Thurman v. Dart, No. 1:2018cv02720 - Document 42 (N.D. Ill. 2018)

Court Description: MEMORANDUM Opinion and Order signed by the Honorable Virginia M. Kendall on 10/26/2018. The Court grants in part and denies in part Defendant's Motion to Dismiss 15 . Specifically, the Motion is granted with regard to Counts IV and VII; the Mot ion is denied in all other respects. See Order for further details. If parties are unable to settle the case before Magistrate Judge Mason on 12/5/2018, they are to file a Status Report that shall be due by 12/12/2018. Status hearing set for 1/10/2019 at 9:00 AM. Mailed notice(lk, )
Download PDF
Thurman v. Dart Doc. 42 ,1 7+( 81,7(' 67$7(6 ',675,&7 &2857 )25 7+( 1257+(51 ',675,&7 2) ,//,12,6 ($67(51 ',9,6,21 %5<$17 7+850$1 3ODLQWLII Y 81.12:1 &22. &2817< 6+(5,)) (03/2<((6 &22. &2817< 6+(5,)) 7+20$6 - '$57 DQG 7+( &2817< 2) &22. 'HIHQGDQWV 1R & +RQ 9LUJLQLD 0 .HQGDOO 0(025$1'80 23,1,21 $1' 25'(5 3ODLQWLII %U\DQW 7KXUPDQ EULQJV WKLV DFWLRQ DJDLQVW &RRN &RXQW\ &RRN &RXQW\ 6KHULII 7KRPDV - 'DUW DQG VHYHUDO XQNQRZQ LQGLYLGXDO &RRN &RXQW\ HPSOR\HHV IRU YLRODWLRQV RI WKH $PHULFDQV ZLWK 'LVDELOLWLHV $FW ³$'$´ 8 6 & HW VHT WKH 5HKDELOLWDWLRQ $FW 8 6 & DQG YDULRXV RI KLV FLYLO ULJKWV VWHPPLQJ IURP GD\V KH VSHQW DV D SUHWULDO GHWDLQHH VKDFNOHG WR D KRVSLWDO EHG &XUUHQWO\ EHIRUH WKH &RXUW LV 6KHULII 'DUW¶V 0RWLRQ WR 'LVPLVV 'NW &RRN &RXQW\ VXEVHTXHQWO\ PRYHG WR MRLQ 6KHULII 'DUW¶V 0RWLRQ WR 'LVPLVV ZKLFK WKH &RXUW JUDQWHG 6HH 'NW )RU WKH UHDVRQV VHW IRUWK EHORZ WKH PRWLRQ WR GLVPLVV LV JUDQWHG LQ SDUW DQG GHQLHG LQ SDUW %$&.*5281' 7KH IROORZLQJ IDFWV DUH DOOHJHG LQ 7KXUPDQ¶V &RPSODLQW DQG DVVXPHG WR EH WUXH IRU SXUSRVHV RI 'HIHQGDQWV¶ 0RWLRQ WR 'LVPLVV 6HH &DOGHURQ 5DPLUH] Y 0F&DPHQW ) G WK &LU 2Q 0DUFK 7KXUPDQ ZDV DUUHVWHG E\ &KLFDJR 3ROLFH 2IILFHUV DQG FKDUJHG ZLWK XQODZIXO SRVVHVVLRQ RI D ZHDSRQ XQODZIXO SRVVHVVLRQ RI DPPXQLWLRQ DQG XQODZIXO Dockets.Justia.com SRVVHVVLRQ RI D FRQWUROOHG VXEVWDQFH 'NW DW 'XULQJ WKH DUUHVW 7KXUPDQ ZKR LV DQG PRUELGO\ REHVH FRPSODLQHG RI FKHVW SDLQV DQG ZDV WDNHQ WR 0HUF\ +RVSLWDO ,G DW 7KH QH[W GD\ D &RRN &RXQW\ MXGJH VHW EDLO DW EXW 7KXUPDQ ZDV XQDEOH WR SRVW ERQG VR 'DUW DVVXPHG FXVWRG\ RI KLP DW WKH KRVSLWDO ZKHUH FHUWDLQ XQNQRZQ &RRN &RXQW\ 6KHULII (PSOR\HHV ³2IILFHUV´ ZHUH SUHVHQW DQG NHSW 7KXUPDQ GHWDLQHG DW ± 2Q 0DUFK ,G 0HUF\ +RVSLWDO FOHDUHG 7KXUPDQ IRU UHOHDVH WR WKH &RRN &RXQW\ -DLO EXW ERWK &HUPDN +HDOWK 6HUYLFHV ³&HUPDN´ ²D GLYLVLRQ RI WKH &RRN &RXQW\ +HDOWK DQG +RVSLWDOV 6\VWHP HVWDEOLVKHG E\ WKH &RXQW\ WR SURYLGH KHDOWKFDUH WR GHWDLQHHV LQ WKH FXVWRG\ RI WKH 6KHULII²DQG WKH &RRN &RXQW\ -DLO UHIXVHG WR DFFHSW KLP GXH WR KLV REHVLW\ ,G DW ± 2Q 0DUFK (OL]DEHWK )HOGPDQ D &HUPDN GRFWRU LQFRUUHFWO\ UHSRUWHG LQ D OHWWHU WR WKH MXGJH SUHVLGLQJ RYHU 7KXUPDQ¶V FULPLQDO FDVH WKDW KH ZDV QRQ DPEXODWRU\ DQG LW ZDV QRW SRVVLEOH IRU &HUPDN WR KRXVH KLP ,G DW ± 6RPH HLJKW GD\V ODWHU 'U )HOGPDQ VXEPLWWHG D VZRUQ VWDWHPHQW WR WKH MXGJH DJDLQ VWDWLQJ WKDW 7KXUPDQ ZDV QRQ DPEXODWRU\ DQG &HUPDN FRXOG QRW KRXVH KLP DQG DOVR VWDWLQJ DJDLQ HUURQHRXVO\ WKDW 7KXUPDQ KDG JLYHQ KHU SHUPLVVLRQ WR GLVFORVH KLV KLVWRU\ RI PHGLFDO WUHDWPHQW DW 7KXUPDQ¶V FDVH ZDV RQ WKH FRXUW FDOO RQ WHQ GDWHV ,G EXW WKH ILUVW WLPH 7KXUPDQ DSSHDUHG LQ FRXUW DQG ZDV IRUPDOO\ DUUDLJQHG RQ WKH FKDUJHV ZDV 0D\ ² GD\V DIWHU KLV DUUHVW DW :LWK WKH KHOS RI D IULHQG ZKR ZDV SUHVHQW DW WKH ,G DUUDLJQPHQW KH SRVWHG ERQG VHYHQ GD\V ODWHU RQ 0D\ DQG KH ZDV UHOHDVHG IURP KLV KRVSLWDO GHWHQWLRQ DW ,G ,Q WRWDO 7KXUPDQ ZDV GHWDLQHG LQ WKH KRVSLWDO IRU GD\V VKDFNOHG WR D EHG DW DOO WLPHV DW ± +LV ZULVW ZDV ,G DW (YHQ WKRXJK PHGLFDO SHUVRQQHO XUJHG WKH 2IILFHUV ,G $W WULDO RQ -DQXDU\ D VWDWH FRXUW MXGJH IRXQG 7KXUPDQ QRW JXLOW\ E\ ZD\ RI GLUHFWHG YHUGLFW RQ WKH JXQ DQG DPPXQLWLRQ SRVVHVVLRQ FKDUJHV DQG WKH 6WDWH HQWHUHG D DW Q QROOH SURVHTXL RQ WKH GUXJ FKDUJH 'NW WR OHW 7KXUPDQ JHW XS ZDON DURXQG DQG XVH WKH UHVWURRP²DQG KH ZDV SK\VLFDOO\ DEOH WR GR WKHVH WKLQJV²WKH 2IILFHUV UHSHDWHGO\ UHIXVHG DQG 7KXUPDQ ZDV RQO\ XQVKDFNOHG WR XVH WKH UHVWURRP HLJKW WLPHV GXULQJ WKH HQWLUH GD\ SHULRG ,G DW ± %HFDXVH KH ZDV QRW SHUPLWWHG WR PRYH 7KXUPDQ GHYHORSHG LQIHFWHG EHG VRUHV DQG EHFDPH UHOLDQW RQ D ZKHHOFKDLU ,G DW ,Q DGGLWLRQ WR UHVWULFWLQJ KLV PRYHPHQW WKH 2IILFHUV GLG QRW DOORZ 7KXUPDQ WR PDNH RU UHFHLYH DQ\ SKRQH FDOOV GXULQJ WKH ILUVW KRXUV RI KLV DGPLVVLRQ WR 0HUF\ +RVSLWDO RU DQ\ VXEVHTXHQW WLPH WR PHDQLQJIXOO\ FRPPXQLFDWH ZLWK DQ\RQH GXULQJ KLV GHWHQWLRQ LQFOXGLQJ DQ DWWRUQH\ WR KDYH YLVLWRUV RU WR PHDQLQJIXOO\ SDUWLFLSDWH LQ KLV FULPLQDO FDVH DW ± ,G 7KH 2IILFHUV DOVR GHQLHG 7KXUPDQ¶V UHTXHVWV IRU D SHQ DQG SDSHU VR WKDW KH FRXOG ZULWH OHWWHUV ,G DW ± 7KXUPDQ DOOHJHV WKDW WKHVH UHVWULFWLRQV SUHYHQWHG KLP IURP UDLVLQJ PRQH\ WR SRVW ERQG DW DQ HDUOLHU GDWH DQG