Healthcare and Ret v. NLRB

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21
 +HDOWKFDUHDQG5HWLUHPHQW 1RV 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

&RUSRI$PHULFDY1/5% (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU
)LOH 1DPH DS

&RQVHTXHQWO\ WKH %RDUGjV RUGHU GLUHFWLQJ *OHQVLGH WR
EDUJDLQZLWKWKH8QLRQDQGWRVXSSO\LWZLWKWKHUHTXHVWHG 81,7('67$7(6&28572)$33($/6
LQIRUPDWLRQLVWKHUHIRUH(1)25&('
)257+(6,;7+&,5&8,7
BBBBBBBBBBBBBBBBB

+($/7+ &$5( $1' ;
5(7,5(0(17 &25325$7,21 
2) $0(5,&$GED*OHQVLGH 
 1RV
1XUVLQJ&HQWHU 
3HWLWLRQHU&URVV5HVSRQGHQW !


Y 

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

5HVSRQGHQW&URVV3HWLWLRQHU 
1
2Q3HWLWLRQIRU5HYLHZRIDQ2UGHURIWKH1DWLRQDO/DERU
5HODWLRQV%RDUG
1R&$
$UJXHGsXQH
'HFLGHGDQG)LOHG$XJXVW
%HIRUH.(,7+'$8*+75(<DQG*,/0$1&LUFXLW
sXGJHV

7KLV GHFLVLRQ ZDV RULJLQDOO\ LVVXHG DV DQ mXQSXEOLVKHG GHFLVLRQl
ILOHG RQ $XJXVW   2Q )HEUXDU\   WKH FRXUW GHVLJQDWHG WKH
RSLQLRQ DV RQH UHFRPPHQGHG IRU IXOOWH[W SXEOLFDWLRQ


 +HDOWKFDUHDQG5HWLUHPHQW 1RV 1RV +HDOWKFDUHDQG5HWLUHPHQW 
&RUSRI$PHULFDY1/5% &RUSRI$PHULFDY1/5%

BBBBBBBBBBBBBBBBB 7KLUGWKHFDVHV*OHQVLGHFLWHVLQVXSSRUWRILWVFODLPDUH
UHDGLO\GLVWLQJXLVKDEOH)RUH[DPSOHLQ*ROGEHUJY.HOO\
&2816(/  86    WKH 6XSUHPH &RXUW KHOG WKDW LQ
FDVHV LQYROYLQJ WKH WHUPLQDWLRQ RI ZHOIDUH EHQHILWV mSULRU
$5*8('0DUJDUHWs/RFNKDUW&223(5 :$/,16., LQYROYHPHQWLQVRPHDVSHFWVRIDFDVHZLOOQRWQHFHVVDULO\EDU
7ROHGR 2KLR IRU 3HWLWLRQHU  &KULVWRSKHU : MXGJH@DQGWKH%RDUGDUHH[SHFWHGWRSDVVXSRQLWHYHQ 1/5%Y%DMDjV3ODFH)GWK&LUSHU
WKRXJK LW LV QRW VSHFLILFDOO\ DOOHJHG WR EH DQ XQIDLU ODERU FXULDP.X[0IJ&R)GDW
SUDFWLFH LQ WKH FRPSODLQWl   1/5% DW  FLWDWLRQV
RPLWWHG  7KHUH WKH XQLRQ VSOLW D ILQH KDLU FODLPLQJ WKH m>%@DOORWV FDVW XQGHU WKH VDIHJXDUGV SURYLGHG E\ %RDUG
FRPSODLQWRQO\DOOHJHGWKDWWKHHPSOR\HUXQODZIXOO\DLGHGWKH SURFHGXUH >SUHVXPSWLYHO\@ UHIOHFW WKH WUXH GHVLUHV RI WKH
