Elawyers Elawyers
Washington| Change

Boggs v. Collins, 99-3325 (2000)

Court: Court of Appeals for the Sixth Circuit Number: 99-3325 Visitors: 1
Filed: Sep. 18, 2000
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 52*(5 %2**6 ; 3HWLWLRQHU$SSHOOHH    1R Y  !  7(55 K@HFDPHWR ,QVXP%RJJVHQMR\HGDQRSSRUWXQLW\WRSUHVHQWDIXOODQG P\GRRUDQGVDLGKHZDVWKHIULHQGO\PDLQWHQDQFHPDQls$ PHDQLQJIXOGHIHQVHWRWKHFULPHVZLWKZKLFKKHZDVFKDUJHG DW$IWHUUHIXVL
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 52*(5 %2**6 ; 3HWLWLRQHU$SSHOOHH    1R Y  !  7(55 K@HFDPHWR ,QVXP%RJJVHQMR\HGDQRSSRUWXQLW\WRSUHVHQWDIXOODQG P\GRRUDQGVDLGKHZDVWKHIULHQGO\PDLQWHQDQFHPDQls$ PHDQLQJIXOGHIHQVHWRWKHFULPHVZLWKZKLFKKHZDVFKDUJHG DW$IWHUUHIXVLQJWROHWKLPLQVKHUHWULHYHGDFURZEDU ,Q DGGLWLRQ WR RWKHU VWUDWHJLHV KH SXUVXHG KH SXW IRUWK LQFDVHKHUHWXUQHG2WKHUZLWQHVVHVWHVWLILHGWKDW%RJJVZDV FRQVLGHUDEOHHYLGHQFHDWWDFNLQJ%HUPDQjVFUHGLELOLW\EDVHG GUXQNRQWKHQLJKWLQTXHVWLRQZKLOHKLVSUREDWLRQRIILFHUDQG RQKHUKLVWRU\RIPHQWDOLOOQHVVDQGVXEVWDQFHDEXVHDQGKH DGHSXW\VKHULIIUHVSHFWLYHO\WHVWLILHGWKDW%RJJVODWHUKDG KDPPHUHG WKLV WHVWLPRQ\ KRPH WR WKH MXU\ LQ KLV FORVLQJ WROG WKHP WKDW KH ZDV VR GUXQN WKDW KH ZRXOG mQRW EH DUJXPHQW7KLVFLUFXPVWDQFHLVWKXVXQOLNH&KDPEHUV VXUSULVHG DW DQ\WKLQJl s$ DW   DQG WKDW KH FRXOG QRW 86DW KROGLQJWKDW&KDPEHUVZDVGHQLHGWKHULJKWWR UHPHPEHUZKDWKHKDGGRQHIRUDQXPEHURIGD\V SUHVHQWDGHIHQVHZKHQKHZDVIRUELGGHQRXWULJKWIURPFURVV H[DPLQLQJDNH\ZLWQHVVGXHWRDQDQWLTXDWHGmYRXFKHUlUXOH %RJJVjVFURVVH[DPLQDWLRQRI%HUPDQDGGXFHGWKDWVKHZDV DQG ZKHQ WKH WULDO FRXUW GLG QRW DOORZ KLP WR FDOO WKUHH DSDVWGUXJXVHUZKRKDGDORQJKLVWRU\RIPHQWDOLOOQHVV IDYRUDEOHZLWQHVVHV DQG&UDQH86DW KROGLQJ 6KH IXUWKHU DFNQRZOHGJHG WKDW IRU PDQ\ \HDUV VKH KDG WKDW&UDQHjVULJKWWRSUHVHQWDGHIHQVHZDVWUDPPHOHGZKHQ XQGHUJRQH SV\FKLDWULF WUHDWPHQW IRU VFKL]RSKUHQLDOLNH ZLWKQRYDOLGVWDWHMXVWLILFDWLRQKHZDVZKROO\EDUUHGIURP FRQGLWLRQV DQG GHSUHVVLRQ DQG WKDW VKH KDG H[SHULHQFHG WHVWLI\LQJ DERXW WKH PDQQHU LQ ZKLFK KLV FRQIHVVLRQ ZDV mSV\FKRWLFHSLVRGHVlLQZKLFKVKH ZRXOGmORVHWRXFKZLWK REWDLQHG )LQDOO\ZHGRQRWILQGWKDWWKHDGGHGEHQHILWWR ZKDWjVUHDODQGZKDWjVQRWUHDOls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jV QRWUHTXLUHLWWRKDYHGRQHVR DSSHDUDQFH+HKDGWZRWDWWRRVnRQHRQKLVVKRXOGHUDQGRQH RQKLVEDFN+HKDGm>G@DUNEURZQKDLUDQG>ZDV@DORWELJJHU 9 WKDQPHls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jV FRQVWLWXWLRQDO ULJKW WR PRXQW D IXOO DQG PHDQLQJIXOGHIHQVH)RUWKHVHUHDVRQVZH5(9(56(WKH 7HVWLI\LQJ LQ KLV RZQ GHIHQVH %RJJV VWDWHG WKDW KH KDG EHHQLQ%HUPDQjVDSDUWPHQWVHYHUDOWLPHVSULRUWR&KULVWPDV (YHDQGWKDWKHKDGVKRZQKHUKLVWDWWRRVWKHQ+H DOVRVWDWHGWKDWKHKDGVWRSSHGE\%HUPDQjVUHVLGHQFHRQWKH GD\LQTXHVWLRQm,VWRSSHG>E\@HDUOLHUWKDWPRUQLQJ,ZDV  %RJJVY&ROOLQV 1R 1R %RJJVY&ROOLQV  KROORZ7KHSK\VLFDOHYLGHQFHVKRZVSHUVXDVLYHO\WKDWVKH OHDYLQJDQG,SHFNHGRQWKHGRRU>WR@VHHLI*DU\>5RWKZHOO GLGQRWmPDNHXSlWKHDWWDFN  KLVERVVDQG%HUPDQjVER\IULHQG@KDGPDGHLWLQDQG, WROGKHUZKHQ*DU\FRPHLQµ0HUU\&KULVWPDVjDQG,ZHQW )LQDOO\ WKH H[FOXVLRQ RI WKH SDUWLFXODU HYLGHQFH GLG QRW RQP\ZD\ls$DW2YHUWKHUHPDLQGHURIWKHGD\ WUDPSOH %RJJVjV ULJKW WR SUHVHQW D GHIHQVH JLYHQ WKH %RJJVWHVWLILHGKHGUDQNZLWKDQXPEHURISHRSOH%HWZHHQ FRQVLGHUDEOHODWLWXGHWKHWULDOFRXUWJUDQWHG%RJJVLQSXUVXLQJ VHYHQDQGQLQHRjFORFNWKDWHYHQLQJKHGUDQNDWKLVEURWKHUjV KLVWKHRU\WKDW%HUPDQIDEULFDWHGWKHUDSHFKDUJHGXHLQSDUW KRXVHZHQWWRDSDUW\DWDIULHQGjVKRXVHmDQGIURPWKHUH, WRKHUKLVWRU\RIPHQWDOLOOQHVVDQGGUXJXVH$VH[SODLQHG MXVW ZHQW DOO RYHU WKH QHLJKERUKRRGl YLVLWLQJ GLIIHUHQW VXSUD RYHU WKH JRYHUQPHQWjV REMHFWLRQV WKH WULDO FRXUW QHLJKERUVjKRPHVs$DW$IWHUQLQH%RJJVH[SODLQHG DOORZHG%RJJVWRFURVVH[DPLQH%HUPDQRQKHU KLVWRU\RI m, ZDV MXVW URDPLQJl DURXQG D QHDUE\ DSDUWPHQW FRPSOH[ PHQWDOLOOQHVVLQFOXGLQJWKHIDFWWKDWKHUGRFWRUVKDGIRXQG mDJJUDYDWLQJHYHU\ERG\LQWKHZKROHZLGHZRUOGls$DW KHUWRORVHWRXFKZLWKUHDOLW\WKDWVKHUHPDLQHGLQWKHUDS\   :KLOH %RJJVjV PRWKHU LQ D GHSRVLWLRQ VWDWHG WKDW ZLWKDSV\FKLDWULVWDQGWKDWVKHKDGEHHQWUHDWHGIRUVXEVWDQFH %RJJVDUULYHGKRPHDWWHQILIW\WKDWHYHQLQJKHVWDWHGWKDW DQG GUXJ DEXVH  %RJJV DOVR TXHVWLRQHG %HUPDQjV PRWKHU KHFRXOGQRW UHPHPEHUZKDWWLPHKHDUULYHGDWKHUKRXVH H[WHQVLYHO\DERXWKHUGDXJKWHUjVKLVWRU\RIPHQWDOLOOQHVVDQG s$ DW    +H DOVR GHQLHG KDYLQJ VHHQ (YD :KLWH WKDW VXEVWDQFHDEXVH,QLWVFORVLQJDUJXPHQW%RJJVjVFRXQVHO HYHQLQJDQGKDYLQJEHHQWR%HUPDQjVDSDUWPHQWDWDQ\WLPH UHPLQGHGWKHMXU\RIWKLVWHVWLPRQ\ WKDWQLJKW)LQDOO\KHGHQLHGKDYLQJWROGWKHGHSXW\VKHULII