ÿWPC š±SÖe§òu6âXÌIÁSèÒŠrp$]…®Îsê60Úk°âœkXež| ®l¸U©:§ÌL˜Èr’_@>•#k/7OˆLØh ,>’ŸÐV›¼±Æë7zºx]es:ý)7®ÿïª/ßÛù”Ê–ÑËzuªµ§¬ÆÏkþ™ÐÙž ×gÃË©Ñýj 4r,Tª •¼Ç²Óv>†\Æ*lß`•ª¾P…,`„¶±/šÖè!Æ>C±­Qè ˜Æ±"Éž¨8 ·_„ÌqÈÁÝ¥ˆÕT¼F­é:‰h¾©Îéû‘þZ¢(†ßùgš¢Ó)Ê;ÏS©³ôÄ5S˜5;ÊÔËKë4DEªÁxß,-ïuClŒ#R+ÈO°øüˆqð5èÄþà+Í…ù\8°Û²®h’ ¦~?Hq¯Ò–Œ‘s3µÐà’é©ä«´çÎ!rÒGǦï.;guÊ»bÍ£ˆ$»pæMj$þ˜çNÒá Õ×üŽ/oК#iiGUþY·‰Wªæ^À=C ¼ò•Y+¡t+ž IÏ»úÜYEù4¾–þ² ¨‘±£4°X°` ¸ hÀpÈ xÐ (#>Ó`VTÿÿ:Body Text InBody Text Indent 2Ó  ÓÓ5+Ü Ü4Œ ä <”ìDœôL¤ü!5ÓÔ  ÔÔ  ÔÔ  ÔÔ  ÔÓ>4°X°` ¸ hÀpÈ xÐ (#>ÓJYTÿÿ$1Body Text Indent 3Ó  ÓÓ8.ÜÜ` Œ ä <”ìDœôL¤ü!8ÓÔ  ÔÔ  ÔÔ  ÔÔ  ÔÓ>4°X°` ¸ hÀpÈ xÐ (#>Ó3|xc«ô\  `*Times New RomanTTôôCô\  PŽ6QôPô\  `*Times New RomanTTXXPô\  PŽ6QXP(J#$¡¡Ô€XÀñXõôÔÔ€XÀñXXXÀñÔÓ  Ó"ÞB è 0*Times New RomanTT Z[D\ ]^U_D`Dabcƒ' Gƒ"ÿU‹ÿÀÀÀ  ÃÝ ƒ°p)ÝÔ€X_ÏXõôÔÔ€X_ÏXXX_ÏÔÓ  ÓÝ  ÝÔ_Ôà@}}ìàò òRepresentative€Answers€„€Page€Ú  Ú1Ú  Úó ó(f3°p$©©Ý ƒ #!ÝÔ€X_ÏXõôÔÔ€X_ÏXXX_ÏÔÓ  ÓÝ  Ý<þ6X9`("Courier NewTTxÖÃ9 Z‹6Times New Roman RegularH0% ÿÿ4heading 1heading 1Ô&  ÔÓ  ÓÔ  ÔÔ  Ôò òó óÔ  ÔÔ  ÔÔ'  ÔÓ  Ó Ñ ° ÑÑ ° Ñ1, 2, 3,Level 1Level 2Level 3Level 4Level 54#,2Quick 1.ÚƒÚÚ  Ú.à0 àÛ€Û Ñ 8 јHP LaserJet 4,ü,,,,,ü0ýš–'c Ñ ° ÑÑ ° Ñ Ñ H ÑÑ H Ñ Ñ H ÑÑ H Ñ Ñ ° ÑÑ ° Ñ Ñ ° ÑÑ ° Ñ Ñ ° Ñ Ñ ° ÑÝ ƒ #!ÝÔ€X_ÏXõôÔÔ€X_ÏXXX_ÏÔÓ  ÓÝ  ÝÔ_ÔÓ  ÓÔ  Ôò òÖ€ÿÿÖÑ€ƒA ÑÑ€dOÑà @ àJULY€1999€MARYLAND€BAR€EXAMINATIONÐ ° Ðó óÓ  Óà@  ìàò òREPRESENTATIVE€GOOD€ANSWERSˆÐ  ð Ðó óÌà@{{'ìàò òPART€AˆÐ €Ð Ðó óÌà@››%ìàò òòòQUESTION€Ióóó óˆÐ ` ° Ðà@ôôìàò ò(20€Points€„€25€Minutes)ó óˆÐ P   ÐÌà0  àà ° àà  àIn€August,€1998,€Alice,€Barry€and€Chris€decided€to€form€a€corporation€to€operate€a€donutÏfranchise€in€Ô_ÔSperryvilleÔ_Ô,€Maryland.Ð (#(# ÐÌà X àà ° àà0  àThey€hired€Lawyer€Jones€to€draft€the€papers€to€form€a€corporation€for€their€new€business,ÏSoggy€Dough,€Inc.€("Soggy€Dough").€€Jones€drafted€articles€of€incorporation€for€a€stockÏcorporation€in€which€Alice,€Barry€and€Chris€are€designated€the€initial€directors.€€JonesÏadvised€them€that€he€would€sign€the€articles€as€the€incorporator€and€file€them€with€theÏMaryland€Department€of€Assessments€and€Taxation€prior€to€leaving€on€September€1€for€aÏthree€(3)€week€vacation.€€He€failed€to€file€the€articles€as€promised,€but€on€October€1,Ï1998,€the€articles€of€incorporation€were€accepted€for€filing€by€the€Department.€€He€neverÏadvised€Alice,€Barry€and€Chris€of€the€date€of€acceptance.Ð (#(# ÐÌà X àà ° àà0  àOn€September€20,€1998€Alice€and€Barry€negotiated€and€signed,€on€behalf€of€theÐ (#(# Ðà  àcorporation,€a€five€year€lease€for€space€in€Super€Mall€at€an€annual€rent€of€$50,000.ÌÌà X àà ° àà0  àOn€October€2,€1998,€Alice,€Barry€and€Chris€met€and€adopted€by„laws€for€the€corporation.€ÏEach€was€elected€as€an€officer€and€director€of€Soggy€Dough.€€The€by„laws€require€theÏsignatures€of€2€of€the€3€officers€to€bind€the€corporation€on€any€contract€obligation€inÏexcess€of€$10,000.Ð (#(# ÐÌà X àà ° àà0  àIn€mid€October,€Barry€and€Chris€attended€a€franchise€training€session€in€Texas.€€In€theirÏabsence,€Alice€met€with€a€representative€of€Kitchen€Corp.€€She€was€told€that€an€order€forÏequipment€placed€immediately€would€be€delivered€by€the€end€of€October.€€Anxious€toÏopen€for€business,€Alice€signed,€as€an€officer€of€Soggy€Dough,€a€contract€to€purchaseÏkitchen€equipment€for€a€purchase€price€of€$90,000.€€When€she€signed€the€contract€onÏOctober€18,€1998,€she€told€the€representative€that€the€by„laws€required€the€signature€of€aÏsecond€officer€on€the€contract.€€In€response,€the€representative€nodded,€but€nonetheless,Ïhe€processed€the€order€later€that€afternoon.€€Although,€Alice€repeatedly€promised€to€seekÏthe€second€signature,€the€Kitchen€Corp.€contract€was€never€signed€by€a€second€officer.€ÏThe€kitchen€equipment€was€delivered€by€the€end€of€October,€but€the€delivery€was€rejectedÏby€Barry.€€The€donut€shop€opened€in€Super€Mall€November€1€using€equipment€purchasedÏfrom€another€source.Ð (#(# ÐÌà0  àIn€early€December,€Alice€told€her€husband,€Mr.€A,€that€Barry€and€Chris€orally€approvedÏthe€contract,€but€that€they€later€found€a€better€deal.€€Mr.€A€told€this€to€his€barber€whoÐ ,`'* ÐÔ_Ôunbeknownst€to€him€was€dating€the€manager€of€Kitchen€Corp.Ð (#(# ÐÌà X àà ° àà0  àSoggy€Dough€was€not€well€received€in€Sperryville,€and€at€the€end€of€February,€1999,€theÏdonut€shop€closed.€€Rent€had€not€been€paid€to€Super€Mall€since€October€and€the€$90,000Ïpurchase€price€for€the€Kitchen€Corp.€equipment€remained€unpaid.Ð (#(# ÐÌà0  àà ° àà  àSuper€Mall€sues€Soggy€Dough,€Alice,€Barry€and€Chris€for€nonpayment€of€rent€under€theÏlease.€€Kitchen€Corp.€sues€Soggy€Dough€and€Alice€for€breach€of€contract€to€purchase€theÏkitchen€equipment.Ð (#(# ÐÓ?+Ü Ü4Œ ä <”ìDœôL¤ü!°œX?ÓÌò òà0  àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà , àà0°(#(#à(a)€€€€€€€Discuss€the€liability€of€each€defendant€for€the€unpaid€rent€and€give€the€reasons€for€€€€€Ð `  Ѐ€€€€€€€€€€€your€conclusions.Ð °(#°(# ÐÌà0  àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà0(#(#àà ° àà , àà0°(#(#à(b)€€€€€€€What€defenses,€if€any,€do€Soggy€Dough€and€Alice€have€to€the€suit€filed€by€Kitchen€€€€€€Ï€€€€€€€€€€€€Corp.?€€Discuss€fully.ó óÐÐ °(#°(# ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€1ó óÐ ° ÐÓ  ÓÌDiscussion€of€liability€of€each€defendant€for€the€unpaid€rent€and€conclusions.ÌÌÓB.ÜÜ` Œ ä <”ìDœôL¤ü!ÜÜŒXBÓà , àà ° à1ò ò.à0 Ü à€€€€€€ó óSoggy€Dough€may€be€held€liable€on€a€de€facto€corporation€theory,€but€this€theory€is€shaky€Ð pÀ Ѐ€€€€€under€Maryland€law.€€Under€Maryland€law,€a€corporation€may€be€held€liable€for€acts€even€Ï€€€€€€though€it€was€not€a€de€jure€corporation€at€the€time€if€there€was€a€relevant€corporate€statute€Ï€€€€€€in€place,€there€was€a€colorable€attempt€to€comply€with€it,€and€there€was€an€exercise€of€€€€€€€€Ï€€€€€€corporate€power.€€Here,€the€filing€of€the€articles€of€incorporation€were€thought€to€be€filed€€€Ï€€€€€€(late€due€to€attorney€ð!ð€Alice,€Barry€&€Chris€did€not€know)€and€there€was€a€lease€signed€€€€€Ð  p Ѐ€€€€€on€behalf€of€the€corporation€by€Alice€and€Barry.€€Soggy€Dough€will€counter€(as€a€€€€€€€€€€€€€€€Ï€€€€€€corporation)€that€there€had€not€yet€been€an€initial€meeting€of€directors,€so€there€could€not€€€Ï€€€€€€be€a€ratification.€€Also,€de€facto€incorporation€theory€would€be€weak,€as€it€is€of€unclear€€€€€€Ï€€€€€€status€in€Maryland.€€It€might€also€be€held€liable€by€corporation€by€estoppel€theory,€where€€Ï€€€€€€a€corporation€was€held€out€to€exist€and€someone€deals€with€a€corporation€on€that€basis.€€€€€€Ï€€€€€€Here,€since€it€was€held€out€to€be€formed€by€Alice€and€Barry,€Soggy€Dough€may€be€liable€€€Ï€€€€€€for€the€unpaid€rent.Ð Ü(#Ü(# ÐÓK.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ` Œ ŠXKÓà0 Ü àÐ Ü(#Ü(# ÐÝ‚ÿÿÿÝÓ  ÓÓE+Ü Ü` Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  ÔÔ  ÔÝ  Ýà0 4 àà ° àà , àà @, àà @, àà ° à2.€€€€€€€€€There€is€a€better€argument€for€holding€out€Alice€and€Barry€as€promoters,€and€liable€forÐ 4(#4(# Ѐ€€€€€€€€€€€pre„incorporation€contracts.€€Promoters€enter€contracts€on€behalf€of€the€corporation€before€Ï€€€€€€€€€€€€it€is€formed,€and€remain€liable€on€the€contract€unless€there€is€a€novation.€€Here,€Alice€and€€Ï€€€€€€€€€€€€Barry€signed€the€lease€agreement€on€behalf€of€Soggy€Dough.€€Since€they€entered€the€€€€€€€€€€Ï€€€€€€€€€€€€contract€before€Soggy€Dough€was€incorporated,€they€can€arguably€be€held€liable€(and€€€€€€€€Ï€€€€€€€€€€€€there€was€no€official€novation),€although€Alice€and€Barry€will€both€argue€that€they€relied€€€Ï€€€€€€€€€€€€on€their€Lawyerððs€representation€that€the€articles€of€incorporation€were€filed.Ìà0 4 àà ° àÐ 4(#4(# Ðà0 4 àà ° àà , àà @, àà ° à3.€€€€€€€€€It€will€be€hard€to€hold€Chris€liable€for€the€rent€on€either€de€facto€corporation/estoppel€Ð,`'*4(#4(# Ѐ€€€€€€€€€€€theories,€or€the€promoter€theory.€€If€there€is€a€defacto€corporation/corporation€by€estoppel,€Ï€€€€€€€€€€€€Chris€will€lose€only€the€amount€of€his€investment,€not€anything€further,€because€of€the€€€€€€€Ï€€€€€€€€€€€€limited€liability€of€shareholders€(there€is€no€evidence€of€breach€of€duty€of€care/loyalty€as€€€Ï€€€€€€€€€€€€a€director).€€If€there€is€no€corporation,€and€only€promoter€liability,€Chris€did€not€sign€the€€€€Ï€€€€€€€€€€€€lease€agreement.€€Since,€under€Maryland€law,€a€promoter€must€sign€a€contract€to€be€€€€€€€€€€€Ï€€€€€€€€€€€€liable,€Chris€will€not€be€liable.Ìà0 4 àà ° àÐ 4(#4(# Ðà , àà ° à4.€€€€€€€€€It€should€be€further€noted€that€if€a€promoter€situation€is€found,€Soggy€Dough€will€likely€€€€€Ï€€€€€€€€€€€€not€be€liable€because,€under€Maryland€law,€a€corporation€must€adopt€a€promoterððs€€€€€€€€€€€€€€Ï€€€€€€€€€€€€contract€to€be€held€liable€on€it.€€The€lessor€will€argue€that€Soggy€Dough€did€adopt€it,€€€€€€€€€€Ï€€€€€€€€€€€€because€it€paid€rent,€and€it€should€be€estopped€from€denying€liability.€€This€argument€will€Ï€€€€€€€€€€€€likely€prevail.€€The€lessor€might€also€argue€that€Alice,€Barry€and€Chris€could€be€held€€€€€€€€€Ï€€€€€€€€€€€€liable€on€a€partnership€theory€(share€losses€equally€because€association€of€two€or€more€as€€Ï€€€€€€€€€€€€co„owners€of€business€for€profit).€€Also,€Alice,€Barry€and€Chris€might€want€to€consider€€€€€€Ï€€€€€€€€€€€€joining€Lawyer€Jones€as€a€defendant,€for€his€negligence€in€not€filing€the€articles€of€€€€€€€€€€€€€Ï€€€€€€€€€€€€incorporation€in€a€timely€fashion.Ìà0 4 àà ° àÐ 4(#4(# ÐDefenses€Soggy€Dough€and€Alice€may€have€to€the€suit€filed€by€Kitchen€Corp.ÌÌÓH.ÜÜ` Œ ä <”ìDœôL¤ü!ÜÜ` Œ ŠXHÓà0 Ü àà ° àà , àà ° à1.€€€€€€€€€Soggy€Dough€will€assert€that€the€Kitchen€Corp.€representative€had€notice€of€the€bylaw€€€€€€€Ï€€€€€€requirement.€€Under€Maryland€law,€bylaws€govern€how€corporate€affairs€are€handled.€€€€€€€€Ï€€€€€€Here,€the€bylaws€require€the€authority€of€2€officers€to€approve€large€contracts.€€Here,€€€€€€€€€Ï€€€€€€Alice€signed€the€contract€by€herself,€and€told€the€representative€that€she€did€not€have€the€€€€Ï€€€€€€authority€to€sign€by€herself,€but€that€the€signature€of€another€officer€would€be€required.€€€€€€Ï€€€€€€The€representative€knew€this,€yet€still€put€in€the€contract.€€Thus,€there€was€no€authority€€€€€€Ï€€€€€€for€Alice€alone€to€bind€Soggy€Dough€and€the€contract€should€not€be€enforced€against€€€€€€€€€Ï€€€€€€Soggy€Dough.Ð Ü(#Ü(# ÐÓH+Ü Ü` Œ ä <”ìDœôL¤ü!ÜÜ` Œ ŠXHÓà0 4 àà ° àÐ 4(#4(# Ð2.€€€€€€€€€As€for€Alice,€she€was€acting€on€behalf€of€the€corporation,€so€she€should€not€be€held€€€€€€€€€€€€Ï€€€€€€€€€€€€personally€liable€for€the€contract.€€As€an€officer€and€director,€she€has€authority€to€bind€the€Ï€€€€€€€€€€€€corporation,€subject€to€restrictions€in€the€bylaws.€€Here,€Alice€signed€the€contract,€but€€€€€€€€Ï€€€€€€€€€€€€clearly€told€the€representative€of€the€two€signature€requirement;€this€was€further€€€€€€€€€€€€€€€€€Ï€€€€€€€€€€€€buttressed€by€Barryððs€rejection€of€the€delivery.€€There€was€no€contract€formed€because€€€€€€€Ï€€€€€€€€€€€€there€was€no€acceptance€by€Alice.€€Thus,€Alice€will€not€be€held€liable€personally€or€as€a€€€€€Ï€€€€€€€€€€€€officer€of€Soggy€Dough.ÌÝ‚ÿÿÿÙƒ ÝÔ  ÔÔ  ÔÓ*ÜÜ‚,Œ ŠXÜÜ` Œ ŠX*ÓÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.2ó óÐ p&À!$ ÐÓ  ÓÌÝ‚ÿÿÿÝÓ  ÓÓ?+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜŒX?ÓÔ  ÔÔ  ÔÝ  ÝÓB.ÜÜ` Œ ä <”ìDœôL¤ü!ÜÜŒXBÓAlice€&€Barryà0 ` àà 4 àà0` ` (#` (#àà 4 àà Ü àà04` (#` (#àÐP( #&4(#4(# ÐÌ1.€€€€€€€€€Alice€and€Barry€signed€the€lease€for€the€store€before€the€corporation€was€incorporated.€€€€€€€Ï€€€€€€€€€€€€This€can€be€considered€a€pre„incorporation€contract€and€under€that€contract€the€promoters€€Ï€€€€€€€€€€€€of€the€corporation€are€personally€liable€unless€there€is€a€novation€of€the€contract€by€the€€€€€€Ô_ÔÐ ,`'* Ѐ€€€€€€€€€€€corporation.€€Here€there€was€a€ratification€of€the€contract€but€there€was€not€a€novation€so€€€Ï€€€€€€€€€€€€Alice€and€Barry€may€still€be€personally€liable.€€However,€they€will€argue€that€they€were€€€€€Ï€€€€€€€€€€€€acting€under€the€direction€of€their€attorneyððs€advice€that€the€charter€would€be€filed€by€€€€€€€€€Ï€€€€€€€€€€€€September€1€and€so€on€September€20€they€were€acting€as€agents€of€the€corporation.