Court Opinion

ID: 2970062
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:03:20.323232+00
Date Added: 2024-06-11T15:00:24.511961
License: Public Domain

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
        5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R                        3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

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

VWDWHWKDWWKHPLQLVHULHVLVVLPLODULQQDWXUHDQGWKHUHIRUHQRW                            )LOH 1DPH DS

RXWUDJHRXV
  'HIHQGDQWVDOVRDUJXHWKDW(DUOLQH5XIILQIDLOHGWRDOOHJHLQ              81,7('67$7(6&28572)$33($/6
KHUFRPSODLQWWKDWVKHVXIIHUHGHPRWLRQDOGLVWUHVVEHFDXVHRI
KHU SRUWUD\DO DV D SURVWLWXWH DQG WKHUHIRUH KHU FODLP ZDV                         )257+(6,;7+&,5&8,7
SURSHUO\ GLVPLVVHG  (YHQ VR WKH GLVWULFW FRXUW FRQVLGHUHG                          BBBBBBBBBBBBBBBBB
(DUOLQH5XIILQjVFODLPXQGHUWKLVWKHRU\DQGGHWHUPLQHGWKDW
GHIHQGDQWVjFRQGXFWZDVQHLWKHUH[WUHPHQRURXWUDJHRXV
                                                                             &+(5</ 58)),167(,1%$&.         ;
   3ODLQWLIIVjUHSO\EULHIFLWHV0H\HUY1RWWJHU1:G                ,QGLYLGXDOO\DQGLQKHU           
,RZDDFDVHWKH\FODLPFRQWDLQVDVFHQDULRVLPLODU                                                 
WRWKHPDQQHULQZKLFKWKHPLQLVHULHVPLVUHSUHVHQWHG'DYLG                  FDSDFLW\DV3HUVRQDO
                                                                                                                   1R
5XIILQjVGHDWK0H\HUKHOGWKDWDPRUWLFLDQjVPLVKDQGOLQJRI                5HSUHVHQWDWLYHRIWKH(VWDWH      
D GHDG ERG\ LQFOXGLQJ PLVUHSUHVHQWDWLRQV WR WKH EHUHDYHG             RI'DYLV(5XIILQSND          !
                                                                                                               
IDPLO\DERXWWKHGHWDLOVRIWKHERG\jVVWDWHRIGHFRPSRVLWLRQ               'DYLG5XIILQ1('5$ 58)),1 
ZDVH[WUHPHDQGRXWUDJHRXV                                                  .,0%(5/< %2*$1 '$9,'             
  :HDJUHHZLWKWKHGLVWULFWFRXUWWKDWDVVXPLQJHDFKRIWKH                 58)),1 s5 (67$7( 2)            
LQDFFXUDFLHV GHVFULEHG LQ SODLQWLIIVj FRPSODLQWV DQG                    ($5/,1( 58)),1 s26(3+,1(         
VXEPLVVLRQV LV LQDFFXUDWH LQ WKH PDQQHU GHVFULEHG E\                  0,/(6 526( )5$1./,1             
SODLQWLIIVGHIHQGDQWVjDFWLRQVLQSURGXFLQJWKHVWRU\ZULWWHQ                                                 
                                                                                       3ODLQWLIIV$SSHOODQWV 
E\2WLV:LOOLDPVDERXWWKH7HPSWDWLRQVFDQQRWEHFRQVLGHUHG
VRH[WUHPHLQGHJUHHDVWRJREH\RQGDOOERXQGVRIGHFHQF\                                                    
                                                                                         Y                    
7KHGLVWULFWFRXUWGLGQRWHUULQJUDQWLQJVXPPDU\MXGJPHQW
RQWKHVHFODLPV                                                                                               
                                                                             68=$11( '(3$66( '(3$66(          
                       9,&21&/86,21                                       (17(57$,10(17 27,6               
                                                                                                               
                                                                             :,//,$06m7HPSWDWLRQVl          
  )LQGLQJWKHGLVWULFWFRXUWGLGQRWHUULQUXOLQJLQIDYRURI
GHIHQGDQWVRQSODLQWLIIVjFODLPVRIULJKWRISXEOLFLW\XQMXVW               6+(//< %85*(5 1$7,21$/           
HQULFKPHQW GHIDPDWLRQ DQG LQWHQWLRQDO LQIOLFWLRQ RI                   %52$'&$67,1* &203$1<             
HPRWLRQDOGLVWUHVVZH$)),50                                               ,1& '$9,' 3,&.(5               
                                                                             +$//0$5. (17(57$,10(17 
                                                                             ,QGLYLGXDOVDQGFRUSRUDWLRQV     
                                                                                                               
                                                                             MRLQWO\DQGVHYHUDOO\            
                                                                                      'HIHQGDQWV$SSHOOHHV 
                                                                                                              
      7KH mQHZVZRUWK\l FDVHV FLWHG E\ GHIHQGDQWV DUH GLVWLQJXLVKDEOH                                          1
IURP SODLQWLIIVj FLUFXPVWDQFHV EHFDXVH RI WKH IDOVLW\ DOOHJHG LQ WKH PLQL
VHULHV

                                                                                                          
        5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R          1R 5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO             

