Centre Insurance v. J.T.W.

916 A.2d 235, 397 Md. 71, 2007 Md. LEXIS 4
Court of Appeals of Maryland·Decided January 9, 2007·No. 52, 56, September Term, 2006·Published·Cited by 13 cases

Opinion

CATHELL, J.

This opinion addresses two cases before the Court which present a virtually identical issue. 1 The question to be re *73 solved is: When, under Title 2 of Maryland’s Insurance Article, 2 does the 30-day filing period for a petition for judicial review of an administrative decision begin? 3 Centre Insurance Company, Inc., Z.C. Insurance Agency, Inc., and the Maryland Insurance Commissioner 4 (“Commissioner”) 5 argue that the plain language of the Insurance Article provides that the 30-day period begins when the order resulting from an administrative hearing is mailed. J.T.W. 6 argues that the 30-day period begins when the order resulting from an administrative hearing is received by the affected party. We hold that the plain language of the pertinent statutes provides that, in the context of the relevant sections of the Insurance Article, the 30-day filing period for a petition for judicial review of an administrative decision under §§ 2-204(c) and 2—215(d)(1) begins when the order resulting from a relevant administrative hearing is mailed.

*74 I. Facts

This case arises out of the unfortunate occurrence of a tornado, which touched down in La Plata, Maryland on April 28, 2002. The tornado destroyed J.T.W.’s home and personal property. In response to this incident, J.T.W. filed several claims with his homeowner’s insurance carrier and agent, respectively: Centre Insurance Company, Inc. and Z.C. Sterling Insurance Agency, Inc. J.T.W. received some benefits under his homeowner’s insurance policy, but was not satisfied with the companies’ response as a whole. As a result, J.T.W. filed administrative complaints with the Maryland Insurance Administration (“MIA”) charging that Centre violated the Insurance Article by the manner in which it handled his claims.

No. 52

In October 2002, J.T.W. filed a complaint with the MIA, asserting that Centre violated Maryland law by the manner in which it handled his claims (in particular, the fact that some of his claims were denied). In January 2003, the MIA notified J.T.W. that it had failed to find any violations by Centre of the Maryland Insurance Article. J.T.W. then sought review of the MIA’s decision. The parties entered into mediation before an Administrative Law Judge (“ALJ”). As a result of the mediation, on June 11, 2003, the parties entered into a settlement agreement.

In October 2003 and February 2004, J.T.W. filed additional complaints with the MIA, asserting that Centre had failed to cover his claimed losses and had failed to comply with the settlement agreement. The MIA notified J.T.W. in January and May 2004, respectively, that it had again failed to find any violations by Centre. J.T.W. requested administrative hearings in both instances. The claims were consolidated and referred to the Office of Administrative Hearings (“OAH”). 7 *75 On July 28 and 29, 2004, the OAH held a hearing. On September 27, 2004, the ALJ issued an order and decision, upholding in part and denying in part J.T.W.’s complaint.

The order was mailed to the parties on October 14, 2004. 8 It is uncontroverted that J.T.W. did not receive the order until October 20, 2004. On November 19, 2004, J.T.W. filed a petition for judicial review in the Circuit Court for Charles County. Centre then filed a motion to dismiss J.T.W.’s petition. Centre argued that, pursuant to Maryland Code (1995, 2003 Repl.Vol.), § 2-215(d) of the Insurance Article, a petition for judicial review must be filed within 30 days after such a petitioner for judicial review is served with the order, 9 and that Maryland Code (1995, 2003 ReplVol.), § 2-204(c) of the Insurance Article defines service as the mailing of an order. Therefore, Centre argued that J.T.W. filed his petition in an untimely manner, 36 days after the order had been mailed (October 14, 2004-November 19, 2004). J.T.W. asserted, conversely, that the operative date for service was his receipt of the order. That occurred on October 20, 2004, which would *76 mean that he filed his petition within the required 30-day period. The Circuit Court found in favor of Centre, holding that service was effective upon mailing. On April 20, 2005, the Circuit Court filed an order dismissing J.T.W.’s appeal of the administrative order.

J.T.W. then timely appealed to the Court of Special Appeals. On April 28, 2006, the intermediate appellate court filed its opinion, reversing the Circuit Court’s decision. J.T.W. v. Centre Ins. Co., 168 Md.App. 492, 897 A.2d 288 (2006). The court agreed with J.T.W.’s argument that, under Maryland Rule 7-203(a)(3), 10 the 30-day time limit for filing a petition for judicial review began to run on the date that he received the ALJ’s order and decision. J. T.W., 168 Md.App. at 497, 897 A.2d at 291. The court referenced § 2-215(d) of the Insurance Article, finding that “J.T.W. was required to file a petition for judicial review within thirty days following service of the order resulting from the hearing.” J.T.W., 168 Md.App. at 497, 897 A.2d at 292. Additionally, the intermediate appellate court cited to Rockwood Casualty Insurance Co. v. Uninsured Employers’ Fund, 385 Md. 99, 867 A.2d 1026 (2005), in support of the premise that “the term ‘serve’ implies actual receipt.” J.T.W., 168 Md.App. at 497, 897 A.2d at 292. The court concluded, stating:

“The requirement that a petition for judicial review be filed within thirty days after the order Vas served on the persons entitled to receive it,’ implies that the party must have actually received the order. Ins. § 2-215(d)(l). Consequently, ‘notice [is] required by law to be received by the petitioner,’ and the thirty day limit begins to run ‘the date *77 the petitioner receive[s] notice of the agency’s order or action.’ Md. Rule 7-203(a)(3).”

J.T.W., 168 Md.App. at 498, 897 A.2d at 292. The intermediate appellate court only briefly referenced § 2-204(c) of the Insurance Article (which defines “service”) and did not address any impact that it would have upon the court’s interpretation of § 2-215(d)(l) of the Insurance Article.

Centre timely filed a petition for certiorari, which this Court granted on August 29, 2006. Centre Ins. v. J.T.W., 394 Md. 307,

Centre Insurance v. J.T.W., 916 A.2d 235, 397 Md. 71, 2007 Md. LEXIS 4 (Md. 2007).

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