Griffin v. Rogers

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

6$1'5$ 0$;:(// *5,)),1 ; 3HWLWLRQHU$SSHOODQW    1R Y  !  6+,5/(< $ 52*(56:DUGHQ  5HVSRQGHQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1Rn*HRUJH&6PLWK'LVWULFWsXGJH $UJXHG6HSWHPEHU 'HFLGHGDQG)LOHG2FWREHU %HIRUH0$57,1&KLHI&LUFXLWsXGJH0225(&LUFXLW sXGJH:,6(0$1'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('6WHSKHQ3+DUGZLFN38%/,&'()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW  7KHOPD 7KRPDV 3ULFH

7KH +RQRUDEOH 7KRPDV $ :LVHPDQ sU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 0LGGOH 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ

  *ULIILQY5RJHUV 1R

2 ) ) ,& (  2 )  7 + (  $ 7 7 2 5 1 ( <  * ( 1 ( 5 $ / &255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR IRU$SSHOOHH21%5,()6WHSKHQ3+DUGZLFN38%/,& '()(1'(5j6 2)),&( 2+,2 38%/,& '()(1'(5 &200,66,21 &ROXPEXV 2KLR IRU $SSHOODQW  7KHOPD 7KRPDV3ULFH2)),&(2)7+($77251(<*(1(5$/ &255(&7,216/,7,*$7,216(&7,21&ROXPEXV2KLR IRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(1 1(/621 0225( &LUFXLW sXGJH  3HWLWLRQHU 6DQGUD0D[ZHOO*ULIILQDVWDWHSULVRQHUILOHGDSHWLWLRQIRU KDEHDV FRUSXV UHOLHI SXUVXDQW WR  86& †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 ZH9$&$7(DQG5(0$1'IRUIXUWKHUSURFHHGLQJVRQWKDW LVVXH ,%$&.*5281' ,Q  D WULDO MXGJH LQ 2KLR VWDWH FRXUW IRXQG 6DQGUD 0D[ZHOO*ULIILQJXLOW\RIFRPSOLFLW\WRDJJUDYDWHGPXUGHU ZLWKVSHFLILFDWLRQVFRPSOLFLW\WRXQODZIXOSRVVHVVLRQRID GDQJHURXVRUGQDQFHFRPSOLFLW\WRJUDQGWKHIWDQGFRPSOLFLW\ WRDJJUDYDWHGUREEHU\ZLWKDILUHDUPVSHFLILFDWLRQ*ULIILQ  *ULIILQY5RJHUV 1R 1R *ULIILQY5RJHUV 

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jV SHWLWLRQ ZRXOG KDYH EHHQ FRQYLFWLRQEHFDPHILQDOLQ WLPHO\%HFDXVH5XOH%PRWLRQVDUHSDUWRI2KLRjVGLUHFW DSSHDO SURFHVV :KLWH Y 6FKRWWHQ  )G   WK 7KH $QWLWHUURULVP DQG (IIHFWLYH 'HDWK 3HQDOW\ $FW &LU FHUW GHQLHG  86   DQG EHFDXVH $('3$EHFDPHHIIHFWLYHRQ$SULODQGSULVRQHUV  86& † G  SURYLGHV WKDW WKH WLPH IRU VHHNLQJ ZKRVH VWDWH FRQYLFWLRQV DOUHDG\ KDG EHFRPH ILQDO ZHUH GLUHFWUHYLHZLQFOXGHVWKHQLQHW\GD\SHULRGIRUILOLQJLQWKH UHTXLUHGWRILOHDQ\SHWLWLRQVIRUKDEHDVFRUSXVUHOLHIZLWKLQ 8QLWHG 6WDWHV 6XSUHPH &RXUW D SHWLWLRQ IRU D ZULW RI RQH\HDURIWKDWGDWH6HH,VKDPY5DQGOH)G FHUWLRUDULWRWKH2KLR6XSUHPH&RXUWWKHWKLUW\GD\SHULRGLQ WK &LU  FHUW GHQLHG  86   ZKLFK3DOPHUZRXOGUHTXLUH*ULIILQWRUHWXUQWRIHGHUDOFRXUW 5HSUHVHQWHGE\WKH2KLR3XEOLF'HIHQGHUjV2IILFH*ULIILQ ZRXOGQRWKDYHEHJXQWRUXQXQWLOQLQHW\GD\VDIWHUWKH2KLR ILOHGIRUKDEHDVFRUSXVUHOLHIRQ$SULO7KHSHWLWLRQ 6XSUHPH&RXUWGLVPLVVHGKHU5XOH%DSSHDO$OWKRXJK ZDV DVVLJQHG WR sXGJH +ROVFKXK  $OWKRXJK LQ KHU LQLWLDO ZHKDYHUHMHFWHGWKHSURSRVLWLRQWKDWWROOLQJIRUWKHQLQHW\GD\ SHWLWLRQ*ULIILQUDLVHGMXVWRQHJURXQGIRUUHOLHIQDPHO\WKH SHULRGLVDYDLODEOHXQGHU†G VHH,VKDPY5DQGOH WULDO FRXUWjV