Huey v. Stine

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

s26(3+ 7 +8(< ;
3ODLQWLII$SSHOODQW 

 1R
Y 
!

'$1,(/ 67,1(&RUUHFWLRQDO 
2IILFHU,RQLD0D[LPXP 
&RUUHFWLRQDO)DFLOLW\ 
'HIHQGDQW$SSHOOHH 

1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH:HVWHUQ'LVWULFWRI0LFKLJDQDW*UDQG5DSLGV
1Rn*RUGRQs4XLVW'LVWULFWsXGJH
6XEPLWWHG$XJXVW
'HFLGHGDQG)LOHG2FWREHU
%HIRUH1(/6216,/(5DQG%$7&+(/'(5&LUFXLW
sXGJHV
BBBBBBBBBBBBBBBBB
&2816(/
21%5,()$3HWHU*RYRUFKLQ$66,67$17$77251(<
*(1(5$/ &255(&7,216 ',9,6,21 /DQVLQJ
0LFKLJDQIRU$SSHOOHHsRVHSK7+XH\,RQLD0LFKLJDQ
SURVH


 +XH\Y6WLQH 1R

BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
$/,&( 0 %$7&+(/'(5 &LUFXLW sXGJH  sRVHSK 7
+XH\DSULVRQHULQWKH0LFKLJDQ'HSDUWPHQWRI&RUUHFWLRQV
DSSHDOV IURP D GLVWULFW FRXUW MXGJPHQW GLVPLVVLQJ KLV 
86& †  FODLP DV EDUUHG E\ WKH GRFWULQH RI +HFN Y
+XPSKUH\86)RUWKHUHDVRQVVHWIRUWK
EHORZZHDIILUPWKHMXGJPHQWRIWKHGLVWULFWFRXUW
,
2Q)HEUXDU\sRVHSK7+XH\DQLQPDWHDWWKH
,RQLD 0D[LPXP &RUUHFWLRQDO )DFLOLW\ UHFHLYHG D PDMRU
PLVFRQGXFWWLFNHW7KHWLFNHWDOOHJHGWKDW+XH\KDGDVVDXOWHG
FRUUHFWLRQVRIILFHU'DQLHO6WLQHLQDQDWWHPSWWRJDLQFRQWURO
RIDKDQGFXIINH\7KHPDWWHUZDVVHWIRUDQDGPLQLVWUDWLYH
KHDULQJRQ0DUFK
$WWKHKHDULQJ+XH\FODLPHGWKDWRIILFHU6WLQHKDGLQIDFW
DVVDXOWHGKLP$FFRUGLQJWR+XH\KHDQG6WLQHJRWLQWRDQ
DUJXPHQWDV6WLQHZDVHVFRUWLQJKLPIURPWKHVKRZHUWRKLV
FHOO7KHPDWWHUHVFDODWHGZKHQ+XH\ZDVFDXJKWEHWZHHQ
WKHFHOOGRRUDQGWKHGRRUIUDPHDVKHDWWHPSWHGWRHQWHUWKH
FHOO  2QFH LQVLGH WKH FHOO +XH\ PRYHG KLV KDQGV WR WKH
GRRUjV IRRG VORW VR WKDW 6WLQH FRXOG UHPRYH KLV KDQGFXIIV
6WLQHDOOHJHGO\JUDEEHG+XH\jVULJKWKDQGSXOOHGLWWKURXJK
WKHVORWDQGEHJDQWZLVWLQJ+XH\jVDUPVD\LQJWRDQRWKHU
RIILFHUSUHVHQWDWWKHVFHQHm,jOOEHQGKLVILQJHUVEDFN/HWjV
VHHLIKHFDQWDNHWKDWl:KHQRWKHURIILFHUVDSSURDFKHGWKH
