Calvert v. Wilson
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
9,1&(17 / &$/9(57 ; 3HWLWLRQHU$SSHOODQW 1R Y ! s8/,86 :,/621:DUGHQ 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1R n*HRUJH&6PLWK'LVWULFWsXGJH $UJXHG 2FWREHU 'HFLGHGDQG)LOHG $SULO %HIRUH 6,/(5DQG&2/(&LUFXLWsXGJHV 67$))25' 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 6LREKDQ52j.HHIIH38%/,&'()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV2KLRIRU$SSHOODQW6WXDUW$&ROH2)),&(2)
7KH +RQRUDEOH :LOOLDP 6WDIIRUG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI )ORULGD VLWWLQJ E\ GHVLJQDWLRQ
&DOYHUWY:LOVRQ 1R
7+( $77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21 &ROXPEXV 2KLR IRU $SSHOOHH 21 %5,() 6LREKDQ 5 2j.HHIIH 'DYLG + %RGLNHU 38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW sRQDWKDQ 5 )XONHUVRQ 2)),&( 2) 7+( $77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21&ROXPEXV2KLRIRU$SSHOOHH 67$))25''sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQ ZKLFK6,/(5sMRLQHG&2/(s SS GHOLYHUHGD VHSDUDWHRSLQLRQFRQFXUULQJLQWKHMXGJPHQWRQO\ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 67$))25''LVWULFWsXGJH3HWLWLRQHU9LQFHQW/&DOYHUW m&DOYHUWl DSSHDOV WKH GHQLDO RI KLV SHWLWLRQ IRU ZULW RI KDEHDVFRUSXVE\DSHUVRQLQVWDWHFXVWRG\:HUHYHUVH ,7+((9,'(1&( ,Q)HEUXDU\RI WKHJUDQGMXU\RI*XHUQVH\&RXQW\ 2KLR UHWXUQHG DQ LQGLFWPHQW FKDUJLQJ &DOYHUW DQG (UZLQ 0DOORU\ m0DOORU\l ZLWKRQHFRXQWRIDJJUDYDWHGUREEHU\ DQG RQH FRXQW RI DJJUDYDWHG PXUGHU ZLWK D GHDWK SHQDOW\ VSHFLILFDWLRQ$OWKRXJKFKDUJHGLQWKHVDPHLQGLFWPHQWZLWK WKHVDPHRIIHQVHV&DOYHUWDQG0DOORU\ZHUHWULHGVHSDUDWHO\ &DOYHUWZHQWWRWULDOILUVW $W &DOYHUWjV WULDO WKH SURVHFXWRU LQWURGXFHG D VWDWHPHQW JLYHQE\&DOYHUWWRSROLFHRIILFHUVDIWHUKLVDUUHVW$FFRUGLQJ WR &DOYHUW RQ WKH DIWHUQRRQ RI )HEUXDU\ KH VSHQW WKUHHRUIRXUKRXUVSOD\LQJFDUGVDQGGULQNLQJZKLVNH\ZLWK 5REHUW%HQQHWW m%HQQHWWl LQ%HQQHWWjVDSDUWPHQW:KHQKH OHIW %HQQHWWjV DSDUWPHQW DW IRXU RU ILYH RjFORFN LQ WKH DIWHUQRRQ&DOYHUWILUVWZHQWWRWKHDSDUWPHQWRI3DXO%DWHV IURP ZKRP KH ERUURZHG VRPH PRQH\ WKHQ ZHQW WR WKH DSDUWPHQWRIDQDFTXDLQWDQFH&LQG\&KDOIDQW m&KDOIDQWl 1R &DOYHUWY:LOVRQ
ZKROLYHGLQWKHDSDUWPHQWQH[WWR%HQQHWWjV0DOORU\VRRQ DIWHUNQRFNHGRQ&KDOIDQWjVGRRUDQGDVNHG&DOYHUWWRJRQH[W GRRUZLWKKLPWRVHH%HQQHWWZKR0DOORU\VDLGKDGULSSHG 0DOORU\RIIWKHSUHYLRXVQLJKWIRURQHKXQGUHGGROODUV:KHQ %HQQHWW D ZKLWH PDQ VDZ 0DOORU\ DW KLV GRRU KH LPPHGLDWHO\EHJDQ\HOOLQJDW0DOORU\XVLQJDUDFLDOHSLWKHW DQGWHOOLQJKLPWRJHWRXW$OOWKUHHPHQZHUHLQWR[LFDWHG &DOYHUW WROG SROLFH RIILFHUV WKDW QRW WKLUW\ VHFRQGV DIWHU 0DOORU\ DQG &DOYHUW HQWHUHG %HQQHWWjV DSDUWPHQW 0DOORU\ SXOOHGDKDWFKHWIURPXQGHUKLVILHOGMDFNHWDQGVWDUWHGKLWWLQJ %HQQHWWRQWKHEDFNRIWKHKHDG$IWHUVHYHUDOKLWV0DOORU\ VWRSSHGWKHEHDWLQJDQGHYHQKHOSHG%HQQHWWLQWRDFKDLUDW WKHNLWFKHQWDEOH+HEHJDQWKHEHDWLQJDJDLQKRZHYHUWKLV WLPHZLWKDVWLFNZKHQKHKHDUG%HQQHWWDVN&DOYHUWWRKHOS KLPJHW0DOORU\RXWRIKLVKRXVH :KHQ WKHVWLFNEURNH 0DOORU\SLFNHGXSDEXWFKHUNQLIHDQGDSSURDFKLQJ%HQQHWW IURPEHKLQGVODVKHG%HQQHWWDFURVVWKHWKURDW&DOYHUWZKR ZDV VLWWLQJ DW WKH WDEOH IDFLQJ %HQQHWW ZKHQ EORRG VWDUWHG IO\LQJJRWXSIURPKLVFKDLUWROG0DOORU\KHZDVFUD]\DQG UDQIURPWKHVFHQHOHDYLQJ0DOORU\DQG%HQQHWWVWLOODOLYHDW WKHWLPHLQWKHDSDUWPHQW &DOYHUWH[SODLQHGWKDWDIWHUOHDYLQJ%HQQHWWjVDSDUWPHQW KHWRRNDFDEWRDEDULQ%\HVYLOOH2KLR+HVWD\HGDWWKH EDUXQWLOFORVLQJDWZKLFKWLPHIULHQGVWRRNKLPWRKLVKRPH ZKLFKZDVDOVRLQ%\HVYLOOH7KHQH[WPRUQLQJKHWRRND FDEWR&KDOIDQWjVDSDUWPHQWZKHUHSROLFHRIILFHUVVRRQDIWHU IRXQGKLPVWLOOGUHVVHGLQWKHEORRGVSDWWHUHGFORWKHVKHZDV ZHDULQJWKHHYHQLQJEHIRUH&DOYHUWWROGWKHRIILFHUVWKDWKH QHLWKHU NLOOHG %HQQHWW QRU NQHZ DQ\WKLQJ DERXW 0DOORU\jV SODQWRNLOOKLP&DOYHUWZDVSODFHGXQGHUDUUHVWDQGWDNHQWR WKHSROLFHGHSDUWPHQWZKHUHKHJDYHWKHVWDWHPHQWWKDWZDV ODWHUKHDUGE\WKHMXU\DWWULDO 7KHSURVHFXWRUFDOOHG0DOORU\ DV DZLWQHVVEXW0DOORU\ DVVHUWHG KLV )LIWK $PHQGPHQW SULYLOHJH DJDLQVW VHOI LQFULPLQDWLRQDQGUHIXVHGWRWHVWLI\2YHUGHIHQVHFRXQVHOjV REMHFWLRQ WKH WULDO FRXUW WKHQ DGPLWWHG D WDSHUHFRUGHG FRQIHVVLRQJLYHQE\0DOORU\WRWKHSROLFHDIWHUKLVDUUHVW,Q &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ
WKDWFRQIHVVLRQ0DOORU\GHVFULEHGDGLIIHUHQWYHUVLRQRIWKH HVVHQWLDOO\DVNHGWKLV&RXUWWRGRDVPXFKSDUWLFXODUO\JLYHQ HYHQWVWKDWUHVXOWHGLQ%HQQHWWj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jVDSDUWPHQW 0DOORU\WROGWKHRIILFHUVWKDW%HQQHWWLQYLWHGERWK0DOORU\ DQG &DOYHUW WR SOD\ FDUGV ZLWK KLP WKH YHU\ QH[W HYHQLQJ )HEUXDU\ $IWHU SOD\LQJ FDUGV IRU DSSUR[LPDWHO\ ILIWHHQ PLQXWHV 0DOORU\ DQG &DOYHUW OHIW %HQQHWW WR JR WR 0DOORU\jV DSDUWPHQW ZKHUH WKH\ DUPHG WKHPVHOYHV ZLWK NQLYHVDQGDKDPPHUIRUWKHSXUSRVHRINLOOLQJ%HQQHWW7KH WZRPHQVRRQDIWHUUHWXUQHGWR%HQQHWWjVDSDUWPHQWZKHUH DFFRUGLQJ WR 0DOORU\WKH\ ERWK DWWDFNHG %HQQHWW &DOYHUW XVLQJWKHKDPPHUDQGDSDULQJW\SHNQLIH0DOORU\XVLQJD EXWFKHUNQLIHDQG%HQQHWWjVZDONLQJVWLFN0DOORU\VDLGWKDW DIWHUKHDQG&DOYHUWKDGEHDWHQDQGVWDEEHG%HQQHWWPXOWLSOH WLPHV&DOYHUWVODVKHG%HQQHWWjVWKURDW7KHWZRWKHQOHIW %HQQHWWjVDSDUWPHQW :KLOH &DOYHUW UHWXUQHG WR &KDOIDQWjV DSDUWPHQW WR FDOO D FDE0DOORU\UHWXUQHGWRKLVRZQDSDUWPHQWWRFKDQJHFORWKHV 0DOORU\DGPLWWHGWKDWZKLOHKHZDVWKHUHKHGLVSRVHGRIWKH PXUGHUZHDSRQV+HWKUHZWKHKDPPHURXWDZLQGRZLQKLV DSDUWPHQWDQGKHGURSSHGWKHNQLYHVLQWKHVWRUPVHZHULQ IURQWRIKLVDSDUWPHQWEXLOGLQJ 0DOORU\H[SODLQHGWKDWD WKLUG NQLIH ZKLFK ZDV IRXQG E\ SROLFH RIILFHUV LQVLGH 0DOORU\jV EXLOGLQJ RQ WKH JURXQG IORRU ZDV QRW XVHG RQ %HQQHWW 5HVSRQGLQJ WR &DOYHUWjV FDOO D 5RXQG WKH &ORFN &DE &RPSDQ\ FDEGULYHU SLFNHG XS ERWK &DOYHUW DQG 0DOORU\ WDNLQJWKHPWRDEDULQ%\HVYLOOH0DOORU\VDLGWKDWKHOHIW WKHEDUDERXWWKLUW\PLQXWHVODWHUWRJREDFNWRKLVDSDUWPHQW +HZDVDUUHVWHGWKHQH[WGD\DWKRPH &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ
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
9,1&(17 / &$/9(57 ; 3HWLWLRQHU$SSHOODQW 1R Y ! s8/,86 :,/621:DUGHQ 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1R n*HRUJH&6PLWK'LVWULFWsXGJH $UJXHG 2FWREHU 'HFLGHGDQG)LOHG $SULO %HIRUH 6,/(5DQG&2/(&LUFXLWsXGJHV 67$))25' 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 6LREKDQ52j.HHIIH38%/,&'()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV2KLRIRU$SSHOODQW6WXDUW$&ROH2)),&(2)
7KH +RQRUDEOH :LOOLDP 6WDIIRUG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI )ORULGD VLWWLQJ E\ GHVLJQDWLRQ
&DOYHUWY:LOVRQ 1R
7+( $77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21 &ROXPEXV 2KLR IRU $SSHOOHH 21 %5,() 6LREKDQ 5 2j.HHIIH 'DYLG + %RGLNHU 38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW sRQDWKDQ 5 )XONHUVRQ 2)),&( 2) 7+( $77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21&ROXPEXV2KLRIRU$SSHOOHH 67$))25''sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQ ZKLFK6,/(5sMRLQHG&2/(s SS GHOLYHUHGD VHSDUDWHRSLQLRQFRQFXUULQJLQWKHMXGJPHQWRQO\ BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 67$))25''LVWULFWsXGJH3HWLWLRQHU9LQFHQW/&DOYHUW m&DOYHUWl DSSHDOV WKH GHQLDO RI KLV SHWLWLRQ IRU ZULW RI KDEHDVFRUSXVE\DSHUVRQLQVWDWHFXVWRG\:HUHYHUVH ,7+((9,'(1&( ,Q)HEUXDU\RI WKHJUDQGMXU\RI*XHUQVH\&RXQW\ 2KLR UHWXUQHG DQ LQGLFWPHQW FKDUJLQJ &DOYHUW DQG (UZLQ 0DOORU\ m0DOORU\l ZLWKRQHFRXQWRIDJJUDYDWHGUREEHU\ DQG RQH FRXQW RI DJJUDYDWHG PXUGHU ZLWK D GHDWK SHQDOW\ VSHFLILFDWLRQ$OWKRXJKFKDUJHGLQWKHVDPHLQGLFWPHQWZLWK WKHVDPHRIIHQVHV&DOYHUWDQG0DOORU\ZHUHWULHGVHSDUDWHO\ &DOYHUWZHQWWRWULDOILUVW $W &DOYHUWjV WULDO WKH SURVHFXWRU LQWURGXFHG D VWDWHPHQW JLYHQE\&DOYHUWWRSROLFHRIILFHUVDIWHUKLVDUUHVW$FFRUGLQJ WR &DOYHUW RQ WKH DIWHUQRRQ RI )HEUXDU\ KH VSHQW WKUHHRUIRXUKRXUVSOD\LQJFDUGVDQGGULQNLQJZKLVNH\ZLWK 5REHUW%HQQHWW m%HQQHWWl LQ%HQQHWWjVDSDUWPHQW:KHQKH OHIW %HQQHWWjV DSDUWPHQW DW IRXU RU ILYH RjFORFN LQ WKH DIWHUQRRQ&DOYHUWILUVWZHQWWRWKHDSDUWPHQWRI3DXO%DWHV IURP ZKRP KH ERUURZHG VRPH PRQH\ WKHQ ZHQW WR WKH DSDUWPHQWRIDQDFTXDLQWDQFH&LQG\&KDOIDQW m&KDOIDQWl 1R &DOYHUWY:LOVRQ
ZKROLYHGLQWKHDSDUWPHQWQH[WWR%HQQHWWjV0DOORU\VRRQ DIWHUNQRFNHGRQ&KDOIDQWjVGRRUDQGDVNHG&DOYHUWWRJRQH[W GRRUZLWKKLPWRVHH%HQQHWWZKR0DOORU\VDLGKDGULSSHG 0DOORU\RIIWKHSUHYLRXVQLJKWIRURQHKXQGUHGGROODUV:KHQ %HQQHWW D ZKLWH PDQ VDZ 0DOORU\ DW KLV GRRU KH LPPHGLDWHO\EHJDQ\HOOLQJDW0DOORU\XVLQJDUDFLDOHSLWKHW DQGWHOOLQJKLPWRJHWRXW$OOWKUHHPHQZHUHLQWR[LFDWHG &DOYHUW WROG SROLFH RIILFHUV WKDW QRW WKLUW\ VHFRQGV DIWHU 0DOORU\ DQG &DOYHUW HQWHUHG %HQQHWWj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jVDSDUWPHQW KHWRRNDFDEWRDEDULQ%\HVYLOOH2KLR+HVWD\HGDWWKH EDUXQWLOFORVLQJDWZKLFKWLPHIULHQGVWRRNKLPWRKLVKRPH ZKLFKZDVDOVRLQ%\HVYLOOH7KHQH[WPRUQLQJKHWRRND FDEWR&KDOIDQWjVDSDUWPHQWZKHUHSROLFHRIILFHUVVRRQDIWHU IRXQGKLPVWLOOGUHVVHGLQWKHEORRGVSDWWHUHGFORWKHVKHZDV ZHDULQJWKHHYHQLQJEHIRUH&DOYHUWWROGWKHRIILFHUVWKDWKH QHLWKHU NLOOHG %HQQHWW QRU NQHZ DQ\WKLQJ DERXW 0DOORU\jV SODQWRNLOOKLP&DOYHUWZDVSODFHGXQGHUDUUHVWDQGWDNHQWR WKHSROLFHGHSDUWPHQWZKHUHKHJDYHWKHVWDWHPHQWWKDWZDV ODWHUKHDUGE\WKHMXU\DWWULDO 7KHSURVHFXWRUFDOOHG0DOORU\ DV DZLWQHVVEXW0DOORU\ DVVHUWHG KLV )LIWK $PHQGPHQW SULYLOHJH DJDLQVW VHOI LQFULPLQDWLRQDQGUHIXVHGWRWHVWLI\2YHUGHIHQVHFRXQVHOjV REMHFWLRQ WKH WULDO FRXUW WKHQ DGPLWWHG D WDSHUHFRUGHG FRQIHVVLRQJLYHQE\0DOORU\WRWKHSROLFHDIWHUKLVDUUHVW,Q &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ
WKDWFRQIHVVLRQ0DOORU\GHVFULEHGDGLIIHUHQWYHUVLRQRIWKH HVVHQWLDOO\DVNHGWKLV&RXUWWRGRDVPXFKSDUWLFXODUO\JLYHQ HYHQWVWKDWUHVXOWHGLQ%HQQHWWj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jVDSDUWPHQW 0DOORU\WROGWKHRIILFHUVWKDW%HQQHWWLQYLWHGERWK0DOORU\ DQG &DOYHUW WR SOD\ FDUGV ZLWK KLP WKH YHU\ QH[W HYHQLQJ )HEUXDU\ $IWHU SOD\LQJ FDUGV IRU DSSUR[LPDWHO\ ILIWHHQ PLQXWHV 0DOORU\ DQG &DOYHUW OHIW %HQQHWW WR JR WR 0DOORU\jV DSDUWPHQW ZKHUH WKH\ DUPHG WKHPVHOYHV ZLWK NQLYHVDQGDKDPPHUIRUWKHSXUSRVHRINLOOLQJ%HQQHWW7KH WZRPHQVRRQDIWHUUHWXUQHGWR%HQQHWWjVDSDUWPHQWZKHUH DFFRUGLQJ WR 0DOORU\WKH\ ERWK DWWDFNHG %HQQHWW &DOYHUW XVLQJWKHKDPPHUDQGDSDULQJW\SHNQLIH0DOORU\XVLQJD EXWFKHUNQLIHDQG%HQQHWWjVZDONLQJVWLFN0DOORU\VDLGWKDW DIWHUKHDQG&DOYHUWKDGEHDWHQDQGVWDEEHG%HQQHWWPXOWLSOH WLPHV&DOYHUWVODVKHG%HQQHWWjVWKURDW7KHWZRWKHQOHIW %HQQHWWjVDSDUWPHQW :KLOH &DOYHUW UHWXUQHG WR &KDOIDQWjV DSDUWPHQW WR FDOO D FDE0DOORU\UHWXUQHGWRKLVRZQDSDUWPHQWWRFKDQJHFORWKHV 0DOORU\DGPLWWHGWKDWZKLOHKHZDVWKHUHKHGLVSRVHGRIWKH PXUGHUZHDSRQV+HWKUHZWKHKDPPHURXWDZLQGRZLQKLV DSDUWPHQWDQGKHGURSSHGWKHNQLYHVLQWKHVWRUPVHZHULQ IURQWRIKLVDSDUWPHQWEXLOGLQJ 0DOORU\H[SODLQHGWKDWD WKLUG NQLIH ZKLFK ZDV IRXQG E\ SROLFH RIILFHUV LQVLGH 0DOORU\jV EXLOGLQJ RQ WKH JURXQG IORRU ZDV QRW XVHG RQ %HQQHWW 5HVSRQGLQJ WR &DOYHUWjV FDOO D 5RXQG WKH &ORFN &DE &RPSDQ\ FDEGULYHU SLFNHG XS ERWK &DOYHUW DQG 0DOORU\ WDNLQJWKHPWRDEDULQ%\HVYLOOH0DOORU\VDLGWKDWKHOHIW WKHEDUDERXWWKLUW\PLQXWHVODWHUWRJREDFNWRKLVDSDUWPHQW +HZDVDUUHVWHGWKHQH[WGD\DWKRPH &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ
WR FRQGXFW KDUPOHVV HUURU UHYLHZ ,QVWHDG UHVSRQGHQW %HQQHWWjVJUDQGVRQ%ULDQ%HQQHWWWHVWLILHGWKDWZKHQKH UHLWHUDWHV WKH ILQGLQJ RI WKH GLVWULFW FRXUW WKDW SULRU WR WKH YLVLWHG KLVJUDQGIDWKHUHDUO\RQWKHHYHQLQJRI)HEUXDU\ 6XSUHPH &RXUWjV GHFLVLRQ LQ /LOO\ mUHVSRQGHQWjV SULPDU\ KLVJUDQGIDWKHUZDVXSVHWQRWRQO\DERXWKDYLQJORVW DUJXPHQWZDVWKDW0DOORU\jVVWDWHPHQWZDVDGPLWWHGXQGHUD VRPHPRQH\EXWDOVRDERXW0DOORU\jVKDYLQJWKUHDWHQHGKLP ILUPO\URRWHGH[FHSWLRQWRWKHKHDUVD\UXOH7KHVLJQLILFDQFH ZLWKDEXWFKHUNQLIH7KHJUDQGVRQVDLGWKDWKHKDGNQRZQ RIDKDUPOHVVHUURUDUJXPHQWGLGQRWPDQLIHVWLWVHOIXQWLOWKH 0DOORU\ IRU WKUHH RU IRXU PRQWKV EHIRUH KLV JUDQGIDWKHUjV GHFLVLRQLQ/LOO\l7KLVUHDVRQLQJLVZKROO\LQDSSRVLWH$VDQ GHDWKEXWKDGQHYHUPHWRUVHHQ&DOYHUW LQLWLDO PDWWHU WKDW /LOO\ ZDV QRW \HW GHFLGHG DW WKH WLPH UHVSRQGHQWZDVSXWWLQJWRJHWKHUKLVEULHILVHQWLUHO\LUUHOHYDQW 'U3DWULFN)DUGDOWHVWLILHGWKDW%HQQHWWGLHGDVDUHVXOWRI 7KHGHFLVLRQLQ/LOO\ZDVEDVHGXSRQDILUPO\HVWDEOLVKHGOLQH PXOWLSOHVWDEZRXQGVWRKLVWUXQNFKHVWDQGDEGRPHQ+H RI 6XSUHPH &RXUW SUHFHGHQW WKH /LOO\ FRXUW ZDV FOHDU LQ GLGQRWGLHIURPWUDXPDWRWKHKHDG VWDWLQJWKDWWKH&RXUWjVKROGLQJZDVVLPSO\DORJLFDOH[WHQVLRQ RIWKH&RXUWjVSULRU&RQIURQWDWLRQ&ODXVHGHFLVLRQV6HH/LOO\ ,,7+(352&((',1*6 DW m7RGD\ZHPHUHO\UHDIILUP>%UXWRQ&UX]DQG*UD\@ DQGPDNHH[SOLFLWZKDWZDVKHUHWRIRUHLPSOLFLW $VWDWHPHQW 7KHMXU\IRXQG&DOYHUWJXLOW\DVFKDUJHG7KHWULDOFRXUW WKDWIDOOVLQWRWKHFDWHJRU\VXPPDUL]HGLQ/HHDFRQIHVVLRQ IROORZHGWKHMXU\jVUHFRPPHQGDWLRQDQGVHQWHQFHG&DOYHUWWR E\DQDFFRPSOLFHZKLFKLQFULPLQDWHVDFULPLQDOGHIHQGDQW OLIH LPSULVRQPHQW ZLWK SDUROH HOLJLELOLW\ DIWHU WKLUW\ IXOO GRHVQRWFRPHZLWKLQ D ILUPO\URRWHGKHDUVD\H[FHSWLRQl \HDUV IRU WKH DJJUDYDWHG PXUGHU 7KH MXGJH VHQWHQFHG )XUWKHUPRUH LI WKH UHVSRQGHQW H[SHFWHG WKDW KLV FKLHI &DOYHUWWRDFRQVHFXWLYHWHUPRIWHQWRWZHQW\ILYH\HDUVLQ DUJXPHQWWKDWQRWZLWKVWDQGLQJWKHKROGLQJVLQ*UD\&UX] SULVRQIRUWKHDJJUDYDWHGUREEHU\ /HHDQG%UXWRQDFRGHIHQGDQWjVRXWRIFRXUWVWDWHPHQWXVHG DVHYLGHQFHRIDGHIHQGDQWjVJXLOWIDOOVZLWKLQDILUPO\URRWHG &DOYHUW DSSHDOHG KLV FRQYLFWLRQ WR WKH *XHUQVH\ &RXQW\ KHDUVD\H[FHSWLRQZRXOGSUHYDLOKHFHUWDLQO\LVHQWLWOHGWR &RXUWRI$SSHDOVDUJXLQJDPRQJRWKHUWKLQJVWKDWWKHWULDO WKDWDSSURDFK+RZHYHURQFHWKLVDUJXPHQWIDLOVUHVSRQGHQW FRXUW HUUHG E\ DOORZLQJ 0DOORU\jV WDSHUHFRUGHG VWDWHPHQW PD\QRWWKHQFDOORQWKHGLVWULFWFRXUWWRHQWHUWDLQDGGLWLRQDO LQWR HYLGHQFH FRQWUDU\ WR WKH &RQIURQWDWLRQ &ODXVH RI WKH GHIHQVHV7KLVDWWHPSWWRVWUDWHJLFDOO\UHVHUYHGHIHQVHVXQWLO 6L[WK$PHQGPHQWWRWKH8QLWHG6WDWHV&RQVWLWXWLRQ7KH WKH\DUHQHFHVVDU\LVSUHFLVHO\ZK\FRXUWVKDYHKHOGWKDWWKH *XHUQVH\ &RXQW\ &RXUW RI $SSHDOV DIILUPHG &DOYHUWjV VWDWH PXVW DVVHUW KDUPOHVV HUURU DW WKH RXWVHW RU ZDLYH WKH FRQYLFWLRQ ILQGLQJ WKDW 0DOORU\jV VWDWHPHQW ZDV SURSHUO\ GHIHQVHHQWLUHO\6HHHJ*UDQEHUU\Y*UHHU86 DGPLWWHGDVDVWDWHPHQWDJDLQVWWKHGHFODUDQWjVLQWHUHVWXQGHU 7KLV &RXUW VKRXOG QRW DV D PDWWHU RI SROLF\ 5XOH E RIWKH2KLR5XOHVRI(YLGHQFH7KHDSSHOODWH HQFRXUDJHSRRUO\SODQQHGODZ\HULQJRULPSURSHUVWUDWHJ\QRU FRXUWDOVRIRXQGWKDW0DOORU\jVVWDWHPHQWmZDVFROODERUDWHG VKRXOG WKLV &RXUW WR GR WKH UHVSRQGHQWjV MRE IRU KLP E\ >VLF@ E\ RWKHU HYLGHQFH DQG ZLWQHVVHVl DQG ZDV WKHUHIRUH UDLVLQJ KDUPOHVV HUURU ZKHUH KH KDV IDLOHG WR GR VR WUXVWZRUWK\&DOYHUWjVDSSHDOIRUGLVFUHWLRQDU\UHYLHZLQWKH DSSURSULDWHO\ , ILQG LW WURXEOLQJ WKDW WKH UHVSRQGHQW KDV 2KLR6XSUHPH&RXUWZDVGLVPLVVHGRQ$SULO DVQRW LQYROYLQJDQ\VXEVWDQWLDOFRQVWLWXWLRQDOTXHVWLRQ
2Q)HEUXDU\ &DOYHUWILOHGDSHWLWLRQIRUZULWRI 7KH UHVSRQGHQW DOVR DUJXHV WKDW LWV ZDLYHU RI KDUPOHVV HUURU LVVXH KDEHDV FRUSXV XQGHU 86& LQ IHGHUDO GLVWULFW VKRXOG QRW EH FRQVLGHUHG E\ WKLV &RXUW DV LW LV RXWVLGH WKH VFRSH RI WKH FRXUW+HDJDLQUDLVHGWKH&RQIURQWDWLRQ&ODXVHLVVXH7KH 'LVWULFW &RXUWjV FHUWLILFDWH RI DSSHDODELOLW\ 7KLV DUJXPHQW FOHDUO\ ODFNV PHULW DV WKH SURSULHW\ RI FRQVLGHULQJ KDUPOHVV HUURU LV FHUWDLQO\ SDUW DQG GLVWULFW FRXUW IRXQG WKDW WKH WULDO FRXUWjV DGPLVVLRQ RI SDUFHO RI &DOYHUWjV &RQIURQWDWLRQ &ODXVH FODLP 0DOORU\jV VWDWHPHQW ZDV HUURU FRQVWLWXWLQJ D YLRODWLRQ RI &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ
&DOYHUWjV ULJKW WR FRQIURQW ZLWQHVVHV &DOYHUW ZDV mDUJXPHQWVUDLVHGLQSDVVLQJLQDIRRWQRWHDUHZDLYHGl 7KLV QRQHWKHOHVVGHQLHGUHOLHIEHFDXVHWKHGLVWULFWFRXUWIRXQGWKH FRQFOXVLRQ LV ORJLFDO JLYHQ WKDW D IRRWQRWH PHUHO\ HUURUWREHKDUPOHVV&DOYHUWILOHGDWLPHO\QRWLFHRIDSSHDO VXSSOHPHQWV DQ H[LVWLQJ DUJXPHQW LW LV QRW E\ GHILQLWLRQ DQG WKH GLVWULFW FRXUW JUDQWHG OHDYH WR SURFHHG LQ IRUPD XVHGWRSUHVHQWDQHZDUJXPHQWRULGHD6HH:HEVWHUjV7KLUG SDXSHULV DQG D FHUWLILFDWH RI DSSHDODELOLW\ RQ WKH 1HZ ,QWHUQDWLRQDO 'LFWLRQDU\ IRU WKH (QJOLVK /DQJXDJH &RQIURQWDWLRQ&ODXVHLVVXH 8QDEULGJHGDW 3KLOLS%DEFRFN*RYHHG GHILQLQJ DIRRWQRWHDVmDQRWHRIUHIHUHQFHH[SODQDWLRQRUFRPPHQW ,,,67$1'$5'2)5(9,(: SODFHGEHORZlDQGmDQXWWHUDQFHRUDFWLRQWKDWLVVXERUGLQDWHG RU DGGHG WR D ODUJHU VWDWHPHQW RU HYHQWl :KLOH WKH :HUHYLHZDGLVWULFWFRXUW VOHJDOFRQFOXVLRQVLQDKDEHDV UHVSRQGHQWSUHVXPDEO\ZRXOGQRWH[SHFWDFRXUWWRFRQVLGHU SURFHHGLQJGHQRYRDQGLWVIDFWXDOILQGLQJVIRUFOHDUHUURU RQWKHPHULWVDGHIHQGDQWjVIRRWQRWHVFRQWDLQLQJVLPSOLVWLF /XFDVY2 'HD )G WK&LU %HFDXVH OHJDOFRQFOXVLRQVVRWRRPXVWKHH[SHFWWKDWVLPLODUO\VWDWHG &DOYHUWjVKDEHDVSHWLWLRQZDVILOHGDIWHU$SULO RXU DUJXPHQWV E\ WKH UHVSRQGHQW ZLOO OLNHZLVH EH FRQVLGHUHG