- 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 $11$%(//( /(** ; 3ODLQWLII$SSHOODQW 1R Y ! '5 $6+ &+235$ 'HIHQGDQW 81,9(56,7 D@W WKH WLPH WKH 'HIHQGDQW ILOHG LWV 0RWLRQ IRU WKHUHTXLUHPHQWVRIEZKLFKUHTXLUHVWKDWWKH 6XPPDU\sXGJPHQWWKHGLVFRYHU\GHSRVLWLRQVRIWKHDJHQWV H[SHUWEHOLFHQVHGWRSUDFWLFHmLQWKHVWDWHRU D FRQWLJXRXV RIWKH'HIHQGDQWKDGMXVWEHHQFRPSOHWHG&RXQVHOIRUWKH ERUGHU VWDWHl 7KH FRXUW IXUWKHU KHOG WKDW 0LWWHPH\HUjV 3ODLQWLII KDG QRW HYHQ UHFHLYHG D FRS\ RI WKH VLJQHG DIILGDYLWZDVRWKHUZLVHLQVXIILFLHQWWRFUHDWHDJHQXLQHLVVXH GHSRVLWLRQVRI'U&KRSUDDQG'U+DWFKHUl /HJJIXUWKHU RIIDFWXQGHU)HG5&LY3H)LQDOO\WKHGLVWULFWFRXUW DUJXHVWKDWXQWLOWKHVHGHSRVLWLRQVZHUHDYDLODEOHLWZRXOGEH GHQLHG3ODLQWLIIjVPRWLRQWRZDLYHWKHUHTXLUHPHQWVRI GLIILFXOWWRHQOLVWDQH[SHUWZLWQHVV E7KHUHDIWHU3ODLQWLIIPRYHGWRYDFDWHMXGJPHQWWR JLYHKHUDGGLWLRQDOWLPHWRREWDLQDTXDOLI\LQJH[SHUW7KH 7KLVDUJXPHQWLVZLWKRXWPHULW/HJJVKRXOGKDYHEHHQ GLVWULFW FRXUW GHQLHG WKH PRWLRQ EHFDXVH 3ODLQWLII IDLOHG WR VHDUFKLQJIRUDQH[SHUWDWWKHRXWVHWLQRUGHUWRSURSHUO\PHHW PHHWWKHVWDQGDUGVVHWRXWLQ5XOHWRMXVWLI\UHOLHI7KLV KHUEXUGHQRISURRIXQGHU7HQQ&RGH$QQ DSSHDOIROORZV )XUWKHU/HJJjVDUJXPHQWLVUHDOO\DPRWLRQWRUHFRQVLGHUQRW DPRWLRQXQGHU)HG5&LY3RUE7KXVWKHGLVWULFW ,, FRXUWGLGQRWDEXVHLWVGLVFUHWLRQLQGHQ\LQJWKHPRWLRQ :HUHYLHZWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQW ( GHQRYR+DUWVHOY.H\V)GWK&LU 6XPPDU\ MXGJPHQW LV DSSURSULDWH mLI WKH SOHDGLQJV /DVWO\/HJJDOOHJHVWKDWWKHUHVWULFWLYHODQJXDJHRI7HQQ GHSRVLWLRQV DQVZHUV WR LQWHUURJDWRULHV DQG DGPLVVLRQV RQ &RGH$QQELVXQFRQVWLWXWLRQDO6SHFLILFDOO\ ILOHWRJHWKHUZLWKWKHDIILGDYLWVLIDQ\VKRZWKDWWKHUHLVQR VKH FODLPV WKDW WKH VWDWH VWDWXWH YLRODWHV KHU FRQVWLWXWLRQDO JHQXLQHLVVXHDVWRDQ\PDWHULDOIDFWDQGWKDWWKHPRYLQJSDUW\ ULJKW WR GXH SURFHVV DQG HTXDO SURWHFWLRQ EHFDXVH LW WUHDWV