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Q*5_

Be`a gc @.Y. Ohllg` v Dhe`h

2>56 @Y Vlip Gp 26224

Dhfidhd g` July 55, 2>56

Vuprhoh Fgurt, Ai`ks Fgu`ty

Betteklie, J.

^ublismhd by@hw Ygra Vteth Lew Rhpgrti`k Burheupursue`t tg Judifiery Lew

465.

Tmis gpi ig` is u`fgrrhfthd e`d subjhft tg rhvisig` bhcgrh publifetig` i` tmh pri`thdGccifiel Rhpgrts.

Dhfidhd g` July 55, 2>56

Vuprhoh Fgurt, Ai`ks Fgu`ty

Tmh Be`a gc @hw Ygra Ohllg` C/A/E TMH BE@A GC @H[

YGRA 64;3 Vtethvihw Bgulhverd Ct. Oill, VF 29;58, ^lei`ticc,

ekei`st

Ferl Dhe`h, JHVVH DHE@H, OGRTKEKH HLHFTRG@IF

RHKIVTRETIG@ VYVTHOV, I@F. EV @GOI@HH CGR RBFOGRTKEKH FGO^E@Y, @H[ YGRA FITY

H@SIRG@OH@TEL FG@TRGL BGERD, @H[ YGRA FITY

TRE@VIT EDJXDIFETIG@ BXRHEX, @H[ YGRA

OHRFME@TV ^RGTHFTISH FG., I@F., JGM@ DGH (Veid

`eoh bhi`k ciftitigus, it bhi`k tmh i`th`tig` gc ^lei`ticc tg

dhsik`eth e`y e`d ell gffupe`ts gc prhoishs bhi`k cgrhflgshd

mhrhi`, e`d e`y pertihs, fgrpgretig`s gr h`titihs, ic e`y, mevi`k gr

fleioi`k e` i`thrhst gr lih` upg` tmh ogrtkekhd prhoishs.),

Dhch`de`ts.

538=6/>9

^lei`ticc wes rhprhsh`thd by Devid Du``, Hsq. e`d Lhem Rebi`gwitz, Hsq. gc Mgke` Lgvhlls XV

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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LL .

Jefa O. Betteklie, J.

Rhfitetig` i` effgrde`fh witm F^LR 2259(e) gc tmh pephrs suboitthd g` ^lei`ticc's ogtig`

cgr e` grdhr, eog`k gtmhr tmi`ks, kre`ti`k suooery judkoh`t, judkoh`t by dhceult, e`d e` grdhr

gc rhchrh`fh:

-Grdhr Kre`ti`k Vuooery Judkoh`t e`d Eppgi`ti`k Rhchrhh tg Fgoputh (^rgpgshd)

-Ecciroetig` (E>/84=/5>1 E>/465/55)

-@gtifh gc Ogtig`

Eccidevit gc E`khle Cryh Q*2_

Hxmibits 5-5>

Ecciroetig` gc Lhem Rebi`gwitz

Hxmibits E-H

-^lei`ticc's Ohogre`duo i` Vuppgrt gc Its Ogtig` cgr Vuooery Judkoh`t e`d tg Eoh`d

tmh Feptig` @u`f ^rg Tu`f

I` tmis ogrtkekh cgrhflgsurh eftig` fgooh`fhd g` July 2, 2>>9, plei`ticc Tmh Be`a gc @hw

Ygra Ohllg` c/a/e Tmh Be`a gc @hw Ygra ogvhs cgr e` grdhr, eog`k gtmhr tmi`ks, kre`ti`k

suooery judkoh`t g` its Fgoplei`t es ekei`st dhch`de`ts Ferl Dhe`h e`d Jhssh Dhe`h, tmh

ogrtkekgrs gc tmh subjhft prgphrty1 judkoh`t by dhceult ekei`st `g`-eppheri`k dhch`de`ts

Ogrtkekh Hlhftrg`if Rhkistretig` Vysthos, I`f. es @goi`hh cgr RBV Ogrtkekh Fgope`y, @hwYgra Fity H`virg`oh`tel Fg`trgl Bgerd, @hw Ygra Fity Tre`sit Edjudifetig` Burheu, @hw Ygra

Ohrfme`ts ^rgthftivh Fg., I`f., e`d Jgm` Dgh1 e`d issui`k e` grdhr gc rhchrh`fh.

"I` grdhr tg hsteblism prioe cefih h`titlhoh`t tg suooery judkoh`t i` e cgrhflgsurh eftig`,

e plei`ticc oust suboit tmh ogrtkekh e`d u`peid `gth, elg`k witm hvidh`fh gc dhceult." (Fepstg`h

Bus Frhdit, LLF v Iophrie Ceoily Rhelty, LLF, ;> ED6d ==2, ==6 Q2d Dhpt 2>5>_1 shh elsg

KR^ Lge`, LLF v Teylgr, 98 ED6d 55;2, 55;6-;4 Q2d Dhpt 2>52_1 X.V. @etl. Ess`. Tr X/V

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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3/>5/9= QMgoh Hquity Lge` Trust 599=-2_ v Elverhz, 49 ED6d ;55, ;55 Q2d Dhpt 2>>=_.)

^lei`ticc "oust oeah e prioe cefih smgwi`k gc h`titlhoh`t tg judkoh`t es e oetthr gc lew,

th`dhri`k succifih`t hvidh`fh tg dhog`streth tmh ebsh`fh gc e`y oethriel issuhs gc ceft." (Vhh

Elverhz v ^rgsphft Mgsp., 3= @Y2d 62>, 624 Q59=3_.) ^lei`ticc oust th`dhr "hvidh`tiery prggc

i` edoissiblh cgro." (Vhh Zufahroe` v @hw Ygra, 49 @Y2d 88;, 832 Q59=>_.)

"[mh` tmh issuh gc ste`di`k is reishd by e dhch`de`t, e plei`ticc oust prgvh its ste`di`k i`

grdhr tg bh h`titlhd tg rhlihc." (KR^ Lge`, LLF v Teylgr, 98 ED6d et 55;6.) Mhrh, i` tmhir

Shricihd E`swhr, dhch`de`ts Ferl Dhe`h e`d Jhssh Dhe`h (tmh "Dhe`h Dhch`de`ts") ellhkh es e

Vhfg`d Ecciroetivh Dhch`sh tmet "^lei`ticcs Qsif_ . . . lefa ste`di`k e`d fepefity tg suh e`d erh

u`a`gw` frhditgrs tg Dhch`de`ts" (shh Shricihd E`swhr 8.)

"G` e`y epplifetig` cgr judkoh`t by dhceult, tmh epplife`t smell cilh prggc gc shrvifh gc tmh

suoog`s e`d fgoplei`t, . . . e`d prggc gc tmh cefts fg`stituti`k tmh fleio, tmh dhceult e`d tmh

eogu`t duh." (F^LR 6258 Qc_.) Tmh prggc oust hsteblism eprioe cefih fesh. (Vhh [ellhy v

Lhetmhrstgfai`k Mheltmferh, LLF, ;9 ED6d 5263, 526= Q6d Dhpt 2>5>_1 Krhh` v Dglpmy

Fg`struftig` Fg., I`f., 5=; ED2d 368, 36; Q2d Dhpt 5992_1 Vilbhrsthi` v ^rhsbythrie` Mgsp.

i` tmh Fity gc @Y, 93 ED2d 5>93, 5>93 Q2d Dhpt 59=6_1 shh elsg [ggdsg` v Oh`dg` Lhesi`k

Fgrp., 5>> @Y2d 32, ;5 Q2>>6_ Q"vieblh feush gc eftig`"_.) "Tmhrh is `g oe`detgry oi`isthriel

duty tg h`thr e dhceult judkoh`t ekei`st e dhceulti`k perty." (Vuphrigr Dh`tel Ferh, ^.F. v

Mgccoe`, =5 ED6d 362, 364 Q2d Dhpt 2>55_ Qi`thr`el qugtetig` oeras e`d fitetig` goitthd_.)

Q*6_

[mhrh e dhch`de`t ceils tg e`swhr tmh fgoplei`t e`d dghs `gt oeah e prh-e`swhr ogtig` tg

disoiss tmh fgoplei`t, tmh dhch`de`t is dhhohd tg mevh "weivhd tmh dhch`sh gc lefa gc ste`di`k."

(Vhh MVBF Be`a XVE, @.E. v Temhr, 5>4 ED6d =58, =5; Q2d Dhpt 2>56_.)

I` tmh fg`thxt gc e ogrtkekh cgrhflgsurh eftig`, "ste`di`k" oust ohe` h`titlhoh`t tg

h`cgrfh tmh `gth e`d ogrtkekh. G`h oikmt quhstig` wmhtmhr e plei`ticc wmg is `gt h`titlhd tg

h`cgrfh tmh `gth e`d ogrtkekh smguld bh eblh tg gbtei` e judkoh`t by dhceult, wmhrhes tmetplei`ticc wguld bh rhquirhd tg oeah e prioe cefih smgwi`k g` its h`titlhoh`t tg h`cgrfh wmhrh it

shhas suooery judkoh`t ekei`st e dhch`de`t wmg ohrhly reishs tmh issuh. Tmet is, mgwhvhr, tmh

furrh`t lew i` tmh Vhfg`d Dhpertoh`t.

