Ben-Davies & Moore v. Blibaum & Assoc.

177 A.3d 681, 457 Md. 228
CourtCourt of Appeals of Maryland
DecidedJanuary 19, 2018
Docket4m/17
StatusPublished
Cited by19 cases

This text of 177 A.3d 681 (Ben-Davies & Moore v. Blibaum & Assoc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ben-Davies & Moore v. Blibaum & Assoc., 177 A.3d 681, 457 Md. 228 (Md. 2018).

Opinion

Barbera, C.J., Greene, Adkins, McDonald, Watts, Hotten, Getty, JJ.

Watts, J.

After a trial court enters judgment in a plaintiff's favor against a defendant, the plaintiff is entitled to post-judgment interest until the defendant satisfies the judgment. See Med. Mut. Liab. Ins. Soc'y of Md. v. Davis , 389 Md. 95 , 109, 883 A.2d 158 , 166 (2005) ("Post-judgment interest begins to run on a money judgment from the date of the entry of that judgment.... Post-judgment interest continues to accrue until the judgment is satisfied by payment." (Citations omitted)). The purpose of post-judgment interest is "to compensate the successful [plaintiff] for the [ ] loss of the use of the monies [that are] represented by a judgment in [the plaintiff's] favor, and the loss of income thereon, between the time of entry of the judgment ... and the satisfaction of the judgment by payment."

Id. at 109 , 883 A.2d at 166 (citations and internal quotation marks omitted).

Under Md. Code Ann., Cts. & Jud. Proc. (1974, 2013 Repl. Vol.) ("CJ") § 11-107, different post-judgment interest rates apply to different types of judgments. Generally, under CJ § 11-107(a), except as provided otherwise, a post-judgment interest rate of 10% applies to all judgments. Meanwhile, under CJ § 11-107(b), a post-judgment interest rate of 6% applies to "money judgment[s] for rent of residential premises[.]"

This opinion consolidates two cases that require us to determine which of these two post-judgment interest rates applies where: a landlord sues a tenant for breach of contract based on a residential lease; the trial court enters judgment in the landlord's favor against the tenant; the judgment includes unpaid rent and other expenses; and the judgment does not delineate what portion thereof was comprised of unpaid rent, as opposed to the other expenses-such as late fees or the cost of repairs to the premises.

In separate matters, Amber Ben-Davies and Bryione K. Moore (together, "Appellants") failed to pay rent. After Appellants vacated their apartments, their respective landlords initiated separate actions for breach of contract. The District Court of Maryland, sitting in Baltimore County ("the District Court"), entered judgments in the landlords' favor against Appellants. The judgments did not delineate the portions thereof that were comprised of unpaid rent, as opposed to other expenses. Ben-Davies's landlord had sought the cost of replacing carpet in her apartment, and Moore's landlord had sought the costs of utilities, changing the apartment's lock, trash disposal, cleaning stained carpet, advertising, and various fees.

Samuel Blibaum ("Samuel") and Gary S. Blibaum ("Gary") of Blibaum & Associates, P.A. ("Appellee"), a licensed debt collector, represented the landlords in the actions for breach of contract. After the District Court entered the judgments, Appellee engaged in collections activity on the landlords' behalf.

On Appellee's behalf, Gary sent Ben-Davies a letter in which he stated that she owed her landlord a certain amount. Appellee obtained a writ of garnishment of Moore's wages, and sent her a Judgment Creditor's Monthly Report. In both the letter that was sent to Ben-Davies, and the Judgment Creditor's Monthly Report that was sent to Moore, Appellee indicated that the applicable post-judgment interest rate was 10%. In other words, Appellee sought to apply the post-judgment interest rate of 10% under CJ § 11-107(a), which applies to all judgments unless provided otherwise.

In the United States District Court for the District of Maryland ("the U.S. District Court"), Appellants filed separate complaints against Appellee. In the complaints, Appellants contended that, contrary to Appellee's position, the applicable post-judgment interest rate was 6%, not 10%. In other words, Appellants argued that CJ § 11-107(b) applied because the judgments against them constituted "money judgment[s] for rent of residential premises [.]" Appellants asserted that, by seeking to apply a post-judgment interest rate of 10%, Appellee violated the federal Fair Debt Collection Practices Act, the Maryland Consumer Debt Collection Act, and the Maryland Consumer Protection Act.

Ultimately, in each case, the parties filed a "Joint Motion to Certify a Question of Law to the Maryland Court of Appeals," requesting that the U.S. District Court certify the following question of law to this Court: 1

Is the legal rate of post-judgment interest on a judgment awarded in a breach of contract action where the underlying contract is a residential lease ten percent (10%)[,] as stated in [CJ] § 11-107(a) [,] or is it six percent (6%) [,] as stated in [CJ] § 11-107(b), which states that it is applicable to "a money judgment for rent of residential premises," where the judgment in the breach of contract action does not specifically delineate what portion, if any, of the judgment was awarded for unpaid rent?

In the joint motions to certify, the parties noted that this was an issue of first impression. The U.S. District Court granted the joint motions to certify.

Before this Court, as in the U.S. District Court, Appellants contend that the applicable post-judgment interest rate is 6% pursuant to CJ § 11-107(b). Appellee responds that the applicable post-judgment interest rate is 10% pursuant to CJ § 11-107(a).

We conclude that, where a landlord sues a tenant for breach of contract based on a residential lease, and the trial court enters judgment in the landlord's favor against the tenant and the judgment includes damages for unpaid rent and other expenses, a post-judgment interest rate of 6% applies pursuant to CJ § 11-107(b). CJ § 11-107(b) unequivocally states that it applies to "a money judgment for rent of residential premises[.]" As such, CJ § 11-107(b)'s plain language establishes that it applies where, as here, a judgment is comprised of unpaid rent and other expenses that are due as a result of a residential lease. Nothing in CJ § 11-107(b) renders it exclusively applicable to money judgments that are entirely comprised of unpaid rent. Stated otherwise, nothing in CJ § 11-107(b) indicates that, for a post-judgment interest rate of 6% to apply, a judgment must consist solely of unpaid rent, and may not include expenses that are associated with the rent of residential premises. Additionally, nothing in CJ § 11-107(b) indicates that it does not apply to actions for breach of contract between landlords and tenants. In addition to the plain language of CJ § 11-107(b), our holding is supported by CJ § 11-107(b)'s obvious purpose, which is to protect tenants by not subjecting them to a 10% post-judgment interest rate on money judgments for rent of residential premises.

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Cite This Page — Counsel Stack

Bluebook (online)
177 A.3d 681, 457 Md. 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ben-davies-moore-v-blibaum-assoc-md-2018.