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S:\  `&Times New RomanS    ? 7)  _ @  @  @  XX  ! !X!! @ $ !!$XX   !  #XXXXL#:XXXX Page  29  #XXX:X_#"  :XXXXԀof"7    34     !USUS.,  _   5#$%&'()*+(03<X;:XXXX   FEBRUARY2007MARYLANDBAREXAMINATION  QUESTIONSANDREPRESENTATIVEGOODANSWERS  QUESTION1 `  󀀀WinsomeWaysisaboutiqueinNewMarket,Marylandthatsellsvariousaccessoriesfor 8  women.AmyBrownisthesoleownerandhastwoemployees,JackandConnie.Beforeleaving $ t foralongvacation,Amysendsaformlettertohersuppliersstatingthatwhilesheisawayon  ` vacationConniewillmanagethestoreandsignanyrequiredpaperworkonbehalfofthe  L  business.Onthedaybeforeherdeparture,AmyinstructsConniethatConniewillmanagethe  8  storewhileAmyisawayandsignpaperworkforthebusinessbutthatshemaynotpurchaseany $  newlinesofmerchandisefromthesuppliersoranyothersellerofmerchandise.     Aweekintoactingasmanager,asalespersonfromJewels,aregularsupplier,convinces   Connietopurchasealineofjeweledeyeglasscases.Conniesignsanagreementtopurchasefive   oftheeyeglasscases,andsheagreestopurchasefiveeyeglasscaseseachmonthduringthenext p twelvemonths. \     ThefollowingdayJackisworkingatWinsomeWaysalonewhileConnietakesalunch 4 break.Asalesman,whoworksforTeapots,aregularsupplierofteapots,convincesJacktosign  p acontractcommittingWinsomeWaystothepurchaseofanumberofexpensivechinateapots  \ togetherwithatwoyearcontractforWinsomeWaystopurchasethesametypeandnumberof H potseverythreemonths. 4   Amyreturnsfromhervacationandlearnsofthenewcontracts.ShecallsJewelsandtells   themtopickuptheeyeglasscasesandshecallsTeapotsandtellsthemnottodeliveranyteapots,  asshewillnotacceptthem.BothJewelsandTeapotstellherthatthecontractshadbeenentered  intowithWinsomeWaysandshewillbeheldresponsible.    Amycomestoyou,aMarylandlawyer,toobtainadviceonwhethershehasany X  liabilitytoJewelsandTeapots.Whatadvicewouldyougivetoherandwhy? D!     REPRESENTATIVEANSWER1 $X"     AmyismostlikelyliabletoJewels,butsheisnotliabletoTeapots. %0!$ #XXX:X#:XXXX 8,-./01234(005#$%&'()*+","  X9%4 4 <DLX9   X<( 4 <DL44X<,~ 2  1  .3      #XXX:X #:XXXXJewels,~ | ݌ '#& Ќ  XX     AmydidnotratifythecontractwithJewelstopurchasetheeyeglasscases(sheeven )$( askedJewelstopickupthecasesalreadydelivered),soherliabilitywillturnonwhetherConnie |*%) hadtheauthoritytoenterintothecontract.Conniedidnothaveexpressauthority.Infact,Amy h+&* hadspecificallyforbiddenConniefrompurchasinganynewlinesofmerchandisefromsuppliers  whileAmywasgone.TherewasalsonoimpliedauthoritybecauseConnieisamereemployeeof  WinsomeWaysandthereisnoevidencethatshehadeverboughtmerchandiseforthestore  before.Thereis,however,agoodcaseforapparentauthority.Amysentalettertoallregular t suppliers(andJewelsisaregularsupplier)sayingthatwhileshewasgone,Conniewillmanage ` thestoreandsigntherequiredpaperwork.ShedidnotnoteinherletterthatConniewas L  forbiddenfrombuyingnewmerchandise.Jewelsthereforereasonablyreliedonthisletterwhenit 8  assumedthatConniehadtheauthoritytopurchasetheeyeglasscases.Amymightconsider $ t bringinganactionagainstConnieforabreachofagencyrelationshipasConniewasexpressly  ` forbiddenfromenteringintoanycontractsfornewlinesofmerchandise.Theevidenceseemsto  L  indicatethatjeweledeyeglasscasesareanewlineofmerchandise.Iftheyarenot,thenConnie  8  hadexpressauthorityfromAmytopurchasethecasesandAmyisliable.Amywouldthenhave $  noremediesavailableagainstConnie.     : X:X# : #:  ","  X9%4 4 <DLX9    X<( 4 <DL44X<,2  2  .3      #:XX: ##XXX:X#:XXXXTeapots,݌   Ќ  XX     Again,AmydidnotratifythecontractwithTeapots,soherliabilitywillturnonwhether p Jackhadtheauthoritytoenterintothecontract.Jackhadnoexpressauthorityasthereisno \ evidencethatAmyentrustedJackwithanydutiesotherthanthoseofasalesperson.Thefactthat H AmysentoutaletterspecificallygivingConnietheauthoritytosignforthebusinessalsocuts 4 againstanyfindingofexpressauthorityforJack.Asforimpliedauthority,thereisnoevidence  p supportingtheideathatJackcanbindbycontracteitherAmyorWinsomeWays.Heappearsto  \ beonlyasalesperson,notamanager.Finally,unlikethecasewithConnie,Amyhasdone H nothingtogiverisetoareasonableinferencebyathirdpartythatJackhasauthoritytosign 4 contractsforthebusiness.ShedidnotsendoutaletterlikeshedidwithConnie.Teapotswasa   regularsuppliersotheywouldhavereceivedtheletterfromAmynotingthatonlyConniehadthe   authoritytosignforthebusiness.BecauseTeapotshadnoreasontobelievethatJackhadthe  authoritytoenterthiscontract(andinfactknewtheyshouldhavedealtwithConnie),Amyisnot  liable.IfAmyweresomehowfoundliable,shemightalsoconsideranactionagainstJackfor  breachofagencyrelationshipasthereisnoevidencethatJackhadtheauthoritytoenterintothis l contract. X     REPRESENTATIVEANSWER2 0"  #XXX:X䬼# :XXXX 5#$%&'()*+(008,-./01234/ /"#"  X9%4 4 <DLX9   X<( 4 <DL44X<#C 2  1  .3      #XXX:Xt#:XXXXJewels#C A!݌ $X" Ќ  XX     AmyBrown(A)thesoleownerofWinsomeWays,hastwoemployeesandhasleftfora %0!$ longvacation.Priortoherdeparture,shesentaformlettertohersuppliersstatingthather &"% employee,Connie(C)will managethestoreandsignanyrequiredpaperworkonbehalfofthe '#& business.AhasthereforeformedanagencyrelationshipwithC"Aistheprincipalandhas (#' grantedCtheabilitytoactonherbehalf.AattemptedtolimitthescopeofCsagencyby )$( informingCthatshecouldnotpurchaseanynewlinesofmerchandisefromthesuppliersorany |*%) othersellerofmerchandise.Whileaprincipalmaylimitthescopeoftheagencyrelationship,and h+&* theextentoftheagentspower,tobeeffectiveasagainstthirdparties,thislimitationmustbe  conveyedtothethirdparty.Cdisregardedthislimitationandpurchasedfiveeyeglasscasesand  agreedtocontinuepurchasingfiveeyeglasscaseseachmonth.Thisagreementisbetweena  currentsupplier(onewhopresumablyreceivedtheformlettergrantingCtheauthoritytoacton t Asbehalf)foranewlineofmerchandise"jeweledeyeglasscases.Chasactedoutsideofthe ` scopeofheractualauthoritybypurchasingthenewlineofmerchandise.However,Awillbe L  liabletoJewelsbecauseChasactedwithinthescopeofheragency"asoutlinedinthelettersent 8  toJewels.AslettershouldhavespecificallycarriedtherestrictionthatCcouldnotpurchasenew $ t linesofmerchandisefromanysuppliersorothersellers.  `   : X:X# : !#:  "#"  X9%4 4 <DLX9    X<( 4 <DL44X<#*2  2  .3      #:XX: )##XXX:X)#:XXXXTeapots#*+݌  8  Ќ  XX     AdidnotgiveJack(J)anyauthoritytoactonherbehalfwhileshewasonvacation.   Generally,employeesdonothavetheauthoritytobindthecompanyabsentsomespecialposition   inthecompany(i.e.president,vicepresident,etc.)oragrantofauthority.Jwrongfullypurchased   teapotsandsignedatwoyearcontractcommittingWinsometopurchasethesamenumberand   typeofteapots.Teapots(T)isaregularsupplier,thereforeitreceivedtheformletterandhad p noticethatCwouldberesponsibleforthestorewhileAwasgone.ThadnobasistoaskJto \ enterintoabindingtwoyearcontract.TwillnotbeabletoenforcethiscontractagainstA H becausetherewasnobasisforits beliefthatJcouldactonbehalfofA.Astoteapots 4 purchased,whileagain,evenifJthinkshehasauthoritybutdoesnot"inotherwords,itisnot  p clearthatAorCtoldJhecouldntentercontractsonbehalfofWinsomeorA,however,the  \ supplierknewhecouldnotandthereforecouldnotrelyonanyrepresentationsmadebyJthathe H hadauthority. 4     Astothepurchasedteapots,iftheemployeesregularlypurchasesuchitemsonbehalfof   thestore,thenJmayhaveimpliedauthority,basedonthecourseofconduct,topurchasetheseon  behalfofWinsome.If,asseemsmorelikely,AdoesthepurchasingforWinsome,thenAwillbe  abletoreturntheteapotsalreadypurchasedandwillhavenoliabilityforsuchteapots.     h+&* Ї#XXX:X䬽+#>XXXX  QUESTION2  3   InJanuary2007,enormousundergroundoilreserveswerediscoveredinseveralcounties  ofMarylandsEasternShore.Thereservesweresolargethatvirtuallyovernight,Maryland t becamethewealthieststateinthenation.Inresponsetothisoildiscoveryandthewealthit ` created,theGovernorproposedthefollowinglegislation: L      (a)TheMarylandCurrencyAct.ThisstatutecreatesnewcurrencycalledtheMaryland $ t Dollar( $M)thatwouldbeacceptedastheofficialmonetaryunitfortheStateofMaryland.It  ` alsoprovidedthatUnitedStatescurrencywouldnolongerbeacceptedinfinancialtransactions  L  withinMaryland.Alongstandingfederalstatutestatesthat UnitedStatescoinsandcurrencyare  8  legaltenderforalldebts,publiccharges,taxes,anddues.ThismeansthatallU.S.money,when $  tenderedtoacreditor,legallysatisfiesadebttotheextentoftheamount(facevalue)tendered.       (b)TheOilResidenceAct.Toprotectlocaloilexplorers,thisstatuteimposesresidency   andterritoriallicensingrequirementsonoildrillingandexplorationinMaryland.Thestatute   statesthatonlyindividualresidentsoftheMarylandCountyinwhichthereservesarelocatedcan p obtainanexplorationlicense,andoilexplorationanddrillingislimitedtothecountyforwhich \ thelicensewasissued. H     AsarecentlyadmittedattorneyworkingfortheOfficeoftheAttorneyGeneral,you  p areaskedbytheGovernortogiveyouropiniononthevalidityoftheproposedlegislation.  \ Whatadvicewouldyougive?Explainyourreasons . H    ADDITIONALFACTS $  !<    (c)InvestigatorsfromtheMarylandDepartmentofNaturalResourcesdiscoveredthatthe  DelawareStategovernmentwasengaginginoilexplorationby sidedrillingintotheMaryland  oilfieldsandthensellingthe Marylandoilontheopenmarket.Inresponse,Marylandfilesa  lawsuitagainsttheStateofDelawareintheCircuitCourtforKentCounty,Marylandseeking p injunctivereliefanddamages.Thereliefispromptlygranted.TheStateofDelawarefilesa \  timelyappealtotheMarylandCourtofSpecialAppealsarguingthatMarylandcourtslack H! jurisdictiontohearthedispute. 4"      HowshouldtheMarylandCourtofSpecialAppealsrule?Explainyourreasons.  $\"  d d   REPRESENTATIVEANSWER1 H&!$  @  A) ` ThevalidityoftheMDCurrencyAct(MCA)  (p#&     1)TheConstitutionoftheUnitedStatesexplicitlygivestheFederalGovernmentthe )H%( abilitytocoinandprintmoney.TheMCAisthereforeunconstitutionalforcreatingnew *4&) currencycalltheMarylandDollar.DoingsowouldbeindirectconflictwiththeFederal  Governmentsexclusivepower.NoStatecanindividuallyprintandcoinmoneywithout  interferingwithpreemptionandexpressfederalism.      