UHYLHZLVJRYHUQHGE\WKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK ZDLYHG 3HQDOW\$FWRI m$('3$l 3XE/1R 6WDW $VDPHQGHG$('3$SURYLGHVLQ ,WLVZRUWKQRWLQJWKDWVRPHIHGHUDODSSHOODWHFRXUWVKDYH UHOHYDQWSDUWWKDWDIHGHUDOFRXUWPD\QRWJUDQWDSHWLWLRQIRU KHOG WKDW HYHQ ZKHUH WKH VWDWH ZDLYHV WKH KDUPOHVV HUURU ZULWRIKDEHDVFRUSXVXQOHVVWKHVWDWHFRXUWDGMXGLFDWLRQRIWKH GHIHQVH D UHYLHZLQJ FRXUW KDV OLPLWHG GLVFUHWLRQ WR FODLPmUHVXOWHGLQDGHFLVLRQWKDWZDVFRQWUDU\WRRULQYROYHG QRQHWKHOHVVFRQGXFWKDUPOHVVHUURUUHYLHZ6HH8QLWHG6WDWHV DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ HVWDEOLVKHG )HGHUDO Y*LRYDQQHWWL )G WK&LU KROGLQJ ODZ DV GHWHUPLQHG E\ WKH 6XSUHPH &RXUW RI WKH 8QLWHG WKDW D FRXUW FDQ GHWHUPLQH LI LW SRVVHVVHV WKH UHTXLVLWH 6WDWHVl86& G GLVFUHWLRQ WR FRQVLGHU KDUPOHVV HUURU E\ FRQVLGHULQJ mWKH OHQJWKDQGFRPSOH[LW\RIWKHUHFRUGZKHWKHUKDUPOHVVQHVVRI ,Q:LOOLDPVY7D\ORU 866&W WKH HUURU RU HUURUV LV FHUWDLQ RU GHEDWDEOH DQG ZKHWKHU WKH / (G G WKH 6XSUHPH &RXUW H[SODLQHG WKDW D UHYHUVDOZLOOUHVXOWLQSURWUDFWHGFRVWO\DQGXOWLPDWHO\IXWLOH VWDWH FRXUW DFWV mFRQWUDU\ WRl FOHDUO\ HVWDEOLVKHG 6XSUHPH SURFHHGLQJVLQWKHGLVWULFWFRXUWl +RUVOH\Y$ODEDPD &RXUWSUHFHGHQWLILWmDUULYHVDWDFRQFOXVLRQRSSRVLWHWRWKDW )G Q WK &LU 8QLWHG 6WDWHV Y UHDFKHGE\WKLV&RXUWRQDTXHVWLRQRIODZlRULILWmGHFLGHV /DQJVWRQ )G Q WK&LU /XINLQVY DFDVHGLIIHUHQWO\WKDQWKLV&RXUWKDVRQDVHWRIPDWHULDOO\ /HDSOH\ )G WK &LU 7KHVH LQGLVWLQJXLVKDEOHIDFWVl:LOOLDPV 86DW sXVWLFH GHFLVLRQVDUHRIFRXUVHPHUHO\SHUVXDVLYHDXWKRULW\DQGDUH 2j&RQQRUjV 3DUW ,, PDMRULW\ RSLQLRQ 7KH &RXUW DOVR QRWELQGLQJRQWKLV&RXUW+RZHYHUHYHQLIWKLVSDQHOZHUH H[SODLQHG WKDW D VWDWH FRXUWjV GHFLVLRQ LQYROYHV DQ WRVXEVFULEHWRWKLVDQDO\VLVZHZRXOGEHIRUFHGWRFRQFOXGH mXQUHDVRQDEOHDSSOLFDWLRQlRIFOHDUO\HVWDEOLVKHGIHGHUDOODZ WKDWZHDUHZLWKRXWWKHGLVFUHWLRQWRFRQVLGHUKDUPOHVVHUURU LILWHLWKHU FRUUHFWO\LGHQWLILHVWKHJRYHUQLQJOHJDOSULQFLSOH DV WKH HUURU KHUH LV QRW DV UHTXLUHG E\ *LRYDQHWWL SODLQO\ IURPWKH6XSUHPH&RXUWjVGHFLVLRQVEXWWKHQXQUHDVRQDEO\ KDUPOHVV7KLVGHIHQVHZDVWKXVLPSURSHUO\FRQVLGHUHGE\ DSSOLHVWKDWSULQFLSOHWRWKHIDFWVRIWKHSULVRQHUjVFDVHRU WKHGLVWULFWFRXUWDQGWKHPDMRULW\RSLQLRQ XQUHDVRQDEO\H[WHQGVRUXQUHDVRQDEO\GHFOLQHVWRH[WHQG D FOHDUO\ HVWDEOLVKHG OHJDO SULQFLSOH WR D QHZ FRQWH[W 7KH UHVSRQGHQW GRHV QRW DUJXH KHUH WKDW XQGHU WKH 1RWDEO\ DQ mXQUHDVRQDEOHl DSSOLFDWLRQ LV DQ mREMHFWLYHO\ *LRYDQHWWLOLQHRIFDVHVWKLVFRXUWPD\H[HUFLVHLWVGLVFUHWLRQ XQUHDVRQDEOHlDSSOLFDWLRQ:LOOLDPV 86DW &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ
PXVW SUHVHQW WKHLU FDUGV DW WKH RXWVHW DV PDWWHU RI ,93(7,7,21(5j66,;7+$0(1'0(17&/$,0 IXQGDPHQWDO IDLUQHVV DQG MXGLFLDO HFRQRP\ KLGGHQ KDQGV VKRXOGQRWEHHQFRXUDJHG $ +HUHLQLWV5HWXUQRI:ULWWKHUHVSRQGHQWIDLOHGWRUDLVH 7KH 6L[WK $PHQGPHQWjV &RQIURQWDWLRQ &ODXVH SURYLGHV WKHKDUPOHVVHUURUGHIHQVH,QDVLQJOHIRRWQRWHZLWKRXWDQ\ WKDWm>L@QDOOFULPLQDOSURVHFXWLRQVWKHDFFXVHGVKDOOHQMR\ UHFLWDWLRQRIOHJDOVWDQGDUGVRUOHJDOFLWDWLRQVWKHUHVSRQGHQW WKHULJKWWREHFRQIURQWHGZLWKWKHZLWQHVVHVDJDLQVWKLPl PHQWLRQHGWKDWWKHmDGPLVVLRQRI>0DOORU\jVVWDWHPHQW@LI 86&RQVWDPHQG9,7KH6XSUHPH&RXUWKDVORQJKHOG HUURUDWDOOZDVKDUPOHVVHUURULQOLJKWRIWKHRWKHUHYLGHQFH WKDWDQRQWHVWLI\LQJFRGHIHQGDQWjVVWDWHPHQWVWKDWLPSOLFDWH DGPLWWHG DJDLQVW &DOYHUWl ,Q WKH VDPH IRRWQRWH WKH DGHIHQGDQWDUHSUHVXPSWLYHO\XQUHOLDEOHDQGWKHLUDGPLVVLRQ UHVSRQGHQWUHFLWHGWKUHHPRVWO\XQSHUVXDVLYHIDFWVWKDWWKH YLRODWHVWKH&RQIURQWDWLRQ&ODXVH'RXJODVY$ODEDPD SURVHFXWLRQSUHVHQWHGDWWULDO7KLVIRRWQRWHZLWKRXWDQ\ 8 6 6 &W / (G G 7R IXUWKHUDQDO\VLVGRHVQRWDPRXQWWRDQDVVHUWLRQRIKDUPOHVV RYHUFRPH WKH SUHVXPSWLRQ RI XQUHOLDELOLW\ D SURVHFXWRU HUURUIRUWKHSXUSRVHVRIZDLYHU,QGHHGLWLVJHQHUDOO\KHOG VHHNLQJDGPLVVLRQRIDQRQWHVWLI\LQJDFFRPSOLFHjVVWDWHPHQWV WKDWDQDUJXPHQWLVQRWUDLVHGZKHUHLWLVVLPSO\QRWHGLQD WKDW LQFULPLQDWH D GHIHQGDQW PXVW GHPRQVWUDWH WKDW WKH IRRWQRWH DEVHQW DQ\ UHFLWDWLRQ RI OHJDO VWDQGDUGV RU OHJDO VWDWHPHQWV EHDU DGHTXDWH mLQGLFLD RI UHOLDELOLW\l 2KLR Y DXWKRULW\6HH1DWjO)RUHLJQ7UDGH&RXQFLOY1DWVLRV 5REHUWV866&W/(GG )G VW&LU m:HKDYHUHSHDWHGO\KHOGWKDW $VH[SODLQHGE\WKH6XSUHPH&RXUW DUJXPHQWVUDLVHGLQDIRRWQRWHRULQDSHUIXQFWRU\PDQQHUDUH ZDLYHGl 1RUWRQY6DP V&OXE)G G&LU 5HOLDELOLW\FDQEHLQIHUUHGZLWKRXWPRUHLQDFDVHZKHUH m>:@H KDYH KHOG WKDW DQ DUJXPHQW PDGH RQO\ LQ D WKH HYLGHQFH IDOOV ZLWKLQ D ILUPO\ URRWHG KHDUVD\ IRRWQRWH>LV@LQDGHTXDWHO\UDLVHGIRUDSSHOODWHUHYLHZl sRKQ H[FHSWLRQ ,Q RWKHU FDVHV WKH HYLGHQFH PXVW EH :\HWK %UR/WGY&,*1$,QWHUQ&RUS )G H[FOXGHG DW OHDVW DEVHQW D VKRZLQJ RI SDUWLFXODUL]HG G &LU H[SODLQLQJ WKDW mDUJXPHQWV UDLVHG LQ JXDUDQWHHVRIWUXVWZRUWKLQHVV SDVVLQJ VXFKDVLQDIRRWQRWH EXWQRWVTXDUHO\DUJXHGDUH FRQVLGHUHG ZDLYHGl 86 'HSW RI 1DY\ Y )HG /DERU 2KLRY5REHUWV86DW 5HODWLRQV $XWK )G WK &LU ,Q/HHY,OOLQRLV866&W /(G G WKH6XSUHPH&RXUWFRQVLGHUHGWKHFDVHRID ZRPDQ0LOOLH/HH m/HHl ZKRLQDEHQFKWULDOZDVIRXQG 1RWDEO\ WKH UHVSRQGHQW DOVR GLG QRW UDLVH KDUPOHVV HUURU EHIRUH WKH JXLOW\RIPXUGHUE\DWULDOMXGJHZKRH[SUHVVO\UHOLHGRQD *XHUQVH\ &RXQW\ &RXUW RI $SSHDOV DQG E\ H[WHQVLRQ WKH 2KLR 6XSUHPH &RXUW XSRQ GLUHFW DSSHDO QRQWHVWLI\LQJ FRGHIHQGDQWjV FRQIHVVLRQ LPSOLFDWLQJ /HH :KHQTXHVWLRQHGE\SROLFHDIWHUKHUDUUHVW/HHVDLGWKDWVKH 7KHVH ZHUH WKH IDFW WKDW &DOYHUW KDG %HQQHWWjV EORRG RQ KLV DQGKHUER\IULHQG(GZLQ7KRPDV m7KRPDVl ZHUHDUJXLQJ FORWKHV DQG ILQJHUQDLOV WKDW &DOYHUW XWWHUHG WR 0DOORU\ LQ WKH SUHVHQFH