MOODK’S MARYLAND OFFICE OBTAINS DECLARATORY JUDGMENT FOR CONDO ASSOCIATION

Megan Mantzavinos, Esquire of Mark’s O’Neill’s Maryland office successfully advocated for the entry of a declaratory judgment in favor of her client, a condominium association.  Plaintiffs are the owners of a unit of a high-rise condominium in Ocean City, MD.  The unit directly upstairs from Plaintiffs had a water leak which caused damage in their unit.  They made a claim against the condominium for the cost of repairs.

Pursuant to a provision in its bylaws, the Defendant maintains a “bare walls” insurance policy which covers damage to the common areas of the building, but not to anything inside the condominium units.  When Defendant refused to pay for the damage to the Planitiffs’ unit, they filed suit, seeking a declaration that the condo association was required to pay for the damage.  After limited discovery, the parties filed cross motions for summary judgment.

The current version of the Maryland Condominium Act, Md. Code Ann. Real Property s. 11-101, et seq., places responsibility for repair of condominium units with the condo association and requires it to maintain insurance for damage to the interior of units.  Md. Code Ann. Real. Prop. S. 11-114.  But an earlier version of the Act, which was in effect when the Defendant was formed in 1975, did not require condo associations to repair individual units after a casualty loss.  In 2008, the Maryland Supreme Court had ruled that condominiums which were formed prior to the enactment of the current statute were not responsible for individual units, Anderson v. Council of Unit Owners of Gables on Tuckerman Condominium, 404 Md. 560, 591 (2008); however, that ruling was overturned by statute a year later.

Defendant’s argument relied on another section of the Condominium Act, which Plaintiffs ignored, Md. Code Ann. Real Prop. ss.  11-142(a) and (b).  This section provides that condominiums which existed before July 1, 1982 are subject to the requirements of s. 11-114, unless the condo’s governing documents provide otherwise.  s. 11-142 also states that a pre-July 1, 1982 condo is not required to amend its governing documents to comply with the requirements of s. 11-114.

The Circuit Court for Worcester County found that although s. 11-114 still applies to condo associations formed before July 1, 1982, but that if the bylaws contain provisions which conflict with 11-114, then the bylaws control.  The Court examined Defendants’ bylaws and found that they placed responsibility for maintenance and repair work inside a unit with the unit owner.  The Court also found that the bylaws limited Defendant’s obligation to ensure the condominium did not include anything within the individual units.  Read as a whole, the Court characterized Defendant’s bylaws as creating a “comprehensive, complementary mechanism for addressing damage to the condominium unit.”  Accordingly, the Court granted Defendant’s Motion for Summary Judgment and denied Plaintiff’s.

MOODK ATTORNEYS SUCCESSFULLY DEFEND HOA’S RIGHT TO ENFORCE BUILDING RULES

Attorneys Christian Scheuerman and Tennessis Guerrero of the MOODK’s Philadelphia Office obtained a verdict in favor of their client, a local homeowners association, following a bench trial in Monroe County, Pennsylvania. Plaintiff claimed he was owed monetary damages after his submission of an amended floor plan for a new home he planned to build in the community was denied by MOODK’s client. Plaintiff stated that he intended to change the use of one of the rooms contained in the floor plan and convert it to a 6th bedroom. MOODK’s client denied the floor plan for purposes of renting and leasing because the space he intended to convert into a 6th bedroom did not comply with the Association’s rules, which required a bedroom to be a minimum of 100 sq feet and intended for sleeping purposes only. In this case, the room was not intended for only sleeping purposes because the 6th bedroom was not set apart from the kitchen and dining room. Rather, the space was an open space lay out and MOODK’s client argued it was not intended for sleeping purposes only because the space was for cooking, dining, and sleeping. Construction on Plaintiff’s lot has not yet begun. Plaintiff sued MOODK’s client claiming the Association’s denial caused him financial harm because he would lose resale value and rental income. MOODK’s attorneys successfully argued that Plaintiff lacked standing because the damages were purely speculative and unascertainable. The attorneys further argued that the proposed floor plan did not comply with the Association’s rules, which the Court agreed with and denied Plaintiff his requested relief.

MOODK ATTORNEYS OBTAIN DEFENSE VERDICT IN MEDICAL MALPRACTICE CASE

Attorneys Mark Merlini and Mike Joyce of MOODK’s Philadelphia Office obtain a verdict in favor of their physician client following a jury trial in Berks County. Plaintiffs claimed that their 96-year-old decedent died from congestive heart failure after being transferred from a hospital to a local nursing facility for rehabilitation, where MOODK’s client was her attending physician. The Plaintiffs’ decedent had been on Lasix for her congestive heart failure prior to her admission to the hospital for a kidney injury at which time her Lasix was stopped. The hospital never restarted her Lasix upon transfer to the nursing home and MOODK’s client determined it was not appropriate to restart Lasix upon her admission to the nursing home due to her still recovering from her kidney injury and continued dehydration, while also having severe aortic stenosis. After five days in the nursing home and showing no symptoms of congestive heart failure, the decedent passed away quietly in her sleep. Plaintiffs sued the hospital, nursing home and MOODK’s client claiming negligence. The hospital and nursing home settled Plaintiffs’ claims but MOODK’s client refused to settle. The jury found in favor of MOODK’s client finding that no negligence had been committed by the physician.

MOODK ATTORNEYS SECURE SUMMARY JUDGMENT IN DEFAMATION CASE

MOODK Attorneys Patricia Fecile-Moreland and Michael Joyce of the Philadelphia Office secured summary judgment for our clients on a defamation and tortious interference case. MOODK’s clients had entered into a business agreement for the purchase of a company located in Philadelphia which did heating and air conditioning repairs, among other things. The relationship between the parties soured after acts of alleged vandalism occurred on the property of the client’s business. Plaintiff eventually left the company and then accused MOODK’s client of telling Plaintiff’s friends and potential business relationships that he had been the one to vandalize the company, steal clients, and commit burglary. Plaintiff claimed that these alleged defamatory comments also caused an associate of Plaintiff’s to stop doing business with him. Following discovery, MOODK attorneys moved for summary judgment on behalf of their client arguing that Plaintiff had failed to produce evidence that could support his claims. The Court agreed determining that the only evidence that had been produced by Plaintiff was inadmissible hearsay and could not support the claim. The Court granted the Motion and dismissed all claims against MOODK’s client and entered judgment in their favor.