Court Opinion

ID: 2970168
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:06:19.343056+00
Date Added: 2024-06-11T11:43:28.496053
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
    *RWWIULHGY0HGLFDO3ODQQLQJHWDO         1R                 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

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

LQWHUHVW LQ HQIRUFLQJ LW ZRXOG LPSXJQ WKH YHU\ SULQFLSOHV                  )LOH 1DPH DS

VWDWHGDERYH
                        9,&RQFOXVLRQ                              81,7('67$7(6&28572)$33($/6
  7KH GHFLVLRQ RI WKH GLVWULFW FRXUW LV 9$&$7(' DQG WKH                  )257+(6,;7+&,5&8,7
FDVHLV5(0$1'('WRWKHGLVWULFWFRXUWZLWKWKHGLUHFWLRQWR                        BBBBBBBBBBBBBBBBB
',60,66LWDV02276HH8QLWHG6WDWHVY0XQVLQJZHDU
,QF86
                                                                     +2//< *277)5,('             ;
                                                                             3ODLQWLII$SSHOODQW  
                                                                                                   
                                                                                                          1R
                                                                                Y                 
                                                                                                    !
                                                                                                   
                                                                     0(',&$/ 3/$11,1*              
                                                                     6(59,&(6 ,1& 7+( 2)),&(6   
                                                                     2) '5 0$12+$5 /$/ 0' 
                                                                     '5 /$/ 6800,7 &2817<        
                                                                     6+(5,)) '5(: $/(;$1'(5       
                                                                                                   
                                                                     s8'*( s$1( %21'              
                                                                            'HIHQGDQWV$SSHOOHHV 
                                                                                                   
                                                                                                  1

                                                                          $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
                                                                            IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW$NURQ
                                                                       1Rn'DYLG''RZGsU'LVWULFWsXGJH
                                                                                  $UJXHG6HSWHPEHU
                                                                              'HFLGHGDQG)LOHG)HEUXDU\

                                                                                                
        *RWWIULHGY0HGLFDO3ODQQLQJHWDO              1R   1R         *RWWIULHGY0HGLFDO3ODQQLQJHWDO        

    %HIRUH'$8*+75(<DQG*,/0$1&LUFXLWsXGJHV                           $GGLWLRQDOO\LWLVFOHDUWKDWWKLVFDVHGRHVQRWIDOOLQWRWKH
               &2+16HQLRU'LVWULFWsXGJH
                              mFDSDEOH RI UHSHWLWLRQ \HW HYDGLQJ UHYLHZl H[FHSWLRQ WR
                                                                          PRRWQHVVDVWKHYHU\VWDWHFRXUWLQMXQFWLRQEHLQJFKDOOHQJHG
                       BBBBBBBBBBBBBBBBB                                  LVOHJDOO\GHIXQFWDQGWKHUHLVQRHYLGHQFHLQWKHUHFRUGWKDW
