Jessica Butkera, a partner in the firm’s Maryland (Metropolitan D.C.) office, obtained a directed verdict on behalf of client DeVeau Construction, LLC (“DeVeau”) at the trial of a lawsuit filed against it by Kent MCAP Holdings LP (“Kent”), a large real estate investment firm in New York City. Upon appeal by Kent, Attorney Butkera secured an affirmation of the Circuit Court of Baltimore County’s ruling and the appeal was denied.
Kent owned a 450+ unit multi-family residential property in Baltimore County. Baltimore County received a grant from the United States Department of Housing and Urban Development (HUD) to fund certain lead hazard reduction activities in accordance with the Residential Lead-Based Paint Hazard Reduction Act (Title X), The Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-Assisted Programs, and awarded it to Kent for the purpose of lead hazard reduction of his property. Kent hired DeVeau to make the property lead-safe, though DeVeau indicated it would make the property lead-free. DeVeau performed abatement services based upon a scope of work created by Kent with the County based on pre-existing lead testing. DeVeau then hired co-defendant LeadTec Services, Inc. (“LeadTec”) to inspect its work and obtain lead-free certificates from the Maryland Department of the Environment (MDE).
Several years after the work was completed, a child residing in the property tested positive for elevated blood lead levels, prompting MDE to inspect 25 units at random for potential lead hazards. MDE identified lead in four units, invalidating the lead-free certificates. LeadTec then questioned the validity of another 80 certificates it had issued and proposed a plan for addressing the deficiencies in those 84 total units.
Kent, however, separately entered into an agreement with MDE and completed a large-scale renovation of the property. It then sued DeVeau and LeadTec for $2.3M in alleged lead reduction construction costs, environmental consulting fees, and legal fees. After years of discovery, the matter proceeded to trial in March of 2022 on various counts of breach of contract, negligence, and negligent misrepresentation.
At issue at trial was whether the areas of lead identified at random by MDE: 1) were in the scopes of work provided to DeVeau; 2) were properly tested by LeadTec; and 3) justified the renovation undertaken by Kent in response to MDE’s inspection. Also strongly disputed at trial was Kent’s ability to sufficiently prove damages. At the close of Kent’s case-in-chief, the Honorable Garret P. Glennon granted Ms. Butkera’s motion for judgment on all counts.
Kent appealed to the Appellate Court of Maryland arguing that the trial court erred in granting judgment in favor of DeVeau and LeadTec. Ms. Butkera briefed the appeal and handled the oral argument before a three-judge panel. The Appellate Court’s opinion affirming the ruling is attached.
If you have any questions about this case or any other premises liability or insurance defense litigation matters, please contact Jessica Butkera, Esq. at jbutkera@c-wlaw.com or by phone at (410) 420-0700.