Maryland Condo Law Blog
An online resource for condominium and homeowner associations and their members, and for developers, builders, contractors, architects, engineers and others in the building industry.
Bill In Maryland Legislature Would Add Business Negotiations As A Further Basis For A Closed Meeting Of A Condominium’s Board of Directors
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.” read more…
Maryland Legislature Considers Bill To Require Information As To “Potential” Special Assessments In Resale Contracts
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.
I Will Be Speaking On Construction Defects at a May 1 Seminar in Baltimore
I will be part of a faculty of local attorneys presenting a seminar entitled: “Anatomy of a Defect: What it is and the Rules that Apply.” The program is sponsored by the National Business Institute, and will be presented in Baltimore on May 1, 2013 at the Radisson Lord Baltimore Hotel. My presentation will focus on what constiutes a defect, including common types of patent and latent defects, as well as pertinent statutes, codes and regulations.
More Than Just A Game
[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. read more…
Maryland Court of Appeals Grants Certiorari To Consider Admissibility Of Medical Testimony In Mold Cases
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. read more…
Significant Maryland Condominium Arbitration Award Confirmed By Balitmore City Circuit Court
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. read more…
History Has Lessons for Why President Obama Was Reelected
By Raymond Daniel Burke – Reprinted from The Baltimore Sun Commentary November 19, 2012
Baltimore’s Fifth Regiment Armory is a good place to start for some perspective on the recent presidential election. Within its gray stone walls, the tumultuous 1912 Democratic National Convention played a major scene in the political drama that resulted in an incumbent president not only being defeated, but finishing third in the national election. The dynamics that led to such an extraordinary result are lessons that apply to any analysis of an election involving a sitting president.
We are beset daily with opinions as to why Mitt Romney managed to win only one swing state against an incumbent presiding over an underwhelming economy. Many analysts point to the failure of the Republican Party to come to terms with the nation’s shifting demographics. Others go so far as to bemoan a perceived rejection of traditional free enterprise values in favor of an entitlement mentality. All of these theories, however, could benefit from a dose of history. read more…
Disclosure of Code Violations In Maryland Condo Resale Certificates May Mean Only “Charged Violations”
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. read more…
Maryland Court of Special Appeals Precludes Use of Differential Diagnosis To Support A Causal Connection Between Exposure To Mold And Human Illness
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.
The Harborview Condominium Case
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. read more…
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The Maryland Condo Law Blog is written by Raymond Daniel Burke. One of the region's top construction and real estate development lawyers, Ray has more than 35 years of experience in matters relating to condominium and other multi-use development matters.