Parry v. Pritchard ( 2000 )

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 &+5,6723+(5 s 3$55 KH@NQHZ>KH@KDGWRVWD\DWWKHIDFLOLW\ls$DW   $IWHU WKH DOFRKRO WHVW 3ODLQWLII ZDV HVFRUWHG WR WKH ZDLWLQJDUHDQHDUWKHUHFHSWLRQGHVN $WDSSUR[LPDWHO\SP&DUWHUZHQWLQWRWKHUHFHSWLRQ DUHDDQGREVHUYHG3ODLQWLIIUHHQWHULQJ$XVWLQWRZQIURPWKH RXWHUGRRUVRIWKHHPHUJHQF\URRP6KHKDGDFRQYHUVDWLRQ ZLWK3ODLQWLIILQZKLFKVKHH[SODLQHGWR3ODLQWLIIWKDWKHFRXOG QRWJLYHDVHFRQGVSHFLPHQEHFDXVHKHKDGOHIWWKHIDFLOLW\ $OWKRXJK&DUWHUjVQRWHVLQGLFDWHWZRVSHFLPHQVZHUHWDNHQ DQG WKH VHFRQG ZDV REVHUYHG E\ D GRFWRU WKH QRWHV DOVR LQGLFDWHWKDW3ODLQWLIIOHIWEHIRUHWKHVHFRQGVSHFLPHQFRXOG EHWDNHQ&DUWHUH[SODLQHGWKHGLVFUHSDQF\E\VWDWLQJWKDWWKH LQLWLDO VWDWHPHQW ZDV ZULWWHQ GRZQ EDVHG RQ 3ODLQWLIIj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jVZLIH$IWHU H[WHQVLRQRIWKHVWD\WRDOOGHIHQGDQWVLQWKHFDVH WKHFDOOSXUVXDQWWR3ODLQWLIIjVHPSOR\HUjVLQVWUXFWLRQV&DUWHU ZDVGLUHFWHGWRVHQGWKHILUVWVSHFLPHQIRUWHVWLQJ3ODLQWLIIjV $ SHWLWLRQ ILOHG IRU EDQNUXSWF\ RSHUDWHV DV D VWD\ DQG LV SKRQHFDOODQG3ULWFKDUGjVLQVWUXFWLRQDUHUHIOHFWHGLQ&DUWHUjV DSSOLFDEOHWRWKHFRQWLQXDWLRQRIDMXGLFLDOSURFHHGLQJDJDLQVW QRWHV3ODLQWLIIWKHQOHIW$XVWLQWRZQ WKHGHEWRU6HH86&†D7KHDXWRPDWLFVWD\ SURYLVLRQ RI WKH %DQNUXSWF\ &RGH  86& † D $W DSSUR[LPDWHO\  SP 3ODLQWLII UHWXUQHG WR VWD\VDQmDFWLRQRUSURFHHGLQJDJDLQVWWKHGHEWRUWKDWZDVRU $XVWLQWRZQ DJDLQ ZLWK WKH LQWHQWLRQ RI JLYLQJ D VHFRQG FRXOGKDYHEHHQFRPPHQFHGEHIRUHWKHFRPPHQFHPHQWRIWKH VSHFLPHQ&DUWHULQVWUXFWHGKLPWRZDLWZKLOHVKHGHWHUPLQHG FDVHXQGHUWKLVWLWOHRUWRUHFRYHUDFODLPDJDLQVWWKHGHEWRU ZKHWKHU KH FRXOG JLYH D VHFRQG VSHFLPHQ  6KH FRQWDFWHG WKDWDURVHEHIRUHWKHFRPPHQFHPHQWRIWKHFDVHXQGHUWKLV /LQGD&DPSEHOORI&HQWUDO7UDQVSRUW&DPSEHOOLQIRUPHG WLWOHl &DUWHUWKDWEHFDXVHKHKDGOHIWWKHIDFLOLW\DVHFRQGVSHFLPHQ FRXOG QRW EH WDNHQ EHFDXVH XQGHU WKH UHJXODWLRQV OHDYLQJ ([WHQGLQJDVWD\WRQRQEDQNUXSWFRGHIHQGDQWVLVMXVWLILHG FRQVWLWXWHG D mUHIXVDO WR WHVWl  &DPSEHOO WKHQ DGYLVHG KHU RQO\LQmXQXVXDOFLUFXPVWDQFHVl,QUH(DJOH3LFKHU,QGXV VXSHUYLVRU 5DQGDOO )LHOGV WKDW WKHUH ZDV D SUREOHP ZLWK ,QF)GWK&LU,Q3DWWRQY%HDUGHQ 3ODLQWLIIjVGUXJWHVW,QDVXEVHTXHQWFRQIHUHQFHFDOOEHWZHHQ )GWK&LUWKLV&RXUWUHFRJQL]HGWKDW &DUWHUDQG)LHOGVDQGRU&DPSEHOO&DPSEHOOUHLWHUDWHGWKDW DEVHQWXQXVXDOFLUFXPVWDQFHVWKHVWD\mGRHVQRWH[WHQGWR DVHFRQGVDPSOHFRXOGQRWEHWDNHQ7KH\LQVWUXFWHG&DUWHU VHSDUDWHOHJDOHQWLWLHVVXFKDVFRUSRUDWHDIILOLDWHVSDUWQHUVLQ WRVHQGWKHRULJLQDOVSHFLPHQDQGH[SODLQHGWR3ODLQWLIIWKDW GHEWRUSDUWQHUVKLSVRUWRFRGHIHQGDQWVLQSHQGLQJOLWLJDWLRQl KHVKRXOGFRQWDFW'HIHQGDQW3ULWFKDUGIRUIXUWKHULQVWUXFWLRQV ,QWKLVFDVH3ODLQWLIIKDVIDLOHGWRGHPRQVWUDWHWKDWmXQXVXDO FLUFXPVWDQFHVlZDUUDQWWKHH[WHQVLRQRIWKHDXWRPDWLFVWD\ 2Q $XJXVW   0HG([SUHVV