Esparza v. Mitchell

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†$m7KH RIIHQVH>RIPXUGHU@ZDVFRPPLWWHGZKLOHWKHRIIHQGHUZDV FRPPLWWLQJUREEHU\DQGZDVWKHSULQFLSDORIIHQGHU LQWKHFRPPLVVLRQRIWKHDJJUDYDWHGPXUGHUl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mDJJUDYDWLQJFLUFXPVWDQFHVlDV LQWKLVFDVH,ZRXOGUHYHUVHWKHGLVWULFWFRXUWjVSDUWLDOJUDQW 2KLR KDV GRQH  &KLHI sXVWLFH 5HKQTXLVWjV RSLQLRQ LQ RIWKHZULWRIKDEHDVFRUSXV /RZHQILHOGY3KHOSV86FRQFLVHO\ VXPPDUL]HVWKHUHTXLUHPHQWVRIWKH(LJKWK$PHQGPHQWLQ ,DOVRREMHFWWRWKHPDMRULW\jVFRQFOXVLRQWKDWWKHUHZDVQR WKLVUHVSHFW LQHIIHFWLYHDVVLVWDQFHRIFRXQVHOEDVHGRQFRXQVHOjVIDLOXUHWR UHDG WKH LQGLFWPHQW VLQFH m>L@W PD\ KDYH EHHQ FRXQVHOjV 7R SDVV FRQVWLWXWLRQDO PXVWHU D FDSLWDO VHQWHQFLQJ VWUDWHJ\WROHDYHWKHHUURULQSODFHl0DM2SDW,GRQRW VFKHPH PXVW mJHQXLQHO\ QDUURZ WKH FODVV RI SHUVRQV WKLQNMXGJHVRIWKLV&RXUWVKRXOGFRXQWHQDQFHVWUDWHJLFDOO\ HOLJLEOHIRUWKHGHDWKSHQDOW\DQGPXVWUHDVRQDEO\MXVWLI\ SODFHGHUURUVE\RIILFHUVRIWKHFRXUW WKH LPSRVLWLRQ RI D PRUH VHYHUH VHQWHQFH RQ WKH GHIHQGDQWFRPSDUHGWRRWKHUVIRXQGJXLOW\RIPXUGHUl ,UHVSHFWIXOO\GLVVHQW =DQWY6WHSKHQV866&W 8QGHUWKHFDSLWDOVHQWHQFLQJODZVRIPRVW6WDWHVWKHMXU\ LVUHTXLUHGGXULQJWKHVHQWHQFLQJSKDVHWRILQGDWOHDVW RQH DJJUDYDWLQJ FLUFXPVWDQFH EHIRUH LW PD\ LPSRVH GHDWK%\GRLQJVRWKHMXU\QDUURZVWKHFODVVRISHUVRQV HOLJLEOHIRUWKHGHDWKSHQDOW\DFFRUGLQJWRDQREMHFWLYH OHJLVODWLYH GHILQLWLRQ  =DQW VXSUD  86 DW  m>6@WDWXWRU\ DJJUDYDWLQJ FLUFXPVWDQFHV SOD\ D FRQVWLWXWLRQDOO\ QHFHVVDU\ IXQFWLRQ DW WKH VWDJH RI OHJLVODWLYH GHILQLWLRQ  WKH\ FLUFXPVFULEH WKH FODVV RI SHUVRQV HOLJLEOH IRU WKH GHDWK SHQDOW\l  &LWDWLRQV RPLWWHG ([FXVLQJ WKH WULDO MXGJHjV IDLOXUH WR FRPSO\ ZLWK WKH VWDWXWRU\SURYLVLRQVUHIHUUHGWRDERYHWKHVWDWHFRXUWVRQ WKHLURZQLQLWLDWLYHDIWHUWKHMXU\WULDODQGYHUGLFWIRXQGWKH SHWLWLRQHU(VSDU]DJXLOW\RIWKHDJJUDYDWLQJFLUFXPVWDQFHWKDW PDGH KLP HOLJLEOH IRU WKH GHDWK SHQDOW\ LH EHLQJ WKH mSULQFLSDO RIIHQGHUl LQ FRPPLWWLQJ DQ DJJUDYDWHG PXUGHU ZKLOH FRPPLWWLQJ D UREEHU\  7KH MXU\ LWVHOI ZDV QHYHU LQIRUPHGRIWKHDJJUDYDWLQJFLUFXPVWDQFHVUHTXLUHGQRUGLG LWILQGWKDWVXFKDFLUFXPVWDQFHH[LVWHG7KHSULPDU\TXHVWLRQ LVZKHWKHUWKH6WDWHYLRODWHGWKH(LJKWK$PHQGPHQWDVZHOO DVVWDWHODZZKHQLWIDLOHGWRHLWKHU FKDUJH(VSDU]DLQWKH LQGLFWPHQWZLWKWKHDJJUDYDWHGFLUFXPVWDQFHIRUZKLFKWKH  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  7KHPDMRULW\DOVRFLWHV3UHVQHOOY*HRUJLD86 GHDWK SHQDOW\ ZDV LPSRVHG RU LQVWUXFW WKH MXU\ RQ WKH SHUFXULDP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jVSURRIVKRZHGWKDWRQWKH VSHFLI\LQLWVYHUGLFWZKLFKRIIHQVHLWKDGIRXQGDQGWKHUH HYHQLQJ RI )HEUXDU\   D PDVNHG PDQ HQWHUHG WKH ZDVQRMXU\ILQGLQJRIIRUFLEOHUDSHDWWKHSHQDOW\SKDVH7KH ,VODQG9DULHW\&DUU\RXWLQ7ROHGR2KLRDQGDSSURDFKHGWKH *HRUJLD 6XSUHPH &RXUW XSKHOG WKH WKLUG GHDWK SHQDOW\ WZR VWRUH HPSOR\HHV 0HODQLH *HUVFKXOW] DQG sDPHV LPSRVHGE\WKHMXU\LQVSLWHRIWKHODFNRIDMXU\ILQGLQJRQ %DUDLOORX[  3RLQWLQJ D VPDOO EODFN KDQGJXQ DW WKHP KH IRUFLEOH UDSH RQ WKH JURXQGV WKDW HYLGHQFH LQ WKH UHFRUG RUGHUHG*HUVKXOW]WRRSHQWKHFDVKUHJLVWHU:KLOHVKHZDV VXSSRUWHGWKHFRQFOXVLRQWKDWWKHSHWLWLRQHUZDVJXLOW\RIWKDW GRLQJ WKLV %DUDLOORX[ IOHG WKH VWRUH WKURXJK D UHDU GRRU RIIHQVHZKLFKLQWXUQHVWDEOLVKHGWKHHOHPHQWRIERGLO\KDUP HQWHULQJWKHDWWDFKHGKRPHRIWKHVWRUHjVRZQHU:KLOHKH QHFHVVDU\WRPDNHWKHWKLUGFDSLWDOFULPHmNLGQDSSLQJZLWK ZDVDOHUWLQJWKHRZQHURIWKHUREEHU\KHKHDUGDVKRW+H ERGLO\KDUPDJJUDYDWHGVRGRP\lDVXIILFLHQWO\DJJUDYDWLQJ UHWXUQHGWRWKHVWRUHDQGIRXQG*HUVKXOW]O\LQJRQWKHIORRU FLUFXPVWDQFHWRMXVWLI\WKHGHDWKVHQWHQFH,GDW7KH VKRWRQFHLQWKHQHFNDQGWKHFDVKUHJLVWHURSHQDQGPLVVLQJ 8QLWHG6WDWHV6XSUHPH&RXUWUHYHUVHGJLYHQWKHDEVHQFHRI DSSUR[LPDWHO\*HUVKXOW]GLHGVKRUWO\WKHUHDIWHU D MXU\ ILQGLQJ RI IRUFLEOH UDSH  +RZHYHU LQ WKDW FDVH WKH 6XSUHPH&RXUWGLGQRWFRQVLGHUZKHWKHUWKHKDUPOHVVHUURU $W WULDO D \HDU ODWHU ERWK (VSDU]DjV VLVWHU DQG D IHOORZ GRFWULQHPLJKWEHDSSOLFDEOH LQPDWHWHVWLILHGWKDWKHFRQIHVVHGWRWKHNLOOLQJDQGWKHVROH ZLWQHVV WR WKH UREEHU\ sDPHV %DUDLOORX[ WHVWLILHG WKDW WKH )XUWKHUPRUH3UHVQHOOLVGLVWLQJXLVKDEOHEHFDXVHKHUHDV, PDVNHGUREEHUZDVVKRUWDQGKXVN\DVZDV(VSDU]DDQGWKDW KDYHQRWHGWKHMXU\QHFHVVDULO\IRXQGWKDW(VSDU]DZDVWKH KH ZDV ZHDULQJ D GDUN EOXH MDFNHW VLPLODU WR WKH MDFNHW DFWXDO NLOOHU DQG WKHUHIRUH WKH SULQFLSDO RIIHQGHU  7KXV (VSDU]DjV VLVWHU VDLG (VSDU]D ZRUH WKDW QLJKW  7KH MXU\ XQOLNH 3UHVQHOO WKH MXU\ LQ WKLV FDVH DFWXDOO\ PDGH D UHWXUQHGDYHUGLFWRIJXLOW\RQERWKFRXQWVODWHLQWKHGD\RQ ILQGLQJoDOEHLW LPSOLFLWO\oRQ DQ HOHPHQW RI WKH RIIHQVH 7KXUVGD\0D\$PLWLJDWLRQKHDULQJZDVKHOGRQ QHFHVVDU\ WR PDNH  (VSDU]Dj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jV WULDO KLV DSSHDOV DQG KLV VWDWH SRVW LVDSSOLFDEOH,WKHUHIRUHGRQRWILQGWKDWWKH2KLR&RXUWRI FRQYLFWLRQSURFHHGLQJVDVXEVWDQWLDOYROXPHRIH[FXOSDWRU\ HYLGHQFHZDVUHYHDOHGWKDWZDVQRWWXUQHGRYHUE\SURVHFXWRUV  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  DWWULDO7KLVHYLGHQFHWHQGHGWRSURYHWKDWsRHsDVVRZDVD ,QP\YLHZWKHIDLOXUHWRSURSHUO\LQVWUXFWWKHMXU\XQGHU SDUWLFLSDQWLQWKHFULPHDQGWKDW(VSDU]DGLGQRWDFWDORQH 6HFWLRQ$LQYROYHGDWULDOHUURUmZKLFKRFFXUUHG GXULQJ WKH SUHVHQWDWLRQ RI WKH FDVH WR WKH MXU\l WKDW FRXOG 1R LQIRUPDWLRQ FRQFHUQLQJ sDVVR ZDV SURYLGHG WR WKH WKHUHIRUHEHTXDQWLWDWLYHO\DVVHVVHGDJDLQVWWKHRWKHUHYLGHQFH GHIHQVHEHIRUHWULDO,QLQIRUPDWLRQGLVFRYHUHGDVDUHVXOWRI