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 52%(57 &+$0%(56 s($1 ; &+$0%(56 /$85(1 +2//$1' 6$5$+ +2//$1' 1RV 6WDWHRI2KLRH[UHO 3ODLQWLIIV$SSHOOHHV ! &URVV$SSHOODQWV *5$+$0 0&&/(//$1' 5$16%27720 &2 /3$ 0$126 0$57,1 3(5*5$0 ',(7= &2 /3$ :,//,$0 s %52:1,1* $WWRUQH\V$SSHOOHHV &URVV$SSHOODQWV Y 2+,2 '(3$570(17 2) +80$1 6(59,&(6 s$&48(/,1( 520(56(16.< LQKHURIILFLDOFDSDFLW\ 'HIHQGDQWV$SSHOODQWV &URVV$SSHOOHHV 1 &KDPEHUVHWDOY2KLR 1RV 'HSjWRI+XPDQ6HUYVHWDO $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1Rn(GPXQG$6DUJXVsU'LVWULFWsXGJH $UJXHGsXQH 'HFLGHGDQG)LOHG'HFHPEHU %HIRUH%2**6DQG68+5+(,15,&+&LUFXLWsXGJHV &/(/$1''LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' sRKQ 7 :LOOLDPV 2)),&( 2) 7+( $77251(<*(1(5$/2)2+,2+($/7+ +80$1 6(59,&(6 6(&7,21 &ROXPEXV 2KLR IRU $SSHOODQWV sRKQs.XOHZLF]925<66$7(56(<0285 3($6( //3&ROXPEXV2KLRIRU$SSHOOHHV21%5,()sRKQ7 :LOOLDPV3DWULFN:%HDWW\2)),&(2)7+($77251(< *(1(5$/ 2) 2+,2 +($/7+ +80$1 6(59,&(6 6(&7,21 &ROXPEXV 2KLR IRU $SSHOODQWV sRKQ s .XOHZLF] 925<6 6$7(5 6(<0285 3($6( //3 &ROXPEXV2KLR'HQQLV/3HUJUDP0$1260$57,1 3(5*5$0 ',(7=:RUWKLQJWRQ2KLRIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB &/(/$1''LVWULFWsXGJH7KLVFDVHLVEHIRUHWKH6L[WK &LUFXLW IRU D VHFRQG WLPH 2Q WKH ILUVW DSSHDO WKH GLVWULFW FRXUWjVVXPPDU\MXGJPHQWLQ3ODLQWLIIVjIDYRUZDVUHYHUVHG DQGWKHFDVHUHPDQGHGIRUIXUWKHUSURFHHGLQJVWHUPLQDWLQJWKH 7KH +RQRUDEOH 5REHUW + &OHODQG 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ &KDPEHUVHWDOY2KLR 1RV 1RV &KDPEHUVHWDOY2KLR 'HSjWRI+XPDQ6HUYVHWDO 'HSjWRI+XPDQ6HUYVHWDO 6LPLODUO\ WKLV FDVH FDQQRW VXUYLYH WKH UXOH VHW IRUWK LQ FDVHLQ'HIHQGDQWVjIDYRU6HH&KDPEHUVY2KLR'HSjWRI %XFNKDQQRQ7KHGLVWULFWFRXUWH[SUHVVO\UHOLHGXSRQWKH +XPDQ6HUYV)GWK&LU7KHLVVXHQRZ FDWDO\VW WKHRU\ LQ JUDQWLQJ 3ODLQWLIIVj PRWLRQ IRU DWWRUQH\V SUHVHQWHGFRQFHUQVWKHSURSULHW\RIDWWRUQH\VIHHVDZDUGHGE\ IHHV 2UGHU DW s$ DW ,W GLG VR