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ÐREPRESENTATIVE€GOOD€ANSWERSÌÌQUESTION€1ÌÌÓ  Ó€€€€€ó óAlan€and€Brittany€are€planning€to€open€a€pizza€shop€in€Baltimore€City.€€Alan€will€investÐ L œ Ð$60,000,€to€be€secured€by€a€lien€on€the€assets€of€the€business.€€Brittany€will€make€no€cashÏcontributions,€but€will€operate€the€business€on€a€day„to„day€basis.€€They€want€to€make€sure€thatÏAlan€will€not€be€required€to€increase€his€investment€or€have€any€liability€to€business€creditors.€ÏBrittany€has€also€agreed€that€Alan€will€have€a€veto€power€over€certain€decisions€she€makes€inÏorder€to€protect€his€investment.€€The€ð ðbasic€decisionsðð€requiring€Alanððs€approval€includeÏpurchasing€anything€that€costs€more€than€$2,500,€borrowing€money,€and€hiring€employees.€ÏProfits€and€losses€are€to€be€allocated€equally,€after€Brittany€is€paid€a€salary€of€$500€per€week.€ÏAlanððs€investments€is€to€bear€10%€annual€interest,€and€be€repaid€over€5€years€in€equal€monthlyÏinstallments.ÌÌ€€€€€Alan€and€Brittany€consult€you,€a€Maryland€attorney,€for€advice€on€forming€a€business€entity,Ïunder€Maryland€law,€and€preparing€legal€documents€to€accomplish€their€objectives.ò òÐ `° ÐÌ€€€€€Consider€a€limited€liability€company€and€a€general€partnership.ÌÌ€€€€€1.€€Write€a€brief€memorandum,€explaining€which€of€these€entities€you€believe€will€betterÏenable€Alan€and€Brittany€to€implement€their€objectives.€€Explain€your€reasons.ÌÌ€€€€€2.€€Identify€the€documents€which€will€need€to€be€prepared€to€accomplish€their€objectives.€ÏState€the€purpose€of€each€document.ÌÌÌÓ  ÓREPRESENTATIVE€ANSWER€1ÌÌó óÓ  ÓÓ  Ó€€€€€1.€€Without€the€aid€of€a€€lawyer€ð!ð€or€more€possibly,€the€intervention€of€Marylandððs€statutoryÐ \ ¬ Ðregime€governing€business€associations,€the€venture€planned€by€Alan€and€Brittany€(ð ðAðð€and€ð ðBðð)Ïwould€result€in€an€implied€partnership,€as€this€appears€to€be€their€intent.€€€The€challenge€for€theÏattorney,€then,€is€to€aid€A€&€B€in€forming€a€legal€entity€that€would€allow€them€to€act€as€partnersÏ(in€a€laymanððs€sense),€while€also€accomplishing€their€other€objectives€with€regard€to€the€rightsÏand€responsibilities€of€each€person.€€An€LLC€would€be€preferable€to€a€general€partnership€in€thisÏrespect.ÌÓsÓÌÓ  Ó€€€€€The€general€partnership€form€has€several€weaknesses€in€this€case.€€In€some€ways,€A€seems€toÏwant€to€play€the€role€of€a€general€partner,€but€of€a€limited€partner.€€In€particular,€his€desire€toÏavoid€personal€liability.€€However,€his€desire€to€participate€(even€through€a€veto€power)€inÏfundamental€decisions€concerning€the€operation€of€the€business€is€inconsistent€with€the€role€of€aÐ €*Ð%) Ðlimited€partner€and€by€participating€in€such€activities,€he€would€open€himself€to€liability€as€aÏgeneral€partner,€which€includes€personal€liability.€€Alanððs€desire€to€contribute€assets€beyond€hisÏinitial€investment€might€also€be€thwarted€because€of€his€legal€responsibilities€as€a€partner.ÌÓ ÓÌÓ  Ó€€€€€An€LLC€is€preferable.€€Under€this€approach,€A€&€B€would€become€members€of€an€LLC€andÏbe€insulated€from€the€entityððs€liability.€€The€LLC€form€would€also€allow€them€to€draft€aÏgoverning€agreement,€equivalent€to€a€charter€or€articles€of€incorporation,€that€would€supplementÏand€displace€the€default€terms€of€the€LLC€statute€governing€LLC€organization.€€This€agreementÏwould€allow€A€&€B€to€implement€their€wishes€with€respect€to€the€allocation€of€profits,€and€workÏout€Aððs€veto€power,€etc.ÌÌÓè ÓÓ  Ó€€€€€2.€€Several€documents€will€be€required€to€accomplish€the€objective€recommended€above.€€€AsÏnoted,€A€&€B€will€have€to€execute€an€agreement€to€govern€the€management€of€their€LLC,Ïincluding€provisions€to€vary€from€the€default€statutory€rules.€€Additionally,€A€&€B€will€have€toÏmake€an€LLC€filing€with€the€Maryland€Department€of€Assessments€and€Taxation.€€This€actionÏenables€business€creditors,€suppliers,€customers,€etc.€of€the€pizza€shop€to€discover€the€nature€ofÏthe€entity€with€which€they€are€dealing€ð!ð€particularly€its€limited€liability€status.€€(Notice€is€alsoÏenabled€by€the€requirement€that€the€entity€include€a€reference€to€its€LLC€status€in€its€businessÏname.)ÌÌÓöÓÓ  Ó€€€€€In€addition€to€these€formation€issues,€A€will€want€to€perfect€his€investment.€€A€note€could€beÏexecuted,€as€well€as€the€security€interest€taken€in€the€assets€of€the€business.€€This€security€interestÏshould€be€recorded€as€it€can€be€perfected.€€Again,€this€serves€to€put€other€creditors€on€notice€andÏto€give,€to€the€extent€possible,€A€priority€over€subsequent€creditors.ÌÌ€€€€€*It€should€be€noted€that€A,€B€and€the€eventual€LLC€may€now€or€later€have€conflicting€interestsÏ(A€&€B€already€do€to€some€extent)€and€representations€by€separate€attorneys€is€thereforeÏimperative.ÌÓ·Óò òà@<<ìàà@@s s ìàREPRESENTATIVE€ANSWER€2ˆÐ €Ð ÐÌÓ  Óó ó€€€€€1.€€A€&€B€desire€to€enter€into€a€business€relationship€where€A€acts€solely€as€investor€and€BÐ X ¨ Ðacts€as€an€active€manager€with€no€investment.€€A€would€like€to€limit€his€investment€to€the€initialÏamount€and€limit€his€liability€to€business€creditors.€€A€would€like€to€retain€veto€powers€in€orderÏto€protect€his€investment.€€A€general€partnership€would€not€be€a€recommended€entity€for€A€&€BÏunder€these€circumstances.€€A€general€partnership€would€expose€A€to€liability€from€businessÏcreditors€and€might€require€additional€investment€should€the€business€not€be€profitable.€€AÏgeneral€partnership€would€be€easier€to€set€up,€in€that€no€formal€documents€are€needed€forÏformation,€but€the€form€of€entity€is€not€appropriate€for€what€A€&€B€want€to€accomplish.€ÌÌ€€€€€A€limited€liability€company€would€be€more€appropriate.€€As€a€member,€both€A€&€B€€would€beÏshielded€from€business€creditors€as€to€their€personal€assets.€€The€investment€in€the€companyÏwould€be€the€only€asset€exposed€to€liability€as€to€A.€€The€documents€of€formation€(operatingÐ |*Ì%) Ðagreement)€would€allow€the€parties€to€specify€the€rights,€obligations€and€duties€of€each€member.ÌÓiÓÓ  Ó€€€€€2.€€€a)€Articles€of€Incorporation:€€This€document€would€be€drafted€to€specify€the€name€of€theÏlimited€liability€company,€which€must€include€ð ðlimited€liability€companyðð,€ð ðL.L.C.ðð€or€ð ðLLCðð€inÏthe€name,€the€names€of€the€members,€address€of€the€business,€purpose€of€the€business€and€term€ofÏthe€business,€if€any€is€to€be€specified.ÌÌÓÓÓ  Ó€€€€€b)€€Operating€Agreement:€€This€document€would€specify€the€rights,€duties€and€obligations€ofÏthe€members.€€Here€is€where€A€&€B€would€specify€that€A€is€investor,€with€no€day„to„dayÏmanagement€responsibilities,€that€B€is€the€day„to„day€manager,€that€A€will€retain€veto€power€overÏpurchases€exceeding€$2,500,€additional€borrowings,€and€employee€hires.€€The€profit€and€lossÏallocation€(50/50)€would€be€specified€as€well.€€The€parties€could€specify€here€that€B€is€to€be€paidÏa€salary€of€$500€per€week,€or€they€could€execute€a€separate€employment€agreement.ÌÌÓ˜ÓÓ  Ó€€€€€c)€€Note€Payable:à ¸ àA€note€will€need€to€be€drafted€showing€the€investment€by€A,€the€interestÐ ¬ü  Ðrate,€and€the€payment€schedule.ÌÌÓáÓÓ  Ó€€€€€d)€€Security€Agreement:€€A€security€agreement€will€need€to€be€drafted€showing€Aððs€securityÏinterest€in€the€assets€of€the€company.ÌÓÓÌò òÐ  4„ Ðà@%ìàQUESTION€2ˆÌÓ  ÓÌÓ  Ó€€€€€ó óIn€1997,€Sam€and€Ronnie€incorporated€S€&€R,€Inc.,€a€Maryland€general€business€corporation.€Ð ˆØ ÐThe€corporationððs€purpose,€as€stated€in€its€Articles€of€Incorporation,€is€to€own€and€operate€hairÏsalons€and€conduct€other€lawful€business€activities.€€Sam€and€Ronnie€are€the€sole€stockholdersÏand€directors€of€S€&€R,€Inc.,€each€owning€a€50%€stock€interest.€€S€&€R,€Inc.€owns€and€operates€aÏhair€salon€in€a€shopping€center€located€in€Baltimore€City.€€After€three€years€of€operation,€theÏbusiness€has€become€financially€successful.€€After€all€expenses,€annual€profits€of€the€corporationÏapproximate€$50,000.ÌÌ€€€€€In€2000,€Sam€learned€that€the€shopping€center€in€which€the€hair€salon€is€located€was€for€sale.€ÏWithout€telling€Ronnie,€Sam€and€his€brother,€Carl,€formed€a€partnership€and€purchased€theÏshopping€center€in€October,€2000.€€Two€months€later,€when€the€hair€salonððs€lease€came€up€forÏrenewal,€the€partnership€refused€to€renew€the€lease€because€it€wanted€to€include€the€space€into€aÏlarge€store€for€use€by€a€major€tenant,€paying€$150,000€annual€rent.€€As€a€result,€the€hair€salon€hadÏto€close€on€December€31,€2000.ÌÌ€€€€€Ronnie€consults€you,€a€Maryland€attorney.€€She€wants€to€know€what€legal€rights,€if€any,€mayÏexist€against€Sam€arising€from€a)€the€purchase€of€the€shopping€center€by€Samððs€partnership,€andÏb)€the€partnershipððs€refusal€to€extend€the€hair€salonððs€lease.€€You€review€the€corporationððs€charter,Ïby„laws,€and€other€relevant€corporation€documents.€€They€are€silent€on€these€issues.€€€NoÏstockholdersðð€agreement€exists.ò òÐ ` ÐÌ€€€€€Write€a€letter€to€Ronnie,€giving€your€advice€and€explaining€the€reasons.ÌÌÌÓB.°°` ¸ hÀpÈ xÐ (#°œXBÓà@<<ìàREPRESENTATIVE€ANSWER€1ˆÌó óÌDear€Ronnie,ÌÌ€€€€€We€could€sue€Sam,€and€we€have€a€decent€argument,€but€it€will€be€very€difficult€to€sue€theÏpartnership.€€Sam€is€a€stockholder,€which€doesnððt€give€rise€to€much€obligation€to€the€corporationÏ(S&R),€but€he€is€also€a€director€which€does€give€Sam€certain€duties€and€responsibilities.€€As€aÏdirector,€Sam€owed€a€duty€of€care,€duty€of€loyalty.ÌÌ€€€€€When€Sam€learned€of€the€shopping€center€being€for€sale,€he€should€have€reported€it€to€theÏBoard€of€Directors€(Ronnie)€before€usurping€that€corporate€opportunity.€€Sam€will€counter€thatÏthis€was€a€corporation€to€run€a€hair€salon,€not€real€estate.€€We€will€rebut€that€with€the€language€ofÏthe€Articles€of€Incorporation€ð ðand€conduct€other€lawful€business€activitiesðð.€€He€will€say€that€thisÏisnððt€a€direct€conflict€with€the€corporation,€but€it€wonððt€be€enough€to€protect€him.€€€He€may€argueÏthat€he€used€good€faith€in€applying€the€business€judgment€rule€in€not€offering€or€disclosing€theÏpurchase.€€He€will€claim€he€had€no€idea€the€corporation€would€be€interested€in,€but€that€will€notÐ €*Ð%) Ðwork€here.€€He€should€have€disclosed€to€you€(Ronnie)€and€allowed€you€on€behalf€of€S€&€R€toÏrefuse€the€purchase€as€being€the€only€interested€director,€before€buying€it.€€He€may€argue€that€theÏcorporation€didnððt€have€the€assets€to€finance€or€get€a€loan€to€secure€such€a€purchase€since€theyÏwere€only€generating€$50,000€in€profits€which€we€will€have€to€research,€but€if€he€and€Carl€couldÏdo€it,€then€possibly€you€and€Sam€could€have€invested€more€into€S€&€R€or€brought€in€Carl€as€aÏstockholder.ÌÌ€€€€€The€partnership€itself€will€be€much€more€difficult€to€sue.€€The€partnership€(p/s)€did€not€oweÏany€duty€to€S€&€R.€€The€Courts€wouldnððt€want€to€penalize€Carl€for€Samððs€inappropriate€behavior.€ÏThe€refusal€to€renew€the€lease€may€be€protected€by€the€business€judgment€rule€and€if€they€wereÏsmart,€it€would€likely€have€been€Carlððs€decision€and€not€Samððs€since€he€had€a€conflict€of€interest.€ÏThe€refusal€to€extend€the€lease€is€a€legitimate€business€decision€unless€we€find€some€otherÏintentional€tort,€(ò òtortiousó ó€business€interferences,€etc.)€which€is€unlikely.Ð À  ÐÌÓ  Ó(This€all€assumes€I€never€represented€the€corporation€which€would€give€rise€to€an€ethics€issue).Ìò òÌÌà@@%ìàÌÓB.°°` ¸ hÀpÈ xÐ (#°°XBÓà@@s s ìàREPRESENTATIVE€ANSWER€2ÌÌó óÓ  ÓDear€Ronnie,Ð $t ÐÌÓ  ÓÓ  Ó€€€€€You€have€requested€my€advice€regarding€Samððs€actions€in€1)€the€purchase€of€the€shoppingÏcenter€and€2)€the€partnershipððs€refusal€to€renew€€S€&€Rððs€lease.€€You€wish€to€know€what€rightsÏyou€may€assert€against€Sam.€€One€question€to€be€answered€is€whether€you€are€seeking€advice€onÏbehalf€of€yourself€as€a€stockholder€or€director€of€the€corporation.€€I€am€assuming€in€your€capacityÏas€stockholder/director.