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$0(6 '2$1 ; 3HWLWLRQHU$SSHOODQW 1R Y ! $17+21< s %5,*$12 5HVSRQGHQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL 1R n6XVDQs'ORWW'LVWULFWsXGJH $UJXHG 2FWREHU 'HFLGHGDQG)LOHG sDQXDU\ %HIRUH 68+5+(,15,&+DQG0225(&LUFXLWsXGJHV ('081'6'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 7HUHVD/&XQQLQJKDP)ORUHQFH.HQWXFN\IRU $SSHOODQW .DWKHULQH ( 3ULGHPRUH $66,67$17 2+,2 $77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 7KH +RQRUDEOH 1DQF\ * (GPXQGV 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ 'RDQY%ULJDQR 1R 6(&7,21 &LQFLQQDWL 2KLR IRU $SSHOOHH 21 %5,() 7HUHVD/&XQQLQJKDP)ORUHQFH.HQWXFN\IRU$SSHOODQW .DWKHULQH(3ULGHPRUH$66,67$172+,2$77251(< *(1(5$/ &255(&7,216 /,7,*$7,21 6(&7,21 &LQFLQQDWL2KLRIRU$SSHOOHH 0225(sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK ('081'6'sMRLQHG68+5+(,15,&+s SS GHOLYHUHGDVHSDUDWHRSLQLRQFRQFXUULQJLQWKHUHVXOW BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(1 1(/621 0225( &LUFXLW sXGJH 3HWLWLRQHU $SSHOODQWsDPHV'RDQDQ2KLRSULVRQHUFRQYLFWHGRIPXUGHU DQGFKLOGHQGDQJHUPHQWDSSHDOVWKHGLVWULFWFRXUWjVGHQLDORI KLVSHWLWLRQIRUDZULWRIKDEHDVFRUSXVSXUVXDQWWR86& 'RDQUDLVHGVHYHUDOFODLPVLQKLVKDEHDVSHWLWLRQ DOOHJLQJERWKMXURUDQGSURVHFXWRULDOPLVFRQGXFWDVZHOODV HUURUVE\WKHWULDOFRXUWLQMXU\LQVWUXFWLRQVVHQWHQFLQJDQG IDLOLQJWRJUDQWFRQWLQXDQFHVWRWKHGHIHQVHVRDVWRUHWDLQDQ H[SHUW ZLWQHVV 7KH GLVWULFW FRXUW KHOG WKDW 'RDQ KDG SURFHGXUDOO\ GHIDXOWHG DOO RI KLV FODLPV H[FHSW IRU FHUWDLQ DOOHJDWLRQVRIMXURUPLVFRQGXFWDQGIXUWKHUKHOGWKDWLWZDV EDUUHG IURP UHYLHZLQJ WKH UHPDLQLQJ PLVFRQGXFW FODLP EHFDXVH WKH VWDWH FRXUWjV MXGJPHQW GLVSRVLQJ RI WKH FODLP UHVWHGRQ2KLR(YLG5 % DQDGHTXDWHDQGLQGHSHQGHQW VWDWH JURXQG $V SDUW RI LWV RUGHU GHQ\LQJ 'RDQjV KDEHDV SHWLWLRQWKHGLVWULFWFRXUWJUDQWHGDFHUWLILFDWHRIDSSHDODELOLW\ ZLWK UHVSHFW WR RQH LVVXH mZKHWKHU WKH 6WDWH FRXUWVj DSSOLFDWLRQ RI 2KLR 5 (YLG % LQ WKLV FDVH GHSULYHG SHWLWLRQHURIDIDLUWULDO>@lsRLQW$SSHQGL[ ms$l DW '&W2UGHU'HQ+DEHDV 7KLVFRXUWZLOOOLPLWLWVUHYLHZ WRWKDWTXHVWLRQ)RUWKHUHDVRQVVHW IRUWKEHORZZHKROG WKDWZKLOHWKHDSSOLFDWLRQRI2KLR(YLG5 % YLRODWHG 'RDQjV6L[WK$PHQGPHQWULJKWWRFRQIURQWWKHHYLGHQFHDQG WKHZLWQHVVHVSUHVHQWHGDJDLQVWKLPDVZHOODVKLVULJKWWRD MXU\ WKDW FRQVLGHUV RQO\ WKH HYLGHQFH SUHVHQWHG DW WULDO DQ H[KDXVWLYHUHYLHZRIWKHWULDOUHFRUGFRQFOXVLYHO\VKRZVWKDW 1R 'RDQY%ULJDQR 'RDQZDVQRWSUHMXGLFHGE\WKLVFRQVWLWXWLRQDOHUURU7KXV ZH $)),50 WKH GLVWULFW FRXUWjV GHQLDO RI 'RDQjV KDEHDV SHWLWLRQEXWRQJURXQGVGLIIHUHQWIURPWKRVHRQZKLFKWKH GLVWULFWFRXUWUHOLHG ,%$&.*5281' sDPHV'RDQILUVWPHWKLVJLUOIULHQG&DWKHULQH%HLVHOHDUO\ LQ $SSUR[LPDWHO\WZRPRQWKVODWHU'RDQPRYHGLQ ZLWK%HLVHODQGKHUWZRFKLOGUHQ2YHUWKHFRXUVHRIWKHILYH PRQWKV LQ ZKLFK 'RDQ UHVLGHG ZLWK %HLVHO KH UHJXODUO\ EDE\VDW IRU KHU FKLOGUHQ LQ WKH HYHQLQJV ZKLOH VKH ZDV DW ZRUN %HLVHO ZRUNHG DV D EDUWHQGHU DQG JHQHUDOO\ GLG QRW DUULYHKRPHXQWLODIWHU DP %HLVHOjV \RXQJHVW FKLOG ILIWHHQPRQWKROG 6WDU +ROOLQJVZRUWKKDGEHHQVHYHUHO\LQMXUHGVHYHUDOWLPHVGXULQJ WKHPRQWKVLQZKLFK'RDQOLYHGZLWK%HLVHODQGKHUFKLOGUHQ ,Q$XJXVW RQDQHYHQLQJWKDW'RDQZDVZDWFKLQJWKH FKLOGUHQ6WDUVXIIHUHGDmJRRGVL]HlEUXLVHWRWKHVLGHRIKHU MDZZKHQVKHDOOHJHGO\IHOORIIDFKDLU 7ULDO7UDQVFULSWDW $OVRLQ$XJXVW6WDUjVJUDQGPRWKHU6KLUOH\%HLVHO QRWLFHG VHYHUH EXUQV RQ WKH ERWWRP RI 6WDUjV IHHW 7KH JUDQGPRWKHUXUJHGKHUGDXJKWHUWRVHHNPHGLFDODWWHQWLRQIRU 6WDUjV EXUQV \HW KHU GDXJKWHU UHIXVHG VWDWLQJ VKH ZDV mIULJKWHQHGl 7UDW 2QWKHHYHQLQJRI6HSWHPEHU 'RDQDORQJZLWK WKHFKLOGUHQGURYH%HLVHOWRZRUNDWDSSUR[LPDWHO\ SP $VKHRIWHQGLG'RDQORRNHGDIWHUWKHFKLOGUHQE\KLPVHOI WKDW HYHQLQJ %HLVHO DUULYHG KRPH RQ WKH PRUQLQJ RI 6HSWHPEHUDW DPDQG'RDQZKRKDGEHHQVOHHSLQJ XQWLO VKH DUULYHG LQIRUPHG KHU WKDW 6WDU KDG EHHQ LOO WKDW HYHQLQJZDVYRPLWLQJDQGKDGEXUQHGKHUVHOILQWKHEDWKWXE %HLVHOZHQWWRFKHFNRQ6WDURQO\WRILQGWKHFKLOGGHDGLQKHU FULE%HLVHOWKHQFDOOHGIRUHPHUJHQF\DVVLVWDQFH #010703.08 WR WKH WULDO WUDQVFULSW ZLOO KHUHLQDIWHU EH FLWHG DV m7U DWl 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR 3DUDPHGLFV DUULYHG RQ WKH VFHQH VKRUWO\ WKHUHDIWHU )LUH RU D EUXLVH RI KHU RZQ RU KHU SDLQWHG OLSV LQ WKH MXURUVj GHSDUWPHQW SHUVRQQHO RQ WKH VFHQH QRWHG D ODUJH VHFRQG EDWKURRPPLUURU GHJUHHEXUQRQ6WDUjVIDFHDQGLPPHGLDWHO\VXVSHFWHGFKLOG DEXVH7KH&LQFLQQDWL3ROLFHZHUHQRWLILHGDUULYHGRQWKH ,QRWKHUZRUGVsXURU$ZDVVLPSO\WU\LQJWRYHULI\'RDQjV VFHQH DQG EURXJKW 'RDQ WR WKH +RPLFLGH 'HSDUWPHQW IRU WHVWLPRQ\ WKDW KH GLG QRW VHH DQ\ RI 6WDUjV EUXLVHV RQ WKH TXHVWLRQLQJ'RDQZDVUHDGKLV0LUDQGDULJKWVYHUEDWLPIURP HYHQLQJ RI KHU GHDWK EHFDXVH WKH EDWKURRP DQG DGMRLQLQJ D VWDQGDUG &LQFLQQDWL 3ROLFH IRUP DQG KH VLJQHG WKH IRUP URRPVZHUHGDUNEDVHGRQKHURZQH[SHULHQFH7KHIDFWWKDW VWDWLQJ WKDW KH XQGHUVWRRG KLV ULJKWV %HIRUH EHLQJ VKH FRQILUPHG KHU EHOLHI WKDW 'RDQjV WHVWLPRQ\ ZDV IDOVH LQWHUYLHZHGE\KRPLFLGHLQYHVWLJDWRUV'RDQZDVDJDLQUHDG EDVHGRQKHURZQSHUVRQDOREVHUYDWLRQGRHV QRWVRPHKRZ KLVULJKWVIURPWKHVDPHIRUPDQGDJDLQKHVLJQHGWKHIRUP WUDQVPRJULI\KHUDFWLQWRDQmH[SHULPHQWlDVWKDWWHUPLVXVHG LQGLFDWLQJWKDWKHXQGHUVWRRGKLVULJKWV LQWKHVFLHQWLILFZRUOG,QVKRUW,GRQRWWKLQNWKDWWKH2KLR FRXUWVj DSSOLFDWLRQ RI 2KLR 5 (YLG 5 % HIIHFWLYHO\ 'XULQJWKHRIILFHUVjTXHVWLRQLQJ'RDQILUVWVWDWHGWKDWKH GHQLHG'RDQWKHRSSRUWXQLW\WRVKRZDYLRODWLRQRIKLV6L[WK GURYHWKHFKLOGUHQVWUDLJKWKRPHDIWHUGURSSLQJ%HLVHORIIDW DQG)RXUWHHQWK$PHQGPHQWULJKWVWRFRQIURQWZLWQHVVHVDQG ZRUNDQGWKDWKHWKHQSODFHG6WDULQKHUEHGZKLOHKHFDUHG HYLGHQFHDJDLQVWKLP IRU6RSKLD%HLVHOj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sDPHV *ROG )HGHUDO 3UDFWLFH DQG 3URFHGXUH WKHEDWKURRPDVZHOODVWKHVXUURXQGLQJURRPVZHUHVRGDUN $IWHU DOO m>W@KH MXU\ LV WKH FRXUWURRP WKDWKHGLGQRWQRWLFHDQ\EUXLVHVRURWKHULQMXULHVRQ6WDUjV HPERGLPHQWRIWKRVHGHPRFUDWLFLGHDOVFHQWUDOWR$PHULFDQ ERG\ZKHQKHSODFHGKHULQWKHWXE'RDQWXUQHGRQWKHZDWHU VRFLDO DQG SROLWLFDO OLIHl )HGHUDO 3UDFWLFH 3URFHGXUH LQWKHWXEDQGVWDWHGWKDWKHOHIWWKHGDUNHQHGEDWKURRPZLWK VXSUD7KHH[FHSWLRQIRUmRXWVLGHLQIOXHQFHlPXVWWKHUHIRUH WKHZDWHUUXQQLQJIRUDSSUR[LPDWHO\RQHWRWZRPLQXWHVVRDV EHFDUHIXOO\DQGVWULQJHQWO\DSSOLHGVRDVWRQRWXQGHUPLQHWKH WRFOHDQXSWKHVRIDRQO\WRKHDU6WDUVFUHDPDQGWKHQKHDU MXU\jVLPSRUWDQWUROHLQRXUMXGLFLDOV\VWHP WZRmERRPVlDVVKHIHOOLQWKHWXE 7UDW ,WKHUHIRUHFRQFXULQWKHUHVXOW 'RDQ VWDWHG WKDW KH WKHQ UXVKHG LQWR WKH EDWKURRP DQG GLVFRYHUHG6WDUO\LQJRQKHUEDFNLQWKHWXEZLWKZDWHUIURP WKHWXEj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o WKH VWDWH FRXUW $IWHUKLVLQLWLDOVWDWHPHQWWKHSROLFHRIILFHUVLQWHUYLHZLQJ GHFLVLRQPXVWEHmFRQWUDU\WRFOHDUO\HVWDEOLVKHG)HGHUDO 'RDQUHVSRQGHGVNHSWLFDOO\WRKLVH[SODQDWLRQRIKRZ6WDU ODZ DV GHWHUPLQHG E\ WKH 6XSUHPH &RXUW RI WKH 8QLWHG KDGEHHQEXUQHG LQWKHWXE'RDQWKHQFKDQJHGKLVVWRU\ 6WDWHVl 86& G , WKHUHIRUH WKLQN WKH DGPLWWLQJWKDWKHPD\KDYHGRQHVRPHWKLQJWKDWFRXOGKDYH PDMRULW\KDVH[FHHGHGLWVDXWKRULW\RQKDEHDVUHYLHZ KXUWKHU'RDQVWDWHGWKDWDIWHUDUULYLQJKRPHIURPGURSSLQJ RII%HLVHODWZRUNKHSODFHG6WDULQDJUDVV\DUHDQH[WWRWKH ,DOVRGLVDJUHHZLWKWKHPDMRULW\jVFRQFOXVLRQWKDWsXURU$ FDUZKLOHKHUHWULHYHGVRPHRIKLVWKLQJVDQGWKDWKHSUREDEO\ LQWURGXFHGH[WUDQHRXVPDWHULDOsXURU$jVH[SHULPHQWLVQRW SLFNHG KHU XS WRR IDVW RII RI WKH JURXQG 'RDQ WROG WKH OLNH WKH RXWRIFRXUW MXURU H[SHULPHQWV DW LVVXH LQ ,Q UH RIILFHUVWKDWZKHQKHSLFNHGKHUXSKHUERG\mIROGHGXSlDQG %HYHUO\+LOOV)LUH/LWLJDWLRQ )G WK&LU WKDWZKHQKHWKUHZKHURYHUKLVVKRXOGHUWKLVmFDXVHGKHU ZKHUHWKHMXURUH[DPLQHGKLVRZQDOXPLQXPZLULQJ ERG\DQGKHDGWRVQDSl 7UDW DQGFRQQHFWLRQVLQKLVKRPHIROORZLQJWHVWLPRQ\UHJDUGLQJ DOXPLQXP ZLULQJ ,W LV HTXDOO\ XQOLNH WKH H[WUDQHRXV 'RDQDGPLWWHGWRVKDNLQJWKHEDE\ERWKEHIRUHDQGDIWHU LQIRUPDWLRQ LQWURGXFHG LQ 8QLWHG 6WDWHV H[ UHO 2ZHQ Y VKHZDVEXUQHGLQWKHWXEEHFDXVHKHUFU\LQJZDVJHWWLQJRQ 0F0DQQ)G G&LU ZKHUHVHYHUDOMXURUV KLVQHUYHVDQGWRVWULNLQJKHULQWKHDEGRPHQZLWKDmNDUDWH WROGRWKHUMXURUVDERXWWKHGHIHQGDQWjVEDGKLVWRU\ZKLFKRI FKRSl W\SH EORZ s$ DW )ROORZLQJ WKHVH FRXUVH ZDV LQDGPLVVLEOH HYLGHQFH LQ DQ\ HYHQW RU WKH DGPLVVLRQV 'RDQ DOORZHG WKH SROLFH RIILFHUV WR PDNH DQ H[SHULPHQW RQ WKH )RUG SLFNXS WUXFN FRQGXFWHG DW D ORFDO DXGLR WDSH RI KLV VWDWHPHQW VR KH DJDLQ ZHQW WKURXJK KLV )RUGGHDOHUVKLSDWLVVXHLQ'XUUY&RRN )G DFFRXQWRIZKDWKDSSHQHGWKDWQLJKW$WWKLVSRLQWLQWLPH WK&LU sXURU$jVmH[SHULPHQWlZDVUHDOO\QRWKLQJ 'RDQUHIXVHGWRWDNHUHVSRQVLELOLW\IRUWKHEXUQ6WDUDOOHJHGO\ PRUHWKDQDYHULILFDWLRQRIKHURZQH[SHULHQFHDQGSHUVRQDO UHFHLYHGLQWKHEDWKWXE REVHUYDWLRQ WKDW EUXLVHV FDQ EH VHHQ LQ GLPPHG OLJKWLQJ $IWHU DOO sXURU $ PHUHO\ ORRNHG DW KHU RZQ ERG\ LQ GLP /DWHUWKLVVDPHPRUQLQJ'RDQZDVDJDLQTXHVWLRQHGWKLV OLJKWLQJ$OWKRXJKVKHXVHGOLSVWLFNWRVLPXODWHWKHEUXLVH WLPH E\ 3ROLFH 6SHFLDOLVW 'DYLG )HOGKDXV ZKR KDG EHHQ VKHFRXOGMXVWKDYHHDVLO\ORRNHGDWKHUSROLVKHGILQJHUQDLOV GLVSDWFKHG WR WKH KRVSLWDO WR H[DPLQH 6WDUjV LQMXULHV )HOGKDXVWROG'RDQWKDWKHKDGREVHUYHG6WDUjVEXUQDQGWKDW LWZDVQRWFRQVLVWHQWZLWKEHLQJVSODVKHGE\UXQQLQJZDWHU 'RDQWKHQDGPLWWHGWKDWKHMXVWZDQWHG6WDUWRVWRSFU\LQJVR KHSRXUHGKRWZDWHURQWKHEDE\jVIDFHXVLQJDFXS2IILFHU )HOGKDXVWKHQFDOOHGLQWKHRWKHURIILFHUVZKRKDGLQWHUYLHZHG UHDVRQDEOH SUREDELOLW\ WKDW WKH UHVXOW ZRXOG KDYH EHHQ GLIIHUHQW 6HH LG 7KDW LV WKH VWDWH FRXUW RSLQLRQ ZRXOG EH mFRQWUDU\ WRl 6XSUHPH &RXUW SUHFHGHQW EHFDXVH LW DSSOLHG D GLIIHUHQW OHJDO UXOH 'RDQ HDUOLHU DQG 'RDQ DJDLQ DJUHHG WR WDSH D VWDWHPHQW 2WKHU WKDQ SURYLGLQJ D JHQHULF SURSRVLWLRQ WKDW D GHIHQGDQW KDV D UHSHDWLQJIRUWKHPZKDWKHKDGWROG2IILFHU)HOGKDXV FRQVWLWXWLRQDO ULJKW WR FRQIURQW WKH HYLGHQFH DQG WKH ZLWQHVVHV DJDLQVW KLP WKH PDMRULW\ IDLOV WR H[SODLQ KRZ WKH VWDWH FRXUWjV UXOLQJ LQ WKLV FDVH $ORQJ ZLWK WKH VHFRQGGHJUHH EXUQ RQ KHU IDFH 6WDUjV LV mFRQWUDU\ WRl D OHJDO UXOH IURP D SDUWLFXODU 6XSUHPH &RXUW FDVH DXWRSV\UHYHDOHGPXOWLSOHFRQWXVLRQVDQGKHPRUUKDJLQJWRWKH KHDGQHFNWRQJXHWKRUD[DEGRPHQDUPVOHJVYDJLQDDQG ,QGHHG LW FDQQRW GR VR EHFDXVH WKH 6XSUHPH &RXUW KDV QRW PDGH D OHJDO UXOLQJ LQ D FDVH VLPLODU WR WKH VFHQDULR SUHVHQWHG KHUH ZKLFK LQYROYHV D PL[HG TXHVWLRQ RI ODZ DQG IDFW UHFWXP ([DPLQHUV DOVR GLVFRYHUHG VHYHUDO VNXOO DQG 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR YHUWHEUDOIUDFWXUHVDQGDODFHUDWLRQRIWKHGXRGHQXP'U sXURU$jVVWDWXVDVDMXURUEHDUVOLWWOHUHVHPEODQFHWRWKH sRKQ *HUEHU WKH SDWKRORJLVW ZKR FRQGXFWHG 6WDUjV SRVW RIILFLDOFKDUDFWHURI WKHEDLOLIILQ3DUNHU,WZDVWKHUHIRUH PRUWHP H[DPLQDWLRQ GHWHUPLQHG WKH FDXVH RI GHDWK WR EH LPSRVVLEOHIRUWKH2KLR&RXUWRI$SSHDOVWRKDYHUHDFKHGD mPXOWLSOHERGLO\WUDXPDl 7UDW UHVXOWRSSRVLWHWR6XSUHPH&RXUWSUHFHGHQWRQDFDVHZLWK mPDWHULDOO\LQGLVWLQJXLVKDEOHlIDFWV7KHPDMRULW\j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jV LQDSSURSULDWH FRPPHQWV DQG DOVR E\ D QHZVSDSHU XQGHU 2KLR 5HY &RGH DQG RQH FRXQW RI FKLOG DUWLFOH 7KH 0DWWR[ FRXUW KHOG WKDW m>S@ULYDWH HQGDQJHUPHQWXQGHU2KLR5HY&RGH FRPPXQLFDWLRQV SRVVLEO\ SUHMXGLFLDO EHWZHHQ MXURUV DQG WKLUG SHUVRQV RU ZLWQHVVHV RU WKH RIILFHU LQ FKDUJH DUH )ROORZLQJ'RDQjVFRQYLFWLRQKLVDWWRUQH\LQWHUYLHZHGWKH DEVROXWHO\IRUELGGHQDQGLQYDOLGDWHWKHYHUGLFWDWOHDVWXQOHVV MXURUV2QHMXURUWRZKRPZHZLOOUHIHUDVmsXURU$lWROG WKHLUKDUPOHVVQHVVLVPDGHWRDSSHDUl,GDW$JDLQWKH GHIHQVHFRXQVHOWKDWIROORZLQJ'RDQjVWHVWLPRQ\WKDWKHGLG H[WUDQHRXV DQG SUHMXGLFLDO LQIRUPDWLRQ ZDV LQWURGXFHG E\ QRW VHH DQ\ RI 6WDUjV EUXLVHV RQ WKH HYHQLQJ RI KHU GHDWK H[WHUQDOVRXUFHVLQFOXGLQJDQmRIILFHULQFKDUJHl6HHLGDW EHFDXVHWKHEDWKURRPDQGWKHDGMRLQLQJURRPVZHUHVRGDUN $JDLQ DOWKRXJK DQ DQDORJ\ PD\ EH PDGH LW VLPSO\ sXURU$FRQGXFWHGDQH[SHULPHQWLQKHURZQKRPHGXULQJWKH FDQQRW EH VDLG WKDW WKH 2KLR FRXUW LJQRUHG 6XSUHPH &RXUW WULDOWRVHHLIKHZDVWHOOLQJWKHWUXWKsXURU$SXWOLSVWLFNRQ SUHFHGHQWZLWKmPDWHULDOO\LQGLVWLQJXLVKDEOHlIDFWV KHU DUP WR VLPXODWH D EUXLVH DQG DWWHPSWHG WR YLHZ WKH mEUXLVHlLQDURRPOLWVLPLODUO\WRWKHURRPVWKDW6WDUZDVLQ WKDWHYHQLQJ7KHH[SHULPHQWFRQILUPHGKHUEHOLHIWKDWRQH FRXOGVHHEUXLVHVLQVXFKOLJKWLQJDQGVKHWKHQWROGDGHIHQVH +DYLQJ IDLOHG WR HVWDEOLVK WKDW WKH 2KLR FRXUWV DUULYHG DW D UHVXOW WHDPLQYHVWLJDWRUWKDWVKHKDGmLQIRUPHGRWKHUPHPEHUVRI GLIIHUHQW IURP 6XSUHPH &RXUW SUHFHGHQW RQ PDWHULDOO\ LQGLVWLQJXLVKDEOH WKHMXU\RIKHUH[SHULPHQWGXULQJGHOLEHUDWLRQVls$DW IDFWV WKH PDMRULW\ LQ D IRRWQRWH QRZ FODLPV WKDW m>U@HJDUGOHVV RI DQ\ IDFWXDO GLIIHUHQFHV WKH VWDWH FRXUWjV XVH RI 2KLR (YLG 5 % LQ 'HH$II sXURU$DOVRVWDWHGWKDWGXULQJGHOLEHUDWLRQVVKH WKLV FDVH µFRQWUDGLFWV WKH JRYHUQLQJ ODZ VHW IRUWK LQj 6XSUHPH &RXUW ORRNHGXSWKHGHILQLWLRQVRImSXUSRVHIXOlDQGmLQWHQWlLQD SUHFHGHQW UHFRJQL]LQJ WKH IXQGDPHQWDO LPSRUWDQFH RI 'RDQjV GLFWLRQDU\mLQRUGHUWRFODULI\>KHU@ XQGHUVWDQGLQJRIWKRVH FRQVWLWXWLRQDO ULJKW WR FRQIURQW WKH HYLGHQFH DQG WKH ZLWQHVVHV DJDLQVW ZRUGVl s$ DW sXURU $ PHPRULDOL]HG WKHVH KLPl $JDLQ WKH PDMRULW\ LV PLVDSSO\LQJ :LOOLDPV 7KH mFRQWUDGLFWV WKH VWDWHPHQWVLQDVZRUQDIILGDYLW JRYHUQLQJ ODZl ODQJXDJH LQ :LOOLDPV PXVW EH UHDG LQ FRQMXQFWLRQ ZLWK WKH SULQFLSOH LW LV H[SODLQLQJ WKDW mD VWDWHFRXUW GHFLVLRQ LV FRQWUDU\ WR WKLV %HIRUH VHQWHQFLQJ 'RDQ ILOHG D PRWLRQ IRU D QHZ WULDO &RXUWjV SUHFHGHQW LI WKH VWDWH FRXUW DUULYHV DW