Overstreet v. Lexington Fayette
Overstreet v. Lexington Fayette
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+,/,3 ' 29(5675((7 ; 3ODLQWLII$SSHOODQW 1R Y ! /(;,1*721)$<(77( 85%$1 &2817< *29(510(17 'HIHQGDQW$SSHOOHH 1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW/H[LQJWRQ 1Rn.DUO6)RUHVWHU&KLHI'LVWULFWsXGJH $UJXHG sXQH 'HFLGHGDQG)LOHG 6HSWHPEHU %HIRUH .(,7+DQG'$8*+75(<&LUFXLWsXGJHV 0$5%/(<'LVWULFWsXGJH
7KH +RQRUDEOH $OJHQRQ / 0DUEOH\ 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH 6RXWKHUQ 'LVWULFW RI 2KLR VLWWLQJ E\ GHVLJQDWLRQ
2YHUVWUHHWY/H[LQJWRQ)D\HWWH 1R 8UEDQ&RXQW\*RYjW
BBBBBBBBBBBBBBBBB &2816(/ $5*8(' sDPHV 0 0RUULV 0255,6 0255,6 /H[LQJWRQ.HQWXFN\IRU$SSHOODQW7HUU\6HOODUV+(15< :$7=*$5'1(56(//$56 *$5'1(5/H[LQJWRQ .HQWXFN\ IRU $SSHOOHH 21 %5,() sDPHV 0 0RUULV 0255,6 0255,6/H[LQJWRQ.HQWXFN\IRU$SSHOODQW 7HUU\6HOODUV+(15<:$7=*$5'1(56(//$56 *$5'1(5/H[LQJWRQ.HQWXFN\IRU$SSHOOHH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB $/*(121 / 0$5%/(< 'LVWULFW sXGJH 3ODLQWLII $SSHOODQW3KLOLS'2YHUVWUHHWDSSHDOVWKHGLVWULFWFRXUWjV RUGHU GHQ\LQJ KLV PRWLRQ IRU D mWHPSRUDU\ LQMXQFWLRQl WR SURKLELWKLVHPSOR\HUDJRYHUQPHQWDOHQWLW\IURPPDQGDWLQJ SXEOLFGLVFORVXUHRIUHDOHVWDWHKROGLQJVE\FHUWDLQGHSDUWPHQW HPSOR\HHVDQGWKHLUIDPLO\PHPEHUV0U2YHUVWUHHWDVVLJQV HUURUWRWKHGLVWULFWFRXUWjVUXOLQJGHQ\LQJWKHPRWLRQIRUD WHPSRUDU\LQMXQFWLRQEDVHGRQWKDWFRXUWjVILQGLQJWKDW0U 2YHUVWUHHWLVXQOLNHO\WRVXFFHHGRQWKHPHULWVRIKLVFDVH 7KLV&RXUWjVDSSHOODWHMXULVGLFWLRQLVSURSHUXQGHU86& D %DVHGRQWKHIROORZLQJDQDO\VLVWKH&RXUW$)),506WKH UXOLQJRIWKHGLVWULFWFRXUW
$OWKRXJK 3ODLQWLII$SSHOODQW VW\OHG KLV PRWLRQ DV RQH IRU D mWHPSRUDU\ LQMXQFWLRQl WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH GR QRW SURYLGH IRU D mWHPSRUDU\ LQMXQFWLRQl 7KHUHIRUH WKH GLVWULFW FRXUW FRQVWUXHG 3ODLQWLII$SSHOODQWjV PRWLRQ DV D PRWLRQ IRU D WHPSRUDU\ UHVWUDLQLQJ RUGHU SXUVXDQW WR )HG 5 &LY 3 E 2Q DSSHDO KRZHYHU WKH SDUWLHV KDYH WUHDWHG WKH PRWLRQ DV RQH IRU D SUHOLPLQDU\ LQMXQFWLRQ SXUVXDQW WR )HG 5 &LY 3 D 1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 8UEDQ&RXQW\*RYjW
,%$&.*5281' $)DFWXDO%DFNJURXQG 3ODLQWLII$SSHOODQW3KLOLS'2YHUVWUHHWLVHPSOR\HGE\ 'HIHQGDQW$SSHOOHH WKH /H[LQJWRQ)D\HWWH 8UEDQ &RXQW\ *RYHUQPHQW m/)8&*l LQLWV'LYLVLRQRI(QJLQHHULQJ0U 2YHUVWUHHWGHVFULEHVKLVMREGXWLHVDVSULPDULO\FRQVLVWLQJRI SORWWLQJPDSFRRUGLQDWHVDVDFRPSXWHURSHUDWRU 2Q2FWREHUWKH/)8&*LVVXHGD5HDO3URSHUW\ 'LVFORVXUH 3ROLF\ m3ROLF\l 7KH VWDWHG SXUSRVHV RI WKH 3ROLF\ZHUHWRSURPRWHSXEOLFFRQILGHQFHLQWKHLQWHJULW\RI WKH ORFDO JRYHUQPHQW LQ )D\HWWH &RXQW\ .HQWXFN\ DQG WR DYRLG WKH SHUFHSWLRQ RI D FRQIOLFW EHWZHHQ JRYHUQPHQW HPSOR\HHVj SULYDWH LQWHUHVWV DQG WKHLU SXEOLF GXWLHV 6SHFLILFDOO\ WKH 3ROLF\ VWDWHG WKDW LWV SXUSRVHV ZHUH LQWHU DOLD WRSUHYHQWDFWXDORUSHUFHLYHGFRQIOLFWVE\RIILFHUV DQG HPSOR\HHV RI WKH >/)8&*@ WR LQVXUH WKDW KRXVLQJLQ)D\HWWH&RXQW\LVVDIHVDQLWDU\DQGKDELWDEOH DQG WR XQLI\ WKH H[LVWLQJ SROLFLHV DQG SURFHGXUHV GHDOLQJ ZLWK FRQIOLFWV RI LQWHUHVW RI LQVSHFWRUV LQ WKH 'LYLVLRQ RI &RGH (QIRUFHPHQW 'LYLVLRQ RI %XLOGLQJ ,QVSHFWLRQDQGWKH)LUH3UHYHQWLRQ%XUHDX 7KH3ROLF\DSSOLHVWRHPSOR\HHVLQWKH/)8&*jV'LYLVLRQVRI &RGH (QIRUFHPHQW %XLOGLQJ ,QVSHFWLRQ 3ODQQLQJ (QJLQHHULQJDQGWKH/)8&*jV)LUH3UHYHQWLRQ%XUHDXDQG WKHLULPPHGLDWHIDPLOLHV7KHWHUPmLPPHGLDWHIDPLOLHVlLV GHILQHGWRLQFOXGHWKHHPSOR\HHjVmVSRXVHXQHPDQFLSDWHG FKLOGUHVLGLQJLQ>WKH@KRXVHKROGRUDSHUVRQFODLPHGE\>WKH HPSOR\HHRUWKHHPSOR\HHjVVSRXVH@DVDGHSHQGHQWIRUWD[ SXUSRVHVl 7KH 3ROLF\ SURKLELWV HPSOR\HHV LQ FHUWDLQ GLYLVLRQV VXFK DV &RGH (QIRUFHPHQW IURP RZQLQJ UHDO SURSHUW\LQ)D\HWWH&RXQW\RWKHUWKDQSURSHUW\LQZKLFKWKRVH HPSOR\HHV UHVLGH 7KH 3ROLF\ SHUPLWV RZQHUVKLS RI UHDO SURSHUW\E\HPSOR\HHVLQRWKHUGLYLVLRQVVXFKDVWKH'LYLVLRQ RI (QJLQHHULQJ EXW UHTXLUHV HPSOR\HHV ZKR GR RZQ UHDO 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 1R 1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 8UEDQ&RXQW\*RYjW 8UEDQ&RXQW\*RYjW
SURSHUW\ WR GLVFORVH FHUWDLQ LQIRUPDWLRQ DERXW WKHLU ZRXOGEHYLRODWHGE\WKHGHQLDORIWKHLQMXQFWLRQ7KH&RXUW RZQHUVKLS ILQGVKRZHYHUWKDWWKHSXEOLFLQWHUHVWOLHVZLWKWKHGHQLDORI 0U2YHUVWUHHWjVUHTXHVWIRUDQLQMXQFWLRQ)LUVWZKLOHWKH 3XUVXDQWWRWKH3ROLF\HPSOR\HHVZKRDUHDOORZHGWRRZQ SXEOLFFOHDUO\KDVLQWHUHVWLQYLQGLFDWLQJFRQVWLWXWLRQDOULJKWV UHDOSURSHUW\EXWDUHUHTXLUHGWRGLVFORVHLQIRUPDWLRQDERXW LW LV XQOLNHO\ WKDW 0U 2YHUVWUHHW FDQ GHPRQVWUDWH WKDW DQ\ VXFKSURSHUW\PXVWFRPSOHWHDIRUPHQWLWOHGm'LVFORVXUHRI FRQVWLWXWLRQDOULJKWVDUHLPSOLFDWHGRQWKHVHIDFWV6HFRQG 5HDO3URSHUW\DQG%XVLQHVV,QWHUHVWVl m'LVFORVXUH)RUPl WKHSXEOLFLQWHUHVWOLHVLQSURPRWLQJSXEOLFFRQILGHQFHLQWKH 6HFWLRQ,RIWKH'LVFORVXUH)RUPUHTXLUHVWKHHPSOR\HHWROLVW LQWHJULW\RIORFDOJRYHUQPHQWDQGLQDYRLGLQJWKHSHUFHSWLRQ WKH DGGUHVVHV DQG RZQHUV RI UHFRUG IRU DOO UHDO HVWDWH LQ RI D FRQIOLFW RI LQWHUHVW EHWZHHQ JRYHUQPHQW HPSOR\HHVj )D\HWWH&RXQW\LQZKLFKWKHHPSOR\HHRUDPHPEHURIKLV SULYDWH LQWHUHVWV DQG WKHLU SXEOLF GXWLHV %RWK RI WKHVH LPPHGLDWH IDPLO\ KDV DQ LQWHUHVW 7KH HPSOR\HH LV DOVR LQWHUHVWVDUHIXUWKHUHGE\WKHGHQLDORIWKHLQMXQFWLRQVRXJKW UHTXLUHGWROLVWWKHQDPHVRIRWKHULQGLYLGXDOVZKRKDYHDQ E\3ODLQWLII$SSHOODQW LQWHUHVWLQWKHSURSHUW\DQGWRLQGLFDWHWKHW\SHRISURSHUW\ 6HFWLRQ,,RIWKHIRUPUHTXLUHVWKHHPSOR\HHWROLVWWKHQDPHV 7KHUHIRUHWKH&RXUWILQGVWKDWWKHSXEOLFLQWHUHVWOLHVLQWKH DQGDGGUHVVHVRIDQ\EXVLQHVVRZQLQJSURSHUW\LQ)D\HWWH GHQLDORI3ODLQWLII$SSHOODQWjVUHTXHVWIRUDQLQMXQFWLRQ &RXQW\LQZKLFKWKHHPSOR\HHRUDPHPEHURIKLVLPPHGLDWH IDPLO\KDVDQRZQHUVKLSLQWHUHVWWKDWH[FHHGVWKHOHVVHURIWHQ 9&21&/86,21 SHUFHQWRUILYHWKRXVDQGGROODUVLQYDOXH7KHHPSOR\HHPXVW VSHFLI\WKHW\SHRIEXVLQHVVDQGSURYLGHDJHQHUDOGHVFULSWLRQ )RUDOORIWKHIRUHJRLQJUHDVRQVWKLV&RXUWFRQFOXGHVWKDW RIWKHEXVLQHVVDQGDOVRPXVWOLVWWKHQDPHVRIFXVWRPHUV WKH GLVWULFW FRXUW GLG QRW HUU LQ LWV GHQLDO RI 3ODLQWLII ZKRGREXVLQHVVZLWKWKHHPSOR\HHjVGLYLVLRQ6HFWLRQ,,,RI $SSHOODQWjV 0RWLRQ IRU D 7HPSRUDU\ ,QMXQFWLRQ DQG WKHIRUPUHTXLUHVWKHHPSOR\HHWROLVWWKHQDPHVDGGUHVVHV WKHUHIRUH$)),506WKHGLVWULFWFRXUWj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
m%XVLQHVVl LV GHILQHG DV mDQ\ FRUSRUDWLRQ SDUWQHUVKLS OLPLWHG OLDELOLW\ FRPSDQ\ VROH SURSULHWRUVKLS ILUP HQWHUSULVH IUDQFKLVH DVVRFLDWLRQ RUJDQL]DWLRQ VHOIHPSOR\HG LQGLYLGXDO KROGLQJ FRPSDQ\ MRLQW VWRFN FRPSDQ\ UHFHLYHUVKLS WUXVW SURIHVVLRQDO VHUYLFH FRUSRUDWLRQ RU OLPLWHG OLDELOLW\ FRPSDQ\ RU DQ\ OHJDO HQWLW\ WKURXJK ZKLFK EXVLQHVV LV FRQGXFWHG IRU SURILWl 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 1R 1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 8UEDQ&RXQW\*RYjW 8UEDQ&RXQW\*RYjW
