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Category Archives: Maryland Law

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Recent Maryland Tax Decision Exposes Out-of-State Patent Holding Companies to Income Tax Liability

Posted in Maryland Law, Tax
Frequently, companies with significant patent portfolio or other intellectual property assets create a subsidiary or affiliated holding company to manage and enforce those assets. In many instances, these holding companies are formed to achieve some income tax benefit for the parent corporation or other related subsidiaries by providing a state-level deduction for royalty payments made … Continue Reading

Wynne Decision: Update on Maryland Out-of-State Tax Credit Against County Income Tax

Posted in Maryland Law, Tax
As we previously reported, on January 28, 2013, in Maryland State Comptroller of the Treasury v. Wynne, the Maryland Court of Appeals held that Maryland must permit Maryland resident taxpayers with pass-through income from other states to claim a credit for out-of-state income taxes paid against not only their Maryland state income taxes but also … Continue Reading

New Prince George’s County Right of First Refusal Imposes Restrictions on the Sale of Apartment Complexes in Certain Areas of the County.

Posted in Maryland Law, Real Estate
The Prince George’s County Council recently enacted legislation that will affect the transfer of any multifamily rental facility having 20 or more units that is located in a designated area of the County (“MRF”).  The legislation is not yet fully implemented and no areas have been designated, but certain notice requirements are in effect now.  … Continue Reading

Negligent Plaintiffs Still Out of Luck In Maryland

Posted in Damages, Maryland Law
Maryland’s highest state court issued an opinion this week upholding Maryland’s long-standing principle of contributory negligence, which precludes a plaintiff from recovering any damages if his own negligence contributed – even in just a small amount – to his injuries. In Coleman v. Soccer Association of Columbia, the Maryland Court of Appeals refused the plaintiff’s … Continue Reading

A Dam that Won’t Hold: Why Maryland’s Stormwater Remediation Fee Structure is Unsound

Posted in Maryland Law
Perhaps not since the Chestertown Tea Party has legislation raised the ire of Maryland citizens so dramatically. When the U.S. Environmental Protection Agency (EPA) established the Chesapeake Bay Total Maximum Daily Load (TMDL) program, Delaware, Maryland, New York, Pennsylvania, Virginia, West Virginia and the District of Columbia were ordered to take dramatic pollution reduction steps … Continue Reading

Supreme Court Rules DOMA Unconstitutional

Posted in DC Law, Federal Courts, Federal Law, Maryland Law, Tax
The U.S. Supreme Court has just ruled that the Defense of Marriage Act “is unconstitutional as a deprivation of the equal liberty of persons that is protected by the Fifth Amendment”. With this 5-4 decision, federal laws directed at married couples now will also take account of those individuals, whose same-sex marriages are recognized by … Continue Reading

Maryland Lawmakers (Partially) Resurrect the IDOT.

Posted in Finance, Lending Law, Limited Liability Companies, Loan Enforcement, Local News, Maryland Law, Property, Real Estate, Tax
A year has passed since the Maryland legislature enacted a law that eliminated the recordation tax advantage gained by using an indemnity deed of trust (“IDOT”) in most Maryland counties (see our post from May 16, 2012, “Maryland Legislature Effectively Kills the IDOT”). Now just as zombies have overtaken vampires in popular culture, the Maryland … Continue Reading

Damages Awarded Under Maryland Employment Discrimination Statute Not To Be Reduced By Unemployment Benefits, According to the Maryland Court of Special Appeals

Posted in Maryland Law
Economic damages awarded to an employee who is terminated in violation of Maryland state law prohibiting employment discrimination do not have to be reduced by the amount of unemployment benefits received by the employee post-termination. The Maryland Court of Special Appeals recently reached this holding in Edgewood Management Corp. v. Jackson, No. 76 (May 30, … Continue Reading

New Maryland Legislation Would Expand Real Property Transfer and Recordation Tax Exemption to Affiliated LLC Transactions.

Posted in Construction Law, Corporations, Kelley Drye, Limited Liability Companies, Local News, Maryland Law, Property, Real Estate, Tax
On April 8, 2013, the Maryland legislature passed a bill that, following the Governor’s signature (which is expected), will now extend a real property transfer and recordation tax exemption to certain transfers among affiliated limited liability companies.  Currently, Sections 12-108(p) and 13-207(a)(9) of the Maryland Code provide an exemption from real property transfer and recordation taxes for … Continue Reading

Got IDEAS for Maryland’s Aging Assets? Recent P3 Legislation Could Provide Solutions

Posted in Maryland Law
Lawmakers and Governor O’Malley are hoping that new legislation taking effect July 1, 2013 will inject renewed life into an existing business construct previously used primarily for Maryland’s transportation assets. By creating partnerships between the private and public sectors ( public – private partnership = P3) – addressing shortfalls in Maryland’s public asset and infrastructure … Continue Reading

Confessed Judgments – Another Tool in Creditors’ Arsenal – But Process Matters

Posted in DC Law, Maryland Law, Virginia Law
A recent Pennsylvania case, Graystone Bank v. Grove Estates, LP, upheld the enforceability of a confessed judgment provision even in light of alleged inconsistencies. In most cases, a confessed judgment is a debtor’s statement signed prior to a default that a stipulated amount is owed to a creditor and permits bypassing certain legal proceedings. In … Continue Reading

Maryland Court of Appeals Determines State Must Allow Credit Against County Income Tax For Taxes Paid on Out-of State Pass-Through Income