XQLRQQRWWKDWWKHXQLRQXQODZIXOO\DFFHSWHGWKHHPSOR\HUjV SDUWLFLSDWLQJ HPSOR\HHVl  .X[ 0IJ &R  )G DW 
DLG  ,G   7KH %RDUG UHMHFWHG WKH XQLRQjV FODLP DQG FLWLQJ1/5%Y=HOULFK&R)GWK&LU
IRXQGWKDWWKHSDUWLHVKDGIXOO\OLWLJDWHGWKHFODLPSDUWLFXODUO\ 7KXVWKHEXUGHQRISURRIRQSDUWLHVVHHNLQJWRKDYH
ZKHUH WKH FRQVROLGDWHG FRPSODLQW GLUHFWHG DW ERWK WKH D%RDUGVXSHUYLVHGHOHFWLRQVHWDVLGHLVDmKHDY\RQHl6HH
HPSOR\HU DQG XQLRQ FOHDUO\ DOOHJHG WKDW WKH HPSOR\HU +DUODQ1R&RDO&RY1/5%)GWK&LU
mUHQGHUHGDLGDVVLVWDQFHDQGVXSSRUWRI5HVSRQGHQW8QLRQ 7KLVEXUGHQLVQRWPHWE\SURRIRIPLVFRQGXFWEXW
l,GDW$OWKRXJKWKHDOOHJDWLRQVZHUHGLUHFWHGWR m>U@DWKHUVSHFLILFHYLGHQFHLVUHTXLUHGVKRZLQJQRWRQO\WKDW
WKH HPSOR\HU RQO\ WKH XQLRQ GHQLHG WKHP LQ LWV DQVZHU XQODZIXODFWVRFFXUUHGEXWDOVRWKDWWKH\LQWHUIHUHGZLWKWKH
0RUHRYHUGXULQJWKHKHDULQJERWKWKH*HQHUDO&RXQVHODQG HPSOR\HHVjH[HUFLVHRIIUHHFKRLFHWRVXFKDQH[WHQWWKDWWKH\
 +HDOWKFDUHDQG5HWLUHPHQW 1RV 1RV +HDOWKFDUHDQG5HWLUHPHQW 
&RUSRI$PHULFDY1/5% &RUSRI$PHULFDY1/5%

PDWHULDOO\ DIIHFWHG WKH UHVXOWV RI WKH HOHFWLRQl  1/5% Y LQ WKH m\HVl ER[ GLG QRW KDYH D WHQGHQF\ WR PLVOHDG
%RVWLN'LY860&RUS)GWK&LU HPSOR\HHV1/5%Y+XE3ODVWLFV,QF)G
TXRWLQJ 1/5% Y :KLWH .QLJKW 0IJ &R  )G  WK&LU7KHUHWKHH[WUDQHRXVPDUNLQJZDVmµFOHDUO\
WK&LUm,WGRHVQRWPDWWHUWKDWWKHUHYLHZLQJ GLVFHUQLEOH DQG VXIILFLHQWO\ GLVWLQFW IURP WKH %RDUGjV
FRXUWPLJKWKDYHUHDFKHGGLIIHUHQWFRQFOXVLRQVLIWKH%RDUG W\SHZULWWHQ DQG SULQWHG QRWLFH VR DV WR SUHFOXGH DQ\
KDVUHVROYHGWKHFDVHUHDVRQDEO\l1/5%Y+DQG\+DUGZDUH VXJJHVWLRQWKDWWKHm;lZDVLQVHUWHGE\WKH%RDUGRUWKDWLW
:KROHVDOH,QF)GWK&LUFLWDWLRQ VXSSRUWHGWKH>XQLRQ@LQWKHHOHFWLRQjl,G
RPLWWHG
6LPLODUO\ KHUH WKH VORSSLO\ GUDZQ m;l GLG QRW KDYH D
,,, WHQGHQF\ WR PLVOHDG WKH HPSOR\HHV EHFDXVH LW ZDV FOHDUO\
GLVFHUQDEOH IURP WKH %RDUGjV W\SHZULWWHQ QRWLFHV DQG
:H PXVW ILUVW DGGUHVV *OHQVLGHjV DOOHJDWLRQ WKDW ,32& GLVFODLPHUV  )XUWKHUPRUH ZLWK WKH H[FHSWLRQ RI +XPDQ
PHPEHUV 5RJHU :LOFRWW sRDQQD %DUQZHOO 3HDUO\ &HLQH 5HVRXUFH0DQDJHU.ROEZKRZDVQRWHOLJLEOHWRYRWHLQWKH