IURPWHPSRUDU\XQHPSOR\PHQWSHQGLQJDUELWUDWLRQ ,QGHHG LVJLIWHGRULVRWKHUZLVHFRQYH\HGDQLQWHUHVWLQUHDOSURSHUW\ m>W@KH ORVV RI D MRE LV TXLQWHVVHQWLDOO\ UHSDUDEOH E\ PRQH\ LQ)D\HWWH&RXQW\RUDQRZQHUVKLSLQWHUHVWLQDEXVLQHVVWKDW GDPDJHVl0LQQHVRWD$VVj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jV2IILFHDQGWKH39$2IILFHWKH 7KH3ROLF\RULJLQDWHGEHFDXVHRIDZLGHVSUHDGSXEOLFEHOLHI UHTXHVWHG LQIRUPDWLRQ LV SXEOLF UHFRUG DQG FDQ EH RIRQJRLQJFRUUXSWLRQDWWKH/)8&*DULVLQJIURPDFRQIOLFW REWDLQHGWKURXJKWKRVHRIILFHV$Q\LQIRUPDWLRQ DVLW RI LQWHUHVW EHWZHHQ WKH HPSOR\HHVj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j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jW 8UEDQ&RXQW\*RYjW
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jV ULJKW WR SULYDF\ D YLRODWLRQ RI WKH )RXUWK LUUHSDUDEOH KDUP EHFDXVH 'HIHQGDQW$SSHOOHHjV GLVFORVXUH $PHQGPHQWEDVHGRQDQXQUHDVRQDEOHVHDUFK DYLRODWLRQ UHTXLUHPHQWYLRODWHVKLV)RXUWKDQG)RXUWHHQWK$PHQGPHQW RIWKH)RXUWHHQWK$PHQGPHQWEDVHGRQWKHIDFWWKDWWKH5HDO ULJKWV +H DOVR FODLPV WKDW DEVHQW WKH LVVXDQFH RI DQ (VWDWH 'LVFORVXUH SROLF\ LV LPSHUPLVVLEO\ YDJXH D LQMXQFWLRQKHZLOOVXIIHULUUHSDUDEOHKDUPEHFDXVHKHZLOOEH YLRODWLRQ RI WKH )RXUWHHQWK $PHQGPHQW EDVHG RQ DQ UHTXLUHG WR FKRRVH EHWZHHQ GLVFORVLQJ FHUWDLQ SHUVRQDO LQIULQJHPHQW RI 0U 2YHUVWUHHWjV ULJKW WR VXEVWDQWLYH GXH LQIRUPDWLRQDQGEHLQJWHUPLQDWHGIURPKLVHPSOR\PHQW SURFHVV DQG D YLRODWLRQ RI WKH )RXUWHHQWK $PHQGPHQW EDVHGRQDQLQIULQJHPHQWRI0U2YHUVWUHHWj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jVPRWLRQ 7KH &RXUW FRQFOXGHV WKDW 0U 2YHUVWUHHW ZLOO QRW VXIIHU RQ1RYHPEHU2Q'HFHPEHUWKHGLVWULFW LUUHSDUDEOHKDUPE\YLUWXHRIWKHIDFWWKDWKHPD\ORVHKLVMRE FRXUWHQWHUHGDQRUGHUGHQ\LQJ0U2YHUVWUHHWjV0RWLRQIRUD ZKLOHWKLVOLWLJDWLRQLVSHQGLQJ7KHIDFWWKDWDQLQGLYLGXDO 7HPSRUDU\ ,QMXQFWLRQ 0U 2YHUVWUHHW ILOHG D 1RWLFH RI PD\ORVHKLVLQFRPHIRUVRPHH[WHQGHGSHULRGRIWLPHGRHV $SSHDOIURPWKDWRUGHURQ'HFHPEHU$WWKHVDPH QRWUHVXOWLQLUUHSDUDEOHKDUPDVLQFRPHZURQJO\ZLWKKHOG WLPH KH DOVR ILOHG D 0RWLRQ IRU 7HPSRUDU\ ,QMXQFWLRQ PD\EHUHFRYHUHGWKURXJKPRQHWDU\GDPDJHVLQWKHIRUPRI 3HQGLQJ $SSHDO ERWK ZLWK WKH GLVWULFW FRXUW DQG ZLWK WKLV EDFN SD\ 6DPSVRQ Y 0XUUD\ 86 &RXUW 2Q 'HFHPEHU ERWK FRXUWV UXOHG RQ WKH ILQGLQJWKDWmWKHWHPSRUDU\ORVVRILQFRPHXOWLPDWHO\WREH PRWLRQ7KHGLVWULFWFRXUWGHQLHG0U2YHUVWUHHWjV0RWLRQIRU UHFRYHUHGGRHVQRWXVXDOO\FRQVWLWXWHLUUHSDUDEOHLQMXU\l VHH D 7HPSRUDU\ ,QMXQFWLRQ 3HQGLQJ $SSHDO 7KLV &RXUW SHU $OXPLQXP:RUNHUV,QWjO8QLRQ$)/&,2/RFDO8QLRQ1R &KLHI sXGJH 0DUWLQ KRZHYHU JUDQWHG 0U 2YHUVWUHHWjV Y&RQVRO$OXPLQXP&RUS )G WK&LU 0RWLRQ LQ SDUW DQG HQMRLQHG 'HIHQGDQW$SSHOOHH IURP ILQGLQJWKDWHPSOR\HHVGLGQRWVXIIHULUUHSDUDEOHKDUP 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 1R 1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 8UEDQ&RXQW\*RYjW 8UEDQ&RXQW\*RYjW
