by Raymond Daniel Burke | Feb 14, 2017
Proposed legislation now pending in the Maryland General Assembly would prevent condominium developers from limiting the ability of the council of unit owners and individual unit owners to bring construction defect claims for issues affecting the condominium. Senate Bill 670 and House Bill 676 would prevent developers from including certain provisions in condominium governing documents or contracts of sale that act as an impediment to claims. Specifically, the proposed legislation relates to claims alleging the failure of the developer to comply with (1) applicable building codes; (2) plans and specifications for the project approved by the local governing authority; (3) manufacturer’s installation instructions for building products used the condominium; and (4) warranty provisions under Sections 10-203 and 11-131 of the Real Property Article.
As to such claims, the developer may not include provisions that:
(a) Shorten the statute of limitations for filing claims;
(b) Waives application of the “discovery rule” for purposes of determining when a claim accrued;
(c) Requires the council or a unit owner in an arbitration proceeding to assert a claim within a period shorter than the applicable statute of limitations; and
(d) operates to prevent a council or unit owner from filing a law suit, initiating arbitration proceedings, or otherwise asserting a claim within the applicable statute of limitations. (more…)
by Raymond Daniel Burke | Feb 13, 2017
Pitchers and catchers report to Ed Smith Stadium in Sarasota, Florida today as the Baltimore Orioles begin spring training for the 2017 season; so it is time for me to step back from condo law for a moment and provide my annual commentary on the state of the team. This year, I would like to focus on completing the position-player roster. Here are the current options as I see them: (more…)
by Raymond Daniel Burke | Feb 13, 2017
House Bill 41 now pending in the Maryland General Assembly would require condominiums, homeowner associations and cooperative housing corporations to register annually with the Maryland Department of Assessments and Taxation. Similar to a bill that was filed during the 2016 session but did not pass, the proposed law would require registration information that includes the name and contact information for each officer, board member, and property manager. along with such other information as the Department might require. The bill proposes a $3 registration fee, and a $50 fine for failing to register.
by Raymond Daniel Burke | Jan 24, 2017
In Daniels v. NVR, Inc., t/a Ryan Homes, the United States District Court for the District of Maryland upheld the validity of a contractual provision in a residential home purchase agreement that reduced the normal period of limitations for filing suit to one-year, despite the fact that the parties had entered into a tolling agreement. In Maryland, the general period of limitations applicable to most civil claims is the three-year period established in Md. Cts. & Jud. Proc. Code Ann. Sec. 5-101. This case involved construction defect claims concerning a newly constructed home. The NVR purchase agreement contained a provision that made claims and disputes subject to a one-year period of limitations. The Court, which had jurisdiction on diversity found that this was not inherently unreasonable, and, therefore, was fully enforceable.
Interestingly, the parties had entered into a tolling agreement, which suspended the running of limitations during attempts to come to a resolution of the issues. However, NVR successfully argued that the tolling agreement only suspended “statutes of limitations,” and did not toll a “contractual limitations period.”
by Raymond Daniel Burke | Jan 4, 2017
Effective January 1, Ober|Kaler joined the national firm, Baker Donelson. The combined firm maintains the name Baker Donelson and has more than 800 attorneys across 25 offices in ten states and Washington, D.C. I am excited and privileged to begin 2017 as a Baker Donelson shareholder in their Baltimore office, and look forward to continuing communications and sharing of information with the many readers and followers of this blog.
