Court Opinion

ID: 2970108
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:04:36.749735+00
Date Added: 2024-06-11T15:01:34.461662
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

 521$/' ),(/'6                  ;
         3HWLWLRQHU$SSHOOHH     
                                  
                                    1R
          Y                      
                                   !
                                  
 0$5*$5(7 %$*/(<:DUGHQ 
      5HVSRQGHQW$SSHOODQW 
                                 1
     $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
    1Rn.DWKOHHQ0F'RQDOG2j0DOOH\
                    'LVWULFWsXGJH
                   $UJXHG'HFHPEHU
             'HFLGHGDQG)LOHG'HFHPEHU
   %HIRUHs21(6DQG&2/(&LUFXLWsXGJHV6$5*86
                     'LVWULFWsXGJH

    
     7KH +RQRUDEOH (GPXQG $ 6DUJXV sU 8QLWHG 6WDWHV 'LVWULFW sXGJH
IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

                                    
     )LHOGVY%DJOH\                              1R

                     BBBBBBBBBBBBBBBBB
                          &2816(/
$5*8('06FRWW&ULVV2)),&(2)7+($77251(<
*(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21
&ROXPEXV 2KLR IRU $SSHOODQW  &DUORV :DUQHU
&8<$+2*$ &2817< 38%/,& '()(1'(5 2)),&(
&OHYHODQG2KLRIRU$SSHOOHH21%5,()06FRWW&ULVV
2 ) ),& (  2 ) 7 + (  $ 7 7 2 5 1 ( <  * ( 1 ( 5 $ /
&255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR
IRU $SSHOODQW  'RQDOG *UHHQ &8<$+2*$ &2817<
38%/,& '()(1'(5 2)),&( &OHYHODQG 2KLR IRU
$SSHOOHH
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  3(5 &85,$0  7KH GLVWULFW FRXUW JUDQWHG SHWLWLRQHU
DSSHOOHH5RQDOG)LHOGVDZULWRIKDEHDVFRUSXVEHFDXVHKLV
GXHSURFHVVULJKWVDQGULJKWVWRFRXQVHOZHUHYLRODWHGGXHWR
KLVODZ\HUjVLQHIIHFWLYHDVVLVWDQFH)LHOGVjVODZ\HUQHLWKHU
QRWLILHG)LHOGVRIDVWDWHFRXUWDSSHDORIKLVVXFFHVVIXOPRWLRQ
WR VXSSUHVV HYLGHQFH QRU UHSUHVHQWHG )LHOGV GXULQJ WKDW
DSSHDO0DUJDUHW%DJOH\WKHZDUGHQDSSHDOHGWKHGLVWULFW
FRXUWjV JUDQW RI WKH ZULW RI KDEHDV FRUSXV WR WKLV &RXUW
%HFDXVH WKH GLVWULFW FRXUWjV GHFLVLRQ LV ZHOOUHDVRQHG DQG
EHFDXVH%DJOH\GLGQRWUDLVHLVVXHVEH\RQGWKRVHFRQVLGHUHG
E\WKHGLVWULFWFRXUWZHVHHQRUHDVRQWRHPEHOOLVKXSRQWKH
GLVWULFWFRXUWjVRSLQLRQZKLFKZHDWWDFKDVDQDSSHQGL[:H
$)),50WKHGLVWULFWFRXUWjVRSLQLRQDQG$'237LWDVRXU
RZQ
1R                                  )LHOGVY%DJOH\        

                           $33(1',;

          81,7('67$7(6',675,&7&2857
           1257+(51',675,&72)2+,2
                ($67(51',9,6,21
521$/' ),(/'6              &DVH 1R FY
                               

        3ODLQWLII         s8'*( 2
0$//(<
   Y                     
                           0(025$1'80 	 25'(5
0$5*$5(7 %$*/(< 
:DUGHQ /RUDLQ             
&RUUHFWLRQDO ,QVWLWXWLRQ 
HW DO                   
        'HIHQGDQWV       

   5RQDOG)LHOGVILOHGWKLVKDEHDVFRUSXVSHWLWLRQSXUVXDQWWR
86&FKDOOHQJLQJKLVLQFDUFHUDWLRQDIWHUSOHDGLQJ
mQRFRQWHVWlWRWZRFRXQWVRIDJJUDYDWHGWUDIILFNLQJ2KLR
5HY&RGHDQGRQHFRXQWRISRVVHVVLRQRIFULPLQDO
WRROV2KLR5HY&RGH)LHOGVDOOHJHVWKDWKHLV
EHLQJ KHOG XQFRQVWLWXWLRQDOO\ EHFDXVH KH ZDV GHQLHG WKH
HIIHFWLYH DVVLVWDQFH RI FRXQVHO LQ IDFW DQ\ DVVLVWDQFH RI
FRXQVHO LQ WKH VWDWHjV DSSHDO RI WKH WULDO FRXUWjV UXOLQJ
VXSSUHVVLQJWKHHYLGHQFHXSRQZKLFKWKHFKDUJHVDJDLQVWKLP
ZHUHEDVHG7KLVFDVHZDVGHVLJQDWHGWRDQDGPLQLVWUDWLYH
WUDFN DQG SXUVXDQW WR ORFDO UXOH  E DQG  D WKH
&RXUWUHIHUUHGLWWR0DJLVWUDWHsXGJH'DYLG63HUHOPDQIRU
DUHSRUWDQGUHFRPPHQGDWLRQ2Q1RYHPEHUWKH
0DJLVWUDWHsXGJHUHFRPPHQGHGWKDWWKH&RXUWJUDQW)LHOGVjV
SHWLWLRQ  5HVSRQGHQWV ILOHG D WLPHO\ REMHFWLRQ WR WKH
0DJLVWUDWH sXGJHjV 5HSRUW DQG 5HFRPPHQGDWLRQ  )RU WKH
UHDVRQVVWDWHGEHORZ)LHOGVjV3HWLWLRQIRU+DEHDV&RUSXVLV
*5$17('
     )LHOGVY%DJOH\                               1R       1R                                      )LHOGVY%DJOH\               

