Anthony v. DeWitt

Opinion

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

:,//,$0 $ $17+21< ,,, ; 3HWLWLRQHU$SSHOODQW    1R Y  !  '21 '(:,77:DUGHQ  5HVSRQGHQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1RnsDPHV/*UDKDP'LVWULFWsXGJH $UJXHGsDQXDU\ 'HFLGHGDQG)LOHGsXO\ %HIRUH5<$1DQG*,/0$1&LUFXLWsXGJHV32/67(5 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('  3DPHOD &RQJHU&R[ 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW'LDQH0DOORU\2)),&(2)7+($77251(<

7KH +RQRUDEOH 'DQ $DURQ 3ROVWHU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ

  $QWKRQ\Y'H:LWW 1R

*(1(5$/ &ROXPEXV 2KLR IRU $SSHOOHH  21 %5,() 3DPHOD &RQJHU&R[ 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW  'LDQH 0DOORU\ 2)),&( 2) 7+( $77251(< *(1(5$/ &ROXPEXV2KLRIRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB '$1 $$521 32/67(5 'LVWULFW sXGJH  3HWLWLRQHU $SSHOODQW:LOOLDP$$QWKRQ\DVWDWHSULVRQHULQFDUFHUDWHG IRU DJJUDYDWHG PXUGHU DSSHDOV WKH GLVWULFW FRXUWjV RUGHU GHQ\LQJKLVSHWLWLRQIRUDZULWRIKDEHDVFRUSXVILOHGSXUVXDQW WR86&†7KHRQO\LVVXHRQDSSHDOLVZKHWKHUWKH WULDO FRXUWjV DGPLVVLRQ RI WKH WHVWLPRQ\ RI WZR ZLWQHVVHV UHFRXQWLQJ VWDWHPHQWV PDGH E\ DQ RXWRIFRXUW GHFODUDQW YLRODWHGWKH6L[WK$PHQGPHQWjV&RQIURQWDWLRQ&ODXVH)RU WKH IROORZLQJ UHDVRQV WKH GHFLVLRQ RI WKH GLVWULFW FRXUW LV $)),50(' ,%DFNJURXQG 2Q2FWREHUDMXU\FRQYLFWHG:LOOLDP$QWKRQ\RI WKH DJJUDYDWHG PXUGHU RI 3DWULFLD 6PLWK ZLWK ILUHDUP VSHFLILFDWLRQV$QWKRQ\ZDVVHQWHQFHGWROLIHLPSULVRQPHQW ZLWKHOLJLELOLW\IRUSDUROHDWWKHHQGRIWZHQW\\HDUVSOXVWKUHH \HDUVDGGLWLRQDOLQFDUFHUDWLRQIRUWKHILUHDUPVSHFLILFDWLRQ 6HYHUDOPRQWKVSULRUWRWKHPXUGHU6PLWKKDGILOHGIHORQ\ WKHIW FKDUJHV ZLWK WKH SROLFH DJDLQVW $QWKRQ\jV IULHQG 5RPPHOO.QR[IRUVWHDOLQJDULQJIURPKHUDSDUWPHQWZKHQ .QR[ZDVSHUIRUPLQJDURXWLQHSHVWH[WHUPLQDWLRQ.QR[ ZKRKDGDSULRUFULPLQDOUHFRUGIHDUHGJRLQJWRMDLOIRUWKH WKHIW2QWKHHYHQLQJRIsDQXDU\5RPPHOO.QR[DQG :LOOLDP$QWKRQ\GURYHWR6PLWKjVDSDUWPHQWFRPSOH[ZLWK 5RPPHOOjV EURWKHU sRKQ .QR[ DQG 5RPPHOOjV JLUOIULHQG 0DU\ m%XII\l 3D\QH  :KHQ WKH\ JRW WR WKH DSDUWPHQW FRPSOH[sRKQDQG5RPPHOO.QR[VWD\HGLQWKHFDUZKLOH 3D\QHDQG$QWKRQ\ZDONHGWR6PLWKjVGRRU$V6PLWKVWDUWHG  $QWKRQ\Y'H:LWW 1R 1R $QWKRQ\Y'H:LWW 