FHOO6WLQHUHOHDVHGKLP6WLQHWKHQILOHGDIDOVHPLVFRQGXFW
UHSRUW  +XH\ PDLQWDLQV WKDW DV D UHVXOW RI WKH LQFLGHQW KH
VXIIHUHG DEUDVLRQV WKDW SURGXFHG VFDUULQJ DQG UHVWULFWHG
PRYHPHQWLQKLVZULVWIRUIRXUWRVL[GD\V
7KH KHDULQJ RIILFHU GLG QRW FUHGLW +XH\jV DFFRXQW  7KH
KHDULQJRIILFHUQRWHGWKDWKDG6WLQHDWWHPSWHGWREUHDN+XH\jV
DUPDV+XH\FODLPHG6WLQHSUREDEO\ZRXOGKDYHVXFFHHGHG
7KH KHDULQJ RIILFHU IXUWKHU UHPDUNHG WKDW D PHGLFDO UHSRUW
1R +XH\Y6WLQH 

PDGHDIWHUWKHLQFLGHQWZDVLQFRQVLVWHQWZLWK+XH\jVVWRU\
7KHUHSRUWVKRZHGWKDWWKHPLQRUDEUDVLRQVRQKLVDUPZHUH
FRQVLVWHQWZLWKLWVKDYLQJEHHQSXOOHGEDFNDQGIRUWKWKURXJK
WKHIRRGVORWWKHKHDULQJRIILFHUFRQFOXGHGWKDWWKLVZDVWKH
OLNHO\RXWFRPHRI+XH\jVDWWHPSWLQJWRJDLQFRQWURORIWKH
KDQGFXIINH\$FFRUGLQJO\WKHKHDULQJRIILFHUIRXQG+XH\
JXLOW\RIDVVDXOWDQGEDWWHU\+XH\ZDVVHQWHQFHGWRWKLUW\
GD\VRIGHWHQWLRQDQGWKLUW\GD\VjORVVRISULYLOHJHV
+XH\ XQVXFFHVVIXOO\ PRYHG IRU UHKHDULQJ RQ WKH PDWWHU
+HDOVRLQLWLDWHGDWKUHHVWHSJULHYDQFHSURFHVVGLVSXWLQJWKH
IDFWXDO EDVLV RI WKH PDMRU PLVFRQGXFW WLFNHW  +XH\jV
JULHYDQFHZDVGHQLHGDWWKHILQDOVWDJHRIWKHSURFHVVRQ$SULO
2QsXQH+XH\ILOHGLQWKHGLVWULFWFRXUW
D86&†DFWLRQDOOHJLQJWKDWEHFDXVHKHKDGQRW
DVVDXOWHGRIILFHU6WLQH6WLQHjVDFWLRQVZHUHFUXHODQGXQXVXDO
SXQLVKPHQW LQ YLRODWLRQ RI WKH (LJKWK $PHQGPHQW  7KH
FRPSODLQW GHPDQGHG  LQ FRPSHQVDWRU\ GDPDJHV
 LQ SXQLWLYH GDPDJHV DQG H[SXQJHPHQW RI WKH
GLVFLSOLQDU\ LQIUDFWLRQ IURP KLV SULVRQ UHFRUG  +XH\
VXEVHTXHQWO\DPHQGHGWKHFRPSODLQWWRRPLWWKHGHPDQGIRU
DQRUGHURIH[SXQFWLRQ6WLQHPRYHGIRUVXPPDU\MXGJPHQW
DQG WKH GLVWULFW FRXUW GLVPLVVHG +XH\jV FODLP DV EDUUHG E\
+HFNY+XPSKUH\+XH\WLPHO\DSSHDOVSURVH
,,
$GHFLVLRQE\DGLVWULFWFRXUWWRGLVPLVVZLWKRXWSUHMXGLFH
ZLOO  QRW EH GLVWXUEHG H[FHSW IRU DQ DEXVH RI GLVFUHWLRQ
&UDLJKHDGY()+XWWRQ,QF)GWK&LU
