McMeans v. Brigano

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

s(55< 0&0($16 ;
3HWLWLRQHU$SSHOODQW 

 1R
Y 
!

$17+21< s %5,*$12 
:DUGHQ 
5HVSRQGHQW$SSHOOHH 

1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL
1Rn6DQGUD6%HFNZLWK
$UJXHGsXQH
'HFLGHGDQG)LOHG2FWREHU
%HIRUH5<$16,/(5DQG&/$<&LUFXLWsXGJHV
BBBBBBBBBBBBBBBBB
&2816(/
$5*8('  :LOOLDP 5 *DOODJKHU &LQFLQQDWL 2KLR IRU
$SSHOODQW6WXDUW:+DUULV2)),&(2)7+($77251(<
*(1(5$/ &ROXPEXV 2KLR IRU $SSHOOHH  21 %5,()
:LOOLDP5*DOODJKHU&LQFLQQDWL2KLRIRU$SSHOODQW7RGG
5 0DUWL 2)),&( 2) 7+( $77251(< *(1(5$/
&ROXPEXV2KLRIRU$SSHOOHH


 0F0HDQVY%ULJDQR 1R

5<$1 s GHOLYHUHG WKH RSLQLRQ RI WKH FRXUW LQ ZKLFK
6,/(5sMRLQHG&/$<sSSGHOLYHUHGDVHSDUDWH
RSLQLRQFRQFXUULQJLQSDUWDQGGLVVHQWLQJLQSDUW
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
5<$1&LUFXLWsXGJH%HIRUHXVLVWKHDSSHDOIURPWKH
GLVWULFWFRXUWjVRUGHUGLVPLVVLQJWKHKDEHDVSHWLWLRQRIsHUU\
0F0HDQV DQ 2KLR SULVRQHU FRQYLFWHG RI UDSLQJ KLV
VWHSGDXJKWHU0F0HDQVDVVHUWVWKDWWKHGLVWULFWFRXUWHUUHG
ZKHQ LW KHOG WKDW KH KDG SURFHGXUDOO\ GHIDXOWHG RQ KLV
&RQIURQWDWLRQ&ODXVH%UDG\DQGMXURUELDVFODLPV+HDOVR
DUJXHVWKDWWKHGLVWULFWFRXUWHUUHGZKHQLWKHOGWKDWWKH2KLR
FRXUWmUHDVRQDEO\DSSOLHGlIHGHUDOODZLQGHFLGLQJWKDWWULDO
FRXQVHO UHQGHUHG FRQVWLWXWLRQDOO\ DGHTXDWH DVVLVWDQFH  :H
ZLOODIILUP
,
'XULQJWKHODWWHUKDOIRIWKHV0F0HDQVOLYHGZLWKKLV
ZLIH 7ZLOD DQG KHU FKLOGUHQ IURP D SUHYLRXV PDUULDJH
'RQDOGsUsHUU\0LVW\DQG:HQG\$FFRUGLQJWR:HQG\
RQHQLJKWLQWKHVXPPHURI:HQG\jVLQWR[LFDWHGPRWKHU
VXPPRQHGKHUXSVWDLUVWRDEHGURRPDQGRUGHUHGKHUWRKDYH
VH[XDO LQWHUFRXUVH ZLWK KHU VWHSIDWKHU DQ RUGHU :HQG\
DOOHJHGO\IROORZHG:HQG\DOVRDVVHUWHGWKDWDIWHUWKLVLQLWLDO
HQFRXQWHU 0F0HDQV IRUFHG KHU WR KDYH VH[XDO LQWHUFRXUVH
ZLWK KLP RU SHUIRUP IHOODWLR RQ KLP VHYHUDO PRUH WLPHV
VRPHWLPHV IRU PRQH\  0F0HDQV GHQLHV KDYLQJ KDG DQ\
VH[XDOUHODWLRQVKLSZLWK:HQG\
$W VRPH SRLQW GXULQJ WKLV SHULRG :HQG\ LQIRUPHG KHU
IDWKHU 'RQDOG 6HOI RI 0F0HDQVjV DOOHJHG VH[XDO
PLVFRQGXFW  'RQDOG FRQWDFWHG :HQG\jV PRWKHU DQG VKH
DOOHJHGO\ DVVXUHG KLP WKDW WKH SUREOHP ZRXOG QRW SHUVLVW
:HQG\ ODWHU LQIRUPHG 'RQDOG WKDW 0F0HDQVjV DOOHJHG
PLVEHKDYLRUFRQWLQXHGDQGVRRQWKHUHDIWHU'RQDOGVRXJKW
WKHDVVLVWDQFHRI)UDQNOLQ&RXQW\&KLOGUHQ6HUYLFHV)&&6
1R 0F0HDQVY%ULJDQR 

$WDERXWWKHVDPHWLPH:HQG\DOVRLQIRUPHGKHUILIWKJUDGH
WHDFKHU RI 0F0HDQVjV DOOHJHG DEXVH  :HQG\jV WHDFKHU
UHSRUWHG:HQG\jVDOOHJDWLRQVWR)&&6
$IWHUUHFHLYLQJWKHVHUHSRUWV)&&6WRRN:HQG\LQWRLWV
FXVWRG\$WDSSUR[LPDWHO\WKHVDPHWLPH0F0HDQVORVWKLV
MREDQGZDVHYLFWHGIURPKLVKRPHLQ&ROXPEXV2KLR+H
WKHQPRYHGZLWKKLVZLIHDQGWKHUHPDLQGHURIKLVDGRSWHG
IDPLO\WR:LVFRQVLQ
$IWHUD)UDQNOLQ&RXQW\JUDQGMXU\FKDUJHG0F0HDQVZLWK
VL[FRXQWVRIUDSH2KLRDXWKRULWLHVHYHQWXDOO\ORFDWHGKLPLQ
:LVFRQVLQDQGSURFXUHGKLVUHWXUQWRIDFHFULPLQDOFKDUJHV
0F0HDQVDOOHJHVWKDWGXULQJYRLUGLUHLWEHFDPHDSSDUHQW
WKDWWZRSURVSHFWLYHMXURUVZRXOGEHELDVHG$FFRUGLQJWR
0F0HDQVMXURU+XQWZDVWKHPRWKHURIDUDSHYLFWLPDQG
MXURU *UH\jV GDXJKWHU KDG EHHQ PXUGHUHG  0F0HDQV DOVR
DVVHUWV WKDW *UH\ ZDV IULHQGV ZLWK WKH mFKLHI FRXQW\
SURVHFXWRUl  0F0HDQV FODLPV WKDW GHVSLWH KLV SHUVRQDO
REMHFWLRQV WR WKHVHMXURUVKLVWULDOFRXQVHOGLGQRWHPSOR\
XQXVHG SHUHPSWRU\ FKDOOHQJHV WR UHPRYH +XQW DQG *UH\
7KHUH LV QR UHFRUG VXSSRUW IRU 0F0HDQVjV DVVHUWLRQV
KRZHYHUEHFDXVHKLVWULDOFRXQVHOZDLYHGWKHULJKWWRKDYH
YRLUGLUHSURFHHGLQJVWUDQVFULEHG
$W WULDO :HQG\ WHVWLILHG WKDW 0F0HDQV KDG UDSHG KHU
VHYHUDOWLPHVDQG0F0HDQVGHQLHGWKRVHFKDUJHV7KHWKHRU\
RI0F0HDQVjVGHIHQVHZDVWKDW:HQG\KDGIDEULFDWHGDVWRU\
RIVH[XDODEXVHLQRUGHUWKDWKHUIDWKHUZRXOGJDLQSK\VLFDO
FXVWRG\ RI KHU  $VLGH IURP WKH WHVWLPRQ\ RI :HQG\ DQG
0F0HDQVVHYHUDORWKHUZLWQHVVHVWHVWLILHGWKDW:HQG\KDG
LQIRUPHGWKHPRI0F0HDQVjVDOOHJHGPLVEHKDYLRU
7KH RQO\ SK\VLFDO HYLGHQFH SUHVHQWHG DW WULDO ZDV WKH
WHVWLPRQ\RIDGRFWRUIURP)&&6ZKRKDGH[DPLQHG:HQG\
7KDW GRFWRU WHVWLILHG WKDW :HQG\ KDG VFDUULQJ DQG
mLUUHJXODULWLHVlRQKHUK\PHQZKLFKSRVVLEO\LQGLFDWHGVH[XDO
DFWLYLW\
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

2QWKHVHFRQGGD\RIWULDOWKHSURVHFXWLRQJDYHWKHWULDO 3HWLWLRQHUZDVSUHMXGLFHGE\KLVFRXQVHOjVIDLOXUHWRUDLVHWKH
MXGJHSRUWLRQVRIUHSRUWVIURP)&&6IRULQFDPHUDUHYLHZ %UDG\YLRODWLRQFODLPWKHUHE\SURYLGLQJDVXIILFLHQWEDVLVWR
7KHUHSRUWVQRWHGWKDW:HQG\KDGDFFXVHGWZRRWKHUPHQRI H[FXVHKLVSURFHGXUDOGHIDXOW6HH&ROHPDQ86DW
VH[XDOO\ DVVDXOWLQJ KHU DIWHU WKH SHWLWLRQHUjV DOOHJHG DEXVH
$IWHUUHYLHZLQJWKHILOHWKHWULDOMXGJHLQIRUPHG0F0HDQVjV ,QDGGLWLRQLIWKHSULRUUDSHDOOHJDWLRQVZHUHIRXQGWRKDYH
FRXQVHORI:HQG\jVVXEVHTXHQWUDSHDFFXVDWLRQVEXWZDUQHG EHHQIDOVH,ZRXOGILQG3HWLWLRQHUjV6L[WK$PHQGPHQWULJKW
FRXQVHOWKDWKHGLGQRWWKLQNVXFKHYLGHQFHZDVDGPLVVLEOH WRFRQIURQWKLVDFFXVHUZDVYLRODWHGEXWIRUWKLV&RXUWjVUHFHQW
XQGHU 2KLR ODZ  7KH IROORZLQJ GD\ ZKHQ 0F0HDQVjV KROGLQJLQ%RJJVY&ROOLQVBBB)GBBB1R
FRXQVHODWWHPSWHGWRTXHVWLRQ:HQG\DQGKHUIDWKHUDERXWWKH :/DW

