           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 DS




81,7('67$7(6&28572)$33($/6
                  )257+(6,;7+&,5&8,7
                    BBBBBBBBBBBBBBBBB


 &$5/26 ' *2$'DQG                ;
 52%(57 s :8&+,&+                 
          3ODLQWLIIV$SSHOODQWV 
                                      1R
                                    
            Y                       !
                                    
                                    
 %(77< 0,7&+(// s$&48,             
 9,6,17,1(DQG0 $               
 *,/%(57                           
         'HIHQGDQWV$SSHOOHHV 
                                    
                                   1
       $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW
      IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG
       1Rn$QQ$OGULFK'LVWULFWsXGJH
            $UJXHGDQG6XEPLWWHGsDQXDU\
                'HFLGHGDQG)LOHGsXO\
%HIRUH%2**6DQG0225(&LUFXLWsXGJHV5866(//
                   'LVWULFWsXGJH




    
     7KH +RQRUDEOH 7KRPDV % 5XVVHOO 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU
WKH :HVWHUQ 'LVWULFW RI .HQWXFN\ VLWWLQJ E\ GHVLJQDWLRQ



                                   
     *RDGHWDOY0LWFKHOOHWDO              1R

                     BBBBBBBBBBBBBBBBB
                          &2816(/
$5*8('sDFN:'HFNHU2)),&(2)7+($77251(<
*(1(5$/&ROXPEXV2KLRIRU$SSHOOHHV21%5,()
$ODQ 6 %HONLQ $/$1 %(/.,1 &203$1< &OHYHODQG
2KLR IRU $SSHOODQWV  sDFN : 'HFNHU 2)),&( 2) 7+(
$77251(<*(1(5$/&ROXPEXV2KLRIRU$SSHOOHH
                     BBBBBBBBBBBBBBBBB
                         23,1,21
                     BBBBBBBBBBBBBBBBB
  .$5(1 1(/621 0225( &LUFXLW sXGJH  3ODLQWLIIV
$SSHOODQWV&DUORV'*RDGDQG5REHUWs:XFKLFKDSSHDOWKH
GLVWULFW FRXUWjV JUDQW RI 'HIHQGDQWV$SSHOOHHVj PRWLRQ WR
GLVPLVVSXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUHE
*RDG DQG :XFKLFK IRUPHU &RUUHFWLRQV 2IILFHUV DW WKH
0DQVILHOG&RUUHFWLRQDO,QVWLWXWLRQILOHGDFRPSODLQWDJDLQVW
'HIHQGDQWV$SSHOOHHV RIILFHUV RI WKH ,QVWLWXWLRQ DOOHJLQJ
UHWDOLDWRU\ DFWLRQ EDVHG RQ WKH H[HUFLVH RI *RDG DQG
:XFKLFKjV)LUVW$PHQGPHQWULJKWWRIUHHVSHHFKLQYLRODWLRQ
RI  86&    )RU WKH IROORZLQJ UHDVRQV ZH
5(9(56( WKH GLVWULFW FRXUWjV JUDQW RI 'HIHQGDQWV
$SSHOOHHVj PRWLRQ WR GLVPLVV DQG ZH 5(0$1' IRU
SURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ
                     ,%$&.*5281'
  3ODLQWLIIV$SSHOODQWV &DUORV ' *RDG DQG 5REHUW s
:XFKLFKmSODLQWLIIVlZHUHHPSOR\HGDV&RUUHFWLRQV2IILFHUV
LQ WKH PHQWDO KHDOWK XQLW DW WKH 0DQVILHOG &RUUHFWLRQDO
,QVWLWXWLRQm0$1&,lLQ0DQVILHOG2KLR2Q0DUFK
 WKH\ ILOHG D FRPSODLQW LQ WKH 8QLWHG 6WDWHV 'LVWULFW
&RXUWIRUWKH1RUWKHUQ'LVWULFWRI2KLRSXUVXDQWWR86&
DOOHJLQJWKDW%HWW\0LWFKHOOWKH:DUGHQDW0$1&,
sDFTXL9LVLQWLQHD/DERU5HODWLRQV2IILFHUDW0$1&,DQG
0 $ *LOEHUW DQ 2KLR 6WDWH +LJKZD\ 3DWURO 7URRSHU
DVVLJQHG WR 0$1&, mGHIHQGDQWVl KDG UHWDOLDWHG DJDLQVW
1R                   *RDGHWDOY0LWFKHOOHWDO        

WKHPLQYLRODWLRQRIWKHLU)LUVWDQG)RXUWHHQWK$PHQGPHQW
ULJKWV2Q$SULOWKHGHIHQGDQWVILOHGDQDQVZHUWR
WKH FRPSODLQW UDLVLQJ WKH DIILUPDWLYH GHIHQVH RI TXDOLILHG
LPPXQLW\DQGRQ0D\WKHGHIHQGDQWVPRYHGIRU
MXGJPHQWRQWKHSOHDGLQJVSXUVXDQWWR)HGHUDO5XOHRI&LYLO
3URFHGXUHF6WDWLQJWKDWm>E@HFDXVHWKHLUFRPSODLQWIDLOV
WRVSHFLI\WKHFRQWHQWFRQWH[WDQGWLPLQJRIWKHLUDOOHJHGO\
SURWHFWHG DFWLYLWLHV WKLV &RXUW FDQQRW DVVHVV ZKHWKHU WKH
SODLQWLIIVZRXOGEHDEOHWRRYHUFRPHWKHGHIHQVHRITXDOLILHG
LPPXQLW\l WKH GLVWULFW FRXUW RQ $SULO   GHQLHG WKH
GHIHQGDQWVj PRWLRQ IRU MXGJPHQW RQ WKH SOHDGLQJV DQG
RUGHUHG WKH SODLQWLIIV WR ILOH D PRUH VSHFLILF DPHQGHG
FRPSODLQWsRLQW$SSHQGL[ms$lDW0HPDQG2UGHU
  2Q $SULO   WKH SODLQWLIIV ILOHG DQ DPHQGHG
FRPSODLQW7KHDPHQGHGFRPSODLQWOLVWHGHLJKWLQVWDQFHVRI
VSHHFK E\ WKH SODLQWLIIV DOOHJHGO\ SURWHFWHG E\ WKH )LUVW
$PHQGPHQWKRZHYHURQDSSHDOWKHSODLQWLIIVFRQFHGHWKDW
VL[RIWKHHLJKWLQVWDQFHVRIVSHHFKDUHQRWFRQVWLWXWLRQDOO\
SURWHFWHG$SSHOODQWVj%UDW7KHWZRUHPDLQLQJLQVWDQFHV
RI VSHHFK ZHUH GHVFULEHG LQ WKH DPHQGHG FRPSODLQW DV
IROORZV
  E     2QD\HDUO\EDVLVPRQLWRUVDSSHDUHGDWWKH0$1&,
         PHQWDO KHDOWK XQLW WR DVVHVV FRPSOLDQFH ZLWK D
         FRQVHQWGHFUHH,QERWKDQG*RDGDQG
         :XFKLFK WROGWKHVHPRQLWRUVWKDW0$1&,PHQWDO
         KHDOWKRIILFLDOVZHUHQRWFRQGXFWLQJJURXSVHVVLRQV
         ZLWKLQPDWHVDVUHTXLUHGLQWKHFRQVHQWGHFUHHEXW
         WKDW WKHVH 0$1&, PHQWDO KHDOWK RIILFLDOV ZHUH


