Service Employees International Union National Industry Pension Fund v. Abc Window Cleaning Company, Inc. ( 2017 )

81,7(' 67$7(6 ',675,&7 &2857
)25 7+( ',675,&7 2) &2/80%,$
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
6(59,&( (03/2<((6
,17(51$7,21$/ 81,21 1$7,21$/
,1'8675< 3(16,21 )81' et al.
3ODLQWLIIV
Y  &LYLO $FWLRQ 1R FY $%-
$%& :,1'2: &/($1,1*
&203$1< ,1&
'HIHQGDQW
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
0(025$1'80 23,1,21
3ODLQWLIIV 6HUYLFH (PSOR\HHV ,QWHUQDWLRQDO 8QLRQ 1DWLRQDO ,QGXVWU\ 3HQVLRQ )XQG DQG WKH
7UXVWHHV IRU WKH 6(,8 3HQVLRQ )XQG EURXJKW WKLV DFWLRQ DJDLQVW GHIHQGDQW $%& :LQGRZ &OHDQLQJ
&RPSDQ\ ,QF ³$%& :LQGRZ´ SXUVXDQW WR WKH (PSOR\HH 5HWLUHPHQW ,QFRPH 6HFXULW\ $FW
³(5,6$´ as amended  86& †  et seq &RPSO >'NW  @ 7KH\ DOOHJH WKDW GHIHQGDQW
IDLOHG WR VXEPLW UHSRUWV WR WKH 6(,8 3HQVLRQ )XQG DQG FRQWULEXWH WKH SURSHU DPRXQWV RZHG XQGHU
WKH UHOHYDQW FROOHFWLYH EDUJDLQLQJ DJUHHPHQW Id. ˆˆ  ± %HFDXVH GHIHQGDQW KDV QRW IXOILOOHG
LWV REOLJDWLRQV SODLQWLIIV DVN WKH &RXUW WR HQIRUFH WKH UHSRUWLQJ UHTXLUHPHQW DQG WKH\ DOOHJH WKDW
WKH\ DUH HQWLWOHG WR FROOHFW XQSDLG FRQWULEXWLRQV LQWHUHVW OLTXLGDWHG GDPDJHV DQG DWWRUQH\V¶ IHHV
DQG FRVWV Id. ˆ 
1RZ SHQGLQJ EHIRUH WKH &RXUW LV SODLQWLIIV¶ PRWLRQ IRU HQWU\ RI GHIDXOW MXGJPHQW SXUVXDQW
WR )HGHUDO 5XOH RI &LYLO 3URFHGXUH E 3OV¶ 0RW IRU 'HIDXOW - >'NW  @ ³3OV¶ 0RW´
3OV¶ 0HP LQ 6XSS RI 3OV¶ 0RW >'NW  @ ³3OV¶ 0HP´ 3ODLQWLIIV UHTXHVW WKDW WKH &RXUW RUGHU
GHIHQGDQW WR VXEPLW GHOLQTXHQW UHPLWWDQFH UHSRUWV DQG WKDW WKH &RXUW UHWDLQ MXULVGLFWLRQ WR HQWHU
MXGJPHQW IRU DQ\ FRQWULEXWLRQV LQWHUHVW RU OLTXLGDWHG GDPDJHV GHWHUPLQHG WR EH RZHG EDVHG RQ
WKRVH UHPLWWDQFH UHSRUWV 3OV¶ 0HP DW  3ODLQWLIIV KDYH DOVR DVNHG WKH &RXUW WR HQWHU DQ RUGHU
UHTXLULQJ GHIHQGDQW WR SD\ SODLQWLIIV¶ DWWRUQH\V¶ IHHV DQG FRVWV Id.
