Quinn v. Shirey

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

7+20$6 s 48,11 ;
3ODLQWLII$SSHOODQW 

 1R
Y 
!

s2+1 ) 6+,5(<&LW\ 
0DQDJHU&,7< 2) 
&,1&,11$7, 52%(57 
%(',1*+$86 s2+1 '2:/,1 
7+20$6 1(<(5 '$9,' 

.5,1*6 +$0,/721 &2817< 
'HIHQGDQWV$SSHOOHHV 
1
$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&LQFLQQDWL
1Rn+HUPDQs:HEHU'LVWULFWsXGJH
$UJXHG0DUFK
'HFLGHGDQG)LOHGsXQH
%HIRUH%$7&+(/'(5DQG&/$<&LUFXLWsXGJHV
&$55'LVWULFWsXGJH

7KH +RQRUDEOH sDPHV * &DUU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH
1RUWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ


 4XLQQY6KLUH\HWDO 1R

BBBBBBBBBBBBBBBBB
&2816(/
$5*8('  0DUF ' 0H]LERY 6,5.,1 3,1$/(6
0(=,%29 6&+:$57=&LQFLQQDWL2KLRIRU$SSHOODQW
.HUU\ 3 +DVWLQJV 7$)7 67(77,1,86  +2//,67(5
&LQFLQQDWL 2KLR 5RJHU ( )ULHGPDQQ +$0,/721
&2817<3526(&8725j62)),&(&LQFLQQDWL2KLRIRU
$SSHOOHHV21%5,()0DUF'0H]LERY&KULVWLDQ$
sHQNLQV 6,5.,1 3,1$/(6 0(=,%29  6&+:$57=
&LQFLQQDWL2KLRIRU$SSHOODQW.HUU\3+DVWLQJV5RVHPDU\
'RUHHQ &DQWRQ 7$)7 67(77,1,86  +2//,67(5
&LQFLQQDWL2KLR&DUOs6WLFKsU+$0,/721&2817<
3526(&8725j62)),&(&LQFLQQDWL2KLRIRU$SSHOOHHV
BBBBBBBBBBBBBBBBB
23,1,21
BBBBBBBBBBBBBBBBB
&/$<&LUFXLWsXGJH3ODLQWLII7KRPDVs4XLQQDSSHDOV
WKHGLVWULFWFRXUWjV6HSWHPEHURUGHUGLVPLVVLQJKLV
FRPSODLQW SXUVXDQW WR )HG 5 &LY 3 E DJDLQVW WKH
IROORZLQJ 'HIHQGDQWV  WKH &LW\ RI &LQFLQQDWL DQG &LW\
0DQDJHUsRKQ)6KLUH\+DPLOWRQ&RXQW\DQGWKHIROORZLQJ
FRXQW\ERDUGPHPEHUV5REHUW%HGLQJKDXVsRKQ'RZOLQ
DQG 7KRPDV 1H\HU FROOHFWLYHO\ UHIHUUHG WR DV m%RDUGl RU
m%RDUG RI &RPPLVVLRQHUVl DQG +DPLOWRQ &RXQW\
$GPLQLVWUDWRU'DYLG.ULQJV3ODLQWLIIDOOHJHVWKDW'HIHQGDQWV
YLRODWHG KLV FRQVWLWXWLRQDO GXH SURFHVV ULJKWV E\ SXEOLFO\
PDNLQJVWLJPDWL]LQJFRPPHQWVDERXWKLPDQGWKHQIRUFLQJ
KLPWRUHVLJQZLWKRXWDIIRUGLQJKLPGXHSURFHVVLQWKHIRUP
RI D QDPHFOHDULQJ KHDULQJ  7KH GLVWULFW FRXUW GLVPLVVHG
3ODLQWLIIjVFRPSODLQWEHFDXVHRIKLVIDLOXUHWRDOOHJHWKDWKH
KDGUHTXHVWHGDQDPHFOHDULQJKHDULQJ)RUWKHUHDVRQVVHW
RXWEHORZZH$)),50
1R 4XLQQY6KLUH\HWDO 

%$&.*5281'
3URFHGXUDO+LVWRU\
2Q sXO\   3ODLQWLII ILOHG D FRPSODLQW DJDLQVW
'HIHQGDQWVDOOHJLQJWKDW3ODLQWLIIjVFRQVWLWXWLRQDOO\SURWHFWHG
OLEHUW\LQWHUHVWLQKLVUHSXWDWLRQZDVLQIULQJHGZKHQKHZDV
IRUFHG WR UHVLJQ IURP KLV SRVLWLRQ DV GLUHFWRU RI WKH
0HWURSROLWDQ 6HZHU 'LVWULFW m06'l DPLG SXEOLFL]HG
FRPPHQWVPDGHE\'HIHQGDQWVZKRFKDUJHGWKDW3ODLQWLIIKDG
HQJDJHG LQ TXHVWLRQDEOH RU SRVVLEO\ LOOHJDO DFWLYLWLHV
3ODLQWLII VRXJKW LQWHU DOLD FRPSHQVDWRU\ DQG SXQLWLYH
GDPDJHV DQG D QDPHFOHDULQJ KHDULQJ  2Q 6HSWHPEHU 
 WKH &RXQW\ 'HIHQGDQWV ILOHG DQ DQVZHU  2Q
'HFHPEHUWKH&LW\'HIHQGDQWVILOHGDPRWLRQWR
GLVPLVV3ODLQWLIIjVFRPSODLQW7KH&RXQW\'HIHQGDQWVGLGQRW
MRLQWKH&LW\'HIHQGDQWVjPRWLRQWRGLVPLVVRUILOHDPRWLRQ
WR GLVPLVV RI WKHLU RZQ  3ODLQWLII ILOHG D PHPRUDQGXP LQ
RSSRVLWLRQ WR WKH &LW\ 'HIHQGDQWVj PRWLRQ WR GLVPLVV RQ
)HEUXDU\2Q6HSWHPEHUWKHGLVWULFWFRXUW
JUDQWHGWKH&LW\'HIHQGDQWVjPRWLRQDQGGLVPLVVHG3ODLQWLIIjV
FRPSODLQWLQLWVHQWLUHW\DVWRDOO'HIHQGDQWV3ODLQWLIIILOHG
DWLPHO\QRWLFHRIDSSHDORQ2FWREHU
)DFWV
6LQFH +DPLOWRQ &RXQW\ DQG WKH &LW\ RI &LQFLQQDWL
KDYHMRLQWO\RSHUDWHGWKH06'8QGHUDQDJUHHPHQWHQWHUHG
LQWRE\WKRVHWZRHQWLWLHV&LQFLQQDWLSHUIRUPVWKHGD\WRGD\
PDQDJHPHQW RI WKH 06'  +RZHYHU WKH %RDUG UHWDLQV
XOWLPDWH DXWKRULW\ DQG FRQWURO RYHU WKH 06' LQFOXGLQJ
PDQDJHULDOUHVSRQVLELOLW\IRUDGRSWLQJUXOHVDQGUHJXODWLRQV
DQG OHJLVODWLRQ IRU WKH 06'  $OWKRXJK 3ODLQWLII ZDV
mGHVLJQDWHGl D FLW\ HPSOR\HH KH DOOHJHV WKDW KH DOVR KDG
mUHSRUWLQJUHVSRQVLELOLWLHVlWRWKH%RDUG


7KURXJKRXW WKH RSLQLRQ WKH &LW\ RI &LQFLQQDWL DQG 6KLUH\ ZKHQ
UHIHUUHG WR FROOHFWLYHO\ ZLOO KHUHLQDIWHU EH UHIHUUHG WR DV WKH m&LW\
'HIHQGDQWVl :KHQ UHIHUUHG WR FROOHFWLYHO\ WKH UHPDLQLQJ 'HIHQGDQWV
ZLOO EH UHIHUUHG WR DV WKH m&RXQW\ 'HIHQGDQWVl
 4XLQQY6KLUH\HWDO 1R 1R 4XLQQY6KLUH\HWDO 

