In Re: Untd Steel v.
In Re: Untd Steel v.
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
$50&2 ,1& ; 3ODLQWLII$SSHOOHH 1RV Y ! 81,7(' 67((/:25.(56 2) $0(5,&$ $)/&,2 /2&$/ 81,7(' 67((/:25.(56 2) $0(5,&$ $)/&,2 %,//< ' &2//,16 '$1 0$57,1 DQG 0$5. ( 52%(57621 'HIHQGDQWV$SSHOODQWV Y &,7< 2) 0$16),(/' /<',$ 5(,'DQG s2+1 )8//(5 'HIHQGDQWV$SSHOOHHV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R nsRKQ00DQRV'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG )HEUXDU\
$UPFR,QFY8QLWHG 1RV 6WHHOZRUNHUVHWDO
%HIRUH '$8*+75(<DQG*,/0$1&LUFXLWsXGJHV &2+16HQLRU'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 3KLOLS +RVWDN %5('+2)) .$,6(5 :DVKLQJWRQ'&IRU$SSHOODQWV*HRUJH(<XQG)5267 %52:172''//&&LQFLQQDWL2KLR0DXUD/+XJKHV &$/)((+$/7(5 *5,6:2/'//3&OHYHODQG2KLR IRU $SSHOOHHV 21 %5,() 0DUN $ 5RFN 7LPRWK\ s *DOODJKHU 6&+:$5=:$/' 52&. 0&1$,5 &OHYHODQG2KLR5REHUW:HLQEHUJ%5('+2)) .$,6(5 :DVKLQJWRQ'&IRU$SSHOODQWV*HRUJH(<XQG'DYLG& +RUQ )5267 %52:1 72'' //& &LQFLQQDWL 2KLR 5LFKDUG3*RGGDUG:HQG\(6WDUN&$/)((+$/7(5 *5,6:2/' //3 &OHYHODQG 2KLR 5REHUW / .RQVWDP &,7<2)0$16),(/'/$:',5(&7250DQVILHOG2KLR IRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB ,,1752'8&7,21 &2+1 6HQLRU 'LVWULFW sXGJH 7KLV FDVH DULVHV RXW RI D ODERUGLVSXWHDWWKH0DQVILHOG2KLRIDFLOLW\RI$UPFR,QF DVWHHOPDQXIDFWXUHU,QsXO\ $UPFRILOHGDQDFWLRQLQ VWDWHFRXUWFODLPLQJWKDWWKHGHIHQGDQWVDSSHOODQWV8QLWHG
7KH +RQRUDEOH $YHUQ &RKQ 6HQLRU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 0LFKLJDQ VLWWLQJ E\ GHVLJQDWLRQ
$UPFR ,QF Y 8QLWHG 6WHHOZRUNHUV RI $PHULFD $)/&,2&/& HW
DO 1R + &RPPRQ 3OHDV &W RI 5LFKODQG &RXQW\ 2KLR sXO\ 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO
6WHHOZRUNHUV RI $PHULFD $)/&,2 /RFDO 8QLWHG 6WHHOZRUNHUV RI $PHULFD $)/&,2 %LOO\ ' &ROOLQV 'DQ 0DUWLQ DQG0DUN(5REHUWVRQ FROOHFWLYHO\mWKH8QLRQVl EUHDFKHG WKH WHUPV RI D FROOHFWLYH EDUJDLQLQJ DJUHHPHQW &%$ LQYLRODWLRQRIWKH/DERU0DQDJHPHQW5HODWLRQV$FW /05$ 86&7KH8QLRQVUHPRYHGWKHFDVHWR IHGHUDOFRXUW $UPFRODWHUDPHQGHGLWVFRPSODLQWWRDGGFODLPVXQGHU 86& FODLPLQJ WKDW WKH 8QLRQV DQG WKH &LW\ RI 0DQVILHOG0D\RU/\GLD5HLGDQG0DQVILHOGSROLFHRIILFHU sRKQ)XOOHU FROOHFWLYHO\mWKH&LW\l FRQVSLUHGWRVKXWGRZQ $UPFRjV 0DQVILHOG IDFLOLW\ LQ YLRODWLRQ RI $UPFRjV FRQVWLWXWLRQDO ULJKWV $UPFR DQG WKH &LW\ UHDFKHG D VHWWOHPHQW RI WKHLU GLVSXWH DQG DVNHG WKH GLVWULFW FRXUW WR DSSURYHZKDWWKH\ODEHOHGDmFRQVHQWGHFUHHl2YHUREMHFWLRQ RIWKH8QLRQVDQGZLWKRXWFRQGXFWLQJDQHYLGHQWLDU\KHDULQJ WKHGLVWULFWFRXUWVLJQHGWKHFRQVHQWGHFUHHDQGDWWKHVDPH WLPH VLJQHG D FHUWLILFDWH RI DSSHDODELOLW\ DV ZHOO DV D 0HPRUDQGXP RI 2SLQLRQ IRU WKH SXUSRVH RI mVWDWLQJ LWV UHDVRQVIRUVLJQLQJWKH&RQVHQW'HFUHHl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jV )LUVW $PHQGPHQW ULJKWV DQG WKH GLVWULFW FRXUW ODFNHG DXWKRULW\ WR GLUHFW WKH 8QLWHG 6WDWHV 0DUVKDOV WR HQIRUFHWKHFRQVHQWGHFUHH$UPFRDUJXHVWKDWWKH&RXUWRI
$UPFR ,QF Y 8QLWHG 6WHHOZRUNHUV RI $PHULFD HW DO 1R + &RPPRQ 3OHDV &W RI 5LFKODQG &RXQW 2KLR 6HSW $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
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jV0HPRUDQGXPRI2SLQLRQVXPPDUL]HV LQWKLVRSLQLRQ2QUHPDQGWKHGLVWULFWFRXUWVKRXOGGHFLGH WKHIDFWXDODQGSURFHGXUDOEDFNJURXQGRIWKLVFDVHDVIROORZV ZKHWKHULWVKRXOGJRIRUZDUGZLWKWKHGDPDJHVSURQJRIWKH FODLP $)DFWXDO%DFNJURXQG 3ODLQWLII$UPFR,QFPDQXIDFWXUHVVSHFLDOW\DQGVWDLQOHVV VWHHO DW D SODQW LQ 0DQVILHOG 2KLR 7KH 3ODLQWLII HPSOR\HG DSSUR[LPDWHO\ KRXUO\ DQG VDODULHG HPSOR\HHVDWWKH0DQVILHOGSODQW7KHKRXUO\HPSOR\HHV DUHUHSUHVHQWHGE\DXQLRQDORFDOEUDQFK /RFDO RI WKH 8QLWHG 6WHHOZRUNHUV RI $PHULFD FROOHFWLYHO\ WKH m8QLRQl %RWKWKH,QWHUQDWLRQDO8QLRQDQG/RFDO DUH'HIHQGDQWV 7KH SODQWRSHUDWHGSXUVXDQWWRDFROOHFWLYHEDUJDLQLQJ DJUHHPHQW m&%$l EHWZHHQWKH8QLRQDQGWKH3ODLQWLII 7KH&%$H[SLUHGDW DPRQ6HSWHPEHU %RWK $UPFR DQG WKH 8QLRQV KDYH ILOHG PRWLRQV WR VWULNH SDSHUV ILOHG ,PPHGLDWHO\XSRQH[SLUDWLRQWKH3ODLQWLIIORFNHGRXWWKH E\ WKH RSSRVLWH SDUW\ DOLXQGH WKH UHFRUG 7KH PRWLRQV DUH '(1,(' :H 8QLRQHPSOR\HHV7KH3ODLQWLIIDOOHJHVWKDWHYHQEHIRUH DUH VDWLVILHG WKDW RXU GHFLVLRQ LV FRQVLVWHQW ZLWK WKH UHFRUG RQ DSSHDO IURP
