Coleman 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

:$<1( &2/(0$1 ; 3HWLWLRQHU$SSHOODQW    1R Y  !  '21 '(:,77:DUGHQ  5HVSRQGHQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1Rn$OJHQRQ/0DUEOH\'LVWULFWsXGJH $UJXHG2FWREHU 'HFLGHGDQG)LOHG0DUFK %HIRUH%2**6DQG*,/0$1&LUFXLWsXGJHVDQG 48,67'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('0HO\QGD:&RRN5HLFK6&+$' &22. ,QGLDQ6SULQJV2KLRIRU$SSHOODQWsRQDWKDQ5)XONHUVRQ 2 ) ) ,& (  2 ) 7 + (  $ 7 7 2 5 1 ( <  * ( 1 ( 5 $ /

7KH +RQRUDEOH *RUGRQ s 4XLVW 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ

  &ROHPDQY'H:LWW 1R 1R &ROHPDQY'H:LWW 

&255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR ,,, IRU $SSHOOHH  21 %5,()  0HO\QGD : &RRN5HLFK 6&+$'  &22. ,QGLDQ 6SULQJV 2KLR IRU $SSHOODQW :HWKHUHIRUH$)),50WKHMXGJPHQWRIWKHGLVWULFWFRXUW sRQDWKDQ 5 )XONHUVRQ 2)),&( 2) 7+( $77251(< GHQ\LQJ&ROHPDQjVSHWLWLRQIRUDZULWRIKDEHDVFRUSXV *(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21 &ROXPEXV 2KLR 'DYLG 0 *RUPOH\ 2)),&( 2) 7+( $77251(< *(1(5$/ 2) 2+,2 &ROXPEXV 2KLR IRU $SSHOOHH:D\QH&ROHPDQ&KLOOLFRWKH2KLRSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %2**6 &LUFXLW sXGJH  :D\QH &ROHPDQ DSSHDOV WKH GLVWULFWFRXUWjVGHQLDORIKLVSHWLWLRQIRUKDEHDVFRUSXV,Q 0D\&ROHPDQZDVFRQYLFWHGE\DQ2KLRVWDWHFRXUWRI LQYROXQWDU\PDQVODXJKWHUDQGIHORQLRXVDVVDXOWSXUVXDQWWR DQRORFRQWHQGHUHSOHD&ROHPDQKDGNLFNHG2OLYLD:LOOLDPV LQWKHDEGRPHQDQGRWKHUZLVHKDGEDWWHUHGKHU$VDUHVXOWRI &ROHPDQjVYLROHQWDFWLRQV:LOOLDPVVXIIHUHGDPLVFDUULDJH OHDGLQJ WR KLV FRQYLFWLRQ IRU LQYROXQWDU\ PDQVODXJKWHU &ROHPDQDUJXHVWKDWWKHPDQVODXJKWHUFRQYLFWLRQYLRODWHGKLV )RXUWHHQWK$PHQGPHQWVXEVWDQWLYHGXHSURFHVVULJKWVXQGHU 5RHY:DGH86DQGLWVSURJHQ\EHFDXVH WKH 2KLR LQYROXQWDU\ PDQVODXJKWHU VWDWXWH GLG QRW UHTXLUH SURRIRIWKHPLVFDUULHGIHWXVjVYLDELOLW\IRUFRQYLFWLRQ+H DOVR DUJXHV WKDW KLV QLQH\HDU VHQWHQFH IRU WKH LQYROXQWDU\ PDQVODXJKWHUFRXQWFRQVWLWXWHVFUXHODQGXQXVXDOSXQLVKPHQW )RUWKHIROORZLQJUHDVRQVZHDIILUPWKHGLVWULFWFRXUWjVGHQLDO RIKLVSHWLWLRQIRUKDEHDVFRUSXV , ,Q WKH IDOO RI  &ROHPDQ ZDV URPDQWLFDOO\ LQYROYHG ZLWK2OLYLD:LOOLDPV2Q2FWREHU&ROHPDQZKLOH SK\VLFDOO\DEXVLQJ:LOOLDPVNLFNHGKHULQWKHDEGRPHQ$W WKH WLPH RI WKH DVVDXOW :LOOLDPV ZDV SUHJQDQW DQG &ROHPDQjV EORZ WR :LOOLDPVjV DEGRPHQ FDXVHG KHU WR PLVFDUU\  &ROHPDQY'H:LWW 1R 1R &ROHPDQY'H:LWW 

%HFDXVH &ROHPDQjV FRQYLFWLRQ GRHV QRW WUDQVJUHVV DQ\ &ROHPDQ ZDV DUUHVWHG ILYH GD\V ODWHU  2Q 2FWREHU  UHDVRQDEOHLQWHUSUHWDWLRQRIWKH)RXUWHHQWK$PHQGPHQWPXFK  &ROHPDQ ZDV LQGLFWHG IRU IHORQLRXV DVVDXOW DQG OHVV RQH FOHDUO\ HVWDEOLVKHG E\ WKH 6XSUHPH &RXUW RI WKH LQYROXQWDU\ PDQVODXJKWHU SXUVXDQW WR 2KLR 5HY &RGH 8QLWHG6WDWHVZHDIILUPWKHGLVWULFWFRXUWjVMXGJPHQWILQGLQJ †7KHLQGLFWPHQWDOOHJHGWKDW&ROHPDQFRPPLWWHG &ROHPDQjVVXEVWDQWLYHGXHSURFHVVDUJXPHQWZLWKRXWPHULW LQYROXQWDU\PDQVODXJKWHUE\mXQODZIXOO\WHUPLQDW>LQJ@2OLYLD :LOOLDPVjSUHJQDQF\DVDSUR[LPDWHUHVXOWRIFRPPLWWLQJ %&ROHPDQjV&UXHODQG8QXVXDO3XQLVKPHQW&ODLP DIHORQ\l &ROHPDQ DOVR DUJXHV WKDW KLV VHQWHQFH RI QLQH \HDUV IRU &ROHPDQSOHGQRFRQWHVWWRWKHLQYROXQWDU\PDQVODXJKWHU LQYROXQWDU\ PDQVODXJKWHU YLRODWHV KLV (LJKWK $PHQGPHQW DQGIHORQLRXVDVVDXOWFRXQWV3XUVXDQWWRKLVSOHDWKH2KLR ULJKWDJDLQVWFUXHODQGXQXVXDOSXQLVKPHQW WULDOFRXUWVHQWHQFHGKLPWRQLQH\HDUVRILPSULVRQPHQWIRU LQYROXQWDU\PDQVODXJKWHUWRUXQFRQFXUUHQWO\ZLWKDVHYHQ 7KH(LJKWK$PHQGPHQWGRHVIRUELGH[WUHPHVHQWHQFHVWKDW \HDUVHQWHQFHIRUIHORQLRXVDVVDXOW DUHmJURVVO\GLVSURSRUWLRQDWHWRWKHFULPHl6HH+DUPHOLQY 0LFKLJDQ867RGHWHUPLQHZKHWKHU &ROHPDQ DSSHDOHG KLV FRQYLFWLRQ WR WKH 2KLR &RXUW RI DVHQWHQFHLVmJURVVO\GLVSURSRUWLRQDWHlFRXUWVORRNWRWKH $SSHDOVDUJXLQJWKDW2KLR5HY&RGH†WKHEDVLVIRU JUDYLW\ RI WKH RIIHQVH LQFOXGLQJ ZKHWKHU WKH FULPH ZDV KLVLQYROXQWDU\PDQVODXJKWHUFRQYLFWLRQZDVXQFRQVWLWXWLRQDO YLROHQW  6HH LG  .HQQHG\ FRQFXUULQJ 8QLWHG EHFDXVH LW GLG QRW UHTXLUH SURRI RI WKH WHUPLQDWHG IHWXVjV 6WDWHVY+LOO)GWK&LU YLDELOLW\7KH2KLR&RXUWRI$SSHDOVDIILUPHGKLVFRQYLFWLRQ XSKROGLQJ WKH VWDWXWHjV FRQVWLWXWLRQDOLW\  &ROHPDQ WKHQ &ROHPDQjV VHQWHQFH RI QLQH \HDUV IRU LQYROXQWDU\ DSSHDOHG WR WKH 2KLR 6XSUHPH &RXUW ZKLFK VXPPDULO\ PDQVODXJKWHU LV IDU IURP WKH mJURVV GLVSURSRUWLRQDOLW\l