Knight v. Princess Builders, Inc.

899 A.2d 156, 393 Md. 31, 2006 Md. LEXIS 260
CourtCourt of Appeals of Maryland
DecidedMay 17, 2006
Docket67, September Term, 2005
StatusPublished
Cited by4 cases

This text of 899 A.2d 156 (Knight v. Princess Builders, Inc.) 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
Knight v. Princess Builders, Inc., 899 A.2d 156, 393 Md. 31, 2006 Md. LEXIS 260 (Md. 2006).

Opinion

BATTAGLIA, J.

The case sub judice presents us with two issues for our resolution. The first question presented is whether a company, Princess Builders, Inc. that entered into a contract to purchase real property from the Personal Representative of an intestate estate, may pursue an appeal from an Orphans’ Court’s order directing the Personal Representative to sell the real property to one of the Estate’s heirs, Diana Knight. We hold that Princess Builders is properly considered a “party” under Maryland Code (1974, 2002 Repl.Vol.), Section 12-502 of the Courts and Judicial Proceedings Article governing such appeals.

As the second issue, Ms. Knight asserts that there was no enforceable agreement between the Estate and Princess Builders after August 31, 2003 because Princess Builders failed to satisfy a contingency in the contract. We determine that because the contingency was not drafted for Ms. Knight’s benefit, she may not use it to avoid the agreement.

Facts

In 2002, Mary Martha Isabella Knight died intestate while owning two parcels of real property in Anne Arundel County *33 known as Lot 20, upon which a house was located, and an undeveloped parcel Lot 21, known, respectively, as 1612 and 1614 Severn Road, Severn, Maryland (collectively the “Property”). When two previous personal representatives were unable to dispose of the real property held by the Estate, the Orphans’ Court for Anne Arundel County appointed David R. Forrer, an attorney, as the Successor Personal Representative.

The Personal Representative offered the Property for sale through a realtor and received a bid from the Respondent, Princess Builders, in which Princess Builders offered $75,000 for Lot 21, the undeveloped portion of the Property, or $145,000 for the entire Property. The Personal Representative informed the twelve heirs of the Estate, including the Petitioner, Diana Knight, of the offer and solicited a counter-bid from them, to which Ms. Knight responded and expressed an interest. The Personal Representative instructed her to make her offer in writing. Three days later, Ms. Knight faxed a letter to the realtor offering $146,000 for both lots. In response, the Personal Representative contacted Ms. Knight and informed her that the offer had to be made in the form of a contract. On June 5, 2003, the Personal Representative received Ms. Knight’s contract, which reaffirmed her prior offer.

After he received the contract from Ms. Knight, the Personal Representative, nevertheless, entered into a contract for sale with Princess Builders for Lot 21 for the price of $75,000 and permitted the heirs to have another opportunity to attempt to purchase Lot 20. On June 6, 2003, the Personal Representative filed a Petition to Sell Real Estate requesting the Orphans’ Court’s approval of the sale, as required by a contingency contained in the contract. None of the heirs offered to purchase Lot 20. After conferring with Princess Builders about the company’s interest in acquiring Lot 20, the Personal Representative, on June 17, 2003, filed a Supplemental Petition to Sell Real Estate to obtain the Orphans’ Court’s approval to sell both lots to Princess Builders for $145,000. *34 Princess Builders’s contracts to purchase the lots contained the following contingency:

This Contract is contingent on buyer obtaining a building permit for the house of buyers choice [b]y August 31, 2003 or this contract is declared null and void and of no further effect with deposit being declared null and void and refunded as well.. Thus, any Backup Contract could then become primary. Time being of the essence for Settlement date of Sept 9, 2003.

On June 23, 2003, Ms. Knight filed an objection to the sale with the Orphans’ Court and requested a hearing. In her petition, Ms. Knight alleged that she should be permitted to purchase both lots because she had submitted a higher offer than Princess Builders.

Approximately six months later, on December 16, 2003, a hearing on the Petition to Sell Real Estate and Ms. Knight’s objection thereto was held. Subsequently, the Orphans’ Court issued an order directing the Personal Representative to sell the Property to Ms. Knight unless, within ten days, the Estate received an offer to purchase the Property for more than the $146,000 offer made by Ms. Knight; no such offer was received. On January 2, 2004, Princess Builders filed a Notice of Appeal to the Circuit Court for Anne Arundel County.

On May 4, 2004, the Circuit Court held a hearing, at which time the Personal Representative moved to be joined as a party because he was a party to both the contract of sale with Princess Builders and would be to that with Ms. Knight as well. 1 The Circuit Court granted the motion. During the *35 hearing, testimony was taken from the Personal Representative, the realtor retained by the Personal Representative to facilitate the sale of the Property, and Ms. Knight. Thereafter, the Circuit Court issued a Memorandum Opinion in which the judge held that the Personal Representative acted in accordance with his fiduciary duties when he accepted the offers from Princess Builders rather than the contract submitted by Ms. Knight and reversed the determination of the Orphans’ Court, thereby, reinstating the contracts with Princess Builders for the purchase of both Lot 20 and Lot 21.

Thereafter, Ms. Knight filed a Motion to Alter or Amend, or Revise a Judgment, wherein she challenged Princess Builders’s standing to pursue an appeal in the Circuit Court. The Circuit Court denied her motion on June 14, 2004, and Ms. Knight filed her Notice of Appeal on July 2, 2004.

The Court of Special Appeals, in a reported opinion, determined that Princess Builders had standing to pursue an appeal to the Circuit Court based on its interpretation of the term “party.” Knight v. Princess Builders, Inc., 162 Md.App. 526, 875 A.2d 771 (2005). The intermediate appellate court noted that under this Court’s prior decisions any “aggrieved party” may note an appeal to the circuit court from the orphans’ court. Ultimately, the court concluded that “a contract purchaser whose right to purchase the estate property has been adversely affected by an orphans’ court order is aggrieved and therefore has standing to appeal.” Id. at 587, 875 A.2d at 777.

The Court of Special Appeals also determined that the contracts between the Personal Representative and Princess Builders remained enforceable throughout the proceedings in the Orphans’ Court and Circuit Court. Moreover, the inter *36 mediate appellate court concluded that because the building permit contingency in the contract between the Estate and Princess Builders was not made for Ms. Knight’s benefit, she could not use it to challenge the enforceability of the contract.

Ms. Knight filed a petition for writ of certiorari with this Court and presented the following questions for our review:

1. Did the circuit court lack subject matter jurisdiction to entertain Princess Builders’s appeal from the orphans’ court decision?

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Bluebook (online)
899 A.2d 156, 393 Md. 31, 2006 Md. LEXIS 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knight-v-princess-builders-inc-md-2006.