+DYLQJ FRQVLGHUHG SODLQWLIIV¶ VXEPLVVLRQV DSSOLFDEOH FDVH ODZ VWDWXWRU\ DXWKRULW\ DQG WKH
UHFRUG RI WKH FDVH DV D ZKROH WKH &RXUW ZLOO JUDQW SODLQWLIIV¶ PRWLRQ IRU GHIDXOW MXGJPHQW
%$&.*5281'
,Q -XO\  SODLQWLIIV DQG GHIHQGDQW HQWHUHG LQWR D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW
WKURXJK WKHLU EDUJDLQLQJ UHSUHVHQWDWLYHV 6HUYLFH (PSOR\HHV ,QWHUQDWLRQDO 8QLRQ /RFDO  DQG
,OOLQRLV $VVRFLDWLRQ RI %XLOGLQJ 0DLQWHQDQFH &RQWUDFWRUV UHVSHFWLYHO\ &RPSO ˆ  ([  WR
&RPSO >'NW  @ ³&%$´ $V SDUW RI WKH &%$ GHIHQGDQW DJUHHG WR DELGH E\ D 7UXVW
$JUHHPHQW XQGHU ZKLFK HPSOR\HUV PXVW ³FRQWULEXWH WR WKH >6(,8 3HQVLRQ@ )XQG WKH UHTXLUHG
FRQWULEXWLRQV DQG VKDOO PDNH VXFK UHSRUWV WR WKH )XQG DV PD\ EH UHTXLUHG E\ WKH 7UXVWHHV´ ([ 
WR &RPSO >'NW  @ ³7UXVW $JUHHPHQW´ DW  &%$ DW ± see also &RPSO ˆ  8QGHU WKH
7UXVW $JUHHPHQW DQ HPSOR\HU PXVW VXEPLW ³UHPLWWDQFH UHSRUWV´ WKDW FRQWDLQ ³WKH QDPHV RI HDFK
FRYHUHG HPSOR\HH DQG WKH QXPEHU RI FRPSHQVDEOH KRXUV IRU HDFK HPSOR\HH GXULQJ WKH UHSRUWLQJ
PRQWK´ DORQJ ZLWK WKH FRUUHVSRQGLQJ FRQWULEXWLRQV &RPSO ˆ  3XUVXDQW WR WKH 7UXVW
$JUHHPHQW DQG WKH &%$ ³>G@HIHQGDQW ZDV UHTXLUHG WR FRQWULEXWH  SHU KRXU IRU HDFK KRXU
ZRUNHG E\ FRYHUHG HPSOR\HHV´ Id. ˆ  ³>7@KLV DPRXQW LQFUHDVHG WR  SHU KRXU IRU HDFK
KRXU ZRUNHG´ HIIHFWLYH -DQXDU\   Id.
(PSOR\HUV ZKR IDLO WR VXEPLW WKH UHTXLUHG UHPLWWDQFH UHSRUWV DQG FRQWULEXWLRQV DUH ³OLDEOH
IRU LQWHUHVW DW WKH UDWH RI WHQ SHUFHQW  SHU DQQXP OLTXLGDWHG GDPDJHV DW WKH JUHDWHU RI WKH
LQWHUHVW RQ WKH GHOLQTXHQW FRQWULEXWLRQV RU WZHQW\ SHUFHQW  RI WKH GHOLQTXHQW
FRQWULEXWLRQV    DQG DWWRUQH\V¶ IHHV DQG FRVWV´ &RPSO. ˆ  'HIHQGDQW ZRXOG DOVR RZH

DGGLWLRQDO VXUFKDUJHV DQG FRQWULEXWLRQV SXUVXDQW WR WKH 3HQVLRQ 3URWHFWLRQ $FW ³33$´ LI WKH
6(,8 3HQVLRQ )XQG ZDV GHHPHG WR EH LQ FULWLFDO VWDWXV ZKLFK ZDV WKH FDVH IURP  WR 
Id. ˆˆ ± see  86& †  et seq
3ODLQWLIIV ILOHG D FRPSODLQW LQ WKLV FDVH RQ 6HSWHPEHU   VHHNLQJ ³WR FROOHFW XQSDLG
FROOHFWLYHO\ EDUJDLQHG UHPLWWDQFH UHSRUWV FRQWULEXWLRQV    >33$@ VXSSOHPHQWDO FRQWULEXWLRQV
LQWHUHVW OLTXLGDWHG GDPDJHV DQG DWWRUQH\V¶ IHHV DQG FRVWV´ DOOHJHGO\ RZHG E\ GHIHQGDQW SXUVXDQW
WR  86& †  &RPSO ˆ  3ODLQWLIIV DOOHJH WKDW IRU WKH PRQWKV RI )HEUXDU\  $SULO
 -XQH  DQG )HEUXDU\  GHIHQGDQW GLG QRW ³UHPLW FHUWDLQ UHTXLUHG UHSRUWV DQG