D FRQFOXVLRQ RSSRVLWH WR WKDW SXUVXDQW WR 2KLR 5 &ULP 3 DOOHJLQJ LQ SDUW MXURU UHDFKHG E\ WKLV &RXUW RQ D TXHVWLRQ RI ODZl :LOOLDPV Y 7D\ORU 6 &W :LOOLDPV HYHQ SURYLGHG DQ LOOXVWUDWLRQ :LOOLDPV H[SODLQHG WKDW LI D VWDWH FRXUW UHMHFWHG D SULVRQHUjV FODLP RI LQHIIHFWLYH DVVLVWDQFH RI FRXQVHO RQ WKH JURXQGV WKDW WKH SULVRQHU KDG QRW HVWDEOLVKHG &DWKHULQH %HLVHO ZDV FKDUJHG ZLWK LQYROXQWDU\ PDQVODXJKWHU DULVLQJ E\ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW WKH RXWFRPH ZRXOG KDYH EHHQ RXW RI WKH GHDWK RI KHU GDXJKWHU DQG ZDV WR EH SURVHFXWHG VHSDUDWHO\ GLIIHUHQW VXFK D GHFLVLRQ ZRXOG EH mFRQWUDU\ WRl 6XSUHPH &RXUW IROORZLQJ 'RDQjV WULDO SUHFHGHQW EHFDXVH 6WULFNODQG KHOG WKDW WKH SULVRQHU QHHG RQO\ GHPRQVWUDWH 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR BBBBBBBBBBBBBBBBBBBBBB PLVFRQGXFW7KHWULDOFRXUWGHQLHGWKHPRWLRQ'RDQZDV WKHQVHQWHQFHGWRILIWHHQ\HDUVWROLIHIRUPXUGHUDQGILYHWR &21&855(1&( ILIWHHQ\HDUVIRUFKLOGHQGDQJHUPHQWZLWKWKHVHQWHQFHVWREH BBBBBBBBBBBBBBBBBBBBBB VHUYHGFRQVHFXWLYHO\ 68+5+(,15,&+&LUFXLWsXGJHFRQFXUULQJ,FRQFXULQ 7KH2KLR&RXUWRI$SSHDOVDIILUPHGKLVFRQYLFWLRQ7KH WKHUHVXOWUHDFKHGLQWKLVFDVH,ZULWHVHSDUDWHO\EHFDXVH, FRXUWVWDWHGWKDWZKLOHsXURU$jVmFRQGXFWZDVLPSURSHUDQG WKLQN WKH PDMRULW\ KDV LJQRUHG WKH PDQGDWH RI 86& PD\ZHOOKDYHEHHQSUHMXGLFLDOWRDSSHOODQW>@l2KLR(YLG5 G DQG:LOOLDPVY7D\ORU6&W % GLFWDWHG WKDW WKH MXURUjV SRVWWULDO DIILGDYLW ZDV , DJUHH WKDW WKH mXQUHDVRQDEOH DSSOLFDWLRQl SURQJ RI LQDGPLVVLEOHHYLGHQFHWKDWFRXOGQRWEHXVHGDVDEDVLVIRU G GRHVQRWJRYHUQRXUDQDO\VLVEHFDXVHWKHVWDWH JUDQWLQJDQHZWULDO6WDWHY'RDQ1R& :/ FRXUWGLGQRWLGHQWLI\mFOHDUO\HVWDEOLVKHG)HGHUDOODZl,GR DW 2KLR&W$SS6HSW 7KH6XSUHPH QRWDJUHHKRZHYHUWKDWWKH2KLR&RXUWRI$SSHDOVjVGHFLVLRQ &RXUW RI 2KLR GHQLHG 'RDQjV GHOD\HG DSSHDO ZKLFK ZDV ZDV mFRQWUDU\ WRl WR FOHDUO\ HVWDEOLVKHG 6XSUHPH &RXUW SHQGLQJ EHIRUH WKH FRXUW DV D mGLVFUHWLRQDU\ DSSHDO DQG D SUHFHGHQWDVRIWKHWLPHRILWVGHFLVLRQ FODLPHGDSSHDORIULJKWls$DW $VWKHPDMRULW\QRWHV:LOOLDPVH[SODLQHGWKDWmFRQWUDU\l 'RDQWKHQILOHGDSHWLWLRQIRUKDEHDVFRUSXVUHOLHILQWKH PHDQV mGLDPHWULFDOO\ GLIIHUHQW RSSRVLWH LQ FKDUDFWHU RU 8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH6RXWKHUQ'LVWULFWRI2KLR QDWXUHRUPXWXDOO\RSSRVHGlLGDW )XUWKHUIRUDVWDWH 7KHGLVWULFWFRXUWGHQLHG'RDQjVSHWLWLRQIRUDZULWRIKDEHDV FRXUWjV GHFLVLRQ WR EH mFRQWUDU\ WRl HVWDEOLVKHG 6XSUHPH FRUSXVKROGLQJWKDW'RDQKDGSURFHGXUDOO\GHIDXOWHGDOORI &RXUWSUHFHGHQWLWPXVWmDUULYH>@DWDFRQFOXVLRQRSSRVLWHWR KLV KDEHDV FODLPV H[FHSW IRU WKH MXURU PLVFRQGXFW FODLP WKDWUHDFKHGE\WKLV&RXUWRQDTXHVWLRQRIODZ>@lRUUHDFKDQ LQYROYLQJ sXURU $ 7KH FRXUW WKHQ VWDWHG WKDW WKH MXURU RSSRVLWH FRQFOXVLRQ LQ D FDVH ZLWK mPDWHULDOO\ PLVFRQGXFW FODLP ZDV EDUUHG EHFDXVH WKH 2KLR &RXUW RI LQGLVWLQJXLVKDEOHlIDFWV,G7KHFDVHVWKHPDMRULW\FLWHVLQ $SSHDOV KDG UHOLHG RQ DQ DGHTXDWH DQG LQGHSHQGHQW VWDWH VXSSRUWRILWVDQDO\VLVDUHQRWWKDW3DUNHUY*OLGGHQ JURXQG2KLR(YLG5 % LQGLVSRVLQJRIWKHFODLP7KH 86 SHUFXULDP LQYROYHGSUHMXGLFLDOFRPPHQWV GLVWULFWFRXUWFRQFOXGHGWKDWZKLOHLWGLGQRWWKLQNWKDW2KLR E\DEDLOLIIWRWKHMXU\&HQWUDOWRWKH&RXUWjVKROGLQJWKDWWKH (YLG5 % GHQLHG'RDQjVFRQVWLWXWLRQDOULJKWWRDIDLU GHIHQGDQWjV6L[WKDQG)RXUWHHQWK$PHQGPHQWULJKWVKDGEHHQ WULDODFHUWLILFDWHRIDSSHDODELOLW\VKRXOGEHLVVXHGVROHO\RQ YLRODWHGZDVWKHmWKHRIILFLDOFKDUDFWHURIWKHEDLOLIIDVDQ WKHTXHVWLRQRImZKHWKHUWKH6WDWHFRXUWVjDSSOLFDWLRQRI2KLR RIILFHURIWKHFRXUWDVZHOODVWKH6WDWHl,GDW,QWKH 5 (YLG % LQ WKLV FDVH GHSULYHG SHWLWLRQHU RI D IDLU &RXUWjV YLHZ mWKH XQDXWKRUL]HG FRQGXFW RI WKH EDLOLII WULDO>@ls$DW '&W2UGHU'HQ+DEHDV 'RDQWKHQ LQYROYHVVXFKDSUREDELOLW\WKDWSUHMXGLFHZLOOUHVXOWWKDWLWLV DSSHDOHGWKHGLVWULFWFRXUWjVGHFLVLRQWRWKLVFRXUW GHHPHG LQKHUHQWO\ ODFNLQJ LQ GXH SURFHVVl ,G LQWHUQDO TXRWDWLRQPDUNVRPLWWHG ,,$1$/<6,6 $3URFHGXUDO'HIDXOW ,W LV ZHOO VHWWOHG WKDW D IHGHUDO FRXUW PD\ QRW DEVHQW D 7KH &RXUW DOVR HPSKDVL]HG WKH IDFW WKDW WKH MXU\ GHOLEHUDWHG IRU VKRZLQJ RI HLWKHU FDXVH DQG SUHMXGLFH RU D IXQGDPHQWDO WZHQW\VL[ KRXUV LQGLFDWLQJ D GLIIHUHQFH RI RSLQLRQ UHJDUGLQJ WKH SHWLWLRQHUjV JXLOW DQG WKDW RQH RI WKH MXURUV WHVWLILHG WKDW VKH ZDV PLVFDUULDJH RI MXVWLFH mUHYLHZ D TXHVWLRQ RI IHGHUDO ODZ SUHMXGLFHG E\ WKH EDLOLIIjV FRPPHQWV 6HH LG DW GHFLGHGE\DVWDWHFRXUWLIWKHGHFLVLRQRIWKDWFRXUWUHVWVRQ 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR DVWDWHODZJURXQGWKDWLVLQGHSHQGHQWRIWKHIHGHUDOTXHVWLRQ ,,,&21&/86,21 DQG DGHTXDWH WR VXSSRUW WKH MXGJPHQW 7KLV UXOH DSSOLHV ZKHWKHUWKHVWDWHODZJURXQGLVVXEVWDQWLYHRUSURFHGXUDOl )RU WKH IRUHJRLQJ UHDVRQV ZH KROG WKDW ZKLOH WKH 2KLR &ROHPDQY7KRPSVRQ86 FLWDWLRQV FRXUWVjDSSOLFDWLRQRI2KLR(YLG5 % SUHYHQWHG'RDQ RPLWWHG ,QLWVRUGHUGHQ\LQJ'RDQKDEHDVUHOLHIWKHGLVWULFW IURPDVVHUWLQJKLVFRQVWLWXWLRQDOULJKWWRDIDLUWULDODQGZKLOH FRXUW KHOG WKDW LW ZDV EDUUHG IURP UHYLHZLQJ 'RDQjV sXURU $jV SUHVHQWDWLRQ RI KHU RXWRIFRXUW H[SHULPHQW ZDV FRQVWLWXWLRQDO FODLP EHFDXVH WKH 2KLR &RXUW RI $SSHDOVjV FRQVWLWXWLRQDO HUURU WKLV HUURU ZDV KDUPOHVV 7KXV ZH GHFLVLRQGLVSRVLQJRIWKHFODLPZDVEDVHGRQ2KLR(YLG5 $)),50 WKH GLVWULFW FRXUWjV MXGJPHQW GHQ\LQJ 'RDQjV % DQDGHTXDWHDQGLQGHSHQGHQWVWDWHJURXQG2QDSSHDO SHWLWLRQIRUDZULWRIKDEHDVFRUSXV WKH:DUGHQDUJXHVWKDWWKHSURFHGXUDOGHIDXOWGRFWULQHEDUV IHGHUDOKDEHDVUHYLHZRI'RDQjVIHGHUDOFRQVWLWXWLRQDOFODLP EHFDXVH WKH VWDWH MXGJPHQW UHVWV RQ DQ DGHTXDWH DQG LQGHSHQGHQWVWDWHJURXQGLH2KLR(YLG5 % :HFRQFOXGHWKDW2KLR(YLG5 % FDQQRWVHUYHDVDQ DGHTXDWHEDVLVIRUWKHVWDWHFRXUWjVGHFLVLRQLQWKLVFDVHXQGHU WKHDGHTXDWHDQGLQGHSHQGHQWVWDWHJURXQGGRFWULQH$VWDWH FRXUWjV GHFLVLRQ RQ D TXHVWLRQ RI VWDWH ODZ LV DGHTXDWH WR VXSSRUW LWV MXGJPHQW RQO\ LI WKH mVWDWH ODZ EDVLV IRU WKH GHFLVLRQ LV VXIILFLHQW E\ LWVHOI WR VXSSRUW WKH MXGJPHQW UHJDUGOHVV RI ZKHWKHU WKH IHGHUDO ODZ LVVXH LV DIILUPHG RU UHYHUVHGl(UZLQ&KHPHULQVN\)HGHUDOsXULVGLFWLRQ DW GHG ,QWKLVFDVHKRZHYHUZKHWKHU2KLR (YLG 5 % LV VXIILFLHQW WR VXSSRUW WKH VWDWH FRXUW RI DSSHDOVjVMXGJPHQWFOHDUO\GHSHQGVXSRQZKHWKHUWKH5XOH FRQIOLFWVZLWKWKHJXDUDQWHHVRIWKH86&RQVWLWXWLRQ7KH 6XSUHPDF\&ODXVHVWDWHVWKDWWKHm&RQVWLWXWLRQVKDOOEH WKHVXSUHPH/DZRIWKH/DQG DQGWKHsXGJHVLQHYHU\6WDWH VKDOOEHERXQGWKHUHE\DQ\7KLQJLQWKH&RQVWLWXWLRQRU/DZV RIDQ\6WDWHWRWKH&RQWUDU\QRWZLWKVWDQGLQJl86&RQVW DUW9,FO,I2KLR(YLG5 % LVFRQWUDU\WRWKH86 &RQVWLWXWLRQLWPD\QRWVHUYHDVWKHEDVLVIRUWKHVWDWHFRXUW RIDSSHDOVjVMXGJPHQW7KXVm>V@WDWHODZREYLRXVO\LVQRW DGHTXDWHWRVXSSRUWWKHUHVXOWZKHQWKHUHLVDFODLPWKDWWKH VWDWH ODZ LWVHOI YLRODWHV WKH 8QLWHG 6WDWHV &RQVWLWXWLRQl &KHPHULQVN\VXSUDDW 2QHH[DPSOHRIWKLVSURSRVLWLRQLVWKH6XSUHPH&RXUWFDVH RI6WDXEY&LW\RI%D[OH\86 ,Q 6WDXEDXQLRQRUJDQL]HUZDVFRQYLFWHGXQGHUDFLW\RUGLQDQFH 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR ,QDGGLWLRQZHDJDLQVHHLQFRQVLVWHQF\LQ'RDQj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mEULJKWUHGOLNHDVXQEXUQl 7UDW VWDWH FRXUW RI DSSHDOV UHIXVHG WR DGGUHVV KHU FRQVWLWXWLRQDO FODLPVKROGLQJWKDWKHUIDLOXUHWRVHHNDSHUPLWLQDFFRUGDQFH )LQDOO\WKH6WDWHLQLWVFORVLQJDUJXPHQWGLVFXVVHGDQRWKHU ZLWKFLW\ODZSUHYHQWHGKHUIURPUDLVLQJ KHUFRQVWLWXWLRQDO IXQGDPHQWDOSUREOHPZLWK'RDQjVVWRU\'RDQVWDWHVWKDWKH FODLPV RQ DSSHDO ,G DW 2Q DSSHDO WR WKH 86 KHDUG WZR ERRPV DV 6WDU DOOHJHGO\ IHOO LQ WKH EDWKWXE 6XSUHPH &RXUW WKH &LW\ DUJXHG WKDW WKH DSSHDO VKRXOG EH $SSDUHQWO\'RDQZRXOGKDYHWKHMXU\EHOLHYHWKDWWKHVHWZR GLVPLVVHGIRUODFNRIMXULVGLFWLRQEHFDXVHWKHVWDWHFRXUWRI ERRPVUHVXOWHGLQWKHWZRPDMRUFRQWXVLRQVRQ6WDUjVKHDG DSSHDOVGHFLVLRQmZDVEDVHGXSRQVWDWHSURFHGXUDOJURXQGV @l,GDW H[DPLQDWLRQQRWHGWKDWWKHWZRFRQWXVLRQVZHUHRQRSSRVLWH 7KH6XSUHPH&RXUWGLVDJUHHGKROGLQJWKDWWKHUHZDVQR VLGHVRIWKHEDFNRIWKHFKLOGjVKHDG7KXV'RDQZRXOGKDYH DGHTXDWHVWDWHJURXQGIRUWKHVWDWHFRXUWRIDSSHDOVGHFLVLRQ WKHMXU\EHOLHYHWKDWWKHFKLOGIHOOWZLFHLQUDSLGVXFFHVVLRQ ,GDW7KH&RXUWKHOGWKDWDVWDWHFRXUWjVUHOLDQFHRQDQ ZKLOHDWWHPSWLQJWRFOLPEXSLQWKHWXEDQGDGMXVWWKHIDXFHW XQFRQVWLWXWLRQDO RUGLQDQFH FDQQRW VHUYH DV DQ DGHTXDWH KDQGOHV7KHVNXOOIUDFWXUHVKRZHYHUDUHLQFRQVLVWHQWZLWK JURXQGIRULWVMXGJPHQWVWDWLQJWKDWRWKHUZLVHWKHXVHRI IDOOLQJLQWKHWXEDQGWKHVHFRQGGHJUHHEXUQLVLQFRQVLVWHQW mSODLQO\ XQWHQDEOHl VWDWH JURXQGV ZRXOG DOORZ VWDWH FRXUWV ZLWKEHLQJVSODVKHGE\KRWZDWHU HIIHFWLYHO\WRDYRLG6XSUHPH&RXUWUHYLHZRIFRQVWLWXWLRQDOO\ LPSHUPLVVLEOH UHVXOWV ,G DW LQWHUQDO TXRWDWLRQ 7KXVLQOLJKWRI'RDQjVRZQWDSHGFRQIHVVLRQVWKDWZHUH RPLWWHG DGPLWWHGLQWRHYLGHQFHGHVFULELQJLQGHWDLOWKHYLROHQWDFWV WKDW KH FRPPLWWHG DJDLQVW 6WDU WKH VHULRXV LQFRQVLVWHQFLHV sXVWDVLQ6WDXEWKH:DUGHQFDQQRWSXWIRUWK2KLR(YLG5 EHWZHHQ'RDQjVWHVWLPRQ\DQGWKHPHGLFDOHYLGHQFHDQGWKH % DV DQ DGHTXDWH DQG LQGHSHQGHQW EDVLV IRU WKH VWDWH FOHDULQFRQVLVWHQFLHVLQ'RDQjVWHVWLPRQ\LWVHOIZHKROGWKDW FRXUWGHFLVLRQWKXVDYRLGLQJ6XSUHPH&RXUWUHYLHZZKHQ WKHMXU\jVFRQVLGHUDWLRQRIDMXURUjVRXWRIFRXUWH[SHULPHQW WKHYHU\DSSOLFDWLRQRIWKDWHYLGHQFHUXOHLVDOOHJHGWRSUHYHQW WHVWLQJ WKH FUHGLELOLW\ RI 'RDQ ZDV KDUPOHVV HUURU 7KH 'RDQIURPHYHUVKRZLQJWKDWKLVIHGHUDOFRQVWLWXWLRQDOULJKW EXUGHQLQWKLVDQDO\VLVLVRQWKHKDEHDVSHWLWLRQHUDQGKHKDV WRDIDLUDQGLPSDUWLDOMXU\WKDWFRQVLGHUVVROHO\WKHHYLGHQFH IDLOHGWRVKRZWKDWWKHMXURUPLVFRQGXFWmKDG>D@VXEVWDQWLDO SUHVHQWHGWRLWDWWULDOZDVYLRODWHG7RKROGRWKHUZLVHZRXOG DQG LQMXULRXV HIIHFW RU LQIOXHQFH LQ GHWHUPLQLQJ WKH MXU\jV DOORZDVWDWHDQGLWVFRXUWVWRHYDGHWKHUHTXLUHPHQWVRIWKH YHUGLFW>@l1HYHUV )GDW,QVWHDGWKHVLJQLILFDQW 8QLWHG 6WDWHV &RQVWLWXWLRQ DQ\ WLPH WKH\ FKRVH WR DSSO\ D KROHVDQGLQFRQVLVWHQFLHVLQ'RDQjVWHVWLPRQ\VKRZWKDWWKH VWDWH SURFHGXUDO UXOH UHJDUGOHVV RI ZKHWKHU WKDW VWDWH UXOH MXURUH[SHULPHQWUHJDUGLQJKHUDELOLW\WRVHHOLSVWLFNRQKHU FRPSOLHG ZLWK IHGHUDO FRQVWLWXWLRQDO JXDUDQWHHV 7KH DUP LQ D GDUNHQHG URRP ZRXOG QRW VXEVWDQWLDOO\ DIIHFW RU 6XSUHPDF\&ODXVHIRUELGVDVWDWHIURPXVLQJDVWDWHUXOHWR LQIOXHQFH WKH MXU\jV YLHZ WKDW 'RDQ ZDV QRW D FUHGLEOH WUXPS WKH IXQGDPHQWDO UHTXLUHPHQWV RI WKH 8QLWHG 6WDWHV ZLWQHVVQRUZRXOGLWVLPLODUO\DIIHFWRULQIOXHQFHWKHMXU\jV &RQVWLWXWLRQ86&RQVWDUW9,FO XOWLPDWHYHUGLFW7KXVKDEHDVUHOLHIFDQQRWEHJUDQWHG 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR )XUWKHUPRUH WKH 2KLR &RXUW RI $SSHDOV GLG QRW QHJOHFW ,PPHGLDWHO\ WKHUHDIWHU KRZHYHU 'RDQ FKDQJHG KLV VWRU\ 'RDQjVFRQVWLWXWLRQDOFODLPEHFDXVHKHKDGIDLOHGWREULQJLW 5DWKHUWKDQEHLQJDEOHWRVHH6WDUjVYRPLW'RDQWHVWLILHGWKDW WRWKHFRXUWjVDWWHQWLRQ5DWKHU'RDQH[SOLFLWO\UDLVHGWKH KHNQHZVKHKDGYRPLWHGEHFDXVHKHFRXOGKHDUKHUYRPLWLQJ FRQVWLWXWLRQDO DUJXPHQW LQ KLV EULHI WR WKH 2KLR &RXUW RI 'RDQDGPLWWHGWKDWWKLVZDVWKHILUVWWLPHKHKDGHYHUWROG $SSHDOV\HWWKDWFRXUWVLPSO\IDLOHGWRDGGUHVVLWDSSDUHQWO\ DQ\RQHWKLVYHUVLRQRIWKHHYHQWVRIWKDWHYHQLQJ 7UDW KROGLQJ WKDW 2KLR (YLG 5 % UHQGHUHG 'RDQjV FRQVWLWXWLRQDODUJXPHQWLPPDWHULDO6HH$SSHOODQWjV%UWR 2KLR &W $SS DW m7KH 6L[WK $PHQGPHQW WR WKH 'RDQWHVWLILHGWKDWDIWHUXQGUHVVLQJ6WDUKHWKHQWRRNKHU &RQVWLWXWLRQRIWKH8QLWHG6WDWHVDQG$UWLFOH,6HFWLRQRI LQWRWKHEDWKURRPWRJLYHKHUDEDWK$VZLWKRWKHUURRPVLQ WKH2KLR&RQVWLWXWLRQUHTXLUHWKDWHYHU\SHUVRQFKDUJHGZLWK WKHKRXVH'RDQWHVWLILHGWKDWLWZDVWRRGDUNLQWKHEDWKURRP DFULPHVKDOOKDYHDIDLUWULDOEHIRUHDQLPSDUWLDOMXU\7KH WRVHHLIVKHKDGDQ\EUXLVHV'RDQVWDWHGWKDWKHWXUQHGWKH MXU\jVYHUGLFWPXVWEHEDVHGVROHO\XSRQHYLGHQFHSUHVHQWHG ZDWHURQLQWKHWXEDQGOHIWWKHFKLOGVLWWLQJLQWKHEDWKWXELQ DWWULDOl 6LQFHWKH:DUGHQjVFODLPRISURFHGXUDOGHIDXOW WKHmYHU\GDUNlEDWKURRPZKLOHKHZHQWWRFOHDQXSWKHYRPLW EDVHGRQDQDGHTXDWHDQGLQGHSHQGHQWVWDWHJURXQGIDLOVZH RQ WKH VRID 7U DW 'RDQ WHVWLILHG WKDW ZKLOH PXVWUHYLHZ'RDQjVIHGHUDOFRQVWLWXWLRQDOFODLP FOHDQLQJXSWKHVRIDKHKHDUG6WDUVFUHDPDQGWKHQKHDUGWZR mERRPVlDVVKHIHOOLQWKHWXE 7UDW 8SRQUXVKLQJ %'RDQjV5LJKWWRD)DLU7ULDO LQWRWKHEDWKURRP'RDQWHVWLILHGWKDWKHVDZ6WDUO\LQJRQKHU EDFNDQGWKDWKRWZDWHUIURPWKHWXEjVIDXFHWZDVVWULNLQJKHU 6WDQGDUGRI5HYLHZ IDFH'RDQWRRNKHURXWRIWKHWXEDQGFRXOGVHHWKDWVKHKDG EXUQHGKHUIDFH2QWKHQLJKWLQTXHVWLRQ'RDQWROGERWKILUH :KHQUHYLHZLQJWKHGLVWULFWFRXUWjVGLVSRVLWLRQRIDKDEHDV ILJKWHUVDQGSROLFHRIILFHUVWKDW6WDUPXVWKDYHFOLPEHGXS FRUSXV SHWLWLRQ SXUVXDQW WR 86& WKLV FRXUW DQGDGMXVWHGWKHIDXFHWKDQGOHV UHYLHZVWKHGLVWULFWFRXUWjVOHJDOFRQFOXVLRQVGHQRYR6HH 'H/LVOH Y 5LYHUV )G WK &LU HQ 7KHUHDUHVHYHUDOSUREOHPVZLWK'RDQjVH[SODQDWLRQRIKRZ EDQF FHUWGHQLHG86 8QGHU 6WDULQFXUUHGERWKKHUKHDGLQMXULHVDQGKHUVHFRQGGHJUHH KDEHDVUHOLHIPD\QRWEHJUDQWHGZLWKUHVSHFWWRDQ\FODLP EXUQ)LUVWDPHGLFDOH[SHUWWHVWLILHGDWWULDOWKDWWKHEXUQRQ DGMXGLFDWHG RQ WKH PHULWV LQ VWDWH FRXUW XQOHVV WKH 6WDUjVIDFHZDVQRWFRQVLVWHQWZLWKWKHVSODVKLQJRUVSODWWHULQJ DGMXGLFDWLRQ RIZDWHUDQGWKDWWKHUHZDVDFOHDUOLQHRIGHPDUFDWLRQRQKHU IDFHEHWZHHQZKHUHWKHUHZDVDQGZDVQRWDEXUQ1RUZDV UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU WKHUHDQLQGLFDWLRQRIUHFHQWVFDOGLQJRQDQ\RWKHUSDUWRIKHU LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ ERG\ 6HFRQG WKH VDPH H[SHUW WHVWLILHG WKDW WKH VNXOO HVWDEOLVKHG)HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH IUDFWXUHVZKLFKZHUHFRQVLVWHQWZLWKWKHFRQWXVLRQVRQ6WDUjV &RXUWRIWKH8QLWHG6WDWHV RU KHDGZRXOGQRWKDYHRFFXUUHGIURPDIDOOLQWKHWXE UHVXOWHG LQ D GHFLVLRQ WKDW ZDV EDVHG RQ DQ XQUHDVRQDEOH GHWHUPLQDWLRQ RI WKH IDFWV LQ OLJKW RI WKH