,%$&.*5281'                                                          ,7,66225'(5('
   2Q'HFHPEHUSROLFHRIILFHUVGLVFRYHUHGFRFDLQH                          
GXULQJDVHDUFKRI5RQDOG)LHOGVjVEDJIROORZLQJKLVDUULYDO
DWWKH&OHYHODQG+RSNLQV,QWHUQDWLRQDO$LUSRUW)LHOGVZDV
DUUHVWHGWDNHQLQWRFXVWRG\DQGFKDUJHGZLWKWZRFRXQWVRI                          **********************************
DJJUDYDWHG WUDIILFNLQJ DQG RQH FRXQW RI SRVVHVVLRQ RI
FULPLQDO WRROV  )LHOGV UHWDLQHG FRXQVHO DWWRUQH\ 'RQDOG                     .$7+/((10F'21$/'2j0$//(<
7LWWOHZKRILOHGD0RWLRQWR6XSSUHVV2Q0DUFK                          81,7('67$7(6',675,&7s8'*(
WKHWULDOFRXUWKHOGDVXSSUHVVLRQKHDULQJ2Q$SULO
WKHWULDOFRXUWVXSSUHVVHGWKHFRFDLQHEHFDXVHLWIRXQGWKDWLW
ZDVWKHIUXLWRIDQXQUHDVRQDEOHVHDUFKDQGVHL]XUH)LHOGV
ZDVUHOHDVHGIURPFXVWRG\DWWKDWWLPHRQDERQG
DQG ZDV SHUPLWWHG WR UHWXUQ WR KLV KRPH LQ 6HDWWOH
:DVKLQJWRQ
   2Q$SULOWKHVWDWHILOHGDQDSSHDOIURPWKHWULDO
FRXUWjV GHFLVLRQ WR VXSSUHVV WKH FRFDLQH  7KH VWDWH VHUYHG
)LHOGVjVDWWRUQH\'RQDOG7LWWOHEXWPDGHQRHIIRUWWRVHUYH
)LHOGV KLPVHOI  7LWWOH DSSDUHQWO\ QR ORQJHU EHOLHYHG KH
UHSUHVHQWHG)LHOGV7LWWOHVWDWHVLQKLVDIILGDYLWWKDWDWWKDW
WLPHKHLQIRUPHGERWKWKHSURVHFXWRUDQGWKHFRXUWRIDSSHDOV
WKDWKHKDGQRWEHHQUHWDLQHGWRUHSUHVHQW7LWWOHIRUWKHVWDWHjV
DSSHDODQGWKDWKHEHOLHYHGWKDW7LWWOHZDVLQGLJHQW7LWWOHGLG
QRWKRZHYHUILOHDPRWLRQWRZLWKGUDZIURPUHSUHVHQWDWLRQ
EHIRUHWKHDSSHDOVFRXUWUHDFKHGDGHFLVLRQRQWKHVXSSUHVVLRQ
LVVXHDQGQHLWKHU7LWWOHQRU)LHOGVILOHGDEULHIRQWKHPHULWV
  2Q)HEUXDU\WKH(LJKWK'LVWULFW&RXUWRI$SSHDOV
IRU WKH 6WDWH RI 2KLR UHYHUVHG WKH WULDO FRXUWjV RUGHU
VXSSUHVVLQJWKHHYLGHQFH6HH6WDWHY)LHOGV&X\DKRJD$SS
1RXQUHSRUWHG)HE7KHWULDOMXGJHODWHU
VLJQHG DQ DIILGDYLW VWDWLQJ WKDW WKH SURVHFXWRU KDG QRW
SURYLGHGWKHDSSHOODWHFRXUWZLWKDIXOOUHFRUG7KHWUDQVFULSW
VXEPLWWHG WR WKH DSSHOODWH FRXUW GLG QRW FRQWDLQ WKH WULDO
MXGJHjV VWDWHPHQW WKDW KH JUDQWHG WKH PRWLRQ WR VXSSUHVV
EHFDXVHKHGLGQRWILQGWKHSROLFHRIILFHUVjWHVWLPRQ\FUHGLEOH
  7KH RSLQLRQ ILUVW DSSHDUHG ZLWK 7LWWOHjV QDPH RQ LW DV
FRXQVHORIUHFRUG7LWWOHILOHGDPRWLRQDVNLQJWRKDYHKLV
QDPHUHPRYHGIURPWKHRSLQLRQ2Q)HEUXDU\WKH
    )LHOGVY%DJOH\                                1R       1R                                 )LHOGVY%DJOH\        

