IN THE CIRCUIT COURT OF MARYLAND

FOR MONTGOMERY COUNTY

DOE )
)
Plaintiff/Counter-Defendant, )
)
v.
) Case No.:
XXXXX-X
)
DEFENDANT ONE, )
and )
TITE CO!PAN", )
and )
DEFENDANT T#O )
and
)
!O$T%A%E CO!PAN" )
)
Defendants/Counter-Plaintiffs.
)
DEFENDANT TITLE COMPANYS MOTION TO DISMISS
Defendant Title Co&'an(, )( and t*rou+* undersi+ned ,ounsel, &oves t*is -onora)le
Court 'ursuant to !ar(land $ule ./-0// to dis&iss t*e ,lai& &ade in Count I of Plaintiff1s
Co&'laint a+ainst t*e Defendant Title Co&'an(, )e,ause, as &ore full( e2'lained )elo3,
Plaintiff *as failed to state a ,lai& u'on 3*i,* relief ,an )e +ranted.
$es'e,tfull( su)&itted

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Counsel for Defendant, Title Co&'an(
5
IN THE CIRCUIT COURT OF MARYLAND
FOR MONTGOMERY COUNTY
DOE )
)
Plaintiff/Counter-Defendant, )
)
v.
) Case No.:
XXXXX-X
)
DEFENDANT ONE, )
and )
TITE CO!PAN", )
and )
DEFENDANT T#O )
and
)
!O$T%A%E CO!PAN" )
)
Defendants/Counter-Plaintiffs.
)
DEFENDANT TITLE COMPANYS MEMORANDUM IN SUPPORT OF ITS MOTION
TO DISMISS PURSUANT TO MD RULE 2-322
I. PROCEDURAL HISTORY
On De,e&)er 6, /778, Plaintiff filed a Co&'laint in t*e 9an:ru't,( Court, and filed an
A&ended Co&'laint on or a)out De,e&)er /7, /778 in t*e sa&e 9an:ru't,( Court t*at 3as
later dis&issed for la,: of su);e,t &atter ;urisdi,tion. T*e alle+ations &ade in Plaintiff1s
Co&'laint, in t*is Case, are fairl( si&ilar to t*e alle+ations &ade in )ot* t*e ori+inal Co&'laint
and t*e A&ended Co&'laint t*at 3as filed in t*e adversar( 'ro,eedin+s in t*e 9an:ru't,(
Court.
/
Plaintiff alle+ed t*at Defendant Title Co&'an( is in violation of t*e 'rovisions of t*e
Prote,tion of -o&eo3ners In Fore,losure A,t statutes in Count I of t*e Co&'laint and s*ould
t*erefore )e lia)le for tre)le da&a+es, and ,osts.
Defendant Title Co&'an( avers t*at P-IFA is ina''li,a)le to !ar(land title insurers
3*ile ,ondu,tin+ settle&ent servi,es, or 3*ile issuin+ title insuran,e. Title Co&'an( t*erefore
re<uests t*is Court to dis&iss Count I of Plaintiff1s Co&'laint a+ainst Defendants Title
Co&'an(.
II. FACTS
Plaintiff %3en Plaintiff =>Plaintiff?) 3as t*e le+al title *older of real 'ro'ert( lo,ated at
5@05A 9ald -ill Court, 9urtonsville, !ar(land. At so&e 'oint, Plaintiff failed to &a:e
'a(&ents to *er &ort+a+ee and fa,ed t*e 'ros'e,t of fore,losure. B*e t*en filed a C*a'ter 50
voluntar( 'etition for )an:ru't,( 'ursuant to 55 C.B.C. .. 5075-5007.
Bu)se<uentl(, Plaintiff alle+edl( entered into an a+ree&ent 3it* Defendant One, doin+
)usiness as Finan,ial Co&'an(, in 3*i,* Defendant FINANCIA CO!PAN" alle+edl(
arran+ed for Plaintiff to sell *er real 'ro'ert( to Defendant T3o. T*e alle+ed arran+e&ent
'rovided t*at Plaintiff 3ould 'a( rent to T3o 3*i,* 3ould ,over T3o1s &ont*l( &ort+a+e
o)li+ations, and eventuall(, T3o 3ould ,onve( t*e 'ro'ert( )a,: to Plaintiff.
Defendant Title Co&'an( 3as retained )( Defendant T3o and/or *er &ort+a+e *older,
O'tion One !ort+a+e, to ,ondu,t a title sear,* of t*e 'ro'ert( and to 'rovide ,usto&ar( title and
,losin+ servi,es, in,ludin+ t*e 're'aration of t*e -CD-5 Btate&ent and dis)urse&ent of funds to
t*e 'arties as dire,ted )( O'tion One. Title Co&'an( ,ondu,ted t*e settle&ent of t*e sales
transa,tion on Dul( 50, /77E. At no ti&e durin+ t*e 'ro,ess of 're'arin+ t*e transa,tion for
0
settle&ent or even on t*e date of settle&ent did Plaintiff infor& Title Co&'an( t*at s*e 3as in
)an:ru't,( or t*at s*e *ad entered into a rent-)a,: a+ree&ent 3it* t*e )u(er, Defendant T3o.
