Court Opinion

ID: 2969526
Source: CourtListenerOpinion
Date Created: 2015-09-22 15:50:58.689436+00
Date Added: 2024-06-11T11:43:24.964508
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
     7LQVOH\Y*HQHUDO0RWRUV&RUSHWDO        1R                       3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

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

EHFDXVHRIWKHQDWXUHRIXQGXHLQIOXHQFHFODLPVDQGEHFDXVH                               )LOH 1DPH DS

7LQVOH\KDVSUHVHQWHGVXIILFLHQWHYLGHQFHWRUDLVHDJHQXLQH
LVVXH RI PDWHULDO IDFW DV WR ZKHWKHU (GZDUG :LOOLDPV ZDV
XQGXO\LQIOXHQFHGE\%HXODK&DOORZD\ZKHQKHFKDQJHGWKH               81,7('67$7(6&28572)$33($/6
EHQHILFLDU\RIKLVOLIHLQVXUDQFHSODQLIKHLQIDFWGLGVRZH                          )257+(6,;7+&,5&8,7
EHOLHYHWKDWVXPPDU\MXGJPHQWZDVLQDSSURSULDWHLQWKLVFDVH                               BBBBBBBBBBBBBBBBB
7KHHYLGHQFHGHPRQVWUDWHVDQXPEHURIWKHIDFWRUVUHOHYDQW
WRWKHXQGXHLQIOXHQFHGHWHUPLQDWLRQLWLVXQGLVSXWHGWKDW
:LOOLDPV ZDV LQ SRRU SK\VLFDO KHDOWK DW WKH WLPH KH
SXUSRUWHGO\FKDQJHGEHQHILFLDULHVDQGWKHFKDQJHZDVPDGH               :,//,( /(( 7,16/(<              ;
VKRUWO\EHIRUHKLVGHDWKLQRUGHUWREHQHILWDQHLJKERUUDWKHU                    3ODLQWLII$SSHOODQW    
WKDQDEORRGUHODWLYH$OWKRXJK&DOORZD\NQHZ:LOOLDPVIRU                                               
PDQ\\HDUVKHUDIILGDYLWDGPLWVWKDWKHUSHUVRQDOUHODWLRQVKLS                                             1R
ZLWKKLPEHJDQRQO\WKUHH\HDUVEHIRUHKLVGHDWK0RUHRYHU                      Y                      
WKHDIILGDYLWRI0DU\06LPPV:LOOLDPVjVQLHFHYLHZHGLQ                                                !
                                                                                                          
WKHOLJKWPRVWIDYRUDEOHWR7LQVOH\LQGLFDWHVWKDW&DOORZD\            *(1(5$/ 027256                    
H[HUWHGVRPHFRQWURORYHU:LOOLDPVjVILQDQFHVDQGWKDWVKH              &25325$7,21                      
QHJOHFWHGKLPIURPZKLFKDUHDVRQDEOHIDFWILQGHUFRXOGLQIHU           0(75232/,7$1 /,)(                
WKDW&DOORZD\ZDVH[HUFLVLQJFRHUFLRQRYHU:LOOLDPVLQKLV                               'HIHQGDQWV 
GHSHQGHQWVWDWH$OWKRXJKWKHUHLVVRPHTXHVWLRQDVWRWKH                                               
DGPLVVLELOLW\ RI SRUWLRQV RI WKH DIILGDYLWV WKDW 7LQVOH\ KDV                                      
VXEPLWWHGWKHDGPLVVLELOLW\TXHVWLRQKDVQRWEHHQUDLVHGE\            %(8/$+ &$//2:$<                  
&DOORZD\,QDQ\HYHQWZHEHOLHYHWKDWWKHDIILGDYLWVFRQWDLQ                           7KLUG3DUW\ 
VXIILFLHQWFRPSHWHQWHYLGHQFHWRUDLVHWKHTXHVWLRQRIIDFWDV                   'HIHQGDQW$SSHOOHH 
WRZKHWKHU&DOORZD\H[HUWHGXQGXHLQIOXHQFHRYHU:LOOLDPV                                                
                                                                                                         1
')RUJHU\
                                                                             $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
  7LQVOH\ DOVR VXJJHVWV WKDW :LOOLDPVjV VLJQDWXUH RQ WKH             IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
EHQHILFLDU\ GHVLJQDWLRQ IRUP PD\ KDYH EHHQ IRUJHG  7KH            1Rn3DWULFNs'XJJDQ'LVWULFWsXGJH
GLVWULFW FRXUW GLG QRW DGGUHVV WKLV FRQWHQWLRQ EHORZ  :H
WKHUHIRUHUHPDQGIRUWKHGLVWULFWFRXUWWRFRQVLGHU7LQVOH\jV                          6XEPLWWHG6HSWHPEHU
IRUJHU\FODLP
                                                                                   'HFLGHGDQG)LOHG6HSWHPEHU
                     ,,,&21&/86,21
                                                                               %HIRUH1(/621DQG0225(&LUFXLWsXGJHV
  )RU WKH IRUHJRLQJ UHDVRQV ZH 5(9(56( WKH GLVWULFW                           :,/+2,7
&KLHI'LVWULFWsXGJH
FRXUWjVJUDQWRIVXPPDU\MXGJPHQWDQG5(0$1'IRUIXUWKHU
SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ
                                                                           
