Simmons, et al. v. The Maryland Management Company, et. al., No. 1680, September
Term, 2019. Opinion by Eyler, Deborah S., J.
MARYLAND CONSUMER DEBT COLLECTION ACT (MCDCA) § 14-202(8)
DEBT COLLECTION BY ENFORCING RIGHT WITH KNOWLEDGE RIGHT
DOES NOT EXIST - - MARYLAND CONSUMER PROTECTION ACT (MCPA) §§
13-301(14)(iii) and 13-303(5) MISREPRESENTATION IN DEBT COLLECTION - -
REAL PROPERTY § 8-208(d) PROHIBITION AGAINST ANTI-WAIVER
PROVISIONS IN RESIDENTIAL LEASES - - COURTS AND JUDICIAL
PROCEEDINGS ARTICLE § 5-1202(a) PROHIBITION AGAINST FILING DEBT
COLLECTION ACTION BEYOND STATUTE OF LIMITATIONS - - TIPTON V.
PARTNERS MANAGEMENT CO., 364 Md. 419 (2001) - - SMITH V. WAKEFIELD,
LP, 462 Md. 713 (2019) - - CHAVIS V. BLIBAUM, ___Md.___(August 27, 2021).
Former Tenants of residential properties in Maryland brought putative class action
against former Landlords whose leases contained clause purporting to extend the statute of
limitations for actions arising out of them from 3 to 12 years and against Lawyers who on
behalf of Landlords brought back-rent collection actions against Tenants in the District
Court of Maryland. Tenants sued for damages for violations of the MCDCA provision
barring debt collectors from enforcing or attempting to enforce a right with knowledge it
does not exist; for violations of the MCPA, including the prohibition against making false
representations in collecting consumer debt; and for violations of provision of Real
Property Article prohibiting landlords from including a waiver of rights in a residential
lease. In addition, Tenants sought declaratory and injunctive relief based on violation of a
statute prohibiting filing an action to recover time-barred consumer debt. Circuit court
granted motion to dismiss for failure to state a claim for which relief could be granted.
Held: Judgment vacated.
In Tipton, the Court of Appeals held that the statute of limitations for back-rent
actions against residential tenants is three years and a lease with “(Seal)” next to the
signature line is not a specialty to which a 12-year limitations period applies. It further
stated it was “holding” that a provision so extending the limitations period could be
included in the body of the lease. In Smith, in which such a provision was included in the
lease, the Court held that the latter “holding” in Tipton was “dicta,” that a provision
extending limitations to 12 years in a residential lease violates the anti-waiver provision of
RP section 8-208(d), and that it is otherwise unreasonable and unenforceable.
The District Court back-rent actions against Tenants were brought after Tipton was
decided and before Smith was decided, and more than three years after leases were
breached. Tenants alleged that Landlords and Lawyers violated the MCDCA by filing suits
with knowledge that the right they were seeking to enforce did not exist, i.e., that debts
were time-barred and no longer collectible. Landlords and Lawyers maintained that Smith