Taylor v. Withrow

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

(5,& : 7$

  7D\ORUY:LWKURZ 1R

$SSHOODQW  6WXDUW * )ULHGPDQ 3O\PRXWK 0LFKLJDQ IRU $SSHOOHH 0(55,77sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK 0225( s MRLQHG  %2**6 s SS  GHOLYHUHG D VHSDUDWHRSLQLRQFRQFXUULQJLQWKHMXGJPHQWRIWKHFRXUWDV H[SUHVVHGLQ3DUW,,' BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 0(55,77 &LUFXLW sXGJH  ,Q WKLV FDVH WKH UHVSRQGHQW ZDUGHQ 3DPHOD :LWKURZ KHUHDIWHU m6WDWHl DSSHDOV WKH GLVWULFWFRXUWjVJUDQWRIDZULWRIKDEHDVFRUSXVWRSHWLWLRQHU (ULF7D\ORUZKRZDVFRQYLFWHGRIVHFRQGGHJUHHPXUGHULQ 0LFKLJDQ LQ   7KH GLVWULFW FRXUW LVVXHG WKH ZULW DIWHU ILQGLQJWKDWWKHWULDOFRXUWKDGGHSULYHG7D\ORURIKLVULJKWWR GXH SURFHVV ZKHQ LW UHIXVHG WR LQVWUXFW WKH MXU\ RQ WKH GHIHQVHV RI VHOIGHIHQVH DQG LPSHUIHFW VHOIGHIHQVH  )RU UHDVRQVVHWRXWEHORZZH5(9(56(WKHGLVWULFWFRXUWjVJUDQW RIWKHZULW ,)DFWV 7KH IDFWV RI WKH FDVH DUH VHW RXW LQ WKH GLVWULFW FRXUWjV GHFLVLRQDQG ZH UHSHDWRQO\WKRVHQHFHVVDU\WRVNHWFKWKH UHOHYDQWHYHQWV6HH7D\ORUY:LWKURZ)6XSSG ('0LFK (DUO\ LQ WKH PRUQLQJ RI 'HFHPEHU   (ULF 7D\ORU ZHQWWRDSDUW\DWDSULYDWHKRPHLQ$QQ$UERU0LFKLJDQ$W WKH SDUW\ ZHUH D QXPEHU RI KLV DFTXDLQWDQFHV LQFOXGLQJ 6KDORQGD sRQHV ZKR ZDV WKH PRWKHU RI KLV FKLOG 6WHYHQ +RUJURZDQG0LFKDHO)UDQNOLQ$OOSUHVHQWZHUHGULQNLQJ DOFRKRODQGVPRNLQJPDULMXDQD7D\ORUEURXJKWDJXQWRWKH SDUW\:KLOHDFFRXQWVRIH[DFWO\ZKDWRFFXUUHGDWWKHSDUW\ GLIIHUDOOWKHZLWQHVVHVDJUHHWKDW7D\ORUZDVDQJU\DWsRQHV DQGDFFXVHGKHURImPHVVLQJDURXQGZLWKl+RUJURZ$IWHU OHDYLQJ WKH SDUW\ IRU D IHZ PLQXWHV 7D\ORU UHWXUQHG DQG 1R 7D\ORUY:LWKURZ 

TXDUUHOHG ZLWK  +RUJURZ  )ROORZLQJ D EULHI H[FKDQJH +RUJURZFKDOOHQJHG7D\ORUWRDILJKWDQGVHYHUDORIWKHPHQ DWWKHSDUW\DWWHPSWHGHLWKHUWRVHSDUDWHWKHWZRWKHLUVWRU\ RU MRLQ +RUJURZjV FKDOOHQJH WR 7D\ORU 7D\ORUjV VWRU\ 7D\ORUWKHQSXOOHGRXWKLVJXQ7KHJXQZHQWRIIILULQJRQH VKRW+RUJURZZDVNLOOHGE\WKHVKRWDQG DIWHUWKHEXOOHW SDVVHGWKURXJKKLPLWVWUXFNDQGVHYHUHO\LQMXUHG0LFKDHO )UDQNOLQ)ROORZLQJWKHVKRRWLQJDOOSDUW\JRHUVIOHGH[FHSW IRU7D\ORUZKRVWD\HGDQGSHUIRUPHG&35RQ+RUJURZ $W WULDO 7D\ORU