Seymour v. Walker

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 %(9(5/< $ 6(<0285 ; 3HWLWLRQHU$SSHOODQW    1R Y  !  ',$1( :$/.(5  5HVSRQGHQW$SSHOOHH  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1RnsRKQ'+ROVFKXK'LVWULFWsXGJH 6XEPLWWHG0D\ 'HFLGHGDQG)LOHG$XJXVW %HIRUH0225(DQG*,/0$1&LUFXLWsXGJHV 0F.($*8( 'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ 21 %5,()  /DXUHQFH 5 6Q\GHU $66,67$17 $77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 7KH +RQRUDEOH 'DYLG : 0F.HDJXH 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ   6H\PRXUY:DONHU 1R 6(&7,21&OHYHODQG2KLRIRU$SSHOOHH%HYHUO\6H\PRXU &ROXPEXV2KLRSURVH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(11(/6210225(&LUFXLWsXGJH$IWHUDMXU\ WULDO%HYHUO\6H\PRXUZDVFRQYLFWHGRQ1RYHPEHU RIYROXQWDU\PDQVODXJKWHUDQGRIDILUHDUPVSHFLILFDWLRQIRU WKHVKRRWLQJGHDWKRIKHUH[KXVEDQG5LFKDUG5HDPV6KH EURXJKWDSURVHSHWLWLRQIRU KDEHDVFRUSXVSXUVXDQWWR 86& †  LQ WKH 86 'LVWULFW &RXUW IRU WKH 6RXWKHUQ 'LVWULFWRI2KLRUDLVLQJIRUW\VL[FODLPVRIHUURUSULQFLSDOO\ LQYROYLQJLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOLOOHJDOVHDUFKDQG LQWHUURJDWLRQWHFKQLTXHVSURVHFXWRULDOPLVFRQGXFWIDXOW\MXU\ LQVWUXFWLRQVDQGYDULRXVDOOHJHGGXHSURFHVVYLRODWLRQV7KH GLVWULFW FRXUW GHQLHG WKH SHWLWLRQ DQG RQ DSSHDO 6H\PRXU UDLVHVIRXUWHHQFODLPVRIHUURUZKLFKDWWHPSWWRLQFRUSRUDWH PRVWRIWKHIRUW\VL[FODLPVUDLVHGEHIRUHWKHGLVWULFWFRXUW )RUWKHUHDVRQVGLVFXVVHGEHORZZH $)),50WKHGLVWULFW FRXUWjVGHQLDORIWKHSHWLWLRQIRUKDEHDVFRUSXV ,%$&.*5281' %\ KHU RZQ DGPLVVLRQ SHWLWLRQHU %HYHUO\ 6H\PRXU VKRW DQG NLOOHG KHU H[KXVEDQG 5LFKDUG 5HDPV RQ $XJXVW  5HDPVKDGDUULYHGDW6H\PRXUjVDSDUWPHQWWKDWGD\ ZKLOH6H\PRXUZDVQRWDWKRPHVKRUWO\DIWHUKHUHFHLYHGD MXGJPHQW DZDUGLQJ KLP FXVWRG\ RI WKHLU GDXJKWHU 7HVVD 6H\PRXU WHVWLILHG DW WULDO WKDW ZKHQ VKH DUULYHG LQ WKH DSDUWPHQW 5HDPV ZKR KDG DOOHJHGO\ SK\VLFDOO\ DEXVHG 6H\PRXULQWKHSDVW DWWDFNHGKHUDQGWKDWVKHDWWHPSWHGWR IULJKWHQ KLP ZLWK KHU JXQ ZKLFK VKH JUDEEHG IURP WKH NLWFKHQWDEOHEXWWKDWWKHJXQILUHGZLWKRXWKHUUHDOL]LQJRU LQWHQGLQJ LW  6H\PRXUjV XQFOH WHVWLILHG KRZHYHU WKDW DOWKRXJKKHOLYHGLQDQDGMRLQLQJDSDUWPHQWVHSDUDWHGE\RQO\ RQH GRRU KH KHDUG WKH JXQVKRW EXW QR VFUHDPLQJ RU DUJXPHQWV$IWHUWKHVKRRWLQJ6H\PRXUFKHFNHGLQWRDPRWHO  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  KRZHYHU WKH GLVWULFW FRXUWjV MXGJPHQW GHQ\LQJ 6H\PRXUjV DQG DWWHPSWHG WR FRPPLW VXLFLGH E\ VZDOORZLQJ D ODUJH SHWLWLRQLV$)),50(' TXDQWLW\RIDVSLULQ6KHZDVODWHUKRVSLWDOL]HG 2Q6HSWHPEHU6H\PRXUZDVLQGLFWHGE\DJUDQG MXU\LQ3LFNDZD\&RXQW\2KLRIRURQHFRXQWRIPXUGHUZLWK DILUHDUPVSHFLILFDWLRQ$IWHUDMXU\WULDOVKHZDVFRQYLFWHG RIYROXQWDU\PDQVODXJKWHUDQGRIWKHILUHDUPVSHFLILFDWLRQ 6H\PRXUZDVVHQWHQFHGWRDSULVRQWHUPRIHLJKWWRWZHQW\ ILYH \HDUV RQ WKH PDQVODXJKWHU FKDUJH SOXV DQ DGGLWLRQDO WKUHH \HDUV RQ WKH ILUHDUP VSHFLILFDWLRQ WR EH VHUYHG FRQVHFXWLYHO\7KURXJKQHZFRXQVHO6H\PRXUDSSHDOHGKHU FRQYLFWLRQ WR WKH 2KLR &RXUW RI $SSHDOV IRU WKH )RXUWK $SSHOODWH'LVWULFWUDLVLQJWZHOYHFODLPVRIHUURU6H\PRXU DOVRVXSSOHPHQWHGKHUFRXQVHOj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jVFODLPV ILQGLQJVRPHRIWKHPWREHSURFHGXUDOO\ GHIDXOWHGDQGWKH UHPDLQGHUWREHZLWKRXWPHULW6H\PRXUWLPHO\DSSHDOHGDQG D&HUWLILFDWHRI$SSHDODELOLW\ZDVJUDQWHGDVWRDOOLVVXHV  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  ,,$1$/<6,6 GLVWULFW FRXUW IROORZLQJ /LQGK Y 0XUSK\  86    KROGLQJWKDW$('3$LVDSSOLFDEOHRQO\WRFDVHVILOHG $6WDQGDUGRI5HYLHZ DIWHU WKH DFWjV HIIHFWLYH GDWH RI $SULO    FRUUHFWO\ DSSOLHG $('3$ WR 6H\PRXUjV KDEHDV SHWLWLRQ ZKLFK ZDV 7KLVFRXUWUHYLHZVWKHGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGH ILOHGRQ$XJXVW6LQFHWKLVFKDQJHLQWKHODZmQHLWKHU QRYRDQGLWVILQGLQJVRIIDFWIRUFOHDUHUURU6HH+DUULVY PDGHFULPLQDODWKHUHWRIRUHLQQRFHQWDFWQRUDJJUDYDWHGD 6WRYDOO  )G   WK &LU    %HFDXVH FULPH SUHYLRXVO\ FRPPLWWHG QRU SURYLGHG D JUHDWHU 6H\PRXUjVKDEHDVSHWLWLRQZDVILOHGDIWHUWKH$QWLWHUURULVP SXQLVKPHQWQRUFKDQJHGWKHSURRIQHFHVVDU\WRFRQYLFWlLWV DQG(IIHFWLYH'HDWK3HQDOW\$FW $('3$ EHFDPHHIIHFWLYH DSSOLFDWLRQWR6H\PRXUGRHVQRWYLRODWHWKH([ 3RVW)DFWR RQ $SULO   WKH SURYLVLRQV RI WKDW DFW DSSO\ WR &ODXVH'REEHUWY)ORULGD86   6H\PRXUjV FDVH DQG SUHVFULEH WKH DSSURSULDWH VWDQGDUG RI UHYLHZ  6HH /LQGK Y 0XUSK\  86     s  &ODLP 7ZHOYH  'XH 3URFHVV %DVHG RQ 3URFHGXUDO +DUULV)GDW8QGHU$('3$DZULWRIKDEHDV 'HIDXOW FRUSXV VKDOO QRW LVVXH XQOHVV WKH VWDWH FRXUW DGMXGLFDWLRQ mUHVXOWHGLQDGHFLVLRQWKDWZDVFRQWUDU\WRRULQYROYHGDQ ,QKHUWZHOIWKFODLP6H\PRXUDUJXHVWKDWVKHZDVGHQLHG XQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG)HGHUDOODZ GXHSURFHVVE\WKHGLVWULFWFRXUWjVIDLOXUHWRUXOHRQDOORIKHU DV GHWHUPLQHG E\ WKH 6XSUHPH &RXUWl  86& FODLPV GXH WR SURFHGXUDO GHIDXOW  :H FRQFOXGH WKDW WKH † G  RUZDVEDVHGRQmDQXQUHDVRQDEOHGHWHUPLQDWLRQ GLVWULFW FRXUWjV DSSOLFDWLRQ RI WKH SURFHGXUDO GHIDXOW UXOHV RI WKH IDFWV LQ OLJKW RI WKH HYLGHQFH SUHVHQWHG LQ WKH 6WDWH DUWLFXODWHGE\WKH6XSUHPH&RXUWGLGQRWYLRODWH6H\PRXUjV FRXUWSURFHHGLQJl86&† G   GXHSURFHVVULJKWV 1RWLQJWKDW$('3$mSODFHVDQHZFRQVWUDLQWRQWKHSRZHU . &ODLPV7KLUWHHQDQG)RXUWHHQ([3RVW)DFWRDQG RIDIHGHUDOKDEHDVFRXUWWRJUDQWDVWDWHSULVRQHUjVDSSOLFDWLRQ (TXDO3URWHFWLRQ&KDOOHQJHVWR3DUROH3URFHGXUHV IRUDZULWRIKDEHDVFRUSXVZLWKUHVSHFWWRFODLPVDGMXGLFDWHG RQWKHPHULWVLQVWDWHFRXUWlWKH6XSUHPH&RXUWLOOXPLQDWHG ,QKHUILQDOWZRFODLPV6H\PRXUFKDOOHQJHVWKHSURFHGXUHV WKHPHDQLQJRI† G  LQ:LOOLDPVY7D\ORU86 E\ZKLFKSDUROHGHFLVLRQVDUHPDGHE\WKH2KLR'HSDUWPHQW 6&W  ,GDW6&WDW$VWDWH RI&RUUHFWLRQVDVYLRODWLYHRIWKH(TXDO3URWHFWLRQ DQG([ FRXUWGHFLVLRQLVmFRQWUDU\WRl6XSUHPH&RXUWSUHFHGHQWmLI 3RVW )DFWR &ODXVHV RI WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ WKHVWDWHFRXUWDUULYHVDWDFRQFOXVLRQRSSRVLWHWRWKDWUHDFKHG $OWKRXJK 6H\PRXU UDLVHG WKHVH FODLPV LQ KHU VWDWH E\>WKH6XSUHPH@&RXUWRQDTXHVWLRQRIODZlRUmLIWKHVWDWH SRVWFRQYLFWLRQSURFHHGLQJVKHGLGQRWUDLVHWKHPEHIRUHWKH FRXUW FRQIURQWV IDFWV WKDW DUH PDWHULDOO\ LQGLVWLQJXLVKDEOH GLVWULFWFRXUWLQWKHSUHVHQWKDEHDVSHWLWLRQDQGQRFHUWLILFDWH IURPDUHOHYDQW6XSUHPH&RXUWSUHFHGHQWlDQGDUULYHVDWD RIDSSHDODELOLW\ZDVLVVXHGZLWKUHVSHFWWRWKHP7KHUHIRUH GLIIHUHQWUHVXOW,GDW6&WDW$VWDWHFRXUW ZHPD\QRWFRQVLGHUWKHP6HH86&† F 8QLWHG GHFLVLRQ LQYROYHV DQ XQUHDVRQDEOH DSSOLFDWLRQ RI 6XSUHPH 6WDWHVY:DWURED)G WK&LU FHUWGHQLHG &RXUW SUHFHGHQW mLI WKH VWDWH FRXUW LGHQWLILHV WKH FRUUHFW 86   JRYHUQLQJOHJDOUXOHIURP>WKH6XSUHPH@&RXUWjVFDVHVEXW XQUHDVRQDEO\DSSOLHVLWWRWKHIDFWVRIWKHSDUWLFXODUFDVHl ,,,&21&/86,21 RU LI WKH VWDWH FRXUW HLWKHU XQUHDVRQDEO\ H[WHQGV RU XQUHDVRQDEO\ UHIXVHV WR H[WHQG D OHJDO SULQFLSOH IURP 6H\PRXUjVPRWLRQWRVXSSOHPHQWWKHUHFRUGZLWKKHUEULHI 6XSUHPH&RXUWSUHFHGHQWWRDQHZFRQWH[W,GDW6 DQG WKH VWDWHjV EULHI IURP WKH VWDWHFRXUW SRVWFRQYLFWLRQ SURFHHGLQJV LV *5$17('  )RU WKH IRUHJRLQJ UHDVRQV  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  KRZHYHUYLRODWHVWKHGHIHQGDQWjV)LIWK$PHQGPHQWULJKWV &WDW7KHUHDVRQDEOHQHVVRIWKHVWDWHFRXUWjVRSLQLRQ 6HH &RPEV Y &R\OH  )G   WK &LU   LVMXGJHGE\DQREMHFWLYHUDWKHUWKDQVXEMHFWLYHVWDQGDUG6HH 7KHUHIRUH WKH UHOHYDQW TXHVWLRQ LV ZKHWKHU WKH SURVHFXWRU LGDW6&WDW+DUULV)GDW XVHG 6H\PRXUjV VLOHQFH IRU LPSHDFKPHQW SXUSRVHV RU DV VXEVWDQWLYHHYLGHQFHRIJXLOW % &ODLP 2QH  3URFHGXUDO 'HIDXOW DQG ,QHIIHFWLYH $VVLVWDQFHRI$SSHOODWH&RXQVHO :HKROGWKDWWKHSURVHFXWRUjVVWDWHPHQWGRHVQRWIDOOZLWKLQ WKH VFRSH RI WKH &RPEV KROGLQJ  $OWKRXJK WKH SURVHFXWRU :KHQDKDEHDVSHWLWLRQHUIDLOVWRREWDLQFRQVLGHUDWLRQRID PDGH WKLV VWDWHPHQW LQ KLV FORVLQJ DUJXPHQW ZKLOH FODLPE\DVWDWHFRXUWHLWKHUGXHWRWKHSHWLWLRQHUjVIDLOXUHWR FRPPHQWLQJRQDOOWKHHYLGHQFHDJDLQVW6H\PRXUUDWKHUWKDQ UDLVH WKDW FODLP EHIRUH WKH VWDWH FRXUWV ZKLOH VWDWHFRXUW GXULQJKLVFURVVH[DPLQDWLRQRI6H\PRXU ZKHUHDQLQWHQWWR UHPHGLHVDUHVWLOODYDLODEOHRUGXHWRDVWDWHSURFHGXUDOUXOH LPSHDFKZRXOGKDYHEHHQPRUHHYLGHQW ZHEHOLHYHWKDWWKH WKDWSUHYHQWVWKHVWDWHFRXUWVIURPUHDFKLQJWKHPHULWVRIWKH RYHUDOO FRQWH[W RI WKH DUJXPHQW GHPRQVWUDWHV WKDW WKH SHWLWLRQHUjVFODLPWKDW FODLPLVSURFHGXUDOO\GHIDXOWHGDQG FRPPHQWVRQ6H\PRXUj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jVFDVH6HH   'HVSLWH WKH SURVHFXWRUjV GHVFULSWLRQ RI 6H\PRXUjV 6\NHV86DW VLOHQFH DV mDQ LQGLFDWLRQ RI JXLOWl WKH PRVW ORJLFDO XQGHUVWDQGLQJ RI KLV UHPDUNV LV DV DQ DWWHPSW WR XVH 7KHGLVWULFWFRXUWIRXQGWKDWVHYHUDORI6H\PRXUjVFODLPV 6H\PRXUjVSUHDUUHVWVLOHQFHWRXQGHUPLQHKHUWKHRU\RIVHOI ZHUHSURFHGXUDOO\GHIDXOWHGGXHWRKHUIDLOXUHWRUDLVHWKHPLQ GHIHQVH(VSHFLDOO\JLYHQWKHGHIHUHQWLDOVWDQGDUGRIUHYLHZ WKH2KLRVWDWHFRXUWV6H\PRXUFODLPVWKDWWKLVILQGLQJZDV WKDWZHPXVWDSSO\XQGHU† G  ZHFDQQRWVD\WKDWWKH LQFRUUHFW6KHDUJXHVWKDWWRWKHH[WHQWWKDWKHUFODLPVZHUH 2KLR &RXUW RI $SSHDOVjV GHFLVLRQ WR UHMHFW WKLV FODLP LV SXUSRUWHGO\GHIDXOWHGGXHWRKHUIDLOXUHWRUDLVHWKHPRQGLUHFW FRQWUDU\ WR RU DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ DSSHDOVKHKDVUHSHDWHGO\FODLPHGLQHIIHFWLYHDVVLVWDQFHRI HVWDEOLVKHGIHGHUDOODZDVDUWLFXODWHGE\sHQNLQV DSSHOODWH FRXQVHO ZKLFK FRQVWLWXWHV mFDXVHl WR H[FXVH KHU SURFHGXUDO GHIDXOW  6SHFLILFDOO\ 6H\PRXU DUJXHV WKDW VKH &XPXODWLYH(UURU UHFHLYHGLQHIIHFWLYHDVVLVWDQFHEHFDXVHKHUDSSHOODWHFRXQVHO ZDVIRUFHGWROLPLWKLVEULHIWRWKLUW\ILYHSDJHVDQGWKHUHIRUH *LYHQWKHIRUHJRLQJ6H\PRXULVQRWHQWLWOHGWRUHOLHIEDVHG KDGWRHOLPLQDWHDQXPEHURIFODLPVIURPWKHDSSHDOEHFDXVH RQDWKHRU\RIFXPXODWLYHHUURU KHU DSSHOODWH FRXQVHOj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jV SURFHGXUDOGHIDXOWLVVXHVZKHWKHUWKHLQHIIHFWLYHDVVLVWDQFH GXH SURFHVV ULJKWV ZHUH YLRODWHG WKLV FRXUW ORRNV DW WKH