IDLOXUH WR IROORZ mPDQGDWRU\ VWDWXWRU\  )G  WK &LU  VXEVHFWLRQ G  ZKLFK UHTXLUHPHQWVRIDSURFHHGLQJlLQYLRODWLRQRIKHUGXHSURFHVV JRYHUQV GLUHFW DSSHDOV H[SOLFLWO\ LQFOXGHV WKH mWLPH IRU DQG HTXDO SURWHFWLRQ ULJKWV s$ DW  LQ KHU UHSO\ WR WKH VHHNLQJ >GLUHFW 6XSUHPH &RXUW@ UHYLHZl   86& ZDUGHQjV UHWXUQ RI ZULW VKH H[SDQGHG KHU FODLPV  *ULIILQ † G   6HH DOVR %URQDXJK  )G DW  Q DUJXHG WKDW KHU ZDLYHU RI WULDO E\ MXU\ RU E\ D WKUHHMXGJH PDNLQJ FOHDU WKDW ,VKDPjV KROGLQJ ZDV OLPLWHG WR SDQHODVSURYLGHGXQGHU2KLRODZZDVQHLWKHUNQRZLQJQRU † G    $FFRUGLQJO\ WKH 6WDWHjV FRQWHQWLRQ WKDW LQWHOOLJHQW DQG WKDW KHU VHQWHQFH H[FHHGHG WKDW SHUPLWWHG 3DOPHUjV WKLUW\GD\ SHULRG EHJDQ WR UXQ RQ 6HSWHPEHU  XQGHU ODZ  7KH GLVWULFW FRXUW GHWHUPLQHG WKDW WKHVH ZHUH LVPLVSODFHG$VORQJDV*ULIILQFDQVKRZWKDWVKHILOHG mFOHDUO\GLVWLQFWIURPWKHDUJXPHQWWKDWVKHSUHVHQWHGWRWKH KHU $SSOLFDWLRQ WR 5HRSHQ XQGHU 2KLR 5XOH % LQ VWDWHFRXUWVlQRWHGWKDWWKHQHZDUJXPHQWVmDSSHDUWRKDYH FRPSOLDQFHZLWK3DOPHUjVUHTXLUHPHQWIRUHTXLWDEOHWROOLQJ EHHQ SURFHGXUDOO\ GHIDXOWHGl DQG RIIHUHG *ULIILQ WKH DV GLVFXVVHG LQ 3DUW ,,% VXSUD KHU SHWLWLRQ ZDV WLPHO\ RSSRUWXQLW\ WR GHPRQVWUDWH FDXVH DQG SUHMXGLFH EHIRUH WKH ILOHG FRXUW ZRXOG GLVPLVV WKH FODLPV DV SURFHGXUDOO\ GHIDXOWHG s$DW'LVW&W2UGHU*ULIILQDUJXHGWKDW ,,,&21&/86,21 WKHFDXVHRIKHUIDLOXUHWRSUHVHQWWKHDUJXPHQWVLQVWDWHFRXUW ZDVKHUFRXQVHOjVLQHIIHFWLYHDVVLVWDQFH :H WKHUHIRUH 9$&$7( WKH GLVWULFW FRXUWjV RUGHU DQG 5(0$1' IRU IXUWKHU SURFHHGLQJV RQ ZKHWKHU *ULIILQ LV sXGJH+ROVFKXKUXOHGWKDWDOWKRXJKLQHIIHFWLYHDVVLVWDQFH HQWLWOHGWRHTXLWDEOHWROOLQJXQGHU3DOPHU RI DSSHOODWH FRXQVHO FDQ FRQVWLWXWH FDXVH IRU SURFHGXUDO GHIDXOWWKHSHWLWLRQHUPXVWSUHVHQWWKHLQHIIHFWLYHDVVLVWDQFH FODLPLWVHOIWRWKHVWDWHFRXUWVEHIRUHXVLQJLWWRH[FXVHWKH GHIDXOW%HFDXVH*ULIILQKDGQRWEURXJKWWKDWFODLPWRWKH  *ULIILQY5RJHUV 1R 1R *ULIILQY5RJHUV 

VWDWHFRXUWVVKHFRXOGQRW\HWSUHVHQWLWWRWKHIHGHUDOFRXUWLQ GLVPLVVHG KHU DSSHDO  7KH SHULRG GXULQJ ZKLFK KHU VWDWH DKDEHDVSHWLWLRQsXGJH+ROVFKXKFRQFOXGHGm,IVKHZLVKHV DSSOLFDWLRQZDVSHQGLQJZRXOGQRWFRXQWDJDLQVWDQ\VWDWXWH DW VRPH SRLQW WR PDNH VXFK DQ >LQHIIHFWLYH DVVLVWDQFH@ RIOLPLWDWLRQVEHFDXVH5XOH%DSSOLFDWLRQVDUHSDUWRIWKH DUJXPHQW KHUH SHWLWLRQHU PXVW SUHVHQW KHU FODLP RI GLUHFWUHYLHZSURFHVVGXULQJZKLFKWKHVWDWXWHRIOLPLWDWLRQV LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOWRWKHVWDWHFRXUWVls$DW GRHVQRWUXQ6HH%URQDXJKY2KLR)GWK 'LVW&W2UGHU2Q6HSWHPEHUWKH &LU DSSO\LQJ86&†G  $WRWROOWKH FRXUW GHQLHG KHU SHWLWLRQ DQG GLVPLVVHG WKH FDVH ZLWKRXW UXQQLQJ RI WKH VWDWXWH RI OLPLWDWLRQV ZKLOH D 5XOH % SUHMXGLFHIRUKHUIDLOXUHmWRHVWDEOLVKFDXVHIRUKHUSURFHGXUDO DSSOLFDWLRQLVSHQGLQJ GHIDXOWls$DW  6HSWHPEHU   n 2FWREHU   RU $IWHUWKLVGLVPLVVDO*ULIILQILOHGDQ$SSOLFDWLRQWR5HRSHQ 2FWREHU LQVWDWHFRXUWSXUVXDQWWR2KLR5XOHRI$SSHOODWH3URFHGXUH %VRWKDWVKHFRXOGSUHVVWKHLQHIIHFWLYHDVVLVWDQFHFODLP 7KHIRXUWKUHOHYDQWSHULRGLVWKHSHULRGIURP6HSWHPEHU 7KHGDWHRQZKLFKVKHILOHGIRUWKLVSRVWFRQYLFWLRQUHOLHILV  ZKHQ WKH 2KLR 6XSUHPH &RXUW GLVPLVVHG KHU QRW LQ WKH UHFRUG  7KH 6XSUHPH &RXUW RI 2KLR XOWLPDWHO\ 5XOH%DSSHDOWRWKHGDWHRQZKLFK*ULIILQUHILOHGKHU GLVPLVVHGKHUFDVHZLWKRXWRSLQLRQRQ6HSWHPEHU SHWLWLRQ7KLVUHILOLQJRFFXUUHGHLWKHURQ2FWREHUZKHQ VKH ILUVW VXEPLWWHG WKH KDEHDV SHWLWLRQ DQG QRWLFH RI *ULIILQ WKHQ UHWXUQHG WR sXGJH +ROVFKXK ILOLQJ RQ H[KDXVWLRQRIVWDWHUHPHGLHVXQGHUWKHROGFDVHQXPEHUWR 2FWREHUDKDEHDVSHWLWLRQXQGHUKHUSUHYLRXVFDVH sXGJH+ROVFKXKRU2FWREHUZKHQDIWHUsXGJH+ROVFKXK QXPEHU,QKHUUHILOLQJVKHDOHUWHGWKHFRXUWWRWKHIDFWWKDW VWUXFN LW WKH SHWLWLRQ ZDV UHVXEPLWWHG JLYHQ D QHZ FDVH VKHZDVILOLQJLWmXQGHUWKHRULJLQDOFDVHQXPEHUlEHFDXVHLW QXPEHUDQGDVVLJQHGWRsXGJH6PLWK7KHSDUWLHVGLVDJUHH PHUHO\FRQWLQXHGKHUSUHYLRXVDWWDFN6KHDOVRQRWHGWKDW RYHU ZKLFK LV WKH UHOHYDQW GDWH WKH GHWHUPLQDWLRQ LV EHFDXVH KHU SUHYLRXV ILOLQJ KDG EHHQ GLVPLVVHG ZLWKRXW VLJQLILFDQW EHFDXVH 2FWREHU  ZRXOG EH ZLWKLQ 3DOPHUjV SUHMXGLFHWRSHUPLWH[KDXVWLRQWKLVVXEVHTXHQWILOLQJZDVQRW WKLUW\GD\VDIWHUVWDWHFRXUWGLVPLVVDOEXW2FWREHUZRXOG DmVHFRQGRUVXFFHVVLYHlSHWLWLRQSURKLELWHGXQGHU86& EHRXWVLGH3DOPHUjVWKLUW\GD\V † E  s$ DW   ,Q WKLV SHWLWLRQ *ULIILQ DOVR LQFOXGHGQRWLFHRIWKHFODLPVWKDWVKHKDGEURXJKWLQKHUVWDWH :H FRQFOXGH WKDW *ULIILQ UHWXUQHG WR IHGHUDO FRXUW LQ D $SSOLFDWLRQ WR 5HRSHQ  +RZHYHU RQ )ULGD\ 2FWREHU  WLPHO\PDQQHU)LUVWZHQRWHWKDW*ULIILQDFWXDOO\UHWXUQHGWR sXGJH +ROVFKXK RUGHUHG WKH FOHUN WR VWULNH *ULIILQjV QHZ IHGHUDO FRXUW RQ 2FWREHU   $OWKRXJK VKH UHILOHG KHU ILOLQJXQGHUWKHSUHYLRXVFDVHQXPEHUDQGGLUHFWHGWKHFOHUN SHWLWLRQ DQG LWV QRWLFH RI H[KDXVWLRQ RQ 2FWREHU  RQH WRILOHLWZLWKDQHZFDVHQXPEHUDQGDVVLJQLWWRDMXGJHXVLQJ EXVLQHVVGD\DIWHUsXGJH+ROVFKXKVWUXFNWKHSHWLWLRQDVILOHG WKHmRUGLQDU\VHOHFWLRQSURFHVVls$DW'LVW&W2UGHU XQGHUWKHZURQJFDVHQXPEHUQRWKLQJLQsXGJH+ROVFKXKjV sXGJH+ROVFKXKQRWHGWKDWEHFDXVHWKHSUHYLRXV 2FWREHURUGHUGLVPLVVLQJWKHSHWLWLRQDVILOHGXQGHUWKH FDVHKDGFORVHGDQGWKHSHWLWLRQHUKDGRIIHUHGQRJURXQGVWR ZURQJFDVHQXPEHULQGLFDWHVWKDWVKHZDVUHTXLUHGWRUHILOH UHRSHQWKHSUHYLRXVFDVHWKHSHWLWLRQVKRXOGEHILOHGXQGHUD KHUSHWLWLRQ+LVRUGHUGLUHFWVVSHFLILFDOO\WKH&OHUNQRWWKH GLIIHUHQWFDVHQXPEHUDQGWKHGLVWULFWMXGJHWRZKLFKLWZRXOG SHWLWLRQHUWRUHILOHWKHSHWLWLRQXQGHUDQHZFDVHQXPEHU WKHQEHDVVLJQHGVKRXOGFRQVLGHULQGHSHQGHQWO\ZKHWKHUWR sXGJH +ROVFKXKjV RUGHU RI 2FWREHU  WUHDWV WKH RUGHU WR HQWHUWDLQ WKH SHWLWLRQ RU UHMHFW LW DV D VHFRQG RU VXFFHVVLYH VWULNH DV DQ DGPLQLVWUDWLYH DGMXVWPHQW ZLWK QR VXEVWDQWLYH SHWLWLRQ  sXGJH +ROVFKXK VWDWHG WKDW m>W@KH DVVLJQPHQW RU FRQVHTXHQFHV:KHQsXGJH+ROVFKXKH[SOLFLWO\GLUHFWHGWKH QRQDVVLJQPHQWRIDQHZFLYLOQXPEHUWRDFDVHLVREYLRXVO\ &OHUNWRUHILOHWKHSHWLWLRQWKH&OHUNVKRXOGKDYHUHILOHGWKH  *ULIILQY5RJHUV 1R 1R *ULIILQY5RJHUV 

