Brock v. Cincinnati
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
/211,( %52&.HWDO ; 3ODLQWLIIV$SSHOOHHV &URVV$SSHOODQWV 1RV Y ! &,7< 2) &,1&,11$7, s2+1 6+,5(<&LW\0DQDJHU 'HIHQGDQWV$SSHOODQWV &URVV$SSHOOHHV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL 1R n+HUPDQs:HEHU'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG sDQXDU\ %HIRUH %2**668+5+(,15,&+DQG*,%621&LUFXLW sXGJHV
7KH +RQRUDEOH sRKQ 5 *LEVRQ 6HQLRU 8QLWHG 6WDWHV &LUFXLW sXGJH IRU WKH (LJKWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ
%URFNHWDOY&LW\ 1RV RI&LQFLQQDWLHWDO
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 5RVKDQL+DUGLQ&,7<62/,&,725j62)),&( )25 7+( &,7< 2) &,1&,11$7, &LQFLQQDWL 2KLR IRU $SSHOODQWV 6WHSKHQ 6 /D]DUXV +$5',1 /()721 /$=$586 0$5.6 &LQFLQQDWL 2KLR IRU $SSHOOHHV 21%5,() sRKQ:LOOLDPV&,7<62/,&,725j62)),&( )25 7+( &,7< 2) &,1&,11$7, &LQFLQQDWL 2KLR IRU $SSHOODQWV 6WHSKHQ 6 /D]DUXV +$5',1 /()721 /$=$586 0$5.6&LQFLQQDWL2KLRIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %2**6 &LUFXLW sXGJH 7KLV FDVH LQYROYHV D FODLP E\ WZHOYH FDQLQHKDQGOLQJ &LQFLQQDWL SROLFHPHQ IRU EDFN SD\ DQGGDPDJHVVWHPPLQJIURPWKH&LW\jVDOOHJHGIDLOXUHWRSD\ WKHRIILFHUVDGHTXDWHFRPSHQVDWLRQDWWKHRYHUWLPHUDWHIRU FDQLQHFDUH ZRUN SHUIRUPHG DW KRPH ZKLOH RII GXW\ LQ YLRODWLRQ RI WKH )DLU /DERU 6WDQGDUGV $FW )/6$ 7KH GLVWULFW FRXUW GHWHUPLQHG ZKDW ZRXOG KDYH EHHQ LQ LWV HVWLPDWLRQDUHDVRQDEOHWLPHIRUWKHRIILFHUVWRVSHQGFDULQJ IRUWKHLUFDQLQHVWKHQFRQFOXGHGWKDWWKHSDUWLHVjDJUHHPHQW WR SD\ WKH RIILFHUV VWUDLJKWWLPH FRPSHQVDWLRQ IRU DSSUR[LPDWHO\PLQXWHVSHUGD\VHYHQGD\VDZHHNZDV XQUHDVRQDEOH :H FRQFOXGH WKDW WKH GLVWULFW FRXUW GLG QRW SURSHUO\DQDO\]HKRZPXFKRIWKHRIILFHUjVHIIRUWVDPRXQWHG WR )/6$ mZRUNl DQG GLG QRW FRQVLGHU DOO RI WKH IDFWV DQG FLUFXPVWDQFHV RIWKHSDUWLHVjUHODWLRQVKLSLQHYDOXDWLQJWKH IDLUQHVVRIWKHDJUHHPHQW%HFDXVHZHFRQFOXGHDVDPDWWHU RIODZWKDWWKHSDUWLHVUHDFKHGDUHDVRQDEOHDJUHHPHQWDQG WKDW WKH )/6$ SHUPLWV UHDVRQDEOH DJUHHPHQWV IL[LQJ WKH DPRXQWRIFRPSHQVDWLRQLQVLWXDWLRQVOLNHWKLVRQHZHUHYHUVH WKHGLVWULFWFRXUWjVMXGJPHQWDVWRQLQHRIWKHWHQSUHYDLOLQJ SODLQWLIIV DQG UHPDQG IRU IXUWKHU SURFHHGLQJV RQ WKH WHQWK SUHYDLOLQJSODLQWLIIjVFODLP %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO
PDWWHURIODZ7KHUHIRUHZHUHPDQGIRUIXUWKHUSURFHHGLQJV ,)$&76$1'352&('85$/+,6725< RQ2IILFHU0HUFDGRjVFODLPLQDFFRUGDQFHZLWKWKHSULQFLSOHV HOXFLGDWHG LQ WKLV RSLQLRQ %HFDXVH WKH DQDO\VLV VHW IRUWK 3ODLQWLIIV DUH WZHOYH PHPEHUV RI WKH &LQFLQQDWL 3ROLFH KHUHLQFODULILHVWKHODZRQPXFKRI2IILFHU0HUFDGRjVFODLP 'LYLVLRQ ZKR KDQGOH FDQLQHV (OHYHQ ZRUN LQ WKH &DQLQH EXWH[SUHVVHVQRRSLQLRQRQZKHWKHUKHDQGWKH&LW\UHDFKHG 8QLW WKH WZHOIWK 2IILFHU sRKQ 0HUFDGR LV DVVLJQHG WR D DQ DJUHHPHQW ZH DOVR UHPDQG WKH LVVXHV RI OLTXLGDWHG UHJLRQDO GUXJFRQWURO XQLW (VWDEOLVKHG LQ WKH GDPDJHV DQG ZLOOIXOQHVV VKRXOG WKH GLVWULFW FRXUW GHVLUH WR &LQFLQQDWL &DQLQH 8QLW KDV DOZD\V EHHQ D YROXQWHHU UHFRQVLGHUWKHP6HH)HDWVHQW)GDW DVVLJQPHQW ZLWK DSSOLFDQWV VHOHFWHG RQ WKH EDVLV RI WKHLU SHUIRUPDQFHUHFRUGDQGDQDWKRPHLQWHUYLHZZKLFKW\SLFDOO\ :H5(9(56(WKHGLVWULFWFRXUWjVMXGJPHQWIRUQLQHRIWKH LQFOXGHV WKH HQWLUH IDPLO\ DQG QHLJKERUV &DQGLGDWHV IRU WHQSUHYDLOLQJSODLQWLIIVDQGGLUHFWHQWU\RIMXGJPHQWLQIDYRU FDQLQHKDQGOHUDVVLJQPHQWVXQGHUJRH[WHQVLYHWUDLQLQJ7KH\ RIWKH&LW\RI&LQFLQQDWLDJDLQVWDOOSODLQWLIIPHPEHUVRIWKH DUHUHVSRQVLEOHIRUWKHFDUHDQGPDLQWHQDQFHRIWKHGRJZKLOH 3ROLFH'LYLVLRQjV&DQLQH8QLW:H$)),50WKHMXGJPHQW RIIGXW\DOWKRXJKWKH3ROLFH'LYLVLRQHQFRXUDJHVRIILFHUVWR ZLWKUHVSHFWWR2IILFHUV)URPKROGDQG0DNLQ:H9$&$7( SHUIRUPPDQ\RIWKHLUFDQLQHFDUHWDVNVGXULQJWKHHLJKWKRXU WKH MXGJPHQW LQ IDYRU RI 2IILFHU 0HUFDGR EHFDXVH LW ZRUNGD\&DQLQHKDQGOHUVjUHVSRQVLELOLWLHVLQFOXGHFDULQJIRU DSSDUHQWO\ UHOLHV LQ SDUW RQ WKH GLVWULFW FRXUWjV HUURQHRXV IHHGLQJ FOHDQLQJ JURRPLQJ H[HUFLVLQJ WUDLQLQJ DQG mXQUHDVRQDEOHDJUHHPHQWlKROGLQJDQG5(0$1'IRUIXUWKHU WUDQVSRUWLQJWKHLUGRJVRQERWKUHJXODUZRUNGD\VDQGGD\V SURFHHGLQJVRQKLVFODLP:HOLNHZLVH9$&$7(WKHGLVWULFW RII FRXUWjV DZDUG RI DWWRUQH\j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jVKRPHDQG WKDW DQ\JLYHQDFWLYLW\QRWH[FHHGILYHWRWHQPLQXWHVWKHGRJVj DWWHQWLRQVSDQ $SDUWIURPWKHVHVXJJHVWHGOLPLWDWLRQVFDQLQHKDQGOHUVDQG WKHLUIDPLOLHVHQMR\DKLJKO\WUDLQHGIDPLO\SHWODUJHO\DW&LW\ H[SHQVH)RU\HDUVEHIRUHWKH6XSUHPH&RXUWKHOGWKH)/6$ DSSOLFDEOH WR VWDWH DQG ORFDO JRYHUQPHQWV VHH JHQHUDOO\ *DUFLD Y 6DQ $QWRQLR 0HWUR 7UDQV $XWK 86 &LQFLQQDWLSURYLGHG&DQLQH8QLWPHPEHUVDYDULHW\ RIEHQHILWVQRWJLYHQWRRWKHURIILFHUV7ZRRUGLQDU\ZRUNLQJ GD\VSHUGD\F\FOHDUHGHYRWHGWRWUDLQLQJDQGRIILFHUVJHW %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO
Free access — add to your briefcase to read the full text and ask questions with AI
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
/211,( %52&.HWDO ; 3ODLQWLIIV$SSHOOHHV &URVV$SSHOODQWV 1RV Y ! &,7< 2) &,1&,11$7, s2+1 6+,5(<&LW\0DQDJHU 'HIHQGDQWV$SSHOODQWV &URVV$SSHOOHHV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL 1R n+HUPDQs:HEHU'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG sDQXDU\ %HIRUH %2**668+5+(,15,&+DQG*,%621&LUFXLW sXGJHV
7KH +RQRUDEOH sRKQ 5 *LEVRQ 6HQLRU 8QLWHG 6WDWHV &LUFXLW sXGJH IRU WKH (LJKWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ
%URFNHWDOY&LW\ 1RV RI&LQFLQQDWLHWDO