$FRXUWZLOOILQGDQDEXVHRIGLVFUHWLRQZKHUHLWKDV
D GHILQLWH DQG ILUP FRQYLFWLRQ WKDW WKH FRXUW EHORZ
FRPPLWWHG D FOHDU HUURU RI MXGJPHQW LQ WKH FRQFOXVLRQ LW
UHDFKHGXSRQDZHLJKLQJRIWKHUHOHYDQWIDFWRUV%DODQLY
,16)GWK&LUFLWDWLRQVRPLWWHG
$FRXUWDOVRDEXVHVLWVGLVFUHWLRQZKHUHLWLPSURSHUO\DSSOLHV
WKHODZRUXVHVDQHUURQHRXVOHJDOVWDQGDUG*DVWRQ'UXJV
,QFY0HWURSROLWDQ/LIH,QV&R)GWK&LU
 TXRWLQJ &KULVWLDQ 6FKPLGW %UHZLQJ &R Y *
 +XH\Y6WLQH 1R 1R +XH\Y6WLQH 

+HLOHPDQ%UHZLQJ&R)GWK&LUFHUW ,,,
GLVPLVVHG86
)RUWKHIRUHJRLQJUHDVRQVWKHMXGJPHQWRIWKHGLVWULFWFRXUW
$ LV$)),50('
,Q+HFNY+XPSKUH\WKH6XSUHPH&RXUWKHOGWKDW
LQ RUGHU WR UHFRYHU GDPDJHV IRU DOOHJHGO\
XQFRQVWLWXWLRQDOFRQYLFWLRQRULPSULVRQPHQWRUIRURWKHU
KDUP FDXVHG E\ DFWLRQV ZKRVH XQODZIXOQHVV ZRXOG
UHQGHUDFRQYLFWLRQRUVHQWHQFHLQYDOLGD†SODLQWLII
PXVW SURYH WKDW WKH FRQYLFWLRQ RU VHQWHQFH KDV EHHQ
UHYHUVHGRQGLUHFWDSSHDOH[SXQJHGE\H[HFXWLYHRUGHU
GHFODUHGLQYDOLGE\DVWDWHWULEXQDODXWKRUL]HGWRPDNH
VXFKGHWHUPLQDWLRQRUFDOOHGLQWRTXHVWLRQE\DIHGHUDO
FRXUWjVLVVXDQFHRIDZULWRIKDEHDVFRUSXV86&
†
+HFN  86     7KLV mIDYRUDEOH
WHUPLQDWLRQlUHTXLUHPHQWZDVH[WHQGHGWRSULVRQHUDOOHJDWLRQV
RI GXH SURFHVV YLRODWLRQV LQ SULVRQ GLVFLSOLQH KHDULQJV
UHVXOWLQJLQGHSULYDWLRQRIJRRGWLPHFUHGLWVLQ(GZDUGVY
%DOLVRN  86     7KLV FRXUW KDV LQ
XQSXEOLVKHG RSLQLRQV DSSOLHG WKH +HFN(GZDUGV GRFWULQH
JHQHUDOO\ WR SUHYHQW D SULVRQHU IRXQG JXLOW\ LQ D SULVRQ
GLVFLSOLQDU\KHDULQJIURPXVLQJ†WRFROODWHUDOO\DWWDFN
WKH KHDULQJjV YDOLGLW\  6HH HJ 0HWFDOI Y 9LHWD 1R
  :/  WK &LU $XJXVW  
)RVWHU%H\Y'XQFDQ1R:/WK
&LU0DUFK
+XH\FRQWHQGVWKDWVLQFHKHKDVORQJVLQFHVHUYHGKLVWKLUW\
GD\Vj GHWHQWLRQ +HFN VKRXOG QRW EH LQWHUSRVHG WR EDU KLV
FODLP  7KH WKUXVW RI WKLV DUJXPHQW VHHPV WR EH WKDW
DSSOLFDWLRQ RI WKH +HFN GRFWULQH ZRXOG GHSULYH +XH\ RI D
IHGHUDOIRUXPIRUKLV(LJKWK$PHQGPHQWFODLP6HHsRXUGDQ