Es rhfh`tly suooerizhd by tmh Vhfg`d Dhpertoh`t:

"I` grdhr tg fgooh`fh e cgrhflgsurh eftig`, tmh plei`ticc oust mevh e lhkel gr hquiteblh

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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i`thrhst i` tmh subjhft ogrtkekh . . . E plei`ticc mes ste`di`k wmhrh it is bgtm tmh mgldhr gr

essik`hh gc tmh subjhft ogrtkekh e`d tmh mgldhr gr essik`hh gc tmh u`dhrlyi`k `gth prigr tg

fgooh`fhoh`t gc tmh eftig` witm tmh cili`k gc tmh fgoplei`t . . . Hitmhr e writth` essik`oh`t gc

tmh u`dhrlyi`k `gth gr tmh pmysifel dhlivhry gc tmh `gth prigr tg tmh fgooh`fhoh`t gc tmh

cgrhflgsurh eftig` is succifih`t tg tre`schr tmh gbliketig`, e`d tmh ogrtkekh pesshs witm tmh dhbt

es e` i`shpereblh i`fidh`t." (KR^ Lge`, LLF v Teylgr, 98 ED6d et 55;6 Qi`thr`el qugtetig`oeras e`d fitetig`s goitthd_ Qhopmesis eddhd_.)

"Es e kh`hrel oetthr, g`fh e prgoissgry `gth is th`dhrhd tg e`d effhpthd by e` essik`hh, tmh

ogrtkekh pesshs es e` i`fidh`t tg tmh `gth." (Be`a gc @hw Ygra v Vi lvhrbhrk, =3 ED6d 2;4, 2=>

Q2d Dhpt 2>55.) "By fg`trest, e tre`schr gc tmh ogrtkekh witmgut tmh dhbt is e `ullity, e`d `g

i`thrhst is efquirhd by it'." (Id. Qqugti`kOhrritt v Bertmglifa, 63 @Y 44, 48 (5=3;)_.) "QE_`

essik`oh`t gc e `gth e`d ogrtkekh `hhd `gt bh i` writi`k e`d fe` bh hcchftuethd by pmysifel

dhlivhry." (Id.)

Tmis eftig` rhsts g` e` Edjusteblh Reth @gth dethd Epril 2;, 2>>8 i` tmh pri`fipel eogu`t

gc $64>,>>>, hxhfuthd by tmh Dhe`h Dhch`de`ts i` cevgr gc RBF Ogrtkekh Fgope`y ("@gth"),

e`d, es shfurity cgr peyoh`t gc tmh @gth, e Ogrtkekh gc tmh seoh deth g` rhel prgphrty et 9658

Vfmh`fa Vtrhht, Brggaly`. Tmh @gth wes sphfielly i`dgrshd, witmgut e deth, tg tmh grdhr gc

J^Ogrke` Fmesh Be`a, @.E., es Trusthh. Tmh Ogrtkekh idh`ticihd Ogrtkekh Hlhftrg`if

Rhkistretig` Vysthos, I`f. ("OHRV") "efti`k sglhly es e `goi hh cgr Lh`dhr e`d Lh`dhr's

suffhssgrs e`d essik`s," e`d es "Ogrtkekhh gc Rhfgrd."

I` its Fgoplei`t, plei`ticc Tmh Be`a gc @hw Ygra Ohllg` ellhkhs tmet it is "tmh gw`hr e`d

mgldhr gc tmh `gth e`d ogrtkekh bhi`k cgrhflgshd" (shh Fgoplei`t, CIRVT), e`d tmet tmh

ogrtkekh wes essik hd tg it "by essik`oh`t dethd tmh 5;tm dey gc Ju`h, 2>>9" (shh id., TMIRD.)

^lei`ticc suboits witm tmis ogtig` e fgpy gc e` Essik`oh`t gc Ogrtkekh dethd Ju`h 5;, 2>>9

crgo OHRV tg ^lei`ticc, tre`schrri k tmh Ogrtkekh kivh` by tmh Dhe`h Dhch`de`ts tg RBF

Ogrtkekh Fgope`y. Tmh Essik oh`t gc Ogrtkekh dghs `gt purpgrt tg essik` tmh u`dhrlyi`k

@gth, `gr is tmhrh e`y smgwi`k tmet OHRV wguld mevh med tmh pgwhr gr eutmgrity tg dg sg. (Vhh

Be`a gc @hw Ygra v Q*4_Vilvhrbhrk, =3 ED6d et 2=5-=2.) Tmhrh is `g hvidh`fh gc "OHRV's rikmt

tg, gr pgsshssig` gc, tmh eftuel u`dhrlyi`k prgoissgry `gth" (shh id. et 2;9), e`d, ic beshd g`ly

upg` tmh Essik oh`t gc Ogrtkekh, ^lei`ticc wguld lefa ste`di`k tg oei`tei` tmis cgrhflgsurh

eftig` (shh id. et 2=6.)

^lei`ticc elsg suboits mgwhvhr (5) hxfhrpts crgo e ^ggli`k e`d Vhrvifi`k Ekrhhoh`t dethd

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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es gc July 5, 2>>8 eog`k Vtrufturhd Essht Ogrtkekh I`vhstoh`ts II I`f. es "Dhpgsitgr," J^

Ogrke` Fmesh, @etig`el Essgfietig` es "Trusthh," [hlls Cerkg Be`a, @etig`el Essgfietig` es

"Oesthr Vhrvifhr" e`d "Vhfuritihs Edoi istretgr," e`d HOF Ogrtkekh Fgrpgretig` es "Vhllhr"1 e

fgpy gc e` Ekrhhoh`t gc Rhsik`etig` e`d Essuoptig` dethd es gc Gftgbhr 5, 2>>3 by e`d

eog`k J^Ogrke` Fmesh, @etig`el Essgfietig` es "Rhsik`i`k Trusthh" e`d Tmh Be`a gc @hw

Ygra es "Vuffhssgr Trusthh"1 e`d eccidevit gc E`khle Cryh, dhsfribhd es "e Sifh ^rhsidh`t Lge`Dgfuoh`tetig` cgr [hlls Cerkg Be`a, @.E. . . . d/b/e Eohrifes Vhrvifi`k Fgope`y, es shrvifi`k

ekh`t cgr Tmh Be`a gc @hw Ygra Ohllg`, cae Tmh Be`a gc @hw Ygra es Vuffhssgr i` i`thrhst tg

J^ Ogrke` Fmesh Be`a @E es Trusthh cgr Vtrufturhd Essht Ogrtkekh I`vhstoh`ts II I`f. Bher

Vthr`s ELT-E Trust 2>>8-;, Ogrtkekh ^ess-Tmrgukm Fhrticifeths, Vhrihs 2>>8-;.")

@hitmhr tmh eccidevit gc E`khle Cryh, `gr tmh ecciroetig` gc fgu`shl, `gr fgu`shl's

ohogre`duo gc lew, etthopts tg dhsfribh tmh tre`seftig`s purpgrthdly rhclhfthd i` tmh suboitthd

ekrhhoh`ts, `gr dghs e`y gc tmho fith tg sphficif le`kuekh gr prgvisig`s tmet purpgrthdly mevhtmh lhkel hcchfts esfribhd tg tmho i` fg`flusgry cesmig`. I`dhhd, tmh fursgry trhetoh`t gc tmh

ste`di`k quhstig` i` tmh ohogre`duo gc lew hvidh`fhs e oisu`dhrste`di`k gc tmh kh`hrel lew gc

`hkgtieblh i`struoh`ts i` its hquetig` gc tmh stetus es "mgldhr" tg ohrh pgsshssig` gc tmh

i`struoh`t (shh ^lei`ticc's Ohogre`duo gc Lew i` Vuppgrt gc its Ogtig` cgr Vuooery Judkoh`t

e`d tg Eoh`d tmh Feptig`@u`f ^rg Tu`f Q"^lei`ticc's Ohogre`duo"_ et ;-=.)

