Friday, January 10, 2025

DISTRICT OF COLUMBIA COURT OF APPEALS EXPANDS ON SLIP AND FALL ACTIONS, HOLDING THAT HOSPITAL EMPLOYEE THAT CREATED HAZARDOUS CONDITION WAS ON CONSTRUCTIVE NOTICE OF SAME.

Carolyn L. Greene v. Children’s National Medical Center, No. 21-CV-0354

        Plaintiff Carolyn Greene slipped and fell while visiting her grandson at Children’s National Medical Center (“Children’s) and suffered severe and permanent injuries to her left upper extremity as a result of her fall.  She brought suit against Children’s, alleging: (1) that she slipped in liquid residue left behind by a ride-on floor scrubbing machine operated by one of its custodians; and (2) that there were no warning signs or “wet-floor” cones in the vicinity to alert her of the wet floor.  The hospital moved for summary judgment at the end of discovery, arguing that they were not on notice that the floor was wet where Greene slipped.  The trial court granted Children’s motion for summary judgment reasoning that Greene's claim required speculation to show that Children's was on notice of the dangerous condition that led to her fall, i.e. that liquid was left behind by the use of a floor scrubbing machine.  Greene timely appealed.

            To establish a claim for negligence in D.C., a plaintiff must show that: (1) the defendant owed a duty of care to the plaintiff; (2) the defendant breached that duty; and (3) the breach of duty proximately caused damage to the plaintiff.  There was no dispute that Children’s owed Greene a duty of care to protect against, and warn about, any hazards that it knew about and/or had constructive notice of same.  However, if Children’s, via its employees, was responsible for creating the dangerous condition that led to Greene’s injuries, that alone would put it on constructive notice of the hazard.  Therefore, the primary concern for the Appellate Court was to decide whether, based on the evidence presented in discovery, a reasonable jury could conclude that Greene slipped and fell on water that was left behind by a Children’s employee, i.e., whether Children’s created the dangerous condition that led to her injury such that Greene did not have to make an additional showing of notice.   

            Prior to the incident, Greene arrived at the hospital to visit her grandson around 8:00 am and walked around the majority of the fourth floor without seeing any liquid on the floor, wet floor signs, or scrubbing machines.  Around 9:00 am, Greene decided to leave her grandson’s room when she slipped and fell in the hallway between her grandson’s room and the nurse’s station. As she attempted to get up, she saw that the floor was wet behind her, with visible streaks of water both in front of and behind her.  After the fall, several employees came to help her, including a custodian who began to mop up the floor and stated, “where are the signs that should have been on the floor? I didn’t see any signs.”  As Greene was transported to a nearby nurse’s station, she noticed another hospital custodian, Parker, driving a ride-on auto scrubbing machine in other areas of the fourth floor.  Specifically, the machine left water on the floor behind him, in the same streaks that were visible to Greene where she fell moments before.  Greene was unable to ascertain whether the machine’s brushes were down but insisted that the employee was cleaning the floor and leaving water on both sides of the hall where it had been. The subject employee, Parker, was later asked by a manager whether he was operating the machine in the specific area where Green fell, and he denied it. In his deposition, Parker stated he was “dust mopping” and had placed caution signs on the floor to alert others he was dust mopping.  Further, he claimed that he “never got around to actually scrubbing the floors with the machine that day” and that he would not have done so before nine in the morning, as the sick children are usually sleeping. Lastly, Parker denied knowing anything about Greene’s slip and fall until the day after the incident; however, an email was presented establishing that Parker had spoken with a manager about Greene’s fall at or around 10:30 am the previous morning and that he claimed to have put up wet floor and/or caution signs.  Greene presented expert testimony regarding commercial cleaning systems and practices establishing that it was highly probable the liquid she slipped on came from the scrubbing machine because it is “quite a common occurrence when using that machine.” Further, Greene’s expert rejected the notion that Greene might have slipped in some liquid spilled by a patron, because there was liquid in a lot of areas, and it would not make logical sense for there to be spills in other areas of the fourth floor.

Ultimately, the Court held that Greene adduced sufficient evidence at trial for a reasonable jury to conclude that Children’s, via its employees, created the dangerous condition such that it was on constructive notice.  The Appellate Court was swayed by the following factors: (1) Greene saw the substance she slipped on and could roughly describe it as “streaks of water”; (2) Greene saw Parker on a nearby floor scrubber leaving similar water streaks around him; (3) she presented expert testimony that the streaks of water she fell on most likely came from a floor scrubber; (4) the email provided corroboration from a nurse that Parker had used the floor scrubber on the floor shortly before Greene’s fall; (5) another Children’s employee asked immediately after the incident where the sings “that should have been on the floor” were; and (6) Parker’s own testimony that he put wet floor signs in place after the dust mopping. 

