Brooks v. Oak Ridge
Brooks v. Oak Ridge
Opinion
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%(57 %522.6 ; 3ODLQWLII$SSHOODQW 1R Y ! &,7< 2) 2$. 5,'*( 'HIHQGDQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI7HQQHVVHHDW.QR[YLOOH 1R nsDPHV+sDUYLV'LVWULFWsXGJH $UJXHG 0DUFK 'HFLGHGDQG)LOHG sXO\ %HIRUH 1255,60225(DQG&2/(&LUFXLWsXGJHV BBBBBBBBBBBBBBBBB &2816(/ $5*8(' s 0LNHO 'L[RQ .QR[YLOOH 7HQQHVVHH IRU $SSHOODQW sRKQ & 'XII\ :$7621 +2//2: 5((9(6.QR[YLOOH7HQQHVVHHIRU$SSHOOHH21%5,() s0LNHO'L[RQ.QR[YLOOH7HQQHVVHHIRU$SSHOODQWsRKQ& 'XII\ :$7621 +2//2: 5((9(6 .QR[YLOOH 7HQQHVVHHIRU$SSHOOHH
%URRNVY&LW\RI2DN5LGJH 1R
0225(sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK &2/(sMRLQHG1255,6s S GHOLYHUHGDVHSDUDWH RSLQLRQFRQFXUULQJLQWKHUHVXOW BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB .$5(1 1(/621 0225( &LUFXLW sXGJH 3ODLQWLII DSSHOODQW5REHUW%URRNVDFLWL]HQRI2DN5LGJH7HQQHVVHH EURXJKWVXLWDJDLQVWWKHGHIHQGDQWDSSHOOHHWKH&LW\RI2DN 5LGJH m2DN 5LGJHl DOOHJLQJ WKDW WKH m)ULHQGVKLS %HOOl HUHFWHGLQDSXEOLFSDUNRQWKHILIWLHWKDQQLYHUVDU\RIWKHFLW\jV IRXQGLQJLVD%XGGKLVWV\PEROZKRVHSUHVHQFHUHVXOWVLQDQ HQGRUVHPHQW RI WKH %XGGKLVW UHOLJLRQ LQ YLRODWLRQ RI WKH (VWDEOLVKPHQW &ODXVHV RI WKH 86 DQG 7HQQHVVHH &RQVWLWXWLRQV 86 & $%DPHQG, 7 & $%DUW, 7KHGLVWULFWFRXUW JUDQWHGVXPPDU\MXGJPHQWWR2DN 5LGJH)LQGLQJQRFRQVWLWXWLRQDOYLRODWLRQLQWKHFLW\jVXVHRI WKH)ULHQGVKLS%HOOZH$)),50 ,%$&.*5281' ,QRUGHUWRFHOHEUDWHWKHILIWLHWKDQQLYHUVDU\RIWKH&LW\RI 2DN 5LGJH WKH 2DN 5LGJH &RPPXQLW\ )RXQGDWLRQ m)RXQGDWLRQl DSULYDWHQRQSURILWFRUSRUDWLRQFRQVWLWXWHG E\ 2DN 5LGJH FLWL]HQV VROLFLWHG SURSRVDOV IRU D FRPPHPRUDWLYHSURMHFWDQGXOWLPDWHO\FKRVHWKHGLVSOD\DW LVVXH LQ WKLV FDVH 7KH GHVLJQ IRU WKH FRPPHPRUDWLYH m)ULHQGVKLS%HOOlZDVVXEPLWWHGDQGGHYHORSHGE\WZR2DN 5LGJHFLWL]HQVQHLWKHURIZKRPZDVD%XGGKLVW'HVFULEHG LQ WKH )RXQGDWLRQjV EURFKXUH DV KRQRULQJ WKH 2DN 5LGJH FLWL]HQVZKRZRUNHGRQWKH0DQKDWWDQ3URMHFWGXULQJ:RUOG :DU,,GHPRQVWUDWLQJWKHKLVWRULFDOOLQNEHWZHHQ2DN5LGJH DQG sDSDQ DQG H[SUHVVLQJ KRSH IRU IXWXUH SHDFH DQG 1R %URRNVY&LW\RI2DN5LGJH
