- 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 52%(57 %522.6 ; 3ODLQWLII$SSHOODQW 1R Y ! &,7 7@KHUHZDVDnVRPHNLQGRIDSHUVRQDPRQNWKH\ ZHUHVKRZQWREHDUHOLJLRXVV\PERO VDLGLQNLQGRIDQRUDQJHFDSHZKRZDVFKDQWLQJDOORI WKH WLPH DQG DW FHUWDLQ SRLQWV ZKHQ WKH\ WKRXJKW WKH PHWDOFRQWHQWKDGEHHQVXLWDEO\DGMXVWHGWKH\XQGHUWRRN VRPHFHUHPRQLDOV\PEROLFJHVWXUHVRISXWWLQJLQDUWLIDFWV >VXFKDVPDQXVFULSWVGRJZRRGWZLJVDQGORWXVEORRPV@ LQWRWKHPROWHQPHWDO s$DW1HSKHZ'HS1HSKHZDOVRWHVWLILHGWKDWKHZDV WROG WKDW WKH FHUHPRQ\ ZDV D FXOWXUDO WUDGLWLRQ WKDW ZDV QHFHVVDU\WRLPSDUWmVRXOlWRWKHEHOO$WRQHSRLQWGXULQJWKH FHUHPRQ\KHZDVWROGWRSUD\WRZKDWHYHU*RGKHZLVKHG 2QFHWKHEHOODUULYHGLQ2DN5LGJHWKH)RXQGDWLRQDUUDQJHG IRU D 8QLYHUVLW\ RI 7HQQHVVHH SURIHVVRU DQG DUFKLWHFW WR GHVLJQ D SDYLOLRQ WR KRXVH LW 7KH SDYLOLRQ D WULDQJXODU VWUXFWXUHPDGHRIRDNZRRGDQGFRYHUHGE\DFRSSHUURRI LQFRUSRUDWHVERWK(DVWHUQDQG:HVWHUQDUFKLWHFWXUDOVW\OHVDQG 1HSKHZjV DFFRXQW RI WKH FHUHPRQ\ ZDV FRQILUPHG E\ 3URIHVVRU 6WHYHQ +HLQH D VSHFLDOLVW LQ (DVW $VLDQ UHOLJLRQV ZKR YLHZHG D YLGHRWDSH RI WKH FHUHPRQ\ +HLQH DOVR DGGHG WKH RSLQLRQ WKDW WKH PDQXVFULSWV WRVVHG LQWR WKH PHWDO ZHUH SUD\HUV %URRNVY&LW\RI2DN5LGJH 1R 1R %URRNVY&LW\RI2DN5LGJH ,,$WKDW2DN5LGJHj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j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l+DZOH\Y&LW\RI&OHYHODQG)G VLJQLILFDQFH)LQDOO\DOWKRXJK%URRNVK\SRWKHVL]HVWKDWWKH WK&LU7KXVWKHHQGRUVHPHQWWHVWLV SDUWLFXODUO\ RUGLQDQFHUHJXODWLQJWKHULQJLQJRIWKHEHOOZDVDUHDFWLRQWR FRQFHUQHG ZLWK ZKHWKHU JRYHUQPHQWDO SUDFWLFHV FUHDWH D DSHUFHLYHGGDQJHUWKDWWKHEHOOZRXOGEHXVHGIRU%XGGKLVW mV\PEROLFXQLRQlRIFKXUFKDQGVWDWH$JRVWLQLY)HOWRQ SXUSRVHV WKH UHFRUG LQGLFDWHV WKDW WKH RUGLQDQFH LQVWHDG 86 UHIOHFWHG FRQFHUQV DERXW QRLVH DQG DERXW WKH SROLWLFDO FRQWURYHUV\RYHUWKHEHOO7KHUHIRUH2DN5LGJHjVGLVSOD\RI $V D WKUHVKROG PDWWHU KRZHYHU ZH PXVW ILUVW FRQVLGHU WKH EHOO GRHV QRW HQWDLO