Court Opinion

ID: 2970337
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:10:06.347472+00
Date Added: 2024-06-11T11:43:29.348446
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

,QUH&,7< 2) 0(03+,6         ;
                   3HWLWLRQHU    
BBBBBBBBBBBBBBBBBBBBBB            
                                    1R
                                  
:(67 7(11(66(( &+$37(5             !
                                  
2) $662&,$7(' %8,/'(56            
$1' &2175$&7256 ,1&            
=(//1(5 &216758&7,21              
&203$1< ,1&                    
          3ODLQWLIIV$SSHOOHHV 
                                  
                                  
           Y                     
                                  
&,7< 2) 0(03+,6                  
         'HIHQGDQW$SSHOODQW 
                                 1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
   IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHHDW0HPSKLV
   1Rn%HUQLFH%'RQDOG'LVWULFWsXGJH
               $UJXHGsDQXDU\
           'HFLGHGDQG)LOHG0D\

                           
       ,QUH&LW\RI0HPSKLV                            1R    1R                       ,QUH&LW\RI0HPSKLV      

    %HIRUH*8<DQG&/$<&LUFXLWsXGJHV18*(17                      OLWLJDWLRQ,QDGGLWLRQXSKROGLQJsXGJH'RQDOGjVFHUWLILFDWLRQ
                     'LVWULFWsXGJH
                                   RUGHUZRXOGXOWLPDWHO\VDYHWKHSDUWLHVWLPHDQGH[SHQVHE\
                                                                        DYRLGLQJ WKH QHHG IRU DGGLWLRQDO GLVFRYHU\ DQG FRXUW
                       BBBBBBBBBBBBBBBBB                                SURFHHGLQJVLIRXU&RXUWGHWHUPLQHGDIWHUILQDOMXGJPHQWWKDW
                                                                        D GHFLVLRQ WR SHUPLW SRVWHQDFWPHQW HYLGHQFH ZDV QRW
                             &2816(/                                    HUURQHRXV,WKHUHIRUHUHVSHFWIXOO\GLVVHQW
$5*8('  0RQLND / sRKQVRQ &,7< $77251(<6
2)),&( 0HPSKLV 7HQQHVVHH IRU $SSHOODQW  6WHSKHQ /
6KLHOGV s$&.621 6+,(/'6 	 <(,6(5 &RUGRYD
7HQQHVVHHIRU$SSHOOHHV21%5,()0RQLND/sRKQVRQ
5REHUW / s 6SHQFH sU &,7< $77251(<6 2)),&(
0HPSKLV 7HQQHVVHH IRU $SSHOODQW  6WHYHQ / 6KLHOGV
sDPHV / +ROW sU s$&.621 6+,(/'6 	 <(,6(5
&RUGRYD7HQQHVVHHIRU$SSHOOHHV
  *8< s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
18*(17'sMRLQHG&/$<sSSGHOLYHUHGD
VHSDUDWHGLVVHQWLQJRSLQLRQ
                       BBBBBBBBBBBBBBBBB
                           23,1,21
                       BBBBBBBBBBBBBBBBB
   5$/3+%*8<s5&LUFXLWsXGJH'HIHQGDQW&LW\RI
