Regensburger v. Bowling Green OH
Regensburger v. Bowling Green OH
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
s26(3+ s 5(*(16%85*(5 ; s(5(0< 1())HWDO 3ODLQWLIIV$SSHOOHHV 1R Y ! &,7< 2) %2:/,1* *5((1 2+,2HWDO 'HIHQGDQWV$SSHOODQWV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW7ROHGR 1R n'DYLG$.DW]'LVWULFWsXGJH $UJXHG 6HSWHPEHU 'HFLGHGDQG)LOHG sDQXDU\ %HIRUH %$7&+(/'(5&2/(DQG*,%621&LUFXLW sXGJHV
7KH +RQRUDEOH sRKQ 5 *LEVRQ &LUFXLW sXGJH RI WKH 8QLWHG 6WDWHV &RXUW RI $SSHDOV IRU WKH (LJKWK &LUFXLW VLWWLQJ E\ GHVLJQDWLRQ
5HJHQVEXUJHUHWDOY&LW\RI 1R %RZOLQJ*UHHQ2KLRHWDO
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 6WHYHQ/6SLWOHU63,7/(592*76%(5*(5 +8))0$1 %RZOLQJ *UHHQ 2KLR IRU $SSHOODQWV 5RGQH\$)OHPLQJ678'(17/(*$/6(59,&(6,1& %2:/,1**5((181,9(56,7<%RZOLQJ*UHHQ2KLR IRU $SSHOOHHV 21 %5,() 6WHYHQ / 6SLWOHU 0LPL 6 <RRQ63,7/(592*76%(5*(5 +8))0$1%RZOLQJ *UHHQ2KLRIRU$SSHOODQWV5RGQH\$)OHPLQJ678'(17 /(*$/ 6(59,&(6 ,1& %2:/,1* *5((1 81,9(56,7<%RZOLQJ*UHHQ2KLRIRU$SSHOOHHV &2/(sGHOLYHUHGWKHRSLQLRQDQGMXGJPHQWRIWKHFRXUW %$7&+(/'(5sFRQFXUULQJLQWKHMXGJPHQWRIWKHFRXUW EXWGLVVHQWLQJDVWRWKHUHDVRQLQJHPSOR\HGLQ3DUW,,,) SS *,%621sMRLQVLQs%$7&+(/'(5jVVHSDUDWH ZULWLQJ DV WR 3DUW ,,,) ZKLFK EHFRPHV WKH RSLQLRQ RI WKH FRXUW BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 5*8<&2/(s5&LUFXLWsXGJH3ODLQWLIIV$SSHOOHHV UHVLGHQWV RI %RZOLQJ *UHHQ 2KLR LQFOXGLQJ VWXGHQWV DW %RZOLQJ*UHHQ6WDWH8QLYHUVLW\ m%*68l DOOFROOHFWLYHO\ UHIHUUHGWRKHUHLQDVm3ODLQWLIIVl LQLWLDWHGWKHSUHVHQWDFWLRQ DJDLQVW'HIHQGDQWV$SSHOODQWVWKH&LW\RI%RZOLQJ*UHHQ 2KLRDQGYDULRXVFLW\RIILFLDOV FROOHFWLYHO\UHIHUUHGWRKHUHLQ DVmWKH&LW\l DOOHJLQJWKDWWKH&LW\jVYRWLQJDSSRUWLRQPHQW VFKHPH YLRODWHG WKHLU ULJKWV XQGHU WKH )RXUWHHQWK $PHQGPHQWjV(TXDO3URWHFWLRQ&ODXVH$IWHUDEHQFKWULDO DPDJLVWUDWHMXGJHIRXQGWKDWWKH&LW\jVDSSRUWLRQPHQWSODQ GHYLDWHVIURPDEVROXWHSRSXODWLRQHTXDOLW\E\DWOHDVW WKDW WKH &LW\ KDG VHW IRUWK D UDWLRQDO VWDWH SROLF\ IRU WKH GHYLDWLRQ WKDWWKHSODQDGYDQFHGWKHDUWLFXODWHGSROLF\ DQG WKDW WKH DUWLFXODWHG SROLF\ QRWZLWKVWDQGLQJ WKH SRSXODWLRQ 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO
GHYLDWLRQ H[FHHGHG FRQVWLWXWLRQDO OLPLWV 7KH PDJLVWUDWH MXGJHRUGHUHGWKH&LW\WRGHYHORSDQGVXEPLWWRWKHFRXUWIRU LWV UHYLHZ DQG DSSURYDO D FRQVWLWXWLRQDOO\ SHUPLVVLEOH UHDSSRUWLRQPHQW SODQ 7KH GLVWULFW FRXUW DIILUPHG WKH MXGJPHQWRIWKHPDJLVWUDWHMXGJHLQLWVHQWLUHW\DQGWKH&LW\ QRZ DSSHDOV DVVLJQLQJ HUURU WR WKH PDJLVWUDWH MXGJHjV GHWHUPLQDWLRQV WKDW %RZOLQJ *UHHQ LV VXEMHFW WR WKH UHTXLUHPHQWV RI 2KLR 5HYLVHG &RGH WKH SRSXODWLRQ GHYLDWLRQ DPRQJ WKH &LW\jV ZDUGV ZDV QRW PLWLJDWHG VXIILFLHQWO\ E\ WKH &LW\jV SURYLVLRQ RI DWODUJH UHSUHVHQWDWLRQ WKH&LW\PXVWGHYHORSDUHDSSRUWLRQPHQW VFKHPH ZLWKRXW JXLGDQFH IURP WKH FRXUW DV WR WKH DSSURSULDWHSRSXODWLRQEDVHWREHXVHG WKH VWDWLVWLFV JHQHUDWHGE\WKH8QLWHG6WDWHV'HSDUWPHQWRI+RXVLQJDQG 8UEDQ'HYHORSPHQWZHUHmXQVXSSRUWHGE\VXIILFLHQWIDFWVl