,Q DQ\ HYHQW WKH DGPLVVLRQ RI 5RPPHOOjV VWDWHPHQWV WR WRRSHQWKHGRRUVKHZDVVKRW DQG NLOOHGZLWK5RPPHOOjV 5HJLQD WHOOLQJ KHU WKDW KH ZDQWHG 6PLWK VKRW EHFDXVH KH JXQ  6XEVHTXHQWO\ 5RPPHOO .QR[ DQG :LOOLDP $QWKRQ\ GLGQjWZDQWWRJRWRMDLOWKDWKHLQWHQGHGWRSD\$QWKRQ\DQG ZHUHSURVHFXWHGIRUDJJUDYDWHGPXUGHUDQGWULHGVHSDUDWHO\ 3D\QHSUHVXPDEO\IRUWKHLUVHUYLFHVDQGWKDWKHZDQWHG KHUWROLHDERXWKLVZKHUHDERXWVWKHHYHQLQJRIWKHPXUGHU $W$QWKRQ\jVWULDOWKHVWDWHFDOOHG'HWHFWLYHsDPHV6FRWW DQGKHOSKLPFUHDWHDQDOLELGLGQRWYLRODWHWKH&RQIURQWDWLRQ 'HWHFWLYH 6FRWW WHVWLILHG WKDW KH LQYHVWLJDWHG WKH WKHIW RI &ODXVH EHFDXVH WKH\ ZHUH GHFODUDWLRQV DJDLQVW 5RPPHOOjV 3DWULFLD 6PLWKjV ULQJ  $V D UHVXOW RI KLV LQYHVWLJDWLRQ SHQDO LQWHUHVW  :LOOLDPVRQ Y 8QLWHG 6WDWHV  86  FULPLQDOFKDUJHVZHUHILOHGDJDLQVW5RPPHOO.QR[DIRUPHU  HPSOR\HHRI2KLR([WHUPLQDWLQJ&R7KHFKDUJHVDJDLQVW 5RPPHOOZHUHGURSSHGDIWHU6PLWKjVPXUGHU (YHQ LI WKRVH VWDWHPHQWV WKDW ZHUH QRW FOHDUO\ DJDLQVW 5RPPHOOjV SHQDO LQWHUHVW ZHUH LQVXIILFLHQWO\ UHOLDEOH WR EH 5RELQ'XQODSDUHVLGHQWRI6PLWKjVDSDUWPHQWFRPSOH[ DGPLWWHGDWWULDOWKHLUDGPLVVLRQZRXOGFRQVWLWXWHKDUPOHVV WHVWLILHGWKDWRQsDQXDU\VKHKHDUGJXQVKRWVLQWKH HUURU EHFDXVH RI RXU FRQFOXVLRQ WKDW WKH\ GLG QRW KDYH D FRPSOH[DQGDIWHUKHDULQJWKHVKRWVORRNHGRXWKHUZLQGRZ VXEVWDQWLDODQGLQMXULRXVHIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKH DQGVDZZKDWVKHEHOLHYHGWREHDZKLWHZRPDQZLWKVKRUW MXU\jV YHUGLFW  %UHFKW  86 DW   3ULRU WR 5HJLQD ERXQF\KDLUUXQQLQJDZD\IURPWKHEXLOGLQJ6KHGLGQRWVHH .QR[jV WHVWLPRQ\ WKHUH ZDV VXIILFLHQW FRUURERUDWLQJ DQ\RQH HOVH LQ WKH FRXUW\DUG  6KH FDOOHG  ZKHQ VKH WHVWLPRQ\IURPsRKQ.QR[DQG0DU\3D\QHGHVFULELQJWKH GLVFRYHUHGWKDWKHUQHLJKERU3DWULFLD6PLWKKDGEHHQVKRW HYHQWV RQ WKH HYHQLQJ RI 6PLWKjV PXUGHU PDNLQJ 5HJLQD .QR[jV KHDUVD\ WHVWLPRQ\ LQ WKLV UHJDUG FXPXODWLYH  ,Q 'HWHFWLYH %ULDQ /DF\ ZKR KHDGHG WKH LQYHVWLJDWLRQ RI DGGLWLRQKDEHDVSHWLWLRQHUVDUHQRWHQWLWOHGWRUHOLHIEDVHGRQ 6PLWKjVPXUGHUWHVWLILHGWKDWWKHSROLFHKDGQRLPPHGLDWH WULDOHUURUXQOHVVWKH\FDQHVWDEOLVKWKDWWKHHUURUUHVXOWHGLQ VXVSHFWV$IHZGD\VODWHUKRZHYHUKHUHFHLYHGDWHOHSKRQH DFWXDOSUHMXGLFHDQLVVXH$QWKRQ\QHYHUDGGUHVVHG0F*KHH FDOOIURPDIHPDOHQDPHG5HJLQD.QR[ODWHULGHQWLILHGDV )GDW 5RPPHOOjVZLIHZKRFODLPHGWRKDYHLQIRUPDWLRQUHJDUGLQJ 6PLWKjVPXUGHU+HSHUVXDGHGKHUWRFRPHWRWKHVWDWLRQDQG ,9&RQFOXVLRQ DIWHUYHULI\LQJKHULGHQWLW\LQWHUYLHZHGKHU$VDUHVXOWRI WKDWLQWHUYLHZWKHLQYHVWLJDWLRQIRFXVHGRQ5RPPHOO.QR[ %DVHG RQ WKH IRUHJRLQJ WKH GLVWULFW FRXUWjV GHQLDO RI sRKQ .QR[ D SHUVRQ QDPHG m:LOOl DQG D ZRPDQ QDPHG $QWKRQ\jVKDEHDVSHWLWLRQLV$)),50(' m%XII\l5HJLQD.QR[DJUHHGWRDFFRPSDQ\SROLFHRIILFHUV WR WKH DSDUWPHQW RI sRKQ .QR[ ZKHUH WKH\ IRXQG DQG DSSUHKHQGHG sRKQ 5RPPHOO DQG DQ XQLGHQWLILHG ZRPDQ 'HWHFWLYH/DF\LQWHUYLHZHGsRKQ.QR[DQGWHVWLILHGWKDWDIWHU WKH LQWHUYLHZ WKH IRXU VXVSHFWV UHPDLQHG WKH VDPH EXW KH

 3D\QH ZDV QRW FKDUJHG DQG sRKQ .QR[ SOHG JXLOW\ WR WKH OHVVHU RIIHQVH RI PDQVODXJKWHU D SOHD WKDW ZDV ODWHU ZLWKGUDZQ 7KH VWDWH XOWLPDWHO\ GURSSHG WKH FKDUJHV DJDLQVW sRKQ

 7KH WHVWLPRQ\ RI WKH ZLWQHVVHV UHFRXQWHG EHORZ LV VHW IRUWK LQ WKH RUGHU LQ ZKLFK WKH\ ZHUH FDOOHG   $QWKRQ\Y'H:LWW 1R 1R $QWKRQ\Y'H:LWW 

FRXOG QRZ LGHQWLI\ m%XII\l DV 0DU\ 3D\QH DQG m:LOOl DV $SSO\LQJWKHVHIDFWRUVWRWKHSUHVHQWFDVHZHFRQFOXGHWKDW :LOOLDP $QWKRQ\  'HWHFWLYH /DF\ REVHUYHG SDUW RI WKHDGPLVVLRQRI5RPPHOOjVVWDWHPHQWVWR5HJLQD.QR[DWWKH 5RPPHOOjVLQWHUYLHZDQGSHUVRQDOO\LQWHUYLHZHG5RPPHOO WULDORI:LOOLDP$QWKRQ\GLGQRWYLRODWHWKH&RQIURQWDWLRQ DIWHUZKLFKKHDJDLQFRQILUPHGWKHVDPHIRXUVXVSHFWV &ODXVH EHFDXVH WKH\ FDUULHG SDUWLFXODUL]HG JXDUDQWHHV RI WUXVWZRUWKLQHVV)LUVW5RPPHOOPDGHH[SUHVVDVVHUWLRQVRI $IWHU'HWHFWLYH/DF\jVWHVWLPRQ\EXWEHIRUHWKHVWDWHFDOOHG SDVWIDFWDVKHGHWDLOHGWKHHYHQWVRIWKHHYHQLQJOHDGLQJXSWR 0DU\3D\QHWKHWULDOFRXUWKHOGDSUHOLPLQDU\KHDULQJXQGHU 6PLWKjVPXUGHU6HFRQG5RPPHOOKDGSHUVRQDONQRZOHGJH 2KLR (YLG 5  RXWVLGH WKH SUHVHQFH RI WKH MXU\ WR RIWKHIDFWVDVVHUWHGEHFDXVHE\DOODFFRXQWVKHZDVSUHVHQW GHWHUPLQHWKHDGPLVVLELOLW\RI3D\QHjVmKHDUVD\lWHVWLPRQ\ DW WKH DSDUWPHQW ZKHQ WKH PXUGHU RFFXUUHG  7KLUG WKH $WWKHFRQFOXVLRQRIWKHKHDULQJWKHWULDOMXGJHUXOHGWKDWWKH OLNHOLKRRGWKDW5RPPHOOj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jV EURWKHU SUHYLRXVO\EHHQGHHPHGVXIILFLHQWO\WUXVWZRUWK\6HH7RFFR sRKQDQG:LOOLDP$QWKRQ\ZKRZDVLQWURGXFHGWRKHUDV )GDW%UXWRQY3KLOOLSV)6XSSG 5RPPHOOjVmFRXVLQl7KHIRXUVSHQWDORWRIWLPHWRJHWKHU ('0LFK5RPPHOODSSDUHQWO\YLHZHGKLVZLIHDV RIWHQ ZHQW WR D FOXE FDOOHG 'HHjV DQG 5RPPHOO mDOZD\V DQDOO\EHFDXVHKHDVNHGIRUKHUDVVLVWDQFHLQFUHDWLQJDQDOLEL FDOOHGWKHVKRWVl$WWKHWLPHRIWKHPXUGHU3D\QHZDVDZDUH IRUKLPDQGFRQFHDOLQJWKHFULPH RIWKHWKHIWFKDUJHVEURXJKWDJDLQVW5RPPHOO2QsDQXDU\ 5RPPHOOFDOOHGDQGLQYLWHGKHURXW5RPPHOODUULYHG $OWKRXJKXOWLPDWHO\FRQFOXGLQJWKDW5RPPHOOjVVWDWHPHQWV DW 3D\QHjV KRPH ZLWK sRKQ .QR[ DQG :LOOLDP $QWKRQ\ WR 5HJLQD .QR[ ERUH VXIILFLHQW LQGLFLD RI UHOLDELOLW\ WKH 7KH\DOOJRWLQWRsRKQjVFDUDQGGURYHWR6PLWKjVDSDUWPHQW GLVWULFW FRXUW H[SUHVVHG FRQFHUQ ZLWK UHJDUG WR WKH IRXUWK FRPSOH[8SRQDUULYDODWWKHDSDUWPHQWFRPSOH[5RPPHOO 'XWWRQIDFWRU7KHFRXUWTXRWLQJ/HHY,OOLQRLV86 SRLQWHGRXW6PLWKjVDSDUWPHQW+HDVNHG3D\QHLIVKHZRXOG SRLQWHGRXWWKDWDmFRGHIHQGDQWjVFRQIHVVLRQ DFFRPSDQ\$QWKRQ\WRWKHDSDUWPHQWDQGNQRFNRQWKHODG\jV LVSUHVXPSWLYHO\XQUHOLDEOHDVWRWKHSDVVDJHVGHWDLOLQJWKH GRRUZKRKDGILOHGFKDUJHVDJDLQVWKLP5RPPHOOVRWKDW GHIHQGDQWjV FRQGXFW RU FXOSDELOLW\ EHFDXVH WKRVH SDVVDJHV $QWKRQ\ FRXOG WDON WR KHU DERXW GURSSLQJ WKH FKDUJHV PD\ZHOOEHWKHSURGXFWRIWKHFRGHIHQGDQWjVGHVLUHWRVKLIWRU 5RPPHOOWROG3D\QHWKDWKHZDQWHGKHUWRNQRFNRQWKHGRRU VSUHDGEODPHFXUU\IDYRUDYHQJHKLPVHOIRUGLYHUWDWWHQWLRQ EHFDXVHWKHZRPDQZRXOGQRWRSHQWKHGRRUIRUDEODFNPDQ WRDQRWKHUl7KHVHFRQFHUQVKRZHYHUDUHPRVWVDOLHQWZKHUH $QWKRQ\ EXW ZRXOG RSHQ LW IRU D ZKLWH ZRPDQ 3D\QH D FRGHIHQGDQW LPSOLFDWHV D GHIHQGDQW LQ KLV FRQIHVVLRQ WR 3D\QHUHOXFWDQWO\DJUHHGWRGRLW$IWHU3D\QHNQRFNHGRQ DXWKRULWLHVZKRKDYHWKHGLVFUHWLRQWRWUHDWWKHFRGHIHQGDQW 6PLWKj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

WRSURYHWKDW5RPPHOODFWXDOO\EHOLHYHG$QWKRQ\LQWHQGHGWR ZHQWWRmWKHEDUl$QWKRQ\JUDEEHG3D\QHE\WKHDUPVDLG WDON WR 6PLWK DERXW GURSSLQJ WKH FKDUJHV RU WKDW KH WUXO\ mPRYHELWFKlDQGUDQWRWKHFDU$VWKHIRXUGURYHDZD\ EHOLHYHG6PLWKZRXOGQRWRSHQWKHGRRUIRU$QWKRQ\UDWKHU IURP WKH DSDUWPHQW FRPSOH[ 3D\QH RSHQHG WKH GRRU DQG WKHVWDWHPHQWVZHUHDGPLVVLEOHWRVKRZZK\3D\QHZHQWWR YRPLWHG8SRQVHHLQJ WKLV5RPPHOOWZLVWHGKHUDUPDQG 6PLWKjVDSDUWPHQWZLWK$QWKRQ\5RPPHOOjVWKUHDWWRKDUP WKUHDWHQHGWRNLOOKHULIKHHYHQWKRXJKWVKHZRXOGWHOODQ\RQH 3D\QHZDVDGPLVVLEOHWRVKRZZK\VKHKHVLWDWHGWRFRQWDFW ZKDWRFFXUUHGWKDWHYHQLQJDGGLQJmULJKWJX\V"loWRZKLFK SROLFHVRRQHU%HFDXVHWKHVHRXWRIFRXUWVWDWHPHQWVGRQRW $QWKRQ\UHVSRQGHGm

WLPHVZKLOHDZDLWLQJWULDOWRDVNKHUWROLHIRUKLPDQGVKH )LQDOO\HUURULQDGPLVVLRQRIKHDUVD\WHVWLPRQ\E\WKHWULDO LGHQWLILHGWKHPXUGHUZHDSRQDVEHORQJLQJWRKHUKXVEDQG FRXUWLVKDUPOHVVLILWGLGQRWKDYHDmVXEVWDQWLDODQGLQMXULRXV HIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKHMXU\jVYHUGLFWl%UHFKW :LOOLDP$QWKRQ\SUHVHQWHGDQDOLELGHIHQVH+LVXQFOHDQG 86DWm8QGHUWKLVVWDQGDUGKDEHDVSHWLWLRQHUV DXQWWHVWLILHGWKDWRQWKHHYHQLQJRI6PLWKjVPXUGHU$QWKRQ\ DUHQRWHQWLWOHGWRKDEHDVUHOLHIEDVHGRQWULDOHUURUXQOHVVWKH\ ZDVDWKRPHZLWKWKHPIURPWKHODWHDIWHUQRRQWKURXJK FDQHVWDEOLVKWKDWLWUHVXOWHGLQµDFWXDOSUHMXGLFHjl0F*KHH SP Y$QWKRQ\@EHFDXVHWKH 6WDWHY*HER\2KLR$SSG1(G VWDWHFRXOGKDYHHOLFLWHGWKHVWDWHPHQWIURP3D\QHDWWKH 6WDOERVN\Y%HOHZ)GWK&LU HQGRIKHUWHVWLPRQ\LQVWHDGRILQWKHPLGGOH 8QLWHG6WDWHVY%UDQKDP)GWK&LU 8QLWHG6WDWHVYsRKQVRQ)GWK&LU ,G  7KDW VDLG WKH DSSHDOV FRXUW DOVR FRQFOXGHG WKDW WKH ,QWKHFDVHVXEMXGLFH3D\QHZDVDSDUWLFLSDQWLQWKH WHVWLPRQ\ ZRXOG KDYH EHHQ DGPLVVLEOH WR H[SODLQ 3D\QHjV HYHQWVWKDWRFFXUUHGDW6PLWKjVDSDUWPHQWRQWKHQLJKWRIWKH DFWLRQV  ,G  7KH DSSHOODWH FRXUW VXPPDULO\ GLVPLVVHG PXUGHU$VVXFKVKHZLWQHVVHGDQGKHDUGHYHU\WKLQJDERXW $QWKRQ\jVDUJXPHQWUHJDUGLQJWKHDGPLVVLELOLW\RI5RPPHOOjV ZKLFKVKHWHVWLILHG+HUWHVWLPRQ\GLGQRWFRQVWLWXWHKHDUVD\ VWDWHPHQWV DV LQWURGXFHG WKURXJK WKH WHVWLPRQ\ RI 5HJLQD EHFDXVH WKH RXWRIFRXUW VWDWHPHQWV ZHUH DGPLVVLEOH WR .QR[ H[SODLQKHUDFWLRQVRQWKHQLJKWRIWKHPXUGHUDQGKHULQDFWLRQ LQ DSSURDFKLQJ WKH DXWKRULWLHV DIWHUZDUGV  )RU LQVWDQFH /LNHZLVHDSSHOODQWjVDUJXPHQWVWKDW5HJLQD.QR[ZKR 5RPPHOOjVVWDWHPHQWVWR3D\QHZHUHQRWQHFHVVDULO\RIIHUHG WHVWLILHG ODWHU >WKDQ 3D\QH@ WHVWLILHG SULRU WR WKH VWDWH  $QWKRQ\Y'H:LWW 1R 1R $QWKRQ\Y'H:LWW 

LQGHSHQGHQW SURRIl  6WDWH Y &DUWHU  2KLR 6WG  KDYLQJSUHVHQWHGVXIILFLHQWHYLGHQFHRIDFRQVSLUDF\DUH V\OODEXV ˆ   1(G  2KLR   7KH 6XSUHPH QRWZHOOWDNHQ &RXUW RI 2KLR KDV KHOG KRZHYHU WKDW WKH SUHPDWXUH DGPLVVLRQ RI FRFRQVSLUDWRU VWDWHPHQWV SULRU WR WKH ,G7KH6XSUHPH&RXUWRI2KLRGHQLHG$QWKRQ\jVUHTXHVWIRU HVWDEOLVKPHQWRIWKHFRQVSLUDF\LVKDUPOHVVHUURUVRORQJDV OHDYHWRDSSHDOILQGLQJQRVXEVWDQWLDOFRQVWLWXWLRQDOTXHVWLRQ LQGHSHQGHQW SURRI RI WKH