2012 U.S. Dist. LEXIS 129794
D. Md.2012Background
- Fontell was assessed a $236.71 condominium fee by Norbeck Grove and its management company TMG; Hassett and Gatling were involved in collection acts.
- TMG and Norbeck Grove sent late notices, added fees, placed a lien, and warned of foreclosure over the disputed fee during 2006–2008.
- A judgment was obtained by Norbeck Grove against Fontell, later dismissed by the Montgomery County Circuit Court as time-barred under Maryland’s three-year statute of limitations.
- Fontell filed this federal action on June 7, 2010 asserting FDCPA, MCDCA, MCPA, MCLA, and MCALA claims, and vicarious liability against Norbeck Grove, TMG, and its employees.
- The court granted partial summary judgment on April 20, 2012, then granted Fontell’s motion to alter/amend in part, reinstating MCDCA/MCPA claims against Hassett, Gatling, and TMG with a damages window post-June 6, 2007.
- Defendants moved to amend the June 28, 2012 order arguing improper individual liability findings; the court denied the motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hassett's acts support personal liability under MCDCA/MCPA. | Fontell: Hassett personally participated in unlicensed collection efforts. | Hassett: no personal liability; acts were not collection actions requiring a license. | Hassett personally liable under MCDCA and MCPA. |
| Whether Gatling's acts support personal liability under MCDCA/MCPA. | Fontell: Gatling personally participated in unlicensed collection and lien actions. | Gatling: signing liens was administrative and not personally liable. | Gatling personally liable under MCDCA and MCPA. |
| Whether the motion to amend under Rule 59(e) should be granted to alter the prior judgment. | Defendants' prior liability finding was proper; no manifest error. | Error in holding individuals liable based on guilt by association without factual predicate. | Motion denied; judgment reaffirmed. |
Key Cases Cited
- Metromedia Co. v. WCBM Md., Inc., 327 Md. 514 (1992) (personal liability of corporate officers for violations when they participate or direct unlawful acts)
- Maryland v. Universal Elections, 787 F.Supp.2d 408 (D. Md. 2011) (corporate officers may be liable for statutory violations when they motivate or participate in the wrongdoing)
- Tillman v. Wheaton-Haven Recreation Ass’n, Inc., 517 F.2d 1141 (4th Cir. 1975) (personal liability based on participation in a tortious act by an entity)
- Bradshaw v. Hilco Receivables, LLC, 765 F.Supp.2d 719 (D. Md. 2011) (unlicensed filing of lawsuits can support FDCPA/MCDCA liability)
- Kouabo v. Chevy Chase Bank, F.Supp.2d 471, 336 F.Supp.2d 471 (D. Md. 2004) (liability for enforcing a non-existent right requires knowledge or reckless disregard)
- Tedrow v. Deskin, 265 Md. 546 (1972) (personal liability of agents for torts committed in the name of the corporation)
- TFWS, Inc. v. Franchot, 572 F.3d 186 (4th Cir. 2009) (personal liability principles justified with respect to timely identification of violation context)