€€They€Ï€€€€€€€€€€€€will€argue€that€there€was€a€de€facto€corporation.€€A€de€facto€corporation€exists€when€there€€Ï€€€€€€€€€€€€is€a€good€faith€attempt€to€comply€with€the€statute€and€for€some€reason€it€fails.€€However,€€€Ï€€€€€€€€€€€€this€doctrine€may€not€be€alive€in€Maryland€so€this€might€not€work.€€Or,€they€can€argue€a€€€€Ï€€€€€€€€€€€€corporation€by€estoppel€in€which€a€third€party€does€business€with€what€they€believe€to€be€€Ï€€€€€€€€€€€€a€corporation,€and€as€such,€they€are€Ô_ÔestoppedÔ_Ô€from€denying€its€existence.€€Here,€since€they€Ï€€€€€€€€€€€€signed€the€lease€on€behalf€of€the€corporation,€Super€Mall€will€probably€be€Ô_ÔestoppedÔ_Ô€from€€€Ï€€€€€€€€€€€denying€the€existence€of€the€corporation.ÌÓH+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ` Œ ŠXHÓÌÓB.ÜÜ` Œ ä <”ìDœôL¤ü!ÜÜŒXBÓà , àà ° à€€€€€€€€€€€€As€such,€when€the€lease€was€signed€and€ratified€by€the€corporation,€the€corporation€€€€€€€€€€€€Ï€€€€€€€€€€€€became€liable€on€the€contract,€and€Alice,€Barry€and€Chris€will€not€be€held€personally€€€€€€€€€Ï€€€€€€€€€€€€liable€since€they€had€authority€to€enter€into€it.€€Super€Mall€may€still€argue€that€a€€€€€€€€€€€€€€€€€Ï€€€€€€€€€€€€corporation€did€not€exist€at€the€time€of€the€signing€of€the€lease€and€that€all€that€existed€€€€€€€Ï€€€€€€€€€€€€was€a€partnership€since€they€were€at€that€point€co„owners€of€a€business€for€profit.€€But,€€€€€€Ï€€€€€€€€€€€€the€doctrine€of€corporation€by€estoppel€will€save€Alice,€Barry€and€Chris€from€personal€€€€€€€Ï€€€€€€€€€€€€liability,€and€thus,€Soggy€Dough€will€be€held€liable.ÌÓH+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ` Œ ŠXHÓà0  àÐ (#(# ÐSoggy€DoughÌÌÝ‚ÿÿÿ›,ƒ ÝÔ  ÔÔ  ÔÓ ÜÜŒXÜÜŒXÓÝ  ÝÝ‚ÿÿÿÝÓ  ÓÓB.ÜÜ` Œ ä <”ìDœôL¤ü!ÜÜŒXBÓÔ  ÔÔ  ÔÝ  Ý1.€€€€€€€€€Soggy€Dough€will€have€the€defense€that€Alice€acted€without€authority€of€the€corporation.€€Ï€€€€€€€€€€€€Directors€and€officers€are€agents€of€a€corporation€and€as€such€can€bind€the€corporation€€€€€€€Ï€€€€€€€€€€€€into€contracts€when€they€have€authority€to€do€so.€€In€Maryland,€there€are€three€types€of€€€€€€Ï€€€€€€€€€€€€authority€ð!ð€express,€apparent€and€implicit.€€Here,€there€was€express€authority€to€bind€the€€€€Ð  p Ѐ€€€€€€€€€€€corporation€on€a€contract€over€$10,000€as€long€as€there€were€two€signatures€of€directors.€€€€Ï€€€€€€€€€€€€Since€there€were€not€two€signatures€on€the€contract,€there€was€no€express€authority.€€€€€€€€€€€Ï€€€€€€€€€€€€Implied€authority€does€not€exist€either€because€Soggy€Dough€had€never€dealt€with€€€€€€€€€€€€€Ï€€€€€€€€€€€€Kitchen€Corp.€in€the€past.€€There€may€be€implied€authority.€€This€exists€when€the€agent€is€€Ï€€€€€€€€€€€€cloaked€with€the€appearance€of€authority€and€a€third€person€reasonably€relies€on€this.€€€€€€€€€Ï€€€€€€€€€€€€Kitchen€Corp.€will€argue€that€it€relied€on€that€authority€and€so€the€corporation€will€be€held€Ï€€€€€€€€€€€€liable.€€However,€Alice€will€assert€that€Kitchen€Corp.€knew€that€she€had€no€authority€to€€€€€Ï€€€€€€€€€€€€bind€the€corporation,€that€the€only€way€the€contract€would€be€accepted€would€be€by€€€€€€€€€€€Ï€€€€€€€€€€€€another€director€signing€the€contract,€and€as€such,€there€was€never€a€valid€contract.€€Thus,€€Ï€€€€€€€€€€€€neither€she€nor€the€corporation€should€be€held€liable.Ìà0 Ü àà04Ü(#Ü(#àà Ü àÐ 4(#4(# ÐÓH+Ü Ü` Œ ä <”ìDœôL¤ü!ÜÜ` Œ ŠXHÓ2.€€€€€€€€€Soggy€Dough€will€argue€that€even€though€the€officers€may€have€orally€agreed€to€the€€€€€€€€€€Ï€€€€€€€€€€€€contract€it€was€never€signed€by€another€officer€and€that€oral€agreement€did€not€create€a€€€€€€Ï€€€€€€€€€€€€ratification€of€the€contract.€€They€never€used€the€equipment€although€they€had€knowledge€€Ï€€€€€€€€€€€€of€it€so€there€was€no€ratification€of€the€contract.€€Soggy€Dough€will€also€argue€that€there€€€€Ï€€€€€€€€€€€€was€no€authority€in€Alice€to€bind€the€corporation.€€Alice€will€also€argue€that€she€relied€on€€Ï€€€€€€€€€€€€Kitchen€Corp.€in€that€it€knew€she€needed€another€signature,€and€thus,€no€binding€contract€€Ð ,`'* ÐÑdOÑâ âÑ°°ÑÑ°°Ñâ âÑ  ÑÔ_Ô€€€€€€€€€€€€would€exist€until€she€had€gotten€one.ÌÝ‚ÿÿÿ8ƒ ÝÔ  ÔÔ  ÔÓ$ ÜÜŒXÜÜ` Œ ŠX$ÓÝ  ÝÓ?+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜŒX?ÓÌÔ& P ÔÓ0ÜÜDœôL¤ü!ÜÜŒX0ÓàQtt%ìàò òòòQUESTION€IIóóó óˆÐ à ÐàQôôìàò ò(10€Points€„€12€Minutes)ó óˆÐ €Ð ÐÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜD…XEÓÌ€€€€€€€€€€€€During€the€trial€of€the€Kitchen€Corp.€case,€Alice's€attorney,€Lawyer€Fox,€asked€Alice€to€€€€€Ï€€€€€€€€€€€€describe€what€occurred€during€her€initial€meeting€with€the€representative€of€the€plaintiff,€€€Ï€€€€€€€€€€€€Kitchen€Corp.€€Alice€testified,€among€other€things,€that€she€told€the€representative€that€€€€€€€Ï€€€€€€€€€€€€two€signatures€were€necessary€for€any€corporate€contract€over€$10,000.€€Lawyer€Fox€then€Ï€€€€€€€€€€€€asked€Alice,€"What€did€the€representative€of€Kitchen€Corp.€say€or€do€when€you€told€him€€€Ï€€€€€€€€€€€€you€needed€two€signatures€on€the€contract?"€€The€attorney€for€Kitchen€Corp.,€Lawyer€€€€€€€€Ï€€€€€€€€€€€€Smart,€objected.ÌÔ'P ªBÔÌò òHow€should€the€Court€rule€on€the€objection?€€Explain€the€reasons€for€the€ruling.ó óÐ à0  ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€1ó óÐ À ÐÓ  ÓÌThe€way€the€Court€should€rule€on€the€objection€and€explanation€for€the€ruling.ÌÌ1.€€€€€€€€€The€court€should€admit€the€representativeððs€statement€as€an€exception€to€hearsay€or€as€€€€€€€Ïà0  ànon„hearsay.€€The€representativeððs€statement€is€hearsay,€as€an€out€of€court€statement€€€€€€€€€€Ïoffered€for€the€truth€of€the€matter€asserted€(his€understanding€of€Aliceððs€limited€ability€to€€€Ïbind€Soggy€Dough).€€However,€this€statement€can€be€construed€several€ways.€€Under€€€€€€€€€ÏMaryland€law,€an€out€of€court€statement€is€non„hearsay€if€it€is€a€verbal€act€or€legallyÏoperative€fact„here,€the€representativeððs€response€would€be€vital€to€discerning€whether€heÏknew€Aliceððs€single€signature€constituted€a€contract,€or€if€he€knew€that€her€ability€to€bindÏthe€corporation€was€limited€and€no€contract€could€be€formed.€€As€an€alternative,€it€can€beÏused€as€an€admission€by€a€party€opponent.€€Under€Maryland€law,€an€admission€by€a€partyÏopponent€is€a€hearsay€exception€if€it€is€by€a€party,€even€if€available€to€testify,€and€theÏparty€did€not€know€it€was€against€his€interest€at€the€time.€€The€key€here€is€that€theÏstatement€is€by€Kitchen€Corp.ððs€employee€(the€representative).€€An€admission€by€a€partyÏopponent,€under€Maryland€law,€may€include€the€statements€of€an€employee€if€madeÏwithin€the€scope€of€the€employment€relationship.€€Here,€the€representative€was€working€toÏbenefit€Kitchen€Corp.€by€attempting€to€obtain€a€contract€of€sale€from€Alice.€€(ThisÏsurvives€even€if€Kitchen€Corp.€argues€that€its€representative€was€an€independentÏcontractor,€since€the€representative€is€benefitting€Kitchen€Corp.,€and€creating€contracts€onÏits€behalf.)€€Thus,€the€statement€by€the€Kitchen€Corp.€representative€should€be€admitted€asÏeither€non„hearsay,€or€as€an€exception€to€the€hearsay€rule€by€virtue€of€a€vicariousÏadmission€by€a€party€opponent.Ð (#(# ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€2ó óÐ 0*€%( ÐÓ  ÓÌ1.€€€€€€€€€The€court€should€overrule€the€objection.€€In€Maryland,€admissions€are€an€exception€to€Ð ,`'* Ðà0  àhearsay.€€Hearsay€is€an€out€of€court€statement€being€offered€in€court€to€prove€the€truth€ofÏthe€matter€asserted.€€The€representative€of€Kitchen€Corp.€made€a€statement€while€actingÏwithin€the€scope€of€his€employment.€€Thus,€that€statement€can€be€considered€a€partyÏadmission€since€he€was€an€employee€of€Kitchen€Corp.€and€those€admissions€he€makes€areÏalso€admissions€on€behalf€of€the€corporation.Ð (#(# ÐÌà0  àThe€court€may€also€find€that€since€what€Alice€will€testify€to€is€a€nod€(because€the€factsÏstate€that€the€representative€nodded)€that€may€be€considered€non„hearsay€and€the€nod€willÏjust€be€offered€to€prove€what€effect€the€statement€had€on€the€representative€and€Alice.Ð (#(# ÐÌÓ0ÜÜDœôL¤ü!ÜÜŒX0ÓàQMM$ìàò òòòQUESTION€IIIóóó óˆÐ `  ÐàQXXìàò ò(5€Points€„€8€Minutes)ó óˆÐ P  ÐÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜD…XEÓÌà0  àLawyer€Smart€the€attorney€for€Kitchen€Corp.,€called€Mr.€A€as€a€witness,€and€asked€himÏwhat,€if€anything,€his€wife€had€told€him€in€December€concerning€the€Kitchen€Corp.Ïcontract.€€Lawyer€Fox,€Alice's€attorney,€objected.Ð (#(# Ðò òÌDiscuss€the€arguments€made€by€Lawyer€Smart€and€Lawyer€Fox€on€this€objection.€€Will€theÏobjection€be€sustained,€and€why?ó óÐ à ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€1ó óÐ pÀ ÐÓ  ÓÌArguments€made€by€Lawyer€Smart€&€Lawyer€Fox€with€objections.ÌÌ1.€€€€€€€€€Admission€of€Mr.€Aððs€statement€will€depend€on€whether€it€is€protected€by€the€marital€¼à0  àcommunications€privilege.€€Under€Maryland€law,€a€witness€spouse€(by€his€assertion,€orÏthat€of€the€defendant€spouse)€may€not€testify€to€communications€made€in€reliance€of€theÏmarital„confidential„relationship.€€Here,€Lawyer€Fox€will€argue€that€Alice€made€theÏstatement€regarding€the€Kitchen€Corp.€contract€to€Mr.€A€in€reliance€on€their€confidentialÏrelationship€(marriage).€€Lawyer€Smart€will€argue,€however,€that€the€confidential€natureÏof€this€communication€was€breached€by€Mr.€A€telling€his€barber€of€the€true€reasons€forÏthe€rejection€of€the€Kitchen€Corp.€contract.€€On€this€issue,€Lawyer€Smart€will€not€likelyÏprevail,€since€the€statement€was€intended€to€be€confidential.Ð (#(# ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€2€ó óÐ $à" ÐÓ  ÓÌà0  àLawyer€Smart€will€argue€that€this€is€not€a€privileged€marital€communication€and€thus€Mr.ÏA€can€answer;€the€statement€will€constitute€an€admission€on€behalf€of€Alice.€ÏAdditionally,€since€Mr.€A€told€these€statements€to€a€third€party€he€lost€this€privilege€andÏcannot€reclaim€it€at€trial.€€Also,€he€will€argue€it€is€an€exception€to€hearsay€as€a€declarationÏagainst€interest€if€Alice€knew€it€was€against€her€interests€when€made,€pecuniary€interest.Ð (#(# ÐÌà0  àLawyer€Fox€will€argue€that€this€is€a€privileged€communication€under€the€marital€privilegeÐ ,`'* Ðof€confidential€communications.€€This€privilege€extends€to€parties€who€are€married€in€aÏcivil€or€criminal€case,€and€the€statements€made€during€their€marriage,€either€spouse€canÏclaim€the€privilege.€€Lawyer€Fox€will€argue€that€Alice€made€this€statement€in€confidenceÏto€Mr.€A€and€regardless€of€whether€he€told€a€third€party€this€privilege€is€not€lost€and€sheÏcan€prevent€him€from€testifying.Ð (#(# ÐÌà0  àThe€court€will€most€likely€sustain€the€objection€and€allow€Alice€to€assert€her€privilege€ofÏconfidential€marital€communications.Ð (#(# ÐÐ  0 € Ðà@€€'ìàò òPART€Bó óˆÐ ° ÐÌà@››%ìàòòò òQUESTION€Ió óóóˆÐ à Ðà@ôôìàò ò(20€Points€„€25€Minutes)ó óˆÐ €Ð ÐÌà0  àPaula€Smith€and€Junne,€her€16„year€old€daughter,€are€residents€of€Pennsylvania.€€On€JuneÏ15,€1995,€they€decided€to€visit€a€friend€in€Baltimore,€Maryland.€€As€they€were€leavingÏBaltimore,€Paula€chose€to€head€home€on€Interstate€95,€a€highway€with€which€she€wasÏunfamiliar.€€She€drove€in€the€far€left€lane€at€a€speed€5€miles€below€the€speed€limit,€inÏorder€to€get€her€bearings.€€Three€miles€out€of€the€Baltimore€City€limits,€her€vehicle€wasÏinvolved€in€an€accident€with€a€vehicle€driven€by€Dave€Driver,€a€resident€of€Pennsylvania.€ÏA€Maryland€State€Trooper€who€witnessed€the€accident€issued€a€traffic€ticket€to€Paula€forÏdriving€below€the€posted€speed€limit€and€Dave€for€following€too€closely.€€Junne€was€notÏhospitalized€as€a€result€of€the€accident,€but€did€miss€three€weeks€from€her€summer€job€asÏa€result€of€minor€injuries€sustained.€€Paula€was€hospitalized€with€a€back€injury€and€wasÏreleased€from€the€hospital€on€November€1,€1996.Ð (#(# ÐÌà0  àOn€July€1,€1998€Paula€and€Junne€went€to€see€Allison€Attorney,€a€Maryland€attorney€whoÏrepresented€friends€of€Paulñcñañcñ€in€their€divorce€proceedings,€and€asked€that€she€representÏthem€and€file€suit€against€Dave€Driver.