3ODLQWLIIDOOHJHVWKDWEHJLQQLQJLQWKHVSULQJRIDQG DUJXPHQWVLQDVPXFKDVWKHGLVWULFWFRXUWGLGQRWUHO\XSRQ
FRQWLQXLQJ WKURXJK $SULO  FLW\ DQG FRXQW\ RIILFLDOV WKHP LQ GLVSRVLQJ RI WKLV FDVH  7KLV &RXUW mW\SLFDOO\
SXEOLFO\LVVXHGGLVSDUDJLQJVWDWHPHQWVUHJDUGLQJ3ODLQWLIIDQG UHIUDLQ>V@ IURP FRQVLGHULQJ LVVXHV QRW SDVVHG XSRQ E\ WKH
KLV PLVPDQDJHPHQW RI WKH 06'  +H FRQWHQGV WKDW WKH ORZHUFRXUWVlHVSHFLDOO\ZKHUHWKHLVVXHVLQYROYHXQUHVROYHG
FRPPHQWVmLPSOLHGVXJJHVWHGRUFRQYH\HGWKHLPSUHVVLRQ IDFWXDOGLVSXWHVDQGZKHUHRXUUHIXVDOWRUHDFKWKHVHLVVXHV
WKDW>KH@ZDVDQXQSULQFLSOHGXQVFUXSXORXVVHOIVHUYLQJDQG ZRXOG QRW UHVXOW LQ LQMXVWLFH WR WKH SDUWLHV  3IHQQLJ Y
KHQFHDFRUUXSWSXEOLFDGPLQLVWUDWRUZKRKDGEHQWRULJQRUHG +RXVHKROG&UHGLW6HUYLFHV,QF)GWK
UXOHV DQG PLVXVHG KLV SXEOLF RIILFH WR WKH SURIHVVLRQDO &LUFLWLQJ%OXH&URVV %OXH6KLHOG0XWRI2KLRY
SROLWLFDODQGILQDQFLDODGYDQWDJHRIKLPVHOIDQGKLVIULHQGVl %OXH&URVVDQG%OXH6KLHOG$VVjQ)GWK&LU
s$ DW  ˆ   7KH DOOHJHG FRPPHQWV LQFOXGH  D ,QOLJKWRIRXUKROGLQJWKDWWKHGLVWULFWFRXUWSURSHUO\
&LQFLQQDWL LQWHUQDO DXGLWRU VWDWLQJ WKDW DQ DJUHHPHQW GLVPLVVHG 3ODLQWLIIjV FRPSODLQW LQ LWV HQWLUHW\ EHFDXVH KH
QHJRWLDWHGE\3ODLQWLIIEHWZHHQWKH06'DQGDQLQGHSHQGHQW IDLOHGWRUHTXHVWDQDPHFOHDULQJKHDULQJZHQHHGQRWUHDFK
FRQWUDFWRU ZKLOH QRW LOOHJDO VHUYHG QR YDOLG SXUSRVH DQG WKHRWKHULVVXHVUDLVHGE\'HIHQGDQWV
VKRXOGEHGLVFRQWLQXHGDFLW\FRXQFLOSHUVRQTXHVWLRQLQJ
WKHSURSULHW\RI3ODLQWLIIVHUYLQJRQDERDUGZKLFKVXSHUYLVHG &21&/86,21
ZRUN 3ODLQWLIIjV ZLIH SHUIRUPHG IRU WKH FLW\  WKH VDPH
FRXQFLO SHUVRQ FDOOLQJ IRU mWKH DSSRLQWPHQW RI D VSHFLDO ,QRUGHUIRUDSODLQWLIIWRVKRZWKDWKHKDVEHHQGHSULYHGRI
SURVHFXWRUWRLQYHVWLJDWHZKDWPHGLDUHSRUWVFKDUDFWHUL]HGDV DOLEHUW\LQWHUHVWLQKLVUHSXWDWLRQZLWKRXWGXH SURFHVVWKH
µDOOHJDWLRQVRIZURQJGRLQJjDQGµDOOHJHGLPSURSULHWLHVjl SODLQWLII ILUVW PXVW UHTXHVW D QDPHFOHDULQJ KHDULQJ  ,W LV
'HIHQGDQW%HGLQJKDXVFRPPHQWLQJWKDWKHZDVQRWFRQILGHQW XQGLVSXWHG WKDW 3ODLQWLII IDLOHG WR UHTXHVW D QDPHFOHDULQJ
WKH%RDUGKDGUHFHLYHGWKH mFRPSOHWHVWRU\lUHJDUGLQJWKH KHDULQJEHIRUHILOLQJWKHLQVWDQWDFWLRQDQGWKHGLVWULFWFRXUW
LVVXH RI ZKHWKHU WKH ZDLYHU RI VHZHU WDSLQ IHHV KDG EHHQ SURSHUO\GLVPLVVHGKLVFRPSODLQW:HWKHUHIRUH$)),50
SURSHU DQG FDOOLQJ 3ODLQWLIIjV UHVSRQVH WR LQTXLULHV
mWURXEOHVRPHlVWDWHPHQWVE\WKH%RDUGDQGFLW\RIILFLDOV
WKDWWKH\ZHUHJRLQJWRRUGHUDQDXGLWRIWKH06'RUWKDWVXFK
DQDXGLWZDVDSSURSULDWHIRUWKHSHULRGRI3ODLQWLIIjVWHQXUH
WKH%RDUGjVDQQRXQFHPHQWWKDWLWKDGKLUHGDIRUPHU)%,
DJHQW DQG ZKLWH FROODU FULPH VSHFLDOLVW WR LQYHVWLJDWH
DOOHJDWLRQVRILOOHJDOFRQGXFWE\3ODLQWLIIDQGWKH06'
'HIHQGDQW %HGLQJKDXV FRPPHQWLQJ WKDW 3ODLQWLII mKDG
WUDPSOHG RYHU WKH LQWHQWLRQV RI WKH %RDUGl DQG  WKDW mWKH
HPEDUUDVVPHQWVl FUHDWHG E\ 3ODLQWLII ZHUH RI D mFDUHHU
HQGLQJlQDWXUHVWDWHPHQWVE\WKHPHGLDWKDWDJUDQGMXU\
KDGEHHQLQYHVWLJDWLQJmFKDUJHVRIZURQJGRLQJlE\WKH06'
DQG3ODLQWLIIDQGWKDWWKHmSUREHlKDGmGHHSHQHGIURPFKDUJHV
RIEDGPDQDJHPHQWWRSRWHQWLDOFULPLQDOLW\lDQGRWKHU
VWDWHPHQWVE\FLW\RIILFLDOVFDOOLQJIRU3ODLQWLIIjVWHUPLQDWLRQ
DQGRUVXJJHVWLQJWKDWKHVKRXOGEHWHUPLQDWHGs$DW
ˆ
 4XLQQY6KLUH\HWDO 1R 1R 4XLQQY6KLUH\HWDO 

