Court Opinion

ID: 2970280
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:08:57.262089+00
Date Added: 2024-06-11T15:01:37.726231
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
             3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

    (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
                )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6
              )257+(6,;7+&,5&8,7
                BBBBBBBBBBBBBBBBB

 81,7(' 67$7(6 2) $0(5,&$        ;
          3ODLQWLII$SSHOODQW     
                                   
                                      1R
            Y                     
                                    !
                                   
 /8,6 *$/9$13(5(=                
           'HIHQGDQW$SSHOOHH 
                                  1
        $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
  IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW%RZOLQJ*UHHQ
    1Rn7KRPDV%5XVVHOO'LVWULFWsXGJH
                $UJXHG0DUFK
            'HFLGHGDQG)LOHG0D\
 %HIRUH1255,66,/(5DQG*,/0$1&LUFXLWsXGJHV
                  BBBBBBBBBBBBBBBBB
                       &2816(/
$5*8('  'DQLHO 6 *RRGPDQ 81,7(' 67$7(6
'(3$570(17 2) s867,&( :DVKLQJWRQ '& IRU
$SSHOODQW6FRWW7:HQGHOVGRUI$66,67$17)('(5$/
38%/,&'()(1'(5/RXLVYLOOH.HQWXFN\IRU$SSHOOHH
21 %5,()  sDPHV ( &DVWHOOR 81,7(' 67$7(6
'(3$570(172)s867,&(:DVKLQJWRQ'&5DQG\:
5HDP7HUU\0&XVKLQJ$66,67$1781,7('67$7(6
$77251(<6/RXLVYLOOH.HQWXFN\IRU$SSHOODQWsDPLH

                            
      8QLWHG6WDWHVY*DOYDQ3HUH]                1R       1R             8QLWHG6WDWHVY*DOYDQ3HUH]      

/+DZRUWK$66,67$17)('(5$/38%/,&'()(1'(5                        VHQWHQFHDQGUHPDQGZLWKLQVWUXFWLRQWRUHLQVWDWHGHIHQGDQWjV
/RXLVYLOOH.HQWXFN\IRU$SSHOOHH                                   RULJLQDOVHQWHQFH
                      BBBBBBBBBBBBBBBBB                                                            ,,,
                          23,1,21                                       7KHVHQWHQFHLPSRVHGE\WKHGLVWULFWFRXUWLVYDFDWHGDQG
                      BBBBBBBBBBBBBBBBB                               WKH FDXVH UHPDQGHG ZLWK LQVWUXFWLRQV WKDW WKH RULJLQDO
                                                                      VHQWHQFHEHUHLQVWDWHG
  $/$1(1255,6&LUFXLWsXGJH'HIHQGDQW/XLV*DOYDQ
3HUH] SOHDGHG JXLOW\ WR D VLQJOHFRXQW LQGLFWPHQW FKDUJLQJ
KLPZLWKXQODZIXOUHHQWU\LQWRWKH8QLWHG6WDWHVDIWHUKDYLQJ
EHHQ SUHYLRXVO\ FRQYLFWHG RI DQ DJJUDYDWHG IHORQ\
'HIHQGDQWPRYHGIRUDGRZQZDUGGHSDUWXUHEDVHGXSRQKLV
ZRUNKLVWRU\DQGWKHQDWXUHRIWKHDJJUDYDWHGIHORQ\ZKLFK