€€Allison€was€admitted€to€the€Maryland€Bar€inÏ1997€and€has€only€practiced€family€law.€€Allison€agreed€to€represent€both.€€She€set€a€feeÏof€$15,000€for€her€representation€of€Paula,€and€asked€that€Paula€pay€her€a€ð ðmereðð€fee€ofÏ$500.00€to€represent€Junne.Ð (#(# ÐÌà0  àAs€soon€as€Junne€and€Paula€left€Allisonððs€office,€Allison€went€to€see€you,€an€attorneyÏwith€an€office€in€her€building,€and€asked€that€you€give€her€advice€as€to€how€to€proceedÏwith€the€case,€and€as€to€whether€you€foresee€any€problems.Ð (#(# ÐÌò òWhat€advice€would€you€give?€€Discuss€fully.Ð ð@ ÐÌÓ  ÓREPRESENTATIVE€ANSWER€NO.€1ó óÐ Ð  ÐÓ  ÓÌAdvice€ÌÌ1.€€€€€€€€€The€Maryland€Rules€of€Professional€Conduct€govern€fees€charged€by€attorneys.€€Fees€¼à0  àshould€be€commensurate€with€experience,€skill,€time,€complexity€of€the€case€andÏcustomary€fees€in€the€area.€€A€fee€may€be€contingent€in€a€personal€injury€case€as€long€asÏthe€contingency€fee€is€in€writing€and€it€is€understood€by€the€client€how€fees€and€expensesÏare€to€be€handled.€€Here,€Allison€has€charged€a€flat€fee€for€the€personal€injury€action€ofÏboth€Junne€and€Paula.€€Contingency€fees€are€more€customary€than€flat€fees.€€However,€ifÏAllison€chooses€to€charge€a€flat€fee€it€must€be€reasonable€as€compared€to€her€skill€andÏexperience.€€Although€she€has€not€handled€personal€injury€cases,€this€does€not€make€herÏincompetent€ð!ð€only€inexperienced.€€Accordingly,€her€fee€for€Paula€is€rather€high.€€I€wouldÐ ,`'* Ðadvise€her€to€use€a€contingency€fee€instead.Ð (#(# ÐÌÌ2.€€€€€€€€€The€Rules€of€Professional€Conduct€also€govern€attorney€conflicts€of€interest.€€Here,€Paula€¼à0  àwas€also€cited€by€the€Trooper€as€a€contributing€factor€in€the€auto€accident.€€Paula€couldÏpotentially€be€adjudicated€the€tortfeasor,€making€Junneððs€interests€adverse€to€Paulaððs.€€IÏwould€advise€Allison€that€the€strong€possibility€exists€for€a€conflict€of€interest€betweenÏthe€two,€even€though€they€are€daughter€and€mother.Ð (#(# ÐÌ3.€€€€€€€€€The€Maryland€Rules€of€Professional€Conduct€forbid€attorneys€from€bringing€frivolous€¼à0  àsuits.€€Here,€Junne€sought€no€medical€care,€but€lost€three€weeks€at€a€summer€job.€€There€isÏnothing€from€a€medical€professional€saying€she€was€on€medical€leave€for€her€injuries.€ÏAllison€cannot€bring€a€claim€that€has€no€merit.€€I€would€advise€her€that€if€she€chooses€toÏrepresent€Junne,€she€needs€to€investigate€this€more€fully€to€be€assured€this€claim€is€notÏfrivolous.€Ð (#(# ÐÌ4.€€€€€€€€€Lastly,€Allison€has€neglected€to€advise€Junne€and€Paula€that€the€statute€of€limitations€has€¼à0  àrun€and€no€cause€of€action€can€be€filed€by€Paula.€€Junne,€however,€could€file€until€sheððsÏ21,€if€she€has€a€valid€claim.Ð (#(# ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€2ó óÐ pÀ ÐÓ  ÓÌDiscussionÌÌ1.€€€€€€€€€There€are€some€ethical€and€procedural€issues€that€I€would€discuss€with€Allison.€€The€first€¼à0  àis€whether€she€has€the€experience€to€accept€the€case.€€Even€though€Alison€has€onlyÏpracticed€family€law€thus€far,€she€can€accept€this€case€if€it€deals€with€a€subject€she€canÏlearn€with€due€diligence.€€The€facts€of€the€case€indicate€that€she€could€effectivelyÏrepresent€her€clients€with€research€on€her€part.€€The€fact€that€she€is€a€new€attorney€shouldÏnot€hinder€her€ability€to€do€this€research.Ð (#(# ÐÌ2.€€€€€€€€€Her€fee€for€Paula€strikes€me€as€too€high€and€not€based€on€any€reasonable€grounds.€€¼à0  àAllison€could€have€arranged€for€a€contingency€fee€or€she€could€have€set€an€hourly€fee€thatÏwas€reasonable€for€someone€with€her€experience.€€However,€if€she€wants€to€have€a€set€feeÏfor€the€case,€then€she€should€explain€why€$15,000€is€reasonable€for€her€time,€level€ofÏexperience€and€how€it€fares€compared€to€fees€in€the€local€legal€community€for€similarÏwork,€etc.€€She€also€should€explain€the€great€disparity€between€the€fees€for€Paula€andÏJunne.Ð (#(# ÐÌ3.€€€€€€€€€Allison€has€a€potential€conflict€of€interest€by€representing€both€Paula€and€Junne.€€Paula€¼à0  àmay€not€be€able€to€recover€based€on€contributory€negligence€while€Junne€does€not€appearÏto€be€contributorily€negligent.€€Junne€needs€to€consent€to€this€dual€representation€andÏshould€have€been€advised€to€seek€separate€counsel.Ð,`'*(#(# ЇÌ4.€€€€€€€€€The€Statute€of€Limitations€has€run.€€For€most€causes€of€action,€including€negligence,€the€¼à0  àSOL€is€3€years€from€the€time€when€the€action€arose.€€Paula€would€have€had€to€file€herÏcomplaint€by€June€15,€1998€to€satisfy€the€SOL.€€Paula€could€still€opt€to€file€the€complaintÏas€Dave€could€waive€this€failure€to€comply€with€it€by€not€asserting€it€as€an€affirmativeÏdefense€in€his€answer.€€The€SOL€for€Junne€has€not€run€because€she€was€under€a€legalÏdisability€when€the€accident€occurred€(i.e.,€she€was€a€minor).€€It€is€not€clear€whether€she€isÏnow€16€or€was€at€the€time€of€the€accident.€€She€can€file€suit€on€her€own€once€she€reachesÏthe€age€of€majority.Ð (#(# ÐÌ5.€€€€€€€€€The€final€issue€to€address€procedurally€is€whether€Maryland€courts€would€have€personal€¼à0  àjurisdiction€over€Dave.€€Personal€jurisdiction€will€exist€if€Dave€consents€to€it,€is€served€inÏMaryland€or€is€subject€to€it€based€on€Marylandððs€long€arm€jurisdiction.€€Because€theÏinjury€occurred€in€Maryland€the€issue€will€be€whether€this€one€contact€is€enough€to€satisfyÏthe€minimum€contacts€test.€€The€court€would€look€at€the€nature€of€the€contact,€whetherÏDave€purposefully€availed€himself€to€suit€in€Maryland,€Marylandððs€interest€inÏadjudicating€this€matter€and€the€convenience/hardship€to€Dave€to€defend€in€Maryland.Ð (#(# ÐÌà@tt%ìàò òòòQUESTION€IIóóˆÐ à Ðà@&&ìà(5€Points€„€10€Minutes)ˆÌÌó óà0  àAllison€files€suit€against€Dave€Driver€on€July€10,€1998€in€the€Circuit€Court€for€HarfordÐ `° ÐCounty.€€Driverððs€attorney€immediately€files€a€motion€for€change€of€venue€to€BaltimoreÏCity,€only€noting€that€ð ðit€would€be€inconvenientðð€for€Driver€to€attend€hearings€in€HarfordÏCounty.€€Allison€timely€files€an€objection€to€the€motion.Ð (#(# ÐÌò òHow€should€the€Court€rule€on€Driverððs€motion€for€change€of€venue?€€Discuss€fully.ó óÐ ` ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€1ó óÐ ð@ ÐÌÓ  ÓThe€Court€should€rule€on€Driverððs€motion€for€change€of€venue.ÌÌ1.€€€€€€€€€The€motion€to€transfer€venue€to€another€circuit€court€may€be€granted€if€the€case€could€¼à0  àhave€been€brought€in€the€other€circuit€and€the€transfer€serves€the€interests€of€justice.€ÏHere,€venue€is€proper€where€the€tort€occurred€or,€in€an€action€for€damages€against€aÏnonresident€individual,€in€any€county€in€the€State.€€Baltimore€City€is€therefore€a€properÏvenue.Ð (#(# ÐÌ2.€€€€€€€€€Just€because€it€is€proper,€the€court€need€not€grant€the€motion.€€The€motion€serves€the€¼à0  àinterest€of€justice€because€Baltimore€is€a€major€metropolitan€area€and€it€would€make€itÏmore€convenient€for€Dave€to€come€there€and€stay€for€the€trial.€€Perhaps€it€would€also€beÏeasier€for€the€other€witnesses€to€stay€there€also.€€The€motion€should€be€granted.€€Ð (#(# ÐÐ ,`'* ÐÓ  Óò òREPRESENTATIVE€ANSWER€NO.€2ó óÐ ° ÐÌÓ  ÓDiscussionÌÌà0  àBoth€plaintiffs€and€defendant€are€residents€€of€Pennsylvania.€€However,€the€accident€tookÏplace€in€the€Baltimore€vicinity.€€Baltimore€is€a€proper€venue€since€under€6„202€venue€isÏproper€where€the€cause€of€action€arose.€€However,€on€motion,€a€party€may€move€toÏtransfer€venue€due€to€forum€non€conveniens.€€The€Court€may€transfer€the€action€to€anyÏother€court€where€the€action€could€have€been€brought€for€the€convenience€of€the€partiesÏand€in€the€interest€of€justice.Ð (#(# ÐÌà0  àThe€court€will€grant€the€change€of€venue,€in€its€discretion,€if€it€finds€the€action€could€haveÏbeen€brought€in€Baltimore€City€and€this€serves€justice.Ð (#(# ÐÌà@MM$ìàò òòòQUESTION€IIIóóó óˆÐ Ð  Ðà@&&ìàò ò(5€Points€„€10€Minutes)ó óˆÐ À ÐÌà0  àCyndy€Jones€is€employed€as€a€police€officer€for€the€Town€of€Easton,€Maryland.€€OnÏJanuary€5,€1998,€while€driving€her€patrol€car,€on€duty,€her€vehicle€was€rear€ended€by€aÏvehicle€driven€by€Dave€Drew.€€Both€vehicles€were€damaged€as€a€result€of€the€accidentÏand€Cyndy€sustained€personal€injuries.Ð (#(# ÐÌà0  àOn€May€1,€1998,€the€Town€filed€suit€against€Dave€in€the€District€Court,€seeking€$1,800Ïreimbursement€for€property€damages€to€its€vehicle.€€On€June€30,€1998,€Cyndy€filed€suitÏagainst€Dave€in€the€Circuit€Court,€seeking€$35,000€in€damages€for€the€personal€injuriesÏshe€sustained.Ð (#(# ÐÌà0  àOn€July€10,€1998,€after€hearing€from€both€drivers,€the€District€Court€ruled€in€favor€ofÏDave€Drew.€€On€August€11,€1998,€Dave€Drewððs€attorney€filed€a€motion€for€summaryÏjudgment€in€Cyndyððs€action,€claiming€that€her€suit€is€barred€by€the€District€Courtððs€ruling.Ð (#(# ÐÌò òHow€should€the€court€rule€on€Dave€Drewððs€motion€and€why?€€Discuss€Fully.Ð À! ÐÌÓ  ÓREPRESENTATIVE€ANSWER€NO.€1ó óÐ  #ð! ÐÓ  ÓÌOpinion€on€how€the€court€should€rule€on€Dave€Drewððs€motion.ÌÌ1.€€€€€€€€€The€question€is€whether€Cyndy€will€be€collaterally€estopped€from€bringing€suit€because€¼à0  àthe€Townððs€action€was€dismissed.€€In€order€for€an€issue€to€be€collaterally€estopped€theÏsame€issue€must€have€been€actually€litigated€in€the€first€suit€and€must€have€beenÏnecessary€to€its€judgment.€€As€well,€the€same€party€or€someone€in€privity€must€have€beenÏthe€litigant.€€Ð (#(# ÐÐ ,`'* Ð2.€€€€€€€€€Certainly€Cyndy€testified€in€the€first€proceeding€,€the€same€issue€(negligence)€was€¼à0  àlitigated,€and€was€necessary€to€the€judgment.€€However,€Cyndy€and€the€Town€are€not€theÏsame€and€the€Town€may€not€have€vigorously€represented€Cyndyððs€interest€in€its€ownÏaction.€€Further,€the€district€courtððs€rules€on€discovery€are€much€more€limited€than€theÏcircuit€courtððs.€€As€well,€Cyndy€had€no€opportunity€for€a€jury€to€hear€her€case.€€For€bothÏof€these€reasons,€the€court€should€deny€Daveððs€motion.€Ð (#(# ÐÌÌÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€2ó óÐ  p  ÐÓ  ÓÌDiscussionÌÌ1.€€€€€€€€€There€are€two€issues€to€be€resolved.€€First,€did€the€Townððs€suit€result€in€res€judicata€for€¼à0  àCyndyððs€suit.€€Second,€did€the€Townððs€suit€collaterally€estop€Cyndyððs€suit.€€Res€judicataÏprinciples€bar€re„adjudication€of€the€same€causes€of€action€by€the€same€parties€or€those€inÏprivity.€€Causes€of€action€are€loosely€defined€as€claims€arising€out€of€the€same€transactionÏor€events.€€In€this€case,€the€first€element€is€satisfied.€€Both€suits€arise€out€of€the€sameÏcollision.€€The€second€requirement€is€the€identity€of€the€parties.€€The€employer/employeeÏrelationship€is€one€of€legal€privity.€€However,€Cyndy€is€not€suing€in€her€capacity€as€aÏpolice€officer.€€She€is€suing€in€her€individual€capacity€and€it€is€unlikely€that€her€personalÏinterests€were€sufficiently€represented€in€the€original€suit.€€Thus€Cyndyððs€action€shouldÏnot€be€barred€under€the€principles€of€res€€judicata.Ð (#(# ÐÌ2.€€€€€€€€€The€second€issue€is€collateral€estoppel.€€Its€requirements€are€that€the€issue€be€identical,€¼à0  àactually€litigated€and€the€issueððs€resolution€was€necessary€for€the€judgment.€€CollateralÏestoppel€may€be€used€offensively€or€defensively.€€To€succeed€on€a€motion€for€summaryÏjudgment€there€must€be€no€disputed€issues€of€material€fact.€€In€this€case€it€isnððt€clearÏwhether€the€elements€of€Cyndyððs€claims€have€been€actually€litigated,€resolved€andÏnecessary€for€the€previous€judgment.€€Ð (#(# ÐÐ  Ð  ÐÔ‡ô©õXX_ÏÔÑ€ dOÑà@bb'ìàÔ‡ ôàÅõõô©Ôò òÔ#† Xæ)Xõ ôàÅ ‘#ÔPART€€CˆÐ ° Ðó óÔ#†X_ÏXX Xæ)â‘#ÔÌò òà@››%ìàòòQUESTION€Ióóó óˆÐ à Ðò òà@ôôìà(19€Points€„€25€Minutes)ó óˆÐ €Ð ÐÌà0  àAl€and€Bev€were€married€in€1976.€€Four€years€later€they€purchased€a€home€in€Bel€Air,ÏHarford€County,€Maryland.€€Their€marriage€suffered€from€the€poor€financial€decisionsÏthey€made.€€They€separated€in€1997€and€were€ultimately€divorced€on€June€15,€1999.Ð (#(# ÐÌà0  àA€separation€agreement€provided€that€Al€was€to€convey€his€interest€in€the€marital€home€toÏBev.