Barnhill v. A&M Homebuyers, Inc.

CourtDistrict Court, D. Maryland
DecidedAugust 22, 2022
Docket8:19-cv-02299
StatusUnknown

This text of Barnhill v. A&M Homebuyers, Inc. (Barnhill v. A&M Homebuyers, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barnhill v. A&M Homebuyers, Inc., (D. Md. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND Southern Division

* AMANDA BARNHILL, et al., * Plaintiffs, * v. Case No.: PWG 19-2299 * A&M HOMEBUYERS, INC., et al., * Defendants. * * * * * * * * * * * * * * * MEMORANDUM OPINION Plaintiffs, Amanda Barnhill and her father, William Barnhill, by counsel, filed this lawsuit against Defendants, A&M Homebuyers, Inc. and Mark Collins, on July 16, 2019, in the Circuit Court of Prince George’s County, Maryland. Compl., ECF No. 1-2. Plaintiffs allege breach of contract, intentional and negligent misrepresentation and concealment, and violation of the Maryland Consumer Protection Act (“MCPA”), Md. Code Ann., Com. Law Art., §§ 13-301 et seq., in connection with their purchase from Defendants of the property located at 13100 Rhame Drive, Ft. Washington, Maryland (the “Property”). Defendants removed the case to this Court on August 9, 2019 pursuant to 28 U.S.C. § 1332(a).1 Not. Removal, ECF No. 1. Pending before me are Plaintiffs’ Motion for Summary Judgment on Counts I and IV and Motion to Partially Strike Expert Designation, ECF No. 19, and Defendants’ Cross-Motion for Summary Judgment and Motion to Strike the Testimony of Plaintiff’s [sic] Expert Anthony Rankine, ECF No. 20. I have

1 Defendants assert diversity of citizenship because the Barnhills are citizens of Maryland, and Defendants are citizens of Virginia. Not. Removal ¶¶ 2, 4-6, ECF No. 1. The amount in controversy exceeds $75,000. Id. ¶ 7. reviewed all the filings2 and find a hearing unnecessary. See Loc. R. 105.6 (D. Md. 2021). For the reasons stated below, Plaintiffs’ motion is DENIED, and Defendants’ motion is GRANTED IN PART and DENIED IN PART. Defendants shall be granted summary judgment on all causes of action, but the motion to strike expert testimony is denied as moot. BACKGROUND

Defendant, Mark Collins, is the owner and president of Defendant A&M Homebuyers, Inc. (“A&M”). Collins Dep. 10:14-19, Pls.’ Ex. 3, ECF No. 19-5. A&M purchases residential properties to renovate for resale. Id. at 12:8-19. The renovations are performed by subcontractors. Id. at 20:14-21:2; 32:1:3. In the spring of 2017, A&M purchased the Property located at 13100 Rhame Drive, Ft. Washington, Maryland after being contacted by a real estate agent, Juan Carlos Ona, who provided an estimate of $54,525 for upgrading the Property. Id. at 29:14-30:22; 37:19- 38:2; Estimate, Pls.’ Ex. 7, ECF No. 19-9. The estimate had been prepared by a contractor, H&M Servat Construction LLC (“H&M”) for Mr. Ona, and A&M hired H&M as the general contractor to upgrade the Property prior to selling it. Collins Dep. 39:13-15; Estimate; Contractor Agmt.,

Defs.’ Ex. 8 at 5-6, ECF No. 20-10. Mr. Ona oversaw the construction, which went overbudget. Collins Dep. 29:18-30:6; 65:17-663; 69:21-70:12. The Property was then offered for sale, and the Barnhills made an offer through their real estate agent in October 2017. Residential Contract, ECF No. 1-3. The Barnhills’ realtor arranged for the Property to be formally inspected on November 3, 2017. Property Inspection Report, Defs.’ Ex. 4, ECF No. 20-6; A. Barnhill Dep. 60:1-61:4, Defs.’ Ex. 2, ECF No. 20-4. After Ms. Barnhill reviewed the report, an inspection addendum was added

