Cotter v. Ajilon Service, Inc.
Cotter v. Ajilon Service, Inc.
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
*(5$5' &277(5 ; 3ODLQWLII$SSHOODQW 1R Y ! $s,/21 6(59,&(6 ,1& 'HIHQGDQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1R n$YHUQ&RKQ6HQLRU'LVWULFWsXGJH $UJXHGDQG6XEPLWWHG 0DUFK 'HFLGHGDQG)LOHG $SULO %HIRUH 6,/(5DQG*,/0$1&LUFXLWsXGJHV +(<%851 &KLHI'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8(' 9LUJLQLD ) 0HW] 9(5&58<66( 0(7= 0855$< %LQJKDP )DUPV 0LFKLJDQ IRU $SSHOOHH 21%5,() &KULVWRSKHU(0HQJHO%(5./(<0(1*(/
7KH +RQRUDEOH sRKQ * +H\EXUQ ,, &KLHI 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ
&RWWHUY$MLORQ6HUYV,QF 1R 1R &RWWHUY$MLORQ6HUYV,QF
9,1,1* 'HWURLW 0LFKLJDQ IRU $SSHOODQW 9LUJLQLD ) WRDWHUPLQDWLRQVWDWXV>"@36o%DFN&DVHl,GDW7KH 0HW] 9(5&58<66( 0(7= 0855$< %LQJKDP &RXUW UHYHUVHG VXPPDU\ MXGJPHQW FRQFOXGLQJ WKDW D )DUPV0LFKLJDQIRU$SSHOOHH UHDVRQDEOHMXU\PLJKWILQGWKDWWKHHPSOR\HUjVWUXHPRWLYHIRU WHUPLQDWLQJ5RVVKDGEHHQGLVFULPLQDWRU\ BBBBBBBBBBBBBBBBB :HDJUHHZLWKWKH5RVVSDQHOjVREVHUYDWLRQRIWKHVWHHS 23,1,21 FKDOOHQJH D SODLQWLII IDFHV LQ SURYLQJ WKDW KLV HPSOR\HU BBBBBBBBBBBBBBBBB UHJDUGHGKLPDVVXEVWDQWLDOO\OLPLWHGLQZRUNLQJ+RZHYHU WKHIDFWVLQ5RVVVKDUSO\FRQWUDVWZLWKWKRVHLQWKLVFDVH,Q +(<%851 &KLHI 'LVWULFW sXGJH 3ODLQWLIIDSSHOODQW 5RVV WKHUH ZDV VXEVWDQWLDO HYLGHQFH WKDW WKH SODLQWLIIjV *HUDUG &RWWHU ILOHG FODLPV DJDLQVW KLV IRUPHU HPSOR\HU PHGLFDO VWDWXV VLJQLILFDQWO\ LQIOXHQFHG KLV HPSOR\HUjV $MLORQ6HUYLFHV,QF m$MLORQl XQGHUWKHIHGHUDO$PHULFDQV GHFLVLRQWRWHUPLQDWHKLP KHUHWKHHYLGHQFHLVLQVXEVWDQWLDO ZLWK'LVDELOLWLHV$FW m$'$l 86&HWVHT DQGFHUWDLQO\IDUOHVVFRPSHOOLQJWKDQLQ5RVV7KHUHFRUG DQG 0LFKLJDQjV 3HUVRQV ZLWK 'LVDELOLWLHV &LYLO 5LJKWV $FW LQGLFDWHVWKDW$MLORQDWWHPSWHGWRPDUNHW&RWWHUWRDFOLHQWLQ m3:'&5$l 0LFK&RPS/DZVHWVHTZKLFK