McLean v. 988011 Ontario Ltd.

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  0F/HDQHWDOY 1RV 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

2QWDULR/WGHWDO (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

WKHLUQHJOLJHQFHWKHRU\WRDMXU\7KHMXGJPHQWRIWKHGLVWULFW FRXUWLVWKHUHIRUH5(9(56('DQGWKHFDVHLVUHPDQGHGIRU 81,7('67$7(6&28572)$33($/6 WULDO )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

 ; s2+1 ' 0&/($13HUVRQDO  5HSUHVHQWDWLYHRIWKH(VWDWH   1RV RI/LVD,UHQHsLJJHQV  'HFHDVHG !  3ODLQWLII$SSHOODQW   Y   217$5,2 /7'GED   3/$1( 3(5)(&7,21 :,//,$0  $//(1 %$// (17(535,6(6  /7' GED% % $,5&5$)7  'HIHQGDQWV$SSHOOHHV      $/%(57$ 0 s,**(16DQG  '$9,' %8&.1(5DV3HUVRQDO  &R5HSUHVHQWDWLYHVRI%ULDQ  (sLJJHQVGHFHDVHGDQG  .DOHEsLJJHQVDPLQRU  GHFHDVHG   3ODLQWLIIV$SSHOODQWV   Y   

  0F/HDQHWDOY 1RV 1RV 0F/HDQHWDOY  2QWDULR/WGHWDO 2QWDULR/WGHWDO

2QWKHRWKHUKDQG0LFKLJDQjVFRXUWVKDYHDOORZHGDMXU\ 3,3(5 $,5&5$)7  WR FRQVLGHU D UHDVRQDEOH K\SRWKHVLV HYHQ ZKHQ VXSSRUWHG &25325$7,21HWDO  ODUJHO\ E\ FLUFXPVWDQWLDO HYLGHQFH  ,Q7D\ORU Y 0LFKLJDQ 'HIHQGDQWV  3RZHUDFDVHLQVWUXFWLYHE\FRPSDULVRQWKHGHFHGHQWVGLHG  LQ DQ H[SORVLRQ WKDW DOVR GHVWUR\HG FUXFLDO HYLGHQFH  7KH  SODLQWLIIVWKHRUL]HGWKDWDJDVPDLQQHDUWKHEXLOGLQJEURNH 217$5,2 /7'GED  3/$1( 3(5)(&7,21 OHDNLQJJDVLQWRDVHZDJHSLSHZKLFKWKHQIORZHGWKURXJKD  VHZDJHYHQWLQWRWKHEXLOGLQJjVDWWLFZKHUHLWFROOHFWHGDQG 'HIHQGDQW$SSHOOHH  H[SORGHG7KHVWDWHDSSHOODWHFRXUWDIILUPHGWKHMXU\jVYHUGLFW 1 IRUWKHSODLQWLIIVGHVSLWHWKHFLUFXPVWDQWLDOQDWXUHRIWKHFDVH $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW EHFDXVH LW FRQFOXGHG WKDW D MXU\ FRXOG UHDVRQDEO\ KDYH IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW EHOLHYHG WKH SODLQWLIIVj WKHRU\ DQG LW ZDV VXIILFLHQWO\ 1RVn3DXO'%RUPDQ VXSSRUWHGE\WKHHYLGHQFH 'LVWULFWsXGJH $OWKRXJK WKH HYLGHQFH LQ VHYHUDO DUHDV RI WKLV FDVH LV $UJXHGsXQH FRQIOLFWLQJWKHUHZDVVXIILFLHQWHYLGHQFHWRSRLQWWRD ORJLFDOVHTXHQFHRIFDXVHDQGHIIHFWLIEHOLHYHGE\WKH 'HFLGHGDQG)LOHG$XJXVW MXU\  ,Q D FDVH VXFK DV WKLV RQH ZKHUH PXFK RI WKH HYLGHQFH ZDV GHVWUR\HG WKH IDFW WKDW WKHUH PD\ KDYH %HIRUHs21(6%2**6DQG0225(&LUFXLWsXGJHV EHHQ RWKHU SODXVLEOH WKHRULHV RI FDXVH DQG HIIHFW VXSSRUWHGE\WKHHYLGHQFHGRHVQRWMXVWLI\DUHYHUVDORI BBBBBBBBBBBBBBBBB WKHMXU\jVGHWHUPLQDWLRQ

