Hamad v. Woodcrest Condo ( 2003 )


Menu:
  • 5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH   +DPDGHWDOY:RRGFUHVW 1RV (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU &RQGR$VVjQHWDO )LOH 1DPH DS $SSHOODQWV(ULN*&KDSSHOO/ KHUQHSKHZ@l7KHFRXUWVXEVHTXHQWO\ 7KH\DWWULEXWHSDUWRIWKHLUGLIILFXOW\LQVHOOLQJWKHXQLWWRWKH JUDQWHG VXPPDU\ MXGJPHQW DJDLQVW sR\HOOD RQ WKH E\ODZVWKDWUHVWULFWFKLOGUHQWRILUVWIORRUFRQGRPLQLXPXQLWV GLVFULPLQDWLRQFODLP .D\ODsR\HOODRZQVDWKLUGIORRUXQLW6KHZDVWKLQNLQJ $IWHUWKHGLVWULFWFRXUWGHQLHGDPRWLRQE\sR\HOODDQGWKH DERXW EHFRPLQJ WKH OHJDO FXVWRGLDQ RI KHU \HDUROG +DPDGVWRILOHDVHFRQGDPHQGPHQWWRWKHLUFRPSODLQWWULDO QHSKHZDQGKDGWDNHQSUHOLPLQDU\VWHSVWRZDUGWKDWHQGLQ FRPPHQFHG RQ WKH UHWDOLDWLRQ FODLPV LQ )HEUXDU\ RI  0D\RI%XWWKH:RRGFUHVWERDUGRIGLUHFWRUVGHQLHG 7KHGLVWULFWFRXUWJUDQWHGMXGJPHQWDVDPDWWHURIODZLQIDYRU sR\HOODjVUHTXHVWIRUSHUPLVVLRQWRDOORZKHUQHSKHZWRPRYH RIWKHGHIHQGDQWVDWWKHFORVHRIsR\HOODjVDQGWKH+DPDGVj LQZLWKKHU FDVHLQFKLHI$WLPHO\QRWLFHRIDSSHDOZDVILOHG%RWKWKLV DSSHDO DQG WKH DSSHDO IURP WKH GHQLDO RI sR\HOODjV DQG WKH ,QsXQHRIsR\HOODDQGWKH+DPDGVILOHGVXLWLQWKH +DPDGVjPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQDUHQRZEHIRUH 8QLWHG 6WDWHV 'LVWULFW &RXUW IRU WKH (DVWHUQ 'LVWULFW RI XV 0LFKLJDQ DJDLQVW :RRGFUHVW SURSHUW\ PDQDJHU %DUEDUD 'LHGULFK DQG ILYH PHPEHUV RI :RRGFUHVWjV ERDUG RI ,,$1$/ D@OWKRXJKQR RQH IDFWRU LV FRQWUROOLQJ D ILQGLQJ WKDW WKHUH LV VLPSO\ QR 7KH UDWLRQDOH RQ ZKLFK WKH GLVWULFW FRXUW EDVHG LWV OLNHOLKRRGRIVXFFHVVRQWKHPHULWVLVXVXDOO\IDWDOl*RQ]DOHV GHFLVLRQnWKDWWKHVHUHTXLUHPHQWVFDQEHPHWRQO\E\SHUVRQV Y1DWjO%GRI 0HG([DPjUV)G WK&LU ZKR DUH GLUHFWO\ DQG LPPHGLDWHO\ VXEMHFWHG WR   WKH GLVWULFW FRXUW DQDO\]HG RQO\ WKH ILUVW IDFWRU  ,W GLVFULPLQDWLRQnKDVEHHQUHMHFWHGE\WKH6XSUHPH&RXUW,Q GHQLHGWKHPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQRQWKHEDVLV 7UDIILFDQWHY0HWURSROLWDQ/LIH,QVXUDQFH&R86 WKDWQHLWKHUsR\HOODQRUWKH+DPDGVKDGVWDQGLQJWRVXHXQGHU   D EODFN WHQDQW DQG D ZKLWH WHQDQW RI DQ DSDUWPHQW WKH)DLU+RXVLQJ$FW FRPSOH[EURXJKWVXLWXQGHUWKH)DLU+RXVLQJ$FWDOOHJLQJ WKDWWKHLUODQGORUGUDFLDOO\GLVFULPLQDWHGDJDLQVWQRQZKLWHV 7KH)DLU+RXVLQJ$FWSURKLELWVGLVFULPLQDWLRQLQWKHVDOH ,GDW7KH&RXUWKHOGWKDWERWKWHQDQWVKDGVWDQGLQJ RU UHQWDO RI KRXVLQJ EHFDXVH RI mUDFH FRORU UHOLJLRQ VH[ EHFDXVHmWKHDOOHJHGLQMXU\WRH[LVWLQJWHQDQWVE\H[FOXVLRQRI IDPLOLDOVWDWXVRUQDWLRQDORULJLQl86&†$Q\ PLQRULW\SHUVRQVIURPWKHDSDUWPHQWFRPSOH[LVWKHORVVRI mDJJULHYHG SHUVRQl LV DXWKRUL]HG WR EULQJ D FLYLO DFWLRQ LPSRUWDQWEHQHILWVIURPLQWHUUDFLDODVVRFLDWLRQVl,GDW SXUVXDQWWR86&†7KH$FWGHILQHVDQmDJJULHYHG m7KHSHUVRQRQWKHODQGORUGjVEODFNOLVWLVQRWWKHRQO\ SHUVRQl DV RQH ZKR m   FODLPV WR KDYH EHHQ LQMXUHG E\ D YLFWLPRIGLVFULPLQDWRU\KRXVLQJSUDFWLFHVLWLVWKHZKROH GLVFULPLQDWRU\ KRXVLQJ SUDFWLFH RU   EHOLHYHV WKDW VXFK FRPPXQLW\l,GDW LQWHUQDOTXRWDWLRQPDUNVRPLWWHG  SHUVRQZLOOEHLQMXUHGE\DGLVFULPLQDWRU\KRXVLQJSUDFWLFH WKDW LV DERXW WR RFFXUl ,G†  L   ,Q GHFLGLQJ WKDW WKH sR\HOOD KDV VWDQGLQJ WR FKDOOHQJH :RRGFUHVWjV E\ODZV +DPDGVGLGQRWKDYHVWDQGLQJWRVXHDVmDJJULHYHGSHUVRQVl ZKLFK IDFLDOO\ GLVFULPLQDWH RQ WKH EDVLV RI IDPLOLDO VWDWXV WKH GLVWULFW FRXUW UHDVRQHG m>7@KH +DPDGV OLYH LQ DQG DUH EHFDXVHWKH\DGYHUVHO\DIIHFWHGKHUGHVLUHWRKDYHKHUWHHQDJH DWWHPSWLQJ WR VHOO D FRQGRPLQLXP XQLW WKDW LV RQ WKH ILUVW QHSKHZ PRYH LQ ZLWK KHU DQG EHFDXVH JLYHQ WKDW sR\HOOD IORRURQHWKDWPD\EHSXUFKDVHGE\IDPLOLHVZLWKFKLOGUHQl FRXOGQRWVHOOKHUVHFRQGIORRUXQLWWRDIDPLO\ZLWKFKLOGUHQ $V IRU sR\HOOD WKH FRXUW FRQFOXGHG WKDW VKH WRR ODFNHG WKHE\ODZVGLPLQLVKHGWKHQXPEHURISRWHQWLDOEX\HUVIRUKHU VWDQGLQJEHFDXVHVKHGLGmQRW\HWKDYHOHJDOFXVWRG\RIKHU XQLW  7KH 6HYHQWK &LUFXLW UHDFKHG D VLPLODU FRQFOXVLRQ LQ PLQRUQHSKHZl *RUVNLY7UR\)G WK&LU ,Q*RUVNL WHQDQWV ZKR ZDQWHG WR EHFRPH IRVWHU SDUHQWV VRXJKW 7KH6XSUHPH&RXUWKDVKHOGKRZHYHUWKDWVWDQGLQJWRVXH SHUPLVVLRQIURPWKHLUODQGORUGWRKDYHFKLOGUHQOLYHLQWKHLU XQGHUWKH$FWLVmDVEURDGDVLVSHUPLWWHGE\$UWLFOH,,,RIWKH VHFRQGIORRUDSDUWPHQWEXWWKHODQGORUGUHIXVHGH[SODLQLQJ &RQVWLWXWLRQl*ODGVWRQH5HDOWRUVY9LOORI%HOOZRRG WKDWFKLOGUHQZHUHSHUPLWWHGRQO\LQILUVWIORRUDSDUWPHQWV,G 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO DW7KHWHQDQWVZHUHHYLFWHGZKHQWKH\VRXJKWWRKDYH ,G DW   ,Q WKH 6XSUHPH &RXUWjV DQDO\VLV VWDQGLQJ WR WKH GLVFULPLQDWRU\ SROLF\ FKDQJHG  ,G  ,Q UHYHUVLQJ WKH FKDOOHQJHWKHDOOHJHGGLVFULPLQDWRU\SUDFWLFHGLGQRWWXUQRQ GLVPLVVDORIWKHFRPSODLQWZKLFKWKHGLVWULFWFRXUWEDVHGRQ WKHPDQQHURUH[WHQWRIWKHPDQLSXODWLRQ6HH+HLJKWV&RPW\ DODFNRIVWDQGLQJWKH6HYHQWK&LUFXLWVWDWHG &RQJ Y +LOOWRS 5HDOW\ ,QF  )G   WK &LU   UHMHFWLQJ WKH DUJXPHQW WKDW WKH FDVH VKRXOG EH (YHQLIZHDVVXPHDUJXHQGRWKDWWKH*RUVNLVKDGQRW GLVPLVVHGRQVWDQGLQJJURXQGVZKHUHWKHUHDOWRUVDUJXHGWKDW \HWDFKLHYHGmIDPLOLDOVWDWXVlDVWKDWWHUPLVGHILQHGLQ WKH &LW\ RI &OHYHODQG +HLJKWV DQG WKH QRQSURILW DGYRFDF\ WKH$FWWKH7UR\VjDOOHJHGDFWLRQVDWWKHYHU\OHDVWVWLOO RUJDQL]DWLRQ KDG IDLOHG WR SURYH DW WULDO WKDW FLW\ UHVLGHQWV ZHUH GLVFULPLQDWRU\ EHFDXVH WKH 7UR\V H[SUHVVHG D ZHUHEHLQJGHSULYHGRIWKHEHQHILWVRILQWHUUDFLDODVVRFLDWLRQV SUHIHUHQFHIRUWHQDQWVRQWKHEDVLVRIIDPLOLDOVWDWXVLQ GHVSLWHWKHUHDOWRUVjFRQWHQWLRQWKDWmWKH&LW\ZDVUHODWLYHO\ YLRODWLRQRIVHFWLRQ F DQGLQYLRODWLRQRIVHFWLRQ VWDEOHUDFLDOO\ZKHQWKHDOOHJHGYLRODWLRQVRFFXUUHGDQG  UHWDOLDWHG DJDLQVW WKH *RUVNLV ZKHQ WKH FRXSOH WKH&LW\IDLOHGWRSURYHDQ\FRQQHFWLRQEHWZHHQDQ\RIWKH DWWHPSWHG WR KDYH WKH GLVFULPLQDWRU\ SROLF\ FKDQJHG DOOHJHGYLRODWLRQVDQGDQ\WKUHDWHQHGUHVHJUHJDWLRQl  LQWHUQDO 7KHVHDFWLYLWLHVFOHDUO\ZHUHWKHVRXUFHRIWKH*RUVNLVj TXRWDWLRQPDUNVRPLWWHG  DOOHJHGLQMXU\ ,QVWHDGVWDQGLQJGHSHQGVRQZKHWKHURQHLVDPHPEHURI ,GDW WKHFRPPXQLW\LQZKLFKDOOHJHGO\XQODZIXOGLVFULPLQDWLRQLV