IURPVHHNLQJKDEHDVFRUSXVUHOLHIIRUWKDWHUURU6HH/HYHUHWW          &X\DKRJD &RXQW\ 3XEOLF 'HIHQGHU ILOHG D PRWLRQ IRU
Y6SHDUV)GWK'UDXJKYsDEH               UHFRQVLGHUDWLRQRIWKHDSSHOODWHFRXUWRSLQLRQEHFDXVH)LHOGV
)6XSS('0LFK                                   ZDVQRWUHSUHVHQWHGE\FRXQVHORQDSSHDO2Q)HEUXDU\
                                                                         WKH DSSHOODWH FRXUW GHQLHG WKH PRWLRQ IRU
  5HVSRQGHQW SURIIHUV QR HYLGHQFH WKDW )LHOGV LQYLWHG DQ\        UHFRQVLGHUDWLRQ DQG JUDQWHG 7LWWOHjV PRWLRQ WR UHPRYH KLV
HUURU KRZHYHU EXW PHUHO\ LQVLQXDWHV WKDW WKH &X\DKRJD          QDPHDVFRXQVHORIUHFRUGRQDSSHDO
&RXQW\3XEOLF'HIHQGHUVRIILFHDQG)LHOGVjVUHWDLQHGFRXQVHO
7LWWOHFROOXGHGWROHDYH)LHOGVZLWKRXWFRXQVHORQDSSHDOVR              7KH&X\DKRJD&RXQW\3XEOLF'HIHQGHUjVRIILFHWKHQILOHG
WKDW KH ZRXOG KDYH D UHDVRQ WR DSSHDO WKH UHYHUVDO RI WKH    DQDSSHDOWRWKH2KLR6XSUHPH&RXUWFODLPLQJWKDW)LHOGVZDV
VXSSUHVVLRQWRWKH6XSUHPH&RXUW7KLVDUJXPHQWERUGHUVRQ             GHQLHGWKHDVVLVWDQFHRIFRXQVHORQDSSHDO2QsXO\
WKHDEVXUGZK\ZRXOG7LWWOHFUHDWHDQLVVXHIRUDSSHDOZKHQ           WKH6XSUHPH&RXUWGHQLHGOHDYHWRDSSHDO)LHOGVDOVRILOHG
WKH UHPHG\ IRU WKDW HUURU ZRXOG EH WR SURYLGH )LHOGV ZLWK     DQDSSOLFDWLRQWRUHRSHQLQWKHDSSHOODWHFRXUWSXUVXDQWWR
FRXQVHORQDSSHDOVRPHWKLQJWKDW7LWWOHVLPSO\FRXOGKDYH              2KLR5XOHRI$SSHOODWH3URFHGXUH%2Q6HSWHPEHU
GRQHLQWKHILUVWLQVWDQFH7KLVDUJXPHQWDOVRLJQRUHVWKDWWKH        WKHDSSHOODWHFRXUWGHQLHGWKHDSSOLFDWLRQRQWKHEDVLV
2KLR&RXUWRI$SSHDOVDSSDUHQWO\ZRXOGKDGWRKDYHWDNHQ              WKDW m5XOH %   RQO\ SHUPLWV D GHIHQGDQW WR DSSO\ IRU
SDUWLQWKHFROOXVLRQZKHQLWDJUHHGWRJUDQW7LWWOHjVPRWLRQWR        UHRSHQLQJRIDQµDSSHDOIURPWKHMXGJPHQWRIFRQYLFWLRQDQG
UHPRYHKLVQDPHIURPWKHDSSHDO7KDW7LWWOHODWHUUHLQYROYHG          VHQWHQFHj EDVHG RQ D FODLP RI LQHIIHFWLYH DVVLVWDQFH RI
KLPVHOI LQ )LHOGVjV FDVH E\ ILOLQJ D PRWLRQ WR UHRSHQ         DSSHOODWH FRXQVHO  7KH DSSHOODWH MXGJPHQW DSSOLFDQW LV
SURFHHGLQJV DQG WKDW 7LWWOH ZRUNHG ZLWK WKH &X\DKRJD            DWWHPSWLQJWRUHRSHQLVQRWDQDSSHDOIURPDFRQYLFWLRQDQG
&RXQW\3XEOLF'HIHQGHUVRIILFHWRSURYLGHHYLGHQFHWKDWKH              VHQWHQFHEXWDQDSSHDOE\WKHVWDWHSXUVXDQWWR&ULP5s
GLG QRW EHOLHYH WKDW KH UHSUHVHQWHG )LHOGV RQ DSSHDO LV QRW   DQG$SS5%l6HH5HVS([:)LHOGVWKHQDSSHDOHG
HYLGHQFH RI FROOXVLRQ RU HYLGHQFH WKDW )LHOGV LQYLWHG WKLV     WKHDSSHOODWHFRXUWjVGHFLVLRQQRWWRUHRSHQWKHFDVHWRWKH
HUURUWRFUHDWHDQLVVXHIRUDSSHDOLWLVVLPSO\HYLGHQFHWKDW         6XSUHPH&RXUW7KH6XSUHPH&RXUWGLVPLVVHGWKHDSSHDODV
7LWWOHFDPHWRUHDOL]HWKDWKLVDEDQGRQPHQWRI)LHOGVZDVERWK          QRWLQYROYLQJDQ\VXEVWDQWLDOFRQVWLWXWLRQDOTXHVWLRQ
LPSURSHUDQGSUHMXGLFLDO7KH&RXUWILQGVWKLVDUJXPHQWWR
KDYHQRPHULW                                                            $IWHU WKH FDVH ZDV UHPDQGHG WR WKH WULDO FRXUW )LHOGV
                                                                        HQWHUHGDSOHDRIQRORFRQWHQGHUHWRWKHWKUHHFRXQWVDJDLQVW
,,,&21&/86,21                                                         KLP2Q$SULO)LHOGVILOHGDQRWLFHRIDSSHDOWRWKH
                                                                        (LJKWK'LVWULFW&RXUWRI$SSHDOV2QsXO\)LHOGV
   $FFRUGLQJO\ WKH &RXUW DGRSWV WKH UHSRUW DQG                   PRYHG WR GLVPLVV KLV GLUHFW DSSHDO LQ RUGHU WR SXUVXH
UHFRPPHQGDWLRQ RI 0DJLVWUDWH sXGJH 'DYLG 6 3HUHOPDQ             UHPHGLHVLQ)HGHUDO&RXUW
)LHOGVjV3HWLWLRQIRU+DEHDV&RUSXVLV*5$17(')LHOGV
PXVWEHSURYLGHGWKHRSSRUWXQLW\WRGHIHQGWKHDSSHDORIWKH            ,,/$:	$1$/<6,6
WULDOFRXUWjVVXSSUHVVLRQUXOLQJLQWKHVWDWHFRXUWRIDSSHDOV
,I)LHOGVLVQRWSURYLGHGVXFKRSSRUWXQLW\ZLWKLQQLQHW\             )LHOGVDVVHUWVWKDWKHZDVGHQLHGDQ\DVVLVWDQFHRIFRXQVHO
GD\VRIWKLV2UGHUKLVFRQYLFWLRQPXVWEHYDFDWHG                     RQ WKH VWDWHjV LQWHUORFXWRU\ DSSHDO RI WKH WULDO FRXUWjV
                                                                        VXSSUHVVLRQRUGHU5HVSRQGHQWFRQWHQGVWKH&RXUWVKRXOGQRW
                                                                        JUDQW )LHOGVjV SHWLWLRQ EHFDXVH  SHWLWLRQHU KDV QRW
                                                                        H[KDXVWHG KLV VWDWH UHPHGLHV DV WR WKH LVVXH UDLVHG LQ WKDW
                                                                        SHWLWLRQWKHLVVXHODFNVPHULWHLWKHUEHFDXVH)LHOGVFDQQRW
                                                                        VKRZWKDWKHODFNHGHIIHFWLYHDVVLVWDQFHRIFRXQVHORQDSSHDO
        )LHOGVY%DJOH\                                   1R        1R                                    )LHOGVY%DJOH\        

RUXQGHUWKHGRFWULQHRILQYLWHGHUURU7KH&RXUWZLOODGGUHVV                WHVWLPRQ\FUHGLEOHZDVQRWFRQWDLQHGLQWKHWUDQVFULSWVRIWKH
HDFKRIUHVSRQGHQWjVDUJXPHQWVLQWXUQ                                        SURFHHGLQJV DOWKRXJK LW VKRXOG KDYH EHHQ LQ WKHPl  7KH
                                                                               DSSHOODWHFRXUWWKHUHIRUHZDVXQDZDUHRIWKLVEDVLVIRUWKH
    $([KDXVWLRQ                                                             WULDO FRXUWjV GHFLVLRQ  ,I WKH WULDO FRXUWjV FUHGLELOLW\
                                                                               GHWHUPLQDWLRQ KDG EHHQ LQFOXGHG LQ WKH WUDQVFULSW WKH
  )LHOGV DVVHUWV WKDW KH KDV H[KDXVWHG WKH RQO\ FODLP                  DSSHOODWH FRXUW ZRXOG KDYH EHHQ UHTXLUHG WR JLYH WKDW
SUHVHQWHG WR WKLV &RXUW  +H DVNHG WKH DSSHOODWH FRXUW WR            GHWHUPLQDWLRQJUHDWGHIHUHQFH 7KHDSSHOODWHFRXUWjVDQDO\VLV
UHFRQVLGHULWVGHFLVLRQDQGWRUHRSHQWKHFDVH7KHDSSHOODWH                 RI WKH UHDVRQDEOHQHVV RI WKH VHDUFK DQG VHL]XUH WKHUHIRUH
FRXUWUHIXVHG+HKDVDOVR SUHVHQWHGWKHLVVXHWZLFHWRWKH                   ZRXOGKDYHFKDQJHGVXEVWDQWLDOO\7KLVFOHDUO\VDWLVILHVWKH
2KLR 6XSUHPH &RXUW ZKR ERWK WLPHV UHIXVHG WR KHDU LW             SUHMXGLFHSURQJRI6WULFNODQG7KH&RXUWWKXVILQGVWKDW
'HVSLWHWKHVHHIIRUWV5HVSRQGHQWDVVHUWVWKDWSHWLWLRQHUIDLOHG               )LHOGVODFNHGWKHHIIHFWLYHDVVLVWDQFHRIFRXQVHORQWKHDSSHDO
WR H[KDXVW KLV FODLPV EHFDXVH KH GLG QRW SXUVXH D GLUHFW             RIWKHVXSSUHVVLRQKHDULQJ
DSSHDOIURPKLVVHQWHQFHDQGFRQYLFWLRQDIWHUSOHDGLQJQROR
FRQWHQGHUH5HVSRQGHQWDVVHUWVIXUWKHUWKDWEHFDXVHWKHWLPH                      ,QYLWHG(UURU
KDVUXQRQ)LHOGVjVDELOLW\WRGLUHFWO\DSSHDOKLVVHQWHQFHDQG
FRQYLFWLRQ)LHOGVLVEDUUHGIURPDWWHPSWLQJWRH[KDXVWWKRVH                    6HFRQGUHVSRQGHQWDUJXHVWKDW)LHOGVFDQQRWUDLVHDQHUURU
FODLPVQRZEHFDXVHWKH\ZRXOGEHSURFHGXUDOO\GHIDXOWHG                      WKDW KH SURYRNHG XQGHU WKH GRFWULQH RI LQYLWHG HUURU  7KH
                                                                               GRFWULQH RI mLQYLWHG HUURUl LV D EUDQFK RI WKH GRFWULQH RI
  7KH&RXUWDJUHHVZLWKWKH0DJLVWUDWHsXGJHWKDW)LHOGVKDV                   ZDLYHU LQ ZKLFK FRXUWV SUHYHQW D SDUW\ IURP LQGXFLQJ DQ
H[KDXVWHG KLV FODLPV  )LHOGV KDV WDNHQ KLV FODLP WR WKH             HUURQHRXV UXOLQJ DQG ODWHU VHHNLQJ WR SURILW IURP WKH OHJDO
KLJKHVWFRXUWLQ2KLRDQGWKDWFRXUWKDGWKHDELOLW\WRUHYLHZ                FRQVHTXHQFHV RI KDYLQJ WKH UXOLQJ VHW DVLGH +DUYLV Y
WKHFODLPRQLWVPHULWV7KLVLVDOOWKDWLVQHFHVVDU\WRH[KDXVW             5RDGZD\([SUHVV,QF)GWK&LU:KHQ
KLVFODLP6HH7XJJOHY6HDERUG)GWK&LU                   DSHWLWLRQHULQYLWHVDQHUURULQWKHWULDOFRXUWKHLVSUHFOXGHG
m2QFHDQLVVXHRIDVVHUWHGFRQVWLWXWLRQDOYLRODWLRQKDV
EHHQSUHVHQWHGWRWKH6WDWHjVKLJKHVWFRXUWWKHGRFWULQHRI
H[KDXVWLRQ RI UHPHGLHV GRHV QRW UHTXLUH IXWXUH UHSHWLWLYH                   
                                                                                     :KHQ FRQVLGHULQJ D PRWLRQ WR VXSSUHVV WKH WULDO FRXUW LV WKH SULPDU\
SUHVHQWDWLRQVWRVXFKFRXUWE\DGGLWLRQDODWWHPSWVWKURXJKD                   MXGJH RI WKH FUHGLELOLW\ RI ZLWQHVVHV DQG WKH ZHLJKW RI WKH HYLGHQFH 6WDWH
YDULHW\ RI VXFFHVVLYH PRWLRQVl&ROHPDQ Y 0D[ZHOO                  Y )DQQLQJ  2KLR 6WG    ,I WKH WULDO FRXUWjV ILQGLQJV DUH