ZDV FKDUJHG ZLWK  mRSHQ PXUGHUl D 0LFKLJDQ FKDUJH DOORZLQJ WKH MXU\ WR ILQG HLWKHU ILUVW RU VHFRQGGHJUHH PXUGHU  DVVDXOW ZLWK LQWHQW WR FRPPLW PXUGHUFDUU\LQJDFRQFHDOHGZHDSRQDQGSRVVHVVLRQ RIDILUHDUPLQWKHFRPPLVVLRQRIDIHORQ\+HWHVWLILHGLQKLV RZQGHIHQVHWKDWKHEURXJKWWKHJXQWRWKHSDUW\EHFDXVHKH EHOLHYHG+RUJURZZDVDUPHGWKDWKHSXOOHGWKHZHDSRQRQO\ ZKHQKHEHOLHYHGKHZDVDERXWWREHDWWDFNHGDQGWKDWKHKDG QRWLQWHQGHGWRILUHWKHJXQEXWWKDWLWDFFLGHQWDOO\ZHQWRIILQ DVFXIIOH'XULQJWULDO7D\ORUj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jV DGPRQLWLRQ WR GLVUHJDUGWKHWULDOODZ\HUVjFRPPHQWVLIWKH\GLIIHUHGIURPWKH MXU\LQVWUXFWLRQVs$DW$WFORVLQJ7D\ORUjVFRXQVHO FKLHIO\DUJXHGDFFLGHQWDVDGHIHQVHIRUKLVFOLHQW  7D\ORUY:LWKURZ 1R 1R 7D\ORUY:LWKURZ 

7KHMXU\FRQYLFWHG7D\ORURIVHFRQGGHJUHHPXUGHUDVVDXOW 7KLVSULQFLSOHGRHVQRWPHDQWKDWZHFDQQHYHULQWHUSUHWWKH ZLWK LQWHQW WR GR JUHDW ERGLO\ KDUP FDUU\LQJ D FRQFHDOHG FRQWRXUVRIDFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW ZHDSRQDQGSRVVHVVLRQRIDILUHDUPLQWKHFRPPLVVLRQRID QRUWKDWWKH&RXUWPXVWKDYHUXOHGRQH[DFWO\WKLVVDPHVHWRI IHORQ\ IDFWV+RZHYHUWRLQWHUSUHWFOHDUO\HVWDEOLVKHGSUHFHGHQWDV UHVWLQJSULPDULO\RQmWKHVWDWHPHQWRIEURDGSULQFLSOHVDQG 7D\ORU DSSHDOHG FODLPLQJ LQWHU DOLD WKDW KH KDG EHHQ VWDQGDUGVlDVRXUFRXUWVWDWHVDWSDJHZRXOGJRWRRIDU GHSULYHGRIKLVULJKWVXQGHUWKH)LIWKDQG6L[WK$PHQGPHQWV 7KLV LV SDUWLFXODUO\ WUXH ZKHQ RXU MXGJPHQW LV EDVHG RQ ZKHQWKHWULDOFRXUWUHIXVHGWRLQVWUXFWWKHMXU\RQVHOIGHIHQVH SULQFLSOHVDVEURDGDVmRXUOHJDOKHULWDJHlDQGmWKHULJKWWR DQGDWWHPSWHGVHOIGHIHQVH+LVFRQYLFWLRQDQGVHQWHQFHZHUH SUHVHQWDPHDQLQJIXOGHIHQVHl3DJH$WDKLJKHQRXJK DIILUPHGE\WKH0LFKLJDQ&RXUWRI$SSHDOVDQGKLVDSSHDO OHYHORIJHQHUDOLW\YLUWXDOO\DQ\UHVXOWFDQEHGHULYHGIURP ZDVGHQLHGE\WKH0LFKLJDQ6XSUHPH&RXUW6HH3HRSOHY SULQFLSOHVDVEURDGDVmGXHSURFHVVlRUmWKHUXOHRIODZl,I 7D\ORU 1R  0LFK &W $SS sXO\   OHDYH $('3$ LV WR KDYH DQ\ PHDQLQJ WKH SKUDVH mFOHDUO\ GHQ1:G0LFKUHFRQVLGHUDWLRQGHQ HVWDEOLVKHG SUHFHGHQWl PXVW UHIHU WR UHVXOWV WKDW ORJLFDOO\ 1:G0LFK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jVULJKWVXQGHUWKH)LIWK VSHFXODWLRQ HYHQ LI ZLVH VSHFXODWLRQ EDVHG RQ ZKDW WKH DQG6L[WK$PHQGPHQWVDQGIXUWKHUIRXQGWKDWWKLVHUURUZDV 6XSUHPH&RXUWKDVQRWKHOGWRVDWLVI\$('3$*LYHQWKDW QRWKDUPOHVV6HHLGDW7KHFRXUWJUDQWHGWKHZULW WKH6XSUHPH&RXUWKDVLQHYLWDEO\QRWKHOGIDUPRUHWKDQLWKDV DQGWKHVWDWHWLPHO\DSSHDOHG KHOGWKHH[FHSWLRQSURSRVHGWRGD\ZRXOGFHUWDLQO\RSHQWKH GRRUWRXQGHUPLQLQJWKH$('3$UXOH ,,$QDO\VLV $6WDQGDUGRI5HYLHZ ,QDQDSSHDORIDKDEHDVSURFHHGLQJZHFXVWRPDULO\UHYLHZ WKHGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGHQRYRDQGLWVIDFWXDO ILQGLQJVIRUFOHDUHUURU6HH0LOOHUY)UDQFLV)G

 7D\ORU DOVR FODLPHG LQ KLV DSSOLFDWLRQ IRU D ZULW WKDW KLV ULJKWV ZHUH YLRODWHG ZKHQ  WKH WULDO FRXUW UHIXVHG WR OHW KLP SUHVHQW DGGLWLRQDO HYLGHQFH RI WKH YLFWLPjV FKDUDFWHU DQG  GXULQJ MXU\ GHOLEHUDWLRQV WKH WULDO MXGJH WRRN OHDYH DQG ZDV UHSODFHG E\ WZR RWKHU MXGJHV 6HH 7D\ORU  )6XSSG DW  +DYLQJ JUDQWHG WKH ZULW RQ WKH FODLPV RI LPSURSHU MXU\ LQVWUXFWLRQV WKH GLVWULFW FRXUW GLG QRW UHDFK WKHVH DGGLWLRQDO FODLPV DQG WKH\ DUH QRW SDUW RI WKLV DSSHDO  7D\ORUY:LWKURZ 1R 1R 7D\ORUY:LWKURZ 

BBBBBBBBBBBBBBBBBBBBBB  WK &LU   :KHQ WKH GLVWULFW FRXUW UHOLHV RQ D WUDQVFULSW IURP WKH SHWLWLRQHUjV VWDWH WULDO DQG PDNHV QR &21&855(1&( LQGHSHQGHQW GHWHUPLQDWLRQV RI IDFW ZH UHYLHZ WKH GLVWULFW BBBBBBBBBBBBBBBBBBBBBB FRXUWjVIDFWXDOILQGLQJVGHQRYRDVZHOO6HHLG %2**6 &LUFXLW sXGJH FRQFXUULQJ  , FRQFXU LQ WKH %+DEHDV6WDQGDUGVDQG7KH$QWLWHUURULVPDQG(IIHFWLYH MXGJPHQWRIWKHFRXUWDVH[SUHVVHGLQ3DUW,,'+RZHYHU, 'HDWK3HQDOW\$FW DPXQDEOHWRFRQFXULQWKHFRXUWjVKROGLQJLQ3DUW,,&WKDW GHQLDORIDMXU\LQVWUXFWLRQRQVHOIGHIHQVHYLRODWHVWKH8QLWHG 8QGHU UXOHV VHW GRZQ LQ WKH $QWLWHUURULVP DQG (IIHFWLYH 6WDWHV&RQVWLWXWLRQDVDPDWWHURImFOHDUO\HVWDEOLVKHG)HGHUDO 'HDWK3HQDOW\$FWRIWKHm$QWLWHUURULVP$FWlRUm$FWl ODZDVGHWHUPLQHGE\WKH6XSUHPH&RXUWRIWKH8QLWHG6WDWHV DIHGHUDOFRXUWPD\QRWJUDQWDZULWRIKDEHDVWRDSHWLWLRQHU l86&†G 7KHRSLQLRQGRHVQRWFLWHDQG LQVWDWHFXVWRG\ZLWKUHVSHFWWRDQ\FODLPDGMXGLFDWHGRQWKH ,KDYHEHHQXQDEOHWRILQGDQ\6XSUHPH&RXUWFDVHKROGLQJ PHULWVLQVWDWHFRXUWXQOHVVWKHVWDWHFRXUWjVGHFLVLRQmZDV WKDWWKHULJKWWRSUHVHQWDGHIHQVHLQFOXGHVDULJKWWRVSHFLILF