FRXUW ZLWKLQ WKLUW\ GD\V RI GLVPLVVDO IURP VWDWH FRXUW QRW FRQFOXVLYH RQ WKH LVVXH RI ZKHWKHU WKH SHWLWLRQHU LV $FFRUGLQJO\*ULIILQRXJKWQRWEHSHQDOL]HGIRUWKHIDFWWKDW HQWLWOHG WR ILOH D VHFRQG KDEHDV FRUSXV SHWLWLRQl DQG QHLWKHU VKH QRU WKH GLVWULFW FRXUW PRYHG IRU WKH 6WDWH WR m>Q@RWKLQJLQWKLVRUGHULVLQWHQGHGWRFRQYH\DQ\RSLQLRQDV SURYLGHWKHVWDWHFRXUWPDWHULDOUHOHYDQWWRKHUEXUGHQ$QG WRZKHWKHUWKHQHZSHWLWLRQLVRULVQRWDVXFFHVVLYHSHWLWLRQ DOWKRXJK WKH 6WDWH KHUH IDLOHG WR FRPSO\ ZLWK 5XOH jV RUKDVRWKHUZLVHEHHQSURSHUO\ILOHGls$DW UHTXLUHPHQWWKDWLWVXEPLWmDFRS\RIWKHSHWLWLRQHUjVEULHIRQ DSSHDO>RIDQ\VWDWHFRQYLFWLRQRUSRVWFRQYLFWLRQMXGJPHQW@ *ULIILQUHILOHGKHUVHFRQGSHWLWLRQRQ0RQGD\2FWREHU DQGRIWKHRSLQLRQRIWKHDSSHOODWHFRXUWlZHFDQQRWSUHVXPH DQGLWZDVJLYHQDQHZFDVHQXPEHUDQGDVVLJQHGWRsXGJH WKDWWKRVHPDWHULDOVZRXOGGHPRQVWUDWHZKHQ*ULIILQILOHGKHU 6PLWK$IWHUEULHILQJsXGJH6PLWKGLVPLVVHGWKHDFWLRQIRU SHWLWLRQ IDLOXUHWRILOHZLWKLQWKHRQH\HDUOLPLWDWLRQSHULRGIRU†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j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jVVXSHULRUDFFHVVWRWKHUHFRUGDQGH[SOLFLWO\UHTXLUH OLPLWDWLRQVKDGUXQ7KHUHIRUHWKHGLVWULFWFRXUWGLVPLVVHG WKDWWKH6WDWHSURYLGHFHUWDLQHOHPHQWVRIWKHHYLGHQFHWKDWDUH *ULIILQjVSHWLWLRQ UHOHYDQW WR DQ HTXLWDEOH WROOLQJ LQTXLU\  :H UHPDQG KHUH EHFDXVH*ULIILQjVIDLOXUHWRPHHWKHUEXUGHQZLWKUHJDUGWR *ULIILQWLPHO\DSSHDOHGDQGZHKDYHMXULVGLFWLRQXQGHU HTXLWDEOH WROOLQJ PD\ EH D GLUHFW FRQVHTXHQFH RI WKH 86&† UHWURDFWLYHDSSOLFDWLRQRI3DOPHUDQGWKH6WDWHjVIDLOXUHWR SURYLGHPDWHULDOVUHTXLUHGXQGHUWKH5XOHV*RYHUQLQJ† ,,$1$/<6,6 FDVHV :HUHYLHZDGLVWULFWFRXUWjVGLVSRVLWLRQRIDKDEHDVFRUSXV )LUVWKRZHYHUZHFRQWLQXHWKURXJKWKHUHPDLQLQJUHOHYDQW SHWLWLRQGHQRYR6HH+DUULVY6WRYDOO)G SHULRGV WK&LUFHUWGHQLHG86

 )LOLQJ RI 6WDWH $SSOLFDWLRQ WR 5HRSHQ n $$('3$ 6HSWHPEHU %HFDXVH*ULIILQjVKDEHDVSHWLWLRQZDVILOHGDIWHU$('3$ 7KH WKLUG UHOHYDQW SHULRG LV WKH SHULRG IURP WKH GDWH RQ EHFDPHHIIHFWLYHRQ$SULOWKHSURYLVLRQVRIWKDWDFW ZKLFK *ULIILQ ILOHG LQ WKH 2KLR &RXUW RI $SSHDOV KHU DSSO\WRWKLVFDVH$('3$VWDWHVWKDWm>D@\HDUSHULRGRI $SSOLFDWLRQ WR 5HRSHQ SXUVXDQW WR 5XOH % WR OLPLWDWLRQVKDOODSSO\WRDQDSSOLFDWLRQIRUDZULWRIKDEHDV 6HSWHPEHUZKHQWKH2KLR6XSUHPH&RXUWILQDOO\ FRUSXVE\DSHUVRQLQFXVWRG\SXUVXDQWWRWKHMXGJPHQWRID  *ULIILQY5RJHUV 1R 1R *ULIILQY5RJHUV 

6WDWH FRXUWl   86& † G   7KH VWDWXWH RI 6HH 5XOH RIWKH5XOHV*RYHUQLQJ†&DVHV5XOH OLPLWDWLRQVEHJLQVWRUXQIURPWKHODWHVWRIIRXUFLUFXPVWDQFHV SURYLGHV WKDW WKH FRXUW PD\ RUGHU WKH 6WDWH WR SURYLGH ZKLFK LQ WKLV FDVH LV $SULO   WKH GDWH RQ ZKLFK DGGLWLRQDO WUDQVFULSWV IURP WKH VWDWH FRXUW UHFRUG XSRQ WKH $('3$EHFDPHHIIHFWLYH$OWKRXJK*ULIILQILOHGKHULQLWLDO FRXUWjVRZQPRWLRQRUXSRQWKHPRWLRQRIWKHSHWLWLRQHU6HH SHWLWLRQRQ$SULOZLWKWZRGD\VUHPDLQLQJLQKHU LG  :KHQ WKLV LQIRUPDWLRQ LV UHTXLUHG LW LV WKH 