- 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH .LQJV/RFDO6FKRROY=HOD]Q\HWDO 1R (/(&7521,& &,7$7,21 )(' $SS 3 WK &LU )LOH 1DPH DS BBBBBBBBBBBBBBBBB &2816(/ 81,7('67$7(6&28572)$33($/6 $5*8(' 7KRPDV : sDFREV /87= &251(77 )257+(6,;7+&,5&8,7 $/%5,1&.&LQFLQQDWL2KLRIRU$SSHOODQWVs0LFKDHO BBBBBBBBBBBBBBBBB )LVFKHU(11,652%(576 ),6&+(5&LQFLQQDWL2KLR IRU$SSHOOHH21%5,()7KRPDV:sDFREV/LVD%DUEDUD $YLURY/87=&251(77 $/%5,1&.&LQFLQQDWL2KLR .,1*6 /2&$/ 6&+22/ ; *UHJRU\$GDP1DSROLWDQR/87=%267(5 &251(7(7 ',675,&7 %2$5' 2) &LQFLQQDWL2KLRIRU$SSHOODQWVs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l86DW RIWKHVWDWHDGPLQLVWUDWLYHSURFHHGLQJVVKRXOGEHJLYHQGXH 7KH&RXUWZHQWRQWRVD\m>7@KHLQWHQWRIWKH$FWZDVPRUH ZHLJKW7KRPDV)GDW7KLVVWDQGDUGRIUHYLHZLV WRRSHQWKHGRRURISXEOLFHGXFDWLRQWRKDQGLFDSSHGFKLOGUHQ NQRZQ DV mPRGLILHG GH QRYRl UHYLHZ &OHYHODQG RQDSSURSULDWHWHUPVWKDQWRJXDUDQWHHDQ\SDUWLFXODUOHYHORI +HLJKWV8QLYHUVLW\+HLJKWV&LW\6FK'LVWY%RVV)G HGXFDWLRQRQFHLQVLGHl,G)RURXUSXUSRVHVLQWKLVFDVHWKH WK&LU$VWKLVFRXUWFRQFOXGHGLQ7KRPDV $FWjVLQWHQWPDQGDWHVDQVZHULQJWZRTXHVWLRQVm)LUVWKDVWKH m$OWKRXJKWKHSURFHGXUDOSRVWXUHRIWKLVFDVHUHTXLUHVXVWR 6WDWHFRPSOLHGZLWKWKHSURFHGXUHVVHWIRUWKLQWKH$FW"$QG UHYLHZ WKH GLVWULFW FRXUW V GHFLVLRQ GH QRYR ZH GR VR VHFRQGLVWKHLQGLYLGXDOL]HGHGXFDWLRQDOSURJUDPGHYHORSHG FRJQL]DQWRIWKHIDFWWKDWZHPD\QRWVXEVWLWXWHRXUQRWLRQRI WKURXJKWKH$FW VSURFHGXUHVUHDVRQDEO\FDOFXODWHGWRHQDEOH VRXQGHGXFDWLRQDOSROLF\IRUWKDWRIWKHVFKRRODXWKRULWLHVDQG WKHFKLOGWRUHFHLYHHGXFDWLRQDOEHQHILWV"l,GDWVHH DUHUHTXLUHGLQVWHDGWRJLYHGXHZHLJKWlWRWKHGHFLVLRQRI DOVR0F/DXJKOLQ)GDW$VWKH6XSUHPH&RXUW WKHVWDWHOHYHOUHYLHZRIILFHU7KRPDV)GDW$V FRQFOXGHGLQ5RZOH\m,IWKHVHUHTXLUHPHQWVDUHPHWWKH6WDWH ZHVDLGLQDUHFHQWFDVH0F/DXJKOLQY+ROW3XEOLF6FKRROV KDVFRPSOLHGZLWKWKHREOLJDWLRQVLPSRVHGE\&RQJUHVVDQG %RDUGRI(GXFDWLRQ)GWK&LU WKH FRXUWV FDQ UHTXLUH QR PRUHl 86 DW 6SHFLILFDOO\WKLVPHDQVm>W@KHVWDWXWHPD\QRWUHTXLUHSXEOLF 7KH DPRXQW RI ZHLJKW GXH WR DGPLQLVWUDWLYH