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 5RVKDQL+DUGLQ&,7<62/,&,725j62)),&( )25 7+( &,7< 2) &,1&,11$7, &LQFLQQDWL 2KLR IRU $SSHOODQWV 6WHSKHQ 6 /D]DUXV +$5',1 /()721 /$=$586 0$5.6 &LQFLQQDWL 2KLR IRU $SSHOOHHV 21%5,() sRKQ:LOOLDPV&,7<62/,&,725j62)),&( )25 7+( &,7< 2) &,1&,11$7, &LQFLQQDWL 2KLR IRU $SSHOODQWV 6WHSKHQ 6 /D]DUXV +$5',1 /()721 /$=$586 0$5.6&LQFLQQDWL2KLRIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %2**6 &LUFXLW sXGJH 7KLV FDVH LQYROYHV D FODLP E\ WZHOYH FDQLQHKDQGOLQJ &LQFLQQDWL SROLFHPHQ IRU EDFN SD\ DQGGDPDJHVVWHPPLQJIURPWKH&LW\jVDOOHJHGIDLOXUHWRSD\ WKHRIILFHUVDGHTXDWHFRPSHQVDWLRQDWWKHRYHUWLPHUDWHIRU FDQLQHFDUH ZRUN SHUIRUPHG DW KRPH ZKLOH RII GXW\ LQ YLRODWLRQ RI WKH )DLU /DERU 6WDQGDUGV $FW )/6$ 7KH GLVWULFW FRXUW GHWHUPLQHG ZKDW ZRXOG KDYH EHHQ LQ LWV HVWLPDWLRQDUHDVRQDEOHWLPHIRUWKHRIILFHUVWRVSHQGFDULQJ IRUWKHLUFDQLQHVWKHQFRQFOXGHGWKDWWKHSDUWLHVjDJUHHPHQW WR SD\ WKH RIILFHUV VWUDLJKWWLPH FRPSHQVDWLRQ IRU DSSUR[LPDWHO\PLQXWHVSHUGD\VHYHQGD\VDZHHNZDV XQUHDVRQDEOH :H FRQFOXGH WKDW WKH GLVWULFW FRXUW GLG QRW SURSHUO\DQDO\]HKRZPXFKRIWKHRIILFHUjVHIIRUWVDPRXQWHG WR )/6$ mZRUNl DQG GLG QRW FRQVLGHU DOO RI WKH IDFWV DQG FLUFXPVWDQFHV RIWKHSDUWLHVjUHODWLRQVKLSLQHYDOXDWLQJWKH IDLUQHVVRIWKHDJUHHPHQW%HFDXVHZHFRQFOXGHDVDPDWWHU RIODZWKDWWKHSDUWLHVUHDFKHGDUHDVRQDEOHDJUHHPHQWDQG WKDW WKH )/6$ SHUPLWV UHDVRQDEOH DJUHHPHQWV IL[LQJ WKH DPRXQWRIFRPSHQVDWLRQLQVLWXDWLRQVOLNHWKLVRQHZHUHYHUVH WKHGLVWULFWFRXUWjVMXGJPHQWDVWRQLQHRIWKHWHQSUHYDLOLQJ SODLQWLIIV DQG UHPDQG IRU IXUWKHU SURFHHGLQJV RQ WKH WHQWK SUHYDLOLQJSODLQWLIIjVFODLP %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO
PDWWHURIODZ7KHUHIRUHZHUHPDQGIRUIXUWKHUSURFHHGLQJV ,)$&76$1'352&('85$/+,6725< RQ2IILFHU0HUFDGRjVFODLPLQDFFRUGDQFHZLWKWKHSULQFLSOHV HOXFLGDWHG LQ WKLV RSLQLRQ %HFDXVH WKH DQDO\VLV VHW IRUWK 3ODLQWLIIV DUH WZHOYH PHPEHUV RI WKH &LQFLQQDWL 3ROLFH KHUHLQFODULILHVWKHODZRQPXFKRI2IILFHU0HUFDGRjVFODLP 'LYLVLRQ ZKR KDQGOH FDQLQHV (OHYHQ ZRUN LQ WKH &DQLQH EXWH[SUHVVHVQRRSLQLRQRQZKHWKHUKHDQGWKH&LW\UHDFKHG 8QLW WKH WZHOIWK 2IILFHU sRKQ 0HUFDGR LV DVVLJQHG WR D DQ DJUHHPHQW ZH DOVR UHPDQG WKH LVVXHV RI OLTXLGDWHG UHJLRQDO GUXJFRQWURO XQLW (VWDEOLVKHG LQ WKH GDPDJHV DQG ZLOOIXOQHVV VKRXOG WKH GLVWULFW FRXUW GHVLUH WR &LQFLQQDWL &DQLQH 8QLW KDV DOZD\V EHHQ D YROXQWHHU UHFRQVLGHUWKHP6HH)HDWVHQW)GDW DVVLJQPHQW ZLWK DSSOLFDQWV VHOHFWHG RQ WKH EDVLV RI WKHLU SHUIRUPDQFHUHFRUGDQGDQDWKRPHLQWHUYLHZZKLFKW\SLFDOO\ :H5(9(56(WKHGLVWULFWFRXUWjVMXGJPHQWIRUQLQHRIWKH LQFOXGHV WKH HQWLUH IDPLO\ DQG QHLJKERUV &DQGLGDWHV IRU WHQSUHYDLOLQJSODLQWLIIVDQGGLUHFWHQWU\RIMXGJPHQWLQIDYRU FDQLQHKDQGOHUDVVLJQPHQWVXQGHUJRH[WHQVLYHWUDLQLQJ7KH\ RIWKH&LW\RI&LQFLQQDWLDJDLQVWDOOSODLQWLIIPHPEHUVRIWKH DUHUHVSRQVLEOHIRUWKHFDUHDQGPDLQWHQDQFHRIWKHGRJZKLOH 3ROLFH'LYLVLRQjV&DQLQH8QLW:H$)),50WKHMXGJPHQW RIIGXW\DOWKRXJKWKH3ROLFH'LYLVLRQHQFRXUDJHVRIILFHUVWR ZLWKUHVSHFWWR2IILFHUV)URPKROGDQG0DNLQ:H9$&$7( SHUIRUPPDQ\RIWKHLUFDQLQHFDUHWDVNVGXULQJWKHHLJKWKRXU WKH MXGJPHQW LQ IDYRU RI 2IILFHU 0HUFDGR EHFDXVH LW ZRUNGD\&DQLQHKDQGOHUVjUHVSRQVLELOLWLHVLQFOXGHFDULQJIRU DSSDUHQWO\ UHOLHV LQ SDUW RQ WKH GLVWULFW FRXUWjV HUURQHRXV IHHGLQJ FOHDQLQJ JURRPLQJ H[HUFLVLQJ WUDLQLQJ DQG mXQUHDVRQDEOHDJUHHPHQWlKROGLQJDQG5(0$1'IRUIXUWKHU WUDQVSRUWLQJWKHLUGRJVRQERWKUHJXODUZRUNGD\VDQGGD\V SURFHHGLQJVRQKLVFODLP:HOLNHZLVH9$&$7(WKHGLVWULFW RII FRXUWjV DZDUG RI DWWRUQH\j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jVKRPHDQG WKDW DQ\JLYHQDFWLYLW\QRWH[FHHGILYHWRWHQPLQXWHVWKHGRJVj DWWHQWLRQVSDQ $SDUWIURPWKHVHVXJJHVWHGOLPLWDWLRQVFDQLQHKDQGOHUVDQG WKHLUIDPLOLHVHQMR\DKLJKO\WUDLQHGIDPLO\SHWODUJHO\DW&LW\ H[SHQVH)RU\HDUVEHIRUHWKH6XSUHPH&RXUWKHOGWKH)/6$ DSSOLFDEOH WR VWDWH DQG ORFDO JRYHUQPHQWV VHH JHQHUDOO\ *DUFLD Y 6DQ $QWRQLR 0HWUR 7UDQV $XWK 86 &LQFLQQDWLSURYLGHG&DQLQH8QLWPHPEHUVDYDULHW\ RIEHQHILWVQRWJLYHQWRRWKHURIILFHUV7ZRRUGLQDU\ZRUNLQJ GD\VSHUGD\F\FOHDUHGHYRWHGWRWUDLQLQJDQGRIILFHUVJHW %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO
RQHHLJKWKRXUmGRJGD\lSHUGD\SHULRGZKLFKLVDGD\jV DGD\ZRUNSHULRGQRWKLQJLQWKHUHFRUGLQGLFDWHVWKDWWKH ZRUWKRIFRPSHQVDWRU\WLPHWRFRYHUWKHRIIGXW\RWKHUZLVH &LW\DGRSWHGDZRUNSHULRGWKDWZRXOGWDNHLWRXWVLGHRIWKH XQFRPSHQVDWHG WLPH VSHQW FDULQJ IRU WKH GRJ $ FDQLQH UXOHRI N ZKLFKFRYHUVDQ\ZRUNSHULRGRIEHWZHHQ RIILFHUKDVQRRXWRISRFNHWH[SHQVHVDVVRFLDWHGZLWKWKHGRJ DQGGD\VLQFOXVLYH8QGHUWKHUHJXODWLRQVWKHPD[LPXP WKH 3ROLFH 'LYLVLRQ SD\V IRU IRRG DQG YHWHULQDU\ FDUH DQG QXPEHU RI KRXUV DQ HPSOR\HU FDQ FRPSHQVDWH ODZ EXLOGVDSURIHVVLRQDOVW\OHNHQQHODWWKHRIILFHUj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n GXW\WRVKRZWKHLUGRJVDQGPHHWZLWKKDQGOHUVIURPDURXQG QRRQHKDVVXJJHVWHGWKDWWKH&LW\DGRSWHGDSHULRGRWKHUWKDQ WKHFRXQWU\ WKHVHn LV PHDQLQJOHVV EHFDXVH WKH RIILFHUV DQG WKH &LW\ DJUHHGWKDWWKH\ZRXOGUHFHLYHKRXUVRIVWUDLJKWWLPHSD\ $V HDUO\ DV WKH KDQGOHUV GLVFXVVHG WKH SRVVLEOH SHUZHHNDQGXQGHUZKLFKHYHUZRUNSHULRGLVDSSURSULDWH DSSOLFDWLRQRIWKH)/6$WRWKHLUFRPSHQVDWLRQSDFNDJH,Q WKHUHJXODWLRQVLPSOHPHQWLQJWKH)/6$SHUPLWSD\LQJVWUDLJKW ODWH RU HDUO\ WKH &LW\jV WUDLQLQJ RIILFHU WKHQ WLPHIRUKRXUVDQGPRUH%HFDXVHWKHSDUWLHVjUHDVRQDEOH 6HUJHDQWQRZ&DSWDLQ0LFKDHO&RWWRQEURXJKWXSWKHVXEMHFW DJUHHPHQW GRHV QRW YLRODWH WKH RIILFHUVj ULJKWV E\ SD\LQJ RI WKH &DQLQH 8QLW PHPEHUVj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jVGHWHUPLQDWLRQWKDW KDQGOHUVOHVV&RWWRQDSSDUHQWO\GURSSHGWKHPDWWHUIRUVRPH WKH&LW\GLGQRWZLOOIXOO\YLRODWHWKHLU)/6$ULJKWVDQGWKH WLPH &LW\DSSHDOHGWKHGLVWULFWFRXUWjVGHWHUPLQDWLRQWKDWOLTXLGDWHG GDPDJHVZHUHDSSURSULDWH%HFDXVHZHKROGWKDWWKH&LW\GLG (IIHFWLYH WKH FRPSHQVDWLRQ WKDW &DQLQH 8QLW QRW YLRODWH WKH )/6$ ZLWK UHVSHFW WR WKH &DQLQH 8QLW PHPEHUVUHFHLYHGIRUWKHFDUHDQGPDLQWHQDQFHRIWKHLUGRJV PHPEHUVZHQHHGQRWDGGUHVVWKHVHDUJXPHQWV 7KHUHFRUGKDVQRWKRZHYHUSHUPLWWHGWKLVFRXUWWRUHVROYH 2IILFHU0HUFDGRjVFODLP7KHGLVWULFWFRXUWGLGQRWPDNHD &LQFLQQDWL SRLQWV RXW WKDW KDYLQJ WKHLU RZQ SROLFH FUXLVHU PHDQV WKH ILQGLQJRQWKHTXHVWLRQRIZKHWKHU2IILFHU0HUFDGRDQGWKH RIILFHUV KDYH QR FRVW DVVRFLDWHG ZLWK FRPPXWLQJ WR ZRUN QR ZHDU DQG &LW\ UHDFKHG DQ DJUHHPHQW UHDVRQDEOH RU RWKHUZLVH WR WHDU RQ WKHLU SHUVRQDO YHKLFOHV DQG GHFUHDVHG LQVXUDQFH UDWHV +RZHYHU VRPH KDQGOHUV ZHUH QRW VDQJXLQH DERXW NHHSLQJ D PDUNHG SROLFH FUXLVHU FRPSHQVDWHKLPIRUmZRUNlKHSHUIRUPHGLQFDULQJIRUKLV LQ IURQW RI WKHLU KRPH $GGLWLRQDOO\ WKH GRJjV IUHTXHQW SUHVHQFH LQ WKH FDQLQH ZKLOH RII GXW\ DQG WKH UHFRUG FRQWDLQV LQVXIILFLHQW FUXLVHU PHDQV WKDW RIILFHUV JHQHUDOO\ WDNH H[WUDRUGLQDU\ PHDVXUHV WR NHHS HYLGHQFH WR SHUPLW WKLV FRXUW WR PDNH VXFK D ILQGLQJ DV D WKH YHKLFOH FOHDQ %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO
FRQWHQWLRQ WKDW HPSOR\HUV PXVW VSHFLILFDOO\ PHQWLRQ WKDW GXULQJRIIGXW\KRXUVEHFDPHDSURYLVLRQLQWKH&ROOHFWLYH SURYLVLRQLQWKHLUHPSOR\PHQWSROLFLHVLQRUGHUWRWDNHVKHOWHU %DUJDLQLQJ $JUHHPHQW &%$ EHWZHHQ WKH &LW\ DQG WKH LQWKHUXOHjVVDIHKDUERU )UDWHUQDO 2UGHU RI 3ROLFH )23 'XULQJ QHJRWLDWLRQV WKH &LW\ SURSRVHG WKDW WKH QHZ &%$ LQFOXGH SURYLVLRQV m$VXVHGLQ N WKHWHUPµZRUNSHULRGjUHIHUVWRDQ\ PHPRULDOL]LQJWKHVSHFLDOFDQLQHFRPSHQVDWLRQ DQGVLPLODU HVWDEOLVKHG DQG UHJXODUO\ UHFXUULQJ SHULRG RI ZRUN ZKLFK DUUDQJHPHQWV IRU WKH PRWRUF\FOH DQG ILHOG WUDLQLQJ XQLWV XQGHUWKHWHUPVRIWKH$FWDQGOHJLVODWLYHKLVWRU\FDQQRWEH EHFDXVHXQWLOWKHQWKH&LW\KDGQRIRUPDODXWKRUL]DWLRQWR OHVVWKDQVHYHQFRQVHFXWLYHGD\VQRUPRUHWKDQWZHQW\HLJKW SD\WKHDGGLWLRQDODPRXQWV7KH)23GLGQRWEDUJDLQZLWK FRQVHFXWLYHGD\V([FHSWIRUWKLVOLPLWDWLRQWKHZRUNSHULRG WKH 3ROLFH 'LYLVLRQ RYHU WKH mGRJ GD\l FRPSHQVDWLRQ EXW FDQEHRIDQ\OHQJWKDQGLWQHHGQRWFRLQFLGHZLWKWKHGXW\ FKHFNHGZLWKPHPEHUVWRHQVXUHWKDWWKHSURSRVDOFRYHUHGDOO F\FOHRUSD\SHULRGRUZLWKDSDUWLFXODUGD\RIWKHZHHNRU SUHYLRXVO\SDLGEHQHILWV$WWKLVWLPHDWOHDVWVRPHRIWKH KRXURIWKHGD\l &)5 D ,QSHUPLWWLQJWKH SODLQWLIIVNQHZWKDWWKH8QLWj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j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mELZHHNO\DWDVWUDLJKWWLPHUDWHRI DQGIRUELGVWKHPIURPGHDOLQJGLUHFWO\ZLWKHPSOR\HHV6HH IRXU KRXUVFRPSHQVDWRU\WLPHl7KHFRQWUDFWVHHPVWR 2KLR 5HY &RGH % $ 7KH FRQWHPSODWHDZRUNZHHNDVRSSRVHGWRDSD\SHULRGRIVHYHQ SODLQWLIIVUHFRJQL]HWKDWWKH\VKRXOGKDYHUDLVHGDQ\FRQFHUQV GD\V VWUDLJKWWLPHSD\SHUGD\SHULRGHVVHQWLDOO\FRQYHUWLQJWKH HPSOR\HUVPXVWSOHDGDQGFDUU\WKHEXUGHQRISURYLQJDSSO\ mGRJGD\lSUHYLRXVO\DOORZHGHYHU\GD\VWRWKH&%$jV WRSDUWLFXODUHPSOR\HHV6HH&RUQLQJ*ODVV:RUNV86 GD\F\FOH,QDVXEVHTXHQWURXQGRIQHJRWLDWLRQVWKH)23 DW 7KLVFRXUWKDVSUHYLRXVO\KHOGWKDWDGLVWULFWFRXUW VRXJKWDQLQFUHDVHLQRQO\RQHRIVHYHQVSHFLDOSD\FDWHJRULHV KDV GLVFUHWLRQ WR FRQVLGHU DQ DUJXPHQW FRQFHUQLQJ WKH WKDWIRUWKH0RWRUF\FOH8QLW7KHGLVWULFWFRXUWIRXQGWKDW DSSOLFDELOLW\ RI N HYHQ LI WKH DUJXPHQW ZDV QRW m>D@W QR WLPH GXULQJ WKH QHJRWLDWLRQV IRU WKH µ µ ODERU SUHVHQWHG LQ D WLPHO\ IDVKLRQ VHH )HDWVHQW Y &LW\ RI DJUHHPHQWZDVWKHLVVXHRIFDQLQHFRPSHQVDWLRQUDLVHGl H[WHQGLQJ WKH SHUPLVVLEOH ZRUNZHHN IRU ZKLFK ODZ WLPH3ODLQWLIIVDFWXDOO\VSHQGFDULQJIRUWKHLUFDQLQHSDUWQHUVl HQIRUFHPHQW DJHQFLHV FDQ FRPSHQVDWH WKHLU RIILFHUV DW WKH )XUWKHUm>V@LJQLILFDQWTXHVWLRQVUHPDLQHGDVWRZKHWKHU VWUDLJKWWLPH UDWH ,Q DQ\ HYHQW mH[HPSWLRQl LV KDUGO\ D DOOWKHWLPH>3ODLQWLIIV@FODLPWRKDYHH[SHQGHGRQFDQLQHFDUH WDOLVPDQLFWHUPWKDWFDQIRUFHDFRXUWjVKDQGDQGSUHYHQWLW ZDVUHDVRQDEO\QHFHVVDU\WRSURPRWH'HIHQGDQWVjLQWHUHVWVl IURPDSSO\LQJWKHODZDVVHWIRUWKE\&RQJUHVV $IWHUWKHEHQFKWULDOWKHFRXUWLVVXHGILQGLQJVRIIDFWDQG 6HFWLRQ N GRHV QRWn DV WKH H[HPSWLRQV FRQFOXVLRQVRIODZ,QUHYLHZLQJ)/6$FDVHODZWKHGLVWULFW GLVFXVVHGLQ&RUQLQJ*ODVV:RUNVDQGDOORIWKHFDVHVFLWHG FRXUWDSSHDUHGWRUHDFKWKHIROORZLQJFRQFOXVLRQ WKHUHLQGRnWRWDOO\UHPRYHFHUWDLQFDWHJRULHVRIHPSOR\HHV IURP WKH UHFRUGNHHSLQJ DQG RYHUWLPH SURYLVLRQV RI WKH :KDWTXDOLILHVDVFRPSHQVDEOHZRUNXQGHUWKH)/6$LV )/6$ 6HH HJ 86& D H[HPSWLQJ GHWHUPLQHG E\ ZKHWKHU WKH HPSOR\HHj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m) &l DW VSHFLILHGHPSOR\HHVIURPWKH)/6$jVSURWHFWLRQ m1RSXEOLF TXRWLQJ+RO]DSIHOY7RZQRI1HZEXUJK)G DJHQF\VKDOOEHGHHPHGWRKDYHYLRODWHGVXEVHFWLRQ D RIWKLV G &LU 7KH FRXUW SURFHHGHG ZLWK UHVROYLQJ WKH VHFWLRQZLWKUHVSHFWWRHPSOR\PHQWRIDQ\HPSOR\HHLQILUH SDUWLHVjFODLPV SURWHFWLRQ DFWLYLWLHV RU DQ\ HPSOR\HH LQ ODZ HQIRUFHPHQW DFWLYLWLHV LQFOXGLQJ VHFXULW\ SHUVRQQHO LQ FRUUHFWLRQDO 7KHLVVXHEDVLFDOO\ERLOVGRZQWRZKHWKHUWKHXQLODWHUDO LQVWLWXWLRQV LILQDZRUNSHULRGRIFRQVHFXWLYHGD\VWKH GHFLVLRQRIWKH&LW\WRSD\IURPWKHEHJLQQLQJWKHWZR HPSOR\HHUHFHLYHVIRUWRXUVRIGXW\ZKLFKLQWKHDJJUHJDWH KRXUVSHUZHHNRUHLJKWKRXUVSHU>GD\@SHULRGZDVD H[FHHG>KRXUV@FRPSHQVDWLRQDWDUDWHQRWOHVVWKDQRQH UHDVRQDEOHDQDO\VLV,jYHSRLQWHGRXWWKDWWKH&LW\KDG DQGRQHKDOIWLPHVWKHUHJXODUUDWHDWZKLFKKHLVHPSOR\HGl DEVROXWHLQP\RSLQLRQDXWKRULW\WROLPLWWKHDPRXQWRI 86& N &)5 D WLPHDQGWKHDPRXQWRIZRUNWKH\ZDQWHGWKHLUFDQLQH RIILFHUVWRVSHQGRUZRUNZLWKWKHVHGRJV7KH&LW\GLG 7KHSURYLVLRQVRI N VWDQGDV&RQJUHVVjVVWDWHPHQW QRWH[HUFLVHWKDWULJKW,WLVXQFRQWURYHUWHGWKDWWKH RI WKH PD[LPXP ZRUNZHHN IRU ODZ HQIRUFHPHQW RIILFHUV HIIRUWV>WKHRIILFHUV@SXWIRUWKWRDQGIRUDQGRQEHKDOIRI 7KHSURYLVLRQjVDSSOLFDELOLW\WRDJLYHQFDVHLVDPDWWHURIODZ WKHGRJVLVQHFHVVDU\DQGLVDQDSSURSULDWHSDUWRIWKHLU GLFWDWHGE\ D LWVHOIVHH 86& D VWDWLQJ ZRUNDQGLVFRPSHQVDEOH7KLVEULQJVXVWRWKHFUX[RI m>H@[FHSWDVRWKHUZLVHSURYLGHGLQWKLVVHFWLRQl UDWKHU WKHFDVH:KDWLVDUHDVRQDEOHn,JXHVVPD\EHWRSXWLW WKDQDQmH[HPSWLRQl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mWRXUVRIGXW\ZKLFKLQWKHDJJUHJDWHH[FHHGlKRXUVLQD 7KHFRXUWWKHQGHWHUPLQHGWKDWDQ\LQIRUPDWLRQWUDQVPLWWHG GD\ZRUNSHULRGRUKRXUVLQDGD\SHULRGZKLFK WRWKH&LW\DERXWWKHWLPHH[SHQGHGE\WKHKDQGOHUVZRXOG EUHDNGRZQWRPD[LPXPZRUNZHHNVRIDQGKRXUV KDYH FRPH WKURXJK &DSWDLQ &RWWRQ ZKR IRU PDQ\ \HDUV UHVSHFWLYHO\ 86& N &)5 D FRPPDQGHGWKH&DQLQH8QLWVFUHHQHGDSSOLFDQWVDQGWUDLQHG 7KH GLVWULFW FRXUW GLUHFWHG WKDW WKH MXGJPHQW LWVPHPEHUVERWKKXPDQ DQGFDQLQHm&DSWDLQ&RWWRQKDV FRQVLGHUDVVWUDLJKWWLPHWKHWZRKRXUVSHUZHHNSDLGXQGHU WHVWLILHGDQGWKH>GLVWULFW@&RXUWDFFHSW>HG@WKDWRQHKRXUDGD\ WKH GRJ GD\ SURYLVLRQ ZKLFK WKH RIILFHUV KDYH DOZD\V LQDGGLWLRQWRWKHn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l) &DW7KHFRXUWIRXQGWKDWm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nE\WKHLUHPSOR\HUl) &DW