LPSHUPLVVLEOH HQWDQJOHPHQW ZLWK ZKHWKHUWKH)ULHQGVKLS%HOOLVDUHOLJLRXVV\PERODWDOOLIWKH UHOLJLRQ EHOO LV QRW DFWXDOO\ DVVRFLDWHG ZLWK %XGGKLVP LWV GLVSOD\ FDQQRW FRQYH\ WKH PHVVDJH WKDW WKH JRYHUQPHQW HQGRUVHV %7KH6WDWH&RQVWLWXWLRQDO&KDOOHQJH %XGGKLVP6HH$OYDUDGRY&LW\RI6DQsRVH)G WK&LU)OHLVFKIUHVVHUY'LUHFWRUVRI6FK $UWLFOH,RIWKH7HQQHVVHH&RQVWLWXWLRQSURYLGHV 'LVW)GWK&LU:HFRQFOXGH WKDWDOWKRXJKWKHEHOOKDVVHFXODUVLJQLILFDQFHLQs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sDSDQEXWDOVRLQ,QGLDDQG&KLQDWRUHJXODWHWKH 7KH 7HQQHVVHH FRXUWV KDYH DSSOLHG WKH /HPRQ DQG OLYHVRI%XGGKLVWPRQNVPDUNLQJWKHWLPHIRUSUD\HUPHDOV HQGRUVHPHQW WHVWV WR GHWHUPLQH ZKHWKHU JRYHUQPHQWDO DQGRWKHUGDLO\DFWLYLWLHV,QGHHGVXFKEHOOVZHUHDWRQHWLPH FRQGXFWJLYHVDQLPSHUPLVVLEOHSUHIHUHQFHWRUHOLJLRQXQGHU UHTXLUHGLWHPVLQDOOPRQDVWHULHV+HLQHDOVRQRWHGWKDWWKH $UWLFOH,6HH6WHHOHY:DWHUV6:G )ULHQGVKLS%HOOjVNQREVDUHFRQQHFWHGWRWKHWUDGLWLRQDO 7HQQ 0DUWLQ Y %HHU %G 6:G sDSDQHVH SUDFWLFH RI ULQJLQJ WKH %XGGKLVW WHPSOH EHOO 7HQQ&W$SS$OWKRXJKWKH7HQQHVVHH&RQVWLWXWLRQ WLPHV RQ 1HZ W@KH &RQVWLWXWLRQ VHH 0DUWLQ 6:G DW %URRNV KDV SRLQWHG WR QR MXGLFLDO GHFLVLRQV FRQVWUXLQJ WKH 7HQQHVVHH &RQVWLWXWLRQjV $UWLFOH , DV SURYLGLQJ IRU JUHDWHU 6LPLODUO\ WKH (QF\FORSHGLD RI 5HOLJLRQ H[SODLQV VHSDUDWLRQRIFKXUFKDQGVWDWHWKDQWKHIHGHUDO(VWDEOLVKPHQW $QRWKHU SRSXODU %XGGKLVW ULWXDO LV WKH 1HZ WKH EHOO ULQJLQJ@ KDV EHFRPH SDUW RI WKH %XGGKLVW WUDGLWLRQ DQG LQ WKH WHPSOHV LW UHPDLQV WKH ILUVW LPSRUWDQW ULWXDO RI WKH 1HZ 7@RDVVHVVHQWDQJOHPHQWZH P\VWLFLVPl DQG ZDV EHOLHYHG WR UHDFK EH\RQG WKH HDUWKO\ KDYHORRNHGWRµWKHFKDUDFWHUDQGSXUSRVHRIWKHLQVWLWXWLRQV UHDOP mHYHQ WR SXUJDWRU\ ZKHUH WKH VRXQG FRPIRUWHG WKH WKDW DUH EHQHILWWHG WKH QDWXUH RI WKH DLG WKDW WKH 6WDWH VXIIHULQJDQGNHSWDOLYHWKHLUKRSHWKDWWKH\WRRPLJKWILQDOO\ SURYLGHV DQG WKH UHVXOWLQJ UHODWLRQVKLS EHWZHHQ WKH WUDYHOWKHSDWKWRVDOYDWLRQl',(75,&+ 6(&.