ÌÓE/ÓÓ  Óà  àUnder€Maryland€Corporate€Law,€a€director€owes€the€duty€to€act€in€good€faith,€with€theÏreasonable€belief€that€his€actions€are€in€the€best€interest€of€S€&€R,€and€the€care€of€an€ordinarilyÏprudent€person€in€similar€circumstances.ÌÌà  àThe€first€issue€to€address€is€the€shopping€center€sale,€which€could€be€usurpation€of€aÏcorporate€opportunity€because€the€shopping€center€was€the€same€as€which€the€salon€was€located.ÏIt€is€reasonable€to€believe€that€the€now€profitable€salon€may€have€wished€to€purchase€it€and€avoidÏrent€payments.€€Even€if€the€beauty€shop€did€not€have€the€financial€means,€this€should€have€beenÏoffered€first€to€S€&€R€and€then€only€after€S€&€R€declined,€may€Sam€personally€take€the€offer.€€ÌÌà  àSecondly,€the€failure€to€renew€the€lease€is€troubling.€€Sam€owes€the€duty€of€loyalty€to€bothÏS€&€R€and€€the€partnership€and€he€cannot€serve€two€masters.€€He€should€have€disclosed€the€rentalÏproperty€and€his€interest€in€renewing€the€lease€to€S€&€R.€€However,€all€things€given,€the€failure€toÏrenew€the€lease€does€appear€to€be€for€a€valid€commercial€reason€(need€space€for€tenant)€and€theÏbeauty€shop€had€no€right€to€extend€the€lease€indefinitely.€€But,€Sam€had€knowledge€that€the€shopÐ €*Ð%) Ðwould€close€without€finding€new€space.ÌÌà  àGiven€the€usurpation€of€a€corporate€opportunity,€Ronnie€could€force€Sam€to€sell€theÏbuilding€at€cost€to€S€&€R€or€disgorge€any€profits€from€the€lease€to€the€new€tenant.€€Further,€sheÏcould€seek€to€have€Sam€removed€as€a€director€for€breach€of€fiduciary€duty€and€also€seekÏdissolution€of€S€&€R.€ÌÌÓ1ÓÓ  Óò òÐ  $ t ÐQUESTION€3ÌÌó óÓ  Ó€€€€€Steven€and€Valerie€Jones€were€married€in€Howard€County,€Maryland€in€1990€when€StevenÐ ˆØ Ðwas€40€and€Valerie€was€38.€€Shortly€after€their€marriage,€Steven€lost€his€job€and€began€drinkingÏheavily.€€€When€he€drank,€he€became€physically€abusive€to€Valerie.€€Although€he€eventuallyÏfound€another€job,€the€abuse€continued.ÌÌ€€€€€Steven€is€the€primary€wage€earner€making€an€annual€salary€of€about€$200,000,€and€the€familyÏhealth€insurance€coverage€is€provided€through€his€employer.€€While€Valerie€is€employed,€herÏsalary€is€only€$25,000€per€year€and,€because€of€her€lack€of€education€and€training,€it€is€not€likelyÏto€increase€significantly.ÌÌ€€€€€The€Joneses€have€two€children,€Melissa€and€Brenda,€who€are€eight€and€ten€years€of€ageÏrespectively.€€The€parties€purchased€a€home€in€Columbia,€Maryland€which€is€titled€as€tenants€byÏthe€entireties€and€valued€at€$200,000€with€a€monthly€mortgage€payment€of€$1,365.€€Both€of€theÏchildren€attend€private€schools€at€a€cost€of€$20,000€per€year.€€After€school,€they€attend€a€daycareÏprogram,€which€cost€$150.00€per€week,€where€they€remain€until€Valerie€picks€them€up€in€theÏfamily€van.ÌÌ€€€€€Just€Before€Christmas€2000,€Steven,€once€again,€became€abusive€and€struck€Valerie€with€hisÏfist€with€such€force€that€he€fractured€her€nose.€€Immediately,€Valerie€packed€up€the€children,€wentÏto€a€hospital€for€treatment,€and€,€because€she€feared€further€violence,€moved€in€to€a€motel.ÌÌ€€€€€She€has€come€to€your€office€and€related€these€facts€to€you,€a€Maryland€attorney,€and€told€youÏthat€she€no€longer€wishes€to€be€married€to€Steven€and€that€there€is€no€hope€of€reconciliation.ÌÌò ò€€€€€1.€€What€advice€would€you€give€her€concerning€obtaining€immediate€relief€from€herÐ ¨ø Ðsituation?ÌÌ€€€€€2.€€What€advice€would€you€give€her€concerning€permanent€relief€from€her€situation,Ïdiscussing€all€of€the€relevant€issues?ÌÔ‡òTXXÔ ÔÌÌÔ#†XÔ XòTä>#ÔÔ‡XÔ XXXÔ ÔÓ  ÓREPRESENTATIVE€GOOD€ANSWER€1ó óÐ €"Ð! ÐÌÓ  Ó€€€€€As€concerns€obtaining€immediate€relief€from€her€situation,€Valerie€may€be€able€to€obtain€aÏprotective€order€from€the€court.€€The€order€would€say,€in€essence,€that€she€may€have€temporaryÏcustody€of€the€two€minor€children,€Steven€may€or€may€not€have€visitation€with€his€children,€andÏthat€she€might€be€able€to€stay€in€the€family€home€until€further€developments.€€This€immediateÏrelief€is€granted€by€the€court€because€of€the€abuse€that€Valerie€has€suffered€throughout€the€tenÏyears€of€her€marriage.€€It€is€also€for€the€best€interests€of€the€minor€children€that€they€be€thusÏprotected.€€ÌÐ Ì*&* Ѐ€€€€Also,€obviously€Valerie€wants€a€divorce.€€As€such,€during€the€pendency€of€the€proceedings,ÏValerie€may€also€be€awarded€alimony€pendente€lite.€€This€is€simply€alimony€to€maintain€theÏstatus€quo€of€the€parties€until€the€court€determines€the€issue€of€divorce.€€Furthermore,€ValerieÏmay€be€awarded€not€only€the€use€of€the€family€home€during€the€pendency€of€the€divorceÏproceedings,€for€the€stability€of€the€children,€but€she€will€also€be€granted€the€use€of€property€thatÏwas€used€by€the€family€for€a€family€purpose,€ie.€the€family€car€and€furnishings€in€the€house.ÌÌ€€€€€In€terms€of€permanent€relief,€Valerie€would€seek€a€divorce.€€The€marriage€was€conductedÏlawfully,€and€with€the€required€Maryland€Family€Law€provisions€being€met.€€Here€specifically,ÏValerie€should€seek€an€absolute€divorce€where€the€marriage€is€terminated€and€property€rights€andÏchild€custody€are€determined.€€ÌÌ€€€€€If€she€were€to€get€a€limited€divorce,€this€would€be€a€legal€separation€only€which€does€notÏterminate€the€marriage.€€Thus,€an€absolute€divorce€would€be€best.€€The€grounds€for€divorce€hereÏwould€probably€be€cruelty€or€excessively€vicious€conduct€towards€Valerie.€€Valerie€would€haveÏto€show€that€the€conduct€was€such€that€it€posed€a€serious€risk€of€harm€or€injury€to€her.€€HereÏSteven€continued€a€pattern€of€abuse€for€nearly€ten€years.€€In€the€last€incident€of€abuse,€StevenÏbroke€Valerie's€nose.€€It€is€reasonable€to€argue€that€Valerie€could€fear€for€her€safety€and€even€herÏlife.€€Thus€the€grounds€for€divorce€are€established.€€Steven€would€be€able€to€assert€a€defense€if€heÏhad€any€because€the€ground€for€divorce€is€fault€based.€€ÌÌ€€€€€The€next€thing€to€be€considered€is€division€of€the€marital€property.€€There€is€no€prenuptialÏagreement,€and€no€separation€agreement.€€Thus€the€court€would€have€to€use€the€Marital€PropertyÏAct.€€Thus€the€court€should€identify€the€marital€property.€€Then€value€it€as€of€the€date€of€divorce,Ïand€then€distribute€it€in€the€form€of€a€monetary€award,€in€its€discretion.€€Here€the€only€maritalÏproperty€is€the€house€bought€during€the€marriage€as€tenants€by€the€entireties.€€The€value€of€it€isÏsaid€to€be€$200,000.00€with€a€mortgage€payment.€€ÌÌ€€€€€The€court€must€now€consider€the€other€obligations€that€the€parties€have€such€as€money€forÏschooling€of€the€children.€€After€this,€the€court€must€then€consider€the€factors€laid€out€in€theÏMarital€Property€Act€to€determine€the€amount€of€the€monetary€award.€€These€factors€includeÏcontributions€of€both€parties,€economic€and€non„economic,€the€age,€health€and€mental€stability€ofÏthe€parties,€the€parties€employment,€the€grounds€for€divorce,€etc.€€Once€this€is€done,€the€courtÏmay,€in€its€discretion,€give€a€monetary€award€after€the€divorce€is€granted.€€ÌÌ€€€€€There€is€also€the€issue€of€alimony€or€spousal€support.€€The€purpose€of€alimony€is€rehabilitativeÏto€allow€the€recipient€spouse,€to€in€essence,€get€back€on€their€feet.€€Here,€Steven€is€the€spouseÏwith€the€biggest€salary,€and€his€salary€has€provided€a€certain€lifestyle€for€Valerie€and€the€childrenÏas€evidenced€by€the€children€attending€private€school.€€Another€consideration€is€that€it€is€unlikelyÏthat€Valerie€will€ever€be€able€to€provide€for€herself€and€the€children€in€the€way€Steven€hasÏbecause,€although€she€has€a€job,€her€salary€is€nowhere€near€Steven's€and€is€not€likely€to€riseÏbecause€of€her€lack€of€education€and€training,€although€Steven€could€argue€that€it€would€rise.€Ð |*Ì%) ÐThus,€there€may€even€be€an€award€of€indefinite€alimony,€but€that€is€in€the€judge's€discretion.€€ÌÌ€€€€€Lastly,€there€is€the€issue€of€child€custody€and€support.€€Each€parent€is€responsible€forÏsupporting€their€minor€children.€€Here€the€children€are€both€minors€and€Steven€and€Valerie€mustÏsupport€them.€€With€respect€to€child€custody,€the€court€would€have€to€consider€the€best€interestsÏof€the€children.€€It€could€give€both€Steven€and€Valerie€joint€custody,€or€give€Valerie€sole€custodyÏbecause€of€the€abuse€factor,€in€order€to€protect€the€children.€€However,€even€with€sole€custody,ÏSteven€would€have€to€be€given€visitation€rights.€€Again,€this€is€a€decision€of€the€court€based€onÏthe€best€interests€of€the€children.€€ÌÌ€€€€€With€respect€to€child€support,€the€court€would€look€to€the€child€support€guidelines€andÏdetermine€the€amount.Ô#†XÔ XXXÔ (?#Ôò òÐ Ô$  ÐÓˆ?Óó óÔ‡XÔ XXXÔ ÔÌà@@Ô Ô ìàò òREPRESENTATIVE€GOOD€ANSWER€2ó óÐ ¬ü  ÐÌÓ  Ó€€€€€Her€best€course€of€action€at€the€present€time€is€to€go€to€Circuit€Court€and€file€for€a€protectiveÏorder€from€Steven.€€I€suggest€a€protective€order€because€it€will€be€heard€ex„parte€the€day€that€sheÏfiles€for€it.€€The€ex„parte€order€will€be€followed€by€a€hearing€in€which€Valerie€can€get€use€andÏpossession€of€the€family€home,€child€custody,€child€support,€as€well€as€a€no€contact€orderÏregarding€Steven.€€This€will€give€her€immediate€protection€and€financial€relief.ÌÌÌ€€€€€Also,€that€day,€I€would€file€a€request€for€absolute€divorce€based€on€the€fault€ground€of€abuse.€ÏBecause€of€the€fault€grounds€and€both€parties€are€residents€of€Maryland,€no€residency€orÏseparation€period€is€necessary.€€Valerie€would€get,€and€I€would€ask€for€alimony€pendente€lite.€ÏAlimony€pendente€lite€is€pending€the€litigation.€€It€is€given€based€upon€need€and€regardless€ofÏfault€or€the€likelihood€of€success€at€trial.€€This€would€take€Valerie€a€while€to€get,€but€with€theÏhelp€of€the€protective€order,€she€should€be€financially€O.K.ÌÌ€€€€€As€for€permanent€relief,€that€would€be€addressed€in€an€action€for€absolute€divorce:ÌÌÌ€€€€€1)€Child€Custody€„€due€to€Steven's€violent€nature,€it€would€be€unlikely€that€a€joint€physicalÏcustody€arrangement€work.€€I€would€request€sole€physical€custody€to€Valerie€with€Steven€havingÏliberal€visitation€rights,€and€joint€legal€custody€of€the€children.€€Since€we€have€no€evidence€thatÏSteven€has€done€anything€to€harm€the€children€physically,€there€doesn't€seem€to€be€any€groundsÏto€limit€his€visitation€or€make€it€supervised.ÌÌ€€€€€2)€Child€Support€„€since€the€parties€make€more€than€$120,000.00€per€year€combined,€the€childÏsupport€guidelines€do€not€provide€a€minimum€amount€of€support.€€It€would€be€whatever€the€courtÏfinds€fair€and€reasonable.€€I€would€request€that€children€be€able€to€continue€their€private€schoolÏeducation€although€there€is€no€requirement€that€parents€have€to€pay€for€private€education.€€IÐ |*Ì%) Ðwould€ask€the€court€to€order€Steven€to€keep€the€children€on€his€health€insurance€and€to€pay€ðð€ofÏany€uncovered€medical€expenses.€€I€would€also€ask€that€Steven€pay€for€all€or€at€least€ðð€of€theÏafter€school€daycare.€€I€would€request€an€immediate€wage€withholding€order.ÌÌ€€€€€3)€Alimony€„€because€of€the€disparity€of€salaries€and€educational€training€of€the€couple,€IÏwould€request€Steve€pay€rehabilitative€alimony€to€Valerie€in€such€an€amount€and€or€such€a€timeÏthat€she€will€become€able€to€be€self€sufficient.ÌÌ€€€€€4)€Marital€Property€„€because€minor€children€are€involved,€I€would€ask€for€use€and€possessionÏof€the€family€home€for€the€three€year€maximum€allowed€by€statute.€€I€would€ask€for€aÏcontribution€from€Steven€for€the€mortgage€because€it€is€for€the€benefit€of€the€children.€€At€the€endÏof€the€three€years,€the€house€would€be€sold€and€I€would€request€that€the€profits€be€split€equallyÏbetween€the€parties.ÌÌ€€€€€I€don't€have€enough€information€to€deal€with€the€entire€property€distribution€under€theÏequitable€distribution€theory.€€Valerie€may€be€entitled€to€more€than€50%€based€on€the€partiesÏfinancial€status.