Smith v. Hofbauer ( 2002 )

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 DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB /$55 V@WRGHYHORSWKHIDFWXDOEDVLV DSSHDOWKDWFRXQVHOZDVLQHIIHFWLYHEHFDXVHKHIDLOHGWR RI D FODLPl LQ WKH VWDWH FRXUWV ZKHQ WKHUH LV D mODFN RI FKDOOHQJH WKH FRPSRVLWLRQ RI WKH MXU\ EDVHG RQ WKH GLOLJHQFHRUVRPHJUHDWHUIDXOWDWWULEXWDEOHWRWKHSULVRQHURU XQGHUUHSUHVHQWDWLRQ>VLF@RIEODFNV7KLV&RXUWFDQWDNH WKHSULVRQHUjVFRXQVHOl:LOOLDPVY7D\ORU86 MXGLFLDOQRWLFHWKDWWKHXQGHUUHSUHVHQWDWLRQRIEODFNVRQ  .HQW&RXQW\&LUFXLW&RXUWMXULHVLVDVXEMHFWRIRQJRLQJ FRQFHUQLQ.HQW&RXQW\&RXQVHOjVIDLOXUHWRUDLVHWKLV ,Q :LOOLDPV WKH 6XSUHPH &RXUW GHILQHG D SULVRQHUjV FODLPPD\KDYHEHHQWKHUHVXOWRIDFRQIOLFWRILQWHUHVW GLOLJHQFHDVmDUHDVRQDEOHDWWHPSWLQOLJKWRIWKHLQIRUPDWLRQ FUHDWHGE\DIHORQ\GUXJFKDUJHSHQGLQJDJDLQVWKLPLQ DYDLODEOHDWWKHWLPHWRLQYHVWLJDWHDQGSXUVXHFODLPVLQVWDWH WKH .HQW &RXQW\ &LUFXLW &RXUW  .HQW &RXQW\ &LUFXLW FRXUWLWGRHVQRWGHSHQGXSRQZKHWKHUWKRVHHIIRUWVFRXOG &RXUW 1R )+  $OWHUQDWLYHO\ 0U 6PLWK KDYHEHHQVXFFHVVIXOl,GDW7\SLFDOO\WKLVZLOOUHTXLUH ZLVKHVWRFODLPWKDWKHZDVGHQLHGKLVIHGHUDODQGVWDWH mWKDWWKHSULVRQHUDWDPLQLPXPVHHNDQHYLGHQWLDU\KHDULQJ FRQVWLWXWLRQDO ULJKW WR D WULDO E\ MXU\ EHFDXVH WKH MXU\ LQVWDWHFRXUWLQWKHPDQQHUSUHVFULEHGE\VWDWHODZl,GDW PHPEHUV GLG QRW UHSUHVHQW D IDLU FURVVVHFWLRQ RI WKH 7KXVZKHQDGHIHQGDQWGLOLJHQWO\VHHNVDQHYLGHQWLDU\ FRPPXQLW\6HH'XUHQY0LVVLVVLSSL86 KHDULQJLQWKHVWDWHFRXUWVLQWKHPDQQHUSUHVFULEHGEXWWKH 6&W/(GG VWDWH FRXUWV GHQ\ KLP WKDW RSSRUWXQLW\ KH FDQ DYRLG †HjVEDUULHUVWRREWDLQLQJDKHDULQJLQIHGHUDOFRXUW s$DW3HWLWLRQHUjV0RWLRQWR5HPDQG ,G 7KH 0LFKLJDQ &RXUW RI $SSHDOV DIILUPHG 3HWLWLRQHUjV FRQYLFWLRQ DQG VHQWHQFH LQ DQ XQSXEOLVKHG SHU FXULDP RSLQLRQ RSLQLQJ WKDW m>E@HFDXVH WKH MXGJH DQG SURVHFXWRU LQYROYHGLQFRXQVHOjV>%DOJRR\HQjV@FDVHZHUHQRWWKHVDPH  6HFWLRQ H SURYLGHV LQ IXOO DVGHIHQGDQWjVQRDFWXDOFRQIOLFWRILQWHUHVWKDVEHHQVKRZQl 3HRSOHY6PLWK1RVOLSRSDW0LFK&W$SS ,I WKH DSSOLFDQW KDV IDLOHG WR GHYHORS WKH IDFWXDO EDVLV RI D sXO\   XQSXEOLVKHG SHU FXULDP FLWLQJ 3HRSOH Y FODLP LQ 6WDWH FRXUW SURFHHGLQJV WKH FRXUW VKDOO QRW KROG DQ HYLGHQWLDU\ KHDULQJ RQ WKH FODLP XQOHVV WKH DSSOLFDQW VKRZV WKDW 3LFNHQV1:G0LFK$SSDUHQWO\LQOLJKW o RIWKHFRXUWjVGHFLVLRQ3HWLWLRQHUjVPRWLRQWRUHPDQGIRUDQ HYLGHQWLDU\KHDULQJZDVGHQLHG $ WKH FODLP UHOLHV RQ o L D QHZ UXOH RI FRQVWLWXWLRQDO ODZ PDGH UHWURDFWLYH WR 2QsXO\3HWLWLRQHUILOHGDQDSSOLFDWLRQIRUOHDYH FDVHV RQ FROODWHUDO UHYLHZ E\ WKH 6XSUHPH &RXUW WKDW ZDV WRDSSHDOWRWKH0LFKLJDQ6XSUHPH&RXUWDJDLQUDLVLQJWKH SUHYLRXVO\ XQDYDLODEOH RU LL D IDFWXDO SUHGLFDWH WKDW FRXOG QRW KDYH EHHQ LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOLVVXH/HDYHZDVJUDQWHGRQ SUHYLRXVO\ GLVFRYHUHG WKURXJK WKH H[HUFLVH RI GXH GLOLJHQFH WKDWLVVXHDORQJZLWKDQHYLGHQWLDU\FODLPEXWWKHVXSUHPH DQG FRXUWDIILUPHG3HWLWLRQHUjVFRQYLFWLRQ6HH3HRSOHY6PLWK 1:G0LFK7KHFRXUWRSLQHGLQUHOHYDQW % WKH IDFWV XQGHUO\LQJ WKH FODLP ZRXOG EH VXIILFLHQW WR SDUWWKDW3HWLWLRQHUmFLWHGQRHYLGHQFHWRVXJJHVWWKDWGHIHQVH HVWDEOLVK E\ FOHDU DQG FRQYLQFLQJ HYLGHQFH WKDW EXW IRU FRQVWLWXWLRQDO HUURU QR UHDVRQDEOH IDFWILQGHU ZRXOG KDYH IRXQG FRXQVHO DFWLYHO\ OHVVHQHG KLV GHIHQVH DV D UHVXOW RI KLV WKH DSSOLFDQW JXLOW\ RI WKH XQGHUO\LQJ RIIHQVH SHQGLQJIHORQ\FKDUJHQRUGRZHILQGHYLGHQFHRIDQDFWXDO FRQIOLFWRILQWHUHVWRQWKHUHFRUG7RWKHFRQWUDU\GHIHQVH  86& † H HPSKDVLV DGGHG  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  FRXQVHO YLJRURXVO\ SXUVXHG KLV REMHFWLRQV DQG SUHVHQWHG D KRVWDJHWRWKH2IILFHRIWKH3URVHFXWRU$VDUHVXOWKHFRXOG VWURQJFDVHl,GDW KDYHIHDUHGQRWLUUDWLRQDOO\WKHFRQVHTXHQFHVWRKLPVHOIDQG IHOWmFRPSHOOHGWRUHIUDLQlIURPFKDOOHQJLQJDQDOOHJHGO\ORQJ 3HWLWLRQHUILOHGWKHLQVWDQWDSSOLFDWLRQIRUDZULWRIKDEHDV WROHUDWHGEXWLQDSSURSULDWHFRXUWKRXVHSUDFWLFHZLWKUHVSHFW FRUSXV LQ WKH GLVWULFW FRXUW UDLVLQJ WKH VLQJOH LVVXH RI WRWKHVHOHFWLRQRImMXURUVl6HH+ROORZD\Y$UNDQVDV LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO  6SHFLILFDOO\ 3HWLWLRQHU 86 DW   ,Q P\ RSLQLRQ 6PLWK VKRXOG KDYH DQ DUJXHGWKDWmEHFDXVHKLVWULDOFRXQVHOZDVEHLQJSURVHFXWHG HYLGHQWLDU\ KHDULQJ LQ RUGHU WR HQDEOH WKH GLVWULFW MXGJH WR RQDGUXJFKDUJHLQWKHVDPHFRXQW\LQZKLFK3HWLWLRQHUZDV GHWHUPLQH ZKHWKHU LQ WKH XQXVXDO FLUFXPVWDQFHV KHUH EHLQJ WULHG D FRQIOLFW RI LQWHUHVW H[LVWHG ZKLFK FUHDWHG D %DOJRR\HQ UHWDLQHG WKDW mLQGLVSHQVDEOH HOHPHQW RI    VWUXFWXUDO GHIHFW WKHUHE\ GHQ\LQJ 3HWLWLRQHU KLV 6L[WK HIIHFWLYHSHUIRUPDQFH>@WKHDELOLW\WRDFWLQGHSHQGHQWO\ $PHQGPHQWULJKWWRWKHHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOl RIWKH*RYHUQPHQWDQGWRRSSRVHLWlRQDVXEMHFWDERXWZKLFK s$DW3HWLWLRQIRU:ULWRI+DEHDV&RUSXV7KHGLVWULFW WKH2IILFHRIWKH3URVHFXWRUDQGWKH.HQW&RXQW\&RXUWRU FRXUW UHIHUUHG 3HWLWLRQHUjV FDVH WR D PDJLVWUDWH ZKR DQ\ FRXUW ZRXOG EH XQGHUVWDQGDEO\ KLJKO\ VHQVLWLYH  6HH UHFRPPHQGHG WKDW WKH DSSOLFDWLRQ EH GHQLHG  ,Q D )HUULY$FNHUPDQ86DW PHPRUDQGXP RSLQLRQ WKH GLVWULFW FRXUW DGRSWHG WKH PDJLVWUDWHjV UHFRPPHQGDWLRQ RSLQLQJ LQ UHOHYDQW SDUW DV 7KH KHLJKWHQHG VFUXWLQ\ ZKLFK , EHOLHYH %DOJRR\HQjV IROORZV VXVSHFW FRQIOLFW DGPLWWHG ODFN RI SUHSDUDWLRQ DQG DOOHJHG FKHPLFDO LPSHGLPHQWV UHTXLUH VKRXOG DOVR LQFOXGH D FORVH 7KH VWDWH FRXUWjV FRQFOXVLRQ WKDW GHIHQGDQW mFLWHG QR GLVWULFWFRXUWH[DPLQDWLRQRI%DOJRR\HQjVUROHZLWKUHVSHFW HYLGHQFH WR VXJJHVW WKDW GHIHQVH FRXQVHO DFWLYHO\ WRsXGJH/LHEHUjVRSHQFRXUWDGPRQLWLRQWKDW6PLWKFDUHIXOO\ OHVVHQHG KLV GHIHQVH DV D UHVXOW RI KLV SHQGLQJ IHORQ\ UHFRQVLGHU DQG FRXQVHO ZLWK %DOJRR\HQ DERXW WKH FKDUJHlLVDPSO\VXSSRUWHGE\WKHUHFRUG&RXQVHO SURVHFXWLRQjVHYHRIWULDORIIHURID\HDUVHQWHQFHLQVWHDG FRQGXFWHG D YLJRURXV GHIHQVH ORGJLQJ DSSURSULDWH RI ULVNLQJ D PXFK ORQJHU VHQWHQFH LQFOXGLQJ OLIH REMHFWLRQV WR HYLGHQFH HQJDJLQJ LQ H[WHQVLYH DQG LPSULVRQPHQW+LQGVLJKWPDNHVFOHDUZLWKRXWWKHDLGRIDQ\ FRPSHWHQWFURVVH[DPLQDWLRQDQGSUHVHQWLQJWHVWLPRQ\ SUHVXPSWLRQWKHGLUHFRQVHTXHQFHVRI6PLWKjVGHFLVLRQ RI GHIHQGDQW DQG WZR RWKHU ZLWQHVVHV  7KH 0LFKLJDQ WR\HDUVLQVWHDGRI$QHYLGHQWLDU\KHDULQJVKRXOGDOVR 6XSUHPH &RXUW UHDVRQDEO\ FRQFOXGHG WKDW SHWLWLRQHU H[SORUHZKHWKHU%DOJRR\HQSUHVVHGIRUWLPHDVKHZDVGLG IDLOHGWRVKRZDQ\DGYHUVHHIIHFWRQKLVUHSUHVHQWDWLRQE\ LQIDFWDGYLVH6PLWKmLQGHWDLOlRURWKHUZLVHDERXWWKHSOHD FRXQVHOj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†H8QGHUWKDWVHFWLRQDGHIHQGDQWZKR s$ DW  0HPRUDQGXP 2SLQLRQ $GRSWLQJ 5HSRUW DQG mIDLOHGWRGHYHORSWKHIDFWXDOEDVLVRIDFODLPLQ6WDWHFRXUW 5HFRPPHQGDWLRQDOWHUDWLRQLQRULJLQDO7KHGLVWULFWFRXUW SURFHHGLQJVlFDQQRWREWDLQDQHYLGHQWLDU\KHDULQJXQOHVVKH WKHUHDIWHUHQWHUHGLWVFRUUHVSRQGLQJRUGHUGHQ\LQJ3HWLWLRQHUjV  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  ([SHULHQFHWHDFKHVWKDWLQFDVHVIHDWXULQJDOOHJDWLRQVRIQRQ DSSOLFDWLRQ IRU WKH ZULW DQG LW LV IURP WKLV RUGHU WKDW FRQVHQVXDO RUDO VH[ EHWZHHQ SHUVRQV RI WKH VDPH VH[ EXW 3HWLWLRQHUQRZDSSHDOV GLIIHUHQW UDFHV SUHFRQFHSWLRQV FDQ VWURQJO\ LQIOXHQFH WKH FUHGLELOLW\MXGJPHQWVRISURIHVVHGO\LPSDUWLDOWULHUVRIIDFW ',6&866,21 ,Q VXFK FDVHV MXU\ VHOHFWLRQ LV D FULWLFDO LI QRW WKH PRVW FULWLFDO UHVSRQVLELOLW\ RI DQ HIIHFWLYH FULPLQDO GHIHQVH :KHQ UHYLHZLQJ D GLVWULFW FRXUWjV GHFLVLRQ UHJDUGLQJ D FRXQVHO7KHUHFRUGRI%DOJRR\HQjVYRLUGLUHH[DPLQDWLRQRI SHWLWLRQIRUDZULWRIKDEHDVFRUSXVEURXJKWXQGHU86& WKH SDUWLFXODU YHQLUH WKDW WKH .HQW &RXQW\ &RXUW V\VWHP †ZHUHYLHZWKHGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGH GHOLYHUHGWRWKHFRXUWURRPDERXWLWVDWWLWXGHVDVWRUDFHDQG QRYRDQGLWVIDFWXDOILQGLQJVIRUFOHDUHUURU6HH+DUULVY VH[PD\KDYHEHHQDSSURSULDWHDVIDUDVLWZHQW%XW6PLWKjV 6WRYDOO)GWK&LU DSSOLFDWLRQIRUDUHPDQGH[SUHVVHGFRQFHUQWKDW%DOJRR\HQ PDGH QR LVVXH RI DQ DOOHJHGO\ GLVFULPLQDWRU\ SURFHVV E\ $ $('3$6WDQGDUGV ZKLFK WKH .HQW &RXQW\ FRXUWKRXVH V\VWHP GUHZ DOO RI LWV mMXULHVls$DWGHVFULEHGVXSUDSLQFOXGLQJEXW $('3$ SURYLGHV IHGHUDO KDEHDV UHOLHI IRU D VWDWH FRXUW QRW OLPLWHG WR WKH YHQLUH IURP ZKLFK %DOJRR\HQ DQG WKH GHIHQGDQWLIWKHVWDWHFRXUWjVGHFLVLRQmUHVXOWHGLQDGHFLVLRQ SURVHFXWRU SLFNHG WKH SHWLW MXU\ ZKLFK UHWXUQHG WKH YHUGLFW WKDWZDVFRQWUDU\WRRULQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQ WKDW6PLWKZDVJXLOW\ RI FOHDUO\ HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH 6XSUHPH&RXUW>@l86&†GRUZDVEDVHGRQ %DOJRR\HQ PD\ KDYH PDGH QR LVVXH RI WKH .HQW &RXQW\ mDQ XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH SUDFWLFH IRU VHOHFWLQJ MXURUV EHFDXVH LW ZDV DQG LV TXLWH HYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJl86& FRUUHFWDQGKHNQHZLW2UXQSUHSDUHGDVKHZDVRQWKHHYH † G  $ VWDWH FRXUW DGMXGLFDWLRQ LV mFRQWUDU\ WRl RIWULDODQGSRVVLEO\XQGHUWKHLQIOXHQFHKHPD\KDYHQHYHU 6XSUHPH &RXUW SUHFHGHQW XQGHU †G mLI WKH VWDWH WKRXJKW RI UDLVLQJ WKH LVVXH RU WKLQNLQJ RI LW ZDV WRR FRXUWDUULYHVDWDFRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\>WKH SUHRFFXSLHGZLWKODVWPLQXWHWULDOSUHSDUDWLRQWRKDYHWLPHWR 6XSUHPH@&RXUWRQDTXHVWLRQRIODZlRUmLIWKHVWDWHFRXUW GHYHORSDQGUDLVHLW,QHLWKHURIWKRVHHYHQWV6PLWKjVSUHVHQW FRQIURQWVIDFWVWKDWDUHPDWHULDOO\LQGLVWLQJXLVKDEOHIURPD FRQFHUQVDERXW%DOJRR\HQjVFRQIOLFWRILQWHUHVWPD\EHEHVLGH UHOHYDQW6XSUHPH&RXUWSUHFHGHQWlDQGDUULYHVDWDGLIIHUHQW WKHPDUN%XWKHLJKWHQHGVFUXWLQ\RIWKHUHFRUGVKRXOGKDYH UHVXOW:LOOLDPVY7D\ORU6&W$ DOHUWHGWKHPDJLVWUDWHRUWKHGLVWULFWMXGJHWRWKHIDFWWKDWHYHQ VWDWHFRXUWDGMXGLFDWLRQLQYROYHVmDQXQUHDVRQDEOHDSSOLFDWLRQ LI%DOJRR\HQZDVFRQVLGHULQJKRZWRSURWHFWKLVPXVFXODU RIl6XSUHPH&RXUWSUHFHGHQWXQGHU†GmLIWKHVWDWH JD\ $IULFDQ$PHULFDQ FOLHQW IURP MXU\ ELDV KH ZDV YHU\ FRXUW LGHQWLILHV WKH FRUUHFW JRYHUQLQJ OHJDO UXOH IURP >WKH SRVVLEO\HTXDOO\LIQRWPRUHFRQFHUQHGDERXWKLVRZQIDWH 6XSUHPH@ &RXUWjV FDVHV EXW XQUHDVRQDEO\ DSSOLHV LW WR WKH DQGWKHSRVVLELOLW\RI D IDYRUDEOHSOHDEDUJDLQIRUKLPVHOI IDFWVRIWKHSDUWLFXODUFDVHlRULIWKHFRXUWXQUHDVRQDEO\ VXFK DV WKH PRQWK VHQWHQFH WKDW KH QHJRWLDWHG DIWHU KLV UHIXVHV WR H[WHQG RU XQUHDVRQDEO\ H[WHQGV H[LVWLQJ OHJDO FOLHQW UHMHFWHG D IDYRUDEOH SOHD RIIHU DQG VWRRG FRQYLFWHG SULQFLSOHVIURPWKH&RXUWjVSUHFHGHQWVWRDQHZFRQWH[W,G :KHQKHZDVDGYLVLQJ6PLWKMXVWEHIRUHWULDOHYHQWKRXJKKH DW ZDVEHLQJSURVHFXWHGE\DQDVVLVWDQWGLIIHUHQWIURPWKHRQH ZKR RSSRVHG KLP LQ 6PLWKjV FDVH KH FRXOG QRW NQRZ m:KHWKHU>3HWLWLRQHU@ZDVGHSULYHGRIKLVULJKWWRHIIHFWLYH ZKHWKHURUZKHQWKRVHWZRH[FKDQJHGLQIRUPDWLRQDERXWWKH DVVLVWDQFHRIFRXQVHOLVDPL[HGTXHVWLRQRIODZDQGIDFWWKDW WZRFDVHVDWKDQGRUKDGDVXSHULRUIDPLOLDUZLWKERWK,QWKH ZHUHYLHZGHQRYRl+XQWY0LWFKHOO)G FLUFXPVWDQFHV%DOJRR\HQFRXOGKDYHIHOWWKDWKLVOLEHUW\ZDV FLWLQJ2OGHQY8QLWHG6WDWHV)GWK &LU   7KLV &RXUW DSSOLHV WKH mXQUHDVRQDEOH  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  DSSOLFDWLRQlSURQJRI†GWRPL[HGTXHVWLRQVRIODZ WR SRVVLEOH SUHWULDO SOHD QHJRWLDWLRQV DQG LQ WKH VHQWHQFLQJ DQGIDFW,GFLWLQJ+DUSVWHUY2KLR)GWK SURFHVVl,G%XUJHU&sVHHDOVR0LFNHQV6&WDW &LU7KH6XSUHPH&RXUWKDVFDXWLRQHGWKDWDIHGHUDO  .HQQHG\ s FRQFXUULQJ LQ D UHODWHG FRQWH[W KDEHDVFRXUWPD\QRWRYHUWXUQDVWDWHFRXUWjVGHFLVLRQVLPSO\ GLVSDUDJLQJDmZRRGHQUXOHlDQGHPSKDVL]LQJWKHLPSRUWDQFH EHFDXVHLWFRQFOXGHVWKDWDVWDWHFRXUWPLVDSSOLHG6XSUHPH RIDQHYLGHQWLDU\KHDULQJDQGGLVWULFWFRXUWILQGLQJVRQWKH &RXUW SUHFHGHQW UDWKHU WKH VWDWH FRXUWjV DSSOLFDWLRQ RI HIIHFWRIWKHFRQIOLFWRQWKHUHSUHVHQWDWLRQ 6XSUHPH&RXUWSUHFHGHQWPXVWDOVREHXQUHDVRQDEOH6HHLG FLWLQJ:LOOLDPV86DW 7KH IRUHJRLQJ FRQVLGHUHG , EHOLHYH WKDW HYHQ WKRXJK %DOJRR\HQjV FRQIOLFW LV QRW RQ mDOO