Sevugan v. Direct Energy Services, LLC
Filing
50
MEMORANDUM Opinion and Order signed by the Honorable Virginia M. Kendall on 8/29/2018. Defendants' Motion to Dismiss 42 is granted. Plaintiff's Second Amended Complaint is dismissed with prejudice. Mailed notice(lk, )
<![CDATA[
UL& KW G) FQ, UD%
VWURS6 %& Y VGORQ\H5 HH6 I ILWQLDO3 IR URYDI QL VHFQHUHI QL O OD VZDUG GQD VVL PVL' RW QRLWR0 HKW
IR VHVRSUXS URI HXUW VD WQLDOSPR& HKW QL VWFDI GHGDHOSO OHZ OOD VWSHFFD WUXRF HK7 F 3 YL& 5
GH) RVOD HHV VWN' WQLDOSPR& HKW RW GHKFDWWD UHWWHO UHIIR ODZHQHU GQD VLRQLOO,
URI WQHPHWDW6 HUXVROFVL' PURILQ8 ODLWQHGLVH5 \JUHQ( WFHUL' WFDUWQR& \ OSSX6 \WLFLUWFHO(
HKW VD OOHZ VD WQLDOSPR& HKW QL VQRLWDJHOOD HKW QR GHVDE HUD VWFDI JQLZROORI HK7
'1825*.&$%
GHWQDUJ VL VVL PVL' RW QRLWR0 HKW VQRVDHU JQLZROORI HKW UR) WN' WQLDOSPR&
GHGQHP$ GQRFH6 HKW VVL PVLG RW GHYRP QHKW \JUHQ( WFHUL' WN' P LDOF WFDUWQRF IR KFDHUE
HKW \OQR JQLJHOODHU WQLDOSPR& GHGQHP$ GQRFH6 D GHO L I II LWQLDO3 GQD WN' HHV WQLDOSPR&
GHGQHP$ WVUL) HKW VVL PVL' RW QRLWR0 V¶\JUHQ( WFHUL' GHWQDUJ WUXR& HK7 WN' WQHPKFLUQH
WVXMQX GQD JQLODHG ULDI GQD KWLDI GRRJ IR WQDQHYRF GHL OSPL IR KFDHUE WFDUWQRF IR KFDHUE
´$)&,³ WF$ VHFLWFDU3 VVHQLVX% HYLWSHFH' GQD GXDU) UHPXVQR& VLRQL OO, HKW IR QRLWDORLY D URI
V PLDOF JQLGXOFQL \JUHQ( WFHUL' WVQLDJD VP LDOF ZDO HWDWV VXRLUDY JQLJHOOD ´\JUHQ( WFHUL'³ &//
VHFLYUH6 \JUHQ( WFHUL' WQDGQHIH' WVQLDJD WLXV QRLWFD VVDOF D GHO LI QDJXYH6 \WWHK& I ILWQLDO3
5('52 '1$ 12,1,32 08'1$520(0
OODGQH. 0 DL QLJUL9 HOEDURQR+
& R1
WQDGQHIH'
QRLWDURSURF HUDZDOH'
D &// 6(&,95(6 <*5(1( 7&(5,'
Y
I ILWQLDO3
GHWDXWLV \OUDO L PLV VUHKWR O OD IR I ODKHE
QR GQD \ O ODXGL YLGQL 1$*89(6 <77(+&
12,6,9,' 15(76$(
6,21,//, )2 7&,576,' 15(+7521 (+7 52)
7582& 7&,576,' 6(7$76 '(7,18 (+7 1,
\ WLFLUWFHOH IR VURWXELUWVLG GQD VUHL OSSXV HORV HKW HUHZ VHLQDSPRF \WL OLWX ODFRO RW URLU3
WD WN' QL \ OSSXV \WLFLUWFHOH OLDWHU URI WHNUDP VWL GHWDOXJHUHG VLRQL OO, IR HWDW6 HK7
ZROHE GHVVHUGGD HXVVL HWDUDSHV D VL P LDOF
VLK WURSSXV RW WQHL FLI IXV HUD VODLUHWDP HVHKW UHKWHK: HYRUS RW HOED HE RW VWFHS[H I ILWQLDO3 VWFDI
HWDUWVXO OL GQD VJQLGDHOS HKW QR HWDUREDOH GQD KWLZ WQHWVLVQRF HUD \HKW HVXDFHE HVQRSVH5 V¶I ILWQLDO3
RW GHKFDWWD VWL ELK[H UXRI HKW UHGLVQRF OOLZ WUXR& HK7 GHWWLPR VQRLWDWLF ODQUHWQL G, ´HYRUS RW
HOED HE RW VWFHS[H \WUDS HKW VWFDI HKW HWDUWVXO OL RW³ VJQLGDHOS HKW HGLVWXR VODLUHWDP WL PEXV RVOD \DP
QRLWRP E D JQLVRSSR \WUDS $ GHWWLPR VQRLWDWLF ODQUHWQL UL& KW Q G)
RJDFLK& IR \WL& Y \NVRQLH* ´VJQLGDHOS HKW KWLZ WQHWVLVQRF HUD VQRLWDUREDOH ZHQ HKW VD JQRO
RV VQRLWDJHOOD ODXWFDI VLK QR HWDUREDOH \DP³ GQD ´\WLO L EL[HOI HURP KFXP VDK³ ODVVL PVLG D JQLODHSSD
UR QRLWRP E HOX5 D JQLVRSSR I ILWQLDOS D UHYHZR+ E 3 YL& 5 GH) HH6 VVL PVLG
RW QRLWRP D QR GHUHGLVQRF WRQ HUD VJQLGDHOS HKW HGLVWXR VUHWWDP \ OODUHQH*
WN'
KFUD0 IR VD QRLWDPURIQL QR GHVDE ´QRLWDPURIQ, \QDSPR&³ GHOWLWQH WURSH5 VVHUJRU3 G(PR&
D GQD WN' VHFLU3 \JUHQ( HOLWDOR9 URI JQLUDSHU3 RW VSHW6 HYL) WVL ONFHK& WQHPQLDWQR&
NVL5 \JUHQ( WFHUL' HKW WN' VWQHLOF ODSLFLQXP VWL IR HQR GQD \JUHQ( WFHUL' QHHZWHE
WQHPHHUJ$ HFLYUH6 QRLWDUHQH* FLUWFHO( D WN' HGLX* PDUJRU3 JQLFLU3 \OUXR+
V¶G(PR& VVLPVL' RW QRLWR0 HKW RW HVQRSVH5 VLK RW VWQHPXFRG UXRI JQLZROORI HKW GHKFDWWD RVOD
I I LWQLDO3
QRLWVHXT QL WRQ VDZ VWFDUWQRF HKW IR \WLFLWQHKWXD HKW GQD P LDOF WFDWQRF IR KFDHUE HKW
RW ODUWQHF GQD WQLDOSPRF HKW QL GHFQHUHIHU HUHZ \HKW HUHKZ VVL PVLG RW QRLWRP RW GHKFDWWD VWFDUWQRF
JQLUHGLVQRF UL& KW G) FQ, \JUHQ( 5= Y +%0* OODWHPHK& RVOD HHV
WN' P LDOF V¶I ILWQLDO3 RW ODUWQHF GQD WQ LDOSPR& HKW QL RW GHUUHIHU VL WL HVXDFHE VVLPVL' RW
QRLWR0 V¶\JUHQ( WFHUL' RW GHKFDWWD WFDUWQR& \ OSSX6 \JUHQ( WFHUL' HKW IR QRLVUHY HWHOSPRF
HKW VUHGLVQRF RVOD WUXR& HKW VVL PVLG RW QRLWRP WVULI V¶WQDGQHIH' QR UHGU2 URLUS VWL KWLZ V$
GHUUXFFR WRQ VDK VHWDU ODLWQHGLVHU OLDWHU UHZRO QUXW QL GQD VWVRF JQLVDKFUXS HODVHORKZ HFXGHU SOHK
GOXRZ 6(5$ \E GHQZDSV QRLWLWHSPRF HKW WDKW QRLWDWFHS[H HKW WQLDOSPR& HKW RW JQLGURFF$
WD G, VUHPRWVXF VLRQLOO, URI WVRF \WLFLUWFHOH HFXGHU RW VHLJHWDUWV JQLVDKFUXS HYLWDYRQQL UHKWR
GQD HVHKW HVX RW 6(5$ ZROOD RW VDZ QRLWDOXJHUHG HKW IR HVRSUXS HK7 WD G, VHFLUS
GHQLPUHWHGHUS WD \UHYL OHG \WLFLUWFHOH URI VWFDUWQRF VHUXWXI JQLVDKFUXS \E HFQDYGD QL \WLFLUWFHOH