WKXV UHTXLULQJ WKH SDUWLHV WR UHO\ XSRQ WKH )HGHUDO &HQVXV SRSXODWLRQ ILJXUHV DQG DOWKRXJK WKH &LW\jV SROLFLHVXSRQZKLFKWKHSUHVHQWDSSRUWLRQPHQWSODQLVEDVHG DUH UDWLRQDO WKH OHJLVODWLYH SODQ LV QHYHUWKHOHVV XQFRQVWLWXWLRQDO)RUWKHUHDVRQVWKDWIROORZZH$)),50 WKH RUGHU RI WKH GLVWULFW FRXUW LQ LWV WUHDWPHQW RI WKH ILYH DVVLJQPHQWVRIHUURU:H5(9(56(WKHMXGJPHQWRIWKH GLVWULFW FRXUW WR UHWDLQ MXULVGLFWLRQ RYHU WKLV FDVH IRU WKH SXUSRVH RI UHYLHZLQJ WKH FRQVWLWXWLRQDOLW\ RI WKH &LW\jV SURSRVHGUHDSSRUWLRQPHQWVFKHPH ,%$&.*5281' %RZOLQJ*UHHQ2KLRLVFHQWHUHGDWWKHFURVVURDGVRI86 5RXWH DQG 86 5RXWH 7KHVH ELVHFWLQJ KLJKZD\V HVWDEOLVKDQDWXUDOGLYLVLRQRIWKHFLW\LQWRIRXUJHRJUDSKLF TXDGUDQWV ZKLFK VLQFH WKH FLW\jV LQFHSWLRQ LQ KDYH FRQVWLWXWHGIRXUOHJLVODWLYHZDUGV7KH%RZOLQJ*UHHQ&LW\ &KDUWHU m&KDUWHUl SURYLGHV WKDW %RZOLQJ *UHHQjV &LW\ &RXQFLO VKDOO FRQVLVW RI WKUHH PHPEHUV VHOHFWHG mDW ODUJHl EDVHG XSRQ WKH WRWDO QXPEHU RI YRWHV UHFHLYHG DQG RQH FRXQFLOPHPEHUVHOHFWHGIURPHDFKRIWKHFLW\jVIRXUZDUGV 7KLVDSSRUWLRQPHQWVFKHPHZDVLQFRUSRUDWHGLQWRWKH&KDUWHU RQ2FWREHU ZKHQWKHPXQLFLSDOLW\EHFDPHDFLW\ 5HJHQVEXUJHUHWDOY&LW\RI 1R 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO %RZOLQJ*UHHQ2KLRHWDO
$OWKRXJK 5RXWHV DQG IRUP D QDWXUDO JHRJUDSKLF RWKHUKDQGLVUDWLRQDOO\EDVHGDQGUDWLRQDOO\IXUWKHUHGE\WKH GLYLVLRQRIWKHFLW\WKH\GRQRWGLYLGHWKHFLW\LQWRTXDGUDQWV FKDOOHQJHGSODQ7KHUHLVQRKLQWRILQYLGLRXVGLVFULPLQDWLRQ FRQWDLQLQJSURSRUWLRQDOQXPEHUVRIWKHFLW\jVSRSXODWLRQGXH DQGQRVXJJHVWLRQWKDWWKH&LW\ZLOOQRWUHDGLO\FRPSO\ZLWK LQSDUWWRWKHVWXGHQWSRSXODWLRQRI%*68ZKLFKLVVLWXDWHG WKH GLVWULFW FRXUWjV RUGHU 7KXV ZKLOH EURDG VWUXFWXUDO LQ3UHFLQFW&RI:DUG7KH&LW\PDLQWDLQVWKDWLWOLNH PDQGDWHV PD\ EH QHFHVVDU\ LQ WKH FRQWH[WV RI VFKRRO RWKHU mFROOHJH WRZQVl ZLWK VLJQLILFDQW SRSXODWLRQV RI GHVHJUHJDWLRQDQGSULVRQDGPLQLVWUDWLRQWKH\PRVWFHUWDLQO\ VWXGHQWVSURSHUO\VXEVWLWXWHVWKHQXPEHURIUHJLVWHUHGYRWHUV DUHQRWQHHGHGKHUH LQ WKH VSHFLILF mFDPSXVl SUHFLQFWV IRU WKH &HQVXVEDVHG SRSXODWLRQV ZKHQ UHYLHZLQJ GLVWULFW UHSUHVHQWDWLRQ :H UHYHUVH WKH GLVWULFW FRXUWj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jV(TXDO EHWZHHQWKHIHGHUDOMXGLFLDU\DQGDVWDWHHQWLW\6HH)ODVWY 3URWHFWLRQ&ODXVHDQGVRXJKWGHFODUDWRU\DQGLQMXQFWLYHUHOLHI &RKHQ 86 GLVFXVVLQJWKHVHSDUDWLRQRI IURPWKH&LW\2Q6HSWHPEHU DPDJLVWUDWHMXGJH SRZHUV OLPLWV RQ WKH IHGHUDO MXGLFLDU\ LQ UHODWLRQ WR WKH JUDQWHG 3ODLQWLIIVj PRWLRQ IRU SDUWLDO VXPPDU\ MXGJPHQW OHJLVODWLYHSRZHU ILQGLQJWKDW3ODLQWLIIVKDGHVWDEOLVKHGDSULPDIDFLHFDVHRI GLVFULPLQDWLRQ DQG OHDYLQJ IRU WULDO RQO\ UHVROXWLRQ RI WKH TXHVWLRQZKHWKHUWKH&LW\jVVWDWHGUHDVRQVIRUPDLQWDLQLQJWKH ZDUG ERXQGDULHV SURYLGHG D UDWLRQDO DQG FRQVWLWXWLRQDOO\ SHUPLVVLEOHMXVWLILFDWLRQIRUWKHSRSXODWLRQGHYLDWLRQV$WDQ 2FWREHU EHQFK WULDO EHIRUH WKH PDJLVWUDWH MXGJH 3ODLQWLIIVDUJXHGWKDWWKH&LW\jVSODQYLRODWHGWKHmPD[LPXP SRSXODWLRQ GHYLDWLRQl VWDQGDUG RI DPRQJ OHJLVODWLYH