FRQWULEXWLRQV´ DQG ³IDLOHG WR SD\ FHUWDLQ LQWHUHVW FKDUJHV DQG OLTXLGDWHG GDPDJHV RZHG WR WKH 6(,8
3HQVLRQ )XQG´ Id. ˆ 
2Q 'HFHPEHU   WKH VXPPRQV DQG FRPSODLQW ZHUH VHUYHG RQ WKH ,OOLQRLV 6HFUHWDU\
RI 6WDWH LQ DFFRUGDQFH ZLWK )HGHUDO 5XOHV RI &LYLO 3URFHGXUH F DQG K See 6XPPRQV
5HWXUQHG ([HFXWHG >'NW  @ 'HIHQGDQW IDLOHG WR ILOH DQ DQVZHU RU RWKHUZLVH UHVSRQG WR SODLQWLIIV¶
FRPSODLQW VR SODLQWLIIV ILOHG DQ DIILGDYLW IRU GHIDXOW RQ -DQXDU\   3OV¶ $II IRU &OHUN¶V
(QWU\ RI 'HIDXOW >'NW  @ DQG WKH &OHUN RI &RXUW HQWHUHG GHIDXOW DJDLQVW GHIHQGDQW RQ -DQXDU\
  &OHUN¶V (QWU\ RI 'HIDXOW >'NW  @ 3ODLQWLIIV WKHQ ILOHG WKLV PRWLRQ RQ 0DUFK  
3OV¶ 0RW
67$1'$5' 2) 5(9,(:
)HGHUDO 5XOH RI &LYLO 3URFHGXUH D SURYLGHV WKDW WKH FOHUN RI WKH FRXUW PXVW HQWHU D
SDUW\¶V GHIDXOW ³>Z@KHQ D SDUW\ DJDLQVW ZKRP D MXGJPHQW IRU DIILUPDWLYH UHOLHI LV VRXJKW KDV IDLOHG
WR SOHDG RU RWKHUZLVH GHIHQG DQG WKDW IDLOXUH LV VKRZQ E\ DIILGDYLW RU RWKHUZLVH´ )HG 5 &LY 3
D $IWHU D GHIDXOW KDV EHHQ HQWHUHG D FRXUW PD\ HQWHU D GHIDXOW MXGJPHQW RUGHU SXUVXDQW WR
5XOH E :KHWKHU GHIDXOW MXGJPHQW LV DSSURSULDWH LV LQ WKH GLVFUHWLRQ RI WKH WULDO FRXUW Keegel

v. Key West & Caribbean Trading Co.  )G   Q '& &LU  Jackson v. Beech,
 )G   '& &LU  8SRQ HQWU\ RI GHIDXOW E\ WKH FOHUN RI WKH FRXUW WKH ³GHIDXOWLQJ
GHIHQGDQW LV GHHPHG WR DGPLW HYHU\ ZHOOSOHDGHG DOOHJDWLRQ LQ WKH FRPSODLQW´ Int’l Painters &
Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co., Inc.,  ) 6XSS G  
''&  FLWLQJ Trans World Airlines, Inc. v. Hughes  )G   G &LU 
³$OWKRXJK WKH GHIDXOW HVWDEOLVKHV D GHIHQGDQW¶V OLDELOLW\ WKH FRXUW LV UHTXLUHG WR PDNH DQ
LQGHSHQGHQW GHWHUPLQDWLRQ RI WKH VXP WR EH DZDUGHG XQOHVV WKH DPRXQW RI GDPDJHV LV FHUWDLQ´
Id FLWLQJ Adkins v. Teseo  ) 6XSS G   ''&  $FFRUGLQJO\ ZKHQ PRYLQJ IRU
D GHIDXOW MXGJPHQW WKH SODLQWLII PXVW SURYH LWV HQWLWOHPHQW WR WKH DPRXQW RI PRQHWDU\ GDPDJHV
UHTXHVWHG Id. FLWDWLRQ RPLWWHG ³,Q UXOLQJ RQ VXFK D PRWLRQ WKH FRXUW PD\ UHO\ RQ GHWDLOHG
DIILGDYLWV RU GRFXPHQWDU\ HYLGHQFH WR GHWHUPLQH WKH DSSURSULDWH VXP IRU WKH GHIDXOW MXGJPHQW´
Id. FLWDWLRQ RPLWWHG
$1$/<6,6
*LYHQ ³WKH DEVHQFH RI DQ\ UHTXHVW WR VHW DVLGH WKH GHIDXOW RU VXJJHVWLRQ E\ WKH GHIHQGDQW
WKDW LW KDV D PHULWRULRXV GHIHQVH´ WKH &RXUW FRQFOXGHV WKDW GHIDXOW MXGJPHQW LV DSSURSULDWH LQ WKLV