LVHQWLWOHGWRDMXGJPHQWDVDPDWWHURIODZl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jV HIIRUW WR DQGSURJHQ\ UHWDLQDQH[SHUWLQ7HQQHVVHHRUDFRQWLJXRXVVWDWHGHVSLWHWKH IDFWWKDWWKHSODLQWLIIKDGFRQWDFWHGGRFWRUVLQWZR7HQQHVVHH ,QIHGHUDOGLYHUVLW\DFWLRQVVWDWHODZJRYHUQVVXEVWDQWLYH FLWLHVXVHGDSURIHVVLRQDOZLWQHVVORFDWRUDQGDOVRWULHGWR LVVXHVDQGIHGHUDOODZJRYHUQVSURFHGXUDOLVVXHV(ULH55 HQOLVWRWKHUGRFWRUVWR EHOLVWHGDVH[SHUWV6HHLGDW &RY7RPSNLQV865XOHVRIHYLGHQFHDUH 7KH 7HQQHVVHH&RXUWRI$SSHDOVVXSSRUWHGLWVGHFLVLRQE\ GHHPHGUXOHVRISURFHGXUH&KDUOHV$ODQ:ULJKW $UWKXU OLVWLQJ IURP WKH GHIHQGDQWj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jVDIILGDYLW)LUVWRQ$XJXVWFRXQVHOKDG ,QGHHGWKHIHGHUDOUXOHVWKHPVHOYHVSURYLGHWKDWWKH\ KLVUHVHDUFKDQDO\VW.HQ%HUU\VHDUFKIRUDQH[SHUW%HUU\ mDSSO\JHQHUDOO\WRFLYLODFWLRQVDQGSURFHHGLQJVl)HG5 IRXQG RQO\ D VLQJOH H[SHUW ZKRP FRXQVHO FRQWDFWHG 7KH (YLGE)XUWKHUWKLV&RXUWKDVFDWHJRULFDOO\VWDWHG H[SHUW ZDV XQZLOOLQJ WR WHVWLI\ EHFDXVH KH ZDV DFTXDLQWHG WKDW m>W@KH DGPLVVLELOLW\ RI H[SHUW WHVWLPRQ\ LV D PDWWHU RI ZLWK'U&KRSUD1H[WLQ1RYHPEHUFRXQVHOFRQWDFWHG IHGHUDOUDWKHUWKDQVWDWHSURFHGXUHl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jVDIILGDYLWUHYHDOV ZLWK D VWDWH VXEVWDQWLYH UXOH 7KLV LV HVSHFLDOO\ WUXH ZLWK OLPLWHGFRQWDFWVLQWKHQLQHPRQWKSHULRGVXEVHTXHQWWRWKH PHGLFDO PDOSUDFWLFH VWDWXWHV EHFDXVH H[SHUW WHVWLPRQ\ LV ILOLQJRIWKHFRPSODLQW,QWKHDEVHQFHRILQIRUPDWLRQRQWKH XVXDOO\UHTXLUHGWRHVWDEOLVKWKHVWDQGDUGRIFDUH6HH3HFNY QXPEHU RI XURORJLVWV DYDLODEOH LQ 7HQQHVVHH DQG WKH 7HJWPH\HU)6XSS:'9Dm,QRWKHU FRQWLJXRXVVWDWHVZHFDQQRWVD\WKDWWKHGLVWULFWFRXUWHUUHG ZRUGVXQGHUWKHVWDWXWRU\VFKHPHWKHVWDQGDUGRIFDUHLVWKDW LQGHQ\LQJWKHZDLYHU ZKLFK LV WHVWLILHG WR E\ DQ H[SHUW TXDOLILHG XQGHU WKH VWDWXWHlDIIjG)GWK&LUXQSXEOLVKHGSHU ' FXULDP7KH)HGHUDO5XOHVRI(YLGHQFHUHVROYHWKLVSRWHQWLDO FRQIOLFWEHWZHHQVWDWHDQGIHGHUDOODZRQWKHLVVXHRIZLWQHVV 