WRGHWHUPLQHLIWKHHUURUZDVKDUPOHVVEH\RQGDUHDVRQDEOH D GLVFRYHU\ UHTXHVW HQIRUFHG E\ WKH GLVWULFW FRXUW EHORZ GRXEW)XOPLQDQWH86DW0RUHLPSRUWDQWO\ (VSDU]D OHDUQHG WKDW WZR LQGLYLGXDOV &KDUOHV +DOO DQG ,GRQRWWKLQNLWXQUHDVRQDEOHIRUWKH2KLR&RXUWRI$SSHDOV 6WHSKHQ %LOOLQJV ERWK VHSDUDWHO\ UHSRUWHG WR WKH 7ROHGR WR KDYH GRQH VR EHFDXVH (VSDUD]DjV WULDO VWLOO VHUYHG DV D 3ROLFH'HSDUWPHQWWKDWWKH\KDGVHHQD&DXFDVLDQPDOHDQG UHOLDEOHYHKLFOHIRUWKHGHWHUPLQDWLRQWKDWKHZDVJXLOW\RI D+LVSDQLFPDOHLQWKH,VODQG9DULHW\&DUU\RXWWKHQLJKWRIWKH FDSLWDOPXUGHU%\WKHVDPHWRNHQ,GRQRWWKLQNWKHVWDWH KRPLFLGH+DOODQG%LOOLQJVERWKUHSRUWHGWKDWWKH&DXFDVLDQ FRXUWjVFRQFOXVLRQWKDWWKHHUURUZDVLQIDFWKDUPOHVVLQOLJKW PDQZDVGULYLQJD0RQWH&DUOR+DOOUHSRUWHGWKDWKHVDZWKH RIWKHmPDQLIHVWZHLJKWRIWKHHYLGHQFHlZDVDQXQUHDVRQDEOH 0RQWH&DUORFLUFOHWKH,VODQG9DULHW\&DUU\RXWWZHOYHWLPHV DSSOLFDWLRQRIWKHKDUPOHVVHUURUGRFWULQHHLWKHU ,QIRUPDWLRQLPSOLFDWLQJsDVVRZDVDOVRGLVFRYHUHGDVDUHVXOW RI GLVWULFW FRXUWRUGHUHG UHOHDVH RI WLSV FROOHFWHG E\ 7KHPDMRULW\DOVRVWDWHVWKDWHYHQLIKDUPOHVVHUURUDQDO\VLV &ULPHVWRSSHUV D SULYDWHO\ IXQGHG SURJUDP WKDW ZRUNV LQ ZHUH DSSURSULDWH mZH DUH IDFHG ZLWK WKH SUREOHP WKDW FRQMXQFWLRQZLWKORFDOODZHQIRUFHPHQWWRJDWKHULQIRUPDWLRQ VXSSUHVVHG HYLGHQFH GLVFRYHUHG IRU WKH ILUVW WLPH LQ WKH UHJDUGLQJXQVROYHGFULPHV7ZRGD\VDIWHUWKHKRPLFLGHDQ 'LVWULFW &RXUW LQ WKLV SURFHHGLQJ UDLVHV D TXHVWLRQ DERXW XQLGHQWLILHG FDOOHU VWDWHG WKDW KH KDG RYHUKHDUG sRH sDVVR ZKHWKHU(VSDU]DDFWHGDORQHl0DM2SDW7KHUHFRUGLQ WDONLQJ DERXW WKH PXUGHU  7KH FDOOHU KXQJ XS EHIRUH DQ\ WKH GLVWULFW FRXUW UHIOHFWV WKDW WKH SURVHFXWLRQ ZLWKKHOG DGGLWLRQDOLQIRUPDWLRQZDVREWDLQHG HYLGHQFH E\ WZR ZLWQHVVHV LQGLFDWLQJ WKDW WKHUH ZHUH WZR SDUWLFLSDQWVLQWKHFULPH(VSDU]DDQGsRHsDVVR%DVHGRQ 3ULRU WR WULDO WKH JRYHUQPHQW H\HZLWQHVV ,VODQG 9DULHW\ WKLV HYLGHQFH WKH PDMRULW\ FRQFOXGHV WKDW m>W@KH EDVLV RQ &DUU\RXWVWRUHFOHUNsDPHV%DUDLOORX[SURYLGHGDVHULHVRI ZKLFK 2KLR MXGJHV GLUHFWHG D YHUGLFW RQ WKH µSULQFLSDO LQFRQVLVWHQWGHVFULSWLRQVRIWKHDVVDLODQWWRWKH7ROHGRSROLFH RIIHQGHUjDJJUDYDWRUoWKDWWKHUHZDVRQO\RQHSDUWLFLSDQWLQ GHSDUWPHQW  sXVW GD\V DIWHU WKH UREEHU\ DQG KRPLFLGH WKHFULPHoDSSHDUVQRZWREHXQWUXHlDQGWKDWmWKHEDVLVIRU RFFXUUHG %DUDLOORX[ SURYLGHG WZR VOLJKWO\ GLIIHUHQW WKH6WDWHjVKDUPOHVVHUURUDUJXPHQWLQWKH6WDWHFRXUWVKDV GHVFULSWLRQVRIWKHDVVDLODQWERWKJHQHUDOO\GHVFULELQJDZKLWH EHHQXQGHUPLQHGE\WKHQHZHYLGHQFHl0DM2SDW, PDOHLQKLVPLGWKLUWLHVDURXQG WDOODQGZHLJKLQJDURXQG ZRXOG DJUHH ZLWK WKH PDMRULW\ WKDW WKLV HYLGHQFH ZRXOG SRXQGV+HGLGQRWPHQWLRQDVNLPDVN(VSDU]DZDV FRPSHODILQGLQJWKDWWKHHUURUZDVQRWKDUPOHVVKHUHH[FHSW \HDUVROGDWWKHWLPHRIWKHLQFLGHQW WDOO+LVSDQLFDQG WKDW DV WKH PDMRULW\ QRWHV HOVHZKHUH LQ LWV RSLQLRQ LQ KHDY\VHW LQ ERG\ W\SH  7ZR PRQWKV DIWHU WKH UREEHU\ FRQQHFWLRQ ZLWK (VSDU]DjV %UDG\ FODLP WKDW m>H@YHQ DIWHU %DUDLOORX[GHVFULEHGWKHSHUSHWUDWRUDVHLWKHU&DXFDVLDQRU WKLVKRZHYHUWKHUHUHPDLQVRWKHUVLJQLILFDQWHYLGHQFHDJDLQVW +LVSDQLF DQG mKXVN\l  +H SURYLGHG QR GHVFULSWLRQ RI WKH (VSDU]DLQSDUWLFXODUWKHWHVWLPRQ\RIWZRLQGLYLGXDOVWKDW DVVDLODQWjV FORWKLQJ GXULQJ WKDW LQWHUYLHZ  %DUDLOORX[jV (VSDU]DDGPLWWHGWRVKRRWLQJ0HODQLH*HUVKXOW]l0DM2S GHVFULSWLRQ FRQWLQXHG WR FKDQJH RYHU WLPH DQG DW WULDO KH DW,QVKRUW,GRQRWWKLQNWKDWLWFDQEHVDLGWKDWWKH2KLR GHVFULEHGWKHSHUSHWUDWRUDVDODUJHKHDY\VHWPDQZLWKDODUJH FRXUWjV DSSOLFDWLRQ RI WKH KDUPOHVV HUURU GRFWULQH ZDV DQ QHFNZHDULQJDJUHHQVNLPDVNZLWKJROGVWULSHVDQGDmSXII\l XQUHDVRQDEOHDSSOLFDWLRQRI6XSUHPH&RXUWSUHFHGHQWWRWKH EOXH MDFNHW  1RQH RI WKH LQFRQVLVWHQW GHVFULSWLRQV ZHUH IDFWVRIWKLVFDVHHYHQLQOLJKWRIWKHQHZHYLGHQFH GLVFORVHGWRWKHGHIHQVHFRXQVHOEHIRUHWULDO  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  8OWLPDWHO\KRZHYHULWLVWKHGLVDJUHHPHQWLWVHOIRYHUWKH 2Q GLUHFW DSSHDO IURP WKH YHUGLFW RI GHDWK WKH 2KLR DSSURSULDWH DQDORJ\oWR 1HGHU RU 6XOOLYDQo WKDW LV PRVW 6XSUHPH&RXUWIRXQGQRUHYHUVLEOHHUURULQWKHWULDOZLWKWZR UHOHYDQWKHUHEHFDXVHXQGHUWKH$('3$ZHDUHQRWWRIDXOW RIWKHVHYHQMXVWLFHVGLVVHQWLQJ6WDWHY(VSDU]D2KLR6W WKHVWDWHFRXUWjVGHFLVLRQXQOHVVZHILQGLWFRQWUDU\WRRUDQ G   1(G    ,Q VWDWH SRVWFRQYLFWLRQ XQUHDVRQDEOHDSSOLFDWLRQRI6XSUHPH&RXUWSUHFHGHQW$VWKH SURFHHGLQJV WKH 2KLR &RXUW RI $SSHDOV LQ JHQHUDO IRUHJRLQJ GLVFXVVLRQ UHYHDOV WKH VWDWH FRXUWj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sXO\7KH DVIRXQGE\WKH2KLR&RXUWRI$SSHDOVWKHIURQWSDJHRIWKH 2KLR6XSUHPH&RXUWGLVPLVVHGWKHDSSHDOZLWKRXWRSLQLRQ LQGLFWPHQW VWDWHV WKDW (VSDU]D ZDV FKDUJHG ZLWK 6WDWH Y (VSDU]D  2KLR 6W G   1(G  m$**5$9$7(' 085'(5o† %oZLWK D JXQ  VSHFLILFDWLRQ$**5$9$7('52%%(5 @l+HUHWKHMXU\ZDVLQVWUXFWHGFRPSOHWHO\ SURFHGXUH IROORZHG E\ WKH 6WDWH LQ VHQWHQFLQJ (VSDU]D WR DQGSURSHUO\RQWKHHOHPHQWVRIDJJUDYDWHGPXUGHUmGHILQHG GHDWK YLRODWHG WKH OLQH RI 6XSUHPH &RXUW FDVHV IROORZLQJ DVSXUSRVHO\FDXVLQJWKHGHDWKRIDQRWKHUZKLOHFRPPLWWLQJ )XUPDQY*HRUJLD86HVWDEOLVKLQJQHZ $JJUDYDWHG5REEHU\l,QDGGLWLRQWKHMXU\ZDVLQVWUXFWHG WKDWLILWIRXQG(VSDU]DJXLOW\RI$JJUDYDWHG0XUGHUmLWLV WKHQ\RXUGXW\WRGHOLEHUDWHIXUWKHUDQGGHFLGHWZRDGGLWLRQDO  7KH (LJKWK $PHQGPHQW LVVXH ZDV FOHDUO\ UDLVHG LQ WKH 2KLR FRXUWV IDFWXDOTXHVWLRQVFDOOHG6SHFLILFDWLRQVl$VWRWKHVHFRQG )RU H[DPSOH (VSDU]DjV ILUVW DVVLJQPHQW RI HUURU LQ WKH &RXUW RI $SSHDOV VSHFLILFDWLRQWKHWULDOFRXUWLQVWUXFWHGWKHMXU\WKDWWKHLVVXH