ODWH)HEUXDU\ DIDFWZKLFKPLWLJDWHVDJDLQVWDILQGLQJ VXEVWDQWLDOO\UHVHPEOHVWKH$'$7KHGLVWULFWFRXUWILQGLQJ WKDW$MLORQUHJDUGHGKLPDVVXEVWDQWLDOO\OLPLWHGLQZRUNLQJ WKDW &RWWHU IDLOHG WR SURYLGH HYLGHQFH VXIILFLHQW WR UDLVH D )XUWKHU $MLORQ RIIHUHG HYLGHQFH WKDW LW OHW WKLUW\RQH RWKHU JHQXLQH LVVXH RI PDWHULDO IDFW WKDW KH HLWKHU ZDV DFWXDOO\ HPSOR\HHV JR EHWZHHQ s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mWHPSVHUYLFHVlWKHFOLHQW HPSOR\HU SD\V $MLORQ DQG $MLORQ SD\V WKH HPSOR\HH KRZHYHU$MLORQSD\VLWVHPSOR\HHVZKHWKHUWKH\DUHSODFHG ZLWKDQGZRUNLQJIRUDFOLHQWoWKXVJHQHUDWLQJUHYHQXHVIRU $MLORQoRUQRW$MLORQSODFHG&RWWHUZLWK%OXH&URVV%OXH 6KLHOG&RWWHUZRUNHGIXOOWLPHZLWKRFFDVLRQDORYHUWLPH ,Q WKH DXWXPQ RI D GRFWRU GLDJQRVHG &RWWHU ZLWK XOFHUDWLYHFROLWLV8OFHUDWLYHFROLWLV KHUHLQDIWHUmFROLWLVl LV DQLQWHVWLQDODLOPHQWZKLFKKDVQRNQRZQFXUHEXWPD\EH FRQWUROOHG E\ PHGLFDWLRQ D SURSHU GLHW H[HUFLVH DQG HVLGHV WKH m%DFN &DVHl PHPR 5RVV LQWURGXFHG HYLGHQFH WKDW
DGHTXDWH UHVW 7KH GRFWRU UHFRPPHQGHG WR &RWWHU WKDW KH DIWHU KLV ILIWK EDFN LQMXU\ KLV VXSHUYLVRUV VXJJHVWHG WKDW KH ILQG ZRUN
OLPLWRYHUWLPHZRUN&RWWHUQRWLILHGKLVVXSHUYLVRU&KDUOHV HOVHZKHUH DQG WKDW DIWHU 5RVV GHFOLQHG WKH\ SODFHG KLP RQ SUREDWLRQ
%DFKOHGDRIWKHUHFRPPHQGDWLRQDQG%DFKOHGDWRRNKLPRII JDYH KLP D VKDUSO\ QHJDWLYH MRE SHUIRUPDQFH UHYLHZ DQG DVVLJQHG KLP VLJQLILFDQWO\ KLJKHU VDOHV TXRWDV ,G DW &RWWHUY$MLORQ6HUYV,QF 1R 1R &RWWHUY$MLORQ6HUYV,QF
EHFRPHV D TXHVWLRQ RI >WKH HPSOR\HUjV@ LQWHQWl WKH SDQHO RYHUWLPHDW%OXH&URVV,Q$XJXVW &RWWHUVXEPLWWHGD REVHUYHG WKDW WKH TXHVWLRQ RI DQ HPSOR\HUjV PRWLYH LV RQH OHWWHURIUHVLJQDWLRQLQRUGHUWRDFFHSWDEHWWHUSD\LQJMREEXW mUDUHO\ VXVFHSWLEOH WR UHVROXWLRQ DW WKH VXPPDU\ MXGJPHQW $MLORQRIIHUHGWRWRSLWVFRPSHWLWRUjVRIIHUDQG&RWWHUFKRVH VWDJHl,GDW WRVWD\ 5RVVUHFRJQL]HGWKHGLIILFXOW\DSODLQWLIIIDFHVLQSURYLQJ ,Q 1RYHPEHU %DFKOHGD WROG &RWWHU WR WDNH RQ WKDW KLV HPSOR\HU UHJDUGHG KLP DV VXEVWDQWLDOO\ OLPLWHG LQ FRQWLQXRXVRYHUWLPHZRUNZLWKWKH&KU\VOHU&RUSRUDWLRQDQG ZRUNLQJ WKUHDWHQHG WKDW $MLORQ ZRXOG WHUPLQDWH KLP LI KH GLG QRW DFFHSWWKHDGGLWLRQDOZRUN&RWWHUWULHGWRJRDERYH%DFKOHGD 3URYLQJWKDWDQHPSOR\HHLVUHJDUGHGDVGLVDEOHGLQWKH LQ$MLORQjVFKDLQRIFRPPDQGIRUSHUPLVVLRQWRUHIXVHWKH PDMRU OLIH DFWLYLW\ RI ZRUNLQJ WDNHV D SODLQWLII WR WKH RYHUWLPH 8QVXFFHVVIXO &RWWHU VWDUWHG ZRUNLQJ VL[WHHQ WR IDUWKHVWUHDFKHVRIWKH$'$,WLVDTXHVWLRQHPEHGGHG WZHQW\KRXUVRYHUWLPHZLWK&KU\VOHU DOPRVW HQWLUHO\ LQ WKH HPSOR\HUj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jVWDVNEHFRPHVHYHQPRUH GLIILFXOW<HWWKHGUDIWHUVRIWKH$'$DQGLWVVXEVHTXHQW &RWWHU UHWXUQHG IURP OHDYH LQ sXQH XQGHU PHGLFDO LQWHUSUHWLYH UHJXODWLRQV FOHDUO\ LQWHQGHG WKDW SODLQWLIIV DGYLFHWKDWKHWDNHDZDONRIXSWRILIWHHQPLQXWHVj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jV LQGLYLGXDOjVPHGLFDOVWDWXVSOD\HGDVLJQLILFDQWUROHLQDQ SV\FKLDWULVWUHFRPPHQGHGWKDW&RWWHUWDNHWZRZHHNVRIVLFN HPSOR\HUjV GHFLVLRQ WR ILUH WKDW LQGLYLGXDO FRPELQHG OHDYH ZKLFK KH GLG WKRXJK KH GLG QRW DWWHQG WKH FOLQLF ZLWKHYLGHQFHWKDWWKHHPSOR\HUFRQFRFWHGDSUHWH[WXDO &RWWHU VXIIHUHG DQRWKHU IODUHXS GXULQJ KLV OHDYH DQG MXVWLILFDWLRQIRUWKDWILULQJWKHQHHGIRUPRUHH[WHQVLYH H[WHQGHGKLVOHDYHXQWLO1RYHPEHU 'XULQJWKLVWLPHLQ IDFWXDO LQTXLU\ LQWR ZKHWKHU WKH HPSOR\HU HQJDJHG LQ HDUO\ 6HSWHPEHU $MLORQ FRQWDFWHG &RWWHU ZLWK DQ RIIHU WR XQODZIXOGLVFULPLQDWLRQLVHVSHFLDOO\DFXWH ZRUN IRU D FOLHQW LQ sDFNVRQYLOOH )ORULGD ZKLFK &RWWHU UHMHFWHG:KLOHRQOHDYH&RWWHUUHFHLYHGGLVDELOLW\SD\IURP ,GDW $PRQJWKHVXEVWDQWLDOHYLGHQFHUHIHUUHGWRZDVDQ $MLORQ LQWHURIILFH PDQDJHULDO PHPR LQ ZKLFK RQH RI 5RVVjV VXSHUYLVRUVDVNHGm:KHQFDQZHEULQJWKLVSUREOHPSHUVRQ ,Q 1RYHPEHU XSRQ FOHDUDQFH IURP D SK\VLFLDQ WR ZRUN SDUWWLPH&RWWHUSXWLQDUHTXHVWWR%DFKOHGDZKRWROGKLP &RWWHUY$MLORQ6HUYV,QF 1R 1R &RWWHUY$MLORQ6HUYV,QF
QRSDUWWLPHZRUNZDVDYDLODEOH,QPLG'HFHPEHU&RWWHU DOOHJHWKH\DUH>UHJDUGHGDV@XQDEOHWRZRUNLQDEURDGFODVV VDLGWKDWKHZDVILWIRUIXOOWLPHZRUNDQG%DFKOHGDDGYLVHG RIMREVl,GDW &)5 M L $QHPSOR\HU KLPWKDWQRZRUNZRXOGEHDYDLODEOHXQWLODIWHUWKHKROLGD\V GRHVQRWQHFHVVDULO\UHJDUGDQHPSOR\HHDVGLVDEOHGmVLPSO\ E\ ILQGLQJ WKH HPSOR\HH WR EH LQFDSDEOH RI VDWLVI\LQJ WKH 2Q)HEUXDU\ $MLORQUHWXUQHG&RWWHUWRIXOOSD\ VLQJXODUGHPDQGVRIDSDUWLFXODUMREl.RFVLVY0XOWL&DUH %DFKOHGDSURPLVHGWRWU\WRILQGZRUNIRU&RWWHUEXWWROGKLP 0DQDJHPHQW ,QF )G WK &LU QRWWRFRPHLQWRWKHRIILFHORRNLQJIRUZRUN2Q)HEUXDU\ TXRWDWLRQ PDUNV DQG FLWDWLRQ RPLWWHG 6HH DOVR &KLOHV $MLORQWHUPLQDWHG&RWWHUjVHPSOR\PHQWHIIHFWLYH0DUFK VXSUD1:GDW XQGHU3:'&5$mWKHLQDELOLW\ 7KHVWDWHGUHDVRQLQ$MLORQjVUHFRUGVLVmODFNRIZRUNl WRSHUIRUPDSDUWLFXODUMREGRHVQRWFRQVWLWXWHDVXEVWDQWLDO OLPLWDWLRQ,QVWHDGWKHLPSDLUPHQWPXVWVLJQLILFDQWO\UHVWULFW $MLORQ FODLPV WKDW LW XVXDOO\ NHHSV DQ HPSOR\HH mRQ WKH DQ LQGLYLGXDOjV DELOLW\ WR SHUIRUP DW OHDVW D ZLGH UDQJH RI EHQFKloSDLGDWWKHUHJXODUVDODU\WKRXJKQRWZRUNLQJoIRU MREVl HPSKDVLVLQRULJLQDO FLWDWLRQVRPLWWHG DPD[LPXPRIIRXUZHHNV EXW WKDWLQVSLWHRIUHDVRQDEOH HIIRUWVRYHUVL[ZHHNVWRSODFH&RWWHUZLWKDFOLHQWHPSOR\HU 7KH GLVWULFW FRXUW GLVPLVVHG &RWWHUjV UHJDUGHGDV FODLP LWZDVXQDEOHWRGRVRDQGFRQVHTXHQWO\KDGWRWHUPLQDWHKLP VWDWLQJWKDWKHKDGQRWRIIHUHGVXIILFLHQWHYLGHQFHWRUDLVHD &RWWHUFODLPVWKDWKHLVGLVDEOHG DOWHUQDWLYHO\KHDUJXHVWKDW JHQXLQHLVVXHRIPDWHULDOIDFWDVWRZKHWKHU$MLORQEHOLHYHG $MLORQPLVWDNHQO\UHJDUGHGKLPDVVXEVWDQWLDOO\OLPLWHGLQWKH FROLWLVVLJQLILFDQWO\UHVWULFWHGKLPIURPSHUIRUPLQJDFODVVRU DELOLW\ WR ZRUN DQG FRQVHTXHQWO\ IDLOHG WR PDUNHW KLP EURDG UDQJH RI MREV $WWHPSWLQJ WR HVWDEOLVK WKDW $MLORQjV