Shepherd v. Wellman
Shepherd v. Wellman
Opinion
5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 6KHSKHUGHWDOY:HOOPDQHWDO 1R 3XUVXDQW WR 6L[WK &LUFXLW 5XOH
(/(&7521,& &,7$7,21 )(' $SS 3 WK &LU
7KHUHSUHVHQWDWLYHRIWKHGHFHGHQWjVHVWDWHZDV )LOH 1DPH DS
DSSRLQWHG LQ $XJXVW RI %HFDXVH SODLQWLIIVj FODLPZDVRULJLQDOO\GLVPLVVHGZLWKRXWSUHMXGLFHZHWUHDWLW DV WKRXJK WKH VWDWXWH RI OLPLWDWLRQV FRQWLQXHG WR UXQ 81,7('67$7(6&28572)$33($/6 &RQVHTXHQWO\WKHVWDWXWHRIOLPLWDWLRQVKDGUXQDWWKHWLPHRI )257+(6,;7+&,5&8,7 GLVPLVVDO6LQFH.HQWXFN\/DZGRHVQRWFRQWDLQDVWDWXWRU\ BBBBBBBBBBBBBBBBB SURYLVLRQ WKDW ZRXOG SHUPLW WKH SODLQWLIIV WR SURFHHG ZLWK WKHLUFODLPHYHQWKRXJKLWLVRXWRIWLPHZHFRQFOXGHWKDWWKH GLVWULFWFRXUWFRUUHFWO\GLVPLVVHGWKLVFODLPZLWKSUHMXGLFH %,// :$<1( 6+(3+(5' ; sDFRE 6KHSKHUGj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jVGLVPLVVDOIRUIDLOXUHWRVWDWHD IRUWKH(DVWHUQ'LVWULFWRI.HQWXFN\DW/RQGRQ FODLP 1R nsHQQLIHU%&RIIPDQ'LVWULFWsXGJH :HDOVRFRQFOXGHWKDWWKHGLVWULFWFRXUWGLGQRWDEXVHLWV $UJXHG 1RYHPEHU GLVFUHWLRQZKHQLWGLVPLVVHGWKLVFODLPZLWKSUHMXGLFH7KH SODLQWLIIVKDYHIDLOHGWRSURYLGHHYLGHQFHVXJJHVWLQJWKDWWKLV 'HFLGHGDQG)LOHG 'HFHPEHU GHFLVLRQDPRXQWHGWRDFOHDUHUURU %HIRUH .(,7+.(11('<DQG0225(&LUFXLW &21&/86,21 sXGJHV )RUWKHIRUHJRLQJUHDVRQVZH$)),50WKHGLVWULFWFRXUW BBBBBBBBBBBBBBBBB RUGHUV &2816(/ $5*8(' sHIIUH\ 0 %OXP /RXLVYLOOH .HQWXFN\ IRU $SSHOODQWV'DQD&)XJD]]L.(178&.<67$7(32/,&( /(*$/2)),&()UDQNIRUW.HQWXFN\0DU\(1DXPDQQ s$&.621 .(//< /H[LQJWRQ .HQWXFN\ 6WHYHQ /
6KHSKHUGHWDOY:HOOPDQHWDO 1R 1R 6KHSKHUGHWDOY:HOOPDQHWDO
6Q\GHU :<$77 7$55$17 &20%6 /RXLVYLOOH WKDQWKHOLWLJDQWl3ULGJHQY$QGHUVRQ)G .HQWXFN\ IRU $SSHOOHHV 21 %5,() sHIIUH\ 0 %OXP G &LU 8QGHU 3ULGJHQ DQG ,DQQDFRQH *DU\ /RXLVYLOOH .HQWXFN\ IRU $SSHOODQWV 'DQD & )XJD]]L 6KHSKHUGFDQQRWSURFHHGSURVHZLWKUHVSHFWWRWKH .(178&.<67$7(32/,&(/(*$/2)),&()UDQNIRUW DFWLRQEHFDXVHKHLVQRWWKHVROHEHQHILFLDU\RIWKHGHFHGHQWjV .HQWXFN\0DU\(1DXPDQQ6WDQWRQ/&DYHs$&.621 HVWDWH6HHsDFRY%ORHFKHOH )G WK&LU .(//</H[LQJWRQ.HQWXFN\6WHYHQ/6Q\GHU5REHUW, QRWLQJWKDW DFWLRQVDUHSHUVRQDOWRWKHLQMXUHG &XVLFN sU :<$77 7$55$17 &20%6 /RXLVYLOOH SDUW\DQGFDQRQO\EHEURXJKWE\WKHH[HFXWRURIDQHVWDWH .HQWXFN\IRU$SSHOOHHV 6LPLODUO\ SDUHQWV FDQQRW DSSHDU SUR VH RQ EHKDOI RI WKHLU PLQRUFKLOGUHQEHFDXVHDPLQRUjVSHUVRQDOFDXVHRIDFWLRQLV BBBBBBBBBBBBBBBBB KHURZQDQGGRHVQRWEHORQJWRKHUSDUHQWRUUHSUHVHQWDWLYH 6HH&KHXQJY<RXWK2UFKHVWUD)RXQGRI%XIIDOR,QF 23,1,21 )G G &LU $V D UHVXOW sRQHV FRXOG QRW BBBBBBBBBBBBBBBBB DSSHDU SUR VH LQ WKH FODLPV EURXJKW RQ EHKDOI RI WKH GHFHGHQWjVVRQsDFRE6LQFHFDVHODZGRHVQRWSHUPLW*DU\ '$021s.