WPCg "fw/#aٽp$1 fq^,;1"fwc049yҩlVyDTRhG=T5}zۏ)ګ~^zNb[K2sY].4ho!v_d"'&MuوRtU*^÷4SO" lNCl87 ')Jo \-ڑP`O=Ͼ2TA:5~fjmpqAKMnj\6mÉ-(+Ew$ ?q*B)3vgaNsv ^MnzZl*;O%l).xf<GPO)Ygzk(εmUe|\4J,c1_  AN.,I2칷&Pe= =.l:0J02M*v ٻ5 :pa/Hu,U7>z  0f 0u 0<e 0)< 0: 0. 0J 04 0B  0<b 0(p 0  0 0 0%hy 0uF 0  0 0( B D3 AQ&wU'FUFUJ D+[ Aw! 0(" AM"o#@##o%@g&o&o (@((o*@[+"c+"+ B++ 0 C+^,3s2"7"7"7" 8".8"P8"r8"8"8"8"8"9">9"`9"9"9"9"9" :",:bN:"="="=">:8>"rB"BnB"$F"FF"hF"FF"I"IEI"1M"SMOuM"Q"Q"R"*R"LR"nR"R"R"R"R"S":S"\S"~S"S"S"S"T"(T"JT"lT"T"T"T"T"U"8U"ZU"|U"U"U"U"V"&V"HV"jV"V"V]V"-Y"OY qY"b"b"b"b 0: c B-Edrd 0d#8eUNf %GgMMg(QgNyg^ {gwg4gg mg\  `&Times New Roman' IN THE CIRCUIT COURT FOR PRINCE GEORGE=S COUNTY, MARYLAND (MD Court System(0MD Court System .   6* 4Heading 5 X     X 6! 4Heading 6       <:Default Para<:Footnote Ref:8Page Number0D .Footer (#D:X` hp x (#D. ,Title     4 2Subtitle<:Footnote Re1< :Footnote Tex< :Body Text In X  X 0D .Header (#D:X` hp x (#D4'' 2s438051d hR ,     hR , 8Jt 6Block Text X X 2(` ` hp x 2   \RX` hp x (#\6 4Body Text  v)..      XX  _WGCz h= : p @X@EEoLH 40}o/   T$T$                               T$T$  XsXXsXXXs     s  XXs (2v$ h!..      XX  ݃ Level 1 Level 2 Level 3 Level 4 Level 5(2v$ h!..      XX  (2v$ h!..      XX  ($  d'dxdC<< c  v"..      XX  _! (#X!     ݌̌! X(#!   ! (#X!     ݌̌! X(#!   ! (#X!  g  XsXXsXXXs g݌̌! X(#!  XXs   XsXXsXXXs   1   dd .\  `.Times New Roman TUR7\  `.Times New Roman TURkIA`2WP TypographicSymbols'dxdo&"D&raw Object Text <C HKKKK  v"..      XX  O,ZdO?+ ` hp x (#X?XsX$&N>: \Q/ p8.E Q. Q. Q#    Ё Level 1 Level 2 Level 3 Level 4 Level 5($"#A<< cWPC8.8.!8. C  f r- -%))-%  v"..      XX  K(XKXsX$)N>: \Q p.E Q Q Q    WPC..!. C  V r- -%))-(  v"..      XX  K(XKXsX$,N>: \WQp.oE UPUP UE   WPC.o.o!.o C  r- -%:-+  v"..      XX  K(XKXsX$/N>: \WQp.oE UPUP UE   WPC.o.o!.o C  r- -%:-.         X 'Single1 d($     T h!..      XX  ?+ ` hp x (#X?           1  "  Thisfigureincludedanunauthorizedsalaryunauthorized0 A0 bonuses,0 @0 taking0 A0 dividends0 @0 duringperiods  whennodividendwasissuedtoothermembersandthepaymentofnumerouspersonalexpenseswith q corporatefunds,including,forinstance,hundredsofdollarsinonenightata0 A0 Gentleman0 =0 sClub0 @0 inLas 0 VegaswhereMr.Bootyordered,amongotherthings,a0 A0 champagnelapdance0 @0 onthecompanytab.XsXXsXXXsXXs  ) h!..      XX  ?+ ` hp x (#X?           2  "  OnJanuary6,2003thisCourtorderedthatallfundstakenfromLGBbyJohnBootysinceDecember  17,2002wouldbefrozenpendingfurtherorderoftheCourt.OnJanuary21,2003,afterfindingthatMr. o BootywasabusinghispowertoconvertLGBfundstohisusewithoutauthorization,thisCourtordered .~ that0 A0 DefendantBootybeandherebyisrestrainedfrommakinganypaymentsorexpendituresfromthe = assetsorfundsofLGBGroup,LLC,orincurringanydebtorobligationfororonbehalfofLGBGroup,  LLC.0 @0 SeeCourtOrder.XsXXsXXXsXXs          X          X          X          X          X          X          X          X          X          X  X h!..      XX  ?+ ` hp x (#X?           3  "  Inaddition,whiletheoriginalagreementprovidedforsomevotestobetakenaccordingtothecapital  interestownedbyeachparty,thenewagreementprovidesforalldecisionstobemadebyavoteof o individualmembers,allowingeachmemberasinglecoequalvote.XsXXsXXXsXXs          X          X  0 h!..      XX  9%` ` hp x X9           4    TheprimaryauthorofthisreportwasSandeepSagar,anaccountantlicensedinMarylandwhoisa  namepartnerinthefirm.Mr.Sagartestifiedthatheheadstheaccountingandauditpracticeofhisfirm, o thathehasbeentrainedinbusinessvaluationandthathehasbeenpracticingforovertenyearswhohas .~ hadextensiveexperienceperformingbusinessvaluationsaswellashelpingtooperateanumberof = businessesforaventurecapitalgroup.XsXXsXXXsXXs          X  d h!..      XX  9%` ` hp x X9           5    Mr.Bootyhasnoaccountingdegree,noprofessionallicenses,noeducationortraininginbusiness  valuationandcouldnotdefinekeyconceptswhichLGB0 =0 sexperttestifiedwerenecessarytoperforma o propervaluation.XsXXsXXXsXXs          X          X   h!..      XX  ?+ ` hp x (#X?           6  "  AccordingtoMr.Booty0 =0 stestimonyduringthepunitivedamagesphaseofhistrial,thisishisonly  significantasset.XsXXsXXXsXXs          X  ; h!..      XX  9%` ` hp x X9   ?+ ` hp x (#` ` X?        7  [  Itisimportanttonotethatitisthemerefilingofsuchaclaimthatdivestsanindividualofhis  membershipinanLLCirrespectiveofhowfartheclaimispursuedorwhethertheclaimissuccessful.XsXXsXXXsXXs          X  E h!..      XX  ?+ ` hp x (#X?           8  "  Interestingly,thereisnorequirementthataMarylandlimitedliabilitycompanyhavea0 A0 president.0 @0 See  MarylandCode,CorporationsandAssociationsArticle,Title4A(MarylandLimitedLiabilityCompany q Act). ݌ 0 Ќ         XsXXsXXXs XXs          X          X          X          X          X          X          X          X          X          X          X          X          X          X          X          X          X          X          X  S h!..      XX  ?+ ` hp x (#X?           9  "  $69,343.64+$8,216.61+$2,486.15=$80,046.40XsXXsXXXsXXs          X   h!..      XX  ?+ ` hp x (#X?           10  "  Forthefirsttimeattrial,Mr.Bootyassertedclaimstosalaryanddividendsfor2003.Theseclaimswill  bestrickenbecausetherewerenotpleaded.Moreover,withrespecttohisclaimforsalary,itisprecluded o bythedoctrineofresjudicataasitwasatissueinthepriorcaseandthejuryfoundthatMr.Bootywas .~ notentitledtoasalaryandawardedthesalaryhehadtakentoLGB.SeealsoOperatingAgreement, = Paragraph7.1(0 A0 NoManagerrenderingservicestotheCompanyshallbeentitledtocompensationfor  suchservices.0 @0 ).Withrespecttotheclaimfordividendsfortheyear2003,therewerenodividends m distributed,and,thus,Mr.Bootyisnotentitledtoany.Inthisregard,Ms.Varellatestifiedasfollows: ݌ . ~ Ќ   X X6"` X` p x X6 Q Youareaware,areyounot,thatMr.Bootyhasmadesomeargumentthatheis  = entitledtodividendsin2002and2003?   A Right. k   Q Duringthattimeperiod,didanymemberofLGBreceivedividends? * z  A No.  9     X XH( X` p x (#` X` XH   SeeTrialtranscript,VolumeIII(page756)XsXXsXXXsXXs          X          X (2R$ h!..      XX  sX  0  )Hairline d#|x(h$..      XXHP LaserJet 5M,,,,0(9 Z6Times New Roman RegularX0 a0yweb0.U h!..      XX  _     X           XsXXsXXXs INTHECIRCUITCOURTFORPRINCEGEORGEX+XXXs=XsXXX+SCOUNTY,MARYLAND 8݌  Ќ           b  -  XXs !cSO~ R/  p X@EdR/ R: dR/ -  XsXXsXXXs_LGB_ԀGROUP,LLC,   h      b݌ d Ќ   J  XPlaintiff   h      0   X  f  v. `     h      p CaseNo:CAL0300088  L    2  JOHNBOOTY,   h                X<(` ` hp x (#X<Defendant   h     h X?+ ` hp x (#` ` X?CaseNo.CAE0200408 z   h  -  XXs 'aQM~ R  p @X@E`R R* `R  *aQM~VQ p @X@E`VQV\`VQ-  XsXXsXXXs      0   JOHNBOOTY,   h      0 W ݌ F  Ќ   ,|   XPlaintiff   h      b  X H  v. `     h      p CaseNo:CAL0308305 .     _LGB_ԀGROUP,LLC,etal., h      p        X<(` ` hp x (#X<Defendants   h  v   X?+ ` hp x (#` ` X? \    -  XXs -aQM~VQ p @X@EBVQV\BVQ-  XsXXsXXXs        &  C  OPINIONANDORDEROFCOURTC  eԌ ^ Ќ          !  