- 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH DVVHW@ VDOH DV DQ DFFRPPRGDWLRQ E\ >1HZ 7UDFN@ WR DOORZ >3UHVLGHQW &DUGLQDOH@ WR PDNH DUUDQJHPHQWV WR VHOO KLV KRPH DQG PRYH KLV IDPLO\ WR 7H[DVl ' %U DW 2QH RI WKH VKDUHKROGHUV RI &ROXPELD RZQHG 1HZ 7UDFN 1R 1HZ 7UDFN@ WKH RSSRUWXQLW\ WR REWDLQ WKH ILQDQFLDO UHFRUGV IURP 3ODLQWLII 7KHSDUWLHVFDQQRWDJUHHZK\WKHFRXUWGLVPLVVHGWKHFDVH &KRLjV DFFRXQWDQW :KDW WKH &RXUW GLG QRW PDNH FOHDU ZDV WKDW WKLV 1HZ 7UDFNjV EULHI DWWHPSWV WR FKDUDFWHUL]H WKH FRXUWjV VKRXOG EH DFFRPSOLVKHG ZLWK 3ODLQWLIIVj IXOO FRRSHUDWLRQl s$ DW GHFLVLRQDVDVDQFWLRQIRU3ODLQWLIIVjPLVFRQGXFW,QIDFWWKH HPSKDVLV LQ RULJLQDO 3ODLQWLIIV YHKHPHQWO\ FRQWHQG WKDW WKH\ KDG DOUHDG\ SURYLGHG 1HZ 7UDFN ZLWK &.+jV 6RXWK .RUHDQ LQFRPH WD[ FRXUWGLVPLVVHGWKHFDVHIRUODFNRISHUVRQDOMXULVGLFWLRQ7KH UHWXUQ RQ 0DUFK DQG WKDW WKH FRXUWjV RUGHU UHIOHFWV LWV FRQIXVLRQ GLVWULFWFRXUWZURWHmWKHH[HUFLVHRIMXULVGLFWLRQLQWKLVFDVH 7KLV &RXUW KDV QR EDVLV WR TXHVWLRQ WKH GLVWULFW FRXUWjV IDFWXDO FRQFOXVLRQ ZRXOGµRIIHQGWUDGLWLRQDOQRWLRQVRIIDLUSOD\DQGVXEVWDQWLDO MXVWLFHj ,QWHUQDWLRQDO 6KRH 86 DW DQG >1HZ@ 7UDFNjV PRWLRQ WR GLVPLVV >EDVHG RQ ODFN RI SHUVRQDO 1HZ 7UDFN PRYHG WR VWULNH 0LQjV DIILGDYLW EHFDXVH 3ODLQWLIIV GLG QRW RIIHU 0LQ DV DQ H[SHUW DQG KLV HYDOXDWLRQV DQG RSLQLRQV DOOHJHGO\ GLG MXULVGLFWLRQ@VKRXOGEHDQGLVJUDQWHGls$DW$IWHU QRW FRPSO\ ZLWK )HG 5 (YLG JRYHUQLQJ OD\ WHVWLPRQ\ 7KH FRXUW FRQFOXGLQJLWVDQDO\VLVRISHUVRQDOMXULVGLFWLRQWKHRSLQLRQ QHYHU UXOHG RQ WKLV PRWLRQ 0RWLRQV WR GLVPLVV DUH QRW mUHVSRQVLYH SOHDGLQJVl ZLWKLQ WKH PHDQLQJ RI 5XOH D .DPHUPDQ Y 3DNFR &RV ,QF )5' &LU m$ PRWLRQ WR GLVPLVV LV QRW D UHVSRQVLYH SOHDGLQJ IRU WKH 6'1 1HZ7UDFN@UHTXHVWVWKDWVKRXOGWKH&RXUWGHFLGHQRWWR SHUVRQDOMXULVGLFWLRQSXUVXDQWWR5XOHERIWKH)HGHUDO