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Ðdivorce,ðð€and€will€likely€not€consent.€€Thus,€Always€must€show€grounds€for€divorce.€€AdulteryÐ ¨&X" Ðand€desertion€are€both€grounds€for€an€absolute€divorce.€€Since€Nevar€moved€in€with€his€loverÐ ”'D # Ðwhile€still€married€more€than€12€months€prior€to€filing€of€divorce,€Always€may€be€able€to€meetÐ €(0!$ Ðthe€burdens€for€proving€adultery€and/or€desertion.Ð l)"% ÐÌÓ  Óò òó óÌÓM ÓÖ€RÿÿÖÌòòÐ -Ì%) ÐChild€SupportÐ P ÐóóÓ  ÓÌà  àNevarððs€threats€ð ðto€stop€paying€the€childrenððs€tuition€and€petition€the€court€for€full€custodyÐ ( Ø Ðif€Always€requested€child€support€or€alimony,ðð€is€of€no€effect.€€The€Court€will€award€child€supportÐ  Ä Ðbased€on€the€needs€of€the€children€and€the€Maryland€Child€Support€Guidelines.€€In€addition,€NevarÐ  ° Ðwill€probably€have€to€continue€to€pay€tuition€because€that€is€what€the€children€were€accustomedÐ ì œ Ðduring€the€marriage.€€Ð Ø ˆ ÐÑ  ÑÌÑ  ÑÓ  ÓòòChild€CustodyÐ °` ÐóóÌà  àWeighing€of€ð ðbest€interest€of€the€childðð€factors€for€joint€legal€custody€and/or€visitation€theÐ ˆ8  ÐCourt€will€probably€grant€liberal€visitation€for€Nevar€and€joint€legal€custody€because€Nevar€wasÐ t$  Ðthe€person€who€took€care€of€the€kids€for€the€first€several€years€of€their€marriage.€€In€fact,€AlwaysÐ `  Ðdidnððt€herself€take€care€of€the€children€when€Nevar€was€in€medical€schoolð"ðshe€hired€a€nanny.€Ð Lü  ÐAlways€will€probably€be€granted€custody€because€the€kids€lived€with€her€while€Nevar€was€offÐ 8è  Ðhaving€an€affair.Ð $Ô  ÐÓ  ÓÌòòAlimonyÐ ü¬ Ðóóà0  àÐ (#(# Ðà  àIn€MD€alimony€is€rehabilitative.€€Thus,€Always€can€argue€that€she€should€get€alimony€inÐ Ô„ Ðorder€to€help€her€find€a€job€or€return€to€school€to€be€retrained.€€She€could€also€request€òòpendente€liteóóÐ Àp Ðalimony€during€the€divorce€proceedings€since€she€left€her€job€at€Nevarððs€request.Ð ¬\ ÐÑ  ÑÌIn€addition,€Always€as€the€custodial€parent€can€get€use€and€possession€of€the€family€home€for€3€years.òòÐ „4 ÐÑ  ÑóóÌÌòòProperty€Ð Hø ÐóóÌà  àIn€Maryland€any€property€acquired€during€the€marriage€will€be€marital€property€regardlessÐ  !Ð Ðof€title.€€Gifts€and€inheritances€are€not€marital€property.€€Thus,€Nevar€and€Alwaysðð€property€will€beÐ  "¼ Ðdivided€€as€follows:Ð ø"¨ Ðà  àòòÌMaritalóó€€Ð Ð$€  ÐÌà  àThe€Columbia€home,€Mexico€vacation€home€and€a€percentage€of€Nevarððs€medical€practice.€Ð ¨&X" ÐÌà  àÌòòNot€Maritalóó€Ð l)"% ÐÌà  à€The€Rolls€Royce€(inherited)€and€the€Corvette€(gift).Ð D+ô#' ÐÌÓ  Óò òÐ -Ì%) ÐREPRESENTATIVE€ANSWER€2Ð P Ðó óÓ  ÓÌÓ XÓÓ  ÓAlways€can€obtain€an€immediate€absolute€divorce€from€Nevar€if€she€can€show€groundsÐ ( Ø Ðsuch€as€abandonment,€desertion€or€adultery.€€€Always€must€only€show€that€the€Nevar€had€theÐ  Ä Ðopportunity€to€commit€adultery€with€Rebecca.€€Always€may€be€able€to€show€desertion€andÐ  ° Ðadultery€since€Nevar€moved€in€with€his€Rebecca€for€over€a€year.Ð ì œ ÐÓ XÓÌò òòòCustodyÐ Ä t Ðó óóóÌÓ XÓAlways€should€argue€that€it€is€in€the€childrenððs€best€interest€to€continue€to€live€with€her€asÐ œL  Ðthe€primary€caregiver€because€that€is€what€they€are€accustomed.€€Nevar,€however,€was€theÐ ˆ8  Ðchildrensðð€primary€caregiver€earlier€on€and€may€be€able€to€successfully€argue€that€€for€joint€legalÐ t$  Ðcustody€and€visitation.€€The€Court€will€likely€grant€joint€custody€because€there€is€nothing€toÐ `  Ðindicate€that€Nevar€is€not€fit€to€have€custody€or€that€the€children€would€be€endangered.€€Ð Lü  ÐÓ XÓÌò òòòChild€SupportÐ $Ô  ÐÑ  ÑÌÑ  Ñó óóóÓ  ÓThe€Court€will€award€child€support€based€on€the€Child€Support€Guidelines€not€upon€what€Nevar€orÐ ü¬ ÐAlways€thinks€he€should€pay.€€Because€the€children,€who€are€school€age,€are€probably€accustomedÐ è˜ Ðto€private€school,€Nevar€will€likely€have€to€continue€paying€for€their€private€school.€€Ð Ô„ ÐÓ  ÓÌò òòòAlimonyÐ ¬\ Ðó óóóÌÓ  Ó€Even€though€Nevar€told€his€ð ðwife€to€quit€her€job€because€he€would€support€her€and€the€children,ððÐ „4 ÐAlways€will€probably€not€be€entitled€to€alimony€forever.€€She€clearly€is€employable€because€she€wasÐ p  Ðemployed€before€Nevar€became€a€doctor.€€Always€should€request,€however,€both€pòòendente€liteóó€andÐ \  Ðrehabilitative€alimony€until€she€can€get€another€job€or€more€education€and€training.Ð Hø ÐÓ  ÓÌÌò òòòProperty€divisionÐ  "¼ ÐÑ  ÑÌÑ  ÑÓ £Óó óóóAll€the€property€acquired€during€Alwaysðð€marriage€will€be€divided€as€marital€propertyÐ ä#” Ðincluding€the€homes€in€Columbia€and€Mexico.€Always€will€also€be€entitled€to€a€percentage€of€theÐ Ð$€  Ðvalue€of€Nevarððs€practice€at€the€time.€€€This€may€be€made€by€Nevar€as€a€monetary€award€as€partÐ ¼%l! Ðof€the€divorce.€€€Always€may€also€be€giving€the€use€and€possession€of€their€home€for€3€years.€Ð ¨&X" ÐThe€Rolls€and€the€Corvette€are€not€marital€property€because€they€were€gifts€to€Nevar.Ð ”'D # ÐÑ  ÑÐ €(0!$ ÐÑ  ÑÓ £ÓÌÌÌò òÓ  ÓÌÐ -Ì%) ÐQUESTION€€2ó óÐ P ÐÓÆ"ÓÌÓ  Óà  àð ðScrewdriversðð€is€a€popular€Baltimore€City€nightclub€with€a€reputation€for€large,€boisterousÐ ( Ø Ðcrowds.€To€help€maintain€order€and€safety€in€the€crowded€bar,€Screwdrivers€employs€securityÐ  Ä Ðpersonnel€whose€function€is€to€exhibit€a€conspicuous€presence€to€deter€disturbances€among€theÐ  ° Ðpatrons.€The€security€personnel€are€all€over€6€feet€tall€and€weigh€over€250€pounds.€They€also€all€wearÐ ì œ Ða€distinctive€shirt€with€the€Screwdrivers€logo€and€the€word€ð ðSecurityðð€in€bold€letters.€Although€theÐ Ø ˆ Ðsecurity€employees€are€not€permitted€to€hit€or€kick€anyone,€they€are,€depending€upon€the€situation,Ð Ä t Ðauthorized€to€grab€boisterous€patrons,€separate€those€involved€in€altercations€and,€if€necessary,Ð °` Ðphysically€eject€those€patrons€from€the€nightclub.Ð œL  Ðà  àÌà  àOn€July€25,€2008,€Peter€Plaintiff€was€celebrating€the€completion€of€the€Maryland€BarÐ t$  ÐExamination.€On€that€night,€Peter€and€his€friends€arrived€at€Screwdrivers.€Within€a€short€time,€PeterÐ `  Ðwas€intoxicated.€While€he€was€intoxicated,€Peter€started€arguing€and€making€obscene€gestures€to€aÐ Lü  Ðfemale€patron.€Security€personnel€told€Peter€to€stop€or€he€would€have€to€leave.€Ten€minutes€later,Ð 8è  ÐPeter€repeated€the€behavior.Ð $Ô  Ðà  àÌà  àPeter€awoke€in€a€hospital€the€next€day€with€injuries€consistent€with€a€severe€beating.€He€hasÐ ü¬ Ðno€memory€of€the€attack€or€of€leaving€Screwdrivers.€€Ð è˜ Ðà  àÌà  àPeter€filed€a€lawsuit€alleging€battery€against€Screwdrivers€in€the€Circuit€Court€for€BaltimoreÐ Àp ÐCity.€€Witnesses€testified€they€saw€three€large€persons€wearing€the€distinctive€Screwdrivers€SecurityÐ ¬\ Ðshirts€carry€Peter€to€the€Screwdriversðð€parking€lot€where€they€beat€and€kicked€him€until€he€wasÐ ˜H Ðunconscious.€€The€juryððs€verdict€awarded€Peter€$1,000,000€in€compensatory€damages€and€$300,000Ð „4 Ðin€punitive€damages.€€Judgment€was€duly€entered€against€Screwdrivers€in€those€amounts.Ð p  Ðà  àÌà  àScrewdrivers€appeals€the€judgment,€arguing:€(1)€Peter€did€not€prove€Screwdriversðð€employeesÐ Hø Ðcommitted€the€attack,€(2)€if€the€assailants€were€Screwdriversðð€employees,€it€cannot€be€held€liable€forÐ 4 ä Ðintentional€torts€of€employees€committed€outside€the€scope€of€their€employment€and€(3)€it€should€notÐ  !Ð Ðbe€held€vicariously€liable€for€punitive€damages€for€the€willful€torts€of€employees.€Ð  "¼ ÐÌà  àò òÌà  àDiscuss€Screwdriversðð€likelihood€of€success€on€appealó ó.€ò òExplain€your€answer€fully.ó óÐ Ð$€  ÐÓ  ÓÌÓ]ÓÓ  Óò òREPRESENTATIVE€ANSWER€€1ó óÐ ¬&\" ÐÓ§.ÓÓÓ1.à  àAs€to€whether€Peter€successfully€proved€that€Screwdriversðð€employees€committed€theÐ „(4!$ Ðattack€against€Peter,€Screwdrivers€will€likely€lose€their€appeal.€Screwdrivers€may€claim€that€asÐ p) "% ÐPeter€has€no€memory€of€the€attack€and€cannot€identify€his€attackers€that€he€has€not€successfullyÐ \* #& Ðidentified€the€Screwdriversðð€employees€as€his€attackers.€However€the€facts€indicate€that€three,Ð H+ø#' Ðpresumably€independent,€witnesses€testified,€with€all€penalties€of€perjury€attaching,€that€they€sawÐ 4,ä$( Ðthree€persons€matching€the€description€of€the€Screwdriversðð€security€personnel€commit€the€attack.Ð  -Ð%) ÐScrewdrivers€will€argue€that€as€the€witnesses€did€not€testify€that€they€had€personal€knowledgeÐ P Ðthese€persons€were€in€fact€Screwdriversðð€security€personnel€it€has€not€been€proven€that€they€were.Ð <ì ÐHowever,€a€jury€may€determine€from€circumstantial€evidence€the€facts€pertaining€to€a€crime.Ð ( Ø ÐAdditionally,€an€appeals€court€may€not€review€the€findings€of€fact€made€by€the€jury€unless€clearlyÐ  Ä Ðerroneous.€Here,€it€was€reasonable€for€the€jury€to€determine€that€the€three€persons€who€theÐ  ° Ðwitnesses€testified€to€seeing€beat€Peter€were€in€fact€the€Screwdriversðð€security€personnel€due€toÐ ì œ Ðtheir€clothing,€size€and€location.€The€three€persons€were€all€ð ðlargeðð€like€the€6€feet€tall€and€2501bsÐ Ø ˆ Ðsecurity€personnel€wore€Screwdriversðð€ð ðuniformsðð€and€were€seen€committing€the€crime€onÐ Ä t ÐScrewdriversðð€property.€It€is€clearly€reasonable€for€the€jury€to€have€determined€the€persons€to€beÐ °` ÐScrewdriversðð€security€personnel€and€the€appeals€court€should€not€overturn€this€determination.€Ð œL  ÐÐ Ð2.à  àOn€the€second€argument€of€Screwdrivers,€the€appeals€court€may€make€a€determination€ofÐ t$  Ðlaw€but€again€may€review€only€for€a€clearly€erroneous€decision.€While€an€employer€may€not€beÐ `  Ðheld€liable€for€the€intentional€torts€of€its€employees€committed€outside€of€the€scope€of€theirÐ Lü  Ðemployment,€where€the€employeesðð€scope€of€employment€includes€similar€acts€of€violence€andÐ 8è  Ðinherently€and€specifically€requires€the€use€of€force€in€carrying€out€their€duties,€the€employer€mayÐ $Ô  Ðbe€held€liable€for€those€actions€that€were€a€foreseeable€outgrowth€from€the€employment.€It€isÐ À Ðarguably€foreseeable€by€Screwdrivers€that€its€security€personnel€would€injure€someone€andÐ ü¬ Ðcommit€battery.€Additionally,€the€extent€of€the€battery€was€foreseeable€given€the€parameters€withÐ è˜ Ðwhich€it€chooses€its€security€personnel.€As€Screwdrivers€only€hires€employees€who€are€very€largeÐ Ô„ Ðand€are€authorized€to€use€force,€it€is€arguable€the€employees€are€inherently€violent€and€any€ofÐ Àp Ðtheir€violence€is€foreseeable.€Here€the€jury€has€made€a€determination€that€it€was€in€factÐ ¬\ Ðforeseeable€by€Screwdrivers€that€its€security€personnel€would€injure€someone€by€battery.€As€such,Ð ˜H Ðthe€battery€on€Peter€would€fall€within€a€foreseeable€outgrowth€of€the€scope€of€the€securityÐ „4 Ðpersonnelððs€employment€and€Screwdrivers€should€be€held€liable€for€those€actions.€Therefore,€it€isÐ p  Ðunlikely€the€appeals€court€would€overturn€this€determination.Ð \  ÐÐ Ð3.à  àAs€discussed€above€in€#2,€it€was€reasonably€foreseeable€that€Screwdriversðð€personnelÐ 4 ä Ðwould€commit€such€a€tort.€As€such,€Screwdrivers€may€be€held€vicariously€liable€for€the€damagesÐ  !Ð Ðresulting€therefrom.€Such€damages€may€include€punitive€damages€where€as€here,€the€victim€hasÐ  "¼ Ðsuffered€extreme€injury€that€is€likely€to€have€lasting€effects.€Therefore,€it€is€unlikely€the€appealsÐ ø"¨ Ðcourt€would€find€in€favor€of€Screwdrivers.