8/13/2019 Schwartzwald v. FHLMC

1/15

S^jthi t`hs fphjhfj eppners hj t`n F`hf Faahghei Rnpfrts emvejgn s`nnts, ht ley bn ghtnm es

Anm. @fln Ifej Lton. Gfrp. v. Wg`wertzweim,Wihp Fphjhfj Jf. 2452-F`hf->45?.\

JF]HGN

]`hs sihp fphjhfj hs subkngt tf afrlei rnvhshfj bnafrn ht hs pubihs`nm hj

ej emvejgn s`nnt fa t`n F`hf Faahghei Rnpfrts. Rnemnrs ern rnqunstnm

tf prflptiy jfthay t`n Rnpfrtnr fa Mnghshfjs, Wuprnln Gfurt fa F`hf,

1> Wfut` Arfjt Wtrnnt, Gfiulbus, F`hf =725>, fa ejy typforep`hgei fr

ft`nr afrlei nrrfrs hj t`n fphjhfj, hj frmnr t`et gfrrngthfjs ley bn

lemn bnafrn t`n fphjhfj hs pubihs`nm.

WIHT FTHJHFJ JF.2452-F@HF->45?

ANMNREI @FLN IFEJ LFR]OEON GFRTFRE]HFJ,ETTNIINN,v.

WG@_ER][_EIM N] EI.,ETTNIIEJ]W.

S^jthi t`hs fphjhfj eppners hj t`n F`hf Faahghei Rnpfrts emvejgn s`nnts,

ht ley bn ghtnm es Anm. @fln Ifej L ton. Gfrp. v. Wg`wertzweim,

Wihp Fphjhfj Jf. 2452-F`hf->45?.\

AfrngifsurnKurhsmhgthfjei espngts fa stejmhjoGhv.R. 5?(E)Kurhsmhgthfj

mntnrlhjnm es fa thln fa ahihjo suht.

(Jfs. 2455-5245 ejm 2455-5712Wublhttnm Eprhi =, 2452Mnghmnm

Fgtfbnr 75, 2452.)

ETTNEI arfl ejm GNR]HAHNMby t`n Gfurt fa Eppneis afr Ornnjn Gfujty,

Jf. 2454 GE =5, 58= F`hf Epp.7m 1==, 2455-F`hf-2105.

VVVVVVVVVVVVVVVVVV

FMFJJNII,K.

{ 5} Muejn ejm Kuihn Wg`wertzweim eppnei arfl e kumolnjt fa t`nWngfjm Mhstrhgt Gfurt fa Eppneis eaahrlhjo e mngrnn fa afrngifsurn njtnrnm hj

aevfr fa t`n Anmnrei @fln Ifej Lfrtoeon Gfrpfrethfj. Hj emmhthfj, t`n eppniietn

gfurt gnrthahnm t`et hts mnghshfj hj t`hs gesn gfjaihgts wht` mnghshfjs fa t`n Ahrst ejm

8/13/2019 Schwartzwald v. FHLMC

2/15

W^TRNLN GF^R] FA F@HF

2

Nho`t` Mhstrhgts fj t`n afiifwhjo hssun; Hj e lfrtoeon afrngifsurn egthfj, t`n

iegc fa stejmhjo fr e rnei perty hj hjtnrnst mnangt gej bn gurnm by t`n esshojlnjt fa

t`n lfrtoeon prhfr tf kumolnjt.

{ 2} Anmnrei @fln Ifej gfllnjgnm t`hs afrngifsurn egthfj bnafrn htfbtehjnm ej esshojlnjt fa t`n prflhssfry jftn ejm lfrtoeon sngurhjo t`n

Wg`wertzweims ifej. ]`n Wg`wertzweims lehjtehjnm t`et Anmnrei @fln Ifej

iegcnm stejmhjo tf sun. ]`n trhei gfurt orejtnm sullery kumolnjt hj aevfr fa

Anmnrei @fln Ifej ejm njtnrnm e mngrnn fa afrngifsurn. ]`n eppniietn gfurt

eaahrlnm, `fimhjo t`et Anmnrei @fln Ifej `em rnlnmhnm hts iegc fa stejmhjo w`nj

ht fbtehjnm ej esshojlnjt arfl t`n rnei perty hj hjtnrnst.{ 7} @fwnvnr, stejmhjo hs rnquhrnm tf hjvfcn t`n kurhsmhgthfj fa t`n

gfllfj pines gfurt, ejm t`nrnafrn ht hs mntnrlhjnm es fa t`n ahihjo fa t`n

gflpiehjt. ]`us, rngnhvhjo ej esshojlnjt fa e prflhssfry jftn ejm lfrtoeon

arfl t`n rnei perty hj hjtnrnst subsnqunjt tf t`n ahihjo fa ej egthfj but prhfr tf t`n

njtry fa kumolnjt mfns jft gurn e iegc fa stejmhjo tf ahin e afrngifsurn egthfj.

{ =} Eggfrmhjoiy, t`n kumolnjt fa t`n gfurt fa eppneis hs rnvnrsnm, ejmt`n geusn hs mhslhssnm.

Aegts ejm Trfgnmurei @hstfry

{ >} Hj Jfvnlbnr 2441, Muejn ejm Kuihn Wg`wertzweim purg`esnm e`fln hj Pnjhe, F`hf, ejm rngnhvnm e lfrtoeon ifej arfl Inoegy Lfrtoeon hj t`n

elfujt fa $2>5,2>4. ]`ny nxngutnm e prflhssfry jftn ejm e lfrtoeon orejthjo

Inoegy Lfrtoeon e sngurhty hjtnrnst hj t`n prfpnrty. Inoegy Lfrtoeon t`nj

njmfrsnm t`n prflhssfry jftn es peyebin tf _niis Aerof Bejc, J.E., ejm esshojnm

ht t`n lfrtoeon.

{ 1} Hj Wnptnlbnr 2440, Muejn Wg`wertzweim ifst `hs kfb et Bergf,Hjg., ejm t`n Wg`wertzweims lfvnm tf Hjmheje sf `n gfuim eggnpt e jnw pfshthfj.