DOVR WKDW WKH\ ZHUH VWULFWHU WKDQ WKRVH LQ SODFH IRU LQPDWHV DW WKH &RRN &RXQW\ -DLO ZKR FDQ PDNH SKRQH FDOOV ZULWH OHWWHUV FRPPXQLFDWH ZLWK DWWRUQH\V DQG EH YLVLWHG E\ IDPLO\ DQG IULHQGV ,G DW ±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³GHQLDO RI DFFHVV WR FRXUWV DQG FRXQVHO´ &RXQW ,9 D FODLP DJDLQVW WKH 2IILFHUV IRU YLRODWLRQ RI KLV ULJKW WR WLPHO\ DUUDLJQPHQW &RXQW 9 D FODLP IRU LQGHPQLILFDWLRQ XQGHU ,/&6 E\ &RRN &RXQW\ &RXQW 9, DQG D PXQLFLSDO FODLP SXUVXDQW WR 0RQHOO Y 'HS¶W RI 6RF 6HUYV RI &LW\ RI 1 < 8 6 DJDLQVW 6KHULII 'DUW DQG &RRN &RXQW\ $V UHOLHI 7KXUPDQ VHHNV FRPSHQVDWRU\ DQG SXQLWLYH GDPDJHV IHHV DQG FRVWV 'NW DW $W SUHVHQW WKH XQNQRZQ 2IILFHUV KDYH QRW EHHQ LGHQWLILHG RU VHUYHG 6KHULII 'DUW KDV ILOHG D 0RWLRQ WR 'LVPLVV DOO RI 7KXUPDQ¶V FODLPV &RRN &RXQW\ KDV MRLQHG WKH PRWLRQ 6HH 'NWV /(*$/ 67$1'$5' $ 5XOH E PRWLRQ FKDOOHQJHV WKH OHJDO VXIILFLHQF\ RI WKH FRPSODLQW )RU SXUSRVHV RI D PRWLRQ WR GLVPLVV XQGHU 5XOH E WKH &RXUW ³µDFFHSW>V@ DV WUXH DOO RI WKH ZHOO SOHDGHG IDFWV LQ WKH FRPSODLQW DQG GUDZ DOO UHDVRQDEOH LQIHUHQFHV LQ IDYRU RI WKH SODLQWLII ¶´ &DOGHURQ 5DPLUH] ) G DW TXRWLQJ .XELDN Y &LW\ RI &KLFDJR ) G WK &LU 7R VXUYLYH D PRWLRQ WR GLVPLVV XQGHU 5XOH E D SODLQWLII¶V FRPSODLQW PXVW DOOHJH IDFWV ZKLFK ZKHQ WDNHQ DV WUXH ³µSODXVLEO\ VXJJHVW WKDW WKH SODLQWLII KDV D ULJKW WR UHOLHI UDLVLQJ WKDW SRVVLELOLW\ DERYH D VSHFXODWLYH OHYHO ¶´ &RFKUDQ Y ,OO 6WDWH 7ROO +LJKZD\ $XWK ) G WK &LU TXRWLQJ ((2& Y &RQFHQWUD +HDOWK 6HUYV ,QF ) G WK &LU ³6SHFLILF IDFWV DUH XQQHFHVVDU\ EXW WKH FRPSODLQW PXVW JLYH WKH GHIHQGDQW IDLU QRWLFH RI ZKDW WKH FODLP LV DQG WKH JURXQGV XSRQ ZKLFK LW UHVWV ´ +XUL Y 2IILFH RI WKH &KLHI -XGJH RI WKH &LUFXLW &RXUW RI &RRN &W\ ) G WK &LU ³7KUHDGEDUH UHFLWDOV RI WKH HOHPHQWV RI D FDXVH RI DFWLRQ VXSSRUWHG E\ PHUH FRQFOXVRU\ VWDWHPHQWV GR QRW VXIILFH ´ $VKFURIW Y ,TEDO 8 6 ,Q DGGLWLRQ D ³SODLQWLII¶V REOLJDWLRQ WR SURYLGH WKH JURXQGV RI >KHU@ HQWLWOH>PHQW@ WR UHOLHI UHTXLUHV PRUH WKDQ ODEHOV DQG FRQFOXVLRQ ´ &DPDVWD Y -RV $ %DQN &ORWKLHUV ,QF ) G WK &LU 7KH &RXUW UHDGV WKH FRPSODLQW DQG DVVHVVHV LWV SODXVLELOLW\ DV D ZKROH 6HH $WNLQV Y &LW\ RI &KLFDJR ) G WK &LU ',6&866,21 $ $'$ DQG 5HKDELOLWDWLRQ $FW &ODLP &RXQW , &RXQW , RI WKH &RPSODLQW DOOHJHV FODLPV IRU YLRODWLRQV RI RI WKH 5HKDELOLWDWLRQ $FW DQG 7LWOH ,, RI WKH $'$ E\ 6KHULII 'DUW DQG &RRN &RXQW\ UHODWHG WR WKH WLPH 7KXUPDQ VSHQW DW 0HUF\ +RVSLWDO LQVWHDG RI DW &RRN &RXQW\ -DLO RU &HUPDN 6SHFLILFDOO\ 7KXUPDQ DOOHJHV WKDW ³WKH 6KHULII DQG &RRN &RXQW\ KDG DJUHHG WR SDUWLFLSDWH LQ D FRRUGLQDWHG DSSURDFK WR WKH GHOLYHU\ RI KHDOWK FDUH WR GHWDLQHHV LQ WKH FXVWRG\ RI WKH 6KHULII DQG WR GHYHORS PXWXDOO\ DFFHSWDEOH SROLFLHV DQG SURFHGXUHV WR DFFRPPRGDWH ERWK VHFXULW\ UHTXLUHPHQWV DQG FOLQLFDO QHHGV ´ 'NW DW <HW WKH\ IDLOHG WR DFFHSW KLP DW HLWKHU &RRN &RXQW\ -DLO RU &HUPDN RQ DFFRXQW RI KLV REHVLW\ ,G DW ± 6HFWLRQ SURKLELWV D ³TXDOLILHG LQGLYLGXDO ZLWK D GLVDELOLW\´ IURP EHLQJ ³H[FOXGHG IURP WKH SDUWLFLSDWLRQ LQ EH GHQLHG WKH EHQHILWV RI RU EH VXEMHFWHG WR GLVFULPLQDWLRQ XQGHU DQ\ SURJUDP RU DFWLYLW\ UHFHLYLQJ )HGHUDO ILQDQFLDO DVVLVWDQFH ´ DV D UHVXOW RI KLV GLVDELOLW\ 8 6 & D 6LPLODUO\ 7LWOH ,, RI WKH $'$ SURYLGHV WKDW ³QR TXDOLILHG LQGLYLGXDO ZLWK D GLVDELOLW\ VKDOO E\ UHDVRQ RI VXFK GLVDELOLW\ EH H[FOXGHG IURP SDUWLFLSDWLRQ LQ RU EH GHQLHG WKH EHQHILWV RI WKH VHUYLFHV SURJUDPV RU DFWLYLWLHV RI D SXEOLF HQWLW\ RU EH VXEMHFWHG WR GLVFULPLQDWLRQ E\ DQ\ VXFK HQWLW\ ´ 8 6 & *LYHQ WKDW WKH DQDO\VLV XQGHU HDFK VWDWXWH LV WKH VDPH ZLWK WKH H[FHSWLRQ WKDW WKH 5HKDELOLWDWLRQ $FW UHTXLUHV UHFHLSW RI IHGHUDO IXQGLQJ DQG WKDW 7KXUPDQ FDQ UHFRYHU XQGHU RQO\ RQH VWDWXWH WKH FRXUW ZLOO DQDO\]H WKH WZR DV RQH UHIHUULQJ SUHGRPLQDQWO\ WR WKH $'$ 6HH -DURV Y ,OO 'HS¶W RI &RUU ) G ± WK &LU 7KXUPDQ VXHG 6KHULII 'DUW LQ KLV RIILFLDO FDSDFLW\ VR WKH VXLW LV WUHDWHG DV RQH DJDLQVW WKH FRXQW\ LWVHOI 6HH 'NW DW :DONHU Y 6KHDKDQ ) G WK &LU LQ WKLV FODLP LV GXSOLFDWLYH LQGHPQLILHU 7KXV WKH QDPLQJ RI WKH &RXQW\ ,Q JHQHUDO WKH &RXUW UHFRJQL]HV WKDW WKH FRXQW\ LV D QDPHG GHIHQGDQW DV DQ 6HH &DUYHU Y 6KHULII RI /D6DOOH &RXQW\ ) G WK &LU )RU D 7LWOH ,, FODLP D SODLQWLII PXVW VKRZ WKDW KH LV D ³TXDOLILHG LQGLYLGXDO ZLWK D GLVDELOLW\´ WKDW KH ZDV GHQLHG ³WKH EHQHILWV RI WKH VHUYLFHV SURJUDPV RU DFWLYLWLHV RI D SXEOLF HQWLW\´ RU RWKHUZLVH VXEMHFWHG WR GLVFULPLQDWLRQ E\ VXFK DQ HQWLW\ DQG WKDW WKH GHQLDO RU GLVFULPLQDWLRQ ZDV ³E\ UHDVRQ RI KLV GLVDELOLW\ ´ /DF\ Y &RRN &RXQW\ ,OO ) G WK &LU TXRWLQJ /RYH Y :HVWYLOOH &RUU &WU ) G WK &LU 8 6 & VHH DOVR &7/ H[ UHO 7UHEDWRVNL Y $VKODQG 6FK 'LVW ) G ± WK &LU WR SURYH GLVDELOLW\ GLVFULPLQDWLRQ D SODLQWLII PXVW VKRZ WKDW GHIHQGDQW LQWHQWLRQDOO\ DFWHG RQ WKH EDVLV RI GLVDELOLW\ GHIHQGDQW UHIXVHG WR SURYLGH D UHDVRQDEOH PRGLILFDWLRQ RU WKH GHIHQGDQW¶V UXOH