JQLVDKFUXS GQD WL HVX VUHPRWVXF HPLW HKW UDHQ UR WD HFLUS D WD VUHNRUE GQD VWHNUDP HODVHORKZ
PRUI \WLFLUWFHOH JQLVDKFUXS VHLWL O LFDI QRLWFXGRUS \WLFLUWFHOH JQL \XE JQLGXOFQL VUHPRWVXF RW OOHVHU
\ HKW \JUHQH HKW JQLVDKFUXS URI VQRLWSR VXRLUDY HYDK 6(5$ WD G, SXNUDP D WD VUHPRWVXF
ULHKW RW WL JQL OOHVHU GQD HODVHORKZ WD \WLFLUWFHOH JQL \XE \WLFLUWFHOH IR VUHGDUW GQD VUHNRUE VD HWDUHSR
6(5$ HKW \ OODLWQHVV( WD G, VUHPRWVXF 6(5$ RW UHYLOHG RW VHLWLOLWX HKW RW \JUHQH HKW
UHYL OHG QHKW RKZ VUHFXGRUS \JUHQH PRUI \OWFHULGQL UR \OWFHULG \JUHQH HVDKFUXS 6(5$ HK7
WD G, HFLUS
\ OSSXV \WLFLUWFHOH HKW VWHV \WLOLWX HKW WRQ 6(5$ HKW WDKW VL VHFQHLUHS[H UHPRWVXF HKW HJQDKF \OQR
HKW HURIHUHK7 WD G, \WL OLWX HKW \E GHJUDKF HWDU GHWDOXJHU HKW WRQ 6(5$ HKW \E GHJUDKF
HWDU HKW \E GHL OSLWOXP GHVX K:N VUXRKWWDZROLN HKW QR GHVDE WVRF \OSSXV HKW VHWDOXFODF \WL OLWX HKW
UHPRWVXF 6(5$ QD URI UHYHZR+ G, VWVRF \UHYLOHG GQD \OSSXV HKW KWRE URI UHPRWVXF HKW O O LE
RW VHXQLWQRF GQD 6(5$ HKW \E GHL OSSXV \JUHQH HKW UHYLOHG RW VHXQLWQRF \WL OLWX JQLWVL[H V¶UHPRWVXF
HK7
WD G,
\JUHQH V¶UHPRWVXF WDKW JQL \OSSXV VQLJHE 6(5$ HKW 6(5$ QD RW \WL OLWX
D PRUI VHKFWLZV UHPRWVXF D QHK: WD G, \JUHQH UHYLOHG UR HFXGRUS WRQ RG 6(5$
WD G, VHWDU ULHKW WHV \HKW KFLKZ \E GRKWHP HKW UR VHWDU ULHKW IR ODYRUSSD &&, V¶QRLVVL PPR&
HFUHPPR& VLRQL OO, HKW NHHV RW JQLYDK WXRKWLZ VUHPXVQRF VLRQL OO, RW \JUHQH \OSSXV RW 6(5$
VUHLOSSX6 \JUHQ( OLDWH5 HYLWDQUHWO$ GHWDUHSR\OHWDYLUS GHZRO OD QRLWDOXJHUHG HK7 G, HWDWV HKW QL
& R1 RJDFLK&
IR R& U7
UD0 OO, '1
WD /:
NQD% WD1 P$ Y FQ, 9, [LUWD0 JH HH6
HURP WXRKWLZ VQRLWDJHOOD HVRKW I R
KWXUW HKW HPXVVD WRQ OOLZ WXE WLXVZDO D QL VQRLWDJHOOD ODXWFDI HVHKW GHWUHVVD ODUHQH* \HQURWW$ VLRQLOO, HKW WDKW WFDI HKW
I R HFLWRQ ODLFLGXM VHNDW WUXR& HKW HURIHUHK7
± WD
G,
´GHQRLWVHXT HE WRQQDF \ FDUXFFD HVRKZ VHFUXRV KJXRUKW
QRLWDQLPUHWHG \GDHU GQD HWDUXFFD IR HOEDSDF UR QRLWFLGVLUXM ODLURWLUUHW HKW QLKWLZ QZRQN \OODUHQHJ UHKWLH GQD HWXSVLG
HOEDQRVDHU RW WF HMEXV WRQ ³ VWFDI I R HFLWRQ ODLFLGXM HNDW \OQR \DP WL UL& KW G) VQUDW6
DJQHQQ( HHV
Y
VVLPVLG RW QRLWRP D JQLGLFHG QHKZ UHZ RS HFLWRQODLFLGXM VWL QLKWLZ VWFDI UHGLVQR F \DP WUXR& HKW HOLK:
Q WD WN' VWFDUWQR F \ OSSXV \WLFLUWF HOH RWQL VUHPRWVXF OORUQH RW VFLWFDW VHODV HYLWSH FHG GHVX 6(5$ HKW
JQLJHOOD 6(5$ QD WVQLDJD WUXR& WLXFUL& \WQXR& NRR& QL ODUHQH* \HQURWW$ HKW \E GHOLI WLXVZDO D QL HGDP VQRLWDJHOOD
JQLVVXFVLG ODUHQH* \HQURWW$ VLRQLOO, HKW \E GHXVVL HVDHOHU VVHUS D VHWLF IILWQLDO3 VQRLWDJHOOD HVHKW WURSSXV R7
HFLUS VLK7 K:N UHS
UXR\ JQLUX' PUH7 ODLWLQ,
IR HFLUS GH[LI D \JUHQ( WFHUL' \DS O OLZ XR\ PUH7 ODLWLQ,
JQLUX' K:N UHS HFLU3 HFLYUH6 QRLWDUHQH* FLUWFHO(
´PUH7 ODLWLQ,³ VHOF\F JQL O O LE \ OKWQRP
VL HFLYUHV UXR\ IR PUH7 ODLW LQ, HK7³ PUH7 ODLWLQ, HFLYUH6 IR VPUH7
VZROORI
VD HUD HFLYUHV QRLWDUHQHJ FLUWFHOH UXR\ IR VPUHW ODLWQHVVH HK7 HFLYUH6 IR VPUH7
WUDS WQDYHOHU QL GHGLYRUS WFDUWQR& HKW \ O ODFL ILFHS6 G, HWDU
HOEDLUDY D WD VLVDE KWQRPRWKWQRP D QR GHZHQHU \ OODFLWDPRWXD GHULS[H PUH7 ODLWLQ, HKW HFQR GQD
VKWQRP HYOHZW IR PUH7 ODLWLQ, QD URI K:N
IR HWDU GH[LI D GHGLYRUS WFDUWQR& HK7
WN' WD G, ´WFDUWQR& ³ HKW WFDUWQR& \ OSSX6 \WLFLUWFHO( QD QL JQL OORUQH \E WQDGQHIH'
RW G(PR& PRUI VUHGLYRUS \WLFLUWFHOH GHKFWLZV I ILWQLDO3 WVXJX$ GQXRUD UR Q,
WD G, \DGRW GHWDOXJHUHG \ O ODLWUDS UR GHWDOXJHUHG QLDPHU
DL EPXOR& IR WFLUWVL' HKW GQD VHWDWV \OQR VVHFRUS QRLWDOXJHUHG VLKW GHUHGLVQRF UR QDJHE UHKWLH
WDKW VHWDWV HKW IR WQLDOSPR& HKW JQLGURFF$
URI HURP QRL O O LP
G, VUHPRWVXF \WLOLWX ODQRLWLGDUW QDKW \WLFLUWFHOH
WVRPOD GLDS HYDK HGLZHWDWV VUHPRWVXF 6(5$ ODLFUHPPRFO ODPV GQD
ODLWQHGLVHU VUDH\ HHUKW WVDS HKW QL WDKW RVOD VHJH OOD WLXV HK7 G, \URWLUUHW VLKW QL VUHPRWVXF \WL OLWX
O DQRLWLGDUW QDKW \WLFLUWFHOH URI QRL O OLP
UHYR GLDS \URWLUUHW G(PR& HKW QL VUHPRWVXF 6(5$
\D0 RW HQX- PRUI &&, HKW RW JQLGURFFD WDKW VHJHO OD WLXVZDO HK7 Q
WD G, 6(5$ WQHUHIILG D WVQLDJD WUXRF HWDWV QL WLXVZDO D GHOL I ODUHQH* \HQURWW$ VLRQLOO, HKW
O LUS$ Q, WN' WD WN' VLRQLOO, QL \WLFLUWFHOH O OHV \OWQHUUXF 6(5$ WD G,
WQDGQHIH' WFDUWQRF GQRFHV HKW QR GHGXOFQRF PUH7 ODLWLQ, HWDUGH[LI KWQRPHYOHZW HKW QHK:
WN' WD G,
WFDUWQRF GQRFHV HKW RW HOEDFLOSSD WFDUWQR& HKW QL HJDXJQDO