VDLG IRU GHFLVLRQ ZDV mZKHWKHU WKH 6WDWH KDV SURYHG EH\RQG D UHDVRQDEOHGRXEWWKDWWKHRIIHQVHRI$JJUDYDWHG0XUGHUZDV $33(//$17 (63$5=$j6 '($7+ 6(17(1&( ,6 92,' $1' 9,2/$7(6 7+( (,*+7+ $1' )2857((17+ FRPPLWWHGZKLOHWKH'HIHQGDQWZDVFRPPLWWLQJ$JJUDYDWHG $0(1'0(176 72 7+( 81,7(' 67$7(6 5REEHU\l7KH6WDWHSURFHHGHGRQWKHWKHRU\WKDWRQHSHUVRQ &2167,787,21 FRPPLWWHGWKHPXUGHUDQGUREEHU\7KXVLQRUGHUWRILQG (VSDU]DJXLOW\EH\RQGDUHDVRQDEOHGRXEWWKHMXU\PXVWKDYH 7KH &RXUW GHVFULEHG WKH DUJXPHQW DV IROORZV IRXQG WKDW (VSDU]D mDFWXDOO\ NLOOHGl 0HODQLH *HUVFKXOW] 8QGHU KLV ILUVW DVVLJQPHQW RI HUURU (VSDU]D FRQWHQGV WKDW KLV m3ULQFLSDORIIHQGHUlKDVEHHQGHILQHGXQGHU2KLRODZDVmWKH GHDWK VHQWHQFH LV YRLG LQ WKDW WKH VWDWH IDLOHG WR DOOHJH DQG WKH DFWXDONLOOHUl6WDWHY&KLQQ1(G2KLR MXU\ IDLOHG WR ILQG DOO RI WKH HOHPHQWV RI D FDSLWDO VSHFLILFDWLRQ 7KXVDOWKRXJKWKHMXU\ZDVQRWH[SOLFLWO\LQVWUXFWHG ,Q SDUWLFXODU DSSHOODQW DVVHUWV WKDW WKH LQGLFWPHQW IDLOHG WR DOOHJH WRPDNHDILQGLQJXQGHU6HFWLRQ$WKDW(VSDU]D D GHDWK SHQDOW\ VSHFLILFDWLRQ EHFDXVH LW GLG QRW DOOHJH WKDW KH ZDV ZDV mWKH SULQFLSDO RIIHQGHU LQ WKH FRPPLVVLRQ RI WKH HLWKHU WKH SULQFLSDO RIIHQGHU RU WKDW KH FRPPLWWHG WKH DJJUDYDWHG PXUGHU ZLWK SULRU FDOFXODWLRQ DQG GHVLJQ $SSHOODQW IXUWKHU DJJUDYDWHGPXUGHUlLWQHFHVVDULO\KDGWRPDNHWKDWILQGLQJLQ DVVHUWV WKDW WKH MXU\ LQVWUXFWLRQV DW WKH JXLOW SKDVH RI KLV WULDO RUGHU WR ILQG (VSDU]D JXLOW\ RI WKH DJJUDYDWHG PXUGHU RI EHORZ ZHUH VLPLODUO\ GHIHFWLYH *HUVFKXOW]RQWKHIDFWVEHIRUHLW  :/  DW   (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  (LJKWK$PHQGPHQWVWDQGDUGVIRUWKHVWDWHVWRIROORZLQGHDWK 7KHPDMRULW\GUDZVDGLIIHUHQWFRQFOXVLRQDQDORJL]LQJWR FDVHV7KH&RXUWEDVHGLWVUXOLQJRQWKHIDLOXUHRIWKH2KLR WKH UXOLQJ LQ 6XOOLYDQ Y /RXLVLDQD  86   FRXUWVWRIROORZWKHLURZQVWDWXWRU\UXOHVGHVLJQHGWRUHQGHU 6XOOLYDQKHOGWKDWDGHIHFWLYHmUHDVRQDEOHGRXEWlLQVWUXFWLRQ 2KLRjV GHDWK SHQDOW\ VFKHPH FRQVWLWXWLRQDO XQGHU WKHVH LQYLRODWLRQRIWKHGHIHQGDQWjV)LIWKDQG6L[WK$PHQGPHQW (LJKWK$PHQGPHQWFDVHV ULJKWV LV QRW VXEMHFW WR KDUPOHVV HUURU DQDO\VLV EHFDXVH LW mYLWLDWHVDOOWKHMXU\jVILQGLQJVl86DWDQGUHVXOWV +HUHWKHWULDOMXGJHOHGGRZQWKLVSDWKE\WKHGHIHFWLYH LQ mFRQVHTXHQFHV WKDW DUH QHFHVVDULO\ XQTXDQWLILDEOH DQG LQGLFWPHQW FKDUJHG WKH MXU\ DV WR RQH RIIHQVH n LQGHWHUPLQDWHl  ,G DW   ,Q 1HGHU WKH 6XSUHPH &RXUW DJJUDYDWHGPXUGHUnEXWVHQWHQFHG(VSDU]DDVLIKHKDG UHMHFWHGWKHGHIHQGDQWjVDUJXPHQWWKDW6XOOLYDQSUHFOXGHGWKH EHHQFRQYLFWHGRIDQHQWLUHO\VHSDUDWHRIIHQVHnFDSLWDO DSSOLFDWLRQ RI KDUPOHVV HUURU ZKHUH DQ HUURQHRXV MXU\ PXUGHU$VWKH6XSUHPH&RXUWVDLGLQ6XOOLYDQY LQVWUXFWLRQRPLWVWKHHOHPHQWRIPDWHULDOLW\EHFDXVHWKHMXU\ /RXLVLDQD86>@mWRK\SRWKHVL]H FRXOGQRWUHQGHUDmFRPSOHWHYHUGLFWlRQHYHU\HOHPHQWRIWKH D JXLOW\ YHUGLFW WKDW ZDV QHYHU LQ IDFW UHQGHUHG n QR RIIHQVH1HGHU86DW7KHPDMRULW\GLVWLQJXLVKHV PDWWHU KRZ LQHVFDSDEOH WKH ILQGLQJ WR VXSSRUW WKDW 1HGHURQWKHJURXQGVWKDWmPDWHULDOLW\lZDVDPLQRUHOHPHQW YHUGLFW PLJKW EH n ZRXOG YLRODWH WKH MXU\ WULDO LQ D WD[ IUDXG FDVH DQG IXUWKHU QRWHV WKDW m>W@KHUH LV QR JXDUDQWHHl VXJJHVWLRQ LQ WKH &KLHI sXVWLFHjV RSLQLRQ LQ 1HGHU WKDW KDUPOHVVHUURUZRXOGSURWHFWDGLUHFWHGYHUGLFWIRUWKH6WDWH 7KLVSRVWKRFGHWHUPLQDWLRQE\DQDSSHOODWHFRXUWRI RQDFUXFLDOILQGLQJXQGHUWKH(LJKWK$PHQGPHQWLQDFDSLWDO ZKDW WKH MXU\ ZRXOG KDYH GRQH LI WKH FDSLWDO FDVHl0DM2SDW VSHFLILFDWLRQV TXHVWLRQ KDG EHHQ SUHVHQWHG WR LW LV SDUWLFXODUO\ WURXEOLQJ LQ OLJKW RI WKH FDSLWDO VFKHPH DW +RZHYHU 1HGHU LWVHOI ZDV QRW EDVHG RQ WKH IDFW WKDW LVVXHKHUH$VGLVFXVVHGODWHULQWKLVRSLQLRQWKH2KLR PDWHULDOLW\ZDVDPLQRUHOHPHQWRIWKHRIIHQVHDWLVVXH:KDW 6XSUHPH&RXUWWKLV&RXUWDQGWKH6L[WK&LUFXLWKDYHDOO WKH1HGHU&RXUWGLGVD\LVWKDWm>W@KHHUURUDWLVVXHKHUHoDMXU\ UHOLHGXSRQWKHH[LVWHQFHRIWKHFDSLWDOVSHFLILFDWLRQVVHW LQVWUXFWLRQRPLWVDQHOHPHQWRIWKHRIIHQVHoGLIIHUVPDUNHGO\ IRUWK LQ 2KLR 5HY &RGH † $ WR FRQFOXGH IURP WKH FRQVWLWXWLRQDO YLRODWLRQV ZH KDYH IRXQG WR GHI\ WKDWWKH2KLRFDSLWDOVFKHPHKDVVXIILFLHQWO\QDUURZHG KDUPOHVVHUURUUHYLHZl1HGHU86DW1RWLQJWKDW WKHFODVVRISHUVRQVVXEMHFWWRWKHGHDWKSHQDOW\WRUHQGHU m>Z@H KDYH RIWHQ DSSOLHG KDUPOHVVHUURU DQDO\VLV WR FDVHV WKDWVFKHPHFRQVWLWXWLRQDOXQGHU=DQWY6WHSKHQV LQYROYLQJ LPSURSHU LQVWUXFWLRQV RQ D VLQJOH HOHPHQW RI WKH 86 RIIHQVHlWKH&RXUWSURFHHGHGWRGLVFXVVLWVSUHFHGHQWRQWKH VXEMHFW,GDW7KH&RXUWFRQFOXGHGWKDWZKLOHm>L@WZRXOG 7KXVWKH2KLR6XSUHPH&RXUWKDVHPSKDVL]HGWKDWD QRWEHLOORJLFDOWRH[WHQGWKHUHDVRQLQJRI6XOOLYDQlWRWKH GHIHQGDQWPD\QRWEHVXEMHFWWRWKHGHDWKSHQDOW\IRUD IDLOXUHWRLQVWUXFWRQDQHOHPHQWRIWKHFULPHmWKHPDWWHULV PHUHYLRODWLRQRI2KLR5HY&RGH†%EHIRUH QRWUHVQRYDXQGHURXUFDVHODZl,GDW WKH GHDWK SHQDOW\ FDQ EH LPSRVHG WKH VWDWH mPXVW DGGLWLRQDOO\ SURYH WKDW WKH RIIHQGHU ZDV WKH SULQFLSDO RIIHQGHULQWKHFRPPLVVLRQRIWKHDJJUDYDWHGPXUGHURU LIWKHRIIHQGHUZDVQRWWKHSULQFLSDORIIHQGHUWKDWWKH DJJUDYDWHGPXUGHUZDVFRPPLWWHGZLWKSULRUFDOFXODWLRQ  $W WKH ULVN RI VRXQGLQJ XQGXO\ UKHWRULFDO ZK\ ZRXOG WKHUH EH" DQG GHVLJQl  6WDWH Y sHQNLQV  1(G  2KLR 1HGHU ZDV QRW D FDSLWDO FDVH $QG DV WKH PDMRULW\ ZHOO NQRZV WKH  FHUW GHQLHG  86   HPSKDVLV 6XSUHPH &RXUW DV LW LV FRQVWLWXWLRQDOO\ UHTXLUHG WR GR VSHDNV RQO\ WR WKH LVVXHV SURSHUO\ EHIRUH LW  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  5DWKHUWKHLVVXHLVZKHWKHUWKH6WDWHjVIDLOXUHWRIROORZWKDW DGGHG6HHDOVR6WDWHY%DUQHV1(G