Justia Maryland Supreme Court Opinion Summaries

Articles Posted in Landlord - Tenant
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The Supreme Court of Maryland has ruled that the term "rent" under Real Property § 8-401, as applied to residential leases, refers to the fixed, periodic payments a tenant is required to make for use or occupancy of a rented premises. This definition excludes additional charges such as late fees, attorney’s fees, and court costs. The court also ruled that any provision in a residential lease that allows a landlord to allocate payments of "rent" to other obligations, thereby subjecting a tenant to eviction proceedings based on failure to pay "rent", violates Real Property § 8-208(d)(2). Further, penalties for late payment of rent, capped at 5% of the monthly amount of rent due, are inclusive of any costs of collection other than court-awarded costs. Finally, the court ruled that the Circuit Court erred in declining to review the merits of the tenants’ second renewed motion for class certification. The case has been remanded for further proceedings in line with these holdings. View "Westminster Management v. Smith" on Justia Law

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The Court of Appeals held that when a landlord attempts to collect unpaid rent from a tenant during a period when the landlord was unlicensed a tenant may have a claim under the Maryland Consumer Debt Collection Act (MCDCA) and the Maryland Consumer Protection Act (MCPA) to the extent that the landlord's unlawful collection activity caused the tenant to suffer damages, including any rent payments made responding to the landlord's attempts to collect unpaid rent.Specifically, the the Court of Appeals held (1) a tenant who voluntarily paid rent to a landlord who lacked a rental license may not bring a private action under the MCPA or MCDCA to recover restitution of rent based upon the landlord's lack of licensure pursuant to the Baltimore City Code, Art. 13, 5-4; and (2) when a municipality or county enacts a rental license law conditioning the performance of a residential lease upon the issuance of a rental license a landlord may not file an action against a tenant to recover unpaid rent attributable to the period when the property was not licensed. View "Assanah-Carroll v. Law Offices of Maher" on Justia Law

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The Court of Appeals held that Baltimore City Council's enactment of a local law did not create a private right of action for Baltimore City tenants to recoup rent payments and related fees they paid in connection with their use and occupancy of rental dwellings during a period when the landlord did not have a valid rental license.Petitioners, tenants in a multi-unit apartment building, filed a putative class action alleging that Respondent did not hold an active rental license for the property, as required by the Baltimore City Code, and seeking to recoup paid rent and other fees paid to Respondent. The circuit court dismissed the case prior to a determination of issues relating to class certification. The court of special appeals largely agreed. The Court of Appeals affirmed, holding that section 5-4(a)(2) of Article 13 of the Baltimore City Code does not provide a private right of action to recover rent and related payments that a tenant made during a period in which the landlord was unlicensed. View "Aleti v. Metropolitan Baltimore, LLC" on Justia Law

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The Supreme Court determined that the Legislature, through its enactment of a comprehensive statutory framework governing residential landlord and tenant relations, achieved an appropriate balance between a landlord's right to recover a landlord's property interest at the conclusion of a tenancy and a tenant's right to safe and habitable housing conditions during the pregnancy.After Plaintiff provided Defendants, who resided in Plaintiff's building as a month-to-month tenants, with a sixty-day written notice to quit and Defendants refused to vacate the premises, Plaintiff filed tenant holding over actions under N.Y. Real Prop. 8-402. In both cases, the circuit ordered that possession of the property be returned to Plaintiff. Defendants filed a petition for writ of certiorari asking the Supreme Court to hold that the tenants holding over statute is unavailable to an unlicensed landlord seeking a writ of possession of the landlord's property after the expiration of a tenancy. The Supreme Court declined to adopt such a holding and affirmed. View "Velicky v. CopyCat Building LLC" on Justia Law

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The Court of Appeals reversed in part and affirmed in part the judgment of the court of special appeals dismissing an amended complaint for failure to state a claim upon which relief can be granted, holding that Petitioners' amended complaint adequately set forth a cause of action under Md. Code Real Prop. (RP) 7-113.Petitioners, occupants of residential property that they owned or leased, brought this action against Respondents, a mortgage servicer and a real estate broker, after Respondents posted eviction notices on Petitioners' properties in an attempt to gain possession of the properties without a court order. Petitioners claimed that Respondents violated RP 7-113 and the Maryland Consumer Protection Act (MCPA), Md. Code Comm. Law 13-101 et seq. The circuit court dismissed the complaint for failure to state a claim. The court of special appeals affirmed. The Court of Appeals reversed in part, holding (1) Petitioners set forth a cause of action under RP 7-113; and (2) this Court has not established a more demanding standard for pleading damages in private actions brought under the MCPA. View "Wheeling v. Selene Finance LP" on Justia Law