         $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW                        7KHGLVWULFWFRXUWUHFRJQL]HGWKDWSODLQWLIIVjFODLPVXQGHU
        IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW                  WKLVWKHRU\RIUHFRYHU\YDULHGVOLJKWO\IURPRQHDQRWKHUEXW
    1RVnsRKQ                     WKDWGHIHQGDQWVjDFWLRQVLQWKLVFDVHmZHUHQRWWRUWLRXVLQDQ\
                    )HLNHQV'LVWULFWsXGJH                              VHQVH DQG FHUWDLQO\ FDQQRW EH UHDVRQDEO\ FRQVLGHUHG
                                                                          RXWUDJHRXVls$GLVWULFWFRXUWjVRSLQLRQDQGRUGHURI
                     $UJXHG$XJXVW                              )HEUXDU\S$VVXPLQJWKDWWKHUHDUHLQDFFXUDFLHV
                                                                          LQWKHPLQLVHULHVDVDOOHJHGE\WKHSODLQWLIIVWKHGLVWULFWFRXUW
             'HFLGHGDQG)LOHG6HSWHPEHU                       GHWHUPLQHGWKDWWKHVHLQDFFXUDFLHVmFDQQRWEHFRQVLGHUHGVR
                                                                          H[WUHPH LQ GHJUHH DV WR JR EH\RQG DOO SRVVLEOH ERXQGV RI
    %HIRUH68+5+(,15,&+DQG6,/(5&LUFXLWsXGJHV                      GHFHQF\l,G
                 +22''LVWULFWsXGJH
                                                                            7KH5XIILQSODLQWLIIVGLVDJUHHVWDWLQJWKDWWKHPDQQHULQ
                       BBBBBBBBBBBBBBBBB                                  ZKLFK'DYLG5XIILQjVGHDWKZDVGHSLFWHGZDVVRWUDXPDWLFIRU
                                                                          WKHPWRZDWFKWKDWWKH\ODWHUUHTXLUHGPHGLFDOWUHDWPHQWDQG
                             &2816(/                                      WKHLQWHQWLRQDOPLVUHSUHVHQWDWLRQRIKLVGHDWKZDVRXWUDJHRXV
                                                                          DQGH[WUHPH)XUWKHUPRUHSODLQWLIIVDOOHJHWKDWWKHSRUWUD\DO
$5*8('  *UHJRU\ s 5HHG *5(*25< s 5((' 	                       RI(DUOLQH5XIILQDVDSURVWLWXWHDQGDQXQFKDVWHZRPDQLV
$662&,$7(6'HWURLW0LFKLJDQIRU$SSHOODQWV+HUVFKHO                  KLJKO\RIIHQVLYHWRDUHDVRQDEOHSHUVRQ+HQFHWKH\DUJXH
3)LQN+21,*0$10,//(56&+:$57=	&2+1                               WKDWWKHGLVPLVVDORIWKHLUFODLPVIRULQWHQWLRQDOLQIOLFWLRQRI
'HWURLW0LFKLJDQIRU$SSHOOHHV21%5,()*UHJRU\s                  HPRWLRQDOGLVWUHVVZDVHUURQHRXV
5HHG *5(*25< s 5((' 	 $662&,$7(6 'HWURLW
0LFKLJDQ IRU $SSHOODQWV  +HUVFKHO 3 )LQN &\QWKLD *              'HIHQGDQWV DUJXH WKDW WKH PLQLVHULHV LV VLPLODU WR
7KRPDV+21,*0$10,//(56&+:$57=	&2+1                                VWDWHPHQWV FRQWDLQHG LQ EURDGFDVWV DQG SXEOLFDWLRQV ZKLFK
'HWURLW 0LFKLJDQ *UHJRU\ 0 .RSDF] '<.(0$                         JHQHUDOO\GRQRWFRQVWLWXWHH[WUHPHRURXWUDJHRXVFRQGXFW
*266(77 3//& %ORRPILHOG +LOOV 0LFKLJDQ IRU                       6HH 5RVV Y %XUQV  )G   WK &LU
$SSHOOHHV                                                                ILQGLQJ QHZVSDSHUjV SXEOLFDWLRQ RI SKRWRJUDSK RI
                                                                          XQGHUFRYHU QDUFRWLFV RIILFHU ZDV QRW H[WUHPH DQG
                       BBBBBBBBBBBBBBBBB                                  RXWUDJHRXV)U\Y,RQLD6HQWLQHO6WDQGDUG1:G
                                                                          0LFK&W$SSILQGLQJWKDWDQDUWLFOHUHSRUWLQJWKDW
                           23,1,21                                        WKHERG\RISODLQWLIIjVKXVEDQGZDVUHPRYHGIURPDFRWWDJH
                       BBBBBBBBBBBBBBBBB                                  GHVWUR\HGE\ILUHDORQJZLWKWKHERG\RIDQRWKHUZRPDQKH
                                                                          KDGEHHQVHHQZLWKDWDORFDOEDUZDVQRWH[WUHPH7KH\
  s26(3+0+22''LVWULFWsXGJH3ODLQWLIIVDSSHDOWKH
GLVWULFW FRXUWjV GLVPLVVDO RI WKHLU FODLPV LQ WKLV WRUW DFWLRQ
EDVHGRQWKHDLULQJRIDPLQLVHULHVDERXWWKH7HPSWDWLRQV
)RUWKHUHDVRQVZKLFKIROORZZH$)),50