GLVSURSRUWLRQDOO\ LPSDFWV GLVDEOHG SHRSOH ³6WDWH SULVRQV IDOO VTXDUHO\ ZLWKLQ WKH VWDWXWRU\ GHILQLWLRQ RI µSXEOLF HQWLW\ ¶ ZKLFK LQFOXGHV µDQ\ GHSDUWPHQW DJHQF\ VSHFLDO SXUSRVH GLVWULFW RU RWKHU LQVWUXPHQWDOLW\ RI D 6WDWH RU 6WDWHV RU ORFDO JRYHUQPHQW ´¶ 3HQQ 'HS¶W RI &RUU Y <HVNH\ 8 6 TXRWLQJ 8 6 & % VHH &UDZIRUG Y ,QG 'HSW RI &RUU ) G WK &LU KROGLQJ ³WKDW D VWDWH SULVRQHU FDQ PDNH RXW D SULPD IDFLH FDVH RI YLRODWLRQ RI WKH $PHULFDQV ZLWK 'LVDELOLWLHV $FW´ VHH DOVR 7KRPDV Y 'DUW :/ DW 1 ' ,OO $XJ ³7LWOH ,, RI WKH $'$ SURWHFWV GHWDLQHHV ZLWK TXDOLILHG GLVDELOLWLHV DJDLQVW GLVFULPLQDWLRQ E\ D SXEOLF HQWLW\> @ DQG UHTXLUHV MDLOV WR UHDVRQDEO\ DFFRPPRGDWH WKHLU GLVDELOLWLHV ´ TXRWLQJ %RVWRQ Y 'DUW :/ DW 1 ' ,OO $XJ 6WLOO 'HIHQGDQWV DUJXH WKDW 7KXUPDQ KDV IDLOHG WR VXIILFLHQWO\ DOOHJH DQ\ RI WKH HOHPHQWV RI KLV $'$ FODLP 6HH 'NW DW ± $V WR WKH ILUVW HOHPHQW²WKDW 7KXUPDQ ZDV D TXDOLILHG LQGLYLGXDO ZLWK D GLVDELOLW\²WKH $'$ GHILQHV D ³GLVDELOLW\´ DV ³ $ D SK\VLFDO RU PHQWDO LPSDLUPHQW WKDW VXEVWDQWLDOO\ OLPLWV RQH RU PDMRU OLIH DFWLYLWLHV RI VXFK LQGLYLGXDO % D UHFRUG RI VXFK DQ LPSDLUPHQW RU & EHLQJ UHJDUGHG DV KDYLQJ VXFK DQ LPSDLUPHQW ´ 8 6 & $±& ³0DMRU OLIH DFWLYLWLHV´ LV GHILQHG WR LQFOXGH FDULQJ IRU RQHVHOI VOHHSLQJ FRQFHQWUDWLQJ ZRUNLQJ HWF 8 6 & 7KXUPDQ¶V &RPSODLQW SXUVXHV WKH ³DFWXDO GLVDELOLW\´ SURQJ DOOHJLQJ WKDW KH ³VXIIHUHG IURP VHYHUDO SK\VLFDO LPSDLUPHQWV JHQHUDOO\ UHODWHG WR KLV GLDJQRVHG µPRUELG REHVLW\ ¶ ZKLFK VXEVWDQWLDOO\ OLPLWHG KLV DELOLW\ WR ZDON VOHHS EUHDWKH VWDQG OLIW EHQG ZRUN DQG FDUH IRU KLPVHOI ´ 'NW DW VHH DOVR LG DW ³7KXUPDQ¶V SK\VLFDO LPSDLUPHQWV JHQHUDOO\ UHODWHG WR KLV GLDJQRVHG µPRUELG REHVLW\ ¶ UHQGHUHG KLP D TXDOLILHG LQGLYLGXDO ZLWK D GLVDELOLW\ IRU SXUSRVHV RI WKH >$'$@ ´ 'HIHQGDQWV DUJXH WKDW REHVLW\ DORQH LV QRW D GLVDELOLW\ XQGHU WKH $'$ 'NW DW ± 'NW DW 'HIHQGDQWV DUH FRUUHFW WKDW WKLV H[DFW LVVXH UHPDLQV XQGHFLGHG LQ WKLV FLUFXLW $OO DSSHOODWH FRXUWV WR FRQVLGHU WKH LVVXH KDYH KHOG WKDW IRU REHVLW\ WR EH FRQVLGHUHG D GLVDELOLW\ WKHUH PXVW EH DQ XQGHUO\LQJ GLVRUGHU WKDW FDXVHV WKH REHVLW\ 6HH H J 0RUULVV Y %16) 5\ &R ) G WK &LU ³7DNHQ DV D ZKROH WKH UHOHYDQW VWDWXWRU\ DQG UHJXODWRU\ ODQJXDJH PDNHV LW FOHDU WKDW IRU REHVLW\ WR TXDOLI\ DV D SK\VLFDO LPSDLUPHQW²DQG WKXV D GLVDELOLW\²XQGHU WKH $'$ LW PXVW UHVXOW IURP DQ XQGHUO\LQJ SK\VLRORJLFDO GLVRUGHU RU FRQGLWLRQ´ ((2& Y :DWNLQV 0RWRU /LQHV ,QF ) G ± WK &LU )UDQFLV Y &LW\ RI 0HULGHQ ) G G &LU $OWKRXJK FHUWDLQ GLVWULFW FRXUWV KDYH KHOG WKDW REHVLW\ DORQH FDQ FRQVWLWXWH D GLVDELOLW\ MXGJHV LQ WKLV GLVWULFW KDYH KHOG²DW WKH VXPPDU\ MXGJPHQW SKDVH²WKDW VHYHUH REHVLW\ LV QRW D GLVDELOLW\ XQGHU WKH $'$ XQOHVV WKHUH LV DQ XQGHUO\LQJ SK\VLRORJLFDO FRQGLWLRQ 6HH H J 5LFKDUGVRQ Y &KL 7UDQVLW $XWK ) 6XSS G ± 1 ' ,OO 1RY ³>7@KLV &RXUW FRQFOXGHV WKDW VHYHUH REHVLW\ E\ LWVHOI IDLOV WR FRQVWLWXWH D GLVDELOLW\ XQGHU WKH $'$ 5DWKHU WR TXDOLI\ DV D SURWHFWHG SK\VLFDO LPSDLUPHQW FODLPDQWV XQGHU WKH $'$ PXVW VKRZ WKDW WKHLU VHYHUH REHVLW\ LV FDXVHG E\ DQ XQGHUO\LQJ SK\VLRORJLFDO GLVRUGHU RU FRQGLWLRQ 7KLV UHVXOW IROORZV IURP D SODLQ UHDGLQJ RI WKH $'$ DV DPHQGHG DQG WKH ((2&¶V UHJXODWLRQV DQG LQWHUSUHWLYH JXLGDQFH RQ WKH GHILQLWLRQV RI GLVDELOLW\ DQG SK\VLFDO LPSDLUPHQW ´ 6KHOO Y %XUOLQJWRQ 1RUWKHUQ 6DQWD )H 5DLOZD\ &R :/ DW 1 ' ,OO 0DUFK DGRSWLQJ ³WKH PDMRULW\ YLHZ WKDW REHVLW\ FRQVWLWXWHV DQ $'$ LPSDLUPHQW RQO\ ZKHQ LW UHVXOWV IURP DQ XQGHUO\LQJ SK\VLRORJLFDO FRQGLWLRQ RU GLVRUGHU´ FI +DUJHWW Y $GDPV :/ DW & ' ,OO 6HSW ³7KHUH LV D VXEVWDQWLDO TXHVWLRQ ZKHWKHU SODLQWLII¶V PRUELG REHVLW\ ZKLFK LV QRW WKH UHVXOW RI DQ\ SK\VLRORJLFDO GLVRUGHU DORQH DPRXQWHG D GLVDELOLW\ XQGHU WKH $'$ ´ .HHSLQJ WKLV LQ PLQG KRZHYHU GRHV QRW SUHFOXGH 7KXUPDQ¶V DFWXDO GLVDELOLW\ $'$ FODLP DW WKLV VWDJH (YHQ LI 7KXUPDQ XOWLPDWHO\ LV UHTXLUHG WR SURYH WKDW KLV REHVLW\ ZDV FDXVHG E\ D SK\VLRORJLFDO GLVRUGHU RU WR HODERUDWH RQ KLV REHVLW\ UHODWHG FRQGLWLRQV KH ZDV QRW UHTXLUHG WR DOOHJH WKH VDPH 6HH H J 5LFKDUGVRQ Y &KL 7UDQVLW $XWK :/ DW 1 ' ,OO 2FW /RZH Y $P (XURFRSWHU //& :/ DW ± 1 ' 0LVV 'HF QRWLQJ WKDW ³D PRWLRQ WR GLVPLVV LV QRW WKH SURSHU PHWKRG IRU HYDOXDWLQJ WKH PHULWV RI 3ODLQWLII¶V´ FODLP WKDW REHVLW\ LV D GLVDELOLW\ $V FXUUHQWO\ GUDIWHG WKH &RPSODLQW DOOHJHV WKDW KH VXIIHUV IURP ³VHYHUDO SK\VLFDO LPSDLUPHQWV´ UHODWHG WR KLV REHVLW\ 7KH &RXUW DFFHSWV WKLV ZHOO SOHG DOOHJDWLRQ DV WUXH :KHWKHU RU QRW 7KXUPDQ FDQ SURYH WKDW KLV ZHLJKW ULVHV WR WKH OHYHO RI D GLVDELOLW\ XQGHU WKH $'$ LV QRW DW LVVXH KHUH EHFDXVH D PRWLRQ WR GLVPLVV LV QRW WKH SURSHU YHKLFOH WR HYDOXDWH WKH PHULWV RI KLV VSHFLILF DVVHUWLRQV 6HH 6ZLHUNLHZLF] Y 6RUHPD 1 $ 8 6 VWDWLQJ WKDW ³FODLPV ODFNLQJ PHULW PD\ EH GHDOW ZLWK WKURXJK VXPPDU\ MXGJPHQW XQGHU 5XOH ´ 0RUHRYHU LQ KLV UHVSRQVH EULHI 7KXUPDQ H[SDQGV KLV GLVDELOLW\ WKHRU\ WR