$SSHOODQWjVYDJXHQHVVDUJXPHQWVDUHQRWSURSHUO\EHIRUH LQLWLDWLQJ DGPLQLVWUDWLYH FKDUJHV IRU 0U 2YHUVWUHHWjV WKLV&RXUWm,WLVZHOOVHWWOHGWKDWWKLVFRXUWZLOOQRWFRQVLGHU GLVPLVVDO LQ UHVSRQVH WR KLV UHIXVDO WR FRPSOHWH VLJQ DQG DUJXPHQWVUDLVHGIRUWKHILUVWWLPHRQDSSHDOXQOHVVRXUIDLOXUH VXEPLWWKH'LVFORVXUH)RUPSHQGLQJWKLVDSSHDO WR FRQVLGHU WKH LVVXH ZLOO UHVXOW LQ D SODLQ PLVFDUULDJH RI MXVWLFHl%DLOH\Y)OR\G&RXQW\%GRI(GXF)G ,,35(/,0,1$5<,668(6 WK&LU FLWLQJ5RXVKY.)&1DWjO0JPW&R )G WK&LU VHH:KLWHY$QFKRU0RWRU $sXULVGLFWLRQ )UHLJKW,QF )G WK&LU m7KLVFRXUW ZLOOQRWGHFLGHLVVXHVRUFODLPVQRWOLWLJDWHGEHIRUHWKHGLVWULFW 0U2YHUVWUHHWILOHGDPRWLRQIRUDmWHPSRUDU\LQMXQFWLRQl FRXUWl $OWKRXJK0U2YHUVWUHHWUHIHUUHGWRWKHYDJXHQHVV ZLWKWKHGLVWULFWFRXUW%HFDXVHWKH)HGHUDO5XOHVRI&LYLO RIWKH3ROLF\LQKLV&RPSODLQWKHIDLOHGWRDUJXHWKDWLVVXH 3URFHGXUH GR QRW UHFRJQL]H WKH H[LVWHQFH RI D mWHPSRUDU\ EHIRUH WKH GLVWULFW FRXUW HLWKHU LQ KLV PRWLRQV RU DW RUDO LQMXQFWLRQlWKHGLVWULFWFRXUWWUHDWHGWKHPRWLRQDVDPRWLRQ DUJXPHQW)XUWKHUPRUHKHIDLOHGWRUDLVHWKHLVVXHEHIRUHWKLV IRUDWHPSRUDU\UHVWUDLQLQJRUGHU &RXUWXQWLOKHILOHGKLVUHSO\EULHI$QDUJXPHQWUDLVHGIRU WKHILUVWWLPHLQDUHSO\EULHIZLOOQRWEHFRQVLGHUHGE\WKLV $ GLVWULFW FRXUWjV GHQLDO RI D PRWLRQ IRU D WHPSRUDU\ &RXUW:ULJKWY+ROEURRN )G WK&LU UHVWUDLQLQJ RUGHU JHQHUDOO\ LV QRW DSSHDODEOH :LOVRQ Y VSHFLI\LQJ WKDW WKH DSSOLFDWLRQ RI WKLV UXOH LV :LONLQVRQ)HG$SS[:/DW mSDUWLFXODUO\DSSURSULDWHZKHQWKHLVVXHUDLVHGIRUWKHILUVW WK&LUsDQ FLWLQJ2IILFHRI3HUV0JPWY$P WLPHLQUHSO\LVEDVHGODUJHO\RQWKHIDFWVDQGFLUFXPVWDQFHV )HGjQ RI *RYjW (PSOR\HHV $)/&,2 86 RIWKHFDVHl 3DUWLFXODUO\KHUHZKHUHWKHIDFWVUHOLHGXSRQ DQG%GRI*RYHUQRUVRI)HG5HVHUYH6\VY ZHUHSUHVHQWHGQHLWKHUWRWKHGLVWULFWFRXUWQRUWRWKLV&RXUW '/*)LQ&RUS )G WK&LU 6XFKD XQWLO3ODLQWLII$SSHOODQWILOHGKLVUHSO\LWZRXOGEHLPSURSHU UXOLQJLVDSSHDODEOHKRZHYHULILWLVWDQWDPRXQWWRDUXOLQJRQ IRUWKH&RXUWWRILQGWKDWWKHGLVWULFWFRXUWHUUHGLQLWVIDLOXUH DSUHOLPLQDU\LQMXQFWLRQ,GDW FLWLQJ0DQERXUQH,QF WRFRQVLGHUWKLVQHZO\GHYHORSHGYDJXHQHVVDUJXPHQW Y&RQUDG )GQ WK&LU
)RUDOORIWKHIRUHJRLQJUHDVRQVWKH&RXUWILQGVWKDWWKH 7KLV &RXUW ILQGV WKDW 3ODLQWLII$SSHOODQWjV 0RWLRQ IRU D GLVWULFW FRXUW GLG QRW HUU LQ LWV FRQFOXVLRQ WKDW 3ODLQWLII 7HPSRUDU\ ,QMXQFWLRQ LV WDQWDPRXQW WR D PRWLRQ IRU D $SSHOODQWLVXQOLNHO\WRVXFFHHGRQWKHPHULWVRIKLVFODLP SUHOLPLQDU\LQMXQFWLRQ$OWKRXJKWKHGLVWULFWFRXUWWUHDWHGWKH PRWLRQDVRQHIRUDWHPSRUDU\UHVWUDLQLQJRUGHUERWKSDUWLHV %,UUHSDUDEOH+DUP KDYH WUHDWHG WKH PRWLRQ DQG WKH GLVWULFW FRXUWjV UXOLQJ WKHUHRQDVDPRWLRQIRUDSUHOLPLQDU\LQMXQFWLRQ,QGHHGLQ $ SODLQWLIIjV KDUP IURP WKH GHQLDO RI D SUHOLPLQDU\ WKHLUUHVSHFWLYHSOHDGLQJVWKHSDUWLHVVHWIRUWKDQGEDVHWKHLU LQMXQFWLRQ LV LUUHSDUDEOH LI LW LV QRW IXOO\ FRPSHQVDEOH E\ DUJXPHQWVXSRQWKHHOHPHQWVWKDWPXVWEHVKRZQIRUDFRXUW PRQHWDU\GDPDJHV%DVLFRPSXWHU&RUSY6FRWW )G WRJUDQWDSUHOLPLQDU\LQMXQFWLRQ)XUWKHUPRUHWKHGLVWULFW WK &LU &RXUWV KDYH DOVR KHOG WKDW D FRXUW WUHDWHG 3ODLQWLII$SSHOODQWjV 0RWLRQ IRU 7HPSRUDU\ SODLQWLIIFDQGHPRQVWUDWHWKDWDGHQLDORIDQLQMXQFWLRQZLOO ,QMXQFWLRQ 3HQGLQJ $SSHDO VW\OHG LQ HVVHQWLDOO\ WKH VDPH FDXVHLUUHSDUDEOHKDUPLIWKHFODLPLVEDVHGXSRQDYLRODWLRQ PDQQHUDVWKHRULJLQDOPRWLRQDVDPRWLRQIRUDSUHOLPLQDU\ RIWKHSODLQWLIIjVFRQVWLWXWLRQDOULJKWV6HHHJ&RQQHFWLRQ LQMXQFWLRQSHQGLQJDSSHDO 'LVWULE &R Y 5HQR )G WK &LU 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 1R 1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 8UEDQ&RXQW\*RYjW 8UEDQ&RXQW\*RYjW