&DURO )OHXULR 0DULO\Q &DGHW DQG 0DUOHQH %DUQZHOO HOHFWLRQ*OHQVLGHIDLOHGWRSURGXFHDQ\HPSOR\HHZKRVDZ
FROOHFWLYHO\WKHm,32&PHPEHUVlDUH8QLRQDJHQWV7KH WKH GHIDFHG QRWLFH GXULQJ WKH EULHI WLPH LW ZDV SRVWHG
KHDULQJRIILFHUUHMHFWHG*OHQVLGHjVDOOHJDWLRQDQGWKH%RDUG %HFDXVHWKHDOOHJHGGHIDFHPHQWZDVFOHDUO\GLVFHUQLEOHDQG
DIILUPHG  :H DJUHH ZLWK ERWK WKH KHDULQJ RIILFHU DQG WKH EHFDXVH*OHQVLGHSURGXFHGQRUHOHYDQWZLWQHVVZKRVDZWKH
%RDUGWKDWWKH8QLRQGLGQRWFORWKHWKH,32&PHPEHUVZLWK DOOHJHGO\ GHIDFHG QRWLFH WKH %RDUG FRUUHFWO\ UHMHFWHG
HLWKHU DFWXDO RU DSSDUHQW DXWKRULW\ DQG WKXV WKHLU DOOHJHG 2EMHFWLRQ
WKUHDWV ZHUH SURSHUO\ QRW LPSXWHG WR WKH 8QLRQ WKURXJK
WUDGLWLRQDODJHQF\SULQFLSOHV '
m*HQHUDOO\ D XQLRQ LV QRW UHVSRQVLEOH IRU WKH DFWV RI DQ *OHQVLGH DOOHJHV WKDW WKH HOHFWLRQ VKRXOG EH VHW DVLGH
HPSOR\HH XQOHVV WKH HPSOR\HH LV DQ DJHQW RI WKH XQLRQl EHFDXVH WKH 8QLRQjV HOHFWLRQ REVHUYHU 5RJHU :LOFRWW
.LWFKHQ )UHVK ,QF Y 1/5%  )G   WK &LU SRVVHVVHG D %LEOH GXULQJ WKH SROOLQJ WKHUHE\ LQMHFWLQJ
7RGHWHUPLQHZKHWKHUDQHPSOR\HHLVDQDJHQWRID UHOLJLRQLQWRWKHHOHFWLRQ:LOFRWWjVSRVVHVVLQJDQGUHDGLQJ
XQLRQWKHTXHVWLRQPXVWEHDQDO\]HGZLWKLQWKHIUDPHZRUNRI WKH %LEOH GXULQJ WKH SROOLQJ LV XQGLVSXWHG  +RZHYHU
FRPPRQODZDJHQF\SULQFLSOHV6HH,G7KHFRQGXFWRISUR *OHQVLGHGRHVQRWSURYLGHDQ\SUHFHGHQWRUFDVHVXSSRUWIRU
XQLRQHPSOR\HHVZLOORQO\EHDWWULEXWHGWRDXQLRQZKHUHWKH LWV DUJXPHQW WKDW :LOFRWWjV UHDGLQJ WKH %LEOH DPRXQWHG WR
XQLRQKDVmLQVWLJDWHGDXWKRUL]HGVROLFLWHGUDWLILHGFRQGRQHG LPSURSHUHOHFWLRQHHULQJ
RUDGRSWHGlWKHFRQGXFW,Gm7KHWHVWRIDJHQF\LQWKHXQLRQ
HOHFWLRQFRQWH[WLVVWULQJHQWLQYROYLQJDGHPRQVWUDWLRQWKDW 7KHKHDULQJRIILFHUIRXQGWKDWDWQRWLPHGLG:LOFRWWPDNH
WKHXQLRQSODFHGWKHHPSOR\HHLQDSRVLWLRQZKHUHKHDSSHDUV DQ\UHIHUHQFHWRWKH%LEOHRUDQ\UHOLJLRXVDSSHDOWRYRWHUV
WRDFWDVLWVUHSUHVHQWDWLYHLWLVQRWHQRXJKWKDWWKHHPSOR\HH ,QIDFW:LOFRWWWHVWLILHGWKDWWKH%RDUGjVDJHQWSURKLELWHGKLP
XQLODWHUDOO\FODLPVUHSUHVHQWDWLYHVWDWXVl7XI)OH[*ODVV IURPWDONLQJWRYRWHUV0RUHRYHUGXULQJWKHHOHFWLRQQHLWKHU