WDNLQJSODFH7KH6XSUHPH&RXUWDSSOLHGWKLVSULQFLSOHLQ :KHWKHUWKH+DPDGVKDYHVWDQGLQJWRFKDOOHQJHWKHE\ODZV *ODGVWRQHE\KROGLQJWKDWWKHSODLQWLIIVZKRmFODLPHGWREH LVDPRUHGLIILFXOWTXHVWLRQ%HFDXVHWKH+DPDGVOLYHGLQD LQMXUHGDVKRPHRZQHUVLQWKHFRPPXQLW\lKDGVWDQGLQJ ILUVWIORRUFRQGRPLQLXPXQLWWKHE\ODZVGLGQRWGLVFRXUDJH 86DWZKHUHDVWKHSODLQWLIIVZKRZHUHQRWPHPEHUVRI WKHP IURP KDYLQJ FKLOGUHQ QRU GLG WKH E\ODZV IRUPDOO\ WKHDIIHFWHGFRPPXQLW\GLGQRWLGDWQ m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l  FKLOGUHQ 6LPLODUO\WKH+DPDGVDOOHJHGWKDWWKH\ZHUHPHPEHUVRI ,Q*ODGVWRQHKRZHYHUWKH&RXUWKHOGWKDWWKHLQGLYLGXDO DFRPPXQLW\ZKRVHIDPLOLDOVWDWXVFRPSRVLWLRQZDVEHLQJ SODLQWLIIVKDGVWDQGLQJEHFDXVHWKH\mFODLPHGWREHLQMXUHGDV PDQLSXODWHG$QDORJRXVWRWKHSODLQWLIIVLQ*ODGVWRQHWKH KRPHRZQHUV LQ WKH FRPPXQLW\ DJDLQVW ZKLFK SHWLWLRQHUVj +DPDGVZHUHQRWFRPSOHWHO\GHSULYHGRIWKHEHQHILWVWREH DOOHJHG>GLVFULPLQDWRU\SUDFWLFH@KDVEHHQGLUHFWHGl86 GHULYHG IURP VRFLDO DVVRFLDWLRQV ZLWK IDPLOLHV KDYLQJ DW*ODGVWRQHLQYROYHGDOOHJHGUDFLDOGLVFULPLQDWLRQE\ FKLOGUHQ EXW DV UHVLGHQWV RI :RRGFUHVW WKH\ VXIIHUHG WKH UHDOWRUVLQDSDUWLFXODUQHLJKERUKRRGEXWQRDOOHJDWLRQVZHUH VWLJPDWLF KDUP RI OLYLQJ LQ D FRPPXQLW\ ZKRVH PHPEHUV PDGH WKDW WKH UHVLGHQWV RI WKH FRPPXQLW\ KDG EHHQ ZHUHVHJUHJDWHGRQWKHEDVLVRIDSURKLELWHGFODVVLILFDWLRQ FRPSOHWHO\GHSULYHGRIWKHEHQHILWVRILQWHUUDFLDODVVRFLDWLRQV 6HH7UDIILFDQWH86DW UHFRJQL]LQJDVSDUWRIWKH 7KH SODLQWLIIVj FRQWHQWLRQ UDWKHU ZDV WKDW WKH mUDFLDO LQMXU\WKDWFRQIHUUHGVWDQGLQJRQWKHSODLQWLIIVWKDWmWKH\KDG FRPSRVLWLRQlRIWKHLUQHLJKERUKRRGZDVmEHLQJPDQLSXODWHGl VXIIHUHG HPEDUUDVVPHQW DQG HFRQRPLF GDPDJH LQ VRFLDO 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO EXVLQHVVDQGSURIHVVLRQDODFWLYLWLHVIURPEHLQJµVWLJPDWL]HGj VHJUHJDWLRQHYHQLIWKH\GLGQRWLQWURGXFHHYLGHQFHWKDWWKH\ DVUHVLGHQWVRIDµZKLWHJKHWWRjl 7KHGLVVHQWGLVDJUHHVZLWK VXIIHUHGVXFKKDUP  WKLVDQDORJ\FLWLQJWKH*ODGVWRQH&RXUWjVVWDWHPHQWWKDWm>D@ µQHLJKERUKRRGjZKRVHUDFLDOFRPSRVLWLRQDOOHJHGO\LVEHLQJ 7KHMXULVSUXGHQFHRIWKH6XSUHPH&RXUWDQGWKLVFRXUWRQ PDQLSXODWHGPD\EHVRH[WHQVLYHLQDUHDVRKHDYLO\RUHYHQ VWDQGLQJWRVXHIRUGLVFULPLQDWLRQXQGHUWKH)DLU+RXVLQJ$FW VR VSDUVHO\ SRSXODWHG RU VR ODFNLQJ LQ VKDUHG VRFLDO DQG ZDVGHYHORSHGEHIRUH&RQJUHVVDPHQGHGWKH$FWLQWR FRPPHUFLDOLQWHUFRXUVHWKDWWKHUHZRXOGEHQRDFWXDOLQMXU\ LQFOXGH mIDPLOLDO VWDWXVl DV D SURVFULEHG FODVVLILFDWLRQ WRDSDUWLFXODUUHVLGHQWl86DW 'LVVHQWLQJ2SDW 3HUKDSV IRU WKLV UHDVRQ ZH KDYH IRXQG QR SUHFHGHQW WKDW  $OWKRXJKWKLVSRLQWPLJKWZHOODSSO\WREDUDKRPHRZQHU GLUHFWO\ DGGUHVVHV WKH VWDQGLQJ WR VXH RI SHUVRQV LQ D OLYLQJLQVD\&KLFDJRIURPFKDOOHQJLQJ:RRGFUHVWjVE\ODZV FRPPXQLW\ZKHUHVHJUHJDWLRQLVWDNLQJSODFHIORRUE\IORRU E\ GHILQLQJ KLV RU KHU mQHLJKERUKRRGl DV WKH 0LGZHVW LW UDWKHU WKDQ E\ EXLOGLQJ RU DUHD  :H KDYH QR GLIILFXOW\ VXUHO\GRHVQRWDSSO\WRWKHRZQHUVRIFRQGRPLQLXPXQLWVLQ FRQFOXGLQJ KRZHYHU WKDW KDG WKH 6XSUHPH &RXUW LQ DIRXUEXLOGLQJGHYHORSPHQW 7UDIILFDQWHDQG*ODGVWRQHEHHQIDFHGZLWKDOOHJDWLRQVWKDWWKH SODLQWLIIVOLYHGLQDFRPPXQLW\ZKHUHZKLWHUHVLGHQWVZHUH 7KHGLVVHQWDOVRDUJXHVWKDWsR\HOODDQGWKH+DPDGVIDLOHG SHUPLWWHG WR OLYH RQ DQ\ IORRU EXW EODFN UHVLGHQWV ZHUH WRSOHDGWKHSUHFLVHQDWXUHRIWKHKDUPWKDWWKH\VXIIHUHGDV UHVWULFWHGWRWKHILUVWIORRUWKH&RXUWZRXOGKDYHIRXQGWKDW KRPHRZQHUV LQ WKH FRPPXQLW\  'LVVHQWLQJ 2S DW  DOOSHUVRQVLQWKHFRPPXQLW\ZRXOGKDYHKDGVWDQGLQJWRVXH ,QMXU\ KRZHYHU LV QRW D PDWWHU WKDW PXVW EH SOHG ZLWK IRUDYLRODWLRQRIWKH)DLU+RXVLQJ$FW6HH*ODGVWRQH SDUWLFXODULW\6HH6ZLHUNLHZLF]Y6RUHPD1$86 86 DW  m3HWLWLRQHUV VXJJHVW WKDW WKHUH LV D FULWLFDO    m5XOH D jVVLPSOLILHGSOHDGLQJVWDQGDUGDSSOLHV GLVWLQFWLRQEHWZHHQDQDSDUWPHQWFRPSOH[HYHQRQHDVODUJH WRDOOFLYLODFWLRQVZLWKOLPLWHGH[FHSWLRQVl ,QDQ\HYHQW DV WKDW LQ 7UDIILFDQWH DQG D  E\ EORFN UHVLGHQWLDO WKH WRXFKVWRQH IRU VWDQGLQJ XQGHU WKH )DLU +RXVLQJ $FW LV QHLJKERUKRRG$OWKRXJKWKHUHDUHIDFWXDOGLIIHUHQFHVZHGR ZKHWKHU RQH LV D PHPEHU RI WKH FRPPXQLW\ LQ ZKLFK QRW YLHZ WKHP DV FRQWUROOLQJ LQ WKLV FDVHl  IRRWQRWH DOOHJHGO\XQODZIXOGLVFULPLQDWLRQLVWDNLQJSODFHDQGsR\HOOD RPLWWHG :HWKHUHIRUHFRQFOXGHWKDWWKHDOOHJDWLRQVRIWKH DQGWKH+DPDGVFOHDUO\DOOHJHGWKDWWKH\ZHUHUHVLGHQWVRI +DPDGV LQ WKLV FDVH ZHUH VXIILFLHQW WR VDWLVI\ WKH :RRGFUHVW FRQVWLWXWLRQDOVWDQGLQJUHTXLUHPHQWV :HDUHDOVRXQSHUVXDGHGE\WKHGLVVHQWjVFRQWHQWLRQWKDW 7KHGLVWULFWFRXUWLQWKHSUHVHQWFDVHLQUHDFKLQJDFRQWUDU\ sR\HOODDQGWKH+DPDGVODFNHGVWDQGLQJEHFDXVHWKH\IDLOHG FRQFOXVLRQUHOLHGSULQFLSDOO\XSRQ)DLU+RXVLQJ&RQJUHVVY WRRIIHUHYLGHQFHWKDWWKH\VXIIHUHGDQ\RIWKHVWLJPDWLFRU :HEHU)6XSS &'&DO ,Q)DLU+RXVLQJ HFRQRPLFKDUPDVVRFLDWHGZLWKPHPEHUVKLSLQDFRPPXQLW\ WKHmGHIHQGDQWVDUJXH>G@WKDWWKHLQGLYLGXDOSODLQWLIIVZHUH ZKRVH IDPLOLDOVWDWXV FRPSRVLWLRQ ZDV EHLQJ PDQLSXODWHG QRWWKHPVHOYHVVWHHUHG3ODLQWLIIVFRQFHGH>G@WKDWWKLVLVVR 'LVVHQWLQJ2SDW %LQGLQJFLUFXLWSUHFHGHQWLVWRWKH DVDUHVXOWWKH>WZRLQGLYLGXDOSODLQWLIIV@ODFN>HG@VWDQGLQJDV FRQWUDU\+HLJKWV&RPW\&RQJ)GDW KROGLQJ µDJJULHYHGSHUVRQVjZKRPD\ILOHVXLWXQGHU86&† WKDWPHPEHUVRIWKHFRPPXQLW\LQZKLFKDOOHJHGO\XQODZIXO WRUHPHG\KRXVLQJGLVFULPLQDWLRQl,GDWm6WHHULQJl GLVFULPLQDWLRQZDVWDNLQJSODFHKDGVWDQGLQJWRVXHEHFDXVH LV WKH SUDFWLFH RI GLUHFWLQJ VHHNHUV RI KRXVLQJ DZD\ IURP DVPHPEHUVRIWKHFRPPXQLW\WKH\ZHUHWKUHDWHQHGZLWKWKH FHUWDLQORFDWLRQVIRUWKHSXUSRVHRIPDLQWDLQLQJSDWWHUQVRI VWDJPDWLF DQG HFRQRPLF KDUP DWWHQGDQW WR SURVFULEHG VHJUHJDWLRQ   +HLJKWV &RPW\ &RQJ  )G DW  FLWLQJ+DYHQV5HDOW\&RUSY&ROHPDQ86 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO Q    7KH GHFLVLRQ LQ )DLU +RXVLQJ VWULNHV XV DV DSSHOODWHEULHILQJWKDWVXEVHTXHQWWRWKHGLVWULFWFRXUWjVGHQLDO LQFRQVLVWHQWZLWKWKHKROGLQJVLQ7UDIILFDQWHDQG*ODGVWRQH RIWKHSUHOLPLQDU\LQMXQFWLRQWKHGHIHQGDQWVHQWHUHGLQWRDQ 86DW86DW,QDQ\HYHQWWKH