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258 A.3d 217
Md.
2021
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Background:

  • SHA maintains a plant pre-certification program: manufacturers submit QC plans and inspections to become pre‑approved suppliers for future SHA projects; certification does not obligate SHA to purchase materials.
  • SHA contracted with Brawner to build noise barriers on I‑95; Brawner subcontracted with Faddis, a SHA‑certified panel manufacturer, to supply panels.
  • SHA discovered nonconforming aggregate and quality issues at Faddis’s plant and suspended approval of its panels for at least 180 days; SHA communicated problems to Brawner; Faddis then sent letters to SHA and asked Brawner to pass through claims to SHA.
  • Faddis sued Brawner in federal court (claiming Brawner failed to pass through its SHA claims); later Brawner sent SHA a copy of that complaint (Aug 11, 2015) which SHA accepted as a notice of claim; petitioners appealed to the MSBCA in Sept. 2018 when SHA did not issue a decision.
  • MSBCA granted SHA summary disposition: (1) certification of Faddis as a pre‑approved supplier did not create a procurement contract with SHA, so Faddis lacked standing to sue SHA directly; (2) Brawner’s pass‑through notice was untimely because Faddis and Brawner knew of the claim by June 23, 2014 and notice was not given within 30 days.
  • The Circuit Court reversed; the Court of Special Appeals and Court of Appeals affirmed MSBCA, holding no procurement contract existed and the pass‑through notice was untimely.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Whether SHA’s pre‑approval/certification of Faddis created a "procurement contract" allowing Faddis to file a direct procurement claim against the State Faddis: SHA’s written approvals (mix designs, QC plan, plant certification) amounted to a procurement contract, waiving sovereign immunity and granting direct standing SHA: Certification only grants eligibility; no written procurement contract or procurement officer award existed, so sovereign immunity bars direct suit Held: Certification alone is not a procurement contract; no waiver of sovereign immunity; Faddis lacked standing to sue SHA directly
Whether Brawner timely filed a pass‑through notice of claim for Faddis and whether equitable estoppel/preclusion of summary disposition applies Brawner/Faddis: knowledge when claim accrued is factual; MSBCA erred by deciding timeliness on summary disposition; equitable estoppel applies because SHA acknowledged an administrative dispute SHA: Undisputed facts (e.g., Faddis’s June 23, 2014 letter) show claim basis known by June 23, 2014 so pass‑through notice required within 30 days; Brawner’s Aug 11, 2015 notice was untimely; June 19 emails related to plant certification process not a waiver of notice Held: Timeliness is decided as a matter of law on these undisputed facts; pass‑through notice was untimely; equitable estoppel/summary disposition arguments fail on the record

Key Cases Cited

  • Motor Vehicle Admin. v. Pollard, 466 Md. 531 (2019) (standard of review for administrative decisions)
  • Rosello v. Zurich American Ins. Co., 468 Md. 92 (2020) (summary judgment standards reviewed de novo)
  • Engineering Mgmt. Servs. v. Maryland State Highway Admin., 375 Md. 211 (2003) (summary disposition may be inappropriate when factual development about knowledge, intent, or motive is required)
  • Proctor v. Washington Metro. Area Transit Auth., 412 Md. 691 (2010) (waivers of sovereign immunity strictly construed)
  • Clea v. Mayor & City Council of Baltimore, 312 Md. 662 (1988) (summary judgment inappropriate only if facts permit inferences supporting non‑movant)
  • Berkey v. Delia, 287 Md. 302 (1980) (factual issues involving intent or motive often require fuller development)
Read the full case

Case Details

Case Name: Brawner Builders v. State Highway Admin.
Court Name: Court of Appeals of Maryland
Date Published: Aug 25, 2021
Citations: 258 A.3d 217; 476 Md. 15; 58/20
Docket Number: 58/20
Court Abbreviation: Md.
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    Brawner Builders v. State Highway Admin., 258 A.3d 217