Court Opinion

ID: 2970344
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:10:13.826931+00
Date Added: 2024-06-11T11:43:29.374463
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

 $/)2162 0$&,$6 s5             ;
          3HWLWLRQHU$SSHOODQW 
                                   
                                      1R
            Y                     
                                    !
                                   
 s2+1 0$.2:6.,                    
          5HVSRQGHQW$SSHOOHH 
                                  1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
    IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW$QQ$UERU
     1Rn*HRUJH&6WHHK'LVWULFWsXGJH
                       $UJXHG0D\
               'HFLGHGDQG)LOHG0D\
%HIRUH68+5+(,15,&+DQG*,/0$1&LUFXLWsXGJHV
              +22''LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('  'HEUD $ *XWLHUUH] 67$7( $33(//$7(
'()(1'(5 2)),&( 'HWURLW 0LFKLJDQ IRU $SSHOODQW
sDQHW $ 9DQ &OHYH 2)),&( 2) 7+( $77251(<

    
     7KH +RQRUDEOH sRVHSK 0 +RRG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
(DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ

                                   
     0DFLDVY0DNRZVNL                                1R        1R                         0DFLDVY0DNRZVNL        

*(1(5$//DQVLQJ0LFKLJDQIRU$SSHOOHH21%5,()                       REMHFWLYHO\ XQUHDVRQDEOH  :H WKHUHIRUH FRQFOXGH WKDW
9DOHULH 5 1HZPDQ 67$7( $33(//$7( '()(1'(5                           0DFLDVjV SHWLWLRQ IRU D ZULW RI KDEHDV FRUSXV VKRXOG EH
2)),&( 'HWURLW 0LFKLJDQ IRU $SSHOODQW  sDQHW $ 9DQ            GHQLHG
&OHYH2)),&(2)7+($77251(<*(1(5$//DQVLQJ
0LFKLJDQIRU$SSHOOHH                                                                        ,,,&21&/86,21
                       BBBBBBBBBBBBBBBBB                                     )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH
                                                                           MXGJPHQWRIWKHGLVWULFWFRXUW
                           23,1,21
                       BBBBBBBBBBBBBBBBB
   521$/'/((*,/0$1&LUFXLWsXGJH$OIRQVR0DFLDV
sU ZDV FRQYLFWHG LQ VWDWH FRXUW RI DVVDXOW ZLWK LQWHQW WR
FRPPLW PXUGHU DQG IRU SRVVHVVLRQ RI D ILUHDUP  +H ZDV
VHQWHQFHGWREHWZHHQDQG\HDUVLQSULVRQIRUWKHDVVDXOW
DQGDGGLWLRQDO\HDUVIRUXQODZIXOO\SRVVHVVLQJWKHILUHDUP
$IWHU KLV FRQYLFWLRQ DQG VHQWHQFH ZHUH DIILUPHG RQ GLUHFW
DSSHDO0DFLDVILOHGDSHWLWLRQIRUDZULWRIKDEHDVFRUSXVLQ
WKH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH (DVWHUQ 'LVWULFW RI
0LFKLJDQFODLPLQJWKDWKLVGXHSURFHVVULJKWVZHUHYLRODWHG