                                                                          LWFDQRUZLOOHYHUEHUHYLYHGDQG*RWWIULHGKDVQRWDUJXHG
                             &2816(/                                      RWKHUZLVH
$5*8('3DWULFNs3HURWWL':25.(1	%(5167(,1                             $OWKRXJKWKHPRRWQHVVLVVXHZDVUDLVHGEHORZWKHGLVWULFW
&2 /3$ 3DLQHVYLOOH 2KLR IRU $SSHOODQW  .DUHQ .HOO\          FRXUW UHIUDLQHG IURP GHFLGLQJ WKH LVVXH E\ VWDWLQJ WKDW WKH
*UDVVR 7+203621 +,1( //3 &OHYHODQG 2KLR IRU                     SULRU SDQHO RSLQLRQ FRQWHPSODWHG WKDW *RWWIULHG ZRXOG EH
$SSHOOHHV21%5,()3DWULFNs3HURWWL':25.(1	                     HQWLWOHGWRDUXOLQJRQWKHPHULWVRIKHUFODLP7KHGLVWULFW
%(5167(,13DLQHVYLOOH2KLRIRU$SSHOODQW.DUHQ.HOO\                 FRXUWjVUHOLDQFHRQWKHSULRUSDQHOjVVWDWHPHQWZDVHUURQHRXV
*UDVVR 5REHUW 0 *LSSLQ 7+203621 +,1( //3                        LWZDVPDGHDWDWLPHZKHQWKHVWDWHFRXUWLQXQFWLRQZDVVWLOO
&OHYHODQG2KLR$OO\VRQ0LOOHU/HRQDUG:LOOLDP73LYLN                LQ SODFH  0RUHRYHU WKH GLVWULFW FRXUWjV EHOLHI WKDW HYHQ
6800,7 &2817< 3526(&8725j6 2)),&( $NURQ                             WKRXJK WKH VWDWH FRXUW LQMXQFWLRQ ZDV GLVVROYHG mWKH OHJDO
2KLRsRKQ34XLQQ$NURQ2KLRIRU$SSHOOHHV                        TXHVWLRQV UHPDLQl LV HTXDOO\ XQVRXQG  :KHQHYHU D FDVH
                                                                          EHFRPHVPRRWWKHXQGHUO\LQJOHJDOTXHVWLRQVDOZD\VUHPDLQ
                       BBBBBBBBBBBBBBBBB                                  XQUHVROYHG  7KDW IDFW GRHV QRW SURYLGH D MXVWLILFDWLRQ IRU
                                                                          UHDFKLQJWKHPHULWVRIDGLVSXWHEXWUDWKHUGHPRQVWUDWHVWKH
                           23,1,21                                        LQHYLWDEOH FRQVHTXHQFHV RI DSSOLFDWLRQ RI WKH PRRWQHVV
                       BBBBBBBBBBBBBBBBB                                  GRFWULQH
&2+16HQLRU'LVWULFWsXGJH                                                                              %
                           ,,QWURGXFWLRQ                                  ,QDGGLWLRQWRILQGLQJ*RWWIULHGjVFODLPVPRRWZHDUHDOVR
   3ODLQWLII$SSHOODQW+ROO\*RWWIULHG*RWWIULHGDSSHDOVIURP           PLQGIXORIWKHVDPHSULQFLSOHVWKDWLQSDUWFDXVHGWKHSULRU
WKH GLVWULFW FRXUWjV GHFLVLRQ ILQGLQJ WKDW D VWDWH FRXUW          SDQHO WR GHFOLQH FRQVLGHUDWLRQ RI *RWWIULHGjV FRQVWLWXWLRQDO
LQMXQFWLRQ UHVWULFWLQJ DERUWLRQ FOLQLF SLFNHWLQJ REWDLQHG E\        FODLP$VWKHSULRUSDQHOQRWHGmZHEHOLHYHHTXLW\FRPLW\
GHIHQGDQWVDSSHOOHHV 0HGLFDO 3ODQQLQJ 6HUYLFHV ,QF WKH            DQGRXUIHGHUDOLVWMXGLFLDOV\VWHPUHTXLUHWKHIHGHUDOFRXUWWR
2IILFHVRI'U0DQRKDU/DO0'DQG'U/DOLQGLYLGXDOO\               JLYHWKHVWDWHMXGJHWKHILUVWFKDQFHWREULQJWKHLQMXQFWLRQ
WKH0HGLFDO3ODQQLQJGHIHQGDQWVRQ$XJXVWDJDLQVW               LQWRFRPSOLDQFHZLWKFRQVWLWXWLRQDOODZl*RWWIULHG)G
7UL&RXQW\&KULVWLDQ&RPPXQLW\RI*UHDWHU2KLRDQGRWKHUV                DW   +HUH WKH 2KLR 6XSUHPH &RXUW GLG QRW UHDFK
QRQHRIZKRPREMHFWHGWRHQWU\RIWKHLQMXQFWLRQGRHVQRW                *RWWIULHGjVFRQVWLWXWLRQDOFODLPEHFDXVH*RWWIULHGHOHFWHGWR
YLRODWH*RWWIULHGjV)LUVW$PHQGPHQWULJKWV7KHLQMXQFWLRQDW            UHVHUYHWKHPIRUWKHIHGHUDOFRXUW+RZHYHUZKHQSUHVHQWHG
LVVXH ZDV YDFDWHG RQ sDQXDU\   RQ WKH PRWLRQ RI          ZLWK WKH 0HGLFDO 3ODQQLQJ GHIHQGDQWVjV UHTXHVW WKH VWDWH
0HGLFDO3ODQQLQJGXULQJWKHSHQGHQF\RI*RWWIULHGjVFDVHLQ               FRXUW MXGJH YDFDWHG WKH LQMXQFWLRQ WKHUHE\ UHPRYLQJ DQ\
                                                                          DOOHJHGFRQVWLWXWLRQDOLQILUPLWLHV)RUWKHIHGHUDOFRXUWVWR
                                                                          UXOHRQWKHFRQVWLWXWLRQDOLW\RIDGHIXQFWVWDWHFRXUWLQMXQFWLRQ
                                                                          LQDFLUFXPVWDQFHZKHUHWKHVWDWHRI2KLRQRORQJHUKDVDQ\
     
