by Raymond Daniel Burke | Feb 27, 2013
House Bill 388, now pending before the General Assembly, would permit a condominium’s board of directors to hold a closed meeting to discuss negotiations pertinent to a business transaction. It would amend Section 11-109.1 of the Maryland Condominium Act to permit closed board meetings for “consideration of the terms and conditions of a business transaction in the negotiation stage if the disclosure could adversely affect the economic interests of the council of unit owners.” (more…)
by Raymond Daniel Burke | Feb 25, 2013
House Bill 23, now before the Maryland General Assembly, would require information concerning “potential” special assessments to be included in resale contracts for both condominium units and properties subject to a homeowers association. Perhaps in response to the protracted litigation in MRA Property Management, Inc. v. Armstrong, 426 Md. 83, 43 A. 3d 397 (2012), which concerned the alleged failure to disclose knowledge of defects that would ultimately require special assessments to repair, the proposed legislation would amend Section 11-135 of the Maryland Condominium Act and Section 11B-106 of the Maryland Homeowners Association Act to require that any resale contract include a notice of “any potential special assessment that is referenced within the preceding 12 months in” (1) the agenda or minutes of any meeting of the board of directors of a condominium, or the governing body of a homeowners association; or (2) a vote at a meeting of a condominium’s council of unit owners or a homeowners association. As proposed, the new requirement would apply to a mere reference to the possibility of a special assessment, and not to just actual special assessment proposals or enactments.
by Raymond Daniel Burke | Feb 5, 2013
[REPRINTED FROM THE BALTIMORE SUN, FEBRUARY 3, 2013
The spectacular playoff run that brings the Ravens to this week’s Super Bowl rightfully has the City literally and figuratively aglow in purple. Of course, there are those who will assert that it is only a game, and there are far more pressing issues that should rightfully occupy the local headlines. It is true that it is just a game. As in many ways game day is just another afternoon. But sometimes it is more than could have ever been imagined. (more…)
by Raymond Daniel Burke | Dec 21, 2012
The Maryland Court of Appeals has granted a petition for certiorari and agreed to hear an appeal from a decsion of the Court of Special Appeals ruling that certain expert testimony is not admissible to support medical clams arising from exposure to mold and other environmental byproducts of damp buildings. (more…)
by Raymond Daniel Burke | Nov 21, 2012
Ober|Kaler Construction Group principal Raymond D. Burke and associates Mathew T. Vocci and Jackson B. Boyd secured judicial confirmation earlier this year in the Circuit Court for Baltimore City of a significant arbitration award on behalf of the owner of a penthouse condominium unit located at 100 Harborview Drive in Baltimore’s Inner Harbor. The Circuit Court’s confirmation of the $1,252,487 arbitration award resulted in what is believed to be Maryland’s largest judgment against a condominium council of unit owners for its failure to maintain, repair, and replace the common elements of a condominium building (in this case, the roof system, exterior façade, and HVAC ductwork of a 27-story high-rise). The Circuit Court also confirmed the arbitration award’s order of specific performance, which requires the condominium’s council of unit owners to replace the building’s roof system, repair its exterior façade, clean its HVAC ductwork, and insulate its rooftop exterior HVAC ductwork. The value of the work required by the specific performance order is approximately $6 million. (more…)
by Raymond Daniel Burke | Nov 2, 2012
As condominium boards and property managers should well know, Section 11-135 of the Maryland Condominium Act imposes a duty on councils of unit owners to provide unit purchasers with a resale certificate whenever a unit is being re-sold. One significant disclosure that must be made in a resale certificate is “[a] statement as to whether the council of unit owners has knowledge of any violation of the health or building codes with respect to the unit, the limited common elements assigned to the unit, or any other portion of the condominium.” This, of course, gives rise to the question of what constitutes “knowledge” of a code violation for disclosure purposes. The Maryland Court of Appeals recently addressed this issue, but only in a footnote contained in MRA Property Management, Inc. v. Armstrong, 426 Md. 83, 43 A. 3d 397 (2012). While the issue was not actually before the Court, it, nevertheless, took the unusual step of considering the question, and concluded that the disclosure requirement involves only “charged violations;” that is, only violations as to which a formal violation notice has been issued by the code authority. It can certainly be argued that “knowledge” of a code violation includes knowing that a deviation from a code requirement exists, such as in the form of an engineer’s report, and that such information is highly relevant to a consideration of what maintenance and repair costs may confront the unit purchaser. However, the Court’s voluntary discussion of this issue, while only dicta, certainly indicates the direction and narrow reading of the statute the Court may take if the issue were to be placed squarely before it. (more…)