                                                                              
                                                                                1HLWKHU sRVHSKLQH 0LOHV QRU 5RVH )UDQNOLQ DSSHDOHG WKH JUDQW RI
     
     7KH +RQRUDEOH sRVHSK 0 +RRG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH   VXPPDU\ MXGJPHQW RQ WKHLU FODLPV RI LQWHQWLRQDO LQIOLFWLRQ RI HPRWLRQDO
(DVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ                     GLVWUHVV
    5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R         1R 5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO         

0LFKLJDQ ODZ DSSOLHV WR D FDVH XQOHVV WKHUH LV D UDWLRQDO                         ,,1752'8&7,21
UHDVRQWRGLVSODFHLW6HH6XWKHUODQGY.HQQLQJWRQ7UXFN
6HUY/WG1:G0LFK,IDIRUHLJQ             ,Q 1RYHPEHU RI  1DWLRQDO %URDGFDVWLQJ &RPSDQ\
VWDWHKDVDQLQWHUHVWLQKDYLQJLWVODZDSSOLHGDGHWHUPLQDWLRQ      m1%&l DLUHG D IRXUKRXU PLQLVHULHV GHSLFWLQJ WKH
LVPDGHZKHWKHU0LFKLJDQjVLQWHUHVWVUHTXLUHWKDW0LFKLJDQ            7HPSWDWLRQVDVUHFRXQWHGLQDQRYHOZULWWHQE\2WLV:LOOLDPV
ODZEHDSSOLHG6HHLG'HIHQGDQWVDUJXHWKDW0LFKLJDQKDV          D IRXQGLQJ PHPEHU RI WKH OHJHQGDU\ UHFRUGLQJ JURXS
QHLWKHU FRQWDFWV QRU DQ LQWHUHVW LQ KDYLQJ LWV ODZ DSSOLHG   3ODLQWLIIV LQ WKLV DFWLRQ LQFOXGH &KHU\O 5XIILQ6WHLQEDFN
EHFDXVHWKHPLQLVHULHVZDVDQDWLRQZLGHEURDGFDVW7KXV            LQGLYLGXDOO\DQGDVUHSUHVHQWDWLYHRIWKHHVWDWHRI'DYLV(
WKH\DVVHUWWKDWWKHRQO\VWDWHZLWKDQLQWHUHVWLQWKLVFODLPLV     5XIILQOHDGVLQJHURIWKHJURXSIURPWRZKRZDV
WKDWRI0LVVLVVLSSL(DUOLQH5XIILQjVGRPLFLOH                       NQRZQ SURIHVVLRQDOO\ DV 'DYLG 5XIILQ 1HGUD 5XIILQ
                                                                      .LPEHUO\%RJDQDQG'DYLG5XIILQsUWKHFKLOGUHQRI'DYLV
  0RUHRYHU GHIHQGDQWV DUJXH WKDW HYHQ LI $ODEDPD ODZ          5XIILQ (DUOLQH 5XIILQ WKH PRWKHU RI 'DYLV 5XIILQ 5RVH
DSSOLHGUDWKHUWKDQWKDWRI0LVVLVVLSSLWKHGHIDPDWLRQFODLP        )UDQNOLQ WKH PRWKHU RI 0HOYLQ )UDQNOLQ D PHPEHU RI WKH
ZDVSURSHUO\GLVPLVVHG6SHFLILFDOO\WKH\SRLQWWR$OD&RGH        JURXSsRVHSKLQH0LOHVWKHILUVWZLIHRI2WLV:LOOLDPVDQG
ZKLFKSURYLGHVWKDWLQMXULHVWRRQHjVUHSXWDWLRQGR         sRKQQLH0DH0DWKHZVWKHILUVWDJHQWRIWKH7HPSWDWLRQV
QRWVXUYLYHDGHFHDVHGSODLQWLII6HHDOVR)LWFKY9RLW
6RG$OD                                          3ODLQWLIIVKDYHDSSHDOHGRQO\WKHLUVWDWHODZWRUWFODLPVIRU