PRWLRQ IRUVXPPDU\MXGJPHQWRULWVSURSRVHGILQGLQJVRI IDFW 7KHGLVWULFWFRXUWGHFOLQHGWRILQGWKH&LW\jVIDLOXUHWRSD\ )/6$ RYHUWLPH ZLOOIXO EXW GLG GHHP OLTXLGDWHG GDPDJHV 7KH 6XSUHPH &RXUW VWDWHG m>7@KH DSSOLFDWLRQ RI DQ DSSURSULDWH :KHQ WKH SDUWLHV FDOFXODWHG WKH DPRXQW RI H[HPSWLRQXQGHUWKH)DLU/DERU6WDQGDUGV$FWLVDPDWWHURI GDPDJHV WKH FRXUW LQVWUXFWHG WKDW WKH H[FHSWLRQ IRU ODZ DIILUPDWLYHGHIHQVHRQZKLFKWKHHPSOR\HUKDVWKHEXUGHQRI HQIRUFHPHQWRIILFHUVFRQWDLQHGLQ 86& N DSSOLHG SURRIl&RUQLQJ*ODVV:RUNVY%UHQQDQ86 WR WKLV FDVH 7KH FRXUWjV KROGLQJ WKDW ZKLOH WKH\ ZHUH DW FLWLQJ6XSUHPH&RXUWFDVHV 7KH&LW\jVZLWQHVV KRPH DQG RIIGXW\ WKH RIILFHUV ZRUNHG RQH KRXU RI DQG WKH RIILFHUVj EULHI GHVFULEHG N DV FUHDWLQJ DQ FRPSHQVDEOHWLPHRQZRUNGD\VDQGRQHDQGDKDOIKRXUVRQ H[HPSWLRQIRUODZHQIRUFHPHQWDJHQFLHV7REHSUHFLVH QRQZRUNGD\VPHDQWWKDWWKH\GHVHUYHGFRPSHQVDWLRQ IRU N FUHDWHV DW EHVW D SDUWLDO mH[HPSWLRQl E\ VOLJKWO\ %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO ,97+($33/,&$%,/,7<2) N HLJKWKRXUVSHUZHHNEH\RQGWKHVWDQGDUGKRXUZHHNRI RUGLQDU\RQGXW\WLPH6LQFHWKH&LW\KDGDOUHDG\SDLGWKH ,QGHSHQGHQW RI WKH RIIGXW\ GRJFDUH LVVXH WKH RIILFHUV &DQLQH8QLWRIILFHUVWZRKRXUVSHUZHHNXQGHUWKHmGRJGD\l FODLPWKDWWKH&LW\YLRODWHGWKH)/6$E\SD\LQJWKHPVWUDLJKW SURYLVLRQ&LQFLQQDWLRZHGWKHPFRPSHQVDWLRQIRUVL[KRXUV WLPHIRUWKHGRJGD\jVWZRKRXUVSHUZHHNLQH[FHVVRID SHUZHHN%HFDXVHWKH N H[FHSWLRQ DOORZLQJXSWR KRXUZRUNZHHN,QWKHLUFURVVDSSHDOWKHRIILFHUVDUJXHWKDW KRXUV LQ HYHU\ GD\ SD\ SHULRG DSSOLHG WKH )/6$ WKH GLVWULFW FRXUW HUUHG LQ KROGLQJ WKDW 86& N SHUPLWWHGWKH&LW\WRSD\WKHRIILFHUVDWWKHLUVWUDLJKWWLPHUDWH SHUPLWVWKH&LW\WRSD\SROLFHRIILFHUVXSWRKRXUVSHU IRUXSWRKRXUVSHUZHHN7RFRPSHQVDWHWKHPIRUWKH ZHHNDWWKHVWUDLJKWWLPHUDWH IXOOKRXUVZRUNHGHDFKZHHNWKH&LW\RZHGWKHRIILFHUV KRXUVRIVWUDLJKWWLPHSD\DQGKRXUVDWWLPHDQGD $VWKH6XSUHPH&RXUWREVHUYHGm>D@Q\FXVWRPRUFRQWUDFW KDOI0XOWLSOLHGRXWWKLVUHVXOWHGLQDGHILFLWRIKRXUV IDOOLQJVKRUWRI>FRPSHQVDWLRQIRUDOOZRUNRUHPSOR\PHQW SHUZHHNDWWKHVWUDLJKWWLPHUDWH HQJDJHGLQE\HPSOR\HHV@OLNHDQDJUHHPHQWWRSD\OHVVWKDQ WKH PLQLPXP ZDJH UHTXLUHPHQWV FDQQRW EH XWLOL]HG WR %HFDXVH 2IILFHU 0HUFDGR ZDV DVVLJQHG WR WKH 5HJLRQDO GHSULYHHPSOR\HHVRIWKHLUVWDWXWRU\ULJKWVl0XVFRGD 1DUFRWLFV8QLWLQVWHDGRIWKH&DQLQH8QLWKHGLGQRWKDYHDOO 86 DW $FFRUGLQJO\ LI WKH SDUWLHVj DJUHHPHQW KHUH RIWKHSHUNVRI&DQLQH8QLWPHPEHUVKLSHQMR\HGE\WKHRWKHU YLRODWHG WKH RIILFHUVj HVWDEOLVKHG )/6$ ULJKWV WKH FRXUWV SODLQWLIIV+LV8QLWGLGQRWSHUPLWKLPWRSDUWLFLSDWHLQWKH FDQQRW HQIRUFH LW UHJDUGOHVV RI LWV UHDVRQDEOHQHVV $V WZR RQGXW\ WUDLQLQJ GD\V GXULQJ ZKLFK &DQLQH 8QLW GHVFULEHGDERYHWKHSDUWLHVDJUHHGWKDWWKHRIILFHUVZRXOGEH PHPEHUV ZHQW WKURXJK WUDLQLQJ GULOOV DQG GRJ DQG YHKLFOH SDLG VWUDLJKW WLPH IRU WZR KRXUV SHU ZHHN EH\RQG WKHLU PDLQWHQDQFH,QVWHDG0HUFDGRWUDLQHGKLVFDQLQHRQKLVRZQ VWDQGDUGKRXUVRImRQGXW\lWLPH,QWHUPVRIWKHDQDO\VLV WLPH 7R DFFRXQW IRU WKLV GLIIHUHQFH WKH GLVWULFW FRXUW DERYHWKHSDUWLHVDJUHHGRQKRZPXFKmZRUNlWKHRIILFHUV GHWHUPLQHGWKDW0HUFDGRVKRXOGKDYHDQDGGLWLRQDOIRXUKRXUV SHUIRUPHGZKLFKLQFOXGHVWKHGLIILFXOWFRPSRQHQWTXHVWLRQV SHUZHHNDWWKHRYHUWLPHUDWHUHSUHVHQWLQJDZHHNO\VKDUHRI RI ZKHWKHU WKHLU H[HUWLRQV ZHUH UHTXLUHG RU VXIIHUHG E\ WKH&DQLQH8QLWjVRQGXW\WUDLQLQJGD\V &LQFLQQDWLQHFHVVDULO\DQGSULPDULO\IRUWKH&LW\jVEHQHILW DQGDQLQWHJUDOSDUWRIWKHLUHPSOR\PHQWDVFDQLQHKDQGOHUV $IWHUWKHSDUWLHVFDOFXODWHGWKHDSSURSULDWHFDVKILJXUHVWKH $V WKH 6HYHQWK &LUFXLW KHOG m>(@PSOR\HUV DQG HPSOR\HHV FRXUWLVVXHGMXGJPHQWDFFRUGLQJO\7KH&LW\WLPHO\DSSHDOHG PD\ UHVROYH ZKHWKHU FHUWDLQ DFWLYLW\ LV µZRUNj WKURXJK D DUJXLQJ WKDW WKH WULDO FRXUW VKRXOG KDYH JUDQWHG LWV FROOHFWLYH EDUJDLQLQJ DJUHHPHQW DV ORQJ DV WKH DJUHHPHQW VXPPDU\ MXGJPHQW PRWLRQ EDVHG RQ WKH UHDVRQDEOH FRPSRUWVZLWKWKH)/6$l/HDK\ )GDW7KXVLI DJUHHPHQWVHWWLQJFDQLQHFDUHFRPSHQVDWLRQ WKHWULDOFRXUW SD\LQJ WKH RIILFHUV DW WKH VWUDLJKWWLPH UDWH IRU WKRVH WZR VKRXOGQRWKDYHDZDUGHGOLTXLGDWHGGDPDJHVDQG HTXLW\ KRXUVSHUZHHNYLRODWHGWKH)/6$WKHRIILFHUVFDQUHFRYHU UHTXLUHG WKDW WKH SODLQWLIIV UHFHLYH QR FRPSHQVDWLRQ RYHUWLPHIRUWKDWmZRUNl 3ODLQWLIIVFURVVDSSHDOHGDUJXLQJWKDWWKHWULDOFRXUW VKRXOG KDYH IRXQG &LQFLQQDWLjV )/6$ YLRODWLRQV ZLOOIXO DQG ,Q GLUHFWLQJ WKH SDUWLHV WR FDOFXODWH GDPDJHV WKH GLVWULFW VKRXOG QRW KDYH DOORZHG WKH &LW\ WR GLVSHQVH mGRJ GD\l FRXUWLQVWUXFWHGWKDWWKHILUVWKRXUVSHUZHHNEH\RQGWKH FRPSHQVDWLRQDWWKHVWUDLJKWWLPHUDWHXQGHUWKH 86& VWDQGDUG KRXU ZHHN VKRXOG EH GHHPHG VWUDLJKW WLPH N H[FHSWLRQ DOORZLQJ D ORQJHU ZRUNZHHN IRU ODZ EHFDXVH 86& N FRQWDLQV DQ H[FHSWLRQ IURP HQIRUFHPHQWRIILFHUV D WKDWSHUPLWVODZHQIRUFHPHQWDJHQFLHVWRSD\VWUDLJKW %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO ,,67$1'$5'2)5(9,(: '2IILFHU0HUFDGR &LQFLQQDWLDSSHDOHGIURPWKHGLVWULFWFRXUWjVMXGJPHQWWKDW 2IILFHU 0HUFDGR ZDV QRW D PHPEHU RI WKH &DQLQH 8QLW LWYLRODWHGWKH)/6$mE\QRWSURYLGLQJSURSHUFRPSHQVDWLRQ ,QVWHDG KH ZDV DVVLJQHG WR WKH 5HJLRQDO 1DUFRWLFV 8QLW D WRPHPEHUVRILWVFDQLQHXQLWIRUPDLQWHQDQFHDQGFDUHRIWKH FROODERUDWLYH HIIRUW RI WKH &LQFLQQDWL 3ROLFH 'LYLVLRQ DQG GRJZKLOHRIIGXW\l+RZHYHUWKHKHDGLQJRIWKHDSSHOODQWjV RWKHU DUHD DXWKRULWLHV 'HVSLWH KDQGOLQJ D FDQLQH DQG EULHI VHHPV WR DVVLJQ HUURU LQ WKH WULDO FRXUWjV mGHQ\LQJ LWV UHFHLYLQJVRPHRIWKHSHUNV&DQLQH8QLWPHPEHUVUHFHLYHG PRWLRQIRUVXPPDU\MXGJPHQWRQWKHEDVLVWKDWWKHSODLQWLIIV KHGLGQRWFROOHFWWKHGRJGD\FRPSHQVDWLRQDQGKLV8QLWGLG ZHUH QRW ERXQG E\ D UHDVRQDEOH DJUHHPHQW SXUVXDQW WR QRWSHUPLWKLPWRWDNHDGYDQWDJHRIWKHIXOOGD\RIRQGXW\ &)5 l 'HI %U DW &LQFLQQDWL FLWHV WKH WUDLQLQJSHUGD\F\FOH+LVWHVWLPRQ\DWWULDOLQGLFDWHGWKDW VXPPDU\ MXGJPHQWVWDQGDUGRIUHYLHZEXWDVVHUWVm,QWKLV 0HUFDGRVRXJKWWKHVSHFLDOSD\GLUHFWO\IURPKLVVXSHULRUV PDWWHUWKH&LW\ZDVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZl ZKRVLPSO\UHIXVHGKLVUHTXHVW0HUFDGRZDVDSDUW\WRWKH 7KH EULHI SURFHHGV WR FLWH WHVWLPRQ\ DW WULDO DQG DUJXH WKH &ROOHFWLYH%DUJDLQLQJ$JUHHPHQWWKHVSHFLDOSD\SURYLVLRQ HQWLUHFDVHUDWKHUWKDQSUHVVIRUUHYHUVDORIWKHSUHWULDORUGHU RIZKLFKVSHFLILHGWKDWm0HPEHUV>RIWKH&DQLQH8QLW@PXVW GHQ\LQJVXPPDU\MXGJPHQW7KHKHDGLQJQRWZLWKVWDQGLQJ EH GHVLJQDWHG LQ DGYDQFH E\ WKH 3ROLFH &KLHI RU KLVKHU WKHJUDYDPHQRIWKHDSSHOODQWjVDUJXPHQWDVVLJQVHUURULQWKH GHVLJQHHlEXWWKHUHFRUGGRHVQRWUHYHDOZKHWKHU0HUFDGR ILQDO MXGJPHQW RQ WKH PHULWV DQG ZH WUHDW WKLV DSSHDO DV VRXJKW VXFK GHVLJQDWLRQ $V LW VWDQGV WKH UHFRUG GRHV QRW SUHVHQWLQJ WKDW TXHVWLRQ 6HH 5HGPDQ Y %DOWLPRUH FRQWDLQVXIILFLHQWHYLGHQFHIRUWKLVFRXUWWRGHWHUPLQHZKHWKHU &DUROLQD /LQH ,QF )G G &LU 2IILFHU0HUFDGRDQGWKH&LW\HYHUUHDFKHGDQDJUHHPHQWWR FRQVWUXLQJ DQ DVVLJQPHQW RI HUURU LQ WKH GLVWULFW FRXUWjV FRPSHQVDWHKLPIRUWKH)/6$mZRUNl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jEHKDOI7KH\KDYHIDLOHGWRLQWURGXFHHYLGHQFHWR MXU\ FRXOG ILQG WKDW WKH DJUHHPHQW WKH SDUWLHV UHDFKHG ZDV VDWLVI\WKHLUEXUGHQRIVKRZLQJWKDWmWKHDJUHHPHQWSURYLGHG XQUHDVRQDEOH 6HH 5XGROSK Y 0HWURSROLWDQ $LUSRUWV DQXQUHDVRQDEO\VKRUWDPRXQWRIWLPHWRSHUIRUPWKHDVVLJQHG &RPPjQ)G WK&LU ,QDPRUH WDVNVlWKDWFRQVWLWXWH)/6$ZRUNDQGDQXQUHDVRQDEO\VPDOO UHFHQWFDQLQHKDQGOHUFDVHWKH6HFRQG&LUFXLWFRQVLGHUHGWKH DPRXQWRIQRQPRQHWDU\EHQHILWVWRFRPSHQVDWHWKHPIRUDQ\ VWDQGDUGRIUHYLHZDSSURSULDWHWRWKLVNLQGRI)/6$FDVH6HH WLPH GHILFLHQF\ 7KH RIILFHUVj FRQFOXVRU\ VWDWHPHQW WKDW +RO]DSIHO)GDW GHVFULELQJWKHFLUFXLWVjGLIIHUHQW HOHYHQ PLQXWHV SHU GD\ DW WKH RYHUWLPH UDWH VHYHQWHHQ DSSURDFKHV 7KH +RO]DSIHO FRXUW FRQVLGHUHG WKH LVVXH D PLQXWHVDWWKHVWUDLJKWWLPHUDWH EHDUVQRUDWLRQDOUHODWLRQVKLS PL[HGTXHVWLRQRIODZDQGIDFWDQGLQVWUXFWHGGLVWULFWFRXUWV WR WKH DFWXDO DPRXQW RI WLPH VSHQW GRHV QRWn HYHQ LI RQWKHSURSHUFKDUJHIRUMXULHV,WVWDWHGWKDWWKH DFFXUDWHnHQGWKHLQTXLU\PXFKOHVVUHVROYHLWLQWKHLUIDYRU WULDOMXGJHZDVUHVSRQVLEOHIRUGHWHUPLQLQJDVDPDWWHURI 7KHSODLQWLIIVDUJXHWKDWQRUHDVRQDEOHDJUHHPHQWDVWRDOO ODZ ZKHWKHU SODLQWLIIjV DFWLYLWLHV FRXOG SRWHQWLDOO\ WKH SHUWLQHQW IDFWV H[LVWHG KHUH EHFDXVH WKH SDUWLHV GLG QRW FRQVWLWXWHmZRUNl7KHMXU\ZDVWRGHFLGHDVDTXHVWLRQ GLVFXVVWKH)/6$ZKHQWKH\GHFLGHGWRLQFOXGHWKHmGRJGD\l RIIDFWQRWRQO\KRZPXFKRISODLQWLIIjVWLPHVSHQWZLWK SURYLVLRQLQWKH&%$QRRQHNQHZWKHEDVLVIRUSURYLGLQJWKH %DQGLW >WKH RIILFHUjV FDQLQH@ IHOO ZLWKLQ WKH FRXUWjV GRJGD\DQGWKHRIILFHUVGLGQRWNQRZLQJO\DJUHHWRIRUHJR GHILQLWLRQRImZRUNlDQGZRXOGEHFRPSHQVDEOHEXWDOVR WKHLU )/6$ ULJKWV :KLOH WKH UHFRUG GRHV QRW LQGLFDWH KRZPXFKRIWKDWWLPHZDVVSHQWZLWKWKHHPSOR\HUjV ZKHWKHUWKHSDUWLHVjUHSUHVHQWDWLYHVDFWXDOO\PHQWLRQHGWKH DFWXDORUFRQVWUXFWLYHNQRZOHGJH )/6$ZKHQWKH\DJUHHGWRLQFOXGH6HFWLRQLQWKH&%$WKH GLVWULFWFRXUWIRXQGWKH&%$mUHSOHWHZLWKSURYLVLRQVZKLFK ,GDW UHFRJQL]HWKHIDFWWKDWWKH&LW\DQGWKH)23ZHUHFRJQL]DQW RIWKH$FWDQGWKDWWKH\SURYLGHGIRUWLPHDQGDKDOIl7KH ,QDFDVHFRQFHUQLQJDQHPSOR\HHjVSRVVLEO\EHLQJFRYHUHG SDUWLHVGLGQRWQHHGWRXVHWKHVSHFLILFWHUPm)/6$lLQWKH E\WKH)/6$jVSURWHFWLRQVWKLVFRXUWVWUXFNDVLPLODUEDODQFH &%$$VORQJDVWKHFROOHFWLYHEDUJDLQLQJSURFHVVSURGXFHG m:H UHYLHZ WKH GLVWULFW FRXUWjV ILQGLQJV RI IDFW UHJDUGLQJ DQDJUHHPHQWLQIDFWDQGWKHSDUWLHVZHUHFRJQL]DQWWKDWWKH ZKHWKHUWKHHPSOR\HHVDWLVVXHZHUHVDODULHGHPSOR\HHVXQGHU DJUHHPHQWKDGWRGHDOZLWKWKHHPSOR\HHVj)/6$ULJKWVWKLV WKH)/6$E\DSSO\LQJWKHFOHDUO\HUURQHRXVVWDQGDUG:H FRXUW FDQ SURFHHG WR WKH TXHVWLRQ RI ZKHWKHU WKH SDUWLHV UHYLHZGHQRYRWKHGLVWULFWFRXUWjVXOWLPDWHGHWHUPLQDWLRQRI UHDFKHGDUHDVRQDEOHDJUHHPHQWWKDWDGGUHVVHGWKHLU)/6$ ZKHWKHUWKHHPSOR\HHVDWLVVXHZHUHVDODULHGHPSOR\HHVDQG ULJKWV 7KDW QR RQH DW WKH WLPH NQHZ ZK\ WKH\ VHOHFWHG D WKXV H[HPSW IURP WKH )/6$jV RYHUWLPH FRPSHQVDWLRQ SDUWLFXODUWHUPWRIRUPDOL]HDORQJVWDQGLQJSUDFWLFHRUZK\ SURYLVLRQVl 0DUWLQ Y :( 0RQNV &R )G WKHSUDFWLFHLWVHOIH[LVWHGnGHVSLWHWKHIDFLDOO\REYLRXVLQWHQW WDEOH :/DW 1R WK&LU$XJ WRFRPSHQVDWHRIILFHUVLQDVLWXDWLRQRIDQXQXVXDOZRUNORDG DQGZRUNLQJFRQGLWLRQVnGRHVQRWZLWKRXWPRUHUHQGHUWKH DJUHHPHQW XQUHDVRQDEOH )LQDOO\ WKDW WKH RIILFHUV GLG QRW 7KH)LIWK&LUFXLWKDVHQXQFLDWHGDVLPLODUUXOHQRWLQJWKDW NQRZLQJO\DJUHHWRIRUHJRWKHLU)/6$ULJKWVnWKHSUHFLVH LW FRPSRUWV ZLWK )HG 5 &LY 3 m)LQGLQJV RI IDFW H[WHQWRIZKLFKHYHQWKLVDSSHDOKDVQRWUHVROYHGnZLOOQRW ZKHWKHUEDVHGRQRUDORUGRFXPHQWDU\HYLGHQFHVKDOOQRWEH SHUPLW WKHP WR DYRLG D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW VHW DVLGH XQOHVV FOHDUO\ HUURQHRXVl $V WKH )LIWK &LUFXLW SURSHUO\ UHDFKHG E\ WKHLU DXWKRUL]HG UHSUHVHQWDWLYHV DQG REVHUYHG m>7@KH 6XSUHPH &RXUW VSHFLILFDOO\ FRQVLGHUHG D SURSHUO\DGRSWHGE\WKHLUXQLRQXQGHU2KLRODZ FODLPIRUH[HPSWLRQVIURPWKH)/6$LQ,FLFOH6HDIRRGV,QF %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO Y:RUWKLQJWRQ86 DQGVWDWHGWKDWµWKHIDFWV H[SHQGLWXUHVRIWLPH7KHFRXUWKHOGm,WLVQRWHQRXJKIRU QHFHVVDU\ WR D SURSHU GHWHUPLQDWLRQ RI WKH OHJDO TXHVWLRQ SODLQWLIIVWRVKRZWKDWWKH\ZRUNHGPRUHWKDQDJUHHG7KH\ ZKHWKHUDQH[HPSWLRQWRWKH)/6$DSSOLHVLQDSDUWLFXODUFDVH PXVWVKRZWKDWWKHDJUHHPHQWSURYLGHGDQXQUHDVRQDEO\VKRUW VKRXOGEHUHYLHZHGE\WKHFRXUWRIDSSHDOVSXUVXDQWWR5XOH DPRXQWRIWLPHWRSHUIRUPWKHDVVLJQHGWDVNVlWKDWFRQVWLWXWH D OLNH WKH IDFWV LQ RWKHU FLYLO EHQFKWULHG OLWLJDWLRQ LQ )/6$ZRUN,ELG7KHSODLQWLIIVWKHUHIDLOHGWRGRVREHFDXVH IHGHUDOFRXUWVj:RUWKLQJWRQ6&WDW l%URFN WKH\SUHVHQWHGmQRHYLGHQFHWKDWDUHDVRQDEOHHPSOR\HUZRXOG )G DW HPSKDVLV DGGHG $FFRUGLQJO\ ZH ZLOO QHFHVVDULO\KDYHNQRZQWKDWKDOIDQKRXUSHUGD\ZDVWRR UHYLHZWKHGLVWULFWFRXUWjVXQGHUO\LQJILQGLQJVRIIDFWIRUFOHDU VKRUW D WLPH WR SHUIRUP WKH WDVNV >WKH HPSOR\HU@ WROG WKH HUURU EXW UHYLHZ GH QRYR WKH GLVWULFW FRXUWjV DSSOLFDWLRQ WR RIILFHUVWRSHUIRUPl,ELG WKRVH IDFWV RI WKH OHJDO VWDQGDUGV FRQWDLQHG LQ VWDWXWHV UHJXODWLRQVDQGFDVHODZ 2XUUHYLHZRIWKHIDFWVDQGFLUFXPVWDQFHVUHYHDOHGLQWKH UHFRUG OHDYHV XV FRQYLQFHG WKDW WKH SDUWLHV UHDFKHG D ,,,7+(29(57,0(&/$,0$1'7+(3$57,(6j UHDVRQDEOH DJUHHPHQW 1RWKLQJ GLVFORVHG LQ WKH UHFRUG $*5((0(17 