0HPSKLV&LW\DSSOLHVIRUSHUPLVVLRQWRDSSHDOIURPWKH
GLVWULFW FRXUWjV RUGHU KROGLQJ WKDW SRVWHQDFWPHQW HYLGHQFH
FDQQRWEHSUHVHQWHGE\WKH&LW\WRGHPRQVWUDWHDFRPSHOOLQJ
QHHG IRU DZDUGLQJ FRQVWUXFWLRQ FRQWUDFWV EDVHG RQ UDFLDO
SUHIHUHQFHV  3ODLQWLIIV :HVW 7HQQHVVHH &KDSWHU RI
$VVRFLDWHG %XLOGHUV DQG &RQWUDFWRUV ,QF DQG =HOOQHU
&RQVWUXFWLRQ&RPSDQ\,QFDUJXHWKDWWKH&LW\jVDSSOLFDWLRQ
LV QRW WLPHO\ DQG WKDW WKH VWDWXWRU\ UHTXLUHPHQWV IRU
LQWHUORFXWRU\ UHYLHZ KDYH QRW EHHQ PHW XQGHU  86&
 E  $IWHU UHYLHZ RI WKH UHFRUG WKH ODZ DQG WKH

    
     7KH +RQRUDEOH 'RQDOG & 1XJHQW 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
    ,QUH&LW\RI0HPSKLV                            1R       1R                             ,QUH&LW\RI0HPSKLV        

                      BBBBBBBBBBBBBBBBB                                  DUJXPHQWV ZH ILQG LQWHUORFXWRU\ UHYLHZ LV QRW DSSURSULDWH
                                                                         XQGHUEDQGGHQ\WKHDSSOLFDWLRQ
                          ',66(17
                      BBBBBBBBBBBBBBBBB                                                                     ,
  &/$<&LUFXLWsXGJHGLVVHQWLQJ%HFDXVH,DPFRQYLQFHG                 3ODLQWLIIV EURXJKW WKLV DFWLRQ RQ sDQXDU\  
WKDW WKH GLVWULFW FRXUWjV RUGHU EDUULQJ WKH XVH RI SRVW        FKDOOHQJLQJ WKH XVH RI PLQRULW\ SUHIHUHQFHV E\ WKH &LW\ LQ
HQDFWPHQWHYLGHQFHSUHVHQWVDFRQWUROOLQJTXHVWLRQRIODZ,             DZDUGLQJFRQVWUXFWLRQFRQWUDFWVXQGHUWKH&LW\jV0LQRULW\	
ZRXOGJUDQWWKHLQWHUORFXWRU\DSSHDODQGVXEPLWWKHPDWWHUWR            :RPHQ%XVLQHVV(QWHUSULVH3URFXUHPHQW3URJUDP0:%(
DSDQHOIRUUHVROXWLRQRQWKHPHULWV                                    SURJUDP3ODLQWLIIVDOOHJHGLQUHOHYDQWSDUWWKDWWKH0:%(
                                                                         SURJUDPYLRODWHGWKH)RXUWHHQWK$PHQGPHQW
   7KLV&RXUWKDVSUHYLRXVO\UHFRJQL]HGWKDWWKHmFRQWUROOLQJl
QDWXUH RI D OHJDO TXHVWLRQ GRHV QRW GHSHQG RQ ZKHWKHU LWV        7KH&LW\DGRSWHGWKH0:%(SURJUDPLQDVDUHPHG\
UHVROXWLRQ ZLOO LPPHGLDWHO\ GLVSRVH RI WKH OLWLJDWLRQ             IRUSDVWGLVFULPLQDWLRQDQGWRSUHYHQWIXWXUHGLVFULPLQDWLRQ
mµ5DWKHUDOOWKDWPXVWEHVKRZQLQRUGHUIRUDTXHVWLRQWREH           $WWKHWLPHRIHQDFWPHQWWKH&LW\UHOLHGRQDGLVSDULW\VWXG\
mFRQWUROOLQJlLVWKDWUHVROXWLRQRIWKHLVVXHRQDSSHDOFRXOG            FRYHULQJWKHSHULRGIURPWR%DVHGRQWKDWVWXG\
PDWHULDOO\DIIHFWWKHRXWFRPHRIWKHOLWLJDWLRQLQWKHGLVWULFW          WKH &LW\ FRQFOXGHG WKDW LW ZDV DQ DFWLYH DQG SDVVLYH
FRXUWjl5DIRWKY1DWjO8QLRQ)LUH,QV&R,QUH%DNHU	             SDUWLFLSDQWLQGLVFULPLQDWLRQ
*HWW\ )LQ 6HUYV ,QF  )G   Q WK &LU