]`ny gfjthjunm lechjo lfrtoeon peylnjts es t`ny trhnm tf snii t`n `fusn hj

Pnjhe, but t`ny wnjt hjtf mnaeuit fj Kejuery 5, 2448. Hj Lerg` 2448, _niis

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3/15

Kejuery ]nrl, 2452

7

Aerof eornnm tf ihst t`n prfpnrty afr e s`frt sein, ejm fj Eprhi 0, 2448, t`n

Wg`wertzweims njtnrnm hjtf e gfjtregt tf snii ht afr $2>8,844, wht` gifshjo snt afr

Kujn 0, 2448.

{ ?} @fwnvnr, fj Eprhi 5>, 2448, Anmnrei @fln Ifej LfrtoeonGfrpfrethfj gfllnjgnm t`hs afrngifsurn egthfj, eiinohjo t`et t`n Wg`wertzweims

`em mnaeuitnm fj t`nhr ifej ejm fwnm $2=>,40>.50 pius hjtnrnst, gfsts, ejm

emvejgns. Ht etteg`nm e gfpy fa t n lfrtoeon hmnjthayhjo t`n Wg`wertzweims es

bfrrfwnrs ejm Inoegy Lfrtoeon es injmnr, but mhm jft etteg` e gfpy fa t`n jftn,

giehlhjo t`et e gfpy fa St`n jftn\ hs gurrnjtiy ujevehiebin.

{ 0}

Kuihn Wg`wertzweim t`nj gfjtegtnm _niis Aerof ebfut t`nafrngifsurn gflpiehjt. W`n tnsthahnm, H wes tfim t`et ht wes stejmerm prfgnmurn

ejm mfjt wfrry ebfut ht bngeusn wn wnrn mfhjo e s`frt sein. ]`n

Wg`wertzweims mhm jft ejswnr t`n gflpiehjt.

{ 8} Fj Eprhi 2=, 2448, Anmnrei @fln Ifej ahinm wht` t`n gfurt e gfpyfa t`n jftn shojnm by t`n Wg`wertzweims hj aevfr fa Inoegy Lfrtoeon. ]`n ahjei

peon gerrhns e biejc njmfrsnlnjt by _niis Aerof piegnm ebfvn t`n njmfrsnlnjt

by Inoegy Lfrtoeon peyebin tf _niis Aerof.

{ 54} Fj Ley 5>, 2448, _niis Aerof esshojnm t`n jftn ejm lfrtoeon tfAnmnrei @fln Ifej, ejm Anmnrei @fln Ifej ahinm wht` t`n gfurt e gfpy fa t`n

esshojlnjt fj Kujn 5?, 2448. Ht t`nj lfvnm afr e mnaeuit kumolnjt ejm e

sullery kumolnjt, but t`n trhei gfurt mhsgfvnrnm t`et Anmnrei @fln Ifej `em

aehinm tf nstebihs` e g`ehj fa thtin bngeusn jf esshojlnjt fa t`n lfrtoeon arfl

Inoegy Lfrtoeon tf _niis Aerof eppnernm hj t`n rngfrm.

{ 55} Murhjo t`hs thln, nvnj t`fuo` ht `em esshojnm hts hjtnrnst hj t`njftn ejm lfrtoeon tf Anmnrei @fln Ifej, _niis Aerof gfjthjunm mhsgusshjo e

s`frt sein fa t`n prfpnrty wht` t`n Wg`wertzweims, but mnieys hj t`hs prfgnss

nvnjtueiiy geusnm t`n Wg`wertzweims buynr tf rnsghjm t`n faanr. Fj Mngnlbnr

5=, 2448, t`n trhei gfurt orejtnm t`n Wg`wertzweims inevn tf ahin ej ejswnr. ]`et

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W^TRNLN GF^R] FA F@HF

=

seln mey, Anmnrei @fln Ifej ahinm wht` t`n gfurt e gfpy fa t`n esshojlnjt fa t`n

lfrtoeon arfl Inoegy Lfrtoeon tf _niis Aerof metnm Jfvnlbnr 2?, 2441.

{ 52} Anmnrei @fln Ifej eoehj lfvnm afr sullery kumolnjt,suppfrthjo t`n lfthfj wht` t`n eaahmevht fa @nrlej Kf`j Cnjjnrty, vhgn prnshmnjt

fa ifej mfgulnjtethfj afr _niis Aerof es snrvhghjo eonjt afr Anmnrei @fln Ifej,

w`f evnrrnm t`et t`n Wg`wertzweims wnrn hj mnaeuit ejm w`f eut`njthgetnm t`n

jftn ejm lfrtoeon es wnii es t`n esshojlnjt fa t`n jftn ejm lfrtoeon arfl _niis

Aerof. Wubsnqunjtiy, Anmnrei @fln Ifej ahinm gfphns fa t`n jfterhznm

esshojlnjts arfl Inoegy Lfrtoeon tf _niis Aerof ejm arfl _niis Aerof tf

Anmnrei @fln Ifej.{ 57} ]`n Wg`wertzweims eisf lfvnm afr sullery kumolnjt, essnrthjo

t`et Anmnrei @fln Ifej iegcnm stejmhjo tf afrngifsn fj t`nhr prfpnrty.

{ 5=} ]`n trhei gfurt njtnrnm sullery kumolnjt afr Anmnrei @fln Ifej,ahjmhjo t`et t`n Wg`wertzweims `em mnaeuitnm fj t`n jftn, ejm ht frmnrnm t`n

nquhty fa rnmnlpthfj afrngifsnm ejm t`n prfpnrty sfim. Anmnrei @fln Ifej

purg`esnm t`n prfpnrty et e s`nrhaas sein.

{ 5>} Fj eppnei, t`n Wngfjm Mhstrhgt Gfurt fa Eppneis eaahrlnm ejm `nimt`et Anmnrei @fln Ifej `em nstebihs`nm hts rho`t tf njafrgn t`n prflhssfry jftn

es e jfj`fimnr hj pfssnsshfj, bngeusn esshojlnjt fa t`n lfrtoeon naangtnm e

trejsanr fa t`n jftn ht sngurnm. ]`n gfurt aurt`nr nxpiehjnm t`et stejmhjo hs jft e

kurhsmhgthfjei prnrnquhshtn ejm t`et e iegc fa stejmhjo ley bn gurnm by substhtuthjo

t`n rnei perty hj hjtnrnst afr ej frhohjei perty pursuejt tf Ghv.R. 5?(E). ]`us, t`n

gfurt gfjgiumnm t`et eit`fuo` Anmnrei @fln Ifej iegcnm stejmhjo et t`n thln ht

gfllnjgnm t`n afrngifsurn egthfj, ht gurnm t`et mnangt by t`n esshojlnjt fa t`n

lfrtoeon ejm trejsanr fa t`n jftn prhfr tf njtry fa kumolnjt.

