Harborside Healthcar v. NLRB

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

Y1/5% (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
)LOH 1DPH DS

JLYH LWV GHFLVLRQ GXH GHIHUHQFH EXW ZH FDQQRW DIILUP D
GHFLVLRQZKHQDQLPSURSHUVWDQGDUGRIODZKDVEHHQDSSOLHG 81,7('67$7(6&28572)$33($/6
DQG ZKHQ LPSRUWDQW IDFWXDO ILQGLQJV DUH QRW VXSSRUWHG E\
VXEVWDQWLDOHYLGHQFHLQWKHUHFRUGDVDZKROH )257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB

+$5%256,'( +($/7+&$5( ;
,1& 
3HWLWLRQHU 
 1RV
&URVV5HVSRQGHQW 
!

Y 

1$7,21$/ /$%25 5(/$7,216 
%2$5' 
5HVSRQGHQW 

&URVV3HWLWLRQHU 
1
2Q3HWLWLRQIRU5HYLHZDQG&URVV$SSOLFDWLRQIRU
(QIRUFHPHQWRIDQ2UGHU
RIWKH1DWLRQDO/DERU5HODWLRQV%RDUG
1R&$
$UJXHG$XJXVW
'HFLGHGDQG)LOHG2FWREHU
%HIRUH.583$16.<:(//)25'DQG%2**6
&LUFXLWsXGJHV


 +DUERUVLGH+HDOWKFDUH 1RV 1RV +DUERUVLGH+HDOWKFDUH 
Y1/5% Y1/5%

BBBBBBBBBBBBBBBBB ZDV FOHDUO\ ZURQJ7KRPDV UHVLJQHG DIWHU WKH HOHFWLRQ RQ
2FWREHU7KHUHLVDVHULRXVTXHVWLRQZKHWKHU7KRPDVGLG
&2816(/ LQ IDFW JLYH VXFK mKLQWVl RU PRUH WKDQ MXVW mKLQWVl RI
mSURPLVHRIEHQHILWlRUmWKUHDWRIUHSULVDOlRQWKLVUHFRUGQRW
$5*8('  /DZUHQFH % )LQH 025*$1 /(:,6 DV FDUHIXOO\ SDUVHG E\ WKH KHDULQJ RIILFHU  7KLV FLUFXLWjV
%2&.,86//33KLODGHOSKLD3HQQV\OYDQLDIRU3HWLWLRQHU UHTXLUHPHQWV GR QRW LQFOXGH GLUHFW SURPLVHV RU WKUHDWV RU
sHIIUH\ +RURZLW] 1$7,21$/ /$%25 5(/$7,216 FRHUFLRQEXWUDWKHUWKHH[LVWHQFHRIVXSHUYLVRU\DXWKRULW\DQG
%2$5' $33(//$7( &2857 %5$1&+ :DVKLQJWRQ RSLQLRQVRQWKHH[WHQWRILWVH[HUFLVH
'& IRU 5HVSRQGHQW  21 %5,()  /DZUHQFH % )LQH
sHQQLIHU 0 &DODEUHVH 025*$1 /(:,6  %2&.,86 :H KDYH JRQH LQWR VRPH GHWDLO RQ WKHVH SUHFLVH 6L[WK
//3 3KLODGHOSKLD 3HQQV\OYDQLD IRU 3HWLWLRQHU  sHIIUH\ &LUFXLW VWDQGDUGV EHFDXVH WKH\ GLIIHU IURP WKH VWDQGDUGV
+RURZLW] $LOHHQ $ $UPVWURQJ &KDUOHV 3 'RQQHOO\ sU DSSOLHGE\WKHKHDULQJRIILFHUDQGWKH%RDUG7KHTXHVWLRQDV
1$7,21$//$%255(/$7,216%2$5'$33(//$7( SRVHGLQ(YHUJUHHQLVZKHWKHU7KRPDVjFRQGXFWmUHDVRQDEO\
&2857%5$1&+:DVKLQJWRQ'&IRU5HVSRQGHQW WHQGHGWRKDYHDFRHUFLYHHIIHFWlDQGmZDVOLNHO\WRLPSDLU
>WKHHPSOR\HHVj@IUHHGRPRIFKRLFHlQRWZKHWKHU7KRPDV
BBBBBBBBBBBBBBBBB SURPLVHGEHQHILWVRUPDGHWKUHDWVDVGHWHUPLQHGLQHUURUE\
WKHKHDULQJRIILFHU7KH%RDUGPHUHO\mDGRSWHGWKHKHDULQJ
23,1,21 RIILFHUjVILQGLQJVDQGUHFRPPHQGDWLRQVlZLWKRXWGLVFXVVLQJ
BBBBBBBBBBBBBBBBB WKHVHFUXFLDOGLVWLQFWLRQVQRWHG,QDGGLWLRQZHKDYHQRWHG
VRPHOLPLWHGEXWLPSRUWDQWH[FHSWLRQVWRWKHKHDULQJRIILFHUjV
+$55< : :(//)25' &LUFXLW sXGJH  +DUERUVLGH SXUSRUWHGFUHGLELOLW\GHWHUPLQDWLRQV
+HDOWKFDUH,QFm+DUERUVLGHlRSHUDWHVDEHGORQJWHUP
FDUH QXUVLQJ KRPH LQ %HDFKZRRG 2KLR  7KH 6HUYLFH :H QRWH DOVR WKH UHTXLUHPHQW VWDWHG LQ 6W )UDQFLV
(PSOR\HHV8QLRQm8QLRQlSHWLWLRQHGWKH5HJLRQDO'LUHFWRU +HDOWKFDUH  GLG WKH FRQGXFW LQ TXHVWLRQ LQWHUIHUH ZLWK
RI WKH 1DWLRQDO /DERU 5HODWLRQV %RDUG m1/5%l VHHNLQJ IUHHGRPRIFKRLFHVRWKDWmLWPDWHULDOO\DIIHFWHGWKHUHVXOWRI
FHUWLILFDWLRQ DV WKH H[FOXVLYH FROOHFWLYHEDUJDLQLQJ WKH HOHFWLRQ"l  7KH KHDULQJ RIILFHU GLG QRW GLVFXVV WKLV
UHSUHVHQWDWLYH RI +DUERUVLGHjV VHUYLFH DQG PDLQWHQDQFH TXHVWLRQLQKLVUHSRUWEHFDXVHKHIRXQGQRKLQWRIWKUHDWHQLQJ
HPSOR\HHV DW WKLV IDFLOLW\ RQ $XJXVW    2QH RI RUFRHUFLYHDFWLYLW\DOWKRXJKLWZDVFRQFHGHGO\LPSURSHUE\
+DUERUVLGHjV FKDUJH QXUVHV 5RELQ 7KRPDV D OLFHQVHG 7KRPDV
SUDFWLFDO QXUVH m/31l HQJDJHG LQ SURXQLRQ DFWLYLW\ DV
IRXQGE\WKHKHDULQJRIILFHUHYHQDIWHUEHLQJWROGWKDWVKH %HFDXVHDQLPSURSHUVWDQGDUGZDVDGRSWHGDVUHIOHFWHGLQ
KHOGDVXSHUYLVRU\SRVLWLRQDQGPXVWWHUPLQDWHKHUFDPSDLJQ RXU RSLQLRQ ZH 5(9(56( WKH DFWLRQ RI WKH %RDUG DQG
HIIRUWVIRUWKH8QLRQ 5(0$1'IRUDQDSSURSULDWHGHWHUPLQDWLRQXQGHUWKHSURSHU
6L[WK&LUFXLWVWDQGDUG
7KH5HJLRQDO'LUHFWRUFRQGXFWHGDVHFUHWEDOORWHOHFWLRQRQ
2FWREHUZKLFKUHVXOWHGLQIRUW\QLQHYRWHVLQIDYRU :HHPSKDVL]HWKDWZHGRQRWRYHUWXUQDQ1/5%GHFLVLRQ
RIXQLRQUHSUHVHQWDWLRQDQGWKLUW\VL[YRWHVDJDLQVW7KHUH OLJKWO\QRUGRZHUHDFKDGLIIHUHQWGHFLVLRQIURPWKDWRIWKH
ZHUH DOVR WZR FKDOOHQJHG EDOORWV DQG RQH YRLG EDOORW  $ %RDUGEDVHGXSRQFUHGLELOLW\GHWHUPLQDWLRQVDORQH1HLWKHU
FKDQJHRIVL[YRWHVDERXWVHYHQSHUFHQWRIYRWHVFDVWZRXOG GRZHLQWHQGWRXVXUSWKHSURSHUDXWKRULW\RIWKH%RDUG:H
KDYHEURXJKWDERXWDGLIIHUHQWUHVXOW+DUERUVLGHWLPHO\ILOHG
 +DUERUVLGH+HDOWKFDUH 1RV 1RV +DUERUVLGH+HDOWKFDUH 
Y1/5% Y1/5%