WKHH[SLUDWLRQRIWKH&%$8QLRQPHPEHUVFRPPLWWHG WKH GLVWULFW FRXUW :H DUH DOVR VDWLVILHG WKDW RQ UHPDQG WKH GLVWULFW FRXUW
DFWV RI VDERWDJH UHVXOWLQJ LQ ORVW SURGXFWLRQ WLPH ,Q ZLOO FRQILQH LWVHOI WR WKH UHFRUG PDGH E\ WKH SDUWLHV LQ WKH FDVH DQG ZLOO
DGGLWLRQ8QLRQPHPEHUVUHIXVHGWRZRUNRYHUWLPHDOVR UHFRJQL]H WKDW WKH GLIILFXOWLHV UHVROYHG E\ WKLV DSSHDO FDPH DERXW E\ LWV IDLOXUH WR DSSUHFLDWH WKH IRXU SDUW\ GLVSXWH UHIOHFWHG LQ WKH FDVH $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
86Y5RELQ)G G&LU 6HHDOVR UHVXOWLQJ LQ ORVW SURGXFWLRQ WLPH DV ZHOO DV SODQW %HUFKHQ\ Y sRKQVRQ )G WK &LU VKXWGRZQVRQDWOHDVWWKUHHRFFDVLRQVLQsXQHDQGsXO\ DSSO\LQJWKHVWDQGDUGVDUWLFXODWHGLQ5RELQ 7KH 8QLRQ 'HIHQGDQWV GHQ\ WKH\ YLRODWHG WKH &%$ 7KH 8QLRQV FODLP WKDW WKH GLVWULFW FRXUW MXGJH ZLOO EH XQDEOH WR YLHZ WKH FDVH REMHFWLYHO\ XSRQ UHPDQG DV ,QDQWLFLSDWLRQRISRWHQWLDOYLROHQFHWKH3ODLQWLIIKLUHG HYLGHQFHG E\ WKH PDJQLWXGH RI HUURUV DQG WKH OHYHO RI KLV VHFXULW\ JXDUGV EHIRUH WKH &%$ H[SLUHG 7KH 8QLRQ mSHUVRQDOLQYHVWPHQWlLQWKHFDVH:LWKUHVSHFWWRmSHUVRQDO DOOHJHVWKDWEHIRUHWKHORFNRXWVHFXULW\JXDUGVKDUDVVHG LQYHVWPHQWlWKH8QLRQVFLWHGRFNHWHQWULHVVXJJHVWLQJWKDWWKH 8QLRQ HPSOR\HHV DQG VH[XDOO\ KDUDVVHG VRPH IHPDOH GLVWULFWMXGJHKDGH[SDUWHFRQWDFWZLWK$UPFRDQGWKH&LW\ HPSOR\HHV,WFRQWHQGVWKDWWKHSUHVHQFHRIWKHVHFXULW\ 7KH 8QLRQV DOVR RIIHU D QHZVSDSHU DUWLFOH WKDW TXRWHV WKH JXDUGV FUHDWHG DQ XQVDIH DQG XQKHDOWK\ ZRUN 0D\RURI0DQVILHOGDVVD\LQJWKDWWKHGLVWULFWMXGJHJDYHWKH HQYLURQPHQW LQ YLRODWLRQ RI WKH &%$ 7KH 3ODLQWLII FLW\ mQR FKRLFH EXW WR HQWHU LQWR WKH DJUHHPHQWl DQG WKDW GHQLHVWKHDOOHJDWLRQV mZKHQHYHUWKHFLW\UHIXVHGWRFRQFHGHVRPHSRLQWoOLNHKDYLQJ SROLFH VHDUFK DQG UHPRYH VKDQWLHV QHDU WKH JDWHV o >WKH 6LQFHWKHORFNRXWEHJDQWKH3ODLQWLIIKDVFRQWLQXHGWR GLVWULFW MXGJH@ FRXQWHUHG E\ VD\LQJ KH ZRXOG KDYH WKH PDLQWDLQWKHVHFXULW\IRUFHWRSURWHFWWKHSODQWVDODULHG 0DUVKDOVGRLWLWZDVDOO>WKHGLVWULFWMXGJH@<RXWKLQN HPSOR\HHVDQGUHSODFHPHQWZRUNHUV+RZHYHUWKHUH ZHDVNHGWKHPDUVKDOVWRFRPHWRRXUWRZQ",GRQjWWKLQNVRl KDYHEHHQLQVWDQFHVRIYLROHQFH 6HH&RXQW\6HFXULW\ 7KH8QLRQVDOVRDUJXHWKDWWKHGLVWULFWMXGJHFRQGXFWHGRII $JHQF\ Y &LW\ RI 0DQVILOHG &DVH 1R &9 WKHUHFRUG H[ SDUWH PHHWLQJV DQG WKDW WKH FDVH VKRXOG EH &RXUWjV0HPRUDQGXPRI2SLQLRQGDWH>VLF@sDQXDU\ UHDVVLJQHGWRDGLIIHUHQWMXGJHWRPDLQWDLQWKHDSSHDUDQFHRI MXVWLFH)LQDOO\WKH8QLRQVDUJXHWKDWUHDVVLJQPHQWZRXOG QRWHQWDLOZDVWHRUGXSOLFDWLRQRXWRISURSRUWLRQZLWKZKDW 2Q6HSWHPEHU WKH3ODLQWLIIILOHG>DODZVXLWLQ ZRXOG EH JDLQHG E\ SUHVHUYLQJ WKH DSSHDUDQFH RI IDLUQHVV VWDWH FRXUW VHHNLQJ LQMXQFWLYH UHOLHI DJDLQVW WKH 8QLRQ EHFDXVHQRHYLGHQFHZDVWDNHQQRILQGLQJVRIIDFWZHUHPDGH 'HIHQGDQWV@,WVRXJKWWROLPLWWKHSLFNHWVDQGWRHQMRLQ E\WKHGLVWULFWMXGJHDQGQRWULDOGDWHKDGEHHQVHW YLROHQFHsXGJHsDPHV'+HQVRQLVVXHG>DWHPSRUDU\ UHVWUDLQLQJRUGHU@WKHVDPHGD\ ,QRXUYLHZWKLVVLQJOHQHZVSDSHUDUWLFOHDQGRQHSDUW\jV DOOHJDWLRQ WKDW D MXGJH FRQGXFWHG RIIWKHUHFRUG H[ SDUWH 7KH3ODLQWLIIDOOHJHVKRZHYHUWKDW/DERU'D\ZHHNHQG PHHWLQJVDUHQRWVXIILFLHQWWRMXVWLI\WKHH[WUDRUGLQDU\UHOLHI >RQ 6HSWHPEHU DQG @ 8QLRQ DQG 0DQVILHOG