E\SURVHFXWRULDOPLVFRQGXFW7KHGLVWULFWFRXUWGHQLHGWKH
ZULW  )RU WKH UHDVRQV VHW IRUWK EHORZ ZH $)),50 WKH
MXGJPHQWRIWKHGLVWULFWFRXUW
                      ,%$&.*5281'
$ )DFWXDOEDFNJURXQG
   $W DSSUR[LPDWHO\  DP RQ sDQXDU\  
&KULVWRSKHU/D6DOOHSDUNHGKLVFDUDWDJDVVWDWLRQLQ3RQWLDF
0LFKLJDQ  +H KDG IRXU SDVVHQJHUV ZLWK KLP LQ WKH FDU
/D6DOOHH[LWHGWRVSHDNWRKLVJLUOIULHQG$QJHOD*LJOLRZKR
ZDVDSDVVHQJHULQDFDUWKDWZDVSDUNHGLQIURQWRIKLP$V
KHZDVVWDQGLQJQH[WWRWKLVRWKHUFDUDWKLUGFDUSXOOHGLQWR
WKH JDV VWDWLRQ  $W WKLV SRLQW /D6DOOH UHWXUQHG WR KLV FDU
KDYLQJEHHQSURPSWHGWRGRVRE\RQHKLVIULHQGV+HWKHQ
ORRNHG RXW RI KLV GULYHUjV VLGH ZLQGRZ DQG VDZ WKDW DQ
LQGLYLGXDOZDVSRLQWLQJDJXQDWKLP7KHJXQPDQSXOOHGWKH
WULJJHUEXWWKHJXQPLVILUHG6KRUWO\WKHUHDIWHUDVKRWZDV
ILUHG LQWR WKH GULYHUjV VLGH RI /D6DOOHjV FDU  $V /D6DOOH
DWWHPSWHGWRHVFDSHWKHJXQPDQILUHGDVHFRQGJXQVKRWLQWR
    0DFLDVY0DNRZVNL                               1R       1R                           0DFLDVY0DNRZVNL          

   7KLUG ZH PXVW GHFLGH mZKHWKHU WKH UHPDUNV ZHUH                WKHFDUjVURRI$WKLUGVKRWKLWWKHFDUDV/D6DOOHGURYHDZD\
GHOLEHUDWHO\RUDFFLGHQWDOO\PDGHl,G5XHODVZDVQDPHGDV            IURPWKHJDVVWDWLRQ)RUWXQDWHO\QRRQHZDVLQMXUHGE\WKH
D ZLWQHVV LQ GHIHQGDQWjV QRWLFH RI DOLEL GDWHG WZR PRQWKV       JXQILUH
EHIRUHWKHWULDOEHJDQ,QUHVSRQVHWKHSURVHFXWRUKDGILOHGDQ
DOLEL UHEXWWDO QRWLFH DSSUR[LPDWHO\ ILYH ZHHNV EHIRUH WULDO         /D6DOOHRULJLQDOO\LGHQWLILHGWKHVKRRWHUDVD+LVSDQLFPDOH
LQGLFDWLQJWKDWVKHZDVDZDUHWKDW%UHQGD5XHODVZRXOGEH                NQRZQWRKLPE\WKHQLFNQDPHm%RQWD\lZLWKZKRPKHKDG
FDOOHG E\ WKH GHIHQVH DV DQ DOLEL ZLWQHVV  *LYHQ WKDW WKH    KDGDSK\VLFDOFRQIURQWDWLRQWZRPRQWKVHDUOLHU2QsDQXDU\
SURVHFXWRU NQHZ WKDW 5XHODV KDG FRPH IRUZDUG ZHOO LQ             /D6DOOHLQIRUPHGWKHSROLFHWKDWWKHLQGLYLGXDOKH
DGYDQFH RI WULDO WKH VWDWHPHQW GXULQJ UHEXWWDO FORVLQJ           NQHZDVm%RQWD\lZDVQDPHG$OIRQVR0DFLDVsU/D6DOOH
DUJXPHQW WKDW mVKH FRPHV IRUWK WKH GD\ RI WULDO RU VKRUWO\     WHVWLILHGWKDWDQLQGLYLGXDOZLWKZKRPKHZRUNVKDGWROGKLP
EHIRUHlZDVDOPRVWFHUWDLQO\DGHOLEHUDWHPLVVWDWHPHQWRIIDFW          WKHDOOHJHGVKRRWHUjVSURSHUQDPH
  )RXUWKZHPXVWFRQVLGHUmZKHWKHUWKHHYLGHQFHDJDLQVWWKH                2Q sDQXDU\   GXULQJ D SKRWR OLQHXS /D6DOOH
GHIHQGDQW ZDV VWURQJl ,G  6HYHQ H\HZLWQHVVHV LGHQWLILHG        LGHQWLILHG0DFLDVDVWKHLQGLYLGXDOZKRKDGILUHGWKHJXQVKRWV
0DFLDVDVWKHDVVDLODQWZKRDWWHPSWHGWRVKRRW/D6DOOH7KHLU           DWKLP$WWULDOVL[RWKHUH\HZLWQHVVHVDOVRLGHQWLILHG0DFLDV
WHVWLPRQ\LVFUHGLEOHEHFDXVHLWZDVEDVHGXSRQDFORVHUDQJH            DVWKHVKRRWHU0DFLDVKRZHYHUSUHVHQWHGHYLGHQFHWKDWKH
HQFRXQWHU ZLWK WKH VKRRWHU  0RUHRYHU WKUHH RI WKH              ZDVQRWDWWKHJDVVWDWLRQDWWKHWLPHWKHVKRRWLQJRFFXUUHG