LQFOXGH WKH ³UHJDUGHG DV´ SURQJ WKH SRVVLELOLW\ WKDW 'HIHQGDQWV UHIXVHG KLV WUDQVIHU LQWR &RRN &RXQW\ -DLO RU &HUPDN EHFDXVH 6KHULII 'DUW ³UHJDUGHG >7KXUPDQ@ DV KDYLQJ >REHVLW\ @UHODWHG LPSDLUPHQWV ´ OLNH KHDUW GLVHDVH GLDEHWHV VOHHS DSQHD RU DQ\ RWKHU GLVDEOLQJ LPSDLUPHQW VXFK DV RQH WKDW ZRXOG PDNH KLP LPPRELOH 'NW DW $V DQ LQLWLDO PDWWHU DOOHJDWLRQV VXFK DV WKHVH WKDW DUH UDLVHG IRU WKH ILUVW WLPH LQ D UHVSRQVH EULHI DQG DUH RXWVLGH WKH SOHDGLQJV DUH JHQHUDOO\ QRW FRQVLGHUHG RQ D PRWLRQ WR GLVPLVV 6HH )HG 5 &LY 3 E +RZHYHU D SODLQWLII RSSRVLQJ D 5XOH E PRWLRQ RU DSSHDOLQJ D GLVPLVVDO ³KDV PXFK PRUH IOH[LELOLW\´ DQG ³PD\ HODERUDWH RQ KLV IDFWXDO DOOHJDWLRQV´ LQ WKH FRPSODLQW *HLQRVN\ Y &LW\ RI &KLFDJR ) G Q WK &LU %XW WKLV IOH[LELOLW\ LV QRW ZLWKRXW OLPLWDWLRQ 7KH &RXUW FRQVLGHUV HODERUDWLRQV GLVFORVHG IRU WKH ILUVW WLPH LQ D UHVSRQVH EULHI RQO\ ³VR ORQJ DV WKH QHZ HODERUDWLRQV DUH FRQVLVWHQW ZLWK WKH SOHDGLQJV ´ ,G VHH DOVR +HQJ Y +HDYQHU %H\HUV 0LKODU //& ) G WK &LU DIILUPLQJ JUDQW RI PRWLRQ WR VWULNH H[KLELW WR SODLQWLII¶V UHVSRQVH EULHI WKDW ZDV QRW PDWHULDO WR RU FRQVLVWHQW ZLWK WKH FRPSODLQW /LNHZLVH WKH &RXUW FRQVLGHUV D QHZ WKHRU\ SUHVHQWHG LQ DQ RSSRVLQJ EULHI RQO\ LI LW LV VXSSRUWHG E\ DOOHJDWLRQV LQ WKH FRPSODLQW 6HH (SVWHLQ Y (SVWHLQ ) G Q WK &LU UHMHFWLQJ WKHRU\ SUHVHQWHG IRU WKH ILUVW WLPH RQ DSSHDO ZKHUH LW ZDV XQVXSSRUWHG E\ WKH DOOHJDWLRQV LQ WKH DPHQGHG FRPSODLQW +HUH WKH SHUFHLYHG GLVDELOLW\ WKHRU\ UDLVHG LQ 7KXUPDQ¶V UHVSRQVH EULHI²WR WKH H[WHQW LW FRQFHUQV 7KXUPDQ¶V DELOLW\ WR PRYH²LV ODUJHO\ FRQVLVWHQW ZLWK WKH DOOHJDWLRQV LQ &RXQW , RI WKH &RPSODLQW SDUWLFXODUO\ WKH DOOHJDWLRQV WKDW &HUPDN HPSOR\HH 'U )HOGPDQ KDG SURYLGHG FHUWDLQ UHSRUWV WKDW 7KXUPDQ ZDV ³QRQ DPEXODWRU\´ DQG FRXOG QRW EH KRXVHG DW &HUPDN 'NW DW ± 7KH &RXUW WKXV FRQFOXGHV WKDW LQ DGGLWLRQ WR KLV DFWXDO GLVDELOLW\ $'$ FODLP 7KXUPDQ KDV VWDWHG D UHJDUGHG DV $'$ FODLP E\ DOOHJLQJ WKDW 'HIHQGDQWV SHUFHLYHG KLP DV GLVDEOHG RQ DFFRXQW RI KLV REHVLW\ DQG LQDELOLW\ WR ZDON DQG WKDW KH ZDV GHQLHG WUDQVIHU WR HLWKHU WKH &RRN &RXQW\ -DLO RU &HUPDN RQ WKLV EDVLV 6HH 5LFKDUGVRQ :/ DW DW WKH PRWLRQ WR GLVPLVV VWDJH ILQGLQJ WKH SODLQWLII¶V DOOHJDWLRQV WKDW ³'HIHQGDQW SHUFHLYHG KLP DV GLVDEOHG GXH WR KLV REHVLW\´ HQRXJK WR VWDWH D FODLP 7KDW EHLQJ VDLG WKH UHPDLQGHU RI 7KXUPDQ¶V QHZO\ UDLVHG WKHRU\²WKDW KH ZDV QRW KRXVHG DW WKH &RRN &RXQW\ -DLO RU &HUPDN SRWHQWLDOO\ RQ DFFRXQW RI SHUFHLYHG KHDUW GLVHDVH GLDEHWHV RU VOHHS DSQHD²ILQGV QR VLPLODU VXSSRUW LQ WKH &RPSODLQW DQG WKHUHIRUH LV QRW FRQVLGHUHG LQ FRQQHFWLRQ ZLWK WKLV DQDO\VLV $V WR WKH UHPDLQLQJ WZR HOHPHQWV RI 7KXUPDQ¶V $'$ FODLP GLVFULPLQDWLRQ RQ WKH EDVLV RI GLVDELOLW\ 7KXUPDQ DGHTXDWHO\ KDV SOHG WKHVH HOHPHQWV E\ DOOHJLQJ WKDW KH ZDV GHQLHG DGPLVVLRQ WR &HUPDN RU WKH &RRN &RXQW\ -DLO RQ DFFRXQW RI KLV DFWXDO RU SHUFHLYHG REHVLW\ DQG ODFN RI PRELOLW\ 2Q WKLV SRLQW 'HIHQGDQWV DUJXH WKDW 7KXUPDQ IDLOHG WR DOOHJH WKDW KH ZDV VKDFNOHG WR D EHG DW 0HUF\ EHFDXVH KH ZDV REHVH EXW WKLV DUJXPHQW PLVFRQVWUXHV 7KXUPDQ¶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³NHHSLQJ KLP VKDFNOHG WR D EHG WZHQW\ IRXU KRXUV SHU GD\ GHQ\LQJ KLP PRYHPHQW WR WKH SRLQW WKDW KLV KHDOWK ZDV WKUHDWHQHG ´ 'NW DW $JDLQ 7KXUPDQ ZDV RQO\ XQVKDFNOHG WR XVH WKH EDWKURRP RQ HLJKW RFFDVLRQV RYHU KLV GD\ FRQILQHPHQW GHVSLWH EHLQJ ZDWFKHG DW DOO WLPHV E\ WKH 2IILFHUV ³>:@KHQ WKH 6WDWH WDNHV D SHUVRQ LQWR LWV FXVWRG\ DQG KROGV KLP WKHUH DJDLQVW KLV ZLOO WKH &RQVWLWXWLRQ LPSRVHV XSRQ LW D FRUUHVSRQGLQJ GXW\ WR DVVXPH VRPH UHVSRQVLELOLW\ IRU KLV VDIHW\ DQG JHQHUDO ZHOO EHLQJ ´ 6HH 'H6KDQH\ Y :LQQHEDJR &RXQW\ 'HS¶W RI 6RF 6HUYV 8 6 <HW ³>D@V RQH PRYHV WKURXJK WKH FULPLQDO MXVWLFH V\VWHP WKH FRQVWLWXWLRQDO SURYLVLRQV JRYHUQLQJ RQH¶V WUHDWPHQW VKLIW ´ 6LPV Y 2OV]HZVNL :/ DW 1 ' ,OO 0D\ 6SHFLILFDOO\ WKH SURWHFWLRQV RI WKH )RXUWK $PHQGPHQW DSSO\ DW DUUHVW DQG XQWLO DQ DUUHVWHH KDV EHQHILWWHG IURP D MXGLFLDO GHWHUPLQDWLRQ RI SUREDEOH FDXVH WKHQ WKH )RXUWHHQWK $PHQGPHQW V GXH SURFHVV SULQFLSOHV DSSO\ WR SUHWULDO GHWDLQHHV DQG ILQDOO\ WKH (LJKWK $PHQGPHQW DSSOLHV IROORZLQJ FRQYLFWLRQ 2UWL] Y &LW\ RI &KLFDJR ) G ± WK &LU VHH DOVR /RSH] Y &LW\ RI &KLFDJR ) G WK &LU %HFDXVH 7KXUPDQ KDV DOOHJHG WKDW KH ZDV D SUHWULDO GHWDLQHH WKH )RXUWHHQWK $PHQGPHQW DSSOLHV 6HH 0LUDQGD Y &RXQW\ RI /DNH ) G WK &LU ³WKH FODLPV RI VWDWH GHWDLQHHV EHLQJ KHOG RQ SUREDEOH FDXVH DULVH XQGHU WKH )RXUWHHQWK $PHQGPHQW¶V 'XH 3URFHVV &ODXVH´ FLWLQJ &ROOLQV Y $O 6KDPL ) G WK &LU ,Q WKH SDVW WKH DSSOLFDWLRQ RI WKH )RXUWHHQWK $PHQGPHQW LQVWHDG RI WKH (LJKWK ZDV D GLVWLQFWLRQ ZLWKRXW D GLIIHUHQFH EHFDXVH WKH SUHYDLOLQJ GHOLEHUDWH LQGLIIHUHQFH DQDO\VLV IRU ERWK ZDV IXQFWLRQDOO\ LQGLVWLQJXLVKDEOH ,G DW ,W UHPDLQV WUXH WKDW IRU WKH DQDO\VLV RI HLWKHU D )RXUWHHQWK $PHQGPHQW FODLP RU DQ (LJKWK $PHQGPHQW