B  OPINIONANDORDEROFCOURT  CC  ![݌̌    '} XHavingconsideredallclaims,counterclaimsandpendingmotions,thebenchtrialin  thismatterandtheentirefile,theCourtherebymakesthefollowingfindingsoffactand   conclusionsoflaw: X"!  XI. ` Introduction $$t# _2 l<`  X01SubsequenttoajuryX+XXXs=XsXXX+sfindingthatJohnBootystoleover$99,000fromLGB,  4 3  1     ^  hetook   actionsthatthisCourthaspreviouslycharacterizedasX+XXXsAXsXXX+highlyunorthodox,ifnotillegalX+XXXs@XsXXX+Ԁto  abscondwithadditionalfundswithoutauthorization.SeeCourtorderofJanuary21,2003. P ThisCourthasalreadyheldthathisactionsinthisregard(involvingthecreationofa  l fraudulentdocumentpurportingtobeaX+XXXsAXsXXX+CorporateResolutionX+XXXs@XsXXX+)amountedtoX+XXXsAXsXXX+remov[ing]  8 fundsinanunauthorizedmanner.X+XXXs@XsXXX+ԀSeeid.    FacedwithasituationinwhichMr.Bootycontinuedtoabscondwithcorporatefunds   forhisownbenefit,LGBtookactiontodoawaywiththeofficeofthepresidencyand,later, T  tocauseMr.BootyX+XXXs=XsXXX+ssharestobeforfeitedtothecompanyundertheLimitedLiability  p CompanyActduetohisfailuretopaythejudgementagainsthim.AsthisCourthasalready @ found,theseactionsweretakenbyLGBduringatimewhen:     XX  X X X9%` ` hp x X9   absentCourtintervention,theDefendant,JohnBooty(X+XXXsAXsXXX+BootyX+XXXs@XsXXX+),maycontinue  tospend,pledgeorotherwiseencumbertheassetsofLGBGroup,LLC p (X+XXXsAXsXXX+LGBX+XXXs@XsXXX+)withoutappropriateauthorityorapprovalX+XXXsYXsXXX+. ݌ V Ќ X    XX  X 4   4݌̌ X  X X X?+ ` hp x (#` ` X?SeeCourtorderofJanuary21,2003.  5 3  2       Thus,itwasnecessaryforLGBtoact,asitdid,to $t  protectitsinterestsandtheinvestmentsofitsmembers. @  01 0 10XX 1  XHavingbeeneffectivelyremovedaspresidentandasamemberduetohisown   misconduct,Mr.BootynowasksthisCourttoorderhisreinstatement.TheCourthereby | deniesthisreliefbecauseMr.BootyhasnointerestinLGBforthefollowingreasons: H  X X X9%` ` hp x X91. LGBproperlyamendeditsOperatingAgreementtodoawaywiththe  d officeofthepresidency;  J 2. Mr.BootyX+XXXs=XsXXX+sinterestinLGBwasproperlyforfeitedtoLGBunderthe    LimitedLiabilityCompanyAct;    3. LGBhasrequestedthatMr.BootyX+XXXs=XsXXX+sinterestinLGBbegarnishedand z  transferredtoLGBtosatisfyhisdebtthroughtheusualgarnishment b  processandMr.Bootyhasnotopposedthisreliefdespitethefactthatthetime H  fordoingsohaslongpassed;and .~  674. byfilingacomplaintseekingX+XXXsAXsXXX+partitionX+XXXs@XsXXX+ԀofLGB,Mr.Bootyhas J forfeitedhismembershipinLGBpursuanttoSection4A606ofthe 2 CorporationsandAssociationsArticleoftheMarylandCode.   X X X?+ ` hp x (#` ` X?Inaddition,Mr.Bootyhassoughtreimbursementforcertainallegedexpenses.These  reimbursementswillbedeniedforthefollowingreasons: `  X X X9%` ` hp x X91. Noneoftheexpenseswhichwereallegedlynotpaidwerepreviously ,| submittedforreimbursement,whichisaprerequisitetoanyrighttorecover; b 2. Mr.Bootyadmittedthatthatheisnotentitledtoreimbursementfor . $69,343.64ofhisclaimbecausetheOperatingAgreementdoesnotpermit  reimbursementofcapitalcontributions;  3. Mr.Bootyadmittedthathewaspreviouslyreimbursedfor$8,216.61 v!  worthoftheexpensesatissue;and \"! 4. Mr.Bootyadmittedthathewasnotentitledtoreimbursementfor ($x# $2,486.15oftheexpensesatissue. %^ $  X X X?+ ` hp x (#` ` X?Finally,LGBhasrequestedthatjudgementbeenteredagainstMr.Bootyfor &*"& $27,636.65($28,636.65lessthe$1,000alreadyrefunded)forfundsMr.Bootytookfrom (#(  67 6 76XX 7  LGBwithoutauthorizationandwhichthisCourt,viapreliminaryinjunction,hasalready  orderedtobereturned.Forthereasonswhichfollow,judgementwillbeenteredaccordingly. | II. FindingsofFact H ThepresentcasehasitsgenesisineventsofovertwoyearsagoandinvolvesLGB  d Group,LLC,alimitedliabilitycompanywhichownsandoperatesaWorldGym.Atthat  0 pointintime,themembersofLGBwereninehusbandandwifeteamsinwhichthehusband    andwifeeachheldanequalshareinthebusiness,butsomefamiliesheldagreaterinterest x  thanotherfamilies. D  89FellowmembersofthisLLCdiscoveredthatJohnBooty,theformerpresidentofthe ` LLC,wasstealingcompanyassetsthroughavarietyofschemesincludingpayingpersonal , expenseswithcompanyfundswithoutauthorizationandtakinganunauthorizedsalarywhich  washiddenfromtheothermembers.Uponmakingthisdiscovery,thememberssoughtto t removeMr.Bootyaspresidentwithouttheaidofcounsel. @   XX   81  Mr.BootyultimatelysuedLGBallegedlyforimproperlyremovinghimandLGB  \ counterclaimedforthemoneyMr.Bootyhadembezzled.ThejuryfoundthatLGBhadnot ( followedthetechnicalitiesoftheOperatingAgreementinremovingMr.Booty,butawarded  Mr.Bootynodamagesasaresult.ThejuryalsofoundthatMr.Bootyhadinfact p!  misappropriatedasubstantialsumofmoney,$99,789.96.Inessence,thejuryfoundthatMr. <#" Bootyhadstolenthismoney,butthatLGBhadnotcrossedtheX+XXXsAXsXXX+tX+XXXs=XsXXX+sX+XXXs@XsXXX+ԀanddottedtheX+XXXsAXsXXX+iX+XXXs=XsXXX+sX+XXXs@XsXXX+Ԁinits %X $  rushtopreventhimfromabscondingwithmoremoney.Asaresult,theCourtreinstatedMr. &("&  89 8 98XX 9  BootyaspresidentonDecember17,2002andenteredjudgmentagainsthimandinfavorof  LGBfor$99,789.96. 81s1݌ |   XX  Theverydayjudgmentwasentered,Mr.BootyrequestedthatLGBX+XXXs=XsXXX+sofficemanager H providehimwithtwoblankchecks.Mr.BootytoldLGBX+XXXs=XsXXX+sofficemanagerthatheneededthe  h checkstowritea$14,000checktotrialcounselPeterMaignanforoutstandinglegalfees  8 incurredinhissuitagainstLGBandthatheintendedtowritea$14,000checktohimselfas    reimbursementforlegalfeespaidtoMr.Maignantodateinconnectionwithhissuitagainst   LGB.Mr.Bootyadmittedasfollowsundercrossexamination: L   X X X9%` ` hp x X9Q.DidyoualsorequestchecksfromMarieJohnsonthatday? h A.Yes,Idid.IrequesteditbecauseI'mthepresidentofthecompanyandI N requesteditanditwasdenied. 4 Q.Didyoutellheranythingaboutwhatthosecheckswerefor?  A.Yes.  Q.AndwhatdidyoutellMarieJohnson?  A.ItoldMarieJohnsonIwantedtogetthosebooksandrecordsandthose | checksforreimbursementformyattorney'sfeesandmyattorney'sfees. b Q.Andwhywasitnecessarytohavetwochecks? H A.BecauseitwasreimbursementforathirdofwhatIwonon. .~ :;Q.Andwhatarethecheckstobemadeoutfor? d A.MyreimbursementforJohnBootyandPeterMaignan. J Q.YouaskedforonecheckforyourselfandonecheckforMr.Maignan? 0 A.Yes.  Q.Thecheckforyourself.Howmuchdidyouwantittobe?Whatamount?  A.Ithinksit's$14,000.   Q.Fourteenthousanddollars.WhataboutMr.Maignan? x!  A.It'sroughly$14,000. ^"!  X X?+ ` hp x (#` ` X?SeeTrialTranscript,VolumeII(pages2021): *$z#  X<( X` p x (#X<MarieJohnson,LGBX+XXXs=XsXXX+sOfficeManagerdescribedtheinteractionthisway: %F!%  X X X<"` X` p x XXX<Q Youwereworkingonthe17th.CouldyoutelltheCourtwhat,if '#'  anything,occurredthatday? (#(  :; : ;:XX ;  A OnDecember17th,thatwasthedaythatJohnactuallycameintothe   gymandaskedmetocuttwochecks,oneforhimselfandoneforMr.  Maignan.Healsohadacourtdocumentstatingthathehadbeenreinstatedas | president.Atthattime,IexpressedtoJohn,justbecauseofeverythingthat b wasgoingon,thatIwouldliketocalloneoftheexecutivecommittee,Nadine H orsomeoneelse,justtomakesurethateverythingwasokaybecause,you . ~ know,wehadbeengoingthroughalotoflegalthings.Andatthattimehe  d hadtoldmeno,no,don'tworryaboutit,I'lltakecareofit.  