Whenastatelawandafederallawexpresslyconflict,oraremutuallyexpulsive,orifa ` StatelawattemptstogoverninanareareservedortraditionallycontrolledbytheFederal L  Government,thefederalstatutepreemptstheStatelawandtheFederallawiscontrolling.Here 8  theprovisionoftheMCAwhichprovidesthatMDwillnolongeracceptU.S.currencytofulfill $ t financialtransactionsisunconstitutionalbecauseitisindirectconflictwiththefederalstatute  ` whichstatesthatU.S.currencyislegaltenderforalldebts.Therefore,thatprovisionisalso  L  unconstitutional.  8        B)TheOilReserveAct(ORA)       Burdenoninterstatecommerce.FirsttheORAundulyburdensinterstatecommerceby   imposingresidencyandterritoriallicensingrequirementsonoildrillingandexploration.Because   itdiscriminatesagainstoutof_staters_Ԁitmustmeetstrictscrutiny,mustbenarrowlytailoredto p fulfillacompellingpurpose.Itisclearlynottheleastrestrictivewaytoprotectlocalexplorers \ andprotectinglocalinterestisnotacompellingpurpose. H     PrivilegesandImmunitiesclauseofArt.4:TheP/Iclausestatesthatwhenastate  p discriminatesagainstindividualsinhibitstheireconomicabilitiesorcivilliberties,thelawmust  \ meetstrictscrutiny,theanalysisaboveisapplicable. H Thelawfails. 4       Equalprotection:Theequalprotectionclauseofthe14thAmendmentappliesifthelaw   attemptstodiscriminatebasedonclassifications;thislawdoessointwoways.(1)Itdrawsa  distinctionbetweeninstateresidentsandoutofstateresidents;(2)BetweenCountyresidentsand  othercountyresidents.Italsorestrictsdrillingtothatresidentscounty.Thisimpairseconomic  interestindrillingandthereforemustonlyberationallybasedonalegitimatereason.Thelaw l mustbeareasonablewaytofulfillthatpurpose.Hereissuinglicensestolocationsofcounties X  doesappearreasonabletoprotectlocalexploration. D!     SubstantiveDueProcess:14thAmendmentprotectssubstantivedueprocessrightstoa #l! libertyinterest,righttodrillisaneconomiclibertybutitisnotfundamentalright,sorational $X" basedreviewisapplied. $D #     Basedonthisanalysis,theORAviolatedthedormantCommerceclauseandtheP/I &"% clauseofArticle4andisthusunconstitutionalaswritten,thegovernmentisnotamarket '#& participatenoristhereacompellingreasonforthelaw. (#'     (C)TheCircuitCourtofKentCountydoesnothavejurisdictiontohearthelawsuit,so |*%) theCourtofSpecialAppealsshouldoverturntheCircuitCourtanddismissthesuit.The h+&* ConstitutionalgrantsexclusivejurisdictiontotheSupremeCourttoresolvesuitsbetween2  states.Here,DelawareandMaryland.     REPRESENTATIVEANSWER2 t  .Q  A.MDCurrencyAct L  <( 4 <DLX<  Underthesupremacyclause.Federallawtrumpsstateandlocallaw.Here,aMDact $ t creatingnewmoneyandrefusingtoacceptUScurrencycontradictsthe longstandingfederal  ` statue8thatUScurrency8.settlesalldebts.Becauseofthecontradictionsinthestateand  L  federalstatues,thefederalstatuewouldprevailandtheMDstatuewouldbefound  8  unconstitutional.Furthermore,ArticleIgrantstothefederalgovernmenttherighttocoinand $  printmoney.Thatauthorityisexpresslygiventothefederalgovernment.Therefore,MDs   attempttocointhemoneyisnotwithinitspowerorauthority.Thisstatuewouldbe   unconstitutionalasaviolationofArticleI.       B.OilResidenceAct p     PursuanttothecommerceclauseofArticleI,Congresshasthesoleauthoritytoregulate H interstatecommerceandtheindividualstatescannotundulyburdeninterstatecommerce.Here, 4 theactaddressesoildrillingandexplorationinMDbecauseoftheaggregateeffectsofoil  p drillingoninterstatecommerce,oildrilling/explorationiswithininterstatecommerce.MDs  \ residencyrequirementforlicensingplacesanundueburdenoninterstatecommerce,makingit H impossibleforexistingbusinessestoreceivelicenses,andisanunconstitutionalviolationofthe 4 commerceclause.         Thedormantcommerceclause,inherentinthecommerceclause,prohibitsastatefrom  discriminatingagainstoutofstatebusinessesabsentacompellingstateinterestandnoless  restrictivemeansofachievingit.Here,MDrequiresresidencyinthecountyforoillicensing;  discriminatingagainstnonresidentpersons/businesses.Theactspurposeistoprotectlocal l explorersanimportantstateinterest,howeverthatmaybeachievedwithadditionalfeesortaxes X  onnonresidentsnotjustonalloutexclusion.Becausetherearelessrestrictivemeans,theact D! violatesthecommerceclauseandfails. 0"        Dueprocessclauseofthe5thAmendmentappliedtothestatesviathe14thAmendment, $X" prohibitsstateactionthatdiscriminatesagainstindividuals.Here,theacttreatsresidentsandnon $D # residentbusinessesinMDdifferently.Sincethediscriminationinvolvesanordinaryright,(not %0!$ marriage,religion,etc.)theactisevaluatedunderrationalreview.Here,thestatesinterestin &"% protectinglocaloilexplorersislegitimate.However,theexclusionofallothersisnot '#& rationally/reasonablyrelatedtoprotectingthatinterest.Theactviolatesdueprocessandis (#' unconstitutional. )$(     Theequalprotectionclausesofthe14thAmendmentprohibitsstateactionthattreats h+&* similarlysituatedpersonsdifferently.HereMarylandresidentsandnonresidentsarebeing T,'+ treateddifferentlyintheirabilitytodrillforoil.Forthesamereasonsdiscussedabovein due  processnorationalrelationshiptheactalsoviolatedequalprotection.        C.TheMDCourtofSpecialAppealsshouldruleinfavorofDelawarebecauseArtIIof t theConstitutiongrantsoriginaljurisdictiontotheSupremeCourtoftheU.S.fordisputes ` between/amongthestates.Here,MDandDelawarearethepartiesandjurisdictionlieswiththe L  S.Court.#XXX>X3#:XXXX  8   #XXX:Xb#>XXXX 5#$%&'()*+(005#$%&'()*+?+ ,4 <DLX?J    B+ ,4 <DL,XB >&x%X>X&< %%>&xA& % %&<      AX"X %A&#XXXAX"b#>XXXXJtc    Jtcd dAdԌ̌  >XXX>X>XXX>X  $ ,X,X$   T,'+   QUESTION3   e?( 4 <DL,X?  Andrea,becauseofajobtransfer,neededtosellherhomein_Harford_ԀCounty,Maryland.  BecauseshehadnosuccesssellingitherselfsheengagedAuctioneersUnlimited,LLC,tosell t herproperty asis. `   A.U.preparedacontractgivingA.U. 8theexclusiveRightandAuthoritytoSellthe 8  propertyknownas102RiverRoad,BelAir,HarfordCounty,Maryland,andtoretainalien $ t thereontosecureanycommissiondueAU.  `   A.U.promised,forthecommissionof10%,tosecureapriceofOneHundredThousand  8  Dollars($100,000)orhigher. $    Thecontractalsostatedthat 8A.U.shallprovideallnecessaryformsandcontractsto   insureahighqualitysale.     AttheauctionBarnesbid$105,000.Becausethebidexceededtheminimumrequired, p thebidwasacceptedandBarnessignedacontractofsalepreparedbyA.U. \   A.U.wasawareofSection10702(b)(i)ofTheRealPropertyArticlewhichprovidesthat 4  8avendorofsinglefamilyresidentialrealpropertyshallcompleteanddelivertoeach  p purchaserawrittendisclosureoftheconditionofthepropertyorawrittendisclaimeronaform  \ providedbytheStateRealEstateCommission.TheSectionfurtherprovidesthatanypurchaser H whodoesnotreceivetheformonorbeforeenteringintothecontractofsalemayrescindthe 4 contractbygivingnoticetotheSellerortheSellersagentandmayalsodemandreturnofany   deposit.     A.U.didnotprovidetheformbutinsteadinsertedintothepurchasecontractinbold  lettersthatthepropertywassold ASIS.    Barnes,beforesettlement,statedhewantedapricereductionbecausehewasnotsatisfied X  withtheconditionofthegaragewhichheclaimedhedidnothavetheopportunitytoinspectand D! whichhebelievedwouldcosts$5,000torepair.Whenhisdemandwasnotmethethreatenedto 0"  rescindthesalescontractunderSection10702becauseheneverreceivedthedisclosureorthe #l! disclaimerformrequiredbythestatute.Andreasteppedinandreducedthepurchasepriceby $X" $5,000soshewouldnotlosethesale. $D #  XAndreathensuedA.U.forthe$5,000allegingitbreacheditscontractualagreementto &"% provideallformsandcontractsnecessarytoproduceahighqualitysale. '#&  X  A.U.defendedthatitwasnotthevendorandwasnotrequiredtoproducetheform.It )$( furtherstatedthatthestatementinboldtypethatthepropertywassold ASISwasthe |*%) equivalentoftheStateformsinceitdisclaimsallwarranties.Itfurtherclaimsthatthecontract h+&* termregardingformsisambiguous. T,'+      DISCUSS THEFOLLOWING:   "#"  6" <DLX6  #s2  A  .3   `   Barnespositionregardinghisrighttorescind.#s~t݌ d Ќ  X  X   <( 4 <DLX<"#"  6" <DLX6  #u2  B  .3   `   TheproprietyofAndreasunilateralreductionofthepurchaseprice.#uv݌ <  Ќ  X  X   <( 4 <DLX<"#"  6" <DLX6  #w2  C  .3   `   ThemeritofAndreassuitagainstA.U.#wx݌  d Ќ  X  X   <( 4 <DLX<"#"  6" <DLX6  #y2  D  .3   `   A.Usinterpretationofitscontractwith_Andrea,_Ԁthequotedstatute,andthe  <  contractofsalewithBarnes.#yz݌ (  Ќ  X  X   <( 4 <DLX<  B    >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"d#>XXXXBx|  REPRESENTATIVEANSWER1Bx|y} }Ԍ   Ќ  >XXX>X>XXX>X>XXX>X>XXX>X    l|K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&ed#AX"X %A&#XXXAX"Z}#>XXXXK~  K~݌̌  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"#>XXXXK  A.  Barnespositionregardinghisrighttorescind.K݌ t Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"ځ#>XXXXK"  K"a݌̌  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"B#>XXXXK9    WhetherBarnesmayrescindhissalescontractornotdependsonwhetherhispurchaseof L thehouse asissomehowabrogatesthisstatutoryprovision.Inthiscase,Section10702(c)(i) 8 doesnotmandateanytypeofwarrantybeprovided.Instead,itonlyrequiresawrittendisclosure $t oftheconditionofthepropertyorawrittendisclaimeroftheconditionoftheproperty.Although ` purchasingthehouse asismightdisclaimanyimpliedwarrantiesnormallyfoundinasales L contract,itdoesnothingtoadisclosurestatutesuchastheoneatissue.Becausethissectionof 8 theRealPropertyArticlealsoprovidesthatpurchasersnotreceivingtheformareentitledto $ rescissionBarnesdoeshavearighttorescindasaresultofA.Usfailuretomeetitsstatutory  obligations.K9x݌  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"Y#>XXXXK3  K3r݌̌  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"S#>XXXXKJ  B.  