3ODLQWLII DUJXHV WKDW WKH GLVWULFW FRXUW LPSURSHUO\ GHQLHG FRPSHWHQF\ 6HH JHQHUDOO\ sRVHSK 0 0F/DXJKOLQ 3ODLQWLIIjVPRWLRQWRYDFDWHWKHMXGJPHQWLQRUGHUWRJLYHKHU DGGLWLRQDOWLPHWRREWDLQ DQ H[SHUW:HUHYLHZGHQLDOVRI /HJJY&KRSUDHWDO 1R 1R /HJJY&KRSUDHWDO :(,167(,1j6(9,'(1&(>@5XOH WKDW WKH LQFLVLRQ KDG EHHQ RULJLQDOO\ VXWXUHG DQG GHKLVFHG LQFRUSRUDWHV WKH (ULH PDQGDWH E\ H[SUHVVO\ SURYLGLQJ WKDW QHFHVVLWDWLQJWKDWLWEHUHVXWXUHG0LWWHPH\HUjVDIILGDYLWVIDLO m6WDWHODZVXSSOLHVWKHUXOHRIGHFLVLRQWKHFRPSHWHQF\RID WRLGHQWLI\DQ\PDWHULDOIDFWWRFDVWGRXEWRQWKHVHUHFRUGV ZLWQHVVVKDOOEHGHWHUPLQHGLQDFFRUGDQFHZLWK6WDWHODZl 7KH\DUHVSHFXODWLYHDWPRVWWKH\GHPRQVWUDWHWKHSRVVLELOLW\ )HG5(YLGFI)HG5(YLGVWDWHODZDSSOLHVLQ RI PDOSUDFWLFH QRW WKH SUREDELOLW\ RI PDOSUDFWLFH 7KH\ TXHVWLRQVRISUHVXPSWLRQ)HG5(YLGTXHVWLRQVRI WKHUHIRUHIDLOWRHVWDEOLVKDJHQXLQHLVVXHDVWRFDXVDWLRQ6HH SULYLOHJHmVKDOOEHGHWHUPLQHGLQDFFRUGDQFHZLWK6WDWHODZl %REXUND Y $GFRFN )G WK &LU GLVFXVVLQJVXIILFLHQF\RIHYLGHQFHRIFDXVDWLRQXQGHU7HQQ 7KH7HQQHVVHHVWDWXWHLVSUHFLVHO\WKHW\SHRIUXOH)HG5 &RGH $QQ D KROGLQJ WKDW WKH 7HQQHVVHH (YLGDGGUHVVHV,WSURYLGHVLQSDUW PDOSUDFWLFHVWDWXWHUHTXLUHVSURRIWKDWLWLVPRUHOLNHO\WKDQ QRWWKDWWKHGHIHQGDQWjVQHJOLJHQFHFDXVHGWKHLQMXU\mPHUH &ODLPDQWjVEXUGHQLQPDOSUDFWLFHDFWLRQ SRVVLELOLW\lLVQRWHQRXJK ([SHUWWHVWLPRQ\3UHVXPSWLRQRIQHJOLJHQFHsXU\ LQVWUXFWLRQVD,QDPDOSUDFWLFHDFWLRQWKHFODLPDQW 0U/HJJjVGHSRVLWLRQWHVWLPRQ\FDQQRWUHVXUUHFW3ODLQWLIIjV VKDOOKDYHWKHEXUGHQRISURYLQJE\HYLGHQFHDVSURYLGHG FODLPEHFDXVHLWLVLQFRQFOXVLYH LQVXEVHFWLRQE 7KHUHFRJQL]HGVWDQGDUGRIDFFHSWDEOHSURIHVVLRQDO 5HJDUGLQJ3ODLQWLIIj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jV $FWV LQ FLYLO FDVHV VLQFH VWDWH ODZ JRYHUQHG TXHVWLRQV E7KHODVWVHQWHQFHRIESURYLGHV RI FRPSHWHQF\ 'RXEWLQJ WKH HIIHFWLYHQHVV RI WKH 'HDG 0DQjV $FWV WKH