DIILUPHGWKH&RXUWRI$SSHDOV UHTXLUHGWRRIIHQGWKH(LJKWK$PHQGPHQW&ROHPDQjVDFWLRQV ZHUHYLROHQWDQGGHSULYHG:LOOLDPVRIKHUFKLOGRUDWOHDVW &ROHPDQ WKHQ ILOHG D SHWLWLRQ IRU KDEHDV FRUSXV LQ WKH WKHDELOLW\WRH[HUFLVHKHUULJKWVRYHUKHUSUHJQDQF\$WOHDVW 8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH6RXWKHUQ'LVWULFWRI2KLR DVLPSRUWDQWDVDZRPDQj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jVYLROHQWDFWEH\RQGWKHFRQVWLWXWLRQDO PHULWDQGGHQLHG&ROHPDQjVSHWLWLRQIRUKDEHDVFRUSXV SDOH&I%URZQY0D\OH:/WK&LU KROGLQJ WKDW D OLIH VHQWHQFH IRU QRQYLROHQW SHWW\ WKHIW &ROHPDQ QRZ DSSHDOV WKH GLVWULFW FRXUWjV GHQLDO RI KLV WKURXJKWKHDSSOLFDWLRQRI&DOLIRUQLDjVmWKUHHVWULNHVlVWDWXWH SHWLWLRQ YLRODWHGWKH(LJKWK$PHQGPHQW,QGHHGWKH6XSUHPH&RXUW KDVQHYHUKHOGXQFRQVWLWXWLRQDODVHQWHQFHOHVVVHYHUHWKDQOLIH ,, LPSULVRQPHQWZLWKRXWWKHSRVVLELOLW\RISDUROH6HH6ROHPY +HOP86UHFRJQL]LQJIRUWKHILUVWWLPHWKDW ,QWKLVFDVHRXUFRQVLGHUDWLRQRI&ROHPDQjVSHWLWLRQIRU QRQFDSLWDO VHQWHQFHV ZHUH VXEMHFW WR (LJKWK $PHQGPHQW KDEHDVFRUSXVLVOLPLWHGE\WKH$QWL7HUURULVPDQG(IIHFWLYH UHYLHZ 'HDWK3HQDOW\$FWRI7KH$FWSURKLELWVIHGHUDOFRXUWV IURPLVVXLQJDZULWRIKDEHDVFRUSXVZLWKUHVSHFWWRDQ\FODLP  &ROHPDQY'H:LWW 1R 1R &ROHPDQY'H:LWW 

WKDWZDVmDGMXGLFDWHGRQWKHPHULWVLQWKHVWDWHFRXUWXQOHVV EHDWWDFNHGDVRYHUEURDGl*UHQGHOOY2KLR6XSUHPH&RXUW WKHDGMXGLFDWLRQRIWKHFODLPUHVXOWHGLQDGHFLVLRQWKDWZDV  )G   WK &LU  m,W LV ZHOOVHWWOHG WKDW FRQWUDU\ WR RU LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI IDFLDO FRQVWLWXWLRQDO FKDOOHQJHV UHO\LQJ RQ WKH RYHUEUHDGWK FOHDUO\HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH GRFWULQHDQGWKHUHVXOWDQWFKLOOLQJHIIHFWVXFKRYHUEUHDGWKKDV &RXUW RI WKH 8QLWHG 6WDWHVl  86& † G   7KH RQ VSHHFK DUH OLPLWHG WR WKH )LUVW $PHQGPHQW VSKHUHl 2KLR FRXUWV LQ WKLV FDVH GHFLGHG DJDLQVW &ROHPDQ DOO WKH 2XWVLGHWKH)LUVW$PHQGPHQWFRQWH[WZHZLOORQO\XSKROGD LVVXHV WKDW KH FXUUHQWO\ UDLVHV  7KXV 6HFWLRQ G  IDFLDO FKDOOHQJH WR D VWDWXWH LI WKH FKDOOHQJLQJ SDUW\ FDQ DSSOLHV GHPRQVWUDWHWKDWWKHUHLVQRFRQVWLWXWLRQDODSSOLFDWLRQRIWKH VWDWXWH 8QLWHG 6WDWHV Y 6DOHUQR  86   &ROHPDQ DUJXHV WKDW WKH VWDWH PD\ QRW SURKLELW WKH  5HQR Y )ORUHV  86     m7R WHUPLQDWLRQRIDSUHJQDQF\EHIRUHWKHYLDELOLW\RIWKHIHWXV SUHYDLO RQ VXFK D IDFLDO FKDOOHQJH WKH >FKDOOHQJLQJ SDUW\@ EHFDXVH RI WKH 6XSUHPH &RXUWjV LQWHUSUHWDWLRQ RI WKH µPXVW HVWDEOLVK WKDW QR VHW RI FLUFXPVWDQFHV H[LVWV XQGHU )RXUWHHQWK$PHQGPHQWLQ5RHY:DGH86 ZKLFKWKH>VWDWXWH@ZRXOGEHYDOLGjl2IFRXUVHWKHUHLVD $FFRUGLQJO\ &ROHPDQ FRQWHQGV WKDW KLV FRQYLFWLRQ IRU FRQVWLWXWLRQDO DSSOLFDWLRQ RI WKH  2KLR LQYROXQWDU\ WHUPLQDWLQJ :LOOLDPVjV SUHJQDQF\ HYHQ LI DV D UHVXOW RI PDQVODXJKWHUVWDWXWHo&ROHPDQjVFDVH FRPPLWWLQJ D IHORQ\ ZLWKRXW DQ\ SURRI RI KHU IHWXVjV YLDELOLW\ YLRODWHG KLV ULJKWV XQGHU WKH )RXUWHHQWK 6HFRQG HYHQ LI ZH ZHUH LQFOLQHG WR HQJDJH LQ DQ $PHQGPHQW$OVRDSSHDOLQJKLVVHQWHQFH&ROHPDQXUJHVXV RYHUEUHDGWKDQDO\VLVWKHVWDWXWHGRHVQRWDSSHDUWRUHDFKDQ\ LQWKHDOWHUQDWLYHWRKROGWKDWQLQH\HDUVIRUWKHPDQVODXJKWHU SURWHFWHG FRQGXFW  7KH VWDWXWH SURKLELWV WKH mXQODZIXO RIDIHWXVLVFUXHODQGXQXVXDOSXQLVKPHQWXQGHUWKH(LJKWK WHUPLQDWLRQRIDQRWKHUjVSUHJQDQF\DVDSUR[LPDWHUHVXOWRI $PHQGPHQW:HDGGUHVVHDFKRIKLVDUJXPHQWVVHSDUDWHO\ WKHRIIHQGHUjVFRPPLWWLQJDPLVGHPHDQRUl7RSUHYDLO EHORZ WKHVWDWHDSSHDUVUHTXLUHGWRHVWDEOLVKDWOHDVWWZRHOHPHQWV XQGHUWKHVWDWXWHWKDWWKHWHUPLQDWLRQRIWKHSUHJQDQF\ $&ROHPDQjV6XEVWDQWLYH'XH3URFHVV&ODLP ZDVmXQODZIXOlDQGWKDWLWZDVFDXVHGE\WKHGHIHQGDQWjV FRPPLVVLRQ RI D PLVGHPHDQRU  :H DUH QRW DZDUH RI DQ\ &ROHPDQ DUJXHV WKDW KLV FRQYLFWLRQ IRU LQYROXQWDU\ 2KLRODZWKDWPDNHVDZRPDQjVSURFXULQJRIDFRQVHQVXDO PDQVODXJKWHU SXUVXDQW WR 2KLR 5HY &RGH †  LV DERUWLRQ D mPLVGHPHDQRUl WULJJHULQJ WKH LQYROXQWDU\ XQFRQVWLWXWLRQDO EHFDXVH LW YLRODWHG WKH VXEVWDQWLYH GXH PDQVODXJKWHUVWDWXWH0RUHRYHUVXFKDFRQVHQVXDODERUWLRQ SURFHVV ULJKWV DQQRXQFHG LQ 5RH Y :DGH DQG LWV SURJHQ\ YHU\OLNHO\ZRXOGQRWEHmXQODZIXOlDVLQWHUSUHWHGE\2KLR 7KHUHOHYDQWVHFWLRQRIWKH2KLRFRGHSURYLGHVDVIROORZV FRXUWV,QWKLVVHQVHWKHVWDWXWHVHHPVZHOOWDLORUHGWRWDUJHW m1RSHUVRQVKDOOFDXVHWKHGHDWKRIDQRWKHURUWKHXQODZIXO DFWLYLW\ OLNH &ROHPDQjV WKDW LQWHUIHUHV ZLWK WKH ZRPDQjV