FDVH Int’l Painters & Allied Trades Indus. Pension Fund v. Auxier Drywall, LLC,  ) 6XSS
G   ''&  TXRWLQJ Gutierrez v. Berg Contracting Inc. 1R   :/
 DW
 ''& 0DU   7KH &OHUN RI &RXUW KDV DOUHDG\ HQWHUHG GHIHQGDQW¶V GHIDXOW
VR WKH IDFWXDO DOOHJDWLRQV LQ WKH FRPSODLQW DUH WKHUHIRUH WDNHQ DV WUXH See R.W. Amrine Drywall
Co.  ) 6XSS G DW  7KH &RXUW ILQGV WKDW SODLQWLIIV¶ FRPSODLQW VXIILFLHQWO\ DOOHJHV IDFWV WR
VXSSRUW LWV FODLPV DQG WKHUHIRUH SODLQWLIIV DUH HQWLWOHG WR GHIDXOW MXGJPHQW RQ WKH TXHVWLRQ RI
GHIHQGDQW¶V OLDELOLW\ IRU LWV IDLOXUH WR SD\ FRQWULEXWLRQV XQGHU WKH WHUPV RI WKH &%$ DQG UHODWHG

DJUHHPHQWV 7KH &RXUW IXUWKHU ILQGV WKDW SODLQWLIIV DUH HQWLWOHG WR UHFHLYH WKH UHTXHVWHG GHOLQTXHQW
UHPLWWDQFH UHSRUWV
, 3ODLQWLIIV DUH HQWLWOHG WR WKH GHOLQTXHQW UHPLWWDQFH UHSRUWV
8QGHU (5,6$ ³>H@YHU\ HPSOR\HU ZKR LV REOLJDWHG WR PDNH FRQWULEXWLRQV WR D
PXOWLHPSOR\HU SODQ    XQGHU WKH WHUPV RI D FROOHFWLYHO\ EDUJDLQHG DJUHHPHQW VKDOO WR WKH H[WHQW
QRW LQFRQVLVWHQW ZLWK ODZ PDNH VXFK FRQWULEXWLRQV LQ DFFRUGDQFH ZLWK WKH WHUPV DQG FRQGLWLRQV
RI    VXFK DJUHHPHQW´  86& †  3XUVXDQW WR WKH &%$ KHUH GHIHQGDQW ZDV REOLJDWHG
WR VXEPLW PRQWKO\ UHSRUWV LQGLFDWLQJ WKH FRQWULEXWLRQV LW RZHG WR WKH IXQG See &%$ DW ± see
also 7UXVW $JUHHPHQW DW  $V RI )HEUXDU\   GHIHQGDQW KDG QRW VXEPLWWHG VHYHUDO UHSRUWV
'HFO RI .LVKD 6PLWK >'NW  @ ³6PLWK 'HFO´ ˆˆ   ³)RU WKH PRQWKV RI )HEUXDU\ 
$SULO  -XQH  DQG )HEUXDU\  WKH >G@HIHQGDQW KDV IDLOHG WR UHPLW WKH FRQWUDFWXDOO\
UHTXLUHG FRQWULEXWLRQV    DQG UHSRUWV DQG RZHV LQWHUHVW>@ >DQG@ OLTXLGDWHG GDPDJHV WR WKH 3HQVLRQ
)XQG´ 'HIHQGDQW ZDV DOVR UHTXLUHG WR PDNH FRQWULEXWLRQV ZKLFK UHPDLQ XQSDLG
³:KHQ D FRXUW DZDUGV D GHIDXOW MXGJPHQW DJDLQVW D GHIHQGDQW IRU FRQWULEXWLRQV RZHG XQGHU
D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW (5,6$ SURYLGHV WKDW WKH FRXUW PXVW DZDUG  WKH XQSDLG
FRQWULEXWLRQV  LQWHUHVW RQ WKH XQSDLG FRQWULEXWLRQV  OLTXLGDWHG GDPDJHV DQG  UHDVRQDEOH
DWWRUQH\¶V IHHV DQG FRVWV RI WKH DFWLRQ.´ R.W. Amrine Drywall Co.  ) 6XSS G DW  FLWDWLRQV
RPLWWHG ³7KH XQSDLG FRQWULEXWLRQV LQWHUHVW DQG OLTXLGDWHG GDPDJHV JHQHUDOO\ DUH FRQVLGHUHG
µVXPV FHUWDLQ¶ SXUVXDQW WR WKH FDOFXODWLRQV PDQGDWHG LQ (5,6$ DQG WKH SDUWLHV¶ DJUHHPHQWV´ Id.