H\HZLWQHVVHVLQFOXGLQJWKHLQWHQGHGYLFWLPNQHZ0DFLDV                6SHFLILFDOO\$QJHOD0RUDQWHVWLILHGWKDWVKHZDVZLWK0DFLDV
$OWKRXJK WKH SURVHFXWLRQ GLG QRW SUHVHQW DQ\ SK\VLFDO             XQWLODSSUR[LPDWHO\DPWKDWPRUQLQJDWZKLFKWLPHVKH
HYLGHQFHWRSURYHWKDW0DFLDVZDVWKHVKRRWHUDQG0DFLDV                GURSSHG KLP RII DW WKH DSDUWPHQW ZKHUH KH ZDV VWD\LQJ
GLGKDYHDQDOLELWKHWHVWLPRQ\DJDLQVWKLPZDVVWURQJ7KLV           sHQQLIHU 0RMLFD D UHVLGHQW RI WKH DSDUWPHQW WHVWLILHG WKDW
IDFWRUWKHUHIRUHZHLJKVDJDLQVW0DFLDVjVFODLP                          0DFLDV ZDV VWLOO WKHUH ZKHQ VKH ZHQW WR VOHHS DW
                                                                         DSSUR[LPDWHO\DP)LQDOO\%UHQGD5XHODV0RMLFDjV
   ,Q VXP WZR RI WKH IRXU IDFWRUV RI WKH &DUUROO WHVW WKH   URRPPDWHWHVWLILHGWKDWVKHZDWFKHGWHOHYLVLRQPRYLHVZLWK
VWDWHPHQWV ZHUH PLVOHDGLQJ DQG ZHUH GHOLEHUDWH ZHLJK LQ          0DFLDVm>I@RUDERXWWZRRUWKUHHKRXUVlDIWHU0DFLDVDUULYHG
IDYRURI0DFLDVjVFODLPWKDWWKHSURVHFXWRUjVUHEXWWDOFORVLQJ           ZKLFKZRXOGRYHUODSWKHLQFLGHQWDWWKHJDVVWDWLRQ
DUJXPHQW YLRODWHG KLV GXH SURFHVV ULJKWV DQG WZR ZHLJK
DJDLQVW KLV FODLP WKH VWDWHPHQWV ZHUH LVRODWHG DQG WKH          % 3URFHGXUDOEDFNJURXQG
HYLGHQFHDJDLQVWKLPZDVVWURQJ,IWKLVFRXUWZHUHKHDULQJ
WKHFDVHRQGLUHFWDSSHDOZHPLJKWKDYHFRQFOXGHGWKDWWKH                2QsXQHDMXU\FRQYLFWHG0DFLDVRIDVVDXOWZLWK
SURVHFXWRUjVFRPPHQWVYLRODWHG0DFLDVjVGXHSURFHVVULJKWV              LQWHQWWRFRPPLWPXUGHULQYLRODWLRQRI0&/DQG
%XWWKLVFDVHLVEHIRUHXVRQDSHWLWLRQIRUDZULWRIKDEHDV            IRUXQODZIXOO\SRVVHVVLQJDILUHDUPLQYLRODWLRQRI0&/
FRUSXV  6R WKH UHOHYDQW TXHVWLRQ LV QRW ZKHWKHU WKH VWDWH     E2QDSSHDOWKH0LFKLJDQ&RXUWRI$SSHDOVLQLWLDOO\
FRXUWjV GHFLVLRQ ZDV ZURQJ EXW ZKHWKHU LW ZDV DQ                FRQFOXGHG WKDW WKH SURVHFXWRU KDG LPSURSHUO\ DWWDFNHG WKH
XQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHGIHGHUDOODZ             FUHGLELOLW\ RI 0DFLDVjV NH\ DOLEL ZLWQHVV %UHQGD 5XHODV
86&G:LOOLDPVY7D\ORU86                mZLWK DUJXPHQW XQVXSSRUWHG E\ WKH HYLGHQFH LQFOXGLQJ
   *LYHQ WKDW WKH SURVHFXWRUjV VWDWHPHQWV ZHUH         DUJXPHQWWKDWZDVIDOVHl$IWHUQRWLQJWKDW0DFLDVjVGHIHQVH
LVRODWHG DQG WKH HYLGHQFH DJDLQVW 0DFLDV ZDV VWURQJ WKH         UHOLHG RQ 5XHODVjV FUHGLELOLW\ DQG WKDW WKH ZHLJKW RI WKH
GHWHUPLQDWLRQ E\ WKH 0LFKLJDQ &RXUW RI $SSHDOV WKDW WKH          HYLGHQFH DJDLQVW 0DFLDV ZDV QRW RYHUZKHOPLQJ EHFDXVH
FRPPHQWVGLGQRWYLRODWH0DFLDVjVGXHSURFHVVULJKWVZDVQRW             m>W@KHUHZDVVLJQLILFDQWFRQWUDGLFWLRQlLQWKHDFFRXQWVRIWKH
                                                                         H\HZLWQHVVHVWKH&RXUWRI$SSHDOVGHWHUPLQHGWKDWWKHmHUURU
