Court Opinion

ID: 2970600
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:17:20.071544+00
Date Added: 2024-06-11T15:01:57.065644
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

 s2+1 7 0$57,1                 ;
         3HWLWLRQHU$SSHOODQW    
                                  
                                     1R
           Y                     
                                   !
                                  
 (':$5' 3(5(=                    
        5HVSRQGHQW$SSHOOHH 
                                 1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW$VKODQG
  1Rn+HQU\5:LOKRLWsU'LVWULFWsXGJH
                  6XEPLWWHGsDQXDU\
             'HFLGHGDQG)LOHG)HEUXDU\
  %HIRUH0$57,1&KLHI&LUFXLWsXGJH0(55,77DQG
                /$<&LUFXLWsXGJHV
                       BBBBBBBBBBBBBBBBB
                             &2816(/
21 %5,()  )UDQFHV ( &DWURQ $66,67$17 81,7('
67$7(6$77251(</H[LQJWRQ.HQWXFN\IRU$SSHOOHH
sRKQ70DUWLQ$VKODQG.HQWXFN\SURVH

    
     7KH +RQRUDEOH 'RQDOG 3 /D\ &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV
&RXUW RI $SSHDOV IRU WKH (LJKWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ

                                   
     0DUWLQY3HUH]                                1R

                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  %2<&( ) 0$57,1 sU &KLHI &LUFXLW sXGJH  3UR VH
SHWLWLRQHUsRKQ70DUWLQDSSHDOVWKHGLVPLVVDORIKLVSHWLWLRQ
IRUKDEHDVFRUSXVUHOLHIXQGHU86&:LWKRXW
UHTXLULQJWKHIHGHUDOZDUGHQ(GZDUG3HUH]WRILOHDUHVSRQVH
WKH GLVWULFW FRXUW GLVPLVVHG WKH 6HFWLRQ  SHWLWLRQ DV D
VXFFHVVLYHSHWLWLRQEURXJKWDIWHUVXFFHVVLYHFODLPVXQGHU
86&ZKLFKWKHFLUFXLWFRXUWIRUWKHVHQWHQFLQJFRXUW
UHIXVHGWRDOORZ0DUWLQDUJXHVWKDWKLV6HFWLRQSHWLWLRQ
ZDVLPSURSHUO\GLVPLVVHG%HFDXVHZHILQGDVUHTXLUHGE\
&RQJUHVV WKDW 0DUWLQjV SURFHVV XQGHU 6HFWLRQ  ZDV
LQDGHTXDWH DQG LQHIIHFWLYH ZH 5(0$1' WKLV FDVH WR WKH
GLVWULFW FRXUW IRU IXUWKHU SURFHHGLQJV FRQVLVWHQW ZLWK WKLV
RSLQLRQ
   7KH6RXWKHUQ'LVWULFWRI,QGLDQDLQGLFWHG0DUWLQLQ0D\RI
IRUPDQXIDFWXULQJDQGGHWRQDWLQJDSLSHERPE0DUWLQ
PDQXIDFWXUHGDERPEWKDWZDVILYHDQGRQHKDOILQFKHVORQJ
DQGRQHDQGRQHKDOILQFKHVLQGLDPHWHUDQGKHGHWRQDWHGLW
DWWKHEDFNGRRURIDSULYDWHUHVLGHQFHLQ0DGLVRQ,QGLDQD
:KLOH&DURO+RUWRQRZQVWKHUHVLGHQFHLWLVRFFXSLHGE\KHU
VRQsDPHV%RZ\HU0DUWLQEHOLHYHG%RZ\HUZDVGDWLQJKLV
H[ZLIHDQGKHZDQWHGWRIULJKWHQKLP
   $IWHU OLJKWLQJ WKH ERPEjV IXVH DQG GHWRQDWLQJ LW 0DUWLQ
IOHG+HGHYLVHGDQDOLELIRUWKHFULPHDQGKHKDGDIULHQG
GHVWUR\ KLV PDWHULDOV  0DUWLQ DOVR GHVWUR\HG WKH VKRHV KH
ZRUH GXULQJ WKH FULPH DQG DVNHG KLV FRZRUNHUV WR OLH WR