by Raymond Daniel Burke | Oct 11, 2012
Mold exposure in damp buildings has become an increasing subject of litigation over the last decade. Often times, these claims are supported by a medical analysis called differential diagnosis. This method as been used by physicians to attribute various symptoms to inhalation of mold in water-damaged buildings. Rather than demonstrating a specific exposure to a specific mold resulting in a specific reaction, differential diagnosis uses a process that “rules out” or “rules in” possible causes of symptoms a patient is experiencing to determine that their symptoms are related to exposure to mold. Differential diagnosis has been frequently used to show an association between exposure to mold in wet buildings and certain human health effects. In its opinion in the case of Montgomery Mutual Insurance Co. v. Chesson, the Maryland Court of Special Appeals held that this method is not sufficiently accepted in the scientific community so as to be used as a basis for medical testimony in mold cases. The Court of Special Appeals reversed a trial court ruling that found such medical testimony to be reliable and admissible.
by Raymond Daniel Burke | Sep 28, 2012
I am frequently asked to discuss my representation of the owner of a multi-million dollar penthouse condominium unit on the top floor of a residential high-rise building on Baltimore’s Inner Harbor known as Harborview Condominium. The claim concerned the failure of the Condominium’s Council of Unit Owners to correct defects in the common elements of the roof, exterior façade and HVAC system. These defects were alleged to have permitted water intrusion through the exterior envelope and into the Plaintiff’s unit, resulting in damage to building components, interior finishes and furnishings and other personal property, along with microbial contamination, which rendered the unit uninhabitable.
The case was tried over five days before a three-judge arbitration panel in September 2011. In November 2011, the arbitration panel awarded the Plaintiff cash damages in the amount of $1,252,487, representing the cost to repair damage to the unit and to remediate the environmental contamination, along with alternative living expenses and other related costs. The panel also issued a specific performance award directing the Condominium to undertake an identified scope of work to repair to the roof, exterior façade and HVAC system. The value of the repair is approximately $5,000.000. The panel ordered that the HVAC repairs be completed within 60 days, and that the remaining building repairs be completed by December 2013. (more…)
by Raymond Daniel Burke | Aug 21, 2012
After granting a motion to reconsider its ruling imposing strict liability on the owners of pit bulls and their landlords, the Maryland Court of Appeals has revised its decision by keeping the ruling in place as to pure bred pit bulls, but deleting its application to cross breds. The Court originally held that the owners of pit bull breeds, as well as landlords who permit tenants to own pit bulls, are strictly liable for damages arising from an attack by these dogs. The decision in Tracy v. Solesky changed the common law, which requires that a plaintiff must prove knowledge on the part of the owner or landlord that the dog was dangerous. Subsequently, the Court determined that it would hear arguments to reconsider the decision. Interested groups on both sides of the contovery filed amicus curie briefs with the Court, and the matter was a subject of the recent special session of the Maryland General Assembly, which considered but did not pass legislation on the issue. The revised ruling means that the common law, requiring proof of knowledge that the dog is dangerous, continues to apply in Maryland to all breeds, including those deemed to be cross-bred pit bulls, but that strict liability applies to pure bred pit bulls. Look for this issue to again be taken up when the Maryland General Assembly meets in its regular session commencing in January 2013.
by Raymond Daniel Burke | Aug 20, 2012
Another bill effecting condominiums and homeowners association that failed to pass during the 2012 session of the Maryland General Assembly related to insurance coverage for property management companies. House Bill 741 would have required management companies, employed by condominiums, homeowners associations or housing cooperatives, to purchase fidelity insurance that would indemnify the assoication from an act or omission arising from fraud, dishonesty or criminal acts by an agent of employee of the mangagement company. The proposed law received an umfavorable report from the Environmental Matters Committee, and never came to a vote.
