Peterson Novelty v. City of Berkley
Peterson Novelty v. City of Berkley
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
3(7(5621 129(/7,(6 ,1& ; DQG+$52/' %$50$1 3ODLQWLIIV$SSHOODQWV 1R Y ! &,7< 2) %(5./(< DQG 5$<021' $1*(5 'HIHQGDQWV$SSHOOHHV 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI0LFKLJDQDW'HWURLW 1R nsRKQ&RUEHWW2j0HDUD'LVWULFWsXGJH $UJXHG 0DUFK 'HFLGHGDQG)LOHG 2FWREHU %HIRUH .(11('<DQG%2**6&LUFXLWsXGJHV DQG &2))0$1'LVWULFWsXGJH
7KH +RQRUDEOH sHQQLIHU % &RIIPDQ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ DQG :HVWHUQ 'LVWULFWV RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ
3HWHUVRQ1RYHOWLHVHWDOY 1R &LW\RI%HUNOH\HWDO
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' +XJK 0 'DYLV sU &2167,787,21$/ /,7,*$7,21 $662&,$7(6 'HWURLW 0LFKLJDQ IRU $SSHOODQWV sXOLH 0F&DQQ 2j&RQQRU 2j&21125 'H*5$=,$ 7$00 %ORRPILHOG +LOOV 0LFKLJDQ IRU $SSHOOHHV 21 %5,() +XJK 0 'DYLV sU &2167,787,21$//,7,*$7,21$662&,$7(6'HWURLW 0LFKLJDQ IRU $SSHOODQWV sXOLH 0F&DQQ 2j&RQQRU 2j&21125 'H*5$=,$ 7$00 %ORRPILHOG +LOOV 0LFKLJDQIRU$SSHOOHHV BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB %2**6&LUFXLWsXGJH3HWHUVRQ1RYHOWLHV,QFDQGLWV RZQHU+DUROG%DUPDQ FROOHFWLYHO\m3HWHUVRQl DSSHDOWKH GLVWULFWFRXUWjVGLVPLVVDORIWKHLU FODLPVDJDLQVWWKH &LW\ RI %HUNOH\ 0LFKLJDQ WKH m&LW\l DQG 'HWHFWLYH6HUJHDQW 5D\PRQG $QJHU RI WKH %HUNOH\ 3XEOLF 6DIHW\'HSDUWPHQW7KHGLVWULFWFRXUWKHOGWKDWWKHFODLPV ZKLFKDURVHRXWRI3HWHUVRQjVRSHUDWLRQDVDILUHZRUNVUHWDLOHU GXULQJ DQG ZHUHmLQH[WULFDEO\LQWHUZLQHGlZLWK LVVXHVSUHVHQWHGWRD0LFKLJDQVWDWHFRXUWDWWKDWWLPHDQG ZHUH WKXV SUHFOXGHG E\ RSHUDWLRQ RI WKH 5RRNHU)HOGPDQ GRFWULQH 2Q DSSHDO 3HWHUVRQ DUJXHV WKDW WKH 5RRNHU )HOGPDQ GRFWULQH GRHV QRW DSSO\ WR WKLV VLWXDWLRQ DQG HYHQLILWGLGDSSO\WRVRPHRI3HWHUVRQjVFODLPVLWZRXOG QRWRSHUDWHWRSUHFOXGHDOORIWKHFODLPVLQWKHVXLW)RUWKH UHDVRQVWKDWIROORZZHDIILUPWKHGLVWULFWFRXUWjVGLVSRVLWLRQ , 7KLVFDVHEHJLQVDV0LFKLJDQILUHZRUNVFDVHVRIWHQGRZLWK D ILUHZRUNV UHWDLOHU DWWHPSWLQJ WR REWDLQ D VHDVRQDO VDOHV OLFHQVHWRVHOOILUHZRUNVLQD0LFKLJDQPXQLFLSDOLW\,Q 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
SUHFOXVLRQ XQGHU 0LFKLJDQ ODZ EDUV WKLV FRXUW IURP 3HWHUVRQDSSOLHGIRUDSHUPLWWRVHOOFRQVXPHUILUHZRUNVLQ FRQVLGHULQJ3HWHUVRQjVXQUHDVRQDEOHVHDUFKDQGVHL]XUHFODLP %HUNOH\ DQG ZDV GHQLHG D SHUPLW 3HWHUVRQ ILOHG VXLW LQ QRZ,ELG 2DNODQG&RXQW\&LUFXLW&RXUWFRPSODLQLQJWKDWWKHGHQLDO YLRODWHG YDULRXV RI LWV ULJKWV DQG UHTXHVWLQJ WKDW WKH FRXUW ,9 RUGHU WKH &LW\ WR JUDQW WKH SHUPLW $IWHU DQ HYLGHQWLDU\ KHDULQJWKHVWDWHFRXUWLVVXHGDWHPSRUDU\UHVWUDLQLQJRUGHU )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUWjV IRUWKH VHDVRQRUGHULQJWKH&LW\WRJUDQW3HWHUVRQWKH RUGHUJUDQWLQJWKHGHIHQGDQWVj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sXQH 'HWHFWLYH$QJHUKDYLQJUHFHLYHGLQIRUPDWLRQUHJDUGLQJWKH SRVVLEOHVDOHE\3HWHUVRQRILOOHJDOILUHZRUNVLQVSHFWHGWKH WHQWRXWRIZKLFK3HWHUVRQZDVRSHUDWLQJVHL]HGILUHZRUNVKH EHOLHYHG WR EH LOOHJDO DQG DUUHVWHG VHYHUDO 3HWHUVRQ HPSOR\HHV7KH&LW\DOOHJHVWKDW'HWHFWLYH$QJHUILUVWZHQW WRLQVSHFWWKHWHQWRQsXQHDQGSXUFKDVHG ZRUWKRI ILUHZRUNVKHEHOLHYHGWREHLOOHJDOEXWWRRNQRIXUWKHUDFWLRQ 7KHQDFFRUGLQJWRWKH&LW\RQsXQHWKH2DNODQG&RXQW\ 3URVHFXWRULVVXHGDZDUUDQWVLJQHGE\DQRWKHUVWDWHMXGJHDQG