WK&LU6HSW,QDFDVH
VXEVHTXHQWUDSHDFFXVDWLRQVWKHWULDOMXGJHUXOHGWKDWVXFK VXFK DV WKLV ZKHUH WKH SK\VLFDO HYLGHQFH LV IDU IURP
H[DPLQDWLRQZDVLPSHUPLVVLEOHXQGHUWKH2KLRUDSHVKLHOG FRPSHOOLQJDQGWKHGHWHUPLQDWLRQRIJXLOWRULQQRFHQFHWXUQV
ODZ XSRQWKHFUHGLELOLW\RIWKHYLFWLPDQGWKHDFFXVHGLWLVDOOWKH
PRUHLPSRUWDQWWKDWDGHIHQGDQWKDYHWKHULJKWWRFRQIURQWKLV
$IWHUWKHWULDOMXGJHGLVPLVVHGRQHRIWKHFRXQWVDJDLQVW DFFXVHU
0F0HDQV WKH MXU\ IRXQG 0F0HDQV JXLOW\ RI WKH ILYH
UHPDLQLQJFRXQWV7KHWULDOMXGJHVHQWHQFHG0F0HDQVWRILYH )RUWKHIRUHJRLQJUHDVRQV,ZRXOGFRQGLWLRQDOO\JUDQWWKH
OLIHVHQWHQFHV KDEHDVSHWLWLRQE\RUGHULQJWKH3HWLWLRQHUjVUHOHDVHXQOHVVWKH
6WDWHRQUHPDQGFRQGXFWVDQHYLGHQWLDU\KHDULQJWRGHWHUPLQH
0F0HDQV WLPHO\ DSSHDOHG KLV FRQYLFWLRQ ZLWK WKH ZKHWKHUWKHSULRUUDSHDOOHJDWLRQVZHUHDFWXDOO\IDOVH,IWKH
DVVLVWDQFHRIDSSRLQWHGFRXQVHO&RXQVHODUJXHG UDSHDOOHJDWLRQVDUHSURYHQIDOVH3HWLWLRQHUjVDSSOLFDWLRQIRU
WKHZULWVKRXOGEHJUDQWHGDQGDQHZWULDORUGHUHG
>@ 7+(75,$/&2857(55(',1$'0,77,1*
(9,'(1&(2)35,25%$'$&76
>@ 7+(75,$/&2857(55('%<(;&/8',1*
(9,'(1&( 2) 3526(&875,;j6 35,25
$&&86$7,2162)5$3($*$,16727+(56
,19,2/$7,212)$33(//$17j65,*+772
$)$,575,$/$1'72'8(352&(662)
/$:$6*8$5$17(('%<7+(),)7+$1'
)2857((17+ $0(1'0(176 72 7+(
81,7(' 67$7(6 &2167,787,21 $1'
$57,&/( , 6(&7,21  2) 7+( 2+,2
&2167,787,21
>@ 7+( 75,$/ &2857 (55(' %<
29(558/,1* $33(//$17j6 027,21 72
',60,66 >7+( &+$5*(6 $*$,167 +,0
:+,&+:(5(,03(50,66,%/<9$*8(@
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

JRYHUQPHQW3HWLWLRQHUZDVXQDEOHWRGHWHUPLQHWKHYHUDFLW\ >@ $33(//$17 :$6 '(1,(' ())(&7,9(
RIWKHYLFWLPjVDOOHJDWLRQV$VDUHVXOWWKHWULDOFRXUWUHIXVHG $66,67$1&(2)&2816(/,19,2/$7,21
WRDOORZWKHSULRUUDSHDOOHJDWLRQVLQWRHYLGHQFHWRLPSHDFK 2) 7+( 6,;7+ $1' )2857((17+
WKH FUHGLELOLW\ RI WKH YLFWLP EHFDXVH XQGHU WKH 2KLR 5DSH $0(1'0(176 72 7+( 81,7(' 67$7(6
6KLHOG/DZWKHSULRUUDSHDOOHJDWLRQVFRXOGQRWEHEURXJKW &2167,787,21$1'$57,&/(,6(&7,21
RXWDWWULDOXQOHVVWKH\ZHUHIDOVH6HH2+,2 5' &  $ 2)7+(2+,2&2167,787,21
† '  %HFDXVH 3HWLWLRQHUjV DSSHOODWH FRXQVHO ZDV
DZDUHRIWKHXQWLPHO\GLVFORVXUHE\WKHJRYHUQPHQWDQGWKH $IWHU VXEPLWWLQJ WKRVH DUJXPHQWV 0F0HDQV ILOHG D
UHVXOWLQJ SUHMXGLFLDO UHSHUFXVVLRQV WR 3HWLWLRQHU LW ZDV VXSSOHPHQWDO EULHI SUR VH ZKLFK DVVHUWHG DPRQJ RWKHU
REMHFWLYHO\XQUHDVRQDEOHIRU3HWLWLRQHUjVDSSHOODWHFRXQVHOQRW FODLPVWKDWWKHSURVHFXWLRQIDLOHGWRFRPSO\ZLWKWKHGXWLHV
WRUDLVHD%UDG\FODLPRQGLUHFWDSSHDO3HWLWLRQHUjVDSSHOODWH UHFRJQL]HGE\WKH6XSUHPH&RXUWLQ%UDG\Y0DU\ODQG
FRXQVHO WKXV UHQGHUHG LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO 862Q)HEUXDU\WKH2KLR&RXUWRI
FRQVWLWXWLQJ FDXVH WR H[FXVH WKH GHIDXOW  6HH %DQNV Y $SSHDOV VWUXFN 0F0HDQVjV EULHI QRWLQJ WKDW KH KDG WKH
5H\QROGV)GWK&LUKROGLQJWKDW RSWLRQRIGLVPLVVLQJKLVDSSRLQWHGFRXQVHODQGUHO\LQJXSRQ
DSSHOODWHFRXQVHOZKRIDLOHGWRUDLVHD%UDG\FODLPUHQGHUHG KLV SUR VH EULHI  0F0HDQV GLG QRW GLVPLVV KLV DSSRLQWHG
SHWLWLRQHULQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOVHHDOVR FRXQVHO
&DUULHU86DW
7KH 2KLR &RXUW RI $SSHDOV DIILUPHG 0F0HDQVjV
7XUQLQJ WR WKH DFWXDO SUHMXGLFH SURQJ RI WKH FDXVH DQG FRQYLFWLRQRQ$XJXVW$VWR0F0HDQVjVFRQWHQWLRQ
SUHMXGLFHVWDQGDUGLWLVZHOOHVWDEOLVKHGWKDWDSURVHFXWLRQjV WKDWWULDOFRXQVHOVKRXOGKDYHEHHQDOORZHGWRSXUVXHLQTXLU\
IDLOXUHWRGLVFORVHHYLGHQFHWKDWLVIDYRUDEOHDQGPDWHULDOWR LQWR :HQG\jV SULRU UDSH DFFXVDWLRQV WKH DSSHOODWH FRXUW
WKHLVVXHRIJXLOWYLRODWHVDGHIHQGDQWjVULJKWWRGXHSURFHVV VWDWHG
6HH%UDG\Y0DU\ODQG86+HUHWKH
UHFRUG GRHV QRW DOORZ IRU D GHWHUPLQDWLRQ RI ZKHWKHU 7KLVFRXUWILQGVWKDWWKH>2KLR@UDSHVKLHOGODZLVQRW
3HWLWLRQHUZDVDFWXDOO\SUHMXGLFHGE\KLVFRXQVHOjVIDLOXUHWR DSSOLFDEOH WR WKLV FDVH VLQFH WKH HYLGHQFH FRQFHUQLQJ
UDLVH WKH %UDG\ FODLP EHFDXVH WKH UHFRUG LV LQVXIILFLHQW WR ZKHWKHURUQRW:HQG\IDEULFDWHGRWKHUUDSHFKDUJHVGRHV
GHWHUPLQH ZKHWKHU WKH SULRU UDSH DOOHJDWLRQV ZHUH IDOVH QRW DGGUHVV DQ\ DVSHFW RI KHU VH[XDO DFWLYLW\  7KH
'HIHQVH FRXQVHO GLG QRW UHTXHVW DQ LQ FDPHUD KHDULQJ HYLGHQFH PHUHO\ DGGUHVVHV ZKHWKHU RU QRW :HQG\ LV D
+RZHYHUKDGDQLQFDPHUDKHDULQJEHHQUHTXHVWHGDQGKDG FUHGLEOH ZLWQHVV  +RZHYHU EHIRUH D WULDO FRXUW PD\
LW\LHOGHGDILQGLQJWKDWWKHDOOHJHGYLFWLPjVUDSHDOOHJDWLRQV DGPLW HYLGHQFH WKDW WKH YLFWLP KDG PDGH SULRU
DJDLQVW WZR RWKHU PHQ ZHUH IDOVH WKHQ D %UDG\ YLRODWLRQ DFFXVDWLRQVRIUDSHDJDLQVWRWKHUVWKHWULDOFRXUWPXVWEH
RFFXUUHGEHFDXVH3HWLWLRQHUZDVGHQLHGWKHXVHRImHYLGHQFH VDWLVILHGWKDWWKHSULRUDFFXVDWLRQVZHUHLQIDFWIDOVH
WKDW>FRXOGKDYHEHHQ@XVHGWRLPSHDFKWKHFUHGLELOLW\RID
ZLWQHVV>@lVHH6FKOHGZLW]Y8QLWHG6WDWHV)G ,Q WKLV FDVH WKHUH LV QR HYLGHQFH LQ WKH UHFRUG WKDW
 WK &LU  WKXV UHVXOWLQJ LQ DFWXDO SUHMXGLFH WR :HQG\jVSULRUDFFXVDWLRQVZHUHIDOVH+DGDSSHOODQW
3HWLWLRQHU,QDVPXFKDVLWLVQRWSRVVLEOHWRGHWHUPLQHWKH ZLVKHG WR SURIIHU HYLGHQFH RI WKH IDOVLW\ RI WKH SULRU
YHUDFLW\RIWKHYLFWLPjVSULRUUDSHDOOHJDWLRQVRQWKHUHFRUG DFFXVDWLRQVDSSHOODQWFRXOGKDYHDYDLOHGKLPVHOIRIDQ
EHIRUH XV , ZRXOG UHPDQG WR WKH GLVWULFW FRXUW ZLWK LQFDPHUDKHDULQJ6LQFHDSSHOODQWGLGQRWWKLVFRXUW
LQVWUXFWLRQV WR KROG DQ HYLGHQWLDU\ KHDULQJ WR GHWHUPLQH FDQQRWILQGWKDWWKHWULDOFRXUWDEXVHGLWVGLVFUHWLRQLQ
ZKHWKHUWKHSULRUUDSHDOOHJDWLRQVZHUHLQIDFWIDOVH,IVR GHFOLQLQJWRSHUPLWDSSHOODQWjVFRXQVHOWRFURVVH[DPLQH
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