{ 51} ]`n gfurt fa eppneis gnrthahnm t`et hts mnghshfj gfjaihgtnm wht`_niis Aerof Bejc, J.E. v. Byrm, 5?0 F`hf Epp.7m 20>, 2440-F`hf-=147, 08?

J.N.2m ?22 (5st Mhst.), 5>-513 Bejc fa Jnw Xfrc v. Ohjmnin, 5st Mhst. Jf. G-

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Kejuery ]nrl, 2452

>

4842>5, 2454-F`hf->=2, 7-=3 ejm _niis Aerof Bejc, J.E. v. Kfrmej, 0t` Mhst.

Jf. 851?>, 2448-F`hf-5482, 25, gesns t`et `nim t`et e iegc fa stejmhjo gejjft

bn gurnm by substhtuthjo t`n rnei perty hj hjtnrnst afr ej frhohjei perty pursuejt tf

Ghv.R. 5?(E). _n eggnptnm t`n gfjaihgt ejm t`n Wg`wertzweims mhsgrnthfjery

eppnei fj t`n seln hssun.

Eroulnjts fj Eppnei

{ 5?} ]`n Wg`wertzweims nxpiehj t`et t`n nssnjthei espngt fa stejmhjo hshjkury tf e inoeiiy prftngtnm rho`t ejm giehl t`et Anmnrei @fln Ifej `em jft bnnj

hjkurnm by t`nhr mnaeuit et t`n thln ht gfllnjgnm t`hs afrngifsurn egthfj, bngeusn

ht `em jft fbtehjnm t`n jftn ejm lfrtoeon ujthi eatnr ht ahinm t`n gflpiehjt.Rniyhjo fj anmnrei gesniew, t`ny lehjtehj t`et stejmhjo hs mntnrlhjnm es fa t`n

thln t`n egthfj hs brfuo`t, sf t`et subsnqunjt nvnjts mf jft gurn e iegc fa

stejmhjo. ]`ny aurt`nr uron t`et eit`fuo` t`n rnquhrnlnjt fa e rnei perty hj

hjtnrnst gej bn wehvnm, t`et rnquhrnlnjt gejjft bn nquetnm wht` t`n rnquhrnlnjt

fa stejmhjo.

{ 50} Anmnrei @fln Ifej essnrts t`et pursuejt tf R.G. 5747.75, ht hs epnrsfj njthtinm tf njafrgn t`n jftn bngeusn ht hs Se\ jfj`fimnr hj pfssnsshfj fa

t`n hjstrulnjt w`f `es t`n rho`ts fa e `fimnr by vhrtun fa t`n jnofthethfj fa t`n

jftn arfl Inoegy tf _niis Aerof ejm t`n esshojlnjt arfl _niis Aerof. Aurt`nr,

ht lehjtehjs t`et R.G. 5747.75 mnahjns fjiy w`hg` perty hs njthtinm tf njafrgn e

jftn ejm t`et t`n aehiurn tf bn e rnei perty hj hjtnrnst et t`n gfllnjgnlnjt fa suht

gej bn gurnm pursuejt tf Ghv.R. 5?(E) by t`n esshojlnjt fa t`n lfrtoeon ejm

jftn. Ht eisf gfjtnjms t`et t`n kurhsmhgthfjei rnquhrnlnjt fa kusthghebhihty hs

sethsahnm ha t`n eiinoethfjs fa t`n gflpiehjt nstebihs` t`et t`n piehjthaa `es stejmhjo

tf prnsnjt e kusthghebin gfjtrfvnrsy ejm t`et nvnj ha ht hs mntnrlhjnm t`et t`fsn

eiinoethfjs wnrn hj aegt aeisn, t`n lettnr rnlehjs kusthghebin sf ifjo es t`n piehjthaa

subsnqunjtiy fbtehjs t`n rho`t tf afrngifsn prhfr tf kumolnjt. Fj t`hs beshs, ht

erouns t`et bngeusn t`n F`hf Gfjsthtuthfj bnstfws onjnrei (ejm jft ihlhtnm)

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W^TRNLN GF^R] FA F@HF

1

kurhsmhgthfj fj gfllfj pines gfurts, gfllfj pines gfurts `evn kurhsmhgthfj tf

`ner mhsputns, nvnj ha t`n jelnm piehjthaa wes jft t`n gfrrngt pnrsfj tf hjvfcn ht.

]`us, ht gfjgnmns t`et t`n rngfrm hj t`hs gesn mfns jft nstebihs` t`et ht wes e

pnrsfj njthtinm tf njafrgn t`n jftn es fa t`n metn t`n gflpiehjt wes ahinm, but ht

lehjtehjs t`et ht prfvnm t`et ht wes sug` e pnrsfj prhfr tf kumolnjt.

{ 58} Eggfrmhjoiy, t`n qunsthfj prnsnjtnm hs w`nt`nr e iegc fa stejmhjoet t`n gfllnjgnlnjt fa e afrngifsurn egthfj ahinm hj e gfllfj pines gfurt ley

bn gurnm by fbtehjhjo ej esshojlnjt fa e jftn ejm lfrtoeon suaahghnjt tf nstebihs`

stejmhjo prhfr tf t`n njtry fa kumolnjt.

Iew ejm EjeiyshsWtejmhjo tf Wun

{ 24} ]`n F`hf Gfjsthtuthfj prfvhmns hj Erthgin HQ, Wngthfj =(B); ]`ngfurts fa gfllfj pines ejm mhvhshfjs t`nrnfa s`eii `evn sug` frhohjei kurhsmhgthfj

fvnr eii kusthghebin lettnrs ejm sug` pfwnrs fa rnvhnw fa prfgnnmhjos fa

emlhjhstrethvn faahgnrs ejm eonjghns es ley bn prfvhmnm by iew. (Nlp`eshs

emmnm.)

