Stanford v. Parker
Opinion
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 6WDQIRUGY3DUNHU 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
VXFK DV 6WDQIRUG KDYH D FKRLFH RI OHWKDO LQMHFWLRQ RU )LOH 1DPH DS
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m>E@\GHFODULQJKLVPHWKRGRIH[HFXWLRQSLFNLQJ 3+,/ 3$5.(5:DUGHQ OHWKDOJDVRYHUWKHVWDWHjVGHIDXOWIRUPRIH[HFXWLRQOHWKDO .HQWXFN\6WDWH3HQLWHQWLDU\ LQMHFWLRQo >WKHLQPDWH@KDVZDLYHGDQ\REMHFWLRQKHPLJKW 5HVSRQGHQW$SSHOOHH KDYHWRLWl,G 1 $SSO\LQJ WKDW VDPH DQDO\VLV KHUH LI 6WDQIRUG FKRRVHV HOHFWURFXWLRQ RYHU OHWKDO LQMHFWLRQ WKH FRQVWLWXWLRQDOLW\ RI ZKLFKKHGRHVQRWFKDOOHQJHKHZLOOZDLYHDQ\REMHFWLRQWR $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW HOHFWURFXWLRQ 7KXV ZH QHHG QRW FRQVLGHU ZKHWKHU IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW/RXLVYLOOH HOHFWURFXWLRQLVFUXHODQGXQXVXDOSXQLVKPHQWEHFDXVHIRU 1R n&KDUOHV56LPSVRQ,,,&KLHI'LVWULFW WKDWLVVXHWREHUHOHYDQW6WDQIRUGZRXOGILUVWKDYHWRZDLYH sXGJH LW $)),50(' $UJXHG )HEUXDU\ 'HFLGHGDQG)LOHG 6HSWHPEHU %HIRUH %2**66,/(5DQG&2/(&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' s 9LQFHQW $SULOH ,, '(3$570(17 2) 38%/,&$'92&$&<)UDQNIRUW.HQWXFN\IRU$SSHOODQW 'DYLG$6PLWK2)),&(2)7+($77251(<*(1(5$/
6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
&5,0,1$/$33(//$7(',9,6,21)UDQNIRUW.HQWXFN\ LQKHUHQWDXWKRULW\RIVWDWHFRXUWVWRH[FOXGHGHIHQVHHYLGHQFH IRU $SSHOOHH 21 %5,() s 9LQFHQW $SULOH ,, ZKHQ WKH SUHMXGLFLDO DVSHFWV RI WKDW HYLGHQFH H[FHHG LWV '(3$570(17 2) 38%/,& $'92&$&< )UDQNIRUW SUREDWLYHYDOXH6HH8QLWHG6WDWHVY6FKHIIHU86 .HQWXFN\6WHIDQLH00F$UGOH%RZOLQJ*UHHQ.HQWXFN\ mµ/RFNHWWDQGLWVSURJHQ\VWDQGRQO\IRUWKH IRU$SSHOODQW'DYLG$6PLWK,DQ*6RQHJR2)),&(2) SURSRVLWLRQWKDWD6WDWHPD\QRWFXWRIILQDQDEVROXWHPDQQHU 7+($77251(<*(1(5$/&5,0,1$/$33(//$7( WKHSUHVHQWDWLRQRIPLWLJDWLQJHYLGHQFHHLWKHUE\VWDWXWHRU ',9,6,21)UDQNIRUW.HQWXFN\IRU$SSHOOHH MXGLFLDOLQVWUXFWLRQRUE\OLPLWLQJWKHLQTXLULHVWRZKLFKLWLV UHOHYDQWVRVHYHUHO\WKDWWKHHYLGHQFHFRXOGQHYHUEHSDUWRI BBBBBBBBBBBBBBBBB WKHVHQWHQFLQJGHFLVLRQDWDOOjlsRKQVRQY7H[DV 86 TXRWLQJ0F.R\Y1RUWK&DUROLQD 86 23,1,21 .HQQHG\sFRQFXUULQJ BBBBBBBBBBBBBBBBB sRQHVjVWHVWLPRQ\ZDVSURSHUO\H[FOXGHGE\DVWDWHFRXUW 6,/(5&LUFXLWsXGJH3HWLWLRQHU.HYLQ1LJHO6WDQIRUGZDV DSSO\LQJ LWV RZQ ODZV RI HYLGHQFH 2Q GLUHFW DSSHDO WKH FRQYLFWHGLQD.HQWXFN\VWDWHFRXUWRIFDSLWDOPXUGHUILUVW .HQWXFN\ 6XSUHPH &RXUW KHOG WKDW sRQHVjV SURIIHUHG GHJUHH UREEHU\ ILUVW GHJUHH VRGRP\ DQG UHFHLSW RI VWROHQ WHVWLPRQ\ZDVLQDGPLVVLEOHGXHWRKLVPLQLPDODQGUHPRWH SURSHUW\ +H ZDV VHQWHQFHG WR GHDWK +LV FRQYLFWLRQ DQG SHUVRQDO NQRZOHGJH RI 6WDQIRUG KLV ODFN RI H[SHUW VHQWHQFHZHUHXSKHOGRQGLUHFWDSSHDODQGWKURXJKVWDWHSRVW TXDOLILFDWLRQDQGWKHLPSURSHUVXEVWDQFHRIKLVWHVWLPRQ\ FRQYLFWLRQSURFHHGLQJV6WDQIRUGWKHQILOHGDSHWLWLRQIRUD 6HH 6WDQIRUG 6:G DW sRQHV ZRXOG KDYH ZULW RI KDEHDV FRUSXV LQ WKH IHGHUDO GLVWULFW FRXUW ZKLFK WHVWLILHGDERXWWKHmGHDWKSHQDOW\lDQGQRWDERXW6WDQIRUGjV GHQLHGKLVSHWLWLRQ:HDIILUPWKHGLVWULFWFRXUWjVGHQLDORI FKDUDFWHU SULRU UHFRUG RU WKH FLUFXPVWDQFHV RI 6WDQIRUGjV 6WDQIRUGjVKDEHDVSHWLWLRQ FULPHV6HH.RUGHQEURFNY6FURJJ\ )G WK&LU HQEDQF ILQGLQJWKDWWKHH[FOXVLRQRIVLPLODU ,%DFNJURXQG PLWLJDWLRQWHVWLPRQ\ZDVERWKLUUHOHYDQWDQGKDUPOHVVEH\RQG DUHDVRQDEOHGRXEW ,Q %DHUEHO3RRUHZRUNHGDVDQDWWHQGDQWDWD&KHFNHU JDVROLQHVWDWLRQLQVRXWKZHVWHUQsHIIHUVRQ&RXQW\.HQWXFN\ M (OHFWURFXWLRQ :RUNLQJ DORQH RQH HYHQLQJ VKH UHDG WKH JDV SXPSV LQ SUHSDUDWLRQ IRU FORVLQJ WKH VWDWLRQ IRU WKH QLJKW 6WDQIRUG $QGILQDOO\6WDQIRUGDUJXHVWKDWHOHFWURFXWLRQDVDPHWKRG WKHQVHYHQWHHQ\HDUVROGOLYHGLQWKHYLFLQLW\RIWKH&KHFNHU RIFDUU\LQJRXWDGHDWKVHQWHQFHLVXQFRQVWLWXWLRQDOSXUVXDQW VWDWLRQDQGNQHZ3RRUH2QsDQXDU\ KHDQG'DYLG WR WKH (LJKWK $PHQGPHQW EHFDXVH LW YLRODWHV HYROYLQJ %XFKDQDQ GHFLGHG WR URE WKH VWDWLRQ 7UR\ sRKQVRQ WKHLU VWDQGDUGVRIGHFHQF\6HH7URSY'XOOHV86 DFFRPSOLFHDJUHHGWRGULYHWKHJHWDZD\FDUEXWUHIXVHGWR 6SHFLILFDOO\KHDUJXHVWKDWHOHFWURFXWLRQYLRODWHV SDUWLFLSDWHLQWKHUREEHU\ WKH(LJKWK$PHQGPHQWEHFDXVHLWLQYROYHVmWKHXQQHFHVVDU\ DQGZDQWRQLQIOLFWLRQRISDLQl*UHJJY*HRUJLD86 $V3RRUHILQLVKHGUHDGLQJWKHSXPSV6WDQIRUGDSSURDFKHG :HDIILUPWKHGLVWULFWFRXUWjVFRQFOXVLRQ KHU ZLWK D JXQ DQG WRJHWKHU ZLWK %XFKDQDQ IRUFHG 3RRUH WKDW6WDQIRUGjVHOHFWURFXWLRQFODLPIDLOV LQVLGHWKHVWDWLRQjVFRQYHQLHQFHVWRUH2QFHLQVLGH%XFKDQDQ DWWHPSWHGWRRSHQWKHVWRUHjVIORRUVDIHVZKLOH6WDQIRUGWRRN 6WDQIRUGjVDUJXPHQWLJQRUHVWKHIDFWWKDWKHQHHGQRWEH 3RRUHWRDUHVWURRPDQGUDSHGKHU%XFKDQDQVRRQMRLQHG HOHFWURFXWHG.\5HY6WDW$QQ E SURYLGHVWKDW WKRVH SHUVRQV VHQWHQFHG WR GHDWK SULRU WR 0DUFK 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
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 6WDQIRUGY3DUNHU 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
