265 A.3d 1109
Md. Ct. Spec. App.2021Background
- BNP is a 50/50-member real-estate LLC (Balsamo and Zorzit); Norino Properties is Zorzit-controlled and had a 1998 Management Agreement to provide services to BNP.
- In 2012 Balsamo sued (Balsamo I); after a 2014–15 bench trial the court denied dissolution but ordered some relief; that judgment became final.
- In 2019 Balsamo filed a new (amended) complaint individually and derivatively alleging post-2017 self‑dealing, obfuscated records, improper loans, and seeking dissolution and other relief against Norino and Zorzit.
- Defendants moved to dismiss for failure to state a claim and on res judicata grounds; the circuit court granted the motion with prejudice and denied leave to amend; Balsamo moved to alter and sought in banc review.
- The in banc panel held the dismissal was a “trial” under Article IV, § 22 (so in banc jurisdiction existed) and reversed the denial of leave to amend, giving Balsamo 30 days to file a second amended complaint; this judgment was affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Article IV, § 22 permits in banc review of the circuit court's dismissal (i.e., whether the dismissal was a “trial”) | Balsamo: § 22 is not limited to evidentiary merits trials; a final judgment dismissing claims qualifies as a "trial." | Zorzit/Norino: “trial” means an evidentiary/merits trial; a dismissal for failure to state a claim is not a "trial," so no in banc jurisdiction. | Court: "trial" includes any step that decides issues of law or fact and results in a final judgment; the dismissal with prejudice was a "trial" for § 22 purposes, so in banc review was proper. |
| Whether the circuit court abused its discretion by denying leave to amend the complaint | Balsamo: proffered newly obtained records and post‑2017 factual allegations; amendments should be freely allowed absent prejudice or futility. | Zorzit/Norino: plaintiff already had multiple chances; further amendment would cause delay and prejudice; defects were incurable. | Court: Abuse of discretion — given the proffer of new evidence, lack of discovery/trial date, and no clear futility or prejudice, leave to amend should have been granted; in banc panel properly reversed and allowed amendment. |
Key Cases Cited
- Berg v. Berg, 228 Md. App. 266 (Md. Ct. Spec. App. 2016) (adopted broad definition of “trial” for Art. IV, § 22 as that step deciding issues or questions of fact)
- Miller v. Tobin, 18 F. 609 (C.C.D. Or. 1883) (demurrer disposition is a "trial" when it results in a final disposition)
- Alley v. Nott, 111 U.S. 472 (1884) (disposition of a demurrer that resolves the merits is a trial of the action)
- State v. Phillips, 457 Md. 481 (Md. 2018) (discussed scope of in banc review and interplay with appellate rights)
- RRC Ne., LLC v. BAA Maryland, Inc., 413 Md. 638 (Md. 2010) (policy favoring liberal allowance of amendments when justice permits)
- Schmerling v. Injured Workers' Ins. Fund, 368 Md. 434 (Md. 2002) (leave to amend is within trial court discretion; reversal only for clear abuse)