J Q Okay.Now,doyouremembertheamountsthatheaskedyoutocut  0 thechecksfor?    A Yes.Itwassomewherearound14,000forJohnand14,000forPeter.    THECOURT:I'msorry,14,000forJohnandwhat?   THEWITNESS:Thereweretwochecksherequested. x  THECOURT:Right. ^  THEWITNESS:14,000forhimself,and14,000healsosaidforPeterfor D  legalfees. *z  THECOURT:Okay.Peterbeingwho? ` BYMR.PAYLOR: F Q Mr.Maignan? , A Mr.Maignan,I'msorry.   X XH( X` p x (#` X` XHE+ ` hp x (#XXXESeeTrialTranscript,VolumeIII(pages121122).   X<=LGBX+XXXs=XsXXX+sofficemanagerrefusedtogiveMr.Bootythechecksherequested.Thiswas Z properasthisCourthasalreadydeterminedthatMr.Bootywasnotentitledtothesefunds. *z SeeCourtOrderofJanuary21,2003.Moreover,LGBX+XXXs=XsXXX+sExecutiveCommitteehadnot F authorizedthepaymentandMr.Bootyknewthispriortodirectingthebanktopayhimthese  funds.ReferringtoExecutiveCommittee,Mr.Bootytestifiedasfollows:    X X X9%` ` hp x X9Q.Youalsoknewtheydidn'twantyoutohavethemoney? ^"! MR.MAIGNAN:Objection,YourHonor,askedansweredseveraltimes. D#" BYMR.HANSEL: *$z# Q.Correct? %` $ A.Correct. %F!%  X X?+ ` hp x (#` ` X?SeeTrialTranscript,VolumeII(pages223). '#'   (#(  <= < =<XX =  XOnJanuary2,2003,twoLGBownerswentwiththeofficemanagertoColumbia   BankwheretheylearnedthatMr.Bootyhadwithdrawn$28,636.65viacashierX+XXXs=XsXXX+scheck,that | Mr.Bootyhadaddedhimselfasasignatoryontheaccountandthatotherownerswere L removedfromtheaccount.Inthisregard,NadineVarella,amemberofLGBX+XXXs=XsXXX+sExecutive  h Committeetestifiedasfollows:  8  X X X6"` X` p x X6Q Now,IwanttoreferyoubacktoDecember17th,2002,thedateMr.    Bootywasreinstated.Toyourknowledge,didMr.Bootydoanythingto   obtainfundsfromLGB?   MR.MAIGNAN:Objection,YourHonor.Leading. f  THECOURT:Overruled. L  BYMR.HANSEL: 2  Q Onthatdate? h A Yes. N Q Andwasheauthorizedtodoso? 4 A No.   X XH( X` p x (#` X` XHE+ ` hp x (#XXXESeeTrialTranscript,VolumeIII(pages6162).   XInaddition,MarieJohnson,LGBX+XXXs=XsXXX+sOfficeManagertestifiedasfollows: b  X X X6"` X` p x X6Q Didyouhavetheopportunitytoreviewdocumentsatthattime? 0 A Yes. f Q Andwhatdidyoulearnwhilereviewingthedocuments? L A ThatGregYoungandNadinehadbeenremoved,andthat28,000was 2 takenfromtheaccount.   X XH( X` p x (#` X` XHSeeTrialtranscript,VolumeIII(pages123).    XE+ ` hp x (#XXXE z!  >?Mr.Bootywasabletoaccomplishtheforgoingresultbyprovidingthebankwitha F#" fraudulentdocumentpurportingtobeaX+XXXsAXsXXX+ResolutionofLGBGroupLLC.X+XXXs@XsXXX+ԀMr.Booty %b $ admittedthatthebankrequiredaresolutionbeforeitwouldprovideLGBfundstohim: &2"&  X X X9%` ` hp x X9Q.Didthebanktellyouthattheyneededtheresolutionbeforetheywould (#( makeanychanges? )$)  >? > ?>XX ?  A.Yes,theydid.   X X?+ ` hp x (#` ` X?SeeTrialTranscript,VolumeII(page24).Withrespecttotheresolution,Mr.Bootyfurther | admittedhavingitcreatedandgivingittothebankpursuanttotheirrequest: H  X X6"` X` p x X6Q WhatisPlaintiff'sExhibitNo.7?  d A It'saresolutionofLGBGroup,LLC.  J Q Andwhopreparedthatresolution?  0 A Ihaditprepared,sir.      ***      Q Whomdidyoupassitoutto?   A Igaveitto,again,ouraccountant,ChuckDavis,Intranuity.Ihadit x  passedtoIntranuity,WorldGymInternational.IgaveittothePrince ^  George'sFinancialServiceCorporation,Ibelieve.Igaveittothebank.What D  wasthenameofthebank? *z  Q ColumbiaBank? ` A ColumbiaBank.IgaveittoIntranuity.Imean,allthepeoplethatI F neededtoreestablishmyself. ,  X XH( X` p x (#` X` XHE+ ` hp x (#XXXESeeTrialTranscript,VolumeI(page121).   XWhentheybecameawareofMr.BootyX+XXXs=XsXXX+sattemptstoobtainfunds,membersofthe t ExecutiveCommitteewenttothebanktoascertainwhetherhehadobtainedaccesstoLGB D funds.Withrespecttothisvisit,Ms.Varellatestifiedasfollows: `  X X X6"` X` p x X6BYMR.HANSEL: , Q Attheendof2002orthebeginningof2003,didyouhaveoccasionto  gotoColumbiaBank?  A Yes.   Q AndwhydidyougotoColumbiaBank? t!    *** Z"!   THEDEFENDANT:WewenttoColumbiaBankbecauseMr.Bootyhad @#" madeattemptstogetmoneyfromouraccounts,andwewenttocheckour &$v# accounts.  %\ $   *** %B!% @A  Q AnddoyourecallthedatewhenyouwenttoColumbiaBank? '#'  A Itwasrightafterthe1stoftheyear.ItwasaroundJanuarythe2nd. (#(  @ A  @ A@XX A  Q DidyouevermakeadeterminationastowhetherornotMr.Bootyhad   hadaccesstothecorporateaccounts?  A Idon'tunderstandthequestion.DidImakea | Q DidyoumakeadeterminationastowhetherMr.Bootyhadhadaccess b toLGB'sbankaccounts? H A HedidnothaveaccesstoLGB'sbankaccounts. . ~ Q Priortobeingreinstated?  d A Priortobeingreinstated,hedidnot.  J Q Okay.Andthereafter,didyoudeterminethathehadgottenaccess?  0 A Right.      ***      Q Duringyourvisitatthebank,didyoureviewanydocuments?   A Yes. x  Q Andwhatdocumentsdidyoureview? ^  A Thebankstatements. D    *** *z    Q Ma'am,IshowyouwhathasalreadybeenadmittedasDefendant's ` ExhibitNo.3.Canyouidentifythatdocument? F A ThisistheColumbiaBankstatement. , Q Isthatoneofthedocumentsthatyoureviewedatthebank?  A Yes.    ***    Q Letmeaskitthisway.LookingatExhibitNo.3,isthereadebitinthe t amountof$28,636.65? Z A Yes. @ Q Youareamemberoftheexecutivecommittee,aren'tyou? &v A Yes.  \ Q Wasthatdebitauthorizedbytheexecutivecommittee? B A No. (   ***    Q Well,letmeaskyouthis.Didthebankshowyouanydocuments?  A Yes.   Q Okay.Anddidtheyshowyouthisbankstatement,forinstance? p!  A Yes. V"! Q Andwhatotherdocumentsdidtheyshowyou? <#" A TheyshowedusaresolutionthatMr.Bootybroughtthem. "$r# Q Okay.Anddidyouhaveanopportunitytolookatthesignaturecard %X $ atthebank? %>!% A Yes. &$"& Q Andwhatdidyouobservewhenyousawthesignaturecard? ' #' A Thatmyname,Greg'sname,Marie'snamehadbeenremoved,and (#( John'snameputon. )$)   ***  BC  Q Thethreeofyouhadpreviouslybeensignatories? | A Yes. b Q Andyouhadbeenremoved? H A Yes. . ~ Q AndyousaidMr.Booty'snamehadbeenaddedasasignatory?  d A That'scorrect.  J Q Andyoumentionedaresolutionthatthebankshowedyou.Wasthata  0 resolutionthathadbeenpreparedbyLGB?    A No.    Q LetmeshowyouwhatisalreadyinevidenceasPlaintiff'sExhibitNo.   7andaskifyoucanidentifythatdocument. x  A AresolutionofLGBGroup,LLCiswhatitsaysatthetop. ^  Q Andwasthatresolutioneversubmittedthroughtheinvoicingprocess? D  A No. *z  Q Andyoutestifiedearlierthatyouareontheexecutivecommittee, ` correct? F A That'scorrect. , Q Wasthatexpenditureeverapprovedbytheexecutivecommittee?  A No.   X XH( X` p x (#` X` XHSeeTrialTranscript,VolumeIII(pages6268). t  XE+ ` hp x (#XXXETheX+XXXsAXsXXX+ResolutionX+XXXs@XsXXX+ԀMr.Bootyprovidedtothebankstatesthat:1)ameetingwascalled @ onDecember20,2002;2)Mr.BootyistobeasignatoryonX+XXXsAXsXXX+allaccounts;X+XXXs@XsXXX+Ԁ3)allother ` signatoriesaretoberemoved;and4)X+XXXsAXsXXX+allfurthercommunicationregardingsaidaccounts 0 shallbedirectlymadetoPresidentJohnBooty.X+XXXs@XsXXX+ԀThedocumentfurtherprovidesthatthe  forgoingitemsX+XXXsAXsXXX+areallapprovedandadoptedX+XXXsYXsXXX+bytheCompany.X+XXXs@XsXXX+ԀThisdocumentwassigned !  