Ð ä#” Ðà  àà ` àà ¸ àà  àÌÓö.Óò òÓ  ÓREPRESENTATIVE€ANSWER€€2ó óÐ ¼%l! ÐÓ–?ÓòòÓÓPart€1óóÐ ”'D # ÐÌOn€appeal,€absent€clear€error,€the€Court€will€defer€to€the€record€and€evidence€therein,€since€theyÐ l)"% Ðdo€not€have€the€opportunity€to€observe€the€witnesses€in€court.€In€this€case,€the€witnesses€(plural)Ð X*#& Ðtestified€that€they€saw€three€large€persons,€wearing€the€distinctive€Screwdriverððs€(S)€SecurityÐ D+ô#' Ðshirts,€carry€Peter€(P)€to€Sððs€parking€lot,€where€they€beat€and€kicked€him€until€he€wasÐ 0,à$( Ðunconscious.€Moreover,€S€has€a€reputation€for€large€boisterous€crowds,€and€therefore€employsÐ -Ì%) Ðconspicuous€security€personnel€who€are€all€large€(all€over€6€feet€tall,€250€lbs)€and€all€wear€theÐ P Ðdistinctive€shirts€with€the€word€ð ðSecurityðð€in€bold€letters,€as€identified€by€the€witnesses.Ð <ì ÐÑ  Ñ€.€Ð ( Ø ÐTherefore,€no€clear€error€has€been€demonstrated,€and€the€appellate€court€will€defer€to€the€trialÐ  Ä Ðcourt€on€this€issue€and€uphold€the€judgment.Ð  ° ÐÑ  рРÐòòPart€2Ð Ø ˆ Ðóó€Ð Ä t ÐòòVicarious€liability/respondeat€superioróó.€€Under€the€doctrine€of€respondeat€superior,€an€employerÐ °` Ð(S)€will€be€held€liable€for€the€acts€of€its€employees€who€act€in€the€scope€of€their€employment.Ð œL  ÐHere,€S€is€arguing€that€these€were€intentional€torts€committed€outside€the€scope€of€theÐ ˆ8  Ðemployeesðð€jobs.€Normally,€a€frolic€(or€detour)€of€an€employee€will€relieve€(or€at€least€mitigate)Ð t$  Ðan€employerððs€liability,€as€will€gross€negligence€or€intentional€torts.€Here,€however,€theÐ `  Ðemployees€function€was€to€exhibit€a€òòconspicuous€presenceóó,€they€were€all€very€òòlargeóó€(see€above),Ð Lü  Ðand€„€although€not€permitted€to€ð ðhit€or€kickðð€anyone€„€they€were€òòauthorized€to€grab€boisterousÐ 8è  Ðpatrons€separate€those€involved€in€altercations€and€physically€eject€themóó€from€the€club€(e.g.,€takeÐ $Ô  Ðthem€outside)€if€necessary.€Thus,€the€scope€of€the€employeesðð€duties€inherently€involved€physicalÐ À Ðaltercations€with€patrons.€As€a€result,€S€cannot€argue€that€they€(S)€should€not€be€held€vicariouslyÐ ü¬ Ðliable€due€to€them€(the€security€personnel)€acting€out€of€the€scope€of€their€employment.Ð è˜ ÐÑ  рРÐThe€appellate€court€will€uphold€the€trial€court€on€this€issue.Ð Àp ÐÑ  рРÐòòPart€3€Ð ˜H ÐóóÐ ÐPunitive€damages€are€not€normally€allowed€absent€gross€negligence€or€extremely€outrageousÐ p  Ðconduct€such€as€reckless,€malicious€or€wanton€disregard€for€the€safety€of€others.€Here,€theÐ \  Ðsecurity€personnel€ð ðbeat€and€kicked€[P]€until€he€was€unconsciousðð.€€Thus,€punitive€damages€areÐ Hø Ðappropriate.€It€is€also€worth€noting€that€the€punitive€damages€of€$300K€are€less€than€theÐ 4 ä Ðcompensatory€damages€of€$1M.Ð  !Ð ÐÑ  рРÐRegarding€the€willfulness€of€the€employeesðð€torts,€this€does€not€absolve€S€from€liability,€asÐ ø"¨ Ðaddressed€in€Part€2€above.Ð ä#” ÐÑ  рРÐòòConclusion€Ð ¼%l! ÐóóÐ ÐFor€the€reasons€stated€above,€Screwdrivers€is€òòunlikely€to€prevail€on€the€appealóó€for€any€of€the€threeÐ ”'D # Ðissues.Ð €(0!$ ÐÌÌÌÑ  Ñò òÓ  ÓÓÓÓÓÔ‡!XýÌXXXýÌÔÌÐ -Ì%) ÐQUESTION€€3ó óÐ P ÐÓ  ÓÐ Ðà  àDonald€and€Daisy€are€married.€Both€have€a€history€of€criminal€activity.€€Donald€has€multipleÐ ( Ø Ðconvictions€for€theft€and€Daisy€has€convictions€for€theft€and€perjury.€Upon€Daisyððs€learning€thatÐ  Ä ÐDonald€had€recently€committed€several€thefts,€she€and€Donald€separated.Ð  ° Ðà  àÌà  àIn€an€attempt€to€resolve€their€marital€problems,€Donald€and€Daisy€went€for€counseling€withÐ Ø ˆ ÐJoe,€the€minister€of€their€church.€€Daisy€and€Donald€discussed€their€problems,€including€the€thefts,Ð Ä t Ðwith€Reverend€Joe.Ð °` Ðà  àÌà  àBecause€of€the€mental€stress,€Donald€went€to€see€his€family€doctor.€He€discussed€theÐ ˆ8  Ðseparation€and€thefts€with€the€doctor.€His€doctor€referred€Donald€to€a€licensed€psychologist.€DonaldÐ t$  Ðtells€the€psychologist€about€the€problems€with€his€marriage€and€about€his€criminal€activity.Ð `  Ðà  àÌà  àDonald€has€been€charged€with€the€thefts.€Donald€wants€to€know€if€Daisy,€Reverend€Joe,€hisÐ 8è  Ðfamily€doctor,€and€the€psychologist€will€be€able€to€testify€against€him€at€his€trial€for€the€thefts.Ð $Ô  ÐÐ Ðà  àò òDiscuss€fully€the€admissibility€of€the€testimony€of€the€four€individuals€over€DonaldððsÐ ü¬ Ðobjectionó ó.Ð è˜ ÐÓNÓÓ  ÓÔ#†XýÌXX!XýÌ.N#ÔÌò òÓ  ÓREPRESENTATIVE€ANSWER€1ó óÐ °` ÐÓ|TÓÓÓÌTestimony€by€DaisyÐ t$ Ðà0  àà ° àÐ (#(# Ðà  àUnder€the€marital€privilege,€conversations€between€a€husband€and€wife€that€are€intendedÐ Lü Ðto€be€confidential€cannot€be€admitted€in€court.€€Here,€the€statements€that€Donald€made€to€DaisyÐ 8 è Ðwhen€it€was€just€the€2€of€them€are€protected€by€this€privilege,€but€statements€made€in€theÐ $!Ô Ðpresence€of€others€(like€the€Reverend)€will€not€be€protected€by€the€marital€privilege.Ð "À Ðà0  àà ° à€Ð (#(# Ðà  àSpousal€immunity€allows€a€spouse€to€choose€whether€or€not€to€testify€against€their€otherÐ è#˜ Ðspouse.€Donald€and€Daisy€have€separated€but€are€not€divorced.€If€the€separation€is€permanentÐ Ô$„  Ð(there€is€no€intention€to€resume€the€marriage)€then€the€immunity€is€lost.€If€it€is€not€permanent,Ð À%p! Ðthen€Daisy€has€a€choice€about€whether€or€not€to€testify.Ð ¬&\" ЀÐ ÐÌÌà  àUnder€Maryland€law,€a€person€convicted€of€perjury€is€not€competent€to€testify€unless€theyÐ \* #& Ðare€a€defendant€in€their€own€trial.€Due€to€her€prior€perjury€conviction,€Daisy€will€be€foundÐ H+ø#' Ðincompetent€and€as€a€result,€she€will€not€be€allowed€to€testify€against€Donald.Ð 4,ä$( ÐÑ  Ñ€òòÐ  -Ð%) ÐTestimony€by€Reverend€Ð P Ðóóà0  àà ° àÐ (#(# Ðà  àDonald€will€argue€that€this€communication€to€the€Reverend€should€be€protected€by€theÐ ( Ø Ðpriest„penitent€privilege€which€is€recognized€in€Maryland.€This€provides€for€the€exclusion€ofÐ  Ä Ðtestimony€by€an€individual€to€their€religious€advisor.€Here,€there€may€not€be€an€expectation€ofÐ  ° Ðconfidentiality€however€because€Daisy€was€in€the€room€when€Donald€talked€about€his€thefts.Ð ì œ ÐThese€statements€will€therefore€not€be€privileged€and€Reverend€Joe€may€be€called€to€testify€as€toÐ Ø ˆ Ðwhat€Donald€told€him.Ð Ä t ÐÑ  Ñà0  àà ° à€Ð (#(# Ðà  àThe€statements€made€by€Donald€to€Reverend€Joe€during€the€counseling€sessions€may€beÐ œL  Ðadmitted.Ð ˆ8  Ðà0  àà ° à€Ð (#(# Ðà  àWhile€it€is€hearsay,€Donaldððs€out€of€court€statements€are€being€offered€against€him€thus€itÐ `  Ðcomes€in€as€a€party€admission.€Daisyððs€statements€during€the€same€counseling€Ð Lü  Ðsessions€will€not€be€admissible€on€those€grounds€because€she€is€not€on€trial.€Her€statements€willÐ 8è  Ðbe€an€out€of€court€statement€being€offered€to€prove€the€truth€of€what€is€asserted.€Thus,€theyÐ $Ô  Ðshould€not€be€allowed€in€against€Donald.Ð À Ðà0  àà ° à€Ð (#(# Ðà  àThe€statements€made€by€Daisy€to€Reverend€Joe€regarding€the€thefts€should€not€beÐ è˜ Ðadmitted.€Ð Ô„ ÐÑ  ÑÐ ÐòòTestimony€of€Doctoróó€Ð ¬\ ÐÑ  Ñà0  àà ° à€Ð (#(# Ðà  àThe€state€of€Maryland€does€not€recognize€a€doctor„patient€privilege€so€that€cannot€protectÐ „4 ÐDonald€here.€The€federal€rules€allow€for€protection€of€statements€made€for€the€purpose€ofÐ p  Ðtreatment€and€diagnosis,€but€in€Maryland,€any€statements€made€would€be€Ð \  Ðadmissible.€€Again,€the€party€admission€would€get€past€any€hearsay€concerns.Ð Hø Ðà0  àà ° àÐ ÐThis€testimony€will€be€admitted.€Ð !Ð(#(# ÐÑ  ÑÐ ÐòòTestimony€by€PsychologistóóÐ ø"¨ Ðà0  àà ° àÐ (#(# Ðà  àWhile€Maryland€does€not€recognize€a€privilege€for€doctor„patient,€they€do€forÐ Ð$€  Ðpsychotherapists€and€their€patients.€Here,€Donald€told€his€psychotherapist€about€his€criminalÐ ¼%l! Ðactivity€because€it€related€to€the€overall€problems€with€his€life.€These€statements€would€beÐ ¨&X" Ðprotected€by€privilege€because€the€psychologist€is€seeing€him€for€the€purposes€of€mental€healthÐ ”'D # Ðcounseling.€Ð €(0!$ ÐÑ  Ñà0  àà ° àÐ ÐThus,€an€objection€to€this€testimony€should€be€sustained.€ÐX*#&(#(# ÐÑ  ÑÌÓÇTÓÓ  Óò òÐ 0,à$( ÐREPRESENTATIVE€ANSWER€2ó óÐ P ÐÔ‡!XýÌXXXýÌÔÓ  ÓòòÓÓDaisy€óóÐ ( Ø ÐÌà  àDaisy€will€not€be€able€to€testify€against€Donald€because€she€has€been€convicted€of€perjury.€Ð  ° ÐIn€Maryland€people€who€have€been€committed€of€perjury€are€barred€from€testifying.€€Even€if€DaisyÐ ì œ Ðwere€able€to€testify€Donald€could€assert€the€privilege€of€confidential€marital€communications€againstÐ Ø ˆ ÐDaisy€if€his€communications€with€her€about€the€thefts€were€communicated€in€confidence.€If€thereÐ Ä t Ðwas€no€expectation€of€confidentiality€between€Donald€and€Daisy€when€he€communicated€theseÐ °` Ðthings,€he€cannot€assert€this€privilege.€Furthermore,€Daisy€cannot€be€forced€to€testify€against€herÐ œL  Ðhusband€in€a€criminal€proceeding.€This€privilege€belongs€to€the€witness€spouse,€so€that€if€DaisyÐ ˆ8  Ðwanted€to€testify€against€Donald€(and€thus€damage€the€marriage)€she€could.€Even€if€Daisy€was€ableÐ t$  Ðto€testify,€however,€her€credibility€could€be€impeached€with€evidence€of€the€prior€perjury€and€theftÐ `  Ðas€indications€of€her€lack€of€credibility.Ð Lü  ЀÐ ÐòòReverend€JoeÐ $Ô  Ðóóà0  àà ° àà0(#(#àÐ (#(# Ðà  àDonald€will€be€able€to€prevent€Rev.€Joe€from€testifying€because€information€communicatedÐ ü¬ Ðto€clergy€within€the€scope€of€religious€absolution€etc.,€is€privileged.€However,€Donald€will€have€toÐ è˜ Ðprove€that€his€communication€with€Rev.€Joe€was€in€the€scope€of€religious€devotion.€The€discussionÐ Ô„ Ðwith€Reverend€Joe€also€included€Daisy,€which€might€destroy€the€privilege€if€the€court€finds€thatÐ Àp ÐDonald€had€no€legitimate€expectation€of€confidentiality€(but€if€he€did,€then€marital€confidenceÐ ¬\ Ðprivilege€would€bar€her€ð!ð€see€above).€Furthermore,€if€the€scope€of€the€conversation€only€included€theÐ ˜H Ðmarital€problems€and€not€the€thefts,€then€it€is€possible€that€Rev.€Joe€would€be€able€to€testify€as€to€thatÐ „4 Ðissue.€However,€he€probably€will€not€be€able€to€testify€against€Donald€at€all€because€the€facts€indicateÐ p  Ðthat€his€discussion€with€the€Reverend€was€in€the€scope€of€religious€observance/€guidance.Ð \  ÐÐ ÐòòDoctorÐ 4 ä Ðóóà0  àà ° àÐ (#(# Ðà  àMD€does€not€recognize€a€doctor„patient€privilege€(although€the€federal€rules€do).€Therefore,Ð  "¼ Ðhis€communication€to€his€doctor€about€the€thefts€will€be€admissible€against€him,€and€he€will€not€beÐ ø"¨ Ðable€to€prevent€the€doctor€from€testifying.Ð ä#” ЀÐ ÐòòPsychologistóó€Ð ¼%l! ÐÌÓ  Óà  àMD€does€recognize€a€psychologist€patient„privilege,€and€therefore,€Donald€will€be€able€toÐ ”'D # Ðprevent€the€psychologist€from€testifying€as€to€the€information€he€gave€him€in€the€course€of€hisÐ €(0!$ Ðtreatment.€Again,€the€information€must€be€communicated€to€the€psychologist€in€the€course€of€hisÐ l)"% Ðtreatment€or€the€privilege€will€not€apply.Ð X*#& ÐÓ gÓÑ  ÑÔ#†XýÌXX!XýÌÜf#ÔÌÐ -Ì%) ÐÑ  ÑÑÈÑÑXÑÓ  Óò òÓÓQUESTION€4ó óÐ P ÐÌÓ  Óà  àCreative€Publications,€Inc.€(ð ðCreativeðð)€provides€page€design,€illustration€layout€andÐ ( Ø Ðtypesetting€services€for€would„be€authors.€€Ames€is€the€author€of€a€manuscript€for€a€manual€onÐ  Ä Ðhome€design.€€Ames€entered€into€a€written€agreement€with€Creative€for€its€services.