YsDEH)GWK&LUVWDWLQJWKDWSURVH
SOHDGLQJV DUH WR EH FRQVWUXHG OLEHUDOO\  %HFDXVH KH LV QR
ORQJHU mLQ FXVWRG\l IRU KLV GLVFLSOLQDU\ LQIUDFWLRQ +XH\
FDQQRWVHHNDZULWRIKDEHDVFRUSXVFKDOOHQJLQJWKHOHJDOLW\RI
KLVGHWHQWLRQ6HH&DUDIDVY/D9DOOHH86
 +XH\Y6WLQH 1R 1R +XH\Y6WLQH 

HJ1HOVRQYsDVKXUHN)GG&LU  VWDWLQJ WKDW >W@KH IHGHUDO KDEHDV FRUSXV VWDWXWH
7KLVFRXUWjVXQSXEOLVKHGSURQRXQFHPHQWVRQWKHDSSOLFDELOLW\ UHTXLUHV WKDW WKH  DSSOLFDQW PXVW EH
LQ FXVWRG\
 ZKHQ WKH
RI WKH mIDYRUDEOH WHUPLQDWLRQl UHTXLUHPHQW WR (LJKWK DSSOLFDWLRQIRUKDEHDVFRUSXVLVILOHGVHHDOVR3UHLVHUY
$PHQGPHQW FODLPV KDYH WDNHQ VRPH WXUQV  ,Q %DLOH\ Y 5RGULJXH]86m:KHQDSULVRQHULVSXW
0F&R\ZHQRWHGWKDWmZHKDYHQHYHUDSSOLHG(GZDUGVWRDQ XQGHU DGGLWLRQDO DQG XQFRQVWLWXWLRQDO UHVWUDLQWV GXULQJ KLV
(LJKWK$PHQGPHQWFODLPl%DLOH\1R:/ ODZIXOFXVWRG\LWLVDUJXDEOHWKDWKDEHDVFRUSXVZLOOOLHWR
DW
WK&LU6HSWRQO\WRDSSO\WKDW UHPRYH WKH UHVWUDLQWV PDNLQJ WKH FXVWRG\ LOOHJDOl  $QG
FDVHWRDQ(LJKWK$PHQGPHQWFODLPWKDWDFRUUHFWLRQVRIILFHU EHFDXVH KH FDQQRW REWDLQ D IDYRUDEOH UHVROXWLRQ RI KLV
KDGLVVXHGDIDOVHPLVFRQGXFWUHSRUWLQ5LOH\DZHHNODWHU GLVFLSOLQDU\ VDQFWLRQ YLD KDEHDV KLV †  FODLP LV QRQ
6HH5LOH\:/DW
%XWLQDQRWKHUIDOVH FRJQL]DEOH6HH6FKLOOLQJY:KLWH)GWK
PLVFRQGXFW UHSRUW FDVH 1HOVRQ Y 6KDUS ZH KHOG WKDW &LU  m(YHQ D SULVRQHU ZKR KDV IXOO\ H[KDXVWHG
+HFN(GZDUGV VKRXOG QRW EDU WKH FODLP  7KHUH WKH DYDLODEOHVWDWHUHPHGLHVKDVQRFDXVHRIDFWLRQXQGHU†
FRUUHFWLRQVRIILFHUDOOHJHGO\VODPPHGDIRRGVORWGRRURQWKH XQOHVV DQG XQWLO WKH FRQYLFWLRQ RU VHQWHQFH LV UHYHUVHG
SODLQWLIIjV KDQG DQG OHDQHG RQ LW EHIRUH LVVXLQJ WKH IDOVH H[SXQJHGLQYDOLGDWHGRULPSXJQHGE\WKHJUDQWRIDZULWRI
UHSRUWm>,@WLVQRWEH\RQGWKHUHDOPRISRVVLELOLW\WKDW6KDUS KDEHDVFRUSXVl7KXVWKHGRRUVRIWKHIHGHUDOFRXUWVDUH
