHWKHWULDOFRXUWKDGYLHZHGWKHWDSHVDQG                     XQIDYRUDEOH GLVSRVLWLRQ WRZDUG $OOH\ D EHOLHI WKDW $OOH\
KDGKHOGWKDWWKH\ZHUHXQUHOLDEOHDQGVLQFHWKH\SURYLGHGQR                   ZRXOG QHYHU DFWXDOO\ EH SXW WR GHDWK DQG KRVWLOLW\ WRZDUG
LQIRUPDWLRQDERXWWKHGD\RIWKHPXUGHULUUHOHYDQW                             $OOH\jVWULDOFRXQVHOoDOODURVHIURPZKDWKDSSHQHGDWWULDO
                                                                                 ([FHSW LQ H[WUHPH FDVHV WR EH DFWLRQDEOH ELDV PXVW VWHP
   2Q KDEHDV UHYLHZ WKH GLVWULFW FRXUW DJUHHG ZLWK WKH                  IURPDQH[WUDMXGLFLDOVRXUFH
7HQQHVVHH6XSUHPH&RXUW,WKHOGWKDWWKHUHZDVQRHYLGHQFH
WR VXSSRUW $OOH\jV FODLP WKDW WKH YLGHR FRQWDLQHG UHOHYDQW                 >2@SLQLRQV IRUPHG E\ WKH MXGJH RQ WKH EDVLV RI IDFWV
PLWLJDWLQJ HYLGHQFH  (YHQ LI WKHUH ZHUH VXFK HYLGHQFH                    LQWURGXFHG RU HYHQWV RFFXUULQJ LQ WKH FRXUVH RI WKH
KRZHYHUWKHFRXUWKHOGPHULWOHVV$OOH\jVFRQWHQWLRQWKDWmD                       FXUUHQW SURFHHGLQJV RU RI SULRU SURFHHGLQJV GR QRW
VWDWHFRXUWFDQQRWH[FOXGHLQDGPLVVLEOHRULUUHOHYDQWHYLGHQFH                     FRQVWLWXWHDEDVLVIRUDELDVRUSDUWLDOLW\PRWLRQXQOHVV
IURPDGHDWKSHQDOW\KHDULQJl$OOH\)6XSSGDW                     WKH\GLVSOD\DGHHSVHDWHGIDYRULWLVPRUDQWDJRQLVPWKDW
                                                                                   ZRXOG PDNH IDLU MXGJPHQW LPSRVVLEOH 7KXV MXGLFLDO
                                                                                   UHPDUNVGXULQJWKHFRXUVHRIDWULDOWKDWDUHFULWLFDORU
                                                                                   GLVDSSURYLQJRIRUHYHQKRVWLOHWRFRXQVHOWKHSDUWLHV
     
                                                                                   RU WKHLU FDVHV RUGLQDULO\ GR QRW VXSSRUW D ELDV RU
      $W WKH WLPH 7     &   
                                    $      M SURYLGHG IRU D         SDUWLDOLW\ FKDOOHQJH 7KH\ PD\ GR VR LI WKH\ UHYHDO DQ
PLWLJDWLQJ FLUFXPVWDQFH ZKHQ WKH GHIHQGDQW ZDV XQGHU WKH LQIOXHQFH RI              RSLQLRQ WKDW GHULYHV IURP DQ H[WUDMXGLFLDO VRXUFH DQG
H[WUHPH PHQWDO DQG HPRWLRQDO GLVWXUEDQFH DQG 7      &   
                                                                $      
                                                                                   WKH\ ZLOO GR VR LI WKH\ UHYHDO VXFK D KLJK GHJUHH RI
M ZDV DSSOLFDEOH LQ FDVHV RI VXEVWDQWLDO LPSDLUPHQW RI WKH
GHIHQGDQWjV DSSUHFLDWLRQ RI WKH ZURQJIXOQHVV RI KLV FRQGXFW DV D UHVXOW RI
                                                                                   IDYRULWLVP RU DQWDJRQLVP DV WR PDNH IDLU MXGJPHQW
D PHQWDO GLVHDVH GHIHFW RU LQWR[LFDWLRQ LQVXIILFLHQW WR HVWDEOLVK D GHIHQVH      LPSRVVLEOH
WR WKH FULPH 7  &    
                             $        UHSHDOHG
       $OOH\Y%HOO                                         1R         1R                                     $OOH\Y%HOO     

/LWHN\86DW1RQHRI$OOH\jVDOOHJDWLRQVFRPH                         H[FOXVLRQRIWKHWDSHVZDVQRWDUELWUDU\PHFKDQLVWLFSHUVH
FORVHWRVWDWLQJDFODLPIRUMXGLFLDOELDV                                        RUGLVSURSRUWLRQDWHWRWKHFRQFHUQRIWKHWULDOFRXUWDQGWKH
                                                                                   UXOHWKDWWKHWDSHVZHUHXQUHOLDEOHFRQIXVLQJDQGLUUHOHYDQW
   0RUHLPSRUWDQWO\KRZHYHUWKHVHFODLPVDUHSURFHGXUDOO\
GHIDXOWHG  $V H[SODLQHG DERYH XQH[KDXVWHG FODLPV WKDW                       ,WLVZHOOVHWWOHGWKDWWKH&RQVWLWXWLRQGRHVQRWJXDUDQWHHD
ZRXOGEHEDUUHGE\DVWDWHUXOHDUHSURFHGXUDOO\GHIDXOWHGDQG                     GHIHQGDQWWKHRSSRUWXQLW\WRSUHVHQWDQ\HYLGHQFHKHGHVLUHV
RUGLQDULO\PD\QRWEHFRQVLGHUHGE\DIHGHUDOFRXUWRQKDEHDV
UHYLHZ6H\PRXU)GDW,QWKHSUHVHQWFDVH                          )HZULJKWVDUHPRUHIXQGDPHQWDOWKDQWKDWRIDQDFFXVHG
$OOH\jVFODLPVZRXOGEHEDUUHGERWKE\7HQQHVVHHjVRQH\HDU                          WRSUHVHQWZLWQHVVHVLQKLVRZQGHIHQVH,QWKHH[HUFLVH
SRVWFRQYLFWLRQVWDWXWHRIOLPLWDWLRQV7(11 &2'( $11                        RIWKLVULJKWWKHDFFXVHGDVLVUHTXLUHGRIWKH6WDWHPXVW
DQGE\WKHVWDWHjVSRVWFRQYLFWLRQZDLYHUUXOH7      (11                   FRPSO\ZLWKHVWDEOLVKHGUXOHVRISURFHGXUHDQGHYLGHQFH
&2'( $11IJ$VDOVRH[SODLQHGDERYHLQ                          GHVLJQHG WR DVVXUH ERWK IDLUQHVV DQG UHOLDELOLW\ LQ WKH
RUGHUIRUDSHWLWLRQHUWRRYHUFRPHDSURFHGXUDOGHIDXOWDQG                          DVFHUWDLQPHQWRIJXLOWDQGLQQRFHQFH
UHFHLYH IHGHUDO KDEHDV UHYLHZ RI WKDW FODLP KH PXVW VKRZ
FDXVHIRUWKHGHIDXOWDQGSUHMXGLFHUHVXOWLQJIURPLWRUWKDW                     &KDPEHUV  86 DW  FLWDWLRQV RPLWWHG VHH DOVR
HQIRUFLQJ WKH SURFHGXUDO GHIDXOW LQ KLV FDVH ZLOO HIIHFW D                &UDQH  86 DW  m>:@H KDYH QHYHU TXHVWLRQHG WKH
PLVFDUULDJHRIMXVWLFH:DLQZULJKW86                       SRZHURI6WDWHVWRH[FOXGHHYLGHQFHWKURXJKWKHDSSOLFDWLRQ
&DXVHIRUDSURFHGXUDOGHIDXOWmPXVWEHVRPHWKLQJH[WHUQDO                         RI HYLGHQWLDU\ UXOHV WKDW WKHPVHOYHV VHUYH WKH LQWHUHVWV RI
WRWKHSHWLWLRQHUVRPHWKLQJWKDWFDQQRWIDLUO\EHDWWULEXWHGWR                   IDLUQHVVDQGUHOLDELOLW\oHYHQLIWKHGHIHQGDQWZRXOGSUHIHUWR
KLPl&ROHPDQ86DW$OOH\PDNHVQRDWWHPSWRQ                        VHHWKHHYLGHQFHDGPLWWHGl,WLVWKHUHIRUHFOHDUWKDWmHYHQ
DSSHDOWRPDNHDFDXVHDQGSUHMXGLFHRUPLVFDUULDJHRIMXVWLFH                     UHOHYDQW HYLGHQFH PD\ FRQVWLWXWLRQDOO\ EH H[FOXGHG µLI LWV
VKRZLQJ                                                                           SUREDWLYHYDOXHLVVXEVWDQWLDOO\RXWZHLJKHGE\WKHGDQJHURI
                                                                                   XQIDLUSUHMXGLFHFRQIXVLRQRIWKHLVVXHVRUPLVOHDGLQJWKH
  ,QVWHDG$OOH\DUJXHVWKDWKHLVHQWLWOHGWRDQHYLGHQWLDU\                      MXU\jl  6DQGHUV Y )UHHPDQ  )G   WK &LU
KHDULQJLQWKHGLVWULFWFRXUWWRIXUWKHUGHYHORSKLVMXGLFLDOELDV                 TXRWLQJ)(' 5 (9,'DQG7(11 5 (9,'
FODLP  7KH GLVWULFW FRXUW GHFOLQHG WR KROG DQ HYLGHQWLDU\                5DWKHU WKDQ DSSO\ DQ DUELWUDU\ PHFKDQLVWLF SHU VH RU
KHDULQJRQ$OOH\jVFODLPV$OOH\)6XSSGDW:H                     GLVSURSRUWLRQDWHUXOHWKDWZRXOGKDYHEHHQFRQWUDU\WRFOHDUO\
                                                                                   HVWDEOLVKHG6XSUHPH&RXUWFDVHODZWKHVWDWHFRXUWLQ$OOH\jV
                                                                                   FDVHZHLJKHGWKHYDOXHRIWKHHYLGHQFHDJDLQVWLWVSRWHQWLDO
     