HKW HGDP WFDUWQRF GHZHQHU HK7 WD G, HWDU GH[LI D WD UDH\ UHKWRQD URI WFDUWQRF HKW GHZHQHU
GQD WQDGQHIH' GHO ODF II LWQLDO3 GHGXOFQRF PUH7 ODLWLQ, HWDUGH[LI KWQRPHYOHZW HKW QHK:
Q
WD G, DL EPXOR& IR WFLUWVL' GQD DLQLJUL9 WVH: DL QLJUL9 HHVVHQQH7 DLQDYO \VQQH3 RLK2
DQLORUD& KWUR1 \HVUH- ZH1 QDJLKFL0 GQDO\UD0 \NFXWQH. DQDLGQ, VLRQL OO, HUDZDOH' IR VWUDS
UR OOD QL \WLFLUWFHOH HODVHORKZ IR WQHPHYRP HKW VHWDQLGURRF WDKW QRLWD]LQDJUR QRLVVL PVQDUW ODQRLJHU
D QRLWFHQQRFUHWQ, 0-3 HKW RW VUHIHU ´WHNUDP 0-3³ HK7
ODQLJLUR QL VLVDKSPH WN'
KWQRP VXRLYHUS HKW IR \DG VVHQLVXE JQLZROORI UR \DG KW HKW
QR HOEDO LDYD VL JQLFLU3 ZROHE QRLWFH6 QL KWURI WHV QRLWDPURIQL WFDWQRF HKW JQLVX
\JUHQ( WFHUL' JQL O ODF \E HFLUS H OEDLUDY V¶KWQRP W[HQ QLDWER \DP XR< QRLWHUFVLG
VWL QL \JUHQ( WFHUL' \E \ OHORV GHQLPUHWHG UHGGD QD VXOS GRLUHS HOEDFLOSSD
HKW URI HQR] GDRO \WL OLW8 FLUWFHO( HKW WD WHNUDP 0-3 HKW QL \WLFLUWFHOH URI VHFLUS
WHNUDP JQL OLDYHUS \ OODUHQHJ QRSX GHVDE K:N UHS HFLUS HOEDLUDY D WD XR\ HJUDKF
O O LZ \JUHQ( WFHUL'
HHI QRLWDO OHFQDF \OUDH RQ KWLZ K:N UHS HFLUS HOEDLUDY D WD
V LVDE KWQRPRWKWQRP D QR ZHQHU \ O ODFLWDPRWXD O OLZ WQHPHHUJ$ VLKW PUH7 ODLWLQ,
HKW IR QRLWHOSPRF QRS8
WQHPHHUJ$ VLKW RW HJQDK& D IR HFLWR1 ODZHQH5
QRLVVL PPR&
HKW
\E
GHWDOXJHU
WRQ
HUD
GQD
\ OHYLWLWHSPRF
WHV
HUD
\JUHQ(
WFHUL'
VD
KFXV VUHL OSSXV FLUWFHOH IR VHFLUS HFLYUHV QRLWDUHQHJ FLUWFHO( VHJUDKF GQD VHHI \WL OLWX
UHKWR GQD VH[DW HOEDFLOSSD UHKWR O OD VHGXOF[H WXE GQD VHJUDKF QRLVVLPVQDUW GQD
HFLYUHV QRLWDUHQHJ FLUWFHOH VHGXOFQL HFLUS VLK7 HYRED QRLWFH6 QL KWURI WHV VD PUH7
O DLWLQ, HKW URI WHV HFLUS HKW WD HFLYUHV QRLWDUHQHJ FLUWFHOH UXR\ URI \JUHQ( WFHUL'
\DS O OLZ XR\ PUH7 ODLWLQ, HKW JQLUX' VPUH7 WQHP\D3 GQD JQLOOL% JQLFLU3
VOLDWHG URI QRLWFH6
HH6 VLVDE KWQRPRWKWQRP D QR HFLYUHV JQLNDW HO LKZ HHI QRLWDOOHFQDF \OUDH RQ VL
HUHK7 HOF\F O O LE \ OKWQRP KFDH UHZRO UR UHKJLK HE \DP HFLUS VLK7 K:N UHS HFLUS
H OEDLUDY D \DS O OLZ XR\ GQD VLVDE KWQRPRWKWQRP D QR HXQLWQRF \ O ODFLWDPRWXD O OLZ
HFLYUHV UXR< PUH7 ODLWLQ,
UHWI$ K:N UHS HFLU3 HFLYUH6 QRLWDUHQH* FLUWFHO(
VHJUDKF GQD VHHI \WL OLWX UHKWR GQD VH[DW
VHGXOF[H GQD VHJUDKF QRLVVLPVQDUW GQD HFLYUHV QRLWDUHQHJ FLUWFHOH UXR\ VHGXOFQL
+:.
HFLU3 WHNUD0
UH3 G(PR&
HODVHORK: 0-3
WF2
SH6
+:. UH3
\JUHQ( WFHUL'
GRLUH3 JQLOOL%
WHNUDP 0-3 HKW QL VHFLUS WHNUDP JQL O LDYHUS
\ OODUHQHJ WD GHFLUS WRQ HUD GQD VHFLUS V¶G(PR& QDKW ´UHKJLK \ O ODLWQDWVEXV³ HUD VHWDU HOEDLUDY
V¶WQDGQHIH' WDKW HWDUWVQRPHG RW KSDUJ GQD WUDKF JQLZROORI HKW VHGLYRUS WQLDOSPR& HK7
WD WN' ´VHFLUS WHNUDP JQL O LDYHUS
\ OODUHQHJ QR GHVDE VHWDU WFHOIHU HJUDKF VHLWL OLWX ODFRO UHKWR GQD G(PR& WDKW VHWD@U>³ HKW WDKW
VWUHVVD WQLDOSPR& HKW VVHOHKWHQR1 HURIHE GHWVL[H PDUJRU3 HKW UHKWHKZ UR PDUJRU3 JQLFLU3
\ OUXR+ HKW RWQL GHWSR HYDK VUHPRWVXF ODLWQHGLVHU V¶G(PR& IR \QDP ZRK HWDWV WQLDOSPR& HKW
UR HGLX* HKW UHKWLH1 WD WN' WD G, ´VHFLUS WHNUDP HODVHORKZ 0-3 HQR=
G(PR& ODLWQHGLVH5 HKW QR GHVDE VHFLUS \WLFLUWFHOH \OUXRK³ \DS RW VUHPRWVXF VZROOD WDKW VUHPRWVXF
O DLWQHGLVHU RW VUHIIR G(PR& WDKW QRLWSR \OSSXV \JUHQH QD VL HGLX* PDUJRU3 JQLFLU3 \OUXR+
V¶G(PR& RW JQLGURFFD KFLKZ PDUJRU3 JQLFLU3 \OUXR+ V¶G(PR& RW VWQLRS II LWQLDO3 QRLWDJHOOD
VLKW WURSSXV R7 WD G, ´WQDGQHIH' JQLGXOFQL QDF VUHOLDWHU \WLFLUWFHOH UHKWR VD VHFLUS WHNUDP
HPDV HKW WD WHNUDP \ OLDG UR WRSV HKW QR VUHPRWVXF VWL URI \WLFLUWFHOH VHVDKFUXS³ G(PR& HVXDFHE
VHFLUS WHNUDP JQL O LDYHUS \ OODUHQHJ WFHO IHU \OHWDUXFFD VHFLUS G(PR& WDKW VHJHO OD I ILWQLDO3
WD G, GHUHIIR G(PR& WDKW VHWDU HKW WFHOIHU
WRQ GLG VHFLUS K:N HOEDLUDY V¶WQDGQHIH' HVXDFHE ´HYLWLWHSPRF WRQ VDZ JQLFLUS K:N³ HOEDLUDY
V¶WQDGQHIH' WDKW GQD ´UHGGD HOEDQRVDHU D VXOS GRLUHS HOEDFLOSSD HKW URI HQR] GDRO \WLOLW8 FLUWFHO(
HKW WD WHNUDP 0-3 HKW QL \WLFLUWFHOH URI VHFLUS WHNUDP JQL O LDYHUS \ OODUHQHJ QRSX JQLFLUS K:N
@HOEDLUDY> VWL HVDE WRQ GLG³ WQDGQHIH' WFDUWQRF ¶VHLWUDS HKW RW \UDUWQRF WDKW VHJHO OD I ILWQLDO3
WD G, UHEPHYR1 KJXRUKW UHEPHWSH6 PRUI HWDU HOEDLUDY
HKW GLDS I ILWQLDO3 WD G, HWDU HOEDLUDY D WD WFDUWQRF KWQRP\EKWQRP D RW I ILWQLDO3 GHKFWLZV
WF2
SH6
JX$
OXQX\D0
US$
UD0
EH)
QDFH'
YR1
WF2
SH6
JX$
OXQX\D0
US$
UD0
EH)
QDFH'
YR1
JX$
OXQX\D0
US$
UD0
EH)
QDFH'
YR1
WD WN'
KWRE UR UHGGD HOEDQRVDHUQX QD GHJUDKF WQDGQHIH' WHNUDP 0-3 HKW QL VHFLUS WHNUDP JQL O LDYHUS
