Court Opinion

ID: 2970036
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:02:51.340062+00
Date Added: 2024-06-11T12:40:40.937524
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

 0,&+$(/ ' 1,+,6(5              ;
          3ODLQWLII$SSHOODQW     
                                   
                                     1R
           Y                      
                                    !
                                   
 2+,2 (19,5210(17$/                
 3527(&7,21 $*(1&<                
          'HIHQGDQW$SSHOOHH 
                                   
                                   
                                   
                                  1
      $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
     IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV
    1RnsDPHV/*UDKDP'LVWULFWsXGJH
               $UJXHG2FWREHU
          'HFLGHGDQG)LOHG2FWREHU
 %HIRUH0$57,1&KLHIsXGJH68+5+(,15,&+DQG
               6,/(5&LUFXLWsXGJHV
                  BBBBBBBBBBBBBBBBB
                       &2816(/
$5*8('/RXLV$sDFREV&ROXPEXV2KLRIRU$SSHOODQW
6WHSKHQ 3 &DUQH\ 2)),&( 2) 7+( $77251(<
*(1(5$/2)2+,2&ROXPEXV2KLRIRU$SSHOOHH6HWK

                            
     1LKLVHUY2+(QYLURQPHQWDO                    1R
      3URWHFWLRQ$JHQF\

0 *DODQWHU 81,7(' 67$7(6 '(3$570(17 2)
s867,&(&,9,/5,*+76',9,6,21:DVKLQJWRQ'&IRU
,QWHUYHQRU21%5,()/RXLV$sDFREV&ROXPEXV2KLR
sRKQ60DUVKDOO&ROXPEXV2KLRIRU$SSHOODQWsDFN:
'HFNHU 2)),&( 2) 7+( $77251(< *(1(5$/
(03/2<0(17/$:6(&7,21&ROXPEXV2KLRsHIIUH\
66XWWRQs21(6'$<5($9,6	32*8(&ROXPEXV
2KLRIRU$SSHOOHH0HUO+:D\PDQ&ROXPEXV2KLRIRU
$PLFXV &XULDH  6HWK 0 *DODQWHU 81,7(' 67$7(6
'(3$570(172)s867,&(&,9,/5,*+76',9,6,21
:DVKLQJWRQ'&IRU,QWHUYHQRU
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  %2<&( ) 0$57,1 s5 &KLHI sXGJH  0LFKDHO '
1LKLVHUDQHPSOR\HHRIWKH2KLR(QYLURQPHQWDO3URWHFWLRQ
$JHQF\ VXHGKLVHPSOR\HUXQGHU7LWOH,RIWKH$PHULFDQV
ZLWK'LVDELOLWLHV$FWDQG6HFWLRQRIWKH5HKDELOLWDWLRQ
$FW7KH$JHQF\ILOHGDPRWLRQWRGLVPLVVDUJXLQJWKDWWKH
$FWV ZHUH XQFRQVWLWXWLRQDO DV DSSOLHG WR WKH VWDWHV  7KH
GLVWULFW FRXUW JUDQWHG WKH $JHQF\jV PRWLRQ DQG 1LKLVHU
DSSHDOV  )RU WKH IROORZLQJ UHDVRQV ZH DIILUP WKH GLVWULFW
FRXUWjVGLVPLVVDORI1LKLVHUjV$PHULFDQVZLWK'LVDELOLWLHV$FW
FODLP EXW ZH UHYHUVH WKH GLVWULFW FRXUWjV GLVPLVVDO RI KLV
FODLPEURXJKWXQGHUWKH5HKDELOLWDWLRQ$FW
                                 ,
   1LKLVHU EHJDQ ZRUNLQJ IRU WKH 2KLR (QYLURQPHQWDO
3URWHFWLRQ $JHQF\ LQ   ,Q $SULO  KH LQMXUHG KLV
EDFNDQGZDVGLDJQRVHGZLWKOXPEDUGLVFGHUDQJHPHQWZLWK
ULJKWVFLDWLFD)URPWRWKH$JHQF\SURYLGHGVRPH
DFFRPPRGDWLRQIRU1LKLVHUDQGKHZDVDEOHWRSHUIRUPKLV
MRE GXWLHV  ,Q 'HFHPEHU  1LKLVHU VXHG WKH $JHQF\
DOOHJLQJWKDWLQWKH$JHQF\FKDQJHGKLVMREGXWLHVWR
UHTXLUHSURORQJHGSHULRGVRIGULYLQJ1LKLVHUFODLPHGWKDW
ZKHQ KH DGYLVHG WKH $JHQF\ WKDW KLV EDFN FRQGLWLRQ
1R                 1LKLVHUY2+(QYLURQPHQWDO           
                                       3URWHFWLRQ$JHQF\