FRQVSLUDF\ ZDV DGPLWWHG LQWR 6WDWHY$QWKRQ\2KLR6WG1(G HYLGHQFHEHIRUHWKHFDVHZDVVXEPLWWHGWRWKHMXU\6WDWHY +LVSHWLWLRQIRUSRVWFRQYLFWLRQUHOLHIZDVDOVRGHQLHG sDORZLHF2KLR6WG1(G2KLR  2Q KDEHDV UHYLHZ $QWKRQ\ DJDLQ DUJXHG WKDW WKH VWDWH IDLOHGWROD\DSURSHUIRXQGDWLRQIRUDGPLVVLRQRIWKHKHDUVD\ )LQGLQJWKDWDFRQVSLUDF\GRHVQRWQHFHVVDULO\HQGZLWKWKH VWDWHPHQWVDWWULEXWHGWR5RPPHOO.QR[7KHGLVWULFWFRXUW FRPPLVVLRQ RI D FULPH WKH 2KLR 6XSUHPH &RXUW KDV GHWHUPLQHGWKDW3D\QHjVUHFRXQWLQJRI5RPPHOOjVVWDWHPHQWV LQWHUSUHWHGWKHODQJXDJHRI5XOH'  HWRSHUPLWWKH GLGQRWGHQ\$QWKRQ\KLV6L[WK$PHQGPHQWULJKWWRFRQIURQW DGPLVVLRQRIRXWRIFRXUWVWDWHPHQWVRIDFRFRQVSLUDWRUPDGH ZLWQHVVHVEHFDXVHWKH\GLGQRWFRQVWLWXWHKHDUVD\mLQOLJKWRI GXULQJFRQFHDOPHQWRIWKHFULPH6WDWHY6KHOWRQ2KLR WKH FLUFXPVWDQFHV SUHVHQWl  ,W IXUWKHU GHWHUPLQHG WKDW WKH 6WG  V\OODEXV ˆ   1(G    ,Q WKLV DGPLVVLRQRI5RPPHOOjVRXWRIFRXUWVWDWHPHQWVWR5HJLQD UHVSHFWWKH2KLRUXOHGLIIHUVIURPWKHWUDGLWLRQDOFRPPRQODZ .QR[DOVRGLGQRWYLRODWHWKH&RQIURQWDWLRQ&ODXVHEHFDXVH IRUPXODWLRQRIWKHFRFRQVSLUDWRUH[FHSWLRQZKLFKGRHVQRW XQGHU 'XWWRQ Y (YDQV  86    WKH\ ERUH LQFOXGHVWDWHPHQWVPDGHGXULQJWKHFRQFHDOPHQWSKDVHRIWKH VXIILFLHQWLQGLFLDRIUHOLDELOLW\EDVHGRQWKHIDFWWKDWWKH\ZHUH FULPH'XWWRQ86DWFLWLQJ/XWZDNY8QLWHG6WDWHV PDGH VKRUWO\ DIWHU WKH FULPH ZLWKLQ WKH FRQILQHV RI WKH 86.UXOHZLWFKY8QLWHG6WDWHV86 KXVEDQGZLIHUHODWLRQVKLSZHUHXWWHUHGYROXQWDULO\DQGZHUH  (YHQLIWKHRXWRIFRXUWVWDWHPHQWLVQRWILUPO\ DJDLQVW5RPPHOOjVSHQDOLQWHUHVW)LQDOO\FLWLQJ%UHFKWY URRWHG WR D KHDUVD\ H[FHSWLRQ WKH VWDWHPHQW PD\ \HW EH $EUDKDPVRQ86DQG.RWWHDNRVY8QLWHG DGPLWWHG EXW RQO\ XSRQ mD VKRZLQJ RI SDUWLFXODUL]HG 6WDWHV86WKHGLVWULFWFRXUWQRWHGWKDWHYHQ JXDUDQWHHVRIWUXVWZRUWKLQHVVl+LOO)GDWTXRWLQJ LI5HJLQDjVWHVWLPRQ\FRQVWLWXWHGLPSHUPLVVLEOHKHDUVD\WKH 2KLR Y 5REHUWV  86 DW   7KH mSDUWLFXODUL]HG VWDWHPHQWVGLGQRWKDYHDmVXEVWDQWLDODQGLQMXULRXVHIIHFWlRQ JXDUDQWHHVl DUH GHWHUPLQHG EDVHG XSRQ WKH WRWDOLW\ RI WKHMXU\jVYHUGLFW FLUFXPVWDQFHVUHVWULFWHGWRWKRVHWKDWVXUURXQGWKHPDNLQJRI WKHVWDWHPHQWDQGUHQGHUWKHGHFODUDQWSDUWLFXODUO\ZRUWK\RI ,,6WDQGDUGRI5HYLHZ EHOLHI:ULJKW86DW :HUHYLHZGHQRYRDGLVWULFWFRXUW VGLVPLVVDORID† SHWLWLRQEXWUHYLHZWKHFRXUWjVIDFWXDOILQGLQJVIRUFOHDUHUURU &DUVRQ Y %XUNH  )G   WK &LU   7KH GLVWULFWFRXUWLVQRWDXWKRUL]HGWRJUDQWDKDEHDVSHWLWLRQZLWK  UHVSHFWWRDQ\FODLPWKDWZDVDGMXGLFDWHGRQWKHPHULWVLQWKH 7R DGPLW D VWDWHPHQW XQGHU 5XOH '  H ILYH FRQGLWLRQV PXVW EH PHW  D FRQVSLUDF\ PXVW H[LVW  WKH GHIHQGDQW PXVW KDYH EHHQ D VWDWHFRXUWVXQOHVVWKHDGMXGLFDWLRQUHVXOWHGLQDGHFLVLRQWKDW SDUWLFLSDQW LQ WKH FRQVSLUDF\  WKH GHFODUDQW PXVW KDYH EHHQ D ZDVFRQWUDU\WRRULQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQ SDUWLFLSDQW LQ WKH FRQVSLUDF\  WKH VWDWHPHQW WR EH LQWURGXFHG PXVW KDYH RI FOHDUO\ HVWDEOLVKHG IHGHUDO ODZ RU  ZDV EDVHG RQ DQ EHHQ PDGH LQ WKH FRXUVH RI WKH FRQVSLUDF\ DQG  WKH VWDWHPHQW PXVW KDYH EHHQ LQ IXUWKHUDQFH RI WKH FRQVSLUDF\ $9,90 Y 0LOR  2KLR 6WG XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH    1(G    DEURJDWHG RQ DOW JURXQGV E\ 6WDWH HYLGHQFHSUHVHQWHGWRWKHVWDWHFRXUWV86&†G Y $GNLQV  2KLR $SSG   1(G   8QGHUWKHmFRQWUDU\WRlFODXVHDIHGHUDOKDEHDVFRXUWPD\  $QWKRQ\Y'H:LWW 1R 1R $QWKRQ\Y'H:LWW 

JUDQW WKH SHWLWLRQ LI WKH VWDWH FRXUW DUULYHV DW D FRQFOXVLRQ SURKLELW WKH DGPLVVLRQ RI KHDUVD\ VWDWHPHQWV DJDLQVW D RSSRVLWHWRWKDWUHDFKHGE\WKH6XSUHPH&RXUWRQDTXHVWLRQ FULPLQDO GHIHQGDQW HYHQ WKRXJK WKH DGPLVVLRQ RI VXFK RIODZRULIWKHVWDWHFRXUWGHFLGHVDFDVHGLIIHUHQWO\WKDQWKH VWDWHPHQWVPLJKWEHWKRXJKWWRYLRODWHWKHOLWHUDOWHUPVRIWKH 6XSUHPH&RXUWKDVRQDVHWRIPDWHULDOO\LQGLVWLQJXLVKDEOH &ODXVHl86DWFLWLQJ0DWWR[Y8QLWHG6WDWHV IDFWV:LOOLDPVY7D\ORU868QGHU 863RLQWHUY7H[DV86 WKHmXQUHDVRQDEOHDSSOLFDWLRQlFODXVHDIHGHUDOKDEHDVFRXUW  7KH6XSUHPH&RXUWKDVHVWDEOLVKHGDWZRSDUWWHVW PD\JUDQWWKHSHWLWLRQLIWKHVWDWHFRXUWLGHQWLILHVWKHFRUUHFW IRU GHWHUPLQLQJ ZKHWKHU KHDUVD\ LV DGPLVVLEOH XQGHU WKH JRYHUQLQJOHJDOSULQFLSOHIURPWKH6XSUHPH&RXUWjVGHFLVLRQV &RQIURQWDWLRQ&ODXVH+LOOY%ULJDQR)G EXW XQUHDVRQDEO\ DSSOLHV WKDW SULQFLSOH WR WKH IDFWV RI WKH WK&LUFHUWGHQLHG86FLWLQJ SHWLWLRQHUjVFDVH,G 2KLRY5REHUWV86 +HDUVD\HYLGHQFH LVDGPLVVLEOHRQO\ZKHUHWKHGHFODUDQWLVXQDYDLODEOHDQG ,,,$QDO\VLV  WKH KHDUVD\ VWDWHPHQW EHDUV DGHTXDWH mLQGLFLD RI UHOLDELOLW\l+LOO)GDWFLWLQJ2KLRY5REHUWV 7KH TXHVWLRQ SUHVHQWHG LV ZKHWKHU WKH RXWRIFRXUW 86 DW   5HOLDELOLW\ LV LQIHUUHG ZKHUH WKH RXWRIFRXUW