VFKHPHE\IDLOLQJWRSURSHUO\LQGLFWDQGLQVWUXFWWKHMXU\RQ 2KLRFHUWGHQLHG86mWKHWULDO WKHHOHPHQWRIFDSLWDOPXUGHUFRQVWLWXWHGFRQVWLWXWLRQDOHUURU FRXUWKDGWRILQGWKDW>WKHGHIHQGDQW@FRPPLWWHGPXUGHU RIDVWUXFWXUDOW\SHRULVVXEMHFWWRKDUPOHVVHUURUDQDO\VLV ZKLOHFRPPLWWLQJRUDWWHPSWLQJWRFRPPLW>DVSHFLILHG %RWKP\VHOIDQGWKHPDMRULW\VWUXJJOHZLWKWKHTXHVWLRQRI IHORQ\@ DQG IXUWKHU WKDW >WKH GHIHQGDQW@ ZDV WKH ZKHWKHUWKLVLVSXUHO\DYLRODWLRQRIWKH(LJKWK$PHQGPHQWRU SULQFLSDORIIHQGHURUWKDWWKHPXUGHUZDVSUHPHGLWDWHGl DYLRODWLRQRIWKH6L[WK$PHQGPHQWULJKWWRWULDOE\MXU\RU $QGIHGHUDOFRXUWV DVWKLVRQHGRHVKHUHKDYHUHOLHG ERWK7KHUHLVQRGLUHFW6XSUHPH&RXUWSUHFHGHQWWRUHVROYH XSRQWKLVLQWHUSUHWDWLRQRI2KLRjVFDSLWDOVFKHPHE\WKH WKLVTXHVWLRQVRZHFDQQRWDQDO\]HWKH2KLR&RXUWRI$SSHDOV KLJKHVWFRXUWLQWKHVWDWHDVVXSSRUWIRUWKHFRQFOXVLRQ GHFLVLRQXQGHUWKHmFRQWUDU\WRmFODXVHRIWKH$('3$ WKDW 2KLRjV FDSLWDO VFKHPH GRHV QDUURZ WKH FODVV RI SHUVRQVWRZKRPWKHGHDWKSHQDOW\FDQEHDSSOLHGDQG 7KHTXHVWLRQWKHQEHFRPHVZKHWKHUWKHVWDWHFRXUWjVUXOLQJ GRHVQRWXVHWKHSUHFLVHVDPHIDFWRUVERWKWRFRQYLFWIRU LV QRQHWKHOHVV DQ mXQUHDVRQDEOH DSSOLFDWLRQl RI FOHDUO\ DJJUDYDWHGPXUGHUDQGWRVXEMHFWRQHVRFRQYLFWHGWRWKH HVWDEOLVKHG )HGHUDO  ODZ  :LWKRXW D FOHDU DQVZHU RQ WKH GHDWKSHQDOW\6HHHJ6FRWWY0LWFKHOO)G VXEMHFW ZH PXVW H[WHQG E\ DQDORJ\  RWKHU 6XSUHPH &RXUW WK&LU GHFLVLRQV DGGUHVVLQJ WKH DSSURSULDWHQHVV RI KDUPOHVV HUURU DQDO\VLV,QP\YLHZLWLVQRWXQUHDVRQDEOHWRDQDORJL]HWR :KHUHWKHH[LVWHQFHRIWKHVSHFLILFDWLRQVXQGHU2KLR 6XSUHPH &RXUW SUHFHGHQW KROGLQJ WKDW RPLVVLRQV DQG 5HY&RGH†$DQGRIWKHVWDWHj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m8QOLNHVXFKGHIHFWVDVWKH IDLOHG WR LQVWUXFW WKH MXU\ WR ILQG DOO HOHPHQWV RI WKH FRPSOHWHGHSULYDWLRQRIFRXQVHORUWULDOEHIRUHDELDVHGMXGJH RIIHQVHRIFDSLWDOPXUGHUDQGEHFDXVHWKDWHUURULVQRW DQLQVWUXFWLRQWKDWRPLWVDQHOHPHQWRIWKHRIIHQVHGRHVQRW VXVFHSWLEOH WR D UHYLHZ IRU KDUPOHVV HUURU (VSDU]D LV QHFHVVDULO\UHQGHUDFULPLQDOWULDOIXQGDPHQWDOO\XQIDLURUDQ FRUUHFW WKDW LPSRVLWLRQ RI WKH GHDWK SHQDOW\ XSRQ KLP XQUHOLDEOHYHKLFOHIRUGHWHUPLQLQJJXLOWRULQQRFHQFHl,GDW ZRXOGEHXQFRQVWLWXWLRQDO  (VSDU]DY$QGHUVRQ1R&9DW1'2KLR 2FWIRRWQRWHVRPLWWHG 7KH TXHVWLRQ EHIRUH XV LV ZKHWKHU WKLV DQDO\VLV RI WKH  7KH GLVWULFW FRXUW VKDUHG LQ WKLV VWUXJJOH 7KH ORZHU FRXUWjV DQDO\VLV (LJKWK $PHQGPHQW UHTXLUHPHQWV LQ FDSLWDO FDVHV LV LV DQ DPDOJDP RI WKH )LIWK $PHQGPHQW ULJKW WR LQGLFWPHQW E\ JUDQG MXU\ HUURQHRXV DOEHLW HUURQHRXVO\ EHFDXVH WKLV ULJKW GRHV QRW H[WHQG WR VWDWH SURVHFXWLRQV WKH )RXUWHHQWK $PHQGPHQW ULJKW WR DGHTXDWH QRWLFH FLWLQJ ,,$QDO\VLV ,Q UH :LQVKLS   86   WKH 6L[WK $PHQGPHQW JXDUDQWHH RI $SSUHQGL WULDO E\ MXU\ FLWLQJ Y 1HZ sHUVH\  86   DQG WKH sXVWLFH 6FDOLD FRQFLVHO\ SRLQWHG RXW LQ KLV GLVVHQWLQJ (LJKWK $PHQGPHQW ULJKW WR EH VHQWHQFHG XQGHU D FDSLWDO VFKHPH WKDW VXIILFLHQWO\ QDUURZV WKH FODVV RI SHUVRQ VXEMHFW WR WKH GHDWK SHQDOW\ FLWLQJ RSLQLRQLQ$OPHQGDUH]7RUUHVY8QLWHG6WDWHV86 =DQW Y 6WHSKHQV  86    (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ   Q 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$OWKRXJKVWDWHGLQGLVVHQWLWVHHPVFOHDU 7KHSULPDU\FRQFHUQLQWKH(LJKWK$PHQGPHQWFRQWH[W WKDW D PDMRULW\ DQG SHUKDSV DOO RI WKH PHPEHUV RI WKH KDV EHHQ WKDW WKH VHQWHQFLQJ GHFLVLRQ EH EDVHG RQ WKH 6XSUHPH&RXUWDJUHHZLWKsXVWLFH6FDOLDRQWKLVSRLQW7KH IDFWV DQG FLUFXPVWDQFHV RI WKH GHIHQGDQW KLV DXWKRURIWKH&RXUWjVRSLQLRQLQ$OPHQGDUH]7RUUHVsXVWLFH EDFNJURXQG DQG KLV FULPH  6HH HJ 6SD]LDQR Y %UH\HUH[SUHVVHGWKHVDPHYLHZLQKLVFRQFXUULQJRSLQLRQLQ )ORULGD>86@=DQWY6WHSKHQV 5LQJY$UL]RQD6&WZKHQKHREVHUYHG >86@(GGLQJVY2NODKRPD mWKDW MXU\ VHQWHQFLQJ LQ FDSLWDO FDVHV LV PDQGDWHG E\ WKH 86/RFNHWWY2KLR86 (LJKWK$PHQGPHQWl,GDW,Q5LQJDPDMRULW\RIWKH SOXUDOLW\RSLQLRQ*UHJJY*HRUJLD PHPEHUVRIWKH&RXUWUHDFKHGWKH VDPHFRQFOXVLRQRQWKH  86   MRLQW RSLQLRQ RI 6WHZDUW EDVLVRIWKHMXU\WULDOJXDUDQWHHLQWKH6L[WK$PHQGPHQW 3RZHOODQG6WHYHQVss,QVFUXWLQL]LQJGHDWKSHQDOW\ SURFHGXUHVXQGHUWKH(LJKWK$PHQGPHQWWKH&RXUWKDV 7KH VDPH HVVHQWLDO SRLQW ZDV PDGH E\ &KLHI sXVWLFH HPSKDVL]HG WKH mWZLQ REMHFWLYHVl RI  mPHDVXUHG 5HKQTXLVW LQ WKH SRUWLRQ RI KLV RSLQLRQ IRU WKH &RXUW LQ FRQVLVWHQW DSSOLFDWLRQ DQG IDLUQHVV WR WKH DFFXVHGl /RZHQILHOGTXRWHGDERYH)XQGDPHQWDOSULQFLSOHVIURPERWK (GGLQJVVXSUDDWoj WKH'XH3URFHVV&ODXVHDQGWKH(LJKWK$PHQGPHQWDVWKH 'LVWULFW&RXUWKHOGLQLWVRSLQLRQTXRWHGDERYHDSSO\WRWKH &OHPRQV86DWVRPHFLWDWLRQVRPLWWHG IDFWVRIWKLVFDVHEHFDXVHWKHMXU\QHYHUIRXQGWKHVWDWXWRULO\ UHTXLUHGDJJUDYDWLQJFLUFXPVWDQFHZKLFKLQsXVWLFH6FDOLDjV 2KLR KDV VXFK D FDSLWDO VHQWHQFLQJ VFKHPH ZKLFK WKLV ZRUGVVXSSOLHVWKHmIDFWRUZKLFKPDNHV>WKH@FULPHDFDSLWDO &RXUWKDVIRXQGFRQVWLWXWLRQDO6HHHJ6FRWWY0LWFKHOO RIIHQVHl  7KLV HUURU LV XQTXHVWLRQDEO\ D YLRODWLRQ RI WKH  )G   WK &LU FHUW GHQLHG  86  (LJKWK$PHQGPHQW %XWWKHLVVXHLQWKLVFDVHLVQRWDVWKHPDMRULW\jV UHVRUW WR (LJKWK $PHQGPHQW MXULVSUXGHQFH PLJKW VXJJHVW sXVWLFH6FDOLDjVSRLQWLVUHLQIRUFHGE\WKHODQJXDJHRIWKH ZKHWKHU (VSDU]D ZDV VHQWHQFHG XQGHU FDSLWDO VHQWHQFLQJ &RXUWjVHDUOLHUSHUFXULDPRSLQLRQLQ3UHVQHOOY*HRUJLD SURFHGXUHVWKDWYLRODWHWKH(LJKWK$PHQGPHQWXQGHU)XUPDQ 86DFDSLWDOFDVHVLPLODUWRWKHLQVWDQWFDVH DQG LWV SURJHQ\  )XUWKHUPRUH WKLV OLQH RI FDVHV GRHV QRW LQZKLFKWKH*HRUJLD6XSUHPH&RXUWVXSSOLHGWKHDJJUDYDWRU GLVFXVVWKHKDUPOHVVHUURUGRFWULQHDQGWKHPDMRULW\VXSSOLHV HOHPHQWRIWKHFDSLWDORIIHQVHRQZKLFKWKHMXU\ZDVVLOHQW