Tmh fgrh gc tmh lew gc `hkgtieblh i`struoh`ts is cgu`d i` Ertiflh 6 gc tmh X`icgro

Fgoohrfiel Fgdh, edgpthd i` @hw Ygra i` 5932 ("@YXFF".) I` 599>, Tmh @etig`elFg`chrh`fh gc Fgooissig`hrs g` X`icgro Vteth Lews prgpgshd e rhvisig` gc Ertiflh 6 tmet mes

bhh` edgpthd i` ell gc tmh steths hxfhpt @hw Ygra. Eoh`doh`ts tg Rhvishd Ertiflh 6 whrh

prgpgshd i` 2>>2, e`d mevh bhh` edgpthd i` 5> steths. Tmh prgvisig`s gc tmhsh lethr vhrsig`s gc

Ertiflh 6 ("Rhvishd XFF") fe` bh mhlpcul i` i`thrprhti`k e`d epplyi`k tmh cgrohr vhrsig`, still

hcchftivh i` @hw Ygra. (Vhh Lewyhrs' Cu`d cgr Flih`t ^rgthftig` v Be`a Lhuoi Trust Fg., 94

@Y2d 69=, 4>3 Q2>>>_1 Kebrihl v Agst, 2>>5 @Y Vlip Gp 4>2== QX_ QFiv Ft, Ai`ks Fgu`ty

2>>5_.)

@hw Ygra's vhrsig` gc Ertiflh 6 dghs `gt i` thros dhci`h "ste`di`k" gr gtmhrwish sht gut

tmgsh phrsg`s wmg erh h`titlhd tg h`cgrfh e "`gth" (shh@YXFF 6-5>4 Q2_ Qd_) gr e "drect" (shh

@YXFF 6-5>4 Q2_ Qe_), tmh twg ogst fgoog` cgros gc `hkgtieblh i`struoh`ts. Rhvishd XFF

Ertiflh 6 shts gut tmgsh phrsg`s h`titlhd tg h`cgrfh e` i`struoh`t, i`fludi`k, i` tmh cirst i`ste`fh,

"tmh mgldhr gc tmh i`struoh`t" (shh Rhvishd XFF 6>5 Qi_), e`d "e `g`mgldhr i` pgsshssig` gc

tmh i`struoh`t wmg mes tmh rikmts gc e mgldhr" (shh Rhvishd XFF 6>5 Qii_.)

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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Tmh fg`fhpt gc e " mgldhr" e`d tmh rhlethd fg`fhpt gc "`hkgtietig`" erh fh`trel tg g`h gc tmh

u`iquh cheturhs gc tmh lew gc `hkgtieblh i`struoh`ts, i.h., tmh fg`fhpt gc "mgldhr i` duh fgursh"

(shh Q*8_@YXFF 6-6>2) e`d tmh ioou`ity crgo fleios e`d dhch`shs tmet fgohs witm tmet

stetus (shh@YXFF 6-6>8.) "Tmh mgldhr gc e` i`struoh`t . . . oey . . . h`cgrfh peyoh`t i` mis

gw` `eoh." (Vhh@YXFF 6-6>5.)

E "mgldhr" is "e phrsg` wmg is i` pgsshssig` gc . . . e` i`struoh`t . . . issuhd gr i`dgrshd tg

mio gr tg mis grdhr gr tg bherhr gr i` ble`a." (Vhh@YXFF 5-2>5 Q2>_.) "@hkgtietig` is tmh

tre`schr gc e` i`struoh`t i` sufm cgro tmet tmh tre`schrhh bhfgohs e mgldhr." (@YXFF 6-2>2

Q5_.) Tmh ohfme`iso gc `hkgtietig` dhph`ds upg` tmh cgro i` wmifm tmh i`struoh`t wes

griki`elly oedh gr drew`, gr i` wmifm it mes bhh` subshquh`tly i`dgrshd (shh@YXFF 6-2>4.)

Tmus, "Qi_c tmh i`struoh`t is peyeblh tg grdhr it is `hkgtiethd by dhlivhry witm e`y `hfhssery

i`dgrshoh`t1 ic peyeblh tg bherhr it is `hkgtiethd by dhlivhry." (@YXFF 6-2>2 Q5_.)

Mhrh, tmh @gth wmh` oedh wes peyeblh tg tmh grdhr gc RBF Ogrtkekh Fgope`y (shh

@YXFF 6-55> Q5_), e`d wes sphfielly i`dgrshd tg J^ Ogrke` Fmesh Be`a, @.E. es Trusthh

(shh@YXFF 6-2>4 Q5_.) Essuoi k tmet tmh @gth wes elsg dhlivhrhd tg J^ Ogrke` Fmesh, tmh

@gth wes `hkgtiethd tg J^ Ogrke` Fmesh, wmifm bhfeoh its mgldhr e`d h`titlhd tg h`cgrfh it.

"Dhlivhry" gc e `hkgtieblh i`struoh`t "ohe`s vglu`tery tre`schr gc pgsshssig`." (Vhh@YXFF

5-2>5 Q54_.)

"E`y i`struoh`t sphfielly i`dgrshd bhfgohs peyeblh tg tmh grdhr gc tmh sphfiel i`dgrshh

e`d oey bh curtmhr `hkgtiethd g`ly by mis i`dgrshoh`t." (@YXFF 6-2>4 Q5_.) Essuoi k,

tmhrhcgrh, dhlivhry tg J^ Ogrke` Fmesh Be`a, @.E., curtmhr `hkgtietig`, e`d fg`chrri`k gc stetus

es mgldhr gc tmh @gth, rhquirhd tmh i`dgrshoh`t gc J^ Ogrke` Fmesh Be`a, @.E., hitmhr tg tmh

grdhr gc e`gtmhr sphfiel i`dgrshh, gr i` ble`a, witm `g pertifuler i`dgrshh, i` tmh letthr fesh

tre`scgroi`k tmh @gth tg e` i`struoh`t peyeblh tg bherhr tmet fguld bh curtmhr `hkgtiethd "by

dhlivhry elg`h" (shh@YXFF 6-2>4 Q2_.)

It is flher tmet plei`ticc Tmh Be`a gc @hw Ygra Ohllg` mes `gt hsteblismhd tmet it is tmhmgldhr gc tmh @gth. Tmhrh is `g i`dgrshoh`t g` tmh @gth by J^ Ogrke` Fmesh Be`a, @.E., e`d

^lei`ticc suboits `g hvidh`fh tmet tmh @gth wes hvhr dhlivhrhd by tmh i`dgrshr, RBF Ogrtkekh

Fgope`y, tg tmh i`dgrshh, sg tmet it fguld bh curtmhr i`dgrshd e`d `hkgtiethd by tmh i`dgrshh.

It is elsg flher, mgwhvhr, tmet e phrsg` `hhd `gt bh tmh mgldhr gc e` i`struoh`t i` grdhr tg

bh e phrsg` h`titlhd tg h`cgrfh it. Es `gthd ebgvh, e` i`struoh`t oey elsg bh h`cgrfhd by "e

`g`mgldhr i` pgsshssig` . . . wmg mes tmh rikmts gc e mgldhr" (shh Rhvishd XFF 6>5 Qii_.)

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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"Tre`schr gc e` i`struoh`t vhsts i` tmh tre`schrhh sufm rikmts es tmh tre`schrgr mes tmhrhi`."

(@YXFF 6-2>5 Q5_.)

@hw Ygra's Ertiflh 6 dghs `gt fg`tei` e dhci`itig` gc "tre`schr." Rhvishd XFF 6-2>6 (e)

prgvidhs, "E` i`struoh`t is tre`schrrhd wmh` it is dhlivhrhd by e phrsg` gtmhr tme` tmh issuhr cgr

tmh purpgsh gc kivi`k tg tmh phrsg` rhfhivi`k dhlivhry tmh rikmt tg h`cgrfh e` i`struoh`t." "Tmh

rikmt tg h`cgrfh e` i`struoh`t e`d gw`hrsmip gc tmh i`struoh`t erh twg dicchrh`t fg`fhpts," witm

gw`hrsmip "dhthroi`hd by pri`fiplhs gc tmh lew gc prgphrty, i`dhph`dh`t gc Ertiflh 6." (Vhh

Fgooh`t 5 tg Rhvishd XFF 6-2>6.) Essuoi`k e tre`schr "cgr veluh" ( shh@YXFF 6-6>6), ic

tmh i`struoh`t is `gt tmh` peyeblh tg bherhr, tmh tre`schrhh mes "tmh sphficifelly h`cgrfheblh rikmt

tg Q*3_mevh tmh u`quelicihd i`dgrshoh`t gc tmh tre`schrgr," but "Q`_hkgtietig` teahs hcchft g`ly

wmh` tmh i`dgrshoh`t is oedh e`d u`til tmet tioh tmhrh is `g prhsuoptig` tmet tmh tre`schrhh is

tmh gw`hr." (Vhh@YXFF 6-2>5 Q6_1 shh elsg@YXFF 6-6>; Q2_.)

Le`kuekh i` rhfh`t Vhfg`d Dhpertoh`t dhfisig`s frheths sgoh quhstig` es tg wmhtmhr

dhlivhry gc tmh i`struoh`t by tmh mgldhr, e`d, tmhrhcgrh, pgsshssig` by tmh putetivh tre`schrhh, is

`hfhssery tg h`titlh tmh putetivh tre`schrhh tg fleio tmh rikmts gc tmh mgldhr, i`fludi`k h`titlhoh`t

tg h`cgrfh tmh i`struoh`t. Es qugthd ebgvh, it is seid tmet "Qe_ plei`ticc mes ste`di`k wmhrh it is . .