SXUVXDQW WR WKDW ZDUUDQW WKH &LW\ VHL]HG ILUHZRUNV LW GHWHUPLQHGWREHRIIHUHGIRUVDOHLQYLRODWLRQRIVWDWHODZDQG DUUHVWHG WKH 3HWHUVRQ HPSOR\HHV 3HWHUVRQ FODLPV WKDW WKH &LW\XQGHUWRRNDZDUUDQWOHVVUDLGRQRUDERXWsXQHVHL]HG WKHILUHZRUNVDQGDUUHVWHGWKHHPSOR\HHVDQGWKHQJRWWKH ZDUUDQW (LWKHUZD\LWLVFOHDUWKDW3HWHUVRQUHVSRQGHGE\ILOLQJIRU DQ HPHUJHQF\ VKRZ FDXVH RUGHU GHPDQGLQJ WKDW WKH &LW\ VKRZZK\LWVKRXOGQRWEHKHOGLQFRQWHPSWRIWKHFRXUWjV 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
0D\ UHVWUDLQLQJRUGHU,QLWVHPHUJHQF\PRWLRQ3HWHUVRQ DQGSURVHFXWLRQl,GDW,QUHMHFWLQJ3HWHUVRQjVVWDWHODZ DUJXHG WKDW LW KDG EHHQ RSHUDWLQJ OHJDOO\ DQG ZLWKLQ WKH IDOVHDUUHVWFODLPLQLWV1RYHPEHUGHFLVLRQWKH2DNODQG SDUDPHWHUVRIWKHFRXUWjVSUHYLRXVRUGHUVDQGWKDWWKH&LW\KDG &RXQW\&LUFXLW&RXUWKHOG LQWHQWLRQDOO\ DFWHG FRQWUDU\ WR WKH FRXUWjV RUGHU VHL]LQJ ILUHZRUNVDQGDUUHVWLQJHPSOR\HHVZLWKRXWDZDUUDQW7KH\ >7@KHUHZDV DPSOHSUREDEOHFDXVHWRDUUHVW>%DUPDQ@ DUJXHG WKDW WKH VHL]XUHV ZHUH LOOHJDO DQG mVXEMHFWHG >WKH 3ODLQWLIIZDVDUUHVWHGSXUVXDQWWRDZDUUDQWIRUVHOOLQJ SODLQWLIIV@ WR LUUHSDUDEOH KDUP LQ WKHLU EXVLQHVV DQG OLEHUW\ LOOHJDOILUHZRUNV'HWHFWLYH$QJHUREVHUYHGHPSOR\HHV LQWHUHVWVl3HWHUVRQDVNHGWKHFRXUWWRSUHYHQWWKH&LW\IURP DW 3ODLQWLIIjV EXVLQHVV VHOOLQJ ILUHZRUNV LGHQWLILHG E\ DSSO\LQJIRUDZDUUDQWEDVHGmRQWKHIDOVHFODLPWKDW3ODLQWLIIV VWDWXWH WR EH LOOHJDO %DVHG XSRQ WKDW LQIRUPDWLRQ D DUHHQJDJHGLQLOOHJDODFWLYLW\lZLWKRXWDWWDFKLQJDFRS\RIWKH ZDUUDQWIRU3ODLQWLII>jV@DQGKLVHPSOR\HHV>j@DUUHVWZDV FRXUWjV0D\ RUGHUWRDQ\VXFKDSSOLFDWLRQ LVVXHGE\WKH2DNODQG&RXQW\3URVHFXWRUjV2IILFH 7KH MXGJH ZKR LVVXHG WKH 0D\ RUGHU ZDV WHPSRUDULO\ 3HWHUVRQ1RYHOWLHV1R &=DW7KHVWDWHFRXUW XQDYDLODEOHVRWKHSDUWLHVDSSHDUHGEHIRUHDQRWKHUMXGJHRI KDYLQJKHOGWKDWWKHUHZDVSUREDEOHFDXVHWRMXVWLI\%DUPDQjV WKH2DNODQG&RXQW\&LUFXLW&RXUWZKRGLUHFWHGWKHSDUWLHVWR DUUHVWWKLVFRXUWLVSUHFOXGHGIURPUHFRQVLGHULQJWKHLVVXHIRU DSSHDUEHIRUHWKHRULJLQDOMXGJHRQsXO\7KHQRQsXQH WKHVDPHUHDVRQVWKDWWKLVFRXUWLVEDUUHGIURPUHFRQVLGHULQJ DSSDUHQWO\LQUHDFWLRQWRWKH&LW\jVLQWHUYHQLQJVHL]XUHDQG WKHLVVXHRI'HWHFWLYH$QJHUjVHQWLWOHPHQWWRWDNHDGYDQWDJH DUUHVWWKDWVDPHMXGJHLVVXHGWKHVKRZFDXVHRUGHURUGHULQJ RIWKHFODLPSUHFOXVLYHHIIHFWRI3HWHUVRQjVHDUOLHUVWDWHFRXUW WKH &LW\ LQ WKH PHDQWLPH WR UHWXUQ DOO VHL]HG FRQVXPHU VXLW$FFRUGLQJO\3HWHUVRQjVPDOLFLRXVSURVHFXWLRQFODLPLV ILUHZRUNVQRWQHHGHGIRUHYLGHQFH SURSHUO\GLVPLVVHG 7KHRULJLQDOMXGJHKHOGWKHVKRZFDXVHKHDULQJRQsXO\ 3HWHUVRQjV ILQDO FODLP DOOHJLQJ XQUHDVRQDEOH VHDUFK DQG GXULQJ ZKLFK KH WRRN WHVWLPRQ\ DQG YLHZHG VHL]XUHLVDOVRSURSHUO\GLVPLVVHGEDVHGRQWKH1RYHPEHU GHPRQVWUDWLYHHYLGHQFH+HLVVXHGDQRUGHURQs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jV UHOLHIVHHNLQJDQRUGHUWKDWWKH0LFKLJDQVWDWXWHSURKLELWLQJ DUUHVW+RZHYHUHYHQLI3HWHUVRQGLGQRWEULQJVXFKDFODLP WKHVDOHRIFHUWDLQILUHZRUNVZDVYRLGIRUYDJXHQHVVDQGWKH EHIRUH WKH 2DNODQG &RXQW\ &RXUW LQ LW LV FOHDU WKDW FRXUW JUDQWHG WKH UHOLHI 7KLV ILQGLQJ ZDV ODWHU HIIHFWLYHO\ 3HWHUVRQjVXQUHDVRQDEOHVHDUFKDQGVHL]XUHFODLPLVmEDVHGRQ RYHUWXUQHG E\ WKH 0LFKLJDQ &RXUW RI $SSHDOV KRZHYHU WKHVDPHWUDQVDFWLRQRUHYHQWVlDVWKRVHDWLVVXHLQWKDWFDVH EDVHG RQ WKLV GHFODUDWRU\ UHOLHI WKH VWDWH GLVWULFW FRXUW 6HH'LWPRUH1:GDW7KHUHIRUHVLQFHWKH GLVPLVVHGWKHSHQGLQJFULPLQDOFKDUJHVDJDLQVW%DUPDQ7KH 2DNODQG&RXQW\FDVHZDVGHFLGHGRQWKHPHULWVUHVXOWHGLQ D ILQDO GHFLVLRQ DQG LQYROYHG WKH VDPH SDUWLHV FODLP 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