{ 25} Hj Ginvniejm v. W`ecnr @ts., 74 F`hf Wt.7m =8, >5, >4? J.N.2m 727(580?), wn stetnm;

_`nt`nr e perty `es e suaahghnjt stecn hj ej ft`nrwhsn

kusthghebin gfjtrfvnrsy tf fbtehj kumhghei rnsfiuthfj fa t`et

gfjtrfvnrsy hs w`et `es tremhthfjeiiy bnnj rnanrrnm tf es t`n

qunsthfj fa stejmhjo tf sun. _`nrn t`n perty mfns jft rniy fj ejy

spnghahg stetutn eut`frhzhjo hjvfgethfj fa t`n kumhghei prfgnss, t`n

qunsthfj fa stejmhjo mnpnjms fj w`nt`nr t`n perty `es eiinonm

* * * e pnrsfjei stecn hj t`n futgfln fa t`n gfjtrfvnrsy.

8/13/2019 Schwartzwald v. FHLMC

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Kejuery ]nrl, 2452

?

Hm., qufthjo Lhmmintfwj v. Anrousfj, 2> F`hf Wt.7m ?5, ?>, =8> J.N.2m 704

(5801), qufthjo Whnrre Giub v. Lfrtfj, =4> ^.W. ?2?, ?75-?72, 82 W.Gt. 5715, 75

I.Nm.2m 171 (58?2), qufthjo Becnr v. Gerr, 718 ^.W. 501, 24=, 02 W.Gt. 185, ?

I.Nm.2m 117 (58?2). Whlhieriy, t n ^jhtnm Wtetns Wuprnln Gfurt fbsnrvnm hj

Wtnni Gf. v. Ghthznjs afr e Bnttnr Njvhrfjlnjt, >27 ^.W. 07, 542, 550 W.Gt. 5447,

5=4 I.Nm.2m 254 (5880), t`et Ss\tejmhjo tf sun hs pert fa t`n gfllfj

ujmnrstejmhjo fa w`et ht tecns tf lecn e kusthghebin gesn.

{ 22} _n rngfojhznm t`et stejmhjo hs e kurhsmhgthfjei rnquhrnlnjt hjWtetn nx rni. Meiilej v. Arejcihj Gty. Gfurt fa Gfllfj Tines , 7> F`hf Wt.2m

5?1, 5?8, 280 J.N.2m >5> (58?7), ejm wn stetnm; Ht hs ej ninlnjtery gfjgnpt faiew t`et e perty iegcs stejmhjo tf hjvfcn t`n kurhsmhgthfjfa t`n gfurt ujinss `n `es,

hj ej hjmhvhmuei fr rnprnsnjtethvn gepeghty, sfln rnei hjtnrnst hj t`n subkngt lettnr

fa t`n egthfj. (Nlp`eshs emmnm.) Wnn eisfJnw Bfstfj Gfcn Gfrp. v. ]yinr, 72

F`hf Wt.7m 251, 250, >57 J.N.2m 742 (580?) (t`n hssun fa stejmhjo, hjeslug` es

ht hs kurhsmhgthfjei hj jeturn, ley bn rehsnm et ejy thln murhjo t`n pnjmnjgy fa t`n

prfgnnmhjos)3 Wtnhjoiess & Wgersniih, ]`n F`hf Wtetn Gfjsthtuthfj; E Rnanrnjgn

Ouhmn 504 (244=) (jfthjo t`et t`n kurhsmhgthfj fa t`n gfllfj pines gfurt hs

ihlhtnm tf kusthghebin lettnrs).

{ 27} Ejm rngnjtiy, hj Chjgehm v. Nrhn Hjs. Gf., 520 F`hf Wt.7m 722,2454-F`hf-1471, 8== J.N.2m 24?, wn eaahrlnm t`n mhslhssei fa e gflpiehjt afr

iegc fa stejmhjo w`nj ht `em bnnj ahinm bnafrn t`n giehlejt `em suaanrnm ejy

hjkury. ]`nrn, Chjgehm essnrtnm giehls t`et `hs hjsurnr `em brneg`nm t`n hjsurejgn

gfjtregt by aehihjo tf pey nxpnjsns gfvnrnm by t`n pfihgy3 `fwnvnr, `n `em jnvnr

prnsnjtnm e giehl afr rnhlbursnlnjt tf t`n hjsurnr. _n gfjgiumnm t`et Chjgehm

iegcnm stejmhjo tf essnrt t`n geusn fa egthfj, nxpiehjhjo, ^jthi Nrhn rnausns tf pey

e giehl afr e ifss, Chjgehm `es suaanrnm jf egtuei meleons afr brneg` fa gfjtregt,

t`n perthns mf jft `evn emvnrsn inoei hjtnrnsts, ejm t`nrn hs jf kusthghebin

gfjtrfvnrsy. Hm.et 57.

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W^TRNLN GF^R] FA F@HF

0

{ 2=} Bngeusn stejmhjo tf sun hs rnquhrnm tf hjvfcn t`n kurhsmhgthfj fa t`ngfllfj pines gfurt, stejmhjo hs tf bn mntnrlhjnm es fa t`n gfllnjgnlnjt fa

suht.Iukej v. Mnanjmnrs fa _himihan, >4= ^.W. >>>, >?4->?5, 552 W.Gt. 2574, 558

I.Nm.2m 7>5 (5882), aj. >3 snn eisfArhnjms fa t`n Nert`, Hjg. v. Iehmiew

Njvhrfjlnjtei Wnrvs. (]FG),>20 ^.W. 51?, 504, 524 W.Gt. 187, 5=> I.Nm.2m 154

(2444)3 Jfve @neit` Wys. v. Oejmy, =51 A.7m 55=8, 55>=-55>> (54t` Ghr.244>)3

Afgus fj t`n Aelhiy v. Thjniies Wujgfest ]rejsht Eut`., 7== A.7m 5217, 52?>

(55t` Ghr.2447)3Tnrry v. Erihjotfj @ts.,501 A.7m 021, 074 (?t` Ghr.5888)3 Gerr

v. Eite Qnrmn Hjmustrhns, Hjg.,875 A.2m 54>>, 5415 (>t` Ghr.5885).