                                                                                   IRU FRQIXVLRQ DQG XQUHOLDELOLW\ DQG H[FOXGHG LW  ,Q WKHVH
        7      
                &      $       UHDGV LQ UHOHYDQW SDUW                 FLUFXPVWDQFHVZHFDQQRWJUDQWDZULWRIKDEHDVFRUSXV
I     ,I WKH IDFWV DOOHJHG >LQ D SRVWFRQYLFWLRQ SHWLWLRQ@ WDNHQ DV WUXH
IDLO WR VKRZ WKDW    WKH FODLPV IRU UHOLHI KDYH QRW EHHQ ZDLYHG RU                     ([FOXVLRQRI(YLGHQFHDWWKH6HQWHQFLQJ3KDVH
SUHYLRXVO\ GHWHUPLQHG WKH SHWLWLRQ VKDOO EH GLVPLVVHG    
J $ JURXQG IRU UHOLHI LV ZDLYHG LI WKH SHWLWLRQHU SHUVRQDOO\ RU WKURXJK DQ
DWWRUQH\ IDLOHG WR SUHVHQW LW IRU GHWHUPLQDWLRQ LQ DQ\ SURFHHGLQJ EHIRUH D
                                                                                     $OOH\QH[WDUJXHVWKDWHYHQLIKLVFRQVWLWXWLRQDOULJKWVZHUH
FRXUW RI FRPSHWHQW MXULVGLFWLRQ LQ ZKLFK WKH JURXQG FRXOG KDYH EHHQ                QRW YLRODWHG E\ WKH WULDO FRXUWjV H[FOXVLRQ RI WKH YLGHRWDSH
SUHVHQWHG XQOHVV                                                                  HYLGHQFHDWWKHJXLOWSKDVHRIKLVWULDOWKH\ZHUHYLRODWHGE\
 7KH FODLP IRU UHOLHI LV EDVHG XSRQ D FRQVWLWXWLRQDO ULJKW QRW UHFRJQL]HG       WKHFRXUWjVH[FOXVLRQRIWKHHYLGHQFHDWWKHVHQWHQFLQJSKDVH
DV H[LVWLQJ DW WKH WLPH RI WULDO LI HLWKHU WKH IHGHUDO RU VWDWH FRQVWLWXWLRQ
UHTXLUHV UHWURDFWLYH DSSOLFDWLRQ RI WKDW ULJKW RU
 7KH IDLOXUH WR SUHVHQW WKH JURXQG ZDV WKH UHVXOW RI VWDWH DFWLRQ LQ
                                                                                     $WWKHEHJLQQLQJRIKLVVHQWHQFLQJKHDULQJ$OOH\PRYHGIRU
YLRODWLRQ RI WKH IHGHUDO RU VWDWH FRQVWLWXWLRQ
                                                                                   DGPLVVLRQRIWKHK\SQRVLVDQG6RGLXP$P\WDOYLGHRWDSHV
    $OOH\Y%HOO                                 1R       1R                                     $OOH\Y%HOO     