€The€contractÐ  ° Ðprovided€that€the€final€design€for€the€book€would€include€illustration€exactly€as€submitted€byÐ ì œ ÐAmes.€The€contract€further€provided€that€Creativeððs€fee€was€$2,500€and€that€if€Ames€failed€toÐ Ø ˆ Ðpay€any€invoice€within€30€days€of€presentation,€Creative€would€have€the€right€to€enter€judgmentÐ Ä t Ðby€confession€against€Ames€in€the€District€Court€of€Maryland€for€Talbot€County.€€The€contractÐ °` Ðprovided€that€Amesðð€address€was€222€Park€Street,€Easton,€Maryland.Ð œL  ÐÌà  àCreative€provided€its€proofs€to€Ames€on€May€20,€2009,€together€with€its€invoice€forÐ t$  Ð$25,500.€Upon€inspection,€Ames€noticed€that€the€proofs€did€not€include€several€illustrations.Ð `  ÐAmes€refused€to€pay€the€invoice.Ð Lü  ÐÌà  àOn€July€1,€2009,€Creative€filed€a€legally€sufficient€complaint€in€the€District€Court€forÐ $Ô  ÐTalbot€County€stating€it€had€performed€the€contract€and€seeking€a€judgment€by€confession€forÐ À Ð$2,500.€The€affidavit€in€support€of€the€complaint€stated€that€Ames€lived€at€222€Park€Street,Ð ü¬ ÐEaston,€Maryland.€On€July€6,€the€Clerk€of€Court€prepared€a€notice€of€judgment.€On€that€day,Ð è˜ ÐSmith,€the€president€and€sole€owner€of€Creative,€picked€up€the€notice€from€the€Clerkððs€office€andÐ Ô„ Ðstopped€by€222€Park€Street€on€his€way€home€from€work.€€His€knock€at€the€door€was€answered€byÐ Àp ÐBill,€who€told€him€that€Ames€no€longer€lived€there.€Smith,€unsure€what€to€do,€left€the€notice€withÐ ¬\ ÐBill€asking€him€ð ðto€make€sure€Ames€gets€these.ððÐ ˜H ÐÌà  àOn€July€7,€Smith€filled€out€a€return€of€service€form€in€which€he€stated€that€he€ð ðhad€left€theÐ p  Ðnotice€at€222€Park€Street€in€the€possession€of€Bill.ðð€On€August€6,€Bill€saw€Ames€at€a€hardwareÐ \  Ðstore€and€gave€Ames€the€notice,€explaining€how€the€documents€had€come€into€his€possession.Ð Hø ÐÌÓ€ M(5h83,Óò òa.€€What€grounds€does€Ames€have€to€contest€the€confessed€judgment?Ð  !Ð ÐÌb.€€What€procedural€steps€should€Ames€take€to€accomplish€her€goals?Ð ø"¨ ÐÌc.€€What€are€the€time€frames€within€which€Ames€must€act?Ô‡+X¾¸XXXýÌÔÐ Ð$€  ÐÌÌÔ#†XýÌXX+X¾¸—#ÔÔ‡PXáBXXXýÌÔÒܰÒÒܰÒÓ  ÓREPRESENTATIVE€ANSWER€1ó óÐ ¤'T # ÐÌÌÓ+€ÓThe€MD€Rules€of€Civil€Procedure€apply€to€these€facts.Ð X*#& Ðâ âÔ_ÔÐ >+î#' Ðà 4 àÔ#†XýÌXXPXáBð#ÔÔ‡TXýÌXXXýÌÔ(a)€€Ames€can€challenge€the€confessed€judgment€on€serveral€grounds€includingÐ P Ðâ âimproper€service€of€process€and€Creative's€breach€of€contract.€€Ð <ì ÐÌòòimproper€service€to€addressÐ  Ä ÐóóÌà 4 àService€to€a€defendant€must€be€reasonably€calculated€to€provide€actual€notice.€€Ð ì œ ÐÌà 4 àUnder€rule€3„611,€the€court€can€enter€a€confessed€judgment,€if€it€is€properly€filedÐ Ä t Ðand€states€a€liquidated€amount,€has€an€affidavit€specifying€the€amount€due,€and€states€theÐ °` Ðaddress€of€the€defendant€or€that€the€defendant's€whereabouts€are€unknown.€€After€entry€ofÐ œL  Ðthe€judgment,€notice€must€be€made€promptly€of€the€judgment€(instead€of€a€summons)€inÐ ˆ8  Ðthe€same€manner€required€in€3„121.€€see€3„611.€€Ð t$  ÐÌà 4 àThe€notice€did€not€comply€with€3„121(a)(1),€however,€because€it€was€not€handÐ Lü  Ðdelivered€to€Ames.€€The€service€also€did€not€comply€with€3„121(a)(2)€because€the€addressÐ 8è  Ðwhere€the€notice€was€left€was€no€longer€Ames'€dwelling€house€or€usual€place€of€abode.€Ð $Ô  ÐSmith€knew€that€when€he€arrived€at€the€house€but€left€the€notice€with€Bill€anyway.€€ThisÐ À Ðwas€improper€because€it€was€the€wrong€address€and€Bill€did€not€live€with€AmesÐ ü¬ Ð(therefore,€he€was€not€a€resident€of€suitable€age€and€discretion).Ð è˜ ÐÌà 4 àAmes€can€also€challenge€the€fact€that€the€service€was€not€made€by€a€properÐ Àp Ðindividual.€€Smith€is€the€president€and€sole€owner€of€Creative,€the€plaintiff,€and€thereforeÐ ¬\ Ðhe€is€not€a€proper€person€to€make€service€under€section€3„123.€€Rule€3„123€requires€theÐ ˜H Ðperson€be€a€sheriff,€by€a€competent€private€person€who€is18€years€of€age€or€older.€€ServiceÐ „4 Ðcan€be€made€by€an€attorney€of€record,€"but€not€by€a€party€to€the€action."€€Thus,€service€byÐ p  ÐSmith€was€improper€and€invalid.Ð \  ÐÌà 4 àSmith€did€not€try€to€complete€service€via€the€mail,€as€provided€in€rule€3„126(a),Ð 4 ä Ðand€did€not€comply€with€3„126(a)(1)€submit€proof€of€the€description€of€the€person€heÐ  !Ð Ðserved€(Bill)€or€facts€indicating€that€Bill€was€a€proper€person€to€serve.€€The€July€7thÐ  "¼ Ðstatement€was€too€vague€to€comply€with€the€rule€properly€because€it€did€not€indicate€whyÐ ø"¨ ÐBill€was€a€proper€person€to€serve.€€Smith€also€did€not€file€proof€under€affidavit,€asÐ ä#” Ðrequired€in€3„126(2)€that€included€his€name,€address,€and€telephone€number€and€aÐ Ð$€  Ðstatement€that€he€is€of€the€age€of€18€or€over.Ð ¼%l! ÐÌòòmerits:€breach€of€contractÐ ”'D # ÐóóÌà 4 àIn€addition€to€these€service€of€process€issues,€Ames€also€has€the€substantiveÐ l)"% Ðdefense€that€Creative€breached€the€contract€by€not€including€several€of€his€illustrations€inÐ X*#& Ðthe€proof.€€By€refusing€to€pay€the€invoice,€Creative€and€Ames€should€have€workedÐ D+ô#' Ðtogether€to€solve€the€problem€to€avoid€a€total€breach€of€contract.€€The€facts,€however,€doÐ 0,à$( Ðnot€indicate€what€happened€after€Ames€refused€to€pay€the€invoice€and€before€theÐ P Ðcomplaint€was€filed.€€Ames€can€argue€that€a€confessed€judgment€was€not€proper€under€theÐ <ì Ðcontract€because€Creative's€breach€is€what€caused€him€to€refuse€to€pay.Ð ( Ø ÐÌà 4 à(b)€€Ames€should€immediately€file€a€notice€of€intention€to€defend,€pursuant€to€ruleÐ  ° Ð3„307.€€Ames€"shall"€file€such€a€notice,€which€may€include€any€explanation€or€ground€ofÐ ì œ Ðdefense€(i.e.,€improper€service€and€Creative's€breach).€€I€would€also€recommend€thatÐ Ø ˆ ÐAmes€retain€an€attorney€to€represent€her€in€this€matter.€€If€done,€the€attorney€will€need€toÐ Ä t Ðserve€the€notice€of€intent€to€defend€according€to€rule€1„321€(see€rule€3„307).Ð °` ÐÌà 4 àAmes€can€also€file€a€motion€under€rule€3„311€asking€the€court€to€reverse€theÐ ˆ8  Ðjudgment€on€the€grounds€of€improper€notice,€etc.€as€discussed€above.€€Ð t$  ÐÌà 4 àA€rule€3„534€can€be€filed,€asking€the€court€to€reopen€the€judgment€to€receiveÐ Lü  Ðadditional€evidence,€to€amend€its€findings€or€its€statements€of€reasons,€to€set€forthÐ 8è  Ðadditional€findings€or€reasons,€enter€new€findings€or€new€reasons,€or€amend€judgment€orÐ $Ô  Ðenter€new€judgment.€€This€should€be€filed€along€with€a€motion€for€new€trial€(motionsÐ À Ðjoined€together).€€(see€3„534).Ð ü¬ ÐÌà 4 àThe€motion€can€also€be€filed€under€rule€3„611(c)€to€open,€modify,€or€vacate€theÐ Ô„ Ðconfessed€judgment.€€The€motion€must€state€the€legal€and€factual€basis€for€the€defense€toÐ Àp Ðthe€claim€(Creative's€breach€of€contract).Ð ¬\ ÐÌà 4 à(c)€€The€notice€of€intent€to€defend€must€be€filed€within€15€days€of€service€of€theÐ „4 Ðcomplaint.€see€rule€3„307.€€Thus,€Ames€should€file€the€notice€as€soon€as€possible.€€He€didÐ p  Ðnot€receive€actual€notice€of€the€judgment€until€August€6th,€so€the€15€day€clock€should€notÐ \  Ðhave€started€before€then.€€Ð Hø ÐÌà 4 àA€motion€to€alter€or€amend€judgment€under€rule€3„534€must€be€filed€within€10Ð  !Ð Ðdays€of€entry€of€judgment.€€A€motion€to€revise€judgment€under€rule€3„535€can€be€filedÐ  "¼ Ðwithin€30€days.€€Here,€however,€Ames€was€not€given€proper€notice€of€the€judgment€untilÐ ø"¨ ÐAugust€6th,€a€full€month€after€the€judgment€was€entered.€€Thus,€Ames€should€approachÐ ä#” Ðthe€court€immediately€to€resolve€the€issue.€€August€6th€still€falls€within€the€30€day€periodÐ Ð$€  Ð(because€the€time€frame€is€over€7€days€and€therefore€doesn't€count€saturday,€sundays,€orÐ ¼%l! Ðholidays),€so€there€may€still€be€time,€but€if€not,€Ames€should€argue€that€the€clock€shouldÐ ¨&X" Ðnot€start€until€the€date€she€received€notice€(Aug.€6),€which€will€be€granted€under€rule€3„Ð ”'D # Ð611(c).€€Ð €(0!$ ÐÌà 4 àUnder€these€facts,€the€court€will€likely€find€that€there€is€"a€substantial€andÐ X*#& Ðâ âsufficient€basis€for€an€actual€controversy€as€to€the€merits€of€the€action,"€and€therefore€willÐ D+ô#' Ðorder€the€judgment€of€confession€opened,€modified,€or€vacated€to€allow€Ames€to€file€aÐ P Ðresponsive€pleading.€€see€rule€3„611.€€Ð <ì Ðâ âÌò òà@ìì*ìàˆÌó óÓ  ÓÓ  Óà 4 àò òó óà@<<ìàò òREPRESENTATIVE€ANSWER€2ó óˆÐ  ° Ðà 4 àà Œ àÌa.€€€€Ames€has€both€procedural€and€substantive€grounds€for€contesting€the€confessedÐ Ø ˆ Ðjudgment.€Ames€main€substantive€ground€for€contesting€confessed€judgment€is€breach€ofÐ Ä t Ðcontract€on€the€party€of€Creative.€€Because€this€is€a€contract€for€services,€as€opposed€toÐ °` Ðgoods,€common€law€applies€as€opposed€to€the€UCC.€€Under€common€law,€breach€by€oneÐ œL  Ðparty€does€not€mean€that€the€other€party€is€excused€from€performing.€€In€other€words,Ð ˆ8  Ðthere€is€no€perfect€tender€rule.€€The€standard€instead€is€substantial€performance€with€theÐ t$  Ðterms€of€the€contract.€€Ð `  ÐÌà 4 àIn€this€contract,€the€parties€specifically€provided€that€the€design€would€includeÐ 8è  Ðillustrations€exactly€as€submitted.€€Because€this€condition€was€not€performed€by€Creative,Ð $Ô  Ðseveral€illustrations€were€omitted,€Creative€breach€the€contract.€€Ames€does€not€have€theÐ À Ðright€to€refuse€all€payment,€but€rather€has€a€claim€for€damages,€which€would€likely€be€aÐ ü¬ Ðreduced€invoice€price.€€Consequently,€Ames€should€not€have€a€judgment€against€him€forÐ è˜ Ðthe€full€contract€price.Ð Ô„ ÐÌà 4 àThe€main€procedural€ground€for€contesting€the€entry€of€judgment€isÐ ¬\ Ðinsufficient/improper€service.€€The€first€problem€with€the€service€here€is€that€it€wasÐ ˜H Ðperformed€by€a€party.€€While€an€attorney€may€serve,€a€party€may€not.€€Smith€as€theÐ „4 Ðpresident€of€Creative€may€not€serve€process.€€The€second€problem€is€that€Ames€wasÐ p  Ðserved€at€the€wrong€address.€€Ames€no€longer€lived€at€the€address.€€While€Bill€may€be€ofÐ \  Ðsuitable€age€and€discretion,€he€is€not€a€resident€of€Ames€dwelling€house.€€The€return€ofÐ Hø Ðservice€is€consequently€misleading€because€Smith€knew€that€Ames€was€not€served.Ð 4 ä ÐÌb.€€€à 4 àAmes€should€file€a€Motion€to€Vacate€the€Entry€of€Confessed€Judgment,€a€NoticeÐ  "¼ Ðof€Intention€to€Defend,€and€a€Motion€to€Amend€Judgment.€€The€Motion€to€Vacate€EntryÐ ø"¨ Ðof€Confessed€Judgment€should€allege€that€it€is€not€a€liquidated€claim,€based€on€the€breachÐ ä#” Ðof€contract€by€Creative€and€thus,€it€is€inappropriate€relief.€€Ð Ð$€  ÐÌà 4 àThe€Notice€of€Intention€to€Defend€should€include€an€explination€of€why€the€15Ð ¨&X" Ðday€filing€should€be€waived€due€to€insufficient€service€of€process.€€Ð ”'D # ÐÌà 4 àThe€Motion€to€Amend€Judgment€should€allege€that€due€to€Creative's€breach€anyÐ l)"% Ðjudgment€brought€under€the€contract€should€be€less€than€$2,500.€(See€substantive€groundÐ X*#& Ðin€4.a.)Ð D+ô#' ÐÐ 0,à$( Ðà 4 àAttached€to€the€Motions€should€be€a€copy€of€the€contract,€a€copy€of€theÐ P Ðillustrations€provided€to€Creative,€and€a€copy€of€the€inaccurate€proofs€recieved€fromÐ <ì ÐCreative.€€Ames€may€also€include€an€affidavit€as€to€the€breach€of€contract,€though€this€isÐ ( Ø Ðnot€necessary.€€Both€motions€should€be€filed€in€order€to€account€for€a€variety€of€responsesÐ  Ä Ðfrom€both€the€judge€and€Creative.