Court Opinion

ID: 2970621
Source: CourtListenerOpinion
Date Created: 2015-09-22 16:17:53.038767+00
Date Added: 2024-06-11T13:15:07.119995
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

 52%(57 1 :$//,1                 ;
           3ODLQWLII$SSHOOHH      
                                    
                                      1R
            Y                      
                                     !
                                    
 6,/$6 1250$1HWDO              
        'HIHQGDQWV$SSHOODQWV 
                                    
                                    
                                   1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW
    1Rn9LFWRULD$5REHUWV'LVWULFWsXGJH
                  $UJXHG'HFHPEHU
              'HFLGHGDQG)LOHGsDQXDU\
        %HIRUH1255,6DQG*,/0$1&LUFXLWsXGJHV
                 0F.($*8('LVWULFWsXGJH
                       BBBBBBBBBBBBBBBBB
                             &2816(/
$5*8('  .HYLQ 5 +LPHEDXJK 2)),&( 2) 7+(
$77251(< *(1(5$/ &255(&7,216 ',9,6,21

    
     7KH +RQRUDEOH 'DYLG : 0F.HDJXH 8QLWHG 6WDWHV 'LVWULFW sXGJH
IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

                                   
     :DOOLQY1RUPDQHWDO                       1R

/DQVLQJ 0LFKLJDQ IRU $SSHOODQWV  0DUJDUHW $ &RVWHOOR
'<.(0$ *266(77 'HWURLW 0LFKLJDQ IRU $SSHOOHH
21 %5,()  .HYLQ 5 +LPHEDXJK 2)),&( 2) 7+(
$77251(< *(1(5$/ &255(&7,216 ',9,6,21
/DQVLQJ 0LFKLJDQ IRU $SSHOODQWV  0DUJDUHW $ &RVWHOOR
'<.(0$*266(77'HWURLW0LFKLJDQIRU$SSHOOHH
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  521$/'/((*,/0$1&LUFXLWsXGJH5REHUW1:DOOLQ
ZDV LQFDUFHUDWHG DW WKH 6RXWKHUQ 0LFKLJDQ 3ULVRQ IURP
0DUFKXQWLO)HEUXDU\+HFODLPVWKDWKH
ZDVGHQLHGSURSHUPHGLFDOWUHDWPHQWZKLOHLQSULVRQDQGWKDW
WKRVHUHVSRQVLEOHIRUKLVDOOHJHGO\LQDGHTXDWHPHGLFDOFDUH
ZHUHGHOLEHUDWHO\LQGLIIHUHQWWRKLVVHULRXVPHGLFDOQHHGVDOO
LQ YLRODWLRQ RI WKH (LJKWK $PHQGPHQW  +H VXHG SULVRQ
RIILFLDOV 'U 7LPRWK\ 3 %DUWK sDPHV %RUWRQ 'U 5DQGDOO
%URZQ (ULF sDFREVRQ 'DYLG /DQGHQEXUJHU 'U 6LODV
1RUPDQDQG/HRQDUG3DZORZVNL7KHSULVRQRIILFLDOVILOHG
DPRWLRQWRGLVPLVVDQGRUIRUVXPPDU\MXGJPHQWDVVHUWLQJ
TXDOLILHGLPPXQLW\DVDGHIHQVH7KHLUPRWLRQWRGLVPLVVZDV
GHQLHGDQGWKHGLVWULFWFRXUWGHFOLQHGWRDGGUHVVWKHPHULWVRI
WKHLUVXPPDU\MXGJPHQWPRWLRQSHQGLQJWKHFRPSOHWLRQRI
GLVFRYHU\)RUWKHUHDVRQVVHWIRUWKEHORZZH$)),50WKH
GHFLVLRQRIWKHGLVWULFWFRXUWUHJDUGLQJWKHPRWLRQWRGLVPLVV
EXW5(9(56(LWVGHFLVLRQWRGHIHUDUXOLQJRQWKHPRWLRQIRU
VXPPDU\MXGJPHQWDQG5(0$1'IRUIXUWKHUSURFHHGLQJV