6WDWHjV RQH\HDUVWDWXWHRIOLPLWDWLRQVKHUVXEVHTXHQWILOLQJVZHUH UHVSRQVLELOLW\WRSURYLGHLW6HHHJ%XQG\Y:DLQZULJKW ZHOO DIWHU WKH VWDWXWRU\ GHDGOLQH  7KH TXHVWLRQ LV GXULQJ )GQWK&LUFKDVWLVLQJ ZKLFK RI WKRVH VXEVHTXHQW ILOLQJV LI DQ\ WKH VWDWXWH RI 6WDWHIRUQRWVXSSO\LQJWKRVHDVSHFWVRIWKHUHFRUGRQZKLFK OLPLWDWLRQVZDVWROOHGDQGZKHWKHUKHUILQDOILOLQJLQ2FWREHU LW UHOLHG LQ LWV GHIHQVH WR WKH ZULW DQG VWDWLQJ WKDW m>W@KH RIZDVXQWLPHO\:HWDNHHDFKUHOHYDQWSHULRGLQWXUQ REOLJDWLRQ WR FRPH IRUZDUG ZLWK WKH VWDWH FRXUW UHFRUG LV VTXDUHO\XSRQWKHUHVSRQGHQWQRWXSRQWKHSHWLWLRQHUl7KXV %5HOHYDQW3HULRGV LQRUGLQDU\FLUFXPVWDQFHVWKHLQIRUPDWLRQQHFHVVDU\WRVDWLVI\ *ULIILQjV EXUGHQ RI GHPRQVWUDWLQJ WKDW VKH LV HQWLWOHG WR $SULOn6HSWHPEHU HTXLWDEOH WROOLQJ WKDW LV WKH GDWH RQ ZKLFK VKH ILOHG KHU 5XOH%$SSOLFDWLRQWR5HRSHQLQVWDWHFRXUWPLJKWYHU\ 7KHILUVWUHOHYDQWSHULRGLVWKHSHULRGIURP$SULO ZHOOKDYHEHHQVXSSOLHGHLWKHULQWKHGRFXPHQWVSHUWDLQLQJWR ZKHQ*ULIILQILOHGKHULQLWLDOSHWLWLRQZLWKsXGJH+ROVFKXKWR KHUDSSHDOLQWKH5XOH%SURFHHGLQJVZKLFKWKH6WDWHZDV 6HSWHPEHU   ZKHQ sXGJH +ROVFKXK GLVPLVVHG WKH UHTXLUHG WR DWWDFK WR LWV DQVZHU RU LQ GRFXPHQWV IURP WKH SHWLWLRQZLWKRXWSUHMXGLFH7KH6XSUHPH&RXUWjVGHFLVLRQLQ UHFRUGWKDWWKHFRXUWRQLWVRZQPRWLRQRURQWKHSHWLWLRQHUjV 'XQFDQY:DONHU86PDNHVFOHDUWKDWWKH PRWLRQPLJKWKDYHRUGHUHGWKH6WDWHWRSURYLGH IHGHUDOKDEHDVVWDWXWHVGRQRWWROOWKHVWDWXWHRIOLPLWDWLRQV ZKLOH WKH IHGHUDO KDEHDV SHWLWLRQ LV SHQGLQJ  6HFWLRQ /LNH PDQ\ FDVHV WKDW ZHUH GHFLGHG LQ WKH GLVWULFW FRXUWV G SURYLGHVIRUWKHVWDWXWHRIOLPLWDWLRQVWREHWROOHG SULRU WR RXU GHFLVLRQ LQ 3DOPHU EXW DUH EHLQJ GHFLGHG RQ IRUm>W@KHWLPHGXULQJZKLFKDSURSHUO\ILOHGDSSOLFDWLRQIRU DSSHDOIROORZLQJRXUGHFLVLRQLQ3DOPHUWKLVFDVHGRHVQRW 6WDWHSRVWFRQYLFWLRQRURWKHUFROODWHUDOUHYLHZlLVSHQGLQJ SUHVHQWRUGLQDU\FLUFXPVWDQFHV%HFDXVH3DOPHULQWURGXFHV 86&†G ,Q'XQFDQWKH6XSUHPH&RXUWKHOG DQHZSHULRGRIPDQGDWRU\HTXLWDEOHWROOLQJIRUSHWLWLRQHUV WKDWWKLVSURYLGHVIRUWROOLQJRQO\GXULQJWKHSHQGHQF\RIVWDWH ZKRILOHGWKHLUIHGHUDOKDEHDVSHWLWLRQVZLWKLQWKHVWDWXWHRI SURFHHGLQJVQRWIHGHUDOSURFHHGLQJV'XQFDQ86DW OLPLWDWLRQVEXWZHUHIRUFHGWRUHWXUQWRVWDWHFRXUWWRH[KDXVW   $FFRUGLQJO\ VWDWXWRU\ WROOLQJ IRU *ULIILQjV SHWLWLRQ FHUWDLQ FODLPV 3DOPHU UHTXLUHV D SURFHGXUH WKDW ZLOO QRW H[SLUHG RQ $SULO   ZKLOH KHU KDEHDV SHWLWLRQ ZDV DOZD\VEHHDV\WRLPSRVHSRVWKRF1HLWKHUWKHGLVWULFWFRXUW SHQGLQJ *ULIILQQRUWKH6WDWHFRXOGKDYHIRUHVHHQWKDW3DOPHUZRXOG UDLVH WKH TXHVWLRQ RI ZKHWKHU D SHWLWLRQHU UHWXUQHG WR VWDWH 'XQFDQ GRHV QRW IRUHFORVH WKH SRVVLELOLW\ RI HTXLWDEOH WROOLQJ  &RQFXUULQJ LQ 'XQFDQ sXVWLFH 6WHYHQV VXJJHVWHG WKDWDOWKRXJKVWDWXWRU\WROOLQJLVQRWDYDLODEOHGXULQJIHGHUDO SURFHHGLQJVWKHUHDUHWZRRWKHUZD\VLQZKLFKDSHWLWLRQHU QDUUDWLYH VXPPDU\ RI WKH HYLGHQFH PD\ EH VXEPLWWHG ,I WKH ZKRVHVWDWXWHRIOLPLWDWLRQVKDVUXQGXULQJWKHSHQGHQF\RI SHWLWLRQHU DSSHDOHG IURP WKH MXGJPHQW RI FRQYLFWLRQ RU IURP DQ WKHSHWLWLRQHUjVIHGHUDOSHWLWLRQPLJKWREWDLQUHOLHI6HHLGDW DGYHUVH MXGJPHQW RU RUGHU LQ D SRVWFRQYLFWLRQ SURFHHGLQJ D

