Howard v. Comm Social Security

U.S. Court of Appeals for the Sixth Circuit

Howard v. Comm Social Security

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21  +RZDUGY&RPPjURI6RFLDO6HFXULW\ 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU

FDXVH IRU WKH IDLOXUH WR LQFRUSRUDWH VXFK HYLGHQFH LQWR WKH )LOH 1DPH DS

UHFRUG LQ D SULRU SURFHHGLQJl   86&  †  J   $ VHQWHQFHVL[UHPDQGLVFRPSDUDEOHWRD)HG5&LY3 E PRWLRQIRUDQHZWULDOEDVHGRQQHZO\GLVFRYHUHGHYLGHQFH 81,7('67$7(6&28572)$33($/6 1RUPDOO\ ZKHQ QHZ HYLGHQFH LV GLVFRYHUHG GXULQJ WKH SHQGHQF\RIDQDSSHDOWKHSDUW\EULQJLQJDUXOH E PRWLRQ )257+(6,;7+&,5&8,7 ZLOOILUVWILOH LW ZLWKWKHGLVWULFWFRXUW,IWKHGLVWULFWFRXUW BBBBBBBBBBBBBBBBB LQGLFDWHVWKDWLWLVZLOOLQJRUOLNHO\WRJUDQWWKHPRWLRQWKH SDUW\ ZLOO WKHQ EULQJ D PRWLRQ LQ WKH DSSHDOV FRXUW mIRU D UHPDQGRIWKHFDVHLQRUGHUWKDWWKH'LVWULFW&RXUWPD\JUDQW s,00,( / +2:$5' ; WKH PRWLRQ IRU QHZ WULDOl  )LUVW 1DWjO %DQN RI 6DOHP Y 3ODLQWLII$SSHOODQW  +LUVFK)G WK&LU     1R :HKDYHQHYHUDGGUHVVHGZKHWKHUWKHUXOH E SURFHGXUH Y  IRUQHZHYLGHQFHGLVFRYHUHGGXULQJWKHSHQGHQF\RIDQDSSHDO ! DOVR DSSOLHV WR PRWLRQV EURXJKW XQGHU VHQWHQFH VL[ RI   &200,66,21(5 2) 62&,$/  86&† J %RWKWKH6HFRQGDQGWKH1LQWK&LUFXLWKDYH 6(&85,7< DGGUHVVHG WKLV TXHVWLRQ DQG KDYH KHOG WKDW WKH UXOH  E  SURFHGXUH VKRXOG EH IROORZHG XQOHVV WKH DSSHOODWH FRXUW LV 'HIHQGDQW$SSHOOHH  DEOHWRGHWHUPLQHWKDWDQHZKHDULQJLVUHTXLUHGDVDPDWWHURI  ODZsRQHVY6XOOLYDQ  )G G&LU  *RHUJ 1 Y6FKZHLNHU)G WK&LU  :HQRZ $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW FKRRVH WR DGRSW WKLV DSSURDFK  7KXV EHFDXVH WKH QHZ IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW HYLGHQFH SURIIHUHG E\ +RZDUG LV QRW VR FRPSHOOLQJ WKDW D 1R  n5REHUW+&OHODQG'LVWULFWsXGJH UHPDQGLVUHTXLUHGDVDPDWWHURIODZZHKROGWKDW+RZDUG VKRXOG KDYH IROORZHG WKH UXOH  E  SURFHGXUH IRU QHZ $UJXHG sXO\ HYLGHQFHGLVFRYHUHGGXULQJWKHSHQGHQF\RIDQDSSHDO+HU PRWLRQLVGHQLHGZLWKRXWSUHMXGLFH 'HFLGHGDQG)LOHG sDQXDU\ 5(9(56('DQG5(0$1'('027,21'(1,(' %HIRUH &/$<*,/0$1DQG:$//$&(&LUFXLW sXGJHV

7KH +RQRUDEOH s &OLIIRUG :DOODFH 6HQLRU &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU WKH 1LQWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ

  +RZDUGY&RPPjURI6RFLDO6HFXULW\ 1R 1R +RZDUGY&RPPjURI6RFLDO6HFXULW\ 