€€Bev€in€turn€wishes€to€sell€the€home€and€Charles€is€interested€in€purchasing€it.ÏCharles€contacted€Second€National€Mortgage€Company€for€a€loan€and€the€mortgageÏcompany€has€retained€€you€to€do€a€title€search€of€the€property.€€Ð (#(# ÐÌà0  àThe€land€records€reveal€the€following:Ð (#(# ÐÌà0  àThe€deed€for€the€property€is€in€the€name€of€Al€and€Bev.Ð (#(# Ðà  àÌà0  àThere€is€a€District€Court€Judgment€recorded€in€the€land€records€against€Al€in€favor€ofÏABC€Credit€Card€Company€in€the€amount€of€$3,000.€€It€is€dated€April€21,€1989.Ð (#(# ÐÌà0  àThere€is€a€right€of€way€in€favor€of€the€next€door€neighbor,€Jones,€across€the€rear€of€theÏproperty€to€provide€additional€access€to€Jonesðð€garage.€€It€read€as€follows:Ð (#(# ÐÌÓB.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜŒXBÓà0 Ü à€€€€€€ð ðAl€and€Bev€grant€to€Jones€the€right€of€ingress€and€egress€across€the€rear€ten€(10)€feet€of€€€€Ï€€€€€€our€property€to€provide€access€to€his€garage.ððÐ pÜ(#Ü(# ÐÒ°ÒÓB(Ü Ü4Œ ä <”ìDœôL¤ÜÜ‚,Œ ŠXBÓÌà0  àJones€sold€the€property€in€1991.Ð Ð Ð  ÐÒ°ÒÓ?+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‹X?ÓÌà0  àThere€are€two€judgments€against€Al€and€Bev€jointly€and€severally€in€favor€of€XYZ€Bank.€ÏOne€is€a€judgment€for€$2,000,€recorded€January€5,€1986.€€The€other€is€in€the€amount€ofÏ$2,500€and€is€dated€February€10,€1988.Ð (#(# ÐÌà0  àFinally,€EZ€Furniture€has€filed€suit€against€Bev€for€$21,000€for€furniture€purchased€whileÏshe€and€Al€were€separated€but€before€they€were€divorced.€€Trial€is€set€for€August€1,€1999.Ð (#(# ÐÌò òAs€a€Harford€County€lawyer€admitted€to€the€Maryland€Bar,€you€are€requested€to€adviseÐ p&À!$ Ðthe€mortgage€company€as€to€what€steps€are€necessary€for€the€proposed€mortgage€to€be€aÏfirst€lien€on€the€property.€€Explain€fully.ó óÐ P( #& ÐÌÓ  Óò òREPRESENTATIVE€ANSWER€NO.€1ó óÐ 0*€%( ÐÌÓ  Óà0  àThe€first€step€in€creating€a€first€lien€on€the€property€of€the€mortgage€company€would€be€toÐ ,`'* ÐÑ ƒA dOÑâ âÑH°ÑÑH°Ñâ  âÑ°HÑÑ°HÑâ  âÑ  Ñhave€Al€transfer€the€property€by€deed€to€Bev€alone.€€When€Al€and€Bev€were€married€title€toÏthe€property€was€presumed€to€be€held€as€tenants€by€the€entireties.€€This€means€an€individualÏcreditor€of€the€debtor€spouse€cannot€get€to€the€property.€€Here,€the€ABC€Credit€CardÏjudgment€would€not€attach€to€the€property€so€long€as€it€is€held€by€Al€and€Bev.€€A€creditorÏcannot€place€a€lien€on€land€while€it€is€held€by€tenants€by€the€entireties.€€However,€once€theÏdivorce€occurred€the€tenancy€is€severed€and€the€property€becomes€a€tenancy€in€common.€ÏABC€Credit€would€have€a€lien€against€€AlÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@" #ÔÔ‡ Xæ)XXX_ÏÔs€interest€in€the€property€which€would€haveÐ P   Ðto€be€satisfied€prior€to€closing.Ð (#(# ÐÌà0  àThe€1986€judgment€against€Al€and€Bev€jointly€and€severally€is€valid€for€12€years.€ÏBecause€more€than€12€years€have€passed€since€XYZ€filed,€€their€filing€has€lapsed.€€TheyÏwould€have€to€have€filed€a€Continuation€Statement€within€six€months€of€the€expirationÏof€the€filing.€€The€1988€judgment€against€Al€and€Bev€is€a€judgment€against€both€andÏwould€create€a€lien€on€the€tenancy€by€the€entirety€property.€€Because€Al€and€Bev€bothÏacted€together€in€incurring€this€judgment,€the€judgment€is€validly€attached€to€the€landÏeven€where€conveyed€to€Bev€alone.€These€debts€would€have€to€be€satisfied€at€the€timeÏof€closing€and€before€recordation€of€the€judgment.€€The€EZ€Furniture€does€not€have€aÏlien€against€the€property€because€their€suit€has€not€been€finalized.€€Until€they€reduceÏtheir€claim€to€judgment€and€record€it€they€have€no€interest€in€BevÔ#†X_ÏXX Xæ)Y #ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"g¤#ÔÔ‡ Xæ)XXX_ÏÔs€real€property.€€SoÐ à Ðlong€as€Second€National€is€recorded€before€EZ€obtains€a€judgment.€€Ð (#(# ÐÌà0  àThe€right€of€way€will€not€prevent€the€mortgage€company€from€having€a€first€lien€on€theÏproperty.€€The€right€of€way€may€be€an€easement€if€it€is€recorded€and€the€partiesÏintended€it€to€run€with€the€land.€€However,€because€it€was€granted€personally€from€AlÏand€Bev€to€Jones,€the€courts€may€view€this€right€as€more€in€the€nature€of€a€license.€ÏEither€way,€the€right€of€way€does€not€affect€the€marketability€of€the€title€and€does€notÏprevent€the€mortgage€company€from€obtaining€a€first€lien€on€the€property.Ð (#(# Ѐ€€€¹Ó  Óò òREPRESENTATIVE€ANSWER€NO.€2ó óÐ ð@ ÐÌÓ  Óà0  àAl€and€Bev€(A€&€B)€purchased€the€house€in€1980€while€married€and€the€deed€isÏregistered€in€both€their€names.€€They€were€therefore€tenants€by€the€entireties€havingÏestablished€the€five€unities€„€time,€title,€interest,€possession€and€marriage.€€This€meantÏneither€party€could€unilaterally€sever€tenancy.€€A€$3,000€judgment€against€Al€alone€byÏABC€Corp.,€failed€to€sever€the€tenancy.€€It€also€did€not€attach€to€the€property€becauseÏthe€property€was€held€€as€tenants€by€the€entireties.€€Upon€divorce,€the€property€wasÏsevered€and€A€&€B€became€tenants€in€common.€€The€judgment,€if€recorded,€would€thenÏbecome€a€lien€on€AÔ#†X_ÏXX Xæ)­¤#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"Sª#ÔÔ‡ Xæ)XXX_ÏÔs€Ô#†X_ÏXX Xæ)™ª#ÔÔ‡ Xæ)XXX_ÏÔinterest€in€the€property.€€This€judgment€would€have€to€beÐ `'°"% Ðdisposed€of€in€some€manner€prior€to€the€closing.Ð (#(# ÐÌà0  àThe€1986€judgment€against€both€A€&€B€was€valid€for€12€years.€€Because€more€than€12Ïyears€passed€since€XYZ€filed,€their€filing€has€lapsed.€€They€would€have€had€to€file€aÏContinuation€Statement€within€six€months€of€the€expiration€of€the€filing.€€The€1988Ð ,`'* Ðjudgment€against€A€&€B€is€a€judgment€against€both€during€the€tenancy€by€the€entirety.€ÏBecause€A€&€B€both€acted€together€in€incurring€this€judgment,€the€judgment€is€validlyÏattached€to€the€land€even€when€it€is€conveyed€to€B€alone.€€If€Second€National€wants€toÏhave€a€first€lien,€this€judgment€must€be€paid€prior€to€or€at€closing€or€ask€the€judgmentÏcreditor€to€subordinate€their€lien€to€Second€National€in€exchange€for€someÏconsideration.€€The€EZ€Furniture€claim€against€B€for€$21,000€has€not€been€reduced€toÏjudgment€and€recorded.€€Therefore,€it€has€no€interest€in€BÔ#†X_ÏXX Xæ)ݪ#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@" ¯#ÔÔ‡ Xæ)XXX_ÏÔs€real€property,€so€long€asÐ P   ÐSecond€National€records€before€EZ€obtains€a€judgment.€€Ð (#(# ÐÌà0  àJones€has€valid€right€of€way€on€the€property€and€his€successor€in€interest€also€holds€thisÏright€of€way.€€The€easement€was€validly€recorded.€€This€right€of€way€does€not€haveÏSecond€NationalÔ#†X_ÏXX Xæ)O¯#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"Ù°#ÔÔ‡ Xæ)XXX_ÏÔs€priority€with€regard€to€its€lien.€€Second€National€can€foreclose€andÐ P  Ðsell€the€property€but€the€easement€would€survive€the€foreclosure.Ð (#(# ÐÌà0  àTo€insure€that€Title€passes€properly,€Second€National€should€make€sure€that€A€&€B€Ïtransfer€title€to€B€alone€before€she€transfers€title€to€Charles.Ð (#(# ÐÓ  ÓÌò òòòQUESTION€IIóóó óÐ  ð Ðò ò(16€Point€„€20€Minutes)ó óÐ à ÐÌÓ  Óà0  àBusiness€Properties,€Inc.€(BPI),€a€Maryland€corporation,€has€a€real€estate€brokerageÏfirm€specializing€in€the€sale€of€ongoing€€businesses€and€business€properties.€€€BPI€hasÏan€independent€contractor€agreement€with€Alan,€a€licensed€broker€who€owns€andÏoperates€a€personal€service€business€and€works€closely€with€BPI€on€all€of€its€businessÏsales€transactions.€€His€agreement€with€BPI€includes€a€provision€which€states€that€Ô#†X_ÏXX Xæ)±#ÔÔ‡ Xæ)XXX_ÏÔAlanÐ 0€ Ðis€not€the€agent€of€BPI,€but€an€independent€contractor€not€authorized€to€make€aÏcontract,€agreement,€warranty€or€representation€on€behalf€of€BPI.€Ð (#(# Ðà  àÌà0  àWhen€he€retired€from€government€service€in€March€1997,€Paul€became€interested€inÏpurchasing€a€small€business€in€Maryland.€€€In€July€of€that€year,€Paul€saw€a€newspaperÏadvertisement€placed€by€BPI€for€the€sale€of€a€small€business€in€Howard€County,ÏMaryland.€€Paul€called€the€listed€number€and€talked€to€Alan.€€Thereafter,€Paul€andÏAlan€visited€the€advertised€business€and€two€others€in€the€same€county€which€wereÏpotentially€available€for€sale,€but€€for€which€BPI€had€no€listing€agreement.€€One€of€theseÏwas€the€Free€Spirit€Shop€owned€by€Carl.€€Paul€indicated€an€interest€in€purchasing€theÏbusiness€and€Alan€met€with€the€owner,€Carl,€the€next€day€and€obtained€a€listingÏagreement€authorizingò ò€ó ósale€of€his€business€and€property€to€ð ðPaul€only.ðð€€TheÐ p&À!$ Ðagreement€further€provided€for€payment€by€Carl€€of€a€commission€to€BPI€in€the€eventÏthe€business€was€sold€to€Paul.€A€€subsequent€sales€contract€called€for€settlement€onÏOctober€6,€1997.€€Ð (#(# Ðà  àÌà0  àIn€early€September,€Paul€asked€to€review€the€financial€statements€of€the€business€andÏCarl€arranged€to€have€Alan€and€Paul€visit€the€office€of€CarlÔ#†X_ÏXX Xæ)ô´#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"—º#ÔÔ‡ Xæ)XXX_ÏÔs€accountant€to€review€theÐ ,`'* Ðmaterial€which€was€provided€to€them.€€Neither€Carl€nor€his€accountant€was€presentÏduring€this€visit.€€Alan€assured€Paul€that,€he€was€experienced€in€analyzing€andÏevaluating€the€financial€condition€of€businesses€such€as€the€Free€Spirit€Shop.€€AlanÏconducted€a€review€of€the€records€and€made€representations€to€Paul€about€what€thoseÏrecords€meant€and€the€profitability€of€the€business.€€In€a€confidential€written€evaluationÏprepared€as€a€result€of€the€meeting,€Alan€stated€that€the€business€had€been€generatingÏaverage€profits€of€$70,000€per€year€over€the€past€four€years.€€Neither€Carl€nor€hisÏaccountant€made€any€representations€to€Paul€at€any€time€regarding€the€profitability€ofÏthe€business,€nor€were€they€aware€of€the€representations€made€to€Paul€by€Alan.€€€InÏreliance€on€the€profit€analysis€made€by€Alan,€Paul€purchased€the€Free€Spirit€Shop€€onÏOctober€6,€1997.€€Ð (#(# Ðà  àÌà0  àAfter€operating€the€business€and€compiling€financial€information€for€over€a€year,€PaulÏrealized€that€his€confidence€in€Alan€had€been€misplaced€and€that€the€evaluation€AlanÏhad€given€him€was€erroneous.€€Profits€were€under€25%€of€the€amount€reported€byÏAlan.€€On€that€basis,€Paul€paid€substantially€more€for€the€business€than€it€was€actuallyÏworth.€€ò òPaul€has€consulted€you,€a€practicing€attorney€in€Maryland,€for€advice€as€to€hisÐ ° Ðrights€against€Carl,€Alan,€and€BPI.€€€€Paul€would€like€to€rescind€the€contract€with€CarlÏor,€in€the€alternative,€recover€damages€based€upon€the€actual€value€of€the€business€andÏloss€of€income.€ó óЀÐ(#(# Ðà  àÌà0  àò òOn€the€facts€set€forth,€advise€Paul€as€to€the€potential€liability€of€Carl,€Alan€and€BPI.€€ó óÐ`°(#(# ÐÓ  ÓÌÓ€Óò òREPRESENTATIVE€ANSWER€NO.€1Ð @ ÐÓ€Óó óÓ  Óà0  àAlan.€€Paul€can€bring€€a€cause€of€action€against€Alan€for€intentional€and€negligentÐ ¨ø Ðmisrepresentation.€€In€this€case,€Alan€misrepresented€the€financial€condition€of€theÏCompany€after€assuring€Paul€that€he€knew€how€to€interpret€corporate€finance€reports.€ÏThis€information€was€material€to€the€amount€Paul€would€pay€and€Paul€relied€onÏAlanÔ#†X_ÏXX Xæ)ݺ#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"Ä#ÔÔ‡ Xæ)XXX_ÏÔs€statements€to€his€detriment.€€Paul€will€have€to€show€that€his€reliance€wasÐ h¸ Ðreasonable,€which€he€may€have€trouble€doing,€since€he€could€have€had€an€outsideÏaccountant€handle€the€evaluation,€but€based€on€AlanÔ#†X_ÏXX Xæ)JÄ#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"pÅ#ÔÔ‡ Xæ)XXX_ÏÔs€assurances,€he€should€be€ableÐ H!˜ Ðto€recover.Ð (#(# ÐÌà0  àPaul€can€also€bring€an€action€for€negligent€misrepresentation.€€Based€on€theirÏrelationship€and€the€fact€that€Alan€represented€that€he€was€an€expert€€at€looking€atÏthese€books,€Alan€had€a€duty€to€provide€accurate€information€to€Paul€about€theÏtransaction.€€He€didnððt€and€as€discussed€above€there€was€reliance€and€damages.€€InÏselling€the€business,€Alan€had,€in€essence,€warranted€that€his€representations€wereÏaccurate€and€Paul€can€sue€him€based€on€those€representations.