)GWK&LUm,WLVFOHDUWRWKLVFRXUWWKDWRQFH              VXSSRUWHG E\ FRPSHWHQW DQG FUHGLEOH HYLGHQFH WKHQ WKH DSSHOODWH FRXUW
DQLVVXHRIDVVHUWHGIHGHUDOFRQVWLWXWLRQDOYLRODWLRQKDVEHHQ                 PXVW DFFHSW WKHP 6HH 6WDWH Y :LOOLDPV  2KLR $SS G   

SUHVHQWHGWRWKHKLJKHVWVWDWHFRXUWLQWKHVWDWHFRQFHUQHGWKDW              $ UHYLHZLQJ FRXUW FDQ HYDOXDWH HYLGHQFH LQ WHUPV RI VXIILFLHQF\ EXW LW
                                                                               FDQQRW VHFRQG JXHVV WKH WULDO FRXUWjV GHWHUPLQDWLRQ RI FUHGLELOLW\ ,G
WKHGRFWULQHRIH[KDXVWLRQRIUHPHGLHVGRHVQRWUHTXLUHIXWLOH                 2QFH WKH WULDO FRXUW GHWHUPLQHV WKH IDFWV KRZHYHU WKH DSSHOODWH FRXUW
                                                                               GHWHUPLQHV mZLWKRXW GHIHUHQFH ZKHWKHU WKH FRXUW KDV DSSOLHG WKH
                                                                               DSSURSULDWH OHJDO VWDQGDUGl 6HH 6WDWH Y $QGHUVRQ  2KLR $SSG 
                                                                                 6HH DOVR 6WDWH Y .OXPS  :/  2KLR $SS sXQH
                                                                               
      m>,@I WKH SHWLWLRQHU IDLOHG WR H[KDXVW VWDWH UHPHGLHV DQG WKH FRXUW WR
ZKLFK WKH SHWLWLRQHU ZRXOG EH UHTXLUHG WR SUHVHQW KLV FODLPV LQ RUGHU WR
                                                                                   
PHHW WKH H[KDXVWLRQ UHTXLUHPHQW ZRXOG QRZ ILQG WKH FODLPV SURFHGXUDOO\               7KH 2KLR &RXUW RI $SSHDOV ZDV DZDUH RI )LHOGVjV ODFN RI FRXQVHO
EDUUHG> WKHQ@ WKHUH LV D SURFHGXUDO GHIDXOW IRU SXUSRVHV RI IHGHUDO KDEHDV    DW WKH DSSHOODWH VWDJH LW DOORZHG 7LWWOH WR ZLWKGUDZ KLV QDPH IURP WKH
UHJDUGOHVV RI WKH GHFLVLRQ RI WKH ODVW VWDWH FRXUW WR ZKLFK WKH SHWLWLRQHU     DSSHDO ZLWKRXW JLYLQJ )LHOGV WKH FKDQFH WR SUHVHQW DUJXPHQW WR WKH
DFWXDOO\ SUHVHQWHG KLV FODLPVl 6HH &ROHPDQ Y 7KRPSVRQ  86           DSSHOODWH FRXUW WKURXJK VXEVWLWXWH FRXQVHO GHVSLWH PXOWLSOH UHTXHVWV WR GR
                                                                        VR
    )LHOGVY%DJOH\                                 1R        1R                                     )LHOGVY%DJOH\          