HYLGHQFHSUHVHQWHGLQWKH6WDWHFRXUWSURFHHGLQJ 86& G 4 %XW \RX ZHUH DEOH WR VHH YRPLW DW WKDW SRLQW DQG MXVW WKH DTXDULXP OLJKW RQ" $ @DWD WKH QLJKW KH WXUQHG WKH EHGURRP OLJKW RQ DQG QRWLFHG WKDW FRQFOXVLRQ RSSRVLWH WR WKDW UHDFKHG E\ WKLV &RXUW RQ D 6WDU ZKR ZDV VWLOO IXOO\ FORWKHG KDG YRPLWHG LQ KHU EHG TXHVWLRQ RI ODZ>@l RU LW PXVW IDFH D VHW RI IDFWV WKDW DUH 'RDQ SLFNHG KHU XS DQG FDUULHG KHU LQWR WKH OLYLQJ URRP mPDWHULDOO\LQGLVWLQJXLVKDEOHIURPDUHOHYDQW6XSUHPH&RXUW ZKHUHKHODLGKHUGRZQRQWKHVRID'RDQVWDWHGLQLWLDOO\WKDW SUHFHGHQWlDQGVWLOODUULYHDWDQRSSRVLWHUHVXOW,G$VWDWH KH VDZ KHU YRPLW DJDLQ RQ WKH VRID DQG KH WKHQ WRRN KHU FRXUWmXQUHDVRQDEO\DSSOL>HV@lFOHDUO\HVWDEOLVKHG6XSUHPH FORWKHV RII VR KH FRXOG JLYH KHU D EDWK 2Q FURVV &RXUW SUHFHGHQW ZKHQ LW FRUUHFWO\ LGHQWLILHV WKH JRYHUQLQJ H[DPLQDWLRQ'RDQVWDWHGWKDWWKHOLYLQJURRPZDVWRRGDUNWR OHJDO SULQFLSOH LQ WKH FDVH \HW LW XQUHDVRQDEO\ DSSOLHV WKDW VHHLIVKHKDGEUXLVHVRQKHUERG\\HWKHDGPLWWHGWKDWKHZDV SULQFLSOHWRWKHIDFWVRIWKHGHIHQGDQWjVFDVH,GDW$ DEOHWRVHHKHUYRPLWRQWKHVRID7KHSURVHFXWLQJDWWRUQH\ VWDWH FRXUW DOVR XQUHDVRQDEO\ DSSOLHV 6XSUHPH &RXUW SRLQWHGRXWVHYHUDORIWKHPDMRUFRQWXVLRQVRQ6WDUjVERG\ SUHFHGHQW ZKHQ LW mXQUHDVRQDEO\ H[WHQGV D OHJDO SULQFLSOH DQG'RDQVWDWHGWKDWKHFRXOGQRWVHHDQ\RIWKRVHEUXLVHV IURPRXUSUHFHGHQWWRDQHZFRQWH[WZKHUHLWVKRXOGQRWDSSO\ HYHQDIWHUKHKDGWDNHQKHUFORWKHVRII1HYHUWKHOHVV'RDQ RU XQUHDVRQDEO\ UHIXVHV WR H[WHQG WKDW SULQFLSOH WR D QHZ VWLOO EULHIO\ PDLQWDLQHG WKDW KH FRXOG VHH KHU YRPLW FRQWH[W ZKHUH LW VKRXOG DSSO\l ,G 7KH :LOOLDPV &RXUW IXUWKHUVWDWHGWKDWDIHGHUDOKDEHDVFRXUWPD\QRWRYHUWXUQD VWDWHFRXUWjVGHFLVLRQVLPSO\EHFDXVHLWEHOLHYHVWKDWDVWDWH 0RUH VSHFLILFDOO\ ZH QRWH WKH IROORZLQJ H[FKDQJH EHWZHHQ WKH FRXUW DSSOLHG 6XSUHPH &RXUW SUHFHGHQW LQFRUUHFWO\ ,G DW 6WDWHjV DWWRUQH\ DQG 'RDQ RQ 'RDQjV FURVVH[DPLQDWLRQ ,QVWHDGWKHVWDWHFRXUWjVDSSOLFDWLRQRI6XSUHPH&RXUW 4 $QG ZKHQ \RX WRRN KHU FORWKHV RII RI KHU ZKDW GLG \RX SUHFHGHQWPXVWDOVREHREMHFWLYHO\XQUHDVRQDEOH,GDW VHH" $ , GLG QRW VHH QRWKLQJ EHFDXVH LW ZDV SUHWW\ PXFK GDUN LQ WKHUH , GLGQjW ZDQW WR WXUQ WKH OLJKWV RQ EHFDXVH 6RSKLD ZDV LQ EHG ,QDQDO\]LQJZKHWKHUDVWDWHFRXUWjVGHFLVLRQLVmFRQWUDU\ 4 H@&RXUWjVGHFLVLRQVDVRIWKH FRURQHU WHVWLILHG EUXLVHG KHU VSOHHQ" $ 1R , GLG QRW WLPHRIWKHUHOHYDQWVWDWHFRXUWGHFLVLRQl,GDW$VLV 4 L@WZRXOGKHOS>KLP@LQFRXUWl :LOOLDPV 7UDW 2WKHUHYLGHQFHDQGWHVWLPRQ\SUHVHQWHGDWWULDO KRZHYHULQFOXGLQJ'RDQjVLPSHDFKHGWHVWLPRQ\RQFURVV 7KH2KLR&RXUWRI$SSHDOVZDVWKHODVWFRXUWLQ2KLRWR H[DPLQDWLRQ FRQYLQFLQJO\ VKRZ WKDW 'RDQjV WDSHG DGGUHVVWKHPHULWVRI'RDQjVDSSHDO,QKLVEULHIWRWKH2KLR FRQIHVVLRQVZHUHUHOLDEOH &RXUWRI$SSHDOV'RDQDUJXHGWKDWWKHMXURUjVPLVFRQGXFWLQ FRQGXFWLQJ DQ H[SHULPHQW LQ KHU RZQ KRPH WKH UHVXOWV RI &DWKHULQH%HLVHOjVPRWKHU6KLUOH\%HLVHOWHVWLILHGDWWULDO ZKLFK VKH WROG WR RWKHU PHPEHUV RI WKH MXU\ YLRODWHG KLV WKDWVKHKDGVSHQWWLPHZLWK6WDUMXVWDIHZKRXUVEHIRUH'RDQ 6L[WK$PHQGPHQWULJKWXQGHUWKH8QLWHG6WDWHV&RQVWLWXWLRQ ZDVOHIWZLWKWKHFKLOGUHQRQWKHQLJKWRI6WDUjVGHDWK6KLUOH\ WRKDYHDIDLUWULDOEHIRUHDQLPSDUWLDOMXU\LQZKLFKWKHMXU\jV %HLVHOWHVWLILHGWKDWVKHKDGSOD\HGZLWK6WDUDWDSSUR[LPDWHO\ YHUGLFWLVEDVHGVROHO\XSRQWKHHYLGHQFHSUHVHQWHGDWWULDO SPDQGWKDWVKHGLGQRWQRWLFHDQ\WKLQJXQXVXDODERXW 6HH $SSHOODQWjV %U WR 2KLR &W $SS DW 7KH 2KLR 6WDUjVDSSHDUDQFHRUEHKDYLRU:KHQ'RDQDUULYHGKRPHWKDW &RXUWRI$SSHDOVGLGQRWDGGUHVVWKLVDUJXPHQWLQLWVRSLQLRQ HYHQLQJEHIRUHGULYLQJ&DWKHULQHWRZRUNKHVDLGKHQRWLFHG KRZHYHU,QVWHDGLWEDVHGLWVGHFLVLRQHQWLUHO\RQ2KLR(YLG WKDW6WDUORRNHGSDOHDQGVLFN\HWKHGLGQRWQRWHDQ\WKLQJ 5 % ZKLFKVWDWHVWKDWLQRUGHUIRUDMXURUWRWHVWLI\DV HOVHXQXVXDODERXWKHUDSSHDUDQFH WR DQ H[WUDQHRXV LQIOXHQFH WKDW ZDV EURXJKW WR WKH MXU\jV DWWHQWLRQGXULQJWKHWULDORUGHOLEHUDWLRQVWKHUHPXVWEHVRPH 6WDUjV DXWRSV\ UHSRUW UHYHDOHG QXPHURXV FRQWXVLRQV DQG LQGHSHQGHQWHYLGHQFHIURPDVRXUFHZLWKILUVWKDQGNQRZOHGJH KHPRUUKDJLQJRYHUPXFKRI6WDUjVERG\LQFOXGLQJKHUKHDG RWKHUWKDQWKHMXURUVWKHPVHOYHV6HH6WDWHY6FKLHEHO $WKHPHRI'RDQjVGHIHQVHGHYHORSHGERWKGXULQJKLVGLUHFW 1(G 2KLR FHUW GHQLHG 86 H[DPLQDWLRQDQGLQFORVLQJDUJXPHQWVZDVWKDWWKHUHZDVD 7KH2KLR&RXUWRI$SSHDOVQRWHGWKDWEHFDXVHWKHUH JDSRIWLPHEHWZHHQDSSUR[LPDWHO\ SPZKHQ6WDUjV ZDVQRRXWVLGHHYLGHQFHRIMXURUPLVFRQGXFWWKDWVWHPPHG JUDQGPRWKHUODVWVDZKHUDOLYHDQG SPZKHQ'RDQ DUULYHGDWWKHDSDUWPHQWDIWHUZRUNWKDWZDVXQDFFRXQWHGIRU DQGWKDW6WDUjVLQMXULHVPD\KDYHRFFXUUHGGXULQJWKLVWLPH ,QKLVFORVLQJ'RDQjVGHIHQVHDWWRUQH\ODPHQWHGWKHIDFWWKDW 2KLR (YLG 5 % VWDWHV KH ZDV XQDEOH WR FDOO &DWKHULQH %HLVHO DV D ZLWQHVV WR 8SRQ DQ LQTXLU\ LQWR WKH YDOLGLW\ RI D YHUGLFW RU LQGLFWPHQW D MXURU PD\ QRW WHVWLI\ DV WR DQ\ PDWWHU RU VWDWHPHQW RFFXUULQJ GHWHUPLQHLI6WDUKDGVXIIHUHGLQMXULHVEHIRUH'RDQDUULYHG GXULQJ WKH FRXUVH RI WKH MXU\jV GHOLEHUDWLRQV RU WR WKH HIIHFW RI DQ\WKLQJ XSRQ KLV RU DQ\ RWKHU MXURUjV PLQG RU HPRWLRQV DV :KLOH 'RDQjV GHIHQVH LQVLQXDWHV WKDW PDQ\ RI 6WDUjV LQIOXHQFLQJ KLP WR DVVHQW WR RU GLVVHQW IURP WKH YHUGLFW RU LQMXULHVPD\KDYHEHHQLQIOLFWHGEHIRUH'RDQDUULYHG'RDQ LQGLFWPHQW RU FRQFHUQLQJ KLV PHQWDO SURFHVVHV LQ FRQQHFWLRQ DGPLWWHGRQFURVVH[DPLQDWLRQWKDWWKHFRQWXVLRQVRQ6WDUjV WKHUHZLWK $ MXURU PD\ WHVWLI\ RQ WKH TXHVWLRQ ZKHWKHU KHDG RFFXUUHG ZKLOH KH ZDV ZDWFKLQJ KHU 'RDQ LQVLVWHG H[WUDQHRXV SUHMXGLFLDO LQIRUPDWLRQ ZDV LPSURSHUO\ EURXJKW WR WKH MXU\j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jV WULDO ZDV FDOOHG E\ WKH QRW EH UHFHLYHG IRU WKHVH SXUSRVHV GHIHQVH RXWVLGH WKH SUHVHQFH RI WKH MXU\ DQG H[HUFLVHG KHU )LIWK HPSKDVLV DGGHG $PHQGPHQW ULJKW DJDLQVW VHOILQFULPLQDWLRQ 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR RWKHUPHPEHUVRI'RDQjVMXU\LQYLRODWLRQRI'RDQjV6L[WK IURP HYLGHQFH SURYLGHG E\ DQ\RQH RWKHU WKDQ WKH MXURUV DQG)RXUWHHQWK$PHQGPHQWULJKWV,QVWHDGHYHQWKRXJKZH WKHPVHOYHV2KLR(YLG5 % UHQGHUHGsXURU$jVDIILGDYLW KROG WKDW WKH H[WUDQHRXV LQIOXHQFH RQ WKH MXU\ LQ WKLV FDVH DFNQRZOHGJLQJKHUH[SHULPHQWDWLRQLQDGPLVVLEOH7KHVWDWH DPRXQWHGWRFRQVWLWXWLRQDOHUURUZHPD\QRWJUDQWKDEHDV FRXUWRIDSSHDOVEHFDXVHLWIRXQGWKH2KLRHYLGHQFHUXOHWR UHOLHILIWKDWHUURUZDVKDUPOHVV1HYHUVY.LOOLQJHU )G EHFRQWUROOLQJDSSDUHQWO\GLGQRWGHHPLWQHFHVVDU\WRDGGUHVV WK&LU FHUWGHQLHG86 'RDQjV IHGHUDO FRQVWLWXWLRQDO DUJXPHQW WKDW VXFK MXURU :H QRZ WXUQ WR WKH TXHVWLRQ RI ZKHWKHU WKH FRQVWLWXWLRQDO H[SHULPHQWDWLRQHIIHFWLYHO\GHQLHVKLVULJKWVXQGHUWKH6L[WK HUURUDWWULDOZDVLQGHHGKDUPOHVV $PHQGPHQW +DUPOHVV(UURU 2KLRjV 5XOH % FRGLILHV WKH mDOLXQGH UXOHl D UXOH GDWLQJEDFNWRWKHGD\RI/RUG0DQVILHOGZKLFKVWDWHVWKDW ,QDSSO\LQJWKHKDUPOHVVHUURUDQDO\VLVRQKDEHDVUHYLHZIRU mWKHYHUGLFWRIDMXU\PD\QRWEHLPSHDFKHGE\WKHHYLGHQFH FDVHV JRYHUQHG E\ WKH $QWLWHUURULVP DQG (IIHFWLYH 'HDWK RIDPHPEHURIWKHMXU\XQOHVVIRXQGDWLRQIRUWKHLQWURGXFWLRQ 3HQDOW\ $FW WKLV FLUFXLW KDV KHOG WKDW WKH KDUPOHVV HUURU RIVXFKHYLGHQFHLVILUVWODLGE\FRPSHWHQWHYLGHQFHIURP VWDQGDUGVHWRXWLQ%UHFKWY$EUDKDPVRQ86 VRPH RWKHU VRXUFHl 6WDWH Y $GDPV 1(G VKRXOGDSSO\HYHQZKHQWKHmIHGHUDOKDEHDVFRXUWLV 2KLR 7KLVmUXOHLVGHVLJQHGWRSURWHFWWKHILQDOLW\RI WKHILUVWWRUHYLHZIRUKDUPOHVVHUURUl*LOOLDPY0LWFKHOO YHUGLFWV DQG WR HQVXUH WKDW MXURUV DUH LQVXODWHG IURP )G WK&LU FHUWGHQLHG6&W KDUDVVPHQWE\GHIHDWHGSDUWLHVl6FKLHEHO1(GDW 8QGHUWKLVVWDQGDUGDKDEHDVSHWLWLRQHUPXVW :KLOH)HGHUDO5XOHRI(YLGHQFH E FORVHO\SDUDOOHOVWKH VKRZWKDWWKHWULDOHUURUmKDGVXEVWDQWLDODQGLQMXULRXVHIIHFW 2KLRUXOHLQPRVWUHVSHFWVLWGRHVQRWFRGLI\WKHDOLXQGHUXOH RULQIOXHQFHLQGHWHUPLQLQJWKHMXU\jVYHUGLFW>@l%UHFKW ,QVWHDG)HGHUDO5XOH E DOORZVDMXURUWRWHVWLI\DERXW 86DW FLWDWLRQDQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG DQ\mH[WUDQHRXVSUHMXGLFLDOLQIRUPDWLRQ>WKDW@ZDVLPSURSHUO\ 7KXVLQRUGHUIRUWKLVFRXUWWRJUDQW'RDQKDEHDVUHOLHIKH EURXJKWWRWKHMXU\jVDWWHQWLRQ>@l7KLVLVTXLWHGLIIHUHQWIURP PXVWGHPRQVWUDWHWKDWWKHUHVXOWVRIsXURU$jVH[SHULPHQW WKH DOLXQGH UXOH ZKLFK DOORZV FRQVLGHUDWLRQ RQO\ RI KDYLQJ EHHQ UHOD\HG WR RWKHU PHPEHUV RI WKH MXU\ H[WUDQHRXV SUHMXGLFLDO LQIRUPDWLRQ WKDW FDQ EH YHULILHG E\ VXEVWDQWLDOO\DIIHFWHGRULQIOXHQFHGWKHMXU\jVYHUGLFW$IWHU VRPHVRXUFHRXWVLGHWKHMXU\7KH2KLR&RXUWRI$SSHDOV DQH[KDXVWLYHUHYLHZRIWKHVWDWHWULDOUHFRUGZHFRQFOXGH QRWHGH[SOLFLWO\LQLWVRSLQLRQWKDWLI)HGHUDO5XOH E KDG WKDW WKH MXU\jV FRQVLGHUDWLRQ RI H[WUDQHRXV PDWHULDO LQ WKLV DSSOLHG WR 'RDQjV WULDO WKH HYLGHQFH RI MXURU PLVFRQGXFW FDVHZDVKDUPOHVVHUURU ZRXOGOLNHO\KDYHEHHQDGPLVVLEOH'RDQ :/ DW m2KLRjVUXOHLVGLIIHUHQWUHTXLULQJDGLIIHUHQWUHVXOWLQ 7KHPRVWGDPDJLQJHYLGHQFHSUHVHQWHGE\WKHSURVHFXWLRQ WKHSUHVHQWFDVHl ZDV RI FRXUVH 'RDQjV WDSHG VWDWHPHQWV FRQIHVVLQJ WR VWULNLQJVKDNLQJDQGVFDOGLQJWKHIDFHRIILIWHHQPRQWKROG %HFDXVHWKH2KLR&RXUWRI$SSHDOVGLGQRWHYHQLGHQWLI\LQ 6WDU +ROOLQJVZRUWK 7KH SROLFH RIILFHUV ZKR LQWHUYLHZHG LWVRSLQLRQWKDW'RDQKDGDIHGHUDOFRQVWLWXWLRQDOULJKWWRD 'RDQRQWKHQLJKWRIWKHPXUGHUH[SODLQHGWKHVXEVWDQFHRI IDLUDQGLPSDUWLDOMXU\WKDWFRQVLGHUVLQLWVGHOLEHUDWLRQVRQO\ 'RDQjVFRQIHVVLRQWRWKHMXU\DQGWKHWDSHGFRQIHVVLRQVZHUH WKHHYLGHQFHSUHVHQWHGDJDLQVWKLPDWWULDOWKHmXQUHDVRQDEOH SOD\HG LQ WKHLU HQWLUHW\ GXULQJ WKH WULDO ,Q KLV GLUHFW DSSOLFDWLRQl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jV 6L[WK $PHQGPHQWULJKWVLQLWVDQDO\VLVLPSOLFLWO\KROGLQJWKDW2KLR 7KXVZHFRQFOXGHWKDWWKH2KLRFRXUWVjDSSOLFDWLRQRI2KLR (YLG5 % WUXPSVWKHFRQVWLWXWLRQDODUJXPHQWVWKDWWKH (YLG5 % HIIHFWLYHO\GHQLHG'RDQWKHRSSRUWXQLW\WR GHIHQGDQWUDLVHG VKRZ D YLRODWLRQ RI KLV 6L[WK DQG )RXUWHHQWK $PHQGPHQW ULJKWVWRFRQIURQWWKHHYLGHQFHDQGWKHZLWQHVVHVSUHVHQWHG 7KHTXHVWLRQWKHQLVZKHWKHUWKH2KLR&RXUWRI$SSHDOVjV DJDLQVWKLPDVZHOODVKLVULJKWWRDMXU\WKDWFRQVLGHUVRQO\ GHFLVLRQ DSSO\LQJ 2KLRjV 5XOH % LQ VSLWH RI 'RDQjV WKHHYLGHQFHSUHVHQWHGDWWULDO)XUWKHUPRUHWKH2KLRFRXUWV 6L[WK$PHQGPHQWFODLPLVmFRQWUDU\WRlFOHDUO\HVWDEOLVKHG DSSOLHG 2KLR 5XOH % ZKLOH LJQRULQJ 'RDQjV 6XSUHPH&RXUWSUHFHGHQWDVRIWKHWLPHRILWVGHFLVLRQ:H FRQVWLWXWLRQDO FODLP WKHUHE\ YLRODWLQJ FOHDUO\ HVWDEOLVKHG KROGWKDWLWLV 6XSUHPH &RXUW SUHFHGHQW UHFRJQL]LQJ WKH IXQGDPHQWDO LPSRUWDQFH RI 'RDQjV FRQVWLWXWLRQDO ULJKW WR D IDLU WULDO $VVWDWHGHDUOLHUWKH6XSUHPH&RXUWLQ:LOOLDPVIXUWKHU 1HYHUWKHOHVVZHPD\QRWJUDQWKDEHDVUHOLHIVLPSO\EHFDXVH GHILQHG ZKDW LW PHDQV IRU D VWDWH FRXUW GHFLVLRQ WR EH sXURU$SUHVHQWHGWKHUHVXOWVRIDQLPSURSHUH[SHULPHQWWR mFRQWUDU\WRlFOHDUO\HVWDEOLVKHG6XSUHPH&RXUWSUHFHGHQW 7KH :LOOLDPV &RXUW QRWHG WKDW mFRQWUDU\l LV GHILQHG DV mGLDPHWULFDOO\GLIIHUHQWRSSRVLWHLQFKDUDFWHURUQDWXUHRU PXWXDOO\RSSRVHGl:LOOLDPV6&WDW LQWHUQDO :H QRWHG 8:57, WKDW LI )HG 5 (YLG E KDG DSSOLHG LQ WKLV FDVH TXRWDWLRQPDUNVRPLWWHG 7KXVDVWDWHFRXUWGHFLVLRQZLOOEH UDWKHU WKDQ 2KLR (YLG 5 % WHVWLPRQ\ UHJDUGLQJ LPSURSHU MXURU mFRQWUDU\ WRl FOHDUO\ HVWDEOLVKHG 6XSUHPH &RXUW SUHFHGHQW H[SHULPHQWV FRPPXQLFDWHG WR RWKHU PHPEHUV RI WKH MXU\ ZRXOG EH RQO\LILWmDSSOLHVDUXOHWKDWFRQWUDGLFWVWKHJRYHUQLQJODZVHW DGPLVVLEOH VLQFH )HG 5 (YLG E GRHV QRW UHTXLUH WKDW WKH HYLGHQFH RI PLVFRQGXFW FRPH IURP VRPH RXWVLGH VRXUFH LQGHSHQGHQW RI WKH MXU\ IRUWKLQ>6XSUHPH&RXUW@FDVHV>@lRULILWmFRQIURQWVDVHWRI 6RPH FLUFXLWV KDYH VWDWHG WKDW LQ IHGHUDO KDEHDV SURFHHGLQJV EURXJKW IDFWVWKDWDUHPDWHULDOO\LQGLVWLQJXLVKDEOHIURPD>6XSUHPH SXUVXDQW WR )HG 5 (YLG H SURYLGHV WKDW WKH )HGHUDO 5XOHV &RXUWGHFLVLRQ@DQGQHYHUWKHOHVVDUULYHVDWDUHVXOWGLIIHUHQW RI (YLGHQFH VKRXOG EH DSSOLHG LQ GHFLGLQJ ZKHWKHU MXURU WHVWLPRQ\ LV IURP>6XSUHPH&RXUW@SUHFHGHQWl,G DGPLVVLEOH WR LPSHDFK D MXU\ YHUGLFW 0F'RZHOO Y &DOGHURQ )G WK &LU UHYjG RQ RWKHU JURXQGV )G WK &LU HQ EDQF FHUW GHQLHG 86 VHH DOVR 'RDQDUJXHVWKDWEHFDXVH2KLR(YLG5 % SUHYHQWV *RVLHU Y :HOERUQ )G WK &LU FHUW GHQLHG 6 &W WKHFRQVLGHUDWLRQRIFOHDUHYLGHQFHRIMXU\PLVFRQGXFWLQWKLV VWDWLQJ LQ GLFWD WKDW QRWKLQJ LQ WKH ODQJXDJH RU KLVWRU\ RI FDVHWKHUXOHjVDSSOLFDWLRQYLRODWHGKLVIHGHUDOFRQVWLWXWLRQDO )HG 5 (YLG E LQGLFDWHV WKDW LW VKRXOG QRW mDSSO>\@ HTXDOO\l WR VWDWH ULJKWWRDIDLUWULDO7KH6XSUHPH&RXUWKDVUHFRJQL]HGWKH FRXUW YHUGLFWV UHYLHZHG LQ IHGHUDO KDEHDV SURFHHGLQJV \HW QRW GLVFXVVLQJ ULJKW WR D IDLU WULDO DV DULVLQJ RXW RI ERWK WKH 6L[WK DQG ZKDW ZRXOG KDSSHQ LI WKH IHGHUDO UXOH FRQIOLFWHG ZLWK D VWDWH HYLGHQFH UXOH )RXUWHHQWK $PHQGPHQWV 6HH )DUHWWD Y &DOLIRUQLD WKDW ZDV DSSOLHG LQ WKH VWDWH SURFHHGLQJV ,Q 0F'RZHOO WKH 1LQWK &LUFXLW VWDWHG WKDW )HG 5 (YLG E ZRXOG DSSO\ GHVSLWH D SRWHQWLDOO\ FRQIOLFWLQJ VWDWH HYLGHQFH UXOH 0F'RZHOO )G DW ,Q OLJKW RI WKH GHIHUHQFH WR VWDWH SURFHHGLQJV FDOOHG IRU E\ $('3$ LW VHHPV VWUDQJH LQGHHG WKDW D IHGHUDO KDEHDV FRXUW ZRXOG DSSO\ LWV RZQ 7KH 6L[WK $PHQGPHQW VWDWHV WKDW m>L@Q DOO FULPLQDO SURVHFXWLRQV WKH UXOHV RI HYLGHQFH GHVSLWH D FRQIOLFWLQJ VWDWH UXOH ZKHQ LW LV VLPSO\ DFFXVHG VKDOO HQMR\ WKH ULJKW WR D VSHHG\ DQG SXEOLF WULDO E\ DQ LPSDUWLDO UHYLHZLQJ WKH VWDWH FRXUW UHFRUG LQ PDNLQJ LWV GHWHUPLQDWLRQ UDWKHU WKDQ MXU\ RI WKH 6WDWH DQG GLVWULFW ZKHUHLQ WKH FULPH VKDOO KDYH EHHQ FRPPLWWHG KROGLQJ DQ HYLGHQWLDU\ KHDULQJ LQ IHGHUDO FRXUW 6HH 6KLOOFXWW Y *DJQRQ ZKLFK GLVWULFW VKDOO KDYH EHHQ SUHYLRXVO\ DVFHUWDLQHG E\ ODZ DQG WR EH )G WK &LU 5LSSOH s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mWKH 