)LQDOO\WKHUXOHXQGHUZKLFKWKHHYLGHQFHZDVH[FOXGHGLVQRW        UHYLHZDGLVWULFWFRXUWjVGHFLVLRQQRWWRFRQGXFWDQHYLGHQWLDU\
GLVSURSRUWLRQDWH WR WKH FRQFHUQV LW LV LQWHQGHG WR DGGUHVV   KHDULQJIRUDQDEXVHRIGLVFUHWLRQ/RWWY&R\OH)G
EHFDXVH E\ FRQVLGHULQJ DQG ZHLJKLQJ SLHFHV RI HYLGHQFH         WK&LU
LQGLYLGXDOO\ LW DYRLGV RYHUEUHDGWK DQG WKH LQFLGHQWDO
H[FOXVLRQRIHYLGHQFHWKDWLVUHOLDEOHDQGUHOHYDQW                    7KH RQO\ EDVLV $OOH\ RIIHUV IRU RYHUWXUQLQJ WKH GLVWULFW
                                                                      FRXUWjVGHFLVLRQLVKLVFRQWHQWLRQWKDWKHPHULWVDQHYLGHQWLDU\
   5HO\LQJRQD1LQWK&LUFXLWFDVHFROOHFWLQJWKHVH6XSUHPH           KHDULQJEDVHGRQWKH6XSUHPH&RXUWjVGHFLVLRQLQ0LFKDHO
&RXUW FDVHV $OOH\ DUJXHV WKDW D GHIHQGDQWjV ULJKWV DUH       :LOOLDPVY7D\ORU86ZKLFKZDVGHFLGHG
YLRODWHGDQ\WLPHDVWDWHHYLGHQWLDU\UXOLQJH[FOXGHVDSLHFH         DIWHU WKH GLVWULFW FRXUWjV GHFLVLRQ LQ WKH SUHVHQW FDVH
RI HYLGHQFH FULWLFDO WR WKH GHIHQVH  6HH 'H3HWULV Y        +RZHYHU :LOOLDPV LV LQDSSOLFDEOH WR $OOH\jV FDVH
.X\NHQGDOO  )G   WK &LU  m7KH         DFFRUGLQJO\WKHGLVWULFWFRXUWGLGQRWDEXVHLWVGLVFUHWLRQLQ
6XSUHPH&RXUWKDVPDGHFOHDUWKDWWKHHUURQHRXVH[FOXVLRQRI          GHFLGLQJQRWWRFRQGXFWDQHYLGHQWLDU\KHDULQJRQWKLVLVVXH
FULWLFDOFRUURERUDWLYHGHIHQVHHYLGHQFHPD\YLRODWHERWKWKH
)LIWK $PHQGPHQW GXH SURFHVV ULJKW WR D IDLU WULDO DQG WKH     ,IDKDEHDVSHWLWLRQHUKDVmIDLOHGWRGHYHORSWKHIDFWXDOEDVLV
6L[WK $PHQGPHQW ULJKW WR SUHVHQW D GHIHQVHl  %XW VHH      RI D FODLP LQ 6WDWH FRXUW SURFHHGLQJVl KH FDQ RQO\ JHW DQ
/D*UDQG Y 6WHZDUW  )G   WK &LU       HYLGHQWLDU\KHDULQJLQIHGHUDOGLVWULFWFRXUWRQWKDWFODLPLQ
m7KHVHFDVHVWDNHQWRJHWKHUVWDQGIRUWKHSURSRVLWLRQWKDW         H[WUHPHO\ QDUURZ FLUFXPVWDQFHV   86&  H
VWDWHVPD\QRWLPSHGHDGHIHQGDQW
VULJKWWRSXWRQDGHIHQVH         7KHSHWLWLRQHUPXVWVKRZWKDW
E\ LPSRVLQJ PHFKDQLVWLF &KDPEHUV RU DUELWUDU\
:DVKLQJWRQDQG5RFNUXOHVRIHYLGHQFHl                             $WKHFODLPUHOLHVRQ
                                                                        LDQHZUXOHRIFRQVWLWXWLRQDOODZPDGHUHWURDFWLYHWR
  +RZHYHUWKHHYLGHQFHH[FOXGHGLQWKLVFDVHGLGQRWWDNH              FDVHV RQ FROODWHUDO UHYLHZ E\ WKH 6XSUHPH &RXUW WKDW
WKH OHJV RXW IURP XQGHU $OOH\jV GHIHQVH  +LV GHIHQVH ZDV     ZDVSUHYLRXVO\XQDYDLODEOHRU
EDVHGRQWKHIDFWWKDWKHVXIIHUHGIURPPXOWLSOHSHUVRQDOLW\            LL D IDFWXDO SUHGLFDWH WKDW FRXOG QRW KDYH EHHQ
GLVRUGHU DQG DPRQJ RWKHU HYLGHQFH $OOH\ SUHVHQWHG WZR         SUHYLRXVO\ GLVFRYHUHG WKURXJK WKH H[HUFLVH RI GXH
GRFWRUV ZKR WHVWLILHG WR WKDW  %RWK GLVFXVVHG $OOH\jV          GLOLJHQFHDQG
FRQGLWLRQ LQ GHWDLO DQG VXSSRUWHG WKHLU FRQFOXVLRQV ZLWK         %WKHIDFWVXQGHUO\LQJWKHFODLPZRXOGEHVXIILFLHQWWR
H[WHQVLYHGLVFXVVLRQRI$OOH\jVFDVHKLVFKLOGKRRGDQGKLV            HVWDEOLVKE\FOHDUDQGFRQYLQFLQJHYLGHQFHWKDWEXWIRU
DGXOWOLIH                                                           FRQVWLWXWLRQDOHUURUQRUHDVRQDEOHIDFWILQGHUZRXOGKDYH
                                                                        IRXQGWKHDSSOLFDQWJXLOW\RIWKHXQGHUO\LQJRIIHQVH
   )XUWKHU$OOH\GRHVQRWRIIHUDFKDOOHQJHWRWKHYDOLGLW\RI
WKH WULDO FRXUWjV FRQFHUQ WKDW WKH YLGHRWDSH HYLGHQFH ZDV     ,ELG+RZHYHULQ:LOOLDPVWKH&RXUWKHOG
SRWHQWLDOO\FRQIXVLQJDQGXQUHOLDEOH7KHIDFWWKDWWKHGRFWRUV
ZHUHQRWSHUPLWWHGWRVKRZRUUHIHUWRLQFRXUWWKHGHWDLOVRI          8QGHUWKH RSHQLQJFODXVHRIHDIDLOXUHWR
WKHUDZGDWDXSRQZKLFKWKH\EDVHGWKHLURSLQLRQEHFDXVHWKH           GHYHORS WKH IDFWXDO EDVLV RI D FODLP LV QRW HVWDEOLVKHG
VWDWHFRXUWUHDVRQHGWKDWWKHGDWDZRXOGEHWRRFRQIXVLQJDQG           XQOHVVWKHUHLVODFNRIGLOLJHQFHRUVRPHJUHDWHUIDXOW
XQUHOLDEOHPD\RUPD\QRWKDYHEHHQHUURU+RZHYHUWKH               DWWULEXWDEOHWRWKHSULVRQHURUWKHSULVRQHU
VFRXQVHO
                                                                      :LOOLDPV86DWHPSKDVLVDGGHG$FFRUGLQJO\
                                                                      WKH &RXUW KHOG WKDW SHWLWLRQHUV QHHG QRW PHHW WKH VWULFW
WKLV FRQWHQWLRQ
                                                                      UHTXLUHPHQWVIRUDQHYLGHQWLDU\KHDULQJVHWRXWLQH
    $OOH\Y%HOO                                   1R       1R                                         $OOH\Y%HOO      