     0DFLDVY0DNRZVNL                             1R       1R                             0DFLDVY0DNRZVNL           

ZDVQRWKDUPOHVVEH\RQGDUHDVRQDEOHGRXEWl,WWKHUHIRUH               (YLGHQFH LQ WKH UHFRUG WKHUHIRUH GRHV QRW VXSSRUW WKH
UHYHUVHG 0DFLDVjV FRQYLFWLRQ DQG UHPDQGHG WKH FDVH IRU D       SURVHFXWRUjV UHEXWWDO FORVLQJ DUJXPHQW  ,Q IDFW WKH
QHZWULDO                                                           SURVHFXWRUjVVWDWHPHQWVUHJDUGLQJZKHQ5XHODVFDPHIRUZDUG
                                                                       ZLWK KHU DOLEL LQIRUPDWLRQ LV GLUHFWO\ FRQWUDGLFWHG E\ VXFK
   2Q DSSHDO E\ WKH VWDWH WKH 0LFKLJDQ 6XSUHPH &RXUW          HYLGHQFH  $V WKH RULJLQDO SDQHO RI WKH 0LFKLJDQ &RXUW RI
UHPDQGHGWKHFDVHWRWKH&RXUWRI$SSHDOVIRUUHFRQVLGHUDWLRQ          $SSHDOV SRLQWHG RXW 5XHODV mZDV QDPHG LQ GHIHQGDQWjV
LQOLJKWRI3HRSOHY0DWHR0LFK$OWKRXJK           QRWLFHRIDOLELGDWHG$SULODQGILOHGLQWKHFRXQW\
WKH 0LFKLJDQ &RXUW RI $SSHDOV FRQFOXGHG WKDW 0DWHR ZDV         FOHUNjVRIILFHRQ0D\lDSSUR[LPDWHO\WZRPRQWKV
LUUHOHYDQW WR 0DFLDVjV DSSHDO D SDUWLDOO\ QHZ SDQHO RI WKH   EHIRUH5XHODVjVWULDOWHVWLPRQ\ZDVWDNHQRQsXQH
FRXUWGHFLGHGWRUHYHUVHWKHHDUOLHUUXOLQJE\WKHSULRUSDQHO        0DFLDVjVFRXQVHOXQIRUWXQDWHO\IDLOHGWRSRLQWWKLVNH\IDFW
7KH0LFKLJDQ&RXUWRI$SSHDOVH[SODLQHGWKDWLWZDVmQRZ               RXW WR WKH VWDWH WULDO FRXUW  ,Q VXP ZH FRQFOXGH WKDW WKH
FRQYLQFHGWKDWWKHSURVHFXWRUjVDUJXPHQWGLGQRWFRQWDLQIDOVH         SURVHFXWRUjV VWDWHPHQWV UHJDUGLQJ 5XHODVjV WHVWLPRQ\ ZHUH
RU PLVOHDGLQJ VWDWHPHQWV RI IDFW EXW ZDV D OHJLWLPDWH         EDVHGXSRQSXUSRUWHGIDFWVWKDWZHUHQRWLQHYLGHQFHDQGZHUH
DUJXPHQW EDVHG RQ OHJLWLPDWH LQIHUHQFHV GUDZQ IURP               WKHUHIRUHLPSURSHU
>5XHODVjV@WHVWLPRQ\l2QHMXGJHGLVVHQWHGSRLQWLQJRXWWKDW
m5XHODVZDVOLVWHGDVDQDOLELZLWQHVVLQGHIHQGDQWjVQRWLFHRI           %HFDXVH ZH KDYH FRQFOXGHG WKDW WKH SURVHFXWRUjV
DOLELGDWHG$SULOWZRPRQWKVEHIRUHWULDODQGWKH          VWDWHPHQWVZHUHLPSURSHUZHPXVWQRZDSSO\WKHIRXUIDFWRUV
SURVHFXWRUjVVWDWHPHQWWKDWVKHGLGQRWFRPHIRUWKXQWLOWULDO         RI WKH &DUUROO WHVW WR GHWHUPLQH ZKHWKHU WKH SURVHFXWRULDO
ZDVLUUHOHYDQWIDOVHRUPLVOHDGLQJDWEHVWl                        PLVFRQGXFWZDVVXIILFLHQWO\IODJUDQWWRYLRODWH0DFLDVjVGXH
                                                                       SURFHVV ULJKWV  )LUVW ZH PXVW GHWHUPLQH mZKHWKHU WKH
  0DFLDVWKHQILOHGDPRWLRQIRUUHFRQVLGHUDWLRQDUJXLQJWKDW         FRQGXFWDQGUHPDUNVRIWKHSURVHFXWRUWHQGHGWRPLVOHDGWKH
WKH0LFKLJDQ&RXUWRI$SSHDOVKDGYLRODWHGWKHODZRIWKH             MXU\RUSUHMXGLFHWKHGHIHQGDQWl&DUWHU)GDW