TXRWLQJ$UL]RQDY,GHDO%DVLF,QGXV,QUH&HPHQW                 ,Q UHVSRQVH WR WKLV OLWLJDWLRQ WKH &LW\ SURSRVHG WR
$QWLWUXVW/LWLJDWLRQ)GWK&LU              FRPPLVVLRQDQHZVWXG\WKDWZRXOGFRYHUWKHSHULRGIURP
:ULJKWDQG0LOOHUUHFRPPHQGWDNLQJDSUDFWLFDOYLHZRIWKH                WR   7KH &LW\ ZLVKHV WR XVH WKLV SRVWHQDFWPHQW
mFRQWUROOLQJTXHVWLRQlUHTXLUHPHQWH[SODLQLQJWKDWDTXHVWLRQ           VWXG\DVHYLGHQFHWRGHPRQVWUDWHDFRPSHOOLQJJRYHUQPHQWDO
LVFRQWUROOLQJmLILQWHUORFXWRU\UHYHUVDOPLJKWVDYHWLPHIRUWKH        LQWHUHVW7KHGLVWULFWFRXUWUXOHGRQsXQHWKDWWKH&LW\
GLVWULFW FRXUW DQG WLPH DQG H[SHQVH IRU WKH OLWLJDQWVl     FRXOGQRWLQWURGXFHWKHSRVWHQDFWPHQWVWXG\DVHYLGHQFHRID
&+$5/(6 $/$1 :5,*+7 $57+85 5 0,//(5 	 (':$5' +                        FRPSHOOLQJJRYHUQPHQWDOLQWHUHVW7KHGLVWULFWFRXUWLQLWLDOO\
&223(5)('(5$/ 35$&7,&( $1' 352&('85(   DW                    GHQLHGWKH&LW\jVPRWLRQWRFHUWLI\DQLQWHUORFXWRU\DSSHDO
GHG
                                                                           ,QUHVSRQVHWRWKH&LW\jVPRWLRQWRUHFRQVLGHUFHUWLILFDWLRQ
   8QGHU RXU FKDUDFWHUL]DWLRQ LQ ,Q UH %DNHU 	 *HWW\             WKH GLVWULFW FRXUW FHUWLILHG DQ LQWHUORFXWRU\ DSSHDO RQ
)LQDQFLDO 6HUYLFHV DQG WKH FKDUDFWHUL]DWLRQ DGYDQFHG E\           'HFHPEHU ,WLVXQGLVSXWHGWKDWWKHSDUWLHVGLGQRW
:ULJKW DQG 0LOOHU UHVROXWLRQ RI WKH DGPLVVLELOLW\ RI SRVW      UHFHLYHQRWLFHRIHQWU\RIWKHRUGHUXQWLODIWHUWKHH[SLUDWLRQRI
HQDFWPHQWHYLGHQFHSUHVHQWVDFRQWUROOLQJTXHVWLRQLQDVPXFK              WKHGD\SHULRGIRUILOLQJDQDSSOLFDWLRQIRULQWHUORFXWRU\
DV UHVROYLQJ WKH DGPLVVLELOLW\ RI SRVWHQDFWPHQW HYLGHQFH          DSSHDOWRWKLVFRXUW2QsDQXDU\WKHGLVWULFWFRXUWVXD
ZRXOG GLFWDWH WKH FRXUVH DQG GXUDWLRQ RI GLVFRYHU\ LQ WKLV      VSRQWH HQWHUHG DQ RUGHU JUDQWLQJ WKH &LW\ DQ DGGLWLRQDO 
OLWLJDWLRQDVZHOODVWKHFRQWHQWRIDQ\GLVSRVLWLYHPRWLRQVRU         GD\VWRILOHWKHLQWHUORFXWRU\DSSHDO2Q0D\WKLV
WULDO  )RU H[DPSOH LI WKLV &RXUW GHWHUPLQHG RQ DQ
LQWHUORFXWRU\EDVLVWKDWWKH&LW\RI0HPSKLVPD\XWLOL]HSRVW
HQDFWPHQWHYLGHQFHWKDWUXOLQJZRXOGIXQGDPHQWDOO\VKDSH                    
WKH QDWXUH RI WKH FDVH SUHVHQWHG LQ WKH GLVWULFW FRXUW DQG
                                                                              sXGJH sHURPH 7XUQHU GHQLHG FHUWLILFDWLRQ LQ sXO\  $IWHU sXGJH
                                                                         7XUQHUjV GHDWK sXGJH %HUQLFH 'RQDOG ZDV DVVLJQHG WR WKH FDVH DQG
ZRXOGWKHUHIRUHKDYHDPDWHULDOLPSDFWRQWKHRXWFRPHRIWKH             JUDQWHG WKH PRWLRQ WR FHUWLI\ WKH LQWHUORFXWRU\ DSSHDO
     ,QUH&LW\RI0HPSKLV                         1R       1R                          ,QUH&LW\RI0HPSKLV          