IULHQGVKLSDPRQJQDWLRQVWKHODUJHEURQ]H)ULHQGVKLS%HOO EHDUV D VWURQJ UHVHPEODQFH WR WKH EHOOV WKDW DUH IRXQG LQ %XGGKLVW WHPSOHV :HLJKLQJ IRXU WRQV WKH EHOO PHDVXUHV DSSUR[LPDWHO\VL[DQGRQHKDOIIHHWWDOODQGIRXUDQGRQHKDOI IHHWLQGLDPHWHU2QWKHH[WHULRURIWKHEHOODUHNQREVDQG WZRODUJHSDQHOVEHDULQJLPDJHVDVVRFLDWHGZLWKsDSDQDQG 7HQQHVVHHLQFOXGLQJWKHRIILFLDOIORZHUVELUGVDQGWUHHVRI HDFK7KHVXUIDFHRIWKHEHOOLVLQVFULEHGZLWKWKHIROORZLQJ ZRUGV m,QWHUQDWLRQDO)ULHQGVKLSlm3HDFHlm3HDUO+DUERU 'HFHPEHU 9s 'D\ 6HSWHPEHU l DQG m+LURVKLPD$XJXVW 1DJDVDNL$XJXVW ls$ DW 3RVWPD$II 3KRWRJUDSKVRI%HOO 7KHEHOOLV DFFRPSDQLHG E\ D ODUJH ZRRGHQ VWULNHU DQG E\ D SODTXH FRQWDLQLQJWKHVHZRUGV )5,(1'6+,3%(// 7+,6 %521=( %(// :$6 '(6,*1(' ,1 2$. 5,'*($1'&$67,1s$3$1,1 726(59($6 $6<0%2/2)7+(%21'62))5,(1'6+,3$1' 0878$/ 5(*$5' 7+$7 +$9( '(9(/23(' %(7:((1 2$. 5,'*( $1' s$3$1 29(5 7+( 3$67),)7<<($56)5,(1'6+,30$'(62 08&+ 025( 0($1,1*)8/ %(&$86( 2) 7+( 7(55,%/(&21)/,&72):25/':$5,,:+,&+ 2$.5,'*(3/$<('68&+$6,*1,),&$1752/( ,1(1',1*7+,6%(//)857+(56(59(6$6$ 6<0%2/ 2) 285 0878$/ /21*,1* $1' 3/('*(72:25.)25)5(('20:(//%(,1* s867,&($1'3($&()25$//7+(3(23/(2) 7+(:25/',17+(<($5672&20( 7KHIROORZLQJZRUGVDSSHDULQDVPDOOHUIRQW *,9(1727+(3(23/(2)2$.5,'*(217+( 2&&$6,21 2) 7+(,5 7+ %,57+'$< %< 7+(
7KH FLW\ RI 2DN 5LGJH ZDV FUHDWHG LQ ZKHQ 3UHVLGHQW 5RRVHYHOW GHVLJQDWHG WKH DUHD ZKHUH WKH WRZQ QRZ VLWV DV WKH VLWH RI WKH m0DQKDWWDQ 3URMHFWl ZKLFK UHVXOWHG LQ WKH EXLOGLQJ RI WKH WZR DWRPLF ERPEV WKDW ZHUH GHSOR\HG E\ WKH 8QLWHG 6WDWHV LQ :RUOG :DU ,, %URRNVY&LW\RI2DN5LGJH 1R 1R %URRNVY&LW\RI2DN5LGJH
2$. 5,'*( &20081,7< )281'$7,21 $1' BBBBBBBBBBBBBBBBBBBBBBB )5,(1'6,17+(81,7('67$7(6s$3$1$1' 27+(51$7,216 &21&855(1&( BBBBBBBBBBBBBBBBBBBBBBB 2$.5,'*(7(11(66(( %2512):$5/,9,1*)253($&(*52:,1* $/$1(1255,6&LUFXLWsXGJHFRQFXUULQJ$OWKRXJK 7+528*+6&,(1&( , FRQFXU LQ WKH UHVXOW UHDFKHG E\ WKH PDMRULW\ , ZULWH VHSDUDWHO\ WR H[SUHVV P\ YLHZ WKDW SODLQWLII KDV IDLOHG WR s$DW 3KRWRJUDSKRI3ODTXH HVWDEOLVK WKDW WKH 2DN 5LGJH EHOO LV LQ IDFW D %XGGKLVW UHOLJLRXVV\PERO7KHFRQIOLFWLQJHYLGHQFHLQWKHUHFRUGDOVR 7KHEHOOZKLFKZDVSDLGIRUWKURXJKFRQWULEXWLRQVUDLVHG VXSSRUWV D FRQFOXVLRQ WKDW WKH EHOO LV D sDSDQHVH FXOWXUDO E\WKH)RXQGDWLRQZDVFDVWLQ.