(,7+&LUFXLWsXGJH3ODLQWLIIV$SSHOODQWV 6KHSKHUGRU0DU\sDQHsRQHVWRSURFHHGSURVHLQWKHFODLPV 0DU\sDQHsRQHVsDFRE6KHSKHUGDQG%LOO:6KHSKHUGDQG ILOHGRQEHKDOIRIWKHHVWDWHDQGsDFRE6KHSKHUGZHFRQFOXGH $WWRUQH\$SSHOODQWsHIIUH\%OXPDSSHDOIURPWKHIROORZLQJ WKDW WKH GLVWULFW FRXUW SURSHUO\ GLVPLVVHG WKHVH FODLPV IRU RUGHUV WKHGHQLDORISODLQWLIIVjPRWLRQIRUSDUWLDOVXPPDU\ IDLOXUHWRSURVHFXWH MXGJPHQWVHHNLQJDGHFODUDWRU\MXGJPHQWWKDWWKH.HQWXFN\ 6WDWH 3ROLFH .63 GHDGO\ IRUFH SROLF\ LV XQFRQVWLWXWLRQDO +DYLQJFRQFOXGHGWKDWWKHGLVWULFWFRXUWSURSHUO\GLVPLVVHG WKHRUGHUGLVPLVVLQJWKH DFWLRQDJDLQVW:HOOPDQ WKH DFWLRQDQGWKHFODLPEURXJKWXQGHU.\5HY6WDW IRUPHU .63 SROLFH &RPPLVVLRQHU WKH LPSRVLWLRQ RI ZHQRZH[DPLQHZKHWKHUWKHGLVWULFWFRXUWDEXVHG VDQFWLRQVDJDLQVWSODLQWLIIVjDWWRUQH\sHIIUH\%OXP WKH LWV GLVFUHWLRQ ZKHQ LW DPHQGHG LWV RULJLQDO RUGHU DQG GLVPLVVDO ZLWK SUHMXGLFH RI SODLQWLIIVj FODLPV DJDLQVW GLVPLVVHGWKHSODLQWLIIVjFODLPVZLWKSUHMXGLFH7KLVFRXUW GHIHQGDQWV 5HIIHWW 3URYHQFH 5HLFKHQEDFK DQG 6LOYHUV WUHDWVDFWLRQVWKDWZHUHGLVPLVVHGZLWKRXWSUHMXGLFHDVWKRXJK m2IILFHUVl WKHVXLWKDGQHYHUEHHQEURXJKW6HH%RPHUY5LELFRII )G WK&LU &RQVHTXHQWO\WKHVWDWXWHRI :H GHFOLQH WR FRQVLGHU WKH FRQVWLWXWLRQDOLW\ RI WKH .63 OLPLWDWLRQVZDVQRWWROOHGGXULQJWKHSHULRGWKDWWKHSODLQWLIIV GHDGO\IRUFHSROLF\EHFDXVHWKHSODLQWLIIVODFNHGVWDQGLQJWR ZHUHOLWLJDWLQJWKHLUFODLPV VHHN GHFODUDWRU\ MXGJPHQW DQG EHFDXVH WKLV LVVXH ZDV QRW UDLVHGEHIRUH WKH GLVWULFWFRXUW:HDOVRFRQFOXGHWKDWWKH $OWKRXJK FRQWDLQV QR VWDWXWH RI OLPLWDWLRQV WULDO GLVWULFW FRXUW SURSHUO\ GLVPLVVHG WKH DFWLRQ DJDLQVW FRXUWVDSSO\WKHVWDWHVWDWXWHRIOLPLWDWLRQVIRUWKHFDXVHRI :HOOPDQEHFDXVHWKHSOHDGLQJVGLGQRWSODFH:HOOPDQRQ DFWLRQ PRVW VLPLODU WR WKH XQGHUO\LQJ FODLP LQ WKH QRWLFHWKDWKHZDVEHLQJVXHGDVDQLQGLYLGXDO6LPLODUO\ZH DFWLRQ:LOVRQY*DUFLD86 ,Q DUHQRWSHUVXDGHGWKDWWKHGLVWULFWFRXUWDEXVHGLWVGLVFUHWLRQ WKLV FDVH WKH DFWLRQ LV SURSHUO\ FKDUDFWHUL]HG DV D ZKHQLWLPSRVHGVDQFWLRQVDJDLQVW%OXPIRUXVLQJWKLVFDVHWR ZURQJIXOGHDWKDFWLRQPDNLQJLWVXEMHFWWRDRQH\HDUVWDWXWH FRQGXFWGLVFRYHU\LQDQXQUHODWHGFDVH0RUHRYHUZHILQG RIOLPLWDWLRQVDFFUXLQJIURPWKHGDWHWKDWWKHUHSUHVHQWDWLYH WKDW WKH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ ZKHQ LW RI WKH HVWDWH ZDV DSSRLQWHG 6HH &RQQHU Y *HRUJH : GLVPLVVHG WKH FODLPV DJDLQVW WKH 2IILFHUV EHFDXVH WKH :KLWHVLGHV&R6:G .