UHTXHVWHG:HWKHUHIRUHGHFOLQHWRUHPDQGWKLVFDVHWRD RIILFLDOVLQFOXGLQJ0D\RU5HLGPHWZLWKsXGJH+HQVRQ GLIIHUHQWGLVWULFWFRXUWMXGJHXQGHU86& DERXW WKH ODERU GLVSXWH ZLWKRXW WKH SUHVHQFH RI DQ\ UHSUHVHQWDWLYHV RI WKH 3ODLQWLII 7KH 3ODLQWLII DOOHJHV ,9&21&/86,21 IXUWKHUWKDWWKH'HIHQGDQWVDVVHUWHGLPSURSHULQIOXHQFH RYHUsXGJH+HQVRQDWWKDWPHHWLQJ7KH'HIHQGDQWVKDYH %HFDXVHWKHFRQVHQWGHFUHHRSHUDWHVDVDQLQMXQFWLRQDQG DGPLWWHGWRWKHPHHWLQJEXWGHQ\DQ\LPSURSULHW\ EHFDXVHWKH8QLRQVZLOOEHVHULRXVO\KDUPHGLIWKH\FDQQRW FKDOOHQJHWKHFRQVHQWGHFUHHDWWKLVWLPHZHKDYHMXULVGLFWLRQ 2Q/DERU'D\6HSWHPEHU XSRQPRWLRQRIWKH 8QLRQ sXGJH +HQVRQ LVVXHG D 752 HQMRLQLQJ WKH 3ODLQWLIIIURPXVLQJUHSODFHPHQWZRUNHUV>DQGJUDQWLQJ $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
WKH SUHVLGHQW RI /RFDO RU KLV GHVLJQHH DQG WKH 8QLRQVjUHPDLQLQJFKDOOHQJHVWRWKHYDOLGLW\RIWKHFRQVHQW 0DQVILHOGSROLFHWKHULJKWWRLQVSHFWYHKLFOHVHQWHULQJRU GHFUHH OHDYLQJWKH$UPFRIDFLOLW\WRYHULI\FRPSOLDQFHZLWKWKH 752@7KH3ODLQWLIIREMHFWHGRQWKHQH[WGD\DVVHUWLQJ (0DQGDPXV3HWLWLRQDQG2WKHU5HOLHI LWV DEVROXWH ULJKW WR XVH UHSODFHPHQW ZRUNHUV XQGHU IHGHUDO ODZ ,W FODLPHG LW QHHGHG UHSODFHPHQWV WR 7KH8QLRQVKDYHDOVRILOHGDSHWLWLRQIRUZULWRIPDQGDPXV FRQWLQXHRSHUDWLQJLWVSODQWsXGJH+HQVRQUHMHFWHGWKH GLUHFWLQJWKHGLVWULFWFRXUWWRYDFDWHWKHDSSURYDODQGHQWU\RI 3ODLQWLIIjVREMHFWLRQV>EXWDPHQGHGWKH752WRSHUPLW WKH FRQVHQW GHFUHH 6HH $OO :ULWV $FW 86& YHKLFOHVHDUFKHVRQO\E\WKH0DQVILHOGSROLFHDQGQRWE\ $UPFRWKH&LW\DQGWKHGLVWULFWFRXUWKDYHHDFKUHVSRQGHG 8QLRQPHPEHUV@%HFDXVHRIWKH752WKH3ODLQWLIIjV SODQWZDVVKXWGRZQ>VLF@IURP6HSWHPEHU 2Q m0DQGDPXVLVDQH[WUDRUGLQDU\UHPHG\DQGLWZLOORQO\EH 6HSWHPEHU WKH3ODLQWLIIVXEPLWWHGDQDGGLWLRQDO JUDQWHGZKHQWKHSHWLWLRQHUVKRZVWKDWLWVULJKWWRLVVXDQFHRI EULHI DQG sXGJH +HQVRQ UHVFLQGHG WKH 752 EDUULQJ WKH ZULW LV µFOHDU DQG LQGLVSXWDEOHj µ>2@QO\ H[FHSWLRQDO UHSODFHPHQW ZRUNHUV 7KH RULJLQDO 752 SURKLELWLQJ FLUFXPVWDQFHVDPRXQWLQJWRDMXGLFLDOXVXUSDWLRQRISRZHU YLROHQFHDQGOLPLWLQJWKHSLFNHWVUHPDLQHGLQIRUFH ZLOOMXVWLI\WKHLQYRFDWLRQRIWKLVH[WUDRUGLQDU\UHPHG\jl,Q UH%HQGHFWLQ3URGXFWV/LDELOLW\/LWLJDWLRQ )G 2Q6HSWHPEHU WKH3ODLQWLIIDWWHPSWHGWREULQJ WK&LU FLWDWLRQVDQGIRRWQRWHVRPLWWHG :HILQG UHSODFHPHQW ZRUNHUV LQWR WKH SODQW LQ D FRQYR\ RI WKDWWKHUHLVQREDVLVRQZKLFKWRJUDQWWKHZULW YHKLFOHV$WWKHSODQWHQWUDQFHWKHFRQYR\ZDVDWWDFNHG E\DQDQJU\PREZKLFKWKUHZREMHFWVVPDVKHGZLQGRZV 7KH8QLRQVDOVRDVNXVWRH[HUFLVHRXUDXWKRULW\XQGHU RI WKH YHKLFOHV DQG EHDW UHSODFHPHQW ZRUNHUV DQG 86&WRUHPDQGWKHFDVHWRDGLIIHUHQWGLVWULFWFRXUW VHFXULW\JXDUGVVHYHUHO\LQMXULQJVRPH'HIHQGDQWsRKQ MXGJHm+RZHYHUWKLVLVDQH[WUDRUGLQDU\SRZHUDQGVKRXOG )XOOHUD0DQVILHOGSROLFHRIILFHUZDVDWWKHHQWUDQFHWR UDUHO\EHLQYRNHG6XFKUHDVVLJQPHQWVVKRXOGEHPDGH WKHSODQW7KH3ODLQWLIIDOOHJHVWKDW2IILFHU)XOOHUZLWK LQIUHTXHQWO\ DQG ZLWK WKH JUHDWHVW UHOXFWDQFHl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
WKHGLVWULFWFRXUWFRQWLQXLQJMXULVGLFWLRQWRmPDNHDQGHQIRUFH %3URFHGXUDO+LVWRU\ VXFK RWKHU RUGHUV UHVSHFWLQJ FRQGXFW E\ SULYDWH SHUVRQV UHODWHGWRWKHODERUGLVSXWHDVWKH&RXUWGHHPVDSSURSULDWHWR >,QsXO\@ EHIRUHWKH&%$H[SLUHGWKH3ODLQWLIIILOHG HQVXUHWKHPDLQWHQDQFHRISXEOLFRUGHUl6LPLODUO\WKHVWDWH LWVRULJLQDO&RPSODLQWDJDLQVWWKH,QWHUQDWLRQDO8QLRQ FRXUW UHWDLQV MXULVGLFWLRQ XQGHU LWV LQMXQFWLRQ WR PDLQWDLQ /RFDO DQG VHYHUDO 8QLRQ RIILFLDOV WKH m8QLRQ SXEOLFRUGHURYHUWKHODERUGLVSXWH$VWKH8QLRQVSRLQWRXW 'HIHQGDQWVl >2Qs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mWKHVWDWHSURFHHGLQJVGRQRWDIIRUG DQG2IILFHU)XOOHU WKHm0DQVILHOG'HIHQGDQWVl &RXQW WKH3ODLQWLIIDQDGHTXDWHRSSRUWXQLW\WRUDLVHLWV FODLP ,UHODWHVRQO\WRWKH8QLRQ'HIHQGDQWVDQGHVVHQWLDOO\UH DJDLQVWWKH&LW\'HIHQGDQWV