IRXUVl ZLWK WKH MRLQW % 6XSUHPH&RXUW3UHFHGHQWDVWR,QHIIHFWLYH$VVLVWDQFH UHSUHVHQWDWLRQDWLVVXHLQ&X\OHULWLVHYHQPRUHmVXVSHFWl RI&RXQVHO&ODLPV%DVHG8SRQ&RXQVHOjV&RQIOLFWRI ,WKDGDVWURQJHUWHQGHQF\WRLQIOXHQFHLIQRWFRPSHOKLPWR ,QWHUHVW UHIUDLQIURPDFWLRQVSRWHQWLDOO\DGYDQWDJHRXVWRKLVFOLHQWWKDW DQHIIHFWLYHFRXQVHOZRXOGWDNH7KDWWHQGHQF\VKRXOGKDYH m,WKDVORQJEHHQUHFRJQL]HGWKDWWKHULJKWWRFRXQVHO>XQGHU DURXVHGWKH'LVWULFW&RXUWjVVHULRXVVXVSLFLRQVDQGSURPSWHG WKH6L[WK$PHQGPHQW@LVWKHULJKWWRWKHHIIHFWLYHDVVLVWDQFH LW WR H[DPLQH WKH HQWLUH VWDWH FRXUW UHFRUG ZLWK KHLJKWHQHG RIFRXQVHOl0F0DQQY5LFKDUGVRQ86Q VFUXWLQ\   ,Q WKLV UHJDUG WKH &RXUW RSLQHG LQ 6WULFNODQG Y :DVKLQJWRQ  86    WKDW LQ JHQHUDO LQ % (YLGHQWLDU\+HDULQJ RUGHU IRU D FULPLQDO GHIHQGDQW WR SUHYDLO RQ D FODLP IRU LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOXQGHUWKH6L[WK$PHQGPHQW $FORVHH[DPLQDWLRQRIWKHVWDWHFRXUWUHFRUGE\WKHGLVWULFW WKH GHIHQGDQW PXVW GHPRQVWUDWH mD UHDVRQDEOH SUREDELOLW\ FRXUW ZRXOG KDYH OHG WR WKH GLVFRYHU\ WKDW WKHUH ZHUH WZR WKDWEXWIRUFRXQVHOjVXQSURIHVVLRQDOHUURUVWKHUHVXOWRIWKH FULWLFDOSKDVHVRI%DOJRR\HQjVUHSUHVHQWDWLRQZKLFKVKRXOG SURFHHGLQJV ZRXOG KDYH EHHQ GLIIHUHQWl  $FFRUGLQJ WR KDYH EHHQ H[SORUHG ZLWK FDUH LQ DQ HYLGHQWLDU\ KHDULQJ 6WULFNODQG m>D@ UHDVRQDEOH SUREDELOLW\ LV D SUREDELOLW\ KLVIDLOXUHWRFKDOOHQJHWKHFRPSRVLWLRQRIWKH6PLWKMXU\ VXIILFLHQW WR XQGHUPLQH FRQILGHQFH LQ WKH RXWFRPHl RI WKH LQOLJKWRIKLVDOOHJDWLRQVRIDMXGLFLDOO\QRWLFHDEOHRQJRLQJ WULDO,GVHHDOVR%HOOY&RQH86BBB6&W FRQFHUQDERXWWKHXQGHUUHSUHVHQWDWLRQRI$IULFDQ$PHULFDQV    m:LWKRXW SURRI RI ERWK GHILFLHQW RQ.HQW&RXQW\&LUFXLW&RXUWYHQLUHVIURPRQHRIZKLFKWKH SHUIRUPDQFHDQGSUHMXGLFHWRWKHGHIHQVH>XQGHU6WULFNODQG@ 6PLWKMXU\ZDVGUDZQDQGKLVUROHLQ6PLWKjVIDWHIXOHYH    LW FRXOG QRW EH VDLG WKDW WKH VHQWHQFH RU FRQYLFWLRQ RIWULDOUHMHFWLRQRIWKHRIIHURIWKHSURVHFXWLRQRIDWHQ\HDU µUHVXOWHG IURP D EUHDNGRZQ LQ WKH DGYHUVDU\ SURFHVV WKDW VHQWHQFHLQH[FKDQJHIRUDSOHDRIJXLOW\LQOLJKWRIWKHWULDO UHQGHUHG WKH UHVXOW RI WKH SURFHHGLQJ XQUHOLDEOHj DQG WKH MXGJHjV SRLQWHG DGPRQLWLRQ WR 6PLWK ZLWK UHVSHFW WR WKH VHQWHQFH RU FRQYLFWLRQ VKRXOG VWDQGl LQWHUQDO TXRWDWLRQ SURVSHFWRIDOLIHVHQWHQFHWKDWKHVHHN%DOJRR\HQjVDGYLFH PDUNVDQGFLWDWLRQRPLWWHG DQG KLV DGPRQLWLRQ WR %DOJRR\HQ WR UHQGHU LW mLQ JUHDW GHWDLOl6HHVXSUDS +RZHYHU6WULFNODQGDOVRUHFRJQL]HGWKDWm>L@QFHUWDLQ6L[WK $PHQGPHQW FRQWH[WV SUHMXGLFH LV SUHVXPHGl  6HH 7KHMXU\WU\LQJ6PLWKZDVFDOOHGRQWRUHVROYHDVZHDULQJ 6WULFNODQG86DW&LWLQJ8QLWHG6WDWHVY&URQLF PDWFKEHWZHHQWKHGLUHFWWHVWLPRQ\RID\HDUROGDWWKH  86    Q  WKH 6WULFNODQG &RXUW WLPH RI WULDO ZKLWH PDOH FRUURERUDWHG E\ WKH KHDUVD\ UHFRJQL]HG WKDW m>D@FWXDO RU FRQVWUXFWLYH GHQLDO RI WKH WHVWLPRQ\ RI KLV PRWKHU DQG WKH GLUHFW FDWHJRULFDO EXW DVVLVWDQFHRIFRXQVHODOWRJHWKHULVOHJDOO\SUHVXPHGWRUHVXOW XQFRUURERUDWHGGHQLDOE\6PLWKDWKHQ\HDUROG$IULFDQ $PHULFDQ ZKR WRRN WKH VWDQG LQ KLV RZQ GHIHQVH  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  6WDWHVY&URQLF86QFLWLQJ7ROOHWW LQSUHMXGLFH6RDUHYDULRXVNLQGVRIVWDWHLQWHUIHUHQFHZLWK Y+HQGHUVRQ86)LQDOO\KLJKO\ FRXQVHOjV DVVLVWDQFHl  6WULFNODQG  86 DW   0RUH UHOHYDQWWRWKHFLUFXPVWDQFHVKHUH6XSUHPH&RXUWGHFLVLRQV VSHFLILFDOO\ LQ &URQLF WKH &RXUW QRWHG WKDW WKHUH DUH WHDFK WKDW mDQ LQGLVSHQVDEOH HOHPHQW RI WKH HIIHFWLYH mFLUFXPVWDQFHVWKDWDUHVROLNHO\WRSUHMXGLFHWKHDFFXVHGWKDW SHUIRUPDQFH RI >GHIHQVH FRXQVHOjV@ UHVSRQVLELOLWLHV LV WKH WKH FRVW RI OLWLJDWLQJ WKHLU HIIHFW LQ D SDUWLFXODU FDVH LV DELOLW\WRDFWLQGHSHQGHQWO\RIWKH*RYHUQPHQWDQGWRRSSRVH XQMXVWLILHG>@lDQGIRXQGVXFKFLUFXPVWDQFHVWRLQFOXGHWKH LWLQDGYHUVDU\OLWLJDWLRQl)HUULY$FNHUPDQ86 mFRPSOHWHGHQLDORIFRXQVHOlRUWKHGHQLDORIFRXQVHOmDWD  FULWLFDOVWDJHlRIWKHGHIHQGDQWjVWULDOWKHIDLOXUHWRmVXEMHFW WKHSURVHFXWLRQjVFDVHWRPHDQLQJIXODGYHUVDULDOWHVWLQJ>@l $ (IIHFWLYH $VVLVWDQFH RI &RXQVHO DQG &RQIOLFWV RI DQGWKRVHFLUFXPVWDQFHVLQZKLFKFRXQVHOLVFDOOHGXSRQWR ,QWHUHVW UHQGHUDVVLVWDQFHZKHUHFRPSHWHQWFRXQVHOYHU\OLNHO\FRXOG QRW VXFK DV LQ 3RZHOO Y $ODEDPD  86   $ 6XSUHPH &RXUW PDMRULW\ KDV HVWDEOLVKHG D FOHDU &URQLF86DW IUDPHZRUNIRUHYDOXDWLQJWKHHIIHFWLYHQHVVRIFRXQVHOZKHUH RQHODZ\HUUHSUHVHQWVPRUHWKDQRQHGHIHQGDQWLQDFULPLQDO 6WULFNODQG IXUWKHU UHFRJQL]HG WKDW m>R@QH W\SH RI DFWXDO FDVH6HH+ROORZD\Y$UNDQVDV86DW&X\OHU LQHIIHFWLYHQHVVFODLPZDUUDQWVDVLPLODUWKRXJKPRUHOLPLWHG Y 6XOOLYDQ  86 DW  VHH DOVR 6WULFNODQG Y SUHVXPSWLRQ RI SUHMXGLFHl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mµDQDFWXDOFRQIOLFWRILQWHUHVW LQWHUHVWDULVLQJRXWRIMRLQWUHSUHVHQWDWLRQWKHSUHFLVHFRQIOLFW DGYHUVHO\DIIHFWHGKLVODZ\HUjVSHUIRUPDQFHjl6WULFNODQG DWLVVXHLQ&X\OHUWULJJHU&X\OHUW\SHDQDO\VLVDQGUHOLHI 86DWTXRWLQJ&X\OHUY6XOOLYDQ86  2EYLRXVO\ &X\OHU LV FOHDUO\ HVWDEOLVKHG DQG UHOHYDQW 6XSUHPH&RXUWODZ%XWLWLVQRWWKHWRWDOLW\RILW7KHUHDOLW\ 7KH 6XOOLYDQ VWDQGDUG JUHZ RXW RI WKH &RXUWjV SULRU LV WKDW FRQIOLFWV FRPH LQ DOO VKDSHV DQG VL]HV RQO\ RQH RI UHFRJQLWLRQWKDWZKHQmDWULDOFRXUWLPSURSHUO\UHTXLUHVMRLQW ZKLFKLVMRLQWUHSUHVHQWDWLRQ,QP\YLHZDQGFULWLFDOWRP\ UHSUHVHQWDWLRQRYHUWLPHO\REMHFWLRQ>@lLQHIIHFWLYHDVVLVWDQFH DQDO\VLVRIWKHSUHVHQWFDVHWKH6XSUHPH&RXUWjVGHFLVLRQLQ RIFRXQVHOLVSUHVXPHG+ROORZD\Y$UNDQVDV86 +ROORZD\ FOHDUO\ HVWDEOLVKHG WKH XOWLPDWH IXQFWLRQDOO\   FLWLQJ *ODVVHU Y 8QLWHG 6WDWHV  86  JRYHUQLQJOHJDOUDWLRQDOHIRUIHGHUDOKDEHDVUHYLHZIRUDQ\ 7KH&RXUWLQ+ROORZD\KHOGWKDWZKHUHFRXQVHOLV FRQYLFWHGGHIHQGDQWUHSUHVHQWHGLQVWDWHFRXUWE\FRQIOLFWHG UHSUHVHQWLQJPXOWLSOHGHIHQGDQWVDWWULDODQGWLPHO\REMHFWVLQ FRXQVHO QRW PHUHO\ MRLQW UHSUHVHQWDWLRQ  +ROORZD\ Y RSHQFRXUWWRWKHMRLQWUHSUHVHQWDWLRQEXWLVQRQHWKHOHVVIRUFHG $UNDQVDV86DW$VWKH&RXUWH[SODLQHGWKHUH WR UHSUHVHQW WKH FRGHIHQGDQWV DQ DXWRPDWLF