    
       1907 OLVWLQJ D QXPEHU RI mDGYHUVH DFWLRQVl WDNHQ DJDLQVW WKH
SODLQWLIIV E\ WKH GHIHQGDQWV WKH FRPSODLQW VWDWHG RQO\ WKDW m0LWFKHOO
9LVLQWLQH DQG *LOEHUW HQJDJHG LQ WKH DIRUHGHVFULEHG FRQGXFW WRZDUG *RDG
DQG :XFKLFK LQ UHWDOLDWLRQ DJDLQVW DFWLRQV E\ *RDG DQG :XFKLFK LQ WKH
DUHDV RI RUJDQL]HG ODERU DQG H[SUHVVLRQ     0RUH VSHFLILFDOO\ >VXFK
DFWLRQ@ UHODWHG WR ZRUNLQJ FRQGLWLRQV RI DQG WUHDWPHQW RI 0$1&,
&RUUHFWLRQV 2IILFHUV DQG UHODWLRQVKLSV EHWZHHQ HPSOR\HHV RI YDULRXV
DGPLQLVWUDWLYH GHSDUWPHQWV DW 0$1&,l sRLQW $SSHQGL[ ms$l DW 
&RPSO
        *RDGHWDOY0LWFKHOOHWDO            1R    1R                *RDGHWDOY0LWFKHOOHWDO    

          SUHSDULQJIDOVHDQGLQDFFXUDWHGRFXPHQWVWRUHIOHFW       VWDQGDUG UHOLHV RQ OLEHUDO GLVFRYHU\ UXOHV DQG VXPPDU\
          IXOOFRPSOLDQFHZLWKWKHFRQVHQWGHFUHH                  MXGJPHQWPRWLRQVWRGHILQHGLVSXWHGIDFWVDQGLVVXHVDQGWR
                                                              GLVSRVHRIXQPHULWRULRXVFODLPVl:HDOVRHPSKDVL]HWKDW
                                                                    WKHmVSHFLILFQRQFRQFOXVRU\DOOHJDWLRQVRIIDFWlWKDWSODLQWLIIV
    K    *RDGDQG:XFKLFKUHSRUWHGRQPXOWLSOHRFFDVLRQV           PD\EHUHTXLUHGWRDVVHUWWRHVWDEOLVKLPSURSHUPRWLYHQHHG
          WKDWQXUVHVLQWKHPHQWDOKHDOWKXQLWOHIWPHGLFDWLRQV    QRW FRQVWLWXWH GLUHFW HYLGHQFH RI LPSURSHU PRWLYH  ,Q
          XQDWWHQGHGDQGQHJOHFWHGWRUHPRYHNH\VIURPWKH          7KDGGHXV; Y %ODWWHU ZH KHOG WKDW LPSURSHU PRWLYH LQ D
          ORFNVRIFHOOGRRUV                                      UHWDOLDWLRQ FODLP FRXOG EH GHPRQVWUDWHG E\ FLUFXPVWDQWLDO
                                                                    HYLGHQFH7KDGGHXV;Y%ODWWHU)GWK
s$DW$PHQGHG&RPSO$IWHUOLVWLQJWKHLQVWDQFHV        &LUHQEDQF%HFDXVHWKHSODLQWLIIVKRXOGQRWKDYHWR
RI DOOHJHGO\ SURWHFWHG VSHHFK WKH SODLQWLIIVj DPHQGHG        DOOHJH PRUH IDFWV WR VXUYLYH D PRWLRQ WR GLVPLVV WKDQ KH
FRPSODLQWVWDWHGWKDWm>E@HJLQQLQJRQRUDERXW$SULO       ZRXOG QHHG WR DOOHJH DQG VXSSRUW WR VXUYLYH D PRWLRQ IRU
DQGFRQWLQXLQJWRWKHSUHVHQW0LWFKHOO9LVLQWLQHDQG*LOEHUW     VXPPDU\MXGJPHQWGLVWULFWFRXUWVPXVWDFFHSWDVVSHFLILF
DFWLQJLQGLYLGXDOO\DQGLQFRQFHUWZLWKRQHDQRWKHUKDYHWDNHQ      QRQFRQFOXVRU\ DOOHJDWLRQV RI IDFW WKRVH DOOHJDWLRQV WKDW
DGYHUVHDQGSXQLWLYHDFWLRQVDJDLQVW*RDGDQG:XFKLFKLQ            SURYLGHFLUFXPVWDQWLDOHYLGHQFHRILPSURSHULQWHQW6HHHJ
UHWDOLDWLRQ IRU WKH DFWLRQV RI *RDG DQG :XFKLFK GHVFULEHG   7UXORFN  )G DW  IDFWV WKDW VKRZ FLUFXPVWDQWLDO
DERYHls$DW$FFRUGLQJWRWKHSODLQWLIIVVXFKDFWLRQ      HYLGHQFHRILPSURSHULQWHQWVXIILFLHQWWRVXUYLYHGLVPLVVDOLQ
LQFOXGHG                                                           UHWDOLDWLRQFODLP
    D    7KHLQLWLDWLRQDQGSXUVXLWE\0LWFKHOODQG9LVLQWLQH      &'LVPLVVDOIRU)DLOXUHWR6WDWHD&ODLP
          RI LPSURSHU DQG XQZDUUDQWHG GLVFLSOLQDU\
          SURFHHGLQJVDJDLQVW*RDGDQG:XFKLFK                       7KHGLVWULFWFRXUWLQWKLVFDVHUHOLHGRQ9HQH\Y+RJDQLQ
                                                                    JUDQWLQJWKHGHIHQGDQWjVPRWLRQWRGLVPLVVIRUIDLOXUHWRVWDWH
    E    0LWFKHOO 9LVLQWLQH DQG *LOEHUW FRHUFHG 0$1&,        DFODLPSXUVXDQWWR5XOHE9HQH\LVQRORQJHUJRRG
          HPSOR\HHVWRJLYHIDOVHVWDWHPHQWVDJDLQVW:XFKLFK        ODZDIWHUWKH6XSUHPH&RXUWjVGHFLVLRQVLQ&UDZIRUG(ODQG
          DQG *RDG LQ RUGHU WR VXEVWDQWLDWH GLVFLSOLQDU\      6ZLHUNLHZLF]7KHUHIRUHZHPXVWUHYHUVHWKHRUGHURIWKH
          PHDVXUHVWDNHQDJDLQVW*RDGDQG:XFKLFKDQG              GLVWULFWFRXUWJUDQWLQJWKHGHIHQGDQWVjPRWLRQWRGLVPLVV
    F    9LVLQWLQH DQG *LOEHUW ILOHG LPSURSHU FULPLQDO                             ,,,&21&/86,21
          FKDUJHVDJDLQVW*RDGDQG:XFKLFKDQG
                                                                      )RU WKH IRUHJRLQJ UHDVRQV ZH 5(9(56( WKH GLVWULFW
    G    0LWFKHOO 9LVLQWLQH DQG *LOEHUW RSHQO\ GLVSDUDJHG    FRXUWjVJUDQWRIWKHGHIHQGDQWVjPRWLRQWRGLVPLVVDQGZH
          *RDGDQG:XFKLFKWRRWKHU0$1&,HPSOR\HHV                5(0$1'IRUSURFHHGLQJVFRQVLVWHQWZLWKWKLVRSLQLRQ
s$ DW   2Q 0D\   WKH GHIHQGDQWV PRYHG WR
GLVPLVVWKHSODLQWLIIVjDPHQGHGFRPSODLQWIRUIDLOXUHWRVWDWH
DFODLPXSRQZKLFKUHOLHIFDQEHJUDQWHGSXUVXDQWWR)HGHUDO
5XOHRI&LYLO3URFHGXUHE
  2Q6HSWHPEHUWKHGLVWULFWFRXUWHQWHUHGDQRUGHU
JUDQWLQJWKHGHIHQGDQWVjPRWLRQWRGLVPLVVRQWKHJURXQGWKDW
       *RDGHWDOY0LWFKHOOHWDO                 1R        1R                 *RDGHWDOY0LWFKHOOHWDO       