lDQGWKHUHIRUHWKHWKLUGSURQJ DVVHUWV WKH DOOHJDWLRQV RI WKH RULJLQDO &RPSODLQW 7KH RI WKH <RXQJHU WHVW LV QRW VDWLVILHG 1HLWKHU WKH &LW\ QRU 3ODLQWLII DGGLWLRQDOO\ DOOHJHV WKDW 8QLRQ PHPEHUV $UPFR RIIHU DQ\ VXSSRUW IRU WKLV DUJXPHQW 7KH IHGHUDO FRPPLWWHGDFWVRIVDERWDJHUHVXOWLQJLQORVWSURGXFWLRQ SODLQWLIIKDVWKHEXUGHQWRVKRZWKDWmWKDWVWDWHSURFHGXUDOODZ 7KH 8QLRQ 'HIHQGDQWV KDYH UHDVVHUWHG WKHLU EDUUHGSUHVHQWDWLRQRI>LWV@FODLPVl)HGHUDO([SUHVV&RUSY FRXQWHUFODLPEDVHGRQWKHSUHVHQFHRIWKHVHFXULW\IRUFH 7HQQHVVHH3XEOLF6HUY&RPPjQ )G WK&LU FLWLQJ3HQQ]RLO &R Y 7H[DFR ,QF 86 &RXQWV ,,,9 ZKLFK DUH WKH VXEMHFW RI WKH &RQVHQW $UPFRKDVQRWPHWWKLVEXUGHQ 'HFUHH DUH EDVHG RQ HYHQWV RFFXUULQJ DIWHU WKH &%$ H[SLUHG6SHFLILFDOO\&RXQWV,,,9DULVHXQGHU86& $EVWHQWLRQ E\ WKH GLVWULFW FRXUW ZRXOG KDYH mDYRLGHG DQG HVVHQWLDOO\ DOOHJH WKDW WKH 0DQVILHOG GXSOLFDWLRQRIOHJDOSURFHHGLQJV>DQGVDQFWLRQV@GHIHUUHGWR 'HIHQGDQWV DQG WKH 8QLRQ 'HIHQGDQWV FRQVSLUHG WR WKH VWDWHjV VRYHUHLJQW\ RYHU LWV ODZ DQG UHVSHFWHG WKH VKXWGRZQ>VLF@WKHSODQWWKHUHE\DEULGJLQJWKH3ODLQWLIIjV SULQFLSOHVRIFRPLW\LQKHUHQWWRRXUIHGHUDOLVPl&DUUROO FRQVWLWXWLRQDOULJKWVXQGHUFRORURIVWDWHODZ&RXQW9 )GDW$FFRUGLQJO\WKHGLVWULFWFRXUWjVHQWU\RIWKH DOOHJHVDVLPLODUFRQVSLUDF\WRWRUWLRXVO\LQWHUIHUHZLWK FRQVHQWGHFUHHYLRODWHGWKH<RXQJHUDEVWHQWLRQGRFWULQH6HH WKHFRQWUDFWXDOULJKWVRIWKH3ODLQWLIIDQGLWVFXVWRPHUV &DUUROO )GDW 7KHIDFWXDOEDVLVIRUWKHVHFRXQWVLVWZRIROG)LUVWWKH 3ODLQWLIIDOOHJHVWKDWWKH'HIHQGDQWVFRQVSLUHGWRDVVHUW %HFDXVH ZH KDYH IRXQG WKDW WKH GLVWULFW FRXUW ODFNHG LPSURSHULQIOXHQFHRYHUsXGJH+HQVRQFDXVLQJWKHSODQW MXULVGLFWLRQ WR LVVXH WKH FRQVHQW GHFUHH XQGHU WKH 1RUULV WRVKXWGRZQIRUWKUHHGD\VUHVXOWLQJLQVLJQLILFDQWORVW /D*XDUGLD$FWDQGHQWHUHGWKHFRQVHQWGHFUHHLQYLRODWLRQRI SURGXFWLRQ WLPH 6HFRQG WKH 3ODLQWLII DOOHJHV WKDW RQ WKH <RXQJHU DEVWHQWLRQ GRFWULQH ZH QHHG QRW DGGUHVV WKH $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
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jV FRQVWLWXWLRQDO VWDWH FRXUW SURFHHGLQJ LW DGGUHVVHV VXEVWDQWLDOO\ WKH VDPH SURSHUW\ULJKWWRRSHUDWHLWVSODQW7KH&LW\FRQWLQXHGWR LVVXHVWKDWDUHDGGUHVVHGLQWKHVWDWHFRXUWLQMXQFWLRQ)XUWKHU DVVHUWWKHUHZDVQRFRQVSLUDF\RULQWHQWWRGHSULYHWKH FRQWUDU\WR$UPFRDQGWKH&LW\jVDUJXPHQWWKDWWKH 3ODLQWLIIRILWVFRQVWLWXWLRQDOULJKWVEXWUHSUHVHQWHGWKDW FODLPLQWKHIHGHUDOODZVXLWLVLQGHSHQGHQWRIWKHVWDWHDFWLRQ LWVLPSO\GLGQRWKDYHVXIILFLHQWUHVRXUFHVWRPDLQWDLQ WKHUHOLHIUHTXHVWHGE\$UPFRLVGLUHFWO\FRYHUHGE\WKHVWDWH RUGHU$VSDUWRIWKHDJUHHPHQWWKHUHIRUHWKHSDUWLHV FRXUWLQMXQFWLRQ$UPFRjVIHGHUDOFRPSODLQWVWDWHV m8QOHVV UHTXHVWHGWKDWWKH>GLVWULFWFRXUW@LVVXHD&RQVHQW'HFUHH LPPHGLDWHO\ DQG SHUPDQHQWO\ HQMRLQHG 'HIHQGDQWV ZLOO WRGHILQHWKH&LW\jVREOLJDWLRQVWRSUHYHQWYLROHQFHDQG FRQWLQXHWRHQJDJHLQVXFKLQWHQWLRQDOSXUSRVHIXOUHFNOHVV SURYLGH WKDW WKH 86 0DUVKDOV ZRXOG PRQLWRU PDOLFLRXVDQGZDQWRQFRQGXFWLQFDOORXVGLVUHJDUGRIRUZLWK FRPSOLDQFHZLWKWKH'HFUHHDQGZKHQDQGLIQHFHVVDU\ GHOLEHUDWHLQGLIIHUHQFHWR$UPFRjVULJKWVl7KHVWDWHFRXUW VXSSOHPHQW WKH &LW\jV UHVRXUFHV WR PDLQWDLQ ODZ DQG LQMXQFWLRQHQMRLQVWKH8QLRQVIURPFRPPLWWLQJYLROHQWDFWV RUGHU OLPLWV WKH SLFNHWLQJ DQG UHTXLUHV WKH 0DQVILHOG SROLFH WR HQIRUFH WKH SLFNHWLQJ UHVWULFWLRQV SURWHFW SHUVRQV DQG 2Q 0DUFK WKH 3ODLQWLII DQG WKH 0DQVILHOG SURSHUW\ DQG JHQHUDOO\ NHHS WKH SHDFH 7KH VWDWH FRXUW 'HIHQGDQWV SURSRVHG D &RQVHQW 'HFUHH GHVLJQHG WR LQMXQFWLRQDOVRSURKLELWVWKUHDWVDQGYLROHQFHDQGHVWDEOLVKHV HQVXUH DFFHVV WR DQG IURP WKH 3ODLQWLIIjV 0DQVILHOG DIRRWQRZDON]RQHLQIURQWRIWKHHQWUDQFHVWR$UPFRjV IDFLOLWLHVDQGWRSUHYHQWYLROHQFH7KH>GLVWULFWFRXUW@ 0DQVILHOGSODQW)XUWKHUWKHVWDWHFRXUWLQMXQFWLRQPDQGDWHV UHYLHZHGWKHSURSRVDODQGVXJJHVWHGFHUWDLQFKDQJHVWR WKDWWKH8QLRQVPD\QRWREVWUXFWWKHURDGZD\ZLWKVKDFNV WKH ODQJXDJH 2Q 0DUFK WKH SDUWLHV VXEPLWWHG D SURSRVHG&RQVHQW'HFUHHLQFRUSRUDWLQJWKRVHFKDQJHV )LQDOO\WKHFRQVHQWGHFUHHDQGWKHVWDWHFRXUWLQMXQFWLRQ 7KH>GLVWULFWFRXUW@DOVRLQVWUXFWHGWKHSDUWLHVWRVHUYHD ERWKSXUSRUWWRJLYHWKHLVVXLQJFRXUWVRQJRLQJMXULVGLFWLRQ FRS\RIWKH&RQVHQW'HFUHHRQWKH8QLRQ'HIHQGDQWV RYHUWKHODERUGLVSXWH7KHFRQVHQWGHFUHHVSHFLILFDOO\JLYHV $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