Y 1/5%  )G   WK &LU  FLWDWLRQV *OHQVLGHjV HOHFWLRQ REVHUYHU QRU DQ\ YRWHUV REMHFWHG WR
RPLWWHG :LOFRWWjVSRVVHVVLQJRUUHDGLQJWKH%LEOH7KH%RDUGIRXQG
WKDW :LOFRWWjV SRVVHVVLQJ DQG UHDGLQJ WKH %LEOH GLG QRW
DPRXQWWRSURKLELWHGHOHFWLRQHHULQJDQGZHDJUHH
 +HDOWKFDUHDQG5HWLUHPHQW 1RV 1RV +HDOWKFDUHDQG5HWLUHPHQW 
&RUSRI$PHULFDY1/5% &RUSRI$PHULFDY1/5%

2EMHFWLRQ m$QHPSOR\HHjVFRQGXFWPD\DOVREHDWWULEXWHGWRWKHXQLRQ
LIWKHREMHFWRUFDQGHPRQVWUDWHWKDWWKHXQLRQKDVFORWKHGWKH
*OHQVLGHDOOHJHVWKDW,32&PHPEHU:LOFRWWSRVWHG8QLRQ HPSOR\HH ZLWK DSSDUHQW DXWKRULW\ WR DFW RQ EHKDOI RI WKH
IO\HUV WKURXJKRXW WKH IDFLOLW\ HQJDJHG LQ HOHFWLRQHHULQJ DW XQLRQl.LWFKHQ)UHVK,QF)GDW$WDPLQLPXP
*OHQVLGHjVHQWUDQFHLQWKHGD\VEHIRUHWKHHOHFWLRQDQGWRUH WKH SDUW\ VHHNLQJ WR KROG WKH XQLRQ UHVSRQVLEOH IRU DQ
GRZQ *OHQVLGHjV SRVWHUV LQ WKH ZHHNV EHIRUH WKH HOHFWLRQ HPSOR\HHjV FRQGXFW EDVHG XSRQ WKH WKHRU\ RI DSSDUHQW
7KH KHDULQJ RIILFHU IRXQG WKDW ERWK 8QLRQ DQG *OHQVLGH DXWKRULW\PXVWVKRZWKDWWKHXQLRQFORDNHGWKHHPSOR\HHZLWK
VXSSRUWHUVFDPSDLJQHGRQRUQHDU*OHQVLGHjVSURSHUW\DQGWKH VXIILFLHQW DXWKRULW\ WR FUHDWH D SHUFHSWLRQ DPRQJ WKH UDQN
UHFRUGIDLOHGWRHVWDEOLVKFOHDUO\ZKHWKHU:LOFRWWKXQJSRVWHUV DQGILOHWKDWWKHHPSOR\HHDFWVRQEHKDOIRIWKHXQLRQDQG
LQWKHSDWLHQWDUHDV:LOFRWWGHQLHGWKDWKHSRVWHGSURXQLRQ WKDWWKHXQLRQGLGQRWGLVDYRZRUUHSXGLDWHWKHHPSOR\HHjV
PDWHULDOVLQWKHSDWLHQWFDUHDUHDV*OHQVLGHjVRQO\HYLGHQFH VWDWHPHQWRUDFWLRQV,G
WRWKHFRQWUDU\ZDV0DUN7\URQH$UPVWURQJjVWHVWLPRQ\WKDW
KHUHPRYHGRQHSURXQLRQSRVWLQJ QHDUWKHIURQWHQWUDQFH %HFDXVHWKHTXHVWLRQRIZKHWKHUVRPHRQHLVDFWLQJDVDQ
)XUWKHUPRUHWKHKHDULQJRIILFHUVWDWHGWKDWWKHVLQJOHH[DPSOH DJHQWRIDXQLRQLVDIDFWXDORQHWKH%RDUGjVILQGLQJVZLWK
RI:LOFRWWjVSURXQLRQSRVWLQJZDVWRRLVRODWHGWRULVHWRWKH UHVSHFW WR TXHVWLRQV RI DJHQF\ LI VXSSRUWHG E\ VXEVWDQWLDO
OHYHORIREMHFWLRQDEOHFRQGXFW:HDJUHHZLWKWKHKHDULQJ HYLGHQFH RQ WKH UHFRUG DV D ZKROH DUH mFRQFOXVLYHl  6HH