QRDXWKRULW\ZKLFKDOORZVLWWRLQIHUIURPWKH&RXUWjVVLOHQFH WKDW WKH GRFWULQH LV QRW DSSOLFDEOH  7KXV LQ $('3$ ,Q&ROHY$UNDQVDV86SHWLWLRQHUV WHUPLQRORJ\WKHVWDWHFRXUWjVUXOLQJLVQRWmFRQWUDU\WRlWKH ZHUH FRQYLFWHG DW WULDO RI RQH RIIHQVH EXW WKHLU 6XSUHPH&RXUWSUHFHGHQWXSRQZKLFKWKHPDMRULW\UHOLHV FRQYLFWLRQV ZHUH DIILUPHG E\ WKH 6XSUHPH &RXUW RI  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  ,Q)XUPDQY*HRUJLD86SHUFXULDP $UNDQVDV RQ WKH EDVLV RI HYLGHQFH LQ WKH UHFRUG WKH6XSUHPH&RXUWKHOGWKDWWKHSHQDOW\RIGHDWKPD\QRWEH LQGLFDWLQJWKDWWKH\KDGFRPPLWWHGDQRWKHURIIHQVHRQ LPSRVHGXQGHUDVHQWHQFLQJVFKHPHWKDWFUHDWHVDVXEVWDQWLDO ZKLFKWKHMXU\KDGQRWEHHQLQVWUXFWHG,QUHYHUVLQJWKH ULVNWKDWWKHSXQLVKPHQWZLOOEHLQIOLFWHGLQDQDUELWUDU\DQG FRQYLFWLRQV 0U sXVWLFH %ODFN ZURWH IRU D XQDQLPRXV FDSULFLRXV PDQQHU  )XUPDQ PDGH FOHDU WKDW D VWDWH PD\ &RXUW LPSRVHWKHGHDWKSHQDOW\RQO\LILWVODZVDUHVKDSHGWRQDUURZ WKHFODVVRIRIIHQGHUVHOLJLEOHIRUWKHGHDWKSHQDOW\*UHJJY m,WLVDVPXFKDYLRODWLRQRIGXHSURFHVVWRVHQGDQ *HRUJLD  86   UHDIILUPHG WKH KROGLQJ RI DFFXVHGWRSULVRQIROORZLQJFRQYLFWLRQRIDFKDUJH )XUPDQ VWDWLQJ WKDW mZKHUH GLVFUHWLRQ LV DIIRUGHG D RQ ZKLFK KH ZDV QHYHU WULHG DV LW ZRXOG EH WR VHQWHQFLQJERG\RQDPDWWHUVRJUDYHDVWKHGHWHUPLQDWLRQRI FRQYLFWKLPXSRQDFKDUJHWKDWZDVQHYHUPDGH ZKHWKHU D KXPDQ OLIH VKRXOG EH WDNHQ RU VSDUHG WKDW m7RFRQIRUPWRGXHSURFHVVRIODZSHWLWLRQHUVZHUH GLVFUHWLRQ PXVW EH VXLWDEO\ GLUHFWHG DQG OLPLWHG VR DV WR HQWLWOHG WR KDYH WKH YDOLGLW\ RI WKHLU FRQYLFWLRQV PLQLPL]HWKHULVNRIZKROO\DUELWUDU\DQGFDSULFLRXVDFWLRQl DSSUDLVHGRQFRQVLGHUDWLRQRIWKHFDVHDVLWZDVWULHG ,GDW,QRWKHUZRUGVDFDSLWDOVHQWHQFLQJVFKHPHPXVW DQGDVWKHLVVXHVZHUHGHWHUPLQHGLQWKHWULDOFRXUWl SURYLGHDmPHDQLQJIXOEDVLVIRUGLVWLQJXLVKLQJWKHIHZFDVHV ,GDWl LQ ZKLFK >WKH SHQDOW\@ LV LPSRVHG IURP WKH PDQ\ FDVHV LQ ZKLFK LW LV QRWl ,G DW  TXRWLQJ)XUPDQ  86 DW 7KHVH IXQGDPHQWDO SULQFLSOHV RI SURFHGXUDO IDLUQHVV 6HHDOVR *RGIUH\Y*HRUJLD86 DSSO\ZLWKQROHVVIRUFHDWWKHSHQDOW\SKDVHRIDWULDOLQ VDPHSOXUDOLW\RSLQLRQ=DQWY6WHSKHQV86 DFDSLWDOFDVHWKDQWKH\GRLQWKHJXLOWGHWHUPLQLQJSKUDVH   UXOLQJ WKDW MXU\jV OLPLWHG IXQFWLRQ RI ILQGLQJ RIDQ\FULPLQDOWULDO&I*DUGQHUY)ORULGD86 VWDWXWRU\DJJUDYDWLQJFLUFXPVWDQFHGRHVQRWUHQGHU*HRUJLDjV  VWDWXWRU\VFKHPHLQYDOLGXQGHU)XUPDQ :HDOVRDJUHHZLWKWKHGLVWULFWMXGJHWKDWWKHHUURUFDQQRW 7KH LVVXH LQ :RRGVRQ ZDV  mZKHWKHU D GHDWK VHQWHQFH EHRYHUFRPHE\ HPSOR\LQJmKDUPOHVVHUURUl1RQHRIWKH UHWXUQHG SXUVXDQW WR D ODZ LPSRVLQJ D PDQGDWRU\ GHDWK VHPLQDO6XSUHPH&RXUW(LJKWK$PHQGPHQWFDVHVUHTXLULQJ SHQDOW\IRUDEURDGFDWHJRU\RIKRPLFLGDORIIHQVHVFRQVWLWXWHV WKHQDUURZLQJRIWKHFODVVRIGHIHQGDQWVHOLJLEOHIRUWKHGHDWK FUXHO DQG XQXVXDO SXQLVKPHQW ZLWKLQ WKH PHDQLQJ RI WKH SHQDOW\SHUPLWVWKHRIIHQGHUWREHH[HFXWHGEHFDXVHWKHHUURU (LJKWK DQG )RXUWHHQWK $PHQGPHQWVl   86 DW  ZDV GHHPHG KDUPOHVV  )XUPDQ Y *HRUJLD  86  IRRWQRWHV RPLWWHG   7KH :RRGVRQ &RXUW H[SODLQHG WKDW  :RRGVRQ Y 1RUWK &DUROLQD  86   m>W@KH LVVXH OLNH WKDW H[SORUHG LQ )XUPDQ LQYROYHV WKH  DXWRPDWLF RU PDQGDWRU\ GHDWK SHQDOW\ GRHV QRW SURFHGXUH HPSOR\HG E\ WKH 6WDWH WR VHOHFW SHUVRQV IRU WKH FRPSO\ZLWKmWKHKROGLQJLQ)XUPDQWKDWWKHYHVWLQJRI XQLTXHDQGLUUHYHUVLEOHSHQDOW\RIGHDWKl,G7KH:RRGVRQ VWDQGDUGOHVVVHQWHQFLQJSRZHULQWKHMXU\YLRODWHGWKH(LJKWK &RXUWKHOGWKDWmLQFDSLWDOFDVHVWKHIXQGDPHQWDOUHVSHFWIRU $PHQGPHQWl*RGIUH\Y*HRUJLD86 KXPDQLW\ XQGHUO\LQJ WKH (LJKWK $PHQGPHQW UHTXLUHV  m7KH VWDQGDUGOHVV DQG XQFKDQQHOHG LPSRVLWLRQ RI FRQVLGHUDWLRQ RI WKH FKDUDFWHU DQG UHFRUG RI WKH LQGLYLGXDO GHDWKVHQWHQFHVLQWKHXQFRQWUROOHGGLVFUHWLRQRIDEDVLFDOO\ RIIHQGHUDQGWKHFLUFXPVWDQFHVRIWKHSDUWLFXODURIIHQVHDVD XQLQVWUXFWHG MXU\ LQ WKLV FDVH ZDV LQ QR ZD\ FXUHG E\ WKH FRQVWLWXWLRQDOO\LQGLVSHQVDEOHSDUWRIWKHSURFHVVRILQIOLFWLQJ DIILUPDQFH RI WKRVH VHQWHQFHV E\ WKH *HRUJLD 6XSUHPH WKH SHQDOW\ RI GHDWKl  ,G DW  FLWDWLRQV RPLWWHG  7KH &RXUWl7KHGHDWKSHQDOW\IRUDOOVXFKRIIHQGHUVKDVEHHQ &RXUWWKHUHIRUHFRQFOXGHGWKDWWKHGHDWKVHQWHQFHVLPSRVHG VHW DVLGH QRW UHYLHZHG IRU KDUPOHVV HUURU  $QG LQ WKH XSRQWKHSHWLWLRQHUVXQGHU1RUWK&DUROLQDjVPDQGDWRU\GHDWK  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  3UHVQHOOY*HRUJLDFDVHVXSUDWKH6XSUHPH&RXUWGLGQRW mVWUXFWXUDOl ,GDW,QIDFWWKH6XSUHPH&RXUWKDV VHQGWKHFDVHEDFNIRUKDUPOHVVHUURUUHYLHZ HPSOR\HGWKHmVWUXFWXUDOGHIHFWlYVmWULDOHUURUlGLFKRWRP\ LQ  FDSLWDO FDVHV 6HH HJ 6XOOLYDQ   86 DW  $VWDWHPD\QRWDGRSWDYDOLGVWDWXWHDQGWKHQGHFOLQHWR )XOPLQDQWH86DWKROGLQJWKDWDGPLVVLRQRIWKH FDUU\LWRXW7RDOORZDVWDWHWRFRQVWUXFWDFRQVWLWXWLRQDOO\ GHIHQGDQWjVFRHUFHGFRQIHVVLRQLQDFDSLWDOFDVHZDVVXEMHFW YDOLGGHDWKSHQDOW\VWDWXWHWKDWHVWDEOLVKHVDIDFWWREHSURYHG WR KDUPOHVV HUURU DQDO\VLV DQG ZDV QRW KDUPOHVV HUURU WRWKHMXU\EH\RQGDUHDVRQDEOHGRXEWEXWSHUPLWVMXGJHVWR 6DWWHUZKLWH  86 DW  DSSURYLQJ KDUPOHVV HUURU LJQRUHWKHVWDWXWHLQRUGHUWRLPSRVHWKHGHDWKSHQDOW\LVWKH DQDO\VLV RI DGPLVVLRQ LQ FDSLWDO VHQWHQFLQJ SURFHHGLQJ RI VDPH DV GLVSHQVLQJ ZLWK WKH UHDVRQDEOH GRXEW UHTXLUHPHQW SV\FKLDWULF WHVWLPRQ\ REWDLQHG LQ YLRODWLRQ RI WKH 6L[WK GHHPHGQRWVXEMHFWWRKDUPOHVVHUURUDQDO\VLVLQ6XOOLYDQY $PHQGPHQW &OHPRQV  86  KROGLQJ WKDW WKH /RXLVLDQD86m7KH6L[WK$PHQGPHQW &RQVWLWXWLRQ GRHV QRW SUHYHQW D VWDWH DSSHOODWH FRXUW IURP UHTXLUHVPRUHWKDQDSSHOODWHVSHFXODWLRQDERXWDK\SRWKHWLFDO XSKROGLQJDGHDWKVHQWHQFHWKDWLVEDVHGLQSDUWRQDQLQYDOLG