DJJUHVVLYHO\WRFOLHQWHPSOR\HUV GHIHQVH o WKDW QR FOLHQW HPSOR\HU FKRVH &RWWHU GHVSLWH $MLORQjV UHDVRQDEOH JRRGIDLWK HIIRUW WR SODFH KLP o LV D ,, SUHWH[W&RWWHUFODLPVWKDW%DFKOHGDUHIXVHGKLPUHDVRQDEOH DFFRPPRGDWLRQVDQGWKUHDWHQHGWKDW$MLORQZRXOGGLVPLVV 7KLV &RXUW UHYLHZV D GLVWULFW FRXUWjV JUDQW RI VXPPDU\ KLP LI KH HYHU ZHQW RQ GLVDELOLW\ OHDYH DJDLQ &RWWHU DOVR MXGJPHQWGHQRYRDQGDIILUPVVXFKDMXGJPHQWRQO\LIWKHUH RIIHUV$MLORQUHFRUGVZKLFKLQGLFDWHWKDWZKLOH&RWWHUZDV LVQRJHQXLQHLVVXHRIPDWHULDOIDFWDQGWKHPRYDQWLVHQWLWOHG mRQ WKH EHQFKl LQ HDUO\ $MLORQ UHFHLYHG RYHU WKUHH WRMXGJPHQWDVDPDWWHURIODZ7KH&RXUWVKRXOGEHOLHYHWKH KXQGUHGUHTXHVWVIURPFOLHQWVIRUHPSOR\HHSODFHPHQWDQG HYLGHQFHSUHVHQWHGE\WKHQRQPRYDQWDQGGUDZDOOMXVWLILDEOH SODFHGRYHURQHKXQGUHGHPSOR\HHVGXULQJWKLVWLPH LQIHUHQFHVLQKLVIDYRU3ODQWY0RUWRQ,QWHUQDWLRQDO,QF )G WK&LU &RWWHUjV DUJXPHQW FHQWHUV DURXQG RXU UHFHQW GHFLVLRQ LQ 5RVVY&DPSEHOO6RXS&R)G WK&LU LQ ,,, ZKLFKZHKHOGWKDWLWLVJHQHUDOO\DMXU\TXHVWLRQZKHWKHUD SHUFHLYHGFODVVRIMREVLVVXEVWDQWLDOHQRXJKWRTXDOLI\DVD 7KH$'$ SURKLELWVFRYHUHGHQWLWLHVIURPGLVFULPLQDWLQJ mEURDG FODVVl XQGHU 6XWWRQ ,Q 5RVV &DPSEHOO 6RXS DJDLQVW TXDOLILHG LQGLYLGXDOV ZLWK D GLVDELOLW\ 7KH $'$ &RPSDQ\ WHUPLQDWHG D VDOHV HPSOR\HH ZKR IUHTXHQWO\ GHILQHV D mTXDOLILHG LQGLYLGXDO ZLWK D GLVDELOLW\l DV mDQ H[SHULHQFHGVHYHUHEDFNSDLQ7KHSODLQWLIIDOOHJHGWKDWKLV LQGLYLGXDOZLWKDGLVDELOLW\ZKRZLWKRUZLWKRXWUHDVRQDEOH HPSOR\HU KDG PLVWDNHQO\ UHJDUGHG KLP DV VXEVWDQWLDOO\ DFFRPPRGDWLRQFDQSHUIRUPWKHHVVHQWLDOIXQFWLRQVRIWKH OLPLWHGLQWKHDELOLW\WRZRUN7KHHPSOR\HUFRXQWHUHGWKDWLW HPSOR\PHQWSRVLWLRQWKDWVXFKLQGLYLGXDOKROGVRUGHVLUHVl KDG GLVFKDUJHG 5RVV EHFDXVH KH KDG H[DJJHUDWHG KLV 86& ,QWXUQWKH$'$GHILQHVmGLVDELOLW\l FRQGLWLRQDQGPLVXVHGKLVVLFNOHDYH1RWLQJWKDWXQGHUWKH DVIROORZV $'$jVUHJDUGHGDVSURQJmPHPEHUVKLSLQWKHSURWHFWHGFODVV &RWWHUY$MLORQ6HUYV,QF 1R 1R &RWWHUY$MLORQ6HUYV,QF