     7KH +RQRUDEOH $YHUQ &RKQ 6HQLRU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ
    *RWWIULHGY0HGLFDO3ODQQLQJHWDO          1R       1R          *RWWIULHGY0HGLFDO3ODQQLQJHWDO           

  3HUPDQHQW,QMXQFWLRQDQGWRDFWLYHO\HQIRUFHFRPSOLDQFH              WKH GLVWULFW FRXUW  *RWWIULHG DUJXHV WKDW WKH LQMXQFWLRQ WR
  ZLWKLWVWHUPVDQGWKH6KHULIILVGLUHFWHGWREULQJEHIRUH          ZKLFK *RWWIULHG ZDV QRW D SDUW\ YLRODWHG WKH )LUVW
  WKH &RXUW DQ\ SHUVRQ ZKR KDYLQJ QRWLFH RI WKLV              $PHQGPHQW'HIHQGDQWV$SSHOOHHV6XPPLW&RXQW\6KHULII
  3HUPDQHQW ,QMXQFWLRQ UHIXVHV WR REH\ LW RU ZKR              'UHZ $OH[DQGHU DQG sXGJH sDQH %RQG         6XPPLW &RXQW\
  REVWUXFWVRULQWHUIHUHVZLWKWKH6KHULIILQWKHGLVFKDUJHRI         sXGJHIRUWKH&RXUWRI&RPPRQ3OHDVWKH6XPPLW&RXQW\
  KLVGXWLHV                                                          GHIHQGDQWV DUJXH WKDW WKH GLVVROXWLRQ RI WKH VWDWH FRXUW
                                                                       LQMXQFWLRQUHQGHUHG*RWWIULHGjVFODLPPRRW
  6KHULII $OH[DQGHUjV REOLJDWLRQV XQGHU WKH VWDWH FRXUW
LQMXQFWLRQFOHDUO\IORZIURPWKH6WDWH+HGLGQRWKDYHDQ\             $WWKHSDQHOjVUHTXHVWDOOSDUWLHVZHUHGLUHFWHGWREULHIWKH
GLVFUHWLRQDU\DXWKRULW\UHJDUGLQJWKHVWDWHFRXUWLQMXQFWLRQ          TXHVWLRQRIPRRWQHVV)RUWKHUHDVRQVZKLFKIROORZZHILQG
5DWKHUKHZDVERXQGWRHQIRUFHLWE\LWVWHUPVDQGWKHUHLVQR        WKH IDFW WKDW WKH VWDWH FRXUW LQMXQFWLRQ KDV EHHQ GLVVROYHG
HYLGHQFHWKDWLWZDVHYHUHQIRUFHGRWKHUZLVH$VVXFKDQ\            UHQGHUVWKLVFDVHPRRW$OWKRXJK*RWWIULHGDUJXHVWKDWWKH
DFWLRQ WDNHQ LQ FRQQHFWLRQ ZLWK WKH LQMXQFWLRQ ZRXOG EH        FDVHLVQRWPRRWEHFDXVHVKHLVHQWLWOHGWRGDPDJHVIURPWKH
DFWLRQ WDNHQ DV DQ DUP RI WKH 6WDWH IRU ZKLFK 6KHULII        WLPHRIILOLQJKHUFRPSODLQWXQWLOWKHWLPHWKHLQMXQFWLRQZDV
$OH[DQGHU ZRXOG EH HQWLWOHG WR (OHYHQWK $PHQGPHQW                GLVVROYHGKHUGDPDJHFODLPLVXQVXSSRUWDEOHDQGGRHVQRW
LPPXQLW\,QGHHGDWVRPHSRLQWGXULQJWKHOLIHRIWKHVWDWH          VDYH WKH FDVH IURP PRRWQHVV  $GGUHVVLQJ WKH PHULWV RI
FRXUW LQMXQFWLRQ WKH WKHQ 6HUJHDQW RI 6XPPLW &RXQW\           *RWWIULHGjV FRQVWLWXWLRQDO FODLPV XQGHU WKH FLUFXPVWDQFHV
6HUJHDQW 0F&XWFKHRQ JDYH QRWLFH RI WKH VWDWH FRXUW             ZRXOGHIIHFWLYHO\UHVXOWLQDQDGYLVRU\RSLQLRQ
LQMXQFWLRQWRLQGLYLGXDOVSLFNHWLQJDWWKH2%*<1&OLQLFDQG
WROGWKHPWKDWWKH\ZRXOGEHFKDUJHGZLWKFRQWHPSWLIWKH\                                       ,,%DFNJURXQG
UHIXVHGWRGLVSHUVHDVGLUHFWHGE\WKHLQMXQFWLRQ:KHQWKH
LQGLYLGXDOVUHIXVHGWKH\ZHUHFKDUJHGDQGIRXQGJXLOW\RI               7KLV FDVH KDV DQ H[WHQVLYH IDFWXDO EDFNJURXQG DQG
FRQWHPSW6HH0HGLFDO3ODQQLQJ6HUY,QF Y7UL&RXQW\             SURFHGXUDOKLVWRU\SDUWRIZKLFKLVGHVFULEHGDVIROORZVLQD
&KULVWLDQ&RPP2I*UHDWHU$NURQ:/2K                  SULRU SDQHO RSLQLRQ IROORZLQJ WKH LQLWLDO GHFLVLRQ E\ WKH
$SS  'LVW 0D\   XQSXEOLVKHG  6HUJHDQW            GLVWULFWFRXUW
0F&XWFKHRQjV DFWLRQV ZHUH FOHDUO\ WDNHQ DV DQ DUP RI WKH
6WDWH                                                                   ,Q'U0DQRKDU/DOKLV2%*<1RIILFHDQGKLV
                                                                         DERUWLRQFOLQLF0HGLFDO3ODQQLQJ6HUYLFHVVXHGIRUDQG
   0RUHRYHU*RWWIULHGjVFRPSODLQWVLPSO\VWDWHVWKDWDOORIWKH         REWDLQHG D SHUPDQHQW LQMXQFWLRQ DJDLQVW WKH SURWHVW
GHIHQGDQWVjV DFWLRQV ZHUH WDNHQ mXQGHU FRORU RI ODZ DQG          DFWLYLWLHVRIFHUWDLQDQWLDERUWLRQRUJDQL]DWLRQVDQGWZR
SUHVHQFH RI VWDWXWHV RUGLQDQFHV UHJXODWLRQV FXVWRPV DQG        'RHVsXGJHsDPHV3:LQWHURIWKH&RXUWRI&RPPRQ
XVHVRIWKH6WDWHRI2KLRWKH&LW\RI$NURQDQGWKH&RXQW\             3OHDV LQ 6XPPLW &RXQW\ 2KLR HQWHUHG D SHUPDQHQW
RI 6XPPLWl  *RWWIULHG GRHV QRW DOOHJH ZKDW HQWLW\ KDG D       LQMXQFWLRQRQ$XJXVW7KDWLQMXQFWLRQDSSOLHVWR
mSROLF\lRUmFXVWRPlRIYLRODWLQJKHUULJKWV,QGHHGLWLVWKH         WKH QDPHG DQG XQQDPHG GHIHQGDQWV WKRVH DFWLQJ LQ
VWDWHFRXUWLQMXQFWLRQWKDWDOOHJHGO\FDXVHGKHULQMXU\QRWDQ\
mSROLF\l RU mFXVWRPl RI WKH VWDWH FLW\ RU FRXQW\ DQG WKH
6KHULIIDFWHGDVDQDUPRIWKHVWDWHLQHQIRUFLQJLW2YHUDOO            
                                                                            6KHULII 'UHZ $OH[DQGHU LV WKH HOHFWHG VXFFHVVRU WR 6KHULII 5LFKDUG
ZHILQGWKDW*RWWIULHGjVSXUSRUWHGGDPDJHFODLPLVQRWYLDEOH          :DUUHQ