ILQGLQJV VFKRROV WR PD[LPL]H WKH SRWHQWLDO RI GLVDEOHG VWXGHQWV GHSHQGVRQZKHWKHUWKHILQGLQJLVEDVHGRQHGXFDWLRQDO FRPPHQVXUDWH ZLWK WKH RSSRUWXQLWLHV SURYLGHG WR RWKHU H[SHUWLVH /HVV ZHLJKW LV GXH WR DQ DJHQF\ V FKLOGUHQl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m>$@GLVWULFWFRXUW SHUIRUPDQFHLLDVWDWHPHQWRIPHDVXUDEOHDQQXDO LVUHTXLUHGWRPDNHILQGLQJVRIIDFWEDVHGRQDSUHSRQGHUDQFH JRDOV LQFOXGLQJ EHQFKPDUNV RU VKRUWWHUP REMHFWLYHV RIWKHHYLGHQFHFRQWDLQHGLQWKHFRPSOHWHUHFRUGZKLOHJLYLQJ LLLDVWDWHPHQWRIWKHVSHFLDOHGXFDWLRQDQGUHODWHG VRPH GHIHUHQFH WR WKH IDFW ILQGLQJV RI WKH DGPLQLVWUDWLYH VHUYLFHV DQG VXSSOHPHQWDU\ DLGV DQG VHUYLFHV WR EH SURFHHGLQJVl.QDEOHY%H[OH\&LW\6FK'LVW)G SURYLGHG WR WKH FKLOG RU RQ EHKDOI RI WKH FKLOG DQG D WK&LU7KLVFRXUWZHQWRQWRVD\ZHmDSSO>\@ VWDWHPHQWRIWKHSURJUDPPRGLILFDWLRQVRUVXSSRUWVIRU DFOHDUO\HUURQHRXVVWDQGDUGRIUHYLHZWRWKHGLVWULFWFRXUW V VFKRROSHUVRQQHOWKDWZLOOEHSURYLGHGIRUWKHFKLOG ILQGLQJV RI IDFW DQG D GH QRYR VWDQGDUG RI UHYLHZ WR LWV LY DQ H[SODQDWLRQ RI WKH H[WHQW LI DQ\ WR ZKLFK WKH FRQFOXVLRQVRIODZl,G FKLOGZLOOQRWSDUWLFLSDWHZLWKQRQGLVDEOHGFKLOGUHQLQWKH UHJXODUFODVVDQGLQWKHDFWLYLWLHVGHVFULEHGLQFODXVHLLL 7KH 6XSUHPH &RXUW LQ 5RZOH\ VDLG WKDW LQ SDVVLQJ WKH YLLL D VWDWHPHQW RI, KRZ WKH FKLOG V SURJUHVV ,QGLYLGXDOVZLWK'LVDELOLWLHV(GXFDWLRQ$FWm&RQJUHVVVRXJKW 1R .LQJV/RFDO6FKRROY=HOD]Q\HWDO .LQJV/RFDO6FKRROY=HOD]Q\HWDO 1R WRZDUGWKHDQQXDOJRDOVGHVFULEHGLQFODXVHLLZLOOEH SDUHQWVLQRUGHUWRVDWLVI\WKHUHTXLUHPHQWWKDWWKH>FRPPLWWHH PHDVXUHG DQG ,, KRZ WKH FKLOG V SDUHQWV ZLOO EH GHYHORSLQJ WKH SURJUDP@ LQFOXGH SHUVRQV NQRZOHGJHDEOH UHJXODUO\ LQIRUPHG E\ VXFK PHDQV DV SHULRGLF UHSRUW DERXW µSODFHPHQW RSWLRQVjl 'RQJ Y %RDUG RI (GXF RI FDUGVDWOHDVWDVRIWHQDVSDUHQWVDUHLQIRUPHGRIWKHLU 5RFKHVWHU &RPPXQLW\ 6FK )G WK &LU QRQGLVDEOHGFKLOGUHQ VSURJUHVV 7KHVHmDUHUHTXLUHPHQWVE\ZKLFKWKHDGHTXDF\RIDQ,(3LV ,Q'RQJWKLVFRXUWDOVRIRXQGWKDWWKHFKLOGjVHGXFDWLRQ WR EH MXGJHG DOWKRXJK PLQRU