                                                                      YLRODWLRQ RI WKH ULJKW RI SXEOLFLW\ XQMXVW HQULFKPHQW
  7KHGHDWKFHUWLILFDWHLVVRPHZKDWFRQIXVLQJDVWRZKHWKHU           GHIDPDWLRQDQGLQWHQWLRQDOLQIOLFWLRQRIHPRWLRQDOGLVWUHVV
(DUOLQH 5XIILQ ZDV GRPLFLOHG LQ 0LVVLVVLSSL RU $ODEDPD         DJDLQVW 'HIHQGDQWV GH3DVVH (QWHUWDLQPHQW 1%& 'DYLG
ZKHQVKHGLHG+RZHYHUKHUFRPSODLQWLQGLFDWHVWKDWVKH             3LFNHU DQG +DOOPDUN (QWHUWDLQPHQW ,QF  'HIHQGDQWV
ZDVDUHVLGHQWRI0HULGLDQ0LVVLVVLSSLDWWKHWLPHWKLVFDVH         6X]DQQH GH3DVVH 2WLV :LOOLDPV 6KHOO\ %HUJHU DQG
EHJDQ6HHs$5XIILQSODLQWLIIVjFRPSODLQWS        &KDUDFWHUV8QOLPLWHGZHUHQHYHUVHUYHGZLWKWKHFRPSODLQW
7KHGLVWULFWFRXUWGLGQRWHUULQGHWHUPLQLQJWKDW0LFKLJDQODZ       DQGKDYHEHHQGLVPLVVHGIURPWKLVFDVH
GLGQRWDSSO\WRKHUFDXVHRIDFWLRQDQGXQGHU0LVVLVVLSSL
ODZ (DUOLQH 5XIILQjV GHIDPDWLRQ FODLP ZDV SURSHUO\                                         ,,,668(6
GLVPLVVHG$VVXPLQJ$ODEDPDODZDSSOLHVWKHUHVXOWZRXOG
QRWFKDQJH                                                             :KHWKHUWKHGLVWULFWFRXUWSURSHUO\GLVPLVVHGSODLQWLIIVj
                                                                      FODLPVIRUYLRODWLRQRIWKHLUULJKWVRISXEOLFLW\RUFRPPHUFLDO
',QWHQWLRQDOLQIOLFWLRQRIHPRWLRQDOGLVWUHVV                      DSSURSULDWLRQDVDPDWWHURIODZ
  8QGHU 0LFKLJDQ ODZ D SULPD IDFLH FDVH IRU LQWHQWLRQDO         :KHWKHU WKH GLVWULFW FRXUW SURSHUO\ IRXQG SODLQWLIIVj
LQIOLFWLRQ RI HPRWLRQDO GLVWUHVV UHTXLUHV WKH IROORZLQJ         FODLPVRIXQMXVWHQULFKPHQWLQVXIILFLHQWDVDPDWWHURIODZ
HOHPHQWVmH[WUHPHDQGRXWUDJHRXVFRQGXFWLQWHQWRU
UHFNOHVVQHVV  FDXVDWLRQ DQG  VHYHUH HPRWLRQDO             :KHWKHU WKH GLVWULFW FRXUW SURSHUO\ IRXQG (DUOLQH
GLVWUHVVl$QGUHZVY3UXGHQWLDO6HFV,QF)G          5XIILQjVFODLPRIGHIDPDWLRQIDLOHGWRVXUYLYHKHUGHDWKDVD
WK&LU0LFKLJDQODZGRHVQRWSHUPLWUHFRYHU\           PDWWHURIODZ
ZKHQmPHUHLQVXOWVLQGLJQLWLHVRURWKHUWULYLDOLWLHVlRFFXUDV
WKHUHmLVQRRFFDVLRQIRUWKHODZWRLQWHUYHQHLQHYHU\FDVH
ZKHUHVRPHRQHjVIHHOLQJVDUHKXUWl5REHUWVY$XWR2ZQHUV              
                                                                           7KH GLVWULFW FRXUW SHUPLWWHG sRKQQLH 0DH 0DWKHZVjV FODLPV RI
,QV&R1:G0LFK                           GHIDPDWLRQ DQG IDOVH OLJKW LQYDVLRQ RI SULYDF\ WR SURFHHG
       5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R          1R 5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO                 