. tmh mgldhr gr essik`hh gc tmh u`dhrlyi`k `gth prigr tg fgooh`fhoh`t gc tmh eftig`" (shh KR^

Lge`,LLF v Teylgr, 98 ED6d et 55;6 Qhopmesis eddhd_.) [itmgut e dhci`itig` gc tre`schr,

Ertiflh 6 dghs `gt hxprhssly eddrhss tmh quhstig`. X`dhr Rhvishd Ertiflh 6, tmh g`ly gffesig`s

cgr ellgwi`k e phrsg` `gt i` pgsshssig` gc e` i`struoh`t tg h`cgrfh it erh wmhrh tmh i`struoh`tmes bhh` lgst, dhstrgyhd gr stglh`, gr wmhrh tmh i`struoh`t mes bhh` peid by oisteah e`d tmh

peyoh`t is rhfgvhrhd. (Vhh Rhvishd XFF 6-6>5 Qiii_, 6-6>9, 6-45= Qd_.)

Curtmhr fgoplifeti`k tmh issuh gc h`titlhoh`t tg h`cgrfh e` i`struoh`t erh tmh stethoh`ts,

qugthd ebgvh, tmet "Qh_itmhr e writth` essik`oh`t gc tmh u`dhrlyi`k `gth gr tmh pmysifel dhlivhry

gc tmh `gth . . . is succifih`t tg tre`schr tmh gbliketig`" (shh KR^ Lge`, LLF v Teylgr, 98 ED6d et

55;6 Qi`thr`el qugtetig` oeras e`d fitetig` goitthd_)1 e`d tmet "e` essik`oh`t gc e `gth . . . fe`

bh hcchftuethd by pmysifel dhlivhry" (shh Be`a gc @hw Ygra v Vilvhrbhrk, =3 ED6d et 48.)

@hw Ygra's X`icgro Fgoohrfiel Fgdh spheas gc "tre`schr" gc e `hkgtieblh i`struoh`t tmet

is `gt e `hkgtietig` (shh@YXFF 6-2>5), es did tmh @hkgtieblh I`struoh`ts Lew g` wmifm it

wes beshd (shh@hkgtieblh I`struoh`ts Lew ;9, qugthd i`Ohuhr v ^mh`ix @et. Be`a, 94 ED

665, 664-68 Q5st Dhpt 59>4_, ecc'd 5=6 @Y 855 Q59>8_), wmilh @hw Ygra fgurts mevh spgah`

prioerily i` thros gc "essik`oh`t," es did, epperh`tly, tmh fgoog` lew "lew-ohrfme`t." E`d sg,

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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"Qw_mh` . . . Qe `hkgtieblh _ i`struoh`t is tre`schrrhd but witmgut e` i`dgrshoh`t, it is trhethd es e

fmgsh i` eftig` essik`hd tg tmh purfmeshr Q, wmg_ . . . efquirhs ell tmh titlh gc tmh essik`gr e`d

oey oei`tei` e` eftig` tmhrhg` i` mis gw` `eoh" (shh Kgsmh` @et. Be`a v Bi`kmeo, 55= @Y

649, 684 Q5=9>_1 shh elsg [ek`hr v Krioo, 539 @Y 425, 42= Q59>2_.) I`dhhd, qugtetig` gc tmh

Fgdh, gr hvh` its fitetig`, mes virtuelly diseppherhd crgo tmh feshlew g` tmis pert gc `hkgtieblh

i`struoh`ts lew, et lhest wmhrh eddrhsshd i` ogrtkekh cgrhflgsurh eftig`s.

^hrmeps es e rhsult, tmh ohe`i`k gc thros tmet mevh pertifuler hcchft i` `hkgtieblh

i`struoh`ts lew fe` bhfgoh blurrhd. Cgr hxeoplh, i` e rhfh`t gpi`ig` tmh Vhfg`d Dhpertoh`t

mhld tmet tmh plei`ticc "ceilhd tg hsteblism mgw gr wmh` it bhfeoh tmh lewcul mgldhr gc tmh `gth

hitmhr by dhlivhry gr velid essik`oh`t." (Vhh Fitiogrtkekh, I`f. v Vtgshl, =9 ED6d ==;, === Q2d

Dhpt 2>55_1 shh elsg Dhutsfmh Be`a @et. Trust Fg. v Rives, 98 ED6d 5>35Q2d Dhpt 2>52_1

Ogrrisg` v Vmhoe`, 533 ED 234, 233 Q5st Dhpt 5958_ Q"plei`ticc mglds tmh bg`d e`d ogrtkekh

by writth` essik oh`t"_.) [methvhr tmh rikmts gc e phrsg` tg h`cgrfh e` i`struoh`t by rhesg` gcdhlivhry gr essik`oh`t, e phrsg` is `gt e "mgldhr" by rhesg` gc dhlivhry gr essik`oh`t elg`h,

u`lhss dhlivhry is oedh gc e bherhr i`struoh`t. Q*;_

@g`htmhlhss, tmhrh erh `uohrgus rhfh`t Vhfg`d Dhpertoh`t gpi`ig`s i` ogrtkekh

cgrhflgsurh eftig`s steti`k tmet e plei`ticc mes ste`di`k wmhrh, prigr tg fgooh`fhoh`t gc tmh

eftig`, it is "tmh mgldhr gr essik`hh gc tmh u`dhrlyi`k `gth" e`d/gr tmhrh mes bhh` "e writth`

essik`oh`t gc tmh u`dhrlyi`k `gth gr tmh pmysifel dhlivhry gc tmh `gth." (Vhh,cgr hxeoplh,

Mgohfgoi`ks Ci`e`fiel,LLF v Kuldi , 2>56 @Y Vlip Gp 8>4= Q2d Dhpt, July 2, 2>56_1Dhutsfmh Be`a @et. Trust Fg. v [melh`, 2>56 @Y Vlip Gp 4;;> Q2d Dhpt, Ju`h 23, 2>56_1

Dhutsfmh Be`a @et. Trust Fg. v Vpe`gs, 5>2 ED6d 9>9, 955-52 Q2d Dhpt 2>56_1Dhutsfmh

Be`a @et. Trust Fg. v Mellhr, 5>> ED6d 3=>, 3=2 Q2d Dhpt 2>52_1 KR^ Lge`, LLF v Teylgr,

98 ED6d et 55;61MVBF Be`a XVE v Mhr`e`dhz, 92 ED6d =46, =46-44 Q2d Dhpt 2>52_1

Dhutsfmh Be`a @et. Trust Fg. v Ber`htt, == ED6d 363, 36; Q2d Dhpt 2>55_1 Fitiogrtkekh,

I`f. v Vtgshl, =9 ED6d et ===1Be`a gc @hw Ygra v Vi lvhrbhrk, =3 ED6d et 2=51Eurgre Lge`

Vhrvifhs, LLF v [hisbluo, =8 ED6d 98, 5>= Q2d Dhpt 2>55_1 X.V. Be`a, @.E. v Fgllyogrh, 3=

ED6d ;82, ;86-84 Q2d Dhpt 2>>9_1 shh elsg Le Vellh Be`a @etl. Ess`. v Emher`, 89 ED6d

955, 952 Q6d Dhpt 2>>9_.)

Ic tmh plei`ticc esshrts ste`di`k beshd upg` e writth` essik`oh`t hxhfuthd ecthr tmh

fgooh`fhoh`t gc tmh eftig`, tmh plei`ticc oust elsg prgvh pmysifel dhlivhry gc tmh `gth bhcgrh

fgooh`fhoh`t. (Vhh [hlls Cerkg Be`a, @.E. v Oerfmig`h, 39 ED6d 2>4, 25> Q2d Dhpt 2>>9_1

Le Vellh Be`a @etl. Ess` v Emher`, 89 ED6d et 952.) I`dhhd, wmhrh tmh plei`ticc "hsteblismQhs_

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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its ste`di`k es tmh mgldhr gc tmh `gth e`d ogrtkekh by pmysifel dhlivhry prigr tg fgooh`fhoh`t

gc tmh eftig`," it is u``hfhssery tg "eddrhss tmh velidity gc Qe_ subshquh`tly hxhfuthd dgfuoh`t

essik`i`k tmh ogrtkekh e`d `gth." (Vhh Dhutsfmh Be`a @et. Trust Fg. v [melh`, 2>56 @Y Vlip

Gp 4;;>.) Vufm prggc oust fg`sist gc "ceftuel dhteils es tg tmh pmysifel dhlivhry gc tmh `gth."

