- 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH +XWFKHUVRQHWDOY/DXGHUGDOH 1R (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU &RXQW\7HQQHWDO )LOH 1DPH DS 'HFLGHGDQG)LOHG$SULO 81,7('67$7(6&28572)$33($/6 %HIRUH0225(DQG&2/(&LUFXLWsXGJHV526(1 )257+(6,;7+&,5&8,7 'LVWULFWs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mµDUH QRW FRH[WHQVLYHjl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jV SURFHGXUDO KLVWRU\ LQ WKH VWDWH FRXUWV DQG GLVFXVVLQJ ZKHWKHU WKH 5RRNHU)HOGPDQ GRFWULQH KDG DQ\ DSSOLFDWLRQ WR VKRXOGQRWEHXQGHUVWRRGDVDSHUVHUXOH WKLV FDVH $V WKH IROORZLQJ DQDO\VLV LQGLFDWHV ZH ILQG WKH SUHVHQW DFWLRQ FRQWUROOHG E\ WKH GRFWULQH RI UHV MXGLFDWD EXW QRW WKH 5RRNHU)HOGPDQ *DUU\)GDW GRFWULQH 1R +XWFKHUVRQHWDOY/DXGHUGDOH +XWFKHUVRQHWDOY/DXGHUGDOH 1R &RXQW\7HQQHWDO &RXQW\7HQQHWDO /RRNLQJILUVWWR5RRNHU)HOGPDQZHKDYHDGRSWHGDWZR EDVLV IRU WKHLU GHQLDO RI 3ODLQWLIIVj UH]RQLQJ UHTXHVW WKDW SDUWLQTXLU\IRUGHWHUPLQLQJZKHWKHUWKHGRFWULQHDSSOLHVLQD ZRXOGLQHVVHQFHDPRXQWWRDUHYHUVDORIWKH7HQQHVVHHVWDWH JLYHQFDVH:HILUVWGHWHUPLQHZKHWKHUWKHIHGHUDOFODLPLV FRXUWVjGHFLVLRQV mLQH[WULFDEO\LQWHUWZLQHGl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oDQDFWLRQLQDSSURSULDWHIRUD5RRNHU)HOGPDQ WKDQDSURKLELWHGDSSHDORIWKHVWDWHFRXUWMXGJPHQW EDUEXWEDUUHGQRQHWKHOHVVXQGHUWKHGRFWULQHRIUHVMXGLFDWD *DUU\)GDW &DW]Y&KDONHU)GWK&LUTXRWLQJ .HHQH&RUSY&DVV)GWK&LU 7KH SDUWLHV KDYH QRW UDLVHG WKH LVVXH RI UHV MXGLFDWD :H QH[W FRQVLGHU ZKHWKHU WKH IHGHUDO FODLP LV D mJHQHUDO H[SOLFLWO\1HYHUWKHOHVVZKHUHDSXUHO\OHJDOLVVXHSURYLGHV FKDOOHQJHWRWKHFRQVWLWXWLRQDOLW\RIWKHVWDWHODZDSSOLHGLQ DOWHUQDWLYH JURXQGV WR XSKROG WKH MXGJPHQW RI WKH GLVWULFW WKH VWDWH DFWLRQl WR ZKLFK WKH 5RRNHU)HOGPDQ GRFWULQH FRXUWZHPD\UHDFKWKHLVVXHSURYLGHGWKHUHFRUGSHUPLWVLWV ZRXOGQRWDSSO\RUmDVSHFLILFJULHYDQFHWKDWWKHODZZDV UHVROXWLRQDVDPDWWHURIODZ6HHHJ+ROORZD\Y%UXVK LQYDOLGO\HYHQXQFRQVWLWXWLRQDOO\DSSOLHGLQWKHSODLQWLIIjV )GWK&LU)DXJKHQGHUY&LW\RI1 SDUWLFXODU FDVHl WKDW ZRXOG UDLVH D 5RRNHU)HOGPDQ EDU 2OPVWHDG )G WK &LU VHH DOVR &DW])GDW %HFKWROGY&LW\RI5RVHPRXQW)GWK&LU DSSO\LQJ WKLV UHDVRQLQJ DV D EDVLV IRU VXD VSRQWH 3ODLQWLIIV FRQFHGH WKDW WKHLU IHGHUDO FRPSODLQW DVVHUWV