LQ FDVHV ZKHUH WKH IDLOXUH WR GHYHORS WKH QHFHVVDU\ IDFWXDO    FRQIHVVLRQGHSULYHGKLPRIDIDLUWULDOl,GDWFLWLQJ
EDVLV RI D FODLP LQ VWDWH FRXUW ZDV QRW GXH WR D ODFN RI   &KDPEHUV86DW
GLOLJHQFHRQWKHSHWLWLRQHUjVSDUW,ELG7KH&RXUWZHQWRQWR
H[SODLQ WKDW ZKHWKHU D SHWLWLRQHU H[HUFLVHG WKH GLOLJHQFH          ,Q5RFNWKH&RXUWZURWHWKDWDm6WDWH
VOHJLWLPDWHLQWHUHVW
QHFHVVDU\ WR SUHVHUYH D FODLP mGHSHQGV XSRQ ZKHWKHU WKH         LQ EDUULQJ XQUHOLDEOH HYLGHQFH GRHV QRW H[WHQG WR SHU VH
SULVRQHU PDGH D UHDVRQDEOH DWWHPSW LQ OLJKW RI WKH             H[FOXVLRQVWKDWPD\EHUHOLDEOHLQDQLQGLYLGXDOFDVHl
LQIRUPDWLRQDYDLODEOHDWWKHWLPHWRLQYHVWLJDWHDQGSXUVXH            86DW7KH&RXUWFLWHG:DVKLQJWRQDQG&KDPEHUVDQG
FODLPVLQVWDWHFRXUWl,GDW                                    KHOGWKDWmUHVWULFWLRQVRIDGHIHQGDQW
VULJKWWRWHVWLI\PD\QRW
                                                                        EH DUELWUDU\ RU GLVSURSRUWLRQDWH WR WKH SXUSRVHV WKH\ DUH
   ,Q:LOOLDPVWKHSURVHFXWRUDWWULDOKDGUHSUHVHQWHGDMXURU         GHVLJQHGWRVHUYHl,GDW
LQ KHU GLYRUFH SURFHHGLQJ EXW QHLWKHU WKH MXURU QRU WKH
SURVHFXWRUVSRNHXSDWYRLUGLUHZKHQWKHMXURUVZHUHDVNHG               )LQDOO\LQ6FKHIIHUWKH&RXUWFRQVLGHUHGDEODQNHWUXOHRI
LI WKH\ NQHZ DQ\ RI WKH ODZ\HUV LQYROYHG  ,G DW     HYLGHQFH LQ PLOLWDU\ FRXUWV WKDW H[FOXGHG DOO SRO\JUDSK
:LOOLDPVjV DWWRUQH\V GLG QRW ILQG RXW DERXW WKLV XQWLO WKH     HYLGHQFH86DW7KH6XSUHPH&RXUWXSKHOGHYHQ
IHGHUDOKDEHDVVWDJHKRZHYHUWKH&RXUWKHOGWKDW:LOOLDPV             WKLVEODQNHWUXOHEHFDXVHLWGLGQRWHYLVFHUDWHWKHGHIHQGDQWjV
ZDVHQWLWOHGWRDKHDULQJRQWKHFODLPEHFDXVHWKHIDFWWKDW           GHIHQVH  ,G DW   7KRXJK 6FKHIIHU LV QRW GLUHFWO\
WKHHYLGHQFHZDVQRWGHYHORSHGHDUOLHUZDVVROHO\WKHIDXOWRI          UHOHYDQWLQWKLVFDVHEHFDXVHLWFDPHRXWORQJDIWHUWKHVWDWH
WKHUHWLFHQWMXURUDQGSURVHFXWRU,GDW:LOOLDPVWKH       FRXUWGHFLVLRQVDWLVVXHLQ$OOH\jVSHWLWLRQWKH6FKHIIHU&RXUW
&RXUW KHOG KDG QRW H[KLELWHG D mODFN RI GLOLJHQFHl ZLWK       UHFRQILUPHGWKDWDSSOLFDWLRQRIHYLGHQWLDU\UXOHVmGR>HV@QRW
UHVSHFWWRWKHFODLP,GDW                                    DEULGJHDQDFFXVHGjVULJKWWRSUHVHQWDGHIHQVHVRORQJDVWKH\
                                                                        DUHQRWµDUELWUDU\jRUµGLVSURSRUWLRQDWHWRWKHSXUSRVHVWKH\
   &RQWUDU\WRWKHSHWLWLRQHULQ:LOOLDPVZKRKDGQRUHDVRQ            DUHGHVLJQHGWRVHUYHjl,GDWTXRWLQJ5RFN86DW
WRVXVSHFWWKDWWKHMXURUZRXOGNQRZWKHSURVHFXWRUDQGWKXV            
SRWHQWLDOO\EHELDVHG$OOH\KDGHYHU\UHDVRQWRVXVSHFWWKDW
sXGJH$[OH\ZDVDOOHJHGO\ELDVHGDJDLQVWKLP,QGHHGDVWKH             ,QVKRUWWKHVWDWHFRXUWjVH[FOXVLRQ RI$OOH\jVYLGHRWDSH
GLVWULFWFRXUWLQWKLVFDVHSRLQWHGRXWmMXGLFLDOELDVKDVEHHQ        HYLGHQFHZDVQRWFRQWUDU\WRWKHFOHDUO\HVWDEOLVKHGODZRIWKH
WKH SHWLWLRQHUjV ZDWFKZRUG HYHU VLQFH KH ZDV FRQYLFWHGl         FDVHV$OOH\FLWHVEHFDXVHWKHH[FOXVLRQZDVQRWEDVHGRQDQ
$OOH\)6XSSGDW$OOH\DOOHJHGMXGLFLDOELDVDV          DUELWUDU\ PHFKDQLVWLF RU SHU VH DSSOLFDWLRQ RI WKH VWDWHjV
DFHQWUDOLVVXHLQKLVILUVWVWDWHSRVWFRQYLFWLRQSHWLWLRQ$OOH\     HYLGHQWLDU\ UXOHV DQG LW ZDV QRW GLVSURSRUWLRQDWH WR WKH
JRWDQHYLGHQWLDU\KHDULQJRQWKLVLVVXHDPRQJRWKHUVZKHQ            SXUSRVHVEHKLQGLW,WZDVFOHDUO\QRWPHFKDQLVWLFRUSHUVH
WKHFRXUWRIDSSHDOVYDFDWHGsXGJH$[OH\jVGHQLDORI$OOH\jV            DV WKH FRXUW PDGH DQ LQGLYLGXDO GHWHUPLQDWLRQ o DIWHU
SRVWFRQYLFWLRQ SHWLWLRQ DQG UHPDQGHG KLV FDVH WR D QHZ         ZDWFKLQJWKHYLGHRVDQGEDVHGRQWKHIDFWVVSHFLILFWR$OOH\jV
MXGJH$WWKDWKHDULQJ$OOH\UDLVHGWKHILYHFODLPVRIMXGLFLDO       FDVH o WKDW WKH OLNHO\ SUHMXGLFH IURP DGPLWWLQJ WKH WDSHV
ELDVGLVFXVVHGDERYHDQGSUHVHQWHGWHVWLPRQ\DQGHYLGHQFHWR            RXWZHLJKHGWKHLUSUREDWLYHYDOXH,WZDVQRWDUELWUDU\DVWKH
VXSSRUW WKRVH FODLPV  7KH &RXUW LQ :LOOLDPV KHOG WKDW         UXOLQJ DSSOLHG WR ERWK WKH SURVHFXWLRQ DQG WKH GHIHQVH
ZKHWKHU D SHWLWLRQHU ZDV VXIILFLHQWO\ GLOLJHQW WR SUHVHUYH D
FODLPmGHSHQGVXSRQZKHWKHUWKHSULVRQHUPDGHDUHDVRQDEOH
DWWHPSWLQOLJKWRIWKHLQIRUPDWLRQDYDLODEOHDWWKHWLPHWR              
                                                                              $OOH\ FRQWHQGV ZLWKRXW UHIHUHQFH WR VSHFLILF H[DPSOHV WKDW WKH
LQYHVWLJDWH DQG SXUVXH FODLPV LQ VWDWH FRXUWl  ,G DW     UXOLQJ ZDV DUELWUDU\ LQ WKDW SURVHFXWLRQ ZLWQHVVHV ZHUH SHUPLWWHG WR UHIHU
HPSKDVLV DGGHG  *LYHQ $OOH\jV DZDUHQHVV RI DOOHJHG            WR WKH YLGHRWDSHV LQ ZD\V WKDW GHIHQVH ZLWQHVVHV ZHUH QRW 3HWLWLRQHUjV
                                                                        %ULHI DW  +RZHYHU D UHYLHZ RI WKH UHFRUG VLPSO\ GRHV QRW VXSSRUW
    $OOH\Y%HOO                                   1R       1R                                      $OOH\Y%HOO      