DQGSUREDWLRQRIILFHUWKDWKHZDVWRRGUXQNWRUHPHPEHUKLV /L] %HUPDQ DGPLWWHGO\ WHVWLILHG WKDW WKH ODVW IRXUWHHQ DFWLRQVDOWKRXJKKHGLGDFNQRZOHGJHWKDWKHWROGKLVPRWKHU \HDUVVKHjVVXIIHULQJIURPPHQWDOLOOQHVV6KHUHFHLYHV RQ &KULVWPDV GD\ WKDW LI KH mGLG >UDSH %HUPDQ KH@ GLGQjW >VRFLDO VHFXULW\@ EHFDXVH VKH LV PHQWDOO\ LOO  6KHjV UHPHPEHUls$DW DEXVHGGUXJVDQGKDVUHFHLYHGWUHDWPHQWIRUWKDW7KDW SDUWLFXODUO\ VKHjV KDG VFKL]RSKUHQLD DQG SV\FKRWLF 1HLWKHUKDLU RWKHUWKDQ%HUPDQjV QRUVHPHQZDVIRXQGRQ HSLVRGHV ORVW WRXFK ZLWK UHDOLW\  6KHjV WROG WKH %HUPDQjVSHUVRQRUFORWKLQJRUDQ\ZKHUHLQKHUDSDUWPHQW QHLJKERUV DERXW WZR PRQWKV DJR WKDW VKH KDV KDG $W WULDO %RJJV VKRZHG WKH MXU\ WKDW KH KDG IRXUWHHQ ODUJH QLJKWPDUHV1RZWKDWGRHVQjWPHDQ/L]%HUPDQjVDEDG WDWWRRVFRYHULQJKLVHQWLUHXSSHUWRUVR([KLELWVLQWURGXFHG SHUVRQ%XWLWGRHVSXWVRPHTXHVWLRQRQKHUDELOLW\WR GXULQJKLVWHVWLPRQ\DOVRVKRZHGWKDW%RJJVKDGDIXOOEHDUG UHPHPEHUKRZDOORIWKLVKDSSHQHGDQGGHWHUPLQHG>VLF@ DW WKH WLPH RI WKH DOOHJHG DWWDFN  6HYHUDO RI %HUPDQjV ZKHWKHUWKH\ZHUHUHDORUXQUHDO QHLJKERUVWHVWLILHGWKDWRQWKHQLJKWLQTXHVWLRQWKH\GLGQRW KHDU VFUHDPV IURP KHU DSDUWPHQW  6HYHUDO ZLWQHVVHV DOVR s$DW  $W WKDW WLPH %RJJV ZDV UHVLGLQJ ZLWK KLV PRWKHU DW WKH *OHQGDOH $SDUWPHQW FRPSOH[   %RJJV VXJJHVWHG LQ FORVLQJ DUJXPHQW WKDW SHUKDSV %HUPDQjV 2Q FURVVH[DPLQDWLRQ WKH LQYHVWLJDWRU ZKR WHVWLILHG DV WR WKH ZRXQGV ZHUH VHOILQIOLFWHG 3HUKDSV VKH mKDG D QLJKWPDUH DQG IHOO GRZQ DEVHQFH RI VHPHQ RU KDLU VDPSOHV DFNQRZOHGJHG WKDW PRUH RIWHQ WKDQ QRW DQG VDLG VKH ZDV UDSHG    , GRQjW NQRZ , GRQjW WKLQN \RX NQRZl s$ KDLU VDPSOHV RI D UDSLVW DUH QRW mLQWHUFKDQJHGl ZLWK WKH YLFWLP s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sRUGDQWHVWLILHGWKDWVKHVDZKLP DWURXEOLQJH[FHSWLRQWRRXUHYLGHQWLDU\LQFOLQDWLRQVLQRQO\ IRXUWLPHVEHWZHHQVHYHQWKLUW\DQGQLQH$SULOsRQHVVDZ WKHVH[XDODVVDXOWDQGUDSHFRQWH[WDQGFHPHQWWKDWH[FHSWLRQ KLPDURXQGVHYHQILIWHHQ5RGQH\'HQQLQJVWDWHGWKDW%RJJV LQWR RXU LQWHUSUHWDWLRQ RI WKH &RQVWLWXWLRQ ZH UHMHFW KLV VWRSSHGE\KLVKRPHIRUDERXWWHQPLQXWHVEHWZHHQHLJKWDQG DUJXPHQW6HHJHQHUDOO\/RSH]Y7H[DV6:G QLQH RjFORFN  6DPXHO DQG 3DXOD )UHHODQG HDFK VWDWHG WKDW  7H[ &ULP $SS  FULWLFL]LQJ FRXUW GHFLVLRQV %RJJV ZDV DW WKHLU UHVLGHQFH IRU DERXW ILIWHHQ PLQXWHV SURYLGLQJ DQ H[FHSWLRQ WR HYLGHQWLDU\ UXOHV IRU SULRU IDOVH VRPHWLPHEHWZHHQHLJKWDQGWHQSPZLWK3DXOD)UHHODQG DFFXVDWLRQVRIVH[XDODEXVH  HVWLPDWLQJ WKDW LW ZDV PRVW OLNHO\ EHWZHHQ QLQH DQG QLQH WKLUW\1RQHRIWKHZLWQHVVHVFRQILUPHG%RJJjVZULWWHQDOLEL 0RUHRYHU RQ FORVH H[DPLQDWLRQ WKH SULRU DFFXVDWLRQ WKDWKHZDVDWIULHQGVjKRXVHVEHWZHHQWHQDQGWHQIRUW\ILYH FKDUDFWHUL]HG E\ %RJJV GLIIHUV LQ LPSRUWDQW ZD\V IURP s$DW7KRVHZKRZLWQHVVHGKLPVWDWHGWKDW%RJJV %HUPDQjV DFFRXQW RI WKH DWWDFN E\ %RJJV  $FFRUGLQJ WR DSSHDUHG YHU\ GUXQN ZLWK VRPH WHVWLI\LQJ WKDW WKH\ FRXOG %RJJV %HUPDQ VLPSO\ IDEULFDWHG DQ DFFXVDWLRQ DJDLQVW VPHOODOFRKRORQKLP LQJ@ 7KLV DSSHDO FHQWHUV RQ WKH WULDO FRXUWjV GHFLVLRQ WR OLPLW :ROIl,QFRQWUDVWWKHSK\VLFDOHYLGHQFHVWURQJO\VXSSRUWV %RJJVjVFURVVH[DPLQDWLRQRI%HUPDQ6SHFLILFDOO\%RJJV %HUPDQjVFODLPWKDWVKHVXIIHUHGIURPDYLROHQWSK\VLFDODQG VRXJKWWRTXHVWLRQ%HUPDQDERXWDIDOVHDFFXVDWLRQRIUDSH VH[XDODWWDFNRQ&KULVWPDV(YH'U9RONIRXQGWKDWDQ WKDWVKHDOOHJHGO\PDGHDJDLQVWDQRWKHUPDQDSSUR[LPDWHO\ DQWHULRU UHFWDO DQG DQDO ODFHUDWLRQ KDG RFFXUUHG mYHU\ RQH PRQWK EHIRUH VKH DFFXVHG %RJJV RI UDSH  %RJJV DOVR UHFHQWO\lDQGZDVVWLOOmIUHVKO\EOHHGLQJls$DWDQG VRXJKWWRLQWURGXFHWKHWHVWLPRQ\RIWZRZLWQHVVHV:LOPD GHVFULEHG EUXLVHV DQG FRQWXVLRQV DERYH KHU OHIW H\H DQ &RSDV WKH DSDUWPHQW PDQDJHU DQG 5LFN @VFUDWFK>LQJ@GRZQKHUQHFNDQGFKHVWl VKHKDGEHHQUDSHGE\ %RJJVjVFRXQVHO@0LVV%HUPDQKDYH\RXHYHUDFFXVHG DGGXFHWHVWLPRQ\DVWRRWKHUSRVVLEOHVRXUFHVRIVXFKLQMXULHV DQ\ERG\HOVHRIKDYLQJUDSHG\RXLQWKHSDVW" *LYHQWKHVHYHU\UHDOLQMXULHV%RJJVjVDOOHJDWLRQWKDW%HUPDQ ZKROO\ IDEULFDWHG RQ D SUHYLRXV RFFDVLRQ ZRXOG WKXV KDYH >3URVHFXWRU@2EMHFWLRQ\RXU+RQRU FDUULHG RQO\ PDUJLQDO SUREDWLYH YDOXH DV WR ZKHWKHU VKH DFFXUDWHO\LGHQWLILHG%RJJVDVWKHSHUSHWUDWRURIWKHDWWDFN 7KH&RXUW6XVWDLQHG WKDWVKHFOHDUO\HQGXUHG,QRWKHUZRUGV%RJJVjVVXJJHVWLRQ  DWWULDOWKDWWKHSULRUDOOHJHGIDEULFDWLRQVKRZVmVKHjVPDGHLW XSDJDLQlDQGWKDWmVKHjVPDGHXSDOORIWKLVlVLPSO\ULQJV  %RJJVY&ROOLQV 1R 1R %RJJVY&ROOLQV  VWDWHDQGIHGHUDOUXOHPDNHUVKDYHmEURDGODWLWXGHlXQGHUWKH >%RJJVjV FRXQVHO@ 3URVHFXWRU@6RZKDW" DEULGJHDQDFFXVHGjVULJKWWRSUHVHQWDGHIHQVHVRORQJDVWKH\ DUHQRWµDUELWUDU\jRUµGLVSURSRUWLRQDWHWRWKHSXUSRVHWKH\DUH >%RJJVjVFRXQVHO@:HOOVKHjVPDGHLWXSDJDLQWKDWjV