Children’s argued that the evidence presented was all circumstantial evidence and there was no direct evidence that Greene either saw the machine brushes on the floor, or that anyone witnessed Parker even drive the floor scrubbing machine in the subject area in the minutes before her fall. In short, although there was no direct evidence that the scrubbing machine did not go by right where Greene fell, the Court held that the circumstantial facts could allow the jury to justify an inference that Greene slipped and fell on liquid negligently left behind by Parker, without adequate warning signs, and that these negligent conditions caused her injuries. Accordingly, the Court of Appeals reverse the entry of summary judgment in Children’s favor and remanded the case to proceed to trial.

Since “notice” is a fact-specific inquiry into every premises liability action, this holding provides further insight on what factors the Court finds relevant and what circumstantial evidence allows juries to make a reasonable inference of notice and/or control over a hazardous condition.

-       Regan Leavitt, Associate

 

Monday, December 23, 2024

Congratulations to the Six Rollins, Smalkin, Richards & Mackie LLC Attorneys That Have Been Named to the 2025 Maryland Super Lawyers and Rising Stars List!

The Maryland Super Lawyers and Rising Stars are exclusive lists of top-rated attorneys in specific practice areas who were chosen after thorough evaluation of numerous criteria.  Each year, approximately five percent (5%) of Maryland attorneys are selected as "Super Lawyers" and two-and-a-half percent (2.5%) are selected as "Rising Stars."  We could not be any prouder of our attorneys!

Super Lawyers

 James R. Andersen: Selected to Super Lawyers: 2017 – 2025

James R. Andersen is an attorney providing legal services covering Personal Injury - General: Defense, Insurance Coverage and Personal Injury - Products: Defense.

James Andersen, who practices law in Baltimore, Maryland, was selected to Super Lawyers for 2017 - 2025. This peer designation is awarded only to a select number of accomplished attorneys in each state. The Super Lawyers selection process takes into account peer recognition, professional achievement in legal practice, and other cogent factors.

Prior to becoming an attorney, he studied at University of Baltimore School of Law. He graduated in 1988. After passing the bar exam, he was admitted to legal practice in 1988.

Paul Donoghue: Selected to Super Lawyers: 2013 - 2018, 2020 - 2025

Paul Donoghue is a Workers' Compensation: Employer / Insurance attorney working in Baltimore, Maryland. Paul Donoghue works as an attorney at Rollins, Smalkin, Richards & Mackie, L.L.C. As one of a small number of attorneys selected to Super Lawyers, Paul Donoghue gained this recognition through professional achievement, peer recognition, and other distinguishing criteria. He graduated from University of Baltimore School of Law in 1985. He was subsequently admitted to legal practice in 1987 after passing the bar exam.

Tara A. Barnes: Selected to Super Lawyers: 2023 - 2025 | Selected to Rising Stars: 2015 - 2018

Tara A. Barnes, an attorney with Rollins, Smalkin, Richards & Mackie, L.L.C. in Baltimore, Maryland, helps clients address Civil Litigation: Defense situations.

She received legal training from The University of Maryland School of Law. She graduated from law school in 2004. Tara Barnes became licensed to practice law in 2004.

Tara Barnes was selected to Super Lawyers. The designation means that she is a top-rated attorney as recognized by peers. She was selected to Super Lawyers for 2023 - 2025.

Rising Stars

Ashley M. Bond: Selected to Rising Stars: 2021 – 2025

Ashley M. Bond is a top-rated attorney practicing in the Baltimore, Maryland area. Providing legal representation in Maryland for a variety of different issues, Ashley Bond was selected to Rising Stars for 2021 - 2025. She is admitted to practice before the courts in Maryland.

After completing undergraduate studies, Ashley M. Bond attended law school. Ashley Bond was enrolled at University of Baltimore School of Law. She earned a juris doctor degree in 2016. Ashley Bond was admitted to the practice of law in 2016.

Attorneys like Ashley M. Bond are recognized by their peers for their outstanding work and commitment to the spirit of the legal profession. Their knowledge of the law, professional work ethic, and advocacy on behalf of their clients allow them to stand out among other attorneys in the field.

Ashley Bond represents clients with Civil Litigation: Defense issues.