FRXUWGHQLHGWKHDSSOLFDWLRQIRULQWHUORFXWRU\DSSHDOILQGLQJ         PXVW KDYH SUHHQDFWPHQW HYLGHQFH VXIILFLHQW WR MXVWLI\ D
WKDW WKH GLVWULFW FRXUW FRXOG QRW H[WHQG WKH GD\ SHULRG   UDFLDOO\FRQVFLRXVVWDWXWH,WDOVRLQGLFDWHVWKDWWKLVFLUFXLW
XQGHU86&E                                            ZRXOGQRWIDYRUXVLQJSRVWHQDFWPHQWHYLGHQFHWRPDNHWKDW
                                                                      VKRZLQJ
  2Q0D\WKH&LW\ILOHGDPRWLRQDVNLQJWKHGLVWULFW
FRXUWWRYDFDWHDQGUHHQWHULWVFHUWLILFDWLRQRUGHU2QsXO\        (YHQLIZHFRQFOXGHGWKDWWKHUHLVDVXEVWDQWLDOGLIIHUHQFH
WKHGLVWULFWFRXUWYDFDWHGLWV'HFHPEHURUGHU         RIRSLQLRQWKHLVVXHSUHVHQWHGLQWKLVFDVHLVQRWDFRQWUROOLQJ
$IWHUFRQVLGHULQJDQHZZKHWKHUFHUWLILFDWLRQZRXOGDFKLHYH            OHJDOLVVXH$OHJDOLVVXHLVFRQWUROOLQJLILWFRXOGPDWHULDOO\
WKH HQGV RI  E WKH GLVWULFW FRXUW  UHHQWHUHG LWV    DIIHFWWKHRXWFRPHRIWKHFDVH6HH,QUH%DNHU	*HWW\)LQ
FHUWLILFDWLRQ RUGHU  2Q sXO\   WKH &LW\ ILOHG DQ   6HUYV,QFY1DWjO8QLRQ)LUH,QV&R)G
DSSOLFDWLRQIRUSHUPLVVLRQWRDSSHDO                                 QWK&LU$OHJDOTXHVWLRQRIWKHW\SHHQYLVLRQHG
                                                                      LQ  E KRZHYHU JHQHUDOO\ GRHV QRW LQFOXGH PDWWHUV
                                ,,                                   ZLWKLQWKHGLVFUHWLRQRIWKHWULDOFRXUW6HH:KLWHY1L[
                                                                      )GWK&LU$UXOLQJRQWKHDGPLVVLELOLW\
$ 7LPHOLQHVVRIWKH$SSHDO                                           RIHYLGHQFHLVUHYLHZHGIRUDEXVHRIGLVFUHWLRQ%XU]\QVNLY
                                                                      &RKHQ)GWK&LU$QDOOHJDWLRQRI
  8QGHU86&EDQDSSOLFDWLRQIRUDSSHDOPXVW           DEXVHRIGLVFUHWLRQRQDQHYLGHQWLDU\UXOLQJGRHVQRWFUHDWHD
EHPDGHZLWKLQGD\VDIWHUWKHHQWU\RIWKHGLVWULFWFRXUWjV        OHJDO LVVXH XQGHU  E  6HH sRQHV Y &OLQWRQ  )
FHUWLILFDWLRQRUGHU6HHDOVR)(' 5 $33 3 DDQG       6XSS('$UN
)DLOXUH WR ILOH DQ DSSHDO ZLWKLQ WKH GD\ SHULRG LV D
MXULVGLFWLRQDOGHIHFWWKDWGHSULYHVWKLVFRXUWRIWKHSRZHUWR           )LQDOO\ UHVROXWLRQ RI WKH &LW\jV FKDOOHQJH WR WKH GLVWULFW
HQWHUWDLQDQDSSHDO1HLWKHUWKHGLVWULFWFRXUWQRUWKHFRXUWRI     FRXUWjV HYLGHQWLDU\ UXOLQJ PD\ QRW PDWHULDOO\ DGYDQFH WKH
DSSHDOVFDQH[WHQGWKHGD\SHULRG:RRGVY%DOWLPRUH	           XOWLPDWHWHUPLQDWLRQRIWKHOLWLJDWLRQm:KHQOLWLJDWLRQZLOO
2KLR55&R)GWK&LU6HHDOVR           EHFRQGXFWHGLQVXEVWDQWLDOO\WKHVDPHPDQQHUUHJDUGOHVVRI
)(' 5 $33 3 E                                             >WKHFRXUWjV@GHFLVLRQWKHDSSHDOFDQQRWEHVDLGWRPDWHULDOO\
                                                                      DGYDQFHWKHXOWLPDWHWHUPLQDWLRQRIWKHOLWLJDWLRQl:KLWH