FDVHGRFWULQHE\UHYHUVLQJLWVHDUOLHUGHFLVLRQHYHQWKRXJKLW
KDGFRQFOXGHGWKDW0DWHRZDVLUUHOHYDQW2QsXO\              7KH SURVHFXWRUjV VWDWHPHQWV DV QRWHG DERYH ZHUH QRW
WKH0LFKLJDQ&RXUWRI$SSHDOVGHQLHG0DFLDVjVPRWLRQDIWHU             EDVHG XSRQ HYLGHQFH LQ WKH UHFRUG  ,Q SDUWLFXODU WKH
GHWHUPLQLQJWKDWWKH0LFKLJDQ6XSUHPH&RXUWKDGmOHIWRSHQ             SURVHFXWRUjVFRPPHQWWKDW5XHODVGLGQRWFRPHIRUZDUGXQWLO
WKHGRRUWRUHFRQVLGHULQJZKHWKHUWKHUHZDVHUURUDWDOOl           mWKHGD\RIWULDORUVKRUWO\EHIRUHlLVGLUHFWO\FRQWUDGLFWHGE\
                                                                       WKHQRWLFHRIDOLELWKDWZDVGDWHGWZRPRQWKVSULRUWRWULDO
   $IWHU WKH 0LFKLJDQ 6XSUHPH &RXUW GHQLHG 0DFLDVjV              7KHVWDWHPHQWZDVWKXVFOHDUO\PLVOHDGLQJ%HFDXVH5XHODVjV
DSSOLFDWLRQIRUDSSHDO0DFLDVILOHGDSHWLWLRQIRUDZULWRI          WHVWLPRQ\ZDVFHQWUDOWR0DFLDVjVGHIHQVHWKHSURVHFXWRUjV
KDEHDV FRUSXV LQ WKH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH     PLVOHDGLQJ VWDWHPHQWV UHJDUGLQJ KHU WHVWLPRQ\ ZHUH DOVR
(DVWHUQ'LVWULFW RI0LFKLJDQDUJXLQJWKDWWKHSURVHFXWRUjV           SUHMXGLFLDO
VWDWHPHQWV UHJDUGLQJ 5XHODVjV WHVWLPRQ\ FRQVWLWXWHG
SURVHFXWRULDO PLVFRQGXFW  7KH GLVWULFW FRXUW VXEMHFWHG             6HFRQG ZH PXVW GHWHUPLQH mZKHWKHU WKH FRQGXFW RU
0DFLDVjV FODLP WR WKH IRXUIDFWRU WHVW RXWOLQHG LQ 8QLWHG      UHPDUNVZHUHLVRODWHGRUH[WHQVLYHl,G7KHSURVHFXWRUjV
6WDWHVY&DUUROO)GWK&LUWR           VWDWHPHQWWRRNSODFHGXULQJUHEXWWDOFORVLQJDUJXPHQWDQG
GHWHUPLQH ZKHWKHU WKH SURVHFXWRULDO PLVFRQGXFW YLRODWHG           0DFLDV GRHV QRW FRQWHQG WKDW WKH SURVHFXWRU DFWHG
0DFLDVjVGXHSURFHVVULJKWVDQGFRQFOXGHGWKDWmQRQHRIWKH           LQDSSURSULDWHO\DWDQ\RWKHUSRLQWGXULQJWKHWULDO%HFDXVH
>IRXU@IDFWRUVZHLJK>V@LQ3HWLWLRQHUjVIDYRURUGHPRQVWUDWH>V@        WKH FRPPHQWV ZHUH LVRODWHG WKLV IDFWRU GRHV QRW ZHLJK LQ
WKDW3HWLWLRQHUjVWULDOZDVIXQGDPHQWDOO\XQIDLUl0RUHRYHU          0DFLDVjVIDYRU
      0DFLDVY0DNRZVNL                           1R      1R                             0DFLDVY0DNRZVNL           

HYLGHQFHDQGDUHSUHMXGLFLDOl%\UG)GDWLQWHUQDO      WKH GLVWULFW FRXUW FRQFOXGHG WKDW HYHQ LI WKH UHPDUNV ZHUH
TXRWDWLRQPDUNVRPLWWHG                                          LPSURSHUWKH\FRQVWLWXWHGKDUPOHVVHUURUEHFDXVH0DFLDVZDV
                                                                     LGHQWLILHGDVWKHVKRRWHUE\VHYHQH\HZLWQHVVHV0DFLDVWKHQ
   7KH SURVHFXWRUjV VWDWHPHQWV GXULQJ UHEXWWDO FORVLQJ          ILOHGDPRWLRQIRUUHFRQVLGHUDWLRQRIWKHGLVWULFWFRXUWjVRUGHU
DUJXPHQWPDGHIDFWXDOFODLPVDERXWZKHQ5XHODVFDPH              ZKLFKWKHFRXUWGHQLHG7KLVWLPHO\DSSHDOIROORZHG
IRUZDUGZLWKDQDOLELIRU0DFLDVDQGZKHWKHUVKHUHSRUWHG