(/ %8''+,67 JRYHUQPHQWDQGUHOLJLRXVDXWKRULW\jl&ROHVY&OHYHODQG%G $57 2) ($67 $6,$ 8OULFK0DPPLW]VFKWUDQV RI(GXF)GWK&LUTXRWLQJ$JRVWLQL )XUWKHUPRUHWKHEHOOWRZHUjVSODFHPHQWLQWKHWHPSOHDORQJ 86 DW DOWHUDWLRQ LQ RULJLQDO 3ROLWLFDO ZLWKRWKHUDX[LOLDU\VWUXFWXUHVVXUURXQGLQJWKHWHPSOHjVPDLQ GLYLVLYHQHVV PD\ EH VRPH HYLGHQFH RI H[FHVVLYH EXLOGLQJKDVEHHQVDLGWRV\PEROL]HmWKHFRPPXQLRQRIVDLQWV HQWDQJOHPHQW VHH /HPRQ 86 DW EXW DURXQGWKHFHQWUDO%XGGKDl0 $1(6$., %8''+,67 $57 ,1 GLYLVLYHQHVV DORQH LQ WKH DEVHQFH RI DGPLQLVWUDWLYH ,76 5(/$7,21 72 %8''+,67 ,'($/6 7KXV HQWDQJOHPHQW LV QRW HQRXJK WR UHQGHU D SUDFWLFH DOWKRXJKWKH%XGGKLVWEHOOVDUHDOVRFXOWXUDODUWLIDFWVRIWHQ XQFRQVWLWXWLRQDOVHH$&/8Y&LW\RI%LUPLQJKDP)G DGPLUHGIRUWKHLUDUWLVWLFTXDOLW\VHHHJ+ +$&.0$11 WK&LUFHUWGHQLHG86 %8''+,60 $6 $ 5(/,*,21 ,76 +,6725,&$/ '(9(/230(17 %URRNV SRLQWV WR VHYHUDO IDFWRUV DV GHPRQVWUDWLQJ $1' ,76 35(6(17 &21',7,216WKHEHOOVDUH HQWDQJOHPHQWWKHFLW\jVRZQHUVKLSDQGPDLQWHQDQFHRIWKH EHOOWKHDOOHJHGFRQWURYHUV\LQ2DN5LGJHRYHUWKHDGRSWLRQ RI WKH )ULHQGVKLS %HOO DQG WKH DGRSWLRQ RI DQ RUGLQDQFH SUD\HUV IRU JRRG KHDOWK VXFFHVV DQG ORQJ OLIH UHJXODWLQJWKHWLPHVGXULQJZKLFKWKHEHOOPD\EHUXQJ6LQFH 7 +( (1& E@RWKWKHFRQWHQWDQGWKHFRQWH[WRIWKHUHOLJLRXVGLVSOD\ DUWLFXODWHG WZR UHDVRQV IRU GLVSOD\LQJ WKH EHOO ILUVW m>W@R PXVW EH DQDO\]HG DQG WKH FRQVWLWXWLRQDOLW\ RI D GLVSOD\jV FHOHEUDWHWKHSDVWILIW\\HDUVRIJURZLQJIULHQGVKLSDQGSHDFH HIIHFW PXVW EH MXGJHG DFFRUGLQJ WR WKH VWDQGDUG RI D ZLWK sDSDQl DQG VHFRQG m>W@R H[SUHVV IRU WKH IXWXUH WKH UHDVRQDEOHREVHUYHUl.XQVHOPDQY:HVWHUQ5HVHUYH/RFDO SURIRXQGORQJLQJDQGFRPPLWPHQWWRZRUNIRUIUHHGRPZHOO 6FK 'LVW )G WK &LU HPSKDVLV LQ EHLQJMXVWLFHDQGSHDFHIRUDOOWKHSHRSOHRIWKHZRUOGls$ RULJLQDO:HKROGWKDWWKHUHDVRQDEOHREVHUYHUZRXOGQRW DW)ULHQGVKLS%HOO6WDWHPHQWRI3XUSRVH7KHVHSXUSRVHV XQGHUVWDQGWKH)ULHQGVKLS%HOOGLVSOD\LQFRQWH[WWRFRQYH\ DUH HFKRHG LQ WKH ODQJXDJH RI WKH H[SODQDWRU\ SODTXH WKDW WKH PHVVDJH WKDW WKH