UHFHLYHG DQG WHVWHG EH\RQG 'HIHQGDQWV 3ULWFKDUG DQG $3,& WR WKH UHPDLQLQJ 3ODLQWLIIjVXULQHVSHFLPHQIRUGUXJV7KHVSHFLPHQZDVDOVR VROYHQW FRGHIHQGDQWV  $OWKRXJK 3ODLQWLII DOOHJHV WKDW D WHVWHGIRUVSHFLILFJUDYLW\DQGFUHDWLQHOHYHO7KHVSHFLPHQ FRQWUDFWXDODJHQF\UHODWLRQVKLSH[LVWHGEHWZHHQ'HIHQGDQWV WHVWHG QHJDWLYH IRU GUXJV EXW KDG D VSHFLILF JUDYLW\ DQG KH FLWHV QR DXWKRULW\ IRU WKH SURSRVLWLRQ WKDW DQ DJHQF\ FUHDWLQH OHYHO EHORZ WKDW UHTXLUHG E\ WKH UHJXODWLRQV UHODWLRQVKLSZDUUDQWVWKHH[WHQVLRQRIDQDXWRPDWLFVWD\,Q $OWKRXJKWKLVGLGQRWPHDQWKDWDGULYHUZDVGLVTXDOLILHGLW OLJKWRIWKLV&RXUWjVGHFLVLRQLQ3DWWRQDQG3ODLQWLIIjVIDLOXUH GLGPHDQWKDWDGULYHUFRXOGEHUHTXLUHGWRJLYHDQmREVHUYHGl WR VKRZ WKDW XQXVXDO FLUFXPVWDQFHV H[LVW WR ZDUUDQW WKH VSHFLPHQLQDVXEVHTXHQWWHVW7KHUHVXOWVZHUHUHSRUWHGWR H[WHQVLRQ RI D VWD\ ZH ILQG WKDW 3ODLQWLIIjV FRQWHQWLRQ LV 'HIHQGDQW'UXJ)UHHWKH0HGLFDO5HYLHZ2IILFHUm052l ZLWKRXW PHULW DQG WKDW WKH GLVWULFW FRXUW SURSHUO\ JUDQWHG IRUUHYLHZ VXPPDU\MXGJPHQWWR'HIHQGDQWVGHVSLWHWKHDXWRPDWLFVWD\ LPSRVHGDVWR3ODLQWLIIjVFDVHDJDLQVW'HIHQGDQWV3ULWFKDUG 'UXJ)UHHUHFHLYHGWKHUHVXOWVRQ$XJXVWRU'U DQG$3,& sDPHV+DEHUDQHPSOR\HHRI'UXJ)UHHZDVWKHSK\VLFLDQ ZKRDFWHGDVWKH052IRU3ODLQWLIIjVFDVH+HWHVWLILHGDWKLV GHSRVLWLRQ WKDW QHJDWLYH UHVXOWV RUGLQDULO\ UHFHLYH DQ  3DUU\Y3ULWFKDUGHWDO 1R 1R 3DUU\Y3ULWFKDUGHWDO  DGPLQLVWUDWLYHUHYLHZ1HJDWLYHUHVXOWVDUHDOVRQRWGLVFXVVHG ,QWKHLQVWDQWFDVH3ODLQWLIISURFHHGVXQGHU WKHFDXVHRI ZLWKWKHHPSOR\HU'U+DEHURQO\UHFDOOHGGLVFXVVLQJWKH DFWLRQWKDWDOORZVRQHWRUHFRYHUIRUWKHSXEOLFGLVFORVXUHRI UHVXOWVZLWK'DYLG(DGHVWKHSUHVLGHQWRI'UXJ)UHH SULYDWHIDFWV,QRUGHUWRUHFRYHUXQGHUWKLVWKHRU\DSODLQWLII PXVWGHPRQVWUDWHWKDWWKHUHZDVmDFOHDUO\SULYDWHIDFW (DGHV WHVWLILHG DW GHSRVLWLRQ WKDW WKH PRWRU FDUULHU LV SXEOLFGLVFORVXUHRIWKHSULYDWHIDFWDQGDVKRZLQJ QRWLILHGRIDORZVSHFLILFJUDYLW\RUFUHDWLQHOHYHOHYHQLIWKH WKDW WKH PDWWHU PDGH SXEOLF LV RQH ZKLFK ZRXOG EH KLJKO\ WHVWVDUHQHJDWLYH7KHUHSRUWLQJLVQHFHVVDU\WRSHUPLWWKH RIIHQVLYH DQG REMHFWLRQDEOH WR D UHDVRQDEOH SHUVRQl HPSOR\HUWRUHTXLUHDQREVHUYHGVSHFLPHQLQVXEVHTXHQWWHVWV *UHHQZRRGY7DIW6WHWWLQLXV +ROOLVWHU1(G (DGHVDOVRWHVWLILHGWKDWKHKDVGLVFXVVHGQHJDWLYHUHVXOWVZLWK  2KLR &W $SS   m3XEOLFLW\l PHDQV HPSOR\HUVZKHQSUREOHPVZLWKWKHFROOHFWLRQSURFHVVZHUH mFRPPXQLFDWLQJ WKH PDWWHU WR WKH SXEOLF DW ODUJH RU WR VR EURXJKWWRKLVDWWHQWLRQ PDQ\ SHUVRQV WKDW WKH PDWWHU PXVW EH UHJDUGHG DV VXEVWDQWLDOO\FHUWDLQWREHFRPHRQHRISXEOLFNQRZOHGJHDV )LHOGV DQG &DPSEHOO FRQWDFWHG (DGHV ZLWKLQ GD\V RI RSSRVHGWRµSXEOLFDWLRQj>DVXVHGLQGHIDPDWLRQFDVHVDQG@ 3ODLQWLIIjVWHVW7KH\ZHUHFRQFHUQHGDERXWZKHWKHULWZDV PHDQLQJ DQ\ FRPPXQLFDWLRQ E\ WKH GHIHQGDQW WR D WKLUG SURSHU WR VHQG D mKRWl VSHFLPHQ RXW IRU WHVWLQJ  (DGHV