  7KHTXHVWLRQSUHVHQWHGKHUHLVZKHWKHUWKHGLVWULFWFRXUWFDQ       )G DW   8QGHU 'UDELN WKH &LW\ PXVW SUHVHQW
UHVWDUWWKHGD\SHULRGE\YDFDWLQJLWVRULJLQDOFHUWLILFDWLRQ      SUHHQDFWPHQWHYLGHQFHWRVKRZDFRPSHOOLQJVWDWHLQWHUHVW
RUGHU DQG WKHQ UHHQWHULQJ WKH RUGHU  ,Q %DOGZLQ &RXQW\      7KH &LW\ KDV SUHHQDFWPHQW HYLGHQFH  7KXV WKH &LW\ ZLOO
:HOFRPH&HQWHUY%URZQ86WKHGLVWULFW            SXUVXHLWVGHIHQVHLQVXEVWDQWLDOO\WKHVDPHPDQQHU,IWKH
FRXUW KDG UHFHUWLILHG LWV RULJLQDO LQWHUORFXWRU\ RUGHU QLQH    &LW\SUHYDLOVZLWKLWVSUHHQDFWPHQWHYLGHQFHWKHH[FOXVLRQRI
PRQWKVDIWHUWKHRULJLQDOGD\SHULRGKDGH[SLUHGGXHWRWKH        SRVWHQDFWPHQWHYLGHQFHZLOOEHPRRW,ILWGRHVQRWSUHYDLO
DSSHOODQWjVIDLOXUHWRSURSHUO\ILOHLWVSHWLWLRQLQWKHFLUFXLW      WKH&LW\FDQ WKHQ DSSHDORQWKHHYLGHQWLDU\UXOLQJDQGDQ\
FRXUWIRUOHDYHWRDSSHDO7KHPDMRULW\UHDFKHGWKHPHULWVRI        RWKHU LVVXHV WKDW PD\ DULVH EHORZ  7KH DSSOLFDWLRQ IRU
WKHDSSHDOZLWKRXWPHQWLRQLQJWKLVSURFHGXUDOKLVWRU\sXVWLFH       SHUPLVVLRQWRDSSHDOWKHUHIRUHLV'(1,('
6WHYHQV MRLQHG E\ sXVWLFHV %UHQQDQ DQG 0DUVKDOO QRWHG
WKHVHIDFWVDQGVWDWHGWKDWKHZDVmSHUVXDGHGE\WKHYLHZ
VXSSRUWHGE\WKHFRPPHQWDWRUVWKDWLQWHUORFXWRU\DSSHDOVLQ
WKHVHFLUFXPVWDQFHVVKRXOGEHSHUPLWWHGQRWZLWKVWDQGLQJWKH
IDFW WKDW WKLV YLHZ HVVHQWLDOO\ UHQGHUV WKH GD\ WLPH
      ,QUH&LW\RI0HPSKLV                           1R        1R                          ,QUH&LW\RI0HPSKLV         

86&E6HH&DUGZHOOY&KHVDSHDNH	2KLR                   OLPLWDWLRQLIQRWDQXOOLW\HVVHQWLDOO\ZLWKLQWKHGLVFUHWLRQRI
5\&R)GWK&LU5HYLHZXQGHU                 DGLVWULFWFRXUWWRH[WHQGDWZLOOl,GDW
ELVJUDQWHGVSDULQJO\DQGRQO\LQH[FHSWLRQDOFDVHV
.UDXVY%GRI&RXQW\5G&RPPjUV)GWK                   ,Q:RRGV)GDWZHUHIXVHGWRDOORZWKHGLVWULFW
&LU                                                               FRXUW WR YDFDWH DQG ZLWKRXW UHFRQVLGHUDWLRQ UHHQWHU WKH
                                                                          FHUWLILFDWLRQ RUGHU  7KH SHWLWLRQHU LQ :RRGV PLVVHG WKH
  7KH&LW\DUJXHVWKDWDVXEVWDQWLDOJURXQGIRUGLIIHUHQFHRI             RULJLQDO ILOLQJ GHDGOLQH WKURXJK LWV RZQ LQDGYHUWHQFH  :H
RSLQLRQH[LVWV6RPHFLUFXLWVSHUPLWSRVWHQDFWPHQWHYLGHQFH              UHDVRQHGWKDWWKHGLVWULFWFRXUWFRXOGQRWGRLQGLUHFWO\ZKDWLW
WR VXSSOHPHQW SUHHQDFWPHQW HYLGHQFH  6HH (QJjJ                     FRXOG QRW GR GLUHFWO\  :H GHFOLQHG WR GHFLGH KRZHYHU
&RQWUDFWRUV$VVjQY0HWUR'DGH&RXQW\)G               mZKHWKHU IROORZLQJ H[SLUDWLRQ RI WKH WLPH SHULRG IRU WKH
WK&LU7KHGLVWULFWFRXUWUHOLHGRQWKHVHFDVHV            ILOLQJRIDQDSSOLFDWLRQIRUSHUPLVVLRQWRDSSHDOWKH&RXUWRI