   7KXV DOWKRXJK &UDZIRUG(O LQYDOLGDWHV 9HQH\jV FLUFXLW              WKH GHIHQGDQWV ZHUH SURWHFWHG IURP WKH SODLQWLIIVj VXLW E\
FUHDWHG KHLJKWHQHG SOHDGLQJ UHTXLUHPHQW &UDZIRUG(O                     TXDOLILHGLPPXQLW\5HO\LQJRQ9HQH\Y+RJDQ)G
SHUPLWVGLVWULFWFRXUWVWRUHTXLUHSODLQWLIIVWRSURGXFHVSHFLILF           WK&LUWKHGLVWULFWFRXUWKHOGWKDWWKHSODLQWLIIVIDLOHG
QRQFRQFOXVRU\IDFWXDODOOHJDWLRQVRILPSURSHUPRWLYHEHIRUH                  WR DOOHJH VXIILFLHQW IDFWV WR VDWLVI\ WKH KHLJKWHQHG SOHDGLQJ
GLVFRYHU\LQFDVHVLQZKLFKWKHSODLQWLIIPXVWSURYHZURQJIXO                UHTXLUHPHQWWKDWDSSOLHVZKHQGHIHQGDQWVUDLVHWKHDIILUPDWLYH
PRWLYH DQG LQ ZKLFK WKH GHIHQGDQW UDLVHV WKH DIILUPDWLYH             GHIHQVHRITXDOLILHGLPPXQLW\HYHQLIDOOWKHIDFWVDOOHJHGLQ
GHIHQVHRITXDOLILHGLPPXQLW\:HHPSKDVL]HKRZHYHUWKDW                  WKHFRPSODLQWZHUHWUXHWKHSODLQWLIIVZRXOGQRWEHDEOHWR
WKH 6XSUHPH &RXUW LQ &UDZIRUG(O ZDV PRWLYDWHG E\ WKH                GHPRQVWUDWHWKDWWKHLUFRQVWLWXWLRQDOULJKWVKDGEHHQYLRODWHG
SDUWLFXODUSUREOHPUDLVHGE\WKHFRQMXQFWLRQRIFRQVWLWXWLRQDO               E\WKHGHIHQGDQWV ,QRUGHUWRPDNHDSULPDIDFLHFDVHRI
FODLPVWKDWUHTXLUHSURRIRILPSURSHUPRWLYHDQGWKHGRFWULQH                XQFRQVWLWXWLRQDO UHWDOLDWLRQ XQGHU WKH )LUVW $PHQGPHQW mD
RITXDOLILHGLPPXQLW\ZKLFKLVmDQHQWLWOHPHQWQRWWRVWDQG                 SODLQWLII PXVW GHPRQVWUDWH  WKDW >KH@ ZDV HQJDJHG LQ D
WULDORUIDFHWKHRWKHUEXUGHQVRIOLWLJDWLRQl6HH6DXFLHU            FRQVWLWXWLRQDOO\ SURWHFWHG DFWLYLW\  WKDW WKH GHIHQGDQWjV
6&WDWTXRWLQJ0LWFKHOOY)RUV\WK86                DGYHUVH DFWLRQ FDXVHG WKH SODLQWLII WR VXIIHU DQ LQMXU\ WKDW
  :H WKHUHIRUH GR QRW EHOLHYH WKDW GLVWULFW FRXUWV          ZRXOG OLNHO\ FKLOO D SHUVRQ RI RUGLQDU\ ILUPQHVV IURP
VKRXOGUHTXLUHSODLQWLIIVWRSURGXFHVSHFLILFQRQFRQFOXVRU\                 FRQWLQXLQJWRHQJDJHLQWKDWDFWLYLW\DQGWKDWWKHDGYHUVH
IDFWXDO DOOHJDWLRQV RI LPSURSHU PRWLYH LQ FDVHV LQ ZKLFK             DFWLRQ ZDV PRWLYDWHG DW OHDVW LQ SDUW DV D UHVSRQVH WR WKH
LPSURSHU PRWLYH LV QRW DW LVVXH RU LQ ZKLFK TXDOLILHG               H[HUFLVHRIWKHSODLQWLIIjVFRQVWLWXWLRQDOULJKWVl6WURXVVY
LPPXQLW\FDQQRWEHUDLVHGDVDQDIILUPDWLYHGHIHQVH,QRWKHU               0LFKLJDQ'HSjWRI&RUU)GWK&LU
FDVHVmVXPPDU\MXGJPHQWVHUYHVDVWKHXOWLPDWHVFUHHQWR                    7KHGLVWULFWFRXUWIRXQGWKDWVHYHQRIWKHHLJKWLQVWDQFHVRI
ZHHG RXW WUXO\ LQVXEVWDQWLDO ODZVXLWV SULRU WR WULDOl               VSHHFK OLVWHG LQ WKH SODLQWLIIVj DPHQGHG FRPSODLQW ODFNHG
&UDZIRUG(O  86 DW   VHH DOVR 6ZLHUNLHZLF] Y              FRQVWLWXWLRQDO SURWHFWLRQ  $QG DOWKRXJK WKH GLVWULFW FRXUW
6RUHPD6&Wm>WKH@QRWLFHSOHDGLQJ                   DJUHHGZLWKWKHSODLQWLIIVWKDWUHSRUWLQJ0$1&,jVIDLOXUHWR
                                                                             FRPSO\ ZLWK D FRQVHQW GHFUHH WR RXWVLGH PRQLWRUV ZRXOG
                                                                             FRQVWLWXWH FRQVWLWXWLRQDOO\ SURWHFWHG VSHHFK WKH FRXUW
&UDZIRUG(O  86 DW                                              FRQFOXGHG WKDW WKH SODLQWLIIV VWLOO ZRXOG QRW EH DEOH WR
     +RZHYHU ZH DJUHH ZLWK WKH )LUVW &LUFXLW WKDW WKH &RXUWjV GLFWD LQ      GHPRQVWUDWH WKDW WKHLU FRQVWLWXWLRQDO ULJKWV ZHUH YLRODWHG
&UDZIRUG(O ORRNV OLNH D KHLJKWHQHG SOHDGLQJ UHTXLUHPHQW $OWKRXJK ZH        EHFDXVH WKH\ GLG QRW DOOHJH DQ\ IDFWV OLQNLQJ WKH SURWHFWHG
EHOLHYH WKDW WKH 6XSUHPH &RXUW LQ &UDZIRUG(O FOHDUO\ UHMHFWHG FLUFXLW      VSHHFK WR WKH DGYHUVH DFWLRQ WDNHQ E\ 0$1&, RIILFLDOV
FUHDWHG KHLJKWHQHG SOHDGLQJ UHTXLUHPHQWV ZH QRWH WKDW WKHUH LV VWLOO
WHQVLRQ EHWZHHQ WKH &RXUWjV HQGRUVHPHQW RI WKH QRWLFH SOHDGLQJ V\VWHP
                                                                             DJDLQVWWKHP*RDGDQG:XFKLFKILOHGDWLPHO\DSSHDO
GHOLQHDWHG LQ )HGHUDO 5XOHV RI &LYLO 3URFHGXUH D DQG E LQ
6ZLHUNLHZLF] &UDZIRUG(O DQG /HDWKHUPDQ DQG WKH &RXUWjV GLFWD LQ                                    ,,$1$/<6,6
&UDZIRUG(O ,Q IDFW WKH ODQJXDJH WKH &UDZIRUG(O &RXUW TXRWHG IURP
sXVWLFH .HQQHG\jV FRQFXUUHQFH LQ 6LHJHUW Y *LOOH\ UHJDUGLQJ mVSHFLILF      $6WDQGDUGRI5HYLHZ
QRQFRQFOXVRU\ IDFWXDO DOOHJDWLRQVl UHIHUV WR D KHLJKWHQHG SOHDGLQJ
UHTXLUHPHQW ZKLFK sXVWLFH .HQQHG\ H[SODLQHG mLV D GHSDUWXUH IURP WKH         :HUHYLHZGHQRYRDGLVWULFWFRXUWjVJUDQWRIDPRWLRQWR
XVXDO SOHDGLQJ UHTXLUHPHQWV RI )HGHUDO 5XOHV RI &LYLO 3URFHGXUH  DQG
E    l 6LHJHUW Y *LOOH\  86    .HQQHG\ s
                                                                             GLVPLVVSXUVXDQWWR)HGHUDO5XOHRI&LYLO3URFHGXUHE
FRQFXUULQJ
                                                                             .RVWU]HZDY&LW\RI7UR\)GWK&LU
                                                                             ,QUHYLHZLQJD5XOHEPRWLRQWRGLVPLVVZHWUHDWDOO
     