7KH )HGHUDO &HQVXV UHYHDOHG WKDW WKH SRSXODWLRQ RI HDFK RI WKH IRXU ZDUGV ZDV DV IROORZV :DUG SRSXODWLRQ RI WRWDO SRSXODWLRQ :DUG SRSXODWLRQ RI WRWDO SRSXODWLRQ :DUG SRSXODWLRQ RI WRWDO SRSXODWLRQ :DUG SRSXODWLRQ RI WRWDO SRSXODWLRQ 5HJHQVEXUJHUHWDOY&LW\RI 1R 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO %RZOLQJ*UHHQ2KLRHWDO
BBBBBBBBBBBBBBBBBBBB GLVWULFWVDVUHTXLUHGE\9RLQRYLFKY4XLOWHU86 QRWLQJ WKDW D SULPD IDFLH FDVH RI &21&855(1&( GLVFULPLQDWLRQ LV HVWDEOLVKHG XSRQ D VKRZLQJ WKDW DQ BBBBBBBBBBBBBBBBBBBB DSSRUWLRQPHQWSODQKDVDPD[LPXPWRWDOGHYLDWLRQIURPLGHDO GLVWULFWVL]HLQH[FHVVRI $IWHUWHVWLPRQ\E\YDULRXV $/,&(0%$7&+(/'(5&LUFXLWsXGJHFRQFXUULQJLQ FLW\RIILFLDOVWKHPDJLVWUDWHMXGJHIRXQGWKDW3ODLQWLIIVKDG WKHMXGJPHQWEXWGLVVHQWLQJDVWRWKHUHDVRQLQJHPSOR\HGLQ DOOHJHGDSULPDIDFLHFDVHRIGLVFULPLQDWLRQLUUHVSHFWLYHRI 3DUW,,,)*,%621sMRLQVLQs%$7&+(/'(5j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jV SUHVHQW DSSRUWLRQPHQW VFKHPH DTXHVWLRQDEOHSURSRVLWLRQ6HH0F'RZHOOY.UDZFKLVRQ FRQVWLWXWLRQDOO\ GHIHFWLYH 7KH FRXUW RUGHUHG WKH &LW\ WR )G WK &LU m:H ZLOO DIILUP WKH GHYHORSDUHDSSRUWLRQPHQWSODQDQGUHWDLQHGMXULVGLFWLRQWR GHFLVLRQRIWKHGLVWULFWFRXUWLILWLV FRUUHFWIRUDQ\UHDVRQ UHYLHZ DQG DSSURYH WKH QHZ DSSRUWLRQPHQW VFKHPH :H LQFOXGLQJ D UHDVRQ QRW FRQVLGHUHG E\ WKDW FRXUWl :H JUDQWHGWKH&LW\jVPRWLRQIRUOHDYHWRDSSHDO7KLVDSSHDO UHYHUVHWKHGLVWULFWFRXUWjVGHFLVLRQWRUHWDLQMXULVGLFWLRQRQD IROORZV GLIIHUHQWEDVLV ,,67$1'$5'2)5(9,(: :HILQGWKDWWKHGLVWULFWFRXUWDEXVHGLWVGLVFUHWLRQEHFDXVH XQGHU WUDGLWLRQDO HTXLWDEOH SULQFLSOHV LWV UHWHQWLRQ RI :HUHYLHZGHQRYRWKHGLVWULFWFRXUWjVLQWHUSUHWDWLRQRIWKH MXULVGLFWLRQ ZDVQRWQHFHVVDU\7KHDUHDVRIWKHODZPRVW UHOHYDQW ODZ EXW UHYLHZ LWV IDFWXDO ILQGLQJV IRU FOHDU HUURU H[SOLFLWO\VWDQGLQJIRUWKHSURSRVLWLRQWKDWDGLVWULFWFRXUWPD\ RQO\6HH7KRUQEXUJY*LQJOHV86 VHH UHWDLQ MXULVGLFWLRQ WR HQVXUH WKH FHVVDWLRQ RI D FRQWLQXLQJ DOVR&RXVLQY0F:KHUWHU)G WK&LU FRQVWLWXWLRQDO YLRODWLRQ LQFOXGH VFKRRO GHVHJUHJDWLRQ DQG m$ GLVWULFW FRXUWjV IDFWXDO ILQGLQJV UHJDUGLQJ 6HFWLRQ SULVRQ UHIRUP :H GR QRW EHOLHYH WKHVH WZR DUHDV DUH YLRODWLRQVDQGWKHGHWHUPLQDWLRQRIZKHWKHUYRWHGLOXWLRQKDV DQDORJRXVWRWKHVLWXDWLRQSUHVHQWHGE\WKLVFDVH5HWHQWLRQ RFFXUUHGDUHRUGLQDULO\UHYLHZHGIRUFOHDUHUURUl FLWLQJ)(' RIMXULVGLFWLRQLQVFKRROGHVHJUHJDWLRQFDVHVZDVQHFHVVLWDWHG 5 &,9 3 D E\ WKH FRQWLQXHG UHIXVDO RI VFKRRO GLVWULFWV WR UHFWLI\ WKHLU XQFRQVWLWXWLRQDO VHJUHJDWLRQ 7KH FRXUWV WKHUH IDFHG HQWUHQFKHGFXOWXUDORSSRVLWLRQWRWKHLURUGHUV,QWKHSULVRQ FRQWH[W WKH FRXUWV IDFHG VWDWHV XQZLOOLQJ WR UHFRJQL]H WKH PDQGDWHVRIWKH6XSUHPH&RXUWjVEURDGLQWHUSUHWDWLRQRIWKH (LJKWK DQG RWKHU DPHQGPHQWV &LWLQJ VWDWH UHFDOFLWUDQFH GLVWULFW FRXUWV LPSRVHG VWUXFWXUDO LQMXQFWLRQV RQ SULVRQ DGPLQLVWUDWLRQVWRHQVXUHFRPSOLDQFHZLWKWKHGHFUHHVRIWKH 6XSUHPH&RXUW%RZOLQJ*UHHQjVGLVWULFWLQJSROLF\RQWKH 5HJHQVEXUJHUHWDOY&LW\RI 1R 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO %RZOLQJ*UHHQ2KLRHWDO