VXFK DV 6WDQIRUG KDYH D FKRLFH RI OHWKDO LQMHFWLRQ RU )LOH 1DPH DS
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m>E@\GHFODULQJKLVPHWKRGRIH[HFXWLRQSLFNLQJ 3+,/ 3$5.(5:DUGHQ OHWKDOJDVRYHUWKHVWDWHjVGHIDXOWIRUPRIH[HFXWLRQOHWKDO .HQWXFN\6WDWH3HQLWHQWLDU\ LQMHFWLRQo >WKHLQPDWH@KDVZDLYHGDQ\REMHFWLRQKHPLJKW 5HVSRQGHQW$SSHOOHH KDYHWRLWl,G 1 $SSO\LQJ WKDW VDPH DQDO\VLV KHUH LI 6WDQIRUG FKRRVHV HOHFWURFXWLRQ RYHU OHWKDO LQMHFWLRQ WKH FRQVWLWXWLRQDOLW\ RI ZKLFKKHGRHVQRWFKDOOHQJHKHZLOOZDLYHDQ\REMHFWLRQWR $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW HOHFWURFXWLRQ 7KXV ZH QHHG QRW FRQVLGHU ZKHWKHU IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW/RXLVYLOOH HOHFWURFXWLRQLVFUXHODQGXQXVXDOSXQLVKPHQWEHFDXVHIRU 1R n&KDUOHV56LPSVRQ,,,&KLHI'LVWULFW WKDWLVVXHWREHUHOHYDQW6WDQIRUGZRXOGILUVWKDYHWRZDLYH sXGJH LW $)),50(' $UJXHG )HEUXDU\ 'HFLGHGDQG)LOHG 6HSWHPEHU %HIRUH %2**66,/(5DQG&2/(&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' s 9LQFHQW $SULOH ,, '(3$570(17 2) 38%/,&$'92&$&<)UDQNIRUW.HQWXFN\IRU$SSHOODQW 'DYLG$6PLWK2)),&(2)7+($77251(<*(1(5$/
6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
&5,0,1$/$33(//$7(',9,6,21)UDQNIRUW.HQWXFN\ LQKHUHQWDXWKRULW\RIVWDWHFRXUWVWRH[FOXGHGHIHQVHHYLGHQFH IRU $SSHOOHH 21 %5,() s 9LQFHQW $SULOH ,, ZKHQ WKH SUHMXGLFLDO DVSHFWV RI WKDW HYLGHQFH H[FHHG LWV '(3$570(17 2) 38%/,& $'92&$&< )UDQNIRUW SUREDWLYHYDOXH6HH8QLWHG6WDWHVY6FKHIIHU86 .HQWXFN\6WHIDQLH00F$UGOH%RZOLQJ*UHHQ.HQWXFN\ mµ/RFNHWWDQGLWVSURJHQ\VWDQGRQO\IRUWKH IRU$SSHOODQW'DYLG$6PLWK,DQ*6RQHJR2)),&(2) SURSRVLWLRQWKDWD6WDWHPD\QRWFXWRIILQDQDEVROXWHPDQQHU 7+($77251(<*(1(5$/&5,0,1$/$33(//$7( WKHSUHVHQWDWLRQRIPLWLJDWLQJHYLGHQFHHLWKHUE\VWDWXWHRU ',9,6,21)UDQNIRUW.HQWXFN\IRU$SSHOOHH MXGLFLDOLQVWUXFWLRQRUE\OLPLWLQJWKHLQTXLULHVWRZKLFKLWLV UHOHYDQWVRVHYHUHO\WKDWWKHHYLGHQFHFRXOGQHYHUEHSDUWRI BBBBBBBBBBBBBBBBB WKHVHQWHQFLQJGHFLVLRQDWDOOjlsRKQVRQY7H[DV 86 TXRWLQJ0F.R\Y1RUWK&DUROLQD 86 23,1,21 .HQQHG\sFRQFXUULQJ BBBBBBBBBBBBBBBBB sRQHVjVWHVWLPRQ\ZDVSURSHUO\H[FOXGHGE\DVWDWHFRXUW 6,/(5&LUFXLWsXGJH3HWLWLRQHU.HYLQ1LJHO6WDQIRUGZDV DSSO\LQJ LWV RZQ ODZV RI HYLGHQFH 2Q GLUHFW DSSHDO WKH FRQYLFWHGLQD.HQWXFN\VWDWHFRXUWRIFDSLWDOPXUGHUILUVW .HQWXFN\ 6XSUHPH &RXUW KHOG WKDW sRQHVjV SURIIHUHG GHJUHH UREEHU\ ILUVW GHJUHH VRGRP\ DQG UHFHLSW RI VWROHQ WHVWLPRQ\ZDVLQDGPLVVLEOHGXHWRKLVPLQLPDODQGUHPRWH SURSHUW\ +H ZDV VHQWHQFHG WR GHDWK +LV FRQYLFWLRQ DQG SHUVRQDO NQRZOHGJH RI 6WDQIRUG KLV ODFN RI H[SHUW VHQWHQFHZHUHXSKHOGRQGLUHFWDSSHDODQGWKURXJKVWDWHSRVW TXDOLILFDWLRQDQGWKHLPSURSHUVXEVWDQFHRIKLVWHVWLPRQ\ FRQYLFWLRQSURFHHGLQJV6WDQIRUGWKHQILOHGDSHWLWLRQIRUD 6HH 6WDQIRUG 6:G DW sRQHV ZRXOG KDYH ZULW RI KDEHDV FRUSXV LQ WKH IHGHUDO GLVWULFW FRXUW ZKLFK WHVWLILHGDERXWWKHmGHDWKSHQDOW\lDQGQRWDERXW6WDQIRUGjV GHQLHGKLVSHWLWLRQ:HDIILUPWKHGLVWULFWFRXUWjVGHQLDORI FKDUDFWHU SULRU UHFRUG RU WKH FLUFXPVWDQFHV RI 6WDQIRUGjV 6WDQIRUGjVKDEHDVSHWLWLRQ FULPHV6HH.RUGHQEURFNY6FURJJ\ )G WK&LU HQEDQF ILQGLQJWKDWWKHH[FOXVLRQRIVLPLODU ,%DFNJURXQG PLWLJDWLRQWHVWLPRQ\ZDVERWKLUUHOHYDQWDQGKDUPOHVVEH\RQG DUHDVRQDEOHGRXEW ,Q %DHUEHO3RRUHZRUNHGDVDQDWWHQGDQWDWD&KHFNHU JDVROLQHVWDWLRQLQVRXWKZHVWHUQsHIIHUVRQ&RXQW\.HQWXFN\ M (OHFWURFXWLRQ :RUNLQJ DORQH RQH HYHQLQJ VKH UHDG WKH JDV SXPSV LQ SUHSDUDWLRQ IRU FORVLQJ WKH VWDWLRQ IRU WKH QLJKW 6WDQIRUG $QGILQDOO\6WDQIRUGDUJXHVWKDWHOHFWURFXWLRQDVDPHWKRG WKHQVHYHQWHHQ\HDUVROGOLYHGLQWKHYLFLQLW\RIWKH&KHFNHU RIFDUU\LQJRXWDGHDWKVHQWHQFHLVXQFRQVWLWXWLRQDOSXUVXDQW VWDWLRQDQGNQHZ3RRUH2QsDQXDU\ KHDQG'DYLG WR WKH (LJKWK $PHQGPHQW EHFDXVH LW YLRODWHV HYROYLQJ %XFKDQDQ GHFLGHG WR URE WKH VWDWLRQ 7UR\ sRKQVRQ WKHLU VWDQGDUGVRIGHFHQF\6HH7URSY'XOOHV86 DFFRPSOLFHDJUHHGWRGULYHWKHJHWDZD\FDUEXWUHIXVHGWR 6SHFLILFDOO\KHDUJXHVWKDWHOHFWURFXWLRQYLRODWHV SDUWLFLSDWHLQWKHUREEHU\ WKH(LJKWK$PHQGPHQWEHFDXVHLWLQYROYHVmWKHXQQHFHVVDU\ DQGZDQWRQLQIOLFWLRQRISDLQl*UHJJY*HRUJLD86 $V3RRUHILQLVKHGUHDGLQJWKHSXPSV6WDQIRUGDSSURDFKHG :HDIILUPWKHGLVWULFWFRXUWjVFRQFOXVLRQ KHU ZLWK D JXQ DQG WRJHWKHU ZLWK %XFKDQDQ IRUFHG 3RRUH WKDW6WDQIRUGjVHOHFWURFXWLRQFODLPIDLOV LQVLGHWKHVWDWLRQjVFRQYHQLHQFHVWRUH2QFHLQVLGH%XFKDQDQ DWWHPSWHGWRRSHQWKHVWRUHjVIORRUVDIHVZKLOH6WDQIRUGWRRN 6WDQIRUGjVDUJXPHQWLJQRUHVWKHIDFWWKDWKHQHHGQRWEH 3RRUHWRDUHVWURRPDQGUDSHGKHU%XFKDQDQVRRQMRLQHG HOHFWURFXWHG.\5HY6WDW$QQ E SURYLGHVWKDW WKRVH SHUVRQV VHQWHQFHG WR GHDWK SULRU WR 0DUFK 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