                                                                            7KH +RQRUDEOH +HQU\ 5 :LOKRLW sU &KLHI 8QLWHG 6WDWHV 'LVWULFW
                                                                       sXGJH IRU WKH (DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ

                                                                                                          
     7LQVOH\Y*HQHUDO0RWRUV&RUSHWDO       1R      1R       7LQVOH\Y*HQHUDO0RWRUV&RUSHWDO           

                     BBBBBBBBBBBBBBBBB                               RYHUSRZHUDQGVXEMXJDWHWKHPLQGRIWKHWHVWDWRUDVWRGHVWUR\
                                                                     WKH WHVWDWRUjV IUHH DJHQF\ DQG PDNH WKH WHVWDWRU H[SUHVV
                          &2816(/                                    DQRWKHUjVZLOOUDWKHUWKDQKLVRUKHURZQlFLWDWLRQRPLWWHG
                                                                     &DQQRQY$OOHQ,QUH(VWDWHRI'HSULHVW6:G
21 %5,()  6WHYH s :HLVV (ULF $ 0LFKDHOV +(57=         7HQQ &W $SS   $ VKRZLQJ RI PHUH PRWLYH RU
6&+5$0	6$5(7=.<%ORRPILHOG+LOOV0LFKLJDQIRU                   RSSRUWXQLW\ WR H[HUW H[FHVVLYH FRQWURO RYHU DQRWKHU LV QRW
$SSHOOHH:LOOLH/HH7LQVOH\&ODQWRQ$ODEDPDSURVH             HQRXJKWRPDNHRXWDFODLPRIXQGXHLQIOXHQFHUDWKHUWKH
                                                                     LQIOXHQFHPXVWDFWXDOO\EHH[HUWHGHLWKHUSULRUWRRUDWWKH
                     BBBBBBBBBBBBBBBBB                               WLPHRIWKHH[HFXWLRQRIWKHUHOHYDQWGRFXPHQW6HH%\H
                                                                     6:GDW.LJDUY0LFKLJDQ&RQIHUHQFH$VVjQRI
                         23,1,21                                     6HYHQWK'D\ $GYHQWLVWV ,Q UH (VWDWH RI (ULFNVRQ 
                     BBBBBBBBBBBBBBBBB                               1:G0LFK&W$SS+HQNOH1(G
  .$5(1 1(/621 0225( &LUFXLW sXGJH  7KLV LV DQ             DW+DUSHUY:DWNLQV6:G7HQQ&W
LQWHUSOHDGHUDFWLRQLQZKLFK:LOOLH/HH7LQVOH\DSSHDOVWKH          $SS&RXUWVKDYHORRNHGDWDQXPEHURIIDFWRUVWR
GHFLVLRQRIWKH86'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFWRI      GHWHUPLQH ZKHWKHU XQGXH LQIOXHQFH KDV EHHQ H[HUWHG LQ D
0LFKLJDQ JUDQWLQJ VXPPDU\ MXGJPHQW WR WKLUGSDUW\               JLYHQFDVHLQFOXGLQJWKHSK\VLFDODQGPHQWDOFRQGLWLRQRIWKH
GHIHQGDQWDSSHOOHH %HXODK &DOORZD\ DQG DZDUGLQJ WKH             EHQHIDFWRU ZKHWKHU WKH EHQHIDFWRU ZDV JLYHQ DQ\