FRQWUDU\ WR RU LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI MXU\ LQVWUXFWLRQV DW DOO PXFK OHVV DQ LQVWUXFWLRQ RQ DQ\ FOHDUO\HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH SDUWLFXODUJURXQGRQZKLFKWKHFULPLQDOGHIHQGDQWKDVRIIHUHG &RXUWl86&†G  6XSS9,,RUWKH VXIILFLHQWHYLGHQFHWRVXSSRUWDMXU\YHUGLFW VWDWH FRXUWjV GHFLVLRQ mZDV EDVHG RQ DQ XQUHDVRQDEOH GHWHUPLQDWLRQRIWKHIDFWVLQOLJKWRIWKHHYLGHQFHSUHVHQWHGLQ 7KH RSLQLRQ VWDWHV WKDW WKLV SURSRVLWLRQ LV D UDUH ELUG D WKH6WDWHFRXUWSURFHHGLQJVl,G†G  IXQGDPHQWDOFRQVWLWXWLRQDOUXOHVRXQH[FHSWLRQDOWKDWLWKDV QHYHU EHHQ GUDZQ LQWR TXHVWLRQ  7KLV LV SUREDEO\ WUXH 7KH$FWVHWVDKLJKHUKXUGOHIRUWKRVHVHHNLQJKDEHDVWKDQ KRZHYHU ZH DUH QRW IUHH WR PDNH RXU RZQ FRQVWLWXWLRQDO EHIRUHEXWLWGRHVQRWUHTXLUHWKDWWKH6XSUHPH&RXUWPXVW DGMXGLFDWLRQ   :H PXVW ILQG WKDW WKLV IXQGDPHQWDO KDYHSUHYLRXVO\GHFLGHGWKHYHU\FDVHWKDWDORZHUFRXUWKDV FRQVWLWXWLRQDOUXOHKDVEHHQFOHDUO\HVWDEOLVKHGE\6XSUHPH EHIRUHLW,Q:LOOLDPVY7D\ORUWKH6XSUHPH&RXUWZDUQHG &RXUWSUHFHGHQW,WKDVQRWEHHQ WKDWmFOHDUO\HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH 6XSUHPH&RXUWlUHIHUVWR6XSUHPH&RXUWGHFLVLRQVQRWWKRVH RI ORZHU IHGHUDO FRXUWV DQG mUHIHUV WR WKH KROGLQJV DV RSSRVHGWRWKHGLFWDRI>WKH@&RXUWjVGHFLVLRQVDVRIWKHWLPH  RI WKH UHOHYDQW VWDWHFRXUW GHFLVLRQl   86   :HUH ZH QRW FRQVWUDLQHG E\ $('3$ ZH PLJKW XQGHUWDNH RXU RZQ VHHDOVR%UXPOH\Y:LQJDUG)G FRQVWLWXWLRQDO DQDO\VLV DQG ILQG VXFK D FRQVWLWXWLRQDO ULJKW )RU H[DPSOH WKH FDVHV FLWHG WR VKRZ WKDW D IDLOXUH WR JUDQW D GHIHQVH LQVWUXFWLRQ LV D WK&LU$WWKHVDPHWLPHFOHDUO\HVWDEOLVKHGODZ FRQVWLWXWLRQDO YLRODWLRQ UHVWHG RQ SUH$('3$ GHFLVLRQV E\ WKRVH FLUFXLWV XQGHUWKH$FWHQFRPSDVVHVPRUHWKDQMXVWEULJKWOLQHUXOHV 6HH HJ 6ORDQ Y *UDPOH\  :/  DW

 WK &LU 0D\  ODLG GRZQ E\ WKH &RXUW  ,W DOVR FOHDUO\ LQFOXGHV OHJDO  FLWLQJ (YHUHWWH Y 5RWK  )G   WK &LU  &OHPRQV SULQFLSOHVDQGVWDQGDUGVHQXQFLDWHGLQWKH&RXUWjVGHFLVLRQV Y 'HOR  )G  WK &LU  FLWLQJ 8QLWHG 6WDWHV Y 6ROHP  $V WKH &RXUW VWDWHG D VWDWH FRXUW GHFLVLRQ PDNHV mDQ )G   WK &LU  )XUWKHUPRUH WKHVH GHFLVLRQV DUH QRW 6XSUHPH &RXUW SUHFHGHQW DQG FDQQRW KDYH DQ\ LPSDFW ZKDWVRHYHU RQ RXU XQUHDVRQDEOHDSSOLFDWLRQRIWKLV&RXUWjVSUHFHGHQWlZKHQWKH DQDO\VLV FRXUW mXQUHDVRQDEO\ H[WHQGV D OHJDO SULQFLSOH IURP RXU SUHFHGHQWWRDQHZFRQWH[WZKHUHLWVKRXOGQRWDSSO\l  7KH FRXUW DJUHHV DW SDJH  m7KHUH LV QR 6XSUHPH &RXUW GHFLVLRQ EXWLWLVLPSRUWDQWWRHPSKDVL]HWKH&RXUWVDLGDWWKHVDPH XQPLVWDNDEO\ VHWWLQJ GRZQ WKLV SUHFLVH UXOH    l RXU LQTXLU\ VKRXOG EH WLPH WKDW D ORZHU FRXUW DOVR HUUV ZKHQ LW mXQUHDVRQDEO\ HQGHG DW WKDW SRLQW  7D\ORUY:LWKURZ 1R 1R 7D\ORUY:LWKURZ 

UHIXVHV WR H[WHQG WKDW SULQFLSOH WR D QHZ FRQWH[W ZKHUH LW EHFDXVHWKHVHGHIHQVHVZHUHLQFRQVLVWHQWZLWKDFFLGHQW7KH VKRXOGDSSO\l:LOOLDPV86DWHPSKDVLVDGGHG WULDOMXGJHjVVWDWHGUHDVRQIRUUHIXVLQJWRLQVWUXFWWKHMXU\RQ VHOIGHIHQVH ZDV WKDW KH EHOLHYHG WKDW GHIHQVH ZDV QRW 7KH6XSUHPH&RXUWKDVZDUQHGORZHUIHGHUDOFRXUWWREH VXSSRUWHG E\ WKH HYLGHQFH DQG WKH 0LFKLJDQ &RXUW RI FDXWLRXVLQILQGLQJWKDWDVWDWHFRXUWKDVGHFLGHGmFRQWUDU\WR $SSHDOV UHDFKHG WKH VDPH FRQFOXVLRQ  6HH 0LFKLJDQ Y RUPDGHDQXQUHDVRQDEOHDSSOLFDWLRQRIlFOHDUO\HVWDEOLVKHG 7D\ORU1RVOLSRSDW(YHQDVVXPLQJKRZHYHU IHGHUDOODZ8QGHUWKH$FWDVWDWHFRXUWjVGHFLVLRQZLOOEH WKDW WKH WULDO MXGJH GLG UHIXVH WR LQVWUXFW WKH MXU\ RQ ERWK FRQWUDU\WR6XSUHPH&RXUWSUHFHGHQWRQO\mLIWKHVWDWHFRXUW DFFLGHQW DQG VHOIGHIHQVH EHFDXVH KH EHOLHYHG WKH\ ZHUH DUULYHV DW D FRQFOXVLRQ RSSRVLWH WR WKDW UHDFKHG E\ >WKH LQFRPSDWLEOHWKDWDORQHZRXOGQRWMXVWLI\DJUDQWRIKDEHDV 6XSUHPH@&RXUWRQDTXHVWLRQRIODZlRULIWKHVWDWHFRXUW 0LFKLJDQODZPD\ZHOOUHTXLUHDVWDWHFRXUWWROHWDGHIHQGDQW mFRQIURQWVIDFWVWKDWDUHPDWHULDOO\LQGLVWLQJXLVKDEOHIURPD DVVHUWLQFRQVLVWHQWGHIHQVHVZKHQVXSSRUWHGE\WKHHYLGHQFH UHOHYDQW 6XSUHPH &RXUW SUHFHGHQWl DQG DUULYHV DW D VHH3HRSOHY0LOOV1:G0LFK FRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\WKH&RXUW,GDW DQGRQRFFDVLRQHYHQIHGHUDOFRXUWVPLJKWEHUHTXLUHGWRRIIHU 6LPLODUO\ UHVWULFWLYH LV WKH &RXUWjV JXLGDQFH RQ ZKDW LQVWUXFWLRQV RQ LQFRQVLVWHQW GHIHQVHV ZKHQ WKH HYLGHQFH FRQVWLWXWHVDQmXQUHDVRQDEOHDSSOLFDWLRQlRIIHGHUDOODZ,WLV VXSSRUWVERWKLQVWUXFWLRQVVHH0DWKHZV86DW