RI6H\PRXUjVDSSHOODWHFRXQVHOFDQVHUYHDVFDXVHWRH[FXVH WRWDOLW\RIWKHFLUFXPVWDQFHVLQFOXGLQJ 6H\PRXUj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jVFRPPHQW7KHSURVHFXWRUGLG QRPRUHWKDQFRPPHQWRQWKHGHIHQVHjVHYLGHQFHZKLFKKH )LUVW WKH GHIHQGDQW PXVW VKRZ WKDW FRXQVHOjV LVSHUPLWWHGWRGR1RUZDVWKLVUHODWLYHO\LVRODWHGFRPPHQW SHUIRUPDQFHZDVGHILFLHQW7KLVUHTXLUHVVKRZLQJWKDW RQ WKH GHIHQVHjV FDVH H[WHQVLYH PLVOHDGLQJ RU RWKHUZLVH FRXQVHO PDGH HUURUV VR VHULRXV WKDW FRXQVHO ZDV QRW IXQGDPHQWDOO\XQIDLU6H\PRXUWKHUHIRUHFDQQRWVKRZWKDW IXQFWLRQLQJDVWKHmFRXQVHOlJXDUDQWHHGWKHGHIHQGDQWE\ WKHVWDWHFRXUWjVDFWLRQVZHUHFRQWUDU\WRRUDQXQUHDVRQDEOH WKH6L[WK$PHQGPHQW6HFRQGWKHGHIHQGDQWPXVWVKRZ DSSOLFDWLRQRI6XSUHPH&RXUWSUHFHGHQW WKDW WKH GHILFLHQW SHUIRUPDQFH SUHMXGLFHG WKH GHIHQVH 7KLV UHTXLUHV VKRZLQJ WKDW FRXQVHOjV HUURUV ZHUH VR 6H\PRXUDOVRREMHFWVWRWKHSURVHFXWRUjVFRPPHQWVRQKHU VHULRXVDVWRGHSULYHWKHGHIHQGDQWRIDIDLUWULDODWULDO SUHDUUHVW VLOHQFH PDGH GXULQJ FORVLQJ DUJXPHQWV  ,Q ZKRVHUHVXOWLVUHOLDEOH SDUWLFXODUWKHSURVHFXWRUVWDWHG ,GDW6H\PRXUKDVQRWPDGHWKLVVKRZLQJ7KHSDJH ,VXEPLWWR\RXLIWKHGHIHQGDQWKDGJRQHWRWKH6KHULIIjV OLPLWDWLRQVLPSRVHGE\WKHVWDWHRQDSSHOODWHEULHIVWKHVWDWHjV 2IILFHRUWRWKH$VKYLOOH3ROLFH'HSDUWPHQWLPPHGLDWHO\ GHQLDO RI 6H\PRXUjV PRWLRQ WR FRUUHFW WKH UHFRUG DQG DIWHUVKRRWLQJ5LFKDUG5HDPVLWZRXOGEHLQKHUSROLFH 6H\PRXUjV WHPSRUDU\ LQDFFHVVLELOLW\ GR QRW DPRXQW WR UHSRUW/RRNKHUHSURVHFXWRUVKHVDLGVKHGLGLWLQµVHOI FRQVWLWXWLRQDOO\GHILFLHQWSHUIRUPDQFHE\6H\PRXUjVFRXQVHO GHIHQVHjLQKHUSROLFHUHSRUWLIVKHZHQWVWUDLJKWWRWKH 0RUHRYHUWKHDOOHJHGO\LQHIIHFWLYHDVVLVWDQFHRI6H\PRXUjV SROLFHGHSDUWPHQWDQGWROGWKHPZKDWKDSSHQHGWKDW, DSSHOODWH FRXQVHO FDQQRW EH FRQVLGHUHG WR EH FDXVH IRU GLGLWLQVHOIGHIHQVHEXW\RXGRQjWVHHDQ\WKLQJOLNHWKDW 6H\PRXUjV SURFHGXUDO GHIDXOW EHFDXVH WKDW FODLP RI 7KH\ZLOODUJXHIOHHLQJIURPWKHVFHQHLVQRWHYLGHQFHRI LQHIIHFWLYHQHVVZDVQRWSURSHUO\SUHVHQWHGWRDQGUXOHGRQE\ JXLOW WKH 2KLR FRXUWV  7KH LQHIIHFWLYHDVVLVWDQFHRIDSSHOODWH ,VXEPLWWKDWLWLVDQLQGLFDWLRQRIJXLOW FRXQVHOFODLPLVWKHUHIRUHLWVHOISURFHGXUDOO\GHIDXOWHGDQG VLQFH6H\PRXUKDVQRWVKRZQFDXVHDQGSUHMXGLFH IRUWKDW s$DW 7URI&ORVLQJ$UJXPHQW 7KH6XSUHPH&RXUW GHIDXOW FDQQRW VHUYH DV FDXVH IRU 6H\PRXUjV SURFHGXUDO KDVKHOGWKDWDGHIHQGDQWjVSUHDUUHVWVLOHQFHPD\EHXVHGIRU GHIDXOWRQWKHXQGHUO\LQJFRQVWLWXWLRQDOFODLPV6HH(GZDUGV LPSHDFKPHQWSXUSRVHV6HHsHQNLQVY$QGHUVRQ86 Y&DUSHQWHU866&W     7KLVFLUFXLWKDVUHFHQWO\KHOGWKDWWKH XVH RI SUHDUUHVW VLOHQFH DV VXEVWDQWLYH HYLGHQFH RI JXLOW  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  DERYH ZH FRQFOXGH WKDW WKH WULDO FRXUW GLG QRW YLRODWH %HFDXVH WKH SUREOHPV GLVFXVVHG E\ 6H\PRXU DUH QRW 6H\PRXUjVGXHSURFHVVULJKWVWKURXJKFXPXODWLYHHUURU DFWXDOO\ mHUURUVl DWWULEXWDEOH WR KHU FRXQVHO KRZHYHU 6H\PRXUjVDUJXPHQWLVSHUKDSVEHWWHUXQGHUVWRRGDVDFODLP +&ODLP(LJKW3URVHFXWRULDO0LVFRQGXFW WKDWWKHWKUHHIDFWRUVVKHHQXPHUDWHGZHUHmREMHFWLYHIDFWRU>V@ H[WHUQDO WR WKH GHIHQVH >WKDW@ LPSHGHG FRXQVHOjV HIIRUWV WR 6H\PRXU SUHVHQWHG VHYHUDO FODLPV RI SURVHFXWRULDO FRPSO\ZLWKWKH6WDWHjVSURFHGXUDOUXOHlZKLFKZRXOGDOVREH PLVFRQGXFW WR WKH GLVWULFW FRXUW IRXU RI ZKLFK WKH GLVWULFW FDSDEOHRIH[FXVLQJSURFHGXUDOGHIDXOW&DUULHU86DW FRXUW FRUUHFWO\ IRXQG WR EH SURFHGXUDOO\ EDUUHG GXH WR   7KLV IRUPXODWLRQ ZRXOG QRW FKDQJH RXU DQDO\VLV RI 6H\PRXUjV IDLOXUH WR SUHVHQW WKHP WR WKH 2KLR &RXUW RI 6H\PRXUjV FODLP  )LUVW ZLWK UHVSHFW WR WKH SDJH OLPLW RQ $SSHDOV:HDOVRFRQFOXGHWKDWDILIWKFODLPZDVQRWUDLVHG DSSHOODWHEULHIVDVWKHGLVWULFWFRXUWH[SODLQHG6H\PRXUZDV EHIRUH WKH 2KLR &RXUW RI $SSHDOV DQG WKHUHIRUH ZDV DOORZHGWRILOHDSURVHEULHILQWKH2KLR&RXUWRI$SSHDOVLQ GHIDXOWHG:HFRQVLGHUWKHUHPDLQGHURI6H\PRXUjVFODLPV DGGLWLRQWRKHUFRXQVHOjVEULHIDQGDOOILIWHHQRIKHUSURVH EHORZ FODLPVZHUHFRQVLGHUHGE\WKDWFRXUW  0RUHRYHUWKHSDJH OLPLWmPHUHO\OLPLWHGWKHPDQQHULQZKLFK>6H\PRXU@FRXOG  &ORVLQJ$UJXPHQW&RPPHQWVRQsXOLH%XVNLUNjV SUHVHQW>KHU@DUJXPHQWVLWGLGQRWZKROO\SUHYHQW>KHU@IURP )DLOXUH WR 7HVWLI\ DQG RQ 6H\PRXUjV 3UHDUUHVW SUHVHQWLQJWKHPl:HHNVY$QJHORQH)G WK 6LOHQFH &LU DIIjG866&W  FI+LOOY 1RUULV  )G   WK &LU    1RU KDV 6H\PRXUDUJXHVWKDWWKHSURVHFXWRUFRPPLWWHGPLVFRQGXFW 6H\PRXUPDGHDQ\VKRZLQJWKDWWKHSDJHOLPLWVKRXOGQRW E\ FRPPHQWLQJ RQ WKH IDLOXUH RI 6H\PRXUjV VLVWHU sXOLH KDYH EHHQ HQIRUFHG LQ KHU FDVH LQ SDUWLFXODU WKXV LQ WKH %XVNLUN WR WHVWLI\ LQ KHU GHIHQVH DQG E\ FRPPHQWLQJ RQ DEVHQFHRIDQ\VXFKSDUWLFXODUL]HGVKRZLQJLWZRXOGDSSHDU 6H\PRXUjVSUHDUUHVWVLOHQFH WKDW6H\PRXUjVDUJXPHQWLVWKDWWKHH[LVWHQFHRIDSDJHOLPLW $VWRWKHSURVHFXWRUjVFRPPHQWVRQsXOLH%XVNLUNWKHVWDWH RQVWDWHFRXUWDSSHOODWHEULHIVFRXOGDOZD\VEHVXIILFLHQWFDXVH DSSHDOVFRXUWFRQFOXGHGWKDWWKH\ZHUHQRWLPSURSHUXQGHU WRH[FXVHDSURFHGXUDOGHIDXOW6XFKDUHVXOWZRXOGFOHDUO\EH 2KLRODZVHH6H\PRXU:/DW DQGWKLV