FLWLQJ Combs v. Coal & Mineral Mgmt. Servs., Inc.,  )5'   ''& 
 /LTXLGDWHG GDPDJHV VKDOO EH ³DQ DPRXQW QRW LQ H[FHVV RI  SHUFHQW´ RI WKH XQSDLG
FRQWULEXWLRQV  86& † J&LL

%HFDXVH GHIHQGDQW KDV IDLOHG WR VXEPLW UHPLWWDQFH UHSRUWV DQG FRQWULEXWLRQV IRU WKH PRQWKV
RI )HEUXDU\  $SULO  -XQH  DQG )HEUXDU\  6PLWK 'HFO ˆˆ   LW LV
LPSRVVLEOH WR GHWHUPLQH ZLWK FHUWDLQW\ WKH VSHFLILF DPRXQW RI WKH XQSDLG FRQWULEXWLRQV RZHG 8QWLO
WKHVH UHPLWWDQFH UHSRUWV DUH UHFHLYHG WKH &RXUW FDQQRW GHWHUPLQH WKH DPRXQW RI GDPDJHV LW LV
UHTXLUHG WR DZDUG Id. ˆ  ³%HFDXVH WKHVH UHSRUWV KDYH QRW EHHQ VXEPLWWHG WKH DPRXQW RI PRQH\
GXH WR WKH )XQG LV XQNQRZQ DQG FDQQRW EH DVFHUWDLQHG ZLWKRXW DQ DFFRXQWLQJ RI WKH QXPEHU RI
FRPSHQVDEOH KRXUV IRU HDFK HPSOR\HH RI $%& :LQGRZ &OHDQLQJ GXULQJ WKH UHSRUWLQJ PRQWKV´
see Serv. Emps. Int’l Union Nat’l Indus. Pension Fund v. Artharee  ) 6XSS G   ''&
 KROGLQJ WKDW DQ HPSOR\HU PXVW VXEPLW LWV GHOLQTXHQW UHPLWWDQFH UHSRUWV EHIRUH WKH FRXUW FDQ
FDOFXODWH WKH VSHFLILF DPRXQW RI GDPDJHV RZHG WR D PXOWLHPSOR\HU SODQ SODLQWLII
7KHUHIRUH WKH &RXUW ZLOO RUGHU GHIHQGDQW WR VXEPLW WKH UHSRUWV WR SODLQWLIIV
,, 3ODLQWLIIV PXVW VXEPLW PRUH LQIRUPDWLRQ EHIRUH WKH &RXUW RUGHUV DQ DZDUG RI
DWWRUQH\V¶ IHHV DQG FRVWV
3ODLQWLIIV KDYH DOVR UHTXHVWHG WKDW WKH &RXUW RUGHU GHIHQGDQW WR SD\  LQ DWWRUQH\V¶
IHHV DQG  IRU FRVWV DVVRFLDWHG ZLWK WKLV FDVH 3OV¶ 0HP DW  (5,6$ SURYLGHV WKDW LI WKH
DFWLRQ LV EURXJKW XQGHU VHFWLRQ  WR UHFRYHU FRQWULEXWLRQV WR D PXOWLHPSOR\HU SODQ SXUVXDQW WR
D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW ³WKH FRXUW VKDOO DZDUG WKH SODQ    UHDVRQDEOH DWWRUQH\¶V IHHV
DQG FRVWV´ LI WKH SODQ UHFHLYHV D MXGJPHQW LQ LWV IDYRU  86& † J'
 %DVHG RQ WKH ELOOLQJ UHFRUGV SURYLGHG E\ SODLQWLIIV WKH &RXUW GHWHUPLQHV WKDW  KRXUV
ZHUH ELOOHG DW WKH SDUWQHU UDWH RI  SHU KRXU  KRXUV ZHUH ELOOHG DW WKH OHDG DWWRUQH\ UDWH RI
 SHU KRXU  KRXUV ZHUH ELOOHG DW WKH SDUDOHJDO UDWH RI  SHU KRXU DQG  KRXUV ZHUH
ELOOHG DW WKH ODZ FOHUN UDWH RI  SHU KRXU 'HFO RI /DXUHQ 3 0F'HUPRWW LQ 6XSS RI 3OV¶ 0RW