QRWHQRXJKWKDWDVWDWHFRXUWFRUUHFWO\LGHQWLILHGDJRYHUQLQJ 1RWDOOVWDWHVKRZHYHUIROORZWKLVUXOHVHH0LOWRQ5REHUWV OHJDO SULQFLSOH EXW PLVWDNHQO\ DSSOLHG LW  D IHGHUDO FRXUW $QQRWDWLRQ$FFXVHGjVULJKWLQKRPLFLGHFDVHWRKDYHMXU\ VKRXOGRQO\LVVXHDZULWLIWKHVWDWHFRXUWjVDSSOLFDWLRQZDV LQVWUXFWHGDVWRERWKXQLQWHQWLRQDOVKRRWLQJDQGVHOIGHIHQVH mREMHFWLYHO\XQUHDVRQDEOHl,GDW $/5WK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jV FODLP WKHQ ZH PXVW ILUVW GHWHUPLQH ZKHWKHU KH PDNHVKLVFODLPXQGHUDYDOLGUXOHRIODZDQGRQO\WKHQWXUQ )RUWKHUHDVRQVVHWRXWDERYHZH5(9(56(WKHGHFLVLRQRI WRGHFLGHZKHWKHULQKLVSDUWLFXODUFDVHWKDWUXOHZDVYLRODWHG WKHGLVWULFWFRXUWWRJUDQWWKHZULWDQG5(0$1'IRUIXUWKHU SURFHHGLQJVFRQVLVWHQWZLWKWKLVGHFLVLRQ :LWKLQ EURDG OLPLWV WKH IHGHUDO FRXUWV GHIHU WR VWDWHV RQ PRVWPDWWHUVFRQFHUQLQJKRZWKH\UHJXODWHFULPLQDOWULDOV$V WKH6XSUHPH&RXUWKDVQRWHGmSUHYHQWLQJDQGGHDOLQJZLWK FULPHLVPXFKPRUHWKHEXVLQHVVRIWKH6WDWHVWKDQLWLVRIWKH )HGHUDO*RYHUQPHQWlDQGIHGHUDOFRXUWVVKRXOGEHUHOXFWDQW WRPHGGOHLQFULPLQDOSURFHGXUHVHVWDEOLVKHGIRUYDOLGUHDVRQV E\VWDWHV3DWWHUVRQY1HZ

QRWPHWDQGZH DUHXQDEOHWRILQG0LFKLJDQjVHYLGHQWLDU\ FRXUW SURFHHGLQJV LQ DQ\ PDQQHU DW DOO  7KHUH DUH D IHZ UHTXLUHPHQWVRQWKLVVXEMHFWWREHXQFRQVWLWXWLRQDO FXVWRPV DQG SULQFLSOHV mVR URRWHG LQ WKH WUDGLWLRQV DQG FRQVFLHQFHRIRXUSHRSOHDVWREHUDQNHGDVIXQGDPHQWDOlDQG 7D\ORU GLG QRW WHVWLI\ WKDW WKH VKRRWLQJ ZDV SXUH VHOI GHSULYLQJ DGHIHQGDQWRIRQHRIWKHVHLQDFULPLQDOWULDOLV GHIHQVH,QVWHDGKHGHSLFWHGLWDVDPL[RIDFFLGHQWDQGVHOI FRQVWLWXWLRQDO HUURU  (JHOKRII  86 DW  TXRWLQJ GHIHQVH+HLQLWLDOO\SXOOHGWKHJXQKHWHVWLILHGEHFDXVHKH 3DWWHUVRQ86DW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jVULJKWVXQGHUWKH GXH SURFHVV FODXVH  ,W LV LQGLVSXWDEO\ IHGHUDO ODZ DV 8QGHU0LFKLJDQODZKRZHYHUm>D@ILQGLQJWKDWDGHIHQGDQW DQQRXQFHG E\ WKH 6XSUHPH &RXUW WKDW D GHIHQGDQW LQ D DFWHGLQMXVWLILDEOHVHOIGHIHQVHQHFHVVDULO\UHTXLUHVDILQGLQJ FULPLQDOWULDOKDVWKHULJKWWRmDPHDQLQJIXORSSRUWXQLW\WR WKDW WKH GHIHQGDQW DFWHG LQWHQWLRQDOO\ EXW WKDW WKH SUHVHQWDFRPSOHWHGHIHQVHl&DOLIRUQLDY7URPEHWWD FLUFXPVWDQFHVMXVWLILHGKLVDFWLRQVl3HRSOHY+HIOLQ 86VHHDOVR&KDPEHUVY0LVVLVVLSSL 1:G   0LFK   0LFKLJDQ GRHV QRW DOORZ D 86    +DUULQJWRQ Y sDFNVRQ  :/ GHIHQGDQW WR FODLP MXVWLILHG VHOIGHIHQVH DV D GHIHQVH WR  DW