\RWRsDSDQDQGVKLSSHGWR REMHFW RU WKDW DQ\ UHVHPEODQFH WR D %XGGKLVW EHOO LV QRW 2DN5LGJH$QXPEHURI2DN5LGJHFLWL]HQVDVVRFLDWHGZLWK VXEVWDQWLDOHQRXJKWRJLYHWKH2DN5LGJHEHOOLWVHOIUHOLJLRXV WKH EHOO SURMHFW WUDYHOHG WR sDSDQ LQ RUGHU WR REVHUYH WKH VLJQLILFDQFH,WKHUHIRUHGRXEWZKHWKHUD/HPRQDQDO\VLVLV FDVWLQJFHUHPRQ\LQFOXGLQJFLW\FRXQFLOPDQ(G1HSKHZ,Q HYHQQHFHVVDU\LQWKLVVLWXDWLRQ,QDQ\FDVHDVWKHPDMRULW\ KLVGHSRVLWLRQWHVWLPRQ\1HSKHZGHVFULEHGWKHFHUHPRQ\ RSLQLRQQRWHVWKH2DN5LGJHEHOOSDVVHVWKH/HPRQWHVWDQG WKHUHIRUHGRHVQRWYLRODWHWKH(VWDEOLVKPHQW&ODXVHHYHQLILW >7@KHUHZDVDnVRPHNLQGRIDSHUVRQDPRQNWKH\ ZHUHVKRZQWREHDUHOLJLRXVV\PERO VDLGLQNLQGRIDQRUDQJHFDSHZKRZDVFKDQWLQJDOORI WKH WLPH DQG DW FHUWDLQ SRLQWV ZKHQ WKH\ WKRXJKW WKH PHWDOFRQWHQWKDGEHHQVXLWDEO\DGMXVWHGWKH\XQGHUWRRN VRPHFHUHPRQLDOV\PEROLFJHVWXUHVRISXWWLQJLQDUWLIDFWV >VXFKDVPDQXVFULSWVGRJZRRGWZLJVDQGORWXVEORRPV@ LQWRWKHPROWHQPHWDO s$DW 1HSKHZ'HS 1HSKHZDOVRWHVWLILHGWKDWKHZDV WROG WKDW WKH FHUHPRQ\ ZDV D FXOWXUDO WUDGLWLRQ WKDW ZDV QHFHVVDU\WRLPSDUWmVRXOlWRWKHEHOO$WRQHSRLQWGXULQJWKH FHUHPRQ\KHZDVWROGWRSUD\WRZKDWHYHU*RGKHZLVKHG 2QFHWKHEHOODUULYHGLQ2DN5LGJHWKH)RXQGDWLRQDUUDQJHG IRU D 8QLYHUVLW\ RI 7HQQHVVHH SURIHVVRU DQG DUFKLWHFW WR GHVLJQ D SDYLOLRQ WR KRXVH LW 7KH SDYLOLRQ D WULDQJXODU VWUXFWXUHPDGHRIRDNZRRGDQGFRYHUHGE\DFRSSHUURRI LQFRUSRUDWHVERWK(DVWHUQDQG:HVWHUQDUFKLWHFWXUDOVW\OHVDQG
1HSKHZjV DFFRXQW RI WKH FHUHPRQ\ ZDV FRQILUPHG E\ 3URIHVVRU 6WHYHQ +HLQH D VSHFLDOLVW LQ (DVW $VLDQ UHOLJLRQV ZKR YLHZHG D YLGHRWDSH RI WKH FHUHPRQ\ +HLQH DOVR DGGHG WKH RSLQLRQ WKDW WKH PDQXVFULSWV WRVVHG LQWR WKH PHWDO ZHUH SUD\HUV %URRNVY&LW\RI2DN5LGJH 1R 1R %URRNVY&LW\RI2DN5LGJH
,,$WKDW2DN5LGJHj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jV DFFHSWDQFH DQG GLVSOD\ RI WKH )ULHQGVKLS%HOOYLRODWHGWKH(VWDEOLVKPHQW&ODXVHRIWKH86 &RQVWLWXWLRQDQG$UWLFOH,RIWKH7HQQHVVHH&RQVWLWXWLRQ 2DN 5LGJH PRYHG IRU VXPPDU\ MXGJPHQW DQG WKH GLVWULFW FRXUWJUDQWHGWKHPRWLRQFRQFOXGLQJWKDWWKH)ULHQGVKLS%HOO GLVSOD\ ZDV FRQVWLWXWLRQDO XQGHU WKH WHVW ODLG RXW E\ WKH 6XSUHPH&RXUWLQ/HPRQY.XUW]PDQ86 DQGXQGHU7HQQHVVHHODZ7KLVWLPHO\DSSHDOIROORZHG ,,$1$/<6,6 $7KH)HGHUDO&RQVWLWXWLRQDO&KDOOHQJH :HUHYLHZGHQRYRWKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\ MXGJPHQW6HH*UDQ]HLHUY0LGGOHWRQ)G WK &LU ,Q HYDOXDWLQJ (VWDEOLVKPHQW &ODXVH FKDOOHQJHV WR JRYHUQPHQWDO DFWLRQV ZH DSSO\ WKH WHVW DUWLFXODWHGE\WKH6XSUHPH&RXUWLQ/HPRQY.XUW]PDQ,Q RUGHU WR SDVV (VWDEOLVKPHQW &ODXVH PXVWHU D VWDWXWH RU JRYHUQPHQWDO SUDFWLFH PXVW KDYH D VHFXODU SXUSRVH LWV SULPDU\ HIIHFW PXVW EH QHLWKHU WR DGYDQFH QRU WR LQKLELW UHOLJLRQ DQG LW PXVW QRW IRVWHU H[FHVVLYH JRYHUQPHQWDO HQWDQJOHPHQWZLWKUHOLJLRQ6HH/HPRQ86DW :KHQHYDOXDWLQJWKHmHIIHFWVlSURQJRIWKH/HPRQWHVWWKLV FRXUWDSSOLHVWKHHQGRUVHPHQWWHVWZKLFKZDVHPEUDFHGE\ WKH6XSUHPH&RXUWLQ&RXQW\RI$OOHJKHQ\Y$&/8 86 8QGHU WKH HQGRUVHPHQW WHVW mWKLV >F@RXUW FRQVLGHUVZKHWKHUDUHDVRQDEOHREVHUYHUZRXOGFRQFOXGHWKDW WKHJRYHUQPHQWHQGRUVHVUHOLJLRQE\DOORZLQJWKHSUDFWLFHLQ %URRNVY&LW\RI2DN5LGJH 1R 1R %URRNVY&LW\RI2DN5LGJH
TXHVWLRQl+DZOH\Y&LW\RI&OHYHODQG)G VLJQLILFDQFH)LQDOO\DOWKRXJK%URRNVK\SRWKHVL]HVWKDWWKH WK&LU 7KXVWKHHQGRUVHPHQWWHVWLV SDUWLFXODUO\ RUGLQDQFHUHJXODWLQJWKHULQJLQJRIWKHEHOOZDVDUHDFWLRQWR FRQFHUQHG ZLWK ZKHWKHU JRYHUQPHQWDO SUDFWLFHV FUHDWH D DSHUFHLYHGGDQJHUWKDWWKHEHOOZRXOGEHXVHGIRU%XGGKLVW mV\PEROLFXQLRQlRIFKXUFKDQGVWDWH$JRVWLQLY)HOWRQ SXUSRVHV WKH UHFRUG LQGLFDWHV WKDW WKH RUGLQDQFH LQVWHDG 86 UHIOHFWHG FRQFHUQV DERXW QRLVH DQG DERXW WKH SROLWLFDO FRQWURYHUV\RYHUWKHEHOO7KHUHIRUH2DN5LGJHjVGLVSOD\RI $V D WKUHVKROG PDWWHU KRZHYHU ZH PXVW ILUVW FRQVLGHU WKH EHOO GRHV QRW HQWDLO LPSHUPLVVLEOH HQWDQJOHPHQW ZLWK ZKHWKHUWKH)ULHQGVKLS%HOOLVDUHOLJLRXVV\PERODWDOO LIWKH UHOLJLRQ EHOO LV QRW DFWXDOO\ DVVRFLDWHG ZLWK %XGGKLVP LWV GLVSOD\ FDQQRW FRQYH\ WKH PHVVDJH WKDW WKH JRYHUQPHQW HQGRUVHV %7KH6WDWH&RQVWLWXWLRQDO&KDOOHQJH %XGGKLVP6HH$OYDUDGRY&LW\RI6DQsRVH )G WK&LU )OHLVFKIUHVVHUY'LUHFWRUVRI6FK $UWLFOH,RIWKH7HQQHVVHH&RQVWLWXWLRQSURYLGHV 'LVW)G WK&LU :HFRQFOXGH WKDWDOWKRXJKWKHEHOOKDVVHFXODUVLJQLILFDQFHLQs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sDSDQEXWDOVRLQ,QGLDDQG&KLQDWRUHJXODWHWKH 7KH 7HQQHVVHH FRXUWV KDYH DSSOLHG WKH /HPRQ DQG OLYHVRI%XGGKLVWPRQNVPDUNLQJWKHWLPHIRUSUD\HUPHDOV HQGRUVHPHQW WHVWV WR GHWHUPLQH