Justia Maryland Supreme Court Opinion Summaries

Articles Posted in Contracts
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Ember Buckley was a passenger in a motor vehicle driven by Harvey Betts when the vehicle was involved in an accident. Buckley, who sustained injuries in the accident, settled with GEICO, Betts’ insurer, for the full policy limits and signed a full release of all claims against Betts and a hold harmless agreement in favor of GEICO. Buckley then attempted to recover for the remainder of her outstanding medical bills under her uninsured/underinsured motorist (“UM”) policy with The Brethren Mutual Insurance Company (“Brethren”), which denied coverage. Buckley filed suit, alleging breach of contract and seeking the policy limit in compensatory damages. The circuit court entered summary judgment for Brethren, concluding that the release was a general release, and thus released all entities from future claims, regardless of whether they were a party to the release. The court of special appeals reversed, holding that the general release did not prejudice Buckley’s claim against Brethren. The Court of Appeals affirmed, holding (1) the broad, all-inclusive language of the release must be read with an eye toward the parties’ overall intent; and (2) that the court of special appeals correctly held that the release did not waive Buckley’s UM claim against Brethren. View "Brethren Mut. Ins. Co. v. Buckley" on Justia Law

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This case concerned a dispute over the paving of a parking lot located on park land leased to a restaurant. A formal agreement between the restaurant and a community organization restricted the paving of the property, and the restriction was incorporated in administrative zoning orders. Still, the lot was paved. Baltimore County was, in this case, landlord of the property, code enforcer, and final administrative adjudicator of disputes arising under local land use laws. As administrative adjudicator, the County forbade the paving. As landlord, the County directed its tenant, Oregon, LLC, to pave the lot. As code enforcer, it refrained from taking action in response to the apparent violation of a final administrative order issued by the Board of Appeals. Plaintiffs brought suit against the County and Oregon seeking declaratory and mandamus relief. The circuit court ruled against Plaintiffs. The court of special appeals affirmed, concluding that Plaintiffs had failed to exhaust administrative remedies. The Court of Appeals largely affirmed, albeit on different grounds, holding (1) Plaintiffs need not initiate an administrative proceeding to pursue enforcement of the Board’s orders; (2) the circuit court properly granted summary judgment with respect to the mandamus counts of the complaint; and (3) the circuit court has authority to issue a declaratory judgment as to whether the Board’s orders were violated. Remanded. View "Falls Road Cmty. Ass’n, Inc. v. Baltimore County" on Justia Law

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A holding company, whose subsidiaries owned power-generating facilities, filed a complaint against multiple insurers regarding the terms of liability policies the company purchased in the 1970s and 1980s. At issue in this case was whether New York or Pennsylvania law applied to the interpretation of the policies. The circuit court granted summary judgment in favor of the holding company, determining that Pennsylvania law governed the interpretation of the policies. One of the insurers, TIG Insurance Company (“TIG”), appealed. The court of special appeals affirmed, concluding that there was no genuine dispute of material fact that the insurance contracts were made in Pennsylvania, and therefore, Pennsylvania law applied to the policies at issue. The Court of Appeals affirmed and adopted the opinion of the court of special appeals with the exception of the court’s discussion addressing TIG’s argument that the place of countersigning a policy determines the applicable state law because that argument was not preserved for appeal. View "TIG Ins. Co. v. Monongahela Power Co." on Justia Law

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Wife and Husband married in 2003. In 2005 and 2008, Wife and Husband executed marital settlement agreements. In 2009, Husband filed a complaint for divorce, alleging that the separation agreements were voidable at his demand. In support of his demand, Husband argued that the attorney, who earlier assisted the Wife in obtaining permanent resident status and in the United States and largely served as scrivener to the settlement agreements, violated the Maryland Lawyers’ Rules of Professional Conduct by failing to obtain Husband’s informed consent to her representation of Wife in connection with the two settlement agreements. The circuit court held that the separation agreements were not voidable and entered a judgment of absolute divorce in which the separation agreements were incorporated. The intermediate appellate court affirmed. The Court of Appeals affirmed, holding that sufficient grounds to render the agreements voidable were not present in this case. View "Li v. Lee" on Justia Law

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Respondents filed a complaint for accounting against Petitioner, their employer, after a dispute over the terms of their employment agreement. In response, Petitioner filed a petition to compel arbitration, asserting that, because Respondents’ claims arose out of their employment agreements, the circuit court was required to compel arbitration under an arbitration clause contained in the employment agreement. The circuit court denied Petitioner’s petition. The intermediate appellate court dismissed Petitioner's appeal, concluding that the denial of Petitioner’s motion to compel arbitration did not constitute a final judgment. The Supreme Court affirmed, holding that an order denying a request to compel arbitration filed in an existing action is not a final judgment because the denial of the petition does not put the parties out of court or otherwise terminate the proceedings and does not deny the party requesting arbitration the means of further prosecuting or defending rights and interests in the subject matter of the proceeding. View "Am. Bank Holdings, Inc. v. Kavanaugh" on Justia Law