WKHUHOHYDQWLQIRUPDWLRQWRWKHSROLFHGHSDUWPHQW$OWKRXJK                                  ,,$1$/<6,6
LWDSSHDUVIURPWKHUHFRUGWKDWGHIHQVHFRXQVHOREMHFWHGRQO\
WRWKHODWHURIWKHVHIDFWXDOFODLPVWKHJRYHUQPHQWGRHVQRW        $ 6WDQGDUGRIUHYLHZ
FRQWHQG WKDW 0DFLDV KDV ZDLYHG KLV DUJXPHQW WKDW WKH
SURVHFXWRUjVFRPPHQWVUHJDUGLQJZKHQ5XHODVFDPHIRUZDUG               7KH $QWLWHUURULVP DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW
ZHUHLPSURSHU                                                       $('3$ RI  3XE / 1R   6WDW 
                                                                     $SUDSSOLHVWR0DFLDVjVFDVHEHFDXVHKHILOHGKLV
  :KLOHFURVVH[DPLQLQJ5XHODVWKHSURVHFXWRUGLGQRWDVN           KDEHDVFRUSXVSHWLWLRQSXUVXDQWWR86&DIWHUWKH
5XHODVDQ\TXHVWLRQVUHJDUGLQJZKHQVKHFDPHIRUZDUGZLWK            HIIHFWLYHGDWHRI$('3$/LQGKY0XUSK\86
KHU DOLEL LQIRUPDWLRQ  1RU GLG WKH SURVHFXWRU DVN 5XHODV   $IHGHUDOFRXUWLVDXWKRUL]HGWRJUDQWDZULWRI
ZKHWKHU VKH KDG UHSRUWHG KHU LQIRUPDWLRQ WR WKH SROLFH       KDEHDVFRUSXVWRDSHUVRQLQFXVWRG\SXUVXDQWWRDVWDWHFRXUW
GHSDUWPHQW7KHFORVHVWWKHSURVHFXWRUFDPHWRDVNLQJ5XHODV        MXGJPHQW EXW RQO\ LI WKH DGMXGLFDWLRQ RI WKH FODLP
ZKHWKHUVKHKDGFRQWDFWHGWKHSROLFHGHSDUWPHQWZDVGXULQJ           mUHVXOWHGLQDGHFLVLRQWKDWZDVFRQWUDU\WRRULQYROYHGDQ
WKHIROORZLQJH[FKDQJH                                              XQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG)HGHUDOODZ
                                                                     DVGHWHUPLQHGE\WKH6XSUHPH&RXUWRIWKH8QLWHG6WDWHVRU
    4 'LG\RXGLVFXVV\RXUWHVWLPRQ\ZLWKDQ\ERG\HOVH              UHVXOWHGLQDGHFLVLRQWKDWZDVEDVHGRQDQXQUHDVRQDEOH
       RWKHUWKDQWKHGHIHQGDQW"                                     GHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRIWKHHYLGHQFHSUHVHQWHGLQ
    $ 1R                                                           WKH6WDWHFRXUWSURFHHGLQJl86&G
    4 <RXKDYHQjWWDONHGWRsHQQLIHU0RMLFD"
    $ 2K\HVPHDQGKHUWDONHGDERXWZKDWKDSSHQHG                  7KH 6XSUHPH &RXUW KDV GHFODUHG WKDW mD IHGHUDO KDEHDV
    4 ,jPVRUU\"                                                    FRXUWPDNLQJWKHµXQUHDVRQDEOHDSSOLFDWLRQjLQTXLU\VKRXOG
    $ ,VDLGZHWDONHGDERXW\RXNQRZZKDWjVJRLQJRQ            DVNZKHWKHUWKHVWDWHFRXUWjVDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG
    4 +DYH\RXWDONHGWRsHQQLIHU0RUDQ",PHDQ$QJHOD             IHGHUDO ODZ ZDV REMHFWLYHO\ XQUHDVRQDEOHl  :LOOLDPV Y
       0RUDQ"                                                        7D\ORU86,QLWVGLVFXVVLRQRIWKH
    $ 1R                                                           WHUP mREMHFWLYHO\ XQUHDVRQDEOHl WKH &RXUW VWDWHG WKDW mD