86 WKHVHFODLPVGLGQRWDFFUXH XQWLOWKH SURVHFXWRUjVDSSHDORIWKLVGLVPLVVDOZDVILQDOO\GLVPLVVHGLQ FULPLQDO FKDUJHV DJDLQVW %DUPDQ ZHUH GLVPLVVHG LQ sXO\ SXUVXDQWWRDVWLSXODWLRQE\WKHSDUWLHV $VVXPLQJZLWKRXWGHFLGLQJWKDWWKLVLVVRFODLPSUHFOXVLRQ DULVLQJIURPWKH VWDWHFRXUWDFWLRQZRXOGQRWEDUWKHVH 2QsXQH 3HWHUVRQDQGRWKHUVILOHGDWZRFRXQW FODLPV FRPSODLQW LQ IHGHUDO FRXUW DJDLQVW WKH &LW\ DQG 'HWHFWLYH $QJHU ,Q WKH ILUVW FRXQW WKH 3ODLQWLIIV DOOHJHG )LUVW +RZHYHUDVQRWHGDERYH3HWHUVRQFRQWLQXHGWRSURVHFXWH $PHQGPHQWUHWDOLDWLRQWKHGHSULYDWLRQRISURSHUW\ZLWKRXW FODLPVDJDLQVWWKH&LW\DQG'HWHFWLYH$QJHULQVWDWHFRXUW$V GXHSURFHVVRIODZLQYLRODWLRQRIWKH)LIWKDQG)RXUWHHQWK DOVRQRWHGDERYHWKH2DNODQG&RXQW\&LUFXLW&RXUWKHOGLQ $PHQGPHQWVPDOLFLRXVSURVHFXWLRQLQYLRODWLRQRIWKH)RXUWK D1RYHPEHUGHFLVLRQWKDW3HWHUVRQjV FODLPVZHUH DQG)RXUWHHQWK$PHQGPHQWVDQGXQUHDVRQDEOHVHDUFKDQG EDUUHGE\FODLPSUHFOXVLRQDULVLQJIURP3HWHUVRQjV VWDWH VHL]XUHLQYLRODWLRQRIWKH)RXUWK$PHQGPHQW,QWKHVHFRQG FRXUWDFWLRQ7KHFRXUWLQWKHVDPHGHFLVLRQDOVRDGGUHVVHG FRXQWWKHSODLQWLIIVDOOHJHGYDULRXVVWDWHODZFDXVHVRIDFWLRQ DQGUHMHFWHGRQWKHPHULWVVWDWHODZFODLPV3HWHUVRQEURXJKW 7KHGLVWULFWFRXUWGLVPLVVHGWKHVHFRQGFRXQWDQG3HWHUVRQ IRU PDOLFLRXV SURVHFXWLRQ DQG IDOVH DUUHVW 6HH 3HWHUVRQ DQG%DUPDQILOHGDQDPHQGHGFRPSODLQWRQsXO\ LQ 1RYHOWLHV1R &=DW ZKLFKWKH\ZHUHWKHRQO\SODLQWLIIVDQGLQZKLFKWKH\DOOHJHG RQO\WKHYLRODWLRQVOLVWHGLQWKHILUVWFRXQW ,QOLJKWRIWKH0LFKLJDQFRXUWjVUHMHFWLRQRI3HWHUVRQjVVWDWH ODZPDOLFLRXVSURVHFXWLRQFODLPWKH&LW\DVNVWKLVFRXUWWR 7KH GHIHQGDQWV PRYHG IRU VXPPDU\ GLVSRVLWLRQ DQG WKH KROG WKDW LW LV SUHFOXGHG IURP FRQVLGHULQJ 3HWHUVRQjV FRXUWKHOGDKHDULQJRQWKHPRWLRQ7KHGHIHQGDQWVDUJXHG PDOLFLRXVSURVHFXWLRQFODLPQRZ WKDWVLQFH3HWHUVRQjVFODLPVDOODURVHRXWRIWKHVDPHIDFWVWKDW IRUPHG WKH EDVLV RI 3HWHUVRQjV HPHUJHQF\ PRWLRQ LQ VWDWH ,QWKHSDVWWKH&LW\ZRXOGKDYHEHHQFRUUHFWDVWKLVFRXUW FRXUWVHHNLQJDILQGLQJRIFRQWHPSWDJDLQVWWKH&LW\WKHQHZ RQFHGHILQHGWKHHOHPHQWVRID)RXUWK$PHQGPHQWPDOLFLRXV FODLPVZHUHSUHFOXGHGE\5RRNHU)HOGPDQ$OWHUQDWLYHO\WKH SURVHFXWLRQFODLPLQSDUWE\UHIHUHQFHWRWKHUHOHYDQWVWDWHODZ GHIHQGDQWVDUJXHGWKDW3HWHUVRQjVVXLWZDVEDUUHGE\FODLP DQDORJXH6HH&RRJDQY:L[RP)G WK SUHFOXVLRQEDVHGRQWKHHDUOLHUVWDWHFRXUWVXLWEHFDXVHDOORI &LU +RZHYHUWKLVFRXUWUHFHQWO\UHFRQVLGHUHGWKLV 3HWHUVRQjVFODLPVFRXOGKDYHEHHQEURXJKWLQWKHHDUOLHUVXLW SUDFWLFHLQOLJKWRILQWHUYHQLQJ6XSUHPH&RXUWFDVHODZDQG KDVQRZPDGHLWFOHDUWKDWmZHPD\QRORQJHUUHO\RQWKHVWDWH 7KH GLVWULFW FRXUW JUDQWHG WKH GHIHQGDQWVj PRWLRQ IRU ODZRIPDOLFLRXVSURVHFXWLRQWRGHILQHWKHSURSHUFDXVHRI MXGJPHQW RQ WKH SOHDGLQJV KROGLQJ WKDW 3HWHUVRQjV FODLPV DFWLRQ IRU D IHGHUDO PDOLFLRXV SURVHFXWLRQ FODLP XQGHU ZHUHmLQH[WULFDEO\LQWHUWZLQHGlZLWKLVVXHVHDUOLHUSUHVHQWHG l6HH'DUUDKY&LW\RI2DN3DUN)G WRWKHVWDWHFRXUWDQGZHUHWKHUHIRUHSUHFOXGHGE\WKH5RRNHU WK&LU FLWLQJ$OEULJKWY2OLYHU86 )HOGPDQ GRFWULQH 6HH 3HWHUVRQ 1RYHOWLHV ,QF Y &LW\ RI DQG)UDQW]Y9LOODJHRI%UDGIRUG)G %HUNOH\1R :/ DW ('0LFK WK&LU $XJ ,WLVIURPWKLVKROGLQJWKDW3HWHUVRQDSSHDOVWR WKLVFRXUW +RZHYHUWKLVFRXUWPDGHFOHDULQWKHVDPHFDVHWKDWZKLOH WKHVSHFLILFHOHPHQWVRIDIHGHUDOPDOLFLRXVSURVHFXWLRQFODLP PD\QRWEH HQWLUHO\FOHDUDWWKHYHU\OHDVWDSODLQWLIIPXVW VKRZmWKDWWKHUHZDVQRSUREDEOHFDXVHWRMXVWLI\KHUDUUHVW 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