T*e settle&ent 3as *eld 3it*out o);e,tion )( an( 'art( at t*e offi,es of Finan,ial Co&'an(. A
,*e,: in t*e a&ount of FG8,G8E.8E 'a(a)le to Plaintiff 3as 're'ared )( Title Co&'an( on t*e
settle&ent date. Pursuant to t*e e2'ress oral and 3ritten instru,tions of Plaintiff, *o3ever, Title
Co&'an( ,aused t*e ,*e,: to )e delivered to Finan,ial Co&'an(. T*e ,*e,: 3as ,as*ed on
Dul( 5E, /77E. As s*o3n in t*e -CD-5, t*e fees for title servi,es in t*e a&ount of FEE7 'a(a)le
to Title Co&'an( 3ere s*ared e<uall( )( t*e )u(er and seller, in a,,ordan,e 3it* lo,al ,usto&
and t*e 'arties1 a+ree&ent.
III. STANDARD OF REVIEW
It is 3ell esta)lis*ed t*at a &otion to dis&iss for failure to state a ,lai& u'on 3*i,* relief
,an )e +ranted under $ule /-0//=))=/) s*ould )e +ranted if it a''ears )e(ond dou)t t*at t*e
'laintiff ,an 'rove no set of fa,ts in su''ort of *er ,lai& 3*i,* 3ould entitle *er to relief. See
Rossaki v. NUS Corp., 558 !d. A''. 55, 8AE A./d /70 =5AA6) =>T*e +rant of a &otion to
dis&iss is 'ro'er if t*e ,o&'laint does not dis,lose, on its fa,e, a le+all( suffi,ient ,ause of
a,tion?)H See also Century Natl Bank v. Makkar, 50/ !d. A''. G@, 6E5 A./d 5 =/777) =!otion
to dis&iss 3as 'ro'erl( +ranted 3*ere t*e alle+ations all failed to state a ,lai& for 3*i,* relief
,ould )e +ranted)H Lubore v. RPM Assocs., 57A !d. A''. 05/, 86@ A./d E@6 =5AA8) =>#*en
&ovin+ to dis&iss, a defendant is assertin+ t*at, even if t*e alle+ations of t*e ,o&'laint are true,
t*e 'laintiff is not entitled to relief as a &atter of la3?). In deter&inin+ 3*et*er to dis&iss t*e
,o&'laint, t*is Court &ust vie3 t*e 'leadin+s in a li+*t &ost favora)le to t*e 'laintiff, 3it* t*e
alle+ed fa,ts a,,e'ted as true. See Bennett Heating Air Con!itioning" #nc. v. NationsBank,
@
0@/ !d. 58A, 86@ A./d E0@ =5AA8) =A''ellate ,ourt ,onsidered t*e fa,ts to )e t*ose t*at 3ere
3ell 'leaded )( 'laintiffs, in,ludin+ t*ose fa,ts t*at ,ould )e fairl( inferred fro& t*e &atters
e2'ressl( alle+ed)H See also Rossaki, 8AE A./d at /70 =>In ,onsiderin+ a &otion to dis&iss for
failure to state a ,lai& under se,tion =))=/) of t*is $ule, a ,ourt &ust assu&e t*e trut* of all 3ell
'leaded fa,ts and all inferen,es t*at ,an reasona)l( )e dra3n fro& t*e&?)H Lubore, 86@ A./d at
E@6 =>ICourtJ s*all assu&e t*e trut* of all 3ell-'leaded relevant fa,ts as alle+ed in IPlaintiff1sJ
,o&'laint and all reasona)le inferen,es dra3n t*erefro& Isi,J?). A ,o&'laint &a( )e dis&issed
as a &atter of la3 for one of t3o reasons: =5) la,: of a ,o+niKa)le le+al t*eor(, or =/) insuffi,ient
fa,ts under a ,o+niKa)le le+al ,lai&. See Rossaki, 8AE A./d at /70. T*e standard of revie3 for a
&otion to dis&iss for failure to state a ,lai& u'on 3*i,* relief &a( )e +ranted is !e novo, as a
<uestion of la3. Robertson v. $ean %itter Reynol!s" #nc., 6@A F./d E07 =C.A.A =Cal.), 5AG@)H
See also Alon&o v. AC' Property Mgt." #nc., 8@0 F./d E6G, E6A =A
t*
Cir. 5AG5).