GLVPLVVRQMXULVGLFWLRQDOJURXQGVWKH&RXUWWUDQVIHUWKLV 5XOHVRI&LYLO3URFHGXUHUHFHLYHVGHQRYRUHYLHZ%LUGY DFWLRQWRWKH:HVWHUQ'LVWULFWRI7H[DVXQGHU86& 3DUVRQV)GWK&LU1HRJHQ&RUSY DQG 86& D >1HZ 7UDFN@ DOVR 1HR *HQ 6FUHHQLQJ ,QF )G WK &LU SURFHHGVWRUHTXHVWLQWKHDOWHUQDWLYHDWUDQVIHURIYHQXH 7KHSDUW\VHHNLQJWRDVVHUWSHUVRQDOMXULVGLFWLRQEHDUV SXUVXDQWWRD86&DXQGHUWKHGRFWULQHRI WKH EXUGHQ RI GHPRQVWUDWLQJ WKDW VXFK MXULVGLFWLRQ H[LVWV IRUXPQRQFRQYHQLHQV7KH&RXUWGHFOLQHVWRWUDQVIHU 1HRJHQ)GDW:KHQWKHGLVWULFWFRXUWKROGVDQ WKLVPDWWHUWRWKH:HVWHUQ'LVWULFWRI7H[DVDQGKROGV HYLGHQWLDU\KHDULQJWRGHWHUPLQHMXULVGLFWLRQ3ODLQWLIIVPXVW WKDW LQ WKH LQWHUHVW RI MXVWLFH GLVPLVVDO LV WKH PRUH PDNHPRUHWKDQMXVWDmSULPDIDFLHVKRZLQJl,G3ODLQWLII DSSURSULDWH DYHQXH $V WKH SDUWLHV DQG WKLV &RXUW DUH PXVW HVWDEOLVK MXULVGLFWLRQ E\ D SUHSRQGHUDQFH RI WKH IXOO\ DZDUH RI WKH WRUWXUHG DQG OHQJWK\ KLVWRU\ RI WKLV HYLGHQFH6HUUDVY)LUVW7HQQ%DQN1DWjO$VVRFV)G FDVHSULPDULO\GXHWR3ODLQWLIIVjQXPHURXVDWWHPSWVWR WK&LU IUXVWUDWHGLVFRYHU\WKH&RXUWZLOOQRWUHFLWHWKHVSHFLILF LQVWDQFHVRIGLVFRYHU\DEXVHVSHUSHWUDWHGE\3ODLQWLIIV $IHGHUDOFRXUWPD\RQO\H[HUFLVHSHUVRQDOMXULVGLFWLRQLQ 7KLVFDVHKDVODQJXLVKHGLQWKLV&RXUWIRUDSSUR[LPDWHO\ DGLYHUVLW\FDVHLIVXFKMXULVGLFWLRQLVDXWKRUL]HGE\WKH VL[\HDUVDQGWKH&RXUWGHFOLQHVWREXUGHQWKH'LVWULFW ODZRIWKHVWDWHLQZKLFKWKHFRXUWVLWVDQGLVRWKHUZLVH &RXUW LQ 7H[DV ZLWK DQ DFWLRQ ZKLFK FRXOG KDYH DQG FRQVLVWHQW ZLWK WKH 'XH 3URFHVV &ODXVH RI WKH )RXUWHHQWK VKRXOG KDYH EHHQ ILOHG LQ 7H[DV DQG ZKLFK EXW IRU $PHQGPHQW5H\QROGVY,QWjO$PDWHXU$WKOHWLF)HGjQ 3ODLQWLIIVjGLODWRU\FRQGXFWFRXOGKDYHEHHQWUDQVIHUUHG )GWK&LU:HOVKY*LEEV)G ZLWKLQ WKH VWDWXWH RI OLPLWDWLRQV SHULRG :H DUH ZHOO WK &LU ,Q)OLJKW 'HYLFHV &RUS Y 9DQ DZDUH WKDW GLVPLVVDO RI WKLV DFWLRQ ZLOO PRVW FHUWDLQO\ 'XVHQ$LU,QF)GWK&LU SUHFOXGH3ODLQWLIIVIURPUHILOLQJWKLVDFWLRQLQ7H[DVGXH