FRQVLVWHQWZLWKWKLVRSLQLRQ
                      ,%$&.*5281'
$ )DFWXDOEDFNJURXQG
   :DOOLQVXIIHUHGIURPVHYHUDOPHGLFDOFRQGLWLRQVZKLOHLQ
SULVRQ7ZRRIWKHVHDLOPHQWVLQSDUWLFXODUDUHWKHVXEMHFWRI
KLV FRPSODLQW  7KH ILUVW VXFK DLOPHQW ZDV D XULQDU\ WUDFW
LQIHFWLRQ,QKLVIRXUWKDPHQGHGFRPSODLQWZKLFKLVWKHRQH
DWLVVXHLQWKLVDSSHDO:DOOLQDOOHJHVWKDWKHILUVWUHSRUWHGKLV
    :DOOLQY1RUPDQHWDO                     1R      1R                       :DOOLQY1RUPDQHWDO        

                   ,,,&21&/86,21                              V\PSWRPVDQGVLJQHGXSIRUmVLFNFDOOlRQ1RYHPEHU
                                                                    $OWKRXJKKHZDVVHHQE\'U%URZQRQ1RYHPEHU:DOOLQ
  )RU DOO RI WKH UHDVRQV VHW IRUWK DERYH ZH $)),50 WKH   DOOHJHV WKDW KH ZDV QRW VHHQ E\ KLV SULPDU\ SK\VLFLDQ 'U
GHFLVLRQRIWKHGLVWULFWFRXUWUHJDUGLQJWKHPRWLRQWRGLVPLVV     %DUWKXQWLO1RYHPEHU+HZDVGLDJQRVHGDQGWUHDWHGIRU
EXW5(9(56(LWVGHFLVLRQWRGHIHUDUXOLQJRQWKHPRWLRQIRU        HSLGLG\PLWLVDQGDQHQODUJHGWHVWLFOH:DOOLQDOOHJHVWKDWKH
VXPPDU\MXGJPHQWDQG5(0$1'IRUIXUWKHUSURFHHGLQJV                 GHYHORSHG D ORZ VSHUP FRXQW DQG KDG VHYHUH SDLQ GXULQJ
FRQVLVWHQWZLWKWKLVRSLQLRQ                                       LQWHUFRXUVHDVDUHVXOWRIWKHLQDGHTXDWHPHGLFDOWUHDWPHQW
                                                                       +LVVHFRQGPDMRUPHGLFDOFRPSODLQWFRQFHUQVDQLQMXU\WKDW
                                                                    KHVXVWDLQHGWRKLVOHJDQGDQNOHIURPIDOOLQJWKURXJKDVHWRI
                                                                    EOHDFKHUVLQWKHSULVRQ\DUGRQ$SULO:DOOLQDOOHJHV
                                                                    WKDWKHZDVIRUFHGE\2IILFHU/DQGHQEXUJHUWRUHPDLQLQWKH
                                                                    SULVRQ \DUG IRU WKH UHPDLQLQJ EORFN RI WLPH DOORFDWHG IRU
                                                                    H[HUFLVHDQGWKDWKHZDVGHQLHGDSDVVWRJRWRWKHPHGLFDO
                                                                    FOLQLFDQGQXUVHVjVWDWLRQE\6HUJHDQW%RUWRQDIWHUUHWXUQLQJ
                                                                    WRKLVFHOOEORFN$OWKRXJKLWLVXQFOHDUZKDWFRXUVH:DOOLQjV
                                                                    WUHDWPHQWWRRNKHVXIIHUHGDQLQIHFWLRQLQKLVOHJDVDUHVXOW
                                                                    RIWKHLQMXU\WKDWSODJXHGKLPWKURXJKRXWKLVLPSULVRQPHQW