2 Pls.’ Mot., ECF No. 19; Defs.’ Resp. & Cross-Mot., ECF No. 20; Pls.’ Resp. & Reply, ECF No. 21, Defs.’ Reply, ECF No. 22, and all the attached exhibits. to the contract. A. Barnhill Dep. 63:2-6; 64:12-18; Property Inspection Notice, Defs.’ Ex. 5, ECF No. 20-7. The Barnhills provided a list of unsatisfactory conditions that had been identified in the inspection, and A&M agreed to take corrective actions. Property Inspection Notice §§ 2-3. The agreed upon repairs were completed to Ms. Barnhill’s satisfaction prior to final settlement on November 2, 2017. A. Barnhill Dep. 73:7-74:7; 76:14-18. Other than the agreed repairs, the

Property was sold in “as is” condition. Residential Contract 5, 26-31; Property Disclosure Statement, Defs.’ Ex. 6, ECF No. 20-8. A couple of months after the purchase of the Property was complete, Ms. Barnhill noted an electrical malfunction causing her bedroom light to flicker when the bathroom fan was turned on. A. Barnhill Dep. 39:5-46:8. The problem was repaired by the Barnhills’ home warranty firm, and no further electrical issues have been identified or repaired. Id. Additionally, Ms. Barnhill testified that a pipe burst in the basement, which caused damage to the walls and carpet. Id. at 46:13-22. The repairs were performed by Ms. Barnhill’s contractor, and there have been no other plumbing issues identified. Id. at 47:8-50-9. However, Plaintiffs allege that Defendants were

aware of latent defects, specifically, a lack of permitting during the renovation project and electrical and plumbing deficiencies, which were concealed from Plaintiffs and represent a material characteristic of the Property they purchased. Compl. ¶¶ 27-30.3 The Barnhills assert that the unpermitted construction poses a direct threat to their health and safety and will cause them to incur at least $200,000 to repair or replace the non-code compliant conditions. Id. ¶¶ 32-35.4 Plaintiffs filed this lawsuit asserting the following causes of action:

3 Ms. Barnhill testified that the basis of Plaintiffs’ claim is that there were no permits, and the electrical and plumbing work was done incorrectly. A. Barnhill Dep. 32:21-33:18. She explained that her understanding of the defects are from her contractor. Id. at 37:19-21. 4 An estimate was provided by Ms. Barnhill’s contractor for $165,000 to complete an entire renovation. Pls.’ Estimate Repairs, ECF No. 19-12. • Count I – Breach of Contract • Count II – Intentional Misrepresentation / Concealment • Count III – Negligent Misrepresentation / Concealment • Count IV – Violation of the Maryland Consumer Protection Act (“MCPA”) The parties have filed cross-motions for summary judgment. Plaintiffs acknowledge that the full amount of damages is in dispute but contend that the fact they incurred some degree of

damage due to the lack of permitting and associated inspections is not in dispute. Pls.’ Mot. Mem. 2, ECF No. 19-1. Plaintiffs assert that they are entitled to summary judgment for at least the undisputed damages of $14,065.25—the amount that Defendants’ expert opined was required to bring the Property into compliance—plus reasonable attorneys’ fees, and request that the disputed damages be presented at trial. Id. at 3. Plaintiffs also seek summary judgment in their favor on the MCPA and breach of contract claim. Id. at 7, 10. Defendants respond that performance of work with or without permits does not constitute a “latent defect” for purposes of Maryland Residential Disclosure law, and summary judgment in Defendants’ favor is warranted. Defs.’ Mot. Mem. 23. Further, both parties seek to strike testimony of the opposing parties’ expert witness. STANDARD OF REVIEW

Federal Rule of Civil Procedure 56(a) provides for the judgment in favor of the movant “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” In reviewing the evidence related to a motion for summary judgment, the Court considers undisputed facts, as well as the disputed facts viewed in the light most favorable to the non-moving party. Ricci v. DeStefano, 557 U.S. 557, 586 (2009); George & Co., LLC v. Imagination Entm’t Ltd., 575 F.3d 383, 391–92 (4th Cir. 2009); Dean v. Martinez,

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Barnhill v. A&M Homebuyers, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnhill-v-am-homebuyers-inc-mdd-2022.