AH-405 Common Ownership – Liability for damages; injunction

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CITIZEN-DRAFTED BILL AH-405 
 
Requested: August 24, 2024 
Suggested assignment to: Economic Matters 
AN ACT concerning 
Common Ownership – Liability for damages; injunction 
FOR the purpose of bringing parity and equal opportunity for justice under the law to both sides of bylaw 
violations which are a breach of contract between the unit owners and the board of directors; aligning liability 
for all forms of common ownership to be similar to time-share liability; and correcting an egregious oversight 
where unit owners are liable for attorney fees to the council of unit owners, but the council of unit owners is not 
liable for attorney fees to unit owners when the council has violated the bylaws, even if it is proven that 
directors and managers did not act in good faith.   
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. 
[Brackets] indicate matter deleted from existing law. 
Underlining indicates amendments to bill. 
Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. 
Bold indicates matters for general awareness, usually existing law that provides key context for the bill.   
 
 
 
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as 
follows: 
 
 
Article – Real Property 
 
11-113  
(c) (1) If any [unit owner] PERSON OR ENTITY fails to comply with this title, the declaration, or bylaws, or 
a decision rendered in accordance with this section, the [unit owner] PERSON OR ENTITY may be sued 
for damages caused by the failure or for injunctive relief, or both, by the council of unit owners or by 
any other unit owner. 
(2) The prevailing party in any proceeding under this subsection is entitled to an award for REASONABLE 
counsel fees as determined by court.  PUNITIVE DAMAGES MAY BE AWARDED FOR THE WILLFUL AND 
WANTON FAILURE TO COMPLY WITH THIS TITLE.   
(d) The failure of the council of unit owners to enforce a provision of this title, the declaration, or bylaws 
on any occasion is not a waiver of the right to enforce the provision on any other occasion. 

§11–119. 
 
    (a) A person may bring suit against the council of unit owners, or against the condominium unit 
owners as a whole in any cause relating to the common elements, by service as follows: 
 
        (1)    If the council of unit owners is a corporation, in the same manner as the Maryland Rules 
authorize service on a corporation; or 
 
        (2)    If the council of unit owners is not a corporation, in the same manner as the Maryland Rules 
authorize service on an unincorporated association. 
    (b) A COURT IS AUTHORIZED TO FINE AND/OR REMOVE, FOR THE REMAINDER OF A TERM, 
ANY DIRECTOR OR OFFICER WHO VIOLATES THIS TITLE OR GOVERNING DOCUMENTS. 
 
11A-125 
(c) If a [developer or any other] person OR ENTITY fails to comply with any provision of this title or the 
time-share instrument, any person adversely affected by the failure to comply has a claim for 
appropriate relief. Punitive damages may be awarded for the willful and wanton failure to comply with 
this title. The court may also award reasonable attorney’s fees to the prevailing party. 
 
11B-111.10 
(c) (1) If any [lot owner] PERSON OR ENTITY fails to comply with this title, the declaration, or bylaws, or a 
decision rendered in accordance with this section, the [lot owner] PERSON OR ENTITY may be sued for 
damages caused by the failure or for injunctive relief, or both, by the homeowners association or by any 
other lot owner. 
(2) The prevailing party in any proceeding under this subsection is entitled to an award for REASONABLE 
counsel fees as determined by the court.  PUNITIVE DAMAGES MAY BE AWARDED FOR THE WILLFUL 
AND WANTON FAILURE TO COMPLY WITH THIS TITLE.   
(d) The failure of the board of directors or other governing body of the homeowners association to 
enforce a provision of this title, the declaration, or bylaws on any occasion is not a waiver of the right to 
enforce the provision on any other occasion. 
(e) This section does not apply to the Columbia Association or the village community associations for the 
villages of Columbia in Howard County. 
(f) A COURT IS AUTHORIZED TO FINE AND/OR REMOVE, FOR THE REMAINDER OF A 
TERM, ANY DIRECTOR OR OFFICER WHO VIOLATES THIS TITLE OR GOVERNING 
DOCUMENTS. 
 
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2025.