LQYHVWLJDWRUV0DUWLQDVNHGDQH\HZLWQHVVWRWKHFULPHWROLH
DQGKHFRQYLQFHGDIULHQGWROLHWRDIHGHUDOJUDQGMXU\DERXW
KLV NQRZOHGJH RI WKH ERPELQJ  0DUWLQ ZDV LQGLFWHG IRU
REVWUXFWLRQ RI MXVWLFH FRQVWUXFWLQJ DQG SRVVHVVLQJ DQ
XQUHJLVWHUHGILUHDUPWKHERPEPDNLQJDQGLQGXFLQJIDOVH
VWDWHPHQWV WR IHGHUDO DJHQWV DQG YLRODWLQJ WKH IHGHUDO
ERPELQJVWDWXWH
    0DUWLQY3HUH]                               1R       1R                                0DUWLQY3HUH]       

FRQVHTXHQFHVRIKLVPLVWDNHl+HQGHUVRQY8QLWHG6WDWHV               ,Q sXO\ RI  SXUVXDQW WR D SOHD DJUHHPHQW ZLWK WKH
)GWK&LUVHHDOVR8QLWHG6WDWHVY          8QLWHG 6WDWHV 0DUWLQ SOHG JXLOW\ WR WKH IHGHUDO ERPELQJ
(PPDQXHO)GWK&LU0RUDOHVY              FKDUJHV XQGHU  86&  L DQG WKH REVWUXFWLRQ
8QLWHG6WDWHV)GWK&LU                    FKDUJHV XQGHU  86&    $V SDUW RI KLV SOHD
                                                                      DJUHHPHQW0DUWLQDGPLWWHGKLVJXLOWDVWRDOOIRXUFRXQWVRI
  :KDW PDWWHUV IRU 0DUWLQ WRGD\ KRZHYHU LV WKDW KH KDV     WKHLQGLFWPHQW7KHSOHDDJUHHPHQWDOVRLQFOXGHGH[WHQVLYH
VDWLVILHGWKHUHTXLUHPHQWVRIWKH6HFWLRQVDYLQJVFODXVH        VWLSXODWHGIDFWVDVWR0DUWLQjVJXLOW2Q'HFHPEHUWKH
+H LV HQWLWOHG WR D KHDULQJ XQGHU 6HFWLRQ   )RU WKH   FRXUW VHQWHQFHG 0DUWLQ WR RQH KXQGUHG DQG HLJKW PRQWKV
IRUHJRLQJ UHDVRQV ZH 5(0$1' WR WKH GLVWULFW FRXUW IRU        FRQILQHPHQWWKUHH\HDUVVXSHUYLVHGUHOHDVHDQGUHVWLWXWLRQWR
IXUWKHUSURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ                     +RUWRQDQG%RZ\HU
                                                                         $OWKRXJKKHKDGSOHGJXLOW\WRWKHFKDUJHV0DUWLQDSSHDOHG
                                                                      KLVFRQYLFWLRQ+HDUJXHGWKDWKLVFRQGXFWGLGQRWFRQVWLWXWH
                                                                      D IHGHUDO RIIHQVH EHFDXVH WKHUH ZDV QRW D VXIILFLHQW QH[XV
                                                                      EHWZHHQ KLV FRQGXFW DQG LQWHUVWDWH FRPPHUFH UHO\LQJ RQ
                                                                      8QLWHG6WDWHVY/RSH]860DUWLQVDLGWKH
                                                                      VWLSXODWHGIDFWVLQKLVFDVHZHUHLQVXIILFLHQWHYLGHQFHRIKLV
                                                                      JXLOW XQGHU 6HFWLRQ L  7KH 6HYHQWK &LUFXLW UHMHFWHG
                                                                      0DUWLQjVDSSHDOVWDWLQJWKHFKDOOHQJHWRWKHVXIILFLHQF\RIWKH
                                                                      HYLGHQFH ZDV PDGH XQUHYLHZDEOH E\ 0DUWLQjV JXLOW\ SOHD