     7KH &UDZIRUG(O &RXUW QRWHG WKDW m5XOH  YHVWV WKH WULDO MXGJH
                                                                             ZHOOSOHDGHGDOOHJDWLRQVLQWKHFRPSODLQWDVWUXHDQGZHZLOO
ZLWK EURDG GLVFUHWLRQ WR WDLORU GLVFRYHU\ QDUURZO\ DQG WR GLFWDWH WKH        ILQGGLVPLVVDOSURSHURQO\mLILWDSSHDUVEH\RQGGRXEWWKDWWKH
VHTXHQFH RI GLVFRYHU\l &UDZIRUG(O  86 DW 
     *RDGHWDOY0LWFKHOOHWDO                1R       1R                     *RDGHWDOY0LWFKHOOHWDO           

SODLQWLIIFDQSURYHQRVHWRIIDFWVLQVXSSRUWRILWVFODLPVWKDW       LWVGLVFUHWLRQVRWKDWRIILFLDOVDUHQRWVXEMHFWWRXQQHFHVVDU\
ZRXOGHQWLWOHLWWRUHOLHI>@l,GTXRWDWLRQRPLWWHG                DQGEXUGHQVRPHGLVFRYHU\RUWULDOSURFHHGLQJVl,GDW
                                                                          ,Q VXFK FDVHV WKH &RXUW H[SODLQHG WKDW GLVWULFW FRXUWV
% 4XDOLILHG ,PPXQLW\ DQG +HLJKWHQHG 3OHDGLQJ                       mPD\RUGHUDUHSO\WRWKHGHIHQGDQWjVRUDWKLUGSDUW\jVDQVZHU
   5HTXLUHPHQWV                                                         XQGHU )HGHUDO 5XOH RI &LYLO 3URFHGXUH D RU JUDQW WKH
                                                                        GHIHQGDQWjVPRWLRQIRUDPRUHGHILQLWHVWDWHPHQWXQGHU5XOH
   ,QFLYLOVXLWVIRUPRQH\GDPDJHVJRYHUQPHQWRIILFLDOVDUH           H  7KXV WKH FRXUW PD\ LQVLVW WKDW WKH SODLQWLII µSXW
HQWLWOHGWRTXDOLILHGLPPXQLW\IRUGLVFUHWLRQDU\DFWVWKDWGR           IRUZDUG VSHFLILF QRQFRQFOXVRU\ IDFWXDO DOOHJDWLRQVj WKDW
mQRW YLRODWH FOHDUO\ HVWDEOLVKHG >IHGHUDO@ VWDWXWRU\ RU           HVWDEOLVKLPSURSHUPRWLYHFDXVLQJFRJQL]DEOHLQMXU\LQRUGHU
FRQVWLWXWLRQDOULJKWVRIZKLFKDUHDVRQDEOHSHUVRQZRXOGKDYH           WRVXUYLYHDSUHGLVFRYHU\PRWLRQIRUGLVPLVVDORUVXPPDU\
NQRZQl  $QGHUVRQ Y &UHLJKWRQ  86              MXGJPHQWl,GDWTXRWLQJ6LHJHUWY*LOOH\86
 +DUORZ Y )LW]JHUDOG  86            .HQQHG\sFRQFXUULQJ7KH&RXUWZHQW
:KHWKHU SDUWLFXODU GHIHQGDQWV DUH HQWLWOHG WR TXDOLILHG           RQWRVD\WKDWWKHDERYHRSWLRQVH[LVWHYHQLIWKHGHIHQGDQW
LPPXQLW\LVDTXHVWLRQWREHUHVROYHGDWWKHHDUOLHVWSRVVLEOH          GRHVQRWUDLVHWKHDIILUPDWLYHGHIHQVHRITXDOLILHGLPPXQLW\
VWDJHRIOLWLJDWLRQ6DXFLHUY.DW]6&W            DQGWKDWmLIWKHGHIHQGDQWGRHVSOHDGWKHLPPXQLW\GHIHQVH
  7R GHWHUPLQH LI TXDOLILHG LPPXQLW\ DWWDFKHV WKH       WKHGLVWULFWFRXUWVKRXOGUHVROYHWKDWWKUHVKROGTXHVWLRQEHIRUH
6XSUHPH&RXUWKDVGHOLQHDWHGDWZRSDUWVHTXHQWLDODQDO\VLV           SHUPLWWLQJ GLVFRYHU\  7R GR VR WKH FRXUW PXVW GHWHUPLQH
,GDW)LUVWZHLQTXLUHZKHWKHUm>W@DNHQLQWKHOLJKW       ZKHWKHUDVVXPLQJWKHWUXWKRIWKHSODLQWLIIjVDOOHJDWLRQVWKH
PRVWIDYRUDEOHWRWKHSDUW\DVVHUWLQJWKHLQMXU\GRWKHIDFWV          RIILFLDOjVFRQGXFWYLRODWHGFOHDUO\HVWDEOLVKHGODZl,G
DOOHJHGVKRZWKHRIILFHUjVFRQGXFWYLRODWHGDFRQVWLWXWLRQDO
ULJKW"l,GDWm,IQRFRQVWLWXWLRQDOULJKWZRXOGKDYH
EHHQ YLRODWHG ZHUH WKH DOOHJDWLRQV HVWDEOLVKHG WKHUH LV QR         
                                                                              ,Q sXGJH WKH )LUVW &LUFXLW LQWHUSUHWHG WKLV GLVFXVVLRQ RI WKH DELOLW\
QHFHVVLW\ IRU IXUWKHU LQTXLULHV FRQFHUQLQJ TXDOLILHG               RI GLVWULFW FRXUWV mWR UHTXLUH WKDW SODLQWLIIV DOOHJH VSHFLILF IDFWV VXSSRUWLQJ
LPPXQLW\l  ,G  m>,@I D YLRODWLRQ FRXOG EH PDGH RXW RQ D   DQ DOOHJDWLRQ RI ZURQJIXO PRWLYHl SULRU WR GLVFRYHU\ WR YDOLGDWH WKH )LUVW
IDYRUDEOH YLHZ RI WKH SDUWLHVj VXEPLVVLRQV WKH QH[W            &LUFXLWjV KHLJKWHQHG SOHDGLQJ UHTXLUHPHQW           sXGJH  )G DW 
VHTXHQWLDO VWHS LV WR DVN ZKHWKHU WKH ULJKW ZDV FOHDUO\        HPSKDVLV LQ RULJLQDO :H UHVSHFWIXOO\ GLVDJUHH ,QVWHDG ZH EHOLHYH DV

HVWDEOLVKHGl,G                                                      WKH 7HQWK &LUFXLW QRWHG LQ &XUULHU WKDW mWKH &RXUW LQ &UDZIRUG(O ZDV
                                                                        FDUHIXO WR GLVWLQJXLVK EHWZHHQ WKH '& &LUFXLWjV VROXWLRQ WR SURWHFW
                                                                        JRYHUQPHQW RIILFLDOV IURP LQVXEVWDQWLDO FODLPV ZKLFK LW UHMHFWHG DQG WKH
   ,Q9HQH\Y+RJDQ)GWK&LUWKLVFRXUW           RSWLRQV RWKHUZLVH DYDLODEOH XQGHU WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH IRU
KHOGWKDWEHFDXVHTXDOLILHGLPPXQLW\LVDmWKUHVKROGlTXHVWLRQ          IHGHUDO WULDO MXGJHV WR GHDO ZLWK WKLV FRQFHUQl &XUULHU  )G DW 
IRU WKH GLVWULFW FRXUW m>W@KH WULDO FRXUW QHHG QRW GHQ\ D    HPSKDVLV LQ RULJLQDO VHH DOVR 5LSS\  )G DW  *LOPDQ s
GHIHQGDQWWKHULJKWWRTXDOLILHGLPPXQLW\VLPSO\EHFDXVHD              FRQFXUULQJ GLVWLQJXLVKLQJ EHWZHHQ m&LUFXLWFUHDWHGl UXOHV RI KHLJKWHQHG

FRPSODLQWDGHTXDWHO\DOOHJHVYLRODWLRQRIFOHDUO\HVWDEOLVKHG           SOHDGLQJ DQG WKH RSWLRQV DYDLODEOH WR GLVWULFW FRXUWV WR mZHHG RXW
                                                                        XQPHULWRULRXV FODLPVl SXUVXDQW WR WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH
ODZ5DWKHUDSODLQWLIIPXVWDOOHJHVXIILFLHQWIDFWVµWRFUHDWH       $V WKH &RXUW LWVHOI QRWHG
DJHQXLQHLVVXHDVWRZKHWKHUWKHGHIHQGDQWLQIDFWFRPPLWWHG                ,W LV WKH GLVWULFW FRXUW MXGJHV UDWKHU WKDQ DSSHOODWH MXGJHV OLNH
WKRVH DFWVjl  9HQH\  )G DW  TXRWLQJ 0LWFKHOO Y          RXUVHOYHV ZKR KDYH KDG WKH PRVW H[SHULHQFH LQ PDQDJLQJ FDVHV
)RUV\WK  86     8QGHU 9HQH\ LI D             LQ ZKLFK DQ RIILFLDOjV LQWHQW LV DQ HOHPHQW *LYHQ WKH ZLGH