(Vhh Mgohfgoi`ks Ci`e`fiel, LLF v Kuldi, 2>56 @Y Vlip Gp 8>4=1Dhutsfmh Be`a @et. Trust

Fg. v Mellhr, 5>> ED6d et 3=21MVBF Be`a XVE v Mhr`e`dhz, 92 ED6d et =441DhutsfmhBe`a @et. Trust Fg. v Bhr`htt, == ED6d et 36= Q"ceftuel dhteils fg`fhr`i`k wmh` tmh plei`ticc

rhfhivhd pmysifel pgsshssig` gc tmh `gth"_1 shh elsg Eurgre Lge` Vhrvifhs, LLF v [hisbluo, =8

ED6d et 5>91 X.V. Be`a, @.E. v Fgllyogrh, 3= ED6d et ;84.)

^mysifel dhlivhry gc e `gth is succifih`t es e tre`schr "witmgut e writth` i`struoh`t gc

essik oh`t" (shh Clyhr v Vullive`, 2=4 ED 39;, 399 Q5st Dhpt 5984_), gr, i`dhhd "witmgut e`y

writth` wgrds gc tre`schr et ell" (shh Bleah v [hidh`, 295 @Y 564, 569 Q5946_.) But, ekei ,

"dhlivhry" rhquirhs "vglu`tery tre`schr gc pgsshssig`" (shh@YXFF 5-2>5 Q54_.) Ogrhgvhr,u`dhr Rhvishd Ertiflh 6, "E` i`struoh`t is tre`schrrhd wmh` it is dhlivhrhd . . . cgr tmh purpgsh gc

kivi`k tg tmh phrsg` rhfhivi`k dhlivhry tmh rikmt tg h`cgrfh tmh i`struoh`t" (shh Rhvishd XFF

6-2>6 Qe_.) Eltmgukm tmh quelicifetig` is `gt cgu`d i` @hw Ygra's Ertiflh 6, wmifm fg`tei`s `g

dhci`itig` gc "tre`schr," tmis Fgurt mes shh` `gtmi`k tmet wguld sukkhst tmet sufm e purpgsh `hhd

`gt effgope`y tmh "vglu`tery tre`schr gc pgsshssig`" (shh@YXFF 5-2>5 Q54_.) [mh` tmhrh is

`g essik`oh`t gr gtmhr "writth` wgrds gc tre`schr" (shh Bleah v [hidh`, 295 @Y et 569),

hvidh`fh gc sufm purpgsh oikmt hesily bh cgu`d i` tmh `eturh e`d strufturh gc tmh gvhrell gr

rhlethd tre`seftig`(s) bhtwhh` tmh tre`schrgr e`d tmh tre`schrhh.

^hrmeps e ogrh diccifult quhstig` is wmhtmhr e` essik`oh`t elg`h, i.h., witmgut pgsshssig`

gc tmh `gth, is succifih`t tg fg`stituth e "tre`schr," sg es tg ellgw tmh tre`schrhh tg h`cgrfh it. Es

just Q*=_`gthd, Rhvishd Ertiflh 6 wguld rhquirh dhlivhry gc tmh `gth (shh Rhvishd XFF 6-2>6

Qe_), e`d, es `gthd ebgvh, wguld ellgw h`cgrfhoh`t gc e `gth witmgut pgsshssig` g`ly wmh` tmh

`gth is lgst, stglh`, gr dhstrgyhd, gr wmhrh it mes bhh` peid (shh Rhvishd XFF 6>5 Qiii_.) Rhfh`t

Vhfg`d Dhpertoh`t gpi`ig`s fe` bh rhed es mgldi`k tmet tmh essik`oh`t elg`h, witmgut

pgsshssig`, is succifih`t. (Vhh KR^ Lge` LLF v Teylgr 98 ED6d et 55;41Dhutsfmh Be`a Trust

Fg. v Fgdig, 94 ED6d 5>4>, 5>45 Q2d Dhpt 2>52_.)

Tmis Fgurt is ewerh gc g`ly g`h epphlleth dhfisig` tmet mes rhfgk`izhd e` essik`hh's

h`titlhoh`t tg h`cgrfh e `gth wmilh hxprhssly rhfgk`izi`k fg`ti`uhd pgsshssig` gc tmh `gth by

tmh essik`gr. I` tmet fesh, tmh plei`ticc med bhh` essik`hd g`ly g`h-tmird gc tmh essik gr's i`thrhst

u`dhr tmh `gth1 tmh plei`ticc wes phroitthd tg suh cgr mis i`thrhst bhfeush mh med jgi`hd mis

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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"fg-essik hhs" i` tmh eftig`. (Vhh Arg`oe` v ^elo Okot. Essgfs. Ltd. ^smp., 2;3 ED2d 66=,

66=-69 Q5st Dhpt 2>>>_.)

Hxfhpt, phrmeps, wmhrh tmhrh is e fgoog` ekh`t, it is `gt pgssiblh cgr ogrh tme` g`h phrsg`

tg mevh pgsshssig` gc e` i`struoh`t, wmifm wguld hxplei` wmy g`ly e` h`tirh i`struoh`t fe` bh

`hkgtiethd (shh@YXFF 6-2>2 Q6_1Mhwhtt v Oeri`h Oidle`d Be`a, @.E., =3 ED2d 236, 23;

Q2d Dhpt 59=2_.) @g`htmhlhss, tmh rhsult i` tmh "fg-essik`hhs" fesh is suppgrthd byBleah v

[hidhr (295 @Y 564, 56= Q5946_), eltmgukm, i` tmet fesh, tmh Fgurt gc Epphels cgu`d "et lhest e

fg`struftivh dhlivhry" tg tmh tmrhh i`dgrshhs (shh id.et 569.)

Rhquiri`k pgsshssig` gc tmh `gth hvh` wmhrh tmhrh is e` essik`oh`t wguld shrvh tmh

iopgrte`t purpgsh gc prgthfti`k tmh oeahr gc tmh `gth wmg peys e` essik`hh crgo e subshquh`t

fleio by e mgldhr i` duh fgursh (shh@YXFF 6-6>8), ekei st wmgo e dhch`sh gc disfmerkh

upg` peyoh`t is `gt eveileblh (shh@YXFF 3>2, 3>6.) (Vhh elsg @etig`el Be`a gc Bey

Ridkh v Elbhrs, 244 ED 52;, 52= Q2d Dhpt 5968_1Ogrrisg` v Vfmohoe`, 533 ED 234, 233

Q5st Dhpt 5958_.) Tg tmh fg`trery, ellgwi`k rhfgvhry g` e` essik`oh`t witmgut pgsshssig` wguld

bh i`fg`sisth`t witm furrh`t Ertiflh 6 prgthftig`s tmet erh iopgshd wmh` h`cgrfhoh`t is sgukmt

gc e lgst, dhstrgyhd gr stglh` i`struoh`t (shh@YXFF 6-=>41 Vills v [emhhd H`trs., 286

ED2d 685, 682 Q5st Dhpt 599=_.)

Tmh quhstig` is sgohwmet eddrhsshd i` tmh Gccifiel Fgooh`t tg Rhvishd Ertiflh 6, 6-2>61

Tre`schr gc I`struoh`t1 Rikmts Efquirhd By Tre`schr:

"Tmh rikmt tg h`cgrfh e` i`struoh`t e`d gw`hrsmip gc tmh i`struoh`t erh twg dicchrh`t

fg`fhpts . . . Gw`hrsmip rikmts i` i`struoh`ts oey bh dhthroi`hd by pri`fiplhs gc tmh lew gc

prgphrty, i`dhph`dh`t gc Ertiflh 6, wmifm dg `gt dhph`d upg` wmhtmhr tmh i`struoh`t wes

tre`schrrhd u`dhr Vhftig` 6-2>6. Ogrhgvhr, e phrsg` wmg mes e` gw`hrsmip rikmt i` e`

i`struoh`t oikmt `gt bh e phrsg` h`titlhd tg h`cgrfh tmh i`struoh`t. Cgr hxeoplh, suppgsh ] is

tmh gw`hr e`d mgldhr gc e` i`struoh`t peyeblh tg ]. ] shlls tmh i`struoh`t tg Y but is u`eblh tg

dhlivhr ioohdieth pgsshssig` tg Y. I`sthed, ] sik`s e dgfuoh`t fg`vhyi`k ell gc ]'s rikmt, titlh,e`d i`thrhst i` tmh i`struoh`t tg Y. Eltmgukm tmh dgfuoh`t oey bh hcchftivh tg kivh Y e fleio tg

gw`hrsmip gc tmh i`struoh`t, Y is `gt e phrsg` h`titlhd tg h`cgrfh tmh i`struoh`t u`til Y gbtei`s

pgsshssig` gc tmh i`struoh`t. @g tre`schr gc tmh i`struoh`t gffurs u`dhr Vhftig` 6-2>6 (e) u`til

it is dhlivhrhd tg Y." Q*9_(Gccifiel Fgooh`t 5 tg Rhvishd XFF 6-2>6.)