H[WUHPHDQGRXWRIOLQHZLWKWKH6XSUHPH&RXUWjVDWWLWXGHRI FRXUWPXVWGHIHUWRWKDWFRQFOXVLRQ,QRUGHUWRVKRZWKDWVKH WROHUDQFHWRZDUGVXFKOLPLWDWLRQVDQGLQVLVWHQFHWKDWFRXQVHO LVHQWLWOHGWRKDEHDVFRUSXVUHOLHI6H\PRXUPXVWVKRZWKDW QHHGQRWUDLVHHYHU\FRQFHLYDEOHFRORUDEOHFODLPRQDSSHDOLQ WKHSURVHFXWRUjVFRQGXFWZDVmVRIXQGDPHQWDOO\XQIDLUDVWR RUGHUWRIXOILOOKLVGXW\WRKLVFOLHQW6HHJHQHUDOO\sRQHVY GHQ\>KHU@GXHSURFHVVl.LQFDGHY6SDUNPDQ)G %DUQHV86   6HFRQG 6H\PRXU KDV QRW VKRZQ KRZ WKH VWDWH FRXUWjV  UHIXVDOWRJUDQWKHUPRWLRQWRFRUUHFWWKHUHFRUGFRQVWLWXWHV 7KRVH LQVWDQFHV RI DOOHJHG PLVFRQGXFW ZHUH  IDLOXUH WR SUHVHUYH FDXVH IRU DQ\ SURFHGXUDO GHIDXOW  $OWKRXJK KHU FRXQVHO 6H\PRXUjV VKLUW DV HYLGHQFH  IDLOXUH WR SUHVHUYH RWKHU HYLGHQFH DUJXHGLQKLVEULHIEHIRUHWKH2KLR&RXUWRI$SSHDOVWKDWWKHUH  IDLOXUH WR SKRWRJUDSK 6H\PRXUjV EUXLVHV LPPHGLDWHO\ DIWHU WKH VKRRWLQJ  FKDUJLQJ 6H\PRXU ZLWK WKH ILUHDUP VSHFLILFDWLRQ LQ YLRODWLRQ ZHUH PDWHULDO HUURUV LQ WKH WUDQVFULSW WKDW SUHMXGLFHG RI KHU 6HFRQG $PHQGPHQW ULJKWV 6H\PRXUjV DSSHDO KH GLG QRW SRLQW WR D VLQJOH VXFK HUURU 7KLV YDJXH DQG FRQFOXVRU\ DVVHUWLRQ FDQQRW VXIILFH WR  6H\PRXU FODLPHG IRU WKH ILUVW WLPH LQ KHU 0RWLRQ IRU GHPRQVWUDWH FDXVH IRU 6H\PRXUjV SURFHGXUDO GHIDXOW 5HFRQVLGHUDWLRQ EHIRUH WKH 2KLR 6XSUHPH &RXUW WKDW WKH SURVHFXWRU 6LPLODUO\ 6H\PRXU KDV QRW VKRZQ WKDW KHU LQDELOLW\ WR LPSURSHUO\ FRQFHDOHG IURP WKH MXU\ WKH IDFW WKDW KH ZDV SUHVHQW GXULQJ WKH FRPPXQLFDWHZLWKKHUFRXQVHOIRUDSHULRGRIVHYHUDOGD\V VKHULIIjV LQWHUURJDWLRQ RI 6H\PRXU  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  GXULQJWKHSUHSDUDWLRQRIKHUDSSHOODWHEULHIFRQVWLWXWHVFDXVH 5(9 &2'( ††   %DOGZLQ   6WDWH Y IRUKHUSURFHGXUDOGHIDXOW6KHKDVQRWGHPRQVWUDWHGWKDWVKH 7\OHU1(G 2KLR FHUWGHQLHG86 ZDVXQDEOHWRUDLVHFHUWDLQFODLPVDVDUHVXOWRIWKLVODFNRI    VHH JHQHUDOO\ 6FKPXFN  86 DW   FI FRPPXQLFDWLRQIRUH[DPSOHnHVSHFLDOO\LQOLJKWRIWKHIDFW 6FKDGY$UL]RQD86   QRWLQJWKDW WKDW VKH ZDV SHUPLWWHG WR ILOH KHU RZQ SUR VH EULHI UDLVLQJ IHGHUDOFRXUWVPD\QRWVHFRQGJXHVVDVWDWHFRXUWjVGHFLVLRQ ILIWHHQFODLPV0RUHRYHUPRUHWKDQD\HDUDSSHDUVWRKDYH DV WR ZKDW FRQVWLWXWHV DQ HOHPHQW RI D FULPH XQGHU D VWDWH HODSVHG EHWZHHQ WKH DSSRLQWPHQW RI 6H\PRXUjV DSSHOODWH VWDWXWH 7KHYROXQWDU\PDQVODXJKWHULQVWUXFWLRQWKHUHIRUHGLG FRXQVHODQGWKHILOLQJRIKHUDSSHOODWHEULHILQWKH2KLR&RXUW QRWYLRODWH6H\PRXUj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mLQFRUUHFWO\DSSOLHGHYLGHQFHDQGIDFWVSURYLQJ 6H\PRXU:/DW 6LQFHWKLVLVVXHKDVQR VHOIGHIHQVHUDLVHGDWWULDODQGGLGQRWLPSDUWLDOO\UHYLHZWKH DSSDUHQW IHGHUDO FRQVWLWXWLRQDO LPSOLFDWLRQV ZH FDQQRW IDFWVDQGWHVWLPRQ\lDQGWKDWWKHGLVWULFWFRXUWGLGQRWmPDNH TXHVWLRQWKHVWDWHFRXUWjVGHFLVLRQ DIXOOUHYLHZRI3HWLWLRQHUjVFODLPVE\IDLOLQJWRH[DPLQHDOO WKHGRFXPHQWDWLRQVXSSRUWLQJDQGSURYLQJKHUFODLPVl3HWjU %XUGHQRI3URRI %UDWD6H\PRXUDSSHDUVWRVXJJHVWWKDWVKHZDVHQWLWOHGWR DGHQRYRUHYLHZE\WKHGLVWULFWFRXUWRIWKHHYLGHQFHDGGXFHG 6H\PRXU FODLPV WKDW WKH WULDO FRXUWjV LQVWUXFWLRQ DWWULDO XQFRQVWLWXWLRQDOO\ VKLIWHG WR KHU WKH EXUGHQ RI SURYLQJ WKH PHQVUHDRIYROXQWDU\PDQVODXJKWHUE\UHTXLULQJKHUWRSURYH 86&† H  KRZHYHUSURYLGHVWKDWVWDWHFRXUW E\DSUHSRQGHUDQFHRIWKHHYLGHQFHWKDWVKHZDVXQGHUWKH IDFWXDOILQGLQJVDUHHQWLWOHGWRDSUHVXPSWLRQRIFRUUHFWQHVV LQIOXHQFH RI UDJH RU SDVVLRQ  ([DPLQLQJ WKH UHOHYDQW RQKDEHDVUHYLHZ7KHGLVWULFWFRXUWTXRWHGWKHVWDWHDSSHDOV 6XSUHPH&RXUWSUHFHGHQWWKLVFRXUWKDVSUHYLRXVO\XSKHOG FRXUWjVIDFWXDOILQGLQJVLQLWVRSLQLRQWKHUHE\DFFRUGLQJWKH DJDLQVWDGXHSURFHVVFKDOOHQJH2KLRjVVFKHPHRIUHTXLULQJ UHTXLUHGUHVSHFWWRWKRVHILQGLQJV$OWKRXJKWKHSHWLWLRQHU WKH GHIHQGDQW WR SURYH WKLV PLWLJDWLQJ FLUFXPVWDQFH  6HH PD\ UHEXW WKH SUHVXPSWLRQ RI FRUUHFWQHVV E\ mFOHDU DQG 5KRGHVY%ULJDQR)G WK&LU FHUW FRQYLQFLQJHYLGHQFHl86&† H  6H\PRXUKDV GHQLHG  86     7KHUHIRUH ZH FDQQRW QRZ IDLOHG WR GR VR  +HU DUJXPHQWV VKHG VRPH GRXEW RQ WKH KROGWKDWWKHLQVWUXFWLRQZDVFRQWUDU\WRRUDQXQUHDVRQDEOH FUHGLELOLW\ RI FHUWDLQ ZLWQHVVHV DQG JLYH LQWHUSUHWDWLRQV RI DSSOLFDWLRQRI6XSUHPH&RXUWSUHFHGHQW FRQIOLFWLQJHYLGHQFHWKDWGLIIHUIURPWKHLQWHUSUHWDWLRQVRIWKH VWDWHFRXUW+RZHYHULQOLJKWRIWKHGHIHUHQFHWREHDFFRUGHG &XPXODWLYH(UURU WR VWDWHFRXUW IDFWILQGLQJ XQGHU †  H  DV ZHOO DV WKH WUDGLWLRQDO GHIHUHQFH DFFRUGHG WR WKH MXU\jV UHVROXWLRQ RI 6H\PRXUDOVRFODLPVWKDWWKHFXPXODWLYHHUURURIWKHWULDO GLVSXWHG IDFWXDO LVVXHV 6H\PRXUjV DUJXPHQWV DUH QRW FRXUWjV LQVWUXFWLRQV DPRXQWHG WR D YLRODWLRQ RI KHU GXH SURFHVVULJKWV*LYHQRXUGLVSRVLWLRQRIWKHFODLPVGLVFXVVHG  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  'XW\WR5HWUHDW VXIILFLHQWWRGHPRQVWUDWHWKHLQFRUUHFWQHVVRIWKHVWDWHFRXUWjV ILQGLQJVE\FOHDUDQGFRQYLQFLQJHYLGHQFH)XUWKHUPRUHLW 6H\PRXU FODLPV WKDW WKH WULDO FRXUW IDLOHG SURSHUO\ WR ERUGHUVRQWKHDEVXUGWRVXJJHVWWKDWWKHGLVWULFWFRXUWGLGQRW