                                                                     IHGHUDOKDEHDVFRXUWPD\QRWLVVXHWKHZULWVLPSO\EHFDXVH
5XHODVjV DQVZHU WR WKH ILUVW TXHVWLRQ FRXOG SRVVLEO\ EH      WKDW FRXUW FRQFOXGHV LQ LWV LQGHSHQGHQW MXGJPHQW WKDW WKH
FRQVWUXHGDVHYLGHQFHWKDWVKHGLGQRWVSHDNZLWKWKHSROLFH         UHOHYDQW VWDWHFRXUW GHFLVLRQ DSSOLHG FOHDUO\ HVWDEOLVKHG
GHSDUWPHQW UHJDUGLQJ KHU DOLEL LQIRUPDWLRQ  7KH VHULHV RI   IHGHUDOODZHUURQHRXVO\RULQFRUUHFWO\5DWKHUWKDWDSSOLFDWLRQ
IROORZXSTXHVWLRQVKRZHYHUFOHDUO\LQGLFDWHVWKDWWKLVOLQHRI     PXVWDOVREHXQUHDVRQDEOHl,GDW$GLVWULFWFRXUWjV
TXHVWLRQLQJ ZDV LQWHQGHG WR GHWHUPLQH LI 5XHODV KDG           GHQLDO RI WKH ZULW LV VXEMHFW WR GH QRYR UHYLHZ  5RJHUV Y
GLVFXVVHG KHU DOLEL WHVWLPRQ\ ZLWK DQ\ RI KHU RU 0DFLDVjV   +RZHV)GWK&LU
IULHQGVQRWZLWKWKHSROLFH
       0DFLDVY0DNRZVNL                                 1R     1R                          0DFLDVY0DNRZVNL         

% 3URVHFXWRULDOPLVFRQGXFW                                                ULJKW WR FRQIURQW KLV DFFXVHUV DV JXDUDQWHHG E\ WKH 'XH
                                                                           3URFHVV&ODXVHDQGWKH6L[WK$PHQGPHQW
   'XULQJWKHSURVHFXWRUjVUHEXWWDOFORVLQJDUJXPHQW0DFLDVjV
FRXQVHOREMHFWHGWRWKHSURVHFXWRUjVLPSOLFDWLRQWKDWKHKDG                 m,QGHFLGLQJZKHWKHUSURVHFXWRULDOPLVFRQGXFWPDQGDWHV
mWZLVW>HG@l WKH HYLGHQFH  $IWHU WKH VWDWH WULDO FRXUW             WKDW KDEHDV UHOLHI EH JUDQWHG WKH &RXUW PXVW DSSO\ WKH
DGPRQLVKHGWKHSURVHFXWRUWRmFRQILQH>KHU@UHPDUNVWR               KDUPOHVVHUURUVWDQGDUGl3ULWFKHWWY3LWFKHU)G
WKHIDFWVWKDW>VKHKDG@SURYHQlWKHSURVHFXWRUQRQHWKHOHVV               WK&LU7KHUHOHYDQWTXHVWLRQLVWKXVZKHWKHUWKH
DWWDFNHG WKH YHUDFLW\ RI %UHQGD 5XHODV 0DFLDVjV NH\ DOLEL         SURVHFXWRUjVFRPPHQWVmVRLQIHFWHGWKHWULDOZLWKXQIDLUQHVV
ZLWQHVVZLWKWKHIROORZLQJDUJXPHQW                                      DVWRPDNHWKHUHVXOWLQJFRQYLFWLRQDGHQLDORIGXHSURFHVVl
                                                                           'RQQHOO\Y'H&KULVWRIRUR86
       /DGLHVDQGJHQWOHPHQ\RXKDYHVHYHQH\HZLWQHVVHV
    ZKRVDLGLWjVWKHGHIHQGDQWZKRGLGLW<RXKDYHRQH                    7KLVFRXUWKDVDGRSWHGDWZRVWHSDSSURDFKIRUGHWHUPLQLQJ
    \RXQJ ODG\ >%UHQGD 5XHODV@ ZKR KDG EHHQ GULQNLQJ                ZKHWKHUSURVHFXWRULDOPLVFRQGXFWYLRODWHVDGHIHQGDQWjVGXH
    %RRQHjV)DUPZKRLVQjWVXUHZKDWVKHZDVZDWFKLQJ                    SURFHVVULJKWV8QLWHG6WDWHVY&DUWHU)G
    ZKRVD\Vm<HDKZHZHUHWKHUHIRUWZRRUWKUHHKRXUV                  WK&LUVHH%R\OHY0LOOLRQ)GWK
    ZDWFKLQJPRYLHVl                                                      &LUXWLOL]LQJWKLVWHVWWRHYDOXDWHDGXHSURFHVVFODLP