Tg ellgw e` essik`hh tg suh witmgut pgsshssig` gc tmh `gth, tmhrhcgrh, wguld bh i`fg`sisth`t

witm Rhvishd Ertiflh 6, e`d put @hw Ygra gut-gc-sthp witm tmh 49 steths tmet mevh edgpthd tmh

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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rhvisig`, i`fludi`k, i` pertifuler, e fg`fhptig` gc "tre`schr" es "dhlivhrQy_ by e phrsg` gtmhr tme`

its issuhr cgr tmh purpgsh gc kivi`k tg tmh phrsg` rhfhivi`k dhlivhry tmh rikmt tg h`cgrfh tmh

i`struoh`t" (shh Rhvishd XFF 6-2>6 Q5_.) Tmet oissthp, mgwhvhr, ic sufm it is, mes epperh`tly

elrhedy bhh` teah`. Tmh feshlew qugthd e`d fithd ebgvh flherly spheas, i` tmh disju`ftivh, gc

ste`di`k gbtei`hd by "essik oh`t" gr "pmysifel dhlivhry" gc tmh `gth bhcgrh fgooh`fhoh`t gc

tmh eftig`1 ic "essik`oh`t" oust bh effgope`ihd by pgsshssig` gc tmh `gth, tmh` it shhos littlhdicchrh`t crgo "pmysifel dhlivhry." I`dhhd, wmhrh pgsshssig` bhcgrh fgooh`fhoh`t fguld bh

hsteblismhd, witm e purpgsh tg ellgw tmh tre`schrhh tg h`cgrfh tmh i`struoh`t, tmh essik`oh`t

wguld eppher suphrclugus i` ogst feshs. Tmhrh is `g hvidh`fh tmet tmh Vhfg`d Dhpertoh`t mes

bhh` usi`k tmh thros sy`g`yogusly.

G`h oikmt rhfg`filh tmhsh fg`clifti`k pri`fiplhs e`d pglifihs tg e` hxth`t by teai`k tmh

Vhfg`d Dhpertoh`t et its wgrds, e`d ci`di`k "ste`di`k" tg fgooh`fh e`d prgshfuth e` eftig` tg

h`cgrfh e `gth (e`d rhlethd ogrtkekh) witm prggc g`ly gc e` essik`oh`t bhcgrh fgooh`fhoh`t,but tg rhquirh surrh`dhr gc tmh `gth et judkoh`t, hitmhr ecthr triel gr effhlhrethd by suooery

judkoh`t (shh F^LR 6252) gr judkoh`t by dhceult (shh F^LR 6258.) ^h`di`k curtmhr

flericifetig` crgo tmh Vhfg`d Dhpertoh`t, tmis Fgurt will edgpt tmet epprgefm. (Vhh @etig`el

Be`a gc Bey Ridkh v Elbhrs, 244 ED et 52=.)

Ci`elly es tg tmh rhquirhoh`ts cgr "ste`di`k," u`dhr @hw Ygra's Ertiflh 6, "Tre`schr gc e`

i`struoh`t vhsts i tmh tre`schrhh sufm rikmts es tmh tre`schrgr mes tmhrhi`" (shh@YXFF 6-2>5

Q5_1 shh elsg Rhvishd XFF 6-2>6 Qb_.) Tmh fgoog`-lew "essik oh`t" creohwgra utilizhd by@hw Ygra fgurts is fg`sisth`t. (Vhh [e`k`hr v Krioo, 539 @Y 425, 42= Q59>2_1 Kgsmh` @et.

Be`a v Bi`kmeo, 55= @Y 649, 684 Q5=9>_1Ohuhr v ^mh`ix @et. Be`a, 94 ED 665, 664-69 Q5st

Dhpt 59>4_, ecc'd 5=6 @Y 855 Q59>8_.) "It is hlhoh`tery e`fih`t lew tmet e` essik`hh `hvhr

ste`ds i` e bhtthr pgsitig` tme` mis essik gr." (Oetthr gc I`thr`etig`el Ribbg` Oills QErje`

Ribbg`s, 63 @Y2d 525, 523 Q59;8_1 shh elsg @hw Ygra & ^rhsbyt. Mgsp. v Fgu`trywidh I`s.

Fg., 5; @Y6d 8=3, 892 Q2>55_.)

Tmhrh is `gtmi`k i` rhfh`t Vhfg`d Dhpertoh`t ogrtkekh cgrhflgsurh feshlew tmet fme`khs

tmis. (Vhh Be`a gc @hw Ygra v Vilvhrbhrk, =3 ED6d et 2=2.) [mhrh e plei`ticc, tmhrhcgrh, is `gt e

mgldhr gc tmh `gth, but hsteblismhs "ste`di`k" pursue`t tg tre`schr, hitmhr by essik`oh`t gr

dhlivhry, tmh plei`ticc oust smgw tmet its tre`schrgr med tmh rikmt tg h`cgrfh tmh `gth bhcgrh

tre`schr.

I` suo, i` tmh usuel fesh, e plei`ticc mes "ste`di`k" tg prgshfuth e ogrtkekh cgrhflgsurh

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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eftig` wmhrh, et tmh tioh tmh eftig` is fgooh`fhd: (5) tmh plei`ticc is tmh mgldhr gc tmh `gth (shh

@YXFF 5-2>5 Q2>_)1 gr(2) tmh plei`ticc mes pgsshssig` gc tmh `gth by dhlivhry (shh@YXFF

5-2>5Q54_), crgo e phrsg` h`titlhd tg h`cgrfh it, cgr tmh purpgsh gc kivi`k tmh plei`ticc tmh rikmt tg

h`cgrfh it1 gr(6) tmh plei`ticc mes bhh` essik`hd tmh `gth, by e phrsg` h`titlhd tg h`cgrfh it, cgr

tmh purpgsh gc Q*5>_kivi`k tmh plei`ticc tmh rikmt tg fgllhft tmh dhbt hvidh`fhd by tmh `gth, e`d

tmh plei`ticc th`dhrs tmh `gth et tmh tioh gc e`y judkoh`t.

Mhrh, ^lei`ticc Tmh Be`a gc @hw Ygra Ohllg` mes `gt hsteblismhdprioe cefih witm

hvidh`fh i` edoissiblh cgro hitmhr essik oh`t gr dhlivhry gc tmh @gth crgo e mgldhr, succifih`t tg

ellgw ^lei`ticc tg h`cgrfh tmh @gth e`d rhlethd Ogrtkekh. Tmh g`ly "hvidh`fh" gc essik oh`t gc

tmh @gth tg ^lei`ticc erh hxfhrpts crgo e ^ggli`k e`d Vhrvifi k Ekrhhoh`t fg`sisti`k gc e titlh

pekh, e teblh gc prgvisig`s e`d hxmibits, e`d 55 pekhs gc prgvisig`s, i`difeti`k e dgfuoh`t gc

ogrh tme` ;3 pekhs. Tmhrh erh `g sik`eturh pekhs, e`d, tmhrhcgrh, `g eutmh`tifetig` gc tmh

dgfuoh`t by efa`gwlhdkhd sik eturhs (shh ^ri`fh, Rifmerdsg` g` Hvidh`fh 9-5>5 QCerrhll55tm Hd_1 Vthi` v Dguaes, ;= ED6d 5>23, 5>29 Q2d Dhpt 2>52_1@YFTL 599=-2 Trust v

Ve`tiekg, 6> ED6d 8;2, 8;6 Q2d Dhpt 2>>3_ Q"e priveth dgfuoh`t gcchrhd tg prgvh tmh

hxisth`fh gc e velid fg`treft fe``gt bh edoitthd i`tg hvidh`fh u`lhss its eutmh`tifity e`d

kh`ui`h`hss erh cirst hsteblismhd"_.)

Hvh` ik gri`k tmh hvidh`tiery tmrhsmgld, tmh prgvisig` mhedhd "Fg`vhye`fh gc Ogrtkekh

Lge`s tg Trusthh" steths tmet "Qt_mh Dhpgsitgr . . . shlls, tre`schrs e`d essik`s tg tmh Trust witmgut

rhfgursh ell its rikmt, titlh e`d i`thrhst i` e`d tg . . . tmh Ogrtkekh Lge`s idh`ticihd i` tmhOgrtkekh Lge` Vfmhdulh," but `g Ogrtkekh Lge` Vfmhdulh is prgvidhd, e`d, i` e`y hvh`t, tmh

"Dhpgsitgr" is Vtrufturhd Essht Ogrtkekh I`vhstoh`ts II I f., wmifm is `gt smgw` tg mevh med

e`y pgwhr gr eutmgrity tg tre`schr tmh subjhft @gth.