                                                                    :DOOLQFRQWLQXHGWRUHFHLYHRQJRLQJPHGLFDOWUHDWPHQWIRUKLV
                                                                    LQMXULHVXQWLOKLVGHDWKDSSUR[LPDWHO\WZRZHHNVEHIRUHWKLV
                                                                    FDVHZDVRUDOO\DUJXHG+LVIDPLO\KDVDSSRLQWHGDSHUVRQDO
                                                                    UHSUHVHQWDWLYHWRSURFHHGZLWKWKHDSSHDO
                                                                    % 3URFHGXUDOEDFNJURXQG
                                                                       :DOOLQRULJLQDOO\ILOHGWKLVODZVXLWDVDSURVHFLYLOULJKWV
                                                                    DFWLRQXQGHU86&RQ)HEUXDU\7KH
                                                                    FDVHKDVDORQJDQGXQXVXDOSURFHGXUDOKLVWRU\LQFOXGLQJD
                                                                    SHULRG RI DERXW HLJKW \HDUV ZKHQ LW ZDV LQDFWLYH  7KLV
                                                                    GRUPDQF\HQGHGZKHQWKHGLVWULFWFRXUWHQWHUHGDQRUGHULQ
                                                                    6HSWHPEHURIUHRSHQLQJWKHFDVH%HWZHHQWKHIDOORI
                                                                     DQG WKH HDUO\ SDUW RI  :DOOLQ ILOHG D VHFRQG
                                                                    DPHQGHG FRPSODLQW WKH GLVWULFW FRXUW GLVPLVVHG VHYHUDO
                                                                    GHIHQGDQWVDQG:DOOLQYROXQWDULO\GLVPLVVHGVHYHUDOPRUH
                                                                    ,QWKHVSULQJRIWKHUHPDLQLQJGHIHQGDQWVILOHGDPRWLRQ
                                                                    WRGLVPLVVDQGRUIRUVXPPDU\MXGJPHQW7KHGLVWULFWFRXUW
                                                                    RQ 6HSWHPEHU   GHQLHG WKH PRWLRQ WR GLVPLVV DQG
                                                                    UXOHGWKDWWKHPRWLRQIRUVXPPDU\MXGJPHQWZDVSUHPDWXUH
                                                                    2Q2FWREHUWKHGLVWULFWFRXUWUHMHFWHGWKHPDJLVWUDWH
                                                                    MXGJHjV'HFHPEHUUHFRPPHQGDWLRQWKDWsDFREVRQ
     :DOOLQY1RUPDQHWDO                       1R       1R                      :DOOLQY1RUPDQHWDO        

DQG'U1RUPDQEHGLVPLVVHGIURPWKHODZVXLW:DOOLQWKHQ                  :DOOLQ IDLOHG WR VXEPLW D 5XOH I DIILGDYLW LQ
