Cover Page The handle

(1)

Cover Page

The handle http://hdl.handle.net/1887/19852 holds various files of this Leiden University dissertation.

Author: Bomhoff, Jacobus Adriaan

Title: Two discourses of balancing : the origins and meaning of "balancing" in 1950s and 1960s German and U.S. Constitutional Rights Discourse

Date: 2012-09-13

(2)

3$57,,,

*(1($/2*,(635,1&,3/($1'32/,&<

&+$37(5

%$/$1&,1*,1*(50$1)5(('202)(;35(66,21

-85,6358'(1&(

2)7+(/$7(6²($5/<6

52%(57$/(;<$7+(25<2)&2167,787,21$/5,*+767KH*HUPDQRULJLQDOSXUSRVHIXOO\

XVHVWKHORDGHGKLVWRULFDOWHUP¶%HJULIIVMXULVSUXGHQ]·DW

(3)

,1752'8&7,21723$57,,,

$LPVDQGVHWXSRIWKLV3DUW

7KLV &KDSWHU DQG WKH WKUHH &KDSWHUV WKDW IROORZ LW FRQWLQXH WKH SURMHFW RI

GLVFRYHULQJORFDOPHDQLQJVRIEDODQFLQJGLVFRXUVHLQ(XURSHDQGWKH86 WKURXJKWKH

FRQVWUXFWLRQ RI JHQHDORJLHV 6SHFLILFDOO\ WKH &KDSWHU FKDUWV WKH ULVH RI EDODQFLQJ DV D

SURPLQHQWIHDWXUHZLWKLQFRQVWLWXWLRQDOULJKWVDGMXGLFDWLRQLQ3RVW:DU*HUPDQ\DQGWKH

86 7KH DLP LV WR XQHDUWK WKH ´]XJUXQGH OLHJHQGH 9RUVWHOOXQJµWKH XQGHUO\LQJ JHQHUDO

LPDJHWKHSHUYDVLYHDVVRFLDWLRQVWKHDVSLUDWLRQVKHOGRXWIRUDQGFULWLTXHVUDLVHGDJDLQVW

EDODQFLQJE\MXGJHVSULPDULO\RIWKH%XQGHVYHUIDVVXQJVJHULFKW)HGHUDO&RQVWLWXWLRQDO&RXUW

)&&DQGRIWKH866XSUHPH&RXUWDQGE\FRPPXQLWLHVRIFRQVWLWXWLRQDOOHJDOVFKRODUV

DQGFRPPHQWDWRUVLQWKH86DQG*HUPDQ\

7KLV3DUWDSSURDFKHVWKHHODERUDWLRQRIWKHORFDOPHDQLQJRIEDODQFLQJGLVFRXUVH

WKURXJK D FDVH VWXG\ IRFXVVHG RQ IUHHGRP RI H[SUHVVLRQ DGMXGLFDWLRQ DQG WKHRU\

)UHHGRPRIH[SUHVVLRQJXDUDQWHHGE\DUWLFOHRIWKH%DVLF/DZWKH¶*UXQGJHVHW]·**

LQ*HUPDQ\DQGE\WKH)LUVW$PHQGPHQWWRWKH&RQVWLWXWLRQLQ WKH86RFFXSLHVD

XVHIXOO\FHQWUDOSRVLWLRQLQFRQVWLWXWLRQDOGLVFRXUVHLQERWKVHWWLQJV1RWRQO\GRHVWKLV

JXDUDQWHH OLH DW WKH KHDUW RI PDQ\ RI WKH PRVW SURPLQHQW GHEDWHV RQ WKH UROH RI

EDODQFLQJLQFRQVWLWXWLRQDODGMXGLFDWLRQGXULQJWKHILUVWGHFDGHVDIWHUWKH6HFRQG:RUOG

:DU LW LV DOVR GXULQJ WKDW VDPH SHULRG WKH IRFDO SRLQW IRU PDQ\ GLVFXVVLRQV DERXW

FRQVWLWXWLRQDOLQWHUSUHWDWLRQJHQHUDOO\

$VLQWKHSUHYLRXV3DUWWKHDLPRIWKLVLQVWDOPHQWRIWKHJHQHDORJLHVLVWRVKRZ

WKHIXQGDPHQWDOO\GLIIHUHQWPHDQLQJWKDWVLPLODUODQJXDJHKDVKDGLQ*HUPDQ\DQGLQWKH

867KURXJKRXWWKLV3DUWLWZLOOEHDUJXHGWKDWZKHUH$PHULFDQEDODQFLQJGLVFRXUVHLV

FKDUDFWHUL]HG E\ SHUYDVLYH DQWLQRPLHV HVSHFLDOO\ EHWZHHQ SUDJPDWLVP RU ¶SROLF\· DQG

SULQFLSOH EDODQFLQJ LQ WKH *HUPDQ FRQVWLWXWLRQDO ODQGVFDSH HPERGLHV RQH RI PRGHUQ

FRQVWLWXWLRQDOLVP·VPRVWLPSRUWDQWDQGVXFFHVVIXOHIIRUWVDWRYHUFRPLQJDQWLQRPLHV:KLOH

$PHULFDQ FRQVWLWXWLRQDO ODZ FRQWLQXRXVO\ GUDZV IXQGDPHQWDO GLVWLQFWLRQV EHWZHHQ

SUDJPDWLF DFWLRQ DQG UHDVRQHG GHOLEHUDWLRQ EHWZHHQ SROLF\ DQG SULQFLSOH DQG EHWZHHQ

WKH VXEVWDQWLYH DQG WKH IRUPDO DOZD\V UHOHJDWLQJEDODQFLQJ ILUPO\ WR RQH VLGH RI WKHVH

GLFKRWRPLHV *HUPDQ FRQVWLWXWLRQDO ODZ KDV PDQDJHG WR D ODUJH H[WHQW WR IXVH WKHVH

HOHPHQWV DGRSWLQJ EDODQFLQJ DV WKH PDLQ YHKLFOH WR FDVW WKH SUDJPDWLF DV UHDVRQHG

SROLF\DVSULQFLSOHDQGWKHVXEVWDQWLYHDVIRUPDO

7KH IROORZLQJ 6HFWLRQV RI WKLV ,QWURGXFWLRQ SUHVHQW WKH RXWOLQH RI WKH

FRPSDUDWLYH FDVH VWXG\ LQ PRUH GHWDLO 0DQ\ RI WKH JHQHUDO GLIILFXOWLHV WKDW IDFH D

FRPSDUDWLYH DQDO\VLV RI WKLV NLQG KDYH DOUHDG\ EHHQ GLVFXVVHG LQ &KDSWHU 7ZR

DGGLWLRQDOFRPSOLFDWLRQVKRZHYHUUHTXLUHVSHFLDODWWHQWLRQ

&I 3HWHU %DGXUD 9HUIDVVXQJ6WDDWXQG*HVHOOVFKDIWLQGHU6LFKWGHV%XQGHVYHUIDVVXQJVJHULFKWV ¶9HUIDVVXQJ6WDDW

XQG *HVHOOVFKDIW· LQ %81'(69(5)$6681*6*(5,&+7 81'*581'*(6(7=)(67*$%( $86$1/$ '(6

-b+5,*(1%(67(+(16 '(6%81'(69(5)$6681*6*(5,&+76 ,, &KULVWLDQ 6WDUFN HG ZLWK

UHJDUGWRWKHFRQVWLWXWLRQDVDZKROH

(4)

