State v. Goldberg
85 A.3d 231
Md.2014Background
- Ground rent ground leases are a Maryland specialty with a long historical lineage and complex bundle of rights.
- Chapter 286 (2007) replaced ejectment with a lien-and-foreclosure remedy for six months’ nonpayment on residential four-unit or fewer properties.
- Plaintiffs allege Chapter 286 retroactively abrogates vested ground lease rights, constituting an unconstitutional taking without just compensation.
- Circuit Court held Chapter 286 invalid as abrogating vested rights; the State appeals arguing remedies may be altered by statute.
- Court grants certiorari to decide whether the General Assembly may invalidate ejectment clauses and substitute remedies for defaulting lessees.
- Court ultimately affirms the circuit court, holding the right to re-entry is vested and Chapter 286 unconstitutional as applied to pre-enactment leases.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Chapter 286 abrogates vested rights | Muskin framework; re-entry is vested | Remedies may be altered; not abrogating vested rights | Chapter 286 unconstitutional as applied to vested rights |
| Whether the right of re-entry is a vested right | Right of re-entry is vested | Right of re-entry is a remedy, not vested | Right of re-entry is vested; Chapter 286 unconstitutional as to pre-enactment rights |
| Whether lien-and-foreclosure adequately replaces ejectment | Remedy substitution preserves protections | Lien-and-foreclosure provides adequate substitute | Remedy substitution does not adequately replace ejectment for vested rights |
| Whether the statute operates retrospectively under Landgraf factors | Chapter 286 retroactive | Retroactivity not fatal if remedies preserved | Chapter 286 operates retrospectively and impairs settled expectations (unconstitutional) |
Key Cases Cited
- Muskin v. State Dep’t of Assessments & Taxation, 422 Md. 544 (Md. 2011) (prohibits retrospective abrogation of vested rights; governs grounding framework)
- Dua v. Comcast Cable of Md., Inc., 370 Md. 604 (Md. 2002) (prohibits retroactive abrogation of vested rights)
- Langston v. Riffe, 359 Md. 396 (Md. 2000) (Landgraf-based retroactivity analysis adopted in Maryland)
- Kolker v. Biggs, 203 Md. 137 (Md. 1953) (historical grounding of Maryland ground rents; reversionary interests intertwined)
- Heritage Realty, Inc. v. Mayor of Baltimore, 252 Md. 1 (Md. 1969) (recognizes reversionary interest in ground leases)
- Wilson v. Simon, 91 Md. 1 (Md. 1900) (mechanic’s lien exception to retrospective abrogation of remedies)