EHQHILWV RI (GZDUG % :LOOLDPVjV (5,6$FRYHUHG OLIH            GLVLQWHUHVWHGDGYLFHZLWKUHVSHFWWRWKHGLVSXWHGWUDQVDFWLRQ
LQVXUDQFHSODQWR&DOORZD\)RUWKHUHDVRQVVHWRXWEHORZ          WKH mXQQDWXUDOQHVVl RI WKH JLIW WKH EHQHILFLDU\jV UROH LQ
ZH5(9(56(DQG5(0$1'IRUDWULDORQWKHPHULWV                     SURFXULQJWKHEHQHILWDQGWKHEHQHILFLDU\jVSRVVHVVLRQRIWKH
                                                                     GRFXPHQWFRQIHUULQJWKHEHQHILWFRHUFLYHRUWKUHDWHQLQJDFWV
                     ,%$&.*5281'                                  RQ WKH SDUW RI WKH EHQHILFLDU\ LQFOXGLQJ HIIRUWV WR UHVWULFW
                                                                     FRQWDFWEHWZHHQWKHEHQHIDFWRUDQGKLVUHODWLYHVFRQWURORI
  (GZDUG%:LOOLDPVZKRGLHGRQ'HFHPEHUKDG             WKHEHQHIDFWRUjVILQDQFLDODIIDLUVE\WKHEHQHILFLDU\DQGWKH
LQLWLDOO\ GHVLJQDWHG KLV QLHFH :LOOLH /HH 7LQVOH\ DV WKH   QDWXUHDQGOHQJWKRIWKHUHODWLRQVKLSEHWZHHQWKHEHQHILFLDU\
EHQHILFLDU\RIWKHOLIHLQVXUDQFHSODQWKDWKHPDLQWDLQHGXQGHU      DQGWKHEHQHIDFWRU6HH%\H6:GDW0F3HDN
WKH*HQHUDO0RWRUV/LIH,QVXUDQFHDQG'LVDELOLW\3URJUDP            1:GDW,QUH(VWDWHRI6ZDQWHN1:G
6HYHUDOGD\VEHIRUHKLVGHDWKKRZHYHU:LOOLDPVH[HFXWHGD          0LFK&W$SS6ZLKDUWY'R]LHU1(G
QHZm'HVLJQDWLRQRI%HQHILFLDU\lIRUPQDPLQJKLVQHLJKERU          2KLR&W$SS'HSULHVW6:GDW
%HXODK&DOORZD\LQVWHDG&DOORZD\KDGDSSDUHQWO\FDUHGIRU         VHHJHQHUDOO\$0 s85 ''XUHVVDQG8QGXH,QIOXHQFH
:LOOLDPVZKLOHKHZDVLOODQGUHVLGHGZLWKKLPIRUDSHULRG          
RIWLPH
                                                                        $VRXUVXPPDU\RIWKHODZVXJJHVWVWKHLQTXLU\LQWRWKH
   %RWK &DOORZD\ DQG 7LQVOH\ DWWHPSWHG WR FODLP EHQHILWV      H[HUFLVHRIXQGXHLQIOXHQFHLVDKLJKO\IDFWLQWHQVLYHRQH6HH
IURPWKH*HQHUDO0RWRUVSODQ6XEVHTXHQWO\7LQVOH\ILOHG           $0 s85 ''XUHVVDQG8QGXH,QIOXHQFH  
VXLWDJDLQVW*HQHUDO0RWRUVDQGLWVLQVXUHU0HWURSROLWDQ/LIH      0RUHRYHUDVDUHVXOWRIWKHVXEWOHDQGRIWHQFRYHUWZD\VLQ
LQWKH86'LVWULFW&RXUWIRUWKH0LGGOH'LVWULFWRI$ODEDPD       ZKLFK XQGXH LQIOXHQFH PD\ EH H[HUFLVHG LW PXVW RIWHQ EH
WKH VWDWH LQ ZKLFK 7LQVOH\ OLYHV FODLPLQJ WKDW VKH ZDV     SURYHQE\PHDQVRIFLUFXPVWDQWLDOHYLGHQFH6HHHJ5LFK
ODZIXOO\HQWLWOHGWRWKHLQVXUDQFHSURFHHGVDQGWKDW:LOOLDPV        Y4XLQQ1(G2KLR&W$SS$0
ZDVDFWLQJXQGHUXQGXHLQIOXHQFHIURP&DOORZD\ZKHQKH               s85 ' 'XUHVV DQG 8QGXH ,QIOXHQFH     7KXV
       7LQVOH\Y*HQHUDO0RWRUV&RUSHWDO             1R      1R      7LQVOH\Y*HQHUDO0RWRUV&RUSHWDO          