WKDWWKHUHTXLUHPHQWPD\EHZDLYHGLIWKHFRXUWmGHWHUPLQHV $GYLVRU\ &RPPLWWHH RULJLQDOO\ GUDIWHG 5XOH WR DYRLG UHTXLULQJ WKDW WKH DSSURSULDWH ZLWQHVVHV RWKHUZLVH ZRXOG QRW EH IHGHUDO FRXUWV WR IROORZ VWDWH ODZ RQ WKH LVVXH RI FRPSHWHQF\ RI ZLWQHVVHV 7KH RULJLQDO YHUVLRQ RI 5XOH FRQWDLQHG RQO\ LWV SUHVHQW ILUVW VHQWHQFH DYDLODEOHl7HQQ&RGH$QQE 7KH GLVWULFW FRXUW IRXQG WKDW 3ODLQWLII IDLOHG WR PDNH D &RQJUHVV UHMHFWHG WKLV YHUVLRQ DQG DGGHG WKH VHFRQG VHQWHQFH WR 5XOH (ULH GRFWULQH 6HH :(,167(,1j6 )('(5$/ (9,'(1&( >@>E@ >@>D@ >E@ ) WR UHIOHFW WKH VKRZLQJWKDWWKHDSSURSULDWHZLWQHVVRWKHUZLVHZRXOGQRWEH 6XSS :' 9D REVHUYLQJ WKDW 5XOH mKDV EHHQ VHH DOVR 3HFN Y 7HJWPH\HU DYDLODEOHDQGWKDWFRXQVHOjVHIIRUWVWRILQGDQH[SHUWZLWKLQ SULPDULO\ FRQFHUQHG ZLWK WKH SURSHU DSSOLFDWLRQ RI YDULRXV VWDWHVj GHDG WKHJHRJUDSKLFUHDOPRIEZHUHFXUVRU\DWEHVW PDQ VWDWXWHVl DQG WKDW JLYHQ WKLV KLVWRULFDO FRQWH[W mLW LV GRXEWIXO WKDW 7KHFRXUWWKHUHIRUHUHIXVHGWRH[HUFLVHLWVVWDWXWRULO\FUHDWHG WKH UXOH ZDV LQWHQGHG WR VXSSODQW 5XOH l )G WK &LU GLVFUHWLRQUHJDUGLQJPHGLFDOH[SHUWV7KHGLVWULFWFRXUWUHOLHG XQSXEOLVKHG DIIjG /HJJY&KRSUDHWDO 1R 1R /HJJY&KRSUDHWDO 'U.OHLQWROGKLPWKDW&KRSUDGLGQRWSXWLQDQ\VWLWFKHV $VDSUR[LPDWHUHVXOWRIWKHGHIHQGDQWj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o7KHQKHNLFNHG ZKLFKZRXOGPDNHSHUVRQjVH[SHUWWHVWLPRQ\UHOHYDQWWR EDFNDQGVDLGm:HOOHLWKHUWKH\IRUJRWWRSXWLQVWLWFKHV WKH VSHFLDOW\ ZKLFK ZRXOG PDNH WKH SHUVRQjV H[SHUW RUWKHVWLWFKHVIHOORXWEXWPLQHZLOOQRWIDOORXWl$QG WHVWLPRQ\ UHOHYDQW WR WKH LVVXHV LQ WKH FDVH DQG KDG WKDWZDVSUHWW\PXFKLW+HH[SODLQHGWKDW SUDFWLFHGWKLVSURIHVVLRQRUVSHFLDOW\LQRQHRIWKHVH VWDWHVGXULQJWKH\HDUSUHFHGLQJWKHGDWHWKDWWKHDOOHJHG 3ODLQWLIIDUJXHVWKDW0U/HJJjVWHVWLPRQ\FUHDWHVDJHQXLQH LQMXU\RUZURQJIXODFWRFFXUUHG7KLVUXOHVKDOODSSO\WR LVVXH RI IDFW DQG WKDW 0LWWHPH\HUjV DIILGDYLW PHUHO\ H[SHUWZLWQHVVHVWHVWLI\LQJIRUWKHGHIHQGDQWDVUHEXWWDO DFNQRZOHGJHWKHH[LVWHQFHRIWKLVGLVSXWH ZLWQHVVHV7KHFRXUWPD\ZDLYHWKLVVXEVHFWLRQZKHQLW GHWHUPLQHV WKDW WKH DSSURSULDWH ZLWQHVVHV RWKHUZLVH :H GLVDJUHH 7R EHJLQ DV WKH GLVWULFW FRXUW QRWHG WKH ZRXOGQRWEHDYDLODEOH 0LWWHPH\HU DIILGDYLWV DUH SKUDVHG LQ FRQGLWLRQDO WHUPV 3DUDJUDSK RI WKH RULJLQDO DIILGDYLW DQG SDJH RI WKH 7HQQ&RGH$QQ6XSS7KHVWUXFWXUHRI VXSSOHPHQWDODIILGDYLWVWDWHm,I'U&KRSUDIDLOHGWRVXWXUHWKH WKH VWDWXWH UHIOHFWV WKH LQWLPDWH UHODWLRQVKLS EHWZHHQ WKH LQWHULRUYDJLQDZDOOWKDWLVDGHYLDWLRQRIWKHVWDQGDUGRIFDUH VWDQGDUG RI FDUH DQG WKH TXDOLILFDWLRQ UHTXLUHPHQWV RI WKH +RZHYHULI'U&KRSUDGLGVXWXUHWKHDQWHULRUYDJLQDOZDOO PHGLFDOH[SHUWZKRZLOOHVWDEOLVKWKDWVWDQGDUG7KXVWKHUH GXULQJKLVVXUJHU\WKHQ'U&KRSUDZDVQRWQHJOLJHQWl7KH FDQ EH OLWWOH GRXEW EXW WKDW E YLD 5XOH DIILGDYLWVIDLOWRUHIHUHQFHDQ\UHFRUGVIURPWKH8QLYHUVLW\RI DSSOLHVLQWKLVIHGHUDOGLYHUVLW\DFWLRQ)LQDOO\ZHQRWHWKDW 7HQQHVVHH 0HGLFDO &HQWHU RU 8QLYHUVLW\ 8URORJ\ 3& WZRGLVWULFWFRXUWVKDYHDOUHDG\UHDFKHGWKLVFRQFOXVLRQ6HH LQGLFDWLQJWKDWWKHUHZDVVXFKDIDLOXUHWRVXWXUHWKHDQWHULRU 5DOSK E\ 5DOSK Y 1DJ\ ) 6XSS 0' YDJLQDOZDOO,QIDFWHYLGHQFHSUHVHQWHGE\'HIHQGDQWVDV 7HQQ&UXPHO\Y0HPRULDO+RVS,QF)6XSS SDUWRILWVPRWLRQIRUVXPPDU\MXGJPHQWHVWDEOLVKHVMXVWWKH Q('7HQQDIIjG)GWK&LU RSSRVLWH7KH2SHUDWLYH5HSRUWVGDWHG$XJXVWDQG XQSXEOLVKHG FI %DUWRQ Y $P 5HG &URVV ) 6HSWHPEHU PDLQWDLQHG E\ WKH 8QLYHUVLW\ RI 6XSS0'$ODKROGLQJWKDWXQGHU5XOH 7HQQHVVHH0HGLFDO&HQWHUVWDWHWKDW'U&KRSUDVXWXUHG0UV FRPSHWHQF\ UHTXLUHPHQWV XQGHU $ODEDPD 0HGLFDO /HJJjVDQWHULRUZDOO7KH2SHUDWLYH5HSRUWGDWHG$XJXVW /LDELOLW\$FWDSSOLHGLQIHGHUDOFRXUWUDWKHUWKDQ5XOH VWDWHVm>Z@HFORVHGWKHDQWHULRUYDJLQDOZDOOZLWK DIIjG)GWK&LU,QVXP)HGHUDO5XOHRI 9LFWU\OUXQQLQJVXWXUHls$7KH2SHUDWLYH5HSRUW GDWHG6HSWHPEHUSUHSDUHGE\'U.OHLQVWDWHGm2Q LQVSHFWLRQ WKH HQWLUH YDJLQDO IODS