                                                                      7KH FRXUW IRXQG WKDW WKH VWLSXODWHG IDFWV ZHUH LQWHQGHG WR
                                                                      HVWDEOLVK WKH QH[XV WR LQWHUVWDWH FRPPHUFH DV UHTXLUHG E\
                                                                      6HFWLRQL%HFDXVH/RSH]ZDVGHFLGHGPRUHWKDQD\HDU
                                                                      EHIRUH0DUWLQHQWHUHGKLVSOHDWKHQHFHVVLW\RIHVWDEOLVKLQJD
                                                                      QH[XV WR LQWHUVWDWH FRPPHUFH ZDV FOHDU  8QLWHG 6WDWHV Y
                                                                      0DUWLQ)G
UHGHVLJQDWHGDVRSLQLRQ)G
                                                                      WK&LU
                                                                         0DUWLQ WKHQ EHJDQ ILOLQJ D VHULHV RI PRWLRQV ZLWK WKH
                                                                      FRQYLFWLQJFRXUW2Q)HEUXDU\0DUWLQILOHGDPRWLRQ
                                                                      WRFRUUHFWWKHMXGJPHQWLQWKH,QGLDQDGLVWULFWFRXUW7KHFRXUW
                                                                      UXOHGWKDWWKLVPRWLRQZDVSURSHUO\FRQVWUXHGDV0DUWLQjVILUVW
                                                                      PRWLRQIRUFROODWHUDOUHOLHIXQGHU86&0DUWLQ
                                                                      DWWDFNHGKLVFRQYLFWLRQRQWKHREVWUXFWLRQRIMXVWLFHFKDUJH
                                                                      +H FODLPHG KH SOHG JXLOW\ WR D FULPH KH GLG QRW FRPPLW
                                                                      EHFDXVH RI D YDULDQFH EHWZHHQ WKH VWLSXODWHG IDFWV DQG WKH
                                                                      LQGLFWPHQW  +H GLG QRW FODLP WKDW KLV JXLOW\ SOHD ZDV
                                                                      LQYROXQWDU\RUXQLQWHOOLJHQWQRUGLGKHUDLVHDQ\/RSH]LVVXH
                                                                      UHJDUGLQJ WKH FRQQHFWLRQ ZLWK LQWHUVWDWH FRPPHUFH  7KH
                                                                      FRQYLFWLQJFRXUWORFDWHGLQWKH6RXWKHUQ'LVWULFWRI,QGLDQD
     0DUWLQY3HUH]                                 1R       1R                                 0DUWLQY3HUH]        

GHQLHGWKH6HFWLRQPRWLRQILQGLQJWKHREVWUXFWLRQ              IDFWXDOLQQRFHQFH7KH6HYHQWK&LUFXLWKHOGWKDWsRQHVGRHV