(YHQZHUHZHWRDJUHHZLWK3ODLQWLIIWKDWEHFDXVHKHRQO\ 3ODLQWLIIDOOHJHVWKDWRQ$SULOKHFRPPXQLFDWHG
DWWHPSWVWREULQJDOLEHUW\LQWHUHVWFODLPKHGLGQRWKDYHWR ZLWK'HIHQGDQW6KLUH\WKDWKHZDVLQQRFHQWRIDOODOOHJDWLRQV
XVHWKHH[DFWZRUGVmQDPHFOHDULQJKHDULQJlLQRUGHUIRUKLV DQGmUHTXHVWHGWKDWWKH&LW\GHIHUDQ\DFWLRQRQWKHUHVROXWLRQ
FODLP WR VXUYLYH KLV UHTXHVW VWLOO ZRXOG KDYH KDG WR WRILUH>KLP@SHQGLQJFRQFOXVLRQRIWKHVHDXGLWDQGJUDQGMXU\
mVXIILFLHQWO\DSSULVHl'HIHQGDQWVRIKLVGHVLUHIRUDKHDULQJ LQYHVWLJDWLRQVl  'HVSLWH KLV UHTXHVW 6KLUH\ DOOHJHGO\ WROG
WR FOHDU KLV QDPH mIROORZLQJ WKH GLVVHPLQDWLRQ RI WKH 3ODLQWLIIWKDWKHZRXOGILUHKLPXQOHVV3ODLQWLIIVXEPLWWHGKLV
VWDWHPHQWVl/XGZLJ)GDW3ODLQWLIIIDLOVWRDOOHJH UHVLJQDWLRQWKHIROORZLQJPRUQLQJ3ODLQWLIIDOOHJHVWKDWKH
WKDWKHLQIRUPHG6KLUH\WKDWKHUHTXHVWHGQRWWREHILUHGVR VXEPLWWHGKLVUHVLJQDWLRQEHFDXVHRI6KLUH\jVXOWLPDWXPDQG
WKDWKHFRXOGFOHDUKLVQDPH(YHQDFFHSWLQJWKHDOOHJDWLRQV WKHFULPLQDODQGFLYLOLQYHVWLJDWLRQVODXQFKHGE\'HIHQGDQWV
LQ 3ODLQWLIIjV FRPSODLQW DV WUXH DQG FRQVWUXLQJ WKHP LQ KLV 3ODLQWLIIDOOHJHVWKDWIRUWKHJRRGRIWKHFLW\DQGWKHFRXQW\
IDYRUZHGRQRWVHHKRZ'HIHQGDQWVFRXOGEHUHTXLUHGWR KHIHOWFRQVWUDLQHGWRWHQGHUKLVUHVLJQDWLRQZKLFKKHGLGRQ
LQWHUSUHW 3ODLQWLIIjV UHTXHVW WR NHHS KLV MRE XQWLO SHQGLQJ $SULO
LQYHVWLJDWLRQVFRQFOXGHGDVEHLQJWDQWDPRXQWWRDUHTXHVWIRU
D QDPHFOHDULQJ KHDULQJ 7KXV WKH GLVWULFW FRXUW SURSHUO\ ',6&866,21
GLVPLVVHG3ODLQWLIIjVFRPSODLQW
,
&$OWHUQDWLYHDUJXPHQWV
7KLV&RXUWUHYLHZVGHQRYRDGLVWULFWFRXUW
VGLVPLVVDORID
)LQDOO\ LQ VXSSRUW RI WKHLU PRWLRQ WR GLVPLVV WKH &LW\ FRPSODLQW XQGHU 5XOH E  +DPPRQGV Y 1RUIRON 6
'HIHQGDQWVUDLVHQXPHURXVDOWHUQDWLYHDUJXPHQWVZKLFKZHUH &RUS  )G   WK &LU  FLWLQJ
DVVHUWHG EHORZ EXW QRW UHDFKHG E\ WKH GLVWULFW FRXUW  7KH 0HUULZHDWKHUY&LW\RI0HPSKLV)GWK&LU
&RXQW\'HIHQGDQWVDOVRUDLVHQXPHURXVDUJXPHQWVRQDSSHDO 7KH&RXUWPXVWmFRQVWUXHWKHFRPSODLQWLQWKHOLJKW
WRVXSSRUWGLVPLVVDORI3ODLQWLIIjVFRPSODLQW+RZHYHUWKH PRVW IDYRUDEOH WR WKH SODLQWLII DQG GHWHUPLQH ZKHWKHU WKH
&RXQW\'HIHQGDQWVDVVHUWHGQRQHRIWKHVHDUJXPHQWVEHORZ SODLQWLIIXQGRXEWHGO\FDQSURYHQRVHWRIIDFWVLQVXSSRUWRI
DQG DV VWDWHG HDUOLHU IDLOHG WR MRLQ WKH &LW\ 'HIHQGDQWVj WKHFODLPVWKDWZRXOGHQWLWOHKLPWRUHOLHIl%ODNHO\Y8QLWHG
PRWLRQWRGLVPLVV3ODLQWLIIXUJHVWKH&RXUWQRWWRUHDFKWKHVH 6WDWHV)GWK&LUTXRWLQJ*UHJRU\Y
6KHOE\ &RXQW\7HQQ)GWK&LU
)XUWKHUWKHDOOHJDWLRQVPXVWEHFRQVWUXHGLQWKHOLJKWPRVW
 IDYRUDEOHWRWKHSODLQWLII0HUWLNY%ODORFN)G
$V VWDWHG WKH &LW\ 'HIHQGDQWV ILOHG D PRWLRQ WR GLVPLVV LQ WKLV FDVH
ZKLFK WKH &RXQW\ IDLOHG WR MRLQ +RZHYHU XQGHU WKH IDFWV RI WKLV FDVH WK&LU
3ODLQWLIIjV FRPSODLQW ZDV SURSHUO\ GLVPLVVHG DV WR DOO 'HIHQGDQWV 6HH ,
6WDU &RPPXQLFDWLRQV &RUS Y &LW\ RI (DVW &OHYHODQG   )6XSS  ,,
 1' 2KLR  KROGLQJ WKDW DOWKRXJK FLW\ GHIHQGDQWV IDLOHG
WR PRYH WR GLVPLVV SODLQWLIIjV FRPSODLQW EHFDXVH WKH LQGLYLGXDO FRXQFLO
PHPEHU GHIHQGDQWV KDG VR PRYHG FRXUW ZRXOG JUDQW GLVPLVVDO DV WR DOO
3ODLQWLIIFRQWHQGVWKDWWKHGLVWULFWFRXUWHUUHGLQGLVPLVVLQJ
GHIHQGDQWV LQDVPXFK DV FRPSODLQW IDLOHG WR VWDWH D FODLP IRU UHOLHI DQG
KLVFRPSODLQWIRUVHYHUDOUHDVRQV+HDUJXHVWKDWQHLWKHUWKH
SODLQWLII KDG RSSRUWXQLW\ WR IXOO\ DGGUHVV DUJXPHQWV WKDW DSSOLHG HTXDOO\ 6XSUHPH&RXUWQRURWKHUFLUFXLWVIROORZWKLVFLUFXLWjVUXOHRI
WR ERWK GHIHQGDQWV:DVKLQJWRQ3HWUROHXP 6XSSO\&RY*LUDUG%DQN  UHTXLULQJDSODLQWLIIWRUHTXHVWDQDPHFOHDULQJKHDULQJDVD
 )6XSS  0' 3D  KROGLQJ WKDW GLVPLVVDO ZDV SURSHU DV SUHUHTXLVLWHWREULQJLQJDVXLWDOOHJLQJGHSULYDWLRQRIDOLEHUW\
WR WZR GLIIHUHQW GHIHQGDQW EDQNV DOWKRXJK RQO\ RQH RI WKHP ILOHG PRWLRQ
LQWHUHVWXQGHUWKHGXHSURFHVVFODXVH+HDUJXHVWKDWVXFKD
WR GLVPLVV ZKHUH ERWK GHIHQGDQWV ZHUH VLPLODUO\ VLWXDWHG DQG SODLQWLII
ZDV DIIRUGHG IXOO DQG IDLU RSSRUWXQLW\ WR UHVSRQG WR DUJXPHQWV FRQFHUQLQJ
UXOH VKLIWV WKH EXUGHQ RI LPSOHPHQWLQJ FRQVWLWXWLRQDO
D EDVLV IRU WKH GLVPLVVDO WKDW DSSOLHG WR ERWK GHIHQGDQWV VDIHJXDUGVIURPWKHSXEOLFHPSOR\HUWRWKHHPSOR\HH+H
 4XLQQY6KLUH\HWDO 1R 1R 4XLQQY6KLUH\HWDO 