{ 2>}Aurt`nr, hjvfchjo t`n kurhsmhgthfj fa t`n gfurt mnpnjms fj t`n stetn

fa t`hjos et t`n thln fa t`n egthfj brfuo`t,Luiiej v. ]frrejgn,22 ^.W. >7?, >78,

1 I.Nm. 5>= (502=), ejm t`n Wuprnln Gfurt `es fbsnrvnm t`et St\`n stetn fa

t`hjos ejm t`n frhohjeiiy eiinonm stetn fa t`hjos ern jft syjfjylfus3

mnlfjstrethfj t`et t`n frhohjei eiinoethfjs wnrn aeisn whii mnanet kurhsmhgthfj.

Rfgcwnii Hjtnrjeti. Gfrp. v. ^jhtnm Wtetns, >=8 ^.W. =>?, =?7, 52? W.Gt. 578?,

51? I.Nm.2m 584 (244?).

{ 21} ]`us, Sp\fst-ahihjo nvnjts t`et suppiy stejmhjo t`et mhm jft nxhstfj ahihjo ley bn mhsrnoermnm, mnjyhjo stejmhjo mnsphtn e s`fwhjo fa suaahghnjt

prnsnjt hjkury geusnm by t`n g`eiinjonm egts ejm gepebin fa kumhghei rnmrnss. 57E

_rho`t, Lhiinr & Gffpnr, Anmnrei Tregthgn ejm Trfgnmurn 8, Wngthfj 7>75

(2440)3snn Orupf Meteaiux v. Eties Oifbei Orfup, I.T., >=5 ^.W. >1?, >?>, 52=

W.Gt. 5824, 5>0 I.Nm.2m 011 (244=), qufthjo Getnrphiier Hjg. v. Inwhs, >58 ^.W.

15, ?>, 55? W.Gt. =1?, 571 I.Nm.2m =7? (rnkngthjo eroulnjt t`et ahjeihty,

naahghnjgy, ejm kumhghei ngfjfly gej kusthay suspnjshfj fa t`n thln-fa-ahihjo

ruin)3 ^te` Essj. fa Gfujthns v. Bus`, =>> A.7m 548=, 5545, ejm aj. 1 (54t`

Ghr.2441) (e piehjthaa gejjft rniy fj hjkurhns fggurrhjo eatnr t`n ahihjo fa t`n

gflpiehjt tf nstebihs` stejmhjo).

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{ 2?} ]`hs prhjghpin eggfrms wht` mnghshfjs arfl ft`nr stetns `fimhjo t`etstejmhjo hs mntnrlhjnm es fa t`n ahihjo t`n gflpiehjt. Wnn, n.o., Mnutsg`n Bejc

Jeti. ]rust v. Brulbeuo`, 2452 FC 7, 2?4 T.7m 5>5, 55 (Ha Mnutsg`n Bejc

bngeln e pnrsfj njthtinm tf njafrgn t`n jftn es nht`nr e `fimnr fr jfj`fimnr hj

pfssnsshfj w`f `es t`n rho`ts fa e `fimnr eatnr t`n afrngifsurn egthfj wes ahinm,

t`nj t`n gesn ley bn mhslhssnm wht`fut prnkumhgn * * * Snlp`eshs emmnm\)3 ^.W.

Bejc Jeti. Essj. v. Chlbeii, 584 Qt. 254, 2455 Q] 05, 2? E.7m 540?, 5= (^.W.

Bejc wes rnquhrnm tf s`fw t`et et t`n thln t`n gflpiehjt wes ahinmht pfssnssnm

t`n frhohjei jftn nht`nr lemn peyebin tf bnernr wht` e biejc njmfrsnlnjt fr lemn

peyebin tf frmnr wht` ej njmfrsnlnjt spnghahgeiiy tf ^.W. Bejc Snlp`eshsemmnm\)3Lton. Ningtrfjhg Rnohstrethfj Wys., Hjg. v. Weujmnrs, 2454 LN ?8, 2 E.7m

20?, 5> (_ht`fut pfssnsshfj fa fr ejy hjtnrnst hj t`n jftn, LNRW iegcnm

stejmhjo tf hjsthtutnafrngifsurn prfgnnmhjos ejm gfuim jft hjvfcn t`n kurhsmhgthfj

fa fur trhei gfurts Snlp`eshs emmnm\)3 RLW Rnshmnjthei Trfpnrthns, I.I.G. v.

Lhiinr, 747 Gfjj. 22=, 228, 272, 72 E.7m 748 (2455), qufthjo @hiejm v. Hvns, 20

Gfjj.Wupp. 2=7, 2=>, 2>? E.2m 022 (5811) (nxpiehjhjo t`et Ss\tejmhjo hs t`n

inoei rho`t tf snt kumhghei leg`hjnry hj lfthfj ejm `fimhjo t`et t`n piehjthaa `em

stejmhjo bngeusn ht prfvnm fwjnrs`hp fa t`n jftn ejm lfrtoeon et t`n thln ht

gfllnjgnm afrngifsurn egthfj)3 LgInej v. KT Lfroej G`esn Bejc Jeti. Essj.,

?8 Wf.7m 5?4, 5?7 (Aie.Epp.2452) (t`n piehjthaa lust prfvn t`et ht `em stejmhjo

tf afrngifsn w`nj t`n gflpiehjt wes ahinm)3snn eisfBuriny v. Mfuoies, 21 Wf.7m

5457, 5458 (Lhss.2448), qufthjo Iukej v. Mnanjmnrs fa _himihan, >4= ^.W. >>>,

>?5, 552 W.Gt. 2574, 558 I.Nm.2m 7>5 (5882), aj. > ( stejmhjo hs tf bn

mntnrlhjnm es fa t`n gfllnjgnlnjt fa suht )3 Hj rn 244? Emlhjhstrethfj fa

Epprfprhethfjs fa _etnr fa t`n Jhfbrere, 2?0 Jnb. 57?, 5=>, ?10 J._.2m =24

(2448) (fjiy e perty t`et `es stejmhjo ley hjvfcn t`n kurhsmhgthfj fa e gfurt fr

trhbujei. Ejm t`n kujhfr epprfprhetfrs mhm jft ifsn stejmhjo ha t`ny pfssnssnm ht

ujmnr t`n aegts nxhsthjo w`nj t`ny gfllnjgnm t`n ihthoethfj Safftjftn flhttnm\).