>'NW  @ ³0F'HUPRWW 'HFO´ ([ $ WR 0F'HUPRWW 'HFO >'NW  @ ³6OLS /LVWLQJ´
$OWKRXJK WKH DPRXQW RI IHHV HTXDOV WKH  UHTXHVWHG WKH &RXUW QRWHV WKDW 0V 0F'HUPRWW¶V
GHFODUDWLRQ LQDFFXUDWHO\ GHVFULEHV WKH QXPEHU RI KRXUV ELOOHG E\ FHUWDLQ SHRSOH LQ WKLV DFWLRQ
0F'HUPRWW 'HFO ˆ  OLVWLQJ WKDW 0V 0F'HUPRWW ELOOHG  KRXUV ZKHQ WKH 6OLS /LVWLQJ SURYLGHV
WKDW VKH ELOOHG  KRXUV DQG WKDW WKH ODZ FOHUN ELOOHG  KRXUV ZKHQ VKH DFWXDOO\ ELOOHG 
KRXUV

7KH ³UHDVRQDEOHQHVV RI WKH IHHV UHTXHVWHG E\ WKH >SODLQWLII@ LV D µMXGJPHQW FDOO¶ ZKLFK RQO\
WKH >F@RXUW FDQ PDNH´ Combs  )5' DW  5HDVRQDEOH DWWRUQH\V¶ IHHV DUH FDOFXODWHG E\
³PXOWLSO\LQJ WKH QXPEHU RI KRXUV UHDVRQDEO\ H[SHQGHG RQ WKH OLWLJDWLRQ WLPHV D UHDVRQDEOH KRXUO\
UDWH´ Blum v. Stenson  86    FLWLQJ Hensley v. Eckerhart  86 
 see Bd. of Trs. of Hotel & Res. Emps. Local 25 v. JPR, Inc.  )G   '& &LU
 DSSO\LQJ WKLV VWDQGDUG LQ FDOFXODWLQJ DWWRUQH\V¶ IHHV XQGHU (5,6$ :KHQ SUHSDULQJ D IHH
DSSOLFDWLRQ SODLQWLIIV PXVW SURYLGH WKH &RXUW ZLWK ³VXIILFLHQWO\ GHWDLOHG LQIRUPDWLRQ DERXW WKH
KRXUV ORJJHG DQG WKH ZRUN GRQH´ ³EDVHG RQ FRQWHPSRUDQHRXV WLPH UHFRUGV´ LQ RUGHU WR MXVWLI\ WKH
KRXUV H[SHQGHG Nat’l Ass’n of Concerned Veterans v. Sec’y of Def.  )G   '&
&LU  $QG WKH UHDVRQDEOHQHVV RI WKH KRXUO\ UDWH LV GHWHUPLQHG E\ UHIHUHQFLQJ WKH ³SUHYDLOLQJ
PDUNHW UDWHV LQ WKH UHOHYDQW FRPPXQLW\´ DQG SURGXFLQJ ³VDWLVIDFWRU\ HYLGHQFH    WKDW WKH
UHTXHVWHG UDWHV DUH LQ OLQH ZLWK WKRVH SUHYDLOLQJ LQ WKH FRPPXQLW\´ Blum  86 DW 
7R HVWDEOLVK WKH DPRXQW RI IHHV DQG FRVWV RZHG LQ WKLV FDVH SODLQWLIIV RIIHU WKH GHFODUDWLRQ
RI OHDG DWWRUQH\ /DXUHQ 3 0F'HUPRWW 0F'HUPRWW 'HFO 7KH GHFODUDWLRQ LQFOXGHV
GRFXPHQWDWLRQ OLVWLQJ WKH KRXUV H[SHQGHG E\ HDFK DWWRUQH\ RU VWDII PHPEHU IRU HDFK WDVN
SHUIRUPHG LQ WKH SUHVHQW FDVH See 6OLS /LVWLQJ ,W DOVR SURYLGHV WKH KRXUO\ UDWHV IRU SDUWQHUV OHDG
DWWRUQH\V DQG DVVRFLDWHV SDUDOHJDOV DQG ODZ FOHUNV 0F'HUPRWW 'HFO ˆ  DQG 0V 0F'HUPRWW
DYHUV WKDW WKH KRXUO\ UDWHV FKDUJHG ³DUH FRQVLVWHQW ZLWK WKH SUHYDLOLQJ PDUNHW UDWHV RI FRXQVHO
