Kapneck 14-16, LLC v. Bkeezy’s Speakeasy, LLC

Summary

The Supreme Court of Maryland held that a contractual waiver of the statutory right of redemption in a nonresidential lease does not violate Maryland public policy and is enforceable absent another contract defense. The Court also held that the pre-suit notice requirement in Real Property § 8-401(c)(1) applies only to residential tenancies. However, a summary ejectment action involving a nonresidential tenancy may be based only on rent that was due and unpaid under the lease, and not on charges first disclosed after suit was filed.

Holdings

1. A clause in a nonresidential lease waiving the tenant’s statutory right of redemption under Real Property § 8-401(h)(1) does not violate Maryland public policy and is enforceable absent another contract defense.
2. Real Property § 8-401(c)(1), which requires pre-suit notice of intent to file a summary eviction action and an opportunity to cure, applies only to residential tenancies and is not operative in a nonresidential tenancy.
3. A charge of additional rent is not 'due' and 'unpaid' under Real Property § 8-401 unless, when the complaint is filed, the tenant has prior notice of the charge’s nature and amount and has received the full amount of time provided by the lease to pay it. A summary ejectment action cannot be based on charges first disclosed after suit is filed.

Questions Presented

1. Whether a nonresidential landlord must provide the pre-suit notice required by Real Property § 8-401(c)(1) before filing a summary ejectment action.
2. Whether a nonresidential lease may waive the tenant’s statutory right of redemption under Real Property § 8-401(h)(1).
3. Whether additional-rent charges may support summary ejectment when, at the time the complaint was filed, the tenant had not received notice of the nature and amount of the charges or the full contractual period for payment.

Disposition

vacated