TheproprietyofAndreasunilateralreductionofthepurchaseprice.KJ݌  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&(#AX"X %A&#XXXAX"j#>XXXXKˏ  Kˏ ݌̌  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"#>XXXXK    WhetherAndreawasentitledtounilaterallyreducethepurchasepriceturnsonwhether \  shehadanyrightsunderthesalescontract.AndreagrantedA.U.theexclusiverighttosellher H! residence.AnditdoesappearthatthesalescontractwasbetweenA.U.andBarnes.Andrea, 4"  however,wasathirdpartybeneficiarytothiscontract.Shefurtherwasawareofherbenefit  #p! underthiscontractandthereforehadrightsunderthecontract(thirdpartybeneficiarynotaware  $\" ofrightsundercontractandnotrelyingontheexpectedbenefitcannotenforcecontract). $H # BecauseshewasthedirectbeneficiaryofthesalescontractandsheeffectivelymadeA.U.her %4!$ agentinthesale,shewasentitledtoreducethepurchaseprice.K!݌ & "% Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"#>XXXXK~  K~݌̌  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&\#AX"X %A&#XXXAX"#>XXXXK  C.  ThemeritsofAndreassuitagainstA.U.KԚ݌ (#' Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&s#AX"X %A&#XXXAX"#>XXXXK  K:݌̌  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&ٜ#AX"X %A&#XXXAX"#>XXXXK    AndreadoeshaveasuitagainstA.U.forbreachinitsagreementtoproduceahigh *%) qualitysale.Althoughtheremightbesomequestionaboutwhatprovidingformsforahigh l+&* qualitysaleactuallymeans,itissafetosaythatcomplyingwiththestatutoryprovisionsrequired X,'+ ofallresidencesaleswouldbenecessarytomeetthisrequirement.BecauseA.U.hasfailedto  meetthisrequirement,itarguablybreached.ButthisdoesnotmeanthatAndreaisentitledto  damagesof$5,000.Evenassumingthatthehousewasworth$105,000,shewouldnotbe  entitledtothefullamount.BecausesheowedA.U.a10%commission,sheonlywouldhave t beenentitledto$4,500forherexpectationdamages.Further,itsnotclearthatherhousewas ` evenworth$105,000astheonebuyerwhobidthatamountreducedhispriceafterhesawthe L  garage.Therefore,A.U.hasagoodclaimthatalthoughitmighthavebreachedtheagreement, 8  herdamagesarearguablyzero,especiallyconsideringAndreareducedthepurchaseprice.KQ݌ $ t Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"2#>XXXXK   D.  A.U.sinterpretationofitscontractwithAndrea,thequotedstatute,andthecontractof  L  thesaleswithBarnes.K K݌  8  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX",#>XXXXKѧ  Kѧ݌̌  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"#>XXXX XK  First,A.U.claimsthatitwasnotthevendor.Butthecontractspecifiesthatithadthe    exclusiverighttosellthepropertyandwouldprovideall necessaryforms.A.U.was   thereforeclearlythepropervendorasithadthecontractualrighttosellthepropertyandinfact   didsellthepropertyinaccordancewiththiscontractualright.K5݌   Ќ  >XXX>X>XXX>X>XXX>X>XXX>X     K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&ƪ#AX"X %A&#XXXAX"#>XXXXKӭ  Kӭ݌ p Ќ  >XXX>X>XXX>X>XXX>X>XXX>X     K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&#AX"X %A&#XXXAX"#>XXXXK   A.U.sclaimthatbecausethepropertywassold asis,itdidnothavetocomplywiththe \ statuteisalsowithoutmerit.Asnotedabove,thestatuteisadisclosureprovision,notawarranty H provision.Becausethestatutedidnotprovideanywarranties,awarrantydisclaimerhasno 4 effect.K I݌  p Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   K    >&x%X>X>&x%%>&x&< %%>&xA& % %&<    #A& % %A&##&x% %A&*#K  XX%&x>XXXXAsforitscontractofsaleswithBarnes,A.U.sinterpretationofthestatuteas  \  ambiguousisproblematic. Allnecessaryformsisnotambiguousinthiscase.Ifastatute H requiresthataformbeutilized,thenitisnecessary.BarnesmightlooktoA.U.scourseof 4 dealingwithothercustomersorwhatthecustomisintherealestateindustrytomakehiscase.    Highqualitysaleisarguablyambiguous,butbecausethecontractclearlyrequirestheformat   issue,itdoesnotaffectA.U.sliabilityunderthestatute.Barneswouldthereforebeentitledto  rescission.K݌  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   XC    >XXX>X>XXX>XX8XX>XAX"XXX8      #XXXAX"#>XXXXC  C XԌ̌  >XXX>X>XXX>X     REPRESENTATIVEANSWER2  X  n@    >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"#>XXXX@  A  Barneshasanabsoluterighttorescind.Section10702(c)(i)expresslystatesthatabuyer 0"  whodidnotreceiveawrittendisclosureofthepropertybeforeoronenteringintothecontract #l! hasarighttorescindthecontractbygivingnoticetothesellerorsellersagent.Inthiscase,the $X" contractwasformedatauctionwhenBarneswontheauctionwiththehighestbid.Inorderfor $D # A.U.tocomplywiththewrittendisclosurerequirement,itwasthenthattheymusthave %0!$ presentedBarneswiththewrittendisclosurestatement,notlateratsettlementsincethepurpose &"% ofthestatementistomakebuyersawareoftheconditionofthehomebeforetheyenterintoa '#& contractwiththeseller.@݌ (#' Ќ  >XXX>X>XXX>X>XXX>X>XXX>X   B.  Andreasunilateralreductioninpriceshouldbeupheld.Amodificationofcontractsina |*%) nonsaleofgoodssituationmustbesupportedbyconsiderationinordertobevalid.Inthiscase, h+&* Andreasreductionofthepurchasepriceshouldbeupheld.Asconsideration,Barnesisagreeing T,'+ towaivehiscontractualrighttovoidthecontractfornotreceivingthenecessaryformunder10  702whichwouldhavedisclosedthedamagedgarage.Fivethousanddollarsisthepricethatit  willcostBarnestofixthegaragesothemodificationrepresentsthis.  C.  AndreassuitagainstA.U.shouldsucceed.AndreaentrustedA.U.toactasheragent ` forsaleofherhouse.A.U.expresslypromisedtoherthattheywouldprovideallformsanddid L  not.Asaresultoftheirbreach,Andreawasforcedtolowerthesalepriceby$5,000to$100,000. 8  ThecourtmayrulehoweverthatAndreaisonlyentitledtorecovertheamountofdamagesthat $ t shesufferedasaresultofA.U.sbreach.Inthiscase,A.U.shouldstillrecoveracommissionof  ` 10%ofthecontractpricesincethetotalsaleremainsover$100,000.Therefore,$5,000wouldbe  L  toohighofarecoveryandsheismorelikelyonlydue$500(10%ofthepricereduction).  8    A.U.sinterpretationofitscontractwithAndreaisincorrect.Althoughauctioneersare   oftenconsideredthirdpartieswhoonlyenableatransactiontooccur,inthiscasetheywerea   vendor.A.U.hadtheresponsibilityofpreparingallformsforthesaleofthehome.   Additionally,theywerereceivingacommissionforthesaleofthehomeover$100,000!aclear   indicationthattheywereactingasavendorinthiscase.Thus,theywererequiredtoproducethe p formbecausetheywereavendor,theyexpresslystatedtheywouldincludeallnecessaryforms, \ andthe10702statuterequireseitherthesellerorsellersvendortoprovidethewritten H disclosureform. 4   A.U.sinterpretationofthequotedstatuteisincorrect.Theterms asisdonotservethe  \ samepurposeofthe10702form.The10702formisastatutorymandatoryformthatenables H buyerstofullyunderstandtheconditionofthehometheyarebuying.Thisisespecially 4 importantinthecaseofsinglefamilyhomeswherebuyersareoftenlessknowledgeableoffault   conditions.Thestatementisnotanexpressionofwarrantybutgivesnoticetothebuyerofwhat   conditionstheyshouldbeawareofbeforepurchasingthehome.Incontrast,the asisnotifiesa  buyerthatthesellerismakingnowarrantiesastotheconditionofthehome.Thus,inthiscase,  ifthe10702formdisclosedthatthegaragewasfaulty,thephrase asiswouldgivethemnotice  thatAndreawillnotbefixingthegarageandthebuyermusttaketheconditionastheyfindit. l   A.U.mayarguethatthecontracttermofthesalewithBarnesisambiguoussincethe D! homewaspurchasedatauctionasopposedinbilateralnegotiations.Thisargumentshouldfail. 0"  Acontractisdeemedenteredintoatauctionwhenabidderhasthehighestbidandtherebywins #l! theauction.Thefactthattherewerelatersettlementproceedingstotakecareofwastypically $X" onlytotakecareofvariousadministrativeissues.Asaresult,the10702noticewasdueto $D # Barnesatthetimeoftheauction!whenthecontractwasinfactformed.#XXX>X䬙#  %0!$  T,'+   QUESTION4   }  AlphonseheardthatSgt.GastonoftheWaldorf(Maryland)PoliceDepartmentwantedto  talktohimaboutastringofburglaries.AlphonsewenttotheWaldorfPoliceHeadquartersand t askedforGaston,whoescortedAlphonsetoaninterviewroom.Afterseveralhoursof ` questioning,Alphonsestoodupandsaid, Imleaving.Gastonyelled, Sitdown!Yourenot L  goinganywhere.Alphonseimmediatelysatbackdown.Anhourlater,Alphonseconfessedto 8  theburglaries.Hewaspromptlyproperlychargedand,afterpostingbail,AlphonseretainedPere $ t Mehsonnetorepresenthim.HetoldMehsonnethathewasneveradvisedofhis Miranda  ` rightsandconfessedonlyafterhewasworndown.Headmittedthat,otherthanthefactsstated  L  above,hewasnotthreatenedorcoercedintoadmittingthecrimes.  8      AtAlphonsesarraignmentinCircuitCourt,Sgt.DouwrightoftheWaldorfPolicetook   Mehsonneaside.DouwrighttellsMehsonnethathehadfiledareportwiththeStatesAttorney   statingthathewasintheroomduringtheinterrogationandthathetoldGastontoadvise   Alphonseofhisrights,butGastonsaid Idontneedto.     XӀOnthedayafterthearraignmenttheStatesAttorneysofficesentMehsonnealetter \ statingthattheofficefollowedan openfilediscoverypolicy.AcopyofGastonspolicereport H attachedtotheletter.GastonsreportstatedonlythatAlphonsevoluntarilyconfessedtothe 4 crimes.NocopyofDouwrightsreportwasincluded.Mehsonnedecidedtofilenomotionsand  p surprisetheStatebycallingDouwrightasawitnessforthedefense.  \  X    DuringtestimonybyGastoninatrialbeforeajuryintheCircuitCourtforCharles 4 County,AssistantStatesAttorneyGetthamasksGastonwhetherAlphonsemadeanystatements   tohim.Mehsonneobjects.ThejudgeasksMehsonneforhisbasis.Mehsonnestates Fifth   Amendment.MarylandRules.GetthamaskstheCourttobeheardontheobjection.      0  1. ` Whatargumentswouldyouexpect_Gettham_Ԁtomakeinsupportofoverruling l theobjection?X (#(#   2. ` HowshouldtheJudgeruleandwhy? p  0"   REPRESENTATIVEGOODANSWERS $D #  A.  Getthamargument. &"%     GetthamsstrongestargumentisthatMehsonnefailedtofileamandatorymotion (#' objectingtotheunlawfullyobtainedadmissionasrequiredbyMDRule4252(a)(4).Thisrule )$( providesthatifthistypeofobjectionisnotmadewithin30daysoftheappearanceofcounselor |*%) thefirstappearanceofthedefendant(unlessmorerecentlydiscoveredthroughdiscovery,seerule h+&* 4252(b)thedefenseiswaivedunlessthecourtordersotherwiseforgoodcause,seeRule4 T,'+ 252(a).Thismotionmustbemadeinwritingunlessotherwisedirected,seeRule4252(e),soit  istoolateforMehsonnetobringuptheargumentorallyincourt(itsnotclearhowmuchtime  passedbetweenthearraignmentandtrial,butasMehsonnedecidedtofilenomotionsand   surprisethestatesattorney,itissafetoassumethathewaitedmorethan30days). t   GetthammightalsotrytoarguethatAlphonsewasnotincustodybecausehevoluntarily ` wenttopoliceheadquarters,butthisargumentwillfailforreasonsnotedbelow. L  B.  