,, &RXUW,Q1RYHPEHUWKH0LFKLJDQVWDWHFRXUWLVVXHGDQ RSLQLRQZKLFKoPXFKOLNHWKLVGHFLVLRQoKHOGLQWHUDOLD 7KH'LVWULFW&RXUWjV$SSOLFDWLRQRIWKH5RRNHU)HOGPDQ WKDW 3HWHUVRQj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mLQH[WULFDEO\LQWHUWZLQHGlZLWKLVVXHVGHFLGHGLQVWDWHFRXUW FRXOG WDNH DGYDQWDJH RI WKH FODLPSUHFOXVLYH HIIHFW RI WKH SURFHHGLQJV6HHHJ3DWPRQY0LFKLJDQ6XSUHPH&RXUW HDUOLHU 0LFKLJDQ FRXUW DFWLRQ HYHQ WKRXJK KH ZDV QRW D )G WK&LU QRWLQJWKDWSXUVXDQWWR QDPHGGHIHQGDQWWRWKDWDFWLRQ 5RRNHU)HOGPDQDSSOLFDWLRQWRWKH6XSUHPH&RXUWLVmWKH RQO\DYHQXHIRUIHGHUDOUHYLHZRIVWDWHFRXUWSURFHHGLQJVl 7KH0LFKLJDQVWDWHODZLVVXHRI'HWHFWLYH$QJHUjVDELOLW\ +ROORZD\ Y %UXVK)G WK&LU HQ WRWDNHDGYDQWDJHRIWKHFODLPSUHFOXVLYHHIIHFWRIWKHHDUOLHU EDQF UHDGLQJWKHGRFWULQHDVmWHDFK>LQJ@WKDWIHGHUDOFRXUWV VWDWHFRXUWDFWLRQKDYLQJEHHQGHFLGHGLQWKHDIILUPDWLYHE\ KDYH QR VXEMHFW PDWWHU MXULVGLFWLRQ WR HQWHUWDLQ IHGHUDO WKH 0LFKLJDQ &LUFXLW &RXUW WKLV FRXUW LV SUHFOXGHG IURP FRQVWLWXWLRQDOFODLPVWKDWDUHLQH[WULFDEO\LQWHUWZLQHGZLWKD UHFRQVLGHULQJ LW 8QGHU 0LFKLJDQ ODZ LVVXH SUHFOXVLRQ VWDWH FRXUWjV UXOLQJ LQ DQ HDUOLHU DFWLRQ ZKHQ WKHLU SUHFOXGHVWKHUHOLWLJDWLRQRIDQLVVXHLQDVXEVHTXHQWFDXVHRI DGMXGLFDWLRQZRXOGEHWDQWDPRXQWWRDUHYLHZ>RI@WKHVWDWH DFWLRQEHWZHHQWKHVDPHSDUWLHVRUWKHLUSULYLHVDVORQJDVWKH FRXUW GHFLVLRQl TXRWDWLRQV RPLWWHG 8QLWHG 6WDWHV Y HDUOLHUSURFHHGLQJUHVXOWHGLQDYDOLGILQDOMXGJPHQWDQGWKH 2ZHQV )G WK &LU QRWLQJ WKDW WKH VDPHLVVXHZDVDFWXDOO\OLWLJDWHGDQGQHFHVVDULO\GHWHUPLQHG GRFWULQHmVWDQGVIRUWKHSURSRVLWLRQWKDWDIHGHUDOGLVWULFWFRXUW 6HH 'LWPRUH 1:G DW 3HRSOH Y *DWHV PD\ QRW KHDU DQ DSSHDO RI D FDVH DOUHDG\ OLWLJDWHG LQ VWDWH 1:G 0LFK VDPH +HUHZHKDYHDQ FRXUWl LGHQWLW\ RI SDUWLHV DQG WKH UHOHYDQW LVVXH EHLQJ QHFHVVDULO\ GHWHUPLQHGLQDQHDUOLHUSURFHHGLQJWKDWUHVXOWHG LQDILQDO ,QGHILQLQJZKDWLVPHDQWE\mLQH[WULFDEO\LQWHUZLQHGlWKLV MXGJPHQW :H WKHUHIRUH KROG WKDW $QJHU OLNH WKH &LW\ LV FRXUWKDVDGRSWHGWKHUHDVRQLQJRIsXVWLFH0DUVKDOODQGRIWKH HQWLWOHGWRWDNHDGYDQWDJHRIWKHFODLPSUHFOXVLYHHIIHFWRIWKH (LJKWK&LUFXLWWKDW HDUOLHUVWDWHFRXUWDFWLRQ$FFRUGLQJO\ZHDIILUPWKHGLVWULFW FRXUWjVGLVPLVVDORI3HWHUVRQjV)LUVWDQG)LIWK$PHQGPHQW >7@KHIHGHUDOFODLPLVLQH[WULFDEO\LQWHUWZLQHGZLWKWKH FODLPV VWDWHFRXUWMXGJPHQWLIWKHIHGHUDOFODLPVXFFHHGVRQO\WR WKHH[WHQWWKDWWKHVWDWHFRXUWZURQJO\GHFLGHGWKHLVVXHV 3HWHUVRQjV)RXUWK$PHQGPHQW&ODLPV EHIRUH LW :KHUH IHGHUDO UHOLHI FDQ RQO\ EH SUHGLFDWHG XSRQDFRQYLFWLRQWKDWWKHVWDWHFRXUWZDVZURQJLWLV :LWK UHVSHFW WR 3HWHUVRQjV )RXUWK $PHQGPHQW FODLPV GLIILFXOW WR FRQFHLYH WKH IHGHUDO SURFHHGLQJ DV LQ DOOHJLQJPDOLFLRXVSURVHFXWLRQDQGXQUHDVRQDEOHVHDUFKDQG VHL]XUH3HWHUVRQDUJXHVWKDWSXUVXDQWWR+HFNY+XPSKUH\ 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