Benjamin A. Beasley: Selected to Rising Stars: 2022 - 2025

Benjamin Beasley is a top-rated attorney practicing in the Baltimore, Maryland area. Providing legal representation in Maryland for a variety of different issues, Benjamin Beasley was selected to Rising Stars for 2022 - 2025. He is admitted to practice before the courts in Maryland.

After completing undergraduate studies, Benjamin Beasley attended law school. Benjamin Beasley was enrolled at University of Baltimore School of Law. He earned a juris doctor degree in 2014. Benjamin Beasley was admitted to the practice of law in 2015.

Attorneys like Benjamin Beasley are recognized by their peers for their outstanding work and commitment to the spirit of the legal profession. Their knowledge of the law, professional work ethic, and advocacy on behalf of their clients allow them to stand out among other attorneys in the field.

Benjamin Beasley represents clients with Civil Litigation: Defense issues.

Regan S. Leavitt:  Selected to Rising Stars: 2025

Regan Leavitt attended law school and graduated from University of Baltimore School of Law in 2022. Regan Leavitt began practicing law in 2022.

Regan Leavitt is an attorney at Rollins, Smalkin, Richards & Mackie, L.L.C., helping people with Insurance Coverage issues. Rollins, Smalkin, Richards & Mackie, L.L.C. has an office in Baltimore, Maryland, serving the local community. Regan Leavitt was selected to Rising Stars for 2025. Rising Stars is an exclusive list of top-rated attorneys in specific practice areas who were chosen after thorough evaluation of numerous criteria.



Please Congratulate Partner Paul Donoghue on His Retirement!

As we near the end of 2024, RSRM sends well wishes for a happy retirement to Partner Paul Donoghue.  Paul devoted 34 years of his life to the growth of our firm, and it’s fair to say that we wouldn’t be where we are without him.

For those who were lucky enough to work with him, you’ll recall how Paul was consistently the first person in the office every morning.  He often started his day sipping coffee and jamming to Motown hits as he worked his way through his files.  Paul spent most of his career handling workers’ compensation claims, which often meant that he spent most of his days reading large volumes of medical records.  For the average person, reviewing medical records may seem like a dry task.  Paul, however, never shied away from rolling up his sleeves.  In mentoring younger associates, he would often pass on the knowledge bestowed upon him by the partners before him, “Paul, there’s dirt in every file, and it’s your job to find it.”

He was meticulous in his work effort, intentional with his words, and creative in his problem solving.  While many attorneys are known for being well-organized, Paul was a true expert in the field.  He was never too busy to ensure that each paper was properly filed, and each folder was placed in his preferred order. It was truly a work of art to watch him maintain that level of organization through all the chaos that comes with running a litigation law firm.

 Above all, Paul will be remembered for the way he cared for and treated others.  When it came to resolving disputes with opposing counsel, Paul attacked the issues head on by always picking up the phone and talking the issues through.  Inside the office, Paul showed a true curiosity into the lives of his colleagues and staff.  He was the type of individual who remembered the small things about your life and made sure to reach out to you if you were going through a hard time.  No matter your experience or rank in the firm, Paul made sure that you had a voice and felt heard about any issue that may be bothering you.  There’s not much more that you could ask for from a mentor.

 As Paul’s time with RSRM comes to an end, we are truly grateful for all that he’s poured into this firm over the years.  We hope that this next chapter of his life is filled with lots of traveling and family time, for the hardest working attorney deserves the most relaxing retirement.  You will be missed, Paul.

Wednesday, December 18, 2024

Congratulations to Partner, Ashley Bond, on recent win in the Circuit Court for Baltimore City!

Partner Ashley Bond recently represented an individual in the Circuit Court for Baltimore City who was accused of negligence for failing to stop for a red light and causing a five-car pileup.  Mrs. Bond’s client was sued by two plaintiffs who claimed that they were injured in the motor vehicle accident. Mrs. Bond’s client admitted that he caused the motor vehicle accident, therefore the only issue for the jury to decide at trial was what money, if any, plaintiffs should be awarded for their injuries.  Throughout trial, Mrs. Bond engaged in vigorous cross-examinations of both plaintiffs and their doctors, pointing out various inconsistencies in their testimony and highlighting plaintiffs’ pre-existing medical conditions.  Mrs. Bond also produced surveillance footage of one of the plaintiffs engaging in activities that the plaintiff previously claimed she could not do.  At the conclusion of trial, plaintiffs collectively asked the jury to award them close to $700,000 for medical bills, lost wages, and noneconomic damages.  Instead, the jury found that the first plaintiff was not injured in the motor vehicle accident and therefore awarded him $0.  As for the second plaintiff, the jury declined to award her any money for lost wages, but did award her medical bills and just $10,000 in noneconomic damages. This award for the second Plaintiff was over $500,000 less than what she requested at trial.  