Howshouldthejudgerule? $ t     Thisisaveryclosecall,butIbelievethejudgeshouldruleforAlphonseandsustainhis  L  objection,therebykeepingoutthetestimony.First,theremusthavebeenaFifthAmendment  8  violation!Alphonsemusthavebeenincustodyandinterrogatedwithouteitherbeinghaveread $  hisrightsornothavingwaivedhisrights.Inthiscase,althoughhevoluntarilywenttopolice   headquarters,hewasincustodyafterGastontoldhimthathewasnotgoinganywhere   (reasonablepersonwouldnotfeelfreetoleave).Hewasobviouslyinterrogatedashewasasked   numerousquestionsaboutthecrimethatwouldreasonablyelicitaresponse.Andhewasnot   readhisMirandarights.SotherewasaFifthAmendmentviolation,butthequestionremains p whetherthisisadmissible. \     ThereseemstobelittledoubtthatMehsonnewaivedanyargumenttokeepout 4 Alphonsestestimonybecausehefailedtomakeamandatorymotionwithin30daysasrequired  p byRule4252(a)(4)&(b).Thecourt,however,doesnothavetofindwaiverifthereisgood  \ causeshown.Inthiscase,MehsonneshouldarguethattheprosecutorhasviolatedRule4 H 263(a)(2),whichrequireshertodiscloseanyrelevantmaterialorinformationregardingthe 4 acquisitionofastatementmadebythedefendant.Inthiscase,thestatesattorneyviolatedthis   rulebyfailingtoturnoverSgt.Douwrightsreport.Ifthiswereallweknew,itwouldbeeasy   forthecourttopermitthisobjection.Whatmakesthisaclosercall,however,isthatMehsonne  knewaboutthisreport,thoughhedidnotreceiveit,andtriedto surprisethestatesattorney.  Instead,heshouldhavefiledamotiontocompeldiscoveryunderRule4263(f);thenfileda  timelymotiontosuppressbeforethetrial.Soneithersideiswithoutfault.Inthiscase,because l thestatedidviolateAlphonsesFifthAmendmentrightandfailedtomeetitsdiscovery X  obligations,IwouldgrantAlphonsesobjectiontokeepouthistestimonybecauseitscollection D! violatedtheFifthAmendment.ThestatesattorneycannonethelessstillimpeachAlphonses 0"  testimonywiththissuppressedevidenceunderRule4252(h)(2). #l!    REPRESENTATIVEANSWER2  %0!$ AA.  Gentthamwouldargue: '#&     1. ` Sgt.GastondidnotneedtogiveMirandawarningstoAlphonsebecausehecame )$( tothepolicestationonhisownfreewill.GetthamwouldarguethatwhenSgt.Gastonyelledat |*%)  Alphonseto sitdownandtoldhimhe wasntgoinganywhere.GastonwasaskingAlphonse h+&* tostay,butnotrequiringhimto.GetthamwouldarguethatGastonhadnotseizedAlphonses  personandhewasfreetoleaveatanytime;thereforevoluntarilyofferedtheconfession.     2. ` GetthamwouldarguethatMehsonneshouldhavefiledapretrialmotionregarding t thematterunderRule4252,30daysaftertheinitialappearanceofAlphonsepursuanttorule4 ` 213.HewouldarguethatRule4252(a)(4)requiresthisregardinganyunlawfullyobtained L  admission,statementorconfession.Ifthemotionisnotfiledthematteriswaived.Gettham 8  couldalsoarguethedefensecouncilsobjectionisnotspecificenough. $ t B.  TheJudgewouldrule:  L    1. ` Sgt.GastonfailedtogiveproperMirandawarningstoAlphonse.Althoughitis $  truethatAlphonsevoluntarilywenttothepolicestationandsubmittedtoseveralhoursof   questioning,theconfessionwasnotobtainedwhilehewasthereonhisownfreewill.Thisis   becauseafterseveralhoursofvoluntarilysubmittedtoquestioning,Alphonseannouncedhis   intentiontoleaveandwasorderedto sitdownandtoldhewasntgoinganywhere.This   amountedtoaseizureofAlphonsesperson.AtthatmomentandthereafterAlphonsewasinthe p custodyofthepolice.ItwasafterthatpointwhenAlphonsemadehisconfession.Hewasnot \ properlygivenMirandawhenhewasplaceintocustody. H     2. ` Theprosecutionshouldhaveturnedovertheconfession,pursuanttoRule4  p 263(a)(2),whichrequirestheprosecutiontodiscloseanystatementsmadebydefendanttostate  \ agent,whichitintendstouseattrial.Itisnotnecessaryforthedefensetorequestthis H information.Thisapplieseveniftheinformationwasinpossessionofthepoliceatthetime. 4 See4263(g).Thedutytodiscloseisacontinuingduty.See4263(h).Thisinformationshould   havebeenprovided25daysaftertheinitialappearanceofAlphonsepursuanttorule4213.       3. ` However,Mehsonneshouldhavefiledamandatorypretrialmotion,asexplained  aboveinGetthamsobjection.Thisisbecausethebasisofthemotionwasdisclosedtohimprior  firstbyhisclientandthenbyofficerDouwright,andnotbythediscovery.Defendantcouncil l knewabouttheproblemandfailedtofileapretrialmotion,sothatobjectionofOverruled.The X  Statementcomesin.:XXXX#:&x%X:X´#:XX%:&x  D!  T,'+   QUESTION5    Recently,Mrs.BerniceWilliamshusbanddied,andsherequiredtheassistanceofa  Marylandlawyertorepresenttheestate.Mr.Williamsleftthebulkofhisestatetohiswifeand t hedirectedthatabequestof$50,000shouldbesharedbyhissurvivingdescendants,ifany. `   Mrs.Williamsandherdaughters,SarahandJane,metwithCarolCounsel( Counsel)in 8  AnneArundelCounty,Maryland.Mrs.WilliamswasreferredtoCounselbyJane.Janewas $ t representedbyCounselinacontractactionagainstherformeremployerandCounselisassisting  ` JanecurrentlyinthepreparationofJanesestateplanningdocuments.Janetoldhermotherthat  L  CounselwasanexcellentlawyerandthatCounselwouldpayJanethesumof$1,000for  8  referringthecasetoCounsel. $     WhenMrs.Williams,SarahandJaneinitiallymetwithCounsel,Counselexplainedthat   shespecializedinestatesandtrustlawandcouldeasilyhandleeverything.Mrs.Williamsagreed   toanacceptablefeearrangementwithCounselduringthemeeting.Inaddition,CounseltoldMrs.   Williams,SarahandJanethateachofthemcouldtellCounselanythingandthatCounselwould p notdiscloseittoanyone. \   DuringalatermeetingonlybetweenMrs.WilliamsandCounsel,Mrs.Williamsrevealed 4 thatSarahwasnotherhusbandsdaughterbutwasherdaughterfromherveryshortprior  p marriagethatoccurredwhenshewassixteenyearsold.Herlatehusbandhadraisedbuthehad  \ neveradoptedSarah.CounseladvisedMrs.WilliamsthatherhusbandsWillonlyprovidedfor H hischildrenandthatSarahwouldnotreceiveanymoneyfromhisestate.Shortlythereafter, 4 CounselexcusedherselffromthemeetingtomakeatelephonecalltoJanetoletherknowthat   shewouldbereceivingtheentirebequestfromherfathersestate.      Laterthatsameday,JanetoldSarahthatshewouldnotreceiveanypartofthe$50,000  becauseherfatherwasnotMr.Williams.         EvaluateanddiscussfullythepossibleethicalviolationsofCounsel. X    REPRESENTATIVEANSWER1 0"      CounselhasviolatedanumberofprofessionalrulesinherrepresentationofMrs. $X" Williams( Williams),Sarah,andJane. $D #   Conflicts  &"%   X1. ` Concurrentrepresentation.CounselisalreadyJaneslawyerandnowhasbeen (#' askedtorepresentSarah,Jane,andMrs.WilliamsinthedispositionofMr.Williamsestate. )$( AlthoughCounselmayfeeladditionalloyaltyforJane,shecannotpreferJaneinthe |*%) representation.Alawyercannotconcurrentlyrepresenttwopartieswhoseinterestsareinconflict. h+&* Here,SarahandJanesinterestsdirectlyconflictbecauseJanewillgetallofthepropertyifSarah T,'+ isnotMr.Williamsdaughter.ThismaygototrialandCounselcouldnotrepresentboth.  Further,Counselcouldnotgetthemtowaivetheconflictbecausewaiverisonlypermissible  wherealawyerreasonablybelievesthatherabilitytorepresenteachpartywillnotbematerially  affectedbytheconflict"thatisnotthecasehere. t  X XAlawyeroweshisorherclientsthedutyofloyalty.Shemustactinthebestinterestsof L  herclients,totheextentitdoesnotconflictwiththelaworethicalduties,andmustact 8  competentlyanddiligently.Whenembarkingonjointrepresentation,itisimportanttomakethe $ t groundrules,andethicalrulesandduties,cleartoeachclient.Counselshouldhavemadeitclear  ` toallthreethat,whiletheconversationstheyhadwithherareconfidentialastotherestofthe  L  world,theyarenotconfidentialastotheotherjointmembersoftherepresentation.  8   X  X2. ` Confidentiality.Lawyersowethedutyofconfidentialitytotheirclients.This   meansthatanyinformationgainedabouttheirclient,whetherfromtheclientorfromothers,may   notbedisclosed.Thatmeansthatanythingtoldtoher,byanyofthemembers,hadtobeshared   withall(ifithadanyrelevancetotherepresentation).Counselshouldalsoavoidmeeting   privatelywithsome,butnotall,oftheclientsbeingrepresentedtoavoidthisproblem.Lawyer p hadadutytorepresenteachofthemequallyandeffectivelyandtowithdraworadvisethemto \ consultotherattorneyswhentheirinterestbecauseadverse. H  X  WhenMrs.WilliamstoldCounselthatSarahwasnotMr.Williamsdaughter,Counsel  p wasrequiredtodisclosethattobothSarahandJanebecauseitaffectedthepurposeofthe  \ representations.Atthatpoint,sheshouldhaveadvisedthemtoseekadvicefromanother H attorney(eachtoseektheirownattorney)becausetheyarenowindirectconflict.Shehadno 4 righttotellJanebutnotSarah"thisbreachesherdutyofloyaltytoSarah.Mrs.Williamswill   alsofeelthatCounselbreachedherdutyofloyaltyandconfidentialitytoherbecauseCounseldid   notaccuratelyexplaintheconfidentialityrules.      X3. ` Referral.Alawyermaynotobtainareferralfeefromanonlawyer.Alawyermay  giveanotherlawyerwhorefersaclientashareinthefee,wheresuchamountisbasedonthe l proportionoftheotherlawyersassistanceorinvolvementinthematter.Lawyersmayalsotake X  partinlegalgroupplansandmaypayafeetobepartofalegaldirectory,butmaynotacceptthis D! typeofreferralfee.CounselmaybesanctionedforgivingthereferralfeetoJane. 0"   X X4. ` Specialization.Althoughitmaybeunconstitutional,Marylandwillnotallow $X" lawyerstoincludethattheyarespecialistsinafield.Counselviolatedthisrulebecauseshe $D # informedherclientsthatshespecializesinestates. %0!$  X X5. ` Fee.Thefeearrangementandrateormethodofdeterminingthefeeshouldbe '#& determinedupfront,andthenitshouldbeconfirmedinwritingalongwiththelawyers (#' understandingofthescopeoftherepresentation(representationmaybelimitedinscope).Here, )$( thepartiesagreeonthefee,butthereisnoindicationthattheagreementwasreducedtowriting. |*%) Counselviolatedherethicaldutytoreducetheagreementtowritingwithinareasonabletime. h+&*  X T,'+    REPRESENTATIVEANSWER2     TherearemultipleviolationsoftheMarylandRulesofProfessionalConduct( RPC).    