GHVLJQHGWRVHUYHjl,G TXRWLQJ5RFNY$UNDQVDV86 ZKDW,ZDQWWRILQGRXWLIVKHjVPDGHXSDOORIWKLV       7KH H[FOXVLRQ RI HYLGHQFH LV DUELWUDU\ RU GLVSURSRUWLRQDWHmRQO\ZKHUHLWKDVLQIULQJHGXSRQDZHLJKW\ 7KH&RXUW7KHRQO\WKLQJZRXOGEHWKHFUHGLELOLW\DVSHFW LQWHUHVWRIWKHDFFXVHGl,GVHH:RQJY0RQH\)G DQG\HWZHjUHJRLQJULJKWEDFNLQWKHEDFNGRRU  WK&LU  >%RJJVjV FRXQVHO@ ,jP QRW DVNLQJ DERXW KHU VH[XDO *LYHQWKHVHVWDQGDUGVZHGRQRWILQGWKDWWKHH[FOXVLRQRI DFWLYLW\ZLWKRWKHUSHRSOH$OO,jPDVNLQJLVLIVKHHYHU WKHWHVWLPRQ\UHJDUGLQJWKHSULRUUDSHDFFXVDWLRQLPSOLFDWHG DFFXVHGVRPHRQHHOVHEHIRUH %RJJVjVFRQVWLWXWLRQDOULJKWWRSUHVHQWDGHIHQVH)LUVWWKLV HYLGHQFHZDVQRWVRKLJKO\SUREDWLYHRIWKHFKDUJHVDJDLQVW >7KHFRXUWVXVWDLQHGWKHREMHFWLRQ@ %RJJVVRDVWREHFRQVWLWXWLRQDOO\UHTXLUHG%RJJVZDVDVNLQJ s$DW WKH MXU\ WR LQIHU WKDW WKH DOOHJHG SULRU LQFLGHQW PHDQW WKDW %HUPDQZDVDOVRDFFXVLQJ%RJJVIDOVHO\%XWRXUUXOHVRI /DWHUEHIRUH%RJJVEHJDQGLUHFWH[DPLQDWLRQRI&RSDVWKH HYLGHQFH JHQHUDOO\ IURZQ XSRQ XVLQJ HYLGHQFH RI SDVW 6WDWHUHTXHVWHGWKDWWKHFRXUWSUHFOXGHDQ\TXHVWLRQVDERXWWKH mZURQJVlRUmDFWVlWRVKRZmWKHFKDUDFWHURIDSHUVRQLQRUGHU DOOHJHG SULRU IDOVH DFFXVDWLRQ  %RJJVjV FRXQVHO UHVSRQGHG WRVKRZDFWLRQLQFRQIRUPLW\WKHUHZLWKlRQDODWHURFFDVLRQ WKDW mLI VKHjV SUHYLRXVO\ FULHG µZROIj , WKLQN WKDWjV 6HH )HG 5 (YLG  E  2KLR 5 (YLG  E  VHH DOVR SHUWLQHQW>%HUPDQ@LQIRUPHGWKLVZRPDQWKDWVRPHERG\ +XJKHV)GDW6LPLODUFRQFHUQVDQFKRU5XOH V KDGUDSHGKHUDERXWDPRQWKHDUOLHUDQGWKHUHZDVQRWKLQJ SURKLELWLRQ RI H[WULQVLF HYLGHQFH WR SURYH m>V@SHFLILF KDSSHQHGls$DW7KHFRXUWDJUHHGZLWKWKH6WDWHDQG LQVWDQFHVRIWKHFRQGXFWRIWKHZLWQHVV>@IRUWKHSXUSRVHRI EDUUHGH[DPLQDWLRQRQWKLVVXEMHFW DWWDFNLQJ RU VXSSRUWLQJ WKH ZLWQHVVjV FKDUDFWHU IRU WUXWKIXOQHVVl DQG SODFLQJ ZLWKLQ WKH GLVFUHWLRQ RI WKH WULDO & FRXUWZKHWKHUWRDOORZFURVVH[DPLQDWLRQRQVSHFLILFFRQGXFW ZKHQLWLVmSUREDWLYHRIWUXWKIXOQHVVRUXQWUXWKIXOQHVVl)HG $IWHU WKH MXU\ FRQYLFWHG %RJJV %RJJV UDLVHG VL[ 5(YLG E VHHDOVR2KLR(YLG5 E 6XFKUXOHV DVVLJQPHQWVRIHUURURQDSSHDOLQFOXGLQJWKDWWKHWULDOFRXUW DUHGHVLJQHGWRSUHYHQWGLVWUDFWLQJPLQLWULDOVRQFROODWHUDO LPSURSHUO\UHVWULFWHGFURVVH[DPLQDWLRQRQWKHDOOHJHGSULRU PDWWHUV6HH8QLWHG6WDWHVY5LGGOH)G WK IDOVHDFFXVDWLRQ2Q0D\2KLRjV)RXUWK'LVWULFW &LU    %RJJV DVNV XV QRW RQO\ WR ORRN SDVW WKH &RXUWRI$SSHDOVUHYHUVHG%RJJVjVFRQYLFWLRQEDVHGRQWKH VNHSWLFLVPH[SUHVVHGWKURXJKVXFKEHGURFNUXOHVEXWWRKROG SULRUIDOVHDFFXVDWLRQLVVXH6HH6WDWHY%RJJV1R&$ WKDW%HUPDQjVDOOHJHGSDVWIDOVHDFFXVDWLRQRIUDSH ZDVVR :/ 2KLR&W$SS $VVXPLQJWKDWWKHWULDO SUREDWLYH RI ERWK KHU FUHGLELOLW\ DQG WKH UHOLDELOLW\ RI KHU FRXUWKDGSUHFOXGHGWKHFURVVH[DPLQDWLRQSXUVXDQWWR2KLRjV DFFXVDWLRQ DJDLQVW %RJJV WKDW WKH &RQVWLWXWLRQ UHTXLUHG LWV UDSH VKLHOG ODZ 2KLR 5HY &RGH $QQ †  '  %RJJVY&ROOLQV 1R 1R %RJJVY&ROOLQV  $QGHUVRQ WKHFRXUWFRQFOXGHGWKDWDIDOVHDFFXVDWLRQ H[SODLQHGRUGHWDLOHG%HUPDQjVPHQWDOGLVRUGHUDVGLGWKH RIUDSHGRHVQRWIDOOZLWKLQWKHGHILQLWLRQRImVH[XDODFWLYLW\l FRXUWV LQ /LQGVWURP DQG 6RFLHW\ RI ,QGHSHQGHQW *DVROLQH XQGHUWKHUDSHVKLHOGODZDQGVKRXOGQRWEHH[FOXGHGRQWKDW 0DUNHWHUV RI $PHULFD  ,QGHHG LW GRHV QRW DSSHDU WKDW WKH JURXQG7KHFRXUWDOVRQRWHGWKDWm>L@W LV ZHOOVHWWOHGWKDW GHIHQVHVRXJKWWRH[DPLQH%HUPDQjVPHQWDOKLVWRU\EH\RQG FULPLQDOGHIHQGDQWVKDYHWKHULJKWWRFRQIURQWWKHZLWQHVVHV LWVFURVVH[DPLQDWLRQRI%HUPDQDQGKHUPRWKHU DJDLQVWWKHPXQGHUERWKWKH6L[WK$PHQGPHQWWRWKH8QLWHG 6WDWHV&RQVWLWXWLRQDQGXQGHUWKH2KLR&RQVWLWXWLRQl,G ,Q 'RUVH\ ZKHQ IDFHG ZLWK D VLPLODU VLWXDWLRQ ZKHUH DW )LQGLQJWKDW%RJJVjVFRQYLFWLRQWXUQHGVXEVWDQWLDOO\RQ FRQVLGHUDEOHFURVVH[DPLQDWLRQKDGEHHQSHUPLWWHGDV WR D %HUPDQjV FUHGLELOLW\ WKH FRXUW FRQFOXGHG WKDW LW ZDV JRYHUQPHQWZLWQHVVjVSULRUPHQWDOWUHDWPHQWWKLV&RXUWKHOG mµLPSHUDWLYH WKDW WKH GHIHQGDQW EH JLYHQ DQ RSSRUWXQLW\ WR WKDWZKHQmLWLVPHUHO\WKHH[WHQWRIFURVVH[DPLQDWLRQWKDWLV SODFHEHIRUHWKHMXU\HYLGHQFHVRIXQGDPHQWDOO\DIIHFWLQJWKH OLPLWHG WKH WULDO MXGJH UHWDLQV D PXFK ZLGHU ODWLWXGH RI FRPSODLQDQWjV FUHGLELOLW\jl  ,G DW  TXRWLQJ 3HRSOH Y GLVFUHWLRQl 'RUVH\  )G DW   m2QFH FURVV 0LNXOD1:G 0LFK&W$SS 7KH H[DPLQDWLRQ UHYHDOV VXIILFLHQW LQIRUPDWLRQ WR DSSUDLVH WKH FRXUWUHDVRQHGIXUWKHUWKDWmLWLVGLIILFXOWWRLPDJLQHDPRUH ZLWQHVVHVjYHUDFLW\FRQIURQWDWLRQGHPDQGVDUHVDWLVILHGl,G µLPSHUDWLYHj FDWHJRU\ RI GHIHQVH HYLGHQFH WKDQ WKDW ZKLFK *LYHQWKHFRQVLGHUDEOHFURVVH[DPLQDWLRQRI%HUPDQjVSDVW VKRZV WKH SURFOLYLW\ RI D FRPSODLQDQW WR PDNH UDSH PHQWDOFRQGLWLRQDQGWUHDWPHQWZHEHOLHYHWKDWWKHMXU\KDG DFFXVDWLRQVl,G)LQGLQJLWVFRQFOXVLRQWRFRQIOLFWZLWKWKDW VXIILFLHQW LQIRUPDWLRQ WR