&8QGXH,QIOXHQFH                                                          FKDQJHG WKH EHQHILFLDU\ RI KLV SODQ  $IWHU WKH FDVH ZDV
                                                                             WUDQVIHUUHGWRWKH86'LVWULFW&RXUWIRUWKH(DVWHUQ'LVWULFW
   6LQFH 7LQVOH\jV FODLP IRU WKH EHQHILWV RI :LOOLDPVjV OLIH         RI0LFKLJDQ*0DQG0HWURSROLWDQ/LIHILOHGDWKLUGSDUW\
LQVXUDQFHSODQLVSUHHPSWHGE\(5,6$WKLVFRXUWPXVWmORRN                  FRPSODLQW IRU LQWHUSOHDGHU ZKLFK EURXJKW WKLUGSDUW\
WRHLWKHUWKHVWDWXWRU\ODQJXDJHRUILQGLQJQRDQVZHUWKHUHWR             GHIHQGDQW %HXODK &DOORZD\ LQWR WKH DFWLRQ  2Q 0D\ 
IHGHUDOFRPPRQODZZKLFKLIQRWFOHDUPD\GUDZJXLGDQFH                    WKHGLVWULFWFRXUWJUDQWHGVXPPDU\MXGJPHQWLQIDYRURI
IURPDQDORJRXVVWDWHODZl0F0LOODQ)GDW6LQFH                *0 DQG 0HWURSROLWDQ /LIH EDVHG RQ WKHLU GHSRVLW RI
(5,6$ GRHV QRW FRQWDLQ DQ\ SURYLVLRQV UHJXODWLQJ WKH                  ZLWKWKH&OHUNRI&RXUWUHSUHVHQWLQJWKHHQWLUH
SUREOHPRIEHQHILFLDU\GHVLJQDWLRQVWKDWDUHIRUJHGWKHUHVXOW              DPRXQWRIEHQHILWVGXHXQGHUWKHOLIHLQVXUDQFHSURJUDPSOXV
RI XQGXH LQIOXHQFH RU RWKHUZLVH LPSURSHUO\ SURFXUHG LW              LQWHUHVW
DSSHDUV WKDW IHGHUDO FRPPRQ ODZ PXVW DSSO\ WR 7LQVOH\jV
FODLPV )XUWKHUPRUHEHFDXVHWKHUHLVQRHVWDEOLVKHGIHGHUDO                 &DOORZD\WKHQPRYHGIRUVXPPDU\MXGJPHQWFODLPLQJWKDW
FRPPRQODZLQWKLVFLUFXLWGHDOLQJZLWKIRUJHU\DQGXQGXH                    WKHUHZDVQRJHQXLQHLVVXHRIPDWHULDOIDFWFRQFHUQLQJWKH
LQIOXHQFHLQWKHGHVLJQDWLRQRIEHQHILFLDULHVZHORRNWRVWDWH             DSSURSULDWH EHQHILFLDU\ XQGHU WKH *0 3ODQ DQG WKDW QR
ODZSULQFLSOHVIRUJXLGDQFH                                                 FRPSHWHQW HYLGHQFH VXSSRUWHG 7LQVOH\jV FODLP RI XQGXH
                                                                             LQIOXHQFH  $SSO\LQJ VWDWH ODZ WKH GLVWULFW FRXUW JUDQWHG
   +DYLQJUHYLHZHGWKHFDVHODZUHJDUGLQJXQGXHLQIOXHQFHLQ                 &DOORZD\jVPRWLRQDQGGLVPLVVHG7LQVOH\jVFRPSODLQW7KH
WKHYDULRXVVWDWHVWKDWFRPSULVHWKLVFLUFXLWZHFDQH[WUDFW                GLVWULFWFRXUWIRXQGWKDW7LQVOH\KDGWKHEXUGHQRISURYLQJ
VRPHVKDUHGJHQHUDOSULQFLSOHVWRJXLGHRXUIHGHUDOFRPPRQ                  WKDW:LOOLDPVjVGHFLVLRQWRFKDQJHWKHEHQHILFLDU\RIKLVOLIH
ODZDQDO\VLVRI7LQVOH\jVXQGXHLQIOXHQFHFODLP)LUVWXQGXH               LQVXUDQFHSODQZDVDIIHFWHGE\XQGXHLQIOXHQFHH[HUWHGE\
LQIOXHQFHLVJHQHUDOO\GHILQHGDVLQIOXHQFHWKDWLVmVXIILFLHQW              &DOORZD\DQGWKDW7LQVOH\KDGIDLOHGWRFDUU\WKDWEXUGHQ
WR RYHUSRZHU YROLWLRQ GHVWUR\ IUHH DJHQF\ DQG LPSHO WKH            2QDSSHDO7LQVOH\DFWLQJSURVHDUJXHVWKDWWKHGLVWULFWFRXUW
JUDQWRUWRDFWDJDLQVWWKHJUDQWRUjVLQFOLQDWLRQDQGIUHHZLOOl             HUUHG LQ LWV GHWHUPLQDWLRQ RI KHU XQGXH LQIOXHQFH FODLP
0F3HDNY0F3HDN1:G0LFK&W$SS                      0RUHRYHUVKHVXJJHVWVDVVKHGLGLQWKHGLVWULFWFRXUWWKDW
DSSHDOGHQLHG1:G0LFKVHHDOVR%\H                     :LOOLDPVjVVLJQDWXUHRQWKHVHFRQGEHQHILFLDU\GHVLJQDWLRQ
Y 0DWWLQJO\  6:G   .\  +HQNOH Y             IRUPPD\KDYHEHHQIRUJHG
+HQNOH1(G2KLR&W$SSm>$@Q
LQGLYLGXDOjV LQIOXHQFH LV XQGXH ZKHQ LW UHVWUDLQV D WHVWDWRU                                 ,,$1$/<6,6
IURPGLVSRVLQJRISURSHUW\LQDFFRUGDQFHZLWKWKHWHVWDWRUjV
RZQ ZLVKHV DQG MXGJPHQWV DQG VXEVWLWXWHV WKH ZLVKHV RU               $6XPPDU\sXGJPHQW6WDQGDUG
MXGJPHQWV RI DQRWKHU  7KH XQGXH LQIOXHQFH PXVW VR
                                                                                7KLV FRXUW UHYLHZV GH QRYR WKH GLVWULFW FRXUWjV JUDQW RI
                                                                             VXPPDU\MXGJPHQW6HH(TXLWDEOH/LIH$VVXUDQFH6RFj\Y
                                                                             3RH)GWK&LU7KXVXVLQJWKH
    
