258 A.3d 217
Md.2021Background:
- 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)
