248 A.3d 981
Md.2021Background
- Denicia Walker purchased a condominium unit and repeatedly defaulted on mandatory association assessments; the association recorded eight prior liens and obtained several personal judgments.
- The association gave notice and recorded a ninth lien (Dec. 22, 2015) stating a present balance and declaring it would secure “plus all sums becoming due thereafter.”
- Walker filed multiple Chapter 13 bankruptcies; the association filed a proof of secured claim that included assessments, interest, and attorney’s fees that accrued after the ninth lien was recorded.
- Walker objected, arguing the Maryland Contract Lien Act (MCLA), Real Prop. §§14-201–206, does not permit a lien to secure amounts that accrue after recordation (a “continuing lien”).
- The U.S. Bankruptcy Court for the District of Maryland certified the controlling question of Maryland law to the Maryland Court of Appeals.
Issues
| Issue | Plaintiff's Argument (Walker) | Defendant's Argument (Association) | Held |
|---|---|---|---|
| Whether a lien perfected under the MCLA may secure unpaid damages, collection costs, late charges, and attorney’s fees that accrue after the lien’s recordation (a continuing lien) | MCLA limits liens to sums that are "due" at the time of recording; legislative history and due-process protections require an opportunity to contest the precise sums before a lien attaches, so continuing liens are prohibited | The statute does not expressly forbid continuing liens; permitting them is practical and efficient, and unit owners are on notice via governing documents and prior procedures | No. The Court held the MCLA does not permit continuing liens; liens may secure only damages, costs, late charges, and fees that are due at the time of recordation. |
Key Cases Cited
- Golden Sands Club Condo., Inc. v. Waller, 313 Md. 484 (1988) (upheld MCLA procedures as satisfying due process; lien does not attach until after opportunity to be heard)
- Select Portfolio Servicing, Inc. v. Saddlebrook West Util. Co., LLC, 455 Md. 313 (2017) (reiterated that no lien attaches until owner has opportunity to be heard; legislative history disfavored creation of lien solely by contract)
- Dickerson Lumber Co. v. Herson, 230 Md. 487 (1963) (mechanic’s lien statute construed to prohibit attachment to future indebtedness)
- MacBride v. Gulbro, 247 Md. 727 (1967) (statutory creation of liens is in derogation of common law and must be strictly construed)
- Equitable Trust Co. v. Imbesi, 287 Md. 249 (1980) (court cannot create or extend a lien beyond statutory authority)
- Kushell v. Dep’t of Nat. Res., 385 Md. 563 (2005) (statutes must not be given forced or subtle constructions that extend their application)
- Glass City Bank of Jeanette v. United States, 326 U.S. 265 (1945) (definition of a continuing lien discussed in federal context)