FODLP 7KXUPDQ PXVW DOOHJH WKDW REMHFWLYHO\ WKH FRQGLWLRQV WR ZKLFK KH ZDV VXEMHFWHG GHQLHG KLP ³WKH PLQLPDO FLYLOL]HG PHDVXUH RI OLIH¶V QHFHVVLWLHV ´ FUHDWLQJ DQ H[FHVVLYH ULVN WR KLV KHDOWK RU VDIHW\ )DUPHU Y %UHQQDQ 8 6 +RZHYHU VKRUWO\ DIWHU WKH EULHILQJ RI WKH LQVWDQW PRWLRQ ZDV FRPSOHWHG WKH 6HYHQWK &LUFXLW LVVXHG 0LUDQGD Y &RXQW\ RI /DNH ZKLFK DOWHUHG WKH VHFRQG FRPSRQHQW RI WKLV DQDO\VLV 8QGHU 0LUDQGD DQG .LQJVOH\ Y +HQGULFNVRQ 6 &W D SUHWULDO GHWDLQHH VWDWHV D )RXUWHHQWK $PHQGPHQW FODLP E\ DOOHJLQJ WKDW WKH GHIHQGDQWV ³DFWHG SXUSRVHIXOO\ NQRZLQJO\ RU SHUKDSV HYHQ UHFNOHVVO\ ´ DQG WKH GHIHQGDQWV¶ FRQGXFW ZDV REMHFWLYHO\ XQUHDVRQDEOH 0LUDQGD ) G DW ±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³ZKHWKHU WKRVH FRQGLWLRQV DPRXQW WR SXQLVKPHQW RI WKH GHWDLQHH ´ ,G DW 7KLV LV EHFDXVH WKH 'XH 3URFHVV &ODXVH SURKLELWV DQ\ NLQG RI SXQLVKPHQW² QRW PHUHO\ FUXHO DQG XQXVXDO SXQLVKPHQW²RI D SUHWULDO GHWDLQHH $QWRQHOOL Y 6KHDKDQ ) G WK &LU FLWLQJ :ROILVK 8 6 DW Q .LQJVOH\ 6 &W DW ³SUHWULDO GHWDLQHHV XQOLNH FRQYLFWHG SULVRQHUV FDQQRW EH SXQLVKHG DW DOO PXFK OHVV PDOLFLRXVO\ DQG VDGLVWLFDOO\´ TXRWDWLRQV RPLWWHG 7R WKLV HQG WKH )RXUWHHQWK $PHQGPHQW SURWHFWV SUHWULDO GHWDLQHHV IURP WKH XVH RI ERGLO\ UHVWUDLQW XVHG WR SXQLVK WKH GHWDLQHH 0D\ Y 6KHDKDQ ) G WK &LU FLWLQJ <RXQJEHUJ Y 5RPHR 8 6 :ROILVK 8 6 DW ± 0XUSK\ Y :DONHU ) G ± WK &LU ³7KH XVH RI ERGLO\ UHVWUDLQWV FRQVWLWXWHV SXQLVKPHQW LQ WKH FRQVWLWXWLRQDO VHQVH LI WKHLU XVH LV QRW UDWLRQDOO\ UHODWHG WR D OHJLWLPDWH QRQ SXQLWLYH JRYHUQPHQW SXUSRVH RU WKH\ DSSHDU H[FHVVLYH LQ UHODWLRQ WR WKH SXUSRVH WKH\ DOOHJHGO\ VHUYH ´ 0D\ ) G DW FLWLQJ :ROILVK 8 6 DW DFFRUG $QWRQHOOL ) G DW 'HIHQGDQWV DUJXH WKDW 7KXUPDQ¶V VKDFNOLQJ ZDV UHDVRQDEOH DQG UDWLRQDOO\ UHODWHG WR WKH LQWHUHVW RI PDLQWDLQLQJ VHFXULW\ SDUWLFXODUO\ EHFDXVH WKH &RPSODLQW DOOHJHV WKDW 7KXUPDQ ZDV DUUHVWHG RQ JXQ DPPXQLWLRQ DQG GUXJ SRVVHVVLRQ FKDUJHV ZDV KHOG DW DQ XQVHFXUH KRVSLWDO DQG ZDV PRELOH 'NW DW 'HIHQGDQWV DUH FRUUHFW WKDW WKLV LV D OHJLWLPDWH QRQ SXQLWLYH JRYHUQPHQW SXUSRVH +DUW Y 6KHDKDQ ) G WK &LU ³>7@KH GHWHQWLRQ IDFLOLW\ KDV DQ LQWHUHVW LQ SUHYHQWLQJ HVFDSHV ´ 6KDFNOLQJ GHWDLQHHV ZKLOH WKH\ DUH RQ KRVSLWDO YLVLWV IXUWKHUV WKDW SXUSRVH 0D\ ) G DW ³&HUWDLQO\ VKDFNOLQJ DOO KRVSLWDO GHWDLQHHV UHGXFHV WKH ULVN RI D EUHDFK RI VHFXULW\ DQG WKXV IXUWKHUV D OHJLWLPDWH QRQ SXQLWLYH JRYHUQPHQW SXUSRVH ´ %XW HYHQ WKRXJK WKH VKDFNOLQJ ZDV UDWLRQDOO\ UHODWHG WR D QRQ SXQLWLYH SXUSRVH LW FRXOG VWLOO YLRODWH GXH SURFHVV LI WKH ZD\ LQ ZKLFK LW ZDV H[HFXWHG ZDV H[FHVVLYH LQ UHODWLRQ WR LWV HVFDSH SUHYHQWLRQ SXUSRVH 6HH H J /RYH Y 6KHDKDQ ) 6XSS G Q 1 ' ,OO ³-DLO RIILFLDOV FDQQRW OHJLWLPL]H H[FHVVLYH PHDVXUHV E\ PHUHO\ DVVHUWLQJ D QRQ SXQLWLYH SXUSRVH ´ FLWLQJ :ROILVK 8 6 DW Q ,Q 0D\ WKH 6HYHQWK &LUFXLW VDLG WKDW VKDFNOLQJ KRVSLWDO GHWDLQHHV ³DURXQG WKH FORFN GHVSLWH WKH FRQWLQXRXV SUHVHQFH RI D JXDUG´ ZDV ³SODLQO\ H[FHVVLYH LQ WKH DEVHQFH RI DQ\ LQGLFDWLRQ WKDW WKH GHWDLQHH SRVHV VRPH VRUW RI VHFXULW\ ULVN ´ ,G $OWKRXJK 'HIHQGDQWV DWWHPSW WR GLVWLQJXLVK 0D\ WKDW FDVH LV GLUHFWO\ DSSOLFDEOH DQG FRQWUROV KHUH 6HH 'NW DW DUJXLQJ WKDW 0D\ LV GLVWLQJXLVKDEOH EHFDXVH DUPHG JXDUGV PRQLWRUHG WKH SODLQWLII DW DOO WLPHV LQ WKDW FDVH ZKHUH 7KXUPDQ¶V DOOHJDWLRQV DUH QRW FOHDU RQ WKDW SRLQW KHUH WKH SODLQWLII KDG EHHQ DUUHVWHG RQO\ RQ D GUXJ SRVVHVVLRQ FKDUJH ZKHUH 7KXUPDQ KDG EHHQ DUUHVWHG RQ ZHDSRQ DQG GUXJ SRVVHVVLRQ FKDUJHV 0D\ ILUVW KDG EHHQ SURFHVVHG LQWR WKH &RRN &RXQW\ -DLO EHIRUH JRLQJ WR WKH KRVSLWDO PHDQLQJ KH ZDV DOUHDG\ NQRZQ WR MDLO VWDII DQG DW WKH KRVSLWDO KH ZDV VKDFNOHG WR WKH EHG E\ D ZULVW DQG D IRRW 7KXV WKH DOOHJDWLRQV FRQWDLQHG LQ 7KXUPDQ¶V &RPSODLQW OHDG WKH &RXUW WR D VLPLODU UHVXOW WR WKDW LQ 0D\ +H DOOHJHV WKDW KH LV D \HDU ROG PRUELGO\ REHVH PDQ ZLWK D OLPLWHG DELOLW\ WR ZDON EUHDWKH VWDQG OLIW DQG EHQG DPRQJ RWKHU WKLQJV 'NW DW ± ,Q DGGLWLRQ WKH 2IILFHUV ³VWRRG ZDWFK RYHU KLP DQG NHSW KLP GHWDLQHG ´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¶V VKDFNOLQJ SROLF\ XQGHU ZKLFK 0RRUH ZDV VKDFNOHG DW WZR KRVSLWDOV ZKLOH XQGHUJRLQJ PHGLFDO WUHDWPHQW ZDV H[FHVVLYH DQG WKHUHIRUH XQFRQVWLWXWLRQDO )ORUHV Y 6KHULII RI &RRN &RXQW\ :/ DW 1 ' ,OO 0DU ILQGLQJ WKDW D JHQXLQH LVVXH RI PDWHULDO IDFW H[LVWHG DV WR ZKHWKHU WKH UHVWUDLQW SROLF\ LV H[FHVVLYH $V DQRWKHU DVSHFW RI WKLV FODLP 7KXUPDQ DGHTXDWHO\ KDV DOOHJHG D )RXUWHHQWK $PHQGPHQW YLRODWLRQ ZLWK UHJDUG WR WKH RYHUDOO ODFN RI PRYHPHQW KH ZDV DOORZHG ZKLOH KRVSLWDOL]HG ³/DFN RI H[HUFLVH PD\ ULVH WR D FRQVWLWXWLRQDO YLRODWLRQ LQ H[WUHPH DQG SURORQJHG VLWXDWLRQV ZKHUH PRYHPHQW LV GHQLHG WR WKH SRLQW WKDW WKH LQPDWH¶V KHDOWK LV WKUHDWHQHG ´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¶V DOOHJDWLRQV DUH VXIILFLHQW WR DOOHJH D VXIILFLHQWO\ VHULRXV RU SXQLWLYH FRQGLWLRQ RI FRQILQHPHQW DQG