DUJXPHQWZDVSURFHGXUDOO\GHIDXOWHG0DUWLQZDLYHGDOO               QRWTXDOLI\IRUDFODLPRIDFWXDOLQQRFHQFHXQGHU6HFWLRQ
QRQMXULVGLFWLRQDO GHIHFWV E\ KLV JXLOW\ SOHD DQG  RQ WKH   EHFDXVH LW GRHV QRW VWDWH D QHZ UXOH RI FRQVWLWXWLRQDO ODZ
PHULWV WKH 6HFWLRQ  REVWUXFWLRQ RI MXVWLFH FKDUJH ZDV       PHUHO\DQHZUXOHRIVWDWXWRU\FRQVWUXFWLRQ,GDW7KH
MXVWLILHGE\WKHVWLSXODWHGIDFWV                                      FRXUWZHQWRQWRVD\WKDWWKHVDYLQJVFODXVHRI6HFWLRQ
                                                                        PLJKWSHUPLWWKHGHIHQGDQWUHOLHIXQGHU6HFWLRQ7KDW
  2QsXQH0DUWLQILOHGDQRWLFHRIDSSHDOWRWKH6HYHQWK            FODLP ZRXOG QRW EH IULYRORXV WKH 6HYHQWK &LUFXLW VDLG
&LUFXLW7KHGLVWULFWFRXUWFRQVLGHUHGWKLVPRWLRQDUHTXHVW           EHFDXVHsRQHVZDVGHFLGHGDIWHUWKHGHIHQGDQWILOHGKLVILUVW
IRUFHUWLILFDWHRIDSSHDODELOLW\XQGHU86&F          6HFWLRQ  PRWLRQ DQG EHFDXVH LW LQYROYHV VWDWXWRU\
7KLVPRWLRQZDVGHQLHG2Q0DUFKWKH6HYHQWK                 LQWHUSUHWDWLRQ,GDW7KHVLWXDWLRQLVSUHFLVHO\WKHVDPH
&LUFXLWUHYLHZHGWKHILQDORUGHURIWKHGLVWULFWFRXUWDQGWKH          IRU0DUWLQ
UHFRUG RI WKH 6HFWLRQ  UHTXHVW  7KH FRXUW IRXQG QR
VXEVWDQWLDOVKRZLQJRIDGHQLDORIDFRQVWLWXWLRQDOULJKWDQG             0DUWLQIXUWKHUDUJXHVWKDWWKHWUDQVIHURIKLVILUVW6HFWLRQ
GHQLHG0DUWLQjVUHTXHVWIRUDFHUWLILFDWHRIDSSHDODELOLW\           SHWLWLRQZDVLPSURSHU$VDUHVXOWKHVD\VKLVVHFRQG
                                                                        6HFWLRQSHWLWLRQZDVQRWVXFFHVVLYHDQGLWVKRXOGKDYH
   :KLOHWKLVGHFLVLRQZDVSHQGLQJKRZHYHU0DUWLQILOHGD             EHHQJUDQWHG,Q,QUH6KHOWRQ)GWK&LU
mPRWLRQ WR GLVPLVV WKH LQGLFWPHQW DJDLQVW KLP IRU ODFN RI      FLWLQJ$GDPVY8QLWHG6WDWHV)GQG
MXULVGLFWLRQl UHTXHVWLQJ UHOLHI IURP KLV FRQYLFWLRQV  7KH      &LUWKLVFRXUWKHOGWKDWZLWKUHJDUGWRSURVHOLWLJDQWV
,QGLDQDGLVWULFWFRXUWFRQVWUXHGWKLVDVDVHFRQGPRWLRQXQGHU          LQSDUWLFXODU
6HFWLRQ7KHGLVWULFWFRXUWGHQLHGWKHPRWLRQEHFDXVH
0DUWLQKDGQRWUHFHLYHGSHUPLVVLRQIURPWKH6HYHQWK&LUFXLW               µ>'@LVWULFW FRXUWV VKRXOG QRW UHFKDUDFWHUL]H D PRWLRQ
WR ILOH D VHFRQG RU VXFFHVVLYH SHWLWLRQ  0DUWLQ WKHQ ILOHG     SXUSRUWHGO\ PDGH XQGHU VRPH RWKHU UXOH DV D PRWLRQ
DQRWKHUPRWLRQWKLVWLPHHQWLWOHGm$GPLQLVWUDWLYH1RWLFHl               PDGH XQGHU   XQOHVV D WKH PRYDQW ZLWK
UHTXHVWLQJ UHOLHI IURP KLV FRQYLFWLRQV  7KH GLVWULFW FRXUW       NQRZOHGJHRIWKHSRWHQWLDODGYHUVHFRQVHTXHQFHVRIVXFK
WUHDWHGWKLVDVDWKLUGSHWLWLRQXQGHU6HFWLRQDQGGHQLHG            UHFKDUDFWHUL]DWLRQ DJUHHV WR KDYH WKH PRWLRQ VR