LQGLFDWHVWKDW&LQFLQQDWLPXVWKDYHNQRZQWKDWPLQXWHV SHU GD\ RI FRPSHQVDWRU\ WLPH IDU XQGHUDSSUR[LPDWHG WKH :HDQDO\]HWKHSODLQWLIIVjFODLPVLQWKUHHVWDJHV +RZ DFWXDODPRXQWRI)/6$mZRUNlSHUIRUPHGE\WKHSODLQWLIIV PXFKRIWKHWLPHVSHQWE\KDQGOHUVLQFDULQJIRUWKHLUFDQLQH 0RUHRYHUQRWKLQJLQGLFDWHVWKDWWKHQRQPRQHWDU\VXSSRUW FKDUJHV ZKLOH RIIGXW\ LV FRPSHQVDEOH mZRUNl XQGHU WKH WKDWWKH&LW\SURYLGHGWRSODLQWLIIVLQWKHIRUPRIDWDNHKRPH )/6$" ,VWKDWDPRXQWRIWLPHGHPLQLPLVVRWKDWWKH)/6$ FUXLVHUWD[SD\HUSURYLGHGGRJIRRGYHWHULQDU\FDUHDNHQQHO GRHVQRWPDQGDWHFRPSHQVDWLRQ" +DYHWKHSDUWLHVUHDFKHG WUDYHO WR FRPSHWLWLRQV DQG RQGXW\ WUDLQLQJ GD\V IDLOHG WR DUHDVRQDEOHDJUHHPHQWWRFRPSHQVDWHWKHKDQGOHUVIRUQRQGH FRPSHQVDWHWKHPUHDVRQDEO\IRUDQ\GHILFLHQF\WKHVHYHQWHHQ PLQLPLVWLPHVSHQWLQmZRUNlXQGHUWKH)/6$" PLQXWHVRIVWUDLJKWWLPHSD\HPERGLHGLQWKH&%$jVGRJGD\ PD\ KDYH OHIW 7KH DFWXDO DPRXQW RI WLPH VSHQW LQ )/6$ $m:RUNl mZRUNlLIUHOLDEO\DVFHUWDLQHGLVDUHIHUHQFHSRLQWIRUDUDQJH RIUHDVRQDEOHDJUHHPHQWVDUDQJHWKDWLVZLGHQHGE\DYDULHW\ 3ODLQWLIIVFODLPWKDWWKH&LW\XQGHUFRPSHQVDWHGWKHPLQ RIQRQPRQHWDU\FRVWVDQGEHQHILWV7KH&LW\jVSDFNDJHZDV YLRODWLRQRIWKH)DLU/DERU6WDQGDUGV$FW 86& FRPSUHKHQVLYH WKDWLWLQFOXGHGDUHODWLYHO\VPDOODPRXQWRI HW VHT 6HFWLRQ D GHFODUHV m([FHSW DV RWKHUZLVH SDLG WLPH GRHV QRW E\ LWVHOI UHQGHU WKH DJUHHPHQW SURYLGHGLQWKLVVHFWLRQQRHPSOR\HUVKDOOHPSOR\DQ\RIKLV XQUHDVRQDEOH HPSOR\HHVIRUDZRUNZHHNORQJHUWKDQIRUW\KRXUVXQOHVV VXFKHPSOR\HHUHFHLYHVFRPSHQVDWLRQIRUKLVHPSOR\PHQWLQ 7KHVHRIILFHUVHQWHUHGWKHDOOYROXQWHHU&DQLQH8QLWZLWK H[FHVVRIWKHKRXUVDERYHVSHFLILHGDWDUDWHQRWOHVVWKDQRQH H\HV ZLGH RSHQ DQG WKH &LW\ WZLFH QHJRWLDWHG ZLWK WKHLU DQGRQHKDOIWLPHVWKHUHJXODUUDWHDWZKLFKKHLVHPSOR\HGl H[FOXVLYHEDUJDLQLQJUHSUHVHQWDWLYHZKRILUVWQHJOHFWHGDQG 86& D 7KH6XSUHPH&RXUWLQWHUSUHWHGWKH WKHQRXWULJKWUHIXVHGWRSUHVVWKHFRPSHQVDWLRQLVVXHRQWKH )/6$LQWKHVHPLQDOFDVHRI7HQQHVVHH&RDO,URQ 5DLOURDG 7KH DJUHHPHQW SURYLGHG IRU PLQXWHV RI ZRUN RQ DOO GD\V D WDNH $V GLVFXVVHG EHORZ WKH H[FHSWLRQ FRQWDLQHG LQ N DSSOLHV WR KRPH YHKLFOH DQG QR VSHFLDOLVW FRPSHQVDWLRQ ,W DOVR VSHFLILHG WKDW WKLV FDVH DQG H[WHQGV WKH SHUPLVVLEOH VWUDLJKWWLPH ZRUNZHHN IRU WKH KDQGOHUV KDG WR REWDLQ SULRU DSSURYDO IRU DQ\ DGGLWLRQDO WLPH WKH\ WKRXJKW 3ODLQWLIIV WR HLWKHU RU KRXUV SHU ZHHN QHFHVVDU\ %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO WKHRIILFHUVFDULQJIRUWKHLUGRJVDWKRPHUHSUHVHQWHGWKHLU &RY0XVFRGD/RFDO1RDQGUHJDUGHGWKHVHSURYLVLRQV UHFLSURFDWHG SHUVRQDOGHYRWLRQORYHDQGDIIHFWLRQIRUWKHLU mDV QHFHVVDULO\ LQGLFDWLYH RI D &RQJUHVVLRQDO LQWHQWLRQ WR FDQLQHSDUWQHUV7KHGLVWULFWFRXUWjVIDLOXUHWRFRQVLGHUWKH JXDUDQWHH HLWKHU UHJXODU RU RYHUWLPH FRPSHQVDWLRQ IRU DOO P\ULDGQXDQFHGFLUFXPVWDQFHVRWKHUWKDQGRJFDUHWLPHWKDW DFWXDOZRUNRUHPSOR\PHQWl7HQQHVVHH&RDO,URQ 55 FRPSULVHmDOOWKHSHUWLQHQWIDFWVl LQWKLVFDVHZDUUDQWVRXU &RY0XVFRGD/RFDO1R86 GHHSHUDQDO\VLV 7KHWHUPRIDUWmZRUNlZKLFKLQFOXGHVmWRVXIIHURUSHUPLWWR ZRUNl 86& J PHDQV mSK\VLFDO RU PHQWDO 7ZRRWKHUFLUFXLWVKDYHFRQVLGHUHGWKLVLVVXHRIZKHWKHU H[HUWLRQ ZKHWKHUEXUGHQVRPHRUQRW FRQWUROOHGRUUHTXLUHG FDQLQHKDQGOHUVDQGWKHLUHPSOR\HUVKDGUHDFKHGDUHDVRQDEOH E\WKHHPSOR\HUDQGSXUVXHGQHFHVVDULO\DQGSULPDULO\IRUWKH DJUHHPHQW,Q+RO]DSIHOWKHFRXUWUHIXVHGWRFKDUDFWHUL]HWKH EHQHILW RI WKH HPSOR\HU DQG KLV EXVLQHVVl 0XVFRGD HPSOR\HUjV SROLF\ DV mUHDVRQDEOHl EHFDXVH WKH HPSOR\HU 86DW (YHQZRUNSHUIRUPHGRIIGXW\FDQTXDOLI\DV VHHPHG WR KDYH LPSRVHG LWV SROLF\ RQ WKH KDQGOHUV QR ZRUN DQG HQWLWOH DQ HPSOR\HH WR FRPSHQVDWLRQ XQGHU WKH HYLGHQFHVXJJHVWHGWKDWDQ\FDQLQHRIILFHUZDVLQYROYHGLQ )/6$ 6HH 6WHLQHU Y 0LWFKHOO 86 GHWHUPLQLQJ KRZ PXFK RYHUWLPH ZDV VXIILFLHQW DQG WKH KROGLQJWKDWHPSOR\HHVPXVWEHFRPSHQVDWHGIRUmDFWLYLWLHV SROLFHFKLHIWHVWLILHGWKDWXSWRRQHKRXUSHUGD\H[FOXVLYHRI SHUIRUPHGHLWKHUEHIRUHRUDIWHUWKHUHJXODUZRUNVKLIWLI WUDLQLQJ FRXOG EH H[SHQGHG RQ GRJFDUH DFWLYLWLHV 6HH WKRVHDFWLYLWLHVDUHDQLQWHJUDODQGLQGLVSHQVDEOHSDUWRIWKH +RO]DSIHO)GDW,Q5XGROSKWKHMXU\IRXQGD SULQFLSDO DFWLYLWLHV IRU ZKLFK FRYHUHG >HPSOR\HHV@ DUH UHDVRQDEOH DJUHHPHQW DV WR RQGXW\ GD\V DQG WKH DSSHDOV HPSOR\HGl FRXUWKHOGWKHHPSOR\HUHQWLWOHGWRMXGJPHQWDVDPDWWHURI ODZEHFDXVHWKHDJUHHPHQWZDVUHDVRQDEOHDVWRRIIGXW\GD\V )RUHVKDGRZLQJWKHGHPLQLPLVGRFWULQHDQGWKHSUREOHPV DVZHOO6HH5XGROSK)GDW DVVRFLDWHGZLWKXQVXSHUYLVHGDWKRPHGXWLHVWKDWPD\QRWEH H[FOXVLYHO\ IRU WKH HPSOR\HUjV EHQHILW WKH 6XSUHPH &RXUW :KLOH WKH 5XGROSK SODLQWLIIV LQVLVWHG WKDW WKH HPSOR\HU ORQJ DJR QRWHG WKH )/6$ mGRHV QRW IRUHFORVH RI FRXUVH NQHZRUKDGUHDVRQWRNQRZWKDWWKH\SHUIRUPHGZRUNIRUWKH UHDVRQDEOH SURYLVLRQV RI FRQWUDFW RU FXVWRP JRYHUQLQJ WKH HPSOR\HUjVEHQHILWEH\RQGWKDWSURYLGHGIRULQWKHDJUHHPHQW FRPSXWDWLRQ RI ZRUN KRXUV ZKHUH SUHFLVHO\ DFFXUDWH WKH FRXUW GHHPHG WKH HPSOR\HU HQWLWOHG WR UHO\ RQ WKH FRPSXWDWLRQLVGLIILFXOWRULPSRVVLEOH1RUDUHZHFRQFHUQHG SODLQWLIIVWRIROORZWKHFOHDUWHUPVRIWKHLUDJUHHPHQWDQGKHOG KHUH ZLWK WKH HIIHFW WKDW FXVWRP DQG FRQWUDFW PD\ KDYH LQ WKDWWKHHPSOR\HUQHLWKHUVXIIHUHGQRUSHUPLWWHGDGGLWLRQDO ERUGHUOLQH FDVHV ZKHUH WKH RWKHU IDFWV JLYH ULVH WR VHULRXV GRXEWV DV WR ZKHWKHU FHUWDLQ DFWLYLW\ RU QRQDFWLYLW\ FRQVWLWXWHVZRUNRUHPSOR\PHQWl0XVFRGD86DW FI6NLGPRUHY6ZLIW &R86 m7KLV PHDQV WKDW HPSOR\HUV DQG HPSOR\HHV PD\ UHVROYH ZKHWKHU FHUWDLQ DFWLYLW\ LV µZRUNj WKURXJK D FROOHFWLYH EDUJDLQLQJDJUHHPHQWDVORQJDVWKHDJUHHPHQWFRPSRUWVZLWK 7KH SROLF\ LQFOXGHG WZR GD\V SHU PRQWK RI VFKHGXOHG UHWUDLQLQJ DQG WZR KRXUV SHU ZHHN RI RYHUWLPH FRPSHQVDWLRQ 7KH FDVH GRHV QRW WKH)/6$l/HDK\Y&LW\RI&KLFDJR )G WK LQGLFDWH ZKHWKHU WKH GHSDUWPHQW DVVLJQHG WKH RIILFHUV D WDNHKRPH SROLFH &LU FUXLVHU EXLOW D NHQQHO DW WKH KDQGOHUVj KRPHV RU SDLG IRU DOO IRRG DQG YHWHULQDU\ FDUH 2IILFHU +RO]DSIHO FRQWHQGHG WKDW mKH VSHQW EHWZHHQ 7KHUHIRUH WR GHWHUPLQH ZKHWKHU WKH RIILFHUV SHUIRUPHG RIIGXW\ KRXUV HDFK ZHHN JURRPLQJ EDWKLQJ IHHGLQJ H[HUFLVLQJ FRPSHQVDEOHmZRUNlWKHGLVWULFWFRXUWKDGWRFRQIURQWWKUHH