SHUVRQl6HWDY5HDGLQJ5RFN,QF1(G H[SODLQHGWKDWDOOVSHFLPHQVUHJDUGOHVVRIWHPSHUDWXUHPXVW 2KLR&W$SSFLWDWLRQDQGTXRWDWLRQRPLWWHG EHWHVWHGXQGHUIHGHUDOUHJXODWLRQV7KH\DOVRLQTXLUHGDVWR WKHUDPLILFDWLRQRIWKHORZVSHFLILFJUDYLW\DQGFUHDWLQHOHYHO 2QDSSHDO3ODLQWLIIPHUHO\DUJXHVWKDWDUHDVRQDEOHSHUVRQ (DGHV IXUWKHU H[SODLQHG WKDW WKLV GLG QRW UHVXOW LQ ZRXOGREMHFWWREHLQJDFFXVHGRIDGXOWHUDWLQJKLVVSHFLPHQ GLVTXDOLILFDWLRQEXWWKHHPSOR\HUKDGWKHRSWLRQRIUHTXLULQJ UHIXVLQJWRWHVWRUEHLQJGLVTXDOLILHGIRUDOOHJHGO\IDLOLQJWR DQREVHUYHGVSHFLPHQLQVXEVHTXHQWWHVWV(DGHVLQVWUXFWHG IROORZSURFHGXUHV3ODLQWLIIDOVRFRQWHQGVWKDWDUHDVRQDEOH KLVHPSOR\HHVWRORRNLQWRWKHPDWWHUIXUWKHUWKHHPSOR\HHV SHUVRQ ZRXOG REMHFW WR VSHFLILF JUDYLW\ DQG FUHDWLQH OHYHOV LQ WXUQ FRQWDFWHG $XVWLQWRZQ DQG 0HG([SUHVV IRU WKHLU EHLQJPDGHSXEOLF$VLGHIURP3ODLQWLIIjVIDLOXUHWRFLWHDQ\ YHUVLRQ RI HYHQWV  %HWZHHQ $XJXVW  DQG   WKH DXWKRULW\LQVXSSRUWRIKLVFODLPKHKDVIDLOHGWRGHPRQVWUDWH SDUWLHV ID[HG LQIRUPDWLRQ WR HDFK RWKHU VXUURXQGLQJ WKH WKDW WKH FLUFXPVWDQFHV VXUURXQGLQJ KLV GUXJ WHVW ZHUH FLUFXPVWDQFHVRI3ODLQWLIIjVGUXJWHVW FRPPXQLFDWHGmWRWKHSXEOLFDWODUJHRUWRVRPDQ\SHUVRQV WKDWWKHPDWWHUPXVWEHUHJDUGHGDVVXEVWDQWLDOO\FHUWDLQWR &DUWHUWHVWLILHGWKDWDQ\VXEVHTXHQWLQTXLULHVDERXW3ODLQWLII EHFRPHRQHRISXEOLFNQRZOHGJHl,GDW$VDUHVXOW ZHUHUHIHUUHGWR)LHOGV2WKHUWKDQWKHVHUHIHUUDOVVKHGLGQRW 3ODLQWLII FDQQRW VXVWDLQ D FDXVH RI DFWLRQ IRU LQYDVLRQ RI KDYHDQ\VXEVWDQWLYHGLVFXVVLRQVZLWKDQ\RQHDERXW3ODLQWLII SULYDF\  $FFRUGLQJO\ WKH GLVWULFW FRXUW SURSHUO\ JUDQWHG )LHOGV DQG &DPSEHOO WHVWLILHG WKDW WKH\ GLG QRW WDON DERXW VXPPDU\MXGJPHQW 3ODLQWLIIWRRWKHUV 7KH'LVWULFW&RXUWjV,PSRVLWLRQRIDQ$XWRPDWLF 3ODLQWLII QR ORQJHU GULYHV IRU 3ULWFKDUG RU 0RKDZN 6WD\DVWR'HIHQGDQWV3ULWFKDUGDQG$3,& 3ODLQWLIIZDVWHUPLQDWHGEHFDXVHKHDOOHJHGO\WRRN'HIHQGDQW 3ULWFKDUGjV WUDFWRU DFURVV VWDWH OLQHV ZLWKRXW SHUPLVVLRQ )LQDOO\3ODLQWLIIFRQWHQGVWKDWWKHGLVWULFWFRXUWHUUHGE\ :KHQRWKHUWUXFNRZQHUVDQGRSHUDWRUVPDGHLQTXLULHV)LHOGV JUDQWLQJ VXPPDU\ MXGJPHQW WR 'HIHQGDQWV EHFDXVH WKH DQG &DPSEHOO UHVSRQGHG E\ SURYLGLQJ RQO\ JHQHUDO DXWRPDWLFVWD\SURYLVLRQVRIWKH%DQNUXSWF\&RGHVXVSHQGHG LQIRUPDWLRQDERXW3ODLQWLIILQFOXGLQJKLVHPSOR\PHQWGDWHV 3ODLQWLIIjV ODZVXLW DJDLQVW 'HIHQGDQWV 3ULWFKDUG DQG $3,& ZKHWKHUWKHUHZDVDSRVLWLYHUHVXOWLQSUHYLRXVGUXJWHVWVDQG 3ODLQWLIIDUJXHVWKDWXQXVXDOFLUFXPVWDQFHVUHTXLUHWKDWWKH WKHODVWGDWHRIKLVWHVW  3DUU\Y3ULWFKDUGHWDO 1R 1R 3DUU\Y3ULWFKDUGHWDO  WR SURVSHFWLYH HPSOR\HUV  +RZHYHU WKH HYLGHQFH LQ WKH 3ODLQWLIIFRPPHQFHGWKLVDFWLRQRQsDQXDU\2Q UHFRUGGHPRQVWUDWHVRWKHUZLVH7KHSURVSHFWLYHHPSOR\HUV $SULO0RKDZNILOHGDPRWLRQWRGLVPLVVSXUVXDQWWR HVVHQWLDOO\VWDWHGWKDWWKH\FRXOGQRWKLUH3ODLQWLIIEHFDXVHRI )HGHUDO5XOHRI&LYLO3URFHGXUHE2Q$XJXVW KLV