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Award of Attorney’s Fees Under the Consumer Protection Act May Not Be Subject To An Arbitration Agreement

by | Aug 30, 2011

I obtained a noteworthy ruling this morning in the Circuit Court for Montgomery County while representing a condominium unit owner in a construction defect suit.  The sales agreement provided for arbitration of claims, and contained a provision that precludes the arbitration panel from awarding attorney’s fees.  Under Md. Cts. & Jud. Proc Code Ann.  Sec. 3-221, an arbitration award cannot include attorney’s fees unless provided for in the arbitration agreement.

 The complaint filed on behalf of the unit owner included a cause of action under the Maryland Consumer Protection Act, which provides for the award of attorney’s fees.  The Court accepted our argument that, because the damages that can be awarded under the Consumer Protection Act could not be awarded in arbitration, the Consumer Protection Act claim was not subject to the arbitration agreement, and can proceed in Court before a jury.

Maryland Appellate Court Rules That Individual Unit Owners Have a Right of Action Against the Council of Unit Owners For Failing To File a Timely Suit Against the Developer For Defects In The Common Elements

by | Aug 18, 2011

Anyone who follows this blog knows that I have often warned condominium councils about the consequences of failing to take timely legal action to protect the unit owners when there is evidence of construction defects in the common elements.  The most significant consequence, of course, is that, if a contribution to repair costs is not obtained from the developer and/or its insurer, the unit owners will have to bear the full cost of repair.  Now, in an appeal in which I represented a group of individual unit owners at the Avalon Court Six Condominium in Pikesville, the Court of Special Appeals has held that individual unit owners have a right of action for negligence against the council of unit owners, acting through the board of directors, in failing to address defects in the common elements by bringing a timely claim against the developer. (more…)