6WHYHQVsFRQFXUULQJ)LUVWsXVWLFH6WHYHQVZURWH FRS\ RI WKH SHWLWLRQHUjV EULHI RQ DSSHDO DQG RI WKH RSLQLRQ RI WKH DSSHOODWH FRXUW LI DQ\ VKDOO DOVR EH ILOHG E\ WKH UHVSRQGHQW ZLWK WKDWGLVWULFWFRXUWVFRXOGVLPSO\KROGSURFHHGLQJVLQDEH\DQFH WKH DQVZHU ZKLOHWKHSHWLWLRQHUUHWXUQHGWRVWDWHFRXUW:KHQDSHWLWLRQ 5XOH  RI WKH 5XOHV *RYHUQLQJ †  &DVHV  *ULIILQY5RJHUV 1R 1R *ULIILQY5RJHUV 

GHPRQVWUDWHGWKDWVWDWXWHKDVUXQsRKQVRQ%URZQY:D\QH FRQWDLQVDQXQH[KDXVWHGFODLPsXVWLFH6WHYHQVZURWHmWKHUH 6WDWH8QLY1R:/DW WK&LU LVQRUHDVRQZK\DGLVWULFWFRXUWVKRXOGQRWUHWDLQMXULVGLFWLRQ 0DUXQSXEOLVKHGSODFLQJLQ7LWOH9,,FRQWH[W RYHUDPHULWRULRXVFODLPDQGVWD\IXUWKHUSURFHHGLQJVSHQGLQJ WKH EXUGHQ RQ WKH SODLQWLII WR VKRZ WKDW VKH LV HQWLWOHG WR WKH FRPSOHWH H[KDXVWLRQ RI VWDWH UHPHGLHVl  ,G  6HFRQG HTXLWDEOH WROOLQJ  $V 3DOPHU PDNHV FOHDU D SHWLWLRQHU LQ sXVWLFH6WHYHQVLQGLFDWHGWKDWDOWKRXJKVWDWXWRU\WROOLQJZDV *ULIILQjVVLWXDWLRQLVHQWLWOHGWRHTXLWDEOHWROOLQJSURYLGHGWKDW QRW DYDLODEOH HTXLWDEOH WROOLQJ UHPDLQHG DQ RSWLRQ  m>$@ WKH SHWLWLRQHU ILOHG LQ VWDWH FRXUW ZLWKLQ WKLUW\ GD\V RI WKH IHGHUDO FRXUW PLJKW YHU\ ZHOO FRQFOXGH WKDW WROOLQJ LV IHGHUDOFRXUWGLVPLVVDODQGUHWXUQHGWRIHGHUDOFRXUWQRODWHU DSSURSULDWH EDVHG RQ WKH UHDVRQDEOH EHOLHI WKDW &RQJUHVV WKDQWKLUW\GD\VIROORZLQJVWDWHFRXUWH[KDXVWLRQ6HH3DOPHU FRXOG QRW KDYH LQWHQGHG WR EDU IHGHUDO KDEHDV UHYLHZ IRU )G SHWLWLRQHUVZKRLQYRNHWKHFRXUWjVMXULVGLFWLRQZLWKLQWKH \HDULQWHUYDOSUHVFULEHGE\$('3$l,GDW +RZHYHUWKH5XOHV*RYHUQLQJ†&DVHVUHFRJQL]HWKDW WKHVWDWHLVPXFKEHWWHUDEOHWRDFFHVVWKHVWDWHFRXUWUHFRUG 7KLVFRXUWKDVHQGRUVHGsXVWLFH6WHYHQVjVFRQFXUUHQFH,Q 6HH5XOHRIWKH5XOHV*RYHUQLQJ†&DVHV$GYLVRU\ 3DOPHUY&DUOWRQ)GWK&LUZHUXOHG &RPPLWWHH1RWHVm7KHDWWRUQH\JHQHUDOKDVERWKWKH WKDWDSHWLWLRQHUZKRVHRULJLQDOSHWLWLRQZDVILOHGZLWKLQWKH OHJDOH[SHUWLVHDQGDFFHVVWRWKHUHFRUGDQGWKXVLVLQDPXFK RQH\HDUVWDWXWHRIOLPLWDWLRQVEXWZKRVHSHWLWLRQDIWHUWKH EHWWHUSRVLWLRQWRLQIRUPWKHFRXUWRQWKHPDWWHURIH[KDXVWLRQ VWDWXWHRIOLPLWDWLRQVKDGH[SLUHGZDVYROXQWDULO\GLVPLVVHG RI VWDWH UHPHGLHVl  5XOH  LQGLFDWHV WKDW WKH VWDWH PXVW ZLWKRXWSUHMXGLFHWRDOORZH[KDXVWLRQRIVWDWHUHPHGLHVFRXOG DWWDFKWRLWVDQVZHUFRSLHVRIWKHSHWLWLRQHUjVDSSHOODWHEULHIV UHWXUQWRIHGHUDOFRXUWIROORZLQJH[KDXVWLRQSURYLGHGWKDWWKH DQGWKHDSSHOODWHGHFLVLRQVIURPWKHVWDWHFRXUWSURFHHGLQJV SHWLWLRQHUILOHGIRUVWDWHFRXUWUHOLHIDQGUHWXUQHGWRIHGHUDO PXVWDWWDFKSRUWLRQVRIVWDWHFRXUWWUDQVFULSWVWKDWLWGHHPV FRXUWZLWKLQmDEULHIUHDVRQDEOHWLPHOLPLWl6HHLGDW UHOHYDQWDQGPXVWSURYLGHDGGLWLRQDOWUDQVFULSWVRUQDUUDWLYH :H VXJJHVWHG WKDW WKH SHWLWLRQHU VKRXOG ILOH LQ VWDWH FRXUW VXPPDULHVRIVWDWHFRXUWSURFHHGLQJVXSRQWKHFRXUWjVRUGHU ZLWKLQDWLPHSHULRGRImµQRUPDOO\GD\VjlDIWHUWKHIHGHUDO GLVPLVVDO