XQGHU WKH FLUFXPVWDQFHV RI WKLV FDVH DQG LV LQVXIILFLHQW WR
ZLWKVWDQGDSSOLFDWLRQRIWKHPRRWQHVVGRFWULQH                           
                                                                            sXGJH %RQG LV WKH VXFFHVVRU WR &RXUW RI &RPPRQ 3OHDV sXGJH sDPHV
                                                                       3 :LQWHU WKH MXGJH ZKR HQWHUHG WKH LQMXQFWLRQ
       *RWWIULHGY0HGLFDO3ODQQLQJHWDO            1R     1R          *RWWIULHGY0HGLFDO3ODQQLQJHWDO         

    FRQFHUWZLWKWKHPDQGDOORWKHUSHUVRQVZKRKDYHQRWLFH             Y/D+XH863LHUVRQY5D\86
    RIWKHLQMXQFWLRQ,QSHUWLQHQWSDUWLWSURKLELWVDQ\RQH           
    IURPSLFNHWLQJDW'U/DO
VKRPHDQGKLV2%*<1RIILFH
    LWSURWHFWVWKHGRRUZD\VDQGGULYHZD\VDW'U/DO
VFOLQLF             *RWWIULHGjVGDPDJHFODLPDJDLQVW6KHULII$OH[DQGHUEHDUV
    LWIRUELGVmPDVVSLFNHWLQJRUDQ\RWKHUW\SHRISLFNHWLQJ            FORVHULQVSHFWLRQ$OWKRXJKLWLVZHOOHVWDEOLVKHGWKDWVWDWHV
     ZKLFK GLUHFWO\ RU LQGLUHFWO\ LQWHUIHUHVl ZLWK WKH         DQGVWDWHRIILFHUVDFWLQJLQWKHLURIILFLDOFDSDFLWLHVDUHLPPXQH
    EXVLQHVV RI WKH FOLQLF DQG LW SUHYHQWV PRUH WKDQ IRXU      IURP VXLWV IRU GDPDJHV LQ IHGHUDO FRXUW VHH (GOHPDQ Y
    SHRSOHIURPSLFNHWLQJRQHDFKRIWKHVLGHZDONVLQIURQW              sRUGDQ86:LOOY0LFKLJDQ'HS
WRI6WDWH
    RI DQG DORQJVLGH WKH FOLQLF  %HFDXVH WKH SDUWLHV            3ROLFH  86    WKH (OHYHQWK $PHQGPHQW
    FRQVHQWHGWRWKLVLQMXQFWLRQLWZDVQRWDSSHDOHG                   mGRHVQRWH[WHQGWRFRXQWLHVDQGVLPLODUPXQLFLSDOLWLHVl0W
                                                                         +HDOWK\ &LW\6FKRRO'LVW%GRI(GXFY'R\OH86
       +ROO\ *RWWIULHG ZDV QRW D SDUW\ WR WKH VWDWH ODZVXLW     +HUH2KLRODZFODVVLILHVVKHULIIVDVFRXQW\
    VXSSRUWLQJWKHLQMXQFWLRQ6KHZDVRQO\WHQ\HDUVROG               RIILFLDOV  6HH 2KLR 5HY &RGH $QQ   
    ZKHQLWZDVHQWHUHG$QDQWLDERUWLRQDFWLYLVW*RWWIULHG           GHILQLQJ mFRXQW\ HOHFWHG RIILFLDOl WR LQFOXGH mFRXQW\
    ZDQWV WR SLFNHW DQG GLVWULEXWH LQIRUPDWLRQ DW 'U /DO
V      VKHULIIl  %HFDXVH 6KHULII $OH[DQGHU LV EHLQJ VXHG LQ KLV
    KRPHRIILFHDQGFOLQLFEXWVKHIHDUVVKHZLOOEHDUUHVWHG         RIILFLDOFDSDFLW\KHZRXOGEHOLDEOHWRWKHVDPHH[WHQWDVD
    LI VKH GRHV  2Q sXO\   VKH ILOHG WKLV VXLW LQ   PXQLFLSDOLW\ SUHVXPDEO\ 6XPPLW &RXQW\ XQGHU  
    IHGHUDOFRXUWDJDLQVW'U/DOKLVRIILFHKLVFOLQLFWKH           +RZHYHU LI 6KHULII $OH[DQGHU ZDV DFWLQJ QRW DV D FRXQW\
    &LW\RI$NURQ$NURQ3ROLFH&KLHI/DUU\*LYHQV6XPPLW               RIILFLDO EXW DV D VWDWH RIILFLDO KH LV HQWLWOHG WR (OHYHQWK
    &RXQW\ 6XPPLW &RXQW\ 6KHULII 5LFKDUG :DUUHQ DQG              $PHQGPHQW LPPXQLW\  m:KHUH FRXQW\ RIILFLDOV DUH VXHG
    sXGJHsDQH%RQGWKHVXFFHVVRUWRsXGJH:LQWHURQWKH                VLPSO\ IRU FRPSO\LQJ ZLWK VWDWH PDQGDWHV WKDW DIIRUG QR
    6XPPLW&RXQW\&RXUWRI&RPPRQ3OHDV7KURXJK                     GLVFUHWLRQ WKH\DFWDVDQDUPRIWKH6WDWHl%URWKHUWRQY
    86&   *RWWIULHG DVVHUWHG YLRODWLRQV RI KHU           &OHYHODQG  )G   WK &LU FLWDWLRQV
    FRQVWLWXWLRQDOULJKWVRIIUHHVSHHFKIUHHSUHVVSHDFHIXO           RPLWWHG6HHDOVR6FRWWY2
*UDG\)GWK
    DVVHPEO\ DVVRFLDWLRQ IUHH H[HUFLVH RI UHOLJLRQ GXH          &LU KROGLQJ WKDW FRXQW\ RIILFLDO DFWHG DV DUP RI WKH
    SURFHVVDQGHTXDOSURWHFWLRQXQGHUWKH8QLWHG6WDWHVDQG            6WDWHZKHUHRIILFLDOPHUHO\H[HFXWHGZULWSXUVXDQWWRVWDWH
    2KLR &RQVWLWXWLRQV  6KH DVNHG WKH 'LVWULFW &RXUW WR         QRQGLVFUHWLRQDU\GXW\FHUWGHQLHG86
    GHFODUHWKHLQMXQFWLRQXQFRQVWLWXWLRQDORQLWVIDFHRUDV            (FKROVY3DUNHU)GWK&LUILQGLQJ
    DSSOLHGDQGWRHQMRLQWKHGHIHQGDQWVIURPHQIRUFLQJWKH              WKDWORFDORIILFLDOVDFWHGDV6WDWHDJHQWVZKHQWKH\HQIRUFHG
    FKDOOHQJHGSRUWLRQVRIWKHLQMXQFWLRQDJDLQVWKHU6KH              D6WDWHDQWLER\FRWWVWDWXWHE\SURVHFXWLQJER\FRWWHUVVWDWLQJ
    DOVRUHTXHVWHGLQGDPDJHVLQDGGLWLRQWRKHU                m>D@FRXQW\RIILFLDOSXUVXHVKLVGXW\DVDVWDWHDJHQWZKHQKH
    FRVWVDQGDWWRUQH\
VIHHV                                           LVHQIRUFLQJVWDWHODZRUSROLF\l
      'U /DO KLV RIILFH DQG 0HGLFDO 3ODQQLQJ 6HUYLFHV            6KHULII$OH[DQGHUZDVREOLJDWHGWRHQIRUFHWKHVWDWHFRXUW
    PRYHG WR GLVPLVV *RWWIULHG
V FRPSODLQW XQGHU WKH               LQMXQFWLRQDVIROORZV
    $QWL,QMXQFWLRQ$FW&RORUDGR5LYHUDEVWHQWLRQDQGWKH
    5RRNHU)HOGPDQ GRFWULQH  7KH GLVWULFW FRXUW LQLWLDOO\             ,W LV )857+(5 25'(5(' $'s8'*(' DQG
    JUDQWHGWKLVPRWLRQZLWKRXWDKHDULQJ&KDUDFWHUL]LQJ                 '(&5(('WKDWWKH6KHULIIRI6XPPLW&RXQW\SURFHHG
    WKHFDVHDVSUHVHQWLQJmDQLVVXHRIIHGHUDOVWDWHFRPLW\               IRUWKZLWKWRVHUYHWKH'HIHQGDQW>V@DQGWKRVHDFWLQJLQ
    WKDW DSSHDUV XQLTXH LQ LWV IDFWXDO VHWWLQJl WKH FRXUW         FRQFHUW ZLWK WKHP ZLWK QRWLFH RI WKH WHUPV RI WKLV
       *RWWIULHGY0HGLFDO3ODQQLQJHWDO              1R         1R        *RWWIULHGY0HGLFDO3ODQQLQJHWDO            