WKHGLVWULFWFRXUWWRSODLQWLIIVjFRXQVHORQWKHmFDWDO\VWWKHRU\l KRZHYHU RQO\ WR WKH mOLPLWHGl H[WHQW WKDW WKH 2'+6 KDG RI VXFFHVV DV D mSUHYDLOLQJ SDUW\l 7KH 6XSUHPH &RXUWjV PRGLILHGLWVUHJXODWLRQVDQGQRWLFHUHTXLUHPHQWV,G7KH UHFHQWRSLQLRQLQ%XFNKDQQRQ%GDQG&DUH+RPH,QFY GLVWULFWFRXUWDFNQRZOHGJHGWKDWWKRVHPRGLILFDWLRQVKDGEHHQ :9'HSjWRI+HDOWKDQG+XPDQ5HVRXUFHV86 LPSOHPHQWHGE\WKH2'+6SULRUWRDQ\FRXUWDGMXGLFDWLRQRI 6&WKDVPDGHFOHDUWKDWWRmSUHYDLOlWKHSDUW\ WKHPDWWHU2UGHUDWs$DW,WWKXV PXVWKDYHREWDLQHGDFKDQJHLQWKHOHJDOUHODWLRQVKLSRIWKH FDQQRW EH GLVSXWHG WKDW DQ\ FKDQJH LQ OHJDO UHODWLRQVKLS SDUWLHV WKDW RULJLQDWHG LQ D FRXUW RUGHU RU WKDW KDG DW OHDVW EHWZHHQ 3ODLQWLIIV DQG WKH 2'+6 ZDV QRW mMXGLFLDOO\ UHFHLYHGMXGLFLDOVDQFWLRQ7KHFDWDO\VWWKHRU\RIVXFFHVVWKXV VDQFWLRQHGl $FFRUGLQJO\ WKH GLVWULFW FRXUWjV DZDUG RI LVQRORQJHUDSHUPLVVLEOHEDVLVIRUDZDUGLQJDWWRUQH\VIHHV DWWRUQH\VIHHVLV5(9(56(' :HPXVWUHYHUVH ,%DFNJURXQG 3ODLQWLIIV$SSHOOHHV 5REHUW &KDPEHUV sHDQ &KDPEHUV /DXUHQ+ROODQGDQG6DUDK+ROODQGFROOHFWLYHO\m3ODLQWLIIVl FRPPHQFHGWKLVFODVVDFWLRQSXUVXDQWWR86& FKDOOHQJLQJDGPLQLVWUDWLYHUXOHVSURPXOJDWHGE\'HIHQGDQW 3ODLQWLIIV FODLP WKDW WKH 2'+6 ZDLYHG WKLV DUJXPHQW LV ZLWKRXW 2KLR'HSDUWPHQWRI+XPDQ6HUYLFHVmWKH2'+6lWKDWZHUH IRXQGDWLRQ $W WKH sDQXDU\ KHDULQJ RQ WKH DPRXQW RI DWWRUQH\V XWLOL]HG LQ GHWHUPLQLQJ WKH HOLJLELOLW\ RI LQVWLWXWLRQDOL]HG IHHV WR EH DZDUGHG WKH GLVWULFW FRXUW VWDWHG WR FRXQVHO IRU 2'+6 DV IROORZV VSRXVHV IRU 0HGLFDLG EHQHILWV 2Q FURVV PRWLRQV IRU VXPPDU\ MXGJPHQW WKH GLVWULFW FRXUW UXOHG LQ 3ODLQWLIIVj , XQGHUVWDQG \RX KDYH LQGLFDWHG LQ \RXU EULHILQJ WKDW REYLRXVO\ IDYRU RUGHULQJ WKH 2'+6 WR DOWHU LWV LQWHUSUHWDWLRQ RI WKH WKH GHIHQGDQWV GRQjW DJUHH ZLWK WKH FDWDO\VW WKHRU\ DV DSSURSULDWH IHGHUDO0HGLFDLGODZV7KLVFRXUWUHYHUVHGRQDSSHDOILQGLQJ KHUH , GRQjW PHDQ WR JORVV RYHU WKDW 7KDWjV VR QRWHG %XW ZLWK WKHUHOHYDQWVWDWXWRU\ODQJXDJHDPELJXRXVDQGXSKROGLQJWKH WKDW LQ PLQG REYLRXVO\ WKH &RXUW LV SUHSDUHG WR PRYH