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77 A.3d 1088
Md.
2013
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Background

  • Hurwitz, a buyer, contracted Aug. 6, 2009 to purchase a Caves Valley home and already owned two other lots in the same HOA.
  • Disclosures under Maryland Homeowners Association Act (Act) were offered but later struck from the contract; buyer allegedly declined disclosures claiming he already had them.
  • Closing was set for Nov. 2, 2009; on Nov. 1, 2009, buyer’s agent informed sellers he would not close.
  • Buyer canceled after failing to receive Act disclosures; sellers sued for breach of contract seeking specific performance; buyer moved to dismiss.
  • Circuit Court held the Act applied and that disclosures were required; Court of Special Appeals affirmed; Maryland Supreme Court granted certiorari.
  • Issue framed: (1) whether Hurwitz is a “member of the public” under the Act and (2) whether equitable estoppel can bar the right to cancel under the Act.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Is Hurwitz a “member of the public” under §11B-106(a)? Hurwitz is protected by the Act as a buyer who intends to occupy. The term excludes insiders who already possess disclosures. Yes; Hurwitz is a member of the public.
Can the seller’s equitable estoppel defense bar the buyer’s cancellation right under the Act? Equitable estoppel cannot override the Act’s non-waivable rights. Equitable estoppel may defeat the right where reliance and detriment exist. Estoppel may be raised; triable issue for fact-finding.
Should the case be remanded for further proceedings on estoppel? Facts about offer of disclosures and buyer’s acceptance/declination require fact-finding. The circuit court properly disposed of the case on a motion to dismiss. Yes; remand to circuit court for proceedings consistent with this opinion.

Key Cases Cited

  • Lipitz v. Hurwitz, 207 Md.App. 206, 52 A.3d 94 (Md. App. 2012) (discussed public-vs-insider interpretation of the Act; standard for inheriting protections under the statute)
  • Walker v. State, 432 Md. 587, 69 A.3d 1066 (Md. 2013) (statutory interpretation—plain meaning and context)
  • Green v. Church of Jesus Christ of Latter-day Saints, 430 Md. 119, 59 A.3d 1001 (Md. 2013) (canon of interpreting statutes to avoid absurd results)
  • Gardner v. State, 420 Md. 1, 20 A.3d 801 (Md. 2011) (statutory interpretation and avoiding absurd results)
  • Kendall v. Howard County, 431 Md. 590, 66 A.3d 684 (Md. 2013) (guidance on reviewing trial court dismissals; standard of review)
  • Cunninghame v. Cunninghame, 364 Md. 266, 772 A.2d 1188 (Md. 2001) (estoppel and related defenses in statutory contexts)
  • Crane Co. v. Onley, 194 Md. 43, 69 A.2d 903 (Md. 1949) (equitable estoppel and contract-related defenses)
Read the full case

Case Details

Case Name: Lipitz v. Hurwitz
Court Name: Court of Appeals of Maryland
Date Published: Oct 21, 2013
Citations: 77 A.3d 1088; 435 Md. 273; 2013 Md. LEXIS 739; 2013 WL 5676691; No. 2
Docket Number: No. 2
Court Abbreviation: Md.
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    Lipitz v. Hurwitz, 77 A.3d 1088