WHUPLQDWLRQRIDQRWKHUjVSUHJQDQF\DVDSUR[LPDWHUHVXOWRI ULJKWWRFRQWLQXHRUXQGHUFHUWDLQOLPLWHGFLUFXPVWDQFHVWR WKH RIIHQGHUjV FRPPLWWLQJ RU DWWHPSWLQJ WR FRPPLW D WHUPLQDWHKHUSUHJQDQF\ PLVGHPHDQRU RI DQ\ GHJUHHl 2KLR 5HY &RGH †  %HFDXVHWKHVWDWXWHGRHVQRWUHTXLUHWKHVWDWHWRDOOHJHRUWR SURYHWKHYLDELOLW\RIWKHWHUPLQDWHGIHWXV&ROHPDQFRQWHQGV WKDWWKHVWDWXWHLVEH\RQGWKHVWDWHjVSUHVFULSWLYHSRZHUXQGHU 5RHDQGLVWKHUHIRUHXQFRQVWLWXWLRQDO  ,QGHHG WKLV LV ZK\ IDFLDO FRQVWLWXWLRQDO FKDOOHQJHV DUH XQLYHUVDOO\

&ROHPDQjVDUJXPHQWPLVFRQFHLYHVWKHQDWXUHRIWKHULJKW XQVXFFHVVIXO DV GHIHQVHV WR FULPLQDO SURVHFXWLRQV IRU QRQH[SUHVVLYH FRQGXFW ,I WKH VWDWXWH LV FRQVWLWXWLRQDO DV DSSOLHG WR WKH GHIHQGDQWjV HVWDEOLVKHG LQ 5RH  &ROHPDQ VHHV 5RH DV DQ DEVROXWH DFWLYLWLHV LW D IRUWLRUDUL IDLOV WKH 6DOHUQR VWDQGDUG  &ROHPDQY'H:LWW 1R 1R &ROHPDQY'H:LWW 

KHUFRQVHQW3URWHFWLQJWKHDELOLW\WRH[HUFLVHDIXQGDPHQWDO SURKLELWLRQRQVWDWHUHJXODWLRQRUSURWHFWLRQRIIHWDOKHDOWK ULJKWLVDFRPSHOOLQJVWDWHLQWHUHVWWKDWZRXOGVXUYLYHVWULFW EHIRUH YLDELOLW\  ,Q 5RH WKH 6XSUHPH &RXUW KHOG WKDW D VFUXWLQ\HYHQLILWZHUHUHTXLUHG ZRPDQjV ULJKW WR SULYDF\ GHULYHG IURP WKH VXEVWDQWLYH FRPSRQHQWV RI WKH )RXUWHHQWK $PHQGPHQWjV 'XH 3URFHVV &ROHPDQ DOVR KDOWLQJO\ DUJXHV WKDW WKH VWDWXWH LV &ODXVHLQFOXGHVDZRPDQjVULJKWWRGHFLGHZKHWKHURUQRWWR XQFRQVWLWXWLRQDOO\ RYHUEURDG LQ WKDW LW PD\ LQ DGGLWLRQ WR WHUPLQDWH KHU RZQ SUHJQDQF\  $OWKRXJK WKH SUHFLVH &ROHPDQjVFRQGXFWDOVRSURVFULEHFRQVWLWXWLRQDOO\SURWHFWHG MXVWLILFDWLRQIRUWKHULJKWKDVQHYHUEHHQIXOO\DUWLFXODWHGWKH FRQGXFW+HUH&ROHPDQVHHNVWRLQYDOLGDWHWKHPDQVODXJKWHU ULJKWDSSHDUVWRUHVWDWOHDVWLQSDUWRQDSUHJQDQWZRPDQjV VWDWXWHE\LQYRNLQJWKHULJKWVRIWKHZRPDQZKRPKHDEXVHG LQWHUHVW LQ VHOIGHWHUPLQDWLRQ DQG WKH SURIRXQG HIIHFW WKDW 7KHUH DUH WZR SUREOHPV ZLWK &ROHPDQjV RYHUEUHDGWK SUHJQDQF\KDVXSRQWKHZRPDQ6HH3ODQQHG3DUHQWKRRGRI DUJXPHQWHDFKLQGHSHQGHQWO\IDWDOWRKLVFODLP 6RXWKHDVWHUQ 3HQQV\OYDQLD Y &DVH\  86   2j&RQQRUSOXUDOLW\RSLQLRQm7KHVHPDWWHUVLQYROYLQJWKH )LUVW LQ WKH RYHUEUHDGWK GRFWULQH &ROHPDQ LV WU\LQJ WR PRVWLQWLPDWHDQGSHUVRQDOFKRLFHVDSHUVRQPD\PDNHLQD