7KHVWDWXVRI'HWHFWLYH$QJHUDVDGHIHQGDQWLVQRWDVFOHDU VXEVWDQFHDQ\WKLQJRWKHUWKDQDSURKLELWHGDSSHDORIWKH VLQFH KH ZDV QRW D SDUW\ WR WKH VWDWH FRXUW VXLW $V VWDWHG VWDWHFRXUWMXGJPHQW DERYHXQGHU0LFKLJDQODZFODLPSUHFOXVLRQDSSOLHVWRWKRVH LQ SULYLW\ ZLWK SDUWLHV DV ZHOO DV WR SDUWLHV 6HH 6ORDQ Y &DW]Y&KDONHU)G WK&LU TXRWLQJ 0DGLVRQ+HLJKWV0LFK +RZHYHULQ .HHQH&RUSY&DVV )G WK&LU RUGHUWRILQGSULYLW\WRH[LVWEHWZHHQDSDUW\DQGQRQSDUW\ TXRWLQJ3HQQ]RLO&RY7H[DFR,QF86 0LFKLJDQ FRXUWV UHTXLUH mERWK D VXEVWDQWLDO LGHQWLW\ RI 0DUVKDOOsFRQFXUULQJ DPHQGHGE\)G WK LQWHUHVWVDQGDZRUNLQJRUIXQFWLRQDOUHODWLRQVKLSLQZKLFK &LU VHHDOVR7URSIY)LG1DW O7LWOH,QV&R )G WKHLQWHUHVWVRIWKHQRQSDUW\DUHSUHVHQWHGDQGSURWHFWHGE\ WK &LU TXRWLQJ &DW] IRU WKH VDPH WKHSDUW\LQWKHOLWLJDWLRQl3KLQLVHHY5RJHUV1:G SURSRVLWLRQ $QGHUVRQY&KDUWHU7RZQVKLSRI<SVLODQWL 0LFK&W$SS TXRWDWLRQVRPLWWHG )G WK&LU TXRWLQJsXVWLFH0DUVKDOOLQ 3HQQ]RLO 7KRXJK VLPSOH LQ FRQFHSW WKH GRFWULQH LV QRW 7UDGLWLRQDOO\SULYLW\ZDVVWULFWO\UHTXLUHGIRUDSSOLFDWLRQRI HDVLO\DSSOLHG7KLVLVEHFDXVHWKHGRFWULQHLVDVWKLVFRXUW SUHFOXVLRQ DSDUW\FRXOGQRWHQMR\WKHEHQHILWRIDQHDUOLHU KDV GHVFULEHG LW mVLPSOH \HW QRQHWKHOHVV FRQIXVLQJ l DFWLRQXQOHVVWKH\ZRXOGKDYHEHHQERXQGE\LW6HHHJ *RWWIULHGY0HG3ODQQLQJ6HUYV)G WK&LU %LJHORZY2OG'RPLQLRQ&RSSHU0LQLQJ 6PHOWLQJ&R 86 0RUHUHFHQWO\KRZHYHUPDQ\ IHGHUDO FLUFXLWV KDYH OHIW EHKLQG WKH WUDGLWLRQDO PXWXDOLW\ 7KHGLVWULFWFRXUWLQWKHSUHVHQWFDVHKHOGWKDWWKH5RRNHU UHTXLUHPHQW IRU VRPH GHIHQVLYH XVHV RI FODLP SUHFOXVLRQ )HOGPDQGRFWULQHSUHFOXGHV3HWHUVRQjVFODLPVLQIHGHUDOFRXUW 6HHHJ5DQGOHVY*UHJDUW )G WK&LU EHFDXVH3HWHUVRQjVIHGHUDOFRPSODLQWPHUHO\UHVWDWHGPDQ\RI ,QUH(O6DQsXDQ+RWHO&RUS)G VW&LU WKH DOOHJDWLRQV 3HWHUVRQ PDGH LQ WKH HDUOLHU VWDWH FRXUW ,Q WKHVH FRXUWV XQGHU FHUWDLQ FLUFXPVWDQFHV D SURFHHGLQJV 6HH 3HWHUVRQ :/ DW GHIHQGDQWLQDVXEVHTXHQWDFWLRQFDQWDNHDGYDQWDJHRIWKH 6SHFLILFDOO\ WKH FRXUW QRWHG WKDW SDUDJUDSKV RI FODLPSUHFOXVLYH HIIHFW RI D SULRU MXGJPHQW LQYROYLQJ WKH 3HWHUVRQjVDPHQGHGFRPSODLQWZHUHDOPRVWLGHQWLFDOWRWKH VDPHSODLQWLIIDQGGLIIHUHQWGHIHQGDQWV+RZHYHUDVQRWHG DOOHJDWLRQVPDGHLQ3HWHUVRQjVHPHUJHQF\PRWLRQWRWKHVWDWH DERYHWKLVFRXUWPXVWORRNWRVWDWHODZWRJLYHVXEVWDQFHWR FRXUW,ELG:ULWLQJWKDW5RRNHU)HOGPDQDSSOLHVZKHQDQ WKHSUHFOXVLYHHIIHFWRIDVWDWHFRXUWMXGJPHQWVHH0LJUD LVVXH ZDV UDLVHG DQG DGMXGLFDWHG LQ D SULRU VWDWH FRXUW 86DWDQGLWLVQRWFOHDUEDVHGRQDUHYLHZRIWKHFDVH SURFHHGLQJDQGZKHQFODLPVPDGHLQIHGHUDOFRXUWmDULVHRXW ODZ WKDW WKH VWDWH RI 0LFKLJDQ SHUPLWV QRQPXWXDO FODLP RIWKHYHU\VDPHLQFLGHQWVlWKDWJDYHULVHWRDQHDUOLHUVWDWH SUHFOXVLRQ FRXUW DGMXGLFDWLRQ WKH GLVWULFW FRXUW KHOG WKDW 5RRNHU )HOGPDQ GHSULYHG LW RI VXEMHFW PDWWHU MXULVGLFWLRQ RYHU )RUWKLVUHDVRQDQGEHFDXVHZHKDYHQRLQIRUPDWLRQXSRQ 3HWHUVRQjVFODLPV6HHLGDW TXRWLQJ3HWHUVRQ1RYHOWLHV ZKLFKWREDVHDILQGLQJWKDW'HWHFWLYH$QJHUZDVLQSULYLW\ ,QFY5R\DO2DN7RZQVKLS VOLSRS ('0LFK ZLWK WKH &LW\ LQ WKH VWDWH FRXUW DFWLRQ ZH ZRXOG EH 'HF KHVLWDQWWRKROGRQRXURZQWKDW'HWHFWLYH$QJHUPD\EHQHILW IURP WKH FODLP SUHFOXVLYH HIIHFW RI WKH HDUOLHU VWDWH FRXUW ,Q WU\LQJ WR VXSSRUW WKH GLVWULFW FRXUWjV GLVSRVLWLRQ RQ DFWLRQ +RZHYHU ZKLOH WKLV FDVH ZDV SHQGLQJ LQ IHGHUDO DSSHDOWKH&LW\VLPLODUO\VHL]HVXSRQWKHIDFWWKDW3HWHUVRQjV FRXUW3HWHUVRQFRQWLQXHGWRSURVHFXWHLWVFODLPVDJDLQVWERWK IHGHUDO FDVH DQG LWV HDUOLHU VWDWH FRXUW FDVH DULVH RXW RI D WKH &LW\ DQG 'HWHFWLYH $QJHU LQ 2DNODQG &RXQW\ &LUFXLW FRPPRQIDFWXDOQH[XV,QRWKHUZRUGVDFFRUGLQJWRWKH&LW\ 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