€Ð (#(# Ðà0  àBPI.€€€A€principal€is€liable€for€contracts€entered€into€by€its€agents€if€there€is€a€principalÏagent€relationship,€the€agent€is€acting€within€the€scope€of€the€agency€and€within€hisÏauthority.€€In€this€case,€there€was€no€actual€authority€since€Alan,€by€contract,€was€anÐ ˜+è&* Ðindependent€contractor€without€authority€to€act€on€behalf€of€BPI.€€Ð (#(# ÐÌà0  àHowever,€Paul€can€argue€successfully€that€Alan€had€apparent€authority.€€ApparentÏauthority€arises€when€the€principal€cloaks€the€agent€with€authority,€and€the€third€partyÏreasonably€relies€on€that€authority.€€Here,€Paul€dialed€the€number€listed€for€BPI€andÏAlan€answered.€€Alan€acted€like€an€employee€and€never€disclosed€his€true€relationshipÏwith€BPI.€€The€agreement€authorized€Carl€to€sell€to€PAUL€only€and€the€commissionÏwent€to€BPI€and€not€Alan.€Ð (#(# ÐÌà0  àBased€on€the€apparent€authority€BPI€would€be€responsible€for€AlanÔ#†X_ÏXX Xæ)¶Å#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"Ì#ÔÔ‡ Xæ)XXX_ÏÔs€conduct.€€Carl.€Ð  p  ЀCarl€made€no€false€representations€and€allowed€Paul€to€review€his€books.€€Carl€had€noÏfiduciary€relationship€requiring€disclosure.€€There€was€a€mistake€but€it€went€only€to€theÏvalue€of€the€subject€matter€and€was€unilateral.€€The€price€paid€does€not€seem€so€hugelyÏdisproportionate€to€the€value€of€the€business€that€Carl€would€know€that€the€other€sideÏmade€a€mistake€in€entering€into€the€contract.€€Ð (#(# ÐÌà0  àRescission€is€not€likely€in€this€case€because€Carl€was€unaware€of€AlanÔ#†X_ÏXX Xæ)LÌ#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"®Î#ÔÔ‡ Xæ)XXX_ÏÔs€representationsÐ ° Ðand€he€did€not€actively€engage€in€any€fraud€or€misrepresentation.€€Ð (#(# ÐÓ€Óò òÌÓ  ÓREPRESENTATIVE€ANSWER€NO.€2ó óÐ øH ÐÓ€ÓÓ  Óà0  àAlan€is€liable€to€Paul€for€actively€misrepresenting€the€financial€information€when€heÏwas€aware€that€Paul€would€rely€on€his€statements.€€AlanÔ#†X_ÏXX Xæ)ôÎ#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"ÂÐ#ÔÔ‡ Xæ)XXX_ÏÔs€actions€satisfy€all€of€theÐ P  Ðelements€of€fraud€because€he€knowingly€made€a€material€misrepresentation€to€PaulÏupon€which€Paul€reasonably€relied€to€his€detriment.Ð (#(# ÐÌà0  àBPI€may€be€liable€to€Paul€and€likely€is€because€Alan€regularly€operated€under€theÏapparent€authority€of€BPI.€€Evidence€that€Paul€reasonably€viewed€as€indicating€AlanÔ#†X_ÏXX Xæ)Ñ#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"ÈÒ#ÔÔ‡ Xæ)XXX_ÏÔsÐ P Ðagency€for€BPI€is€seen€in€the€fact€that€Paul€originally€responded€to€a€BPI€ad€and€calledÏthe€BPI€business€number.€€This€in€combination€with€AlanÔ#†X_ÏXX Xæ)Ó#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"öÓ#ÔÔ‡ Xæ)XXX_ÏÔs€regular€dealings€with€BPI,Ð à0 Ðhis€willingness€to€hold€himself€out€as€an€agent€of€BPI€and€BPIÔ#†X_ÏXX Xæ)<Ô#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"íÔ#ÔÔ‡ Xæ)XXX_ÏÔs€willingness€to€haveÐ Ð  ÐAlan€act€as€an€agent€makes€him€legally€an€agent.€€Ð (#(# ÐÌà0  àCarl€is€not€likely€liable.€€Although€BPI€and€Alan€are€technically€CarlÔ#†X_ÏXX Xæ)3Õ#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@";Ö#ÔÔ‡ Xæ)XXX_ÏÔs€agents,€CarlÐ  #ð" Ðknew€nothing€of€AlanÔ#†X_ÏXX Xæ)Ö#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"úÖ#ÔÔ‡ Xæ)XXX_ÏÔs€fraud.€€Moreover,€Carl€did€not€himself€actively€conceal€or€failÐ $à# Ðto€disclose€any€information.€€Carl€may€have€been€aware€that€he€was€receiving€a€highÏprice€for€the€business,€but€this€is€insufficient€to€ground€liability€for€fraud.Ð (#(# ÐÌà0  àPaul€will€not€be€able€to€rescind€the€contract€with€Carl€€because€Carl€is€not€guilty€of€anyÏculpable€behavior.€€Paul€will,€however,€be€able€to€collect€damages€from€Alan€and€€BPI,Ïjointly€and€severally,€for€the€amount€by€which€he€overpaid€for€Free€Spirit€Shop€as€aÏresult€of€AlanÔ#†X_ÏXX Xæ)@×#ÔÔ‡X@"XXX_ÏÔððÔ#†X_ÏXXX@"´Ù#ÔÔ‡ Xæ)XXX_ÏÔs€fraudulent€manipulation€of€the€books.ò òÐ +p&*(#(# ÐÔ#†X_ÏXX Xæ)úÙ#Ôó óÐ ,`'+ ÐÐ  ° ÐÑ8°ÑÑ8°ÑÔ‡XVKXXX_ÏÔÑ€dOÑà@||'ìàò òPART€Dó óˆÐ 8 ÐÌà@››%ìàà@@››%ìàò òòòQUESTION€IóóˆÐ Ø Ðà@õõìà(15€Points€„€20€Minutes)ó óˆÐ üÄ Ðò òÌó óà0  àWhitley€was€an€armed€security€guard€employed€by€Blinkððs€Security,€Inc.€assigned€to€a€branchÐ Ôœ Ðof€ABC€bank€located€in€downtown€Annapolis,€Maryland.€€For€several€years,€with€the€fullÏknowledge€of€Jane,€the€branch€manager€of€the€bank,€Whitley€had€made€it€a€practice€toÏperform€his€duties€with€an€unloaded€revolver.€€His€rationale€was€that€the€bank€had€never€beenÏrobbed,€and€that€the€mere€presence€of€the€revolver€was€effective€as€a€deterrent€to€any€would„¼be€robber.Ð (#(# ÐÌà0  àOn€July€1,€1998,€Greg€and€Jerry€entered€the€bank.€€Greg€went€up€to€the€teller€and€handed€herÏa€note€stating€ð ðthis€is€a€stickup.€€Give€me€all€of€your€20's€and€50's.€€Donððt€raise€any€alarm€orÏI€will€shoot€you.ðð€€Greg€did€not€display€a€weapon.Ð (#(# ÐÌà0  àAs€the€teller€was€filling€a€bag€with€the€money,€Susie,€a€customer€in€the€bank,€noticed€whatÏwas€happening€and€started€screaming.€€Jerry,€who€was€standing€near€Whitley,€pulled€a€pistolÏand€started€shooting.€€Whitley€pulled€his€revolver,€but,€because€it€was€not€loaded,€he€wasÏunable€to€stop€Jerry€from€firing.€€Both€Greg€and€Jerry€escaped.Ð (#(# ÐÌà0  àDuring€the€incident,€Susie€was€shot€in€the€spine€by€Jerry€and€has€suffered€serious€permanentÏinjuries€which€render€her€unable€to€care€for€her€two€year€old€daughter€or€to€have€sexualÏrelations€with€her€husband.Ð (#(# ÐÌò òSusie€and€her€husband€have€come€to€you,€a€Maryland€attorney,€for€advice€concerning€theirÐ D  Ðpossible€actions.ÌÌWhat€advice€would€you€give€them?€€Explain€fully.ó óÐ Ð ÐÌà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€1ó óˆÐ ਠÐÌà  àSusie€and€her€husband€may€sue€Jerry€for€civil€damages€based€on€the€tort€of€battery.€€Battery,€¼à0  àan€intentional€tort,€is€the€offensive€touching€of€another€person.€€Jerry€shot€Susie€and€will€beÏheld€liable.€€Jerry€has€no€credible€defense€that€he€can€claim.€€It€is€unlikely€that€Susie€willÏrecover€much€money€from€Jerry€even€if€she€receives€a€substantial€judgment.€€Most€bankÏrobbers€are€not€rich.€€I€would€recommend€that€she€let€the€criminal€justice€system€deal€withÏJerry.Ð (#(# Ðà@ìì*ìàˆÌà  àSusie€should€sue€Whitley,€individually,€as€well€as€his€employer,€Blink's€Security,€Inc.,€under€¼à0  àthe€doctrine€of€respondeat€superior,€for€negligence.€€Normally€one€has€no€duty€to€rescue€orÏcome€to€the€aid€of€another.€€Whitley,€however,€had€a€duty€based€upon€contract.€€He€was€paidÏto€be€an€armed€security€guard.Ð (#(# ÐÐ Ü+¤'+ ÐÑdOÑâ âÑ°8ÑÑ°8Ñâ âÑ  Ñà  àDuty€and€breach€are€only€two€of€the€elements€of€a€claim€for€negligence.€€Susie€will€also€have€¼à0  àto€show€causation€(both€actual€and€proximate).€€Direct€causation€will€be€established€if€it€canÏbe€shown€that,€had€Whitley€been€armed,€he€could€have€prevented€Jerry€from€shooting€Susie.€ÏProximate€causation€deals€with€foreseeability€and€fairness€in€holding€a€defendant€liable.€€ItÏcertainly€is€foreseeable€that€a€bank€robber€will€be€armed.€€In€fact,€it€might€also€be€expectedÏsince€most€people€know€that€bank€security€guards€are€armed.Ð (#(# ÐÌà  àSusie€must€also€prove€her€damages€which€is€easy.€€She€can€recover€all€of€her€medical€bills€¼à0  àand€for€pain€and€suffering€as€ordinary€damages.€€She€may€also€be€able€to€recover€the€cost€ofÏproviding€childcare.€€Her€husband€can€sue€for€loss€of€consortium€(loss€of€sexual€relationsÏwith€his€wife€and€recover€damages).Ð (#(# ÐÌà  àBlinks€Security,€Inc.€will€be€liable€for€Whitley's€negligence€under€the€doctrine€of€respondeat€¼à0  àsuperior.€€This€doctrine€is€based€upon€the€employer„employee€relationship€and€is€appropriateÏwhere€there€is€assent,€benefit€and€control.€€All€three€are€satisfied:€assent(€he€was€employedÏby€them€under€a€contract),€benefit€(the€company€was€being€paid€for€his€services€to€ABCÏBank)€and€control€(they€probably€were€responsible€for€his€training,€uniforms€and€equipment).€ÏIn€addition,€he€was€doing€his€job„providing€security„€which€is€within€the€scope€of€hisÏemployment.€€Ð (#(# ÐÌà  àBlinks€may€try€to€argue€that€he€was€acting€beyond€the€scope€of€his€employment€by€not€¼à0  àhaving€a€loaded€weapon.€€We€would€have€to€know€the€company's€regulations€and€policiesÏconcerning€that€matter.Ð (#(# ÐÌà  àWhitley€and€Blinks€have€the€defense€of€contributory€negligence€against€both€Susie€and€her€¼à0  àhusband€should€they€choose€to€sue€for€loss€of€consortium.€€Contributory€negligence€is€anÏabsolute€bar€to€recovery€in€Maryland€and€Susie€won't€be€able€to€collect€damages€if€theÏdefendants€can€show€that€she€was€at€fault€in€the€slightest.€€Whether€Susie€was€at€fault€is€aÏquestion€of€fact€for€the€jury€to€decide.€€It€is€possible€since€her€screaming€started€theÏcommotion€that€led€to€her€injury€and€we€are€told€that€Jerry€didn't€flash€or€brandish€a€weaponÏprior€to€her€screaming.Ð (#(# ÐÌà  àThere€is€no€special€duty€or€rule€required€for€banks,€unlike€for€innkeepers€and€common€¼à0  àcarriers.€€Also,€armed€security€guards€are€employed€primarily€to€protect€against€robbery,€notÏinjuries€to€customers.€€Was€Jane€negligent€for€not€insisting€that€Whitley€load€his€weapon?€ÏLiability€against€Jane€and€the€bank€will€be€harder€to€prove€than€against€Whitley€and€Brinks.€ÏSusie€and€her€husband€should€file€a€negligence€suit€against€them€nonetheless.Ð (#(# ÐÌà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€2ó óˆÐ ¸'#& ÐÌà0  àI€would€advise€Susie€and€her€husband€that€they€have€possible€claims€against€Whitley,€ABCÏBank€and€Blink's€Security€arising€out€of€the€July€1,€1998€bank€robbery€in€which€Susie€wasÏshot€and€disabled.€€Susie€may€also€have€a€chance€of€recovery€based€in€tort€against€Greg€andÐ h+¸&* ÐJerry€although€it€is€doubtful€Susie€will€succeed€in€getting€Greg€and€Jerry€into€a€courtroomÏor€that€Greg€and€Jerry€even€have€any€money€other€than€the€money€stolen€from€the€bank.Ð (#(# ÐÌà0  àSusie€may€be€able€to€recover€for€her€injuries€from€Whitley€based€upon€a€negligence€claim.€ÏNegligence€will€be€found€where€the€defendant€owed€the€plaintiff€a€duty,€the€defendantÏbreaches€that€duty,€and€the€breach€is€the€factual€and€legal€cause€of€the€resulting€harm.Ð (#(# ÐÌà0  àWhitley€had€a€duty€as€a€security€guard€for€the€bank€to€take€reasonable€steps€to€protect€theÏbank's€customers.€€Whitley,€in€not€carrying€a€loaded€weapon,€was€arguably€in€breach€of€theÏduty€owed€to€customers€of€the€bank.€€Whether€Whitley's€breach€was€the€proximate€cause€ofÏSusie's€injury€may€be€proven€if€Susie's€injury€wouldn't€have€occurred€but€for€Whitley'sÏbreach.€€Whitley€could€have€shot€Jerry€before€Jerry€shot€Susie,€thus€satisfying€the€"but€for"Ïtest.Ð (#(# ÐÌà0  àIn€addition,€there€must€be€legal€cause€in€order€to€hold€Whitley€liable.€€Here,€Whitley's€breachÏin€not€carrying€a€loaded€gun€could€foreseeably€result€in€a€customer€being€shot.€€WhitleyÏshould€have€known€that€a€robbery€was€possible€necessitating€the€need€for€a€loaded€weaponÏto€defend€the€bank€and€its€customers.Ð (#(# ÐÌà0  àThe€final€element€of€the€negligence€claim€against€Whitley€is€injury€which€Susie€did€suffer.€ÏShe€is€no€longer€able€to€care€for€her€child€or€have€sexual€relations€with€her€husband€due€toÏher€spinal€injury€resulting€from€being€shot€by€Jerry.Ð (#(# ÐÌà0  àTherefore,€Susie€has€€strong€likelihood€of€success€based€upon€a€negligence€claim€forÏWhitley's€failure€to€carry€a€loaded€gun.€€Under€the€circumstances,€Whitley€may€be€able€toÏavoid€personal€liability€for€his€negligence€due€to€his€status€as€an€agent€of€either€the€bank€orÏBlink's€Security.Ð (#(# ÐÌà0  àBlink's€may€be€held€liable€for€the€negligence€of€its€agent,€Whitley,€which€resulted€in€theÏinjury€to€Susie€when€Whitley€was€unable€to€execute€his€duty€to€protect€the€bank€and€itsÏcustomers€in€case€of€a€robbery.Ð (#(# ÐÌà0  àThe€rule€for€principal€liability€for€its€agent's€torts€applies€where€a€principal„agent€relationshipÏexists,€the€tort€was€within€the€scope€of€employment,€and€the€agent€was€acting€within€theÏscope€of€his€authority.