   :KHWKHU WKH GLVWULFW FRXUW SURSHUO\ IRXQG WKH 5XIILQ       &'HIDPDWLRQ
SODLQWLIIVjFODLPVRILQWHQWLRQDOLQIOLFWLRQRIHPRWLRQDOGLVWUHVV
ZHUHLQVXIILFLHQWDVDPDWWHURIODZ                                      2QO\3ODLQWLII(DUOLQH5XIILQDSSHDOVWKHGLVPLVVDORIKHU
                                                                         FODLPRIGHIDPDWLRQ7KLVFODLPLVEDVHGRQWKHUHPDUNE\
                      ,,,%$&.*5281'                                   WKH DFWRU SRUWUD\LQJ KHU VRQ WKDW KH ZDV JLYHQ WR D SLPS
                                                                         EHFDXVHKLVPRWKHURZHGWKHSLPSPRQH\1RWLQJWKDWWKH
   7KHPLQLVHULHVDWLVVXHLQWKLVFDVHUHODWHVWKHVWRU\RIWKH        5HVWDWHPHQW 6HFRQG RI &RQIOLFW RI /DZV   FPW H
7HPSWDWLRQVIURPWKHJURXSjVEHJLQQLQJXQWLOWKHSUHVHQWDQG             VXJJHVWVWKDWmLQWKHFDVHRIPXOWLVWDWHSXEOLFDWLRQRI
LV EDVHG RQ D QRYHO ZULWWHQ E\ 2WLV :LOOLDPV  ,W GHWDLOV     GHIDPDWRU\PDWHULDOSODLQWLIIjVGRPLFLOHZLOORUGLQDULO\EHWKH
SRUWLRQVRIWKHOLYHVRILWVPHPEHUVWKHLUIDPLOLHVDQGWKRVH          VWDWHZLWKWKHJUHDWHVWLQWHUHVWLQKDYLQJLWVODZDSSOLHG>@lWKH
KDYLQJ EXVLQHVV UHODWLRQVKLSV ZLWK WKH 7HPSWDWLRQV  2QO\         GLVWULFWFRXUWGHWHUPLQHGWKDWWKHODZRI0LVVLVVLSSLZKHUH
:LOOLDPV ZDV FRPSHQVDWHG IRU WKH PLQLVHULHV DQG WKH             (DUOLQH5XIILQZDVGRPLFLOHGZDVDSSOLFDEOHWRKHUFODLP
SODLQWLIIVDOOHJHWKDWDQ\XVHRIWKHLUOLNHQHVVHVWKURXJKDFWRU         6HHs$GLVWULFWFRXUWjVRSLQLRQDQGRUGHURI)HEUXDU\
SRUWUD\DOVZDVZLWKRXWWKHLUSHUPLVVLRQ7KHDLULQJZDVVR               S   0LVVLVVLSSL ODZ DV RXWOLQHG LQ &DWFKLQJV Y
VXFFHVVIXO WKDW YLGHR FDVVHWWHV RI WKH PLQLVHULHV ZHUH           +DUWPDQ6R0LVVGRHVQRWSHUPLWWKLVW\SH
DYDLODEOHIRUSXUFKDVHRUUHQWDO                                        RIFDXVHRIDFWLRQWRVXUYLYHDSODLQWLIIjVGHDWKHYHQLIWKH
                                                                         FDVH ZDV ILOHG SULRU WR WKH GHDWK RI WKH SODLQWLII  %HFDXVH
  3ODLQWLIIV ILOHG WKUHH FRPSODLQWV LQ 0LFKLJDQ VWDWH FRXUW      (DUOLQH5XIILQSDVVHGDZD\RQ$XJXVWWKHGLVWULFW
DQGWKHDFWLRQZDVUHPRYHGE\GHIHQGDQWVWRIHGHUDOFRXUW              FRXUW JUDQWHG GHIHQGDQWVj PRWLRQ WR GLVPLVV KHU FODLP RI
7KH5XIILQVj FRPSODLQWREMHFWHGWRWKHGHSLFWLRQRI'DYLG               GHIDPDWLRQ
5XIILQjVILQDOPRPHQWVLQWKHPLQLVHULHVLQZKLFKKLVEHDWHQ
ERG\ ZDV WKURZQ IURP D PRYLQJ FDU LQ IURQW RI D KRVSLWDO         7KH 5XIILQ SODLQWLIIV DUJXH WKDW (DUOLQH 5XIILQjV GHDWK
ZKHUH KH GLHV  $FFRUGLQJ WR WKH PLQLVHULHV KLV ERG\          FHUWLILFDWHLQGLFDWHVVKHGLHGLQ$ODEDPDDQGWKDWVKHZDVD
UHPDLQHGXQFODLPHGLQDPRUJXHIRUDZHHNDIWHUKLVGHDWK               IRUPHUUHVLGHQWRI0LVVLVVLSSL6HHs$(DUOLQH5XIILQjV
3ODLQWLIIVVWDWHWKDWKHZDVWDNHQWRWKHKRVSLWDOE\DOLPRXVLQH        GHDWKFHUWLILFDWH7KHUHIRUHLWLVDVVHUWHGWKDW$ODEDPDODZ
DQG ZDV HVFRUWHG WR WKH ZDLWLQJ DUHD E\ KLV GULYHU ZKR         LVDSSOLFDEOHWRKHUFDVH
LQIRUPHGWKHDWWHQGDQWVRIKLVLGHQWLW\7KH5XIILQFKLOGUHQ
IXUWKHUVWDWHWKDWKLVERG\ZDVFODLPHGE\RQHRIWKHPZLWKLQ               .OD[RQ&RY6WHQWRU(OHF0IJ&R,QF86
DIHZGD\VDIWHUKLVGHDWK7KHFKLOGUHQDOVRREMHFWWRWKH             KROGVWKDWLQGLYHUVLW\FDVHVWKHFKRLFHRIODZ
SRUWUD\DO RI 'DYLG 5XIILQ LQ WKH PLQLVHULHV DV VLQJOH DQG      UXOHVDSSOLHGE\WKHIHGHUDOFRXUWPXVWFRQIRUPWRWKRVHRIWKH
FKLOGOHVVZKLOHDOOWKHRWKHUPHPEHUVRIWKH7HPSWDWLRQVZHUH            VWDWHLQZKLFKLWVLWV0LFKLJDQjVFKRLFHRIODZUXOHDVQRWHG
VKRZQZLWKZLYHVDQGFKLOGUHQ(DUOLQH5XIILQDOOHJHVVKH               E\ GHIHQGDQWV SURYLGHV WKDW WKHUH LV D SUHVXPSWLRQ WKDW
ZDVIDOVHO\SRUWUD\HGDVDSURVWLWXWHEHFDXVH'DYLG5XIILQjV