7KLVFLUFXLWKDVDOVRDGGUHVVHGWKHWKUHDWWKDWRXWRIFRXUW µXQGHYLDWLQJUXOHjWKDWWKHULJKWVRIFRQIURQWDWLRQDQGFURVV MXURUH[SHULPHQWVSRVHWRDGHIHQGDQWjVULJKWWRDIDLUWULDO,Q H[DPLQDWLRQDUHDPRQJWKHIXQGDPHQWDOUHTXLUHPHQWVRID ,QUH%HYHUO\+LOOV)LUH/LWLJDWLRQ )G WK FRQVWLWXWLRQDOO\IDLUWULDOl3DUNHUY*ODGGHQ86 &LU FHUW GHQLHG 86 D IHGHUDO FLWDWLRQRPLWWHG 7KH&RXUWKDVIXUWKHUKHOG GLYHUVLW\ FDVH IROORZLQJ D SODLQWLIIVj H[SHUW ZLWQHVVjV WKDW WHVWLPRQ\DMXURUFRQGXFWHGmDQLPSURSHUH[SHULPHQWlZKHQ KHH[DPLQHGWKHDOXPLQXPZLULQJLQKLVKRPHDQGUHSRUWHG ,QWKHFRQVWLWXWLRQDOVHQVHWULDOE\MXU\LQDFULPLQDOFDVH KLVILQGLQJVWRDWOHDVWVL[RWKHUMXURUVGXULQJWKHFRXUVHRIWKH QHFHVVDULO\ LPSOLHV DW WKH YHU\ OHDVW WKDW WKH HYLGHQFH WULDO7KHGHIHQGDQWVLQWKHFDVHFRQWHQGHGWKDWWKHMXURUjV GHYHORSHG DJDLQVW D GHIHQGDQW VKDOO FRPH IURP WKH FRQGXFWZDVQHLWKHUDQH[SHULPHQWQRUDQLQWHQWLRQDODWWHPSW ZLWQHVVVWDQGLQDSXEOLFFRXUWURRPZKHUHWKHUHLVIXOO WR XQFRYHU DGGLWLRQDO LQIRUPDWLRQ EXW LQVWHDG ZDV D MXGLFLDO SURWHFWLRQ RI WKH GHIHQGDQWjV ULJKW RI mSHUVRQDOl H[SHULHQFH mZKLFK FRXOG QRW KDYH DIIHFWHG WKH FRQIURQWDWLRQRIFURVVH[DPLQDWLRQDQGRIFRXQVHO MXGJPHQWRIWKDWMXURURUWKRVHWRZKRPKHFRPPXQLFDWHG WKDWLQIRUPDWLRQl,GDW7KLVFRXUWKHOGWRWKHFRQWUDU\ 7XUQHUY/RXLVLDQD 86 TXRWDWLRQ KRZHYHU VWDWLQJ WKDW UDWKHU WKDQ WKLV EHLQJ D mPHQWDO RU RPLWWHG HPRWLRQDOUHDFWLRQRUH[SUHVVLRQlGXULQJGHOLEHUDWLRQVWKLV ZDVDQH[SHULPHQWWKDWWDLQWHGWKHMXU\jVYHUGLFWE\mLQMHFWLQJ ,Q 3DUNHU WKH 6XSUHPH &RXUW KHOG WKDW SUHMXGLFLDO H[WUDQHRXVLQIRUPDWLRQLQWRWKHWULDOl,G FRPPHQWVWRDMXU\E\DEDLOLIIGXULQJGHOLEHUDWLRQVYLRODWHG WKHGHIHQGDQWjV6L[WKDQG)RXUWHHQWK$PHQGPHQWULJKWV7KH :HH[SODLQHGLQ%HYHUO\+LOOVWKDWZKLOHWKHJHQHUDOUXOH EDLOLIIZKRZDVDVVLJQHGWRDVHTXHVWHUHGMXU\VWDWHGWRRQH XQGHUIHGHUDOHYLGHQFHODZLVWKDWDMXURUPD\QRWLPSHDFKKLV RIWKHMXURUVLQWKHSUHVHQFHRIRWKHUVWKDWWKHGHIHQGDQWZDV YHUGLFWDQH[FHSWLRQWRWKLVUXOHH[LVWVZKHUHH[WHUQDOIDFWRUV DmZLFNHGPDQlWKDWKHZDVJXLOW\DQGWKDWLIWKHUHZDVDQ ZHUHSUHVHQWWKDWPD\KDYHDIIHFWHGWKHMXU\jVGHOLEHUDWLRQV HUURU LQ ILQGLQJ WKH GHIHQGDQW JXLOW\ WKH 6XSUHPH &RXUW ,G7KLVH[FHSWLRQH[LVWVmWRDVVXUHWKDWWKHSDUWLHVUHFHLYHD ZRXOGFRUUHFWLW3DUNHU86DW7KH&RXUWKHOG IDLU WULDO DQG WKDW WKH LQWHJULW\ RI WKH V\VWHP LWVHOI LV WKDWWKHGHIHQGDQWjVULJKWWRFRQIURQWDQGFURVVH[DPLQHWKH PDLQWDLQHGl ,G :H KHOG WKDW EHFDXVH WKH H[SHULPHQW ZLWQHVVHVDJDLQVWKLPZDVYLRODWHGE\WKHVHFRPPHQWVDQG HIIHFWLYHO\SURYLGHGWKHMXURUVZLWKHYLGHQFHQRWSUHVHQWHGDW WKDW JLYHQ WKH RIILFLDO QDWXUH RI WKH EDLOLIIjV SRVLWLRQ WKH WULDODQGEHFDXVHWKHLQIRUPDWLRQZDVVROLNHO\WRKDYHEHHQ OLNHOLKRRGIRUSUHMXGLFHZDVKLJK,GDW SUHMXGLFLDOZHKDGQRFKRLFHEXWWRUHYHUVHWKHMXU\jVYHUGLFW DQGUHPDQGIRUDQHZWULDO,GDW,WLVLPSRUWDQWWR sXVW DV WKH EDLOLII LQ 3DUNHU ZDV HVVHQWLDOO\ DFWLQJ DV D QRWHWKDWHYHQWKRXJKWKH)HGHUDO5XOHVRI(YLGHQFHDSSOLHG ZLWQHVV ZKRVH WHVWLPRQ\ WKH GHIHQGDQW FRXOG QRW FRQIURQW LQ %HYHUO\ +LOOV ZH VSRNH JHQHUDOO\ RI WKH IXQGDPHQWDO DQG SRVVLEO\ GLVFUHGLW WKURXJK FURVVH[DPLQDWLRQ RU WKH UHTXLUHPHQWV RI D IDLU WULDO SURWHFWLRQV WKDW DUH QRW SUHVHQWDWLRQRIRWKHUHYLGHQFHVRWRRZDVsXURU$DFWLQJDV DZLWQHVVKHUHLQKHUVWDWHPHQWVWRKHUIHOORZMXURUVUHJDUGLQJ ZLWQHVVHV LQ KLV IDYRU DQG WR KDYH WKH $VVLVWDQFH RI &RXQVHO IRU KLV GHIHQFHl 86 &RQVW DPHQG 9, 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR WKHUHVXOWVRIKHURXWRIFRXUWH[SHULPHQW$VDSSOLHGLQWKLV sXGJH )ULHQGO\ H[SODLQHG WKDW ZKLOH MXURUV FDQ WDNH LQWR FDVH 2KLRjV 5XOH % DOORZHG sXURU $ WR FRQGXFW DQ DFFRXQWWKHLURZQZLVGRPH[SHULHQFHDQGFRPPRQVHQVH H[SHULPHQWLQKHURZQKRPHHYHQWKRXJKLWPD\KDYHEHHQ mLQGRLQJVR>WKH\@PXVWQRWEULQJH[WUDIDFWVLQWRWKHMXU\ GHHSO\IODZHGLQLWVPHWKRGRORJ\DQGWRSUHVHQWWKHUHVXOWVRI URRP7RWKHJUHDWHVWH[WHQWSRVVLEOHDOOIDFWXDO>PDWHULDO@ WKDWH[SHULPHQWWRKHUIHOORZMXURUVHYHQWKRXJKLWPD\KDYH PXVWSDVVWKURXJKWKHMXGLFLDOVLHYHZKHUHWKHIXQGDPHQWDO VXEVWDQWLDOO\ LPSDLUHG WKH GHIHQGDQWjV FUHGLELOLW\ VLPSO\ JXDUDQWHHV RI SURFHGXUDO ODZ SURWHFW WKH ULJKWV RI WKRVH EHFDXVHQRRQHHOVHVDZKHUFRQGXFWWKHH[SHULPHQWRUKHDUG DFFXVHGRIFULPHl,GDW FLWDWLRQRPLWWHG 7KH6WDWH KHUUHOD\WKHUHVXOWVRIWKDWH[SHULPHQWWRRWKHUMXURUV2KLR FODLPHG WKDW EHFDXVH WKLV FDVH LQYROYHG MXU\ PLVFRQGXFW 5XOH % E\ GHQ\LQJ WKH 2KLR FRXUWV WKH DELOLW\ WR LQVLGHWKHMXU\URRPDVRSSRVHGWRLPSURSULHW\RXWVLGHWKH FRQVLGHUHYLGHQFHRIWKHMXU\PLVFRQGXFWLQWKLVFDVHGHQLHG MXU\ URRP ERWK IHGHUDO DQG 1HZ @lDQG 7KH :DUGHQ DUJXHV WKDW 'RDQjV FDVH LV GLVWLQJXLVKDEOH WKXVZKHWKHUKLVFRQVWLWXWLRQDOULJKWVZHUHYLRODWHG,GDW EHFDXVH QR LQDSSURSULDWH FRPPXQLFDWLRQV EHWZHHQ D FRXUW RIILFLDORURWKHURXWVLGHVRXUFHDQG'RDQjVMXU\RFFXUUHG 6HH$SSHOOHHjV%UDW5DWKHUWKH:DUGHQDUJXHVWKDW 6LQFH2ZHQVHYHUDOFLUFXLWVKDYHIROORZHGVXLWLQKROGLQJ DQ\PLVFRQGXFWLQWKLVFDVHZDVWKHUHVXOWRIFRPPXQLFDWLRQ WKDWDMXU\jVFRQVLGHUDWLRQRIH[WUDQHRXVPDWHULDOYLRODWHVD DPRQJ WKH MXURUV WKHPVHOYHV DQG WKDW mµWKH HYLGHQFH RI GHIHQGDQWjVFRQVWLWXWLRQDOULJKWV,Q'XUUY&RRN )G MXURUV>@DVWRWKHPRWLYHVDQGLQIOXHQFHVZKLFKDIIHFWHGWKHLU WK&LU DQRWKHUFDVHVLPLODUWRWKLVRQHD GHOLEHUDWLRQV>@LVLQDGPLVVLEOHHLWKHUWRLPSHDFKRUWRVXSSRUW /RXLVLDQDSULVRQHUSHWLWLRQHGIRUKDEHDVFRUSXVUHOLHIRQWKH WKH YHUGLFWjl $SSHOOHHjV %U DW TXRWLQJ 0DWWR[ Y JURXQGV WKDW D MXURUjV RXWRIFRXUW H[SHULPHQW YLRODWHG KLV 8QLWHG 6WDWHV 86 7KH :DUGHQ FRQVWLWXWLRQDO ULJKWV WR FRQIURQWDWLRQ DQG GXH SURFHVV ,Q KRZHYHUPLVUHSUHVHQWVWKHKROGLQJRI0DWWR[ 'XUUWKHMXU\IRUHPDQDOOHJHGO\FRQGXFWHGDQH[SHULPHQWDW D ORFDO )RUG GHDOHUVKLS GXULQJ WKH WULDO PDNLQJ WZLVWLQJ ,Q 0DWWR[ IROORZLQJ D IHGHUDO MXU\jV JXLOW\ YHUGLFW WKH PRYHPHQWV LQ D )RUG SLFNXS WUXFN LQ RUGHU WR WHVW WKH GHIHQGDQW DWWHPSWHG WR LQWURGXFH VHYHUDO MXURUVj DIILGDYLWV GHIHQGDQWjV VHOIGHIHQVH H[SODQDWLRQ ,G 7KH VWDWH WULDO VWDWLQJ WKDW WKH EDLOLII LQ FKDUJH RI WKH MXU\ KDG PDGH FRXUWRQDPRWLRQIRUDQHZWULDOHQIRUFHGD/RXLVLDQDVWDWXWH LQDSSURSULDWH FRPPHQWV WR WKHP UHJDUGLQJ WKH GHIHQGDQWjV ZKLFKSUHYHQWHGDMXURUIURPLPSHDFKLQJKLVRZQYHUGLFW JXLOWDQGFRQFHUQLQJFHUWDLQLQFULPLQDWLQJHYLGHQFHDJDLQVW DQG KHOG WKDW WKH IRUHPDQ FRXOG QRW WHVWLI\ DV WR WKH WKHGHIHQGDQWWKDWZDVQRWSUHVHQWHGDWWULDO,GDW7KH H[SHULPHQW RU ZKHWKHU WKH UHVXOWV RI WKDW H[SHULPHQW ZHUH MXURUV DOVR VWDWHG LQ WKHLU DIILGDYLWV WKDW ZKLOH WKH\ ZHUH SDVVHGRQWRWKHUHVWRIWKHMXU\,GDW 7KH)LIWK GHOLEHUDWLQJDQHZVSDSHUZDVEURXJKWLQWRWKHMXU\URRPWKDW &LUFXLWRQKDEHDVUHYLHZKRZHYHUKHOGWKDWWKHGHIHQGDQWjV FRQWDLQHGDQRSLQLRQSLHFHRQWKHGHWDLOVRIWKHWULDODQGWKH FRQVWLWXWLRQDO ULJKWV WDNH SUHFHGHQFH RYHU WKH /RXLVLDQD VWUHQJWKRIWKHHYLGHQFHDJDLQVWWKHGHIHQGDQW,GDW VWDWXWHDQGEHFDXVHWKHGHIHQGDQWmSUHVHQWHG D