onlybyJohnBooty. P#"  XDEр ` DespiteMr.BootyX+XXXs=XsXXX+srepresentationinthepurportedX+XXXsAXsXXX+ResolutionX+XXXs@XsXXX+Ԁthathesigned,there %l $ wasnomeetingofLGBonDecember20,2002.Thereare18membersofLGBGroup,LLC &<"& andatleast16ofthosemembersreceivednonoticewhatsoeverofanyproposedmeeting; ($( #B C D E # B CBXX DC EDXX E  norwerethese16memberspresent.Aspropernoticewasnotgiven,andaquorumwasnot  reached,therewasnotameetingandtheactionspurportedlytakenbyMr.Bootyarenulland | void.Worsestill,Mr.BootyX+XXXs=XsXXX+srepresentationtothebankthattherewassuchameetingis H fraudulent.Ms.Varella,amemberofLGBX+XXXs=XsXXX+sExecutiveCommitteetestifiedasfollows:  h  X X6"` X` p x X6BYMR.HANSEL:  8 Q Wasthatresolutioneverapprovedbytheexecutivecommittee?    A No.    Q Areyoueverawareofanyauthorizationforthatresolutionotherthan   fromMr.Bootyhimself?   MR.MAIGNAN:Objection,YourHonor. f  THECOURT:Overruled. L  THEDEFENDANT:No. 2    *** h   BYMR.HANSEL: N Q Doyouseethattheresolutionreferstoameeting? 4 A Yes.Itsaysit.  Q AnditsaysthatameetingwithLGBtookplacetopassthatresolution.  A That'swhatitsays.  Q Didthatmeetingevertakeplace? | A NotthatIIdidn'tgotoanymeeting. b Q Didyoueverreceivenoticeofameeting? H A No. .~ Q ToyourknowledgedidanyothermemberofLGBreceivenoticeof d themeeting? J A Nottomyknowledge. 0 Q WasMr.BootyauthorizedinanywaybyanyoneatLGBtoyour  knowledgetomakethisrepresentationtothebankinthatresolution?  E%` ` hp x ` X` XEA No.    X X?+ ` hp x (#` ` X?SeeTrialTranscript,VolumeIII(pages6970). ^"!  XAsthisCourthasalreadyfound,X+XXXsAXsXXX+Bootyremovedfundsinanunauthorized *$z# mannerX+XXXsYXsXXX+afterhisreinstatementasPresident,X+XXXs@XsXXX+ԀandtheX+XXXsAXsXXX+methodbywhichBootyacquired %J!%  accesstotheBankAccountsinquestionX+XXXs@XsXXX+ԀwasX+XXXsAXsXXX+highlyunorthodox,ifnotillegal.X+XXXs@XsXXX+ԀSeeCourt '#' OrderofJanuary21,2003.Mr.Bootyadmittedtakingatotalof$28,318.33fromLGB  accounts: |  X X X9%` ` hp x X9Q.Mr.Booty,ultimatelythebankdoesmakeachecktoyourselffor H $14,000;correct? . ~ A.Correct.  d Q.AndyouultimatelydirectedthebanktowriteacheckonLGB'saccount  J sotospeakfor$14,318.33?  0 FGA.Correct.     X X?+ ` hp x (#` ` X?SeeTrialtranscript,VolumeII(page31);seealsoAffidavitofJohnBootyinoppositionto   LGBGroup,LLCX+XXXs=XsXXX+sRequestforInjunctiveRelief(filedinCAE0300088,whereinMr.Booty ^  affirmsunderoaththathewasallegedlyX+XXXsAXsXXX+entitledtoareimbursementofmyattorneysX+XXXs=XsXXX+ԀFees .~  [and][a]ccordingly,IdirectedthatpaymentsbedraftedfromLGBX+XXXs=XsXXX+saccountforthis N purpose.X+XXXs@XsXXX+).   XFacedwithMr.BootyX+XXXs=XsXXX+scontinuingpatternofmisbehavior,LGBdidawaywiththe  officeofthepresidency,thistimewiththeadviceofcounselandinperfectkeepingwithits n OperatingAgreementandapplicablelaw.Seeanalysis,infra.Inaddition,givenMr.BootyX+XXXs=XsXXX+s : continuingmisconduct,LGBexerciseditsoptiontoforfeithisinterestinLGBasaresultof  Z theunpaidjudgement.Seeanalysis,infra. & LGBalsoobtainedaWritofGarnishmentinconnectionwithMr.BootyX+XXXs=XsXXX+sinterestin   thecompanyandhasmovedforjudgementinconnectiontherewith.Anyoppositionto r"! LGBX+XXXs=XsXXX+sAugust15,2003MotionforJudgementinconnectionwiththegarnishmentwasdue >$# onSeptember2,2003,overfourmonthsago.Nooppositionwasfiled,and,therefore,the &^!% garnishmentisunopposedandwillbegranted. '*#'  F G  F GFXX G  Finally,lesttherebeanydoubtastowhetherMr.BootyisstillamemberofLGB,his  ownactionsinseekingtopartitionthecompanystatutorilyextinguishhismembershipinthe | LLCunderMarylandX+XXXs=XsXXX+sLimitedLiabilityCompanyAct. H   h   4     |   XHIIII. ` ConclusionsofLaw H   X     &    A. ThepositionofX+XXXsAXsXXX+PresidentX+XXXs@XsXXX+ԀofLGBwaseliminatedj  4Ԍ d Ќ X  X X<(` ` hp x (#X<B   ԍA.ThepositionofAPresident@ofLGBwaseliminated  'C  properlypursuanttoLGBX+XXXs=XsXXX+soperatingagreement.'L L  4  X?+ ` hp x (#` ` X?InlightofthefactthatMr.Bootywasattemptingtoconvertcompanyassetsasearly  asthedayjudgementwasenteredagainsthimforover$99,000,LGBamendeditsOperating  Agreement.TheoriginalOperatingAgreementprovidesthattheagreementX+XXXsAXsXXX+maybealtered b [or]amendedX+XXXsYXsXXX+byavoteofseventyfivepercent(75%)oftheMembersatsuchtimeX+XXXsYXsXXX+bythe 2 Membersactingbywrittenconsentinlieuofameeting.X+XXXs@XsXXX+ԀSeeOperatingAgreement,page R 10.Inlieuofameeting,16ofthemembersactedthroughwrittenconsentonDecember19, " 2002toadopttheamendmentstotheoperatingagreement.These16membersconstitute   88.89%ofthetotalmembershipof18.Infact,everymemberexceptMr.Bootyandhiswife j"! consentedtotheamendmentsinwriting.Thus,theseamendmentswerevalidlyadoptedas 6$# thethenexistingOperatingAgreementprovidedforamendmentthroughwrittenconsentof &R!%  75%ofthemembers. '#'  HI H IHXX I  ! (#X!  B+ ` hp x (#(#B  ݀TheamendmentsofDecember19,2002reflectanumberofchangesintheOperating   Agreement.Amongthesechanges,LGBdidawaywiththeofficeofX+XXXsAXsXXX+president,X+XXXs@XsXXX+Ԁproviding | forthesefunctionstobeperformedbytheExecutiveCommittee.  J 3  3     eda  Thus,asofDecember19, L 2002,thereisnoX+XXXsAXsXXX+presidentX+XXXs@XsXXX+ԀofLGBandMr.Bootynolongerholdsthisofficedespitethe  h factthathehadbeenreinstatedpriortothatdate(andpriortohisconversionofanadditional  8 $28,318.33)incompliancewiththisCourtX+XXXs=XsXXX+sorder.݌    Ќ XX     KL! (#X!    ݌̌! X(#!  ?+ ` hp x (#X?Mr.Bootyhasassertedduringhearingsinthismatterthatthereareallegedlycertain l inconsistenciesintheoperatingagreementandthathisconsenttothechangesinthe 8 agreementwasrequireddespitetheplainlanguageofpage10quotedabove.Inmakingthis  argument,Mr.Bootyreliesonparagraph6.6foundatpage7,whichprovidesasfollows:  ! (#X!  X X X<%` ` hp x (#<p  Anyactionrequiredorpermittedtobetakenatanymeetingofmembersmay L betakenwithoutameeting,ifallthemembersconsenttheretoinwriting,and 2 thewritingorwritingsarefiledwiththeminutesofproceedingsofthe h Members.p$݌ N Ќ X` ` X  ! (#X!  <%` ` hp x (#<  9݌̌ X` ` X  ! (#X!  X X XB+ ` hp x (#(#B  Theforegoingprovisionisbroadandgeneral.Itdoesnotrefertoanyspecific  circumstance.Ontheotherhand,Paragraph12.1providesspecificlanguagewithrespectto  howtheOperatingAgreementmaybeamended:C݌   Ќ XX  ! (#X!  X X X<%` ` hp x (#<  ThisAgreementmaybealtered,amendedorappealedX+XXXsYXsXXX+byavoteofseventy |!  fivepercent(75%)oftheMembersatsuchtimeX+XXXsYXsXXX+bytheMembersactingby d"! writtenconsentinlieuofameeting.[݌ L#" Ќ X` ` X  ! (#X!  <%` ` hp x (#<+  +݌̌ X` ` X  X X X?+ ` hp x (#X?AstheCourtofAppealshasheld,X+XXXsAXsXXX+[w]heretwoclausesorpartsofawritten %h $ agreementareapparentlyinconflict,andoneisgeneralincharacterandtheotherisspecific, &P!%  KL K LKXX L  thespecificstipulationwilltakeprecedenceoverthegeneral,andcontrolit.X+XXXs@XsXXX+ԀFederalIns.  