DVVHUWDIHDWXUHRIRXU)LUVW$PHQGPHQWMXULVSUXGHQFHWKDWLV OLIHWLPHFKRLFHVFHQWUDOWRSHUVRQDOGLJQLW\DQGDXWRQRP\DUH LQDSSOLFDEOHWR&ROHPDQjV)RXUWHHQWK$PHQGPHQWDUJXPHQW FHQWUDO WR WKH OLEHUW\ SURWHFWHG E\ WKH )RXUWHHQWK 7KH RYHUEUHDGWK GRFWULQH LV DQ H[FHSWLRQ WR WKH WUDGLWLRQDO $PHQGPHQWl7RSUHVHUYHWKLVDXWRQRP\WKHDERUWLRQULJKW UXOHVRIVWDQGLQJE\DOORZLQJOLWLJDQWVWRDVVHUWWKHULJKWVRI GUDZVLWVFRQVWLWXWLRQDOHVVHQFHIURPSHUPLWWLQJWKHZRPDQ SDUWLHV QRW EHIRUH WKH FRXUW 7ULSOHWW *ULOOH ,QF Y &LW\ RI DGHFLVLRQUHJDUGLQJWKHIDWHRIKHUSUHJQDQF\7KHmHVVHQWLDO $NURQ)GWK&LU6HHDOVR6HFUHWDU\ KROGLQJRI5RHlLVDmUHFRJQLWLRQRIWKHULJKWRIWKHZRPDQWR RI6WDWHRI0GYsRVHSK+0XQVRQ&R86 FKRRVHWRKDYHDQDERUWLRQEHIRUHYLDELOLW\DQGWRREWDLQLW  KROGLQJ WKDW JHQHUDOO\ D OLWLJDQW FDQQRW DVVHUW WKH ZLWKRXWXQGXHLQIOXHQFHIURPWKHVWDWHl,GDWHPSKDVLV ULJKWV RI WKLUG SDUWLHV  ,Q WKH IUHH VSHHFK FRQWH[W WKH DGGHG RYHUEUHDGWKGRFWULQHLVGHVLJQHGmWRSUHYHQWWKHFKLOOLQJRI IXWXUH SURWHFWHG H[SUHVVLRQl'HMD 9X RI 1DVKYLOOH ,QF Y 7KH &RXUWjV FUHDWLRQ RI WKLV ULJKW XQGHU WKH )RXUWHHQWK 0HWURSROLWDQ*RYjWRI1DVKYLOOH)GWK&LU $PHQGPHQWZDVQRWKRZHYHUDGHWHUPLQDWLRQWKDWWKHVWDWH ([SUHVVLYHFRQGXFWDV D FRQVWLWXWLRQDOO\SURWHFWHG KDVQRSUHVFULSWLYHLQWHUHVWLQPDWWHUVLQYROYLQJWKHXQERUQ DFWLYLW\ LV LGLRV\QFUDWLFDOO\ VHQVLWLYH WR FULPLQDO VDQFWLRQV 4XLWHWRWKHFRQWUDU\WKH&RXUWLQ5RHUHFRJQL]HGWKDWWKH DQGVWDWHUHJXODWLRQ6HH1HZ

,Q 5RH VWULFW VFUXWLQ\ ZDV WULJJHUHG E\ WKH ZRPDQjV LQYROXQWDU\ PDQVODXJKWHU VWDWXWH WR &ROHPDQjV DFWLRQV VXEVWDQWLYHGXHSURFHVVULJKWWRGHFLGHWKHRXWFRPHRIKHU 3XQLVKLQJ&ROHPDQjVDFWLRQVLQQRZD\LPSOLFDWHVDZRPDQjV SUHJQDQF\DQLQWHUHVWGLUHFWO\UHJXODWHGE\WKH7H[DVVWDWXWH ULJKWWRGHWHUPLQHWKHGLVSRVLWLRQRIKHUSUHJQDQF\UHFRJQL]HG IRUELGGLQJ ZRPHQ IURP SURFXULQJ DERUWLRQV  :KLOH WKH LQ 5RH DQG LWV SURJHQ\  &ROHPDQjV YLROHQW DVVDXOW ZDV ZRPDQjV OLEHUW\ LQWHUHVW LQ WKH DERUWLRQ GHFLVLRQ UHPDLQV ZLWKRXW WKH FRQVHQW RI KLV KHOSOHVV JLUOIULHQG 2OLYLD FRQVWDQWWKHVWDWHjVUHJXODWRU\LQWHUHVWJURZVRYHUWKHWHUPRI :LOOLDPV,WLV:LOOLDPVWKHSUHJQDQWZRPDQZKRKROGVWKH WKHSUHJQDQF\$WOHDVWDFFRUGLQJWRWKH&RXUWLQ5RHWKH