\ O ODUHQHJ QR HWDU HOEDLUDY VWL HVDE WRQ GLG WQDGQHIH' UHKWLH I ILWQLDO3 RW JQLGURFFD HURIHUHK7
VWN'
RVOD HHV
WD
G,
´HP LW UHYR HWDXWFXOI WRQ VHRG GQD GH[L I³ VL WQHQRSPRF
UHGGD HKW HVXDFHE ´VWVRF HODVHORKZ QL VHJQDKF GQD VHFLUS WHNUDP JQL OLDYHUS PRUI GHWFHQQRFVLG
HUD VHWDU V¶WQDGQHIH' \KZ³ UR ´HWDU HOEDLUDY GHWDO I QL³ VLKW QLDOS[H WRQQDF WFDUWQRF HKW QL GHLILWQHGL
´UHGGD³ HKW QDKW UHKWUXI VHJHO OD I ILWQLDO3 WD G, O OHI VHFLUS HODVHORKZ QHKZ VHWDU WHNUDP
HODVHORKZ HKW QDKW ´UHKJLK \OWQDFL ILQJLV³ HWDU HKW JQLSHHN WXE HVRU VHFLUS HODVHORKZ QHKZ HWDU
HKW JQLVDHUFQL ´UHWQHF WLIRUS³ D VD HWDU HOEDLUDY VWL GHVX WQDGQHIH' WDKW VHJHO OD I ILWQLDO3
WD G,
HKW \E HFQDPURIUHS ODLWQDWVEXV WFDUWQRF HOEDHFURIQH GQD GL ODY D IR HFQHWVL[H HKW ³ VWQHPHOH
UXRI JQLZROORI HKW HJHOOD WVXP I ILWQLDO3 ZDO VLRQL OO, UHGQX WFDUWQRF IR KFDHUE D HWDWV R7
12,668&6,'
WD 68 ODET, JQLWLF
UL& KW G) RJDFLK& IR \WL& Y \HOXD&F0 ´KWXUW IR QRLWSPXVHUS VLKW RW GHOWLWQH
WRQ HUD P LDOF HKW IR VWQHPHOH HKW JQLWLFHU \OHUH P VQRLWDJHO OD \URVXOFQRF GQD VQRLVXOFQRF ODJH@/>³
WD G) VGORQ\H5
´URYDI UHK QL VHFQHUHI QL OOD @V>ZDUG GQD HXUW VD VWFDI GHGDHOS
OOHZ @V>WSHFFD \WUDS JQLYRPQRQ HKW RW HOEDURYDI WVRP WKJLO HKW QL³ WQLDOSPRF HKW VHXUWVQRF
WUXR& HK7
ODQLJLUR QL VLVDKSPH WD 68 \OEPRZ7 JQLWLF UL& KW
G) FQ, VYUH6 KWODH+ DUWQHFQR& Y &2(( ´¶OHYHO HYLWDOXFHSV HKW HYRED IHLOHU RW WKJLU D
HVLDUµ WDKW VQRLWDJHOOD JQLGLYRUS \E IHLOHU RW WKJLU D VDK I ILWQLDOS HKW WDKW WVHJJXV \ OODXWFD WVXP
WL IHLOHU URI VHVDE HOELVVRS JQLVROFHURI GLRYD RW WQLDOSPRF D URI KJXRQH WRQ VL W@,>³
68 ODET, Y WIRUFKV$ JQLWRXT G, ´GHJHOOD WFXGQRFVLP HKW URI HOEDL O VL WQDGQHIHG HKW
WDKW HFQHUHIQL HOEDQRVDHU HKW ZDUG RW WUXRF HKW VZROOD WDKW WQHWQRF ODXWFDI VGDHOS II LWQLDOS HKW QHKZ
\WL O LELVXDOS ODLFDI VDK P LDOF $³ 68 \OEPRZ7 Y SUR& OW$ OOH% JQLWRXT
UL& KW G) VLORSDQDLGQ, IR \WL& Y VPDG$ ´¶HFDI VWL QR HO ELVXDOS VL WDKW
I HLOHU RW PLDOF D HWDWVµ WVXP WQLDOSPRF D E UHGQX VVLPVLG RW QRLWRP D HYLYUXV R7³
'5$'1$76 /$*(/
WD G, UHEPHWSH6 HFQLV HWDU HOEDLUDY D WQDGQHIH' GLDS RKZ VUHPRWVXF VLRQLOO,
V¶WQDGQHIH' O OD GQD IOHVPLK IR I ODKHE QR P LDOF WFDUWQRF IR KFDHUE VLK VJQLUE I ILWQLDO3
6(5$ UHKWR \QD \E GHJUDKF VHFLUS RW VHFLUS
V¶WQDGQHIH' IR QRVLUDSPRF UHKWR UR KSDUJ WUDKF RQ VHGLYRUS WXE WD GL ´VHFLUS @>¶6(5$
UHKWR QDKW UHKJLK \ O ODLWQDWVEXV³ HUD VHFLUS V¶WQDGQHIH' WDKW VHJHOOD RVOD WQLDOSPR& HK7
O O LE \WL OLW8
FLUWFHO( HKW QL GHLILFHSV HWDG HKW \E \WL OLW8 FLUWFHO( HKW RW HXG HE O OLZ WQHP\DS
UXR< \WL OLW8 FLUWFHO( UXR\ \E GHWDPLWVH URGQD GHUXVDHP VD HOF\F JQL O OLE HKW JQLUXG
GHVX XR\ \WLFLUWFHOH IR WQXRPD HKW \E GHL OSLWOXP HFLUS HFLYUHV QRLWDUHQHJ FLUWFHOH
V¶\JUHQ( WFHUL' VHJUDKF UHKWR JQRPD QLDWQRF O O LZ OOLE WDK7 HFLYUHV FLUWFHOH
UXR\ URI VHJUDKF HFLYUHV FLUWFHOH ODWRW HKW KWURI WHV O OLZ KFLKZ \ OKWQRP O OLE D XR\
GQHV O OLZ \WL OLW8 FLUWFHO( UXR\ VPUHW WQHP \DS GQD JQL O OLE UXR\ RW V$ QRLVVLPPR&
HKW \E GHWDOXJHU WRQ HUD GQD \OHYLWLWHSPRF WHV HUD \JUHQ( WFHUL' VD KFXV
VUHLOSSXV FLUWFHOH IR VHFLUS HFLYUHV QRLWDUHQHJ FLUWFHO( VHJUDKF GQD VHHI \WLOLWX
UHKWR GQD VH[DW HOEDFLOSSD UHKWR O OD VHGXOF[H WXE GQD VHJUDKF QRLVVLPVQDUW GQD
HFLYUHV QRLWDUHQHJ FLUWFHOH VHGXOFQL HFLUS VLK7 HYRED QRLWFH6 QL KWURI WHV VD PUH7
O DLWLQ, HKW URI WHV HFLUS HKW WD HFLYUHV QRLWDUHQHJ FLUWFHOH UXR\ URI \JUHQ( WFHUL'
\DS O OLZ XR\ PUH7 ODLWLQ, HKW JQLUX' VPUH7 WQHP\D3 GQD JQLOOL% JQLFLU3
WFDUWQRF ¶VHLWUDS HKW IR VPUHW JQLZROORI HKW QR JQLVXFRI WQLDOSPR&
GHGQHP$ GQRFH6 HKW QL PLDOF WFDUWQRF IR KFDHUE VLK HJHOODHU RW VWSPHWWD I ILWQLDO3
WD G, RV RG WRQ GLG \JUHQ( WFHUL' HJHOOD RW GHO LDI WQLDOSPR&
HKW QL GHJHOOD VWFDI HKW GQD \JUHQ( WFHUL' \E \ OHORV GHQLPUHWHG UHGGD \UDQRLWHUFVLG D GQD VHFLUS
WHNUDP JQLO LDYHUS \ OODUHQHJ KWRE QR HWDU HOEDLUDY VWL HVDE RW \JUHQ( WFHUL' GHWWL PUHS \ OWLFL OS[H
WFDUWQRF ¶VHLWUDS HKW UHKWD5 WD G, G(PR& \E GHJUDKF HVRKW QDKW UHZRO UR VHWDU HODVHORKZ
RW UR HOEDO LDYD HVLZUHKWR VHWDU RW \OQR GHLW ´VURWFDI GHWDOHUWHNUDP³ QR GHVDE VHWDU HJUDKF RW
\JUHQ( WFHUL' RW HULXTHU WRQ GLG IOHVWL WFDUWQRF HKW WXE G(PR& \E GHJUDKF VHWDU QDKW UHKJLK HUHZ
UR VHWDU HODVHORKZ QL VHJQDKF KWLZ UR WHNUDP HKW QL HO EDOLDYD HVLZUHKWR VHWDU KWLZ HWDUXVQHPPRF