\ 6HH SODLQWLIIVIDLOHGWRREWDLQFRXQVHO$FFRUGLQJO\ZH$)),50 DOVR .\ 5HY 6WDW $QQ .\ 5HY 6WDW $QQ WKHGLVWULFWFRXUWRUGHUV 6KHSKHUGHWDOY:HOOPDQHWDO 1R 1R 6KHSKHUGHWDOY:HOOPDQHWDO
$FFRUGLQJO\ZHDIILUPWKHLPSRVLWLRQRI VDQFWLRQV )$&78$/$1'352&('85$/%$&.*5281' DJDLQVW%OXP 2Q $XJXVW *DU\ 6KHSKHUG ZDV VKRW DQG NLOOHG 7KH'LVPLVVDORIWKH&ODLPV$JDLQVWWKH2IILFHUV GXULQJDVWDQGRIIZLWKVHYHUDOPHPEHUVRIWKH.636SHFLDO 5HVSRQVH 7HDP 2Q $XJXVW 0DU\ sDQH sRQHV 7KH GLVWULFW FRXUW GLG QRW VWDWH WKH UXOH XQGHUO\LQJ LWV GHFHGHQWjVJLUOIULHQGILOHGVHYHUDOFODLPVRQEHKDOIRIsDFRE GLVPLVVDORIWKH DFWLRQDJDLQVWWKH2IILFHUVDQGFODLPV 6KHSKHUG WKH FRXSOHjV VRQ LQFOXGLQJ WKH ORVV RI SDUHQWDO EURXJKWXQGHU.HQWXFN\/DZ%HFDXVHWKHVHGLVPLVVDOVZHUH FRQVRUWLXP DQG D FODLP ILOHG XQGHU .\ 5HY 6WDW $QQ EDVHG XSRQ WKH SODLQWLIIVj IDLOXUH WR REWDLQ FRXQVHO ZH SHUPLWWLQJ WKH FKLOG RI D SHUVRQ NLOOHG E\ mWKH HYDOXDWH WKH GLVPLVVDO XQGHU )HG 5 &LY 3 E :H FDUHOHVVZDQWRQRUPDOLFLRXVXVHRIDGHDGO\ZHDSRQQRWLQ UHYLHZGLVPLVVDOVXQGHU)HG5&LY3 E IRUFOHDUHUURU VHOIGHIHQVHWRVXHWKHSDUW\WKDWFRPPLWWHGWKHNLOOLQJlDQG 6HH+DVNHOOY:DVKLQJWRQ7RZQVKLS)G DQ\SDUW\WKDWDLGHGLQWKHNLOOLQJ sRQHVDOVRILOHGDSHUVRQDO WK&LU 7KHGLVWULFWFRXUWjVGHFLVLRQWRGLVPLVVZLWK LQMXU\FODLPZKLFKVKHZLWKGUHZYROXQWDULO\%LOO:D\QH RU ZLWKRXW SUHMXGLFH ZLOO QRW EH UHYHUVHG mDEVHQW D FOHDU 6KHSKHUGWKHGHFHGHQWjVEURWKHUDQGUHSUHVHQWDWLYHRIWKH VKRZLQJ RI DQ DEXVH RI GLVFUHWLRQl 6WHUOLQJ Y 9HOVLFRO GHFHGHQWjV HVWDWH DOVR ILOHG D DFWLRQ DJDLQVW WKH &KHP&RUS)G WK&LU GHIHQGDQWV7KHGHIHQGDQWV DUHPHPEHUVRIWKH.HQWXFN\ 6WDWH3ROLFH'HSDUWPHQW 7KH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ ZKHQ LW GLVPLVVHGWKH DFWLRQDJDLQVWWKH2IILFHUVIRUIDLOXUHWR 2Q$XJXVW %LOO\:HOOPDQWKHIRUPHU.63SROLFH SURVHFXWH7KHSODLQWLIIVZHUHJLYHQPRUHWKDQWZR\HDUVWR FRPPLVVLRQHUILOHGDPRWLRQWRGLVPLVVWKHSODLQWLIIVj REWDLQFRXQVHOsXGJH&RIIPDQHYHQSURYLGHGWKHSODLQWLIIV DFWLRQ RQ WKH JURXQGV RI DEVROXWH LPPXQLW\ 7KH GLVWULFW ZLWKWKHQDPHVRIVHYHUDODWWRUQH\VWKDWPLJKWEHZLOOLQJWR