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{ 20} @nrn, Anmnrei @fln Ifej gfjgnmns t`et t`nrn hs jf nvhmnjgn t`et ht`em suaanrnm ejy hjkury et t`n thln ht gfllnjgnm t`hs afrngifsurn egthfj. ]`us,

bngeusn ht aehinm tf nstebihs` ej hjtnrnst hj t`n jftn fr lfrtoeon et t`n thln ht ahinm

suht, ht `em jf stejmhjo tf hjvfcn t`n kurhsmhgthfj fa t`n gfllfj pines gfurt.

]`n Rnei-Terty-hj-Hjtnrnst Ruin

{ 28} ]`n gfurt fa eppneis ejm Anmnrei @fln Ifej rnihnm fj t`npiureihty fphjhfj hj Wtetn nx rni. Kfjns v. Wustnr, 0= F`hf Wt.7m ?4, ??, ?45 J.N.2m

5442 (5880), w`hg` suoonstnm t`et St\`n iegc fa stejmhjo ley bn gurnm by

substhtuthjo t`n prfpnr perty sf t`et e gfurt ft`nrwhsn `evhjo subkngt lettnr

kurhsmhgthfj ley prfgnnm tf emkumhgetn t`n lettnr. Ghv.R. 5?. @fwnvnr, afurkusthgns mngihjnm tf kfhj t`et pfrthfj fa t`n fphjhfj, ejm t`nrnafrn ht hs jft e

`fimhjo fa t`hs gfurt. Wnn F`hf Gfjsthtuthfj, Erthgin HQ, Wngthfj 2(E) (E

lekfrhty fa t`n suprnln gfurt s`eii bn jngnssery tf gfjsthtutn e qufrul fr tf

rnjmnr e kumolnjt).

{ 74} Et gfllfj iew, eii egthfjs `em tf bn brfuo`t hj t`n jeln fa t`npnrsfj `fimhjo inoei thtin tf t`n rho`t essnrtnm, ejm hjmhvhmueis pfssnsshjo fjiy

nquhtebin fr bnjnahghei hjtnrnsts gfuim jft sun hj t`nhr fwj rho`t. Wnn onjnreiiy

Gierc & @utg`hjs, ]`n Rnei Terty hj Hjtnrnst, 7= Xein I.K. 2>8 (582>)3 1E

_rho`t, Lhiinr & Cejn, Anmnrei Tregthgn ejm Trfgnmurn, Wngthfj 5>=5 (2454).

@fwnvnr, t`n pregthgn hj nquhty rniexnm t`hs rnquhrnlnjt, ejm stetns ietnr

ebrfoetnm t`n gfllfj-iew ruins ejm emfptnm ruins t`et pnrlhttnm ejy rnei perty

hj hjtnrnst tf brhjo suht. Wprhjt Gfllujhgethfjs Gf., I.T. v. ETGG Wnrvs., Hjg.,

>>= ^.W. 218, 2?8, 520 W.Gt. 2>75, 5?5 I.Nm 2m =2= (2440).

{ 75} Hj F`hf, Ghv.R. 5?(E) ofvnrjs t`n prfgnmurei rnquhrnlnjt t`et egflpiehjt bn brfuo`t hj t`n jeln fa t`n rnei perty hj hjtnrnst ejm prfvhmns;

Nvnry egthfj s`eii bn prfsngutnm hj t`n jeln fa t`n rnei

perty hj hjtnrnst. Ej nxngutfr, emlhjhstretfr, ouermhej, behinn,

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trustnn fa ej nxprnss trust, e perty wht` w`fl fr hj w`fsn jeln e

gfjtregt `es bnnj lemn afr t`n bnjnaht fa ejft`nr, fr e perty

eut`frhznm by stetutn ley sun hj `hs jeln es sug` rnprnsnjtethvn

wht`fut kfhjhjo wht` `hl t`n perty afr w`fsn bnjnaht t`n egthfj hs

brfuo`t. _`nj e stetutn fa t`hs stetn sf prfvhmns, ej egthfj afr t`n

usn fr bnjnaht fa ejft`nr s`eii bn brfuo`t hj t`n jeln fa t`hs stetn.

Jf egthfj s`eii bn mhslhssnm fj t`n orfujm t`et ht hs jft prfsngutnm

hj t`n jeln fa t`n rnei perty hj hjtnrnst ujthi e rnesfjebin thln `es

bnnj eiifwnm eatnr fbkngthfj afr rethahgethfj fa gfllnjgnlnjt fa

t`n egthfj by, fr kfhjmnr fr substhtuthfj fa, t`n rnei perty hj hjtnrnst.Wug` rethahgethfj, kfhjmnr, fr substhtuthfj s`eii `evn t`n seln naangt

es ha t`n egthfj `em bnnj gfllnjgnm hj t`n jeln fa t`n rnei perty

hj hjtnrnst.

{ 72} Gfjshmnrhjo Ghv.R. 5?(E) hj W`neiy v. Gelpbnii, 24 F`hf Wt.7m 27,2=-2>, =0> J.N.2m ?45 (580>), wn fbsnrvnm;

]`n purpfsn bn`hjm t`n rnei perty hj hjtnrnst ruin hs * * *

tf njebin t`n mnanjmejt tf evehi `hlsnia fa nvhmnjgn ejm mnanjsns

t`et t`n mnanjmejt `es eoehjst t`n rnei perty hj hjtnrnst, ejm tf

essurn `hl ahjeihty fa t`n kumolnjt, ejm t`et `n whii bn prftngtnm

eoehjst ejft`nr suht brfuo`t by t`n rnei perty et hjtnrnst fj t`n

seln lettnr. Gniejnsn Gfrp. fa Elnrhge v. Kf`j Gierc Hjmustrhns

(> Ghr.58>=), 25= A.2m >>5, >>1. SHj rn @ho`iejm @fihmey

Wubmhvhshfj (58?5), 2? F`hf Epp.2m 27?\ 2=4 S2?7 J.N.2m 847\.