&2816(/ 7D\ORUY0LFKLJDQ3RZHU&R1:G0LFK &W $SS  +HUH WKH SODLQWLIIV KDYH DOVR SUHVHQWHG D $5*8('  %DUEDUD + *ROGPDQ /23$7,1 0,//(5 SODXVLEOH WKHRU\ VXSSRUWHG E\ ZKDW HYLGHQFH LV DYDLODEOH )5(('0$1%/8(6721( +(56.29,&6RXWKILHOG ZKLFKLIEHOLHYHGE\WKHMXU\FRXOGHVWDEOLVKQHJOLJHQFHRQ 0LFKLJDQIRU$SSHOODQWLQ&DVH1RsDQHW&DOODKDQ WKHSDUWRIWKHGHIHQGDQWV %DUQHV.2+/6(&5(67:$5'/(/<1&+&/$5. +$03721 )DUPLQJWRQ +LOOV 0LFKLJDQ IRU $SSHOOHHV 9 21 %5,()  %DUEDUD + *ROGPDQ /23$7,1 0,//(5 )5(('0$1%/8(6721( +(56.29,&6RXWKILHOG 7KH GLVWULFW FRXUW HUUHG E\ WUHDWLQJ 3RSSjV GHSRVLWLRQ 0LFKLJDQ $QGUHZ 6 )RZOHU %$56.<  )2:/(5 WHVWLPRQ\DQGWKH176%ILQGLQJVDVGHILQLWLYHZKHUHDVWKH\ %LUPLQJKDP 0LFKLJDQ IRU $SSHOODQWV  sDQHW &DOODKDQ DUHFRQWUDGLFWHGE\H[SHUWWHVWLPRQ\DQGPD\EHFKDOOHQJHG %DUQHV.2+/6(&5(67:$5'/(/<1&+&/$5. DWWULDO7KHFRXUWWKXVGLGQRWYLHZWKHHYLGHQFHLQWKHOLJKW +$03721)DUPLQJWRQ+LOOV0LFKLJDQ6FRWW57RUSH\ PRVW IDYRUDEOH WR WKH SODLQWLIIV LQ JUDQWLQJ VXPPDU\ s$))(5$,77+(8(5 :(,66'HWURLW0LFKLJDQIRU MXGJPHQW3ODLQWLIIVjH[SHUWWHVWLPRQ\LVVXIILFLHQWO\URRWHG $SSHOOHHV LQWKHDYDLODEOHHYLGHQFHWRPDNHRXWDUHDVRQDEOHWKHRU\RI FDXVDWLRQ7KXVSODLQWLIIVVKRXOGKDYHEHHQDOORZHGWRWDNH  0F/HDQHWDOY 1RV 1RV 0F/HDQHWDOY  2QWDULR/WGHWDO 2QWDULR/WGHWDO

ZKHHO FDPH RII LQ WKH FUDVK  ,I HLWKHU WKHRU\ DORQH ZHUH BBBBBBBBBBBBBBBBB DGHTXDWH WR GHPRQVWUDWH QHJOLJHQFH WKHQ WKH WZR WRJHWKHU ZRXOGQRWSUHYHQWDGHPRQVWUDWLRQRIQHJOLJHQFHHYHQWKRXJK 23,1,21 ERWK FRXOG QRW EH WUXH  +HUH WRR HDFK H[SHUW SURYLGHV BBBBBBBBBBBBBBBBB HYLGHQFHRIQHJOLJHQFHHYHQWKRXJKERWKDFFRXQWVFDQQRWEH WUXHLQWKHLUHQWLUHW\ %2**6&LUFXLWsXGJH7KLVQHJOLJHQFHDFWLRQDULVHVRXW RI WKUHH GHDWKV LQ WKH FUDVK RI D SULYDWH SODQH  0LFKLJDQ ,QWKUHHSUHYLRXVFDVHVXQGHU0LFKLJDQODZZKHUHH[SHUW UHVLGHQW %ULDQ sLJJHQV SXUFKDVHG D XVHG 3LSHU &KHURNHH WHVWLPRQ\KDVEHHQGHHPHGVSHFXODWLYHDVDPDWWHURIODZWKH DLUSODQHLQ0DUFKIURP$PHULFDQ)OLJKW 7HFKQRORJ\ IDFWVZHUHYHU\GLIIHUHQW,Q6NLQQHUWKHSODLQWLIIjVGHFHGHQW $IWHUSXUFKDVLQJWKH\HDUROGSODQHs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jVWKHRU\ZDVGLVPLVVHGDVFRQMHFWXUH6HH6NLQQHU  KRXUV UHSDLULQJ WKH ZLQJ WLSV FRZOLQJV DQG IXVHODJH  1:G   /LNHZLVH LQ 3RPHOOD WKH GLVWULFW FRXUW $OOHQ %DOO DQG 'RQ :KLWH RI % % $LUFUDIW LQVSHFWHG DQG JUDQWHG VXPPDU\ MXGJPHQW WR WKH GHIHQGDQW EHFDXVH WKH FHUWLILHGWKHDLUFUDIWEHFDXVH3ODQH3HUIHFWLRQZDVQRWLWVHOI H[SHUWjVWKHRU\WKDWWKHEXVFRXOGKDYHDYRLGHGFROOLGLQJZLWK DQDSSURYHGPDLQWHQDQFHRUJDQL]DWLRQ WKH FDU LQ WKH DFFLGHQW DW LVVXH ZDV EDVHG RQ DQ DUELWUDU\ FRHIILFLHQWRIIULFWLRQIRUWKHVQRZ\URDGVXUIDFHZKLFKZDV sLJJHQVSLFNHGXSWKHILQLVKHGSODQHRQ$SULODQG XQVXSSRUWHG E\ DQ\ HYLGHQFH DQG WKH WKHRU\ DVVXPHG IOHZLWWR5RPHR0LFKLJDQZKHUHKLVZLIH/LVDsLJJHQVDQG XQLIRUPO\ ZHW SDYHPHQW LQ WKH IDFH RI FRQWUDGLFWLQJ WKHLUVRQ.DOHEsLJJHQVMRLQHGKLPIRUDWULSWR/HHVEXUJ H\HZLWQHVV WHVWLPRQ\  6HH 3RPHOOD  ) 6XSS  9LUJLQLD  6LQFH REWDLQLQJ KLV YLVXDO IOLJKW UXOHV SLORWjV )LQDOO\LQ=HWWOHY+DQG\0DQXIDFWXULQJ&R)G OLFHQVHsLJJHQVKDGDSSUR[LPDWHO\IOLJKWKRXUVLQFOXGLQJ WK&LUUHOLHG RQ E\WKHGLVWULFWFRXUWWKLV WZRKRXUVIO\LQJWKHPDNHDQGPRGHORIKLVSODQH2QWKH FRXUW XSKHOG