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PARRIS N. GLENDENING, Governor
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H.B. 863
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(1) [a] A guarantor voluntarily to establish procedures whereby a
guaranty dispute is fairly and expeditiously settled through informal dispute
settlement procedures; AND
(2) A PROVIDER VOLUNTARILY TO ESTABLISH PROCEDURES WHEREBY A
SERVICE CONTRACT DISPUTE IS FAIRLY AND EXPEDITIOUSLY SETTLED THROUGH
INFORMAL DISPUTE SETTLEMENT PROCEDURES.
(B) A guarantor OR PROVIDER who establishes informal dispute settlement
procedures may elect to settle guaranty disputes OR SERVICE CONTRACT DISPUTES,
AS THE CASE MAY BE, in cooperation with any private agency or the Consumer
Protection Division of the Attorney General's office.
[(b)] (C) The guarantor OR PROVIDER is liable to the person guaranteed for
any wrongful breach of a guaranty OR WRONGFUL BREACH OF A SERVICE CONTRACT,
AS THE CASE MAY BE, and is under a duty to:
(1) Perform as required under this subtitle; and
(2) Compensate the person guaranteed for all reasonable incidental
expenses incurred as a result of the breach.
[(c)] (D) (1) If the guarantor OR PROVIDER breaches any [of his] duties
UNDER THIS SUBTITLE, the person guaranteed may file an action in any court of
competent jurisdiction.
(2) (I) Except as provided in paragraph (3) of this subsection, if the
person guaranteed prevails in an action filed under this subsection, the court shall
include in the amount of the judgment a sum equal to the aggregate amount of costs
and expenses which have been reasonably incurred by the person guaranteed for or in
connection with the action filed.
(II) These costs and expenses shall include attorney's fees based on
actual time expended, unless the court finds that an award of attorney's fees would be
inappropriate.
(3) The person guaranteed is not entitled to costs and expenses, if:
(i) The guarantor OR PROVIDER affords the person guaranteed a
reasonable opportunity to settle informally in accordance with subsection (a) of this
section; and
(ii) The person guaranteed fails to so settle.
14-408.
(a) (1) In addition to making a guaranty, the guarantor may [sell] ENTER
INTO a service contract at the time of the sale or at any other time [to] WITH the
person guaranteed.
(2) IN ADDITION TO ENTERING INTO A SERVICE CONTRACT, THE
PROVIDER MAY MAKE A GUARANTY AT THE TIME OF THE SALE OR AT ANY OTHER
TIME TO THE PERSON GUARANTEED.
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- 5245 -
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