- 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 5$/3+ 0225( s5 ; 3ODLQWLII$SSHOODQW 1R Y ! &,7 V@FDSDFLW\LQ>KLV@FRPSODLQWl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m>L@WLV LQ WKHLU LQGLYLGXDO FDSDFLWLHV DQG LQVWHDG VSHFLILFDOO\ FHUWDLQO\ UHDVRQDEOH WR DVN WKDW DOO SODLQWLIIV HYHQ SUR VH DGGUHVVHG WKH GHIHQGDQWV LQ WKHLU RIILFLDO FDSDFLWLHV SODLQWLIIVVRPHRIZKRPILOHVHYHUDODSSHDOVHDFK\HDUZLWK WKURXJKRXW WKH ERG\ RI WKH FRPSODLQW 6HH LG DW ,Q XV>WR@DOHUWSDUW\GHIHQGDQWVWKDWWKH\PD\EHLQGLYLGXDOO\ DGGLWLRQXQOLNH3ODLQWLIILQWKHFDVHDWKDQGWKHSODLQWLIILQ UHVSRQVLEOHLQGDPDJHVl,G *RQJROHZVNL GLG QRW PDNH UHIHUHQFH WR DQ\ DFWV E\ WKH GHIHQGDQWVZKLFKZHUHGRQHZLWKPDOLFHRULQWHQW6HHLG +RZHYHULQ3HOIUH\Y&KDPEHUV)GWK 7KHVH FULWLFDO IDFWV ZKLFK LQXUH WR 3ODLQWLIIjV EHQHILW KHUH &LUWKLV&RXUWKHOGWKDWDOWKRXJKWKHSURVHSODLQWLIIjV ZHUHDEVHQWIURPWKHSODLQWLIIjVFRPSODLQWLQ*RQJROHZVNL FRPSODLQWIDLOHGWRVSHFLI\WKDWKHZDVVXLQJWKHVWDWHRIILFHUV LQWKHLULQGLYLGXDOFDSDFLWLHVWKHSODLQWLIIFRXOGSURFHHGZLWK )LQDOO\ DQ LPSRUWDQW IDFWRU LQ WKLV FDVH LV WKDW WKH VWDWH KLVLQGLYLGXDOFODLPVEHFDXVHWKHVWDWHRIILFLDOVmZHUHJLYHQ FODLPV EURXJKW DJDLQVW WKH 2IILFHUV LQ WKHLU LQGLYLGXDO VXIILFLHQWQRWLFHRIWKHIDFWWKDWWKH\ZHUHEHLQJVXHGLQWKHLU FDSDFLWLHV ZHUH QRW GLVPLVVHG 7KDW LV WR VD\ 3ODLQWLII LQGLYLGXDOFDSDFLW\l,QUHDFKLQJWKLVFRQFOXVLRQWKH&RXUW EURXJKW FODLPV LQ UHODWLRQ WR WKH 2IILFHUVj DFWLRQV XQGHU UHOLHGXSRQDPRWLRQILOHGE\WKHSODLQWLIIRQHPRQWKDIWHUWKH $UWLFOH6HFWLRQVDQGRIWKH7HQQHVVHH&RQVWLWXWLRQDQG FRPSODLQW ZDV ILOHG ZKLFK DVNHG WKDW WKH 2KLR $WWRUQH\ WKH2IILFHUVZRXOGKDYHEHHQUHTXLUHGWRGHIHQGDJDLQVWWKHVH *HQHUDO EH EDUUHG IURP UHSUHVHQWLQJ WKH GHIHQGDQWV DQG VWDWHODZFODLPVKDGWKHGLVWULFWFRXUWQRWJUDQWHGWKH&LW\jV mVSHFLILFDOO\VWDWHGWKDWWKHGHIHQGDQWVDFWHGRXWVLGHWKHVFRSH PRWLRQIRUVXPPDU\MXGJPHQWDQGGLVPLVVHG3ODLQWLIIjVVWDWH RIWKHLUHPSOR\PHQWDQGLQEDGIDLWKZKHQWKH\FXWKLVKDLUl ODZ FODLPV ZLWKRXW SUHMXGLFH $UWLFOH 6HFWLRQ RI WKH ,G 6LPLODUO\ LQ $EGXU5DKPDQ Y 0LFKLJDQ 'HSjW RI 7HQQHVVHH&RQVWLWXWLRQUHJDUGLQJXQUHDVRQDEOHVHDUFKHVDQG &RUUHFWLRQV )G WK &LU WKLV &RXUW VHL]XUHVLVWKHVWDWHDQDORJWRWKH)RXUWK$PHQGPHQWRIWKH IRXQGWKDWDOWKRXJKWKHSODLQWLIIjVFRPSODLQWIDLOHGWRVSHFLI\ 8QLWHG6WDWHV&RQVWLWXWLRQ6HH7 & $%DUW, WKH FDSDFLW\ LQ ZKLFK WKH GHIHQGDQW ZDV EHLQJ VXHG WKH )XUWKHUPRUH $UWLFOH 6HFWLRQ RI WKH 7HQQHVVHH SODLQWLIIjVUHSO\WRWKHPRWLRQIRUVXPPDU\MXGJPHQWPDGHLW &RQVWLWXWLRQ SURYLGHV WKDW mQR PDQ VKDOO EH WDNHQ RU FOHDUWKDW WKH SODLQWLIILQWHQGHGWRVXHWKHGHIHQGDQWLQKLV LPSULVRQHG RU GLVVHL]HG RI KLV IUHHKROG OLEHUWLHV RU LQGLYLGXDOFDSDFLW\7KH&RXUWWKHUHIRUHFRQFOXGHGWKDWWKH SULYLOHJHVRURXWODZHGRUH[LOHGRULQDQ\PDQQHUGHVWUR\HG SODLQWLIIKDGSURYLGHGVXIILFLHQWQRWLFHWRWKHGHIHQGDQWWKDW RUGHSULYHGRIKLVOLIHOLEHUW\RUSURSHUW\EXWE\WKHMXGJPHQW KHZDVEHLQJVXHGLQKLVLQGLYLGXDOFDSDFLW\/LNHZLVHLQ RIKLVSHHUVRUWKHODZRIWKHODQGl6HH7 & $%DUW, 3HUU\Y&URXFKHU1R:/DW %HFDXVH WKH 2IILFHUV ZRXOG EH UHTXLUHG WR GHIHQG WK &LU $XJ WKLV &RXUW IRXQG WKDW ZKHUH WKH WKHPVHOYHV LQGLYLGXDOO\ UHJDUGLQJ WKH VWDWH ODZ WRUW FODLPV FRPSODLQWUHSHDWHGO\VSHFLILHGWKDWWKHGHIHQGDQWVDFWHGmµ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jl DQG mµZLOOIXOO\ PDOLFLRXVO\ DQG ZLWK UHFNOHVV 7KH SODFLQJ RI WKH VDLG FKDUJHV RI FRQWULEXWLQJ WR WKH LQGLIIHUHQFHWRDQGLQGLVUHJDUGRIj>WKH@SODLQWLIIjVULJKWVl GHOLQTXHQF\RIDPLQRUDQGDJJUDYDWHGDVVDXOWFRQVWLWXWH DQGZKHUHWKHGHIHQGDQWVPRYHGIRUGLVPLVVDORQWKHEDVLVRI WKHWRUWVRIPDOLFLRXVSURVHFXWLRQDQGDEXVHRISURFHVV LPPXQLW\WKHGHIHQGDQWVKDGVXIILFLHQWQRWLFHWKDWWKH\ZHUH DQGYLRODWHGWKHSODLQWLIIjVFLYLOULJKWVHQXPHUDWHGDERYH EHLQJVXHGLQGLYLGXDOO\,G7KH&RXUWIRXQGmVLJQLILFDQWl WKDW WKH GHIHQGDQWV UDLVHG WKH LPPXQLW\ GHIHQVH EHFDXVH s$DWHPSKDVLVDGGHG$VLQ3HOIUH\ZKHUHWKLV mVXFKLPPXQLW\LVH[WHQGHGWRRIILFLDOVRQO\LQWKHLUSHUVRQDO &RXUW IRXQG WKDW WKH SODLQWLIIjV DOOHJDWLRQV WKDW mWKH FDSDFLWLHVl WKHUHE\ LQGLFDWLQJ WKDW WKH GHIHQGDQWV KDG DQ GHIHQGDQWVDFWHGRXWVLGHWKHVFRSHRIWKHLUHPSOR\PHQWDQG