D VXPPDU\ MXGJPHQW DZDUG WR WKH GHIHQGDQW HYHQLQJRIWKHFUDVKsLJJHQVGLGQRWILOHDIOLJKWSODQWKRXJK PDQXIDFWXUHUVRIDSRZHUZDVKHUWKDWKDGHOHFWURFXWHGWKH LQVWUXPHQWPHWHRURORJLFDOFRQGLWLRQVSUHYDLOHGsLJJHQVIOHZ SODLQWLIIjVGHFHDVHGVRQLQDQXQZLWQHVVHGDFFLGHQW([SHUW WR (O\ULD 2KLR IRU UHIXHOLQJ WKHQ SURFHHGHG WRZDUG RSLQLRQVRQYDULRXVSUREDELOLWLHVQRWZLWKVWDQGLQJWKHUHZDV /HHVEXUJ  $W DSSUR[LPDWHO\  DP WKH &OHYHODQG $LU QRSURRIWKDWDGHVLJQLQFRUSRUDWLQJDSODVWLFUDWKHUWKDQD 7UDIILF&RQWURO&HQWHUSURYLGHGDWUDIILFDGYLVRU\WRsLJJHQV PHWDO KDQGOH ZRXOG KDYH SUHYHQWHG WKH DFFLGHQW  7KH WRZKLFKKHUHVSRQGHG$WDPWKHFHQWHUORVWUDGLRDQG GHFHGHQWKDGSOXJJHGWKHSRZHUZDVKHULQWRDQXQJURXQGHG UDGDU FRQWDFW ZLWK sLJJHQVjV SODQH  /DWHU WKDW PRUQLQJ SDUWLDOO\VWULSSHGH[WHQVLRQFRUGDQGWKHFRXUWFRQFOXGHGWKDW LQYHVWLJDWRUVIURPWKH1DWLRQDO7UDQVSRUWDWLRQ6DIHW\%RDUG WKHUHZDVQRHYLGHQFHWKDWWKHHOHFWULFLW\KDGIORZHGWKURXJK 176%DQGWKH2KLR6WDWH+LJKZD\3DWUROIRXQGSLHFHVRI WKHKDQGOHLQWKHFRXUVHRIHOHFWURFXWLQJWKHGHFHGHQW+H sLJJHQVjV SODQH VFDWWHUHG LQ D PLOHORQJ SDWK QHDU 6DOHP PLJKWKDYHWRXFKHGWKHSRZHUZDVKHUFDELQHWRUPLJKWKDYH 2KLR7KHDLUFUDIWDOOHJHGO\EURNHDSDUWLQIOLJKWDQGFUDVKHG EHHQKROGLQJRQWRDGLIIHUHQWSDUWRIWKHZDVKHUDOWRJHWKHU NLOOLQJDOOWKUHHRFFXSDQWV'HIHQGDQWVDUJXHWKDWWKHVHIDFWV 6HHLGDW SHUPLWDQLQIHUHQFHWKDWSLORWHUURUFDXVHGWKHFUDVKZKLOH  0F/HDQHWDOY 1RV 1RV 0F/HDQHWDOY  2QWDULR/WGHWDO 2QWDULR/WGHWDO

SODLQWLIIVFODLPWKDWQHJOLJHQWVHUYLFLQJRIWKHFUDIWE\3ODQH GHIHQGDQWVjQHJOLJHQFHZDVWKHSUREOHP3ODLQWLIIVDQDORJL]H 3HUIHFWLRQFDXVHGWKHFUDVK WR D :DVKLQJWRQ VWDWH FDVH ZKHUHLQ RQH H[SHUW ZLWQHVV LGHQWLILHGDPDQXIDFWXULQJGHIHFWDQGVWDWHGWKDWWKHHIIHFWRI )ROORZLQJGLVFRYHU\WKHGLVWULFWFRXUWJUDQWHGGHIHQGDQWVj WKH GHIHFW FRXOG KDYH EHHQ DYRLGHG ZLWK D FKDQJH LQ WKH PRWLRQIRUVXPPDU\MXGJPHQWLQDQ$XJXVWRUGHU GHVLJQZKLOHDQRWKHUH[SHUWZLWQHVVIRXQGDGLIIHUHQWGHIHFW UHDVRQLQJWKDWSODLQWLIIVKDGIDLOHGWRHVWDEOLVKWKHFDXVDWLRQ LQ WKH VDPH SDUW DQG DOVR WHVWLILHG WKDW D VDIHU GHVLJQ ZDV HOHPHQWVXIILFLHQWO\WRWDNHWKHLUQHJOLJHQFHDFWLRQWRDMXU\ SRVVLEOH2QDSSHDOWKHFRXUWGHQLHGWKHGHIHQGDQWjVFODLP 6SHFLILFDOO\ WKH FRXUW KHOG WKDW WKH SODLQWLIIVj WZR H[SHUW WKDWWKHHYLGHQFHZDVLQVXIILFLHQWIRUEHLQJHTXDOO\FRQVLVWHQW ZLWQHVVHVFRQWUDGLFWHGHDFKRWKHUDVWRWKHFDXVHRIWKHFUDVK ZLWKFRQWUDGLFWRU\K\SRWKHVHV UHOLHG RQ FLUFXPVWDQWLDO HYLGHQFH ZKRVH IDFWXDO EDVLV ZDV XQGHUPLQHG RQ NH\ SRLQWV E\ GHIHQGDQWVj HYLGHQFH DQG :KLOHLWLVREYLRXVSODLQWLIIVjWKHRULHVDUHLQFRQVLVWHQW RIIHUHGDQH[SODQDWLRQIRUWKHFUDVKQRPRUHSODXVLEOHWKDQ ZLWK HDFK RWKHU WR WKH H[WHQW WKDW LI RQH WKHRU\ ZDV WKDWRIWKHGHIHQGDQWV+HQFHWKHGLVWULFWFRXUWKHOGWKDWWKH FRUUHFW WKH RWKHU FRXOG QRW EH FRUUHFW WKH\ DUH QRW SODLQWLIIVGLGQRWGHPRQVWUDWHVXEVWDQWLDOHYLGHQFHIRUPLQJD