IURPHDFKGHIHQGDQWQRPLQDOGDPDJHVDUHDOVRDYDLODEOHLQ                        GHWHUPLQHGWKDWWKH$QWL,QMXQFWLRQ$FW&RORUDGR5LYHU
DFWLRQV FODLPLQJ D YLRODWLRQ RI FRQVWLWXWLRQDOO\ SURWHFWHG                  DEVWHQWLRQDQG5RRNHU)HOGPDQGLGQRWEDU*RWWIULHG
V
ULJKWV  &DUH\ Y 3LSKXV  86                      IHGHUDOVXLW1RQHWKHOHVVWKHFRXUWGLVPLVVHGKHUFDVH
+RZHYHUDFODLPIRUGDPDJHVPXVWQRWEHmVRLQVXEVWDQWLDO                        UHDVRQLQJ WKDW mLI D QRQSDUW\ WR D FRQVHQW GHFUHH KDV
RUVRFOHDUO\IRUHFORVHGE\SULRUGHFLVLRQVWKDWWK>H@FDVHPD\                   VWDQGLQJWRFKDOOHQJHDVWDWHFRXUWFRQVHQWGHFUHHLQDQ
QRW SURFHHGl  0HPSKLV /LJKW *DV DQG :DWHU 'LYLVLRQ Y                  DFWLRQEURXJKWSXUVXDQWWR86&WKHQDFWLRQV
&UDIW86                                                     LQ VWDWH FRXUW ZKLFK DUH FRQFOXGHG E\ WKH HQWU\ RI D
                                                                                  FRQVHQWGHFUHHZLOOEHRIVFDQWYDOXHDQGWKHFRQFHSWVRI
   7KHNH\TXHVWLRQWKHUHIRUHLVZKHWKHU*RWWIULHGKDVDYLDEOH                   FRPLW\EHWZHHQWKHIHGHUDODQGVWDWHFRXUWVZLOOVXIIHUl
FODLPIRUGDPDJHV6KHGRHVQRW7REHJLQZLWKDQ\DZDUG                       *RWWIULHGWKHQILOHGIRUSRVWMXGJPHQWUHOLHI7KHFRXUW
RI GDPDJHV WR *RWWIULHG XQGHU   ZRXOG KDYH WR EH                   UHLQVWDWHG KHU FRPSODLQW DQG VFKHGXOHG DQ HYLGHQWLDU\
DVVHVVHGDJDLQVWRQO\WKH6XPPLW&RXQW\GHIHQGDQWVEHFDXVH                        KHDULQJ VSHFLILFDOO\ UHVHUYLQJ WKH MXULVGLFWLRQDO LVVXH
ZHDUHQRWVDWLVILHGWKDWWKH0HGLFDO3ODQQLQJGHIHQGDQWVDUH                     $IWHUWKHKHDULQJWKHFRXUWDJDLQGLVPLVVHGWKHFDVHmLQ
VWDWHDFWRUV$OWKRXJK*RWWIULHGDSSHDUVWRDUJXHWKDWWKH\                     WKHLQWHUHVWRIVWDWHIHGHUDOFRPLW\lZLWKRXWUXOLQJRQWKH
DUHVWDWHDFWRUVEHFDXVHWKH\VRPHKRZDFWLYHO\HQIRUFHGWKH                       FRQVWLWXWLRQDOLW\RIWKHLQMXQFWLRQ
LQMXQFWLRQE\FDOOLQJWKH6KHULIIZHFRQFOXGHRWKHUZLVH7KH
VWDWH FRXUW LQMXQFWLRQ VSHFLILFDOO\ VWDWHG WKDW WKH 6KHULII RI          *RWWIULHGY0HGLFDO3ODQQLQJ)GWK&LU
6XPPLW &RXQW\ KDV VXFK DQ REOLJDWLRQ  WKH IDFW WKDW WKH              
0HGLFDO 3ODQQLQJ GHIHQGDQWV SODFHG D SKRQH FDOO ZKHQ
SLFNHWHUV DSSHDUHG GRHV QRW UHQGHU WKHP VWDWH DFWRUV                       $OWKRXJK QRW PHQWLRQHG LQ WKH SULRU SDQHO RSLQLRQ WKH
0RUHRYHUZHGRQRWILQGWKHIDFWWKDWWKH0HGLFDO3ODQQLQJ                     GLVWULFWFRXUWKHOGDWZRGD\EHQFKWULDODQGPDGHH[WHQVLYH
GHIHQGDQWV LQLWLDWHG VWDWH FRXUW SURFHHGLQJV WR REWDLQ DQ                ILQGLQJVRIIDFWWKDWZHUHQRWFKDOOHQJHGRQWKHILUVWDSSHDO
LQMXQFWLRQWREHVWDWHDFWLRQ1RUKDV*RWWIULHGDOOHJHGWKDW                  7KH\ DUH VHW IRUWK LQ WKH GLVWULFW FRXUWjV 0HPRUDQGXP
WKH0HGLFDO3ODQQLQJGHIHQGDQWVSHWLWLRQHGWKHVWDWHFRXUWVLQ                  2SLQLRQRI'HFHPEHUDQGUHODWHWRWKHSDUWLHVSULRU
EDG IDLWK RU ZLWK NQRZOHGJH WKDW REWDLQLQJ DQ LQMXQFWLRQ                VWDWH FRXUW SURFHHGLQJV WKH SDUWLHVj SRVLWLRQV SLFNHWLQJ
ZRXOG EH XQFRQVWLWXWLRQDO  6HH /RXLVYLOOH $UD ,QWHU)DLWK               DFWLYLW\SULRUWRDQGDIWHUWKHVWDWHFRXUWLQMXQFWLRQDQG'U
&RPPLWWHHIRU8QLWHG)DUP:RUNHUVY1RWWLQJKDP/LTXRUV                        /DOjV 2%*<1 SUDFWLFH  7KHUH DUH DOVR ILQGLQJV DV WR
/WG  )G   WK &LU  DQG FDVHV FLWHG               *RWWIULHGLQFOXGLQJWKHLQLWLDWLRQRI*RWWIULHGjVFDVH
WKHUHLQ
                                                                                   $V QRWHG DERYH *RWWIULHG DSSHDOHG WKH GLVWULFW FRXUWjV
  $V WR WKH 6XPPLW &RXQW\ GHIHQGDQWV LW LV FOHDU WKDW                 GHFLVLRQWRDEVWDLQIURPUXOLQJRQWKHFRQVWLWXWLRQDOLW\RIWKH
*RWWIULHGKDVQRFODLPDJDLQVWsXGJH%RQG7KH6XSUHPH                        LQMXQFWLRQ$SDQHORIWKLVFRXUWDIILUPHGWKHGLVWULFWFRXUWjV
&RXUW KDV VSHFLILFDOO\ KHOG WKDW VWDWH MXGJHV DUH DEVROXWHO\            GHFLVLRQWRDEVWDLQEXWUHPDQGHGWKHFDVHmZLWKLQVWUXFWLRQV
LPPXQHIURPOLDELOLW\XQGHU86&$%DUUHWWY                    WRUHLQVWDWH*RWWIULHGjVDFWLRQDQGVWD\DQ\IXUWKHUSURFHHGLQJV
+DUULQJWRQ)GWK&LUFLWLQJ%ULVFRH                   SHQGLQJUHVROXWLRQLQWKHVWDWHFRXUWVl,GDW7KHSDQHO
                                                                                DOVRQRWHGWKDWLWVGHFLVLRQOHIW*RWWIULHGZLWKWZRRSWLRQVLQ
                                                                                VWDWHFRXUW
                                                                                   ,IVKHIUHHO\DQGZLWKRXWUHVHUYDWLRQSUHVHQWVKHU
                                                                                  FRQVWLWXWLRQDOFRQFHUQVWRWKHVWDWHFRXUWOLWLJDWHVWKHP
     7KLV LVVXH DSSDUHQWO\ ZDV UDLVHG LQ WKH GLVWULFW FRXUW EXW WKH GLVWULFW
FRXUW GHFOLQHG WR FRQVLGHU LW LQ OLJKW RI LWV UXOLQJ WKDW WKH VWDWH FRXUW
LQMXQFWLRQ ZDV FRQVWLWXWLRQDO                                                    WKHUHDQGKDVWKHPGHFLGHGWKHUHWKHQVKHZLOOIRUHJR
          *RWWIULHGY0HGLFDO3ODQQLQJHWDO            1R        1R         *RWWIULHGY0HGLFDO3ODQQLQJHWDO        