GHIHQGDQW UDLVHV WKH DIILUPDWLYH GHIHQVH RI TXDOLILHG                  YDULHW\ RI FLYLO ULJKWV DQG mFRQVWLWXWLRQDO WRUWl FODLPV WKDW WULDO
                                                                             MXGJHV FRQIURQW EURDG GLVFUHWLRQ LQ WKH PDQDJHPHQW RI WKH
LPPXQLW\WKHSODLQWLIILVUHTXLUHGWRUHVSRQGWRWKDWGHIHQVH               IDFWILQGLQJ SURFHVV PD\ EH PRUH XVHIXO DQG HTXLWDEOH WR DOO WKH
E\SURYLGLQJmVSHFLILFQRQFRQFOXVRU\DOOHJDWLRQVRIIDFWWKDW              SDUWLHV WKDQ WKH FDWHJRULFDO UXOH LPSRVHG E\ WKH &RXUW RI
                                                                             $SSHDOV
       *RDGHWDOY0LWFKHOOHWDO                  1R        1R                  *RDGHWDOY0LWFKHOOHWDO        

FRXUWIDVKLRQHGSOHDGLQJUHTXLUHPHQWVQRWFRQWDLQHGLQWKH                    ZLOOHQDEOHWKHGLVWULFWFRXUWWRGHWHUPLQHWKDWWKRVHIDFWVLI
)HGHUDO5XOHVRI&LYLO3URFHGXUHl5LSS\)GDW                    SURYHGZLOORYHUFRPHWKHGHIHQVHRITXDOLILHGLPPXQLW\l
*LOPDQsFRQFXUULQJ:HDJUHH$OWKRXJKWKH6XSUHPH                    ,GDWm,IWKLVSOHDGLQJEXUGHQLVQRWFDUULHGE\SODLQWLII
&RXUWLQ&UDZIRUG(ORQO\UXOHGRQWKHYDOLGLW\RIWKH'&                   LQHLWKHUWKHRULJLQDOFRPSODLQWRUE\DSOHDGLQJLQUHVSRQVH
&LUFXLWjV KHLJKWHQHG EXUGHQ RI SURRI IRU SODLQWLIIV PDNLQJ             WRGHIHQGDQWjVDVVHUWLRQRIWKHTXDOLILHGLPPXQLW\GHIHQVH
FRQVWLWXWLRQDOFODLPVDJDLQVWJRYHUQPHQWRIILFLDOVWKDWLQYROYH               GLVPLVVDOLVSURSHUl,GDW%HFDXVH)HGHUDO5XOHRI
LPSURSHU PRWLYH WKH &RXUW H[SOLFLWO\ VWDWHG WKDW LW ZDV              &LYLO3URFHGXUHDRQO\UHTXLUHVWKDWDSOHDGLQJVHWIRUWKmD
JHQHUDOO\DGGUHVVLQJmZKHWKHUWKHFRXUWVRIDSSHDOVPD\FUDIW                 VKRUW DQG SODLQ VWDWHPHQW RI WKH FODLP VKRZLQJ WKDW WKH
VSHFLDOSURFHGXUDOUXOHVIRUVXFKFDVHVl&UDZIRUG(O                   SOHDGHULVHQWLWOHGWRUHOLHIlWKHGHFLVLRQLQ9HQH\LPSRVHGD
86DWVHHDOVR&XUULHU)GDWmWKHPDQQHU                   KHLJKWHQHGSOHDGLQJUHTXLUHPHQWRQFLYLOULJKWVSODLQWLIIVLQ
LQZKLFKWKH&RXUWIUDPHGWKHµEURDGjTXHVWLRQSUHVHQWHGIRU                  FDVHVLQZKLFKWKHGHIHQGDQWUDLVHGWKHDIILUPDWLYHGHIHQVHRI
DSSHDOVXJJHVWVWKDWWKH&RXUWjVUXOLQJLVQRWOLPLWHGWRWKH           TXDOLILHGLPPXQLW\
'& &LUFXLWjV KHLJKWHQHG EXUGHQ RI SURRIl  7KH &RXUWjV
UHDVRQLQJ LQ KROGLQJ WKDW QHLWKHU LWV TXDOLILHG LPPXQLW\                  $IWHUWKLVFLUFXLWGHFLGHG9HQH\WKH6XSUHPH&RXUWGHFLGHG
MXULVSUXGHQFHQRUWKH)HGHUDO5XOHVRI&LYLO3URFHGXUHSHUPLW                 &UDZIRUG(OY%ULWWRQ86,Q&UDZIRUG
WKHLPSRVLWLRQRIDKHLJKWHQHGEXUGHQRISURRIDSSOLHVHTXDOO\                (OWKH&RXUWKHOGWKDWDUHTXLUHPHQWRIWKH'&&LUFXLWWKDW
WR9HQH\jVKHLJKWHQHGSOHDGLQJUHTXLUHPHQW:HWKHUHIRUH                    SODLQWLIIVDFFXVLQJJRYHUQPHQWRIILFLDOVRIXQFRQVWLWXWLRQDO
KROG WKDW WKH 6XSUHPH &RXUWjV RSLQLRQ LQ &UDZIRUG(O                   PRWLYHSURYHVXFKPRWLYHE\FOHDUDQGFRQYLQFLQJHYLGHQFH
LQYDOLGDWHVWKHKHLJKWHQHGSOHDGLQJUHTXLUHPHQWWKLVFLUFXLW                  LQRUGHUWRGHIHDWDPRWLRQIRUVXPPDU\MXGJPHQWZDVQRW
HQXQFLDWHG LQ 9HQH\ Y +RJDQ IRU FLYLO ULJKWV SODLQWLIIV LQ          VXSSRUWHGE\WKH&RXUWjVTXDOLILHGLPPXQLW\MXULVSUXGHQFH
FDVHVLQZKLFKWKHGHIHQGDQWUDLVHVWKHDIILUPDWLYHGHIHQVHRI                DQGGLGQRWDFFRUGZLWKWKH)HGHUDO5XOHVRI&LYLO3URFHGXUH
TXDOLILHGLPPXQLW\                                                           $OWKRXJK WKH &RXUW VSHFLILFDOO\ DGGUHVVHG D KHLJKWHQHG
                                                                              EXUGHQ RI SURRI LW QRWHG DW WKH RXWVHW RI WKH RSLQLRQ WKDW
  7KH6XSUHPH&RXUWLQ&UDZIRUG(OGLGKRZHYHUUHLWHUDWH                    m7KHEURDGTXHVWLRQSUHVHQWHG>ZDV@ZKHWKHUWKHFRXUWVRI
WKDW LQ FDVHV LQ ZKLFK TXDOLILHG LPPXQLW\ LV UDLVHG DV DQ           DSSHDOVPD\FUDIWVSHFLDOSURFHGXUDOUXOHVIRUVXFKFDVHVWR
DIILUPDWLYHGHIHQVHmµILUPDSSOLFDWLRQRIWKH)HGHUDO5XOHVRI               SURWHFWSXEOLFVHUYDQWVIURPWKHEXUGHQVRIWULDODQGGLVFRYHU\
&LYLO 3URFHGXUH LV IXOO\ ZDUUDQWHGj DQG PD\ OHDG WR WKH              WKDW PD\ LPSDLU WKH SHUIRUPDQFH RI WKHLU RIILFLDO GXWLHVl
SURPSW GLVSRVLWLRQ RI LQVXEVWDQWLDO FODLPVl &UDZIRUG(O               &UDZIRUG(O86DW7KH&RXUWUHFRJQL]HGWKDW
86DWTXRWLQJ+DUORZY)LW]JHUDOG86                  WKH'&&LUFXLWjVUHTXLUHPHQWZDVWKDWFRXUWjVDWWHPSWmWR
   7KH &RXUW IXUWKHU VWDWHG WKDW m>Z@KHQ D             DGGUHVVDSRWHQWLDOO\VHULRXVSUREOHP%HFDXVHDQRIILFLDOjV
SODLQWLIIILOHVDFRPSODLQWDJDLQVWDSXEOLFRIILFLDODOOHJLQJD              VWDWH RI PLQG LV HDV\ WR DOOHJH DQG KDUG WR GLVSURYH
FODLPWKDWUHTXLUHVSURRIRIZURQJIXOPRWLYHWKHWULDOFRXUW                 LQVXEVWDQWLDOFODLPVWKDWWXUQRQLPSURSHULQWHQWPD\EHOHVV
PXVW H[HUFLVH LWV GLVFUHWLRQ LQ D ZD\ WKDW SURWHFWV WKH              DPHQDEOHWRVXPPDU\GLVSRVLWLRQWKDQRWKHUW\SHVRIFODLPV
VXEVWDQFHRIWKHTXDOLILHGLPPXQLW\GHIHQVH,WPXVWH[HUFLVH                DJDLQVW JRYHUQPHQW RIILFLDOVl  ,G DW  TXRWDWLRQ
                                                                              RPLWWHG+RZHYHUWKH&RXUWKHOGWKDWLWVTXDOLILHGLPPXQLW\
                                                                              MXULVSUXGHQFHmSURYLGHVQRVXSSRUWIRUPDNLQJDQ\FKDQJHLQ
     