LQYROYHGEUHDNLQJLQWRDXWRPRELOHVWRVWHDOVWHUHRHTXLSPHQW
$OWKRXJK WKH GLVWULFW FRXUW LQLWLDOO\ GHQLHG WKH PRWLRQ LW
UHFRQVLGHUHG LWV GHFLVLRQ VKRUWO\ WKHUHDIWHU DQG UHGXFHG
GHIHQGDQWjVVHQWHQFHIURPDWHUPRIPRQWKVWRRQHRI
PRQWKVRILPSULVRQPHQW
  %HFDXVH WKH GLVWULFW FRXUWjV GHFLVLRQ WR UHVHQWHQFH
GHIHQGDQWH[FHHGHGWKHFRXUWjVDXWKRULW\XQGHU)HGHUDO5XOH
RI&ULPLQDO3URFHGXUHFZHYDFDWHGHIHQGDQWjVVHQWHQFH
DQGUHPDQGWKHPDWWHUWRWKHGLVWULFWFRXUWZLWKLQVWUXFWLRQVWR
UHLQVWDWHLWVRULJLQDOVHQWHQFH
                                ,
  2Q sXO\   D JUDQG MXU\ UHWXUQHG D RQHFRXQW
LQGLFWPHQW FKDUJLQJ GHIHQGDQW ZLWK YLRODWLQJ  86&
E7KDWVWDWXWHSURYLGHVLQSDUWDVIROORZV
    E &ULPLQDOSHQDOWLHVIRUUHHQWU\RIFHUWDLQUHPRYHG
        DOLHQV
    1RWZLWKVWDQGLQJVXEVHFWLRQDRIWKLVVHFWLRQLQWKHFDVH
    RIDQ\DOLHQGHVFULEHGLQVXFKVXEVHFWLRQo
           
    8QLWHG6WDWHVY*DOYDQ3HUH]                 1R      1R                8QLWHG6WDWHVY*DOYDQ3HUH]          

  XSRQLQGHIHQGDQWjVRULJLQDOVHQWHQFLQJKDGEHHQFRUUHFW            ZKRVHUHPRYDOZDVVXEVHTXHQWWRDFRQYLFWLRQIRU
  WKH VHQWHQFLQJ MXGJH FRQFOXGHG KH KDG HUUHG LQ IL[LQJ        FRPPLVVLRQRIDQDJJUDYDWHGIHORQ\VXFKDOLHQVKDOOEH
  GHIHQGDQWjVRULJLQDOVHQWHQFH7KHSXUSRUWHGHUURUZDV              ILQHG XQGHU VXFK 7LWOH LPSULVRQHG QRW PRUH WKDQ 
  DSSO\LQJ WKH OHYHO LQFUHDVH FDOOHG IRU E\ WKH             \HDUVRUERWK
  JXLGHOLQHV GXH WR $EUHX&DEUHUDjV GHSRUWDWLRQ DIWHU
  FRPPLVVLRQ RI DQ DJJUDYDWHG IHORQ\ LQ D IDVKLRQ mVR       86&E$FFRUGLQJWRKLVSUHVHQWHQFHUHSRUW
  PHFKDQLFDODVWRLPSRVHDGUDFRQLDQUHVXOWl7KHGLVWULFW         GHIHQGDQW SOHDGHG JXLOW\ LQ 6HSWHPEHU  WR FHUWDLQ
  MXGJHWKHQSURFHHGHGWRUHYLHZWKHXQGHUO\LQJIDFWVRI             IHORQLHVUHODWHGWREUHDNLQJLQWRDXWRPRELOHV7KHLQGLFWPHQW
  WKH DJJUDYDWHG IHORQ\ DQG GHIHQGDQWjV RWKHU                   LQWKDWSURVHFXWLRQFRQWDLQVWKHIROORZLQJGHVFULSWLRQRIWKH
  FLUFXPVWDQFHVGHFLGLQJWKDWGRZQZDUGGHSDUWXUHIURP               FULPHV
  WKHVHQWHQFLQJJXLGHOLQHVZDVZDUUDQWHG7KHUHVXOWZDV
  WKHQHZVHQWHQFHRIPRQWKV                                       2Q$SULO/XLV3HUH]WUXHQDPH/XLV*DOYDQ
                                                                       3HUH]DQGWZRFRGHIHQGDQWVEURNHLQWRD3RQWLDF
    6XFKFRUUHFWLRQLVFOHDUO\RXWVLGHWKHVFRSHRIWKHUXOH          )LUHELUG DQG D  0HUFXU\ &RXJDU SDUNHG DW 
  %\ LWV WHUPV 5XOH F SHUPLWV FRUUHFWLRQV RI                :KLWORFNLQ/RXLVYLOOH.HQWXFN\DQGEURNHLQWRD
  mDULWKPHWLFDOWHFKQLFDORURWKHUFOHDUHUURU>V@l            1LVVDQDXWRPRELOHDQGD)RUGSLFNXSWUXFNSDUNHG
                                                                       DW:KHHOHULQ/RXLVYLOOH.HQWXFN\DQGVWROHFDU