SUREOHPV ZLWK KLV GUXJ WHVW  1RQH RI WKH SURVSHFWLYH 0RKDZNFRQYHUWHGLWVPRWLRQWRGLVPLVVLQWRDPRWLRQIRU HPSOR\HUVVWDWHGWKDWWKH\ZHUHHYHUWROGWKDW3ODLQWLIIKDG VXPPDU\MXGJPHQWSXUVXDQWWR)HGHUDO5XOH&LYLO3URFHGXUH WHVWHGSRVLWLYHIRUGUXJV/LNHZLVH3ODLQWLIIFDQQRWSRLQWWR   2Q sXQH   0HG([SUHVV ILOHG D PRWLRQ IRU DQ\IDFWVGHPRQVWUDWLQJWKDWDQ\SURVSHFWLYHHPSOR\HUVWDWHG VXPPDU\MXGJPHQW'UXJ)UHHDQG$XVWLQWRZQILOHGPRWLRQV WKDW3ODLQWLIIWHVWHGSRVLWLYHIRUGUXJVRURWKHUZLVHPDGHRU IRUVXPPDU\MXGJPHQWRQsXO\DQGUHVSHFWLYHO\ ZHUHWROGIDOVHVWDWHPHQWVUHJDUGLQJ3ODLQWLIIj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j PRWLRQV IRU VXPPDU\ 2KLRODZUHFRJQL]HVDFDXVHRIDFWLRQIRUWKHLQYDVLRQRI MXGJPHQW7KHGLVWULFWFRXUWJUDQWHGVXPPDU\MXGJPHQWWRDOO SULYDF\ LQ FDVHV ZKHUH WKHUH LV  WKH XQZDUUDQWHG 'HIHQGDQWV DQG VWD\HG WKH SURFHHGLQJV DV WR 'HIHQGDQWV DSSURSULDWLRQ RU H[SORLWDWLRQ RI RQHjV SHUVRQDOLW\  WKH 3ULWFKDUGDQG$3,&SXUVXDQWWRWKHDXWRPDWLFVWD\SURYLVLRQV SXEOLFL]LQJRIRQHjVSULYDWHDIIDLUVZLWKZKLFKWKHSXEOLFKDV RIWKH%DQNUXSWF\&RGHRQ0DUFK3ODLQWLIIILOHGD QROHJLWLPDWHFRQFHUQRUWKHZURQJIXOLQWUXVLRQLQWRRQHjV PRWLRQIRUUHFRQVLGHUDWLRQRQ$SULO7KHGLVWULFW SULYDWH DFWLYLWLHV LQ VXFK D PDQQHU DV WR RXWUDJH RU FDXVH FRXUWGHQLHG3ODLQWLIIjVPRWLRQIRUUHFRQVLGHUDWLRQRQ$SULO PHQWDO VXIIHULQJ VKDPH RU KXPLOLDWLRQ WR D SHUVRQ RI 7KHUHDIWHU3ODLQWLIIILOHGDPRWLRQIRUOHDYHWRILOH RUGLQDU\VHQVLELOLWLHV6HHsDFNVRQY&LW\RI&ROXPEXV DVHFRQGDPHQGHGFRPSODLQWRQsXQH7KHGLVWULFW )GWK&LU FRXUWGHQLHG3ODLQWLIIjVPRWLRQRQsXQH2QsXO\ 3ODLQWLIIILOHGDPRWLRQWRFHUWLI\WKHLQWHUORFXWRU\JUDQW RIVXPPDU\MXGJPHQWIRUDSSHDOWRWKLV&RXUW  'HIHQGDQW 0HG([SUHVV ZDV OHJDOO\ REOLJDWHG WR SURYLGH WKH ',6&866,21 TXDQWLWDWLRQ DW WKH UHTXHVW RI WKH GHVLJQDWHG 052 7KH 0HGLFDO 5HYLHZ 2IILFHU PD\ UHTXHVW IURP WKH ODERUDWRU\ , DQG WKH ODERUDWRU\ VKDOO SURYLGH TXDQWLWDWLRQ RI WHVW UHVXOWV 7KH 052 VKDOO UHSRUW ZKHWKHU WKH WHVW LV SRVLWLYH RU QHJDWLYH DQG PD\ UHSRUW WKH GUXJV IRU ZKLFK WKHUH ZDV D SRVLWLYH WHVW EXW $6WDQGDUGRI5HYLHZ VKDOO QRW GLVFORVH WKH TXDQWLWDWLRQ RI WHVW UHVXOWV WR WKH HPSOR\HU 3URYLGHG WKDW WKH 052 PD\ UHYHDO WKH TXDQWLWDWLRQ RI D SRVLWLYH :HJHQHUDOO\UHYLHZDGLVWULFWFRXUWjVGHQLDORIDPRWLRQWR WHVW UHVXOW WR WKH HPSOR\HU WKH HPSOR\HH RU WKH GHFLVLRQPDNHU DPHQGDFRPSODLQWIRUDEXVHRIGLVFUHWLRQ6HH8QLWHG6WDWHV LQ D ODZVXLW JULHYDQFH RU RWKHU SURFHHGLQJ LQLWLDWHG E\ RU RQ Y0LGZHVW6XVSHQVLRQ %UDNH)GWK&LU EHKDOI RI WKH HPSOR\HH DQG DULVLQJ IURP D YHULILHG SRVLWLYH GUXJ WHVW +RZHYHUZKHQWKHGLVWULFWFRXUWjVGHFLVLRQLVEDVHG  &)5 †  RQDOHJDOFRQFOXVLRQWKDWWKHSURSRVHGDPHQGPHQWZRXOGEH  3DUU\Y3ULWFKDUGHWDO 1R 1R 3DUU\Y3ULWFKDUGHWDO  IXWLOHZHUHYLHZWKHGHQLDORIWKHPRWLRQWRDPHQGGHQRYR WHVW7KHUHIRUHWKHVWDWHPHQWGRHVQRWFRQVWLWXWHDmIDOVHl 