FDQSURYHWKDW1HOVRQYLRODWHGKLV(LJKWK$PHQGPHQWULJKWV VKXWDJDLQVW+XH\
E\VODPPLQJWKHIRRGVORWGRRURQKLVKDQGLQVXFKDPDQQHU
DV WR LQIOLFW XQQHFHVVDU\ SDLQ LQ D ZDQWRQ PDQQHU QRW 7KLVDUJXPHQWLVQRWHQWLUHO\ZLWKRXWIRUFH,Q6SHQFHUY
MXVWLILHGE\SULVRQQHFHVVLW\RUWKHGHJUHHRIYLRODWLRQlZH .HPQD  86   WKH 6XSUHPH &RXUW FRQVLGHUHG
VDLG1HOVRQ1R:/DW
WK&LU ZKHWKHU WKH H[SLUDWLRQ RI D KDEHDV SHWLWLRQHUjV SULVRQ
sXO\ VHQWHQFHPRRWHGKLVFODLPWKDWSURFHGXUHVXVHGWRUHYRNHKLV
SDUROHYLRODWHGGXHSURFHVV7KH&RXUWKHOGWKDWWKHKDEHDV
:HWKLQNWKHUXOHWKDWFDQEHWDNHQIURPWKHVHFDVHVLVWKDW SHWLWLRQZDVPRRWEHFDXVHRQFHWKHSHWLWLRQHUjVVHQWHQFHKDG
+HFNJHQHUDOO\GRHVQRWEDU(LJKWK$PHQGPHQWFODLPVEXW WHUPLQDWHG WKH SHWLWLRQ QR ORQJHU SUHVHQWHG D FDVH RU
LI WKH FODLP LV IRXQGHG VROHO\ RQ DQ DOOHJDWLRQ WKDW D FRQWURYHUV\VLQFHSHWLWLRQHUZDVQRWDEOHWRVKRZFRQWLQXLQJ
FRUUHFWLRQVRIILFHUIDOVLILHGDPLVFRQGXFWUHSRUWWKHQ+HFN mFROODWHUDO FRQVHTXHQFHVl RI WKH SDUROH UHYRFDWLRQ  6HH
DSSOLHV  6XFK LV WKH FDVH KHUH  +XH\ GRHV QRW FODLP WKDW 6SHQFHU  86 DW   7KH SHWLWLRQHU DUJXHG DPRQJ
6WLQHjVDFWLRQVZHUHDQH[FHVVLYHUHVSRQVHWRKLVDWWHPSWWR QXPHURXVRWKHUFRQWHQWLRQVWKDWKLVKDEHDVSHWLWLRQFRXOGQRW
JDLQFRQWURORIWKHKDQGFXIINH\LQFRQWUDVWWR1HOVRQZKHUH EHPRRWEHFDXVHLILWZHUHKHZRXOGEHEDUUHGIURPSXUVXLQJ
WKHEDVLVRIWKHSODLQWLIIjVFODLPLVXQFOHDU5DWKHU+XH\ D†DFWLRQVLQFH+HFNUHTXLUHVWKDWLQRUGHUWRSXUVXHD
FODLPV WKDW 6WLQHjV DUPWZLVWLQJ ZDV FUXHO DQG XQXVXDO †DFWLRQKHPXVWHVWDEOLVKWKDWKLVSDUROHKDGQRWEHHQ
SXQLVKPHQWEHFDXVH+XH\KDGGRQHQRWKLQJZURQJDQGKH YDOLGO\UHYRNHGsXVWLFH6FDOLDZULWLQJIRUWKH&RXUWYLHZHG
WKHUHIRUH VKRXOG QRW KDYH EHHQ SXQLVKHG DW DOO  *UDQWLQJ SHWLWLRQHUjV DUJXPHQW DV mD JUHDW QRQVHTXLWXU XQOHVV RQH
UHOLHIRQ+XH\jVFRPSODLQWZRXOGUHTXLUHWKDWZHDQQXOWKH EHOLHYHVDVZHGRQRWWKDWD†DFWLRQIRUGDPDJHVPXVW
