Burch v. United Cable Television of Baltimore Ltd. Partnership

895 A.2d 980, 391 Md. 687, 2006 Md. LEXIS 169
CourtCourt of Appeals of Maryland
DecidedApril 7, 2006
Docket62, Sept. Term, 2003
StatusPublished
Cited by24 cases

This text of 895 A.2d 980 (Burch v. United Cable Television of Baltimore Ltd. Partnership) 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
Burch v. United Cable Television of Baltimore Ltd. Partnership, 895 A.2d 980, 391 Md. 687, 2006 Md. LEXIS 169 (Md. 2006).

Opinion

ELDRIDGE, J.

I.

This case has a long history, having come before this Court on two prior occasions. See Dua v. Comcast Cable of Maryland, 370 Md. 604, 805 A.2d 1061 (2002); United Cable v. Burch, 354 Md. 658, 732 A.2d 887 (1999) (“Burch I ”). Although a detailed factual and procedural history can be found in those cases, it would be useful to provide a brief summary here.

The case originated in 1995 as a class action suit brought by consumer television cable subscribers against their cable television provider, United Cable Television of Baltimore, L.P., now Comcast Cable, challenging the five dollar per month late fee that was being charged for cable bills that were not paid by the date set forth on the face of the bills. The subscribers alleged that the five dollar late fee was an illegal penalty and not a valid liquidated damages provision, and that, under Article III, § 57, of the Maryland Constitution, such late fees could not be charged in excess of six percent per annum without authorization from the General Assembly. 1 The Circuit Court for Baltimore City agreed. The court enjoined United Cable from collecting late fees in excess of $.50 per month after September 20, 1997, and entered a judgment in the amount of $6,701,50.60 against United Cable, which represented the late fees paid in excess of the limit from 1992 *691 through 1997. 2 United Cable appealed to the Court of Special Appeals, and this Court issued a writ of certiorari prior to any proceedings in the Court of Special Appeals. We held that United Cable could only charge the rate of interest allowed under Article III, § 57, of the Maryland Constitution, unless the General Assembly provided otherwise. Burch I, 354 Md. at 669, 732 A.2d at 893. At the time of the decision, the General Assembly had not enacted any legislation altering the interest rate which could be charged by cable television providers. Accordingly, under Article III, § 57, of the Constitution, the maximum late fee which could be charged by cable television providers was six percent per annum. See Dua v. Comcast, supra, 370 Md. at 611-613, 805 A.2d at 1066-1067.

In response to this Court’s decision in Burch I, the General Assembly enacted Ch. 59 of the Acts of 2000, codified as Maryland Code (2000, 2002 Repl.Vol.), § 14-1315 of the Commercial Law Article, which became effective on October 1, 2000. The new statute increased the maximum allowable late fees that could be collected on consumer contracts involving the “sale, lease, or provision of goods or services which are for personal, family, or household purposes.” The statute also contained a retroactive provision which purported to validate the late fees charged in excess of the constitutional limit on contracts entered into between November 1995 and October 1, 2000. See Ch. 59 of the Acts of 2000, § 5.

The retroactive provision of the statute, contained in § 5 of Ch. 59, was challenged in several actions by consumer subscribers of cable television against Comcast Cable of Maryland, Inc., the successor to United Cable. The suits had been brought in both the Circuit Court for Baltimore County and the Circuit Court for Harford County. The plaintiffs in those cases sought to recover the monthly late fees paid to Comcast in excess of the six percent per annum fee allowed under *692 Article III, § 57, of the Maryland Constitution. The cases were later consolidated in the Circuit Court for Baltimore County. Comcast moved to dismiss the actions on the ground that the retroactive provision in Ch. 59, § 5, validated the late fees which had exceeded the constitutional limit. The plaintiffs responded by arguing that the retroactive provision contained in § 5 of Ch. 59 violated their rights under both the federal and state constitutions. After a hearing on the matter, the Circuit Court granted Comcast’s motion to dismiss, rejecting the plaintiffs constitutional arguments, and holding that the retroactive provision was valid. See Dua, 370 Md. at 614, 805 A.2d at 1067. The plaintiffs appealed to the Court of Special Appeals, and then filed in this Court a petition for a writ of certiorari which was granted. Thereafter, this Court reversed, holding that the retroactive provision contained in the statute violated Articles 19 and 24 of the Maryland Declaration of Rights and Article III, § 40, of the Maryland Constitution, and that, therefore, the retroactive provision was unenforceable. Dua v. Comcast, 370 Md. 604, 805 A.2d 1061. There was no challenge in that case to the prospective application of Ch. 59.

In September 2001, while the Dua case was pending in this Court, and in response to the enactment of Ch. 59, United Cable filed a motion in the Circuit Court for Baltimore City, requesting that the court vacate the permanent injunction entered in 1997, which continued to prohibit United Cable from collecting late fees in excess of $.50 per month. In its motion, United Cable argued that Ch. 59 substantially changed the law, and it requested the Circuit Court to vacate the permanent injunction so that United Cable could prospectively collect late fees in accordance with the new statutory provisions.

The Burch class of plaintiffs responded by requesting the court to abstain from vacating the permanent injunction until the Baltimore City Council had an opportunity to vote on a proposal which would have restricted cable television providers within the City limits from charging late fees in excess of $.50 per month. They also argued that, even if Baltimore *693 City’s proposal was not enacted, the new law did not apply to the members of the Burch class of plaintiffs because the General Assembly intended to exempt that class. According to the plaintiffs, the exemption was contained in § 6 of Ch. 59, which provided that the new law would not apply to “any case for which a final judgment has been rendered and for which appeals have been exhausted prior to June 1, 2000.” The plaintiffs further argued that, under § 4 of Ch. 59, the Circuit Court had jurisdiction to limit the late fees because the court qualified as a “federal, state, or local regulatory agency or authority,” which was allowed under the statute to impose additional conditions or limitation on late fees. The plaintiffs asserted that the injunction constituted a valid regulation of late fees in Baltimore City.

Following a hearing on the matter, the Circuit Court granted United Cable’s motion to vacate the permanent injunction, thereby allowing the cable company to collect future late fees in accordance with Ch. 59. The plaintiffs appealed to the Court of Special Appeals, which affirmed in an unreported opinion. The plaintiffs then filed in this Court a petition for a writ of certiorari which we granted. Burch v. United Cable, 377 Md. 111, 832 A.2d 204 (2003).

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Bluebook (online)
895 A.2d 980, 391 Md. 687, 2006 Md. LEXIS 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burch-v-united-cable-television-of-baltimore-ltd-partnership-md-2006.