     ,Q IDFW LQ VXSSRUW RI LWV UHMHFWLRQ RI WKH KHLJKWHQHG EXUGHQ RI SURRI
                                                                              WKHQDWXUHRIWKHSODLQWLIIjVEXUGHQRISURYLQJDFRQVWLWXWLRQDO
LQ &UDZIRUG(O WKH &RXUW FLWHG WZR FDVHV LQ ZKLFK LW KDG UHMHFWHG
                                                                              YLRODWLRQlLGDWDQGWKDWm>W@KHXQSUHFHGHQWHGFKDQJH
KHLJKWHQHG SOHDGLQJ UHTXLUHPHQWV &UDZIRUG(O  86 DW  VHH           PDGHE\WKH&RXUWRI$SSHDOVLQWKLVFDVHDOWHUVWKHFDXVH
DOVR 6ZLHUNLHZLF]  6 &W DW  UHMHFWLQJ KHLJKWHQHG SOHDGLQJ           RIDFWLRQLWVHOILQDZD\WKDWXQGHUPLQHVWKHYHU\SXUSRVHRI
VWDQGDUGV LQ 7LWOH 9,, DQG DJH GLVFULPLQDWLRQ FDVH
       *RDGHWDOY0LWFKHOOHWDO                   1R        1R                   *RDGHWDOY0LWFKHOOHWDO          