FRQVLGHUDWLRQ RI D FROODWHUDO HVWRSSHO GHIHQVH 5XVVHOO Y mYLRODWLRQV RI WKHLU VXEVWDQWLYH GXH SURFHVV DQG HTXDO 6XQ$PHULFD6HF,QF)GWK&LU SURWHFWLRQULJKWVEDVHGXSRQWKHVDPHHVVHQWLDOIDFWVDVWKRVH VDPHDVWRUHVMXGLFDWDGHIHQVH)XUWKHUPRUHZHKDYHQRW XQGHUO\LQJWKH6WDWH&DVHl7KH\DUJXHWKDWWKHLUFODLPVDUH IDLOHG WR H[HUFLVH RXU GLVFUHWLRQ WR UHDFK DQ LVVXH WKDW WKH QRWLQH[WULFDEO\LQWHUWZLQHGKRZHYHUEHFDXVHWKH\DUHQRW SDUWLHVKDYHQRWEULHIHGZKHUHLWLQYROYHVDmSXUHTXHVWLRQRI FKDOOHQJLQJWKHVWDWHFRXUWjVGHFLVLRQ,QGHHG3ODLQWLIIVDJUHH ODZWKDWFULHVRXWIRUUHVROXWLRQl5\EDUF]\NY75:,QF ZLWKWKHVWDWHFRXUWjVILQGLQJWKDWWKHLUFRQVWLWXWLRQDOULJKWV )GWK&LUVHHDOVR'RUULVY$EVKHU ZHUHYLRODWHG7KH\VHHNWKURXJKWKLVIHGHUDODFWLRQPRQH\ )GWK&LU6HHJHQHUDOO\8QLWHG GDPDJHVIRUWKHFRQVWLWXWLRQDOYLRODWLRQVWKDWWKHVWDWHFRXUW 6WDWHV1DWj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m,Q SOHDGLQJ WR D SUHFHGLQJ QRWLQJWKDWVHYHUDOFRXUWVVXDVSRQWHKDYHUDLVHGWKHLVVXHRI SOHDGLQJDSDUW\VKDOOVHWIRUWKDIILUPDWLYHO\UHVMXGLFDWD UHV MXGLFDWD EHFDXVH mLQ DSSURSULDWH FDVHV >WKLV SUDFWLFH@ DQG DQ\ RWKHU PDWWHU FRQVWLWXWLQJ DQ DYRLGDQFH RU µLQVXUHVWKHILQDOLW\RIGHFLVLRQVFRQVHUYHVMXGLFLDOUHVRXUFHV DIILUPDWLYH GHIHQVHl 7(11 5 &,9 3 %ORQGHU DQGSURWHFWVOLWLJDQWVIURPPXOWLSOHODZVXLWVj>DQG@>I@RU 7RQJXH/DEV,QFY8QLYRI,OO)RXQG86 WKHVHUHDVRQVFRXUWVUDLVHUHVMXGLFDWDVXDVSRQWHGHVSLWHWKH m5HVMXGLFDWDDQGFROODWHUDOHVWRSSHODUHDIILUPDWLYH WHFKQLFDOSOHDGLQJUHTXLUHPHQWVRI5XOHFl GHIHQVHV WKDW PXVW EH SOHDGHGl 0XQ 5HVDOH 6HUY &XVWRPHUVY)HG(QHUJ\5HJXODWRU\&RPPj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j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mVSHFLDOFLUFXPVWDQFHVl$UL]RQDY&DOLIRUQLD 86m7KLVUHVXOWLVIXOO\FRQVLVWHQWZLWKWKH 'HIHQGDQWV DOVR ILOHG D PRWLRQ DVNLQJ WKH GLVWULFW FRXUW WR SROLFLHVXQGHUO\LQJUHVMXGLFDWDLWLVQRWEDVHGVROHO\RQWKH GLVPLVVWKHVXLWRUDEVWDLQSHQGLQJWKHRXWFRPHRIWKHVWDWH GHIHQGDQWjV LQWHUHVW LQ DYRLGLQJ WKH EXUGHQV RI WZLFH FRXUW SURFHHGLQJV )XUWKHUPRUH WKH 6XSUHPH &RXUW KDV GHIHQGLQJ D VXLW EXW LV DOVR EDVHG RQ WKH DYRLGDQFH RI QRWHGWKDWWKHSXUSRVHRIUHTXLULQJWKDWFHUWDLQGHIHQVHVVXFK XQQHFHVVDU\MXGLFLDOZDVWHl,G7KLV&RXUWKDVUHFRJQL]HG DVUHVMXGLFDWDEHDIILUPDWLYHO\SOHGLVWRmJLYHWKHRSSRVLQJ WKDWLWPLJKWEHDSSURSULDWHWRUDLVHWKHUHVMXGLFDWDGHIHQVH SDUW\QRWLFHRIWKHSOHDRIHVWRSSHODQGDFKDQFHWRDUJXHLI VXD VSRQWH LQ FHUWDLQ FLUFXPVWDQFHV 6HH HJ +ROORZD\ KH FDQ ZK\ WKH LPSRVLWLRQ RI DQ HVWRSSHO ZRXOG EH &RQVWU&RY8QLWHG6WDWHV'HSjWRI/DERU)G LQDSSURSULDWHl %ORQGHU7RQJXH /DEV 86 DW WK&LUDIILUPLQJDGLVWULFWFRXUWjVVXDVSRQWH 3ODLQWLIIV ZHUH PDGH DZDUH RI WKH LVVXH RI GXSOLFDWLYH DVVHUWLRQRIUHVMXGLFDWDZKHUHWKHGLVWULFWFRXUWKDGGHFLGHG SURFHHGLQJV LQ WKH GLVWULFW FRXUW DQG ERWK SDUWLHV KDG WKH WKHRULJLQDOFDVHDQGDGGLQJWKDWmDGLVWULFWFRXUWPD\LQYRNH RSSRUWXQLW\WRLGHQWLI\GLVVLPLODULWLHVEHWZHHQWKHVWDWHDQG WKHGRFWULQHRIUHVMXGLFDWDLQWKHLQWHUHVWVRILQWHUDOLDWKH IHGHUDO VXLWV EHIRUH WKH GLVWULFW FRXUW LQ UHVSRQVH WR SURPRWLRQRIMXGLFLDOHFRQRP\lVHHDOVR&XUU\Y&LW\RI 'HIHQGDQWVj PRWLRQ IRU DEVWHQWLRQ DQG WKURXJK WKH 6\UDFXVH)GG&LU$JJY)ODQDJDQ VXSSOHPHQWDOEULHILQJVXEPLWWHGWRWKLV&RXUW )GWK&LU&RQWLHsGLVVHQWLQJ 1R +XWFKHUVRQHWDOY/DXGHUGDOH +XWFKHUVRQHWDOY/DXGHUGDOH 1R &RXQW\7HQQHWDO &RXQW\7HQQHWDO 5HV MXGLFDWD UHTXLUHV XV WR JLYH WKH VDPH HIIHFW WR WKH FRXUWDQGSDUWLQIHGHUDOFRXUW7KH\PD\QRWKDYHORVWRQDOO 7HQQHVVHHVWDWHFRXUWMXGJPHQWDVZRXOGDQRWKHU7HQQHVVHH WKHLUFODLPVLQWKHVWDWHFRXUWEXWHVVHQWLDOO\WKH\DUHmWU\LQJ VWDWHFRXUW86&0DUUHVH86DW DJDLQlRQWKHLUFRQVWLWXWLRQDOFODLPVIRUZKLFKWKH\DUHQRW 7KHVWDWHRI7HQQHVVHHEDUVXQGHUUHVMXGLFDWDmDOOFODLPVWKDW VDWLVILHG ZLWK WKH UHPHG\ 6HH +RPROD )G DW ZHUHDFWXDOO\OLWLJDWHGRUFRXOGKDYHEHHQOLWLJDWHGLQWKHILUVW 3ODLQWLIIV DOVR KDYH VRXJKW HTXLWDEOH UHOLHI LQ VWDWH FRXUW VXLWEHWZHHQWKHVDPHSDUWLHVl$P1DWjO%DQN 7UXVW&R UHVHUYLQJWKHLVVXHRIGDPDJHVIRUODWHUOLWLJDWLRQDJDLQVWWKH RI&KDWWDQRRJDY&ODUN6:G7HQQ VDPHGHIHQGDQW7KH\SUHIHUWRmLJQRUHUDWKHUWKDQXSVHWWKH )RXUHOHPHQWVPXVWEHHVWDEOLVKHGEHIRUHUHVMXGLFDWDFDQEH MXGJPHQWRIWKHVWDWHWULEXQDOl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mµRSHUDWHVDVDQHVWRSSHODIWHUMXGJPHQWjl IRXQGWRH[LVW7KHUHOHYDQWLQTXLU\IRFXVHVRQZKHWKHUWKH LWmLVQRWIDWDOWRWKHILUVWDFWLRQlEXWSUHFOXGHVWKHVHFRQG IHGHUDODFWLRQZRXOGUHTXLUHXVWRUHYLVLWLVVXHVDQGFODLPV XQGHU UHV MXGLFDWD &ODUN 6:G DW VHH DOVR WKDWZHUHOLWLJDWHGRUFRXOGKDYHEHHQOLWLJDWHGLQWKHVWDWH 5(67$7(0(17 6(&21' 2) s8'*0(176 FRXUW7KHLVVXHRIPRQH\GDPDJHVZDVQRWOLWLJDWHGLQWKH