:HQG\RQKHUSULRUDFFXVDWLRQVRIUDSH$FFRUGLQJO\ JHQHUDOO\GHPRQVWUDWHFDXVHLIKHFDQSUHVHQWDVXEVWDQWLDO
DSSHOODQWjVVHFRQGDVVLJQPHQWRIHUURULVQRWZHOOWDNHQ UHDVRQWRH[FXVHWKHGHIDXOW6HH5XVWY=HQW)G
WK&LU,Q0XUUD\Y&DUULHUWKH6XSUHPH&RXUW
5HJDUGLQJ0F0HDQVjVLQHIIHFWLYHDVVLVWDQFHFODLPWKHFRXUW VWDWHGWKDWmWKHH[LVWHQFHRIFDXVHIRUSURFHGXUDOGHIDXOWPXVW
KHOGWKDWmQRQHRIWKHWKLQJVDSSHOODQWDVVHUWVDVLQHIIHFWLYHLQ RUGLQDULO\WXUQRQZKHWKHUWKHSULVRQHUFDQVKRZWKDWVRPH
DQGRIWKHPVHOYHVGHPRQVWUDWHVLQHIIHFWLYHQHVVRQWKHIDFHRI REMHFWLYH IDFWRU H[WHUQDO WR WKH GHIHQVH LPSHGHG FRXQVHOjV
WKHUHFRUGDQGPRVWFHUWDLQO\GRQRWGHPRQVWUDWHWKDWWKH HIIRUWVWRFRPSO\ZLWKWKH6WDWHjVSURFHGXUDOUXOHl86
UHVXOWZRXOGKDYHEHHQGLIIHUHQWl0F0HDQVILOHGDPRWLRQ 7KXVLQHIIHFWLYHDVVLVWDQFHRIFRXQVHO
IRU UHFRQVLGHUDWLRQ RI WKDW GHFLVLRQ ZKLFK WKH FRXUW RI FDQFRQVWLWXWHFDXVH6HHLG
DSSHDOVGHQLHGRQ1RYHPEHU
3HWLWLRQHUDUJXHVWKDWWKHUHIXVDORIKLVDSSHOODWHFRXQVHOWR
0F0HDQVWKHQILOHGDSURVHDSSHDOWRWKH2KLR6XSUHPH UDLVH D %UDG\ YLRODWLRQ RQ KLV GLUHFW DSSHDO UHVXOWHG LQ
&RXUWFODLPLQJIRXUHUURUVLQKLVWULDOLQFOXGLQJWKHFODLPWKDW LQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOWKHUHE\FRQVWLWXWLQJ
KLVULJKWVJXDUDQWHHGE\WKH&RQIURQWDWLRQ&ODXVHKDGEHHQ FDXVHIRUWKHSURFHGXUDOGHIDXOW$OWKRXJKWDFWLFDOFKRLFHV
YLRODWHG  7KH 2KLR 6XSUHPH &RXUW GHFOLQHG WR KHDU WKH UHJDUGLQJ LVVXHV UDLVHG RQ DSSHDO DUH SURSHUO\ OHIW WR WKH
DSSHDO VRXQGSURIHVVLRQDOMXGJPHQWRIFRXQVHOVHH8QLWHG6WDWHVY
3HUU\)GWK&LUEDVHGXSRQWKHIDFWXDO
:KLOHKLVGLUHFWDSSHDOZDVSHQGLQJ0F0HDQVILOHGDSUR FLUFXPVWDQFHV RI WKLV FDVH DQG WKH ODFN RI RYHUZKHOPLQJ
VHPRWLRQIRUDQHZWULDODUJXLQJLQHIIHFWLYHDVVLVWDQFH RI HYLGHQFH DJDLQVW 3HWLWLRQHU LW ZDV EHORZ WKH REMHFWLYH
WULDOFRXQVHODQGWKDWWKHSURVHFXWLRQIDLOHGWRIXOILOOLWV%UDG\ VWDQGDUGRIUHDVRQDEOHQHVVIRUDSSHOODWHFRXQVHOQRWWRUDLVH
REOLJDWLRQV$IWHUWKH2KLR&RXUWRI$SSHDOVDIILUPHGKLV D%UDG\YLRODWLRQRQ3HWLWLRQHUjVGLUHFWDSSHDO
FRQYLFWLRQ WKH WULDO FRXUW UHMHFWHG 0F0HDQVjV PRWLRQ
KROGLQJWKDWVXFKPRWLRQZDVXQWLPHO\DQGWLPLQJDVLGHWKDW $VWKHUHFRUGLQGLFDWHVWKHWZRSULRUDOOHJDWLRQVRIUDSHGLG
KLV DUJXPHQWV KDG EHHQ FRQVLGHUHG DQG UHMHFWHG DW WKH QRWFRPHWROLJKWXQWLODIWHUWKHILUVWGD\RIWULDO7KHYLFWLP
DSSHOODWHOHYHO DOOHJHGWKDWVKHKDGEHHQUDSHGE\KHUJLUOIULHQGjVER\IULHQG
LQ$SULORIDQGE\DWKLUW\HLJKW\HDUROGPDQLQsXQHRI
0F0HDQV XQVXFFHVVIXOO\ DSSHDOHG WKH WULDO FRXUWjV 'XHWRWKHXQWLPHO\GLVFORVXUHRIWKLVHYLGHQFHE\WKH
GHFLVLRQ7KH2KLR&RXUWRI$SSHDOVDIILUPHGUXOLQJWKDW
0F0HDQVjVPRWLRQZDVXQWLPHO\0F0HDQVWKHQDSSHDOHG
WRWKH2KLR6XSUHPH&RXUWZKLFKGHFOLQHGWRH[HUFLVHLWV

MXULVGLFWLRQRYHUKLVDSSHDO 7KH 6XSUHPH &RXUW UHFHQWO\ KHOG WKDW ZKHQ D SHWLWLRQHU UHOLHV XSRQ
DQ LQHIIHFWLYHQHVV RI FRXQVHO FODLP DV FDXVH WR H[FXVH KLV SURFHGXUDO