ÌÌ€€€€€I€would€also€request€that€Valerie€get€to€keep€the€van.ÌÌÌÌÌÌÔ#†XÔ XXXÔ êR#ÔÓTSÓò òÐ  Ð  ÐQUESTION€4Ìó óÓ  ÓÌ€€€€€Good€Sam€lived€next€door€to€Nellie€Jones,€an€elderly€lady€who€lived€alone€in€a€detachedÏdwelling€in€Glen€Burnie,€Anne€Arundel€County,€Maryland.€€For€many€years,€Sam€performedÏminor€household€and€lawn€chores€for€Nellie€with€no€expectation€of€payment.€€One€day,€NellieÏtold€Sam€that€she€was€going€to€do€something€for€him€because€of€his€many€good€deeds€for€herÏover€the€years.€€Sam€thanked€her,€but€said€that€he€never€really€expected€anything€in€return.ÌÌ€€€€€That€same€day,€Nellie€visited€her€attorneyððs€office€where€she€prepared€and€executed€a€WillÏleaving€her€home€to€Good€Sam€and€her€elderly€sister,€Gladys€Smith,€as€joint€tenants.€€Following€aÏlong€illness,€Ms.€Jones€passed€away€and€Sam€and€Gladys€took€valid€title€to€Nellieððs€home.ÌÌ€€€€€Gladys,€in€need€of€funds,€asked€Sam€to€sell€the€property€and€divide€the€proceeds.€€SamÏrefused,€and€Gladys€hired€an€attorney€who€properly€filed€a€Petition€for€Partition€and€Sale€in€theÏCircuit€Court€for€Anne€Arundel€County.€€Gladys€asked€that€the€Court€appoint€a€trustee€to€sell€theÏproperty€and€distribute€the€proceeds.€€Sam€retained€counsel€who€filed€an€Answer€to€GladysððÏComplaint€opposing€the€sale€of€the€property.ÌÌ€€€€€After€discovery€had€been€completed,€Samððs€counsel€determined€that€there€was€no€way€toÏprevent€the€sale€of€the€property,€and€the€attorneys€prepared,€executed€and€submitted€a€ConsentÏJudgment€to€the€Court€whereby€the€Court€would€appoint€both€attorneys€as€co„trustees€to€sell€theÏproperty,€pay€all€reasonable€costs€and€expenses,€including€trusteesðð€fees,€and€to€distribute€theÏproceeds.ÌÌ€€€€€The€Consent€Order€was€signed€by€the€attorneys€on€May€2,€1999,€and€submitted€to€the€CourtÏfor€approval.€€Samððs€attorney€did€not€consult€with€him€before€signing€the€consent€order.€€On€MayÏ15,€1999,€Gladys€died.€€On€May€21,€1999,€the€Court€approved€the€Consent€Order,€Sam€received€aÏcopy€of€the€Consent€Order€on€May€25,€1999,€and€outraged€by€its€terms,€has€come€to€your€officeÏasking€you,€a€Maryland€attorney,€to€assume€the€defense€of€his€case.ÌÌò ò€€€€€1.€€What€steps€must€you€take€to€assume€responsibility€for€his€case?Ð X ¨ ÐÌ€€€€€2.€€What€action€would€you€take€concerning€the€Consent€Order€executed€by€SamððsÏformer€attorney?ó óÐ #l! ÐÌÔ‡XÔ XXXÔ Ôà@<<ìàò òREPRESENTATIVE€ANSWER€1ó óˆÐ ô$D # ÐÌ€€€€€In€order€to€assume€responsibility€for€the€case€under€Rule€2„132,€when€the€client€has€anotherÏattorney€of€record,€the€former€attorney€may€withdraw€an€appearance€by€filing€a€notice€ofÏwithdrawal.€€After€notice€of€the€withdrawal,€the€new€attorney€has€15€days€to€enter€an€appearance,Ïor€the€absence€of€counsel€will€not€be€grounds€for€a€continuance.ÌÐ |*Ì%) Ѐ€€€€Since€this€action€is€for€a€house,€it€is€assumed€to€be€over€$25,000.00€which€would€give€originalÏjurisdiction€to€the€circuit€court€and€not€the€district€court.€€Here,€as€the€new€attorney,€I€would€haveÏ15€days€after€notice€to€the€court€that€the€previous€attorney€is€no€longer€on€the€case€to€file€anÏappearance.ÌÌ€€€€€The€scope€of€representation€of€an€attorney€in€the€Maryland€Rules€of€Professional€ConductÏstate€that€a€lawyer€must€abide€by€a€client's€decisions€concerning€representation.€€A€lawyer€must€Ìcommunicate€with€his€client€and€keep€the€client€informed€about€the€case.ÌÌ€€€€€The€lawyer€must€inform€the€client€about€all€major€decisions,€and€may€only€proceed€if€there€isÏconsent€after€consultation.€€Here,€the€lawyer,€as€a€co„trustee,€signed€the€consent€order€on€May€2,Ï1999,€without€consulting€with€Good€Sam.€€Since€the€house€was€owned€as€a€joint€tenancy€withÏGladys€Smith,€there€is€a€good€chance€that€any€delay€in€reviewing€the€consent€order€would€haveÏprolonged€the€process€long€enough€for€Gladys€to€die,€and€Sam€would€have€received€the€houseÏbecause€of€the€right€of€survivorship€in€a€joint€tenancy.ÌÌ€€€€€Based€on€the€first€attorney's€breach€of€his€ethical€conduct,€I€would€first€ask€the€court€to€setÏaside€the€consent€order.€€If€it€was€too€late,€I€would€sue€the€original€attorney€for€malpractice€forÏnot€consulting€with€Sam,€and€seek€damages€based€upon€what€Sam€would€have€received€if€he€hadÏreceived€the€house.€€I€would€also€ask€for€costs,€including€attorney's€fees,€associated€with€theÏtransaction.Ìà@<<ìàò òREPRESENTATIVE€ANSWER€2ó óˆÐ  \ ÐÌ€€€€€To€assume€responsibility€for€Sam's€case,€first€I€would€inform€Sam€that€he€must€inform€hisÏformer€attorney€that€he€no€longer€wishes€to€have€the€former€attorney€represent€him.€€After€SamÏhas€notified€his€former€attorney€of€my€representation,€I€would€then€request€his€former€attorney€toÏforward€Sam's€file.€€Next,€under€Rule€2„131(b),€I€would€enter€my€appearance€for€Sam€with€theÏCircuit€Court€for€Anne€Arundel€County€in€writing.€€I€would€then€forward€a€copy€of€my€filing€ofÏmy€appearance€to€Sam's€former€counsel€so€he€or€she€may€strike€their€appearance€under€Rule€2„¼132(a).ÌÌ€€€€€I€would€then€file€a€motion€with€the€Circuit€Court€for€Anne€Arundel€County€asking€that€theÏconsent€order€be€stayed€until€a€hearing€could€be€held€on€the€motion.€€With€the€motion,€I€wouldÏattach€a€memorandum€of€law€setting€forth€the€reasons€why€the€consent€order€should€be€revokedÏby€the€court.€€I€would€argue€that€since€Sam's€former€counsel€did€not€consult€him€prior€to€signingÏthe€consent€order,€he€acted€inappropriately€without€his€client's€permission€under€Rules€1.2(a)€andÏ1.4.€€I€would€further€argue€that€the€terms€of€the€consent€order€are€unconscionable€and€should€beÏvoid€and€I€would€further€argue€that€the€point€is€now€moot€since€his€joint€tenant,€Gladys,€died€onÏMay€15,€1999€which€severed€the€joint€tenancy€and€left€Sam€as€the€sole€owner€of€the€propertyÏunder€Maryland€law€because€as€a€joint€tenant,€he€has€the€right€of€survivorship.ÌÌ€€€€€I€believe€after€making€these€arguments€in€writing€in€a€memorandum€of€law,€the€judge€wouldÐ |*Ì%) Ðsign€a€new€order.€€If€not,€then€I€would€have€requested€a€hearing€on€the€motion€where€I€couldÏargue€the€case€in€open€court.Ô#†XÔ XXXÔ Öh#ÔÐ œì ÐÓ  Óò òÐ  ˆØ ÐQUESTION€5Ìó óÌÓ  Ó€€€€€Anne€Plaintiff€had€been€a€neighbor€of€wealthy€Mr.€Elderly,€a€Maryland€resident,€for€years.€€InÏ1997,€Mr.€Elderly€suffered€a€stroke€and€Plaintiff€began€to€provide€care€for€him€on€a€regular€basisÏat€his€home.€€Plaintiff€made€meals€for€Mr.€Elderly,€cleaned€his€house€and€drove€him€to€theÏdoctorððs€office.€€Her€live„in€boyfriend,€Michael€Boyfriend,€cut€Mr.€Elderlyððs€grass€and€madeÏminor€repairs€to€his€house€as€needed.€€Mr.€Elderly€often€spoke€to€his€good€friends,€George€andÏMartha€Witness,€about€his€gratitude€towards€Plaintiff.ÌÌ€€€€€In€2000,€Mr.€Elderly€died€of€natural€causes.€€His€will€left€his€entire€estate€to€a€distant€relative.€ÏPlaintiff€filed€a€claim€against€the€estate€on€the€basis€that€Mr.€Elderly€had€orally€promised€her€inÏ1997€that€he€would€leave€her€$125,000€in€his€will€if€she€cared€for€him€for€the€remainder€of€hisÏlife.€€The€claim€was€denied€by€the€personal€representative€of€the€estate€and,€after€appropriateÏproceedings€in€the€Orphanððs€Court,€the€issues€were€transmitted€to€the€Circuit€Court€for€trial.ÌÌPlaintiff€will€seek€to€introduce€the€following€evidence€in€her€case€in€chief€at€trial:ÌÌ€€€€€1.€€The€testimony€of€Plaintiff€that€Mr.€Elderly€had€promised€to€leave€her€$125,000€in€his€willÏin€return€for€her€caring€for€him€and€that€she€provided€care€to€him€on€that€basis;ÌÌ€€€€€2.€€The€testimony€of€Michael€Boyfriend€that€Plaintiff€told€him€of€Mr.€Elderlyððs€statement€andÏthat€she€intended€to€provide€care€for€him€in€return€for€the€bequest;ÌÌ€€€€€3.€€Testimony€by€both€George€and€Martha€Witness€that€Mr.€Elderly€told€them€on€severalÏoccasions€that€he€was€very€fond€of€Plaintiff€and€grateful€for€her€assistance€and€that€he€hadÏpromised€her€to€leave€her€$125,000€in€his€will;€andÌÌ€€€€€4.€€Testimony€by€the€Reverend€James€Knox,€a€local€cleric,€that€Anne€Plaintiff€is€an€honest,Ïtruthful€and€forthright€person.ÌÌò ò€€€€€Is€any€of€this€testimony€admissible?€€Why€or€why€not?€€Discuss€each€statementÐ X ¨ Ðseparately.ÌÌó óÔ‡XºmXXXÔ Ôà@##ìàÔ#†XÔ XXXºm‡#ÔÔ‡XÔ XXXÔ Ôò òREPRESENTATIVE€€ANSWER€1ó óˆÐ #l! Ðà@ìì*ìàˆÌ€€€€€The€testimony€of€the€Plaintiff€regarding€Mr.€Elderlyððs€promise€will€not€be€admitted.€€HerÏtestimony€is€hearsay.€€It€is€Ô_Ôan€outÔ_Ô€of€court€statement€offered€to€prove€the€truth€of€the€matterÏasserted.€€But€because€it€is€made€by€a€party€to€the€action,€it€would€ordinarily€be€admitted.€€ButÏbecause€of€the€Dead€Manððs€Statute,€the€testimony€will€be€inadmissible.€€The€testimony€given€byÏthe€Plaintiff€is€in€her€interest€and€Ô_ÔadverseÔ_Ô€to€the€dead€partyððs€interest.€€Ô_ÔPlaintiffÔ_Ô€clearly€has€Ïmotive€for€offering€such€a€statement€to€the€court.ÌÐ |*Ì%) Ѐ€€€€The€testimony€of€Michael€Boyfriend€will€be€inadmissible.€€The€statement€that€she€intended€toÏprovide€care€for€him€in€return€for€the€bequest€does€not€go€to€prove€the€truth€of€the€matterÏasserted,€it€goes€to€show€what€motive€plaintiff€had€for€doing€the€housework€and€chores€necessaryÏto€help€Mr.€Elderly.€€The€repetition€of€Ô_ÔplaintiffððsÔ_Ô€statement€to€Michael€is€hearsay,€but€€it€isÏadmission€of€a€party€and€would€be€inadmissible€as€discussed€above.€€It€is€actually€hearsay€withinÏhearsay€and€it€would€be€necessary€for€both€statements€(plaintiffððs€statement€to€Michael€òòandóó€Mr.Ð L œ ÐElderlyððs€statement€to€plaintiff)€to€fall€within€the€exception€to€hearsay.€€They€do€both€seem€to€beÏexceptions€because€they€are€both€statements€made€by€parties,€but€if€the€Dead€Manððs€StatuteÏmakes€it€inadmissible,€than€it€will€not€be€admissible.ÌÌ€€€€€Testimony€of€both€George€and€Martha€Ô_ÔwitnessÔ_Ô€will€be€admissible.€€Again,€it€is€hearsayÏbecause€it€is€an€out€of€court€statement€which€will€go€to€prove€the€truth€of€the€matter.€€But€again,Ïbecause€it€is€an€admission€of€a€party,€it€is€considered€an€exception€to€the€hearsay€rule.€€(Some€sayÏadmissions€by€parties€are€non„hearsay)€The€deadmanððs€statue€would€not€apply€in€this€situationÏbecause€the€witnessððs€have€nothing€to€gain.€€Their€position€is€not€in€conflict€with€Mr.€ElderlyððsÏestate.ÌÌ€€€€€Testimony€of€Plaintiff€as€to€her€honest,€truthful€and€forthrightness€will€not€be€admissible€in€aÏcivil€trial.€€Testimony€of€this€nature€would€not€be€admissible€unless€the€suit€is€of€the€nature€thatÏher€character€is€in€question€(i.e.€defamation).€€Unless€her€character€comes€into€issue,€she€cannotÏadmit€such€testimony€and€this€is€her€case€in€chief€so€Iððm€sure€it€has€not.ÌÌÓ  Óò òREPRESENTATIVE€ANSWERó ó€2Ð øH ÐÌÓ  Ó€€€€€Statement€1€seems€to€run€afoul€of€the€Dead€Man€Statute.€€A€party€cannot€introduce€evidence,Ïthat€is€oral,€regarding€the€deceasedððs€statement€that€isÔ_Ôñðñò òó óñðñ€in€favor€of€the€partyððs€claim€because€theÏdeceased€is€not€present€to€rebut€such€testimony.€€Here,€Anne€attempted€to€do€just€that,€and€herÏtestimony€is€inadmissible.ÌÌ€€€€€Dead„man.€€This€does€not€violate€the€dead„man€statute€because€Ô_ÔboyfriendÔ_Ô€is€not€the€party€whoÏhas€benefit€from€the€statement.€(Although€it€is€arguable€that€he€would€in€his€capacity€as€AnneððsÏboyfriend).€€Anne€is€the€party€that€stands€to€get€$125,000€so€she€is€the€one€barred€from€testifyingÏabout€the€statement.ÌÓ&ŠÓÌÓ  Ó€€€€€Hearsay.€€Hearsay€is€a€statement€made€by€an€out„of„court€Ô_ÔdeclarantÔ_Ô€offered€for€the€truth€of€theÏmatters€asserted.€€Ô_ÔBoyfriendÔ_Ô€will€not€be€permitted€to€testify€that€ð ðPlaintiff€has€told€him€of€Mr.ÏElderlyððs€statementsðð€because€that€is€hearsay€offered€for€its€truth€subject€to€no€hearsayÏexceptions.€However,€Anneððs€telling€Ô_ÔboyfriendÔ_Ô€that€ð ðshe€intended€to€provide€care€for€him€inÏreturn€for€the€bequestðð€could€come€in€because€it€goes€to€Anneððs€intent€„€a€statement€explainingÏAnneððs€future€intent€to€provide€care€for€Mr.