ILOHGKLVWKLUGDPHQGHGFRPSODLQWRQ1RYHPEHU                       UHVSRQVHWRWKHPRWLRQIRUVXPPDU\MXGJPHQW
   ,QUHVSRQVHWKHGHIHQGDQWVILOHGDQHZPRWLRQWRGLVPLVV              3XUVXDQW WR 5XOH I D SDUW\ RSSRVLQJ D PRWLRQ IRU
DQGRUIRUVXPPDU\MXGJPHQW5DWKHUWKDQDGGUHVVLQJWKH               VXPPDU\MXGJPHQWLVDOORZHGWRVWDWHWKDWKHRUVKHLVXQDEOH
PHULWVRIWKHPRWLRQWKHGLVWULFWFRXUWJUDQWHG:DOOLQOHDYHWR       WRSUHVHQWIDFWVHVVHQWLDOWRMXVWLI\WKHSDUW\jVRSSRVLWLRQ,Q
ILOHVWLOODQRWKHUDPHQGHGFRPSODLQWLQKLVDSSDUHQWHIIRUWWR         WKDWVLWXDWLRQWKHGLVWULFWFRXUWPD\SHUPLWIXUWKHUGLVFRYHU\
PHHWWKHKHLJKWHQHGSOHDGLQJVWDQGDUGIRUTXDOLILHGLPPXQLW\           VR WKDW WKH QRQPRYLQJ SDUW\ FDQ DGHTXDWHO\ RSSRVH WKH
LQHIIHFWDWWKHWLPH6HH9HQH\Y+RJDQ)G           PRWLRQ IRU VXPPDU\ MXGJPHQW  %XW LW LV XS WR WKH SDUW\
WK&LU7KHGHIHQGDQWVWKHQPRYHGWRVWD\GLVFRYHU\          RSSRVLQJWKHPRWLRQWRVWDWHZK\PRUHGLVFRYHU\LVQHHGHG
XQWLOWKHLVVXHRITXDOLILHGLPPXQLW\ZDVGHWHUPLQHGRUXQWLO         6HH$EHUFURPELH	)LWFK6WRUHV,QFY$P(DJOH2XWILWWHUV
0D\ZKLFKHYHUFDPHILUVW,QLWLDOO\:DOOLQREMHFWHG         ,QF)GWK&LUm>7@KHQRQPRYDQW
WRWKHVWD\EXWODWHUVWLSXODWHGWRLW7KHGLVWULFWFRXUWHQWHUHG   PXVWILOHDQDIILGDYLWSXUVXDQWWR)HG5&LY3IWKDW
WKHVWD\RQ)HEUXDU\DQGFRQGXFWHGDKHDULQJRQWKH            GHWDLOVWKHGLVFRYHU\QHHGHGRUILOHDPRWLRQIRUDGGLWLRQDO
PRWLRQVRQ$SULO2Q$SULOWKHGLVWULFW            GLVFRYHU\l*RRGY2KLR(GLVRQ&R)G
FRXUW HQWHUHG LWV RSLQLRQ DQG RUGHU GHQ\LQJ WKH PRWLRQ WR     WK &LU  KROGLQJ WKDW D SDUW\ LQYRNLQJ 5XOH I
GLVPLVVDQGUXOLQJWKDWWKHPRWLRQIRUVXPPDU\MXGJPHQWZDV            SURWHFWLRQV PXVW mDIILUPDWLYHO\ GHPRQVWUDWH    KRZ
SUHPDWXUH7KHSULVRQRIILFLDOVILOHGDPRWLRQWRUHFRQVLGHU         SRVWSRQHPHQWRIDUXOLQJRQWKHPRWLRQZLOOHQDEOHKLPE\
ZKLFKZDVGHQLHGRQ0D\                                       GLVFRYHU\RURWKHUPHDQVWRUHEXWWKHPRYDQWjVVKRZLQJRI
                                                                       WKHDEVHQFHRIDJHQXLQHLVVXHRIIDFWlLQWHUQDOTXRWDWLRQ
                       ,,$1$/<6,6                                PDUNVRPLWWHG6NRXVHQ)GDWSRLQWLQJRXWWKDW
                                                                       m>WKHSODLQWLIIGLGQRW@ILOHDQDIILGDYLWDVUHTXLUHGE\)HGHUDO
$ 6WDQGDUGRIUHYLHZ                                                  5XOH RI &LYLO 3URFHGXUH I H[SODLQLQJ KHU IDLOXUH RU
                                                                       LQDELOLW\WRILOHKHUDIILGDYLWVLQRSSRVLWLRQl
  'LVPLVVDOVXQGHU5XOHVEIRUIDLOXUHWRVWDWHDFODLP
