77 A.3d 1088
Md.2013Background
- 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)