UHYHUVDO LV m>M@RLQW UHSUHVHQWDWLRQ RI FRQIOLFWLQJ LQWHUHVWV LV VXVSHFW UHTXLUHGXQOHVVWKHWULDOFRXUWKDVGHWHUPLQHGWKDWWKHUHLVQR EHFDXVH RI ZKDW LW WHQGV WR SUHYHQW WKH DWWRUQH\ IURP FRQIOLFW  ,G  7KH &RXUW UHDVRQHG WKDW D SUHVXPSWLRQ RI GRLQJ>7@KHHYLOLVLQZKDWWKHDGYRFDWHILQGVKLPVHOI SUHMXGLFH WR WKH GHIHQGDQWV LV SURSHU XQGHU VXFK FRPSHOOHGWRUHIUDLQIURPGRLQJQRWRQO\DWWULDOEXWDOVRDV FLUFXPVWDQFHVEHFDXVH  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  LQDFDVHRIMRLQWUHSUHVHQWDWLRQRIFRQIOLFWLQJLQWHUHVWV>@ ,G  7KH GLVWULFW FRXUW DOVR PDGH QR UHIHUHQFH HLWKHU WR WKH HYLO    LV LQ ZKDW WKH DGYRFDWH ILQGV KLPVHOI %DOJRR\HQjVUROHLQMXU\VHOHFWLRQRUWKHUHMHFWHG\HDUSOHD FRPSHOOHGWRUHIUDLQIURPGRLQJQRWRQO\DWWULDOEXWDOVR EDUJDLQDQGGHQLHG6PLWKjV†SHWLWLRQ DV WR SRVVLEOH SUHWULDO SOHD QHJRWLDWLRQV DQG LQ WKH VHQWHQFLQJSURFHVV,WPD\EHSRVVLEOHLQVRPHFDVHVWR ,,',6&866,21 LGHQWLI\IURPWKHUHFRUGWKHSUHMXGLFHUHVXOWLQJIURPDQ DWWRUQH\jVIDLOXUHWRXQGHUWDNHFHUWDLQWULDOWDVNVEXWHYHQ ,DJUHHZLWKWKHPDMRULW\WKDWWKH6XSUHPH&RXUWKDVFOHDUO\ ZLWKDUHFRUGRIWKHVHQWHQFLQJKHDULQJDYDLODEOHLWZRXOG HVWDEOLVKHGWKDWDWDPLQLPXPDIHGHUDOKDEHDVFRXUWPXVW EHGLIILFXOWWRMXGJHLQWHOOLJHQWO\WKHLPSDFWRIDFRQIOLFW JUDQWDZULWWRDVWDWHFRXUWSHWLWLRQHUZKRRYHUKLVSURWHVW RQWKHDWWRUQH\jVUHSUHVHQWDWLRQRIDFOLHQW$QGWRDVVHVV DQGZLWKRXWIXUWKHULQTXLU\ZDVUHSUHVHQWHGE\FRXQVHOZKR WKH LPSDFW RI D FRQIOLFW RI LQWHUHVWV RQ WKH DWWRUQH\jV DOVRUHSUHVHQWHGDQRWKHUGHIHQGDQWLQWKDWFDVH+ROORZD\Y RSWLRQVWDFWLFVDQGGHFLVLRQVLQSOHDQHJRWLDWLRQVZRXOG $UNDQVDV86IDLOVWRREMHFWWR EHYLUWXDOO\LPSRVVLEOH7KXVDQLQTXLU\LQWRDFODLPRI GXDOUHSUHVHQWDWLRQEXWGHPRQVWUDWHVWKDWLWFUHDWHGDQDFWXDO KDUPOHVV HUURU KHUH ZRXOG UHTXLUH XQOLNH PRVW FDVHV FRQIOLFWWKDWDGYHUVHO\DIIHFWHGFRXQVHOjVSHUIRUPDQFH&X\OHU XQJXLGHGVSHFXODWLRQ Y6XOOLYDQ86RUGHPRQVWUDWHV WKDWEXWIRUKLVFRXQVHOjVXQSURIHVVLRQDOHUURUVWKHUHVXOWRI ,GHPSKDVLVLQRULJLQDO WKH SURFHHGLQJV ZRXOG KDYH EHHQ GLIIHUHQW 6WULFNODQG Y :DVKLQJWRQ  86     , DOVR DJUHH WKDW /DWHULQ6XOOLYDQWKH6XSUHPH&RXUWGHFOLQHGWRH[WHQG 6PLWKKDVQRW\HWVDWLVILHGWKHVHIRUPXODHDVWKH\KDYHEHHQ +ROORZD\jVDXWRPDWLFUHYHUVDOUXOHWRFDVHVLQZKLFKWKHUH UHFHQWO\FRQVWUXHG6HH0LFNHQVY7D\ORUBBB86BBB ZDV QR REMHFWLRQ PDGH WR WKH MRLQW UHSUHVHQWDWLRQ DW WULDO 6&W 5DWKHU WKH &RXUW IRXQG WKDW m>L@Q RUGHU WR HVWDEOLVK D YLRODWLRQRIWKH6L[WK$PHQGPHQWDGHIHQGDQWZKRUDLVHGQR +RZHYHUDVVWDWHG,GLVDJUHHZLWKWKHUXOLQJWKDW6PLWKjV REMHFWLRQDWWULDO>WRMRLQWUHSUHVHQWDWLRQ@PXVWGHPRQVWUDWH UHTXHVWIRUDQHYLGHQWLDU\KHDULQJLVPRRW6XSUHPH&RXUW WKDW DQ DFWXDO FRQIOLFW RI LQWHUHVW DGYHUVHO\ DIIHFWHG KLV GHFLVLRQV FOHDUO\ HVWDEOLVKHG ORQJ DJR WKDW D SHUVRQ m    ODZ\HUjV SHUIRUPDQFHl   86 DW   7KH &RXUW DOVR FKDUJHGZLWKFULPHUHTXLUHVWKHJXLGLQJKDQGRIFRXQVHO QRWHGWKDWmQRWKLQJLQ>LWV@SUHFHGHQWVVXJJHVWVWKDWWKH6L[WK DWHYHU\VWHSLQWKHSURFHHGLQJVDJDLQVWKLPl6HH3RZHOOY $PHQGPHQW UHTXLUHV VWDWH FRXUWV WKHPVHOYHV WR LQLWLDWH $ODEDPD86HPSKDVLVDGGHGDQG LQTXLULHVLQWRWKHSURSULHW\RIPXOWLSOHUHSUHVHQWDWLRQLQHYHU\ WKDWWKHmULJKWWRFRXQVHOLVWKHULJKWWRWKHHIIHFWLYHDVVLVWDQFH FDVHl,GDW,QVWHDGm>D@EVHQWVSHFLDOFLUFXPVWDQFHV RIFRXQVHOlVHH0F0DQQY5LFKDUGVRQ86 WULDOFRXUWVPD\DVVXPHHLWKHUWKDWPXOWLSOHUHSUHVHQWDWLRQ Q   ,W LV DOVR FOHDU WKDW WKH ULJKW WR HIIHFWLYH HQWDLOVQRFRQIOLFWRUWKDWWKHODZ\HUDQGKLVFOLHQWVNQRZLQJO\ DVVLVWDQFH RI FRXQVHO DSSOLHV DW WKH SOHD VWDJH RI WKH DFFHSW VXFK ULVN RI FRQIOLFW DV PD\ H[LVWl  ,G IRRWQRWH SURFHHGLQJV+LOOY/RFNKDUW86m>(@YHQ RPLWWHG7KH&RXUWUHDVRQHGWKDWmWULDOFRXUWVQHFHVVDULO\ ZKHQWKHUHLVDERQDILGHGHIHQVHFRXQVHOPD\VWLOODGYLVHKLV UHO\LQODUJHPHDVXUHXSRQWKHJRRGIDLWKDQGJRRGMXGJPHQW FOLHQWWRSOHDGJXLOW\LIWKDWDGYLFHIDOOVZLWKLQWKHUDQJHRI RI GHIHQVH FRXQVHO>@l VXFK WKDW  m>X@QOHVV WKH WULDO FRXUW UHDVRQDEOHFRPSHWHQFHXQGHUWKHFLUFXPVWDQFHVl6HH8QLWHG NQRZVRUUHDVRQDEO\VKRXOGNQRZWKDWDSDUWLFXODUFRQIOLFW H[LVWVWKHFRXUWQHHGQRWLQLWLDWHDQLQTXLU\l,GIRRWQRWH RPLWWHG  7KHUHIRUH SXUVXDQW WR 6XOOLYDQ ZKHUH FRXQVHO  6HH DOVR 7KH 6XSUHPH &RXUW  7HUP /HDGLQJ &DVHV  +DUY HQJDJHVLQMRLQWUHSUHVHQWDWLRQDQGPDNHVQRREMHFWLRQWRWKH / 5HY    FULWLFDO DQDO\VLV RI 0LFNHQVDQG WKH SUHFHGHQWV WKHUH DGGUHVVHG  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  UHFRPPHQGHGWKDWKLVSHWLWLRQEHGHQLHG6PLWKREMHFWHGWR MRLQWUHSUHVHQWDWLRQDQGQRWKLQJUHDVRQDEO\LQGLFDWHVWRWKH WKHPDJLVWUDWHjVUHSRUWDQGUHFRPPHQGDWLRQ WULDOFRXUWWKDWDFRQIOLFWH[LVWVDFRQYLFWHGGHIHQGDQWUDLVLQJ DQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPPXVWGHPRQVWUDWH ,QKLVREMHFWLRQVWRWKHPDJLVWUDWHMXGJHjVUHFRPPHQGDWLRQ WKDWDQDFWXDOFRQIOLFWH[LVWHGWKDWDIIHFWHGKLVFRXQVHOjV 6PLWK VWDWHG WKDW KH VKRXOG EH HQWLWOHG WR DQ HYLGHQWLDU\ SHUIRUPDQFH,GDW KHDULQJ WR GHYHORS D UHFRUG LQ VXSSRUW RI KLV LQHIIHFWLYH DVVLVWDQFHFODLP+HDVVHUWHGWKDWKHmGLGHYHU\WKLQJLQKLV 5HFHQWO\LQ0LFNHQVY7D\ORU86BBB6 SRZHUWRGHPRQVWUDWHLQGLYLGXDOL]HGLQVWDQFHVRISUHMXGLFHRQ &WWKH6XSUHPH&RXUWKDGEHIRUHLWWKH DSSHDOl  s$ DW   +H DWWDFKHG KLV HDUOLHU PRWLRQ WR TXHVWLRQ RI mZKDW D GHIHQGDQW PXVW VKRZ LQ RUGHU WR UHPDQGILOHGLQWKH0LFKLJDQ&RXUWRI$SSHDOVVHHVXSUDSS GHPRQVWUDWH D 6L[WK $PHQGPHQW YLRODWLRQ ZKHUH WKH WULDO  ZKLFK KH FKDUDFWHUL]HG DV mUDLVLQJ VSHFLILF SRLQWV RI FRXUWIDLOVWRLQTXLUHLQWRDSRWHQWLDOFRQIOLFWRILQWHUHVWDERXW SUHMXGLFHlMXVWLI\LQJDKHDULQJs$DW+HFRQFOXGHG ZKLFK LW NQHZ RU UHDVRQDEO\ VKRXOG KDYH NQRZQl  ,Q m>,@WZRXOGEHLQKHUHQWO\XQIDLUDQGDGHQLDORIGXHSURFHVVWR DIILUPLQJ WKH )RXUWK &LUFXLWjV HQ EDQF GHQLDO RI WKH GLVPLVVWKLVSHWLWLRQIRUIDLOXUHWRSURYHSUHMXGLFHDIWHU0U SHWLWLRQHUjVDSSOLFDWLRQIRUWKHZULWEURXJKWRQWKHEDVLVRI 6PLWKZDVXQIDLUO\SUHYHQWHGIURPGRLQJVR7KLV&RXUWKDV LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOWKH&RXUWRSLQHG