€Elderly.€€If€the€statement€cannot€be€severed,€then€itÏwill€all€come€in€€under€Anneððsò ò€intentó ó€and€then€is€not€hearsay.Ð ”)ä$( ÐÐ „*Ô%) ÐÓÓÓ  Ó€€€€€Dead„man€statute€does€not€apply€because€the€witnesses€are€not€interested€in€the€transaction.€ÏThis€testimony€would€come€in€as€an€exception€to€hearsay€as€an€admission€by€a€party€opponent,ÏÔ_ÔMrÔ_Ô.€Elderlyððs€statement€is€an€admission,€and€the€P.R.€of€his€estate€is€bound€by€it.€€It€is€anÏadmission€because€the€P.R.€and€Mr.€Elderly€are€said€to€be€in€privity,€Mr.€Elderlyððs€statementÏconstitutes€an€admission,€as€it€is€against€the€interest€of€his€estate.€€It€is€therefore€admissible.ÌÓMÓÌÓ  Ó€€€€€Anneððs€character€is€not€an€issue€here.€€This€can€be€proved€byñðñò òó óñðñ€opinion€evidence€„„„„€this€wouldÏÔ_ÔnotÔ_Ô€be€admissible.€€Her€character€for€truthfulness€would€be€at€issue€in€a€defamation€action,€forÏexample.€€If€Anne€testifies,€and€her€credibility€is€implicated,€then€the€Reverendððs€testimonyÏwould€be€admissible.ÌÌÓ  Óò òÐ  Ô$  ÐQUESTION€6ÌÌó óÓ  Ó€€€€€To€help€revitalize€its€cities,€the€State€of€Saturn€enacted€legislation€authorizing€State€fundedÐ ˆØ Ðgrants€to€non„profit€entities€for€purposes€of€acquiring€and€renovating€vacant€city€buildings€for€useÏin€a€manner€that€would€serve€the€community.€€The€grant€program€is€known€as€the€CityÏRevitalization€Program€(ð ðCRPðð).ÌÌ€€€€€The€Church€of€the€Divine€Light,€a€non„profit€entity€(the€ð ðChurchðð),€has€applied€for€a€oneÏmillion€dollar€grant€from€the€CRP.€€The€Churchððs€application€states€that€it€intends€to€acquire€aÏvacant€building€located€in€the€most€destitute€areas€of€Saturnððs€largest€city.€€The€Church€plans€toÏturn€the€building€into€a€community€center€(the€ð ðCenterðð),€consisting€of€classrooms€and€aÏgymnasium.€€The€Center€will€be€open€to€the€public,€and€will€offer€non„sectarian€programsÏtargeted€to€serve€the€low€income€and€elderly€families€in€the€area.€€The€programs€will€includeÏchild€and€adult€day€care,€job€training€classes,€and€youth€basketball€and€volleyball€leagues.ÌÌ€€€€€In€addition,€the€Churchððs€application€states€that€a€portion€of€the€grant€proceeds€will€be€used€toÏconstruct€a€small€chapel€in€the€Center.€€The€Churchððs€application€further€states€that€large€signsÏwill€be€posted€at€each€entrance€to€the€Center,€on€the€door€to€the€chapel,€and€on€the€CenterððsÏbulletin€board,€that€say€the€following:ÌÌà  àà0 ` àChristian€devotional€services€are€held€at€the€Chapel€daily€at€6:00am€and€7:00pm.€ÏòòAttendance€is€Voluntaryóó.€€You€are€welcome€to€use€the€Center€regardless€ofÐ  \ Ðwhether€or€not€you€attend.Ð ` (#` (# ÐÌ€€€€€ò òYou€are€the€attorney€representing€the€State€agency€that€administers€the€CRP.€€The€CRPÐ Ð  ÐDirector€has€requested€you€to€analyze€any€legal€issues€raised€by€the€application.ÌÌ€€€€€Explain€your€answer€fully.ÌÌñðñó óñðñÓ  Óñðñò òñðñREPRESENTATIVE€ANSWER€1ó óÐ pÀ Ðà@@®®%ìàÌÓ  Ó€€€€€This€question€is€one€Ô_Ôwhich€involves€the€Establishment€Clause€of€the€1òòstóó€Amendment€of€theÐ H!˜ ÐConstitution€of€the€USÔ_Ô,€applied€to€states.€€The€test€for€Establishment€Clause:€does€the€action€haveÏa€primary€purpose€which€is€secular,€does€the€action€enhance€or€inhibit€religion,€and€is€Ô_ÔthereÔ_ÔÏexcessive€entanglement€with€religion.ÌÌ€€€€€Here,€the€church€which€is€a€non„profit€entity€qualifies€to€apply€for€this€grant€in€many€waysÏwhich€are€compatible€with€the€3„part€test.ÌÌ€€€€€A€community€center€consisting€of€classrooms€and€a€gymnasium€could€clearly€be€construed€asÏa€primary€secular€purpose.€€However,€if€the€classrooms€are€primarily€used€for€religiousÏinstruction,€this€could€be€a€problem.€€Since€the€Center€is€open€to€the€public,€not€just€members€ofÐ €*Ð%) Ðthe€church,€this€is€secular.€€It€will€also€offer€non„sectarian€programs€which€then€will€not€promoteÏor€inhibit€religion.€€This€will€be€targeted€not€at€religious€groups€but€at€low„income€and€elderlyÏfamilies€in€the€area.€€This€all€works.€€Programs€which€include€child€and€adult€day€care,€jobÏtraining€classes€and€youth€basketball€and€volley€ball€all€appear€to€be€quite€secular€withoutÏpromoting€or€inhibiting€religion,€without€excessive€government€entanglement.ÌÌ€€€€€òòThe€Chapel€and€the€Ô_Ôsignsóó€TheÔ_Ô€problems€arise€when€the€application€states€that€a€portion€of€theÐ 8 ˆ Ðgrant€proceeds€will€be€used€to€construct€a€chapel.€€This€will€interfere€with€the€EstablishmentÏClause€test€provision€which€stated€no€enhancement€of€religion.€€The€church€should€not€use€theÏmoney€for€construction€of€this€chapel.€€It€will€have€to€find€another€source€of€revenue€if€it€isÏdetermined€that€on€balance€the€Churchððs€Center€will€not€overall€be€promoting€religious€activities.ÌÌ€€€€€òòThe€Signsóó€It€must€be€determined€whether€Voluntarily€Attended€Christian€devotional€servicesÐ À  Ðwhich€take€place€at€6€Ô_ÔAMÔ_Ô€and€7€PM€will€be€enhancing/promoting€religion€and€distracting€fromÏthe€primary€secular€purpose€of€the€Community€Center€and€its€funding€from€the€State.ÌÌ€€€€€The€line€which€states€ð ðyou€are€welcome€to€use€the€Center€regardless€of€whether€or€not€youÏattendðð€is€encouraging€to€the€fact€that€religion€is€not€being€shoved€down€anyoneððs€throats.€€It€isÏalso€questionable€Ô_ÔwhetherÔ_Ô€voluntary€services€at€the€designated€times€„€early€at€6€AM€and€at€7€PMÏwould€really€take€away€from€the€secular€character€of€the€building€and€its€programs.ÌÌ€€€€€The€Church€of€the€Divine€Light€could€be€awarded€the€grant€if€it€did€not€use€the€grant€money€toÏconstruct€a€small€chapel.ÌÌÓ  Óò òREPRESENTATIVE€ANSWER€2ó óÐ Ð  ÐÌÓ  Ó€€€€€The€CRPððs€application€raises€1òòstóó€amend€Establishment€of€Religion€issues.€€In€order€for€theÐ ¨ø Ðapplication€to€pass€constitutional€muster,€it€must€pass€the€Lemon€Test€established€by€òòLemon€v.Ð ”ä ÐÔ_ÔKurtzmanÔ_Ôóó.€€The€act€must€have€a€secular€nonreligious€purpose€2)€neither€advance€non€inhibitÐ €Ð Ðreligion€and€3)€there€must€be€no€excessive€Ô_ÔgovððtÔ_Ô€entanglement.€€There,€the€purpose€of€the€CPRððsÏapplication€corresponds€to€the€stateððs€and€meets€the€3€part€Ô_ÔtestÔ_Ô€up€until€the€portion€stating€theyÏwant€to€construct€a€small€chapel.ÌÌ€€€€€The€community€centerððs€being€open€to€the€public,€offering€non„sectarian€programs,€the€childÏand€adult€care,€job€training€and€basketball€and€volleyball€league€all€meet€the€constitò ò.ó ó€Ô_ÔstandardsÔ_Ô.€Ð $X" ÐThe€fact€that€the€application€is€sought€by€The€Church€of€Divine€Light,€does€not€advance€religionÏnor€create€excessive€Ô_ÔgovððtÔ_Ô€entanglement€because€the€church€is€a€non€profit€organization€andÏwould€be€allowed€access€to€the€state€funded€grants€as€long€as€all€activity,€purpose€and€function€ofÏthe€community€center€was€secular€in€purpose€and€no€religious€instruction€taught€in€theÏclassrooms.€€However,€Ô_Ôstate€fundedÔ_Ô€grants€creates€entanglement€with€religion€when€the€centerÏwould€house€a€chapel€built€with€state€funds.€€One€will€argue€brick€and€mortar€does€not€equate€toÏreligious€purpose€or€goal.€€However,€after€the€bricks€and€mortar€form€the€chapel€constructed€withÐ €*Ð%) Ðstate€funds,€religious€services€will€be€held€therein€and€the€fact€that€these€services€will€beÏvoluntary€does€not€change€the€outcome€that€a€church€is€1)€not€secular€in€purpose€in€that€theÏChurch€of€Devine€Light€will€hold€religions€services€based€on€their€religion,€2)€those€services€inÏthe€chapel€will€advance€religion,€3)€and€the€state€funded€grants€will€be€found€to€be€significantÏstate€involvement€for€excessive€govððt€entanglement.ÌÌ€€€€€I€would€recommend€that€CRP€not€construct€the€chapel€and€that€they€delete€that€portion€of€theÏapplication€and€in€no€way€should€any€religious€instruction€or€church€services€be€held€at€theÏcommunity€center.€€The€center€is€looking€to€do€great€things€in€the€community€and€I€applaudÏthem,€however,€the€state€may€not€in€any€way€fund,€or€help€fund€a€program€that€is€1)€òònotóó€secular€inÐ ü L  Ðpurpose€and€effect€2)€that€advances€or€inhibits€religion€and€3)€that€involves€excessive€govððtÏentanglement.€€State€funds€are€adequate€to€constitute€government€entanglement.ÌÌÌÔ#†XÔ XXXÔ Û#ÔÌÌÓ  Óò òÐ  pÀ ÐQUESTION€7ÌÌó óÓ  Ó€€€€€While€driving€to€visit€friends€in€Baltimore,€Chris€was€caught€in€a€sudden€blinding€snow€andÐ ˆØ Ðice€storm.€€Chris€pulled€of€f€the€road€in€Howard€County,€Maryland,€to€seek€emergency€shelter€forÏthe€night.€€Chris€found€a€hotel€near€the€exit€of€the€Interstate,€and€drove€into€the€parking€lot€to€getÏa€room€to€wait€out€the€storm.€€Only€the€part€of€the€parking€lot€directly€in€front€of€the€hotel€and€theÏcovered€sidewalk€by€the€front€entrance€were€shoveled€and€relatively€clear€of€ice€and€snow.€€TheÏrest€of€the€parking€lot€and€sidewalks€were€untreated,€€and€were€covered€with€several€inches€of€iceÏand€snow.ÌÌ€€€€€Chris€left€his€dog,€Tray,€in€the€car€while€Chris€registered€for€a€room.€€Chris€asked€the€deskÏclerk€for€a€room€near€an€exit€to€the€parking€lot€so€that€it€would€be€easy€to€walk€Tray€and€to€moveÏsuitcases€into€and€out€of€the€hotel.€€Although€it€was€against€hotel€policy€to€assign€rooms€at€the€farÏend€of€the€hotel€in€inclement€weather€unless€all€of€the€rooms€close€to€the€core€area€of€the€hotelÏwere€filled,€the€clerk€assigned€Chris€to€a€room€at€the€far€end€of€the€hotel€after€Chris€insisted€thatÏthe€requested€location€was€essential.€€The€Clerk€reminded€Chris€that€the€parking€lot€andÏsidewalks€were€untreated,€and€advised€Chris€to€walk€carefully.€€Chris€parked€the€car€near€the€exitÏat€the€far€end€of€the€hotel,€and€Chris€walked€Tray€into€the€hotel.€€As€he€took€Tray€in,€ChrisÏslipped€on€the€ice€all€the€way€back€to€the€hotel.ÌÌ€€€€€Chris€went€back€outside€to€unpack€the€car.€€On€the€way€back€to€the€car,€Chris€slipped€and€fellÏon€the€ice€and€suffered€a€broken€arm€that€required€surgery.€€Chris€filed€a€timely€personal€injuryÏcomplaint€in€the€proper€court€against€the€hotel€for€failing€to€clear€the€parking€lot,€for€failing€toÏkeep€the€parking€lot€properly€lighted,€and€for€failing€to€provide€adequate€warnings€about€theÏcondition€of€the€parking€lot.€€Chris€also€claimed€that€the€hotel€had€a€heightened€duty€to€travelersÏin€a€storm€to€provide€safe€shelter€in€an€emergency€situation.ÌÌò ò€€€€€a)€What€defenses€can€the€hotel€assert€against€the€complaint€filed€by€Chris?€€ExplainÐ ”ä Ðfully.ÌÌ€€€€€b)€Assuming€that€the€testimony€is€consistent€with€the€stated€facts,€evaluate€ChrisððsÏchances€of€success€in€prevailing€against€the€hotel.ÌÌÓ  ÓREPRESENTATIVE€ANSWER€1ÌÓ  ÓÌó ó€€€€€a)€€The€hotel€can€assert€two€primary€defenses€against€Chris.€€These€are€1)€contributoryÐ ô$D # Ðnegligence€and€2)€assumption€of€risk€3)€the€hotel€can€also€claim€lack€of€negligence€on€the€merits.ÌÓ?+Ü Ü4Œ ä <”ìDœôL¤ü!°°X?ÓÌÓB.ÜÜ4` Œ ä <”ìDœôL¤ü!ÜÜŒXBÓà0  àà04(#(#àà  àð"ðà 4 àSince€Maryland€recognizes€òòcontributory€negligence€óóas€a€defense,€it€can,€if€established,Ð ¸'#& Ðcompletely€bar€Chris€from€recovery.€€To€prevail,€the€hotel€must€demonstrate€thatÏChris€did€not€act€in€a€reasonable€manner€ð!ði.e.€by€walking€across€the€ice€covered€lotÏand€that€this€action€was€the€proximate€and€legal€cause€of€his€injury.€€This€will,€inÐ |*Ì%) Ðeffect,€cancel€out€any€negligence€on€the€part€of€the€hotel.Ð 4(#4(# ÐÌà0  àà04(#(#àà  àð"ðà 4 àAdditionally,€the€hotel€may€assert€that€Chris€assumed€the€risk€of€the€icy€lot,€and€isÐ ˆØ Ðtherefore€barred€from€recovery.€€Assumption€of€risk€may€be€either€express€(as€throughÏan€affirmation)€or€implied,€based€on€conduct.€€The€person€assuming€the€risk€must€beÏcognizant€of€its€nature€and€scope.€€The€hotel€will€therefore€contend€that€ChrisÏknowingly€subjected€himself€to€risk€by€requesting€the€room€that€he€did€and€byÏattempting€to€negotiate€the€ice€covered€lot.