      6HYHUDO FDVHV LQ WKLV FLUFXLW KDYH UHDG (5,6$jV PDQGDWH WKDW           VDPHVWDQGDUGDVWKHGLVWULFWFRXUWZHZLOOYLHZWKHHYLGHQFH
ILGXFLDULHV DGPLQLVWHU SODQV mLQ DFFRUGDQFH ZLWK WKH GRFXPHQWV DQG           LQWKHOLJKWPRVWIDYRUDEOHWRWKHQRQPRYLQJSDUW\DQGXSKROG
LQVWUXPHQWV JRYHUQLQJ WKH SODQl  86&  D ' WR PHDQ WKDW    WKH JUDQW RI VXPPDU\ MXGJPHQW RQO\ mLI WKH SOHDGLQJV
FRXUWV QHHG QRW ORRN EH\RQG WKH EHQHILFLDU\ GHVLJQDWLRQ IRUP WR              GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG DGPLVVLRQV RQ
GHWHUPLQH WKH DSSURSULDWH EHQHILFLDU\                    )G DW     ILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZWKDWWKHUHLVQR
	 Q             )G DW  :H GR QRW EHOLHYH WKDW WKLV UXOH LV
                                       6HH HJ 3UHVVOH\

DSSOLFDEOH KHUH KRZHYHU ZKHUH WKH YDOLGLW\ RI D SODQ GRFXPHQW LWVHOI LV    JHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDWWKHPRYLQJSDUW\
        0F0LOODQ

LQ TXHVWLRQ                                                                 LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl)(' 5 &,9 3
     7LQVOH\Y*HQHUDO0RWRUV&RUSHWDO           1R       1R      7LQVOH\Y*HQHUDO0RWRUV&RUSHWDO          