%HFDXVH 6WDQIRUG IDLOHG WR IXOO\ DQG IDLUO\ SUHVHQW KLV 6WDQIRUGLQWKHUHVWURRPZKHUHWKH\FRQWLQXHGWRUDSHDQG MXGLFLDOUHFXVDODUJXPHQWVWRWKHVWDWHFRXUWVZHDIILUPWKH VRGRPL]H3RRUH GLVWULFW FRXUWjV KROGLQJ WKDW 6WDQIRUGjV UHFXVDO FODLPV DUH SURFHGXUDOO\ EDUUHG )XUWKHUPRUH 6WDQIRUG KDV IDLOHG WR :KHQ 6WDQIRUG OHIW WKH VWDWLRQ KH WRRN 3RRUH ZLWK KLP GHPRQVWUDWHDQ\FDXVHDQGSUHMXGLFHRUPDQLIHVWLQMXVWLFHWR 'ULYLQJ 3RRUHjV FDU KH GURYH KHU D VKRUW GLVWDQFH WR DQ RYHUFRPHSURFHGXUDOGHIDXOW LVRODWHGDUHD%XFKDQDQDQGsRKQVRQIROORZHGLQsRKQVRQjV FDU:KHQWKHFDUVVWRSSHG%XFKDQDQH[LWHGsRKQVRQjVFDU K 3HQDOW\3KDVH,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO DQG DSSURDFKHG 3RRUHjV +H VDZ 6WDQIRUG VWDQGLQJ MXVW RXWVLGHWKHRSHQGULYHUjVGRRUDQG3RRUHVPRNLQJDFLJDUHWWH 6WDQIRUGDOVRFRQWHQGVWKDWKLVFRXQVHOj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jV SHQDOW\ SKDVH LQHIIHFWLYH FLJDUHWWHV WZR JDOORQV RI JDVROLQH DQG D VPDOO DPRXQW RI DVVLVWDQFH RI FRXQVHO FODLP LV DOVR SURFHGXUDOO\ GHIDXOWHG FDVK EHFDXVH6WDQIRUGIDLOHGWRUDLVHWKHFODLPEHIRUHWKH.HQWXFN\ 6XSUHPH&RXUW ,Q $XJXVW RYHU WKHLU REMHFWLRQV 6WDQIRUG DQG %XFKDQDQZHUHMRLQWO\WULHGEHIRUHDMXU\LQWKHFRXUWURRPRI L 5REHUWsRQHV7HVWLPRQ\ sHIIHUVRQ&LUFXLWsXGJH&KDUOHV0/HLEVRQ7KHMXU\IRXQG 6WDQIRUGJXLOW\RIWKHFDSLWDOPXUGHURI3RRUHILUVWGHJUHH 6WDQIRUG QH[W FRQWHQGV WKDW WKH WULDO FRXUW LPSURSHUO\ UREEHU\ILUVWGHJUHHVRGRP\DQGUHFHLSWRIVWROHQSURSHUW\ H[FOXGHGWKHWHVWLPRQ\RI5REHUWsRQHVDIRUPHUGHDWKURZ YDOXHGLQH[FHVVRIsXGJH/HLEVRQVHQWHQFHG6WDQIRUG LQPDWHGXULQJWKHSHQDOW\SKDVHRIKLVWULDO7KHH[FOXVLRQRI WRGHDWKIRUKLVFDSLWDOPXUGHUFRQYLFWLRQDQGIRUW\ILYH\HDUV sRQHVjV WHVWLPRQ\ KH DUJXHV LPSURSHUO\ OLPLWHG KLV LPSULVRQPHQW IRU UREEHU\ VRGRP\ DQG UHFHLSW RI VWROHQ FRQVWLWXWLRQDOULJKWWRSUHVHQWPLWLJDWLQJHYLGHQFHsRQHVZDV SURSHUW\&RGHIHQGDQW%XFKDQDQFRXOGQRWUHFHLYHWKHGHDWK RQH RI QLQH PLWLJDWLRQ ZLWQHVVHV FDOOHG E\ 6WDQIRUGjV SHQDOW\EHFDXVHKHZDVSURVHFXWHGDVGHDWKLQHOLJLEOH+H DWWRUQH\VGXULQJWKHSHQDOW\SKDVHEXWKHZDVWKHRQO\RQH ZDV VHQWHQFHG WR OLIH LPSULVRQPHQW IRU PXUGHU DQG VL[W\ QRWSHUPLWWHGWRWHVWLI\EHIRUHWKHMXU\0LWLJDWLRQWHVWLPRQ\ \HDUVLPSULVRQPHQWIRUUDSHVRGRP\DQGUREEHU\sRKQVRQ IURPILYHZLWQHVVHVZDVDFWXDOO\SUHVHQWHG ZDVFRQYLFWHGLQMXYHQLOHFRXUWIRUKLVUROHDVWKHJHWDZD\ GULYHU 7KH GLVWULFW FRXUW GLG QRW HUU LQ KROGLQJ WKDW sRQHVjV WHVWLPRQ\ZDVSURSHUO\H[FOXGHG(GGLQJVY2NODKRPD 6WDQIRUGjVFRQYLFWLRQZDVXSKHOGRQGLUHFWDSSHDODQGLQ 86 DQG/RFNHWWY2KLR86 SRVWFRQYLFWLRQSURFHHGLQJV,Q WKH.HQWXFN\6XSUHPH UHTXLUH WKDW MXULHV EH DOORZHG WR FRQVLGHU DOO UHOHYDQW &RXUW DIILUPHG KLV FDSLWDO FRQYLFWLRQ 6HH 6WDQIRUG Y PLWLJDWLQJ HYLGHQFH ZLWK WKH OLPLWDWLRQ WKDW m>Q@RWKLQJ &RPPRQZHDOWK6:G .\ $QGLQ OLPLWV WKH WUDGLWLRQDO DXWKRULW\ RI D FRXUW WR H[FOXGH DV KLVFRQYLFWLRQEHFDPHILQDOZKHQWKH866XSUHPH &RXUW LUUHOHYDQWHYLGHQFHQRWEHDULQJRQWKHGHIHQGDQW VFKDUDFWHU DIILUPHG KLV FRQYLFWLRQ DQG VHQWHQFH 6HH 6WDQIRUG Y SULRUUHFRUGRUWKHFLUFXPVWDQFHVRIKLVRIIHQVHl/RFNHWW .HQWXFN\ 86 $IWHUKLVGLUHFWDSSHDOIDLOHG 86DWQ7KH6XSUHPH&RXUWKDVUHFRJQL]HGWKH 6WDQIRUGILOHGDSRVWFRQYLFWLRQPRWLRQWRYDFDWHSXUVXDQWWR 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
.\5&ULP3)LUVWWKHsHIIHUVRQ&LUFXLW&RXUWDQG DYDLODEOHXQGHUWKH)HGHUDO5XOHVRI&LYLO3URFHGXUHLIDQG WKHQ WKH .HQWXFN\ 6XSUHPH &RXUW UHMHFWHG KLV SRVW WRWKHH[WHQWWKDWWKHMXGJHLQWKHH[HUFLVHRIKLVGLVFUHWLRQ FRQYLFWLRQ PRWLRQ DQG DIILUPHG KLV FDSLWDO VHQWHQFH 6HH DQG IRU JRRG FDXVH VKRZQ JUDQWV OHDYH WR GR VR EXW QRW 6WDQIRUGY&RPPRQZHDOWK6:G .\ ,Q RWKHUZLVHl7KHEXUGHQRIGHPRQVWUDWLQJWKHPDWHULDOLW\RI WKH866XSUHPH&RXUWGHQLHGFHUWLRUDULRQ6WDQIRUGjV LQIRUPDWLRQUHTXHVWHGLVRQWKHPRYLQJSDUW\6HH0XUSK\Y SRVWFRQYLFWLRQFODLPV6HH6WDQIRUGY.HQWXFN\86 sRKQVRQ)G WK&LU 7KHGLVWULFWFRXUWDSSOLHGWKHFRUUHFWOHJDOVWDQGDUGLQOLJKW 6WDQIRUGjVIHGHUDOKDEHDVOLWLJDWLRQEHJDQZKHQKHILOHGKLV RI WKH HYLGHQFH DQG WKH VWDWH FRXUW SURFHHGLQJV 7KH SHWLWLRQLQWKH:HVWHUQ'LVWULFWRI.HQWXFN\LQsDQXDU\ GLVFRYHU\VRXJKWE\6WDQIRUGZRXOGQRWUHVROYHDQ\IDFWXDO 7KDW SHWLWLRQ UDLVHG IRUW\WZR VHSDUDWH FODLPV RI HUURU ,Q GLVSXWHVWKDWFRXOGHQWLWOHKLPWRUHOLHIHYHQLIWKHIDFWVZHUH $XJXVW WKHGLVWULFWFRXUWGHQLHGKLVKDEHDVSHWLWLRQDQG IRXQG LQ KLV IDYRU 7R WKH FRQWUDU\ 6WDQIRUGjV UHTXHVWHG JUDQWHGDEODQNHWFHUWLILFDWHRISUREDEOHFDXVH m&3&l ,Q GLVFRYHU\ZKHQUHYLHZHGLQOLJKWRIWKHUHFHQWO\H[DPLQHG sDQXDU\6WDQIRUGWLPHO\DSSHDOHGWKHGLVWULFWFRXUWjV UHFRUGIDOOVPRUHLQWKHFDWHJRU\RIDILVKLQJH[SHGLWLRQ:H GHQLDODQGGLVPLVVDORIKLVKDEHDVSHWLWLRQWRWKLVFRXUW ZLOOQRWILQGWKDWDGLVWULFWFRXUWHUUHGE\GHQ\LQJDILVKLQJ H[SHGLWLRQPDVTXHUDGLQJDVGLVFRYHU\ ,,&HUWLILFDWHRI$SSHDODELOLW\ J 3RVW&RQYLFWLRQ5HFXVDO&ODLPV $IWHUWKHGLVWULFWFRXUWjVHQWU\RIMXGJPHQWDQGLVVXDQFHRI D &3& WKH 6XSUHPH &RXUW FRQVLGHUHG KRZ SURYLVLRQV 6WDQIRUG DOVR FRQWHQGV WKDW WKH GLVWULFW FRXUW HUUHG LQ FRQWDLQHGLQWKH$QWLWHUURULVPDQG(IIHFWLYH'HDWK3HQDOW\ FRQFOXGLQJWKDWKLVUHFXVDOFODLPVZHUHSURFHGXUDOO\GHIDXOWHG $FWRI m$('3$l 86&VKRXOGEH LQVWDWHFRXUW,QKLVKDEHDVSHWLWLRQ6WDQIRUGDOOHJHGWKDWKLV DSSOLHG LQ KDEHDV DFWLRQV LQLWLDWHG SULRU WR $('3$jV WULDOMXGJHsXGJH/HLEVRQZDVFRQVWLWXWLRQDOO\UHTXLUHGWR HQDFWPHQWEXWIRUZKLFKDSSHDOVZHUHILOHGDIWHU$('3$jV UHFXVHKLPVHOIIURPFRQGXFWLQJ6WDQIRUGjVWULDOEHFDXVHDW HQDFWPHQW6HH6ODFNY0F'DQLHO 86 7KH WKH WLPH RI WKH WULDO sXGJH /HLEVRQ ZDV FDPSDLJQLQJ IRU &RXUWKHOG HOHFWLRQ WR WKH .HQWXFN\ 6XSUHPH &RXUW $GGLWLRQDOO\ 6WDQIRUG DOOHJHG LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO FODLPV :KHQ D KDEHDV FRUSXV SHWLWLRQHU VHHNV WR LQLWLDWH DQ DULVLQJIURPWKHIDLOXUHRIsXGJH/HLEVRQWRUHFXVHKLPVHOI DSSHDORIWKHGLVPLVVDORIDKDEHDVFRUSXVSHWLWLRQDIWHU $SULO WKHHIIHFWLYHGDWHRI$('3$ WKHULJKW :H DIILUP WKH GLVWULFW FRXUWjV FRQFOXVLRQ WKDW 6WDQIRUG WRDSSHDOLVJRYHUQHGE\WKHFHUWLILFDWHRIDSSHDODELOLW\ SURFHGXUDOO\GHIDXOWHGKLVUHFXVDOFODLPV6WDQIRUGGLGQRW &2$ UHTXLUHPHQWVQRZIRXQGDW86& F UDLVHDQ\UHFXVDOFODLPVLQKLVSRVWFRQYLFWLRQPRWLRQWRWKH 7KLVLVWUXHZKHWKHUWKHKDEHDVFRUSXVSHWLWLRQZDVILOHG .HQWXFN\ 6XSUHPH &RXUW ,Q KLV SRVWFRQYLFWLRQ EULHI LQ WKH GLVWULFW FRXUW EHIRUH RU DIWHU $('3$ V HIIHFWLYH VXEPLWWHG WR WKH .HQWXFN\ 6XSUHPH &RXUW 6WDQIRUG GDWH DGGUHVVHGWKHPHULWVRIRQO\mHLJKWSRLQWVXUJHGIRUUHYHUVDOl 6HH6WDQIRUG6:GDW7KHUHIRUHWKH.HQWXFN\ ,GDW$SSO\LQJ6ODFNWKLVFRXUWKDVVWDWHGWKDWmZLWK 6XSUHPH &RXUWjV RSLQLRQ RQO\ DGGUHVVHG WKH PHULWV RI WKH UHVSHFWWRDSSHDOVLQLWLDWHGDIWHUWKHHIIHFWLYHGDWHRI$('3$ mHLJKWSRLQWVXUJHGIRUUHYHUVDOl6HHLGDW7KXVWKH LQ KDEHDV SURFHHGLQJV FRPPHQFHG SULRU WR WKDW GDWH SUH GLVWULFWFRXUWFRUUHFWO\FRQFOXGHGWKDWSRVWFRQYLFWLRQFODLPV $('3$ODZJRYHUQVWKHDSSHOODWHFRXUWjVUHYLHZRIWKHWULDO QRW LQFOXGHG LQ WKH mHLJKW SRLQWV XUJHG IRU UHYHUVDOl ZHUH FRXUWjVUXOLQJZKLOH$('3$jVUHTXLUHPHQWRIDFHUWLILFDWHRI SURFHGXUDOO\EDUUHG 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
H )HGHUDO(YLGHQWLDU\+HDULQJ DSSHDODELOLW\JRYHUQVWKHULJKWWRDSSHDOl0DFNH\Y'XWWRQ )G WK&LU 1H[W 6WDQIRUG FODLPV WKDW WKH GLVWULFW FRXUW HUUHG E\ GHQ\LQJKLPDIHGHUDOHYLGHQWLDU\KHDULQJLQFRQMXQFWLRQZLWK 8QGHUSRVW$('3$ F D&2$PD\LVVXHRQO\XSRQ KLV KDEHDV SHWLWLRQ +H ZDV QHYHU JUDQWHG DQ\ SRVW mDVXEVWDQWLDOVKRZLQJRIWKHGHQLDORIDFRQVWLWXWLRQDOULJKWl FRQYLFWLRQKHDULQJE\WKH.HQWXFN\VWDWHFRXUWV $OVRD&2$PXVWmLQGLFDWHZKLFKVSHFLILFLVVXHRULVVXHV VDWLVI\ WKH VKRZLQJ UHTXLUHGl 6HH 86& F *HQHUDOO\DKDEHDVSHWLWLRQHULVHQWLWOHGWRDQHYLGHQWLDU\ :KHUHDSSHDOVDUHLQLWLDWHGDIWHU$('3$jVHIIHFWLYHGDWHEXW KHDULQJ LQ IHGHUDO FRXUW LI WKH SHWLWLRQ mDOOHJHV VXIILFLHQW D GLVWULFW FRXUW JUDQWHG D &3& UDWKHU WKDQ D &2$ WKH JURXQGVIRUUHOHDVHUHOHYDQWIDFWVDUHLQGLVSXWHDQGWKHVWDWH UHYLHZLQJFRXUWPD\ FRQVLGHUDQLVVXHUDLVHGRQDSSHDOVR FRXUWV GLG QRW KROG D IXOO DQG IDLU HYLGHQWLDU\ KHDULQJl ORQJDVWKDWLVVXHVDWLVILHVWKHVWDWXWRU\&2$VWDQGDUGVVHW :LOVRQY.HPQD)G WK&LU FLWDWLRQ IRUWKLQ F 6HH0DFNH\)GDW DQGLQWHUQDOTXRWDWLRQRPLWWHG +RZHYHUDSHWLWLRQPD\EH VXPPDULO\GLVPLVVHGLIWKHUHFRUGFOHDUO\LQGLFDWHVWKDWWKH (YHQWKRXJKWKHGLVWULFWFRXUWRULJLQDOO\LVVXHGD&3&ZH SHWLWLRQHUjVFODLPVDUHHLWKHUEDUUHGIURPUHYLHZRUZLWKRXW QHHG QRW XQGHUWDNH &2$ DQDO\VLV RI WKH LVVXHV UDLVHG E\ PHULW6HHLG(YHQLQDGHDWKSHQDOW\FDVHmEDOGDVVHUWLRQV 6WDQIRUG RQ DSSHDO ,Q sDQXDU\ WKH GLVWULFW FRXUW DQGFRQFOXVRU\DOOHJDWLRQVGRQRWSURYLGHVXIILFLHQWJURXQG UHFRQFLOHG6ODFNDQGLWVSURJHQ\ZLWKWKHSURFHGXUDOKLVWRU\ WRZDUUDQWUHTXLULQJWKHVWDWHWRUHVSRQGWRGLVFRYHU\RUWR RI 6WDQIRUGjV KDEHDV SHWLWLRQ %HFDXVH 6WDQIRUG ILOHG KLV UHTXLUH DQ HYLGHQWLDU\ KHDULQJl =HWWOHPR\HU Y )XOFRPHU KDEHDVSHWLWLRQEHIRUH$('3$jVHIIHFWLYHGDWHEXWILOHGKLV )G G&LU QRWLFH RI DSSHDO DIWHU $('3$jV HIIHFWLYH GDWH WKH GLVWULFW FRXUWGHWHUPLQHGWKDWD&2$ZDVUHTXLUHG7KHUHIRUHLWVXD 7KHGLVWULFWFRXUWGLGQRWHUUE\GHQ\LQJ6WDQIRUGjVUHTXHVW VSRQWHLVVXHGD&2$mIRUDOOLVVXHVUDLVHGE\>6WDQIRUG@LQWKH IRUDQHYLGHQWLDU\KHDULQJ6WDQIRUGQHYHUVSHFLILHGZKLFKRI SHWLWLRQIRUZULWRIKDEHDVFRUSXVILOHGLQWKHGLVWULFWFRXUWDQG KLVIRUW\WZRKDEHDVFODLPVRIHUURUZDUUDQWHGDQHYLGHQWLDU\ SUHVHQWHGWRWKH8QLWHG6WDWHV&RXUWRI$SSHDOVIRUWKH6L[WK KHDULQJDQGQHYHUVSHFLILHGZKDWFRXOGEHGLVFRYHUHGWKURXJK &LUFXLW LQ WKH DSSHDO FXUUHQWO\ SHQGLQJ EHIRUH WKDW &RXUWl DQHYLGHQWLDU\KHDULQJ)XUWKHUPRUHKLVFODLPVZHUHHLWKHU 6WDQIRUGDSSHDOVIRXUWHHQRIKLVKDEHDVFODLPVDQGVLQFHD EDUUHGIURPUHYLHZRUZLWKRXWPHULW &2$LVVXHGIRUHDFKFODLPZHUHYLHZDOOIRXUWHHQ I 5XOH'LVFRYHU\0RWLRQ ,,,6WDQGDUGRI5HYLHZ 6WDQIRUG IXUWKHU DUJXHV WKDW WKH GLVWULFW FRXUW DEXVHG LWV %HFDXVH 6WDQIRUGjV KDEHDV SHWLWLRQ ZDV ILOHG LQ sDQXDU\ GLVFUHWLRQ E\ GHQ\LQJ GLVFRYHU\ SXUVXDQW WR 5XOH RI WKH SULRUWRWKHHIIHFWLYHGDWHRI$('3$ZHDSSO\WKHSUH 5XOHV*RYHUQLQJ86&FDVHV7KHGLVWULFWFRXUW $('3$ YHUVLRQ RI 86& ZKHQ UHYLHZLQJ WKH