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Dereggi Contstruction Company v. Mate3/7/2000
REPORTED
We must decide in this appeal whether the Circuit Court for Montgomery County erred in dismissing a Petition to Establish a Mechanics' Lien filed by DeReggi Construction Company and DeReggi Custom Homes, appellants, against Christian and Leanne Mate, appellees.
Appellants raise two issues on appeal:
I. Whether the trial court erred when it refused to enforce a contract to build a new home on the ground that the contractor was unlicensed, as required by the Montgomery County Code ("MCC"), when the contractor obtained a builder's license before performance began. II. Whether the trial court erred by refusing to enforce a building contract because it failed to comply with the Custom Homes Protection Act (the "Act")?
FACTS AND LEGAL PROCEEDINGS
Appellant DeReggi Construction Company is a general partnership comprised of John DeReggi and Marilyn DeReggi. Appellant Marilyn DeReggi does business under the name DeReggi Custom Homes and is a distributor of Lindal Cedar Homes.
Appellees are the owners of real property in Montgomery County, Maryland. On December 29, 1996, appellees entered into a Construction Agreement ("contract") with appellants for the construction of a custom home for the total sum of $251,067.
At the time the contract was executed, appellants did not have a builder's license. On January 22, 1997, appellants applied for a builder's license, which was issued by Montgomery County on February 10, 1997.
After the issuance of the license, appellants began work pursuant to the contract and appellees paid appellants $249,500. At some point, a disagreement arose between the parties. Appellees contended that the house was not completed, while appellants contended that appellees had not paid for numerous extras and changes that were done pursuant to the contract.
On February 27, 1998, appellants filed a "Petition to Establish and Enforce Mechanics' Lien" in the circuit court. DeReggi Construction Company requested that the court establish a lien in its favor in the amount of $86,028.19 for unpaid labor and materials. Additionally, DeReggi Custom Homes claimed that it was entitled to a lien for $6,471.81, the unpaid balance due under the contract.
Appellees answered and moved to dismiss the petition. Appellees claimed that the contract was void and unenforceable because appellants did not have the building contractor's license required under the MCC. Furthermore, appellees claimed that appellants failed to comply with the Act, which requires a builder before entering into a contract for the construction of a new home to make certain disclosures. See Md. Code (1974, 1996 Repl. Vol.), ยง 10-501, et seq. of the Real Property Article ("RP"). On October 2, 1998, appellees filed a "Supplemental Motion to Dismiss or for Summary Judgment" containing a number of exhibits including: a supporting memorandum; excerpts of deposition testimony; appellants' application for a building contractor's license; the actual license issued to appellants; and a letter from a Montgomery County official confirming that DeReggi Construction Company was licensed for the first time on February 10, 1997.
After a hearing, the circuit court granted appellees' motion to dismiss. In doing so, the court held that: (1) appellants were not licensed when the contract was signed; and (2) the disclosures required by the Act were not met. This appeal followed.
Additional facts will be added as appropriate in the course of our discussion.
DISCUSSION
a. Standard of Review
Summary judgment is appropriate where there is no dispute as to any mat
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