WR WKH QH[W VWHS 0HGLFDLG ODZV@ VHFXULQJ VRPH RI WKH EHQHILWV WKH\ ZHUH VHHNLQJ YLD WKH >ZDV@ UHDVRQDEOH DQG SHUPLVVLEOHloFDVWV VHULRXV GRXEW XSRQ WKH ODZVXLWEDVHGRQWKH2'+6FKDQJHV8SRQWKLVWKHRU\RI DSSURSULDWHQHVV RI WKH IHH DZDUG HYHQ ZLWKRXW WKH %XFNDKDQQRQ GHFLVLRQ YLUWXDOYLFWRU\FRXQVHOIRU3ODLQWLIIVPRYHGWKHGLVWULFWFRXUW 6HH &KDPEHUV )G DW &KDPEHUVHWDOY2KLR 1RV 1RV &KDPEHUVHWDOY2KLR 'HSjWRI+XPDQ6HUYVHWDO 'HSjWRI+XPDQ6HUYVHWDO IRU DWWRUQH\V IHHV XQGHU WKH &LYLO 5LJKWV $WWRUQH\jV )HHV HQIRUFHDEOH MXGJPHQW VHWWOHPHQW RU FRPSDUDEOH W\SH RI $ZDUGV$FWRIZKLFKDOORZVDGLVWULFWFRXUWLQD UHOLHIRUDYROXQWDU\FKDQJHLQDGHIHQGDQWjVEHKDYLRUZLOO DFWLRQWRDZDUGDWWRUQH\VIHHVWRmWKHSUHYDLOLQJSDUW\l6HH mJHQHUDOO\PDNHDSODLQWLIIDµSUHYDLOLQJSDUW\jl 86& 7KH GLVWULFW FRXUW JUDQWHG WKH PRWLRQ ILQGLQJWKDW3ODLQWLIIVZHUHDmSUHYDLOLQJSDUW\lXQGHUWKHVR 7KH SDUWLHV LQ WKLV PDWWHU LQLWLDOO\ SURFHHGHG XQGHU WKH FDOOHGFDWDO\VWWKHRU\7KLVDSSHDOIROORZHG DVVXPSWLRQ WKDW WKH DQDO\VLV RI sRKQVWRQ DQG LWV SURJHQ\ ZRXOG JRYHUQ WKHLU DSSHDO $IWHU WKH SDUWLHV FRPSOHWHG ,,'LVFXVVLRQ EULHILQJWKHPDWWHUKRZHYHUWKH6XSUHPH&RXUWLVVXHGDQ RSLQLRQLQYDOLGDWLQJWKHFDWDO\VWWKHRU\DVDSHUPLVVLEOHEDVLV 7KHFDWDO\VWWKHRU\IRUDZDUGLQJDWWRUQH\VIHHVZDVILUVW IRU DZDUGLQJ DWWRUQH\V IHHV %XFNKDQQRQ %G DQG &DUH DGRSWHGE\WKLVFRXUWLQsRKQVWRQYsDJR)GWK +RPH,QFY:9'HSjWRI+HDOWKDQG+XPDQ5HVRXUFHV &LU7KHSODLQWLIILQWKDWFDVHKDGILOHGDFLYLOULJKWV 866&W7KH&RXUWFRQFOXGHGWKDWWR DFWLRQ LQ IHGHUDO FRXUW EDVHG XSRQ KLV GLVPLVVDO IURP mSUHYDLOlDQGWKXVEHFRPHHOLJLEOHIRUDWWRUQH\VIHHVDSDUW\ HPSOR\PHQWDVDVWDWHFRUUHFWLRQVRIILFHU:KLOHPDLQWDLQLQJ PXVW KDYH REWDLQHG mD MXGLFLDOO\ VDQFWLRQHG FKDQJH LQ WKH KLV DFWLRQ LQ IHGHUDO FRXUW WKH SODLQWLII VLPXOWDQHRXVO\ OHJDO UHODWLRQVKLS RI WKH SDUWLHVl ,G DW HPSKDVLV SURVHFXWHGDQDGPLQLVWUDWLYHDSSHDOZKLFKXOWLPDWHO\VHWWOHG DGGHG0RUHVSHFLILFDOO\WKH&RXUWQRWHGWKDWDQDZDUGRI LQKLVIDYRU3XUVXDQWWRWKHVHWWOHPHQWGHFUHHWKHSODLQWLII