    KHUULJKWWRUHWXUQWRIHGHUDOFRXUWKHURQO\UHOLHIZLOOEH              2IILFLDO (QJOLVK Y $UL]RQD  86   Q 
    IURP WKH 2KLR DSSHOODWH FRXUWV DQG LQ UHYLHZ E\ WKH               FLWLQJ8QLWHG6WDWHV3DUROH&RPP
QY*HUDJKW\86
    8QLWHG6WDWHV6XSUHPH&RXUWRQFHUWLRUDUL,GDW                 TXRWLQJ0RQDJKDQ&RQVWLWXWLRQDO$GMXGLFDWLRQ
    6&WDW+HURWKHURSWLRQZLOOEHWRQRWLI\WKH                   7KH:KRDQG:KHQ<DOH/s$FDVH
    VWDWH FRXUW RI KHU FRQVWLWXWLRQDO REMHFWLRQV EXW WR                 LVPRRWZKHQWKHLVVXHVSUHVHQWHGDUHQRORQJHUmOLYHlRUWKH
    H[SOLFLWO\UHVHUYHIHGHUDOMXULVGLFWLRQRYHUWKHPVKRXOG                   SDUWLHV ODFN D OHJDOO\ FRJQL]DEOH LQWHUHVW LQ WKH RXWFRPH
    WKHVWDWHFRXUWGHFLGHWKDWWKHLQMXQFWLRQSURVFULEHVKHU                  &RXQW\RI/RV$QJHOHVY'DYLV86
    DFWLRQV0LJUD86DWQ6&WDWQ                  m7KHPRRWQHVVLQTXLU\PXVWEHPDGHDWHYHU\VWDJHRIDFDVH
     (QJODQG  86 DW   6&W DW                   WKXVLIDFDVHEHFRPHVPRRWGXULQJDQDSSHDOWKHMXGJPHQW
    *RYHUQPHQW	&LYLF(PSOR\HHV2UJDQL]LQJ&RPP&,2                         EHORZ PXVW EH YDFDWHG DQG WKH FDVH UHPDQGHG ZLWK
    Y:LQGVRU866&W                     LQVWUXFWLRQVWRGLVPLVVl0F3HKHUVRQY0LFKLJDQ+LJK6FK
    /(GG7KLVODWWHURSWLRQZLOOSURWHFWKHU                   $WKOHWLF$VVjQ)GWK&LU:KHQD
    IURP WKH SUHFOXVLYH HIIHFWV RI WKH VWDWH SURFHHGLQJ                FDVH EHFRPHV PRRW RQ DSSHDO DQ $UWLFOH ,,, FDVH RU
    DOORZLQJKHUWRUHWXUQWRIHGHUDOFRXUWIRUGHWHUPLQDWLRQ                  FRQWURYHUV\ QR ORQJHU H[LVWV DQG WKH FRXUWV DUH ZLWKRXW
    RI WKH PHULWV RI KHU FRQVWLWXWLRQDO FODLP DIWHU VKH                MXULVGLFWLRQWRFRQVLGHUWKHPHULWVRIWKHDSSHDO+RQLJ Y
    H[KDXVWVKHUUHPHGLHVLQWKHVWDWHFRXUWV6HH(QJODQG                   'RH  86     m,Q DQDO\]LQJ LVVXHV RI
    86DW6&WDW                                    PRRWQHVVLWLVKHOSIXOWRNHHSLQPLQGWKDWµm>W@KHVHSUREOHPV
                                                                               RIWHQUHTXLUHDKLJKO\LQGLYLGXDOLVWLFDQGXVXDOO\LQWXLWLYH
,G                                                                           DSSUDLVDORIWKHIDFWVRIHDFKFDVHjl0F3KHUVRQ)GDW
                                                                                0RRUH s GLVVHQWLQJ TXRWLQJ $ &KDUOHV $ODQ
*RWWIULHGFKRVHWKHODWWHURSWLRQDQGUHWXUQHGWRVWDWHFRXUWE\               :ULJKW $UWKXU 5 0LOOHU DQG (GZDUG + &RRSHU )HGHUDO
ILOLQJDQDFWLRQLQSURKLELWLRQZLWKWKH2KLR6XSUHPH&RXUW                  3UDFWLFHDQG3URFHGXUHDWGHG
ZKLFKZDVGHQLHG
                                                                                                               
                                                                                 *RWWIULHG FRQFHGHV WKDW KHU FODLP IRU LQMXQFWLYH UHOLHI LV
                                                                               PRRWEXWDUJXHVWKDWWKHFDVHLWVHOILVQRWPRRWEHFDXVHKHU
                                                                               FODLP IRU GDPDJHV XQGHU  86&   FRQWLQXHV
                                                                               *RWWIULHG SULPDULO\ UHOLHV WKH IROORZLQJ VWDWHPHQW LQ
                                                                               %XFNKDQQRQ%GDQG+HDOWK&DUH+RPH,QFY:HVW9LUJLQLD
                                                                               'HSWRI+HDOWK	+XPDQ6HUY6&WLQ
                                                                              ZKLFKWKH6XSUHPH&RXUWVDLGmVRORQJDVWKHSODLQWLIIKDVD
       8QGHU 2KLR ODZ D ZULW RI SURKLELWLRQ LV FRQVLGHUHG DQ H[WUDRUGLQDU\
UHPHG\ ZKLFK ZLOO EH LVVXHG WR SURKLELW WKH H[HUFLVH RI MXGLFLDO SRZHU
                                                                               FDXVHRIDFWLRQIRUGDPDJHVDGHIHQGDQWjVFKDQJHLQFRQGXFW
RQO\ ZKHQ D WULDO MXGJH ODFNV HLWKHU SHUVRQDO RU VXEMHFW PDWWHU MXULVGLFWLRQ   ZLOOQRWPRRWWKHFDVHl6&WDW,QGHHGZKHUHD
LQ D FDVH 6HH HJ *ROGVWHLQ Y &KULVWLDQVHQ  2KLR 6W G         FODLP IRU LQMXQFWLYH UHOLHI LV PRRW UHOLHI LQ WKH IRUP RI
 7KH 6XSUHPH &RXUW RI 2KLR KDV LQGLFDWHG WKDW WKH ZULW ZLOO OLH         GDPDJHV IRU D SDVW FRQVWLWXWLRQDO YLRODWLRQ LV QRW DIIHFWHG
RQO\ ZKHQ WKH UHODWRU FDQ GHPRQVWUDWH  WKH WULDO MXGJH LQWHQGV WR          6HH8QLYHUVLW\RI7H[DVY&DPHQLV86
H[HUFLVH MXGLFLDO SRZHU  WKH SURSRVHG XVH RI SRZHU LV QRW DXWKRUL]HG
XQGHU WKH ODZ DQG  WKH GHQLDO RI WKH ZULW ZLOO FDXVH DQ LQMXU\ IRU ZKLFK
                                                                               3RZHOOY0F&RUPDFN86
WKH UHODWRU KDV QR DGHTXDWH UHPHG\ DW ODZ 6WDWH H[ UHO .D\ORU Y             0RUHRYHUZKLOH*RWWIULHGVSHFLILFDOO\VRXJKWFRPSHQVDWRU\
%UXHQLQJ  2KLR 6W G                                         GDPDJHVDQGSXQLWLYHGDPDJHVLQ WKHDPRXQWRI
    *RWWIULHGY0HGLFDO3ODQQLQJHWDO          1R    1R           *RWWIULHGY0HGLFDO3ODQQLQJHWDO             