ZKHWKHU JRYHUQPHQWDO DQGRWKHUGDLO\DFWLYLWLHV,QGHHGVXFKEHOOVZHUHDWRQHWLPH FRQGXFWJLYHVDQLPSHUPLVVLEOHSUHIHUHQFHWRUHOLJLRQXQGHU UHTXLUHGLWHPVLQDOOPRQDVWHULHV+HLQHDOVRQRWHGWKDWWKH $UWLFOH,6HH6WHHOHY:DWHUV6:G )ULHQGVKLS%HOOjVNQREVDUHFRQQHFWHGWRWKHWUDGLWLRQDO 7HQQ 0DUWLQ Y %HHU %G 6:G sDSDQHVH SUDFWLFH RI ULQJLQJ WKH %XGGKLVW WHPSOH EHOO 7HQQ&W$SS $OWKRXJKWKH7HQQHVVHH&RQVWLWXWLRQ WLPHV RQ 1HZ <HDUjV (YH WR DWRQH IRU WKH VLQV RU JXDUDQWHHV D VWURQJHU IUHH H[HUFLVH ULJKW WKDQ WKH IHGHUDO VKRUWFRPLQJVRIPDQNLQG+HLQHDOVRWHVWLILHGWKDWm>W@KH &RQVWLWXWLRQ VHH 0DUWLQ 6:G DW %URRNV KDV SRLQWHG WR QR MXGLFLDO GHFLVLRQV FRQVWUXLQJ WKH 7HQQHVVHH &RQVWLWXWLRQjV $UWLFOH , DV SURYLGLQJ IRU JUHDWHU 6LPLODUO\ WKH (QF\FORSHGLD RI 5HOLJLRQ H[SODLQV VHSDUDWLRQRIFKXUFKDQGVWDWHWKDQWKHIHGHUDO(VWDEOLVKPHQW $QRWKHU SRSXODU %XGGKLVW ULWXDO LV WKH 1HZ <HDU VHUYLFH $W &ODXVH:HWKHUHIRUHKROGIRUWKHUHDVRQVGLVFXVVHGLQ3DUW PLGQLJKW WKH WHPSOH JRQJV DUH VWUXFN WLPHV VLJQLI\LQJ WKH NLQGV RI EOLQG SDVVLRQV WKDW PXVW EH SXULILHG LQ WKH FRPLQJ \HDU $OWKRXJK 6KLQW w LQ RULJLQ DQG QDWXUH >WKH EHOO ULQJLQJ@ KDV EHFRPH SDUW RI WKH %XGGKLVW WUDGLWLRQ DQG LQ WKH WHPSOHV LW UHPDLQV WKH ILUVW LPSRUWDQW ULWXDO RI WKH 1HZ <HDU $FFRUGLQJ WR DW OHDVW RQH ZLWQHVV D QXPEHU RI 2DN 5LGJH FLWL]HQV 7KH VHUYLFH LV KHOG WR H[SUHVV JUDWLWXGH IRU WKH SDVW \HDU DQG WR H[SUHVVHG FRQFHUQ WKDW WKH )ULHQGVKLS %HOO LPSURSHUO\ UHSUHVHQWHG DQ UHVROYH WR ZDON WKH %XGGKLVW SDWK LQ WKH FRPLQJ \HDU ,W LQFOXGHV mDSRORJ\l WR sDSDQ IRU WKH ERPELQJ RI +LURVKLPD DQG 1DJDVDNL %URRNVY&LW\RI2DN5LGJH 1R 1R %URRNVY&LW\RI2DN5LGJH
UHDVRQDEOH REVHUYHU ZRXOG GHWHUPLQH WKDW WKH &LW\ RI 2DN VRXQGRIWKHEHOOLVDNLQGRIPDQWUDRUDFKDQWZKLFKKDVWKH 5LGJHLQWHQGHGWRHQGRUVHSHDFHDQGIULHQGVKLSZLWKsDSDQ NLQGRIVRXQGTXDOLW\WKDWFRQYH\VWKHXQLW\RIWKH&RVPRV QRW WKH %XGGKLVW UHOLJLRQ E\ DGRSWLQJ DQG GLVSOD\LQJ WKH RU LQ WKLV FDVH WKH RQHQHVV RI WKH %XGGKDl s$ DW )ULHQGVKLS%HOO)XUWKHUPRUHWKHQHZVSDSHUDUWLFOHVZULWWHQ +HLQH$II )LQDOO\+HLQHREVHUYHGWKDWWKHEHOOLVVWURQJO\ E\SULYDWHLQGLYLGXDOVDOOHJHGO\LPSXWLQJTXDVLUHOLJLRXV EXW DVVRFLDWHGZLWK%XGGKLVWPRQDVWHULHVLQWKDWWKHVKDSHRID