Ð  ° ÐÌc.€€€à 4 àBecause€there€was€improper€service€of€process€on€Ames,€the€July€6€date€is€notÐ Ø ˆ Ðdeterminative.€€Ames€actually€came€to€know€about€the€claim€on€August€8.€€Ames€needs€toÐ Ä t Ðfile€the€Notice€of€Intent€to€Defend€immediately,€as€opposed€to€in€15€days.€€According€toÐ °` Ðthe€courts€documents,€the€entry€of€judgment€was€30€days€ago,€thus€Creative€could€seekÐ œL  Ðfinal€judgment€at€anytime.Ð ˆ8  ÐÌà 4 àWithin€30€days€of€August€6,€Ames€should€file€the€Motion€to€Vacate€and€MotionÐ `  Ðto€Amend.€€€Ð Lü  ÐÓœÓò òÔ‡T?î! =XTXýÌÔÌÌÌÔ#†TXýÌX =T?î!:¬#ÔÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ ,Â$( ÐQUESTION€€5ó óÐ P ÐÌÓ  Óà 4 àAble€owned€several€unused€commercial€greenhouses€in€Maryland.€€Baker€andÐ ( Ø ÐCarr€approached€her€with€a€proposal€to€go€into€business€with€one€another€to€grow€flowersÐ  Ä Ðfor€sale€to€local€florists.€€They€drew€up€and€signed€a€document€entitledððBusiness€PlanððÐ  ° Ðwhich€provided€that€the€three€would€form€a€Maryland€corporation,€that€they€would€beÐ ì œ Ðequal€shareholders,€and€that€Baker€and€Carr€would€each€invest€$25,000€for€their€stock.€Ð Ø ˆ ÐThe€business€plan€provided€that€marketing€efforts€would€be€handled€by€Carr,€€that€BakerÐ Ä t Ðwould€be€responsible€for€management,€and€the€Able€would€be€responsible€for€growingÐ °` Ðthe€flowers€in€her€greenhouses€in€return€for€her€stock.Ð œL  ÐÌà 4 àThe€three€persons€signed€Articles€of€Incorporation€for€ð ðABC,€Inc.ðð€€Baker€saidÐ t$  Ðthat€he€would€ð ðtake€care€of€the€rest€of€the€paperwork,ðð€but€he€did€not€file€the€Articles€ofÐ `  ÐIncorporation.Ð Lü  ÐÌà 4 àShortly€thereafter€baker€wrote€a€check€for€$25,000€to€ABC,€Inc.€and€deposited€itÐ $Ô  Ðin€a€bank€account€in€ABC,€Inc.ððs€name.€Carr€deposited€$10,000€one€week€later.€€BakerÐ À Ðand€Able€met€with€a€sales€representative€from€Northern€States€regarding€establishing€aÐ ü¬ Ðcredit€account€for€fertilizer€and€supplies.€They€told€the€account€manager€that€ABC,€Inc.Ð è˜ Ðwas€a€start„up€business,€gave€him€a€copy€of€the€business€plan,€and€told€him€that€ABC,€Inc.Ð Ô„ Ðhad€$35,000€in€working€capital€and€was€expecting€an€additional€$15,000€from€Carr.€TheÐ Àp Ðcredit€manager€approved€the€application,€and,€for€six€months,€Able€purchased€suppliesÐ ¬\ Ðfrom€Northern€States.€Invoices€were€sent€to€her€in€the€name€of€ð ðABC,€Inc.ðð€and€BakerÐ ˜H Ðpaid€the€invoices€with€checks€drawn€on€the€companyððs€account.Ð „4 ÐÌà 4 àThe€business€did€not€prosper€and,€after€six€months,€it€had€no€money€in€its€account.Ð \  ÐBaker€and€Carr€told€Able€that€they€were€ending€the€corporationððs€operation.€AbleÐ Hø Ðprotested,€saying€that€the€business€had€fine€prospects.€Carr€said€that€he€ð ðhad€lost€enoughÐ 4 ä Ðmoney€alreadyðð€in€the€business.€Baker€informed€Northern€States€that€ABC,€Inc.€hadÐ  !Ð Ðceased€operations€and€had€no€assets€to€pay€its€balance€due€of€$10,000.€€Northern€StatesÐ  "¼ Ðhas€filed€suit€in€a€Maryland€court€of€appropriate€jurisdiction€and€venue€against€ABC,€Inc.,Ð ø"¨ ÐAble,€Baker,€and€Carr€personally€for€$10,000.Ð ä#” ÐÌò òWhat€defense€are€Abel,€Baker€and€Carr€likely€to€assert€to€Northern€Statesðð€claim?€Ð ¼%l! ÐUnder€these€facts€how€is€a€court€likely€to€rule?Ð ¨&X" ÐÌÌÌÌÌÐ 0,à$( Ðó óÓ  Óà @4 àò òREPRESENTATIVE€ANSWER€1Ð P ÐÓˆ¸ÓÌó óAbleÐ ( Ø ÐÌà 4 àAble€will€attempt€to€assert€the€defenses€of€de€facto€corporation€and€corporation€byÐ  ° Ðestoppel€against€Northern€States.€The€corporate€form€protects€officers€of€the€corporationÐ ì œ Ðfor€personal€liability€for€the€actions€of€the€corporation,€as€long€as€they€act€on€behalf€of€theÐ Ø ˆ Ðcorporation.€€€The€defense€of€de€facto€corporation€is€available€if€the€corporation€hasÐ Ä t Ðsubstantially€gone€through€all€of€the€elements€of€incorporating,€but€has€failed€to€becomeÐ °` Ðincorporated€because€of€a€minor€detail.€€Here,€this€defense€is€not€available€to€ABCÐ œL  Ðcorporation€because€the€articles€of€corporation€were€never€even€filed€with€MDAT.€Ð ˆ8  ÐCorporation€by€estoppel€will€be€available€as€a€defense€to€Able€because€Northern€at€allÐ t$  Ðtimes€dealt€with€ABC€as€if€it€was€a€corporation,€sent€ABC€inc€invoices€and€was€paid€byÐ `  Ðchecks€from€ABC€inc's€account.€€Northern€is€now€estopped€from€asserting€that€ABC€isÐ Lü  Ðnot€a€corporation€for€this€reason.€€Furthermore,€ABC€will€be€liable€to€the€corporation€onlyÐ 8è  Ðas€far€as€her€personal€investment€in€the€corporation€if€she€is€protected€by€the€corporateÐ $Ô  Ðform.€€Therefore,€Northern€could€argue€that€it€has€a€right€to€put€a€lien€on€the€green€housesÐ À Ðbecause€it€could€consider€them€corporate€property€since€she€contributed€them€in€return€forÐ ü¬ Ðcorporate€stock.€€However,€Able€is€probably€not€liable€to€Northern.€€Ð è˜ ÐÌBakerÐ Àp ÐÌà 4 àBaker€will€not€be€able€to€assert€either€de€facto€corporation€status€or€corporation€byÐ ˜H Ðestoppel..€As€above,€de€facto€corp€is€not€available€here€since€no€effort€was€made€to€file.€Ð „4 ÐFurthermore,€since€Baker€was€the€one€responsible€for€filing€the€articles€with€MDAT,€butÐ p  Ðhe€didn't€do€it,€he€cannot€claim€to€be€protected€by€the€estoppel€defense€because€he€hasÐ \  Ðunclean€hands.€€His€failure€to€file€can€be€seen€as€a€violation€of€his€duty€of€care€to€theÐ Hø Ðcorporation€„€which€is€what€a€reasonably€prudent€person€would€have€done.€€Here,€aÐ 4 ä Ðreasonably€prudent€person€would€have€filed€with€MDAT.€Therefore,€he€may€be€liable€toÐ  !Ð Ðthe€other€members€of€the€corporation€if€ABC€or€any€of€its€members€are€found€liable.€€TheÐ  "¼ Ðcourt€is€likely€to€rule€that€Baker€is€personally€liable€to€Northern.€€Ð ø"¨ ÐÌCarrÐ Ð$€  ÐÌà 4 àCarr€will€be€able€to€assert€corporation€by€estoppel€because€Northern€dealt€withÐ ¨&X" ÐABC€as€if€it€was€a€corporation,€and€Carr€believed€that€he€was€protected€by€the€corporateÐ ”'D # Ðform.€However,€he€may€be€€liable€to€ABC€for€the€15000€that€he€promised€beforeÐ €(0!$ Ðoperations€were€commenced.€€AN€offer€to€buy€stock€before€the€corporation€is€begun€willÐ l)"% Ðbe€held€open€until€the€corporation€is€created,€and€Carr€only€paid€10,000€of€his€own€share.€Ð X*#& ÐTherefore,€he€may€be€compelled€by€other€officers€of€the€corporation€to€contribute€thisÐ D+ô#' Ðmoney€now€that€the€corporation€is€winding€up,€in€order€to€satisfy€the€debt€owed€toÐ 0,à$( ÐNorthern.€Even€though€Carr€has€manifested€a€desire€to€end€the€corporation,€he€would€stillÐ P Ðbe€protected€by€the€corporate€form€during€the€dissolution€process.€€Therefore,€it€is€likelyÐ <ì Ðthat€since€Car€thought€he€was€acting€under€the€protection€fo€the€corporate€form€andÐ ( Ø ÐNorthern€dealt€with€him€as€such,€he€will€be€protected€by€corporation€by€estoppel.ò òÐ  Ä ÐÌÓ  ÓREPRESENTATIVE€ANSWER€2Ð ì œ ÐÌó óÓæÇÓà 4 àA€corporation€is€a€business€entity€that€shields€the€personal€assets€of€itsÐ Ä t Ðshareholders.€€Here,€Able,€Baker,€and€Carr€signed€Articles€of€Incorporation€but€they€wereÐ °` Ðnever€filed€with€the€State€Department€of€Assessment€and€Taxation€and€thus€a€legallyÐ œL  Ðrecognized€corporation€was€not€created.Ð ˆ8  ÐÌà 4 àA€general€partnership€is€created€by€two€or€more€people€for€a€profit€makingÐ `  Ðpurpose€and€the€partnership€does€not€give€protection€to€the€personal€assets€of€the€partners.€Ð Lü  ÐHere,€Northern€States€is€likely€to€claim€that€ABC€Inc.€was€actually€a€partnership€since€itÐ 8è  Ðwas€not€formed€under€Maryland€corporate€laws€and€thus€the€partners€are€personally€liableÐ $Ô  Ðfor€the€debts€of€the€partnership.Ð À ÐÌà 4 àA€defacto€corporation€is€one€that€does€not€meet€the€technical€specifics€of€the€lawÐ è˜ Ðbut€where€the€shareholders€honestly€believed€that€there€was€a€corporation€and€heldÐ Ô„ Ðthemselves€out€to€the€rest€of€the€world€as€a€corporation.€€Here,€Able€and€Carr€trulyÐ Àp Ðbelieved€that€ABC€was€properly€incorporated€because€Baker€stated€that€"he€would€takeÐ ¬\ Ðcare€of€the€rest€of€the€paperwork."€€However,€Baker€knew€that€ABC€was€not€a€corporationÐ ˜H Ðand€thus€may€be€estopped€from€shielding€his€assets€under€the€doctrine€of€defactoÐ „4 Ðcorporation.Ð p  ÐÌà 4 àCorporation€by€estoppel€is€where€third€parties€believe€they€are€dealing€with€aÐ Hø Ðcorporation€and€thus€are€estopped€from€claiming€that€no€corporation€exists.€€Here,€BakerÐ 4 ä Ðand€Able€met€with€a€Northern€State€representative,€explained€they€were€a€start„upÐ  !Ð Ðbusiness,€gave€him€a€copy€of€the€business€plan,€told€Northern€about€ABC's€workingÐ  "¼ Ðcapital,€sent€invoice€for€"ABC€Inc.",€and€the€company€paid€on€checks€drawn€on€theÐ ø"¨ Ðcompany's€account.€€€Therefore,€it€is€likely€that€all€three€could€use€the€defense€ofÐ ä#” Ðcorporation€by€estoppel€since€Northern€had€no€knowledge€and€acted€as€if€they€wereÐ Ð$€  Ðdealing€with€a€corporation.Ð ¼%l! ÐÌà 4 àThe€fact€that€Carr€is€responsible€for€marketing,€Baker€for€management,€and€AbleÐ ”'D # Ðfor€growing€the€flowers€does€not€make€the€three€of€them€personally€liable€for€debts€of€theÐ €(0!$ Ðcompany.€€Yes€they€are€officers€(and€possibly€directors),€but€officers€and€directors€are€notÐ l)"% Ðpersonally€liable€for€the€corporation's€debts.Ð X*#& Ðâ âÐ D+ô#' Ðà 4 àNorthern€will€also€try€to€claim€that€since€Carr€did€not€make€his€entire€investment,Ð P Ðâ âthe€company€is€owed€another€$15,000€and€that€Northern€can€attach€a€judgment€againstÐ <ì Ðthat€outstanding€equity.€€However,€this€appears€to€be€a€matter€of€internal€corporateÐ ( Ø Ðbusiness€and€thus€does€not€entitle€Northern€to€a€claim€against€the€outstanding€equityÐ  Ä Ðinvestment.Ð  ° ÐÌà 4 àPiercing€the€Corporate€Veil€is€when€a€third€party€claims€that€the€corporation€is€aÐ Ø ˆ Ðsham€and€the€court€must€find€that€there€has€been€a€substantial€fraud€or€extreme€andÐ Ä t Ðoutrageous€conduct€that€would€work€an€injustice€if€the€corporate€veil€is€not€pierced.€Ð °` ÐHere,€Northern€believed€that€they€were€dealing€with€a€corporation,€there€is€no€evidence€ofÐ œL  Ðfraud€by€Able,€Baker,€and€Carr,€and€thus€it€is€unlikely€that€the€court€will€allow€NorthernÐ ˆ8  Ðto€pierce€the€corporate€veil.Ð t$  ÐÌà 4 àAn€additional€issue€is€whether€Able's€commercial€greenhouses€are€now€corporateÐ Lü  Ðproperty.€€It€does€not€state€in€the€facts€that€Able€transferred€the€greenhouses€to€theÐ 8è  Ðcompany€and€thus€a€property€transfer€cannot€be€inferred.€€Thus,€it€is€unlikely€that€NortherÐ $Ô  Ðcan€go€after€Able's€greenhouses.Ð À ÐÌà 4 àTherefore,€it€is€likely€that€the€court€will€allow€Able,€Baker€and€Carr€to€defendÐ è˜ Ðtheir€personal€assets€from€Northern.€€Since,€ABC€does€not€have€any€assets€Northern€willÐ Ô„ Ðnot€be€able€to€collect€the€$10,000€debt.Ð Àp Ðò òÔ‡T?î! =XTXýÌÔÌÌÌÔ#†TXýÌX =T?î!ÍÙ#ÔÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ ,Â$( ÐÓ  ÓQUESTION€6Ð P Ðó óÓ7ÚÓÌà 4 àThe€national€home€foreclosure€rates€are€at€an€epidemic€high.Forty€percent€(40%)Ð ( Ø Ðof€Maryland€homeowners€who€purchased€homes€in€the€past€two€years€have€been€subjectÐ  Ä Ðto€mortgage€foreclosure€actions€by€their€mortgage€companies.€€Research€shows€that€mostÐ  ° Ðof€these€homeowners€had€a€five€percent€(5%)€or€greater€increase€in€their€mortgage€rate€inÐ ì œ Ðone€year.