Tipton v. Partner's Management Co.

773 A.2d 488, 364 Md. 419, 2001 Md. LEXIS 387
CourtCourt of Appeals of Maryland
DecidedJune 6, 2001
Docket117, Sept. Term, 2000
StatusPublished
Cited by21 cases

This text of 773 A.2d 488 (Tipton v. Partner's Management Co.) 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
Tipton v. Partner's Management Co., 773 A.2d 488, 364 Md. 419, 2001 Md. LEXIS 387 (Md. 2001).

Opinion

CATHELL, Judge.

On June 24, 1999, Partner’s Management Company, respondent, filed a claim in the District Court of Maryland sitting in Baltimore City for rent arrears plus interest and attorney’s fees against Robert Tipton, petitioner. Respondent and petitioner had entered into a lease agreement for an apartment and respondent alleged that petitioner had violated the lease agreement. After denying petitioner’s Motion to Dismiss, the District Court entered a judgment for respondent.

Petitioner appealed to the Circuit Court for Baltimore City. The Circuit Court affirmed the decision of the District Court. Petitioner then filed a Petition for Writ of Certiorari with this Court. We granted the petition. Petitioner has presented three questions:

*422 1. Did the Circuit Court 1 err in ruling that the lease agreement was a contract under seal so as to create a specialty instrument, and thus make the applicable period of limitations twelve years, under § 5-102(a)(5) of the Courts and Judicial Proceedings Article of the Maryland Code, rather than the three-year period for simple contracts, under § 5-101 of that Article?
2. Did the Circuit Court err in failing to address whether the application of § 5 — 102(a)(5) of the Courts and Judicial Proceedings Article is repugnant to § 8-207 of the Real Property Article of the Maryland Annotated Code?
3. Did the Circuit Court err in failing to address whether the application of § 5-102(a)(5) of the Courts and Judicial Proceedings Article [is] repugnant to § 8-208 of the Real Property Article of the Maryland Annotated Code?

We answer yes to question one. We hold that a residential lease agreement, even if the lease agreement has the word seal affixed, is subject to the three-year limitation period enunciated in Maryland Code (1973,1998 Repl.Vol.), section 5-101 of the Courts and Judicial Proceedings Article. 2 , 3 Because we are answering yes to question one, we do not need to resolve questions two and three.

I. Facts

On December 12, 1991, petitioner entered into a lease agreement (hereinafter lease) with respondent 4 to rent an apartment in Highland Village Apartments. The lease was for *423 a period of one year and was to commence on January 1, 1992 and end on December 31, 1992. Just above the signatures of the parties on the pre-printed form lease, it stated that: “IN WITNESS WHEREOF the parties hereto have set their hands and seals the day and year first above written.” Adjacent to the signatures at the end of the signature line was the word “SEAL” in parenthesis. There was no language in the lease in respect to statutes of limitation.

On November 24, 1992, petitioner was evicted from the apartment for a failure to pay rent to respondent. 5 Respondent subsequently rented the apartment to other tenants and on August 12, 1993, respondent sent a letter to petitioner that referred to all of the expenses that respondent claimed it had incurred and the amount owed to respondent by petitioner. After not receiving a payment from petitioner, respondent turned petitioner’s account over to a collection agency.

On June 24, 1999, the collection agency, on behalf of respondent, filed a claim in the District Court of Maryland sitting in Baltimore City. Petitioner filed a Motion to Dismiss with the District Court, stating that respondent had violated section 5-101 6 because it had waited approximately seven years to file a Complaint in the District Court. Respondent stated that the three-year statute of limitations of section 5-101 did not apply because the lease was under seal, thus, according to respondent, it was a specialty that was controlled by section 5- *424 102(a). 7 There was no allegation that the parties specifically agreed to a twelve-year period of limitations, nor was any evidence so indicating introduced. The claim of the longer limitation period relied exclusively on the affixátion to the lease of the word “Seal.” The District Court denied petitioner’s Motion to Dismiss, stating that:

I believe that under the current law, I must rule in favor of the Plaintiff. I personally do not think that’s fair or correct. And I’m surprised that the Legislature is allowing this to happen. Now, that’s this Court’s interpretation of the law.
But at this point, I believe that the law in the State of Maryland is that if a contract is under seal — and of course my personal feelings cannot dictate what I do in a case, I took an oath to follow the law, and I will do that today — and I believe that the law states that if a contract is under seal, that there is a twelve year Statute of Limitations as opposed to a three year Statute of Limitations. That being the law, the motion to dismiss based on the Statute of Limitations is denied.

After the hearing on the Motion to Dismiss, a trial was held. The District Court, after receiving evidence and hearing witness testimony, 8 entered a judgment in favor of respondent for $8,828.59 plus attorney’s fees of $574.29.

*425 Petitioner filed an appeal with the Circuit Court for Baltimore City. On October 23, 2000, the Circuit Court issued a Memorandum Opinion and Order in which it affirmed the decision of the District Court. The Circuit Court held that the lease was a contract under seal, thereby making the lease a specialty controlled by section 5-102, the twelve-year statute of limitation. Petitioner then filed in this Court a Petition for Writ of Certiorari.

II. Discussion

We hold that actions for rent arrears under any kind of residential lease must be filed in compliance with section 5-101. 9 We are first going to examine the history of the use of the word seal in real property and other contract contexts. Then we will examine the legislative history of section 5-101 and analyze whether the legislative intent is for residential leases to which the word seal is affixed to be controlled by section 5-101, the three-year limitation period, or section 5-102, the twelve-year limitation period.

A. Seal

The use of the word seal on documents involving the conveyance of interests in real property (whether fee simple or lessor interests), has historically had a separate purpose from that involving contracts of a different nature. While the use of the word seal, in an appropriate context, could also create a specialty, historically its primary use in the conveyancing of property interests, even including leasehold interests, was to create a presumption of adequate consideration and a presumption of validity.

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Bluebook (online)
773 A.2d 488, 364 Md. 419, 2001 Md. LEXIS 387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tipton-v-partners-management-co-md-2001.