Forward v. McNeily

811 A.2d 855, 148 Md. App. 290, 2002 Md. App. LEXIS 202
CourtCourt of Special Appeals of Maryland
DecidedDecember 2, 2002
Docket2071, Sept. Term, 2001
StatusPublished
Cited by6 cases

This text of 811 A.2d 855 (Forward v. McNeily) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forward v. McNeily, 811 A.2d 855, 148 Md. App. 290, 2002 Md. App. LEXIS 202 (Md. Ct. App. 2002).

Opinion

SALMON, Judge.

This is an appeal from an interlocutory order entered on November 16, 2001, by the Circuit Court for Montgomery County. The order reads, in pertinent part, as follows:

*295 1. Plaintiffs’ Motion for Ancillary Relief in Aid of Enforcement is granted.
2. Defendant Forward shall issue stock certificates to the Plaintiff Curtían R. McNeily for 44 percent of the stock of Business Information Network, Inc. and to Mark Burnett for 5 percent of the stock of Business Information Network, Inc. in accordance with their stock interests as determined by the judgment recorded in this court and entered in Business Information Network, Inc. et al. v. David R. Forward, Case No. CAL 94-25360, in the Circuit Court for Prince George’s County, Maryland.
3. Defendant Forward shall bring the stock register of BIN into conformity with the judgment entered in Business Information Network, Inc. et al. v. David R. Forward, Case No. CAL 94-25360, in the Circuit Court for Prince George’s County, Maryland.
4. Defendant Forward is enjoined from any disposition of the property subject to the judgment or from any disposition of the documents representing an interest in such property.

Under the provisions of section 12-303(1), 3(i) and (v) of the Courts and Judicial Proceedings Article of the Maryland Code (1998 RepLVoL), the above interlocutory order was immediately appealable, even though no final judgment was entered. 1 The parties against whom the order was direct *296 ed, Catalyst Equity Corporation and David R. Forward, filed an appeal from the foregoing order and raise the following question: 2 viz:

Did the circuit court for Montgomery County err in granting appellees’ motion for ancillary relief in aid of enforcement of a Prince George’s County judgment, where no judgment was entered in Prince George’s County?

I.

The resolution of the sole issue raised in this appeal concerns procedural matters that took place in three cases, one in Prince George’s County and two in Montgomery County.

A. The Prince George’s County Case

In December 1994, a lawsuit was filed in the Circuit Court for Prince George’s County by Business Information Network, Inc. (“BIN”); Mark Burnett; Curtían McNeily; Curtían McNeily as a receiver for P.C. Consultants, Inc. (“PCI”); Curtían McNeily and Mark Burnett as shareholders of BIN; and BIN as a nominal plaintiff. The individual plaintiffs were all shareholders — or former shareholders — of BIN. The defendants in that lawsuit were David Forward; his wife, Maryann; and the law firm of Ginsberg, Feldman and Press, Chartered *297 (“GFB”). The Prince George’s County complaint contained seven counts, including one alleging legal malpractice against GFB. Prior to trial, the claim against GFB was dismissed.

On November 2, 1995, plaintiffs filed a “First Amended Complaint for Injunctive and Declaratory Relief and Damages.” In Counts I, II, and III, the plaintiffs asked the court to

[djeclare that McNeily is the lawful owner of at least forty-four percent (44%) of BIN stock and that Burnett is the lawful owner of at least five percent (5%) of BIN stock ....

The parties filed multiple pretrial motions in the period between 1994 and 1998. Resolution of those motions delayed the start of the jury trial until November 30, 1998. The jury thereafter found for the plaintiffs on some, but not all, issues by answering a number of questions set forth on a special verdict sheet.

The jury found that David Forward had breached the fiduciary duty he owed to certain of the plaintiffs in several ways. The jury also found that Mr. Forward had breached a contract with Messrs. Burnett and McNeily and had converted to his own use certain shares of their stock. The jury awarded damages to the various plaintiffs that cumulatively totaled over four million dollars.

On the special verdict sheet, the jury was asked to name the current shareholders of BIN and their percentage interest. Evidently, that question was posed so that the court could declare the rights of the parties as requested in Counts I — III. The jury answered that question as follows:

David R. Forward % 51
Curtían R. McNeily % 44
Mark Burnett % _5

On January 19, 1999, the trial judge, Honorable Darlene Perry, pursuant to the answers to other questions set forth on the special verdict sheet, entered judgment against David Forward: (1) in favor of Mark Burnett in the amount of $324,888; (2) in favor of Curtían McNeily in the amount of *298 $1,000,000; (3) in favor of BIN in the amount of $812,888; and (4) in favor of PCI Receiver in the amount of $2,630,480. Punitive damages of $5,000 and $10,000 were awarded to Mark Burnett and Curtían McNeily, respectively — also against David Forward.

Three days after the jury’s monetary awards were reduced to separate judgments, plaintiffs filed a motion for an accounting and declaratory judgment. In regard to their request for declaratory judgment, the motion read:

Plaintiffs have moved the court for ... a judgment declaring that:
1. The books and records of [BIN] reflect that Curtían R. McNeily is the rightful owner of 44 percent, and Mark C. Burnett is the rightful owner of 5 percent of the stock of [BIN] and that certificates of stock be issued to reflect the ownership percentages;
2. The June 20, 1997 transfer of at least 49 percent of [BIN] stock to Catalyst Equity Corporation of New Mexico is null and void;
3. Since December 4, 1989, two lawful members of the [BIN] Board of Directors are and have been Mark Burnett and Brian Boland.
4. Curtían R. McNeily and Mark C. Burnett are entitled to elect two of the Directors to [BIN].
5. David R. Forward, because of his malicious tortious conduct, is forever barred from acting as an officer, director or employee of [BIN][o]r benefitting in any manner from the judgment in favor of [BIN].
Declaratory Judgment by the Court is necessary to effect complete and equitable implementation of the jury verdict and to prevent defendant David R. Forward from profiting from his own wrongdoing.
* * *
For the reasons set forth above, the Court should enter a judgment declaring the rights of the plaintiffs under the Agreement to Associate in the form attached.

*299

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Bluebook (online)
811 A.2d 855, 148 Md. App. 290, 2002 Md. App. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forward-v-mcneily-mdctspecapp-2002.