 WK &LU sDQXDU\  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jV IRUPXODWLRQ RI WKH VHOI 7KH ULJKW WR FODLP VHOIGHIHQVH LV GHHSO\ URRWHG LQ RXU GHIHQVHUXOHLVXQFRQVWLWXWLRQDO7KHUHLVQRSUHFHGHQWIRU WUDGLWLRQV6HH(JHOKRII86DWm2XUSULPDU\JXLGH VXFK D FRQFOXVLRQ DQG LW FHUWDLQO\ GRHV QRW YLRODWH FOHDUO\ LQ GHWHUPLQLQJ ZKHWKHU WKH SULQFLSOH LQ TXHVWLRQ LV HVWDEOLVKHG6XSUHPH&RXUWUXOHVRUVWDQGDUGV IXQGDPHQWDOLVRIFRXUVHKLVWRULFDOSUDFWLFHl%ODFNVWRQH UHIHUUHGWRVHOIGHIHQVHDVmWKHSULPDU\ODZRIQDWXUHlDQG ,QOLJKWRIWKLVZHPXVWGLVDJUHHZLWKWKHGLVWULFWFRXUWjV FODLPHGWKDWmLWLVQRWQHLWKHUFDQLWEHLQIDFWWDNHQDZD\E\ GHWHUPLQDWLRQWKDWWKHWULDOFRXUWDFWHGXQUHDVRQDEO\:HILQG WKHODZRIVRFLHW\l:LOOLDP%ODFNVWRQH&RPPHQWDULHV WKDWWKHVWDWHWULDOFRXUWjVUXOLQJWKDWWKHUHZDVQRHYLGHQFHRI $FFRUGLQJWRKLPWKHFRPPRQODZmKHOG>VHOIGHIHQVH@ MXVWLILHGVHOIGHIHQVHDQGLWVFRQVHTXHQWUHIXVDOWRLQVWUXFWWKH DQH[FXVHIRUEUHDFKHVRIWKHSHDFHQD\HYHQIRUKRPLFLGH MXU\ RQ VHOIGHIHQVH DQG LPSHUIHFW VHOIGHIHQVH GLG QRW LWVHOIl,GVHHDOVRLGDW ,WLVDZHOOHVWDEOLVKHG LQYROYHHLWKHUDQXQUHDVRQDEOHGHWHUPLQDWLRQRIWKHIDFWVRU UXOHLQIHGHUDOFULPLQDOWULDOVWKDWmDGHIHQGDQWLVHQWLWOHGWRDQ DQXQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHGIHGHUDOODZ LQVWUXFWLRQDVWRDQ\UHFRJQL]HGGHIHQVHIRUZKLFKWKHUHH[LVWV HYLGHQFHVXIILFLHQWIRUDUHDVRQDEOHMXU\WRILQGLQKLVIDYRUl 7D\ORUDOVRDSSHDUVWRFODLPWKDWWKHWULDOFRXUWUHIXVHGWR LQFOXGLQJ WKH GHIHQVH RI VHOIGHIHQVH  0DWKHZV Y 8QLWHG LQVWUXFWWKHMXU\RQVHOIGHIHQVHDQGLPSHUIHFWVHOIGHIHQVH  7D\ORUY:LWKURZ 1R 1R 7D\ORUY:LWKURZ 

6WDWHV  86     VHH DOVR 6WHYHQVRQ Y VWDQGDUGVIORZLQJIURPSUHFHGHQW6HH:LOOLDPV86DW 8QLWHG6WDWHV86(YHQLQ(JHOKRIIDFDVH :HEHOLHYHWKDWWKHUXOHWKDWDGHIHQGDQWLVXQGHUFHUWDLQ WDNLQJ D GHFLGHGO\ QDUURZ YLHZ RI ZKLFK ULJKWV DUH FLUFXPVWDQFHVHQWLWOHGWRDVHOIGHIHQVHLQVWUXFWLRQIROORZV mIXQGDPHQWDOlWKH&RXUWFRPPHQWHGWKDWmWKHULJKWWRKDYH LQHVFDSDEO\QRWRQO\IURPRXUOHJDOKHULWDJHEXWDOVRIURPWKH WKH MXU\ FRQVLGHU