BBBBBBBBBBBBBBBBB +RZDUGDOVRFRQWHQGVWKDWWKH$/sPLVFKDUDFWHUL]HGWKH WUHDWPHQWQRWHVZKHQKHFRQFOXGHGWKDWWKH\FRQWDLQHGRQO\ &2816(/ mD IHZ VFDWWHUHG EORRG SUHVVXUH UHDGLQJVl RU EHFDXVH KH VWDWHG WKDW WKH UHFRUGV GRFXPHQW mQR HGHPD LQ WKH $5*8('   /HZLV 0 6HZDUG 6(:$5' 7$//< H[WUHPLWLHVl:KLOHLWDSSHDUVWRXVWKDWWKHVHFRQFOXVLRQVDUH 3,**277%D\&LW\0LFKLJDQIRU$SSHOODQW(GZDUG3 ZURQJ DQG LQGLFDWLYH RI WKH $/sjV VHOHFWLYH DSSURDFK WR 6WXG]LQVNL 62&,$/ 6(&85,7< $'0,1,675$7,21 HYLGHQFH VXPPDWLRQ WKH\ DUH QRW VXIILFLHQWO\ ZHLJKW\ WR 2)),&( 2) 7+( *(1(5$/ &2816(/ 5(*,21 9 FRPSHO XV WR FRQFOXGH WKDW WKH $/sjV mRWKHU ZRUNl &KLFDJR ,OOLQRLV IRU $SSHOOHH  21 %5,()   /HZLV 0 GHWHUPLQDWLRQ ZDV XQUHDVRQDEOH RU ZDV XQVXSSRUWHG E\ 6HZDUG 6(:$5' 7$//<  3,**277 %D\ &LW\ VXEVWDQWLDOHYLGHQFH 0LFKLJDQ IRU $SSHOODQW  (GZDUG 3 6WXG]LQVNL 62&,$/ 6(&85,7< $'0,1,675$7,21 2)),&( 2) 7+( +RZDUGIXUWKHUDUJXHVWKDWWKH$/sPLVFKDUDFWHUL]HGKHU *(1(5$/&2816(/5(*,219&KLFDJR,OOLQRLVIRU GDLO\DFWLYLWLHVWKDWZHUHUHFRUGHGLQKHUGDLO\DFWLYLW\FKDUWV $SSHOOHH 6KH DUJXHV WKDW WKH $/s GLG QRW JLYH FUHGHQFH WR KHU FRPSODLQWV RI SDLQ LQ WKRVH FKDUWV  7KH $/s KRZHYHU BBBBBBBBBBBBBBBBB GHWHUPLQHGWKDW+RZDUGjVFRPSODLQWVRISDLQZHUHmOHVVWKDQ IXOO\ FUHGLEOHl  &UHGLELOLW\ GHWHUPLQDWLRQV DUH HQWLWOHG WR 23,1,21 FRQVLGHUDEOHGHIHUHQFH/HHY6XOOLYDQ )G   BBBBBBBBBBBBBBBBB WK&LU  %HFDXVH+RZDUGjVLQFRQVLVWHQWWHVWLPRQ\ SURYLGHVDUHDVRQDEOHEDVLVIRUWKLVFUHGLELOLW\GHWHUPLQDWLRQ s &/,))25' :$//$&( 6HQLRU &LUFXLW sXGJH  $Q WKH $/sjV FKDUDFWHUL]DWLRQ RI KHU GDLO\ DFWLYLWLHV DQG DGPLQLVWUDWLYHODZMXGJH $/s GHQLHG+RZDUGjVDSSOLFDWLRQ FRQVHTXHQWO\DQ\SRUWLRQRIKLVXOWLPDWHFRQFOXVLRQDERXWKHU IRU6RFLDO6HFXULW\GLVDELOLW\EHQHILWVILQGLQJWKDW+RZDUG DELOLW\WRSHUIRUPmRWKHUZRUNlWKDWLVGHSHQGHQWXSRQLWLV ZDV QRW GLVDEOHG EHFDXVH VKH FRXOG SHUIRUP D VLJQLILFDQW VXSSRUWHGE\VXEVWDQWLDOHYLGHQFH QXPEHURIMREVLQWKHHFRQRP\GHVSLWHKHULPSDLUPHQWV7KH $SSHDOV&RXQFLOGHQLHG+RZDUGjVUHTXHVWIRUUHYLHZOHDYLQJ 7KXV WKH GLVWULFW FRXUWjV MXGJPHQW LV UHYHUVHG DQG WKH$/sjVGHFLVLRQDVWKHILQDOGHFLVLRQRIWKH6RFLDO6HFXULW\ UHPDQGHGWRWKHGLVWULFWFRXUW7KHGLVWULFWFRXUWLVGLUHFWHG &RPPLVVLRQHU &RPPLVVLRQHU &)5† WRUHPDQGWKHDFWLRQWRWKH&RPPLVVLRQHUZLWKLQVWUXFWLRQVWR UHFRQVLGHU+RZDUGjVDSSOLFDWLRQLQDPDQQHUFRQVLVWHQWZLWK +RZDUG VRXJKW UHYLHZ RI WKH &RPPLVVLRQHUjV ILQDO WKLVRSLQLRQ GHFLVLRQ LQ GLVWULFW FRXUW SXUVXDQW WR  86& †  J  UHVXOWLQJLQWKHGLVWULFWFRXUWDIILUPLQJWKH&RPPLVVLRQHUjV ,, GHFLVLRQ+RZDUGDSSHDOV:HKDYHMXULVGLFWLRQSXUVXDQWWR 86&† DQG86&† J  +RZDUGDVNVWKLV&RXUWDVDQDOWHUQDWLYHWRDUHYHUVDOWR UHPDQGKHUFDVHWRWKH&RPPLVVLRQHUXQGHUVHQWHQFHVL[RI +RZDUGDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGZKHQLWXSKHOG  86& †  J  IRU LW WR FRQVLGHU WKH 'LVDELOLW\ WKH &RPPLVVLRQHUjV ILQGLQJ WKDW VKH ZDV QRW GLVDEOHG DQG 'HWHUPLQDWLRQ6HUYLFHjV0DUFKGHWHUPLQDWLRQWKDW FRXOGSHUIRUPDVLJQLILFDQWQXPEHURIMREVLQWKHHFRQRP\ VKHLVGLVDEOHGDVRIWKDWGDWH6HQWHQFHVL[SURYLGHVWKDWD ,QWKHDOWHUQDWLYH+RZDUGEULQJVDPRWLRQWRUHPDQGXQGHU FRXUWmPD\DWDQ\WLPHRUGHUDGGLWLRQDOHYLGHQFHWREHWDNHQ VHQWHQFHVL[RI86&† J :HGHQ\WKHPRWLRQEXW EHIRUH WKH >&RPPLVVLRQHU@ EXW RQO\ XSRQ D VKRZLQJ WKDW UHYHUVHDQGUHPDQGRQWKHPHULWV WKHUHLVQHZHYLGHQFHZKLFKLVPDWHULDODQGWKDWWKHUHLVJRRG  +RZDUGY&RPPjURI6RFLDO6HFXULW\ 1R 1R +RZDUGY&RPPjURI6RFLDO6HFXULW\ 

ILQGLQJWKDWWKH\mFRQVLVW>@PRVWO\RIKDQGZULWWHQJREEOHJRRN , QRWHVIURPWKHGRFWRUlWKDWKDYHmQRSUREDWLYHYDOXHLQWKLV FDVHl  7KH QRWHV UHSUHVHQW WZHQW\VL[ YLVLWV EHWZHHQ :HDSSO\WKHVDPHVWDQGDUGRIUHYLHZDVWKHGLVWULFWFRXUW 0DUFK DQG1RYHPEHU 7KHXSSHUOHIWKDQG DQGZLOOXSKROGWKH&RPPLVVLRQHUjVGHFLVLRQLILWLVVXSSRUWHG FRUQHURIHDFKSDJHFRQWDLQVDVSDFHIRUWKHGRFWRUWRUHFRUG E\VXEVWDQWLDOHYLGHQFH :LOOEDQNVY6HFj\RI+HDOWKDQG WKHSDWLHQWjVFRPSODLQW7KHORZHUOHIWKDQGFRUQHUFRQWDLQV +XPDQ6HUYV)G WK&LU  6XEVWDQWLDO D VSDFH IRU WKH GRFWRU WR UHFRUG KLV LPSUHVVLRQV  7KHVH HYLGHQFH LV mVXFK UHOHYDQW HYLGHQFH DV D UHDVRQDEOH PLQG FRPELQHG UHSRUWV FRQWDLQ QXPHURXV OHJLEOH UHIHUHQFHV WR PLJKW DFFHSW DV DGHTXDWH WR VXSSRUW D FRQFOXVLRQl +RZDUGjV DLOPHQWV  7KH\ LQFOXGH WHQ UHIHUHQFHV WR 5LFKDUGVRQY3HUDOHV86     K\SHUWHQVLRQLQWKHFRPSODLQWVSDFH VHYHQRIWKHVHUHIHUHQFHV ZRUGHGDVWKHGRFWRUjVILQGLQJVRURSLQLRQVQRWFRPSODLQWV +RZDUGjV6RFLDO6HFXULW\GLVDELOLW\GHWHUPLQDWLRQLVPDGH DQGWHQUHIHUHQFHVWRK\SHUWHQVLRQLQWKHLPSUHVVLRQVSDFH LQ DFFRUGDQFH ZLWK D ILYH VWHS VHTXHQWLDO DQDO\VLV  )LUVW ILYHUHIHUHQFHVWRGHJHQHUDWLYHGLVFGLVHDVHLQWKHFRPSODLQW +RZDUGPXVWGHPRQVWUDWHWKDWVKHLVQRWFXUUHQWO\HQJDJHGLQ VSDFH IRXU RI WKHVH UHIHUHQFHV ZRUGHG DV WKH GRFWRUjV VXEVWDQWLDOJDLQIXOHPSOR\PHQWDWWKHWLPHRIWKHGLVDELOLW\ ILQGLQJVRURSLQLRQVQRWFRPSODLQWV DQGILYHUHIHUHQFHVWR DSSOLFDWLRQ&)5† E 6HFRQG+RZDUGPXVW WKHVDPHLQWKHLPSUHVVLRQVSDFH VL[UHIHUHQFHVWRDUWKULWLVLQ VKRZWKDWVKHVXIIHUVIURPDVHYHUHLPSDLUPHQW&)5 WKHULJKWNQHHLQWKHFRPSODLQWVSDFH IRXURIWKHVHUHIHUHQFHV † F 7KLUGLI+RZDUGLVQRWHQJDJHGLQVXEVWDQWLDO ZRUGHGDVWKHGRFWRUjVILQGLQJVRURSLQLRQVQRWFRPSODLQWV JDLQIXOHPSOR\PHQWDQGKDVDVHYHUHLPSDLUPHQWZKLFKLV DQGVL[UHIHUHQFHVWRWKHVDPHLQWKHLPSUHVVLRQVSDFH IRXU H[SHFWHGWRODVWIRUDWOHDVWWZHOYHPRQWKVZKLFKPHHWVRU UHIHUHQFHVWRGHSUHVVLRQLQWKHFRPSODLQWVSDFH WKUHHRIWKHVH HTXDOVDOLVWHGLPSDLUPHQWVKHZLOOEHFRQVLGHUHGGLVDEOHG UHIHUHQFHVZRUGHGDVWKHGRFWRUjVILQGLQJVRURSLQLRQVQRW ZLWKRXWUHJDUGWRDJHHGXFDWLRQDQGZRUNH[SHULHQFH FRPSODLQWV DQGILYHUHIHUHQFHVWRWKHVDPHLQWKHLPSUHVVLRQ &)5† G )RXUWKLIWKH&RPPLVVLRQHUFDQQRW VSDFH  WKUHH UHIHUHQFHV WR SDQLF DWWDFNV WZR RI WKHVH PDNH D GHWHUPLQDWLRQ RI GLVDELOLW\ EDVHG RQ PHGLFDO UHIHUHQFHVZRUGHGDVWKHGRFWRUjVILQGLQJVRURSLQLRQVQRW HYDOXDWLRQV DQG FXUUHQW ZRUN DFWLYLW\ DQG +RZDUG KDV D FRPSODLQWV DQGWKUHHUHIHUHQFHVWRWKHVDPHLQWKHLPSUHVVLRQ VHYHUH LPSDLUPHQW WKH &RPPLVVLRQHU ZLOO WKHQ UHYLHZ VSDFH WKUHHUHIHUHQFHVWRDQHPLDLQWKHFRPSODLQWVSDFH WZR +RZDUGjV UHVLGXDO IXQFWLRQDO FDSDFLW\ 5)&  DQG UHOHYDQW RI WKHVH ZRUGHG DV WKH GRFWRUjV ILQGLQJV RU RSLQLRQV QRW SDVWZRUNWRGHWHUPLQHLIVKHFDQGRSDVWZRUN LIVRVKHLV FRPSODLQWV DQGWKUHHUHIHUHQFHVWRWKHVDPHLQWKHLPSUHVVLRQ QRWGLVDEOHG&)5† H 7KH$/sGHWHUPLQHG VSDFH  WZR UHIHUHQFHV WR QHUYRXVQHVV RU DQ[LHW\ LQ WKH WKDWWKHILUVWIRXUSDUWVGLGQRWHQWLWOH+RZDUGWRGLVDELOLW\ FRPSODLQWVSDFHDQGRQHLQWKHLPSUHVVLRQVSDFH DVZHOODV EHQHILWV VR WKLV FDVH WXUQV RQ WKH ILIWK  LI +RZDUGjV UHIHUHQFHV WR WHQLWLV P\DOJLD HGHPD DOOHUJLHV DU\WKPLD LPSDLUPHQW SUHYHQWV KHU IURP GRLQJ SDVW ZRUN WKH EXUVLWLVRIWKHULJKWVKRXOGHUDQGDUWKULWLVRIWKHFHUYLFDOLQ &RPPLVVLRQHUZLOOFRQVLGHUKHU5)&DJHHGXFDWLRQDQGSDVW WKHLPSUHVVLRQVSDFHDWOHDVWRQFH,QGHHGWKHVHWUHDWPHQW ZRUNH[SHULHQFHWRGHWHUPLQHLIVKHFDQSHUIRUPRWKHUZRUN QRWHV UHSUHVHQW D VXEVWDQWLDO SRUWLRQ RI +RZDUGjV UHOHYDQW ,IVKHFDQQRWSHUIRUPRWKHUZRUNWKH&RPPLVVLRQHUZLOOILQG PHGLFDO KLVWRU\ IURP ZKLFK 'U /HYLQjV FRQFOXVLRQV ZHUH KHUGLVDEOHG&)5† I 7KH&RPPLVVLRQHU GUDZQ  7KH\ DUH RIWHQ LOOHJLEOH EXW DV RXU UHYLHZ KDVWKHEXUGHQRISURRIRQO\RQmWKHILIWKVWHSSURYLQJWKDW GHPRQVWUDWHVPRUHRIWHQQRW%HFDXVHWKH$/sGLVUHJDUGHG WKHUHLVZRUNDYDLODEOHLQWKHHFRQRP\WKDWWKHFODLPDQWFDQ WKLVVLJQLILFDQWSRUWLRQRIWKHUHFRUGDVKDYLQJQRSUREDWLYH SHUIRUPl+HUY&RPPjURI6RF6HF)G  WK YDOXHKLVGHFLVLRQWKDW+RZDUGFRXOGSHUIRUPmRWKHUZRUNl &LU  LVQRWVXSSRUWHGE\VXEVWDQWLDOHYLGHQFH  +RZDUGY&RPPjURI6RFLDO6HFXULW\ 1R 1R +RZDUGY&RPPjURI6RFLDO6HFXULW\

7RPHHWWKHEXUGHQRIVKRZLQJWKDW+RZDUGFRXOGSHUIRUP DQGPHQWDOLPSDLUPHQWV DGHIHFWZKLFKDVZHKDYHVWDWHGLV ZRUN WKDW LV DYDLODEOH LQ WKH QDWLRQDO HFRQRP\ WKH IDWDOWRWKH9(jVWHVWLPRQ\DQGWKH$/sjVUHOLDQFHXSRQLW &RPPLVVLRQHUPXVWPDNHDILQGLQJmVXSSRUWHGE\VXEVWDQWLDO HYLGHQFHWKDW>+RZDUG@KDVWKHYRFDWLRQDOTXDOLILFDWLRQVWR 7KDWSRUWLRQRIWKHK\SRWKHWLFDOTXHVWLRQGUDZQIURPWKH SHUIRUPVSHFLILFMREVl9DUOH\Y6HFj\RI+HDOWK +XPDQ PHGLFDOUHSRUWLQ([KLELWLVLQFRPSOHWH,WWHOOVXVZKDW 6HUYV  )G    WK &LU     7KLV NLQG RI +RZDUGFDQGREXWWHOOVXVQRWKLQJDERXW+RZDUGjVDLOPHQWV m>V@XEVWDQWLDOHYLGHQFHPD\EHSURGXFHGWKURXJKUHOLDQFHRQ 7KH$/sVKRXOGKDYHLQFOXGHGWKHGLDJQRVLVIURPWKDWVDPH WKHWHVWLPRQ\RIDYRFDWLRQDOH[SHUW 9( LQUHVSRQVHWRD UHSRUW ZKLFK VWDWHV WKDW +RZDUG VXIIHUV IURP GHJHQHUDWLYH µK\SRWKHWLFDOjTXHVWLRQEXWRQO\µLIWKHTXHVWLRQDFFXUDWHO\ GLVF GLVHDVH LURQ GHILFLHQF\ DQHPLD K\SHUWHQVLRQ DQG SRUWUD\V >+RZDUGjV@ LQGLYLGXDO SK\VLFDO DQG PHQWDO RVWHRDUWKULWLV7KH$/sGLGILQGWKDW+RZDUGVXIIHUHGIURP LPSDLUPHQWVjl,G FLWDWLRQVRPLWWHG  GHJHQHUDWLYHGLVFGLVHDVHDQGRVWHRDUWKULWLV%XWWKLVILQGLQJ ZDVQRWLQFOXGHGLQWKHK\SRWKHWLFDOTXHVWLRQSRVHGWRWKH9( 7DNLQJLQWRDFFRXQW+RZDUGjV5)&DJHHGXFDWLRQSDVW DVLWVKRXOGKDYHEHHQ ZRUNH[SHULHQFHDQGWKHWHVWLPRQ\RIWKHYRFDWLRQDOH[SHUW 9( WKH$/sGHWHUPLQHGWKDW+RZDUGZDVDEOHWRSHUIRUP )XUWKHUDVZHVWDWHGHDUOLHUWKH$/sIDLOHGWRLQFOXGH'U RWKHUZRUNDQGZDVWKHUHIRUHQRWGLVDEOHG+RZDUGDUJXHV /HYLQjVXQFRQWUDGLFWHGFRQFOXVLRQVLQ([KLELW%HFDXVH WKDWVXEVWDQWLDOHYLGHQFHGRHVQRWVXSSRUWWKLVGHWHUPLQDWLRQ WKHK\SRWKHWLFDOTXHVWLRQGLGQRWLQFOXGHWKHGLDJQRVLVSRUWLRQ RI([KLELWRUWKHGLDJQRVLVDQGHYDOXDWLRQLQ([KLELWLW $ GRHVQRWDFFXUDWHO\SRUWUD\+RZDUGjVFRQGLWLRQ%HFDXVHWKH 9(jV WHVWLPRQ\ ZDV EDVHG XSRQ WKLV LQDFFXUDF\ LW FDQQRW +RZDUG ILUVW DUJXHV WKDW VXEVWDQWLDO HYLGHQFH GRHV QRW VHUYHDVVXEVWDQWLDOHYLGHQFHIRUWKH$/sjVFRQFOXVLRQWKDW VXSSRUWWKH$/sjVFRQFOXVLRQWKDWVKHFRXOGSHUIRUPRWKHU +RZDUGFRXOGSHUIRUPmRWKHUZRUNl ZRUN EHFDXVH WKH $/sjV IRUPXODWLRQ RI WKH 5)& DQG WKH K\SRWKHWLFDO TXHVWLRQ SRVHG WR WKH 9( GR QRW mDFFXUDWHO\ )LQDOO\WKDWSRUWLRQRIWKHK\SRWKHWLFDOTXHVWLRQWDNHQIURP SRUWUD\>KHU@LQGLYLGXDOSK\VLFDODQGPHQWDOlLPSDLUPHQWV ([KLELWGRHVQRWDFFXUDWHO\SRUWUD\+RZDUGjVPHQWDOVWDWH ,QWHUHVWLQJO\WKH$/sXOWLPDWHO\IRXQGWKDW+RZDUGKDGWKH 7KH$/sSRVHGWZRK\SRWKHWLFDOTXHVWLRQVWRWKH9(,Q PDMRUGHSUHVVLYHGLVRUGHUGHVFULEHGLQWKLVH[KLELW+HGLG WKHILUVWKHDVNHGZKHWKHUWKHUHZHUHDQ\MREVLQWKHUHJLRQ QRW KRZHYHU LQFOXGH WKLV ILQGLQJ LQ WKH K\SRWKHWLFDO IRUDSHUVRQZLWKWKHOLPLWDWLRQVWHVWLILHGWRE\+RZDUG7KH TXHVWLRQ7KXVWKHK\SRWKHWLFDOTXHVWLRQGRHVQRWSDLQWDQ 9(DQVZHUHGWKDWWKHUHZHUHQRW7KH$/sWKHQGLVFRXQWHG DFFXUDWHSLFWXUHRI+RZDUGjVLPSDLUPHQWVDQGWKHWHVWLPRQ\ +RZDUGjVSDLQWHVWLPRQ\DQGUHOLHGXSRQIRXUH[KLELWVLQWKH RIWKH9(LQUHOLDQFHXSRQWKHK\SRWKHWLFDOTXHVWLRQLVQRW UHFRUGWRIRUPXODWHDVHFRQGK\SRWKHWLFDOTXHVWLRQ7KH$/s VXEVWDQWLDOHYLGHQFHIRUWKH$/sjVFRQFOXVLRQWKDW+RZDUG DVNHG WKH 9( ZKHWKHU D SHUVRQ ZLWK VXFK FKDUDFWHULVWLFV FRXOGSHUIRUPmRWKHUZRUNl ZRXOGEHDEOHmWRSHUIRUPWKHIXOOUDQJHVRIOLJKWPHGLXP DQG KHDY\ XQVNLOOHG ZRUNl  7KH 9( UHVSRQGHG WKDW D  mPDMRULW\ RI WKH MREV LQ DOO H[HUWLRQDO OHYHOV FRXOG VWLOO EH SHUIRUPHGl E\ VXFK D SHUVRQ DQG SURFHHGHG WR LGHQWLI\ +RZDUGDOVRDUJXHVWKDWWKH$/sPLVFKDUDFWHUL]HGPXFKRI VHYHUDOVSHFLILFMREVDQGWKHQXPEHURIRSHQLQJVIRUWKRVH WKHHYLGHQFHLQKLVGHFLVLRQWRVXFKDGHJUHHWKDWKLVGHFLVLRQ MREV LQ WKH UHJLRQ  7KH $/sjV GHWHUPLQDWLRQ RI +RZDUGjV FDQQRWEHVXSSRUWHGE\VXEVWDQWLDOHYLGHQFH)LUVW+RZDUG 5)&LVLQVXEVWDQFHWKHVDPHDVWKLVVHFRQGK\SRWKHWLFDO DUJXHVWKDWWKH$/sVKRXOGKDYHJLYHQZHLJKWWRWKHWUHDWPHQW TXHVWLRQ QRWHVLQ([KLELW7KH$/sGLVPLVVHGWKHWUHDWPHQWQRWHV  +RZDUGY&RPPjURI6RFLDO6HFXULW\ 1R 1R +RZDUGY&RPPjURI6RFLDO6HFXULW\ 