SHWLWLRQHUjVGXHSURFHVVULJKWVDUHYLRODWHGDQ\WLPHDVWDWH           MXGLFLDOELDVRQWKHSDUWRIsXGJH$[OH\DQGLQGHHGWKHIDFW
FRXUW H[FOXGHV HYLGHQFH WKDW WKH SHWLWLRQHU EHOLHYHV LV WKH     WKDW$OOH\UHFHLYHGDQHYLGHQWLDU\KHDULQJLQVWDWHFRXUW$OOH\
FHQWHUSLHFHRIKLVGHIHQVH,QVWHDGWKHFDVHV$OOH\FLWHVVWDQG       VKRXOG KDYH FRQGXFWHG IXUWKHU LQYHVWLJDWLRQ DW WKDW WLPH
IRU WKH PRUH OLPLWHG SURSRVLWLRQ WKDW D GHIHQGDQWjV GXH         m>,@QOLJKWRIWKHLQIRUPDWLRQDYDLODEOHDWWKHWLPHl$OOH\FDQ
SURFHVV ULJKWV DUH YLRODWHG ZKHQ D VWDWH FRXUW H[FOXGHV         EHFUHGLWHGZLWKWKHUHVSRQVLELOLW\WRKDYHFRPHXSZLWKWKHVH
LPSRUWDQWHYLGHQFHRQWKHEDVLVRIDQDUELWUDU\PHFKDQLVWLF           DGGLWLRQDOEDVHVHDUOLHU,ELG
RUSHUVHUXOHRURQHWKDWLVGLVSURSRUWLRQDWHWRWKHSXUSRVHV
LWLVGHVLJQHGWRVHUYH                                                 $FFRUGLQJO\ WKH UXOH VHW RXW LQ :LOOLDPV GRHV QRW VDYH
                                                                        $OOH\IURPWKHVWULFWUHTXLUHPHQWVIRUDQHYLGHQWLDU\KHDULQJ
   ,Q:DVKLQJWRQD7H[DVSULVRQHUZDVQRWSHUPLWWHGDWWULDO           VHWRXWLQH6HH0RVVY+RIEDXHU)G
WR SUHVHQW WKH WHVWLPRQ\ RI D FRFRQVSLUDWRU WKDW WHQGHG WR     WK &LU  H[SODLQLQJ WKDW :LOOLDPV PDNHV
VKRZ WKDW KH ZDV LQQRFHQW EHFDXVH RI D 7H[DV VWDWXWH WKDW     HLQDSSOLFDEOHZKHQWKHSHWLWLRQHUH[HUFLVHGWKH
SURKLELWHG FRFRQVSLUDWRUV IURP WHVWLI\LQJ IRU HDFK RWKHU        QHFHVVDU\ GLOLJHQFH WR GHYHORS WKH IDFWXDO UHFRUG LQ VWDWH
DOWKRXJKWKH\ZHUHSHUPLWWHGWRWHVWLI\IRUWKHSURVHFXWLRQ            FRXUW *UHHU Y 0LWFKHOO  )G   WK &LU
 86 DW   7KH 6XSUHPH &RXUW UHYHUVHG WKH             VDPH7KHUHIRUHVLQFH$OOH\GRHVQRWHYHQFRQWHQG
SULVRQHUjV FRQYLFWLRQ RQ WKH JURXQG WKDW 7H[DVjV UXOH            WKDWKHFDQIXOILOOWKHUHTXLUHPHQWVIRUDQHYLGHQWLDU\KHDULQJ
mDUELWUDULO\lGHSULYHGKLPRIKLVULJKWWRSUHVHQWZLWQHVVHVLQ         VHW RXW LQ  H WKH GLVWULFW FRXUW FHUWDLQO\ GLG QRW
KLVGHIHQVH,GDW                                              DEXVHLWVGLVFUHWLRQLQUHIXVLQJWRKROGRQH
   ,Q &KDPEHUV WKH 6XSUHPH &RXUW UHYHUVHG D 0LVVLVVLSSL                             ([3DUWH&RQWDFW&ODLPV
VWDWHFRXUWFRQYLFWLRQZKHQRQWKHEDVLVRIWKHVWDWHjVKHDUVD\
UXOHWKHVWDWHFRXUWUHIXVHGWRDGPLWWHVWLPRQ\WKDWVRPHRQH             ,QDGGLWLRQWRDUJXLQJWKDWsXGJH$[OH\jVDOOHJHGH[SDUWH
HOVHKDGFRPPLWWHGWKHFULPH86DW7KH&RXUW           FRQWDFWV ZLWK WKH MXURUV VKRZHG MXGLFLDO ELDV $OOH\ DOVR
QRWHG WKDW WKH SURIIHUHG WHVWLPRQ\ ZDV WUXVWZRUWK\ DQG           FRQWHQGV WKDW WKH DOOHJHG FRQWDFWV YLRODWHG $OOH\jV
DGPLVVLEOHXQGHUDFRPPRQH[FHSWLRQWRWKHKHDUVD\UXOHQRW             FRQVWLWXWLRQDOULJKWmWRSHUVRQDOSUHVHQFHDWDOOFULWLFDOVWDJHV
DGRSWHGLQ0LVVLVVLSSLDQGZURWHm7KDWWHVWLPRQ\DOVRZDV            RI>KLV@WULDOl5XVKHQY6SDLQ86
FULWLFDOWR&KDPEHUV
GHIHQVH,QWKHVHFLUFXPVWDQFHVZKHUH           $VWKHGLVWULFWFRXUWSRLQWHGRXW$OOH\SURFHGXUDOO\GHIDXOWHG
FRQVWLWXWLRQDO ULJKWV GLUHFWO\ DIIHFWLQJ WKH DVFHUWDLQPHQW RI     WKLVFODLPE\IDLOLQJWRUDLVHLWLQWKHVWDWHFRXUW$OOH\)
JXLOW DUH LPSOLFDWHG WKH KHDUVD\ UXOH PD\ QRW EH DSSOLHG      6XSSGDW
PHFKDQLVWLFDOO\ WR GHIHDW WKH HQGV RI MXVWLFHl  ,G DW 
HPSKDVLVDGGHG                                                        sXVWDVLQWKHSUHYLRXVLVVXH$OOH\GRHVQRWDUJXHFDXVHDQG
                                                                        SUHMXGLFHRUPLVFDUULDJHRIMXVWLFHWRH[FXVHKLVGHIDXOWEXW
   ,Q &UDQH D VWDWH FRXUW DIWHU KROGLQJ WKDW D GHIHQGDQWjV   LQVWHDGDUJXHVWKDWKHPHULWVDQHYLGHQWLDU\KHDULQJRQWKH
FRQIHVVLRQZDVYROXQWDU\H[FOXGHGDOOHYLGHQFHZLWKUHVSHFW            PDWWHUSXUVXDQWWR:LOOLDPV86DWsXVWDVLQWKH
WR WKH FLUFXPVWDQFHV XQGHU ZKLFK WKH FRQIHVVLRQ KDG EHHQ        SUHYLRXV LVVXH :LOOLDPV GRHV QRW KHOS $OOH\ EHFDXVH KH
DWWDLQHGHYHQWKRXJKWKHFLUFXPVWDQFHVFDOOHGLQWRTXHVWLRQ            IDLOHG WR H[KLELW WKH QHFHVVDU\ GLOLJHQFH LQ DWWHPSWLQJ WR
WKHFRQIHVVLRQjVFUHGLELOLW\86DW7KH&RXUW           GHYHORSWKHIDFWXDOUHFRUGLQVWDWHFRXUW,GDW
UHYHUVHGWKHFRQYLFWLRQQRWLQJWKDWmWKHEODQNHWH[FOXVLRQRI
WKHSURIIHUHGWHVWLPRQ\DERXWWKHFLUFXPVWDQFHVRISHWLWLRQHU
V            )LUVWDVVWDWHGDERYH$OOH\ZDVRQQRWLFHZLWKUHJDUGWR
                                                                        DOOHJHGLPSURSHUFRQGXFWE\sXGJH$[OH\DWWKHWLPHRIKLV
                                                                        VWDWH SRVWFRQYLFWLRQ SURFHHGLQJV DQG KH UHFHLYHG DQ
    $OOH\Y%HOO                                  1R       1R                                       $OOH\Y%HOO     