WKHDELOLW\WRRUGHUDQHYLGHQWLDU\KHDULQJRQWKLVDVSHFWDQG DWDPLQLPXPVKRXOGRUGHUVXFKDKHDULQJLQWKLVFDVHl,G 6LQFHWKLVZDVQRWDFDVHLQZKLFKDVLQ+ROORZD\ FRXQVHO SURWHVWHG KLV LQDELOLW\ VLPXOWDQHRXVO\ WR 2Q sDQXDU\   WKH GLVWULFW FRXUW DGRSWLQJ WKH UHSUHVHQWPXOWLSOHGHIHQGDQWVDQGVLQFHWKHWULDOFRXUWjV PDJLVWUDWHMXGJHjVUHFRPPHQGDWLRQGHQLHG6PLWKjV† IDLOXUHWRPDNHWKH6XOOLYDQPDQGDWHGLQTXLU\GRHVQRW SHWLWLRQ  5HJDUGLQJ 6PLWKjV REMHFWLRQ WKDW KH VKRXOG EH UHGXFHWKHSHWLWLRQHUjVEXUGHQRISURRILWZDVDWOHDVW HQWLWOHGWRDKHDULQJWKHGLVWULFWFRXUWVWDWHGWKDW6PLWKmIDLOV QHFHVVDU\ WR YRLG WKH FRQYLFWLRQ IRU SHWLWLRQHU WR WR LGHQWLI\ ZKDW IDFWV KH ZRXOG DWWHPSW WR SURYH DW DQ HVWDEOLVKWKDWWKHFRQIOLFWRILQWHUHVWDGYHUVHO\DIIHFWHG HYLGHQWLDU\KHDULQJWKDWZRXOGVXSSRUWKLVFODLPRIDGYHUVH KLVFRXQVHOjVSHUIRUPDQFH7KH&RXUWRI$SSHDOVKDYLQJ HIIHFWl,GDW7KHFRXUWQRWHGWKDWLQmKLVVWDWHFRXUW IRXQGQRVXFKHIIHFWVHH)GDWWKHGHQLDORI UHTXHVWV IRU D KHDULQJ >6PLWK@ LGHQWLILHG VSHFLILF DOOHJHG KDEHDVUHOLHIPXVWEHDIILUPHG IDLOLQJVRIFRXQVHODWWULDOlEXWLWVWDWHGWKDWVXFKHUURUVmDUH VXEMHFW WR UHYLHZ RQ WKH WULDO UHFRUG DQG GR QRW UHTXLUH D ,GDW VHSDUDWHHYLGHQWLDU\KHDULQJl,G%DVHGRQLWVRZQUHYLHZ RI WKH WULDO UHFRUG WKH GLVWULFW FRXUW IRXQG WKDW WKH mVWDWH +DYLQJ VR IRXQG WKH &RXUW H[SUHVVO\ FDXWLRQHG WKDW LWV FRXUWjV FRQFOXVLRQ WKDW GHIHQGDQW µFLWHG QR HYLGHQFH WR KROGLQJZDVOLPLWHGWRWKHLVVXHEHIRUHLWnLHZKDWEXUGHQ VXJJHVWWKDWGHIHQVHFRXQVHODFWLYHO\OHVVHQHGKLVGHIHQVHDV RISURRIXQGHUWKH6XOOLYDQUXOHZDVUHTXLUHGE\DSHWLWLRQHU DUHVXOWRIKLVSHQGLQJIHORQ\FKDUJHjLVDPSO\VXSSRUWHGE\ WRVXFFHHGRQDQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPZKHQ WKH UHFRUGl  ,G DW   7KH FRXUW FRQWLQXHG m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mXQEOLQNLQJO\l DSSOLHG E\ WKH KLVUHSUHVHQWDWLRQFDXVHGE\FRXQVHOjVFRQIOLFWRILQWHUHVWl FLUFXLWVWRDEHY\RIYDULRXVHWKLFDO DWWRUQH\FRQIOLFWVKDG QHYHUEHHQH[WHQGHGE\WKH6XSUHPH&RXUWWRFRQIOLFWVRWKHU  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  WKDQMRLQWUHSUHVHQWDWLRQDWWULDO,GFLWLQJH[DPSOHV DFWLYHO\OHVVHQHGKLVGHIHQVHDVDUHVXOWRIKLVSHQGLQJIHORQ\ RIYDULRXVW\SHVRIHWKLFDOFRQIOLFWVRILQWHUHVWVZKHUHLQWKH FKDUJH QRU GR ZH ILQG HYLGHQFH RI DQ DFWXDO FRQIOLFW RI FLUFXLWVKDYHDSSOLHGWKH6XOOLYDQUXOH7KH&RXUWWKHUHIRUH LQWHUHVW RQ WKH UHFRUGl  :LWKRXW PHQWLRQ RI HLWKHU MXU\ HPSKDVL]HGWKDWDOWKRXJKLWDGMXGLFDWHGWKHTXHVWLRQEHIRUH VHOHFWLRQ RU SOHD QHJRWLDWLRQ DQG IRFXVLQJ HQWLUHO\ RQ WKH LW LW GLG VR XQGHU WKH mDVVXPSWLRQl WKDW WKH FDVH SURSHUO\ UHFRUG RI WKH WULDO EHIRUH WKH LPSDQHOHG MXU\ WKH FRXUW SURFHHGHGXQGHU6XOOLYDQLQWKHORZHUFRXUWV+RZHYHUWKH FRQWLQXHG m>W@R WKH FRQWUDU\ GHIHQVH FRXQVHO YLJRURXVO\ &RXUW FDXWLRQHG WKDW LWV GHFLVLRQ VKRXOG QRW EH SXUVXHGKLVREMHFWLRQVDQGSUHVHQWHGDVWURQJFDVHl,GDW mPLVFRQVWUXHGl DV H[WHQGLQJ WKH 6XOOLYDQ UXOH WR FRQIOLFWV 7KHFRXUWZLWKRXWUHIHUHQFHWR6PLWKjVPRWLRQWRWKH RWKHUWKDQMRLQWUHSUHVHQWDWLRQ,G6SHFLILFDOO\WKH&RXUW 0LFKLJDQ&RXUWRI$SSHDOVIRUDUHPDQGIRUSXUSRVHVRID HPSKDVL]HGWKDW *LQWKHU KHDULQJ VWDWHG LQH[SOLFDEO\ m>L@I D FRQYLFWHG GHIHQGDQW EHOLHYHV WKDW KLV DWWRUQH\jV UHSUHVHQWDWLRQ ZDV >L@QUHVROYLQJWKLVFDVHRQWKHJURXQGVRQZKLFKLWZDV EHORZ DQ REMHFWLYH VWDQGDUG RI UHDVRQDEOHQHVV WKH SUHVHQWHG WR XV ZH GR QRW UXOH XSRQ WKH QHHG IRU WKH DSSURSULDWH SURFHGXUH LV WR VHHN D *LQWKHU KHDULQJl  ,G 6XOOLYDQSURSK\OD[LVLQFDVHVRIVXFFHVVLYHUHSUHVHQWDWLRQ FLWLQJ3HRSOHY*LQWKHU1:G0LFK >RU DOOHJHG FRQIOLFWV EDVHG XSRQ DQ\WKLQJ EXW MRLQW UHSUHVHQWDWLRQ@:KHWKHU6XOOLYDQVKRXOGEHH[WHQGHGWR & &ROODWHUDO$WWDFN VXFKFDVHVUHPDLQVDVIDUDVWKHMXULVSUXGHQFHRIWKLV &RXUWLVFRQFHUQHGDQRSHQTXHVWLRQ )HGHUDO 'LVWULFW &RXUW  2Q 'HFHPEHU   6PLWK ILOHGDSHWLWLRQLQIHGHUDOGLVWULFWFRXUWIRUDZULWRIKDEHDV ,GDWHPSKDVLVDGGHG FRUSXVSXUVXDQWWR86&†7KHSHWLWLRQDVVHUWHG WKDW%DOJRR\HQjVFRQIOLFWRILQWHUHVWHQWLWOHG6PLWKWRDQHZ & $SSOLFDWLRQWR3HWLWLRQHUjV&DVH WULDO  0LFKLJDQ$SSHOODWH&RXUWVj'HFLVLRQV 2Q 6HSWHPEHU   D PDJLVWUDWH MXGJH WR ZKRP WKH GLVWULFWFRXUWUHIHUUHGWKHPDWWHUVWDWHGm>$@QDFWXDOFRQIOLFW 7KH 0LFKLJDQ &RXUW RI $SSHDOV IRXQG WKDW 3HWLWLRQHUjV RILQWHUHVWLVREYLRXVIURPWKHIDFWWKDWGHIHQVHFRXQVHOKDG LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO FODLP IDLOHG LQDVPXFK DV FULPLQDOFKDUJHVSHQGLQJDJDLQVWKLPLQ.HQW&RXQW\DWWKH mWKHMXGJHDQGSURVHFXWRULQYROYHGLQFRXQVHOjVFDVHZHUHQRW WLPHRISHWLWLRQHUjVWULDOLQWKH.HQW&RXQW\&LUFXLW&RXUW WKH VDPH DV GHIHQGDQWjV> WKHUHIRUH@ QR DFWXDO FRQIOLFW RI 7KH DFWXDO FRQIOLFW LV UHLQIRUFHG E\ WKH IDFW WKDW GHIHQVH LQWHUHVWKDVEHHQVKRZQl3HRSOHY6PLWK1RVOLS FRXQVHO SOHG JXLOW\ WR D UHGXFHG FKDUJH MXVW D PRQWK DIWHU RS DW  0LFK &W $SS sXO\   XQSXEOLVKHG SHU SHWLWLRQHUjVWULDOls$DW+HFRQFOXGHGm8QGHUWKH FXULDPFLWLQJ3HRSOHY3LFNHQV1:G0LFK FLUFXPVWDQFHVGHIHQVHFRXQVHOKDGHYHU\UHDVRQWRPDLQWDLQ  JRRGUHODWLRQVZLWKWKHSURVHFXWRUjVRIILFHGXULQJSHWLWLRQHUjV WULDOl  ,G DW   +RZHYHU ZLWKRXW UHIHUHQFH WR MXU\ 7KH 0LFKLJDQ 6XSUHPH &RXUW DOVR KHOG WKDW 3HWLWLRQHUjV VHOHFWLRQsXGJH/LHEHUjVDGPRQLWLRQDERXWWKHSUHWULDOSOHD LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO FODLP IDLOHG RSLQLQJ DV RIIHU RU WKH GLIIHUHQFH EHWZHHQ WKH \HDU RIIHU DQG WKH IROORZV XOWLPDWH  WR \HDU VHQWHQFH WKH PDJLVWUDWH MXGJH H[SUHVVHGKLVRSLQLRQWKDW6PLWKKDGIDLOHGWRVKRZWKDWWKLV 'HIHQGDQW DUJXHV WKDW KH ZDV GHQLHG WKH HIIHFWLYH FRQIOLFWDGYHUVHO\DIIHFWHG%DOJRR\HQjVSHUIRUPDQFHDQGWKXV DVVLVWDQFH RI FRXQVHO LQ YLRODWLRQ RI KLV 6L[WK $PHQGPHQWULJKWVEHFDXVHKLVDWWRUQH\ZDVFKDUJHGZLWK  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  s$DW+DYLQJIRXQGQRFRQIOLFWRILQWHUHVWWKH&RXUW DIHORQ\SHQGLQJLQWKHVDPHFRXQW\'HIHQGDQWDVNVWKDW RI$SSHDOVGLGQRWUHDFKWKHTXHVWLRQRIZKHWKHUWKHDOOHJHG ZH SUHVXPH D