                                                                             
                                                                              ,Q WKH GLVWULFW FRXUW WKH 5XIILQ SODLQWLIIV DUJXHG WKDW WKH PRUH
                                                                         IDYRUDEOH 0LFKLJDQ ODZ DSSOLHG EHFDXVH VHYHUDO RI (DUOLQH 5XIILQjV
                                                                         SURVSHFWLYH KHLUV ZHUH UHVLGHQWV RI 0LFKLJDQ 7KH GLVWULFW FRXUW KHOG WKDW
                                                                         m>V@XFK DQ LQWHUHVW LV WRR UHPRWH WR RXWZHLJK 0LVVLVVLSSLjV WUDGLWLRQDO

                                                                        LQWHUHVW LQ KDYLQJ LWV ODZ DSSOLHG WR GHIDPDWLRQ UHJDUGLQJ LWV UHVLGHQWVl
     sRVHSKLQH 0LOHV DQG 5RVH )UDQNOLQ HDFK ILOHG VHSDUDWH FRPSODLQWV   s$  GLVWULFW FRXUWjV RSLQLRQ DQG RUGHU RI )HEUXDU\   S 
ZKLOH WKH 5XIILQV ILOHG D MRLQW FRPSODLQW                               7KLV DUJXPHQW LV QRW UHYLYHG RQ DSSHDO
     5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R              1R 5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO               