MXU\jVDFWLRQRUHOVHGLUHFWHGYHUGLFWVIRUWKH6WDWHZRXOGEH DJJUDYDWLQJFLUFXPVWDQFHHLWKHUE\UHZHLJKLQJWKHHYLGHQFH VXVWDLQDEOHRQDSSHDOl,WLVQRWWKHVDPHDVGLVSHQVLQJ RUE\KDUPOHVVHUURUUHYLHZUHPDQGLQJIRUFODULILFDWLRQIURP ZLWK WKH PLQRU HOHPHQW RI mPDWHULDOLW\l LQ D IHGHUDO ZKLWH 0LVVLVVLSSL6XSUHPH&RXUW FROODU WD[ FDVH IRXQG VXEMHFW WR KDUPOHVV HUURU DQDO\VLV LQ 1HGHU Y 8QLWHG 6WDWHV  86    7KHUH LV QR 7KH PDMRULW\ SURFODLPV WKDW m>Q@RQH RI WKH VHPLQDO VXJJHVWLRQ LQ WKH &KLHI sXVWLFHjV RSLQLRQ LQ 1HGHU WKDW 6XSUHPH &RXUW (LJKWK $PHQGPHQW FDVHV UHTXLULQJ WKH KDUPOHVVHUURUZRXOGSURWHFWDGLUHFWHGYHUGLFWIRUWKH6WDWH QDUURZLQJ RI WKH FODVV RI GHIHQGDQWV HOLJLEOH IRU WKH GHDWK RQDFUXFLDOILQGLQJXQGHUWKH(LJKWK$PHQGPHQWLQDFDSLWDO SHQDOW\SHUPLWVWKHRIIHQGHUWREHH[HFXWHGEHFDXVHWKHHUURU FDVH,Q1HGHUsXVWLFH6WHYHQVVSHFLILFDOO\SRLQWVRXWLQKLV ZDV GHHPHG KDUPOHVVl 0DM 2S DW  FLWLQJ)XUPDQ Y FRQFXUULQJRSLQLRQWKDWVXFKKDUPOHVVHUURUZRXOGQRWDSSO\ *HRUJLD  86   SHU FXULDP :RRGVRQ Y WRFDSLWDOFDVHVZKHUHmWKHUHLVDVSHFLDOGDQJHUWKDWHOHFWHG 1RUWK &DUROLQD  86    *RGIUH\ Y MXGJHV PD\ OLVWHQ WR WKH YRLFH RI YRWHUV UDWKHU WKDQ *HRUJLD86,QQRQHRIWKRVHFDVHV ZLWQHVVHVl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KROGLQJWKDWVWDWXWHDOORZLQJWULDOMXGJHWR MXGJPHQWDWDOORQWKHRQO\SRVVLEOHDJJUDYDWLQJFLUFXPVWDQFH GHWHUPLQHSUHVHQFHRUDEVHQFHRIDJJUDYDWLQJIDFWRUVUHTXLUHG nDFRQVWLWXWLRQDOO\LQGLVSHQVDEOHUHTXLUHPHQWZLWKRXWZKLFK XQGHUVWDWHODZIRULPSRVLWLRQRIGHDWKSHQDOW\YLRODWHG6L[WK WKHGHDWKSHQDOW\FDQQRWEHLPSRVHG7KH6WDWHjVDUJXPHQW $PHQGPHQWULJKWWRDMXU\WULDOLQFDSLWDOSURVHFXWLRQVDQG WKDWWKHHUURUKHUHFDQEHH[FXVHGDVKDUPOHVVZRXOGOHDGWR VWDWLQJWKDWWKH&RXUWGLGmQRWUHDFKWKH6WDWHjVDVVHUWLRQWKDW WKHFRQFOXVLRQWKDWDQ\RUDOOHOHPHQWVUHTXLUHGE\DVWDWHjV DQ\HUURUZDVKDUPOHVVlEHFDXVHWKH&RXUWRUGLQDULO\OHDYHV FDSLWDOVHQWHQFLQJV\VWHPPD\EHVXSSOLHGE\MXGJHVUDWKHU LWWRORZHUFRXUWVWRSDVVRQWKHKDUPOHVVQHVVRIWKHHUURULQ WKDQWKHMXU\1HLWKHUWKH(LJKWK$PHQGPHQWQRU2KLRjVRZQ WKHILUVWLQVWDQFH  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  FDVHLQYLRODWLRQRIWKH'XH3URFHVV&ODXVH.HQWXFN\Y VWDWXWHVDGRSWHGLQRUGHUWRFRPSO\ZLWKLWSHUPLWVXFKDJURVV :KRUWRQ86IDLOXUHWRLQVWUXFWWKHMXU\ GHYLDWLRQIURPWKHSULQFLSOHRIMXU\VHQWHQFLQJDFFRUGLQJWR RQWKHSUHVXPSWLRQRILQQRFHQFH0RRUHY,OOLQRLV H[SUHVVO\VWDWHGFOHDUVWDWXWRU\VWDQGDUGV 86    DGPLVVLRQ RI LGHQWLILFDWLRQ HYLGHQFHLQYLRODWLRQRIWKH6L[WK$PHQGPHQW&RXQVHO ,Q WKLV FDVH HYHQ LI KDUPOHVV HUURU DQDO\VLV ZHUH &ODXVH 0LOWRQ Y :DLQZULJKW  86   DSSURSULDWHZHDUHIDFHGZLWKWKHSUREOHPWKDWVXSSUHVVHG FRQIHVVLRQREWDLQHGLQYLRODWLRQRI0DVVLDKY8QLWHG HYLGHQFHGLVFRYHUHGIRUWKHILUVWWLPHLQWKH'LVWULFW&RXUWLQ 6WDWHV86&KDPEHUVY0DURQH\ WKLVSURFHHGLQJUDLVHVDTXHVWLRQDERXWZKHWKHU(VSDU]DDFWHG 86DGPLVVLRQRIHYLGHQFHREWDLQHG DORQH7KHUHLVQHZHYLGHQFHE\WZRZLWQHVVHVVXSSUHVVHG LQ YLRODWLRQ RI WKH )RXUWK $PHQGPHQW &ROHPDQ Y E\ WKH SURVHFXWLRQ DW WULDO WKDW WKHUH ZHUH SRVVLEO\ WZR $ODEDPD86GHQLDORIFRXQVHODW SDUWLFLSDQWVLQWKHFULPHsRHsDVVRDQG(VSDU]D7KHEDVLVRQ SUHOLPLQDU\KHDULQJLQYLRODWLRQRIWKH6L[WK$PHQGPHQW ZKLFK 2KLR MXGJHV GLUHFWHG D YHUGLFW RQ WKH mSULQFLSDO &RQIURQWDWLRQ&ODXVH RIIHQGHUlDJJUDYDWRUnWKDWWKHUHZDVRQO\RQHSDUWLFLSDQWLQ WKHFULPHnDSSHDUVQRZWREHFDOOHGLQWRTXHVWLRQ7KXVWKH )XOPLQDQWH86DWVRPHFLWDWLRQVRPLWWHG,Q EDVLV IRU WKH 6WDWHjV KDUPOHVV HUURU DUJXPHQW LQ WKH 6WDWH )XOPLQDQWHWKH6XSUHPH&RXUWH[SODLQHGWKDW FRXUWVKDVEHHQXQGHUPLQHGE\WKHQHZHYLGHQFH 7KHFRPPRQWKUHDGFRQQHFWLQJWKHVHFDVHVLVWKDWHDFK ,,,2WKHU,VVXHV LQYROYHGmWULDOHUURUlHUURUZKLFKRFFXUUHGGXULQJWKH SUHVHQWDWLRQ RI WKH FDVH WR WKH MXU\ DQG ZKLFK PD\ %HFDXVHZHJUDQWWKHZULWDVWRKLVVHQWHQFHRIGHDWKRQ WKHUHIRUH EH TXDQWLWDWLYHO\ DVVHVVHG LQ WKH FRQWH[W RI (LJKWK$PHQGPHQWJURXQGVZHQHHGQRWUHDFKWKHDOWHUQDWH RWKHUHYLGHQFHSUHVHQWHGLQRUGHUWRGHWHUPLQHZKHWKHU JURXQGV RQ ZKLFK (VSDU]D DVNV XV WR YDFDWH WKH GHDWK LWVDGPLVVLRQZDVKDUPOHVVEH\RQGDUHDVRQDEOHGRXEW VHQWHQFHWKDWKHZDVGHQLHGHIIHFWLYHDVVLVWDQFHRIFRXQVHO DW VHQWHQFLQJ WKDW KLV ULJKWV ZHUH YLRODWHG ZKHQ KH ZDV ,GDW7KHKDUPOHVVHUURUUXOHWKXVmSURPRWHVSXEOLF GHQLHGDFRQWLQXDQFHWRSUHSDUHIRUWKHVHQWHQFLQJSKDVHDQG UHVSHFWIRUWKHFULPLQDOSURFHVVE\IRFXVLQJRQWKHXQGHUO\LQJ WKDWKLVULJKWVZHUHYLRODWHGWKURXJKFXPXODWLYHHUURULQWKH IDLUQHVV RI WKH WULDO UDWKHU WKDQ RQ WKH YLUWXDOO\ LQHYLWDEOH VHQWHQFLQJSKDVH SUHVHQFHRILPPDWHULDOHUURUl6DWWHUZKLWHY7H[DV86 TXRWLQJ5RVHY&ODUN86DW (VSDU]DDOVRDGYDQFHVWKUHHJURXQGVRQZKLFKKHDVNVXV WR JUDQW D JHQHUDO ZULW LQYDOLGDWLQJ KLV FRQYLFWLRQV IRU $OWKRXJKWKH6XSUHPH&RXUWKDVUHSHDWHGO\LQGLFDWHGWKDW DJJUDYDWHGPXUGHUDQGDJJUDYDWHGUREEHU\+HFODLPVWKDW mGHDWKLVGLIIHUHQWlVHH:RRGVRQY&DOLIRUQLD86 KHZDVGHQLHGLQHIIHFWLYHDVVLVWDQFHRIFRXQVHODWWULDO m>'@HDWKLVTXDOLWDWLYHO\GLIIHUHQWIURPDVHQWHQFH WKDWKLVULJKWVZHUHYLRODWHGZKHQWKHVWDWHGLGQRWSURYLGH RILPSULVRQPHQWKRZHYHUORQJ'HDWKLQLWVILQDOLW\GLIIHUV KLP ZLWK DOO DYDLODEOH UHOHYDQW PDWHULDO DQG H[FXOSDWRU\ PRUH IURP OLIH LPSULVRQPHQW WKDQ D \HDU SULVRQ WHUP HYLGHQFHDQGWKDWKLVULJKWVZHUHYLRODWHGZKHQWKHWULDO GLIIHUV IURP RQH RI RQO\ D \HDU RU WZRl VHH DOVR 'DYLG MXGJH UHIXVHG WR UHFXVH KLPVHOI DIWHU FRQGXFWLQJ D ZLWQHVV 0F&RUG ,V 'HDWK m'LIIHUHQWl IRU 3XUSRVHV RI +DUPOHVV FHUWLILFDWLRQ KHDULQJ FRQFHUQLQJ WKUHDWV DOOHJHGO\ PDGH (UURU$QDO\VLV"6KRXOG,W%H"$Q$VVHVVPHQWRI8QLWHG DJDLQVWDSRWHQWLDOZLWQHVVE\(VSDU]DjVEURWKHU:HDGGUHVV 