OLPLWHGULJKWWRWHUPLQDWHKHUSUHJQDQF\EHIRUHYLDELOLW\DQG VWDWHjVLQWHUHVWLQSURWHFWLQJIHWDOOLIHEHFRPHVmFRPSHOOLQJl &ROHPDQ PD\ QRW LQYRNH LW RQ KHU EHKDOI  7KH ULJKW DQG WKHUHE\ FDSDEOH RI VXUYLYLQJ VWULFW VFUXWLQ\ ZKHQ WKH UHFRJQL]HGLQ5RHQRWEHLQJLPSOLFDWHGWKHVWDWHjVLQWHUHVWLQ IHWXVEHFRPHVYLDEOH,GDW SURWHFWLQJWKHOLIHRIWKHXQERUQQHHGQRWEHmFRPSHOOLQJlWR VXVWDLQWKHUHJXODWLRQRI&ROHPDQjVDFWLRQV 2KLRjVLQWHUHVWLQWKHSURWHFWLRQRIIHWDOOLIHQHHGQRWEH FRPSHOOLQJKRZHYHUWRMXVWLI\WKHDSSOLFDWLRQRIWKH2KLR ,I ZH NQRZ DQ\WKLQJ IURP 5RH LW LV WKDW WKH VWDWH KDV D OHJLWLPDWH DQG LPSRUWDQW LQWHUHVW LQ SURWHFWLQJ IHWDO OLIH WKURXJKRXW WKH SUHJQDQF\ HYHQ EHIRUH YLDELOLW\ 5RH   7KH SURWHFWLRQ RI IHWDO OLIH LV QRW WKH RQO\ OHJLWLPDWH VWDWH LQWHUHVW LQ 86DWFKDUDFWHUL]LQJWKHVWDWHjVLQWHUHVWLQIHWDOKHDOWK WKH UHJXODWLRQ RI DERUWLRQ 7KH &RXUW DOVR UHFRJQL]HG WKDW WKH VWDWH KDV D DV mOHJLWLPDWH DQG LPSRUWDQWl &DVH\  86 DW  OHJLWLPDWH LQWHUHVW LQ SURWHFWLQJ WKH KHDOWK RI WKH PRWKHU ZKLFK EHFRPHV 2j&RQQRUSOXUDOLW\RSLQLRQDQmHVVHQWLDOKROGLQJlRI5RH FRPSHOOLQJ DIWHU WKH ILUVW WULPHVWHU RI SUHJQDQF\ 7KLV LQWHUHVW ZRXOG mLVWKHSULQFLSOHWKDWWKH6WDWHKDVOHJLWLPDWHLQWHUHVWVIURPWKH MXVWLI\ D YDULHW\ RI UHJXODWLRQV RQ WKH PDQQHU LQ ZKLFK DERUWLRQV DUH RXWVHWRIWKHSUHJQDQF\LQSURWHFWLQJWKHOLIHRIWKHIHWXV SHUIRUPHG 7KH FRPELQDWLRQ RI WKHVH WZR LQWHUHVWV XQGHUOD\ WKH &RXUWjV 5RH 8QGHU WKH WULPHVWHU IUDPHZRUN WKH VWDWH ZDV WKDWPD\EHFRPHDFKLOGl2KLRjVSXUVXLWRIWKDWOHJLWLPDWH LQGHHGLPSRUWDQWLQWHUHVWE\FULPLQDOL]LQJYLROHQWDVVDXOWVRQ WULPHVWHU IUDPHZRUN LQ DOORZHG WR DGRSW UHJXODWLRQV QDUURZO\ WDLORUHG WR SURWHFW WKH KHDOWK RI WKH PRWKHU DIWHU WKH ILUVW WULPHVWHU DQG UHJXODWLRQV QDUURZO\ WDLORUHG WR ZRPHQWKDWWHUPLQDWHIHWDOOLIHLVFHUWDLQO\FRQVWLWXWLRQDO SURWHFW IHWDO KHDOWK LQFOXGLQJ D FRPSOHWH SURVFULSWLRQ RI DERUWLRQV H[FHSW ZKHQ QHFHVVDU\ WR SUHVHUYH WKH OLIH RU KHDOWK RI WKH PRWKHU DIWHU WKH ,QOLJKWRIWKHWUXHPHDQLQJRI5RH&ROHPDQjVDUJXPHQWLV VHFRQG WULPHVWHU 6HH 5RH  86 DW  %HFDXVH WKLV WULPHVWHU IUDXJKW ZLWK LURQ\  7KH 2KLR LQYROXQWDU\ PDQVODXJKWHU