WHFKQLFDO YLRODWLRQV PD\ EH SURJUDPGLGSURYLGHDIUHHDSSURSULDWHSXEOLFHGXFDWLRQHYHQ H[FXVHGl &OHYHODQG +HLJKWV )G DW )XUWKHU ZKHUHWKHSURJUDPDOOHJHGO\mIDLOHGWRFRQVLGHU>WKHFKLOGjV@ m>W@KLV&RXUWKDVGHWHUPLQHGWKDWDSSHOODQWDQGKLVSDUHQWV µXQLTXHQHHGVjEXWUDWKHURQO\RIIHUHGDµVWDQGDUGjDXWLVWLF EHDU WKH EXUGHQ RI SURYLQJ E\ D SUHSRQGHUDQFH RI WKH LPSDLUHGSURJUDPEDVHGRQZKDWPLJKWEHEHVWIRUDµW\SLFDOj HYLGHQFHWKDWWKH,(3GHYLVHGE\WKH%RDUGLVLQDSSURSULDWHl DXWLVWLFFKLOGl,GDW,WPXVWEHQRWHGKRZHYHUWKDW 'RHY%RDUGRI(GXFRI7XOODKRPD&LW\6FK)G $ULHOjVmXQLTXHQHHGVlPD\EHPRUHFRPSOLFDWHGWKDQRWKHU WK&LU0F/DXJKOLQ)GDW FKLOGUHQjV$mVWDQGDUGlDXWLVWLFSURJUDPZRXOGRQO\EHJLQ WRFRYHU$ULHOjVGLVRUGHUVDQGWKHLUPDQLIHVWDWLRQVDQGWKH 7KH =HOD]Q\V FODLP WKDW WKH LQGLYLGXDOL]HG HGXFDWLRQ RFFXUUHQFH RI DOO WKUHH GLVRUGHUV LQ RQH FKLOG DSSHDUV SURJUDPWKDW.LQJVGHYLVHGIRU$ULHOZDVGHILFLHQWLQPDQ\ XQFRPPRQHQRXJKWKDWWKHUHPD\EHQRmVWDQGDUGlSURJUDP UHVSHFWV7KH\VD\LWSURYLGHGQRDFDGHPLFJRDOVIRU$ULHO DWDOOIRUGHDOLQJZLWKDFKLOGOLNH$ULHO DQG IDLOHG WR SURYLGH EHQFKPDUNV IRU GHWHUPLQLQJ $ULHOjV VXFFHVV 7KH =HOD]Q\V DOVR FODLP WKDW WKH VWDII .LQJV .LQJVDUJXHVWKDW$ULHOjVHGXFDWLRQSURJUDPZDVSURYLGLQJ SURYLGHGIRUGHYHORSLQJWKHSURJUDPZDVLOOHTXLSSHGWRGHDO KLPDIUHHDSSURSULDWHSXEOLFHGXFDWLRQ7KHVFKRROGLVWULFW ZLWKWKHVLWXDWLRQ$ULHOjVWKUHHGLVRUGHUVSUHVHQWHG RIIHUV DV SURRI WKH IDFW WKDW $ULHO DFKLHYHG SDVVLQJ JUDGHV WKURXJKRXWQLQWKJUDGHLQKLVDFDGHPLFFODVVHV7KH6XSUHPH $VWRWKHILUVWWZRRIWKHVHFODLPVWKHGLVWULFWFRXUWIRXQG &RXUWKDVIRXQGWKDWDGYDQFHPHQWLVVWURQJHYLGHQFHWKDWD WKDWWKHWHDPWKDWIRUPXODWHG$ULHOjVLQGLYLGXDOL]HGHGXFDWLRQ FKLOG LV UHFHLYLQJ D PHDQLQJIXO HGXFDWLRQDO H[SHULHQFH SURJUDPIRUWKHQLQWKJUDGHZKLFKLQFOXGHG&LQG\=HOD]Q\ DOWKRXJKLWKDVUHIXVHGWRKROGmWKDWHYHU\KDQGLFDSSHGFKLOG FRQFOXGHGWKDWLWZDVLPSRUWDQWIRUWKHSURJUDPWRIRFXVRQ ZKR LV DGYDQFLQJ IURP JUDGH WR JUDGH LQ D UHJXODU SXEOLF VRFLDOL]DWLRQDQGRUJDQL]DWLRQDOJRDOVUDWKHUWKDQDFDGHPLF VFKRROV\VWHPLVDXWRPDWLFDOO\UHFHLYLQJDµIUHHDSSURSULDWH