Phelps v. Coy ( 2002 )


Menu:
  • 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 */(11 : 3+(/36 s5 ; 3ODLQWLII$SSHOOHH    1R Y  !  52%(57 0 &2 Z@KLOH KROGLQJ >3KHOSVjV@ VKLUW FROODU &R\ SURFHHGHG WR VODPKLVKHDGLQWRWKHIORRUDWOHDVWWKUHHWLPHVl7KHGLVWULFW FRXUWFRQFOXGHGWKDWDMXU\FRXOGILQGWKDWWKHEHDWLQJZDVQRW QHFHVVDU\ WR JDLQ FRQWURO RI 3KHOSV  m&R\ ZDV RQ WRS RI >3KHOSV@ZKRZDVKDQGFXIIHGZKHQWKHLQFLGHQWRFFXUUHG 7KHUH LV QR HYLGHQFH WKDW ZKLOH LQ WKDW SRVLWLRQ >3KHOSV@ SUHVHQWHGDWKUHDWWR&R\RUWRDQ\RWKHURIILFHUl7KHFRXUW DOVRKHOGWKDW3KHOSVjVULJKWWREHIUHHIURPXVHRIH[FHVVLYH IRUFH ZDV FOHDUO\ HVWDEOLVKHG DW WKH WLPH RI WKH HYHQWV LQ TXHVWLRQ  7KH GLVWULFW FRXUW GHQLHG &R\jV PRWLRQ IRU VXPPDU\MXGJPHQW &R\ ILOHG WKLV LQWHUORFXWRU\ DSSHDO  3KHOSV PRYHG WR GLVPLVVWKHDSSHDOIRUODFNRIMXULVGLFWLRQDQGDOVRDVNHGWKLV FRXUWIRUVDQFWLRQV:HWRRN3KHOSVjVPRWLRQZLWKWKHFDVH  3KHOSVY&R\HWDO 1R 1R 3KHOSVY&R\HWDO  )DELDQLFKDSROLFHRIILFHUIRUXVHRIH[FHVVLYHIRUFHZKLOH , VKHZDVEHLQJERRNHGIRUDPLVGHPHDQRU7KHGLVWULFWFRXUW VXEPLWWHGWKHFDVHWRWKHMXU\XQGHUWKH)RXUWK$PHQGPHQW 7REHJLQZLWKZHPXVWDGGUHVV3KHOSVjVPRWLRQWRGLVPLVV VWDQGDUGDQGWKHRIILFHUGLGQRWREMHFWWRWKHLQVWUXFWLRQ+H WKLVDSSHDOIRUODFNRIMXULVGLFWLRQ7KHUHOHYDQWVWDWXWH ODWHU FRQWHQGHG WKDW WKH MXU\ VKRXOG KDYH EHHQ LQVWUXFWHG 86&†  JUDQWVDSSHOODWHMXULVGLFWLRQRYHUILQDO XQGHUWKH)RXUWHHQWK$PHQGPHQWUDWKHUWKDQWKH)RXUWK:H MXGJPHQWVRQO\DQGGHQLDORIVXPPDU\MXGJPHQWLVXVXDOO\ UHMHFWHGWKHRIILFHUjVDUJXPHQWXQGHUWKHSODLQHUURUVWDQGDUG FRQVLGHUHG DQ LQWHUORFXWRU\ RUGHU QRW D ILQDO MXGJPHQW RIUHYLHZVWDWLQJ sRKQVRQYs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mQHDWDEVWUDFW>LVVXH@RIODZlUDWKHUWKDQ SURFHVVRIEHLQJERRNHGIRUDPLVGHPHDQRUDWWKHWLPHRIWKH WKHTXHVWLRQRIZKHWKHUWKHUHFRUGGHPRQVWUDWHVDJHQXLQH DOOHJHGXVHRIH[FHVVLYHIRUFH+ROPHVjVFDVHGRHVQRWPHDQ LVVXHRIIDFWIRUWULDO%HUU\PDQY5LHJHU)G WKDWWKHODZFRQFHUQLQJ3KHOSVjVULJKWVZDVXQFOHDULQWKLV WK&LU  TXRWLQJsRQHV86DW m,I FLUFXLW+ROPHVUHFRXQWVWKHIROORZLQJIDFWVm$IWHU+ROPHV WKHGHIHQGDQWGLVSXWHVWKHSODLQWLIIjVYHUVLRQRIWKHVWRU\ ZDV SODFHG XQGHU DUUHVW VKH ZDV WXUQHG RYHU WR 6HUJHDQW WKH GHIHQGDQW PXVW QRQHWKHOHVV EH ZLOOLQJ WR FRQFHGH WKH *HRUJH)DELDQLFKIRUERRNLQJl,GDW7KLVUHFLWDWLRQ PRVWIDYRUDEOHYLHZRIWKHIDFWVWRWKHSODLQWLIIIRUSXUSRVHV LPSOLHV WKDW )DELDQLFK ZDV QRW WKH DUUHVWLQJ RIILFHU DQG RI WKH DSSHDOl LG RWKHUZLVH ZH FDQQRW HQWHUWDLQ WKH WKHUHIRUH+ROPHVjVFDVHGLGQRWIDOOZLWKLQWKHUXOHZHKDYH GHIHQGDQWjVDUJXPHQWVQRPDWWHUKRZPHULWRULRXVWKH\PD\ UHOLHGRQFRQFHUQLQJDUUHVWHHVLQWKHFXVWRG\RIWKHDUUHVWLQJ EH RIILFHU:HFRQFOXGHWKDWLWZDVFOHDUO\HVWDEOLVKHGLQ WKDW3KHOSVHQMR\HGWKHSURWHFWLRQRIWKH)RXUWK$PHQGPHQW ,QWKLVFDVH&R\FOHDUO\KDVIDLOHGWROLPLWKLVDUJXPHQWWR GXULQJWKHLQFLGHQW TXHVWLRQVRIODZWDNLQJWKHIDFWVLQWKHOLJKWPRVWIDYRUDEOHWR 3KHOSV&R\DUJXHVIRULQVWDQFHWKDWKHmGLGQRWDWWHPSWWR 6LPLODUO\WKHXQUHDVRQDEOHQHVVRIWKHDOOHJHGIDFWVXQGHU LQMXUH 3KHOSV DQG LQWHQGHG WR XVH QR PRUH IRUFH WKDQ ZDV WKH)RXUWK$PHQGPHQWZDVFOHDUO\HVWDEOLVKHGDWWKHWLPHRI QHFHVVDU\ WR UHVWUDLQ DQG FRQWURO KLPl  ,I WKHVH DVVHUWLRQV WKH HYHQWV LQ WKLV FDVH  6HH 0F'RZHOO  )G DW  ZHUHFUXFLDOWR&R\j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jV ULJKWV DW WKH WLPH RI WKH DOOHJHG XVH RI H[FHVVLYH GHIHUHQFHGXHDQRIILFHUjVRQWKHVSRWGHFLVLRQVVHH6DXFLHU IRUFH JRYHUQHG E\ WKH )RXUWK $PHQGPHQW WKH (LJKWK 6&WDWRQWKHIDFWVDVZHPXVWWDNHWKHPWKHUH $PHQGPHQWRUWKH)RXUWHHQWK$PHQGPHQW"$QGZKDWHYHU ZDV VLPSO\ QR JRYHUQPHQWDO LQWHUHVW LQ FRQWLQXLQJ WR EHDW RXU DQVZHU WR WKDW TXHVWLRQ ZDV WKDW DQVZHU VR FOHDUO\ 3KHOSVDIWHUKHKDGEHHQQHXWUDOL]HGQRUFRXOGDUHDVRQDEOH HVWDEOLVKHG DW WKH WLPH RI WKH HYHQWV LQ TXHVWLRQ WKDW D