$VZHVDLGWKH5)&LVPHDQWWRGHVFULEHWKHFODLPDQWjV +RZDUGjV5)&LVWREHDQmDVVHVVPHQWRI>KHU@UHPDLQLQJ UHVLGXDODELOLWLHVRUZKDWDFODLPDQWFDQGRQRWZKDWPDODGLHV FDSDFLW\IRUZRUNlRQFHKHUOLPLWDWLRQVKDYHEHHQWDNHQLQWR DFODLPDQWVXIIHUVIURPoWKRXJKWKHPDODGLHVZLOOFHUWDLQO\ DFFRXQW&)5† ,WLVDQDVVHVVPHQWRIZKDW LQIRUPWKH$/sjVFRQFOXVLRQDERXWWKHFODLPDQWjVDELOLWLHV,Q +RZDUGFDQDQGFDQQRWGRQRWZKDWVKHGRHVDQGGRHVQRW WKLVSRUWLRQRIWKH5)&WKH$/s GHVFULEHVERWK+RZDUGjV VXIIHU IURP  7KH K\SRWKHWLFDO TXHVWLRQ SRVHG WR D 9( IRU DELOLWLHVDQGKHUVWDWHRIEHLQJ7KLVZRXOGQRUPDOO\EHDQ SXUSRVHVRIGHWHUPLQLQJZKHWKHU+RZDUGFDQSHUIRUPRWKHU LQVLJQLILFDQW RYHUVLJKW  +RZHYHU WKH $/sjV VHOHFWLYH ZRUN RQ WKH RWKHU KDQG VKRXOG EH D PRUH FRPSOHWH LQFOXVLRQRIRQO\WKRVHSRUWLRQVRIWKHUHSRUWWKDWFDVW+RZDUG DVVHVVPHQW RI KHU SK\VLFDO DQG PHQWDO VWDWH DQG VKRXOG LQDFDSDEOHOLJKWVXJJHVWVWKDWKHRQO\FRQVLGHUHGSDUWRIWKH LQFOXGHDQmDFFXUDWH>@SRUWUD\>DO@>RIKHU@LQGLYLGXDOSK\VLFDO UHSRUWLQIRUPXODWLQJKLVFRQFOXVLRQWKDW+RZDUGmQHHG>V@WR DQGPHQWDOLPSDLUPHQW>V@l9DUOH\)GDW 0\HUV SHUIRUPZRUNRIDVLPSOHDQGUHODWLYHO\QRQVWUHVVIXOQDWXUHl Y :HLQEHUJHU  )G     WK &LU    SHU $V D UHVXOWZHFRQFOXGHWKDWWKH5)&GRHVQRWDFFXUDWHO\ FXULDP   7KXV ZKLOH WKH 5)& VKRXOG IRFXV RQ +RZDUGjV GHVFULEH +RZDUGjV DELOLWLHV DQG WKDW WKH $/sjV GHFLVLRQ DELOLWLHVRULQRWKHUZRUGVZKDW+RZDUGFDQDQGFDQQRWGR ZKLFK LV EDVHG XSRQ LW LV QRW VXSSRUWHG E\ VXEVWDQWLDO WKHK\SRWKHWLFDOTXHVWLRQVKRXOGIRFXVRQ+RZDUGjVRYHUDOO HYLGHQFH VWDWHLQFOXGLQJ+RZDUGjVPHQWDODQGSK\VLFDOPDODGLHV +RZDUGIXUWKHUDUJXHVWKDWWKH$/sIDLOHGWRFRQVLGHUKHU  JOREDODVVHVVPHQWIXQFWLRQLQJ *$) VFRUHDVUHSRUWHGLQIRXU GLIIHUHQWUHSRUWVIURP*HQHVHH&RXQW\&RPPXQLW\0HQWDO 7DNLQJ LQWR DFFRXQW WKH SXUSRVH RI WKH 5)& ZH ILUVW +HDOWK 6HUYLFHV  +RZDUG DUJXHV WKDW D *$) VFRUH LV mDQ DGGUHVV ZKHWKHU WKH $/sjV GHVFULSWLRQ RI +RZDUGjV 5)& RYHUDOOHYDOXDWLRQRI0V+RZDUGjVHPRWLRQDOPHQWDOKHDOWKl DFFXUDWHO\ UHIOHFWV +RZDUGjV DELOLWLHV  ,I LW GRHV WKHQ WKH :KLOHD*$)VFRUHPD\EHRIFRQVLGHUDEOHKHOSWRWKH$/sLQ $/sjV FRQFOXVLRQ LQDVPXFK DV LW UHOLHV XSRQ WKH 5)& LV IRUPXODWLQJWKH5)&LWLVQRWHVVHQWLDOWRWKH5)&jVDFFXUDF\ VXSSRUWHGE\VXEVWDQWLDOHYLGHQFH+RZDUGFRQWHQGVWKDWWKH 7KXV WKH $/sjV IDLOXUH WR UHIHUHQFH WKH *$) VFRUH LQ WKH 5)&LVQRWVXSSRUWHGE\VXEVWDQWLDOHYLGHQFHEHFDXVHLWGRHV 5)&VWDQGLQJDORQHGRHVQRWPDNHWKH5)&LQDFFXUDWH QRWDFFXUDWHO\UHFRXQWKHUSK\VLFDODQGHPRWLRQDOSUREOHPV 