FRXUWJUDQWHGWKLVPRWLRQLQ:HOOPDQjVIDYRURQWKHJURXQGV UHSUHVHQW WKHP $V D UHVXOW SODLQWLIIVj DUJXPHQW WKDW WKH WKDWWKHSOHDGLQJVGLGQRWSURYLGH:HOOPDQZLWKQRWLFHWKDW GLVWULFWFRXUWLQWHUIHUHGZLWKWKHLUDELOLW\WRVHFXUHFRXQVHOLV KHZDVEHLQJVXHGLQKLVLQGLYLGXDOFDSDFLW\ XQIRXQGHG0RUHRYHUFRQWUDU\WRWKHSODLQWLIIVjDUJXPHQW WKH SODLQWLIIV ZHUH QRW HQWLWOHG WR KDYH FRXQVHO DSSRLQWHG 2Q sXQH WKH SODLQWLIIV ILOHG D SDUWLDO VXPPDU\ EHFDXVHWKLVLVDFLYLOODZVXLW6HH,DQQDFRQQHY/DZ MXGJPHQWPRWLRQVHHNLQJDGHFODUDWRU\MXGJPHQWWKDWWKH.63 )G G&LU FLYLOOLWLJDQWVZKRDUHXQDEOHWR GHDGO\IRUFHSROLF\LVXQFRQVWLWXWLRQDO7KLVDUJXPHQWZDV DIIRUGFRXQVHOFDQQRWKDYHFRXQVHODSSRLQWHGXQOHVVWKHUHLV ILUVWUDLVHGLQWKHVHFRQGDPHQGHGFRPSODLQW7KHGLVWULFW DULVNRIORVVRIOLEHUW\ FRXUWGLGQRWSHUPLWWKHSODLQWLIIVWRILOHWKHVHFRQGDPHQGHG FRPSODLQW EHFDXVH WKLV DGGLWLRQDO DPHQGPHQW ZRXOG KDYH $OWKRXJK86&SURYLGHVWKDWm>L@QDOOFRXUWVRI UHVXOWHG LQ XQGXH SUHMXGLFH DQG GHOD\ 7KH GLVWULFW FRXUW WKH8QLWHG6WDWHVWKHSDUWLHVPD\SOHDGDQGFRQGXFWWKHLURZQ GHQLHG SODLQWLIIVj SDUWLDO PRWLRQ IRU VXPPDU\ MXGJPHQW FDVHVSHUVRQDOO\RUE\FRXQVHOlWKDWVWDWXWHGRHVQRWSHUPLW EHFDXVHWKHFRQVWLWXWLRQDOLW\RIWKHGHDGO\IRUFHSROLF\ZDV SODLQWLIIVWRDSSHDUSURVHZKHUHLQWHUHVWVRWKHUWKDQWKHLURZQ QRWDUJXHGLQWKHSOHDGLQJVDFFHSWHGE\WKHFRXUW3ODLQWLIIV DUHDWVWDNH6HH,DQQDFRQHY/DZ)G G DUHDSSHDOLQJWKHGHQLDORIWKHLUPRWLRQIRUSDUWLDOVXPPDU\ &LU m>%@HFDXVHSURVHPHDQVWRDSSHDUIRURQHjVVHOI MXGJPHQW DSHUVRQPD\QRWDSSHDURQDQRWKHUSHUVRQjVEHKDOILQWKH RWKHUjVFDXVHl 0RUHRYHUWKH6HFRQG&LUFXLWKDVKHOGWKDW 2QsDQXDU\ %OXPVXESRHQDHGVHYHUDOZLWQHVVHV mDQDGPLQLVWUDWUL[RUH[HFXWUL[RIDQHVWDWHPD\QRWSURFHHG DQGUHTXHVWHGMXURUTXHVWLRQQDLUHVWRLQYHVWLJDWHDOOHJDWLRQV SURVHZKHQWKHHVWDWHKDVEHQHILFLDULHVDQGFUHGLWRUVRWKHU RIMXU\WDPSHULQJLQ)RUGY3URYHQFH )RUG, DQXQUHODWHG 6KHSKHUGHWDOY:HOOPDQHWDO 1R 1R 6KHSKHUGHWDOY:HOOPDQHWDO
FDVHLQZKLFK%OXPUHSUHVHQWHGDQRWKHUSODLQWLIIDJDLQVWWKH 6LPSOHLQDGYHUWHQFHDQGQHJOLJHQFHDUHQRWJURXQGV .HQWXFN\ 6WDWH 3ROLFH 'HSDUWPHQW 7KH 2IILFHUV ILOHG D IRU LPSRVLQJ VDQFWLRQV 6HH 5LGGHU Y &LW\ RI PRWLRQ IRU D SURWHFWLYH RUGHU DQG VDQFWLRQV WR SUHYHQW WKH 6SULQJILHOG )G WK&LU SODLQWLIIVIURPXVLQJWKHLQVWDQWFDVHWRFRQGXFWGLVFRYHU\IRU DQXQUHODWHGFDVH7KHGLVWULFWFRXUWFRQVWUXHGWKLVPRWLRQDV :HDJUHHZLWKWKHGLVWULFWFRXUWjVFRQFOXVLRQWKDW%OXPjV DPRWLRQIRUH[FHVVFRVWVDQGDWWRUQH\VIHHVXQGHU86& FRQGXFW