MXGJPHQWRIWKH0LFKLJDQ'HSDUWPHQWRI&RUUHFWLRQV+HFN DOZD\V DQG HYHU\ZKHUH EH DYDLODEOHl  ,G DW   )RXU
IRUELGVWKDWUHVXOW FRQFXUULQJsXVWLFHVDQGWKHGLVVHQWGLVDJUHHGsXVWLFH6RXWHU
ZURWH
7KHEHWWHUYLHZLVWKDWDIRUPHUSULVRQHUQRORQJHU
mLQFXVWRG\lPD\EULQJD†DFWLRQHVWDEOLVKLQJWKH
 +XH\Y6WLQH 1R 1R +XH\Y6WLQH 

XQFRQVWLWXWLRQDOLW\ RI D FRQYLFWLRQ RU FRQILQHPHQW VWDWHPHQWVVKRXOGEHUHDGEURDGO\WRPHDQWKDWWKHUHLV
ZLWKRXWEHLQJERXQGWRVDWLVI\DIDYRUDEOHWHUPLQDWLRQ QHYHUDmVXFFHVVIXORXWFRPHlSUHUHTXLVLWHWRDSULVRQHU
UHTXLUHPHQWWKDWLWZRXOGEHLPSRVVLEOHDVDPDWWHURI EULQJLQJD†FODLP
ODZIRUKLPWRVDWLVI\7KXVWKHDQVZHUWR6SHQFHUjV 
DUJXPHQWWKDWKLVKDEHDVFODLPFDQQRWEHPRRWEHFDXVH :HGHFOLQHWRDGRSW5LOH\jVDUJXPHQW(YHQLIKHKDV
+HFNEDUVKLPIURPUHOLHIXQGHU†LVWKDW+HFNKDV FRUUHFWO\LQIHUUHGWKHGLUHFWLRQWKDWWKH6XSUHPH&RXUW
QRVXFKHIIHFW ZLOO WDNH LQ WKH \HDUV WR FRPH WKH UXOH KH DGYRFDWHV
UHSUHVHQWVDPDMRUH[WHQVLRQRIZKDWWKHILYH>s@XVWLFHV
,G DW  6RXWHU s FRQFXUULQJ VHH DOVR LG DW  Q KDYHDFWXDOO\VWDWHGLQWKHLUYDULRXVFRQFXUULQJRSLQLRQV
6WHYHQV s GLVVHQWLQJ DJUHHLQJ ZLWK sXVWLFH 6RXWHUjV 8QOHVVDQGXQWLOWKH6XSUHPH&RXUWDGRSWVWKHSRVLWLRQ
XQGHUVWDQGLQJRIWKHODZ3HUKDSVSUHGLFWDEO\WKHUHDFWLRQV 5LOH\DGYRFDWHVZHZLOOFRQWLQXHWRIROORZ(GZDUGVDQG
IURP WKH &RXUWV RI $SSHDOV WR 6SHQFHU WKHUHDVRQLQJRIWKHXQSXEOLVKHG6L[WK&LUFXLWFDVHVFLWHG
FRQFXUUHQFHGLVVHQWGLFWXPKDVQRWEHHQXQLIRUP&RPSDUH DERYH
sHQNLQVY+DXEHUW)GG&LUUHO\LQJ
SDUWLDOO\RQWKHWDOO\RIYRWHVLQ6SHQFHUWRFRQFOXGHWKDWmD 5LOH\1R:/DW
WK&LU6HSW
†VXLWE\DSULVRQHUFKDOOHQJLQJWKHYDOLGLW\RID 
GLVFLSOLQDU\RUDGPLQLVWUDWLYHVDQFWLRQWKDWGRHVQRWDIIHFWWKH
RYHUDOOOHQJWKRIWKHSULVRQHUjVFRQILQHPHQWLVQRWEDUUHGE\ 7RGD\ZHUHDIILUPWKHKROGLQJRI5LOH\DVWKHODZRIWKLV
+HFN DQG (GZDUGVl DQG 'H:DOW Y &DUWHU 1R  &LUFXLW,QRUGHUWRJUDQWWKHSODLQWLIILQWKLVFDVHWKHUHOLHI