PRGHOVHWRXWLQ&KDSWHU&KDSWHUWKHQSUHVHQWVWZRVWUDQGVRIWKRXJKWWKDWPDNHXS

PXFK RI EDODQFLQJ·V ORFDO PHDQLQJ LQ *HUPDQ FRQVWLWXWLRQDO GLVFRXUVH WKRVH RI WKH

¶PDWHULDO· FRQVWLWXWLRQ 6HFWLRQ DQG RI WKH ¶FRPSUHKHQVLYH· FRQVWLWXWLRQDO RUGHU

6HFWLRQ

&KDSWHUVDQGIROORZDYHU\VLPLODUDSSURDFKIRUWKH86,QVXPPDU\IRUP

WKH\ SURFHHG DV IROORZV &KDSWHU SUHVHQWV WKH SHUWLQHQW ¶EDODQFLQJ RSLQLRQV· DQG

GLVWLQJXLVKHV DQG DQDO\VHV D QXPEHU RI LPSRUWDQW OLQHV RI DUJXPHQW LQ WKHLU UHFHSWLRQ

DPRQJMXGJHVDQGDFDGHPLFV&KDSWHUDJDLQGHYHORSVWZRPDLQWKHPHVWKDWDUHFHQWUDO

WR EDODQFLQJ·V 86 ORFDO PHDQLQJ 7KH\ DUH WKH FODVK EHWZHHQ LQVWUXPHQWDOLVP DV DQ

DSSURDFK WR XQGHUVWDQGLQJ DGMXGLFDWLRQ DQG FRPSHWLQJ SHUVSHFWLYHV DV WR WKH SURSHU

MXVWLILFDWLRQ RI MXGLFLDO GHFLVLRQV 6HFWLRQ DQG WKH SHUVLVWHQW UROH RI D ¶GHILQLWLRQDO

WUDGLWLRQ·LQ$PHULFDQOHJDOWKRXJKW

&RPSDULQJ EDODQFLQJ LQ 86 DQG *HUPDQ FRQVWLWXWLRQDO OHJDO GLVFRXUVH

RQIUHHGRPRIH[SUHVVLRQRIWKHODWHV²HDUO\V

7KHDGYHQWRIEDODQFLQJLQIUHHVSHHFKMXULVSUXGHQFH

,QWKHODWHVDQGHDUO\VERWKWKH*HUPDQ)&&DQGWKH 866XSUHPH

&RXUWDVZHOODVFRPPHQWDWRUVLQWKHLUWZRMXULVGLFWLRQVEHJDQWRXVHWKHODQJXDJHRI

EDODQFLQJ LQ DGMXGLFDWLRQ RI DQG FRPPHQWDU\ RQ FRQVWLWXWLRQDO ULJKWV FDVHV ,Q ERWK

V\VWHPVIUHHGRPRIH[SUHVVLRQZDVWKHILUVWDUHDLQZKLFKWKLVQHZODQJXDJHDSSHDUHG

,Q*HUPDQ\WKLVGHYHORSPHQWEHJDQDEUXSWO\DQGGHFLVLYHO\ZLWKWKH&RXUW·VXQDQLPRXV

/WK GHFLVLRQ,Q WKH 86 GLIIHUHQW -XVWLFHV RI WKH 6XSUHPH &RXUW JUDGXDOO\

VWDUWHGWRUHIHUWREDODQFLQJLQWKHLURSLQLRQVLQ)LUVW$PHQGPHQWFDVHVRIWKLVSHULRG

IURPDORQHFRQFXUUHQFHE\-XVWLFH)UDQNIXUWHULQWKHFDVHRI'HQQLVY8QLWHG6WDWHV

WRDILYH-XVWLFHPDMRULW\LQDQXPEHURIFDVHVEHWZHHQDQG

,W LV VWULNLQJ KRZ TXLFNO\ DQG KRZ FRPSOHWHO\ ¶EDODQFLQJ· FDPH WR GRPLQDWH

GLVFXVVLRQVRQIUHHGRPRIH[SUHVVLRQDGMXGLFDWLRQLQWKLVSHULRG²DSURFHVVWKDWZLOOEH

GHVFULEHGEHORZ$VDSUHOLPLQDU\PDWWHUKRZHYHULWLVLPSRUWDQWWRQRWHDQXPEHURI

FKDUDFWHULVWLFVWKDWWKHVHGHEDWHVVKDUHG

)LUVWMXGJHVDQGFRPPHQWDWRUVLQERWKV\VWHPVDSSDUHQWO\DSSURDFKHGWKHVH

GLVFXVVLRQVRQDZLGHO\VKDUHGXQGHUVWDQGLQJWKDWEDODQFLQJDFWXDOO\¶ZDVVRPHWKLQJ·7KDW

LVWKH\JHQHUDOO\VHHPWRKDYHKHOGWKHYLHZWKDWWKHODQJXDJHRIEDODQFLQJLQWKHVHIUHH

%YHUI*(>@)RU(QJOLVKGLVFXVVLRQVRI/WK·VLQIOXHQFHVHHHJ3HWHU(4XLQW)UHH6SHHFK

DQG3ULYDWH/DZLQ*HUPDQ&RQVWLWXWLRQDO7KHRU\0'/5(93HWHU(4XLQW$5HWXUQWR/WK

52*(5:,//,$068/5(9

866&%DUHQEODWWY8QLWHG6WDWHV86866&.RQLJVEHUJY6WDWH%DURI&DOLIRUQLD86

866&&RPPXQLVW3DUW\Y6XEYHUVLYH$FWLYLWLHV&RQWURO%RDUG86

,WLVLPSRUWDQWWRQRWHWKDW¶GRPLQDWHWKHGHEDWHV·LVQRWWKHVDPHDV¶GRPLQDWHIUHHGRPRIH[SUHVVLRQ

ODZ·7KHUHZDV²DQGVWLOOLV²DODUJHDPRXQWRIFRQWURYHUV\LQ86OHJDOOLWHUDWXUHRQZKHWKHU¶EDODQFLQJ·

ZDV HYHU DQ DGHTXDWH GHSLFWLRQ RI WKH 6XSUHPH &RXUW·V GRPLQDQW DSSURDFK WR IUHHGRP RI H[SUHVVLRQ

DGMXGLFDWLRQ6HHIXUWKHULQIUDV

)LUVW SDUW RI WKH DUJXPHQW GHYHORSHG KHUH LV WKDW LQ *HUPDQ\ WR D PXFK

JUHDWHUH[WHQWWKDQLQWKH86EDODQFLQJLQFRQVWLWXWLRQDOODZOLHVDWWKHFRQIOXHQFHRID

QXPEHU RI VWUDQGV LQ OHJDO WKRXJKW :KLOH EDODQFLQJ GLVFRXUVH LQ WKH 86 GXULQJ WKLV

SHULRG ZDV PRVW RIWHQ DQLPDWHG E\ SUDJPDWLF FRQFHUQV ² D EUHDNGRZQ LQ IDPLOLDU

FRQFHSWXDOFDWHJRULHVFRQIURQWDWLRQZLWKQHZW\SHVRIFDVHVHWFRUE\GRFWULQDOO\¶ORFDO·

FRQVLGHUDWLRQVVSHFLILFWRIUHHGRPRIH[SUHVVLRQODZLQ*HUPDQFRQVWLWXWLRQDOGLVFRXUVH

¶EDODQFLQJ· LV ZKHUH PDQ\ RI WKH PRVW LPSRUWDQW LGHDOV DQG SHUVSHFWLYHV UHOHYDQW QRW

RQO\WRIUHHGRPRIH[SUHVVLRQEXWDOVRWRWKHQDWXUHRIFRQVWLWXWLRQDOULJKWVWKHWDVNRI

FRXUWV DQG WKH FRQVWLWXWLRQ DV D ZKROH FDPH WRJHWKHU %DODQFLQJ LQ *HUPDQ

FRQVWLWXWLRQDOODZLVZKHUHPDQ\VWUDQGVRIOHJDODQGFRQVWLWXWLRQDOWKRXJKWLQWHUVHFW

7KLVGLIIHUHQFHSUHVHQWVREYLRXVGLIILFXOWLHVIRUFRPSDULVRQVRIWKHWZRV\VWHPV

:KHUHDV IRU WKH 86 D GLVFXVVLRQ RI IUHH VSHHFK FDVH ODZ DQG FRPPHQWDU\ PD\ EH

ODUJHO\VXIILFLHQWWRSUHVHQWDUHSUHVHQWDWLYHSLFWXUHRIEDODQFLQJ·VORFDOPHDQLQJVXFKD

VHOHFWLYH DSSURDFK ZLOO OLNHO\ QRW EH DGHTXDWH IRU WKH *HUPDQ VLWXDWLRQ ZKHUH

XQGHUVWDQGLQJEDODQFLQJDVSUHGRPLQDQWO\DIUHHVSHHFKODZSKHQRPHQRQZRXOGSUHVHQW

DGLVWRUWHGSLFWXUH7KHDSSURDFKFKRVHQKHUHZLOOEHWRIROORZDVPXFKDVSRVVLEOHWKH

UHOHYDQWGHEDWHVDQGWKHLUFRQWH[WV(YHU\HIIRUWZLOOEHPDGHWRSUHVHQWEDODQFLQJDVLW

ZDVGLVFXVVHG²ZKHWKHUDVSDUWRIIUHHVSHHFKODZFRQVWLWXWLRQDOULJKWVODZFRQVWLWXWLRQDO

ODZJHQHUDOO\RUHYHQ¶ODZ·DVDZKROH%XWLWLVLPSRUWDQWWRQRWHDWWKHRXWVHWWKDWWKH

SUHFLVHQDWXUHRIWKHVHDVVRFLDWLRQVLVQRWDOZD\VFOHDUIURPWKHUHOHYDQWWH[WV²DQGPD\

QRWKDYHEHHQFOHDUWRWKHDXWKRUVLQYROYHG

6HFRQGO\LWVHHPVWKDWLQ*HUPDQ\DJDLQWRDPXFKJUHDWHUH[WHQWWKDQLQ

WKH 86 DQ LPSRUWDQW SRVWKRF UDWLRQDOL]DWLRQ HIIRUW KDV WDNHQ SODFH LQ SDUWLFXODU

LQYROYLQJ WKH FRQFHSW RI SURSRUWLRQDOLW\ WR UHIUDPH WKH PHDQLQJ RI EDODQFLQJ 7KLV

GRPLQDQW UDWLRQDOL]LQJ SHUVSHFWLYH PDNHV UHFDSWXULQJ WKH RULJLQDO VLJQLILFDQFH RI

EDODQFLQJGLVFRXUVHDQGXQHDUWKLQJLWV¶EULFRODJH·OLNHRULJLQVPRUHGLIILFXOWIRU*HUPDQ\

WKDQ IRU WKH 86 ZKHUH KLVWRULFDO RULJLQV UHPDLQ PXFK PRUH UHOHYDQW WR FXUUHQW

SUDFWLFHV $JDLQ WKH DLP ZLOO EH WR FDSWXUH RULJLQDO PHDQLQJV UDWKHU WKDQ ODWHU

LQWHUSUHWDWLRQV 7KH JUHDW PDMRULW\ RI WKH VRXUFHV XVHG WKHUHIRUH ZLOO EH GUDZQ IURP

FRQWHPSRUDU\PDWHULDO

7KLV3DUWFRQVLVWVRIIRXU&KDSWHUVWZRHDFKGHYRWHGWR*HUPDQ\DQGWKH86

$IWHUDFRPPRQ,QWURGXFWLRQIRUWKHZKROHRI3DUW,,,WKHUHPDLQGHURIWKLV6HFWLRQ

&KDSWHU ILUVW SUHVHQWV DQ RYHUYLHZ RI WKH SRVW:DU GHYHORSPHQW RI *HUPDQ IUHH

VSHHFK MXULVSUXGHQFH 6HFWLRQ :KLOH WKLV RYHUYLHZ FRQVFLRXVO\ DGRSWV WKH OHQV RI

EDODQFLQJ GLVFRXUVH WR IUDPH UHOHYDQW GHYHORSPHQWV LW ZLOO DOVR SUHVHQW WKH DUJXPHQW

WKDWFRQWHPSRUDU\SDUWLFLSDQWVWKHPVHOYHVFDPHWRYLHZIUHHVSHHFKFDVHODZ²DQGLQ

IDFWPXFKRIFRQVWLWXWLRQDOODZJHQHUDOO\²IURPWKLVVSHFLILFSHUVSHFWLYH0RYLQJIURP

WKH )HGHUDO &RQVWLWXWLRQDO &RXUW·V SURQRXQFHPHQWV WR DFDGHPLF OLWHUDWXUH 6HFWLRQ

GLVWLOV D QXPEHU RI LPSRUWDQW OLQHV RI FULWLTXH RI WKH )&&·V EDODQFLQJ ODQJXDJH LQ LWV

VHPLQDO GHFLVLRQV EHJLQQLQJ ZLWK WKH /WK FDVH 7KLV 6HFWLRQ GHYHORSV DQ

DVVHVVPHQWRIWKH&RXUW·VEDODQFLQJGLVFRXUVHRQWKHEDVLFRIORFDOFULWHULDIROORZLQJWKH

$VDQQRXQFHGVXSUDV

(5)