                                                                VWHUHR LWHPV YDOXHG LQ H[FHVV RI  IURP HDFK
                                                                       DXWRPRELOH  0U *DOYDQ3HUH] DQG KLV FRGHIHQGDQWV
    :KDWHYHUHUURUZDVSHUFHLYHGE\WKHVHQWHQFLQJFRXUW               ZHUHDUUHVWHGE\SROLFHRIILFLDOVGXULQJWKHLUEUHDNLQRI
  FHUWDLQO\FRXOGQRWEHFDWHJRUL]HGDVDQDULWKPHWLFDORU             D  1LVVDQ DXWRPRELOH SDUNHG DW  :KHHOHU LQ
  WHFKQLFDOHUURUQRUFRXOGLWEHmRWKHUFOHDUHUURUl7KH           /RXLVYLOOH.HQWXFN\
  IDLOXUH WR PDNH D GRZQZDUG GHSDUWXUH DW
  $EUHX&DEUHUDjVLQLWLDOVHQWHQFLQJGLGQRWFRQVWLWXWHDQ           'HIHQGDQWZDVSODFHGRQSUREDWLRQZKLFKZDVODWHUUHYRNHG
  REYLRXVHUURURUPLVWDNHWKDWZRXOGKDYHUHVXOWHGLQD             ZKHQKHOHIWWKHVWDWHZLWKRXWLQIRUPLQJKLVSUREDWLRQRIILFHU
  UHPDQGE\WKLV&RXUW'HIHQGDQWjVRULJLQDOVHQWHQFHZDV           +HVHUYHGWKUHHDQGDKDOIPRQWKVLQSULVRQDIWHUKLVUHWXUQWR
  QRW LOOHJDO QRU ZDV LW WKH UHVXOW RI DQ LQFRUUHFW        .HQWXFN\+HZDVHYHQWXDOO\GHSRUWHGWR0H[LFRLQ
  DSSOLFDWLRQ RI WKH JXLGHOLQHV RU XQUHDVRQDEOH  6LQFH       EXWLOOHJDOO\UHWXUQHGWRWKH8QLWHG6WDWHVVRPHWLPHWKHUHDIWHU
  $EUHX&DEUHUDjVUHVHQWHQFLQJUHSUHVHQWHGQRWKLQJPRUH              $W WKH WLPH RI KLV DUUHVW GHIHQGDQW ZDV OLYLQJ LQ %RZOLQJ
  WKDQ D GLVWULFW FRXUWjV FKDQJH RI KHDUW DV WR WKH         *UHHQ.HQWXFN\DQGZRUNLQJDVDURRIHU'HIHQGDQWFDPH
  DSSURSULDWHQHVVRIWKHVHQWHQFHLWZDVDFFRUGLQJO\QRWD          WRWKHDWWHQWLRQRIWKHIHGHUDODXWKRULWLHVDIWHUKHZDVDUUHVWHG
  FRUUHFWLRQDXWKRUL]HGE\5XOHF                               LQsXQHIRUDEXVLQJKLVJLUOIULHQG+HSOHDGHGJXLOW\WR
                                                                     WKDWFKDUJHDQGVHUYHGGD\VLQMDLODQGZDVWKHQUHOHDVHG
$EUHX&DEUHUD)GDW6LPLODUO\LQWKHLQVWDQWFDVH        LQWRIHGHUDOFXVWRG\
WKHGLVWULFWFRXUWLPSRVHGDOHJDOVHQWHQFHUHFRQVLGHUHGDQG
DWWHPSWHG WR LQYRNH LWV GLVFUHWLRQ WR GHSDUW GRZQZDUG          7KHSUHVHQWHQFHUHSRUWLQGLFDWHGWKDWKLVJXLGHOLQHUDQJH
%HFDXVHWKHFRXUWUHDFKHGLWVUHYLVHGGHFLVLRQDIWHUHQWHULQJ        RILPSULVRQPHQWZDVWRPRQWKV$OWKRXJKGHIHQGDQW
WKHRULJLQDOMXGJPHQWKRZHYHUWKHUHVWULFWLRQVRI5XOHF       PRYHGIRUDGRZQZDUGGHSDUWXUHWKHGLVWULFWFRXUWHOHFWHGWR
DSSO\,QWKLVFDVHWKHFRXUWZDVQRWDFWLQJWRFRUUHFWDFOHDU    VHQWHQFHKLPDWWKHERWWRPRIWKHUDQJHWKDWLVWRPRQWKV
HUURUEXWUDWKHUWRUHIOHFWDmFKDQJHRIKHDUWl)RUWKHUHDVRQV   'XULQJ WKH VHQWHQFLQJ KHDULQJ WKH GLVWULFW FRXUW H[SUHVVHG
RXWOLQHGWKHVHFLUFXPVWDQFHVUHTXLUHXVWRYDFDWHWKHUHYLVHG       UHVHUYDWLRQVDERXWJUDQWLQJWKHUHTXHVWHGGHSDUWXUH
        8QLWHG6WDWHVY*DOYDQ3HUH]                   1R        1R                8QLWHG6WDWHVY*DOYDQ3HUH]           