LQFRQVLVWHQWZLWKWKHPDLQIDFWWREHHVWDEOLVKHG,WLV UHDVRQDEOH EDVLV IRU WKH LQIHUHQFH WKDW QHJOLJHQFH E\ WKH RQO\ QHFHVVDU\ WKDW WKH FLUFXPVWDQFHV SURYHG EH GHIHQGDQWV FDXVHG WKH LQMXU\  :H UHYHUVH DQG UHPDQG IRU FRQVLVWHQW ZLWK HDFK RWKHU DQG OHDG ZLWK UHDVRQDEOH WULDO FHUWDLQW\WRWKHIDFWDVVHUWHG>7@KHRULHVFDQQRWEH VDLGWREHFRQWUDGLFWRU\ZKHQWKH\FRXOGORJLFDOO\OHDG , ZLWKUHDVRQDEOHFHUWDLQW\WRWKHXOWLPDWHIDFWDVVHUWHG 7KLVFRXUWUHYLHZVDJUDQWRIVXPPDU\MXGJPHQWGHQRYR /DPSKLHDUY6NDJLW&RUS3G:DVK$SS XVLQJWKHVDPH5XOHFVWDQGDUGDVWKHGLVWULFWFRXUW6HH /HDYLQJDVLGH:LONHQjVGHIHUULQJWR'RQKDPRQWKH &R[Y.HQWXFN\'HSjWRI7UDQVS)GWK&LU IOXWWHU LVVXH DQG WKH IDFW WKDW ERWK H[SHUWV ZRXOG QRW  FLWLQJ +DQVDUG Y %DUUHWW  )G  WK &LU QHFHVVDULO\KDYHEHHQSUHVHQWHGDWWULDOSODLQWLIIVOLNHQWKLV   6XPPDU\ MXGJPHQW LV DSSURSULDWH ZKHUH mWKH FDVH WR /DPSKLHDU LQ WKDW ERWK H[SHUWV SRLQW WR WKH VDPH SOHDGLQJV GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG XOWLPDWH IDFW DQG HLWKHUjV WHVWLPRQ\ VXSSRUWV D ILQGLQJ RI DGPLVVLRQVRQILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZ GHIHQGDQWVjQHJOLJHQFHZLWKUHDVRQDEOHFHUWDLQW\(YHQLIWKH WKDWWKHUHLVQRJHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDW WKHRULHVRIFDXVDWLRQKHUHDUHHTXDOO\OLNHO\WKH\ERWKSRLQW WKHPRYLQJSDUW\LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl WR WKH VDPH FXOSULW  $W WULDO DV WKH SODLQWLIIV DUJXH WKH )(' 5 &,9 3 F  ,Q GHFLGLQJ D PRWLRQ IRU VXPPDU\ GHIHQGDQWVZRXOGEHIUHHWRWU\WRFDVWGRXEWRQWKHIOXWWHU MXGJPHQWWKLVFRXUWYLHZVWKHIDFWXDOHYLGHQFHDQGGUDZVDOO WKHRU\RUWKHLUUROHLQFDXVLQJWKHIOXWWHUEXWWKHGLVWULFWFRXUW UHDVRQDEOHLQIHUHQFHVLQIDYRURIWKHQRQPRYLQJSDUW\6HH VKRXOGQRWKDYHGLVSRVHGRIWKHFDVHVXPPDULO\ 1RUWKODQG,QV&RY*XDUGVPDQ3URGV,QF)G WK&LU7RSUHYDLOWKHQRQPRYDQWPXVWVKRZ 2QHFDQLPDJLQHDFDVHZKHUHH[SHUWVGLIIHUDVWRWKHFDXVH VXIILFLHQWHYLGHQFHWRFUHDWHDJHQXLQHLVVXHRIPDWHULDOIDFW RIDQDXWRPRELOHDFFLGHQW7KHILUVWH[SHUWPLJKWFRQFOXGH 6HH.OHSSHUY)LUVW$P%DQN)GWK&LU WKHFUDVKKDSSHQHGZKHQWKHGHIHFWLYHULJKWZKHHOFDPHRII  FLWLQJ &HORWH[ &RUS Y &DWUHWW  86   DQG WKDW WKH OHIW ZKHHO FDPH RII LQ WKH FUDVK  7KH VHFRQG $PHUHVFLQWLOODRIHYLGHQFHLVLQVXIILFLHQWEHFDXVH H[SHUWPLJKWFRQFOXGHFRQWUDULZLVHWKDWWKHFUDVKKDSSHQHG mWKHUHPXVWEHHYLGHQFHRQZKLFKWKHMXU\FRXOGUHDVRQDEO\ ZKHQ WKH GHIHFWLYH OHIW ZKHHO FDPH RII DQG WKDW WKH ULJKW  0F/HDQHWDOY 1RV 1RV 0F/HDQHWDOY  2QWDULR/WGHWDO 2QWDULR/WGHWDO