ZLWKVWDQG D PRWLRQ WR GLVPLVV RQ WKLV FODLP E 2IILFHUV¶ 6WDWH RI 0LQG 8QGHU HLWKHU WKH VWDWH RI PLQG UHTXLUHPHQW IRU D )RXUWHHQWK $PHQGPHQW FODLP ZKLFK REMHFWLYH XQUHDVRQDEOHQHVV RU IRU DQ (LJKWK $PHQGPHQW FODLP ZKLFK LV GHOLEHUDWH LQGLIIHUHQFH 7KXUPDQ¶V &RPSODLQW DGHTXDWHO\ DOOHJHV WKLV HOHPHQW 7KH &RPSODLQW DOOHJHV WKDW WKH 2IILFHUV UHIXVHG WR XQVKDFNOH 7KXUPDQ IURP WKH KRVSLWDO EHG DQG DOORZ KLP WR JHW XS WR XVH WKH UHVWURRP )XUWKHU 7KXUPDQ DOOHJHV WKDW WKLV UHIXVDO ZDV GHVSLWH WKH XUJLQJ RI PHGLFDO VWDII WR DOORZ KLP WR JHW XS ZDON EULHIO\ DQG XVH WKH UHVWURRP DQG WKHLU ZDUQLQJV WKDW ³QRW DOORZLQJ 7KXUPDQ WR PRYH FUHDWHG VHULRXV KHDOWK ULVNV ´ 'NW DW ± $FFRUGLQJO\ WKH &RPSODLQW VXIILFLHQWO\ SOHDGV WKDW WKH 2IILFHUV NQHZ RU VKRXOG KDYH NQRZQ RI WKH VHULRXV ULVNV RI WKH FRQVWDQW VKDFNOLQJ DQG \HW WKH\ UHIXVHG WR FKDQJH FRXUVH JRLQJ VR IDU DV WR FRQVFLRXVO\ GLVUHJDUG WKLV ULVN )DUPHU 8 6 DW 7KH PRWLRQ WR GLVPLVV &RXQW ,, LV GHQLHG )LUVW $PHQGPHQW 9LRODWLRQ &RXQW ,,, 1H[W 7KXUPDQ FODLPV WKDW WKH 2IILFHUV YLRODWHG KLV )LUVW $PHQGPHQW ULJKWV E\ GHQ\LQJ KLP SKRQH FDOOV SHQ DQG SDSHU DQG YLVLWDWLRQ 'NW DW ± $V D UHVXOW KLV DELOLW\ WR FRPPXQLFDWH DQG YLVLW ZLWK ORYHG RQHV DQG IULHQGV ZDV UHVWULFWHG KH UHPDLQHG LQ FXVWRG\ DW WKH KRVSLWDO ORQJHU DQG KLV DELOLW\ WR SRVW ERQG DQG FRPPXQLFDWH ZLWK WKH SUHVLGLQJ MXGJH ZDV OLPLWHG ,G DW ,Q RWKHU ZRUGV KLV ULJKW WR DVVRFLDWLRQ ZDV YLRODWHG $OWKRXJK XQOLPLWHG FRPPXQLFDWLRQ EHWZHHQ GHWDLQHHV DQG WKHLU IDPLOLHV DQG IULHQGV LV QRW UHTXLUHG SULVRQHUV UHWDLQ D OLPLWHG FRQVWLWXWLRQDO ULJKW WR LQWLPDWH DVVRFLDWLRQ 7XUQHU Y 6DIOH\ 8 6 ± (DVWHUOLQJ Y 7KXUPHU ) G WK &LU SHU FXULDP $FFRUGLQJO\ SULVRQ RIILFLDOV PD\ YLRODWH WKH &RQVWLWXWLRQ E\ SHUPDQHQWO\ RU DUELWUDULO\ GHQ\LQJ DQ LQPDWH YLVLWV ZLWK IDPLO\ PHPEHUV LQ GLVUHJDUG RI WKH IDFWRUV GHVFULEHG LQ 7XUQHU DQG 2YHUWRQ Y %D]]HWWD 8 6 (DVWHUOLQJ ) G DW +RZHYHU DV 'HIHQGDQWV ULJKWO\ SRLQW RXW ³ZKHQ D SULVRQ UHJXODWLRQ LPSLQJHV RQ LQPDWHV¶ FRQVWLWXWLRQDO ULJKWV WKH UHJXODWLRQ LV YDOLG LI LW LV UHDVRQDEO\ UHODWHG WR OHJLWLPDWH SHQRORJLFDO LQWHUHVWV ´ 7XUQHU 8 6 DW VHH DOVR /LQGHOO Y )UDQN ) G WK &LU ³:KHQ D SULVRQ UHJXODWLRQ UHVWULFWV D SULVRQHU¶V )LUVW $PHQGPHQW ULJKW WR IUHH VSHHFK LW LV YDOLG RQO\ LI LW LV UHDVRQDEO\ UHODWHG WR OHJLWLPDWH SHQRORJLFDO LQWHUHVWV ´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± VHH DOVR 6KDZ Y 0XUSK\ 8 6 'HIHQGDQWV DUJXH WKDW 7KXUPDQ KDV IDLOHG WR SOHDG WKDW DOO RI WKH 7XUQHU IDFWRUV ZHLJK LQ KLV IDYRU UHJDUGLQJ WKH UHVWULFWLRQV KH H[SHULHQFHG 6HH 'NW DW ,Q RWKHU ZRUGV WKH\ DUJXH WKDW 7KXUPDQ IDLOHG WR SOHDG WKDW WKH UHVWULFWLRQV SODFHG RQ KLV FRPPXQLFDWLRQV ZHUH QRW UHDVRQDEO\ UHODWHG WR OHJLWLPDWH SHQRORJLFDO LQWHUHVWV VHHLQJ WKDW KH ZDV GHWDLQHG DW D ORFDO KRVSLWDO DV RSSRVHG WR WKH &RRN &RXQW\ -DLO D IDFLOLW\ GHVLJQHG ZLWK PXOWLSOH OD\HUV RI VHFXULW\ ,G DW ± %XW DSSOLFDWLRQ RI WKH 7XUQHU DQDO\VLV LV RIWHQ SUHPDWXUH DW WKH SOHDGLQJ VWDJH /LQGHOO ) G DW ± 6WLOO GLVPLVVDO DW WKLV VWDJH FDQ EH SURSHU ZKHUH WKH SHQRORJLFDO UHDVRQV IRU WKH UXOH DUH REYLRXV DQG ZHOO HVWDEOLVKHG :LOOLDPV Y :LVFRQVLQ ) G WK &LU VHH H J 3HJXHV Y .LEE\ :/ DW & ' ,OO 'HF SODLQWLII IDLOHG WR VWDWH D FODLP IRU WKH GHQLDO RI D SHUVRQDOO\ RZQHG FRPSXWHU ZKHUH GHIHQGDQWV VXEPLWWHG D ³SURJUDP GLUHFWRU¶V PHPRUDQGXP´ WKDW DUWLFXODWHG WKH FRQQHFWLRQ EHWZHHQ WKH FRPSXWHU EDQ DQG WKH VHFXULW\ FRQFHUQV 7KH DOOHJDWLRQV DQG DUJXPHQWV LQ WKLV FDVH DUH QRW DPHQDEOH WR GLVPLVVDO RQ VXFK JURXQGV +HUH 7KXUPDQ VXIILFLHQWO\ KDV DOOHJHG WKDW KH ZDV GHQLHG DOO PHDQV RI DVVRFLDWLRQ DQG WKDW VXFK UHVWULFWLRQV ³ZHUH QRW UHODWHG WR D OHJLWLPDWH DQG QRQ SXQLWLYH JRYHUQPHQWDO JRDO UDWKHU WKH\ ZHUH LQWHQGHG WR DQG GLG SXQLVK 7KXUPDQ ´ 'NW DW ,Q VR KROGLQJ WKH &RXUW GRHV QRW EUXVK DVLGH 'HIHQGDQWV¶ DUJXPHQW WKDW VXFK UHVWULFWLRQV ZHUH QHFHVVDU\ WR VHFXUH 7KXUPDQ DW D KRVSLWDO ZLWKRXW HQGDQJHULQJ KRVSLWDO VWDII DQG RWKHU SDWLHQWV 'NW DW %XW WKLV DUJXPHQW IDLOV WR OLQN VDIHW\ WR WKH RXWULJKW GHQLDO RI SKRQH FDOOV SHQ DQG SDSHU DQG YLVLWV DOOHJHG E\ 7KXUPDQ GXULQJ KLV GD\V DW WKH KRVSLWDO $OWKRXJK LW LV SRVVLEOH WR HQYLVLRQ D VHFXULW\ MXVWLILFDWLRQ WKDW ZRXOG VXSSRUW WKH 'HIHQGDQWV¶ DFWLRQV ³WKLV GHWHUPLQDWLRQ FDQQRW EH PDGH ZLWKRXW NQRZLQJ WKH UHDVRQV EHKLQG´ WKH GHQLDO /LQGHOO ) G DW )RU WKHVH UHDVRQV 'HIHQGDQWV¶ PRWLRQ WR GLVPLVV RQ &RXQW ,,, LV GHQLHG 'HQLDO RI $FFHVV WR &RXUWV DQG &RXQVHO &RXQW ,9 7KXUPDQ DOVR FODLPV WKDW WKH 2IILFHUV GHQLHG KLP PHDQLQJIXO DFFHVV WR WKH FRXUWV DQG FRXQVHO E\ IDLOLQJ WR WDNH KLP WR WHQ FRXUW GDWHV DQG SUHYHQWLQJ KLP IURP FRPPXQLFDWLQJ ZLWK KLV DWWRUQH\V 'NW DW ± ± 7KLV UHVXOWHG LQ WKH GHOD\ RI KLV FDVH DQG KLV SURORQJHG GHWHQWLRQ LQ WKH KRVSLWDO ,G DW ³7KH &RQVWLWXWLRQ SURWHFWV D SULVRQHU¶V ULJKW RI DFFHVV WR WKH FRXUWV VWDWH DFWRUV PXVW UHVSHFW WKDW ULJKW E\ QRW LPSHGLQJ SULVRQHUV¶ HIIRUWV WR SXUVXH OHJDO FODLPV ´ 2UWL] Y 'RZQH\ ) G WK &LU VHH DOVR *XDMDUGR 3DOPD Y 0DUWLQVRQ ) G WK &LU ³7KH )RXUWHHQWK $PHQGPHQW JXDUDQWHHV PHDQLQJIXO DFFHVV WR FRXUWV >DQG@ WKH RSSRUWXQLW\ WR FRPPXQLFDWH SULYDWHO\ ZLWK DQ DWWRUQH\ LV DQ LPSRUWDQW SDUW RI WKDW PHDQLQJIXO DFFHVV ´ TXRWLQJ 'UHKHU Y 6LHODII ) G WK &LU ³7KDW ULJKW LV YLRODWHG ZKHQ D SULVRQHU LV GHSULYHG RI VXFK DFFHVV DQG VXIIHUV DFWXDO LQMXU\ DV D UHVXOW ´ 2UWL] ) G DW 7KXUPDQ¶V DOOHJDWLRQV LPSOLFDWH ³RIILFLDO DFWV FODLPHG WR KDYH GHQLHG DFFHVV >WKDW@ PD\ DOOHJHGO\ KDYH FDXVHG WKH ORVV RU LQDGHTXDWH VHWWOHPHQW RI D PHULWRULRXV FDVH WKH ORVV RI DQ RSSRUWXQLW\ WR VXH RU WKH ORVV RI DQ RSSRUWXQLW\ WR VHHN VRPH SDUWLFXODU RUGHU RI UHOLHI ´ &KULVWRSKHU Y +DUEXU\ 8 6 LQWHUQDO FLWDWLRQV RPLWWHG 7KLV SDUWLFXODU FDWHJRU\ RI DFFHVV FODLPV GRHV QRW ³ORRN IRUZDUG WR D FODVV RI IXWXUH OLWLJDWLRQ EXW EDFNZDUG WR D WLPH ZKHQ VSHFLILF OLWLJDWLRQ HQGHG SRRUO\ RU FRXOG QRW KDYH FRPPHQFHG RU FRXOG KDYH SURGXFHG D UHPHG\ VXEVHTXHQWO\ XQREWDLQDEOH ´ ,G %HFDXVH VXFK FODLPV DUH EURXJKW WR VHFXUH UHOLHI ³XQREWDLQDEOH LQ RWKHU VXLWV WKH UHPHG\ VRXJKW PXVW LWVHOI EH LGHQWLILHG WR KHGJH DJDLQVW WKH ULVN WKDW DQ DFFHVV FODLP EH WULHG DOO WKH ZD\ WKURXJK RQO\ WR ILQG WKDW WKH FRXUW FDQ DZDUG QR UHPHG\ WKDW WKH SODLQWLII FRXOG QRW KDYH EHHQ DZDUGHG RQ D SUHVHQWO\ H[LVWLQJ FODLP ´ ,G DW $OWKRXJK IDFW SOHDGLQJ LV XQQHFHVVDU\ LQ RUGHU WR VWDWH D FRORUDEOH FODLP ³D SULVRQHU PXVW VKRZ DFWXDO VXEVWDQWLDO SUHMXGLFH WR VSHFLILF OLWLJDWLRQ ´ *HQWU\ Y 'XFNZRUWK ) G WK &LU VHH DOVR 0DUVKDOO Y .QLJKW ) G WK &LU 3UDWW Y 7DUU ) G ± WK &LU D SULVRQHU¶V FRPSODLQW PXVW VSHOO RXW WKH FRQQHFWLRQ EHWZHHQ WKH DOOHJHG GHQLDO RI DFFHVV WR OHJDO PDWHULDOV DQG DQ LQDELOLW\ WR SXUVXH D OHJLWLPDWH FKDOOHQJH WR D FRQYLFWLRQ VHQWHQFH RU SULVRQ FRQGLWLRQV ,Q RWKHU ZRUGV WR DOOHJH D YLRODWLRQ RI WKH ULJKW WR DFFHVV WR WKH FRXUWV 7KXUPDQ PXVW LGHQWLI\ WKH XQGHUO\LQJ FODLP WKDW ZDV ORVW GHVFULEH WKH RIILFLDO DFWV IUXVWUDWLQJ WKH OLWLJDWLRQ DQG LGHQWLI\ UHPHG\ WKDW PD\ EH DZDUGHG DV UHFRPSHQVH EXW QRW RWKHUZLVH DYDLODEOH LQ VRPH VXLW WKDW PD\ \HW EH EURXJKW &KULVWRSKHU 8 6 DW ± $OWKRXJK 7KXUPDQ KDV VXIILFLHQWO\ DOOHJHG WKDW WKH 2IILFHUV FDXVHG GHOD\ LQ KLV FULPLQDO SURFHHGLQJV E\ IDLOLQJ WR EULQJ KLP WR WHQ VFKHGXOHG FRXUW DSSHDUDQFHV 'HIHQGDQWV DUJXH WKDW 7KXUPDQ KDV IDLOHG WR SURSHUO\ DOOHJH WKH RWKHU WZR HOHPHQWV LQ KLV EDFNZDUG ORRNLQJ GHQLDO RI DFFHVV FODLP D SRRU HQGLQJ RU UHPHG\ QRW RWKHUZLVH DYDLODEOH 'NW DW 'NW DW 2Q WKLV FODLP 7KXUPDQ UHOLHV RQ 0D\ Y 6KHDKDQ :/ 1 ' ,OO -XO\ DII¶G ) G WK &LU IRU VXSSRUW 'NW DW 6LPLODU WR WKH SODLQWLII LQ 0D\ DV D UHVXOW RI WKH DOOHJHG GHQLDOV 7KXUPDQ¶V FDVH ZDV GHOD\HG KH UHPDLQHG LQ FXVWRG\ IRU ORQJHU DQG KLV DELOLW\ WR SRVW ERQG ZDV KLQGHUHG 'NW DW +RZHYHU XQOLNH WKH SODLQWLII LQ 0D\ 7KXUPDQ IDLOV WR VWDWH D FODLP IRU GHQLDO RI DFFHVV WR WKH FRXUWV )LUVW 7KXUPDQ KDV QRW RIIHUHG DQ\ DOOHJDWLRQV LQGLFDWLQJ WKDW KH ORVW D FODLP RU ZDV RWKHUZLVH SUHMXGLFHG RQ DFFRXQW RI WKH GHOD\V ,Q IDFW WKH &RPSODLQW LQGLFDWHV WKDW KH ZDV VXFFHVVIXO LQ KLV GHIHQVH WR WKH FKDUJHV 6R QRWKLQJ HQGHG ³SRRUO\´ IRU 7KXUPDQ 6HFRQG 0D\ ZDV GHFLGHG EHIRUH &KULVWRSKHU ZKLFK DGGHG D WKLUG SURQJ RI WR DQDO\VLV RI WKHVH W\SHV RI FODLPV ZKHWKHU WKHUH LV D UHPHG\ WKDW PD\ EH DZDUGHG DV UHFRPSHQVH EXW QRW RWKHUZLVH DYDLODEOH &KULVWRSKHU 8 6 DW +HUH 7KXUPDQ KDV UHTXHVWHG WKH VDPH GDPDJHV²FRPSHQVDWRU\ SXQLWLYH IHHV DQG FRVWV²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± ,Q &ROHPDQ Y )UDQW] WKH 6HYHQWK &LUFXLW IRXQG WKDW WKH SODLQWLII¶V GD\ GHWHQWLRQ ZLWKRXW DQ DSSHDUDQFH EHIRUH D MXGJH GHSULYHG WKH SODLQWLII RI OLEHUW\ ZLWKRXW GXH SURFHVV RI ODZ ) G WK &LU $ GHQLDO RI GXH SURFHVV RFFXUV ZKHQ VWDWH DFWLRQ ³VKRFNV WKH FRQVFLRXV´ RI WKH FRXUW DQG LV VR ³RIIHQVLYH WR WKH FRQFHSW RI RUGHUHG OLEHUW\ ´ 5RFKLQ Y &DOLIRUQLD 8 6 3DONR Y &RQQHFWLFXW 8 6 ± 7KH 6HYHQWK &LUFXLW KDV DOVR IRXQG WKDW KROGLQJ WKH SODLQWLII IRU GD\V EHIRUH EHLQJ FKDUJHG EHIRUH D MXGLFLDO RIILFHU VWDWHG D FODLP XQGHU 6LYDUG Y 3XODVNL &W\ ) G WK &LU DQDO\]LQJ FODLP XQGHU WKH )RXUWK $PHQGPHQW VHH DOVR &RXQW\ RI 5LYHUVLGH Y 0F/DXJKOLQ 8 6 VWDWLQJ WKDW ³>Z@KHUH DQ DUUHVWHG LQGLYLGXDO GRHV QRW UHFHLYH D SUREDEOH FDXVH GHWHUPLQDWLRQ ZLWKLQ KRXUV WKH FDOFXOXV FKDQJHV ,Q VXFK D FDVH WKH DUUHVWHG LQGLYLGXDO GRHV QRW EHDU WKH EXUGHQ RI SURYLQJ DQ XQUHDVRQDEOH GHOD\ 5DWKHU WKH EXUGHQ VKLIWV WR WKH JRYHUQPHQW WR GHPRQVWUDWH WKH H[LVWHQFH RI D ERQD ILGH HPHUJHQF\ RU RWKHU H[WUDRUGLQDU\ FLUFXPVWDQFH ´ ,I DQ GD\ GHWHQWLRQ ZLWKRXW DSSHDUDQFH EHIRUH D MXGJH FDQ ³VKRFN WKH FRQVFLRXV´ DQG YLRODWH WKH ULJKW WR GXH SURFHVV RI ODZ FHUWDLQO\ EHLQJ GHQLHG DQ DUUDLJQPHQW IRU RYHU WZR PRQWKV LV VXIILFLHQW WR VWDWH D FODLP SDUWLFXODUO\ ZKHUH 7KXUPDQ DOVR DOOHJHV WKDW KH