    :KDWERWKHUVPHLVWKDW,PLJKWNLQGRIJRDORQJZLWK                  FRQFHUQWKDWGHIHQGDQWKDGEURXJKWWURXEOHXSRQKLPVHOIILUVW
    \RXEXWKH\RXNQRZZKHQKHZDVIRUVWHDOLQJWKHVH                 E\ YLRODWLQJ KLV SUREDWLRQ DQG WKHQ E\ DVVDXOWLQJ KLV
    WKHVHVWHUHRVKHZDVJLYHQVRPHWLPHSUREDWHGDQGWKHQ                  JLUOIULHQG7KH0HPRUDQGXP2SLQLRQDQG2UGHUWKDWJUDQWHG
    KHYLRODWHGKLVSUREDWLRQDQGWRRNRIIWR&DOLIRUQLDDQG                WKHGRZQZDUGGHSDUWXUHKRZHYHUFKDUDFWHUL]HGGHIHQGDQWjV
    WKH\KDGWRDUUHVWKLPDJDLQDQGJHWKLP7KDWERWKHUV                 SUREDWLRQYLRODWLRQDVDVHDUFKIRUHPSOR\PHQWDQGIDLOHGWR
    PH                                                                     PHQWLRQWKHGRPHVWLFDVVDXOWDWDOO
7KHFRXUWODWHUH[SODLQHGLWVHOIIXUWKHU                                     7KH SRZHU JUDQWHG E\ 5XOH F WR D GLVWULFW FRXUW LV
                                                                            H[FHHGLQJO\OLPLWHG,Q8QLWHG6WDWHVY'XUKDP)G
    >8@QIRUWXQDWHO\ 0U 3HUH]j RULJLQDO FULPH ZDV DQ                  WK&LUZHREVHUYHGWKDWm>W@KHDGYLVRU\
    DJJUDYDWHGIHORQ\PDGHPRUHDJJUDYDWHGDV,VDLGE\                   FRPPLWWHHjV QRWHV WR 5XOH F SURYLGH WKDW D FRXUWjV
    KLVRZQFRQGXFW$QGDQGKHZRXOGQjWKDYHEHHQEH                    DXWKRULW\WRFRUUHFWDVHQWHQFHLVYHU\QDUURZDQGWKDW5XOH
    EDFN KHUH WRGD\ EXW IRU VXEVHTXHQW FULPLQDO FRQGXFW             F GRHV QRW DIIRUG WKH GLVWULFW FRXUW DQ RSSRUWXQLW\ WR
    $QGXQIRUWXQDWHO\ KH GRHVQjWPHHWDOOWKHFULWHULDWKDW               UHFRQVLGHULWVLQWHUSUHWDWLRQRIWKHJXLGHOLQHVl7KHDGYLVRU\
    HQFRXUDJHVDGRZQZDUGGHSDUWXUH                                        FRPPLWWHHjVQRWHZHUHIHUWRVWDWHVm7KHVXEGLYLVLRQLVQRW
                                                                            LQWHQGHGWRDIIRUGWKHFRXUWWKHRSSRUWXQLW\WRFKDQJHLWVPLQG
  $SSUR[LPDWHO\ RQH ZHHN ODWHU WKH FRXUW KDG VHFRQG                 DERXWWKHDSSURSULDWHQHVVRIWKHVHQWHQFH1RUVKRXOGLWEH
WKRXJKWV DQG LVVXHG D 0HPRUDQGXP 2SLQLRQ DQG 2UGHU                   XVHGWRUHRSHQLVVXHVSUHYLRXVO\UHVROYHGDWWKHVHQWHQFLQJ
UHGXFLQJGHIHQGDQWjVVHQWHQFHWRPRQWKVRILPSULVRQPHQW                 KHDULQJ WKURXJK WKH H[HUFLVH RI WKH FRXUWjV GLVFUHWLRQ ZLWK
$IWHU DFNQRZOHGJLQJ WKH DSSOLFDEOH JXLGHOLQHVj SURYLVLRQV              UHJDUGWRWKHDSSOLFDWLRQRIWKHVHQWHQFLQJJXLGHOLQHVl)HG
DQGUHODWHGFDVHODZWKHFRXUWFRQFOXGHG                                  5 &ULP 3 F DGYLVRU\ FRPPLWWHHjV QRWHV 
                                                                            DPHQGPHQWV VHH DOVR :LVFK  )G DW  5XOH F