QHJOLJHQFH RQ 3ODQH 3HUIHFWLRQjV SDUW DQG WKDW WKH UXGGHU ILQGIRUWKH>QRQPRYDQW@l,ELGTXRWLQJ$QGHUVRQY/LEHUW\ KRUQEDODQFHZHLJKWZDVQRWIRXQGXSVWUHDPRIWKHFUDVKDV /REE\,QF86 'RQKDPFUXFLDOO\DVVXPHV ,, 3ODLQWLIIVPDLQWDLQWKDWZKHUHYHUWKHUXGGHUKRUQEDODQFH ZHLJKW ODQGHG WKH PHUH IDFW WKDW LW VHSDUDWHG IURP WKH 7R HVWDEOLVK D SULPD IDFLH FDVH RI QHJOLJHQFH XQGHU DLUFUDIWnWKDWWKHMRLQWFRQQHFWLQJWKHZHLJKWWRWKHDLUFUDIW 0LFKLJDQ ODZ SODLQWLIIV PXVW SURYH  WKDW WKH GHIHQGDQW IDLOHGnLQGLFDWHVDSUREOHPZLWKLWVLQVWDOODWLRQ$FFRUGLQJ RZHGDGXW\WRWKHSODLQWLIIVWKDWWKHGHIHQGDQWEUHDFKHG WR'RQKDPLQRUGHUIRUWKHSDUWWRKDYHIDLOHG WKDW GXW\  WKDW WKH GHIHQGDQWjV EUHDFK ZDV D SUR[LPDWH FDXVH RI WKH SODLQWLIIVj GDPDJHV DQG  WKDW WKH SODLQWLIIV \RX ZRXOG KDYH WR KDYH H[FHHGHG  JjV RQ WKLV VXIIHUHGGDPDJH6HH6ZDQY:HGJZRRG&KULVWLDQ

6FKHGOEDXHU Y &KULV&UDIW &RUS  1:G   LQEDODQFLQJWKHVWDELODWRUFRXOGPDNHDSODQHKDUGHUWRIO\,W 0LFK7KHSODLQWLIIVFRQWHQGWKDWWKRXJKWKHH[SHUWV PD\DGGLWLRQDOO\EHQRWHGWKDW:LONHQVWDWHGWKDWXQFDOLEUDWHG GLIIHUHGRQZKHUHWKHSUREOHPRULJLQDWHGERWKSUHVHQWHGD VFDOHVDUHDXWRPDWLFDOO\DVVXPHGWREHRXWRIFDOLEUDWLRQWKDW ORJLFDO VHTXHQFH RI FDXVH DQG HIIHFW EHWZHHQ 3ODQH VRPHUHSODFHPHQWSDUWVZHUHQRWFHUWLILHGDQGWKDWVXVSHFW 3HUIHFWLRQjV QHJOLJHQFH DQG WKH DHURG\QDPLF LQVWDELOLW\ SDUWV FRXOG DIIHFW WKH EDODQFH RI WKH DLUFUDIW  :LONHQjV NQRZQDVIOXWWHUWKDWHDFKFRQFOXGHVFDXVHGWKHFUDVK WHVWLPRQ\PD\QRWFRQFOXVLYHO\GHPRQVWUDWHWKDWGHIHQGDQWV FDXVHGWKHFUDVKEXWKLVFRQFOXVLRQWRWKDWHIIHFWLVJURXQGHG m>$@QH[SHUWjVRSLQLRQPXVWEHVXSSRUWHGE\µPRUHWKDQ LQUHFRUGHYLGHQFH VXEMHFWLYHEHOLHIDQGXQVXSSRUWHGVSHFXODWLRQjDQGVKRXOGEH VXSSRUWHG E\ µJRRG JURXQGVj EDVHG RQ ZKDW LV NQRZQl 7XUQLQJ QH[W WR 'RQKDPjV WHVWLPRQ\ WKH GLVWULFW FRXUW 3RPHOODY5HJHQF\&RDFK/LQHV/WG)6XSS GHWHUPLQHG WKDW LW GLG QRW HVWDEOLVK D JHQXLQH LVVXH RI ('0LFKTXRWLQJ'DXEHUWY0HUUHOO'RZ3KDUPV FDXVDWLRQIRUWULDOEHFDXVHLWWRRODFNHGUHFRUGVXSSRUW7KH ,QF  86     7KH H[SHUWjV FRQFOXVLRQV GLVWULFWFRXUWGLVFRXQWHG'RQKDPjVWHVWLPRQ\WKDWWKHUXGGHU UHJDUGLQJFDXVDWLRQPXVWKDYHDEDVLVLQHVWDEOLVKHGIDFWDQG KRUQEDODQFHZHLJKWFDPHRIIEHFDXVHWKH176%LQYHVWLJDWRU FDQQRWEHSUHPLVHGRQPHUHVXSSRVLWLRQV6HH6NLQQHU KDGLGHQWLILHGWKDWSDUWDVDWDLOWLSIDLULQJ3ODLQWLIIVUHVSRQG 1:G DW   $Q H[SHUWjV RSLQLRQ ZKHUH EDVHG RQ WKDW176%LQYHVWLJDWRUsHII*X]]HWWLjVSULPDU\H[SHUWLVHLVLQ DVVXPHGIDFWVPXVWILQGVRPHVXSSRUWIRUWKRVHDVVXPSWLRQV KHOLFRSWHUVWKDW'RQKDPjVREVHUYDWLRQVDERXWZKHUHSDUWVRI LQWKHUHFRUG6HH6KDZY6WUDFNKRXVH)G WKHSODQHZHUHIRXQGDOVRVXSSRUWHGKLVWKHVLVDQGILQDOO\WKDW G&LU+RZHYHUPHUHmZHDNQHVVHVLQWKHIDFWXDO 'RQKDPjVIL[HGZLQJFUDIWH[SHUWLVHLQLGHQWLI\LQJWKHSDUW EDVLVRIDQH[SHUWZLWQHVVjRSLQLRQEHDURQWKHZHLJKWRI ZDVIRUDMXU\WRZHLJK7KHGLVWULFWFRXUWFKDUDFWHUL]HGWKLV WKHHYLGHQFHUDWKHUWKDQRQLWVDGPLVVLELOLW\l8QLWHG6WDWHV UHVSRQVH DV mQRW UHIXW>LQJ@ 'HIHQGDQWjV DVVHUWLRQ WKDW WKH Y/(&RRNH&R)GWK&LU FRPSRQHQWZDVUHDOO\WKHWDLOWLSIDLULQJl,QVKRUWERWKWKH GLVWULFW FRXUW DQG WKH GHIHQGDQWV WUHDW WKH 176%jV ,,, GHWHUPLQDWLRQ DV GLVSRVLWLYH DQG