GXULQJ GLVFRYHU\ XQQHFHVVDULO\ PXOWLSOLHG WKH 2QsXQH DIWHUJLYLQJ%OXPDQRSSRUWXQLW\ SURFHHGLQJVDQGIHOOVKRUWRIKLVREOLJDWLRQVDVDPHPEHURI WRH[SODLQZK\KHVKRXOGQRWEHVDQFWLRQHGWKHGLVWULFWFRXUW WKHEDU7KH6XSUHPH&RXUWKDVKHOGWKDWmZKHQWKHSXUSRVH JUDQWHGWKH2IILFHUVjPRWLRQIRUVDQFWLRQVEHFDXVH%OXPKDG RI D GLVFRYHU\ UHTXHVW LV WR JDWKHU LQIRUPDWLRQ IRU XVH LQ LPSURSHUO\ XVHG WKH LQVWDQW OLWLJDWLRQ LQ RUGHU WR FRQGXFW SURFHHGLQJVRWKHUWKDQWKHSHQGLQJVXLWGLVFRYHU\LVSURSHUO\ GLVFRYHU\LQDQXQUHODWHGFDVH2QsXO\ %OXPZDV GHQLHGl2SSHQKHLPHU)XQG,QFY6DQGHUV86 JUDQWHGOHDYHWRZLWKGUDZDVSODLQWLIIVjFRXQVHO3ODLQWLIIVDUH Q %OXPDGPLWVWKDWKHTXHVWLRQHGZKHWKHU DSSHDOLQJWKHVDQFWLRQVRUGHU WKHGHSRVLWLRQVVKRXOGEHQRWLFHGLQWKHLQVWDQWFDVH(YHQ DIWHUWKHGLVWULFWFRXUWDGYLVHG%OXPWKDWKH VKRXOGSXUVXH :KHQDVWDWXVFRQIHUHQFHZDVKHOGRQ0DUFKWKH RWKHU PHDQV RI LQYHVWLJDWLQJ WKH DOOHJHG MXU\ WDPSHULQJ LQ SODLQWLIIVKDGQRWREWDLQHGFRXQVHO7KHGLVWULFWFRXUWRUGHUHG )RUG,%OXPGLGQRWZLWKGUDZKLVGLVFRYHU\UHTXHVWV6LQFH WKHSODLQWLIIVWRREWDLQFRXQVHOQRODWHUWKDQGD\VIROORZLQJ %OXPjVUHTXHVWVKDGQREHDULQJRQWKHLQVWDQWFDVHZHILQG WKH HQWU\ RI WKH RUGHU VHWWLQJ PRQHWDU\ VDQFWLRQV DJDLQVW WKDW WKH GLVWULFW FRXUW GLG QRW DEXVH LWV GLVFUHWLRQ ZKHQ LW %OXP 7KDW RUGHU ZDV HQWHUHG RQ $XJXVW 7KH FRQFOXGHGWKDW%OXPjVFRQGXFWZDUUDQWHG VDQFWLRQV SODLQWLIIVGLGQRWVHFXUHFRXQVHOZLWKLQGD\VRIWKDWRUGHU QRUGLGWKH\WLPHO\UHVSRQGWRWKH2IILFHUVjPRWLRQWRGLVPLVV %OXPjV DOOHJDWLRQ WKDW WKH VXESRHQDV ZHUH ZLWKGUDZQ IRUIDLOXUHWRSURVHFXWH2QsDQXDU\WKHGLVWULFWFRXUW EHIRUH DQ\ FRVWV ZHUH LQFXUUHG ODFNV PHULW 7KH UHFRUG JUDQWHG WKH 2IILFHUVj PRWLRQ WR GLVPLVV IRU IDLOXUH WR LQGLFDWHVWKDW%OXPGLGQRWIRUPDOO\ZLWKGUDZKLVVXESRHQD SURVHFXWH3ODLQWLIIVDUHDSSHDOLQJWKLVRUGHU UHTXHVWV ZLWK WKH FRXUW 0RUHRYHU %OXP FRQGLWLRQHG WKLV ZLWKGUDZDOXSRQWKHGHIHQGDQWVjDJUHHPHQWWRZLWKGUDZWKHLU 2QsDQXDU\WKHRIILFHUVILOHGDPRWLRQSXUVXDQW PRWLRQIRUFRVWVSHQGLQJWKHRXWFRPHRI)RUG,DQG%OXP WR)HG5&LY3 E WRDPHQGWKHMXGJPHQWWRGLVPLVVDO GLG QRW FRPPXQLFDWH KLV LQWHQW WR ZLWKGUDZ WR DOO RI WKH ZLWKSUHMXGLFHEHFDXVHWKHVWDWXWHRIOLPLWDWLRQVKDGUXQRQ GHIHQGDQWV$VDUHVXOWZHUHMHFW%OXPjVDUJXPHQWWKDWWKH WKHSODLQWLIIVjFRPSODLQWV3ODLQWLIIVGLGQRWUHVSRQGWRWKLV GLVWULFWFRXUWHUUHGZKHQLWDOORZHGWKHGHIHQGDQWVWRLQFXU PRWLRQDQGWKHGLVWULFWFRXUWJUDQWHGWKHPRWLRQLQIDYRURI