SUHYHQWHG KLP IURP GULYLQJ ORQJ GLVWDQFHV WKH $JHQF\
HVVHQWLDOO\IRUFHGKLPWRWDNHGLVDELOLW\UHWLUHPHQWLQYLRODWLRQ
RIWKH$PHULFDQVZLWK'LVDELOLWLHV$FWDQGWKH5HKDELOLWDWLRQ
$FW  2Q $XJXVW   WKH GLVWULFW FRXUW JUDQWHG WKH
$JHQF\jV PRWLRQ WR GLVPLVV IRU ODFN RI MXULVGLFWLRQ
FRQFOXGLQJ WKDW WKH (OHYHQWK $PHQGPHQW SUHYHQWHG WKH
$JHQF\IURPEHLQJVXHGIRUGDPDJHVXQGHUHLWKHUDFW
                                ,,
  :H UHYLHZ GH QRYR D GLVWULFW FRXUW
V GHFLVLRQ WR JUDQW D
PRWLRQ WR GLVPLVV IRU ODFN RI VXEMHFW PDWWHU MXULVGLFWLRQ
sRHOVRQY8QLWHG6WDWHV)GWK&LU
   7KH(OHYHQWK$PHQGPHQWSURYLGHVm7KHsXGLFLDOSRZHURI
WKH8QLWHG6WDWHVVKDOOQRWEHFRQVWUXHGWRH[WHQGWRDQ\VXLW
LQODZRUHTXLW\FRPPHQFHGRUSURVHFXWHGDJDLQVWRQHRIWKH
8QLWHG6WDWHVE\&LWL]HQVRIDQRWKHU6WDWHRUE\&LWL]HQVRU
6XEMHFWVRIDQ\)RUHLJQ6WDWHl7KH866XSUHPH&RXUW
FRQVWUXHG WKLV $PHQGPHQW WR JUDQW D 6WDWH VRYHUHLJQ
LPPXQLW\DJDLQVWVXLWEURXJKWE\SULYDWHFLWL]HQVRIDQ\VWDWH
6HH+DQVY/RXLVLDQD866WDWHVFDQORVHRU
IRUHJR WKLV LPPXQLW\ WKURXJK ZDLYHU RU FRQJUHVVLRQDO
DEURJDWLRQ6HH/DZVRQY6KHOE\&RXQW\)G
 WK &LU  GLVFXVVLQJ H[FHSWLRQV WR (OHYHQWK
$PHQGPHQWLPPXQLW\
                                $
   $IWHU1LKLVHUjVDSSHDOWKH866XSUHPH&RXUWKHOGWKDW
WKH (OHYHQWK $PHQGPHQW SURKLELWV VWDWH HPSOR\HHV IURP
VXLQJWKHLUHPSOR\HUVIRUPRQH\GDPDJHVXQGHU7LWOH,RIWKH
$PHULFDQVZLWK'LVDELOLWLHV$FW7UXVWHHVRIWKH8QLYRI$OD
Y*DUUHWW86$VDVWDWHHPSOR\HHVXLQJ
KLV HPSOR\HU XQGHU 7LWOH , 1LKLVHUjV $PHULFDQV ZLWK
'LVDELOLWLHV$FWFODLPLVJRYHUQHGE\*DUUHWW7KHUHIRUHZH
DIILUPWKHGLVWULFWFRXUWjVGLVPLVVDORI1LKLVHUjVFODLPDJDLQVW
WKH $JHQF\IRUYLRODWLRQVRI7LWOH,RIWKH$PHULFDQVZLWK
'LVDELOLWLHV$FW
       1LKLVHUY2+(QYLURQPHQWDO                     1R        1R                 1LKLVHUY2+(QYLURQPHQWDO           
        3URWHFWLRQ$JHQF\                                                                                         3URWHFWLRQ$JHQF\