LQDELOLW\WRZRUNRYHUWLPHLVQRWDVXEVWDQWLDOOLPLWDWLRQRQ $ DSK\VLFDORUPHQWDOLPSDLUPHQWWKDWVXEVWDQWLDOO\ WKHDELOLW\WRZRUN6HHHJ/LQVHUY2KLR'HSWRI0HQWDO OLPLWV RQH RU PRUH RI WKH PDMRU OLIH DFWLYLWLHV RI VXFK +HDOWK1R 86$SS/(;,6DW LQGLYLGXDO WK &LU 2FW LQDELOLW\ WR ZRUN PRUH WKDQ IRUW\ % DUHFRUGRIVXFKDQLPSDLUPHQW RU KRXUVSHUZHHNLVQRWDVXEVWDQWLDOOLPLWDWLRQRQWKHDELOLW\WR & EHLQJUHJDUGHGDVKDYLQJVXFKDQLPSDLUPHQW ZRUN 9RQGHUKHLGH Y 8QLWHG 6WDWHV 3RVW 2IILFH 1R 86$SS/(;,6DW WK&LUsXO\ 86& (TXDO (PSOR\PHQW 2SSRUWXQLW\ VDPH 5XWOLQY3ULPH6XFFHVVLRQ,QF)6XSS &RPPLVVLRQ m((2&l JXLGHOLQHV GHILQH WKH SKUDVH G :'0LFK VDPH 0XWKOHUY$QQ$UERU mVXEVWDQWLDOO\OLPLWVlDVIROORZV 0DFKLQH,QF)6XSSG ('0LFK VDPH $OVRVHH'RUHQY%DWWOH&UHHN+HDOWK6\V)G L 8QDEOH WR SHUIRUP D PDMRU OLIH DFWLYLW\ WKDW WKH WK&LU DYHUDJHSHUVRQLQWKHJHQHUDOSRSXODWLRQFDQSHUIRUP RU LL 6LJQLILFDQWO\UHVWULFWHGDVWRWKHFRQGLWLRQPDQQHURU 4XLWHVLPSO\WKHHYLGHQFHSUHFOXGHVDILQGLQJWKDW&RWWHUjV GXUDWLRQ XQGHU ZKLFK DQ LQGLYLGXDO FDQ SHUIRUP D SK\VLFDOLPSDLUPHQWVXEVWDQWLDOO\OLPLWVDPDMRUOLIHDFWLYLW\ SDUWLFXODU PDMRU OLIH DFWLYLW\ DV FRPSDUHG WR WKH FRQGLWLRQPDQQHURUGXUDWLRQXQGHUZKLFKWKHDYHUDJH % SHUVRQLQWKHJHQHUDOSRSXODWLRQFDQSHUIRUPWKDWVDPH PDMRUOLIHDFWLYLW\ &RWWHUDOVRDSSHDOVWKHGLVWULFWFRXUWj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o LW PXVW EHOLHYH HLWKHUWKDWRQHKDVDVXEVWDQWLDOO\OLPLWLQJLPSDLUPHQW WKDW RQH GRHV QRW KDYH RU WKDW RQH KDV D VXEVWDQWLDOO\ OLPLWLQJLPSDLUPHQWZKHQLQIDFWWKHLPSDLUPHQWLVQRW VROLPLWLQJ 86DW :KHQDVKHUHmWKHPDMRUOLIHDFWLYLW\XQGHU FRQVLGHUDWLRQ LV WKDW RI ZRUNLQJ WKH VWDWXWRU\ SKUDVH &RWWHU GRHV QRW DOOHJH XQGHU 86& % WKDW $MLORQ µVXEVWDQWLDOO\OLPLWVjUHTXLUHVDWDPLQLPXPWKDWSODLQWLIIV GLVFULPLQDWHG DJDLQVW KLP EHFDXVH KH KDV D UHFRUG RI DQ LPSDLUPHQW &RWWHUY$MLORQ6HUYV,QF 1R 1R &RWWHUY$MLORQ6HUYV,QF