FVHH:LOH\Y8QLWHG6WDWHV)GWK&LU               DOWHUDWLRQ LQ RULJLQDO FHUW GHQLHG  86
  7KHUH LV QR JHQXLQH LVVXH IRU WULDO XQOHVV WKH          
QRQPRYLQJSDUW\KDVSURGXFHGHQRXJKHYLGHQFHIRUDMXU\WR
EH DEOH WR UHWXUQ D YHUGLFW IRU WKDW SDUW\ 6HH $QGHUVRQ Y      ,Q WKLV FDVH 7LQVOH\jV FODLP LV IRU SD\PHQW RI (5,6$
/LEHUW\/REE\,QF86                            EHQHILWV DQG LW FRQFHUQV WKH OHJLWLPDF\ RI WKH EHQHILFLDU\
                                                                          GHVLJQDWLRQFRQWDLQHGLQWKHSODQGRFXPHQWV7KH6XSUHPH
  0RUHRYHU DOWKRXJK WKH HYLGHQFH SURGXFHG E\ WKH                   &RXUWKDVH[SODLQHG WKDWDVXLWE\DEHQHILFLDU\WRUHFRYHU
QRQPRYLQJ SDUW\ QHHG QRW QHFHVVDULO\ EH mLQ D IRUP WKDW          EHQHILWVIURPDQ(5,6$FRYHUHGSODQmIDOOVGLUHFWO\XQGHU
ZRXOGEHDGPLVVLEOHDWWULDOl&HORWH[&RUSY&DWUHWW              D%RI(5,6$>86&D%@ZKLFK
86    LW LV ZHOO HVWDEOLVKHG WKDW KHDUVD\        SURYLGHVDQH[FOXVLYHIHGHUDOFDXVHRIDFWLRQIRUUHVROXWLRQRI
HYLGHQFH FDQQRW EH FRQVLGHUHG E\ D WULDO FRXUW UXOLQJ RQ D      VXFKGLVSXWHVl0HWURSROLWDQ/LIH,QV&RY7D\ORU86
PRWLRQ IRU VXPPDU\ MXGJPHQW VHH :LOH\  )G DW           0RUHRYHUWKLVFRXUWKDVKHOGWKDWFODLPV
)HGHUDO5XOHRI&LYLO3URFHGXUHHIXUWKHUUHTXLUHVWKDW               WRXFKLQJRQWKHGHVLJQDWLRQRIDEHQHILFLDU\RIDQ(5,6$
DIILGDYLWVVXEPLWWHGLQFRQQHFWLRQZLWKDVXPPDU\MXGJPHQW                JRYHUQHG SODQ IDOO XQGHU (5,6$jV EURDG SUHHPSWLYH UHDFK
PRWLRQmVKDOOEHPDGHRQSHUVRQDONQRZOHGJHVKDOOVHWIRUWK              DQG DUH FRQVHTXHQWO\ JRYHUQHG E\ IHGHUDO ODZ  6HH HJ
VXFKIDFWVDVZRXOGEHDGPLVVLEOHLQHYLGHQFHDQGVKDOOVKRZ             0HWURSROLWDQ/LIH,QV&RY0DUVK)GWK
DIILUPDWLYHO\ WKDW WKH DIILDQW LV FRPSHWHQW WR WHVWLI\ WR WKH    &LU3UHVVOH\)GDW0F0LOODQY3DUURWW
PDWWHUVVWDWHGWKHUHLQl)(' 5 &,9 3H                          )G   WK &LU  m7KH GHVLJQDWLRQ RI
                                                                          EHQHILFLDULHVSODLQO\UHODWHVWRWKHVH(5,6$SODQVDQGZHVHH