    >$@ GRZQZDUG GHSDUWXUH PD\ EH ZDUUDQWHG LQ RWKHU                 GRHVQRWSHUPLWFRXUWmWRUHLPSRVHVHQWHQFHVEDVHGXSRQD
    VLWXDWLRQV ZKHUH DIWHU HYDOXDWLQJ WKH FDVH LQ OLJKW RI         VXEVHTXHQWFKDQJHRIKHDUWlDFFRUG0RUULVRQ)GDW
    .RRQD'LVWULFW&RXUWFRQFOXGHVWKHFDVHEHIRUHLWIDOOV              
    RXWVLGH WKH mKHDUWODQGl RI FDVHV FRQVLGHUHG E\ WKH
    &RPPLVVLRQ                                                                )LQDOO\DQRSLQLRQIURPWKHVHFRQGFLUFXLW8QLWHG6WDWHV
                                                                            Y $EUHX&DEUHUD VXSUD LV LQVWUXFWLYH  ,Q WKDW FDVH WKH
       +HUHWKH&RXUWVRFRQFOXGHV3HUH]ZDVFRQYLFWHGRI                GLVWULFWFRXUWKDGVHFRQGWKRXJKWVDERXWLPSRVLQJWKHVL[WHHQ
    DUHODWLYHO\PLQRUIHORQ\VRPHVL[\HDUVDJRLQYROYLQJ                OHYHODGMXVWPHQWIRUFRPPLVVLRQRIDQDJJUDYDWHGIHORQ\SULRU
    PLQRU SURSHUW\ WKHIW IURP XQRFFXSLHG DXWRPRELOHV                  WRLOOHJDOUHHQWU\LQWRWKH8QLWHG6WDWHVoWKHVDPHLVVXHQRZ
    3HUH] KDV DSSDUHQWO\ RWKHUZLVH PDLQWDLQHG VWHDG\                   EHIRUH XV  ,Q KROGLQJ WKDW WKH GLVWULFW FRXUW H[FHHGHG LWV
    HPSOR\PHQWGXULQJKLVWLPHLQWKH8QLWHG6WDWHVDQGKDV                DXWKRULW\XQGHU5XOHFWKHFRXUWSURYLGHGWKHIROORZLQJ
    QRW HQJDJHG LQ DQ\ RWKHU IHORQLRXV FULPLQDO EHKDYLRU            DQDO\VLV
    2WKHUWKDQYLRODWLQJKLVSUREDWLRQLQDQDWWHPSWWRVHHN
    IXUWKHUHPSOR\PHQW3HUH]FRRSHUDWHGSRVLWLYHO\ZLWKWKH                    7XUQLQJWRWKHLQVWDQWFDVHWKHGLVWULFWFRXUWjVRUGHU
                                                                              UHIHUUHGWRLWVZLVKmWRFRQVLGHUFRUUHFWLQJWKHVHQWHQFH
                                                                              SXUVXDQW WR 5XOH Fl  $OWKRXJK UHFRJQL]LQJ DW
     
     7KH FRXUW LV UHIHUULQJ WR .RRQ Y 8QLWHG 6WDWHV  86  
                                                                              $EUHX&DEUHUDjV UHVHQWHQFLQJ KHDULQJ WKDW WKH
ZKHUH WKH 6XSUHPH &RXUW GLVFXVVHV WKH GLVWLQFWLRQ SHUPLWWHG XQGHU WKH         SUHVHQWHQFHUHSRUWjVUHFRPPHQGDWLRQVWKDWKHKDGUHOLHG
VHQWHQFLQJ JXLGHOLQHV IRU GHSDUWLQJ IURP WKHP LQ DW\SLFDO FDVHV
      8QLWHG6WDWHVY*DOYDQ3HUH]                   1R       1R                8QLWHG6WDWHVY*DOYDQ3HUH]           

    LQFOXGHV 1HZ <HDUjV 'D\ %LUWKGD\ RI 0DUWLQ /XWKHU              &RPPRQZHDOWK ZKHQ FRQYLFWHG RI VWHDOLQJ WKH FDU
    .LQJ sU :DVKLQJWRQjV %LUWKGD\ 0HPRULDO 'D\                   VWHUHRV  3HUH] KDV DOVR GHPRQVWUDWHG D ZLOOLQJQHVV WR
    ,QGHSHQGHQFH'D\/DERU'D\&ROXPEXV'D\9HWHUDQV                    DFNQRZOHGJHKLVJXLOWRIWKHLQVWDQWFULPLQDORIIHQVHE\