UHOLHI DJDLQ EHFDXVH 0DUWLQ KDG QR SHUPLVVLRQ IURP WKH           UHFKDUDFWHUL]HG RU E WKH FRXUW ILQGV WKDW
6HYHQWK&LUFXLWWRILOH                                                  QRWZLWKVWDQGLQJ LWV GHVLJQDWLRQ WKH PRWLRQ VKRXOG EH
                                                                          FRQVLGHUHGDVPDGHXQGHUEHFDXVHRIWKHQDWXUH
  ,Q sXQH RI  0DUWLQ ILOHG D SHWLWLRQ WR WKH 6HYHQWK       RI WKH UHOLHI VRXJKW DQG RIIHUV WKH PRYDQW WKH
&LUFXLW VHHNLQJ SHUPLVVLRQ WR ILOH D VHFRQG RU VXFFHVVLYH        RSSRUWXQLW\WRZLWKGUDZWKHPRWLRQUDWKHUWKDQKDYHLWVR
SHWLWLRQ XQGHU 6HFWLRQ   +H UHDVVHUWHG KLV /RSH]             UHFKDUDFWHUL]HGj8QOHVVVXFKDZDUQLQJLVSURYLGHGD
DUJXPHQWWKLVWLPHFLWLQJWRDQHZGHFLVLRQLQsRQHVY8QLWHG           UHFKDUDFWHUL]HG   PRWLRQ PXVW QRW EH FRXQWHG
6WDWHV  86   LQ ZKLFK WKH 6XSUHPH &RXUW          DJDLQVWWKHSULVRQHUIRUSXUSRVHVRIWKHEDURQVXFFHVVLYH
GHWHUPLQHG WKDW D FRQYLFWLRQ XQGHU 6HFWLRQ L IRU              PRWLRQV
ERPELQJ DQ RZQHURFFXSLHG UHVLGHQFH FRXOG QRW VWDQG
EHFDXVH WKHUH ZDV LQVXIILFLHQW FRQQHFWLRQ EHWZHHQ WKDW            ,W LV XQFOHDU ZKHWKHU RU QRW 0DUWLQ UHFHLYHG DQ\ VXFK
GZHOOLQJ DQG LQWHUVWDWH FRPPHUFH  7KH 6HYHQWK &LUFXLW           ZDUQLQJVLQWKH(DVWHUQ'LVWULFWRI.HQWXFN\7KHUXOHLQWKH
ZHLJKHGWKHVHDUJXPHQWVDQGGHQLHG0DUWLQOHDYHWRILOHD               6HYHQWK&LUFXLWLVWKHVDPHm$OOZHKROGWRGD\LVWKDWZH
VHFRQGRUVXFFHVVLYHSHWLWLRQXQGHU6HFWLRQ                       ZRQ
WGHHPD5XOHRURWKHUPLVODEHOHGPRWLRQDVHFWLRQ
                                                                        PRWLRQXQOHVVWKHPRYDQWKDVEHHQZDUQHGDERXWWKH
     0DUWLQY3HUH]                               1R      1R                                  0DUWLQY3HUH]         

EHJXLOW\RIWKHIHGHUDOERPELQJVWDWXWHEHFDXVHKHERPEHG             2Q sXO\   0DUWLQ ILOHG D m3HWLWLRQ IRU :ULW RI
DSULYDWHUHVLGHQFHZKLFKLVHVVHQWLDOO\DQmDFWXDOLQQRFHQFHl      +DEHDV&RUSXVlLQWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH
DUJXPHQW:HZLOOQRWGHPDQGWKDW0DUWLQXVHWKHPDJLF              (DVWHUQ'LVWULFWRI.HQWXFN\WKHIHGHUDOGLVWULFWFRXUWKDYLQJ
ZRUGVSDUWLFXODUO\EHFDXVHKHLVUHSUHVHQWLQJKLPVHOILQWKLV       MXULVGLFWLRQRYHU0DUWLQjVSODFHRIFRQILQHPHQW7KHGLVWULFW
PDWWHU6HH+DLQHVY.HUQHU86             FRXUWLQ.HQWXFN\FRQVWUXHGWKHSHWLWLRQDVDPRWLRQIRUUHOLHI
                                                                     IURPKLVFRQYLFWLRQDQGVHQWHQFHSXUVXDQWWR6HFWLRQ
   0DUWLQDUJXHVWKDWWKH6XSUHPH&RXUWjVGHFLVLRQLQsRQHV          DQGWUDQVIHUUHGWKHFDVHEDFNWRWKHGLVWULFWFRXUWLQ,QGLDQD
Y8QLWHG6WDWHV86SURYHVKLVLQQRFHQFH         7KHODWWHUFRXUWGLVPLVVHGWKHPRWLRQIRUODFNRIMXULVGLFWLRQ