WRWKHDSSOLFDEOHVWDWXWHRIOLPLWDWLRQVEXWFDQQRWVD\LQ 7KHEHGURFNSULQFLSOHRISHUVRQDOMXULVGLFWLRQGXHSURFHVV JRRG FRQVFLHQFH WKDW 3ODLQWLIIVj FRQGXFW KDV QRW DQDO\VLVLVWKDWZKHQWKH'HIHQGDQWLVQRWSK\VLFDOO\SUHVHQW ZDUUDQWHGVXFKDVDQFWLRQ)RUWKLVUHDVRQZHGHFOLQHWR LQWKHIRUXPVKHPXVWKDYHmFHUWDLQPLQLPXPFRQWDFWVZLWK WUDQVIHUWKLVDFWLRQWRWKH:HVWHUQ'LVWULFWRI7H[DV LW VXFK WKDW WKH PDLQWHQDQFH RI WKH VXLW GRHV QRW RIIHQG µWUDGLWLRQDOQRWLRQVRIIDLUSOD\DQGVXEVWDQWLDOMXVWLFHjl,QWjO s$DWFLWDWLRQRPLWWHG7KLVSDVVDJHDGGUHVVHV 6KRH&RY:DVKLQJWRQ86TXRWLQJ WKHGHFLVLRQQRWWRWUDQVIHUDVRSSRVHGWRWKHGLVPLVVDOEDVHG 0LOOLNHQ Y 0H\HU 86 VHH DOVR RQODFNRISHUVRQDOMXULVGLFWLRQ +DQVRQY'HQFNOD86KROGLQJWKDWD 'HIHQGDQW PD\ QRW EH UHTXLUHG WR GHIHQG DQ DFWLRQ LQ D 2QsXQH3ODLQWLIIVWLPHO\DSSHDOHG IRUHLJQWULEXQDOXQOHVVKHKDVKDGPLQLPDOFRQWDFWVZLWKWKH IRUXP VWDWH m0LQLPXP FRQWDFWVl H[LVW ZKHQ mWKH ',6&866,21 'HIHQGDQWjVFRQGXFWDQGFRQQHFWLRQZLWKWKHIRUXP6WDWHDUH VXFK WKDW KH VKRXOG UHDVRQDEO\ DQWLFLSDWH EHLQJ KDOHG LQWR :H EHJLQ ZLWK WKH XQGHUO\LQJ TXHVWLRQ RI ZKHWKHU WKH FRXUWWKHUHl:RUOG:LGH9RONVZDJHQ&RUSY:RRGVRQ 'LVWULFW &RXUW IRU 6RXWKHUQ 'LVWULFW RI 2KLR KDG SHUVRQDO 86 ,W LV QHFHVVDU\ WKDW WKH 'HIHQGDQW MXULVGLFWLRQRYHU'HIHQGDQW1HZ7UDFN 1R @ LWVHOI RI WKH SULYLOHJH RI FRQGXFWLQJ PXVWSXUSRVHIXOO\DYDLOKLPVHOIRIWKHSULYLOHJHRIDFWLQJLQ DFWLYLWLHVZLWKLQWKHIRUXP6WDWHWKXVLQYRNLQJWKHEHQHILWV WKHIRUXPVWDWHRUFDXVLQJDFRQVHTXHQFHLQWKHIRUXPVWDWHl DQGSURWHFWLRQVRILWVODZV%XUJHU.LQJ&RUSY5XG]HZLF] mWKH FDXVH RI DFWLRQ PXVW DULVH IURP WKH GHIHQGDQW V 86 VHH DOVR 'HDQ Y 0RWHO DFWLYLWLHV WKHUHl DQG mWKH DFWV RI WKH GHIHQGDQW RU 2SHUDWLQJ/3)GWK&LU7KLV FRQVHTXHQFHVFDXVHGE\WKHGHIHQGDQWPXVWKDYHDVXEVWDQWLDO SXUSRVHIXO DYDLOPHQW UHTXLUHPHQW HQVXUHV WKDW D GHIHQGDQW HQRXJKFRQQHFWLRQZLWKWKHIRUXPVWDWHWRPDNHWKHH[HUFLVH