)RXQGDWLRQV7KH)LUVW$PHQGPHQWDQG$UW%DVLF/DZ

7KH WH[WXDO IRXQGDWLRQV IRU WKH SURWHFWLRQ RI H[SUHVVLRQ LQ WKH 86 DQG LQ

*HUPDQ\DUHDWRQFHKLJKO\VLPLODUDQGXWWHUO\GLIIHUHQW7KH)LUVW$PHQGPHQWWRWKH

86 &RQVWLWXWLRQ RQ LWV IDFH IDPRXVO\ DSSHDUV WR IRUELG DQ\ NLQG RI OLPLWDWLRQ RI WKH

IUHHGRPWRVSHDNSURYLGLQJ

´&RQJUHVVVKDOOPDNHQRODZDEULGJLQJWKHIUHHGRPRIVSHHFKµ

$UW**RQWKHRWKHUKDQGLQLWVSDUDJUDSKZRXOGVHHPWRDOORZYLUWXDOO\DQ\

NLQGRIOLPLWDWLRQSURYLGLQJ

´ (YHU\RQH KDV WKH ULJKW WR IUHHO\ H[SUHVV DQG GLVVHPLQDWH KLV RSLQLRQ 7KH

IUHHGRP RI WKH SUHVV DQG WKH IUHHGRP RI UHSRUWLQJ WKURXJK UDGLR DQG ILOP DUH

JXDUDQWHHGµ

´7KHVHULJKWVILQGWKHLUOLPLWVLQWKHUXOHVRIWKHJHQHUDOODZVWKHVWDWXWRU\SURYLVLRQV

IRUWKHSURWHFWLRQRI\RXWKDQGLQWKHULJKWWRSHUVRQDOKRQRXUµ

,Q D VHQVH WKHQ ERWK SURYLVLRQV DUH ZRUGHG LQ DEVROXWH WHUPV 7KH )LUVW

$PHQGPHQW RQ LWV IDFH SURYLGLQJ IRU XQTXDOLILHG SURWHFWLRQ DQG $UW DOORZLQJ

XQTXDOLILHGO\IRUOLPLWDWLRQE\ZD\RI¶JHQHUDOODZV·LQDGGLWLRQWROLPLWDWLRQVVSHFLILFDOO\

IRUWKHSURWHFWLRQRI\RXWKDQGSHUVRQDOKRQRXU6RZKLOHWKHDUW**GRHVH[SOLFLWO\

SURYLGHIRUWKHSRVVLELOLW\RIOLPLWDWLRQRIWKHULJKWDQGPHQWLRQWZRVSHFLILFOLPLWDWLRQ

JURXQGV\RXWKDQG¶SHUVRQDOKRQRXU·WRLQWHUSUHWWKHSURYLVLRQDVVHHPLQJWRSURYLGH

´DVHWRIVFDOHVµDQGWKHUHE\QHFHVVLWDWLQJVRPHNLQGRIZHLJKLQJSURFHVVFOHDUO\UHDGV

PRUH LQWR WKH WH[W WKDQ LV ZDUUDQWHG 7KH *HUPDQ DQG 86 SURYLVLRQV DUH LQ IDFW

¶VLPLODURSSRVLWHV·LQWKHLUDSSDUHQWDEVROXWHQHVV

7KLVVLPLODULW\LQWKHWH[WXDOEDFNJURXQGVWRIUHHGRPRIH[SUHVVLRQDGMXGLFDWLRQ

KDV D SDUWLFXODU UHOHYDQFH IRU WKH VWXG\ RI WKH GHYHORSPHQW RI EDODQFLQJ 0RVW

LPSRUWDQWO\QHLWKHUWKH86QRUWKH*HUPDQJXDUDQWHHRIIHUVDFOHDUWH[WXDOEDVLVIRUDQ

H[SOLFLW ZHLJKLQJ RI FRPSHWLQJ YDOXHV RU LQWHUHVWV 1HLWKHU SURYLVLRQ LQ IDFW RIIHUV DQ

LQGLFDWLRQ RI DQ\NLQGRIUHODWLRQVKLSRUFRPSDULVRQDWDOO ZKHWKHU H[SUHVVHG LQ WHUPV RI

EDODQFLQJRURWKHUZLVHEHWZHHQWKHQDWXUHRUYDOXHRIH[SUHVVLRQRQWKHRQHKDQGDQG

WKHQDWXUHRUYDOXHRILWVOLPLWDWLRQVRQWKHRWKHU1HLWKHUZRUGLQJRQLWVIDFHVXJJHVWV

5HPDUNLQJ RQ WKH DSSDUHQWO\ H[FHHGLQJO\ ZHDN ZRUGLQJ RI $UW %DVLF /DZ IURP DQ $PHULFDQ

SHUVSHFWLYH+HUEHUW%HUQVWHLQ)UHH3UHVVDQG1DWLRQDO6HFXULW\5HIOHFWLRQVRQWKH6SLHJHO&DVH$0-&203 /II

7UDQVODWLRQ LQ '21$/'3.200(567+(&2167,787,21$/-85,6358'(1&( 2) 7+()('(5$/

5(38%/,&2)*(50$1<

2Q WKH GLIIHUHQFH VHHHJ 0$57,1.5,(/(7+(25,('(55(&+76*(:,1181* ,Q WKH

UHPDLQGHU RI WKLV VWXG\ WKH VSHFLILF OLPLWDWLRQV ¶IRU WKH SURWHFWLRQ RI \RXWK· DQG WKH ¶ULJKW WR SHUVRQDO

KRQRXU·ZLOOQRWEHH[DPLQHG7KLVLVLQFRQIRUPLW\ZLWKPRVW*HUPDQGLVFXVVLRQVRI$UW%DVLF/DZ

ZKLFKPDNHDFOHDUGLVWLQFWLRQEHWZHHQWKHGLIIHUHQWOLPLWDWLRQJURXQGVRIWKH¶JHQHUDOODZV·RQWKHRQH

KDQGDQGWKHSURWHFWLRQRI\RXWKDQGKRQRXURQWKHRWKHU

.200(56

VSHHFKRSLQLRQVEXWODWHUDOVRLQRWKHUFRQWH[WVUHIHUUHGWRDGLVFUHWHDQGLQVRPHZD\

FRKHUHQWVHWRISUDFWLFHVDQGLGHDVWKDWFRXOGFRJHQWO\EHGLVFXVVHGDQGFRQWUDVWHGZLWK

DOWHUQDWLYHV 7KLV FDQ EH VHHQ IURP PDQLIROG UHIHUHQFHV WR EDODQFLQJ DV D ¶PHWKRG· RU

¶DSSURDFK· WKDW FRXOG EH ¶XVHG· RU ¶HPSOR\HG· ,W FDQ DOVR EH JOHDQHG IURP WKH PDQ\

UHIHUHQFHVWREDODQFLQJDVDQHZSKHQRPHQRQLQ)&&DQG6XSUHPH&RXUWDGMXGLFDWLRQ

7KHVH FRXUWV· EDODQFLQJ ODQJXDJH ZDV JHQHUDOO\ WDNHQ WR UHSUHVHQW WKH LQFLGHQFH RI

SUDFWLFHV DQG LGHDV ZLWKLQ FRQVWLWXWLRQDO DGMXGLFDWLRQ WKDW KDG QRW EHHQ SUHVHQW LQ WKH

VDPH ZD\ DW HDUOLHU WLPHV 2I FRXUVH WKH QDWXUH RI WKHVH SUDFWLFHV DQG LGHDV DQG

WKHUHIRUH WKH SUHFLVH PHDQLQJ RI EDODQFLQJ ODQJXDJH ZDV WKH REMHFW RI VWURQJ

GLVDJUHHPHQW

6HFRQGO\PRVWRIWKHVHVDPHMXGJHVDQGFRPPHQWDWRUVDSSDUHQWO\EHOLHYHG

WKDW GLIIHUHQW SRVLWLRQV RQ WKH XVH RI EDODQFLQJ PDWWHUHG LQ RQH RU PRUH ZD\V)RU

PDQ\WKHXVHRIEDODQFLQJODQJXDJHFRUUHODWHGVLJQLILFDQWO\ZLWKRXWFRPHVLQFRQFUHWH

FDVHV)RURWKHUVWKHPDLQUHOHYDQFHRIYLHZVRQEDODQFLQJOD\EH\RQGWKHRXWFRPHRI

VSHFLILFFDVHVDQGFRXOGEHGLVFXVVHGHYHQLQWKHIDFHRIVXEVWDQWLYHDJUHHPHQWRQWKHVH

RXWFRPHV$JDLQWKHH[WHQWWRZKLFKWKHXVHRIEDODQFLQJSURYRNHGRXWFRPHVRUKDG

ZLGHUUHYHUEHUDWLRQVZHUHLPSRUWDQWLVVXHVIRUGHEDWHEXWWKDWWKHUHZDVVRPHUHOHYDQFH

WRGLVFXVVLQJEDODQFLQJVHHPHGWREHODUJHO\EH\RQGGRXEW

)LQDOO\ QRW RQO\ FRXOG EDODQFLQJ EH GLVFXVVHG FRJHQWO\ DQG PHDQLQJIXOO\

GHEDWHVRQEDODQFLQJTXLFNO\EHFDPHIRFDOSRLQWVIRUDZKROHUDQJHRIFRQWURYHUVLHVZLWK

UHJDUGWRIUHHGRPRIH[SUHVVLRQFRQVWLWXWLRQDOLQWHUSUHWDWLRQJHQHUDOO\RUHYHQWKHWDVN

RIFRXUWVLQGHPRFUDFLHV,QERWKVHWWLQJVSDUWLFXODUWDNHVRQEDODQFLQJUDSLGO\EHFDPH

DVVRFLDWHG ZLWK VSHFLILF YLHZV RQ D QXPEHU RI RWKHU WRSLFV &RQYHUVHO\ SRVLWLRQV RQ

RWKHULVVXHVZHUHJLYHQWKHLUGLVFUHWHFRUUHODWHVZLWKUHJDUGWREDODQFLQJ7KLVPHDQWWKDW

EHIRUH ORQJ FRQWURYHUVLHV RQ LVVXHV IDU UHPRYHG IURP WKH GHWDLOV RI SDUWLFXODU

VXEVWDQWLYH DUHDV RI ODZ ZHUH EHLQJ IRXJKW RXW LQ WKH ODQJXDJH RI EDODQFLQJ $JDLQ

KRZHYHU WKH ZD\V LQ ZKLFK YLHZV RQ EDODQFLQJ FDPH WR EH DVVRFLDWHG ZLWK EURDGHU

SRVLWLRQV LQ FRQVWLWXWLRQDO ODZ VHHPV WR KDYH GLIIHUHG DV EHWZHHQ WKH WZR V\VWHPV

'HWDLOLQJWKHVHYDULRXVFRQQHFWLRQVZLOOEHRQHRIWKHPDLQWDVNVIRUWKH&KDSWHUVLQWKLV

3DUW

(J /DXUHQW % )UDQW] 7KH)LUVW$PHQGPHQWLQWKH%DODQFH <$/(/- ´7KH RQH

WKLQJ ZKLFK DSSHDUV WR HPHUJH ZLWK UHDVRQDEOH FODULW\ LV WKDW ¶EDODQFLQJ· KDV EHFRPH WKH FHQWUDO ILUVW

DPHQGPHQWLVVXHµ

(6)