Posted in Maryland Law, Tax
On January 28, 2013, in Maryland State Comptroller of the Treasury v. Wynne, the Maryland Court of Appeals (the highest court of Maryland in a 5-2 decision) held that Maryland must permit Maryland resident taxpayers with pass-through income from other states to claim a credit for out-of-state income taxes paid against not only their Maryland … Continue Reading

Calculating Lost Profits, Maryland Style

Posted in Business Litigation, Construction Law, Corporations, Damages, Homebuilder Law, Limited Liability Companies, Local News, Maryland Law, Property, Real Estate
In CR-RSC Tower I, LLC v. RSC Tower I, LLC the Maryland Court of Appeal held that evidence of post-breach market conditions is not admissible to mitigate consequential lost profits if the contracting parties did not contemplate future market conditions at the time they entered into the contract. Specifically, the court determined that “consequential lost … Continue Reading

A Properly Notarized Document Is Not a Mere Technicality

Posted in DC Law, Maryland Law, Virginia Law
Have you ever thought about “fudging” a little on properly notarizing a document? Perhaps you had the signature page sent ahead and begged a favor from a friendly notary, vouching for the absent party’s signature? A recent Delaware case where this occurred ended disastrously for the litigants. In Bessenyei, et al. v Vermillion, one of … Continue Reading

Condo Associations and Property Management Companies May Be Subject to the Maryland Consumer Protection Act Even When They Are Not Direct Sellers

Posted in Maryland Law, Real Estate
Maryland condominium associations and the property management companies that service Maryland condos may be subject to liability under the Maryland Consumer Protection Act, even when they are not engaged in the sale of condo units, according to a recent decision by the Maryland Court of Appeals.  In MRA Property Management, Inc. v. Armstrong, the high … Continue Reading

Maryland Legislature Effectively Kills the IDOT

Posted in Corporations, Finance, Foreclosure, Lending Law, Limited Liability Companies, Local News, Maryland Law, Partnership, Property, Real Estate, Tax
The Maryland Senate’s passage of the widely debated and publicized Budget and Taxation bill effectively eliminates a long-used approach to avoid the current payment of mortgage recordation taxes on a commercial real estate loan. Rather than providing a direct deed of trust on the real estate to secure the loan, the property owner would create a … Continue Reading

Maryland Court Reaffirms Rule That Agents of Disclosed Principals Cannot Be Held Individually Liable

Posted in Maryland Law
The United States District Court for the District of Maryland recently reaffirmed the rule that an agent who discloses his or her principal cannot be held personally liable for any representations made on behalf of that principal. In Sears, Roebuck and Co. v. Riggs Distler & Co., Inc., 2012 WL 1391838 (D. Md. Apr. 20, … Continue Reading

Maryland Court Holds Arbitration Clause in a Contract Partially Unenforceable

Posted in Maryland Law
In College Park Pentecostal Holiness Church v. General Steel Corp., Civ. No. PJM 09-2070 (D. Md.), the United States District Court for the District of Maryland struck down several portions of an arbitration clause in a standardized construction contract as unconscionable. The case was filed by the plaintiff church after the defendant construction company failed … Continue Reading

Maryland House and Senate Approve Recordation Tax on Indemnity Deeds of Trust (IDOTs).

Posted in Distressed Debt, Foreclosure, Lending Law, Local News, Maryland Law, Property, Real Estate, Tax
The Maryland State Senate and House of Delegates have approved the 2012 budget bill that included provisions that require the application of the state recordation tax at the time of recording on all indemnity deeds of trust (and indemnity mortgages) (IDOTs) securing the guaranty to repay loans of $1 million or more. The budget is … Continue Reading

Maryland Budget Proposes to Eliminate Deferred Recordation Taxes on IDOTs in Excess of $1 Million

Posted in Maryland Law, Real Estate, Tax
Buried within the Governor of Maryland’s budget is a proposal that eliminates the ability of a grantor, as guarantor of a loan, to defer payment of Maryland mortgage recordation taxes on an indemnity deed of trust (“IDOT”) until such time when the loan liability becomes directly payable by the grantor. Currently, based on a Maryland … Continue Reading

Largest Maryland Trade Mission to India Coincides with Liberalization of Indian Securities Laws

Posted in Kelley Drye, Local News, Maryland Law
Maryland is working hard to actively develop new business and investments in India. Late last year, more than 100 state officials and business leaders, accompanied by Maryland Governor Martin O’Malley, traveled to India for six days to foster new commercial relationships. This, the largest Maryland trade mission to India and the only one headed by … Continue Reading

To Waiver or Not to Waiver, that is the Question?

Posted in Business Litigation, Construction Law, Corporations, Damages, Homebuilder Law, Local News, Maryland Law, Property, Real Estate
In Hovnanian Land Investment Group, LLC, et. Al. v. Annapolis Town Centre at Parole, LLC the Maryland Court of Appeals held that a party’s conduct (whether express or implied) may waive a condition precedent set out in a written purchase agreement despite a specific clause in the agreement requiring that all waivers must be in writing. … Continue Reading

Word Placement Makes $1 Million Difference in Contract Dispute

Posted in Employment & Labor, Maryland Law
A recent decision by the Maryland Court of Appeals underscores the importance of paying careful attention to detail when drafting a contract.  In Weichert Co. of Maryland, Inc. v. Dorothy Crago Faust (Md. Apr. 27, 2011), a real estate agency, Weichert, sued its former vice president, Faust, alleging that she had violated the terms of … Continue Reading