6WDWHV DQG /RXLVLDQD 6XSUHPH &RXUW &DVH /DZ  /D / WKHVHLQWXUQ 5HY Q WKH&RXUWKDVQHYHUKHOGWKDW HYHU\ FRQVWLWXWLRQDO HUURU LQ D GHDWK SHQDOW\ FDVH LV  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  $,QHIIHFWLYH$VVLVWDQFHRI&RXQVHO UHVXOW ZDV FRUUHFW  7KDW LV m>H@DFK RI WKHVH FRQVWLWXWLRQDO GHSULYDWLRQV LV D VLPLODU VWUXFWXUDO  GHIHFW DIIHFWLQJ WKH (VSDU]D ILUVW FODLPV WKDW KH ZDV GHQLHG LQHIIHFWLYH IUDPHZRUNZLWKLQZKLFKWKHWULDOSURFHHGVUDWKHUWKDQVLPSO\ DVVLVWDQFHRIFRXQVHODWWULDO7KRXJKKHDGYDQFHVWKLVDVWZR DQHUURULQWKHWULDOSURFHVVLWVHOIl)XOPLQDQWH86DW VHSDUDWHJURXQGVDUJXLQJWKDWLQHIIHFWLYHDVVLVWDQFHRFFXUUHG m3XWDQRWKHUZD\WKHVH HUURUVGHSULYHGHIHQGDQWVRI ERWKZKHQKLVFRXQVHOIDLOHGWRUHDGWKHIDXOW\LQGLFWPHQWDQG µEDVLF SURWHFWLRQVj ZLWKRXW ZKLFK µD FULPLQDO WULDO FDQQRW ZKHQKHGLGQRWFRQGXFWDWKRURXJKSUHWULDOLQYHVWLJDWLRQRU UHOLDEO\VHUYHLWVIXQFWLRQDVDYHKLFOHIRUGHWHUPLQDWLRQRI REMHFWWRDOOHJHGSURVHFXWRULDOPLVFRQGXFWWKHFODLPVDUHRI JXLOWRULQQRFHQFHDQGQRFULPLQDOSXQLVKPHQWPD\EH DSLHFH7RHYDOXDWHVXFKFODLPVZHDSSO\WKHWZRSDUWWHVW UHJDUGHGDVIXQGDPHQWDOO\IDLUjl1HGHU86DW ODLGRXWLQ6WULFNODQGY:DVKLQJWRQ86 TXRWLQJ 5RVH Y &ODUN  86      :H PD\ RQO\ UHYHUVH D VWDWH FRXUW UXOLQJ LI LW LV DOWHUDWLRQLQRULJLQDO FRQWUDU\WRRULQYROYHVDQXQUHDVRQDEOHDSSOLFDWLRQRIIHGHUDO ODZ6HH86&†G 7KH 6XSUHPH &RXUW KDV UXOHG WKDW FRQVWLWXWLRQDO HUURUV VXEMHFWWRKDUPOHVVHUURUUHYLHZLQFOXGH (VSDU]DjVFODLPWKDWKLVFRXQVHOZDVLQHIIHFWLYHZKHQKH IDLOHG WR UHDG WKH LQGLFWPHQW LV EDVHG RQ D IDLU SRLQW  DQ\ &OHPRQVY0LVVLVVLSSL86 FRPSHWHQWFRXQVHOVKRXOGUHDGDQLQGLFWPHQW7RVXFFHHG XQFRQVWLWXWLRQDOO\ RYHUEURDG MXU\ LQVWUXFWLRQV DW WKH XQGHU6WULFNODQGKRZHYHU(VSDU]DPXVWDOVRVKRZKHZDV VHQWHQFLQJVWDJHRIDFDSLWDOFDVH6DWWHUZKLWHY7H[DV SUHMXGLFHGE\WKHIDLOXUHWRREMHFWWRWKHLQGLFWPHQW+DGKLV  86   DGPLVVLRQ RI HYLGHQFH DW WKH FRXQVHO REMHFWHG WKHUH LV OLWWOH GRXEW WKDW WKH SURVHFXWLRQ VHQWHQFLQJVWDJHRIFDSLWDOFDVHLQYLRODWLRQRIWKH6L[WK ZRXOGKDYHDPHQGHGWKHLQGLFWPHQWWRLQFOXGHWKHUHTXLUHG $PHQGPHQW&RXQVHO&ODXVH&DUHOODY&DOLIRUQLD ODQJXDJH,WPD\KDYHEHHQFRXQVHOjVVWUDWHJ\WROHDYHWKH 86    >@MXU\ LQVWUXFWLRQ FRQWDLQLQJ DQ HUURULQSODFH7KXVWKHGHFLVLRQRIWKH2KLRFRXUWVWRGHQ\ HUURQHRXVFRQFOXVLYHSUHVXPSWLRQ3RSHY,OOLQRLV UHOLHIRQWKLVEDVLVLVUHDVRQDEOHDQGVRDIILUPHG 86MXU\LQVWUXFWLRQPLVVWDWLQJDQ HOHPHQW RI WKH RIIHQVH 5RVH Y &ODUN  86  (VSDU]DDOVRFODLPVLQHIIHFWLYHDVVLVWDQFHRFFXUUHGZKHQ  MXU\ LQVWUXFWLRQ FRQWDLQLQJ DQ HUURQHRXV KLV FRXQVHO GLG QRW REMHFW WR FORVLQJ VWDWHPHQWV E\ WKH UHEXWWDEOH SUHVXPSWLRQ &UDQH Y .HQWXFN\  86 SURVHFXWLRQ,QWKHTXHVWLRQDEOHVWDWHPHQWVWKHSURVHFXWLRQ    HUURQHRXV H[FOXVLRQ RI GHIHQGDQWjV VWDWHGWKDWWKHYLFWLPZDVVKRWZKLOHUHDFKLQJIRUDQDODUP WHVWLPRQ\UHJDUGLQJWKHFLUFXPVWDQFHVRIKLVFRQIHVVLRQ DQGWKDWmVFLHQWLILFHYLGHQFHlVKRZHGWKHVKRRWLQJZDVQRW 'HODZDUH Y 9DQ $UVGDOO  86   DFFLGHQWDODOWKRXJKQRHYLGHQFHLQWKHUHFRUGVXSSRUWVWKHVH UHVWULFWLRQ RQ D GHIHQGDQWjV ULJKW WR FURVVH[DPLQH D FODLPV$OWKRXJKWKHVHVWDWHPHQWVDUHVRPHZKDWPLVOHDGLQJ ZLWQHVV IRU ELDV LQ YLRODWLRQ RI WKH 6L[WK $PHQGPHQW WKH\GRQRWZDUUDQWLVVXDQFHRIWKHZULW&RXQVHOLVIUHHWR &RQIURQWDWLRQ&ODXVH5XVKHQY6SDLQ86 DUJXH UHDVRQDEOH LQIHUHQFHV IURP WKH HYLGHQFH VR ORQJ DV DQGQGHQLDORIGHIHQGDQWjVULJKWWREH HYLGHQFHRQWKHUHFRUGLVQRWPLVVWDWHG6HH8QLWHG6WDWHVY SUHVHQWDWWULDO8QLWHG6WDWHVY+DVWLQJ86 VLF@ 2KLR $SS &&HUWLILFDWLRQ+HDULQJ 0D\   ,W DSSHDUV DFFRUGLQJO\ WKDW ZLWKRXW VD\LQJ VR H[SUHVVO\ WKH )LQDOO\(VSDU]DFODLPVKLVULJKWVZHUHYLRODWHGZKHQWKH VWDWH FRXUW HQJDJHG LQ D KDUPOHVV HUURU DQDO\VLV ILQGLQJ WKDW WKH WULDOMXGJHIDLOHGWRUHFXVHKLPVHOIDIWHUFRQGXFWLQJDSUHWULDO DEVHQFH RI WKH ZRUGV mSULQFLSDO RIIHQGHUl LQ WKH LQGLFWPHQW ZDV ZLWQHVVFHUWLILFDWLRQ KHDULQJ SXUVXDQW WR 2KLR 5 &ULP 3 QRW PHDQLQJIXO ZKHUH DV KHUH WKHUH ZDV RQO\ RQH RIIHQGHU %F XQGHU ZKLFK WKH FRXUW PD\ DOORZ WKH VWDWH WR FKDUJHG LQ WKDW LQGLFWPHQW ZLWKKROGSHUVRQDOLQIRUPDWLRQDERXWDSURVHFXWLRQZLWQHVV (VSDU]D Y $QGHUVRQ 1R &9 VOLS RS DW  (' 2KLR ZKHQWKHSURVHFXWLQJDWWRUQH\mFHUWLILHVWRWKHFRXUWWKDWWRGR 2FW   IRRWQRWHG RPLWWHG VRPD\VXEMHFWWKHZLWQHVVRURWKHUVWRSK\VLFDORUVXEVWDQWLDO 7KH GLVWULFW FRXUW IDLOHG WR TXRWH WKH ODVW VHQWHQFH RI WKH IRUHJRLQJ  (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  6WDWH Y (VSDU]D 1R /  :/  DW  HFRQRPLFKDUPRUFRHUFLRQl,G7KHZLWQHVVLQTXHVWLRQ 2KLR &W $SS sXO\   XQSXEOLVKHG SHU FXULDP KHUHZDV&DWKHULQH6WHJJ*UHJRU\(VSDU]DjVJLUOIULHQGDQG FDXVH GLVPLVVHG  1(G  2KLR   7KH 2KLR PRWKHURIKLVFKLOGZKRIHDUHGWKDW(VSDU]DjVEURWKHUVZRXOG &RXUWRI$SSHDOVHYDOXDWHGWKHDVVLJQPHQWRIHUURUXQGHUWKH KDUP KHU LI WKH\ NQHZ KHU ZKHUHDERXWV  ,Q VXSSRUW RI LWV 6WULFNODQGVWDQGDUG6HHLGDW VHWWLQJIRUWK6WULFNODQG FHUWLILFDWLRQ UHTXHVW WKH VWDWH SURYLGHG LQIRUPDWLRQ DERXW WHVWIRULQHIIHFWLYHDVVLVWDQFHRIFRXQVHOFODLPV$VWRWKLV (VSDU]DjVYLROHQWSDVW$IWHUWKHKHDULQJWKHMXGJHJUDQWHG LVVXHWKH2KLR&RXUWRI$SSHDOVFRQFOXGHG WKH PRWLRQ DOORZLQJ WKH VWDWH WR H[FOXGH 6WHJJjV SHUVRQDO LQIRUPDWLRQIURPGLVFRYHU\SURYLGHGWR(VSDU]D 8QGHUKLVILUVWDVVLJQPHQWRIHUURU(VSDU]DFRQWHQGV WKDWKLVGHDWKVHQWHQFHLVYRLGLQWKDWWKHVWDWHIDLOHGWR 7KH2KLR6XSUHPH&RXUWKDVKHOGWKDWLWLVHUURUIRUDMXGJH DOOHJHDQGWKHMXU\IDLOHGWRILQGDOORIWKHHOHPHQWVRID WRSUHVLGHDWVXFKDKHDULQJDQGWKHQSUHVLGHDWWKHVXEVHTXHQW FDSLWDOVSHFLILFDWLRQ,QSDUWLFXODUDSSHOODQWDVVHUWVWKDW WULDO DV WKH SUHMXGLFLDO