    'D\7KDQNVJLYLQJ'D\&KULVWPDV'D\DQGDQ\RWKHU                    ZD\RIKLVSOHDRIJXLOW)LQDOO\WKH&RXUWQRWHV3HUH]
    GD\ DSSRLQWHG DV D KROLGD\ E\ WKH 3UHVLGHQW RU WKH            IXOO\FRRSHUDWHGZLWKWKLV&RXUWWKURXJKRXWWKHLQVWDQW
    &RQJUHVVRIWKH8QLWHG6WDWHVRUE\WKHVWDWHLQZKLFK                SURFHHGLQJV
    WKHGLVWULFWFRXUWLVKHOG
                                                                         ,Q OLJKW RI WKH FRXUWjV UHDVRQLQJ ZH QRWH LQ SDVVLQJ WKDW
)HG5&ULP3D:KLOH5XOHDGRHVQRWPHQWLRQ               GHIHQGDQWUHFHLYHGWKHIXOOWKUHHSRLQWGRZQZDUGDGMXVWPHQW
5XOH  5XOH E ZKLFK GHDOV ZLWK WKH HQODUJHPHQW RI        IRUDFFHSWDQFHRIUHVSRQVLELOLW\ZLWKUHVSHFWWRKLVRULJLQDO
WLPH VSHFLILFDOO\ VWDWHV WKDW LW GRHV QRW DSSO\ WR 5XOH    VHQWHQFH
:KHQGUDIWLQJ5XOHWKHUHIRUH&RQJUHVVZDVFOHDUO\DZDUH
RILWVLQWHUDFWLRQZLWK5XOH8QGHUWKHFLUFXPVWDQFHVZH                                            ,,
ORRN WR WKH IROORZLQJ ZHOONQRZQ UXOH RI VWDWXWRU\
FRQVWUXFWLRQDVIXUWKHUHYLGHQFHRI&RQJUHVVLRQDOLQWHQWm7KH           *XLGHOLQHV&RQVLGHUDWLRQV
HQXPHUDWLRQ RI H[FOXVLRQV IURP WKH RSHUDWLRQ RI D VWDWXWH
LQGLFDWHV WKDW WKH VWDWXWH VKRXOG DSSO\ WR DOO FDVHV QRW           *XLGHOLQH VHFWLRQ / DSSOLHV WR DQ RIIHQVH XQGHU 
VSHFLILFDOO\ H[FOXGHGl  $ 6LQJHU 6WDWXWHV DQG 6WDWXWRU\        86&E,WSURYLGHVDEDVHRIIHQVHOHYHOVFRUHRI
&RQVWUXFWLRQ   WK HG   %HFDXVH 5XOH E          :KHQ GHIHQGDQW ZDV VHQWHQFHG  / SURYLGHG WKH
H[SOLFLWO\H[FOXGHV5XOHIURPLWVSXUYLHZZHFDQLQIHU               IROORZLQJVSHFLILFRIIHQVHFKDUDFWHULVWLF
WKDW&RQJUHVVGLGQRWLQWHQGVXFKDQH[FOXVLRQZLWKUHVSHFWWR
5XOHD7KLVFRQFOXVLRQLVIXUWKHUEROVWHUHGE\WKHIDFW              ,IWKHGHIHQGDQWSUHYLRXVO\ZDVGHSRUWHGDIWHUDFULPLQDO
WKDW DW OHDVW RQH RI RXU VLVWHU FLUFXLWV KDV DSSOLHG WKH         FRQYLFWLRQRULIWKHGHIHQGDQWXQODZIXOO\UHPDLQHGLQ
FRPSXWDWLRQRIWLPHSUHVFULEHGE\5XOHDWR5XOHF                WKH8QLWHG6WDWHVIROORZLQJDUHPRYDORUGHULVVXHGDIWHU
6HH8QLWHG6WDWHVY:LVFK)GWK&LU             DFULPLQDOFRQYLFWLRQLQFUHDVHDVIROORZVLIPRUHWKDQ
%\DSSO\LQJRXUUHDVRQLQJWRWKHIDFWVRIWKLVFDVHWKHGLVWULFW          RQHDSSOLHVXVHWKHJUHDWHU
FRXUWDFWHGZLWKLQWKHVHYHQGD\OLPLWHYHQLIZHDVVXPHWKDW              $ ,IWKHFRQYLFWLRQZDVIRUDQDJJUDYDWHGIHORQ\
WKH FORFN EHJDQ WR UXQ ZKHQ WKH VHQWHQFH ZDV RUDOO\                   LQFUHDVHE\OHYHOV
SURQRXQFHG
7KH'HSDUWXUH                                                              % ,IWKHFRQYLFWLRQZDVIRULDQ\RWKHUIHORQ\RU
                                                                               LL WKUHH RU PRUH PLVGHPHDQRU FULPHV RI
   +DYLQJFRQFOXGHGWKDWWKHGLVWULFWFRXUWKDGMXULVGLFWLRQWR                YLROHQFHRUPLVGHPHDQRUFRQWUROOHGVXEVWDQFH