SUHFOXGLQJFODLPVSOLWWLQJXQOHVVmWKHSDUWLHVKDYHDJUHHGLQ VWDWH FRXUW SURFHHGLQJV EXW LW FOHDUO\ FRXOG KDYH EHHQ WHUPVRULQHIIHFWWKDWWKHSODLQWLIIPD\VSOLWKLVFODLPRUWKH 3ODLQWLIIVFKRVHWRDEDQGRQWKLVFODLPDWWKHVWDWHFRXUWOHYHO GHIHQGDQW KDV DFTXLHVFHG WKHUHLQl 3ODLQWLIIV LQ WKLV FDVH KRSLQJWRUDLVHLWLQIHGHUDOFRXUW7HQQHVVHHODZSURKLELWV VRXJKWWRVSOLWWKHLUFDXVHRIDFWLRQo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mUHV MXGLFDWDl DV D mJHQHUDO WHUP UHIHUULQJ WR DOO RI WKH 7HQQHVVHHVWDWHFRXUWDVDUH+XWFKHUVRQDQG:7(&ODUN ZD\V LQ ZKLFK RQH MXGJPHQW ZLOO KDYH D ELQGLQJ HIIHFW RQ DQRWKHUl KDV EHHQ HQGRUVHG 6HH &+$5/(6 $/$1 :5,*+7 7+( /$: 2) )('(5$/ 6:GDW+RPROD)GDW+RZHYHUUHV & 28576 $ DW WK HG %/$&.j6 /$: ',&7,21$5 @RQWKHIDFWVRIHDFKFDVHl&LKODU ,WLVDSSDUHQWWKDW3ODLQWLIIVDUHVHHNLQJ WR UHYLVLWLQWKLV 6:GDW DFWLRQWKHVWDWHFRXUWjVGHFLVLRQQRWWRRUGHULQMXQFWLYHUHOLHI ZKLFK ZRXOG KDYH SHUPLWWHG 3ODLQWLIIV WR FRQVWUXFW WKHLU :H FRQFOXGH WKDW +XWFKHUVRQ 0HWDOVjV LQWHUHVWV DUH ODQGILOO 7KLV LV WKH SUHFLVH VLWXDWLRQ SURKLELWHG E\ WKH LGHQWLFDO WR WKRVH RI +XWFKHUVRQ DQG :7( DQG DV VXFK GRFWULQH RI UHV MXGLFDWD :H DFFRUGLQJO\ $)),50 WKH SULYLW\H[LVWVXQGHU7HQQHVVHHODZ GLVWULFWFRXUWjVGLVPLVVDORIWKLVFRPSODLQW +XWFKHUVRQ0HWDOVLVD7HQQHVVHHFRUSRUDWLRQRZQHGDQG RSHUDWHG E\ :LOH\ +XWFKHUVRQ DQG KLV ZLIH 7KH IHGHUDO FRPSODLQWVWDWHVWKDW:7(DQRWKHUFRUSRUDWLRQRZQHGDQG RSHUDWHGE\:LOH\+XWFKHUVRQDQGKLVZLIHZDVHVWDEOLVKHG mWR RSHUDWH D ODQGILOO IRU WKH EHQHILW RIl +XWFKHUVRQ 0HWDOV ,Q WKHLU VXSSOHPHQWDO EULHIV 3ODLQWLIIV QRWH WKDW +XWFKHUVRQ 0HWDOV LV mWKH HQWLW\ IRU ZKRVH EHQHILW WKH SURSRVHG ODQGILOO LV WR EH RSHUDWHGl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jQ Y .QR[ &RXQW\ %G RI (GXF )G WK &LU FLWLQJ 5LFKDUGV Y sHIIHUVRQ &RXQW\ $OD 86 Q m7KH GRFWULQH RI UHV MXGLFDWD UHVWV DW ERWWRP XSRQ WKH JURXQG WKDW WKH SDUW\ WR EH DIIHFWHG RU VRPH RWKHU ZLWK ZKRP KH LV LQ SULYLW\ KDV OLWLJDWHG RU KDG DQ RSSRUWXQLW\ WR OLWLJDWH WKH VDPH PDWWHU LQ D IRUPHU DFWLRQ LQ D FRXUW RI FRPSHWHQW MXULVGLFWLRQl sRQHV Y &UDLJ )G WK &LU
Document Info
Docket Number: 00-5686
Filed Date: 4/9/2003
Precedential Status: Precedential
Modified Date: 9/22/2015