{ 77} Es t`n Wuprnln Gfurt nxpiehjnm hjIhjgfij Trfpnrty Gf. v. Rfg`n,>=1 ^.W. 05, 84, 521 W.Gt. 141, 517 I.Nm.2m =5> (244>), t`n rnei-perty-hj-hjtnrnst

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52

ruin gfjgnrjs fjiy prfpnr perty kfhjmnr. Ghv.R. 5?(E) mfns jft emmrnss stejmhjo3

ret`nr, t`n pfhjt fa t`n ruin hs t`et suhts by rnprnsnjtethvn piehjthaas fj bn`eia fa

t`n rnei perthns hj hjtnrnst ern t`n nxgnpthfj ret`nr t`ej t`n ruin ejm s`fuim fjiy bn

eiifwnm w`nj t`n rnei perthns hj hjtnrnst ern hmnjthahebin ejm t`n rns kumhgete sgfpn

fa t`n kumolnjt gej bn naangthvniy mntnrlhjnm. Gfjsulnr Anmj. fa El. v.

^pkf`j Gf., 7=1 E.2m ?2>, ?28 (M.G.58?>) (gfjstruhjo ejeifofus Mhstrhgt fa

Gfiulbhe ruin).

{ 7=} ]`us, t`n ]`hrm ejm t`n Jhjt` Ghrguhts `evn rnkngtnm t`n jfthfj t`etAnm.R.Ghv.T. 5?(e), fj w`hg` Ghv.R. 5?(E) hs besnm, eiifws e perty wht` jf

pnrsfjei stecn hj e gfjtrfvnrsy tf ahin e giehl fj bn`eia fa e t`hrm perty, fbtehj t`ngeusn fa egthfj by esshojlnjt, ejm t`nj `evn t`n esshojlnjt rnietn begc tf

gfllnjgnlnjt fa t`n egthfj, stethjo;

Ruin 5?(e) mfns jft eppiy tf e shtuethfj w`nrn e perty wht`

jf geusn fa egthfj ahins e iewsuht tf tfii t`n stetutn fa ihlhtethfjs

ejm ietnr fbtehjs e geusn fa egthfj t`rfuo` esshojlnjt. Ruin 5?(e)

hs t`n gfmhahgethfj fa t`n seiutery prhjghpin t`et ej egthfj s`fuim

jft bn afranhtnm bngeusn fa ej `fjnst lhstecn3 ht hs jft e prfvhshfj

tf bn mhstfrtnm by perthns tf ghrgulvnjt t`n ihlhtethfjs pnrhfm.

Oermjnr v. Wtetn Aerl Ahrn & Ges. Gf., >== A.7m >>7, >17 (7m Ghr.2440), qufthjo

^jhtnm Wtetns nx rni. _uiaa v. GLE, Hjg., 084 A.2m 54?4, 54?> (8t` Ghr.5808).

{ 7>} ]`n Whxt` Ghrguht Gfurt fa Eppneis mnghshfj hj [urhg` Hjs. Gf. v.Ifohtrejs, Hjg., 28? A.7m >20 (1t` Ghr.2442), hiiustretns t`hs pfhjt. Hj t`et gesn, e

ahrn et e wern`fusn mnstrfynm prfpnrty hjsurnm by Elnrhgej Ouerejtnn, w`hg`

pehm fut e giehl afr meleons. @fwnvnr, ejft`nr hjsurejgn gflpejy, [urhg`

Wwhtznriejm, ahinm e gflpiehjt giehlhjo tf bn t`n hjsurnms subrfonn,

jftwht`stejmhjo t`n aegt t`et [urhg` Wwhtznriejm `em jnht`nr hssunm ej hjsurejgn

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pfihgy jfr pehm fut ejy lfjny tf t`n hjsurnm. ]`n mnanjmejts lfvnm tf mhslhss

afr iegc fa stejmhjo, ejm [urhg` Wwhtznriejm sfuo`t tf substhtutn Elnrhgej

Ouerejtnn es t`n rnei perty hj hjtnrnst pursuejt tf Anm.R.Ghv.T. 5?(e). ]`n mhstrhgt

gfurt mhslhssnm t`n egthfj.

{ 71} ]`n Whxt` Ghrguht Gfurt fa Eppneis egcjfwinmonm t`et t`n stetutnfa ihlhtethfjs wfuim ber Elnrhgej Ouerejtnns giehl ujinss Anm.R.Ghv.T. 5?(e)

eiifwnm ht tf bn substhtutnm afr [urhg` Wwhtznriejm. @fwnvnr, t`n gfurt

mhsthjouhs`nm bntwnnj t`n rnquhrnlnjt fa stejmhjo ejm t`n fbkngthfj t`et t`n

piehjthaa hs jft t`n rnei perty hj hjtnrnst, ejm ht `nim t`et bngeusn [urhg` Elnrhgej

emlhttnmiy `es jft suaanrnm hjkury hj aegt by t`n mnanjmejts, ht `em jf stejmhjo tfbrhjo t`hs egthfj ejm jf stejmhjo tf lecn e lfthfj tf substhtutn t`n rnei perty hj

hjtnrnst. Hm.

{ 7?} Ft`nr gfurts `evn eisf mntnrlhjnm t`et e piehjthaa gejjft rniy fjprfgnmurei ruins shlhier tf Ghv.R. 5?(E) tf gurn e iegc fa stejmhjo et t`n

gfllnjgnlnjt fa ihthoethfj. Mevhs v. Xeonf Gfrp., =05 A.7m 115, 1?0 (8t`

Ghr.244?) (w`nt`nr fr jft Mux wes t`n rnei-perty-hj-hjtnrnst, ht mfns jft `evn

stejmhjo, ejm ht gejjft gurn hts stejmhjo prfbinl t`rfuo` ej hjvfgethfj fa

Anm.R.Ghv.T. 5?(e))3 Gierc v. ]rehihjnr Gfrp., 2=2 A.7m 700 (54t` Ghr.2444)

(tebin), fphjhfj rnpfrtnm et 2444 _I 518=288 (jfthjo t`et t`n piehjthaa gejjft

rntrfegthvniy bngfln t`n rnei-perty-hj-hjtnrnst hj frmnr tf gurn e iegc fa

stejmhjo et t`n ahihjo fa t`n gflpiehjt Snlp`eshs shg\)3 eggfrmWtetn v. Trfpnrty et

2450 Rehjbfw Mrhvn, ?=4 Wf.2m 542>, 542?-5420 (Eie.5888) (rnkngthjo t`n

eroulnjt t`et e iegc fa stejmhjo gej bn gurnm eatnr ahihjo fa t`n gflpiehjt)3

Gfjsulnr Anmj. fa El. v. ^pkf`j Gf., 7=1 E.2m ?2>, ?28 (M.G.Epp.58?>)

(nxpiehjhjo t`et mhslhssei afr iegc fa stejmhjo hs gfjshstnjt wht` M.G.