nWRSURYLGHDUHPHG\IRUWKHYLRODWLRQRIIHGHUDO                     DQ\VSHFLDOKHLJKWHQHGSOHDGLQJVWDQGDUGlEXWFIsXGJHY
ULJKWVl  ,G DW   7KH &RXUW QRWHG WKDW LW KDG              &LW\RI/RZHOO)GVW&LUKROGLQJWKDW
mFRQVLVWHQWO\GHFOLQHGVLPLODULQYLWDWLRQVWRUHYLVHHVWDEOLVKHG              WKH)LUVW&LUFXLWjVKHLJKWHQHGSOHDGLQJUHTXLUHPHQWDVDSSOLHG
UXOHVWKDWDUHVHSDUDWHIURPWKHTXDOLILHGLPPXQLW\GHIHQVHl                 LQDFDVHLQYROYLQJLPSURSHUPRWLYHVXUYLYHG&UDZIRUG(O
,G DW   $QG WKH &RXUW FRQFOXGHG WKDW mRXU FDVHV               7KLVFRXUWKDVPHQWLRQHG&UDZIRUG(ODQGLWVLPSDFWRQWKH
GHPRQVWUDWHWKDWTXHVWLRQVUHJDUGLQJSOHDGLQJGLVFRYHU\DQG                 KHLJKWHQHGSOHDGLQJUHTXLUHPHQWGHOLQHDWHGLQ9HQH\LQDIHZ
VXPPDU\MXGJPHQWDUHPRVWIUHTXHQWO\DQGPRVWHIIHFWLYHO\                     SXEOLVKHG FDVHV EXW ZH KDYH \HW WR UHVROYH ZKDW HIIHFW
UHVROYHGHLWKHUE\WKHUXOHPDNLQJSURFHVVRUWKHOHJLVODWLYH                  &UDZIRUG(O KDG RQ 9HQH\jV KHLJKWHQHG SOHDGLQJ
SURFHVVl,GFLWLQJ/HDWKHUPDQY7DUUDQW&RXQW\1DUFRWLFV                 UHTXLUHPHQW :HGRVRKHUH:HFRQFOXGHWKDWWKH6XSUHPH
,QWHOOLJHQFH  	 &RRUGLQDWLRQ 8QLW  86                  &RXUWjVGHFLVLRQLQ&UDZIRUG(OLQYDOLGDWHVWKHKHLJKWHQHG
                                                                     SOHDGLQJUHTXLUHPHQWWKDWZHHQXQFLDWHGLQ9HQH\6HH6DOPL
                                                                              Y6HFj\RI+HDOWKDQG+XPDQ6HUYV)GWK
   6LQFHWKH6XSUHPH&RXUWjVGHFLVLRQLQ&UDZIRUG(ORWKHU                   &LUm$SDQHORIWKLVFRXUWFDQQRWRYHUUXOHWKHGHFLVLRQ
FLUFXLWV KDYH KHOG WKDW&UDZIRUG(O LQYDOLGDWHV KHLJKWHQHG               RI DQRWKHU SDQHO  7KH SULRU GHFLVLRQ UHPDLQV FRQWUROOLQJ
SOHDGLQJ UHTXLUHPHQWV IRU FLYLO ULJKWV SODLQWLIIV LQ FDVHV LQ         DXWKRULW\XQOHVVDQLQFRQVLVWHQWGHFLVLRQRIWKH8QLWHG6WDWHV
ZKLFKWKHGHIHQGDQWUDLVHVWKHDIILUPDWLYHGHIHQVHRITXDOLILHG               6XSUHPH&RXUWUHTXLUHVPRGLILFDWLRQRIWKHGHFLVLRQRUWKLV
LPPXQLW\6HH7UXORFNY)UHHK)GWK&LU                  &RXUWVLWWLQJHQEDQFRYHUUXOHVWKHSULRUGHFLVLRQl
mWKHUHLVQRKHLJKWHQHGSOHDGLQJVWDQGDUGLQTXDOLILHG
LPPXQLW\FDVHVl&XUULHUY'RUDQ)GWK                      ,Q5LSS\Y+DWWDZD\)GWK&LUsXGJH
&LUFHUWGHQLHG6&Wm:HFRQFOXGHWKDW                 *LOPDQ FRQFOXGHG WKDW m, GR QRW EHOLHYH WKDW WKH SOHDGLQJ
WKLVFRXUWjVKHLJKWHQHGSOHDGLQJUHTXLUHPHQWFDQQRWVXUYLYH                   VWDQGDUGRXWOLQHGLQ9HQH\LVWKHFRUUHFWUXOHWRDSSO\QRZ
&UDZIRUG(Ol+DUEXU\Y'HXWFK)G'&                    WKDWWKH6XSUHPH&RXUWKDVH[SUHVVHGLWVGLVDJUHHPHQWZLWK
&LUUHY
GRQRWKHUJURXQGVVXEQRP&KULVWRSKHUY
+DUEXU\  6 &W   mSODLQWLIIV PDNLQJ
FRQVWLWXWLRQDOFODLPVEDVHGRQLPSURSHUPRWLYHQHHGQRWPHHW                      
                                                                                      ,Q .DLQ Y 1HVELWW  )G  WK &LU  D VXPPDU\
                                                                              MXGJPHQW FDVH D SDQHO RI WKLV FRXUW FLWHG 9HQH\ DQG WKHQ QRWHG LQ GLFWD