Congratulations to Partner Ashley Bond on her success at trial!

Tuesday, October 22, 2024

Supreme Court of Maryland Holds That Financial Advisor Exposed to Mold Cannot Recover Compensation for an Occupational Disease under Md. Code Ann., Labor & Employment § 9-502

In the Matter of Morgan Stanley and Co. Inc., et al.  No. 1554, September Term, 2022.  Filed: May 30, 2024.  Opinion by Graeff, J.

Henry Gundlach was employed as a financial advisor at Morgan Stanley since 2008.  During Mr. Gundlach’s period of employment with Morgan Stanley, his office was located in two places, i.e., what he testified/described as one located in Building ‘B’ (for 6.5 to 7 years) and Building ‘A’ (for an additional 3.5 years).  In 2012, Mr. Gundlach began to suffer respiratory  problems and a persistent cough.  Mr. Gundlach saw his physician that ordered x-rays in April 2014, which revealed “pulmonary infiltrates.”  Mr. Gundlach followed up with a pulmonologist who researched the cause of Mr. Gundlach’s respiratory problems/persistent cough.  The pulmonologist eventually suggested that exposure to mold might be the cause and a search of the claimant’s office confirmed the presence of mold.

On May 29, 2019, Mr. Gundlach filed two claims with the Worker's Compensation Commission; the first alleging he sustained an occupational disease and a second claim alleging he sustained an accidental injury arguing that he was exposed to mold in his workplace and consequently developed pneumonitis (inflammation of the lungs).  After a hearing, the Commission’s order found in favor of claimant ruling that Mr. Gundlach had sustained an occupational disease of pneumonitis arising out of and in the course of employment.[1]  The employer/insurer appealed to the Circuit Court for Anne Arundel County on the issue of whether Mr. Gundlach’s condition was related to his employment as a ‘financial advisor’ for Morgan Stanley.

At trial in the Circuit Court, counsel for the employer argued, inter alia, that ‘pneumonitis is not consistent with exposure that is attributable to his [Mr. Gundlach] type of employment as a financial advisor.  At trial, Mr. Gundlach testified that “as a financial advisor, the office was the base of operations.  It is where you are supervised."  Additionally, he testified that his office was where his desk, records and phone were located, and a lot of his job was spent conversing with clients on the telephone.  However, when Mr. Gundlach was asked “whether there was anything about his job, itself, the duties of a financial advisor, a senior vice president, a portfolio manager, that would cause him to have pneumonitis?”  Mr. Gundlach answered “no”.  At the close of all the evidence, the employer/insurer moved for judgment arguing that as a matter of law, Mr. Gundlach had not sustained an occupational disease that was compensable under the Maryland Workers Compensation Act, specifically 9-502(d)(1)(ii).  The jury found in favor of the claimant Mr. Gundlach.  The employer/insurer appealed to the Court of Special Appeals which reversed the ruling of the Circuit Court reasoning in agreement with the employer/insurer that “occupational diseases are very specifically limited and circumscribed.  They are a creature completely of statute. Compensation for an occupational disease is subject to LE §9-502(d), which is a limitation on liability, and an occupational disease that causes disability is compensable only if it is due to the nature of the employment or if manifestations of the disease are consistent with exposure to an agent attributable to the type of employment.”  Basically, there was nothing about Mr. Gundlach’s job as a financial advisor that was linked to biologic, chemical or physical agent, or, in this example, mold, even if his office as a financial advisor tested positive for the presence of mold.  "If there was mold in this specific job (office space), that has nothing to do with Mr. Gundlach’s type of employment."

The Appellate Court discussed examples of employees that suffered a disease that is due to the nature of an employment in which hazards of the occupational disease exist, i.e., degenerative meniscal tears qualified as an occupational disease as a matter of law because the occupation of a paramedic requires frequent kneeling and stress in the knee, and these hazards led to the development of degenerative knee conditions (Black and Decker Corp. V. Humbert, 189 Md. App. 171, 191 (2009).  Shoulder impingement syndrome was a compensable occupational disease because repeated overhead arm motions are a hazard inherent in the occupation of an electrician (see Davis v. Dyncorp, 336 Md. 226, 237 (1994).  Mental disease alleged to be the result of harassment from fellow employees was not an occupational disease because harassment by fellow employees is not a hazard within the nature of the employment of a computer data operator (see Lettering Unlimited v. Guy, 321 Md. 305, 308-12 (1990).