RIILFHUKDYHWKRXJKWWKHUHZDV6HH$GDPVY0HWLYD)G UHDVRQDEOHRIILFHUZRXOGKDYHNQRZQZKDWVWDQGDUGJRYHUQHG   WK &LU   XVH RI IRUFH DIWHU VXVSHFW KLV FRQGXFW DQG WKDW WKH FRQGXFW ZDV ZURQJ XQGHU WKDW LQFDSDFLWDWHGE\PDFHZRXOGEHH[FHVVLYHDVDPDWWHURIODZ  VWDQGDUG":HFRQFOXGHWKDWWKHVHDUHWKHNLQGRITXHVWLRQV 0F'RZHOO  )G DW  EORZ ZLWK QLJKWVWLFN WR WKDWPD\EHUDLVHGE\LQWHUORFXWRU\DSSHDODQGWKDWZHKDYH KDQGFXIIHG XQUHVLVWLQJ VXVSHFW ZRXOG EH JUDWXLWRXV DQG MXULVGLFWLRQRYHUWKLVDSSHDO:HGHQ\3KHOSVjVPRWLRQWR WKHUHIRUHXQUHDVRQDEOH 'DUQHOOY&DYHU1R GLVPLVVDQGIRULPSRVLWLRQRIVDQFWLRQV :/DW  WK&LU  XQSXEOLVKHG  DIWHUVXVSHFW WKURZQWRJURXQGXQUHDVRQDEOHIRURIILFHUWROLIWVXVSHFWjV ,, KHDGDQGOHWLWGURSWRSDYHPHQW 7KHIDFWVUHFLWHGE\WKH GLVWULFWFRXUWZRXOGSHUPLWDILQGLQJWKDW&R\LQIOLFWHGRQ $FODLPRITXDOLILHGLPPXQLW\SUHVHQWVWZRFORVHO\OLQNHG 3KHOSV D EHDWLQJ WKDW ZDV QRW RQO\ XQQHFHVVDU\ EXW DOVR TXHVWLRQV  ZKHWKHU WKH GHIHQGDQW YLRODWHG WKH SODLQWLIIjV ZRXOGKDYHEHHQUHFRJQL]HGDVXQQHFHVVDU\E\DUHDVRQDEOH ULJKWVDQGZKHWKHUWKRVHULJKWVZHUHFOHDUO\HVWDEOLVKHGDWWKH RIILFHULQKLVSRVLWLRQ7KHVHIDFWVZRXOGHVWDEOLVKDYLRODWLRQ WLPHRIWKHDOOHJHGYLRODWLRQ6DXFLHUY.DW]86 RI3KHOSVjV)RXUWK$PHQGPHQWULJKWV  6 &W      m7KH UHOHYDQW GLVSRVLWLYH LQTXLU\LQGHWHUPLQLQJZKHWKHUDULJKWLVFOHDUO\HVWDEOLVKHG ,,, LVZKHWKHULWZRXOGEHFOHDUWRDUHDVRQDEOHRIILFHUWKDWKLV FRQGXFW ZDV XQODZIXO LQ WKH VLWXDWLRQ KH FRQIURQWHGl  ,G 2XULQTXLU\GRHVQRWHQGZLWKWKHGHWHUPLQDWLRQWKDWWKH %HFDXVHLQWKLVSURFHGXUDOSRVWXUHZHPXVWWDNHWKHIDFWVLQ IDFWVDOOHJHGZRXOGDPRXQWWRDYLRODWLRQRI3KHOSVjV)RXUWK WKHOLJKWPRVWIDYRUDEOHWRWKHSODLQWLIIWKHVHTXHVWLRQVDUH $PHQGPHQWULJKWV6DXFLHUY.DW]866&W VWULFWO\ OHJDO DQG ZH UHYLHZ WKHP GH QRYR  'LFNHUVRQ Y      &R\ PD\ \HW EH HQWLWOHG WR VXPPDU\ 0F&OHOODQ)G WK&LU  MXGJPHQWLI3KHOSVjVULJKWVZHUHQRWFOHDUO\HVWDEOLVKHGDWWKH