HYLGHQWLDU\KHDULQJRQWKHLVVXH6HHHJ$OOH\6:G        KRZHYHUWKH7HQQHVVHHFRXUWUHMHFWHGWKLVFRQWHQWLRQQRWLQJ
DW,WZRXOGWKHUHIRUHKDYHEHHQUHDVRQDEOHIRU$OOH\        WKDW WKH WULDO FRXUW KDG ZHLJKHG WKH SUREDWLYH YDOXH RI WKH
WR KDYH LQTXLUHG IXUWKHU ZLWK UHJDUG WR WKH MXGJHjV DFWLRQV   WDSHV LQ TXHVWLRQ DJDLQVW LWV SUHMXGLFLDO HIIHFW  $OOH\ 
GXULQJKLVWULDO                                                      6:GDW
   0RUH LPSRUWDQWO\ KRZHYHU $OOH\ ZDV RQ QRWLFH DERXW            $OOH\jVDUJXPHQWWRWKLVFRXUWSXWVLPSO\LVWKDWKLVGXH
SRWHQWLDOLUUHJXODULWLHVZLWKUHVSHFWWRWKHMXU\+HDUJXHGLQ       SURFHVVULJKWVZHUHYLRODWHGE\WKHWULDOFRXUWjVH[FOXVLRQRI
KLV VWDWH SRVWFRQYLFWLRQ FDVH WKDW GXULQJ KLV WULDO WKH     WKHK\SQRVLVWDSHVEHFDXVHWKHLQWHUYLHZFRQWDLQHGWKHUHLQ
YLFWLPjVIDPLO\KDGDFFHVVWRDSULYDWHKDOOZD\WKDWOHGRQO\          ZDVWKHEDVLVIRUKLVGRFWRUVjRSLQLRQVWKDWKHVXIIHUHGIURP
WR sXGJH $[OH\jV FKDPEHUV DQG WKH MXU\ URRP $OOH\       PXOWLSOHSHUVRQDOLW\GLVRUGHU$VVXFK$OOH\FRQWHQGVWKDW
6:GDW,QGHHG$OOH\jVWULDOFRXQVHOWHVWLILHGDWWKH         WKH WDSHV ZHUH WKH FHQWHUSLHFH RI WKH NH\ LVVXH DW WULDO
HYLGHQWLDU\KHDULQJKHOGE\WKHVWDWHWULDOFRXUWSRVWUHPDQG          :LWKRXWEHLQJDEOHWRVKRZWKHWDSHVWRWKHMXU\RUUHIHUWRWKH
WKDWWKHYLFWLPjVIDWKHUmZDVJRLQJEDFNLQWRZDUGVWKHEDFN           DFWLRQV RU ZRUGV FRQWDLQHG WKHUHLQ $OOH\ DUJXHV WKDW KLV
ZKHUHQRERG\EXWWKHMXGJHDQGWKHMXU\VWD\VlWKURXJKRXWWKH          GHIHQVHZDVHYLVFHUDWHG)XUWKHU$OOH\SRLQWVRXWWKDWWKH
WULDO$OOH\jVWULDOFRXQVHOPDNHVWKHVDPHDOOHJDWLRQLQDQ          SURVHFXWLRQZDVDEOHWRFURVVH[DPLQHKLVGRFWRUVDQGFDOO
DIILGDYLW VXEPLWWHG WR WKH GLVWULFW FRXUW DORQJ ZLWK $OOH\jV   WKHLURZQH[SHUWVLQRUGHUWRFDOOLQWRGRXEWWKHYHULW\RIWKH
IHGHUDOKDEHDVSHWLWLRQ                                               DOOHJHGPXOWLSOHSHUVRQDOLW\PDQLIHVWDWLRQVDQGKLVGRFWRUV
                                                                       FRXOG QRW UHIHU WR VSHFLILFV RI WKH WDSHV LQ RUGHU WR EROVWHU
   6LQFH$OOH\jVWULDOFRXQVHOZDVERWKDZDUHRIDQGDOOHJLQJ        WKHLUYLHZV
WKHSRVVLELOLW\RIFRQWDFWEHWZHHQWKHYLFWLPjVIDPLO\DQGWKH
MXU\GXULQJWULDO$OOH\jVIDLOXUHWRLQWHUYLHZDQ\MXURUVEHIRUH         ,QVXSSRUWRIKLVDUJXPHQW$OOH\FLWHV6XSUHPH&RXUWFDVH
WKH IHGHUDO KDEHDV VWDJH GRHV QRW FRQVWLWXWH mD UHDVRQDEOH     ODZIRUWKHSURSRVLWLRQWKDWDGHIHQGDQWjVGXHSURFHVVULJKWV
DWWHPSWLQOLJKWRIWKHLQIRUPDWLRQDYDLODEOHDWWKHWLPHWR         DUH YLRODWHG ZKHQ D WULDO FRXUW H[FOXGHV IURP WKH MXU\jV
LQYHVWLJDWHDQGSXUVXHFODLPVLQVWDWHFRXUWl:LOOLDPV          FRQVLGHUDWLRQHYLGHQFHWKDWLVYLWDOWRWKHGHIHQGDQWjVGHIHQVH
86DW,WLVWKHUHIRUHFOHDUWKDW$OOH\GLGQRWPDNHWKH      6HH HJ 5RFN &UDQH Y .HQWXFN\  86  
GLOLJHQWHIIRUWUHTXLUHGE\:LOOLDPVWRGHYHORSLQVWDWHFRXUW         &KDPEHUVY0LVVLVVLSSL86:DVKLQJWRQ
WKHIDFWXDOEDVLVIRUKLVH[SDUWHFODLPIRUWKLVUHDVRQ$OOH\       Y7H[DV867KH6XSUHPH&RXUWKDVZULWWHQ
FDQQRWDYRLGWKHUHTXLUHPHQWVIRUDQHYLGHQWLDU\KHDULQJVHW          RI WKHVH WKUHH FDVHV m7KH H[FOXVLRQV RI HYLGHQFH WKDW ZH
RXWLQ86&H6LQFH$OOH\LVXQDEOHWRIXOILOO       GHFODUHG XQFRQVWLWXWLRQDO LQ WKRVH FDVHV VLJQLILFDQWO\
WKHUHTXLUHPHQWVRIWKDWVHFWLRQZHPXVWDIILUPWKHGLVWULFW          XQGHUPLQHGIXQGDPHQWDOHOHPHQWVRIWKHDFFXVHG
VGHIHQVHl
FRXUWjVGHQLDORI$OOH\jVUHTXHVWIRUDQHYLGHQWLDU\KHDULQJRQ        8QLWHG6WDWHVY6FKHIIHU86$OOH\
WKLVLVVXHDVZHOO                                                   FODLPVWKDWKHPHULWVKDEHDVUHOLHIEHFDXVHWKHWULDOFRXUWjV
                                                                       H[FOXVLRQRIWKHLQWHUYLHZWDSHVZDVFRQWUDU\WRWKLVFOHDUO\
          ([FOXVLRQRI(YLGHQFHDWWKH*XLOW3KDVH                     HVWDEOLVKHG6XSUHPH&RXUWODZ
  $OOH\ FRQWHQGV WKDW WKH VWDWH WULDO FRXUW GHQLHG KLP WKH      .HHSLQJLQPLQGWKHVWULFWXUHVRI$('3$LWLVFOHDUWKDW
DELOLW\WRSUHVHQWDIXOOGHIHQVHLQYLRODWLRQRIKLVULJKWVWR       WKH 7HQQHVVHH 6XSUHPH &RXUWjV GHFLVLRQ LQ WKLV FDVH ZDV
                                                                       QHLWKHUFRQWUDU\WRQRUDQXQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\
                                                                       HVWDEOLVKHG 6XSUHPH &RXUW FDVH ODZ  7KH 6XSUHPH &RXUW
                                                                       FDVHV $OOH\ FLWHV GR QRW VWDQG IRU WKH SURSRVLWLRQ WKDW D
    $OOH\Y%HOO                                   1R       1R                                                        $OOH\Y%HOO           