7KLVDUJXPHQWPLVVWDWHVWKHSXUSRVHRIWKH5)&:KLOHZH  DFNQRZOHGJH WKDW +RZDUGjV PDODGLHV VKRXOG LQIRUP DQ DVVHVVPHQWRIKHUDELOLWLHVWKLVGRHVQRWPHDQWKDWWKH5)& 7DNLQJ LQWR DFFRXQW WKH SXUSRVHV RI WKH K\SRWKHWLFDO PXVWHQXPHUDWHWKHP TXHVWLRQZHQH[WDGGUHVVZKHWKHUWKHK\SRWKHWLFDOTXHVWLRQ DFFXUDWHO\SRUWUD\V+RZDUGjVSK\VLFDODQGPHQWDOVWDWHRULQ 7KH $/s UHOLHG XSRQ IRXU H[KLELWV ZKHQ KH IRUPXODWHG RWKHUZRUGVZKHWKHUWKH9(jVWHVWLPRQ\LQUHVSRQVHWRWKH +RZDUGjV 5)&  ([KLELW  LV D 0DUFK    PHGLFDO K\SRWKHWLFDO TXHVWLRQ PD\ VHUYH DV VXEVWDQWLDO HYLGHQFH LQ UHSRUWIURPRQHRIKHUSK\VLFLDQV'U/HYLQ7KH5)&ZLWK VXSSRUWRIWKH$/sjVILQGLQJWKDW+RZDUGFRXOGSHUIRUPRWKHU RQH H[FHSWLRQ DFFXUDWHO\ UHIOHFWV 'U /HYLQjV FRQFOXVLRQV ZRUN  :H KDYH DOUHDG\ LQGLFDWHG WKDW WKH 5)& IDLOHG WR DERXW+RZDUGjVDELOLWLHV7KHRQHH[FHSWLRQLVWKDWWKH5)& GHVFULEH DFFXUDWHO\ +RZDUGjV DELOLWLHV LQ VHYHUDO UHVSHFWV VWDWHVWKDW+RZDUGLVDEOHWRVTXDWDQGFOLPEVWDLUVZKLOHWKH 6LQFHWKHK\SRWKHWLFDOTXHVWLRQLVQHDUO\LGHQWLFDOLWVXIIHUV UHSRUW XSRQ ZKLFK WKH $/s UHOLHG IRU WKLV SDUW RI WKH 5)& IURPWKHVDPHGHIHFWV%XWWKLVLVQRWDOO7KHK\SRWKHWLFDO VWDWHVWKDWLWLVKDUGHUIRU+RZDUGWRVTXDWDQGFOLPEZKHQKHU TXHVWLRQDOVRIDLOVWRGHVFULEHDFFXUDWHO\+RZDUGjVSK\VLFDO mORZ EDFN SDLQ LV VLJQLILFDQWl  :KLOH LW ZRXOG KDYH EHHQ PRUH DFFXUDWH WR LQFOXGH WKLV ILQGLQJ LQ WKH 5)& WKLV  +RZDUGY&RPPjURI6RFLDO6HFXULW\ 1R 1R +RZDUGY&RPPjURI6RFLDO6HFXULW\ 

RYHUVLJKWLILWFDQEHFDOOHGWKDWLVQRWVRVLJQLILFDQWDVWR LQWKHUHFRUGWKDWLVFRQWUDU\WR'U/HYLQjVUHSRUW0RUHRYHU MXVWLI\DILQGLQJWKDWWKLVSDUWRIWKH5)&LVQRWVXSSRUWHGE\ 'U/HYLQjVFRQFOXVLRQVDUHVXSSRUWHGE\DQRWKHUSK\VLFLDQ VXEVWDQWLDOHYLGHQFH 'U 6DUDSDUD  7KH\ DUH WKHUHIRUH HQWLWOHG WR FRPSOHWH GHIHUHQFH%HFDXVHWKH$/sGLGQRWLQFOXGHWKHPLQWKH5)& ([KLELWLVDPHGLFDOUHSRUWSUHSDUHGE\'U/HYLQDQG KLVGHFLVLRQLVQRWVXSSRUWHGE\VXEVWDQWLDOHYLGHQFH VXEPLWWHGWRWKH0LFKLJDQ'HSDUWPHQWRI6RFLDO6HUYLFHVRQ )HEUXDU\     7KH SRUWLRQ RI WKH 5)& WDNHQ IURP 1H[WH[KLELWLVDQ,QWDNH'LDJQRVWLF(YDOXDWLRQIURP ([KLELWGRHVQRWDFFXUDWHO\UHIOHFWHLWKHUWKHFRQWHQWVRI *HQHVHH&RXQW\&RPPXQLW\0HQWDO+HDOWK6HUYLFHVGDWHG WKH([KLELWRU+RZDUGjVDELOLWLHV,Q([KLELW'U/HYLQ 0DUFK 7KHSRUWLRQRIWKH5)&WDNHQIURPWKHLQWDNH RSLQHVWKDWEHFDXVHRIKHUK\SHUWHQVLRQDQGSDQLFDWWDFNV UHSRUWLQ([KLELWVWDWHVWKDW+RZDUGLVmDEOHWRWDNHFDUHRI +RZDUGVKRXOGQHYHUEHH[SRVHGWRWKHIROORZLQJZRUNLQJ EDVLF QHHGV  DSSHDUDQFH DQG SRVWXUH DSSURSULDWH  IDFLDO FRQGLWLRQV m>X@QSURWHFWHG>K@HLJKWV>P@RYLQJ>P@DFKLQHU\ H[SUHVVLRQVZLWKLQQRUPDOOLPLWV DPSOLWXGHDQGTXDOLW\RI >Q@RLVH DQG >Y@LEUDWLRQ >H@[WUHPH >W@HPSHUDWXUHV >G@XVW VSHHFKZLWKLQQRUPDOUDQJH