1. ` ConflictofInterest.ThereisaconflictofinterestwhenCounselagreedto ` representmultiplebeneficiariesofthesameestate.Mrs.Williams,asthemainbeneficiary,could L  haveadirectlyadverseinterestwiththeotherdescendantsofMr.Williams.Thereisalsoa 8  conflictbecauseJaneisanexistingclientofCounsel.Counselcouldhaveconfidential $ t informationregardingJanethatcouldharmherorotherclientsinthismatter;Counselsexisting  ` obligationtoJanecouldmateriallyinterferewiththerepresentationoftheotherclients.  L      Counselcannotrepresentalltheseclientsinthesamematterunless:(i)Counsel $  reasonablybelievesshecanadequatelyrepresenteachoftheseclients;(ii)shefullyexplainsthe   potentialconflictstotheseclientsandinformsthemofthe_desirablility_Ԁtoseekindividual   representation;and(iii)eachclientgivesinformedconsentinwritingandsignsajoint   representationagreement.Atanytimeaconflictarises,Counselmaystillberequiredto   withdraw. p     2. ` ReferralFeestoNonlawyer.Counselcannotpayanyreferralfeetoanonlawyer H (here,Jane)becauseasharingofprofitwithnonlawyerisinviolationofRPC. 4       3. ` ImproperSelfDesignationofSpecialist.CounselviolatedRPCwhenshe  \ presentedherselfas specialistintrustandestatelaw.Exceptforapatentattorney,alawyer H shouldnotholdherselfoutasaspecialistinanyareaoflaw. 4       4. ` UnjustifiedExpectation.WhenCounselpromisedthatshe couldeasilyhandle   everything,shewascreatingunjustifiedexpectationsintheclients,whichisalsoaviolation.   X5. ` FeeAgreementandJointRepresentationAgreement.Thefeearrangementis  preferablyinwritingsignedbytheclients,andasdiscussedabove,ajointrepresentationconsent l isrequiredinthismatter. X   X X6. ` AttorneyClientConfidentiality.Counselshouldnotbecommunicatingwithone 0"  jointclientalonewithouttheseotherjointclientsknowledge.WhenCounseltoldtheclientsthat #l! theycouldtellheranything,thatwasinaccurate.Duetothepossibilityofconflicts,sheshould $X" havewarnedtheclientsofthepotentialharmofcommunicationamongthem. $D #  X X7. ` Withdrawal.BythetimeCounsellearnedoftheillegitimatestatusofSarah, &"% Counselshouldhavestoppedthemeetingandwithdrawnfromrepresentingalltheseclientsin '#& theestatematter.Counselhadadutytoactinthebestinterestofherclientsandshouldnot (#' unilaterallyadviseoneclient(Mrs.WilliamsorJane)againstanotherclient(Sarah). )$(  X  #XXX:X# T,'+ Ї     QUESTION6  )(     FredandWilma,aMarylandcouple,weredivorcedafterabitterseparation.Ayearlater  WilmaproperlybroughtsuitagainstFredintheCircuitCourtforBaltimoreCity,overassetsina t SwissBankaccountthatsheclaimedFredwashidingandwhichsheclaimedbelongedtoher. `   Atthedivorcetrial,Wilmatestifiedthatwhiletheyweremarried,Fredtoldherthathe 8  hadstashed$500,000inaSwissBankaccountwhichonlythetwoofthemknewabout.Wilma $ t alsotestifiedthatFredhadstolenmoneyfromothersonnumerousoccasionsandwasgivena  ` ProbationBeforeJudgment( PBJ)bythecourtfortheftafterthepolicecaughthimin oneof  L  hisscams.  8      Duringthetrial,Barney,Wilmasnewboyfriend,testifiedthathehadsecretlyplaceda   taperecorderintheroomwhichrecordedFreddiscussingthewhereaboutsofthemoneywith   Wilmain2005.Barneytestifiedthathisbrother,ReverendSlate,toldhimthatFredhad   confessedtocommittingtheftduringareligiousconfessionsessionwithReverendSlate.     WilmasattorneycalledFredtothestandasahostilewitnessandaskedFred,overhis \ counselsobjections,abouttheSwissBankaccountandthePBJfortheft.AfterFreddeniedboth H thesecretaccountandthePBJ,WilmasattorneysoughttointroducethecertifiedcopyofFreds 4 PBJ.WilmasattorneythensubpoenaedReverendSlatetocometocourttotestifyasan  p impeachmentwitness.   \  XX  DuringthetrialFredslawyermadetimelyobjectionstoalloftheabovetestimonyby 4 WilmaandBarneyaswellastheadmittanceof_PBJ_Ԁdocuments.      Howshouldthecourtruleoneachobjectionandwhy?Discussfully.    REPRESENTATIVEANSWER1 l N1   $500,000inaSwissBankaccount     p  D!    0"  Ѐ0  ThecourtwillprobablysustaintheobjectionaboutthemoneyintheSwissaccount #l! becausecommunicationswereconfidentialandmadewhileWandFweremarried.Thus, $X" FcanasserttheprivilegetopreventWfromtestifyingaboutthemoneyduringtheir $D # marriageabouttheaccountisnotadmissible.Confidentialcommunicationsduring %0!$ marriageareprivilegedunderCJP9105,andbothpartiesholdthatprivilege.&"%(#(#     Therecording (#' 0  BwillnotbeallowedtoeithertestifyaboutorintroducetherecordingofWandF |*%) becauseitisanillegalwiretap.Fdidnotgivehisconsent,andinMarylandallpartiesto h+&* therecordingmustconsent.T,'+(#(#   TheftConfession  0  BstestimonyregardingwhathisbrotherRevSlatesaidFsaid,isdoublehearsaywithout  anyexceptions.Therefore,Fslawyersobjectionwillbegranted.Also,Rev.Slatemay t choosetoinvokehisprivilegeasaclergymemberinordertorefusetotestifyagainstF, ` butitisuptohim.L (#(#   TheftPBJ $ t  <( 4 <DLX<0   (#(# 0  WcannottestifyaboutFspriorbadacts.However,Fcanbecrossexaminedaboutthe  L  PBJbecauseitisaprioractthathastodowithhiscredibility,evenifitisnotconviction.  8  Thejudgewillhavetoweightheprobativevalueofthatevidenceagainsttheprejudiceto $  F.WslawyerisstuckwithwhateverFsays.Theycannotuseextrinsicevidenceofthe   priorbadact.  (#(#  ?( 4 <DL4X?   REPRESENTATIVEANSWER2 p n:   ThecourtwillsustainFredslawyersobjectiononWilmastestimonyaboutthemoney H intheSwissbankaccountbecauseitisprotectedunderthehusbandandwifeprivilege.Both 4 WilmaandFredcanasserttheprivilege.Itdoesnotmatterthattheyarenolongermarried.The  p privilegeattachesifthestatementsweremadeinconfidenceduringthemarriage.Thisseemsto  \ bethecasehere,becauseonly thetwoofthemknewaboutthestatementaboutthemoney. H   ThecourtwillnotallowWilmatotestifyabouttheftsthatFredcommitted,becausehabit   evidenceisnotadmissible.However,Fredcanbecrossexaminedabouthisprioractsthatbear   onhiscredibilitylikethetheftPBJ,ifthecourtfindsafterdoingabalancingthatitwouldnotbe  tooprejudicialtoFred.WilmaslawyerwillnotbeabletouseextrinsicevidencelikethePBJ  documentstoimpeachFred.TheywillbestuckwithFredsanswer.        BarneyhascommittedacrimebyrecordingFredwithouthispermission.Barneywillnot X  beallowedtousethetapeortestifyaboutitincourtbecauseitisacrime!Objectionsustained. D! BarneywillalsonotbeallowedtotestifyaboutFredsconfessiontoRevState,becauseitis 0"  hearsaywithoutanyexception.RevSlatemayinvokethePriestPenitentprivilegetoavoid #l! havingtotestifyagainstFred.EvenifRevSlatewantstotestifyagainstFred,thecourtwill $X" probablysustainFredslawyersobjectionbecausehistestimonyisextrinsicandnotallowedto $D # impeachFredonhisPBJtestimony. %0!$    `     h      T,'+    QUESTION7  B X:XXXXHusbandandWifeweremarriedin1996andhavelivedtogetherintheirhomein  Frostburg,Maryland,sincethattime.Inearly2006,Husbandbegananintimateaffairwitha t femalecoworker.OnJanuary1,2007,WifefoundacardfromHusbandscoworkerdescribing ` theirrelationshipingraphicandunmistakabledetailandconfrontedHusband.Husband L  acknowledgedhisinfidelityandpromisedtoremainfaithfultoWifeandtheirmarriagevows. 8  HusbandandWiferesumedhavingsexualrelationswitheachother.Wife,however,foundshe $ t wassuspiciousanduntrustingofHusbandandaskedhimforadivorceinearlyFebruary,2007.  ` HusbandiswillingtoallowWifetodivorcehim.  L    8  WifeseeksthelegalservicesofBobinobtaininganabsolutedivorce.BobisaMaryland $  attorneywhoregularlypracticesfamilylaw.SheadvisesBoboftheaboverecitedfactsexcept   shetellsBobshehasnothadsexualrelationswithherHusbandsinceshebecameawareofhis   infidelity.ShedoestellBob,however,thatsherecentlymetheroldhighschoolsweetheartand   hadsexualrelationswithhim,celebratingtheendofhermarriagetoherHusband.    ` Basedontheabovefacts:  \ #XXX:X C#:XXXX H (a)#XXX:X1I#  ` CantheWifecurrentlymaintainandprovegroundsforanabsolutedivorce? 4 ЀDiscussfully :XXXX. $t  d (b) ` #XXX:X J# :XXXXDoesHusbandhaveanydefense(s)to_Wifes_Ԁpossiblecomplaintforabsolute P divorce? @  ,  #XXX:X䬊J#:XXXX(c) ` #XXX:X䬃K# :XXXXAttrial,WifetestifiesshehasnothadsexualrelationswithHusbandsince  January1,2007,anddenies,oncrossexamination,thatshehashadsexualrelationswith  anyoneelsewhilemarriedtohusband.WhatshouldBobdoinlightofWifes_testiomony_.   X#XXX:XK#:XXXX  REPRESENTATIVEANSWER1 #XXX:X䬆M# h  M :XXXX #XXX:XN#:XXXX  #:&x%X:X7#:XX%:&xA. ` Wifehasgroundsfordivorce. @"     ` 1. Adultery $h"    `  #XXX:X_N#:XXXX   `  Wifecanassert,asgroundsforthedivorce,herhusbandsaffairwiththe %@!$ coworker.Adulteryariseswhenaspousehassexualrelationswithoneotherthanhiswife. &,"% Adulterymustbecorroboratedwithindependentevidenceofopportunityanddispositions.Here, '#& husbandsaffairwasdocumentedingraphicandunmistakabledetailinthecardwifefound. ($' Husbandsadmissionoftheaffaircompletedthegroundsfordivorce,alleviatinganyadditional )$( needforfurthercorroboration.#:&x%X:X䬭N# *%)    `    ` :XX%:&x2. HusbandsDefense P,'+ Ї   `  Condonationisadefensetofaultbaseddivorce.Itarisesinpertinentpart  whenonespouse,withfullknowledgeoftheotherspousesadulterousaffairforgivesthefirst  spouseandresumessexualrelations.       `  Thereappearstobealikelihoodofconflictingtestimonyonthispoint. ` Initially,itappearsthatHusbandandWiferesumedsexualrelationswitheachother.However, L  whenWifemetwithherattorneyBob,WifetoldBobshehas#XXX:X䬘O#:XXXXnot#XXX:X~U#:XXXXԀresumedsexualrelationsand 8  basedoninformationinsubsection c,itappearsthatthisishowshewilltestifyattrial.#:&x%X:X䬓R# $ t    ` :XX%:&x ThustheapplicationofthecondonationdefensedependsonWifes  8  testimony.IfshetestifiesthatsheresumedrelationswithherHusband,thedefensewillapply.If  $  shetestifiesthatshedidnothaverelationsthedefensewillapplyonlyifHusbandcontradictsand   theCourtcreditshistestimonyoverWifes     B.RecriminationmayalsobeadefenseavailabletoHusband.Thisdefenseapplies   relativetothosefactswhenaspouseengagesinactivityharmfultothemarriageasrevengefor p  theothersspousesmisconduct,therethedefensemightapplybecauseWifehadsexwithanex \ boyfriendtocelebratetheendofhermarriage.Note,however,thatthis#:&x%X:XV#:XX%:&xisnotanabsolutedivorce H defenseandtheCourtcouldstillgrantWifespetition. 4     C. ` BobhasseveraldutieswithregardtothetestimonyofferedbyWife,whichBob  \ knowstobefalseoratleastinconflictwithherpriorstatement.Alawyerhasadutytorefrain H fromsponsoringperjuryandwhenalawyerknowsawitnesshasperjuredherself,severalduties 4 arise.      `  First,Bobshouldrequestasidebarwithhisclienttoconferwithherabout  thetestimonyandofferherachancetocorrectit.Ifsherefusestodoso,BobshouldtellWife  thatifshedoesnotcorrectthetestimonyhewillwithdraw.Ifshestillrefuses,Bobcanwithdraw.  Ifwithdrawalisimpossiblebecausetheyareinmidtrial,BobshouldthreatentodiscloseWifes l #:&x%X:XVZ#:XX%:&xperjurytotheCourt.IfWifestillrefuses,BobshoulddisclosetheproblemtotheCourt. X #XXX:XU#:XXXX#XXX:XH_#   REPRESENTATIVEANSWER2 "l   _:XXXX#XXX:X_# :XXXX  A.Wifesgrounds $0 # #XXX:X$`#:XXXX   ` WifecanprovegroundsforanabsolutedivorceonthebasisofHusbands &"% #XXX:X䬜`#:XXXXadultery#XXX:XVa#:XXXX.Shemustshowthathehadtheopportunityandthedispositiontocommitadultery, '"& whichisprovablebyshowingthatheworkedwiththeotherwomanandusingthegraphiccardas (#' evidence.Adulteryaccusationsneedtobecorroborated.Thecardwillbesufficientcorroboration |)$( becauseitdescribestherelationshipunmistakably. h*%)   B. ` Husbandsdefenses. @,'+    ` Husbandcanarguethedefenseof#XXX:X䬠a#:XXXXcondonation#XXX:Xc#:XXXX.HemustshowthatWifetookhim  backwithknowledgeoftheaffair.WifedidtakeHusbandbackwhenhepromisedtoremain  faithfulandsheresumedsexualrelationswithhim;thus,Husbandhasagooddefenseof  condonation.However,itisnotanabsolutedefensetohisfaultdefense. t    ` Husbandalsohasthedefenseof#XXX:XGd#:XXXXrecrimination#XXX:X/f#:XXXXԀor uncleanhandsbecauseWife L  hascommittedadulterybyhavingsexualrelationswithherhighschoolsweetheart.Thiswillnot 8  beanabsolutedefensetohisfault,especiallysinceheengagedinanaffairfirst,butitisafactor $ t fortheCourttoconsider.  `     C. ` BobsDuty  8     `    ` BecauseBobknowsthatWifehas#XXX:X~f#:XXXXperjured#XXX:X䬵h#:XXXXԀherself,hehasaprofessional   responsibilitytotellhertocorrecthertestimony.      ` Ifshewillnotcorrectit,hemustwithdrawfromhisrepresentationofher.      ` IfaJudgewillnotallowhimtowithdraw,hemustthreatenWifethathewill \ discloseherperjurytotheCourt. H    ` Ifshestillrefusestocorrectit,BobsdutyistodisclosetheperjurytotheCourt  p becausehehasadutyofcandortotheCourt.#XXX:Xh#  \ :XXXX#XXX:X䬳k#    T,'+ QUESTION8    l    In2002,FarmerKangarooconveyedAstaland,a2Oparcelimprovedwithalarge  mansionandasmallfarmhomeandlocatedinArundelCounty,Maryland,bydeedtoNickand t Noraas jointtenantsAsagreed,NoraimmediatelymovedontotheexistingAstaland,while ` NickcontinuedtoresideinMartiniEstates,NewYork.UnbeknownsttoNick,immediatelyafter L  movingonsite,Noraleased5acresofAstalandtoMr.&Mrs.ThinmaninJanuary2003, 8  whereupontheThinmanspromptlymovedintoasmallexistingfarmhomenestledinthewoods $ t onsaid5parcelMr.&Mrs.ThinmanpaidNora$10,000inannualrenttoleasethe5acresand  ` thefarmhome.  L      Quiteunexpectedly,Mr.ThinmandiedinDecember2005.Mrs.Thinmancontinuedto $  liveinthefarmhomeandonJanuary1,2006,herlover,Mr.Bunyanmovedintothefarmhome   withher.Observingtheheavilyfiveacres,Bunyanpromptlyenteredintothelumberbusiness.   Armedwithhisaxe,Bunyanimmediatelyclearedallofthetreesonthe5acres,choppingeach   treeintolumber,whichheinturnsoldforatotalof$50,000.       Afewmonthslater,NickwaspassingthroughArundelCounty,stoppedtocheckon \ Astaland,andwasdistraughttosee5acresofformerlywoodedlandcompletelycleared.Seeing H activityatthesmallfarmhome,hestoppedinanddiscoveredthatMrs.Thinmanhadbeen 4 rentingthefarmhomeandthe5acresforthree(3)years.Bunyanalsoboastedtohimabout  p netting$50,000fromthesaleofthelumber.  \     Nickcomestoyou,alicensedMarylandattorney,toseewhat,ifany,rightshehas 4 againstNora,ThinmanorBunyan.Howwouldyouadvisehim?Discussfully.     REPRESENTATIVEANSWER1   t  NickandNorashareajointtenancy,whichhasarightofsurvivorship.Thejointtenancy  iscreatedbygrant,byFarmerKangaroo,withfourelementsheldatthesametime.Time,title, l interestandpossessionaretheelementsinajointtenancy,thedestructionofanyofwhichwould X  destroythejointtenancy,andleavethetenantsastenantsincommon,withnorightof D! survivorship. 0"      ThefactsstatethatNora,uponmovingontotheproperty,promptlyleasedaportionofthe $X" propertytotheThinmansinJanuary2003.Byleasingaportionoftheestate,Noradestroyedthe $D # jointtenancybyimpingingonNicksrighttopossessionofthepropertyasawhole,makingthem %0!$ tenantsincommon. &"%     Overthreeyearspassed,theleaseat$10,000ayearwaspaidtoNoraforanamountof (#' $30,000.Nickmayasserthisrights,asacotenant,toshareinanyrentorprofitgainedfromthe )$( landbyNora. |*%)     h+&* e  Bunyan,asThinmanslover,andbeginningin2006atenantofthefiveacreparcelcutall   thetreesdownonthefiveacres.UnderLandlord/Tenantlaw,atenanthasadutynottocommit  affirmativeorpermissivewasteontheland.Byclearcuttingtheproperty,forwhichhewasnot  grantedaprofit,Bunyancommittedwaste.NickhasanactionagainstBunyan,and_Mrs.Thinman_ t astheprincipalleaseholderunderagency,torecoverforthewastecommittedontheland.There ` aresomeexceptionstowaste,suchasprioruse,forreasonablerepairs,astonecessity,orbygrant, L  butthefactsdonotsuggestanyoftheseapply,andBunyansoldthelumberforprofit.Nickmay 8  recoveratleasthisshareoftheprofitgleanedfromthelumbersale. $ t     NickmaytakeactionagainstNoratohavethepropertyseparated,bypartition,orsellhis  L  interestastenantincommon.  8     REPRESENTATIVEANSWER2    q~  NickandNoraacquiredthepropertyasjointtenantsbydeedfromKangaroo.BothNora   andNicksinterestwereconveyedatthesametimeandinthesamewithrightsforeachwith   shareoftheland.ThefactsdonotstatethatNickandNoraweremarriedandnowordsof p survivorshiprightswerestatedsoNickandNorawillbeviewedastenantsincommonwitha \ interestinthelandthatdoesnotautomaticallytransfertotheotherupondeath. H Nickvs.Nora  p     Norahasarighttoleasethelandandkeepanyprofitsunlessitdoesntinterferewith H Nicksinterestintheland.ItisconceivablethatacourtmayallowNoratokeepthe$10,000in 4 annualrentsincesheisrentingonly5ofthe20acresandespeciallyifsheispayingallthetaxes   andotherexpensesforupkeepoftheland.ShemayhoweverbeliabletoNickforotherdamages   discussedbelow.  Nickvs.Thinman      TheThinmansacquiredaleaseholdinterestasaresultoftheiragreementwithNora.As X  such,theThinmansinterestinthelandterminatesupontheterminationofthelease.Therefore, D! Mrs.Thinmandidnotacquireanyadditionalinterestinthelanduponherhusbandsdeath(no 0"  rightsofsurvivorship).Inaddition,Mrs.Thinman(Mrs.T)andherloverBunyan(B)are #l! preventedfromcommittingwasteofthepropertyandareliableforalldamagestotheland $X" resultingformthewaste.Bunyanschoppingofthetreesforlumbermaybeconsideredwaste,as $D # hewasnotauthorizedtocutthelumberandthecuttingwasforprofitandnotforreasonable %0!$ domesticuseoftheland.Assuch,Mrs.TandBareliablefordamagesandwouldhavetopaythe &"% $50,000toNickandNora. '#&     IwouldadviseNickto_seek_ԀaninjunctionenjoiningMrs.TandBfromcuttinganymore )$( timber.IwouldalsoadvisehimtosuethemandalsoNoraifshenegligentlypermittedtheuse, |*%) for$50,000indamagesandotherdamagesasappropriate.IwouldfurtheradviseNicktoseeka h+&* partitionofthelandwithtoNoraandtohim. T,'+ Ї_______________________________________________________________________________________>XXXX_  ?    >&x%X>X&< %%>&xA& % %&<    AX"X %A&#XXXAX"#>XXXX?Î  QUESTION9?Îď  KԌ  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X       OnJanuary1,2006,PhilsbarnandmilkingparlorinWicomicoCounty,Marylandwas  severelydamagedbyfire.Investigationbythefiremarshalsofficedeterminedthatthefirewas t ignitedbyashortcircuitinthebarnselectricalsystemwhichhadbeencompletelyrewiredin ` November2005byDave,alicensedelectrician.Philobtainedarepairestimatefromaqualified L  builderintheamountof$200,000. 8   XOnApril1,2006,Phil,throughhisattorney,filedsuitagainstDaveintheCircuitCourtof  ` WicomicoCountyseekingjudgmentagainstDaveintheamountoftheestimatedmonetaryloss.  L    8  DavewaspropertyservedwithprocessonApril7,2006.AsofMay9,2006,Davehad $  notfiledanyresponsivepleading.      OnMay15,2006,Philsattorneyfiledamotionwiththecourtrequestinga judgmentby   default.OnMay20,2006,thecourtenteredan orderofdefaultandonthesamedate,theclerk   mailedtoDavesaddressanoticeinforminghimofthedateofthedefaultorderandadvisinghim p oftherighttomovetovacatetheorderwithin30daysfromitsentry. \  H Davefailedtorespondtothenotice,andonJune30,2006afterahearing,thecourt 4 directedtheentryofjudgmentagainstDaveintheamountof$200,000.OnJuly7,2006,Dave  p soughtlegalcounsel.  \  H @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"#>XXXX@  ݀Onthebasisofthesefacts,what,ifanyaction,canDavesattorneytaketoavoid 4 paymentofthejudgmentasenteredbythecourt?@݌   Ќ  >XXX>X>XXX>X>XXX>X>XXX>X    XX  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"ɘ#>XXXX@  @݌   Ќ  >XXX>X>XXX>X>XXX>X>XXX>X    XX    @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"ʛ#>XXXX@(  REPRESENTATIVEANSWER1@(l݌  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X    XX    @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX";#>XXXX@  @݌  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X    XX    @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"Ԡ#>XXXX X@2    PursuanttoRule2613(d),thedefendantmaymovetovacatetheorderofdefaultwithin  30daysafteritsentry.Themotionshallstatethereasonsforthefailuretopleadandthelegaland l factualbasisforthedefensetotheclaim.There,theclerkenteredtheorderofdefaultjudgment X  onMay20,2006.Davehad30daysfromthedateofentrytomovetovacatetheorder;Davehad D! untilJune20,2006tovacatetheorder.GiventhatDavehassoughtlegalcounselonJuly7,more 0"  thantwoweekslaterthanthe30dayperiod,Davecannotproperlyfileamotiontovacatethis #l! order._@2݌ $X" Ќ  >XXX>X>XXX>X   X  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"E#>XXXX X@G  @G݌ $D # Ќ  >XXX>X>XXX>X   X  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"Z#>XXXX X@    PursuanttoRule2613(f),ifamotionwasnotfiledunderSection(d)above,asisthecase %0!