RIILFHUjVILQGLQJVSDUWLFXODUO\ZKHUH:LOFRWWZDVQRWD8QLRQ 3DFLILF3O\ZRRG&RY1/5%)GWK&LU
DJHQW FLWLQJ86&†H
2EMHFWLRQ ,QWKLVFDVH*OHQVLGHSUHVHQWHGQRHYLGHQFHWKDWWKH8QLRQ
mLQVWLJDWHG DXWKRUL]HG VROLFLWHG UDWLILHG FRQGRQHG RU
*OHQVLGHDOOHJHVWKDWWKH8QLRQGHIDFHGRQHRIILYH%RDUG DGRSWHGl DQ\ FRQGXFW ZLWK ZKLFK *OHQVLGH REMHFWHG
(OHFWLRQQRWLFHVE\PDUNLQJWKHm\HVlER[*OHQVLGHRIIHUHG )XUWKHUPRUH DVLGH IURP EDUH DVVHUWLRQV *OHQVLGH KDV QRW
WHVWLPRQ\ IURP 0DQDJHU .ROE WR VXSSRUW LWV FODLP  .ROE SURGXFHGHYLGHQFHWKDWWKH8QLRQFORDNHGWKH,32&PHPEHUV
WHVWLILHGWKDWVKHSRVWHGWKHQRWLFHDURXQGDP$W ZLWKVXIILFLHQWDXWKRULW\WRFUHDWHDSHUFHSWLRQWKDWWKH,32&
SP.ROEIRXQGWKHFUXPSOHGQRWLFHRQWKHIORRUQHDUWKH PHPEHUVDFWHGRQWKH8QLRQjVEHKDOI
EXOOHWLQERDUG7KHQRWLFHKDGDODUJHm;lVFULEEOHGPXOWLSOH
WLPHVLQSHQFLODQGFRYHULQJWKHm\RX@ZDONDURXQGWKHIDFLOLW\ZLWKDQDWWLWXGH
OLWHUDWXUHFRQGXFWHGWKHXQLRQjVPHHWLQJVDQGNHSWWUDFNRI 'RQjWZRUU\ELWFK\RXjOOJHW\RXUVl:HDJUHHZLWKERWKWKH
WKH DXWKRUL]DWLRQ FDUGV  :H EHOLHYH WKDW WKH %RDUG KDG %RDUG DQG KHDULQJ RIILFHU  %HFDXVH WKH SHUVRQ RU SHUVRQV
VXEVWDQWLDOHYLGHQFHWRFRQFOXGHWKDWWKH,32&PHPEHUVKDG UHVSRQVLEOH IRU WKHVH LQFLGHQWV DUH XQNQRZQ WKHUH LV QR
VRIHZUHVSRQVLELOLWLHVDQGVXFKOLPLWHGDXWKRULW\WKDWWKH\ UHDVRQWRDWWULEXWHWKHVHLQFLGHQWVWRWKH8QLRQ
 +HDOWKFDUHDQG5HWLUHPHQW 1RV 1RV +HDOWKFDUHDQG5HWLUHPHQW 
&RUSRI$PHULFDY1/5% &RUSRI$PHULFDY1/5%

LQGLFDWHVWKDW*OHQVLGHjVZLWQHVVHVGLGQRWSURYLGHFUHGLEOH FRXOGQRWEHPLVWDNHQIRUDJHQWV.X[0IJ&R)GDW
WHVWLPRQ\7KHWZRFRQWUDGLFWHGHDFKRWKHUZLWKUHJDUGWRWKH 
UDFLDOHSLWKHWDQGRQHFRXOGQRWUHPHPEHUWKHFLUFXPVWDQFHV
VXUURXQGLQJ:LOFRWWjVDOOHJHGVWDWHPHQW ,9
2EMHFWLRQ $
*OHQVLGHDOOHJHVWKDW8QLRQVXSSRUWHUV0DUOHQH%DUQZHOO +DYLQJ WKXV IRXQG WKDW WKH 8QLRQ GLG QRW H[WHQG LWV
sRDQQD%DUQZHOO&DURO)OHXULRDQG5RJHU:LOFRWWWKUHDWHQHG LPSULPDWXU WR WKH DOOHJHG ,32& PHPEHUV PLVFRQGXFW ZH
WKDWLIHPSOR\HHVGLGQRWYRWHIRUWKH8QLRQWKH\ZRXOGORVH JLYH OHVV ZHLJKW WR *OHQVLGHjV DOOHJDWLRQV LQYROYLQJ ,32&
WKHLUMREV+RZHYHU*OHQVLGHjVZLWQHVVHVjWHVWLPRQ\GLGQRW ZURQJGRLQJ LQ GHWHUPLQLQJ ZKHWKHU WKH KHDULQJ RIILFHU
VXSSRUW WKHVH DOOHJDWLRQV  ,Q PDQ\ LQVWDQFHV *OHQVLGHjV SURSHUO\IRXQGWKHHOHFWLRQYDOLG8QGHUVXFKFLUFXPVWDQFHV
ZLWQHVVHVWHVWLILHGWKDWWKHDOOHJDWLRQZDVSXUHUXPRU WKH HOHFWLRQ PXVW EH RYHUWXUQHG RQO\ LI WKH FRQGXFW  ZDV
mVXIILFLHQWO\ VXEVWDQWLDO LQ QDWXUH WR FUHDWH D JHQHUDO
2EMHFWLRQ HQYLURQPHQW RI IHDU DQG UHSULVDO VXFK DV WR UHQGHU D IUHH
FKRLFHRIUHSUHVHQWDWLRQLPSRVVLEOHl+LFNPDQ+DUERU
*OHQVLGHDOOHJHVWKDWXQLRQVXSSRUWHU0DULO\Q&DGHWPDGH 6HUYLFHY1/5%)GWK&LU)RUWKH
DQREVFHQHJHVWXUHWRZDUG&1$'RORUHV+D\HVDQGWROGKHU UHDVRQV RXWOLQHG EHORZ ZH DJUHH ZLWK WKH %RDUG WKDW WKH
VKH KDG EHWWHU YRWH IRU WKH 8QLRQ  ,Q KHU WHVWLPRQ\ DOOHJHG WKUHDWV DQG PLVFRQGXFW GLG QRW WDLQW WKH HQWLUH
KRZHYHU+D\HVH[SUHVVO\GHQLHGWKDW&DGHWWKUHDWHQHGKHU HOHFWLRQ
)XUWKHUPRUHDVWKHKHDULQJRIILFHUKHOGWKHOHZGDFWDORQH
GLGQRWHVWDEOLVKHYLGHQFHRIREMHFWLRQDEOHFRQGXFW %
2EMHFWLRQ $W WKH RXWVHW WKH %RDUGjV FRQFOXVLRQV DV WR PDQ\ RI
*OHQVLGHjV REMHFWLRQV WXUQHG RQ LWV ZLWQHVVHVj FUHGLELOLW\
*OHQVLGH DOOHJHG WKDW ,32& PHPEHU 0DUOHQH %DUQZHOO 0RUHRYHUWKLV&RXUWUHFRJQL]HVWKDWm>W@KHVWDQGDUGRIUHYLHZ
WKUHDWHQHGWRNLOO&1$+LJJVLI+LJJVGLGQRWYRWHIRUWKH IRU WKH %RDUGjV GHWHUPLQDWLRQV RI FUHGLELOLW\ LV QDUURZl
8QLRQ,QDFWXDOLW\+LJJVWHVWLILHGWKDW%DUQZHOOVWDWHGWRQR /RFDO8QLRQ1RY1/5%)GWK&LU
RQHLQSDUWLFXODUmQRRQHJRWR.D\>'LUHFWRURI1XUVLQJ@RU ,WLVWKH%RDUGjVIXQFWLRQWRUHVROYHTXHVWLRQVRIIDFW
>$GPLQLVWUDWRU@/DSRUHZLWKP\QDPH,ZDQWWRJRWRKHDYHQ DQGFUHGLELOLW\ZKHQWKHUHLVDFRQIOLFWLQWKHWHVWLPRQ\6HH
EXW,jOOMXVWKDYHWRGLHDQGJRWRKHOOEHFDXVH,ZRXOGNLOO $GDLU6WDQGLVK&RUSY1/5%)GWK&LU
VRPHRQHl+LJJVDOVRWHVWLILHGWKDW%DUQZHOOmGLGQjWWKUHDWHQ 1/5%Y%DMDjV3ODFH)GWK&LU
WRNLOOPHl SHUFXULDPm7KHGHFLVLRQRIWKH+HDULQJ2IILFHULV
HQWLWOHGWRFRQVLGHUDEOHZHLJKWZKHUHWKHLVVXHWXUQVRQWKH
FUHGLELOLW\RIWKHZLWQHVVHVZKRKHDORQHVDZl&HUWDLQ7HHG
3URG &RUS Y 1/5%  )G   WK &LU 