,,,',6&866,21 IDFWXDO RU OHJDO EDVLV IRU WKH QHHG WR UHWDLQ MXULVGLFWLRQ LV HTXLYDOHQWWRmLPSURSHUO\DSSO\>LQJ@WKHJRYHUQLQJODZRU $&KDUWHU&LW\ XV>LQJ@DQHUURQHRXVOHJDOVWDQGDUGlDQGFRQVWLWXWHVDQDEXVH RIGLVFUHWLRQ,G:HWKHUHIRUHKROGWKDWWKHPDJLVWUDWHMXGJH %RZOLQJ *UHHQ D FKDUWHU FLW\ VXEMHFW WR $UWLFOH ;9,,, LPSURSHUO\UHWDLQHGMXULVGLFWLRQRYHUWKLVFDVHIRUWKHOLPLWHG 6HFWLRQRIWKH2KLR&RQVWLWXWLRQLVJRYHUQHGE\DFKDUWHU SXUSRVH RI UHYLHZLQJ WKH FRQVWLWXWLRQDOLW\ RI WKH &LW\jV WKDWSURYLGHVLQSHUWLQHQWSDUWWKDW SURSRVHGUHDSSRUWLRQPHQWVFKHPHDQGUHYHUVHWKHMXGJPHQW RIWKHGLVWULFWFRXUWRQWKLVSRLQW >W@KHOHJLVODWLYHSRZHURIWKHFLW\VKDOOEHYHVWHGLQDFLW\ FRXQFLOZKLFKVKDOOEHDFRQWLQXLQJERG\FRQVLVWLQJRI ,9&21&/86,21 PHPEHUV DW ODUJH DQG RQH PHPEHU IURP HDFK RI VXFK HYHQ QXPEHU RI ZDUGV ZKLFK VKDOO EH HVWDEOLVKHG E\ $FFRUGLQJO\ZH$)),50LQSDUWDQG5(9(56(LQSDUW FRXQFLOE\RUGLQDQFHHQDFWHGQRWODWHUWKDQsDQXDU\RI WKHMXGJPHQWRIWKHGLVWULFWFRXUW WKH \HDU LQ ZKLFK WKH ILUVW HOHFWLRQ IRU PHPEHUV RI FRXQFLOIURPZDUGVDVHVWDEOLVKHGE\VXFKRUGLQDQFHLVWR EHKHOG 2KLRODZSURYLGHVWKDWmWKHOHJLVODWLYHDXWKRULW\RIDFLW\VKDOO VXEGLYLGHWKHFLW\LQWRZDUGVHTXDOLQQXPEHUWRWKHPHPEHUV RI WKH OHJLVODWLYH DXWKRULW\ WR EH HOHFWHG IURP ZDUGVl DQG GHOLQHDWHV WKH PDQQHU LQ ZKLFK D FLW\ LV WR FDUU\ RXW WKLV GLUHFWLYH2+,2 5(9 &2'( $11 $QGHUVRQ 5HO\LQJ RQ WKH ODQJXDJH RI WKH PDJLVWUDWH MXGJH IRXQGWKDWm>D@FLW\FRXQFLOKDVWKHFRQWLQXLQJDXWKRULW\DQG GXW\WRUHGLYLGHWKHFLW\LQWRSURSHUZDUGVSXUVXDQWWRODZ ZKHQDQLQFUHDVHLQSRSXODWLRQRFFXUVl 7KH &LW\ VHL]HV XSRQ WKLV VWDWHPHQW DUJXLQJ WKDW WKH PDJLVWUDWHMXGJHHUURQHRXVO\FRQFOXGHGWKDWDFLW\LVUHTXLUHG WR HVWDEOLVK D ZDUG V\VWHP DQG WKDW WKH &LW\jV K\EULG DW ODUJHZDUGV\VWHPLVWKHUHIRUHLPSHUPLVVLEOHDVDPDWWHURI ODZ&LWLQJ3HVHNY &LW\RI%UXQVZLFN )6XSS 1' 2KLR IRU WKH SURSRVLWLRQ WKDW D FKDUWHU FLW\
& RPPRQO\ UHIHUUHG WR DV WKH m+RPH 5XOHl SURYLVLRQ $UWLFOH ;9,,, 6HFWLRQ SURYLGHV WKDW m>D@Q\ PXQLFLSDOLW\ PD\ IUDPH DQG DGRSW RU DPHQG D FKDUWHU IRU LWV JRYHUQPHQW DQG PD\ VXEMHFW WR WKH SURYLVLRQV RI VHFWLRQ RI WKLV DUWLFOH H[HUFLVH WKHUHXQGHU DOO SRZHUV RI ORFDO VHOI JRYHUQPHQWl 2 +,2 &2167 DUW ;9,,, 5HJHQVEXUJHUHWDOY&LW\RI 1R 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO %RZOLQJ*UHHQ2KLRHWDO
SHUPLVVLEOH UHDSSRUWLRQPHQW SODQ :LWK UHVSHFW WR VXEMHFW WR mKRPH UXOHl PD\ HQDFW D SURYLVLRQ WKDW LV LQ MXULVGLFWLRQWKHPDJLVWUDWHMXGJHjVPHPRUDQGXPDQGRUGHU FRQIOLFW ZLWK VWDWH ODZ WKH &LW\ DUJXHV WKDW EHFDXVH WKH VWDWHG &KDUWHU SURYLVLRQ DOORZLQJ D K\EULG V\VWHP LV LQ GLUHFW FRQIOLFW ZLWK V UHTXLUHPHQW WKDW D FLW\ HVWDEOLVK D ,Q YLHZ RI WKH IRUHJRLQJ 'HIHQGDQWV DUH KHUHE\ ZDUGV\VWHPRIUHSUHVHQWDWLRQWKHPDJLVWUDWHMXGJHHUUHGE\ 25'(5('WRGHYHORSDSODQIRUUHDSSRUWLRQPHQWZLWKLQ UHTXLULQJWKH&LW\WRDGRSWDZDUGV\VWHP VL[PRQWKVIURPWKHGDWHRIWKLVMXGJPHQWDQGWRVXEPLW VXFKSODQWRWKH&RXUW7KLV&RXUWUHWDLQVMXULVGLFWLRQIRU 7KH&LW\jVDUJXPHQWLVZLWKRXWPHULW,QWKHILUVWLQVWDQFH UHYLHZDQGDSSURYDORIVXFKSODQ WKHPDJLVWUDWHMXGJHGLGQRWPDNHDILQGLQJWKDWWKHDWODUJH V\VWHPZDVSURKLELWHGE\QRUGLGVKHFRQFOXGHWKDW 7KH&LW\GLGQRWUDLVHWKHPDJLVWUDWHMXGJHjVGHFLVLRQWRUHWDLQ WKH&LW\FRXOGQRWDGRSWDQDWODUJHV\VWHP5DWKHUVKHIRXQG MXULVGLFWLRQ LQ LWV DSSHDO WR WKH GLVWULFW MXGJH 7KH GLVWULFW WKDWHYHQZKHQWDNLQJDWODUJHUHSUHVHQWDWLRQLQWRDFFRXQW MXGJH DIILUPHG WKH PDJLVWUDWH MXGJHjV RSLQLRQ LQ WRWR WKHGHYLDWLRQIURPLGHDOGLGQRWSDVVFRQVWLWXWLRQDOPXVWHU /LNHZLVHWKHLVVXHRIUHWHQWLRQRIMXULVGLFWLRQZDVQRWUDLVHG 6HFRQG DQG PRUH LPSRUWDQW 3HVHN GRHV QRW FUHDWH OHJDO LQWKLVDSSHDODQGZDVQRWDGGUHVVHGE\HLWKHUSDUW\LQHLWKHU DXWKRULW\IRUWKH&LW\WRDYRLGWKHUHDFKRI:KLOH WKHLQLWLDORUVXSSOHPHQWDOEULHIVRUDWRUDODUJXPHQW LW LV WUXH WKDW m>W@KH JHQHUDO UXOH LV WKDW LQ PDWWHUV RI ORFDO VHOIJRYHUQPHQW LI WKHUH LV D FRQIOLFW EHWZHHQ D FKDUWHU $OWKRXJKQHLWKHUSDUW\DGGUHVVHVWKLVLVVXHmHYHU\IHGHUDO SURYLVLRQDQGDVWDWXWHWKHFKDUWHUSURYLVLRQSUHYDLOVlWKH DSSHOODWHFRXUWKDVDVSHFLDOREOLJDWLRQWRµVDWLVI\LWVHOIQRW &LW\ KDV VKRZQ QR FRQIOLFW EHWZHHQ LWV &KDUWHU DQG WKH RQO\RILWVRZQMXULVGLFWLRQEXWDOVR>RI@WKDWRIWKHORZHU VWDWXWH6WDWHH[UHO%DUGRY&LW\RI/\QGKXUVW1(G FRXUWVLQDFDXVHXQGHUUHYLHZjHYHQWKRXJKWKHSDUWLHVDUH 2KLR 7KH &KDUWHU UHTXLUHV DWODUJH DQG SUHSDUHG WR FRQFHGH LWl $UL]RQDQV IRU 2IILFLDO (QJOLVK Y GLUHFW ZDUG UHSUHVHQWDWLRQ PHUHO\ GLUHFWV WKH $UL]RQD86 TXRWLQJ0LWFKHOOY0DXUHU OHJLVODWLYHDXWKRULW\RIDFLW\WKDWHPSOR\VDZDUGV\VWHPRI 86 ,QFRQVLGHULQJZKHWKHUWKHORZHU UHSUHVHQWDWLRQWRVXEGLYLGHWKHFLW\LQWRZDUGV1HLWKHUWKH FRXUWjV UHWHQWLRQ RI MXULVGLFWLRQ RYHU WKH &LW\ SODQ LV RUJDQL]DWLRQSURYLVLRQVRIQRUWKHPDJLVWUDWHMXGJHjV mQHFHVVDU\ RU SUDFWLFDEOH WR DFKLHYH FRPSOLDQFHl ZLWK RUGHUUHTXLUHVDQ\SDUWLFXODUIRUPRIDSSRUWLRQPHQWVFKHPH FRQVWLWXWLRQDO PDQGDWHV ZH XVH DQ DEXVH RI GLVFUHWLRQ 7KXV WKHUH LV QR FRQIOLFW WKDW ZRXOG UHTXLUH WKLV &RXUW WR VWDQGDUG6HH0LVVRXULYsHQNLQV86 GHWHUPLQHZKLFKSURYLVLRQPXVWSUHYDLOLQWKLVFDVH(YHQ TXRWLQJ)UHHPDQY3LWWV86 8QLWHG DVVXPLQJ WKHUH ZHUH LQ IDFW D FRQIOLFW mWKH UXOH RI FKDUWHU 6WDWHVY:7*UDQW&R86 8QGHU WKLV VWDQGDUG WKH PDJLVWUDWH MXGJHjV GHFLVLRQ WR UHWDLQ MXULVGLFWLRQ ZLOO EH GLVWXUEHG LI LW mUHOLHG XSRQ FOHDUO\ HUURQHRXVILQGLQJVRIIDFWLPSURSHUO\DSSOLHGWKHJRYHUQLQJ 7KH &LW\ VHHPV WR DUJXH WKDW WKH DEVHQFH IURP RI DQ\ ODZRUXVHGDQHUURQHRXVOHJDOVWDQGDUGl%OXH&URVV %OXH UHIHUHQFH WR DQ DWODUJH V\VWHP RI UHSUHVHQWDWLRQ LV HYLGHQFH WKDW WKH 2KLR
6KLHOG0XWRI2KLRY%OXH&URVV %OXH6KLHOG$VVjQ OHJLVODWXUH IDYRUHG H[FOXVLYH XVH RI D ZDUG V\VWHP 6XFK DQ
)G WK&LU ,QWKLVFDVHWKHPDJLVWUDWH LQWHUSUHWDWLRQ LI DFFHSWHG ZRXOG VWLOO FUHDWH QR FRQIOLFW EHWZHHQ LW DQG WKH
MXGJHUHWDLQHGMXULVGLFWLRQWRUHYLHZDQGDSSURYHWKH&LW\jV &KDUWHU DV WKH &KDUWHU LV VLOHQW RQ WKH TXHVWLRQ RI UHDSSRUWLRQPHQW )XUWKHUPRUH DV D SUDFWLFDO PDWWHU DQ DWODUJH V\VWHP RI UHSUHVHQWDWLRQ QHZ SODQ IRU UHDSSRUWLRQPHQW ZLWKRXW DQ\ IDFWXDO RU OHJDO ZRXOG QHYHU UHTXLUH UHDSSRUWLRQPHQW DV VXFK DQ\ VWDWXWRU\ SURYLVLRQ RQ MXVWLILFDWLRQ:HILQGWKDWWKLVIDLOXUHWRLQFOXGHDQ\VWDWHG WKH TXHVWLRQ RI UHDSSRUWLRQPHQW ZRXOG WKHUHIRUH EH ERWK XQQHFHVVDU\ DQG PHDQLQJOHVV 5HJHQVEXUJHUHWDOY&LW\RI 1R 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO %RZOLQJ*UHHQ2KLRHWDO
