Golden Sands Club Condominium, Inc. v. Waller

545 A.2d 1332, 313 Md. 484, 1988 Md. LEXIS 119
CourtCourt of Appeals of Maryland
DecidedAugust 29, 1988
Docket167, September Term, 1987
StatusPublished
Cited by29 cases

This text of 545 A.2d 1332 (Golden Sands Club Condominium, Inc. v. Waller) 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
Golden Sands Club Condominium, Inc. v. Waller, 545 A.2d 1332, 313 Md. 484, 1988 Md. LEXIS 119 (Md. 1988).

Opinion

ADKINS, Judge.

The Maryland Contract Lien Act is codified as Title 14, Subtitle 2 of the Real Property Article. It was enacted by Ch. 736, Acts of 1985. It includes procedures for establishing and enforcing a lien against a condominium unit when certain assessments and other costs chargeable against the unit have not been paid. We shall here hold that those procedures, so far as they relate to requirements of notice to the unit owner and that owner’s entitlement to a hearing, afford the due process of law demanded by the United States and Maryland Constitutions. 1

We reach this holding on a record in which the facts are undisputed. Appellee, Harry Waller (Waller), is the owner of condominium unit no. 1518 in a condominium governed by appellant, Golden Sands Club Condominium, Inc. (Golden *487 Sands). 2 As authorized by Md.Code (1988 Repl.Vol.), § 11-110(d) of the Real Property Article, a part of the Maryland Condominium Act, and pursuant to the condominium master deed and declaration and bylaws, Golden Sands levied certain assessments against Waller. 3 According to Golden Sands, Waller did not pay the assessments. When the assessments and the related costs, again according to Golden Sands, had mounted up to $10,661.44, Golden Sands sent Waller written notice of intention to create a lien against the unit. See § 14-203(a) of the Real Property Article.

Pursuant to the provisions of § 14-203(c) (of which more later), Waller sued Golden Sands in the Circuit Court for Worcester County. He alleged, among other things, that the statutory lien provisions were unconstitutional. The circuit court (Cathell, J.) agreed with him and on 2 November 1987

ORDERED AND DECREED that the lien claim by Golden Sands Condominium against Harry Waller be, and the same hereby is, declared and determined to be invalid in that it is based on the Maryland Contract Lien Act which this Court hereby finds to be unconstitutional for the reasons hereinabove cited.

Golden Sands appealed to the Court of Special Appeals. We granted certiorari before the case was argued in that court. 311 Md. 557, 536 A.2d 664 (1988).

I.

“At the core of the procedural due process right is the guarantee of an opportunity to be heard and its instru *488 mental corollary, a promise of prior notice.” L. Tribe, American Constitutional Law § 10-15 at 732 (2d ed. 1988) (hereinafter American Constitutional Law ). 4 Judge Cat-hell did not address the problem of notice. His decision focused on the hearing aspect. We shall explore that first.

The Maryland Contract Lien Act requires certain notice to be given to a party against whom (or against whose property) a lien is claimed. Real Prop. Art., § 14-203(a) and (b). It goes on to provide:

(c)(1) A party to whom notice is given under subsection (a) of this section may, within 30 days after the notice is mailed to the party, file a complaint in the circuit court for the county in which any part of the property is located to determine whether probable cause exists for the establishment of a lien.
(2) A complaint filed under this section shall include:
(i) The name of the complainant and the name of the party seeking to establish the lien;
(ii) A copy of the notice sent under subsection (a) of this section; and
(iii) An affidavit containing a statement of facts that would preclude establishment of the lien for the damages alleged in the notice.
(3) A party filing a complaint under this subsection may request a hearing at which any party may appear to present evidence.
*489 (d) If a complaint is filed, the party seeking to establish the lien has the burden of proof.
(e) The clerk of the circuit court shall docket the proceedings under this section, and all process shall issue out of and all pleadings shall be filed in a single action.
(f) Before any hearing is held under subsection (c) of this section, the party seeking to establish a lien may supplement, by means of an affidavit, any information contained in the notice given under subsection (a) of this section.
(g) (1) If a complaint is filed under subsection (c) of this section, the court shall review any pleadings filed, including any supplementary affidavit filed under subsection (f) of this section, and shall conduct a hearing if requested under subsection (c)(3) of this section.
(2) If the court determines that probable cause exists to establish a lien, it shall order the lien imposed.
(h) (1) If the court orders a lien to be imposed under subsection (g) of this section, or if the owner of the property against which a lien is intended to be imposed fails to file a complaint under subsection (c) of this section the party seeking to create the lien may file a statement of lien among the land records of each county in which any portion of the property is located within the earlier of:
(i) the expiration of 30 days of the court order; or
(ii) 120 days after notice under subsection (a) of this section was mailed to a party.

It is thus apparent that the owner of the property against which the lien is sought under the Contract Lien Act may obtain a hearing by filing an action in circuit court against the lien claimant, and by requesting a hearing. If that is done, no lien can be imposed until there has been a hearing. If that is not done, a lien may be established upon the expiration of 120 days from the mailing of notice to the property owner.

*490 Judge Cathell thought this procedure failed to provide the process that was due because

what is [constitutionally] required is a hearing or opportunity for a hearing established in a case filed by the [lien] claimant. Under the Maryland Contract Lien Act, the [property] owner has to file suit____
In other words, when [an] ... owner receives notice he has two choices. First, he can do nothing and in approximately 150 {sic ] days the condominium gets its lien without a hearing, without affidavits, and without judicial review and when the lien is recorded, the owner’s property is encumbered____ Secondly, the owner can sue himself. Neither one nor both courses of action appear to be constitutionally reasonable to the Court.

We believe that when the judge struck down the legislatively established hearing provisions, he applied a standard of due process higher than that constitutionally required.

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Bluebook (online)
545 A.2d 1332, 313 Md. 484, 1988 Md. LEXIS 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/golden-sands-club-condominium-inc-v-waller-md-1988.