LQVWUXFWWKHMXU\WKDWWKHUHLVQRGXW\WRUHWUHDWIURPRQHjVRZQ IXOO\FRQVLGHUDOOWKHHYLGHQFHEHIRUHLWLQOLJKWRIWKHGLVWULFW KRPHXQGHUWKH2KLRODZRIVHOIGHIHQVH$UHYLHZRIWKH FRXUWjVFDUHIXOO\UHDVRQHGDQGVXSSRUWHGRSLQLRQ MXU\LQVWUXFWLRQVLQGLFDWHVKRZHYHUWKDWWKHWULDOMXGJHGLGLQ IDFW WHOO WKH MXU\ m7KHUH LV QR GXW\ WR UHWUHDW IURP RQHjV '&ODLP)RXU'XH3URFHVV KRPHl  s$ DW  7U   0RUHRYHU WKH 2KLR &RXUW RI $SSHDOVIRXQGWKDWWKLVLQVWUXFWLRQDFFXUDWHO\UHIOHFWHG2KLR 1H[W 6H\PRXU FRPSODLQV WKDW VKH ZDV GHSULYHG RI GXH ODZVHH6H\PRXU:/DW DQGLWLVQRW SURFHVV E\ WKH JRYHUQPHQWjV SUHVHQWDWLRQ RI D mVXUSULVHl IRUWKLVFRXUWWRTXHVWLRQWKHVWDWHFRXUWjVLQWHUSUHWDWLRQRILWV UHEXWWDOZLWQHVVDQGWKHWULDOFRXUWjVUHIXVDOWRDOORZKHUWR RZQODZ6HH$OOHQY0RUULV)G WK&LU FDOODZLWQHVVWRUHEXWWKDWZLWQHVVjVWHVWLPRQ\7KHGLVWULFW  FHUWGHQLHG86   FRXUWIRXQGWKDWWKHWULDOFRXUWGLGQRWHUULQDOORZLQJWKHVWDWH WRFDOOWZRZLWQHVVHVWRUHEXW6H\PRXUjVWHVWLPRQ\ /HVVHU,QFOXGHG2IIHQVH m>(@UURUVLQWKHDSSOLFDWLRQRIVWDWHODZHVSHFLDOO\UXOLQJV 6H\PRXUFODLPVWKDWWKHWULDOFRXUWHUUHGLQLQVWUXFWLQJWKH UHJDUGLQJWKHDGPLVVLRQRUH[FOXVLRQRIHYLGHQFHDUHXVXDOO\ MXU\RQWKHOHVVHULQFOXGHGRIIHQVHRIYROXQWDU\PDQVODXJKWHU QRWWREHTXHVWLRQHGLQDIHGHUDOKDEHDVFRUSXVSURFHHGLQJl RYHU KHU REMHFWLRQ DQG GHVSLWH KHU UHTXHVW WKDW WKH MXU\ EH &RRSHU Y 6RZGHUV  )G   WK &LU   LQVWUXFWHGRQO\RQPXUGHU7KH2KLR&RXUWRI$SSHDOVKHOG *HQHUDOO\VWDWHFRXUWHYLGHQWLDU\UXOLQJVFDQQRWULVHWRWKH WKDWWKHLQVWUXFWLRQZDVSURSHUDQGLQGHHGUHTXLUHGXQGHU OHYHO RI GXH SURFHVV YLRODWLRQV XQOHVV WKH\ mRIIHQG>@ VRPH 2KLRODZVHH6H\PRXU:/DW DQGWKLV SULQFLSOHRIMXVWLFHVRURRWHGLQWKHWUDGLWLRQVDQGFRQVFLHQFH FRXUWFDQQRWTXHVWLRQWKDWKROGLQJVHH$OOHQ)GDW RIRXUSHRSOHDVWREHUDQNHGDVIXQGDPHQWDOl0RQWDQDY (JHOKRII86   TXRWLQJ3DWWHUVRQY1HZ $GHIHQGDQWjVGXHSURFHVVULJKWVPD\EHYLRODWHGLIWKHMXU\ ,@QDOOSUREDELOLW\KHLVQjWGHDG WK&LU FHUWGHQLHG86  8QLWHG6WDWHV \HWls$DW .DVSRZLF]7HVW  Y6WRODU])G WK&LU FHUWGHQLHG 86  $VKHUPDQY0HDFKXP)6XSS $VWKHGLVWULFWFRXUWFRUUHFWO\IRXQGWKHWHVWLPRQ\RIWKH  ' &RQQ  &DEUDQHV s  FLWLQJ FDVHV  DIIjG  WZR QXUVHV ZDV DGPLVVLEOH WR UHEXW 6H\PRXUjV WHVWLPRQ\ )G G&LU 8QGHU2KLRODZPDQVODXJKWHULVD 6H\PRXUWHVWLILHGWKDWVKHGLGQjWNQRZWKDW5HDPVKDGEHHQ OHVVHU LQFOXGHG RIIHQVH RI PXUGHU VLQFH WKH HOHPHQWV RI VKRWEXWWKDWDWVRPHSRLQWODWHULQWKHHYHQLQJRI$XJXVW PDQVODXJKWHUDUHLQFOXGHGLQWKHRIIHQVHRIPXUGHU6HH2+,2 VKHOHDUQHGIURPKHUVLVWHUWKDWWKHUHKDGEHHQDQmDFFLGHQWl  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  DWWKHDSDUWPHQW6H\PRXUDOVRWHVWLILHGWKDWVKHQHYHUVDLGWR *&ODLPV6HYHQDQG(OHYHQsXU\,QVWUXFWLRQV WKH QXUVH WKDW 5HDPV ZDV SUREDEO\ QRW GHDG \HW  )LQDOO\ 6H\PRXU WHVWLILHG WKDW VKH UHTXHVWHG DQ DWWRUQH\ ZKLOH VKH 6H\PRXU REMHFWV WR WKH WULDO FRXUWjV MXU\ LQVWUXFWLRQV RQ ZDVLQWKHKRVSLWDO$OWKRXJK6H\PRXUODFNHGQRWLFHRIWKHVH VHYHUDO JURXQGV  6RPH RI WKHVH JURXQGV DUH GHIDXOWHG ZLWQHVVHVjWHVWLPRQ\WKHGLVWULFWDWWRUQH\LQIRUPHGWKHWULDO EHFDXVH6H\PRXUGLGQRWUDLVHWKHPEHIRUHWKH2KLR&RXUWRI FRXUWWKDWKHKDGMXVWEHFRPHDZDUHRIWKHZLWQHVVHVWKDWGD\ $SSHDOVRUEHFDXVHWKHFRXUWRIDSSHDOVUHYLHZHGWKHPRQO\ DQGWKHUHIRUHFRXOGQRWKDYHPDGHWKHLUQDPHVDYDLODEOHWR IRU SODLQ HUURU GXH WR 6H\PRXUjV IDLOXUH WR FRPSO\ ZLWK 6H\PRXU DQ\ VRRQHU  )XUWKHUPRUH DV WKH GLVWULFW FRXUW 2KLRjVFRQWHPSRUDQHRXVREMHFWLRQUXOH6HH6H\PRXU SRLQWHGRXW6H\PRXUjVDWWRUQH\DSSDUHQWO\GLGQRWUHTXHVWD :/DW  VHHDOVR6WDWHY8QGHUZRRG FRQWLQXDQFHWRSUHSDUHWRUHVSRQGWRWKHQHZWHVWLPRQ\,Q 1(G 2KLR &RQWUROOLQJSUHFHGHQWLQRXU OLJKW RI WKH ZLGH ODWLWXGH DIIRUGHG WR VWDWHV ZLWK UHJDUG WR FLUFXLWLQGLFDWHVWKDWSODLQHUURUUHYLHZGRHVQRWFRQVWLWXWHD HYLGHQWLDU\PDWWHUVXQGHUWKH'XH3URFHVV&ODXVHWKLVFRXUW ZDLYHU RI VWDWH SURFHGXUDO GHIDXOW UXOHV  6HH 3DSURFNL Y FDQQRWVD\XQGHUWKHUHOHYDQW6XSUHPH&RXUWSUHFHGHQWWKDW )ROW])G WK&LU  VWDWLQJWKDWWKH 6H\PRXUjV GXH SURFHVV ULJKWV ZHUH YLRODWHG E\ WKH VWDWHjV VWDWHFRXUWjVUHYLHZRIDFODLPIRUmPDQLIHVWLQMXVWLFHlGLGQRW LQWURGXFWLRQRIWKHWHVWLPRQ\RIWKRVHUHEXWWDOZLWQHVVHV&I FRQVWLWXWH D ZDLYHU E\ WKH VWDWH RI LWV FRQWHPSRUDQHRXV *UD\Y1HWKHUODQG86   UHMHFWLQJ REMHFWLRQUXOH %XWVHH(QJOHY,VDDF86 D KDEHDV SHWLWLRQHUjV GXH SURFHVV FKDOOHQJH WR WKH VWDWHjV Q   VXJJHVWLQJ WKDW UHYLHZ IRU SODLQ HUURU PLJKW IDLOXUHWRJLYHKLPVXIILFLHQWQRWLFHRILWVLQWHQWWRXVHFHUWDLQ FRQVWLWXWHZDLYHURIDVWDWHSURFHGXUDOEDU 7KRVHFODLPVWKDW HYLGHQFH DW WULDO FRQFOXGLQJ WKDW VXFK D FKDOOHQJH ZRXOG KDYHQRWEHHQGHIDXOWHGDUHGLVFXVVHGEHORZ UHTXLUHWKHDGRSWLRQRIDQHZUXOHRIFRQVWLWXWLRQDOODZ  5HDVRQDEOH'RXEW 6H\PRXU DOVR FODLPV WKDW WKH WULDO FRXUW YLRODWHG KHU FRQVWLWXWLRQDOULJKWVZKHQLWUHIXVHGWRSHUPLWKHUWRFDOOD 6H\PRXU REMHFWV WR WKH WULDO FRXUWjV LQVWUXFWLRQ GHILQLQJ VXUUHEXWWDOZLWQHVVKHUIULHQG.D\1HYHZKRZDVDOVRDWWKH mSURRIEH\RQGDUHDVRQDEOHGRXEWlLQSDUWDVmSURRIRIVXFK KRVSLWDO DQG ZRXOG WHVWLI\ DV WR ZKDW WKH QXUVHV