IV. ARGUMENT
%enerall(, P-IFA 'rovides t*at a *o&eo3ner *as t*e ri+*t to res,ind ,ertain ,ontra,ts
and transa,tions 3it*in a ,ertain ti&e, as 3ell as 'rote,tin+ *o&eo3ners in fore,losure fro&
)ein+ ta:en advanta+e of )( 'ro*i)itin+ ,ertain do,u&ents fro& )ein+ re,orded 3it*in a ,ertain
'eriod. Penalties for violations of P-IFA )( an individual in,lude a fine of F57,777 and u' to
t*ree (ears i&'rison&ent. See !d. Code 6-0/5=a) =/77E). T*e A,t, *o3ever, does not a''l( to
all !ar(land ,o&'anies involved in real estate transa,tions. Be,tion 6-07/=a)=E), !d. Code
=/77E), of t*e P-IFA ,ode reads:
7-302. Appl!"#l$% &' ()#$$l*. =a) (o )*o+ it !oes not apply. L E2,e't as
'rovided in su)se,tion =)) of t*is se,tion, t*is su)title does not a''l( to: +,- ."/
$$l* 0()1*1 ")$2&13*4 $& !&04)!$ #)(0*(( 0 $2* S$"$*5 62l* p*1'&1708
$$l* 0()1"0!* "04 (*$$l*7*0$ (*19!*(.
E
P-IFA e2'ressl( e2,ludes title ,o&'anies fro& lia)ilit( under t*is A,t unless t*e( are a,tin+ as
&ort+a+e ,onsultants. Title Co&'an( is a !ar(land ,or'oration li,ensed to ,ondu,t )usiness in
t*e Btate of !ar(land. T*e ,o&'an( 'rovides all as'e,ts of title and settle&ent servi,es,
in,ludin+ es,ro3 servi,es, title sear,* and e2a&ination, surve(, 're'aration of all re<uired le+al
do,u&ents and ot*er re<uired servi,es. T*rou+*out t*e ,ourse of t*e settle&ent 'ro,ess, Title
Co&'an( 3as a,tin+ in its ,a'a,it( as a title ,o&'an(. Plaintiff alle+es no fa,ts in *er
Co&'laint t*at 3ould ,onstrue Title Co&'an( to )e a,tin+ in an( 3a( ot*er t*an as a title
,o&'an(. Clearl(, P-IFA does not a''l( to Title Co&'an(. T*erefore, Count I of t*e
Co&'laint as to Title Co&'an( &ust )e dis&issed )e,ause Title Co&'an(, in its role as a title
,o&'an(, is not ,overed )( t*e P-IFA statute.
Title Co&'an( *ad no :no3led+e of an( fore,losure a+ree&ent )et3een Plaintiff and
T3o, and Title Co&'an( filed t*e deed in a,,ordan,e 3it* t*eir res'onsi)ilities to t*e )u(er and
t*e &ort+a+ee. Plaintiff, in *er ,o&'laint, does not alle+e t*at Title Co&'an( :ne3 of *er
fore,losure a+ree&ent )et3een *erself and T3o. Plaintiff onl( ,onfir&s t*at Title Co&'an(
a,ted 3it*in its ,a'a,it( as a title ,o&'an( or title insurer. Bin,e Title Co&'an( *ad no
:no3led+e of Plaintiff1 'ro'ert( )ein+ in fore,losure, t*ere 3as no reason t*at t*e( ,ould fall
under P-IFA. T*e ten da( res,ission 'eriod t*erefore is not a''li,a)le, and Title Co&'an( t*us
did not violate t*e P-IFA statute as alle+ed )( Plaintiff. See Co&'laint, M 06. T*erefore,
Plaintiff *as failed to state a ,lai& a+ainst Title Co&'an( for 3*i,* relief &a( )e +ranted under
P-IFA. A,,ordin+l(, t*is Court &ust +rant t*e &otion to dis&iss as to Count 5.
V. CONCLUSION
As s*o3n a)ove, Plaintiff ,an 'rove no set of fa,ts u'on 3*i,* relief ,an )e +ranted as to
8
Count I a+ainst Defendant Title Co&'an(. P-IFA does not a''l( to Title Co&'an( in its
,a'a,it( as a title ,o&'an( or title insurer, and even if t*e statute did a''l(, Plaintiff alle+es no
fa,ts to su''ort *er ,lai&s t*at Title Co&'an( violated t*e A,t. T*erefore, for t*e fore+oin+
reasons, Title Co&'an( res'e,tfull( re<uests t*at t*is -onora)le Court +rant its !otion to
Dis&iss Count I of t*e Co&'laint.
$es'e,tfull( su)&itted,
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Counsel to Defendant Title Co&'an(
CERTIFICATE OF SERVICE
I -E$E9" CE$TIF" t*at, on t*is 44t* da( of De,e&)er, /776, a ,o'( of t*e fore+oin+
!otion for Bu&&ar( Dud+&ent 9( Defendant Title Co&'an( Title 3as &ailed first-,lass,
'osta+e 're'aid to:
Counsel for Plaintiff Counsel for Defendant T3o
Defendant !ort+a+e Co&'an( Counsel for Defendant One
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Counsel to Defendant Title Co&'an(
6