%(5,6$3UHHPSWLRQ                                                      QRUHDVRQWRDSSO\VWDWHODZRQWKLVLVVXHl:HWKHUHIRUH
                                                                          FRQFOXGHWKDWWKHTXHVWLRQZKHWKHU7LQVOH\LVHQWLWOHGWRWKH
  $OWKRXJK WKH GLVWULFW FRXUW OLNH WKH SDUWLHV ORRNHG WR        SURFHHGV IURP :LOOLDPVjV OLIH LQVXUDQFH SODQ GXH WR WKH
0LFKLJDQVWDWHODZLQLWVGLVFXVVLRQRI7LQVOH\jVFODLPVZH              DOOHJHG IRUJHU\ RI :LOOLDPVjV VLJQDWXUH RQ WKH EHQHILFLDU\
EHOLHYHWKDWIHGHUDOODZJRYHUQVWKLVFDVHEHFDXVHLWLQYROYHV           GHVLJQDWLRQ FKDQJH IRUP RU WKH DOOHJHG H[HUFLVH RI XQGXH
DQ HPSOR\HH ZHOIDUH EHQHILW SODQ WKDW LV JRYHUQHG E\ WKH         LQIOXHQFHE\&DOORZD\LVSUHHPSWHGE\(5,6$DQGJRYHUQHG
(PSOR\HH 5HWLUHPHQW ,QFRPH 6HFXULW\ $FW m(5,6$l                E\IHGHUDOODZ&I0HWURSROLWDQ/LIH,QV&RY+DOO)
86&HWVHT  (5,6$SUHHPSWVDQ\VWDWHODZWKDW                6XSS G   ' 0G  FRQFOXGLQJ WKDW WKH
UHODWHVWRnWKDWLVWKDWmKDVDFRQQHFWLRQZLWKRUUHIHUHQFH            TXHVWLRQZKHWKHUDQ(5,6$SODQSDUWLFLSDQWZDVFRPSHWHQW
WRlnDQ(5,6$FRYHUHGSODQ6KDZY'HOWD$LU/LQHV,QF              WRFKDQJHEHQHILFLDULHVLVSUHHPSWHGE\(5,6$DQGJRYHUQHG
86VHH86&D7KH6L[WK               E\IHGHUDOODZ%XWFI(PDUGY+XJKHV$LUFUDIW&R
&LUFXLW IROORZLQJ WKH GLUHFWLRQ RI WKH 6XSUHPH &RXUW KDV        )GWK&LUKROGLQJWKDW(5,6$GRHV
HPSKDVL]HG WKH EURDG VFRSH RI (5,6$ SUHHPSWLRQ QRWLQJ             QRW SUHHPSW WKH &DOLIRUQLD ODZ RI FRQVWUXFWLYH WUXVWV DQG
WKDW mYLUWXDOO\ DOO VWDWH ODZ FODLPV UHODWLQJ WR DQ HPSOR\HH     DQDORJL]LQJWRVWDWHmVOD\HUVWDWXWHVlSUHYHQWLQJSD\PHQWRI
EHQHILWSODQDUHSUHHPSWHGE\(5,6$l&URPZHOOY(TXLFRU               OLIHLQVXUDQFHEHQHILWVWRWKHLQVXUHGjVVOD\HUVXJJHVWLQJWKDW
(TXLWDEOH+&$&RUS)GWK&LU                 VXFKVWDWXWHVZRXOGFOHDUO\QRWEHSUHHPSWHGE\(5,6$FHUW
m>$@VWDWHODZPD\µUHODWHWRjDEHQHILWSODQDQGWKHUHE\EH             GHQLHG86
SUHHPSWHG HYHQ LI WKH ODZ LV QRW VSHFLILFDOO\ GHVLJQHG WR
DIIHFWVXFKSODQVRUWKHHIIHFWLVRQO\LQGLUHFWl0HWURSROLWDQ
/LIH,QV&RY3UHVVOH\)GWK&LU
TXRWLQJ ,QJHUVROO5DQG &R Y 0F&OHQGRQ  86 