Wupnr.Gt.Ghv.R. 5?(e))3 snn eisfLgInej v. KT Lfroej G`esn Bejc Jeti. Essj.,

?8 Wf.7m 5?4, 5?7 (Aie.Epp.2452) (e perty hs jft pnrlhttnm tf nstebihs` t`n rho`t

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tf lehjtehj ej egthfj rntrfegthvniy by egquhrhjo stejmhjo tf ahin e iewsuht eatnr t`n

aegt).

{ 70} _n eornn wht` t`n rnesfjhjo ejm ejeiyshs prnsnjtnm hj t`nsn gesns.Wtejmhjo hs rnquhrnm tf hjvfcn t`n kurhsmhgthfj fa t`n gfllfj pines gfurt.

Tursuejt tf Ghv.R. 02, t`n Ruins fa Ghvhi Trfgnmurn mf jft nxtnjm t`n kurhsmhgthfj

fa t`n gfurts fa t`hs stetn, ejm e gfllfj pines gfurt gejjft substhtutn e rnei perty

hj hjtnrnst afr ejft`nr perty ha jf perty wht` stejmhjo `es hjvfcnm hts kurhsmhgthfj

hj t`n ahrst hjstejgn.

{ 78} Eggfrmhjoiy, e ihthoejt gejjft pursuejt tf Ghv.R. 5?(E) gurn t`niegc fa stejmhjo eatnr gfllnjgnlnjt fa t`n egthfj by fbtehjhjo ej hjtnrnst hj t`nsubkngt fa t`n ihthoethfj ejm substhtuthjo htsnia es t`n rnei perty hj hjtnrnst.

Naangt fa Iegc fa Wtejmhjo fj Afrngifsurn Egthfjs

{ =4} ]`n iegc fa stejmhjo et t`n gfllnjgnlnjt fa e afrngifsurn egthfjrnquhrns mhslhssei fa t`n gflpiehjt3 `fwnvnr, t`et mhslhssei hs jft ej emkumhgethfj

fj t`n lnrhts ejm hs t`nrnafrn wht`fut prnkumhgn. Wnn Wtetn nx rni. Gfins v.

Orejvhiin, 551 F`hf Wt.7m 275, 244?-F`hf-14>?, 0?? J.N.2m 810, >5. Bngeusn

t`nrn `es bnnj jf emkumhgethfj fj t`n ujmnriyhjo hjmnbtnmjnss, fur mhslhssei `es

jf naangt fj t`n ujmnriyhjo muthns, rho`ts, fr fbihoethfjs fa t`n perthns.

Gfjgiushfj

{ =5} Ht hs aujmelnjtei t`et e perty gfllnjghjo ihthoethfj lust `evnstejmhjo tf sun hj frmnr tf prnsnjt e kusthghebin gfjtrfvnrsy ejm hjvfcn t`n

kurhsmhgthfj fa t`n gfllfj pines gfurt. Ghv.R. 5?(E) mfns jft g`ejon t`hs

prhjghpin, ejm e iegc fa stejmhjo et t`n futsnt fa ihthoethfj gejjft bn gurnm by

rngnhpt fa ej esshojlnjt fa t`n giehl fr by substhtuthfj fa t`n rnei perty hj

hjtnrnst.

{ =2} @nrn, ht hs ujmhsputnm t`et Anmnrei @fln Ifej mhm jft `evnstejmhjo et t`n thln ht gfllnjgnm t`hs afrngifsurn egthfj, ejm t`nrnafrn ht aehinm

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tf hjvfcn t`n kurhsmhgthfj fa t`n gfurt fa gfllfj pines. Eggfrmhjoiy, t`n

kumolnjt fa t`n gfurt fa eppneis hs rnvnrsnm, ejm t`n geusn hs mhslhssnm.

Kumolnjt rnvnrsnm

ejm geusn mhslhssnm.

FGFJJFR, G.K., ejm TANHANR, I^JMBNRO W]RE]]FJ, IEJ[HJONR,G^TT,

ejm LGONN BRF_J, KK., gfjgur.

VVVVVVVVVVVVVVVVVV

]`flpsfj @hjn, I.I.T., Wgftt E. Chjo, ejm ]nrry _. Tfsny Kr., afr

eppniinn.

Ejmrnw L. Njoni, afr eppniiejts.Brugn L. Brfyins, urohjo rnvnrsei afr elhgh gurhen @flnfwjnrs fa t`n

Wtetn fa F`hf ejm F`hfareumgifsurn.bifospft.gfl.

Emvfgetns afr Beshg Inoei Nqueihty, Hjg., ejm Ejmrnw M. Jnu`eusnr3

Inoei Ehm Wfghnty fa Ginvniejm ejm Kuihn C. Rfbhn3 Inoei Ehm Wfghnty fa

Wfut`wnst F`hf, I.I.G., ejm Jfni L. Lfroej3 Gfllujhty Inoei Ehm Wnrvhgns,

Hjg., G`rhsthje L. Kejhgn, ejm Teui N. [hjmin3 ejm F`hf Tfvnrty Iew Gnjtnr ejm

Ihjme Gffc, urohjo rnvnrsei afr elhgh gurhen Emvfgetns afr Beshg Inoei Nqueihty,

Hjg., Inoei Ehm Wfghnty fa Ginvniejm, Inoei Ehm Wfghnty fa Wfut`wnst F`hf,

I.I.G., Gfllujhty Inoei Ehm Wnrvhgns, Hjg., F`hf Tfvnrty Iew Gnjtnr, Inoei

Ehm Wfghnty fa Gfiulbus, Wfut`nestnrj F`hf Inoei Wnrvhgns, Inoei Ehm fa

_nstnrj F`hf, ejm Trf Wnjhfrs, Hjg.

VVVVVVVVVVVVVVVVVVVVVV