WRQ HUHZ VURWFDI GHWDOHUWHNUDP QR GHVDE WRQ HUHZ WDKW VHWDU HOEDLUDY JQLJUDKF \E WFDUWQRF
HKW GHKFDHUE \JUHQ( WFHUL' WDKW \ OQR GHJHOOD WQLDOSPR& GHGQHP$ WVUL) HKW WDKW GQXRI WUXR&
HKW \ O ODFL ILFHS6 WD WN' WFDUWQRF ¶VHLWUDS HKW QL PUHW \QD GHKFDHUE \JUHQ( WFHUL'
HJHOOD RW GHO LDI I ILWQLDO3 JQLGQLI WQHPHOH GULKW HKW HJHO OD \OWQHLFL IIXV RW HUXO LDI URI PLDOF WFDUWQRF IR
K FDHUE V¶II LWQLDO3 GHVVL P VLG \ OVXRLYHUS WUXR& HK7 W& SS$ OO, G(1 R&
VQ, HIL/ \QROR& WVUL) Y R&
WQHFQL9 :: JQLWRXT UL& KW G) NQD%
\WL& O¶WD1 Y &// YH' UHJH5 ´VHJDPDG WQDWOXVHU GQD WQDGQHIHG HKW \E KFDHUE D I ILWQLDOS
HXUW IL QHYH WQDYHOHUUL VL \WLFLUWFHOH URI HFLUS WHNUDP HODVHORKZ HKW WFHOIHU PDUJRU3 JQLFLU3
\ OUXR+ HKW KJXRUKW GHUHIIR VHWDU \OUXRK V¶G(PR& WDKW PLDOF I ILWQLDO3 UHWWDP ODLWLQL QD V$
VQRVDHU ODUHYHV
URI VO LDI ´VHFLUS WHNUDP JQLO LDYHUS \ O ODUHQHJ³ WFHOIHU VHFLUS HODVHORKZ GQD G(PR& WDKW QRLWUHVVD
V ¶II LWQLDO3 WX% VHFLUS WHNUDP HODVHORKZ GQD G(PR& RW VHWDU V¶WQDGQHIH' JQLUDSPRF VQRLWDJHOOD
HKW RW \OQR VNRRO HURIHUHKW WUXR& HK7 WD G) \HOXD&F0 HXUW HUD VQRLWDJHO OD \URVXOFQRF
KFXV HPXVHUS WRQ O OLZ WUXR& HKW GQD 6(5$ GQD VHLWL OLWX UHKWR \E GHJUDKF HVRKW QDKW UHKJLK
HUHZ VHWDU V¶WQDGQHIH' WDKW QRLWUHVVD HKW URI WURSSXV ODXWFDI RQ VHGLYRUS WQLDOSPR& HKW UHYHZR+
WD G,
VHWDU ¶6(5$ GQD ¶VHLWLOLWX UHKWR GQD V¶G(PR& QDKW UHKJLK HUHZ VHFLUS
H OEDLUDY V¶WQDGQHIH' HVXDFHE ´HQR] GDRO \WL OLW8 FLUWFHO( HKW WD WHNUDP 0-3 HKW QL \WLFLUWFHOH URI
VHFLUS WHNUDP JQL OLDYHUS \ OODUHQHJ³ QR VHFLUS VWL HVDE RW GHO LDI WQDGQHIH' VHJHOOD I ILWQLDO3
´GRLUHS HOEDFLOSSD
HKW URI HQR] GDRO \WLOLW8 FLUWFHO( HKW WD WHNUDP 0-3 HKW QL \WLFLUWFHOH URI VHFLUS
WHNUDP JQLOLDYHUS \OODUHQHJ QR GHVDE K:N UHS HFLUS HOEDLUDY³ HJUDKF RW HUXOLD) D
QUXW QL VQRLWDJHOOD
HVHKW IR KFDH VHVVHUGGD WUXR& HK7
WD G,
´HYRED HKW OOD G UR OHYHO HOEDQRVDHUQX
QD RW UHGGD VWL @JQL>VDHUFQL F HWDU HYLWLWHSPRF D HGLYRUS RW @JQL>OLDI E GRLUHS HOEDFLOSSD HKW URI
HQR] GDRO \WL OLW8 FLUWFHO( HKW WD WHNUDP 0-3 HKW QL \WLFLUWFHOH URI VHFLUS WHNUDP JQL O LDYHUS \ O ODUHQHJ
QRSX VHFLUS VWL HVDE RW @JQL>O LDI³ ³ \E WFDUWQRF HKW IR VQRLVLYRUS HVHKW GHKFDHUE \JUHQ( WFHUL'
WDKW VHJHOOD ZRQ I ILWQLDO3 GHGGD VLVDKSPH WD WN' JQLWLF ± ± WD WN'
KWQRP VXRLYHUS HKW IR \DG VVHQLVXE JQLZROORI UR \DG KW HKW QR HOEDO LDYD
VL JQLFLU3
ZROHE QRLWFH6 QL KWURI WHV QRLWDPURIQL WFDWQRF HKW JQLVX \JUHQ(
WFHUL' JQL O ODF \E HFLUS HOEDLUDY V¶KWQRP W[HQ QLDWER \DP XR< QRLWHUFVLG
VWL QL \JUHQ( WFHUL' \E \OHORV GHQLPUHWHG UHGGD QD VXOS GRLUHS HOEDFLOSSD
HKW URI HQR] GDRO \WLOLW8 FLUWFHO( HKW WD WHNUDP 0-3 HKW QL \WLFLUWFHOH URI VHFLUS
WHNUDP JQLOLDYHUS \OODUHQHJ QRSX GHVDE K:N UHS HFLUS HOEDLUDY D WD XR\ HJUDKF
OOLZ \JUHQ( WFHUL' HHI QRLWDOOHFQDF \OUDH RQ KWLZ K:N UHS HFLUS HOEDLUDY D WD
V LVDE KWQRPRWKWQRP D QR ZHQHU \ O ODFLWDPRWXD O OLZ WQHPHHUJ$ VLKW PUH7 ODLWLQ,
HKW IR QRLWHOSPRF QRS8
WQHPHHUJ$ VLKW RW HJQDK& D IR HFLWR1 ODZHQH5
WD WN' HHV VHFLUS WHNUDP \ OLDG UR WRSV QR \OHU VHLWL OLWX VDHUHKZ HOSPD[H UR) UHI ILG GOXRKV
VHFLUS ¶VHLWL OLWX GQD ¶6(5$ WDKW VWVHJJXV² WD WN' HHV VHUXWXI JQLVDKFUXS UR VUHFXGRUS
\ WLFLUWFHOH JQLVDKFUXS KJXRUKW JH²VHLWL OLWX GHWDOXJHU IR WDKW PRUI UHIILG HODVHU URI \JUHQH
JQLVDKFUXS IR VGRKWHP ¶6(5$ WDKW WFDI HKW \ O ODQRLWLGG$ QRLWLWHSPRF WFHULG HURP V¶WQDGQHIH' VD
HYUHV \ OEDXJUD GQD VHWDU \WLOLWX RW HYLWDQUHWOD QD VUHPXVQRF UHIIR RVOD WDKW 6(5$ UHKWR HKW KWLZ
RVOD VHWHSPRF WQDGQHIH' URWLWHSPRF \OQR V¶WQDGQHIH' WRQ VL G(PR& WX% ODQLJLUR QL VLVDKSPH
WD WN'
´HFLUS WHNUDP 0-3 HWLVLXTHU HKW QRSX GHVDE GQD HYLWLWHSPRF HUD KFLKZ VHFLUS
IR QRLWDWQHVHUSHU \UDLWQHGLYH QD VD \OHUHP³ VHFLUS G(PR& RW VHWLF HK WDKW VWL PGD I ILWQLDO3
WQDSLFLWUDS WHNUDP HQR QDKW HURP \E GHJUDKF
VHFLUS VHGXOFQL \ OLUDVVHFHQ ´VHFLUS WHNUDP JQL O LDYHUS \ OODUHQH*³ VWQDSLFLWUDS WHNUDP UHKWR HVHKW
\E GHJUDKF VHFLUS HKW VHURQJL WL HVXDFHE ´VHFLUS WHNUDP JQL O LDYHUS \ O ODUHQHJ³ IR HYLWDWQHVHUSHU
VL HQROD G(PR& WDKW P LDOF VLK VHQLPUHGQX 6(5$ GQD VHLWL OLWX UHKWR G(PR& VHGXOFQL VLRQLOO,
QL WHNUDP \ OSSXV \WLFLUWFHOH HKW WDKW QRLWDJHOOD V¶I ILWQLDO3 UHYHZRK \OWQDWURSPL HUR0
\ OJQLGURFFD VHFLUS VWL GHUHZRO G(PR& URQ WQDGQHIH' UHKWLHQ WXE
UHEPHFH' GQD \D0 QHHZWHE GHQLOFHG VHFLUS WHNUDP 0-3 WDKW ZRKV KSDUJ GQD WUDKF HKW