VXSUHPDF\ DSSOLHV RQO\ ZKHUH WKH FRQIOLFW DSSHDUV E\ WKH HVSHFLDOO\UHYHDOLQJLQOLJKWRIWKHRYHUZKHOPLQJDXWKRULW\WR H[SUHVV WHUPV RI WKH FKDUWHU DQG QRW E\ PHUH LQIHUHQFHl WKHFRQWUDU\6HHHJ0RUULV 86DW VXJJHVWLQJ /\QGKXUVW1(GDW HPSKDVLVDGGHG 7KH&LW\jV WKDW D GHYLDWLRQ FRXOG QHYHU EH MXVWLILHG &RQQRU Y DUJXPHQW QHFHVVDULO\ UHOLHV XSRQ LQIHUHQFH DQG PXVW EH )LQFK86 m7KHPD[LPXPSRSXODWLRQ UHMHFWHG GHYLDWLRQVRILQWKH6HQDWHGLVWULFWVDQG LQWKH +RXVH GLVWULFWVFDQKDUGO\EHFKDUDFWHUL]HGDVGHPLQLPLV %$W/DUJH(OHFWHG2IILFLDOV WKH\ VXEVWDQWLDOO\ H[FHHG WKH µXQGHUj GHYLDWLRQV WKH &RXUW KDV SUHYLRXVO\ FRQVLGHUHG WR EH RI SULPD IDFLH ,W LV ZHOOVHWWOHG WKDW ZKHQ H[DPLQLQJ OHJLVODWLYH FRQVWLWXWLRQDO YDOLGLW\ RQO\ LQ WKH FRQWH[W RI OHJLVODWLYHO\ UHGLVWULFWLQJ D UHYLHZLQJ FRXUW PXVW WDNH LQWR DFFRXQW WKH HQDFWHGDSSRUWLRQPHQWVl &KDSPDQ86DW m:H SUHVHQFHRIDWODUJHUHSUHVHQWDWLRQ6HH%RDUGRI(VWLPDWHRI EHOLHYH WKDW D SRSXODWLRQ GHYLDWLRQ RI WKDW PDJQLWXGH &LW\RI1HZ<RUNY0RUULV 86 7KH&LW\jV >@ LQ D FRXUWRUGHUHG SODQ LV FRQVWLWXWLRQDOO\ FRQWHQWLRQWKDWWKHPDJLVWUDWHMXGJHHUUHGLQIDLOLQJWRJLYH LPSHUPLVVLEOHLQWKHDEVHQFHRIVLJQLILFDQWVWDWHSROLFLHVRU GXH UHJDUG WR WKH &LW\jV DWODUJH DQG GLUHFW UHSUHVHQWDWLRQ RWKHUDFFHSWDEOHFRQVLGHUDWLRQVWKDWUHTXLUHDGRSWLRQRIDSODQ V\VWHP ILQGV QR VXSSRUW LQ WKH UHFRUG ,W LV FOHDU WKDW WKH ZLWK VR JUHDW D YDULDQFHl +RZHOO 86 DW PDJLVWUDWHMXGJHGLGFRQVLGHUWKHH[LVWHQFHRIWKH&LW\jVDW HPSKDVLVDGGHG QRWLQJWKDWDOWKRXJKmWKHRGGSHUFHQW ODUJHZDUGV\VWHPLQH[DPLQLQJWKHRYHUDOOYRWLQJVFKHPH PD[LPXPGHYLDWLRQWKDWWKH'LVWULFW&RXUWIRXQGWRH[LVWLQ 7KH PDJLVWUDWH MXGJH PDGH DQ H[SUHVV ILQGLQJ WKDW mD WKHOHJLVODWLYHSODQIRUWKHUHDSSRUWLRQPHQWRIWKH+RXVH GHYLDWLRQ DV KLJK DV LV QRW FRQVWLWXWLRQDOO\ PD\ ZHOO DSSURDFK WROHUDEOH OLPLWV ZH GR QRW EHOLHYH LW SHUPLVVLEOH HYHQ WKRXJK WKDW GHYLDWLRQ LV RIIVHW E\ WKH H[FHHGVWKHPl .LOJDUOLQY+LOO86 H[LVWHQFHRIWKUHHDWODUJHFRXQFLOSRVLWLRQVl m>,@WLVTXLWHFOHDUWKDWXQOHVVVDWLVIDFWRULO\MXVWLILHGE\WKH FRXUWRUE\WKHHYLGHQFHRIUHFRUGSRSXODWLRQYDULDQFHVRIWKH (YHQLIWKLV&RXUWZHUHLQFOLQHGWRORRNEH\RQGWKHSODLQ VL]HDQGVLJQLILFDQFHHYLGHQWKHUH>@DUHVXIILFLHQWWR ODQJXDJH RI WKH PDJLVWUDWH MXGJHjV RSLQLRQ ZH ZRXOG LQYDOLGDWHDQDSSRUWLRQPHQWSODQl 6ZDQQY$GDPV QHYHUWKHOHVV ILQG WKDW WKH GHYLDWLRQ LQ WKLV FDVH LV 86 m'H PLQLPLV GHYLDWLRQV DUH XQFRQVWLWXWLRQDO,Q0RUULVWKH6XSUHPH&RXUWKHOGWKDWLQ XQDYRLGDEOHEXWYDULDWLRQVRIDPRQJVHQDWHGLVWULFWVDQG GHWHUPLQLQJWKHGHYLDWLRQDPRQJGLVWULFWVWKHUHOHYDQWLQTXLU\ DPRQJKRXVHGLVWULFWVFDQKDUGO\EHGHHPHGGHPLQLPLV LVmZKHWKHUµWKHYRWHRIDQ\FLWL]HQLVDSSUR[LPDWHO\HTXDOLQ DQG QRQH RI RXU FDVHV VXJJHVWV WKDW GLIIHUHQFHV RI WKLV ZHLJKW WR WKDW RI DQ\ RWKHU