Co.v.AllstateIns.Co.,275Md.460,472(1975).Thus,thespecificlanguageinParagraph  12.1regardinghowtoamendtheOperatingAgreementwillcontrolanditisapplicabletothe ~ presentsituationwithoutregardtothegenerallanguageinParagraph6.6.Seeid.;seealso d Youngv.AnneArundelCo.,146Md.App.526;807A.2d651(2002)(applyingthesame J principletostatutoryconstruction)(X+XXXsAXsXXX+Whentwoprovisions,onegeneralandtheotherspecific, 0  appeartocoverthesamesubjectbutseemtoconflict,thespecificprovisioniscontrolling  h andprevailsoverthegeneralenactment.X+XXXs@XsXXX+).  N InadditiontobeingtheonlyinterpretationwhichappearsreasonableunderFederal  6 Ins.Co.v.AllstateIns.Co.,275Md.460,472(1975),thisinterpretationofthecontract    makessensegiventheoverallstructureofthedocument.Thedocumentrequirestheconsent    ofamajorityoftheownershipinterestformostactions.Paragraph12.1isoneofthefew   exceptionstothisrule.Paragraph12.1merelyrequiresthemajorityofthemembers(i.e.,the ~  individuals)whetheractinginpersonorviawrittenconsent.Thisprovidesacheckagainst d  theexacttypeofsituationinwhichthemembersfoundthemselveshere.Inotherwords, J  shouldanownerandofficerwitharelativelylargepercentageoftheLLCactunlawfully,for 0  instancebyembezzlingmoneyfromthecompanyasthejuryfoundMr.Bootyhaddone, f thenthemembershadrecourse.Paragraph12.1isanenforcementmechanismtoprovidethe L memberswiththepowertodoexactlywhattheydidhere:preventfurthertheftandfraudby 2 amendingtheoperatingagreementwithamajorityvoteofthemembers.  ! (#X!  B+ ` hp x (#(#BL  B. Mr.BootyX+XXXs=XsXXX+sinterestinLGBwasforfeitedunderL݌  Ќ XX  ! (#X!  X?(` ` hp x (#(#?  Section4A502(c)oftheMarylandLimitedLiabilityAct.G݌  Ќ X` ` X  ! (#X!  XB+ ` hp x (#(#B  ݌ | Ќ XX  ! (#X!  X?( ` hp x (#?  NotonlyisMr.BootynolongerthepresidentofLGB,henolongerhasan b interestinthecompany.LGBisauthorizedtodivestMr.Bootyofhisinterestin H LGBasaremedyforMr.BootyX+XXXs=XsXXX+sfailuretopaythejudgmentagainsthimunder .~ Section4A502(c)oftheMarylandLimitedLiabilityAct,whichprovidesthat:݌ f Ќ XX   L MN Rӹ ,X        9% ` hp x X9/݌ j Ќ  hR X,   R ,X    hR , X6"` hp x ` X6  ݌̌   X   R ,X    R ,  9%` ` hp x `  X9#  [A]memberwhofailstomakeanyX+XXXsYXsXXX+paymentthatthememberisrequiredto 8! makeshallbesubjecttospecifiedremediesfor,orspecifiedconsequencesof,  "p  thefailureX+XXXsYXsXXX+.TheremedyorconsequencemaytaketheformofX+XXXsYXsXXX+.[f]orfeitureof #V! thedefaultingmember'sinterestinthelimitedliabilitycompanyX+XXXsYXsXXX+.;orX+XXXsYXsXXX+[a]ny #>" otherremedyorconsequences.#݌ $& # Ќ   X   R ,X    RR  4  4݌ % !$ Ќ  hR X,   R ,X    hR ,)  )݌    X   R ,X    R ,    ݌ '*#&  MN M NMXX N  ь   X    XX  X X   Mr.BootyowedLGBajudgmentintheamountof$99,789.96andtherehasbeena   clearfailuretomakethisrequiredpaymenttoLGB.Moreover,thejuryfoundintheprior | litigationthatMr.Bootyreceivedinappropriaterefundsofthecapitalcontributionshewas H requiredtomake.Asaresult,LGBhasadoptedaresolutionreducingJohnBootyX+XXXs=XsXXX+sinterest  d inLGBtozeroandforfeitinghisinterestinLGB. ݌  4 Ќ XX    XX     Beforeadoptingtheresolutionatissue,LGBhadMr.BootyX+XXXs=XsXXX+sinterestinLGBvalued   bytheindependentaccountingfirmofSaggar,Lippman&Rosenberg,P.C.LGBtookthis   stepdespitethefactthatavaluationisnotrequiredbythestatuteatissue;nordoesthe L  statuterequireacorrelationbetweenthevalueoftheinterestforfeitedandtheamountdue h thelimitedliabilitycompany.SeeSection4A502,supra. ݌ 4 Ќ XX    XX     TheaccountingfirmofSaggar,Lippman&Rosenberg,P.C.valuedMr.BootyX+XXXs=XsXXX+s  interestinLGBat$87,000applyingthreedifferentvaluationtechniquesandusing,notthe  highestnumber,butanaverage.SeeExpertX+XXXs=XsXXX+sReport(inevidence).  O 3  4     ~   Thejudgementagainst L Mr.Bootywas$99,789.90.NowthatMr.BootyX+XXXs=XsXXX+sinterestinLGBhasbeenforfeited,LGB l shalltreat$87,000ofthejudgmentashavingbeencollectedinaccordancewiththevaluation < providedbySaggar,Lippman&Rosenberg,P.C.Thus,only$12,789.90oftheprior   judgmentagainstMr.Bootyremains. ݌ !  Ќ XX    XX   K    PQOtherthanhisownsubjective,selfserving,nonscientific  R 3  5     *   suppositionthatLGBisworth |  $1.7million,Mr.Bootyprovidednoalternativeexpertvaluationtothe30pagereport b applyingthreedifferentvaluationtechniqueswhichformedthebasisoftherequestfor H garnishment.Moreover,theCourtfindsMr.BootyX+XXXs=XsXXX+stestimonyinherentlylackinginveracity . ~ andcredibilityforreasonsdetailedherein. K݌  f Ќ XX  Mr.Bootydidtestify,overobjection,thatMartinMayhewhadonceofferedtosell  L his14%interestinLGBbacktotherestofthegroupfor$192,000.However,thisisnota  2 measureofthetruevalueof14%oftheLLCgiventhattheofferwasturneddownbyLGB    becauseMr.Mayhewwasaskingfortoomuchmoneyforhis14%:     X X X6"` X` p x ` ` X6Q Okay.Now,youheardtestimonythatMartinMayhewofferedtosell   hisinterestinLGBtothegroup.Doyourecallthattestimonyearlier? z  A Right.Yes. `  Q AnddidthegroupacceptthatofferfromMr.Mayhew? F  A No. ,|    *** b   Q Whatisyourunderstandingofwhythegrouprejectedthatoffer? H A Itwastoomuch. .  X XH( X` p x (#` X` XHE+ ` hp x (#XXXESeeTrialTranscript,VolumeIII(testimonyofNadineVarella,page75).Thus,thealleged  unconsummatedofferisnomeasureofthefairmarketvalueofanyportionofLGB. v  XAsLGBX+XXXs=XsXXX+saccountingexperttestified,anunconsummatedoffertosellaninterestin B LGBdoesnotreflectfairmarketvalue.SeetestimonyofSandeepSagar.asfairmarket b valueis,bydefinition,whatawillingbuyerwouldpayawillingseller.Seeid.Mr. . MayhewX+XXXs=XsXXX+sofferwasrejectedforwantofawillingbuyerand,thus,itisnomeasureoffair  marketvalue.  z!  STEventhoughSection4A502(c)oftheMarylandLimitedLiabilityActdoesnot F#" requiresuchavaluation,theevidencesupportsafindingthatMr.BootyX+XXXs=XsXXX+s25%interestin %b $ #PQST# P QPXX SQ TSXX T  LGBisworth$87,000andtheCourtsofinds.Thus,LGBhascausedMr.BootyX+XXXs=XsXXX+sinterestto  belawfullyforfeitedasaresultoftheunpaidjudgmentfromthepriorlitigationandMr.  BootyhasnointerestinLGBdespitehisunsupportedsuppositionthathis25%isworthmore L than$87,000.Ofcourse,becausenovaluationorcorrelationbetweentheinterestforfeited  h andthejudgementdueisrequiredinthefirstinstance,eveniftheCourtweretofindthatMr.  4 BootyX+XXXs=XsXXX+sinterestisworthmore,LGBX+XXXs=XsXXX+sactionswouldstillbeaffirmed.Thisisparticularly   truegiventheoperationofthebusinessjudgementrule(discussedinfra.)andthefactthatthe   outstandingjudgementagainstMr.Bootyisformorethan$99,000(beforeaddingthe L  additional$28,318.33soughthere). h  X XC. GivenMr.BootyX+XXXs=XsXXX+stheft,theMembersofLGBhada   Xcommonlawrighttoremovehimasamemberand  officerirrespectiveoftheOperatingAgreement.    XX+XXXsAXsXXX+Thelawissettledthatacorporationpossessthepowertoremoveamember,officer, d ordirectorforcause,regardlessoftheexistenceofaprovisioninthecharterorbylaws 4 providingforsuchremoval.X+XXXs@XsXXX+ԀChisholmv.HyattstownVol.FirDepX+XXXs=XsXXX+t,115Md.App.58,691 P A.2d776(1997)(quoting18AAm.Jur.2dCorporationsX+XXXs''XsXXX+Ԁ93537)).Theforegoingpower   ismostimportantincircumstancessuchasthosepresentedbythiscase.Here,ajuryandthis   CourthavefoundthatMr.BootyhasabusedhispriorpositionwiththeLLCtoabscondwith l"! fundsbelongingtotheLLCwithoutproperauthority.Moreover,thisCourthasfoundthat 8$# X+XXXsAXsXXX+absentCourtintervention,theDefendant,JohnBooty(X+XXXsAXsXXX+BootyX+XXXs@XsXXX+),maycontinuetospend, &T!