+HDULQJ2IILFHUjV)LQGLQJVDQG&RQFOXVLRQV REMHFWLRQVZLWKWKH5HJLRQDO'LUHFWRUZKRRUGHUHGDKHDULQJ
RQDSRUWLRQRIWKHILUVWREMHFWLRQV+DUERUVLGHQRZVHHNV
7KHKHDULQJRIILFHUjVOHJDOFRQFOXVLRQVZHUHEDVHGXSRQ UHYLHZ RI WKH DGYHUVHGHFLVLRQ RI WKH KHDULQJ RIILFHU DV
%RDUG DXWKRULW\ 3DFLILF 3K\VLFLDQ 6HUYLFHV  1/5% DIILUPHGE\WKH1/5% 
6XWWHU5RVHYLOOH0HGLFDO&HQWHU1/5%
 3DFLILF 0LFURQHVLD &RUS  1/5% 1R  7KHUHDIWHUWKH8QLRQUHTXHVWHGEDUJDLQLQJEXW+DUERUVLGH
WKDWHPSKDVL]HGUHTXLUHPHQWVRIFRHUFLRQDQGWKUHDWV UHIXVHG7KH8QLRQWKHQILOHGDQXQIDLUODERUSUDFWLFHFKDUJH
LQFRQMXQFWLRQZLWKRWKHUVXSHUYLVRU\SURXQLRQFRQGXFW$V DQGWKH*HQHUDO&RXQVHOWKHQILOHGDFRPSODLQWDOOHJLQJWKDW
SUHYLRXVO\SRLQWHGRXWRXUFLUFXLWSUHFHGHQWFRQVLGHUVQHLWKHU +DUERUVLGH YLRODWHG  86& † D DQG 
FRHUFLRQQRUWKUHDWVDVUHTXLUHGWRWDLQWDQHOHFWLRQPDUUHGE\ +DUERUVLGH DQVZHUHG DGPLWWLQJ LWV UHIXVDO WR EDUJDLQ EXW
SURXQLRQ VXSHUYLVRU\ FRQGXFW EXW UDWKHU WKH mGHJUHH RI GHQ\LQJWKHYDOLGLW\RIWKH%RDUGjVFHUWLILFDWLRQRIWKH8QLRQ
VXSHUYLVRU\ DXWKRULW\ SRVVHVVHGl QRW QHFHVVDULO\ DFWXDOO\ +DUERUVLGHWKHQUHVSRQGHGWRWKH*HQHUDO&RXQVHOjVPRWLRQ
XWLOL]HG DQG mWKH H[WHQW QDWXUH DQG RSHQQHVVl RI VXFK IRUVXPPDU\MXGJPHQWZKLFKWKH1/5%JUDQWHGRQsXO\
DFWLYLW\(YHUJUHHQDW ILQGLQJWKDW+DUERUVLGHYLRODWHG†DDQGE\
UHIXVLQJWREDUJDLQ+DUERUVLGHILOHGWKHLQVWDQWSHWLWLRQIRU
*UDQFDUH,QFGLVFXVVHGLQVRPHGHWDLOWKHQDWXUHRIWKH UHYLHZ UHTXHVWLQJ UHYHUVDO ZKLOH WKH 1/5% ILOHG D FURVV
GXWLHVDQGUHVSRQVLELOLWLHVLQDKHDOWKFDUHIDFLOLW\RIFKDUJH DSSOLFDWLRQ WR HQIRUFH LWV sXO\  RUGHU  7KLV &RXUW KDV
QXUVHV VXFK DV 7KRPDV ZKR ZH IRXQG H[HUFLVHG MXULVGLFWLRQSXUVXDQWWR86&†HI :HQRZ
mLQGHSHQGHQWMXGJPHQWlDQGDFWXDOUDWKHUWKDQmLVRODWHGlRU 5(0$1'WKHSHWLWLRQIRUUHYLHZIRUWKHUHDVRQVVWDWHG
LQFLGHQWDOVXSHUYLVRU\DXWKRULW\)GDW2XU
FRXUWLVDWRGGVZLWKWKH%RDUGLQWKLVUHVSHFWDVWKH8QLRQ
RUJDQL]HU QRWHG LQ VWLSXODWLQJ WKDW 7KRPDV ZDV LQGHHG D ,',6&866,21
VXSHUYLVRU WKRXJK VKH H[SUHVVHG KHU RZQ GRXEWV RQ WKLV
TXHVWLRQ*UDQFDUHHPSKDVL]HGWKDWZKLOHFKDUJHQXUVHVPD\ 6WDQGDUGRI5HYLHZ
EHmORZOHYHOlWKH\DUHWKHmUDQNLQJDXWKRULW\lSUHVHQWIRU
PXFK RI WKH WLPH DQG WKH LPPHGLDWH VXSHUYLVRUV LQ WKHLU 7KLVFRXUWUHYLHZVWKH1/5%jVmOHJDOFRQFOXVLRQVGHQRYR
GHSDUWPHQW:HGRQRWGHIHUWRWKH%RDUGjVSUHFHGHQWZLWK DQG LWV IDFWXDO ILQGLQJV XQGHU D VXEVWDQWLDO HYLGHQFH
UHVSHFWWRZKHWKHUDVXSHUYLVRUjVSURXQLRQFRQGXFWPXVWEH VWDQGDUGl.HQWXFN\5LYHU&RPPXQLW\&DUH,QFY1/5%
WKUHDWHQLQJDQGFRHUFLYHLQRUGHUWRDIIHFWXQIDLUO\D%RDUG
HOHFWLRQ  m,W LV WKH H[LVWHQFH RI GLVFLSOLQDU\ DXWKRULW\ WKDW