DVVHVV %RJJVjV DUJXPHQW WKDW KHU RIDQRWKHU2KLRDSSHOODWHFRXUWWKHFRXUWFHUWLILHGWKHFDVHWR KLVWRU\RIPHQWDOLOOQHVVFDVWGRXEWRQKHUDFFXVDWLRQDJDLQVW WKH2KLR6XSUHPH&RXUW %RJJVVDWLVI\LQJWKH&RQIURQWDWLRQ&ODXVH 7KH2KLR6XSUHPH&RXUWDJUHHGZLWKWKHFRXUWRIDSSHDOV ,9 WKDW IDOVH DFFXVDWLRQV RI UDSH ZKHUH QR VH[XDO DFWLYLW\ LV LQYROYHGGRQRWIDOOZLWKLQ2KLRjVUDSHVKLHOGVWDWXWH6HH %RJJV DOVR DUJXHV WKDW EHFDXVH KH ZDV SUHFOXGHG IURP 6WDWHY%RJJV1(G 2KLR 5DWKHU LQWURGXFLQJ FUXFLDO HYLGHQFH LQ KLV IDYRU WKH SURFHHGLQJV FURVVH[DPLQDWLRQ RI D UDSH YLFWLP UHJDUGLQJ SULRU EHORZGHSULYHGKLPRIKLVFRQVWLWXWLRQDOULJKWWRSUHVHQWDIXOO DFFXVDWLRQVRIUDSHLVJRYHUQHGE\2KLR(YLG5 % 6HH GHIHQVH:HGLVDJUHH LG7KHFRXUW WKHQ VHW IRUWKDSURFHGXUHIRUWULDOFRXUWVWR IROORZLQVXFKVLWXDWLRQV 7KH ULJKW WR SUHVHQW D FRPSOHWH DQG PHDQLQJIXO GHIHQVH HPHUJHVIURPWKH6L[WK$PHQGPHQWj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jVULJKW DQVZHUVLQWKHDIILUPDWLYHWKHWULDOFRXUWZRXOGKDYHWR WRSUHVHQWDGHIHQVH6HH&UDQH86DW ILQGLQJWKDW FRQGXFW DQ LQ FDPHUD KHDULQJ WR GHWHUPLQH ZKHWKHU WKHWULDOFRXUWYLRODWHG&UDQHjVULJKWWRSUHVHQWDGHIHQVHZKHQ VH[XDO DFWLYLW\ KDG EHHQ LQYROYHG   ,I WKH WULDO FRXUW LW H[FOXGHG HYLGHQFH EHDULQJ RQ WKH FUHGLELOLW\ RI KLV GHWHUPLQHGWKDWWKHDFFXVDWLRQVZHUHHQWLUHO\IDOVH WKDW FRQIHVVLRQ &KDPEHUV86DW LQYDOLGDWLQJDVWDWHjV LV WKDW QR VH[XDO DFWLYLW\ KDG EHHQ LQYROYHG  WKH WULDO KHDUVD\UXOHEHFDXVHLWYLRODWHGDGHIHQGDQWj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mLW ZRXOG EH FHUWDLQO\ XQIDLU XQGHU WKH XQIRXQGHG DQG WKHUHIRUH FRXOG EH LQTXLUHG LQWR RQ FLUFXPVWDQFHVWRQRWSHUPLWWKHGHIHQGDQWWRDWOHDVWLQTXLUH FURVVH[DPLQDWLRQSXUVXDQWWR(YLG5 %  DVWRZKHWKHURUQRWWKHGRFWRUDWWLPHVIHOWOLNHVKHZDVRXW RIWRXFKZLWKUHDOLW\ls$DW7KHUHIRUHRYHUWKH ,GDW7KHFRXUWDOVRHVWDEOLVKHGDSHUVHUXOHWKDW REMHFWLRQRIWKHSURVHFXWRUWKHFRXUWSHUPLWWHG%RJJVWRHOLFLW SULRU IDOVH DOOHJDWLRQV RI VH[XDO DVVDXOW mDUH DQ HQWLUHO\ IURPERWK%HUPDQDQGKHUPRWKHUWKDWGRFWRUVKDGSUHYLRXVO\ FROODWHUDO PDWWHUl DQG WKHUHIRUH mPD\ QRW EH SURYHG E\ IRXQGKHUWRKDYHVXIIHUHGSV\FKRWLFHSLVRGHVLQZKLFKVKH H[WULQVLFHYLGHQFHl,GDW)LQDOO\WKHFRXUWH[SODLQHG KDGORVWWRXFKZLWKUHDOLW\s$DW7KHGHIHQVHDOVR WKDWWKLVDSSURDFKGLGQRWYLRODWHWKH&RQIURQWDWLRQ&ODXVH HOLFLWHGWKDW%HUPDQKDGEHHQKRVSLWDOL]HGIRUPHQWDOLOOQHVV 6HHLG m7KHULJKWVWRFRQIURQWZLWQHVVHVDQGWRGHIHQGDUH DQGVXEVWDQFHDEXVHRQQXPHURXVRFFDVLRQVLQWKHSDVWZLWK QRWDEVROXWHDQGPD\ERZWRDFFRPPRGDWHRWKHUOHJLWLPDWH KHU ODVW KRVSLWDOL]DWLRQ KDYLQJ EHHQ DSSUR[LPDWHO\ VL[ RU LQWHUHVWVLQWKHFULPLQDOSURFHVVl $FFRUGLQJO\WKHFRXUW VHYHQ \HDUV EHIRUH WKH HYHQWV LQ TXHVWLRQ   %HUPDQ DOVR UHYHUVHG DQG UHPDQGHG %RJJVjV FDVH WR WKH WULDO FRXUW WR WHVWLILHG XQGHU FURVVH[DPLQDWLRQ WKDW VKH KDG EHHQ FRQGXFWDQLQFDPHUDKHDULQJ6HHLGDW XQGHUJRLQJWUHDWPHQWIRUVXEVWDQFHDEXVHDQGPHQWDOKHDOWK LQWKH\HDUVVLQFHWKDWKRVSLWDOL]DWLRQDOWKRXJKERWKVKHDQG 2Q 0D\   WKH WULDO FRXUW KHOG D KHDULQJ RQ KHUPRWKHUWHVWLILHGWKDWKHUFRQGLWLRQKDGLPSURYHGLQUHFHQW %HUPDQjV DOOHJHG SULRU IDOVH DFFXVDWLRQ RI UDSH  $W WKH \HDUVs$DW7KHZLWQHVVHVVSRNHDPELJXRXVO\DERXW KHDULQJ%HUPDQGHQLHGKDYLQJPDGHDQ\VXFKDFFXVDWLRQ WKHVSHFLILFPHQWDOLQILUPLW\%HUPDQVXIIHUHGQRWLQJWKDWVKH s$ DW   :KHQ %RJJV VRXJKW WR LQWURGXFH WKH ZDVmVRPHWLPHVlVFKL]RSKUHQLFRUVKRZHGmVFKL]RSKUHQLD FRQWUDGLFWRU\WHVWLPRQ\RI D@NH\ZLWQHVV UHODWLRQVKLS ZLWK %HUPDQ LQ WKH IRXU PRQWKV SULRU WR WKH ZDVDVFKL]RSKUHQLFZKDWVFKL]RSKUHQLDPHDQVDQGZKHWKHU DOOHJDWLRQVDJDLQVW%RJJV &UHGLWLQJ%HUPDQjVWHVWLPRQ\ LWDIIHFWVRQHjVSHUFHSWLRQVRIH[WHUQDOUHDOLW\l)GDW WKH FRXUW IRXQG QR UHDVRQ WR UHRSHQ WKH FDVH DQG GHQLHG  DQG *UHHQH ZKHUH WKH GHIHQVH ZDV mDEVROXWH>O\@ %RJJVjVUHTXHVWIRUDQHZWULDOs$DW SURKLELW>HG@l IURP LQTXLULQJ LQWR D NH\ ZLWQHVVjV UHFHQW KLVWRU\RIPHQWDOLQVWDELOLW\)GDW1RUGLGWKH 2Q0D\WKH2KLR&RXUWRI$SSHDOVDJDLQUHYHUVHG FRXUWDWDQ\SRLQWOLPLWRWKHUHYLGHQFHWKDWPD\KDYHIXUWKHU WKH WULDO FRXUW FRQFOXGLQJ WKDW %RJJV VKRXOG KDYH EHHQ  %RJJVY&ROOLQV 1R 1R %RJJVY&ROOLQV  SHUPLWWHGWR LQWURGXFHH[WULQVLFHYLGHQFHRIWKHSULRUIDOVH WK&LU FRXUWVKROGWKDWWKHGHFLVLRQRIZKHWKHURU DFFXVDWLRQDWWKHLQFDPHUDKHDULQJ6HH6WDWHY%RJJV QRWWRDOORZLQHYLGHQFHRIDZLWQHVVjVPHQWDOLOOQHVVIDOOV 1(G 2KLR&W$SS ,WUHPDQGHGIRUDQHZ ZLWKLQ WKH EURDG GLVFUHWLRQ RI WULDO FRXUWV DV WKH\ EDODQFH LQ FDPHUD KHDULQJ LQVWUXFWLQJ WKDW LI WKH SULRU DFFXVDWLRQV SRVVLEOHSUHMXGLFHYHUVXVSUREDWLYHYDOXH6HHHJ8QLWHG ZHUHXQIRXQGHGDQGGLGQRWLQYROYHVH[XDODFWLYLW\%RJJV 6WDWHVY0RRUH)G VW&LU  VWDWLQJ VKRXOGKDYHEHHQSHUPLWWHGWRFURVVH[DPLQHWKHZLWQHVVRQ WKDW WKH GLVWULFW FRXUW mKDV EURDG GLVFUHWLRQDU\ DXWKRULW\ WR WKLV LVVXH EHIRUH WKH MXU\ DQG WKDW D QHZ WULDO ZRXOG EH SURKLELWFURVVH[DPLQDWLRQlLQFOXGLQJWKHH[WHQWWRZKLFKLW UHTXLUHG6HHLGDW5HJDUGLQJ%RJJVjVFRQVWLWXWLRQDO DOORZV H[DPLQDWLRQ DERXW D ZLWQHVVjV FRQGLWLRQ RI PHQWDO DUJXPHQWWKHFRXUWFRQFOXGHGWKDWLWZDVERXQGE\WKH2KLR LQVWDELOLW\ %UH\HU &s  8QLWHG 6WDWHV Y %DUL  )G 6XSUHPH&RXUWjV FRQFOXVLRQWKDWWKH&RQIURQWDWLRQ&ODXVH  G&LU  ILQGLQJQRDEXVHRIGLVFUHWLRQ ZDV QRW LPSOLFDWHG  6HH LG  :KLOH WKH WULDO FRXUW KHOG D ZKHQ WULDO MXGJH ZRXOG QRW SHUPLW FURVVH[DPLQDWLRQ RQ VHFRQG LQ FDPHUD KHDULQJ SXUVXDQW WR WKLV UHPDQG %RJJV ZLWQHVVjV SULRU KRVSLWDOL]DWLRQ IRU VFKL]RSKUHQLD  8QLWHG DSSHDOHGWKHFRQVWLWXWLRQDODVSHFWRIWKHUXOLQJWRWKH2KLR 6WDWHV Y 6PLWK  )G   '& &LU   m2I 6XSUHPH&RXUW FRXUVH D KLVWRU\ RI PHQWDO LOOQHVV LV QRW QHFHVVDULO\ DGPLVVLEOH DV LPSHDFKPHQW HYLGHQFHl   )DFWRUV D FRXUW 2Q$XJXVWDIWHUKDYLQJFRQGXFWHGDQLQFDPHUD VKRXOGFRQVLGHULQDOORZLQJLQVXFKHYLGHQFHDUHWKHQDWXUHRI KHDULQJLQZKLFK&RSDVDQG WKH ZLWQHVVjV@ SRVVLEOH ELDV RU PRWLYHl  8QLWHG 6WDWHV Y TXHVWLRQHG E\ WKH SROLFH DERXW WKH DOOHJDWLRQ )LQDOO\ %HUPDQ WHVWLILHG 6RFLHW\RI,QGHS*DVROLQH0DUNHWHUVRI$P)G DW WKH KHDULQJ 6KH FODLPHG WKDW VKH RQO\ WROG &RSDV WKDW 7@KH UHVWULFWLRQV LPSRVHG WRWDOO\ SUHFOXGHG KLP IURP  8QLWHG6WDWHVY/LQGVWURP)G LQWURGXFLQJHYLGHQFHZKLFKFRXOGKDYHXQGHUPLQHGWKH YLFWLPjV FUHGLELOLW\ DQG H[SRVHG KHU PRWLYHV DQG VWDWHRI PLQGDVUHODWHGGLUHFWO\WRWKHUDSHFKDUJHDWLVVXHls$DW    7KH FRXUW IXUWKHU FRQFOXGHG WKDW WKH HUURU ZDV QRW 2XU FDUH LQ DGKHULQJ WR WKLV GLVWLQFWLRQ DULVHV LQ SDUW IURP WKH KDUPOHVV  7KH GLVWULFW FRXUW UHMHFWHG HDFK RI WKH 6WDWHjV JHQHUDO FRQFHUQ UDLVHG E\ WKH 2KLR 6XSUHPH &RXUW WKDW D FOHDUO\ REMHFWLRQV DQG DGRSWHG WKH PDJLVWUDWH FRXUWjV UHSRUW DQG DUWLFXODWHG UXOH ZKHWKHU LW EH D UXOH RI FRQVWLWXWLRQDO ODZ RU RQH RI UHFRPPHQGDWLRQ HYLGHQFH EH DSSOLHG FRQVLVWHQWO\ 6HH JHQHUDOO\ %RJJV   1(G DW  VWDWLQJ WKDW HYLGHQWLDU\ UXOH VKRXOG QRW EH DSSOLHG GLIIHUHQWO\ mPHUHO\ EHFDXVH WKH FKDUJH LV RQH LQYROYLQJ D VH[XDO DVVDXOWl  7R DOORZ %RJJV ,, WR SUHYDLO RQ KLV DUJXPHQW WKDW WKH &RQIURQWDWLRQ &ODXVH FRPSHOV FURVV H[DPLQDWLRQ HYHQ ZKHQ KLV SXUSRVH ZDV WR DWWDFN %HUPDQjV FUHGLELOLW\ 7KLVFRXUWUHYLHZVGHQRYRDGLVWULFWFRXUWjVJUDQWRIDZULW JHQHUDOO\ ZRXOG FDUYH RXW D WURXEOLQJ H[FHSWLRQ LQ WKH UDSH FRQWH[W WR DQ RIKDEHDVFRUSXV6HH%DUNHUY KHU ER\IULHQG@ *DU\ WKDWFURVVH[DPLQDWLRQLVPRUHWKDQDGHVLUDEOHUXOHRIWULDO 5RWKZHOO KDG EHDWHQ DQG UDSHG KHU EXW VKH GLG QRW ZDQW WR JHW 0U SURFHGXUH UDWKHU LW LV WKH mSULQFLSDO PHDQV E\ ZKLFK WKH 5RWKZHOO LQ WURXEOH VR VKH EODPHG '@HIHQVHFRXQVHOZDVQRWDWWHPSWLQJWRPRXQWDJHQHUDO  FLWLQJ9DQ$UVGDOO86DW ,QWKLVZD\WKH DWWDFN RQ WKH YLFWLPjV FUHGLELOLW\ EXW UDWKHU PRUH &RQIURQWDWLRQ&ODXVHmJXDUDQWHHVDQRSSRUWXQLW\IRUHIIHFWLYH SDUWLFXODUO\ WR VKRZ WKDW WKH YLFWLP    IDEULFDWHG WKH FURVVH[DPLQDWLRQQRWFURVVH[DPLQDWLRQWKDWLVHIIHFWLYHLQ UDSHFKDUJHVDJDLQVWSHWLWLRQHU>7@KHUHVWULFWLRQRQ ZKDWHYHU ZD\ DQG WR ZKDWHYHU H[WHQW WKH GHIHQVH PLJKW FURVVH[DPLQDWLRQSUHYHQWHGSHWLWLRQHUIURPGHYHORSLQJ ZLVKl  'HODZDUH Y )HQVWHUHU  86   IDFWVZKLFKPRUHSDUWLFXODUO\FRXOGKDYHXQGHUPLQHGWKH  HPSKDVLVLQRULJLQDO  YLFWLPjVFUHGLELOLW\DQGH[SRVHKHUPRWLYHVDQGVWDWHRI PLQGDVUHODWHGGLUHFWO\WRWKHUDSHFKDUJHDWKDQG 7KXV DOWKRXJK 'DYLV WUXPSHWV WKH YLWDO UROH FURVV >7@KHHYLGHQFHGHIHQVHFRXQVHOVRXJKWWRHOLFLWRQFURVV H[DPLQDWLRQ FDQ SOD\ LQ FDVWLQJ GRXEW RQ D ZLWQHVVjV H[DPLQDWLRQ ZDV KLJKO\ UHOHYDQW WR WKH LVVXHV RI WKH FUHGLELOLW\ QRW DOO FRQFHLYDEOH PHWKRGV RI XQGHUPLQLQJ YLFWLPjVFUHGLELOLW\DQGKHUPRWLYHVRUVWDWHRIPLQGLQ FUHGLELOLW\DUHFRQVWLWXWLRQDOO\JXDUDQWHHG,QSDUWLFXODUWKH EULQJLQJWKHUDSHFKDUJHDJDLQVWWKHSHWLWLRQHU 'DYLV&RXUWGLVWLQJXLVKHGEHWZHHQDmJHQHUDODWWDFNlRQWKH FUHGLELOLW\ RI D ZLWQHVVnLQ ZKLFK WKH FURVVH[DPLQHU s$DW6HHDOVR%RJJVjV%UDW UHSHDWLQJWKH mLQWHQGVWRDIIRUGWKHMXU\DEDVLVWRLQIHUWKDWWKHZLWQHVVj PDJLVWUDWH FRXUWjV ODQJXDJH WKDW WKH MXU\ mZDV HQWLWOHG WR FKDUDFWHULVVXFKWKDWKHZRXOGEHOHVVOLNHO\WKDQWKHDYHUDJH FRQVLGHU KHU PRWLYHV RU VWDWH RI PLQG LQ EULQJLQJ WKH UDSH WUXVWZRUWK\ FLWL]HQ WR EH WUXWKIXO LQ KLV WHVWLPRQ\lnDQG D FKDUJHVDJDLQVW0U%RJJVl HPSKDVLVDGGHG %XWGHVSLWH PRUH SDUWLFXODU DWWDFN RQ FUHGLELOLW\ mGLUHFWHG WRZDUG WKLVVHPDQWLFGLVWLQFWLRQZHVHDUFKLQYDLQIRUWKHPDJLVWUDWH UHYHDOLQJSRVVLEOHELDVHVSUHMXGLFHVRUXOWHULRUPRWLYHVDV FRXUWRU%RJJVWRKDYHSURYLGHGDQH[SODQDWLRQRI%HUPDQjV