WLPHRIWKHLQFLGHQWRUPRUHSUHFLVHO\LILQ$XJXVWLW 7R GHFLGH ZKHWKHU 3KHOSV SUHVHQWHG HYLGHQFH WKDW &R\ ZRXOGQRWKDYHEHHQmFOHDUWRDUHDVRQDEOHRIILFHU>LQ&R\jV YLRODWHG KLV FRQVWLWXWLRQDO ULJKW QRW WR EH VXEMHFWHG WR SRVLWLRQ@WKDWKLVFRQGXFW ZDVXQODZIXOLQWKHVLWXDWLRQKH XQQHFHVVDU\EHDWLQJZHPXVWILUVWDVFHUWDLQWKHVRXUFHRIWKDW FRQIURQWHGl,G ULJKW6HH*UDKDPY&RQQRU86   m,Q DGGUHVVLQJDQH[FHVVLYHIRUFHFODLPEURXJKWXQGHU† 7KHOHJDOSUHFHGHQWRQZKLFKZHUHO\LQFRQFOXGLQJWKDW DQDO\VLVEHJLQVE\LGHQWLI\LQJWKHVSHFLILFFRQVWLWXWLRQDOULJKW 3KHOSV HQMR\HG WKH SURWHFWLRQ RI WKH )RXUWK $PHQGPHQW DOOHJHGO\LQIULQJHGE\WKHFKDOOHQJHGDSSOLFDWLRQRIIRUFHl  ZKLOH LQ WKH FXVWRG\ RI WKH DUUHVWLQJ RIILFHUV DQWHGDWHV WKH %HWZHHQWKHP3KHOSVDQG&R\KDYHSURSRVHGWKUHHSRVVLEOH LQFLGHQWLQWKLVFDVHE\DOPRVWDGHFDGH6HH0F'RZHOOY VRXUFHVWKH)RXUWK$PHQGPHQWWKHGXHSURFHVVFODXVHRIWKH 5RJHUV  )G   WK &LU    7KHUH LV )RXUWHHQWK $PHQGPHQWDQGWKH(LJKWK$PHQGPHQW7KH KRZHYHURQHRIRXUFDVHVZKLFKZKLOHZHFRQFOXGHLWGLGQRW TXHVWLRQRIZKLFKDPHQGPHQWVXSSOLHV3KHOSVjVULJKWVLVQRW DIIHFW WKH DXWKRULW\ RI 0F'RZHOO QHYHUWKHOHVV PHULWV PHUHO\ DFDGHPLF IRU WKH VWDQGDUGV RI OLDELOLW\ YDU\ GLVFXVVLRQ,Q+ROPHVY&LW\RI0DVVLOORQ)G WK VLJQLILFDQWO\ DFFRUGLQJ WR ZKLFK DPHQGPHQW DSSOLHV  6HH &LU   +ROPHV EURXJKW D VHFWLRQ  VXLW DJDLQVW  3KHOSVY&R\HWDO 1R 1R 3KHOSVY&R\HWDO  WKDWWKH)RXUWK$PHQGPHQWLWVHOISURYLGHVZHDNWH[WXDO 'DUUDK Y &LW\ RI 2DN 3DUN  )G   WK &LU VXSSRUW IRU VXFK DQ H[WHQVLRQ  $V WKH )RXUWK   m$VXEVWDQWLDOO\KLJKHUKXUGOHPXVWEHVXUSDVVHGWR $PHQGPHQWSURWHFWVDJDLQVWXQUHDVRQDEOHmVHL]XUHVlLW PDNH D VKRZLQJ RI H[FHVVLYH IRUFH XQGHU WKH )RXUWHHQWK VHHPVSULPDULO\GLUHFWHGWRWKHLQLWLDODFWRIUHVWUDLQLQJ $PHQGPHQWWKDQXQGHUWKHµREMHFWLYHUHDVRQDEOHQHVVjWHVWRI DQLQGLYLGXDOjVOLEHUW\VXFKDVDQLQYHVWLJDWRU\VWRSRU >WKH)RXUWK$PHQGPHQW@l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jVFODLPDULVHVXQGHU