,Q1RYHPEHU0F0HDQVILOHGKLVILUVWKDEHDVSHWLWLRQ GHIDXOW WKH LQHIIHFWLYHQHVV RI FRXQVHO FODLP PXVW LWVHOI KDYH EHHQ

LQIHGHUDOFRXUWDUJXLQJWKDWWKHSURVHFXWLRQIDLOHGWRGLVFORVH H[KDXVWHG EHIRUH WKH VWDWH FRXUWV LQ RUGHU WR FRPSO\ ZLWK WKH FRPPDQGV
 86    6HH (GZDUGV Y
H[FXOSDWRU\HYLGHQFHDQGWKDWKLV&RQIURQWDWLRQ&ODXVHULJKWV RI 0XUUD\ Y &DUULHU
&DUSHQWHU BBB 86 BBB  6 &W    ,Q WKH FDVH
KDGEHHQYLRODWHG:KLOHKLVSHWLWLRQZDVSHQGLQJWKH2KLR DW KDQG SXUVXDQW WR 3HWLWLRQHUjV 0XUQDKDQ PRWLRQ KH SUHVHQWHG KLV FODLP
6XSUHPH&RXUWUXOHGLQ6WDWHY0XUQDKDQ1(G WKDW KLV DSSHOODWH FRXQVHO JURVVO\ HUUHG LQ IDLOLQJ WR UDLVH KLV %UDG\ FODLP
2KLR  WKDW DQ LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH WR WKH WULDO FRXUW KH DSSHDOHG WKDW GHFLVLRQ WR WKH 2KLR &RXUW RI $SSHDOV
FRXQVHO FODLP FRXOG EH UDLVHG LQ D GHOD\HG PRWLRQ IRU DQG ILOHG DQ DSSOLFDWLRQ IRU OHDYH WR DSSHDO WKH FRXUW RI DSSHDOV GHFLVLRQ
WR WKH 2KLR 6XSUHPH &RXUW EXW KLV DSSOLFDWLRQ ZDV GHQLHG 7KHUHIRUH
UHFRQVLGHUDWLRQ RI D GLUHFW DSSHDO  *LYHQ WKLV UXOLQJ &DUSHQWHU KDV EHHQ VDWLVILHG LQ WKDW 3HWLWLRQHU H[KDXVWHG KLV VWDWH FRXUW
0F0HDQVPRYHGWRGLVPLVVKLVSHWLWLRQZLWKRXWSUHMXGLFHLQ UHPHGLHV EHIRUH VHHNLQJ IHGHUDO KDEHDV UHOLHI 6HH  6 &W DW 
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB RUGHU WKDW KH PLJKW ILOH D 0XUQDKDQ PRWLRQ  7KH GLVWULFW
FRXUWJUDQWHGWKLVUHTXHVW
&21&855,1*,13$57',66(17,1*,13$57
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 0F0HDQVWKHQVXEPLWWHGKLV0XUQDKDQPRWLRQDQGDUJXHG
WKDWKLVDSSHOODWHFRXQVHOJURVVO\HUUHGLQIDLOLQJWRUDLVHKLV
&/$<&LUFXLWsXGJHFRQFXUULQJLQSDUWDQGGLVVHQWLQJLQ &RQIURQWDWLRQ&ODXVH%UDG\DQGMXURUELDVFODLPV7KH2KLR
SDUW,DJUHHZLWKWKHPDMRULW\jVFRQFOXVLRQWKDW3HWLWLRQHU &RXUWRI$SSHDOVUXOHGILUVWWKDWWKHGHFLVLRQQRWWRUDLVHWKH
SURFHGXUDOO\ GHIDXOWHG KLV MXURU ELDV FODLP DQG GLG QRW MXURUELDVFODLPZDVOLNHO\mDSSHOODWHVWUDWHJ\lDQGWKHFRXUW
GHPRQVWUDWH FDXVH DQG SUHMXGLFH WR H[FXVH WKH SURFHGXUDO ZDV QRW SUHSDUHG WR JDLQVD\ WKDW WDFWLFDO GHFLVLRQ  $V WR
GHIDXOW+RZHYHU,GLVDJUHHZLWKWKHPDMRULW\jVFRQFOXVLRQ 0F0HDQVjV DUJXPHQW WKDW DSSHOODWH FRXQVHO VKRXOG KDYH
WKDW3HWLWLRQHUGLGQRWmIDLUO\SUHVHQWlKLV6L[WK$PHQGPHQW SUHVHQWHGD%UDG\FODLPWKDWFRXUWVWDWHG
FODLPWRWKH2KLRVWDWHFRXUWVDVZHOODVZLWKWKHPDMRULW\jV
GLVSRVLWLRQRI3HWLWLRQHUjV%UDG\FODLP 7KHWULDOFRXUWLQWKLVFDVHUHYLHZHGWKHFKLOGUHQVj>VLF@
VHUYLFHVILOHDQGGLVFORVHGWKHDSSURSULDWHLQIRUPDWLRQWR
3HWLWLRQHU FODLPV WKDW WKH SURVHFXWLRQjV IDLOXUH WR WLPHO\ ERWK SDUWLHV  ,W ZDV DV D UHVXOW RI WKLV LQ FDPHUD
SURGXFH HYLGHQFH RI WKH YLFWLPjV SULRU UDSH DOOHJDWLRQV LQVSHFWLRQ WKDW DSSHOODQW EHFDPH DZDUH RI WKH
YLRODWHGKLV6L[WK$PHQGPHQWULJKWWRFRQIURQWDWLRQ7KH LQIRUPDWLRQKHQRZDVVHUWVZDVQRWSURSHUO\SURYLGHGWR
PDMRULW\FRQFOXGHGWKDW3HWLWLRQHUGLGQRWIDLUO\SUHVHQWKLV KLP
6L[WK $PHQGPHQW FODLP WR WKH 2KLR VWDWH FRXUWV DQG DV D
FRQVHTXHQFHZDLYHGWKHFODLPIRUIHGHUDOKDEHDVUHYLHZ$ 7KLVFRXUWKDVSUHYLRXVO\DGGUHVVHGWKHLVVXHRIWKH
VWDWHSULVRQHUVHHNLQJIHGHUDOKDEHDVUHOLHImIDLUO\SUHVHQWVl SULRUUDSHUHSRUWVDQGIRXQGWKDWWKHWULDOFRXUWGLGQRWHUU
WKHVXEVWDQFHRIHDFKFODLPWRVWDWHFRXUWVDVUHTXLUHGE\ LQH[FOXGLQJWKLVHYLGHQFHIURPWKHWULDO$VDUHVXOW
FLWLQJ DSSOLFDEOH SURYLVLRQV RI WKH &RQVWLWXWLRQ IHGHUDO WKLV FRXUW FDQQRW ILQG WKDW DSSHOODWH FRXQVHO ZDV
GHFLVLRQV XVLQJ FRQVWLWXWLRQDO DQDO\VLV RU VWDWH GHFLVLRQV LQHIIHFWLYH LQ IDLOLQJ WR UDLVH WKH LVVXHV DSSHOODQW QRZ
HPSOR\LQJFRQVWLWXWLRQDODQDO\VLVLQVLPLODUIDFWSDWWHUQV6HH UDLVHVDVDVVLJQPHQWVRIHUURULQKLVSUHYLRXVDSSHDO
86&†E&DUWHUY%HOO)G
WK &LU   %HFDXVH 3HWLWLRQHU FLWHG WKH 6L[WK )LQDOO\WKHDSSHOODWHFRXUWUXOHGWKDWDSSHOODWHFRXQVHOKDG
$PHQGPHQWLQKLVVWDWHFRXUWDSSHDODQGEHFDXVHWKH2KLR LQIDFWUDLVHGD&RQIURQWDWLRQ&ODXVHFODLPLQ0F0HDQVjV
&RXUWRI$SSHDOVXQGHUVWRRGWKDW3HWLWLRQHUZDVDVVHUWLQJKLV GLUHFW DSSHDO DQG WKDW FODLP KDG EHHQ UHMHFWHG  0F0HDQV
6L[WK$PHQGPHQWULJKWWRFRQIURQWDZLWQHVVDVHYLGHQFHGE\ DSSHDOHGWKDWGHFLVLRQWRWKH2KLR6XSUHPH&RXUWZKLFKIRU
WKH ODQJXDJH XVHG LQ LWV RSLQLRQ , EHOLHYH WKDW 3HWLWLRQHU DWKLUGWLPHGHFOLQHGWRKHDUKLVFDVH
mIDLUO\SUHVHQWHGlKLVFRQIURQWDWLRQFODLPWRWKH2KLRVWDWH
FRXUWV,WKHUHIRUHEHOLHYHWKHPDMRULW\VKRXOGKDYHUHDFKHG ,Q$XJXVW0F0HDQVILOHGKLVVHFRQGIHGHUDOKDEHDV
WKHPHULWVRI3HWLWLRQHUjV6L[WK$PHQGPHQWFODLP SHWLWLRQ  7KH GLVWULFW FRXUW GLVPLVVHG 0F0HDQVjV SHWLWLRQ
ZLWKRXWSUHMXGLFHDIWHUWKHUHVSRQGHQWDUJXHGWKDW0F0HDQV
$OWKRXJK WKH PDMRULW\ LV FRUUHFW LQ FRQFOXGLQJ WKDW VKRXOGEHUHTXLUHGWRVHHNUHOLHIXQGHU2KLRjVSRVWFRQYLFWLRQ
3HWLWLRQHUSURFHGXUDOO\GHIDXOWHGRQKLV%UDG\FODLPDUHYLHZ SURFHGXUH:KHQWKHUHVSRQGHQWSUHVHQWHGLWVDUJXPHQWLQ
RI 3HWLWLRQHUjV FODLP LV QRW IRUHFORVHG VR ORQJ DV KH FDQ VXSSRUWRIGLVPLVVDOLWQRWHGWKDWLI0F0HDQVFKRVHWRILOHDQ
mGHPRQVWUDWHFDXVHIRUWKHGHIDXOWDQGDFWXDOSUHMXGLFHDVD 2KLR SRVWFRQYLFWLRQ PRWLRQ UHVSRQGHQW ZRXOG DUJXH WKDW
UHVXOWRIWKHDOOHJHGYLRODWLRQRIIHGHUDOODZl&ROHPDQY 0F0HDQV KDG SURFHGXUDOO\ GHIDXOWHG RQ KLV FRQVWLWXWLRQDO
7KRPSVRQ  86     $ SHWLWLRQHU FDQ FODLPV
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

,Q $SULO  0F0HDQV DFWLQJ SUR VH UHTXHVWHG SDUWFUHGLEOH:HWKHUHIRUHIDLOWRVHHKRZWKHVHDWLQJRI
SRVWFRQYLFWLRQUHOLHIIURPWKH2KLRFRXUWV2KLR5HY&RGH WZRDOOHJHGO\ELDVHGMXURUVXQGHUPLQHVWKHUHOLDELOLW\RIWKH
$QQ†,QWKDWPRWLRQ0F0HDQVDUJXHGWKDWKLV SHWLWLRQHUjV FRQYLFWLRQ  &RQVHTXHQWO\ ZH KDYH QR
DSSRLQWHGWULDOFRXQVHOSURYLGHGFRQVWLWXWLRQDOO\LQHIIHFWLYH MXULVGLFWLRQWRUHYLHZWKHSHWLWLRQHUjVQDUURZDUJXPHQW
DVVLVWDQFH E\ IDLOLQJ WR UHPRYH WKH WZR DOOHJHGO\ ELDVHG
MXURUV  7KH WULDO FRXUW GHQLHG 0F0HDQVjV PRWLRQ VWDWLQJ ,,,
m>7@ULDOFRXQVHOjVGHFLVLRQQRWWRH[FOXGHWKHVHMXURUVFRXOG
KDYH EHHQ EDVHG XSRQ RWKHU IDYRUDEOH DQVZHUV WKDW WKHVH )RU WKH IRUHJRLQJ UHDVRQV WKH RUGHU DQG RSLQLRQ RI WKH
MXURUVJDYH(YHQEDUULQJWKDWWKLVFODLPVKRXOGKDYHEHHQ GLVWULFWFRXUWDUH$)),50('
UDLVHGRQDSSHDODQGLVQRZUHVMXGLFDWDl7KH2KLR&RXUWRI
$SSHDOVDIILUPHG7KH6XSUHPH&RXUWRI2KLRGHFOLQHGWR
KHDU0F0HDQVjVDSSHDO
,Q 0DUFK  0F0HDQV VWLOO DFWLQJ SUR VH ILOHG D
mGHOD\HGPRWLRQIRUDQHZWULDOEDVHGRQQHZO\GLVFRYHUHG
HYLGHQFHl DUJXLQJ WKDW 2KLR GHQLHG KLP KLV 6L[WK
$PHQGPHQWULJKWWREHWULHGE\DQLPSDUWLDOMXU\7KHWULDO
FRXUWGHQLHGWKLVPRWLRQUXOLQJWKDWWKHHYLGHQFHSUHVHQWHGE\
0F0HDQVGLGQRWGHPRQVWUDWHWKHQHFHVVLW\RIDQHZWULDO
7KH2KLR&RXUWRI$SSHDOVDIILUPHG
2Q sDQXDU\   0F0HDQV QRZ UHSUHVHQWHG E\
FRXQVHOILOHGKLVWKLUGIHGHUDOKDEHDVSHWLWLRQ+HDUJXHG
WKDWMXURUELDVGHQLHGKLPDIDLUWULDOWKDWWULDODQGDSSHOODWH
FRXQVHOSURYLGHGLQHIIHFWLYHDVVLVWDQFHWKDWWKHSURVHFXWLRQ
IDLOHGWRWXUQRYHUH[FXOSDWRU\HYLGHQFHLQDWLPHO\PDQQHU
DQGWKDWWKHOLPLWDWLRQRQFURVVH[DPLQDWLRQRI:HQG\6HOI
YLRODWHGULJKWVJXDUDQWHHGE\WKH&RQIURQWDWLRQ&ODXVH
7KHGLVWULFWFRXUWGLVPLVVHGWKHSHWLWLRQ7KDWFRXUWUXOHG
WKDW0F0HDQVKDGSURFHGXUDOO\GHIDXOWHGRQKLV%UDG\DQG
MXURUELDVFODLPV7KHFRXUWWKHQKHOGWKDW0F0HDQVIDLOHGWR
GHPRQVWUDWHLQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOZKLFK
FRXOG VHUYH DV mFDXVHl WR UHYLHZ WKRVH FODLPV  $V WR
0F0HDQVjVLQHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOFODLPWKH
GLVWULFWFRXUWUXOHGWKDWm>W@KHVWDWHFRXUWGHFLVLRQUHMHFWLQJ
SHWLWLRQHUjVFODLPRILQHIIHFWLYHDVVLVWDQFHRIWULDOFRXQVHOZDV
QHLWKHU FRQWUDU\ WR QRU XQUHDVRQDEOH LQ OLJKW RI FOHDUO\
HVWDEOLVKHGIHGHUDOODZl)LQDOO\WKHGLVWULFWFRXUWUXOHGWKDW
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