FRQWHQGVWKDWLWLVXQIDLUWRIRUFHDSODLQWLIIWRUHTXHVWDQDPH KDGLQIRUPHGWKHGHIHQGDQWVWKDWWKHLQYHVWLJDWLRQLQWRWKH
FOHDULQJKHDULQJDVDSUHUHTXLVLWHWREULQJLQJDGXHSURFHVV FKDUJHVOHYLHGDJDLQVWKLPKDGGHSULYHGKLPRIGXHSURFHVV
OLEHUW\LQWHUHVWVXLWZKHQWKHSODLQWLIIPD\QRWKDYHNQRZQKH ,G DW   )XUWKHU KLV FRPSODLQW FRQWDLQHG VLPLODU
KDGDULJKWWRUHTXHVWVXFKDKHDULQJLQWKHILUVWSODFHDQGWKH DOOHJDWLRQVUHJDUGLQJGHIHQGDQWjVDFWLRQVDQGWKHLQYHVWLJDWLRQ
HPSOR\HUGLGQRWSHUIRUPLWVmDIILUPDWLYHGXW\lRIDSSUL]LQJ DQG D ODFN RI GXH SURFHVV  ,G  7KH &RXUW KHOG WKDW WKHVH
WKHSODLQWLIIRIWKHULJKWWRDKHDULQJ UHIHUHQFHVWRODFNRIGXHSURFHVVZHUHLQVXIILFLHQWWRVKRZWKH
SODLQWLII KDG UHTXHVWHG D QDPHFOHDULQJ KHDULQJ  ,G  7KH
7KH&LW\'HIHQGDQWVFRXQWHUWKDWWKLVFLUFXLWjVSUHFHGHQWLV &RXUW QRWHG WKDW LW ZRXOG KDYH EHHQ LPSRVVLEOH IRU WKH
FOHDULQWKDWDSODLQWLIIPXVWUHTXHVWDQDPHFOHDULQJKHDULQJ GHIHQGDQWVWRWHOOZKHWKHUWKHSODLQWLIIZDVFRPSODLQLQJDERXW
LQRUGHUWREULQJWKHW\SHRIFRQVWLWXWLRQDOFKDOOHQJH3ODLQWLII DODFNRIGXHSURFHVVZLWKUHJDUGWRKLVSURSHUW\LQWHUHVWFODLP
DOOHJHV  7KH &LW\ 'HIHQGDQWV DOVR DUJXH WKDW 3ODLQWLIIjV RU KLV OLEHUW\ LQWHUHVW ULJKWV  ,G  ,Q VR QRWLQJ WKH &RXUW
FRQWHQWLRQ WKDW 'HIHQGDQWV KDG DQ mDIILUPDWLYH GXW\l WR SRLQWHG RXW WKDW LQ WKH )LIWK &LUFXLWjV 5RVHQVWHLQ FDVH WKH
DSSUL]H KLP RI KLV FRQVWLWXWLRQDO ULJKW WR D QDPHFOHDULQJ SODLQWLIIjVUHTXHVWWRmDSSHDOlWKHGHFLVLRQWRWHUPLQDWHKLP
KHDULQJLVUDLVHGIRUWKHILUVWWLPHRQDSSHDOFRQIOLFWVZLWK WKURXJKKLVHPSOR\HUjVHVWDEOLVKHGSURFHGXUHVIRUVRPHWKLQJ
WKLVFLUFXLWjVSUHFHGHQWDQGLVLUUHOHYDQWDV3ODLQWLIIGRHVQRW KH mGLG QRW GRl VXIILFHG DV D UHTXHVW IRU D QDPHFOHDULQJ
FODLP WKDW KH GLG QRW NQRZ KH KDG VXFK D ULJKW EHFDXVH KHDULQJZKHUHWKHRQO\LVVXHZDVWKHWUXWKRUIDOVLW\RIWKH
'HIHQGDQWVIDLOHGWRWHOOKLP FKDUJH WKDW VWLJPDWL]HG KLP  ,G  %HFDXVH WKH SODLQWLII LQ
5RVHQVWHLQRQO\DVVHUWHGDOLEHUW\LQWHUHVWFODLPKLVUHTXHVW
%RWKWKH&LW\DQG&RXQW\'HIHQGDQWVUDLVHRWKHUDUJXPHQWV IRUDQDSSHDODQGGHQLDORIWKHFKDUJHVDJDLQVWKLPVXIILFHGDV
WRVXSSRUWGLVPLVVDORI3ODLQWLIIjVFRPSODLQW)RULQVWDQFH D UHTXHVW IRU D QDPHFOHDULQJ KHDULQJ  6HH 0F0DQDPRQ
'HIHQGDQWVFRQWHQGWKDWWKHVWDWHPHQWVDOOHJHGLQ3ODLQWLIIjV  :/  DW
 Q m7KH FRXUW GLVWLQJXLVKHG
FRPSODLQW DUH LQVXIILFLHQW DV D PDWWHU RI ODZ WR VXSSRUW D 5RVHQVWHLQ LQ /XGZLJ ZKHQ LW UHTXLUHG SODLQWLII WR DVN
GHSULYDWLRQ RI OLEHUW\ LQWHUHVW FODLP DQG WKH &RXQW\ VSHFLILFDOO\IRUDQDPHFOHDULQJKHDULQJZKHUHWKHSODLQWLII
'HIHQGDQWVVSHFLILFDOO\DVVHUWWKDWEHFDXVH3ODLQWLIIZDVQRW UDLVHGERWKOLEHUW\DQGSURSHUW\GHSULYDWLRQFODLPVl
D&RXQW\HPSOR\HHWKHFRXQW\RZHGKLPQRULJKWWRDQDPH
FOHDULQJKHDULQJ ,QWKHLQVWDQWFDVH3ODLQWLIIRQO\DVVHUWVDOLEHUW\LQWHUHVW
FODLP7KXVKHFRQWHQGVWKDWXQOLNHWKHSODLQWLIILQ/XGZLJ
$VZHH[SODLQEHORZ3ODLQWLIIIDLOHGWRUHTXHVWDQDPH KHZDVQRWUHTXLUHGWRXWWHUWKHVSHFLILFZRUGVmQDPHFOHDULQJ
FOHDULQJKHDULQJZKLFKZDVIDWDOWRKLVFODLPDQGWKHUHIRUH KHDULQJlsXVWDVWKHSODLQWLIILQ5RVHQVWHLQGLG3ODLQWLIILQ
WKHGLVWULFWFRXUWSURSHUO\GLVPLVVHGKLVFRPSODLQW WKHLQVWDQWFDVHFODLPHGWKDWKHZDVLQQRFHQWRIWKHFKDUJHV
DJDLQVW KLP  +RZHYHU XQOLNH WKH SODLQWLII LQ 5RVHQVWHLQ
,,, 3ODLQWLII GLG QRW DVN IRU D UHYLHZ WKURXJK DQ HVWDEOLVKHG
DSSHDOVSURFHVVRIWKHGHFLVLRQWRWHUPLQDWHKLP,QGHHGWKH
7KH )RXUWHHQWK $PHQGPHQW IRUELGV VWDWH DFWRUV IURP )LIWK&LUFXLWKDVQRWHGWKDWE\UHTXHVWLQJDQDSSHDOWKURXJK
GHSULYLQJLQGLYLGXDOVRIOLIHOLEHUW\RUSURSHUW\ZLWKRXWGXH VXFK DQ HVWDEOLVKHG SURFHGXUH WKH SODLQWLII  LQ 5RVHQVWHLQ
SURFHVVRIODZ6HH0HUWLN)GDWVHHDOVR%GRI mDVNHG IRU D SXEOLF UHYLHZ RI WKH GHFLVLRQ WR ILUH KLPl
5HJHQWV RI 6WDWH &ROOHJHV Y 5RWK  86   +RZ]H Y &LW\ RI $XVWLQ  )G   WK &LU
sRHOVRQY8QLWHG6WDWHV)GWK&LU 
m7RVXVWDLQDSURFHGXUDOGXHSURFHVVFODLPDSODLQWLII
PXVWILUVWGHPRQVWUDWHWKHH[LVWHQFHRIDSURWHFWHGOLEHUW\RU
SURSHUW\LQWHUHVWl([FHSWLQH[FHSWLRQDOFLUFXPVWDQFHVQRW
 4XLQQY6KLUH\HWDO 1R 1R 4XLQQY6KLUH\HWDO 

