Department of Housing & Community Development v. Mullen

886 A.2d 900, 165 Md. App. 624, 2005 Md. App. LEXIS 251
CourtCourt of Special Appeals of Maryland
DecidedOctober 5, 2005
Docket1691, September Term, 2003
StatusPublished
Cited by15 cases

This text of 886 A.2d 900 (Department of Housing & Community Development v. Mullen) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Housing & Community Development v. Mullen, 886 A.2d 900, 165 Md. App. 624, 2005 Md. App. LEXIS 251 (Md. Ct. App. 2005).

Opinion

SALMON, Judge.

Jon and Sally Mullen (the “Mullens”) are curators of property known as Knock’s Folly, located in Kent County. The Mullens’ curatorship agreement, which is more fully described infra, provided that the Mullens personally would donate the funds necessary to restore and maintain Knock’s Folly. In exchange for their gift, the Mullens were permitted to live on Knock’s Folly rent and tax free, for the duration of their natural lives. 1

In 1974, the Commissioners of Kent County acquired ownership of Knock’s Folly. Kent County, in 1980, granted a conservation easement to the Maryland Historical Trust (“MHT”), which is a body corporate of the Department of Housing and Community Development (“DHCD”), an agency of the State of Maryland. The easement restricts the nature of the renovation and rehabilitation projects on the premises. Since 1990, Knock’s Folly has been owned by the State of Maryland but is maintained under the care of the Department of Natural Resources (“DNR”).

In the curatorship agreement entered into between the DNR and the Mullens, the Mullens acknowledged both the existence of the easement on the land and their obligation to obtain DNR’s and MHT’s permission for all renovation pro *630 jects. The curatorship agreement provided that failure to comply with any or all of its terms permitted DNR to terminate the agreement and thus cancel the Mullens’ right to live at Knock’s Folly.

Litigation commenced between the Mullens and the DNR (and others) in 2002. The details of that litigation will be set forth below, but broadly speaking, the trial judge resolved the dispute between the parties by making four major rulings, viz.

1. That the deed of easement granted to the MHT was a valid legal restriction as a condition of the gift of Knock’s Folly from the Kent County Commissioners to the DNR;
2. The Knock’s Folly property was subject to the easement under the curatorship agreement between the Mullens and DNR;
3. The Mullens breached the terms of both the curatorship agreement and the easement when they built certain structures on Knock’s Folly without the approval of either the DNR or the MHT; and
4. Despite their breach of the curatorship agreement, the MHT and DNR were enjoined from enforcing some, but not all, rights spelled out in the Agreement.

MHT and DNR filed an appeal; the Mullens filed a timely cross-appeal.

I. FACTUAL AND PROCEDURAL BACKGROUND

Knock’s Folly is a seventeen-acre parcel of land located on Turners Creek Landing Road in Kent County. The property is improved by a main house composed of two adjoining structures: a one and one-half story log house that was built in 1753 (approximately) and a three-story federal-style brick townhouse built at the dawn of the nineteenth century. The house is on the National Register of Historic Places.

Knock’s Folly was deeded to the Commissioners of Kent County in 1974. Kent County, in 1980, granted a conservation easement in gross in the property to the MHT, with the goal *631 of promoting and preserving Knock’s Folly’s “historic, aesthetic and cultural character.” The easement states that the MHT is funded by the “Heritage Conservation and Recreation Service and Maryland Historical Trust.” MHT agreed when it accepted the easement to “comply with all requirements of the Heritage Conservation and Recreation Service made pursuant to the National Historic Preservation Act of 1966 ....” Kent County, in turn, agreed that it would not “cause, permit, or suffer” any building or other structure on the property without the consent of the MHT. The conservation easement further provided that it was binding upon the grantor’s (Kent County’s) successors and assigns.

On November 10, 1990, the Mullens entered into a Resident Curatorship Agreement (“Agreement”) with the DNR in which they were designated as curators of Knock’s Folly. Under the DNR’s curatorship program, private citizens agree to donate personally the funds necessary to restore, renovate, and maintain historic properties. In exchange, the state grants the curators tax benefits, as well as a life estate in the premises, subject to certain conditions.

The Agreement contained strict guidelines regarding restoration and renovation work on the property. And, the Mullens agreed that in performing such work they would adhere to the Secretary of the Interior’s “Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings” (“the Standards”). 2

The Agreement also contained the following clause:

*632 The [Mullens] acknowledge that the Premises are subject to a historic preservation easement held by [MHT]; they furthermore acknowledge that all restoration work they perform on the premises is subject to approval by [MHT].

(Emphasis added.)

A copy of MHT’s historic preservation easement was attached to the Agreement. The Agreement further provided that the Mullens were required to contact MHT “prior to undertaking any excavation on the [premises” and “abide by [MHT’s] recommendations ... to mitigate anticipated disturbance” from such work “provided that such recommendations are received in writing by the Curators ... within fourteen (14) calendar days from the date the Curators first contact [MHT].”

In addition, the Mullens agreed that all restoration work would be in accordance with a detailed schedule (“the Schedule”), which was a list of projects that the Mullens were expected to complete within five years of the date of signing the Agreement. The Schedule anticipated that the Mullens would contribute at least $315,047 to restore Knock’s Folly. Although the Agreement contained a clause that allowed the Mullens to make “reasonable adjustments as work progressed],” without DNR’s prior approval, any adjustments that “substantially alter[ed] the original intent and scope of the Schedule” required the prior approval of the DNR’s Supervisor of Cultural Resources Management.

The Agreement also contained a termination clause that provided that DNR could terminate the Agreement upon sixty days’ notice if the Mullens failed to “comply with any and/or all of [its] terms and conditions.”

The relationship between the Mullens as curators and the DNR and the MHT operated smoothly for the first several years after the Agreement was signed. During this period, the Mullens substantially completed all the restoration work required on the historic home. As the circuit court was later to find,

*633 [djuring the term of the Agreement, the Mullens had opportunity on occasion to seek prior approval for projects at Knock’s Folly that had not been contemplated in the Schedule. On at least one such occasion regarding the alteration to an interior staircase, the Mullens submitted detailed plans and specifications to MHT, through DNR, as requested prior to initiating the project.

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Bluebook (online)
886 A.2d 900, 165 Md. App. 624, 2005 Md. App. LEXIS 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-housing-community-development-v-mullen-mdctspecapp-2005.