XSRQ ZKLFK UHOLHI FDQ EH JUDQWHG DQG  IRU VXPPDU\            :DOOLQGLGQRWILOHVXFKDQDIILGDYLW,QLWVDEVHQFHWKHUH
MXGJPHQW RI WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH DUH          LVQRMXVWLILFDWLRQIRUWKHGLVWULFWFRXUWjVEODQNHWVWDWHPHQWWKDW
UHYLHZHGGHQRYR/DYDGRY.HRKDQH)G                DPRWLRQIRUVXPPDU\MXGJPHQWZLOOEHSUHPDWXUHXQWLOWKH
WK&LUm>:@HGUDZDOOUHDVRQDEOHLQIHUHQFHVIURP           FORVHRIGLVFRYHU\6NRXVHQ)GDW:HDOVR
WKH UHOHYDQW UHFRUG LQ IDYRU RI WKH QRQPRYDQW DQG IRU      QRWHWKDWQHLWKHU:DOOLQQRUWKHGHIHQGDQWVIXOO\DGGUHVVHGWKH
SXUSRVHVRIDPRWLRQIRUMXGJPHQWRQWKHSOHDGLQJVDOOZHOO          HYLGHQFHLQWKHUHFRUGVXSSRUWLQJDQGRSSRVLQJWKHPRWLRQIRU
SOHDGHG PDWHULDO DOOHJDWLRQV RI WKH SOHDGLQJV RI WKH QRQ      VXPPDU\ MXGJPHQW LQVWHDG IRFXVLQJ RQ WKH PHULWV RI WKH
PRYDQW PXVW EH WDNHQ DV WUXHl ,G LQWHUQDO FLWDWLRQV DQG    PRWLRQWRGLVPLVVDQGRQWKHGLVWULFWFRXUWjVGLVPLVVDORIWKH
TXRWDWLRQ PDUNV RPLWWHG m%HFDXVH WKH LVVXH RI TXDOLILHG        PRWLRQIRUVXPPDU\MXGJPHQWDVSUHPDWXUH:HWKHUHIRUH
LPPXQLW\LVDOHJDOTXHVWLRQQRGHIHUHQFHLVGXHWKHGLVWULFW         UHPDQGWKHFDVHIRUWKHGLVWULFWFRXUWWRFRQVLGHUWKHPRWLRQ
FRXUWjV FRQFOXVLRQl 2j%ULHQ Y &LW\ RI *UDQG 5DSLGV       IRUVXPPDU\MXGJPHQWRQLWVPHULWV
)GWK&LU
     :DOOLQY1RUPDQHWDO                        1R       1R                       :DOOLQY1RUPDQHWDO        

6LPLODUO\ LQ $QGHUVRQ Y &UHLJKWRQ  86            % 7KHGLVWULFWFRXUWGLGQRWHUULQGHQ\LQJWKHSULVRQ
WKH&RXUWUHLWHUDWHGWKDWm>R@QHRIWKHSXUSRVHVRIWKH            RIILFLDOVjPRWLRQWRGLVPLVV
+DUORZ TXDOLILHG LPPXQLW\ VWDQGDUG LV WR SURWHFW SXEOLF
RIILFLDOV IURP WKH EURDGUDQJLQJ GLVFRYHU\ WKDW FDQ EH             ,QLWV$SULORSLQLRQDQGRUGHUWKHGLVWULFWFRXUW
SHFXOLDUO\ GLVUXSWLYH RI HIIHFWLYH JRYHUQPHQWl  LQWHUQDO        DGGUHVVHGWKHPHULWVRIWKHGHIHQGDQWVjPRWLRQWRGLVPLVVRQ
TXRWDWLRQPDUNVRPLWWHG                                               WKHEDVLVRITXDOLILHGLPPXQLW\4XDOLILHGLPPXQLW\VHUYHV
                                                                        WR VKLHOG JRYHUQPHQW HPSOR\HHV IURP OLDELOLW\ ZKHQ
  7KH GHIHQGDQWV DOVR FRQWHQG WKDW GLVWULFW FRXUWV DUH QRW      SHUIRUPLQJ GLVFUHWLRQDU\ IXQFWLRQV LQ WKH FRXUVH RI WKHLU
SHUPLWWHGWRDYRLGGHFLGLQJWKHLVVXHRITXDOLILHGLPPXQLW\             HPSOR\PHQW  +DUORZ Y )LW]JHUDOG  86  
RQFHWKHGHIHQVHKDVEHHQSURSHUO\UDLVHG(QJOLVKY'\NH            ,WVSXUSRVHLVDOVRWRSURWHFWVXFKHPSOR\HHVIURP
)GWK&LUKROGLQJWKDWm>D@GLVWULFW          XQMXVWLILHG ODZVXLWV  ,G DW   )RU WKH PRVW SDUW
FRXUWPD\QRWDYRLGGHFLGLQJDGHIHQVHRITXDOLILHGLPPXQLW\            JRYHUQPHQWHPSOR\HHVDUHSURWHFWHGIURPFLYLOVXLWVH[FHSW