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Defendant was assigned the serving rights to Plaintiff's mortgage on a piece of property. Plaintiff sued Defendant, claiming that Defendant attempted to collect more than was due on the loan. The parties settled. Plaintiff then filed this action against Defendant, alleging breach of the settlement agreement, defamation, and violations of the Maryland Consumer Debt Collection Act and the Maryland Consumer Protection Act. An order of default was later entered against Defendant. Defendant subsequently filed a motion for a new trial or to alter or amend the judgment, requesting that the default judgments be set aside because Plaintiff's claims were legally deficient. The trial court denied the motion. The court of special appeals affirmed. The Court of Appeals affirmed, holding that a defaulting party who does not file a motion to vacate the order of default after a default judgment has been entered cannot file a Maryland Rule 2-534 motion to alter or amend a judgment to contest liability, and the defaulting party cannot appeal that judgment in order to contest liability. View "Franklin Credit Mgmt. Corp. v. Nefflen" on Justia Law

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A county-owned police patrol vehicle was damaged in a single-car collision while Respondent, a county police officer, operated the vehicle under the influence of alcohol. The County, a self-insured entity, filed a complaint against Respondent seeking to recover the cost of repairs to the vehicle. The district court ruled that the County could recover damages against Respondent based on an exclusion in the self-insurance guarantee purportedly excluding or disclaiming all insurance coverage on the basis that Respondent operated his vehicle under the influence of alcohol. The circuit court reversed. The Supreme Court affirmed, holding (1) Maryland's compulsory motor vehicle insurance scheme does not permit a self-insurer such as the County to disclaim or exclude insurance coverage in a self-insurance guarantee where an individual causes a collision while driving under the influence of alcohol; and (2) the exclusion in the guarantee in this case was invalid because it violated the state compulsory motor vehicle insurance scheme, was not expressly authorized by the General Assembly, and was against public policy. View "Montgomery Co. v. Distel" on Justia Law

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BJ's Wholesale Club, Inc., a commercial wholesale retail center, offered a free supervised play area called the "Incredible Kids' Club" for children to use while their parents shopped. To use the Kids' Club, BJ's required parents to sign an agreement containing an exculpatory clause and an indemnification clause. Russell Rosen executed the agreement on behalf of his three minor children. Rosen's son, Ephraim, was allegedly injured in the Kids' Club. Rosen and his wife (the Rosens) filed a negligence action against BJ's, and BJ's filed a counterclaim against the Rosens alleging breach of contract for failing to indemnify, defend, and hold BJ's harmless pursuant to the indemnification clause. The circuit court granted summary judgment for BJ's. The court of special appeals struck down the exculpation and indemnification clauses and reversed. The Court of Appeals reversed, holding that the court of special appeals erred by invoking the State's parens patriae authority to invalidate the exculpatory clause in the Kids' Club agreement. Remanded. View "BJ's Wholesale Club v. Rosen" on Justia Law

Posted in: Contracts, Injury Law
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After Petitioner sold certain properties, he used the proceeds to purchase fractional interests in commercial office buildings. The fractional interests were called Tenants in Common Interests (TICs), and each of the TICs was promoted by a company called DBSI, Inc. DBSI later filed a petition for bankruptcy, and the properties underlying Petitioner's TICs became the subject of foreclosure proceedings. The bankruptcy court determined that many of DBSI's transactions were fraudulent. Petitioner filed a complaint against Cassidy Turley Maryland (Defendant), under whose advice Petitioner acted in purchasing the TICs, alleging that Defendant failed to disclose material facts regarding the investment. The circuit court granted summary judgment for Defendant. The Court of Appeals affirmed in part and reversed in part, holding (1) Petitioner's investment in this case was a "security" for purposes of the Maryland Securities Act; (2) the circuit court erred in determining that Petitioner's claims under the Act relating to fraud and misrepresentation by Defendant were barred by limitations; (3) the court erred in concluding that Petitioner's common law tort claims were time-barred as a matter of law; and (4) the court did not err in deciding to reserve judgment on the admissibility of a bankruptcy examiner's report until it had further information. View "Mathews v. Cassidy Turley Md., Inc." on Justia Law

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Petitioner was appointed the Police Commissioner of Baltimore City by the Mayor. Petitioner and the Mayor entered into a memorandum of understanding (MOU) that addressed the terms and conditions of Petitioner's employment, including his removal as Commissioner. The Mayor and City Council (Respondents) later relieved Petitioner of his command. Petitioner filed an amended complaint against Respondents seeking reinstatement and money damages. The circuit court granted summary judgment to Respondents. The intermediate appellate court reversed, holding that the Mayor did not have the authority to remove a Police Commissioner pursuant to a contract providing for removal without cause, and therefore, the removal provisions of the MOU were invalid. The Court of Appeals affirmed. Petitioner subsequently filed a motion for writ of mandamus or motion for injunction or reinstatement. The circuit court denied the motion and granted summary judgment to Respondents. The court of special appeals affirmed. The Court of Appeals affirmed, holding (1) because this Court did not decide the merits of Petitioner's claims for reinstatement and monetary damages, Petitioner was not entitled to reinstatement or judgment as a matter of law; and (2) the court of special appeals did not err in granting Respondents' summary judgment motion and denying Petitioner's motion for partial summary judgment. View "Clark v. O'Malley" on Justia Law