DJUHHPHQWZLWKWKH8QLWHG6WDWHV'HSDUWPHQWRIsXVWLFHWRQR UHDVRQLQJRIWKH)DLU+RXVLQJFRXUWLVQRWDSSOLFDEOHWRWKH ORQJHUHQIRUFHWKHFKDOOHQJHGSROLFLHV&ODLPVE\sR\HOODDQG LQVWDQWFDVHEHFDXVHQRQHRIsR\HOODjVFODLPVDQGRQO\RQHRI WKH +DPDGV IRU LQMXQFWLYH UHOLHInDW OHDVW WKRVH FODLPV WKH+DPDGVjFODLPVLVSUHPLVHGXSRQXQODZIXOVWHHULQJ VHHNLQJWRHQMRLQHQIRUFHPHQWRIWKHE\ODZVnPD\WKHUHIRUH EHPRRW6HH'HWURLW)LUH)LJKWHUV$VVjQ/RFDO1RY %HFDXVH WKH GLVWULFW FRXUW LQ WKH SUHVHQW FDVH GHQLHG WKH 'L[RQ  )G   WK &LU   SHU FXULDP SUHOLPLQDU\ LQMXQFWLRQ H[FOXVLYHO\ RQ WKH UDWLRQDOH WKDW KROGLQJWKDWDUHTXHVWIRULQMXQFWLYHUHOLHIZDVUHQGHUHGPRRW sR\HOODDQGWKH+DPDGVODFNHGVWDQGLQJDQGEHFDXVHLWGLG ZKHUHmWZRILQDOQRQDSSHDODEOHRUGHUVIURPVWDWHFRXUWVLQ QRWDSSO\WKHFRUUHFWODZRIVWDQGLQJXQGHUWKH)DLU+RXVLQJ 0LFKLJDQ HQMRLQ>HG@ RQ LQGHSHQGHQW VWDWH ODZ JURXQGV WKH $FW ZH FRQFOXGH WKDW WKH FRXUW DEXVHG LWV GLVFUHWLRQ LQ VDPHFRQGXFWHQMRLQHGE\WKH&RXUWEHORZRQFRQVWLWXWLRQDO GHQ\LQJ WKH SUHOLPLQDU\ LQMXQFWLRQ RQ WKDW EDVLV  7KH JURXQGVl %XWVHH+DPDGY:RRGFUHVW&RQGR$VVjQ1RV TXHVWLRQ QRZ LV KRZ WR SURFHHG  sR\HOOD DQG WKH +DPDGV  WK&LUsXQH  RUGHU  QRWLQJWKDW DUJXHWKDWWKHUHLVQRQHHGWRUHPDQGIRUIXUWKHUSURFHHGLQJV sR\HOOD DQG WKH +DPDGV mDUH DOVR DSSHDOLQJ WKH GHQLDO RI RQWKHSUHOLPLQDU\LQMXQFWLRQLVVXH,QVWHDGWKH\DVVHUWWKLV LQMXQFWLYH UHOLHI DJDLQVW IXWXUH DFWV RI UHWDOLDWLRQ    :H FRXUWVKRXOGLVVXHWKHLQMXQFWLRQLWVHOI FDQQRW FRQFOXGH WKDW WKH SODLQWLIIVj DSSHDO LQ  LV PRRWl   8QGHU WKHVH FLUFXPVWDQFHV ZH EHOLHYH WKDW WKH 7KHUHDUHWZRUHDVRQVKRZHYHUZK\VXFKDFRXUVHLVQRW SUXGHQWFRXUVHLVWRDOORZWKHGLVWULFWFRXUWWRGHWHUPLQHLQWKH DSSURSULDWHLQWKLVFDVH)LUVWWKHEDODQFLQJRISUHOLPLQDU\ ILUVW LQVWDQFH ZKHWKHU LQMXQFWLYH UHOLHI UHPDLQV DSSURSULDWH LQMXQFWLRQIDFWRUVLVDWDVNHQWUXVWHGWRWKHVRXQGGLVFUHWLRQRI XQGHUWKHFRUUHFWOHJDOVWDQGDUG WKH GLVWULFW FRXUW  0F3KHUVRQ Y 0LFK +LJK 6FK $WKOHWLF $VVjQ ,QF  )G   WK &LU   HQ EDQF % 7KHGLVWULFWFRXUWHUUHGLQJUDQWLQJWKHGHIHQGDQWVj m7KHVHIDFWRUVVLPSO\JXLGHWKHGLVFUHWLRQRIWKHFRXUW PRWLRQIRUVXPPDU\MXGJPHQWRQWKH)DLU+RXVLQJ >7@KHGLVWULFWFRXUWjVZHLJKLQJDQGEDODQFLQJRIWKHHTXLWLHV $FWFODLPVRIsR\HOODDQGWKH+DPDGV RIDSDUWLFXODUFDVHLVRYHUUXOHGRQO\LQWKHUDUHVWRIFDVHVl LQWHUQDO TXRWDWLRQ PDUNV RPLWWHG   :KHQ ZH GR ILQG DQ :HUHYLHZWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQW DEXVHRIGLVFUHWLRQWKLVFRXUWW\SLFDOO\YDFDWHVRUUHYHUVHVWKH GHQRYR6SHUOHY0LFK'HSjWRI&RUU)G LPSURSHUGHQLDORIDSUHOLPLQDU\LQMXQFWLRQDQGUHPDQGVIRU WK&LU 6XPPDU\MXGJPHQWLVSURSHUZKHUHWKHUHLV IXUWKHU FRQVLGHUDWLRQ  (J *  9 /RXQJH ,QF Y 0LFK QRJHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKHPRYLQJSDUW\ /LTXRU&RQWURO&RPPjQ)G WK&LU  LVHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ)HG5&LY3 VHHDOVR$&KDUOHV$ODQ:ULJKWHWDO)HGHUDO3UDFWLFHDQG  F ,QFRQVLGHULQJVXFKDPRWLRQWKHFRXUWFRQVWUXHVDOO 3URFHGXUH†DW GHG  m,QJHQHUDOZKHQWKH UHDVRQDEOHIDFWXDOLQIHUHQFHVLQIDYRURIWKHQRQPRYLQJSDUW\ DSSHOODWHFRXUWGHWHUPLQHVWKDWWKHWULDOFRXUWjVRUGHUGHQ\LQJ 0DWVXVKLWD(OHF,QGXV&RY=HQLWK5DGLR&RUS86 LQMXQFWLYHUHOLHIZDVHUURQHRXVLWZLOOUHYHUVHDQGUHPDQGWKH   7KHFHQWUDOLVVXHLVmZKHWKHUWKHHYLGHQFH FDVHIRUIXUWKHUSURFHHGLQJVEHORZl  SUHVHQWVDVXIILFLHQWGLVDJUHHPHQWWRUHTXLUHVXEPLVVLRQWRD MXU\RUZKHWKHULWLVVRRQHVLGHGWKDWRQHSDUW\PXVWSUHYDLO 7KHVHFRQGUHDVRQIRUXVQRWWREDODQFHWKHSUHOLPLQDU\ DVDPDWWHURIODZl$QGHUVRQY/LEHUW\/REE\,QF86 LQMXQFWLRQIDFWRUVLVEHFDXVHWKHSDUWLHVKDYHLQGLFDWHGLQWKHLU    1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO sR\HOODDQGWKH+DPDGVDUJXHWKDWWKHGLVWULFWFRXUWHUUHGLQ ,W]KDNL)G WK&LU  UHMHFWLQJWKH JUDQWLQJWKHGHIHQGDQWVjPRWLRQIRUVXPPDU\MXGJPHQWRQ FRQWHQWLRQ WKDW PRUH UHFHQW 6XSUHPH &RXUW SUHFHGHQW WKHLUGLVFULPLQDWLRQFODLPV$WRUDODUJXPHQWRQWKHPRWLRQV XQGHUPLQHVWKLVFRQFOXVLRQLQWKHFRQWH[WRIFODLPVXQGHUWKH WKHGLVWULFWFRXUWVWDWHGWKDWLWZDVJUDQWLQJm'HIHQGDQW>Vj@ )DLU+RXVLQJ$FW  PRWLRQ IRU VXPPDU\ MXGJPHQW LQVRIDU DV LW DSSOLHV WR WKH +DPDGV ZKR WKH &RXUW UXOHV DV D PDWWHU RI ODZ KDYH QR & 7KHGLVWULFW FRXUW VKRXOG UHFRQVLGHU WKH PRWLRQ E\ VWDQGLQJ WR PDLQWDLQ WKLV ODZVXLW EDVHG XSRQ WKHLUnDV , sR\HOOD DQG WKH +DPDGV IRU SDUWLDO VXPPDU\ XQGHUVWDQGLWWKHLUUHVLGHQF\DQGVHQWHQFH>VLF@RIWKHRIIHQVH MXGJPHQW LQ UHODWLRQVKLS WR WKH SROLFLHV LQ WKH :RRGFUHVW &RQGRPLQLXPV$VVRFLDWLRQl7KHFRXUWVXEVHTXHQWO\VWDWHG sR\HOOD DQG WKH +DPDGV DOVR DSSHDO WKH GLVWULFW FRXUWjV WKDWLWZDVGLVPLVVLQJsR\HOODjVGLVFULPLQDWLRQFODLPEHFDXVH GHQLDO RI WKHLU PRWLRQ IRU SDUWLDO VXPPDU\ MXGJPHQW DV WR VKH mODFN>HG@ VWDQGLQJ DV DQ µDJJULHYHG SHUVRQj XQGHU WKH OLDELOLW\RQWKHLUGLVFULPLQDWLRQFODLPVm$GLVWULFWFRXUWjV )+$l GHQLDORIVXPPDU\MXGJPHQWLVDQLQWHUORFXWRU\RUGHUWKDWLV QRWRUGLQDULO\DSSHDODEOHl7KRPDVY8QLWHG6WDWHV)G $VH[SODLQHGLQ3DUW,,$DERYHKRZHYHUWKHGLVWULFWFRXUW  WK&LU m:KHUHKRZHYHUDQDSSHDOIURP GLG QRW DSSO\ WKH FRUUHFW ODZ RI VWDQGLQJ XQGHU WKH )DLU DGHQLDORIVXPPDU\MXGJPHQWLVSUHVHQWHGLQWDQGHPZLWKD +RXVLQJ$FW7KLVPHDQVWKDWWKHFRXUWQHYHUUHDFKHGWKH JUDQW RI VXPPDU\ MXGJPHQW WKLV FRXUW KDV MXULVGLFWLRQ WR TXHVWLRQ RI ZKHWKHU JHQXLQH LVVXHV RI PDWHULDO IDFW H[LVW UHYLHZWKHSURSULHW\RIWKHGLVWULFWFRXUWjVGHQLDORIVXPPDU\ UHJDUGLQJWKHVXEVWDQWLYHDOOHJDWLRQVUDLVHGE\sR\HOODDQGWKH MXGJPHQWl*DUQHUY0HPSKLV3ROLFH'HSjW)G +DPDGV  :H ILQG WKDW WKH DSSURSULDWH DFWLRQ XQGHU WKHVH WK&LU 7KLVFRXUWKDVKHOGWKDWLQVXFKDVLWXDWLRQ FLUFXPVWDQFHV LV WR UHYHUVH WKH GLVWULFW FRXUWjV JUDQW RI m>Z@KHUHDPRWLRQIRUVXPPDU\MXGJPHQWLVGHQLHGRQWKH VXPPDU\ MXGJPHQW DQG UHPDQG IRU IXUWKHU FRQVLGHUDWLRQ JURXQGV WKDW WKHUH H[LVWV D JHQXLQH LVVXH RI PDWHULDO IDFW 0F&XUG\Y0RQWJRPHU\&RXQW\)G WK&LU UHYLHZRIWKLVUXOLQJLVXQGHUWKHDEXVHRIGLVFUHWLRQVWDQGDUG   UHYHUVLQJ DQG UHPDQGLQJ IRU IXUWKHU SURFHHGLQJV D :KHUH