VDLG WKDW FKDUDFWHUWKDWDQRUGLQDU\SHUVRQZRXOGEHZLOOLQJWRUHO\DQG 6H\PRXUVDLG7KHWULDOFRXUWGLGQRWVWDWHRQWKHUHFRUGLWV DFWXSRQLWLQWKHPRVWLPSRUWDQWRIKLVRZQDIIDLUVls$DW UHDVRQV IRU GHQ\LQJ 6H\PRXUj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jVUXOLQJHYHQLIHUURQHRXVZRXOGULVHWRWKHOHYHO  RIDGXHSURFHVVYLRODWLRQ 7KRVH FODLPV ZHUH WKDW WKH WULDO FRXUW HUUHG E\ IDLOLQJ WR LQVWUXFW RQ mKRQHVW PLVWDNHl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jV FDOO WR WKH SROLFH  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU   )DLOXUHWR,QWURGXFH(YLGHQFHRI%DWWHUHG:RPDQ YLRODWLRQVUHODWLQJWRKHUDUUHVWDQGLQWHUURJDWLRQ6H\PRXUjV 6\QGURPH )RXUWK$PHQGPHQWFODLPVnUHJDUGLQJWKHOHJDOLW\RIKHU DUUHVWDWWKHKRVSLWDOWKHSHUPLVVLELOLW\RI6KHULII5DGFOLIIjV 2KLRODZRIILFLDOO\UHFRJQL]HVWKHH[LVWHQFHRImEDWWHUHG SXUVXLQJKHURXWVLGHKLVMXULVGLFWLRQZLWKRXWDZDUUDQWDQGRI ZRPDQV\QGURPHl %:6 DQGSURYLGHVWKDWH[SHUWWHVWLPRQ\ WKHYDOLGLW\RIWKHVHDUFKRI6H\PRXUjVDXWRPRELOHnDUHQRW UHJDUGLQJ%:6PD\EHSUHVHQWHGDWWULDOWRKHOSHVWDEOLVKDV FRJQL]DEOHRQKDEHDVFRUSXVUHYLHZ6H\PRXUGRHVQRWDQG DQHOHPHQWRIVHOIGHIHQVHWKDWWKHGHIHQGDQWEHOLHYHGKHUVHOI FDQQRWFODLPWKDWWKH6WDWHRI2KLRGLGQRWSURYLGHKHUZLWK WREHLQLPPLQHQWGDQJHURIGHDWKRUJUHDWERGLO\KDUP6HH DIXOODQGIDLURSSRUWXQLW\WROLWLJDWHKHU)RXUWK$PHQGPHQW 2+,2 5(9 &2'(† %DOGZLQ 6H\PRXUDUJXHV FODLPV LQGHHG VKH GLG VR LQ D VXSSUHVVLRQ KHDULQJ EHIRUH WKDWKHUFRXQVHOZDVLQHIIHFWLYHIRUIDLOLQJWRSUHVHQWVXFK WULDO7KHUHIRUHVKHFDQQRWREWDLQKDEHDVUHOLHIEDVHGRQDQ\ HYLGHQFH  ,Q ([KLELW , WR KHU KDEHDV SHWLWLRQ 6H\PRXU DOOHJHGLOOHJDOVHDUFKRUVHL]XUH6HH6WRQHY3RZHOO SDLQVWDNLQJO\ODLGRXWVSHFLILFHOHPHQWVRIWKHV\QGURPHDQG 86   OLVWHGWKHSRUWLRQVRIWKHUHFRUGWKDWVXSSRUWDILQGLQJRIHDFK RIWKRVHHOHPHQWV 6H\PRXUDOVRFKDOOHQJHVWKHWULDOFRXUWjVIDLOXUHWRVXSSUHVV WKHVWDWHPHQWVWKDWVKHPDGHWR6KHULII5DGFOLIIZKLOHLQWKH $OWKRXJKLWVHHPVWKDWH[SHUWWHVWLPRQ\RQ%:6ZRXOG KRVSLWDO  ,Q SDUWLFXODU 6H\PRXU FODLPV WKDW VKH GLG QRW KDYHEHHQDGPLVVLEOHLQ6H\PRXUjVWULDOZHFDQQRWVD\WKDW UHFHLYH0LUDQGDZDUQLQJVEHIRUHEHLQJLQWHUURJDWHGLQWKH 6H\PRXUjVFRXQVHOZDVXQFRQVWLWXWLRQDOO\GHILFLHQWIRUIDLOLQJ KRVSLWDODQGWKDWKHUUHTXHVWVIRUDQDWWRUQH\ZHUHUHSHDWHGO\ WRSUHVHQWVXFKHYLGHQFH7KHFRQFOXVLRQWKDWWKHRXWFRPHRI GHQLHG  )XUWKHUPRUH VKH VXJJHVWV WKDW VKH ZDV WRR LOO RU WKH WULDO ZRXOG KDYH EHHQ GLIIHUHQW LI WKLV HYLGHQFH ZHUH GUXJJHGWRJLYHDYROXQWDU\VWDWHPHQWWR6KHULII5DGFOLIIDW SUHVHQWHGLVVLPSO\WRRVSHFXODWLYHnHVSHFLDOO\LQOLJKWRI WKDW WLPH DQG WKDW 6KHULII 5DGFOLII XQIDLUO\ XVHG KLV WKHIDFWVWKDW6H\PRXUZDVQRORQJHULQYROYHGLQWKHDEXVLYH IULHQGVKLSZLWKKHUWRLQGXFHKHUWRPDNHDVWDWHPHQWWRKLP UHODWLRQVKLS DQG WKDW 6H\PRXU KHUVHOI KDG DFWHG YLROHQWO\ WRZDUG5HDPVSULRUWRWKHVKRRWLQJVHH6H\PRXU:/ 2XU ILUVW LQTXLU\ XQGHU WKH )LIWK $PHQGPHQW LV ZKHWKHU DW 6H\PRXUWKHUHIRUHKDVQRWVKRZQSUHMXGLFH 6KHULII 5DGFOLII DGYLVHG 6H\PRXU RI KHU 0LUDQGD ULJKWV GXHWRKHUFRXQVHOjVIDLOXUHWRLQWURGXFHH[SHUWWHVWLPRQ\RQ ([DPLQLQJ WKH FRQIOLFWLQJ WHVWLPRQ\ RQ WKH LVVXH WKH WULDO %:6&I6WDWHY6DOOLH1(G 2KLR FRXUWPDGHDIDFWXDOILQGLQJWKDWWKH0LUDQGDZDUQLQJVZHUH KROGLQJ WKDW LQ FHUWDLQ FLUFXPVWDQFHV mWKH ODFN RI H[SHUW DGPLQLVWHUHGWR6H\PRXU*LYHQWKHFUHGLELOLW\DVVHVVPHQW WHVWLPRQ\RQEDWWHUHGZRPDQV\QGURPHFDQEHFRQVLGHUHGD VRXQG UHDVRQDEOH WULDO VWUDWHJ\l DQG GRHV QRW QHFHVVDULO\ GHPRQVWUDWHGHILFLHQWSHUIRUPDQFHRUSUHMXGLFH   %HIRUH WKH GLVWULFW FRXUW 6H\PRXU DOVR REMHFWHG WR WKH SURVHFXWRUjV SUHVHQFH LQ WKH KRVSLWDO URRP GXULQJ WKH LQWHUURJDWLRQ DQG WKH VXEVHTXHQW &XPXODWLYH(UURU FRQFHDOPHQW RI WKLV IDFW DW WULDO +RZHYHU LW LV XQFOHDU ZKDW NLQG RI YLRODWLRQ RI IHGHUDO ODZ 6H\PRXU LV FODLPLQJ LQ WKLV UHVSHFW DQG VKH GRHV %HFDXVHWKHLQGLYLGXDOFODLPVRILQHIIHFWLYHQHVVDOOHJHGE\ QRW DSSHDU WR HQJDJH WKH LVVXH LQ KHU DSSHOODWH EULHI 7KHUHIRUH ZH GR QRW 6H\PRXUDUHDOOHVVHQWLDOO\PHULWOHVV6H\PRXUFDQQRWVKRZ DGGUHVV WKLV FODLP 0RUHRYHU WR WKH H[WHQW WKDW 6H\PRXU DWWHPSWV WR WKDW WKH FXPXODWLYH HUURU RI KHU FRXQVHO UHQGHUHG KLP PDNH RXW D FODLP RI SURVHFXWRULDO PLVFRQGXFW RQ WKLV EDVLV ZH QRWH EHORZ WKDW WKLV FODLP LV SURFHGXUDOO\ EDUUHG 6HH LQIUD QRWH  LQHIIHFWLYH  7KH WULDO FRXUW PDGH D ILQGLQJ WKDW 6H\PRXU ZDV LQ FXVWRG\ ZKHQ VKH ZDV LQWHUURJDWHG DW WKH KRVSLWDO DQG WKDW ILQGLQJ KDV QRW EHHQ FKDOOHQJHG  6H\PRXUY:DONHU 1R 1R 6H\PRXUY:DONHU  UHTXLUHGWRPDNHVXFKDGHWHUPLQDWLRQDQGWKHGHIHUHQFHGXH )DLOXUHWR&DOOsXOLH%XVNLUN WRVWDWHFRXUWIDFWXDOILQGLQJVXQGHU$('3$ZHFDQQRWVD\ WKDW WKH WULDO FRXUWjV ILQGLQJ ZDV XQUHDVRQDEOH XQGHU 6H\PRXUDWWDFKHGWRKHUKDEHDVSHWLWLRQDQDIILGDYLWIURP † G   sXOLH%XVNLUNLQZKLFK%XVNLUNVWDWHVWKDWVKHKDGSHUVRQDO NQRZOHGJHRIPDQ\PDWWHUVUHOHYDQWWR6H\PRXUjVGHIHQVH 7KH WULDO FRXUW DOVR IRXQG WKDW 6H\PRXU ZDLYHG KHU DQG WKDW KDG VKH EHHQ FDOOHG WR WHVWLI\ VKH ZRXOG KDYH 