SXUSRVHV ZKLFK LV GLVWLQJXLVKHG IURP D SXEOLF LQWHUHVW             FKDUDFWHULQGLFDWHGWKDWKHZDVJLYHQWRDSLPSE\KLVPRWKHU
SXEOLFDWLRQ6HH3DOODVY&URZOH\0LOQHU	&R1:G               WRVHWWOHDGHEW
0LFKUHFRJQL]LQJmDIXQGDPHQWDOGLIIHUHQFH
EHWZHHQWKHXVHRIDSHUVRQjVSKRWRJUDSKLFOLNHQHVVlIRUD                   5RVH)UDQNOLQGLVSXWHVWKHPDQQHULQZKLFKWKHPLQLVHULHV
QHZVZRUWK\ SXUSRVH DQG D FRPPHUFLDO XVH VXFK DV DQ                 GHSLFWHGWKHILQDOGD\VRIKHUVRQ0HOYLQ6KHVWDWHVWKDW
DGYHUWLVHPHQW7KHUHIRUHGHIHQGDQWVVWDWHWKDWFRQVHQWRU               UDWKHUWKDQEHLQJFRQILQHGWRDZKHHOFKDLUDQGG\LQJLQKHU
SHUPLVVLRQ IURP SODLQWLIIV ZDV QRW UHTXLUHG DQG SODLQWLIIV         KRPHKHUVRQGLHGLQKLVVOHHSDWKLVKRPHLQ&DOLIRUQLD
KDYHFLWHGQROHJDODXWKRULW\WRVXSSRUWWKHLUFODLPV
                                                                             sRVHSKLQH 0LOHV GLVDJUHHV ZLWK WKH ZD\ WKH PLQLVHULHV
   7KHUHLVUHODWLYHO\QRFDVHODZFLWHGE\SODLQWLIIVWRVXSSRUW          SRUWUD\HGKHUH[KXVEDQG2WLV:LOOLDPVDVDEHWWHUIDWKHUDQG
WKHLUFODLPVDQGWKHLUDUJXPHQWXQGHUWKLVWRUWLVYHU\ZHDN             KXVEDQGWKDQKHZDV6KHIHHOVWKLVJLYHVKHUOHVVFUHGLWIRU
7KHPDMRULW\RIFDVHVZKLFKGLVFXVV WKHULJKWRISXEOLFLW\               WKHUDLVLQJRIWKHLUVRQ6KHDOVRREMHFWVWRWKHLPSOLFDWLRQ
LQFOXGLQJ &DUVRQ IURP WKLV FLUFXLW IRFXV RQ WKH SHFXQLDU\         WKDWVKHZDVLQYROYHGZLWKDQRWKHUPDQGXULQJKHUPDUULDJH
LQWHUHVW LQ RQHjV LGHQWLW\  :H FRQFOXGH WKDW WKH XVH RI         WR:LOOLDPV
SODLQWLIIVjILFWLRQDOL]HGOLNHQHVVHVLQDZRUNSURWHFWHGE\WKH
)LUVW$PHQGPHQWDQGWKHDGYHUWL]LQJLQFLGHQWDOWRVXFKXVHV                  'HIHQGDQWV ILOHG PRWLRQV WR GLVPLVV WKH FRPSODLQWV
GLG QRW JLYH ULVH WR D FODLP IRU UHOLHI XQGHU WKH SODLQWLIIVj   SXUVXDQWWR)HG5&LY3EZKLFKZHUHIROORZHGE\
ULJKWVRISXEOLFLW\IRUWKHUHDVRQVVWDWHGE\WKHGLVWULFWFRXUW          VHYHUDOKHDULQJVZKHUHLQWKHSDUWLHVVXEPLWWHGGRFXPHQWDU\
                                                                           HYLGHQFH LQ VXSSRUW RI WKHLU SRVLWLRQV  7KH GLVWULFW FRXUW
%8QMXVWHQULFKPHQW                                                      FRQVLGHUHG WKLV HYLGHQWLDU\ PDWHULDO LQ UXOLQJ RQ VRPH RI
                                                                           SODLQWLIIVFODLPVUHVXOWLQJLQGLVPLVVDORIWKHLUFODLPVXQGHU
  %DVHGRQWKHDYHUPHQWVLQWKHFRPSODLQWVWKHGLVWULFWFRXUW             )HG 5 &LY 3 E DQG )HG 5 &LY 3 F WKH
IRXQGSODLQWLIIVjFODLPVRIXQMXVWHQULFKPHQWWREHGXSOLFDWLYH            VXPPDU\MXGJPHQWVWDQGDUG
RUGHULYDWLYHRIWKHLUULJKWRISXEOLFLW\FODLPVDQGGLVPLVVHG
WKHPUHIHUHQFLQJWKHUHDVRQVJLYHQIRUGLVPLVVDORIWKHULJKW                             ,967$1'$5'62)5(9,(:
RISXEOLFLW\FODLPV3ODLQWLIIVGHFOLQHWRRIIHUDGLVWLQFWLRQ
EHWZHHQ WKH FODLPV DQG LQVWHDG UHIHU WR WKHLU DUJXPHQWV              7KLV FRXUW UHYLHZV GH QRYR D GLVWULFW FRXUWjV GLVPLVVDO
VXSSRUWLQJWKHLUULJKWRISXEOLFLW\FODLPVDVWRZK\WKHGLVWULFW          XQGHU)HG5&LY3E6HH9DUOMHQY&OHYHODQG*HDU
FRXUWHUUHGLQJUDQWLQJGHIHQGDQWVjPRWLRQVWRGLVPLVV                   &R,QF)GWK&LU7KHFRXUWPXVW
                                                                           mFRQVLGHU DV WUXH WKH ZHOOSOHDGHG DOOHJDWLRQV RI WKH
   $UHYLHZRIWKHFRPSODLQWVLQWKLVFDVHLQGLFDWHVWKDWWKH              FRPSODLQWDQGFRQVWUXH>@WKHPLQWKHOLJKWPRVWIDYRUDEOHWR
DOOHJDWLRQVXQGHUWKHULJKWRISXEOLFLW\FODLPVDQGWKHXQMXVW             WKHSODLQWLII>V@l,G
HQULFKPHQW FODLPV DUH GXSOLFDWLYH  7KH 5XIILQ SODLQWLIIVj
FRPSODLQW HYHQ XVHV WKH SKUDVH mHQULFK WKHPVHOYHV                      $JUDQWRIVXPPDU\MXGJPHQWE\WKHGLVWULFWFRXUWLVDOVR
XQMXVWLILDEO\l LQ GLVFXVVLQJ WKHLU ULJKW RI SXEOLFLW\ FODLPV       UHYLHZHG GH QRYR %URG\ Y &LW\ RI 0DVRQ  )G 
s$5XIILQVjFRPSODLQWS)LQGLQJQRHUURULQ             WK&LUZLWKDOOHYLGHQFHYLHZHGmLQWKHOLJKW
WKH GLVWULFW FRXUWjV UHVROXWLRQ RI WKH SODLQWLIIVj ULJKW RI        PRVWIDYRUDEOHWRWKHSDUW\RSSRVLQJVXPPDU\MXGJPHQW>@l
SXEOLFLW\ FODLPV ZH OLNHZLVH ILQG QR HUURU LQ WKH GLVWULFW
FRXUWjV WUHDWPHQW RI WKH SODLQWLIIVj FODLPV RI XQMXVW
HQULFKPHQW                                                                    
                                                                                (DUOLQH 5XIILQ ZDV D PLQLVWHUjV ZLIH DQG VFKRRO WHDFKHU IRU IRUW\
                                                                           \HDUV   6KH UDLVHG 'DYLG 5XIILQ EXW ZDV QRW KLV ELRORJLFDO PRWKHU
     5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO 1R           1R 5XIILQ6WHLQEDFNHWDOYGH3DVVHHWDO             