WKH\PD\UHODWHGLUHFWO\WRLVVXHVRUSHUVRQDOLWLHVLQWKHFDVH PRWLYHWRWHVWLI\IDOVHO\ DWKDQGl86DW7KH&RXUWFRQFOXGLQJWKDWm>W@KH SDUWLDOLW\RIDZLWQHVVLVDOZD\VUHOHYDQWDVGLVFUHGLWLQJ 7KLVVLOHQFHDVWRDWKHRU\RIPRWLYHVKDUSO\GLIIHUHQWLDWHV WKHZLWQHVVDQGDIIHFWLQJWKHZHLJKWRIWKHWHVWLPRQ\lIRXQG WKLVFDVHIURPWKRVHZKHUHFRXUWVKDYHIRXQG&RQIURQWDWLRQ WKLV ODWWHU W\SH RI DWWDFN WR EH SDUW RI WKH FRQVWLWXWLRQDOO\ &ODXVHYLRODWLRQV$VH[SODLQHGVXSUDDQDUWLFXODWHGWKHRU\ SURWHFWHG ULJKW RI FURVVH[DPLQDWLRQ  ,G  )DFHG ZLWK D WKDWDZLWQHVVKDGDPRWLYHWRIDEULFDWHOD\DWWKHKHDUWRIWKH VLWXDWLRQZKHUHDWULDOFRXUWEDUUHGFURVVH[DPLQDWLRQEHDULQJ 'DYLV DQG 9DQ $UVGDOO GHIHQVHV  6LPLODUO\ LQ 2OGHQ WKH RQ D ZLWQHVVjV ELDV DQG PRWLYH WR WHVWLI\ WKH &RXUW 6XSUHPH&RXUWIRXQGFRQVWLWXWLRQDOO\LPSURSHUWKHFRXUWjV UHIXVDOWRDOORZWHVWLPRQ\RIDQDFFXVHUjVUHODWLRQVKLSZLWK  ,Q WKH WULDO XQGHUO\LQJ WKH 'DYLV DSSHDO 'DYLV FKDUJHG ZLWK EXUJODU\ ZDV EDUUHG IURP VKRZLQJ WKDW D NH\ ZLWQHVV DJDLQVW KLP ZDV RQ DWWHPSWHG WR DUWLFXODWH D WKHRU\ RI ELDV RU SUHMXGLFH RQ DSSHDO 5DWKHU SUREDWLRQ IRU EXUJODU\ 'DYLV DUJXHG DW WULDO WKDW KH ZDV QRW VHHNLQJ WR HYHQ DIWHU FURVVH[DPLQLQJ %HUPDQ DERXW WKH SULRU LQFLGHQW LQ ODWHU LQWURGXFH WKDW HYLGHQFH WR LPSHDFK WKH ZLWQHVVjV FKDUDFWHU JHQHUDOO\ KHDULQJV %RJJV KDV HPSKDVL]HG RQO\ %HUPDQjV JHQHUDO FUHGLELOLW\ 5DWKHU KH DLPHG WR VKRZ WKDW WKH ZLWQHVV ZDV ELDVHG LQ WHVWLI\LQJ EHFDXVH 0RUHRYHU XQOLNH %XUU ZH GR QRW ILQG D ELDV RU PRWLYH WKHRU\ WR EH KH ZDV WU\LQJ WR VKLHOG VXVSLFLRQV RI KLV RZQ LQYROYHPHQW LQ WKH FULPH mDSSDUHQWl IURP HLWKHU WKH DUJXPHQWV KH KDV VLQFH PDGH RU IURP WKH WULDO DQG EHFDXVH KH PD\ KDYH IHDUHG WKDW KLV RZQ SUREDWLRQ ZDV LQ MHRSDUG\ UHFRUG 6HH LG DW   %RJJVY&ROOLQV 1R 1R %RJJVY&ROOLQV  FRQFOXGHG WKDW WKH FRXQWHUYDLOLQJ VWDWH LQWHUHVWV mFDQQRW ZRXOGEHOHVVOLNHO\WKDQWKHDYHUDJHWUXVWZRUWK\FLWL]HQWREH UHTXLUH \LHOGLQJ RI VR YLWDO D FRQVWLWXWLRQDO ULJKW DV WKH WUXWKIXOLQKLVWHVWLPRQ\l86DW HIIHFWLYHFURVVH[DPLQDWLRQIRUELDVRIDQDGYHUVHZLWQHVVl ,GDW,QDFRQFXUUHQFHsXVWLFH6WHZDUWXQGHUVFRUHGWKDW %XW WKLV HPSKDVLV RQ %HUPDQjV JHQHUDO FUHGLELOLW\ WKH&RQIURQWDWLRQ&ODXVHZDVLPSOLFDWHGRQO\EHFDXVH'DYLV RYHUORRNV WKH IXQGDPHQWDO GLVWLQFWLRQ GUDZQ LQ 'DYLV DQG ZDVVHHNLQJWRVKRZELDVRUSUHMXGLFHm>7@KH&RXUWQHLWKHU 9DQ$UVGDOO1RPDWWHUKRZFHQWUDODQDFFXVHUjVFUHGLELOLW\ KROGV QRU VXJJHVWV WKDW WKH &RQVWLWXWLRQ FRQIHUV D ULJKW LQ LVWRDFDVHnLQGHHGKHUFUHGLELOLW\ZLOODOPRVWDOZD\VEHWKH HYHU\ FDVH WR LPSHDFK WKH JHQHUDO FUHGLELOLW\ RI D ZLWQHVV FRUQHUVWRQHRIDUDSHRUVH[XDODVVDXOWFDVHHYHQLIWKHUHLV WKURXJKFURVVH[DPLQDWLRQlDERXWSDVWFRQYLFWLRQV,GDW SK\VLFDOHYLGHQFHnWKH&RQVWLWXWLRQGRHVQRWUHTXLUHWKDWD 6WHZDUWsFRQFXUULQJ  GHIHQGDQWEHJLYHQWKHRSSRUWXQLW\WRZDJHDJHQHUDODWWDFN RQ FUHGLELOLW\ E\ SRLQWLQJ WR LQGLYLGXDO LQVWDQFHV RI SDVW ,Q9DQ$UVGDOOWKH&RXUWHPSKDVL]HGWKDW'DYLVDQGSULRU FRQGXFW,QRWKHUZRUGV%RJJVjVDUJXPHQWWKDWFUHGLELOLW\LV GHFLVLRQV UHFRJQL]HG WKDW mµWKH H[SRVXUH RI D ZLWQHVVj FUXFLDOWRWKLVFDVHDQGWKDWWKHUHIRUHDQ\HYLGHQFHEHDULQJRQ PRWLYDWLRQLQWHVWLI\LQJLVDSURSHUDQGLPSRUWDQWIXQFWLRQRI WKDWFUHGLELOLW\PXVWEHDOORZHGLQVLPSO\GRHVQRWUHIOHFW WKH FRQVWLWXWLRQDOO\ SURWHFWHG ULJKW RI FURVV H[DPLQDWLRQjl 6L[WK$PHQGPHQWFDVHODZ8QGHU'DYLVDQGLWVSURJHQ\WKH 86DW TXRWLQJ'DYLV86DW ,W 6L[WK $PHQGPHQW RQO\ FRPSHOV FURVVH[DPLQDWLRQ LI WKDW WKHQHODERUDWHGWKDWmDFULPLQDOGHIHQGDQWVWDWHVDYLRODWLRQRI H[DPLQDWLRQDLPVWRUHYHDOWKHPRWLYHELDVRUSUHMXGLFHRID WKH&RQIURQWDWLRQ&ODXVHE\VKRZLQJWKDWKHZDVSURKLELWHG ZLWQHVVDFFXVHU  %HFDXVH KH IDLOHG WR DUWLFXODWH VXFK DQ IURP HQJDJLQJ LQ RWKHUZLVH DSSURSULDWH FURVVH[DPLQDWLRQ DUJXPHQWHLWKHUDWWULDORURQDSSHDODQGEHFDXVHWKHUHLVQRW GHVLJQHGWRVKRZDSURWRW\SLFDOIRUPRIELDVRQWKHSDUWRIWKH DSODXVLEOHWKHRU\RIPRWLYHRUELDVDSSDUHQWIURPWKHWULDO ZLWQHVVl,GDW HPSKDVLVDGGHG 7KH&RXUWWKHUHIRUH UHFRUG LQFOXGLQJ IURP WKH LQ FDPHUD KHDULQJV  RU IURP FULWLFL]HG  WKH WULDO FRXUWjV UHIXVDO WR DOORZ 9DQ $UVGDOO WR %RJJVjVDUJXPHQWVRQDSSHDO%RJJVKDVQRWGHPRQVWUDWHGD FURVVH[DPLQHDNH\SURVHFXWLRQZLWQHVVDERXWWKHIDFWWKDW &RQIURQWDWLRQ&ODXVHLQIUDFWLRQ FKDUJHV RI SXEOLF GUXQNHQQHVV KDG EHHQ GLVPLVVHG LQ H[FKDQJHIRUKLVWHVWLPRQ\6HHLGDW7KLVOLPLWDWLRQ IRUHFORVHG LQYHVWLJDWLRQ LQWR DQ HYHQW mWKDW D MXU\ PLJKW  :H QRWH WKDW RXU FRQFOXVLRQ LV QRW EDVHG VLPSO\ RQ WKH IDFW WKDW UHDVRQDEO\ KDYH IRXQG >WR KDYH@ IXUQLVKHG WKH ZLWQHVV D %RJJV GLG QRW DUWLFXODWH D ELDV RU PRWLYH MXVWLILFDWLRQ DW WKH WULDO LWVHOI $V PRWLYH IRU IDYRULQJ WKH SURVHFXWLRQ LQ KLV WHVWLPRQ\l DQG