FRXQWV XQGHU WKH VWDWXWH DQG QRW WKH IUHTXHQF\ RI LWV +HDULQJ RIILFHU 5DQGDOO $ 0DOOR\ DIWHU WKH KHDULQJ RQ 'HFHPEHU 
H[HUFLVHl,GDW  TXRWLQJ%HYHUO\&DOLIRUQLD&RUSY  IRXQG WKDW WKH HOHFWLRQ ZDV QRW WDLQWHG E\ SURXQLRQ VXSHUYLVRU\
1/5%)GQWK&LU FRQGXFW DQG UHFRPPHQGHG WKDW WKH %RDUG RYHUUXOH WKH UHPDLQLQJ
REMHFWLRQV 7KH 1/5% DGRSWHG WKH 'LUHFWRUjV UHFRPPHQGDWLRQV DQG
LVVXHG DQ RUGHU RQ )HEUXDU\   ZKLFK FHUWLILHG WKH 8QLRQ DV WKH
7KHKHDULQJRIILFHUjVOHJDOFRQFOXVLRQQRWWRVHWDVLGHWKH H[FOXVLYH EDUJDLQLQJ UHSUHVHQWDWLYH
HOHFWLRQZDVEDVHGXSRQDWOHDVWDSHUFHSWLRQWKDWWKH%RDUG
UHTXLUHGmVRPHµKLQWRIUHWDOLDWLRQRQUHPDQGjl2QHRIWKH 
:H KDYH MXULVGLFWLRQ WR UHYLHZ WKH %RDUGjV DFWLRQV LQ WKH
KHDULQJRIILFHUjVEDVHVIRUQRWILQGLQJVXFKDmKLQWlZDVWKDW UHSUHVHQWDWLRQ SURFHHGLQJ VROHO\ IRU WKH SXUSRVH RI mHQIRUFLQJ
m7KRPDVYROXQWDULO\TXLWEHIRUHWKHHOHFWLRQl7KLVILQGLQJ PRGLI\LQJ RU VHWWLQJ DVLGH LQ ZKROH RU LQ SDUW WKH >XQIDLU ODERU SUDFWLFH@
RUGHU RI WKH %RDUGl  86& † G
 +DUERUVLGH+HDOWKFDUH 1RV 1RV +DUERUVLGH+HDOWKFDUH 
Y1/5% Y1/5%

)GWK&LUFHUWJUDQWHGBBB6&W 0RQLFD7K\PHDOVRDQH[SHULHQFHGQXUVLQJDLGHWHVWLILHG
BBB  :/  6HSW    :H UHYLHZ WKH DWWKHKHDULQJWKDW7KRPDVDVDFKDUJHQXUVHFRXOGGLVFLSOLQH
%RDUGjV XOWLPDWH GHWHUPLQDWLRQ JHQHUDOO\ IRU DEXVH RI KHU DV KHU mILUVW VXSHUYLVRUl DQG PDNH HYDOXDWLRQV RI WKHLU
GLVFUHWLRQ  6HH 1/5% Y 6W )UDQFLV +HDOWKFDUH &WU  ZRUN7K\PHKDGRFFDVLRQDOGHDOLQJVZLWK7KRPDVDQGRQH
)G    WK &LU  1/5% Y .LOJRUH SDUWLFXODUHQFRXQWHUZLWKKHUDERXWDZHHNEHIRUHWKHHOHFWLRQ
&RUS)GWK&LUm7KLV&RXUWZLOO ZKLFK VKH GHVFULEHG DV D mFRQIURQWDWLRQlmORXGl DQG
VHW DVLGH WKH %RDUGjV GHWHUPLQDWLRQ RQO\ LI LW KDV DFWHG mLQWLPLGDWLQJl  6KH IHOW mVOLJKWO\ WKUHDWHQHGl DV D
DUELWUDULO\DQGDEXVHGLWVGLVFUHWLRQl FRQVHTXHQFHDQGVDZ7KRPDVLQYROYHGLQRWKHU8QLRQDQG
mMRE VHFXULW\l GLVFXVVLRQV ZLWK RWKHU HPSOR\HHV 7K\PH
7KH%RDUGjVILQGLQJVRIIDFWDUHFRQFOXVLYHLIVXSSRUWHG DWWHQGHGD8QLRQPHHWLQJDW7KRPDVjXUJLQJ
E\VXEVWDQWLDOHYLGHQFH(YLGHQFHLVVXEVWDQWLDOZKHQLW
LV mµDGHTXDWH LQ D UHDVRQDEOH PLQG WR XSKROG WKH 7KRPDVGHQLHGVSHDNLQJWR3DYHOFKDNIRUWKH8QLRQEXW