$ withDave,thecourtmay,uponrequest,enterajudgmentbydefaultthatincludesadetermination &"% astoliabilityandallreliefsought.However,thecourtmustbesatisfiedthatithassubjectmatter '#& andpersonaljurisdictionandthatthenoticeofsubsection(c)ofthisrulewasmailed.Onthese (#' facts,Davewasproperlyservedwithprocess,thecourthadsubjectmatterjurisdictionasitwasa )$( matterincontroversyofgreaterthan$25,000,theactionwasfiledinthepropercourt!thecounty |*%) wherethepropertyislocatedandDavefailedtorespond.Thus,thejudgmentbydefaultisvalid.@۪݌ h+&* Ќ  >XXX>X>XXX>X   X  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"#>XXXX X@  @L݌ T,'+ Ќ  >XXX>X>XXX>X   X  _@  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX" #>XXXX X@L    PursuanttoRule2613(g),adefaultjudgmententeredincompliancewiththisruleisnot  subjecttothe_revisory_ԀpowerunderRule2535exceptastothereliefgranted.Therefore,  pursuanttoRule2535(a),Davesattorneymayfileamotionwithin30daysoftheentryofthe  judgmenttochallengethereliefgranted,butnotthejudgmentitself.Becausethejudgmentwas t enteredonJune30,2006,DavemayproperlyfileunderthisRuleuntilJuly30,2006,challenging ` the$200,000ofreliefgrantedtoPhil.Davesattorneymustthereforemakeagoodfaithargument L  thattheawardwasexcessiveorthatthebuildersvaluationofthebarnwasuninformedifheseeks 8  tohavethejudgmentmodifiedorreduced.However,thejudgmentagainstDavewill_stand.@L݌ $ t Ќ  >XXX>X>XXX>X   X  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"_#>XXXX X@K  @K݌  ` Ќ  >XXX>X>XXX>X   X    #XXX>X^#>XXXX REPRESENTATIVEANSWER2   L  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"#>XXXX@  @b݌  8  Ќ  >XXX>X>XXX>X>XXX>X>XXX>X    XX  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"1#>XXXX X@    Davewouldnotbeabletoavoidpaymentofthejudgmentbutcanseektohavetheamount   ofthereliefgrantedreduced.DavewasproperlyservedonApril7,2007pursuanttoRule1321   byservingthepleadingonhimathislastknownaddress.Generally,apartyhas30daysto   answeracomplaint.Davedidnotanswerthecomplaintwithin30daysandPhilproperly   requestedthecourtenteradefaultjudgmentonMay15,2006pursuantto2613(b).Thecourt   ordereddefaultonMay20,2006bysendingnoticetoDaveandgivinghim30daystoreply l pursuanttoRule2613(c).AtthatpointDavehad30daystovacatetheorderofdefaultin X accordancewithRule2613(d).SinceDavedidnotsubmitsuchamotiontovacate,thecourt D properlyenteredjudgmentagainstDaveonJune30,2007.@ս݌ 0 Ќ  >XXX>X>XXX>X   X    @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"#>XXXX X@  @݌ l Ќ  >XXX>X>XXX>X   X  @  XX   >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"#>XXXX X@    ThedefaultjudgmentwouldnotbesubjecttorevisionunderRule2535(a)becauseRule X 2613(g)considersentryofjudgmentasafinaljudgment,andexplicitlyprohibitsrevisingthe D judgment.However,Rule2613(g)doespermitthecourttouseits_revisory_Ԁpower astothe 0 reliefgranted.Inotherwords,Daveisunabletorevisethejudgmentagainsthimthatheowes  Philsomeamountofdamages.ButDavecanseektorevisethereliefgranted!whichinthiscase  is$200,000.Davecouldarguethattheestimateforthe$200,000wastoohighandsubmit  evidenceastothefairmarketvalueofwhattheproperdamagesshouldbeinthecase.Thus,the  judgmentagainstDavewillremainbuttheamountofthejudgmentcanbechanged.@݌ | Ќ  >XXX>X>XXX>X   X  @  XX  >XXX>X>XXX>XX8XX>XAX"XXX8    #XXXAX"#>XXXX@  @݌ h Ќ  >XXX>X>XXX>X>XXX>X>XXX>X    XX   P  #XXX>X䬰# 8!  $"t   #`!  #L"  $8 #  %$!$  &"%  '"&  (#'  )$( >XXXX    p*%)  X+&*  D,'+ QUESTION10   U  _Owings_ԀMills,Marylandreceived20inchesofsnowonenight.At9a.m.ontheverynext  day,Oscarwenttothegrocerystoretopurchasesomemilkandbread.Oscarwalkedalongthe p sidewalk,whichhadbeenshoveled,untilhereachedthestretchofsidewalkinthefrontofMarias \ housewhichhadnotbeenshoveled.BecausethesnowonthesidewalkinfrontofMariashouse H  waspiledhigh,Oscardecidedtowalkintothestreet. 4    p AsOscarbegantowalkonthestreet,heslippedalittleonsomeice,butcontinuedon.  \ Then,suddenly,Oscarlosthisfootingonsomeiceonthestreetandfell.Atthesameinstant,  H  Elmo,whowasdrivingaSesameCompanyvan5milesoverthepostedspeedlimit,wasunableto  4  stopandcollidedwithOscarinjuringhim.      ElmowasonhiswaytopickuphisfriendDorothytogoskiing.Burt,themanagerof   SesameCompany,knewthatElmohadahabitoftakingthecompanyvanoutforpersonaluse,   andhadrepeatedlywarnedElmonottousecompanyvehiclesforpersonalusebecauseitwas   againstthewrittencompanypolicy.Elmohadavalidlicenseandhadneverhadanaccident l before. X  D    ` AnalyzeboththepossibletheoriesofliabilitythatcanbebroughtbyOscar 0 andanydefensestothoseclaims. l  X    @`  @  @  @h  @  @ REPRESENTATIVEANSWER1 D  0 <(r r4 <DLX<  Oscarv.Maria.      OscarmaysueMariabecauseshedidnotshovelhersidewalkandeveryoneelses  sidewalkwasshoveled.Oscarwillarguethatthismadehimwalkintothestreet.ButOscarssuit  willprobablynotworkbecausethiswasnottheproximatecauseofhisinjury"Elmohitting | Oscarwithhiscar.OscardidnotfallonthesidewalkinfrontofMariashouse.Hegothitbya h carashewalkeddownthestreet(presumablyafterpassingMariashouse).Mariawillalsoargue T  thatOscarassumedtheriskofgettinghitwhenhewalkedintothestreetfullofsnowandice. @!   ,"|  Oscarv.Elmo. #d! f @  $P"     OscarwillsueElmoforhittinghimwiththecar.Elmowilltrytoarguecontributory $< # negligenceandassumptionofriskwhichareacompletebarinMaryland.Elmowillarguethat %(!$ Oscarassumedtheriskandwascontrib.becausehewalkedintoasnowingstreet.Heeven &"% slippedandalmostfell.OscarwillcounterthatElmohadtheLastClearChancetoavoidthe '#& accidentifhewaspayingattention.ThefactthatElmowasgoing5milesoverthespeedlimitis (#' notnegligenceperse,butisevidenceofnegligence. )$(   t*%)  \+&*  H,'+ Oscarv.SesameCo.        OscarwillalsotrytosueSesameunderthetheoryofvicariousliabilitybecause  ElmowasanemployeedrivingaSesametruck.However,Elmoappearstobeonafrolic,notin t thescopeofhisemploymentbecausehewasgoingtogoskiingwithDorothy.Thus,Oscarssuit ` againstSesamewillprobablynotwork.Also,Sesamecanarguecontrib.andassumpofrisklike L  Elmo,andOscarcanargueLastClearChance.OscarwillalsoSesamedirectlyfornegligent 8  entrustment.However,Elmowastoldnottousethecompanycarforpersonaluse.Sesameeven $ t hadawrittencompanypolicy.Moreover, Elmohadavalidlicenseandhadneverhadan  ` accidentbefore.Thus,thereisprobablynobasistosueSesame,becausetheywerenotnegligent  L  inentrustingElmothecar.Butthisisaquestionforthejury.  8    $     REPRESENTATIVEANSWER2           OscarcanbringsuitagainstOwingsMillsandMariaforfailingtoshovelthesnow. |  BothMandOwingsMillswilldefendbyarguingthattheydidnothavenotice"enoughtimeto h removethesnow.ThisargumentmaybemoreproblematicforMariabecauseitseemsotherson T herblockhadalreadyshoveledthesnow.However,bothwillarguethatthesnowonthesidewalk @ didnotcauseOscarsinjuries.Rather,itwasElmohowhitOscarwithavaninthestreet.Both ,| couldalsoarguecontrib.andassumptionofriskbecausenoonetoldOscartowalkintothestreet h whentherewas20inchesofsnowontheground. T  @ OscarcansueSesame(undervicariousliability)andElmofornegligencebecauseElmo , whowasgoing5milesoverthespeedlimithitOscarwiththevan.Theywillalsoaguecontrib.  andassumptionofrisk,butOscarwillarguethatElmohadthelastclearchancetoavoidhitting  him.    SesamewillarguethatitisnotvicariouslyliablebecauseElmowasgoingtopickup  Dorothy togoskiingwhenhehitOscar.ThisisnotfurtheringSesamesbusiness.Thus, x Sesamewillnotberesponsible.Infact,theywarnedElmonottousethevanforpersonaluse. d AlthoughOscarmightalsobringaclaimagainstSesamefornegligententrustment,Sesamewill P  arguethatElmohadavalidlicenseandhadneverbeeninanaccidentbefore.Thus,hispersonal X3#! $P"  %(!$  '#&  )$(  `+&* Ї   5#$%&'()*+(005#$%&'()*+M;:XXXX NFEBRUARY2007  _MULTISTATE_ԀPERFORMANCETEST(_MPT_)     t REPRESENTATIVEANSWER1  `   [Letterhead] L   8    DRAFTLETTERfromApplicant $ t   ForreviewbyMichaelSimmons  `   Re:_Glickman_Ԁv.PhoenixCycles,Inc.  L      8      February27,2007 $     DearMs.Snow:         ` Asyouknow,wehavebeenretainedbyGeorge_Glickman_Ԁ!formerVicePresident   ofBicycleMarketingatPhoenixCycles,Inc.( Phoenix).Mr._Glickman_srightsunderthe p _FMLA_Ԁwereviolatedunder_Franklyn_ԀlawwhenhewasdemoteduponhisreturntoPhoenixon \ January18,2007,from_FMLA_Ԁleave.Mr._Glickman_Ԁseekstoberestoredtohisformerpositionor H anadequateequivalentposition. 4   p  ` Ourclientiswillingtoresolvethisissuewithoutlitigation.However,weare  \ confidentthatwewouldprevailattrialforthereasonsoutlinedbelow.Iflitigated,Phoenixwould H beresponsibleforallpotentialrelief!identifiedanddiscussedatthecloseofthisletter. 4    #:&x%X:X䬖^#: %:&x# : #:   "#" X 9%` ` <DLX9    ?( 4 <DL` ` X?#t2  I  .3      #:&x%: #:XX%:&x#XXX:XR#:XXXX_MR_._GLICKMAN_ԀCANESTABLISHTHEELEMENTSFORAPRIMAFACIE   VIOLATIONSINCEHE:WASENTITLEDTOLEAVE;SUFFEREDANADVERSE  EMPLOYMENTDECISION;ANDTHEREISACAUSALCONNECTIONBETWEEN  HISTAKINGLEAVEANDTHEADVERSEACTION(SEE,RIDLEYV._SANTACROCE_  _GENL_Ԁ_HOSP_.(15THCIR.2002))#t݌ l Ќ  XX X  ,<( 4 <DLX< X   ,?( 4 <DL4X?The_FMLA_,29U.S.C.2612,entitlesaneligibleemployeetotwelveworkweeksofleave @! peryearfor,amongotherreasons,a serioushealthconditionand theplacementofasonor ,"|  daughter...foradoption.Mr._Glickman_Ԁtookatotalofnineweeksleavetorecoverfroma #h! seriousstrokeandthentocareforhisnewlyadoptedchild. $T"  $@ # Uponreturnhowever,Mr._Glickman_Ԁwasdemotedtocoordinator.Thereisevidencethat %,!$ thisdemolitionoccurredbecauseCEOJohnPearsallwasdisappointedinMr._Glockman_s &"% decisiontobeafathertohisnewbaby,andbecauseof stresscausedbyMr._Glickman_s '#& justifiedabsence. (#'    )$( Thus,Mr._Glickman_Ԁcanmakeoutaprimafaciecaseforan_FMLA_Ԁviolationunder29 x*%) U.S.C.2614andRidleyv._Santacroce_Ԁ_Genl_ԀHosp. d+&*   X P,'+ #XXX:XC#:XXXX 8,-./01234(005#$%&'()*+ ","  9%` ` <DLX9   ?( 4 <DL` ` X?,2  II  .3      #XXX:X>#:XXXX_MR_._GLICKMAN_ԀSUFFEREDFROMHISDEMOTION,WHICHCARRIED  WITHITASUBSTANTIAL,NOTDE_MINIMIS_,CHANGEFROMHISPRIORDUTIES  ANDSTATUS.,݌  Ќ  XX   XUnder2614(a)(1)(B),anemployeewhoreturnsfrom_FMLA_Ԁleavemustbegranteda ` restorationofhisformerpositionor anequivalentposition[with]equalorsubstantiallysimilar L  conditions(Ridley).Here,Mr._Glickman_ԀwasformerlyVicePresident,inchargeofsupervising 8  marketresearch,monitoringretailers,developingnewproductsandpresentingsuchto $ t engineering.Healsocoordinatedproductreviews,seminars,adshows,andsupervisedtwo  ` marketingassistantsandsupportstaff.  