RQHV $V WR WKH ODWWHU RI WKHVH DVVHUWLRQV LQ 5HQQHU WKLV SXEOLFHGXFDWLRQjl5RZOH\86DWQ.LQJV FRXUW IRXQG WKDW WKH WHDP GHYHORSLQJ WKH SODLQWLII FKLOGjV KRZHYHUDVVHUWVWKDW$ULHOZDVDFKLHYLQJVXFFHVVLQVFKRRO HGXFDWLRQSURJUDPZDVZHOOSUHSDUHGWRGRVREHFDXVHWKDW DQGKHZDVKDYLQJQRPRUHGLVFLSOLQHSUREOHPVWKDQKHGLGLQ WHDP mFRQVWLWXWHG D JURXS ZKLFK FRXOG PDNH DSSURSULDWH HLJKWK JUDGH ,Q IDFW KH KDG RQH LQVFKRRO VXVSHQVLRQ LQ SODFHPHQWGHFLVLRQVLQFOXGLQJDQ,(3DQGLQFOXGHGµSHUVRQV QLQWKJUDGHDVFRPSDUHGWRWZRLQHLJKWK NQRZOHGJHDEOHDERXWWKHFKLOGWKHPHDQLQJRIWKHHYDOXDWLRQ GDWDDQGWKHSODFHPHQWRSWLRQVjl)GDWFLWLQJ ,Q FRQWUDVW $ULHOjV SDUHQWV GLG QRW IHHO WKH \HDU ZDV &)5 D ,Q WKDW FDVH ZH VDLG WKDW WKH VXFFHVVIXO DQG &LQG\ =HOD]Q\ QRWHG WKDW WKH IDPLO\ ZDV SURJUDPGLGQRWIDLOVLPSO\EHFDXVHWKHWHDPGLGQRWFRQVXOW KDYLQJ DQ LQFUHDVLQJO\ GLIILFXOW WLPH ZLWK $ULHO ZKHQ KH ZLWKWKHSDUHQWVjH[SHUW,G,QDVLPLODUFDVHWKLVFRXUWVDLG DUULYHG KRPH IURP VFKRRO :H KDYH VDLG KRZHYHU LQ m:HUHMHFWWKHFRQWHQWLRQWKDWWKH'LVWULFWPXVWLQFOXGHDQ 7HQQHVVHH 'HSDUWPHQW RI 0HQWDO +HDOWK DQG 0HQWDO H[SHUW LQ WKH SDUWLFXODU WHDFKLQJ PHWKRG SUHIHUUHG E\ WKH 1R .LQJV/RFDO6FKRROY=HOD]Q\HWDO .LQJV/RFDO6FKRROY=HOD]Q\HWDO 1R 5HWDUGDWLRQY3DXO%)GWK&LU FRQVXOWDQWV VXJJHVWHG P\ULDG ZD\V WR LPSURYH $ULHOjV FLWDWLRQVRPLWWHG SURJUDP 7RDVVHVVZKHWKHUDUHVLGHQWLDOSODFHPHQWLVDSSURSULDWH 7KH,QGLYLGXDOVZLWK'LVDELOLWLHV(GXFDWLRQ$FWUHTXLUHVDW D GHWHUPLQDWLRQ PXVW EH PDGH ZKHWKHU IXOO WLPH 86&G UHVLGHQWLDO SODFHPHQW LV QHFHVVDU\ IRU HGXFDWLRQDO SXUSRVHV DV RSSRVHG WR PHGLFDO VRFLDO RU HPRWLRQDO 5HYLHZ DQG UHYLVLRQ RI ,(3 $ ,Q JHQHUDO 7KH SUREOHPV WKDW DUH VHSDUDEOH IURP WKH OHDUQLQJ ORFDOHGXFDWLRQDODJHQF\VKDOOHQVXUHWKDWWKH,(3 SURFHVV8QGHUWKH$FWUHVLGHQWLDOSODFHPHQWLVDW 7HDPoLUHYLHZVWKHFKLOG V,(3SHULRGLFDOO\EXWQRW QRFRVWWRWKHSDUHQWVRIWKHFKLOGRQO\LILWLVQHFHVVDU\ OHVVWKDQDQQXDOO\WRGHWHUPLQHZKHWKHUWKHDQQXDOJRDOV IRUHGXFDWLRQDOSXUSRVHV IRUWKHFKLOGDUHEHLQJDFKLHYHGDQGLLUHYLVHVWKH,(3 