  EXUGHQVQRPRUHVSHHFKWKDQQHFHVVDU\WRDFFRPSOLVKD                7KHUHDIWHU LQ  *RWWIULHG UHWXUQHG WR GLVWULFW FRXUW
  OHJLWLPDWHJRDO"                                                  DJDLQUDLVLQJKHUFRQVWLWXWLRQDOFODLPV2Q'HFHPEHU
                                                                    WKHGLVWULFWFRXUWHQWHUHGDQRUGHUUHTXHVWLQJWKHSDUWLHV
   7KH 6XPPLW &RXQW\ GHIHQGDQWV SUHVHQW WKH IROORZLQJ         WR EULHI HLJKW LVVXHV UHJDUGLQJ WKH PHULWV RI *RWWIULHGjV
LVVXHV                                                             FRQVWLWXWLRQDOFODLPLQFOXGLQJKHUHQWLWOHPHQWWRGDPDJHVE\
                                                                    sDQXDU\6HHGLVWULFWFRXUWjVRUGHURI'HFHPEHU
  $UH WKH 6XPPLW &RXQW\ 6KHULII DQG sXGJH sDQH %RQG           'HIHQGDQWV$SSHOOHHV UHTXHVWHG DQG ZHUH JUDQWHG
  HVVHQWLDOO\QRPLQDOGHIHQGDQWVLQWKHHQIRUFHPHQWRID            DGGLWLRQDOEULHILQJWLPHEHFDXVHWKH\ZHUHVHHNLQJWRKDYHWKH
  FRQVHQWVWDWHFRXUW2UGHU"                                        VWDWHFRXUWLQMXQFWLRQGLVVROYHG,QIDFW0HGLFDO3ODQQLQJ
                                                                    UHWXUQHGWRWKH&RXUWRI&RPPRQ3OHDVRI6XPPLW&RXQW\
  $IWHU D VWDWH FRXUW FRQVHQW 2UGHU LV GLVVROYHG LV WKH   2KLRDQGPRYHGWRGLVVROYHWKHLQMXQFWLRQ$SSDUHQWO\'U
  IHGHUDOFDXVHRIDFWLRQEDVHGRQLWVHQIRUFHPHQWUHQGHUHG         /DOWKHSK\VLFLDQZKRSHUIRUPHGDERUWLRQVDWWKHFOLQLFKDG
  PRRW"                                                             UHWLUHG IURP WKH DFWLYH SUDFWLFH RI PHGLFLQH DQG KDG QRW
                                                                    SHUIRUPHG DQ\ DERUWLRQV DW WKH FOLQLF VLQFH ODWH   2Q
  )ROORZLQJUHFHLSWRIWKHSDUWLHVjEULHIVWKHSDQHOUHTXHVWHG     sDQXDU\   WKH 6XPPLW &RXQW\ &RXUW RI &RPPRQ
DGGLWLRQDOEULHILQJRQWKHPRRWQHVVLVVXH8SRQUHYLHZRIWKH      3OHDVGLVVROYHGWKHLQMXQFWLRQ
UHFRUGZHILQGWKHLVVXHRQDSSHDOWREHDVIROORZV
                                                                       ,QLWV0HPRUDQGXP2SLQLRQRI0DUFKWKHGLVWULFW
  ,VWKHFDVHPRRWZKHUHWKHVWDWHFRXUWLQMXQFWLRQDWLVVXH        FRXUWIUDPHGWKHLVVXHIRUGHFLVLRQDVmZKHWKHUWKHFKDOOHQJHG
  KDVEHHQGLVVROYHGDQGZKHUHSODLQWLIIGRHVQRWKDYHD            SRUWLRQVRIWKHVWDWHFRXUWLQMXQFWLRQLQHIIHFWIURP$XJXVW
  YLDEOHFODLPIRUGDPDJHVDJDLQVWDQ\RIWKHGHIHQGDQWV"           WRsDQXDU\YLRODWHGSODLQWLII+ROO\*RWWIULHGjV
:HDQVZHUWKLVTXHVWLRQLQWKHDIILUPDWLYH                         )LUVW$PHQGPHQWULJKWVDQGLIVRZKHWKHUWKHVHGHIHQGDQWV
                                                                    DUH OLDEOHl  7KH GLVWULFW FRXUW WKHQ UHSHDWHG LWV H[WHQVLYH
                   ,96WDQGDUGRI5HYLHZ                          ILQGLQJVRIIDFWRULJLQDOO\VHWIRUWKLQLWV'HFHPEHU
                                                                    0HPRUDQGXP2SLQLRQZKLFKLQFOXGHGWKHIROORZLQJXQGHU
  /HJDOTXHVWLRQVDUHUHYLHZHGGHQRYRILQGLQJVRIIDFWDUH        WKHKHDGLQJm3RVLWLRQVRIWKH3DUWLHVl
UHYLHZHG IRU FOHDU HUURU  6HH 3LQHWWH Y &DSLWDO 6TXDUH
5HYLHZ DQG $GYLVRU\ %RDUG  )G   WK &LU         3ODLQWLII+ROO\*RWWIULHGLVRSSRVHGWRDERUWLRQDQG
                                                                    KDVVWDWHGWKDWVKHGHVLUHVDQGLQWHQGVWRSHDFHIXOO\
                                                                          SLFNHW DQG GLVWULEXWH OLWHUDWXUH DERXW DERUWLRQ
                          9$QDO\VLV                                    DOWHUQDWLYHVRQWKHSXEOLFZDONZD\VDQGVLGHZDONV
                                                                          DGMDFHQWWRWKH03$0HGLFDO&OLQLFWKH2%*<1
                                $                                        2IILFHUDQG'U/DOjVKRPH

                                
  0RRWQHVVKDVEHHQGHVFULEHGDVmµWKHGRFWULQHRIVWDQGLQJ             
VHWLQDWLPHIUDPH7KHUHTXLVLWHSHUVRQDOLQWHUHVWWKDWPXVW           7KH SDUWLHV EULHIHG WKH LVVXH RI ZKHWKHU *RWWIULHG PHDQLQJIXOO\
                                                                    FRPSOLHG ZLWK WKLV FRXUWjV RUGHU RI UHPDQG E\ ILOLQJ DQ DFWLRQ LQ
H[LVWDWWKHFRPPHQFHPHQWRIWKHOLWLJDWLRQVWDQGLQJPXVW         SURKLELWLRQ ZLWK 2KLRjV 6XSUHPH &RXUW 7KH GLVWULFW FRXUW FRQFOXGHG WKDW
FRQWLQXHWKURXJKRXWLWVH[LVWHQFHPRRWQHVVjl$UL]RQDQVIRU       VKH KDG DV *RWWIULHG PDGH LW FOHDU VKH ZDV QRW ZDYLQJ KHU IHGHUDO FODLPV
                                                                    7KLV LVVXH LV QRW RQ DSSHDO
        *RWWIULHGY0HGLFDO3ODQQLQJHWDO                     1R        1R         *RWWIULHGY0HGLFDO3ODQQLQJHWDO            