SRVLWLRQ ZLWKLQ FRQVWLWXWLRQDO LPDJLQDWLRQ LQ *HUPDQ\ DV LW GRHV LQ WKH 86 WKH ULJKW

QRQHWKHOHVV LV FHQWUDO WR ERWK FRQVWLWXWLRQDO RUGHUV7KLV FHQWUDOLW\ PHDQV WKDW WKH

LVVXHVUHOHYDQWWRIUHHGRPRIH[SUHVVLRQFDVHVDUHOLNHO\WREHDWOHDVWWRVRPHH[WHQW

UHSUHVHQWDWLYHIRUWKHLVVXHVIDFLQJFRQVWLWXWLRQDOULJKWVDGMXGLFDWLRQPRUHJHQHUDOO\$V

8OULFK6FKHXQHUSXWLWDIHZ\HDUVDIWHUWKH/WKGHFLVLRQ´$UW**IKUWPLWWHQKLQHLQLQ

*UXQGIUDJHQ GHU 9HUIDVVXQJVLQWHUSUHWDWLRQµ6WXG\LQJ IUHHGRP RI H[SUHVVLRQ JXDUDQWHHV

WKHUHIRUHPHDQVFRQIURQWLQJFHQWUDOGLOHPPDVRIFRQVWLWXWLRQDOLQWHUSUHWDWLRQ

E7KH¶FRPSDUDELOLW\·RIIUHHGRPRIH[SUHVVLRQ

6HFRQGIUHHGRPRIH[SUHVVLRQLVDSDUWLFXODUO\VXLWDEOHDUHDIRUFRPSDULVRQRI

WKHQDWXUHRIIXQGDPHQWDOULJKWVSURWHFWLRQEHWZHHQFRQVWLWXWLRQDORUGHUV0RVWRWKHU

ULJKWV FRPPRQO\ JXDUDQWHHG LQ FRQVWLWXWLRQV VXFK DV IUHHGRP RI UHOLJLRQ SULYDF\ RU

FHUWDLQ VRFLDO ULJKWV GHSHQG WR D PXFK JUHDWHU H[WHQW RQ GLYHUJHQW SKLORVRSKLFDO

IRXQGDWLRQVRUORFDOLQVWLWXWLRQDODUUDQJHPHQWV*HUPDQVSD\WD[HVWKDWJRGLUHFWO\WRD

UDQJH RI UHOLJLRXV LQVWLWXWLRQV IRU H[DPSOH DQ LQVWLWXWLRQDO DUUDQJHPHQW WKDW ZRXOG EH

LQFRQFHLYDEOH XQGHU WKH (VWDEOLVKPHQW &ODXVH RI WKH )LUVW $PHQGPHQW LQ WKH 86

(GZDUG(EHUOHKDVVKRZQWKDWFRQVWLWXWLRQDOSURWHFWLRQRISULYDF\LVLQVSLUHGPRUHE\

FRQVLGHUDWLRQVRI¶GLJQLW\·LQ*HUPDQ\DQGE\FRQFHUQVIRU¶IUHHGRP·LQWKH867KH

¶6R]LDOVWDDW·GLPHQVLRQSOD\VDUROHLQ*HUPDQFRQVWLWXWLRQDOMXULVSUXGHQFHWKDWLVXWWHUO\

GLIIHUHQWIURPDQ\WKLQJVHHQLQ86FRQVWLWXWLRQDODUUDQJHPHQWV)UHHGRPRIH[SUHVVLRQ

E\ FRQWUDVW LV JURXQGHG RQ PXFK PRUH VLPLODU SKLORVRSKLFDO DQG EURDGHU QRUPDWLYH

IRXQGDWLRQVLQWKHWZRV\VWHPV,WZLOOEHVHHQEHORZWKDWDWKRURXJKO\FRPSDUDEOHVHWRI

WUDGLWLRQDODUJXPHQWVVXSSRUWVSURWHFWLQJIUHHGRPRIH[SUHVVLRQLQ*HUPDQ\DQGLQWKH

86 ,W LV WUXH WKDW SDUWLFXODU FRQFHSWLRQV RI IUHHGRP RI H[SUHVVLRQ PD\ GHPDQG

H[WHQVLYHFRQWURORYHULQVWLWXWLRQDOVHWXSVWKLQN RIWKHSURWHFWLRQRIPHGLDSOXUDOLVP

ZKLFKLVDFRQVWLWXWLRQDOWDVNIRUJRYHUQPHQWLQVRPHFRXQWULHVHJ*HUPDQ\LQZD\V

XQIDPLOLDULQRWKHUVHJWKH86%XWHYHQZKHUHVXFKFRQFHSWLRQVDUHSUHYDOHQWODUJH

DUHDVUHPDLQLQZKLFKWKHJXDUDQWHHRIIUHHGRPRIH[SUHVVLRQLVDQHVVHQWLDOO\QHJDWLYH

ULJKWIRFXVHGRQWKHDEVHQFHRILQWHUIHUHQFHE\SXEOLFRUSULYDWHDFWRUV2QWKHZKROH

WKHUHIRUH LW VHHPV WKDW IUHHGRP RI H[SUHVVLRQ LV RQH RI WKH PRUH ¶FRPSDUDEOH·

FRQVWLWXWLRQDOULJKWV

,Q WKH /WK FDVH WKH )&& DOVR IRXQG WKDW IUHHGRP RI H[SUHVVLRQ ZDV ´DEVROXWHO\ IRXQGDWLRQDOµ ²

´VFKOHFKWKLQNRQVWLWXLHUHQGµ²IRUOLEHUDOGHPRFUDWLFFRQVWLWXWLRQDORUGHUV,ELG

8OULFK 6FKHXQHU 3UHVVHIUHLKHLW 99'675/ ´$UW %DVLF /DZ OHDGV XV GLUHFWO\ LQWR

IRXQGDWLRQDO LVVXHV RI FRQVWLWXWLRQDO LQWHUSUHWDWLRQµ $UW ** IHDWXUHV SURPLQHQWO\ LQ PDQ\

FRPPHQWDULHVRQFRQVWLWXWLRQDOLQWHUSUHWDWLRQ6HHHJ3(7(5+b%(5/(',(:(6(16*(+$/7*$5$17,(

'(6$57$%6*581'*(6(7=II

&I521$/'.52726=<16.,7+(),567$0(1'0(17,1&5266&8/785$/3(563(&7,9([LY

(':$5'-(%(5/(',*1,7< $1')5(('20&2167,787,21$/9,6,216 ,1*(50$1< $1' 7+(

81,7('67$7(6

WKDWVSHHFKPD\RQO\EHOLPLWHGLQIDYRXURIJRDOVRIDFHUWDLQZHLJKWRULPSRUWDQFHRU

WKDW D SDUWLFXODU H[SUHVVLRQ LWVHOI QHHGV WR DWWDLQ D FHUWDLQ ZRUWK EHIRUH LW FDQ WUXPS

FRPSHWLQJOHJLVODWLYHJRDOV7KHWH[WRIWKH)LUVW$PHQGPHQWGRHVQRWVD\´DEULGJHLI\RX

PXVWEXWWU\WRNHHSLWUHDVRQDEOHµDQGDOLWHUDOUHDGLQJRIDUWLFOH**GRHVQRWPDNH

SURWHFWLRQRIH[SUHVVLRQGHSHQGHQWRQ´DEDODQFLQJFRPSDULVRQµ²´DEZlJHQGHQ9HUJOHLFKµ

EHWZHHQWKHIXQGDPHQWDOULJKWDQGRWKHUUHOHYDQWYDOXHVRULQWHUHVWV

7KHLQWHUHVWLQJDVSHFWRIWKLVWH[WXDOFRPSDULVRQLVQRWWKHIDFWWKDWVRPHIRUP

RI TXDOLILFDWLRQ RU OLPLWDWLRQ RI WKH ² VHHPLQJO\ XQOLPLWHG ULJKW WR IUHHGRP RI

H[SUHVVLRQ RFFXUUHG LQ WKH 86 DQG WKDW VRPH TXDOLILFDWLRQ RU OLPLWDWLRQ ZDV LPSRVHG

XSRQWKH²VHHPLQJO\XQOLPLWHGUHVWULFWLQJFODXVHRIWKH´DOOJHPHLQH*HVHW]HµLQ*HUPDQ\

1HLWKHUXQTXDOLILHGSURWHFWLRQRIH[SUHVVLRQQRUXQTXDOLILHGDEULGJHPHQWRIH[SUHVVLRQ

LVWHQDEOHRQDQ\JHQHUDOO\DFFHSWHGWKHRU\RIIUHHGRPRIH[SUHVVLRQ6RPHGHJUHHRI

FLUFXPVFULSWLRQ RU TXDOLILFDWLRQ ZDV LQHYLWDEOH IRU WKH IRXQGDWLRQDO SURYLVLRQV LQ ERWK

V\VWHPV:KDWPDNHVWKHFRPSDULVRQVDOLHQWLVWKDWLQWKHVHSURFHVVHVRIOLPLWDWLRQYHU\

VLPLODU ODQJXDJH FDPH WR EH XVHG WKH ODQJXDJH RI EDODQFLQJ 7KLV OLQJXLVWLF VLPLODULW\

UDLVHV WKH TXHVWLRQ RI WR ZKDW H[WHQW DFWRUV LQ WKH WZR V\VWHPV XVHG WKLV ODQJXDJH WR

FRQYH\VLPLODUWKLQJV

)UHHGRPRIH[SUHVVLRQDGMXGLFDWLRQDVDFDVHVWXG\

7KHGRPDLQRIIUHHGRPRIH[SUHVVLRQKDVDQXPEHURIFKDUDFWHULVWLFVWKDWUHQGHU

LW HVSHFLDOO\ VXLWDEOH IRU D FRPSDUDWLYH FDVH VWXG\ LQWR WKH GHYHORSPHQW RI EDODQFLQJ

GLVFRXUVH LQ FRQVWLWXWLRQDO ULJKWV DGMXGLFDWLRQ LQ *HUPDQ\ DQG WKH 86 7KH PRVW

LPSRUWDQWRIWKHVHDWWULEXWHVDUHGLVFXVVHGEULHIO\LQWKLV6HFWLRQ

D7KHFHQWUDOLW\RIIUHHGRPRIH[SUHVVLRQ

)LUVW IUHHGRP RI H[SUHVVLRQ LV ODUJHO\ UHSUHVHQWDWLYH IRU ULJKWV DGMXGLFDWLRQ

SUDFWLFHDQGWKHRU\JHQHUDOO\EHFDXVHRIWKHFHQWUDOSRVLWLRQ WKHJXDUDQWHHRFFXSLHVLQ

ERWK V\VWHPV )UHHGRP RI H[SUHVVLRQ LV ORFDOO\ SHUFHLYHG WR EH DPRQJ WKH PRVW

VLJQLILFDQWDQGWKHUHIRUHPRVWWKRURXJKO\DQDO\VHGULJKWVLQERWKWKH*HUPDQDQGWKH

86FRQVWLWXWLRQDORUGHUV2QHWHOOLQJVLJQRILWVSULPHSRVLWLRQFDQEHIRXQGLQWKH/WK

GHFLVLRQ ZKHUH WKH *HUPDQ )&& LQYRNHG %HQMDPLQ &DUGR]R·V FKDUDFWHULVDWLRQ RI

IUHHGRPRIVSHHFKDV´WKHPDWUL[WKHLQGLVSHQVDEOHFRQGLWLRQRIQHDUO\HYHU\RWKHUIRUP

RIIUHHGRPµWRKROGXSLWVRZQIUHHVSHHFKJXDUDQWHHDV´LQJHZLVVHP6LQQGLH*UXQGODJH

MHGHU)UHLKHLWµ:KLOHIUHHGRPRIH[SUHVVLRQPD\QRWRFFXS\WKHDEVROXWHO\SDUDPRXQW

)UDQW]7KH)LUVW$PHQGPHQWLQWKH%DODQFH

+DQV + .OHLQ gIIHQWOLFKH XQG SULYDWH )UHLKHLW =XU $XVOHJXQJ GHV *UXQGUHFKWV GHU 0HLQXQJVIUHLKHLW '(5

67$$7

&I.5,(/(

%9HUI*(>@´LQDFHUWDLQVHQVHWKHIRXQGDWLRQIRUDOOIUHHGRPµ

(7)

G)UHHGRPRIH[SUHVVLRQDQGEDODQFLQJ

)LQDOO\ HYHQ PRUH GLUHFWO\ UHODWHG WR WKH WRSLF RI WKLV VWXG\ IUHHGRP RI

H[SUHVVLRQ LV DJDLQ LQ ERWK VHWWLQJV ODUJHO\ UHSUHVHQWDWLYH IRU GLVFXVVLRQV DERXW

EDODQFLQJVSHFLILFDOO\DQGIRUGHEDWHVRQWKHFRQQHFWLRQVEHWZHHQEDODQFLQJDQGEURDGHU

WKHPHVRIFRQVWLWXWLRQDOLVPDQG FRQVWLWXWLRQDODGMXGLFDWLRQLQSDUWLFXODU$VPHQWLRQHG

DERYHIUHHGRPRIH[SUHVVLRQZDVWKHILUVWDUHDRIFRQVWLWXWLRQDOODZLQZKLFKEDODQFLQJ

GLVFRXUVH FDPH WR WKH IRUH 0RUH LPSRUWDQWO\ KRZHYHU LW ZDV DOVR WKH DUHD LQ ZKLFK

GHEDWHVRQWKHXVHRIEDODQFLQJEHFDPHPRVWLQWHQVH6RIRUH[DPSOH&KDUOHV)ULHGLQDQ

HDUO\FRPPHQWDU\RQEDODQFLQJLQ866XSUHPH&RXUWFDVHODZZURWH´LWLVSDUWLFXODUO\

LQUHVSHFWWRFODLPVLQYROYLQJFRQVWLWXWLRQDOSURWHFWLRQVRIIUHHGRPRIVSHHFK«WKDW

FRQWURYHUV\DERXWWKHDSSURSULDWHQHVVRISURFHHGLQJE\D¶EDODQFLQJRIWKHLQWHUHVWV·KDV

EHHQPRVWKHDWHGDQGPRVWLQQHHGRIDQDO\VLVµ)RUVRPHZKDWGLIIHUHQWUHDVRQVWKH

VDPHLVWUXHIRU*HUPDQ\7KHUHWKHEDODQFLQJDSSURDFKVHWRXWE\WKH)&&LQWKH/WK

FDVH TXLFNO\ EHFDPH D PRGHO IRU DGMXGLFDWLRQ RQ RWKHU FRQVWLWXWLRQDO ULJKWV DV ZHOO 7KHIDFWWKDWWKLVDSSURDFKRULJLQDWHGLQDIUHHGRPRIH[SUHVVLRQFDVHDVVXUHGWKLVDUHD