RIODZDQGUHFRJQL]HGQROLPLWDWLRQVRQKLVEHKDYLRU%DWWOH           GXH SURFHVV DQG FRQIURQWDWLRQ ZKHQ WKH FRXUW UHIXVHG WR
VWDWHG WKDW LW ZDV KLV RSLQLRQ WKDW $OOH\ VXIIHUHG IURP WKH   DGPLW LQWR HYLGHQFH YLGHRWDSHG LQWHUYLHZV  RI $OOH\ ZKLOH
GLVRUGHUDWWKHWLPHRIWKHPXUGHU%DWWOHIXUWKHUWHVWLILHGWKDW      XQGHUK\SQRVLVDQG6RGLXP$P\WDO
WKHUH ZDV HYLGHQFH WHQGLQJ WR VXJJHVW WKDW 3RZHU ZDV LQ
FRQWURODWWKHWLPHRIWKHPXUGHULQFOXGLQJWKHIDFWWKDWWKH             $OOH\jVGHIHQVHDWWULDOZDVWKDWKHZDVLQVDQHDWWKHWLPHRI
QDWXUHRIWKHFULPHILWPRUHZLWK3RZHUjVSHUVRQDOLW\WKDQLW           WKH PXUGHU EHFDXVH KH VXIIHUHG IURP PXOWLSOH SHUVRQDOLW\
GLGZLWK$OOH\jV+RZHYHU'U%DWWOHVDLGWKDWKHFRXOGQRW           GLVRUGHUDOVRFDOOHGGLVVRFLDWLYHLGHQWLW\GLVRUGHU7KHPRVW
EHVXUHWKDWDQDOWHUQDWHSHUVRQDOLW\ZDVLQFRQWUROGXULQJWKH         IDYRUDEOH PHGLFDO WHVWLPRQ\ WR WKLV HIIHFW FDPH IURP
PXUGHU  )RU WKLV UHDVRQ RQ FURVVH[DPLQDWLRQ 'U %DWWOH      SV\FKRORJLVW 'U $OOHQ %DWWOH DQG SV\FKLDWULVW 'U :LOOLV
DGPLWWHG WKDW KH FRXOG QRW VXSSRUW DQ LQVDQLW\ GHIHQVH LQ      0DUVKDOOERWKRIZKRPEDVHGWKHLUGLDJQRVHVRQLQWHUYLHZV
$OOH\jVFDVH                                                          WKDW'U%DWWOHKDGFRQGXFWHGRI$OOH\ZKLOHXQGHUK\SQRVLV
                                                                        'U%DWWOHKDGYLGHRWDSHGWKHVHLQWHUYLHZVDQG'U0DUVKDOO
  2QGLUHFWDSSHDOWKH7HQQHVVHH6XSUHPH&RXUWUHMHFWHG                o ZKR ZDV QRW SUHVHQW GXULQJ WKH LQWHUYLHZV o EDVHG KLV
$OOH\jVFRQWHQWLRQWKDWWKHWULDOFRXUWKDGHUUHGLQH[FOXGLQJ          FRQFOXVLRQRQDYLHZLQJRIWKHWDSHV
WKHWDSHV7KHFRXUWKHOGWKDW
                                                                          7KHSURVHFXWLRQPRYHGIRUWKHWDSHVWREHH[FOXGHGDQG
  DXGLRRUYLGHRWDSHVUHFRUGLQJDGHIHQGDQW
VVWDWHPHQWV               WKHGLVWULFWFRXUWKHDUGWHVWLPRQ\RQWKHLVVXHRXWVLGHRIWKH
  DQGFRQGXFWZKLOHXQGHUK\SQRVLVRUWUXWKVHUXPVZKHQ                MXU\jVSUHVHQFH'U%DWWOHWHVWLILHGWKDWK\SQRVLVZDVRQHRI
  RIIHUHGDVHYLGHQFHRIWKHEDVLVRIDQH[SHUW
VRSLQLRQDV            WKH PHWKRGV RI FKRLFH LQ GLDJQRVLQJ PXOWLSOH SHUVRQDOLW\
  WRWKHGHIHQGDQW
VPHQWDOFRQGLWLRQPD\EHDGPLWWHGRU               GLVRUGHUVDQGWKDWKHKDGFRQGXFWHGWKHWDSHGLQWHUYLHZVLQ
  H[FOXGHG LQ WKH H[HUFLVH RI WKH WULDO FRXUW
V GLVFUHWLRQ      DFFRUGDQFHZLWKUHFRJQL]HGSULQFLSOHVLQWKHILHOG'U%DWWOH
  DIWHUZHLJKLQJWKHSUREDWLYHYDOXHRIWKHWDSHDVSDUWRI             WHVWLILHGWKDWWKHMXU\ZRXOGEHQHILWIURPYLHZLQJWKHWDSHV
  WKHEDVLVIRUWKHH[SHUW
VRSLQLRQDJDLQVWWKHULVNWKDWWKH         EHFDXVHLWZRXOGKHOSWKHMXU\WRXQGHUVWDQGKLVGLDJQRVLV
  WDSHPLJKWFRQIXVHRUPLVOHDGWKHMXU\RUEHLPSURSHUO\
  FRQVLGHUHGDVLQGHSHQGHQWSURRIRIWKHIDFWVUHFLWHGDQG
  VKRZQ WKHUHLQ :KHUH WKH WDSHV DUH QRW DGPLWWHG WKH
  DGPLVVLRQ RI WHVWLPRQ\ RI WKH GHWDLOV RI ZKDW WKH                 
  GHIHQGDQW VDLG ZKLOH XQGHU K\SQRVLV RU WUXWK VHUXP LV               $OOH\ DUJXHV EHIRUH WKLV FRXUW WKDW WKH VWDWH WULDO MXGJHjV HYLGHQWLDU\
  OLNHZLVHZLWKLQWKHWULDOFRXUW
VGLVFUHWLRQ                        UXOLQJ YLRODWHG KLV ULJKWV XQGHU WKH &RQIURQWDWLRQ &ODXVH 86 &RQVW
                                                                        DPHQG 9,       +RZHYHU $OOH\ KDV SURFHGXUDOO\ GHIDXOWHG WKLV FODLP E\

$OOH\6:GDW$IWHUYLHZLQJWKHWDSHVWKH              IDLOLQJ   WR   UDLVH   LW   EHIRUH   WKH   VWDWH   FRXUWV   LQ   WKH   VDPH   ZD\   WKDW   KH

FRXUWKHOGWKDWWKHWULDOMXGJHKDGQRWDEXVHGKLVGLVFUHWLRQ
                                                                        SURFHGXUDOO\ GHIDXOWHG WKH MXGLFLDO ELDV FODLPV KH IDLOHG WR UDLVH LQ VWDWH
                                                                        FRXUW    6H\PRXU       )G DW           $FFRUGLQJO\ ZH ZLOO IRFXV RQ
,GDW                                                            $OOH\jV GXH SURFHVV FODLP

  7KH7HQQHVVHHFRXUWDOVRUHMHFWHG$OOH\jVFRQWHQWLRQWKDW                 
                                                                                $OOH\ DOOHJHV WKDW WKH H[FOXVLRQ IURP HYLGHQFH RI KLV 6RGLXP
WKH WULDO MXGJH YLRODWHG WKH UXOH HQXQFLDWHG LQ 5RFN Y        $P\WDO LQWHUYLHZV YLRODWHG KLV FRQVWLWXWLRQDO ULJKWV                   +RZHYHU $OOH\jV

$UNDQVDV86,Q5RFNWKH6XSUHPH&RXUW               EULHI IRFXVHV VROHO\ RQ WKH LPSRUW RI WKH K\SQRVLV VHVVLRQV                    :H ZLOO

KHOG WKDW D GHIHQGDQWjV GXH SURFHVV ULJKW WR WHVWLI\ ZDV       WKHUHIRUH OLPLW RXU GLVFXVVLRQ VLPLODUO\ VLQFH ZH KROG WKDW WKH WULDO MXGJH

YLRODWHG E\ D VWDWH SHU VH UXOH H[FOXGLQJ DOO K\SQRWLFDOO\     GLG QRW YLRODWH $OOH\jV GXH SURFHVV ULJKWV E\ H[FOXGLQJ WKH K\SQRVLV WDSHV

UHIUHVKHGWHVWLPRQ\,GDW$OOH\KDGDUJXHGWKDWWKHWULDO
                                                                        ZKLFK $OOH\ FRQWHQGV ZHUH FHQWUDO WR KLV GHIHQVH ZH DUH VDIH WR DVVXPH
                                                                        WKDW WKH MXGJH GLG QRW YLRODWH $OOH\jV ULJKWV E\ H[FOXGLQJ WKH 6RGLXP
MXGJHLQKLVFDVHKDGHIIHFWLYHO\LQVWLWXWHGVXFKDSHUVHUXOH        $P\WDO WDSHV DERXW ZKLFK $OOH\ PDNHV QR VXFK FODLP
    $OOH\Y%HOO                                   1R       1R                                     $OOH\Y%HOO     

