Filed: Aug. 15, 2001
Latest Update: Mar. 02, 2020
Summary: 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(7+ ( +$5' W@KHOLQFKSLQRIWKHLQTXLU\IRUERWKSXEOLFFRQFHUQDQG FODVVURRPGLVFXVVLRQ+DUG\WKHQDVNHG%HVVHULIWKHUHZDV DFDGHPLF IUHHGRP >LV@ WKH H[WHQW WR ZKLFK WKH VSHHFK DQ\WKLQJ KH FRXOG GR WR UHFWLI\ WKH VLWXDWLRQ 5DWKHU WKDQ DGYDQFHV D
Summary: 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(7+ ( +$5' W@KHOLQFKSLQRIWKHLQTXLU\IRUERWKSXEOLFFRQFHUQDQG FODVVURRPGLVFXVVLRQ+DUG\WKHQDVNHG%HVVHULIWKHUHZDV DFDGHPLF IUHHGRP >LV@ WKH H[WHQW WR ZKLFK WKH VSHHFK DQ\WKLQJ KH FRXOG GR WR UHFWLI\ WKH VLWXDWLRQ 5DWKHU WKDQ DGYDQFHV DQ..
More
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l'DPEURWY mSURPLQHQWFLWL]HQlUHSUHVHQWLQJWKHLQWHUHVWVRIWKH$IULFDQ &HQW0LFK8QLY)GWK&LU7KH $PHULFDQ FRPPXQLW\ KDG EHFRPH LQYROYHG DQG KDG FRXUW WKHQ FLWHG ZLWK DSSURYDO WKH 6HYHQWK &LUFXLWjV WKUHDWHQHGWRDIIHFWWKHVFKRROjVDOUHDG\GHFOLQLQJHQUROOPHQW GHWHUPLQDWLRQ LQ 6ZDQN Y 6PDUW )G WK &LU LIFRUUHFWLYHDFWLRQZDVQRWWDNHQ WKDWm>W@KHSXUSRVHRIWKHIUHHVSHHFKFODXVHLVWR SURWHFWWKHPDUNHWLQLGHDVEURDGO\XQGHUVWRRGDVWKHSXEOLF +DUG\ ILQLVKHG WHDFKLQJ WKH FRXUVH DV VFKHGXOHG LQ WKH H[SUHVVLRQ RI LGHDV QDUUDWLYHV FRQFHSWV LPDJHU\ VXPPHUVHPHVWHU2Q$XJXVW'U'HQLVH*UD\WKH RSLQLRQVnVFLHQWLILFSROLWLFDORUDHVWKHWLFnWRDQDXGLHQFH $VVLVWDQW'HDQRI6WXGHQWVIRUWKH&ROOHJHZURWH+DUG\WR ZKRPWKHVSHDNHUVHHNVWRLQIRUPHGLI\RUHQWHUWDLQl,GDW LQIRUP KLP WKDW WKH PDWWHU KDG EHHQ UHVROYHG WR WKH LQWHUQDO FLWDWLRQ DQG TXRWDWLRQ PDUNV RPLWWHG +DUG\YsHIIHUVRQ 1R 1R +DUG\YsHIIHUVRQ &RPPXQLW\&ROOHJHHWDO &RPPXQLW\&ROOHJHHWDO 7ZHQW\ \HDUV ODWHU LQ7LQNHU Y 'HV 0RLQHV ,QGHS 6FK VDWLVIDFWLRQ RI WKH FRPSODLQLQJ VWXGHQW $URXQG WKH VDPH 'LVW 86 WKH &RXUW HFKRHG WLPH %HVVHU OHIW D PHVVDJH RQ +DUG\jV KRPH DQVZHULQJ 7HUPLQLHOORjV UDWLRQDOH LQ UHMHFWLQJ D VFKRRO GLVWULFWjV PDFKLQHVWDWLQJWKDWmWKHUHZHUHQRFODVVHVlIRUKLPWRWHDFK DUJXPHQWWKDWWKHZHDULQJRIEODFNDUPEDQGVE\VRPHRIWKH LQWKH)DOOVHPHVWHU VWXGHQWVPLJKWSURYRNHDGLVWXUEDQFH7KH&RXUWVWDWHG $W+DUG\jVUHTXHVW*UHHQDQG%HVVHUPHWZLWK+DUG\WR >,@QRXUV\VWHPXQGLIIHUHQWLDWHGIHDURUDSSUHKHQVLRQRI GLVFXVVWKHLVVXHLQHDUO\6HSWHPEHURI7KH\LQIRUPHG GLVWXUEDQFH LV QRW HQRXJK WR RYHUFRPH WKH ULJKW WR