ZDV DUUHVWHG ³ZLWKRXW SUREDEOH FDXVH ´ 6HH &ROHPDQ ) G DW 7KXUPDQ KDG D FRQVWLWXWLRQDO ULJKW WR SURPSW DSSHDUDQFH LQ IURQW RI D MXGJH DIWHU KH ZDV GHWDLQHG DQG KLV WZR PRQWK SUHWULDO GHWHQWLRQ ZLWKRXW DQ DUUDLJQPHQW LV HQRXJK WR DOOHJH FRQGXFW WKDW ³VKRFNV WKH FRQVFLRXV ´ 'HIHQGDQWV DUJXH RWKHUZLVH ORRNLQJ WR ,OOLQRLV FDVHODZ KROGLQJ WKDW D GHIHQGDQW¶V ULJKW WR EH SUHVHQW DW DQ DUUDLJQPHQW LV QRW DEVROXWH 6HH 'NW DW FLWLQJ 3HRSOH Y /LQGVH\ ,OO G %XW WKH LVVXH UDLVHG E\ 7KXUPDQ¶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¶V 'HS¶W ) G WK &LU FLWLQJ 0RQHOO 8 6 DW VHH DOVR *OLVVRQ Y ,QG 'HS¶W RI &RUU ) G WK &LU VWDWLQJ WKDW ³>W@KH FULWLFDO TXHVWLRQ XQGHU 0RQHOO LV ZKHWKHU D PXQLFLSDO >@ SROLF\ RU FXVWRP JDYH ULVH WR WKH KDUP WKDW LV FDXVHG LW RU LI LQVWHDG WKH KDUP UHVXOWHG IURP WKH DFWV RI WKH HQWLW\¶V DJHQWV ´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¶V FODLPV &RXQWV ,, ,,, ,9 DQG 9 UHVSHFWLYHO\ ,G :LWKRXW DGGUHVVLQJ WKH DOOHJHG SUDFWLFHV LQGLYLGXDOO\ 'HIHQGDQWV DUJXH WKDW 7KXUPDQ¶V 0RQHOO FODLP LV GHILFLHQW EHFDXVH WKH &RPSODLQW VROHO\ UHYROYHV DURXQG 7KXUPDQ¶V SHUVRQDO FLUFXPVWDQFHV IURP 0DUFK WR 0D\ 'NW DW $OWKRXJK D SODLQWLII PD\ UHO\ RQ KLV RZQ H[SHULHQFH WR VWDWH D 0RQHOO FODLP VHH :KLWH Y &LW\ RI &KLFDJR ) G WK &LU 7KXUPDQ¶V DOOHJDWLRQV LQ SDUDJUDSK ² FRQVLGHUHG DORQJ ZLWK KLV &RPSODLQW DV D ZKROH²ODFN VXIILFLHQW IDFWXDO VXSSRUW WR DOORZ WKH &RXUW WR GUDZ WKH UHDVRQDEOH LQIHUHQFH WKDW DQ\ RI WKH DOOHJHG GHILFLHQFLHV RU IDLOXUHV FRQVWLWXWHG D FXVWRP RU SUDFWLFH VR ZLGHVSUHDG IRU ZKLFK 6KHULII 'DUW RU WKH &RXQW\ LV OLDEOH 0F&DXOH\ ) G DW VHH *LOO Y &LW\ RI 0LOZDXNHH ) G WK &LU KROGLQJ WKDW WKH VSHFLILF DFWLRQV RI JRYHUQPHQW HPSOR\HHV LQ WKH SODLQWLII¶V FDVH DORQH ZLWKRXW PRUH GLG QRW FUHDWH WKH UHDVRQDEOH LQIHUHQFH WKDW D ZLGHVSUHDG SUDFWLFH H[LVWHG VHH H J *DUFLD Y &LW\ RI &KLFDJR :/ DW 1 ' ,OO -XO\ GLVPLVVLQJ 0RQHOO DOOHJDWLRQV ZKHUH ³*DUFLD KDV QRW SURYLGHG DQ\ IDFWV WR VXSSRUW KLV FODLP WKDW WKH &LW\ PDLQWDLQV D SROLF\ RU SUDFWLFH RI IDLOLQJ WR VXSHUYLVH RU FRQWURO LWV RIILFHUV DQG WKDW VXFK D SROLF\ RU SUDFWLFH FDXVHG KLV LQMXULHV ´ $OWKRXJK 7KXUPDQ DOOHJHV WKDW WKH UHSHDWHG GHQLDOV LQ KLV FDVH RI PRYHPHQW DVVRFLDWLRQ DQG DFFHVV WR FRXUW GHPRQVWUDWH D SDWWHUQ RI EHKDYLRU WKDW FDQ VXSSRUW D ZLGHVSUHDG SUDFWLFH FODLP 'NW DW WKH &RXUW ILQGV WKDW WKHVH DOOHJDWLRQV DUH WRR YDJXH DQG 7KXUPDQ¶V ³FLUFXPVWDQFHV DUH VWLOO WRR XQLTXH WR HYLQFH WKH H[LVWHQFH RI D SROLF\ ´ *RQ]DOH] Y 'DUW :/ DW 1 ' ,OO $XJ 'HVSLWH WKH IDFW WKDW WKH &RPSODLQW UHIHUHQFHV DQ DJUHHPHQW ³HQWHUHG LQWR DV D UHVXOW RI 0D\ Y 0LFKDHO ) 6KHDKDQ 1R & ´ 'NW DW VHH DOVR 'NW DW LW GRHV QRW HYHQ DWWHPSW WR H[SODLQ KRZ ZKDWHYHU DJUHHPHQW WR ZKLFK LW UHIHUV LV DSSOLFDEOH WR WKH VLWXDWLRQ DW KDQG (YHQ LI 7KXUPDQ KDG SURYLGHG WKH UHIHUHQFHG DJUHHPHQW RU VSHFLILFDOO\ LGHQWLILHG WKH GRFXPHQW ³>L@W LV QRW WKH &RXUW¶V GXW\ WR GLJ WKURXJK WKDW GRFXPHQW LQ VHDUFK RI LWHPV WKDW PD\ VXSSRUW >7KXUPDQ¶V@ YDULRXV 0RQHOO DOOHJDWLRQV ´ 6FRWW 3LWWV Y &RXQW\ RI &RRN :/ DW 1 ' ,OO -XO\ )XUWKHU ³D FRPSODLQW PXVW DOOHJH IDFWV DQG >D@ FXUVRU\ UHIHUHQFH WR D µZLGHVSUHDG SUDFWLFH¶ DV DOOHJHG LQ DQRWKHU FDVH GRHV QRW UDLVH WKH SODXVLELOLW\ RI D 0RQHOO FODLP DJDLQVW WKH 6KHULII¶V 2IILFH DERYH D VSHFXODWLYH OHYHO LQ WKLV FDVH ´ -RKQVRQ Y 6KHULII RI &RRN &RXQW\ :/ DW 1 ' ,OO $SU %HFDXVH 7KXUPDQ¶V DOOHJDWLRQV DUH YDJXHO\ ZRUGHG FRQFOXVRU\ DQG ILQG WKHLU RQO\ VXSSRUW LQ 7KXUPDQ¶V RZQ H[SHULHQFHV WKH &RPSODLQW IDLOV WR SODXVLEO\ DOOHJH WKDW 7KXUPDQ¶V YDULRXV LQMXULHV ZHUH WKH UHVXOW RI WKH &RXQW\¶V YDULRXV ZLGHVSUHDG SROLFLHV 7KXV KH KDV IDLOHG WR VXIILFLHQWO\ DOOHJH D 0RQHOO FODLP 6HH *LOO ) G DW &RXQW 9,, LV GLVPLVVHG ' ,QGHPQLILFDWLRQ &RXQW 9, /DVW 3ODLQWLII DVVHUWV DQ LQGHPQLILFDWLRQ FODLP XQGHU WKH ,OOLQRLV 7RUW ,PPXQLW\ $FW ,/&6 ZKLFK GLUHFWV PXQLFLSDOLWLHV WR SD\ FRPSHQVDWRU\ GDPDJH MXGJPHQWV IRU WRUWV FRPPLWWHG E\ WKHLU HPSOR\HHV ZKLOH DFWLQJ ZLWKLQ WKH VFRSH RI WKHLU HPSOR\PHQW 'NW DW ± <DQJ Y &LW\ RI &KLFDJR ) G WK &LU VHH DOVR ,Y\ Y 3RZHUV :/ DW ± 1 ' ,OO -DQ VWDWLQJ WKDW ³>L@QGHPQLILFDWLRQ LV DSSOLFDEOH LI WKH 'HIHQGDQW 2IILFHU ZKLOH DFWLQJ ZLWKLQ WKH VFRSH RI HPSOR\PHQW >LV@ OLDEOH IRU DQ\´ RI WKH 6HFWLRQ FODLPV DVVHUWHG ´ 7KH &RXQW\ PRYHV WR GLVPLVV WKH LQGHPQLILFDWLRQ FODLP RQ WKH EDVLV WKDW WKH RWKHU FODLPV DUH VXEMHFW WR GLVPLVVDO %HFDXVH FHUWDLQ RI 7KXUPDQ¶V RWKHU FODLPV VXUYLYH GLVPLVVDO WKH LQGHPQLILFDWLRQ FODLP ZLOO QRW EH GLVPLVVHG RQ WKLV EDVLV &21&/86,21 )RU WKH UHDVRQV VHW IRUWK DERYH WKH &RXUW JUDQWV LQ SDUW DQG GHQLHV LQ SDUW WKH 0RWLRQ WR 'LVPLVV 'NW 6SHFLILFDOO\ WKH 0RWLRQ LV JUDQWHG ZLWK UHJDUG WR &RXQWV ,9 DQG 9,, WKH 0RWLRQ LV GHQLHG LQ DOO RWKHU UHVSHFWV 'DWH 2FWREHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB +RQ 9LUJLQLD 0 .HQGDOO 8QLWHG 6WDWHV 'LVWULFW -XGJH