Ð Ø ˆ ÐÑ  ÑÌà 4 àIn€light€of€these€conditions,€on€January€20,€2007,€the€State€enacted€a€law€thatÐ °` Ðstates€in€part€as€follows:€€Ð œL  ÐÌÑ  ÑÓ „ÓÓ Óð ðAny€homeowner€in€the€State€of€Maryland€who€purchased€aÐ t$  Ðhome€within€the€lasttwo€(2)€years,€withan€adjustablemortgageÐ `  Ðinterest€ratethat€adjusted€more€than€two€percentage€(2%)€pointsÐ Lü  Ðduring€thesetwo€years,€is€exempt€from€foreclosure€actions€for€aÐ 8è  Ðperiod€of€one€year€from€the€date€of€notice€to€the€homeowner€byÐ $Ô  Ðthe€mortgage€company,€in€orderto€allow€a€cooling€off€period€toÐ À Ðnegotiate€refinancing€terms€with€the€mortgage€company.ððÐ ü¬ ÐÓ „ÓÓ ÓÌà 4 àThe€mortgage€companies€are€understandably€upset€since€mortgages€originating€inÐ Ô„ ÐMaryland€are€customarily€bundled€with€mortgages€originating€elsewhere€and€sold€toÐ Àp Ðinvestors.ò ò€€Ð ¬\ ÐÑ  ÑÌA€national€mortgage€company€based€in€Maryland€comes€to€you,€a€MarylandÐ ˆ8 Ðattorney,€and€asks€you€to€challenge€the€law.€€What€challenges€might€you€bring€andÐ t$ Ðwhat€defenses€do€you€expect€to€be€raised?Ð ` ÐÑ  ÑÌó óÌÓ  Óò òREPRESENTATIVE€ANSWER€1Ð $!Ô ÐÓ  ÓÌòòChallenges€and€Defense€to€Mortgage€Lawó óóóÐ ü"¬ ÐÌòòStandingÐ Ô$„  ÐÌóóà 4 àFirst,€I€would€assess€whether€the€national€mortgage€company€had€standing€toÐ ¬&\" Ðchallenge€the€law.€€Standing€requires€injury„in„fact€or€òòthreatenedóó€injury,€causation,€andÐ ˜'H # Ðredressibility.€€Here,€the€national€mortgage€company€is€based€in€Maryland.€€To€the€extentÐ „(4!$ Ðthat€the€mortgages€held€by€this€company€are€like€others€which€are€customarily€bundledÐ p) "% Ðwith€mortgages€originating€elsewhere€and€sold€to€investors,€the€enacted€law€poses€theÐ \* #& Ðthreat€of€significant€economic€injury€to€the€mortgage€company.€Ð H+ø#' Ðòòà@ìì*ìàˆÐ 4,ä$( Ðà 4 àDefenseóó:€€The€state€would€raise€the€defense€of€òòripenessóó,€since€the€nationalÐ P Ðcompany€has€not€yet€shown€any€indication€that€it€suffered€harm€as€a€result€of€the€lawððsÐ <ì Ðenactment.à Œ àÐ ( Ø ÐòòÌProcedural€Due€ProcessóóÐ  ° ÐÌà 4 àUnder€the€Due€Process€clause€of€the€5òòthóó€Amendment€made€applicable€to€the€statesÐ Ø ˆ Ðby€the€Fourteenth€Amendment,€the€mortgage€company€could€challenge€the€law€based€onÐ Ä t Ðthe€fact€that€it€deprives€them€of€property€without€due€process€of€law.€€The€law€as€writtenÐ °` Ðdoes€not€provide€the€mortgagees€with€notice€or€a€hearing.€€Rather,€it€exempts€allÐ œL  ÐMaryland€homeowners€from€foreclosure€actions€for€one€year€to€permit€the€cooling€offÐ ˆ8  Ðperiod.€€Without€the€proper€procedural€guarantees,€the€law€should€be€challenged.Ð t$  ÐÑ  ÑÌÑ  Ñà 4 àòòDefenseóó:€€The€state€would€argue€that€this€is€a€legitimate€exercise€of€òòpolice€poweróóÐ Lü  Ðfor€the€general€welfare€of€citizensðð€mortgage.Ð 8è  ÐÑ  ÑÌÑ  ÑòòSubstantive€Due€Process€and€Equal€ProtectionÐ À ÐóóÌà 4 àThe€mortgage€company€may€also€want€to€challenge€the€law€because€mortgageÐ è˜ Ðcompanies€do€not€make€up€a€suspect€class,€the€rational€basis€test€would€apply.€€TheÐ Ô„ Ðcompany€would€bear€the€burden€of€proving€that€there€is€no€rational€basis€for€the€law.€€TheÐ Àp Ðpurpose€of€the€law€is€to€remedy€the€effects€of€the€astronomical€foreclosure€rates€and€theÐ ¬\ Ðdramatic€increase€in€the€mortgage€rates.€€However,€it€singles€out€homeowners€who€areÐ ˜H Ðthreatened€by€the€prospect€of€foreclosure€and€it€operates€to€the€detriment€of€the€mortgageÐ „4 Ðcompanies.€€The€class€of€mortgage€companies€is€being€treated€differently.Ð p  ÐÌà 4 àòòDefenseóó:€€The€state€would€argue€that€the€law€is€rationally€related€to€a€legitimateÐ Hø Ðstate€interest€and€that€it€is€implemented€in€the€least€restrictive€means€possible.Ð 4 ä ÐÑ  ÑÌÑ  ÑòòImpairment€of€ContractsóóÐ  "¼ ÐÌà 4 àSince€the€law€applies€to€existing€mortgages,€it€poses€implications€for€existingÐ ä#” Ðcontracts.€€Therefore,€the€mortgage€company€could€assert€a€challenge€to€the€law€on€thisÐ Ð$€  Ðbasis.Ð ¼%l! ÐÑ  ÑÌÑ  Ñà 4 àòòDefenseóó:€€The€state€would€argue€that€this€is€a€legitimate€exercise€of€òòpolice€poweróóÐ ”'D # Ðfor€the€general€welfare€of€citizens€with€mortgages€that€are€being€subject€to€foreclosureÐ €(0!$ Ðactions.€€It€is€permissible€under€certain€circumstances€for€the€state€to€impair€contractsÐ l)"% Ðpursuant€to€its€police€powers,€including€in€the€realm€of€housing€matters.òòÐ X*#& ÐÌTakings€ClauseóóÐ 0,à$( Їà 4 àUnder€the€Takings€Clause,€the€state€is€prohibited€from€taking€property€withoutÐ P Ðproviding€just€compensation.€€The€mortgage€company€can€argue€that€this€law€negates€allÐ <ì Ðeconomically€viable€use€of€the€land€and€prevents€the€mortgagees€from€imposing€a€lien€onÐ ( Ø Ðproperty€that€rightfully€belongs€to€them.Ð  Ä ÐÌà 4 àòòDefenseóó:€€The€state€would€argue€that€this€action€was€necessary€and€promotes€aÐ ì œ Ðlegitimate€government€purpose.Ð Ø ˆ ÐÑ  ÑÌÑ  ÑòòCommerce€ClauseóóÐ °` ÐÌà 4 àThe€law€runs€afoul€of€the€Commerce€Clause€by€placing€an€undue€burden€onÐ ˆ8  Ðinterstate€commerce.€€Again,€the€law€would€disrupt€the€present€practice€of€mortgageÐ t$  Ðbundling€with€mortgages€originating€elsewhere€and€sold€to€investors.€€There€is€anÐ `  Ðargument,€albeit€slightly€weak,€that€there€is€a€òòlack€of€a€sufficient€nexusóó€between€theÐ Lü  Ðenacted€law€and€the€harm€it€seeks€to€remedy.Ð 8è  ÐÌà 4 àòòDefenseóó:€€The€state€would€argue€that€the€law€was€enacted€to€achieve€a€legitimateÐ À Ðgovernmental€purpose.Ð ü¬ ÐÑ  ÑÌÌÑ  ÑÓ  Óò òREPRESENTATIVE€ANSWER€2Ð Àp ÐÓ  ÓÌChallenges€I€might€bring:Ð ˜H ÐÌó óà 4 àThe€òòCommerce€Clauseóó€of€the€Constitution€grants€Congress€the€sole€authority€toÐ p  Ðregulate€interstate€commerce,€and€as€such,€the€states€may€not€discriminate€against€out€ofÐ \  Ðstate€entities€or€substantially€burden€interstate€commerce,€absent€an€importantÐ Hø Ðgovernmental€interest.€€Here,€the€law€places€an€unreasonable€burden€on€mortgageÐ 4 ä Ðcompanies€because€mortgages€are€customarily€bundled€with€mortgages€originatingÐ  !Ð Ðelsewhere€and€sold€to€investors,€and€there€is€the€absence€of€an€important€governmentalÐ  "¼ Ðinterest.€€The€ð ðcooling€off€periodðð€Maryland€wants€to€allow€someone€to€ð ðnegotiateÐ ø"¨ Ðrefinancing€terms€with€the€mortgage€companyðð€is€not€a€sufficiently€importantÐ ä#” Ðgovernmental€purpose.Ð Ð$€  ÐÑ  ÑÌÑ  Ñà 4 àThe€òòEqual€Protection€Clauseóó€of€the€14òòthóó€Amendment€to€the€Constitution€states€thatÐ ¨&X" Ðð ðno€stateðð€shall€deny€any€person€the€equal€protection€of€its€laws.€€Here,€ð ðhomeownersÐ ”'D # Ðwho€purchased€a€home€within€the€last€2€years,€with€an€adjustable€mortgage€rate,€thatÐ €(0!$ Ðadjusted€more€than€2€percentage€points€during€those€two€yearsðð€are€being€givenÐ l)"% Ðpreferential€treatment€over€homeowners€who€purchased€it€before€the€ð ð2€yearðð€mark,€andÐ X*#& Ðthere€is€not€a€rational€relationship€between€this€law€and€any€legitimate€state€interest.€€SeeÐ D+ô#' Ðabove.Ð 0,à$( ÐÑ  ÑÌÑ  Ñà 4 àThe€òòDue€Process€Clauseóó€,€incorporated€to€the€states€through€the€14òòthóó€Amendment,Ð <ì Ðstates€no€person€shall€be€deprived€liberty.€€Here,€the€ð ðmortgage€companyðð€is€the€person,Ð ( Ø Ðand€is€being€deprived€of€the€liberty€of€making€a€contract€with€someone€without€having€theÐ  Ä Ðgovernment€step€in€and€change€the€terms€of€the€legal€agreement.€€The€law€is€not€rationallyÐ  ° Ðrelated€to€any€legitimate€basis€for€interfering€with€the€companyððs€right€to€contract€andÐ ì œ Ðtheir€liberty.€€The€company€will€simply€wait€one€year€and€then€begin€foreclosureÐ Ø ˆ Ðproceedings.Ð Ä t ÐÑ  ÑÌÑ  Ñà 4 àThe€òòTakings€clauseóó€prohibits€the€government€from€taking€private€property€andÐ œL  Ðusing€it€for€public€use€without€just€compensation.€€Here,€the€state€is€taking€the€privateÐ ˆ8  Ðproperty€of€ð ðforeclosure€actionsðð€without€just€compensation.Ð t$  ÐÑ  ÑÌÑ  Ñà 4 àThe€òòContracts€clauseóó€prohibits€a€state€from€interfering€with€a€prior€valid€contractÐ Lü  Ðabsent€an€important€governmental€purpose.€€Here,€the€ð ðcooling€off€periodðð€MarylandÐ 8è  Ðwants€to€allow€someone€to€ð ðnegotiate€refinancing€terms€with€the€mortgage€companyðð€isÐ $Ô  Ðnot€a€sufficiently€important€governmental€purpose.Ð À ÐÑ  ÑÌÑ  Ñò òDefenses€to€be€raised€by€the€state:Ð è˜ ÐÌó óà 4 àCommerce€Clause€ð!ð€Because€the€law€is€not€based€on€geography€€it€simply€has€toÐ Àp Ðpass€the€test€of€whether€it€discriminates€against€out€of€state€mortgage€companies,€which€itÐ ¬\ Ðdoes€not.Ð ˜H ÐÌÑ  Ñà 4 àEqual€Protection€Clause€ð!ð€there€is€a€rational€relationship€between€exemptingÐ p  Ðforeclosure€actions€for€1€year€from€the€date€of€notice€to€a€homeowner€who€bought€a€homeÐ \  Ðwhen€mortgage€companies€were€giving€adjustable€mortgages,€etc.€and€the€stateððs€interestÐ Hø Ðin€trying€to€decrease€foreclosures€and€trying€to€ð ðallow€a€cooling€off€period€to€negotiateÐ 4 ä Ðrefinancing€terms€with€the€mortgage€company.ððÐ  !Ð ÐÌÑ  Ñà 4 àDue€Process€Clause€ð!ð€See€above.Ð ø"¨ ÐÌà 4 àTakings€Clause€ð!ð€the€government€is€not€taking€private€propertyÐ Ð$€  ÐÌÓ  Óò òÌÌÌÌÌÌÐ 0,à$( ÐQUESTION€7Ð P Ðó óÓ  ÓÌà 4 àIn€1950,€Willie€Wonta€and€his€wife,€Ruth,€purchased€Hershey€Acres,€a€vacant€twoÐ ( Ø Ðacre€lot€in€Cumberland,€Maryland,€in€fee€simple€as€Tenants€by€the€Entirety.TheyÐ  Ä Ðeventually€constructed€a€chocolate€factory€thereon.€€A€few€years€later,€Willie€purchasedÐ  ° Ðan€adjacent€half„acre€lot€that€was€used€as€a€parking€facility€for€the€chocolate€factory.€€Ð ì œ ÐÑ  Ñà0 4 àà Ü àÐ 4ü!4ü! Ðà 4 àWillie€and€Ruth€lived€comfortably€from€the€profits€of€the€chocolate€factory€forÐ Ä t Ðdecades€and€Willie€hoped€that€their€only€child,€Kissy,€would€one€day€take€over€theÐ °` Ðoperation€of€the€family€chocolate€business.€However,€as€Kissy€came€of€age€she€venturedÐ œL  Ðoff€into€her€own€career,€much€to€Willie's€dismay.Ð ˆ8  ÐÐ Ѐà 4 àOn€December€15,€2008,€Willie€entered€into€a€written€agreement€tosell€ð ðhisÐ `  Ðpropertyðð€to€his€two€veteran€chocolate€factory€employees,€Lucy€and€Ethel,€for€theÐ Lü  Ðpurchase€price€of€$1.7€million.Lucy€and€Ethel€paid€$200,000€as€down€payment,€with€theÐ 8è  Ðremainder€due€at€the€scheduled€closing€on€February€20,€2009.Ð $Ô  ÐÐ Ѐà 4 àOn€January€1,€2009,€Ruth€learns€of€Willieððs€plan€to€sell€to€Lucy€and€Ethel€andÐ ü¬ Ðdeclares€she€will€leave€him€if€he€tries€to€take€Kissyððs€inheritance€away.€€Willie€calledÐ è˜ ÐLucy€and€Ethel€the€next€day€and€told€them€he€had€to€cancel€the€deal€due€to€unforeseenÐ Ô„ Ðcircumstances.€€Lucy€and€Ethel€angrily€informed€him€that€he€had€no€choice€and€settlementÐ Àp Ðon€the€entire€two€and€one„half€(2€ðð)€acres€would€take€place€as€scheduled.Ð ¬\ ÐÑ  ÑÌò òà 4 àa.à Œ àLucy€&€Ethel€come€to€you€and€ask€what€rights€do€they€have.€€WhatÐ „4 Ðwould€you€advise?€€Discuss€fully.Ð p  ÐÌà 4 àb.à Œ àWhat€defenses€might€be€raised€by€Willie€and€Ruth?ó óÝ‚*ÿÿÿÝò òÝ  ÝÐ Hø ÐÝ‚*ÿÿÿ^ƒÝó óÝ  ÝÌÌÓ  Óò òREPRESENTATIVE€ANSWER€1ó óÐ  "¼ ÐÓ  ÓÌTenancy€by€the€entirety:Ð ä#” ÐÌà 4 àUnder€Maryland€law,€when€a€married€couple€takes€a€property€as€a€tenancy€by€theÐ ¼%l! Ðentirety€they€both€jointly€own€the€right€to€all€of€the€property€and€each€has€a€right€ofÐ ¨&X" Ðsurvivorship.€This€is€similar€to€a€joint€tenancy€however€unlike€a€joint€tenancy,€anyÐ ”'D # Ðattempts€to€transfer€an€interest€will€not€destroy€a€tenancy€by€the€entirety€the€way€it€willÐ €(0!