IUDPHZRUN ZDV QRW QHFHVVDU\ WR WKH &RXUWjV UHVROXWLRQ RI WKH FDVH EHIRUH LW LW LV QRW FOHDU WR ZKDW H[WHQW WKH IUDPHZRUN KDV HYHU ERXQG WKLV FRXUW VWDWXWH DV DSSOLHG WR DFWLRQV OLNH &ROHPDQjV SURWHFWV D LQ LWV DERUWLRQ GHFLVLRQV 6HH &DVH\  86 DW  2j&RQQRU SOXUDOLW\ ZRPDQjVULJKWWRGHWHUPLQHWKHIDWHRIKHUSUHJQDQF\7KH RSLQLRQ m:H VHH KRZ WLPH KDV RYHUWDNHQ VRPH RI 5RHjV IDFWXDO VXEVWDQWLYH GXH SURFHVV ULJKW LQ 5RH LV D GHFLVLRQDO ULJKW DVVXPSWLRQV DGYDQFHV LQ PDWHUQDO KHDOWK FDUH DOORZ DERUWLRQV VDIH WR WKH DJDLQVW JRYHUQPHQWDO LQWHUIHUHQFH ZKLFK LV PHDQLQJOHVV PRWKHU ODWHU LQ SUHJQDQF\ WKDQ ZDV WUXH LQ  DQG DGYDQFHV LQ QHRQDWDO ZKHQDSULYDWHSDUW\WHUPLQDWHVDZRPDQjVSUHJQDQF\ZLWKRXW FDUH KDYH DGYDQFHG YLDELOLW\ WR D SRLQW VRPHZKDW HDUOLHUl :HEVWHU Y 5HSURGXFWLYH +HDOWK 6HUY  86    5HKQTXLVW FRQFXUULQJ VXJJHVWLQJ WKH FRPSHOOLQJ VWDWH LQWHUHVW LQ IHWDO OLIH DW OHDVW  VKLIWV ZLWK PHGLFDO WHFKQRORJ\ DQG LWV HIIHFWV RQ WKH SRLQW RI YLDELOLW\ 2I FRXUVH QRW HYHU\ VWDWH UHJXODWLRQ LV VXEMHFW WR VWULFW VFUXWLQ\ 7KXV WKH &RXUW LQ &DVH\ KHOG WKDW HYHQ EHIRUH YLDELOLW\ WKH VWDWH PD\ ,QVWHDG D VWDWH SUHVFULSWLRQ LV UHTXLUHG WR VXUYLYH VWULFW VFUXWLQ\ RQO\ ZKHQ DGYDQFH LWV LQWHUHVW LQ IHWDO OLIH E\ IRU H[DPSOH SHUVXDGLQJ ZRPHQ WR WKH UHJXODWHG DFWLYLW\ LV SURWHFWHG E\ mFHUWDLQ IXQGDPHQWDO ULJKWVl ,G DW FDUU\ WKHLU FKLOGUHQ WR WHUP DV ORQJ DV LW GRHV QRW SODFH DQ XQGXH EXUGHQ  6HH DOVR &ODUN Y sHWHU  86    H[SODLQLQJ WKH RQ WKH H[HFXWLRQ RI WKH ZRPDQjV GHFLVLRQ &DVH\  86 DW  GLIIHUHQW OHYHOV RI FRQVWLWXWLRQDO VFUXWLQ\ $EVHQW D FRQVWLWXWLRQDO 2j&RQQRU SOXUDOLW\ RSLQLRQ ,Q VKRUW LW LV LQDFFXUDWH IRU &ROHPDQ WR SURWHFWLRQ RI WKH UHJXODWHG DFWLYLW\ FRXUWV JHQHUDOO\ GHIHU WR WKH MXGJPHQW DUJXH WKDW WKH VWDWH KDV QR FRQVWLWXWLRQDOO\ VXIILFLHQW LQWHUHVW LQ UHJXODWLQJ RI WKH HQDFWLQJ OHJLVODWXUH UHTXLULQJ RQO\ WKDW WKH UHJXODWLRQ EH mUDWLRQDOO\ IHWDO OLIH EHIRUH YLDELOLW\ HYHQ ZKHQ GLUHFWO\ OLPLWLQJ SUHJQDQW ZRPHQjV UHODWHGl WR D mOHJLWLPDWHl VWDWH LQWHUHVW 6DQ $QWRQLR ,QGHS 6FK 'LVW Y ULJKWV PXFK OHVV KLV 5RGULJXH]  86