HOSPD[H UR) VHFLUS WHNUDP HODVHORKZ NFDUW \OWQHWVLVQRF WRQ RG VHWDU GH[LI G(PR& WDKW VWVHJJXV
KSDUJ GQD WUDKF HKW WD HFQDOJ NFLXT D WFDI Q, VHFLUS WHNUDP \OUXRK HKW RW GHLW RVOD HUHZ VHWDU GH[LI
HVHKW VWVHJJXV WQLDOSPR& HKW QL JQLKWR1 PDUJRUS HWDU \OUXRK \QD RWQL WSR WRQ GLG RKZ VUHPRWVXF
GHJUDKF G(PR& VHWDU GH[LI HKW HUD VHFLUS WHNUD P HODVHORKZ GQD G(PR& HKW RW VHFLUS V¶WQDGQHIH'
JQLUDSPRF WUDKF HKW QL GHWVLO VHWDU HK7 GLDS VWQDSLFLWUDS PDUJRU3 HKW VHWDU \OUXRK WDKZ HJHOOD
WRQ VHRG WQLDOSPR& HKW UHYHZRK \OWQDWURSPL HUR0 PDUJRUS HKW RW QL GHWSR VUHPRWVXF V¶G(PR&
IR \QDP ZRK UR HWDU HOEDLUDY D WQDGQHIH' JQ L \DS VDZ II LWQLDO3 QHKZ UHEPHYR1 KJXRUKW
UHEPHWSH6 QHHZWHE GHUHIIR VDZ PDUJRU3 VLKW UHKWHKZ VHWDFLGQL WQLDOSPR& HKW QL JQLKWR1
WN'
´QRLWDOXSRS V¶HWDWV HKW IR WQHFUHS UR VLRQLOO, QUHKWXR6 VVRUFD VUHPRWVXF QRLOOLP QDKW HURP RW HFLYUHV @G>HGLYRUS³
GQD ´VLRQLOO, QL \WLOLW8 FLUWFHO( WVHJUD/³ HKW VDZ G(PR& IR VD G(PR& \ E GHKVLOEXS VODLUHWDP RW JQLGUR FF$
UD0 <1'6
WD /: 9& R1 SUR& VYUH6 \JUHQ(
\DZHWD* Y QHOPD+ GQD UL& G [¶SS$ ) FQ, $3 \JUHQ( QRLUDW6 Y HJQDU2
JQLWLF WD WN' HH6 JQLFLUS HOEDLUDY HKW IR WQHQRSPRF \UDQRLWHUFVLG HKW VVHUGGD RW VO LDI WL
HVXDFHE WFDUWQRF HKW IR KFDHUE HO ELVXDOS D HJHO OD RW WQHLFL I IXVQL HE GOXRZ HQROD WDKW VHFLUS WHNUDP
JQL O LDYHUS \ OODUHQHJ WFHOIHU WRQ GLG HORKZ D VD VHWDU V¶WQDGQHIH' IL QHYH HURIHUHK7 WD WN'
VHWDU HODVHORKZ UR WHNUDP G(PR& RW GHWDOHUQX \OHWHOSPRF WQHQRSPRF \UDQRLWHUFVLG D JQLGXOFQL
URWFDI HQR QDKW HURP QR HWDU VWL HVDE RW WQDGQH IH' GHZROOD WFDUWQRF ¶VHLWUDS HKW UHGUR URLUS VWL QL
GHQLDOS[H WUXR& HKW VD WFDI Q, VHWDU KFXV HJUDKF RW WQDGQHIH' HULXTHU WRQ VHRG WFDUWQRF ¶VHLWUDS
HKW HVXDFHE KFDHUE D HJHOOD RW VO LDI PLDOF VLK7
VHFLUS WHNUDP HODVHORKZ KWLZ UR VHWDU V¶G(PR&
KWLZ HWDUXVQHPPRF VHWDU HJUDKF RW GHO LDI WQDGQHIH' WDKW P LDOF D RW QZRG VOLRE ´VHFLUS WHNUDP
JQL O LDYHUS \ O ODUHQHJ³ QR HWDU VWL HVDE RW GHO LDI WQDGQHIH' WDKW P LDOF V¶I ILWQLDO3 \OHWDPLWO8
VURWLWHSPRF
UHYR IR VWVLVQRF II LWQLDO3 RW JQLGURFFD WDKW WHNUDP \ OSSXV \WLFLUWFHOH QD QL ´VHFLUS WHNUDP
JQL OLDYHUS \ OODUHQHJ³ HKW WFHOIHU \OHWDUXFFD HQROD VHFLUS V¶G(PR& WDKW UHIQL \ OEDQRVDHU WRQQDF
WUXR& HKW HURIHUHK7
HORKZ D VD WHNUDP HKW IR HYLWDWQHVHUSHU WRQ HURIHUHKW GQD 6(5$ UHKWR
GQD WQDGQHIH' HNLO VUHL OSSXV \WLFLUWFHOH UHO ODPV UHKWR IR HYLWDWQHVHUSHU WRQ HUD VHFLUS V¶G(PR&
HYHLOHE RW QRVDHU UHKWUXI VHGLYRUS UHKWDU WXE WD WN' HHV VP LDOF I ILWQLDO3 VD ´URWDUDSPRF
HOEDQRVDHU³ D WL HNDP \ O ODFLWDPRWXD WRQ VHRG
´VLRQL O O, QL \WLOLW8 WVHJUD/³ HKW VL G(PR&
WDKW WFDI HKW \ O ODQL) VWHNUDP HVRKW QL \WL OLWDORY GLRYD RW VHVDKFUXS ULHKW HJGHK QDF 6(5$
´HXVVL HKW QR WQHOLV VL WQHPHHUJD
¶VHLWUDS HKW WQHW[H HKW RW \OQR HWDUHSR &&8 HKW IR VQRLVLYRUS JQLOOLISDJ HKW UH YH Z R+ &&8 HKW QL KWURI WHV VD VPUHW
WFDUWQRF HOEDQRVDHU \OSPL VWUXRF HXVVL QD QR WQHOLV VL V GR RJ IR HODV HKW URI WQHPHHUJD QD QHK:³ \OX- OO,
'1
WD /: 9& R1
R& QRVIDWVX* % 5 Y $1 P$ IR NQD%
GHJUDKF WQXRPD HKW I R
VVHQHOEDQRVDHU HKW I R IRRUS VHULXTHU HFLUS RW WFHSVHU KWLZ HWLQLIHGQL VL WDKW WFDUWQRF HFLYUHV W& SS$ OO,
G(1
HFL5 Y SVR+ PH0 \URWFL9 GHWWLPR VQRLWDWLF ODQUHWQL ´GHLOSPL VL HFLUS HOEDQRVDHU D RV PUHW
HFLUS D \OODLWQHVVH VL QRLVLYRUS QRLWDFXGH HJHOORF V¶WQHPHHUJD WQHPHOWWHV HKW PRUI JQLVVLP PUHW HK7 HFLUS HOEDQRVDHU
D GHGQHWQL \HKW WDKW GHLOSPL HE OOLZ WL PUHW HFLUS D RW VD WQHOLV QHH E HYDK WFDUWQRF D RW VHLWUDS QHK:³ W&
SS$ OO, G(1 DLVVDUJQ,
Y DLVVDUJQ,
´HFLUS JQLQLPUHWHG IR GRKWHP FLILFHSV HURP UHKWRQD UR HFLUS
RW VD WQHOLV VL WFDUWQRF D HUHKZ ZDO WFDUWQRF UHGQX PUHW GHLOSPL QD VL WL GQLI HZ ¶HOEDQRVDHUµ PUHW HKW GHVX HYDK
GOXRF IOHVWL WQHPHHUJD HKW KJXRKWO$³ W& SS$ OO, G(1 WGLPKF6
IR HJDLUUD0 HU Q,
JQLWL&
VWL QL \JUHQ( WFHUL' \E \ OHORV GHQLPUHWHG HE RW³ VL UHGGD HKW WDKW VHGLYRUS \ OWLFLOS[H WFDUWQRF
HKW WD WN' HHV ´GHLILWQDXTQX GQD GHELUFVHGQX³ VL UHGGD HKW WDKW P LDOF V¶I ILWQLDO3
HWLSVHG UHKWD5
HU H +
GHJUDKF HE RW UHGGD HKW IR WQXRPD HKW RW VD WQHOLV WRQ VL WFDUWQRF ¶VHLWUDS HKW
´ V H FL Y U H V G Q D V G R R J H K W U R I H FL U S HO E D Q R V D H U D \ D S R W W Q H P H H U J D Q D VL H U H K W W D K W V H L O S PL Z D O H KW
GH WDVQ HSPR F HE R W VL UH L OSSXV H K W WQ XR PD H K W WXR JQ L WW HV Q R L VL YR US R Q VL HUHK W GQ D UH K WR Q D R W