' 0F0HDQVKDGQRWmIDLUO\SUHVHQWHGlWKH&RQIURQWDWLRQ&ODXVH
LVVXHWRWKH2KLRFRXUWV
7KH SHWLWLRQHU DUJXHV WKDW KH LV HQWLWOHG WR KDEHDV UHOLHI
EHFDXVH KH ZDV GHQLHG WKH HIIHFWLYH DVVLVWDQFH RI WULDO 0F0HDQV ILOHG D QRWLFH RI DSSHDO DQG D SHWLWLRQ IRU
FRXQVHO  7KH VROH HUURU RI WULDO FRXQVHO DVVHUWHG E\ WKH FHUWLILFDWHRIDSSHDODELOLW\7KLVFRXUWFHUWLILHGKLVLQHIIHFWLYH
SHWLWLRQHULVFRXQVHOjVIDLOXUHWRH[HUFLVHXQXVHGSHUHPSWRU\ DVVLVWDQFH RI WULDO FRXQVHO ELDVHG MXURU %UDG\ DQG
FKDOOHQJHV WR UHPRYH WKH WZR DOOHJHGO\ ELDVHG MXURUV &RQIURQWDWLRQ&ODXVHFODLPV
$FFRUGLQJ WR WKH SHWLWLRQHU WKLV LQDFWLRQ E\ FRXQVHO
GHPRQVWUDWHVWKDWmFRXQVHOjVSHUIRUPDQFHIHOOZD\EHORZWKH ,,
REMHFWLYHVWDQGDUGRIUHDVRQDEOHQHVVl7KHSHWLWLRQHUDOVR
PDLQWDLQV WKDW EHFDXVH KLV MXU\ KDG WZR DOOHJHGO\ ELDVHG :LWK HDFK LVVXH SUHVHQWHG E\ WKH SHWLWLRQHU WKH FULWLFDO
PHPEHUVKLVFRQYLFWLRQFDQQRWEHGHHPHGUHOLDEOHDQGKH TXHVWLRQLVZKHWKHUKHFRPPLWWHGSURFHGXUDOGHIDXOWLQWKH
KDVWKHUHIRUHHVWDEOLVKHGmSUHMXGLFHlXQGHUWKH6WULFNODQG 2KLR FRXUWV RQ WKH FODLPV RU WKH SDUWLFXODU DUJXPHQWV KH
VWDQGDUG SUHVHQWV,IWKDWLVWKHFDVHWKHIHGHUDOFRXUWVGRQRWKDYH
MXULVGLFWLRQDEVHQWDVKRZLQJRImFDXVHlDQGmSUHMXGLFHlWR
7RHVWDEOLVKDFODLPIRULQHIIHFWLYHDVVLVWDQFHRIFRXQVHOD FRQVLGHUWKRVHFODLPV0XUUD\Y&DUULHU86
GHIHQGDQW PXVW VKRZ WKDW KLV FRXQVHOjV SHUIRUPDQFH ZDV 
FRQVWLWXWLRQDOO\ GHILFLHQW DQG WKDW FRXQVHOjV GHILFLHQW
SHUIRUPDQFHZDVSUHMXGLFLDO6WULFNODQG86DW,I $
DQDOOHJHGHUURUZDVQRWmSUHMXGLF>LDO@lDIHGHUDOFRXUWQHHG
QRW GHWHUPLQH ZKHWKHU FRXQVHOjV SHUIRUPDQFH ZDV ,QKLVILUVWDVVLJQPHQWRIHUURUWKHSHWLWLRQHUFODLPVKHZDV
FRQVWLWXWLRQDOO\GHILFLHQW6HHLGDW GHQLHGKLVFRQVWLWXWLRQDOULJKWWRFRQIURQWKLVDFFXVHUZLWKKHU
VXEVHTXHQWUDSHDFFXVDWLRQV7KHGLVWULFWFRXUWKHOGWKDWLW
$OWKRXJK WKH SHWLWLRQHU GLG UDLVH D FODLP RI LQHIIHFWLYH FRXOG QRW FRQVLGHU WKH PHULWV RI WKLV FODLP EHFDXVH WKH
DVVLVWDQFHRIWULDOFRXQVHORQGLUHFWDSSHDOKHGLGQRWUHIHUWR SHWLWLRQHUIDLOHGWRmIDLUO\SUHVHQWlLWWRWKH2KLRFRXUWV:H
KLVWULDOFRXQVHOjVGHFLVLRQQRWWRUHPRYHWKHWZRDOOHJHGO\ KROGWKDWWKHGLVWULFWFRXUWGLGQRWHUU
ELDVHGMXURUVDVDQLQVWDQFHRIHUURU+HGLGQRWUHIHUWRWKLV
DOOHJHG HUURU XQWLO KH VXEPLWWHG VXEVHTXHQW PRWLRQV WR WKH 7KHIHGHUDOFRXUWVGRQRWKDYHMXULVGLFWLRQWRFRQVLGHUD
2KLRFRXUWV%\WKDWWLPHWKH2KLRFRXUWVKHOGWKDWWKHLVVXH FODLPLQDKDEHDVSHWLWLRQWKDWZDVQRWmIDLUO\SUHVHQWHGlWR
RIWKHLQHIIHFWLYHQHVVRIWULDOFRXQVHOZDVUHVMXGLFDWD$V WKHVWDWHFRXUWV)UDQNOLQY5RVH)GWK
ZLWKWKHUHVWRIWKHSHWLWLRQHUjVFODLPVZHWKHUHIRUHPD\QRW &LU   $ FODLP PD\ RQO\ EH FRQVLGHUHG mIDLUO\
UHYLHZWKLVDUJXPHQWXQOHVVWKHSHWLWLRQHUFDQGHPRQVWUDWH SUHVHQWHGlLIWKHSHWLWLRQHUDVVHUWHGERWKWKHIDFWXDODQGOHJDO
mFDXVHlDQGmSUHMXGLFHlWRRYHUFRPHKLVSURFHGXUDOGHIDXOW EDVLVIRUKLVFODLPWRWKHVWDWHFRXUWV,GDW7KLVFRXUW
6HH0XUUD\86DW KDV QRWHG IRXU DFWLRQV D GHIHQGDQW FDQ WDNH ZKLFK DUH
VLJQLILFDQW WR WKH GHWHUPLQDWLRQ ZKHWKHU D FODLP KDV EHHQ
7KH SHWLWLRQHU KRZHYHU GRHV QRW SUHVHQW XV ZLWK DQ\ mIDLUO\SUHVHQWHGlUHOLDQFHXSRQIHGHUDOFDVHVHPSOR\LQJ
UHDVRQ ZK\ ZH VKRXOG QRW UHVSHFW WKH DSSOLFDWLRQ RI UHV FRQVWLWXWLRQDO DQDO\VLV  UHOLDQFH XSRQ VWDWH FDVHV
MXGLFDWD E\ WKH 2KLR FRXUWV  $IWHU KDYLQJ WKRURXJKO\ HPSOR\LQJ IHGHUDO FRQVWLWXWLRQDO DQDO\VLV  SKUDVLQJ WKH
UHYLHZHG WKH UHFRUG ZH FRQFOXGH WKDW KH FDQQRW HVWDEOLVK FODLPLQWHUPVRIFRQVWLWXWLRQDOODZRULQWHUPVVXIILFLHQWO\
mSUHMXGLFHlWRH[FXVHKLVSURFHGXUDOGHIDXOW7KHHYLGHQFH SDUWLFXODUWRDOOHJHDGHQLDORIDVSHFLILFFRQVWLWXWLRQDOULJKW
DJDLQVWWKHSHWLWLRQHUZDVERWKVXEVWDQWLDODQGIRUWKHPRVW RU  DOOHJLQJ IDFWV ZHOO ZLWKLQ WKH PDLQVWUHDP RI
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

FRQVWLWXWLRQDOODZ6HHLGDW*HQHUDODOOHJDWLRQVRIWKH 7KURXJKQRIDXOWRIDSSHOODWHFRXQVHOQRWUDQVFULSWRIWKHYRLU
GHQLDO RI ULJKWV WR D mIDLU WULDOl DQG mGXH SURFHVVl GR QRW GLUHSURFHHGLQJVH[LVWHGEHFDXVHWKHSHWLWLRQHUjVWULDOFRXQVHO
mIDLUO\SUHVHQWlFODLPVWKDWVSHFLILFFRQVWLWXWLRQDOULJKWVZHUH ZDLYHGWUDQVFULSWLRQRIWKDWSURFHHGLQJ:HWKLQNWKDWWKH
YLRODWHG3HWUXFHOOLY&RRPEH)GG&LU SHWLWLRQHUFRXOGKDYHVXFFHVVIXOO\DVVHUWHGKLVULJKWWRSURYH
 DFWXDOMXURUELDVRQO\LIWKHUHZDVVRPHFUHGLEOHHYLGHQFHWR
VXSSRUW DQ LQIHUHQFH RI SRWHQWLDO ELDV  7KH SHWLWLRQHUjV
7KHSHWLWLRQHUDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGEHFDXVH DSSHOODWH FRXQVHO KRZHYHU KDG QR VXFK HYLGHQFH
WKH 2KLR &RXUW RI $SSHDOV VWDWHG WKDW mDSSHOODWH FRXQVHO &RQVHTXHQWO\ZHFDQQRWIDXOWKLVGHFLVLRQQRWWRDVVHUWDQ
DVVLJQHG>WKHFRQIURQWDWLRQ@LVVXHDVHUURU>RQGLUHFWDSSHDO@l XQVXEVWDQWLDWHG FODLP RU TXDUUHO ZLWK WKH 2KLR &RXUW RI
ZKHQ WKDW FRXUW UHQGHUHG LWV GHFLVLRQ RQ WKH 0XUQDKDQ $SSHDOVjGHFLVLRQWKDWWKHSHWLWLRQHUUHFHLYHGFRQVWLWXWLRQDOO\
PRWLRQ&LWLQJLOLW\@lRISRVWFRQYLFWLRQ
SURFHVVlDQGKLVULJKWWRDmIDLUWULDOl6HFRQGKHQRWHVWKDW UHOLHIWKH6WDWHRI:DVKLQJWRQFRXOGQRWVXEVHTXHQWO\DUJXH
VRPH RI WKH VWDWH SUHFHGHQW FLWHG LQ KLV DSSHOODWH EULHI SURFHGXUDOGHIDXOWLQWKHIHGHUDOFRXUWV,GDW
FRQWDLQHG DQDO\VLV RI WKH &RQIURQWDWLRQ &ODXVH  7KLUG KH
PDLQWDLQVWKDWWKHSUHFOXVLRQRILQTXLU\LQWRWKHVXEVHTXHQW :HKROGWKDWWKHUHVSRQGHQWLVQRWMXGLFLDOO\HVWRSSHGIURP
UDSHDFFXVDWLRQVVKRXOGKDYHE\LWVHOIDOHUWHGWKH2KLR&RXUW DUJXLQJ SURFHGXUDO GHIDXOW  (YHQ LI ZH ZHUH LQFOLQHG WR
RI $SSHDOV WR D SRVVLEOH YLRODWLRQ RI WKH &RQIURQWDWLRQ IROORZWKH1LQWK&LUFXLWjVPHWKRGRORJ\LQ5XVVHOOZKLFKZH
&ODXVH DUH QRW WKLV FDVH LV GLVWLQJXLVKDEOH  $V QRWHG E\ WKH
UHVSRQGHQWWKHSHWLWLRQHUGLGQRWHYHQUDLVHDMXURUELDVFODLP
7KH SHWLWLRQHU DUJXHV ILQDOO\ WKDW HYHQ LI KLV FODLP LV LQKLVVHFRQGKDEHDVSHWLWLRQDQGWKHUHIRUHWKHUHVSRQGHQW
SURFHGXUDOO\GHIDXOWHGWKLVFRXUWPD\UHYLHZWKHFODLPRQWKH GLGQRWPDNHDQ\PLVUHSUHVHQWDWLRQWKDWWKH2KLRFRXUWVFRXOG
PHULWV EHFDXVH WKH LQHIIHFWLYH DVVLVWDQFH RI KLV DSSHOODWH RU ZRXOG FRQVLGHU WKH MXURU ELDV FODLP LQ D VWDWH
FRXQVHOZDVWKHmFDXVHlRIWKHGHIDXOW&LWLQJXQSXEOLVKHG SRVWFRQYLFWLRQ SURFHHGLQJ  7KXV WKHUH LV QR LQFRQVLVWHQW
RSLQLRQVIURPWKLVFRXUWGHDOLQJZLWKH[DPLQDWLRQLQWRSULRU SRVLWLRQWRZKLFKWKHUHVSRQGHQWPXVWQRZDGKHUH
DFFXVDWLRQV RI UDSH WKH SHWLWLRQHU FRQWHQGV WKDW KLV
&RQIURQWDWLRQ&ODXVHFODLPZDVDmGHDGEDQJZLQQHUlDQGKLV
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