DV DSSURSULDWH WR DGGUHVVo , DQ\ ODFN RI H[SHFWHG 7KHSV\FKRORJLVWjVQRWHVIURPKLVPHHWLQJVZLWK$ULHODQGKLV SURJUHVV WRZDUG WKH DQQXDO JRDOV DQG LQ WKH JHQHUDO PRWKHULQWKHIDOORILQGLFDWHWKDWKLVPRWKHUIHOW$ULHOjV FXUULFXOXP ZKHUH DSSURSULDWH ,, WKH UHVXOWV RI DQ\ EHKDYLRUDWKRPHZDVPDNLQJKHUOLIHmDOLYLQJKHOOl6KH UHHYDOXDWLRQ FRQGXFWHG XQGHU WKLV VHFWLRQ LQGLFDWHGKRZHYHUWKDWVKHZDVVDWLVILHGZLWK$ULHOjVVFKRRO ,,,LQIRUPDWLRQDERXWWKHFKLOGSURYLGHGWRRUE\WKH VLWXDWLRQLQ'HFHPEHURIVKRUWO\DIWHUKDYLQJUHTXHVWHG SDUHQWV ,9 WKH FKLOG V DQWLFLSDWHG QHHGV RU DQHPHUJHQF\PHHWLQJRIWKHHGXFDWLRQSURJUDPFRPPLWWHH 9RWKHUPDWWHUV DQGDQLQGHSHQGHQWFRQVXOWDQWjVHYDOXDWLRQRIWKHSURJUDP 7KLVLVWKHVWDQGDUGXQGHUZKLFKWKHIDLOXUHWRUHYLVH$ULHOjV 8OWLPDWHO\WKHTXHVWLRQEHFRPHVZKHWKHURUQRW$ULHOjV LQGLYLGXDOL]HGHGXFDWLRQSURJUDPVKRXOGEHPHDVXUHG6HH LQGLYLGXDOL]HGHGXFDWLRQSURJUDPZDVIRUPXODWHGLQRUGHUIRU DOVR&)57KHIHGHUDOFRXUWVKDYHVDLGOLWWOH $ULHOWRUHFHLYHVRPHHGXFDWLRQDOEHQHILW6HH0F/DXJKOLQ RQWKHIDLOXUHWRUHYLVHSURJUDPVEXW WKHVFKRROGLVWULFWLV )G DW 7KH GLVWULFW FRXUW IRXQG EDVHG RQ WKH UHTXLUHGWRUHYLVHWKHSURJUDPVDVDSSURSULDWH.LQJVGLG HYLGHQFH .LQJV SUHVHQWHG WKDW $ULHO UHFHLYHG HGXFDWLRQDO UHYLVH$ULHOjVSURJUDPDIWHUWKHFRQVXOWDQWVjUHSRUW$OWKRXJK EHQHILW IURP KLV \HDU DW .LQJV XQGHU KLV LQGLYLGXDOL]HG LW GLG QRW LPSOHPHQW HYHU\ FKDQJH UHFRPPHQGHG E\ WKH HGXFDWLRQSURJUDP$VWKHGLVWULFWFRXUWIXUWKHUQRWHGWKH FRQVXOWDQWVLWLPPHGLDWHO\PDGHPLQRUFKDQJHVDQGEHJDQ =HOD]Q\Vj H[SHUWV VKRZHG KRZ WR PD[LPL]H $ULHOjV SODQQLQJDQGWUDLQLQJIRUPRUHVLJQLILFDQWFKDQJHVLQWLPHIRU DFKLHYHPHQW LQ DQ LGHDO VHWWLQJ EXW WKH $FW GRHV QRW $ULHOjVQHZLQGLYLGXDOL]HGHGXFDWLRQSURJUDPWKHIROORZLQJ FRPPDQGWKDW.LQJVGRVR6HH5HQQHU)GDW IDOO 7KH=HOD]Q\VQH[WDUJXHWKDW.LQJVYLRODWHG$ULHOjVULJKWV 7KH=HOD]Q\VQH[WFODLPWKDW.LQJVIDLOHGWRFRPSO\ZLWK XQGHUWKH$FWZKHQ.LQJVIDLOHGWRUHYLVH$ULHOjVHGXFDWLRQ WKHSURFHGXUDOUHTXLUHPHQWVRIWKH$FW7KH=HOD]Q\VFODLP SURJUDP 7KH =HOD]Q\V FODLP WKH SURJUDP ZDV FOHDUO\ WKDWWKH\ZHUHLPSURSHUO\H[FOXGHGIURPWKHWKLUGPHHWLQJ LQVXIILFLHQWDVHYLGHQFHGE\&LQG\=HOD]Q\jVUHTXHVWLQWKH DERXW$ULHOjVHGXFDWLRQSURJUDP7KLVFRXUWKDVVDLGm:KLOH IDOOIRUDQHPHUJHQF\PHHWLQJUHJDUGLQJWKHSURJUDP6KH ZHVWULFWO\UHYLHZDQ,(3IRUSURFHGXUDOFRPSOLDQFHWHFKQLFDO FODLPV $ULHOjV EHKDYLRU ZDV GHWHULRUDWLQJ DQG VKH ZDV GHYLDWLRQVGRQRWUHQGHUDQ,(3LQYDOLGl'RQJ)GDW FRQFHUQHGIRUKLVSK\VLFDODQGHPRWLRQDOZHOOEHLQJDW.LQJV 7KH$FWUHTXLUHVmDQRSSRUWXQLW\IRUWKHSDUHQWVRID +LJK6FKRRO7KH=HOD]Q\VRIIHUWKHFRQVXOWDQWVjUHSRUWRQ FKLOG ZLWK D GLVDELOLW\ WR SDUWLFLSDWH LQ PHHWLQJV ZLWK $ULHOjV SURJUDP DV IXUWKHU SURRI RI LWV IDLOLQJV 7KH UHVSHFW WR WKH LGHQWLILFDWLRQ HYDOXDWLRQ DQG HGXFDWLRQDO SODFHPHQWRIWKHFKLOGDQGWKHSURYLVLRQRIDIUHHDSSURSULDWH 1R .LQJV/RFDO6FKRROY=HOD]Q\HWDO .LQJV/RFDO6FKRROY=HOD]Q\HWDO 1R SXEOLFHGXFDWLRQWRVXFKFKLOGl86&E SURFHGXUDOYLRODWLRQKDVUHVXOWHGLQVXFKVXEVWDQWLYHKDUP 7KLVFRXUWKDVIRXQGWKDWm>R@SSRUWXQLW\IRUSDUWLFLSDWLRQE\ DQGWKXVFRQVWLWXWHGDGHQLDORI>WKHFKLOGjV@ULJKWWRD)$3( SDUHQWVLVDQLPSRUWDQWDVSHFWl5HQQHU)GDW >IUHHDSSURSULDWHSXEOLFHGXFDWLRQ@PD\ZHµJUDQWVXFKUHOLHI DVWKHFRXUWGHWHUPLQHVLVDSSURSULDWHjl,GFLWLQJWKH$FW 1HYHUWKHOHVVSDUHQWSDUWLFLSDWLRQLQPHHWLQJVLVFODULILHGE\ :H ZHQW RQ WR VD\ m6XEVWDQWLYH KDUP RFFXUV ZKHQ WKH WKHLPSOHPHQWLQJUHJXODWLRQVm$PHHWLQJGRHVQRWLQFOXGH SURFHGXUDOYLRODWLRQVLQTXHVWLRQVHULRXVO\LQIULQJHXSRQWKH LQIRUPDO RU XQVFKHGXOHG FRQYHUVDWLRQV LQYROYLQJ SXEOLF SDUHQWV RSSRUWXQLW\WRSDUWLFLSDWHLQWKH,(3SURFHVVl,GDW DJHQF\ SHUVRQQHO DQG FRQYHUVDWLRQV RQ LVVXHV VXFK DV :HGRQRWEHOLHYHIURPWKHUHFRUGWKDWWKH=HOD]Q\V WHDFKLQJ PHWKRGRORJ\ OHVVRQ SODQV RU FRRUGLQDWLRQ RI ZHUHSUHFOXGHGIURPPHDQLQJIXOSDUWLFLSDWLRQLQWKHSURFHVV VHUYLFH SURYLVLRQ LI WKRVH LVVXHV DUH QRW DGGUHVVHG LQ WKH 0UV =HOD]Q\ PHW ZLWK $ULHOjV WHDFKHUV WR GLVFXVV $ULHOjV FKLOG V,(3l&)5E.LQJVFODLPVWKDW SURJUDPIRUWKHQLQWKJUDGH6KHVSHQWDJUHDWGHDORIWLPH WKHWKLUGPHHWLQJZDVLQVHUYLFHZRUNWRWUDLQWKHWHDFKHUVLQ WDONLQJZLWKLQVWUXFWRUVDERXW$ULHOjVQHHGV6KHPHWZLWK