                                  %                                         m,QGHFLGLQJZKHWKHUD6WDWHKDVZDLYHGLWVFRQVWLWXWLRQDO
                                                                           SURWHFWLRQ XQGHU WKH (OHYHQWK $PHQGPHQW ZH ZLOO ILQG
   1LKLVHU DQG WKH 8QLWHG 6WDWHV DV LQWHUYHQRU SUHVHQW WZR         ZDLYHURQO\ZKHUHVWDWHGµE\WKHPRVWH[SUHVVODQJXDJHRUE\
SRVVLEOHPHWKRGVIRU5HKDELOLWDWLRQ$FWFODLPVDJDLQVW6WDWHV              VXFKRYHUZKHOPLQJLPSOLFDWLRQVIURPWKHWH[WDV>ZLOO@OHDYH
WRSURFHHGQRWZLWKVWDQGLQJ(OHYHQWK$PHQGPHQWLPPXQLW\                    QRURRPIRUDQ\RWKHUUHDVRQDEOHFRQVWUXFWLRQjl(GHOPDQY
 SXUVXDQW WR &RQJUHVVjV VSHQGLQJ SRZHU ZDLYHU YLD WKH           sRUGDQ86TXRWLQJ0XUUD\Y:LOVRQ
IHGHUDO IXQGV WLHG WR WKH 5HKDELOLWDWLRQ $FW DQG                'LVWLOOLQJ&R86:HUHFRJQL]HWKDW
FRQJUHVVLRQDO DEURJDWLRQ SXUVXDQW WR 6HFWLRQ )LYH RI WKH            PHUHSDUWLFLSDWLRQLQDIHGHUDOSURJUDPLVQRWVXIILFLHQWWR
)RXUWHHQWK$PHQGPHQW7KH\DUJXHWKDWWKH5HKDELOLWDWLRQ                  ZDLYHLPPXQLW\VHH(GHOPDQ86DWEXWZHILQG
$FW$PHQGPHQWVRISURYLGHWKHQHFHVVDU\ODQJXDJHWR                   WKDW6HFWLRQGLVmWKHPRVWH[SUHVVODQJXDJHlRIZDLYHU
DYRLG (OHYHQWK $PHQGPHQW LPPXQLW\ XQGHU HLWKHU WKHRU\               RI(OHYHQWK$PHQGPHQWLPPXQLW\ $FFRUGLQJO\ZHKROG
:HZLOOH[DPLQHWKHLUZDLYHUDUJXPHQWILUVW                               WKDW D SODLQWLII PD\ VXH D 6WDWH XQGHU 6HFWLRQ  RI WKH
                                                                           5HKDELOLWDWLRQ $FW DQG ZH UHYHUVH WKH GLVWULFW FRXUWjV
                                                                         GLVPLVVDORI1LKLVHUjV5HKDELOLWDWLRQ$FWFODLP
   7KH5HKDELOLWDWLRQ$FWKDVDORQJKLVWRU\RIVFUXWLQ\XQGHU                                              
WKH(OHYHQWK$PHQGPHQW,QWKH866XSUHPH&RXUW
KHOGWKDWWKH$FWjVLQLWLDOYHUVLRQIHOOmIDUVKRUWRIPDQLIHVWLQJ           %HFDXVH ZH ILQG WKDW 6WDWHV ZDLYH WKHLU (OHYHQWK
D FOHDU LQWHQW WR FRQGLWLRQ SDUWLFLSDWLRQ LQ WKH SURJUDPV          $PHQGPHQW LPPXQLW\ ZLWK UHJDUG WR 5HKDELOLWDWLRQ $FW