7KHSHWLWLRQHUDUJXHVLQWKHDOWHUQDWLYHWKDWKLVDSSHOODWH DSSRLQWHG FRXQVHO WKHUHIRUH FRPPLWWHG D JURVV HUURU LQ
FRXQVHOjVIDLOXUHWRDVVHUWKLVMXURUELDVFODLPRQGLUHFWDSSHDO IDLOLQJWRDVVHUWLW
LV \HW DQRWKHU LQVWDQFH RI FRQVWLWXWLRQDOO\ LQDGHTXDWH
UHSUHVHQWDWLRQ DOORZLQJ WKLV FRXUW WR H[HUFLVH MXULVGLFWLRQ 7KH UHVSRQGHQW DUJXHV WKDW WKH VWDWHPHQW IURP WKH
RYHUKLVFODLP 0XUQDKDQPRWLRQ RSLQLRQ LV DW EHVW DPELJXRXV DQG
WKHUHIRUH WKLV FRXUW VKRXOG ORRN WR WKH VXEVWDQFH RI WKH
)LQDOO\LWLVWKHSHWLWLRQHUjVWKHRU\WKDWWKHUHVSRQGHQWLV SHWLWLRQHUjVGLUHFWDSSHDO7KHUHVSRQGHQWFRQWHQGVWKDWRQ
MXGLFLDOO\ HVWRSSHG IURP DUJXLQJ SURFHGXUDO GHIDXOW WR WKLV GLUHFWDSSHDOWKHSHWLWLRQHUDUJXHGRQO\WKDWWKHWULDOMXGJH
FRXUW  $FFRUGLQJ WR WKH SHWLWLRQHU ZKHQ WKH UHVSRQGHQW HUURQHRXVO\DSSOLHGWKH2KLRUDSHVKLHOGODZZKHQKHOLPLWHG
PRYHGWRGLVPLVVWKHSHWLWLRQHUjVVHFRQGKDEHDVSHWLWLRQIRU LQTXLU\LQWRWKHVXEVHTXHQWUDSHDFFXVDWLRQV7KHUHVSRQGHQW
IDLOXUHWRH[KDXVWKLVVWDWHUHPHGLHVWKHUHVSRQGHQWDUJXHG DOVRQRWHVWKDWWKHSHWLWLRQHUjVDSSHOODWHEULHIGLGQRWFLWHDQ\
WKDWWKHSHWLWLRQHUKDGQRWSURFHGXUDOO\GHIDXOWHGRQKLVMXURU IHGHUDOSUHFHGHQWDQGWKDWPRVWRIWKHVWDWHFDVHVFLWHGE\WKH
ELDV FODLP  7KH SHWLWLRQHU FRQWHQGV WKDW EHFDXVH WKH SHWLWLRQHUGHDOWVROHO\ZLWK2KLRHYLGHQFHODZ
UHVSRQGHQWPDGHWKLVDOOHJHGDUJXPHQWWRVXSSRUWLWVPRWLRQ
WR GLVPLVV LW VKRXOG QRW EH DOORZHG WR DUJXH SURFHGXUDO $V WR WKH SHWLWLRQHUjV DOWHUQDWLYH DUJXPHQW WKDW WKH
GHIDXOWQRZ LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH FRXQVHO H[FXVHV KLV
SURFHGXUDO GHIDXOW WKH UHVSRQGHQW FRQWHQGV WKDW DSSHOODWH
$V WR WKH SHWLWLRQHUjV FRQWHQWLRQ WKDW WKH LQHIIHFWLYH FRXQVHO PDGH D YDOLG VWUDWHJLF FKRLFH LQ H[FOXGLQJ WKH
DVVLVWDQFH RI KLV DSSHOODWH FRXQVHO H[FXVHV KLV SURFHGXUDO &RQIURQWDWLRQ&ODXVHFODLP
GHIDXOWWKHUHVSRQGHQWDUJXHVWKDWmWKHVWDWHFRXUWVFRUUHFWO\
KHOGWKDWDSSHOODWHFRXQVHOZDVFRQVWLWXWLRQDOO\DGHTXDWH :H DUH RI WKH RSLQLRQ WKDW WKH SHWLWLRQHU GLG QRW mIDLUO\
EHFDXVHWKHUHZHUHUHDVRQDEOHJURXQGVIRUQRWDVVHUWLQJWK>DW@ SUHVHQWlKLVFODLP,QKLVGLUHFWDSSHDOWKHSHWLWLRQHUIRFXVHG
FODLPl DQG WKLV FRXUW VKRXOG GHIHU WR WKDW UXOLQJ  7KH HQWLUHO\RQWKHDSSOLFDELOLW\RI2KLRjVUDSHVKLHOGODZ2KLR
UHVSRQGHQW DOVR PDLQWDLQV WKDW HYHQ LI MXGLFLDO HVWRSSHO 5HY &RGH $QQ †   +H GLG QRW FLWH DQ\ IHGHUDO
VKRXOG DSSO\ LQ WKH VLWXDWLRQ WKH SHWLWLRQHU GHVFULEHV WKH SUHFHGHQW DQG KLV DSSHOODWH EULHI RQO\ DOOHJHV WKDW WKH WULDO
SHWLWLRQHU GLG QRW SUHVHQW D MXURU ELDV FODLP LQ KLV VHFRQG MXGJHjVOLPLWDWLRQRQFURVVH[DPLQDWLRQGHQLHGKLPDmIDLU
KDEHDVSHWLWLRQ7KHUHIRUHDFFRUGLQJWRWKHUHVSRQGHQWLW WULDOl DQG mGXH SURFHVVl  $V WKLV FRXUW UHFRJQL]HG LQ
FRXOG QRW KDYH PDGH DQ\ PLVUHSUHVHQWDWLRQ UHJDUGLQJ WKDW )UDQNOLQWKLVLVQRWVXIILFLHQWWRDOHUWDVWDWHFRXUWWKDWDQ
SDUWLFXODUFODLP DSSHOODQWLVDVVHUWLQJWKHYLRODWLRQRIDVSHFLILFFRQVWLWXWLRQDO
ULJKW:KLOHLWLVWUXHWKDWDIHZRIWKHVWDWHFDVHVFLWHGE\WKH
8QGHUWKH6L[WK$PHQGPHQWDVWDWHGHIHQGDQWLVHQWLWOHG SHWLWLRQHU RQ GLUHFW DSSHDO FRQWDLQ UHIHUHQFHV WR WKH
WREHWULHGE\DQLPSDUWLDOMXU\6HHHJ'HQQLVY8QLWHG &RQIURQWDWLRQ &ODXVH WKH PDMRULW\ RI WKRVH FDVHV ZHUH
6WDWHV  86     $ GHIHQGDQW FRQFHUQHGZLWK2KLRHYLGHQFHODZ:HGRQRWWKLQNWKDWD
PDLQWDLQLQJ MXURU ELDV PXVW EH DIIRUGHG DQ RSSRUWXQLW\ WR IHZEULHIUHIHUHQFHVWRWKH&RQIURQWDWLRQ&ODXVHLQLVRODWHG
SURYHDFWXDOELDV1HYHUVY.LOOLQJHU)GWK FDVHVLVHQRXJKWRSXWVWDWHFRXUWVRQQRWLFHWKDWVXFKDFODLP
&LUFHUWGHQLHG86 KDGEHHQDVVHUWHG7KXVZHKROGWKDWWKHSHWLWLRQHUIDLOHGWR
mIDLUO\SUHVHQWlKLV&RQIURQWDWLRQ&ODXVHFODLPWRWKH2KLR
:HDJDLQKROGWKDWWKH2KLR&RXUWRI$SSHDOVjGHFLVLRQ FRXUWV
WKDWDSSHOODWHFRXQVHOGLGQRWFRPPLWD6WULFNODQGHUURULQ
IDLOLQJ WR DVVHUW WKH SHWLWLRQHUjV MXURU ELDV FODLP ZDV QRW :HDUHQRWSHUVXDGHGWKDWSXUVXDQWWRL@I WKH ODVW VWDWH FRXUW WR EH 2KLRFRXUWjVDSSOLFDWLRQRIWKH6WULFNODQGVWDQGDUGZDVQRW
SUHVHQWHGZLWKDSDUWLFXODUIHGHUDOFODLPUHDFKHVWKHPHULWV mREMHFWLYHO\XQUHDVRQDEOHl6HHLGDW7KH2KLRWULDO
LW UHPRYHV DQ\ EDU WR IHGHUDOFRXUW UHYLHZ WKDW PLJKW MXGJH GLVFORVHG WKH HYLGHQFH RI WKH VXEVHTXHQW UDSH
RWKHUZLVHKDYHEHHQDYDLODEOHlVHHWKHSHWLWLRQHU@FRXOGKDYHDYDLOHGKLPVHOIRIDQLQ
PLVWDNH&RQVHTXHQWO\ZHKROGWKDWWKH0XUQDKDQPRWLRQ FDPHUDKHDULQJlKDGm>KH@ZLVKHGWRSURIIHUHYLGHQFHRIWKH
RSLQLRQKDVQRHIIHFWRQRXUFRQFOXVLRQWKDWWKHSHWLWLRQHUGLG IDOVLW\ RI WKH >VXEVHTXHQW@ DFFXVDWLRQVl  7KH SHWLWLRQHU
QRWmIDLUO\SUHVHQWlKLVFODLPWRWKH2KLRFRXUWV KRZHYHUWRRNQRDFWLRQWRSURYHWRWKHWULDOMXGJHWKDWWKH
VXEVHTXHQWUDSHDFFXVDWLRQVZHUHIDOVH7KXVWKHSHWLWLRQHUjV
:HKROGQH[WWKDWWKHDOOHJHGHUURURIDSSHOODWHFRXQVHOLQ %UDG\ FODLP KDV REYLRXV ZHDNQHVVHV DQG WKHUHIRUH ZH
IDLOLQJ WR UDLVHWKHSHWLWLRQHUjV&RQIURQWDWLRQ&ODXVHFODLP FDQQRWFRQFOXGHWKDWKLVDSSHOODWHFRXQVHOjVVHUYLFHIHOOEHORZ
GRHV QRW FRQVWLWXWH mFDXVHl WR H[FXVH WKH SHWLWLRQHUjV WKDWZKLFKWKH6L[WK$PHQGPHQWGHPDQGV&RQVHTXHQWO\
SURFHGXUDO GHIDXOW  ,Q RUGHU WR VXFFHHG RQ D FODLP RI WKHSHWLWLRQHUIDLOVWRVKRZmFDXVHlWRH[FXVHKLVSURFHGXUDO
LQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHODSHWLWLRQHUPXVW GHIDXOW DQG ZH DIILUP WKH GLVWULFW FRXUWjV KROGLQJ WKDW WKH
VKRZHUURUVVRVHULRXVWKDWFRXQVHOZDVVFDUFHO\IXQFWLRQLQJ IHGHUDOFRXUWVGRQRWKDYHMXULVGLFWLRQWRUHYLHZWKHPHULWVRI
DVFRXQVHODWDOODQGWKDWWKRVHHUURUVXQGHUPLQHWKHUHOLDELOLW\ WKLVFODLP
RIWKHGHIHQGDQWjVFRQYLFWLRQV6WULFNODQGY:DVKLQJWRQ
865XVWY=HQW)GWK &
&LU   6WUDWHJLF FKRLFHV E\ FRXQVHO ZKLOH QRW
QHFHVVDULO\WKRVHDIHGHUDOMXGJHLQKLQGVLJKWPLJKWPDNHGR 7KHSHWLWLRQHUFRQWHQGVWKDWFRQWUDU\WRWKHRSLQLRQRIWKH
QRWULVHWRWKHOHYHORID6L[WK$PHQGPHQWYLRODWLRQsRQHV GLVWULFWFRXUWWKHIHGHUDOFRXUWVKDYHKDEHDVMXULVGLFWLRQWR
Y%DUQHV86:HQRWHWKDWHQ UHYLHZKLVMXURUELDVFODLP,QVXSSRUWRIWKDWFRQWHQWLRQWKH
URXWHWRUHYHUVLQJDQRSLQLRQIURPWKLVFRXUWWKH6XSUHPH SHWLWLRQHU UHDVVHUWV WKH GHQLDO RI KLV DOOHJHG FRQVWLWXWLRQDO
&RXUW KDV UHFHQWO\ UHHPSKDVL]HG WKDW m>Q@RW MXVW DQ\ HQWLWOHPHQWWRVXEPLWDSURVHDSSHOODWHEULHI+HDOVRDUJXHV
GHILFLHQF\LQFRXQVHOjVSHUIRUPDQFHlLVVXIILFLHQWWRH[FXVH DJDLQWKDWWKH2KLR&RXUWRI$SSHDOVFRQVLGHUHGKLVMXURUELDV
SURFHGXUDO GHIDXOW mWKH DVVLVWDQFH PXVW KDYH EHHQ VR FODLP ZKHQ LW KHDUG KLV 0XUQDKDQ PRWLRQ  )RU UHDVRQV
LQHIIHFWLYHDVWRYLRODWHWKH)HGHUDO&RQVWLWXWLRQl(GZDUGV DOUHDG\GLVFXVVHGZHUHMHFWWKRVHDUJXPHQWV
Y&DUSHQWHU6&W
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