0LUDQGDULJKWVGXULQJWKHLQWHUURJDWLRQ$VWKHGLVWULFWFRXUW FRQWUDGLFWHGWKHWHVWLPRQ\RIVHYHUDOSURVHFXWLRQZLWQHVVHV H[SODLQHGWKLVLVDPRUHSUREOHPDWLFILQGLQJ$GHIHQGDQWjV 6H\PRXUFODLPVWKDWWKLVGHPRQVWUDWHVWKDWKHUFRXQVHOZDV ZDLYHURI0LUDQGDULJKWVPXVWEHIRXQGEDVHGRQWKHWRWDOLW\ LQHIIHFWLYHIRUIDLOLQJWRFDOO%XVNLUN$OWKRXJK%XVNLUNjV RI WKH FLUFXPVWDQFHV WR EH YROXQWDU\ NQRZLQJ DQG WHVWLPRQ\PD\LQGHHGKDYHEROVWHUHG6H\PRXUjVGHIHQVHWKLV LQWHOOLJHQW6HH0RUDQY%XUELQH86   FRXUW FDQQRWVD\WKDW6H\PRXUjVFRXQVHOZDVGHIHFWLYHIRU 7KHVWDWHKDVWKHEXUGHQRISURYLQJWKHYROXQWDULQHVVRIWKH IDLOLQJWRFDOOKHU%XVNLUNFDQQRWEHFRQVLGHUHGDQHVVHQWLDO ZDLYHUE\DSUHSRQGHUDQFHRIWKHHYLGHQFHEXWWKHUHPXVWEH ZLWQHVVE\DQ\PHDQVVKHZDVQRWDZLWQHVVWRWKHVKRRWLQJ DQ HOHPHQW RI SROLFH FRHUFLRQ LQ RUGHU IRU D ZDLYHU WR EH DQGDVWKHVLVWHURIWKHGHIHQGDQWZRXOGOLNHO\EHFRQVLGHUHG IRXQGLQYROXQWDU\6HH&RORUDGRY&RQQHOO\86 E\ WKH MXU\ WR EH ELDVHG  7R FRQVLGHU 6H\PRXUjV FRXQVHO     7KH WULDO FRXUW DSSHDUV WR KDYH EDVHG LWV GHIHFWLYHIRUIDLOLQJWRFDOOKHUWRWHVWLI\ZRXOGEHWRHQJDJH ILQGLQJRIDYDOLGZDLYHURQWKHIDFWWKDW6H\PRXUSURFHHGHG LQSUHFLVHO\WKHNLQGRIVHFRQGJXHVVLQJRIWULDOVWUDWHJ\WKDW WRWDONWR6KHULII5DGFOLIIDIWHUKHDULQJWKH0LUDQGDZDUQLQJV WKH6XSUHPH&RXUWVWURQJO\GLVFRXUDJHGLQ6WULFNODQG6HHLG DW7KLVFODLPPXVWWKHUHIRUHIDLO 6KHULII5DGFOLIIjVWHVWLPRQ\GHPRQVWUDWHVWKDWLWLVDFORVH TXHVWLRQ ZKHWKHU 6H\PRXU LQ IDFW ZDLYHG KHU ULJKWV )DLOXUHWR0RYHWR6XSSUHVV(YLGHQFH $OWKRXJK5DGFOLIIVWDWHGWKDW6H\PRXUmDFNQRZOHGJHGVKH ZRXOGWDONZLWKlKLPWKDWKHmIHOWFRQILGHQWLQNQRZLQJKHU 6H\PRXUDUJXHVWKDWKHUFRXQVHOZDVLQHIIHFWLYHIRUIDLOLQJ XQGHUVWDQGLQJRIZKDW>KH@ZDVVD\LQJls$DW 7URI WRPRYHWRVXSSUHVVWKHHYLGHQFHJDWKHUHGZKHQWKHSROLFH +UjJRQ0RWWR6XSSUHVV DQGWKDW6H\PRXUWROGKLPWKDW HQWHUHGKHUDSDUWPHQWZLWKRXWDZDUUDQWLPPHGLDWHO\DIWHUWKH VKH GLG QRW ZDQW D ODZ\HU KH GLG QRW REWDLQ DQ H[SUHVV VKRRWLQJ$VWKHGLVWULFWFRXUWFRUUHFWO\H[SODLQHGWKHSROLFH ZULWWHQRUYHUEDOZDLYHUGHVSLWHKDYLQJZDLYHUIRUPVQHDUE\ ZHUH QRW UHTXLUHG WR REWDLQ D ZDUUDQW ZKHQ HQWHULQJ 0RUHRYHU 5DGFOLII JDYH YDJXH VXEMHFWLYH DQVZHUV ZKHQ 6H\PRXUjVDSDUWPHQWLQUHVSRQVHWRWKHHPHUJHQF\SKRQHFDOO TXHVWLRQHGDVWRKRZKHNQHZWKDW6H\PRXUKDGZDLYHGKHU IURP5HDPVEHFDXVHWKH\UHDVRQDEO\EHOLHYHGWKDW5HDPV ULJKWV ZDVLQQHHGRILPPHGLDWHDVVLVWDQFH6HH0LQFH\Y$UL]RQD 86  )XUWKHUPRUHLWGRHVQRWDSSHDU WKDWWKHVHDUFKH[FHHGHGWKHRIILFHUVjSODLQYLHZVHHLGDW  ,Q WKH GXH SURFHVV FRQWH[W WKH 6XSUHPH &RXUW KDV H[SODLQHG WKDW WKHRQO\IUXLWVRIWKHVHDUFKZHUH5HDPVjVVWDWHPHQWWKDW YROXQWDULQHVV RI D FRQIHVVLRQ LV D TXHVWLRQ RI ODZ UHYLHZHG XQGHU 6H\PRXUVKRWKLPEHFDXVHRIWKHLUGDXJKWHUDQGWKHIDFWWKDW †  G   DQG WKH mVXEVLGLDU\ IDFWXDO TXHVWLRQVl VXUURXQGLQJ WKH WKHUH DSSHDUHG WR EH QR VWUXJJOH LQ WKH DSDUWPHQW  7KLV FRQIHVVLRQ DUH UHYLHZHG GHIHUHQWLDOO\ XQGHU †  G  DQG HYLGHQFHWKXVVKRXOGQRWKDYHEHHQVXSSUHVVHGDQG6H\PRXU †  H   0LOOHU Y )HQWRQ  86     VHH DOVR FDQQRWVKRZGHIHFWLYHSHUIRUPDQFHRUSUHMXGLFHGXHWRKHU 7KRPSVRQ Y .HRKDQH  86    QRWLQJ WKDW GLVFHUQLQJ WKH mFLUFXPVWDQFHV VXUURXQGLQJ WKH LQWHUURJDWLRQl DQG GUDZLQJ FRXQVHOj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jV FODLPV ZLWKRXW DQ NQHZPHDQG,IHOWFRPIRUWDEOHWKDWLIVKHZRXOGKDYH RSLQLRQWKLVFRXUWPXVWDVVXPHWKDWWKHUHMHFWLRQUHVWHGRQ VDLGVKHGLGQjWXQGHUVWDQGKHUULJKWVNQRZLQJKHULQWKH DGHTXDWH DQG LQGHSHQGHQW VWDWHODZ JURXQGV EHFDXVH WKH SDVWVKHZRXOGKDYHVDLGVXFK6KHFRQWLQXHGRQ,QP\ 2KLR 6XSUHPH &RXUWjV VXPPDU\ RUGHU GRHV QRW mIDLUO\ RSLQLRQ , IXOILOOHG ZKDW LV RQ WKLV IRUP DV IDU DV WKH DSSHDUlWRUHVWRQIHGHUDOODZ&ROHPDQY7KRPSVRQ ZDLYHULVFRQFHUQHG 86      $V QRWHG DERYH 6H\PRXU KDV QRW VKRZQFDXVHIRUKHUGHIDXOW s$DW)XUWKHUPRUHDVWKH2KLR&RXUWRI$SSHDOV IRXQG6H\PRXUZDVLQWKHLQWHQVLYHFDUHXQLWDWWKHWLPHRI :H QH[W DGGUHVV WKH PHULWV RI 6H\PRXUj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jVFRPPHQWVRQ FDSDFLW\DQGDVDIULHQG WKHIDFWWKDW6H\PRXUjVVLVWHUsXOLH%XVNLUNGLGQRWWHVWLI\ 6H\PRXU FODLPV WKDW %XVNLUN ZDV SUHVHQW DQG ZLOOLQJ WR 7KH6XSUHPH&RXUWKDVHPSKDVL]HGWKDWZDLYHUFDQQRWEH WHVWLI\LQ6H\PRXUjVGHIHQVHEXWWKDWKHUFRXQVHOGLGQRWFDOO LQIHUUHG IURP VLOHQFH RU IURP WKH IDFW WKDW WKH GHIHQGDQW KHU6H\PRXUDOVRREMHFWVWRWKHSURVHFXWRUjVFRPPHQWVRQ XOWLPDWHO\FRQIHVVHV6HHHJ1RUWK&DUROLQDY%XWOHU FHUWDLQPLVVLQJHYLGHQFHVXFKDV6H\PRXUjVSXUVH 86      :DLYHU PD\ LQ VRPH FDVHV EH LQIHUUHG KRZHYHU IURP mWKH GHIHQGDQWjV VLOHQFH FRXSOHG $VZHGLVFXVVDWJUHDWHUOHQJWKEHORZVHHLQIUD3DUW,,+ ZLWKDQXQGHUVWDQGLQJRIKLVULJKWVDQGDFRXUVHRIFRQGXFW ZH FRQFOXGH WKDW WKRVH UHPDUNV ZHUH QRW LPSURSHU LQGLFDWLQJZDLYHUl,GDW,QOLJKWRIWKHFORVHQHVVRIWKH 0RUHRYHU 6H\PRXU KDV QRW VKRZQ WKDW REMHFWLQJ WR WKH TXHVWLRQWKHWULDOFRXUWjVILQGLQJFDQQRWEHVDLGWREHFRQWUDU\ SURVHFXWRUjVUHPDUNVZRXOGKDYHFKDQJHGWKHRXWFRPHRIKHU WRRUDQXQUHDVRQDEOHDSSOLFDWLRQRI%XWOHUDQG0RUDQ6HH