DQG VKRXOG UHWXUQ WR IHGHUDO FRXUW ZLWKLQ mµ GD\VjlRIH[KDXVWLRQ6HHLGDWTXRWLQJDQGUHO\LQJRQ  =DUYHODY$UWX])GG&LUFHUWGHQLHGBB 5XOH  RI WKH 5XOHV *RYHUQLQJ †  FDVHV UHDGV LQ LWV HQWLUHW\ DV IROORZV 86BB6&W VHHDOVR*LEVRQY.OLQJHU 7KH DQVZHU VKDOO UHVSRQG WR WKH DOOHJDWLRQV RI WKH SHWLWLRQ ,Q )GWK&LUVXJJHVWLQJWKDWHTXLWDEOH DGGLWLRQ LW VKDOO VWDWH ZKHWKHU WKH SHWLWLRQHU KDV H[KDXVWHG KLV WROOLQJVKRXOGEHDYDLODEOHmZKHQDSULVRQHUDFWLYHO\SXUVXHV VWDWH UHPHGLHV LQFOXGLQJ DQ\ SRVWFRQYLFWLRQ UHPHGLHV DYDLODEOH MXGLFLDO UHPHGLHV EXW ILOHV D GHIHFWLYH SOHDGLQJ GXULQJ WKH WR KLP XQGHU WKH VWDWXWHV RU SURFHGXUDO UXOHV RI WKH VWDWH DQG VWDWXWRU\ SHULRGl  7KH SHWLWLRQHU LQ 3DOPHU KDG QHLWKHU LQFOXGLQJ DOVR KLV ULJKW RI DSSHDO ERWK IURP WKH MXGJPHQW RI FRQYLFWLRQ DQG IURP DQ\ DGYHUVH MXGJPHQW RU RUGHU LQ WKH SRVW FRQIRUPHGWRWKHmQRUPDOlWKLUW\GD\SHULRGIRUUHWXUQLQJWR FRQYLFWLRQ SURFHHGLQJ 7KH DQVZHU VKDOO LQGLFDWH ZKDW IHGHUDOFRXUWQRUH[SODLQHGKLVGHOD\VRWKLVFRXUWDIILUPHG WUDQVFULSWV RI SUHWULDO WULDO VHQWHQFLQJ DQG SRVWFRQYLFWLRQ WKHGLVWULFWFRXUWjVGLVPLVVDO6HH3DOPHU)GDW SURFHHGLQJV DUH DYDLODEOH ZKHQ WKH\ FDQ EH IXUQLVKHG DQG DOVR ZKDW SURFHHGLQJV KDYH EHHQ UHFRUGHG DQG QRW WUDQVFULEHG 7KHUH 8QGHU WKLV DQDO\VLV ILUVW DGRSWHG LQ 3DOPHU DQG VKDOO EH DWWDFKHG WR WKH DQVZHU VXFK SRUWLRQV RI WKH WUDQVFULSWV VXEVHTXHQWO\DSSOLHGLQ+DUJURYHY%ULJDQRBB)GBB1R DV WKH DQVZHULQJ SDUW\ GHHPV UHOHYDQW 7KH FRXUW RQ LWV RZQ PRWLRQ RU XSRQ UHTXHVW RI WKH SHWLWLRQHU PD\ RUGHU WKDW IXUWKHU   :/  WK &LU $XJ   ZH SRUWLRQV RI WKH H[LVWLQJ WUDQVFULSWV EH IXUQLVKHG RU WKDW FHUWDLQ PXVWGHWHUPLQHZKHWKHUWKHSHWLWLRQHULVHQWLWOHGWRHTXLWDEOH SRUWLRQV RI WKH QRQWUDQVFULEHG SURFHHGLQJV EH WUDQVFULEHG DQG WROOLQJ RI WKH VWDWXWH RI OLPLWDWLRQV IROORZLQJ GLVPLVVDO WR IXUQLVKHG ,I D WUDQVFULSW LV QHLWKHU DYDLODEOH QRU SURFXUDEOH D  *ULIILQY5RJHUV 1R 1R *ULIILQY5RJHUV 

SHUPLWH[KDXVWLRQE\H[DPLQLQJWKHSHWLWLRQHUjVVXEVHTXHQW WKHEXUGHQOLHVRQWKH6WDWHZHPXVWSUHVXPHWKDWVKHILOHG GLOLJHQFHLQH[KDXVWLQJVWDWHUHPHGLHVDQGUHWXUQLQJWRIHGHUDO KHUVWDWHDSSOLFDWLRQLPPHGLDWHO\XSRQWKHGLVPLVVDORIKHU FRXUW$VLQ3DOPHU)GDWDQG+DUJURYH IHGHUDOFODLP :/  DW  ZH DUH IDFHG ZLWK D SHWLWLRQHU ZKRVH SHWLWLRQZDVGLVPLVVHGZLWKRXWSUHMXGLFHIRUIDLOXUHWRH[KDXVW 0RUHWKDQRQHEXUGHQLVUHOHYDQWLQGHWHUPLQLQJZKHWKHU VWDWHUHPHGLHV$VLQ3DOPHUDQG+DUJURYHZHDUHUHYLHZLQJ WKHSHWLWLRQHUKDVFRPSOLHGZLWKWKHVWDWXWHRIOLPLWDWLRQV$V D GLVWULFW FRXUWjV GLVSRVLWLRQ RI VXFK D FDVH SULRU WR RXU LQ RWKHU FRQWH[WV LQYROYLQJ HTXLWDEOH WROOLQJ WKH SDUW\ FODULILFDWLRQWKDWRUGLQDULO\DGLVWULFWFRXUWVKRXOGVWD\VXFK DVVHUWLQJVWDWXWHRIOLPLWDWLRQVDVDQDIILUPDWLYHGHIHQVHKDV XQH[KDXVWHGFODLPVSHQGLQJH[KDXVWLRQUDWKHUWKDQGLVPLVV WKH EXUGHQ RI GHPRQVWUDWLQJ WKDW WKH VWDWXWH KDV UXQ  &I WKHPZLWKRXWSUHMXGLFHIRUWKDWVDPHSXUSRVH:KHWKHUWKH &DPSEHOOY*UDQG7UXQN:55 &R)G GLVWULFW FRXUW GLVPLVVHG WKH SHWLWLRQ IRU IDLOXUH WR H[KDXVW WK&LUQRWLQJWKDWLQWKH)(/$FRQWH[WWKHEXUGHQ ZLWK DQ H[SOLFLW DV LQ WKLV FDVH DQG +DUJURYH  :/ LV ILUVW mRQ WKH GHIHQGDQW WR VKRZ WKDW WKH VWDWXWH RI DW RULPSOLFLWDVLQ3DOPHU)GDW OLPLWDWLRQVKDVUXQl,QPDQ\DUHDVRIODZWKLVZLOOUHTXLUH LQVWUXFWLRQ WR H[KDXVW WKH FODLPV LQ VWDWH FRXUW EHIRUH WKH SDUW\ DVVHUWLQJ WKH GHIHQVH WR LQWURGXFH VXEVWDQWLDO UHWXUQLQJRUVWD\HGWKHSURFHHGLQJVSHQGLQJH[KDXVWLRQWKH HYLGHQFH WR GHPRQVWUDWH IRU H[DPSOH WKDW DV RI D FHUWDLQ FRQVHTXHQFHVIRU*ULIILQVKRXOGEHWKHVDPH$FFRUGLQJO\ GDWHWKHSODLQWLIINQHZRUVKRXOGKDYHNQRZQWKDWWKHFDXVH ZHWXUQWR*ULIILQjVWLPHOLQHVVLQUHWXUQLQJWRVWDWHFRXUWDQG RIDFWLRQKDGDFFUXHG6HHHJ)',&Y$OH[DQGHU)G WKHQEDFNWRIHGHUDOFRXUWWRGHWHUPLQHZKHWKHUVKHPHWWKH WK&LUDSSO\LQJ2KLRODZDQGORRNLQJWR UHTXLUHPHQWVRI3DOPHU ZKHWKHU HYLGHQFH VKRZHG WKDW SODLQWLII KDG FRQVWUXFWLYH NQRZOHGJH RI DFFUXDO  ,Q WKH KDEHDV FRQWH[W WKH SDUW\  6HSWHPEHUn)LOLQJRI6WDWH$SSOLFDWLRQ DVVHUWLQJWKDWWKHVWDWXWHKDVUXQZLOOXVXDOO\EHDEOHWRPHHW WR5HRSHQ WKLVEXUGHQE\SRLQWLQJWRPDWHULDOVDOUHDG\EHIRUHWKHGLVWULFW FRXUWQDPHO\E\SRLQWLQJRXWWKDWWKHSHWLWLRQLWVHOIZDVILOHG 7KH VHFRQG UHOHYDQW SHULRG LV WKH SHULRG IURP DIWHUWKHVWDWXWHKDGUXQ7KH6WDWHLQWKLVFDVHKDVPHWWKLV 6HSWHPEHUZKHQsXGJH+ROVFKXKGLVPLVVHGWKHILUVW EXUGHQ SHWLWLRQWRWKHGDWHRQZKLFK*ULIILQILOHGLQWKH2KLR&RXUW RI$SSHDOVKHU$SSOLFDWLRQWR5HRSHQSXUVXDQWWR2KLR5XOH 7KHQH[WUHOHYDQWEXUGHQLVWKHEXUGHQRIGHPRQVWUDWLQJDQ RI$SSHOODWH3URFHGXUH%7KHUHFRUGEHIRUHXVGRHVQRW HQWLWOHPHQWWRHTXLWDEOHWROOLQJ$VZHKDYHVXJJHVWHGEXW LQGLFDWHZKHQ*ULIILQILOHGKHU$SSOLFDWLRQWR5HRSHQVRWKH KDYHQRWXQWLOQRZPDGHH[SOLFLWLQWKHKDEHDVFRQWH[WWKH TXHVWLRQ RI ZKLFK SDUW\ EHDUV WKH UHOHYDQW EXUGHQ LV SHWLWLRQHUEHDUVWKHXOWLPDWHEXUGHQRISHUVXDGLQJWKHFRXUW LPSRUWDQW,IWKHEXUGHQOLHVRQ*ULIILQLQWKHDEVHQFHRIDQ\ WKDWKHRUVKHLVHQWLWOHGWRHTXLWDEOHWROOLQJ6HH'XQODSY HYLGHQFH ZH PXVW SUHVXPH WKDW VKH GLG QRW ILOH KHU 8QLWHG6WDWHV)GWK&LUVHHDOVR DSSOLFDWLRQZLWKLQWKHWKLUW\GD\VUHTXLUHGXQGHU3DOPHU,I HJ 6PLWK Y 'XQFDQ  )G   WK &LU  m2QFH 6PLWK ZDV QRWLILHG WKDW KLV SHWLWLRQ ZDV VXEMHFW WR GLVPLVVDOEDVHGRQ$('3$jVVWDWXWHRIOLPLWDWLRQVDQGWKH  UHFRUGLQGLFDWHGWKDW6PLWKjVSHWLWLRQIHOORXWVLGHWKHRQH\HDU 2I WKH WZR RSWLRQV WKDW sXVWLFH 6WHYHQV VXJJHVWHG LQ KLV 'XQFDQ WLPHSHULRG6PLWKKDGWKHEXUGHQRIGHPRQVWUDWLQJWKDWWKH FRQFXUUHQFH LW LV SUHIHUDEOH IRU GLVWULFW FRXUWV WR VWD\ SURFHHGLQJV SHQGLQJ H[KDXVWLRQ 6HH +DUJURYH   :/  DW  :H DOVR QRWH WKDW OLPLWDWLRQSHULRGZDVVXIILFLHQWO\WROOHGl&I&DPSEHOO GLVWULFW FRXUWV WKDW GLVPLVV FODLPV SHQGLQJ H[KDXVWLRQ VKRXOG GLVPLVV RQO\ )GDWUHTXLULQJLQ)(/$FRQWH[WWKDWSODLQWLIIVKRZ WKH XQH[KDXVWHG FODLPV DQG VKRXOG UHWDLQ MXULVGLFWLRQ RYHU DQ\ H[KDXVWHG HQWLWOHPHQW WR HTXLWDEOH WROOLQJ RQFH GHIHQGDQW KDV FODLPV 6HH +LOO Y $QGHUVRQ  )G   WK &LU