,QWKDWFDVHWKHGHIHQGDQWZDVFRQYLFWHGXQGHUWKHIHGHUDO          EHFDXVH0DUWLQVWLOOODFNHG6HYHQWK&LUFXLWSHUPLVVLRQIRUD
DUVRQVWDWXWHWKHVDPHVWDWXWHDWLVVXHLQ0DUWLQjVFRQYLFWLRQ     VXFFHVVLYHSHWLWLRQXQGHU6HFWLRQ
RIGHOLEHUDWHO\VHWWLQJILUHWRDKRXVHRZQHGDQGRFFXSLHGE\
KLVFRXVLQ,GDW7RHVWDEOLVKIHGHUDOMXULVGLFWLRQE\         2Q)HEUXDU\0DUWLQILOHGDm3HWLWLRQIRU:ULWRI
ZD\RIDFRQQHFWLRQWRLQWHUVWDWHFRPPHUFHWKHJRYHUQPHQW           +DEHDV&RUSXV3XUVXDQWWR86&lLQWKH(DVWHUQ
FODLPHG WKH KRXVH ZDV XVHG LQ REWDLQLQJ D PRUWJDJH          'LVWULFWRI.HQWXFN\:LWKRXWUHTXLULQJWKHIHGHUDOZDUGHQ
KRPHRZQHUjVLQVXUDQFHDQGQDWXUDOJDVXWLOLWLHV,GDW       WR ILOH D UHVSRQVH WKH GLVWULFW FRXUW GLVPLVVHG ZLWKRXW
7KH&RXUWUHIXVHGWRILQGWKDWDKRXVHZLWKRQO\WKLVNLQGRI        SUHMXGLFH WKH 6HFWLRQ  FODLP DV D VXFFHVVLYH SHWLWLRQ
FRQQHFWLRQ ZDV VXIILFLHQWO\ LQWHJUDWHG LQWR WKH VWUHDP RI     EURXJKW DIWHU VXFFHVVLYH FODLPV XQGHU 6HFWLRQ   2Q
LQWHUVWDWHFRPPHUFH,GDW                                    0D\0DUWLQILOHGQRWLFHRIDSSHDO
   7KH8QLWHG6WDWHVDUJXHVWKDWWKHKRXVHDWLVVXHLQ0DUWLQjV        ,QUHYLHZLQJWKHGLVPLVVDORIDSHWLWLRQIRUZULWRIKDEHDV
FDVHLVXQTXHVWLRQDEO\LQWKHVWUHDPRILQWHUVWDWHFRPPHUFH         FRUSXV ZH UHYLHZ WKH GLVWULFW FRXUW
V OHJDO FRQFOXVLRQV GH
%HFDXVH&DURO+RUWRQGRHVQRWOLYHLQWKHKRXVHEXWKHUVRQ         QRYR6WDSOHWRQY:ROIH)GWK&LU
sDPHV%RZ\HUGRHVWKH8QLWHG6WDWHVDVNVXVWRDVVXPHWKDW          :HUHYLHZIDFWXDOILQGLQJVIRUFOHDUHUURU%XOOVYsRQHV
WKHKRXVHLVUHQWHGWR%RZ\HU5HQWDOSURSHUW\LVPRVWRIWHQ        )GWK&LU
GHHPHGWRKDYHVXIILFLHQWFRQQHFWLRQWRLQWHUVWDWHFRPPHUFH
6HH5XVVHOOY8QLWHG6WDWHV86VHHDOVR            $SHWLWLRQIRUKDEHDVFRUSXVPXVWEHILOHGLQWKHGLVWULFW
8QLWHG6WDWHVY7XUQHU)GWK&LU,Q          FRXUW WKDW KDV MXULVGLFWLRQ RYHU D SULVRQHUjV SODFH RI
VSLWHRIWKH8QLWHG6WDWHVjDUJXPHQWWKHUHLVQRHYLGHQFHWKDW      FRQILQHPHQW6HFWLRQDVWDWHVm:ULWVRIKDEHDVFRUSXV
WKHKRXVHZDVDFWXDOO\UHQWHGWR%RZ\HUWKURXJKDQDUPjV             PD\EHJUDQWHGE\WKH6XSUHPH&RXUWDQ\MXVWLFHWKHUHRIWKH
OHQJWKWUDQVDFWLRQ,ILWZDVQRWWKHQ0DUWLQLVFRUUHFWLQKLV    GLVWULFWFRXUWVDQGDQ\FLUFXLWMXGJHZLWKLQWKHLUUHVSHFWLYH
FODLPWKDWKHLVIDFWXDOO\LQQRFHQWRIYLRODWLRQRIWKHDUVRQ        MXULVGLFWLRQV7KHRUGHURIDFLUFXLWMXGJHVKDOOEHHQWHUHGLQ
VWDWXWH                                                             WKH UHFRUGV RI WKH GLVWULFW FRXUW RI WKH GLVWULFW ZKHUHLQ WKH
                                                                     UHVWUDLQWFRPSODLQHGRILVKDGl$VDUHVXOWKDEHDVFRUSXV
  7KH6HYHQWK&LUFXLWjVUHMHFWLRQRI0DUWLQjV6HFWLRQ           SURFHHGLQJV PD\ RFFXU LQ D FRXUW RI FRQILQHPHQW WKDW LV