GLGQRWDEXVHLWVGLVFUHWLRQE\GHQ\LQJGLVFRYHU\ GLVWULFW FRXUWjV GHQLDO RI KLV KDEHDV SHWLWLRQ 6HH /LQGK Y 0XUSK\ 86 8QGHU SUH$('3$ +DEHDVSHWLWLRQHUVKDYHQRULJKWWRDXWRPDWLFGLVFRYHU\$ DQDO\VLV m>Z@H UHYLHZ D GLVWULFW FRXUWjV GHQLDO RI KDEHDV GLVWULFWFRXUWKDVGLVFUHWLRQWRJUDQWGLVFRYHU\LQDKDEHDVFDVH FRUSXV UHOLHI GH QRYR EXW ZH UHYLHZ DQ\ ILQGLQJV RI IDFW XSRQDIDFWVSHFLILFVKRZLQJRIJRRGFDXVHXQGHU5XOH6HH PDGHE\WKHGLVWULFWFRXUWIRUFOHDUHUURUl&RPEVY&R\OH %UDF\Y*UDPOH\86 %\UGY&ROOLQV )G WK &LU $ VWDWH FRXUW V IDFWXDO )G WK&LU 5XOH D SURYLGHV m$ ILQGLQJVmDUHHQWLWOHGWRFRPSOHWHGHIHUHQFHLIVXSSRUWHGE\ SDUW\VKDOOEHHQWLWOHGWRLQYRNHWKHSURFHVVHVRIGLVFRYHU\ WKHHYLGHQFHl,G8QGHUWKLVSUHVXPSWLRQRIFRUUHFWQHVVD 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
SHWLWLRQHUKDVWKHEXUGHQRImµHVWDEOLVK>LQJ@E\FRQYLQFLQJ DYHU\KHDY\EXUGHQ6HH8QLWHG6WDWHVY+RUWRQ)G HYLGHQFHWKDWWKHIDFWXDOGHWHUPLQDWLRQE\WKHVWDWHFRXUWLV WK&LU $VDJHQHUDOUXOHMRLQWWULDOVDUH HUURQHRXVjl&RHY%HOO )G WK&LU IDYRUHG6HH8QLWHG6WDWHVY'HPSVH\)G TXRWLQJ 0F4XHHQ Y 6FURJJ\ )G WK WK &LU sXURUV DUH SUHVXPHG WR IROORZ WKH &LU 7KLVmSUHVXPSWLRQRQO\DSSOLHVWREDVLFSULPDU\ LQVWUXFWLRQVRIWKHFRXUWDQGWRJLYHHDFKGHIHQGDQWjVFDVH IDFWVDQGQRWWRPL[HGTXHVWLRQVRIODZDQGIDFWlDQGmDOVR VHSDUDWH FRQVLGHUDWLRQ 6HH )UDQFLV Y )UDQNOLQ 86 DSSOLHVWRLPSOLFLWILQGLQJVRIIDFWORJLFDOO\GHGXFHGEHFDXVH Q 7KH PHUH SRWHQWLDO IRU FRQIXVLRQ RIWKHWULDOFRXUW VDELOLW\WRDGMXGJHWKHZLWQHVVHV GHPHDQRU VWDQGLQJ DORQH ZLOO QRW RXWZHLJK VRFLHW\jV LQWHUHVW LQ WKH DQGFUHGLELOLW\l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jV KLJKHVW FRXUW WKDW FODLP ZLOO EH WRWDOO\ WKH GHDWKHOLJLEOH FRGHIHQGDQWjV SHUVSHFWLYH WKH &RXUWjV H[KDXVWHGHYHQLIWKHVWDWHFRXUWVGRQRWFRQVLGHUWKHFODLPRQ KROGLQJQRQHWKHOHVVGHPRQVWUDWHVWKDWMRLQWWULDOVIRUGHDWK WKHPHULWV6HH+DUULVY5HHV )G WK HOLJLEOHDQGGHDWKLQHOLJLEOHFRGHIHQGDQWVDUHSHUPLVVLEOH &LU ,I DQ\WKLQJ EHFDXVH RI WKH H[FOXVLRQ RI SUHVXPDEO\ PRUH V\PSDWKHWLFMXURUVZKRFRXOGQRWEHGHDWKTXDOLILHGLWZRXOG :KHUH D SHWLWLRQHU KDV QRW IXOO\ DQG IDLUO\ SUHVHQWHG D EHIDUPRUHSODXVLEOHWKDWWKHGHDWKLQHOLJLEOHFRGHIHQGDQW IHGHUDOFODLPWRWKHVWDWHjVKLJKHVWFRXUWRUZKHQVWDWHFRXUWV ZRXOGEHSUHMXGLFHG KDYHKHOGWKDWFRQVLGHUDWLRQRISHWLWLRQHUjVFODLPLVEDUUHG GXHWRWKHSURFHGXUDOGHIDXOWLQVWDWHFRXUWDIHGHUDOFRXUW 6WDQIRUG ZDV QRW HQWLWOHG WR D VHSDUDWH WULDO IURP FR RUGLQDULO\ZLOOQRWFRQVLGHUWKHPHULWVRIWKDWFODLPXQOHVVWKH GHIHQGDQW%XFKDQDQ+HPDNHVQRFRQFUHWHDOOHJDWLRQWKDW SHWLWLRQHUFDQVKRZFDXVHWRH[FXVHKLVIDLOXUHWRSUHVHQWWKH KLVGXHSURFHVVULJKWVZHUHYLRODWHGE\DMRLQWWULDOEH\RQGWKH FODLPVDSSURSULDWHO\LQVWDWHFRXUWDQGDFWXDOSUHMXGLFHDVD FRQFHSWXDODUJXPHQWWKDWDMXU\PD\KDYHYLHZHGKLPDVWKH UHVXOW6HH&ROHPDQY7KRPSVRQ86 PRUH FXOSDEOH FRGHIHQGDQW EHFDXVH KH ZDV GHDWKHOLJLEOH 7HDJXH Y /DQH 86 7KH RQH DQG%XFKDQDQZDVGHDWKLQHOLJLEOH7KHMXU\ZDVUHSHDWHGO\ H[FHSWLRQWRWKLVUXOHLVZKHUHDSHWLWLRQHUVXEPLWVQHZDQG DGPRQLVKHG WR VHSDUDWHO\ FRQVLGHU WKH HYLGHQFH DV WR HDFK UHOLDEOHHYLGHQFHWKDWDFRQVWLWXWLRQDOYLRODWLRQKDVSUREDEO\ GHIHQGDQW DQG WKH UHFRUG UHYHDOV QR LQGLFDWLRQ WKDW WKH UHVXOWHGLQWKHFRQYLFWLRQRIDQLQQRFHQWLQGLYLGXDO,QFDVHV FRXUWjV LQVWUXFWLRQV ZHUH LJQRUHG %\ PHUHO\ DOOHJLQJ LQYROYLQJSUREDEOHLQQRFHQFHFRXUWVDGGUHVVWKHPHULWVRIWKH SRWHQWLDO MXURU FRQIXVLRQ 6WDQIRUG KDV QRW VDWLVILHG KLV GHIDXOWHGFODLPWRDYRLGDIXQGDPHQWDOPLVFDUULDJHRIMXVWLFH EXUGHQRIVKRZLQJWKDWVHSDUDWHWULDOVZHUHQHFHVVDU\ 6HH6FKOXSY'HOR86 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
ILQGLQJ WKDW D MRLQW WULDO IRU GHDWKHOLJLEOH DQG GHDWK ,9'LVFXVVLRQ LQHOLJLEOHFRGHIHQGDQWVLVSHUPLVVLEOH ZHZLOOQRWPDQGDWH XQLIRUPSURVHFXWLRQRIDOOFRGHIHQGDQWVLQFDSLWDOFDVHV D 0RUJDQFODLPV :H DIILUP WKH GLVWULFW FRXUWjV GHQLDO RI 6WDQIRUGjV IRXU 6WDQIRUGFRQWHQGVWKDWSXUVXDQWWRWKH6XSUHPH&RXUWjV (QPXQGFODLPV KROGLQJLQ0RUJDQY,OOLQRLV86 KHZDV XQFRQVWLWXWLRQDOO\ GHQLHG D ULJKW WR mOLIHTXDOLI\l KLV MXU\ G 7ULDO6HYHUDQFH 6SHFLILFDOO\KHDOOHJHVWKUHHFRQVWLWXWLRQDOYLRODWLRQV)LUVW KHDUJXHVWKDWWKHVWDWHWULDOFRXUWjVUHIXVDOWRDVNRUDOORZ $OWHUQDWLYHO\ 6WDQIRUG DUJXHV WKDW KLV WULDO VKRXOG KDYH GHIHQVH FRXQVHO WR DVN OLIHTXDOLI\LQJ YRLU GLUH TXHVWLRQV EHHQVHYHUHGIURPFRGHIHQGDQW%XFKDQDQjVWRHQVXUHDIDLU FRQVWLWXWHGFRQVWLWXWLRQDOHUURU6HFRQGKHDUJXHVWKDWWKH WULDOXQGHUWKH6L[WK(LJKWKDQG)RXUWHHQWK$PHQGPHQWV GLVWULFWFRXUWHUUHGLQFRQFOXGLQJWKDWKHZDVQRWHQWLWOHGWR $FFRUGLQJWR6WDQIRUGEHFDXVHKHZDVHOLJLEOHIRUWKHGHDWK WKH EHQHILW RI 0RUJDQ $QG WKLUG KH DUJXHV WKDW KLV SHQDOW\DQG%XFKDQDQZDVQRWDMXU\ZRXOGFRQVLGHUKLPWKH FRXQVHOjVIDLOXUHWROLIHTXDOLI\KLVMXU\FRQVWLWXWHGLQHIIHFWLYH PRUH FXOSDEOH RI WKH WZR FRGHIHQGDQWV DQG VHQWHQFH KLP DVVLVWDQFHRIFRXQVHO+HLVQRWHQWLWOHGWRKDEHDVUHOLHIRQ PRUH VHYHUHO\ ([HUFLVLQJ KLV GLVFUHWLRQ WKH WULDO MXGJH DQ\RIWKHVH0RUJDQFODLPV GHQLHG6WDQIRUGjVVHYHUDQFHPRWLRQV7KHGLVWULFWFRXUWGLG QRW ILQG FRQVWLWXWLRQDO HUURU LQ sXGJH /HLEVRQjV GHQLDO RI ,Q :LWKHUVSRRQ Y ,OOLQRLV 86 WKH VHYHUDQFHDQGQHLWKHUGRZH 6XSUHPH &RXUW GHWHUPLQHG WKDW LW ZDV SURSHU WR DVN SURVSHFWLYH MXURUV DERXW WKHLU YLHZV FRQFHUQLQJ WKH GHDWK $GHIHQGDQWLVQRWHQWLWOHGWRVHYHUDQFHPHUHO\EHFDXVHKH SHQDOW\ GXULQJ YRLU GLUH LQ FDSLWDO FDVHV 6XFK mGHDWK PLJKWKDYHKDGDEHWWHUFKDQFHRIDFTXLWWDOLQDVHSDUDWHWULDO TXDOLI\LQJl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mRQYRLUGLUHWKH GHIHQGDQWVPLVOHGRUFRQIXVHGWKHMXU\WKHPHUHIDFWWKDWFR FRXUW PXVW RQ GHIHQGDQWjV UHTXHVW LQTXLUH LQWR WKH GHIHQGDQWV EODPH HDFK RWKHU GRHV QRW FRPSHO VHYHUDQFH SURVSHFWLYHMXURUVjYLHZVRQFDSLWDOSXQLVKPHQWlEHFDXVHD &RXUWVVKRXOGJUDQWDVHYHUDQFHmRQO\LIWKHUHLVDVHULRXVULVN SURVSHFWLYHMXURUZKRZRXOGDOZD\VLPSRVHWKHGHDWKSHQDOW\ WKDWDMRLQWWULDOZRXOGFRPSURPLVHDVSHFLILFWULDOULJKWRIRQH PXVWQRWEHHPSDQHOHG0RUJDQ86DWm,IHYHQ RIWKHGHIHQGDQWVRUSUHYHQWWKHMXU\IURPPDNLQJDUHOLDEOH RQH VXFK MXURU LV HPSDQHOHG DQG WKH GHDWK VHQWHQFH LV MXGJPHQWDERXWJXLOWRULQQRFHQFHl=DILUR86DW LPSRVHGWKH6WDWHLVGLVHQWLWOHGWRH[HFXWHWKHVHQWHQFHl,G *UDQWLQJ RU GHQ\LQJ VHYHUDQFH LV ZLWKLQ WKH WULDO MXGJHjV DW GLVFUHWLRQ6HH*OLQVH\Y3DUNHU )G WK&LU $QGDVWDWHWULDOFRXUWjVDOOHJHGDEXVHRIGLVFUHWLRQ L 9RLU'LUH ZLWKRXWPRUHLVQRWDFRQVWLWXWLRQDOYLRODWLRQ6HH6LQLVWDMY %XUW)G WK&LU 7ZRW\SHVRIYRLUGLUHZHUHFRQGXFWHGGXULQJ6WDQIRUGjV WULDO )LUVW WKH FRXUW FRQGXFWHG LQGLYLGXDO YRLU GLUH DIWHU $ SHWLWLRQHU VHHNLQJ KDEHDV UHOLHI RQ WKH EDVLV RI D WULDO ZKLFKFRXQVHODVNHGOLPLWHGVFRSHIROORZXSTXHVWLRQV$QG FRXUWjVIDLOXUHWRVHYHUKLVWULDOIURPKLVFRGHIHQGDQWjVEHDUV VHFRQGFRXQVHOFRQGXFWHGJHQHUDOYRLUGLUHLQRSHQFRXUW 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
$WWKHFRPPHQFHPHQWRILQGLYLGXDOYRLUGLUH6WDQIRUGjV GHDWKHOLJLELOLW\WRWULJJHUPHQVHH7LVRQY$UL]RQD86 FRXQVHO ILOHG m'HIHQGDQWjV 3URSRVHG 9RLU 'LUH 4XHVWLRQV KROGLQJ mWKDW PDMRU SDUWLFLSDWLRQ LQ WKH &RQFHUQLQJ &DSLWDO 3XQLVKPHQWl D VHULHV RI WZHQW\QLQH IHORQ\ FRPPLWWHG FRPELQHG ZLWK UHFNOHVV LQGLIIHUHQFH WR TXHVWLRQVVL[RIZKLFKZHUHOLIHTXDOLI\LQJ7KHWULDOFRXUW KXPDQOLIHLVVXIILFLHQWWRVDWLVI\lGHDWKHOLJLELOLW\SXUVXDQW VDLGWKDWLWZRXOGEHDVNLQJmDOORIWKHLQGLYLGXDOYRLUGLUH WR(QPXQG WKHSUHPLVHXQGHUO\LQJKLV(QPXQGFODLPVWKDW TXHVWLRQVRIWKHsXU\lDQGWKDWLWZRXOGLQTXLUHLQWRWZRDUHDV WKHWULDOFRXUWGHFLGHGWKDW%XFKDQDQZDVGHDWKLQHOLJLEOH GHDWKTXDOLILFDWLRQDQGSUHH[LVWLQJSHUVRQDOFRPPLWPHQWV LVLQFRUUHFW ,PPHGLDWHO\ WKHUHDIWHU 6WDQIRUGjV FRXQVHO LQTXLUHG DV IROORZV m:HKDYHWHQGHUHGSURSRVHGTXHVWLRQVWRWKHFDSLWDO 7KH WULDO FRXUW PDGH LW FOHDU WKDW %XFKDQDQjV GHDWK SKDVH ZKLFK , WDNH LW DUH RYHUUXOHG"l 7KH WULDO MXGJH LQHOLJLEOHSURVHFXWLRQZDVQRWWKHUHVXOWRIDILQGLQJRIIDFWRQ UHVSRQGHGm
7KH GLVWULFW FRXUW GLG QRW HUU E\ ILQGLQJ DQ\ %UXWRQ DFFHSW QRU UHMHFW WKH GLVWULFW FRXUWjV KROGLQJ WKDW 0RUJDQ YLRODWLRQ KDUPOHVV 2YHUZKHOPLQJ HYLGHQFH RI 6WDQIRUGjV FUHDWHGDQHZUXOHRIODZWKDWXQGHU7HDJXHY /DQH JXLOW ZDV SUHVHQWHG DW WULDO )LUVW WKH MXU\ OHDUQHG WKDW 86 FRXOG QRW EH UHWURDFWLYHO\ DSSOLHG WR 6WDQIRUG KDG WZLFH DGPLWWHG NLOOLQJ 3RRUH 'D\V DIWHU KLV 6WDQIRUGjVFDVH DUUHVW6WDQIRUGVQHDNHGXSEHKLQGDVHFXULW\JXDUGSXWWKH HQG RI D SHQFLO DJDLQVW WKH JXDUGjV HDU DQG VDLG m&OLFN )RUWKHVDNHRIDUJXPHQWZHDVVXPHWKDW0RUJDQDSSOLHV FOLFNFOLFNMXVWOLNHWKHJLUO,jPJRLQJWREORZ\RXUIXFNLQJ UHWURDFWLYHO\WR6WDQIRUGjVFDVHPHDQLQJWKDWKHZDVHQWLWOHG EUDLQVRXWl$QGGD\VODWHUDFRUUHFWLRQVRIILFHURYHUKHDUG WR DVN OLIHTXDOLI\LQJ TXHVWLRQV RI KLV MXU\ YHQLUH SDQHO 6WDQIRUGEUDJJLQJWKDWKHVRGRPL]HGVKRWDQGNLOOHG3RRUH 0RUJDQ UHTXLUHV D WULDO FRXUW WR SHUPLW OLIHTXDOLI\LQJ EHFDXVH VKH FRXOG UHFRJQL]H DQG LGHQWLI\ KLP 6HFRQG TXHVWLRQVGXULQJYRLUGLUHRQO\ZKHUHDGHIHQGDQWjVFRXQVHO sRKQVRQWKHJHWDZD\GULYHUSURYLGHGH\HZLWQHVVWHVWLPRQ\ UHTXHVWV WKDW VXFK TXHVWLRQV EH DVNHG 0RUJDQ GRHV QRW WKDW6WDQIRUGVKRW3RRUH$QGWKLUGDPRXQWDLQRISK\VLFDO KRZHYHU VSHFLILFDOO\ UHTXLUH WKDW GHIHQGDQWjV FRXQVHO EH DQGFLUFXPVWDQWLDOHYLGHQFHo6WDQIRUGjVILQJHUSULQWVZHUH SHUPLWWHGWRDVNOLIHTXDOLI\LQJTXHVWLRQVGXULQJLQGLYLGXDO OLIWHGIURP3RRUHjVFDU KDLUVPDWFKLQJ6WDQIRUGjVKHDGDQG YRLUGLUH8QGHU0RUJDQDGHIHQGDQWjVULJKWWROLIHTXDOLI\ SXELFKDLUZHUHIRXQGRQ3RRUHjVERG\ 6WDQIRUGZDVVHHQ KLVMXU\FRXOGDOVREHVDWLVILHGGXULQJJHQHUDOYRLUGLUH:H FDUU\LQJDZD\VWROHQFDVHVRIFLJDUHWWHVIURPWKH&KHFNHUJDV DGRSWWKHVRXQGDQDO\VLVRIWKH.HQWXFN\6XSUHPH&RXUW VWDWLRQ DQG VWROHQ &KHFNHU NH\V ZHUH IRXQG DW 6WDQIRUGjV PRWKHUjVKRPHoSURYLGHGDEXQGDQWHYLGHQFHRI6WDQIRUGjV 6LPSO\ SXW WKH UXOLQJV DQG GLVFXVVLRQV RI UHFRUG JXLOW7KXVDQ\%UXWRQYLRODWLRQFRQVWLWXWHGKDUPOHVVHUURU FRQFHUQLQJ WKH OLVW RI TXHVWLRQV SURSRVHG E\ WKH