% pledgeorotherwiseencumbertheassetsofLGBGroup,LLC(X+XXXsAXsXXX+LGBX+XXXs@XsXXX+)withoutappropriate '$#' authorityorapprovalX+XXXsY@XsXXX+ԀSeeCourtorderofJanuary21,2003.TheLLCfounditselfinadire  situationandactedwithinitscommonlawpowerstodefenditselffromfurthertheft.  D. Mr.BootyX+XXXs=XsXXX+sinterestinLGBshallbeforfeited L  Xasaresultofpendinggarnishmentproceedings. 4   X X<(` ` hp x (#X<  j UV X?+ ` hp x (#` ` X?Asdemonstratedabove,LGBhasajudgementagainstMr.Bootywhichexceedsthe  P valueofhisinterestinLGB.Thejudgementisfor$99,789.96andMr.BootyX+XXXs=XsXXX+sinterestin    LGBhasbeenvaluedbyanindependentappraiserat$87,000.Seediscussion,supra.   Asaresultoftheoutstandingandunpaidjudgement,LGBfiledarequestfor h  garnishmentofMr.BootyX+XXXs=XsXXX+sinterestinLGBpursuanttoMarylandRule2645.  W 3  6     X  Thisrequest 4  wasfiledonJuly3,2003andtheresultinggarnishmentwaspersonallyservedonMr.Booty, T asrequiredbytherules,onJuly26,2003.   OnAugust15,2003,LGBmovedforjudgementinconnectionwiththegarnishment  pursuanttoMarylandRule2645(g),mailingacopyofthemotiontocounselforMr.Booty h onthesamedate.AnyresponsetothemotionforjudgementbyMr.Bootywasdueonor 4 beforeSeptember2,2003.Morethanfourmonthsafterthisdeadlinepassed,noresponse P hasbeenfiled;noristhereanydefense.Asaresult,thependingMotionforJudgementin  connectionwiththegarnishmentshouldbegrantedwithoutevenreachingthemeritsbecause   theissueisuncontested. d"! Moreover,LGBpresented,attrial,experttestimonyregardingthevalueofMr. 0$# BootyX+XXXs=XsXXX+s25%interestinLGB.ThistestimonyestablishedthatthefairmarketvalueofMr. %L!%  UV U VUXX V  BootyX+XXXs=XsXXX+s25%interestinLGBis$87,000.Thus,onthemerits,LGBisentitledtojudgement  onthisissue.  XYEvenifthereweresomemerittoMr.BootyX+XXXs=XsXXX+ssuggestionthathisinterestwas L undervalued(itwasnot),thenhewouldstillnotbeentitledtothereliefheseeks.First,the  l valuationdonereturnedavalueof$87,000,whichis$12,789.90lessthanthejudgement.  8 Asaresult,evenifthevaluationwereincreasedbyasmuchas$12,000,Mr.BootyX+XXXs=XsXXX+sentire    interestinLGBwouldstillbesubjecttoforfeitureinthegarnishmentand/ordeclaratory   judgementproceedings. P  Finally,evenifMr.Bootyhadproducedsomecredibleastronomicalvaluationofhis l interest,atleastwhateverportionofhisinterestwasequaltothevalueofthejudgement 8 wouldstillbesubjecttoforfeitureinthegarnishmentproceeding.AsthemembersofLGB  opposedtoMr.Bootycontrol50%ofthecompany,iftheywrestanysmallpercentagefrom  himwhatsoever,theyhavemajoritycontrol.Thus,theissueofvaluationis,inlargepart, L moot.Irrespectiveofthepropervaluation,$99,789.96worthofMr.BootyX+XXXs=XsXXX+sinterestinLGB h shouldbetransferredtoLGBtosatisfyhisdebt,thusgivingtheotherownersmajority 8 control.  E. Mr.Bootyforfeitedhismembershipin !   X<(` ` hp x (#X<LGBbyseekingtheX+XXXsAXsXXX+partitionX+XXXs@XsXXX+ԀofLGB. f"!  N#"  X?+ ` hp x (#` ` X?Section4A606oftheCorporationsandAssociationsArticleoftheMarylandCode 4$#  providesasfollows: &P!%  XY X YXXX Y  X X X9%` ` hp x X9Apersonceasestobeamemberofalimitedliabilitycompanyuponthe  occurrenceofanyofthefollowingevents...theperson...[f]iles  Z 3  7        apetitionor   answerseekingforthatpersonanyreorganization,arrangement, | 9%` ` hp x ` ` X9composition,readjustment,liquidation,dissolution,orsimilarreliefunderany b statute,law,orregulation. H  X[\ X X?+ ` hp x (#` ` X?Inthepresentcase,onFebruary11,2003,JohnBootyfiledaX+XXXsAXsXXX+Counterclaimfor  d Partition,X+XXXs@XsXXX+Ԁseeking,amongotherrelief,thatX+XXXsAXsXXX+LGBGroup,LLC...besoldandtheample  4 proceedsdividedamongthemembersaccordingtotheirrespectiveinterestand    shareholdings.X+XXXs@XsXXX+ԀSeeBootyX+XXXs=XsXXX+sCounterclaimforPartitionat3.Mr.Bootyalsorequestedthat   thisCourtordertheX+XXXsAXsXXX+saleofLGBGroup,LLCX+XXXs@XsXXX+ԀandappointX+XXXsAXsXXX+anadministratortomanagethe P  dailyfunctionofthebusinesspendingsaleand[sic]facilitatethesaleofthebusiness.X+XXXs@XsXXX+ԀSee  p BootyX+XXXs=XsXXX+sCounterclaimforPartitionat6.Inaddition,Mr.Bootytestifiedregardingthisclaim @ attrialasfollows:   X X X6"` X` p x X6Q Sir,inyourcomplaintfordeclaratoryjudgment,youaskedforthe  appointmentofanadministrator,correct? r A Correct. X Q WhydoyouaskthisCourttoappointanadministratortorunthe > company? $t A I'maskingthattohappenuntilthatweget,youknow,aclearcutview   ofhowmuchthecompanyisworth,andalmostlikeaneutralpartytorunthe   company. !   X XK+ ` hp x (#` X` XK<( X` p x (#X<SeeTrialTranscript,Volume1(page129) T#"  XE+ ` hp x (#XXXEObviously,inrequestingthesaleofthebusinessandtheappointmentofan  %p $ administrator,Mr.BootyhasfiledapetitionseekingX+XXXsAXsXXX+liquidation,dissolution,orsimilar &<"&  [\ [ \[XX \  relief.X+XXXs@XsXXX+ԀSeeMarylandCode,Corp.&Assoc.,X+XXXs'XsXXX+Ԁ4A606.Assuch,JohnBootyX+XXXsAXsXXX+cease[d]tobe  amemberof[this]limitedliabilitycompanyupontheX+XXXs@XsXXX+ԀfilingofhisCounterclaimfor  Partition.Seeid.Thus,Mr.BootyisnolongeramemberofLGB. P F. LGBX+XXXs=XsXXX+sactionsareduesignificantdeferenceunderthe  l  X<(` ` hp x (#X<businessjudgmentrule,whichrequiresashowingof  T X+XXXsAXsXXX+badfaithX+XXXs@XsXXX+Ԁbeforetheyshouldberescinded.  :   "   X?+ ` hp x (#` ` X?AfterMr.BootywasreinstatedasaresultofthisCourtX+XXXs=XsXXX+sorderofDecember17,    2002,LGBanditsmemberswerefreetoexercisetheirrightsundertheOperatingAgreement   togovernLGBfromthatpointforward.Indoingso,theymadethelegitimatedecisionto T  eliminatetheofficeofthepresidencyandtheirdecisionisprotectedbytheX+XXXsAXsXXX+business  p judgmentrule.X+XXXs@  XsXXX+] 3  8     !righ   @ ^_InMaryland,acorporatecontrolgroupispresumedtoactingoodfaith,Zimmerman  v.Bell,800F.2d386,392(4thCir.1986)(interpretingMarylandlaw),andthecourtwillnot  substituteitsbusinessjudgmentforthatofthemanagersofacompany.Devereuxv.Berger, X 264Md.20,32,284A.2d605(1972).ThisdoctrineisknowastheX+XXXsAXsXXX+businessjudgment $t rule.X+XXXs@XsXXX+ D TheappellateCourtsofMarylandhaveheldthat:   X X<(` ` hp x X<  X9%` ` hp x ` X9 %  The"businessjudgment"ruleX+XXXsYXsXXX+precludesjudicialreviewofalegitimate !  businessdecisionofanorganization,absentfraudorbadfaith. %%݌ x"!  X X X` ` X   ^#"  ^_ ^ _^XX _  Blackv.FoxHills,90Md.App.75,81,599A.2d1228,1231(1992)cert.denied,326Md.   177,604A.2d444(1992);seealsoNAACPv.Golding,342Md.663,679A.2d554 | (1996)(X+XXXsAXsXXX+Thebusinessjudgmentruleinsulatesbusinessdecisionsfromjudicialreviewabsent H ashowingthattheofficersactedfraudulentlyorinbadfaith.X+XXXs@XsXXX+).  h  XThoseauthorizedtoactonbehalfofacorporateentity:  8  X X Xenjoythebenefitandprotectionofthebusinessjudgmentrule,andtheir    controlofcorporateaffairsshouldnotbeimpingedbasedonnonspecificor   speculativeallegationsofwrongdoing.Norshouldthey,orthecorporation,be   putunnecessarilyatriskbyminorityshareholdersbentsimplyonmischief, f  whofilederivativeactionsnottocorrectabuseasmuchtocoercenuisance 2  settlements. h  X X?