KRZHYHU D GHQLDO RI VXPPDU\ MXGJPHQW LV EDVHG GLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWZKHUHWKHORZHU VROHO\XSRQOHJDOJURXQGVUHYLHZLVGHQRYRl,G FLWDWLRQ FRXUW KDG HUUHG LQ LWV DSSOLFDWLRQ RI WKH ODZ RI TXDOLILHG RPLWWHG  LPPXQLW\ DQG WKHUHIRUH KDG QRW \HW KDG DQ RSSRUWXQLW\ WR FRQVLGHUZKHWKHUPDWHULDOIDFWVZHUHLQGLVSXWH  7KHGLVWULFWFRXUWGLGQRWVHWIRUWKLWVUHDVRQVIRUGHQ\LQJ WKHPRWLRQE\sR\HOODDQGWKH+DPDGVIRUSDUWLDOVXPPDU\ )LQDOO\WKHGHIHQGDQWVFRQWHQGWKDWWKHDJUHHPHQWZLWKWKH MXGJPHQWEXWSUHVXPDEO\GLGVREHFDXVHLWFRQFOXGHGWKDW 8QLWHG 6WDWHV 'HSDUWPHQW RI sXVWLFH QRWHG LQ 3DUW ,,$ WKH\ODFNHGVWDQGLQJ$VH[SODLQHGDERYHLQ3DUW,,%WKLV DERYH UHQGHUV WKH HQWLUH FDVH PRRW  :H GLVDJUHH PHDQV WKDW ZH GR QRW NQRZ ZKHWKHU JHQXLQH LVVXHV RI m,UUHVSHFWLYHRIWKHLVVXHRILQMXQFWLYHUHOLHI>sR\HOODDQGWKH PDWHULDOIDFWUHPDLQ&RXQVHOIRUsR\HOODDQGWKH+DPDGV +DPDGV@ FRQWLQXH WR VHHN GDPDJHV WR UHGUHVV DOOHJHG SURIHVVHG GXULQJ RUDO DUJXPHQW WKDW WKH SDUWLHV ZHUH LQ YLRODWLRQV RI WKH )DLU +RXVLQJ $FW     *LYHQ >WKHLU@ DJUHHPHQW WKDW QR GLVSXWHG IDFWXDO LVVXHV H[LVW  %XW WKH FRQWLQXHGDFWLYHSXUVXLWRIPRQHWDU\UHOLHIWKLVFDVHUHPDLQV UHFRUGLVQRWVRFOHDURQWKLVLVVXH,QGHHGLQRSSRVLQJWKH µGHILQLWHDQGFRQFUHWHWRXFKLQJWKHOHJDOUHODWLRQVRISDUWLHV PRWLRQIRUSDUWLDOVXPPDU\MXGJPHQWEHORZWKHGHIHQGDQWV KDYLQJ DGYHUVH OHJDO LQWHUHVWVjl  +DYHQV 5HDOW\ &RUS Y DW OHDVW SXUSRUWHG WR UDLVH IDFWXDO GLVSXWHV  :H WKHUHIRUH &ROHPDQ  86     VHH DOVR +DUULV Y 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO UHYHUVHWKHGHQLDORIWKHPRWLRQIRUSDUWLDOVXPPDU\MXGJPHQW 7HUUL +DPDG LQWURGXFHG LQWR HYLGHQFH D OHWWHU GDWHG DQGUHPDQGIRUIXUWKHUFRQVLGHUDWLRQ sXQHIURP:RRGFUHVWjVSURSHUW\PDQDJHUDQGWKH PDMRULW\RILWVERDUGRIGLUHFWRUVWR7HUUL+DPDGjVHPSOR\HU ' 7KH GLVWULFW FRXUW HUUHG LQ JUDQWLQJ MXGJPHQW DV D WKH0RQURH&RXQW\%RDUGRI&RPPLVVLRQHUVFRPSODLQLQJ PDWWHU RI ODZ LQ IDYRU RI WKH GHIHQGDQWV RQ WKH WKDW +DPDG KDG ILOHG WKH LQVWDQW ODZVXLW DQG DVNLQJ WKH UHWDOLDWLRQFODLPVRIsR\HOODDQGWKH+DPDGV &RPPLVVLRQHUV WR mGR ZKDWHYHU \RX FDQ WR HOLPLQDWH WKLV VLWXDWLRQl+DPDGDOVRWHVWLILHGWKDWDOWKRXJKVKHDQGKHU $GLVWULFWFRXUWjVGHFLVLRQWRJUDQWMXGJPHQWDVDPDWWHURI KXVEDQGKDGDWWHQGHG:RRGFUHVW&RQGRPLQLXP$VVRFLDWLRQ ODZLVUHYLHZHGGHQRYR'LDPRQGY+RZG)G PHHWLQJVSULRUWRWKHILOLQJRIWKLVVXLWWKH\ZHUHDVNHGWR  WK &LU    sXGJPHQW DV D PDWWHU RI ODZ LV OHDYH SUHVXPDEO\E\WKHGHIHQGDQWV ZKHQWKH\DWWHQGHGD DSSURSULDWHZKHUHDIWHUDSDUW\KDVEHHQIXOO\KHDUGRQDQ PHHWLQJDIWHUWKHVXLWKDGEHHQILOHG,QDVLPLODUYHLQsR\HOOD LVVXHmWKHUHLVQR OHJDOO\VXIILFLHQWHYLGHQWLDU\EDVLVIRUD WHVWLILHGWKDWDIWHUWKHODZVXLWKDGEHHQILOHGWKHGHIHQGDQWV UHDVRQDEOHMXU\WRILQGIRUWKDWSDUW\RQWKDWLVVXHl)HG5 WRRN DFWLRQ DJDLQVW KHU IRU DOOHJHGO\ YLRODWLQJ VHYHUDO &LY3 D ,QPDNLQJWKLVGHWHUPLQDWLRQWKHFRXUWPXVW FRQGRPLQLXPUXOHVHYHQWKRXJKZKHQsR\HOODKDGFRQGXFWHG YLHZ WKH HYLGHQFH LQ WKH OLJKW PRVW IDYRUDEOH WR WKH KHUVHOIWKHVDPHZD\EHIRUHWKHODZVXLWWKHGHIHQGDQWVKDG QRQPRYDQW'LDPRQG)GDW WDNHQQRDFWLRQ 3XUVXDQW WR  86& †  LW LV mXQODZIXO WR FRHUFH :KHQ YLHZHG LQ WKH OLJKW PRVW IDYRUDEOH WR WKH LQWLPLGDWH WKUHDWHQ RU LQWHUIHUH ZLWK DQ\ SHUVRQ LQ WKH QRQPRYDQWVWKHDERYHHYLGHQFHLVVXIILFLHQWWRUDLVHDMXU\ H[HUFLVH RU HQMR\PHQW RI RU RQ DFFRXQW RI KLV KDYLQJ TXHVWLRQRQWKHUHWDOLDWLRQFODLPV6HH8QLWHG6WDWHVY&LW\ H[HUFLVHGRUHQMR\HGlKLVRUKHUULJKWVXQGHUWKH)DLU+RXVLQJ RI%LUPLQJKDP)G WK&LU  DIILUPLQJ $FW  7KLV VHFWLRQ UHDFKHV mDFWRUV ZKR DUH LQ D SRVLWLRQ WKHGLVWULFWFRXUWjVILQGLQJWKDWWKHFLW\YLRODWHG†RIWKH GLUHFWO\WRGLVUXSWWKHH[HUFLVHRUHQMR\PHQWRIDSURWHFWHG )DLU+RXVLQJ$FWZKHUHWKHm&LW\&RPPLVVLRQWRRNDFWLRQ ULJKWDQGH[HUFLVHWKHLUSRZHUVZLWKDGLVFULPLQDWRU\DQLPXVl WKDWVXSSRUWHGRSSRQHQWVRIWKH%DOGZLQ+RXVHSURSRVDO>IRU 0LFK3URW $GYRFDF\6HUY,QFY%DELQ)G ORZLQFRPH KRXVLQJ@ E\ DJUHHLQJ WR GHIHU D ILQDO YRWH RQ WK&LU  H[WHQGLQJWKH%DOGZLQ+RXVHFRQWUDFWDQGE\DGGLQJVHYHUDO DPHQGPHQWVWRWKHSURSRVHGFRQWUDFWWKDWPDGHLWLPSRVVLEOH sR\HOODDQGWKH+DPDGVDOOHJHGLQWKHLUDPHQGHGFRPSODLQW IRU%DOGZLQ+RXVHWRFRQWLQXHLWVQHJRWLDWLRQVVXFFHVVIXOO\ WKDWWKHGHIHQGDQWVKDGXQODZIXOO\UHWDOLDWHGDJDLQVWWKHPIRU ZLWK>WKHVWDWHILQDQFLQJDJHQF\@l 6DQ3HGUR+RWHO&RY WKH ILOLQJ RI WKHLU LQLWLDO FRPSODLQW  $IWHU sR\HOOD DQG WKH &LW\ RI /RV $QJHOHV  )G   WK &LU  +DPDGV SUHVHQWHG WKHLU UHWDOLDWLRQ FODLP WR WKH MXU\ WKH KROGLQJWKDWDJHQXLQHLVVXHRIPDWHULDOIDFWH[LVWHGRQWKH GLVWULFWFRXUWJUDQWHGDPRWLRQE\WKHGHIHQGDQWVIRUMXGJPHQW SODLQWLIIjVUHWDOLDWLRQFODLPZKHUHWKHSODLQWLIIKDGLQWURGXFHG DVDPDWWHURIODZ7KHFRXUWFRQFOXGHGWKDWWKHUHZDVmQR HYLGHQFHWKDWVHYHUDOZHHNVDIWHUSXEOLFO\VWDWLQJmWKDWWKH VXIILFLHQWHYLGHQFHXSRQZKLFKDUHDVRQDEOHMXU\FRXOGILQG &LW\KDGDFWHGLOOHJDOO\E\UHIXVLQJWRIXQGKRXVLQJIRUWKH ILUVWRIDOOWKDWWKHUHZDVDQ\LOOHJDOUHWDOLDWRU\DFWLRQZKLFK PHQWDOO\LOODQGWKDWKLVIDPLO\ZRXOGVXH>@WKH&LW\RI FDQ EH DWWULEXWHG WR WKH GHIHQGDQWV KHUHl  ,W IXUWKHU /RV$QJHOHV%XLOGLQJDQG6DIHW\&RPPLVVLRQHUDQGVHYHUDO GHWHUPLQHGWKDWWKHUHZDVmQRHYLGHQFHRIOHJDOO\FRJQL]DEOH PHPEHUVRIWKH&LW\jVµ6OXPKRXVH7DVN)RUFHjFRQGXFWHGDQ LQMXULHVl  :H EHOLHYH WKDW WKH UHFRUG FOHDUO\ UHIXWHV WKHVH LQVSHFWLRQlRIWKHSODLQWLIIjVKRWHOFLWHGKLPIRUYLRODWLRQV UXOLQJVE\WKHGLVWULFWFRXUW DQG JDYH KLP RQO\ D VKRUW WLPH WR PDNH UHSDLUV  IRRWQRWH 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO RPLWWHG 7KHGLVVHQWUHDFKHVWKHFRQWUDU\FRQFOXVLRQRQO\E\ LWVGLVFUHWLRQ%HJDODY31&%DQN2KLR1DWjO$VVjQ UHYLHZLQJWKHHYLGHQFHDQGGUDZLQJLQIHUHQFHVLQWKHOLJKW )G WK&LU m$GLVWULFWFRXUWDEXVHVLWV PRVWIDYRUDEOHWRWKHPRYDQWV7KLVVWUDWHJ\LVLPSHUPLVVLEOH GLVFUHWLRQ ZKHQ LW DSSOLHV WKH LQFRUUHFW OHJDO VWDQGDUG LQFRQVLGHULQJZKHWKHUDSDUW\LVHQWLWOHGWRMXGJPHQWDVD PLVDSSOLHVWKHFRUUHFWOHJDOVWDQGDUGRUUHOLHVXSRQFOHDUO\ PDWWHU RI ODZ XQGHU 5XOH   'LDPRQG  )G DW  