ZRXOGQRWKDYHFRQVLGHUHGLWVUHDVRQLQJJHUPDQHWRWKHFDVH WKH )RXUWK $PHQGPHQW DQG LWV UHDVRQDEOHQHVV VWDQGDUG RI DQ DUUHVWHH LQ FXVWRG\ RI WKH RIILFHUV ZKR DUUHVWHG KLP *UDKDP  86 DW   7KDW VWDQGDUG UHTXLUHV WKDW WKH 9DOHQFLDLVDOWRJHWKHULUUHOHYDQWLQWKLVFDVHZKLFKGRHVQRW RIILFHUjVXVHRIIRUFHEHREMHFWLYHO\UHDVRQDEOHEDODQFLQJWKH LQYROYHDMDLOGLVWXUEDQFHDQGZKLFKGRHVLQYROYHDQDUUHVWLQ FRVWWRWKHLQGLYLGXDODJDLQVWWKHJRYHUQPHQWjVLQWHUHVWVLQ SURJUHVV0RUHRYHULQ*DQWWWKHFDVHRIDSUHWULDOGHWDLQHH HIIHFWLQJWKHVHL]XUH,GDW7KLVVWDQGDUGFRQWDLQVD ZKRKDGEHHQLQFDUFHUDWHGEHFDXVHKHFRXOGQRWSRVWERQG EXLOWLQ PHDVXUH RI GHIHUHQFH WR WKH RIILFHUjV RQWKHVSRW ZHUHMHFWHGDQLQYLWDWLRQWRDSSO\WKH(LJKWK$PHQGPHQWLQ MXGJPHQWDERXWWKHOHYHORIIRUFHQHFHVVDU\ LQ OLJKWRIWKH UHOLDQFHRQ9DOHQFLDEHFDXVHm*DQWWZDVE\QRVWUHWFKRIWKH FLUFXPVWDQFHVRIWKHSDUWLFXODUFDVH,G6DXFLHU6&W LPDJLQDWLRQ JXLOW\ RI FDXVLQJ D SULVRQ GLVWXUEDQFHl   DW7KHRIILFHUj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jV ULJKWV  ,Q DVVHVVLQJ WKH $PHQGPHQWVWDQGDUGIRFXVHVRQWKHRIILFLDOjVmREGXUDF\DQG UHDVRQDEOHQHVV RI &R\jV DFWLRQV ZH DQDO\]H WKH HYHQWV LQ ZDQWRQQHVVl:KLWOH\Y$OEHUV86   VHJPHQWV'LFNHUVRQY0F&OHOODQ)G DVNLQJmZKHWKHUIRUFHZDVDSSOLHGLQDJRRGIDLWKHIIRUWWR WK&LU 7KHUHOHYDQWVHJPHQWRIWKLVVWRU\LVZKDW PDLQWDLQRUUHVWRUHGLVFLSOLQHRUPDOLFLRXVO\DQGVDGLVWLFDOO\ KDSSHQHGDIWHU&R\WDFNOHGWKHKDQGFXIIHG3KHOSVDQGZDV IRUWKHYHU\SXUSRVHRIFDXVLQJKDUPl,GDW TXRWLQJ VLWWLQJRQWRSRIKLP7KHGLVWULFWFRXUWKHOGWKDWRQFH&R\ sRKQVRQY*OLFN)G G&LU  ZDV RQ WRS RI 3KHOSV WKHUH ZDV QR HYLGHQFH WKDW 3KHOSV SUHVHQWHGDWKUHDWWR&R\RUDQ\RWKHURIILFHU$OWKRXJKZH )LQDOO\LIDSODLQWLIILVQRWLQDVLWXDWLRQZKHUHKLVULJKWVDUH PXVWDOZD\VZHLJKWKHJRYHUQPHQWjVLQWHUHVWMXVWLI\LQJWKH JRYHUQHGE\WKHSDUWLFXODUSURYLVLRQVRIWKH)RXUWKRU(LJKWK