Ð 4(#4(# ÐÌà0  àà04(#(#àà  àð"ðà 4 àThe€hotel€may€also€assert€that€it€did€not€owe€a€heightened€duty€as€claimed€by€theÐ ü L  Ðplaintiff.€€It€will€base€this€on€the€fact€that,€while€innkeepers€do€owe€a€high€standard€ofÏcare€to€guests,€it€is€not€enhanced€or€expanded€to€travelers€in€a€storm.€€Whether€theÏhotel€was€liable€to€Chris€after€he€registered€as€a€guest€would€turn€on€standardÏnegligence€principles€ð!ð€i.e.€was€there€a€duty,€was€it€breached,€was€the€breach€theÏproximate€and€legal€cause€of€the€injury€and€were€damages€sustained.Ð 4(#4(# ÐÓH+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ4‚,ä ‰XHÓÌÓB.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜŒXBÓ€€€€€The€hotel€will€contend€that,€due€to€the€suddenness€of€the€storm€and€the€explicit€warningsÏgiven€ð!ð€that€they€òòreasonably€complied€óówith€their€duty€to€affirmatively€inspect€and€warn€theirÐ \¬ Ðguest/invitee€of€potential€hazards.€€Having€done€so,€they€will€assert€that€they€were€not€negligentÏand€that€Chris€should€not€be€allowed€to€recover.Ìà0 Ü àà ° àÐ Ü(#Ü(# Ѐ€€€€b)€€Based€on€the€facts€presented,€it€appears€that€the€hotel€has€a€strong€likelihood€of€prevailing.€ÏThe€hotel€took€prompt€and€reasonable€steps€to€clear€a€portion€of€the€lot€from€ice€and€snowÏaccumulation€ð!ð€ostensibly€while€the€storm€was€still€ongoing.€€Thus,€even€though€the€hotel€has€aÏheightened€duty,€it€is€not€strictly€liable.€€Warnings€were€given€and€the€icy€condition€of€the€lotÏwere€certainly€apparent.€€Therefore,€Chris€is€likely€to€fail€through€inability€to€establish€a€breachÏof€duty/care.ÌÌ€€€€€Additionally,€the€hotel€has€strong€grounds€for€an€assumption€of€risk€defense€as€noted€above.€ÏChris€knowingly€used€the€ice€covered€walkway,€and€he€was€presumably€aware€of€the€risk€ofÏslipping.Ìà0 Ü àÐ Ü(#Ü(# ÐÝ‚ÿÿÿÝÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔÝ  Ý€€€€€Finally,€even€if€the€hotel€was€found€to€be€negligent€through€breach€of€the€requisite€standard€ofÏcare,€Chris€will€still€be€subject€to€the€contributory€negligence€defense€noted€earlier.€€The€exit€atÏthe€far€end€of€the€hotel€was€not€the€only€access€ð!ð€he€used€it€merely€as€a€convenience€despite€theÏcondition€and€warnings.ÌÝ‚ÿÿÿüǃÝÔ  ÔÔ  ÔÓ*ÜÜ‚,Œ ŠXÜÜ‚,Œ ŠX*ÓÓ  ÓÝ  Ýà0 Ü àÐ Ü(#Ü(# Ѐ€€€€Judgment€for€hotel.Ó IÓÌÓñºÓÝ‚ÿÿÿÝÔ&  ÔÓ  ÓÔ  ÔÔ  Ôò òÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  ÔREPRESENTATIVE€ANSWER€2Ô -ËÔó óÐ ç(7$' ÐÝ‚ÿšÊ€in€ÝÔ  ÔÔ  ÔÔ'ç(ªÊÔÓ  Óñöñó óñöññðñó óó óó óñðñÝ  ÝÓ  ÓÓB.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜŒXBÓ€€€€€a)€€In€an€action€on€the€theory€of€negligence,€as€asserted€by€Chris,€the€plaintiff€has€the€burdenÐ +R&) Ðto€prove€1)€defendant€owes€him€a€duty,€2)€defendant€breached€the€duty,€3)€the€breach€was€theÏactual€and€legal€cause€of€plaintiffððs€injury,€and€4)€plaintiff€did€suffer€injury.Ó IÓÌÌ€€€€€The€hotel€will€argue€that€it€did€not€breach€any€of€its€duty€toward€Chris,€a€hotel€customer.€€ItÏacted€prudently€like€any€other€hotel€would€have€reasonably€acted€under€the€circumstances.€€TheÏduty€owed€to€Chris€as€a€business€invitee€include€a€reasonable€inspection€of€the€hotel€premises,Ïremove€or€warn€any€hidden€conditions€that€may€endanger€a€guest.€€The€storm€was€a€sudden€one.€ÏThe€hotel€did€its€best€to€clear€the€part€of€the€parking€lot€most€traveled€by€its€guest,€front€entrance,Ïsidewalks.€€The€clerk€warned€Chris€that€the€parking€lot€and€sidewalks€to€the€far€end€wereÏuntreated.€€On€these€facts,€the€hotel€will€contend€that€Chris€failed€to€meet€his€burden€to€prove€thatÏthe€hotel€breached€its€duty.Ìà0 Ü àà0Ü(#Ü(#àÐ (#(# Ѐ€€€€In€addition,€the€hotel€will€argue€that€Chris€was€contributorily€negligent,€which€will€bar€himÏfrom€recovery€even€if€the€hotel€is€found€negligent.€€Under€the€circumstances,€Chris€should€walkÏcarefully,€and€he€failed€to€do€so.Ìà0 Ü àà0Ü(#Ü(#àÐ (#(# Ѐ€€€€The€hotel€also€has€a€strong€argument€that€Chris€assumed€the€risk.€€He€was€advised€that€theÏsidewalks€to€the€far€end€of€the€room€is€not€treated.€€He€assumed€the€risk€of€insisting€on€a€far€endÏroom.€€His€assumption€of€risk€became€more€apparent€after€he€fell€the€first€time.€€By€then,€heÏshould€know€that€the€untreated€part€of€the€parking€lot€and€sidewalk€is€extremely€slippery,€heÏnevertheless€assumed€the€risk€of€walking€back€on€the€same€path.€€His€action€led€to€his€secondÏfall,€which€caused€the€injury.ÌÌ€€€€€b)€€Chrisððs€chance€of€success€is€not€good.€€He€could€argue€that€the€hotel,€as€a€publicÏaccommodation,€does€have€a€heightened€duty€to€the€care€of€their€guest.€€The€hotelððs€failure€toÏprovide€adequate€lighting€may€be€a€good€argument€to€negligence.€€He€could€further€assert€that€theÏclerk€assigned€him€rooms€at€the€far€end€in€violation€of€hotel€policy,€which€is€indicative€ofÏnegligence.ÌÌ€€€€€The€hotel€could€counter€that€even€under€a€heightened€duty,€it€acted€like€a€reasonable€hotel.€ÏThe€inadequate€lighting€is€not€a€cause€to€Chrisðð€fall.€€(The€facts€do€not€describe€how€bad€theÏlighting€was).€€Finally,€the€hotel€policy€was€not€designed€for€customer€safety,€instead,€it€wasÏdesigned€for€convenience€of€hotel€maintenance.Ó IÓÌò òÐ  K$›" ÐÑ€rÑÑ€P¸Ññøñà@%ìàñøñQUESTION€8ó óÝ‚ ÿ݈Ð ° ÐÓ  ÓÔ  ÔÔ  ÔÝ  Ý€€€€€For€many€years,€Jones€has€represented€Smith,€the€sole€proprietor€of€a€mobile€pet€groomingÏbusiness€in€Cecil€County,€Maryland.€€€Ó IÓÌÝ‚ ÿÿÿðÖƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÌ€€€€€In€1998,€Smithððs€business€and€profits€grew€dramatically€due€to€the€success€of€his€recentlyÏcreated€customer€locator€program.€€Smith€decided€to€incorporate€his€business,€to€bring€anÏadditional€owner/manager€into€the€business,€and€to€raise€additional€capital€by€selling€shares€ofÏcommon€stock€in€the€corporation.€€Smith€made€an€offer€to€sell€some€of€the€corporationððsÏcommon€stock€to€Clark,€the€person€who€had€helped€him€develop€the€innovative€marketingÏprogram.ÌÌ€€€€€Smith€and€Clark€met€with€Jones€in€early€1999€to€discuss:€(i)€the€structure€of€the€sale€ofÏcommon€stock€to€Clark;€€(ii)€a€possible€initial€public€offering€(ð ðIPOðð)€of€stock€to€the€public;€andÏ(iii)€ways€to€attract€venture€capital€through€a€private€sale€of€stock€to€an€investor.€€Jones€was€veryÏeager€to€expand€his€law€firmððs€business€even€though€he€had€never€before€provided€legal€servicesÏrelated€to€an€IPO.€€Jones€told€Smith€that€one€of€his€existing€clients,€Ms.€Investor,€would€be€theÏperfect€person€to€provide€venture€capital.€€Jones€informed€Smith€and€Clark€that€Jones€wouldÏperform€the€legal€work€necessary€to€accomplish€their€goals€at€twice€his€usual€and€customaryÏhourly€rate.€€Jones€estimated€that€the€total€fee€for€completing€the€work€would€be€about€$60,000.ÌÌ€€€€€Smith€and€Clark€were€surprised€at€the€amount€of€the€fee.€€Smith€asked€Jones€to€accept€stock€inÏthe€corporation€instead€of€a€cash€fee€because€it€seemed€to€be€the€only€way€to€pay€the€substantialÏfee€without€taking€cash€out€of€the€corporation.€€Smith,€Clark,€and€Jones€agreed€to€meet€again€inÏthree€days€to€finalize€the€business€plan,€legal€representation,€and€fee€arrangement.€€ÌÌ€€€€€ò òWhat€professional€responsibility€concerns€does€Jones€have€with€respect€to€undertakingÐ ë; Ðthe€potential€representations€and€proposed€fee€arrangement?€Explain€fully.€ó óÓ IÓÐ Û+ ÐÓ  ÓÝ‚ÿÿÿÝÔ&  ÔÓ  ÓÔ  ÔÔ  Ôò òÝ  ÝÔ  ÔREPRESENTATIVE€ANSWER€1Ô ÌßÔó óÐ öF МÝ‚ÿ~ßChriÝñøñó óñøñÔ  ÔÔ  ÔÔ'öŽßÔÓ  Óñøñó óñøññöñó óñöññðñó óó óó óñðñÝ  Ý›Ó  Ó€€€€€As€an€attorney,€Jones€has€a€responsibility€to€represent€his€clientððs€interest€with€utmost€careÏand€competence€as€stated€in€the€Md.€Rules€of€Professional€Conduct€(RPC).€€Although€Jones€canÏrepresent€the€business€as€a€new€client,€he€must€also€determine€if€he€has€any€conflicts€of€interestsÏ(COI)€with€his€existing€clients€(Smith).€€Smith€can€waive€these€conflicts€after€a€discussion€inÏwhich€any€potential€and€past€conflicts€are€disclosed,€and€a€reasonably€prudent€attorney€would€notÏobject€to€a€waiver€of€any€conflict.€€Jones€should€ask€Smith€to€waive€and€give€his€consent€inÏwriting€to€represent€Smith€and€Clark.€€Jones€should€also€disclose€and€seek€consent€from€ClarkÏabout€potential€COI€arising€from€this€new€representation.Ó IÓÌÌ€€€€€Jones€must€also€assess€his€skills€and€competence€to€do€the€legal€work€needed€to€structure€theÏsale€of€common€stock€to€Clark,€the€IPO€to€the€public€and€its€related€legal€pitfalls€and€SECÐ I+™&) Ðrequirements.€€Although€he€has€not€done€this€work€before,€he€can€still€adequately€research€theÏlegal€issues€and€related€filing€and€disclosure€requirements€to€do€a€competent€job.€€However€heÏmust€factor€this€into€his€schedule€in€order€to€adequately€prepare€and€do€the€necessary€work€forÏthis€clientððs€interests.ÌÌ€€€€€The€fee€must€be€reasonable€in€respect€to€his€time,€skills,€and€possible€impacts€on€existingÏclients/future€clients€demand€on€his€time.€€Since€the€IPO€is€very€complicated€and€take€additionalÏpreparation€on€his€part,€$60,000€may€be€reasonable€ð!ð€although€it€was€twice€his€usual€andÏcustomary€hourly€rate.€€It€may€still€satisfy€RPC€standards.ÌÌ€€€€€It€is€permissible€to€bring€Smith€and€Clark€together€with€Ms.€Investor€only€after€discussing€thisÏwith€Ms.€Investor€and€receiving€her€consent,€because€she€is€an€existing€client,€he€has€a€duty€notÏto€disclose€any€confidential€information€or€share€information€without€either€clientððs€consent.€ÏJones€should€also€carefully€avoid€potential€COI€with€accepting€stock€instead€of€a€cash€feeÏbecause€Smith€and€Clark€would€need€to€be€advised€that€a€business€arrangement€with€a€clientÏdemands€independent€representation€to€ensure€RPC€standards€of€the€transaction€are€fair€andÏreasonable.€€However,€if€Smith€and€Clark€insist€after€independent€representation€is€obtained,€or€ifÏthey€waive€this€right€in€writing;€this€does€not€rise€to€the€level€of€a€prohibited€transaction€underÏthe€RPC.€€However,€it€increases€the€potential€COI€involved€for€all€in€the€case€of€a€legal€problemÏarising€with€Jonesðð€work.ÌÌ€€€€€Jones€should€clarify€who€he€represents€and€in€what€capacity,€and€avoid€any€appearance€ofÏconflict€of€interest€or€taking€advantage€of€past€or€current€clients.€€His€legal€services€may€involveÏthe€public€as€potential€buyers€of€stock€ð!ð€so€he€must€disclose€any€financial€€interests€he€has€in€theÏIPO.€€This€also€puts€him€at€risk€of€misrepresentation€if€the€disclosure€is€not€complete€andÏaccurate.€€The€Bar€Counsel€would€investigate€any€complaints€and€charge€him€with€disciplinaryÏsanctions€and€possible€disbarment€if€he€fails€to€document,€disclose,€and€get€consent€inÏaccordance€with€the€ethical€demands€of€RPC.Ó IÓÌÓ  ÓÝ‚ÿÿÿÝÔ&  ÔÓ  ÓÔ  ÔÔ  Ôò òÝ  ÝÔ  ÔREPRESENTATIVE€ANSWER€2Ô oíÔó óÐ ¯ÿ МÝ‚ÿ!íChriÝñøñó óñøñÔ  ÔÔ  ÔÔ'¯1íÔÓ  Óñøñó óñøññöñó óñöññðñó óó óó óñðñÝ  ݛ݂ÿÿÿÝÔ& Ø ÔÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔòòÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  Ôò òPotential€conflict€of€interest€between€Smith€and€Clarkó óÔ -ïÔóóÓ IÓÐ Ê! МÝ‚ÿRîChriÝñøñóóñøñÔ  ÔÔ  ÔÓ$ÜÜ‚,Œ ŠXÜÜŒX$ÓÔ'ØÊ!bîÔÓ  ÓñøñóóñøññöñóóñöññðñóóóóóóñðñÝ  Ý›ÌÓ  Ó€€€€€Jonesððs€first€concern€arises€in€undertaking€to€represent€both€Smith,€existing€client,€and€Clark,Ïa€potentially€new€client,€in€this€deal.€€A€lawyer€may€not€accept€representation€of€a€new€client€ifÏdoing€so€will€create€a€conflict€of€interest€with€an€existing€client.€€A€conflict€of€interestÏencompasses€anything€that€might€materially€limit€an€attorneyððs€representation€of€a€client.€€Here,ÏJonesððs€dual€representation€might€materially€limit€his€ability€to€act€in€the€best€interest€of€Smith,Ïhis€existing€client€to€whom€he€owes€a€fiduciary€duty.