Markey v. Wolf

607 A.2d 82, 92 Md. App. 137, 1992 Md. App. LEXIS 127
CourtCourt of Special Appeals of Maryland
DecidedMay 28, 1992
Docket1309, September Term, 1991
StatusPublished
Cited by32 cases

This text of 607 A.2d 82 (Markey v. Wolf) 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
Markey v. Wolf, 607 A.2d 82, 92 Md. App. 137, 1992 Md. App. LEXIS 127 (Md. Ct. App. 1992).

Opinion

CATHELL, Judge.

This case concerns the creation of a subdivision known as “Bynum Overlook” in Harford County; the imposition of a “Declaration of Covenants, Conditions, Restrictions and Easements” (declaration) for the purpose of “protecting the value and desirability of the Property and the Lots”; and a reservation by the declarant in that declaration of the power to approve building plans. 1 It also involves the effects, on this power of approval, of the grantor’s advertising sign stating that the subdivision was one of “exclusive homesites” or signs posted by builder-purchasers of lots in the subdivision advertising “homes from the $160,000’s.”

Stephen and Tamara Markey and Wilson and Sandy Atkins, appellants, are the only couples involved in this appeal. 2 The suit was originally filed against Morris Wolf, James C. Wolf, and Sharon L. Steinberg, individually and as officers and directors of the Bynum Overlook Homeowners Association, H.M. Land Limited Partnership, M.W.W. Development Company, Terrapin Development, Inc., Leigh *141 Homes, Inc., and Stephen Homes, Incorporated (appellees). H.M. Land Limited Partnership (Developer) is the developer of the Bynum Overlook Subdivision as well as the declarant of the declaration. Its general partners are M.W.W. Development Company and Terrapin Development. Morris Wolf is not only an officer and a director of the Homeowner’s Association, he is also president of M.W.W. Development Company. Wolf signed the declaration on behalf of the general partners of the Developer. Leigh Homes, Inc. (Leigh), and Stephen Homes, Incorporated (Stephen) are home builders which purchased lots in the subdivision and subsequently built, or were to build, homes in the subdivision. However, as far as we can discern, neither Leigh nor Stephen constructed any homes belonging to the present appellants. The evidence does not indicate that the Developer was a home builder in the subdivision. Stephen and Leigh have resolved their differences with the appellants and appellants, therefore, have dismissed their appeal as to these parties. Thus, their claims against Stephen and Leigh do not directly concern us.

Procedural History

The appellants inform us in their brief that they filed a complaint on April 8,1991, which alleged that the Developer had violated the restrictive covenants governing the subdivision and had violated its fiduciary duty to the Bynum Overlook Homeowners Association by approving the building of homes substantially smaller and less expensive than pre-existing homes in the subdivision. That original complaint, according to appellants’ brief, also alleged that certain builders, including Leigh, misrepresented to prospective purchasers their intentions concerning the size and value of the homes they would build and thus conspired with the Developer to assist it in violating its fiduciary duties to the homeowners.

Thereafter, on May 1, 1991, Stephen filed an Answer and a Motion for Summary Judgment. On May 8, 1991, Morris Wolf, James C. Wolf, and Sharon L. Steinberg (hereinafter *142 collectively referred to as Wolf) and the developer filed a motion for summary judgment. On May 17, 1991, Leigh filed a motion to dismiss the complaint and motion for summary judgment. By June 8, 1991, the plaintiffs had filed an opposition to each of the motions. On the same day, according to their brief, they filed an “amended complaint.”

On June 12, 1991, the trial judge granted Stephen’s, Wolf’s and the developer’s motions for summary judgment. On June 18th, Leigh filed a motion to dismiss the amended complaint. Stephen filed a motion to dismiss the amended complaint on June 20th. Thereafter, on June 24, 1991, the appellants filed a second amended complaint. According to appellants’ brief, at a hearing on July 19, 1991, the trial judge again granted summary judgment for Stephen, Wolf and the developer and dismissed the second amended complaint as to them. Finally, on July 31, 1991, the court entered a summary judgment and dismissal of the case against Leigh. 3

*143 The trial court’s July 31, 1991, memorandum opinion states that the trial court adopted the reasoning set forth in its June 12, 1991, opinion as to all defendants except Leigh. The June 12, 1991, opinion was in reference to the original complaint. It could not have been in reference to the second amended complaint, which had not been filed as of June 12th, and the trial judge could not have relied on the first amended complaint because, as he later stated when he rendered his July 31st opinion, he was unaware that the first amended complaint had been filed. Having been informed by the appellants that the amended complaints added only claims for punitive damages and a prayer for a jury trial, the trial court then rendered a summary judgment for all of the appellees except Leigh for the same reasons given in its June 12th opinion. The July 31st opinion thus applied only to Leigh, except to the extent it adopted the June 12th opinion as to the other appellants.

We note that when appellants’ counsel informed the trial court that the function of the amended complaints was to provide for punitive damages and for a jury trial, that was incorrect. There are several important factual modifications that occurred between the original complaint and the second amended complaint.

The original complaint incorrectly alleged that the Association was charged with enforcing the building restrictions contained in the declaration. The second amended complaint correctly alleges that the developer is charged with enforcing those restrictions. Appellants further added in paragraph 14 of the second amended complaint an allegation that in approving the plans of Stephen and Leigh, Wolf and the developer had violated their fiduciary duties to appellants. Additionally, the second amended complaint *144 includes a provision added to count one — that the developer owed a fiduciary duty to the appellants to exercise architectural control, so as not to injure the value of appellants’ property. This provision was conspicuously absent from the original complaint, which based this count solely on an alleged breach of fiduciary duty by the officers and directors of the Homeowner’s Association — the alleged duty being to enforce the covenants. Not only were these additions in the second amended complaint absent from the original and first amended complaints, they are conspicuously not included in the version of the second amended complaint found in the extract.

Furthermore, the amended complaint and second amended complaint contain an entirely new count, “Breach of Restrictive Covenant,” that was absent from the original complaint. It is also absent from the copy of the second amended complaint contained in the extract. The second amended complaint also added prayers for punitive damages and asked the court to impose a constructive trust on the proceeds of all sales of lots and/or homes where houses of less than 1,800 square feet are built.

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Bluebook (online)
607 A.2d 82, 92 Md. App. 137, 1992 Md. App. LEXIS 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/markey-v-wolf-mdctspecapp-1992.