DOWHUWKHVHQWHQFHZHPXVWQH[WGHWHUPLQHZKHWKHULWKDGD                    RIIHQVHVLQFUHDVHE\OHYHOV
SURSHUEDVLVWRGRVR                                                  866*  /E 1RY   7KLV YHUVLRQ RI WKH
  7KH GLVWULFW FRXUW QHYHU UHIHUUHG WR 5XOH F LQ LWV        JXLGHOLQHLQFOXGHGWKHIROORZLQJDSSOLFDWLRQQRWH
0HPRUDQGXP2SLQLRQDQG2UGHU,WPHUHO\FKDUDFWHUL]HGLWV                 $JJUDYDWHG IHORQLHV WKDW WULJJHU WKH DGMXVWPHQW IURP
HDUOLHUGHQLDORIGHIHQGDQWjVPRWLRQIRUDGRZQZDUGGHSDUWXUH              VXEVHFWLRQE$YDU\ZLGHO\,IVXEVHFWLRQE$
DVmURERWLFlDQGDQLQVWDQFHRImFOHDUHUURUl$VFLWHGHDUOLHU         DSSOLHV DQG $ WKH GHIHQGDQW KDV SUHYLRXVO\ EHHQ
GXULQJ WKH VHQWHQFLQJ KHDULQJ WKH GLVWULFW FRXUW H[SUHVVHG
      8QLWHG6WDWHVY*DOYDQ3HUH]                 1R       1R                8QLWHG6WDWHVY*DOYDQ3HUH]             

    FRQYLFWHGRIRQO\RQHIHORQ\RIIHQVH%VXFKRIIHQVH                7KH GRFNHW VKHHW UHIOHFWV WKDW WKH GLVWULFW FRXUW HQWHUHG
    ZDV QRW D FULPH RI YLROHQFH RU ILUHDUPV RIIHQVH DQG      MXGJPHQW RQ 'HFHPEHU   DQG WKHQ HQWHUHG LWV RUGHU
    &WKHWHUPRILPSULVRQPHQWLPSRVHGIRUVXFKRIIHQVH              DOWHULQJWKHVHQWHQFHRQ'HFHPEHU7KXVLWZRXOGDSSHDU
    GLGQRWH[FHHGRQH\HDUDGRZQZDUGGHSDUWXUHPD\EH               WKDWWKHFRXUWDFWHGZLWKLQWKHVHYHQGD\SHULRGLPSRVHGE\
    ZDUUDQWHG EDVHG RQ WKH VHULRXVQHVV RI WKH DJJUDYDWLQJ       5XOHF+RZHYHUWKHJRYHUQPHQWDUJXHVWKDWWKHFORFN
    IDFWRU                                                            EHJLQVWRUXQZKHQVHQWHQFHLVSURQRXQFHGDWWKHVHQWHQFLQJ
                                                                       KHDULQJZKLFKRFFXUUHGRQ1RYHPEHUHLJKWGD\VEHIRUH
866*/FRPPHQWQ                                     WKHVHQWHQFHZDVDOWHUHG7KLVFRXUWKDVDFNQRZOHGJHGDVSOLW
                                                                       DPRQJWKHFLUFXLWVRQZKHWKHUWKHFORFNEHJLQVWRUXQDWWKH
6WDQGDUGRI5HYLHZ                                                     WLPHRIWKHVHQWHQFLQJKHDULQJRUWKHWLPHWKDWMXGJPHQWLV
                                                                       HQWHUHG8QLWHG6WDWHVY0F*DKHH)GWK
  :H UHYLHZ D GLVWULFW FRXUWjV GRZQZDUG GHSDUWXUH DW            &LU  FROOHFWLQJ FDVHV VHH DOVR 8QLWHG 6WDWHV Y
VHQWHQFLQJIRUDQDEXVHRIGLVFUHWLRQ8QLWHG6WDWHVY5HHG         *RQ]DOH])GWK&LUGLVFXVVLQJVSOLW
 )G   WK &LU  FLWLQJ .RRQ Y 8QLWHG     LQPRUHGHWDLO$QGUHZ35LWWHQEHUJ&RPPHQWm,PSRVLQJl
6WDWHV  86     8QGHU WKH DEXVHRI        D6HQWHQFHXQGHU5XOHF8&KL/5HY
GLVFUHWLRQVWDQGDUGWKHGLVWULFWFRXUWjVGHWHUPLQDWLRQWKDWD         GLVFXVVLQJUDWLRQDOHVIRUERWKSRVLWLRQVDQGUHFRPPHQGLQJ