6HHDOVR6XPPHUVY7KRPSVRQ)6XSS0'                  UHSHWLWLYH SUHVHQWDWLRQ WR VXFK FRXUW E\ UHSHDWHG DWWHPSWV
7HQQILQGLQJLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOZKHQ               WKURXJKDYDULHW\RIPRWLRQVlm>2@QFH>D@IHGHUDOFODLPKDV
FRXQVHOIDLOHGWRQRWLI\KLVFOLHQWWKDWKHZDVZLWKGUDZLQJ               EHHQ IDLUO\ SUHVHQWHG WR WKH VWDWH FRXUWV WKH H[KDXVWLRQ
IURPIXUWKHUUHSUHVHQWDWLRQ7KH&RXUWWKHUHIRUHILQGVWKDW          UHTXLUHPHQWLVVDWLVILHGl&DVWLOOHY3HRSOHV86
)LHOGVSDVVHVWKHILUVWSURQJRI6WULFNODQG                                TXRWLQJ 3LFDUG Y &RQQRU  86  
                                                                          $QGHUVRQY+DUOHVV86.RRQW]
  7KH&RXUWDOVRILQGVWKDW)LHOGVZDVSUHMXGLFHGE\WKHODFN             Y*ORVVD)GWK&LU
RIDVVLVWDQFH,QWKLVUHVSHFWWKH&RXUWPXVWDVFHUWDLQZKHWKHU
FRXQVHOjVFRQGXFWmVRXQGHUPLQHGWKHSURSHUIXQFWLRQLQJRI                   %HFDXVH)LHOGVKDVSUHVHQWHGWKLVFRQVWLWXWLRQDOLVVXHWZLFH
WKHDGYHUVDULDOSURFHVVWKDWWKHWULDOFDQQRWEHUHOLHGRQDV             WR ERWK WKH 2KLR $SSHOODWH &RXUW DQG WKH 2KLR 6XSUHPH
KDYLQJ SURGXFHG D MXVW UHVXOWl  6NDJJV Y 3DUNHU             &RXUWDQGWKHUHLVQRUHDVRQWREHOLHYHWKRVHFRXUWVZRXOGRU
)6XSSGTXRWLQJ6WULFNODQG86DW                 FRXOGFKDQJHWKHLUYLHZVRIWKHLVVXHWKHLVVXHLVH[KDXVWHG
)LHOGVZDVQRWDEOHWRSUHVHQWDQ\DUJXPHQWWRDGYRFDWH             DQG QRW VXEMHFW WR SURFHGXUDO GHIDXOW &I &ROHPDQ Y
IRUDIILUPDWLRQRIWKHVXSSUHVVLRQRUGHUZKLFKE\LWVHOILV            7KRPSVRQ86m,QDOOFDVHVLQZKLFK
HQRXJK WR VKRZ SUHMXGLFH  6HH 86 ([ 5HO 7KRPDV Y           DVWDWHSULVRQHUKDVGHIDXOWHGKLVIHGHUDOFODLPVLQVWDWHFRXUW
2j/HDU\)GWK&LUKROGLQJWKDWODFNRI              SXUVXDQWWRDQLQGHSHQGHQWDQGDGHTXDWHVWDWHSURFHGXUDOUXOH
FRXQVHO GXULQJ VWDWHjV DSSHDO RI WULDO FRXUWjV GHFLVLRQ WR        IHGHUDO KDEHDV UHYLHZ RI WKH FODLPV LV EDUUHG XQOHVV WKH
VXSSUHVVHYLGHQFHLVLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOSHUVH           SULVRQHU FDQ GHPRQVWUDWH FDXVH IRU WKH GHIDXOW DQG DFWXDO
6HHDOVR8QLWHG6WDWHVY&URQLF86m7KH               SUHMXGLFHDVDUHVXOWRIWKHDOOHJHGYLRODWLRQRIIHGHUDOODZRU
SUHVXPSWLRQWKDWFRXQVHOjVDVVLVWDQFHLVHVVHQWLDOUHTXLUHVXV
WR FRQFOXGH WKDW D WULDO LV XQIDLU LI WKH DFFXVHG LV GHQLHG
FRXQVHODWDFULWLFDOVWDJHRIKLVWULDOl*UHHQY$UQ)G
WK&LUYDFDWHGRQRWKHUJURXQGV
6&W   UHLQVWDWHG  )G  WK &LU
m:KHUHWKH6L[WK$PHQGPHQWFODLPLVWKHGHQLDOUDWKHUWKDQ                  
WKHLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOWKHFULPLQDOGHIHQGDQW                 ,Q 2KLR WKH ODZRIWKHFDVH GRFWULQH mSURYLGHV WKDW WKH GHFLVLRQ RI

QHHGRQO\VKRZWKDWFRXQVHOZDVDEVHQWGXULQJDFULWLFDOVWDJH            D UHYLHZLQJ FRXUW LQ D FDVH UHPDLQV WKH ODZ RI WKDW FDVH RQ WKH OHJDO
                                                                          TXHVWLRQV LQYROYHG IRU DOO VXEVHTXHQW SURFHHGLQJV LQ WKH FDVH DW ERWK WKH
RI WKH SURFHHGLQJV LQ RUGHU WR HVWDEOLVK WKH FRQVWLWXWLRQDO       WULDO DQG UHYLHZLQJ OHYHOVl   1RODQ Y 1RODQ  2KLR 6W G   
YLRODWLRQ $EVHQFH IURP WKH SURFHHGLQJV LV GHILFLHQW                 $OWKRXJK WKHUH LV VRPH SRVVLELOLW\ WKDW WKH &RXUW RI $SSHDOV DQG
SHUIRUPDQFHDVDPDWWHURIODZDQGSUHMXGLFHLVSUHVXPHGl              WKH 2KLR 6XSUHPH &RXUW FRXOG KDYH DGGUHVVHG )LHOGVjV FRQVWLWXWLRQDO
                                                                          LVVXH RQ D GLUHFW DSSHDO IURP KLV FRQYLFWLRQ DQG VHQWHQFH QRWZLWKVWDQGLQJ