3ODLQWLIIVRDOOHJHGLWLVGRXEWIXOWKDW3ODLQWLIIjVFODLPZRXOG DSSOLFDEOHKHUHEHIRUHDSHUVRQLVGHSULYHGRIHLWKHUDOLEHUW\
KDYHVXUYLYHGWKH&LW\'HIHQGDQWVjPRWLRQWRGLVPLVV$V RUSURSHUW\LQWHUHVWKHKDVDULJKWWRVRPHNLQGRIKHDULQJ
VWDWHGDERYHDSODLQWLIIPXVWUHTXHVWDQGEHGHQLHGDQDPH 5RWK86DWQm>$@SHUVRQjVUHSXWDWLRQJRRG
FOHDULQJKHDULQJLQRUGHUWRKDYHEHHQGHSULYHGRIDOLEHUW\ QDPH KRQRU DQG LQWHJULW\ DUH DPRQJ WKH OLEHUW\ LQWHUHVWV
LQWHUHVW ZLWKRXW GXH SURFHVV  %URZQ  )G DW  SURWHFWHG E\ WKH GXH SURFHVV FODXVH RI WKH IRXUWHHQWK
7KHUHIRUHDSODLQWLIIZKRIDLOVWRDOOHJHWKDWKHKDVUHTXHVWHG DPHQGPHQWl&KLOLQJLULDQY%RULV)GWK
DKHDULQJDQGZDVGHQLHGWKHVDPHKDVQRFDXVHRIDFWLRQ &LU   +RZHYHU GHIDPDWLRQ DORQH LV QRW HQRXJK WR
ZKHWKHURUQRWKHKDGEHHQLQIRUPHGRIDULJKWWRDKHDULQJ LQYRNHGXHSURFHVVFRQFHUQV3DXOY'DYLV86
EHIRUHILOLQJVXLW,G 6RPHDOWHUDWLRQRIDULJKWRUVWDWXVmSUHYLRXVO\
UHFRJQL]HG E\ VWDWH ODZl VXFK DV HPSOR\PHQW PXVW
% 3ODLQWLIIjV DOOHJHG UHTXHVW IRU D QDPHFOHDULQJ DFFRPSDQ\WKHGDPDJHWRUHSXWDWLRQ,GDWVHHDOVR
KHDULQJZDVLQDGHTXDWH )HUHQF] Y +DLUVWRQ  )G   WK &LU 
KROGLQJ WKDW DV SXEOLFDWLRQ RI GHIDPDWRU\ FRPPHQWV
3ODLQWLII DOOHJHV LQ KLV FRPSODLQW WKDW KH LQIRUPHG FRPSODLQHGRIZDVQRWDFFRPSDQLHGE\WKHGHSULYDWLRQRIDQ\
'HIHQGDQW 6KLUH\ WKDW KH ZDV LQQRFHQW RI DOO WKH FKDUJHV WDQJLEOH LQWHUHVW VXFK DV FRQWLQXHG HPSOR\PHQW WKH
DJDLQVWKLPDQGUHTXHVWHGWKDWDQ\UHVROXWLRQWRILUHKLPZDLW SXEOLFDWLRQ GLG QRW GHSULYH SODLQWLIIV RI D OLEHUW\ LQWHUHVW
XQWLOWKHDXGLWVDQGJUDQGMXU\LQYHVWLJDWLRQVFRQFOXGHG+H 0HUWLN  )G DW  H[SODLQLQJ WKDW ZKHQ D SODLQWLII
IXUWKHU DOOHJHV WKDW KLV mUHTXHVW ZDV EDVHG RQ WKH IDFW WKDW DOOHJHVmORVVLQIULQJHPHQWRUGHQLDORIDJRYHUQPHQWEHQHILW
SHQGLQJWKHRXWFRPHRIWKHVHSXEOLFLQTXLULHVDQGKHDULQJV SUHYLRXVO\ HQMR\HG    FRXSOHG ZLWK FRPPXQLFDWLRQV E\
LWZRXOGEHLPSRVVLEOHIRU >KLP@WRPHDQLQJIXOO\FOHDUKLV JRYHUQPHQWRIILFLDOVKDYLQJDVWLJPDWL]LQJHIIHFWDFODLPIRU
QDPHRIWKHVWLJPDWKDWKDGEHHQLPSRVHGRQKLPE\UHDVRQ GHSULYDWLRQRIOLEHUW\ZLWKRXWGXHSURFHVVRIODZZLOOOLHl
RI 'HIHQGDQWVj VWDWHPHQWV DQG UHSRUWVl  s$ DW  &RQVHTXHQWO\ZKHQDmQRQWHQXUHGHPSOR\HHVKRZVWKDWKH
3ODLQWLIIDUJXHVWKDWKLVVWDWHPHQWVWR6KLUH\VKRXOGVXIILFHDV KDVEHHQVWLJPDWL]HGE\WKHYROXQWDU\SXEOLFGLVVHPLQDWLRQ
DUHTXHVWIRUDQDPHFOHDULQJKHDULQJ:HGLVDJUHH RIIDOVHLQIRUPDWLRQLQWKHFRXUVHRIDGHFLVLRQWRWHUPLQDWH
KLVHPSOR\PHQWWKHHPSOR\HULVUHTXLUHGWRDIIRUGKLPDQ
7R VXSSRUW KLV DUJXPHQW 3ODLQWLII HVVHQWLDOO\ UHOLHV RQ RSSRUWXQLW\WRFOHDUKLVQDPHl&KLOLQJLULDQ)GDW
/XGZLJ)G,QWKDWFDVHWKLV&RXUWQRWHGWKDWD VHH DOVR 5RWK  86 DW  H[SODLQLQJ WKDW mZKHUH D
OHWWHUDWWDFKHGWRWKHSODLQWLIIjVFRPSODLQWLQGLFDWHGWKDWKH SHUVRQjVJRRGQDPHUHSXWDWLRQKRQRURULQWHJULW\LVDWVWDNH
EHFDXVHRIZKDWWKHJRYHUQPHQWLVGRLQJWRKLPQRWLFHDQG
DQ RSSRUWXQLW\ WR EH KHDUG DUH HVVHQWLDOl &KULVWLDQ Y

'HIHQGDQWV SRLQW RXW WKDW WKLV DOOHJDWLRQ GHIHDWV DQ\ FODLP WKDW
%HOFKHU)GWK&LUH[SODLQLQJWKDW
3ODLQWLII GLG QRW NQRZ KH KDG D ULJKW WR D QDPHFOHDULQJ KHDULQJ LQDVPXFK
GXHSURFHVVFRQFHUQVDUHLPSOLFDWHGZKHUHSXEOLFHPSOR\HU
DV KH FODLPV KLV UHTXHVW QRW WR EH ILUHG XQWLO DIWHU WKH LQYHVWLJDWLRQV ZHUH YROXQWDULO\GLVVHPLQDWHVIDOVHLQIRUPDWLRQLQWKHFRXUVHRID
FRQFOXGHG ZDV EDVHG RQ KLV EHOLHI WKDW KH FRXOG QRW FOHDU KLV QDPH GHFLVLRQWRWHUPLQDWHDQHPSOR\HH$QDPHFOHDULQJKHDULQJ
RWKHUZLVH 3ODLQWLII FRXQWHUV WKDW WR DGRSW VXFK DQ LQWHUSUHWDWLRQ ZRXOG LVUHTXLUHGRQO\LIWKHHPSOR\HUFUHDWHVDIDOVHDQGGHIDPDWRU\
LQ HIIHFW FRQVWUXH WKH DOOHJDWLRQV LQ KLV FRPSODLQW DJDLQVW KLP ZKLFK WKLV
LPSUHVVLRQDERXWDSDUWLFXODUHPSOR\HHLQFRQQHFWLRQZLWKKLV
&RXUW FDQQRW GR RQ D E PRWLRQ 6HH 0HUWLN  )G DW  :H
DJUHH ZLWK 3ODLQWLII WKDW FRQVWUXLQJ WKH DOOHJDWLRQV LQ WKH FRPSODLQW LQ KLV
WHUPLQDWLRQ,G
IDYRU WKHUH LV DQ DUJXDEOH GLVWLQFWLRQ EHWZHHQ KLV UHFRJQLWLRQ WKDW XQWLO
WKH LQYHVWLJDWLRQV LQWR KLV DFWLYLWLHV ZHUH FRQFOXGHG KH FRXOG QRW FOHDU KLV
QDPH RI ZURQJGRLQJ DQG KLV EHLQJ DZDUH WKDW KH KDG D ULJKW WR D QDPH
FOHDULQJ KHDULQJ SHU VH
 4XLQQY6KLUH\HWDO 1R 1R 4XLQQY6KLUH\HWDO 