FRQIOLFW RI LQWHUHVW H[LVWV ZKHQHYHU DQ FRQIOLFWKDGDQ\HIIHFWRQ%DOJRR\HQjVSHUIRUPDQFH DWWRUQH\ LV EHLQJ SURVHFXWHG LQ WKH VDPH FRXQW\ DV D FULPLQDOGHIHQGDQWZKRPKHUHSUHVHQWV:HGHFOLQHWR 0LFKLJDQ6XSUHPH&RXUW2Q$XJXVW6PLWKILOHG FUHDWH VXFK D UXOH DQG KROG LQVWHDG WKDW LQ RUGHU WR DQDSSOLFDWLRQIRUOHDYHWRDSSHDOLQWKH0LFKLJDQ6XSUHPH GHPRQVWUDWH WKDW D FRQIOLFW RI LQWHUHVW KDV YLRODWHG KLV &RXUW,QKLVDSSOLFDWLRQ6PLWKVWDWHGm0U6PLWKPDGHD 6L[WK $PHQGPHQW ULJKWV D GHIHQGDQW mPXVW HVWDEOLVK PRWLRQ WR UHPDQG IRU WKH SXUSRVH RI GHYHORSLQJ DQ WKDWDQDFWXDOFRQIOLFWRILQWHUHVWDGYHUVHO\DIIHFWHGKLV HYLGHQWLDU\UHFRUGWRVXSSRUWKLVFODLPWKDWKHGLGQRWUHFHLYH ODZ\HUjV SHUIRUPDQFHl  &X\OHU Y 6XOOLYDQ  86 WKHHIIHFWLYHDVVLVWDQFHRIFRXQVHOl$SSOLFDWLRQIRU/HDYHWR  $SSHDODWYL3HRSOHY6PLWK0LFKILOHG$XJ7KH DSSOLFDWLRQFRQWLQXHGm>W@KHGHQLDORIWKHPRWLRQZDVFOHDUO\ 3HRSOHY6PLWK1:G0LFKIRRWQRWH HUURQHRXV EHFDXVH LW GHQLHG 0U 6PLWK WKH RSSRUWXQLW\ WR RPLWWHG7KHFRXUWFRQFOXGHGWKDWm>L@QWKLVFDVHGHIHQGDQW PDNHDQHYLGHQWLDU\UHFRUGQHFHVVDU\WRVXSSRUWKLVFODLPWKDW KDVFLWHGQRHYLGHQFHWRVXJJHVWWKDWGHIHQVHFRXQVHODFWLYHO\ KHGLGQRWUHFHLYHWKHHIIHFWLYHDVVLVWDQFHRIFRXQVHOl,G OHVVHQHGKLVGHIHQVHDVDUHVXOWRIKLVSHQGLQJIHORQ\FKDUJH FLWLQJ 3HRSOH Y *LQWKHU  1:G  0LFK  QRUGRZHILQGHYLGHQFHRIDQDFWXDOFRQIOLFWRILQWHUHVWRQWKH 6PLWKDWWDFKHGWRKLVDSSOLFDWLRQDFRS\RIWKHUHPDQGPRWLRQ UHFRUG7RWKHFRQWUDU\GHIHQVHFRXQVHOYLJRURXVO\SXUVXHG ZKLFKKHKDGILOHGLQWKHORZHUDSSHOODWHFRXUW,QDIRRWQRWH KLVREMHFWLRQVDQGSUHVHQWHGDVWURQJFDVHl,GDW LQKLVDSSOLFDWLRQ6PLWKVWDWHGm>V@KRXOGWKLV&RXUWILQGWKDW DVKRZLQJRIDVSHFLILFSUHMXGLFHLVUHTXLUHGWKHDSSURSULDWH  'LVWULFW&RXUWjV2UGHU UHPHG\ZRXOGEHWRUHPDQGWKLVFDVHWRWKHWULDOFRXUWIRUWKH SXUSRVHRIKROGLQJDQHYLGHQWLDU\KHDULQJDWZKLFK0U6PLWK 7KH GLVWULFW FRXUW FRQFOXGHG WKDW WKH 0LFKLJDQ DSSHOODWH ZLOOKDYHWKHRSSRUWXQLW\WRVKRZVSHFLILFSUHMXGLFHl,GDW FRXUWVGLGQRWXQUHDVRQDEO\DSSO\6XSUHPH&RXUWSUHFHGHQW  Q  $V LWV RSSRVLWLRQ WR 6PLWKjV DSSOLFDWLRQ WKH VWDWH WR3HWLWLRQHUjVFODLPRILQHIIHFWLYHDVVLVWDQFHRIFRXQVHOEDVHG VXEPLWWHGWKHLGHQWLFDOEULHILWKDGILOHGLQWKH0LFKLJDQ&RXUW RQFRXQVHOjVDOOHJHGFRQIOLFWRILQWHUHVW7KHFRXUWKHOGWKDW RI$SSHDOVFRPSOHWHZLWKWKHLQDFFXUDWHUHSUHVHQWDWLRQWKDW WKH0LFKLJDQFRXUWVSURSHUO\IRXQGWKDWLQRUGHUIRU3HWLWLRQHU 6PLWKKDGQHYHUUHTXHVWHGDKHDULQJ$QVZHULQ2SSRVLWLRQ WR VXFFHHG RQ KLV FODLP KH QRW RQO\ KDG WR SURYH WKDW D WR $SSOLFDWLRQ IRU /HDYH WR $SSHDO 3HRSOH Y 6PLWK 1R FRQIOLFWH[LVWHGEXWWKDWWKHFRQIOLFWDGYHUVHO\DIIHFWHGKLV $WWDFKPHQWDW0LFKILOHG$XJ FRXQVHOjV SHUIRUPDQFH XQGHU 6XOOLYDQ  ,Q GRLQJ VR WKH GLVWULFWFRXUWUHMHFWHG3HWLWLRQHUjVFODLPnWKDWZKHUHKHKDV 7KH0LFKLJDQ6XSUHPH&RXUWJUDQWHG6PLWKjVDSSOLFDWLRQ VKRZQ WKDW WKH FRQIOLFW ZDV DFWXDO DQG QRW SRWHQWLDO IRUOHDYHWRDSSHDOZLWKUHVSHFWWRWZRLVVXHVRQHRIZKLFK SUHMXGLFHLVSUHVXPHGnRQWKHEDVLVWKDW6XOOLYDQFRPPDQGV ZDV mZKHWKHU WKH GHIHQGDQW ZDV GHQLHG KLV FRQVWLWXWLRQDO DVKRZLQJRIERWKDFWXDOFRQIOLFWDQGDGYHUVHHIIHFWEHIRUH ULJKWWRHIIHFWLYHDVVLVWDQFHRIFRXQVHOZKHUHDWWKHWLPHRI SUHMXGLFHZLOOEHSUHVXPHGIRUSXUSRVHVRIVXFFHHGLQJRQDQ WKHWULDOKLVDWWRUQH\KDGEHHQFKDUJHGZLWKDFULPLQDORIIHQVH LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLP%HFDXVH3HWLWLRQHU LQWKHVDPH FRXQW\l3HRSOHY6PLWK1R0LFK IDLOHGWRGHPRQVWUDWHWKDWKHZDVDGYHUVHO\HIIHFWHGE\KLV 0DU2Q0DUFKWKH0LFKLJDQ6XSUHPH FRXQVHOjVDOOHJHGFRQIOLFWDQGEHFDXVHWKHUHFRUGVKRZHGQR &RXUWDIILUPHG6PLWKjVFRQYLFWLRQDQGVHQWHQFH6HH3HRSOH LQGLFDWLRQWKDWDIDFWXDOUHFRUGFRXOGEHGHYHORSHGWRVXSSRUW Y6PLWK1:G0LFK7KHFRXUWVWDWHGWKDW 3HWLWLRQHUjV FODLP WKH GLVWULFW FRXUW GHQLHG 3HWLWLRQHUjV 6PLWK mFLWHG QR HYLGHQFH WR VXJJHVW WKDW GHIHQVH FRXQVHO DSSOLFDWLRQIRUWKHZULW  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU   04;45HYLHZRI'LVWULFW&RXUWjV2UGHU s$DW6PLWKjVPRWLRQIXUWKHUDOOHJHGWKDW%DOJRR\HQjV mSHUIRUPDQFH ZDV GHILFLHQW EHFDXVH DW WKH WLPH RI WULDO %HFDXVH WKH TXHVWLRQ RI ZKHWKHU WKH 6XOOLYDQjV OHVVHQHG FRXQVHOjVDELOLW\WRSUDFWLFHODZFRPSHWHQWO\ZDVPDWHULDOO\ VWDQGDUG RI SURRI IRU D FODLP RI LQHIIHFWLYH DVVLVWDQFH RI LPSDLUHG E\ GUXJ DQG DOFRKRO DGGLFWLRQ DQGRU PDWHULDO FRXQVHO EDVHG XSRQ DQ DWWRUQH\jV FRQIOLFW RI LQWHUHVW IRU FRQVHTXHQFHVIURPWKHSULRUDFWLYHDGGLFWLRQEHKDYLRUVl,G DQ\WKLQJ RWKHU WKDQ MRLQW UHSUHVHQWDWLRQ UHPDLQV DQ mRSHQ DW   2Q sXO\   WKH 0LFKLJDQ &RXUW RI $SSHDOV TXHVWLRQl LQ WKH MXULVSUXGHQFH RI WKH 6XSUHPH &RXUW GHQLHG WKH PRWLRQ WR UHPDQG VWDWLQJ RQO\ WKDW 6PLWK KDG 0LFNHQV6&WDWDQGLQIDFWZDVDQRSHQTXHVWLRQ mIDLO>HG@WRSHUVXDGHWKH&RXUWRIWKHQHFHVVLW\RIDUHPDQGDW DWWKHWLPH3HWLWLRQHUjVFDVHZDVKHDUG3HWLWLRQHUjVFODLPIDLOV WKLV WLPHl  3HRSOH Y 6PLWK 1R  0LFK &W $SS EHFDXVH LW LV QRW EDVHG XSRQ FOHDUO\ HVWDEOLVKHG 6XSUHPH sXO\HPSKDVLVDGGHG &RXUWSUHFHGHQWDVPDQGDWHGE\$('3$ ,QKLVEULHIRQWKHPHULWV6PLWKDUJXHGWKDW%DOJRR\HQjV ,QGHHGLQ:LOOLDPVY7D\ORU86WKH FRQFXUUHQWSURVHFXWLRQFUHDWHGDFRQIOLFWRILQWHUHVWVRVHYHUH 6XSUHPH &RXUW KHOG WKDW IRU SXUSRVHV RI WKH $('3$ WKDW6PLWKZDVHQWLWOHGWRUHOLHIZLWKRXWKDYLQJWRSURYHWKDW mZKDWHYHUZRXOGTXDOLI\DVDQROGUXOHXQGHURXU7HDJXH>Y WKH FRQIOLFW KDG DQ\ DGYHUVH HIIHFW RQ %DOJRR\HQjV /DQH  86  @ MXULVSUXGHQFH ZLOO FRQVWLWXWH UHSUHVHQWDWLRQ7KHVWDWHUHVSRQGHGLQDSSDUHQWGLVUHJDUGRI µFOHDUO\ HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH 6PLWKjVPRWLRQIRUDUHPDQGIRUDQHYLGHQWLDU\KHDULQJWKDW 6XSUHPH &RXUW RI WKH 8QLWHG 6WDWHVj XQGHU † Gl RQ WKH PDWWHU RI ZKHWKHU mFRXQVHOjV SHUIRUPDQFH ZDV 3XUVXDQWWR7HDJXHmDFDVHDQQRXQFHVDQHZUXOHLIWKHUHVXOW GHILFLHQW DQG WKDW XQGHU DQ REMHFWLYH VWDQGDUG RI ZDV QRW GLFWDWHG E\ SUHFHGHQW H[LVWLQJ DW WKH WLPH WKH UHDVRQDEOHQHVVFRXQVHOZDVQRWIXQFWLRQLQJDVDQDWWRUQH\DV GHIHQGDQWjVFRQYLFWLRQEHFDPHILQDOl6HH7HDJXHY/DQH