0LFKLJDQjV 3HUVRQV ZLWK 'LVDELOLWLHV &LYLO 5LJKWV $FW ,QKLVFRPSODLQW&RWWHUDOOHJHGZLWKRXWHODERUDWLQJWKDW VXEVWDQWLDOO\PLUURUVWKH$'$DQGUHVROXWLRQRIDSODLQWLIIjV KLVFROLWLVmVXEVWDQWLDOO\OLPLWVPDMRUOLIHDFWLYLWLHVl,QDQ $'$ FODLP ZLOO JHQHUDOO\ WKRXJK QRW DOZD\V UHVROYH WKH DIILGDYLWILOHGDIWHU$MLORQjVPRWLRQIRUVXPPDU\MXGJPHQW SODLQWLIIjV3:'&5$FODLP&DVVLG\Y'HWURLW(GLVRQ&R &RWWHUFODLPHGWKDWKLVFROLWLVUHVWULFWVKLVDELOLW\WRSHUIRUP )G Q WK &LU &KLOHV Y 0DFKLQH PDQXDOWDVNVVXFKDVOLIWLQJEHQGLQJVWDQGLQJDQGFDUU\LQJ 6KRS,QF1:G 0LFK&W$SS WKLQJV $SDUW IURP WKLV SHUIXQFWRU\ VWDWHPHQW KRZHYHU &RWWHU RIIHUHG QR HYLGHQFH IURP ZKLFK D UHDVRQDEOH MXU\ 7RVWDWHDFODLPXQGHUWKH$'$DSODLQWLIIPXVWHVWDEOLVK FRXOGLQIHUWKDWKLVGLJHVWLYHDLOPHQWVXEVWDQWLDOO\OLPLWVWKHVH WKDW m KH LV DQ LQGLYLGXDO ZLWK D GLVDELOLW\ KH LV PDMRUOLIHDFWLYLWLHV$VZHKDYHKHOGm>D@VLQJOHFRQFOXVRU\ µRWKHUZLVHTXDOLILHGjWRSHUIRUPWKHMREUHTXLUHPHQWVZLWKRU VWDWHPHQWDERXWDQDOOHJHGVXEVWDQWLDOOLPLWDWLRQLVQRWHQRXJK ZLWKRXWUHDVRQDEOHDFFRPPRGDWLRQ DQG KHZDVGLVFKDUJHG WR DYRLG VXPPDU\ MXGJPHQW VRXJKW E\ WKH HPSOR\HUl VROHO\E\UHDVRQRIKLVKDQGLFDSl0RQHWWHY(OHFWURQLF'DWD $QGHUVRQY,QODQG3DSHUERDUG 3DFNDJLQJ,QF1R 6\V&RUS )G WK&LU 7KHLVVXH 86$SS/(;,6DW WK&LU$SU EHIRUHXVLVZKHWKHU&RWWHULVGLVDEOHGZLWKLQWKHPHDQLQJRI &I3HQQ\Y8QLWHG3DUFHO6HUYLFH)G WKHVWDWXWH WK &LU SODLQWLIIjV EDUH DOOHJDWLRQ RI D ZDONLQJ LPSDLUPHQWGLGQRWVXIILFHWRSURYHWKDWWKHLPSDLUPHQWURVH $ WRWKHOHYHORIDGLVDELOLW\ :H PXVW PDNH DQ LQGLYLGXDOL]HG LQTXLU\ LQWR ZKHWKHU D &RWWHUDOVRFLWHGKLVGRFWRUjVRUGHUWKDWKHmWDNHIUHTXHQW SODLQWLIILVGLVDEOHG6HH6XWWRQY8QLWHG$LU/LQHV,QF EUHDNV WR DYRLG VWUHVV >DQG@ DYRLG SURORQJHG RYHUWLPHl D 86 7KXVWKRXJKFROLWLVPLJKWQRWEHD UHFLWDWLRQZKLFKVHHPVDLPHGDWGHPRQVWUDWLQJWKDW&RWWHULV