County Council v. Investors Funding Corp.

312 A.2d 225, 270 Md. 403, 1973 Md. LEXIS 697
Court of Appeals of Maryland·Decided December 4, 1973·No. [No. 282, September Term, 1972.]·Published·Cited by 98 cases

Opinions

[406] Murphy, C. J.,

delivered the opinion of the Court. Barnes and Smith, JJ., concur in part and dissent in part and Barnes, J., filed an opinion concurring in part and dissenting in part in which Smith, J., concurs at page 446 infra.

This appeal draws into question the legality of Chapter 93A of the Montgomery County Code (1965, as amended), entitled “Fair Landlord-Tenant Relations.” * Enacted as Bill 19-71 by the County Council for Montgomery County (the Council) on June 13, 1972, Chapter 93A (the Act) undertakes in four separate articles to comprehensively regulate the apartment rental business and its concomitant landlord-tenant relationships and activities in Montgomery County. Investors Funding Corporation, together with a number of other corporations and individuals engaged in the business of renting dwelling units in Montgomery County (the landlords), sought a declaratory decree in the Circuit Court for Montgomery County that the Act was null, void and of no effect because in a number of designated particulars, it violated the state and federal constitutions, and was otherwise beyond the power of the Council to enact. The court (Moore, J.) concluded in an extensive oral opinion that while the Council possessed the basic power under the County’s Home Rule Charter to enact Chapter 93A, various of its provisions were illegal, unconstitutional or otherwise nugatory as being in conflict with the public general laws of the State. From a decree so declaring, both the landlords and the Council appealed.

In enacting Chapter 93A, the Council made a number of “Legislative Findings” which it set forth in § 93A-1 of Article I of the Act, viz., that: “there is often unequal bargaining power between landlords and tenants; that the common law principles pursuant to which leases are interpreted as grants of right of possession rather than mutual and dependent covenants evolved in an agricultural setting and are ill-suited to the modern residential setting of [407] this urban County; that in order to facilitate fair and equitable arrangements, foster the development of housing which will meet the minimum standards of the present day, and promote the health, safety and welfare of the people, it is necessary and appropriate that the County provide a commission and office to determine certain minimum rights and remedies, obligations and prohibitions, for landlords and tenants of certain kinds of residential property.” The underlying “purposes and policies” of the Act are set forth in § 93A-2(b):

“(i) to simplify and clarify the law governing the rental of dwelling units;
(ii) to encourage landlords and tenants to maintain and improve the quality of housing in this County;
(iii) to assure fair and equitable relations between landlords and tenants; and
(iv) to revise and modernize the law of landlord and tenant to serve more realistically the needs of an urban society developing within Montgomery County, Maryland.”

Section 93A-3 provides that, subject to the public general laws of the State, the Act “shall regulate and determine legal rights, remedies and obligations of the parties and beneficiaries of any rental agreement, concerning any multi-family structure containing two or more rental dwelling units within this County wherever executed.”

The Office of Landlord-Tenant Affairs is created by § 93A-6 of Article II of the Act and placed under the immediate supervision of an Executive Director; the Office is designated as a principal office of the executive branch of the Montgomery County government, and is vested with primary authority for implementing the Act’s provisions. The Executive Director is empowered by § 93A-7 “to initiate, investigate and conciliate any violations of this Chapter or any complaints filed hereunder, and to investigate, grant, [408] deny, revoke, suspend, refuse or renew licenses hereunder.” A Commission on Landlord-Tenant Affairs is created by § 93A-8 of Article II; it is comprised of nine members appointed by the County Executive, three of whom are to be selected from nominations made by organizations representing landlords; three from nominations made by organizations representing tenants; and three members of the public at large who are neither tenants nor landlords. The Commission’s powers are delineated in § 93A-9; among them is the power to enforce the provisions of the Act “through any appropriate means; including but not limited to . . . (ii) the imposition of a civil penalty, not in excess of $1,000, for the violation of any provision of this Chapter, (iii) the imposition of an award of money damages against a landlord or tenant for the benefit of either as may be provided for in this Chapter, (iv) the ordering of repairs by a landlord or tenant, and (v) the investigation and conciliation of any violations of this Chapter or any complaints filed hereunder and the investigation of any matter relating to any license to conduct or operate a rental facility.”

Article III of the Act, entitled “Licensing of Rental Facilities,” provides in § 93A-16 that after the Act’s effective date (September 19,1972), “it shall be unlawful to conduct or operate within Montgomery County a rental facility without having first applied for or obtained a license to operate or conduct said rental facility . ...” 1 Failure to comply with the licensing requirements is declared a misdemeanor by § 93A-17, punishable by a fine not to exceed $1,000 and costs for each offense. Landlords of rental facilities are required by § 93A-18 to apply to the Office of Landlord-Tenant Affairs for licenses within twenty days after the Act’s effective date. Provision is made for the issuance of temporary and conditional licenses pending inspection of [409] rental facilities and compliance with all applicable laws; and the Executive Director is vested with authority to determine whether the rental facility for which licensure is sought conforms with the governing law. Section 93A-19 provides that an annual license fee per dwelling unit shall be established by the County Executive by written regulation “in an amount sufficient to pay the costs incidental to the administration of this Chapter and to make this Chapter self-sustaining.” Section 93A-21 authorizes the Executive Director to cause biennial inspections to be made of licensed rental facilities to determine whether they comply with all applicable laws; if the rental facility fails so to comply, the license “may be subject to revocation or other remedial action as determined by the Executive Director.” Section 93A-24 authorizes the Executive Director to revoke, deny or suspend licenses for failure to eliminate violations of applicable laws; persons aggrieved by the action of the Executive Director may file an appeal to the Commission which is required “by order, [to] either reverse, modify or affirm the action appealed and shall issue its findings, opinion, and order in writing and provide a copy thereof to the person aggrieved.” The Commission’s “final action” is appealable to the Circuit Court for Montgomery County. § 93A-25.

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County Council v. Investors Funding Corp., 312 A.2d 225, 270 Md. 403, 1973 Md. LEXIS 697 (Md. 1973).

312 A.2d 225 (County Council v. Investors Funding Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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