       :HOO%UHQGDZKHUHZHUH\RXLQsDQXDU\"6KHVDLG                  EDVHGXSRQSURVHFXWRULDOPLVFRQGXFWUDLVHGLQDSRVW$('3$
    WKHHQGRIsDQXDU\VKHKDGWDONHGWRWKHGHIHQGDQW:K\               KDEHDV SHWLWLRQ  )LUVW ZH PXVW FRQVLGHU ZKHWKHU WKH
    GLGQjWVKHJRWRWKHSROLFHWKHQDQGVD\m+H\\RXjYHJRW             SURVHFXWRUjVFRQGXFWDQGUHPDUNVZHUHLPSURSHU,G,IZH
    WKHZURQJJX\l"                                                        FRQFOXGHWKDWWKHUHPDUNVZHUHLPSURSHUWKHQZHPXVWDSSO\
       0U5LELWZHU<RXU+RQRU,jOOREMHFW7KDWjVEDVHG                WKHIRXUIDFWRUWHVWVHWIRUWKLQ8QLWHG6WDWHVY&DUUROO
    XSRQIDFWVQRWLQHYLGHQFHWKDWVKHHYHQNQHZWKDWWKH                )GWK&LUWRGHWHUPLQHmZKHWKHUWKH
    SROLFHKDGLVVXHGDQ\ZDUUDQWV7KHUHLVQRWKLQJWRVKRZ              LPSURSULHW\ZDVIODJUDQWlDQGWKXVYLRODWHGWKHGHIHQGDQWjV
    WKDWVKHNQHZWKDWWKLVPDQZDVFKDUJHGRUZDQWHGIRU                  GXHSURFHVVULJKWV&DUWHU)GDW7KHIRXUIDFWRUV
    DQ\WKLQJ LI LQ IDFW KH ZDV  6KH LV PDNLQJ DUJXPHQW         DUHDVIROORZVmZKHWKHUWKHFRQGXFWDQGUHPDUNVRIWKH
    EDVHGXSRQIDFWVQRWLQHYLGHQFH,REMHFW                           SURVHFXWRU WHQGHG WR PLVOHDG WKH MXU\ RU SUHMXGLFH WKH
       0V 'DYLV <RXU +RQRU , WKLQN LWjV D UHDVRQDEOH            GHIHQGDQWZKHWKHUWKHFRQGXFWRUUHPDUNVZHUHLVRODWHG
    LQIHUHQFH6KHFRPHVIRUWKWKHGD\RIWULDO                          RU H[WHQVLYH  ZKHWKHU WKH UHPDUNV ZHUH GHOLEHUDWHO\ RU
       7KH&RXUW2YHUUXOHG                                               DFFLGHQWDOO\PDGHDQGZKHWKHUWKHHYLGHQFHDJDLQVWWKH
       0V'DYLV7KDQN\RX                                               GHIHQGDQWZDVVWURQJl,G
       /DGLHVDQGJHQWOHPHQVKHFRPHVIRUWKWKHGD\RIWULDO
    RU VKRUWO\ EHIRUH DQG VD\V QRW WR WKH SROLFH EXW WR           %HIRUHSURFHHGLQJWRWKHIRXUIDFWRUVRIWKH&DUUROOWHVWZH
    VRPHRQHHOVHDSSDUHQWO\m<RXjYHJRWWKHZURQJJX\l                   PXVWILUVWGHWHUPLQHZKHWKHUWKHSURVHFXWRUjVVWDWHPHQWVZHUH
    ,VWKDWFRQVLVWHQWZLWKFRPPRQVHQVH",VWKDWFRQVLVWHQW              LPSURSHU  $OWKRXJK D SURVHFXWRU LV DOORZHG mWR DUJXH
    ZLWK WUXWK"  1R LW LV QRW  ,I VKH NQHZ WKDW KH ZDVQjW   UHDVRQDEOH LQIHUHQFHV IURP WKH HYLGHQFHl %\UG Y &ROOLQV
    WKHUHZK\GLGQjWVKHJRWRWKHSROLFHDQGWHOOWKHP"                  )GWK&LUKHRUVKHLVQRWDOORZHGWR
                                                                           PLVVWDWHWKHHYLGHQFH&DUWHU)GDW,WLVWKXV
(PSKDVLVDGGHG0DFLDVFRQWHQGVWKDWKHLVHQWLWOHGWRD                mLPSURSHUIRUDSURVHFXWRUGXULQJFORVLQJDUJXPHQWVWREULQJ
ZULW RI KDEHDV FRUSXV EHFDXVH WKH SURVHFXWRUjV VWDWHPHQWV           WRWKHDWWHQWLRQRIWKHMXU\DQ\SXUSRUWHGIDFWVWKDWDUHQRWLQ
GHSULYHGKLPRIKLVFRQVWLWXWLRQDOULJKWWRDIDLUWULDODQGKLV