Ð (#(# ÐÌà0  àHere,€Whitley€was€employed€by€Blink's.€€Although€Whitley€was€assigned€to€the€bank,€thisÏdoes€not€remove€Whitley€from€the€control€of€Blink's.€€Generally€a€principal,€such€as€Blink's,Ïretains€control€over€its€agents€even€when€loaned€to€a€secondary€principal€(bank).Ð (#(# ÐÌà0  àWhitley€was€acting€for€the€benefit€of€Blink's€in€executing€the€services€which€Blink'sÏcontracted€to€provide€to€the€bank,€therefore€further€reinforcing€his€status€as€an€agent€ofÏBlink's€and€not€an€agent€of€Bank€directly.Ðh+¸&*(#(# Їà0  àWhitley's€negligence€was€within€the€scope€of€his€employment€in€that€he€had€the€authority€toÏtake€whatever€precautions€necessary€to€execute€his€duties€as€a€security€guard.Ð (#(# ÐÌà0  àTherefore,€under€the€circumstances,€Susie€should€pursue€a€claim€against€Blink's€which€isÏvicariously€liable€for€the€negligence€of€Whitley€as€its€agent.Ð (#(# ÐÌà0  àAlthough€Susie€could€arguably€pursue€a€claim€against€the€bank,€the€only€fact€helpful€to€herÏwould€be€ratification€by€the€bank's€manager,€Jane,€of€Whitley's€failure€to€carry€a€loaded€gun.€ÏSusie€has€a€higher€likelihood€of€success€against€Blink's.Ð (#(# ÐÌà0  àIt€was€not€reasonable€to€allow€Whitley€not€to€have€a€loaded€gun.€€This€totally€defeats€theÏpurpose€of€having€an€armed€security€guard.€€The€bank,€having€breached€its€duty€by€Jane'sÏconduct,€is€responsible€for€the€resulting€injuries€to€Susie.Ð (#(# Ð`Ìà0  àSusie's€husband€may€bring€a€separate€action€against€each€of€the€defendants€for€loss€ofÏconsortium.Ð (#(# ÐÔ#†X_ÏXXXVKÎÚ#ÔÌò òÔ‡XVKXXX_ÏÔÑ€ƒAÑà@tt%ìàòòQUESTION€IIóóˆÐ `° Ðà@õõìà(20€Points€„€25€Minutes)ó óˆÐ Lœ ÐÌà0  àJoe,€Frank€and€Barney,€friends€since€childhood,€were€drinking€in€a€local€bar€in€CharlesÏCounty,€Maryland.€€They€drank€continuously€from€11:00€A.M.€until€about€7:30€P.M.€whenÏtheir€money€ran€out.€€Joe€asked€the€others€if€they€were€interested€in€making€some€quickÏmoney€by€robbing€the€convenience€store€across€the€street€from€the€bar.Ð (#(# ÐÌà0  àFrank€said€that€he€would€participate€as€long€as€no€one€got€hurt,€and€that€any€money€acquiredÏwould€be€divided€evenly€among€the€three€of€them.€€Barney€said€that€he€was€not€interested,Ïbut€would€stand€outside€the€bar€and€watch€while€they€committed€the€robbery.Ð (#(# ÐÌà0  àJoe€then€asked€Barney€if€he€and€Frank€could€use€Barneyððs€gun€to€frighten€the€store€clerk.€ÏBarney€handed€over€his€gun€but€advised€Joe€that€it€was€not€loaded.Ð (#(# ÐÌà0  àAs€Barney€watched€from€just€outside€of€the€bar,€his€friends€entered€the€store.€€Joe€pointed€theÏgun€at€the€clerk€and€said,€ð ðgive€us€all€of€your€money€or€Iððll€shoot.ðð€€The€store€clerk,€insteadÏof€handling€over€the€money,€pulled€out€a€revolver€and€shot€Joe€dead.€€Frank€then€ran€out€ofÏthe€store€without€taking€any€money,€but€he€grabbed€a€carton€of€cigarettes€on€the€way€out.€ÏBarney€and€Frank€were€arrested€the€next€day.Ð (#(# ÐÌà0  àAfter€their€release€on€bail,€Barney€and€Frank€come€to€you,€a€Maryland€attorney,€for€advice.Ð (#(# ÐÌò ò(1)à0  àAssuming€that€the€above€facts€can€be€proven€and€the€arrest€was€lawful,€with€whatÐ ”)ä$( Ðcrimes€may€each€of€the€defendants€be€charged?€€Provide€the€factual€basis€for€each.Ð (#(# ÐÐ l+¼&* Ð(2)à0  àBased€upon€these€facts,€what€defenses,€if€any,€may€each€of€the€defendants€assert€to€eachÐ ° Ðcharge?Ð (#(# Ðó óÌà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€1ó óˆÐ tÄ ÐÌà0  àIf€he€had€lived,€Joe€could€have€been€charged€with€solicitation€because€he€was€the€originatorÏof€the€scheme€to€rob€the€store€for€more€money.€€He€encouraged€Frank€into€walking€acrossÏthe€street€and€attempting€to€rob€the€convenience€store€when€he€mentioned€"quick€money"€toÏhis€friends€after€theirs€ran€out.Ð (#(# ÐÌà0  àJoe,€Frank€and€Barney€could€all€be€charged€with€conspiracy€because€they€all€worked€togetherÏin€order€to€rob€the€convenience€store.€€Joe€had€the€plan€and€acquired€the€weapon€inÏfurtherance€of€the€robbery€and€he€also€used€the€gun€which€he€aimed€at€the€store€clerk.€€FrankÏwent€to€the€store€with€Joe€and€therefore,€participated€directly.€€Barney,€although€he€did€notÏgo€into€the€store,€provided€the€gun€to€Joe€and€Frank€(albeit€unloaded),€and€stood€watch€whileÏJoe€and€Frank€went€to€rob€the€store.Ð (#(# ÐÌà0  àAs€they€were€all€co„conspirators,€the€three€can€also€be€charged€with€attempted€robberyÏbecause€Joe€and€frank€went€into€the€store€in€order€to€permanently€deprive€the€proprietor€ofÏmoney.€€In€so€doing,€Joe€used€a€dangerous€instrumentality,€Barney's€gun,€in€order€to€achieveÏthe€objective€of€stealing€the€money.€€However,€the€crime€was€never€completed€because€theÏclerk€shot€Joe,€so€the€robbery€was€only€attempted.€€Barney€and€Frank€are€each€guilty€of€anyÏforeseeable€results€of€their€union€with€Joe€except€for€Joe's€death€because€Maryland€does€notÏhold€conspirators€guilty€of€the€murder€of€their€co„conspirators€who€are€killed€during€theÏcrime€by€a€non„participant.Ð (#(# ÐÌà0  àThe€same€conspiracy€analysis€applies€to€assault€as€well.€€Joe€used€his/Barney's€gun€to€frightenÏthe€clerk€so€that€the€clerk€would€give€him€the€money€from€the€cash€register.€€Joe€had€no€otherÏway€to€force€the€clerk€to€give€him€the€money€except€by€creating€an€apprehension€of€bodilyÏharm.Ð (#(# ÐÌà0  àJoe€used€Barneyððs€gun€to€commit€the€attempted€robbery€because€he€does€not€have€a€gun€ofÏhis€own.€€The€use€of€this€weapon€in€this€manner€constitutes€the€use€of€a€weapon€in€theÏcommission€of€a€crime€of€violence.Ð (#(# ÐÌà0  àBarney€can€be€charged€as€an€accessory€before€the€fact€because€he€offered€to€stand€guardÏwhile€Joe€and€Frank€entered€the€store€for€the€purpose€of€robbing€it.Ð (#(# ÐÌà0  àFrank€can€be€charged€with€the€common€law€crime€of€petty€larceny€and€the€statutory€crimeÏof€theft€because€after€the€assault€and€shooting,€Frank€took€a€carton€of€cigarettes€with€outÏpaying€for€them€and€with€the€intent€to€permanently€deprive€the€owner€of€them.Ð (#(# ÐÌà0  àThey€will€argue€that€they€are€innocent€of€these€crimes€because€their€voluntary€intoxicationÐ h+¸&* ÐуAÑâ âÑH°ÑÑH°Ñâ âÑ  Ñ(they€drank€for€8€ðð€hours)€prevented€them€from€forming€the€intent€to€commit€these€specificÏintent€crimes.€€Frank€will€argue€lack€of€intent€for€the€charge€of€larceny/theft€because€he€wasÏtoo€drunk€to€form€the€requisite€intent.Ð (#(# ÐÌà0  àAlternately,€Barney€will€argue€that€he€never€consented€to€be€a€part€of€the€robbery€conspiracyÏwhich€he€made€very€clear€when€he€told€Joe€and€Frank€that€he€was€not€interested€in€robbingÏthe€convenience€store.Ð (#(# ÐÌà0  àBarney€will€argue€that,€although€he€gave€Joe€his€gun,€it€was€not€an€inherently€dangerousÏinstrumentality€because€it€was€not€loaded.€€And€he€informed€them€that€it€was€not€loaded.€ÏSince€the€gun€was€not€loaded,€he€couldn't€be€an€accessory.€€Also,€there€was€no€conspiracyÏdue€to€the€lack€of€intent€resulting€from€their€intoxication,€therefore,€he€wasn't€an€accessoryÏbefore€the€fact€to€any€of€the€crimes€charged.Ð (#(# ÐÌà0  àJoe,€if€he€were€alive,€would€argue€that,€because€the€gun€wasn't€loaded,€he€did€not€violate€anyÏhandgun€statutes.Ð (#(# Ðà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€2ó óˆÐ À ÐÌBarney€may€be€charged€with€the€following:ÌÌÝ‚,ÿÝÝ  ÝÝ‚,0ÝÚƒÚ1Ú  Ú.à0  àÝ  ÝConspiracy€to€rob€the€convenience€store.݃,0KÝۀیиp(#(# ÐŒÝ  Ýò òà  àDefenseó 󀄀no€intent€to€form€the€conspiracy.€€He€told€Frank€and€Joe€that€he€was€not€interested.Ð ¤\ Ðò òÌó ó2.à0  àPossession€of€a€concealed€weapon€„€the€gun€that€he€gave€to€Frank€and€Joe.Ѐ8(#(# Ðò òÌØ€Øó óÝ‚,ÿÝÝ  ÝÝ‚,8ÝÚƒÚ3Ú  Ú.à0  àÝ  ÝUse€of€a€handgun€in€the€commission€of€a€crime€of€violence€„€he€gave€the€gun€to€Frank€andÐ X ÐJoe€knowing€they€were€going€to€use€it€to€rob€the€store.݃,8SÝۀیР(#(# ÐŒÝ  Ýò òÌó óÝ‚,ÿÝÝ  ÝÝ‚,–ÝÚƒÚ4Ú  Ú.à0  àÝ  ÝPossession€of€a€deadly€weapon€„€the€gun.݃,–±ÝÛ€ÛŒÐÔ(#(# ÐŒÝ  Ýò òà  àDefenseó 󀄀It€wasn't€loaded.Ð À ÐÌ5.à0  àAccessory€before€the€fact€„€Provided€the€gun€and€stood€outside€the€store€essentially€as€a€€€€Ð äœ Ðlookout.Ð (#(# ÐÌò òà0  àà ° àà  àDefenseó 󀄀He€will€argue€that€he€was€merely€present€and€did€not€aid€or€abet€the€commissionÐ ¨"`" Ðof€the€crime.Ð (#(# ÐÌØ€ØÝ‚,ÿÝÝ  ÝÝ‚,5!ÝÚƒÚ6Ú  Ú.à0  àÝ  ÝIf€it€is€found€that€there€was€a€conspiracy,€Barney€will€also€be€liable€for€all€other€crimes€€€€€€Ð p%("% Ðcommitted€by€Frank€and€Joe€that€were€foreseeable.€€However,€Barney's€defense€to€conspiracy€Ïis€that€he€lacked€the€requisite€specific€intent€to€form€a€conspiracy€because€he€was€intoxicated.݃,5!P!ÝۀیР(#(# ÐŒÝ  ÝÌFrank€may€be€charged€with€the€following:ÌÌ1.à0  àConspiracy€to€rob€the€store€„€when€he€agreed€to€Joe's€solicitation€to€rob€the€store.Ðø*°'+(#(# Ðò òà  àDefenseó 󀄀lacked€the€specific€intent€because€he€was€voluntarily€intoxicated.Ð ä+œ(, ÐÐ Ô,Œ)- ÐØ€ØÝ‚,ÿÝÝ  ÝÝ‚,j$ÝÚƒÚ2Ú  Ú.à0  àÝ  ÝUse€of€a€handgun€in€the€commission€of€a€felony€„€even€though€he€did€not€personally€use€the€Ð H Ðgun,€he€is€liable€for€all€the€acts€of€his€co„conspirators,€even€if€he€is€not€the€principal€in€the€Ïfirst€degree.݃,j$…$ÝۀیР(#(# ÐŒÝ  ÝÌ3.à0  àPossession€of€concealed€weapon.Ðø°(#(# ÐÌØ€ØÝ‚,ÿÝÝ  ÝÝ‚,g&ÝÚƒÚ4Ú  Ú.à0  àÝ  ÝPossession€dangerous€weapon.݃,g&‚&ÝÛ€ÛŒÐЈ(#(# ÐŒÝ  ÝÌ5.à0  àAttempted€robbery€„€When€Joe€and€Frank€entered€the€store€and€Joe€pulled€out€the€gun€sayingÐ ¨ ` Ðgive€me€the€money€or€I'll€shoot.Ð (#(# Ðò òà  àDefenseó 󀄀lacked€specific€intent€because€of€intoxication.Ð € 8  ÐÌØ€ØÝ‚,ÿÝÝ  ÝÝ‚,p(ÝÚƒÚ6Ú  Ú.à0  àÝ  ÝRobbery.݃,p(‹(ÝÛ€ÛŒÐ\ (#(# ÐŒÝ  Ýò òà  àDefenseó 󀄀robbery€was€not€completed.Ð H  ÐÌ7.à0  àAggravated€assault€„€Joe,€co„conspirator,€pulled€a€gun€on€the€clerk€and€threatened€his€life.Ð$Ü (#(# Ðò òà  àDefense€ó ó„€was€not€within€the€scope€of€his€intent€when€he€entered€the€conspiracy.€€He€didn't€Ð È Ѐ€€€€€€€€€à  àwant€anyone€to€be€hurt.Ð ¸ ÐÌ8.à0  àTheft€under€$300.00€„€The€carton€of€cigarettes.ÐØ(#(# Ðò ò€à0  àDefenseó 󀄀no€specific€intent€because€of€intoxication.ÐÄ|(#(# ÐÌà0  àNeither€Barney€nor€Frank€is€liable€for€the€death€of€Joe.€€There€is€no€responsibility€when€aÏ"good€guy"€kills€one€of€the€co„felons€while€in€the€commission€of€a€crime.à x àÐŒD(#(# ÐÔ#†X_ÏXXXVK;#ÔÐ  x0 ÐÑ°HÑÑ°HÑò òÑ€!dOÑà@€€'ìàPART€EˆÐ ° ÐÌÓ  ÓÝ‚ÿÿÿÝÔ& ð ÔÓ  ÓÔ  ÔÔ  ÔòŒòÝ  ÝóŒóÝ‚ÿÿÿ-e€acÝó óÔ  ÔÔ  ÔÔ'ð!-ÔÓ  ÓÝ  Ýòòò òQUESTION€Ió óóóÐ à Ðò ò(20€Points€„€30€Minutes)ó óÐ €Ð ÐÓ  ÓÌà0  àSally,€a€printing€equipment€dealer,€sold€a€used€printing€press€to€Paul€in€Maryland.€She€toldÏhim€the€printing€plates€had€been€damaged€and€repairs€had€been€made.€She€gave€Paul€theÏrepair€records€to€review.Ð (#(# ÐÌà0  àThe€prior€damage€and€details€of€the€repairs€were€clearly€noted€in€the€repair€records.€TheÏrepair€records€also€stated€that€the€press€had€been€inspected€on€June€1,€1999€by€anÏindependent€inspector,€and€was€"in€first„class€operating€condition."€Before€Paul€purchasedÏthe€press,€he€signed€a€bill€of€sale€to€the€effect€that€"after€inspection€of€the€printing€press€andÏrepair€record,€purchaser€agrees€to€accept€the€press€on€an€"as€is,€where€is"€basis€for€$60,000."Ð (#(# ÐÌà0  àPaul€shipped€the€printing€press€from€Sally's€warehouse€in€Baltimore€to€his€printing€businessÏin€Charles€County,€Maryland.€Immediately€thereafter,€the€press€was€found€to€have€latentÏmechanical€defects€and€it€was€incapable€of€operation€without€extensive€repairs€costingÏ$50,000.€€The€defects€existed€when€Sally€sold€the€press€to€Paul.€€Paul€also€received€noticeÏfrom€Maryland€Bank€that€it€had€a€security€interest€in€the€press€for€$5,000€and€that€prior€toÏthe€sale,€a€legally€sufficient€security€interest€and€financing€statement,€signed€by€Sally,€listingÏthe€press€as€collateral€had€been€recorded€by€the€Bank€in€the€records€of€the€Maryland€StateÏDepartment€of€Assessments€and€Taxation€on€January€2,€1999.Ð (#(# ÐÌà0  àPaul€seeks€advice€from€you,€a€Maryland€attorney.