$ Ðdestroy€a€joint€tenancy.€Not€only€that,€but€any€attempt€to€transfer€a€tenancy€by€the€entiretyÐ l)"% Ðwill€be€held€to€be€void.Ð X*#& ÐÑ  ÑÌà 4 àBecause€Willie€and€Ruth€bought€the€lot€that€the€factory€is€built€on€as€a€tenancy€byÐ 0,à$( Ðthe€entirety€the€attempted€transfer€to€Lucy€and€Ethel€will€be€held€to€be€void.Ð P ÐÌà 4 àThis€will€not€protect€the€parking€lot€however.Because€Willie€bought€the€land€forÐ ( Ø Ðthe€parking€lot€by€himself,€it€is€not€subject€to€the€same€protections€of€the€tenancy€by€theÐ  Ä Ðentirety.As€a€result,€the€tenancy€by€the€entirety€does€not€protect€the€parking€lot.Ð  ° ÐÌÑ  ÑMisrepresentation:Ð Ø ˆ ÐÌà 4 àA€separate€action€for€misrepresentation€may€also€arise€because€Willie€madeÐ °` Ðassurances€that€he€was€legally€allowed€to€sell€the€land€in€question.€If€it€is€shown€that€heÐ œL  Ðmerely€intended€to€sell€the€parking€lot€for€the€price€of€$1.7€million€and€he€implied€that€theÐ ˆ8  Ðfactory€was€included€then€he€could€be€found€liable€on€a€misrepresentation€theory.€€ThisÐ t$  Ðwould€involve€showing€a€devious€intent€as€well€as€false€statements€which€were€relied€onÐ `  Ðduring€negotiations.€€Parol€evidence€would€be€admissible€to€show€whether€or€not€WillieððsÐ Lü  Ðmisstatements€amounted€to€an€actionable€misrepresentation.Ð 8è  ÐÑ  ÑÌStatute€of€Frauds:Ð À ÐÌà 4 àA€contract€for€the€sale€of€land€must€give€adequate€description€of€the€propertyÐ è˜ Ðwhich€is€being€sold.€€If€it€does€not,€then€it€violates€the€stature€of€frauds€and€the€agreementÐ Ô„ Ðis€voidable€by€the€person€against€whom€it€is€being€enforced.€€Here,€the€description€of€theÐ Àp Ðland€is€merely€ð ðhis€propertyðð€referring€to€Willy.€€A€court€will€almost€certainly€find€thatÐ ¬\ Ðthis€description€is€insufficient€to€describe€the€property€at€issue€in€this€case.€€As€a€resultÐ ˜H Ðthis€agreement€violates€the€statute€of€frauds€and€the€contract€will€be€held€to€beÐ „4 Ðunenforceable.Ð p  ÐÌLucy€and€Ethelððs€Final€Rights:Ð Hø ÐÌà 4 àLucy€and€Ethel€still€should€be€able€to€get€their€down€payment€back€plus€interestÐ  !Ð Ðunder€a€theory€of€quantum€merit.€€This€is€a€quasi€contract€theory€which€guards€againstÐ  "¼ Ðunjust€enrichment€in€cases€where€a€contract€is€found€not€to€exist.€Because€Willie€shouldÐ ø"¨ Ðnot€be€entitled€to€any€of€the€$200,000€down€payment,€that€should€be€returned€along€withÐ ä#” Ðany€interest€or€incidental€damages.Ð Ð$€  ÐÌÌÑ  ÑÓ  Óò òREPRESENTATIVE€ANSWER€2Ð ”'D # Ðó óÓ  ÓÌÓ€ =23456789:(ÿÿ08MÓÓ ÔþÓà Ü àLucy€and€Ethelððs€rights€Ð l)"% ÐÓ ÔþÓÌà 4 àConflict€of€Interest€rules€prohibit€an€attorney€from€representing€two€clients€whereÐ D+ô#' Ðtheir€interests€are€materially€adverse€or€potentially€adverse€unless€the€attorney€reasonablyÐ 0,à$( Ðbelieves€that€representation€will€not€be€limited€and€the€clients€give€informedÐ P Ðconsent.Here,€Lucy€and€Ethel€are€both€asking€for€representation.€€As€they€contracted€toÐ <ì Ðbuy€the€property€together,€their€interests€are€not€materially€adverse.Ð ( Ø ÐÑ  ÑÌà 4 àA€contract€for€the€sale€of€land€must€adhere€to€the€statute€of€frauds.Here,€WillÐ  ° Ðcontracted€with€Lucy€and€Ethel€to€sell€his€property€for€the€price€of€1.7€million.Statute€ofÐ ì œ ÐFrauds€requires€that€the€agreement€be€in€writing,€describe€the€property,€and€have€theÐ Ø ˆ Ðsignature€of€the€party€against€whom€action€is€sought.Here,€the€written€agreement€onlyÐ Ä t Ðnoted€ð ðhis€property.ððÐ °` ÐÌà 4 àWhen€a€contract€for€the€sale€of€land€is€breached,€the€non„breaching€party€isÐ ˆ8  Ðusually€entitled€to€specific€performance.Here,€if€a€contract€is€found,€Lucy€and€EthelÐ t$  Ðwould€be€entitled€to€specific€performance.Ð `  ÐÌà 4 àIn€this€case,€Willieððs€half„acre€lot€is€only€his€and€would€be€considered€hisÐ 8è  Ðproperty,€thus€Lucy€and€Ethel€should€be€entitled€to€enforce€the€contract€with€respect€to€theÐ $Ô  Ðhalf€acre€parking€lot€and€get€specific€performance€for€it.€However,€the€1.7€millionÐ À Ðcontract€price€may€be€considered€unjust€and€not€enforced€with€respect€to€the€parking€lotÐ ü¬ Ðalone.€€€Given€the€vagueness€of€the€contract€and€other€defenses€by€Willie€and€Ruth,€aÐ è˜ Ðcontract€with€respect€to€the€chocolate€factory€is€unlikely.Ð Ô„ ÐÌà 4 àWhen€no€valid€contract€exists€a€party€may€still€sue€under€quasi€contract€orÐ ¬\ Ðpromissory€estoppel.Under€quasi€contract,€a€party€may€sue€to€prevent€unjustÐ ˜H Ðenrichment.Here,€Lucy€and€Ethel€have€given€Will€$200,000,€thus€he€has€been€unjustlyÐ „4 Ðenriched.€Lucy€and€Ethel€can€sue€for€the€money€back.Promissory€estoppel€estops€a€partyÐ p  Ðfrom€denying€the€validity€of€a€contract€where€the€other€has€detrimentally€relied€to€theÐ \  Ðextent€of€the€reliance.Here,€Lucy€and€Ethelððs€reliance€only€amounted€to€a€loss€ofÐ Hø Ð$200,000.€€Thus,€Lucy€and€Ethel€may€sue€to€recover€the€$200,000.Ð 4 ä ÐÌÑ  Ñb.€Willie€and€Ruthððs€defensesÐ  "¼ ÐÌà 4 àTenants€by€the€Entirety€(ð ðt/eðð)€will€be€found€where€a€married€couple€has€interestÐ ä#” Ðin€property€that€was€acquired€under€the€unities€of€time,€title,€possession,€andÐ Ð$€  Ðinterest.Here€there€is€a€tenancy€of€the€entirety€as€states€with€respect€to€the€2€acres€onÐ ¼%l! Ðwhich€the€chocolate€factory€sits.Ð ¨&X" ÐÑ  ÑÌà 4 àGenerally,€a€t/e€may€only€be€severed€by€divorce€(or€upon€death€wherein€theÐ €(0!$ Ðsurvivor€owns€in€fee€simple)€and€no€one€party€can€convey€or€devise€the€interest.Thus,Ð l)"% Ðany€contract€purporting€to€convey€the€interest€in€property€owned€as€t/e€is€invalid.€Thus,Ð X*#& ÐWillie€and€Ruth€will€defend€on€the€ground€that€the€contract€cannot€be€interpreted€toÐ D+ô#' Ðinclude€the€2„acre€land€with€chocolate€factory.Ð 0,à$( Їà 4 àWillie€may€also€defend€on€the€ground€that€the€contract€is€vague€and€does€notÐ P Ðspecify€the€property€he€intends€to€sell.€Ð <ì ÐÓatÓÑ  ÑÓ  Óò òà@..àÌÓÓÑ€KOaÑÖ€LNØÖÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ  ¨&X" ÐÑKOaÑâ KâѰÏÑâ KâÑ  ÑQUESTION€8Ð P ÐÓ  ÓÌÓ XÓó óJohn,€a€Maryland€lawyer,€represents€the€accounting€firm€of€Debit€and€Credit€on€allÐ ( Ø Ðof€its€legal€matters.€Over€the€course€of€many€years,€several€of€the€Debit€and€CreditÐ  Ä Ðaccountants€have€referred€numerous€clients€to€John€for€legal€services.Ð  ° ÐÓ XÓÌà 4 àIn€the€summer€of€2008,€Doris,€an€accountant€at€Debit€and€Credit,€referred€to€John€oneÐ Ø ˆ Ðof€her€clients,€Freebee,€Inc.€(ð ðFreebeeðð).€Freebee€engaged€John€to€provide€advice€on€the€bestÐ Ä t Ðway€to€structure€the€sale€of€a€few€of€Freebeeððs€assets€and€to€assist€Freebee€in€closing€the€sale.Ð °` ÐJohnððs€engagement€letter€contained€only€a€description€of€his€services€and€the€payment€terms.€Ð œL  ÐÌà 4 àA€few€days€prior€to€closing,€Doris€informed€John€that€a€confidential€memorandumÐ t$  Ðhe€prepared€for€use€in€the€Freebee€transaction€was€accidentally€mailed€by€her€to€the€attorneyÐ `  Ðfor€the€prospective€purchaser€of€Freebeeððs€assets.€The€memorandum€revealed€that€FreebeeÐ Lü  Ðhad€to€receive€all€proceeds€of€sale€within€60€days€so€that€it€could€pay€for€other€businessÐ 8è  Ðobligations.€The€attorney€for€the€purchaser€stated€that€the€purchaser€used€the€confidentialÐ $Ô  Ðinformation€to€offer€a€substantially€reduced€price€and€an€expedited€closing€date€would€occur.Ð À ÐConsequently,€Freebee€was€pressed€to€accept€the€unfavorable€offer.Ð ü¬ ÐÌà 4 àJohn€comes€to€you€as€the€managing€partner€of€his€firm€seeking€advice€on€hisÐ Ô„ Ðresponsibilities€to€both€Doris€and€Freebee.€€Ð Àp Ðà 4 àÌà 4 àò òWhat€advice€would€you€give€to€John€regarding€his€ethical€obligations€to€DorisÐ ˜H Ðand€to€Freebee€in€the€matters€described€above€and€in€other€unrelated€matters?€€DiscussÐ „4 Ðyour€reasons€fully.€€€Ð p  Ðó óÌÓ  Óò òREPRESENTATIVE€€ANSWER€€1ó óÐ Hø ÐÓ  ÓÌÓ XÓThis€question€requires€an€analysis€of€a€variety€of€ethical€obligations€that€apply€toÐ  !Ð Ðlawyers.€As€an€initial€consideration,€there€does€not€appear€to€be€a€problem€with€the€referralÐ  "¼ Ðthat€John€has€received€from€Debit€&€Credit,€nor€does€there€appear€to€be€an€ethical€problemÐ ø"¨ Ðwith€the€pattern€of€referrals.€A€lawyer€may€accept€referrals€from€others,€but€Maryland€forbidsÐ ä#” Ða€lawyer€from€transferring€anything€of€value€in€exchange€for€obtaining€referrals.€Here,€theÐ Ð$€  Ðpattern€of€referrals€is€not,€on€its€face,€an€ethical€obligation€(although€it€may€present€aÐ ¼%l! Ðconflicts€problem„„as€described€below)€because€John€does€not€appear€to€by€paying€orÐ ¨&X" Ðotherwise€compensating€Debit€&€Credit€for€these€referrals.Ð ”'D # ÐÓ XÓÌòòRepresentation€of€Both€Debit€&€Credit€and€FreebeeóóÐ l)"% Ðâ âÓ XÓÐ X*#& ÐI€would€advise€John€to€be€careful€in€checking€for€conflicts€with€respect€to€the€clientsÐ P Ðâ âhe€obtains€from€Debit€&€Credit's€referral.€An€attorney€must€not€represent€two€parties€that€areÐ <ì Ðdirectly€adverse,€and€an€attorney€must€also€refrain€from€undertaking€or€continuingÐ ( Ø Ðrepresentation€where€that€representation€would€be€materially€limited€by€the€attorney's€dutiesÐ  Ä Ðto€another€client,€his/her€own€interest,€or€a€third€party.€Here,€the€practice€of€Debit€&€CreditÐ  ° Ðreferring€its€own€clients€to€John€for€representation€in€those€clients'€separate€legal€matters€mayÐ ì œ Ðgive€rise€to€impermissible€conflicts,€for€example€where€a€dispute€arises€between€theÐ Ø ˆ Ðaccounting€firm€and€its€client.€In€such€a€case,€if€a€dispute€arises,€John€would€be€representingÐ Ä t Ðtwo€directly€adverse€parties.€In€other,€less€severe€instances,€John€could€obtain€informationÐ °` Ðfrom€one€client€that€would€hinder€his€representation€of€the€other.Ð œL  ÐÐ ˆ8  ÐWith€respect€to€John's€representation€of€Freebie,€there€was€no€conflict€of€interest€atÐ t$  Ðthe€beginning€of€his€representation€of€Freebie,€but€now€that€Doris€accidentally€mailed€theÐ `  Ðletter,€a€conflict€has€arisen.€Freebee€may€have€a€claim€against€Debit€&€Credit€due€to€the€actsÐ Lü  Ðof€its€agent,€Doris.€John€owes€a€professional€duty€to€communicate€any€helpful€informationÐ 8è  Ðthat€he€receives€to€his€client,€but€he€also€owes€a€duty€of€confidentiality.€John€has€learnedÐ $Ô  Ðabout€the€accidental€mailing€from€Doris,€and€he€has€a€duty€of€confidentiality€with€respect€toÐ À Ðthat€information€in€his€representation€of€Debit€&€Credit.€John€also,€however,€has€a€duty€ofÐ ü¬ Ðcommunication€to€tell€Freebee€about€the€inadvertent€mailing.€John€cannot€fulfill€his€duty€toÐ è˜ Ðone€client€without€breaching€a€different€ethical€duty€to€another.à ô àÐ Ô„ ÐÐ Àp ÐAs€a€result€of€the€conflict€of€interest,€John€should€withdraw€from€the€representation.Ð ¬\ ÐÓ XÓÌòòEngagement€LetteróóÐ „4 ÐÓ XÓÐ p  ÐJohn's€engagement€letter€does€not€violate€any€rules€of€professional€conduct.€€The€onlyÐ \  Ðtype€of€engagement€letter€that€òòmust,€óóaccording€to€the€Maryland€Professional€Rules,€be€inÐ Hø Ðwriting,€is€a€contingency€fee€arrangement.€The€facts€here€do€not€state€that€John€and€FreebieÐ 4 ä Ðhave€a€contingency„fee€arrangement,€and€by€that€omission,€they€imply€that€this€is€an€hourlyÐ  !Ð Ðarrangement.€As€such,€it€is€not€a€breach€of€John's€ethical€obligations.