7KHUHIRUHWKH&RXUWFRQVWUXHV3ODLQWLII$SSHOODQWjV0RWLRQ 'LVFORVXUH )RUP LV OLNHO\ WR EH IRXQG UHDVRQDEOH DQG IRU D 7HPSRUDU\ ,QMXQFWLRQ DQG WKH GLVWULFW FRXUWjV UXOLQJ WKHUHIRUH LQ FRPSOLDQFH ZLWK WKH VWULFWXUHV RI WKH )RXUWK WKHUHRQ DV D PRWLRQ IRU D SUHOLPLQDU\ LQMXQFWLRQ SURSHUO\ $PHQGPHQW $V GLVFXVVHG DERYH ZLWK UHIHUHQFH WR 0U SRVWXUHGIRUUHYLHZE\WKLV&RXUW 2YHUVWUHHWjVULJKWWRSULYDF\FODLPWKHGLVWULFWFRXUWLVOLNHO\ WR FRQFOXGH WKDW WKH 3ROLF\ DQG 'LVFORVXUH )RUP DUH %0RWLRQIRUD7HPSRUDU\,QMXQFWLRQ3HQGLQJ$SSHDO UHDVRQDEOHLQOLJKWRIWKH/)8&*jVLQWHUHVWVLQSUHYHQWLQJ FRUUXSWLRQDQGWKHDSSHDUDQFHRILPSURSULHW\ZKHQZHLJKHG 2Q'HFHPEHU3ODLQWLII$SSHOODQWILOHGD0RWLRQ DJDLQVW 0U 2YHUVWUHHWjV OLPLWHG H[SHFWDWLRQ RI SULYDF\ LQ IRUD7HPSRUDU\,QMXQFWLRQ3HQGLQJ$SSHDOZLWKWKLV&RXUW LQIRUPDWLRQUHJDUGLQJWKHUHDOSURSHUW\WKDWKHDQGPHPEHUV 2Q'HFHPEHUWKLV&RXUWSHU&KLHIsXGJH0DUWLQ RIKLVLPPHGLDWHIDPLO\RZQ6LJQLILFDQWO\WKH/)8&*KDV JUDQWHGWKDWPRWLRQLQSDUWDQGHQMRLQHG'HIHQGDQW$SSHOOHH OLPLWHGWKHDSSOLFDWLRQRIWKH3ROLF\WRHPSOR\HHVLQWKRVH IURP LQLWLDWLQJ DGPLQLVWUDWLYH FKDUJHV IRU 0U 2YHUVWUHHWjV GHSDUWPHQWVWKDWPD\KDYHDFFHVVWRSULYLOHJHGLQIRUPDWLRQ GLVPLVVDO LQ UHVSRQVH WR KLV UHIXVDO WR FRPSOHWH VLJQ DQG DQG PD\ XVH WKHLU SURIHVVLRQDO UROHV WR WKHLU RZQ SHUVRQDO VXEPLW WKH 'LVFORVXUH )RUP SHQGLQJ WKLV DSSHDO 0U DGYDQWDJH 2YHUVWUHHWQRZFRQWHQGVWKDWWKLVSDQHOVKRXOGVLPSO\H[WHQG WKHOLIHRIWKH'HFHPEHURUGHUEHFDXVH&KLHIsXGJH 7KHUHIRUHWKHGLVWULFWFRXUWGLGQRWHUULQLWVFRQFOXVLRQWKDW 0DUWLQKDVDOUHDG\UXOHGRQWKHPHULWVRI3ODLQWLII$SSHOODQWj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mQHFHVVDU\LQFLGHQWlWRWKH&RXUWjVSRZHUWRLVVXH LWVEULHIDUJXHGWKDWWKH5HDO3URSHUW\'LVFORVXUH3ROLF\LV ZULWVWRSURWHFWDSSHOODWHMXULVGLFWLRQXQGHU86& QRWLPSHUPLVVLEO\YDJXH'HIHQGDQW$SSHOOHHSUHVXPDEO\ FLWDWLRQRPLWWHG ,QJUDQWLQJVXFKDQLQMXQFWLRQWKH&RXUW DGGUHVVHGWKLVLVVXHEHFDXVHLWZDVPHQWLRQHGLQ 3ODLQWLII LVWRHQJDJHLQWKHVDPHDQDO\VLVWKDWLWGRHVLQUHYLHZLQJWKH $SSHOODQWj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jV PRWLRQ ZDV JUDQWHG LQ SDUW UDWKHU WKDQ LQ LWV DUJXPHQW EHIRUH WKH GLVWULFW FRXUW RQ KLV 0RWLRQ IRU D HQWLUHW\ EHFDXVH WKH UXOLQJ DSSOLHG RQO\ WR 3ODLQWLII$SSHOODQW DQG QRW WR 7HPSRUDU\,QMXQFWLRQRULQKLVILQDOEULHIWRWKLV&RXUW WKH RWKHU HPSOR\HHV RQ ZKRVH EHKDOI 0U 2YHUVWUHHW VRXJKW WKH WHPSRUDU\ LQMXQFWLYH UHOLHI 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 1R 1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 8UEDQ&RXQW\*RYjW 8UEDQ&RXQW\*RYjW
7KH&RXUWILQGVWKDWWKHGLVWULFWFRXUWFRUUHFWO\FRQFOXGHG $OWKRXJK XQGHU :DONHU 0U 2YHUVWUHHW LV FRUUHFW WKDW WKDW3ODLQWLII$SSHOODQWLVXQOLNHO\WRVXFFHHGRQWKHPHULWVRI &KLHIsXGJH0DUWLQjVRUGHUZDVDWOHDVWLPSOLFLWO\EDVHGRQ WKLV FODLP $OWKRXJK VHDUFKHV DQG VHL]XUHV FRQGXFWHG E\ WKH FRQFOXVLRQ WKDW KH KDG PHW WKH UHTXLUHPHQWV IRU WKH JRYHUQPHQW HPSOR\HUV DUH VXEMHFW WR WKH VWULFWXUHV RI WKH LVVXDQFH RI D SUHOLPLQDU\ LQMXQFWLRQ WKLV SDQHO LV )RXUWK$PHQGPHQWWKHGLVWULFWFRXUWLVOLNHO\WRILQGDIWHUD QRQHWKHOHVVQRWERXQGWRH[WHQGWKHOLIHRIWKDWRUGHU7RWKH WULDORQWKHPHULWVWKDWWKH)RXUWK$PHQGPHQWGRHVQRWDSSO\ FRQWUDU\ &KLHI sXGJH 0DUWLQjV RUGHU E\ LWV RZQ WHUPV XQGHUWKHVHSDUWLFXODUFLUFXPVWDQFHVEHFDXVH0U2YHUVWUHHW H[SLUHVXSRQWKHGLVSRVLWLRQRIWKLVDSSHDOIURPWKHGLVWULFW KDVQRUHDVRQDEOHH[SHFWDWLRQRISULYDF\LQWKHLQIRUPDWLRQ FRXUWjV 'HFHPEHU GHQLDO RI 3ODLQWLII$SSHOODQWjV VRXJKWE\WKH/)8&*,Q%DUU\Y&LW\RI1HZ<RUN PRWLRQIRUDWHPSRUDU\LQMXQFWLRQ6HH)HG7UDGH&RPPjQ )G G&LU WKH6HFRQG&LUFXLWFRQVLGHUHGWKH Y)RRG7RZQ6WRUHV,QF)G WK&LU FRQVWLWXWLRQDOLW\RIDILQDQFLDOGLVFORVXUHVWDWXWHDGRSWHGE\ m7KHLQMXQFWLRQSHQGLQJWKHDSSHDOH[SLUHVE\LWVRZQWHUPV WKH &LW\ RI 1HZ <RUN WKDW DSSOLHG WR PRVW HOHFWHG DQG XSRQGLVSRVLWLRQRIWKHDSSHDOl )XUWKHUPRUH&KLHIsXGJH DSSRLQWHGRIILFLDOVFDQGLGDWHVIRU&LW\RIILFHDQGDOOFLYLO 0DUWLQjVUXOLQJKDVQRUHVMXGLFDWDHIIHFWEHFDXVHLWGRHVQRW VHUYLFHHPSOR\HHVZKRHDUQHGDQDQQXDOVDODU\RIRU FRQVWLWXWHDILQDODGMXGLFDWLRQRIWKHPHULWVRIDQLVVXH,G DERYH ,G DW 3XUVXDQW WR WKH VWDWXWH FRYHUHG 7KHSXUSRVHRIWKDWRUGHUZDVWRPDLQWDLQWKHVWDWXVTXRRQO\ HPSOR\HHV DQG WKHLU VSRXVHV ZHUH UHTXLUHG WR SURYLGH XQWLOWKLVSDQHOUXOHGXSRQ3ODLQWLII$SSHOODQWjVDSSHDOIURP H[WHQVLYH LQIRUPDWLRQ DERXW WKHLU SHUVRQDO ILQDQFHV WKHGLVWULFWFRXUWjVRUGHU LQFOXGLQJ LQWHU DOLD mWKH LGHQWLW\ RI SURIHVVLRQDO RUJDQL]DWLRQVIURPZKLFKWKHHPSOR\HHRUDVSRXVHGHULYHV ,,,67$1'$5'2)5(9,(: RU PRUH LQ LQFRPH GXULQJ WKH SUHFHGLQJ \HDU WKH VRXUFHRIFDSLWDOJDLQVRIRUPRUHRWKHUWKDQIURPWKH 7KHJUDQWRUGHQLDORIDSUHOLPLQDU\LQMXQFWLRQLVUHYLHZHG VDOHRIDUHVLGHQFH WKHVRXUFHRIJLIWVRUKRQRUDULDRIRU IRUDQDEXVHRIGLVFUHWLRQ0LFKLJDQ%HOO7HO&RY(QJOHU PRUH LQGHEWHGQHVVLQH[FHVVRIWKDWLVRXWVWDQGLQJIRU )G WK &LU FLWDWLRQV RPLWWHG GD\VRUPRUH DQGWKHQDWXUHRILQYHVWPHQWVZRUWK $FFRUGLQJO\ WKH GLVWULFWFRXUWjVILQGLQJVRIIDFWZLOOVWDQG RUPRUHl,GDW'LVFXVVLQJWKHSODLQWLIIHPSOR\HHVj XQOHVVIRXQGWREHFOHDUO\HUURQHRXVEXWLWVOHJDOFRQFOXVLRQV FODLPV WKDW WKH ODZ YLRODWHG WKH )RXUWK $PHQGPHQW WKH DUHUHYLHZHGGHQRYR,G FLWDWLRQVRPLWWHG 6HFRQG&LUFXLWVWDWHGWKDWLWZDVmGRXEWIXOZKHWKHUWKH )RXUWK$PHQGPHQWDSSOLHVLQWKLVFRQWH[W>3@ODLQWLIIV ,QGHWHUPLQLQJZKHWKHUWRLVVXHDSUHOLPLQDU\LQMXQFWLRQ SODLQO\KDYHQRUHDVRQDEOHH[SHFWDWLRQWKDWWKHLQIRUPDWLRQ WKH&RXUWPXVWH[DPLQHIRXUIDFWRUV ZKHWKHUWKHPRYDQW VRXJKWFDQEHZLWKKHOGIURPWKHLUHPSOR\HUVl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jQ )G WK&LU HQEDQF 7KHVH RISULYDF\LQWKHLQIRUPDWLRQSHUWDLQLQJWRKLVUHDOSURSHUW\ IDFWRUV DUH QRW SUHUHTXLVLWHV EXW DUH IDFWRUV WKDW DUH WR EH KROGLQJVDQ\VHDUFKFRQGXFWHGE\YLUWXHRIWKH3ROLF\DQG EDODQFHG DJDLQVW HDFK RWKHU 8QLWHG )RRG &RPPHUFLDO 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 1R 1R 2YHUVWUHHWY/H[LQJWRQ)D\HWWH 8UEDQ&RXQW\*RYjW 8UEDQ&RXQW\*RYjW
:RUNHUV8QLRQ/RFDO Y6RXWKZHVW2KLR5HJjO7UDQVLW )RXUWK$PHQGPHQWo8QUHDVRQDEOH6HDUFK $XWK)G WK&LU FLWDWLRQRPLWWHG $ SUHOLPLQDU\ LQMXQFWLRQ LV DQ H[WUDRUGLQDU\ UHPHG\ ZKLFK 0U2YHUVWUHHWDUJXHVWKDWWKH/)8&*jV'LVFORVXUH3ROLF\ VKRXOGEHJUDQWHGRQO\LIWKHPRYDQWFDUULHVKLVRUKHUEXUGHQ FRQVWLWXWHV DQ XQUHDVRQDEOH VHDUFK DQG DQ LQYDVLRQ RI KLV RISURYLQJWKDWWKHFLUFXPVWDQFHVFOHDUO\GHPDQGLW/HDU\ SULYDF\LQYLRODWLRQRIWKH)RXUWK$PHQGPHQWDQG6HFWLRQ )GDW FLWDWLRQVRPLWWHG RIWKH.HQWXFN\&RQVWLWXWLRQ ,9',6&866,21 7KH)RXUWK$PHQGPHQWWRWKH8QLWHG6WDWHV&RQVWLWXWLRQ SURYLGHV $/LNHOLKRRGRI6XFFHVVRQWKH0HULWV 7KH ULJKW RI WKH SHRSOH WR EH VHFXUH LQ WKHLU SHUVRQ ,QGHQ\LQJ3ODLQWLII$SSHOODQWjV0RWLRQIRUD7HPSRUDU\ KRXVHV SDSHUV DQG HIIHFWV DJDLQVW XQUHDVRQDEOH ,QMXQFWLRQWKHGLVWULFWFRXUWFRQFOXGHGWKDW0U2YHUVWUHHWLV VHDUFKHV DQG VHL]XUHV VKDOO QRW EH YLRODWHG