GHIHQGDQWVQHYHUDGGUHVVHGWKHSURSULHW\RIDVNLQJWKH F (QPXQG&ODLPV TXHVWLRQVGXULQJWKHJHQHUDOYRLUGLUH:HFDQILQGQR UXOLQJVRQWKHPHULWVRIWKHTXHVWLRQVQRUDQ\KLQWRIKRZ 6WDQIRUGDOVRDOOHJHVIRXUVHSDUDWHFRQVWLWXWLRQDOYLRODWLRQV WKH FRXUW ZRXOG KDYH UXOHG KDG DSSHOODQWjV FRXQVHO DULVLQJXQGHU(QPXQGY)ORULGD86 +LV DWWHPSWHGWRDVNWKHTXHVWLRQVRIWKHMXURUVGXULQJWKH XQGHUO\LQJ(QPXQGFODLPZKLFKJLYHVULVHWRKLVRWKHUWKUHH FROOHFWLYHYRLUGLUH$VWKHWULDOFRXUWGLGQRWPDNHDQ\ LVWKDWWKHGLVWULFWFRXUWHUUHGE\PLVLQWHUSUHWLQJ(QPXQGDVLW UXOLQJV DGYHUVH WR WKH DSSHOODQW GXULQJ KLV FRXQVHOjV DSSOLHGWRFRGHIHQGDQW%XFKDQDQDQGDVDUHVXOWWKHGHDWK TXHVWLRQLQJRIWKHMXU\ZHFDQILQGQRHUURUSUHMXGLFLDO SHQDOW\ZDVVRXJKWDJDLQVWKLPEXWQRWDJDLQVW%XFKDQDQ+H WR DSSHOODQW :K\ KRZHYHU FRXQVHO FKRVH QRW WR DUJXHVWKDWKHZDVSUHMXGLFHGE\%XFKDQDQjVEHLQJWULHGDV H[SORUH WKH YHQLUHPHQjV SUHGLOHFWLRQ IRU LPSRVLQJ WKH GHDWKLQHOLJLEOHEHFDXVHVLQFHKHZDVGHDWKHOLJLEOHWKHMXU\ GHDWKSHQDOW\LVDTXHVWLRQZKLFKFDQQRWEHDWWULEXWHGWR ZRXOGYLHZKLPDVWKHPRUHFXOSDEOHGHIHQGDQWDQGVHQWHQFH DQ\DFWLRQRUIDLOLQJRIWKHWULDOFRXUW KLPPRUHVHYHUHO\6WDQIRUGjVRWKHUWKUHH(QPXQGFODLPVDUH YDULRXVLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPV:HDIILUP 6WDQIRUGY&RPPRQZHDOWK6:GDW LQWHUQDO WKHGLVWULFWFRXUWjVGHQLDORI6WDQIRUGjV(QPXQGFODLPV FLWDWLRQVDQGTXRWDWLRQVRPLWWHG $OORI6WDQIRUGjVFODLPVDULVHIURPKLVEHOLHIWKDWWKHWULDO (YHQDSSO\LQJ0RUJDQUHWURDFWLYHO\DV6WDQIRUGUHTXHVWV FRXUWHUUHGE\LQWHUSUHWLQJ(QPXQGWRPHDQWKDWFRGHIHQGDQW WKH WULDO FRXUWjV UHIXVDO WR SHUPLW OLIHTXDOLI\LQJ TXHVWLRQV %XFKDQDQKDGWREHWULHGDVGHDWKLQHOLJLEOHEHFDXVHKHZDV GXULQJ LQGLYLGXDO YRLU GLUH ZRXOG QRW FRQVWLWXWH IHGHUDO QRW WKH WULJJHUPDQ :KLOH 6WDQIRUG LV FRUUHFW WKDW WKH FRQVWLWXWLRQDOHUURU%HFDXVHKLVFRXQVHOZDVQRWSUHFOXGHG 6XSUHPH &RXUW ODWHU FODULILHG WKDW (QPXQG GLG QRW OLPLW IURPDVNLQJOLIHTXDOLI\LQJTXHVWLRQVGXULQJJHQHUDOYRLUGLUH 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
6WDQIRUG LV QRW HQWLWOHG WR KDEHDV UHOLHI RQ KLV ILUVW WZR WKHFULPHV6HH&UX]Y1HZ
H[FOXVLRQRIWKHFRQIHVVLRQ VHYHUDQFHRIWKHWULDORU 0RUJDQKROGVWKDWDGHIHQGDQWKDVWKHULJKWWROLIHTXDOLI\KLV UHGDFWLRQ RI WKH FRQIHVVLRQ WR DYRLG PHQWLRQ RU REYLRXV MXU\XSRQUHTXHVW%\SUHPLVLQJDGHIHQGDQWjVULJKWWROLIH LPSOLFDWLRQRIWKHQRQFRQIHVVLQJGHIHQGDQW6HH5LFKDUGVRQ TXDOLI\ XSRQ GHIHQVH FRXQVHOjV PDNLQJ D UHTXHVW WR OLIH Y0DUVK86 TXDOLI\ 0RUJDQ VXJJHVWV WKDW WKHUH DUH LQVWDQFHV ZKHUH GHIHQVH FRXQVHO PLJKW FKRRVH QRW WR DVN OLIHTXDOLI\LQJ %UXWRQYLRODWLRQVFDQRFFXUHYHQZKHUHDGHIHQGDQWjVQDPH TXHVWLRQVDVDPDWWHURIVWUDWHJ\3XUVXDQWWR0RUJDQIDLOXUH LVUHGDFWHGRUUHSODFHGIURPDQRQWHVWLI\LQJFRGHIHQGDQWjV WR OLIHTXDOLI\ D MXU\ LV QRW SHU VH LQHIIHFWLYH DVVLVWDQFH RI FRQIHVVLRQ,Q+RGJHVY5RVH)G WK&LU FRXQVHO WKH 6L[WK &LUFXLW KHOG WKDW DGPLVVLRQ RI D UHGDFWHG QRQ WHVWLI\LQJ FRGHIHQGDQWjV VWDWHPHQW FRQWDLQLQJ WKH ZRUG 6WDQIRUG SUHVHQWV QR HYLGHQFH WR FRXQWHUDFW RXU mEODQNlLQSODFHRIWKHGHIHQGDQWjVQDPHYLRODWHGWKH%UXWRQ SUHVXPSWLRQWKDWKLVFRXQVHOjVIDLOXUHWRDVNOLIHTXDOLI\LQJ UXOHm$OWKRXJKWKHRWKHUSDUW\LVUHIHUUHGWRDVµEODQNjLQWKH TXHVWLRQVGXULQJJHQHUDOYRLUGLUHFRQVWLWXWHGWULDOVWUDWHJ\ UHGDFWHGVWDWHPHQWWKHFLUFXPVWDQFHVRIWKHFDVHDQGRWKHU 7KHUHFRUGLVVLOHQWDVWRWKHUDWLRQDOHEHKLQGKLVFRXQVHOjV HYLGHQFHDGPLWWHGYLUWXDOO\FRPSHOWKHLQIHUHQFHWKDWµEODQNj SHUIRUPDQFH7KXVZHFDQGRQRPRUHWKDQVSHFXODWHDVWR LV>WKHGHIHQGDQW@l,GDW$QGLQ*UD\Y0DU\ODQG VRPHRIWKHUHDVRQVZK\6WDQIRUGjVFRXQVHOPLJKWQRWKDYH 86 WKH6XSUHPH&RXUWGLVFXVVHGWKH DVNHGOLIHTXDOLI\LQJTXHVWLRQVGXULQJJHQHUDOYRLUGLUH)LUVW GDQJHU RI UHGDFWLQJ D FRQIHVVLRQ E\ VLPSO\ UHPRYLQJ D KH PD\ KDYH PLVWDNHQO\ EXW KRQHVWO\ EHOLHYHG WKDW ZKHQ GHIHQGDQWjVQDPH m>7@KHREYLRXVGHOHWLRQ>RIDGHIHQGDQWjV sXGJH/HLEVRQH[FOXGHGKLVOLIHTXDOLI\LQJTXHVWLRQVGXULQJ QDPH@ PD\ ZHOO FDOO WKH MXURUVj DWWHQWLRQ VSHFLDOO\ WR WKH LQGLYLGXDO YRLU GLUH sXGJH /HLEVRQ ZDV H[FOXGLQJ WKRVH UHPRYHGQDPH%\HQFRXUDJLQJWKHMXU\WRVSHFXODWHDERXW TXHVWLRQV IRUDOOVWDJHVRIYRLUGLUHLQFOXGLQJJHQHUDOYRLU WKH UHIHUHQFH WKH UHGDFWLRQ PD\ RYHUHPSKDVL]H WKH GLUH 6HFRQG FRXQVHO PD\ QRW KDYH ZDQWHG WR DVN OLIH LPSRUWDQFHRIWKHFRQIHVVLRQjVDFFXVDWLRQl TXDOLI\LQJTXHVWLRQVGXULQJJHQHUDOYRLUGLUHEHFDXVHKHGLG QRWZDQWLQGLYLGXDOMXURUVWRKHDURQHDQRWKHUjVDQVZHUVWR :KHUH D %UXWRQ YLRODWLRQ RFFXUV D FRXUW PXVW WKHQ OLIHTXDOLI\LQJ TXHVWLRQV 3HUKDSV KH ZDV DIUDLG WKDW D GHWHUPLQHZKHWKHUWKDWYLRODWLRQLVKDUPOHVV7KHFRXUWPXVW SURVSHFWLYH MXURU HVSRXVLQJ GHDWK DV D SXQLVKPHQW ZRXOG GHFLGHmµZKHWKHUWKHµPLQGVRIDQDYHUDJHMXU\jlZRXOGKDYH LQIOXHQFHRWKHUMXURUV7KLUGE\WKHWLPHJHQHUDOYRLUGLUH IRXQGWKH6WDWHjVFDVHDJDLQVWDGHIHQGDQWmµVLJQLILFDQWO\OHVV RFFXUUHGGHIHQVHFRXQVHOPD\KDYHEHHQVDWLVILHGZLWKWKH SHUVXDVLYHjl KDG WKH LQFULPLQDWLQJ SRUWLRQ RI WKH