 :/  WK &LU $XJ   IROORZLQJ WKDWKHVHHNVZHZRXOGKDYHWRXQZLQGWKHMXGJPHQWRIWKH
sHQNLQVZLWK)LJXHURDY5LYHUD)GQVW VWDWH DJHQF\  m7KLV LV SUHFLVHO\ WKH UHVXOW WKDW ZH KDYH
&LUDSSO\LQJ+HFNWREDUD†FODLPEURXJKWE\ UHSHDWHGO\ KHOG WR EH LPSHUPLVVLEOH EDVHG RQ RXU
WKHIDPLO\RIDSULVRQHUZKRFRXOGQRWFKDOOHQJHWKHIDFWRI LQWHUSUHWDWLRQRI(GZDUGVl,GDW
$OWKRXJK6SHQFHUPD\
KLVFRQILQHPHQWWKURXJKKDEHDVEHFDXVHKHKDGGLHGZKLOHLQ FDVW GRXEW XSRQ WKH XQLYHUVDOLW\ RI WKH mIDYRUDEOH
SULVRQ GHVSLWH mGLFWD IURP FRQFXUULQJ DQG GLVVHQWLQJ WHUPLQDWLRQl UHTXLUHPHQW ZH ZLOO FRQWLQXH WR IROORZ WKH
RSLQLRQVlLQ6SHQFHU 6XSUHPH&RXUWjVGLUHFWO\DSSOLFDEOHSUHFHGHQWDQGmOHDYHWR
WKH&RXUWµWKHSUHURJDWLYHRIRYHUUXOLQJLWVRZQGHFLVLRQVjl
2XU RZQ XQSXEOLVKHG SUDFWLFH KDV QRW ZDYHUHG LQ WKH )LJXHURD)GDWQTXRWLQJ$JRVWLQLY)HOWRQ
ZDNHRI6SHQFHU,Q5LOH\Y.XUW]DVLQWKLVFDVHDVWDWH 86$FFRUGLQJO\ZHKROGWKDW+HFNLVQRW
SULVRQHUEURXJKWD†DFWLRQDOOHJLQJWKDWDFRUUHFWLRQV PDGHLQDSSOLFDEOHWR+XH\jVFODLPE\WKHXQDYDLODELOLW\RI
RIILFHUKDGYLRODWHGKLV(LJKWKDPHQGPHQWULJKWVE\ILOLQJD KDEHDVUHOLHI
IDOVH PLVFRQGXFW UHSRUW  :H KHOG WKH FODLP EDUUHG E\ WKH
mIDYRUDEOHWHUPLQDWLRQlUHTXLUHPHQWVD\LQJRI6SHQFHU %
5LOH\ ZLVKHV WR H[WHQG WKLV UHDVRQLQJ IURP VLWXDWLRQV +XH\QH[WDUJXHVWKDW+HFNVKRXOGQRWEDUKLVVXLWEHFDXVH
ZKHUHKDEHDVFRUSXVLVSURFHGXUDOO\EDUUHGWRVLWXDWLRQV KLVFODLPVRXQGVXQGHUWKH(LJKWK$PHQGPHQW,QJHQHUDO
DV LQ WKH SUHVHQW FDVH ZKHUH WKH †  SODLQWLII PHW WKHIHGHUDOFRXUWVKROGWKDW(LJKWK$PHQGPHQWFODLPVGRQRW
ZLWK DQ XQVXFFHVVIXO RXWFRPH LQ D SULVRQ GLVFLSOLQDU\ UXQDIRXORI+HFNEHFDXVHWKHTXHVWLRQRIWKHGHJUHHRIIRUFH
KHDULQJ EXW KDV VHUYHG KLV IXOO SXQLVKPHQW IRU WKH XVHGE\DSROLFHRUFRUUHFWLRQVRIILFHULVDQDO\WLFDOO\GLVWLQFW
LQIUDFWLRQ  +H DUJXHV WKDW WKH FRQFXUULQJ >s@XVWLFHVj IURPWKHTXHVWLRQZKHWKHUWKHSODLQWLIIYLRODWHGWKHODZ6HH