DQG QR XQOLNHO\WRVXFFHHGRQWKHPHULWVRIKLVFDVH7KHFRXUWEDVHG :DUUDQWVVKDOOLVVXHEXWXSRQSUREDEOHFDXVHVXSSRUWHG LWV FRQFOXVLRQ RQ WKH IDFW WKDW LW FRXOG GLVFHUQ QR E\2DWKRUDIILUPDWLRQDQGSDUWLFXODUO\GHVFULELQJWKH FRQVWLWXWLRQDO YLRODWLRQ IURP 'HIHQGDQW$SSHOOHHjV 5HDO SODFH WR EH VHDUFKHG DQG WKH SHUVRQV RU WKLQJV WR EH 3URSHUW\3ROLF\DQG'LVFORVXUH)RUP0U2YHUVWUHHWQRZ VHL]HG DUJXHVWKDWWKHGLVWULFWFRXUWHUUHGDVDPDWWHURIODZLQLWV ILQGLQJWKDWWKH3ROLF\DQGWKH'LVFORVXUH)RUPDUHQRWOLNHO\ 86 & $%DPHQG,98QGHUWKH)RXUWK$PHQGPHQWD WR EH IRXQG WR YLRODWH WKH 8QLWHG 6WDWHV &RQVWLWXWLRQ mVHDUFKlRFFXUVmZKHQDQH[SHFWDWLRQRISULYDF\WKDWVRFLHW\ $OWKRXJK0U2YHUVWUHHWjV&RPSODLQWDVVHUWHGWKDWWKH3ROLF\ LV SUHSDUHG WR FRQVLGHU UHDVRQDEOH LV LQIULQJHGl 8QLWHG YLRODWHVDVPDQ\DVILYHSURYLVLRQVRIWKH&RQVWLWXWLRQRQ 6WDWHVYsDFREVHQ86 m6HDUFKHVDQG DSSHDOKHDUJXHVRQO\WKDWWKH3ROLF\FRQVWLWXWHVDQLQYDVLRQ VHL]XUHV E\ JRYHUQPHQW HPSOR\HUV RU VXSHUYLVRUV RI WKH RIKLVSULYDF\DQGDQXQUHDVRQDEOHVHDUFKXQGHUWKH)RXUWK SULYDWH SURSHUW\ RI WKHLU HPSOR\HHV DUH VXEMHFW WR WKH $PHQGPHQWWRWKH&RQVWLWXWLRQ UHVWUDLQWVRIWKH)RXUWK$PHQGPHQWl2j&RQQRUY2UWHJD 86 5LJKWWR3ULYDF\ 7KH6XSUHPH&RXUWKDVUHFRJQL]HGWKDWVRPHRILWVFDVHV PD\LQGLFDWHWKHH[LVWHQFHRIDQLQGLYLGXDOSULYDF\LQWHUHVWLQ DYRLGLQJGLVFORVXUHRISHUVRQDOPDWWHUV:KDOHQY5RH 6HFWLRQ RI WKH .HQWXFN\ &RQVWLWXWLRQ VWDWHV
86 7KH:KDOHQ&RXUWREVHUYHGWKDWmWKHFDVHV 7KH SHRSOH VKDOO EH VHFXUH LQ WKHLU SHUVRQV KRXVHV SDSHUV DQG VRPHWLPHV FKDUDFWHUL]HG DV SURWHFWLQJ µSULYDF\j KDYH SRVVHVVLRQV IURP XQUHDVRQDEOH VHDUFK DQG VHL]XUH DQG QR LQYROYHGWKHLQGLYLGXDOLQWHUHVWLQDYRLGLQJGLVFORVXUHRI ZDUUDQW VKDOO LVVXH WR VHDUFK DQ\ SODFH RU VHL]H DQ\ SHUVRQ RU SHUVRQDOPDWWHUVl,GDW VHH1L[RQY$GPj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jW 8UEDQ&RXQW\*RYjW
WKURXJKKLVZRUNHPSOR\HHVLQWKH(QJLQHHULQJ'LYLVLRQDUH 7KLV&RXUWKDVEHHQORDWKWRYLHZHLWKHU:KDOHQRU1L[RQ VRPHWLPHV SULY\ WR LQIRUPDWLRQ UHJDUGLQJ WKH /)8&*jV DVKDYLQJFUHDWHGDFRQVWLWXWLRQDOSULYDF\ULJKWWKDWSURWHFWV LQWHUHVWLQDFTXLULQJFHUWDLQUHDOHVWDWH7KXVDFRQIOLFWRI DJDLQVW WKH GLVFORVXUH RI SHUVRQDO LQIRUPDWLRQ 7R WKH LQWHUHVWFRXOGDULVHVLPSO\E\YLUWXHRIKLVHPSOR\PHQWZLWKLQ FRQWUDU\ WKLV &RXUW KDV UHDG WKRVH FDVHV TXLWH QDUURZO\ WKDW GLYLVLRQ 7KH &RXUW WKHUHIRUH ILQGV WKDW WKH GLVWULFW ,QGHHGLQs3Y'H6DQWL)G WK&LU ZH FRXUW SURSHUO\ FRQFOXGHG WKDW DQ\ SULYDF\ LQWHUHVW WKDW VWDWHG JRYHUQPHQWHPSOR\HHVVXFKDV0U2YHUVWUHHWPD\KDYHLQ WKHLUILQDQFLDODIIDLUVLVOLNHO\WREHRXWZHLJKHGE\WKHSXEOLF $EVHQW D FOHDU LQGLFDWLRQ IURP WKH 6XSUHPH &RXUW ZH LQWHUHVWVWKDWDUHDWVWDNH ZLOO QRW FRQVWUXH LVRODWHG VWDWHPHQWV LQ :KDOHQ DQG 1L[RQ PRUH EURDGO\ WKDQ WKHLU FRQWH[W DOORZV WR 7KH &RXUW QRWHV WKDW 3ODLQWLII$SSHOODQWjV UHOLDQFH RQ UHFRJQL]HDJHQHUDOFRQVWLWXWLRQDOULJKWWRKDYHGLVFORVXUH 0RRUHY&LW\RI(DVW&OHYHODQGLVPLVSODFHG,Q0RRUHD RI SULYDWH LQIRUPDWLRQ PHDVXUHG DJDLQVW WKH QHHG IRU SOXUDOLW\RIWKH6XSUHPH&RXUWVWUXFNGRZQDFLW\RUGLQDQFH GLVFORVXUH WKDW OLPLWHG WKH RFFXSDQF\ RI GZHOOLQJ XQLWV WR VLQJOH IDPLOLHV DQG GHILQHG mIDPLO\l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mZKHQ WKH ZKHQRQHLVGHDOLQJZLWKVXFKZHOOHVWDEOLVKHGULJKWVDV JRYHUQPHQW LQWUXGHV RQ FKRLFHV FRQFHUQLQJ IDPLO\ OLYLQJ WKRVH LQ WKH ILUVW