FR FRPSRVLWLRQRIWKHMXU\DQGFRQILGHQWLQLWVDELOLW\WRKRQHVWO\ GHIHQGDQWjVVWDWHPHQWEHHQH[FOXGHG+RGJHV)GDW DQGDEO\SHUIRUPLWVGXWLHV$QGIRXUWKLIWKHMXU\SRROZDV TXRWLQJ 6FKQHEOH Y )ORULGD 86 Q VDWLVIDFWRU\GHIHQVHFRXQVHOPD\KDYHFDOFXODWHGWKDWDVNLQJ 5HOLHIPD\EHJUDQWHGRQFROODWHUDOUHYLHZRQO\LI DGGLWLRQDOOLIHTXDOLI\LQJTXHVWLRQVPLJKWDLGWKHSURVHFXWLRQ WKH WULDO HUURU mKDG VXEVWDQWLDO DQG LQMXULRXV HIIHFW RU LQGHFLGLQJKRZWRXVHLWVSHUHPSWRU\FKDOOHQJHV6HH%URZQ LQIOXHQFH LQ GHWHUPLQLQJ WKH MXU\ V YHUGLFW 8QGHU WKLV YsRQHV)G WK&LU m>&RXQVHOjV@ VWDQGDUGKDEHDVSHWLWLRQHUVDUHQRWHQWLWOHGWRKDEHDVUHOLHI GHFLVLRQ QRW WR DVN SRWHQWLDO MXURUV ZKHWKHU WKH\ ZRXOG EDVHGRQWULDOHUURUXQOHVVWKH\FDQHVWDEOLVKWKDWLWUHVXOWHGLQ DXWRPDWLFDOO\YRWHWRLPSRVHWKHGHDWKSHQDOW\DSSHDUVWR µDFWXDOSUHMXGLFHjl%UHFKWY$EUDKDPVRQ86 >EH@DWDFWLFDOGHFLVLRQEHFDXVHLWVHHPVUHDVRQDEOHIRUWULDO LQWHUQDO TXRWDWLRQ DQG FLWDWLRQ RPLWWHG $Q FRXQVHO WR ZDQW WR IRFXV WKH MXU\ RQ WKH LGHD RI WKH GHDWK HUURQHRXV DGPLVVLRQ RI D QRQWHVWLI\LQJ FRGHIHQGDQWjV SHQDOW\DVOLWWOHDVSRVVLEOH FRQIHVVLRQFDQFRQVWLWXWHKDUPOHVVHUURUZKHUHWKHGHIHQGDQW FODLPLQJD%UXWRQYLRODWLRQFRQIHVVHGWRIXOOSDUWLFLSDWLRQLQ 6WDQIRUGY3DUNHU 1R 1R 6WDQIRUGY3DUNHU
6LQFH RXU mVFUXWLQ\ RI FRXQVHOjV SHUIRUPDQFH PXVW EH 7KLUG FRQVLGHULQJ WKH WRWDOLW\ RI WKH HYLGHQFH WKHUH LV QR KLJKO\GHIHUHQWLDOl6WULFNODQG86DW DQG6WDQIRUG UHDVRQDEOHSUREDELOLW\WKDWHYHQLIGHIHQVHFRXQVHOHUUHGWKH KDV SUHVHQWHG QR HYLGHQFH WR UHEXW WKH SUHVXPSWLRQ WKDW VHQWHQFHU ZRXOG KDYH FRQFOXGHG WKDW WKH EDODQFH RI FRXQVHOjV IDLOXUH WR DVN OLIHTXDOLI\LQJ TXHVWLRQV GXULQJ DJJUDYDWLQJ DQG PLWLJDWLQJ FLUFXPVWDQFHV GLG QRW ZDUUDQW JHQHUDOYRLUGLUHFRQVWLWXWHGVRXQGWULDOVWUDWHJ\ZHUHMHFWKLV GHDWK 6HH 6WULFNODQG 86 DW $V LV UHTXLUHG LQHIIHFWLYHDVVLVWDQFHFODLPXQGHU6WULFNODQGjVSHUIRUPDQFH SXUVXDQW WR .\ 5HY 6WDW $QQ WKH .HQWXFN\ SURQJ 6XSUHPH&RXUWUHYLHZHG6WDQIRUGjVGHDWKVHQWHQFHRQGLUHFW DSSHDODQGGHWHUPLQHGWKDWWKHGHDWKVHQWHQFHZDVVXSSRUWHG $OWHUQDWLYHO\6WDQIRUGGRHVQRWVDWLVI\WKHSUHMXGLFHSURQJ E\ WKH HYLGHQFH LH WKH EDODQFH RI DJJUDYDWLQJ DQG RIWKH6WULFNODQGWHVW7RGHPRQVWUDWHLQHIIHFWLYHDVVLVWDQFH PLWLJDWLQJFLUFXPVWDQFHVZDUUDQWHGGHDWK6HH6WDQIRUG XQGHUWKHSUHMXGLFHSURQJm>W@KHGHIHQGDQWPXVWVKRZWKDW 6:GDW 6WDQIRUGjVWULDOZDVIXQGDPHQWDOO\IDLUDQG WKHUH LV D UHDVRQDEOH SUREDELOLW\ WKDW EXW IRU FRXQVHOjV FRXQVHOjVIDLOXUHWROLIHTXDOLI\WKHMXU\GLGQRWXQGHUPLQHWKH XQSURIHVVLRQDOHUURUVWKHUHVXOWRIWKHSURFHHGLQJZRXOGKDYH UHOLDELOLW\RIDQGFRQILGHQFHLQWKHUHVXOW6HH%URZQ EHHQ GLIIHUHQW $ UHDVRQDEOH SUREDELOLW\ LV D SUREDELOLW\ )G DW KROGLQJ RQ VLPLODU JURXQGV WKDW FRXQVHOjV VXIILFLHQWWRXQGHUPLQHFRQILGHQFHLQWKHRXWFRPHl,GDW IDLOXUH WR OLIHTXDOLI\ D MXU\ GLG QRW FRQVWLWXWH LQHIIHFWLYH m,Q PDNLQJ WKH GHWHUPLQDWLRQ ZKHWKHU WKH VSHFLILHG DVVLVWDQFHRIFRXQVHOXQGHU6WULFNODQGjVSUHMXGLFHSURQJ HUURUV UHVXOWHG LQ WKH UHTXLUHG SUHMXGLFH D FRXUW VKRXOG SUHVXPH DEVHQW FKDOOHQJH WR WKH MXGJPHQW RQ JURXQGV RI :H UHMHFW 6WDQIRUGjV FODLP WKDW WKH IDLOXUH RI KLV WULDO HYLGHQWLDU\ LQVXIILFLHQF\ WKDW WKH MXGJH RU MXU\ DFWHG FRXQVHOWRDVNOLIHTXDOLI\LQJTXHVWLRQVFRQVWLWXWHGLQHIIHFWLYH DFFRUGLQJ WR WKH ODZl ,G m7KH DVVHVVPHQW RI SUHMXGLFH DVVLVWDQFHRIFRXQVHO VKRXOGSURFHHGRQWKHDVVXPSWLRQWKDWWKHGHFLVLRQPDNHULV UHDVRQDEO\ FRQVFLHQWLRXVO\ DQG LPSDUWLDOO\ DSSO\LQJ WKH E %UXWRQFODLP VWDQGDUGV WKDW JRYHUQ WKH GHFLVLRQl ,G DW m>7@KH TXHVWLRQLVZKHWKHUWKHUHLVDUHDVRQDEOHSUREDELOLW\WKDWWKH 1H[W6WDQIRUGDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGE\ILQGLQJ VHQWHQFHUo LQFOXGLQJ DQ DSSHOODWH FRXUW WR WKH H[WHQW LW WKDW WKH DGPLVVLRQ RI QRQWHVWLI\LQJ FRGHIHQGDQW 'DYLG LQGHSHQGHQWO\UHZHLJKVWKHHYLGHQFHoZRXOGKDYHFRQFOXGHG %XFKDQDQjVFRQIHVVLRQDVUHFRXQWHGE\'HWHFWLYHsHUU\+DOO WKDWWKHEDODQFHRIDJJUDYDWLQJDQGPLWLJDWLQJFLUFXPVWDQFHV WRWKHMXU\FRQVWLWXWHGDKDUPOHVVYLRODWLRQRIWKH%UXWRQUXOH GLGQRWZDUUDQWGHDWKl,G:HDOVRPXVWDVNZKHWKHUWKH :HDJUHHZLWKWKHGLVWULFWFRXUW WULDO ZDV IXQGDPHQWDOO\ IDLU DQG ZKHWKHU FRXQVHOjV HUURUV OLNHO\ XQGHUPLQHG WKH UHOLDELOLW\ RI DQG FRQILGHQFH LQ WKH ,Q %UXWRQ Y 8QLWHG 6WDWHV 86 WKH UHVXOW 6HH /RFNKDUW Y )UHWZHOO 86 6XSUHPH &RXUW KHOG WKDW DGPLVVLRQ RI D FRGHIHQGDQW V FRQIHVVLRQLPSOLFDWLQJWKHQRQFRQIHVVLQJGHIHQGDQWYLRODWHG WKHQRQFRQIHVVLQJGHIHQGDQW V 6L[WK$PHQGPHQWULJKWVWR 8QGHU6WULFNODQGjVSUHMXGLFHSURQJ6WDQIRUGjVFRXQVHOj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jV IDLOXUH WR DVN OLIH 6PLWKY(VWHOOH )G WK&LU +HQFH TXDOLI\LQJTXHVWLRQVOHGWRWKHLPSDQHOPHQWRIDSDUWLDOMXU\ ZKHUH D %UXWRQ VLWXDWLRQ H[LVWV WKH FRXUW PD\ SURWHFW WKH QRQFRQIHVVLQJ GHIHQGDQW V 6L[WK $PHQGPHQW ULJKWV E\
Stanford v. Parker (Stanford v. Parker) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.