RIWKHIRFXVRIVFKRODUO\DWWHQWLRQWREDODQFLQJ

7KHLQWHOOHFWXDOKLVWRU\RI86*HUPDQFRPSDULVRQV

LQSDUWLFXODULQWKHDUHDRIIUHHGRPRIH[SUHVVLRQ

$VWKHSUHYLRXV&KDSWHULOOXVWUDWHGWKHSUH:DUSHULRGVDZDZLGHVSUHDGLQWHUHVW

DPRQJ$PHULFDQZULWHUVLQ(XURSHDQOHJDOVFKRODUVKLS7KHZRUNRI$PHULFDQVFKRODUV

OLNH5RVFRH3RXQGLVVWXGGHGZLWKUHIHUHQFHVWRWKHZULWLQJVRIDZLGHUDQJHRI*HUPDQ

DQG )UHQFK DXWKRUV RQ OHJDO PHWKRG DQG OHJDO WKHRU\7KLV FXUUHQW RI LGHDV IURP

(XURSHWRWKH86FRQWLQXHGWKURXJKRXWWKHVDQGPXFKRIWKHVIDFLOLWDWHG

GXULQJPRVWRIWKLVSHULRGE\WKHPDQ\pPLJUpSURIHVVRUVIURP*HUPDQ\ZKRWRRNXS

SRVLWLRQVDWYDULRXV$PHULFDQODZVFKRROVDIWHU

%\WKHODWHVZKHQWKLV&KDSWHUWDNHVXSWKHVWRU\RIEDODQFLQJWKHSRVLWLRQ

KDG FKDQJHG PDUNHGO\ 7KH GRPLQDQW IORZ RI LGHDV QRZ FOHDUO\ ZHQW WKH RWKHU ZD\

0DQ\RIWKH pPLJUpSURIHVVRUVKDGE\QRZUHWLUHGOHDYLQJ$PHULFDQDXGLHQFHVZLWKRXW

WKHLUSULPDU\VRXUFHRILQWURGXFWLRQDQGWUDQVODWLRQ,QDGGLWLRQDOWKRXJKLWLVGLIILFXOWWR

ILQGH[SOLFLWH[SUHVVLRQVRIWKLVLGHDLWLVSRVVLEOHWKDW*HUPDQODZDQGOHJDOWKHRU\ZHUH

VHHQDVKDYLQJEHHQ¶WDLQWHG·E\WKHH[SHULHQFHVRIIDVFLVPDQG1D]LVP2QWKH*HUPDQ

VLGHKRZHYHUWKHVDQGVUHYHDODODUJHQXPEHURIHIIRUWVWRORRNDWWKH86

WKH´0XWWHUDOOHUMXGL]LHOOHQ9HIDVVXQJVV\VWHPHµIRULQVSLUDWLRQLQZRUNLQJRXWWKHGHWDLOVRI

&KDUOHV )ULHG 7ZR&RQFHSWVRI,QWHUHVWV6RPH5HIOHFWLRQVRQWKH6XSUHPH&RXUW·V%DODQFLQJ7HVW +$59/ 5(9

&I%(51+$5'6&+/,1.$%:b*81*,09(5)$6681*65(&+7II

7KRXJKWKHUHDUHQRWPDQ\UHIHUHQFHVWR,QWHUHVVHQMXULVSUXGHQ]VFKRODUVVSHFLILFDOO\6HHVXSUDV

.5,(/(´WKHPRWKHURIDOOV\VWHPVRIFRQVWLWXWLRQDODGMXGLFDWLRQµ

F7KH¶QRYHOW\·RIIUHHGRPRIH[SUHVVLRQ

7KLUGFRPLQJFORVHUWRWKHVSHFLILFWRSLFRIWKLVVWXG\WKHUHLVDVHQVHLQZKLFK

FRQVWLWXWLRQDOULJKWVDGMXGLFDWLRQVSHFLILFDOO\RIWKHODWHVDQGHDUO\VHVSHFLDOO\

RQ IUHHGRP RI H[SUHVVLRQ LV D SDUWLFXODUO\ VXLWDEOH WRSLF IRU FRPSDULVRQ EHWZHHQ WKH

86DQG*HUPDQ\,QERWKV\VWHPVFRXUWVDQGFRPPHQWDWRUVRIWKHWLPHZHUHXQGHUDQ

DFXWHLPSUHVVLRQWKDWWKH\ZHUHGHDOLQJZLWKSUREOHPVWKDWZHUHWRDODUJHH[WHQWQHZWR

FRQVWLWXWLRQDOODZ,Q*HUPDQ\RQHUHDVRQIRUWKLVXQGHUVWDQGLQJZDVWKDWFRQVWLWXWLRQDO

ULJKWVKDGSOD\HGRQO\DPDUJLQDOUROHLQSUH:DUDGMXGLFDWLRQ7KHUHIRUHHYHQWKRXJK

$UW%DVLF/DZWRRNPRVWRILWVZRUGLQJIURPWKHFRUUHVSRQGLQJDUWLFOHLQWKH:HLPDU

FRQVWLWXWLRQPRVWTXHVWLRQVRQWKHLQWHUSUHWDWLRQRIWKHUHOHYDQWWHUPVZHUHLQIDFWQHZ

WR FRXUWV,Q DGGLWLRQ SRVW :DU *HUPDQ VRFLHW\ DQG LWV FRQVWLWXWLRQDO DUUDQJHPHQWV

SUHVHQWHGDODUJHQXPEHURIJHQXLQHO\QHZTXHVWLRQVJHQHUDOO\RQWKHSODFHRILQGLYLGXDO

GLJQLW\ DQG WKH RWKHU IXQGDPHQWDO ULJKWV LQ WKH %DVLF /DZ RQ WKH VRFLDO VWDWH RQ

SOXUDOLVPHWF´6LQFHWKH%RQQ&RQVWLWXWLRQµ$GROI$UQGWZURWHLQ´ZHDUHIDFHG

ZLWK FRQIOLFWV EHWZHHQ QRUPV WKDW FDQQRW EH GHDOW ZLWK WKURXJK WKH WUDGLWLRQDO MXULVWLF

WHFKQLTXHVµ7KH86&RQVWLWXWLRQ·V)LUVW$PHQGPHQWZDVREYLRXVO\PXFKROGHUWKDQ

DQ\ FRPSDUDEOH *HUPDQ SURYLVLRQ %XW HYHQ LQ WKH 86 IUHHGRP RI H[SUHVVLRQ

DGMXGLFDWLRQVWDUWHGRQO\LQHDUQHVWGXULQJDQGHVSHFLDOO\LPPHGLDWHO\DIWHUWKH)LUVW

:RUOG :DU$QG WKHUH WRR D SHUYDVLYH IHHOLQJ ZDV WKDW FRXUWV DIWHU WKH VHFRQG ZDU

ZHUH IDFHG ZLWK SUREOHPV WKDW KDG QRW WURXEOHG WKHLU SUHGHFHVVRUV 7KH MXGJHV RI WKH

HDUOLHVW)LUVW$PHQGPHQWFDVHV+DUU\.DOYHQZURWHLQKDGKDGLW´PXFKHDVLHUµ

WKDQ WKRVH RI WKH V DQG V´7KH\ ZHUH QRW DVNHG WR WHVW FODVVLF QRWLRQV RI

IUHHGRP RI VSHHFK DJDLQVW JURXS GHIDPDWLRQ ODERU SLFNHWLQJ REVFHQLW\ FRQJUHVVLRQDO

FRPPLWWHHVVRXQGWUXFNVSXEOLFLVVXHSLFNHWLQJVLWLQVRUWKDWODUJHDUUD\RIGLUHFWDQG

LQGLUHFW VDQFWLRQV LPSRVHG XSRQ WKH GRPHVWLF &RPPXQLVW PRYHPHQWµ$V DQRWKHU

FRQWHPSRUDU\FRPPHQWDWRUSXWLW´WKHEDVLFWKHRU\XQGHUO\LQJWKHOHJDOIUDPHZRUN>RI

VSHHFKSURWHFWLRQ@KDVUHPDLQHGVXEVWDQWLDOO\XQFKDQJHGVLQFHLWVGHYHORSPHQW«EXW

WKHFRQGLWLRQVXQGHUZKLFKLWPXVWQRZEHDSSOLHGKDYHJUHDWO\DOWHUHGµ

7KHFRQQHFWLRQVWR:HLPDUHUDWKLQNLQJRQIUHHGRPRIH[SUHVVLRQDUHGLVFXVVHGLQGHWDLOLQIUDV

$GROI$UQGW=XU*WHUDEZlJXQJEHL*UXQGUHFKWHQ1-:´6HLWGHP%RQQHU*UXQGJHVHW]

«NRPPWHV]X1RUPHQNROOLVLRQHQGLHVLFKPLWGHQKHUN|PPOLFKHQ0LWWHOQQLFKWO|VHQODVVHQµ

&I:LOOLDP-%UHQQDQ7KH6XSUHPH&RXUWDQGWKH0HLNOHMRKQ,QWHUSUHWDWLRQRIWKH)LUVW$PHQGPHQW+$59 /5(9 II 7+20$6,(0(562172:$5'6 $*(1(5$/7+(25< 2) 7+(),567

$0(1'0(17 *(2))5(<6721(3(5,/2867,0(6 )RU D FRQWHPSRUDU\ *HUPDQ

UHIHUHQFHWRWKHQRYHOW\RIWKHFDVHVRIWKH:RUOG:DU2QHSHULRGVHH.5,(/(

+DUU\.DOYHQ8SRQ5HUHDGLQJ0U-XVWLFH%ODFNRQWKH)LUVW$PHQGPHQW8&/$/5(9 ´&RQWHPSRUDU\ IUHH VSHHFK LVVXHV DUH VWULNLQJO\ GLIIHUHQW IURP WKRVH WKDW IDFHG +ROPHV DQG %UDQGHLV

&KDIHHDQG0HLNOHMRKQµ6HHDOVR+$55<.$/9(1$:257+<75$',7,21-DPLH.DOYHQHGDW

[LYLQWKH(GLWRU·V,QWURGXFWLRQ

,ELG

7+20$6,(0(56217+(6<67(02))5(('202)(;35(66,216HHDOVR .DOYHQ (GLWRU·V

,QWURGXFWLRQ[YQRWLQJWKDWDVRIPRUHWKDQRIDOO)$GHFLVLRQVGDWHGIURPDIWHU

(8)