WUDLQLQJ DQG FOHDQLQJ XS DIWHU %DQGLWl +RO]DSIHO )G DW %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO LVVXHV 'LG &LQFLQQDWL UHTXLUH RU VXIIHU WKH KDQGOHUV WR 7KH NH\ TXHVWLRQ LV ZKHWKHU WKH DJUHHPHQW WKH SDUWLHV SHUIRUPWKHGRJFDUHGXWLHVDWLVVXH" +RZPXFKLIDQ\RI UHDFKHG LV UHDVRQDEOH PHDQLQJ RQH RXW RI D YDULHW\ RI WKHLURIIGXW\H[HUWLRQGLGWKHKDQGOHUVSXUVXHQHFHVVDULO\DQG DFFHSWDEOH DJUHHPHQWV $ FRXUWjV WDVN LV QRW WR ILQG WKH SULPDULO\ IRU WKH EHQHILW RI WKH &LW\" :DV WKLV RIIGXW\ UHDVRQDEOHDJUHHPHQWIRUQRQHH[LVWV,QVWHDGDFRXUWPXVW HIIRUW DQ LQWHJUDO DQG LQGLVSHQVDEOH SDUW RI WKH SULQFLSDO DVFHUWDLQZKHWKHUWKLVDJUHHPHQWIDOOVZLWKLQDEURDG]RQHRI DFWLYLWLHV IRU ZKLFK WKH KDQGOHUV ZHUH HPSOR\HG" 6HH UHDVRQDEOHQHVVFRQVLGHULQJLWVWHUPVDQGDOORIWKHIDFWVDQG +RO]DSIHO)GDW FLUFXPVWDQFHVRIWKHSDUWLHVjUHODWLRQVKLS ([HUWLRQV5HTXLUHGRU6XIIHUHGE\&LQFLQQDWL 7KHGLVWULFWFRXUWGLGQRWH[DPLQHDOORIWKHSHUWLQHQWIDFWV LQ WKH DJUHHPHQW DV H[SOLFLWO\ DQG 0XVFRGD 7KH GLVWULFW FRXUW IRXQG WKDW &LQFLQQDWL UHTXLUHG WKH LPSOLFLWO\ LQVWUXFW ,Q LVVXLQJ LWV DEUXSW mXQUHDVRQDEOH KDQGOHUVWRWDNHWKHLUGRJVKRPHDQGFDUHIRUWKHPWKHUH,W DJUHHPHQWlKROGLQJWKHGLVWULFWFRXUWQRZKHUHPHQWLRQHGWKDW REVHUYHG WKDW WKH &LW\ KDG SOHQDU\ DXWKRULW\ WR OLPLW WKH WKH &LW\ SURYLGHG HDFK RIILFHU ZLWK D WDNHKRPH SROLFH DPRXQW RI WLPH RIILFHUV VSHQW ZRUNLQJ ZLWK WKHLU GRJV EXW YHKLFOH ZLWKDOOWKHEHQHILWVDQGGHWULPHQWVWKDWEULQJV RU FKRVHQRWWRH[HUFLVHWKDWULJKWEH\RQGUHFRPPHQGLQJWKDW WKDW WKH &LW\ EXLOW DQ HODERUDWH FRQFUHWHEDVH IHQFHG GRJ GRJVVSHQGDWOHDVWWZRKRXUVSHUGD\LQWKHLURXWGRRUNHQQHOV NHQQHODWWKHKDQGOHUjVKRPH,QUHDFKLQJLWVGHWHUPLQDWLRQ &RQVLGHULQJ WKH J GHILQLWLRQ RI mZRUNl WKH FRXUW DVWRWKHUHDVRQDEOHQHVVRIWKHDJUHHPHQWWKHGLVWULFWFRXUW VWDWHG m7KHRWKHUSDUWRIWKHHTXDWLRQLVGLGWKHHPSOR\HU GLG QRW PHQWLRQ WKDW WKH &LW\ SD\V IRU DOO GRJ IRRG DQG NQRZWKDWWKLVZRUNZDVEHLQJSHUIRUPHG"'LGWKHHPSOR\HU YHWHULQDU\FDUH$GGLWLRQDOO\WKH&LW\RFFDVLRQDOO\SDLGWR NQRZ WKH H[WHQW RI WKH ZRUN " $QG GLG WKH HPSOR\HU VHQG WKH RIILFHUV WR SROLFH GRJ FRPSHWLWLRQV WUHDWHG VXIIHURUSHUPLWWKHZRUNWREHSHUIRUPHG"l) &DW SDUWLFLSDWLRQ LQ VXFK FRPSHWLWLRQV DV mRQ GXW\l WLPH DQG 7KHFRXUWREVHUYHGWKDWWKHRIILFHUVFRXOGKDYHEURXJKWWKHLU DOORZHGWKHRIILFHUVRQHIXOOGD\SHUGD\F\FOHIRUmRQ FRQFHUQV WR WKH DWWHQWLRQ RI WKHLU )23 UHSUHVHQWDWLYHV IRU GXW\lWUDLQLQJDQGGRJDQGYHKLFOHPDLQWHQDQFH7KHGLVWULFW GLVFXVVLRQDWFROOHFWLYHEDUJDLQLQJEXWWKHRIILFHUVGHFOLQHG FRXUWGLGQRWFRQVLGHUnSHUKDSVEHFDXVHWKHVHIDFWRUVGHI\ WR GR VR 7KH FRXUW WKHQ PHQWLRQHG &DSWDLQ &RWWRQjV FDOFXODWLRQnWKHFRVWVDQGEHQHILWVRIKDYLQJDKLJKO\WUDLQHG WHVWLPRQ\ ILQGLQJ WKDW WKH &LW\ NQHZ WKURXJK &RWWRQjV SROLFH GRJ DQG IDPLO\ SHW LQ WKH RIILFHUjV KRPH DQG RI NQRZOHGJH WKDW WKH RIILFHUV ZHUH VSHQGLQJ D VLJQLILFDQW KDYLQJ D IDPLOLDU FRPSDQLRQ DW WKH RIILFHUjV VLGH ZKLOH DPRXQW RI WLPH FDULQJ IRU WKHLU GRJV RIIGXW\ m&DSWDLQ SDWUROOLQJWKHVWUHHWVRI&LQFLQQDWL1RUGLGWKHGLVWULFWFRXUW &RWWRQKDVWHVWLILHGDQGWKH&RXUWDFFHSWVWKDWRQHKRXUDGD\ FRQVLGHUWKHDGPLQLVWUDWLYHFRVWVDQGRWKHUSUREOHPVWKH&LW\ LQDGGLWLRQWRWKHnRQHKRXUDGD\DVRYHUWLPHRQZRUNGD\V ZRXOGIDFHLQDWWHPSWLQJWRPRQLWRURUPHDVXUHKRZPXFK DQG RQHDQGDKDOI KRXU SHU GD\ RQ QRQZRUN GD\V 7KH mZRUNlWKHRIILFHUVSHUIRUPHGDWKRPHZKLOHRIIGXW\7KH &RXUW DGRSWV WKLV HYLGHQFH DV WKH IDLU DQG UHDVRQDEOH DQG FRXUWVWUHVVHGWKDWWKH&LW\GLGQRWLVVXHDQ\OLPLWDWLRQVRQWKH SURSHUDQGSHUPLWWHGWLPHRIZRUNDVRYHUWLPHWRZKLFKWKHVH DPRXQWRIWLPHRIILFHUVVSHQWFDULQJIRUWKHLUGRJVRIIGXW\ RIILFHUVDUHHQWLWOHGl) &DW$WWKLVSRLQWZLWKRXW EXWWKHUHFRUGFOHDUO\HVWDEOLVKHGWKDWWKH&LW\UHFRPPHQGHG IXUWKHUDQDO\VLVWKHGLVWULFWFRXUWKHOGmWKDW WKHDJUHHPHQW VHQGLQJ WKH GRJV RXWVLGH IRU OHDVW WZR KRXUV SHU GD\ DQG WKDW DSSHDUV LQ WKH FROOHFWLYH EDUJDLQLQJ FRQWUDFW LV QRW HQFRXUDJHGWKHRIILFHUVWRWUHDWWKHGRJVDVIDPLO\SHWVZKLOH UHDVRQDEOHl,ELG DWKRPH7KHGLVWULFWFRXUWjVPRVWVLJQLILFDQWFRPPHQWVRQ WKHFRPSOH[LWLHVRIWKHZRUNQRQZRUNSUREOHPLQWKLVFDVH DFNQRZOHGJHGWKDWDQDSSUHFLDEOHSRUWLRQRIWKHWLPHVSHQWE\ %URFNHWDOY&LW\ 1RV 1RV %URFNHWDOY&LW\ RI&LQFLQQDWLHWDO RI&LQFLQQDWLHWDO RIDJUHHPHQWVEHWZHHQWKHSDUWLHV6HH+RO]DSIHO)G 7KH FRXUWjV ILQGLQJ LQ UHOLDQFH RQ &DSWDLQ &RWWRQjV DW WHVWLPRQ\VHUYHGDVWKHORGHVWDURIWKHMXGJPHQW$VVXPLQJ WKLV ILQGLQJ DFFXUDWHO\ UHIOHFWV &RWWRQjV WHVWLPRQ\ RU KDV 7KLV FRXUW UHYLHZV GH QRYR WKH XOWLPDWH TXHVWLRQ RI VXSSRUWHOVHZKHUHLQWKHUHFRUGLWLVLUUHOHYDQWWRDOORIWKH ZKHWKHU WKH SDUWLHV UHDFKHG D UHDVRQDEOH DJUHHPHQW WR WKUHHTXHVWLRQVSRVHGDERYH7KHFRXUWjVILQGLQJVHHPVWREH FRPSHQVDWHWKHRIILFHUVIRUWKHLUWLPH&I0DUWLQY:( LWV FRQFOXVLRQ DV WR D UHDVRQDEOH DPRXQW RI WLPH WR 0RQNV &R)G WDEOH :/DW FRPSHQVDWH WKH RIILFHUV IRU 7KDW WKH FRXUWjV YHU\ QH[W 1R WK&LU$XJ $VGHVFULEHGDERYHZH VWDWHPHQW IRXQG WKH FROOHFWLYH EDUJDLQLQJ DJUHHPHQW DUH ERUURZLQJ IURP WKH GLVWULFW FRXUWjV KRXURQZRUNGD\V XQUHDVRQDEOH ZLWK QR IXUWKHU DQDO\VLV FRQILUPV WKDW WKH DQGKRXUDQGDKDOIRQQRQZRUNGD\V mUHDVRQDEOH WLPHl GLVWULFWFRXUWPLVGLUHFWHGLWVLQTXLU\ ILQGLQJDQGSUHVXPLQJWKDWWKDWILJXUHDFWXDOO\UHSUHVHQWVWKH DPRXQWRI)/6$mZRUNlWKHRIILFHUVSHUIRUPHGZKLOHRII GXW\ 7KH GLVWULFW FRXUWjV mUHDVRQDEOH WLPHl ILQGLQJ LOOXPLQDWHG E\ LWV FRQWH[W UHVHPEOHV D FRQFOXVLRQ WKDW DQ DJUHHPHQW IL[LQJ FRPSHQVDWLRQ DW WKDW ILJXUH ZRXOG EH D &DSWDLQ &RWWRQ DGPLWWHG WKDW FDQLQH KDQGOHUV RFFDVLRQDOO\ GLVFXVVHG ZKHWKHU PLQXWHV SHU GD\ WKH GDLO\ YDOXH RI WKH mGRJ GD\l LV VXIILFLHQW UHDVRQDEOHRQH7KHQH[WVHQWHQFHjVFRQFOXVRU\VWDWHPHQW WR PDLQWDLQ WKH GRJV RIIGXW\ 6HH 7 DW &RWWRQ WHVWLPRQ\ &RWWRQ WKDW WKH SDUWLHVj DJUHHPHQW KHUH ZDV QRW UHDVRQDEOH OLNHO\ DJUHHG ZLWK WKH KDQGOHUV WKDW PLQXWHV ZDV QRW VXIILFLHQW FRPSHQVDWLRQ UHVXOWVIURPDFRPSDULVRQRIWKHmUHDVRQDEOHWLPHlILJXUHWR IRU WKH DWKRPH FDUH DQG PDLQWHQDQFH RI WKH FDQLQHV $00 7 DW WKHDFWXDODJUHHPHQWZKLFKSURYLGHGRQO\VHYHQWHHQPLQXWHV &RWWRQ WHVWLPRQ\ ,Q UHVSRQVH WR D TXHVWLRQ IURP WKH EHQFK &RWWRQ FRPPHQWHG WKDW RIIGXW\ GD\V LQYROYHG PRUH DWKRPH ZRUN WKDQ RQGXW\ RIFRPSHQVDWLRQSHUGD\6XFKDVLPSOHFRPSDULVRQnHYHQ GD\V EHFDXVH m>W@KHUHjV VRPH JURRPLQJ DQG H[HUFLVLQJ WKDW \RX FDQ GR LI LW UHVWHG RQ D mZRUNl UDWKHU WKDQ D mUHDVRQDEOH WLPHl >RQ@ GXW\ 7KHUHIRUH LI \RXjUH RII GXW\ WKH\ ZRXOG KDYH WR EH GRQH RQ FRPSDULVRQnLVQRWVXIILFLHQWWRUHVROYHWKHTXHVWLRQRIWKH \RXU RZQ WLPHl 7 DW &RWWRQ WHVWLPRQ\ :KHQ DVNHG LI DQ\ FDQLQH DJUHHPHQWjVUHDVRQDEOHQHVV KDQGOHUV KDG HYHU WROG KLP ZKDW WKH\ WKRXJKW WKH DGHTXDWH DPRXQW RI WLPH VKRXOG EH IRU WKHLU FRPSHQVDWLRQ &RWWRQ UHSOLHG m, WKLQN ZH FDPH WR D JHQHUDO FRQFOXVLRQ DERXW DQ KRXU DQ KRXUDQGDKDOI SHU GD\l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n GHVSLWH QHFHVVDULO\ DQG SULPDULO\ IRU WKH EHQHILW RI WKH &LW\ $W EHVW WKH GLVWULFW WKHLU YDOXDEOH FRQWULEXWLRQV WR ODZ HQIRUFHPHQWn EHFDXVH RI FRXUW WRRN D VHULHV RI ORJLFDO OHDSV WR ILQG WKDW &DSWDLQ &RWWRQjV WHVWLPRQ\ FRVW >$IWHU UHDFKLQJ DQ DJUHHPHQW@ . RIILFHUV ZLOO NQRZ UHIOHFWHG D IDLU UHTXHVW E\ RIILFHUV IRU SD\PHQW IRU HIIRUWV H[SHQGHG SUHFLVHO\ WKH H[WHQW RI WKHLU UHVSRQVLELOLWLHV 0XQLFLSDOLWLHV DQG SULPDULO\ WR EHQHILW WKH &LW\ 7R WKH H[WHQW WKLV ILQGLQJ SXUSRUWV WR WKHLU SROLFH GHSDUWPHQWV FDQ EXGJHW ZLWK UHODWLYH DFFXUDF\ DQG GHWHUPLQH WKH DPRXQW RI mZRUNl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mµVSHQW KRXUV 6HH 0XVFRGD 86 DW %HFDXVH RI WKH DGGLWLRQDOWLPHRYHUDQGDERYHWKHKRXUVRIUHJXODUWLPH GLIILFXOW\ LQ GHWHUPLQLQJ WKH H[DFW KRXUV ZRUNHG LQ SOXV KRXUV RI RYHUWLPH SHU ZHHN IRU ZKLFK KH ZDV FLUFXPVWDQFHVZKHUHXQVXSHUYLVHGHPSOR\HHVFDQGLYLGHWKHLU FRPSHQVDWHGLQSHUIRUPLQJZRUNZKLFKZDVUHDVRQDEO\ WLPHEHWZHHQmZRUNlDQGSHUVRQDOSXUVXLWVmDQ\UHDVRQDEOH QHFHVVDU\WRIXOILOOKLVGXWLHVRIIHHGLQJJURRPLQJFDULQJIRU DJUHHPHQWRIWKHSDUWLHVZKLFKWDNHVLQWRDFFRXQWDOORIWKH DQG WUDLQLQJ WKH . XQLW GRJ DVVLJQHG WR KLP jl SHUWLQHQW IDFWV ZLOO EH DFFHSWHGl &)5 +RO]DSIHO)GDW TXRWLQJWKHGLVWULFWFRXUWjVMXU\ 6LPLODUO\ ZKHQ mZRUNl PLJKW LWVHOI EH D SHUVRQDO SXUVXLW LQVWUXFWLRQV HPSKDVLV DGGHG 7KH 6HFRQG &LUFXLW UHVROYLQJ ZKHWKHU SDUWLFXODU HIIRUWV ZHUH H[SHQGHG GHWHUPLQHGWKDWWKHmUHDVRQDEOHWLPHQHFHVVDU\WRFRPSOHWHD QHFHVVDULO\ DQG SULPDULO\ IRU WKH EHQHILW RI WKH HPSOR\HU WDVNlVWDQGDUGUHOLHGRQE\WKHGLVWULFWFRXUWLQIRUPXODWLQJWKH SURYHVVRXQUHDOLVWLFWKDWFRXUWVVKRXOGQRWRQO\DFFHSWDQG MXU\FKDUJHRULJLQDWHGLQD7HQWK&LUFXLWFDVH7KHDQDO\VLV HQIRUFHUHDVRQDEOHDJUHHPHQWVEXWVKRXOGHQFRXUDJHWKHP DQGKROGLQJLQWKDWFDVHZDVGHVLJQHGWRSUHYHQWHPSOR\HHV IURPFROOHFWLQJRYHUWLPHIRUWDVNVRQZKLFKWKH\FRXOGVSHQG 7KH 5XGROSK FRXUW GHHPHG WKH UDWLRQDOH IRU KDYLQJ WKH DQ LQRUGLQDWH DPRXQW RI WLPH EHFDXVH WKH HPSOR\HHV KDG mUHDVRQDEOHDJUHHPHQWDVWRKRPHµZRUNjlUXOHSDUWLFXODUO\ mµFRQVLGHUDEOHIOH[LELOLW\DQGSHUVRQDOGLVFUHWLRQZLWKUHJDUG JHUPDQHWRFDQLQHKDQGOHUFDVHV6HH5XGROSK)GDW WRWKHWLPHDQGVSHHG>DWZKLFK@WKHVHDFWLYLWLHVWRRNSODFHjl 1RWLQJWKDWWKHmHPSOR\HUFDQQRWHDVLO\GHWHUPLQHKRZ 6HHLGDW TXRWLQJ5HLFKY,%3,QF)G ORQJWKHRIILFHUVZRUNDWKRPHFDULQJIRUWKHGRJVlWKHFRXUW WK &LU 7KH 6HFRQG &LUFXLW UHMHFWHG WKH REVHUYHGWKDWm>W@KHLQGHWHUPLQDWHQDWXUHRIWKHVHWDVNV mUHDVRQDEOHWLPHlVWDQGDUGDVDSRVVLEOHVXEVWLWXWHIRUDGLUHFW PDNHVWKHPH[DFWO\WKHVRUW RI ZRUNDVWRZKLFKLWPDNHV ILQGLQJRQKRZPXFKmZRUNlRIILFHUVSHUIRUPHGEHFDXVHWKH VHQVHIRUWKHSDUWLHVWRFRPHWRDQDJUHHPHQWWRHOLPLQDWH mLQGLYLGXDOWUDLWVDQGQHHGVRIRIILFHUVDQGDQLPDOVSUHFOXGH FRPSOLFDWHGUHSHWLWLRXVDQGKDUGWRUHVROYHGLVSXWHVDERXW DQ\HDV\GHWHUPLQDWLRQDVWRZKDWLVDµUHDVRQDEOHWLPHjIRUD H[DFWO\KRZPXFKWLPHLWWRRNWRWDNHFDUHRIWKHGRJVHDFK . RIILFHU WR WDNH FDUH RI KLV GRJl ,ELG $OWKRXJK WKH GD\l,ELG$QGWKH5XGROSKFRXUWGLGQRWHYHQPHQWLRQWKH GLVWULFWFRXUWKHUHUHFLWHGWKH6HFRQG&LUFXLWjVKROGLQJWKDW DGGHGFRPSOH[LW\RIVRUWLQJRXWKRZPXFKRIWKHWLPHVSHQW m>D@UHDVRQDEOHQHVVVWDQGDUGLVLQDSSURSULDWHLQGHFLGLQJKRZ IHHGLQJJURRPLQJH[HUFLVLQJDQGSOD\LQJZLWKWKHGRJVZDV PDQ\ RYHUWLPH KRXUV IRU ZKLFK D . RIILFHU VKRXOG EH H[SHQGHG QHFHVVDULO\ DQG SULPDULO\ IRU WKH EHQHILW RI WKH FRPSHQVDWHGlVHH) &DW TXRWLQJ+RO]DSIHO)G HPSOR\HU:LWKGLIILFXOWIDFWXDOSUREOHPVVZLUOLQJDURXQG DW WKHKRXUWRKRXUDQGDKDOIILQGLQJDSSHDUVWREHMXVW ERWK WKH LVVXH RI ZKDW DPRXQWV WR )/6$ mZRUNl DQG WKH WKDW DGHWHUPLQDWLRQRIZKDWLVDUHDVRQDEOHDPRXQWRIWLPH PRQLWRULQJDQGFDOFXODWLRQRIWLPHVSHQWRQVXFKmZRUNl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jV IODZHG mUHDVRQDEOH WLPHl KDYHWKHPUHDG\IRUUHFDOOWRDFWLYHVHUYLFHDWDPRPHQWjV ILQGLQJ DQG DVVXPH WKDW WKH RIILFHUV H[HUWHG WKHPVHOYHV LQ QRWLFH7KLVSURRIDGHTXDWHO\DQVZHUVWKHWKLUGTXHVWLRQLQ DFWLYLWLHVWKDWZHUHQHFHVVDULO\DQGSULPDULO\IRUWKHEHQHILWRI WKHDIILUPDWLYH WKHLUHPSOR\HUIRURQHKRXURQZRUNGD\VDQGRQHDQGDKDOI KRXUVRQQRQZRUNGD\V &RQFOXVLRQ m:RUNl $Q,QGLVSHQVDEOH3DUWRI3ULPDU\$FWLYLWLHV 7KLV FRXUW DVVXPHV IRU SXUSRVH RI WKH IRUHJRLQJ GLVFXVVLRQWKDWDWOHDVWVRPHRIWKHSODLQWLIIVjGRJFDUHHIIRUWV 7KHGLVWULFWFRXUWIRXQGWKHKDQGOHUVjHIIRUWVDmQHFHVVDU\ DPRXQW WR )/6$ mZRUNl LH DQ H[HUWLRQ QRW VSHFLILFDOO\ DQGDQDSSURSULDWHSDUWRIWKHLUZRUNl) &DW UHTXLUHG E\ EXW H[SHQGHG DV H[SHFWHG QHFHVVDULO\ DQG EXWVXFKILQGLQJGRHVQRWFOHDUO\UHVROYHWKHWKLUGTXHVWLRQ SULPDULO\IRUWKHEHQHILWRIWKH&LQFLQQDWL3ROLFH'LYLVLRQ ZKLFK DVNV ZKHWKHU WKH RIILFHUVj RIIGXW\ HIIRUWV ZHUH DQ DQGVHUYLQJDVDQLQWHJUDODQGLQGLVSHQVDEOHSDUWRIWKHSROLFH LQWHJUDODQGLQGLVSHQVDEOHSDUWRIWKHSULQFLSDODFWLYLWLHVRI RIILFHUVjGXWLHVDVFDQLQHKDQGOHUV WKHLUHPSOR\PHQW$OWKRXJKWKHTXHVWLRQLVVXEMHFWWRGHEDWH WKH6HFRQG&LUFXLWKDVKHOGWKDWmZDONLQJIHHGLQJWUDLQLQJ %7KH'H0LQLPLV:RUN'RFWULQH JURRPLQJ DQG FOHDQLQJ XS DUH LQWHJUDO DQG LQGLVSHQVDEOH SDUWVRIWKHKDQGOHUjVSULQFLSDODFWLYLWLHVDQGDUHFRPSHQVDEOH ,Q WKH 6XSUHPH &RXUW VHHPHG WR UHFRJQL]H WKH GH DV ZRUNl 1HZ
Brock v. Cincinnati (Brock v. Cincinnati) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.