ÌÌ€€€€€Jones€should€present€this€concern€to€both€Smith€and€Clark€and€only€if€he€obtains€a€waiverÏfrom€both€(i.e.,€consent),€òòandóó€reasonably€believes€that€he€can€represent€them€without€a€potentialÐ +R&) ÐÑP¸Ñâ âÑ  Ñâ âÑ  Ñconflict€that€would€materially€limit€his€representation€of€either€can€he€undertake€theÏrepresentation.ÌÓlðÓÌÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔòòÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  Ôò òPotential€conflict€between€Smith/Clark€and€Ms.€Investoró óóóÔ õÔÐ tÄ МÝ‚ÿ;ôÐÝñøñóóñøñÔ  ÔÔ  ÔÓ$ÜÜ‚,Œ ŠXÜÜŒX$ÓÔ'ØtKôÔÓ  ÓñøñóóñøññöñóóñöññðñóóóóóóñðñÝ  Ý›ÌÓ  Ó€€€€€The€same€issue€arises€with€respect€to€Ms.€Investorððs€involvement€in€investing€in€theÏcorporation.€€Should€the€corporation€fail€at€any€point,€a€conflict€of€interest€might€arise€betweenÏSmith€(and€Clark)€and€Ms.€Investor.€€Jones€probably€should€not€attempt€to€represent€them€all€inÏthis€transaction.ÌÓDöÓòòÌÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔòŽòÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  Ôò òJones€as€corporate€Lawyeró óÔ qøÔóŽóóóÐ è 8  МÝ‚ÿ–÷ÐÝñøñóóñøñÔ  ÔÔ  ÔÓ$ÜÜ‚,Œ ŠXÜÜŒX$ÓÔ'Øè ¦÷ÔÓ  ÓñøñóóñøññöñóóñöññðñóóóóóóñðñÝ  Ý›ÌÓ  Ó€€€€€Moreover,€a€corporate€lawyer€represents€the€corporation€first€and€foremost,€and€not€itsÏdirectors,€officers,€shareholders€or€investors.€€Therefore,€Jones€must€make€his€status€clear€to€allÏinvolved:€he€either€represents€an€individual€òòoróó€the€corporation,€but€not€both€together.Ð ˜è  ÐÓ„ùÓÌÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔòòÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  Ôò òConflict€of€Interest€between€Jones€and€his€clients€ó óÔ ¯ûÔóóÐ pÀ МÝ‚ÿÔúÐÝñøñóóñøñÔ  ÔÔ  ÔÓ$ÜÜ‚,Œ ŠXÜÜŒX$ÓÔ'ØpäúÔÓ  ÓñøñóóñøññöñóóñöññðñóóóóóóñðñÝ  Ý›ÌÓ  Ó€€€€€Another€potential€conflict€has€arisen€if€Jones€takes€on€this€representation€primarily€toÏadvantage€his€own€business.€€He€must€remain€wary€that€his€own€interests€do€no€conflict€withÏthose€of€his€clients.ÌÓÙüÓÌÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔòòÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  Ôò òJonesððs€competenceó óÔ ¡þÔóóÐ øH МÝ‚ÿÆýÐÝñøñóóñøñÔ  ÔÔ  ÔÓ$ÜÜ‚,Œ ŠXÜÜŒX$ÓÔ'ØøÖýÔÓ  ÓñøñóóñøññöñóóñöññðñóóóóóóñðñÝ  Ý›ÌÓ  Ó€€€€€€€Perhaps€even€more€disturbing,€Jones€would€seem€to€lack€the€skill€necessary€to€undertake€thisÏrepresentation,€which€entails€some€complicated€issues.€€A€lawyer€has€a€duty€to€represent€his€orÏher€clients€competently,€and€therefore€not€to€accept€representation€that€would€clearly€exceed€theÏlawyerððs€degree€of€skill.€€Unless€Jones€is€reasonably€convinced€that€he€can€acquire€the€skill€andÏcompetence€necessary€for€effective€representation€in€this€context€ð!ð€i.e.,€through€research,Ïimmediate€training,€or€association€with€a€€lawyer€experienced€in€such€transactions€ð!ð€he€shouldÏdecline€it.ÌÓ­ÿÓÌÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔòòÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  Ôò òJonesððs€feeó óÔ ýÔóóÐ 0"€  МÝ‚ÿ"ÐÝñøñóóñøñÔ  ÔÔ  ÔÓ$ÜÜ‚,Œ ŠXÜÜŒX$ÓÔ'Ø0"2ÔÓ  ÓñøñóóñøññöñóóñöññðñóóóóóóñðñÝ  Ý›ÌÓ  Ó€€€€€If€Jones€does€represent€Smith€et€al.€in€this€matter,€his€proposed€fee€sounds€excessive.€€AnÏattorneyððs€fee€should€be€reasonable,€and€should€reflect€the€attorneyððs€level€of€skill€and€experienceÏas€well€as€the€complexity€of€the€issues€and€the€likely€time€involved.€€Given€Jonesððs€relative€lackÏof€skill,€$60,000€is€a€very€high€fee€even€for€such€complex€issues.€€If€that€is€the€standard€fee€in€theÏarea€for€comparable€representation,€however,€it€may€stand.Ìâ âÓÓÐ ¤(ô#' ÐÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÓH.ÜÜ4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXHÓÔ  ÔÔ  ÔòòÝ  ÝÓE+Ü Ü4Œ ä <”ìDœôL¤ü!ÜÜ‚,Œ ŠXEÓÔ  Ôò òÔ  Ôâ âStock€as€paymentó óÔ ìÔóóÐ ° МÝ‚ÿÐÝñøñóóñøñÔ  ÔÔ  ÔÓ$ÜÜ‚,Œ ŠXÜÜŒX$ÓÔ'ذ!ÔÓ  ÓñøñóóñøññöñóóñöññðñóóóóóóñðñÝ  Ý›ÌÓ  Ó€€€€€Generally,€an€attorney€may€accept€payment€from€a€client€in€the€form€of€stock,€but€here,€givenÏthe€nature€of€the€corporation€and€its€changing€the€status,€it€threatens€to€pose€yet€another€conflictÏof€interest.€€Jones€may€enter€into€a€business€deal€with€his€client€(which€is€what€such€acceptanceÏwould€essentially€entail)€only€if€he€thinks€the€deal€is€fair€and€reasonable€to€the€client,€and€if€heÏcounsels€the€client€to€seek€independent€advice€from€another€attorney.ÌÌÌÝ‚!ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  Ýò òÐ  ü L  ÐÑrÑâ âÑ  Ñâ âÑ  ÑQUESTION€9ÌÝ‚!ÿÿÿë ƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÌÝ‚"ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  ÝÝ‚"ÿÿÿØ ƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÝ‚!ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  Ýó óÝ‚!ÿÿÿ^ ƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÝ‚#ÿÿÿÝÓ  ÓÓK1vè@ ˜ ðH øP¨X °"%ÜÜ‚,Œ ŠXKÓÔ  ÔÔ  ÔÝ  ÝÓÊÓÓ  Ó€€€€€In€January€2000,€Trust€Bank€agreed€to€loan€Bob€$75,000€to€buy€three€trucks€for€his€business.Ð ˆØ ÐBob€told€Trust€Bank€he€was€purchasing€the€trucks€from€Charles.€Both€Bob€and€Charles€wereÏcustomers€of€County€Bank.€To€in‚sure€that€the€funds€it€was€providing€were€used€to€purchase€theÏtrucks€and€that€its€name€would€appear€on€the€truck€title€as€lienholder,€Trust€Bank€issued€a€jointÏcheck€payable€to€Bob€and€Charles€for€$75,000€and€gave€it€to€Bob.€Bob€presented€the€check€toÏCounty€Bank.€Charles€never€endorsed€the€check.€Bob€wrote€his€own€name€and€Charlesðð€name€onÏthe€check€prior€to€taking€it€to€County€Bank.€County€Bank€took€the€check€and€deposited€the€fundsÏinto€Bobððs€account.€County€Bank€then€presented€the€check€to€Trust€Bank,€which€paid€CountyÏBank.ÌÝ‚#ÿÿÿç ƒÝÔ  ÔÔ  ÔÓ*ÜÜ‚,Œ ŠXvèŒX*ÓÓ  ÓÝ  ÝÌÝ‚#ÿÿÿÝÓ  ÓÓK1vè@ ˜ ðH øP¨X °"%ÜÜ‚,Œ ŠXKÓÔ  ÔÔ  ÔÝ  ÝÓ ÓÓ  Ó€€€€€Bob€made€payments€on€the€loan€to€Trust€Bank€each€month.€In€July€2000€when€Bob€went€intoÏbankruptcy,€Trust€Bank€learned€it€was€not€a€lienhold‚er€on€the€three€trucks€owned€by€Bob€and€thatÏCharles€had€never€received€the€$75,000.ÌÓ¤Óà – àÌÝ‚#ÿÿÿ ƒÝÔ  ÔÔ  ÔÓ*ÜÜ‚,Œ ŠXvèŒX*ÓÓ  ÓÝ  ÝÝ‚$ÿÿÿÝÓ  ÓÓK1 @ ˜ ðH øP¨X °"%ÜÜ‚,Œ ŠXKÓÔ  ÔÔ  ÔÝ  ÝÓÊÓÓN1Âè@ ˜ ðH øP¨X °"% @ ‹XNÓà0 â àò ò(a)€What€crimesòò€óóhas€Bob€committed?€Explain€briefly.Дä â(#â(# ÐÌÝ‚$ÿÿÿ%ƒÝÔ  ÔÔ  ÔÓ*ÜÜ‚,Œ ŠXÂèŒX*ÓÓ  ÓÝ  ÝÝ‚%ÿÿÿÝÓ  ÓÓK1“è@ ˜ ðH øP¨X °"%ÜÜ‚,Œ ŠXKÓÔ  ÔÔ  ÔÝ  ÝÓâÓà ³ à€(b)€What€rights€does€Trust€Bank€have€against€County€Bank€to€re‚cover€its€loss?òò€óóExplainÐ l¼ Ðfully.ó óÐ Nž ÐÝ‚%ÿÿÿäƒÝÔ  ÔÔ  ÔÓ*ÜÜ‚,Œ ŠX“èŒX*ÓÓ  ÓÝ  ÝÓâÓÓH.è@ ˜ ðH øP¨X °"%ÜÜ‚,Œ ŠXHÓÓ  ÓÝ‚!ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  ÝÝ‚!ÿÿÿëÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÌÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÔ  ÔÔ  ÔòòÝ  ÝÔ  Ôò òóóREPRESENTATIVE€ANSWER€1Ô ÀÔó óÐ l МÝ‚ÿressaÝñøñó óñøñÔ  ÔÔ  ÔÔ'Ø‚ÔÓ  Óñøñó óñøññöñó óñöññðñó óó óó óñðñÝ  Ý›ÌÓßÓ€€€€€(a)€€Bob€has€committed€the€crime€of€false€pretenses,€forgery€and€uttering.€€First,€he€is€guilty€ofÏfalse€pretenses€because€he€made€a€material€representation€of€a€present€fact€which€induced€Ïreliance€in€order€to€gain€title€to€property€of€another.€€Indeed,€Bob€claimed€that€he€needed€$75,000Ïbecause€he€was€buying€three€trucks€for€his€business€€that€he€was€purchasing€from€Charles.€ÏRelying€on€the€information€and€reasonably,€Trust€Bank€gave€the€money€to€Bob.€€However,€itÏdoesnððt€appear€that€Bob€purchased€the€trucks€and€he€did€gain€title€to€the€trucks.€€Thus,€falseÏpretenses.ÌÌ€€€€€He€is€also€guilty€of€forgery€because€he€signed€someone€elseððs€name€to€a€legal€documentÏhaving€consequences.€€Here€the€check€issued€by€Trust€Bank€was€jointly€payable€to€Bob€andÏCharles.€€In€order€to€cash€the€check,€Bob€endorsed€his€name€and€Charlesðð€name€on€the€checkÏprior€to€cashing€it.€€Thus,€he€forged€Charlesðð€name€on€the€check.€€ÌÌ€€€€€He€is€also€guilty€of€uttering€a€forged€document.€€After€he€fraudulently€signed€Charlesðð€nameÏon€the€check,€he€presented€the€check€to€County€Bank€to€be€cashed.€€At€the€time€of€presentment€toÏCounty€Bank€of€a€forged€document,€Bob€committed€an€uttering.€ÌÌÝ‚ÿÿÿÝÔ& ì ÔÓ  ÓÔ  ÔÔ  ÔòòÝ  ÝœóóÝ‚ÿgessaÝñøñó óñøñÔ  ÔÔ  ÔÔ'ì 'wÔÓ  Óñøñó óñøññöñó óñöññðñó óó óó óñðñÝ  Ý›€€€(b)€€Trust€Bank€issued€a€joint€check€to€Bob€and€Charles€for€$75,000€and€gave€it€to€Bob.€€At€thisÐ  'ð"( Ðpoint,€Bob€became€a€holder€of€the€check.€€He€then€took€the€check€and€endorsed€both€his€nameÏand€Charlesðð€name€and€presented€it€to€County€Bank.€€Both€Bob€and€Charles€were€customers€ofÏCounty€Bank€and,€therefore,€their€signature€cards€should€be€on€file.€€County€Bank€had€a€duty€toÏcheck€the€endorsed€names€on€the€check€against€both€of€Bob€and€Charlesðð€signature€cards.€€HadÐ P+ &, ÐCounty€Bank€done€so,€it€would€have€been€on€notice€that€the€endorsement€was€invalid.€€This€is€aÏbreach€of€transfer€warranty€and€County€Bank€had€a€duty€to€discover€it€because€of€the€signatureÏcards.€€Transfer€warranties€€include€that€the€warrantor€is€a€person€entitled€to€enforce€the€item,€thatÏall€signatures€on€the€item€are€authentic€and€authorized,€the€item€has€not€been€altered,€the€item€isÏnot€subject€to€a€defense€of€any€party€that€can€be€asserted€against€a€warrantor,€and€the€warrantorÏhas€no€knowledge€of€any€insolvency€proceeding.ÌÝ‚!ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  ÝÝ‚!ÿÿÿn!ÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÌ€€€€€When€County€Bank€transferred€the€check€to€Trust€Bank€for€payment€on€the€check,€CountyÏBank€gave€these€transfer€warranties.€€Clearly,€County€Bank€was€not€entitled€to€enforce€the€checkÏbecause€of€the€forged€signature€and€the€fact€that€it€should€have€known€that€it€was€a€forgery€andÏCharlesðð€signature€was€not€authentic€and€authorized.€€Additionally,€a€cause€of€action€for€breachÏof€warranty€accrues€when€the€claimant€has€reason€to€know€of€the€breach.€€Trust€Bank€onlyÏlearned€that€there€was€a€breach€upon€Bob€going€into€bankruptcy.€€Therefore,€Trust€Bank€has€30Ïdays€after€this€time€to€confront€the€warrantor€(County€Bank)€with€the€breach€and€may€beÏdischarged€to€the€extent€there€is€any€loss€equal€to€the€amount€suffered€as€a€result€of€the€breach,Ïbut€not€more€than€the€amount€of€the€check€plus€expenses€and€loss€of€interest€incurred€as€a€resultÏof€the€breach.€€Trust€Bank€took€the€check€from€County€Bank€in€good€faith.ÌÌÓ  ÓÝ‚ÿÿÿÝÔ& Ø ÔÓ  ÓÔ  ÔÔ  ÔòòÝ  ÝÔ  Ôò òóóREPRESENTATIVE€ANSWER€2Ô ï%Ôó óÐ H˜ ÐÓ•%Ӝ݂ÿ¡%essaÝñøñó óñøñÔ  ÔÔ  ÔÔ'ØH±%ÔÓ  Óñøñó óñøññöñó óñöññðñó óó óó óñðñÝ  Ý›Ó  ÓÌ€€€€€(a)€€Bob€(B)€has€committed€the€following€crimes:€€forgery,€uttering,€false€statement€and€falseÏpretenses.ÌÌ€€€€€B€is€guilty€of€forgery€because€he€altered€a€written€instrument,€the€loan€check€from€Trust€Bank,Ïwith€an€intent€to€defraud€the€Trust€Bank.€€Hence,€he€received€the€money€under€the€impressionÏthat€he€would€use€it€to€purchase€trucks€from€Charles€(C).€€B€never€purchased€trucks€from€C.€ÏHence,€he€specifically€intended€to€defraud€Trust€Bank.ÌÌ€€€€€B€is€guilty€of€uttering€because€he€possessed€a€written€statement€that€€now€had€been€forged.ÌÌ€€€€€B€is€guilty€of€false€pretenses€because€he€made€a€false€statement€to€the€Trust€Bank,€that€heÏintended€to€use€the€loan€to€buy€Charlesðð€trucks.€€This€intent€to€defraud€allowed€B€to€get€title€€ofÏthe€money€be€needed.ÌÌÓè&ÓÓ  Ó€€€(b)€€Trust€Bank€=€Drawer,€Drawee,€Payor€BankÌ€€€€€€Bob€and€Charles€=€PayeeÌ€€€€€€County€Bank€=€Collections€Bank,€Presenting€BankÌÌ€€€€€Trust€Bank€can€sue€County€Bank€under€Section€4„208€for€breach€of€warranty,€but€only€ifÏCounty€Bank€had€knowledge,€or€should€have€had€knowledge,€that€Charlesðð€signature€was€forged.ÌÌ€€€€€Since€County€Bank€can€also€be€considered€a€collecting€bank,€Trust€could€sue€for€breach€ofÐ |*Ì%) Ðwarranty€under€Section€4„207.€€Specifically,€the€warranty€that€ð ðall€signatures€on€the€item€areÏauthentic€and€authorizedðð€under€Section€4„207(a)(2).ÌÌ€€€€€Under€Section€4„207(c),€Trust€could€recover€the€amount€equal€to€the€loss€suffered€as€a€resultÏof€the€breach.