Maryland Code § BR-8-405

Section BR-8-405
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(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.

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