SDUWLFXODU IDFWRU LV D SHUPLVVLEOH EDVLV IRU GHSDUWXUH LV D   D MXGJPHQW HQWU\ GDWH DV WULJJHU  0RUHRYHU FRXUWV KDYH
TXHVWLRQ RI ODZ WR ZKLFK ZH QHHG QRW GHIHU  ,G 8QLWHG    JHQHUDOO\ KHOG WKDW WKH VHYHQGD\ OLPLW LV MXULVGLFWLRQDO
6WDWHVY:HDYHU)GWK&LU                   *RQ]DOH]  )G DW  VHH DOVR 8QLWHG 6WDWHV Y
                                                                       0RUULVRQ  )G   WK &LU  8QLWHG
   7KHUHOHYDQWVHQWHQFLQJVWDWXWH86&EVWDWHV        6WDWHVY$EUHX&DEUHUD)GG&LU
WKDW D VHQWHQFLQJ FRXUW VKDOO LPSRVH D VHQWHQFH ZLWKLQ WKH
DSSOLFDEOH*XLGHOLQHVUDQJHmXQOHVVWKHFRXUWILQGVWKDWWKHUH           :H QHHG QRW UHDFK WKLV TXHVWLRQ KRZHYHU EHFDXVH ZH
H[LVWVDQDJJUDYDWLQJRUPLWLJDWLQJFLUFXPVWDQFHRIDNLQGRU         DJUHHZLWKGHIHQGDQWjVSRVLWLRQWKDW)HGHUDO5XOHRI&ULPLQDO
WRDGHJUHHQRWDGHTXDWHO\WDNHQLQWRFRQVLGHUDWLRQE\WKH            3URFHGXUH D DSSOLHV WR WKH FRPSXWDWLRQ RI WLPH XQGHU
6HQWHQFLQJ &RPPLVVLRQ LQ IRUPXODWLQJ WKH JXLGHOLQHV WKDW         5XOHF5XOHDSURYLGHV
VKRXOGUHVXOWLQDVHQWHQFHGLIIHUHQWIURPWKDWGHVFULEHGl,Q
GHWHUPLQLQJ ZKHWKHU WKH &RPPLVVLRQ KDV DGHTXDWHO\                   ,Q FRPSXWLQJ DQ\ SHULRG RI WLPH WKH GD\ RI WKH DFW RU
FRQVLGHUHG D SDUWLFXODU FLUFXPVWDQFH D VHQWHQFLQJ FRXUW           HYHQWIURPZKLFKWKHGHVLJQDWHGSHULRGRIWLPHEHJLQVWR
VKRXOG FRQVLGHU mRQO\ WKH VHQWHQFLQJ JXLGHOLQHV SROLF\            UXQVKDOOQRWEHLQFOXGHG7KHODVWGD\RIWKHSHULRGVR
VWDWHPHQWV DQG RIILFLDO FRPPHQWDU\ RI WKH 6HQWHQFLQJ              FRPSXWHG VKDOO EH LQFOXGHG XQOHVV LW LV D 6DWXUGD\ D
&RPPLVVLRQl,G                                                        6XQGD\RUDOHJDOKROLGD\RUZKHQWKHDFWWREHGRQHLV
                                                                         WKHILOLQJRIVRPHSDSHULQFRXUWDGD\RQZKLFKZHDWKHU
sXULVGLFWLRQRIWKH'LVWULFW&RXUW                                       RURWKHUFRQGLWLRQVKDYHPDGHWKHRIILFHRIWKHFOHUNRI
                                                                         WKHGLVWULFWFRXUWLQDFFHVVLEOHLQZKLFKHYHQWWKHSHULRG
  7KH JRYHUQPHQW FRQWHQGV WKDW WKH GLVWULFW FRXUW ODFNHG          UXQVXQWLOWKHHQGRIWKHQH[WGD\ZKLFKLVQRWRQHRIWKH
MXULVGLFWLRQWRUHVHQWHQFHGHIHQGDQWEHFDXVHLWIDLOHGWRDELGH         DIRUHPHQWLRQHGGD\V:KHQDSHULRGRIWLPHSUHVFULEHG
E\WKHWLPHOLPLWLPSRVHGE\5XOHFm7KHFRXUWDFWLQJ              RUDOORZHGLVOHVVWKDQGD\VLQWHUPHGLDWH6DWXUGD\V
ZLWKLQGD\VDIWHUWKHLPSRVLWLRQRIVHQWHQFHPD\FRUUHFWD            6XQGD\V DQG OHJDO KROLGD\V VKDOO EH H[FOXGHG LQ WKH
VHQWHQFH WKDW ZDV LPSRVHG DV D UHVXOW RI DULWKPHWLFDO           FRPSXWDWLRQ $V XVHG LQ WKHVH UXOHV mOHJDO KROLGD\l
WHFKQLFDORURWKHUFOHDUHUURUl