  0RUHVSHFLILFDOO\KRZHYHU)LHOGVZDVXQDEOHWRSRLQWRXW              WKLV ODZ RI WKH FDVH GRFWULQH VHH 6WDWH Y 3DWWHUVRQ  :/ 
                                                                          2KLR $SS  WKDW SRVVLELOLW\ LV VOLP :KLOH LW LV WUXH WKDW WKH ODZ RI
WKDW WKH DSSHOODWH FRXUW GLG QRW KDYH WKH IXOO UHFRUG RI WKH   WKH FDVH GRFWULQH LV RQO\ mFRQVLGHUHG WR EH D UXOH RI SUDFWLFH UDWKHU WKDQ
VXSSUHVVLRQSURFHHGLQJVEHIRUHLW7KHWULDOFRXUWjVVWDWHPHQW            D ELQGLQJ UXOH RI VXEVWDQWLYH ODZ DQG ZLOO QRW EH DSSOLHG VR DV WR DFKLHYH
WKDWLWZDVVXSSUHVVLQJWKHGUXJVEHFDXVHLWGLGQRWILQGWKH             XQMXVW UHVXOWVl 1RODQ  2KLR 6WG DW  H[FHSWLRQV WR WKH ODZ RI WKH
WHVWLPRQ\ RI WKH SROLFH RIILFHUV WR EH FUHGLEOH ZDV QRW          FDVH GRFWULQH DUH RQO\ DSSOLHG XQGHU WKH UDUHVW RI FLUFXPVWDQFHV DQG PD\
LQFOXGHG LQ WKH WUDQVFULSW  6HH $II RI sXGJH 5LFKDUG           QRW EH LQYRNHG DV D ZD\ LQ ZKLFK DQ XQVXFFHVVIXO OLWLJDQW FDQ KDYH KLV
                                                                          FDVH UHGHWHUPLQHG 6HH *HQ $FF ,QV &R Y ,QV &R RI 1 $P  2KLR
0F0RQDJOHm,VWDWHGLQRSHQFRXUWWKDW,ZDVJUDQWLQJWKH                $SSG   :HDYHU Y 0RWRULVWV 0XW ,QV &R  2KLR $SSG
PRWLRQEHFDXVH,GLGQRWILQGWKHSROLFHRIILFHUVWHVWLPRQ\                 7KXV WKH SRVVLELOLW\ WKDW WKHVH &RXUWV PLJKW DGGUHVV WKH
FUHGLEOH  7KH VWDWHPHQW WKDW , GLG QRW ILQG WKH RIILFHUVj      LVVXH XQGHU VRPH UDUH H[FHSWLRQ WR WKH ODZ RI WKH FDVH GRFWULQH GRHV QRW
                                                                          PHDQ WKDW )LHOGV KDV QRW VXIILFLHQWO\ H[KDXVWHG WKH LVVXH
       )LHOGVY%DJOH\                                    1R        1R                               )LHOGVY%DJOH\       