LQIRUPDWLRQ RIWHQ UHYHDOHG DW VXFK WKH LQGLFWPHQW IDLOHG WR DOOHJH D GHDWK SHQDOW\ KHDULQJVFRXOGWHQGWRSUHMXGLFHDMXGJHDJDLQVWDGHIHQGDQW VSHFLILFDWLRQEHFDXVHLWGLGQRWDOOHJHWKDWKHZDVHLWKHU 6HH6WDWHY*LOODUG2KLR6WG1(G WKH SULQFLSDO RIIHQGHU RU WKDW KH FRPPLWWHG WKH  RYHUUXOHG RQ RWKHU JURXQGV 6WDWH Y 0F*XLUH  DJJUDYDWHG PXUGHU ZLWK SULRU FDOFXODWLRQ DQG GHVLJQ 2KLR6WG1(G,QVXFKLQVWDQFHV $SSHOODQWIXUWKHUDVVHUWVWKDWWKHMXU\LQVWUXFWLRQVDWWKH KRZHYHUKDUPOHVVHUURUDQDO\VLVLVDSSURSULDWH,GDW JXLOW\SKDVHRIKLVWULDOEHORZZHUHVLPLODUO\GHIHFWLYH (YDOXDWLQJWKLVFODLPRQUHYLHZWKH2KLR&RXUWRI$SSHDOV FRQFOXGHGWKDWWKHHUURUZDVKDUPOHVVQRWLQJLQSDUWLFXODU 2Q KLV RULJLQDO DSSHDOV EHIRUH WKLV FRXUW DQG WKH WKDW WKH HYLGHQFH WKDW WKH MXGJH KHDUG DW WKH KHDULQJ mLH 6XSUHPH &RXUW RI 2KLR DSSHOODQW DVVHUWHG WKDW KLV DSSHOODQWjVKLVWRU\RIYLROHQWEHKDYLRUZDVDOVRDGPLWWHGDW FRQYLFWLRQ ZDV DJDLQVW WKH PDQLIHVW ZHLJKW RI WKH WKHSHQDOW\SKDVHRIWKHWULDOEHORZl6WDWHY(VSDU]D1R/ HYLGHQFH8SRQUHYLHZERWKWKLVFRXUWDQGWKH6XSUHPH :/DW 2KLR$SSWK'LVW0D\ &RXUW GHWHUPLQHG WKDW WKH YHUGLFW ZDV QRW DJDLQVW WKH 5DWKHUWKDQFRQWHQGLQJWKDWWKHHUURUZDVKDUPIXO PDQLIHVW ZHLJKW RI WKH HYLGHQFH  ,Q VR ILQGLQJ ERWK (VSDU]DFODLPVWKDWVXFKHUURUVDUHmVWUXFWXUDOlDQGGHPDQG FRXUWV QHFHVVDULO\ GHWHUPLQHG WKDW DIWHU YLHZLQJ WKH UHYHUVDOLQHYHU\LQVWDQFH:HGLVDJUHH7KHQDWXUHRIWKH HYLGHQFHLQDOLJKWPRVWIDYRUDEOHWRWKHSURVHFXWLRQDQ\ FULPLQDO MXVWLFH V\VWHP RIWHQ UHTXLUHV MXGJHV WR FRQVLGHU UDWLRQDO WULHU RI IDFW FRXOG KDYH IRXQG WKH HVVHQWLDO HYLGHQFH DQG WKHQ GLVPLVV LW IURP WKHLU PLQGV  6HH HJ HOHPHQWV RI WKH FULPHV SURYHQ EH\RQG D UHDVRQDEOH :LWKURZY/DUNLQ867KXVKDUPOHVV GRXEW6HH6WDWHYsHQNV2KLR6WG HUURUDQDO\VLVLVFDOOHGIRUKHUHDQGZHILQGWKH2KLRFRXUWjV $GGLWLRQDOO\WKLVFRXUWLQLWVGHFLVLRQRI0D\ FRQFOXVLRQWKDWWKHHUURUGLG(VSDU]DQRKDUPLVDUHDVRQDEOH UHYLHZLQJDSSHOODQWjVSRVWFRQYLFWLRQDSSHDODGGUHVVHG DSSOLFDWLRQRIIHGHUDOODZ WKHPHULWVRIWKLVDVVLJQPHQWRIHUURUDQGIRXQGLWQRW ZHOOWDNHQ  $V VXFK ZH ILQG WKDW WKHUH DUH QR $FFRUGLQJO\WKHMXGJPHQWRIWKH'LVWULFW&RXUWLVDIILUPHG VXEVWDQWLYHJURXQGVIRUUHOLHIXQGHUWKLVDVVLJQPHQWRI HUURU  6WULFNODQG Y :DVKLQJWRQ  86    (VSDU]DY$QGHUVRQ 1RV 1RV (VSDU]DY$QGHUVRQ  BBBBBBBBBBBBBBBBB XQGHU†GmLIWKHVWDWHFRXUWDUULYHVDWDFRQFOXVLRQ RSSRVLWHWRWKDWUHDFKHGE\>WKH6XSUHPH@&RXUWRQDTXHVWLRQ ',66(17 RIODZRULIWKHVWDWHFRXUWGHFLGHVDFDVHGLIIHUHQWO\WKDQ>WKH BBBBBBBBBBBBBBBBB 6XSUHPH@&RXUWKDVRQDVHWRIPDWHULDOO\LQGLVWLQJXLVKDEOH IDFWVl,GDW$QmXQUHDVRQDEOHDSSOLFDWLRQlRFFXUV 68+5+(,15,&+&LUFXLWsXGJHGLVVHQWLQJ7KHPDMRULW\ ZKHQ mWKH VWDWH FRXUW LGHQWLILHV WKH FRUUHFW OHJDO SULQFLSOH KROGVWKDWWKHm2KLRFRXUWVGLGQRWIROORZ2KLRGHDWKSHQDOW\ IURP >WKH 6XSUHPH@ &RXUWjV GHFLVLRQV EXW XQUHDVRQDEO\ VWDWXWHV FUHDWHG WR FRPSO\ ZLWK 6XSUHPH &RXUW FDVHV DSSOLHVWKDWSULQFLSOHWRWKHIDFWVRIWKHSULVRQHUjVFDVHl,G QDUURZLQJWKHFODVVRIRIIHQGHUVHOLJLEOHIRUWKHGHDWKSHQDOW\ 8QGHUWKLVVWDQGDUGDVWDWHFRXUWGHFLVLRQLVQRWXQUHDVRQDEOH XQGHUWKH(LJKWK$PHQGPHQWl0DM2SDWDQGWKDWWKLV VLPSO\ EHFDXVH WKH IHGHUDO FRXUW FRQFOXGHV WKDW WKH VWDWH IDLOLQJFDQQRWEHRYHUFRPHE\HPSOR\LQJmKDUPOHVVHUURUl FRXUWjVGHFLVLRQLVHUURQHRXVRULQFRUUHFW,GDW5DWKHU 0DM2SDW,DJUHHWKDWWKHVWDWHIDLOHGWRSURSHUO\ WKHIHGHUDOFRXUWPXVWGHWHUPLQHWKDWWKHVWDWHFRXUWjVGHFLVLRQ LQGLFW(VSDU]DIRUWKHRIIHQVHRIFDSLWDOPXUGHUDQGIDLOHGWR LVDQREMHFWLYHO\XQUHDVRQDEOHDSSOLFDWLRQRIIHGHUDOODZ,G LQVWUXFWWKHMXU\WRILQGDOOHOHPHQWVRIWKHRIIHQVHRIFDSLWDO DW PXUGHU+RZHYHU,GRQRWDJUHHZLWKWKHPDMRULW\WKDWWKLV HUURUFDQQRWEHVXEMHFWWRDmKDUPOHVVHUURUlDQDO\VLV 7KH:LOOLDPV&RXUWHPSKDVL]HGWKDWmFOHDUO\HVWDEOLVKHG )HGHUDOODZDVGHWHUPLQHGE\WKH6XSUHPH&RXUWlUHIHUVWR $OWKRXJKWKHPDMRULW\EDVLFDOO\VLGHOLQHVLWVHH0DM2S mWKH KROGLQJV DV RSSRVHG WR WKH GLFWD RI >WKH 6XSUHPH@ DW  WKLV FDVH LV JRYHUQHG E\ WKH $QWLWHUUURULVP DQG &RXUWjV GHFLVLRQV DV RI WKH WLPH RI WKH UHOHYDQW VWDWHFRXUW (IIHFWLYH'HDWK3HQDOW\$FWRI3XE/1R GHFLVLRQ,GDW  6WDW   FRGLILHG DV DPHQGHG DW  86& †6XSSm$('3$lZKLFKSURYLGHVLQUHOHYDQW 8QGHUWKH$('3$ZHDUHWKHUHIRUHUHYLHZLQJWKHUHOHYDQW SDUW VWDWH FRXUW GHFLVLRQ (VSDU]D GLG QRW UDLVH DQ (LJKWK $PHQGPHQWFODLPRQGLUHFWDSSHDOLQWKHVWDWHFRXUWV+HGLG G$QDSSOLFDWLRQIRUDZULWRIKDEHDVFRUSXVRQEHKDOI QRWUDLVHWKHLVVXHXQWLOVWDWHSRVWFRQYLFWLRQSURFHHGLQJVDQG RIDSHUVRQLQFXVWRG\SXUVXDQWWRWKHMXGJPHQWRID6WDWH WKHQKHUDLVHGLWDVSDUWRIKLV6L[WK$PHQGPHQWLQHIIHFWLYH FRXUWVKDOOQRWEHJUDQWHGZLWKUHVSHFWWRDQ\FODLPWKDW DVVLVWDQFHRIDSSHOODWHFRXQVHOFODLP$VWKH2KLR&RXUWRI ZDVDGMXGLFDWHGRQWKHPHULWVLQ6WDWHFRXUWSURFHHGLQJV $SSHDOVVWDWHG XQOHVVWKHDGMXGLFDWLRQRIWKHFODLPo $SSHOODQWKDVQRZILOHGWKHSUHVHQWPRWLRQIRUGHOD\HG  UHVXOWHG LQ D GHFLVLRQ WKDW ZDV FRQWUDU\ WR RU UHFRQVLGHUDWLRQ LQ ZKLFK KH DVVHUWV WKDW KLV RULJLQDO LQYROYHG DQ XQUHDVRQDEOH DSSOLFDWLRQ RI FOHDUO\ DSSHOODWHFRXQVHOZDVLQHIIHFWLYHIRUIDLOLQJWRUDLVHWKH HVWDEOLVKHG )HGHUDO ODZ DV GHWHUPLQHG E\ WKH IROORZLQJDVVLJQPHQWVRIHUURULQWKHRULJLQDODSSHDORI 6XSUHPH&RXUWRIWKH8QLWHG6WDWHVRU KLVFRQYLFWLRQDQGVHQWHQFHWRWKLVFRXUW 86&†G $66,*10(172)(552512 $33(//$17(63$5=$j6'($7+6(17(1&( ,Q:LOOLDPVY7D\ORU86WKH6XSUHPH ,6 92,' $1' 9,2/$7(6 7+( (,*+7+ $1' &RXUW H[SODLQHG WKH PHDQLQJ RI mFRQWUDU\ WRlDQG )2857((17+ $0(1'0(176 72 7+( mXQUHDVRQDEOH DSSOLFDWLRQl LQ WKH VWDWXWH   $ VWDWH FRXUWjV 81,7('67$7(6&2167,787,21 OHJDOGHFLVLRQLVmFRQWUDU\WRlFOHDUO\HVWDEOLVKHGIHGHUDOODZ