In re: Desilets v.

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  ,QUH'HVLOHWV 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU SUHVHUYDWLRQ RI GHFRUXP DQG IRU WKH UHVSHFWDELOLW\ RI WKH )LOH 1DPH DS SURIHVVLRQl([SDUWH%XUU86 :KHDW    ,QDGGLWLRQLIZHIROORZsXGJH%RJJVjUHDVRQLQJIRUWKH 81,7('67$7(6&28572)$33($/6 FRXUW OLFHQVLQJ LQ IHGHUDO FRXUW EHFRPHV DQ H[FOXVLYHO\ IHGHUDO PDWWHU ZLWKRXW JLYLQJ FUHGHQFH RU FRPLW\ WR WKH )257+(6,;7+&,5&8,7 OLFHQVLQJUHTXLUHPHQWVRIWKHVWDWHFRXUWV)HGHUDOLVPPD\EH BBBBBBBBBBBBBBBBB ZDQLQJEXW,DPQRWUHDG\ WRVHWXSDQDWLRQDOV\VWHPIRU OLFHQVLQJUHPRYLQJDQGUHJXODWLQJIHGHUDOSUDFWLFH,DPQRW UHDG\WRVD\DORQJZLWKP\FROOHDJXHVWKDWmµDSSOLFDEOHODZj ,QUH(51(67 s '(6,/(76 ; DXWKRUL]LQJDQDWWRUQH\WRSUDFWLFHFRQVLVWVVROHO\RIWKH 'HEWRU  IHGHUDOUXOHVIRUDGPLVVLRQWRWKHIHGHUDOEDUlZLWKRXWUHJDUG BBBBBBBBBBBBBBBBBBBBBBBB  WRmVWDWHUXOHVIRUDGPLVVLRQWRWKHVWDWHEDUl 2SS ,  1R ZRXOGFRQWLQXHWKHORQJVWDQGLQJSUDFWLFHRIWKHIHGHUDOFRXUWV  LQ UHQGHULQJ FRPLW\ WR WKH VWDWH FRXUWV LQ UHJXODWLQJ WKH $//$1 s 5,77(1+286( !  SUDFWLFHRIODZ6HHHJ/HLVY)O\QW86 3ODLQWLII$SSHOODQW   QRWLQJWKDWLWLVZHOOHVWDEOLVKHGWKDWWKH6WDWHVQRW  IHGHUDOFRXUWVmSUHVFULEHWKHTXDOLILFDWLRQVIRUDGPLVVLRQWR Y  SUDFWLFHDQGWKHVWDQGDUGVRISURIHVVLRQDOFRQGXFWlDVZHOODV  EH mUHVSRQVLEOH IRU WKH GLVFLSOLQH RI ODZ\HUVl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n'DYLG:0F.HDJXH'LVWULFWsXGJH SUDFWLFHSODFHVDQXQGXHEXUGHQRQIHGHUDOFRXUWVWRUHJXODWH DQGGLVFLSOLQHDWWRUQH\VZKRDUHQRORQJHUXQGHUWKHRYHUVLJKW $UJXHGsDQXDU\ RI WKHLU ORFDO VWDWH EDU DQG DGGLWLRQDOO\ HQFRXUDJHV SURVSHFWLYHDWWRUQH\VWRIRUXPVKRSDPRQJVWDWHEDUVIRUWKH 'HFLGHGDQG)LOHGsXQH HDVLHVWUHTXLUHPHQWV %HIRUH0(55,77%2**6DQG0225(&LUFXLW sXGJHV   ,QUH'HVLOHWV 1R 1R ,QUH'HVLOHWV  BBBBBBBBBBBBBBBBB BBBBBBBBBBBBBB &2816(/ ',66(17 BBBBBBBBBBBBBB $5*8('$OODQs5LWWHQKRXVH,URQ0RXQWDLQ0LFKLJDQ IRU $SSHOODQW  9LFWRULD 9 .UHPVNL 67$7( %$5 2) 0(55,77&LUFXLWsXGJHGLVVHQWLQJ,GLGQRWNQRZXQWLO 0,&+,*$1/DQVLQJ0LFKLJDQIRU$SSHOOHHDQG$PLFXV , UHDG sXGJH %RJJVj RSLQLRQ WKDW IRU ODZ\HUV LW LV QRZ D &XULDH21%5,()$OODQs5LWWHQKRXVH,URQ0RXQWDLQ UHJXODU HYHU\GD\ SUDFWLFH n SDUW RI WKH SURIHVVLRQjV 0LFKLJDQ IRU $SSHOODQW  'DQLHO 0 0RUOH\ %87&+ mTXRWLGLDQIRUPVRISUDFWLFHl WRXVHWKHFRXUWjVZRUGV nIRU 48,11526(085*<s$5',6%86+%85.+$57 ODZ\HUVWRSUDFWLFHGDLO\LQWKHIHGHUDOFRXUWVRI6WDWH$VD\ 3$5.6(VFDQDED0LFKLJDQIRU$SSHOOHH 0LFKLJDQRU7HQQHVVHHZKLOHOLYLQJDQGEHLQJOLFHQVHGWR SUDFWLFH RQO\ LQ 6WDWH % VD\ 1HZ E\UHYHUVLQJWKHORZHUIHGHUDOFRXUWjVUHPRYDORI%XUUIURP WKHEDU@XQOHVVLWZHUHLQ D FDVHZKHUHWKHFRQGXFWRIWKH %HFDXVH5LWWHQKRXVHKDGQRWEHHQDXWKRUL]HGE\WKH6WDWH &LUFXLW RU 'LVWULFW &RXUW ZDV LUUHJXODU RU ZDV IODJUDQWO\ %DURI0LFKLJDQWRSUDFWLFHODZLQWKH6WDWHRI0LFKLJDQWKH LPSURSHUl7KLVLVEHFDXVHmQRRWKHUWULEXQDOFDQGHFLGHLQ EDQNUXSWF\FRXUWKHOGWKDW5LWWHQKRXVHZDVQRWDQmDWWRUQH\l D FDVH RI UHPRYDO IURP WKH EDU ZLWK WKH VDPH PHDQV RI ZLWKLQ WKH PHDQLQJ RI WKH %DQNUXSWF\ &RGH  86& LQIRUPDWLRQDVWKH&RXUWLWVHOIlDQGEHFDXVHmWKHSRZHULV †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nDQDSSOLFDQWPXVWEHSURSHUO\OLFHQVHGE\DVWDWH HQDFWHG D VSHFLILF VWDWXWH WKDW JDYH WKH SRZHU WR SUDFWLFH ODZ WR SDWHQW WREHDGPLWWHG WKH\QHHGQRWGRVR DWWRUQH\V ,Q ERWK FDVHV &RQJUHVV KDV FRQILGHG WKH DELOLW\ WR FRQWURO D IHGHUDO EDU WR D IHGHUDO HQWLW\ $OWKRXJK LW VHHPV FOHDU ZH QHHG QRW JR VR IDU DV WR KROG WKDW WKH VWDWXWHV JUDQWLQJ IHGHUDO FRXUWV WKH DELOLW\ WR UHJXODWH &RQWUDU\WR3HWHUVRQjVUHDGLQJRI/HLVIHGHUDOFRXUWVKDYH WKHLU EDUV ZRXOG DOORZ IHGHUDO FRXUWV WR DGPLW SUDFWLWLRQHUV XQOLFHQVHG E\ WKH ULJKW WR FRQWURO WKH PHPEHUVKLS RI WKH IHGHUDO EDU DQ\ VWDWH $ VWDWH 7H[DV KDV OLFHQVHG 5LWWHQKRXVH WR SUDFWLFH ODZ m&RQJUHVVKDVSURYLGHGLQ86&†WKDWWKHGLVWULFW