Md. Code, Bus. Reg. § 8-405
Current with changes from the 2024 Legislative Session, chs. 2--407, effective on or before 7/1/2024
Section 8-405 - Claims against Fund(a) Subject to this subtitle, an owner may recover compensation from the Fund for an actual loss that results from an act or omission by a licensed contractor or a violation of § 8-607(4) of this title as found by the Commission or a court of competent jurisdiction.(b) For purposes of recovery from the Fund, the act or omission of a licensed contractor includes the act or omission of a subcontractor, salesperson, or employee of the licensed contractor, whether or not an express agency relationship exists.(c) A claimant shall comply with a written agreement to submit a dispute to arbitration before seeking recovery from the Fund.(d) The Commission may deny a claim if the Commission finds that the claimant unreasonably rejected good faith efforts by the contractor to resolve the claim.(e) The Commission may not award from the Fund:(1) more than $30,000 to one claimant for acts or omissions of one contractor;(2) more than $250,000 to all claimants for acts or omissions of one contractor unless, after the Commission has paid out $250,000 on account of acts or omissions of the contractor, the contractor reimburses $250,000 to the Fund;(3) an amount for attorney fees, consequential damages, court costs, interest, personal injury damages, or punitive damages;(4) an amount as a result of a default judgment in court; or(5) an amount in excess of the amount paid by or on behalf of the claimant to the contractor against whom the claim is filed.(f)(1) A claim against the Fund based on the act or omission of a particular contractor may not be made by: (i) a spouse or other immediate relative of the contractor;(ii) an employee, officer, or partner of the contractor; or(iii) an immediate relative of an employee, officer, or partner of the contractor.(2) An owner may make a claim against the Fund only if the owner:(i) resides in the home as to which the claim is made; or(ii) does not own more than three residences or dwelling places.(g) A claim shall be brought against the Fund within 3 years after the claimant discovered or, by use of ordinary diligence, should have discovered the loss or damage.Amended by 2023 Md. Laws, Ch. 415, Sec. 1, eff. 7/1/2023.Amended by 2022 Md. Laws, Ch. 647, Sec. 1, eff. 7/1/2022.Amended by 2022 Md. Laws, Ch. 646, Sec. 1, eff. 7/1/2022.