D'AOUST v. Diamond

36 A.3d 941, 424 Md. 549, 2012 WL 264574, 2012 Md. LEXIS 67
CourtCourt of Appeals of Maryland
DecidedJanuary 31, 2012
Docket5, September Term, 2011
StatusPublished
Cited by86 cases

This text of 36 A.3d 941 (D'AOUST v. Diamond) 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
D'AOUST v. Diamond, 36 A.3d 941, 424 Md. 549, 2012 WL 264574, 2012 Md. LEXIS 67 (Md. 2012).

Opinions

GREENE, J.

This case stems from the judicial sale of a condominium owned by Michelle D’Aoust (Petitioner) conducted by court-appointed trustees Cindy R. Diamond and Bruce D. Brown, who were employed by the law firm of Rosen Hoover, P.A. (collectively Respondents) at the time of the sale and surrounding events in connection with the sale. Following the sale of the condominium, Petitioner filed a Complaint in the Circuit Court for Harford County alleging breach of fiduciary duty involving actual fraud and breach of fiduciary duty involving constructive fraud by Diamond and Brown in connection with the sale. The Complaint also alleged vicarious liability of Rosen Hoover, P.A. Thereafter, Respondents filed a Motion to Dismiss the Complaint, which the trial judge granted, concluding that Respondents were entitled to qualified judicial immunity for their actions in connection with the sale of Petitioner’s condominium.1 The Court of Special Appeals [561]*561reversed the trial judge’s grant of Respondents’ Motion to Dismiss with regard to Petitioner’s allegations of actual fraud, remanding the case to the trial court for further proceedings on that cause of action, and it affirmed the trial judge’s grant of the Motion to Dismiss with regard to the other causes of action in Petitioner’s Complaint on grounds of qualified judicial immunity. We granted certiorari to answer the following questions posed by Petitioner in her petition for writ of certiorari:

(1) Does the doctrine of “qualified immunity” shield trustees appointed to make a judicial sale from liability for: [ (a) ] failing to provide the property owner with a mandatory notice of the time, place and terms of the sale “to the last known address” of the record owner, as required by Maryland Rule 14 — 206(b); and/or [ (b) ] making a false affidavit that they had complied with the Rule?
(2) Are the trustees entitled to “qualified immunity” where prior to a hearing on [Petitioner’s] Exceptions to the foreclosure sale, the trustees told the [Petitioner] that the trustees were withdrawing objections to her Exceptions and would advise the court that no hearing was required because the Exceptions should be sustained; subsequently, after the hearing was cancelled at the trustees’ request, the Circuit Court summarily ratified the [sale] without a hearing, the trustees did not advise the court that the sale should not have been ratified, but instead conveyed the property to the foreclosure sale purchaser without further notice to the [Petitioner]?
(8) Is the Court of Special Appeals correct in holding that the trustees are entitled to assert the defense of qualified immunity for the ministerial act of sending out a required [562]*562Notice because such act is a “nested” ministerial act, “necessary to carry out a broader discretionary authority vested by the court?”
(4) Is the Court of Special Appeals correct in holding that “[the trustees] are shielded from liability for constructive fraud as a matter of law” because of the doctrine of “qualified immunity?”
(5) Does the doctrine of qualified immunity protect foreclosure sale trustees who negligently deprive the property owner of a hearing on exceptions to the sale?

We also granted certiorari to answer the following question posed by Respondents in their cross-petition:

Whether the Court of Special Appeals should have considered the uncontradicted affidavits submitted by the [Respondents] (in which they denied actual knowledge that the [Petitioner] was not residing in the condominium where the notice was sent), and thus should have reviewed the trial court’s Order as the granting of a motion for summary judgment, rather than the granting of a motion to dismiss since the extraneous documents were not excluded by the trial court in rendering its opinion?

For the reasons discussed more fully below, we shall affirm in part and reverse in part the judgment of the Court of Special Appeals, and we direct that court to remand the case to the trial court for further proceedings.3 We hold that the inter[563]*563mediate appellate court erred in reviewing the trial judge’s Order as a grant of a motion to dismiss, rather than as a grant of a motion for summary judgment. We also hold that the trial judge erred in granting, and the intermediate appellate court erred in affirming the grant of, Respondents’ Motion to Dismiss on grounds of qualified judicial immunity, as that doctrine has not been adopted by this Court. We hold that the conduct of Diamond and Brown in sending notice of the Petition for Sale to the condominium address, in subsequently filing an affidavit affirming that they gave such notice, and in communicating with the hearing judge regarding Petitioner’s exceptions to the sale, conduct alleged to be improper in Petitioner’s Complaint, did not entitle the trustees to absolute judicial immunity as they were not judicial officers at the time the alleged acts were performed. Furthermore, we hold that Rosen Hoover, P.A. was not a judicial officer at the time of the events alleged in Petitioner’s Complaint, and therefore, Rosen Hoover, P.A. is not entitled to receive absolute judicial immunity. Lastly, we hold that the concept of qualified public official immunity is inapplicable to the circumstances of this case.4 Therefore, to the extent that the trial judge granted, [564]*564and the Court of Special Appeals affirmed the grant of, Respondents’ Motion to Dismiss on grounds of immunity, we hold that such determinations were in error.

FACTUAL AND PROCEDURAL BACKGROUND

On April 7, 2008, Petitioner filed suit against Respondents in the Circuit Court for Harford County. Petitioner’s Complaint contained the following relevant factual allegations:

2. Defendants Cindy R. Diamond and Bruce D. Brown are Petitioners and court-appointed Trustees in the [judicial sale] case styled Diamond, et al. v. D’Aoust, Case No. 12-C-05-364, in the Circuit Court for Harford County (“the Petition for Sale”).[5]
6. Defendants Diamond and Brown [were] appointed Trustees to sell the Property, [located at 108 E. Seevue Court in the Hickory Hills Condominium Development,] by Order [565]*565dated March 14, 2005.[6] The Property was sold by the Trustee[s] at [a] public sale on May 26, 2005 for $65,000.00. There was no existing mortgage on the Property [as of] the date of Sale.
7. On August 3, 2004 ... Plaintiff notified MRA Property Management, Inc. (“MRA”), the managing agent for the Hickory Hills Condominium, that she relocated to a new address at 11010 Bowerman Road, White Marsh, Maryland 21162, and that all correspondence should be sent to her at that address.
8. On August 3, 2004, MRA sent an email to the Law Firm [Rosen Hoover, P.A.] advising that Plaintiff had a new address of 11010 Bowerman Road in White Marsh, Baltimore County....
9. As members of the Law Firm, the Defendants Diamond and Brown had actual or constructive knowledge that Plaintiffs address was 11010 Bowerman Road, White Marsh, Baltimore County, Maryland.
10.

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Cite This Page — Counsel Stack

Bluebook (online)
36 A.3d 941, 424 Md. 549, 2012 WL 264574, 2012 Md. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daoust-v-diamond-md-2012.