LQWKHNLWFKHQRIWKHDSDUWPHQWWKDW/HHVKDUHGZLWKKHUDXQW RI D FDE GULYHU mZH VKRZHG KLP l DQG &DOYHUW WROG &U\VWDO +DUULV WKDW ZKHQDZRPDQZKRZDVYLVLWLQJWKHDXQWHQWHUHGWKHNLWFKHQ KH KLW DQ $IULFDQ$PHULFDQ PDQ ZLWK D KDWFKHW DQG GLG QRW NQRZ LI KH DQGFKDVWLVHG/HHDQG7KRPDVIRUDUJXLQJ/HHWROGSROLFH NLOOHG KLP &DOYHUW KDV FRQVLVWHQWO\ VWDWHG WKDW KH ZDV SUHVHQW LQ %HQQHWWjV WKDW 7KRPDVVQDSSHGVWDEELQJWKHZRPDQLQWKHEDFNDV DSDUWPHQW ZKHQ KH ZDV NLOOHG DQG ZDV FRYHUHG LQ %HQQHWWjV EORRG ZKHQ VKH WXUQHG WR OHDYH WKH NLWFKHQ /HH WKHQ UDQ WR WKH KH ZDV DUUHVWHG &U\VWDO +DUULV DOVR WHVWLILHG WKDW VKH GLG QRW WKLQN WKDW &DOYHUW ZDV VHULRXV ZKHQ KH VDLG WKDW KH KLW VRPHRQH ZLWK D KDWFKHW DW EHGURRP ZKHUH VKH ZDV WKUHDWHQHG E\ KHU DQJU\ NQLIH DQ\ UDWH %HQQHWW ZDV QRW $IULFDQ$PHULFDQ ZLHOGLQJDXQW DQG /HHUHVSRQGHGWRKHUDXQWjVWKUHDWVE\ &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ
UXVKLQJEDFNWRWKHNLWFKHQJUDEELQJDEXWFKHUNQLIHWKHQ UHVSRQVLELOLW\ RI HQVXULQJ WKDW DOO FODLPV LQ VXSSRUW RI D UHWXUQLQJWRWKHEHGURRPZKHUHVKHUHSHDWHGO\VWDEEHGKHU SHWLWLRQIRUZULWRIKDEHDVFRUSXVDUHWLPHO\UDLVHGVRWRR DXQW GRHV WKH ZDUGHQ EHDU WKH UHVSRQVLELOLW\ RI HQVXULQJ DOO GHIHQVHV LQFOXGLQJ KDUPOHVV HUURU DUH WLPHO\ UDLVHG 6HH :KLOH 7KRPDV FRUURERUDWHG PDQ\ RI WKH SDUWLFXODUV RI +LWFKFRFNY'XJJHU86 m5HVSRQGHQW /HHjV FRQIHVVLRQ KH SURYLGHG RQH VLJQLILFDQW GHWDLO LQ KLV KDVPDGHQRDWWHPSWWRDUJXHWKDWWKLVHUURUZDVKDUPOHVV FRQIHVVLRQWKDWZDVFRQVSLFXRXVO\DEVHQWIURP/HHjVDFFRXQW >L@QWKHDEVHQFHRIVXFKDVKRZLQJRXUFDVHVKROG WKDWWKH RI WKH PXUGHUV KH VDLG WKDW WKH PXUGHUV ZHUH SODQQHG H[FOXVLRQ RI PLWLJDWLQJ HYLGHQFH RI WKH VRUW DW LVVXH KHUH $FFRUGLQJWR7KRPDVKHDQG/HHIRUPXODWHGDSUHFRQFHLYHG UHQGHUVWKHGHDWKVHQWHQFHLQYDOLGl 8QLWHG6WDWHVY9DOOHMR SODQ WR PXUGHU /HHjV DXQW LQ RUGHU WR VWRS WKH DXQWjV )G WK&LU m7KH*RYHUQPHQWGRHV KDUDVVPHQW RI /HH 7KRPDV H[SODLQHG WKDW ZKHQ WKH QRWDUJXHWKDWWKLVHUURUZDVKDUPOHVVDQGWKXVZDLYHVWKDW SUHVHQFHRIWKHDXQWjVIULHQGWKUHDWHQHGWRGLVUXSWWKHLUSODQV DUJXPHQWl +ROODQGY0F*LQQLV )G WK WRNLOOWKHDXQWKHDQG/HHGHYLVHGDSODQWRNLOOWKHIULHQG &LU m6LQFH ,OOLQRLV GLG QRW DUJXH KDUPOHVV HUURU LQ DOVR HLWKHU RI LWV EULHIV LW VXEPLWWHG >LW@ LQ D 5XOH M ILOLQJ VKRUWO\DIWHUDUJXPHQW7KHVWDWH VEHODWHGDWWHPSWWRLQMHFW ,Q ILQGLQJ /HH JXLOW\ RI WKH WZR PXUGHUV WKH WULDO FRXUW >WKH KDUPOHVV HUURU GHIHQVH@ DW RUDO DUJXPHQW LV ERWK H[SUHVVO\UHOLHGRQWKHYHUVLRQRIHYHQWVGHVFULEHGE\7KRPDV GLVWXUELQJ DQG XQDYDLOLQJl 6HH DOVR /LHEPDQ +HUW] LQ KLV SRVWDUUHVW FRQIHVVLRQ 2Q DSSHDO /HH DUJXHG )HGHUDO+DEHDV&RUSXV3UDFWLFHDQG3URFHGXUHD G XQVXFFHVVIXOO\ WKDW KHU &RQIURQWDWLRQ &ODXVH ULJKWV ZHUH HG m/LNHRWKHUGHIHQVHVWRKDEHDVFRUSXVUHOLHIWKH YLRODWHG E\ WKH WULDO FRXUWjV FRQVLGHUDWLRQ RI 7KRPDVj mKDUPOHVV HUURUl REVWDFOH GRHV QRW DULVH XQOHVV WKH VWDWH FRQIHVVLRQ DJDLQVW KHU 7KH 6XSUHPH &RXUW UHYHUVHG WKH DVVHUWV LW WKH VWDWHjV IDLOXUH WR GR VR LQ D WLPHO\ DQG DSSHOODWH FRXUWjV MXGJPHQW DIILUPLQJ /HHjV FRQYLFWLRQV XQHTXLYRFDOIDVKLRQZDLYHVWKHGHIHQVHl ,QGHHGIRUHYLGHQW KROGLQJ mWKDW 7KRPDVj VWDWHPHQW DV WKH FRQIHVVLRQ RI DQ UHDVRQVm>S@URFHGXUDOUXOHVDSSO\WRWKHJRYHUQPHQWDVZHOO DFFRPSOLFHZDVSUHVXPSWLYHO\XQUHOLDEOHDQGWKDWLWGLGQRW DVWRGHIHQGDQWVl:LOVRQY2j/HDU\ )G WK EHDUVXIILFLHQWLQGHSHQGHQWµLQGLFLDRIUHOLDELOLW\jWRRYHUFRPH &LU sXVWDVDGHIHQGDQWPD\QRWmVDYHlFODLPVIRU WKDW SUHVXPSWLRQl /HH 86 DW 7KH &RXUW VWUDWHJLFSXUSRVHVWKHVWDWHPD\QRWSODFHWKHKDUPOHVVHUURU H[SODLQHG GHIHQVH LQ DQ DUVHQDO IRU VDIHNHHSLQJ LQ WKH HYHQW WKDW LWV VXEVWDQWLYHFRQVWLWXWLRQDODUJXPHQWVIDLO6HH BBBBBBBBBBBBBBBBBBBBB 6L[WK $PHQGPHQW ,Q RWKHU ZRUGV ZKHQ WKH GLVFUHSDQFLHV EHWZHHQ WKH VWDWHPHQWV DUH QRW &21&855(1&( LQVLJQLILFDQW WKH FRGHIHQGDQW V FRQIHVVLRQ PD\ QRW EH BBBBBBBBBBBBBBBBBBBBB DGPLWWHG 5 *8< &2/( s5 &LUFXLW sXGJH FRQFXUULQJ LQ WKH /HH86DW PDMRULW\ RSLQLRQ :KLOH , FRQFXU LQ WKH MXGJPHQW RI WKH PDMRULW\,ZULWHVHSDUDWHO\EHFDXVH,ILQGSUREOHPDWLFWKHIDFW 7KH6XSUHPH&RXUWLQ/HHGLGQRWH[SUHVVO\GHFLGHZKHWKHU WKDWWKHPDMRULW\KDVFRQVLGHUHGWKHKDUPOHVVHUURUGHIHQVH 7KRPDVj FRQIHVVLRQ IHOO ZLWKLQ D ILUPO\ URRWHG KHDUVD\ ZKHUHLWKDVQRWEHHQSURSHUO\UDLVHGE\WKHUHVSRQGHQW H[FHSWLRQ,QGHHGQRWXQWLO GLGWKH&RXUWVSHFLILFDOO\ KROG WKDW m>D@ VWDWHPHQWWKDW IDOOV LQWR WKH FDWHJRU\ , DJUHH ZLWK WKH PDMRULW\ WKDW WKH VWDWH PD\ LQWURGXFH VXPPDUL]HGLQ/HHµDFRQIHVVLRQE\DQDFFRPSOLFHZKLFK VWDWHPHQWVFRQVLGHUHGKHDUVD\DVHYLGHQFHRIDGHIHQGDQWjV LQFULPLQDWHVDFULPLQDOGHIHQGDQWjGRHVQRWFRPHZLWKLQD FXOSDELOLW\RQO\ZKHUH WKHVWDWHPHQWVIDOOZLWKLQDILUPO\ ILUPO\URRWHGKHDUVD\H[FHSWLRQl/LOO\Y9LUJLQLD86 URRWHGH[FHSWLRQRU WKHVWDWHPHQWVFRQWDLQSDUWLFXODUL]HG 6&W/(GG TXRWLQJ JXDUDQWHHV RI WUXVWZRUWKLQHVV VXFK WKDW DGYHUVDULDO WHVWLQJ /HH86DWQ FLWDWLRQRPLWWHG 7KH&RXUWPDGH ZRXOG EH H[SHFWHG WR DGG OLWWOH LI DQ\WKLQJ 6HH 2KLR Y FOHDU KRZHYHU WKDW LW ZDV PHUHO\ PDNLQJ H[SOLFLW LQ/LOO\ 5REHUWV86 6LPLODUO\,GRQRWGLVSXWH ZKDWZDVLPSOLFLWLQHDUOLHUFDVHV WKDWWKH6XSUHPH&RXUWjV&RQIURQWDWLRQ&ODXVHMXULVSUXGHQFH GLFWDWHV WKDW DV D PDWWHU RI FOHDUO\ HVWDEOLVKHG ODZ DQ 2XUKROGLQJVLQ%UXWRQY8QLWHG6WDWHV 86 XQDYDLODEOH FRGHIHQGDQWjV VWDWHPHQWV UHJDUGLQJ WKH 6&W/(GG &UX]Y1HZ FXOSDELOLW\RIWKHGHIHQGDQWLQWURGXFHGE\WKHSURVHFXWLRQWR VHOILQFXOSDWRU\ VWDWHPHQWV DUH LQDGPLVVLEOH DJDLQVW HPSKDVL]HG WKDW FRQIHVVLRQV ZKLFK H[SUHVVO\ LPSOLFDWH D FULPLQDO GHIHQGDQWV 7RGD\ ZH PHUHO\ UHDIILUP WKHVH