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  • What is the goal of this change in HOA law

    From micky@21:1/5 to All on Tue Sep 20 08:56:26 2022
    Our HOA prez gets a newsletter for HOAs in Maryland. I believe the
    topic here applies to condos, and co-ops, but I know it applies to our
    HOA. The newsletter included this:

    This new law takes away an important tool from a community association’s ability to enforce judgments under $5,000 against delinquent owners.
    This law prohibits a court from ordering a debtor in a small claims
    action (under $5,000) to answer interrogatories or appear for a
    deposition about their income and assets, actions which were previously authorized to aid creditors in the enforcement of their judgments.


    1) I gather that "small claims action" doesn't refer to small claims
    court. Am I alone in being confused by the terminology?

    2) What is the goal of the legislature in prohibiting the court from
    ordering interroatories or a deposition about income and assets? Aren't
    these essential steps in the most common ways to collect a judgment?
    Don't they want judgments to be collected?

    Have you heard of this before, eliminating either of these tools?
    Are we to wait until we are owed more than 5000 just so we can use these
    tools? Are they trying to cut down the number of small lawsuits?

    For the specifics: Please see the text of bill numbers HB 349/SB 452, https://mgaleg.maryland.gov/2022RS/bills/hb/hb0349E.pdf https://mgaleg.maryland.gov/2022RS/bills/sb/sb0452E.pdf
    which amend § 11-704 of the Courts and Judicial Proceedings Article of
    the Maryland Code.

    --
    I think you can tell, but just to be sure:
    I am not a lawyer.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Elle N@21:1/5 to micky on Fri Sep 23 15:55:08 2022
    On Tuesday, September 20, 2022 at 10:56:29 AM UTC-5, micky wrote:
    Our HOA prez gets a newsletter for HOAs in Maryland. I believe the
    topic here applies to condos, and co-ops, but I know it applies to our
    HOA. The newsletter included this:

    This new law takes away an important tool from a community association’s ability to enforce judgments under $5,000 against delinquent owners.
    This law prohibits a court from ordering a debtor in a small claims
    action (under $5,000) to answer interrogatories or appear for a
    deposition about their income and assets, actions which were previously authorized to aid creditors in the enforcement of their judgments.


    1) I gather that "small claims action" doesn't refer to small claims
    court. Am I alone in being confused by the terminology?

    2) What is the goal of the legislature in prohibiting the court from
    ordering interroatories or a deposition about income and assets? Aren't
    these essential steps in the most common ways to collect a judgment?
    Don't they want judgments to be collected?

    Have you heard of this before, eliminating either of these tools?
    Are we to wait until we are owed more than 5000 just so we can use these tools? Are they trying to cut down the number of small lawsuits?

    For the specifics: Please see the text of bill numbers HB 349/SB 452, https://mgaleg.maryland.gov/2022RS/bills/hb/hb0349E.pdf https://mgaleg.maryland.gov/2022RS/bills/sb/sb0452E.pdf
    which amend § 11-704 of the Courts and Judicial Proceedings Article of
    the Maryland Code.


    The Maryland legislature meets only three months each year. This year, it met from
    about mid-January to mid-April. So far the signs are to me that the legislature passed HB 349 / SB 452 with overwhelming support.

    But then the Maryland Governor vetoed HB 349 / SB 452 in May, 2022.

    See:

    https://governor.maryland.gov/wp-content/uploads/2022/05/HB349-SB452-Small-Claims.pdf

    https://governor.maryland.gov/2022/05/27/governor-hogan-announces-additional-legislative-actions-3/

    https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0349

    https://www.naglezaller.com/blog/2022/09/special-client-letter-september-2022/

    https://www.washingtonpost.com/dc-md-va/2022/05/27/larry-hogan-vetoes-tenants-voters-union/


    Regarding small claims actions, it appears Maryland District Courts have jurisdiction
    over claims for $5000 and under.

    From what I see on the net, it appears Maryland legislators simply wanted to ease
    the burden on folks who owe money.

    The criticism of the bill appears to be in the vain of what Micky wrote. See https://mgaleg.maryland.gov/2022RS/fnotes/bil_0009/hb0349.pdf

    This law firm site, dated May, 2022, seems to be in error:

    https://www.lerchearly.com/news/2022-maryland-community-association-legislative-update/

    The Maryland Senate and House votes:

    https://mgaleg.maryland.gov/2022RS/votes/house/0305.pdf
    (101 yeas to 24 nays, out of 141)

    https://mgaleg.maryland.gov/2022RS/votes/Senate/1180.pdf
    (45 yeas, to 0 nays, out of 47)

    The Maryland Legislature can call a Special Legislative Session to
    override the governor's veto. I am not seeing any signs that a Special
    Session has been called for 2022.

    --- SoupGate-Win32 v1.05
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