FODLPVPD\EHXQGHUVWRRGLQWKHFRQWH[WRIDUHFHQWGHFLVLRQ         GLIIHUHQWIURPWKHFRXUWRIFRQYLFWLRQ
IURPWKDWFRXUW,Q8QLWHG6WDWHVY3UHYDWWH)G
WK&LUWKH6HYHQWK&LUFXLWFRQVLGHUHGDVLPLODUVHW          ,QDWWKHEHKHVWRIWKHsXGLFLDO&RQIHUHQFH&RQJUHVV
RIFLUFXPVWDQFHVDULVLQJRXWRIWKHIHGHUDODUVRQVWDWXWH7KH      DPHQGHG 6HFWLRQ  WR DOORZ WKH FRXUW WKDW LPSRVHG
SULVRQHULQWKDWFDVHZDVDOVRLQFDUFHUDWHGRXWRIWKHFLUFXLW      VHQWHQFH UDWKHU WKDQ WKH FRXUW RI FRQILQHPHQW WR KHDU D
DQG WKH SULVRQHU DOVR UDLVHG sRQHV DV DQ DUJXPHQW WR KLV   FROODWHUDO DWWDFN RQ WKDW VHQWHQFH 7KH 6XSUHPH &RXUW
                                                                     REVHUYHG LQ 8QLWHG 6WDWHV Y +D\PDQ  86  
      0DUWLQY3HUH]                                  1R    1R                                    0DUWLQY3HUH]          

 WKDW &RQJUHVV DPHQGHG 6HFWLRQ  WR PHHW             G&LUDQG7ULSDWLY+HQPDQ)G
SUDFWLFDO GLIILFXOWLHV WKDW KDG DULVHQ LQ DGPLQLVWHULQJ WKH     WK&LUFHUWGHQLHG86RUEHFDXVH
KDEHDVFRUSXVMXULVGLFWLRQRIWKHIHGHUDOFRXUWV>7@KHVROH       WKH SHWLWLRQHU LV SURFHGXUDOO\ EDUUHG IURP SXUVXLQJ UHOLHI
SXUSRVH ZDV WR PLQLPL]H WKH GLIILFXOWLHV HQFRXQWHUHG LQ         XQGHU6HFWLRQVHH,QUH9LDO)GQ
KDEHDV FRUSXV KHDULQJV E\ DIIRUGLQJ WKH VDPH ULJKWV LQ         WK&LU,WLVWKHSHWLWLRQHU
VEXUGHQWRHVWDEOLVKWKDW
DQRWKHU DQG PRUH FRQYHQLHQW IRUXP 6HH DOVR 'DYLV Y          KLVUHPHG\XQGHU6HFWLRQLVLQDGHTXDWHRULQHIIHFWLYH
8QLWHG6WDWHV86QRWLQJWKDW           'H6LPRQHY/DF\)GWK&LU
ZDVLQWHQGHGWRDIIRUGIHGHUDOSULVRQHUVDUHPHG\LGHQWLFDOLQ
VFRSHWRIHGHUDOKDEHDVFRUSXV                                         7KXV XQGHU 6HFWLRQ 
V VDYLQJV FODXVH 0DUWLQ PXVW
                                                                       VKRZWKDWKHLVHQWLWOHGWRSXUVXHUHOLHIXQGHUKDEHDVFRUSXV
   86&m)HGHUDOFXVWRG\UHPHGLHVRQPRWLRQ              EHFDXVHKLVUHPHG\XQGHU6HFWLRQ ZDVLQDGHTXDWHRU
DWWDFNLQJVHQWHQFHlVWDWHV                                           LQHIIHFWLYH7KLVLVDULJRURXVVKRZLQJEHFDXVHm1RFLUFXLW
                                                                       FRXUWKDVWRGDWHSHUPLWWHGDSRVW$('3$>$QWL7HUURULVP
    $ SULVRQHU LQ FXVWRG\ XQGHU VHQWHQFH RI D FRXUW            DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW ZKLFK DPHQGHG 6HFWLRQ
    HVWDEOLVKHGE\$FWRI&RQJUHVVFODLPLQJWKHULJKWWREH            @SHWLWLRQHUZKRZDVQRWHIIHFWLYHO\PDNLQJDFODLPRI
    UHOHDVHGXSRQWKHJURXQGWKDWWKHVHQWHQFHZDVLPSRVHG             µDFWXDO LQQRFHQFHj WR XWLOL]H   YLD  
V µVDYLQJV
    LQ YLRODWLRQ RI WKH &RQVWLWXWLRQ RU ODZV RI WKH 8QLWHG    FODXVHjDVDZD\RIFLUFXPYHQWLQJ