The Appellate Court of Maryland reversed the Circuit Court holding that in order to obtain compensation for an occupational disease in a worker’s compensation case under Md. Code Ann., Labor & Employment §9-502(d)(1)(ii), the employee must prove exposure to a biological, chemical or physical agent that is a distinctive feature of the type of work performed, as opposed to  a specific condition at the employee’s particular workplace … exposure must be a recognized risk of employment, it is not enough that the ailment is caused by the specific place in which the claimant happens to work. (see Dando v. Binghamton Bd. Of Educ., 490 N.Y.S.2d 360, 361 (N.Y. App. Div.1985).

- Milton Warren, Of Counsel

[1] The Commission also issued an Order finding that Mr. Gundlach did not sustain an accidental injury arising out of his employment on the second claim.

Tuesday, September 24, 2024

Supreme Court of Maryland Approves New Program to Expand Voir Dire Process in Maryland Courts.

Earlier this month, the Supreme Court of Maryland approved the recommendation of the Maryland Judiciary's Standing Committee on Rules of Practice and Procedure (the “Rules Committee”) to adopt a provisional program that will allow attorneys to utilize more strategic tactics during jury selection and assemble jury panels in a way that, previously, Maryland courts have not allowed.

Currently, the vast majority of state courts, as well as all federal courts, make it mandatory for trial judges to ask voir dire questions proposed by parties if the questions will lead to “the intelligent exercise of peremptory challenges.” Under this approach, parties are allowed to ask probing questions during the voir dire process to help the parties make a more informed decision about whether to strike a prospective juror.

Maryland, by contrast, has employed a “limited” voir dire process which provides the parties with limited information about the potential jurors and relies heavily on prospective jurors’ ability to assess their own biases. As the Supreme Court of Maryland has explained, in Maryland, “‘the sole purpose of voir dire is to ensure a fair and impartial jury by determining the existence of cause for disqualification, and not as in many other states, to include the intelligent exercise of peremptory challenges.’”  Collins v. State, 452 Md. 614, 622, 158 A.3d 553, 558 (2017) (citations and internal quotation marks omitted).  Unless a proposed voir dire question is directed at a specific cause for juror disqualification—meaning, the question is “reasonably likely” to uncover either prospective juror's (1) failure to meet minimum statutory qualifications (e.g., age, felony convictions, etc.) or (2) inability to be impartial—then a trial judge in Maryland is not required to ask the proposed question during voir dire. Kazadi v. State, 467 Md. 1, 44-45, 223 A.3d 554 (2020) (cleaned up); Pearson v. State, 437 Md. 350, 357, 86 A.3d 1232, 1235-36 (2014) (cleaned up). Put another way, trial judges in Maryland are routinely allowed to reject proposed voir dire questions when such questions are designed to probe and “fish” for information that will help the parties develop a basis to disqualify a juror.

The newly approved pilot program follows the majority approach to voir dire and will allow parties to “use the examination of a prospective juror to obtain information that may provide guidance for the informed exercise of peremptory challenges” in both civil and criminal cases. Although the Rules Committee has recommended that trial judges will still retain “supervision and control” of the voir dire process, the program will allow attorneys to propose broader voir dire questions that, historically, have been rejected by Maryland courts—questions designed to probe for information that may ultimately aid in the informed “exercise of peremptory challenges” of potential jurors. Pearson, 437 Md. at 357, 86 A.3d at 1235-36.

This pilot program comes shortly after the 2024 Maryland General Assembly raised concerns about Maryland's voir dire process, nearly taking control of the issue after the Senate voted to codify changes to the voir dire process. On April 11, 2024, following the state legislature's attempt to modify the voir dire process, Chief Justice Fader requested that the Rules Committee—the body that was specially created to help Maryland's highest Court in the exercise of its rulemaking authority—expeditiously explore and recommend changes to the voir dire rules. Consequently, the Rules Committee held meetings in May and June 2024, allowing comment from advocates in favor of the majority approach to voir dire and those in favor of Maryland's “limited” voir dire.  Ultimately, in June 2024, the Rules Committee voted to expand the voir dire process on an experimental basis, and, in September 2024, the Supreme Court of Maryland approved the committee's recommendation.

