Shih Ping Li v. Tzu Lee
62 A.3d 212
Md. Ct. Spec. App.2013Background
- Li challenged the circuit court's denial of his Motion to Set Aside the 2005 First Agreement and the 2008 Second Agreement.
- The circuit court held the agreements were valid, not unconscionable, and no confidential relationship existed between Li and Lee or with Gu, who drafted the agreements.
- Li sought to invalidate the agreements on grounds of unconscionability, lack of independent counsel, and potential attorney-client/confidentiality issues.
- Li later filed a Motion to Revise (fraud-based) after obtaining USCIS records via FOIA suggesting Gu’s representations may have been broader than admitted.
- The court found no confidential relationship, no duress/fraud, and that Li had ample opportunity to obtain counsel, rendering the agreements enforceable.
- The judgments incorporating the Second Agreement into the divorce decree were affirmed on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a confidential relationship existed and the agreements were valid | Li contends Gu acted as his attorney, creating a confidential relationship calling validity into question. | Lee argues no confidential relationship existed and Li benefited from negotiated terms; independent counsel was advised but not required. | No confidential relationship; agreements valid. |
| Whether the denial of the Motion to Revise was an abuse of discretion | Li claims extrinsic fraud and injustice; he seeks relief under Md. Rule 2-535. | Lee contends no extrinsic fraud was proven and no hearing was required under Rule 2-535. | No abuse of discretion; no hearing required under Rule 2-535. |
| Whether the agreements were unconscionable at formation | Li argues terms were unfair due to lack of counsel and confidential leverage. | Lee argues terms were negotiated, not unconscionable, and Li had opportunity to compare assets and seek counsel. | Not substantively or procedurally unconscionable. |
Key Cases Cited
- Blum v. Blum, 59 Md.App. 584, 477 A.2d 289 (Md. App. 1984) (guidelines for unconscionability and confidential relationship considerations)
- Williams v. Williams, 306 Md. 332, 508 A.2d 985 (Md. 1986) (buyer’s remorse and unconscionability standards in separation agreements)
- Hale v. Hale, 74 Md.App. 555, 539 A.2d 247 (Md. App. 1988) (confidential relationship analysis in separation agreements)
- Walther v. Sovereign Bank, 386 Md. 412, 872 A.2d 735 (Md. 2005) (substantive unconscionability standard and one-sided terms)
- Brooke v. Atty. Griev. Comm’n, 374 Md. 155, 821 A.2d 414 (Md. 2003) (restatement approach to determining attorney-client relationships)
- Siskind, 401 Md. 41, 930 A.2d 328 (Md. 2007) (attorney-client relationship formation and confidentiality standards)
- Miller v. Mathias, 428 Md. 419, 52 A.3d 53 (Md. 2012) (procedures for Md. Rule 2-535 motions and hearings)
- Lasater v. Guttmann, 194 Md.App. 431, 5 A.3d 79 (Md. 2010) (burden-shifting in confidential-relationship determinations)
- O’Hara v. Kovens, 60 Md.App. 619, 484 A.2d 275 (Md. 1984) (factors for confidential relationships and duress; awareness of rights)
- Dashiell v. Meeks, 396 Md. 149, 913 A.2d 10 (Md. 2006) (exceptional cases allowing outside-record evidence in review)