E\PLVFKDUDFWHUL]LQJWKHTXHVWLRQEHIRUHLWl7KLVFRXUWKDV          WR WKH H[WHQW WKDW WKHLU DFWLRQV YLRODWH FOHDUO\ HVWDEOLVKHG
UHFHQWO\KHOGWKDWDGLVWULFWFRXUWjVIDLOXUHWRUXOHRQDPRWLRQ       FRQVWLWXWLRQDOULJKWVRIZKLFKDUHDVRQDEOHSHUVRQZRXOGKDYH
IRU VXPPDU\ MXGJPHQW XQWLO GLVFRYHU\ ZDV FRPSOHWH ZDV            NQRZQ,GDW
OHJDOHUURU6NRXVHQY%ULJKWRQ+LJK6FKRRO)G
 WK &LU  JUDQWLQJ WKH GHIHQGDQWVj PRWLRQ IRU          ,QHYDOXDWLQJDPRWLRQWRGLVPLVVWKHFRXUWmPXVWDFFHSWDOO
VXPPDU\MXGJPHQWRQWKHEDVLVRITXDOLILHGLPPXQLW\DIWHU               ZHOOSOHDGHGIDFWXDODOOHJDWLRQVRIWKHFRPSODLQWDVWUXHDQG
GHWHUPLQLQJ WKDW HQRXJK GLVFRYHU\ KDG EHHQ FRPSOHWHG LQ          FRQVWUXH WKH FRPSODLQW LQ WKH OLJKW PRVW IDYRUDEOH WR WKH
RUGHUWRUXOHRQWKHPRWLRQ                                         SODLQWLIIl,QJHY5RFN)LQ&RUS)GWK
                                                                        &LU7KHGLVWULFWFRXUWLQWKHSUHVHQWFDVHDSSOLHGD
   (YHQWKRXJKWKHGHIHQGDQWVDUHIUHHWRUHQHZWKHLUPRWLRQ            KHLJKWHQHGSOHDGLQJVWDQGDUGWKDWLVQRORQJHULQHIIHFWEXW
ODWHUWKH\ZRXOGLQWKHPHDQWLPHEHIRUFHGWRJRWKURXJKD             WKDWIDFWLVLUUHOHYDQWWRWKLVDSSHDOEHFDXVHWKHGLVWULFWFRXUW
ODUJHSDUWRIWKHOLWLJDWLRQSURFHVVWKDWWKHTXDOLILHGLPPXQLW\        KHOGWKDW:DOOLQKDGPHWWKHKHLJKWHQHGSOHDGLQJVWDQGDUG
GRFWULQH VHHNV WR DYRLG  %\ IDLOLQJ WR HODERUDWH RQ ZK\      6HH9HQH\)GDW*RDGY0LWFKHOO)G
IXUWKHU GLVFRYHU\ ZDV QHFHVVDU\ WR SURSHUO\ GHFLGH WKH           WK&LUKROGLQJWKDWWKH6XSUHPH&RXUWjVGHFLVLRQLQ
PRWLRQWKHGLVWULFWFRXUWHUURQHRXVO\GHQLHGWKHGHIHQGDQWV            &UDZIRUG(OY%ULWWRQ86LQYDOLGDWHGWKH
WKH EHQHILW RI WKHLU GHIHQVH IURP VXLW LI WKDW GHIHQVH LV   KHLJKWHQHGSOHDGLQJUHTXLUHPHQWRI9HQH\
LQGHHGPHULWRULRXV:HWKHUHIRUHFRQFOXGHWKDWWKHGLVWULFW
FRXUWjVUHIXVDOWRDGGUHVVWKHPHULWVRIWKHGHIHQGDQWVjPRWLRQ            7KH GLVWULFW FRXUW QH[W DQDO\]HG ZKHWKHU :DOOLQ KDG
EDVHGRQTXDOLILHGLPPXQLW\ZDVDFRQFOXVLYHGHWHUPLQDWLRQ              VXIILFLHQWO\SOHGWKDWDFRQVWLWXWLRQDOULJKWKDGEHHQYLRODWHG
IRUWKHSXUSRVHRIDOORZLQJDQLQWHUORFXWRU\DSSHDO:LOOLDPV          )RUWKHGHIHQGDQWVWREHKHOGOLDEOHIRUYLRODWLQJWKH(LJKWK
Y0HKUD)GWK&LUKROGLQJLQ            $PHQGPHQW ZLWK UHJDUG WR :DOOLQjV PHGLFDO FDUH :DOOLQ
DQLQWHUORFXWRU\DSSHDOFKDOOHQJLQJDGHQLDORIDPRWLRQIRU            mPXVW VKRZ WKDW KH >ZDV@ LQFDUFHUDWHG XQGHU FRQGLWLRQV
VXPPDU\ MXGJPHQW WKDW mUHJDUGOHVV RI WKH GLVWULFW FRXUWjV       SRVLQJDVXEVWDQWLDOULVNRIVHULRXVKDUPlDQGWKDWWKHSULVRQ