7KLV&RXUWKDVLGHQWLILHGILYHIDFWRUVWKDWDSODLQWLIIPXVW RIDSSUL]LQJWKHHPSOR\HHWKDWDULJKWWRDKHDULQJH[LVWV+H
VKRZLQRUGHUWRHVWDEOLVKWKDWKHZDVGHSULYHGRIDOLEHUW\ HVVHQWLDOO\ FRQWHQGV WKDW E\ IRUFLQJ D SODLQWLII WR UHTXHVW D
LQWHUHVWDQGHQWLWOHGWRDQDPHFOHDULQJKHDULQJ QDPHFOHDULQJ KHDULQJ EHIRUH EULQJLQJ VXLW ZKHQ WKH
HPSOR\HHPD\QRWKDYHNQRZQRIKLVULJKWWRVXFKDKHDULQJ
)LUVW WKH VWLJPDWL]LQJ VWDWHPHQWV PXVW EH PDGH LQ HIIHFWLYHO\FRQVWLWXWHVDZDLYHURI3ODLQWLIIjVULJKWV6HHHJ
FRQMXQFWLRQ ZLWK WKH SODLQWLIIjV WHUPLQDWLRQ IURP '+2YHUP\HU&R,QFRI2KLRY)ULFN&R86
HPSOR\PHQW6HFRQGDSODLQWLIILVQRWGHSULYHGRI   'RXJODV s FRQFXUULQJ QRWLQJ WKDW D mKHDY\
KLVOLEHUW\LQWHUHVWZKHQWKHHPSOR\HUKDVDOOHJHGPHUHO\ EXUGHQDJDLQVWWKHZDLYHURIFRQVWLWXWLRQDOULJKWVDSSOLHV
LPSURSHU RU LQDGHTXDWH SHUIRUPDQFH LQFRPSHWHQFH HYHQLQFLYLOPDWWHUVl+HDUJXHVWKDW WKHSURFHGXUDOGXH
QHJOHFW RI GXW\ RU PDOIHDVDQFH     7KLUG WKH SURFHVV ULJKW DW LVVXH LQ WKLV FDVH LV QR OHVV ZRUWK\ RI
VWLJPDWL]LQJVWDWHPHQWVRUFKDUJHVPXVWEHPDGHSXEOLF SURWHFWLRQ DJDLQVW XQNQRZLQJ ZDLYHUV WKDQ RWKHU
)RXUWKWKHSODLQWLIIPXVWFODLPWKDWWKH FKDUJHVPDGH FRQVWLWXWLRQDO ULJKWV  %XW VHH 0HUWLN  )G DW 
DJDLQVWKLPZHUHIDOVH/DVWO\WKHSXEOLFGLVVHPLQDWLRQ QRWLQJWKDWWKH6XSUHPH&RXUWKDVQDUURZO\FRQVWUXHGWKH
PXVWKDYHEHHQYROXQWDU\ QDWXUHDQGVFRSHRISURWHFWHGOLEHUW\LQWHUHVWVFLWLQJ6LHJHUW
Y*LOOH\86,QDQ\HYHQWWKLV&RXUWKDV
%URZQY&LW\RI1LRWD)GWK&LU QHYHULPSRVHGDQDIILUPDWLYHGXW\RQDQHPSOR\HUWRDSSUL]H
FLWLQJ/XGZLJY%GRI7UXVWHHV)GWK&LU WKHHPSOR\HHRIKLVULJKWWRDQDPHFOHDULQJKHDULQJ

'HVSLWH3ODLQWLIIjVDUJXPHQWVWRWKHFRQWUDU\ZHEHOLHYH
m2QFHDSODLQWLIIKDVHVWDEOLVKHGWKHH[LVWHQFHRIDOOILYH WKLVFDVHLVLQGLVWLQJXLVKDEOHIURP/XGZLJ,QWKDWFDVHWKH
HOHPHQWV KH LV HQWLWOHG WR D QDPHFOHDULQJ KHDULQJ LI KH &RXUW QRWHG WKDW /XGZLJ KDG QRW FODLPHG WKDW mKH ZDV
UHTXHVWVRQHl%URZQ)GDWFLWLQJ/XGZLJ XQDZDUH KH PD\ EH HQWLWOHG WR D QDPHFOHDULQJ KHDULQJ
)GDW,WLVWKHGHQLDORIWKHQDPHFOHDULQJKHDULQJWKDW EHFDXVHRIWKH8QLYHUVLW\jVIDLOXUHWRJLYHKLPQRWLFHRIVXFK
FDXVHV WKH GHSULYDWLRQ RI WKH OLEHUW\ LQWHUHVW ZLWKRXW GXH DULJKWl,GDWQ,QWKHLQVWDQWFDVH3ODLQWLIIGRHVQRW
SURFHVV%URZQ)GDW7KXVWKHSXEOLFHPSOR\HU FODLPLQKLVUHSO\EULHIWKDWKHZDVXQDZDUHRIKLVULJKWWRD
GHSULYHV DQ HPSOR\HH RI KLV OLEHUW\ LQWHUHVW ZLWKRXW GXH QDPHFOHDULQJKHDULQJ+HDVVHUWVLQVWHDGWKDWmLQWKHDEVHQFH
SURFHVV LI XSRQ UHTXHVW IRU D QDPHFOHDULQJ KHDULQJ WKH RIDQ\HYLGHQFHWKDWWKHGHIHQGDQWVIXOILOOHGWKHLUREOLJDWLRQ
HPSOR\HHLVGHQLHG,GVHHDOVR%DGHQY.RFK)G WRSURYLGHQRWLFHRIWKHULJKWWRDKHDULQJRUWKDW>KH@ZDV
G&LUm,QRUGHUWRVXFFHHGRQKLVOLEHUW\ DZDUH RI VXFK ULJKW VXFK IDFWV FDQQRW EH SUHVXPHG LQ WKH
LQWHUHVW FODLP >SODLQWLII@ PXVW DOVR SURYH WKDW >GHIHQGDQW@ FRQWH[WRID5XOHEPRWLRQl3ODLQWLIIjV5HSO\%UDW
LPSURSHUO\UHIXVHGWRJUDQWKLPDSRVWUHPRYDORSSRUWXQLW\  +RZHYHU/XGZLJDOVRZDVGHFLGHGRQD5XOHE
WRUHIXWHWKHIDOVHFKDUJHVWKDWOHGWRKLVUHPRYDOlDVZLGHO\ PRWLRQWRGLVPLVVsXVWDVWKHSODLQWLIILQWKDWFDVHGLGQRW
SXEOLFL]HG GHURJDWRU\ FRPPHQWV DORQH DPRXQW WR QR PRUH FODLPKHZDVXQDZDUHRIKLVULJKWWRDQDPHFOHDULQJKHDULQJ
WKDQDGHIDPDWLRQFODLPZKLFKLVQRWFRJQL]DEOHXQGHUWKH QHLWKHUGRHV3ODLQWLIILQWKLVFDVHPDNHVXFKDFODLP'HVSLWH
&RQVWLWXWLRQ ,Q UH 6HOFUDLJ  )G   WK &LU WKH IDFW WKDW WR WKH H[WHQW ZH DGGUHVVHG WKH LVVXH RI WKH
m$FRQVWLWXWLRQDOGHSULYDWLRQRIOLEHUW\RFFXUVZKHQ SODLQWLIIjVNQRZOHGJHRIKLVULJKWWRDQDPHFOHDULQJKHDULQJ
WKHUHLVVRPHLQMXU\WRHPSOR\PHQWLQDGGLWLRQWRGDPDJH LQ/XGZLJDWDOOZHH[SUHVVO\QRWHGWKDWWKHSODLQWLIILQWKDW
WR UHSXWDWLRQ DQG D VXEVHTXHQW GHQLDO RI SURFHGXUDO GXH FDVHGLGQRWFODLPWKDWKHODFNHGVXFKNQRZOHGJH3ODLQWLIILQ
SURFHVV>YLDDQDPHFOHDULQJKHDULQJRUWKHOLNH@WRUHGUHVV WKHLQVWDQWFDVHIDLOHGWRDOOHJHWKDWKHGLGQRWNQRZRIKLV
WKDWLQMXU\lHPSKDVLVDGGHG$VWKH)LIWK&LUFXLWSRLQWHG ULJKW WR D QDPHFOHDULQJ KHDULQJ  0RUHRYHU HYHQ KDG
 4XLQQY6KLUH\HWDO 1R 1R 4XLQQY6KLUH\HWDO 