GHIHQGDQWDUHmSRZHUIXOO\LQFULPLQDWLQJl,QGHHGVSHFLILF KROGLQJVDQGPDNHH[SOLFLWZKDWZDVKHUHWRIRUHLPSOLFLW WHVWLPRQ\WKDWmWKHGHIHQGDQWKHOSHGPHSODQDQGFRPPLWWKH FULPHl LV PXFK PRUH YLYLG WKDQ DQ\ HYLGHQFH WKDW LV /LOO\86DWQ LQFULPLQDWLQJRQO\ZKHQWKHMXU\PDNHVDQLQIHUHQFH,QWKLV FDVHZLWKRXW0DOORU\jVVWDWHPHQWWKHMXU\ZRXOGKDYHKDGWR 7KHGHIHQGDQWLQ/LOO\%HQMDPLQ/HH/LOO\ m/LOO\l ZDV LQIHU &DOYHUWjV JXLOW :LWK WKH DGPLVVLRQ RI 0DOORU\jV FRQYLFWHG RI PXUGHU DQG RWKHU FULPHV DIWHU WKH WULDO FRXUW VWDWHPHQWWKHMXU\KDGQRQHHGWRHQJDJHLQDQ\LQIHUHQFHVDW DGPLWWHG VWDWHPHQWV PDGH E\ DQ DFFRPSOLFH XQGHU SROLFH DOO6HH%XOOVYsRQHV1R :/DW TXHVWLRQLQJ7KHDFFRPSOLFHZKRDWWULDOLQYRNHGKLV)LIWK WK&LU1RY KROGLQJWKDWDGPLVVLRQRIQRQ $PHQGPHQWSULYLOHJHDJDLQVWVHOILQFULPLQDWLRQDGPLWWHGWR WHVWLI\LQJ FRGHIHQGDQW V VWDWHPHQW ZKLFK SURYLGHG GLUHFW SROLFHWKDWKHZDVDSDUWLFLSDQWLQWKHFULPHVSUHHWKDWHQGHG HYLGHQFHWKHRQO\GLUHFWHYLGHQFHRIPDOLFHKDGVXEVWDQWLDO ZLWKWKHPXUGHURIDPDQEXWKHGHQLHGUHVSRQVLELOLW\IRUWKH DQGLQMXULRXVHIIHFWLQGHWHUPLQLQJMXU\ VYHUGLFW PXUGHU+HVDLGWKDW/LOO\VKRWWKHYLFWLP7KHWULDOFRXUW DGPLWWHGWKHDFFRPSOLFHjVVWDWHPHQWVDVGHFODUDWLRQVRIDQ ,QWKLVFDVH0DOORU\jVVWDWHPHQWPD\KDYHEHHQSUHFLVHO\ XQDYDLODEOHZLWQHVVDJDLQVWSHQDOLQWHUHVWRYHUUXOLQJ/LOO\jV WKHHYLGHQFHWKDWFRQYLQFHGWKHMXU\WKDW&DOYHUWmSXUSRVHO\ REMHFWLRQVWKDWDGPLVVLRQRIWKHVWDWHPHQWVZRXOGYLRODWHKLV DQGZLWKSULRUFDOFXODWLRQDQGGHVLJQlFDXVHGWKHGHDWKRI &RQIURQWDWLRQ&ODXVHULJKWV,QDIILUPLQJ/LOO\jVFRQYLFWLRQV %HQQHWW:HPXVWFRQFOXGHWKHUHIRUHWKDWWKHDGPLVVLRQRI WKH 9LUJLQLD 6XSUHPH &RXUW IRXQG WKDW WKH &RQIURQWDWLRQ 0DOORU\jVVWDWHPHQWKDGDVXEVWDQWLDODQGLQMXULRXVLQIOXHQFH &ODXVHZDVVDWLVILHGEHFDXVHWKHDFFRPSOLFHjVVWDWHPHQWVIHOO LQ GHWHUPLQLQJ WKH MXU\jV YHUGLFW $FFRUGLQJO\ ZH ZLWKLQ D ILUPO\ URRWHG H[FHSWLRQ WR WKH KHDUVD\ UXOH XQGHU 5(9(56( WKH GLVWULFW FRXUWjV GHQLDO RI KDEHDV UHOLHI DQG 9LUJLQLDODZEHFDXVHWKHDFFRPSOLFHLPSOLFDWHGKLPVHOIDVD 5(0$1' ZLWK GLUHFWLRQV WR LVVXH D FRQGLWLRQDO ZULW RI SDUWLFLSDQWLQQXPHURXVFULPHVDQGEHFDXVHWKHVWDWHPHQWV KDEHDVFRUSXVUHOHDVLQJ&DOYHUWIURPFXVWRG\XQOHVVKHLV ZHUHLQGHSHQGHQWO\FRUURERUDWHGE\RWKHUHYLGHQFHDWWULDO UHWULHGZLWKLQDUHDVRQDEOHSHULRGRIWLPHWREHGHWHUPLQHGE\ 7KH 6XSUHPH &RXUW UHYHUVHG UHMHFWLQJ DOO EDVHV IRU WKH WKHGLVWULFWFRXUW 9LUJLQLD6XSUHPH&RXUWjVGHFLVLRQ 7KH /LOO\ &RXUW ILUVW VDLG WKDW LW ZDV LUUHOHYDQW WKDW DOO VWDWHPHQWV DJDLQVW SHQDO LQWHUHVW RI DQ XQDYDLODEOH ZLWQHVV ZHUHWUHDWHGDVILUPO\URRWHGH[FHSWLRQVWRWKHKHDUVD\UXOH XQGHU9LUJLQLDODZ([SODLQLQJWKDWWKHTXHVWLRQZKHWKHU VWDWHPHQWVIDOOZLWKLQDILUPO\URRWHGKHDUVD\H[FHSWLRQIRU &RQIURQWDWLRQ&ODXVHSXUSRVHVLVDTXHVWLRQRIIHGHUDOODZ WKH&RXUWKHOG m7KHGHFLVLYHIDFWZKLFKZHPDNHH[SOLFLW WRGD\ LV WKDW DFFRPSOLFHVj FRQIHVVLRQV WKDW LQFXOSDWH D FULPLQDOGHIHQGDQWDUHQRWZLWKLQDILUPO\URRWHGH[FHSWLRQWR WKH KHDUVD\ UXOH DV WKDW FRQFHSW KDV EHHQ GHILQHG LQ RXU &RQIURQWDWLRQ&ODXVHMXULVSUXGHQFHl/LOO\86DW 7KH &RXUW UHFRJQL]HG RI FRXUVH WKDW HYHQ WKRXJK WKH FRQIHVVLRQLQ/LOO\GLGQRWIDOOZLWKLQDILUPO\URRWHGKHDUVD\ &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ &DOYHUWDQG0DOORU\WRRNDFDEWRDEDUQRWORQJDIWHU&DOYHUW H[FHSWLRQ WKH FRQIHVVLRQ PLJKW QRQHWKHOHVV KDYH EHHQ OHIW%HQQHWWjVDSDUWPHQW WKDW&DOYHUWUHWXUQHGWR%HQQHWWjV DGPLVVLEOH LI LW KDG EHHQ VXSSRUWHG E\ D VKRZLQJ RI QHLJKERUjV DSDUWPHQW WKH QH[W PRUQLQJ VWLOO GUHVVHG LQ WKH SDUWLFXODUL]HGJXDUDQWHHVRIWUXVWZRUWKLQHVV FORWKHVKHZDVZHDULQJWKHQLJKWEHIRUH WKDWKLVFORWKHVZHUH VWDLQHGZLWK%HQQHWWjVEORRG WKDWWUDFHVRI%HQQHWWjVEORRG 7KH 6XSUHPH &RXUW ZHQW RQ KRZHYHU WR GLVFUHGLW WKH W\SHZHUHIRXQGLQQDLOVFUDSLQJVIURP&DOYHUWjVOHIWKDQG SXUSRUWHGJXDUDQWHHVRIWUXVWZRUWKLQHVVXSRQZKLFKWKHVWDWH DQGWKDW&DOYHUWZDVFRRSHUDWLYHZKHQSROLFHRIILFHUVIRXQG FRXUWVUHOLHGLQ/LOO\jVFDVH7KH&RXUWIRUH[DPSOHUHMHFWHG KLPLQ%HQQHWWjVQHLJKERUjVDSDUWPHQWWKHPRUQLQJDIWHUWKH WKH QRWLRQ WKDW FRUURERUDWLYH HYLGHQFH SURYLGHV WKH PXUGHU,QDGGLWLRQWKHMXU\DSSDUHQWO\KHDUGIURPWKHFDE mSDUWLFXODUL]HG JXDUDQWHHV RI WUXVWZRUWKLQHVVl QHHGHG WR GULYHUWKDW&DOYHUWZKRZDVLQJRRGVSLULWVGXULQJWKHFDE VXSSRUWDGPLVVLRQRIDQDFFRPSOLFHjVFRQIHVVLRQ&LWLQJLWV ULGHWRWKHEDUVDLGWR0DOORU\ m:HVKRZHGKLPl7KHMXU\ GHFLVLRQLQ,GDKRY:ULJKW 866&W DOVRDSSDUHQWO\KHDUGWKDWODWHRQWKHHYHQLQJRIWKHPXUGHU /(GG WKH&RXUWQRWHGWKDWLWKDG &DOYHUWWROGDIULHQGWKDWKHKDGKLWDEODFNPDQ %HQQHWWZDV VTXDUHO\UHMHFWHGWKHDUJXPHQWWKDWHYLGHQFHFRUURERUDWLQJWKH ZKLWH ZLWKDKDWFKHWEXWGLGQRWNQRZLIWKHPDQZDVGHDG WUXWKRIDKHDUVD\VWDWHPHQWPD\VXSSRUWDILQGLQJWKDWWKH 7KHMXU\GLGQRWKHDUIURPDQ\RQHEXW0DOORU\WKDW&DOYHUW VWDWHPHQW EHDUV mSDUWLFXODUL]HG JXDUDQWHHV RI FDXVHGWKHGHDWKRI%HQQHWWZLWKSULRUFDOFXODWLRQDQGGHVLJQ WUXVWZRUWKLQHVVl/LOO\86DW ,Q:ULJKW 86DWWKH&RXUWKDGVDLGWKDWm>W@REHDGPLVVLEOHXQGHU 'HIHQVHFRXQVHODUJXHGWRWKHMXU\WKDW0DOORU\VHYHUHO\ WKH&RQIURQWDWLRQ&ODXVHKHDUVD\HYLGHQFHXVHGWRFRQYLFWD ZRXQGHG %HQQHWW LQ &DOYHUWjV SUHVHQFH OHDYLQJ WUDFHV RI GHIHQGDQWPXVWSRVVHVVLQGLFLDRIUHOLDELOLW\E\YLUWXHRILWV EORRG RQ KLV FORWKHV DQG KLV KDQG WKDW &DOYHUW mJRW RXWl LQKHUHQWWUXVWZRUWKLQHVVQRWE\UHIHUHQFHWRRWKHUHYLGHQFHDW ZKLOH%HQQHWWZDVVWLOODOLYH WKDW0DOORU\OHIWWKHEDUHDUO\ WULDOl DQG ODWHU GUHVVHG LQ KLV SDMDPDV UHWXUQHG WR %HQQHWWjV DSDUWPHQWEURNHRSHQWKHZLQGRZWRXQORFNWKHGRRUDQG 7KH 6XSUHPH &RXUW DOVR UHMHFWHG WKH QRWLRQ WKDW D VHOI ILQLVKHGRII%HQQHWWE\VWDEELQJKLPUHSHDWHGO\ZLWKDNQLIH LQFXOSDWRU\ FRQIHVVLRQ LV WUXVWZRUWK\ 4XRWLQJ LWV +DG 0DOORU\jV