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In this summary ejectment proceeding, the Court of Appeals reversed the judgment of the circuit court affirming the judgment of the district court precluding Tenant from asserting and litigating defenses under the implied warranty of habitability and the rent escrow statutes, holding that Tenant was statutorily entitled to raise such defenses during the proceeding and to have them fully considered.Landlord brought his summary ejectment proceeding alleging that Tenant had failed to pay rent for five months and seeking repossession of the property. Tenant moved to dismiss the complaint on grounds that Landlord did not have use and occupancy permit, which the district court denied. Tenant also attempted to assert defenses to summary ejectment, which the district court denied. The circuit court affirmed. The Supreme Court reversed, holding (1) the district court properly denied the motion to dismiss; but (2) a claim for breach of the warranty of habitability or under the rent escrow statutes may be raised as a defense in a summary ejectment proceeding. View "Pettiford v. Next Generation Trust Service" on Justia Law

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The Court of Appeals affirmed the decision of the court of special appeals affirming the judgment of the trial court granting Defendants' motion to dismiss this action brought by a former tenant of a public market in Baltimore City, holding that the tenant was not a "displaced person" as that term is defined in Md. Code Ann. Real Prop. (RP) 12-201(e)(1)(i), and therefore, the tenant was not wrongfully denied moving and relocation expenses and there was no unconstitutional taking.After a rental agent for the public market advised the tenant that its business did not fit in the redevelopment plans for the market and that it should pursue other options, the tenant vacated the market. The tenant sued seeking compensation for moving and relocation expenses as a displaced person and for an unconstitutional taking. The trial court dismissed the action, concluding that the tenant did not qualify as a "displaced person" because the exemption in RP 12-201(e)(2)(iii) applied. The court of special appeals affirmed. The Court of Appeals affirmed, holding that the tenant was both not a displaced person under RP 12-201(e)(1)(i) and exempt from qualifying as a displaced person under RP 12-201(e)(2)(iii). View "Wireless One, Inc. v. Mayor & City Council of Baltimore" on Justia Law

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The Court of Appeals affirmed the judgment of the Court of Special Appeals affirming the judgment of the circuit court granting summary judgment in favor of Respondent in this action brought by Petitioners seeking to collect real estate brokerage commissions allegedly due after the tenant of the property exercised its option to renew a lease that Petitioners had procured for a prior owner, holding that the lower courts’ judgments were correct.Specifically, the Court of Appeals held (1) even if Petitioners qualified as third-party beneficiaries, that only gave them the right to sue whomever was liable; (2) because Respondent was not a party to the lease its assignors also were not parties; and (3) in the assignment of the lease the assignors had expressly rejected any obligations of the lease, and therefore, Respondent was not liable. View "Cushman & Wakefield of Maryland, Inc. v. DRV Greentec, LLC" on Justia Law

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The Court of Appeals reversed the decision of the circuit court affirming the judgment of the district court in favor of Landlord on Landlord’s suit against Tenant seeking to recover unpaid rent that it claimed Tenant owed from 2008, holding that actions for back rent under residential leases are subject to a three-year period of limitations regardless of whether the lease includes provisions that purport to convert it into a contract under seal.In 2007, Tenant entered into a residential lease for an apartment. In 2015, Landlord brought suit seeking to recover unpaid rent it claimed Tenant owed from 2008. Tenant claimed that Landlord had not filed suit within the three-year period of limitations in Md. Code Ann. Cts & Jud. Proc. (CJ) 5-101 that applies to action seeking back rent. The district court entered judgment for Landlord, concluding that the lease qualified as a “contract under seal” and that the twelve-year statute of limitations set forth in CJ 5-102 applied. The circuit court affirmed. The Court of Appeals reversed, holding that the three-year period of limitations set forth in CJ 5-101 governs actions for back rent under residential leases, regardless of whether the lease includes provisions that purport to convert it into a contract under seal. View "Smith v. Wakefield, LP" on Justia Law

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Md. Code Ann., Real Prop. 8-402.1(a)(1)(i) requires that before a landlord may file a breach of lease action, the tenant must breach the lease, the notice requirement must expire, and the tenant must refuse to comply with the notice to vacate.Here, the circuit court determined that Landlord did not need to wait for the fourteen-day notice period to expire before it filed a complaint for breach of lease. The Court of Appeals reversed, holding (1) the circuit court erred in its construction of section 8;402.1(a)(1)(i)(2)(b) when it concluded that Landlord was not required to exhaust the notice requirement prior to filing a complaint for possession; and (2) Landlord’s notice to vacate was not issued in accordance with the terms of the lease with Tenant, and this deficiency could not be cured by the subsequently filed complaint. View "Hunter v. Broadway Overlook" on Justia Law