7KHLQMXQFWLRQLQ5HXWHUZDVFRQVLVWHQWZLWKWKHSXUSRVHRI $IWHUUHFHLYLQJDFRS\WKH8QLRQ'HIHQGDQWVUHTXHVWHG WKH $FW WR SURWHFW ZRUNHUV LQ H[HUFLVLQJ WKHLU RUJDQL]LQJ DQRSSRUWXQLW\WRVXEPLWREMHFWLRQVZKLFKWKH\GLGRQ SRZHUV,QFRQWUDVWWKHFRQVHQWGHFUHHLVGLUHFWO\LQFRQIOLFW 0DUFK :LWK WKHLU REMHFWLRQV WKH\ UHTXHVWHG DQ ZLWK$FWjVSXUSRVHEHFDXVHLWUHVWULFWVWKH8QLRQVjPHPEHUV HYLGHQWLDU\KHDULQJZKLFKWKH>GLVWULFWFRXUW@GHQLHG FRQGXFWLQFRQQHFWLRQZLWKWKHODERUGLVSXWHDWWKH$UPFR 0DQVILHOGSODQW 2Q0DUFKWKH3ODLQWLIIUHVSRQGHGWRWKH8QLRQ 'HIHQGDQWVjREMHFWLRQVWRZKLFKWKH8QLRQ'HIHQGDQWV %HFDXVH WKH UHVWULFWLRQV RI WKH FRQVHQW GHFUHH VWURQJO\ UHSOLHG RQ 0DUFK 2Q 0D\ WKH >GLVWULFW LPSDFWWKH8QLRQVj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mVWDWHSURFHHGLQJ LVFXUUHQWO\SHQGLQJ LQYROYHVDQLPSRUWDQWVWDWHLQWHUHVWDQG DIIRUGVWKH 7KHWHUPRIWKLV'HFUHHVKDOOEHWKHGXUDWLRQRIWKH SODLQWLII DQ DGHTXDWH RSSRUWXQLW\ WR UDLVH FRQVWLWXWLRQDO DERYHUHIHUHQFHODERUGLVSXWH mWKHODERUGLVSXWHl FODLPVl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j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
HQWUDQFHVWR>$UPFRjV@0DQVILHOGIDFLOLWLHV1RRQH 7KHGLVWULFWFRXUWUHO\LQJRQ5HXWHUY6NLSSHU)G PD\ ZDON LQ VXFK QRZDON ]RQHV ZKLOH DQ\ SHUVRQ RU WK&LU IRXQGWKDWHYHQLIWKHFDVHLQYROYHGDODERU YHKLFOH LV DWWHPSWLQJ WR HQWHU RU OHDYH >$UPFRjV@ GLVSXWHWKH$FWGLGQRWDSSO\WRWKH FODLPUHVROYHGE\ IDFLOLWLHV 1R SHUVRQ RWKHU WKDQ D ODZ HQIRUFHPHQW WKHFRQVHQWGHFUHH,Q5HXWHUDFRXQW\HPSOR\HHFODLPHG RIILFHUPD\SODFHDQ\REMHFWLQDQRZDON]RQHDWDQ\ WKDW KHU FRQVWLWXWLRQDO ULJKWV ZHUH YLRODWHG ZKHQ VKH ZDV WLPH 1R SHUVRQ VKDOO LQ DQ\ RWKHU ZD\ REVWUXFW RU WHUPLQDWHG IRU YLRODWLQJ D ZRUN UXOH SURKLELWLQJ FRXQW\ LQWHUIHUH ZLWK WKH XVH RI DQ\ URDGZD\ RU HQWUDQFHZD\ FRUUHFWLRQRIILFHUVIURPFRKDELWLQJZLWKH[IHORQVRQSDUROH OHDGLQJWRRUDQ\HQWUDQFHWRDQ\RI>$UPFRjV@IDFLOLWLHV 7KH 5HXWHU FRXUW KHOG WKDW WKH $FW mGRHV QRW SUHFOXGH WKH DWDQ\WLPHVRDVWRLPSHGHWKHIORZRIWUDIILFRUDFFHVV GLVWULFW FRXUW IURP LVVXLQJ DQ LQMXQFWLRQ LQ D VHFWLRQ WR RU IURP VXFK IDFLOLWLHV 7KH &LW\ VKDOO LVVXH D DFWLRQ HYHQ WKRXJK WKH DFWLRQ LQYROYHV D ODERU GLVSXWH VXPPRQVLQDFFRUGDQFHZLWKDSSOLFDEOHODZZKHQHYHU EHWZHHQDQHPSOR\HHDQGDPXQLFLSDOLW\l,GDW7KH SUHVHQWHG ZLWK YHULILFDWLRQ RI D YLRODWLRQ RI WKLV 5HXWHUFRXUWUHDVRQHGWKDW SURYLVLRQ ,W ZRXOG EH LQFRQJUXRXV WR UHDG 1RUULV/D*XDUGLD WR 8QGHU VXSHUYLVLRQ RI WKH 86 0DUVKDO WKH &LW\ SUHFOXGH HTXLWDEOH UHOLHI DV D UHPHG\ DYDLODEOH WR WKH 3ROLFH'LYLVLRQVKDOOVHDUFKLQDFFRUGDQFHZLWKVWDWHDQG LQMXUHGSDUW\XQGHUVHFWLRQ MXVWEHFDXVHWKHSDUWLHV IHGHUDO ODZ DQ\ SLFNHW VKDQW\ RU VLPLODU VWUXFWXUH RQ DUHLQYROYHGLQDODERUGLVSXWH SULYDWH SURSHUW\ HUHFWHG LQ FRQQHFWLRQ ZLWK WKH ODERU GLVSXWHIRUZHDSRQVGHVWUXFWLYHRULQFHQGLDU\GHYLFHV DQG RWKHU FRQWUDEDQG DQ\ WLPH LW LV SUHVHQWHG ZLWK YHULILFDWLRQWKDWWKHUHLVUHDVRQWREHOLHYHVXFKVWUXFWXUHV 1RUULV/D*XDUGLDZDVLQWHQGHGWRSURWHFWZRUNHUVIURP KDYHEHHQRUDUHEHLQJXVHGWRVWRUHVXFKREMHFWVRUIRU IHGHUDOFRXUWLQMXQFWLRQVVRDVWRDOORZWKHPWRH[HUFLVH DQ\RWKHUXQODZIXOSXUSRVH RUJDQL]HGHFRQRPLFSRZHU6HH 86& 0DWWHU RI&URZH $VVRFV,QF)G WK&LU :LWKLQ IRUW\HLJKW KRXUV DIWHU WKH LVVXDQFH RI WKLV ,I D FRQVWLWXWLRQDO ULJKW LV YLRODWHG LQ D ODERU 2UGHUWKH&LW\3ROLFH'LYLVLRQVKDOOUHPRYHRUFDXVHWKH GLVSXWH EHWZHHQ D PXQLFLSDO JRYHUQPHQW DQG LWV UHPRYDORIDQ\HQFORVHGVWUXFWXUHEDUULFDGHRUVWDFNVRI HPSOR\HHWKHVHFWLRQ FODLPZLOOLQYDULDEO\EHPDGH SDOOHWVRUEXLOGLQJPDWHULDOVXQODZIXOO\ORFDWHGRQSXEOLF E\ WKH HPSOR\HH $Q LQMXQFWLRQ LVVXHG DJDLQVW WKH SURSHUW\RUULJKWRIZD\DGMDFHQWWR>$UPFRjV@0DQVILHOG PXQLFLSDOLW\ LQ VXFK FLUFXPVWDQFHV GRHV QRW LQWHUIHUH IDFLOLWLHV1RSHUVRQVKDOOHUHFWRUPDLQWDLQDQ\HQFORVHG ZLWKWKHSROLF\DLPVRI1RUULV/D*XDUGLD VWUXFWXUH EDUULFDGH RU VWDFN RU SDOOHWV RU EXLOGLQJ PDWHULDOVRQSXEOLFSURSHUW\RUULJKWRIZD\DGMDFHQWWR ,GDW >$UPFRjV@0DQVILHOGIDFLOLWLHV 7KH &LW\ VKDOO PDLQWDLQ DQG HQIRUFH LWV m]HUR WROHUDQFH SROLF\l IRU FRPPLVVLRQV RI FULPHV LQ FRQQHFWLRQZLWKWKHODERUGLVSXWHLQYROYLQJ>$UPFRjV@ IURP LQMXQFWLRQV $HURQDXWLFDO ,QGXVWULDO GRHV QRW VXSSRUW $UPFRjV 0DQVILHOG RSHUDWLRQ ZKHUHE\ &LW\ SROLFH RIILFHUV ZLOO SRVLWLRQ WKDW WKH GLVWULFW FRXUW KDG MXULVGLFWLRQ WR HQWHU WKH FRQVHQW GHFUHH FULPLQDOO\FKDUJHSHUVRQVIRUYLRODWLRQVRIFULPLQDOODZV LQ WKH FLUFXPVWDQFHV RI WKH GLVSXWH EHWZHHQ $UPFR DQG WKH 8QLRQV $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
:KLOHWKHGLVWULFWFRXUWFRQFOXGHGWKDWWKHFRQVHQWGHFUHH LQ DFFRUGDQFH ZLWK DSSOLFDEOH ORFDO VWDWH DQG IHGHUDO SHUWDLQHG RQO\ WR WKH VHWWOHPHQW RI $UPFRjV FODLP ODZV DJDLQVWWKH&LW\ZHFRQFOXGHWKDWWKHFODLPZRXOGQRWH[LVW EXW IRU WKH XQGHUO\LQJ VWULNH DQG WKH &LW\jV FODLPHG FRQVSLUDF\ ZLWK WKH 8QLRQV WR KDPSHU $UPFRjV XVH RI UHSODFHPHQWZRUNHUVDVVXEVWLWXWHVIRUWKHVWULNLQJPHPEHUV 86 0DUVKDOV VKDOO EH SUHVHQW DW WKH >$UPFR@ RIWKH8QLRQV)XUWKHUZHQRWHWKDWWKHFRQVHQWGHFUHHSODFHV 0DQVILHOGIDFLOLW\DVQHHGHGWRPRQLWRUFRPSOLDQFHZLWK QXPHURXV UHVWULFWLRQV XSRQ WKH 8QLRQVj DFWLYLWLHV LQ WKH WKHWHUPVRIWKLV&RQVHQW'HFUHH FRQWH[WRIWKHODERUGLVSXWHDVZHKDYHQRWHGDERYH 7KH FRQVHQWGHFUHHVD\VWKDWLWLVELQGLQJQRWRQO\WKHFRQVHQWLQJ SDUWLHV$UPFRDQGWKH&LW\EXWDOVRmDOOWKRVHSHUVRQVDQG HQWLWLHVZKRUHFHLYHQRWLFHRILWVWHUPVl0RUHRYHULWVWHUPV 7KH860DUVKDOVZKHQQHFHVVDU\VKDOOUHTXHVWWKH KDYHDJUHDWHULPSDFWRQWKHDFWLRQVRIWKH8QLRQVWKDQRQ &LW\WRLQYRNHPXWXDODLGDJUHHPHQWVIRUREWDLQLQJODZ HLWKHU$UPFRRUWKH&LW\$OWKRXJKWKH&LW\DJUHHVWRWDNH HQIRUFHPHQW DVVLVWDQFH IURP RWKHU ODZ HQIRUFHPHQW FHUWDLQODZHQIRUFHPHQWDFWLRQVoHQIRUFLQJDQRZDON]RQHDW DJHQFLHV DQG VXFK UHTXHVWV ZLOO QRW EH XQUHDVRQDEO\ WKHHQWUDQFHVWR$UPFRjVIDFLOLWLHVVHDUFKLQJSLFNHWVKDQWLHV GHQLHG UHPRYLQJ HQFORVHG VWUXFWXUHV RQ SXEOLF SURSHUW\ DQG PDLQWDLQLQJD]HURWROHUDQFHDWWLWXGHWRZDUGVFRPPLVVLRQVRI FULPHVLQFRQQHFWLRQZLWKWKHODERUGLVSXWHoWKHVHDFWLRQVDUH &RQVHQW'HFUHH1R &9DW GLUHFWHGDWWKHFRQGXFWRIWKHPHPEHUVRIWKH8QLRQV ,QLWV0HPRUDQGXPRI2SLQLRQWKHGLVWULFWFRXUWH[SODLQHG WKDWmWKH&RQVHQW'HFUHHLVOLPLWHGWRQHFHVVDU\PHDVXUHVWR $UPFR $HURQDXWLFDO ,QGXVWULDO 'LVWULFW /RGJH RI WKH FLWHV SUHYHQWYLROHQFHDQGHQVXUHDFFHVVWRDQGIURPWKH3ODLQWLIIjV ,QWHUQDWLRQDO $VVRFLDWLRQ RI 0DFKLQLVWV DQG $HURVSDFH :RUNHUV 0DQVILHOGIDFLOLWLHVl $)/&,2 Y 8QLWHG 7HFKQRORJLHV &RUS 3UDWW :KLWQH\ )G G &LU LQ VXSSRUW RI LWV DUJXPHQW WKDW WKH FRQVHQW GHFUHH GRHV QRW $GGUHVVLQJWKH8QLRQVj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j DELOLW\ WR RUJDQL]H DQG EDUJDLQ WKHHQWU\RIWKHFRQVHQWGHFUHHGLGQRWYLRODWHWKH<RXQJHU FROOHFWLYHO\ 7KH FRXUW DOVR H[SODLQHG WKDW WKH LQMXQFWLRQ VRXJKW WR HQMRLQ FRQGXFW o WKH WUDQVIHU RI ZRUN o QRW VSHFLILFDOO\ LQFOXGHG LQ WKH $FW DEVWHQWLRQGRFWULQHEHFDXVHWKH FODLPVDJDLQVWWKH&LW\ HQXPHUDWLQJ mVSHFLILF DFWV QRW VXEMHFW WR UHVWUDLQLQJ RUGHUV RU