VHOIGHIHQVH HYLGHQFHl PD\ EH D &RXUWjVKROGLQJLQ7URPEHWWDWKDWDGHIHQGDQWKDVWKHULJKWWR IXQGDPHQWDO ULJKW   86 DW  6FDOLD s SOXUDOLW\ SUHVHQWDPHDQLQJIXOGHIHQVH6HH86DW7KLVLVDQ RSLQLRQ:HNQRZRIQRVWDWHWKDWHLWKHUFXUUHQWO\RULQWKH H[DPSOH RI D UDUD DYLV  D IXQGDPHQWDO FRQVWLWXWLRQDO UXOH SDVW KDV EDUUHG D FULPLQDO GHIHQGDQW IURP SXWWLQJ IRUZDUG GLFWDWHGE\SUHFHGHQWEXWmVRXQH[FHSWLRQDOWKDWLW>KDV@QHYHU VHOIGHIHQVHDVDGHIHQVHZKHQVXSSRUWHGE\WKHHYLGHQFH EHHQ GUDZQ LQWR TXHVWLRQ LQ D UHSRUWHG FDVHl DW OHDVW D 6XSUHPH&RXUWFDVH7\VRQY7ULJJ)GWK ,Q ILQGLQJ WKDW WKH ULJKW WR FODLP VHOIGHIHQVH LV D &LU IXQGDPHQWDOULJKWZHEUHDNQRQHZJURXQG2WKHU&RXUWVRI $SSHDOV KDYH DOUHDG\ UHDFKHG WKH VDPH FRQFOXVLRQ  ,Q D 7KHUXOHSURSRVHGLQWKHVHSDUDWHRSLQLRQRIRXUFROOHDJXH UHFHQW FDVH sXGJH (DVWHUEURRN KHOG WKDW m>Z@KHQ WKHUH LV sXGJH%RJJVnLHWKDWWKH6XSUHPH&RXUWPXVWH[SUHVVO\ HYLGHQWLDU\VXSSRUWIRUDGHIHQGDQWjVWKHRU\RIVHOIGHIHQVH DQGVSHFLILFDOO\KDYHVWDWHGDQHZUXOHLQRUGHUIRUXVWRDSSO\ IDLOXUH WR LQVWUXFW RQ VHOIGHIHQVH YLRODWHV D FULPLQDO LWXQGHUWKH$QWLWHUURULVP$FWnGRHVQRWUHFRJQL]HWKDWWKH GHIHQGDQWjV )LIWK DQG 6L[WK $PHQGPHQW ULJKWVl  6ORDQ Y 6XSUHPH &RXUW DFWV PRUH WKURXJK WKH VWDWHPHQW RI EURDG *UDPOH\:/DW

WK&LU0D\ SULQFLSOHVDQGVWDQGDUGVDVLQ:LOOLDPVDQG0DWKHZVWKDQ DQGsXGJH5LFKDUG$UQROGDOVRUHFHQWO\IRXQGWKDWDFULPLQDO WKURXJK VSHFLILF UXOHV DQG KROGLQJV RQ WKH YHU\ IDFWV LQ GHIHQGDQWmLVHQWLWOHGWRDVHOIGHIHQVHLQVWUXFWLRQLIWKHUHLV TXHVWLRQ0DQ\WKLQJVDUH REYLRXVDQGIORZIURPJHQHUDO HYLGHQFHWRVXSSRUWKLVWKHRU\l&OHPRQVY'HOR)G SULQFLSOHVDQGRXUKROGLQJLQWKLVFDVHLVRQHRIWKHP7KH WK&LU7KLV&RXUWKDVDOVRDOUHDG\KHOGDV HDUWKLVQRWIODWQRUGRHVWKHVXQUHYROYHDURXQGLWEXWZHGR KDYHRWKHU&RXUWVRI$SSHDOVWKDWLQFHUWDLQFLUFXPVWDQFHV QRWQHHGWREHWROGWKDWH[SUHVVO\E\WKH6XSUHPH&RXUWLQ UHIXVLQJWRLQVWUXFWDMXU\SURSHUO\RQVHOIGHIHQVHFDQVRWDLQW RUGHUIRUXVWRDSSO\LWLQDFDVH7KHULJLGUXOHsXGJH%RJJV WKH UHVXOWLQJ YHUGLFW DV WR EH DQ HUURU RI FRQVWLWXWLRQDO SURSRVHV ZRXOG RYHUUXOH WKH FRXUWjV VWDWHPHQW LQ :LOOLDPV GLPHQVLRQ6HHHJ'DYLVY6WUDFN)GG WKDWZHPXVWXVHRXUEHVWMXGJPHQWWRmH[WHQG>D@SULQFLSOHWR &LU%DUNHUY