€€Draft€a€short€memo,€dealing€with€theÏfollowing€issues:Ð (#(# ÐÌò ò(1)à0  àDescribe€the€rights€and€remedies€Paul€can€assert€against€Sally€under€the€U.C.C.€basedÐ P Ðon€the€facts€stated?ó óÐð@(#(# Ðà  àÌò ò(2)à0  àAnalyze€the€likelihood€that€Paul€will€prevail€in€his€claims.ÐÐ (#(# ÐÌ(3)à0  àDiscuss€whether€Paul€has€any€valid€defense€against€potential€claims€by€Maryland€BankÐ °"  Ðagainst€the€printing€press.Ð (#(# Ðà  àÌ(4)à0  àAssume€that€Sally€was€a€printing€shop€owner€at€the€time€she€sold€the€press€to€Paul.Ѐ%Ð #(#(# Ðà0  àà ° àà  àDiscuss€whether€this€fact€(1)€has€any€bearing€on€Sally's€legal€obligations€in€the€sale€ofÏthe€printing€press€and€(2)€has€any€bearing€on€Paul's€defenses€to€claims€of€MarylandÏBank.Ð (#(# ÐÓ  ÓÑ€ORÑÌÌÌÐ ,`'* ÐÑ!dOÑâ !âÑ°°ÑÑ°°Ñâ !âÑ  ÑÌÌREPRESENTATIVE€ANSWER€NO.€1ÌÓ  Óó óÌTOà  à€€€€PaulÐ pÀ ÐFROM€€€€AttorneyÌDATE€€€€€July€29,€1999ÌREà  à€€€€Possible€claimsÐ @  ÐÌI€have€researched€the€issues€as€requested.€€Please€feel€free€to€call€me€with€any€additional€questionsÏor€concerns.ÌÌ1.à0  àò òRights€and€Remedies€against€Sally.òòó óÐð@ (#(# ÐóóÌà0  àPaul€may€assert€a€claim€for€breach€of€warranty€against€Sally.€€First,€we€can€argue€thatÏSally("S")€gave€you,€Paul€("P"),€an€express€warranty€that€the€press€would€be€in€operatingÏcondition€when€she€stated€that€the€press€was€in€"first„class€operating€condition."€€The€pressÏclearly€was€not.Ð (#(# ÐÌà0  àSecond,€P€may€argue€that€S,€as€a€merchant,€provided€an€implied€warranty€of€merchantabilityÐ €Ð Ðð!ð€that€the€press€would€be€fit€for€its€ordinary€purpose.€€Here,€the€press€clearly€was€not€fit€forÐ pÀ Ðthe€ordinary€purpose.Ð (#(# ÐÌà0  àThere€is€no€basis€upon€which€to€suggest€that€S€breached€a€warranty€for€fitness€for€particularÏuse€because€there€are€no€facts€to€suggest€that€P€was€buying€the€press€for€a€particular€use€orÏthat€S€knew€of€it.Ð (#(# ÐÌØ€ØÝ‚,ÿÝÝ  ÝÝ‚,J=ÝÚƒÚ2Ú  Ú.à0  àÝ  Ýò òLikelihood€of€Successó ó.݃,J=e=ÝÛ€ÛŒÐP(#(# ÐŒÝ  ÝÌà0  àIt€is€likely€that€P€will€prevail€on€the€breach€of€express€warranty€because€express€warrantiesÏmay€not€be€disclaimed€and€because€the€defect€could€not€have€been€discovered€in€the€initialÏexamination€before€signing€the€contract.Ð (#(# Ðà0  àÐ (#(# Ðà0  àHowever,€there€is€not€likely€to€be€a€successful€breach€of€implied€warranty€of€merchantabilityÏclaim€because€S€included€the€term€"as€is"€in€the€agreement.€€This€disclaims€the€impliedÏwarranty€of€merchantability.Ð (#(# Ðà0  àÐ (#(# Ðà0  àOn€the€success€of€the€express€warranty€breach,€P€will€be€entitled€to€recover€expectationÏdamages,€incidental€damages€and€foreseeable€consequential€damages.€Ð (#(# Ðà0  àà ` àÐ (#(# Ð3.à  àò òClaims€against€Bank.€ó óÐ 0*€%( ÐÌà0  àBank€had€an€enforceable,€perfected€security€interest€in€the€printing€press.€€However,€as€aÐ ,`'* ÐÑORÑâ âÑ8°Ñâ âÑ  Ñbuyer€in€the€ordinary€course€of€S's€business,€P€took€clear€of€Bank's€interest€in€the€pressÏbecause€P's€priority€rights€were€greater€under€ðð9„307(1)(a).Ð (#(# Ðà  àÌ4.€€€€€€€€€Assuming€S€were€a€printing€shop€owner€and€not€in€the€regular€course€of€selling€presses,Ìà0  àthe€Bank€would€have€the€priority€in€the€security€interest€because€P€would€not€have€been€aÏbuyer€in€the€ordinary€course€of€S's€business€and€filed€before€P€took€possession€of€the€press.Ð (#(# Ðà0  àAlso,€the€fact€that€S€was€a€printing€shop€owner€would€not€change€the€nature€of€the€caseÏagainst€S,€except€the€rule€of€law€would€be€different.€€She€would€not€be€considered€a€merchantÏand€would€not€have€the€warranty€of€merchantability€implied€in€her€contract€with€P.€ÏHowever,€even€with€the€warranty,€P€loses€on€this€issue.€à È à€€€€€€Ð p (#(# ÐÓ  Óò òÌREPRESENTATIVE€ANSWER€NO.€2ó óÐ P  ÐÓ  ÓÌØ€ØÝ‚,ÿÝÝ  ÝÝ‚,4FÝÚƒÚ1Ú  Ú.à0  àÝ  ÝPaul€may€assert€three€claims€against€Sally€under€the€UCC:݃,4FOFÝÛ€ÛŒÐà0 (#(# ÐŒÝ  ÝÌò òà0  àà ° à(a)ó ó€€€€€òòò òBreach€of€express€warrantyó óóó€because€the€records€stated€that€the€press€was€in€first„classÐ À Ðoperating€condition.Ð (#(# ÐÌò ò(b)ó óà0  àòòò òBreach€of€implied€warranty€of€merchantabilityó óóó€which€is€implied€in€every€sale€of€Ðà(#(# Ðà  àgoods€under€the€UCC.ÌÌò ò(c)ó óà0  àòòò òBreach€of€implied€warranty€of€fitnessó óóó,€which€may€be€implied€in€the€sale€of€goods€Ð`°(#(# Ðà0  àà ° àà  àselected€by€seller€to€meet€a€purpose€stated€by€buyer€knowing€that€buyer€relied€on€seller'sÏadvice/selection.Ð (#(# ÐÌÝ‚,ÿÝÝ  ÝÝ‚,ÞIÝÚƒÚ2Ú  Ú.à0  àÝ  ÝPaul€may€succeed€on€his€claim€for€breach€of€express€warranty€because€an€express€warranty€Ýƒ,ÞIùIÝۀیРp(#(# ÐŒÝ  Ýà0  àcannot€effectively€be€waived€ð!ð€any€language€indicating€such€a€waiver€is€inconsistent€with€theÐ ` Ðexpress€warranty€is€in€favor€of€the€warranty.€€Sally€may€argue€that€the€only€warranty€was€onÏthe€repair€records,€not€on€the€bill€of€sale€which€attempts€to€limit€the€warranty,€but€she€usedÏthe€records€to€induce€the€sale€and€this€argument€will€not€wash.Ð (#(# ÐÌà0  àPaul€will€probably€not€succeed€on€his€breach€of€implied€warranty€of€merchantability€becauseÏthe€"as€is"€language€should€be€sufficient€under€ðð2„316(3)(a)€ð!ð€unless€the€printing€press€isÐ °"  Ðconstrued€to€be€consumer€goods€in€which€case€the€warranty€may€not€be€waived.Ð (#(# ÐÌà0  àHis€claim€of€implied€warranty€of€fitness€will€not€succeed€because€he€did€not€rely€on€sellerÏto€select€the€goods.€Ð (#(# ÐÌÝ‚,ÿÝÝ  ÝÝ‚,]NÝÚƒÚ3Ú  Ú.à0  àÝ  ÝThe€Maryland€Bank's€security€interest€appears€to€be€correctly€perfected,€but€this€does€not€Ýƒ,]NxNÝÛ€ÛŒÐP( #&(#(# ÐŒÝ  Ýà0  àgive€its€claim€priority€over€Paul's.€€A€purchase€in€inventory€by€a€buyer€in€the€ordinary€courseÏof€business€has€priority€over€a€perfected€security€interest€in€that€inventory.€€Paul€is€a€buyerÏin€the€ordinary€course€of€business,€because€he€purchased€in€good€faith€from€a€person€in€theÏbusiness€of€selling€printing€presses.Ð,`'*(#(# ЇÝ‚,ÿÝÝ  ÝÝ‚,àPÝÚƒÚ4Ú  Ú.à0  àÝ  ÝIf€Sally€was€a€printing€shop€owner,€she€might€not€qualify€as€a€merchant€for€the€purposes€of€Ýƒ,àPûPÝۀیа(#(# ÐŒÝ  Ýà0  àà ° àà  àthe€warranty€provisions€of€the€UCC,€because€she€might€not€be€a€dealer€in€printing€presses,Ïor€a€person€who€holds€himself€out€to€have€knowledge,€unless€she€regularly€resold€herÏpresses.Ð (#(# ÐÌà0  àSuch€a€change€in€Sally's€status€would€also€negate€Paul's€defense€against€Maryland€Bank,Ð (#(# Ðà0  àbecause€the€press€would€be€considered€equipment,€not€inventory,€and€would€not€be€subjectÏto€the€special€protections€of€ðð9„307.Ð (#(# ÐÌà  àò òà@tt%ìàÔ  ÔòòQUESTION€IIóóÔ +TԈР p  Ðó óà@ôôìàò ò(10€Points€„€15€Minutes)ó óˆÐ `  ÐÌà0  àEric€("The€Arm")€Scott,€signed€a€written€contract€to€pitch€for€the€major€league€BaltimoreÏSuns'€baseball€team€for€the€1999€season.€The€Suns€guaranteed€Scott€a€place€on€the€team€asÏa€pitcher€and€agreed€to€pay€him€$6€million,€payable€in€12€monthly€installments,€of€$500,000Ïeach,€beginning€March€1,€1999.Ð (#(# ÐÌà0  àWhen€the€season€started,€Scott's€pitching€was€totally€ineffective.€€By€May€31,€1999,€he€hadÏlost€all€eight€games€he€started.€€After€three€monthly€payments,€the€Suns'€managementÏdecided€to€replace€Scott.€The€Suns'€management€notified€Scott€by€letter€of€its€decision€toÏterminate€Scott's€pitching€services,€effective€June€1,€1999,€and€that€"the€team€will€not€complyÏwith€the€obligations"€to€you€under€the€written€contract.Ð (#(# ÐÌà0  àBy€the€same€letter,€and€with€the€proposed€purpose€"to€avoid€any€damage€to€you,"€the€SunsÏinstead€offered€to€employ€Scott,€in€lieu€of€pitching,€as€a€"roving€instructor€and€good€willÏambassador"€for€the€balance€of€the€1999€season€at€the€same€$500,000€per€month€salaryÏ($4,500,000€for€the€balance€of€the€year).€€The€proposed€employment€would€require€Scott€toÏwork€with€young€pitchers€on€the€Suns'€minor€league€teams€and€make€personal€appearancesÏat€banquets.Ð (#(# ÐÌà0  àThe€next€day,€Scott€received€a€written€proposal€from€another€major€league€baseball€club,€theÏChicago€Cubs,€offering€him€an€immediate€spot€on€the€Cubs'€pitching€roster€at€a€guaranteedÏsalary€of€$900,000€($100,000€per€month)€until€March€1,€2000.Ð (#(# Ðà  àÌà0  àScott€comes€to€you,€a€Maryland€attorney,€for€legal€advice.€€Scott€tells€you€that€he€wouldÏprefer€not€to€accept€either€offer,€and€that€he€wants€to€accept€a€$45,000€($5,000€per€month)Ïoffer€as€head€coach€of€the€baseball€team€at€his€former€high€school,€beginning€immediately.Ð (#(# ÐÌò òIf€Scott€accepts€the€offer€of€employment€as€high€school€head€baseball€coach,€how€muchÐ P( #& Ðdamages,€if€any,€can€he€recover€from€the€Baltimore€Suns€for€the€period€June€1,€1999€throughÏMarch€1,€2000?€€Explain€fully€the€legal€and€factual€bases€for€your€answer.Ìó óÌà@ìàò òRepresentative€Answer€No.€1ó óˆÐ ,`'* Їà0  àScott€may€recover€the€amount€of€money€that€he€would€have€made€pitching€for€the€Suns,€lessÏthe€amount€of€money€he€will€earn€coaching.€€He€will€also€be€entitled€to€incidental€damages.Ð (#(# ÐÌà0  àIn€all€breach€of€contract€cases,€the€non„breaching€party€has€a€duty€to€mitigate€damages.€€ThatÏmeans€that€the€non„breaching€party,€in€an€employment€case€must€secure€comparableÏemployment€if€he€has€the€chance.Ð (#(# ÐÌà0  àIn€this€case,€the€Suns'€offer€was€clearly€not€comparable€employment.€€He€was€hired€to€pitchÏand€had€no€duty€to€accept€a€job€that€required€him€to€coach€and€make€public€appearances.€ÏThus,€he€had€no€duty€to€accept€this€job.Ð (#(# ÐÌà0  àThe€other€job€presents€a€much€more€complex€question€as€to€whether€it€was€comparable.€€OnÏone€hand,€it€was€performing€the€exact€same€type€of€work€as€he€would€have€been€doing,€butÏon€the€other€hand,€the€compensation€was€dramatically€lower,€it€was€in€a€completely€differentÏcity,€in€a€completely€different€part€of€the€country€and€with€a€completely€different€team.€€ItÏis€for€these€reasons€that€I€would€conclude€that€the€job€was€not€comparable€employment€andÏScott€had€no€duty€to€take€it.€Ð (#(# ÐÌà0  àAlthough€Scott€did€not€take€a€comparable€job€in€coaching€his€high€school€team,€theÏcompensation€he€receives€from€that€job€must€be€subtracted€from€his€damages€recovered.€€IfÏthis€did€not€occur,€he€would€be€unjustly€enriched€by€receiving€more€money€than€he€wouldÏhave€ð!ð€the€contract€would€have€been€performed.€€Therefore,€he€can€recover€$455,500€whichÐ `° Ðis€($4,500,000€minus€$45,000).€€He€also€may€get€incidental€damages.€Ð (#(# Ðò òÌÝ‚ÿÿÿÝÔ& à ÔÓ  ÓÔ  ÔÔ  ÔòŒòÝ  ÝÔ  ÔREPRESENTATIVE€ANSWER€NO.€2Ô }dÔóŒóó óÐ 0€ ÐÝ‚ÿ/dmpliÝÔ  ÔÔ  ÔÔ'à0?dÔÓ  ÓÝ  ÝÌà0  àScott's€contract€with€the€Suns€is€a€personal€service€employment€contract.€Ð (#(# ÐÌà0  àIf€Scott€decides€to€take€the€job€with€the€high€school€team,€he€could€likely€not€recover€anyÏdamages€from€the€Suns€because€they€attempted€to€honor€the€contract€with€him€by€paying€himÏthe€same€salary€to€work€in€another€position.€€Thus,€he€would€not€have€been€harmedÏeconomically.€€Essentially,€the€Suns€are€offering€Scott€avoidance€damages€and€a€new€offerÏof€employment.€€However,€Scott€could€argue€that€he€contracted€to€work€with€the€Suns€as€aÏpitcher,€and€by€not€honoring€that€agreement,€the€Suns€are€in€breach.€€In€this€instance,€ScottÏcould€argue€that€the€Suns€should€pay€him€$5.1€million,€the€difference€between€his€contractÏamount€with€the€Suns€and€the€contract€offered€to€him€by€the€Cubs.€€If€Sam€were€to€claim€thatÏhe€should€be€compensated€for€his€loss€of€employment€as€a€Suns'€pitcher,€then€paying€him€theÏ$5.1€million€would€place€him€in€the€same€position€he€would€have€been€in€economically€asÏa€Suns'€pitcher€even€though€he€would€be€pitching€for€another€team.€€However,€Sam€could€notÏclaim€this€if€he€were€to€coach€for€the€high€school.€€He€is€obligated€to€account€for€avoidableÏdamages,€which€he€could€do€by€finding€a€comparable€job€with€comparable€pay€or€slightlyÏless€pay,€as€is€the€case€with€the€Cubs'€pitching€job.€ò òÐ +p&)(#(# Ðó óÐ  ,`'* ÐÑ°8Ñò òÔ‡XVKXXX_ÏÔÑ€"OaÑÑ€#OaÑà@ˆˆ'ìàPART€Fà@@ìì*ìàó óˆÐ ° ÐÌà@››%ìàà@@››%ìàò òòòQUESTION€Ióóó óˆÐ ˆØ Ðà@‘‘ìàò ò(20€Points€„€25€Minutes)ó ó€€€€ˆÐ tÄ ÐÌà0  àThe€constitution€of€the€state€of€Westover€provides€that€its€courts€may€exercise€jurisdictionÏover€all€ð ðpersons€and€causes€of€action€to€the€extent€permitted€by€the€Constitution€of€theÏUnited€States€of€America.