KLP WKDW WKH PDWWHU KDG EHHQ UHVROYHG WR WKH VWXGHQWjV IUHHGRPRIH[SUHVVLRQ$Q\ZRUGVSRNHQLQFODVV VDWLVIDFWLRQEXWWKH\GHFOLQHGWRHODERUDWHIXUWKHU+DUG\ZDV LQWKHOXQFKURRPRURQWKHFDPSXVWKDWGHYLDWHVIURP QHYHUDJDLQDVNHGWRWHDFKDWWKH&ROOHJH WKH YLHZV RI DQRWKHU SHUVRQ PD\ VWDUW DQ DUJXPHQW RU FDXVHDGLVWXUEDQFH%XWRXU&RQVWLWXWLRQVD\VZHPXVW % 3URFHGXUDOEDFNJURXQG WDNHWKLVULVNDQGRXUKLVWRU\VD\VWKDWLWLVWKLVVRUWRI KD]DUGRXVIUHHGRPWKLVNLQGRIRSHQQHVVWKDWLVWKH 2QsXO\+DUG\ILOHGVXLWSXUVXDQWWR86& EDVLVRIRXUQDWLRQDOVWUHQJWKDQGRIWKHLQGHSHQGHQFH DOOHJLQJWKDWWKHGHIHQGDQWVKDGYLRODWHGKLVULJKWV DQGYLJRURI$PHULFDQV XQGHU WKH )LUVW DQG )RXUWHHQWK $PHQGPHQWV WR WKH 8QLWHG 6WDWHV&RQVWLWXWLRQ+DUG\jVFRPSODLQWFRQWHQGHGWKDWWKH ,GDWLQWHUQDOFLWDWLRQRPLWWHG GHIHQGDQWVKDGUHWDOLDWHGDJDLQVWKLPIRUH[HUFLVLQJKLVULJKWV RI IUHH VSHHFK DQG DFDGHPLF IUHHGRP +H DOVR DVVHUWHG 7KHDOOHJHGFLUFXPVWDQFHVVXUURXQGLQJ+DUG\jVWHUPLQDWLRQ VHYHUDO VWDWHODZ FDXVHV RI DFWLRQ LQFOXGLQJ GHIDPDWLRQ DSSHDU WR SUHVHQW D FODVVLF LOOXVWUDWLRQ RI mXQGLIIHUHQWLDWHG FRQVSLUDF\EUHDFKRIFRQWUDFWDQGWRUWLRXVLQWHUIHUHQFHZLWK IHDUl RI GLVWXUEDQFH RQ WKH SDUW RI WKH &ROOHJHjV DFDGHPLF KLVDQGWKH&ROOHJHjVFRQWLQXLQJEXVLQHVVUHODWLRQVKLS DGPLQLVWUDWRUV 2QO\ DIWHU 5HYHUHQG &ROHPDQ YRLFHG KLV RSSRVLWLRQWRWKHFODVVURRPGLVFXVVLRQGLG*UHHQDQG%HVVHU 7KH GHIHQGDQWV ILOHG D WLPHO\ PRWLRQ WR GLVPLVV WKH EHFRPHLQWHUHVWHGLQWKHVXEMHFWPDWWHURI+DUG\jVOHFWXUH FRPSODLQWSXUVXDQWWR5XOHERIWKH)HGHUDO5XOHVRI sXVWOLNHWKHVFKRRORIILFLDOVLQ7LQNHU*UHHQDQG%HVVHUZHUH &LYLO 3URFHGXUH DVVHUWLQJ YDULRXV JURXQGV IRU GLVPLVVDO FRQFHUQHG ZLWK mDYRLG>LQJ@ WKH GLVFRPIRUW DQG )LUVWWKH&ROOHJHDVZHOODV*UHHQDQG%HVVHULQWKHLURIILFLDO XQSOHDVDQWQHVV WKDW DOZD\V DFFRPSDQ\l D FRQWURYHUVLDO FDSDFLWLHV DUJXHG WKDW +DUG\jV FODLPV ZHUH EDUUHG E\ WKH VXEMHFW,GDW2QEDODQFH+DUG\jVULJKWVWRIUHHVSHHFK (OHYHQWK$PHQGPHQWWRWKH8QLWHG6WDWHV&RQVWLWXWLRQDQG DQG DFDGHPLF IUHHGRP RXWZHLJK WKH &ROOHJHjV LQWHUHVW LQ E\ VRYHUHLJQ LPPXQLW\ DV SURYLGHG LQ 6HFWLRQ RI WKH OLPLWLQJ WKDW VSHHFK +DUG\ WKHUHIRUH KDV VDWLVILHG ERWK .HQWXFN\&RQVWLWXWLRQ%HFDXVHWKH&ROOHJHLVDQDUPRIWKH SURQJVRIWKH3LFNHULQJWHVWLQVXFFHVVIXOO\DOOHJLQJD)LUVW VWDWHRI.HQWXFN\DQGEHFDXVHDQ\MXGJPHQWDJDLQVWHLWKHU $PHQGPHQWYLRODWLRQE\DSXEOLFHPSOR\HH