XVHRIIRUFHDJDLQVWWKHLQGLYLGXDOjVLQWHUHVWLQDYRLGLQJWKDW $PHQGPHQWV WKH PRUH JHQHUDOO\ DSSOLFDEOH GXH SURFHVV IRUFH&R[)GDWDQGZHPXVWDGGLQWKHPHDVXUHRI FODXVH RI WKH )RXUWHHQWK $PHQGPHQW VWLOO SURYLGHV WKH  3KHOSVY&R\HWDO 1R 1R 3KHOSVY&R\HWDO  LQGLYLGXDOVRPHSURWHFWLRQDJDLQVWSK\VLFDODEXVHE\RIILFLDOV &R\ DUJXHV WKDW 3KHOSV VKRXOG EH FODVVLILHG DV D SUHWULDO 'DUUDK)GDW,QSDUWLFXODUm>L@WLVFOHDU GHWDLQHH DQG WKDW m>W@KH VWDQGDUG XQGHU ZKLFK D SUHWULDO WKDWWKH'XH3URFHVV&ODXVHSURWHFWVDSUHWULDOGHWDLQHHIURP GHWDLQHHjV FODLP RI H[FHVVLYH IRUFH LV HYDOXDWHG OLHV LQ WKH WKH XVH RI H[FHVVLYH IRUFH WKDW DPRXQWV WR SXQLVKPHQWl PXUN\ DUHD EHWZHHQ WKH )RXUWK DQG (LJKWK $PHQGPHQWVl *UDKDP86DWQ TXRWLQJ*DQWWY$NURQ&RUU)DFLOLW\1R:/  WK &LU sDQ    XQSXEOLVKHG   :KDWHYHU 7KH GLVWULFW FRXUW FRUUHFWO\ GHWHUPLQHG WKDW WKH DOOHJHG DUJXPHQWVFDQEHPDGHDERXWSUHWULDOGHWDLQHHVjULJKWVDUH EHDWLQJ RFFXUUHG GXULQJ WKH FRXUVH RI WKH DUUHVW RI D IUHH EHVLGHWKHSRLQWLQWKLVFDVHLQZKLFKWKHSODLQWLIIZDVVWLOOLQ SHUVRQ DQG WKHUHIRUH WKH SDUWLHVj ULJKWV DQG OLDELOLWLHV DUH WKH FXVWRG\ RI WKH DUUHVWLQJ RIILFHUV DQG ZDV QHYHU JRYHUQHG E\ WKH )RXUWK $PHQGPHQWjV UHDVRQDEOHQHVV LQFDUFHUDWHG  7KH mPXUN\ DUHDl GRHV QRW EHJLQ XQWLO  WKH VWDQGDUG&R\FRQWHQGVWKDWWKH)RXUWK$PHQGPHQWGRHVQRW SURWHFWLRQRIWKH)RXUWK$PHQGPHQWHQGVDQGRXUSUHFHGHQW DSSO\ WR 3KHOSVjV FDVH EHFDXVH 3KHOSV KDG DOUHDG\ EHHQ HVWDEOLVKHV WKDW DQ DUUHVWHH LQ WKH FXVWRG\ RI WKH DUUHVWLQJ DUUHVWHGZKHQWKHLQFLGHQWWRRNSODFH2XUFDVHVUHIXWHWKH RIILFHUVLVVWLOOVKHOWHUHGE\WKH)RXUWK$PHQGPHQW LGHDWKDWWKHSURWHFWLRQRIWKH)RXUWK$PHQGPHQWGLVDSSHDUV VRVXGGHQO\$WWKHWLPHRIWKHLQFLGHQW3KHOSVZDVVWLOOLQ &R\DUJXHGEHORZWKDWWKH(LJKWK$PHQGPHQWJRYHUQHG WKHFXVWRG\RI&R\DQG6WXWHVWKHDUUHVWLQJRIILFHUV6WXWHV 3KHOSVj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m>7@KH WKH)LIWK&LUFXLWDSSOLHGWKH(LJKWK$PHQGPHQWVWDQGDUGWR VHL]XUH WKDW RFFXUV ZKHQ D SHUVRQ LV DUUHVWHG FRQWLQXHV WKH FDVH RI D SUHWULDO GHWDLQHH LQYROYHG LQ D SULVRQ WKURXJKRXWWKHWLPHWKHSHUVRQUHPDLQVLQWKHFXVWRG\RIWKH GLVWXUEDQFH  7KH )LIWK &LUFXLW KHOG WKDW HYHQ WKRXJK WKH DUUHVWLQJ RIILFHUVl  0F'RZHOO Y 5RJHUV  )G  ULJKWVRIDSUHWULDOGHWDLQHHDUHJRYHUQHGE\WKH)RXUWHHQWK  WK&LU ,Q&R[Y7UHDGZD\)G $PHQGPHQWjV GXH SURFHVV FODXVH LG DW  WKHUH LV QR WK&LU sXGJH5\DQZULWLQJIRUWKHFRXUWVWDWHGWKDW UHDVRQWRWUHDWSUHWULDOGHWDLQHHVGLIIHUHQWO\IURPFRQYLFWVLQ WKH FRQVWLWXWLRQDO DQDO\VLV GRHV QRW LQVWDQWO\ FKDQJH WKH WKHFRQWH[WRISULVRQRUMDLOGLVWXUEDQFHV,GDW,Q PRPHQWDVXVSHFWLVVXEGXHGE\WKHSROLFHDQGWKDWmFUHDWLQJ GHEDWLQJZKLFKVWDQGDUGWRDSSO\WKH)LIWK&LUFXLWH[SOLFLWO\ DGLIIHUHQW)RXUWK$PHQGPHQWVWDQGDUGDSSOLFDEOHWRWKHXVH GLVWLQJXLVKHG EHWZHHQ LQFDUFHUDWHG SUHWULDO GHWDLQHHV DQG RIIRUFHLQDSRVWDUUHVWVLWXDWLRQWKDQLVDSSOLFDEOHWRSUH DUUHVWHHVVWLOOLQWKHFXVWRG\RIWKHDUUHVWLQJRIILFHUV DUUHVWFRQGXFW>ZRXOGLQWURGXFH@DGLVWLQFWLRQLQPHDQLQJRI WKH )RXUWK $PHQGPHQW WKDW LV IRXQG QRZKHUH LQ LWV :HGRQRWEHOLHYHWKDWWKH)RXUWK$PHQGPHQWSURYLGHV ODQJXDJHl  :KLOH WKH FRQWLQXLQJ VHL]XUH UXOH LV QRW DQDSSURSULDWHFRQVWLWXWLRQDOEDVLVIRUSURWHFWLQJDJDLQVW XQLYHUVDOO\DFFHSWHGLQRWKHUFLUFXLWVVHH)RQWDQDY+DVNLQ GHOLEHUDWHRIILFLDOXVHVRIIRUFHRFFXUULQJDVLQWKLVFDVH )G Q WK&LU  GHWDLOLQJFLUFXLW DIWHU WKH LQFLGHQWV RI DUUHVW DUH FRPSOHWHG DIWHU WKH VSOLWRQWKLVLVVXH LWLVWKHODZLQWKLVFLUFXLWDQGKDVEHHQ SODLQWLII KDV EHHQ UHOHDVHG IURP WKH DUUHVWLQJ RIILFHUjV VLQFH0F'RZHOO FXVWRG\ DQG DIWHU WKH SODLQWLII KDV EHHQ LQ GHWHQWLRQ DZDLWLQJ WULDO IRU D VLJQLILFDQW SHULRG RI WLPH  2XU UHDVRQVIRUVRGHFLGLQJDUHWKUHHIROG)LUVWZHEHOLHYH

Document Info

Docket Number: 00-4257

Filed Date: 4/10/2002

Precedential Status: Precedential

Modified Date: 9/22/2015