HUURQHRXVILQGLQJVRIIDFWl6FKHQNY&LW\RI+XGVRQ KROGLQJWKDWWKHHYLGHQFHPXVWEHYLHZHGmLQWKHOLJKWPRVW )G WK&LU  IDYRUDEOHWRWKHQRQPRYDQWl  HPSKDVLVDGGHG  7KH GLVWULFW FRXUW LQ WKLV FDVH JDYH WKUHH UHDVRQV IRU LWV 7KH GHIHQGDQWV KRZHYHU XUJH XV WR DIILUP WKH GLVWULFW UHIXVDOWRDOORZWKHDPHQGPHQW)LUVWLWREVHUYHGWKDWmWKH FRXUWjVMXGJPHQWRQWKHDOWHUQDWLYHUDWLRQDOHWKDWsR\HOODDQG WLPLQJRI3ODLQWLIIVjUHTXHVWLQWKLVFDVHLVVLJQLILFDQWDVLW WKH +DPDGV GLG QRW SURGXFH DQ\ mHYLGHQFH RI OHJDOO\ ZDVPDGHDIWHUGLVFRYHU\KDVFORVHGDIWHUWKHGHDGOLQHIRU FRJQL]DEOH LQMXULHVl  %XW LI WKH MXU\ GHWHUPLQHV WKDW WKH GLVSRVLWLYH PRWLRQV KDV SDVVHG DQG RQO\ D PRQWK EHIRUH GHIHQGDQWVYLRODWHGWKH)DLU+RXVLQJ$FWWKHQsR\HOODDQGWKH WULDOl  %XW WKH UHFRUG GRHV QRW UHIOHFW WKDW DQ\ VFKHGXOLQJ +DPDGV QHHG WR SURYH RQO\ WKDW WKH\ mVXIIHUHG D QRQ RUGHUZDVHYHUHQWHUHG7KHIDFWXDOILQGLQJVWKDWGLVFRYHU\ TXDQWLILDEOHLQMXU\DWWKHKDQGVRI>WKH@GHIHQGDQWV>WR@MXVWLI\ KDGFORVHGDQGWKDWWKHGHDGOLQHIRUGLVSRVLWLYHPRWLRQVKDG >DQ@DZDUGRIQRPLQDOGDPDJHVl+HLJKWV&RPW\&RQJY SDVVHGZHUHWKHUHIRUHFOHDUO\HUURQHRXV +LOOWRS 5HDOW\ ,QF  )G   WK &LU   %HFDXVH sR\HOOD DQG WKH +DPDGV LQWURGXFHG VXIILFLHQW 6HFRQGWKHGLVWULFWFRXUWQRWHGWKDWm3ODLQWLII>V@FRXOGKDYH HYLGHQFH WR FUHDWH D MXU\ TXHVWLRQ DV WR ZKHWKHU WKH DGGHGWKHDPHQGPHQWVZKHQWKH\ILOHGWKH )LUVW$PHQGHG GHIHQGDQWVYLRODWHG†WKHSODLQWLIIVjUHWDOLDWLRQFODLPV &RPSODLQWWKHPDLQSXUSRVHRIZKLFKZDVWRDGGDUHWDOLDWLRQ VKRXOG KDYH EHHQ VXEPLWWHG WR WKH MXU\ ZKLFK FRXOG KDYH FODLPl%XWsR\HOODDQGWKH+DPDGVDUJXHGERWKEHORZDQG DZDUGHGQRPLQDOGDPDJHVDWDPLQLPXPXSRQDILQGLQJLQ RQDSSHDOWKDWWKHSXUSRVHRIWKHVHFRQGDPHQGPHQWZDVWR WKHLUIDYRU LQFOXGHDFWLRQVXQGHUWDNHQE\WKHGHIHQGDQWVDIWHUWKHILUVW DPHQGHGFRPSODLQWKDGEHHQILOHG:HWKHUHIRUHFRQFOXGH ( 7KH GLVWULFW FRXUW VKRXOG UHFRQVLGHU WKH PRWLRQ RI WKDWWKLVUDWLRQDOHIRUGHQ\LQJWKHSODLQWLIIVjPRWLRQWRILOHD sR\HOODDQGWKH+DPDGVWRDPHQGWKHLUFRPSODLQW VHFRQGDPHQGHGFRPSODLQWLVXQSHUVXDVLYH 2Q$XJXVWsR\HOODDQGWKH+DPDGVVRXJKWOHDYH 7KH GLVWULFW FRXUWjV ILQDO FRQVLGHUDWLRQ ZDV WKDW WKH WRILOHDVHFRQGDPHQGPHQWWRWKHLUFRPSODLQW7KHSULQFLSDO DOOHJDWLRQVFRQWDLQHGLQWKHVHFRQGDPHQGPHQWZHUHYDJXH DOOHJDWLRQ RI WKH SURSRVHG VHFRQG DPHQGPHQW ZDV WKDW DQG ZRXOG WKHUHIRUH XQGXO\ SUHMXGLFH WKH GHIHQGDQWV m>R@WKHU UHWDOLDWRU\ DFWV HQJDJHG LQ E\ 'HIHQGDQWV DQG $OWKRXJKWKLVLVWKHW\SHRIGLVFUHWLRQDU\MXGJPHQWWKDWFRXOG GLUHFWHG DW 3ODLQWLIIV DIWHU WKH ILOLQJ RI WKLV ODZVXLW DOVR MXVWLI\DUHIXVDOWRDOORZOHDYHWRDPHQG)RPDQY'DYLV FRQVWLWXWHFRHUFLRQl/HDYHWRILOHWKLVVHFRQGDPHQGHG 86  ZHKDYHQRZD\WRGHWHUPLQHWKHH[WHQW FRPSODLQWZDVGHQLHGE\WKHGLVWULFWFRXUW WR ZKLFK WKH GLVWULFW FRXUWjV UXOLQJ ZDV LQIOXHQFHG E\ WKH FOHDUO\HUURQHRXVIDFWXDOILQGLQJVGLVFXVVHGDERYH%HFDXVH 5XOH D RIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUHSURYLGHV WKHGLVWULFWFRXUWEDVHGLWVGHFLVLRQLQSDUWRQWKHVHHUURQHRXV WKDWOHDYHWRDPHQGDFRPSODLQWmVKDOOEHIUHHO\JLYHQZKHQ IDFWXDOILQGLQJVZHUHYHUVHWKHFRXUWjVGHQLDORIsR\HOODjVDQG MXVWLFHVRUHTXLUHVl7KLVFRXUWZLOOUHYHUVHWKHGHQLDORID WKH+DPDGVjPRWLRQIRUOHDYHWRDPHQGWKHLUFRPSODLQWDQG PRWLRQIRUOHDYHWRDPHQGRQO\LIWKHGLVWULFWFRXUWKDVDEXVHG UHPDQGWKHPDWWHUIRUIXUWKHUFRQVLGHUDWLRQ 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO ) (YLGHQWLDU\LVVXHVDWWULDODUHHQWUXVWHGWRWKHVRXQG UHTXLUHUHFXVDOXQGHU86&†:HWKHUHIRUHHYDOXDWH GLVFUHWLRQRIWKHGLVWULFWFRXUW WKHLUUHTXHVWE\FRQVLGHULQJWKHIROORZLQJWKUHHIDFWRUV 'XULQJWKHWULDORIWKHLUUHWDOLDWLRQFODLPVsR\HOODDQGWKH   ZKHWKHU WKH RULJLQDO MXGJH ZRXOG UHDVRQDEO\ EH +DPDGVVRXJKWRQVHYHUDORFFDVLRQVWRH[DPLQHZLWQHVVHVRU H[SHFWHGXSRQUHPDQGWRKDYHVXEVWDQWLDOGLIILFXOW\LQ LQWURGXFH HYLGHQFH FRQFHUQLQJ WKH GHIHQGDQWVj ILQDQFLDO SXWWLQJ RXW RI KLV RU KHU PLQG SUHYLRXVO\>@H[SUHVVHG UHVRXUFHVDQGDVVHWVEXWWKHGLVWULFWFRXUWUHIXVHGWRSHUPLW YLHZVRUILQGLQJVGHWHUPLQHGWREHHUURQHRXVRUEDVHGRQ WKHP WR GR VR  sR\HOOD DQG WKH +DPDGV DVN WKLV FRXUW WR HYLGHQFHWKDWPXVWEHUHMHFWHG  ZKHWKHUUHDVVLJQPHQW LQVWUXFW WKH GLVWULFW FRXUW WR DOORZ VXFK H[DPLQDWLRQ DQG LVDGYLVDEOHWRSUHVHUYHWKHDSSHDUDQFH RI MXVWLFHDQG HYLGHQFH   ZKHWKHU UHDVVLJQPHQW ZRXOG HQWDLO ZDVWH DQG GXSOLFDWLRQRXWRISURSRUWLRQWRDQ\JDLQLQSUHVHUYLQJ (YLGHQWLDU\GHFLVLRQVDUHHQWUXVWHGWRWKHVRXQGGLVFUHWLRQ WKHDSSHDUDQFHRIIDLUQHVV RIWKHWULDOFRXUW*HQ(OHF&RYsRLQHU86  :HDUHWKHUHIRUHUHOXFWDQWWRPLFURPDQDJHKRZDQG %URZQY&URZOH\)G WK&LU  ZKHQFHUWDLQW\SHVRIHYLGHQFHVKRXOGEHLQWURGXFHGDWWULDO %HFDXVHsR\HOODDQGWKH+DPDGVLPSO\WKDWWKHGLVWULFWFRXUW sR\HOODDQGWKH+DPDGVDUJXHWKDWWKHFODLPVDQGGHIHQVHV ZDV ODERULQJ XQGHU DQ HUURQHRXV XQGHUVWDQGLQJ RI WKH LQ WKLV FDVH DUH XQFRPSOLFDWHG VR WKDW D QHZ MXGJH FRXOG VWDQGDUGIRUSXQLWLYHGDPDJHVXQGHUWKH)DLU+RXVLQJ$FW IDPLOLDUL]HKLPVHOIRUKHUVHOIZLWKWKHFDVHTXLFNO\DQGHDVLO\ KRZHYHUZHVLPSO\QRWHWKDWWKHSURSHUVWDQGDUGmLVZKHWKHU 7KLVDUJXPHQWKRZHYHULVUHIXWHGQRWRQO\E\WKHH[WHQVLYH WKHGHIHQGDQWVDFWHGZLWKPDOLFHRUUHFNOHVVLQGLIIHUHQFHWKDW MRLQW DSSHQGL[ DQG KXQGUHGV RI SDJHV RI EULHIV ILOHG RQ WKHLUDFWLRQVPLJKWYLRODWHDIHGHUDOVWDWXWHRIZKLFKWKH\ZHUH DSSHDOEXWDOVRE\WKHSODLQWLIIVjRZQVWDWHPHQWLQVXSSRUWRI DZDUHl3UHIHUUHG3URSV,QFY,QGLDQ5LYHU(VWDWHV,QF RUDODUJXPHQWWKDWm>W@KLVDSSHDOLQYROYHVDIXOO\>@GHYHORSHG  )G   WK &LU  LQWHUQDO TXRWDWLRQ PDUNV DQGFRPSOH[IDFWXDOUHFRUGl&RPPHQWVPDGHE\WKHGLVWULFW RPLWWHG  DGRSWLQJWKLVVWDQGDUGIRUSXQLWLYHGDPDJHVLQ)DLU FRXUWLQWKLVFDVHPRUHRYHUGRQRWXQGHUPLQHWKHDSSHDUDQFH +RXVLQJ$FWFDVHV FHUWGHQLHG6&W   RIMXVWLFH,QVXSSRUWRIWKHLUDUJXPHQWWKDWWKHGLVWULFWFRXUW ZDVRUDSSHDUHGWREHVZD\HGE\KLVSHUVRQDOYLHZVUDWKHU * 7KLV FDVH VKRXOG QRW EH UHDVVLJQHG WR D GLIIHUHQW WKDQ E\ WKH ODZ sR\HOOD DQG WKH +DPDGV FLWH VHYHUDO MXGJHXSRQUHPDQG FRPPHQWVWKDWWKHGLVWULFWMXGJHPDGHGXULQJWKHFRXUVHRI WKHSURFHHGLQJV sR\HOODjVDQGWKH+DPDGVjILQDOUHTXHVWLVWKDWZHUHDVVLJQ WKHLUFDVHWRDGLIIHUHQWMXGJHXSRQUHPDQG$OWKRXJKZH $VDQH[DPSOHRIWKHMXGJHjVDOOHJHGSUHGLOHFWLRQDJDLQVW KDYHWKHDXWKRULW\SXUVXDQWWR86&†WRUHPDQGWKH WKHLUFODLPVWKH\TXRWHKLVUHPDUNWKDWLQFRQWUDVWWRUDFH FDVH WR D GLIIHUHQW GLVWULFW MXGJH mWKLV LV DQ H[WUDRUGLQDU\ GLVFULPLQDWLRQmZHjUHQRWLRQDOO\LQDGLIIHUHQWDUHDZKHQ\RX SRZHUDQGVKRXOGUDUHO\EHLQYRNHG6XFKUHDVVLJQPHQWV EHJLQWRWDONDERXWlGLVFULPLQDWLRQRQWKHEDVLVRIIDPLOLDO VKRXOGEHPDGHLQIUHTXHQWO\DQGZLWKWKHJUHDWHVWUHOXFWDQFHl VWDWXV  %XW WKH GLVWULFW MXGJH FRPSOHWHG WKH UHPDUN E\ $UPFR,QFY8QLWHG6WHHOZRUNHUVRI$P)G UHFRJQL]LQJWKDWm&RQJUHVVKDVFRPPDQGHGWKDW>D@QGLI WK &LU   DOWHUDWLRQ LQ RULJLQDO   sR\HOOD DQG WKH WKH\ KDYH ZH EHWWHU HQIRUFH WKH ODZl  sR\HOOD DQG WKH +DPDGVKDYHQRWVXEPLWWHGSURRIRISHUVRQDOELDVWKDWZRXOG +DPDGV DOVR TXRWH WKH GLVWULFW FRXUWjV FRPPHQW D IHZ PRPHQWVODWHUWKDWm>P@D\EHWKDWjVWKHODZEXW,jPVD\LQJ 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO ,GRQjWNQRZWKDWVKRXOGEHWKHODZl7KHYHU\QH[WVHQWHQFH BBBBBBBBBBBBBBB XWWHUHG E\ WKH GLVWULFW MXGJH KRZHYHU ZDV m%XW ,jP YHU\ PXFKFRQYLQFHGDERXWWKHIDFWWKDW,GRQjWPDNHWKHODZVVR ',66(17 ,ZHDUHWU\LQJWRILQGRXWZKDWODZVDUHWKHUHDQGZKDWODZV BBBBBBBBBBBBBBB , PXVW HQIRUFHl  7KXV ZKHQ FRQVLGHUHG LQ FRQWH[W WKHVH FRPPHQWV GR QRW GHPRQVWUDWH WKDW WKH GLVWULFW MXGJH ZDV '$9,' $ 1(/621 &LUFXLW sXGJH GLVVHQWLQJ  ,I WKH SDUWLDORUWKDWKHFRXOGQRWSXWDVLGHKLVSHUVRQDOYLHZV SODLQWLIIV VXIIHUHG DQ\ SDOSDEOH LQMXU\ LQ ZKDW WKH GLVWULFW FRXUWDFFXUDWHO\FKDUDFWHUL]HGDVWKHLUmQHLJKERUKRRGILJKWl 7KHGLVWULFWFRXUWFOHDUO\HUUHGLQLWVDSSOLFDWLRQRIWKHODZ LWGRHVQRWVHHPWRPHWKDWWKHLQMXU\ZDVWKHUHVXOWRIDQ\ RIVWDQGLQJXQGHUWKH)DLU+RXVLQJ$FWWRWKHIDFWVRIWKLV YLRODWLRQRIWKH)DLU+RXVLQJ$FW2QWKHUHFRUGEHIRUHXV, FDVH  1HLWKHU WKH FRPPHQWV QRU WKH FRQGXFW RI WKH MXGJH EHOLHYH WKDW WKH GHIHQGDQWV ZHUH HQWLWOHG WR VXPPDU\ KRZHYHUHVWDEOLVKHVWKDWKHZRXOGQRWEHDEOHWRGHFLGHIDLUO\ MXGJPHQWRQWKHmIDPLOLDOVWDWXVlGLVFULPLQDWLRQFODLPVMXVW WKLVIDFWXDOO\FRPSOLFDWHGFDVHXSRQUHPDQG:HWKHUHIRUH DV,EHOLHYHWKH\ZHUHHQWLWOHGWRMXGJPHQWDVDPDWWHURIODZ GHFOLQHWRUHDVVLJQWKLVFDVHWRDGLIIHUHQWGLVWULFWMXGJH RQWKHUHWDOLDWLRQFODLPV$FFRUGLQJO\DQGEHFDXVH,DPQRW SHUVXDGHG WKDW WKH GLVWULFW FRXUW DEXVHG LWV GLVFUHWLRQ LQ ,,,&21&/86,21 GHQ\LQJOHDYHWRDPHQGWKHFRPSODLQW,ZRXOGDIILUPWKH GLVWULFWFRXUWjVGLVSRVLWLRQLQDOOUHVSHFWV )RUDOORIWKHUHDVRQVVHWIRUWKDERYHZH5(9(56(WKH MXGJPHQW RI WKH GLVWULFW FRXUW DQG 5(0$1' WKH FDVH IRU , IXUWKHUSURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ ,WPD\EHKHOSIXOWRWDNHDEULHIORRNDWWKHIDFWXDOFRQWH[W LQZKLFKWKLVODZVXLWDURVH7KHRSHQLQJVDOYRRIWKHEDWWOH VHHPV  WR KDYH EHHQ ILUHG LQ 6HSWHPEHU RI  ZKHQ SODLQWLII 7HUUL +DPDG VHQW D OHWWHU WR PHPEHUV RI WKH FRQGRPLQLXP DVVRFLDWLRQ GHWDLOLQJ D VHULHV RI FRPSODLQWV DJDLQVWWKHDVVRFLDWLRQjVERDUGRIGLUHFWRUV 6LJQLQJ KHU OHWWHU DV m2ZQHU  DQG 'LUHFWRU 0RQURH &RXQW\&RPPLVVLRQRQ$JLQJl0UV+DPDGFRPSODLQHGWKDW WKHERDUGKDGDWWHPSWHGWRSUHYHQWDQHOGHUO\FRRZQHU DQ \HDUROG ZLGRZ DFFRUGLQJ WR VXEVHTXHQW QHZVSDSHU DFFRXQWV IURPDUUDQJLQJIRUEXVVHUYLFHDWWKHGRRURIKHU EXLOGLQJ  0UV +DPDGjV OHWWHU VDLG WKDW WKH ERDUG KDG mWKUHDWHQHG/DNH(ULH7UDQVLWZLWKDODZVXLWLIWKH\HQWHUWKH GULYHWRSLFNXSWKHFRRZQHUl 7KLVOLWLJDWLRQWKUHDWZDVWKHSURGXFWRIDERDUGPHHWLQJ KHOGZLWKRXWWKHNQRZOHGJHRIDVVRFLDWLRQPHPEHUVDQGLQ YLRODWLRQ RI WKH DVVRFLDWLRQjV E\ODZV DFFRUGLQJ WR 0UV 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO +DPDG'HFLVLRQVE\WKHERDUGWRVSHQGPRQH\RQFHUWDLQ FRQGRVl  6KH ODWHU ZURWH WR D PHPEHU RI WKH 0LFKLJDQ SK\VLFDO LPSURYHPHQWV ZHUH DOVR VDLG WR KDYH EHHQ WDNHQ OHJLVODWXUH IRU KHOS mUHJDUGLQJ WKH EXV VLWXDWLRQ DW ZLWKRXW WKH NQRZOHGJH DQG DSSURYDO RI WKH DVVRFLDWLRQjV :RRGFUHVWl PHPEHUV  )LQDOO\ 0UV +DPDG ZURWH mDJDLQ ZLWKRXW RXU NQRZOHGJHSUHSDUDWLRQVDUHEHLQJPDGHWRWXUQWKLVFRPSOH[ ,Q $SULO RI  WKH SUHVLGHQW RI WKH ERDUG RI WKH LQWRDFRPSOH[l$OWKRXJKWKHUXOHOLPLWLQJIDPLOLHVZLWK FRQGRPLQLXPDVVRFLDWLRQZURWHWRWKHFRXQW\FRPPLVVLRQHUV FKLOGUHQ WR ILUVWIORRU XQLWV KDG EHHQ LQ HIIHFW IRU RYHU D WRSURWHVWWKHDFWLRQVRIWKHFRPPLVVLRQRQDJLQJZLWKUHVSHFW GHFDGH0UV+DPDGPDGHQRPHQWLRQRIWKHILUVWIORRUUXOH WRWKHEXVLQJLVVXH7KHOHWWHUSRVHGWKHTXHVWLRQm:K\GLG LQKHUOHWWHU WKH 0RQURH &RXQW\ &RPPLVVLRQ RQ $JLQJ FKDPSLRQ WKH FDXVHDQGFRQFHUQRIRQHUHVLGHQWZKLOHLJQRULQJWKHFRQFHUQV 0UV +DPDG DOVR VHQW D OHWWHU WR WKH HGLWRU RI D ORFDO RIWKHUHPDLQLQJVHQLRUUHVLGHQWV"l QHZVSDSHUGHVFULELQJWKHERDUGjVUHIXVDOWRDOORZEXVHVRQ :RRGFUHVWjVGULYHZD\DVmGLVJXVWLQJlmGLVUHVSHFWIXOlDQG ,Q0D\RISODLQWLII.D\ODsR\HOODGLVWULEXWHGDOHWWHU mLOOHJDOl7KHQHZVSDSHUGHFOLQHGWRSXEOLVKWKHOHWWHUEXW WR RWKHU :RRGFUHVW RZQHUV mWR PDNH VXUH DOO RZQHUV DUH UDQDIHDWXUHDUWLFOHRQWKHmEDWWOHRYHUEXVHVl0UV+DPDG DZDUH RI WKH UHFHQW FRQGXFW >RI@ ERDUG PHPEHUV >DQG WKH ODWHUWHVWLILHGWKDWVKHKDGVRXJKWSXEOLFLW\RIWKHEXVLQJLVVXH SURSHUW\PDQDJHU@l7KHOHWWHUEHJDQZLWKDUHIHUHQFHWR LQ DQ HIIRUW WR mH[SRVH WKH ERDUG DQG HPEDUUDVV WKHP WKH mUHIHUUDO IHHl WKDW 0UV +DPDG KDG UHSRUWHG WR WKH SXEOLFO\l 0LFKLJDQ 'HSDUWPHQW RI &RQVXPHU DQG ,QGXVWU\ 6HUYLFHV DQG WKH OHWWHU ZHQW RQ WR UHFRPPHQG WKDW RWKHU RZQHUV ,Q 2FWREHU 0UV +DPDG ILOHG D FRPSODLQW ZLWK WKH FRQWDFWWKHLUWLWOHFRPSDQLHVWRGHWHUPLQHZKHWKHUVLPLODUIHHV 0LFKLJDQ 'HSDUWPHQW RI &RQVXPHU DQG ,QGXVWU\ 6HUYLFHV KDGEHHQSDLGDWWKHLUFORVLQJV0VsR\HOODWKHQFRPSODLQHG DOOHJLQJWKDW:RRGFUHVWjVSURSHUW\PDQDJHUKDGUHFHLYHGDQ WKDW VKH ZDV WUHDWHG UXGHO\ ZKHQ VKH DVNHG WKH SURSHUW\ LOOHJDO mUHIHUUDO IHHl IURP D UHDO HVWDWH EURNHU  7KH PDQDJHUDERXWWKHE\ODZOLPLWLQJFKLOGUHQWRILUVWIORRUXQLWV 'HSDUWPHQWHYHQWXDOO\FRQFOXGHGWKDWWKHDOOHJDWLRQFRXOGQRW 0VsR\HOODjVOHWWHUVXJJHVWVWKDWVKHGLGQRWLQWHQGDWWKDW EHVXEVWDQWLDWHG