ZLOO QRW EH KDOHG LQWR D MXULVGLFWLRQ VROHO\ DV D UHVXOW RI RIMXULVGLFWLRQRYHUWKHGHIHQGDQWUHDVRQDEOHl UDQGRPIRUWXLWRXVRUDWWHQXDWHGFRQWDFWVRURIWKHXQLODWHUDO DFWLYLW\ RI DQRWKHU SDUW\ RU D WKLUG SHUVRQ ,G TXRWDWLRQ 'XULQJ WKH \HDU LQ ZKLFK 1HZ 7UDFN RZQHG DQG PDUNV DQG FLWDWLRQV RPLWWHG m5DQGRPl mIRUWXLWRXVl RU RSHUDWHG 2OG 7UDFNjV EXVLQHVV EXW KDG QRW \HW PRYHG LW mDWWHQXDWHGlDFWLYLW\LVQRWDFRQVWLWXWLRQDOO\DGHTXDWHEDVLV HQWLUHO\ WR 6DQ $QWRQLR 1HZ 7UDFN KDG ILYH VLJQLILFDQW IRUMXULVGLFWLRQ.HHWRQY+XVWOHU0DJD]LQH,QF86 FRQWDFWVZLWK2KLR)LUVWDOWKRXJK1HZ7UDFNZDVIRUPHG XQGHU 1HYDGDODZPRVWRI1HZ7UDFNjVWDQJLEOHSURSHUW\ ZDVLQ2KLR6HFRQG1HZ7UDFNVHFXUHG2KLR WHOHSKRQH 7KH 6XSUHPH &RXUW GLVWLQJXLVKHV EHWZHHQ mJHQHUDOl VHUYLFHDQGUHJLVWHUHGZLWKYDULRXV2KLRDJHQFLHVDVDQ2KLR MXULVGLFWLRQDQGmVSHFLILFlMXULVGLFWLRQHLWKHURQHRIZKLFKLV HPSOR\HU 7KLUG ZKDWHYHU WKH FRQWUDFWXDO UHODWLRQVKLS DQDGHTXDWHEDVLVIRUSHUVRQDOMXULVGLFWLRQ6HHHJ%XUJHU EHWZHHQWKHSDUWLHV 3@XUSRVHIXOFRQGXFWSURYLGHVDGHIHQGDQWZLWKµIDLU ZDUQLQJj WKDW KH DQG KLV SURSHUW\ PD\ EH VXEMHFW WR WKH )LQDOO\mWKHDFWVRIWKHGHIHQGDQWRUFRQVHTXHQFHVFDXVHG H[HUFLVHRIDIRUXPVWDWHjVSRZHUlsRQHVY3HWW\5D\ E\WKHGHIHQGDQWPXVWKDYHDVXEVWDQWLDOHQRXJKFRQQHFWLRQ )GDWm7KRVHDFWLYLWLHVZKHWKHUGLUHFWDFWLRQLQWKH ZLWKWKHIRUXPVWDWHWRPDNHWKHH[HUFLVHRIMXULVGLFWLRQRYHU IRUXPRUFRQGXFWRXWVLGHWKHIRUXPPXVWMXVWLI\DFRQFOXVLRQ WKHGHIHQGDQWUHDVRQDEOHl60DFK)GDWVHH WKDWWKHGHIHQGDQWVKRXOGUHDVRQDEO\DQWLFLSDWHEHLQJFDOOHG DOVR$VDKL0HWDO,QGXV&R/WGY6XSHULRU&RXUW86 LQWR FRXUW WKHUHl $ VLQJOH DFW PD\ PHHW WKH SXUSRVHIXO GHFOLQLQJWRILQGVSHFLILFMXULVGLFWLRQEDVHG DYDLOPHQWUHTXLUHPHQW0F*HHY,QWj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l LQ WKH H[HUFLVH RI MXULVGLFWLRQ ZLOO MXVWLI\ HYHQ WKH VHULRXV EXUGHQVSODFHGRQWKHDOLHQGHIHQGDQW$VDKL86DW 1R