     7KH0HGLFDO3ODQQLQJGHIHQGDQWVRUWKHLUHPSOR\HHV                                7KLV&RXUWLVRIWKHYLHZWKDWSODLQWLIILVHQWLWOHGWRD
        DQG DJHQWV LQWHQG WR HQIRUFH DQG ZLOO HQIRUFH WKH                       UXOLQJ  ,Q IDFW WKLV LV ZKDW ZDV FRQWHPSODWHG E\ WKH
        6WDWH&RXUW2UGHU                                                              &RXUWRI$SSHDOVZKHQLWLQGLFDWHGWKDW*RWWIULHGZRXOG
     7KH6XPPLW&RXQW\6KHULIILVUHTXLUHGE\WHUPVRI                              EHDOORZHGmWRUHWXUQWRIHGHUDOFRXUWIRUGHWHUPLQDWLRQ
        WKH6WDWH&RXUW2UGHUWRDFWLYHO\HQIRUFHLW                                  RI WKH PHULWV RI KHU FRQVWLWXWLRQDO FODLP DIWHU VKH
     7KH6KHULIIKDVHQIRUFHGWKH6WDWH&RXUW2UGHUVLQFH                            H[KDXVWVKHUUHPHGLHVLQWKHVWDWHFRXUWV*RWWIULHGY
        LWZDVHQWHUHGEXWWKH6KHULIIGRHVQRWVSHFLILFDOO\                           0HGLFDO3ODQQLQJ6HUYLFHV,QF)GDW
        PRQLWRURUSDWUROWKHORFDWLRQVZKLFKDUHWKHVXEMHFW                             :KLOHWKHVWDWHFRXUWLQMXQFWLRQZDVVWLOOLQSODFHWKHUH
        RIWKH6WDWH&RXUW2UGHU7KHRQO\WLPHVWKDWWKH                              ZHUH WKRUQ\ OHJDO LVVXHV ZKLFK WKLV &RXUW ZDQWHG WKH
        6KHULIIKDVDFWHGWRHQIRUFHWKH6WDWH&RXUW2UGHULV                           SDUWLHVWREULHI+RZHYHUQRZWKDWWKHLQMXQFWLRQLVRXW
        ZKHQFRQWDFWHGE\WKH0HGLFDO3ODQQLQJ'HIHQGDQWV                               RI WKH SLFWXUH WKH OHJDO TXHVWLRQV WKDW UHPDLQ FDQ EH
        RUWKHLUUHSUHVHQWDWLYHV                                                       UHVROYHGZLWKRXWIXUWKHUEULHILQJDVWKH&RXUWKDVDOUHDG\
                                                                                        PDGHH[WHQVLYHILQGLQJVRIIDFWVHH'RF1RZKLFK
  7KH GLVWULFW FRXUW GLG KRZHYHU DFNQRZOHGJH WKDW WKH                          ZHUHQRWFKDOOHQJHGGXULQJWKHRULJLQDODSSHDO
GLVVROXWLRQ RI WKH VWDWH FRXUW LQMXQFWLRQ UDLVHG WKH LVVXH RI
PRRWQHVV EXW GHWHUPLQHG WKDW *RWWIULHG ZDV HQWLWOHG WR D                     $FFRUGLQJO\WKHGLVWULFWFRXUWZHQWRQWRDGGUHVVWKHPHULWV
UXOLQJRQWKHPHULWV7KHGLVWULFWFRXUWH[SODLQHG                                  RI*RWWIULHGjVFODLPXOWLPDWHO\FRQFOXGLQJWKDWWKHVWDWHFRXUW
                                                                                      LQMXQFWLRQ ZDV FRQWHQW QHXWUDO DQG GLG QRW LPSRVH DQ
       7KHVWDWHFRXUWLQMXQFWLRQZDVYDFDWHGRQsDQXDU\                          XQQHFHVVDU\EXUGHQRQ*RWWIULHGjV)LUVW$PHQGPHQWULJKWV
    ,WWKHUHIRUHKDVQRPRUHHIIHFWDQGQRDELOLW\WR
    SUHFOXGH SODLQWLII IURP WKH DFWLRQV VKH ZLVKHV WR WDNH                                        ,,,,VVXHVRQ$SSHDO
    3ODLQWLIIKRZHYHUPDLQWDLQVWKDWVKHLVHQWLWOHGWRWKH
    GHFODUDWRU\ DQG LQMXQFWLYH UHOLHI VKH RULJLQDOO\ VRXJKW                      *RWWIULHGSUHVHQWVWKHIROORZLQJLVVXHVRQDSSHDO
    DQG WR GDPDJHV DQG DWWRUQH\ IHHV EHFDXVH KHU )LUVW
    $PHQGPHQWULJKWVZHUHYLRODWHGIURPDWOHDVWWKHWLPHRI                            'RHVWKH)LUVW$PHQGPHQWDOORZD6WDWH&RXUWLQMXQFWLRQ
    ILOLQJWKLVODZVXLWXQWLOWKHVHWWLQJDVLGHRIWKHVWDWHFRXUW                      WREDUSHDFHIXOODZIXOVSHHFKE\WKHJHQHUDOSXEOLFRQ
    LQMXQFWLRQ'HIHQGDQWV0HGLFDO3ODQQLQJ6HUYLFHV,QF                           SXEOLFVLGHZDONV"
    2IILFHVRI'U0DQRKDU/DO0'DQG'U0DQRKDU/DO
    KLPVHOIDSSHDUWRWDNHWKHSRVLWLRQWKDWWKHPDWWHUKDV                            'RHVWKH)LUVW$PHQGPHQWDOORZWKHJHQHUDOSXEOLFWREH
    HLWKHUEHHQUHQGHUHGPRRWRUFDQQRWEHSXUVXHGDJDLQVW                              EDQQHG IURP SHDFHIXOO\ FRQYH\LQJ D PHVVDJH DERXW
    WKHP XQGHU   6HFWLRQ  EHFDXVH WKH\ DUH QRW VWDWH                        DERUWLRQDOWHUQDWLYHVRQWKHSXEOLFVLGHZDONVDGMDFHQWWR
    DFWRUV                                                                          'U /DOjV 2%*<1 RIILFH EHFDXVH WKH 'LVWULFW &RXUW
                                                                                        KROGVWKDWWKHPHVVDJHZLOOFDXVHmLQMXU\l"
                                                                                        7KH 0HGLFDO 3ODQQLQJ GHIHQGDQWV SUHVHQW WKH LVVXH DV
                                                                                      IROORZV
     
        ,Q   D IRRWQRWH WKH GLVWULFW FRXUW VWDWHG WKDW m>W@KH RWKHU GHIHQGDQWV
6XPPLW &RXQW\ 6KHULII 5LFKDUG :DUUHQ DQG sXGJH sDQH %RQG KDYH QRW                      'RHV D VWDWH FRXUW KDYH WKH DXWKRULW\ WR HQWHU DQ
WDNHQ    D   SRVLWLRQ   7KH\   KRZHYHU   DSSHDU   WR   EH   SUDFWLFDOO\   QRPLQDO     LQMXQFWLRQWKDWHVWDEOLVKHVOLPLWVRQSLFNHWLQJDFWLYLW\LQ
GHIHQGDQWV QDPHG QRW EHFDXVH RI DQ\ SHUVRQDO DFWLRQV RQ WKHLU SDUWV EXW
                                                                                        OLJKWRIWKHSDUWLFXODUIDFWXDOFLUFXPVWDQFHVDQGZKLFK
RQO\ EHFDXVH RI WKHLU RIILFLDO UROHV LQ UHODWLRQV WR WKH QRZGHIXQFW VWDWH
FRXUW LQMXQFWLRQl