VWDWHPHQWVRI5RPPHOO.QR[DGPLWWHGWKURXJKWKHWHVWLPRQ\ VWDWHPHQWLVVXEMHFWWRDILUPO\URRWHGKHDUVD\H[FHSWLRQ,G RI0DU\3D\QHDQG5HJLQD.QR[GXULQJWKHWULDORI:LOOLDP 7KH6XSUHPH&RXUWKDVGHWHUPLQHGWKDWLIWKHRXWRIFRXUW $QWKRQ\ YLRODWHG $QWKRQ\jV 6L[WK $PHQGPHQW ULJKW WR GHFODUDQWLVDFRFRQVSLUDWRURIWKHGHIHQGDQWWKHSURVHFXWLRQ FRQIURQWZLWQHVVHV7KH&RQIURQWDWLRQ&ODXVHRIWKH6L[WK QHHGQRWHVWDEOLVKWKHXQDYDLODELOLW\RIWKHGHFODUDQW8QLWHG $PHQGPHQW SURYLGHV m,Q DOO FULPLQDO SURVHFXWLRQV WKH 6WDWHVY,QDGL86RUWKHUHOLDELOLW\RI DFFXVHGVKDOOHQMR\WKHULJKWWREHFRQIURQWHGZLWKWKH KLV VWDWHPHQWV %RXUMDLO\ Y 8QLWHG 6WDWHV  86  ZLWQHVVHV DJDLQVWKLPl86&RQVWDPHQG9,,GDKRY +RZHYHUWKH%RXUMDLO\KROGLQJLVOLPLWHGWRWKRVH :ULJKW867KHSXUSRVHRIWKH&ODXVH VWDWHPHQWV WKDW IDOO ZLWKLQ WKH WUDGLWLRQDO FRPPRQ ODZ LVWRmHQVXUHWKHUHOLDELOLW\RIWKHHYLGHQFHDJDLQVWDFULPLQDO IRUPXODWLRQRIWKHKHDUVD\H[FHSWLRQ$WFRPPRQODZWKH GHIHQGDQWE\VXEMHFWLQJLWWRULJRURXVWHVWLQJLQWKHFRQWH[WRI KHDUVD\ H[FHSWLRQ WKDW DOORZV HYLGHQFH RI DQ RXWRIFRXUW DQ DGYHUVDU\ SURFHHGLQJ EHIRUH WKH WULHU RI IDFWl  /LOO\ Y VWDWHPHQWRIRQHFRQVSLUDWRUWREHDGPLWWHGDJDLQVWKLVIHOORZ 9LUJLQLD  86    LQWHUQDO TXRWDWLRQ FRQVSLUDWRUDSSOLHVRQO\LIWKHVWDWHPHQWZDVPDGHGXULQJWKH RPLWWHG6XFKWHVWLQJLVQRWSRVVLEOHZKHUHWKHJRYHUQPHQW FRXUVHDQGLQIXUWKHUDQFHRIWKHFRQVSLUDF\'XWWRQ86 HQGHDYRUVWRSUHVHQWWKHKHDUVD\VWDWHPHQWVRIDQRXWRIFRXUW DW GHFODUDQWWKURXJKWKHWHVWLPRQ\RIDZLWQHVV/LOO\86 DWFLWLQJ&DOLIRUQLDY*UHHQ86  7KH2KLR5XOHVRI(YLGHQFHSURYLGHWKDWDVWDWHPHQWLVQRW KHDUVD\LILWLVPDGHmE\DFRFRQVSLUDWRURIDSDUW\GXULQJWKH 7KH&RQIURQWDWLRQ&ODXVHUHDGOLWHUDOO\ZRXOGEDUWKHXVH FRXUVHDQGLQIXUWKHUDQFHRIWKHFRQVSLUDF\XSRQLQGHSHQGHQW RIDOORXWRIFRXUWVWDWHPHQWVRIDGHFODUDQWZKRLVQRWSUHVHQW SURRIRIWKHFRQVSLUDF\l2KLR(YLG5'  H8QGHU DW WULDO KRZHYHU WKH 6XSUHPH &RXUW KDV UHMHFWHG VXFK DQ 2KLR SURFHGXUH WKH VWDWHPHQW RI D FRFRQVSLUDWRU LV QRW H[WUHPH LQWHUSUHWDWLRQ RI WKLV &ODXVH  8QLWHG 6WDWHV Y DGPLVVLEOHXQWLOmWKHSURSRQHQWRIWKHVWDWHPHQWKDVPDGHD ,VPRLOD)GWK&LUFHUWGHQLHG SULPD IDFLH VKRZLQJ RI WKH H[LVWHQFH RI WKH FRQVSLUDF\ E\ 86FLWLQJ,GDKR86DW6KHUPDQY 6FRWW)GWK&LUFHUWGHQLHG86     ,Q ,GDKR IRU H[DPSOH WKH 6XSUHPH &RXUW QRWHG WKDW WKH &RQIURQWDWLRQ &ODXVH mGRHV QRW QHFHVVDULO\