Swinson v. Lords Landing Village Condominium

758 A.2d 1008, 360 Md. 462, 2000 Md. LEXIS 588
CourtCourt of Appeals of Maryland
DecidedSeptember 8, 2000
Docket141, Sept. Term, 1999
StatusPublished
Cited by26 cases

This text of 758 A.2d 1008 (Swinson v. Lords Landing Village Condominium) 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
Swinson v. Lords Landing Village Condominium, 758 A.2d 1008, 360 Md. 462, 2000 Md. LEXIS 588 (Md. 2000).

Opinion

WILNER, Judge.

In August, 1994, petitioner, Winifred Swinson, purchased a condominium unit in the Lords Landing Village Condominium (LLVC). Subsequent to her purchase of the unit, LLVC 1 made a special assessment on the unit owners to defray the cost of repairing or replacing rotted or exposed wood and flaking paint on the exterior of the condominium buildings, in conformance with a housing code Violation Notice issued by *466 the Prince George’s County Department of Environmental Resources. Petitioner refused to pay the assessment, claiming (1) that LLVC gave false and misleading information in a Certificate of Resale that was supplied to her in connection with her purchase of the unit, and (2) that, in any event, by virtue of § 13-103 of the Prince George’s County Code, either LLVC or the person from whom she purchased the unit was liable for the assessment.

The District Court of Maryland and, on appeal, the Circuit Court for Prince George’s County, held that petitioner was liable for the assessment and that LLVC was not liable to her by reason of the information it supplied in the Certificate of Resale. Although we do not agree with all of the reasons given by the two lower courts for their respective decisions, we agree that their judgments were correct. We therefore shall affirm the judgment of the Circuit Court which, in turn, affirmed the judgment of the District Court.

BACKGROUND

Maryland Code, § 11 — 135(a) of the Real Property Article, which is part of the Maryland Condominium Act, provides that a contract for the resale of a condominium unit by a unit owner other than the developer is not enforceable unless the unit owner furnishes certain documents to the purchaser. One of the documents required to be provided is a certificate disclosing, among other things, “the existence of any pending suits to which the council of unit owners is a party” and whether the Council of Unit Owners “has knowledge of any violation of the health or building codes with respect to the unit, the limited common elements assigned to the unit, or any other portion of the condominium.” (Emphasis added). Some of that information may not be known to the unit owner. Accordingly, § 11-135(e) requires the Council of Unit Owners to “furnish a certificate containing the information necessary to enable the unit owner to comply with subsection (a) of this section.”

In 1992, LLVC, aware of chipping paint and deteriorating wood on the outside surfaces of the condominium buildings, *467 came to the conclusion that the developer of the condominium had used defective wood products on the exterior of the buildings and, accordingly, sued the developer for damages. On March 30, 1994, while that suit was pending in the Circuit Court for Prince George’s County, the Prince George’s County Department of Environmental Resources issued a Violation Notice to LLVC, care of Linda Wells, Property Manager. The Violation Notice informed LLVC that an inspection the day before revealed that several buildings throughout the project had exposed wood, rotting boards, and flaking, peeling paint and directed LLVC to repair or replace the rotted wood to a sound condition and apply a weather resistant protective coating to all exposed wooden surfaces by April 30, 1994. The Notice cited, as the ordinance violated by the conditions noted, Prince George’s County Housing Code, § H-321.2. According to Ms. Wells, the county agreed to defer any enforcement action while the suit against the developer proceeded.

The lawsuit was tried in May, 1994, and, on May 26, 1994, produced a verdict for $1,100,000 in favor of LLVC. What happened with the litigation thereafter is unclear. Ms. Wells stated that “certain areas of the litigation” were “being appealed.” The President of the Council of Unit Owners, Ms. Barbara Griffith, testified that the developer had appealed and that, as of the date of her testimony in April 1998, the appeal was still pending. The actual record of the case, which was never placed into evidence but of which we may take judicial notice, shows that judgment was entered on the docket on June 21, 1994, that no appeal was ever taken, and that no formal effort was ever made by LLVC to enforce the judgment. The only significant post-judgment action reflected on the docket was the entry of an additional judgment, on September 19, 1994, for $144,511 in attorneys’ fees. It is undisputed that LLVC never collected any money from the developer. 2

*468 In July, 1994, petitioner became interested in a unit in LLVC then owned by Margaret Dickison. She inspected the unit and noticed flaking paint, particularly on the balcony. Ms. Dickison informed petitioner that there was a problem with the wood, that LLVC had sued the builder and obtained a judgment, and that the problem would be fixed. With that assurance, petitioner agreed to purchase the unit. Upon the signing of the contract, Ms. Wells, on behalf of LLVC, prepared a Certificate of Resale for Ms. Dickison, which was, in turn, delivered to petitioner. The Certificate itself is undated, but information supplied in it suggests that it was prepared on or after July 15, 1994. This litigation arises mostly out of the information supplied in Items 5 and 8.

Three pieces of information were supplied in Item 5, two of which are relevant. First, in compliance with § 11-135(a)(4)(vi), there was attached to the Certificate the most recent operating budget of LLVC, “including details concerning the reserve fund repair and replacement and its intended use of a statement that there is no reserve fund.” The budget showed a number of appropriations for specific categories of repair and maintenance but, except for a $4,000 item for general repair and maintenance, there was no appropriation for the repair or replacement of the rotted or exposed wood. The only mention of painting was a small item for touch-up stripe-painting of parking lots. The budget indicated that the unit owner’s assessment fee would increase from $87 to $95.70/ month.

The second relevant piece of information included in Item 5 concerned litigation. In response to the statement “[t]he Council of Unit Owners is a party to the following pending lawsuits,” the Certificate stated “See letter in resale package.” Two letters, both from LLVC’s attorney in the lawsuit against the developer, were attached. The first, dated February 5, 1993 and addressed to Ms. Wells, informed her that LLVC is “currently suing” the developer and gave the name and number of the case. Counsel stated that the case involves “alleged construction defects and alleged violations of the Prince George’s County Building Code,” that the complaint was a *469 matter of public record, and that she was invited to examine the complaint at the courthouse. The second letter, dated June 14, 1993 and addressed to the LLVC unit owners, stated that the firm represented the Council of Unit Owners and that it had filed a suit against the developer in which damages were being sought “for defects to the common areas of the Condominium, including deteriorating wood and water penetration problems.” That letter also identified the case number and invited the unit owners to review the court file.

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Bluebook (online)
758 A.2d 1008, 360 Md. 462, 2000 Md. LEXIS 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swinson-v-lords-landing-village-condominium-md-2000.