WKH SODLQWLIIV@ DV D 5XOH VDQFWLRQ DIWHU WKH\ UHSHDWHGO\ H[SHQVHV LQFXUUHG LQ PDNLQJ WKH PRWLRQ LQFOXGLQJ IDLOHG WR SURYLGH FRPSOHWH DQG DSSURSULDWH UHVSRQVHV WR DWWRUQH\ VIHHVXQOHVVWKHFRXUWILQGVWKDWWKHPRWLRQZDV GLVFRYHU\UHTXHVWVlXQSXEOLVKHG7KHUHIRUHWKHGLVWULFW ILOHGZLWKRXWWKHPRYDQW VILUVWPDNLQJDJRRGIDLWKHIIRUW FRXUW GLG QRW HUU LQ LPSRVLQJ GLVFRYHU\ VDQFWLRQV RQ WRREWDLQWKHGLVFORVXUHRUGLVFRYHU\ZLWKRXWFRXUWDFWLRQ 3ODLQWLIIV RUWKDWWKHRSSRVLQJSDUW\ VQRQGLVFORVXUHUHVSRQVHRU REMHFWLRQ ZDV VXEVWDQWLDOO\ MXVWLILHG RU WKDW RWKHU 7KH GLVWULFW FRXUW ZDV LQFRUUHFW KRZHYHU WR LPSRVH DQ FLUFXPVWDQFHVPDNHDQDZDUGRIH[SHQVHVXQMXVW DGGLWLRQDO SHQDOW\ EDVHG RQ 3ODLQWLIIVj UHTXHVW IRU UHFRQVLGHUDWLRQRIWKHGLVFRYHU\VDQFWLRQV8QIRUWXQDWHO\DV )(' 5 &,9 3D$7KXVRQFHWKHFRXUWJUDQWVD ZLWKWKHHDUOLHUVDQFWLRQVRUGHUWKHFRXUWGLGQRWVSHFLI\WKH PRWLRQ WR FRPSHO DQG SURYLGHV WKH UHVSRQGLQJ SDUW\ DQ DXWKRULW\XSRQZKLFKLWUHOLHG RSSRUWXQLW\WREHKHDUGLWmVKDOOlUHTXLUHWKHUHVSRQGLQJSDUW\ WR SD\ WKH PRYLQJ SDUW\jV H[SHQVHV XQOHVV WKH UHVSRQGLQJ $FRXUWFDQQRWLPSRVHVDQFWLRQVXQGHU)HG&LY3&LY SDUW\ KDG D mVXEVWDQWLDO MXVWLILFDWLRQl RU VRPH RWKHU ZLWKRXWILUVWSURYLGLQJmQRWLFHDQGDUHDVRQDEOHRSSRUWXQLW\ FLUFXPVWDQFHPDNHVVXFKDQDZDUGXQMXVW5XOHKDVQR WRUHVSRQGlZKLFKWKHFRXUWGLGQRWGRZLWKUHVSHFWWRWKRVH EDGIDLWKUHTXLUHPHQW6HH5HJjO5HIXVH6\V,QFY,QODQG VDQFWLRQV VSHFLILFDOO\ UHODWHG WR WKH PRWLRQ WR UHFRQVLGHU 5HFODPDWLRQ&R)GWK&LUOLVWLQJ 6HH)HG5&LY3F5XOHDOORZVFRXUWVWRLPSRVH EDG IDLWK DV RQO\ RQH IDFWRU DPRQJ PDQ\ D FRXUW VKRXOG WKHIHHVDQGFRVWVLQFXUUHGLQPDNLQJDPRWLRQWRFRPSHODV FRQVLGHUEHIRUHGLVPLVVLQJDFDVHDVD5XOHVDQFWLRQ DGLVFRYHU\VDQFWLRQEXWLWGRHVQRWDXWKRUL]HVDQFWLRQVIRU RWKHU H[SHQVHV LQFOXGLQJ H[SHQVHV UHODWHG WR GHIHQGLQJ D 7KH GLVWULFW FRXUWjV VDQFWLRQV RUGHU GRHV QRW H[SODLQ PRWLRQIRUUHFRQVLGHUDWLRQ7HOOXULGH0JPW6ROXWLRQV,QF ZKHWKHUWKHFRXUWjVLQKHUHQWDXWKRULW\RU)HG5&LY3LV Y7HOOXULGH,QY*URXS )GWK&LU WKHEDVLVIRUWKHSHQDOW\6LQFHWKHFRXUWEHORZGLGQRWILQG )LQDOO\WKHFRXUWjVLQKHUHQWDXWKRULW\FDQQRWVHUYHDVDEDVLV EDGIDLWKRUWKDW3ODLQWLIIVjFRQGXFWZDVmWDQWDPRXQWWREDG IRUWKHVHVDQFWLRQVEHFDXVHWKHFRXUWPDGHQRILQGLQJRIEDG IDLWKl5RDGZD\([SUHVV86DWZHPXVWSUHVXPH IDLWK RU FRQGXFW WDQWDPRXQW WR EDG IDLWK 6HH 5RDGZD\ WKHFRXUWVDQFWLRQHG3ODLQWLIIVXQGHU5XOH ([SUHVV86DW)LUVW%DQNRI0DULHWWD)GDW 7KXV QR OHJDO EDVLV H[LVWV IRU WKH LPSRVLWLRQ RI WKH %HIRUHLPSRVLQJWKHSHQDOW\WKHFRXUWKHOGDKHDULQJWKDW DGGLWLRQDO VDQFWLRQV UHODWHG WR WKH PRWLRQ WR UHFRQVLGHU JDYH3ODLQWLIIVDQRSSRUWXQLW\WREHKHDUG3ODLQWLIIVFODLPHG &RQVHTXHQWO\ZHUHYHUVHWKRVHVDQFWLRQVLVVXHGLQUHVSRQVH WKDWWKHUHTXHVWHGILQDQFLDOVWDWHPHQWVQHYHUH[LVWHGDQGWKDW WR3ODLQWLIIVj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jWRI3XE+HDOWK1R:/ VDQFWLRQV ZKHQ D SDUW\ KDV ILOHG D IULYRORXV SOHDGLQJ PRWLRQ RU RWKHU SDSHU %RGHQKDPHU %OGJ &RUS Y $UFKLWHFWXUDO 5HVHDUFK &RUS WK&LU0D\m7KHGLVWULFWFRXUWGLGQRW )G WK &LU 7KH FRXUW PLJKW KDYH IRXQG WKH PRWLRQ WR UHFRQVLGHU IULYRORXV 1R WKHILQDQFLDOVWDWHPHQWV@GRQRWH[LVWls$DW+H $QDIILGDYLWILOHGXQGHUPXVWDOOHJH>@IDFWVZKLFKD DOVR FDOOHG 3ODLQWIIVj DIILGDYLWV mXQEHOLHYDEOHl DQG WKHLU UHDVRQDEOHSHUVRQZRXOGEHOLHYHZRXOGLQGLFDWHDMXGJHKDV GLVFRYHU\FRQGXFWmGHSORUDEOHls$DW6HFRQG DSHUVRQDOELDVDJDLQVWWKHPRYLQJSDUW\*HQ$YLDWLRQ,QF 3ODLQWLIIV DFFXVH WKH MXGJH RI UDFLVP ,Q WKHLU EULHI WKH\ Y&HVVQD$LUFUDIW&R)GWK&LU DUJXH 7KHDOOHJHGELDVPXVWVWHPIURPDQH[WUDMXGLFLDOVRXUFH 6WHUHRW\SHG GLVWUXVW RI WKH .RUHDQV UHDFKHG LWV DSH[ DQGUHVXOWLQDQRSLQLRQRQWKHPHULWVRQVRPHEDVLVRWKHU ZKHQWKHPDJLVWUDWHHPEUDFHG>1HZ@7UDFNjVSURSRVHG WKDQ ZKDW WKH MXGJH OHDUQHG IURP KLV SDUWLFLSDWLRQ LQ WKH HWKQLFFODVVLILFDWLRQSURFHGXUH2XWRIDQH[SOLFLWIHDU