L      8  Uponhisreturn,Mr._Glickman_Ԁsuddenlyheldthetitleof Coordinator,hadlosta $  markingassistantandonestaffmemberandhadtoreporttoSue_Cowen_Ԁ!recentlypromoted,and   Mr._Glickman_sformerpeer.Hemustsubmitmarketingplanstoherthatheusedtodraftalone   andMs._Cowen_ԀisalsoinchargeofMr._Glickman_s Retrobikeline.      WhileMr._Glickman_spayandbenefitsareofficiallyunchanged,Ms._Cowen_Ԁisnowin p linefora$25,000bonuspromisedMr._Glickman_. \  H   Thiscaseiscomparabletothe15thCircuitCourtcase,Ridley,inwhichthecourtheldthat 4 anursewasentitledtoprevailonsummaryjudgmentagainstheremployer!hospitalwhen,upon  p returntowork,hersupervisorydutieshadbeeneliminated.TheCourtfoundthatan equivalent  \ positionisonethatisvirtuallyidenticalnotonlyinopportunitiesforpayandpromotion(e.g.,a H $25,000bonus),butin privileges,perquisites,andstatus. 4      Here,Mr._Glickman_Ԁhassufferedaseverelossinstatus,andhedoesnotholdaposition   thatisvirtuallyidenticalorsubstantiallysimilartohispreviouspost.    X#XXX:Xc#:XXXX","  9%` ` <DLX9   ?( 4 <DL` ` X?,U 2  III  .3      #XXX:X6 #:XXXX PHOENIXCANNOTPROVETHATITHAD LEGITIMATEBUSINESS  REASONSFORDEMOTING_MR_._GLICKMAN_.,U V ݌ p Ќ  XX   XTheCourtinRidleyalsoheldthatanemployeemayonlybedemotedorterminatedupon H! returnfor legitimatebusinessreasonsthatarenotcausallyconnectedtotheleave.Mr. 4"  _Glickman_Ԁwastoldthatithadbeen discoveredduringhisabsencethatPhoenixwas  #p!  overstaffed,andthat managementconsultantshadrecommendedchangesaffectinghisjobas  $\" VicePresident. $H #    %4!$ However,themanagementreporthadbeencompletedinJuneof2005ayearandahalf & "% priortothis discoveredproblem.Moreover,therecommendationthatmarketingdivisionsbe ' #& mergedwasaccompaniedbyarecommendationthatPhoenixfirstidentifyamanagerwiththe (#' experienceandcreativitytoleadthenewdivision.ThereisevidencethatSue_Cowen_Ԁisstressed )$( byhernewrole.Mr._Glickman_,whowasnotevengivenanopportunitytointerview,isconfident *%) thathecouldhavebeenthisnewmanager. l+&* _ X,'+ N N N  Infact,onNovember24,2006,CEOPearsallpraisedMr._Glickman_Ԁpubliclyinthe   FranklinBusinessNews!attached.    X#XXX:X #:XXXX","  9%` ` <DLX9   ?( 4 <DL` ` X?,2  IV  .3      #XXX:X䬯#:XXXX WHILE_FMLA_ԀPERMITSEMPLOYERSTONOTREINSTATEHIGHLY t COMPENSATEDEMPLOYEES,THISISPERMITTEDONLYWHERE d  SUBSTANTIALANDGRIEVOUSECONOMICINJURYISTHREATENEDAND P  ADEQUATENOTICEISPROVIDEDTOTHEEMPLOYEE,݌ <  Ќ  XX   XPhoenixcannotassertthatany substantialandgrievouseconomicinjurywasavoidedby  d thedemotionofMr._Glickman_.Indeed,Mr._Glickman_ssalaryandbenefitsremainedunchanged.  P  Moreover,ifMr.Pearsallseekstorelyonthemanagementconsultantsreport,itshouldbenoted  <  that complacency!theworryexpressedbyconsultants!doesnotriseto substantialand (  grievouseconomicinjury.    X ,<( 4 <DLX< X ,?( 4 <DL4X?InstructivehereisJonesv._Oakton_ԀSchoolDistrict,inwhichthe15thCircuitfoundsuch   injurytoexistwhereapublicschoolfacedcontractliabilityandshortfundinginthefaceof   reinstatingaformerprincipal.Asthecourtsaid,apublicentitylikeaschool cannotraiseits t pricestomakeupfortheshortfallthatreinstatementwouldhavecaused.Phoenixclearlydoes ` notsharethisthreat. L  X ,<( 4 <DLX< X ,?( 4 <DL4X?Moreover,under2614(b)(1)(B)of_FMLA_,anemployeemustreceivenoticeoftheintent $t oftheemployertodenyrestoration...atthetimetheemployerdeterminesthatsuchinjurywould ` occur. L  8 Here,Mr._Glickman_ԀwasnotifiedonDecember19,2006,notthatPhoenixintendedto $ denyrestoration,butthathewouldreceiveatelephonecallto discussthematterafterPhoenix  determinedwhetherrestorationwas feasible.      Thisisinadequatenotice,andthusPhoenixcannotrelyonthisexceptionto_FMLA_Ԁto  defenditsactions. p  \  Finally,the_FMLA_Ԁliststhepossiblerelieftowhichemployeeswhosufferan_FMLA_ H! violationareentitled.Thesedamagesincludewages,salary,benefits,orothercompensation 4"  deniedorlosttosuchemployeebyreasonoftheviolation.Moreover,thewrongedemployee  #p! maybeentitledto liquidateddamagesequaltothesumofthedamagesjustdescribed,aswellas  $\"  equitablerelief!e.g., employment,reinstatement,andpromotion.Thereisastrong $H # presumptioninfavorofliquidateddamages,moreover!see_Ridgley_Ԁ(Anemployermustprove %4!$ thattheviolationwasingoodfaithandthatitreasonablybelieveditsactdidnotviolate_FMLA_). & "%  ' #& ___Please_Ԁdonothesitatetocontactustodiscussthismatter. (#'  )$(  `     h   Sincerely, *%)   X   X,'+   ___________________________________________________________________________________REPRESENTATIVE_ԀANSWER2      Ms.ReginaSnow  PhoenixCycles t   2300_LeMond_ԀParkway ` Lawton,Franklin33623 L  DearMs.Snow: $ t   Iamwritinginresponsetoyourcompanysactionswithregardtomyclient,George  L  _Glickman_,followinghisnine(9)weekabsenceundertheFamilyandMedicalLeaveAct  8  (_FMLA_). $    I.  VIOLATIONOF_FMLA_      Toestablishaprimafaciecaseofaviolationof_FMLA_,entitlement,anadverse   employmentdecisionandacausalconnectionmustbeshown.Mr._Glickman_s(G)situation p fulfillsallthreerequirements. \  X a. ` Entitlement 4  X   The_FMLA_Ԁstatesthatanemployeeisentitledtoleaveunder_FMLA_Ԁoftwelve(12)weeks  \ withinatwelve(12)monthperiod,forserioushealthconditionsanduponadoptionorbirthofa H newsonordaughter.Here,Mr._Glickman_sstrokeandsubsequentadoptionentitledhimtothe 4 consecutivefive(5)weekandfour(4)weekleaveperiods,whichPhoenix(P)properlyapproved.    X b. ` AdverseEmploymentDecision   X   Apartyreturningfromleaveisentitledtoreinstatementtotheirpriorpositionorone  equivalent.Anequivalentpositionisonewithidenticalpay,benefits,conditions,substantially l similarduties,authorityandpromotionalandsalaryopportunities. X    InthecaseofRidleyv._Santacroce_ԀGeneralHospital,thesamesalarybuteliminationof 0"  supervisorydutiesandchangeinhoursequaledasubstantialchange.Here,Mr.G.loststatus #l! (workingunderavicepresidentwithlessexperiencethanhim,withnoassistantsorsupportstaff $X" tosupervise),lostaccesstoa25Kbonus,lostauthoritytodevelopmarketingplans,butretained $D # thesamesalaryandbenefits.Therefore,itisclearthatMr.G.sufferedsubstantialchangestohis %0!$ position. &"%     X c. ` CausalConnectionBetweenLeaveandChanges (#'  X   Finally,toproveaviolation,plaintiffmustshowthathisemploymentchangewascaused |*%) bythetakingoftheleave.Thepresenceofalegitimatebusinessreasonforchangeswillseverthe h+&* causalchain(Ridley). T,'+ Ї  InRidley,projectedloweradmissionsatthehospitalandtherequirementofastaff  reductioninRidleysunitwerenotadequateasalegitimatebusinessreasonwhereRidleywasthe  onlystafferusingafulltwelve(12)weekleave.Herswastheonlypositioneliminatedquickly  afterherreturn,andtheunitthereafterreturnedtofullstaffing.Here,asinRidley,the t circumstancessuggestthatthebusinessreportisashamhidingadirectrelation(causation) ` betweenemploymentchangeandleave.Mr.G.notedthathissupervisor,Pearsall,seemed L  irritatedwithGspriorityonfamily.Thereport,whicharguablysupportsthereorganizationand 8  suggestingconsolidationofthemarketingdepartmentsandareductioninsupportstaff,iseighteen $ t (18)monthsold.Intheinterim(11/06),PearsallpraisedG,giving realcredittoGforinitiating  ` theproject,statingheexpectedGtobea significantpartoftheproductlaunchandstatinghis  L  satisfactionwiththethencurrentorganizationthat enabled(Phoenix)tobealeader.  8      Thereafter,Pearsallenactedthechangesthatthereportsuggested;however,hefailedto   appointthepersonwith mostexperienceorcreativity(arguablyGwhowastherelongerand   designedthebike)favoringSue.Sueevenconfessed stressattheincreasedresponsibilities.   Further,Gsstaffwasnotcutasthereportadvisedbutmerelytransferred.Therefore,no   legitimatebusinessreasonbreaksthecausalconnection. p   II.  EXEMPTIONFORHIGHESTPAID10% H    _FMLA_Ԁallowsemployerstorefrainfromreinstatingthehighestpaid10%,where  p necessary,topreventsubstantialandgrievouseconomicinjurytothecompany,withnoticetothe  \ employee.TheinstantsituationmustbedistinguishedfromJonesv._Oakton_ԀSchoolDistrict H wherethenecessaryhiringofapermanentreplacementandpreexistingbudgetconcernsprevented 4 theschooldistrictfromrehiringPrincipalJones.Here,whileGisoneofthehighestpaid10%,   thecompanyisprofitable,oneofthe industryspremiermanufacturersandthereportwas   solicited_proactively_Ԁandnotduetocurrentfinancialdifficulties.Suewasnothired/promoted  becausenoreasonablealternativeexisted,andpayingGdoesnotresultinaneconomichardship  astheyarestillpayingthesameamountandanyshortfallcouldbemadeupinprofits,asitcould  notinaschooldistrict(Jones). l     Fortheforegoingreasons,itisclearthatthehiringofSueasVicePresidentofCombined D! MarketingwillnotrenderasubstantialandgrievouseconomicinjuryuponPhoenixuponGs 0"  reinstatement. #l!   Therefore,theexemptionforthehighestpaid10%willnotapply. $D #   III.  DAMAGES &"%    Upondeterminationofaviolationof_FMLA_,theplaintiffmaybeentitledtolostwages, (#' benefits,etc.,liquidateddamagesandequitablerelief. )$(     X a. ` LostWages,Etc. h+&*  X  T,'+   Duetotheviolation,Gshouldbeabletorecoverlostwages,thoughtheremaynotbeany  benefits,hisbonus,ifreasonablycertaintohavebeenearned,orthevalueofapotentialbonus.   X b. ` LiquidatedDamages t  X   The_FMLA_Ԁapprovesliquidateddamagesequaltothesumforlostwages,etc.Here, L  liquidateddamagesshouldbepaidduetothenature(willful)ofPhoenixsviolation. 8   X c. ` EquitableDamages/Relief  `  X   The_FMLA_Ԁallowsforequitablereliefintheformofemployment,reinstatementand  8  promotion.Here,itseemsclearthatanopportunityforpromotionwaslost,andMr.G.shouldbe $  abletorecoupthatlostopportunity.    IV.  CONCLUSION      Underthecircumstancesdescribedabove,acourtwillfindaviolationandorderreliefand p paymentofdamagesasdescribed.Therefore,toavoidlitigation,PhoenixshouldreinstateMr. \ _Glickman_Ԁto,atleast,hisformerposition. H      `     h   Sincerely,  p     #XXX:XM##&x%XX#XX%&x