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UNITED STATES DISTRICT COURT
DISTRICT OF MARYLAND

CHAMBERS OF

J. FREDERICK MOTZ
UNITED STATES DISTRICT JUDGE

101 WEST LOMBARD STREET BALTIMORE, MARYLAND 21201 (410) 962-0782 (410) 962-2698 FAX

January 9, 2008

MEMO TO COUNSEL RE: Jeffrey Santacroce, et al. v. Charles Funkhouser, et al. Civil No. JFM-07-2175

Dear Counsel: I have reviewed the memoranda submitted in connection with defendant's motion to dismiss the original complaint and motion to dismiss the amended complaint. Defendant's motion is granted. It is clear to me that the various claims asserted by plaintiff arose out of or from the sales contract or the transaction that was the subject of the contract. Thus, the claims squarely fall within paragraph 17 of the sales contract requiring mediation of disputes. Whether or not the Maryland "discovery rule" would apply so as to relieve plaintiffs of a limitations bar they would otherwise face is not the issue. The clear intent of paragraph 17 is to require the parties to attempt non-binding mediation in connection with all claims arising from the sale of the residence sold by defendants to plaintiffs before resorting to litigation. I will also grant defendants attorneys' fees in the amount of $1,000. Again, paragraph 17 could not be more clear that the parties initiating or commencing a court action before attempting mediation are to pay "all costs and expenses, including reasonable attorneys' fees, incurred to enforce the obligation" to go to mediation. However, the amount of attorneys' fees I am awarding is substantially less than that requested by defendants. Although defendants certainly acted within their rights in removing this action to federal court, in my view paragraph 17 contemplated that a party who initiated litigation before attempting mediation simply was agreeing to pay costs and expenses, including reasonable attorneys' fees, incurred by the other side in addressing the merits of the mediation provision of paragraph 17. Defendants could have addressed those merits in the Circuit Court for Frederick County as well as in this court, and therefore I am not awarding any fees in connection with effecting the removal. Despite the informal nature of this letter, it should be flagged as an opinion and docketed as an order. Very truly yours, /s/

J. Frederick Motz United States District Judge

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND JEFFREY L. SANTACROCE, ET AL. v. CHARLES FUNKHOUSER, ET AL. * * * Civil No. JFM-07-2175 * * ***** ORDER

For the reasons stated in the accompanying memorandum to counsel, it is, this 9th day of January 2008 ORDERED 1. Defendant's motion to dismiss amended complaint is granted; 2. Defendants are awarded attorneys' fees in the amount of $1,000; and 3. This action is dismissed (without prejudice in the event that the mediation process contracted for by the parties does not result in resolution of the parties' dispute).

/s/ J. Frederick Motz United States District Judge



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