LGHDV DQG SUDFWLFHV REVHUYHG LQ WKH SUHYLRXV &KDSWHU KRZHYHU DOVR LQGLFDWHV WKDW LW

PLJKWEHZRUWKZKLOHWRVHHZKHWKHUWKH%XQGHVYHUIDVVXQJVJHULFKWDQG866XSUHPH&RXUW

DQGWKHLUUHVSHFWLYHFRPPHQWDWRUVGLGLQIDFWPHDQWKHVDPHWKLQJZKHQWKH\VSRNHRI

EDODQFLQJ7KDWLQWXUQZRXOGEHDILUVWVWHSLQPDNLQJWKLVSURMHFWUHOHYDQW

WKH QHZ FRQVWLWXWLRQDO RUGHU RI WKH %DVLF /DZ2QH RI WKH WRSLFV *HUPDQ VFKRODUV

VKRZHGSDUWLFXODULQWHUHVWLQZDV$PHULFDQIUHHGRPRIH[SUHVVLRQODZ1RWRQO\ZHUH

LQGLYLGXDO 6XSUHPH &RXUW GHFLVLRQV RQ IUHH VSHHFK FRPPHQWHG XSRQ LQ *HUPDQ

MRXUQDOV*HUPDQDXWKRUVDOVRZHUHLQWLPDWHO\IDPLOLDUZLWKWKHPDLQJHQHUDOGRFWULQDO

FRQVWUXFWVWKDWIHDWXUHGLQ)LUVW$PHQGPHQWODZVXFKDVWKH´EDGWHQGHQF\WHVWµWKH

´SUHIHUUHGIUHHGRPVGRFWULQHµDQGHVSHFLDOO\WKH´FOHDUDQGSUHVHQWGDQJHUWHVWµ´FOHDU

DQGSUHVHQWGDQJHU.ODXVHOµRU²´)RUPHOµ

:LWKLQ WKLV JHQHUDO WRSLF RI IUHHGRP RI H[SUHVVLRQ *HUPDQ DXWKRUV ZHUH

HVSHFLDOO\ LQWHUHVWHG LQ WKH XVH RI EDODQFLQJ E\ WKH 6XSUHPH &RXUW LQ LWV )LUVW

$PHQGPHQW GHFLVLRQV 7DNH IRU H[DPSOH WKH OHFWXUHV E\ 8OULFK 6FKHXQHU DQG 5RPDQ

6FKQXU RQ IUHHGRP RI WKH SUHVV DW WKH $QQXDO $VVHPEO\ RI WKH $VVRFLDWLRQ RI

*HUPDQ &RQVWLWXWLRQDO /DZ 6FKRODUV WZR OHFWXUHV WKDW ZLOO EH GLVFXVVHG H[WHQVLYHO\

EHORZ:KHQGLVFXVVLQJWKH)&&·V¶QHZ·DSSURDFKRI´:HUWDEZlJXQJµ²´EDODQFLQJRI

YDOXHVµ LQ WKH /WK GHFLVLRQ 6FKHXQHU LV TXLFN WR SRLQW RXW WKDW ´WKLV PHWKRG RI

EDODQFLQJ«LVDOVRXVHGLQ$PHULFDµUHIHUULQJWREDODQFLQJUHIHUHQFHVLQRSLQLRQVE\

-XVWLFHV)UDQNIXUWHUDQG'RXJODV,QDVHFRQGFRQWULEXWLRQ5RPDQ6FKQXUDFULWLFRI

WKH%XQGHVYHUIDVVXQJVJHULFKW·VDSSURDFKWR$UWH[SUHVVHVEHZLOGHUPHQWDWWKHIDFWWKDWWKH

86 6XSUHPH &RXUW ZRXOG JLYH XS LWV ´E\ QRZ VXIILFLHQWO\ FRQFUHWL]HG FOHDUDQG

SUHVHQWGDQJHU WHVW LQ IDYRXU RI D EDODQFLQJ RI LQWHUHVWV WKDW FDQ EH PDQLSXODWHG DW

ZLOOµ5HIHUHQFHVVXFKDVWKHVHVKRZFOHDUO\WKDWGXULQJWKLVSHULRGWKHSUHYDOHQWYLHZ

DPRQJ *HUPDQ VFKRODUV ZRUNLQJ LQ WKH DUHD ZDV WKDW EDODQFLQJ ODQJXDJH LQ 86

FRQVWLWXWLRQDO ODZ DQG EDODQFLQJ ODQJXDJH LQ WKH GHFLVLRQV RI WKH )&& UHIHUUHG WR YHU\

VLPLODULIQRWEDVLFDOO\LGHQWLFDOSUDFWLFHVDQGLGHDV7KLVREVHUYDWLRQLVDQH[WHQVLRQWR

RQHPDGHLQWKHSUHYLRXV&KDSWHUWKDWFRPSDUDWLVWVVHL]HGRQVLPLODULWLHVLQWKHODQJXDJH

RI EDODQFLQJ LQ WKH ZRUN RI WKH ,QWHUHVVHQMXULVSUXGHQ]VFKRODUV DQG WKH 6RFLRORJLFDO

-XULVSUXGHVLQWKHVWRFODLPWKDWWKHVHVFKRROVWRRZHUHVXEVWDQWLDOO\DOLNH

7KHVHFODLPVDUHUHOHYDQWWRERWKWKHIHDVLELOLW\DQGWKHUHOHYDQFHRIWKHSURMHFW

XQGHUWDNHQKHUH7KHGXUDEOHFRQYLFWLRQWKDWVLPLODULWLHVLQEDODQFLQJODQJXDJHVWRRGIRU

VLPLODULWLHVLQXQGHUO\LQJSUDFWLFHVDQGLGHDVSURYLGHVDVXSSRUWLYHSUHFHGHQWIRUWKHLGHD

WKDW WKH GLVFRXUVH RI EDODQFLQJ LV VXIILFLHQWO\ FRKHVLYH WR VHUYH DV DQ REMHFW RI

FRPSDUDWLYHLQTXLU\7KDWZRXOGPDNHWKHSURMHFWXQGHUWDNHQKHUHIHDVLEOH7KDWVDPH

SHUVLVWHQWIRFXVRQVLPLODULWLHVFRXSOHGZLWKWKHGLIIHUHQFHVEHWZHHQ*HUPDQDQG86

6HHHJ&KULVWLDQYRQ3HVWDOR]]D.ULWLVFKH%HPHUNXQJHQ]X0HWKRGHQXQG3ULQ]LSLHQGHU*UXQGUHFKWVDXVOHJXQJ

LQGHU%XQGHVUHSXEOLN'HXWVFKODQG'(567$$7H[WHQVLYHUHIHUHQFHVWR86OLWHUDWXUHDQGFDVH

ODZ3(7(5/(5&+(h%(50$81'9(5)$6681*65(&+7IQLGHP

(J5LFKDUG6FKPLG(LQ1HXHV.RPPXQLVWHQ8UWHLOGHV6XSUHPH&RXUW-=

(J5LGGHULQ1,33(5'(<6&+(81(5,,

(J/(5&+(

3XEOLVKHGLQ99'675/

6FKHXQHU3UHVVHIUHLKHLW´>'LHVH0HWKRGHGHU$EZlJXQJ@ILQGHWDXFKLPDPHUNDQLVFKHQ*HEUDXFKµ

5RPDQ 6FKQXU 3UHVVHIUHLKHLW 99'6W5/ ´GLH 3UHLVJDEH GHU LQ]ZLVFKHQ KLQUHLFKHQG

NRQNUHWLVLHUWHQFOHDUDQGSUHVHQWGDQJHU)RUPHO]XJXQVWHQGHUEHOLHELJPDQLSXOLHUEDUHQ)RUPHOYRQGHUEDODQFHRILQWHUHVWVµ

6HHDOVRDWIQ´hEHUJDQJ]XU,QWHUHVVHQDEZlJXQJµ%XWVHH+lEHUOHIQRQ¶FOHDUDQGSUHVHQW

GDQJHU·DVDEDODQFLQJWHVW

(J+b%(5/(IQ´'LH$QZHQGXQJGHV*UXQGVDW]HVGHU*WHUDEZlJXQJLVWNHLQH%HVRQGHUKHLW

GHUGHXWVFKHQ9HUIDVVXQJVDXVOHJXQJ,QGHU6FKZHL]XQGLQGHQ86$ZHUGHQ,QKDOWXQG*UHQ]HQGHU*UXQGUHFKWHGXUFK

*WHUDEZlJXQJHUPLWWHOWµ

(9)

ZRXOG FRPSOLFDWH HIIRUWV WR UHEXLOG UHODWLRQV EHWZHHQ &KULVWLDQV DQG -HZV D FDXVH KH

KLPVHOI ZDV SDUWLFXODUO\ FORVHO\ LQYROYHG LQ 7KH SURGXFHU DQG GLVWULEXWRU RI +DUODQ·V

QHZ ILOP EURXJKW DQ DFWLRQ DJDLQVW /WK RQ WKH EDVLV RI DUW RI WKH &LYLO &RGH

FODLPLQJWKDWKLVFDOOIRUDER\FRWWZDVDWRUWLRXVDFW²DQ´XQHUODXEWH+DQGOXQJµ7KHFLYLO

ODZFRXUWVIRXQGDJDLQVW/WKDQGRUGHUHGKLPWRUHIUDLQIURPSURPRWLQJDQ\IXUWKHU

ER\FRWW RI +DUODQ·V ILOP /WK WKHQ ILOHG D ´9HUIDVVXQJVEHVFKZHUGHµ ² DQ LQGLYLGXDO

FRQVWLWXWLRQDOFRPSODLQW²ZLWKWKH)&&

7KH &RXUW EHJDQ E\ QRWLQJ WKDW ´ZLWKRXW D GRXEW WKH SULPDU\ SXUSRVH RI WKH

EDVLFULJKWVLVWRVDIHJXDUGWKHVSKHUHRIIUHHGRPRIWKHLQGLYLGXDODJDLQVWLQWHUIHUHQFHV

E\ SXEOLF DXWKRULWLHVµ $W WKH VDPH WLPH KRZHYHU LW KDG WR EH UHFRJQL]HG WKDW ´WKH

&RQVWLWXWLRQ ZKLFK GRHV QRW ZDQW WR EH D YDOXHQHXWUDO RUGHU KDV LQ LWV 3DUW RQ

)XQGDPHQWDO5LJKWVHUHFWHGDQREMHFWLYHYDOXHRUGHUµ´7KLVYDOXHV\VWHPDWWKHFRUHRI

ZKLFKLVWKHGLJQLW\RIWKHSHUVRQDOLW\RIWKHLQGLYLGXDOGHYHORSLQJIUHHO\ZLWKLQWKHVRFLDO

FRPPXQLW\KDVWREHXQGHUVWRRGDVDIRXQGDWLRQDOFRQVWLWXWLRQDOGHFLVLRQIRUDOODUHDV

RIODZµ7KLVPHDQWWKDWWKHRUGLQDU\FRXUWVZRXOGKDYHWRWHVWLQHDFKFDVHZKHWKHUWKH

DSSOLFDEOHUXOHVRISULYDWHODZDUHLQIOXHQFHGE\FRQVWLWXWLRQDOFRQFHUQV

)LQGLQJ IUHHGRP RI H[SUHVVLRQ ´LPPHGLDWHO\ FRQVWLWXWLYHµ² ¶VFKOHFKWKLQ

NRQVWLWXLHUHQG· ² IRU D OLEHUDOGHPRFUDWLF FRQVWLWXWLRQDO RUGHU WKH &RXUW LQVLVWHG WKDW

OLPLWDWLRQV WR WKLV IUHHGRP LQ WKH IRUP RI WKH ¶DOOJHPHLQH*HVHW]H· PHQWLRQHG LQ DUW

VKRXOGEHLQWHUSUHWHGLQVXFKDZD\DVWRJXDUDQWHHWKDWWKH´VSHFLDOYDOXHµ²´EHVRQGHUH

:HUWJHKDOWµRIWKHULJKWUHPDLQHGLQWDFW7KHZD\WRDFKLHYHWKLVZDVWRXQGHUVWDQGWKH

¶JHQHUDOODZV·DQGWKHIUHHGRPRIH[SUHVVLRQDVPXWXDOO\OLPLWLQJDQGFRQVWLWXWLYHRIHDFK

RWKHU·V PHDQLQJ ² D´:HFKVHOZLUNXQJµ ² D GLDOHFWLF EHWZHHQ ULJKWDQG OLPLWDWLRQV 7KH

&RXUWFRQFOXGHGWKDW´LWKDVWREHµZLWKLQLWVFRPSHWHQFHWRXSKROGWKHVSHFLILFYDOXHRI

WKLVULJKWYLVjYLVDOOSXEOLFDXWKRULWLHVLQFOXGLQJWKHRUGLQDU\FRXUWV´LQRUGHUWRDFKLHYH

WKHHTXLOLEUDWLRQWKDWWKHFRQVWLWXWLRQGHVLUHVµ²´GHQYHUIDVVXQJVUHFKWOLFKJHZROOOWHQ$XVJOHLFKµ

EHWZHHQWKHRSSRVLQJWHQGHQFLHVRIWKHEDVLFULJKWDQGWKHOLPLWLQJ¶JHQHUDOODZV·7KLV

EURXJKWWKH)&&WRWKHIROORZLQJLQWHUSUHWDWLRQRIWKHVFRSHRIIUHHGRPRIH[SUHVVLRQ

´WKHH[SUHVVLRQRIRSLQLRQVLVDVVXFKWKDWLVLQWKHLUSXUHO\LQWHOOHFWXDOHIIHFWIUHHLI

KRZHYHU>WKLVH[SUHVVLRQYLRODWHV@WKHDQRWKHULQGLYLGXDO·VULJKWVWKHSURWHFWLRQRIZKLFK

GHVHUYHV SUHFHGHQFH RYHU WKH SURWHFWLRQ RI WKH IUHHGRP RI H[SUHVVLRQ WKHQ WKLV

LQWHUIHUHQFHZLOOQRWEHDOORZHGVLPSO\EHFDXVHLWZDVFRPPLWWHGWKURXJKWKHH[SUHVVLRQ

RIDQRSLQLRQ$EDODQFLQJRIYDOXHV²¶*WHUDEZlJXQJ·²EHFRPHVQHFHVVDU\WKHULJKWWR

WKHH[SUHVVLRQRIRSLQLRQVPXVWUHFHGHZKHQLWLQIULQJHVSURWHFWLRQZRUWK\LQWHUHVWVRI

DQRWKHURIDKLJKHUUDQN:KHWKHUVXFKRYHUEHDULQJLQWHUHVWVRIDQRWKHUDUHSUHVHQWLV

WREHGHWHUPLQHGRQWKHEDVLVRIDOOWKHFLUFXPVWDQFHVRIWKHFDVHµ

7KH&RXUWIRXQGWKDWIUHHGRPRIH[SUHVVLRQZLOOKDYHWREH´ZHLJKHGHVSHFLDOO\

KHDYLO\µZKHQHQJDJHGLQ´QRWIRUWKHSXUSRVHRIDSULYDWHGLVSXWHEXWLQWKHILUVWSODFH

DVDFRQWULEXWLRQWRWKHIRUPDWLRQRISXEOLFRSLQLRQµ,QFRQFOXVLRQ

7UDQVODWHGLQ(%(5/(

%9HUI*(>@

%$/$1&,1* ,1 7+( ($5/< )5(('20 2) (;35(66,21 &$6(

/$:2)7+(%81'(69(5)$6681*6*(5,&+7

¶%DODQFLQJ·LQ%XQGHVYHUIDVVXQJVJHULFKWGHFLVLRQV²FD

7KH PDLQ HOHPHQWV RI *HUPDQ IUHH VSHHFK MXULVSUXGHQFH FDQ EH IRXQG LQ

GHFLVLRQVRIWKH)&&IURPDSHULRGRIOHVVWKDQWZRGHFDGHVEHWZHHQWKH/WKGHFLVLRQ

DQG VRPHZKDW PRUH DUELWUDULO\ WKH GHFLVLRQ LQ WKH 'HXWVFKODQG 0DJD]LQ FDVH

/HDGLQJ FDVHV IURP WKLV SHULRG FRYHU VXFK GLYHUVH VLWXDWLRQV DV FODLPV LQ WRUW

EHWZHHQ LQGLYLGXDOV FODLPV DJDLQVW WKH PHGLD IRU LQWUXVLRQ LQ SULYDWH OLYHV DQG

FRPSODLQWVDJDLQVWSROLFHLQWHUIHUHQFHLQWKHPHGLD7KHWKHPHVWKH&RXUWZDVDVNHGWR

GHDOZLWKFRQFHUQHGVRPHRIWKHPRVWSROLWLFDOO\FRQWHQWLRXVLVVXHVRIWKHGD\LQFOXGLQJ

WKHFRXQWU\·V1D]LSDVWUHODWLRQVWRWKH''5DQGPLOLWDU\SUHSDUHGQHVVLQWKHFRQWH[WRI

WKH&ROG:DU

)URP/WKWR'HU6SLHJHO

7KHGHYHORSPHQWRIDJHQHUDO¶EDODQFLQJ·GLVFRXUVH

D/WK

´(VZLUGGHVKDOEHLQH¶*WHUDEZlJXQJ·HUIRUGHUOLFKµ

%HIRUHWKH)&&KDGHYHQKDQGHGGRZQLWVRSLQLRQLQWKHFDVH/WKZDVDOUHDG\

VHWWREHFRPHDWRXFKVWRQHRI*HUPDQFRQVWLWXWLRQDOODZ)RUWKHILUVWWLPHXQGHUWKH

&RQVWLWXWLRQWKH&RXUWZDVDVNHGWRUXOHRQWKHVFRSHRIWKHULJKWWRIUHHGRPRI

H[SUHVVLRQ,QDGGLWLRQWKH&RXUWZDVDOVRIRUWKHILUVWWLPHIDFHGVTXDUHO\ZLWKWKH

LVVXHRIWKHH[WHQWWRZKLFKFRQVWLWXWLRQDOULJKWVKDGDQLQIOXHQFHRQSULYDWHODZUHODWLRQV

WKHYH[LQJTXHVWLRQRI´'ULWWZLUNXQJµRUWKLUGSDUW\HIIHFW7KHDFWXDORSLQLRQDGGHG

IXUWKHU QRYHOWLHV WKH &RXUW SURFODLPHG WKH LGHD WKDW WKH &RQVWLWXWLRQ HPERGLHG DQ

´REMHFWLYH YDOXH RUGHUµ HPSKDVL]HG WKH VRFLDO GLPHQVLRQ LQ LQGLYLGXDO FRQVWLWXWLRQDO

ULJKWV DQG LQWURGXFHG WKH FRQFHSW RI ´:HUWDEZlJXQJµ ² EDODQFLQJ RI YDOXHV WR VROYH

FODVKHV EHWZHHQ FRPSHWLQJ FRQVWLWXWLRQDO JRRGV ,W LV RI FRXUVH WKLV ODVW HOHPHQW WKLV

WKHVLV LV SDUWLFXODUO\ LQWHUHVWHG LQ EXW WKH DQDO\VLV EHORZ ZLOO VKRZ WKDW WKH &RXUW·V

EDODQFLQJODQJXDJHFDQKDUGO\EHXQGHUVWRRGLQLVRODWLRQIURPWKHVHRWKHUIDFHWVRIWKH

/WKRSLQLRQ

,Q(ULFK/WKDWWKHWLPH&KDLUPDQRIWKH3XEOLFDWLRQV2IILFHRIWKH&LW\

RI+DPEXUJJDYHDOHFWXUHEHIRUHPHPEHUVRI*HUPDQ\·VPRWLRQSLFWXUHLQGXVWU\,Q

KLVOHFWXUH/WKFDOOHGIRUDER\FRWWRIDQHZILOPE\9HLW+DUODQDILOPGLUHFWRUZKR

GXULQJ WKH IDVFLVWHUD KDG SURGXFHG D VWURQJO\ DQWLVHPLWLF ILOP -XG 6VV /WK ZDV

DIUDLGWKDW+DUODQ·VUHHPHUJHQFHDVDGLUHFWRUZRXOGVWDLQ*HUPDQ\·VLPDJHDEURDGDQG

´$EDODQFLQJRIYDOXHVWKHUHIRUHEHFRPHVQHFHVVDU\µ%9HUI*(>@

&I+HU]RJLQ0$81='h5,*+(5=2*6&+2/=QU

(10)