KROG WKDW WKH SHWLWLRQHUjV DUJXPHQW ODFNV PHULW DQG KH GLG &RQWUDU\WRWKHSHWLWLRQHUjVDVVHUWLRQVKLV &RQIURQWDWLRQ
SURFHGXUDOO\GHIDXOWRQKLV%UDG\FODLP &ODXVHFODLPLVQRWDmGHDGEDQJZLQQHUl7KHXQSXEOLVKHG
FDVHVFLWHGE\WKHSHWLWLRQHUZKLFKRIFRXUVH KDYHOLPLWHG
5HJDUGLQJ WKH SHWLWLRQHUjV FRQWHQWLRQ WKDW LQHIIHFWLYH SUHFHGHQWLDOIRUFH%RJJVY%ULJDQR1R:/
DVVLVWDQFHRIDSSHOODWHFRXQVHOH[FXVHVKLVSURFHGXUDOGHIDXOW WK&LU$SUDQG/HPPRQY6WDWHRI2KLR
ZHPXVWGHIHUWRWKH2KLR&RXUWRI$SSHDOVjWUHDWPHQWRIWKDW 1R:/WK&LUsDQGRQRW
TXHVWLRQ3XUVXDQWWR86&†GIHGHUDOKDEHDV VWDQG IRU WKH SURSRVLWLRQ WKDW WKH SUHFOXVLRQ RI FURVV
UHYLHZ RI OHJDO LVVXHV GHFLGHG LQ VWDWH FRXUW LV OLPLWHG WR H[DPLQDWLRQLQWRSULRUUDSHDFFXVDWLRQVLVDSHUVHYLRODWLRQ
GHFLGLQJZKHWKHUWKHVWDWHFRXUWGHFLVLRQmZDVFRQWUDU\WRRU RIWKH&RQIURQWDWLRQ&ODXVH0RUHRYHUHYHQLIWKRVHFDVHV
LQYROYHGDQXQUHDVRQDEOHDSSOLFDWLRQRIFOHDUO\HVWDEOLVKHG ZHUH DV VWURQJ DV SHWLWLRQHU PDLQWDLQV ZH QRWH WKDW WKH
)HGHUDO ODZ DV GHWHUPLQHG E\ WKH 6XSUHPH &RXUW RI WKH SHWLWLRQHUjVDSSHOODWHFRXQVHOZRXOGQRWKDYHKDGWKHEHQHILW
8QLWHG 6WDWHVl   86& † G  m>$@ VWDWHFRXUW RIWKDWSUHFHGHQWZKHQKHILOHGWKHSHWLWLRQHUjVDSSHOODWHEULHI
GHFLVLRQLVFRQWUDU\WR>WKH6XSUHPH@&RXUWjVSUHFHGHQWLIWKH LQ,QIDFWZKHQWKHSHWLWLRQHUILOHGKLVGLUHFWDSSHDO
VWDWHFRXUWDUULYHVDWDFRQFOXVLRQRSSRVLWHWRWKDWUHDFKHGE\ WKHUHZDVSUHFHGHQWWRWKHHIIHFWWKDWSUHFOXGLQJLQTXLU\LQWR
WKLV &RXUW RQ D TXHVWLRQ RI ODZl RU LI mWKH VWDWH FRXUW XQUHODWHGUDSHDFFXVDWLRQVGRHVQRWRIIHQGWKH&RQIURQWDWLRQ
FRQIURQWVIDFWVWKDWDUH PDWHULDOO\LQGLVWLQJXLVKDEOHIURPD &ODXVH6HHHJ8QLWHG6WDWHVY%DUWOHWW)G
UHOHYDQW 6XSUHPH &RXUW SUHFHGHQW DQG DUULYHV DW D UHVXOW WK&LU7KHSHWLWLRQHUjVDSSHOODWHFRXQVHO
RSSRVLWHWRRXUVl:LOOLDPVY7D\ORU6&W PD\ZHOOKDYHH[DPLQHGWKHVHFDVHVDQGGHFLGHGWKDWWKHUH
m>$@VWDWHFRXUWGHFLVLRQLQYROYHVDQXQUHDVRQDEOH ZHUHVWURQJHUDUJXPHQWVWKDQWKH&RQIURQWDWLRQ&ODXVHFODLP
DSSOLFDWLRQRI>WKH6XSUHPH@&RXUWjVSUHFHGHQWLIWKHVWDWH 7KXVZKLOHDGLIIHUHQWODZ\HUPLJKWKDYHGRQHRWKHUZLVHWKH
FRXUW LGHQWLILHV WKH FRUUHFW JRYHUQLQJ OHJDO UXOH IURP WKLV GHFLVLRQRIWKHSHWLWLRQHUjVDSSHOODWHFRXQVHOQRWWRDVVHUWKLV
&RXUWjVFDVHVEXWXQUHDVRQDEO\DSSOLHVLWWRWKHIDFWVRIWKH &RQIURQWDWLRQ&ODXVHFODLPZDVQRWXQUHDVRQDEOHDQGDIIRUGV
SDUWLFXODUVWDWHSULVRQHUjVFDVHlRUmLIWKHVWDWHFRXUWHLWKHU QR EDVLV IRU XV WR FRQFOXGH WKDW KH ZDV QRW IXQFWLRQLQJ DV
XQUHDVRQDEO\H[WHQGVDOHJDOSULQFLSOHIURPRXUSUHFHGHQWWR mFRXQVHOl LQ WKH 6L[WK $PHQGPHQW VHQVH 6HH sRQHV 
D QHZ FRQWH[W ZKHUH LW VKRXOG QRW DSSO\ RU XQUHDVRQDEO\ 86DW&RQVHTXHQWO\ZHDUHZLWKRXWMXULVGLFWLRQWR
UHIXVHV WR H[WHQG WKDW SULQFLSOH WR D QHZ FRQWH[W ZKHUH LW UHYLHZWKHPHULWVRIWKHSHWLWLRQHUjVDUJXPHQWV
VKRXOGDSSO\l,GDW7KHVWDWHFRXUWjVGHFLVLRQFDQQRW
EHFRQWUDGLFWHGXQGHUWKHmXQUHDVRQDEOHDSSOLFDWLRQlSURQJ %
RI VHFWLRQ G XQOHVV WKDW FRXUWjV GHFLVLRQ LV
mREMHFWLYHO\XQUHDVRQDEOHl6HHLGDW 7KHSHWLWLRQHUDUJXHVQH[WWKDWWKHGLVWULFWFRXUWHUUHGZKHQ
LWKHOGWKDWKHSURFHGXUDOO\GHIDXOWHGRQKLV%UDG\FODLP7KH
7KHSHWLWLRQHUGRHVQRWDUJXHWKDWWKHSURVHFXWLRQIDLOHGWR SHWLWLRQHUSUHVHQWVWKUHHSXUSRUWHGIODZVLQWKHGLVWULFWFRXUWjV
GLVFORVH H[FXOSDWRU\ HYLGHQFH  5DWKHU WKH SHWLWLRQHU SURFHGXUDOGHIDXOWKROGLQJ)LUVWKHSURSRVHVWKDWWKHUHH[LVWV
PDLQWDLQVWKDWKLVDSSHOODWHFRXQVHOVKRXOGKDYHDUJXHGWKDW D FRQVWLWXWLRQDO ULJKW WR VXEPLW D SUR VH DSSHOODWH EULHI RQ
GLVFORVXUHZDVXQWLPHO\7KH2KLR&RXUWRI$SSHDOVKHOG GLUHFWDSSHDO,WLVWKHSHWLWLRQHUjVWKHRU\WKDWWKHGHQLDORI
WKDWDSSHOODWHFRXQVHOjVGHFLVLRQQRWWRUDLVHWKLVDUJXPHQW WKLVDOOHJHGULJKWFRQVWLWXWHVmFDXVHlWRH[FXVHKLVSURFHGXUDO
ZDVQRWDQHUURUVRJURVVDVWRDPRXQWWRD6L[WK$PHQGPHQW GHIDXOW
YLRODWLRQ%HFDXVHWKLVSDUWLFXODUFDVHRIDOOHJHGLQHIIHFWLYH
DVVLVWDQFH RI DSSHOODWH FRXQVHO LV QRW mPDWHULDOO\ 6HFRQGWKHSHWLWLRQHUDUJXHVWKDWKHLPSOLFLWO\SUHVHQWHG
LQGLVWLQJXLVKDEOHIURPDUHOHYDQW6XSUHPH&RXUWSUHFHGHQWl KLV%UDG\FODLPLQKLV0XUQDKDQPRWLRQ+HDVVHUWVWKDW
 0F0HDQVY%ULJDQR 1R 1R 0F0HDQVY%ULJDQR 

