600 North Frederick Road, LLC. v. Burlington Coat Factory of Maryland, LLC.

Petitioner 600 North Frederick Road, LLC, owner of one parcel of a three-parcel tract of land in Montgomery County, appealed the judgment from the Court of Special Appeals that affirmed the judgment of the circuit court. In that case, the court held that Petitionerâs predecessor in interest and the owner of one of the other parcels could modify bilaterally an earlier declaration executed and recorded by a single predecessor-owner at the time when all three parcels were under single ownership. The modification now limits Petitionerâs development rights on its later-acquired parcel, notwithstanding that two earlier declarations provided that any purported modification required the consent of the owner(s) of all three parcels. The court also ruled that the revised declaration applied not only to any third-party developer of the restricted parcel, but to Petitioner as owner of the proposed-for-development restricted parcel. Petitioner claims that because the original declaration required expressly the consent of the owner(s) of all of the parcels, an attempt to modify the agreement in a writing executed by less than all of the owners is ineffective, and the revised declaration is invalid and unenforceable. Respondent Burlington Coat Factory of Maryland, LLC, the assignee-leaseholder on one of the parcels, argued that two parties to a tripartite agreement may modify that agreement in writing, provided that the modifications do not prejudice the non-signatory party. The Supreme Court, on review of the record, held that the modifications in the revised declarations in this case were valid and enforceable absent a showing of prejudice by the non-consenting parcelâs owners. Furthermore, the Court held that the restrictions contained in the revised declaration apply not only to third-party developers of the restricted parcel, but also to Petitioner as owner. The Court affirmed the appellate courtâs decision, and remanded the case to the circuit court for further proceedings.