Reference no: EM133578944

Background for Assignment:

Attorneys Piazza and Gonzalez are holding a round-table meetings with their respective paralegal teams. The topic of the discussion is "Discovery", and why it is so important. The various forms of Discovery are posted on the monitor. They are:

Depositions
Interrogatories
Request for Production of Documents
Request for Admissions
Request for a Physical or Mental Examination
The Managing Attorneys have asked me and my colleagues in turn, to review each common form of Discovery (except for the Request for Physical or Mental Examination as it is not relevant to the BOC case). My Managing Attorney has asked me to identify which form of Discovery I believe will be most effective in uncovering facts for the benefit of my client and please explain why.

Instructions for the P&G Team:

What information do I will need to succeed in my claim against the Mulvaneys? Comment on additional information that I may think I need to defend Jones against the claims raised by the Mulvaneys in their counterclaim. It is also essential to gain the perspective of the other firm.

Background:

There are two law firms involved. The first law firm, Piazza & Grace ('P&G'), is a boutique firm specializing in plaintiffs' civil litigation located in Bethesda, Maryland. The second law firm, The Legal Defense Team ('TLDT') is a boutique law firm specializing in representing defendants in civil litigation matters. This firm is located in Rockville, MD.

Both firms handle cases arising out of contract claims, personal injury, and other private rights cases. In general, they do not handle criminal matters. The outcomes in their cases are typically some form of money damages, including actual damages, consequential damages, nominal damages, and under the right circumstances, punitive damages. In contract cases, their clients may seek restitution and/or recission of the contract. The cases typically allege some form of breach of contract, fraud in the inducement, or negligent misrepresentation. Initiating a new civil action on behalf of a client requires extensive preparation, research, and analysis. These tasks are often delegated to staff assistants.

The five categories of litigation principles that are present in most civil litigation cases. These legal principles are:

(1) determining proper jurisdiction and venue,

(2) case law and statutory law research and drafting of memorandums,

(3) drafting pleadings and motions,

4) drafting discovery documents, and

(5) settlement, trial preparation, and trial process.

As a legal assistant for the firm, I will be involved in professional training and development seminars and conferences for the firm. This is designed to provide an additional perspective of the litigation from the opposing side.

The primary assignments as a legal assistant will focus on a breach of contract case involving Tom and Maureen Mulvaney. The Mulvaneys own an independent "mom & pop" ice cream store, 'Sweet Licks & Bites' (SL&B) in Rockville Maryland. They sold the store to Leonard Jones in January 2021. That sales contract is now the focus of a dispute. The Mulvaneys have sought the legal services of TLDT, and Mr. Jones has sought the legal services of P&K. Both parties have retained their respective counsel to represent them in a potential breach of contract case arising out of the sale of the store. Assisting with this Breach of Contract case will require me to conduct interviews, properly investigate, research case and statutory law, and file appropriate pleadings based upon the party that I represent. In addition, I will be involved with discovery, settlement negotiations, and, if necessary, trial.

Facts and Background of the Breach of Contract (BOC) case:

The Mulvaneys purchased the SL&B Ice Cream store in May of 2014. They have operated the store successfully since that time. The store is located in a busy shopping center on Rockville Pike (Montgomery County, Maryland) which also houses a 10-screen movie theatre and a bowling alley. Tom Mulvaney also has a full-time job as a mail carrier. Maureen Mulvaney focuses her attention on the operation of Sweet Licks & Bites. The Mulvaneys originally purchased the store for $250,000 which included all of the furniture, fixtures, equipment, the name, & an assignment of the real estate lease. They obtained a loan of $200,000 at 3.5% amortized over 10 years with monthly payments of $1,978. As of November 2020, when they decided to put the store on the market for sale, they still owed $79,816 on the loan principle. In the six years since 2014, the Mulvaneys had seen a steady increase in their sales by increasing their hours of operations and adding additional offerings on their menu.

They advertised SL&B in local papers and engaged a business broker, Steven Singer to help them sell their business. They agreed to pay Mr. Singer 10% of the gross sales price for the successful sale of the business. All parties offered the business for sale at the price of $475,000.