GLVDELOLW\IRUHYHU\RQHZKRKDVLWLWPLJKWEHDGLVDELOLW\IRU VXEVWDQWLDOO\ OLPLWHG LQ WKH PDMRU OLIH DFWLYLW\ RI ZRUNLQJ &RWWHU 0RUHRYHU EHFDXVH ZH PXVW WDNH LQWR DFFRXQW 7KHGLVWULFWFRXUWIRXQGWKDW&RWWHULVQRWVXEVWDQWLDOO\OLPLWHG mPHDVXUHVWKDWPLWLJDWHWKHLQGLYLGXDOjVLPSDLUPHQWlLGDW LQ KLV DELOLW\ WR ZRUN EHFDXVH KH IRXQG D VLPLODU MRE DIWHU WKHFROLWLVPXVWEHYLHZHGLQLWVPHGLFDWHGoDQGWKXV WHUPLQDWLRQDQGKDVZRUNHGFRQWLQXRXVO\ZLWKRXWWDNLQJWLPH VXEVWDQWLDOO\ FRQWUROOHG o VWDWH ,Q GHWHUPLQLQJ ZKHWKHU RIIEHFDXVHRIKLVFROLWLV6XFKDILQGLQJLVHQWLUHO\FRQVLVWHQW &RWWHUjV FROLWLV LV GLVDEOLQJ ZH FRQVLGHU WKUHH IDFWRUV ZLWKWKH((2&JXLGHOLQHVRQWKHVXEMHFW ZKHWKHUKLVFROLWLVFRQVWLWXWHVDSK\VLFDOLPSDLUPHQW LI VR ZKHWKHU DQ\ OLIH DFWLYLW\ ZKLFK WKH FROLWLV SXUSRUWHGO\ :LWKUHVSHFWWRWKHPDMRUOLIHDFWLYLW\RIZRUNLQJo FXUWDLOVFRQVWLWXWHVDPDMRUOLIHDFWLYLW\XQGHUWKH$'$ DQG LIVRZKHWKHUWKHFROLWLVVXEVWDQWLDOO\OLPLWVWKDWPDMRUOLIH 7KH WHUP VXEVWDQWLDOO\ OLPLWV PHDQV VLJQLILFDQWO\ DFWLYLW\6HH%UDJGRQY$EERWW86 UHVWULFWHGLQWKHDELOLW\WRSHUIRUPHLWKHUDFODVVRIMREVRU DEURDGUDQJHRIMREVLQYDULRXVFODVVHVDVFRPSDUHGWR WKHDYHUDJHSHUVRQKDYLQJFRPSDUDEOHWUDLQLQJVNLOOVDQG DELOLWLHV7KHLQDELOLW\WRSHUIRUPDVLQJOHSDUWLFXODUMRE GRHVQRWFRQVWLWXWHDVXEVWDQWLDOOLPLWDWLRQLQWKHPDMRU 0 ,&+ &203 $:6 / SURYLGHV VSHFLILFDOO\ m$Q OLIHDFWLYLW\RIZRUNLQJ HPSOR\PHQW DJHQF\ VKDOO QRW IDLO RU UHIXVH WR UHIHU IRU HPSOR\PHQW RU RWKHUZLVH GLVFULPLQDWH DJDLQVW DQ LQGLYLGXDO EHFDXVH RI D GLVDELOLW\ RU FODVVLI\ RU UHIHU IRU HPSOR\PHQW DQ LQGLYLGXDO RQ WKH EDVLV RI D GLVDELOLW\ &)5 M L 7KHFRXUWEHORZDOVRIRXQGWKDW WKDW LV XQUHODWHG WR WKH LQGLYLGXDOjV DELOLW\ WR SHUIRUP WKH GXWLHV RI D WKH SK\VLFLDQjV UHVWULFWLRQV RQ ZRUNLQJ RYHUWLPH GLG QRW SDUWLFXODU MRE RU SRVLWLRQl FUHDWH D GLVDELOLW\ XQGHU WKH $'$ :H KDYH KHOG WKDW DQ
Reference
- Status
- Published