sXGJH QRZ sXVWLFH .HQQHG\ H[SODLQHG LQ %XUU Y 6XOOLYDQ  )G  WKHUHIRUHYLRODWHGWKH&RQIURQWDWLRQ&ODXVH,G&RXUWVDIWHU  WK &LU   D GHIHQGDQW LV QRW UHTXLUHG WR DUWLFXODWH D SUHFLVH 'DYLVDQG9DQ$UVGDOOKDYHDGKHUHGWRWKHGLVWLQFWLRQGUDZQ WKHRU\ RI ELDV DW WKH WULDO OHYHO WR PHULW FURVVH[DPLQDWLRQ RU WR ODWHU E\WKRVHFDVHVDQGE\sXVWLFH6WHZDUWLQKLVFRQFXUUHQFHnWKDW FKDOOHQJH WKH OLPLWDWLRQ RI WKDW FURVVH[DPLQDWLRQ DV KDYLQJ EHHQ LQ YLRODWLRQ RI WKH &RQIURQWDWLRQ &ODXVH 6HH DOVR $OIRUG Y 8QLWHG 6WDWHV FURVVH[DPLQDWLRQ DV WR ELDV PRWLYH RU SUHMXGLFH LV  86    QRWLQJ WKDW FURVVH[DPLQDWLRQ mLV QHFHVVDULO\ FRQVWLWXWLRQDOO\SURWHFWHGEXWFURVVH[DPLQDWLRQDVWRJHQHUDO H[SORUDWRU\ DQG WKH UXOH WKDW WKH H[DPLQHU PXVW LQGLFDWH WKH SXUSRVH RI FUHGLELOLW\LVQRW6HH2OGHQY.HQWXFN\86 KLV LQTXLU\ GRHV QRW LQ JHQHUDO DSSO\l  'RUVH\  )G DW  m>7@KH   ILQGLQJHUURULQDWULDOFRXUWjVUHIXVDOWRDOORZFURVV GHIHQVH LV QRW UHTXLUHG WR EH DEOH WR VWDWH EHIRUHKDQG H[DFWO\ ZKDW IDFWV H[DPLQDWLRQRQDUDSHYLFWLPjVH[WUDPDULWDOUHODWLRQVKLSZKHQ LW ZLVKHV WR HOLFLW    l  7KXV HYHQ WKRXJK D GHIHQGDQW LQDUWIXOO\ WKDW UHODWLRQVKLS ZRXOG KDYH VKRZQ WKH YLFWLPjV ELDV RU DUWLFXODWHG WR WKH WULDO FRXUW LWV SXUSRVH LQ FURVVH[DPLQLQJ D SURVHFXWLRQ ZLWQHVV sXGJH .HQQHG\ IRXQG WKH SRVVLELOLW\ RI ELDV RU SUHMXGLFH WR KDYH PRWLYDWLRQ 8QLWHG6WDWHVY$EHO86  EHHQ mDSSDUHQWl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jV SULPDU\ DQG 9DQ $UVGDOO LQ WKH FRQWH[W RI ZLWQHVV PRWLYDWLRQ DQG DUJXPHQWEHFDXVHLWLPSURSHUO\EOXUVWKHSUHFLVHGLVWLQFWLRQV ELDV  'RUVH\ Y 3DUNH  )G   WK &LU GUDZQ LQ &RQIURQWDWLRQ &ODXVH MXULVSUXGHQFH  1RW KDYLQJ  QRWLQJ WKDW LQ 'DYLV DQG LWV SURJHQ\ FRXUWV KDYH DUWLFXODWHGDQDUJXPHQWVRXQGLQJLQPRWLYHELDVRUSUHMXGLFH GLVWLQJXLVKHGmEHWZHHQWKHFRUHYDOXHVRIWKHFRQIURQWDWLRQ %RJJV LQVWHDG VHHNV WR HOHYDWH KLV SXUSRVHnDWWDFNLQJ ULJKWVDQGPRUHSHULSKHUDOFRQFHUQVZKLFKUHPDLQZLWKLQWKH %HUPDQjV JHQHUDO FUHGLELOLW\nLQWR D FRQVWLWXWLRQDOO\ DPELWRIWKHWULDOMXGJHjVGLVFUHWLRQl  PDQGDWHGULJKW+HDUJXHVWKDWEHFDXVH%HUPDQj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jV JHQHUDO 1RU FDQ ZH DFFHSW WKH UHDVRQLQJ RI WKH ORZHU FRXUWV LQ FUHGLELOLW\  ,Q +XJKHV Y 5DLQHV  )G  WK &LU JUDQWLQJWKHZULWRQWKLVJURXQG   WKH WULDO FRXUW UHIXVHG WR DOORZ GHIHQVH FRXQVHO WR FURVVH[DPLQHDQDOOHJHGUDSHYLFWLPDERXWDQDOOHJHGSULRU 7KHUHFRUGDQG%RJJVjVDUJXPHQWVRQDSSHDOVKRZWKDW IDOVH DFFXVDWLRQ RI UDSH  7KH 1LQWK &LUFXLW UHOLHG RQ WKH MXVWDVLQ+XJKHVDQG%DUWOHWW%RJJVjVSXUSRVHLQLQWURGXFLQJ GLVWLQFWLRQGUDZQLQ'DYLVmEHWZHHQDQDWWDFNRQWKHJHQHUDO WKH DOOHJHG SULRU IDOVH DFFXVDWLRQ ZDV WR DWWDFN %HUPDQjV FUHGLELOLW\ RI WKH ZLWQHVV DQG D PRUH SDUWLFXODU DWWDFN RQ JHQHUDO FUHGLELOLW\  %RWK DW WULDO DQG RQ DSSHDO %RJJV FUHGLELOLW\l WKURXJK UHYHDOLQJ ELDVHV SUHMXGLFHV RU XOWHULRU HVVHQWLDOO\FRQWHQGHGWKDWWKHHYLGHQFHZDVFUXFLDOEHFDXVHLI PRWLYHV  ,G DW   /RRNLQJ FORVHO\ DW WKH GHIHQGDQWjV %HUPDQOLHGRUIDEULFDWHGRQFHVKHZRXOGGRVRDJDLQ$WWKH SXUSRVHIRULQWURGXFLQJWKHWHVWLPRQ\WKH&RXUWIRXQGWKDW VLGHEDUGXULQJWKHWULDO%RJJVjVFRXQVHOH[SODLQHGm>6@KHjV WKHGHIHQVHZDVVLPSO\DVNLQJWKHMXU\WRPDNHDQLQIHUHQFH PDGHLWXSDJDLQ>@,ZDQWWRILQGRXWLIVKHjVPDGHXSDOORI mWKDW EHFDXVH WKH FRPSODLQLQJ ZLWQHVV PDGH D IDOVH WKLVl  s$ DW   ,Q KLV EULHI EHIRUH WKLV &RXUW %RJJV DFFXVDWLRQ RI DWWHPSWHG UDSH RQ D SULRU RFFDVLRQ KHU UHSHDWHGO\XQGHUVFRUHVWKHLPSRUWDQFHRIWKHSULRUDFFXVDWLRQ DFFXVDWLRQLQWKLVFDVHZDVIDOVHl,G,QRWKHUZRUGVWKH LQGLPLQLVKLQJ%HUPDQjVJHQHUDOFUHGLELOLW\6HH%RJJVjV%U LQWHQGHGFURVVH[DPLQDWLRQmZDVQRWWRHVWDEOLVKELDVDJDLQVW DW  m7KH GHIHQVH ZDV VLPSO\ VHHNLQJ WR JLYH WKH MXU\ WKHGHIHQGDQWRUIRUWKHSURVHFXWLRQLWPHUHO\ZRXOGKDYH DGGLWLRQDOHYLGHQFHZLWKZKLFKWRZHLJKWKHDOOHJHGYLFWLPjV EHHQWR DWWDFNWKHJHQHUDOFUHGLELOLW\RIWKHZLWQHVVRQWKH FUHGLELOLW\l LGDW m>7@KHNH\LVVXHLQWKHLQVWDQWFDVH EDVLVRIDQXQUHODWHGSULRULQFLGHQWl,G8QGHU'DYLVWKH ZDVWKHDFFXVHUjVFUHGLELOLW\7RQRWDOORZLQTXLU\LQWRKHU +XJKHV&RXUWFRQFOXGHGOLPLWLQJFURVVH[DPLQDWLRQIRUWKDW SULRU LQVWDQFHV RI XQWUXWKIXOQHVV LV WR UHQGHU WKH IHGHUDO SXUSRVHGLGQRWYLRODWHWKH&RQIURQWDWLRQ&ODXVH6HHLGDW FRQVWLWXWLRQDO JXDUDQWHH WR FRQIURQW DQG FURVVH[DPLQH  PHDQLQJOHVVl LGDW m7KHMXU\VKRXOGEHDEOHWRGHFLGH ZKDW ZHLJKW D SULRU IDOVH DFFXVDWLRQ KDV RQ WKH DOOHJHG 6LPLODUO\LQ8QLWHG6WDWHVY%DUWOHWW)G WK YLFWLPjV FUHGLELOLW\ QRW WKH WULDO MXGJHl  7KXV %RJJVjV &LU DUDSHGHIHQGDQWFKDOOHQJHGDVXQFRQVWLWXWLRQDO DUJXPHQW HFKRHV WKH 'DYLV &RXUWjV GHILQLWLRQ RI D JHQHUDO WKH GLVWULFW FRXUWjV UHIXVDO