GRHV UHTXLUH WKDW DQ HPSOR\HH UHTXHVW D QDPHFOHDULQJ RXW LQ 6HOFUDLJ WKH mIRXUWHHQWK DPHQGPHQW SURYLGHV RQO\
KHDULQJ SURFHGXUDOSURWHFWLRQDJDLQVWLQMXU\LQIOLFWHGE\VWDWHRIILFHUV
WRWKHLQWHUHVWVWDWHHPSOR\HHVKDYHLQWKHLUUHSXWDWLRQl,G
3ODLQWLIILVFRUUHFWWKDWRXUFDVHVSULRUWR/XGZLJGLGQRW ,QGHHG mWKH ULJKW WR UHFRYHU DULVHV IURP WKH GHQLDO RI D
FOHDUO\ LPSRVH D UHTXLUHPHQW RQ DQ HPSOR\HH WR UHTXHVW D KHDULQJ WR UHIXWH WKH FKDUJHV    >WKXV@ WKH H[WHQW RI WKH
QDPHFOHDULQJKHDULQJDVDSUHUHTXLVLWHWRILOLQJDQDFWLRQ SXEOLFDWLRQZRXOGEHUHOHYDQWRQO\WRWKHDPRXQWRIGDPDJHV
6HH HJ &KULVWLDQ  )G DW  KROGLQJ WKDW VXIIHUHGl,GDWQ
SODLQWLIIjVOLEHUW\LQWHUHVWFODLPIDLOHGLQDVPXFKDVKHIDLOHG
WR DOOHJH SXEOLF GLVFORVXUH RI WKH VWLJPDWL]LQJ FRPPHQWV 7KH SXUSRVH RI D QDPHFOHDULQJ KHDULQJ LV WR DIIRUG WKH
PDGH E\ GHIHQGDQWV ZLWK QR GLVFXVVLRQ SHUWDLQLQJ WR DJJULHYHGHPSOR\HHDQmRSSRUWXQLW\WREHKHDUGWRUHIXWHWKH
SODLQWLIIjV QHHG WR UHTXHVW D QDPHFOHDULQJ KHDULQJ FKDUJHVGLVVHPLQDWHGDJDLQVWKLPl/XGZLJ)GDW
+RZHYHU VLQFH /XGZLJ ZKLFK ZDV GHFLGHG ZHOO EHIRUH 7KHKHDULQJmQHHGRQO\SURYLGHDQRSSRUWXQLW\WRFOHDURQHjV
3ODLQWLIIILOHGKLVFRPSODLQWWKLV&RXUWKDVFRQVLVWHQWO\KHOG QDPH DQG QHHG QRW FRPSO\ ZLWK IRUPDO SURFHGXUHV  WR EH
WKDWDSODLQWLIIjVIDLOXUHWRUHTXHVWDQDPHFOHDULQJKHDULQJLV YDOLGl,G
IDWDO WR D FODLP DOOHJLQJ D GHSULYDWLRQ RI D OLEHUW\ LQWHUHVW
ZLWKRXWGXHSURFHVV6HH%URZQ)GDWVHHDOVR $ 7KLV&RXUWUHTXLUHVSODLQWLIIVWRUHTXHVWDQDPH
6KHDO\Y&DOGZHOO1R:/DW
 FOHDULQJKHDULQJSULRUWREULQJLQJVXLW
WK&LUsXO\KROGLQJWKDWSODLQWLIIjVIDLOXUHWR
UHTXHVW D QDPHFOHDULQJ KHDULQJ ZDV IDWDO WR KHU FODLP 3ODLQWLIIDUJXHVWKDWWKHODZLQWKLVFLUFXLWLVFRQIXVLQJDQG
0F0DQDPRQ:/DW
KROGLQJWKDWSODLQWLII LQFRQVLVWHQW ZLWK UHJDUG WR D SODLQWLIIjV GXW\ WR UHTXHVW D
IDLOHGWRUHTXHVWDQDPHFOHDULQJKHDULQJDQGWKXVVXIIHUHGQR QDPHFOHDULQJ KHDULQJ ZKHQ KH DWWHPSWV WR EULQJ D GXH
GHSULYDWLRQRIKHUOLEHUW\LQWHUHVWSXUVXDQWWR/XGZLJ SURFHVV FODLP LQ FRQQHFWLRQ ZLWK KLV OLEHUW\ LQWHUHVW  +H
FRQWHQGVWKDW/XGZLJ%URZQDQGDQXQSXEOLVKHGGHFLVLRQE\
3ODLQWLII IXUWKHU FRQWHQGV WKDW LW LV XQIDLU WR UHTXLUH WKLV&RXUW0F0DQDPRQY&KDUWHU7RZQVKLSRI5HGIRUG1R
SODLQWLIIV WR UHTXHVW D QDPHFOHDULQJ KHDULQJ ZLWKRXW ILUVW  :/  WK &LU 'HF   \LHOG
HQVXULQJWKDWWKHHPSOR\HUSHUIRUPHGLWVmDIILUPDWLYHGXW\l LQFRQVLVWHQW UHVXOWV  :H GLVDJUHH  )LUVW WKLV SDQHO LV QRW
ERXQGE\0F0DQDPRQLQDVPXFKDVWKDWFDVHLVXQSXEOLVKHG
6HH8QLWHG6WDWHVY%DUQHV)GQWK&LU
   +RZHYHU WKDW FDVH /XGZLJ DQG %URZQ DOO
3ODLQWLII FODLPV WKDW RWKHU FLUFXLWV KDYH GHWHUPLQHG WKDW D SODLQWLIIjV
IDLOXUH VSHFLILFDOO\ WR UHTXHVW D QDPHFOHDULQJ KHDULQJ LV QRW IDWDO WR D FRQVLVWHQWO\KHOGWKDWEHFDXVHRIWKHIDLOXUHRIWKHSODLQWLIIVLQ
GHSULYDWLRQ RI D OLEHUW\ LQWHUHVW FODLP 6HH HJ 2j'RQQHOO Y %DUU\  WKRVHFDVHVWRUHTXHVWDQDPHFOHDULQJKHDULQJWKHLUFODLPV
)G   Q '& &LU  KROGLQJ WKDW D SODLQWLIIjV GXH ZHUHEDUUHG
SURFHVV FODLPV DUH QRW IRUHFORVHG EHFDXVH KH IDLOV mH[SOLFLWO\l WR UHTXHVW
D QDPHFOHDULQJ KHDULQJ mVR ORQJ DV LW LV UHDVRQDEO\ FOHDU WKDW ZKDW WKH
SODLQWLII FRPSODLQV RI LQFOXGHV WKH ODFN RI D KHDULQJl (UVHN Y 7RZQVKLS
,Q /XGZLJ  )G  WKH SODLQWLII D XQLYHUVLW\
RI 6SULQJILHOG  )G   Q G &LU  UHIXVLQJ WR UHDFK WKH
EDVNHWEDOOFRDFKEURXJKWDOLEHUW\LQWHUHVWFODLPDIWHUKHZDV
LVVXH RI ZKHWKHU D SODLQWLII PXVW UHTXHVW D QDPHFOHDULQJ KHDULQJ DQG LQ ILUHG IRU UHSHDWHGO\ PDNLQJ RIIHQVLYH UHPDUNV WR D IRUHLJQ
DQ\ HYHQW DVVXPLQJ WKDW WKH OHWWHU SODLQWLII VHQW WR WKH WRZQVKLS EHIRUH VWXGHQWRQKLVWHDP UHJDUGLQJKLVQDWLRQDOLW\DQGIRURWKHU
LQVWLWXWLQJ KLV VXLW ZKLFK FODLPHG WKDW KH KDG QRW EHHQ DIIRUGHG D FKDQFH DVSHFWVRIKLVSHUIRUPDQFHDVDFRDFK,GDW7KH
WR UHVSRQG WR IDOVH VWDWHPHQWV PDGH DERXW KLP VXIILFHG DV VXFK D UHTXHVW
$V ZH H[SODLQ ODWHU 3ODLQWLII QRW RQO\ IDLOHG WR UHTXHVW D QDPHFOHDULQJ
SODLQWLIIZDVXOWLPDWHO\WHUPLQDWHG,GDW)ROORZLQJ
KHDULQJ EXW IDLOHG DGHTXDWHO\ WR DSSUL]H 'HIHQGDQWV LQ DQ\ ZD\ WKDW KH
WKDWGHFLVLRQWKHXQLYHUVLW\jVPDUNHWLQJGHSDUWPHQWLVVXHG
VRXJKW DQ RSSRUWXQLW\ WR UHVSRQG WR WKH FKDUJHV EURXJKW DJDLQVW KLP VWDWHPHQWVWRWKHQHZVPHGLDGLVFXVVLQJWKHFLUFXPVWDQFHV
 4XLQQY6KLUH\HWDO 1R 1R 4XLQQY6KLUH\HWDO 