WKHUHIRUH WUHDW 'RQKDPjV H[SHUWFRQFOXVLRQDVEDVHGXSRQDVVXPSWLRQVQRWVXSSRUWHG 7KHDLUFUDIWVHFWLRQLQFRQWURYHUV\LQWKLVFDVHZDVWKHWDLO E\WKHIDFWXDOUHFRUG VHFWLRQNQRZQFROOHFWLYHO\DVWKHHPSHQQDJH,WLQFOXGHVWKH YHUWLFDO VWDELOL]HU RU ILQ WKH UXGGHU DQG WKH KRUL]RQWDO 'RQKDPDGPLWWHGWKDWKHGRHVQRWNQRZVSHFLILFDOO\ZKDW VWDELOL]HU RU VWDELODWRU WKH HQGV RI ZKLFK DUH FDOOHG 3RSSGLGRUGLGQRWGRZURQJLQUHPRYLQJDQGUHLQVWDOOLQJWKH VWDELODWRU WLSV RU WDLO WLSV  7KH UXGGHU KDV D GUDJUHGXFLQJ UXGGHUKRUQEDODQFHZHLJKW7KHGHIHQGDQWVFRPSODLQWKDW SODVWLFIDLULQJDQGDUXGGHUKRUQEDODQFHZHLJKWWKDWVLWVRQ 'RQKDPjVWHVWLPRQ\LVRYHUO\VSHFXODWLYHm7KHDLUSODQH WRSRIWKHWDLO7KHVWDELODWRULVKLQJHGEHKLQGWKHYHUWLFDOILQ IOHZDORQJWLPHEHIRUH>3ODQH3HUIHFWLRQ@WRXFKHGLWDQGLW DQG FRQWDLQV LQFKURXQG EDODQFH ZHLJKWV ZKLFK WKH GLGQjWODVWYHU\ORQJDIWHUDQGWKH\ZHUHWKHRQHVWKDWGLG VWDELODWRUWLSVFRYHU WKHZRUN6RLWjVP\RSLQLRQWKDWWKH\GLGKDYHDFKHPLFDO PHFKDQLFDOHIIHFWRQWKDWLQWHUIDFH0D\EHWKH\HYHQGURSSHG $3ODQH3HUIHFWLRQHPSOR\HHQDPHG.HQQHWK3RSSZKR DZUHQFKRQWKHKRUQIRUDOO,NQRZ,KDYHQRLGHDZKDW ZDVQRWDOLFHQVHGDLUFUDIWPHFKDQLFSHUIRUPHGWKHSULPDU\ KDSSHQHGWRWKHXQLWEXWWKHXQLWQRORQJHUIXQFWLRQHGDVD PDLQWHQDQFHZRUNRQsLJJHQVjVDLUFUDIW+HZDVDVVLVWHGE\ EDODQFH ZHLJKW LQ WKH WDLO IRRWHUl  'HIHQGDQWV DUJXH WKDW 'UHZ$QGHUVRQDQXQOLFHQVHGDSSUHQWLFHPHFKDQLF3RSS 'RQKDP VLPSO\ GRHV QRW SURYLGH DQ\ GLUHFW HYLGHQFH RI  0F/HDQHWDOY 1RV 1RV 0F/HDQHWDOY  2QWDULR/WGHWDO 2QWDULR/WGHWDO

IOXWWHU'RQKDPDFFHSWHG3RSSjVGHSRVLWLRQWHVWLPRQ\WKDWKH ZDVVXSSRVHGWREHVXSHUYLVHGE\OLFHQVHGPHFKDQLFVIURP KDGFRUUHFWO\EDODQFHGWKHKRUL]RQWDOVWDELODWRUEXWDWWULEXWHG % %$LUFUDIW3RSSDQG$QGHUVRQUHPRYHGWKHZLQJWLSV WKHSUREOHPZLWKWKHYHUWLFDOILQWRLPSURSHULQVWDOODWLRQRI DLOHURQVZLQJIODSVUXGGHUJHDUGRRUVDQGFRZO3RSSSXW WKHUXGGHUEDODQFHZHLJKWZKLFKFRXOGKDYHEHHQFDXVHGE\ RQQHZVWDELODWRUWLSVDGRUVDOILQGRUVDOZLQJIDLULQJDQG LQVWDOOLQJ VFUHZV WRR WLJKWO\ RU WRR ORRVHO\ LPSURSHUO\ WDLOFRQH+HDOVRLQVWDOOHGVWDLQOHVVVWHHOVFUHZVDQGZDVKHUV DOLJQLQJWKHVFUHZVDQGZDVKHUVRUDGGLQJSDLQW$VNHGLI RQWKHZLQJWLSVWDLOWLSVWDLOFRQHWRSRIWKHILQWRSRIWKH WKH LPSURSHUO\ EDODQFHG VWDELODWRU ZDV WKH ERWWRP OLQH UXGGHUGRUVDOILQDQGLQVSHFWLRQSDQHOV5HLQVWDOODWLRQRIWKH SUREOHP0U:LONHQVWDWHGWKDWLWZDVDSUREDELOLW\EXWWKDW UXGGHU DQG VWDELODWRU UHTXLUHG EDODQFLQJ WKHP  $ 3LSHU 'RQKDPjV WKHRU\ WKDW mLPSURSHU UHDWWDFKPHQWV RI WKH &KHURNHHjVVWDELODWRUVKRXOGEHEDODQFHGWREHWZHHQDQG VWDELODWRUFRXQWHUZHLJKWVLVDOVRDSUREDEOHFDXVHRIWKH  LQFKSRXQGV RI IRUFH  3ODQH 3HUIHFWLRQjV 0DLQWHQDQFH IOXWWHUl :RUN5HSRUWLQGLFDWHVWKDW3RSSEDODQFHGWKHVWDELODWRUWR m/%6lZLWKRXWDPLQXVVLJQ2WKHUEDODQFHILJXUHV 3ODLQWLIIVDUJXHWKDWWKHVWUHQJWKRIWKHIDFWXDOEDVLVRIDQ RQWKHVDPHIRUPLQFOXGHDPLQXVVLJQZKHUHWKHUHVKRXOGEH