QUESTION
Do I have to show what I paid, to prove what it's worth?
Asked on Jan 21st, 2021 on Civil Litigation - Montana
More details to this question:
I am being sued for fraudulent misrepresentation. Nearly 2 yrs ago, I sold my business under terms of an Asset Sale Agreement which included several pieces of equipment. The plaintiff has alleged that I misrepresented the date of manufacture of 1 of the pieces of equipment. The claim is based on their belief that if that item were manufactured when they assumed it to be, it would have been worth more than I had stated it was in an email from 2 months prior to close. As such, they claim to have overpaid for the asset(s). I have formal documentation of them having inspected all equipment & signed off on it. Twice. They have now requested copy of the Bill of Sale for the one item, stating that if I paid less than what I stated as its value, it supports their claim. I do not see the relevance of what I paid having any merit on what it is/was worth. They also no longer own the equipment. Do I have to produce the BOS? What are the legal obligations/implications? Is there supporting case law?
1 ANSWER
During the discovery process in civil litigation, each side has to provide all requested documents which are even arguably relevant to any issue involved in the lawsuit, unless that document is somehow privileged, for example an attorney-client communication. When and iff this evidence is used at trial or in a motion, you can argue that it does not tell the true story for whatever reason, but you still have to produce it. This would be provided for in the code of procedure for the court in which you are litigating, either the Montana code of civil procedure or hte federal code of civile procedure and numerous cases. If you don't comply with your discovery oblgiations, you could be sanctioned by the court, including having judgment rendered against you.
Answered on Jan 22nd, 2021 at 7:30 AM