>%RDUGjV@GHFLVLRQjl:HPXVWFRQVLGHUWKHUHFRUGDVD DGPLWWHGDmGHEDWHlZLWK7K\PHQRWDmKHDWHGGLVFXVVLRQl
ZKROH LQFOXGLQJ HYLGHQFH WKDW UXQV FRQWUDU\ WR WKH LQ KHU YLHZ  6KH DOVR GHQLHG DQ\ FRQWDFW ZLWK &DUWHU WKH
%RDUGjV ILQGLQJV  'HIHUHQFH WR WKH %RDUGjV IDFWXDO 8QLRQRUJDQL]HUZKRFRQWUDGLFWHGKHUWHVWLPRQ\
ILQGLQJV LV SDUWLFXODUO\ DSSURSULDWH ZKHUH FRQIOLFWLQJ
WHVWLPRQ\ UHTXLUHV WKH %RDUG WR PDNH FUHGLELOLW\ 7KHKHDULQJRIILFHUjVKDLUVSOLWWLQJDQDO\VLVRIWKHHIIHFWRI
GHWHUPLQDWLRQV7KH%RDUGjVDSSOLFDWLRQRIODZWRIDFWV WKH WHVWLPRQ\RI 3DYHOFKDN DQG 7K\PH LQ SDUWLFXODU DQG
LVDOVRUHYLHZHGXQGHUWKHVXEVWDQWLDOHYLGHQFHVWDQGDUG )UDQNsDFNVRQ WRDOHVVHUH[WHQWGHVFULEHGE\KLPDVmP\
DQG mµWKH %RDUGjV UHDVRQDEOH LQIHUHQFHV PD\ QRW EH FUHGLELOLW\ UHVROXWLRQVl LV XQSHUVXDVLYH SDUWLFXODUO\ KLV
GLVSODFHG RQ UHYLHZ HYHQ WKRXJK WKH FRXUW PLJKW UHOLDQFHXSRQ&DUWHUjVWHVWLPRQ\WRTXHVWLRQ3DYHOFKDNjVDQG
MXVWLILDEO\KDYHUHDFKHGDGLIIHUHQWFRQFOXVLRQKDGWKH 7K\PHjVHVVHQWLDOO\XQFRQWUDGLFWHGWHVWLPRQ\7KHKHDULQJ
PDWWHUEHHQEHIRUHLWGHQRYRjl RIILFHUYLHZHG7KRPDVDVPHUHO\ DmORZOHYHOVXSHUYLVRUl
ZLWKOLWWOHmLPSDFWl$WWKHVDPHWLPHWKHKHDULQJRIILFHUDW
6W)UDQFLV+HDOWKFDUH&WU)GDWTXRWDWLRQVDQG RQHSRLQWLQKLVmFRQFOXVLRQVRIODZlDFNQRZOHGJHG
FLWDWLRQV RPLWWHG VHH 1/5% Y 0DLQ 6WUHHW 7HUUDFH &DUH
&WU)GWK&LUm&RXUWVPXVW 7KHDVVHVVPHQWRIDVXSHUYLVRUjVFRQGXFWDQGZKHWKHULW
UHVSHFWWKHMXGJPHQWRIWKHDJHQF\HPSRZHUHGWRDSSO\WKH FRXOG UHDVRQDEO\ WHQG WR FRHUFH HPSOR\HHV LQ WKHLU
ODZµWRYDU\LQJIDFWSDWWHUQVjHYHQLIWKHLVVXHµZLWKQHDUO\ FKRLFH RI UHSUHVHQWDWLYH GHSHQGV RQ WKH DELOLW\ RI WKH
VXSHUYLVRUWRUHZDUGRUSXQLVKHPSOR\HHVDQGWKHH[WHQW
RI WKH VXSHUYLVRUjV SURXQLRQ FRQGXFW  &DO:HVWHUQ
7UDQVSRUW1/5%HQIjG)G
 WK&LU
+ROO\ )DUPV &RUS Y 1/5%  86   mHVWDEOLVKHV WKH
VWDQGDUG RI UHYLHZ QRZ ELQGLQJ RQ WKH FRXUWV RI DSSHDOV LQ UHYLHZLQJ WKH
1/5%jV LQWHUSUHWDWLRQ RI WKH UHOHYDQW SURYLVLRQV RI WKH 1/5$ 8QGHU (PSKDVLVDGGHG
WKLV VWDQGDUG RXU ILUVW WDVN LV WR GHWHUPLQH µZKHWKHU &RQJUHVV KDV GLUHFWO\
VSRNHQ WR WKH SUHFLVH TXHVWLRQV DW LVVXHj ,I &RQJUHVV KDV GRQH VR ZH
PXVW JLYH HIIHFW WR LWV H[SUHVVLRQ ,I QRW KRZHYHU µWKH TXHVWLRQ IRU WKH

