Karen Kunda sold her general store, the property it was on, and the stock of her company to the Morses. The Morses made two deposits and were to pay the balance to Ms. Kunda over time and with a large payment on a stated date. The Morses missed a payment, and Ms. Kunda evicted them. She also exercised her rights under a voting trust involving the company stock, to oust the Morses as officers of the corporation. Ms. Kunda acted before the expiration of the 30-day cure period that was provided for in the agreement of the parties. Therefore, the Circuit Court for Cecil County awarded damages to the Morses for Ms. Kunda's breach. Kunda v. Morse, 229 Md. App. 295 (2016).
In its opinion, the Court of Special Appeals noted that the primary income of the store was revenue from slot machines "of questionable legality." This fact, however, was not relevant to the court's decision.
Practice Note: Read your documents! Most of the provisions that govern the relationship of parties to a business transaction are contained in the documents that they sign. The courts will hold the parties to their agreements, and particularly creditors will not be able to enforce more remedies, or faster, than as set forth in the papers.
For questions, please contact Ed Levin (410) 576-1900.