VXUURXQGLQJ WKH SODLQWLIIjV WHUPLQDWLRQ  ,G  6RPH RI WKH SODLQWLIIV *HUDOG %URZQ DQG 1LFN ' $QGHUVRQ ZHUH ILUHG
DUWLFOHVTXRWHGXQLYHUVLW\RIILFLDOVDQGFRQWDLQHGDOOHJDWLRQV IURPWKHLUSRVLWLRQVDVDIXOOWLPHSROLFHRIILFHUDQGDSDUW
WKDWWKHSODLQWLIIKDGWULHGWRSHUVXDGHVWXGHQWVRQVFKRODUVKLS WLPHUHVHUYHRIILFHUUHVSHFWLYHO\DIWHU%URZQSXVKHGDFLW\
WRWUDQVIHUVRWKDWWKHLUVFKRODUVKLSVFRXOGEHXVHGE\RWKHU UHVLGHQWGXULQJWKHFRXUVHRIDQLQYHVWLJDWLRQ,GDW
VWXGHQWV  ,G  7KH DUWLFOHV DOVR GLVFXVVHG WKH SODLQWLIIjV $QGHUVRQZDVRIILFLDOO\WHUPLQDWHGEHFDXVHKHZRUNHGERWK
DOOHJHG XVH RI HWKQLF VOXUV  ,G  7KH SODLQWLII ILOHG VXLW IRUWKHILUHDQGSROLFHGHSDUWPHQWVZKLFKWKH1LRWDERDUGRI
DOOHJLQJWKDWWKHGHIHQGDQWVKDGGHSULYHGKLPRIERWKD FRPPLVVLRQHUV ZKR PDGH WKH HPSOR\PHQW GHFLVLRQV
SURSHUW\LQWHUHVWEHFDXVHKHKDGEHHQVXVSHQGHGZLWKRXWSD\ GHWHUPLQHG WR EH D FRQIOLFW RI LQWHUHVW  ,G DW   2Q
EHIRUHKHZDVWHUPLQDWHGDQGKLVOLEHUW\LQWHUHVWEHFDXVH )HEUXDU\WKHSODLQWLIIVPDLOHGDOHWWHUWR1LRWDjV
WKHSXEOLFVWDWHPHQWVLVVXHGUHJDUGLQJKLVWHUPLQDWLRQZHUH PD\RUUHTXHVWLQJWKDWVKHJUDQWWKHPDQDPHFOHDULQJKHDULQJ
IDOVH  ,G  7KH GLVWULFW FRXUW GLVPLVVHG WKH 3ODLQWLIIjV E\)HEUXDU\DQGVWDWLQJWKDWLIVKHGLGQRWUHVSRQG
FRPSODLQW E\WKDWGDWHWKH\ZRXOGWDNHIXUWKHUDFWLRQ,G+RZHYHUWKH
SODLQWLIIVILOHGVXLWEHIRUHWKHPD\RUUHFHLYHGWKHLUOHWWHU
$IILUPLQJ WKH GLVPLVVDO RQ JURXQGV GLIIHUHQW WKDQ WKRVH
UHOLHG RQ E\ WKH GLVWULFW FRXUW WKLV &RXUW  KHOG WKDW WKH 7KHSODLQWLIIVLQ%URZQDVVHUWHGWKDWWKH\ZHUHGHQLHGERWK
SODLQWLIIjVIDLOXUHWRUHTXHVWDQDPHFOHDULQJKHDULQJZDVIDWDO WKHLUSURSHUW\DQGOLEHUW\LQWHUHVWVZLWKRXWGXHSURFHVVRIODZ
WRKLVOLEHUW\LQWHUHVWFODLP,GDW7KH&RXUWVSHFLILFDOO\ E\ WKH WHUPLQDWLRQ SURFHHGLQJV FRQGXFWHG E\ WKH ERDUG RI
KHOGWKDWDSODLQWLIILVHQWLWOHGWRQRWLFHDQGRSSRUWXQLW\WREH FRPPLVVLRQHUV  ,G  7KLV &RXUW UHMHFWHG WKH SODLQWLIIVj
KHDUGLQDQDPHFOHDULQJKHDULQJZKHQKHUHTXHVWVDKHDULQJ SURSHUW\LQWHUHVWFODLPVE\GHWHUPLQLQJWKDWWKH\ZHUHDWZLOO
,GDW,QQRWLQJWKDWDQDPHFOHDULQJKHDULQJLVUHTXLUHG HPSOR\HHVZLWKQRVXFKLQWHUHVWLQWKHLUHPSOR\PHQW,GDW
RQO\LIWKHSODLQWLIIUHTXHVWVRQHWKLV&RXUWFLWHGWZRRSLQLRQV 7KH&RXUWDOVRUHMHFWHGWKHLUOLEHUW\LQWHUHVWFODLPV
IURPWKH)LIWK&LUFXLW,GDWFLWLQJ*LOOXPY&LW\RI EHFDXVHDOWKRXJKWKHSODLQWLIIVFOHDUO\KDGUHTXHVWHGDQDPH
.HUUYLOOH)GWK&LU5RVHQVWHLQY&LW\ FOHDULQJKHDULQJWKHUHTXHVWKDGQRWEHHQGHQLHGEHIRUHWKH\
RI 'DOODV  )G   WK &LU  UHKHDULQJ ILOHGVXLW,GDW7KH&RXUWKHOGWKDWEHIRUHWKHSODLQWLIIV
JUDQWHGDQGRSLQLRQUHLQVWDWHGLQUHOHYDQWSDUWE\)G FRXOGVKRZWKH\KDGEHHQGHSULYHGRIWKHLUOLEHUW\LQWHUHVWV
WK&LU7KH&RXUWLQ/XGZLJDOVRQRWHGWKDWLQ ZLWKRXWGXHSURFHVVWKH\ZRXOGKDYHWRVKRZWKH\UHTXHVWHG
mSULRUFDVHVlWKH)LIWK&LUFXLWKDGmLPSRVHGDUHTXLUHPHQW DQG KDG EHHQ GHQLHG D KHDULQJ  7KLV WKH\ KDG QRW GRQH
XSRQWKHSXEOLFHPSOR\HUWKDWLWPDNHNQRZQWRWKHHPSOR\HH DFFRUGLQJWRWKH&RXUWm$WWKHWLPHWKLVFRPSODLQWZDVILOHG
WKDW KH PD\ KDYH DQ RSSRUWXQLW\ WR FOHDU KLV QDPH XSRQ WKHSODLQWLIIVKDGQRWVXIIHUHGDGHSULYDWLRQRIWKHLUOLEHUW\
UHTXHVWl  /XGZLJ  )G DW  Q QRWLQJ WKDW WKH LQWHUHVWZLWKRXWGXHSURFHVVRIODZEHFDXVHWKH\KDGQRWEHHQ
(OHYHQWK&LUFXLWDOVRLPSRVHVVXFKDUHTXLUHPHQWFLWDWLRQV GHQLHGDQDPHFOHDULQJKHDULQJE\WKHFLW\l,G
DQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG+RZHYHUWKLV&RXUW
QRWHGWKDWm>L@QWKHLQVWDQWFDVH/XGZLJGRHVQRWFODLPKH 7KHVHFDVHVFOHDUO\H[SODLQWKDWEHIRUHDVVHUWLQJKLVOLEHUW\
ZDVXQDZDUHKHPD\EHHQWLWOHGWRDQDPHFOHDULQJKHDULQJ LQWHUHVW FODLP 3ODLQWLII ZDV UHTXLUHG WR VKRZ WKDW KH
EHFDXVHRIWKH8QLYHUVLW\jVIDLOXUHWRJLYHKLPQRWLFHRIVXFK UHTXHVWHG D QDPHFOHDULQJ KHDULQJ DQG ZDV GHQLHG WKDW
DULJKWl,G KHDULQJ%URZQ)GDW/XGZLJ)GDW
:KLOH3ODLQWLIIDUJXHVWKDWDGLIIHUHQWVWDQGDUGPD\H[LVW
7KLV &RXUW DJDLQ DGGUHVVHG WKH GXW\ RI DQ HPSOR\HH WR LQ VRPH RWKHU FLUFXLWV DQG WKDW WKH 6XSUHPH &RXUW KDV QRW
UHTXHVWDQDPHFOHDULQJKHDULQJLQDVXLWDOOHJLQJGHSULYDWLRQ DGGUHVVHGWKHLVVXHWKLV&RXUWKDVVSRNHQRQWKHLVVXHDQG
RIDOLEHUW\LQWHUHVWLQ%URZQ)G,QWKDWFDVHWKH