VWDWHPHQW QRW EHHQ DGPLWWHG WKH HYLGHQFH GHFLVLRQLQ:LOOLDPVRQY8QLWHG6WDWHV86 DJDLQVW&DOYHUWZDVFLUFXPVWDQWLDODQGQRWLQFRQVLVWHQWZLWK 6&W /(GG KROGLQJZLWKRXW &DOYHUWjV DUJXPHQW WKDW KH ZDV SUHVHQW ZKHQ %HQQHWW ZDV UHDFKLQJWKH&RQIURQWDWLRQ&ODXVHLVVXHWKDWDQDFFRPSOLFHjV LQLWLDOO\ZRXQGHGEXWZDVQRWSUHVHQWZKHQ%HQQHWWZDVODWHU VWDWHPHQW DJDLQVW KLV RZQ SHQDO LQWHUHVW ZDV LQDGPLVVLEOH NLOOHG +DG 0DOORU\jV VWDWHPHQW QRW EHHQ DGPLWWHG WKH DJDLQVWWKHGHIHQGDQWXQGHUWKH)HGHUDO5XOHVRI(YLGHQFH SURVHFXWRU KDG QR GLUHFW HYLGHQFH WKDW &DOYHUW DFWHG ZLWK WKH&RXUWZURWH m>7@KDWDSHUVRQLVPDNLQJDEURDGO\VHOI SULRUFDOFXODWLRQDQGGHVLJQ LQFXOSDWRU\ FRQIHVVLRQ GRHV QRW PDNH PRUH FUHGLEOH WKH FRQIHVVLRQjVQRQVHOILQFXOSDWRU\SDUWVl/LOO\86DW ,Q 5LFKDUGVRQ Y 0DUVK 86 6 &W 1RWLQJ WKH SUHVXPSWLYH XQUHOLDELOLW\ RI WKH / (G G WKH 6XSUHPH &RXUW QRQVHOILQFXOSDWRU\SRUWLRQVRIDQDFFRPSOLFHj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jVFRQIHVVLRQLQ/LOO\ZDV UHTXLUHPHQWRImSULRUFDOFXODWLRQDQGGHVLJQl7KH2KLRsXU\ WUXVWZRUWK\ HLWKHU EHFDXVH LW ZDV VHOILQFULPLQDWLQJ RU ,QVWUXFWLRQVGHILQHmSULRUFDOFXODWLRQDQGGHVLJQlDVIROORZV EHFDXVHLWZDVVXSSRUWHGE\RWKHUFRUURERUDWLYHHYLGHQFHWKH 6XSUHPH&RXUWVXJJHVWHGWKDWWKHFLUFXPVWDQFHVUHOHYDQWWR m3ULRUFDOFXODWLRQDQGGHVLJQlPHDQVWKDWWKHSXUSRVHWR WKHWUXVWZRUWKLQHVVLQTXLU\DUHWKRVHWKDWVXUURXQGWKHPDNLQJ FDXVH WKH GHDWK ZDV UHDFKHG E\ D GHILQLWH SURFHVV RI RI DQ DFFRPSOLFHjV VWDWHPHQW 7KH &RXUW QRWHG WKDW m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l /LOO\ 86 DW RI WLPH PXVW HODSVH DQG QR SDUWLFXODU DPRXQW RI $SSO\LQJWKHmKLVWRULFDOXQGHUSLQQLQJVlWRWKHFRQIHVVLRQDW FRQVLGHUDWLRQPXVWEHJLYHQEXWDFWLQJRQWKHVSXURIWKH LVVXHLQ/LOO\WKH&RXUWFRQFOXGHG PRPHQWRUDIWHUPRPHQWDU\FRQVLGHUDWLRQRIWKHSXUSRVH WRFDXVHWKHGHDWKLVQRWVXIILFLHQW >7KHDFFRPSOLFH@ZDVLQFXVWRG\IRUKLVLQYROYHPHQWLQ DQG NQRZOHGJH RI VHULRXV FULPHV DQG PDGH KLV 2KLRsXU\,QVWUXFWLRQV VHHDOVR6WDWHY&ROH\ VWDWHPHQWV XQGHU WKH VXSHUYLVLRQ RI JRYHUQPHQWDO 1(G 2KLR ILQGLQJQRPHULWWRWKHGHIHQGDQWjV DXWKRULWLHV+HZDVSULPDULO\UHVSRQGLQJWRWKHRIILFHUVj FKDOOHQJH WR WKH WULDO FRXUWjV MXU\ LQVWUXFWLRQWKH SDWWHUQ OHDGLQJ TXHVWLRQV ZKLFK ZHUH DVNHG ZLWKRXW DQ\ LQVWUXFWLRQIURPWKH2KLRsXU\,QVWUXFWLRQVGHILQLQJmSULRU FRQWHPSRUDQHRXVFURVVH[DPLQDWLRQE\DGYHUVHSDUWLHV FDOFXODWLRQDQGGHVLJQl 7KXV>WKHDFFRPSOLFH@KDGDQDWXUDOPRWLYHWRDWWHPSWWR H[FXOSDWHKLPVHOIDVPXFKDVSRVVLEOH 2XU UHYLHZ RI WKH HYLGHQFH FRQYLQFHV XV WKDW 0DOORU\jV WDSHUHFRUGHGFRQIHVVLRQZDVWKHPRVWFRPSHOOLQJSLHFHRI /LOO\86DW 8QGHUWKHVHFLUFXPVWDQFHVWKH&RXUW HYLGHQFHDJDLQVW&DOYHUW:LWKRXW0DOORU\jVVWDWHPHQWWKH IRXQG WKDW DGPLVVLRQ RI WKH FRGHIHQGDQWjV FRQIHVVLRQ MXU\KHDUGWKDW0DOORU\QRW&DOYHUWWKUHDWHQHG%HQQHWWZLWK YLRODWHG/LOO\jV&RQIURQWDWLRQ&ODXVHULJKWV DQ D[ WKH HYHQLQJ EHIRUH %HQQHWW ZDV PXUGHUHG WKDW %HQQHWWjVJUDQGVRQVDZWKDWKLVJUDQGIDWKHUZDVXSVHWDQG % FRQFHUQHG DERXW 0DOORU\jV WKUHDWV MXVW KRXUV EHIRUH WKH PXUGHU WKDW &DOYHUW NQHZ QRWKLQJ DERXW DQ\ SODQ WR NLOO ,QWKLVFDVHWKH*XHUQVH\&RXQW\&RXUWRI$SSHDOVUHMHFWHG %HQQHWWZKHQKHDJUHHGWRDFFRPSDQ\0DOORU\WR%HQQHWWjV &DOYHUWjV&RQIURQWDWLRQ&ODXVHFODLPLQDEULHIRSLQLRQWKDW DSDUWPHQW WKDW ZLWKLQ PLQXWHV RI HQWHULQJ %HQQHWWjV SURYLGHVOLWWOHDQDO\VLVRIIHGHUDOODZ7KHDSSHOODWHFRXUW DSDUWPHQW0DOORU\EOXGJHRQHG%HQQHWWZLWKDKDWFKHWDQG EHJDQ LWV &RQIURQWDWLRQ &ODXVH DQDO\VLV E\ VWDWLQJ WKDW WKH FXWKLPDFURVVWKHWKURDWZLWKDEXWFKHUNQLIH WKDW&DOYHUW VWDQGDUGIRUDGPLVVLRQRI0DOORU\jVFRQIHVVLRQZDVJRYHUQHG ZKRZDVQHDU%HQQHWWDWWKHWLPHmJRWRXWl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jVVHOILQFULPLQDWLQJVWDWHPHQWZKLFK /(GG ,Q9DQ$UVGDOOLQD&RQIURQWDWLRQ ZDVFRUURERUDWHGE\RWKHUZLWQHVVHVGLGQRWRIIHQGWKH6L[WK &ODXVHFRQWH[WWKH&RXUWKHOG $PHQGPHQWjV&RQIURQWDWLRQ&ODXVHEHFDXVHmWKHHYLGHQFH ZDVDGPLVVLEOHSXUVXDQWWRDILUPO\URRWHGH[FHSWLRQWRWKH 7KH FRUUHFW LQTXLU\ LV ZKHWKHU DVVXPLQJ WKDW WKH KHDUVD\UXOHlDQGEHFDXVHWKHVHOILQFXOSDWRU\QDWXUHRIWKH GDPDJLQJSRWHQWLDORIWKHFURVVH[DPLQDWLRQZHUHIXOO\ VWDWHPHQW FRXSOHG ZLWK RWKHU FRUURERUDWLYH HYLGHQFH UHDOL]HGDUHYLHZLQJFRXUWPLJKWQRQHWKHOHVVVD\WKDWWKH SURYLGHGJXDUDQWHHVRIWUXVWZRUWKLQHVV*LOOLDP1(G HUURUZDVKDUPOHVVEH\RQGDUHDVRQDEOHGRXEW:KHWKHU DW&RQYLQFHGWKDWWKHIDFWVLQ*LOOLDPZHUHmLGHQWLFDOl VXFK DQ HUURU LV KDUPOHVV LQ D SDUWLFXODU FDVH GHSHQGV WRWKHIDFWVLQ&DOYHUWjVFDVHWKH*XHUQVH\&RXQW\&RXUWRI XSRQDKRVWRIIDFWRUVDOOUHDGLO\DFFHVVLEOHWRUHYLHZLQJ $SSHDOV GHWHUPLQHG WKDW WKH DGPLVVLRQ RI 0DOORU\jV FRXUWV 7KHVH IDFWRUV LQFOXGH WKH LPSRUWDQFH RI WKH FRQIHVVLRQDJDLQVW&DOYHUWZDVSURSHU7KHFRXUWZURWH ZLWQHVVjWHVWLPRQ\LQWKHSURVHFXWLRQjVFDVHZKHWKHUWKH WHVWLPRQ\ ZDV FXPXODWLYH WKH SUHVHQFH RU DEVHQFH RI 0U0DOORU\DGPLWWHGWRKLWWLQJWKHYLFWLPZLWKDVWLFN HYLGHQFHFRUURERUDWLQJRUFRQWUDGLFWLQJWKHWHVWLPRQ\RI DQG VWDEELQJ WKH YLFWLP0U 0DOORU\ FRQFOXGHG KLV WKH ZLWQHVV RQ PDWHULDO SRLQWV WKH H[WHQW RI FURVV VWDWHPHQWE\VWDWLQJ m,jPJXLOW\,jPJXLOW\*XLOW\RI H[DPLQDWLRQ RWKHUZLVH SHUPLWWHG DQG RI FRXUVH WKH PXUGHUl:HILQG0U0DOORU\jVVWDWHPHQWZDVDJDLQVW RYHUDOOVWUHQJWKRIWKHSURVHFXWLRQjVFDVH KLV LQWHUHVW DQG FOHDUO\ VXEMHFWHG KLP WR mFULPLQDO OLDELOLW\l 0U 0DOORU\jV VWDWHPHQW GHPRQVWUDWHG ILUVW 9DQ$UVGDOO86DW KDQGNQRZOHGJHRIWKHLQFLGHQW :KLOHDFNQRZOHGJLQJWKH%UHFKWVWDQGDUGWKHGLVWULFWFRXUW ,Q H[DPLQLQJ 0U 0DOORU\jV VWDWHPHQW IRU FRQVLGHUHG WKH IDFWRUV WKDW WKH &RXUW LQ 9DQ $UVGDOO VDLG WUXVWZRUWKLQHVV ZH ILQG WKH WULDO FRXUW