WKH&ROOHJHRU*UHHQDQG%HVVHULQWKHLURIILFLDOFDSDFLWLHV ZRXOG EH SDLG RXW RI WKH VWDWH WUHDVXU\ WKH GLVWULFW FRXUW 4XDOLILHGLPPXQLW\GHIHQVH JUDQWHG WKLV SRUWLRQ RI WKH GHIHQGDQWVj PRWLRQV H[FHSWLQJ RQO\WKRVHFODLPVSUD\LQJVROHO\IRUSURVSHFWLYHLQMXQFWLYH *UHHQ DQG %HVVHU QH[W DUJXH WKDW WKH\ DUH HQWLWOHG WR UHOLHI TXDOLILHGLPPXQLW\EHFDXVHUHDVRQDEOHVFKRRORIILFLDOVFRXOG KDYHGLVDJUHHGDERXWZKHWKHUDQGWRZKDWH[WHQW+DUG\jV 6HFRQG*UHHQDQG%HVVHUFODLPHGWKDWWKH\ZHUHHQWLWOHG FODVVURRPVSHHFKZDVSURWHFWHGE\WKH)LUVW$PHQGPHQW$V WRTXDOLILHGLPPXQLW\LQWKHLULQGLYLGXDOFDSDFLWLHVEHFDXVH +DUG\YsHIIHUVRQ 1R 1R +DUG\YsHIIHUVRQ &RPPXQLW\&ROOHJHHWDO &RPPXQLW\&ROOHJHHWDO +DUG\KDGQRFRQVWLWXWLRQDOULJKWWRXVHWKHm1lZRUGDQGWKH LQWHUHVWLQOLPLWLQJDWHDFKHUjVVSHHFKLVQRWJUHDWZKHQWKRVH m%lZRUGDQGWKDWWKH\KDGWKHULJKWWRWHUPLQDWHKLPIRU SXEOLFVWDWHPHQWVmDUHQHLWKHUVKRZQQRUFDQEHSUHVXPHGWR XVLQJVXFKODQJXDJH7KHGLVWULFWFRXUWGHQLHGWKHLUPRWLRQ KDYH LQ DQ\ ZD\ HLWKHU LPSHGHG WKH WHDFKHUjV SURSHU KROGLQJWKDW+DUG\jVVSHHFKWRXFKHGXSRQmDPDWWHURISXEOLF SHUIRUPDQFHRIKLVGDLO\GXWLHVLQWKHFODVVURRPRUWRKDYH FRQFHUQlDQGWKDWDSXEOLFHPSOR\HHjVULJKWWRVSHDNRQVXFK LQWHUIHUHGZLWKWKHUHJXODURSHUDWLRQRIWKHVFKRROVJHQHUDOO\l PDWWHUVKDVEHHQFOHDUO\HVWDEOLVKHGE\WKH6XSUHPH&RXUW 3LFNHULQJ86DW ,QDUHODWHGUXOLQJWKHFRXUWGHQLHGWKHGHIHQGDQWVjPRWLRQWR GLVPLVV +DUG\jV VWDWHODZ FRQVSLUDF\ FODLP 'HVSLWH WKHLU *UHHQDQG%HVVHUKRZHYHUUHO\RQ+HWULFNY0DUWLQ DUJXPHQWWKDWKHKDGIDLOHGWRDOOHJHDQ\XQODZIXODFWWKDW )GWK&LUWRVXSSRUWWKHLUDVVHUWLRQWKDWWKH ZRXOG VXSSRUW D FRQVSLUDF\ FODLP WKH FRXUW KHOG WKDW LI &ROOHJHKDGDQDEVROXWHULJKWWRHYDOXDWH+DUG\jVPHWKRGRI +DUG\ FRXOG VKRZ WKDW WKH\ KDG UHWDOLDWHG DJDLQVW KLP IRU LQVWUXFWLRQ ,Q +HWULFN WKLV FRXUW IRXQG WKDW QR )LUVW H[HUFLVLQJKLVFRQVWLWXWLRQDOULJKWVKHZRXOGVDWLVI\WKHVWDWH $PHQGPHQWLQWHUHVWVZHUHLPSOLFDWHGZKHQDVWDWHXQLYHUVLW\ ODZFRQVSLUDF\UHTXLUHPHQW GLGQRWUHQHZWKHFRQWUDFWRIDQRQWHQXUHGSURIHVVRUEHFDXVH KHUSHGDJRJLFDOVW\OHDQGWHDFKLQJPHWKRGVGLGQRWFRQIRUP )LQDOO\WKHGLVWULFWFRXUWGHWHUPLQHGWKDW+DUG\KDGIDLOHG WRWKHXQLYHUVLW\jVVWDQGDUGV6HHLGDW%XW+HWULFNLV WRSOHDGVXIILFLHQWIDFWVWRVXSSRUWKLV)RXUWHHQWK$PHQGPHQW HDVLO\ GLVWLQJXLVKDEOH EHFDXVH WKH GLVWULFW FRXUW KDG PDGH HTXDOSURWHFWLRQ DQG SURFHGXUDOGXHSURFHVV FODLPV