FRXUW LV ZKHWKHU WKH DJHQF\jV DQVZHU LV EDVHG RQ D SHUPLVVLEOH 7KH KHDULQJ RIILFHU PLVWDNHQO\ LGHQWLILHG sDFNVRQ DV sRKQVRQ ZKRP
FRQVWUXFWLRQ RI WKH VWDWXWHjl 1/5% Y :HEFRU 3DFNDJLQJ ,QF  )G KH IRXQG ZDV QRW WKUHDWHQHG EXW ZDV PHUHO\ mHQFRXUDJHG >E\ 7KRPDV@
  WK &LU  TXRWDWLRQV FLWDWLRQ DQG IRRWQRWH RPLWWHG WR VXSSRUW WKH 3HWLWLRQHU 8QLRQl
 +DUERUVLGH+HDOWKFDUH 1RV 1RV +DUERUVLGH+HDOWKFDUH 
Y1/5% Y1/5%

GHFLGHGQRWWRMRLQ7KRPDVmEDGJHUHGlKHURQmMXVWDERXW HTXDO UHDVRQ >PLJKW@ EH UHVROYHG RQH ZD\ UDWKHU WKDQ
HYHU\lHQFRXQWHUDQGLQTXLUHGZK\VKHZDVQRWDWWHQGLQJWKH DQRWKHUjl+ROO\)DUPV&RUSY1/5%86
XQLRQPHHWLQJV3DYHOFKDNDOVRVDZ7KRPDVSRVWLQJXQLRQ TXRWHGLQ*UDQFDUH,QFY1/5%)G
VLJQV$OWKRXJK7KRPDVZDVKHUGLUHFWVXSHUYLVRURQO\RQH WK&LU0RRUHsFRQFXUULQJ
GD\3DYHOFKDNIHOWWKUHDWHQHGDQGLQWLPLGDWHGZKHQ7KRPDV
WROGKHURQWKDWGD\WKDWVKHZRXOGORVHKHUMRELIVKHGLGQRW $ SDUW\ ZKR VHHNV WR RYHUWXUQ WKH UHVXOWV RI D
YRWH IRU WKH XQLRQ EHFDXVH +DUERUVLGH ZRXOG ILUH KHU IRU UHSUHVHQWDWLRQHOHFWLRQEHDUVWKHEXUGHQRIGHPRQVWUDWLQJ
KDYLQJ VLJQHG WKH XQLRQ FDUG  3DYHOFKDN WHVWLILHG WKDW WKDWWKHHOHFWLRQZDVFRQGXFWHGXQIDLUO\7RPHHWWKLV
7KRPDV ZRXOG VHH KHU LQ WKH EUHDN URRP WKHUHDIWHU DQG EXUGHQ mWKH REMHFWLQJ SDUW\ PXVW GHPRQVWUDWH WKDW
7KRPDVZRXOGUHLWHUDWHWKDW3DYHOFKDNZRXOGORVHKHUMRELI µXQODZIXO FRQGXFW RFFXUUHG ZKLFK LQWHUIHUHG ZLWK
WKHXQLRQGLGQRWJHWLQ3DYHOFKDNPRUHRYHUILOHGDIRUPDO HPSOR\HHVjH[HUFLVHRIIUHHFKRLFHWRVXFKDQH[WHQWWKDW
JULHYDQFHDJDLQVW7KRPDVRQ6HSWHPEHUVWDWLQJWKDW LWPDWHULDOO\DIIHFWHGWKHUHVXOWRIWKHHOHFWLRQjl:KLOH
VKHFRQWLQXHGWRKDUDVVKHU WKH %RDUG VWULYHV WR DFKLHYH mODERUDWRU\ FRQGLWLRQVl
GXULQJUHSUHVHQWDWLRQHOHFWLRQVZHKDYHUHFRJQL]HGWKDW
7KHJULHYDQFHLQFOXGHGDUHIHUHQFHWRDQDGGLWLRQDOLQFLGHQW WKLV FDQ EH DQ HOXVLYH JRDO DQG VR mHOHFWLRQV DUH QRW
LQYROYLQJ7KRPDVRQ6HSWHPEHUDQGJHQHUDOO\UHLWHUDWHG DXWRPDWLFDOO\ YRLGHG ZKHQHYHU WKH\ IDOO VKRUW RI
WKH HSLVRGHV UHODWHG LQ KHU WHVWLPRQ\  7KH KHDULQJ RIILFHU SHUIHFWLRQl
FRQFOXGHGEDVHGRQ3DYHOFKDNjVHYLGHQFHDQGWKDWRIRWKHU
HPSOR\HHV7KRPDVZDVmLQYROYHGZLWKHQFRXUDJLQJHOLJLEOH 6W )UDQFLV +HDOWKFDUH &WU  )G DW  TXRWDWLRQV
YRWHUV WR YRWH IRU WKH >8QLRQ@l  2Q WKH RWKHU KDQG WKH RPLWWHG  +DUERUVLGH EHDUV WKH EXUGHQ RI SURYLQJ WKDW WKH
KHDULQJRIILFHUFRQFOXGHGWKDW3DYHOFKDNGLGQRWXVHWKHVDPH DOOHJHG FDPSDLJQ PLVFRQGXFW WHQGHG WR SUHYHQW D IDLU
ODQJXDJHDERXWKHU7KRPDVHQFRXQWHUVZKHQH[DPLQHGDQG HOHFWLRQFRQWUDU\WRWKH%RDUGjVGHWHUPLQDWLRQ
FURVVH[DPLQHGDQGLQKHUZULWWHQJULHYDQFH+HVHHPLQJO\
GLVFRXQWHG KHU FUHGLELOLW\ DQG WKH HIIHFW RI KHU RYHUDOO (YHUJUHHQ+HDOWKFDUH,QFY1/5%)GWK&LU
HYLGHQFHEDVHGXSRQWKLVDQDO\VLV:HWKLQNWKLVERWKXQIDLU  LV WKH FDVH PRVW DQDORJRXV WR WKLV GLVSXWH  +ROO\
DQGQREDVLVIRUTXHVWLRQLQJ3DYHOFKDNjVFUHGLELOLW\DIWHURXU )DUPV WKH 6XSUHPH &RXUW FDVH LQYROYHG D GLIIHUHQW
FDUHIXO UHDGLQJ RI KHU HQWLUH WHVWLPRQ\ LQFOXGLQJ KHU VLWXDWLRQ  FRQVWUXFWLRQ RI UHJXODWLRQV GHDOLQJ ZLWK
JULHYDQFH  7KLV LV SDUWLFXODUO\ VR LQ OLJKW RI WKH KHDULQJ mDJULFXOWXUDO ODERU HPSOR\HHVl +ROO\ )DUPV GLG QRW GHDO
RIILFHUjV SURSHU ILQGLQJ RI D QXPEHU RI LQFRQVLVWHQFLHV LQ ZLWK VXSHUYLVRU\ VWDWXV DQG ZKHWKHU VXSHUYLVRU\ DFWLRQV
7KRPDVjWHVWLPRQ\ GXULQJWKHHOHFWLRQSURFHVVRQEHKDOIRIWKH8QLRQSUHFOXGHD
IDLUHOHFWLRQXQGHU1/5$
9LRODWLRQRIULJKWVE\DVXSHUYLVRU
 7KH1/5$JLYHVHPSOR\HHVmWKHULJKWWRVHOIRUJDQL]DWLRQ
3DYHOFKDN DWWHQGHG IRXU
+DUERUVLGHjV WUDLQLQJ SURJUDP
\HDUV RI FROOHJH DQG ZHQW WKURXJK
WR IRUP MRLQ RU DVVLVW ODERU RUJDQL]DWLRQV WR EDUJDLQ
FROOHFWLYHO\WKURXJKUHSUHVHQWDWLYHVRIWKHLURZQFKRRVLQJ

