Article - Business Regulation

8-405.

(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 $10,000 to 1 claimant for acts or omissions of 1 contractor;

(2) more than [$50,000] $100,000 to all claimants for acts or omissions of
1 contractor unless, after the Commission has paid out [$50,000] $100,000 on account
of acts or omissions of the contractor, the contractor reimburses [$50,000] $100,000 to
the Fund;

(3) an amount for attorney fees, consequential damages, court costs,
interest, personal injury damages, or punitive damages; or

(4) an amount as a result of a default judgment in court.

(0 (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 3 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.