FDVH8QLWHG6WDWHVY*ULQQHOO&RUS86 WKDWWKHVHOHFWHG.RUHDQDFFRXQWDQWZRXOGVLGHZLWKKLV ([WUDMXGLFLDOFRQGXFWHQFRPSDVVHVRQO\SHUVRQDO RZQNLQGFRXQVHOIRUWKHSDUWLHVZHUHSURKLELWHGIURP ELDVDVGLVWLQJXLVKHGIURPDMXGLFLDORQHDULVLQJRXWRIWKH GLVFORVLQJ DQ\WKLQJ DERXW WKH FDVH WR WKH .RUHDQ MXGJH VEDFNJURXQGDQGDVVRFLDWLRQDQGQRWIURPWKHMXGJH V DFFRXQWDQWoSURKLELWHGHYHQIURPGLVFORVLQJWKHSDUWLHV YLHZ RI WKH ODZ ,G DW LQWHUQDO TXRWDWLRQ PDUNV WKDWWKH\UHSUHVHQWHG7KHPDJLVWUDWHHYHQSUHVFULEHGD RPLWWHG 3HUVRQDO ELDV LV SUHMXGLFH WKDW HPDQDWHV IURP mVDQLWL]HGl SURWHFWLYH RUGHUnmVDQLWL]HGl WKDW LV WR VRPH VRXUFH RWKHU WKDQ SDUWLFLSDWLRQ LQ WKH SURFHHGLQJV RU SUHYHQWWKHVHOHFWHG.RUHDQDFFRXQWDQWIURPILQGLQJRXW SULRUFRQWDFWZLWKUHODWHGFDVHV:KHHOHUY6RXWKODQG&RUS WKHLGHQWLW\RIWKHSDUWLHVZKRZDVUHSUHVHQWLQJZKRP )GWK&LUFLWLQJ'HPMDQMXNY RUDQ\WKLQJHOVHDERXWWKHGLVSXWH 3HWURYVN\)GWK&LU 3O %U DW 3ODLQWLIIV DUJXH WKDW WKH PDJLVWUDWH MXGJH $VZHKDYHH[SODLQHGm>L@WLVZHOOVHWWOHGWKDWVHFWLRQV VKRXOG KDYHUHFXVHGKLPVHOIEHFDXVHRIKLVDOOHJHGUDFLVP DQG µPXVW EH FRQVWUXHG LQ SDUL PDWHULDj DQG µWKDW DQGJHQHUDOSUHGLVSRVLWLRQWRGLVEHOLHYH3ODLQWLIIV GLVTXDOLILFDWLRQXQGHUVHFWLRQDPXVWEHSUHGLFDWHGDV SUHYLRXVO\ XQGHU VHFWLRQ XSRQ H[WUDMXGLFLDO FRQGXFW 3ODLQWLIIV EURXJKW WKHLU PRWLRQ WR UHFXVH WKH PDJLVWUDWH UDWKHUWKDQRQMXGLFLDOFRQGXFWjl8QLWHG6WDWHVY6WRU\ MXGJH XQGHU 86& D ZKLFK SURYLGHV m$Q\ 1R WKH@MXGJH KDVDSHUVRQDOELDVDJDLQVWWKH>P@*HQ$YLDWLRQ)G DW3ODLQWLIIVjUHTXHVWIRUUHFXVDOLVEDVHOHVV )RUWKHUHDVRQVVWDWHGDERYHZH5(9(56(WKHGLVPLVVDO ZLWK SUHMXGLFH EDVHG RQ SHUVRQDO MXULVGLFWLRQ DQG WKRVH VDQFWLRQVUHODWHGWRWKHPRWLRQWRUHFRQVLGHUDQG$)),50 DOORWKHUVDQFWLRQVDQGWKHGHQLDORIWKHPRWLRQWRUHFXVH
Document Info
Docket Number: 01-3625
Filed Date: 3/24/2003
Precedential Status: Precedential
Modified Date: 9/22/2015