FDVH LQGHHG WKH DOOHJHGO\ RIIHQVLYH UHPDUNV ZHUH QRW :LOOLDPV 86 DW   6 &W DW  VWDWLQJ WKDW mD H[WHQVLYHRUIODJUDQW&I8QLWHG6WDWHVY'DNRWD)G IHGHUDOKDEHDVFRXUWPD\QRWLVVXHWKHZULWVLPSO\EHFDXVH  WK&LU 7KHUHIRUH6H\PRXUFDQQRWVKRZ WKDW FRXUW FRQFOXGHV LQ LWV LQGHSHQGHQW MXGJPHQW WKDW WKH SUHMXGLFHDVUHTXLUHGE\6WULFNODQG6HH6WULFNODQG86 UHOHYDQW VWDWHFRXUW GHFLVLRQ DSSOLHG FOHDUO\ HVWDEOLVKHG DW IHGHUDO ODZ HUURQHRXVO\ RU LQFRUUHFWO\l EHFDXVH WKH VWDWH FRXUWjVDSSOLFDWLRQRIIHGHUDOODZPXVWDOVREHXQUHDVRQDEOH   6H\PRXU SRLQWV WR ([KLELWV ) DQG * WR KHU KDEHDV SHWLWLRQ FRQWDLQLQJ DQ DIILGDYLW RI sXOLH %XVNLUN DQG D VXUYH\ RI WKH MXURUVj LPSUHVVLRQV UHVSHFWLYHO\ DV GHPRQVWUDWLQJ SUHMXGLFH %HFDXVH WKH SURVHFXWRUjV UHPDUNV ZHUH QRW LPSURSHU KRZHYHU LW LV LUUHOHYDQW ZKHWKHU WKH\ LQIOXHQFHG WKH MXURUVj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jVMXGJPHQWGLVPLVVLQJKHUDSSHDODVUDLVLQJ WRUDLVHDOORIWKRVHFODLPVDJDLQRQDSSHDO QRVXEVWDQWLDOFRQVWLWXWLRQDOTXHVWLRQ7KRVHFODLPVWRRDUH :KHQ GHFLGLQJ ZKHWKHU D FODLP KDV EHHQ SURFHGXUDOO\ GHIDXOWHGWKLVFRXUWPXVWILUVWGHWHUPLQHZKHWKHUmWKHUHLVD  VWDWHSURFHGXUDOUXOHWKDWLVDSSOLFDEOHWRWKHSHWLWLRQHUjVFODLP 7KH FODLPV WKDW 6H\PRXU UDLVHG IRU WKH ILUVW WLPH RQ SRVWFRQYLFWLRQ DQG>ZKHWKHU@WKHSHWLWLRQHUIDLOHGWRFRPSO\ZLWKWKHUXOHl UHYLHZ DUH WKDW KHU FRXQVHO ZDV LQHIIHFWLYH IRU  IDLOLQJ WR FDOO D QXPEHU RI GHIHQVH ZLWQHVVHV VXFK DV KHU HPSOR\HU KHU GLYRUFH ODZ\HU DQG WKH 0DXSLQY6PLWK)G WK&LU 1H[W ODZ\HU ZKR ZDV UHSUHVHQWLQJ 6H\PRXU LQ KHU FXVWRG\ DSSHDO  IDLOLQJ WKLVFRXUWFRQVLGHUVZKHWKHUWKHSURFHGXUDOUXOHZDVDFWXDOO\ WR FDOO D ZLWQHVV ZKR ZRXOG WHVWLI\ WKDW 6H\PRXU KDG EUXLVHV ZKHQ VKH HQIRUFHGLQWKHSHWLWLRQHUjVFDVH6HHLG)LQDOO\WKLVFRXUW ZDV ILUVW DUUHVWHG WKXV GHPRQVWUDWLQJ WKDW 6H\PRXU KDG VWUXJJOHG ZLWK mPXVW GHFLGH ZKHWKHU WKH VWDWH SURFHGXUDO IRUIHLWXUH LV DQ 5HDPV EHIRUH VKRRWLQJ KLP  DQG  IDLOLQJ WR FDOO D ZLWQHVV WR UHEXW WKH µDGHTXDWHDQGLQGHSHQGHQWjVWDWHJURXQGRQZKLFKWKHVWDWH UHEXWWDO WHVWLPRQ\ RI WKH QXUVHV ZKR WHVWLILHG WKDW 6H\PRXU GLG QRW DVN IRU D ODZ\HU DQG WKDW 6H\PRXU VSHFXODWHG WKDW 5HDPV ZDV QRW \HW GHDG FDQUHO\WRIRUHFORVHUHYLHZRIDIHGHUDOFRQVWLWXWLRQDOFODLPl ,G2KLRKDVDUXOHWKDWFODLPVPXVWEHUDLVHGRQGLUHFWDSSHDO  $OWKRXJK WKH 2KLR &RXUW RI $SSHDOV LQ UHYLHZLQJ 6H\PRXUjV LI SRVVLEOH RWKHUZLVH UHV MXGLFDWD EDUV WKHLU OLWLJDWLRQ LQ SRVWFRQYLFWLRQ UHOLHI SHWLWLRQ FRQVLGHUHG WKRVH FODLPV RQ WKH PHULWV LW VXEVHTXHQWVWDWHSURFHHGLQJV6HH6WDWHY3HUU\1(G DOVR PDGH FOHDU DV DQ DOWHUQDWH KROGLQJ  WKDW WKH FODLPV ZHUH EDUUHG E\  2KLR   V\OODEXV SDUD    7KLV UXOH ZDV UHV MXGLFDWD VLQFH WKH\ FRXOG KDYH EHHQ UDLVHG RQ GLUHFW DSSHDO DQG ZHUH FRQVLVWHQWO\DSSOLHGLQ6H\PRXUjVFDVHDQGWKHUHKDVEHHQQR QRW  1R  &$   :/  DW  2KLR &W $SS 2FW    7KXV XQGHU WKH UXOH RI  6HH 6WDWH Y 6H\PRXU VXJJHVWLRQWKDWLWLVQRWDQDGHTXDWHDQG LQGHSHQGHQWVWDWH  86    WKH VWDWH FRXUW KDV PDGH LW VXIILFLHQWO\ FOHDU WKDW LWV +DUULV Y 5HHG JURXQGWKDWFDQIRUHFORVHIHGHUDOUHYLHZ GHFLVLRQ ZDV EDVHG RQ DQ mDGHTXDWH DQG LQGHSHQGHQW VWDWH JURXQGl WKDW SUHFOXGHG IHGHUDO UHYLHZ DW  Q ,G 6H\PRXUjVLQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPVIDOOLQWR WKUHH FDWHJRULHV  )LUVW WKHUH DUH WKRVH FODLPV WKDW VKH  7KH JURXQGV IRU LQHIIHFWLYHQHVV UDLVHG IRU WKH ILUVW WLPH LQ WKDW SURSHUO\SUHVHUYHGE\UDLVLQJWKHPEHIRUHWKH2KLR&RXUWRI PRWLRQ ZHUH DV IROORZV  IDLOXUH WR REMHFW WR WKH LQGLFWPHQW DV YLRODWLYH $SSHDOV  6HH 6WDWH Y &ROH  1(G  2KLR   RI 6H\PRXUjV 6HFRQG $PHQGPHQW ULJKWV  IDLOXUH WR FDOO WKH SURVHFXWRU V\OODEXV KROGLQJWKDWGHIHQGDQWVDUHUHTXLUHGZKHQSRVVLEOH DV D ZLWQHVV UHJDUGLQJ WKH LOOHJDOLW\ RI 6H\PRXUjV DUUHVW DQG LQWHUURJDWLRQ WR UDLVH LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO FODLPV RQ GLUHFW  IDLOXUH WR LQIRUP WKH MXU\ RI WKH SURVHFXWRUjV SUHVHQFH LQ WKH KRVSLWDO DSSHDOWRSUHYHQWSURFHGXUDOGHIDXOW 7KRVHFODLPVDUHQRW URRP GXULQJ 6H\PRXUjV LQWHUURJDWLRQ  IDLOXUH WR FDOO DQ H[SHUW ZLWQHVV UHJDUGLQJ ZKHWKHU 6H\PRXUjV PHGLFDO VWDWH ZRXOG KDYH DOORZHG KHU WR GHIDXOWHG,QWKHVHFRQGFDWHJRU\DUHWKHFODLPVWKDW6H\PRXU ZDLYH KHU ULJKWV NQRZLQJO\ DQG YROXQWDULO\  IDLOXUH WR DUUDQJH IRU DQ H[DPLQDWLRQ RI 6H\PRXUjV FRPSHWHQF\ WR VWDQG WULDO  IDLOXUH WR 0LUDQGD GLGQRW UDLVHRQGLUHFWDSSHDOEXWUDLVHGLQKHUSHWLWLRQIRU TXHVWLRQ RU FDOO DQ\ ZLWQHVVHV DW WULDO RQ WKH PRELOLW\ RI WKH YLFWLP DQG WKH SRVLWLRQLQJ RI WKH YLFWLPjV ERG\ DV VXSSRUWLYH RI 6H\PRXUjV VHOIGHIHQVH WKHRU\  IDLOXUH WR TXHVWLRQ RU FDOO DQ H[SHUW ZLWQHVV DV WR ZKHWKHU WKH SUR[LPDWH FDXVH RI 5HDPVjV GHDWK ZDV WKH JXQVKRW ZRXQG RU PHGLFDO PDOSUDFWLFH  IDLOXUH WR REWDLQ H[SHUW WHVWLPRQ\ UHJDUGLQJ WKH FRQGLWLRQ RI WKH SLVWRO 6H\PRXU XVHG DQG WKH SRVVLELOLW\ RI DFFLGHQWDO GLVFKDUJH