6HH+DKQY6WDU%DQN)GWK&LU VWDWHPHQWDQGFDQQRWULVHWRWKHOHYHORIGHIDPDWLRQ ,QWKHLQVWDQWFDVHWKHGLVWULFWFRXUWGHQLHG3ODLQWLIIjVPRWLRQ WRDPHQGRQWKHJURXQGWKDWLWZDVXQWLPHO\SUHMXGLFLDODQG ,Q DGGLWLRQ HYHQ LI 'HIHQGDQWVj VWDWHPHQWV ZHUH IXWLOH:HZLOOWKHUHIRUHUHYLHZWKHGLVWULFWFRXUWjVGHFLVLRQ GHIDPDWRU\ZHFRQFOXGHWKDWWKH\DUHTXDOLILHGO\SULYLOHJHG IRU DEXVH RI GLVFUHWLRQ H[FHSW WR WKH H[WHQW LW KHOG WKDW XQGHU2KLRODZ8QGHU2KLRODZ 3ODLQWLIIjVDPHQGPHQWZRXOGEHIXWLOHZKLFKZHUHYLHZGH QRYR m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jVPRWLRQWRDPHQGKLVFRPSODLQW SURFHHGVWRGRl )HGHUDO 5XOH RI &LYLO 3URFHGXUH D SURYLGHV WKDW D 0LOOHUY2KLR5HKDE6HUYV&RPPjQ1(G GLVWULFWFRXUWVKDOOIUHHO\JUDQWOHDYHWRDPHQGDFRPSODLQW 2KLR&W&OTXRWLQJ5XOLQJ&DVH/DZ7R ZKHQ MXVWLFH VR UHTXLUHV  6HH )(' 5 &,9 3 D RYHUFRPH WKLV SULYLOHJH 3ODLQWLII PXVW SURGXFH VXIILFLHQW 1HYHUWKHOHVVWKHSDUW\UHTXHVWLQJOHDYHWRDPHQGPXVWmDFW SURRI RI DFWXDO PDOLFH  6HH LG DW   :H EHOLHYH WKDW ZLWKGXHGLOLJHQFHLILWZDQWVWRWDNHDGYDQWDJHRIWKH5XOH V 'HIHQGDQWVjVWDWHPHQWVZKLFKFRQVLVWHGRIFRQIHUHQFHFDOOV OLEHUDOLW\l0LGZHVW6XVSHQVLRQ %UDNH)GDW DQG ID[ WUDQVPLVVLRQV DPRQJVW WKH GHIHQGDQW FRPSDQLHV LQYROYHGLQWKHIHGHUDOO\PDQGDWHGWHVWLQJRI3ODLQWLIIjVXULQH $WWKHRXWVHWZHQRWHWKDW3ODLQWLIIjVsXQHPRWLRQ VSHFLPHQ DUH TXDOLILHGO\ SULYLOHJHG EHFDXVH WKH\ RFFXUUHG WR DPHQG KLV FRPSODLQW FDPH DOPRVW QLQH PRQWKV DIWHU KH GXULQJ WKH UHJXODU FRXUVH RI 'HIHQGDQWVj GXWLHV LQ ILOHGKLVILUVWDPHQGHGFRPSODLQWDQGZHOORYHUD\HDUDIWHUKH DGPLQLVWHULQJ GUXJ WHVWV DQG ZHUH UHDVRQDEO\ QHFHVVDU\ WR ILOHGKLVRULJLQDOFRPSODLQW0RUHRYHUDWWKHWLPH3ODLQWLII GHWHUPLQH ZKDW VKRXOG EH GRQH UHJDUGLQJ 3ODLQWLIIjV GUXJ ILOHG KLV PRWLRQ WR DPHQG WKH GLVWULFW FRXUW KDG JUDQWHG WHVWLQJ UHVXOWV WKH HYHQWV VXUURXQGLQJ KLV ILUVW XULQH VXPPDU\MXGJPHQWWR'HIHQGDQWVWZRDQGRQHKDOIPRQWKV VSHFLPHQDQGZKHWKHUKHVKRXOGJLYHDVHFRQGXULQHVDPSOH HDUOLHU DV ZHOO DV GHQLHG 3ODLQWLIIjV PRWLRQ IRU :H IXUWKHU FRQFOXGH WKDW 3ODLQWLII KDV IDLOHG WR SURGXFH UHFRQVLGHUDWLRQ HYLGHQFHRIDFWXDOPDOLFHWRRYHUFRPHWKHSULYLOHJHDFFRUGHG WKHVHFRPPXQLFDWLRQV 3ODLQWLII LQ WKH LQVWDQW FDVH DUJXHV WKDW D †  FODLP UDLVHG LQ KLV RULJLQDO FRPSODLQW EXW GHOHWHG IURP KLV ILUVW 3ODLQWLII DOVR FRQWHQGV WKDW 'HIHQGDQWV HQJDJHG LQ GHIDPDWLRQE\UHODWLQJLQIRUPDWLRQVXUURXQGLQJKLVGUXJWHVWV  $ %LYHQVDFWLRQ LV DQ DFWLRQ IRU GDPDJHV DULVLQJ RXW RI D YLRODWLRQ RI RQHjV IHGHUDO FRQVWLWXWLRQDO ULJKWV E\ DQRWKHU DFWLQJ XQGHU FRORU RI IHGHUDO ODZ 6HH %LYHQV Y 6L[ 8QNQRZQ $JHQWV RI )HG %XUHDX RI 1DUFRWLFV  86    3DUU\Y3ULWFKDUGHWDO 1R 1R 3DUU\Y3ULWFKDUGHWDO  WKH GLVWULFW FRXUW FRQFOXGHG WKDW WKH VWDWHPHQWV H[FKDQJHG DPHQGHGFRPSODLQWZDVVLPLODUWRWKH%LYHQVFODLPWKDWKH