WRILQGWKDWWKHUHLVVXEVWDQWLDOGLVDJUHHPHQWDVWRWKHSURSHU           $SSHDOVFRXOGDFTXLUHMXULVGLFWLRQXSRQWKH'LVWULFW&RXUWjV
UROHSOD\HGE\SRVWHQDFWPHQWHYLGHQFH7KLVLVVXHKRZHYHU              UHFRQVLGHUDWLRQRILWVSULRURUGHUDQGWKHWLPHO\ILOLQJRIDQ
DSSHDUVWRKDYHEHHQUHVROYHGLQWKLVFLUFXLW                            DSSOLFDWLRQ DIWHU WKH HQWU\ RI VXFK RUGHU XSRQ
                                                                          UHFRQVLGHUDWLRQl,G
  ,Q$VVRFLDWHG*HQHUDO&RQWUDFWRUVY'UDELN)G
WK &LU  FHUW GHQLHG  86   WKH            2WKHUFLUFXLWVDOORZWKHGLVWULFWFRXUWWRYDFDWHDQGUHHQWHU
GLVWULFWFRXUWIRXQGWKDWWKHSRVWHQDFWPHQWHYLGHQFHWKHVWDWH            D FHUWLILFDWLRQ RUGHU WR SHUPLW D WLPHO\ DSSHDO  7KH )LIWK
VRXJKWWLPHWRJDWKHUZRXOGQRWOLNHO\EHUHOHYDQWWRMXVWLI\D           &LUFXLW FRQFOXGHG WKDW EHFDXVH WKH GLVWULFW FRXUW UHWDLQV
PLQRULW\ SUHIHUHQFH SURJUDP  ,Q GHFLGLQJ WKDW WKH GLVWULFW       MXULVGLFWLRQ XQWLO ILQDO MXGJPHQW LW FDQ UHFRQVLGHU DQ
FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ LQ PDNLQJ WKLV UHOHYDQF\      LQWHUORFXWRU\ RUGHU  7KH )LIWK &LUFXLW WKHUHIRUH SHUPLWV
GHWHUPLQDWLRQZHKHOG                                                   UHFHUWLILFDWLRQ HYHQ LI WKH SHWLWLRQHU WKURXJK LWV RZQ
                                                                          LQDGYHUWHQFH IDLOHG WR WDNH DGYDQWDJH RI WKH RULJLQDO
    >8@QGHU &URVRQ WKH VWDWH PXVW KDYH KDG VXIILFLHQW             FHUWLILFDWLRQ DV ORQJ DV WKH GLVWULFW FRXUW ILQGV WKDW WKH
    HYLGHQWLDU\MXVWLILFDWLRQIRUDUDFLDOO\FRQVFLRXVVWDWXWHLQ         SUHYLRXV MXVWLILFDWLRQ IRU LQWHUORFXWRU\ DSSHDO FRQWLQXHV WR
    DGYDQFH RI LWV SDVVDJH WKH WLPH RI D FKDOOHQJH WR WKH      H[LVW$SDULFLRY6ZDQ/DNH)GWK&LU
    VWDWXWHDWWULDOLVQRWWKHWLPHIRUWKHVWDWHWRXQGHUWDNH         7RKROGRWKHUZLVHZRXOGSUHFOXGHDQLQWHUORFXWRU\
    IDFWILQGLQJ6HH&URVRQ86DW6&W              DSSHDOZKHUHWKHFULWHULDXQGHUEDUHPHWDQGERWK
    UHTXLULQJWKDWJRYHUQPHQWDOHQWLWLHVmPXVWLGHQWLI\WKDW             WKHGLVWULFWFRXUWDQGWKHFRXUWRIDSSHDOVKDYHFRQFOXGHGWKDW
    GLVFULPLQDWLRQZLWKVRPHVSHFLILFLW\EHIRUHWKH\PD\            DQLQWHUORFXWRU\DSSHDOLVDSSURSULDWH,G
    XVHUDFHFRQVFLRXVUHOLHIlHPSKDVLVDGGHG
                                                                            ,Q0DULVROY*LXOLDQL)GG&LU
'UDELN)GDW                                                  WKH6HFRQG&LUFXLWGHFLGHGWKDWUHFHUWLILFDWLRQLVSURSHULILW
                                                                          VHUYHV MXGLFLDO HIILFLHQF\ DQG DGYDQFHV WKH SXUSRVHV RI
  7KH&LW\DUJXHVWKDWWKHFRXUWLQ'UDELNGLGQRWILQGWKDW              E$FFRUG,QUH%HQQ\)GWK&LU