SDUDOHJDOV DQG ODZ FOHUNV LQ WKH 'LVWULFW RI &ROXPELD >RI@ VLPLODU VNLOO IRU (5,6$ FDVHV´ Id. ˆ 
$OWKRXJK SODLQWLIIV GR SURYLGH VXIILFLHQW LQIRUPDWLRQ UHJDUGLQJ WKH KRXUV H[SHQGHG LQ WKLV
FDVH LQ WKH IRUP RI FRQWHPSRUDQHRXV WLPH UHFRUGV WKH &RXUW KDV QR UHIHUHQFH SRLQW WR GHWHUPLQH
WKH UHDVRQDEOHQHVV RI WKH KRXUO\ UDWHV RWKHU WKDQ RQH FRQFOXVRU\ VHQWHQFH LQ 0V 0F'HUPRWW¶V
GHFODUDWLRQ 7KDW LV VLPSO\ QRW HQRXJK 7KH DIILGDYLW GRHV QRW SURYLGH WKH H[WHQW RI HDFK ELOOHU¶V

OHJDO H[SHULHQFH LQ RUGHU WR LQIRUP D FRPSDULVRQ WR WKH SUHYDLOLQJ PDUNHW UDWHV QRU GRHV WKH
DIILGDYLW SRLQW WR DGGLWLRQDO HYLGHQFH RI SUHYDLOLQJ PDUNHW UDWHV VXFK DV WKH Laffey 0DWUL[ RU WKH
86 $WWRUQH\¶V 2IILFH 0DWUL[ ZKLFK WKH '& &LUFXLW KDV ³SUHYLRXVO\ VDLG OLWLJDQWV PD\ UHO\ XSRQ
ZKHQ VHHNLQJ IHHV´ Role Models Am., Inc. v. Brownlee  )G   '& &LU 
$EVHQW VXFK LQIRUPDWLRQ WKH &RXUW FDQQRW GHWHUPLQH DW WKLV WLPH ZKHWKHU WKH SURSRVHG KRXUO\
UDWHV DUH UHDVRQDEOH
$FFRUGLQJO\ EHIRUH WKH &RXUW DZDUGV SODLQWLIIV WKHLU UHTXHVWHG DWWRUQH\V¶ IHHV SODLQWLIIV
PXVW VXEPLW ³VDWLVIDFWRU\ HYLGHQFH    WKDW WKH UHTXHVWHG UDWHV DUH LQ OLQH ZLWK WKRVH SUHYDLOLQJ LQ
WKH FRPPXQLW\´ IRU DWWRUQH\V SDUDOHJDOV DQG ODZ FOHUNV LQYROYHG LQ (5,6$ OLWLJDWLRQ See Blum
 86 DW  7KLV VXEPLVVLRQ PXVW EH ILOHG ZLWKLQ IRXUWHHQ  GD\V RI WKH GDWH RI WKLV
0HPRUDQGXP 2SLQLRQ DQG DFFRPSDQ\LQJ 2UGHU
&21&/86,21
7KHUHIRUH WKH &RXUW ZLOO JUDQW SODLQWLIIV¶ PRWLRQ IRU GHIDXOW DQG RUGHU GHIHQGDQW WR SURYLGH
WKH UHPLWWDQFH UHSRUWV IRU WKH PRQWKV RI )HEUXDU\  $SULO  -XQH  DQG )HEUXDU\ 
WR SODLQWLIIV 7KH &RXUW ZLOO UHWDLQ MXULVGLFWLRQ WR HQWHU MXGJPHQW IRU DQ\ FRQWULEXWLRQV LQWHUHVW RU
OLTXLGDWHG GDPDJHV GHWHUPLQHG WR EH RZHG EDVHG RQ WKH UHPLWWDQFH UHSRUWV $QG WKH &RXUW ZLOO
HQWHU D ILQDO DWWRUQH\V¶ IHHV DQG FRVWV DZDUG DIWHU WKH &RXUW UHFHLYHV DGGLWLRQDO LQIRUPDWLRQ
VXSSRUWLQJ WKH UHTXHVW IRU IHHV DQG FRVWV
$ VHSDUDWH RUGHU ZLOO LVVXH
$0< %(50$1 -$&.621
8QLWHG 6WDWHV 'LVWULFW -XGJH
'$7( $XJXVW