UHDVRQV IRU GHQ\LQJ TXDOLILHG LPPXQLW\ ZH PD\ H[HUFLVH          RIILFLDOVZHUHGHOLEHUDWHO\LQGLIIHUHQWWRKLVKHDOWKRUVDIHW\
MXULVGLFWLRQ RYHU WKH    DSSHDO WR WKH H[WHQW LW UDLVHV   )DUPHUY%UHQQDQ86'HOLEHUDWH
TXHVWLRQV RI ODZl LQWHUQDO FLWDWLRQ DQG TXRWDWLRQ PDUNV        LQGLIIHUHQFH ZLOO EH IRXQG LI WKH RIILFLDOV FRQVFLRXVO\
RPLWWHGHPSKDVLVLQRULJLQDO                                         GLVUHJDUGHGDVXEVWDQWLDOULVNRIVHULRXVKDUPWR:DOOLQ,G
                                                                        DW   7KH GLVWULFW FRXUW IRXQG WKDW :DOOLQ KDG
     :DOOLQY1RUPDQHWDO                      1R      1R                      :DOOLQY1RUPDQHWDO       

VXIILFLHQWO\SOHGWKDWWKHSULVRQRIILFLDOVGHOD\HGKLVDFFHVVWR         7KHGHQLDORIWKHPRWLRQDVSUHPDWXUHRSHUDWHVDVD
PHGLFDOWUHDWPHQWmFDXVLQJ>:DOOLQ@WRVXIIHUXQQHFHVVDULO\                ILQDOMXGJPHQWIRUWKHSXUSRVHVRIWKLVLQWHUORFXWRU\
DQG UHVXOWLQJ LQ UHVLGXDO LQMXU\l  +LV mDOOHJDWLRQV DUH            DSSHDO
VXIILFLHQWO\VHULRXVWRHVWDEOLVKDQWK$PHQGPHQWYLRODWLRQl
                                                                        $VVWDWHGDERYHRQHRIWKHSXUSRVHVRITXDOLILHGLPPXQLW\
   7KHGLVWULFWFRXUWjVRSLQLRQWKHQUHYLHZHGWKHDFWLRQVRI         LVWRSURWHFWJRYHUQPHQWRIILFLDOVIURPXQMXVWLILHGODZVXLWV
HDFKSULVRQRIILFLDODVDOOHJHGLQ:DOOLQjVFRPSODLQW,QD         $Q LQWHUORFXWRU\ GHFLVLRQ DSSHDODEOH DV D ILQDO RUGHU PXVW
YHU\ WKRURXJK PDQQHU WKH GLVWULFW FRXUW GHWHUPLQHG WKDW      VDWLVI\WZRFULWHULDm>,@WPXVWFRQFOXVLYHO\GHWHUPLQHWKH
:DOOLQKDGSURSHUO\SOHGIDFWVVXIILFLHQWWRHVWDEOLVKWKDWHDFK     GLVSXWHGTXHVWLRQlDQGWKDWTXHVWLRQPXVWLQYROYHDFODLP
RI WKH RIILFLDOV DFWHG ZLWK GHOLEHUDWH LQGLIIHUHQFH WR KLV   mRIULJKWVHSDUDEOHIURPDQGFROODWHUDOWRULJKWVDVVHUWHGLQ
VHULRXV PHGLFDO QHHGV  $ UHDGLQJ RI :DOOLQjV FRPSODLQW     WKHDFWLRQl0LWFKHOOY)RUV\WK86
SDUWLFXODUO\XVLQJWKHQRUPDOSOHDGLQJVWDQGDUGLQGLFDWHVWKDW      LQWHUQDOFLWDWLRQVRPLWWHG7KHUHLVQRGRXEWWKDWDGHFLVLRQ
WKHGLVWULFWFRXUWSURSHUO\DQDO\]HGWKHDOOHJHGIDFWVDFFRUGLQJ     RQ TXDOLILHG LPPXQLW\ LQYROYHV D FODLP RI ULJKW WKDW LV
WR WKH FRUUHFW OHJDO SULQFLSOHV  :H WKHUHIRUH DIILUP WKH   VHSDUDWHIURPDQGFROODWHUDOWRULJKWVDVVHUWHGLQWKHDFWLRQ
GHFLVLRQRIWKHGLVWULFWFRXUWUHJDUGLQJWKHGHIHQGDQWVjPRWLRQ      ,G7KHNH\LVVXHWKXVEHFRPHVZKHWKHUWKHGLVWULFWFRXUWjV
WRGLVPLVV                                                          UHIXVDO WR DGGUHVV WKH PHULWV RI WKH GHIHQGDQWVj PRWLRQ
                                                                     FRQFOXVLYHO\GHWHUPLQHGWKHLVVXHLQWKLVFDVH