WKH LVVXHV LQ WKH WZR FDVHV DUH mLQH[WULFDEO\ LQWHUWZLQHGl UHOLWLJDWLRQ RI DOO FODLPV DFWXDOO\ OLWLJDWHG LQ D SULRU DFWLRQ EHFDXVH WKH VDPH IDFWV WKDW IRUP WKH EDVLV IRU 3HWHUVRQjV EHWZHHQWKHVDPHSDUWLHVDQGWKRVHFODLPVDULVLQJRXWRIWKH FRQVWLWXWLRQDO FODLPV LQ IHGHUDO FRXUW IRUPHG WKH EDVLV IRU VDPHWUDQVDFWLRQWKDWFRXOGKDYHEHHQOLWLJDWHG6HH3LHUVRQ 3HWHUVRQjVHPHUJHQF\PRWLRQLQVWDWHFRXUW 6DQG *UDYHO,QFY.HHOHU%UDVV&R0LFK KROGLQJWKDWSUHFOXVLRQDSSOLHVmWRHYHU\SRLQWZKLFK 2QDSSHDO3HWHUVRQDUJXHVWKDWWKHGLVWULFWFRXUWHUUHGE\ SURSHUO\EHORQJHGWRWKHVXEMHFWRIOLWLJDWLRQDQGZKLFKWKH IRFXVLQJRQWKHFRPPRQVHWRIIDFWVLQWKHWZRFDVHVUDWKHU SDUWLHVH[HUFLVLQJUHDVRQDEOHGLOLJHQFHPLJKWKDYHEURXJKW WKDQRQWKHLVVXHVEHIRUHWKHVWDWHFRXUW3HWHUVRQFRQWHQGV IRUZDUG DW WKH WLPHl TXRWDWLRQV RPLWWHG 'LWPRUH WKDW WKH VWDWH FRXUW SURFHHGLQJ ZDV FRQFHUQHG ZLWK WKH 1:GDW FODLPSUHFOXVLRQmEDUVUHOLWLJDWLRQRIFODLPV YDOLGLW\RIWKH&LW\jVVHDVRQDOVDOHVOLFHQVLQJRUGLQDQFHWKH WKDWDUHEDVHG RQWKHVDPHWUDQVDFWLRQRUHYHQWVDVDSULRU PDQQHU LQ ZKLFK LW ZDV DSSOLHG WR 3HWHUVRQ DQG ZKDW VXLWl sRQHVY6WDWH)DUP0XW$XWR,QV&R 1:G ILUHZRUNV3HWHUVRQFRXOGOHJDOO\VHOOSXUVXDQWWRWKHOLFHQVH 0LFK &W $SS FODLP SUHFOXVLRQ mEDUV LW KHOG 2Q WKH FRQWUDU\ 3HWHUVRQjV IHGHUDO FRXUW DFWLRQ FODLPVDULVLQJRXWRIWKHVDPHWUDQVDFWLRQWKDWSODLQWLIIFRXOG IRFXVHG RQ WKH &LW\ KDYLQJ DOOHJHGO\ YLRODWHG 3HWHUVRQjV KDYHEURXJKWEXWGLGQRWDVZHOODVWKRVHTXHVWLRQVWKDWZHUH FRQVWLWXWLRQDOULJKWVE\LOOHJDOO\VHL]LQJ3HWHUVRQjVSURSHUW\ DFWXDOO\OLWLJDWHGl REWDLQLQJ D IDOVH VHDUFK ZDUUDQW DQG IDOVHO\ DUUHVWLQJ LPSULVRQLQJDQGPDOLFLRXVO\SURVHFXWLQJ%DUPDQ ,WLVREYLRXVWKDWWKHVWDWHFRXUWLQWKHSUHVHQWFDVHGHFLGHG WKHLVVXHVEHIRUHLWRQWKHPHULWVDQGWKDWWKHUHVXOWDQWGHFUHH ,WLVQRWFOHDUWKDWHLWKHUWKHGLVWULFWFRXUWGHFLVLRQRUWKH ZDVILQDO,WLVHTXDOO\FOHDUWKDW3HWHUVRQjV)LUVW$PHQGPHQW SDUWLHV SODFH WKH IRFXV ZKHUH LW VKRXOG EH RQ ZKHWKHU WKH UHWDOLDWLRQ FODLP DQG )LIWK $PHQGPHQW GHSULYDWLRQ RI IHGHUDOFRXUWLILWZHUHWRDGMXGLFDWH3HWHUVRQjVFODLPVZRXOG SURSHUW\ FODLP DURVH RXW RI WKH VDPH WUDQVDFWLRQ DV GLG HIIHFWLYHO\ EH DFWLQJ LPSHUPLVVLEO\ DV DQ DSSHOODWH FRXUW 3HWHUVRQjVVWDWHFRXUWDFWLRQ 3HWHUVRQjVHPHUJHQF\PRWLRQLQ UHYLHZLQJWKHVWDWHFRXUWGLVSRVLWLRQ,WLVFOHDUWKDWWKHVWDWH VWDWHFRXUWVRXJKWDFRQWHPSWILQGLQJDQGGDPDJHVDJDLQVWWKH FRXUW GLG QRW GLUHFWO\ GHFLGH WKH FODLPV SUHVHQWHG E\ &LW\IRUWKHVDPHDFWVWKDW3HWHUVRQQRZDOOHJHVYLRODWHGLWV 3HWHUVRQjV IHGHUDO FRPSODLQW 7KH TXHVWLRQ WKHUHIRUH LV FRQVWLWXWLRQDOULJKWV3HWHUVRQFRXOGYHU\ZHOOKDYHEURXJKW ZKHWKHUWKHFODLPV3HWHUVRQQRZSUHVHQWVWRWKHIHGHUDOFRXUWV LWV)LUVW)LIWKDQG)RXUWHHQWK$PHQGPHQWFODLPVLQWKDWVWDWH DUHmLQH[WULFDEO\LQWHUWZLQHGlZLWKWKHFODLPVGHFLGHGE\WKH FRXUWSURFHHGLQJ)LQDOO\LWLVFOHDUWKDW3HWHUVRQDQGWKH VWDWHFRXUW:LWKUHVSHFWWRWKLVTXHVWLRQWKHUHDVRQLQJRI &LW\RI%HUNOH\ZHUHSDUWLHVWRWKHVWDWHFRXUWDFWLRQ7KH sXVWLFH0DUVKDOODQGWKH(LJKWK&LUFXLWDGRSWHGE\WKLVFRXUW )LUVWDQG)LIWK$PHQGPHQWFODLPVDVEHWZHHQWKHVHSDUWLHV DQG TXRWHG DERYH PDNHV FOHDU WKDW WKH 5RRNHU)HOGPDQ DUHWKHUHIRUHFOHDUO\EDUUHGE\FODLPSUHFOXVLRQ GRFWULQHRSHUDWHVWRGHQ\WKHIHGHUDOFRXUWVMXULVGLFWLRQRYHU 3HWHUVRQjVFODLPVLIWKHIHGHUDOFRXUWVFRXOGQRWKROGWKDWWKH &LW\DQG'HWHFWLYH$QJHUYLRODWHG3HWHUVRQjVFRQVWLWXWLRQDO ULJKWVZLWKRXWLPSOLFLWO\KROGLQJWKDWmWKHVWDWHFRXUWZURQJO\ GHFLGHG WKH LVVXHV EHIRUH LWl &DW] )G DW 7KRXJK ZH QRWH WKDW %DUPDQ ZDV QRW D QDPHG SODLQWLII LQ WKH VWDWH