€€However,€pursuant€to€Section€4„207(d)€and€Section€4„207(e),€Trust€must€fileÏwithin€thirty€(30)€days€of€the€date€they€had€reason€to€know€of€the€breach.ÌÓ *ÓÌÌÌÝ‚!ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  Ýò òÝ‚!ÿÿÿ…-ƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÓE1“è@ ˜ ðH øP¨X °"%XEÓòŒòÐ  ü L  ÐQUESTIONóŒóó ó€ñùñò òñùñ10ñùñó óñùñÐ ° ÐÓ  ÓÝ‚&ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  ÝÝ‚&ÿÿÿ·.ƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÝ‚'ÿÿÿÝÓ  ÓÓH.ì@ ˜ ðH øP¨X °"%“èŒXHÓÔ  ÔÔ  ÔÝ  ÝÒì°ÒÓ  ÓÌÝ‚'ÿÿÿ=/ƒÝÔ  ÔÔ  ÔÓ*“èŒXì@ ‹X*ÓÓ  ÓÝ  ÝÒìÒÌÓ  ÓÝ‚(ÿÿÿÝÓ  ÓÓN4h’è@ ˜ ðH øP¨X °"%“èŒXNÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÓÏÓÓN1’è@ ˜ ðH øP¨X °"%h’èŒXNÓ€€€€€Andy€and€Zeke€were€partners€in€A&Z,€a€business€which€was€financially€distressed.€€TheÏcompany€owned€€$250,000€life€insurance€policies€on€both€Andy€and€Zeke.ÌÝ‚(ÿÿÿk0ƒÝÔ  ÔÔ  ÔÓ*“èŒX’èŒX*ÓÓ  ÓÝ  ÝÝ‚)ÿÿÿÝÓ  ÓÓN4dŽè@ ˜ ðH øP¨X °"%“èŒXNÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÓÆÏÓÓN1Žè@ ˜ ðH øP¨X °"%dŽèŒXNÓà Ž àÌ€€€€€Andy€approached€Bert,€a€convicted€felon,€who€worked€as€a€maintenance€man€for€A&ZÏand€told€Bert€he€needed€to€have€Zeke€killed€in€order€to€collect€on€insurance€needed€toÏprevent€the€business€from€closing,€and€asked€if€Bert€knew€anyone€who€would€do€the€job.ÏBert€replied€that€he€would€help€out€Andy.ÌÝ‚)ÿÿÿs2ƒÝÔ  ÔÔ  ÔÓ*“èŒXŽèŒX*ÓÓ  ÓÝ  Ýà “ àÌÝ‚*ÿÿÿÝÓ  ÓÓN4v—è@ ˜ ðH øP¨X °"%“èŒXNÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÓÊÆÓÓN1—è@ ˜ ðH øP¨X °"%v—èŒXNÓ€€€€€Bert€approached€Carl,€whom€he€knew€from€prison,€and€asked€him€if€he€could€do€the€job.ÏCarl€immediately€informed€the€Maryland€State€Police,€but€without€mentioning€Bert.€TheÏpolice€sent€Doug,€an€undercover€officer,€to€meet€Andy.€The€conversation€began€with€DougÏsaying€ð ðI€can€give€you€a€good€price€on€getting€rid€of€a€business€partnerðð.€Andy€replied,€ð ðIÏdonððt€think€I€want€to€go€through€with€thisðð.€Doug€said€ð ðItððs€your€only€way€outðð.€Andy€thenÏagreed€to€pay€Doug€$5,000€to€kill€Zeke.€Doug€told€Andy€he€would€have€to€sup‚ply€the€gun.ÏAndy€went€to€a€gun€store€and,€having€a€license€to€carry€a€hand‚gun,€bought€a€.38€caliberÏrevolver.ÌÝ‚*ÿÿÿ!5ƒÝÔ  ÔÔ  ÔÓ*“èŒX—èŒX*ÓÓ  ÓÝ  Ý€€€€ÌÝ‚*ÿÿÿÝÓ  ÓÓN4v—è@ ˜ ðH øP¨X °"%“èŒXNÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÓN1—è@ ˜ ðH øP¨X °"%v—èŒXNÓ€€€€Bert,€not€having€heard€back€from€Carl,€but€wanting€to€help€out€Andy€and€save€theÏbusiness,€set€fire€to€the€A&Z€warehouse€so€Andy€could€recover€prop‚erty€insuranceÏproceeds.€Bert€was€arrested€and€confessed€all,€and€agreed€to€testify€against€Andy.€ÌÝ‚*ÿÿÿ 9ƒÝÔ  ÔÔ  ÔÓ*“èŒX—èŒX*ÓÓ  ÓÝ  Ý€€€€ÌÝ‚*ÿÿÿÝÓ  ÓÓN4v—è@ ˜ ðH øP¨X °"%“èŒXNÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÓN1—è@ ˜ ðH øP¨X °"%v—èŒXNÓ€€€€Doug€obtained€a€statement€of€charges€from€a€District€Court€commis‚sioner€chargingÏAndy€with€attempted€murder€and€arson,€and€arrested€Andy.ÌÝ‚*ÿÿÿx;ƒÝÔ  ÔÔ  ÔÓ*“èŒX—èŒX*ÓÓ  ÓÝ  Ý€€€€ÌÝ‚)ÿÿÿÝÓ  ÓÓN4dŽè@ ˜ ðH øP¨X °"%“èŒXNÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÓÆÊÓÓN1Žè@ ˜ ðH øP¨X °"%dŽèŒXNÓ€€€€ò òYou€are€the€prosecutor.ó óÐ Zª ÐÝ‚)ÿÿÿd=ƒÝÔ  ÔÔ  ÔÓ*“èŒXŽèŒX*ÓÓ  ÓÝ  Ýà “ àÌÝ‚+ÿÿÿÝÓ  ÓÓN4“—è@ ˜ ðH øP¨X °"%“èŒXNÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÓâÆÓò ò€€€€€Discuss€charges€you€will€propose€to€include€in€an€indictment€of€Andy,€and€anyÐ æ6 Ðanticipated€legal€defenses.ó óÐ È ÐÝ‚+ÿÿÿ ?ƒÝÔ  ÔÔ  ÔÓ-“èŒX“—èŒX-ÓÓ  ÓÝ  ÝÓâÓÓH.è@ ˜ ðH øP¨X °"%“èŒXHÓÝ‚ÿÿÿÝÔ& Ä ÔÓ  ÓÔ  ÔÔ  ÔòòÝ  ÝÓ  ÓóóÌÔ  Ôò òÓ  ÓREPRESENTATIVE€ANSWER€1Ô yAÔó óÐ –æ  ÐÝ‚ÿAthe€Ýñùñó óñùñÔ  ÔÔ  ÔÔ'Ī+AÔÓ  Óñùñó óó óñùññøñó óó óó óñøññöñó óó óñöññðñó óó óó óñðñÝ  ÝÓ  ÓÌÓ  Ó€€€€€Andy€and€Bert€are€guilty€of€conspiracy€to€commit€murder.€€Conspiracy€requires€theÏagreement€between€two€or€more€persons€to€complete€an€unlawful€objective.€€Carl€is€notÏguilty€of€conspiracy€because€he€never€agreed€to€Bertððs€proposal€for€assistance.ÌÓBÓÌÝ‚!ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  ÝÝ‚!ÿÿÿ¬CƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÓ  Ó€€€€€Andy€is€also€guilty€of€attempted€murder€of€Zeke.€€Attempted€murder€is€a€specific€intentÏcrime€that€requires€a€ð ðsubstantial€step.ðð€Agreeing€to€pay€Doug€$5,000.00€to€kill€Zeke€andÏbuying€a€gun€constitutes€a€substantial€step.€€The€defense€will€argue€that€Andy€wasÏentrapped€by€Doug,€a€police€officer.€€Doug€said€ð ðthis€is€your€only€way€outðð,€thusÏencouraging€Andy€to€commit€this€crime.€€However,€this€effort€on€the€part€of€the€defenseÏwill€likely€fail€because€Andy€was€ð ðpredisposedðð€to€killing€Zeke.ÌÌ€€€€€Andy€is€also€guilty€of€solicitation€when€he€agreed€to€pay€Doug€$5,000€to€kill€Zeke.€€ItÐ ’*â%- Ðdoes€not€matter€that€Doug€was€an€undercover€cop.ÌÌ€€€€€Andy€is€also€guilty€of€arson€if€the€prosecution€can€prove€that€it€was€a€foreseeableÏconsequence€of€the€conspiracy€between€Andy€and€Bert€that€Bert€would€burn€down€theÏwarehouse.€€The€reason€why€Bert€burned€down€the€warehouse€was€to€get€the€insuranceÏproceeds.€€This€was€the€objective€of€the€original€conspiracy€to€kill€Zeke.€€The€defense€willÏargue€that€this€was€not€foreseeable.ÌÌ€€€€€In€Maryland,€there€are€several€degrees€of€arson.€€This€arson€would€not€be€consideredÏfirst€degree€because€it€did€not€occur€at€a€dwelling.€€It€would€likely€be€third€degree€arsonÏbecause€it€was€a€warehouse€where€people€are€not€likely€to€be.€€It€may€also€be€arson€€by€wayÏof€defrauding€the€insurance€carrier.ÌÓ2DÓÌÝ‚ÿÿÿÝÔ& Ü ÔÓ  ÓÔ  ÔÔ  ÔòòÝ  ÝÔ  Ôò òóóREPRESENTATIVE€ANSWERÔ JÔó ó€2Ð ¬ü  МÝ‚ÿ²Ithe€Ýñùñó óñùñÔ  ÔÔ  ÔÔ'ܬÂIÔÓ  Óñùñó óñùññøñó óó óó óó óñøññöñó óñöññðñó óó óó óñðñÝ  Ý›ÌÓ  Ó€€€€€ò ò1.€€Conspiracy€to€commit€murder.ó óÐ ˆØ  ÐÝ‚ ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  ÝÓ  ÓÌ€€€€€Andy€approached€Bert€and€solicited€him€to€help€him€kill€Zeke.€€Bert€replied€he€wouldÏhelp€out€Andy,€thereby€constituting€an€agreement€between€two€persons€to€commit€an€illegalÏact€(murder).€€The€solicitation€merged€into€the€greater€offense€of€conspiracy€when€theÏagreement€was€made.ÌÝ‚ ÿÿÿLKƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÌ€€€€€ò òDefense.ó óÐ P ÐÌ€€€€€Andy€may€claim€that€no€avert€act€in€furtherance€of€the€agreement€occurred€and€thusÏthere€was€no€conspiracy.€€In€Maryland,€the€avert€act€is€the€agreement,€thus€this€defense€willÏnot€work.€€There€is€no€conspiracy€with€the€police€officer€because€there€was€no€agreementÏbetween€two€persons.€€Only€Andy€agreed€to€the€agreement.ÌÌ€€€€€ò ò2.à è àSolicitation€of€murder.ó óÐ xÈ ÐÌ€€€€€Andy€agreed€with€the€police€officer€to€have€him€kill€Zeke€for€$5,000.€Andy€agreed€toÏthe€payment€and€bought€the€gun.€€Because€only€Andy€agreed€to€the€plan€and€the€policeÏofficer€lacked€the€requisite€intent€to€conspire,€there€is€no€conspiracy.€€Thus,€the€solicitationÏdoes€òònotóó€merge€into€the€conspiracy€because€there€is€no€conspiracy.Ð $h" ÐÌ€€€€€ò òDefense.ó óÐ ð%@!$ Ðà è àÌ€€€€€Andy€will€assert€the€defense€of€entrapment.€€The€police€officer€approached€Andy,€madeÏthe€offer€and€after€Andy€said€he€ð ðdidnððt€think€he€could€go€through€with€itðð,€the€policeÏofficer€convinced€Andy€to€agree€to€the€plan.€€However,€if€Andy€had€a€predisposition€toÏcommit€the€crime,€there€is€no€entrapment.€€Andy€had€already€solicited€Bert€to€kill€Zeke,Ð *à%) Ðevidencing€Andyððs€predisposition€to€the€crime.ÌÌ€€€€€ò ò3.€€Arson.ó óÐ ˆØ ÐÌ€€€€€As€a€co„conspirator€with€Bert€to€kill€Zeke,€Andy€is€liable€for€the€actions€of€his€co„¼conspirator€committed€in€furtherance€of€the€conspiracy.€€Bert€set€fire€to€the€warehouse€inÏorder€to€help€out€Andy.€€Thus,€Bertððs€arson€of€the€warehouse€was€an€act€in€furtherance€ofÏthe€conspiracy€and€Andy€is€liable€for€it€under€co„conspirator€liability.ÌñîñÌñîñÌ€€€€€ò òDefense.ó óÐ  P  ÐÌ€€€€€Bertððs€arson€was€not€a€reasonably€foreseeable€act€in€furtherance€of€the€conspiracy.€€TheÏconspiracy€was€to€kill€Zeke€to€collect€insurance€money€on€Zeke.€€Instead,€Bert€withoutÏconsulting€Andy,€set€fire€to€the€warehouse€to€collect€property€insurance€proceeds.€€There€isÏno€evidence€to€suggest€Zeke€was€in€the€warehouse€when€the€fire€was€set.ÌÌÝ‚!ÿÿÿÝÓ  ÓÔ  ÔÔ  ÔÝ  ÝÝ‚!ÿÿÿ‡SƒÝÔ  ÔÔ  ÔÓ  ÓÝ  ÝÌ€€€€€ò ò4.€€Attempted€murder€òòwill€not€beóó€included€in€the€indictment€of€Andy.ó óÐ d´ ÐÌ€€€€€In€order€to€be€guilty€of€attempted€murder,€Andy€or€a€co„conspirator€must€have€takenÏsubstantial€steps€towards€committing€murder.€€Although€Andy€bought€a€gun,€that€does€notÏconstitute€a€substantial€enough€step€towards€the€murder€of€Zeke.€€In€addition,€there€is€noÏevidence€that€Zeke€was€in€the€warehouse€when€the€fire€was€set€or€the€intention€of€killingÏZeke€by€burning€the€warehouse.€€Thus,€Andy€is€not€guilty€of€attempted€murder€via€arson€orÏthe€purchase€of€the€gun.€€Therefore,€I€will€omit€this€offense€from€the€indictment.ÌÌÌò òÔ‡,XšØ XXXÔ ÔÓ  ÓñïñÐ   ð ÐñïñQUESTION€11ó óÐ ° ÐÓ°VÓÌ€€€€€Angie€and€Bert,€residents€of€Howard€County,€Maryland,€planned€to€get€married€onÏFebruary€10,€1998.€€In€anticipation€of€the€marriage,€Angieððs€parents€wanted€to€convey€twoÏparcels€of€real€estate€to€Angie€and€Bert.€€On€January€1,€1998,€the€parents€executed€the€firstÏdeed€to€Angie€and€Bert€as€tenants€by€the€entireties.€€Angie€and€Bert€married€as€planned€andÏrecorded€their€deed€the€next€day.ÌÌ€€€€€On€March€20,€1998,€Angieððs€parents€executed€a€second€deed€to€Angie€and€BertÏconveying€to€them€as€tenants€by€the€entireties,€a€lot€in€a€subdivision€adjacent€to€the€parcelÏpreviously€conveyed.€€It€was€described€in€the€deed€as€ð ðð8ðconsisting€of€6€acres,€more€orÏless,€and€known€as€Lot€10€of€Melrose€Subdivision,€the€same€being€one€acre,€all€as€shownÏon€Plat€200€recorded€among€the€Land€Records€of€Howard€County,€Marylandðð.€€TheÏdescription€for€Lot€10€on€Plat€200€described€Lot€10€as€one€acre.€€The€deed€was€properlyÏexecuted€and€recorded.ÌÌ€€€€€Angie€and€Bert€had€a€stormy€marriage€largely€because€of€many€things€Bert€ð ðforgotðð€toÏmention€to€Angie€prior€to€the€marriage€ceremony.€€One€of€the€things€he€forgot€to€mentionÏis€a€Judgment€in€the€amount€of€$75,000€against€Bert€in€favor€of€J.€Creditor€which€wasÏproperly€recorded€in€the€Clerkððs€Office€for€Howard€County,€on€July€1,€1997.€€Revelation€ofÏthe€Judgment€was€the€last€straw€for€Angie.€€They€are€legally€divorced€on€September€20,Ï2000.€€On€September€25,€2000,€Bert€conveys€both€parcels€to€Angie€and,€distraught€over€theÏdivorce,€he€moves€to€China€for€a€fresh€start.ÌÌ€€€€€ò òA.€€What€issues€are€raised€regarding€the€deeds?Ð Ð  ÐÌ€€€€€B.€€€Does€Angie€have€a€potential€problem€with€J.€Creditor?€€€€Explain.ó óÐ ¬ü ÐÌà è àà @ àÌò òÓ  ÓREPRESENTATIVE€ANSWER€1ó óÐ pÀ ÐÓà]Óà è àà @ àÌ€€€€€ò òA.€€Issues€raised€regarding€the€deeds.ó óÐ H!˜ Ðà è àà @ àÌ€€€€€1)€€Angieððs€parents€conveyed€two€parcels€of€real€estate€to€Angie€and€Bert€on€January€1,Ï1998.€€The€executed€deed€stated,€to€Angie€and€Bert€as€tenants€by€the€entireties.€€Tenancy€byÏthe€entireties€can€only€be€established€if€the€two€people€are€married€when€the€deed€isÏexecuted.€€Bert€and€Angie€are€not€married€until€February€of€1998.€€Therefore,€tenancy€byÏthe€entirety€was€not€established€when€the€deed€was€executed€by€Angieððs€parents.€€TheÏproperty€will€likely€be€held€as€joint€tenants€with€the€right€of€survivorship€between€AngieÏand€Bert.€€This€is€because€they€took€the€property€at€the€same€time,€there€was€a€unity€of€title,Ïthey€both€had€an€interest€in€the€property€and€they€both€take€possession€at€the€same€time.€€ItÏis€important€to€note€that€just€because€Angie€and€Bert€recorded€the€deed€after€they€wereÐ „*Ô%) Ðmarried,€a€tenancy€by€the€entirety€was€not€established.€€The€relevant€date€is€when€the€deedÏwas€executed€which€€was€before€they€were€married.Ìà è àà @ àÌ€€€€€2)€€Angieððs€parents€executed€a€second€deed€on€March€20,€1998€to€Angie€and€Bert€asÏtenants€by€the€entireties.