  'U:LOOLDP*HQWU\WHVWLILHGIRUWKHVWDWHDWWKHLQOLPLQH           WULHGWRFKRNHKLPVHOI0DUVKDOOH[SODLQHGWKDW$OOH\VD\VKH
KHDULQJDQGWHVWLILHGWKDWMXULHVWHQGWREHFRQIXVHGE\DQG            IHHOVRQHRIWKHRWKHUVFKRNLQJKLPZKHQHYHUKHWULHVWRVSHDN
SODFHWRRPXFKZHLJKWXSRQK\SQRWLFWHVWLPRQ\+HWHVWLILHG            DERXWKLVDOWHUQDWHSHUVRQDOLW\%LOOLH
WKDWSHRSOHFDQOLHXQGHUK\SQRVLVDQGWKDWWKHK\SQRWLFVWDWH
SURGXFHVGLIIHUHQWOHYHOVRIFRQVFLRXVQHVVWKDWFDQRQO\EH               ,Q DGGLWLRQ WR GLVFXVVLQJ WKH YLGHRWDSHV 'U 0DUVKDOO
XQGHUVWRRG IURP D  FOLQLFDO SHUVSHFWLYH QRW IURP D OD\        GHVFULEHGLQGHWDLOWKHZD\VLQZKLFKKLVDOWHUQDWHSHUVRQDOLW\
SHUVSHFWLYH                                                            GLDJQRVLVZDVFRQVLVWHQWZLWKYDULRXVDVSHFWVRI$OOH\jVFDVH
                                                                        )LUVW0DUVKDOOH[SODLQHGWKDWGXULQJERWKDQLQLWLDOLQWHUYLHZ
  7KH WULDO MXGJH YLHZHG WKH WDSHV DQG IRXQG WKHP WR EH       DQGWKH6RGLXP$P\WDOLQWHUYLHZV0DUVKDOOKDGFRQGXFWHG
VHQVDWLRQDOXQUHOLDEOHDQGOLNHO\WRFRQIXVHWKHMXU\+HDOVR       $OOH\VSRNHRIERWK'HDWKDQG%LOOLHEHLQJLQWKHFDUZLWKKLP
IRXQGWKDWWKHWDSHVHOLFLWHGQRIDFWVDERXWZKDWKDSSHQHGRQ           WKH QLJKW RI WKH PXUGHU  0DUVKDOO DOVR WHVWLILHG DW OHQJWK
WKHQLJKWRIWKHPXUGHU+HZHLJKHGWKHSUREDWLYHYDOXHRI             DERXW$OOH\jVFKLOGKRRGDQGDGXOWOLIHDQGKHH[SODLQHGKRZ
WKHLU XVH DJDLQVW WKH ULVN WKDW WKH WDSHV PLJKW FRQIXVH RU    ERWK ZHUH FRQVLVWHQW ZLWK KDYLQJ D PXOWLSOH SHUVRQDOLW\
PLVOHDG WKH MXU\ DQG JUDQWHG WKH VWDWHjV PRWLRQ WR H[FOXGH     GLVRUGHU,QGHHGKHH[SODLQHG$OOH\jVEURWKHUoREVHUYLQJ
WKHP6SHFLILFDOO\WKHMXGJHUXOHGWKDWWKHWDSHVFRXOGQRWEH        $OOH\jV VWUDQJH DFWLRQV DQG FKDUDFWHU o KDG FRPH WR WKH
VKRZQWRWKHMXU\DQGWKDWmVWDWHPHQWVRUZRUGVDQGDFWLRQV            FRQFOXVLRQ VHYHUDO \HDUV HDUOLHU WKDW $OOH\ KDG PXOWLSOH
RIWKHGHIHQGDQWZKLOHXQGHUK\SQRVLV>FRXOGQRW@EHUHODWHG            SHUVRQDOLWLHV  )LQDOO\ 0DUVKDOO GHWDLOHG KRZ $OOH\ KDG
WR WKH MXU\ E\ D ZLWQHVVl  +RZHYHU WKH MXGJH KHOG WKDW     VXIIHUHGIURPPHPRU\ODSVHVDQGGLVWRUWLRQVWKURXJKRXWPRVW
ZLWQHVVHVFRXOGWHVWLI\WKDWWKHLQWHUYLHZVZHUHFRQGXFWHG             RIKLVOLIHDQGKHH[SODLQHGWKDWWKLVmLVSUREDEO\WKHPRVW
DQGWKH\FRXOGH[SUHVVWKHLURSLQLRQVDVWRZKHWKHUPXOWLSOH            FRPPRQVLJQRIPXOWLSOHSHUVRQDOLW\l
SHUVRQDOLWLHVZHUHSUHVHQWGXULQJWKHLQWHUYLHZV
                                                                          )RUKLVSDUW'U%DWWOHWHVWLILHGWKDWKHKDGWUHDWHGPRUH
   'UV 0DUVKDOO DQG %DWWOH GLG MXVW WKDW  'U 0DUVKDOO       WKDQDGR]HQFDVHVRIPXOWLSOHSHUVRQDOLW\GLVRUGHUWKURXJKRXW
WHVWLILHG WKDW $OOH\ VXIIHUHG IURP PXOWLSOH SHUVRQDOLW\           KLVFDUHHU'U%DWWOHWKHQH[SODLQHGWKDWKHKDGK\SQRWL]HG
GLVRUGHU DQG KH VWDWHG WKDW $OOH\ H[KLELWHG DW OHDVW WZR      $OOH\ RQ VHYHUDO RFFDVLRQV DQG WKDW EDVHG RQ WKRVH
DOWHUQDWHSHUVRQDOLWLHVRQHFDOOHGm3RZHUlRUm'HDWKlDQGD           LQWHUYLHZVLWZDVKLVRSLQLRQ WKDW$OOH\VXIIHUHGIURPWKH
IHPDOHQDPHGm%LOOLHl0DUVKDOOWHVWLILHGWKDWKHEDVHGWKLV          FRQGLWLRQ  /LNH 'U 0DUVKDOO 'U %DWWOH WHVWLILHG DERXW
RSLQLRQ RQ KLV YLHZLQJ RI WKH WZR YLGHRWDSHG K\SQRVLV           $OOH\jVFKLOGKRRGDQGKRZKHEHOLHYHGH[SHULHQFHVGXULQJ
LQWHUYLHZVGXULQJZKLFKm3RZHUlHPHUJHG0DUVKDOOVWDWHG              WKDWWLPHOHGWRWKHGHYHORSPHQWRIDOWHUQDWHSHUVRQDOLWLHV+H
WKDWLWZDVKLVRSLQLRQEDVHGRQKLVYLHZLQJRIWKHYLGHRWDSHG         DOVRWHVWLILHGDERXW$OOH\jVPHPRU\ORVVDQGWKHVLJQLILFDQFH
LQWHUYLHZV WKDW 3RZHU ZDV OHJDOO\ LQVDQH  'U 0DUVKDOO        KHVDZLQWKDW
IXUWKHU WHVWLILHG ERWK RQ WKH EDVLV RI WKH YLGHRWDSHG
LQWHUYLHZVDQGRWKHULQWHUYLHZV'U0DUVKDOOKDGFRQGXFWHG                 'U%DWWOHWDONHGDERXWWZRDOWHUQDWHSHUVRQDOLWLHV%DWWOH
ZLWK$OOH\WKDWWKHUHZDVHYLGHQFHWKDW3RZHUZDVLQFRQWURO           H[SODLQHGWKDW$OOH\ZDVDZDUHRIWKHH[LVWHQFHRI%LOOLHDQ
DWWKHWLPHRIWKHPXUGHU                                            DOWHUQDWH SHUVRQDOLW\ WKDW VWHPPHG IURP $OOH\jV WURXEOHG
                                                                        FKLOGKRRG  +RZHYHU %DWWOH WHVWLILHG DW JUHDWHU OHQJWK
   7HVWLI\LQJ SULRU WR WKH WULDO FRXUWjV UXOLQJ H[FOXGLQJ WKH   UHJDUGLQJ WKH VHFRQG DOWHUQDWH SHUVRQDOLW\ 3RZHU  %DWWOH
YLGHRWDSHHYLGHQFH0DUVKDOOGHVFULEHGWRWKHMXU\DSRUWLRQ            WHVWLILHG WR KDYLQJ KDG FRQWDFW ZLWK 3RZHU WKURXJK WKH
RI RQH RI WKH K\SQRVLV LQWHUYLHZV GXULQJ ZKLFK $OOH\           K\SQRVLVVHVVLRQVDQGKHWHVWLILHGWKDW3RZHUZDVSV\FKRWLF
VWUXJJOHGZLWKKLPVHOIVSRNHLQDZKLVSHUDQGUHSHDWHGO\              +HH[SODLQHGWKDW3RZHUFODLPHGQRWWREHERXQGE\WKHUXOH