VXUURXQGLQJ3ODLQWLIIjVGUXJWHVWZHUHQRWIDOVH7KLV&RXUW QRZZLVKHVWRDVVHUWLQDVPXFKDVWKH†FODLPDOOHJHGD DJUHHV mFRQVWLWXWLRQDOlFODLPLQDmJHQHUDOVHQVHl+HDUJXHVWKDW WKLVVLPLODULW\DIIRUGV'HIHQGDQWVVXIILFLHQWDQGIDLUQRWLFH 7R VWDWH D FODLP XQGHU 2KLR ODZ IRU GHIDPDWLRQ WKH 3ODLQWLIIjV DUJXPHQW LV IODZHG IRU WZR UHDVRQV  )LUVW WKH SODLQWLII PXVW VKRZ WKDW WKHUH ZDV  D IDOVH VWDWHPHQW †FODLPDOOHJHGLQ3ODLQWLIIjVRULJLQDO FRPSODLQWDURVH GHIDPDWRU\WRWKHSODLQWLIISXEOLVKHGWRDWKLUGSDUW\ IURP'HIHQGDQW3ULWFKDUGjVSXUSRUWHGILOLQJRIDIDOVHSROLFH E\DGHIHQGDQWZKRZDVDWOHDVWQHJOLJHQWDQGGDPDJLQJ UHSRUW LQ ZKLFK 3ULWFKDUG DFFXVHG 3ODLQWLII RI VWHDOLQJ WR WKH SODLQWLII V UHSXWDWLRQ  6HH /DQVGRZQH Y %HDFRQ 3ULWFKDUGjVWUXFNE\GULYLQJLWDFURVVVWDWHOLQHVWR1HZ W@KHSODLQWLIIjVGLVPLVVDOZDVPRWLYDWHG GLVWULFWFRXUWSURSHUO\DQDO\]HG3ODLQWLIIjVFODLPDQGSURSHUO\ E\ FRQGXFW UHODWHG WR WKH SXEOLF SROLF\l DQG  m>W@KH FRQFOXGHGWKDWDQLPSOLHGSULYDWHFDXVHRIDFWLRQGRHVQRW HPSOR\HUODFNHGRYHUULGLQJOHJLWLPDWHEXVLQHVVMXVWLILFDWLRQ H[LVWXQGHU&)5†RU)27(7$ IRUWKHGLVPLVVDOl3DLQWHUY*UDOH\1(GQ 2KLR$EVHQWDQ2KLRVWDWXWHH[SUHVVLQJ2KLRSXEOLF 7KHUHJXODWLRQXSRQZKLFK3ODLQWLIIUHOLHVUHDGVLQSHUWLQHQW SROLF\ ZKHWKHU D FOHDU SXEOLF SROLF\ H[LVWV LV WR EH SDUW GHWHUPLQHGE\WKHFRXUWVRIWKHVWDWHRI2KLR6HHLGDW 7KHHPSOR\HHPD\QRWEHUHTXLUHGWRZDLYHOLDELOLW\ZLWK 3ODLQWLIIDUJXHVWKDW'HIHQGDQWVYLRODWHGWKH$'$DQG UHVSHFW WR QHJOLJHQFH RQ WKH SDUW RI DQ\ SHUVRQ 86&†WKHUHE\YLRODWLQJ2KLRSXEOLFSROLF\$VWR SDUWLFLSDWLQJLQWKHFROOHFWLRQKDQGOLQJRUDQDO\VLVRIWKH WKH $'$ 3ODLQWLII DUJXHV WKDW VLQFH KH ZDV WHUPLQDWHG VSHFLPHQRUWRLQGHPQLI\DQ\SHUVRQIRUWKHQHJOLJHQFH RIRWKHUV  &)5†ILL7KHVWDWXWHXQGHUZKLFKWKH +RZHYHU ZHUH ZH WR HQJDJH LQ WKH EXUGHQVKLIWLQJ DQDO\VLV ZH UHJXODWLRQ ZDV SURPXOJDWHG )27(7$ SURYLGHV WKDW WKH ZRXOG VWLOO FRQFOXGH WKDW 3ODLQWLII KDV IDLOHG WR VWDWH D FODLP XQGHU WKH 6HFUHWDU\ RI 7UDQVSRUWDWLRQ VKDOO SUHVFULEH UHJXODWLRQV WR $'$ VXIILFLHQW WR DYRLG VXPPDU\ MXGJPHQW 8QGHU WKH EXUGHQVKLIWLQJ DQDO\VLV LI 3ODLQWLII KDG HVWDEOLVKHG D SULPD FDVH RI GLVFULPLQDWLRQ XQGHU HVWDEOLVK GUXJ WHVWLQJ SURJUDPV m>L@Q WKH LQWHUHVW RI WKH $'$ WKH EXUGHQ ZRXOG WKHQ VKLIW WR 'HIHQGDQWV WR SURGXFH D FRPPHUFLDOPRWRUYHKLFOHVDIHW\l86&†,Q OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQ IRU 3ODLQWLIIjV WHUPLQDWLRQ 6HH DGGLWLRQWKHUHJXODWLRQVSURYLGHWKDWm>W@KHSXUSRVHLVWR 0DUWLQ Y %DUQHVYLOOH ([HPSWHG 9LOO 6FK 'LVW %G RI (GXF  )G HVWDEOLVK SURJUDPV GHVLJQHG WR KHOS SUHYHQW DFFLGHQWV DQG   WK &LU  ,Q WKH LQVWDQW FDVH 3ODLQWLII ZDV WHUPLQDWHG LQMXULHV UHVXOWLQJ IURP WKH PLVXVH RI DOFRKRO RU XVH RI EHFDXVH KH DOOHJHGO\ WRRN KLV HPSOR\HUjV WUXFN DQG GURYH LW DFURVV VWDWH FRQWUROOHG VXEVWDQFHV E\ GULYHUV RI FRPPHUFLDO PRWRU