SRVWHQDFWPHQWHYLGHQFHZDVLQDGPLVVLEOH5DWKHUWKH&LW\                DQG1XFOHDU(QJjJ&RY6FRWW)G
DVVHUWV WKDW WKH FRXUW GLG QRW DOORZ WKH VWDWH WR JDWKHU WKH   WK&LU,Q6DIHW\.OHHQ,QF3LQHZRRGY:\FKH
SRVWHQDFWPHQW HYLGHQFH EHFDXVH LW KDG QRW VDWLVILHG WKH            )GWK&LUWKH)RXUWK&LUFXLWIRXQG
UHTXLUHPHQWWKDWWKHUHEHVXIILFLHQWSUHHQDFWPHQWHYLGHQFH               WKDWLQRUGHUWRUHFHUWLI\DGLVWULFWFRXUWPXVWDOVRILQGWKDW
$OWKRXJK'UDELNGLGQRWGLUHFWO\DGGUHVVWKHDGPLVVLELOLW\RI             WKH SHWLWLRQHUjV IDLOXUH WR WLPHO\ ILOH XQGHU WKH RULJLQDO
SRVWHQDFWPHQW HYLGHQFH LW KHOG WKDW D JRYHUQPHQWDO HQWLW\
     ,QUH&LW\RI0HPSKLV                             1R        1R                          ,QUH&LW\RI0HPSKLV         

FHUWLILFDWLRQRUGHUZDVDUHVXOWRIH[FXVDEOHQHJOHFWDQG              ILQDOMXGJPHQWLVHQWHUHG6HH+DOOY&PW\0HQWDO+HDOWK
WKDWWKHUHLVQRSUHMXGLFHWRWKHRWKHUSDUW\LQUHFHUWLI\LQJWKH          &WU)GG&LU
LQWHUORFXWRU\RUGHU
                                                                              ,QWKLVFDVHDVGLVWLQJXLVKHGIURPWKHSHWLWLRQHULQ:RRGV
   ,Q%UDGHQY8QLYHUVLW\RI3LWWVEXUJK)G                WKH&LW\GLGQRWPLVVWKHGD\ILOLQJSHULRGWKURXJKLWVRZQ
G&LUWKH7KLUG&LUFXLWGLVWLQJXLVKHGEHWZHHQWKH                LQDGYHUWHQFH,WZDVWKHKDSOHVVSDUW\LGHQWLILHGLQ%UDGHQ
KDSOHVV SDUW\ ZKR GLG QRW UHFHLYH WLPHO\ QRWLFH DQG WKH           :KHQ QHLWKHU SDUW\ UHFHLYHG WLPHO\ QRWLFH RI WKH ILUVW
QHJOHFWIXO SDUW\ ZKR ZDV VLPSO\ UHPLVV LQ SXUVXLQJ WKH             FHUWLILFDWLRQRUGHUWKHGLVWULFWFRXUWVXDVSRQWHDWWHPSWHGWR
DSSHDO7KHFRXUWGLVFXVVHGWKHHYROXWLRQRI)(' 5 &,9 3              FXUHWKDWHUURUE\H[WHQGLQJWKHILOLQJSHULRG7KH&LW\WKHQ
GDQG)(' 5 $33 3D,GDW5XOHG                ILOHGDSHWLWLRQIRUSHUPLVVLRQWRDSSHDO:KHQWKLV&RXUW
VWDWHVWKDWIDLOXUHWRUHFHLYHQRWLFHRIHQWU\RIDQRUGHUIURP            KHOGWKDWWKHGLVWULFWFRXUWGLGQRWKDYHDXWKRULW\WRH[WHQGWKH
WKHFOHUNRIWKHFRXUWGRHVQRWDIIHFWWKHWLPHIRUDSSHDORU              ILOLQJ SHULRG WKH &LW\ SURPSWO\ DVNHG WKH GLVWULFW FRXUW WR
DXWKRUL]H WKH FRXUW WR UHOLHYH D SDUW\ IRU IDLOXUH WR DSSHDO     YDFDWHDQGUHHQWHUWKHFHUWLILFDWLRQRUGHU7KHPLVVHGILOLQJ
ZLWKLQ WKH WLPH DOORZHG H[FHSW DV SHUPLWWHG E\ $SSHOODWH           GHDGOLQH DQG LPSURSHU DWWHPSW WR H[WHQG WKH ILOLQJ SHULRG
5XOHD7KHSXUSRVHEHKLQG5XOHGZDVWRSURWHFWWKH               ZHUHWKHUHVXOWVRIWKHDFWLRQVRIWKHGLVWULFWFRXUWDQGQRWWKH
ILQDOLW\RIMXGJPHQWV$SSHOODWH5XOHDSHUWDLQVWRDSSHDOV            &LW\$Q\SUHMXGLFHIURPWKHGHOD\DQGEULHILQJRQWKHLQLWLDO
DVRIULJKWIURPILQDOMXGJPHQWVDQGDXWKRUL]HVH[WHQGLQJWKH              SHWLWLRQZHUHFDXVHGE\WKHGLVWULFWFRXUW7KLVVKRXOGQRW