7KH WHVWLPRQ\ RI 7KRPDV GLIIHUHG LQGHHG LQ LPSRUWDQW SDUWLFXODUV
DQGWRHQJDJHLQRWKHUFRQFHUWHGDFWLYLWLHVIRUWKHSXUSRVHRI
IURP WKDW RI &DUWHU WKH 8QLRQ UHSUHVHQWDWLYH DV ZHOO DV D QXPEHU RI
FROOHFWLYHEDUJDLQLQJRURWKHUPXWXDODLGRUSURWHFWLRQl
+DUERUVLGH HPSOR\HHV 86&†7KH$FWSURYLGHVWKDWDQXQIDLUODERUSUDFWLFH
 +DUERUVLGH+HDOWKFDUH 1RV 1RV +DUERUVLGH+HDOWKFDUH 
Y1/5% Y1/5%

LQFOXGHV DQ HPSOR\HUjV LQWHUIHULQJ ZLWK UHVWUDLQLQJ RU LQWKHHOHFWLRQWKHQXUVHVFXUWDLOHGPXFKRIWKHLUXQLRQ
FRHUFLQJHPSOR\HHVLQWKHH[HUFLVHRIWKHULJKWVJXDUDQWHHGLQ DFWLYLW\EXWZKHQ>RQH@ZDVDVNHGZKHWKHUKHURSLQLRQV
†  RU GRPLQDWLQJ RU LQWHUIHULQJ ZLWK WKH IRUPDWLRQ RU KDGFKDQJHGDERXWWKHXQLRQVKHUHSOLHGWKH\KDGQRW
DGPLQLVWUDWLRQ RI DQ\ ODERU RUJDQL]DWLRQ RU FRQWULEXWLQJ DQG VKH ZDV RYHUKHDUG PDNLQJ VHYHUDO SURXQLRQ
ILQDQFLDORURWKHUVXSSRUWWRLW6HH86&†D VWDWHPHQWVWRHPSOR\HHV
7KH 1/5$ SURYLGHV WKDW WKH WHUP mHPSOR\HHl mVKDOO QRW
LQFOXGHDQ\LQGLYLGXDOHPSOR\HGDVDVXSHUYLVRUl ,GDWFLWDWLRQRPLWWHG
86& †   m7KH WHUP µVXSHUYLVRUj PHDQV DQ\
LQGLYLGXDOKDYLQJDXWKRULW\LQWKHLQWHUHVWRIWKHHPSOR\HUWR (YHUJUHHQGLVWLQJXLVKHG:ULJKW0HPjO+RVSY1/5%
KLUH WUDQVIHU VXVSHQG OD\ RII UHFDOO SURPRWH GLVFKDUJH )G  WK &LU  UHOLHG RQ E\ WKH %RDUG EHFDXVH
DVVLJQUHZDUGRUGLVFLSOLQHRWKHUHPSOR\HHVRUUHVSRQVLEO\ WKUHHFKDUJHQXUVHVZKRDFWLYHO\FDPSDLJQHGIRUWKHXQLRQ
WRGLUHFWWKHPRUWRDGMXVWWKHLUJULHYDQFHVRUHIIHFWLYHO\WR GLGQRWGLVWULEXWHFDUGVRUEXWWRQVZLWKSUHVVXUHRUSHUVXDVLRQ
UHFRPPHQGVXFKDFWLRQLILQFRQQHFWLRQZLWKWKHIRUHJRLQJ DQGmQRQHUHTXLUHGHPSOR\HHVWRVLJQDXWKRUL]DWLRQFDUGVRU
WKHH[HUFLVHRIVXFKDXWKRULW\LVQRWRIDPHUHO\URXWLQHRU UHWXUQWKHFDUGVWRWKHP,QDGGLWLRQQRQHRIWKHWKUHHSOD\HG
FOHULFDOQDWXUHEXWUHTXLUHVWKHXVHRILQGHSHQGHQWMXGJPHQWl OHDGHUVKLSUROHVLQWKHHOHFWLRQFDPSDLJQl(YHUJUHHQ
86&†,QWKLVFDVHWKHDFWLRQVRIDVXSHUYLVRU )G DW   7KH KHDULQJ RIILFHU IRXQG WKDW 7KRPDV
RQEHKDOIRIWKH8QLRQUDWKHUWKDQKHUHPSOR\HUZHUHWKH HQFRXUDJHGXQLRQVXSSRUWGXULQJWKHFULWLFDOSHULRGDQGWKDW
EDVLVRIFRQWURYHUV\ VKHVSRNHZLWKHPSOR\HHVDERXWMREVHFXULW\ZLWKWKHXQLRQ
(PSOR\HUZLWQHVVHVWHVWLILHGWKDW7KRPDVFRQWLQXHGWRWU\WR
+DUERUVLGHFODLPHGWKDW5RELQ7KRPDVZDVDVXSHUYLVRU JHW WKHP WR ZHDU XQLRQ SLQV DWWHQG XQLRQ PHHWLQJV VLJQ
ZLWKLQ WKH PHDQLQJ RI †   7KH +HDULQJ RIILFHU XQLRQFDUGVDQGUHWXUQWKHPWRKHU7KH8QLRQRUJDQL]HU
DVVXPHGKHUVXSHUYLVRU\VWDWXVLQKLVRSLQLRQDQGWKH%RDUG &DUWHUZKRVHWHVWLPRQ\WKH+HDULQJRIILFHUFUHGLWHGWHVWLILHG
GRHVQRWGLVSXWHWKDWILQGLQJ7KH+HDULQJRIILFHUDQGWKH WKDW7KRPDVWXUQHGLQDOORIWKH/31XQLWFDUGVWKH8QLRQ
1/5% KRZHYHU PD\ WDNH LQWR DFFRXQW WKH GHJUHH RI KHU UHFHLYHG(YHUJUHHQDQG5LYHU:DONGRQRWUHTXLUHSURRIRI
VXSHUYLVRU\VWDWXV6HH*UDQFDUH,QFY1/5%)G mVRPH µKLQW RI UHWDOLDWLRQ RU UHZDUGjl DV GLG WKH KHDULQJ
  WK &LU  m7KH %RDUG KDV WKH EXUGHQ RI RIILFHU7KHXOWLPDWHWHVWLVZKHWKHUWKHFRQGXFWmUHDVRQDEO\
SURYLQJWKDWHPSOR\HHVDUHQRWVXSHUYLVRUVl WHQGHGWRKDYHVXFKDFRHUFLYHHIIHFWRQWKHHPSOR\HHVWKDWLW
ZDVOLNHO\WRLPSDLUWKHLUIUHHGRPVRIFKRLFHLQWKHHOHFWLRQl
+DUERUVLGH FRQWHQGV WKDW WKH KHDULQJ RIILFHU TXHVWLRQHG (YHUJUHHQ)GDWHPSKDVLVDGGHG
LPSRUWDQWHOHPHQWVRIWKHEDVLVRI7KRPDVjVXSHUYLVRU\VWDWXV
DQGWKDWWKH%RDUGHUUHGLQUHO\LQJRQWKH+HDULQJRIILFHUjV 7KH+HDULQJ
FRQFOXVLRQVLQWKLVUHJDUGLQVWHDGRIPDNLQJDQLQGHSHQGHQW
GHWHUPLQDWLRQm,QFRQFOXGLQJZKHWKHUVXEVWDQWLDOHYLGHQFH ,Q WKH SUHVHQW FDVH QXUVLQJ DVVLVWDQW /\QQH 3DYHOFKDN
VXSSRUWV WKH %RDUGjV GHFLVLRQ WKH FRXUW PXVW FRQVLGHU WKH WHVWLILHG DW WKH KHDULQJ WKDW FKDUJH QXUVH 5RELQ 7KRPDV
HQWLUHUHFRUG(YLGHQFHZKLFKWKH%RDUGKDVLJQRUHGEXWLV mDSSURDFKHG PH ZLWK D XQLRQ FDUG LQ WKH HPSOR\HH EUHDN
GLUHFWO\ UHOHYDQW FDQQRW EH GLVUHJDUGHGl  ,G FLWDWLRQ DUHDDQGDVNHGPHWRVLJQLWDQGWROGPHWKDW,QHHGHGWR
RPLWWHG FRPHWRDXQLRQPHHWLQJWKDW,KDGWRDWWHQGDOORIWKH
XQLRQPHHWLQJVVRWKDW,FRXOGNHHSXSZLWKZKDWZDVJRLQJ
WR EH JRLQJ RQl DQG DIWHU VKH DWWHQGHG WKH PHHWLQJ DQG
 +DUERUVLGH+HDOWKFDUH 1RV 1RV +DUERUVLGH+HDOWKFDUH 
Y1/5% Y1/5%