:KLWHjV/DQGLQJ)LVKHULHV,QFY%XFKKRO]HU)G                7KHGLVWULFWFRXUWDOVRIRFXVHGRQ0DWWKHZVY:R]HQFUDIW
WK&LU6XPPDU\MXGJPHQWLVDSSURSULDWHRQO\              )GWK&LULQZKLFKDQH[KXVEDQGDOOHJHG
ZKHUHWKHUHDUHmQRLVVXHVRIPDWHULDOIDFWSUHVHQWDQGWKH             PLVDSSURSULDWLRQRIKLVQDPHDQGOLNHQHVVE\KLVH[ZLIHDQG
PRYLQJSDUW\LVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZl,G          D PRYLH VWXGLR ZKHQ HYHQWV RI KLV OLIH DV D SROLFH RIILFHU
DW                                                                 VRPHRIZKLFKZHUHILFWLRQDOL]HGZHUHVROGDVPRYLHULJKWV
                                                                        +LVFODLPIRUYLRODWLRQRIKLVULJKWRISXEOLFLW\ZDVGHQLHGE\
                       9',6&866,21                                   WKH)LIWK&LUFXLWZKLFKKHOGWKDWWKHWHUPmµOLNHQHVVjGRHVQRW
                                                                        LQFOXGHJHQHUDOLQFLGHQWVIURPDSHUVRQjVOLIHHVSHFLDOO\ZKHQ
   %HFDXVHWKLVLVDGLYHUVLW\DFWLRQUHPRYHGIURP0LFKLJDQ             ILFWLRQDOL]HG7KHQDUUDWLYHRIDQLQGLYLGXDOjVOLIHVWDQGLQJ
VWDWHFRXUWWKHGLVWULFWFRXUWDSSOLHG0LFKLJDQODZWRDOORI          DORQH ODFNV WKH YDOXH RI D QDPH RU OLNHQHVV WKDW WKH
SODLQWLIIVjFODLPVH[FHSWIRUWKHGHIDPDWLRQFODLPDVVHUWHGE\          PLVDSSURSULDWLRQWRUWSURMHFWVl,GDW$VLPLODUFODLP
(DUOLQH5XIILQ                                                        EURXJKWE\DIRUPHU%ODFN3DQWKHUDJDLQVWWKHSURGXFHUVRID
                                                                        ILOP GHSLFWLQJ D ILFWLRQDOL]HG DFFRXQW RI KLV OLIH VWRU\ ZDV
$5LJKWRISXEOLFLW\                                                  UHMHFWHGLQ6HDOHY*UDPHUF\3LFWXUHV)6XSS('
                                                                        3D
   7KH ULJKW RI SXEOLFLW\ LV GHILQHG DV mDQ DSSURSULDWLRQ RI
RQHjV QDPH RU OLNHQHVV IRU WKH GHIHQGDQWjV DGYDQWDJHl             3ODLQWLIIV DUJXH WKDW WKH GLVWULFW FRXUW PLVLQWHUSUHWV WKHLU
&DUVRQY+HUHjVsRKQQ\3RUWDEOH7RLOHWV,QF)G           SRVLWLRQDQGKDVUHGXFHGWKHLUFODLPVWRWKHQDUURZQRWLRQ
WK&LU7KHSXUSRVHRIWKLVULJKWLVmWRSURWHFW          WKDW WKH GHIHQGDQWV RQO\ GHSLFWHG WKHLU OLIH VWRULHV ZLWKRXW
WKHFRPPHUFLDOLQWHUHVWRIFHOHEULWLHVLQWKHLULGHQWLWLHV>@lLG     WKHLUFRQVHQW7KH\DOOHJHWKDWWKHLUOLIHVWRULHVZHUHQRWWROG
DWDVm>W@KHIDPRXVKDYHDQH[FOXVLYHOHJDOULJKWGXULQJ           LQWKHPLQLVHULHVEXWLQVWHDGWKHLULGHQWLWLHV ZHUHXVHGDV
OLIH WR FRQWURO DQG SURILW IURP WKH FRPPHUFLDO XVH RI WKHLU   FRORUIXO SURSV WR PDNH 2WLV :LOOLDPVjV OLIH VWRU\ PRUH
QDPHDQGSHUVRQDOLW\>@lLGTXRWLQJ0HPSKLV'HY)RXQG               HQWHUWDLQLQJDQGDSSHDOLQJ3ODLQWLIIVVWDWHWKDWWKLVFRXUWjV
Y)DFWRUV(WF,QF)GWK&LU              KROGLQJ LQ &DUVRQ Y +HUHjV sRKQQ\ 3RUWDEOH 7RLOHWV ,QF
                                                                        SURYLGHVWKHPZLWKUHOLHIDQGWKDWWKHGLVWULFWFRXUWHUUHGE\
  7KHGLVWULFWFRXUWUHMHFWHGSODLQWLIIVjFODLPVRIYLRODWLRQRI        GLVPLVVLQJWKHLUFODLPVIRUIDLOXUHWRVWDWHDFDXVHRIDFWLRQ
WKHLUULJKWVRISXEOLFLW\RQWKHEDVLVWKDWGHSLFWLQJRQHjVOLIH
VWRU\ ZLWKRXW KLV RU KHU SHUPLVVLRQ GLG QRW FRQVWLWXWH D          'HIHQGDQWV DVVHUW WKDW WKH )LUVW $PHQGPHQW GHIHDWV
YLRODWLRQRIWKHULJKWRISXEOLFLW\XQGHU0LFKLJDQODZ6HH            SODLQWLIIVjULJKWRISXEOLFLW\FODLPVEHFDXVHWKHPLQLVHULHVLV
s$  GLVWULFW FRXUWjV RSLQLRQ DQG RUGHU RI )HEUXDU\     D PRYLH FRQFHUQLQJ D PXVLFDO JURXS ZKHUH WKHUH LV SXEOLF
S$WWKHWLPHRIWKLVUXOLQJWKH0LFKLJDQ6XSUHPH          LQWHUHVWDQGLVQRWDFRPPHUFLDODGYHUWLVHPHQWIRUWKHVDOHRI
&RXUW KDG QRW DGGUHVVHG WKLV WRUW DQG WKH ORZHU 0LFKLJDQ      JRRGV  'HIHQGDQWV DUJXH WKDW WKH )LUVW $PHQGPHQW EDUV
FRXUWVKDGRQO\QRWHGWKDWLWZDVDPRQJWKHW\SHVRImLQYDVLRQ          FODLPVIRUULJKWRISXEOLFLW\ZKHUHWKHSXEOLFDWLRQLVDPDWWHU
RI SULYDF\l ULJKWV UHFRJQL]HG XQGHU 0LFKLJDQ ODZ  ,Q           RI SXEOLF LQWHUHVW DQG WKDW LW KDV ORQJ EHHQ VHWWOHG WKDW
GUDZLQJWKLVFRQFOXVLRQWKHGLVWULFWFRXUWUHOLHGLQSDUWRQWKH       mPRWLRQSLFWXUHVDUHDIRUPRIH[SUHVVLRQSURWHFWHGE\WKH
5HVWDWHPHQW7KLUGRI8QIDLU&RPSHWLWLRQZKLFKQRWHGLQ                )LUVW$PHQGPHQWl5RJHUVY*ULPDOGL )6XSS
WKDWXVHRILGHQWLW\mIRUWKHSXUSRVHVRIWUDGHGRHVQRW           6'1<
RUGLQDULO\ LQFOXGH WKH XVH RI D SHUVRQjV LGHQWLW\ LQ QHZV
UHSRUWLQJ FRPPHQWDU\ HQWHUWDLQPHQW ZRUNV RI ILFWLRQ RU          'HIHQGDQWV QRWH WKDW ERWK WKH 5HVWDWHPHQW 7KLUG DQG
QRQILFWLRQRULQDGYHUWLVLQJWKDWLVLQFLGHQWDOWRVXFKXVHVl         &DUVRQ IRFXV RQ LGHQWLW\ DSSURSULDWLRQ IRU FRPPHUFLDO