ZHUHXQLTXHWRWKHIHGHUDODFWLRQDQGWKHSURYLVLRQVRIWKH LQMXQFWLRQVl LQFOXGLQJ VWULNHV XQLRQL]LQJ SLFNHWLQJ DQG UHIXVLQJ WR VWDWH FRXUW LQMXQFWLRQ ZHUH OHVV VSHFLILF WKDQ WKH FRQVHQW UHPDLQ LQ DQ HPSOR\PHQW UHODWLRQVKLS 6HH LG DW TXRWLQJ 86& GHFUHH)XUWKHUWKHGLVWULFWFRXUWFRQFOXGHGWKDWWKHFRQVHQW GHFUHH GLG QRW YLRODWH WKH 8QLRQVj 'XH 3URFHVV DQG )LUVW +HUH KRZHYHU WKH FRQVHQW GHFUHH GRHV QRW SURPRWH EXW UDWKHU $PHQGPHQW ULJKWV EHFDXVH WKH 8QLRQV ZHUH SURYLGHG DQ LQIULQJHV XSRQ WKH HPSOR\HHVj DELOLW\ WR RUJDQL]H DQG LW HQMRLQV FRQGXFW o VWULNLQJ DQG SLFNHWLQJ o VSHFLILFDOO\ HQXPHUDWHG LQ WKH $FW DV SURWHFWHG RSSRUWXQLW\ WR EH KHDUG UHJDUGLQJ WKHLU REMHFWLRQV WR WKH $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
FRQVHQWGHFUHHDWDFRQIHUHQFHZLWKWKHGLVWULFWMXGJHDQGWKH LQWHUSUHWHGWKHVFRSHRIWKH$FWDVLQWHQWLRQDOO\EURDGVXFK FRQVHQWGHFUHHGLGQRWOLPLWmODZIXOlSLFNHWLQJEXWUDWKHUZDV WKDW D FDVH mLQYROYHV D ODERU GLVSXWHl LI mWKH GHVLJQHGWRmSUHYHQW>@YLROHQFHDQGLPSHGLPHQWVRQDFFHVVWR HPSOR\HUHPSOR\HH UHODWLRQVKLS >LV@ WKH PDWUL[ RI WKH DQG IURP WKH 0DQVILHOG IDFLOLWLHVl ,G DW )LQDOO\ WKH FRQWURYHUV\l&ROXPELD5LYHU3DFNHUV$VVRFLDWLRQ,QFY GLVWULFWFRXUWFRQFOXGHGWKDWLWGLGQRWH[FHHGLWVDXWKRULW\E\ +LQWRQ86 VHHDOVRsDFNVRQYLOOH%XON LQYRNLQJ WKH 8QLWHG 6WDWHV 0DUVKDOV WR PRQLWRU WKH 7HUPLQDOV,QFY,QWHUQDWLRQDO/RQJVKRUHPHQ V$VVRFLDWLRQ FRPSOLDQFHRIWKHFRQVHQWGHFUHHEHFDXVHHQIRUFHPHQWRIWKH 86 FRQVHQWGHFUHHZDVLQFLGHQWDOWRWKH0DUVKDOVj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sXQH ZH HQWHUHG DQ RUGHU FRQVROLGDWLQJ WKH &RQVHQW'HFUHHDW HPSKDVLVDGGHG SHWLWLRQIRUZULWRIPDQGDPXVZLWKWKHDSSHDO ,,,',6&866,21 DVVRFLDWLRQV RI HPSOR\HHV RU ZKHQ WKH FDVH LQYROYHV DQ\ $s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mJUDQWLQJ FRQWLQXLQJ PRGLI\LQJ D GLUHFW RU LQGLUHFW LQWHUHVW WKHUHLQ RU LV D PHPEHU RIILFHU RU DJHQW RI DQ\ DVVRFLDWLRQ FRPSRVHG LQ ZKROH RU LQ SDUW RI UHIXVLQJRUGLVVROYLQJLQMXQFWLRQVRUUHIXVLQJWRGLVVROYHRU HPSOR\HUV RU HPSOR\HHV HQJDJHG LQ VXFK LQGXVWU\ WUDGH FUDIW PRGLI\ LQMXQFWLRQVl $UPFR DUJXHV LQ UHVSRQVH WKDW WKH RU RFFXSDWLRQ FRQVHQW GHFUHH GRHV QRW LQFOXGH DQ LQMXQFWLRQ DQG WKDW ZH F 7KH WHUP ODERU GLVSXWH LQFOXGHV DQ\ FRQWURYHUV\ VKRXOG DSSO\ sRKQVWRQ 'HYHORSPHQW *URXS ,QF Y FRQFHUQLQJ WHUPV RU FRQGLWLRQV RI HPSOR\PHQW RU FRQFHUQLQJ &DUSHQWHUV/RFDO8QLRQ1R )6XSS ' WKH DVVRFLDWLRQ RU UHSUHVHQWDWLRQ RI SHUVRQV LQ QHJRWLDWLQJ IL[LQJ PDLQWDLQLQJ FKDQJLQJ RU VHHNLQJ WR DUUDQJH WHUPV RU 1s DQG WUHDW WKH FRQVHQW GHFUHH DV D VHWWOHPHQW FRQGLWLRQV RI HPSOR\PHQW UHJDUGOHVV RI ZKHWKHU RU QRW WKH DJUHHPHQW,QsRKQVWRQUHDOHVWDWHGHYHORSHUVEURXJKWVXLW GLVSXWDQWV VWDQG LQ WKH SUR[LPDWH UHODWLRQ RI HPSOR\HU DQG DJDLQVWSLFNHWLQJXQLRQVDQGQRQXQLRQVXSSOLHUVZKRUHIXVHG HPSOR\HH $UPFR,QFY8QLWHG 1RV 1RV $UPFR,QFY8QLWHG 6WHHOZRUNHUVHWDO 6WHHOZRUNHUVHWDO
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sRKQVWRQ 'HIHQGDQWVGHSULYHGLWRILWVVWDWXWRU\DQGFRQVWLWXWLRQDO FRXUWKHOGWKDWWKHVWLSXODWLRQVZHUHQRWLQMXQFWLRQVUHDVRQLQJ SURSHUW\ ULJKWV WR RSHUDWH LWV SODQW 7KHVH FODLPV DUH WKDW ZKROO\ LQGHSHQGHQW RI WKH ODERU GLVSXWH EHWZHHQ WKH 3ODLQWLIIDQG8QLRQ'HIHQGDQWV 7KH DJUHHPHQWV HPERGLHG LQ WKH VWLSXODWLRQV GR QRW DSSO\WRWKHXQLRQVEHFDXVHWKHXQLRQVZHUHQRWSDUWLHV 7KH8QLRQVLQWXUQDUJXHWKDWWKHLQMXQFWLYHSURYLVLRQVRI WRWKHP)LUHILJKWHUV/RFDO8QLRQ1RY6WRWWV WKH FRQVHQW GHFUHH UHODWH WR WKH ODERU GLVSXWH DW $UPFRj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mDQ\ FRQWURYHUV\ SDUW\WRYLRODWHWKHDJUHHPHQWV FRQFHUQLQJWHUPVRUFRQGLWLRQVRIHPSOR\PHQWRUFRQFHUQLQJ WKH DVVRFLDWLRQ RU UHSUHVHQWDWLRQ RI SHUVRQV QHJRWLDWLQJ ,GDW