SOHDVDQWFRRSHUDWLYHDQG >I>XPHV DQG >J@DVHVl  7KH $/s UHOLHV RQ WKLV ([KLELW WR EHKDYLRUZLWKLQQRUPDOOLPLWV DIIHFWZLWKLQQRUPDOUDQJH VXSSRUW KLV FRQFOXVLRQ WKDW +RZDUG KDV mQR YRFDWLRQDOO\ WKRXJKW SURFHVV ZLWKLQ QRUPDO UDQJH  QR VXLFLGDO LGHDWLRQ VLJQLILFDQWSUREOHPGXHWRKLJKEORRGSUHVVXUHlZKHQWKH QHHGWRSHUIRUPZRUNRIDVLPSOHDQGUHODWLYHO\QRQVWUHVVIXO ([KLELWVWDWHVH[DFWO\WKHRSSRVLWH QDWXUHl ,QKLVGHFLVLRQWKH$/sVWDWHVWKDWKHLVQRWERXQGE\'U 7KH$/sjVVXPPDU\LVWDNHQSULPDULO\IURPVHFWLRQ(RI /HYLQjV mJURVVO\ UHVWULFWLYHl FRQFOXVLRQV LQ WKLV ([KLELW WKHLQWDNHUHSRUWZKLFKLVHQWLWOHGm0HQWDO6WDWXVl7KHODVW EHFDXVHWKHUHDUHQRmFOLQLFDORUODERUDWRU\lILQGLQJVLQWKH SKUDVHLQWKH5)&ZKLFKVD\VWKDW+RZDUGKDVDmQHHGWR UHFRUGWRVXEVWDQWLDWHWKHP7KLVLVQRWWKHFDVH7KHPHGLFDO SHUIRUPZRUNRIDVLPSOHDQGUHODWLYHO\QRQVWUHVVIXOQDWXUHl UHSRUWLQ([KLELWDVNVWKHGRFWRUWRPDNHILQGLQJVmEDVHG DSSHDUVWREHWKHFRQFOXVLRQWKH$/sUHDFKHVEDVHGXSRQWKH RQ>KLV@FOLQLFDOHYDOXDWLRQDQGRURWKHUWHVWUHVXOWVl7KXVLW LQWDNHUHSRUW$UHYLHZRIWKHHQWLUHLQWDNHUHSRUWKRZHYHU ZRXOGDSSHDUWKDW'U/HYLQEHOLHYHGWKDWKLVRSLQLRQZDVVR UHYHDOVWKDWWKH$/sLQFOXGHGRQO\WKRVHSRUWLRQVRIWKHLQWDNH EDVHGDWOHDVWLQSDUW7KLVDVVXPSWLRQLVVXEVWDQWLDWHGE\'U UHSRUW ZKLFK FDVW +RZDUG LQ D FDSDEOH OLJKW DQG H[FOXGHG /HYLQjVWUHDWPHQWQRWHVLQ([KLELW7KHVHQRWHVGRFXPHQW WKRVHSRUWLRQVZKLFKVKRZHG+RZDUGLQDOHVVWKDQFDSDEOH 'U/HYLQjVILQGLQJVIURPHLJKWHHQYLVLWVE\+RZDUGEHWZHHQ OLJKW)RUH[DPSOHWKHLQWDNHUHSRUWLQ([KLELWDOVRVWDWHV 0DUFK DQGsXO\ DQGWKH\LQFOXGHODERUDWRU\WHVW WKDW +RZDUG LV H[SHULHQFLQJ mIHDU DQ[LHW\ DSSUHKHQVLRQ UHVXOWVDQGQXPHURXVSUHVFULSWLRQDXWKRUL]DWLRQV GHSUHVVLRQ DQG VDGQHVVl  WKDW +RZDUG H[SHULHQFHV mKDOOXFLQDWLRQVl WKDW+RZDUGKDVDQmLPSDLUHGDWWHQWLRQVSDQ 3URYLGHG WKDW WKH\ DUH EDVHG RQ VXIILFLHQW PHGLFDO GDWD >DQG DQ@ LPSDLUHG FRQFHQWUDWLRQ DELOLW\l  WKDW +RZDUG KDV m>W@KHPHGLFDORSLQLRQVDQGGLDJQRVHVRIWUHDWLQJSK\VLFLDQV LPSDLUHG UHFHQW DQG UHPRWH PHPRU\  WKDW +RZDUG VXIIHUV DUH JHQHUDOO\ DFFRUGHG VXEVWDQWLDO GHIHUHQFH DQG LI WKH IURPREVHVVLRQVDQHDWLQJFRPSXOVLRQDQGDIHDURIKHLJKWV RSLQLRQVDUHXQFRQWUDGLFWHGFRPSOHWHGHIHUHQFHl+DUULVY DQGFORVHGVSDFHV)XUWKHUWKHLQWDNHUHSRUWFRQFOXGHVE\ +HFNOHU  )G   WK &LU     'U /HYLQjV GLDJQRVLQJ+RZDUGZLWKmPDMRUGHSUHVVLYHGLVRUGHU>@VLQJOH ILQGLQJDERXWWKHHIIHFW+RZDUGjVK\SHUWHQVLRQKDGRQKHU HSLVRGH>@ VHYHUH >ZLWKRXW@ SV\FKRWLF HIIHFWV >DQG@ SDQLF DELOLW\ WR ZRUN LV D PHGLFDO RSLQLRQ WKDW LV EDVHG XSRQ GLVRUGHU>ZLWKRXW@DJRUDSKRELDl$OOWKLVLVDEVHQWIURPWKH QXPHURXVFOLQLFDOYLVLWVZLWKWKHSDWLHQW:HDUHXQDZDUHRI 5)& DQGWKH&RPPLVVLRQHUKDVIDLOHGWRLGHQWLI\DPHGLFDOUHSRUW

Reference

Status
Published