GHKLVFHG >L@W ZDV UHVXWXUHG ZLWK UXQQLQJ DQG LQWHUUXSWHG 9LFU\Ol s$ :H KDYH SUHYLRXVO\ GHFOLQHG WR GHFLGH ZKHWKHU 5XOH RU FRQWUROV WKH FRPSHWHQF\ RI D PHGLFDO H[SHUW 6HH 5DOSK E\ 5DOSK Y 'U.OHLQjVUHSRUWFOHDUO\FRPPXQLFDWHVKLVLPSUHVVLRQ 1DJ\ )G WK &LU m7KHVH LVVXHV DUH PRRW EHFDXVH WKH MXU\ H[SUHVVO\ IRXQG WKDW WKH GHIHQGDQW GLG QRW EUHDFK KLV GXW\ WR WKH /HJJY&KRSUDHWDO 1R 1R /HJJY&KRSUDHWDO (YLGHQFH GLFWDWHV WKDW WKH 7HQQHVVHHjV ZLWQHVV (YLG VLQFH WKH ILUVW LV GLUHFWHG DW HVWDEOLVKLQJ WKH FRPSHWHQF\UXOHJRYHUQVWKHDGPLVVLELOLW\RIPHGLFDOH[SHUW VXEVWDQWLYHLVVXHLQWKHFDVHDQGWKHVHFRQGLVDJDWHNHHSLQJ WHVWLPRQ\LQWKLVFDVH PHDVXUHGHVLJQHGWRHQVXUHmIDLUQHVVLQDGPLQLVWUDWLRQlRIWKH FDVH6HH)HG5(YLG 7KLV GRHV QRW FRPSOHWHO\ HQG RXU DQDO\VLV KRZHYHU ,PSOLFLWLQ3ODLQWLIIjVDUJXPHQWLVWKHDVVXPSWLRQWKDW5XOHV ,QFRQFOXVLRQZHKROGWKDWWKHGLVWULFWFRXUWGLGQRWHUULQ DQGDUHPXWXDOO\H[FOXVLYH:HGRQRWDJUHHZLWK DSSO\LQJ)HG5(YLGDQG7HQQ&RGH$QQ WKLVDVVXPSWLRQ$VWKHIRUHJRLQJGLVFXVVLRQH[SODLQV5XOH ELQLWVDQDO\VLV GHDOV ZLWK WKH ZLWQHVVjV FRPSHWHQF\ ZKLFK PDNHV LW HVVHQWLDOO\VXEVWDQWLYHEHFDXVHLWLVmLQWLPDWHO\LQWHUWZLQHGl % ZLWKWKHVXEVWDQWLYHODZZKHUHDV5XOHDVLQWHUSUHWHGE\ 'DXEHUWLVWUXO\DPHDVXUHRITXDOLILFDWLRQDVLWLVGLUHFWHG 3ODLQWLII DOVR FKDOOHQJHV WKH GLVWULFW FRXUWjV KROGLQJ WKDW DW WKH VFLHQFH DQG PHWKRGRORJ\ EHKLQG WKH ZLWQHVVjV 0LWWHPH\HUjVDIILGDYLWVZHUHLQVXIILFLHQWWRFUHDWHDJHQXLQH WHVWLPRQ\DQGLVWKHUHIRUHDSURFHGXUDOLVVXH7KXVZHVHH LVVXH RI GLVSXWHG IDFW 0LWWHPH\HUjV DIILGDYLWV DOOHJH WZR QRUHDVRQZK\WKHWZRUXOHVFDQQRWZRUNLQWDQGHPEHFDXVH VHSDUDWH DFWV RU RPLVVLRQV WKDW FRQVWLWXWHG PHGLFDO WKH\DUHQRWLQGLUHFWFRQIOLFW6HH5RELQ.XQGLV&UDLJ:KHQ PDOSUDFWLFH 'U &KRSUD IDLOHG WR VXWXUH WKH VXUJLFDO 'DXEHUW*HWV(ULH0HGLFDO&HUWDLQW\DQG0HGLFDO([SHUW LQFLVLRQ DQGRU LPSURSHU SRVWVXUJLFDO FDUH E\ 7HVWLPRQ\ LQ )HGHUDO &RXUW 'HQY 8 / 