KDG SUHYLRXVO\ VKRXOG EH FRQVLGHUHG LQ PDNLQJ WKH &KDSPDQ KDUPOHVV UXOHG DIWHU D VXSSUHVVLRQ KHDULQJ WKDW 0U 0DOORU\jV EH\RQGDUHDVRQDEOHGRXEWDVVHVVPHQW7KHGLVWULFWFRXUWjV VWDWHPHQW ZDV DGPLVVLEOH DJDLQVW 0U 0DOORU\0U GLVFXVVLRQRIWKHKDUPOHVVHUURULVVXHWKXVFHQWHUHGRQWKH 0DOORU\jV GHVFULSWLRQ RI WKH HYHQLQJjV DFWLYLWLHV ZDV mVLJQLILFDQWHYLGHQFHlDJDLQVW&DOYHUW7KHGLVWULFWFRXUWVDLG FROODERUDWHG>VLF@E\RWKHUHYLGHQFHDQGZLWQHVVHV0U QRWKLQJ LQ LWV RUGHU DERXW WKH HIIHFW RI WKH &RQIURQWDWLRQ 0DOORU\jVSDMDPDVZHUHIRXQGWREHEORRGVWDLQHGE\WKH &ODXVHHUURURQWKHMXU\ %XUHDXRI&ULPLQDO,GHQWLILFDWLRQDQG,QYHVWLJDWLRQ WKUHH RIWKHNQLYHVZHUHIRXQGZKHUH0U0DOORU\VDLGWKH\ 7RSURYHDJJUDYDWHGPXUGHUXQGHU2KLRODZDSURVHFXWRU ZRXOGEHDQGDEURNHQZDONLQJVWLFNZDVIRXQGLQWKH PXVW SURYH EH\RQG D UHDVRQDEOH GRXEW WKDW D GHIHQGDQW YLFWLPjVDSDUWPHQW mSXUSRVHO\DQGZLWKSULRUFDOFXODWLRQDQGGHVLJQFDXVH>G@ WKHGHDWKRIDQRWKHUl2KLR5HY&RGH $ m3ULRU 8SRQUHYLHZZHILQGWKHWULDOFRXUWSURSHUO\DSSOLHG FDOFXODWLRQDQGGHVLJQlEHFDPHDQHOHPHQWLQ ZKHQWKH WKH*LOOLDPFDVHDQGSURSHUO\SHUPLWWHGWKHSOD\LQJRI 2KLR*HQHUDO$VVHPEO\UHFODVVLILHGILUVWGHJUHHPXUGHUDV 0U0DOORU\jVWDSHGVWDWHPHQW mDJJUDYDWHG PXUGHUl DQG UHSODFHG WKH PRUH WUDGLWLRQDO HOHPHQW RI mGHOLEHUDWH DQG SUHPHGLWDWHG PDOLFHl ZLWK WKH &RQVSLFXRXVO\DEVHQWIURPWKH*XHUQVH\&RXQW\FRXUWjV RSLQLRQZDVGLVFXVVLRQDQGRUDQDO\VLVRIIHGHUDOODZPRVW &DOYHUWY:LOVRQ 1R 1R &DOYHUWY:LOVRQ QRWDEO\WKH/HHY,OOLQRLVGHFLVLRQ8QGHUVWULNLQJO\VLPLODU HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQWZKHQWKH\GHWHUPLQHG FLUFXPVWDQFHVWKHFRXUWLQ*LOOLDPDQGWKH6XSUHPH&RXUWLQ WKDWWKHDGPLVVLRQRI0DOORU\jVVWDWHPHQWGLGQRWYLRODWHWKH /HH KDG UHDFKHG GLIIHUHQW FRQFOXVLRQV UHJDUGLQJ &RQIURQWDWLRQ&ODXVH:HUHMHFW5HVSRQGHQWjVVXJJHVWLRQ &RQIURQWDWLRQ &ODXVH HUURU ,Q ERWK FDVHV WKH WULDO FRXUW WKDWWKHUHOHYDQWODZGLGQRWEHFRPHFOHDUXQWLO ZKHQ DGPLWWHGWKHFRQIHVVLRQRIDQRQWHVWLI\LQJDFFRPSOLFHZKR DIWHU &DOYHUWjV DSSHDO ZDV GHFLGHG WKH 6XSUHPH &RXUW XQGHUSRVWDUUHVWSROLFHTXHVWLRQLQJDGPLWWHGKLVJXLOWZKR GHFLGHGLQ/LOO\WKDWVWDWHPHQWVDJDLQVWSHQDOLQWHUHVWVGRQRW GHPRQVWUDWHGILUVWKDQGNQRZOHGJHRIWKHFULPHVDQGZKRVH IDOOZLWKLQDILUPO\URRWHGKHDUVD\H[FHSWLRQ$WWKHWLPHRI WHVWLPRQ\ZDVFRUURERUDWHGE\RWKHUHYLGHQFHDQGZLWQHVVHV &DOYHUWjV WULDO IHGHUDO FRQVWLWXWLRQDO ODZ DV FOHDUO\ :KHUHDV WKH *LOOLDP FRXUW IRXQG QR &RQIURQWDWLRQ &ODXVH HVWDEOLVKHG E\ WKH 6XSUHPH &RXUW LQ VXFK FDVHV DV /HH Y HUURUXQGHUWKHVHFLUFXPVWDQFHVWKH6XSUHPH&RXUWKHOGWKDW ,OOLQRLV DQG ,GDKR Y :ULJKW PDQGDWHG WKH H[FOXVLRQ RI mRQWKHUHFRUGEHIRUHXVWKHUHLVQRRFFDVLRQWRGHSDUWIURP 0DOORU\jV WDSHUHFRUGHG FRQIHVVLRQ DV HYLGHQFH DJDLQVW WKH WLPHKRQRUHG WHDFKLQJ WKDW D FRGHIHQGDQWjV FRQIHVVLRQ &DOYHUW 7KH 2KLR FRXUWVj GHFLVLRQV WR WKH FRQWUDU\ LQFXOSDWLQJ WKH DFFXVHG LV LQKHUHQWO\ XQUHOLDEOH DQG WKDW FRQVWLWXWHGHUURUXQGHUWKH&RQIURQWDWLRQ&ODXVH FRQYLFWLRQV VXSSRUWHG E\ VXFK HYLGHQFH YLRODWH WKH FRQVWLWXWLRQDOULJKWRIFRQIURQWDWLRQl/HH86DW & ,Q UHYLHZLQJ &DOYHUWjV KDEHDV SHWLWLRQ WKH GLVWULFW FRXUW 'HVSLWHKDYLQJIRXQGD&RQIURQWDWLRQ&ODXVHYLRODWLRQWKH FRUUHFWO\FRQFOXGHGWKDWXQGHUIHGHUDOODZWKHDGPLVVLELOLW\ GLVWULFW FRXUW GHQLHG UHOLHI EHFDXVH LW IRXQG WKH HUURU WR EH RI 0DOORU\jV VWDWHPHQW GHSHQGHG XSRQ ZKDW LI DQ\ KDUPOHVV7KLVFRXUWUHYLHZVDGLVWULFWFRXUWjVGHFLVLRQDV SDUWLFXODUL]HGJXDUDQWHHVRIWUXVWZRUWKLQHVVVXUURXQGHGWKH WRKDUPOHVVHUURUGHQRYR PDNLQJRIWKHVWDWHPHQW&RQWUDU\WRWKHVWDWHFRXUWVWKH GLVWULFW FRXUW IRXQG QR VXFK JXDUDQWHHV VXUURXQGLQJ WKH )RU SXUSRVHV RI IHGHUDO KDEHDV FRUSXV UHYLHZ D VWDWHPHQWPDGHE\0DOORU\/LNHWKHDFFRPSOLFHjVVWDWHPHQW FRQVWLWXWLRQDO HUURU WKDW LPSOLFDWHV WULDO SURFHGXUHV LV LQ /HH 0DOORU\jV VWDWHPHQW ZDV WKH SURGXFW RI LQFXVWRG\ FRQVLGHUHGKDUPOHVVXQOHVVLWKDGDmVXEVWDQWLDODQGLQMXULRXV LQWHUURJDWLRQ IRU KLV LQYROYHPHQW LQ DQG NQRZOHGJH RI HIIHFWRULQIOXHQFHLQGHWHUPLQLQJWKHMXU\jVYHUGLFWl%UHFKW VHULRXVFULPHV/LNHWKHDFFRPSOLFHLQ/HH0DOORU\PDGHKLV Y$EUDKDPVRQ86 6&W/(GG VWDWHPHQWVXQGHUWKHVXSHUYLVLRQRIJRYHUQPHQWDODXWKRULWLHV 7KLVVWDQGDUGRIUHYLHZUHTXLUHVWKHUHYLHZLQJ LQUHVSRQVHWRSROLFHRIILFHUVjOHDGLQJTXHVWLRQVZKLFKZHUH FRXUWWRH[DPLQHWKHHIIHFWRIWKHHUURURQWKHMXU\UDWKHUWKDQ DVNHG ZLWKRXW DQ\ FRQWHPSRUDQHRXV FURVVH[DPLQDWLRQ E\ WKHVXIILFLHQF\RIWKHHYLGHQFHDWWULDO DGYHUVHSDUWLHV8QGHUWKHVHFLUFXPVWDQFHVWKHGLVWULFWFRXUW GHWHUPLQHGWKDWWKHUHZHUHQRFLUFXPVWDQWLDOJXDUDQWHHVRI %HIRUH%UHFKWFRXUWVKDGDSSOLHGWKHKDUPOHVVEH\RQGD WUXVWZRUWKLQHVV ZKLFK ZRXOG UHPRYH WKH SUHVXPSWLRQ RI UHDVRQDEOHGRXEW VWDQGDUG HQXQFLDWHG LQ &KDSPDQ Y XQUHOLDELOLW\DQGWKDWWKHUHIRUHWKHDGPLVVLRQRI0DOORU\jV &DOLIRUQLD 86 6 &W / (G G VWDWHPHQWZDVDYLRODWLRQRIWKH&RQIURQWDWLRQ&ODXVH $FNQRZOHGJLQJ WKDW %UHFKW VHW WKH VWDQGDUG IRU :H KDYH QR WURXEOH LQ FRQFOXGLQJ WKDW WKH GLVWULFW FRXUW FRUUHFWO\ GHWHUPLQHG WKDW WKH DGPLVVLRQ RI 0DOORU\jV WDSH UHFRUGHG VWDWHPHQW DJDLQVW &DOYHUW YLRODWHG &DOYHUWjV &DOYHUW DUJXHV WKDW 5HVSRQGHQW ZDLYHG WKH KDUPOHVV HUURU LVVXH E\ UDLVLQJ LW LQ D IRRWQRWH ZLWKRXW GLVFXVVLRQ RU FLWDWLRQ WR DXWKRULW\ &RQIURQWDWLRQ &ODXVH ULJKWV :H DOVR KDYH QR WURXEOH LQ %HFDXVH ZH ILQG WKDW &DOYHUW LV HQWLWOHG WR UHOLHI ZKHWKHU 5HVSRQGHQW FRQFOXGLQJWKDWWKH2KLRFRXUWVDFWHGmFRQWUDU\WRlFOHDUO\ ZDLYHG WKH KDUPOHVV HUURU LVVXH RU QRW ZH GHFOLQH WR FRQVLGHU &DOYHUWjV DUJXPHQW UHJDUGLQJ ZDLYHU
Calvert v. Wilson (Calvert v. Wilson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.