                                                                              WKDW m>WKH KHLJKWHQHG SOHDGLQJ UHTXLUHPHQW HQXQFLDWHG LQ 9HQH\@ LV QRW WR
                                                                             EH FRQIXVHG ZLWK D KHLJKWHQHG SURRI UHTXLUHPHQW ZKLFK ZDV FRQGHPQHG
      7KH &RXUW FLWHG WZR FDVHV LQ ZKLFK LW UHIXVHG WR FKDQJH WKH )HGHUDO
5XOHV JRYHUQLQJ SOHDGLQJ *RPH]       Y 7ROHGR    86  
                                                                              E\ WKH 6XSUHPH &RXUW LQ &UDZIRUG(O    l .DLQ  )G DW  Q
                                                                              %XW LQ 7KDGGHXV; Y %ODWWHU  )G  WK &LU  DOVR D
 LQ ZKLFK WKH &RXUW UHMHFWHG D UHTXLUHPHQW RI WKH )LUVW &LUFXLW WKDW
                                                         /HDWKHUPDQ
SODLQWLIIV DQWLFLSDWH WKH GHIHQVH RI TXDOLILHG LPPXQLW\ DQG
                                                                              VXPPDU\ MXGJPHQW FDVH D PDMRULW\ RI WKH HQ EDQF FRXUW VWDWHG LQ GLFWD

Y 7DUUDQW &RXQW\ 1DUFRWLFV ,QWHOOLJHQFH 	 &RRUGLQDWLRQ 8QLW      86
                                                                              WKDW m&UDZIRUG(O GLVDOORZV DQ\ W\SH RI µKHLJKWHQHG SOHDGLQJ VWDQGDUGj
                                                                                 l 7KDGGHXV;  )G DW  )LQDOO\ LQ 5LSS\ Y +DWWDZD\ 
   LQ ZKLFK WKH &RXUW UHMHFWHG D UHTXLUHPHQW RI WKH )LIWK
                                                                              )G  WK &LU  D FDVH LQ ZKLFK WKH SODLQWLIIjV FODLP ZDV
&LUFXLW WKDW SODLQWLIIV SOHDG ZLWK JUHDWHU VSHFLILFLW\ LQ FDVHV DOOHJLQJ
                                                                              GLVPLVVHG SXUVXDQW WR )HGHUDO 5XOH RI &LYLO 3URFHGXUH E WKH LVVXH
PXQLFLSDO OLDELOLW\ &UDZIRUG(O  86 DW 
                                                                              ZDV GLUHFWO\ DGGUHVVHG EXW DV WKH SDQHO ZDV HTXDOO\ GLYLGHG WKH LVVXH
                                                                              UHPDLQV XQUHVROYHG ,Q 5LSS\ sXGJH %HFNZLWK ZULWLQJ WKH OHDG RSLQLRQ
    
      7KH 6XSUHPH &RXUW UHLWHUDWHG WKLV YLHZ LQ LWV UHFHQW GHFLVLRQ LQ        FRQFOXGHG WKDW m>W@KH 6XSUHPH &RXUWjV GHFLVLRQ LQ &UDZIRUG(O    GLG
6ZLHUNLHZLF] Y 6RUHPD  6 &W   ,Q WKDW FDVH WKH &RXUW        QRW DOWHU WKH UHTXLUHPHQWV LGHQWLILHG LQ 9HQH\    l 5LSS\  )G DW
LQYDOLGDWHG WKH 6HFRQG &LUFXLWjV KHLJKWHQHG SOHDGLQJ UHTXLUHPHQW IRU 7LWOH     Q sXGJH *LOPDQ KRZHYHU ZURWH VHSDUDWHO\ EHFDXVH KH FDPH WR WKH
9,, SODLQWLIIV ,G DW  7KH &RXUW KHOG WKDW mXQGHU D QRWLFH SOHDGLQJ      RSSRVLWH FRQFOXVLRQ m, EHOLHYH WKDW &UDZIRUG(O LQYDOLGDWHG WKLV 6L[WK
V\VWHP LW LV QRW DSSURSULDWH WR UHTXLUH D SODLQWLII WR SOHDG IDFWV           &LUFXLWFUHDWHG UXOH RI KHLJKWHQHG SOHDGLQJl ,G DW  *LOPDQ s
HVWDEOLVKLQJ D SULPD IDFLH FDVHl ,G DW                                  FRQFXUULQJ sXGJH %RJJV LQ GLVVHQW GLG QRW DGGUHVV WKH LVVXH