5HY XQLGHQWLILHGHPSOR\HHVRI8QLYHUVLW\8URORJ\ SRVLWLQJWKDWVWDWHPHGLFDOFHUWDLQW\VWDQGDUGVDQG 5XOH DUH QRW LQ GLUHFW FRQIOLFW EHFDXVH VWDWH PHGLFDO 7KHGLVWULFWFRXUWUHMHFWHG0LWWHPH\HUjVDIILGDYLWDVIDLOLQJ FHUWDLQW\VWDQGDUGVLQJHQHUDODUHHVVHQWLDOO\VXEVWDQWLYHWKDW WRVHWIRUWKZLWKVSHFLILFLW\IDFWVVXIILFLHQWWRFUHDWHDJHQXLQH LVmLPSRVHFHUWDLQW\VWDQGDUGVWRHQVXUHWKDWWKHFRQFOXVLRQ LVVXHRIIDFWIRUWULDODVUHTXLUHGE\)HG5&LY3H7KH DFWXDOO\PHHWVWKHFRQILGHQFHWKUHVKROGlDQG5XOHmVHHNV ORZHUFRXUWKHOGWKDW0LWWHPH\HUIDLOHGWRVSHFLILFDOO\LQIRUP WR HQVXUH WKDW H[SHUW WHVWLPRQ\ LV EDVHG RQ FUHGLEOH DQG WKHFRXUWDVWRKRZWKHGHYLDWLRQIURPWKHVWDQGDUGRIFDUH UHOLDEOH VFLHQFHWKDW WKH H[SHUW FDQ UHDFK WKH FRQFOXVLRQ RFFXUUHGDQGZKRVSHFLILFDOO\FRPPLWWHGWKHGHYLDWLRQ7KH VWDWHGWKURXJKSURSHUVFLHQWLILFPHWKRGRORJ\l7KXVLID GLVWULFWFRXUWDOVRUHMHFWHG'U0LWWHPH\HUjVRSLQLRQEHFDXVH ZLWQHVVLVGHHPHGFRPSHWHQWWRWHVWLI\WRWKHVXEVWDQWLYHLVVXH LWZDVPHUHO\FRQGLWLRQDOWKDWLVKHDOOHJHGWKDW'U&KRSUD LQWKHFDVHVXFKDVWKHVWDQGDUGRIFDUHKLVRUKHUWHVWLPRQ\ KDGGHYLDWHGIURPWKHVWDQGDUGRIFDUHmLIlKHKDGIDLOHGWR VKRXOG WKHQ EH VFUHHQHG E\ 5XOH WR GHWHUPLQH LI LW LV VXWXUHWKHDQWHULRUYDJLQDOZDOO RWKHUZLVHDGPLVVLEOHH[SHUWWHVWLPRQ\:HWKHUHIRUHILQGQR FRQIOLFWEHWZHHQ7HQQ&RGH$QQEDQG)HG5 3ODLQWLIIFRQWHQGVWKDWWKHGHSRVLWLRQWHVWLPRQ\RI0U/HJJ UHVROYHVDQ\REMHFWLRQWKDW0LWWHPH\HUjVRSLQLRQLVPHUHO\ FRQGLWLRQDO RQ WKH LVVXH RI ZKHWKHU 'U &KRSUD IDLOHG WR SODLQWLII XQGHU WKH DSSURSULDWH VWDQGDUG RI FDUHl +DQVRQ Y 3DUNVLGH VXWXUHWKHDQWHULRUYDJLQDZDOOEHFDXVH0U/HJJWHVWLILHGWKDW 6XUJHU\ &WU )G Q WK &LU m%HFDXVH QHLWKHU SDUW\ KDV UDLVHG WKH LVVXH RI 'U 2j'D\jV FRPSHWHQF\ DV DQ H[SHUW ZH DJDLQ GHFOLQH WR FRQVLGHUl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
Document Info
Docket Number: 00-6075
Filed Date: 4/3/2002
Precedential Status: Precedential
Modified Date: 3/3/2016