Currently, the Rules Committee has not published the full scope or parameters of the pilot program. However, according to Chief Justice Fader, the program will cover a “representative sample of circuit courts across the state” and is expected to last until the end of 2025. Only time will tell whether or not the program will be adopted on a permanent basis and/or applied statewide, bringing Maryland into alignment with the vast majority of other states, as well as the federal courts.

 - Audreina Blanding, Associate


Link to Article: https://thedailyrecord.com/2024/09/13/md-supreme-court-approves-pilot-to-expand-lawyers-role-in-voir-dire/

 

Link to June 2024 Rules Committee Meeting: https://www.mdcourts.gov/sites/default/files/import/rules/agenda/agenda.pdf

 

2024 Maryland General Assembly Bills

·         Senate Bill 827 (Policy Note): https://mgaleg.maryland.gov/2024RS/fnotes/bil_0007/sb0827.pdf

·         House Bill 1079 (Policy Note): https://mgaleg.maryland.gov/2024RS/fnotes/bil_0009/hb1079.pdf

 

Other Articles

·         https://www.msba.org/site/site/content/News-and-Publications/News/General-News/Maryland-Rules-Committee-Recommends-Jury-Examination-Expansion.aspx#:~:text=Following%20Chief%20Justice%20Fader's%20April,discuss%20additional%20methods%20of%20identifying

Friday, July 12, 2024

The Appellate Court of Maryland Holds That an Anti-assignment Clause Can Void the Attempted Assignment of an Insurance Claim.

In re Featherfall Restoration, LLC., 261 Md. App. 105 (2024)

This matter is about an insurance policy dispute between Travelers and two (2) insurance policy holders G.K. and K.K. (the Insured). The insurance policy had a provision expressly stating that “[a]ssignment of this policy will not be valid unless we [Travelers] give our written consent.” On May 20, 2020, the Insured notified Travelers of purported wind and hail damage to their home’s roof that they believed occurred on June 2, 2019. On May 20, 2020, prior to filing a claim, the Insured hired Featherfall Restoration, LLC (“Featherfall”) to repair the roof. On June 2, 2020, Travelers sent a claim representative to inspect and evaluate the damages. On June 19, 2020, Travelers sent a letter to the Insured notifying them of the denial of the claim, because the Travelers representative identified signs of wear to the roof shingles but did not find wind or hail damage on the roof or other exterior portions of the house. On that same day, Featherfall emailed Travelers an assignment of claims document and a legal opinion that the assignment was lawful despite the anti-assignment provision drafted by Featherfall’s legal counsel. Featherfall tried to discuss the denial with Travelers representatives, but they declined to discuss the denial and took the position that the anti-assignment clause meant  Featherfall had no interest in the claim.

Featherfall filed an administrative complaint against Travelers with the Maryland Insurance Administration (“MIA”). Featherfall argued that it had the same rights under the policy as the insured including the right to discuss the denial of the claim. Travelers again took the position that the anti-assignment clause was valid, enforceable, and consistent with Maryland insurance law. MIA found that Travelers was only obligated to pay and adjust claims in accordance with Maryland laws and the policy. Further, the MIA found that Travelers actions were not arbitrary and capricious, lacking in good faith, or in violation of the insurance article. On judicial review, the Circuit Court for Baltimore City affirmed MIA’s decision and denied Featherfall’s request for a declaratory judgment.

        On appeal Featherfall argued that the anti-assignment clause only applied to the entire policy, not a claim; and that Maryland allows post-loss assignments because they are the same as any chosen action. Travelers argued that the plain language in the contract invalidated the assignment, and if the Court found that it was legal to assign the claim without prior approval it would make the contract toothless.

        The Appellate Court of Maryland held that the anti-assignment clause provision was enforceable and did not run afoul of Maryland insurance law. First, the Court found that in the most recent cases considered by the Maryland Supreme Court it found that anti-assignment clauses were valid even if it was a post-loss assignment. For comparison, the Court also noted that the Maryland General Assembly added provisions in the Insurance Article that expressly require health insurers to recognize all assignments but did not create a similar provision for property insurance companies. Additionally, the Court found that Travelers’ interpretation was correct and reading the contract to allow for any assignment as long as it was not the whole policy, would make the clause meaningless, which violates Maryland law that forbids courts from interpreting a clause in contracts in such a way that it is rendered meaningless.  Finally, the Court found that Featherfall did not have standing to bring a MIA claim in this matter, because if the assignment was void, than any interest and rights that flowed from that assignment, including the right to a MIA hearing, were not valid.

Fernando D. Kirkman, Esquire (Associate)