FRQVWLWXWHREMHFWLRQDEOHFRQGXFWl.X[0IJ&RY1/5% 2EMHFWLRQDEOH&RQGXFW
)GWKFLU(YHUJUHHQKHOGWKDWWKH
%RDUG HUUHG LQ FRQFOXGLQJ WKDW WKH VXSHUYLVRU\ QXUVHV KDG 7KH SDUWLFLSDWLRQ RI D VXSHUYLVRU LQ WKH FDPSDLJQ
PHUHO\H[SUHVVHGWKHLURSLQLRQVUHJDUGLQJWKHXQLRQEHFDXVH SUHFHGLQJ D XQLRQ HOHFWLRQ PD\ XQGHUPLQH WKH
DVWKLVFRXUWQRWHGWKHVXSHUYLVRUVmFDPSDLJQHGDFWLYHO\RQ HPSOR\HHVj IUHHGRP RI FKRLFH VR PXFK VR WKDW WKH
EHKDOI RI WKH 8QLRQ  7KH\ ZRUH XQLRQ EXWWRQV WR ZRUN HOHFWLRQPXVWEHVHWDVLGH+RZHYHUDQHOHFWLRQLVQRW
DWWHQGHG XQLRQ PHHWLQJV KDQGHG RXW XQLRQ EXWWRQV DXWRPDWLFDOO\LQYDOLGDWHGZKHQWKHUHKDVEHHQSURXQLRQ
GLVWULEXWHGDXWKRUL]DWLRQFDUGVDQGVSRNHDERXWWKH8QLRQDW DFWLYLW\E\DVXSHUYLVRU$QHOHFWLRQZLOOEHLQYDOLGDWHG
XQLRQPHHWLQJVl(YHUJUHHQ)GDW7KRPDV ZKHQWKHSHWLWLRQHUGHPRQVWUDWHVWKDWmWKHVXSHUYLVRUjV
SDUWLFLSDWHG LQ DOO RI WKHVH DFWLYLWLHV EXW WKH (YHUJUHHQ FRQGXFWUHDVRQDEO\WHQGHGWRKDYHVXFKDFRHUFLYHHIIHFW
VXSHUYLVRUV DOVR FRQWDFWHG HPSOR\HHV DW KRPH  7KH RQ WKH HPSOR\HHV WKDW LW ZDV OLNHO\ WR LPSDLU WKHLU
VXSHUYLVRUVLQ(YHUJUHHQDOVRVSRNHRIWHQDERXWWKHGLVSOD\ IUHHGRPV RI FKRLFH LQ WKH HOHFWLRQl  7KH SDUW\
RIFDPSDLJQEXWWRQVVRWKDWDQXUVHDLGHWHVWLILHGVKHGLGQRW FKDOOHQJLQJ WKH HOHFWLRQ QHHG QRW LQWURGXFH SURRI RI
ZDQWWRZHDUDEXWWRQEXWGLGVRWRmJHWWKHPRIIP\EDFNl DFWXDOFRHUFLRQ
$VXSHUYLVRUWROGDQXUVHDLGHWRZHDUWKHEXWWRQDQGmKHOS
ERRVWWKHXQLRQlDQGRQWKHGD\RIWKHHOHFWLRQDVNHGDQRWKHU (YHUJUHHQ+HDOWKFDUH,QFY1/5%)GWK
QXUVH DLGH LI VKH KDG YRWHG IRU WKH 8QLRQ EHFDXVH LI VKH &LUHPSKDVLVDGGHGFLWDWLRQVDQGTXRWDWLRQRPLWWHG
ZRXOGYRWHIRUWKHXQLRQWKH\ZRXOGKDYHPRUHEHQHILWV7KH :KLOHWKHKHDULQJRIILFHUDQG%RDUGGLGQRWDFWXDOO\VWDWHWKDW
DLGHWHVWLILHGWKDWVKHmZHQWDORQJZLWKWKHP>EHFDXVHWKH\ SURRIRIDFWXDOFRHUFLRQZDVUHTXLUHG+DUERUVLGHFRQWHQGV
ZHUH@P\FRZRUNHUVDQG,ZDQWHGWREHDEOHWRZRUN WKDW ERWK HUUHG E\ WDNLQJ LQWR DFFRXQW mWKDW WKH FRQGXFW DW
WKHUHl,GDW,QWKHSUHVHQWFDVHZLWQHVVHVWHVWLILHGWKDW LVVXHµGLGQRWKDYHDFRHUFLYHHIIHFWjDQGWKDWWKHUHZDVQR
WKH\ZHUHFRQWDFWHGE\7KRPDVEXWQHYHUWKHOHVVUHIXVHGWR µDFFRPSDQ\LQJFRHUFLRQjl
ZHDUWKHSLQRUDWWHQGWKHXQLRQPHHWLQJV(YHUJUHHQIRXQG
VXSSRUWLQ1/5%Y5LYHU:DON0DQRU,QF1R  7R GHWHUPLQH ZKHWKHU D VXSHUYLVRUjV FRQGXFW
 :/  WK &LU 2FW   XQSXEOLVKHG UHDVRQDEO\WHQGHGWRKDYHVXFKDFRHUFLYHHIIHFWRQWKH
ZKLFKKHOGWKDWDQHOHFWLRQZDVLQYDOLGDWHGE\VXSHUYLVRU\ HPSOR\HHVWKDWLWZDVOLNHO\WRLPSDLUWKHLUIUHHGRPVRI
QXUVHVDWDXQLRQPHHWLQJHQFRXUDJLQJHPSOR\HHVWRRUJDQL]H FKRLFHLQWKHHOHFWLRQWKH%RDUGDQGWKHFLUFXLWFRXUWV
DQHIIRUWWRVXSSRUWWKHXQLRQDWWHQGLQJXQLRQPHHWLQJVDQG KDYH FRQVLGHUHG WKH IROORZLQJ WZR IDFWRUV   WKH
GLVWULEXWLQJDXWKRUL]DWLRQFDUGVYRLFLQJVXSSRUWIRUWKHXQLRQ GHJUHHRIVXSHUYLVRU\DXWKRULW\SRVVHVVHGE\WKRVHZKR
GLUHFWO\ WR HPSOR\HHV VKH VXSHUYLVHG DQG VROLFLWLQJ XQLRQ HQJDJHG LQ WKH SURXQLRQ DFWLYLW\ DQG  WKH H[WHQW
DXWKRUL]DWLRQFDUGVIURPVHYHUDOHPSOR\HHV6HH(YHUJUHHQ QDWXUHDQGRSHQQHVVRIWKHSURXQLRQDFWLYLW\
)GDW
(YHUJUHHQ)GDWHPSKDVLVDGGHG
)ROORZLQJ WKH ILOLQJ RI WKH HOHFWLRQ SHWLWLRQ WKH
VXSHUYLVRUVFRQWLQXHGWRDWWHQGXQLRQPHHWLQJVDQGXUJHG 5HFHQWO\WKH%RDUGRYHUWXUQHGDIRUW\WKUHH\HDUSUHFHGHQW
HPSOR\HHVWRmVWLFNWRJHWKHUDQGYRWH\HVIRUWKHXQLRQ DQG KHOG WKDW D XQLRQjV XVH RI D VWDWXWRU\ VXSHUYLVRU DV DQ
EHFDXVHZHZLOOJHWEHWWHUZDJHVEHWWHUMREVHFXULW\DQG HOHFWLRQ REVHUYHU FRQVWLWXWHV REMHFWLRQDEOH FRQGXFW  6HH
EHWWHU EHQHILWVl  $IWHU WKH 1/5% UXOHG WKDW WKH IRXU )DPLO\6HUY$JHQF\1/5%1R3DUDJRQ
QXUVHVZHUHVXSHUYLVRUVDQGH[FOXGHGWKHPIURPYRWLQJ 5XEEHU&R1/5%3ODQW&LW\:HOGLQJ
7DQN &R  1/5%     7KHVH UHFHQW
 +DUERUVLGH+HDOWKFDUH 1RV 1RV +DUERUVLGH+HDOWKFDUH 
Y1/5% Y1/5%

