Fosler v. Panoramic Design, Ltd.

829 A.2d 271, 376 Md. 118, 2003 Md. LEXIS 454
CourtCourt of Appeals of Maryland
DecidedJuly 28, 2003
Docket73, Sept. Term, 2001
StatusPublished
Cited by19 cases

This text of 829 A.2d 271 (Fosler v. Panoramic Design, Ltd.) 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
Fosler v. Panoramic Design, Ltd., 829 A.2d 271, 376 Md. 118, 2003 Md. LEXIS 454 (Md. 2003).

Opinion

ELDRIDGE, J.

After becoming dissatisfied with a renovation project on their home, the petitioners, Scott and Gail Fosler, filed three actions against the respondent, Panoramic Design, Ltd., with which the Fosters had entered a “Construction Consultant Agreement.” One suit, filed in the Circuit Court for Montgomery County, was this declaratory judgment action. The Foslers also filed a complaint with the Maryland Home Improvement Commission, a state government agency in the *121 Maryland Department of Labor, Licensing, and Regulation. In addition, the Foslers filed a complaint with the Montgomery County Department of Housing and Community Affairs. The three actions essentially alleged that Panoramic was performing home improvement work without a license, and, consequently, that the contract between the Foslers and Panoramic was unenforceable.

The Maryland Home Improvement Commission stayed its proceedings during the pendency of the other actions. The Circuit Court, however, allowed this declaratory judgment action to go to trial and to be resolved on the merits. The Circuit Court eventually ruled that Panoramic was performing home improvement work without a license and that the contract was unenforceable. On appeal, the Court of Special Appeals reversed the judgment of the Circuit Court in an unreported opinion. This Court issued a writ of certiorari, primarily to consider whether the Circuit Court for Montgomery County erred in failing to dismiss or stay the declaratory judgment action. We shall hold that it did; accordingly, we shall not reach any other issues in the case.

I.

The following facts are not in dispute. The Foslers resided in a single-family house in Chevy Chase, Maryland, which they decided to renovate completely. Discussions between the Foslers and the respondent, Panoramic Design, Ltd., resulted in the parties entering into a “Design Agreement” and a “Construction Consultant Agreement.” The latter, which is the contract at issue in the case at bar, was executed on May 20, 1997. Pursuant to the Construction Consultant Agreement, Panoramic agreed to the following terms:

“A. BIDDING PROJECT
1. PD, Ltd. will bid or negotiate the complete project to individual subcontractors, vendors, and suppliers required to complete the project for Scott and Gail Fosler.
*122 2. PD, Ltd. will prepare an itemized construction budget and construction schedule.
3. PD, Ltd. will coordinate contracts with Scott and Gail Fosler and subcontractors.
4. PD, Ltd. will acquire copies of all subcontractors’ insurance policies, licenses, and references.
“B. MANAGING PROJECT
1. PD, Ltd. will coordinate subcontractor work on job site and local government inspections.
2. PD, Ltd. will supervise Gail and Scott Fosler’s construction site, but is not responsible for subcontractors’ work.
3. PD, Ltd. -will provide Scott and Gail Fosler with a financial Construction Management Report on the 1st and 15th of each month during the construction of your project. This report will outline Scott and Gail Fosler’s financial expenditures for construction to date.
4. PD, Ltd. will secure all subcontractors lien-release forms if required.”

In exchange, the Foslers agreed to pay to Panoramic a fee of twenty percent of the cost of materials and labor. Panoramic earned additional income based on a twenty percent mark-up of all procured materials.

Early in 1999, the Foslers became dissatisfied -with Panoramic’s work. As a result, on March 16, 1999, the Foslers filed the present declaratory judgment action in the Circuit Court for Montgomery County. Their complaint sought a declaration that the services provided to them by Panoramic under the contract constituted a “home improvement” within the meaning of the Maryland Home Improvement Law, Maryland Code (1992,1998 RepLVol., 2002 Supp.), § 8-101 et seq. of the Business Regulation Article. 1 They also sought a declaration that the contract was unenforceable under this Court’s *123 holding in Harry Berenter, Inc. v. Berman, 258 Md. 290, 265 A.2d 759 (1970), on the grounds that Panoramic was required to have a license from the Maryland Home Improvement Commission, but did not have such a license, when it performed home improvement services for the Foslers.

As previously mentioned, the Foslers also filed a complaint with the Maryland Home Improvement Commission on May 25, 1999. Similarly, this complaint claimed that Panoramic was performing home improvement work without a license, in violation of the Maryland Home Improvement Law. The Commission submitted the complaint to its Legal Services Division to determine whether administrative charges should be issued against Panoramic. Finally, the Foslers filed a complaint with the Montgomery County Department of Housing and Community Affairs. In that action, the Foslers alleged that Panoramic committed a deceptive practice in violation of the County’s consumer protection laws by performing home improvement work without a license.

On August 24, 1999, an investigator from the Montgomery County Department of Housing and Community Affairs sent a letter to the state investigator assigned to the Maryland Home Improvement Commission complaint, stating in relevant part as follows:

“Enclosed is a copy of the court notice setting trial in this matter for October 26, 1999. The charge is whether Panoramic committed a deceptive practice in violation of the county’s consumer protection laws by doing home improvement work without a license.
“It would be helpful to have the MHIC [Maryland Home Improvement Commission] opinion on the issue of whether Panoramic needed a license by then, as the court would give it great weight.”

One month later, however, the Maryland Home Improvement Commission advised the Foslers “that this agency will take no action on the complaint until final resolution” of the court *124 actions against Panoramic. 2

Subsequently, Panoramic filed a motion to dismiss the Fos-lers’ declaratory judgment action, asserting that “[t]he Maryland Legislature has determined that the sole and exclusive avenue for determining whether a contractor is a ‘home improvement contractor,’ lies with the Maryland Home Improvement Commission.

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Bluebook (online)
829 A.2d 271, 376 Md. 118, 2003 Md. LEXIS 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fosler-v-panoramic-design-ltd-md-2003.