RU KLV VLJQLILFDQW ILQGLQJV RI IDFW UHODWHG WR WKH DGPLQLVWUDWLRQjV VWDWHODZFODLPVRIGHIDPDWLRQWRUWLRXVLQWHUIHUHQFHZLWKD GLVVDWLVIDFWLRQZLWK+HWULFNjVWHDFKLQJPHWKRGVDQGDELOLW\ FRQWUDFWXDOUHODWLRQVKLSDQGEUHDFKRIFRQWUDFW,WWKHUHIRUH 1XPHURXVVWXGHQWVKDGFRPSODLQHGDERXWmWKHLULQDELOLW\WR JUDQWHGWKHGHIHQGDQWVjPRWLRQWRGLVPLVVDOORIWKHVHODWWHU FRPSUHKHQGZKDWVKHZDVDWWHPSWLQJWRWHDFKWKHPRUZKDW FODLPV ZDVH[SHFWHGRIWKHPl,GDW6LJQLILFDQWO\WKHFRXUW QRWHGWKDWKDG+HWULFNEHHQDEOHWRmDGHTXDWHO\FRUURERUDWHl *UHHQDQG%HVVHUWKHQILOHGDPRWLRQWRDOWHURUDPHQGWKH KHUFODLPWKDWWKHQRQUHQHZDOZDVEDVHGRQVWDWHPHQWVPDGH GLVWULFWFRXUWjVUXOLQJWKDWWKH\ZHUHQRWHQWLWOHGWRTXDOLILHG LQFODVVUHODWHG WRWKH9LHWQDP:DUDQGWKHPLOLWDU\GUDIW LPPXQLW\ DVVHUWLQJ WKDW mWKH ULJKW WR IUHH VSHHFK LQ WKH UHOLHIPLJKWKDYHEHHQSURSHU6HHLGDW FODVVURRPVHWWLQJLVQRWFOHDUO\HVWDEOLVKHGl(PSKDVLVLQ RULJLQDO$JDLQWKHGLVWULFWFRXUWGHQLHGWKHLUPRWLRQILQGLQJ $VIXUWKHUMXVWLILFDWLRQIRU+DUG\jVWHUPLQDWLRQ*UHHQDQG WKHDUJXPHQWmWREHDGLVWLQFWLRQZLWKRXWDGLIIHUHQFHl7KH %HVVHUSRLQWWRWKHSRWHQWLDOGLVUXSWLRQLQVFKRRORSHUDWLRQV FRXUWDOVRGHQLHG*UHHQjVDQG%HVVHUjVPRWLRQWRUHFRQVLGHU DQG HQUROOPHQW WKDW PLJKW KDYH RFFXUUHG KDG 5HYHUHQG LWVUXOLQJRQ+DUG\jVVWDWHODZFRQVSLUDF\FODLP*UHHQDQG &ROHPDQEHFRPHPRUHLQYROYHGLQWKHPDWWHU7KH6XSUHPH %HVVHUKDYHILOHGWKLVLQWHUORFXWRU\DSSHDOWRFKDOOHQJHWKH &RXUWKRZHYHULQ7HUPLQLHOORY&LW\RI&KLFDJR86 GLVWULFWFRXUWjVGHQLDORIWKHLUTXDOLILHGLPPXQLW\GHIHQVH SURQRXQFHGWKDWDIXQFWLRQRIWKH)LUVW$PHQGPHQW mLV WR LQYLWH GLVSXWH 6SHHFK LV RIWHQ SURYRFDWLYH DQG FKDOOHQJLQJ,WPD\VWULNHDWSUHMXGLFHVDQGSUHFRQFHSWLRQV DQG KDYH SURIRXQG XQVHWWOLQJ HIIHFWV DV LW SUHVVHV IRU DFFHSWDQFHRIDQLGHD7KDWLVZK\IUHHGRPRIVSHHFKWKRXJK QRWDEVROXWHLVQHYHUWKHOHVVSURWHFWHGDJDLQVWFHQVRUVKLSRU SXQLVKPHQWl,GDWLQWHUQDOFLWDWLRQRPLWWHG +DUG\YsHIIHUVRQ 1R 1R +DUG\YsHIIHUVRQ &RPPXQLW\&ROOHJHHWDO &RPPXQLW\&ROOHJHHWDO SDUDPRXQW LQ WKH DFDGHPLF VHWWLQJl 0LQDUFLQL Y ,,s85,6',&7,21 6WURQJVYLOOH&LW\6FK'LVW)GWK&LU KROGLQJWKDWWKHm)LUVW$PHQGPHQWjVSURWHFWLRQRIDFDGHPLF 8QGHU86&WKLVFRXUWKDVMXULVGLFWLRQWRKHDU IUHHGRPlDSSOLHVWRWHDFKHUVjLQFODVVGLVFXVVLRQV DSSHDOVIURPmILQDOGHFLVLRQVlRIWKHGLVWULFWFRXUW$VWKH 6XSUHPH &RXUW KDV H[SODLQHG KRZHYHU mD GLVWULFW FRXUWjV :H QH[W IRFXV RQ WKH &ROOHJHjV LQWHUHVW LQ SURPRWLQJ GHQLDORIDFODLPRITXDOLILHGLPPXQLW\WRWKHH[WHQWWKDWLW HIILFLHQF\LQWKHHGXFDWLRQDOVHUYLFHVWKDWLWSURYLGHVDQGLQ WXUQV RQ DQ LVVXH RI ODZ LV DQ DSSHDODEOH µILQDO GHFLVLRQj DYRLGLQJGLVUXSWLRQWRLWVRSHUDWLRQV3LFNHULQJFRXQVHOVWKDW ZLWKLQWKHPHDQLQJRI86&QRWZLWKVWDQGLQJWKH FRXUWV VKRXOG FRQVLGHU ZKHWKHU DQ HPSOR\HHjV FRPPHQWV DEVHQFHRIDILQDOMXGJPHQWl0LWFKHOOY)RUV\WK86 PHDQLQJIXOO\LQWHUIHUHZLWKWKHSHUIRUPDQFHRIKLVGXWLHVRU 7KH &RXUW HPSKDVL]HG KRZHYHU WKDW ZLWK WKH HPSOR\HUjV JHQHUDO RSHUDWLRQV XQGHUPLQH D DSSHOODWH MXULVGLFWLRQ RYHU WKHVH LQWHUORFXWRU\ DSSHDOV LV OHJLWLPDWHJRDORUPLVVLRQRIWKHHPSOR\HUFUHDWHGLVKDUPRQ\ FRQILQHGWRWKHmSXUHO\OHJDOlTXHVWLRQRImZKHWKHUWKHIDFWV DPRQJ FRZRUNHUV XQGHUFXW DQ LPPHGLDWH VXSHUYLVRUjV DOOHJHGVXSSRUWDFODLPRIYLRODWLRQRIFOHDUO\HVWDEOLVKHG GLVFLSOLQHRYHUWKHHPSOR\HHRUGHVWUR\WKHUHODWLRQVKLSRI ODZl ,G DW Q :H WKHUHIRUH KDYH MXULVGLFWLRQ RYHU OR\DOW\ DQG WUXVW UHTXLUHG RI FRQILGHQWLDO HPSOR\HHV 6HH *UHHQjVDQG%HVVHUjVDSSHDOVRORQJDVRXUUHYLHZLVFRQILQHG 3LFNHULQJ86DWVHHDOVR:LOOLDPVY.HQWXFN\ WRWKHmSXUHO\OHJDOlTXHVWLRQRIZKHWKHUWKHIDFWVDVDOOHJHG )GWK&LUGHQ\LQJWKHGHIHQGDQWVj E\+DUG\VKRZDYLRODWLRQRIKLVFOHDUO\HVWDEOLVKHGULJKWV TXDOLILHGLPPXQLW\FODLPVEHFDXVHmQRUHDVRQDEOHRIILFLDO FRXOG FRQFOXGH WKDW >WKH VWDWHjV LQWHUHVW LQ SUHYHQWLQJ ,,,$1$/ +DUG\jV@ FDVHl WHDFKHUjVLQFODVVVSHHFKGHVHUYHVFRQVWLWXWLRQDOSURWHFWLRQ %HUU\PDQY5LHJHU)GWK&LU7KH 6HH %RQQHOO )G DW KROGLQJ WKDW mD SURIHVVRUjV IDFWVDVDOOHJHGE\+DUG\GLUHFWO\FRQWUDYHQHWKLVDWWHPSWWR ULJKWVWR DFDGHPLFIUHHGRPDQGIUHHGRPRIH[SUHVVLRQDUH +DUG\YsHIIHUVRQ 1R 1R +DUG\YsHIIHUVRQ &RPPXQLW\&ROOHJHHWDO &RPPXQLW\&ROOHJHHWDO UDWLRQDO GLVFRXUVH WKDW DOORZV WKHP WR SDUWLFLSDWH FKDUDFWHUL]H WKH PDWWHU DV mQRWKLQJ PRUH WKDQ DQ RUGLQDU\ PHDQLQJIXOO\ LQ SXEOLF GHEDWH +DUG\jV OHFWXUH RQ VRFLDO HPSOR\PHQW GLVSXWHl $W WKH sXO\ PHHWLQJ EHWZHHQ GHFRQVWUXFWLYLVPDQGODQJXDJHZKLFKH[SORUHGWKHVRFLDODQG %HVVHUDQG+DUG\%HVVHUTXHVWLRQHG+DUG\DWOHQJWKDERXW SROLWLFDOLPSDFWRIFHUWDLQZRUGVFOHDUO\PHHWVWKLVFULWHULRQ WKH XVDJH RI WKH m1l ZRUG LQ KLV FODVVURRP GLVFXVVLRQ $OWKRXJK+DUG\jVLQFODVVVSHHFKGRHVQRWLWVHOIFRQVWLWXWH %HVVHUDOVRDOOHJHGO\LQIRUPHG+DUG\WKDWLIKHmZHUHQRWD SXUHSXEOLFGHEDWHLWGRHVUHODWHWRPDWWHUVRIRYHUZKHOPLQJ ZKLWHPDOHWKLVZRXOGQRWEHDQLVVXHl$VVXFKZHZLOOQRW SXEOLF FRQFHUQ UDFH JHQGHU DQG SRZHU FRQIOLFWV LQ RXU FRQVLGHU *UHHQjV DQG %HVVHUjV GLVSXWHG YHUVLRQ RI WKH VRFLHW\6HHHJ%RQQHOO)GDWKROGLQJWKDWmWKH PDWHULDOIDFWVLQRXUDQDO\VLV VXEMHFWRISURIDQHFODVVURRPODQJXDJHZKLFKSUHFLSLWDWHVD VH[XDOKDUDVVPHQWFRPSODLQWORGJHGDJDLQVWWKHLQVWUXFWRU )LUVW$PHQGPHQWUHWDOLDWLRQFODLP LQYROYHVDPDWWHURISXEOLFLPSRUWl%OXP Y6FKOHJHO )GG&LUKROGLQJWKDWDODZVFKRRO +DUG\ DOOHJHV WKDW *UHHQ DQG %HVVHU YLRODWHG KLV )LUVW SURIHVVRUjVmVSHHFKDGYRFDWLQJWKHOHJDOL]DWLRQRIPDULMXDQD $PHQGPHQWULJKWWRIUHHGRPRIVSHHFKZKHQWKH\IDLOHGWR FULWLFL]LQJ QDWLRQDO GUXJFRQWURO SROLF\ DQG GHEDWLQJ FLYLO UHQHZKLVFRQWUDFWLQUHWDOLDWLRQIRUKLVLQFODVVGLVFXVVLRQRI GLVREHGLHQFH RQ LWV IDFH LPSOLFDWHV PDWWHUV RI SXEOLF mVRFLDOO\FRQWURYHUVLDOZRUGVl7KHGLVWULFWFRXUWIRXQGWKDW FRQFHUQl WKH XVH RI WKH UDFLDO DQG JHQGHU HSLWKHWV LQ DQ DFDGHPLF FRQWH[WGHVLJQHGWRDQDO\]HWKHLPSDFWRIWKHVHZRUGVXSRQ +DUG\KDVWKXVVDWLVILHGWKHILUVWSURQJRIWKHWZRSDUWWHVW VRFLHWDOUHODWLRQVWRXFKHGXSRQDPDWWHURISXEOLFFRQFHUQ VHWIRUWKLQ3LFNHULQJ:HWKHUHIRUHWXUQWRWKHVHFRQGSURQJ DQGWKXVIHOOZLWKLQWKH)LUVW$PHQGPHQWjVSURWHFWLRQ*UHHQ EDODQFLQJ +DUG\jV ULJKW WR VSHDN RQ D PDWWHU RI SXEOLF DQG%HVVHUFRQWHQGKRZHYHUWKDW+DUG\jVXVHRImUDFLDOO\ FRQFHUQDJDLQVWmWKHLQWHUHVWRIWKH6WDWHDVDQHPSOR\HULQ YXOJDU ZRUGVl SUHVHQWHG QR LVVXH RI SXEOLF FRQFHUQ DQG SURPRWLQJWKHHIILFLHQF\RIWKHSXEOLFVHUYLFHVLWSHUIRUPV WKHUHIRUHHQMR\HGQRFRQVWLWXWLRQDOSURWHFWLRQ WKURXJK LWV HPSOR\HHVl 3LFNHULQJ 86 DW $OWKRXJKWKHGLVWULFWFRXUWjVRUGHUGLGQRWGHWDLOLWVDQDO\VLV 7KH6XSUHPH&RXUWKDVORQJKHOGWKDWDSXEOLFHPSOR\HH XQGHUWKH3LFNHULQJEDODQFLQJWHVWLWIRXQGQRHYLGHQFHWKDW UHWDLQVKLV)LUVW$PHQGPHQWULJKWWRFRPPHQWRQPDWWHUVRI m+DUG\jV VSHHFK ZDV KDYLQJ D QHJDWLYH LPSDFW XSRQ >WKH SXEOLFFRQFHUQZLWKRXWIHDURIUHSULVDOIURPWKHJRYHUQPHQW VFKRROjVLQWHUHVWLQ@HIILFLHQF\l DVKLVHPSOR\HU6HH3LFNHULQJY%GRI(GXF86 KROGLQJWKDWDWHDFKHUjVFRPPHQWVFRQFHUQLQJ +DUG\ FODLPV WKDW KLV ULJKW WR IUHH VSHHFK DQG DFDGHPLF VFKRRO IXQGLQJ LVVXHV WRXFKHG XSRQ D PDWWHU RI SXEOLF IUHHGRP RXWZHLJK WKH &ROOHJHjV SHGDJRJLFDO LQWHUHVWV LQ FRQFHUQ DQG FRXOG QRW SURYLGH WKH EDVLV IRU GLVPLVVDO UHVWULFWLQJDWHDFKHUjVLQFODVVGLVFXVVLRQ*UHHQDQG%HVVHU )XUWKHUPRUHDQHPSOR\HHjVXQWHQXUHGVWDWXVZLOOQRWGHIHDW PDLQWDLQWKDWEHFDXVH+DUG\jVVSHHFKZDVmVH[LVWDQGUDFLDOO\ FRQVWLWXWLRQDO FODLPV 6HH 3HUU\ Y 6LQGHUPDQQ 86 GHURJDWRU\lLWZDUUDQWHGQRFRQVWLWXWLRQDOSURWHFWLRQ,QWKH GHFODULQJWKDWDSURIHVVRUjVODFNRIWHQXUH DOWHUQDWLYHWKH\DUJXHWKDWWKH&ROOHJHjVOHJLWLPDWHLQWHUHVWV GLGQRWGHIHDWWKHFODLPWKDWWKHQRQUHQHZDORIKLVFRQWUDFW LQDYRLGLQJWKHGLVUXSWLRQFDXVHGE\+DUG\jVDFWLRQVDQGWKH ZDVLQUHWDOLDWLRQIRUWKHH[HUFLVHRIKLVFRQVWLWXWLRQDOULJKWWR SRWHQWLDO IRU IXUWKHU GLVUXSWLRQ DV D UHVXOW RI 5HYHUHQG IUHHVSHHFK$SXEOLFHPSOR\HHPD\mHVWDEOLVKDFODLPWR &ROHPDQjVLQYROYHPHQWDVZHOODVWKHQHHGWRFRQWUROFRXUVH UHLQVWDWHPHQWLIWKHGHFLVLRQQRWWRUHKLUHKLPZDVPDGHE\ FXUULFXOXP DQG WKH SHGDJRJLFDO PHWKRGV RI WKH &ROOHJHjV UHDVRQ RI KLV H[HUFLVH RI FRQVWLWXWLRQDOO\ SURWHFWHG )LUVW LQVWUXFWRUVVKRXOGGHIHDW+DUG\jVVSHHFKLQWHUHVWV +DUG\YsHIIHUVRQ 1R 1R +DUG\YsHIIHUVRQ &RPPXQLW\&ROOHJHHWDO &RPPXQLW\&ROOHJHHWDO $PHQGPHQW IUHHGRPVl 0W +HDOWK\ &LW\ %G RI (GXF Y FRPSODLQWILOHGE\RQHRIWKHSURIHVVRUjVVWXGHQWV,GDW 'R\OH86 %HFDXVH%RQQHOOjVRIIHQVLYHODQJXDJHZDVmQRWJHUPDQHWR WKHVXEMHFWPDWWHUlWKHFRXUWFRQFOXGHGWKDWKHGLGmQRWKDYH $VDSXEOLFHPSOR\HH+DUG\PXVWVKRZWKDWKHZDV D FRQVWLWXWLRQDO ULJKW WR XVH >WKHVH WHUPV@ LQ D FODVVURRP GLVFLSOLQHGIRUVSHHFKWKDWZDVGLUHFWHGWRZDUGDQLVVXHRI VHWWLQJl,GDW8QOLNH%RQQHOOjVIUHTXHQWLQFODVVXVHRI SXEOLF FRQFHUQ DQG KLV LQWHUHVW LQ VSHDNLQJ DV KH GLG JUDWXLWRXV SURIDQLW\ DQG RIIHQVLYH ODQJXDJH KRZHYHU RXWZHLJKHG WKH&ROOHJHjVLQWHUHVWLQUHJXODWLQJKLVVSHHFK +DUG\jV VSHHFK ZDV JHUPDQH WR WKH VXEMHFW PDWWHU RI KLV 6HH3LFNHULQJ86DW OHFWXUHRQWKHSRZHUDQGHIIHFWRIODQJXDJH7KHFRXUVHZDV RQLQWHUSHUVRQDOFRPPXQLFDWLRQVDQG+DUG\jVVSHHFKZDV ,Q&RQQLFNY0\HUV86WKH6XSUHPH OLPLWHGWRDQDFDGHPLFGLVFXVVLRQRIWKHZRUGVLQTXHVWLRQ &RXUW GHWHUPLQHG WKDW WKH TXHVWLRQ RI ZKHWKHU D SXEOLF HPSOR\HHjVVSHHFKLVFRQVWLWXWLRQDOO\SURWHFWHGWXUQVXSRQWKH 7KLV FDVH LV VLPLODUO\ GLVWLQJXLVKDEOH IURP WKH IDFWV LQ mSXEOLFlRUmSULYDWHlQDWXUHRIVXFKVSHHFK7KHGLVWLQFWLRQ 'DPEURW ZKHUH WKH FRXUW KHOG WKDW WKH FRDFK RI D VWDWH LV EDVHG XSRQ WKH SULQFLSOH WKDW mVSHHFK RQ SXEOLF LVVXHV XQLYHUVLW\EDVNHWEDOOWHDPGLGQRWHQJDJHLQSURWHFWHGVSHHFK RFFXSLHV WKH KLJKHVW UXQJ RI WKH KHLUDUFK\ >VLF@ RI )LUVW ZKHQ KH XVHG