VHFLYUHV
UR VHOFLWUD VHL OSSXV \WUDS HQR KFLKZ UHGQX GHL OSPL UR VVHUS[H WFDUWQRF D VL HUHKW HUHKZ VQRLWDXWLV
Q L VLRQL OO, Q, G(1 HGGHR* Y FQ, EXO& VUHGOLX% SVR+ WQDWVHWRU3
HH6 HQR ´HOEDQRVDHU³ D HE WVXP HFLUS HKW WDKW WDKW VHL OSP L ZDO HKW HFLUS RW VD WQHOLV VL VHFLYUHV
UR VGRRJ URI WFDUWQRF D HUHKZ ZDO VLRQL OO, UHGQX WDKW WFHUURF VL I ILWQLDO3
VHVDF JQLWVLO WD
WN' Q WD WN' HH6 ´HOEDQRVDHU³ HE WVXP HFLUS HKW WDKW VHLOSPL ZDO HKW HWLQL IHGQL
VL PUHW HFLUS HKW HUHKZ UR PUHW HFLUS D RW VD WQHOLV VL WFDUWQRF D HUHKZ WDKW HOSLFQLUS QRLWDWHUSUHWQL
WFDUWQRF ODUHQHJ HKW URI JQLGQDWV VHVDF ODUHYHV VHWLF I ILWQLDO3
WD WN'
´HOSRHS
H OEDQRVDHU IR VQRLWDWFHS[H \UDQLGUR HKW KWLZ HFQDGURFFD QL GHXUWVQRF HE UHGGD HKW WDKW VHULXTHU
ZDO VLRQL OO,³ WDKW VHXJUD I ILWQLDO3 \ O ODFL ILFHS6 ´HOEDQRVDHUQX³ VDZ WQDGQHIH' \E GHJUDKF UHGGD
\ UDQRLWHUFVLG HKW WDKW JQLJHOOD HPLW VLKW \E HFLUS HOEDLUDY V¶WQDGQHIH' IR WQHQRSPRF \UDQRLWHUFVLG
HKW JQLVVHUGGD GQD WQLDOSPRF VXRLYHUS VLK QL \FQHLFLIHG HKW HUXF RW VWSPHWWD I ILWQLDO3
HOEDQRVDHU VL WDKW
´QRLWHUFVLG VWL QL \JUHQ( WFHUL' \E \OHORV GHQLPUHWHG UHGGD³ QD HJUDKF RW HUXOLD) E
WQDQHYRF HKW UHGQX HUD VQRLWDJLOER V¶WQDGQHIH' WDKZ RV IL UR HUHK VHLOSSD JQLODHG ULDI GQD KWLDI
GR RJ IR WQDQHYRF HKW UHKWHKZ VVHUGGD WRQ GHHQ WL WFDUWQRF HKW QL QHWWLUZ VD PUHW HKW IR VVHQHWLQLIHGQL HKW QR GHVDE
´HOEDQRVDHU³ HE WVXP UHGGD HKW WDKW VGQLI WUXR& HKW HVXDFH% GHWWLPR VQRLWDWLF ODQUHWQL ´VHLWUDS HKW IR VQRLWDWFHS[H
HOEDQRVDHU HKW KWLZ WQHWVLVQRFQL UHQQDP D QL UR \ OVXRLFLUSDF \OLUDUWLEUD WRQ \OEDQRVDHU WL HVLFUH[H RW QRLWHUFVLG
ODXWFDUWQRF KWLZ GHWVHY \WUDS HKW VHULXTHU VHLWUDS JQLWFDUWQRF HKW QH HZWHE KWLDI GRR* VHLWUDS HKW QHH ZWHE JQLODHG ULDI
GQD KWLDI GRRJ VHLOSPL WFDUWQR F \UHY(³ W& SS$ OO, G(1 UHWVHYO\6
WVUL)
JQLWLF Q WD WN'
HH6
Y RUHFL& IR NQD% WD1
\OEDQRVDHU RV RG WVXP \WUDS HKW WFDUWQRF HKW UHGQX VQRLWDJLOER VWL JQLVLFUH[H QL
QRLWHUFVLG KWLZ \WUDS D VWVHY WFDUWQRF D HUHKZ WDKW VHULXTHU GQD VWFDUWQRF QHWWLUZ OOD RW VHLOSSD WL QRLWFD WQHGQHSHGQL
QD URI VLVDE HKW PURI WRQ VHRG JQLODHG ULDI GQD KWLDI G RRJ IR WQDQHY RF GHLOSPL HKW HOLKZ WDKW VHXJUD RVOD IILWQLDO3
HPLW UHYR HWDXWFXOI WRQ VHRG GQD GH[LI VL GQD VWVRF \JUHQH
QRQ V¶WQDGQHIH' QR \OQR GHVDE VL UHGGD HKW WDKW QRLWUHVVD V¶I ILWQLDO3 QR GHVDE VL \URHKW HULWQH
VLK7 WD G, ´UHGGD HOEDQRVDHUQX QD JQLJUDKF PRUI GHWOXVHU HYDK \OQR GOXRF³²VHFLUS
HODVHORKZ GQD G(PR& QDKW UHKJLK VHFLUS HL²´VHFLUS HYLVVHF[H³ V¶WQDGQHIH' ´VHFLUS WHNUDP
JQL O LDYHUS \ O ODUHQHJ QRSX GHVDE II LWQLDO3 HJUDKF GLG WQDGQHIH' WQHW[H HKW R@W>³ RV GL ´\WLFLUWFHOH
O LDWHU HGLYRUS RW VUXFQL WQDGQHIH' WDKW VWVRF OODUHYR HKW IR VPUHW QL WQDFL ILQJLVQL HUD VWVRF
\ JUHQHQRQ HVHK@W>³ WDKW GQD WD GL ´VUHPRWVXF VWL RW HFLYUHV HGLYRUS RW VWVRF \JUHQHQRQ
@V¶WQDGQHIH' IR> OOD VWFHOIHU³ UHGGD HKW WDKW \ OQR VHJHOOD I ILWQLDO3 RV RG WRQ GLG WL WDKW HJHOOD RW
VO LDI WQLDOSPR& HKW UHGGD ´HOEDQRVDHU³ D HJUDKF RW GHULXTHU VL WQDGQHIH' IL QHYH UHYHZR+
HOEDQRVDHU
HUHZ VHJUDKF ZRKV RW UHL OSSXV VHULXTHU GQD HWL QLIHGQL VL ´UHL OSSXV HKW IR QRLWHUFVLG HKW QDKW
UHKWR VHFLUS JQLWXSPRF URI DOXPURI RQ VUHIIR³ GQD ´VHFLYUHV GQD VODLUHWDP VWL URI HJUDKF RW HFLUS
WDKZ JQL QLPUHWHG QL QRLWHUFVLG GHWFLUWVHUQX II LWQLDOS QL VWVHY³ WDKW PUHW WFDUWQRF WD G(1
FQ, EXO& VUHGOLX% SVR+ WQDWVHWRU3 ´VHJUDKF V¶II LWQLDOS IR VVHQHOEDQRVDHU HKW IR IRRUS
HULXTHU RW VD RV HFLUS RW WFHSVHU KWLZ HWLQL IHGQL³ \OWQHLFL IIXV VDZ ´VHJUDKF UDOXJHU V¶ODWLSVRK³ \DS
RW GHHUJD WQHLWDS KFLKZ QL WFDUWQRF HFLYUHV WDKW JQLGQLI WD G(1 SVR+ PH0 \URWFL9
JH HH6 WQHPHULXTHU ´VVHQHOEDQRVDHU³ D HVRSPL WUXRF HKW WDKW HULXTHU RW HWL QLIHGQL \OWQHLFL IIXV
HE RW VPUHW UDO L PLV GHWHUSUHWQL HYDK VWUXRF VLRQL OO, UHYHZR+
WD WN'
´QRLWHUFVLG
RW GHULXTHU VL \UHYRFVL@'> UHGGD HOEDQRVDHUQX QD JQLGXOFQL GQD VHFLUS WHNUDP JQL O LDYHUS
\ O ODUHQHJ QRSX GHVDE HFLUS HUXOLDI VWL PRUI GHWOXVHU HYDK GOXRF JQLFLUS HYLVVHF[H V¶WQDGQHIH'³
WD WN' HH6
VWLPGD HK VD HYLWDOXFHSV \ OHULWQH VL UHGGD \UDQRLWHUFVLG HKW RW HOEDWXELUWWD
VL HFQHUHIILG HFLUS VLKW WDKW QRLWUHVVD V¶I ILWQLDO3 VHFLUS HODVHORKZ GQD G(PR& QDKW UHWDHUJ HUHZ
VHFLUS HOEDLUDY ODQLI HKW WDKW P LDOF RW WSHF[H \ OEDQRVDHUQX UHGGD HKW JQL QLPUHWHG QL QRLWHUFVLG VWL