WLPHWRVHHNSHUPLVVLRQWRKDYHKHUQHSKHZOLYHZLWKKHU +HURQO\UHDVRQIRUZDQWLQJWRVHHWKHE\ODZKHUOHWWHUVD\V 7KHQH[WPRQWKLQKHUFDSDFLW\DVGLUHFWRURIWKHFRXQW\ ZDV WR PDNH D FRS\ WR VKRZ WR KHU QHSKHZ mVR KH ZRXOG FRPPLVVLRQ RQ DJLQJ 0UV +DPDG FRPSODLQHG WR WKH NQRZ LW ZDVQjW WKDW VKH GLG QRW ZDQW KLP EXW VKH KDG WR 0LFKLJDQ&LYLO5LJKWV&RPPLVVLRQRIVHYHUDOm)DLU+RXVLQJ KRQRUWKHUXOHVl ,VVXHVl DW :RRGFUHVW  7KHVH LQFOXGHG m>L@QWLPLGDWLRQ DQG KDUDVVPHQWlRIWKHHOGHUO\ZLGRZZKRVRXJKWEXVVHUYLFHDW 7KHERDUGDQGSURSHUW\PDQDJHUGLVWULEXWHGDOHWWHURIWKHLU KHUGRRUDQGWKHKROGLQJRIERDUGPHHWLQJVZLWKRXWQRWLFHWR RZQUHEXWWLQJWKHSRLQWVUDLVHGLQ0VsR\HOODjVOHWWHU7KH WKHUHVLGHQWV0UV+DPDGDOVRFRPSODLQHGIRUWKHILUVWWLPH ERDUGDOVRFLUFXODWHGDSRUWLRQRIWKHPLQXWHVIURPDERDUG WKDW m>I@DPLOLHV ZLWK FKLOGUHQ DUH OLPLWHG WR ILUVW IORRU PHHWLQJRI0D\ZKHUH0VsR\HOODKDGDVNHGERDUG PHPEHUVWRVLJQDGRFXPHQWVWDWLQJWKDWKHUQHSKHZFRXOG QRWPRYHLQZLWKKHU$FFRUGLQJWRWKHPLQXWHVWKHPHHWLQJ  ,Q D OHQJWK\ IROORZXS DUWLFOH RQ WKH EXV GLVSXWH WKH QHZVSDSHU LQFOXGHG m>P@XFK KHDWHG GLVFXVVLRQ    FRQFHUQLQJ >0V TXRWHG 0UV +DPDG DV VD\LQJ WKDW WKH ERDUGjV DFWLRQ m LV ZURQJ DQG LW sR\HOODjV@OHWWHUDQGLWVFRQWHQWVWKDWLQFOXGHGOLDEOH>VLF@DQG QHHGV WR EH VWRSSHG :HjYH HYHQ FDOOHG IRU D SROLFH HVFRUW IRU WKH EXV LI VODQGHURXVUHPDUNVl,WLVLPSRUWDQWWRQRWHWKDWWKHmKHDWHG ZH QHHG RQHl 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO GLVFXVVLRQlGLGQRWFRQFHUQWKHILUVWIORRUUXOHRUWKHERDUGjV ZLWKLQWKHLUFRPPXQLW\GHSHQGVRQmWKHSUHVHQFHRIDEVHQFH HQIRUFHPHQWRILW RIDµGLVWLQFWDQGSDOSDEOHLQMXU\jl*ODGVWRQH86DW  TXRWLQJ:DUWK86DW 7KH&RXUWQRWHGWKDW 3ULRU WR WKH ILOLQJ RI WKHLU ODZVXLW WR VXPPDUL]H 0UV +DPDGDQG0VsR\HOODZHUHERWKHPEURLOHGLQHPRWLRQDOO\ m>D@µQHLJKERUKRRGjZKRVHUDFLDOFRPSRVLWLRQDOOHJHGO\ FKDUJHGGLVSXWHVZLWKWKHERDUG0UV+DPDGjVFRPSODLQWV LV EHLQJ PDQLSXODWHG PD\ EH VR H[WHQVLYH LQ DUHD VR DJDLQVWWKHERDUGUHODWHGSULPDULO\WRWKHEXVLQJLVVXHVKH KHDYLO\RUHYHQVRVSDUVHO\SRSXODWHGRUVRODFNLQJLQ UDLVHG WKH LVVXH RI GLVFULPLQDWLRQ DJDLQVW IDPLOLHV ZLWK VKDUHG VRFLDO DQG FRPPHUFLDO LQWHUFRXUVH WKDW WKHUH FKLOGUHQRQO\LQFLGHQWDOO\0VsR\HOODjVFRPSODLQWVIRFXVHG ZRXOGEHQRDFWXDOLQMXU\WRDSDUWLFXODUUHVLGHQWl,G RQKHUWUHDWPHQWE\WKHSURSHUW\PDQDJHUDQGERDUGPHPEHUV QRWRQKHULQDELOLW\WRKDYHKHUQHSKHZOLYHZLWKKHU,WZDV 7KLV REVHUYDWLRQ FDQQRW EH VTXDUHG ZLWK WKH QRWLRQ WKDW DJDLQVWWKLVEDFNJURXQGWKDWWKH+DPDGVDQG0VsR\HOODILOHG LQMXU\LQIDFWLVQHFHVVDULO\VXIIHUHGE\HYHU\UHVLGHQWRID WKHLUODZVXLWXQGHUWKH+RXVLQJ$FWLQsXQHRI FRPPXQLW\ZKHUHGLVFULPLQDWLRQLVWDNLQJSODFH ,, *ODGVWRQHDQG7UDIILFDQWHLQYROYHGUDFLDOGLVFULPLQDWLRQ PRUHRYHU DQGWKH6XSUHPH&RXUWH[SUHVVO\UHOLHGRQmWKH 7KH6XSUHPH&RXUWKDVPDGHLWFOHDUWKDWVWDQGLQJWRVXH LPSRUWDQFHRIWKHµEHQHILWVIURPLQWHUUDFLDODVVRFLDWLRQVjl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mLQMXU\LQIDFWlLHKHPXVWKDYHVXIIHUHGmµDGLVWLQFWDQG EHOLHYH SDOSDEOHLQMXU\WRKLPVHOIjWKDWLVOLNHO\WREHUHGUHVVHGLI WKHUHTXHVWHGUHOLHILVJUDQWHGl*ODGVWRQH86DW *LYHQWKHVHFRQVLGHUDWLRQVLWLVDSSURSULDWHWRWDNHDFORVH TXRWLQJ:DUWKY6HOGLQ86   ORRN DW WKH SDUWLFXODU LQMXULHV WKH SODLQWLIIV FODLP WR KDYH VXIIHUHG  ,Q GRLQJ VR ZH QHHG WR GHWHUPLQH ZKHWKHU WKH ,DPQRWSHUVXDGHGWKDWLQMXU\LQIDFWQHFHVVDULO\UHVXOWHG FODLPVDUHVXSSRUWHGE\IDFWVDFWXDOO\DOOHJHGLQWKHFRPSODLQW IURPWKHSODLQWLIIVjKDYLQJUHVLGHGLQDFRQGRPLQLXPFRPSOH[ RUUHYHDOHGLQGLVFRYHU\ ZLWK D SUHVXPDEO\ LOOHJDO ILUVWIORRU UXOH  *ODGVWRQH DQG 7UDIILFDQWHGRHVWDEOLVKWKDWDUHVLGHQWRIDFRPPXQLW\QHHG )LUVW WKH SODLQWLIIV DUJXH KHUH WKDW WKH FKDOOHQJHG UXOH QRWEHDWDUJHWRILOOHJDOGLVFULPLQDWLRQLQRUGHUWREHLQMXUHG GHSULYHGWKHPRImWKHEHQHILWVRIOLYLQJLQDQHQYLURQPHQW E\LW6HH*ODGVWRQH86DW7UDIILFDQWH LQWHJUDWHG ZLWK FKLOGUHQl  ,W LV WUXH WKDW KDUP RI WKLV W\SH 86DW$V,UHDGWKHVHFDVHVKRZHYHUWKH\GRQRW PLJKWVDWLVI\WKHLQMXU\LQIDFWUHTXLUHPHQW1RZKHUHLQWKHLU HVWDEOLVKWKDWHYHU\GLVFULPLQDWRU\SROLF\QHFHVVDULO\LQMXUHV DPHQGHGFRPSODLQWKRZHYHUGRWKHSODLQWLIIVDOOHJHWKDWWKH\ HYHU\UHVLGHQWRIWKHFRPPXQLW\ZKHUHWKHSROLF\H[LVWV VXIIHUHG VXFK KDUP  7KH\ DOOHJH RQO\ mHFRQRPLF ORVVHV KXPLOLDWLRQHPEDUUDVVPHQWPHQWDODQJXLVKLQFRQYHQLHQFH )RURQHWKLQJWKH6XSUHPH&RXUWLQ*ODGVWRQHH[SUHVVO\ DQJHUDQGWKHGHSULYDWLRQRIFLYLOULJKWVl/LNHZLVH0UDQG UHFRJQL]HGWKDWUHVLGHQWVjVWDQGLQJWRSURWHVWGLVFULPLQDWLRQ 0UV+DPDGQHYHUWHVWLILHGWKDWWKH\ZHUHGHSULYHGRIVRFLDO 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO UHODWLRQVEXVLQHVVDGYDQWDJHVRURWKHUEHQHILWVDWWULEXWDEOH GRHVQRWVXSSRUWWKDWVSHFXODWLRQ0UV+DPDGWHVWLILHGWKDW WR OLYLQJ LQ D FRPPXQLW\ ZLWK PRUH FKLOGUHQ  2QO\ 0V WKH SRWHQWLDO EX\HUV ZKR KDG YLHZHG WKH FRQGRPLQLXP sR\HOODKDVVWDWHGLQDQDIILGDYLWWKDW:RRGFUHVWjVE\ODZV GHFLGHGQRWWRSXUFKDVHLWIRUUHDVRQVKDYLQJQRWKLQJWRGR mSUHYHQWHG>KHU@IURPHQMR\LQJWKHVRFLDOEHQHILWVRIOLYLQJLQ ZLWKFKLOGUHQmWKH\KDYHSHWVlm>W@KH\GRQjWZDQWDILUVW D FRPPXQLW\ WKDW LQFOXGHV IDPLOLHVl  7KLV XQDGRUQHG DQG IORRUXQLWlmWKH\jUHORRNLQJIRUOHVVVSDFHlRUWKH\mZHUHQjW FRQFOXVRU\ VWDWHPHQW SUHVHQWV D FORVH FDOO EXW , DP QRW UHDG\WREX\\HWl SHUVXDGHGWKDWDQ\RIWKHSODLQWLIIVKDVDOOHJHGVXIILFLHQWIDFWV WRVXSSRUWWKHFODLPRILQMXU\ )RXUWK 0V sR\HOOD FODLPV WKDW VKH ZDV GHSULYHG RI WKH RSSRUWXQLW\WROLYHZLWKKHUQHSKHZ,WLVWUXHWKDWWKH%RDUG 6HFRQGWKHSODLQWLIIVFRQWHQGWKDWWKH\VXIIHUHGHPRWLRQDO LQLWLDOO\GHQLHGSHUPLVVLRQIRU0VsR\HOODjVQHSKHZWROLYH GLVWUHVVDQGLQGLJQLW\EHFDXVHRIWKHFKDOOHQJHGUXOH7KHUH ZLWK KHU DQG DW KHU UHTXHVW VLJQHG D GRFXPHQW WR WKDW LVWREHVXUHHYLGHQFHWKDWWKHSODLQWLIIVIHOWXQZHOFRPHDQG HIIHFW %XW0VsR\HOODGLGQRWKDYHFXVWRG\RIKHUQHSKHZ HYHQ KDUDVVHG GXULQJ WKHLU UHVLGHQF\ DW :RRGFUHVW  7KH DW WKDW WLPH  :KHQ KH ZDV ILQDOO\ SODFHG LQ KHU FDUH WKH SODLQWLIIVjGLVWUHVVLVFOHDUO\DWWULEXWDEOHWRWKHLUGLVSXWHVZLWK