VLGHRIWKHWHQDQWWKH&RXUWORRNHGDWWKHEDFNJURXQGWRWKHH[SUHVVLRQ¶QRWSURPSWHG

EXW RXW RI RZQ YROLWLRQ· DW LWV IRUP ¶XQFRQYHQWLRQDO· DQG DW WKH SRVVLEOH HIIHFWV RI

UHVWUDLQW ¶QRW VXEVWDQWLDO·$ GHFLVLYH IDFWRU LQ IDYRXU RI WKH ODQGORUG WKH &RXUW

IRXQGZDVWKDWKHKDGDFWHGQRWWRSURWHFWKLVRZQ´IRUPDOSRZHUVDVDQRZQHUµEXW

LQWKHLQWHUHVWRISURWHFWLQJGRPHVWLFSHDFHEHWZHHQWKHWHQDQWV

7KH 6FKPLG6SLHJHO FDVH FRQFHUQHG D URZ IRXJKW RXW LQ SXEOLF EHWZHHQ D MXGJH

DQG WKH MRXUQDO 'HU 6SLHJHO LQ ZKLFK WKH MRXUQDO DFFXVHG WKH MXGJH RI KDUERXULQJ

FRPPXQLVW V\PSDWKLHV DQG WKH MXGJH FRXQWHUHG E\ OLNHQLQJ 'HU 6SLHJHO·V SROLWLFDO

UHSRUWLQJWRSRUQRJUDSK\:KHQFRQYLFWHGRIGHIDPDWLRQLQWKHORZHUFRXUWVWKHMXGJH

ILOHGDFRQVWLWXWLRQDOFRPSODLQW7KH%XQGHVYHUIDVVXQJVJHULFKWIRXQGWKDWWKHFULPLQDOFRXUWV

KDGIRFXVHGH[FOXVLYHO\RQWKHLQWHUHVWVRIWKHMRXUQDODQGLWVHGLWRUVDQGKDGQHJOHFWHG

WR WDNH LQWR DFFRXQW WKH ¶LPPDQHQW YDOXH· RI WKH H[SUHVVLRQ RI RSLQLRQ 7KURXJK WKLV

QHJOHFWWKH\KDGYLRODWHGWKH´YDOXHMXGJPHQWµ²´:HUWHQWVFKHLGXQJµ²LQFRUSRUDWHGLQDUW

**

$OWKRXJKWKHVHGHFLVLRQVGLGQRWUHSHDW/WK·VJHQHUDOVWDWHPHQWVRQWKHQHHGIRU

EDODQFLQJ WKHLU UHIHUHQFHV WR WKH HDUOLHU GHFLVLRQ WKH RYHUDOO WRQH RI WKHLU ODQJXDJH ²

´:HUWHQWVFKHLGXQJµ ´*WHUDEZlJXQJµ ´*HZLFKWµ ²FRXSOHG ZLWK DQ DSSURDFK H[SOLFLWO\

IRFXVHGRQFODVKHVEHWZHHQRSSRVLQJYDOXHVDQGLQWHUHVWVFRQWULEXWHGWRDSHUFHSWLRQ

WKDW/WK·V´EDODQFLQJRIYDOXHVDQGLQWHUHVWVµVKRXOGEHWDNHQDVHPERG\LQJWKH&RXUW·V

RYHUDOOWDNHRQIUHHGRPRIH[SUHVVLRQ

)URP'HU6SLHJHOWR'HXWVFKODQG0DJD]LQ

D¶'HU6SLHJHO·

´PLW +LOIH GHU LQ GHU « 5HFKWVSUHFKXQJ GHV %XQGHVYHUIDVVXQJVJHULFKWV

HQWZLFNHOWHQ*WHUDEZlJXQJµ

7KH 6SLHJHOFDVHVWLOOLVRQHRIWKHPRVWFRQWURYHUVLDOFDVHVRIWKH&RXUW·V

HDUO\ KLVWRU\ SURGXFLQJ LWV ILUVW SXEOLVKHG PLQRULW\ RSLQLRQ%H\RQG WKH JHQHUDO

FRQWURYHUV\VXUURXQGLQJWKHGHFLVLRQWKHFDVHDOVRPDUNVDQLPSRUWDQWWUDQVLWLRQSRLQW

LQ WKH JHQHDORJ\ RI FRQVWLWXWLRQDO EDODQFLQJ ,Q WKH SXEOLVKHG GHFLVLRQV DQG LQ

FRPPHQWDU\RIWKHWLPHRQHILQGVVLPXOWDQHRXVO\DGHFLVLYHHQGRUVHPHQWRIWKHYDOLGLW\

RI WKH /WK DSSURDFK DQG DQ H[WHQVLRQ RI EDODQFLQJ WR DOO DUHDV RI IUHHGRP RI

%9HUI*(>@

6HH DOVR5(,1+2/'=,33(/,86:(5781*6352%/(0( ,06<67(0 '(5*581'5(&+7( QRWLQJWKDWWKH&RXUW´VROYHGµWKHFRQIOLFWLQWKH¶3ODNDWHQ·FDVHRQWKHEDVLVRI´WKHSULQFLSOHRILQWHUHVW

EDODQFLQJµ

6HH IRU H[DPSOH =,33(/,86 UHDGLQJ ERWK GHFLVLRQV LQ WHUPV RI ´*WHU XQG

,QWHUHVVHQDEZlJXQJµ %XW VHH HJ 6&+/,1. ¶3ODNDWHQ· GHFLGHG ´RKQH HLJHQWOLFKH $EZlJXQJµ ²

¶ZLWKRXWDUHDOEDODQFLQJ·DQGGLVFXVVLQJ6FKPLG6SLHJHODVLQSDUWUHMHFWLQJDQGIROORZLQJ/WK

%9HUI*(¶6SLHJHO8UWHLO·>@´ZLWKWKHDLGRIWKHEDODQFLQJRIYDOXHVGHYHORSHGLQWKH

FDVHODZRIWKH)HGHUDO&RQVWLWXWLRQDO&RXUWµ

%9HUI*(>@

´WKH SULYDWHODZ MXGJH LV UHTXLUHG WR ZHLJK LQ HYHU\ FDVH WKHVLJQLILFDQFH RI WKHULJKW

DJDLQVWWKHYDOXHRIWKHLQWHUHVW²¶5HFKWVJXW·²SURWHFWHGE\D¶JHQHUDOODZ·7KLVGHFLVLRQ

FDQ RQO\ EH PDGH XSRQ D FRPSUHKHQVLYH DQDO\VLV RI WKH LQGLYLGXDO FDVH WDNLQJ DOO

UHOHYDQWFLUFXPVWDQFHVLQWRDFFRXQW$QLQFRUUHFWEDODQFLQJ²¶XQULFKWLJH$EZlJXQJ·²FDQ

YLRODWH WKH EDVLF ULJKW DQG VXVWDLQ D FRQVWLWXWLRQDO FRPSODLQW WR WKH )HGHUDO

&RQVWLWXWLRQDO&RXUWµ

2Q WKH PHULWV RI WKH FDVH WKH )HGHUDO &RQVWLWXWLRQDO &RXUW GHFLGHG WKDW WKH

SULYDWHODZFRXUWVKDG´PLVMXGJHGWKHVSHFLDOVLJQLILFDQFHWKDWDWWDFKHVWRWKHEDVLFULJKW

WRIUHHGRPDOVRZKHUHLWFRPHVLQWRFRQIOLFWZLWKWKHSULYDWHLQWHUHVWVRIRWKHUVµ)DFWRUV

WKDW WKH &RXUW IRXQG SDUWLFXODUO\ UHOHYDQW ZHUH WKH IDFW WKDW WKH VSHHFK LQ TXHVWLRQ

FRQFHUQHGDPDWWHURISXEOLFLQWHUHVWDQGWKDW/WKKDGVSRNHQRXWRI¶SXUHPRWLYHV·

E¶3ODNDWHQ· 6FKPLG6SLHJHO

´1DFKGHQGRUWHQWZLFNHOWHQ*UXQGVlW]HQµ

7KH/WKRSLQLRQTXLFNO\EHFDPHDVWDQGDUGUHIHUHQFHLQIUHHVSHHFKGHFLVLRQV

DQGDQDXWKRULWDWLYHSRLQWRIGHSDUWXUHIRUIUHHGRPRIH[SUHVVLRQODZJHQHUDOO\7KH

&RXUWGHFLGHGDQRWKHUFDVHRQ DUW**RQWKHVDPHGD\DV/WKXQGHUUHIHUHQFHWR

´WKH SULQFLSOHV GHYHORSHG WKHUHµ WKH ¶3ODNDWHQ·8UWHLO DQG FRQILUPHG /WK·V

SUHHPLQHQFH LQ LWV 6FKPLG6SLHJHO GHFLVLRQ7KHVH WZR GHFLVLRQV TXRWH LPSRUWDQW

HOHPHQWVRI/WK·VDSSURDFKWRIUHHGRPRIH[SUHVVLRQLQSDUWLFXODUWKHLGHDRIUHODWLYLW\

RU GLDOHFWLF ² ¶ZHFKVHOZLUNXQJ· EHWZHHQ WKH ULJKW DQG LWV OLPLWDWLRQV ¶3ODNDWHQ· WKH

VXJJHVWLRQ WKDW WKH SDUWLFXODU XVH PDGH RI D FRQVWLWXWLRQDO ULJKW GHWHUPLQHV WKDW ULJKW·V

¶ZHLJKW· LQ UHODWLRQ WR FRPSHWLQJ LQWHUHVWV ¶3ODNDWHQ· DQG 6FKPLG6SLHJHODQG WKH

LQVLVWHQFH WKDW ORZHU FRXUWV WDNH DOO FRPSHWLQJ YDOXHV DQG LQWHUHVWV LQWR FRQVLGHUDWLRQ

6FKPLG6SLHJHO

,QWKH¶3ODNDWHQ·FDVHWKHFRQVWLWXWLRQDOFRPSODLQWRIDWHQDQWZKRKDGZDQWHGWR

DIIL[HOHFWLRQSRVWHUVWRKLVDSDUWPHQW·VZLQGRZEXWKDGEHHQSUHYHQWHGIURPGRLQJVR

E\KLVODQGORUGZDVUHMHFWHG)ROORZLQJWKH/WKPRGHOWKH&RXUWDSSURDFKHGWKHFDVH

ERWKDVDFRQIOLFWEHWZHHQWZRFRQVWLWXWLRQDOULJKWVLQWKHDEVWUDFWWKHULJKWWRSURSHUW\

DQGWKHULJKWWRIUHHGRPRIH[SUHVVLRQDQGDVDFODVKEHWZHHQWKHRSSRVLQJLQWHUHVWV

RIWKHLQGLYLGXDOODQGORUGDQGWHQDQWLQWKHFRQFUHWHFLUFXPVWDQFHVRIWKHFDVH2QWKH

%9HUI*(>@

´2QWKHEDVLVRIWKHSULQFLSOHVGHYHORSHG>LQWKH/WKFDVH@µ%9HUI*(>@

2Q /WK·V JHQHUDO LPSRUWDQFH VHH (UQVW : %|FNHQI|UGH =XU.ULWLNGHU :HUWEHJUQGXQJGHV5HFKWV LQ

5(&+767$$7)5(,+(,7´HLQHHSRFKHPDFKHQGH(QWVFKHLGXQJµ

%9HUI*(¶3ODNDWHQ·>@

%9HUI*( 6FKPLG6SLHJHO >@ 6HH DOVR HJ .DUO $XJXVW %HWWHUPDQQ 'LH DOOJHPHLQHQ

*HVHW]HQDOV6FKUDQNHQGHU3UHVVHIUHLKHLW-=+HU]RJLQ0$81='h5,*+(5=2*6&+2/= QU%HUQVWHLQ5HIOHFWLRQVRQWKH6SLHJHOFDVH

,Q6FKPLG6SLHJHOZLWKTXDOLILFDWLRQV6HH%9HUI*(>@

(11)