QRWSDUWLFXODUO\RUXQLTXHO\%XGGKLVW VLJQLILFDQFHWRWKHEHOO EHOOLVXVHGWRLQGLFDWHD%XGGKLVWWHPSOHRQDPDSPXFKDV ZRXOG QRW ZH EHOLHYH FKDQJH WKH UHDVRQDEOH REVHUYHUjV FURVVHV LQGLFDWH &KULVWLDQ FKXUFKHV DQG VRXYHQLU EHOOV DUH XQGHUVWDQGLQJ RI ZKHWKHU WKH JRYHUQPHQW ZDV HQGRUVLQJ RIWHQVROGDWRUQHDU%XGGKLVWWHPSOHV %XGGKLVP :H WKHUHIRUH KROG WKDW WKH )ULHQGVKLS %HOO GLVSOD\ LQ FRQWH[W GRHV QRW KDYH WKH HIIHFW RI HQGRUVLQJ $GGLWLRQDOUHOLJLRXVFRQQRWDWLRQVDUHLPSXWHGWRWKHEHOOE\ UHOLJLRQ RWKHUVRXUFHV2QHDXWKRURSLQHVIRUH[DPSOHWKDWWKHGHHS YLEUDWLQJ VRXQG RI WKH EHOO HFKRHV mWKH SHFXOLDU PRRG RI 6LPLODUO\ ZH ILQG QR LPSHUPLVVLEOH JRYHUQPHQWDO µHPSWLQHVVj ZKLFK LV WKH JRDO RI PHGLWDWLYH %XGGKLVW HQWDQJOHPHQWZLWKUHOLJLRQm>7@RDVVHVVHQWDQJOHPHQWZH P\VWLFLVPl DQG ZDV EHOLHYHG WR UHDFK EH\RQG WKH HDUWKO\ KDYHORRNHGWRµWKHFKDUDFWHUDQGSXUSRVHRIWKHLQVWLWXWLRQV UHDOP mHYHQ WR SXUJDWRU\ ZKHUH WKH VRXQG FRPIRUWHG WKH WKDW DUH EHQHILWWHG WKH QDWXUH RI WKH DLG WKDW WKH 6WDWH VXIIHULQJDQGNHSWDOLYHWKHLUKRSHWKDWWKH\WRRPLJKWILQDOO\ SURYLGHV DQG WKH UHVXOWLQJ UHODWLRQVKLS EHWZHHQ WKH WUDYHOWKHSDWKWRVDOYDWLRQl',(75,&+ 6(&.(/ %8''+,67 JRYHUQPHQWDQGUHOLJLRXVDXWKRULW\jl&ROHVY&OHYHODQG%G $57 2) ($67 $6,$ 8OULFK0DPPLW]VFKWUDQV RI(GXF)G WK&LU TXRWLQJ$JRVWLQL )XUWKHUPRUHWKHEHOOWRZHUjVSODFHPHQWLQWKHWHPSOHDORQJ 86 DW DOWHUDWLRQ LQ RULJLQDO 3ROLWLFDO ZLWKRWKHUDX[LOLDU\VWUXFWXUHVVXUURXQGLQJWKHWHPSOHjVPDLQ GLYLVLYHQHVV PD\ EH VRPH HYLGHQFH RI H[FHVVLYH EXLOGLQJKDVEHHQVDLGWRV\PEROL]HmWKHFRPPXQLRQRIVDLQWV HQWDQJOHPHQW VHH /HPRQ 86 DW EXW DURXQGWKHFHQWUDO%XGGKDl0 $1(6$., %8''+,67 $57 ,1 GLYLVLYHQHVV DORQH LQ WKH DEVHQFH RI DGPLQLVWUDWLYH ,76 5(/$7,21 72 %8''+,67 ,'($/6 7KXV HQWDQJOHPHQW LV QRW HQRXJK WR UHQGHU D SUDFWLFH DOWKRXJKWKH%XGGKLVWEHOOVDUHDOVRFXOWXUDODUWLIDFWVRIWHQ XQFRQVWLWXWLRQDOVHH$&/8Y&LW\RI%LUPLQJKDP )G DGPLUHGIRUWKHLUDUWLVWLFTXDOLW\VHHHJ+ +$&.0$11 WK&LU FHUWGHQLHG 86 %8''+,60 $6 $ 5(/,*,21 ,76 +,6725,&$/ '(9(/230(17 %URRNV SRLQWV WR VHYHUDO IDFWRUV DV GHPRQVWUDWLQJ $1' ,76 35(6(17 &21',7,216 WKHEHOOVDUH HQWDQJOHPHQW WKHFLW\j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j HYLGHQWLDU\ VXEPLVVLRQV WKLVEDVLV6HH%LUPLQJKDP )GDW m6LQFHWKH DORQH LQ LWV (VWDEOLVKPHQW &ODXVH DQDO\VLV 7KH 6XSUHPH &RXUW KDV FLW\RZQHGWKHFUHFKHDQGQRFKXUFKRURWKHUUHOLJLRXVHQWLW\ URXWLQHO\ UHIHUUHG WR VHFRQGDU\ VRXUFHV LQ RUGHU WR GHWHUPLQH ZKHWKHU D