FRVWVLQUHVSRQGLQJWRWKHVXESRHQDUHTXHVWV WKH2IILFHUV3ODLQWLIIVDSSHDOWKHDPHQGHGRUGHU :HDOVRUHMHFW%OXPjVDUJXPHQWWKDWKLVUHTXHVWVIRUWKH $1$/<6,6 MXURUTXDOLILFDWLRQIRUPVIURP)RUG,ZHUHDXWKRUL]HGXQGHU 86&6HFWLRQSHUPLWVWKHSXEOLFWRLQVSHFW 3ODLQWLIIVj0RWLRQIRU3DUWLDO6XPPDU\sXGJPHQW WKHUHFRUGDQGSDSHUVFRPSLOHGE\WKHMXU\FRPPLVVLRQVROHO\ mIRUWKHSXUSRVHRIGHWHUPLQLQJWKHYDOLGLW\RIWKHVHOHFWLRQRI 7KH SODLQWLIIV ILOHG D PRWLRQ UHTXHVWLQJ WKDW WKH GLVWULFW DQ\MXU\l86&+RZHYHUEHFDXVH%OXPZDV FRXUWGHFODUHWKH.63GHDGO\IRUFHSROLF\XQFRQVWLWXWLRQDO LQYHVWLJDWLQJSRVWWULDODOOHJDWLRQVRIMXU\WDPSHULQJDQGQRW 7KHGLVWULFWFRXUWIRXQGWKDWWKHSODLQWLIIVODFNHGVWDQGLQJWR WKH VHOHFWLRQ RI WKH MXU\ %OXPjV UHTXHVWV IRU MXURU VHHNVXFKGHFODUDWRU\UHOLHI3ODLQWLIIVQRZDVNWKLVFRXUWWR TXHVWLRQQDLUHV ZHUH QRW DXWKRUL]HG XQGHU GHFODUHWKHSROLF\XQFRQVWLWXWLRQDO7KH\DOOHJHWKDWWKHLVVXH 6KHSKHUGHWDOY:HOOPDQHWDO 1R 1R 6KHSKHUGHWDOY:HOOPDQHWDO
UHVSRQVLELOLW\lRYHUWKH.636SHFLDO5HVSRQVH7HDPDQGZDV LVSURSHUO\EHIRUHXVEHFDXVHERWKSDUWLHVFRQVHQWHGWROLWLJDWH mFKDUJHG ZLWK OHJDO UHVSRQVLELOLW\ IRU WKH DGHTXDF\ RU WKHFRQVWLWXWLRQDOLW\RIWKHSROLF\HYHQWKRXJKWKHLVVXHZDV LQDGHTXDF\RILWVWUDLQLQJDQGVXSHUYLVLRQl QRWUDLVHGLQWKHSOHDGLQJV7KHGHIHQGDQWVPDLQWDLQWKDWWKH\ GLGQRWFRQVHQWWROLWLJDWHZKHWKHUWKHGHDGO\IRUFHSROLF\ZDV ,QGHHGWKHSODLQWLIIVj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mZKHQ FRPSODLQW VR VWURQJO\ VXJJHVWV DQ RIILFLDO FDSDFLW\ VXLW LVVXHV QRW UDLVHG E\ WKH SOHDGLQJV DUH WULHG E\ H[SUHVV RU )XUWKHUPRUH XQOLNH LQ 0RRUH WKHUH ZHUH QR VXEVHTXHQW LPSOLHG FRQVHQW RI WKH SDUWLHV WKH\ VKDOO EH WUHDWHG LQ DOO SOHDGLQJVLQWKLVFDVHWKDWSXWWKHGHIHQGDQWRQQRWLFHWKDWKH UHVSHFWVDVLIWKH\KDGEHHQUDLVHGLQWKHSOHDGLQJVl)HG5 ZDVEHLQJVXHGDVDQLQGLYLGXDO &LY 3 E 7KH UHFRUG LQ WKLV FDVH GRHV QRW VXSSRUW SODLQWLIIVjDOOHJDWLRQWKDWWKHGHIHQGDQWVLPSOLHGO\FRQVHQWHG )RU WKHVH UHDVRQV ZH FRQFOXGH WKDW WKH GLVWULFW FRXUWjV WR OLWLJDWH WKH FRQVWLWXWLRQDOLW\ RI WKH GHDGO\ IRUFH SROLF\ GLVPLVVDORIWKH DFWLRQDJDLQVW:HOOPDQZDVSURSHU 7KHUHIRUHWKH)HGHUDO5XOHVRI&LYLO3URFHGXUHGRQRWUHTXLUH XV WR FRQVLGHU WKLV LVVXH DQG ZH GHFOLQH WR H[HUFLVH RXU 7KH6DQFWLRQV$ZDUG GLVFUHWLRQWRGRVR :HUHYLHZVDQFWLRQVDZDUGHGXQGHU86& IRU 7KH'LVPLVVDORIWKH $FWLRQ$JDLQVW:HOOPDQ DEXVH RI GLVFUHWLRQ 6HH 5XQIROD $VVRFLDWHV ,QF Y 6SHFWUXP 