WLPH WR DSSHDO ZKHQ QRWLFH LV QRW UHFHLYHG IURP WKH FOHUN       SUHFOXGH WKH GLVWULFW FRXUW IURP JUDQWLQJ UHOLHI WKURXJK
7KHODQJXDJHLQ$SSHOODWH5XOHDZDVGHULYHGIURPIRUPHU                UHFRQVLGHUDWLRQRIWKHLQWHUORFXWRU\RUGHU
5XOHDZKLFKSHUPLWWHGUHOLHIIRUIDLOXUHWRWLPHO\DSSHDO
IURPERWKILQDOMXGJPHQWDQGQRQILQDORUGHUVDQGMXGJPHQWV                   $OVR DV GLVWLQJXLVKHG IURP :RRGV DIWHU YDFDWLQJ WKH
7KHHOLPLQDWLRQRIWKHUHPHG\IRUIDLOXUHWRUHFHLYHQRWLFH                RULJLQDOFHUWLILFDWLRQRUGHUWKHGLVWULFWFRXUWUHFRQVLGHUHGDQG
IURP WKH FOHUN IRU QRQILQDO RUGHUV DQG MXGJPHQWV ZDV               VSHFLILFDOO\ IRXQG WKDW FHUWLILFDWLRQ ZDV VWLOO SURSHU XQGHU
VHHPLQJO\ WKH UHVXOW RI DQ RYHUVLJKW  7KH 7KLUG &LUFXLW          E:HDJUHHZLWKWKHRWKHUFLUFXLWVWKDWLWLVZLWKLQ
FRQFOXGHGWKDW5XOHGVKRXOGmQRWEHUHDGZRRGHQO\VRDV               WKH EURDG SRZHU RI WKH GLVWULFW FRXUW WR UHFRQVLGHU DQ
WR SUHFOXGH VXFK UHOLHI LQ WKH LQWHUORFXWRU\ VLWXDWLRQ             LQWHUORFXWRU\RUGHUSDUWLFXODUO\WRDYRLGDQLQMXVWLFHWRDSDUW\
SDUWLFXODUO\JLYHQLWVOLPLWHGSXUSRVHnWRSURWHFWWKHILQDOLW\             FDXVHGE\WKHLQDGYHUWHQWDFWVRIWKHGLVWULFWFRXUW:HILQG
RI MXGJPHQWVl  ,G DW   7KH LQWHUHVW LQ WKH ILQDOLW\ RI   WKHUHIRUH WKDW ZH KDYH MXULVGLFWLRQ WR FRQVLGHU WKH &LW\jV
MXGJPHQWV ZRXOG QRW EH DIIHFWHG E\ UHFRQVLGHUDWLRQ DQG              DSSOLFDWLRQIRUSHUPLVVLRQWRDSSHDO,WLVQRWQHFHVVDU\DQG
UHHQWU\RIDQLQWHUORFXWRU\RUGHU7KH7KLUG&LUFXLWVWDWHG              ZHGHFOLQHWRGHFLGHZKHWKHUDGLVWULFWFRXUWFDQUHFHUWLI\DQ
m>:@HGRQRWUHDG5XOHGDQGLWVSUHFXUVRUVWRIRUHVWDOO               LQWHUORFXWRU\ RUGHU ZKHQ WKH DSSHOODQW PLVVHV WKH RULJLQDO
WKH GLVWULFW FRXUW IURP JUDQWLQJ UHOLHI EHFDXVH RI LWV RZQ        ILOLQJSHULRGWKURXJKLWVRZQLQDGYHUWHQFH
IDLOXUHWRSURYLGHDGHTXDWHQRWLFHWRWKHGHIHQGDQWV,WZDVLQ
UHVSRQVHWRGHIHQGDQWVjSHWLWLRQWKDWWKHGLVWULFWFRXUWHQWHUHG           % 5HTXLUHPHQWVIRU,QWHUORFXWRU\$SSHDO
WKHFHUWLILFDWLRQLQWKHILUVWLQVWDQFH$VDUHVXOWLWZDVQRW
XQUHDVRQDEOHIRUWKHGHIHQGDQWVWRDZDLWQRWLFHRIDQ\DFWLRQ                7KLVFRXUWLQLWVGLVFUHWLRQPD\SHUPLWDQDSSHDOWREHWDNHQ
ZKLFKKDGEHHQWDNHQRQWKHLUSHWLWLRQnHVSHFLDOO\VLQFHQR                 IURPDQRUGHUFHUWLILHGIRULQWHUORFXWRU\DSSHDOLIWKHRUGHU
SDUW\KDVEHHQSUHMXGLFHGE\WKHUHHQWU\RIWKHFHUWLILFDWLRQ              LQYROYHV D FRQWUROOLQJ TXHVWLRQ RI ODZ  D VXEVWDQWLDO
RUGHUl,GDW7KH7KLUG&LUFXLWEDVHGLWVUXOLQJRQ             JURXQG IRU GLIIHUHQFH RI RSLQLRQ H[LVWV UHJDUGLQJ WKH
WKHEURDGSRZHUWKDWDGLVWULFWFRXUWKDVRYHUDFDVHEHIRUHD             FRUUHFWQHVVRIWKHGHFLVLRQDQGDQLPPHGLDWHDSSHDOPD\
                                                                           PDWHULDOO\DGYDQFHWKHXOWLPDWHWHUPLQDWLRQRIWKHOLWLJDWLRQ