ZKHQWKH2KLR&RXUWRI$SSHDOVUXOHGRQWKHVXEVWDQFHRIKLV ,QVWDWHFULPLQDOSURFHHGLQJVWKHSURVHFXWLRQLVREOLJDWHG
LQHIIHFWLYHDVVLVWDQFHRIDSSHOODWHFRXQVHOFODLPWKDWFRXUW XQGHUWKH'XH3URFHVV&ODXVHRIWKH)RXUWHHQWK$PHQGPHQW
KDGWRDQDO\]HWKHPHULWVRIKLV%UDG\FODLP WR GLVFORVH HYLGHQFH WKDW LV IDYRUDEOH WR WKH DFFXVHG DQG
mµPDWHULDOWRJXLOWRUSXQLVKPHQWjl8QLWHG6WDWHVY
7KLUGWKHSHWLWLRQHUFRQWHQGVWKDWWKHLQHIIHFWLYHDVVLVWDQFH %DJOH\  86    FLWDWLRQ RPLWWHG
RIKLVDSSHOODWHFRXQVHOHVWDEOLVKHVmFDXVHlDQGmSUHMXGLFHl (YLGHQFHLVmPDWHULDOlLImWKHUHLVDUHDVRQDEOHSUREDELOLW\
VXIILFLHQWWRRYHUFRPHKLVSURFHGXUDOGHIDXOW:LWKKHDY\ WKDWKDGWKHHYLGHQFHEHHQGLVFORVHGWRWKHGHIHQVHWKHUHVXOW
UHOLDQFHRQ8QLWHG6WDWHVY0LQVN\)GWK&LU RI WKH SURFHHGLQJ ZRXOG KDYH EHHQ GLIIHUHQWl  ,G DW 
WKHSHWLWLRQHUDUJXHVWKDWWKHSURVHFXWLRQLVUHTXLUHGWR :KHUHDVWDWHSURWHFWVWKHFRQILGHQWLDOLW\RIUHFRUGVSUHSDUHG
GLVFORVHH[FXOSDWRU\HYLGHQFHLQDIDVKLRQWLPHO\HQRXJKWR E\FKLOGSURWHFWLRQDJHQFLHVDVGRHVWKH6WDWHRI2KLRWKH
DOORZ GHIHQVH LQYHVWLJDWLRQ LQWR WKH VXEVWDQFH RI WKRVH 6XSUHPH&RXUWKDVKHOGWKDWGHIHQVHFRXQVHOKDVQRULJKWWR
DFFXVDWLRQV$FFRUGLQJWRWKHSHWLWLRQHUWKHGLVFORVXUHRIWKH LQVSHFWWKRVHUHFRUGV3HQQV\OYDQLDY5LWFKLH86
VXEVHTXHQWUDSHDFFXVDWLRQVRQWKHVHFRQGGD\RIWULDOZDV ,QVWHDGLWLVVXIILFLHQWIRUWKHWULDOMXGJHWRLQVSHFW
SODLQO\XQWLPHO\DQGLWZDVDJURVVHUURUIRUKLVFRXQVHOQRWWR WKHUHFRUGVLQFDPHUDDQGGLVFORVHDQ\H[FXOSDWRU\HYLGHQFH
DVVHUWVXFKDQDOOHJHGO\REYLRXVFODLP FRQWDLQHGWKHUHLQ,GDW*HQHUDOO\H[FXOSDWRU\HYLGHQFH
PXVWEHSURGXFHGE\WKHSURVHFXWLRQmLQWLPHIRUHIIHFWLYHXVH
7KHUHVSRQGHQWPDLQWDLQVWKDWWKHSUHVHQWDWLRQRIWKH%UDG\ DWWULDOl0LQVN\)GDW
FODLP LQ WKH SUR VH DSSHOODWH EULHI GRHV QRW H[FXVH WKH
SHWLWLRQHUjVSURFHGXUDOGHIDXOW$FFRUGLQJWRWKHUHVSRQGHQW 7KH 6XSUHPH &RXUW KDV KHOG WKDW D GHIHQGDQW KDV QR
WKH2KLR&RXUWRI$SSHDOVJDYHWKHSHWLWLRQHUWKHRSWLRQRI FRQVWLWXWLRQDO ULJKW WR UHSUHVHQW KLPVHOI RQ GLUHFW DSSHDO
GLVPLVVLQJ KLV DSSHOODWH FRXQVHO DQG UHO\LQJ RQ WKH FODLPV 0DUWLQH]Y&RXUWRI$SSHDORI&DOLIRUQLD6&W
SUHVHQWHG LQ KLV EULHI DQ RSWLRQ WKH SHWLWLRQHU mPDGH WKH &OHDUO\WKLVKROGLQJFRQWUDGLFWVWKHSHWLWLRQHUjV
FRQVLGHUHGGHFLVLRQlQRWWRH[HUFLVH DVVHUWLRQ WKDW WKHUH H[LVWV D FRQVWLWXWLRQDO HQWLWOHPHQW WR
VXEPLWDSURVHDSSHOODWHEULHIRQGLUHFWDSSHDOLQDGGLWLRQWR
7KHUHVSRQGHQWDUJXHVQH[WWKDW0F0HDQVSUHVHQWHGRQO\ WKHEULHIVXEPLWWHGE\DSSRLQWHGFRXQVHO7KXVZHUHMHFWWKH
DQ LQHIIHFWLYH DVVLVWDQFH RI DSSHOODWH FRXQVHO FODLP LQ KLV SHWLWLRQHUjV DUJXPHQW WKDW WKH 2KLR &RXUW RI $SSHDOVj
0XUQDKDQPRWLRQ&LWLQJ3LFDUGY&RQQRU86 GHFLVLRQ WR VWULNH KLV SUR VH EULHI FRQVWLWXWHV mFDXVHl WR
  WKH UHVSRQGHQW DUJXHV WKDW DVVHUWLQJ RQH H[FXVHKLVSURFHGXUDOGHIDXOW
FRQVWLWXWLRQDOFODLPWKDWVKDUHVDFRPPRQIDFWXDOSUHGLFDWH
ZLWKDQRWKHULVQRWDVXIILFLHQWSUHVHQWDWLRQRIWKHODWWHUWR :HDUHDOVRQRWSHUVXDGHGE\WKHSHWLWLRQHUjVDUJXPHQWWKDW
H[FXVHDSUHYLRXVSURFHGXUDOGHIDXOW WKH2KLR&RXUWRI$SSHDOVFRQVLGHUHGWKHPHULWVRIKLV%UDG\
FODLPZKHQLWKHDUGKLV0XUQDKDQPRWLRQ,WFDQQRWEHWKH
)LQDOO\WKHUHVSRQGHQWFRQWHQGVWKDWLQFDVHVVXFKDVWKLV FDVHWKDWE\PHUHO\DVVHUWLQJVHYHUDODOOHJHGFRQVWLWXWLRQDO
DVWDWHFRPSOLHVZLWKLWVGXW\WRGLVFORVHH[FXOSDWRU\HYLGHQFH YLRODWLRQVZKLFKDSSHOODWHFRXQVHOIDLOHGWRUDLVHWRDVWDWH
LI WKH WULDO MXGJH UHYLHZV D FRQILGHQWLDO ILOHLQ FDPHUD DQG FRXUWWKHIHGHUDOFRXUWVKDYHKDEHDVMXULVGLFWLRQWRFRQVLGHU
GLVFORVHV DQ\ H[FXOSDWRU\ HYLGHQFH WKHUHLQ DW VRPH SRLQW WKHPHULWVRIHDFKDOOHJHGHUURU  ,IWKDWZHUHWKHFDVHWKH
GXULQJWKHWULDO$FFRUGLQJWRWKHUHVSRQGHQWWKHWULDOMXGJH UHTXLUHPHQW WKDW D KDEHDV SHWLWLRQHU mIDLUO\ SUHVHQWl KLV
GLG MXVW WKDW DW WKH SHWLWLRQHUjV WULDO DQG WKHUHIRUH WKH FRQVWLWXWLRQDO FODLPV WR WKH VWDWH FRXUWV ZRXOG EH
SHWLWLRQHUjVDSSHOODWHFRXQVHOPDGHWKHUHDVRQDEOHFKRLFHQRW PHDQLQJOHVV6HH)UDQNOLQ)GDW:HWKHUHIRUH
WRSUHVHQWDmIHFNOHVVlFODLPRQGLUHFWDSSHDO