Supplemental Investment Interrogatories

supplemental interrogatory resolving discovery disputes

Supplemental investment interrogatories are a crucial tool in legal proceedings, particularly in cases involving financial disputes, divorce proceedings, or business litigation where a party’s assets and investment activities are relevant. These interrogatories, sent after initial interrogatories have been answered, aim to clarify, update, and expand upon the information previously provided. They are designed to uncover potentially hidden assets, verify the accuracy of disclosed information, and gain a deeper understanding of a party’s investment strategies and financial dealings.

The purpose of supplemental interrogatories is multifaceted. Firstly, they allow attorneys to keep pace with changes in a party’s investment portfolio. Investments fluctuate, and new assets may be acquired after the initial interrogatory responses. Supplemental interrogatories ensure that the information presented is current and accurately reflects the party’s financial situation at the time of trial or settlement.

Secondly, these interrogatories can be used to explore inconsistencies or ambiguities in the initial responses. If the answers to the initial interrogatories raise suspicions or suggest that information is being withheld, supplemental interrogatories can probe deeper. They might ask for more detailed documentation, clarification of specific transactions, or explanation of discrepancies between reported income and investment activity.

Thirdly, supplemental interrogatories facilitate the discovery of new information. They can address areas that were not initially covered in the first set of interrogatories or explore leads uncovered during document review or depositions. For example, if a party mentions a previously undisclosed investment account during a deposition, supplemental interrogatories can be used to gather detailed information about that account.

Common topics covered in supplemental investment interrogatories include:

Updated Investment Account Statements: Requesting the most recent statements for all investment accounts, including brokerage accounts, retirement accounts, and any other accounts holding securities or other investments.
Transactions Since the Initial Disclosure: Asking for details on all investment transactions (purchases, sales, transfers) that have occurred since the date of the initial interrogatory responses.
Specific Investment Strategies: Inquiring about the investment strategies employed by the party, including their risk tolerance, investment goals, and reliance on financial advisors.
Beneficial Ownership: Probing into the beneficial ownership of any investments held in trusts, partnerships, or other entities. This is particularly important to uncover hidden assets.
Distributions and Withdrawals: Requesting information on any distributions or withdrawals from investment accounts, including the purpose of the withdrawals and where the funds were ultimately deposited.

Drafting effective supplemental investment interrogatories requires careful planning and a thorough understanding of the relevant financial issues. Attorneys should tailor the interrogatories to the specific facts of the case and ensure that they are clear, concise, and not overly burdensome. The goal is to obtain complete and accurate information that will help them effectively represent their client’s interests.