€€The€deed,€as€described,€stated€that€the€land€conveyed€consisted€ofÏð ð6€acres,€more€or€less,€and€known€as€Lot€10€of€Melrose€Subdivision,€the€same€being€1€acre,Ïall€as€shown€on€Plat€200€recorded€among€the€Land€Records€of€Howard€County,€Maryland.ðð€ÏDespite€the€inconsistency€between€the€executed€deed€and€the€Land€Records,€it€seems€thatÏAngieððs€parents€have€conveyed€whatever€interest€they€may€have€in€Lot€10€on€Plat€200.€ÏThey€have€sufficiently€described€the€land€by€mentioning€the€specific€lot€and€plat.€€AngieÏand€Bert€may€need€to€check€back€in€the€Land€Records€to€find€out€the€exact€amount€of€landÏthat€Angieððs€parents€have€€conveyed€to€them.€€This€should€clear€up€the€discrepancyÏbetween€the€deed€stating€that€there€are€6€acres€and€the€Land€Records€stating€that€there€isÏonly€1€acre.Ìà è àà @ àÌ€€€€€This€land€has€been€conveyed€to€Angie€and€Bert€as€tenants€by€the€entireties.€€BecauseÏthey€are€now€married€such€grant€is€valid.Ìà è àà @ àÌ€€€€€B.€€Angie€does€have€a€potential€problem€with€the€creditor.€€The€creditor€properlyÏrecorded€in€the€Clerkððs€Office€for€Howard€County€a€Judgment€in€the€amount€of€$75,000Ïagainst€Bert€on€July€1,€1997.€€This€Judgment€attaches€to€any€property€that€Bert€has€on€orÏafter€this€date€until€the€Judgment€is€fulfilled.Ìà è àà @ àÌ€€€€€The€first€deed€executed€by€Angieððs€parents€to€Angie€and€Bert€was€unsuccessful€as€beingÏgranted€to€them€as€tenants€by€the€entireties.€€As€stated€above,€this€grant€will€most€likely€beÏseen€as€joint€tenants€with€the€right€of€survivorship.€€Both€Bert€and€Angie€will€have€anÏundivided€one„half€interest€in€this€property.€€Bertððs€undivided€half€is€subject€to€theÏcreditorððs€Judgment.€€This€will€sever€the€joint€tenancy€between€Bert€and€Angie€and€theÏproperty€will€now€be€held€between€them€as€tenants€in€common.Ìà è àà @ àÌ€€€€€The€second€deed€executed€by€Angieððs€parents€to€Bert€and€Angie€was€conveyed€to€themÏas€tenants€by€the€entireties.€€As€such,€no€creditor€will€be€able€to€attach€a€Judgment€or€lienÏagainst€this€property€because€it€receives€special€protection.€€Therefore,€the€creditor€may€notÏattach€his€Judgment€against€this€€property€so€long€as€the€marriage€remains€intact.€€OnÏSeptember€20,€2000,€Bert€and€Angie€were€legally€divorced€and€the€tenancy€by€the€entiretiesÏwas€severed.€€At€this€point,€the€creditor€could€attach€his€judgment€to€Bertððs€undivided€one„¼half€interest€in€the€property€if€the€first€property€did€not€successfully€alleviate€the€Judgment.€ÏThe€fact€that€Bert€conveyed€his€interest€in€the€parcels€to€Angie€on€September€25,€2000,Ïonly€means€that€Angie€takes€that€property€subject€to€the€creditorððs€Judgment.Ìâ âà è àà @ àÐ ¤(ô#' Ðò òÓ  ÓñòñÔ  Ôâ âñòññòññññÔ  ÔññññòñREPRESENTATIVE€ANSWER€2ó óÐ ° Ðà @è àà @@ àÌò òÓ  ÓParcel€conveyed€on€January€1,€1998€(Parcel€1)ó óÐ ˆØ Ðà è àà @ àÌ€€€€€In€order€to€create€a€tenancy€by€the€entirety,€there€must€be€five€unities€that€are€met.€€UnityÏof€time:€€The€tenants€must€receive€the€interest€at€the€same€time,€here€A€and€B€both€got€theÏinterest€on€same€date.€€Unity€of€Title:€€The€tenants€must€take€by€the€same€instrument€„€hereÏAngieððs€parents€conveyed€the€instrument€by€the€same€deed€to€both€A€and€B.€€Unity€ofÏInterest:€€Both€tenants€must€take€some€interest.€€Here€A€and€B€took€as€tenants€by€theÏentirety.€€Unity€of€Possession:€€€An€and€B€were€able€to€take€the€parcel€together€and€bothÏpossess€it€at€the€same€time.€€Unity€of€Marriage:€Not€present€here€because€they€were€notÏmarried€at€the€time€of€the€conveyance€as€tenants€by€the€entireties€(T/E).ÌHowever,€if€the€parties€are€not€married€and€the€property€is€conveyed€as€T/E,€there€is€aÏpresumption€that€it€becomes€a€joint€tenancy.€€Therefore€A€and€B€owned€Parcel€1€as€jointÏtenants€with€the€right€of€survivorship.Ìà è àà @ àÌò òParcel€conveyed€on€March€20,€1998€€(Parcel€2)ó óÐ pÀ Ðà è àà @ àÌ€€€€€A€and€B€are€married€at€this€time€and€so€they€would€hold€the€property€as€tenants€by€theÏentireties,€each€with€the€right€of€survivorship.€€However,€there€is€an€ambiguity€in€theÏdescription€of€the€property.€€It€says€that€it€is€consisting€of€6€acres,€more€or€less.€€However,Ïthe€deed€then€goes€on€to€say€that€it€is€known€as€Lot€10€and€that€it€is€only€1€acre.€€BecauseÏthe€second€description€makes€a€reference€to€the€plat,€it€would€probably€prevail€and€theyÏwould€own€as€T/E€one€acre€of€land.Ìñóñà è àÌñóñà è àÌò òAngieððs€potential€problem€with€J.€/Creditor.ó óÐ ¼  Ðà è àà @ àÌ€€€€€The€property€that€A€and€B€received€from€Angieððs€parents€was€held€by€A€and€B€as€jointÏtenants.€€However,€Bert€has€a€prior€judgment€of€$75,000€against€him€in€favor€of€J.€ñ÷ñCrditorñ÷ññ÷ñCreditorñ÷ñÏon€July€1,€1997.€€This€judgment€attached€to€Bertððs€interest€in€the€property€(€parcel€1)€whenÏhe€received€it€from€Angieððs€parents€on€January€1,€1998.€€This€severed€the€joint€tenancy€andÏcreated€a€tenancy€in€common.€€When€Bert€conveys€his€interest€in€the€property€to€(ParcelÏ1)Angie,€she€would€take€it€subject€to€J.€Creditorððs€Judgment.€Ìà è àà @ àÌò òParcel€2:ó óÐ $X" Ðà è àà @ àÌ€€€€€J.€Creditorððs€Judgment€could€not€attach€to€Parcel€2€while€A€and€B€owned€it€as€tenantsÏby€the€entirety.€€However,€once€they€were€legally€divorced€on€September€20,€2000,€thisÏsevered€the€T/E.€creating€a€tenancy€in€common.€€Once€the€tenancy€in€common€was€createdÏon€September€20,€2000,€J.€Creditorððs€Judgment€attached€to€Bertððs€interest€in€Parcel€2€andÏwhen€Bert€conveyed€Parcel€2€on€September€25,€2000,€Angie€took€Parcel€2€subject€to€J.ÏCreditorððs€Judgment.€€Ð |*Ì%) ÐÓSnÓÓ  Óñôñà è àñôñÔ#†XÔ X X,XšØ‘V#ÔñôñÌñôñÔ‡,XšØ XXXÔ ÔñôñÌñôñò òÓ  ÓQUESTION€12Ð ° Ðñòñó óñòñÓGzÓñòñò òñòñÓ  Óó óñõñÌñõñÓzÓÌ€€€€€Beacon€Distribution,€Inc.,€a€Maryland€corporation,€purchased€all€of€the€assets€of€SampoÏSuppliers,€Inc.,€an€importer€and€distributor€of€medical€diagnostic€equipment€in€the€UnitedÏStates,€with€its€principal€office€in€Harford€County,€MarylandÌà è àà @ àÌ€€€€€The€contract€provided,€Ô  Ôòòinter€aliaóóÔ  Ô,€that€Beacon€assumed€ð ðall€of€the€rights€and€liabilitiesÐ 8 ˆ Ðof€Sampo€with€respect€to€unfilled€orders€for€the€purchase€of€equipment€contracted€to€beÏsold€by€Sampoðð.Ìà è àà @ àÌ€€€€€Susan€had€been€a€salesperson€for€Sampo€and€had€procured€substantial€orders€for€SampoÏwhich,€at€the€time€of€the€sale€to€Beacon,€were€in€the€process€of€being€shipped€and/or€billed.€ÏHer€compensation€arrangement€with€Sampo€during€the€years€of€her€employment,€althoughÏnot€in€written€form,€provided€for€a€10%€commission€on€each€order€she€obtained.Ìà è àà @ àÌ€€€€€Along€with€other€employees,€Susan€lost€her€job€when€Sampo€transferred€its€assets€toÏBeacon.€€She€submitted€a€claim€to€Beacon€for€$40,000,€representing€her€10%€commissionÏon€the€orders€she€procured€while€employed€by€Sampo.€€Susan€was€not€a€party€to€theÏBeacon„Sampo€contract.€€She€was€not€mentioned€in€the€contract€and€did€not€contribute€anyÏconsideration€to€it.€€For€these€reasons,€Beacon€refused€payment.Ìà è àà @ àÌ€€€€€ò òWhat€right€of€recovery€does€Susan€have€against€Sampo€and,€or€Beacon,€if€any?€Ð  \ ÐExplain€fully.ó óÐ üL Ðò òñöñÌñöñà è àà @ àÌÓ  ÓREPRESENTATIVE€ANSWER€1ó óÐ Ô$ ÐÓЀÓà è àà @ àÌ€€€€€€€€This€question€involves€issues€of€contract€law,€therefore,€the€Maryland€common€law€ofÏcontracts€will€apply.€€This€does€not€involve€the€sale€of€goods,€therefore,€the€UCC€does€notÏapply.Ìà è àà @ àÌ€€€€€€€€A€contract€is€formed€when€there€is€an€offer,€acceptance€and€valuable€consideration.ÏHere,€Beacon€&€Sampo€contracted€to€assume€all€the€rights€and€liabilities€of€Sampo€withÏregard€to€unfilled€orders,€and€the€terms€of€the€contract€did€not€include€Susan€€as€a€party.€€Ìà è àà @ àÌ€€€€€€€€However,€Susan€had€an€oral€contract€with€Sampo,€as€a€salesperson,€whereby€herÏcompensation€arrangement€provided€for€10%€commission€of€each€order€she€obtainedÏduring€the€years€of€her€employment.Ìà è àà @ àÌ€€€€€€€€A€breach€by€Sampo€occurred€when€Susan€lost€her€job€during€the€transfer€of€assets€toÏBeacon€by€Sampo.€€Ìà è àà @ àÌ€€€€€€€€A€third€party€beneficiary€can€enforce€rights€under€a€contract€if€the€third€party€hasÐ €*Ð%) Ðknowledge€of€the€contract€and€is€intended€to€be€paid€under€the€contract€even€if€she€is€not€aÏparty€to€the€contract.€€Here,€Beaconððs€ð ðassuming€all€rights€and€liabilities€of€Sampoðð€couldÏreasonably€include€the€payment€of€employees€making€the€unfilled€orders€for€the€purchaseÏof€equipment.€€It€would€be€equitably€unfair€for€Sampo€to€assign€its€rights€to€a€third€partyÏwithout€fully€paying€its€own€employees€from€its€assets.€€Here,€Susan€submitted€a€claim€toÏBeacon€for€$50,000€representing€her€10%€commission€while€employed€by€Sampo.Ìà è àà @ àÌ€€€€€€€€As€a€third€party€intended€beneficiary,€Susan€has€a€cause€of€action€against€Sampo,Ïalthough€insolvent,€for€her€employment€commission€because€of€privity€of€contract€betweenÏthe€two€and€she€has€a€cause€of€action€against€Beacon€as€a€third€party€intended€beneficiaryÏunder€the€ð ðassumableðð€Beacon„Sampo€contract.€€She€may€have€a€statute€of€frauds€problemÏthat€needs€to€be€addressed.Ìà è àà @ àÌÌÌÌò òÓ  ÓREPRESENTATIVE€ANSWER€2ó óÐ pÀ Ðà @è àà @@ àÌò òÓ  ÓThird€Party€Beneficiariesó óÐ H˜ Ðà è àà @ àÌ€€€€€Nonparties€to€a€contract€may€have€rights€or€duties€in€connection€with€the€contract.€€Ìà è àà @ àÌ€€€€€Here€we€have€a€contract€between€Beacon€and€Sampo.€€Beacon€purchased€all€of€theÏassets€of€Sampo€Suppliers.€€The€contract€provided€that€Beacon€assume€all€of€the€rights€andÏliabilities€of€Sampo.€€Susan€was€not€a€party€to€the€Beacon„Sampo€contract€and€she€was€notÏmentioned€in€the€contract.€€Ìà è àà @ àÌ€€€€€There€are€two€types€of€third€party€beneficiaries,€creditors€and€donee€beneficiaries.€ÏSusan€is€a€creditor€beneficiary€because€she€is€owed€the€10%€commission€on€each€order€sheÏobtained€„€prior€debt€owed€to€her€by€Sampo.€A€third€party€beneficiary€does€not€haveÏcontractual€rights.€€Susan€may€vest€her€rights€in€the€contract€by€bringing€suit€against€SampoÏor€Beacon.€€Susan€has€a€previous€relationship€with€Sampo€because€she€was€employed€byÏSampo.€€ÌÌ€€€€€Here€Beacon€assumed€all€rights€and€liabilities€of€Sampo€with€respect€to€unfilled€ordersÏfor€the€purchase€of€equipment€contracted€to€be€sold€by€Sampo.€€Beacon€will€have€to€payÏSusan€because€Susan€had€been€a€salesperson€for€Sampo€and€had€€procured€substantialÏorders€for€Sampo€which€at€the€time€of€the€sale€to€Beacon€were€in€the€process€of€beingÏshipped€and/or€billed€unfilled€orders.€€Beacon€assumed€all€of€the€rights€and€liabilities€ofÏSampo€with€respect€to€unfilled€orders€for€the€purchase€of€equipment.€Ìà è àà @ àÌ€€€€€Susan€is€qualified€as€a€third€party€beneficiary€because€of€her€previous€relationship€as€anÐ |*Ì%) Ðemployee€with€Sampo.€€Sampo€owed€her€so€she€is€a€creditor€beneficiary.€€Susan€mayÏchoose€to€sue€Sampo€or€Beacon€but€she€is€only€entitled€to€one€recovery.€€I€would€suggestÏthat€Susan€sue€Beacon€because€of€the€assumption€on€unfilled€orders€on€the€contract.Ìà è àà @ àÌ€€€€€Beacon€will€try€to€defend€by€stating€that€Susan€was€not€a€party€to€the€contracts,€she€wasÏnot€mentioned€in€the€contract€and€did€not€contribute€any€consideration€to€it.€€€Those€factsÏdo€not€help€Beacon€because€Susan€is€a€third€party€beneficiary.€€Ìà è àà @ àÌ€€€€€Susan€may€sue€Sampo€as€well€because€of€the€compensation€agreement€with€SampoÏduring€the€ten€years€of€employment.€€Sampo€will€defend€by€stating€that€the€10%Ïcommission€on€each€order€she€obtained€was€not€in€writing.€€Ìà è àà @ àÌ€€€€€Susan€should€sue€Beacon€because€he€assumed€liability,€therefore,€he€could€not€use€anyÏdefense€that€Sampo€had,€such€as€the€defense€of€the€compensation€agreement€not€being€inÏwriting.€€Ìà è àà @ àÌ€€€€€Susan€has€right€of€recovery€as€third€party€beneficiary.€Ìà è àà @ àÌÌÌÔ#†XÔ X X,XšØz#ÔÓE‰Ó