VUHVWULFWLRQVRQWKH
    6WDWHV RU WKDW WKH FRXUW ZDV ZLWKRXW MXULVGLFWLRQ WR      ILOLQJRIVHFRQGRUVXFFHVVLYHKDEHDVSHWLWLRQVl&KDUOHVY
    LPSRVHVXFKVHQWHQFHRUWKDWWKHVHQWHQFHZDVLQH[FHVV           &KDQGOHU)GDW
    RI WKH PD[LPXP DXWKRUL]HG E\ ODZ RU LV RWKHUZLVH
    VXEMHFWWRFROODWHUDODWWDFNPD\PRYHWKHFRXUWZKLFK                $Q XQGHUVWDQGLQJ RI mDFWXDO LQQRFHQFHl FDQ EH GHULYHG
    LPSRVHGWKHVHQWHQFHWRYDFDWHVHWDVLGHRUFRUUHFWWKH           IURP%RXVOH\Y8QLWHG6WDWHV86m7R
    VHQWHQFH$QDSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXV         HVWDEOLVKDFWXDOLQQRFHQFHSHWLWLRQHUPXVWGHPRQVWUDWHWKDW
    LQ EHKDOI RI D SULVRQHU ZKR LV DXWKRUL]HG WR DSSO\ IRU   LQOLJKWRIDOOWKHHYLGHQFHLWLVPRUHOLNHO\WKDQQRWWKDWQR
    UHOLHI E\ PRWLRQ SXUVXDQW WR WKLV VHFWLRQ VKDOO QRW EH   UHDVRQDEOH MXURU ZRXOG KDYH FRQYLFWHG KLP LQWHUQDO
    HQWHUWDLQHGLILWDSSHDUVWKDWWKHDSSOLFDQWKDVIDLOHGWR         FLWDWLRQVDQGTXRWDWLRQVRPLWWHG7KH&RXUWZHQWRQWRVD\
    DSSO\IRUUHOLHIE\PRWLRQWRWKHFRXUWZKLFKVHQWHQFHG          m,WLVLPSRUWDQWWRQRWHLQWKLVUHJDUGWKDWµDFWXDOLQQRFHQFHj
    KLPRUWKDWVXFKFRXUWKDVGHQLHGKLPUHOLHIXQOHVVLW           PHDQVIDFWXDOLQQRFHQFHQRWPHUHOHJDOLQVXIILFLHQF\,Q
    DOVRDSSHDUVWKDWWKHUHPHG\E\PRWLRQLVLQDGHTXDWHRU            RWKHUZRUGVWKH*RYHUQPHQWLV QRWOLPLWHGWRWKHH[LVWLQJ
    LQHIIHFWLYHWRWHVWWKHOHJDOLW\RIKLVGHWHQWLRQ          UHFRUG WR UHEXW DQ\ VKRZLQJ WKDW SHWLWLRQHU PLJKW PDNH
                                                                       5DWKHUWKH*RYHUQPHQWVKRXOGEHSHUPLWWHGWRSUHVHQWDQ\
7KLV VHFWLRQ FODULILHV WKH LQWHUUHODWLRQVKLS EHWZHHQ KDEHDV      DGPLVVLEOHHYLGHQFHRISHWLWLRQHU
VJXLOWl,GDW
FRUSXV SURFHHGLQJV XQGHU 6HFWLRQ  DQG WKH PRUH
VWUHDPOLQHGSURFHHGLQJVXQGHU6HFWLRQ7KHODWWHULVD             7KLVUHTXLUHPHQWRIDVKRZLQJRImDFWXDOLQQRFHQFHlEULQJV
FRPSOHPHQWWRWKHIRUPHUDQGLWZDVQRWLQWHQGHGWRVXSSODQW          XVWR0DUWLQjVPDLQDUJXPHQW+HPDLQWDLQVWKDWKHFRXOGQRW
WKHIRUPHU&KDUOHVY&KDQGOHU)GWK&LU

  6LJQLILFDQWO\WKH6HFWLRQUHPHG\LVQRWFRQVLGHUHG
                                                                           
                                                                            :H  KDYH GLVFXVVHG WKH UHODWLRQVKLS EHWZHHQ 6HFWLRQ  DQG
                                                                       6HFWLRQ  PRUH IXOO\ LQ XQSXEOLVKHG RSLQLRQV 6HH HJ (DUO\ Y
LQDGHTXDWHRULQHIIHFWLYHVLPSO\EHFDXVH6HFWLRQUHOLHI           /DPDQQD 1R  HW DO  :/  WK &LU sXQH  
KDVDOUHDG\EHHQGHQLHGVHH,QUH'RUVDLQYLO)G           :H QRZ SXEOLVK WKLV RSLQLRQ LQ RUGHU WR PRUH FOHDUO\ DIILUP WKH DXWKRULW\