5HSRUWLQJ ,, ,QF )G WK &LU :HUHYLHZDGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQW 8QGHU VDQFWLRQVPD\EHDZDUGHGDJDLQVWDQDWWRUQH\ GHQRYR6HH+DPPRQVY1RUIRON)G WK ZKRmPXOWLSOLHVWKHSURFHHGLQJVLQDQ\FDVHXQUHDVRQDEO\DQG &LU +RZHYHULQWKHFLYLOULJKWVFRQWH[WZHVFUXWLQL]H YH[DWLRXVO\l86& :HFRQVWUXHmYH[DWLRXVO\ WKHGLVPLVVDORIFRPSODLQWVZLWKVSHFLDOFDUH6HH)RUHVWY PXOWLSO\LQJ SURFHHGLQJVl WR LQFOXGH FRQGXFW ZKHUH mDQ 8QLWHG 6WDWHV 3RVWDO 6HUYLFH )G WK &LU DWWRUQH\ NQRZV RU UHDVRQDEO\ VKRXOG NQRZ WKDW D FODLP :HFRQVWUXHWKHFRPSODLQWOLEHUDOO\LQWKHSODLQWLIIjV SXUVXHGLVIULYRORXVRUWKDWKLVRUKHUOLWLJDWLRQWDFWLFVZLOO IDYRUDQGDFFHSWDVWUXHDOOIDFWXDODOOHJDWLRQVDQGSHUPLVVLEOH QHHGOHVVO\ REVWUXFW WKH OLWLJDWLRQ RI QRQIULYRORXV FODLPVl LQIHUHQFHVWKHUHLQ6HH*D]HWWHY&LW\RI3RQWLDF)G sRQHVY&RQWjO&RUS )G WK&LU WK&LU :H KDYH DOVR KHOG WKDW VDQFWLRQV DUH DSSURSULDWH ZKHUHmDQDWWRUQH\KDVHQJDJHGLQVRPHVRUWRIFRQGXFWWKDW ,Q:LOOY0LFKLJDQ'HSWRI6WDWH3ROLFH 86 IURPDQREMHFWLYHVWDQGSRLQWµIDOOVVKRUWRIWKHREOLJDWLRQV WKH6XSUHPH&RXUWKHOGWKDWWKH(OHYHQWK$PHQGPHQW RZHGE\WKHPHPEHURIWKHEDUWRWKHFRXUWDQGZKLFKDVD EDUV VXLWVDJDLQVWDVWDWHDQGDJDLQVWVWDWHHPSOR\HHV UHVXOW FDXVHV DGGLWLRQDO H[SHQVH WR WKH RSSRVLQJ SDUW\jl VXHGLQWKHLURIILFLDOFDSDFLWLHVXQOHVVWKHVWDWHKDVZDLYHGLWV +ROPHVY&LW\ RI0DVVLOORQ)G WK&LU LPPXQLW\ RU XQOHVV &RQJUHVV KDV RYHUULGGHQ WKH VWDWHjV TXRWLQJ ,Q 5H 5XEHQ )G WK &LU LPPXQLW\XQGHUVHFWLRQRIWKH)RXUWHHQWK$PHQGPHQW$V 6KHSKHUGHWDOY:HOOPDQHWDO 1R 1R 6KHSKHUGHWDOY:HOOPDQHWDO
DUHVXOWZHUHTXLUH SODLQWLIIVWRmVHWIRUWKFOHDUO\LQ UDWKHU WKDQ LQ KLV RIILFLDO FDSDFLW\ 7KH SODLQWLIIV ODWHU WKHLUSOHDGLQJWKDWWKH\DUHVXLQJWKHVWDWHGHIHQGDQWVLQWKHLU DPHQGHG WKHLU FRPSODLQW EXW WKH DPHQGHG FRPSODLQW DOVR LQGLYLGXDOFDSDFLW\IRUGDPDJHVQRWVLPSO\WKHLUFDSDFLW\DV IDLOHG WR VSHFLI\ WKH FDSDFLW\ LQ ZKLFK WKH SODLQWLIIV ZHUH VWDWHRIILFLDOVl:HOOVY%URZQ )G WK&LU VXLQJ :HOOPDQ 7KH SODLQWLIIV ILOHG D VHFRQG PRWLRQ WR DPHQGLQZKLFKWKH\VSHFLILHGWKDWWKH\ZHUHVXLQJ:HOOPDQ DVDQLQGLYLGXDO7KHPDJLVWUDWHMXGJHGHQLHGWKHPRWLRQWR :KHUHQRH[SOLFLWVWDWHPHQWDSSHDUVLQWKHSOHDGLQJVWKLV DPHQGDQGWKHGLVWULFWFRXUWDIILUPHG &LUFXLW XVHV D mFRXUVH RI SURFHHGLQJVl WHVW WR GHWHUPLQH ZKHWKHUWKH GHIHQGDQWVKDYHUHFHLYHGQRWLFHRIWKH :H UHYLHZ D GLVWULFW FRXUWjV GHFLVLRQ WR GHQ\ OHDYH WR