FLWL]HQj WKH DLP EHLQJ WR PDJQLWXGHZLOOEHDSSURYHGZLWKRXWDVDWLVIDFWRU\H[SODQDWLRQ SURYLGHµIDLUDQGHIIHFWLYH UHSUHVHQWDWLRQIRUDOOFLWL]HQVjl JURXQGHGRQDFFHSWDEOHVWDWHSROLF\ $FFRUGLQJO\ZHILQG 86DW TXRWLQJ5H\QROGVY6LPV86 WKDW WKH PDJLVWUDWH MXGJH SURSHUO\ FRQFOXGHG WKDW WKH $OWKRXJKWKH0RUULV&RXUWFRQFOXGHGWKDWWKHORZHU SRSXODWLRQGHYLDWLRQH[FHHGHGFRQVWLWXWLRQDOOLPLWV FRXUWVHUUHGLQIDLOLQJWRGHWHUPLQHWKHGHYLDWLRQIURPLGHDO ZLWKWKHDWODUJHUHSUHVHQWDWLRQIDFWRUHGLQWRWKHDQDO\VLVLW )sXULVGLFWLRQ UHIXVHGWRILQGUHYHUVLEOHHUURUEHFDXVHWKHFLW\KDGFRQFHGHG DSRSXODWLRQGHYLDWLRQRI6HHLGDW 8SRQ GHWHUPLQLQJ WKDW WKH &LW\jV YRWLQJ DSSRUWLRQPHQW VFKHPH ZDV XQFRQVWLWXWLRQDO WKH PDJLVWUDWH MXGJH VWUXFN ,QWKHLQVWDQWFDVHWKHPDJLVWUDWHMXGJHIRXQGmDGHYLDWLRQ GRZQWKHVFKHPHDQGRUGHUHGWKH&LW\WRGHYHORSDQGVXEPLW DV KLJK DV l 7KH &LW\ GRHV QRW DVVHUW WKDW WKH WR WKH FRXUW IRU LWV UHYLHZ DQG DSSURYDO D FRQVWLWXWLRQDOO\ 5HJHQVEXUJHUHWDOY&LW\RI 1R 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO %RZOLQJ*UHHQ2KLRHWDO
SRSXODWLRQ GHYLDWLRQV 5DWKHU LW DGGUHVVHG ZKHWKHU PDJLVWUDWHMXGJHIDLOHGWRFDOFXODWHWKHGHYLDWLRQIURPLGHDO :\RPLQJjV SODQ IRU SUHVHUYLQJ ERXQGDULHV MXVWLILHG WKH QRUGRHVLWDVVHUWWKDWWKHGHYLDWLRQVIRXQGE\WKHPDJLVWUDWH DGGLWLRQDOGHYLDWLRQVIURPSRSXODWLRQHTXDOLW\UHVXOWLQJIURP MXGJH ZHUH ZLWKLQ SHU VH FRQVWLWXWLRQDO OLPLWV ,W FDQQRW D SDUWLFXODU FRXQW\jV UHSUHVHQWDWLRQ IRFXVLQJ RQ WKH (YHQ DVVXPLQJ WKH PDJLVWUDWH MXGJH IDLOHG WR FRQVLGHU WKH DSSHOODQWVj FKDOOHQJH WR UHSUHVHQWDWLRQ RI WKDW SDUWLFXODU SUHVHQFH RI DWODUJH UHSUHVHQWDWLRQ LQ WKH &LW\ WKH 8QLWHG FRXQW\DQGQRWRQWKHGHYLDWLRQVIURPLGHDO6HHLGDW 6WDWHV6XSUHPH&RXUWKDVVXJJHVWHGWKDWDGHYLDWLRQDVKLJK 7KH%URZQ&RXUWVWDWHG DVWKDWDWLVVXHLQWKLVFDVHPLJKWEHSHUVHXQFRQVWLWXWLRQDO &ILGDW m:HQRWHWKDWQRFDVHRIRXUVKDVLQGLFDWHGWKDW +HUHZHDUHQRWUHTXLUHGWRGHFLGHZKHWKHU:\RPLQJ V DGHYLDWLRQRIVRPHFRXOGHYHUEHMXVWLILHGl *LYHQWKH QRQGLVFULPLQDWRU\ DGKHUHQFH WR FRXQW\ ERXQGDULHV HYLGHQFHWKDWWKHPDJLVWUDWHMXGJHGLGFRQVLGHUWKHDWODUJH MXVWLILHVWKHSRSXODWLRQGHYLDWLRQVWKDWH[LVWWKURXJKRXW V\VWHPLQFDOFXODWLQJWKHSRSXODWLRQGHYLDWLRQIURPLGHDODQG :\RPLQJ V UHSUHVHQWDWLYH GLVWULFWV $SSHOODQWV JLYHQWKH&LW\jVIDLOXUHWRVKRZWKDWWKLVILJXUHLVLQDFFXUDWH GHOLEHUDWHO\KDYHOLPLWHGWKHLUFKDOOHQJHWRWKHDOOHJHG ZH FRQFOXGH WKDW WKH PDJLVWUDWH MXGJHj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m+8'l SRSXODWLRQ HVWLPDWHV DV DGGLWLRQDOGHYLDWLRQVIURPSRSXODWLRQHTXDOLW\UHVXOWLQJ mXQVXSSRUWHGE\VXIILFLHQWIDFWVl8VHRIWKH+8'HVWLPDWHV IURPWKHSURYLVLRQRIUHSUHVHQWDWLRQWR1LREUDUD&RXQW\ WKH &LW\ DUJXHV ZRXOG KDYH UHVXOWHG LQ D FRQVWLWXWLRQDOO\ SHUPLVVLEOH GHYLDWLRQ RI 7KH &LW\j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jVGHWHUPLQDWLRQZDVFOHDUO\HUURQHRXVSDUWLFXODUO\LQ GHYLDWLRQVIURPLGHDOnZKLOHQRWGLVSRVLWLYHnDUHLPSRUWDQW OLJKWRIWKHIDFWWKDWXQOLNHWKDWRIWKH+8'HVWLPDWHVWKHUH LQ GHWHUPLQLQJ ZKHWKHU WKH FKDOOHQJHG OHJLVODWLYH SODQ ZDV QR TXHVWLRQ DV WR WKH DFFXUDF\ RI WKH &HQVXV FRPSOLHV ZLWK WKH (TXDO 3URWHFWLRQ &ODXVH 6HH HJ ILJXUHVWRZKLFKHYHQWKH&LW\VWLSXODWHG &KDSPDQY0HLHU86 LQWHUQDOFLWDWLRQ DQG TXRWDWLRQ PDUNV RPLWWHG m:KLOH P DWKHPDWLFDO '3RSXODWLRQ%DVH H[DFWQHVV RU SUHFLVLRQ LV QRW UHTXLUHG WKHUH PXVW EH VXEVWDQWLDOFRPSOLDQFHZLWKWKHJRDORISRSXODWLRQHTXDOLW\l $OWKRXJKWKHPDJLVWUDWHMXGJHIRXQGWKDWWKH&LW\jVV\VWHP 7KH&LW\jVIDLOXUHWRFLWHHYHQRQHFDVHLQZKLFKDUHYLHZLQJ RI FRXQWLQJ :DUG UHVLGHQWV ZDV UDWLRQDOnD SRLQW WKDW FRXUWKDVXSKHOGDSRSXODWLRQGHYLDWLRQDVKLJKDVLV QHLWKHU SDUW\ GLVSXWHVnVKH FRQFOXGHG WKDW m>J@LYHQ WKDW 5HJHQVEXUJHUHWDOY&LW\RI 1R 1R 5HJHQVEXUJHUHWDOY&LW\RI %RZOLQJ*UHHQ2KLRHWDO %RZOLQJ*UHHQ2KLRHWDO
HLWKHU PHWKRG RI FDOFXODWLQJ SRSXODWLRQ GHYLDWLRQ H[FHHGV mUDWLRQDOVWDWHSROLF\lWKDWPD\MXVWLI\WKHGHYLDWLRQ WR FRQVWLWXWLRQDO OLPLWV WKH FRXUW GHWHUPLQHV WKDW LW LV H[SODLQKRZWKHDSSRUWLRQPHQWSODQmPD\UHDVRQDEO\EHVDLG XQQHFHVVDU\ WR UHDFK WKH LVVXH RI ZKHWKHU WKH UHGXFWLRQ RI WRDGYDQFHlWKHUDWLRQDOVWDWHSROLF\ DQG WRGHPRQVWUDWH SRSXODWLRQ E\ UHJLVWHUHG YRWHUV LQ RQO\ RQH ZDUG LV DQ WKDWWKHUHVXOWLQJGHYLDWLRQGRHVQRWmH[FHHGFRQVWLWXWLRQDO DFFHSWDEOH PHWKRG RI FDOFXODWLQJ SRSXODWLRQl 0RUH OLPLWVl0DKDQY+RZHOO86 DFFRUG LPSRUWDQWLQVWULNLQJGRZQWKH&LW\jVDSSRUWLRQPHQWVFKHPH 4XLOWHU 86 DW :KLOH LW LV WUXH WKDW WKH WKH PDJLVWUDWH MXGJH SURSHUO\ UHIXVHG WR VWDWH ZKHWKHU LQ PDJLVWUDWH MXGJH IRXQG WKDW WKH &LW\jV SURIIHUHG GHYHORSLQJ D UHDSSRUWLRQPHQW VFKHPH WKH &LW\ ZRXOG EH MXVWLILFDWLRQnPDLQWHQDQFH RI mWKH HIILFLHQW DQG HFRQRPLF UHTXLUHG WR UHO\ XSRQ WKH &HQVXV ILJXUHV RU WKH UHJLVWHUHG GHOLYHU\RIFLW\VHUYLFHVLQ%RZOLQJ*UHHQlnZDVDUDWLRQDO YRWHUDGMXVWHG ILJXUHV 6XFK D TXHVWLRQ ZDV QRW SURSHUO\ VWDWHSROLF\DQGWKDWWKH&LW\j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jV OHJLVODWLYH SODQ ZDV WK &LU >7@KH FRXUW GRHV QRW UHQGHU XQFRQVWLWXWLRQDODIWHUILUVWILQGLQJWKDWWKHPXQLFLSDOSROLFLHV DGYLVRU\ RSLQLRQV RU GHFLGH DEVWUDFW SURSRVLWLRQV XQGHUO\LQJWKHVFKHPHZHUHUDWLRQDODQGMXVWLILHG7KH&LW\ 0LQQHVRWDY8QLWHG6WDWHV6WHHO&RUS)G GRHV QRW GLVSXWH WKH DFFXUDF\ RI WKH PDJLVWUDWH MXGJHjV WK&LU 7KHOHJDOTXHVWLRQVVKRXOGQRWEHFRQVLGHUHG ILQGLQJRIDSRSXODWLRQGHYLDWLRQRI5DWKHULWVHHPV LQWKHDEVWUDFW WR DUJXH WKDW D SROLF\ WKDW LV VKRZQ WR EH UDWLRQDO DQG DGYDQFHG E\ D PXQLFLSDOLW\j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jV DUJXPHQW WKDW LW VKRXOG EH SHUPLWWHG WR UHO\ XSRQ SRSXODWLRQGHYLDWLRQVWKDWH[FHHGFRQVWLWXWLRQDOOLPLWV WKH &HQVXVEDVHG SRSXODWLRQ QXPEHUV IRU DOO SDUWV RI WKH FLW\ H[FHSW 3UHFLQFW & ZKHUH LW ZRXOG VXEVWLWXWH WKH QXPEHU RI UHJLVWHUHG YRWHUV 7KH&LW\jVUHOLDQFHRQ%URZQY7KRPVRQ86 6XFK D SURSRVLWLRQ ILQGV QR VXSSRUW LQ WKH ODZ DQG ZRXOG YLRODWH WKH WRVXSSRUWLWVDUJXPHQWLVPLVSODFHG%URZQQHYHU ILUPO\ HVWDEOLVKHG mRQH SHUVRQRQH YRWHl SULQFLSOH LQ WKH PRVW OLWHUDO GHDOW ZLWK WKH TXHVWLRQ RI FRQVWLWXWLRQDOO\ SHUPLVVLEOH VHQVH
Reference
- Status
- Published