H[SHUWjVRSLQLRQLVDQLVVXHIRUWKHMXU\DQGWKDWWKHH[SHUWVj RQH7KHPDLQWHQDQFHUHSRUWDOVRLQFOXGHVDQRWHWKDWm DOOHJHG FRQWUDGLFWLRQ ZDV QRW D YDOLG UHDVRQ WR GLVPLVV 7( >WDLO HQG@ +HDY\l  +RZHYHU LQ KLV GHSRVLWLRQ 3RSS EHFDXVH ERWK H[SHUWV VWDWHG WKDW GHIHQGDQWVj QHJOLJHQFH UHIHUUHGWRRWKHUSDUWVWKDWKHEDODQFHGDVmWDLOKHDY\lZKHQ FUHDWHGWKHIOXWWHUWKDWFDXVHGWKHDFFLGHQW7KHGHIHQGDQWV WKH\ZHUHWREHEDODQFHGQHJDWLYHDQGKHOLNHZLVHUHIHUUHGWR DUJXHWKDW:LONHQjVRSLQLRQDERXWWKHLPSURSHUO\EDODQFHG KDYLQJEDODQFHGWKHVWDELODWRUmWDLOKHDY\l$OOHQ%DOODQG VWDELODWRUODFNVUHFRUGVXSSRUWDQGWKHUHIRUHFDQQRWHVWDEOLVK 'RQ:KLWHRI% %$LUFUDIWFHUWLILHGWKDWWKH\LQVSHFWHGWKH DJHQXLQHLVVXHRIFDXVDWLRQIRUWULDOWKRXJKWKH\VWLOOEHOLHYH VWDELODWRUDQGWKDWLWZDVSURSHUO\EDODQFHG WKDWLWVKRXOGEHFRQVWUXHGDVFRQWUDGLFWLQJnDQGWKXVIDWDOO\ XQGHUPLQLQJn'RQKDPjVWHVWLPRQ\ 3ODLQWLIIVUHWDLQHG5LFN:LONHQDVDQH[SHUWWRLQYHVWLJDWH WKHDFFLGHQW,QKLVGHSRVLWLRQ:LONHQFRQFOXGHGEDVHGRQ ,9 WKHZRUNVKHHWQRWDWLRQWKHIDFWWKDW3ODQH3HUIHFWLRQjVVFDOHV ZHUH QHLWKHU FHUWLILHG QRU FDOLEUDWHG FRQWUDU\ WR &DQDGLDQ 7R GHIHDW VXPPDU\ MXGJPHQW SODLQWLIIVj H[SHUWV PXVW DYLDWLRQDXWKRULW\UHTXLUHPHQWVDQGKLVREVHUYDWLRQRI3ODQH HVWDEOLVK HLWKHU VHSDUDWHO\ RU WDNHQ WRJHWKHU WKDW WKHUH LV 3HUIHFWLRQjV PHFKDQLFV ZKR ZHUH QHLWKHU OLFHQVHG QRU VXEVWDQWLDOHYLGHQFHWKDWGHIHQGDQWVjQHJOLJHQFHFDXVHGWKH VXSHUYLVHG RQ D VWHSE\VWHS EDVLV WKDW WKH VWDELODWRU KDG FUDVK7XUQLQJILUVWWR:LONHQjVGHSRVLWLRQWKHGLVWULFWFRXUW EHHQLPSURSHUO\EDODQFHGWDLOKHDY\DQGVHSDUDWHGLQIOLJKW KHOGWKDWKHGLGQRWFLWHDUHJXODWLRQSURKLELWLQJDQXQOLFHQVHG :LONHQ DOVR WHVWLILHG WKDW 3RSS KDG FRUUHFWO\ UHFRUGHG WKH PHFKDQLFIURPVHUYLFLQJWKHSODQHWKDW3RSSKDGWHVWLILHG SRVLWLYHRUQHJDWLYHYDOXHVIRURWKHUHQWULHVDQGREVHUYHGWKDW WKDWKHEDODQFHGWKHVWDELODWRUmWDLOKHDY\lWKDW:LONHQGLG 3RSS DSSDUHQWO\ KDG QRW QRWLFHG WKH PLVVLQJ PLQXV VLJQ QRWWHVWWKHFDOLEUDWLRQRIWKHVFDOHV3RSSXVHGDQGWKDWQR GXULQJKLVGHSRVLWLRQZKLFKZRXOGKDYHmSRSSHGULJKWRXW HYLGHQFHLQGLFDWHGWKDWWKHQRQDSSURYHGUHSODFHPHQWSDUWVRU DWlDFRPSHWHQWPHFKDQLF:LONHQDOVRFULWLFL]HGWKHODFNRI ODFNRIPHFKDQLFOLFHQVLQJFDXVHGWKHFUDVK+RZHYHUWDNHQ GHWDLOLQ3RSSjVGHVFULSWLRQRIWKHVWHSVWDNHQLQEDODQFLQJWKH LQDOLJKWPRVWIDYRUDEOHWRWKHSODLQWLIIVLWPD\EHQRWHGWKDW VWDELODWRU:LONHQVWDWHGWKDWWKHDLUFUDIWFRXOGKDYHIORZQ 3RSSZDVQHYHUDVNHGGLUHFWO\DERXWWKHPDLQWHQDQFHUHFRUG HYHQZLWKLWVVWDELODWRUEDODQFHGDWLQFKSRXQGVEXW WKDW FRQWUDGLFWHG KLP WKDW WKHUH LV VRPH HYLGHQFH WKH WKDWLWZRXOGKDYHEHHQLPSURSHUO\EDODQFHG6WLOOEHFDXVH LPSURSHUVLJQZDVQRWMXVWDQRYHUVLJKWDQGWKDWDQHUURU RIWKHVORSS\SDLQWMREWKHODFNRIFDOLEUDWLRQWKHIDLOXUHWR  0F/HDQHWDOY 1RV 1RV 0F/HDQHWDOY  2QWDULR/WGHWDO 2QWDULR/WGHWDO