IXQGHG XQGHU WKH $FW RQ D 6WDWHjV FRQVHQW WR ZDLYH LWV           FODLPVZKHQWKH\DFFHSWIHGHUDOIXQGVZHQHHGQRWDGGUHVV
FRQVWLWXWLRQDOLPPXQLW\l$WDVFDGHUR6WDWH+RVSY6FDQORQ              1LKLVHUjVVHFRQGDUJXPHQWWKDW&RQJUHVVYDOLGO\DEURJDWHG
867KHQH[W\HDU&RQJUHVVDGRSWHG                 WKH6WDWHVj(OHYHQWK$PHQGPHQWLPPXQLW\ZKHQLWHQDFWHG
WKH5HKDELOLWDWLRQ$FW$PHQGPHQWVZKLFKH[SUHVVO\SURYLGH                WKH5HKDELOLWDWLRQ$FW:HGRQRWHWKDWWKHWZRFLUFXLWVWR
m$6WDWHVKDOOQRWEHLPPXQHXQGHUWKH(OHYHQWK$PHQGPHQW                  H[DPLQH WKH TXHVWLRQ KDYH IRXQG 6HFWLRQ G WR
RIWKH&RQVWLWXWLRQRIWKH8QLWHG6WDWHVIURPVXLWLQ)HGHUDO              FRQVWLWXWHDYDOLGDEURJDWLRQ6HH.LOFXOOHQY1HZ<RUN6WDWH
FRXUWIRUDYLRODWLRQRIVHFWLRQRIWKH5HKDELOLWDWLRQ$FW             'HSjW RI /DERU  )G  G &LU  &ODUN Y
RIl86&G7KH866XSUHPH                  &DOLIRUQLD)GWK&LU
&RXUWDVZHOODVHYHU\FLUFXLWFRXUWWRDGGUHVVWKHTXHVWLRQ
KDVUHFRJQL]HG6HFWLRQGDVDYDOLGDQGXQDPELJXRXV                                                   ,,,
ZDLYHU6HH/DQHY3HQD86VHHDOVR
sLP&Y8QLWHG6WDWHV)GWK&LUHQ                   )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUWjV
EDQF 6WDQOH\ Y /LWVFKHU  )G  WK &LU          GLVPLVVDORI1LKLVHUjV$PHULFDQVZLWK'LVDELOLWLHV$FWFODLP
&ODUNY&DOLIRUQLD)GWK&LU                       :H 5(9(56( WKH GLVWULFW FRXUWjV GLVPLVVDO RI 1LKLVHUjV
                                                                           5HKDELOLWDWLRQ $FW FODLP DQG 5(0$1' IRU IXUWKHU
                                                                           SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ
    
      6HFWLRQ G DSSOLHV WR 7LWOH ,; RI WKH &LYLO 5LJKWV $FW LQ
DGGLWLRQ WR WKH 5HKDELOLWDWLRQ $FW 7KH RQO\ WZR FLUFXLWV WR DGGUHVV WKH
TXHVWLRQ KDYH IRXQG 6HFWLRQ G WR FRQVWLWXWH DQ XQDPELJXRXV
ZDLYHU RI (OHYHQWK $PHQGPHQW LPPXQLW\ LQ VXLWV EURXJKW XQGHU 7LWOH ,;
6HH 3HGHUVRQ Y /RXLVLDQD 6WDWH 8QLY  )G  WK &LU        /LWPDQ Y *HRUJH 0DVRQ 8QLY    )G  WK &LU 