GHVLFUH[H WQDGQHIH' ZRK HJHOOD RW VO LDI WQLDOSPR& V¶IILWQLDO3 VHELUFVHG I ILWQLDO3 QDKW QRLWHUFVLG
UHGDRUE V¶WQDGQHIH' VWQDUJ WFDUWQRF HK7
GH [LI VL UHGGD HKW WDKW UR VWVRF GHWDOHU \JUHQHQRQ
¶VWQDGQHIH' QR \ OQR GHVDE VL UHGGD HKW WDKW GHJHOOD VWFDI HKW PRUI UHIQL WRQQDF WUXR& HK7
GH[LI WRQ \ OLUDVVHFHQ HURIHUHKW GQD ´\UDQRLWHUFVLG³
VL UHGGD HKW WDKW VHWDWV WFDUWQRF V¶I ILWQLDO3 UHYRHUR0 VWFDUWQRF WQHLOFODLWQHGLVHU V¶WQDGQHIH' RW
WQDYHOHU QHYH UR RWQL GHWDURSURFQL VL HJDXJQDO VLKW WDKW JQLUUHIQL URI VGQXRUJ RQ VHGLYRUS I ILWQLDO3
GQD WFDUWQRF ¶VHLWUDS HKW QL HUHKZRQ VUDHSSD VWQHL OF VVHQLVXE URI WVL ONFHK& GQD WFDUWQRF WQHLOF
ODSLFLQXP HKW QL HJDXJQDO ´UHGGD GH[L I³ HK7 WFDUWQRF WQHL OFVVHQLVXE UR WQHL OFODSLFLQXP
D WRQ WFDUWQRF UHPRWVXFODLWQHGLVHU D VHYORYQL P LDOF V¶II LWQLDO3 UHYHZRK \ OODUHQHJ HUR0 UHGGD
\ UDQRLWHUFVLG D RW GHVRSSR VD ´UHGG$ GH[L)³ D URI VHGLYRUS \ OWLFL OS[H WL VD WFDUWQRF ¶VHLWUDS HKW PRUI
H OEDKVLXJQLWVLG \ OUDHOF VL WFDUWQRF ODSLFLQXP HK7 WN' ´UHGGD GH[LI D RWQL GHSSDUZ³
VWVRF JQLVVXFVLG QL HOSPD[H URI ´UHGGD GH[L I³ D RW VHFQHUHIHU VHNDP KFLKZ VUHPRWVXF VVHQLVXE WD
GHPLD GQD WQDGQHIH' \E GHXVVL WVL ONFHK& WQHPQLDWQR& NVL5 D GQD WN' ´HFLYUH6
QRLWDUHQH* FLUWFHO( HGLYRUS RW VWVRF \JUHQHQRQ OOD WFHO IHU O ODKV KFLKZ GHUHYL OHG K:N KFDH QR
GHVVHVVD HJUDKF K:N UHS GH[L I D³ JQLQDHP VD GHQLIHG VL ´UHGG$ GH[L)³ HKW HUHKZ ´HJUDK& \JUHQ(
[ HGQ, HKW GQD UHGG$ GH[L)³ D IR GHVRSPRF ´HFLU3 [HGQ,³ QD URI VHGLYRUS WDKW WQHL OF ODSLFLQXP
D GQD WQDGQHIH' QHHZWHE WFDUWQRF D HVQRSVH5 VWL RW VWLELK[H VD GHKFDWWD VWQHPXFRG
RZW HUD GH[LI VL UHGGD HKW WDKW P LDOF VLKW URI VUHIIR WQDGQHIH' WURSSXV \OQR HKW WX%
RW WQHLFL IIXV HUD HYRED D QRLWFHV QL WUXR& HKW \E KWURI WHV \GDHUOD VQRVDHU HKW VVHOGUDJH5 HYL I
KSDUJDUDS WD WFDUWQRF HKW QL UHWDO GHVVHUGGD GQD UHWIDHUHKW GHJUDKF HWDU HOEDLUDY KWQRPRWKWQRP RW
\OSSD RVOD \HKW UHKWHKZ UDHOF WRQ WVDHO WD VL WL GQD PUH7 ODLWLQ, KWQRPHYOHZW HKW JQLUXG HOEDFLOSSD
HWDU GH[LI HKW RW \ OQR UHIHU HYRED GHWLF VD KSDUJDUDS QL KWURI WHV ´VPUH7 WQHP \D3 GQD JQL O OL%
JQLFLU3³ HKW WDKW RVOD VHWRQ WUXR& HK7 IOHVWL HFLUS ODXWFD HKW WRQ GQD VUHGLYRUS GHWDUHSR\OHWDYLUS
\ E \OWQHGQHSHGQL HL WHV HUD VHFLUS HKW KFLKZ QL GRKWHP HKW VHELUFVHG ´\ OHYLWLWHSPRF³ WDKW VL
QRLWDWHUSUHWQL HOEDQRVDHU WVRP HKW W[HWQRF QL GDHU QHK: ODQLJLUR QL VLVDKSPH WD WN'
QRLVVLPPR& HKW \E GHWDOXJHU WRQ HUD
GQD \OHYLWLWHSPRF WHV HUD \JUHQ( WFHUL' VD KFXV VUHLOSSXV FLUWFHOH IR VHFLUS HFLYUHV
ODUHQHJ FLUWFHO( VHJUDKF QR LVVL PVQDUW GQD HFLYUHV QRLWDUHQHJ FLUWFHOH VHGXOFQL
HFLUS VLK7 HYRED QRLWFH6 QL KWURI WHV VD PUH7 ODLWLQ, URI WHV VHFLUS HKW WD HFLYUHV
QRLWDUHQHJ FLUWFHOH UXR\ URI \JUHQ( WFHUL' \DS O OLZ XR\ PUH7 ODLWLQ, HKW JQLUX'
VHWDWV
WFDUWQRF HKW IR HHUKW KSDUJDUD3 VQDHP WFDUWQRF HKW QL GHVX VD ´\ OHYLWLWHSPRF³ WDKZ UDHOF WRQ VL
WL \ O ODQRLWLGG$ VHFLUS WHNUDP ´HYLWLWHSPRF³ HQLPUHWHG UHKWHJRW WDKW VWQDSLFLWUDS WHNUDP WQDYHOHU
HURP \ OEDXJUD GQD \WLURMDP HKW VHURQJL GQD WHNUDP \ OSSXV \WLFLUWFHOH HKW QL URWLWHSPRF HQR QR \OQR
VHVXFRI WQLDOSPR& HK7 VOLDI ´VHFLUS WHNUDP J QL OLDYHUS \ O ODUHQHJ³ JQLGUDJHU P LDOF VWL VD VQRVDHU
HPDV HKW URI VO LDI \ OHYLWLWHSPRF VHFLUS VWL WHV RW GHO LDI WQDGQHIH' WDKW QRLWDJHOOD V¶I ILWQLDO3
´\OHYLWLWHSPRF WHV VHFLUS HFLYUHV QRLWDUHQHJ FLUWFHO@H>³ HJUDKF RW HUXOLD) F
´VHWDU ¶VURWLWHSPRF VWL QDKW UHKJLK \ OODLWQDWVEXV HUHZ VHWDU³
GQD ´VDJ ODUXWDQ URI VHFLUS HYLWLWHSPRF WQDGQH IHG \DS RW GHWFHS[H \ OEDQRVDHU³ VUHPRWVXF HUHKZ
VHWDU HOEDQRVDHUQX GHJUDKF UHLOSSXV WDKW GHJH O OD \OWQHLFL IIXV II LWQLDOS
WD /:
QHOPD+ JQLWLF WD WN' I& VHWDU ¶VURWLWHSPRF VWL IR OOD RW QRVLUDSPRF QL HOEDQRVDHU
WRQ HUD VHWDU V¶WQDGQHIH' WDKW HJHOOD RW GHO LDI VDK QLDJD I ILWQLDO3 UHGGD HKW RW HOEDWXELUWWD
HUHZ WL IL QHYH WX%
GHGGD VLVDKSPH ´GHWWL PPRF WQDGQHIH' \WHLUSRUSP L KFLKZ HQLPUHWHG
WVXJX$ HWD'
HJGX- WFLUWVL' VHWDW6 GHWLQ8
O ODGQH. 0 DL QLJUL9 QR+
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
HFLGXMHUS KWLZ GHVVLPVLG VL WQLDOSPR& GHGQHP$ GQRFH6 V¶I ILWQLDO3
GHWQDUJ VL WN' VVL PVL' RW QRLWR0 ¶VWQDGQHIH' HYRED GHWDWV VQRVDHU HKW UR)
12,68/&12&
´\ OHYLWLWHSPRF³
VHFLUS WHV RW QRLWDJL OER \QD GHKFDHUE WQDGQHIH' HJHOOD RW VOLDI WQLDOSPR& HKW WDKW GQL I
]]>
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?
