Pollokoff v. Maryland National Bank

418 A.2d 1201, 288 Md. 485
CourtCourt of Appeals of Maryland
DecidedOctober 6, 1980
Docket[No. 152, September Term, 1979.]
StatusPublished
Cited by14 cases

This text of 418 A.2d 1201 (Pollokoff v. Maryland National Bank) 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
Pollokoff v. Maryland National Bank, 418 A.2d 1201, 288 Md. 485 (Md. 1980).

Opinion

Rodowsky, J.,

delivered the opinion of the Court.

Phyllis Pollokoff and Robert Pollokoff, appellants, filed a declaration in the Superior Court of Baltimore City claiming "individually and on behalf of all others similarly situated” $3,000,000 in damages from the appellee, Maryland National Bank. The trial court granted the bank’s motion raising preliminary objections on the ground that the minimum monetary jurisdictional requirements had not been met in this non-jury law action. The Court of Special Appeals affirmed. Pollokoff v. Maryland National Bank, 44 Md. App. 188, 407 A.2d 799 (1979). At issue is whether, in this proposed class action, the named plaintiffs may aggregate with their claim the claims they seek to assert on behalf of all members of the proposed class. Because our conclusion is that the "amount in controversy” required by Maryland Code (1980 Repl. Vol.), § 4-402 (d) (1) of the Courts and *487 Judicial Proceedings Article of at least $2,500.01 is to be measured without aggregating separate and distinct claims of multiple plaintiffs, we affirm.

Appellants allege that they opened a "Premium Passbook” account with appellee having a deposit term of 5 years which matured on March 23,1978. The account provides that at the conclusion of the term all or any of the balance (including accrued interest) may be withdrawn. If the funds are neither withdrawn, nor instruction given to the bank as to disposition of the funds, the premium account terminates, a "Regular Passbook” account is opened by the bank in the names of the depositors and the balance is transferred to the latter account. Appellants were notified by the bank on May 18, 1978 that the premium account had matured and appellants withdrew the balance on May 19,1978. The bank "ceased paying interest ... on March 23, 1978 and has refused to pay to the Plaintiffs any interest on funds deposited for the period from March 23, 1978 to May 19, 1978 ....” Described in the declaration as the plaintiff class are "those persons who have maintained a 'Premium Passbook account’ with the ... Bank for a period of time subsequent to the maturation date of the account and to whom ... Bank has refused to pay interest on the balances so maintained for said periods.” In addition to damages, the ad damnum seeks costs and a reasonable attorney’s fee.

Appellee supported its motion raising preliminary objection with an affidavit by a bank officer accompanied by the rules and regulations relating to a regular account. Appellants did not controvert any of the matters of fact set forth with this motion. It appears that on March 23,1978 the balance in appellants’ premium account, inclusive of interest, was $4,001.11, that the regular account carried 4Yz% interest, compounded and paid semi-annually on June 30 and December 31, that funds must be deposited by January 2 or July 2 to earn interest for a semi-annual period, and that funds withdrawn before the end of an interest period do not receive interest. By utilizing the 4Y%% rate on the regular account balance for the 56 days from March 23 to *488 May 19, 1978, the bank says that the claim of the named plaintiffs amounts to $27.62. 1

Appellants’ claim is a civil action in contract. For such actions the line of division between the subject matter jurisdiction of the trial courts of general jurisdiction and of the District Court of Maryland has been drawn by the General Assembly by reference to "the amount in controversy.” While § 4-401 (1) of the Courts Article provides that "the District Court has exclusive original civil jurisdiction” in an action in contract "if the debt or damages claimed do not exceed $5,000,” this general rule is subject to exceptions set forth in § 4-402. Applicable here is § 4-402 (d) (1) under which a plaintiff has an election to file either in the District Court or in a trial court of general jurisdiction, such as the Superior Court of Baltimore City, "if the amount in controversy exceeds $2500.” Although the claim of the named plaintiffs is short of this mark, it is contended 2 that the trial court should have looked to the total of all of the claims of all of the persons who would be members of the class which the named plaintiffs seek to represent. 3

Maryland Rule 209 relates to class actions. 4 A rule of *489 procedure does not extend, limit or affect the jurisdiction of any court. Md. Rule li. Thus appellants’ invocation of Rule 209 cannot confer power on the trial court over the subject matter. Any conferral of power must be found in § 4-402 (d) (1) of the Courts Article.

Section 4-402 (d) (1) originated in Ch. 528 of the Acts of 1970 (Md. Code (1957, 1966 Repl. Vol., 1970 Cum. Supp.), Article 26, § 145 (c) (2)), which implemented the constitutional amendments by which the District Court of Maryland was created. This bill included provisions, now found in § 4-402 (e) (1) of the Courts Article, relating to demand for jury trial in a civil action in which "the amount in controversy exceeds” $500. Underlying this provision was an amendment to the Maryland Constitution, also as part of the organic creation of the District Court of Maryland, proposed by Ch. 789 of the Acts of 1969 and ratified November 3, 1970. Maryland Constitution, Article XV, § 6 (now Md. Declaration of Rights, Art. 23) which had provided that the "right of trial by Jury ... in civil proceedings ... where the amount in controversy exceeds the sum of five dollars, shall be inviolably preserved,” was increased to $500. The 1970 District Court implementing legislation also provided for an appeal on the record from the District Court in a civil case "in which the amount in controversy exceeds $500 ....” Section 12-401 (d) of the Courts Article.

This Court has addressed the meaning of "amount in *490 controversy” as used in the jury trial and appeal provisions of the District Court legislation. In Bringe v. Collins, 274 Md. 338, 335 A.2d 670, application for stay denied, 421 U.S. 983, 95 S. Ct. 1986, 44 L. Ed. 2d 475 (1975) we held that Art. 23 of the Declaration of Rights guaranteed the right to a jury trial in a landlord’s action brought under Maryland Code (1974), § 8-402 of the Real Property Article to recover possession of premises. Relief to the landlord-plaintiff in that case was denied because, inter alia, there was no "claim for money damages over $500.00 or a claim that the value of the right to possession exceeds $500.00.” Id. at 347,335 A.2d at 676. The appeal provision was involved in Purvis v. Forrest Street Apartments, 286 Md. 398, 408 A.2d 388 (1979). A landlord who had appealed from the District Court had failed to cause the record in the District Court to be transmitted as required if the amount in controversy exceeded $500.

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Bluebook (online)
418 A.2d 1201, 288 Md. 485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pollokoff-v-maryland-national-bank-md-1980.