WR DGPLW HYLGHQFH RI D YLFWLPjV DWWDFNRQFUHGLELOLW\nZKHQDSDUW\mLQWHQGVWRDIIRUGWKHMXU\ DOOHJHGSULRUIDOVHDFFXVDWLRQRIUDSH/LNHWKH1LQWK&LUFXLW D EDVLV WR LQIHU WKDW WKH ZLWQHVVj FKDUDFWHU LV VXFK WKDW KH WKH (LJKWK &LUFXLW QRWHG WKH GLVWLQFWLRQ EHWZHHQ FURVV  %RJJVY&ROOLQV 1R 1R %RJJVY&ROOLQV  H[DPLQDWLRQ UHJDUGLQJ D ZLWQHVVDFFXVHUjV SRVVLEOH ELDVHV WKHIHGHUDOUDSHVKLHOGODZVHH)HG5(YLGWRDOORZ SUHMXGLFHV RU XOWHULRU PRWLYHV DQG FURVVH[DPLQDWLRQ DQG FURVVH[DPLQDWLRQDQGDGPLWHYLGHQFHWKDWKLVWKLUWHHQ\HDU HYLGHQFHLQWURGXFHGVLPSO\WRDWWDFNKHUJHQHUDOFUHGLELOLW\ ROGDFFXVHU DQGQLHFH KDGSUHYLRXVO\UHSRUWHGLQVWDQFHVRI 6HH LG DW   7KH FRXUW IRXQG WKDW WKH ODWWHU VH[XDODVVDXOWE\IDPLO\PHPEHUVEXWKDGODWHUZLWKGUDZQ SXUSRVHnDQGWKHLQIHUHQFHWKDWmEHFDXVHWKHYLFWLPPDGHD WKRVHDFFXVDWLRQV6HHLGDW&DUGLQDODUJXHGWKDWWKLV IDOVH DFFXVDWLRQ LQ WKH SDVW WKH LQVWDQW DFFXVDWLRQ LV DOVR HYLGHQFHVKRXOGKDYHEHHQDGPLWWHGEHFDXVHLWZHQWWRWKH IDOVHl LG DW nIHOO EHORZ WKH 6L[WK $PHQGPHQW FRPSODLQDQWjV FUHGLELOLW\  1RWLQJ WKH mZLGH GLVFUHWLRQl WKUHVKROG%HFDXVHLQWKHFDVHEHIRUHLWmWKHHYLGHQFHRIWKH HQMR\HGE\GLVWULFWFRXUWVRQVXFKHYLGHQWLDU\PDWWHUVnH[FHSW DOOHJHGSULRUIDOVHDFFXVDWLRQRIUDSHZDVRIIHUHGVROHO\WR LQ FDVHV ZKHUH DGPLVVLRQ ZDV mFRQVWLWXWLRQDOO\ DWWDFNWKHJHQHUDOFUHGLELOLW\RIlWKHYLFWLPWKHGLVWULFWFRXUWjV UHTXLUHGlnWKLV&RXUWGLGQRWILQGWKHORZHUFRXUWjVGHFLVLRQ UHIXVDO WR DOORZ WKH DWWHPSWHG FURVVH[DPLQDWLRQ GLG QRW WRKDYHEHHQDQDEXVHRIWKDWGLVFUHWLRQ6HHLGDW7KLV YLRODWH%DUWOHWWjVFRQIURQWDWLRQULJKWV,G2WKHUFRXUWVKDYH FRQFOXVLRQ DOVR QHFHVVDULO\ LPSOLHG WKDW WKH FURVV HFKRHGWKHUHDVRQLQJIURP+XJKHVDQG%DUWOHWW6HHHJ H[DPLQDWLRQ  ZDV QRW FRQVWLWXWLRQDOO\ UHTXLUHG  6HH DOVR +RJDQY+DQNV)G WK&LU  QRWLQJWKDW 8QLWHG6WDWHVY:LWKRUQ)G WK&LU  'DYLVDQGRWKHUFDVHVGLGQRWVXJJHVWWKDWmWKHORQJVWDQGLQJ UXOHV UHVWULFWLQJ WKH XVH RI VSHFLILF LQVWDQFHV DQG H[WULQVLF ,IDWULDOFRXUWKDVFXUWDLOHGFURVVH[DPLQDWLRQIURPZKLFK HYLGHQFH WR LPSHDFK D ZLWQHVVjV FUHGLELOLW\ SRVH D MXU\ FRXOG KDYH DVVHVVHG D ZLWQHVVjV ELDV SUHMXGLFH RU FRQVWLWXWLRQDOSUREOHPVl 8QLWHG6WDWHVY%HUNOH\1R PRWLYH WR WHVWLI\ D FRXUW PXVW WDNH WZR DGGLWLRQDO VWHSV :/DW  WK&LU  XQSXEOLVKHG )LUVW D UHYLHZLQJ FRXUW PXVW DVVHVV ZKHWKHU WKH MXU\ KDG RSLQLRQ  ILQGLQJWKDWDOOHJHGSULRUIDOVHDFFXVDWLRQKDGOLWWOH HQRXJKLQIRUPDWLRQGHVSLWHWKHOLPLWVSODFHGRQRWKHUZLVH UHOHYDQFHmWRWKHDFFXVHUjVFUHGLELOLW\RUYHUDFLW\UHVSHFWLQJ SHUPLWWHGFURVVH[DPLQDWLRQWRDVVHVVWKHGHIHQVHWKHRU\RI WKHFKDUJHEHLQJSURVHFXWHGl 5RZDQY.HUQDQ1R& ELDV RU LPSURSHU PRWLYH  6HH 'RUVH\  )G DW    :/  DW  1' &DO  6WHYHQVY%RUGHQNLUFKHU)G WK&LU  XQSXEOLVKHGRSLQLRQ  UHDGLQJ'DYLVDQG9DQ$UVGDOOWRVD\ 6HFRQGLIWKLVLVQRWWKHFDVHDQGWKHUHLVLQGHHGDGHQLDORU WKDW ZKLOH WKH FRQVWLWXWLRQ SURWHFWV FURVVH[DPLQDWLRQ LI LW VLJQLILFDQWGLPLQXWLRQRIFURVVH[DPLQDWLRQWKDWLPSOLFDWHV FRQFHUQVELDVPRWLYHRUSUHMXGLFHmJHQHUDODWWDFNVRQWKH WKH&RQIURQWDWLRQ&ODXVHWKH&RXUWDSSOLHVDEDODQFLQJWHVW FUHGLELOLW\ RI D ZLWQHVV GR QRW UDLVH WKH FRQVWLWXWLRQDO ZHLJKLQJ WKH YLRODWLRQ DJDLQVW WKH FRPSHWLQJ LQWHUHVWV DW FRQFHUQV ZKLFK WKH FRQIURQWDWLRQ FODXVH DGGUHVVHVl  VWDNH6HH&KDPEHUV86DW,Q'DYLVWKH&RXUW &KULVWRSKHU %RSVW 5DSH 6KLHOG /DZV DQG 3ULRU )DOVH IRXQGWKDWWKHVWDWHjVLQWHUHVWLQSURWHFWLQJWKHDQRQ\PLW\RI $FFXVDWLRQVRI5DSH7KH1HHGIRU0HDQLQJIXO/HJLVODWLYH DMXYHQLOHRIIHQGHUZDVQRWFRPSDUDEOHWRWKHmSDUDPRXQWl 5HIRUPs/HJLV   QRWLQJWKDWZKHWKHUDQ LQWHUHVWLQWKHULJKWWRVKRZWKHELDVRIDQDGYHUVHZLWQHVV,G DOOHJHGIDOVHDFFXVDWLRQRIUDSHPXVWEHDGPLWWHGXQGHUWKH DW,Q0LFKLJDQY/XFDV86  RQWKH &RQIURQWDWLRQ &ODXVH WXUQV RQ WKH GLVWLQFWLRQ EHWZHHQ RWKHUKDQGWKH&RXUWXSKHOGD0LFKLJDQUDSHVKLHOGVWDWXWHjV SURYLQJELDVRUSUHMXGLFHDQGSURYLQJJHQHUDOFUHGLELOLW\  QRWLFHDQGKHDULQJ UHTXLUHPHQW WKDW RSHUDWHG WR EDU FURVV H[DPLQDWLRQ LQ WKH FDVH LQ TXHVWLRQ  $OWKRXJK WKH &RXUW $OWKRXJKQRWGLUHFWO\DGGUHVVLQJWKH&RQIURQWDWLRQ&ODXVH FRQFOXGHGWKDWWKHUXOHFRXOGGLPLQLVKDGHIHQGDQWjVDELOLW\WR WKLV &RXUW DGKHUHG WR WKH ORJLF RI +XJKHV DQG %DUWOHWW  LQ FRQIURQW DGYHUVH ZLWQHVVHV LW IRXQG WKDW WKLV HIIHFW ZDV 8QLWHG 6WDWHV Y &DUGLQDO  )G  WK &LU   RXWZHLJKHGE\FRXQWHUYDLOLQJVWDWHLQWHUHVWVLQSURWHFWLQJUDSH &DUGLQDOZDVFRQYLFWHGIRUUDSHRQDQ,QGLDQUHVHUYDWLRQRQ YLFWLPVIURPVXUSULVHKDUDVVPHQWDQGXQQHFHVVDU\LQYDVLRQV DSSHDOKHFKDOOHQJHGWKHGLVWULFWFRXUWjVUHIXVDOSXUVXDQWWR RISULYDF\6HHLGDW
Source:  CourtListener

Can't find what you're looking for?

Post a free question on our public forum.
Ask a Question
Search for lawyers by practice areas.
Find a Lawyer