TXRWDWLRQV RPLWWHG 7KHUHIRUH LQ RUGHU WR GHWHUPLQH FRXUW VXLW DJDLQVW WKH &LW\ FODLP SUHFOXVLRQ ZLOO QRQHWKHOHVV EDU KLV FODLPV EHFDXVH KLV EULHI WR WKLV FRXUW PDNHV FOHDU WKDW KH LV WKH RZQHU RI ZKHWKHUWKH5RRNHU)HOGPDQGRFWULQHLVSURSHUO\DSSOLFDEOH WKH QDPHG SODLQWLII LQ WKH VWDWH FRXUW VXLW 3HWHUVRQ 1RYHOWLHV ,QF $00 WRWKLVFDVHZHPXVWORRNWRZKDWWKHVWDWHFRXUWGHFLGHG $SSHOODQWjV %ULHI DW ,Q QHLWKHU KLV ILOLQJV WR WKH GLVWULFW FRXUW QRU WR WKLV FRXUW KDV %DUPDQ FRQWHQGHG WKDW KH ZDV QRW LQ FRQWURO RI 3HWHUVRQ DW WKH WLPH RI WKH VWDWH FRXUW DFWLRQ 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
3HWHUVRQjVFDVHRQWKHEDVLVRIWKH5RRNHU)HOGPDQGRFWULQH ,IWKHVWDWHFRXUWKDGLQWKHFRXUVHRILWVRSLQLRQKHOGWKDW DVDSSOLFDEOHWRWKHVWDWHFRXUWjVsXO\RUGHU WKH &LW\ KDG QRW DFWHG LOOHJDOO\ ZLWK UHVSHFW WR LWV VHDUFK VHL]XUH DQG SURVHFXWLRQ RI 3HWHUVRQjV SURSHUW\ DQG ,,, HPSOR\HHV WKHQ 3HWHUVRQjV IHGHUDO FODLPV FRXOG VXFFHHG mRQO\WRWKHH[WHQWWKDWWKHVWDWHFRXUWZURQJO\GHFLGHGWKH +DYLQJIRXQGWKH5RRNHU)HOGPDQGRFWULQHLQDSSOLFDEOH LVVXHV EHIRUH LWl ,ELG +RZHYHU WKH sXO\ VWDWH FRXUW ZH FRXOG PHUHO\ YDFDWH WKH GLVWULFW FRXUWjV GLVPLVVDO RI RSLQLRQGRHVQRWGLVFXVVWKHOHJDOLW\RIWKH&LW\jVDFWLRQV LW 3HWHUVRQjVDFWLRQ+RZHYHULWLVZHOOVHWWOHGWKDWWKLVFRXUW PHUHO\UHDIILUPVWKHYDOLGLW\RIWKHFRXUWjVHDUOLHURUGHUZKLOH PD\ DIILUP D GLVWULFW FRXUWjV GHFLVLRQ RQ DQ\ JURXQGV VLOHQWO\UHIXVLQJWRKROGWKH&LW\LQFRQWHPSWRIWKDWRUGHU VXSSRUWHGE\WKHUHFRUG6HH5XVVj.ZLN&DU:DVK,QFY 7KHUHIRUH WKH GLVWULFW FRXUW LQ WKH SUHVHQW FDVH FRXOG JLYH 0DUDWKRQ3HWUROHXP&R)G WK&LU 3HWHUVRQ UHOLHI RQ LWV IHGHUDO FODLPV ZLWKRXW HIIHFWLYHO\ :LWKWKLVLQPLQGZHDIILUPWKHGLVWULFWFRXUWjVGLVPLVVDORI ILQGLQJWKDWWKHVWDWHFRXUWZURQJO\GHFLGHGDQ\LVVXHVEHIRUH 3HWHUVRQjVFODLPVRQRWKHUJURXQGV LW )RU WKLV UHDVRQ WKH5RRNHU)HOGPDQ GRFWULQH GRHV QRW DSSO\WREDUWKHFRXUWjVFRQVLGHUDWLRQRI3HWHUVRQjV FODLPV 3HWHUVRQjV)LUVWDQG)RXUWHHQWK$PHQGPHQW&ODLPV EDVHGRQWKHVWDWHFRXUWjV RUGHU :H KROG WKDW FODLP SUHFOXVLRQ EDUV FRQVLGHUDWLRQ RI 7KH&LW\ZRXOGKDYHWKLVFRXUWGUDZDQLQIHUHQFHIURPWKH 3HWHUVRQjV)LUVWDQG)LIWK$PHQGPHQWFODLPVEHFDXVHWKRVH FLUFXPVWDQFHVWKDW3HWHUVRQDVNHGWKHVWDWHFRXUWWRKROGWKH FODLPV FRXOG KDYH EHHQ EURXJKW LQ 3HWHUVRQjV HDUOLHU VWDWH &LW\ LQ FRQWHPSW RI LWV 0D\ RUGHU DQG WKH FRXUW VLOHQWO\ FRXUWDFWLRQ UHIXVHG6LQFHWKH0D\ RUGHUVHWWKHOHJDOSDUDPHWHUVIRU 3HWHUVRQjV EXVLQHVV LI WKH SURVHFXWLRQ DUUHVW DQG 7KH SUHFOXVLYH HIIHFW RI D VWDWH FRXUW MXGJPHQW LV LPSULVRQPHQW WKDW 3HWHUVRQ FKDOOHQJHV ZHUH LOOHJDO LW ZDV GHWHUPLQHGE\WKDWVWDWHjVODZ6HH0LJUDY:DUUHQ&LW\6FK EHFDXVH3HWHUVRQZDVDFWLQJZLWKLQWKHERXQGVRIWKDWRUGHU 'LVW%GRI(GXF86 mDIHGHUDOFRXUW WKH&LW\DQG'HWHFWLYH$QJHUNQHZLWDQGWKH\DFWHGLQWKH PXVWJLYHWRDVWDWHFRXUWMXGJPHQWWKHVDPHSUHFOXVLYHHIIHFW IDFHRILW7KHUHIRUHDFFRUGLQJWRWKLVDUJXPHQWLIWKHVWDWH DVZRXOGEHJLYHQWKDWMXGJPHQWXQGHUWKHODZRIWKH6WDWHLQ FRXUW GHFLGHG WKDW WKH &LW\ KDG QRW YLRODWHG WKH RUGHU WKH ZKLFKWKHMXGJPHQWZDVUHQGHUHGl 8QGHU0LFKLJDQODZ IHGHUDOFRXUWPXVWLPSOLFLWO\EHUXOLQJWKDWWKHVWDWHFRXUWZDV WKHUHDUHIRXUUHTXLUHPHQWVIRUFODLPSUHFOXVLRQ WKHSULRU ZURQJLQRUGHUWRSURYLGH3HWHUVRQUHOLHIDQGWKLVLVSUHFLVHO\ DFWLRQPXVWKDYHEHHQGHFLGHGRQWKHPHULWV WKHUHVXOWDQW ZKDWWKH5RRNHU)HOGPDQGRFWULQHGLVDOORZV GHFUHHLQWKHSULRUDFWLRQPXVW KDYHEHHQDILQDOGHFLVLRQ WKH LVVXHV LQ WKH VHFRQG DFWLRQ PXVW KDYH EHHQ HLWKHU 7KHSUREOHPZLWKWKLVDUJXPHQWLVWKDWWKHVWDWHFRXUWGLG UHVROYHG RU FDSDEOH RI UHVROXWLRQ LQ WKH ILUVW DQG ERWK QRWFOHDUO\KROGWKDWWKH&LW\GLGQRWYLRODWHLWV0D\ RUGHU DFWLRQVPXVWLQYROYHWKHVDPHSDUWLHVRUWKHLUSULYLHV6HH 7KH VWDWH FRXUW FHUWDLQO\ FRXOG KDYH IRXQG WKH &LW\ LQ 'LWPRUHY0LFKDOLN1:G 0LFK&W$SS YLRODWLRQRILWV0D\ RUGHUDQGLWGHFOLQHGWKHRSSRUWXQLW\WR %DUDJD &RXQW\ Y 6WDWH 7D[ &RPPjQ 1:G GRVR+RZHYHUWKHsXO\VWDWHFRXUWRUGHULVQRWWHUULEO\ 0LFK&W$SS UHYHUVHGRQRWKHUJURXQGV H[SODQDWRU\DQGWKHVWDWXVRIWKH&LW\jVFRPSOLDQFHZLWKWKH 1:G $V LV HYLGHQW IURP D UHDGLQJ RI WKH WKLUG UHTXLUHPHQW 0LFKLJDQODZGHILQHVFODLPSUHFOXVLRQEURDGO\WRSUHFOXGH 3HWHUVRQ1RYHOWLHVHWDOY 1R 1R 3HWHUVRQ1RYHOWLHVHWDOY &LW\RI%HUNOH\HWDO &LW\RI%HUNOH\HWDO
0D\ RUGHU LV VLPSO\ QRW FOHDU ,W ZRXOG WKHUHIRUH EH KROGLQJWKDWWKH0LFKLJDQ&RXUWRI$SSHDOVZDVLQFRUUHFWLQ HQWLUHO\SRVVLEOHIRUWKHGLVWULFWFRXUWLQWKLVFDVHWRSURYLGH KROGLQJWKDWLWZDVQRWSUHHPSWHG 3HWHUVRQIHGHUDOUHOLHIQRWSUHGLFDWHGXSRQDFRQYLFWLRQWKDW WKHVWDWHFRXUWZDVZURQJDQGIRUWKDWUHDVRQWKH5RRNHU 7KHUHLVDQXQSXEOLVKHGFDVHRIWKLVFLUFXLWWKDWLVVLPLODUO\ )HOGPDQGRFWULQHGRHVQRWSUHFOXGHWKHFRXUWjVDGMXGLFDWLRQ LQVWUXFWLYH,QWKDWFDVHWKLVFRXUWYDFDWHGDGLVWULFWFRXUWjV DSSOLFDWLRQ RI WKH 5RRNHU)HOGPDQ GRFWULQH LQ D VLWXDWLRQ 7KH GLVWULFW FRXUW IRXQG VXSSRUW IRU LWV KROGLQJ WKDW WKH ZKHUH D SODLQWLII KDG ILOHG LQ VWDWH FRXUW D VXLW DOOHJLQJ 5RRNHU)HOGPDQ GRFWULQH DSSOLHG LQ WKLV FDVH LQ DQRWKHU LPSURSHUFRQGXFWE\DFLW\DQGWKHVWDWHFRXUW UHOLHGRQD (DVWHUQ'LVWULFWRI0LFKLJDQILUHZRUNVFDVHo%XUGD%URV SURFHGXUDOPDWWHUWRUHIXVHWRFRQVLGHUWKHSURSULHW\RIWKH ,QF Y :DOVK ) 6XSS G (' 0LFK FLW\jVFRQGXFW6HH:RMFLNY&LW\RI5RPXOXV1R +RZHYHUWKDWFDVHDFWXDOO\SURYLGHVVXSSRUWIRUWKHRSSRVLWH :/DW WK&LU$SULO ,QWKDW UHVXOW7KH3HWHUVRQFRXUWTXRWHGWKH%XUGD%URVFRXUWDV FLUFXPVWDQFH WKLV FRXUW KHOG WKDW WKH SODLQWLIIV ZHUH QRW DSSO\LQJ5RRNHU)HOGPDQZKHUHmWKHSDUW\DJDLQVWZKRPWKH HIIHFWLYHO\VHHNLQJUHYLHZRIWKHVWDWHFRXUWGHFLVLRQEHFDXVH GRFWULQHLVEHLQJDSSOLHGKDGWKHRSSRUWXQLW\WRUDLVHWKHLVVXH WKHVWDWHFRXUWGLGQRWFRQVLGHUWKHUHOHYDQWLVVXH,ELG,QWKH >LQ@ D SULRU VWDWH FRXUW SURFHHGLQJ DQG WKH LVVXH ZDV SUHVHQWFDVHLWLVQRWFOHDUIURPWKHFRXUWjVRUGHUZKHWKHUDQG DGMXGLFDWHGLQWKHSULRUVWDWHFRXUWSURFHHGLQJl3HWHUVRQ WR ZKDW H[WHQW WKH VWDWH FRXUW FRQVLGHUHG WKH LVVXHV RI WKH :/ DW TXRWLQJ%XUGD%URV)6XSS OHJDOLW\RIWKH&LW\jVDFWLRQVDQGZKHWKHUWKH&LW\DFWHGLQ GDW +RZHYHUWKHGLVWULFWFRXUWLQ%XUGD%URVRQO\ FRQWHPSWRIWKHFRXUWjV0D\ RUGHU KRZHYHULWLVFOHDUWKDW DSSOLHGWKHGRFWULQHWRRQHVHWRIWKH%XUGDVjFODLPVoWKHLU WKHGLVWULFWFRXUWj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mD VHULRXV TXHVWLRQl ZRXOG KDYH EHHQ SUHVHQWHGDERXW5RRNHU)HOGPDQDSSOLFDELOLW\LQVXFKDFDVH ,ELG+RZHYHUWKLVFRXUWjVDGRSWLRQRIsXVWLFH0DUVKDOOjV UDWLRQDOH LQ 3HQQ]RLO WKDW D IHGHUDO FODLP LV mLQH[WULFDEO\ LQWHUWZLQHGlZLWKDVWDWHFRXUWMXGJPHQWDQGWKXVLPSOLFDWHV ,Q WKH FRXUVH RI WKH sXO\ RUGHU WKH VWDWH FRXUW KHOG 5RRNHU)HOGPDQZKHQmWKHIHGHUDOFODLPVXFFHHGVRQO\WRWKH XQFRQVWLWXWLRQDOO\ YDJXH D SRUWLRQ RI WKH 0LFKLJDQ ILUHZRUNV VWDWXWH ,W H[WHQWWKDWWKHVWDWHFRXUWZURQJO\GHFLGHGWKHLVVXHVEHIRUH LV WKHUHIRUH SRVVLEOH WKDW WKH VWDWH FRXUW UHIXVHG WR KROG WKH &LW\ LQ LWl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
Reference
- Status
- Published