ZDVLQYROYHGLQWKHDQQXDOGLVSOD\WKHUHZDVQRHYLGHQFHRI UHOLJLRXV V\PERO FRQVWLWXWHV D JRYHUQPHQWDO HQGRUVHPHQW RI UHOLJLRQ EHFDXVH WKLV TXHVWLRQ LV QRW PHUHO\ RQH RI KLVWRULFDO IDFW EXW UDWKHU mLQ HQWDQJOHPHQWl 0RUHRYHU WKHUH LV QR HYLGHQFH WKDW WKH ODUJH SDUW D OHJDO TXHVWLRQ WR EH DQVZHUHG RQ WKH EDVLV RI MXGLFLDO FRQWURYHUV\ RYHU WKH DGRSWLRQ RI WKH )ULHQGVKLS %HOO LQWHUSUHWDWLRQ RI VRFLDO IDFWVl /\QFK Y 'RQQHOO\ 86 FRQFHUQHG WKH EHOOjV UHOLJLRXV DV RSSRVHG WR LWV SROLWLFDO 2j&RQQRU s FRQFXUULQJ VHH DOVR $OOHJKHQ\ 86 DW Q 2SLQLRQ RI %ODFNPXQ s %URRNVY&LW\RI2DN5LGJH 1R 1R %URRNVY&LW\RI2DN5LGJH
FOHDUO\ WLHG WR WKH %XGGKLVW UHOLJLRQ DV ULWXDO LPSOHPHQWV EURDGO\:HEHOLHYHWKDWWKH(VWDEOLVKPHQW&ODXVHUHJXODWHV LQYHVWHGZLWKV\PEROLFVLJQLILFDQFH:HWKHUHIRUHILQGLW JRYHUQPHQWDO FRQGXFW LQYROYLQJ UHOLJLRQ RQO\ DQG QRW WKH DSSURSULDWHWRDSSO\WKH/HPRQWHVWWR2DN5LGJHjVGLVSOD\RI RIILFLDO H[SUHVVLRQ RI VHQWLPHQWV WKDW PD\ KDYH UHOLJLRXV WKH)ULHQGVKLS%HOO FRXQWHUSDUWVVXFKDVVRUURZDQGUHSHQWDQFHWRZDUGKLVWRULFDO HYHQWV OLNH WKH ERPELQJ RI +LURVKLPD DQG 1DJDVDNL 6HH $SSO\LQJWKHILUVWSURQJRIWKH/HPRQWHVWZHKDYHOLWWOH $OYDUDGR )GDW GLIILFXOW\LQFRQFOXGLQJWKDW2DN5LGJHjVSXUSRVHLQDGRSWLQJ WKH )ULHQGVKLS %HOO ZDV VHFXODU 1HDU WKH WLPH RI WKH :HQH[WFRQVLGHUZKHWKHUWKHEHOOKDGWKHLPSHUPLVVLEOH GLVSOD\jVLQVWDOODWLRQ2DN5LGJHDGRSWHGDIRUPDOVWDWHPHQW HIIHFWRIHQGRUVLQJUHOLJLRQ,QPDNLQJWKLVGHWHUPLQDWLRQ RI SXUSRVH UHJDUGLQJ WKH )ULHQGVKLS %HOO 7KDW VWDWHPHQW m>E@RWKWKHFRQWHQWDQGWKHFRQWH[WRIWKHUHOLJLRXVGLVSOD\ DUWLFXODWHG WZR UHDVRQV IRU GLVSOD\LQJ WKH EHOO ILUVW m>W@R PXVW EH DQDO\]HG DQG WKH FRQVWLWXWLRQDOLW\ RI D GLVSOD\jV FHOHEUDWHWKHSDVWILIW\\HDUVRIJURZLQJIULHQGVKLSDQGSHDFH HIIHFW PXVW EH MXGJHG DFFRUGLQJ WR WKH VWDQGDUG RI D ZLWK sDSDQl DQG VHFRQG m>W@R H[SUHVV IRU WKH IXWXUH WKH UHDVRQDEOHREVHUYHUl.XQVHOPDQY:HVWHUQ5HVHUYH/RFDO SURIRXQGORQJLQJDQGFRPPLWPHQWWRZRUNIRUIUHHGRPZHOO 6FK 