GHFLVLRQV RI WKH %RDUG HPSKDVL]H WKDW WKH DFWLRQV RI D WHUPLQDWLRQ RI HPSOR\HHV  7KLV LV PDGH FOHDU E\ MRE
VXSHUYLVRURQEHKDOIRIWKHXQLRQDUHYLHZHGVHULRXVO\E\WKH GHVFULSWLRQV8QLRQRUJDQL]HU+RSH&DUWHUZKRVWLSXODWHG
%RDUGZLWKUHVSHFWWRDWDLQWLQJRIWKHHOHFWLRQSURFHVV /31VDVVXSHUYLVRUVDQGWKHUHIRUHRXWRIWKHXQLWWHVWLILHGVKH
GLG VR WR DYRLG D KHDULQJ RQ WKLV LVVXH EXW 'LUHFWRU RI
'HJUHHRIVXSHUYLVRU\DXWKRULW\ 1XUVLQJ 0RJXV WHVWLILHG WKDW 7KRPDV ZDV LQGHHG D
VXSHUYLVRU  1LFROH 'HQQLV 5HJLRQDO +XPDQ 5HVRXUFHV
(YHUJUHHQ FRQFOXGHG WKDW WKH QXUVHV LQYROYHG KDG 'LUHFWRUIRU+DUERUVLGHWHVWLILHGDWWKHKHDULQJWKDW7KRPDV
VLJQLILFDQWVXSHUYLVRU\DXWKRULW\ZKLFKZRXOGOLNHO\KDYHD ZDV LQ DWWHQGDQFH DV UHTXLUHG DW +DUERUVLGHjV PHHWLQJ IRU
FRHUFLYHHIIHFWRQHPSOR\HHV6HH(YHUJUHHQ)GDW VXSHUYLVRUVDWZKLFKWKH\ZHUHWROGQRWWRLQYROYHWKHPVHOYHV
  7KH %RDUG LQ (YHUJUHHQ IRXQG WKDW WKH OLFHQVHG DQG RQEHKDOIRIWKH8QLRQ8QLWPDQDJHU.LUNZRRGVDLG7KRPDV
UHJLVWHUHGQXUVHVZHUHVXSHUYLVRUVEXWWKLVFRXUWFRQFOXGHG ZDVSUHVHQWDWDPLG6HSWHPEHUPHHWLQJRIVXSHUYLVRUVZKHUH
WKHKHDULQJRIILFHUIDLOHGWRFRQVLGHUWKHH[WHQWRIWKHQXUVHVj WKLVGLUHFWLRQZDVUHLWHUDWHG7KHKHDULQJRIILFHUQRWHGWKDW
VXSHUYLVRU\SRZHUZKHQGHWHUPLQLQJZKHWKHUWKHLUFRQGXFW 7KRPDV KDG OHVV VXSHUYLVRU\ DXWKRULW\ WKDQ LQ RWKHU FDVHV
LQYDOLGDWHGWKHHOHFWLRQ7KHKHDULQJRIILFHUHUUHGLQQRWLQJ EHFDXVHRIKHUODFNRIGLUHFWDXWKRULW\RYHUWKH+DUERUVLGH
HPSOR\HHZLWQHVVHV2QHVXFKHPSOR\HH3DYHOFKDNZRUNHG
 WKH QXUVHVj VWDWXV DV VXSHUYLVRU\ ZDV XQGHFLGHG IRU7KRPDVRQO\RQHGD\EXWVKHWHVWLILHGWKDW7KRPDVKDG
GXULQJWKHFDPSDLJQLQJ(YHUJUHHQWUHDWHGWKHQXUVHV WKHDELOLW\WRZULWHKHUXSVHQGKHUKRPHDQGXOWLPDWHO\KDYH
DVXQLWHPSOR\HHVE\DOORZLQJWKHPWRFDPSDLJQDQG KHU WHUPLQDWHG  1XUVLQJ DVVLVWDQW 7K\PH DQ HPSOR\HH
 WKH HPSOR\HHV GLG QRW EHOLHYH WKH QXUVHV ZHUH WHVWLILHGWKDW7KRPDVRFFDVLRQDOO\ZDVKHUVXSHUYLVRUDQGWKDW
VXSHUYLVRUVEHFDXVHWKH\FDPSDLJQHGVLGHE\VLGH1RQH VKHGLUHFWHGKHUDQGKDGDXWKRULW\WRGLVFLSOLQHKHU1XUVLQJ
RIWKHVHUHDVRQVKRZHYHUUHQGHUWKHVXSHUYLVRU\VWDWXV DVVLVWDQW )UDQN sDFNVRQ WHVWLILHG WKDW 7KRPDV ZDV GLUHFWO\
RIWKHQXUVHVLQFRQVHTXHQWLDO RYHUKLPRQRQO\RQHRFFDVLRQEXWWKDWVKHZDVDVXSHUYLVRU
EHFDXVHVKHFRXOGmZULWH\RXXSDQGPDNH\RXORVH\RXUMREl
,GHPSKDVLVDGGHG DQGVKHJDYHKLPVRPHGLUHFWLRQV
,QWKHSUHVHQWFDVHWKH%RDUGDGRSWHGWKHKHDULQJRIILFHUjV  ([WHQW1DWXUHDQG2SHQQHVVRI3URXQLRQ$FWLYLW\E\
GHFLVLRQLQZKLFKKHDVVXPHGZLWKRXWDFWXDOO\GHFLGLQJWKDW 7KRPDV
7KRPDVZDVDVXSHUYLVRU7KLVIDFWZDVVWLSXODWHG7KRPDV
KDG DXWKRULW\ WR H[HUFLVH LQGHSHQGHQW MXGJPHQW WR PDNH 7KHKHDULQJRIILFHUUHOLHGRQ%RDUGFDVHVZKHUHWKH%RDUG
GHFLVLRQV LQ FULVLV VLWXDWLRQV DQG WR GLUHFW DQG GLVFLSOLQH KHOGWKDWVXSHUYLVRUVjVWDWHPHQWVZHUHVLPSO\H[SUHVVLRQVRI
HPSOR\HHV7KHGLUHFWRURIQXUVLQJWHVWLILHGWRWKHQDWXUHRI WKHLUSHUVRQDORSLQLRQVDQGZHUHQRWLQKHUHQWO\FRHUFLYH,Q
FKDUJHQXUVHVjVXSHUYLVRU\UHVSRQVLELOLWLHVVWDWLQJWKDWWKH\ RQHFDVHWKHVXSHUYLVRUVVROLFLWHGDXWKRUL]DWLRQFDUGVIRUWKH
ZHUHWKHLPPHGLDWHVXSHUYLVRUVRIWKHQXUVLQJDVVLVWDQWVDQG XQLRQDQGXUJHGHOLJLEOHYRWHUVWRVXSSRUWWKHXQLRQDWXQLRQ
KDGWKHDXWKRULW\WRLQLWLDWHGLVFLSOLQDU\DFWLRQ,QDGGLWLRQ PHHWLQJVDQGWROGWKHPWKHXQLRQZRXOGSURWHFWWKHLUMREV
FKDUJHQXUVHVFRXOGGLUHFWQXUVHVDVVLJQQXUVHVjVFKHGXOHV EXWWKH%RDUGIRXQGWKDWWKHVXSHUYLVRUVGLGQRWPDNHWKUHDWV
PDNH LQGHSHQGHQW MXGJPHQWV LQWHUYLHZ DQG UHFRPPHQG RI UHWDOLDWLRQ RU UHZDUG DQG WKHUHIRUH WKH FRPPHQWV ZHUH
SURVSHFWLYHHPSOR\HHVJLYHWKHSULQFLSDOLQSXWRQQXUVLQJ LQQRFXRXV H[SUHVVLRQV RI SHUVRQDO RSLQLRQ 6HH 3DFLILF
DVVLVWDQWVjHYDOXDWLRQVZKLFKDIIHFWUHWHQWLRQDQGSD\UDLVHV 3K\VLFLDQV6HUYV,QF1/5%:HKDYH
LPPHGLDWHO\ VXVSHQG DQG VHQG KRPH HPSOR\HHV UHTXHVW DOVRVWDWHGWKDWm>D@QRQFRHUFLYHSUHHOHFWLRQSROOGRHVQRW
HPSOR\HHV WR VWD\ RYHU DQG UHFRPPHQG VXVSHQVLRQ DQG