JXDUDQWHHGXQGHUWKH6L[WK$PHQGPHQWlFLWDWLRQVRPLWWHG  86    HPSKDVLV LQ RULJLQDO  ,Q 6PLWKmGLGQRWVHHNDQHYLGHQWLDU\KHDULQJl$SSHOOHHjV GHWHUPLQLQJZKHWKHUWKHUHOLHIUHTXHVWHGZRXOGFRQVWLWXWHD %ULHI1RDW0LFK&W$SSILOHG2FW QHZ UXOH WKH TXHVWLRQ EHFRPHV mZKHWKHU D VWDWH FRXUW FRQVLGHULQJ>WKHGHIHQGDQWjV@FODLPDWWKHWLPHKLVFRQYLFWLRQ 2QsXO\WKH0LFKLJDQ&RXUWRI$SSHDOVDIILUPHG EHFDPHILQDOZRXOGKDYHIHOWFRPSHOOHGE\H[LVWLQJSUHFHGHQW 6PLWKjV FRQYLFWLRQ DQG VHQWHQFH  1RWKLQJ LQ WKH UHFRUG WR FRQFOXGH WKDW WKH UXOH >KH@ VHHNV ZDV UHTXLUHG E\ WKH LQGLFDWHGWKHH[WHQWLIDQ\WRZKLFKWKHDVVLVWDQWSURVHFXWLQJ &RQVWLWXWLRQl&DVSDULY%RKOHQ86 DWWRUQH\VLQWKH2IILFHLQYROYHGLQ6PLWKjVDQG%DOJRR\HQjV LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHGDOWHUDWLRQLQ FDVHVRUWKHLUVXSHUYLVRUVIRUPDOO\RULQIRUPDOO\H[FKDQJHG %RKOHQ LQIRUPDWLRQDERXWERWKFDVHVSDUWLFXODUO\WKHSOHDEDUJDLQV QHJRWLDWHGWRGLVSRVHRIWKHP1RUZDVWKHUHDQ\LQIRUPDWLRQ $FFRUGLQJO\DSSO\LQJ7HDJXHSULQFLSOHVWRWKHPDWWHUDW LQ WKH UHFRUG DERXW ZKHWKHU DVVLVWDQWV LQ WKH 2IILFH KDQGmFOHDUO\HVWDEOLVKHGIHGHUDOODZDVGHWHUPLQHGE\WKH FXVWRPDULO\ QHJRWLDWH SOHD EDUJDLQV ZLWK RU ZLWKRXW WKH 6XSUHPH &RXUW RI WKH 8QLWHG 6WDWHVl PHDQV WKDW WKH UXOH DSSURYDO RI WKHLU VXSHUYLVRUV LQFOXGLQJ WKH 3URVHFXWLQJ VRXJKWE\3HWLWLRQHUKHUHnWKDWWKHOHVVHQHGVWDQGDUGRISURRI $WWRUQH\1HYHUWKHOHVVZLWKRXWUHYLVLWLQJLWVHDUOLHUGHFLVLRQ IRUDQLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPDVVHWIRUWKLQ QRWWRUHPDQGDVLWVGHQLDORIWKDWPRWLRQLPSOLHGLWPLJKW &X\OHUY6XOOLYDQEHH[WHQGHGWRFRQIOLFWVRILQWHUHVWRWKHU WKDW FRXUW GLVSRVHG RI 6PLWKjV LQHIIHFWLYH DVVLVWDQFH FODLP WKDQWKRVHRIPXOWLSOHFRQFXUUHQWUHSUHVHQWDWLRQnPXVWKDYH ZLWK WKH EDUH FRQFOXVLRQ WKDW m>E@HFDXVH WKH MXGJH DQG EHHQ GLFWDWHG E\ 6XOOLYDQ  ,W FOHDUO\ ZDV QRW GLFWDWHG E\ SURVHFXWRULQYROYHGLQ>%DOJRR\HQjV@FDVHZHUHQRWWKHVDPH 6XOOLYDQ DQG DV H[SODLQHG E\ WKH &RXUW LQ 0LFNHQV WKH DVGHIHQGDQWjVQRDFWXDOFRQIOLFWRILQWHUHVWKDVEHHQVKRZQl  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  WRUHPDQGKLVFDVHWRWKHWULDOFRXUWIRUDQHYLGHQWLDU\KHDULQJ FRQFHUQV ZKLFK OHG WR WKH 6XOOLYDQ VWDQGDUG RI SURRI IRU WR GHYHORS DGGLWLRQDO IDFWXDO VXSSRUW IRU KLV LQHIIHFWLYH FRQIOLFWV RI MRLQW UHSUHVHQWDWLRQ PD\ QRW EH SUHVHQW LQ DVVLVWDQFHRIFRXQVHOFODLP0RWLRQWR5HPDQG1R VLWXDWLRQVLQYROYLQJRWKHUW\SHVRIFRQIOLFWV6HH0LFNHQV 0LFK &W $SS ILOHG 0D\   DV FRQWHPSODWHG E\ 6&WDW7KDWmLVQRWWRVXJJHVWWKDWRQHHWKLFDO 0LFKLJDQODZVHH3HRSOHY*LQWKHU1:G0LFK GXW\LVPRUHRUOHVVLPSRUWDQWWKDQDQRWKHU7KHSXUSRVHRI   7KH PRWLRQ DVVHUWHG VHYHUDO H[DPSOHV RI >WKH &RXUWjV@ +ROORZD\ DQG 6XOOLYDQ H[FHSWLRQV IURP WKH %DOJRR\HQjVDOOHJHGO\GHILFLHQWSHUIRUPDQFHDVWULDOFRXQVHO RUGLQDU\ UHTXLUHPHQWV RI 6WULFNODQG KRZHYHU LV QRW WR LQFOXGLQJ HQIRUFH WKH &DQRQV RI /HJDO (WKLFV EXW WR DSSO\ QHHGHG SURSK\OD[LVLQVLWXDWLRQVZKHUH6WULFNODQGLWVHOILVHYLGHQWO\ 0U6PLWKZKRLVEODFNDOVRZLVKHVWRFODLPRQDSSHDO LQDGHTXDWH WR DVVXUH YLQGLFDWLRQ RI WKH GHIHQGDQWjV 6L[WK WKDW FRXQVHO ZDV LQHIIHFWLYH EHFDXVH KH IDLOHG WR $PHQGPHQWULJKWWRFRXQVHOl,G FKDOOHQJH WKH FRPSRVLWLRQ RI WKH MXU\ EDVHG RQ WKH XQGHUUHSUHVHQWDWLRQ RI EODFNV  7KLV &RXUW FDQ WDNH 7KH IDFW WKDW LW ZDV QRW XQWLO 0LFNHQV WKDW WKH &RXUW MXGLFLDOQRWLFHWKDWWKHXQGHUUHSUHVHQWDWLRQRIEODFNVRQ H[SUHVVO\ VWDWHG WKDW 6XOOLYDQ GRHV QRW VXSSRUW VXFK DQ .HQW&RXQW\&LUFXLW&RXUWMXULHVLVDVXEMHFWRIRQJRLQJ H[SDQVLRQDQGWKHIDFWWKDWWKH&RXUWVDLGVRLQGLFWDGRHV FRQFHUQLQ.HQW&RXQW\&RXQVHOjVIDLOXUHWRUDLVHWKLV QRWKLQJWRFKDQJHWKHIDFWWKDWWKHUXOHVRXJKWE\3HWLWLRQHU FODLPPD\KDYHEHHQWKHUHVXOWRIDFRQIOLFWRILQWHUHVW ZDV QRW FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ DW WKH WLPH RI KLV FUHDWHGE\DIHORQ\GUXJFKDUJHSHQGLQJDJDLQVWKLPLQ FRQYLFWLRQQRULVDWWKHFXUUHQWWLPH6DLGGLIIHUHQWO\LWLVQRW WKH .HQW &RXQW\ &LUFXLW &RXUW  .HQW &RXQW\ &LUFXLW 0LFNHQVjGLFWDWKDWEDUV3HWLWLRQHUjVFODLPUDWKHULWLVWKH &RXUW 1R )+  $OWHUQDWLYHO\ 0U 6PLWK KROGLQJRI6XOOLYDQDQGRI+ROORZD\Y$UNDQVDV86 ZLVKHVWRFODLPWKDWKHZDVGHQLHGKLVIHGHUDODQGVWDWH   IURP ZKLFK 6XOOLYDQ DURVH ZKLFK EDUV FRQVWLWXWLRQDO ULJKW WR D WULDO E\ MXU\ EHFDXVH WKH MXU\ 3HWLWLRQHUjVFDVHLQDVPXFKDV6XOOLYDQDSSOLHGRQO\WRMRLQW PHPEHUV GLG QRW UHSUHVHQW D IDLU FURVVVHFWLRQ RI WKH UHSUHVHQWDWLRQ DQG WKH 6XSUHPH &RXUW KDV \HW WR H[WHQG FRPPXQLW\6HH'XUHQY0LVVLVVLSSL86 6XOOLYDQjVUHDFKWRDQ\RWKHUW\SHRIFRQIOLFW7KDWLVQRWWR 6&W/(G VD\WKDWWKH&RXUWPD\QRWGRVRLQWKHIXWXUHEXWDWWKHWLPH 3HWLWLRQHUjVFDVHZDVKHDUGDQGLQGHHGXSXQWLOWKHFXUUHQW WLPHWKH6XSUHPH&RXUWKDV\HWWRH[WHQG6XOOLYDQ%HFDXVH 3HWLWLRQHUjV FODLP GRHV QRW UHVW XSRQ D 6XOOLYDQ FRQIOLFW 3HWLWLRQHUjV FODLP GRHV QRW UHVW XSRQ mFOHDUO\ HVWDEOLVKHGl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mXQEOLQNLQJO\lDSSOLHG WKH UHFRUG PDQLIHVWO\ VKRZV WKDW WKH MXGJH ZRXOG UHIXVH D 6XOOLYDQjVOHVVHQHGVWDQGDUGWRmDOONLQGVRIDOOHJHGDWWRUQH\ KHDULQJ LQ VXFK D FDVH WKH GHIHQGDQW VKRXOG VHHN RQ DSSHDO QRW FRQIOLFWVl0LFNHQV6&WDW3HWLWLRQHUjV† D UHYHUVDO RI KLV FRQYLFWLRQ EXW DQ RUGHU GLUHFWLQJ WKH WULDO FRXUW WR FRQGXFW WKH QHHGHG KHDULQJ DSSOLFDWLRQ LV JRYHUQHG E\ $('3$ DQG WKHUHIRUH RQO\ GHFLVLRQV IURP WKH 8QLWHG 6WDWHV 6XSUHPH &RXUW PD\ EH *LQWKHU  1:G DW  HPSKDVLV DGGHG  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  UHOLHGXSRQDVDXWKRULW\IRUUHOLHI6HH86&†G XSVHWDQG6PLWKUHVSRQGHGE\WDNLQJKLPKRPH+HGHQLHG :LOOLDPV  86 DW  VHH DOVR +DUULV Y 6WRYDOO  WKDWKHKDGHYHUKDGDQ\SK\VLFDOFRQWDFWZLWK'HZDDUGRU )GWK&LUKROGLQJWKDWZKHQUHYLHZLQJ WKUHDWHQHGKLPLQDQ\ZD\ D†SHWLWLRQXQGHU$('3$mFOHDUO\HVWDEOLVKHGlIHGHUDO SUHFHGHQW IRU SXUSRVHV RI REWDLQLQJ UHOLHI LV JRYHUQHG E\ 2Q$XJXVWWKHMXU\UHWXUQHGDYHUGLFWRIJXLOW\ GHFLVLRQV IURP WKH 8QLWHG 6WDWHV 6XSUHPH &RXUW DQG LW LV 6WLOO PXWH DERXW