VXEVWDQWLDO 7KLVDUWLFOHZDVUHDGDORXGLQWKHSUHVHQFHRIWKHHQWLUHMXU\ FODLPWKDWKLVULJKWVPD\KDYHEHHQYLRODWHGlWKHIRUHPDQ ,G PXVWEHDOORZHGWRWHVWLI\DVWRKLVFRQGXFW,GDW 7KH 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR :KLOHZHPD\QRWORRNWRWKHGHFLVLRQVRIORZHUIHGHUDO 7KH6XSUHPH&RXUWKHOGWKDWWKHMXURUDIILGDYLWVLQ0DWWR[ FRXUWV IRU JXLGDQFH ZKHQ GHFLGLQJ ZKHWKHU D VWDWH FRXUW VKRXOG KDYH EHHQ FRQVLGHUHG E\ WKH WULDO FRXUW ZKHQ GHFLVLRQ LV FRQWUDU\ WR FOHDUO\ HVWDEOLVKHG 6XSUHPH &RXUW DGGUHVVLQJWKHGHIHQGDQWjVPRWLRQIRUDQHZWULDODQGLQOLJKW SUHFHGHQW+HUEHUW)GDWLWLVZRUWKQRWLQJWKDW RI WKH DIILGDYLWV WKH &RXUW WKHQ JUDQWHG WKH GHIHQGDQWjV ZH DUH E\ QR PHDQV WKH ILUVW IHGHUDO FRXUW RI DSSHDOV WR PRWLRQIRUDQHZWULDO,GDW ,QGRLQJVRWKH UHFRJQL]H WKDW D VWDWHjV mDOLXQGHl HYLGHQFH UXOH FDQQRW EH &RXUWGLVWLQJXLVKHGEHWZHHQWKDWMXURUWHVWLPRQ\ZKLFKFDQ DSSOLHGWRYLRODWHDGHIHQGDQWjVFRQVWLWXWLRQDOULJKWWRDIDLU DQGWKDWZKLFKFDQQRWEHXVHGWRVHWDVLGHDMXU\YHUGLFW,G WULDO 7KLUW\ \HDUV DJR LQ 8QLWHG 6WDWHV H[ UHO 2ZHQ Y 7KH &RXUW KHOG WKDW D PDWWHU mUHVWLQJ LQ WKH SHUVRQDO 0F0DQQ)G G&LU FHUWGHQLHG86 FRQVFLRXVQHVVRIRQHMXURUlPD\QRWEHXVHGWRXSVHWDMXU\jV WKH 6HFRQG &LUFXLW LQ DQ RSLQLRQ E\ sXGJH YHUGLFWmEHFDXVHEHLQJSHUVRQDOLWLVQRWDFFHVVLEOHWRRWKHU )ULHQGO\ GHFLGHG D FDVH VWULNLQJO\ VLPLODU WR WKLV RQH ,Q WHVWLPRQ\l,GDW7KH&RXUWVWDWHGWKDWLWZRXOGQRW 2ZHQDVWDWHSULVRQHUVRXJKWIHGHUDOKDEHDVUHOLHIDUJXLQJ JLYHWKHmVHFUHWWKRXJKW>V@RIRQH>MXURU@WKHSRZHUWRGLVWXUE WKDW KLV 6L[WK $PHQGPHQW ULJKW WR FRQIURQWDWLRQ KDG EHHQ WKHH[SUHVVHGFRQFOXVLRQVRIWZHOYHl,G,QVKDUSFRQWUDVW YLRODWHGE\H[WUDQHRXVVWDWHPHQWVPDGHE\WKUHHMXURUVDERXW WR WKH VHFUHW WKRXJKWV RI MXURUV WKH &RXUW KHOG WKDW MXURU WKHGHIHQGDQW,GDW,Q2ZHQWKHMXURUVKDGQRRXWVLGH WHVWLPRQ\DVWRmRYHUWDFWVlRIPLVFRQGXFWFDQEHFRQVLGHUHG FRQWDFWZLWKDFRXUWRIILFLDORUDQ\RQHHOVHIRUWKDWPDWWHU EHFDXVHWKHUHPDLQLQJPHPEHUVRIWKHMXU\FDQWHVWLI\DVWR LQVWHDGVHYHUDOMXURUVWROGRWKHUMXURUVGXULQJWKHWULDOWKDW ZKHWKHURUQRWWKRVHDFWVRIPLVFRQGXFWDFWXDOO\RFFXUUHG,G WKH\NQHZDERXWWKHGHIHQGDQWjVKLVWRU\DQGWKDWKHZDVD DW 7KH &RXUW UHFRJQL]HG WKDW E\ GUDZLQJ WKLV EDG SHUVRQ ZKR ZDV DOZD\V JHWWLQJ LQ WURXEOH ,G $V LQ GLVWLQFWLRQYHULILDEOHHYLGHQFHRIDMXU\jVFRQVLGHUDWLRQRI 2KLR1HZ@l ,G 'HVSLWH WKH SROLF\ FRQVLGHUDWLRQVZHLJKLQJLQIDYRURIWKH1HZKHU@ XQGHUVWDQGLQJ RI WKRVH ZRUGVl s$ DW FRQVWLWXWLRQDOULJKWWRGXHSURFHVVZDVYLRODWHG,GDW sXURU $ $II 7KHUH LV QR HYLGHQFH WKDW sXURU $ LQIRUPHG RWKHU MXURUV DERXW WKH GHILQLWLRQV VKH KDG UHYLHZHG DQG WKXV WKHUH LV QR mRYHUW DFWl RI PLVFRQGXFW WKDW FRXOG EH YHULILHG E\ WKH WHVWLPRQ\ RI RWKHU MXURUV 6HH 0DWWR[ 86 DW 'RDQY%ULJDQR 1R 1R 'RDQY%ULJDQR WKRVHLQVWDQFHVRIPLVFRQGXFWLQZKLFKWKHUHLVLQDSSURSULDWH 7KH6L[WK$PHQGPHQWUHTXLUHVmDWWKHYHU\OHDVWlWKDWWKH FRQWDFWEHWZHHQWKHMXU\DQGDFRXUWRIILFLDORUVRPHRWKHU HYLGHQFHEURXJKWDJDLQVWDGHIHQGDQWDQGFRQVLGHUHGE\WKH RXWVLGHVRXUFH6HHLG MXU\EHSUHVHQWHGDWWULDOZKHUHWKHGHIHQGDQWFDQFRQIURQW WKDWHYLGHQFHWRWKHIXOOHVWH[WHQWSRVVLEOH7XUQHU 86 ,W LV LPSRUWDQW WR VWUHVV WKDW ZH DUH QRW FDOOLQJ 'RDQjV DW 2KLR 5XOH % E\ UHIXVLQJ WR DOORZ YHUGLFW LQWR TXHVWLRQ E\ UHYLHZLQJ WKH SULYDWH LQWHUQDO FRQVLGHUDWLRQRIHYLGHQFHRIWKHLPSURSHUMXURUH[SHULPHQWLQ GHOLEHUDWLRQVRIWKHMXU\$VWKH6XSUHPH&RXUWKDVQRWHG WKLV FDVH IDLOV WR SURWHFW DGHTXDWHO\ 'RDQjV FRQVWLWXWLRQDO mVXEVWDQWLDOSROLF\FRQVLGHUDWLRQVlLQFOXGLQJWKHILQDOLW\RI ULJKWWRDIDLUWULDO7KHVWDWHFRXUWjVXVHRIWKLVUXOHWRGHFLGH YHUGLFWVDQGWKHDYRLGDQFHRISRVWYHUGLFWMXURUKDUDVVPHQW 'RDQjV FRQVWLWXWLRQDO FODLP LV mFRQWUDU\ WRl FOHDUO\ ZHLJKLQIDYRURIOLPLWLQJWKHH[WHQWWRZKLFKZHGHOYHLQWR HVWDEOLVKHG 6XSUHPH &RXUW SUHFHGHQW UHFRJQL]LQJ WKH WKDWWKLFNHW7DQQHUY8QLWHG6WDWHV86 IXQGDPHQWDOLPSRUWDQFHRIWKLVULJKW6HH3DUNHU86 ,QVWHDG ZKDW PDNHV WKLV FDVH GLIIHUHQW DQG ZKDW DW 7XUQHU 86DW WULJJHUVFRQFHUQVRIDFRQVWLWXWLRQDOGLPHQVLRQLVWKHIDFWWKDW sXURU$FRQGXFWHGDQRXWRIFRXUWH[SHULPHQWDQGUHSRUWHG KHUILQGLQJVWRWKHMXU\LQWKHPDQQHURIDQH[SHUWZLWQHVV 8QOLNHDQH[SHUWZLWQHVVKRZHYHUsXURU$jVWHVWLPRQ\ZDV QRW SUHVHQWHG RQ WKH ZLWQHVV VWDQG QRU ZDV LW VXEMHFW WR sXGJH 6XKUKHLQULFKjV FRQFXUULQJ RSLQLRQ FRQWHQGV WKDW WKH 2KLR FRQIURQWDWLRQ DQG FURVVH[DPLQDWLRQ E\ 'RDQjV DWWRUQH\V &RXUW RI $SSHDOV GHFLVLRQ LV QRW mFRQWUDU\ WRl FOHDUO\ HVWDEOLVKHG sXURU $jV WHVWLPRQ\ ZDV QRW RQ WKH UHFRUG QRU ZDV LW 6XSUHPH &RXUW SUHFHGHQW EHFDXVH LW GLG QRW UHDFK D UHVXOW RSSRVLWH WR JRYHUQHGE\WKHVDPHHYLGHQFHUXOHVDVDOOWKHRWKHUHYLGHQFH 6XSUHPH &RXUW SUHFHGHQW LQ D FDVH ZLWK mPDWHULDOO\ LQGLVWLQJXLVKDEOHl SUHVHQWHG DW WULDO ,Q VKRUW sXURU $jV H[SHULPHQW DQG KHU IDFWV :LOOLDPV 6 :LOOLDPV WKDW WKHUH &W DW +RZHYHU WKH 6XSUHPH &RXUW VWDWHG VXEVHTXHQWUHSRUWRILWVUHVXOWVUHVXOWVZKLFKLQGLFDWHGWKDW LQ DUH WZR ZD\V IRU D VWDWH FRXUW GHFLVLRQ WR EH mFRQWUDU\ WRl FOHDUO\ HVWDEOLVKHG 6XSUHPH &RXUW SUHFHGHQW 6HH LG )LUVW 'RDQ PD\ QRW KDYH EHHQ WUXWKIXO LQ KLV WHVWLPRQ\ RQ WKH m>D@ VWDWHFRXUW GHFLVLRQ ZLOO FHUWDLQO\ EH FRQWUDU\ WR RXU FOHDUO\ ZLWQHVVVWDQGLQMHFWHGH[WUDQHRXVDQGSRWHQWLDOO\SUHMXGLFLDO HVWDEOLVKHG SUHFHGHQW LI WKH VWDWH FRXUW DSSOLHV D UXOH WKDW FRQWUDGLFWV WKH HYLGHQFHLQWRWKHMXU\jVGHOLEHUDWLRQVHYLGHQFHZKLFK'RDQ JRYHUQLQJ ODZ VHW IRUWK LQ >6XSUHPH &RXUW@ FDVHVl ,G 7KH 6XSUHPH DQGKLVDWWRUQH\VKDGQRFKDQFHWRUHIXWH &RXUW WKHQ ZHQW RQ WR H[SODLQ WKDW m>D@ VWDWHFRXUW GHFLVLRQ ZLOO DOVR EH FRQWUDU\ WR WKLV &RXUWjV FOHDUO\ HVWDEOLVKHG SUHFHGHQW LI WKH VWDWH FRXUW $UHYLHZRIWKLVPLVFRQGXFWVWDQGVLQVWDUNFRQWUDVWWRDQ FRQIURQWV D VHW RI IDFWV WKDW DUH PDWHULDOO\ LQGLVWLQJXLVKDEOH IURP D >6XSUHPH &RXUW GHFLVLRQ@ DQG QHYHUWKHOHVV DUULYHV DW D UHVXOW GLIIHUHQW H[DPLQDWLRQRILQWHUQDOIDFWRUVDIIHFWLQJWKHMXU\:KHWKHU IURP RXU SUHFHGHQWl ,G HPSKDVLV DGGHG 7KXV WKH 6XSUHPH &RXUW WKH MXU\ XQGHUVWRRG WKH HYLGHQFH SUHVHQWHG DW WULDO RU WKH QRWHG mLQ HLWKHU RI WKHVH WZR VFHQDULRV D IHGHUDO FRXUW ZLOO EH MXGJHjV LQVWUXFWLRQV IROORZLQJ WKH SUHVHQWDWLRQ RI WKH XQFRQVWUDLQHG E\ G EHFDXVH WKH VWDWHFRXUW GHFLVLRQ IDOOV HYLGHQFH ZKHWKHU D MXURU ZDV SUHVVXUHG LQWR DUULYLQJ DW D ZLWKLQ WKDW SURYLVLRQjV µFRQWUDU\ WRj FODXVHl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jV XVH RI 2KLR FRXUW H[SHULPHQW KRZHYHU FRQIOLFWV ZLWK 'RDQjV (YLG 5 % LQ WKLV FDVH mFRQWUDGLFWV WKH JRYHUQLQJ ODZ VHW IRUWK LQl FRQVWLWXWLRQDOULJKWWRDIDLUDQGLPSDUWLDOMXU\WKDWFRQVLGHUV 6XSUHPH &RXUW SUHFHGHQW UHFRJQL]LQJ WKH IXQGDPHQWDO LPSRUWDQFH RI RQO\WKHHYLGHQFHSUHVHQWHGDWWULDO 'RDQjV FRQVWLWXWLRQDO ULJKW WR FRQIURQW WKH HYLGHQFH DQG WKH ZLWQHVVHV DJDLQVW KLP