 7KXVmFUHGLELOLW\GHWHUPLQDWLRQVPXVWEHDFFHSWHGXQOHVVLW
+D\HV WHVWLILHG WKDW DSSUR[LPDWHO\ WZR ZHHNV EHIRUH WKH HOHFWLRQ
&DGHW mJRW PDG DQG SXOOHG XS KHU GUHVV DURXQG KHU ZDLVW DQG WKH RQO\
LV FOHDU WKDW WKHUH LV QR UDWLRQDO EDVLV IRU WKHPl 1/5% Y
WKLQJ , VDZ ZDV MXVW KHU XQGHUSDQWV 7KHQ VKH SDWWHG KHU EHKLQG    DQG
9DOOH\3OD]D,QF)GWK&LU
ZDONHG RXW WKH GRRUl
 +HDOWKFDUHDQG5HWLUHPHQW 1RV 1RV +HDOWKFDUHDQG5HWLUHPHQW 
&RUSRI$PHULFDY1/5% &RUSRI$PHULFDY1/5%

7KLV&RXUWZLOOQRWRYHUWXUQWKH%RDUGjVFUHGLELOLW\ILQGLQJV  )G   WK &LU   :H ILQG WKH KHDULQJ
EDVHG VLPSO\ RQ D FODLP WKDW WKH %RDUG mFUHGLW>HG@ WKH RIILFHUjVUHDVRQLQJDQGFRQFOXVLRQVERWKULJRURXVDQGVRXQG
WHVWLPRQ\RIZLWQHVVHVRIWKH*HQHUDO&RXQVHOPRVWRIWKH
WLPHDQGFUHGLW>HG@WKHWHVWLPRQ\RIWKHZLWQHVVHVRIWKH &
HPSOR\HUKDUGO\DQ\RIWKHWLPH>@l/DQH'UXJ&RY1/5%
)GWK&LU (DFKRI*OHQVLGHjVREMHFWLRQVODFNHGVXEVWDQWLDOHYLGHQFH
,Q IDFW VRPH ZLWQHVVHV FRQWUDGLFWHG HDFK RWKHU VRPH
*OHQVLGHFLWHV1/5%Y&RRN)DPLO\)RRGV/WGIRUWKH ZLWQHVVHVRIIHUHGOD\HUVRIKHDUVD\HYLGHQFHVRPHZLWQHVVHV
SURSRVLWLRQ WKDW mD UHYLHZLQJ FRXUW GRHV QRW DFW DV D PHUH FUHGLWHGWKHLUWHVWLPRQ\WRUXPRUVDQGPXFKRI*OHQVLGHjV
UXEEHUVWDPSIRUWKHDGPLQLVWUDWLYHDJHQF\l)G VXSSRUWLQJ HYLGHQFH ZDV KLJKO\ DPELJXRXV  $OWKRXJK
 WK &LU  LQWHUQDO SXQFWXDWLRQ DQG FLWDWLRQV *OHQVLGH DOOHJHV WKDW WKLV &RXUW PXVW YLHZ LWV REMHFWLRQV
RPLWWHG+RZHYHUZHDOVRVWDWHGLQ&RRN)DPLO\)RRGV FXPXODWLYHO\*OHQVLGHKDVIDLOHGWRVXEVWDQWLDWHDQ\VLQJOH
/WGWKDWmWKLVFRXUWKDVGHFODUHGLWVHOIXQZLOOLQJWRXSKROG REMHFWLRQ7KHEXUGHQLVRQWKHSDUW\VHHNLQJWRRYHUWXUQWKH
XQIDLU ODERU SUDFWLFH ILQGLQJV WKDW UHVW XSRQ WKH HOHFWLRQWRVKRZE\VSHFLILFHYLGHQFHQRWRQO\WKDWXQODZIXO
XQFRUURERUDWHG WHVWLPRQ\ RI SHUVRQV ZKR VWDQG WR UHFHLYH DFWVRFFXUUHGEXWDOVRWKDWVXFKDFWVVXIILFLHQWO\LQKLELWHGWKH
EDFNSD\LIWKHILQGLQJVDUHXSKHOGl,GDWQ7KHUH IUHHFKRLFHRIHPSOR\HHVDVWRDIIHFWPDWHULDOO\WKHUHVXOWVRI
ZH UHMHFWHG WKH WHVWLPRQ\ XSRQ ZKLFK WKH KHDULQJ RIILFHU WKHHOHFWLRQ6HH1/5%Y+DQG\+DUGZDUH:KROHVDOH,QF