HPSKDVLVDGGHG IL[LQJPDLQWDLQLQJFKDQJLQJRUVHHNLQJWRDUUDQJHWHUPVRU FRQGLWLRQVRIHPSOR\PHQWUHJDUGOHVVRIZKHWKHURUQRWWKH 7KHVWLSXODWLRQVLQsRKQVWRQKRZHYHUDUHGLVWLQJXLVKDEOH GLVSXWDQWVVWDQGLQWKHSUR[LPDWHUHODWLRQRIHPSOR\HUDQG IURP WKH FRQVHQW GHFUHH 6SHFLILFDOO\ WKH FRQVHQW GHFUHH HPSOR\HHl 86& F 7KH6XSUHPH&RXUWKDV ELQGVWKH8QLRQV,WLVFOHDUIURPWKHODQJXDJHRIWKHFRQVHQW GHFUHHWKDWLWFRQWDLQVDQLQMXQFWLRQHQMRLQLQJm>D@Q\SHUVRQ ZKRYLRODWHVlLWVSURYLVLRQV7KHUHIRUHZHKDYHMXULVGLFWLRQ RYHUWKHFRQVHQWGHFUHHXQGHU86& D 7KH SHUWLQHQW SURYLVLRQV RI 86& UHDG D $ FDVH VKDOO EH KHOG WR LQYROYH RU WR JURZ RXW RI D ODERU $UPFRDUJXHVWKDWHYHQLIWKHFRQVHQWGHFUHHLQFOXGHVDQ GLVSXWH ZKHQ WKH FDVH LQYROYHV SHUVRQV ZKR DUH HQJDJHG LQ WKH VDPH LQGXVWU\ WUDGH FUDIW RU RFFXSDWLRQ RU KDYH GLUHFW RU LQMXQFWLRQKRZHYHUWKLV&RXUWODFNVMXULVGLFWLRQWRFRQVLGHU LQGLUHFW LQWHUHVWV WKHUHLQ RU ZKR DUH HPSOR\HHV RI WKH VDPH WKH 8QLRQVj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
IRUH[DPSOHWKHH[DFWGLPHQVLRQVRIWKHQRZDON]RQHWKH ODERUGLVSXWHl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mODERUGLVSXWHlDVGHILQHGLQWKH$FW :HUHYLHZDJUDQWRIDSUHOLPLQDU\LQMXQFWLRQIRUDQDEXVH EHFDXVHWKH\GRQRWUHODWHWRWKHWHUPVDQGFRQGLWLRQVRI RIGLVFUHWLRQ6HH$OOLHG6\VWHPV/WGY7HDPVWHUV1DWLRQDO HPSOR\PHQWRUWKHUHSUHVHQWDWLRQRIWKHHPSOR\HHVLQ $XWRPRWLYH 7UDQVSRUWHUV ,QGXVWU\ 1HJRWLDWLQJ &RPPLWWHH QHJRWLDWLQJ RU IL[LQJ WKH WHUPV DQG FRQGLWLRQV RI /RFDO 8QLRQ )G WK &LU $Q DEXVHRIGLVFUHWLRQLVSUHVHQWZKHQWKHGLVWULFWFRXUWmDSSOLHV WKH LQFRUUHFW OHJDO VWDQGDUG PLVDSSOLHV WKH FRUUHFW OHJDO 6SHFLILFDOO\ D GLVWULFW FRXUW PD\ QRW LVVXH DQ LQMXQFWLRQ LQ D FDVH VWDQGDUGRUUHOLHVXSRQFOHDUO\HUURQHRXVILQGLQJVRIIDFWl LQYROYLQJ RU JURZLQJ RXW RI D ODERU GLVSXWH EHIRUH WDNLQJ WKH IROORZLQJ ,GDW:HUHYLHZWKHGLVWULFWFRXUW VILQGLQJVRIIDFWIRU VWHSV FOHDUHUURUDQGLWVFRQFOXVLRQVRIODZGHQRYR6HHLG FLWLQJ KHDULQJ WKH WHVWLPRQ\ RI ZLWQHVVHV LQ RSHQ FRXUW ZLWK *ROGHQ Y .HOVH\+D\HV &R )G WK &LU RSSRUWXQLW\ IRU FURVVH[DPLQDWLRQ LQ VXSSRUW RI WKH DOOHJDWLRQV RI D FRPSODLQW PDGH XQGHU RDWK DQG WHVWLPRQ\ LQ RSSRVLWLRQ WKHUHWR LI RIIHUHG DQG H[FHSW DIWHU ILQGLQJV RI IDFW E\ WKH FRXUW &7KH1RUULV/D*XDUGLD$FW WR WKH HIIHFWo D 7KDW XQODZIXO DFWV KDYH EHHQ WKUHDWHQHG DQG ZLOO EH FRPPLWWHG XQOHVV UHVWUDLQHG RU KDYH EHHQ FRPPLWWHG DQG ZLOO EH 7KH 8QLRQV DUJXH WKDW WKH 1RUULV/D*XDUGLD $FW mWKH FRQWLQXHG XQOHVV UHVWUDLQHG EXW QR LQMXQFWLRQ RU WHPSRUDU\ $FWl 86& GLYHVWHG WKH GLVWULFW FRXUW RI UHVWUDLQLQJ RUGHU VKDOO EH LVVXHG RQ DFFRXQW RI DQ\ WKUHDW RU MXULVGLFWLRQWRHQWHUWKHFRQVHQWGHFUHHEHFDXVHLWIDLOHGWR XQODZIXO DFW H[FHSWLQJ DJDLQVW WKH SHUVRQ RU SHUVRQV FRQGXFWDQHYLGHQWLDU\KHDULQJ(QDFWHGWRmWDN>H@WKHIHGHUDO DVVRFLDWLRQ RU RUJDQL]DWLRQ PDNLQJ WKH WKUHDW RU FRPPLWWLQJ WKH FRXUWVRXWRIWKHODERULQMXQFWLRQEXVLQHVVlsDFNVRQYLOOH%XON XQODZIXO DFW RU DFWXDOO\ DXWKRUL]LQJ RU UDWLI\LQJ WKH VDPH DIWHU 7HUPLQDOV,QFY,QWHUQDWLRQDO/RQJVKRUHPHQ V$VVRFLDWLRQ DFWXDO NQRZOHGJH WKHUHRI E 7KDW VXEVWDQWLDO DQG LUUHSDUDEOH LQMXU\ WR FRPSODLQDQW V 86 WKH$FWGHSULYHVIHGHUDOFRXUWVRI SURSHUW\ ZLOO IROORZ MXULVGLFWLRQmWRLVVXHDQ\UHVWUDLQLQJRUGHURUWHPSRUDU\RU F 7KDW DV WR HDFK LWHP RI UHOLHI JUDQWHG JUHDWHU LQMXU\ ZLOO EH SHUPDQHQWLQMXQFWLRQLQDFDVHLQYROYLQJRUJURZLQJRXWRID LQIOLFWHG XSRQ FRPSODLQDQW E\ WKH GHQLDO RI UHOLHI WKDQ ZLOO EH LQIOLFWHG XSRQ GHIHQGDQWV E\ WKH JUDQWLQJ RI UHOLHI G 7KDW FRPSODLQDQW KDV QR DGHTXDWH UHPHG\ DW ODZ DQG H 7KDW WKH SXEOLF RIILFHUV FKDUJHG ZLWK WKH GXW\ WR SURWHFW FRPSODLQDQW V SURSHUW\ DUH XQDEOH RU XQZLOOLQJ WR IXUQLVK DGHTXDWH SURWHFWLRQ 86&
Reference
- Status
- Published