DWWRUQH\VIHHVLVDSSURSULDWHZKHUHDSODLQWLIIKDVREWDLQHGDQ ZDV UHTXLUHG WR mWDNH DOO VWHSV QHFHVVDU\ WR HIIHFWXDWH D mHQIRUFHDEOHMXGJPHQW>@RQWKHPHULWVlRUDmFRXUWRUGHUHG ZLWKGUDZDOl RI KLV IHGHUDO ODZVXLW 2QH VWHS GHHPHG FRQVHQWGHFUHH>@lEXWQRWXQGHUWKHFDWDO\VWWKHRU\ZKLFK QHFHVVDU\ZDVWRPRYHIRUDWWRUQH\VIHHVZKLFKZHUHJUDQWHG mDOORZV DQ DZDUG ZKHUH WKHUH LV QR MXGLFLDOO\ VDQFWLRQHG E\WKHGLVWULFWFRXUW2QDSSHDOWKLVFRXUWDIILUPHGWKHDZDUG FKDQJHLQWKHOHJDOUHODWLRQVKLSRIWKHSDUWLHVl,G7KXVWKH FRQFOXGLQJ WKDW D SODLQWLII ZKR REWDLQHG UHOLHI WKURXJK D &RXUW FRQFOXGHG WKDW m>D@ GHIHQGDQWjV YROXQWDU\ FKDQJH LQ VHWWOHPHQWZDVDmSUHYDLOLQJSDUW\lDVORQJDVWKDWSODLQWLII FRQGXFWDOWKRXJKSHUKDSVDFFRPSOLVKLQJZKDWWKHSODLQWLII FRXOGmGHPRQVWUDWHWKDWKLVRUKHUODZVXLWZDVFDXVDOO\ VRXJKWWRDFKLHYHE\WKHODZVXLWODFNVWKHQHFHVVDU\MXGLFLDO UHODWHG WR VHFXULQJ WKH UHOLHI REWDLQHGl DQG mHVWDEOLVK LPSULPDWXU RQ WKH FKDQJHl ,G 3URFHHGLQJ IURP WKLV VRPHPLQLPXPEDVLVLQODZIRUWKHUHOLHIVHFXUHGl,GDW DQDO\VLVWKH&RXUWFDWHJRULFDOO\UHMHFWHGWKHFDWDO\VWWKHRU\DV FLWLQJ1DGHDXY+HOJHPRH)GVW&LU DSHUPLVVLEOHEDVLVIRUDZDUGLQJDWWRUQH\jVIHHV,GDW :HIRXQGRImQRFRQVHTXHQFHlWKHIDFWWKDWWKHVHWWOHPHQW 7RWKHH[WHQWsRKQVWRQDQGLWVSURJHQ\GLVDJUHHWKH\KDYH KDGEHHQQHJRWLDWHGLQDVHSDUDWHDOEHLWUHODWHGSURFHHGLQJ EHHQRYHUUXOHGE\%XFNKDQQRQ ,GDW ,QVXEVHTXHQWFDVHVZHFRQVLVWHQWO\KDYHUHDIILUPHGWKDWD SODLQWLII ZKR UHFHLYHV VRPH RI WKH UHOLHI VRXJKW LQ D ODZVXLWoZKHWKHUWKURXJKVHWWOHPHQWRUYROXQWDU\DFWLRQWDNHQ E\ WKH GHIHQGDQWoFDQ EH D SUHYDLOLQJ SDUW\ mGHVSLWH WKH DEVHQFHRIDIRUPDOMXGJPHQWl:RROULGJHY0DUOHQH,QGXV &RUS )G WK &LU VHH DOVR $OWKRXJK %XFNKDQQRQ LQYROYHG WKH DZDUG RI DWWRUQH\V IHHV XQGHU D GLIIHUHQW VWDWXWH WKDQ LV DW LVVXH KHUH WKH &RXUW H[SUHVVO\ VWDWHG WKDW DOO 2ZQHU2SHUDWRU,QGHSHQGHQW'ULYHUV$VVjQ,QFY%LVVHOO VWDWXWHVoLQFOXGLQJ oWKDW DXWKRUL]H DWWRUQH\jV IHHV WR WKH mSUHYDLOLQJ )G WK &LU REVHUYLQJ WKDW DQ SDUW\l DUH WR EH WUHDWHG FRQVLVWHQWO\ %XFNKDQQRQ 86 6 &W DW Q