Donegal Assocs., LLC v. Christie-Scott, LLC

The Appellate Court of Maryland (under the then-named Maryland Court of Special Appeals) further defined the permitted-but-not-encouraged actions of self-help repossession in Donegal Assocs., LLC v. Christie-Scott, LLC, 248 Md. App. 448 (2020) by setting out a three-step inquiry approach: (1) Is the tenant in default under the terms of the lease; (2) Do the terms of the lease permit the landlord to retake possession in the event of a breach; and, (3) Can the repossession be done peacefully? Donegal, at 472.
First, look to the lease. Has the tenant defaulted under the terms of the lease? If the answer is yes, then the landlord must determine whether re-entry and reacquiring the premises after default and termination is expressly permitted under the lease terms.
Lastly, the landlord must consider whether reacquiring the premises can be performed peacefully. While self-help eviction naturally will create tension and disrupt a tenant’s peaceful business, K&K suggests avoiding “a confrontation possibly leading to violence.” See, K&K, at 179. Donegal provides a good example to follow. There, the landlord (Donegal) chose a day when the tenant’s business was closed, so as not to disrupt the ongoing operations. One employee, who happened to be present, was notified of the actions being taken, was permitted to recover her personal belongings, and the locks were changed.
While the answer may seem clear that self-help eviction is available to commercial landlords in Maryland, any decision to do so should not be made with tunnel vision. There are myriad consequences to consider and some to avoid. These include: termination of the lease upon default; proper disposal of the personal property remaining on the premises to avoid accusations of conversion of or damage to the property; potential vulnerability to claims of tortious interference with the tenant’s business relationships; or, the possibility of a suit by the tenant to recover whatever loss it has sustained as a result of the landlord’s acts, to name a few.
Upon weighing the options and caveats of self-help retaking of premises, the Maryland commercial landlord will be wise to follow the advice of the courts and avail itself of the statutory provisions to evict a defaulted tenant.