& 7KHGLVWULFWFRXUWHUUHGLQGHQ\LQJDVSUHPDWXUHWKH
   SULVRQRIILFLDOVjPRWLRQIRUVXPPDU\MXGJPHQW                        :DOOLQ PDNHV DQ DUJXPHQW WKDW VHHPV SODXVLEOH DW ILUVW
                                                                     JODQFH7KHLVVXHRIZKHWKHUWKHGHIHQGDQWVDUHHQWLWOHGWR
   5DWKHUWKDQDGGUHVVLQJWKHPHULWVRIWKHGHIHQGDQWVjPRWLRQ       TXDOLILHG LPPXQLW\ DW WKH VXPPDU\ MXGJPHQW VWDJH RI WKH
IRU VXPPDU\ MXGJPHQW WKH GLVWULFW FRXUW UHOLHG RQ LWV       SURFHHGLQJVKDVFOHDUO\QRWEHHQGHFLGHGEHFDXVHWKHGLVWULFW
6HSWHPEHU   GHFLVLRQ WKDW DQ HDUOLHU PRWLRQ IRU       FRXUWGLGQRWDGGUHVVWKHPHULWVRIWKHPRWLRQ:DOOLQDUJXHV
VXPPDU\MXGJPHQWZDVSUHPDWXUHDQGVKRXOGDZDLWWKHFORVH            WKDW EHFDXVH WKH PRWLRQ FDQ EH UHQHZHG DW WKH FORVH RI
RIGLVFRYHU\7KHGLVWULFWFRXUWJDYHWKHVDPHUDWLRQDOHLQLWV     GLVFRYHU\ WKH GHIHQGDQWV VWLOO UHWDLQ WKH SRVVLELOLW\ WKDW
$SULORSLQLRQDQGRUGHU%HFDXVHWKHGLVWULFWFRXUW        TXDOLILHG LPPXQLW\ ZLOO VKLHOG WKHP IURP KDYLQJ WR VWDQG
GLGQRWUXOHRQWKHPHULWVRITXDOLILHGLPPXQLW\LQLWVRSLQLRQ     WULDO7KLVLQWHUSUHWDWLRQKRZHYHUUHTXLUHVDQDUURZUHDGLQJ
:DOOLQDUJXHVWKDWWKLVFRXUWODFNVMXULVGLFWLRQWRUHYLHZWKH       RIZKDWLWPHDQVWREHSURWHFWHGIURPVXLW
PRWLRQQRZ7KHGHIHQGDQWVRQWKHRWKHUKDQGDUJXHWKDW
WKH GLVWULFW FRXUWjV GHQLDO RI WKHLU PRWLRQ DV SUHPDWXUH       7KHGHIHQGDQWVRQWKHRWKHUKDQGDUJXHWKDWDGHFLVLRQ
RSHUDWHVDVDILQDOGHFLVLRQRQTXDOLILHGLPPXQLW\EHFDXVHLW       XQGHU5XOHVKRXOGKDYHEHHQUHQGHUHGRQWKHEDVLVRIWKH
GHSULYHV WKHP RI D NH\ HOHPHQW RI WKH GRFWULQHjV             UHFRUG FXUUHQWO\ EHIRUH WKH GLVWULFW FRXUW  $V VWDWHG LQ
SURWHFWLRQnLPPXQLW\ IURP VXLW QRW MXVW IURP OLDELOLW\        &UDZIRUG(OY%ULWWRQ86
)XUWKHUWKHGHIHQGDQWVFRQWHQGWKDW:DOOLQVKRXOGKDYHILOHG
D 5XOH I DIILGDYLW H[SODLQLQJ KLV QHHG IRU DGGLWLRQDO     :KHQ D SODLQWLII ILOHV D FRPSODLQW DJDLQVW D SXEOLF
GLVFRYHU\ LQ RUGHU WR DGHTXDWHO\ RSSRVH WKHLU PRWLRQ IRU      RIILFLDODOOHJLQJDFODLPWKDWUHTXLUHVSURRIRIZURQJIXO
VXPPDU\MXGJPHQW                                                      PRWLYHWKHWULDOFRXUWPXVWH[HUFLVHLWVGLVFUHWLRQLQD
                                                                       ZD\WKDWSURWHFWVWKHVXEVWDQFHRIWKHTXDOLILHGLPPXQLW\
                                                                       GHIHQVH,WPXVWH[HUFLVHLWVGLVFUHWLRQVRWKDWRIILFLDOV
                                                                       DUH QRW VXEMHFWHG WR XQQHFHVVDU\ DQG EXUGHQVRPH
                                                                       GLVFRYHU\RUWULDOSURFHHGLQJV