€Nevertheless,€as€theÐ  "¼ Ðmanaging€partner€of€the€law€firm,€I€would€suggest€that,€in€the€future,€John€should€moreÐ ø"¨ Ðcompletely€draft€his€letters€of€engagement€to€detail€the€scope€of€the€representation,€theÐ ä#” Ðobjectives,€and€detail€the€payment€plan,€explaining€how€John€will€handle€payments,€the€trustÐ Ð$€  Ðaccount€of€the€firm,€and€standard€billing€practices.Ð ¼%l! ÐÓ XÓÌòòConfidential€InformationóóÐ ”'D # ÐÓ ÓÐ €(0!$ ÐAs€already€discussed,€all€attorneys€have€an€ethical€duty€to€maintain€the€confidentialityÐ l)"% Ðof€their€clients'€information.€Here,€it€is€not€entirely€clear€how€Doris€came€to€possess€John'sÐ X*#& Ðconfidential€memorandum€about€Freebee's€transaction.€There€is€an€implied€authority€in€anÐ D+ô#' Ðattorney„client€relationship€that€an€attorney€may€disclose€information€to€the€extent€that€suchÐ P Ðdisclosure€is€necessary€to€pursue€the€objectives€of€the€client€representation.€Here,€the€factsÐ <ì Ðare€unclear€whether€John's€disclosure€of€the€information€to€Doris€was,€in€fact,€in€furtheranceÐ ( Ø Ðof€his€representation€of€Freebee.€Specifically,€it€is€not€clear€why€Doris€would€be€workingÐ  Ä Ðwith€John's€memo€that€described€the€terms€under€which€Freebee€would€sign€a€contract.€If€theÐ  ° Ðdisclosure€was€outside€the€scope€of€John's€representation€of€Freebee,€then€John€has€violatedÐ ì œ Ðhis€duty€of€confidentiality€to€Freebee.Ð Ø ˆ ÐÓ XÓà Œ àà ä àà < àà ” àÌEven€if€John's€disclosure€to€Doris€of€the€confidential€memo€was€proper,€then€DorisÐ °` Ðwas€acting€as€his€agent.€In€that€principal„agent€relationship,€John€has€violated€the€rules€ofÐ œL  Ðethical€conduct€because€Doris„„„his€agent„„„sent€them€to€the€opposing€counsel's€attorney.Ð ˆ8  ÐÐ t$  ÐÓ XÓòòMalpracticeóóÐ `  ÐÌà 4 àAs€a€final€consideration,€John€may€be€liable€for€malpractice.€An€attorney€owes€a€dutyÐ 8è  Ðof€competence€to€his€client,€and€must€act€as€a€reasonable€professional€would€act€underÐ $Ô  Ðsimilar€circumstances.€Here,€if€he€failed€to€adhere€to€the€reasonable€standard€of€professionalÐ À Ðconduct€in€representing€Freebee,€then€she€could€sue€him€to€recover€her€damages€in€the€sale.Ð ü¬ ÐIf€John€is€liable€for€the€disclosure€to€the€opposing€attorney,€then€he€would€be€liable€forÐ è˜ Ðamount€of€the€price€reduction€that€Freebee€was€"pressed€to€accept"€because€that€reduced€priceÐ Ô„ Ðflowed€causally€from€John's€breach€of€his€professional€duty€of€care.Ð Àp ÐÓ  Óò òÌREPRESENTATIVE€€ANSWER€€2ó óÐ ˜H ÐÓ XÓÑ  ÑÓ ðÓÓ  ÓJohn's€ethical€obligations€to€Doris€and€Freebie€are€complicated€by€the€fact€that,€inÐ „4 Ðmaking€certain€disclosures€(in€the€course€of€his€duties)€to€one€client,€Freebie€he€mayÐ p  Ðviolate€the€confidentiality€of€another,€Debit€and€Credit.Ð \  ÐÓ ðÓÑ  ÑÐ Hø ÐJohn€is€aware€that€Doris,€of€Debit€and€Credit,€accidentally€mailed€the€confidentialÐ 4 ä Ðmemoranda€to€Freebie's€prospective€purchaser,€thus€leading€to€a€substantially€reduced€priceÐ  !Ð Ðand€expedited€closing€date€for€the€sale€of€Freebie's€assets,€a€detriment€to€Freebie.Ð  "¼ ÐÐ ø"¨ ÐThe€actions€of€Doris€may€need€to€be€kept€confidential€by€virtue€of€her€employmentÐ ä#” Ðwith€Debit€and€Credit,€John's€company€client.€John€has€a€duty€to€not€disclose€confidentialÐ Ð$€  Ðinformation€that€would€serve€to€harm€the€company€client.€In€this€situation,€disclosing€theÐ ¼%l! Ðactions€of€Doris€to€Freebie€would€almost€certainly€lead€to€legal€action€against€Debit€andÐ ¨&X" ÐCredit€on€the€part€of€Freebie,€for€mailing€confidential€material€to€the€prospective€purchaserÐ ”'D # Ðof€his€assets.Ð €(0!$ ÐÑ  ÑÓ hÓÐ l)"% ÐHowever,€John€also€has€a€duty€to€Freebie,€to€disclose€any€and€all€informationÐ X*#& Ðrelevant€to€his€representation€of€Freebie,€"providing€advice€on€the€best€way€to€structureÐ D+ô#' Ðthe€sale...,€and€to€assist€Freebie€in€closing€the€sale."€In€addition,€the€Rules€provide€thatÐ P ÐJohn€may,€but€is€not€obligated€to€disclose€Doris's€error,€in€order€to€remedy€a€substantialÐ <ì Ðfinancial€harm.Ð ( Ø ÐÓ ¤hÓÐ  Ä ÐJohn€will€be€bound€by€confidentiality€not€to€disclose€Doris's€actions.€His€dutyÐ  ° Ðto€not€disclose€is€a€mandatory€duty.€His€disclosure€of€information€to€protect€Freebie'sÐ ì œ Ðfinancial€interests€is€permissive.Ð Ø ˆ ÐÓ xÓÓ x¤ÓÐ Ä t ÐHowever,€he€may€have€to€withdraw€from€representation€of€Freebie,€due€to€a€conflictÐ (Ø Ðof€interest.€John€can€no€longer€represent€Freebie,€as€John€is€now€materially€limited,€withÐ Ä  Ðrespect€to€the€extent€of€representation.€Material€limitation€may€exist€where€theÐ °  Ðrepresentation€of€one€client€is€limited€due€to€the€present€responsibilities€and€duties€toÐ ìœ  Ðanother€client.€John's€refusal€to€disclose€Doris's€actions€cannot€be€said€to€be€in€Freebie'sР؈  Ðbest€interests,€and€as€such,€would€make€representation€of€Freebie€highly€unethical,Ð Ät  Ðparticularly€where€Freebie€may€have€a€future€cause€of€action€against€Debit€and€Credit.Ð °`  ÐÑ  ÑÓ xÓÓ XÓÓ xÓÓ  Óò òÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÐ H+ø#& ÐÑQp,Ñâ QâÑËÈÑâ QâÑ  ÑQUESTION€9Ð S Ðó óÓ  ÓÔCEUS.,ÔÌÓ XÓÔUS.,CE.,]ÔIan€owns€real€property€improved€by€a€building€in€Baltimore€City,€Maryland,€onÐ + Ø Ðwhich€he€operates€Sir€Cakes„A„Lot€("Cakes"),€an€upscale€wedding€cake€shop.€€IanððsÐ  Ä Ðprinciple€residence€is€also€located€in€Baltimore€City,€Maryland.€€In€November€2008,€IanÐ  ° Ðreceived€a€commitment€from€Bank€to€borrow€$2,000,000€and€he€agreed€to€provide€theÐ ï œ ÐBank€security€interests€in€the€following€assets€as€collateral€for€the€Loan:Ð Û ˆ ÐÓ XÓÓÜÓÌÓ ¨ýÓÓ ÓA.à ä àthe€land€together€with€the€building,€ovens,€signage,€refrigerators,Ð £P Ðand€built„in€display€cases;Ð ,  ÐÐ [  ÐB.à ä àrolling€baker's€racks,€hand€mixers,€cake€pans,€spatulas,€and€cashÐ 7ä  Ðregisters;Ð À  ÐÐ ïœ  ÐC.à ä àcontracts€for€all€orders€booked€through€calendar€year€2010,€and€theÐ Ëx  Ðpayments€to€be€received€by€Cakes€upon€completion€of€theÐ §T  Ðcontracts;Ð ƒ0 ÐÐ _  ÐD.à ä àflour,€butter,€chocolate,€sugar,€milk,€eggs,€lemon€curd,€cakeÐ ;è Ðtoppers,€extracts,€flavorings,€fruits,€nuts,€and€any€already€baked€andÐ Ä Ðfrozen€cakes€and€cookies€for€tastings€and€sale€to€showroomÐ ó  Ðcustomers;Ð Ï| ÐÐ «X ÐE.à ä àmoney€contained€in€the€cash€registers€($200€each€in€two€registers);Ð ‡4 ÐÐ c ÐF.à ä àthe€Sir€Cakes„A„Lot€delivery€van,€which€was€purchased€new€withÐ ?ì Ðcash€in€2007.Ð È ÐÓ ¨ýÓÓ ÓÌÌÓ JÓò òWhat€further€steps,€if€any,€must€Bank€take€to€perfect€its€security€interests€in€theÐ ¯ \ Ðabove€listed€assets€of€the€business?€Ð ‹!8 ÐIn€your€answer,€classify€the€collateral,€and€describe€the€manner€in€which€Bank'sÐ ±#^ Ðsecurity€interests€are€perfected€for€each€type€of€collateral.Ð $:  ÐÔS'³³&`ÔÓ SJÓÓ  ÓÓÜÓREPRESENTATIVE€€ANSWER€€1Ð '³! ÐÓ XÓó óÓ  ÓGenerally€all€property€can€be€perfected€by€taking€possession€of€it.€[9„313]Ð E(ò " ÐHowever,€this€may€not€be€feasible€because€the€property€is€needed€for€the€business.Ð 1)Þ!# ÐAdditionally,€the€property€must€have€attached€pursuant€to€9„203€for€the€perfected€securityÐ *Ê"$ Ðinterest€to€be€perfected.Ð  +¶#% ÐÓ SÓÓ XÓÌ(a)€The€collateral€constitutes€a€mortgage€[9„102(56)]€because€it€is€an€interest€in€realÐ ?ì Ðproperty€and€the€fixtures€[9„102(41]€which€include€the€ovens,€building,€refrigerators€andÐ + Ø Ðbuilt„in€display€cases.€However,€some€of€these€items€may€be€considered€equipment€[9„Ð  Ä Ð102(33)]€if€they€are€movable€and€not€attached€as€fixtures.€Here,€a€lien€should€be€filed€inÐ  ° ÐBaltimore€City€for€the€land€and€all€of€the€fixtures€[9„501].€A€financing€statement€shouldÐ ï œ Ðbe€filed€with€SDAT€for€any€equipment.€[9„501€(b)(2)]Ð Û ˆ ÐÌ(b)€The€collateral€is€Equipment€[9„102(33)]€because€these€items€are€not€held€for€sale€andÐ ³` Ðare€being€used€in€the€business.€A€financing€statement€should€be€filed€with€SDAT€pursuantÐ ŸL  Ðto€9„501€to€perfect€the€creditors€rights€in€the€collateral.Ð ‹8  ÐÓ fÓÌÓ  ÓÓ  Ó(c)€The€payments€to€be€received€and€contracts€are€accounts€[9„102(11)]€because€they€areÐ c  Ðthe€right€to€payment€of€a€monetary€obligation.€A€financing€statement€should€be€filed€withÐ Oü  ÐSDAT€pursuant€to€9„501€to€perfect€the€creditors€rights€in€the€collateral.Ð ;è  ÐÓ ´ÓÌ(d)€These€materials€are€inventory€[9„102(48)]€because€they€consist€of€raw€materials,Ð À Ðwork€in€process€and€are€going€to€be€consumed€by€customers.€Even€though€some€will€beÐ ÿ¬ Ðused€for€sale€in€the€showroom€and€not€consumption€they€will€still€be€consideredÐ ë˜ Ðinventory€because€the€primary€purpose€is€to€sell€them.€A€financing€statement€should€beРׄ Ðfiled€with€SDAT€pursuant€to€9„501€to€perfect€the€creditors€rights€in€the€collateral.Ð Ãp ÐÓ ´ÓÌÓ ,Ó(e)€Money€contained€in€the€cash€register€will€be€considered€a€general€intangible€[9„102Ð ›H Ð(42)]€because€that€section€specifically€classifies€it€as€such.€Pursuant€to€[9„313(b)(3)]Ð ‡4 Ðmoney€is€not€perfected€until€possession€is€taken€of€the€assets.€However,€pursuant€to€9„315Ð s  Ðthere€will€be€perfection€in€money€up€until€21€days€after€the€inventory€that€gave€rise€to€theÐ _  Ðmoney€was€sold,€so€long€as€the€inventory€was€perfected.Ð Kø Ð(f)€It€is€likely€the€van€will€be€considered€equipment€of€the€business€[9„102(33)].€However,Ð c! Ðthis€equipment€is€separately€titled€with€the€Department€of€Motor€Vehicles€in€Maryland,Ð O"ü Ðand€therefore,€the€bank€must€ensure€that€its€security€interest€is€notated€on€the€face€of€theÐ ;#è Ðcertificate€"certificate€of€title"€[9„102(10)]€in€order€to€perfect€its€rights€over€otherÐ '$Ô Ðcreditors.€There€is€no€need€to€file€a€financing€statement€so€long€as€there€is€attachment,Ð %À Ðwhich€there€was€in€this€situation€because€of€the€value€given€by€the€bank,€perfection€willÐ ÿ%¬  Ðoccur€by€notating€the€lien€on€the€certificate€of€title.€[9„311€(a)(2)].ò òÐ ë&˜! ÐÓRkÓÓ  ÓÌÐ +È## ÐREPRESENTATIVE€€ANSWER€€2Ð S ÐÓÜsÓà 4 àó óThe€bank€is€seeking€to€create€a€security€interest,€which€is€created€when€a€creditorÐ k  Ðgives€value€in€exchange€for€an€interest€in€collateral€to€secure€the€repayment€of€a€debt.€AÐ W  Ðsecurity€interest€is€attached€once€the€creditor€gives€value,€there€is€a€security€agreement,€andÐ C ð Ðthe€debtor€obtains€rights€in€the€collateral.€Once€attached,€the€security€interest€becomesÐ / Ü Ðenforceable.Ð  È ÐA.à 4 àThe€land,€together€with€the€building,€oven,€signage,€refrigerators€and€built„in€displayÐ 3à Ðcases:€This€collateral€constitutes€real€property€(land€together€with€building)€and€fixtures,Ð Ì Ðitems€that€become€so€affixed€to€real€property€that€they€become€part€of€the€real€property€(oven,Ð  ¸  Ðsignage,€refrigerators,€and€built„in€display€cases).€To€collateralize€these€items,€the€BankÐ ÷¤  Ðshould€get€a€mortgage,€a€security€interest€in€real€property€that€secures€the€repayment€of€a€debtÐ ã  Ðby€permitting€the€mortgagee€to€sell€upon€default.€This€mortgage€should€be€filed€in€the€landÐ Ï|  Ðrecords.Ð »h  ÐB.à 4 àEquipment:€Equipment€is€defined€as€"goods€other€than€inventory,€farm€products,€orÐ Ó€  Ðconsumer€goods."€Here,€the€rolling€baker's€racks€(not€fixtures€because€moveable),€handÐ ¿l Ðmixers,€cake€pans,€spatulas,€and€cash€registers€are€equipment€because€they€were€purchasedÐ «X Ðfor€the€use€in€a€commercial€enterprise€(as€opposed€to€personal€use)€for€Sir€Cakes„A„Lot.