In December 2020, Mr. Jones was looking for a business opportunity. He was referred to Mr. Singer. After reviewing several businesses with Mr. Singer, Jones indicated his interest in SL&B.

On December 15, 2020, Mr. Singer introduced Leonard Jones to the Mulvaneys. At the time Tom Mulvaney explained that because of the cash nature of the business, he maintained two ledgers for sales in the business. The first ledger included all of the sales of the business, including cash and credit card sales. This ledger was maintained so that the Mulvaneys could actually track their sales. The second ledger only contained credit card receipts and some minimal cash receipts. The Mulvaneys shared ledger two with their accountants and used in preparing their taxes. However, the Mulvaneys insisted that Leonard Jones use the first ledger as the basis for their offer on the business. The Mulvaneys wanted Jones to rely on Ledger 1 where all of the cash and credit card sales were represented to be recorded. Leonard reviewed all the available materials with Mr. Singer. He then prepared an offer to buy the business for $400,000. He would put a deposit down of $80,000, take over the existing loan, and the remainder of the purchase price would be held by the Mulvaneys as a note and purchase money chattel mortgage on the business in the amount of approximately $240,000 at 4% over 10 years. The Mulvaneys accepted the offer. As a part of the contract, the Mulvaneys agreed to work with the Jones for 6 weeks post-closing. Both parties were represented by counsel at the closing. Mr. Jones, only showed on the ledger with all of the receipts to the attorney representing him at closing. The sale was finalized at SL&B in Rockville, Maryland on February 1, 2021.

The store is located in Rockville Maryland which is in Montgomery County. Maryland, Leonard Jones lives in Annapolis Maryland which is in Anne Arundel County Maryland. The Mulvaneys live in Fairfax Virginia, which is located in Fairfax County Virginia.

The contract contained Seller and Buyer Warranties.

Seller Warranties:

The Seller has provided all of the records to the Buyer necessary for the Buyer to make an informed choice on the purchase of the business.
The Business is organized and duly incorporated under the laws of the state of Maryland.
Seller has the authority to sell the business.
Seller has prepared accurately and timely filed all tax returns on behalf of the business.
Seller has provided Buyer with accurate payroll records of the business.
There has been no act or omission by the Seller which would give rise to a claim of any kind.
The Seller will not compete in a similar business to that being sold with the Buyer for a period of three years within the Washington, Maryland, Virginia area.
Buyer Warranties

The Buyer has the financial resources to complete the transaction.
The Buyer is satisfied with the documents presented and the representations made by the Seller with regard to the business.
Buyer acknowledges that they are experienced business operators and have a complete understanding of the operation of the SL&B.
The Buyers and Sellers closed on the sale of SL&B on February 1, 2021. By July 2021, Leonard Jones realized that not only wasn't he making the amount of money claimed under Ledger 1, but he also wasn't even making the amount of money claimed in ledger 2. At this time, Mr. Jones decided to stop making payments to the Mulvaneys on the purchase money chattel mortgage. Leonard Jones contacted P&G in September 2021 after they attempted to resolve the matter directly with the Mulvaneys. The Mulvaneys contacted the TLDT in September 2021 when they realized there was an issue and that the Mulvaneys were seeking legal counsel.

Background:

The BOC case has now been filed in the Circuit Court for Montgomery County Maryland. The litigation has now entered the discovery phase. you are on the P&G Team, Attorney Piazza

Attorney Gonzalez of TLDT has asked for a draft Interrogatories and a Request for Production to be served on P&G's attorney for the Plaintiff.

Both Attorneys have noted to their teams that under the Federal Rules of Civil Procedure Rule 33, the number of interrogato4ies that can be propounded to the other party is limited to 25, including sub-parts. The corresponding Maryland Rule is found at Maryland Code §2-421 and it also limits the number of interrogatories to 25 that can be propounded to the other side, including subparts. Both rules allow a party to seek leave of court to ask additional interrogatories for cause.