QHSKHZLQIDFWFDPHWROLYHZLWK0VsR\HOODDW:RRGFUHVW :RRGFUHVWjV ERDUG KRZHYHU DQG QRW WR HQIRUFHPHQW RI 7KHUHLVQRHYLGHQFHWKDWKHFRXOGKDYHOLYHGZLWKKLVDXQW :RRGFUHVWjVILUVWIORRUUXOH7KH+DPDGVOLYHGDW:RRGFUHVW VRRQHUKDGLWQRWEHHQIRUWKHERDUGjVGHQLDORISHUPLVVLRQ IRU RYHU WZR \HDUV DQG KDG D FKLOG IRU DERXW  PRQWKV ,Q VXP WKH UHFRUG GRHV QRW GHPRQVWUDWH WKDW WKH SODLQWLIIV EHIRUHWKHLUUHODWLRQVKLSZLWKWKHERDUGEHFDPHVWUDLQHGDVD VXIIHUHG DQ\ mGLVWLQFW DQG SDOSDEOHl LQMXU\ FDXVHG E\ UHVXOW RI 0UV +DPDGjV DGYRFDF\ RQ WKH EXVLQJ LVVXH HQIRUFHPHQWRIWKHFKDOOHQJHGUXOH,ZRXOGDIILUPWKHGLVWULFW 6LPLODUO\LWZDVQRWHQIRUFHPHQWRIWKHILUVWIORRUUXOHWKDW FRXUWjVVXPPDU\MXGJPHQWUXOLQJVRQWKDWEDVLV FDXVHG0VsR\HOODjVGLVWUHVVKHUGLVFRPILWXUHVWHPPHGIURP KHUOHWWHUZULWLQJEDWWOHZLWKWKHERDUGDQGIURPmJRVVLSDQG )RU WKH VDPH UHDVRQ , ZRXOG DIILUP WKH GLVWULFW FRXUWjV VODQGHUlDERXWKHUQHSKHZ$QGQRQHRIWKHSODLQWLIIVRIIHUHG GHQLDORIWKHSODLQWLIIVjPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQ DQ\HYLGHQFHRImVWLJPDWLFlKDUPIURPOLYLQJLQDFRPPXQLW\ $QGWKHUHDUHRWKHUUHDVRQVZK\WKHSODLQWLIIVDUHQRWHQWLWOHG ZKHUHFKLOGUHQZHUHZHOFRPHRQO\LQJURXQGIORRUXQLWV WRLQMXQFWLYHUHOLHI,QDVHWWOHPHQWDJUHHPHQWZLWKWKH8QLWHG 6WDWHV:RRGFUHVWKDVDJUHHGWRUHVFLQGWKHFKDOOHQJHGUXOH 7KLUG WKH +DPDGV PDLQWDLQ WKDW WKH\ KDYH VXIIHUHG 7KHSODLQWLIIVjFODLPIRULQMXQFWLYHUHOLHILVWKXVPRRWLQVRIDU LQFRQYHQLHQFH IURP OLYLQJ LQ D JURXQGIORRU FRQGRPLQLXP DV LW UHODWHV WR mIDPLOLDO VWDWXVl GLVFULPLQDWLRQ  )RU WKH DQG WKDW :RRGFUHVWjV UXOH KDV PDGH VHOOLQJ WKHLU UHDVRQVVHWIRUWK EHORZ,EHOLHYHWKDWWKHGHIHQGDQWVZHUH FRQGRPLQLXP PRUH GLIILFXOW  %XW WKH +DPDGV FKRVH WKH JURXQGIORRUFRQGRPLQLXPDIWHUEHLQJVKRZQWZRDYDLODEOH WKLUGIORRUXQLWVZKLFKWKH\ZHUHIUHHWRSXUFKDVH$QGWKH  UXOH GRHV QRW SUHYHQW WKH +DPDGV IURP VHOOLQJ WKHLU 7KH PDMRULW\ RSLQLRQ VWDWHV WKDW 0V sR\HOOD ZDV LQMXUHG LQVRIDU DV FRQGRPLQLXPWRDQ\RQHWKH\FKRRVHLQFOXGLQJDIDPLO\ZLWK VKH ZDV OLPLWHG LQ KHU DELOLW\ WR VHOO KHU WKLUGIORRU FRQGRPLQLXP 7KDW PLJKW ZHOO EH WKH FDVH EXW 0V sR\HOOD GLG QRW DOOHJH VXFK DQ LQMXU\ RU FKLOGUHQ7KH+DPDGVVSHFXODWHWKDW:RRGFUHVWjVUXOHKDV RIIHU IDFWV WR SURYH LW DIIHFWHG WKH PDUNHW IRU WKHLU FRQGRPLQLXP EXW WKH UHFRUG  ,W VHHPV WR PH WKDW WKH FDVH RI *RUVNL Y 7UR\  )G  WK &LU   LV IDFWXDOO\ LQDSSRVLWH 8QOLNH WKH SODLQWLIIV LQ *RUVNL 0V sR\HOOD ZDV QRW HYLFWHG EHFDXVH RI KHU GHVLUH WR KDYH KHU QHSKHZ OLYH ZLWK  0U +DPDG WHVWLILHG WKDW WKH EDE\ ZDV ERUQ LQ $XJXVW RI  KHU 1RV +DPDGHWDOY:RRGFUHVW   +DPDGHWDOY:RRGFUHVW 1RV &RQGR$VVjQHWDO &RQGR$VVjQHWDO HQWLWOHG WR MXGJPHQW DV D PDWWHU RI ODZ RQ WKH UHWDOLDWLRQ EHHQFRQFHUQHGZLWKJHQXLQHYLRODWLRQV,GRQRWWKLQNWKH\ LVVXHWKDWEHLQJVR,GRQRWEHOLHYHWKDWWKHSODLQWLIIVKDYH FDQUHDVRQDEO\EHFRQVWUXHGDVUHWDOLDWRU\ DQ\ULJKWWRDQLQMXQFWLRQDJDLQVWUHWDOLDWLRQ ,9 ,,, 7KH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ LQ P\ $VWRWKHGLVWULFWFRXUWjVJUDQWLQJRIMXGJPHQWDVDPDWWHU RSLQLRQ E\ GHQ\LQJ WKH SODLQWLIIVj PRWLRQ WR DPHQG WKHLU RIODZRQWKHSODLQWLIIVjUHWDOLDWLRQFODLPWKHKLVWRU\RIHYHQWV FRPSODLQW7KHDPHQGPHQWZRXOGKDYHDGGHGJHQHUDOL]HG GHVFULEHGDERYHVXJJHVWVWKDWWKHGHIHQGDQWVWRRNQRDFWLRQ DOOHJDWLRQVWKDWWKHGHIHQGDQWVHQJDJHGLQm>R@WKHUUHWDOLDWRU\ DJDLQVWWKHSODLQWLIIVmRQDFFRXQWRIlWKHSODLQWLIIVjH[HUFLVH DFWVlDIWHUWKHILOLQJRIWKHSODLQWLIIVjODZVXLW%\EURDGHQLQJ RIWKHLUULJKWWRVXHXQGHUWKH+RXVLQJ$FW6HH86& WKH VFRSH RI WKH FRPSODLQW ZLWKRXW JLYLQJ WKH GHIHQGDQWV † QRWLFHRIWKHVSHFLILFDFWVRIZKLFKWKH\ZHUHDFFXVHGWKH DPHQGPHQW PLJKW ZHOO KDYH SUHMXGLFHG WKH GHIHQGDQWV 7KHmQHLJKERUKRRGILJKWlKDGEHHQLQSURJUHVVIRUPRQWKV XQIDLUO\$QGWKHIDFWWKDWWKHPRWLRQWRDPHQGZDVPDGH DIWHU DOO ZKHQ WKH GHIHQGDQWV o H[HUFLVLQJ WKHLU ULJKW WR ODWHLQWKHSUHWULDOSURFHVVLQFUHDVHGWKDWGDQJHU SHWLWLRQ IRU UHGUHVV RI JULHYDQFHV o  ZURWH WR WKH FRXQW\ FRPPLVVLRQHUV DERXW WKH ODZVXLW UHFHQWO\ ILOHG E\ WKH 7KH PDMRULW\ RSLQLRQ IDXOWV WKH GLVWULFW FRXUW IRU LWV m'LUHFWRURI0RQURH&RXQW\&RPPLVVLRQRQ$JLQJl0UV FRPPHQW WKDW WKH PRWLRQ ZDV PDGH mDIWHU GLVFRYHU\ KDV +DPDG  7KH GHIHQGDQWV FRPSODLQHG WKDW WKH ODZVXLW ZDV FORVHGDIWHUWKHGHDGOLQHIRUGLVSRVLWLYHPRWLRQVKDVSDVVHG FRQWUDU\WRWKHSXUSRVHRIWKHFRPPLVVLRQRQDJLQJDQGDVNHG DQGRQO\DPRQWKEHIRUHWULDOl1RWZLWKVWDQGLQJWKHDEVHQFH WKH FRXQW\ FRPPLVVLRQHUV WR mGR ZKDWHYHU >WKH\@ FDQ WR RISHUWLQHQWGRFNHWHQWULHV,GRQRWYLHZWKDW FRPPHQWDV HOLPLQDWHWKHVLWXDWLRQl7KHUHZDVDOVRHYLGHQFHDWWULDOWKDW VXJJHVWLYHRIDQDEXVHRIGLVFUHWLRQ,GRQRWNQRZWKDWWKH RQHRIWKHGHIHQGDQWVKDGVSRNHQZLWKWKHFKDLUPDQRIWKH GLVWULFWFRXUWKDGQRWVHWLQIRUPDOGHDGOLQHVIRUGLVFRYHU\DQG ERDUGRIFRXQW\FRPPLVVLRQHUVDERXWWKHODZVXLW GLVSRVLWLYHPRWLRQVDQGWKHJLVWRIWKHFRXUWjVVWDWHPHQWo WKDWLWZDVWRRODWHLQWKHJDPHWRDPHQGWKHFRPSODLQWoZDV 7KHVHFRQWDFWVZLWKZKDWPD\EHFRQVLGHUHG0UV+DPDGjV UHDVRQDEOH HPSOR\HUKDUGO\FRQVWLWXWHGLOOHJDOUHWDOLDWLRQIRUDQH[HUFLVH RIULJKWVXQGHUWKH+RXVLQJ$FW7KHFRQWDFWVKDGQRWKLQJWR 9 GRZLWKIDLUKRXVLQJULJKWVDV,VHHLWDQGHYHU\WKLQJWRGR ZLWKWKHERDUGjVSHUFHSWLRQWKDW0UV+DPDGZDVVXEMHFWLQJ ,ZRXOGDIILUPWKHGLVWULFWFRXUWjVUXOLQJVDFURVVWKHERDUG WKH FRQGRPLQLXP DVVRFLDWLRQ WR XQIDLU KDUDVVPHQW DQG 0\FROOHDJXHVRQWKHSDQHOKDYLQJVHHQWKHPDWWHUGLIIHUHQWO\ H[SHQVH  ,Q DQ\ HYHQW WKH GHIHQGDQWV GLG QR PRUH WKDQ ,UHVSHFWIXOO\GLVVHQW LQIRUPWKHFRXQW\FRPPLVVLRQHUVRIWKHODZVXLWH[SUHVVWKHLU GLVSOHDVXUHDQGDVNIRUKHOS:KDWNLQGRISROLW\LVLWWKDW ZRXOGEUDQGWKLVDVDFWLRQDEOHUHWDOLDWLRQ" $V WR 0V sR\HOOD WKHUH ZDV HYLGHQFH DW WULDO WKDW WKH GHIHQGDQWVSRVWHGWZRRUWKUHHQRWHVRQKHUGRRUZLWKUHJDUG WRYLRODWLRQVRI:RRGFUHVWjVE\ODZV7KHVHQRWHVZHUHQRWRI D WKUHDWHQLQJ RU KDUDVVLQJ QDWXUH DQG WKH\ DSSHDU WR KDYH

Document Info

Docket Number: 02-1479

Filed Date: 4/22/2003

Precedential Status: Precedential

Modified Date: 9/22/2015