E(QWUHQFKPHQW´GLHJHERWHQH$EZlJXQJµ

:LWK LWV PXOWLSOH UHIHUHQFHV WR WKH /WK RSLQLRQ DQG WR WKH ODQJXDJH RI

´*WHUDEZlJXQJµ DQG ´:HUWDEZlJXQJLP(LQ]HOIDOOµ WKH 6SLHJHO GHFLVLRQ ZDV DQ LPSRUWDQW

VWHS LQ WKH HQWUHQFKPHQW RI WKH /WK EDODQFLQJ DSSURDFK WR IUHHGRP RI H[SUHVVLRQ

LVVXHV 7KH IDFW WKDW WKH GHFLVLRQ H[SOLFLWO\ H[WHQGHG WKLV DSSURDFK WR IUHHGRP RI WKH

SUHVV DQG WKH IDFW WKDW PDMRULW\ DQG GLVVHQWHUV DJUHHG RQ WKH FHQWUDOLW\ RI EDODQFLQJ

FRQWULEXWHGWRDUHDGLQJRIWKHFDVHDVOD\LQJGRZQDJHQHUDOPHWKRGIRUWKHDGMXGLFDWLRQ

RIIUHHGRPRIVSHHFKLVVXHV

7KHHQWUHQFKPHQWRIWKH/WKGHFLVLRQ·VEDODQFLQJDSSURDFKLQWKHFRXUVHRIWKH

VFDQLQSDUWLFXODUEHJOHDQHGIURPWZRIDFWRUV)LUVWLWEHFDPHFRPPRQIRUWKH

RUGLQDU\²FULPLQDODQGFLYLO²FRXUWVWRH[SOLFLWO\IRUPXODWHWKHLURZQWUHDWPHQWRIIUHH

VSHHFKLVVXHVLQWHUPVRIDEDODQFLQJRIYDOXHVDQGLQWHUHVWVJLYLQJHIIHFWWRWKH)&&·V

JHQHUDOLQVWUXFWLRQLQWKH/WKFDVHWKDWWKHRUGLQDU\FRXUWVEDODQFHLQHDFKFDVHWKHYDOXH

RI IUHHGRP RI H[SUHVVLRQ DJDLQVW FRPSHWLQJ YDOXHV DQG LQWHUHVWV,Q WKH 6SLHJHO FDVH

LWVHOI IRU H[DPSOH WKH KLJKHVW FULPLQDO FRXUW WKH %XQGHVJHULFKWVKRI H[SOLFLWO\ IUDPHG LWV

GHFLVLRQ ZLWK UHVSHFW WR WKH SHUPLVVLELOLW\ RI WKH FULPLQDOSURFHGXUDO PHDVXUHV

SUHGRPLQDQWO\LQWHUPVRID´*WHUDEZlJXQJµ6HFRQGWKHFRQVWLWXWLRQDOFRPSODLQWVRI

LQGLYLGXDOVLQFUHDVLQJO\FDPHWREHFDVWLQWKHIRUPRIREMHFWLRQVDJDLQVWWKHEDODQFLQJ

XQGHUWDNHQ ² RU RPLWWHG ² E\ WKH RUGLQDU\ FRXUWV$JDLQ WKH /WK GHFLVLRQ ZLWK LWV

ZDUQLQJWRRWKHUFRXUWVWKDWD´ZURQJEDODQFLQJµLQDQGRILWVHOIFRXOGLQIULQJHWKHULJKW

WRIUHHGRPRIH[SUHVVLRQOD\DWWKHEDVLVRIWKLVGHYHORSPHQW

%RWKWUHQGVZHUHRQGLVSOD\LQDFDVHWKDWRQFHDJDLQSUHVHQWHGWKH)&&

ZLWKWKHLVVXHRIDFDOOIRUDER\FRWW²WKHIDFWSDWWHUQDWLVVXHLQWKHRULJLQDO/WKFDVH

$PDMRUSXEOLVKLQJKRXVHWKHZHOONQRZQ6SULQJHU9HUODJKDGFDOOHGRQLWVGLVWULEXWRUVWR

ER\FRWWDPXFKVPDOOHUMRXUQDO%OLQNIHUEHFDXVHRIWKLVMRXUQDO·VSXEOLFDWLRQVRI''5

WHOHYLVLRQSURJUDPPLQJVFKHGXOHV6SULQJHUWKUHDWHQHGLWVDJHQWVDQGGLVWULEXWRUVZLWKD

¶UHYLVLRQ· RI WKHLU UHODWLRQVKLS WR WKH SXEOLVKLQJ KRXVH LQ FDVH RI QRQFRPSOLDQFH ZLWK

WKH FDOO 7KH GLVFRXUVH RI EDODQFLQJ GRPLQDWHG WKH ZKROH WUDMHFWRU\ RI WKH FDVH 7KH

%XQGHVJHULFKWVKRIIRXQGWKDWLWKDGWREDODQFH%OLQNIHU·VLQWHUHVWLQFDUU\LQJRQLWVEXVLQHVV

ZLWK6SULQJHU·VULJKWWRIUHHGRPRIH[SUHVVLRQ%OLQNIHUWKHQVSHFLILFDOO\FRPSODLQHG

WKDWWKHFRXUW·VEDODQFLQJZDVLPSURSHULWVRZQULJKWWRIUHHGRPRIWKHSUHVVKDGEHHQ

OHIWRXWRIFRQVLGHUDWLRQZKLOHLQWHUHVWVQRWUHOHYDQWWRWKHGLVSXWHKDGEHHQWDNHQLQWR

´WKH UHTXLUHG EDODQFLQJµ %9HUI*( >@ 6HH DOVR %9HUI*( %OLQNIHU

>@´GLHYRU]XQHKPHQGH*WHUDEZlJXQJµ²´WKHEDODQFLQJWKDWQHHGVWREHXQGHUWDNHQµ

%9HUI*(>@

6HHHJ%9HUI*(¶6FKPLG6SLHJHO·>@

%9HUI*(>@

%9HUI*(%OLQNIHU>@)RUDGLVFXVVLRQRIWKH%OLQNIHUFDVHVHH.OHLQgIIHQWOLFKHXQG3ULYDWH

)UHLKHLWII

%9HUI*( >@ 6HH DOVR 6FKOLQN QRWLQJ WKDW WKH %XQGHVJHULFKWVKRI KDG

VSHFLILFDOO\WULHGWRIROORZWKH)&&·V/WKGHFLVLRQ

H[SUHVVLRQ DGMXGLFDWLRQ DQG FOHDU LQGLFDWLRQV WKDW WKH /WK YLVLRQ RI EDODQFLQJ ZDV

FRPLQJXQGHULQFUHDVLQJSUHVVXUH

,Q2FWREHUWKHPDJD]LQH¶'HU6SLHJHO·SXEOLVKHGDQDUWLFOHRQWKH*HUPDQ

DUP\·VSUHSDUHGQHVVIRUPLOLWDU\FRQIOLFWZLWKWKH6RYLHW8QLRQ7KHDUWLFOHOLVWHGGHWDLOHG

RYHUYLHZV RI WKH PLOLWDU\ FDSDELOLWLHV RI *HUPDQ\ DQG VHYHUDO RWKHU 1$72 PHPEHU

VWDWHVDQGFRQFOXGHGWKDWWKH:HVW*HUPDQJRYHUQPHQWZDVUHVSRQVLEOHIRU´FRPSOHWHO\

LQDGHTXDWHSUHSDUDWLRQVµ7KHJRYHUQPHQWUHDFWHGWRWKHDUWLFOHE\LQVWLWXWLQJFULPLQDO

SURFHHGLQJVDJDLQVWWKHHGLWRUDQGVHYHUDOSXEOLVKHUVRIWKHMRXUQDODQGE\FDUU\LQJRXW

DQ H[WHQVLYH VHDUFK DW WKH MRXUQDO·V SUHPLVHV GXULQJ ZKLFK D VXEVWDQWLDO DPRXQW RI

GRFXPHQWVZHUHVHL]HG8SRQDFRQVWLWXWLRQDOFRPSODLQWE\WKHSXEOLVKHUWKH)&&LQD

VSOLWGHFLVLRQKHOGWKDWWKLVVHDUFKDQGVHL]XUHGLGQRWYLRODWHWKHJXDUDQWHHRIIUHHGRP

RIWKHSUHVVLQDUW**

7KH &RXUW REVHUYHG WKDW WKH IUHHGRP RI WKH SUHVV ¶FDUULHG ZLWKLQ LW· WKH

SRVVLELOLW\RI¶FRQIOLFWZLWKRWKHUFRQVWLWXWLRQDOO\SURWHFWHGYDOXHV·LQWKHIRUPRIULJKWV

DQGLQWHUHVWVRIRWKHULQGLYLGXDOVDVZHOODVWKRVHRIJURXSVDQGRIVRFLHW\DVDZKROH

%RWK QDWLRQDO VHFXULW\ DQG IUHHGRP RI WKH SUHVV EHLQJ ´6WDDWVQRWZHQGLJNHLWHQµ ²

FRQVWLWXWLRQDOHVVHQWLDOVWKHWDVNIRUWKH&RXUWZDVWREDODQFHLQWKHLQGLYLGXDOFDVH

´WKHGDQJHUVWRWKHVHFXULW\RIWKHFRXQWU\WKDWPD\DULVHIURPSXEOLFDWLRQDJDLQVW

WKH QHHG WR EH LQIRUPHG RI LPSRUWDQW RFFXUUHQFHV HYHQ LQ WKH DUHD RI GHIHQVH

SROLFLHVµ%HFDXVH JRYHUQPHQWDO LQWHUIHUHQFH ZLWK D SDUWLFXODU SXEOLFDWLRQ LV OLNHO\ WR

KDYHDFKLOOLQJHIIHFWRQSUHVVIUHHGRPJHQHUDOO\

´WKHUH H[LVWV DQ LQHVFDSDEOH FRQIOLFW EHWZHHQ WKH LQWHUHVWV RI FULPLQDO SURVHFXWLRQDQG

WKH SURWHFWLRQ RI SUHVV IUHHGRP D FRQIOLFW WKDW KDV WR EH VROYHG ZLWK WKH DLG RI WKH

EDODQFLQJ RI YDOXHV ² ¶*WHUDEZlJXQJ· GHYHORSHG LQ WKH FDVH ODZ RI WKH )HGHUDO

&RQVWLWXWLRQDO&RXUWµ

$SSO\LQJWKHVHSULQFLSOHVWRWKHFDVHDWKDQGWKH¶PDMRULW\·RQWKHEDVLVRID

´VDFKOLFKH:HUWDEZlJXQJLP(LQ]HOIDOOµ²D´VXEVWDQWLYHEDODQFLQJRIYDOXHVLQWKHLQGLYLGXDO

FDVHµIRXQGWKDWWKHSURVHFXWLRQDQGWKHORZHUFRXUWKDGFRUUHFWO\MXGJHGWKHVHDUFK

DQG VHL]XUH WR EH ERWK D VXLWDEOH DQG D QHFHVVDU\ UHVSRQVH WR WKH WKUHDW FDXVHG E\ WKH

SXEOLFDWLRQ

4XRWHGDQGWUDQVODWHGLQ%HUQVWHLQ5HIOHFWLRQVRQWKH6SLHJHOFDVH

%9HUI*(>@WUDQVODWHGLQ%HUQVWHLQ,ELG

%9HUI*(>@RZQWUDQVODWLRQ

7KH &RXUW ZDV HYHQO\ VSOLW 2Q WKH EDVLV RI $UW 3DUD RI WKH /DZ RQ WKH )HGHUDO

&RQVWLWXWLRQDO&RXUWQRLQIULQJHPHQWRIWKH%DVLF/DZFRXOGEHGHFODUHGLQWKHFDVHRIDQHTXDOGLYLVLRQ

%9HUI*(>@