DFFRUGDQFH ZLWK WKH UHFRPPHQGDWLRQV RI WKH FRQVXOWDQWVj .LQJVWRGLVFXVVWKHSURJUDPDIWHULWVLQVWLWXWLRQ$W0UV UHSRUW EXW WKH =HOD]Q\V FODLP WKH PHHWLQJ ZDV WR UHYLVH =HOD]Q\jV UHTXHVW .LQJV KLUHG D FRQVXOWLQJ ILUP 7KH $ULHOjVLQGLYLGXDOL]HGHGXFDWLRQSODQ =HOD]Q\VDWWHQGHGWZRRIWKUHHPHHWLQJVUHJDUGLQJWKHILUPjV UHFRPPHQGDWLRQV /LNH WKH IDPLO\ LQ %XULORYLFK $ULHOjV $ VLPLODU VLWXDWLRQ DURVH LQ %XULORYLFK Y %RDUG RI SDUHQWV ZHUH LQWHJUDOO\ LQYROYHG LQ HDFK VWHS RI WKH (GXFDWLRQ RI /LQFROQ &RQVROLGDWHG 6FKRROV )G GHYHORSPHQW DQG LPSOHPHQWDWLRQ RI $ULHOjV LQGLYLGXDOL]HG WK&LU,QWKDWFDVHWKLVFRXUWIRXQGWKDWWKHSDUHQWV HGXFDWLRQSURJUDP GLGQRWVKRZWKH\ZHUHSUHYHQWHGIURPSDUWLFLSDWLQJLQWKH GHYHORSPHQWRIWKHLUFKLOGjVHGXFDWLRQSURJUDPZKHUHWKH\ %HFDXVHZH KROGWKDWWKHGLVWULFWFRXUWjVILQGLQJVRQWKH DWWHQGHG VHYHUDO PHHWLQJV RQ WKH SURJUDP H[SUHVVHG WKHLU IDFWVRIWKLVFDVHDUHQRWFOHDUO\HUURQHRXVDQGEHFDXVH.LQJV YLHZV FOHDUO\ DQG YRFDOO\ WKHUH KDG SDUWLFLSDWHG LQ WKH SURYLGHG$ULHOZLWKDIUHHDQGDSSURSULDWHSXEOLFHGXFDWLRQ RULJLQDOFUHDWLRQRIWKHSURJUDPDQGUHPDLQHGLQFRQWDFWZLWK ZH$)),50WKHGHFLVLRQRIWKHGLVWULFWFRXUW WKHVFKRROGLVWULFWWKURXJKOHWWHUVDQGSKRQHFRQYHUVDWLRQV ,GDW7KHFRXUWFRQFOXGHGm>3@ODLQWLIIVKDYHFLWHGQR VXSSRUW IRU WKHLU LPSOLFLW DVVHUWLRQ WKDW VFKRROV PD\ QHYHU GLVFXVV D FKLOG V ,(3 JRDOV REMHFWLYHV RU HGXFDWLRQDO PHWKRGRORJ\ RXW RI WKH SUHVHQFH RI WKH SDUHQWV )RU WKHVH UHDVRQVSODLQWLIIVKDYHIDLOHGWRGHPRQVWUDWHWKDWWKH\ZHUH GHQLHGSDUWLFLSDWLRQLQWKH>SURJUDPGHYHORSPHQW@SURFHVVl ,GVHHDOVR1/H[UHO0UV&Y.QR[&RXQW\6FK )G WK &LU )RU WKHVH UHDVRQV WKH GLVWULFW FRXUW SURSHUO\ IRXQG WKHUH ZDV QR SURFHGXUDO YLRODWLRQ (YHQLI.LQJVjIDLOXUHWRLQFOXGHWKH=HOD]Q\VLQWKHWKLUG PHHWLQJ ZLWK WKH FRQVXOWDQWV ZDV D YLRODWLRQ RI WKH $FWjV SURFHGXUDOUHTXLUHPHQWVWKH=HOD]Q\VPD\QRWEHHQWLWOHGWR UHOLHI6HH.QDEOH)GDWm2QO\LIZHILQGWKDWD
Document Info
Docket Number: 01-3841
Filed Date: 4/7/2003
Precedential Status: Precedential
Modified Date: 9/22/2015