Filed: Jan. 09, 2002
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 $//$1 ' 0,//6 ; 3ODLQWLII 1RV Y ! 5,9(5 7(50,1$/ 5$,/:$ @l 2KLR 5HY &RGH VXEPLWWHG5LYHU7HUPLQDO VWKLUGSDUW\FODLPVDJDLQVW/DIDUJH & DQG$OOHJDWRWULDOE\MXU\7KHMXU\IRXQGLQIDYRURI5LYHU 7HUPLQDOjV LQGHPQLW\ FODLP DJDL
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 $//$1 ' 0,//6 ; 3ODLQWLII 1RV Y ! 5,9(5 7(50,1$/ 5$,/:$ @l 2KLR 5HY &RGH VXEPLWWHG5LYHU7HUPLQDO VWKLUGSDUW\FODLPVDJDLQVW/DIDUJH & DQG$OOHJDWRWULDOE\MXU\7KHMXU\IRXQGLQIDYRURI5LYHU 7HUPLQDOjV LQGHPQLW\ FODLP DJDLQ..
More
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 $//$1 ' 0,//6 ; 3ODLQWLII 1RV Y ! 5,9(5 7(50,1$/ 5$,/:$ @l 2KLR 5HY &RGH VXEPLWWHG5LYHU7HUPLQDO VWKLUGSDUW\FODLPVDJDLQVW/DIDUJH & DQG$OOHJDWRWULDOE\MXU\7KHMXU\IRXQGLQIDYRURI5LYHU 7HUPLQDOjV LQGHPQLW\ FODLP DJDLQVW /DIDUJH 7KH GLVWULFW $SDUW\KDVPDGHDJRRGIDLWKHIIRUWWRVHWWOHZKHQLWKDV FRXUWHQWHUHGMXGJPHQWIRU5LYHU7HUPLQDOIRUWKHVHWWOHPHQW IXOO\ FRRSHUDWHG LQ GLVFRYHU\ SURFHHGLQJV UDWLRQDOO\ DPRXQWVSOXVDWWRUQH\V IHHVLQFXUUHGLQGHIHQGLQJDJDLQVWWKH HYDOXDWHG LWV ULVNV DQG SRWHQWLDO OLDELOLW\ QRW DWWHPSWHG WR HPSOR\HHV ODZVXLWV 7KH FRXUW GHQLHG 5LYHU 7HUPLQDOjV XQQHFHVVDULO\GHOD\WKHSURFHHGLQJVDQGPDGHDJRRGIDLWK VXEVHTXHQWPRWLRQIRUSUHMXGJPHQWLQWHUHVW PRQHWDU\VHWWOHPHQWRIIHURUUHVSRQGHGWRRQHLQJRRGIDLWK .DODLQY6PLWK1(G2KLR /DIDUJH DSSHDOV WKH MXGJPHQW FRQWHQGLQJ WKDW LQGHPQLILFDWLRQGRHVQRWOLHDVDPDWWHURIODZLQWKLVFDVH ,QDVXPPDU\FRQVLGHUDWLRQRIWKHPDWWHUZLWKRXWDKHDULQJ 5LYHU7HUPLQDOFURVVDSSHDOVIURPWKHGHQLDORISUHMXGJPHQW WKH GLVWULFW FRXUW GHQLHG SUHMXGJPHQW LQWHUHVW 7KH FRXUW LQWHUHVW:H$)),50 UHOLHGRQ:HUQHUY0F$ELHU:/DW 2KLR $SSs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jV WKHVRXQGGLVFUHWLRQRIWKHFRXUW,G:HFRQFOXGHWKDWWKH FRQWUDFWZLWK/79H[SLUHGDQG$OOHJDWRRNRYHUFRQWURORIWKH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ LQ GHQ\LQJ VODJSLWV SUHMXGJPHQWLQWHUHVW $IWHUDVHULHVRIFDVWVKDVILOOHGWKHVODJSLWDSLWRSHUDWRU ,9&RQFOXVLRQ FRROVWKHKRWVODJZLWKZDWHUIURPVSULQNOHUVDERYHWKHSLW 7KHUHDUHGUDLQVLQWKHSLWWRUHPRYHWKHZDWHU:KHQWKH $FFRUGLQJO\ZH$)),50WKHMXGJPHQWLQDOOUHVSHFWV VODJKDVFRROHGWKHSLWRSHUDWRUVGLJRXWDQGJUDGHWKHSLWWR 7KH +RQRUDEOH 3DWULFLD $ +HPDQQ 8QLWHG 6WDWHV 0DJLVWUDWH sXGJH IRU WKH 1RUWKHUQ 'LVWULFW RI 2KLR WR ZKRP WKH FDVH ZDV UHIHUUHG IRU ILQDO GLVSRVLWLRQ E\ FRQVHQW RI WKH SDUWLHV SXUVXDQW WR 86& F $OOHJD KDG KLUHG /DIDUJHj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jVGXW\H[SLUHG 5LYHU7HUPLQDOILOHGWKLUGSDUW\FRPSODLQWVDJDLQVW/DIDUJH $OOWKHVHFRQWHQWLRQVZHUHUHVROYHGDGYHUVHO\WR/DIDUJHE\ DQG$OOHJDLQERWKODZVXLWVVHHNLQJLQGHPQLILFDWLRQIRURU WKHYHUGLFWRIWKHMXU\7KHHYLGHQFHVKRZHGWKDWWKHHUXSWLRQ FRQWULEXWLRQWRZDUGDQ\OLDELOLW\5LYHU7HUPLQDOLQFXUUHGIRU ZDVFDXVHGE\WKHSUHVHQFHRIVLJQLILFDQWDPRXQWVRIZDWHULQ 0LOOVjV RU :ULJKWjV LQMXULHV %HIRUH WULDO 5LYHU 7HUPLQDO WKHVODJSLW/DIDUJHZDVUHVSRQVLEOHIRUWKHZDWHULQJJUDGLQJ VHWWOHG ZLWK 0LOOV DQG :ULJKW 6KRUWO\ WKHUHDIWHU 5LYHU DQGGUDLQLQJRIWKHSLWXQWLODSSUR[LPDWHO\IRUW\ILYHPLQXWHV 7HUPLQDOILOHGDQDPHQGHGWKLUGSDUW\FRPSODLQWLQIHGHUDO EHIRUHLWHUXSWHG7KHMXU\FRXOGUHDVRQDEO\FRQFOXGHWKDW FRXUWLQZKLFKLWDGGHGWKH:ULJKWVHWWOHPHQWWRWKHSHQGLQJ /DIDUJH KDG EUHDFKHG LWV GXW\ WR NHHS ZDWHU IURP EHLQJ IHGHUDOFRXUWOLWLJDWLRQ WUDSSHGXQGHUKRWVODJDQGWKDWWKHEUHDFKFDXVHG0LOOVjVDQG :ULJKWjVLQMXULHV 5LYHU 7HUPLQDO /DIDUJH DQG $OOHJD DOO PRYHG IRU VXPPDU\ MXGJPHQW RQ WKH LVVXH RI LQGHPQLILFDWLRQ 7KH 7KHUHIRUHZHUHMHFW/DIDUJHjVFRQWHQWLRQVWKDWWKHHYLGHQFH GLVWULFW FRXUW GHQLHG DOO PRWLRQV RQ WKLV LVVXH 5LYHU GRHVQRWVXSSRUWWKHMXU\YHUGLFW 7HUPLQDOjVFODLPVIRULQGHPQLILFDWLRQDQGFRQWULEXWLRQZHQW WRWULDOEHIRUHDMXU\7KHMXU\UHWXUQHGDYHUGLFWLQIDYRURI ,,,&URVV$SSHDO $OOHJD DV WR ERWK LQGHPQLILFDWLRQ DQG FRQWULEXWLRQ EXW UHWXUQHGDYHUGLFWIRU5LYHU7HUPLQDORQLWVLQGHPQLILFDWLRQ 5LYHU 7HUPLQDO DSSHDOV WKH GLVWULFW FRXUWjV GHQLDO RI LWV FODLPDJDLQVW/DIDUJH7KHMXU\IRXQGWKDW5LYHU7HUPLQDO PRWLRQIRUDQDZDUGRISUHMXGJPHQWLQWHUHVW KDGQRWEHHQQHJOLJHQWZLWKUHVSHFWWR0LOOVjVDQG:ULJKWj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m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jV DQG :ULJKW V VLGHWUDFN DJUHHPHQW 5LYHU 7HUPLQDO EHFDPH OLDEOH WR LWV ODZVXLWV5LYHU7HUPLQDOPRYHGWRDPHQGWKHMXGJPHQWWR HPSOR\HHV XQGHU )(/$jV VWDQGDUG RI FDUH ZKLFK UHTXLUHV LQFOXGHSUHMXGJPHQWLQWHUHVW7KHFRXUWGHQLHGWKHPRWLRQ WKDW WKH HPSOR\HU SURYLGH D VDIH SODFH WR ZRUN ,Q 7KHVHDSSHDOVIROORZHG FRQVLGHULQJ/DIDUJHjVVXPPDU\MXGJPHQWPRWLRQZHPXVW YLHZDOOIDFWVLQWKHOLJKWPRVWIDYRUDEOHWR5LYHU7HUPLQDO ,,'LVFXVVLRQ 7DNLQJ WKLV YLHZ 5LYHU 7HUPLQDO ZDV DW PRVW SDVVLYHO\ QHJOLJHQW DV FRPSDUHG WR /DIDUJHjV DFWLYH QHJOLJHQFH $,QGHPQLILFDWLRQ 7KHUHIRUH ZH FRQFOXGH WKDW 2KLR ODZ SHUPLWV 5LYHU 7HUPLQDOjV LQGHPQLILFDWLRQ DFWLRQ :H DIILUP WKH GLVWULFW 7KHGLVWULFWFRXUWGHQLHGWKHVXPPDU\MXGJPHQWPRWLRQVRI FRXUWjVGHQLDORI/DIDUJHjVPRWLRQIRUVXPPDU\MXGJPHQWRI