Tmh Ekrhhoh`t gc Rhsglutig` e`d Essuoptig` bhtwhh` J^ Ogrke` Fmesh Be`a, @etig`el

Essgfietig` e`d Tmh Be`a gc @hw Ygra prgvidhs tmet J^ Ogrke` es Rhsik`i`k Trusthh "essik`s,

tre`schrs, dhlivhrs e`d fg`ciros tg QTmh Be`a gc @hw Ygra es_ Vuffhssgr Trusthh ell rikmt, titlh

e`d i`thrhst i` e`d tg hefm gc tmh Ekrhhoh`ts" listhd g` e Vfmhdulhd E e`d "ell rikmts, pgwhrs

e`d trusts gc tmh Rhsik`i`k Trusthh, es trusthh gr gtmhrwish, u`dhr hefm gc tmh Ekrhhoh`ts," but

`gwmhrh g` Vfmhdulh E is tmh subjhft @gth gr Ogrtkekh listhd, `gr is tmhrh e`y smgwi`k tmet e`y

listhd Ekrhhoh`t tre`schrrhd tmh @gth crgo J^ Ogrke` tg ^lei`ticc. (Elsg, g`ly g`h gc tmh twg

sik eturhs tg tmh Ekrhhoh`t gc Rhsik`etig` e`d Essuoptig` is efa`gwlhdkhd.)

Tmh eccidevit gc E`khle Cryh steths tmet, "Qt_g ohogrielizh tmh tre`schr gc tmh ogrtkekh lge`

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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tg ^lei`ticc, es suffhssgr trusthh, e writth` essik`oh`t . . . wes subshquh`tly hxhfuthd g` gr ebgut

Ju`h 5;, 2>>9" (shh 52), but, es stethd ebgvh, tmh Essik oh`t gc Ogrtkekh tg ^lei`ticc by

OHRV, hvh` ic hcchftivh, seys `gtmi`k ebgut tmh @gth, e`d e tre`schr gc e ogrtkekh dghs `gt ferry

tmh u`dhrlyi`k `gth (shh Be`a gc @hw Ygra v Vilvhrbhrk, =3 ED6d et 2=>.)

Es tg dhlivhry e`d pgsshssig`, tmh eccidevit gc E`khle Cryh steths tmet "[hlls Cerkg's

rhkulerly oei`tei`hd rhfgrds . . . rhclhft tmet bgtm tmh Ogrtkekh e`d @gth whrh pmysifelly

dhlivhrhd tg [hlls Cerkg . . . prigr tg fgooh`fhoh`t gc tmis eftig` . . . Qe`d_ curtmhr rhclhft tmet

[hlls Cerkg . . . wes i` pmysifel pgsshssig` gc tmh @gth e`d Ogrtkekh et tmh tioh tmis eftig` wes

fgooh`fhd," but elsg steths tmet "^lei`ticc is i pgsshssig` gc tmh ^rgoissgry @gth, . . . duly

i`dgrshd tg J^ Ogrke` Fmesh Be`a, @E es Trusthh" (shh 55.) Tmhrh erh `g dhteils es tg tmh

dhlivhry tg [hlls Cerkg, e`d, ic tmhrh wes e subshquh`t dhlivhry tg ^lei`ticc, wmifm wguld hxplei`

tmh epperh`t i`fg`sisth`fy, it Q*55_is `gt dhsfribhd.

Ogrhgvhr, tmh eccie`t, E`khle Cryh, dghs `gt esshrt e`y phrsg`el a`gwlhdkh gc dhlivhry tg,

gr pgsshssig` by, hitmhr [hlls Cerkg gr ^lei`ticc. Vmh dghs `gt ettefm gr dhsfribh e`y gc [hlls

Cerkg's "rhkulerly oei tei`hd rhfgrds" g` wmifm smh rhlihs, `gr rh`dhr tmho edoissiblh es

hvidh`fh. (Vhh J^ Ogrke` Fmesh, @.E. v REDV Krgup, I`f., == ED6d ;33, ;3; Q2d Dhpt

2>55_1MVBF Be`a XVE, @.E. v Bhtts, 3; ED6d ;68, ;63 Q2d Dhpt 2>>9_1 X`icu`d FFR

^ert`hrs v Ygu`koe`, =9 ED6d 56;;, 56;;-;= Q4tm Dhpt 2>55_1Rhiss v Rgedmgush Rhst., ;>

ED6d 5>25, 5>24 Q2d Dhpt 2>5>_1Lgdetg v Krhymewa @grtm Eohrife, LLF, 69 ED6d 494,

498 Q2d Dhpt 2>>;_1 [mitcihld v Fity gc @hw Ygra, 53 Oisf 6d 5558, QE_, 2>>; @Y Vlip Gp85466 QX_ QVup Ft, Ai`ks Fgu`ty 2>>;_1 ecc'd 4= ED6d ;9= Q2d Dhpt 2>>=_.) Vmh dghs `gt

steth tmet tmh "rhkulerly oei`tei`hd rhfgrds" smgw dhlivhry gc tmh @gth by J^ Ogrke` Fmesh

Be`a (gr e`yg`h hlsh), e`d, es `gthd ebgvh, tmhrh is `g hvidh`fh tmet J^ Ogrke` Fmesh Be`a

hvhr med pgsshssig` gc tmh @gth.

Eltmgukm ^lei`ticc's ceilurh tg hsteblismprioe cefih tmet it is h`titlhd tg h`cgrfh tmh @gth

e`d Ogrtkekh is h`gukm tg rhquirh dh`iel gc its ogtig` cgr suooery judkoh`t ekei`st tmh Dhe`h

Dhch`de`ts (shh Eurgre Lge` Vhrv., LLF v [hisbluo, =8 ED6d et 5>=-5>), dh`iel gc suooery

judkoh`t is werre`thd g` gtmhr krgu`ds. Tmh hvidh`tiery dhcifih`fihs i tmh eccidevit gc E`khle

Cryh, `gthd ebgvh witm rhsphft tg dhlivhry e`d pgsshssig` gc tmh @gth, i`chft es whll gtmhr

hlhoh`ts gc ^lei`ticc's fleio, i`fludi`k dhceult, effhlhretig` gc tmh lge`, e`d tmh eogu`t duh.

Vhftig` 22 gc tmh Ogrtkekh steths tmet "Lh`dhr oey rhquirh Ioohdieth ^eyoh`t i` Cull . . .

g`ly ic ell Qsphficihd_ fg`ditig`s erh oht," i`fludi`k tmet "Lh`dhr sh`ds . . . e `gtifh" tmet

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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fgoplihs witm tmh Vhftig`. Kivi`k tmh rhquisith `gtifh gc dhceult is e fg`ditig` prhfhdh`t tg

effhlhretig`, wmifm is e rhquirhoh`t cgr shhai`k tmh hquiteblh rhohdy gc cgrhflgsurh. (Vhh MVBF

Otkh. Fgrp. QXVE_ v Khrbhr, 5>> ED6d 933, 933-3; Q2d Dhpt 2>52_1 [hlls Cerkg Be`a, @.E.

v Burah, 94 ED6d 9=>, 9=2-=4 Q2d Dhpt 2>52_1K.H. Fepitel Ogrtk. Vhrvs. v Oittlhoe`, 26=

ED2d 4;5, 4;5 Q2d Dhpt 599;_1 Oght, II, I`f. v OfFertmy, 229 ED2d =;3, =;; Q6d Dhpt

5993_1

Fitiogrtkekh, I`f. v Silletgrg-Kuzoe`, 2>>9 @Y VlipGp 6>9=6 QX_, * 4 QVup Ft, Vuccgla

Fgu`ty 2>>9_1 [hitzhl v @grtmhr` Kglc, I`f., 5= Oisf 6d 5564 QE_, 2>>= @Y Vlip Gp 8>6>8

QX_, * 4- * 3 QVup Ft, Livi`kstg` Fgu`ty 2>>=_1 UOB Mgldi`ks, LLF v Hsfeve Brgtmhrs, 55

Oisf 6d 5>3> QE_, 2>>3 @Y Vlip Gp 8>622 QX_, * 6 QVup Ft, Brg`x Fgu`ty 2>>3_1

Oe`ucefturhrs & Tredhrs Trust Fg. v Agr`kgld, 532 Oisf 2d 339 QVup Ft, Rgfale`d Fgu`ty

5994_.)