KLV FRQIOLFW %DOJRR\HQ ILOHG QR SRVWWULDO HUURUIRUDFRXUWWRUHO\RQDXWKRULW\RWKHUWKDWRIWKH6XSUHPH PRWLRQVVXFKDVDPRWLRQIRUQHZWULDO &RXUWRIWKH8QLWHG6WDWHV %DOJRR\HQjV3OHDDQG6HQWHQFH%HWZHHQ6PLWKj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jVOHVVHQHGVWDQGDUGRISURRI FKDUJH ZLWK LWV \HDU PD[LPXP   +H DOVR FHDVHG WR WR DQ\ FRQIOLFW RWKHU WKDQ MRLQW UHSUHVHQWDWLRQ  6HH &LW\ UHSUHVHQW6PLWKEHLQJUHSODFHGDW6PLWKjVVHQWHQFLQJE\D 0DQDJHPHQW&RUSY86&KHPLFDO&R,QF)G FRXUWDSSRLQWHGDWWRUQH\ WK&LUILQGLQJWKDWWKLV&RXUWPD\DIILUPWKH GLVWULFWFRXUWIRUDQ\UHDVRQVXSSRUWHGE\WKHUHFRUG$VD 6PLWKjV3OHDDQG6HQWHQFH2Q2FWREHU6PLWK UHVXOW3HWLWLRQHUjVUHTXHVWIRUDQHYLGHQWLDU\KHDULQJVRDVWR SOHDGHGJXLOW\WREHLQJDVHFRQGIHORQ\RIIHQGHUDGPLWWLQJWR HVWDEOLVKZKHWKHUKLVFRXQVHOjVSHUIRUPDQFHZDVDIIHFWHGE\ D FRQYLFWLRQ IRU EXUJODU\ LQ  LQ H[FKDQJH IRU WKH WKHDOOHJHGFRQIOLFWRILQWHUHVWLVPRRW GLVPLVVDORIWKHIRXUWKIHORQ\RIIHQGHUFKDUJHsXGJH/LHEHU FRQVLVWHQW ZLWK KLV HYHRIWULDO ZDUQLQJ VHQWHQFHG 6PLWK &21&/86,21 WKHQWRDWHUPRIWZHQW\ILYHWRIRUW\\HDUVLPSULVRQPHQW 7KHGLVWULFWFRXUWjVRUGHUGHQ\LQJ3HWLWLRQHUjVDSSOLFDWLRQ % 'LUHFW$SSHDOV IRUDZULWRIKDEHDVFRUSXVEURXJKWXQGHU86&†LV $)),50(' 0LFKLJDQ&RXUWRI$SSHDOV7KURXJKDSSRLQWHGFRXQVHO 6PLWK DSSHDOHG KLV FRQYLFWLRQ WR WKH 0LFKLJDQ &RXUW RI $SSHDOV RQ WKH WKHRU\ DPRQJ RWKHUV WKDW %DOJRR\HQjV FRQIOLFWRILQWHUHVWUHVXOWHGLQKLVEHLQJGHSULYHGRIKLV6L[WK $PHQGPHQW ULJKW WR WKH HIIHFWLYH DVVLVWDQFH RI FRXQVHO 'HIHQGDQW$SSHOOHHjV%ULHIRQ$SSHDO1R0LFK &W$SSILOHG0D\6PLWKVLPXOWDQHRXVO\PRYHG  $OWKRXJK WKH UHFRUG GRHV QRW UHIOHFW ZK\ %DOJRR\HQ WHUPLQDWHG KLV UHSUHVHQWDWLRQ RI 6PLWK WKH IDFW WKDW 0LFKLJDQ &RXUW 5XOH  DXWRPDWLFDOO\ VXVSHQGV D ODZ\HUjV OLFHQVH WR SUDFWLFH ODZ DV RI WKH GDWH RI KLV FRQYLFWLRQ LV MXGLFLDOO\ QRWLFHDEOH  6PLWKY+RIEDXHU 1R 1R 6PLWKY+RIEDXHU  s$DWHPSKDVLVDGGHG7KHH[LVWLQJUHFRUGGRHVQRW BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB GLVFORVHZKDWGLVFXVVLRQVDERXWWKHSOHDRIIHULIDQ\WRRN SODFHEHWZHHQ6PLWKDQG%DOJRR\HQRUEHWZHHQ%DOJRR\HQ &21&855,1*,13$57',66(17,1*,13$57 DQGWKHSURVHFXWRULQWKHUHPDLQLQJIHZKRXUVEHIRUHWKHWULDO BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 6PLWKjV7ULDODQG9HUGLFW2Q$XJXVWZLWKQR 2%(5'25)(5 'LVWULFW sXGJH FRQFXUULQJ LQ SDUW DQG IXUWKHUUHFRUGPHQWLRQRIWKHSOHDRIIHUWKHWULDORI6PLWKRQ GLVVHQWLQJLQSDUW,DJUHHZLWKWKHPDMRULW\WKDW6PLWKLVQRW WKHFULPLQDOVH[XDOFRQGXFWLQGLFWPHQWFRPPHQFHGZLWKWKH QRZHQWLWOHGWRWKHZULWWKDWKHVHHNV+RZHYHU,UHVSHFWIXOO\ WULDORIWKHKDELWXDORIIHQGHUFKDUJHWRIROORZLIQHFHVVDU\ GLVDJUHH ZLWK WKH FRQFOXVLRQ WKDW KLV UHTXHVW IRU DQ $IWHUDURXWLQHYRLUGLUHDMXU\ZDVVHOHFWHG%DOJRR\HQj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jVUHTXHVWIRUDKHDULQJ DQGKLVPRWKHU'HZDDUGWHVWLILHGWKDWRQVHYHUDORFFDVLRQV KHPHW6PLWKRXWVLGHWKHJ\PIRUVRFLDODFWLYLWLHVVRPHWLPHV $ )DFWV DFFRPSDQLHG E\ 6PLWKjV UHJXODU ER\IULHQG DQG URRPPDWH sRHO +X\VHU  'HZDDUG WHVWLILHG WKDW ODWH RQ KLV ODVW DQG 6PLWKjV &ULPLQDO &DVH ,Q sDQXDU\  /DUU\ 'RQQHOO FULWLFDO HYHQLQJ ZLWK 6PLWK KH DFFRPSDQLHG 6PLWK WR KLV 6PLWK D  IRRW LQFK SRXQG JD\ $IULFDQ$PHULFDQ DSDUWPHQW  7KHUH 6PLWK PDGH YDULRXV WKUHDWV LQFOXGLQJ D PDOH ERG\EXLOGHU ZDV DUUHVWHG RQ FKDUJHV WKDW KH KDG EL]DUUHSURSRVDOWKDWWKH\ILJKWHDFKRWKHU,I6PLWKDW WKUHDWHQHGsRHO'HZDDUGDIRRWLQFKSRXQGZKLWH SRXQGVZRQ'HZDDUGZRXOGVXEPLWWRRUDOVH[LI'HZDDUG PDOHZKRH[HUFLVHGDWWKHVDPHJ\PZLWKDSDLURIVFLVVRUV DWSRXQGVZRQKHZRXOGQRWVXEPLW'HZDDUGWHVWLILHG DQG IRUFHG KLP WR VXEPLW WR RUDO VH[  $W WKH WLPH RI WKH WKDWZKHQKHUHIXVHGWRDFFHSWWKHFKDOOHQJH6PLWKWKUHDWHQHG DOOHJHGLQFLGHQW'HZDDUGZDV\HDUVROGDQG6PLWKZDV EXWGLGQRWLQMXUHKLPZLWKDSDLURIVFLVVRUVZKHUHXSRQ \HDUVROG6PLWKZDVFKDUJHGXQGHU0LFKLJDQODZZLWKRQH 'HZDDUGVXEPLWWHGDQGZHQWKRPH IHORQ\ FRXQW RI ILUVW GHJUHH FULPLQDO VH[XDO FRQGXFW DQG VXEVHTXHQWO\ DV D KDELWXDO RIIHQGHU IRXUWK GHJUHH 'HZDDUGjV PRWKHU WHVWLILHG RYHU REMHFWLRQ WKDW KHU VRQ 0D[LPXPSXQLVKPHQWIRUFRQYLFWLRQRQWKHVHFKDUJHVZDV UHWXUQHGKRPHLQWKHHDUO\KRXUVRIWKHPRUQLQJLQTXHVWLRQ OLIHLPSULVRQPHQW+LVFDVHZDVEURXJKWDQGSURVHFXWHGE\ XSVHWDQGPXWWHULQJWRKLPVHOIDQGWKDWODWHUWKDWPRUQLQJKH DQDVVLVWDQWLQWKH2IILFHRIWKH3URVHFXWLQJ$WWRUQH\RI.HQW WROGKHUVRPHWKLQJRIZKDWKDGWUDQVSLUHGWKHSUHYLRXVQLJKW &RXQW\(DUO\RQLQWKHSURFHHGLQJV6PLWKILUHGKLVFRXUW EHWZHHQKLPVHOIDQG6PLWK6KHWKHQFDOOHGWKHSROLFH DSSRLQWHG FRXQVHO DQG UHWDLQHG sHIIUH\ s %DOJRR\HQ WR FRQGXFWWKHGHIHQVH 6PLWKWRRNWKHVWDQGLQKLVRZQGHIHQVH2QWKHQLJKWLQ TXHVWLRQ DFFRUGLQJ WR 6PLWK  KH KDG D FRQYHUVDWLRQ ZLWK %DOJRR\HQjV&ULPLQDO&DVH6KRUWO\DIWHUKHZDVUHWDLQHG 'HZDDUG DERXW WKH IDFW WKDW KH 6PLWK ZDV JD\ WKDW KLV E\6PLWKRQ$SULO%DOJRR\HQZDVFKDUJHGXQGHU URRPPDWH ZDV KLV mFRPSDQLRQl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jV 0RWLRQ 7R :LWKGUDZ 6PLWKjV WULDO ZDV D OLIH VHQWHQFH  7KDW LV ZKDW \RXjUH JRLQJ LQWR 0U VFKHGXOHG WR EHJLQ RQ $XJXVW    ,Q FRXUW WKDW 6PLWK7KHSURVHFXWLRQLQWKLVFDVHKDVRIIHUHG\RXWKH PRUQLQJ%DOJRR\HQPRYHGWRZLWKGUDZDV6PLWKjVFRXQVHO RSSRUWXQLW\ WR SOHDG WR DVVDXOW ZLWK LQWHQW WR FRPPLW +HFODLPHGWKDWGLIILFXOWLHVLQHVWDEOLVKLQJFRQWDFWZLWK6PLWK FULPLQDOVH[XDOFRQGXFWILUVWGHJUHHDWHQ\HDUIHORQ\ KDGGHSULYHGKLPRIVXIILFLHQWWLPHWRFRPSOHWHWKHLUILQDQFLDO RIIHQVHLVWKDWFRUUHFW" DUUDQJHPHQWVDQGWRSUHSDUH6PLWKjVGHIHQVH+HPDGHQR PHQWLRQ RI KLV RZQ SHQGLQJ FULPLQDO FDVH  $SSDUHQWO\ 05%$/*22 VLF@DOLIHIHORQ\RIIHQVHGR\RXXQGHUVWDQGWKDW" FRQGXFWZLWKDPD[LPXPVHQWHQFHRIWHQ\HDUVLQVWHDGRIWKH OLIHVHQWHQFHZKLFK6PLWKIDFHGLIKHZHQWWRWULDODQGORVW 0560,7+ VLF@GHVLUHWRJRZLWKWKHWKIHORQ\VXSSOHPHQWLV 7+(&2857,QWKHLQWHUYHQLQJWLPHRIKRXUV WKDWFRUUHFW" ,jPRIWKHRSLQLRQWKDW0U6PLWKZLOOKDYHWRVSHDNWR 0U%DOJRR\HQZKRLVZHOOTXDOLILHGWRUHSUHVHQWKLPE\ 0560,7+