ðð€€The€Westover€Courts€and€Judicial€Proceedings€Article€provides,Ïin€pertinent€part:Ð (#(# ÐÌò òà0  àService€of€Process€€„€€Small€Claims.ó ó€€In€addition€to€other€methods€prescribed€by€law,Ð ì <  Ðprocess€may€be€served€in€a€civil€action€for€less€than€$2,500€by€mailing€the€summons,€togetherÏwith€an€exact€photocopy€of€the€complaint€and€all€pleadings€or€papers€filed€therewith,€to€eachÏdefendant€at€his€or€her€last€known€address.€€Such€mailing€may€be€by€first€class€United€StatesÏmail,€postage€prepaid.€€The€plaintiff€shall€file€a€certificate€with€the€court€of€such€filing€andÏservice€shall€be€effective€as€of€seven€calendar€days€after€the€date€of€mailing.Ð (#(# ÐÌà0  àAppliance€Shack,€Inc.€is€a€retail€chain€with€several€stores€in€Maryland.€€In€1998,€it€relocatedÏits€corporate€headquarters€from€Maryland€to€Westover.€€In€June€of€that€year,€it€filed€a€civilÏaction€in€small€claims€court€in€Westover€against€John€Smith,€a€retired€teacher€who€residesÏin€Carroll€County,€Maryland€on€Smithððs€overdue€account€for€merchandise€purchased€at€itsÏCarroll€County€store.€€Service€of€process€was€accomplished€by€first€class€mail€in€accordanceÏwith€the€above„quoted€rule;€Smith€did€not€answer€and€a€judgment€was€entered€against€himÏby€default€in€the€amount€of€$1,500.€€In€compliance€with€applicable€law,€Appliance€Shack€hasÏnow€filed€an€action€to€enroll€the€judgment€against€Smith€in€the€court€records€of€CarrollÏCounty.€€Ð (#(# ÐÌà0  àSmith€claims€that€he€never€received€notice€of€the€action€filed€by€Appliance€Shack€inÏWestover€and€does€not€owe€the€money.€€He€also€says€that€he€has€never€been€to€Westover€inÏhis€life.€€He€has€retained€you,€an€attorney€practicing€in€Maryland,€to€prevent€the€judgmentÏfrom€being€enrolled€in€the€court€records€for€Carroll€County.ò òÐ` °(#(# Ðà  àÌWhat€arguments€would€you€advance€on€Smithððs€behalf?€€How€is€the€court€likely€to€rule?€ÏExplain€your€answer€thoroughly.ÌÌó óà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€1ó óˆÐ ü$L # ÐÌà0  àThe€Constitution€places€a€limit€on€personal€jurisdiction€so€that€it€does€not€impede€substantialÏjustice€and€notices€of€fair€play.€€This€presents€a€two€part€test€1)€reasonableness€2)€Notice€ofÏthe€Contact.€€Westover€would€acquire€personal€jurisdiction€over€Smith€if€this€suit€meets€thatÏtest.€€Beginning€with€the€notice€of€the€contact,€Smith€has€never€been€to€Westover,€theÏtransaction€was€made€in€Maryland,€the€Appliance€Shack€was€headquartered€in€Maryland€untilÏaround€the€time€of€the€suit€(it€is€unclear€where€they€were€located€at€the€origin€of€the€leaseÐ p+À&* Ðaction).€€This€is€almost€no€contact€with€Westover,€except€indirectly.€€Ð (#(# ÐÌÌà0  àSecond,€the€reasonableness€of€€Westover€claiming€jurisdiction.€€It€is€unclear€how€closeÏWestover€is€to€Maryland€but€that€could€influence€the€determination,€also€the€claim€arose€inÏMaryland€so€Maryland€law€would€apply,€giving€Westover€little€interest€in€the€proceeding.€ÏÐ (#(# ÐÌà0  àLastly,€the€travel€combined€with€the€little€amount€in€question€makes€it€fairly€unreasonableÏfor€Westover€to€claim€jurisdiction€under€the€Constitutional€standard.€€A€court€would€likelyÏrule€that€Westover€does€not€have€personal€jurisdiction€over€Smith.Ð (#(# ÐÌà0  àAdditionally,€I€would€argue€improper€service€of€process.€€In€Maryland,€service€must€be€inÏperson€or€by€certified€mail.€€They€do€allow€service€outside€the€jurisdiction€based€on€the€lawsÏof€another€jurisdiction€if€they€are€reasonably€calculated€to€give€actual€notice.€€While€in€thisÏcase€Smith€is€inside€MD€the€service€by€standard€mail€[will]€likely€be€insufficient€and€wouldÏmost€likely€have€to€be€done€in€accordance€with€Maryland€law.Ð (#(# ÐÌà0  àWhile€the€full€faith€and€credit€calls€for€Maryland€to€respect€the€decisions€of€other€stateÏCourts,€this€only€applies€to€Courts€with€proper€jurisdiction€and€properly€adjudicated.€€TheÏMaryland€Court€would€likely€rule€in€favor€of€Smith€and€find€no€personal€jurisdiction€inÏWestover€and€insufficient€process€in€Maryland.Ð (#(# ÐÌà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€2ó óˆà0  àÐä4 (# (# ÐÌà0  àI€would€argue€that€the€judgment€must€not€be€enrolled€here€because€it€was€reached€in€violationÏof€the€Federal€Constitutionððs€Due€Process€requirements.€€The€Constitution€requires€that€inÏorder€to€exercise€personal€jurisdiction€over€a€defendant€without€his€consent,€a€two€part€testÏmust€be€satisfied.€€The€first€part€of€the€test€deals€with€the€nature€of€the€defendantððs€contactsÏwith€the€forum€state.€€In€this€case,€S.€has€never€been€to€Westover.€€He€does€not€reside€there,Ïwork€there,€or€do€business€with€Westover€residents.€€Therefore,€S.€has€NO€contacts€with€theÏstate€of€Westover.€€Furthermore,€he€has€never€ð ðpurposefully€availedðð€himself€of€WestoverÏor€its€laws.€€Therefore,€S.€does€not€have€sufficient€contacts€with€Westover€to€satisfy€theÏConstitutional€due€process€requirements.Ð (#(# ÐÌà0  àThe€second€prong€of€the€test€for€whether€Westover€may€exercise€jurisdiction€is€whetherÏdoing€so€would€be€ð ðreasonable.ðð€€This€involves€a€balancing€test€in€which€the€stateððs€interestÏin€the€transaction€and€the€burden€of€the€defendant€are€weighed.€€Here,€the€state€has€almostÏno€interest€in€the€transaction€alleged.€€This€is€because€the€transaction€occurred€in€MarylandÏand€Maryland€law€(NOT€WESTOVER€LAW)€should€apply,€so€the€forum€state€has€noÏinterest.Ð (#(# ÐÌà0  àIn€contrast,€the€burden€on€S.€of€defending€this€claim€in€the€forum€state€is€high.€€He€has€neverÐ h+¸&* ÐÑ#Oa!Ñâ #âÑ°°Ñâ #âÑ  Ñeven€been€there.€€Therefore,€Westover€may€not€exercise€personal€jurisdiction.€€In€addition,Ïthe€statute€allowing€service€on€S.€does€not€ensure€in€any€way€that€the€Constitutional€standardsÏare€met.€€Therefore,€service€and€process€were€insufficient€because€they€were€achieved€underÏan€unconstitutional€statute.Ð (#(# Ðñ[ñÌÌñ[ñà0  àAppliance€shack€will€argue€that€the€full€faith€and€credit€clause€and€the€constitutionððsÏrequirements€of€comity€between€the€states€requires€MD€to€recognize€the€Westover€judgment.€ÏThis€agreement€will€fail.€€These€principles€do€not€require€MD€to€recognize€a€judgment€asÏconstitutionally€infirm€as€the€one€against€Mr.€Smith.Ð (#(# ÐÌà@tt%ìàò òòòQUESTION€IIóóˆÐ ü L  Ðà@‘‘ìà(15€Points€„€20€Minutes)€€€€ˆÌó óÌà0  àAlvin€Adams€was€arrested€and€charged€with€possession€of€CDS€(controlled€dangerousÏsubstance).€€The€arrest€occurred€during€a€police€raid€of€Adamsðð€apartment.€€Adams€lives€inÏpublic€housing,€and€possession€of€drugs€is€a€breach€of€his€lease.€€The€public€housingÏauthority€has€filed€an€action€to€evict€Adams€based€upon€these€facts.€€The€trial€for€the€evictionÏbased€on€the€breach€of€lease€is€scheduled€one€month€before€the€criminal€trial€for€theÏpossession€of€CDS.€€Mr.€Adams€has€retained€you,€an€attorney€practicing€in€Maryland,€toÏrepresent€him€in€both€the€civil€and€the€criminal€trials.Ð (#(# ÐÌò òExplain€to€what€extent€the€Fifth€Amendment€applies€to€the€civil€proceeding€for€the€breach€ofÐ  p Ðlease.€€If€Adams€waives€his€Fifth€Amendment€rights€in€the€civil€trial,€what€rights,€if€any,€doesÏhe€preserve€against€self„incrimination?€€What€effect,€if€any,€would€his€refusal€to€waive€his€FifthÏAmendment€rights€have€upon€the€outcome€of€the€civil€action?€€Explain€your€answerÏthoroughly.ó óÐ Ð  ÐÌà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€1ó óˆÐ ¨ø ÐÌà0  àAlvinððs€constitutional€right€to€invoke€the€5òòthóó€amendment€(prevents€an€individual€from€beingÐ €Ð Ðcompelled€to€testify€against€himself)€òòappliesóó€to€the€civil€proceeding€for€the€breach€of€lease.€Ð l¼ ÐThis€is€because€it€is€possible€for€Alvin€to€incriminate€himself€by€testifying€as€to€whether€orÏnot€he€had€possession€of€CDS.€Therefore,€ñZñhiñZñs€5òòthóó€Amendment€right€applies€to€this€civilÐ D!” Ðproceeding.Ð (#(# ÐÌà0  àIf€Alvin,€however,€waives€his€5òòthóó€Amendment€rights€and€decides€to€testify,€he€will€haveÐ $X" ÐWAIVED€his€5òòthóó€Amendment€right€for€his€criminal€trial€for€possession€of€CDS.€€At€hisÐ ô$D # Ðcriminal€trial,€Alvin€will€be€forced€to€testify€on€this€issue€and€all€the€incriminating€factsÏsurrounding€the€arrest€and€possession.€€By€waiving€his€civil€trial,€he€preserves€NO€rightsÏagainst€self„incrimination.Ð (#(# ÐÌà0  àAlvinððs€refusal€to€waive€his€5òòthóó€Amendment€rights€may€have€an€adverse€impact€on€theÐ )à$( Ðoutcome€of€the€civil€action.€€The€opposing€party€may€be€able€to€comment€on€Alvinððs€refusalÏto€testify€and€jury€instructions€unless€evidence€rules€keep€comments€out€„€may€not€be€ableÐ h+¸&* ÐÑ"Oa"Ñâ "âÑ°°Ñâ "âÑ  Ñto€make€adverse€comments€if€too€prejudicial.Ð (#(# Ðñ^ñÌñ^ññ]ñà@t t ìàò òREPRESENTATIVE€ANSWER€NO.€2ˆÐ ˆØ Ðó óÔ#†X_ÏXXXVK¼j#ÔÔ‡XVKXXX_ÏÔñ]ñÌà0  àThe€5òòthóó€Amendment€of€the€U.S.€Constitution€guarantees€a€criminal€defendant€the€right€to€beÐ `° Ðfree€from€òòcompelledóó€self„incrimination.€€This€right€may€be€waived€and€only€applies€whereÐ L œ Ðthe€self„incrimination€is€compelled€by€the€state.€€As€a€practical€matter,€procedural€techniquesÏcould€likely€be€used€to€ensure€that€the€criminal€trial€occurred€before€the€civil€one.€€ThisÏwould€alleviate€the€problem€here.€€However,€if€this€was€not€possible,€Adams€could€assert€hisÏ5òòthóó€Amendment€privilege€ñ_ñÐb²(#(# ÐÌà0h(#(#àñ_ñin€the€civil€action.€€If€he€did€so,€the€fact€finder€would€be€free€toÐ ü L  Ðdraw€negative€inferences€from€his€assertion€of€the€privilege.€€In€other€words,€asserting€theÏprivilege€ñ`ñasserting€the€privilege€ñ`ñwould€allow€the€òòcivilóó€fact€finder€to€presume€that€Adams€possessed€CDS.€Ð Ô$  ÐObviously,€by€asserting€his€privilege€against€self€incrimination€in€the€civil€trial,€he€wouldÏpreserve€it€for€the€criminal€trial.Ð (#(# ÐÌà0  àIf€Adams€waives€his€5òòthóó€Amendment€right€in€the€civil€trial,€he€will€lose€it€in€the€criminal€trial.€Ð „Ô  ÐThere€is€an€argument€that€because€the€state€is€brinñañgñañing€the€eviction€action,€the€state€isÏcompelling€Adams€to€testify€in€that€action.€€The€problem€with€this€argument€is€that€AdamsÏis€free€to€assert€his€5òòthóó€Amendment€privilege€in€the€civil€trial.€€Therefore,€he€is€not€beingÐ H˜ Ðð ðcompelledðð€to€testify€even€though€asserting€his€privilege€comes€at€a€cost.Ð (#(# ÐÌñ\ñà@s s ìàñ\ññbñò òñbññ\ñREPRESENTATIVE€ANSWER€NO.€2ˆÐ *z  Ðñ\ññbñó óÌà0  àThe€5òòthóó€Amendment€of€the€U.S.€Constitution€guarantees€a€criminal€defendant€the€right€to€beÐ ` Ðfree€from€òòcompelledóó€self„incrimination.€€This€right€may€be€waived€and€only€applies€whereÐ öF Ðthe€self„incrimination€is€compelled€by€the€state.€€As€a€practical€matter,€procedural€techniquesÏcould€likely€be€used€to€ensure€that€the€criminal€trial€occurred€before€the€civil€one.€€ThisÏwould€alleviate€the€problem€here.€€However,€if€this€was€not€possible,€Adams€could€assert€hisÏ5òòthóó€Amendment€privilege€in€the€civil€action.€€If€he€did€so,€the€fact€finder€would€be€free€toÐ ŽÞ Ðdraw€negative€inferences€from€his€assertion€of€the€privilege.€€In€other€words,€asserting€theÏprivilege€asserting€the€privilege€would€allow€the€òòcivilóó€fact€finder€to€presume€that€AdamsÐ Zª Ðpossessed€CDS.€€Obviously,€by€asserting€his€privilege€against€self€incrimination€in€the€civilÏtrial,€he€would€preserve€it€for€the€criminal€trial.Ð (#(# ÐÌà0  àIf€Adams€waives€his€5òòthóó€Amendment€right€in€the€civil€trial,€he€will€lose€it€in€the€criminal€trial.€Ð òB ÐThere€is€an€argument€that€because€the€state€is€brining€the€eviction€action,€the€state€isÏcompelling€Adams€to€testify€in€that€action.€€The€problem€with€this€argument€is€that€AdamsÏis€free€to€assert€his€5òòthóó€Amendment€privilege€in€the€civil€trial.€€Therefore,€he€is€not€beingÐ ¤ô Ðð ðcompelledðð€to€testify€even€though€asserting€his€privilege€comes€at€a€cost.ñbñÔ#†X_ÏXXXVK‘#Ô