GHVFULEHSURSHUSURFHGXUHVDQGWKHXVHRIUHSODFHPHQWSDUWV GHWDFKHG DQG UHDWWDFKHG DV SDUW RI WKH VWDELODWRUEDODQFLQJ QRWIURPWKHPDQXIDFWXUHU:LONHQDVFULEHGWKHFDXVHRIWKH SURFHGXUH DFFLGHQWWRQHJOLJHQFHE\WKHGHIHQGDQWV :LONHQFDOOHGLQDIOXWWHUH[SHUW5REHUW'RQKDPEHFDXVH $FFRUGLQJWR:LONHQWKHSODQHjVIDXOW\UHSDLUVFDXVHGLWWR IOXWWHUZDVQRW:LONHQjVDUHDRIH[SHUWLVHDQG'RQKDPZRXOG GHYHORSDHURG\QDPLFIOXWWHUZKLOHLQIOLJKW:LONHQIRXQG mEH EHWWHU SUHSDUHG WR WHVWLI\ DV IDU DV WKH H[WHQW DQG WKH HYLGHQFHRIIOXWWHULQSDUWVIURPWKHZUHFNDJH7KLVLQFOXGHG GHWDLOHG VLJQDWXUHl RI IOXWWHU  ,Q KLV GHSRVLWLRQ 'RQKDP VWUDLQLQGXFHGSHUPDQHQWmVHWVlEHQWRUWZLVWHGSODFHVLQWKH FRQFXUUHGWKDWIOXWWHUKDGGHVWUR\HGWKHDLUFUDIWLQDSURFHVV PDWHULDORIWKHVWDELODWRUGDPDJHWRWKHKLQJHEHDULQJVDQG WDNLQJRQO\VHFRQGV+HLGHQWLILHGPDQ\RWKHUVLJQV RWKHUHYLGHQFHRIIOXWWHULQWKHUXGGHUDQGYHUWLFDOILQZKLFK VXSSRUWLQJWKDWWKHVLV,QSDUWLFXODUKHQRWHGWKHORVVRIWKH ZHUH QRW DWWULEXWDEOH WR WKH FUDVK LWVHOI  :LONHQ GHVFULEHV VWDELODWRUWLSVGXHWRRVFLOODWLRQLQWKHKRUL]RQWDOSRUWLRQRI IOXWWHUDVDmGHVWUXFWLYHKDUPRQLFHYHQWWKDWYLUWXDOO\GHVWUR\V WKHWDLOVLJQVRIEHQGLQJLQWKHVWDELODWRUVWDUFUDFNVRQWKH WKH LQWHJULW\ RI WKH FRQWUROl  ,W GHYHORSV UDSLGO\ DQG FDQ UXGGHUjV WUDLOLQJ HGJH WKH IDFW WKDW ZKDW KH WRRN WR EH WKH GHVWUR\DSDUWVRRQDIWHURQVHW,QsLJJHQVjVSODQH:LONHQ EDODQFHZHLJKWFDPHRIILQIOLJKWGHVSLWHLWVEHLQJGHVLJQHGWR EHOLHYHVWKDWIOXWWHUEHJDQMXVWSULRUWRWKHDLUFUDIWjVEUHDNLQJ ZLWKVWDQGYHU\KLJKSUHVVXUHWKHIDLOXUHRIWKHFHQWHUILWWLQJV XS DIWHU LW KDG PDGH D ULJKW WXUQ LQ UHVSRQVH WR D WUDIILF DQGGHIRUPDWLRQRIWKHWDLOILQ DGYLVRU\7KHVWDELODWRUWLSVHQKDQFHGWKHIOXWWHUFDXVLQJWKH VWDELODWRUWRIDLOILUVWIROORZHGE\WKHUXGGHUDQGWKHQWKH 'RQKDPEHOLHYHGWKHRUGHULQZKLFKWKHSODQHj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mWDLOWLSIDLULQJl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mORVV RI DGHTXDWH VWUXFWXUDO DWWDFKPHQW RI WKH FDXVHRIWKHIOXWWHUDQG3ODQH3HUIHFWLRQGLGQRWVHUYLFHWKH >)LEHUJODV@ VXSSRUW VWUXFWXUH IRU WKH UXGGHU KRUQ EDODQFH FDEOHVLWLVVSHFXODWLYHWRDWWULEXWHWKHFUDVKWRDQ\QHJOLJHQFH ZHLJKW WR WKH WRS RI WKH UXGGHUl FDXVHG E\ mPHFKDQLFDO RQWKHSDUWRI3ODQH3HUIHFWLRQHPSOR\HHV:LONHQDWWHVWHG FKHPLFDORUDFRPELQDWLRQRIERWKHIIHFWVl,QRWKHUZRUGV WKDWKHGLGQRWNQRZZKHWKHUWKHFDEOHWHQVLRQZDVSURSHU DORRVHEDODQFHZHLJKWLQGXFHGIOXWWHUWKDWGHVWUR\HGWKHUHVW GLG QRW NQRZ ZKHWKHU WKH FDEOHV KDG EHHQ DGMXVWHG DQG RIWKHDLUFUDIW2VFLOODWLRQRIWKHILQDQGUXGGHUZRXOGKDYH DJUHHGWKDWWKHPDLQWHQDQFHSDSHUZRUNGLGQRWLQGLFDWHWKDW FDXVHGWKHVWDELODWRUWRIDLO7KH176%jVFUDVKLQYHVWLJDWLRQ 3ODQH3HUIHFWLRQHPSOR\HHVKDGWRXFKHGWKHFDEOHVKRZHYHU UHSRUWGLGQRWSUHVHQWDQ\FRQFOXVLRQVDERXWWKHSUHVHQFHRI 3RSSjV WHVWLPRQ\ DSSHDUV WR LQGLFDWH WKDW WKH FDEOHV ZHUH IOXWWHUHYHQWKRXJKLWGLVFXVVHGIDLOXUHVWKDWZHUHVLJQVRI