DOOWKUHHSDUWLHVDVWRWKHLQGHPQLILFDWLRQLVVXHEDVHGRQLWV GLVPLVVDORIWKHLQGHPQLW\FODLP0RUHRYHUWKHMXU\YHUGLFWV GHWHUPLQDWLRQWKDWWKHUHZHUHJHQXLQHLVVXHVRIPDWHULDOIDFW DJDLQVW/DIDUJHILQGLQJLWZKROO\OLDEOHIRUWKHLQMXULHVWRWKH UHJDUGLQJZKHWKHUWKHQHJOLJHQFHRIDQ\SDUW\FRQWULEXWHGWR HPSOR\HHVRI5LYHU7HUPLQDOFRQILUP5LYHU7HUPLQDO VULJKW 0LOOVjV DQG :ULJKWjV LQMXULHV 6HH )HG 5 &LY 3 F WRLQGHPQLW\ &HORWH[&RUSY&DWUHWW86:HUHYLHZGH QRYR WKH FRXUWjV GHQLDO RI /DIDUJHjV PRWLRQ IRU VXPPDU\ %sXU\9HUGLFWV MXGJPHQW0RQNVY*HQ(OHF&R)GWK &LU /DIDUJHDOVRVHHNVWRRYHUWXUQWKHMXU\jVILQGLQJVWKDW5LYHU 7HUPLQDOZDVQRWQHJOLJHQWDQGWKDW/DIDUJHZDVQHJOLJHQW /DIDUJHDUJXHVWKDWWKHEDVLVIRULQGHPQLILFDWLRQSUHVHQWHG $MXU\jVGHWHUPLQDWLRQVDVWREUHDFKRIGXW\DQGSUR[LPDWH WRWKHMXU\GRHVQRWH[LVWXQGHU2KLRODZ/DIDUJHDVVHUWVWKDW FDXVHDUHUHYHUVLEOHRQO\LIWKH\DUHmVRPDQLIHVWO\FRQWUDU\WR 2KLRODZUHFRJQL]HVDQLPSOLHGFRQWUDFWIRULQGHPQLW\VROHO\ WKHQDWXUDODQGUHDVRQDEOHLQIHUHQFHVWREHGUDZQIURPWKH ZKHUH WKH WRUWIHDVRUV VKDUH D FRPPRQ GXW\ WR WKH LQMXUHG HYLGHQFH DV WR SURGXFH D UHVXOW LQ FRPSOHWH YLRODWLRQ RI SDUWLHVDQGDUHVRUHODWHGDVWRPDNHRQHSDUW\VHFRQGDULO\ VXEVWDQWLDOMXVWLFHl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lLV FLUFXPVWDQFHVKHUHZKHUHQRFRQWUDFWXDOUHODWLRQVKLSH[LVWV PDGHOLDEOHVHHDOVR*OREH,QGHP&RY6FKPLWW1(G EHWZHHQ5LYHU7HUPLQDODQG/DIDUJHLQGHPQLILFDWLRQFDQQRW 2KLRVWDWLQJWKDWLQGHPQLW\ZLOOOLHZKHUHD OLHDVDPDWWHURIODZ:HUHMHFWWKLVFRQWHQWLRQ SDUW\LVKHOGOLDEOHE\LQIHUHQFHRIODZUDWKHUWKDQE\UHDVRQ RI mDFWLYH SDUWLFLSDWLRQl $OOVWDWH ,QV &R Y 86 $VVRFV 7KH 2KLR 6XSUHPH &RXUW KDV UHFRJQL]HG WKH ULJKW RI 5HDOW\,QF1(G2KLR$SSKROGLQJ LQGHPQLW\DJDLQVWWKHSULPDU\WRUWIHDVRURQWKHSDUWRIRQH WKDWOLDELOLW\LPSRVHGE\VWDWXWHPD\JLYHULVHWRDQDFWLRQIRU VHFRQGDULO\ OLDEOH m>:@KHUH D SHUVRQ LV FKDUJHDEOH ZLWK LQGHPQLW\ZKHUHWKHSDUW\OLDEOHXQGHUWKHVWDWXWHLVPHUHO\ DQRWKHU VZURQJIXODFWDQGSD\VGDPDJHVWRWKHLQMXUHGSDUW\ SDVVLYHO\QHJOLJHQW DVDUHVXOWWKHUHRIKHKDVDULJKWRILQGHPQLW\IURPWKHSHUVRQ FRPPLWWLQJWKHZURQJIXODFWWKHSDUW\SD\LQJWKHGDPDJHV ,Q3DUVRQVY6RUJ3DSHU&R)GWK EHLQJRQO\VHFRQGDULO\OLDEOHZKHUHDVWKHSHUVRQFRPPLWWLQJ &LU WKLV FRXUW LQWHUSUHWHG 2KLR LQGHPQLW\ ODZ DV LW WKHZURQJIXODFWLVSULPDULO\OLDEOHl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m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mH[DPSOHVl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mDFWLYHO\ VHFRQGDULO\ OLDEOH ZDV QRW D EDVLV IRU WKDW GLVDSSURYDO QHJOLJHQWl 1(G DW