JRYHUQPHQW RI 2DN 5LGJH HQGRUVHV DFFRPSDQLHVWKHEHOOGLVSOD\m8QOHVVLWVHHPVWREHDVKDP %XGGKLVP:HEHOLHYHWKDWWKHSODTXHH[SODLQLQJWKHVHFXODU WKHJRYHUQPHQWjVDVVHUWLRQRIDOHJLWLPDWHVHFXODUSXUSRVH PHDQLQJ RI WKH GLVSOD\ KHOSV WR QHJDWH DQ\ LQIHUHQFH RI LVHQWLWOHGWRGHIHUHQFHl&KDXGKXULY6WDWHRI7HQQHVVHH HQGRUVHPHQW WKDW PLJKW RWKHUZLVH DULVH 6HH $&/8 Y )G WK &LU FHUW GHQLHG 86 :LONLQVRQ )G WK &LU 7KH :HKDYHQRUHDVRQWREHOLHYHWKDW2DN5LGJHjV SULPDULO\VHFXODULPDJHVDQGZRUGVLQVFULEHGRQWKHEHOOjV DVVHUWHGSXUSRVHVZHUHDVKDP%URRNVVXJJHVWVWKDWWKHEHOO H[WHULRUZRXOGKDYHDVLPLODUHIIHFW)XUWKHUPRUHZHDVVXPH ZDVLQWHQGHGLQSDUWWRV\PEROL]HDWRQHPHQWWRsDSDQIRU2DN WKDW WKH UHDVRQDEOH REVHUYHU ZRXOG NQRZ DERXW WKH EHOO 5LGJHjV UROH LQ :RUOG :DU ,, DQG WKDW WKLV SXUSRVH LV FDVWLQJFHUHPRQ\DVZHOODVDERXWWKHKLVWRU\RIWKHEHOOjV WDQWDPRXQWWRDUHOLJLRXVSXUSRVHEHFDXVHWKHERPELQJRI DGRSWLRQ DV D FHOHEUDWRU\ GLVSOD\ IRU 2DN 5LGJHjV ILIWLHWK +LURVKLPD KDV DFTXLUHG D UHOLJLRXV VLJQLILFDQFH IRU PDQ\ ELUWKGD\DQGWKHFLW\jVRIILFLDOVWDWHPHQWRIVHFXODUSXUSRVHWR SHRSOH :H GHFOLQH WR UHDG WKH (VWDEOLVKPHQW &ODXVH VR FRPPHPRUDWH2DN5LGJHjVKLVWRULFFRQQHFWLRQWRsDSDQDQG WRH[SUHVVDGHVLUHIRULQWHUQDWLRQDOSHDFHDQGIULHQGVKLS6HH &DSLWRO6TXDUH5HYLHZ $GYLVRU\%GY3LQHWWH86 2j&RQQRU s FRQFXUULQJ LQ SDUW DQG %URRNV VXJJHVWV WKDW WKH EHOO LV VXFK DQ LPSRUWDQW V\PERO RI %XGGKLVP WKDW LW LV DQDORJRXV WR WKH FUXFLIL[ LQ &KULVWLDQLW\ $V RXU FRQFXUULQJ LQ MXGJPHQW WDNLQJ DQ H[SDQVLYH YLHZ RI WKH GLVFXVVLRQ GHPRQVWUDWHV ZH EHOLHYH WKDW WKLV DVVHUWLRQ LV H[DJJHUDWHG UHDVRQDEOH REVHUYHUj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mVDQFWLILFDWLRQl RI WKH ERPELQJ RI +LURVKLPD 7KHVH DUWLFOHV ZHUH H[WHQVLYHO\ GLVFXVVHG LQ %URRNVjV PDWHULDOV EXW ZHUH QRW DFWXDOO\ LQFOXGHG LQ WKH UHFRUG DQG DUH QRW EHIRUH WKLV FRXUW
Document Info
Docket Number: 99-5516
Filed Date: 7/21/2000
Precedential Status: Precedential
Modified Date: 9/22/2015