SODLQWLIIjVLQWHQWWRKROGWKHPSHUVRQDOO\OLDEOH6HH0RRUHY DPHQG D FRPSODLQW IRU DEXVH RI GLVFUHWLRQ 6HH )RPDQ Y &LW\ RI +DUULPDQ )G WK &LU HQ 'DYLV86 ,QWKLVFDVHWKHPDJLVWUDWH EDQF m:KHQD SODLQWLIIIDLOVWRDIILUPDWLYHO\SOHDG MXGJH GHQLHG WKH PRWLRQ WR DPHQG EHFDXVH KH IHOW WKDW DQ FDSDFLW\ LQ WKH FRPSODLQW ZH WKHQ ORRN WR WKH FRXUVH RI DGGLWLRQDODPHQGPHQWmZRXOGFDXVHXQGXHGHOD\l+HDOVR SURFHHGLQJVWRGHWHUPLQHZKHWKHU:HOOVjFRQFHUQDERXW QRWHG WKDW WKH SODLQWLIIV IDLOHG WR FODULI\ WKH FDSDFLWLHV LQ QRWLFHKDVEHHQVDWLVILHGl 8QGHUWKLVWHVWZHFRQVLGHUWKH ZKLFKWKH\ZHUHVXLQJWKHGHIHQGDQWVHYHQWKRXJKWKH\KDG QDWXUHRIWKHSODLQWLIIj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j DFWLRQLVEDUUHGXQGHUWKH ,Q0RRUHWKHFRXUWQRWHGWKDWWKHFDSWLRQRQWKHFRPSODLQW (OHYHQWK$PHQGPHQWEHFDXVHWKHSODLQWLIIVIDLOHGWRVSHFLI\ OLVWHG RQO\ WKH GHIHQGDQW SROLFH RIILFHUVj QDPHV QRW WKHLU WKHFDSDFLW\LQZKLFKWKH\ZHUHVXLQJ:HOOPDQ RIILFLDOWLWOHVDQGWKDWWKHFRPSODLQWUHIHUUHGWRWKHRIILFHUV WKURXJKRXWDVWKHmLQGLYLGXDOGHIHQGDQWVl,GDW7KH :HEHJLQZLWKWKHFRPSODLQWLWVHOI:HFDQQRWVD\WKDW FRPSODLQWDOVRVWDWHGWKDWWKHRIILFHUVDFWHGmIRUWKHPVHOYHV HLWKHUWKHRULJLQDOFRPSODLQWRUWKHILUVWDPHQGHGFRPSODLQW DQGIRUWKH&LW\l,G0RRUHVRXJKWFRPSHQVDWRU\GDPDJHV SODFHG :HOOPDQ RQ QRWLFH WKDW KH ZDV EHLQJ VXHG DV DQ DQGSXQLWLYHGDPDJHVDJDLQVWmHDFKRIWKHGHIHQGDQWVl,G LQGLYLGXDO,IDQ\WKLQJWKHFRPSODLQWVXJJHVWVWKDW:HOOPDQ %DVHGRQWKHVHDVSHFWVRIWKHFRPSODLQWWKHFRXUWFRQFOXGHG ZDV EHLQJ VXHG LQ KLV RIILFLDO FDSDFLW\ 7KH DPHQGHG WKDWWKHGHIHQGDQWVZHUHOLNHO\RQQRWLFHWKDWWKH\ZHUHEHLQJ FRPSODLQW DOOHJHV WKDW m'HIHQGDQW &RPPLVVLRQHU %LOO\ VXHGDVLQGLYLGXDOV,QDGGLWLRQWKH0RRUHFRXUWIRXQGWKDW :HOOPDQDWWKHWLPHRIWKHVKRRWLQJRI*DU\6KHSKHUGKDG WKH SODLQWLIIjV UHVSRQVH WR WKH RIILFHUVj PRWLRQ WR GLVPLVV RYHUDOOFKDUJHRIDQGVXSHUYLVRULDO>VLF@UHVSRQVLELOLW\RYHU mFODULILHGDQ\UHPDLQLQJDPELJXLW\lZKHQLWVWDWHGWKDWWKH WKH.HQWXFN\6WDWH3ROLFHDQGZDVUHVSRQVLEOHIRUWKHWUDLQLQJ RIILFHUVZHUHmEHLQJVXHGLQWKHLULQGLYLGXDOFDSDFLWLHVl,G DQGVXSHUYLVLRQRIRIILFHUVLQLWl7KHFRPSODLQWJRHVRQWR DOOHJH WKDW WKH mPXUGHUl RI *DU\ 6KHSKHUG mZDV FOHDUO\ ,QWKHLQVWDQWPDWWHUWKHSODLQWLIIVIDLOHGWRVSHFLI\LQWKHLU FRPPLWWHGXQGHUFRORURIVWDWHODZl,QWKHFRPSODLQWWKH FRPSODLQW WKDW WKH\ ZHUH VXLQJ :HOOPDQ DV DQ LQGLYLGXDO SODLQWLIIVDOVRDOOHJHWKDW:HOOPDQmKDGVXSHUYLVRULDO>VLF@
Reference
- Status
- Published