YHKLFOHVl&)5† OLQHV ZLWKRXW KLV HPSOR\HUjV SHUPLVVLRQ 'HIHQGDQW KDYLQJ SURIIHUHG D OHJLWLPDWH QRQGLVFULPLQDWRU\ UHDVRQ IRU 3ODLQWLIIjV WHUPLQDWLRQ 3ODLQWLII PXVW HVWDEOLVK WKDW WKH SURIIHUHG UHDVRQ LV PHUHO\ D SUHWH[W IRU GLVFULPLQDWLRQ 6HH LG :H FRQFOXGH WKDW 3ODLQWLII KDV QRW PHW WKLV ,Q&RUWY$VK86WKH6XSUHPH&RXUW EXUGHQ 3ODLQWLII KDV IDLOHG WR SXW IRUWK DQ\ HYLGHQFH VKRZLQJ WKDW WKH DUWLFXODWHGDIRXUSDUWWHVWWRGHWHUPLQHZKHWKHUDQLPSOLHG VWDWHG UHDVRQ IRU KLV WHUPLQDWLRQ ZDV PHUHO\ SUHWH[WXDO 7KHUHIRUH HYHQ ULJKWRIDFWLRQH[LVWVLQDIHGHUDOVWDWXWH7KHIRXUSDUWWHVW DVVXPLQJ DUJXHQGR 3ODLQWLII FRXOG KDYH HVWDEOLVKHG D SULPD IDFLH FDVH ZH FRQFOXGH WKDW 3ODLQWLIIjV FODLP XQGHU WKH $'$ ZRXOG QHYHUWKHOHVV IDLO HVWDEOLVKHG LQ &RUW UHTXLUHV WKDW WKH FRXUW FRQVLGHU  3DUU\Y3ULWFKDUGHWDO 1R 1R 3DUU\Y3ULWFKDUGHWDO  ZKHWKHUSODLQWLIIVDUHDPRQJWKHFODVVRISHUVRQVLQWHQGHG VXEVWDQWLDOO\OLPLWDPDMRUOLIHDFWLYLW\RIWKHHPSOR\HH6HH WREHQHILWIURPWKHHQDFWPHQWRIWKHVWDWXWHZKHWKHUWKHUH 86&†1LHOVHQY0RURQL)HHG&R)G LV DQ\ HYLGHQFH RI OHJLVODWLYH LQWHQW WR SURYLGH RU GHQ\ D WK&LU.RFVLVY0XOWL&DUH0JPW,QF SULYDWH UHPHG\  ZKHWKHU D SULYDWH UHPHG\ ZRXOG EH  )G   WK &LU  DFNQRZOHGJLQJ WKDW WR FRQVLVWHQW ZLWK WKH XQGHUO\LQJ SXUSRVHV RI WKH OHJLVODWLYH SUHYDLORQDSHUFHLYHGGLVDELOLW\FODLPDmSODLQWLIIPXVWVKRZ VFKHPH DQG  ZKHWKHU WKH DFWLRQ LV RQH WUDGLWLRQDOO\ WKDWWKHSHUFHLYHGLPSDLUPHQWLVDVXEVWDQWLDOOLPLWDWLRQRQD GHOHJDWHGWRVWDWHODZVRLWZRXOGEHLQDSSURSULDWHWRLPSO\D PDMRUOLIHDFWLYLW\l IHGHUDOUHPHG\86DW6LQFHWKHLVVXDQFHRI&RUW KRZHYHUWKH6XSUHPH&RXUWKDVUHILQHGWKLVLQTXLU\DQGWKH 7KH WHUP mµVXEVWDQWLDOO\ OLPLWVj PHDQV DQ LQDELOLW\ WR IRFDOSRLQWLVZKHWKHU&RQJUHVVH[SUHVVO\RUE\LPSOLFDWLRQ SHUIRUPRUDVLJQLILFDQWUHVWULFWLRQRQWKHDELOLW\WRSHUIRUPDV LQWHQGHG WR FUHDWH D SULYDWH FDXVH RI DFWLRQ  6HH FRPSDUHGWRWKHDYHUDJHSHUVRQLQWKHJHQHUDOSRSXODWLRQl 7UDQVDPHULFD0RUWJDJH$GYLVRUV,QFY/HZLV86 &DVVLG\Y'HWURLW(GLVRQ&R)GWK&LU 7RXFKH5RVV &RY5HGLQJWRQ86  FLWLQJ  &)5 † M  mµ0DMRU OLIH VHHDOVR7KRPSVRQY7KRPSVRQ86 DFWLYLWLHVj LQFOXGH µIXQFWLRQV VXFK DV FDULQJ IRU RQHVHOI   6FDOLD s FRQFXUULQJ m>:@H HIIHFWLYHO\ SHUIRUPLQJPDQXDOWDVNVZDONLQJVHHLQJKHDULQJVSHDNLQJ RYHUUXOHGWKH&RUWY$VKDQDO\VLVLQ7RXFKH5RVVDQG EUHDWKLQJOHDUQLQJDQGZRUNLQJlj,GTXRWLQJ&)5 7UDQVDPHULFD    FRQYHUWLQJ RQH RI LWV IRXU IDFWRUV †L FRQJUHVVLRQDOLQWHQWLQWRWKHGHWHUPLQDWLYHIDFWRUl7KH RWKHU &RUW IDFWRUV DUH UHOHYDQW LQVRIDU DV WKH\ DVVLVW LQ 3ODLQWLIIKDVIDLOHGWRDOOHJHDQ\HYLGHQFHWKDWZRXOGOHDG GHWHUPLQLQJFRQJUHVVLRQDOLQWHQW6HH7RXFKH5RVV86 D UHDVRQDEOH MXU\ WR FRQFOXGH WKDW 'HIHQGDQWV UHJDUGHG RU DW mSHUFHLYHGl KLP DV KDYLQJ D VXEVWDQWLDOO\ OLPLWLQJ GLVDELOLW\nDGUXJDGGLFWLRQ6SHFLILFDOO\3ODLQWLIIKDVIDLOHG 'HIHQGDQWV UHO\ XSRQ 6DORPRQ Y 5RFKH &RPSXFKHP WR SURGXFH DQ\ HYLGHQFH WKDW 'HIHQGDQWV EHOLHYHG KH ZDV /DERUDWRULHV ,QF  )6XSS  ('1 Z@HVHHQRUHDVRQWREDU>WKHSODLQWLIIjV@FODLPVROHO\RQWKH LQYLRODWLRQRIWKH$'$ JURXQGV RI D QRQMXULVGLFWLRQDO UHTXLUHPHQW ZKRVH EULHI DEVHQFH FDXVHG 2KLR QR SUHMXGLFH LQ WKLV FDVHl  ,G  7KH 8QGHUWKH$'$DFODLPDQWZKRZLVKHVWREULQJDODZVXLW &RXUWZHQWIXUWKHUWRKROGWKDWmWKHSURSHUWLPHIRU2KLRWR FODLPLQJ D YLRODWLRQ RI WKH $'$ PXVW ILOH D FKDUJH RI UDLVHWKLVDUJXPHQWZDVEHWZHHQWKHILOLQJRIWKHODZVXLWDQG GLVFULPLQDWLRQZLWKWKH((2&ZLWKLQGD\VRIWKHDOOHJHG >WKHSODLQWLIIjV@UHFHLSWRIWKHOHWWHUl,GDW GLVFULPLQDWLRQ 6HH  86& † D  86& †HHsRQHVY6XPVHU5HW9LOO)G +HUHDOWKRXJK3ODLQWLIIGLGQRWDSSULVHWKHGLVWULFWFRXUWRI WK&LU$QHPSOR\HHPD\QRWILOHDVXLWXQGHUWKH KLVULJKWWRVXHOHWWHUXQWLOKLVPRWLRQIRUUHFRQVLGHUDWLRQ $'$LIKHRUVKHGRHVQRWSRVVHVVDULJKWWRVXHOHWWHUIURP 3ODLQWLIIKDGLQIDFWUHFHLYHGWKHULJKWWRVXHOHWWHUSULRUWRWKH WKH ((2& EHFDXVH KH RU VKH KDV QRW H[KDXVWHG KLV RU KHU GLVWULFWFRXUWjVRUGHUJUDQWLQJVXPPDU\MXGJPHQW+RZHYHU UHPHGLHV  6HH  86& † HI  86& DVLQ3RUWLVWKHUHLVQRMXULVGLFWLRQDOGHIHFWDQGQRHYLGHQFH † D SURFHGXUHV IURP † H DSSO\ WR $'$ WKDW'HIHQGDQWVVXIIHUHGDQ\SUHMXGLFHIURP3ODLQWLIIjVIDLOXUH FODLPVVHHDOVR((2&Y)UDQNjV1XUVHU\ &UDIWV,QF WRLQLWLDOO\VDWLVI\WKLVFRQGLWLRQSUHFHGHQWDGHIHFWKHODWHU )GWK&LU+RZHYHUWKHIDLOXUHWR FXUHG6HH3RUWLV)GDW:HWKHUHIRUHWKLQNLW REWDLQDULJKWWRVXHOHWWHULVQRWDMXULVGLFWLRQDOGHIHFWUDWKHU ZRXOGEHXQGXO\KDUVKXQGHUWKHVHFLUFXPVWDQFHVWRGHQ\ WKHULJKWWRVXHOHWWHULVDFRQGLWLRQSUHFHGHQW6HH5LYHUVY 3ODLQWLIIKLVGD\LQFRXUWDVWRKLV$'$FODLPDFFRUGLQJO\ %DUEHUWRQ%GRI(GXF)GWK&LU ZH FRQFOXGH WKDW WKH GLVWULFW FRXUW LPSURSHUO\ GLVPLVVHG $FFRUGLQJO\WKHUHTXLUHPHQWRIREWDLQLQJDULJKWWRVXHOHWWHU 3ODLQWLIIjVFODLPRQWKDWEDVLV PD\EHZDLYHGE\WKHSDUWLHVRUWKHFRXUW6HHLGDW 1HYHUWKHOHVVWKLV&RXUWGHWHUPLQHVWKDW3ODLQWLIIjVFODLP ,Q3RUWLVY2KLR)GWK&LUDSODLQWLII IRUZURQJIXOWHUPLQDWLRQXQGHUWKH$'$WREHZLWKRXWPHULW EURXJKW VXLW DJDLQVW WKH VWDWH RI 2KLR XQGHU 7LWOH 9,, DQG 7RVWDWHDFODLPXQGHUWKH$'$3ODLQWLIIPXVWHVWDEOLVKD 2KLRVWDWHODZIRUVH[XDOGLVFULPLQDWLRQ7KHGLVWULFWFRXUW SULPDIDFLHFDVHRIGLVFULPLQDWLRQ6HH0DUWLQY%DUQHVYLOOH GLVPLVVHGWKHSODLQWLIIjVFODLPZLWKRXWSUHMXGLFHEHFDXVHWKH ([HPSWHG9LOO6FK'LVW%GRI(GXF)GWK SODLQWLIIKDGQRW\HWH[KDXVWHGKHUDGPLQLVWUDWLYHUHPHGLHV &LU2QFH3ODLQWLIIHVWDEOLVKHVDSULPDIDFLHFDVHWKH EHFDXVHVKHKDGQRWREWDLQHGDULJKWWRVXHOHWWHUIURPWKH  ,Q KLV PRWLRQ IRU UHFRQVLGHUDWLRQ 3ODLQWLII FODLPV WKDW KH mUHOLH>G@ RQ KLV 6XUUHSO\V WR ERWK 0RKDZN 0RWRUV DQG $XVWLQWRZQ (5 ZKHUHLQ LQIRUP WKH FRXUW RI KLV UHFHLSW RI WKH ULJKWWRVXH OHWWHU XQWLO KH ILOHG WKH 3ODLQWLII SURYLGHG D FRS\ RI WKH ((2& FKDUJH DQG WKH 5LJKW WR 6XH OHWWHU PRWLRQ IRU UHFRQVLGHUDWLRQ    l s$ DW