'LVW )G WK &LU HPSKDVLV LQ EHLQJMXVWLFHDQGSHDFHIRUDOOWKHSHRSOHRIWKHZRUOGls$ RULJLQDO :HKROGWKDWWKHUHDVRQDEOHREVHUYHUZRXOGQRW DW )ULHQGVKLS%HOO6WDWHPHQWRI3XUSRVH 7KHVHSXUSRVHV XQGHUVWDQGWKH)ULHQGVKLS%HOOGLVSOD\LQFRQWH[WWRFRQYH\ DUH HFKRHG LQ WKH ODQJXDJH RI WKH H[SODQDWRU\ SODTXH WKDW WKH PHVVDJH WKDW WKH JRYHUQPHQW RI 2DN 5LGJH HQGRUVHV DFFRPSDQLHVWKHEHOOGLVSOD\m8QOHVVLWVHHPVWREHDVKDP %XGGKLVP:HEHOLHYHWKDWWKHSODTXHH[SODLQLQJWKHVHFXODU WKHJRYHUQPHQWjVDVVHUWLRQRIDOHJLWLPDWHVHFXODUSXUSRVH PHDQLQJ RI WKH GLVSOD\ KHOSV WR QHJDWH DQ\ LQIHUHQFH RI LVHQWLWOHGWRGHIHUHQFHl&KDXGKXULY6WDWHRI7HQQHVVHH HQGRUVHPHQW WKDW PLJKW RWKHUZLVH DULVH 6HH $&/8 Y )G WK &LU FHUW GHQLHG 86 :LONLQVRQ )G WK &LU 7KH :HKDYHQRUHDVRQWREHOLHYHWKDW2DN5LGJHjV SULPDULO\VHFXODULPDJHVDQGZRUGVLQVFULEHGRQWKHEHOOjV DVVHUWHGSXUSRVHVZHUHDVKDP%URRNVVXJJHVWVWKDWWKHEHOO H[WHULRUZRXOGKDYHDVLPLODUHIIHFW)XUWKHUPRUHZHDVVXPH ZDVLQWHQGHGLQSDUWWRV\PEROL]HDWRQHPHQWWRsDSDQIRU2DN WKDW WKH UHDVRQDEOH REVHUYHU ZRXOG NQRZ DERXW WKH EHOO 5LGJHjV UROH LQ :RUOG :DU ,, DQG WKDW WKLV SXUSRVH LV FDVWLQJFHUHPRQ\DVZHOODVDERXWWKHKLVWRU\RIWKHEHOOjV WDQWDPRXQWWRDUHOLJLRXVSXUSRVHEHFDXVHWKHERPELQJRI DGRSWLRQ DV D FHOHEUDWRU\ GLVSOD\ IRU 2DN 5LGJHjV ILIWLHWK +LURVKLPD KDV DFTXLUHG D UHOLJLRXV VLJQLILFDQFH IRU PDQ\ ELUWKGD\DQGWKHFLW\jVRIILFLDOVWDWHPHQWRIVHFXODUSXUSRVHWR SHRSOH :H GHFOLQH WR UHDG WKH (VWDEOLVKPHQW &ODXVH VR FRPPHPRUDWH2DN5LGJHjVKLVWRULFFRQQHFWLRQWRsDSDQDQG WRH[SUHVVDGHVLUHIRULQWHUQDWLRQDOSHDFHDQGIULHQGVKLS6HH &DSLWRO6TXDUH5HYLHZ $GYLVRU\%GY3LQHWWH86 2j&RQQRU s FRQFXUULQJ LQ SDUW DQG %URRNV VXJJHVWV WKDW WKH EHOO LV VXFK DQ LPSRUWDQW V\PERO RI %XGGKLVP WKDW LW LV DQDORJRXV WR WKH FUXFLIL[ LQ &KULVWLDQLW\ $V RXU FRQFXUULQJ LQ MXGJPHQW WDNLQJ DQ H[SDQVLYH YLHZ RI WKH GLVFXVVLRQ GHPRQVWUDWHV ZH EHOLHYH WKDW WKLV DVVHUWLRQ LV H[DJJHUDWHG UHDVRQDEOH REVHUYHUj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mVDQFWLILFDWLRQl RI WKH ERPELQJ RI +LURVKLPD 7KHVH DUWLFOHV ZHUH H[WHQVLYHO\ GLVFXVVHG LQ %URRNVjV PDWHULDOV EXW ZHUH QRW DFWXDOO\ LQFOXGHG LQ WKH UHFRUG DQG DUH QRW EHIRUH WKLV FRXUW
Reference
- Status
- Published