XQGHUVWDQGLQJ WKDW WKH\ ZHUH EHLQJ VXHG LQ WKHLU SHUVRQDO LQEDGIDLWKlSURYLGHGVXIILFLHQWQRWLFHWRWKHGHIHQGDQWVWKDW FDSDFLWLHV,G WKH\ ZHUH EHLQJ VXHG LQGLYLGXDOO\ VHH )G DW 3ODLQWLIIjVDOOHJDWLRQVWKDWWKH2IILFHUVmDFW>HG@IRUWKHPVHOYHV %DVHGXSRQWKHVWDWHRIWKHODZLQWKLVFLUFXLWDVRXWOLQHG DQGZLWKPDOLFHlDQGDOVRHQJDJHGLQLQWHQWLRQDOWRUWV DERYH WKH GLVWULFW FRXUW HUUHG LQ JUDQWLQJ WKH 2IILFHUVj SURYLGHGVXIILFLHQWQRWLFHWRWKH2IILFHUVWKDWWKH\ZHUHEHLQJ EPRWLRQWRGLVPLVVZKHUHWKHFRPSODLQWSURYLGHGWKH VXHG LQ WKHLU LQGLYLGXDO FDSDFLWLHV 7KH VDPH FDQ EH VDLG 2IILFHUVVXIILFLHQWQRWLFHWKDWWKH\ZHUHEHLQJVXHGLQWKHLU ZKHQWDNLQJLQWRDFFRXQWWKDWWKH3HUU\FRXUWFRQVLGHUHGWKH LQGLYLGXDOFDSDFLWLHV$OWKRXJKLWLVWUXHWKDWWKHFDSWLRQWR SODLQWLIIjVVSHFLILFDOOHJDWLRQVWKDWWKHGHIHQGDQWVDFWHGmLQ 3ODLQWLIIjVFRPSODLQWGRHVQRWVSHFLI\WKDWWKH2IILFHUVZHUH EDGIDLWKlDQGDFWHGmZLOOIXOO\PDOLFLRXVO\DQGZLWKUHFNOHVV EHLQJVXHGLQWKHLULQGLYLGXDOFDSDFLWLHVDQGWKDWDPELJXLW\ LQGLIIHUHQFH WR DQG LQ GLVUHJDUG RI >WKH SODLQWLIIjV ULJKWV@l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s FRQFXUULQJ LQ SDUW DQG DJDLQVWZKLFKKHPXVWGHIHQG GLVVHQWLQJ LQ SDUW ILQGLQJ WKDW WKH SODLQWLIIjV DOOHJDWLRQV RI mµUHFNOHVV ZLOIXO ZDQWRQ PDOLFLRXV DQGRU )RUH[DPSOHZKDWLV PRVWWHOOLQJDUHWKHDOOHJDWLRQVVHW LQWHQWLRQDOjl FRQGXFW RQ WKH SDUW RI WKH GHIHQGDQWV ZHUH IRUWK LQ SDUDJUDSK HOHYHQ RI WKH FRPSODLQW ZKLFK VWDWH LQ VXIILFLHQWWRSURYLGHQRWLFHWRWKHGHIHQGDQWVWKDWWKH\ZHUH UHOHYDQWSDUWWKDW EHLQJVXHGLQWKHLULQGLYLGXDOFDSDFLWLHV 7KHVDLGRIILFHUVDFWLQJIRUWKHPVHOYHVDQGIRUWKH&LW\ :HDUHQRWSHUVXDGHGRWKHUZLVHE\WKH2IILFHUVj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j FRQWHQWLRQ DOUHDG\EHHQWHUPLQDWHGLQIDYRURIWKHSODLQWLIIZLWKWKH $OWKRXJK WKH *RQJROHZVNL FRXUW KHOG WKDW WKH SODLQWLIIjV VDLGFKDUJHVEHLQJGLVPLVVHGDWWKHSUHOLPLQDU\KHDULQJ IDLOXUH WR QDPH WKH GHIHQGDQWV LQ WKHLU LQGLYLGXDO
Document Info
Docket Number: 99-5258
Filed Date: 7/6/2000
Precedential Status: Precedential
Modified Date: 9/22/2015