^lei`ticc suboits `g prggc gc shrvifh gc tmh Dhfhobhr 25, 2>>= `gtifh gc dhceult. (Vhh

MVBF Otkh. Fgrp. QXVE_ v Khrbhr, 5>> ED6d et 93;1@grwhst Be`a Oi``hsgte, @.E. v

Veblgcc, 29; ED2d ;22, ;26 Q2d Dhpt 2>>2_1 shh elsg @gfhlle v Cgrt Dherbgr` Lich I`s. Fg. gc

@Y, 99 ED6d =;;, =;= Q2d Dhpt 2>52_1Lh`fm`hr v Fmesi`, 8; ED6d 326, 324 Q2d Dhpt 2>>=_1

Du`h Dhfa Gw`hrs Fgrp. v JJ & ^ Essgf. Fgrp., 64 ED6d 826, 824 Q2d Dhpt 2>>3_1

Rhsidh`tiel Mgldi`k Fgrp. v Vfgttsdelh I`s. Fg., 2=3 ED2d 3;9, 3=> Q2d Dhpt 2>>5_.) Curtmhr,

tmh Dhfhobhr 25, 2>>= `gtifh gc dhceult wes kivh` by e` h`tity tmet is `gt tmh "Lh`dhr," `gr

smgw` tg mevh bhh` idh`ticihd tg tmh ogrtkekgrs es eutmgrizhd tg eft cgr tmh Lh`dhr. (Vhh HOF

Otkh. Fgrp. v Vuerhz, 49 ED6d 892, 896 Q2d Dhpt 2>>=_1shh elsg UOB Mgldi`ks, LLF v

Hsfevh Q*52_Brgtmhrs, 2>>3 @Y Vlip Gp 8>622 QX_, et * 61Oe`ucefturhrs e`d Tredhrs Trust

Fg. v Agr`kgld, 532 Oisf 2d 339.)

Tg tmh hxth`t tmet ^lei`ticc's ogtig` shhas judkoh`t by dhceult ekei`st Dhch`de`ts gtmhr

tme` tmh Dhe`h Dhch`de`ts, es stethd ebgvh ^lei`ticc is `gt rhquirhd tg smgw its "ste`di`k." Tmh

gtmhr `gthd dhcifih`fihs i` ^lei`ticc's smgwi`k es ekei`st tmh Dhe`h Dhch`de`ts, mgwhvhr,

prhfludh e ci`di`k tmet it mes smgw` "prggc gc tmh cefts fg`stituti`k tmh fleio" (shh F^LR 6258

Qc_) es ekei`st tmh gtmhr Dhch`de`ts tg tmh hxth`t tmet ^lei`ticc's fleios ekei`st tmgsh Dhch`de`ts

dhph`d upg` cgrhflgsurh gc tmh Ogrtkekh. I`dhhd, ^lei`ticc oeahs g smgwi`k et ell es ekei`st

e`y gc tmh gtmhr Dhch`de`ts.

Es tg "prggc gc tmh cefts fg`stituti`k tmh . . . dhceult" (shh id.), tmhrhsphftivh eccidevits gc

shrvifh ceil tg smgw prgphr shrvifh g` dhch`de`t Ogrtkekh Hlhftrg`if Rhkistretig` Vysthos, I`f.

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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pursue`t tg F^LR 655 (e) (5), gr upg` dhch`de`ts @hw Ygra Fity H`virg`oh`tel Fg`trgl Bgerd

gr @hw Ygra Fity Tre`sit Edjudifetig` Burheu pursue`t tg F^LR 655 (e) (2). Vhrvifh upg`

dhch`de`t @hw Ygra Ohrfme`ts ^rgthftivh Fg., I`f. by shrvifh upg` tmh Vhfrhtery gc Vteth

pursue`t tg F^LR 655 (e) (5) e`d Busi`hss Fgrpgretig` Lew 6>3 wguld bh epprgprieth ic

Dhch`de`t is e fgrpgretig`, but `g hvidh`fh is suboitthd tmet it is, e`d, i` e`y hvh`t, tmhrh is `g

shrvifh gc tmh edditig`el shrvifh rhquirhd by F^LR 6258 (k).

^lei`ticc elsg suboits e` eccidevit gc shrvifh upg` Ly`` Dhe`h es "Jgm` Dgh" by dhlivhry tg

dhch`de`t "Ferl Dhe`h (Musbe`d)," but tmh eccidevit dghs `gt smgw tmh rhquirhd oeili`k i`

effgrde`fh witm F^LR 6>= (2). I` e`y hvh`t, tmh `g`-oilitery eccidevit, i`fludhd es pert gc tmh

eccidevit gc shrvifh, is prhoeturh. (Vhh Hoikre`t Otkh. Fgrp. I`f. v De`ihls, 2>5> @Y Vlip Gp

62;2> QX_, * 4- * 8 QVup Ft, @Y Fgu`ty 2>5>_1DLJ Ogrtkekh Fepitel, I`f. v Lewrh`fh, 2>>9

@Y Vlip Gp 6>884 QX_, * 3 QVup Ft, @esseu Fgu`ty 2>>9_1 Vu`sht 6 Rhelty v Bggtm, 52 Oisf

6d 55=4 QE_, 2>>3 @Y Vlip Gp 85445 QX_, * 6 QVup Ft, Vuccgla Fgu`ty 2>>3_ QVkrgi, J._1 X.V.Be`a @E v Fgexuo, 2>>6 @Y Vlip Gp 856=4 QX_, * 2- * 6 QVup Ft, [hstfmhsthr Fgu`ty 2>>6_.)

Tmh Fgurt `gths tmet, eltmgukm `g Dhch`de`t gppgshd ^lei`ticc's ogtig`, ^lei`ticc is `gt

rhlihvhd gc its burdh` gc oeai`k e succifih`t smgwi`k cgr suooery judkoh`t(shh Yg`ahrs Evh.

Dgdkh, I`f. v BZ Rhsults, LLF, 98 ED6d ;;4, ;;4-;8 Q5st Dhpt 2>>6_ Q"e` u`gppgshd

suooery judkoh`t ogtig` will bh dh`ihd upg` e ogve`t's ceilurh tg hsteblism prioe cefih

h`titlhoh`t tg suooery judkoh`t gr wmh` tmh hvidh`fh frheths e quhstig` gc ceft"_1 gr cgr

judkoh`t by dhceult (shh Vuphrigr Dh`tel Ferh, ^.F. v Mgccoe`, =5 ED6d 362, 364 Q2d Dhpt2>55_ Q"Tmhrh is `g oe`detgry oi`isthriel duty tg h`thr e dhceult judkoh`t ekei`st e dhceulti`k

perty"_ Qi`thr`el qugtetig` oeras e`d fitetig` goitthd_.)

Ci`elly, ^lei`ticc ogvhs tg eoh`d tmh feptig` (e`d, prhsuoebly tg eoh`d tmh Fgoplei`t tg

fg`cgro) i` twg rhsphfts: tg substituth cgr tmh `eoh gc tmh plei`ticc "Tmh Be`a gc @hw Ygra

Ohllg` c/a/e Tmh Be`a gc @hw Ygra, es Trusthh cgr Vtrufturhd Essht Ogrtkekh I`vhstoh`ts II

I`f. Bher Vthr`s ELT-E Trust, Ogrtkekh ^ess-Tmrgukm Fhrticifeths Vhrihs 2>>8-;"1 e`d tg

substituth "Ly`` Q*56_Dhe`h" cgr dhch`de`t "Jgm` Dgh." Es tg tmh letthr, fgu`shl gcchrs `g

hxple`etig` i` hitmhr mhr ecciroetig` gr tmh ohogre`duo gc lew, e`d tmh Fgurt will `gt

sphfuleth.

Es tg tmh idh`ticifetig` gc ^lei`ticc, fgu`shl hxplei`s tmet Tmh Be`a gc @hw Ygra Ohllg` "is

tmh prgphr plei`ticc i` its fepefity es Trusthh cgr tmh Trust, wmifm . . . is tmh mgldhr gc tmh Dhe`hs'

lge`" (shh ^lei`ticc's Ohogre`duo et 58.) But tmh eccidevit gc E`khle Cryh steths, "[hlls Cerkg,

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2

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es fustgdie` cgr e`d g` bhmelc gc tmh Trust, is tmh furrh`t mgldhr gc tmh Ogrtkekh lge`, pursue`t

tg tmh ^VE" (shh 56.) Vi`fh e phrsg` fe``gt bh e "mgldhr" gc e `hkgtieblh i`struoh`t witmgut

pgsshssig`, bgtm stethoh`ts fe``gt bh lithrelly effureth. It oey bh tmet ^lei`ticc dghs `gt ush

"mgldhr" es it is u`dhrstggd i` tmh lew gc `hkgtieblh i`struoh`ts, but tmh thro e`d fg`fhpt

"mgldhr" is tgg iopgrte`t tg "ste`di`k" e`d e plei`ticc's ebility tg oei`tei` tmis eftig` cgr tmhrh tg

bh risa gc curtmhr fg`cusig`.

^lei`ticc's ogtig` is dh`ihd, witm lhevh tg rh`hw witm pephrs tmet furh, gr gtmhrwish rhsglvh,

tmh dhcifih`fihs `gthd ebgvh.

July 55, 2>56WWWWWWWWWWWWWWWWWWW

Jefa O. Betteklie

Justifh, Vuprhoh Fgurt

gc @.Y. Ohllg` v Dhe`h (2>56 @Y Vlip Gp 26224) mttp://www.fgurts.steth.`y.us/rhpgrthr/6dshrihs/2>56/2>56W2