GHPRQVWUDWHWKDWIDLOXUHWRFRQVLGHUWKHFODLPVZLOOUHVXOWLQ                 FRXQVHOjVFRQGXFWIHOOEHORZEDVLFVWDQGDUGVRIDVVLVWDQFH
DIXQGDPHQWDOPLVFDUULDJHRIMXVWLFHl                                       DQGEXWIRUFRXQVHOjVSURIHVVLRQDOIDLOXUHVWKHUHVXOWRI
                                                                               WKHWULDOZRXOGOLNHO\KDYHEHHQGLIIHUHQWoLHWKHGHIHQGDQW
 %0HULWV                                                                    ZDVSUHMXGLFHGWKHUHE\,Q6WULFNODQGWKHUHIRUHWKH6XSUHPH
                                                                               &RXUW KHOG WKDW D SHWLWLRQHU PXVW GHPRQVWUDWH FDXVH DQG
     $VVLVWDQFHRI&RXQVHO                                                  SUHMXGLFHWRSUHYDLORQDQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO
                                                                               FODLP7RGHPRQVWUDWHFDXVHWKHSHWLWLRQHUPXVWVKRZmWKDW
   7KH UHVSRQGHQW DVVHUWV WZR DUJXPHQWV RQ WKH PHULWV RI               FRXQVHOjVUHSUHVHQWDWLRQIHOOEHORZDQREMHFWLYHVWDQGDUGRI
)LHOGVjVKDEHDVSHWLWLRQ)LUVWUHVSRQGHQWDVVHUWVWKDW)LHOGV               UHDVRQDEOHQHVVl  6WULFNODQG  86 DW   m7KH
FDQQRWSUHYDLORQDQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLP                   REMHFWLYHVWDQGDUGRIUHDVRQDEOHQHVVLVµKLJKO\GHIHUHQWLDOj
XQGHU6WULFNODQGY:DVKLQJWRQ867KLV                     DQG LQFOXGHV D µVWURQJ SUHVXPSWLRQ WKDW FRXQVHOjV FRQGXFW
&RXUWDJUHHVZLWKWKH0DJLVWUDWHsXGJHWKDWWKHDEVHQFHRI                     IDOOV ZLWKLQ WKH ZLGH UDQJH RI UHDVRQDEOH SURIHVVLRQDO
FRXQVHO RQ )LHOGVjV DSSHDO RI WKH WULDO FRXUWjV VXSSUHVVLRQ            DVVLVWDQFHjl6NDJJVY3DUNHU)6XSSG
ILQGLQJVDWLVILHV6WULFNODQG                                                  TXRWLQJ 6WULFNODQG  86 DW     8QGHU WKLV
                                                                               VWDQGDUGm>W@KHDVVLVWDQFHUHTXLUHGRIFRXQVHOLVQRWWKDWRI
   $GHIHQGDQWLVHQWLWOHGWRWKHHIIHFWLYHDVVLVWDQFHRIFRXQVHO              WKH PRVW DVWXWH FRXQVHO EXW UDWKHU WKDW RI µUHDVRQDEO\
LQKLVILUVWDSSHDODVDPDWWHURIULJKW6HH6PLWKY5REELQV               HIIHFWLYHDVVLVWDQFHjl,G
/(GG(YLWWVY/XFH\86
   $V WKH 6XSUHPH &RXUW KDV VWDWHG mD FULPLQDO                )LHOGVjVFRXQVHOGLGQRWSURYLGHDQ\DVVLVWDQFHDWDOOOHW
DSSHOODQWPXVWIDFHDQDGYHUVDU\SURFHHGLQJWKDWoOLNHDWULDO                DORQHHIIHFWLYHDVVLVWDQFH5HVSRQGHQWLWVHOISRLQWVRXWWKDW
oLVJRYHUQHGE\LQWULFDWHUXOHVWKDWWRDOD\SHUVRQZRXOGEH                  )LHOGVjVFRXQVHOEUHDFKHGKLVGXW\WRLQIRUPKLVFOLHQWDQGWKH
KRSHOHVVO\IRUELGGLQJ$QXQUHSUHVHQWHGDSSHOODQWoOLNHDQ                   FRXUWRIWKHIDFWWKDWKHQRORQJHUUHSUHVHQWHG)LHOGVDQGWR
XQUHSUHVHQWHGGHIHQGDQWDWWULDOoLVXQDEOHWRSURWHFWWKHYLWDO              LQIRUPKLVFOLHQWWKDWDQDSSHDOKDGEHHQWDNHQ6HH%R\GY
LQWHUHVWVDWVWDNHl,G7KHVWDWHjVLQWHUORFXWRU\DSSHDORID               &RZDQ  )G  WK &LU  m'HQLDO RI
WULDOFRXUWjVRUGHUVXSSUHVVLQJHYLGHQFHLVDQDSSHDOUHTXLULQJ                FRQVWLWXWLRQDO ULJKW WR DSSHDO >PD\ UHVXOW IURP@ IDLOXUH RI
WKHHIIHFWLYHDVVLVWDQFHRIFRXQVHOMXVWDVDGLUHFWDSSHDOIURP               UHWDLQHGFRXQVHOWRSHUIHFWDQDSSHDOZKHQWKHIDFWVLQWKH
DFRQYLFWLRQZRXOG6HH86([5HO7KRPDVY2j/HDU\                      FDVHLPSRVHDGXW\XSRQKLPWRGRVRl)LHOGVjVFRXQVHO
)GWK&LU                                                PRUHRYHUYLRODWHGVHYHUDO(WKLFDO&RQVLGHUDWLRQVXQGHUWKH
                                                                               2KLR&RGHRI3URIHVVLRQDO5HVSRQVLELOLW\LQOHDYLQJKLVFOLHQW
  8QGHU6WULFNODQGFRXQVHOjVFRQGXFWZLOORQO\EHGHHPHG                      ZLWKQRUHSUHVHQWDWLRQRQDSSHDORIWKHVXSSUHVVLRQLVVXH6HH
FRQVWLWXWLRQDOO\ GHILFLHQW LI ERWK RI WKH IROORZLQJ DUH WUXH          (&  m7ULDO FRXQVHO IRU D FRQYLFWHG GHIHQGDQW VKRXOG
                                                                               FRQWLQXHWRUHSUHVHQWKLVFOLHQWE\DGYLVLQJZKHWKHUWRWDNHDQ
                                                                              DSSHDO DQG E\ UHSUHVHQWLQJ KLP WKURXJK WKH DSSHDO XQOHVV
      ,I WKH LVVXH KDG EHHQ SUHVHQWHG WR WKH VWDWH 6XSUHPH &RXUW RQO\          QHZFRXQVHOLVVXEVWLWXWHGRUZLWKGUDZDOLVSHUPLWWHGE\WKH
RQFH DQG WKDW &RXUW KDG UHIXVHG WR FRQVLGHU LW EDVHG RQ D SURFHGXUDO UXOH
VXFK DV WKH LQDSSOLFDELOLW\ RI 5XOH % WR LQWHULP DSSHDOV E\ WKH VWDWH
                                                                               DSSURSULDWHFRXUWl(&mDODZ\HUVKRXOGSURWHFWWKH
WKLV &RXUWjV YLHZ RI WKH H[KDXVWLRQ TXHVWLRQ PLJKW ZHOO EH GLIIHUHQW 7KDW     ZHOIDUHRIKLVFOLHQWE\JLYLQJGXHQRWLFHRIKLVZLWKGUDZDO
LV QRW WKH FDVH KHUH KRZHYHU                                                 VXJJHVWLQJ HPSOR\PHQW RI RWKHU FRXQVHO GHOLYHULQJ WR WKH
                                                                               FOLHQWDOOSDSHUVDQGSURSHUW\WRZKLFKWKHFOLHQWLVHQWLWOHG
                                                                              FRRSHUDWLQJ ZLWK FRXQVHO VXEVHTXHQWO\ HPSOR\HG DQG
     ,QGHHG UHVSRQGHQW GRHV QRW DVVHUW WKDW WKH VWDWHjV DSSHDO RI WKH
VXSSUHVVLRQ GHFLVLRQ ZDV QRW D FULWLFDO VWDJH RI WKH SURFHHGLQJ GXULQJ         RWKHUZLVHHQGHDYRULQJWRPLQLPL]HWKHSRVVLELOLW\RIKDUPl
ZKLFK )LHOGV ZRXOG KDYH QR ULJKW WR FRXQVHO