RU IRXUWK DPHQGPHQWV ,W LV TXLWH D DUUDQJHPHQWV WKLV &RXUW PXVW H[DPLQH FDUHIXOO\ WKH WHOOLQJIDLOXUHZKHQWKHFRQVWLWXWLRQDOULJKWDWLVVXHLVQRW LPSRUWDQFHRIWKHJRYHUQPHQWDOLQWHUHVWVDGYDQFHGDQGWKH ZHOOHVWDEOLVKHG H[WHQWWRZKLFKWKH\DUHVHUYHGE\WKHFKDOOHQJHGUHJXODWLRQl ,GDW 7KXV0U2YHUVWUHHWLVLQFRUUHFWLQKLVDVVHUWLRQ )RU DOO WKH IRUHJRLQJ UHDVRQV ZH FRQFOXGH WKDW WKH WKDWXQGHU0RRUHWKHJRYHUQPHQWLVFRPSOHWHO\SURKLELWHG &RQVWLWXWLRQ GRHV QRW HQFRPSDVV D JHQHUDO ULJKW WR IURPLQTXLULQJLQWRRQHjVIDPLO\OLYLQJDUUDQJHPHQWV7RWKH QRQGLVFORVXUHRISULYDWHLQIRUPDWLRQ FRQWUDU\ ZKLOH WKHUH PD\ EH D SULYDF\ ULJKW WKDW SURWHFWV RQHjV ULJKW WR GHWHUPLQH RQHjV IDPLO\ OLYLQJ DUUDQJHPHQWV ,GDW 7KH'H6DQWLFRXUWXOWLPDWHO\KHOGWKDWWKH WKDW ULJKW GRHV QRW SURWHFW VXFK DUUDQJHPHQWV IURP EHLQJ FRQVWLWXWLRQDOULJKWWRSULYDF\LVUHVWULFWHGWRSURWHFWLQJmWKRVH GLVFORVHG SHUVRQDOULJKWVWKDWFDQEHGHHPHGµIXQGDPHQWDOjRUµLPSOLFLW LQ WKH FRQFHSW RI RUGHUHG OLEHUW\jl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jW 8UEDQ&RXQW\*RYjW
DOORZHG ODZ HQIRUFHPHQW RIILFLDOV WR UHOHDVH UHJLVWU\ LQWHUHVWV LQFOXGH WKH SULYDF\ LQWHUHVW RQH KDV LQ PDWWHUV LQIRUPDWLRQWRWKHSXEOLFGLGQRWYLRODWHWKHVH[RIIHQGHUjV UHODWLQJ WR PDUULDJH SURFUHDWLRQ FRQWUDFHSWLRQ IDPLO\ FRQVWLWXWLRQDOULJKWWRSULYDF\EHFDXVHQRIXQGDPHQWDOLQWHUHVW UHODWLRQVKLSVFKLOGUHDULQJDQGHGXFDWLRQ6HH3DXOY'DYLV ZDV LPSOLFDWHG .DOOVWURP Y &LW\ RI &ROXPEXV )G 86 7KHSULYDF\LQWHUHVWRQHPD\KDYH WK &LU FRQFOXGLQJ WKDW WKH SULYDF\ LQRQHjVSHUVRQDOILQDQFHVDQGUHDOHVWDWHKROGLQJVLVIDUDILHOG LQWHUHVW RI XQGHUFRYHU SROLFH RIILFHUV LQ WKH SHUVRQDO IURPVXFKLQWLPDWHFRQFHUQV6HH+DKQY6WDU%DQN LQIRUPDWLRQFRQWDLQHGLQWKHLUSHUVRQQHOUHFRUGVoWKHLQWHUHVW )G WK &LU ILQGLQJ WKDW SURGXFWLRQ RI LQ SUHVHUYLQJ WKHLU OLYHV DQG WKH OLYHV RI WKHLU IDPLOLHV o SODLQWLIIVj ORDQ ILOH WR WKLUG SDUWLHV LV mIDU DILHOGl IURP WKH LPSOLFDWHG D IXQGDPHQWDO OLEHUW\ LQWHUHVW :KHQ DQ IXQGDPHQWDO LQWHUHVWV SURWHFWHG E\ WKH ULJKW WR SULYDF\ LQGLYLGXDOjV LQWHUHVW LQ WKH QRQGLVFORVXUH RI SHUVRQDO 7KHUHIRUH0U2YHUVWUHHWjVFODLPWKDWWKH/)8&*LQIULQJHG LQIRUPDWLRQLVRIDFRQVWLWXWLRQDOGLPHQVLRQWKH&RXUWPXVW KLVULJKWWRSULYDF\LVOLNHO\WRIDLORQWKHPHULWV EDODQFHWKHLQGLYLGXDOjVLQWHUHVWLQQRQGLVFORVXUHDJDLQVWWKH SXEOLFjVLQWHUHVWLQWKHLQYDVLRQRISULYDF\.DOOVWURP (YHQLIWKHIDFWVGLGLPSOLFDWHDIXQGDPHQWDOLQWHUHVWWKH )GDW FLWLQJ'H6DQWL)GDW &RXUWZRXOGQRQHWKHOHVVFRQFOXGHWKDW3ODLQWLII$SSHOODQWj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j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jVFRQWHQWLRQWKDWKHKDV FRQVWLWXWLRQDO ULJKW WR SULYDF\ LV SURWHFWHG RQO\ ZKHQ WKH QRVLJQLILFDQWLQIOXHQFHRQ]RQLQJRURWKHUUHDOHVWDWHLVVXHV LQWHUHVWDWVWDNHLQYROYHVDIXQGDPHQWDOLQWHUHVWRUDQLQWHUHVW WKDWLVLPSOLFLWLQWKHFRQFHSWRIRUGHUHGOLEHUW\WKH&RXUWjV DQDO\VLV PXVW EHJLQ ZLWK D GHWHUPLQDWLRQ RI ZKHWKHU 0U 7KH IDFW WKDW WKH /)8&* 3ROLF\ UHTXLUHV LQIRUPDWLRQ DERXW 0U 2YHUVWUHHWjVSULYDF\LQWHUHVWLQKLVILQDQFLDODIIDLUVLVVXFKDQ 2YHUVWUHHWjV LPPHGLDWH IDPLO\ GRHV QRW DOWHU WKLV FRQFOXVLRQ DV PHPEHUV
LQWHUHVW7KH6XSUHPH&RXUWKDVIRXQGWKDWmIXQGDPHQWDOl RI 0U 2YHUVWUHHWjV LPPHGLDWH IDPLO\ KDYH QR PRUH D IXQGDPHQWDO SULYDF\ LQWHUHVW LQ WKHLU ILQDQFLDO DIIDLUV WKDQ KH GRHV
Reference
- Status
- Published