UHOLHG EHFDXVH DQ LQWHUHVW LQ EDFNSD\ GLUHFWO\ LQVSLUHG WKH )GWK&LUFLWLQJ)RQHVY1/5%
WHVWLPRQ\WKHZLWQHVVHVJDYH,G )GWK&LU%HFDXVH*OHQVLGHIDLOHGWR
VXEVWDQWLDWH LWV REMHFWLRQV WKH %RDUGjV DFFHSWDQFH RI WKH
,QWKHLQVWDQWFDVHWKHKHDULQJRIILFHUUHOLHGXSRQHYLGHQFH KHDULQJRIILFHUjVFRQFOXVLRQVZDVUHDVRQDEOH
IURPERWK*OHQVLGHDQGWKH8QLRQ,QQXPHURXVLQVWDQFHVDV
RXWOLQHG EHORZ *OHQVLGHjV SURIIHUHG WHVWLPRQ\ GLG QRW 2EMHFWLRQ
VXEVWDQWLDWHLWVDOOHJDWLRQV,QHTXDOO\QXPHURXVLQVWDQFHV
*OHQVLGHjV ZLWQHVVHV GHQLHG DOOHJDWLRQV DQG VRPHWLPHV 9DULRXV *OHQVLGH ZLWQHVVHV WHVWLILHG WKDW ,32& PHPEHU
FRQWUDGLFWHG HDFK RWKHU  7KH VHOILQWHUHVWHG WHVWLPRQ\ 5RJHU:LOFRWWPDGHWKUHDWHQLQJVWDWHPHQWVDQGXVHGDUDFLDO
DGGUHVVHGLQ&RRN)DPLO\)RRGV/WGLVQRWIRXQGKHUHDQG HSLWKHW+RZHYHUWKHWHVWLPRQ\VXUURXQGLQJWKHDFFXUDF\RI
WKHFDVHWKHUHIRUHLVGLVWLQJXLVKDEOH WKHVH DOOHJHG VWDWHPHQWV DQG ZKHWKHU WKH\ RFFXUUHG DW DOO
LQYROYHGFUHGLELOLW\GHWHUPLQDWLRQV7KHKHDULQJRIILFHUZKR
)XUWKHUPRUHm>W@KLVLVQRWDFDVHZKHUHWKHDGPLQLVWUDWLYH KDGDQRSSRUWXQLW\WRH[DPLQHWKHZLWQHVVHVGLUHFWO\UHMHFWHG
ODZ MXGJH PDGH FUHGLELOLW\ GHWHUPLQDWLRQV ZLWKRXW *OHQVLGHjVDOOHJDWLRQV7KHKHDULQJRIILFHUIRXQGWKDWRQHRI
H[SODQDWLRQl&RPPHUFLDO+RQLQJRI'HWURLW/WGY1/5% *OHQVLGHjVZLWQHVVHVWHVWLILHGRQFURVVH[DPLQDWLRQWKDWVKH
)GWK&LU,QKLVGHFLVLRQWKHKHDULQJ ZDVXQFHUWDLQDVWRZKHWKHU:LOFRWWPDGHWKHUDFLDOVOXUDQG
RIILFHU H[SODLQHG LQ GHWDLO KLV UHDVRQV IRU FUHGLWLQJ VRPH DOVRDFNQRZOHGJHGWKDW:LOFRWWKDGLQIRUPHGKHUVKHKDGD
ZLWQHVVHVDQGQRWRWKHUVm7KLVFRXUWLVUHTXLUHGWRUHYLHZ FKRLFHDVWRZKHWKHUWRVXSSRUWWKH8QLRQ$QRWKHU*OHQVLGH
WKHFDVHRQWKHUHFRUGDQGPD\QRWVXEVWLWXWHLWVMXGJPHQWIRU ZLWQHVVFRXOGQRWUHPHPEHUWKHFRQWH[WRUWLPHRIDQ\DOOHJHG
WKDWRIWKH%RDUGRQWKHEDVLVRIµ>V@XVSLFLRQFRQMHFWXUHDQG WKUHDW
WKHRUHWLFDOVSHFXODWLRQjUDWKHUWKDQDSSO\LQJWKHVXEVWDQWLDO
HYLGHQFHVWDQGDUGRIUHYLHZl,GFLWLQJ75:,QFY1/5% ,Q DGGLWLRQ WR D QDUURZ VWDQGDUG RI UHYLHZ IRU ZLWQHVV
FUHGLELOLW\ GHWHUPLQDWLRQV RXU RZQ UHYLHZ RI WKH UHFRUG