WKH ZRUG mQLJJHUl GXULQJ D ORFNHUURRP $PHQGPHQWYDOXHVDQGLVHQWLWOHGWRVSHFLDOSURWHFWLRQl,G SHSWDON6HH'DPEURW)GDW7KH'DPEURWFRXUW DWLQWHUQDOFLWDWLRQDQGTXRWDWLRQPDUNVRPLWWHG IRXQGLWVLJQLILFDQWWKDWm'DPEURWjVXVHRIWKH1ZRUGZDV LQWHQGHGWREHPRWLYDWLRQDODQGZDVLQFLGHQWDOWRWKHPHVVDJH 7RGHWHUPLQHZKHWKHUDQHPSOR\HHjVVSHHFKDGGUHVVHVD FRQYH\HGl ,G 'DPEURWjV DUJXPHQW WKDW KLV VSHHFK ZDV PDWWHURISXEOLFFRQFHUQWKHFRXUWPXVWORRNWRWKHmFRQWHQW SURWHFWHGE\DFDGHPLFIUHHGRPZDVUHMHFWHGEHFDXVHLWIDLOHG IRUPDQGFRQWH[WRIDJLYHQVWDWHPHQWDVUHYHDOHGE\ WKH WR mDGYDQFH>@ DQ LGHD WUDQVFHQGLQJ SHUVRQDO LQWHUHVW RU ZKROHUHFRUGl,GDW6SHHFK WKDW UHODWHVmWRDQ\ RSLQLRQZKLFKLPSDFWVRXUVRFLDODQGRUSROLWLFDOOLYHVl,G PDWWHURISROLWLFDOVRFLDORURWKHUFRQFHUQWRWKHFRPPXQLW\l DW8QOLNH'DPEURWjVPRWLYDWLRQDOXVHRIWKHm1lZRUG WRXFKHV XSRQ PDWWHUV RI SXEOLF FRQFHUQ ,G DW UHPRYHGIURPDQ\DFDGHPLFFRQWH[W+DUG\jVLQFODVVXVHRI )XUWKHUPRUH WKH FRXUW PXVW GHWHUPLQH mWKH SRLQW RI WKH WKHREMHFWLRQDEOHZRUGZDVJHUPDQHWRWKHVXEMHFWPDWWHURI VSHHFK LQ TXHVWLRQ >EHFDXVH@ >F@RQWURYHUVLDO SDUWV RI KLVOHFWXUHRQWKHSRZHUDQGHIIHFWRIODQJXDJH0RUHRYHU VSHHFK DGYDQFLQJ RQO\ SULYDWH LQWHUHVWV GR QRW QHFHVVDULO\ WKLV DQG WKH RWKHU RIIHQVLYH ZRUGV ZHUH VXJJHVWHG E\ WKH LQYRNH )LUVW $PHQGPHQW SURWHFWLRQl 'DPEURW Y &HQW VWXGHQWVLQWKHFRQWH[WRIWKHGLVFXVVLRQQRWJUDWXLWRXVO\XVHG 0LFK8QLY)GWK&LUHPSKDVLVLQ E\+DUG\LQDQDEXVLYHPDQQHU RULJLQDOLQWHUQDOTXRWDWLRQDQGFLWDWLRQRPLWWHG %HFDXVH WKH HVVHQFH RI D WHDFKHUjV UROH LV WR SUHSDUH 5HO\LQJ RQ WKLV FRXUWjV UHFHQW GHFLVLRQ LQ %RQQHOO Y VWXGHQWV IRU WKHLU SODFH LQ VRFLHW\ DV UHVSRQVLEOH FLWL]HQV /RUHQ]R )G WK &LU *UHHQ DQG %HVVHU FODVVURRP LQVWUXFWLRQ ZLOO RIWHQ IDOO ZLWKLQ WKH 6XSUHPH DUJXHWKDW+DUG\jVXVHRImUDFLDOO\YXOJDUZRUGVlIDLOHGWR &RXUWjVEURDGFRQFHSWLRQRImSXEOLFFRQFHUQl6HH*UHJRU\ WRXFKXSRQDPDWWHURISXEOLFFRQFHUQDQGWKHUHIRUHZDVQRW $ &ODULFN 1RWH 3XEOLF 6FKRRO 7HDFKHUV DQG WKH )LUVW HQWLWOHG WR SURWHFWLRQ XQGHU WKH )LUVW $PHQGPHQW 7KH $PHQGPHQW3URWHFWLQJWKH5LJKWWR7HDFK1 D@ WHDFKHUjV VSHHFK ERWK JUDWXLWRXV LQFODVV XVH RI WKH ZRUGV mSXVV\l mFXQWl DQG RIIHUVVWXGHQWVLGHDVDQGDUJXPHQWVWKDWPD\EHYHU\PXFKD mIXFNl ZKLFK KDG JLYHQ ULVH WR D VH[XDO KDUDVVPHQW SDUW RI SXEOLF GHEDWH DQG WHDFKHV VWXGHQWV WKH SURFHVV RI