+ ` hp x (#X?SeeWerbowskyv.Collomb,362Md.581,618619,766A.2d123,144(2001);seealsoNCR 4 Corp.v.AT&TCo.,761F.Supp.475,491(1991)(applyingMarylandlaw).   XFinally,boththeCourtofSpecialAppealsandtheCourtofAppealshaveconsistently | heldthat: H  X X X9%` ` hp x X9IftheorganizationisincorporatedinMaryland,"thebusinessjudgmentrule d appliestodecisionsregardingthecorporation'smanagement."Thisrule J "insulatesbusinessdecisionsfromjudicialreviewabsentashowing"offraud 0 orbadfaith.Inthiscontext,"fraud"hasbeeninterpretedbroadly"toinclude  'actionunsupportedbyfactsorotherwisearbitrary.'"  `a X X?+ ` hp x (#` ` X?Chisholmv.HyattstownVol.FirDepX+XXXs=XsXXX+t,115Md.App.58,691A.2d776(1997)(citations x!  omitted)(quotingNAACPv.Golding,342Md.663,679A.2d554(1996);Martinv.United H#" SlateEtc.Ass'n,196Md.428,441,77A.2d136(1950)). %d $  XUnlessMr.BootycandemonstrateX+XXXsAXsXXX+fraudorbadfaith,X+XXXs@XsXXX+Ԁhisrequesttorescindthe &0"& amendmentstotheoperatingagreementshouldbedeniedunderthebusinessjudgmentrule. ($(  `a ` a`XX a  SeeBlackv.FoxHills,90Md.App.75,81,599A.2d1228,1231(1992)cert.denied,326  Md.177,604A.2d444(1992);NAACPv.Golding,342Md.663,679A.2d554(1996).Mr. | Bootyhasnotevenalleged,letalonedemonstrated,fraud.SeeBootyX+XXXs=XsXXX+sComplaint;trial H testimony.  h Moreover,therewasmorethansufficientcauseforLGBtotakethemeasuresittook  4 because,astheCourthasalreadyfound,X+XXXsAXsXXX+absentCourtintervention,theDefendant,John   Booty(X+XXXsAXsXXX+BootyX+XXXs@XsXXX+),maycontinuetospend,pledgeorotherwiseencumbertheassetsofLGB   Group,LLC(X+XXXsAXsXXX+LGBX+XXXs@XsXXX+)withoutappropriateauthorityorapprovalX+XXXsYXsXXX+.[and]Bootyremovedfunds P  inanunauthorizedmannerX+XXXsYXsXXX+afterhisreinstatementasPresidentX+XXXsYXsXXX+.X+XXXs@XsXXX+ԀSeeCourtorderof  p January21,2003(emphasisadded).Thus,Mr.Bootywillnotbeawardedanyreliefandthe @ CourtwillallowtheactionsoftheLLCtostand.   G. LGBwillbeawarded$27,318.33.  Mr.Bootyadmittedtakinganadditional$28,318.33fromLGBdespitethenearsix T figureverdictagainsthimandLGBfiledthepresentsuitinparttorecoverthesefunds.The  p soleauthorityassertedbyMr.Bootyforhisunauthorizedandunilateralposttrialwithdrawal < ofanadditional$28,318.33fromLGBaccountsisArticle10ofLGBX+XXXs=XsXXX+sOperating  Agreement.Inissuingapreliminaryinjunctionthatthefundsbereturnedatonce,theCourt !  correctlyfoundasfollows: T#"  Xbc X X9%` ` hp x X9ItisevidentthatabsentCourtintervention,theDefendant,JohnBooty  %p $ (X+XXXsAXsXXX+BootyX+XXXs@XsXXX+),maycontinuetospend,pledgeorotherwiseencumbertheassetsof &V!% LGBGroup,LLC(X+XXXsAXsXXX+LGBX+XXXs@XsXXX+),withoutappropriateauthorityorapproval.Itis &>"& equallyevidentthatBootyremovedfundsinanunauthorizedmannerbefore '&#' theJanuary6thhearingbutafterhisreinstatementasPresidentintheCAE02 ( $(  bc b cbXX c  00408proceedingonDecember17,2002.TheCourtorderedallfunds  removedbyBootytobeheldbyhimoranyotherentitypresentlyin  possessionofthesameonJanuary6,2003.BootyX+XXXs=XsXXX+ssoleargumentisthat | pursuanttoArticle10,Indemnification,heisentitledtomakeaunilateral d determinationastohisownindemnification.Settingasidethehighly J unorthodox,ifnotillegal,methodbywhichBootyacquiredaccesstothe 0  BankAccountsinquestion,theprovisionsofArticle10donotprovide  f authorityforhisactions.Article10inrelevantpartprovidesthatLGBmay  L indemnityanyMemberwhowasaPartyDefendantiftheactionisresolvedin  2 theMemberX+XXXs=XsXXX+sfavorandiftheMembersdeterminethattheindividualactedin    goodfaithandreasonablybelievedthatheactedinthebestinterestsofthe   company.ExpresslyexcludedisanactionbytheCompanyagainsta |  Member,aswasthecaseinCAE0200408.TheJuryX+XXXs=XsXXX+sVerdictinCAE02 b  00408,interalia,wastotheeffectthatBootybreachedaContractbenefiting J  LGBandfailedtoactwithcare,skillanddiligence,forthebenefitofLGB, 0  coupledwithhisknowingacceptanceofimproperbenefits.TheJuryVerdict f intheamountof$99,789.96wasagainsthimandinfavorofLGB.This L findingbeliesanythoughtthathisactionswereinthebestinterestsofLGB. 2 Settingasidetheproceduralmatter,thathefailedtosubmithisclaimtoLGB  andtothisdatehasfailedtosubmitanybillstosupporttheexpenditureof  $28,636.65inlegalfees,itisclearthattheCourtmustactforthebenefitof  LGBanditsotherconstituentmembers. z  X X?+ ` hp x (#` ` X?SeeCourtOrderofJanuary21,2003(followingafullhearingonthematter). F  XNofurtherexplanationisnecessary,butoutofanabundanceofcaution,thefollowing b isprovided: . de  XX   L  Article10provides,inrelevantpart,thatLGBX+XXXsAXsXXX+shallindemnifyanypersonwhowas  orisapartydefendantX+XXXsYXsXXX+inanyX+XXXsYXsXXX+actionX+XXXsYXsXXX+(otherthananactionbyorintherightofthe z!  Company)byreasonofthefactthathe/sheisorwasaMember,Manager,officer,employee J#" oragentoftheCompanyX+XXXsYXsXXX+againstexpenses(includingattorneyX+XXXs=XsXXX+sfees)X+XXXsYXsXXX+iftheMembers %f $ determinethathe/sheactedingoodfaithandinamannerhe/shereasonablybelievedtobe &6"& inornotopposedtothebestinterestsoftheCompany.X+XXXs@XsXXX+ԀSeeExhibit1(emphasisadded). LL݌ ($(  de d edXX e  ь XX    XX   [R  Mr.BootyisnotentitledtohisattorneyX+XXXs=XsXXX+sfeesbecausetheonlyactioninwhichhe  wasaX+XXXsAXsXXX+partydefendantX+XXXs@XsXXX+ԀwasbroughtX+XXXsAXsXXX+byorintherightoftheCompany,X+XXXs@XsXXX+Ԁthusprecluding  recoveryundertheplainlanguageoftheagreement.Conversely,theclaimsMr.Booty P broughtwereinhisownright,buthewasnotaX+XXXsAXsXXX+partydefendantX+XXXs@XsXXX+Ԁastotheseclaims. [RR݌  l Ќ XX    XX   WV  Moreover,undertheplainlanguageofArticle10,LGBwillonlyindemnifya  < Manageragainstexpenses,includingattorneyX+XXXs=XsXXX+sfees,providedthatX+XXXsAXsXXX+theMembersdetermine    thathe/sheactedingoodfaithandinamannerhe/shereasonablybelievedtobeinornot   opposedtothebestinterestsoftheCompany.X+XXXs@XsXXX+ԀNosuchdeterminationhasbeenmade;nor T  coulditbemadeingoodfaithgiventhefactsofthiscase.TherehasbeennoMembers $t meetingandnofindingthatMr.Bootyactedingoodfaithinhelpinghimselftotensof @ thousandsofdollarsofLGBX+XXXs=XsXXX+smoney.Thus,irrespectiveofanyotherissue,thisprerequisite   fortherepaymentofMr.BootyX+XXXs=XsXXX+sattorneyX+XXXs=XsXXX+sfeeshasnotbeenmetandMr.Bootyisnot  entitledtothe$28,318.33headmitstaking. WVV݌ \ Ќ XX    XX    \  Finally,thereisanoutstandingjudgmentagainstMr.BootyandinfavorofLGBfor (x almost$100,000.EvenifMr.BootywasproperlyduesomemoniesfromLGB(heisnot), D anysuchallegeddebtswouldconstitute,atbest,asetoffagainstthemoneyMr.Bootynow  owesLGB.UndernoconceivablecircumstancescouldLGBproperlyowetheJohnBooty !  $28,318.33hetook.  \F\݌ X#" Ќ XX    XX   ^  InresponsetotheCourtorderthatthefundsatissuebereturned,Mr.BootyX+XXXs=XsXXX+scounsel $%t $ returned$1,000ofthe$28,318.33taken.Assuch,$27,318.33isdueandowingtoLGBand &D"& judgementwillbeenteredaccordingly. ^^݌ ($( Ќ XX    XX   z`    fgH. ` Mr.BootyX+XXXs=XsXXX+sclaimfor$86,525.56shouldbedenied. z``݌ | Ќ XX  TheLGBOperatingAgreementpermitsreimbursementoflegitimatebusiness L expensesincurredbymembersonbehalfofthebusiness.Mr.Bootyclaimedreimbursement  h for$86,525.56worthofsuchexpenditures.AsLGBwitnessesexplained,thereisaclaims  4 processthroughwhichtheexpenditureissubmittedwithanappropriateformandattaching   thereceiptsatissuetoobtainreimbursement.NadineVarelladescribedthisprocessas |  follows: H   X X X6"` X` p x X6Q Now,IwanttoaskyouatLGBabouttheprocessforbeing d reimbursed.Isthereaninvoicingprocess? J A Yes,thereis. 0 Q Andwhatisthepurposeofthatprocess?  A Toreimbursethepersonforexpensesthattheymayhaveincurred.  Q Andcanyouexplainthatprocess,justwalkusthroughstepbystep? x A Whentheexpenseoccurs,thepersonistogotoourofficemanager, ^ whowehavewhat'scalledaninvoicingprocessingform.Andthatformisto D befilledoutandthensubmittedtotheofficemanager,whosignsit.The *z generalmanagerwhosignsit. ` Itthengetssubmittedtoouraccountingcompany,whothensignsitandbooks F itaccordinglysothatouraccountingrecordsarecorrect.Andthenthecheck , isthencutfromtheaccountingcompanybacktothegym.Andthenthegym  callstheperson,saysthecheckisready.    ***     Q Inadditiontotheform,isthereanythingelsethatisrequired? t!  A Receiptsarerequired. Z"! Q Andwhataboutlargeorunusualexpenditures?Dotheyhaveany @#" additionalprocess? &$v# A Right.Iftheyarelarge,thentheyhavetogototheexecutive  %\ $ committee. %B!%  X XK+ ` hp x (#` X` XKSeeTrialTranscript,VolumeIII(pages6061).LGBOfficeManagerMarieJohnson '#' confirmedtheprocedureasfollows: )$)  fg f gfXX g  X X6"` X` p x X6Q Now,couldyoubrieflydescribetotheCourttheinvoiceprocessing  system?  A Yes.Ourinvoiceprocessingsystemis,whatwedoiswehavean | invoiceprocessingform.Thatformisaformwhensomeoneactuallyhasan b expenseoranytypeofbillsthatgothroughtheclub.Theysubmitthebills. H hiThebillsareatfirstwhatIdoisIactuallyfilloutaninvoiceprocessing . ~ form.Andthenfromthere,thereisanapproval.Ifirstapprovethebill,make  d sureitisavalidbill.Thenitgoestothegeneralmanager,andthenhe'll  J actuallyapproveandvalidatethebill.Andthenfromthere,itgoestoour  0 accounting.    Q Whenyousaidbill,wouldthatbethesameasareceipt?    A Bill,receipts,anythingthatrequiresapayment.    X XH( X` p x (#` X` XHE+ ` hp x (#XXXESeeTrialTranscript,VolumeIII(pages120121). ^   XUndercrossexamination,Mr.Bootyvirtuallyadmittedthathehadnotfollowedthis *z  processwithrespecttoanyofhisclaim.First,withrespecttolargeexpenditureswhich F wouldhaverequiredExecutiveCommitteeapproval,Mr.Bootytestifiedasfollows:   X X X6"` X` p x X6Q Andwerethoseexpensesauthorized?Weretheypreauthorized  beforetheywerespent? t A Thoseexpenseswereauthorizedthroughme,thepresidentofthe @ company,togetthecompanyupandrunning. &v Q I'msorry.Weretheyauthorizedbytheexecutivecommittee?  \ A No. B  X X XH( X` p x (#` X` XH (  XSeeTrialTranscript,VolumeI(page114).Next,withrespecttootherexpendituresfor  whichheseeksreimbursement,Mr.Bootytestified:    X X?%` ` hp x XXX?Q.Didyousubmitthemaspartoftheinvoicingprocesstothecompany? V"! A.IbelieveIdid. <#" Q.Canyoutelluswhichonesweresubmitted? "$r# MR.MAIGNAN:Objection,YourHonor. %X $ THEWITNESS:Icannot. %>!% THECOURT:Overruled. &$"& THEWITNESS:Icannot. ' #'    *** (#(  hi h ihXX i    Q.Doyouhaveanydocumentationtoshowthesewerepreviouslysubmitted   otherthanyourclaiminthelawsuit?  A.Idon'thaveanywithme. |  X X<( X` p x (#` ` X<SeeTrialTranscript,VolumeII(pages701).Mr.Bootywentontoconfirmthathehadno H receiptsfortheseallegedexpenditures:  d  X X?%` ` hp x XXX?Inconnectionwithwhateveramountsyouarestillseekingdoyouhave  0 receiptsforthoseexpendituresheretoday?    jkA.Receipts?ItallcomesfromtheSalomon,SmithBarney.Receipts.I    don'thaveanythingwithmeheretoday,no.Idon'thaveanything.    X X?+ ` hp x (#` ` X?SeeTrialtranscript,VolumeII(pages6970). ^   X X9%` ` hp x X9 X X X?+ ` hp x (#` ` X?Thus,despitetheclaimthatheX+XXXsAXsXXX+believesX+XXXs@XsXXX+Ԁhesubmittedrequestsforreimbursements *z  forthefundssought,Mr.Bootycouldnotspecifywhichexpensesforwhichheallegesthat J hesubmittedforms.Moreover,Mr.Bootycouldoffernoreceipts,noreimbursementforms  andnootherdocumentationwhatsoevertosupportthisspeciousclaim.  WithrespecttohisclaimthatheX+XXXsAXsXXX+believesX+XXXs@XsXXX+Ԁhesubmittedreimbursementformsforthe ^ expensessought,itisimportanttonotethatMr.Bootygavetestimonyattrialwhichcan .~ charitablybedescribedasX+XXXsAXsXXX+inconsistent,X+XXXs@XsXXX+Ԁasitoftenevidencesawillingnesstochangehis J sworntestimonyafternotsosubtlecuesfromhiscounsel.Inadditiontothefactthatheis  suingLGBforfundstowhichhehasadmittedheisnotentitledandforwhichhewasalready   paid,thefollowingexamplesofMr.BootyX+XXXs=XsXXX+stestimonyareindicativeofhislackofveracity: b"!  X X X9%` ` hp x X9BYMR.MAIGNAN: 2$# Q.Mr.Booty,didyouhaveanopportunitytoreviewthedocumentsthat %h $ wereproducedtoyourcounselpursuanttothedocumentrequest? %N!% A.No. &4"&   *** '#'   BYMR.MAIGNAN:Q.Mr.Booty,didyouevercometomyofficeand ($( reviewthedocumentsproducedbyLGB? )$)  jk j kjXX k  A.Yes.  MR.HANSEL:Objection;askedandanswered.  THECOURT:Overruled. | BYMR.MAIGNAN: b Q.Now,Mr.Booty,listentomyquestion.Doyourecallcomingtoyour H counsel'sofficeandreviewingseveralboxesofdocumentstoLGB'sresponse . ~ todiscoveryrequests?  d A.Yes.  J  X X?+ ` hp x (#` ` X?SeeTrialTranscript,VolumeII(page8283).    <( X` p x (#X< X X?%` ` hp x XXX?Q.And,infact,yourattorney'sfeescameouttobesomethingcloserto   approximately$70,000;correct? x  A.Yes. ^  lm X X?+ ` hp x (#` ` X?SeeTrialTranscript,VolumeII(page89). *z   X X9%` ` hp x X9Q Sir,howmuchwasthelegalfeesattributedtothelawsuitwhereyou F suedLGBGroup? , A $120,000.   X X?+ ` hp x (#` ` X?SeeTrialTranscript,VolumeI(page143).   X X9%` ` hp x X9Q Didyouseekreimbursementforanyofyourattorneysfeesrelatedto Z thecaseofLGBversusyourself? @ A Yes.Correct.Yes. &v   ***  \   Q Okay.Let'sgothroughitagain. B THECOURT:No,I'vehearditalready.Youdon'tneedtogothroughit ( again.    ***    MR.MAIGNAN:Idon'tbelievethathetrulyunderstood.   THECOURT:Youmeanhesaidsomethingyoudidn'twanthimtosay?All <#" right.Mr.Booty,doyouwanttoclarifyanythingyou'vesaid? "$r# THEPLAINTIFF:Wecanclarifyit,yes. %X $ THECOURT:Okay.WhatdidyoutellmethatyouthinkImightbe %>!% confusedabout? &$"& THEPLAINTIFF:Onthesecondquestionheaskedme. ' #' THECOURT:Yes,whichwas? (#( THEPLAINTIFF:WasdidIseekreimbursementofLGBGroupagainstme. )$)  lm l mlXX m  THECOURT:Right.Andyouranswertothat?  THEPLAINTIFF:Isaidyes.  THECOURT:Okay.Youdid,didyounot? | THEPLAINTIFF:No.IwasgoingwhatIdidagainstLGBGroup. b THECOURT:Okay.Goaheadandclarify.Goahead. H BYMR.MAIGNAN: . ~ Q Okay.DidyouseekreimbursementfortheportionrelatedtoLGB's  d suitagainstyou?  J A No.  0  X X?+ ` hp x (#` ` X?SeeTrialtranscript,VolumeI(pages141143).     X X9%` ` hp x X9Q.Iwanttoaskyouaboutthemeetinginwhichyouallegeyougained x  authorizationtodothosethings.Whendidthatmeetingtakeplace? ^  A.Themeetingtookplaceonthe19th. D  Q.Thiswasthe19thofDecember? *z  A.Yes.