€AÐ —D Ðsecurity€interest€can€be€perfected€either€by€possession€or€attachment.€However,€for€Sir€Cakes„Ð ƒ0 ÐA„Lot€to€continuing€using€this€collateral,€the€Bank€must€perfect€by€filing.€This€may€beÐ o Ðsecured€under€Art.€9€and€the€Bank€must€perfect€this€interest€by€filing€a€financing€statementÐ [ Ðwith€SDAT,€describing€the€collateral€and€providing€the€debtor's€name€accurately€in€theÐ Gô Ðrecords.Ð 3à ÐÓ ´ÓC.à 4 àAccounts:€"Accounts"€is€described€in€Art.€9€as€"a€right€of€payment€of€monetaryÐ K ø Ðobligation,€whether€or€not€earned,€by€performance...for€services€rendered€or€to€beÐ 7!ä Ðrendered."€The€"Contracts€for€all€orders€booked€through€calendar€year€2010,€and€theÐ #"Ð Ðpayments€to€be€received€by€Cakes€upon€completion€of€the€contracts,"€constitute€"accounts"Ð #¼ Ðunder€Art.€9.€To€perfect€this€interest,€because€it€is€intangible,€it€must€be€perfected€by€filingÐ û#¨ Ða€financing€statement.Ð ç$” ÐÓ ´ÓD.à 4 àInventory:€inventory€is€"goods,€other€than€farm€products€which€are€leased,€or€held€forÐ ÿ&¬ Ðsale€by€a€person,€and€they€"consist€of€raw€materials€...€or€materials€used€or€consumed€in€aÐ ë'˜  Ðbusiness."€Flour,€butter,€chocolate,€sugar,€milk,€eggs,€lemon€curd,€cake€toppers,€extracts,Ð ×(„! Ðflavorings,€etcð8ð€are€all€items€used€in€the€business€of€Sir€Cakes€A€Lot€to€produce€cakes.Ð Ã)p" ÐBecause€the€business€will€need€to€be€in€possession€of€these€items,€the€Bank€should€file€aÐ ¯*\#  Ðfinancing€statement€with€SDAT,€describing€the€collateral€and€claiming€a€security€interest.€AnÐ ›+H$! Ðinterest€in€the€proceeds€of€inventory€is€usually€implied,€but€the€Bank€may€want€to€alsoÐ S Ðinclude€an€after€acquired€property€clause€for€extra€protection.Ð ?ì ÐE.€€à 4 àMoney:€Money€can€be€collateralized€under€Art.€9€as€money,€but€to€perfect,€the€bankÐ W  Ðmust€take€possession€of€the€$200€in€each€of€the€two€registers.Ð C ð ÐF.à 4 àVehicle:€The€Sir€Cakes€A€Lot€Delivery€van€is€likely€used€as€equipment,€see€above,Ð [  Ðbut€it€is€also€a€vehicle€subject€to€titling€laws.€Therefore,€to€perfect€this€interest,€the€BankÐ Gô Ðshould€file€an€application€with€the€MVA€to€place€its€name€on€the€certificate€of€title€as€theÐ 3à Ðsecured€party,€to€put€others€on€notice€of€its€interest,€and€pay€the€applicable€fee€to€the€MVA.Ð Ì ÐÓ3-Óò òÓ  ÓÓÓÌÌÌÌÌÌÌÌÌÌÌÌÐ W+$ ЇQUESTION€10Ð S Ðó óÓ  Óà 4 àIn€March€2006,€as€Maryland€State€Senator€Smith€walked€home€from€work€he€wasÐ k  Ðrobbed€and€violently€assaulted.€€While€struggling€with€the€suspect,€Smith€scratched€theÐ W  Ðsuspect€and€pulled€strands€of€hair€from€the€suspectððs€head.€€The€police€were€able€to€use€theseÐ C ð Ðitems€to€produce€a€DNA€profile€of€the€attacker.€€Senator€Smith€also€provided€a€vagueÐ / Ü Ðdescription€of€the€suspect€and€advised€the€police€that€the€suspect€reeked€of€alcohol.€€TheÐ  È Ðauthorities,€however,€were€unable€to€identify€a€suspect€even€after€an€extensive€policeÐ ´ Ðinvestigation.Ð ó  Ðà 4 àAngered€by€the€attack€upon€him,€Senator€Smith€introduced€a€bill€that€became€law€inÐ  ¸  ÐOctober€2007,€which€required€every€person€convicted€of€a€Driving€While€Impaired€offenseÐ ÷¤  Ðð ðDWI,ðð€to€submit€to€a€blood€test€to€provide€DNA€for€identification€purposes.€€Ð ã  Ðà 4 àIn€December€2007,€Al€Key€Hall€was€convicted€of€a€DWI.€€After€conviction€Hall€wasÐ û¨  Ðrequired€to€provide€a€DNA€sample€pursuant€to€the€new€law.€€Hall€protested€the€DNA€process,Ð ç”  Ðrefused€to€provide€a€sample€and€stated€that€he€wanted€counsel.€€Despite€his€protests€Hall€wasÐ Ó€  Ðforced€to€provide€a€blood€sample€because€of€his€DWI€conviction.€€Upset€by€the€process,€HallÐ ¿l Ðwent€to€his€gym,€ð ðThe€Brick€House,ðð€to€blow€off€some€steam.€€While€working€out,€Griffin,Ð «X Ðthe€gym€security€guard,€asked€Hall€why€he€was€wearing€a€bandage€on€his€arm.€€HallÐ —D Ðresponded€by€stating€that€the€cops€made€him€give€a€DNA€sample.€€Griffin€then€asked€HallÐ ƒ0 Ðwhat€was€the€big€deal€about€that.€€Hall€responded€by€stating€that€Griffin€was€right,€after€allÐ o Ðhe€had€not€done€anything€really€bad€since€he€knocked€that€politician€in€the€head€last€year.€€Ð [ ÐÌà 4 àThe€DNA€profile€of€Senator€Smithððs€attacker€was€ultimately€submitted€to€theÐ _  ÐMarylandDNA€data€bank€for€comparison€in€order€to€discover€the€identity€of€his€attacker.€Ð K ø ÐThe€attacker's€profile€matched€the€DNA€profile€from€Hallððs€2007€sample.€Ð 7!ä Ðà 4 àAs€a€result€of€the€DNA€profile€match,€and€both€Griffin€and€Smithððs€testimony,€HallÐ O#ü Ðwas€indicted€by€a€Maryland€Grand€Jury€on€the€charges€of€assault€and€robbery.€€Hall€hasÐ ;$è Ðretained€you€as€counsel€to€challenge€the€admissibility€of€the€DNA€and€other€evidenceÐ '%Ô Ðobtained€from€him€in€December€2007.Ð &À Ðò òà 4 àWhat€arguments€will€you€make€at€trial€on€behalf€of€Hall?€€How€do€you€expectÐ +(Ø  Ðthe€State€to€respond?€ó óÐ )Ä! ÐÓ  Óò òÐ /+Ü# ЇREPRESENTATIVE€ANSWER€1ó óÐ S ÐÓ  Óà 4 àAlthough€this€situation€raises€several€constitutional€issues,€Hall€will€not€likely€be€ableÐ k  Ðto€suppress€the€evidence€obtained.Ð W  ÐDNA€Ð o  Ѐ€€€à 4 à€òòFifth€Amendmentóó€ð!ð€There€were€two€DNA€samples€involved€in€the€matchð"ðtheÐ ‡4 Ðsample€obtained€from€Smith€and€the€sample€obtained€in€jail€from€Hall.€€In€terms€of€theÐ s  Ðsample€obtained€in€jail,€Hall€may€try€to€argue€that€being€forced€to€give€a€sample€of€his€DNAÐ _  Ðviolated€his€constitutional€right€against€self„incrimination.€€However,€the€Fifth€AmendmentÐ Kø  Ðonly€applies€to€testimony,€not€DNA,€so€he€is€not€likely€to€prevail.Ð 7ä  Ѐ€€€à 4 à€òòFourth€Amendmentóó€ð!ð€Hall€may€also€argue€that€his€fourth€amendment€rights€againstÐ Oü  Ðunreasonable€searches€and€seizures€were€violated€by€having€to€submit€to€providing€a€DNAÐ ;è  Ðsample.€€Hall€is€unlikely€to€prevail€because€as€a€prisoner€he€has€a€lesser€reasonableÐ 'Ô  Ðexpectation€of€privacy€in€jail.€€Moreover,€the€act€of€having€his€DNA€taken€is€likely€to€be€seenÐ À  Ðonly€as€a€reasonable€intrusion,€even€if€he€did€have€such€a€right.Ð ÿ¬  ÐÓ XÓòòEx€Post€Factoóó€ð!ð€Hall€may€also€argue€that€the€application€of€a€2007€enacted€DNA€law,Ð Ä Ðin€conjunction€with€gathering€evidence€for€a€crime€committed€in€2006,€violates€his€rightÐ ° Ðagainst€ex€post€facto€laws.€€However,€the€DNA€law€doesnððt€involve€a€new€crime€that€he€isÐ ïœ Ðbeing€charged€for,€or€an€extended€sentenceð"ðbut€merely€provides€the€government€withÐ Ûˆ Ðadditional€investigation€tools.€€Accordingly,€Hall€wonððt€likely€prevailÐ Çt ЀòòFourteenth€Amendment€Right€to€Privacyóó€ð!ð€Hall€may€assert€that€his€fourteenthРߌ Ðamendment€right€to€privacy€was€violated€by€having€to€submit€DNA,€and€that,€moreover,€dueÐ Ë x Ðprocess€protects€him€from€having€to€make€involuntary€confessions.€€However,€because€thereÐ ·!d Ðwas€no€involuntary€ð ðconfession,ðð€in€terms€of€an€actual€statement,€he€wonððt€likely€prevail.€Ð £"P ÐMoreover,€the€limited€privacy,€discussed€òòsupraóó,€will€also€defeat€this€argument.Ð #< ÐòòRight€to€Counseló󀄀€Hall€requested€counsel€as€his€DNA€sample€was€collected,€and€heÐ §%T Ðwill€likely€argue€unsuccessfully,€that€his€5òòthóó€and€6òòthóó€Amendment€Rights€to€Counsel€wereÐ “&@ Ðviolated.Ð ',  Ѐ€òò5òòthóó€Amendment€Right€to€Counselóó€ð!ð€A€Court€would€not€likely€find€that€Hallðð€fifthÐ —)D" Ðamendment€òòMirandaóó€rights€were€violated,€even€though€he€asked€for€his€lawyer,€becauseÐ ƒ*0# ÐòòMirandaóó€requires€a€custody€and€an€interrogation.€€The€security€guard€was€not€a€lawÐ o+$ Ðenforcement€officer€and€he€was€not€compelled€to€give€the€statement.€€Thus,€his€confession„Ð S Ðlike€statement€wonððt€likely€be€suppressed.Ð ?ì ÐÑ  ÑÐ W  ÐÑ  Ñ€€òò6òòthóó€Amendment€Right€to€Counselóó€ð!ð€Because€Hall€hadnððt€yet€been€charged€with€theÐ o  Ðoffenses€against€Smith€when€his€DNA€sample€was€taken,€his€sixth€amendment€right€toÐ [  Ðcounsel,€which€would€require€the€presence€of€his€lawyer€when€being€questioned,€would€notÐ Gô Ðapply.€€Thus,€the€evidence€will€likely€be€admitted€against€Hall.Ð 3à ÐÓ  Óò òÓ KXÓREPRESENTATIVE€ANSWER€2Ð Kø  Ðó óÓ XKVŸÓÓ  ÓòòConstitutional€IssuesóóÐ c  ÐDNA€EvidenceÐ {(  ÐThe€DNA€sample€obtained€from€Hall€would€be€challenged€€as€a€violation€of€the€4òòthóóÐ “@  Ðand€5òòthóó€Amendments€and€the€ex€post€facto€clause.Ð ,  Ðòò4òòthóó€AmendÐ —D  ÐóóThe€fourth€Amendment,€applicable€to€Maryland€through€the€14òòthóó€Amendment€ofÐ ¯\  Ðthe€U.S.€Constitution,€protects€individuals€from€unlawful€searches€and€seizures.€€Here,€theÐ ›H Ðcollection€of€a€DNA€sample€could€be€considered€a€seizure€of€his€person€and€search.€Ð ‡4 ÐNevertheless,€to€challenge€on€the€basis€of€the€4òòthóó€Amendment,€someone€must€have€aÐ s  Ðreasonable€expectation€of€privacy.€€In€this€instance,€Hall,€as€a€convicted€drunk€driver,€willÐ _  Ðbe€considered€to€have€less€of€an€expectation€of€privacy.€€Additionally,€there€is€a€veryÐ K!ø Ðlimited€intrusion€by€using€a€blood€sample,€and€this€will€be€balanced€against€theÐ 7"ä Ðgovernmentððs€interest€in€obtaining€the€sample.€€Thus,€the€Court€will€most€likely€denyÐ ##Ð ÐHallððs€4òòthóó€Amendment€challenge.€Ð $¼ Ðòò5òòthóó€AmendÐ '&Ô ÐóóThe€5òòthóó€Amendment,€through€the€14òòthóó€protects€someone€from€self„incrimination.€Ð ?(ì  ÐAlthough€it€could€be€argued€that€by€providing€the€DNA€sample,€Hall€incriminatedÐ +)Ø! Ðâ âhimself€related€to€the€2006€crime,€the€Court€will€not€agree€with€this€argument.€€The€5òòthóóÐ *Ä" ÐAmend€only€protects€òòtestimonial€óóevidence€and€DNA€is€not€testimonial€in€nature.€€Thus,Ð S Ðthe€Court€will€reject€Hall€challenge€to€the€DNA€Act€on€grounds€of€the€5òòthóó€Amendment.Ð ?ì Ðâ âòòEx€Post€Facto€ClauseÐ W  ÐóóThe€ex€post€facto€clause€of€the€U.S.€Constitution€prohibits€the€government€fromÐ o  Ðenacting€laws€that€retroactively€punish€someone€for€something€that€was€not€a€crime€whenÐ [  Ðthey€committed€it.€€Here,€submitting€a€DNA€sample€is€not€punishment€for€the€earlierÐ Gô Ðcrimes.€€Thus,€the€Court€will€reject€Hall€argument€on€this€ground€as€well€because€theÐ 3à ÐDNA€Act€is€not€punitive€in€nature.€€The€fact€that€the€DNA€€sample€was€used€to€connectÐ Ì Ðhim€to€the€2006€robbery€is€immaterial.Ð  ¸  ÐÑ  ÑòòHall€StatementóóÐ #Ð  ÐChallenges€to€the€admissibility€of€Hallððs€statement€that€ð ðafter€all€he€had€not€doneÐ ;è  Ðanything€really€bad€since€he€knocked€that€politician€in€the€head€last€year,ðð€on€the€basis€ofÐ 'Ô  Ðthe€5òòthóó€and€6òòthóó€Amendments.Ð À  ÐAn€argument€could€be€made€that€this€statement€should€be€excluded€because€it€wasÐ +Ø  Ðobtained€without€òòMirandaóó€warnings,€in€violation€of€Hallðð€5òòthóó€Amendment€right€to€not€self„Ð Ä Ðincriminate.€€Nevertheless,€this€is€probably€a€weak€argument€because€the€gym€securityÐ ° Ðguard€is€not€likely€a€law€enforcement€agent.€€Also,€he€not€being€interrogated€at€the€timeÐ ïœ Ðhe€made€his€statement.€€The€Court€will€likely€admit€the€evidence€on€this€ground.Ð Ûˆ ÐÑ  ÑHall€can€also€say€his€right€to€counsel€under€the€5òòthóó€and€6òòthóó€Amendments€violatedÐ ó  Ðhis€rights.€€But€he€was€not€at€a€ð ðcritical€stage,ðð€it€was€unrelated€to€his€trial€from€before,Рߌ Ðand€he€voluntarily€made€the€statement.Ð Ë x ÐÔ#†XýÌXXTXýÌ #ÔÓ…ÓÓ¥ŸÓò òó óÑ  Ñ