# Courts and Judicial Proceedings (GCJ)

## Title 5. Limitations, Prohibited Actions, and Immunities

### Subtitle 4. Immunities and Prohibited Actions -- Businesses, Associations, and Charities

#### Section 5-401

(a)

  (1) A covenant, promise, agreement, or understanding in, or in connection with or collateral to, a contract or agreement relating to architectural, engineering, inspecting, or surveying services, or the construction, alteration, repair, or maintenance of a building, structure, appurtenance or appliance, including moving, demolition, and excavating connected with those services or that work, purporting to indemnify the promisee against liability for damages arising out of bodily injury to any person or damage to property caused by or resulting from the sole negligence of the promisee or indemnitee, or the agents or employees of the promisee or indemnitee, is against public policy and is void and unenforceable.

  (2) A covenant, a promise, an agreement, or an understanding in, or in connection with or collateral to, a contract or an agreement relating to architectural, engineering, inspecting, or surveying services, or the construction, alteration, repair, or maintenance of a building, a structure, an appurtenance, or an appliance, including moving, demolition, and excavating connected with those services or that work, purporting to require the promisor or indemnitor to defend or pay the costs of defending the promisee or indemnitee against liability for damages arising out of bodily injury to any person or damage to property caused by or resulting from the sole negligence of the promisee or indemnitee, or the agents or employees of the promisee or indemnitee, is against public policy and is void and unenforceable.

  (3) This subsection does not affect the validity of any insurance contract, workers' compensation, any general indemnity agreement required by a surety as a condition of execution of a bond for a construction or other contract, or any other agreement issued by an insurer.

(b)

  (1)

    (i) In this subsection the following words have the meanings indicated.

    (ii) "Motor carrier" has the meaning stated in Sec. 11-134.2 of the Transportation Article.

    (iii)

      (1) "Motor carrier transportation contract" means a contract, agreement, or understanding concerning:

      (A) The transportation of property for compensation or hire by a motor carrier;

      (B) The entrance on property by a motor carrier for the purpose of loading, unloading, or transporting property for compensation or hire; or

      (C) A service incidental to an activity described in item A or B of this subsubparagraph, including storage of property.

      (2) "Motor carrier transportation contract" does not include:

      (A) The Uniform Intermodal Interchange and Facilities Access Agreement administered by the Intermodal Association of North America, as amended by the Intermodal Interchange Executive Committee; or

      (B) Other agreements providing for the interchange, use, or possession of intermodal chassis, containers, or other intermodal equipment.

    (iv) "Promisee" includes an agent, employee, servant, or independent contractor who is directly responsible to the promisee, other than a motor carrier that is a party to a motor carrier transportation contract with the promisee, and an agent, employee, servant, or independent contractor directly responsible to that motor carrier.

  (2) Notwithstanding any other provision of law, a provision, clause, covenant, or agreement contained in, collateral to, or affecting a motor carrier transportation contract that purports to indemnify, defend, or hold harmless, or has the effect of indemnifying, defending, or holding harmless, the promisee against liability for loss or damage resulting from the negligence or intentional acts or omissions of the promisee is against public policy and is void and unenforceable.

#### Section 5-401.1

(a)

  (1) A release of the claim of an injured individual for damages resulting from a tort, signed by the injured individual within 30 days of the infliction of the injuries without the assistance or guidance of an attorney at law, and any power of attorney to or contract of employment with an attorney at law, with reference to recovery of damages for the tort, signed by the individual within  30 days after the infliction of the injuries, shall be voidable at the option of the injured individual within 60 days after the day on which the individual signed the document.

  (2)

    (i) Notice that a release is voided under this subsection by the injured individual shall be:

      (1) In writing; and

      (2) Accompanied by the return of any money paid to the injured individual as a result of the signing of the release.

    (ii) The release is void from the date that the notice is mailed.

(b) A person whose interest is or may become adverse to an injured individual who is confined to a hospital or sanitarium as a patient may not, within 15 days from the date of the occurrence causing the patient's injury:

  (1) Negotiate or attempt to negotiate a settlement with the patient;

  (2) Obtain or attempt to obtain a general release of liability from the patient; or

  (3) Obtain or attempt to obtain any statement, either written or oral from the patient, for use in negotiating a settlement or obtaining a release.

(c) Any settlement agreement entered into or any general release of liability made by any individual who is confined in a hospital or sanitarium after the individual incurs a personal injury may not be used in evidence in any court action relating to the injury and may not be used for any purpose in any legal action in connection with the injury if the settlement agreement or release is obtained contrary to the provisions of subsection (b) of this section.

(d) A release executed by an individual who has sustained personal injuries does not discharge a subsequent tort-feasor:

  (1) Who is not a party to the release; and

  (2)

    (i) Whose responsibility for the individual's injuries is unknown at the time of execution of the release; or

    (ii) Who is not specifically identified in the release.

#### Section 5-401.2

(a)

  (1) In this section, "recreational facility" means a commercial recreational facility, a commercial athletic facility, or an amusement attraction.

  (2) "Recreational facility" includes:

    (i) Gymnasiums; and

    (ii) Swimming pools.

  (3) "Recreational facility" does not include:

    (i) A lodging establishment, as defined in Sec. 15-201 of the Business Regulation Article, unless the lodging establishment owns, maintains, or operates a recreational facility that is available for use by the general public; or

    (ii) A unit of State or local government that leases land or facilities to a recreational facility.

(b) This section does not apply to a health club services agreement, as defined in Sec. 14-12B-01 of the Commercial Law Article, for services to be rendered for an adult.

(c) Any provision in a contract or agreement relating to the use of a recreational facility that purports to limit the recreational facility's liability, or release the recreational facility from or indemnify or hold harmless the recreational facility against liability, for injury caused by or resulting from the negligence or other wrongful act of the recreational facility or its agents or on-duty employees is against public policy and is void and unenforceable.

(d) This section may not be interpreted to affect, extend, or limit the liability of a governmental entity for a tort or other claim subject to Title 12, Subtitle 1 of the State Government Article or Subtitle 3 of this title.

#### Section 5-402

(a) A merchant or an agent or employee of the merchant who detains or causes the arrest of any person shall not be held civilly liable for detention, slander, malicious prosecution, false imprisonment, or false arrest of the person detained or arrested, whether the detention or arrest takes place by the merchant or by his agent or employee, if in detaining or in causing the arrest of the person, the merchant or the agent or employee of the merchant had, at the time of the detention or arrest, probable cause to believe that the person committed the crime of "theft," as prohibited by Sec. 7-104 of the Criminal Law Article, of property of the merchant from the premises of the merchant.

(b) An owner or lessee of a motion picture theater or an agent or employee of the owner or lessee who detains or causes the arrest of any person may not be held civilly liable for detention, defamation, malicious prosecution, false imprisonment, or false arrest of the person detained or arrested, if in detaining or causing the arrest of the person, the owner, lessee, agent, or employee had, at the time of the detention or arrest, probable cause to believe that the person committed in the motion picture theater a violation of Sec. 7-308(e) of the Criminal Law Article.

#### Section 5-403

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Agricultural operation" means an operation for the processing of agricultural crops or on-farm production, harvesting, or marketing of any agricultural, horticultural, silvicultural, aquacultural, or apicultural product that has been grown, raised, or cultivated by the farmer.

  (3)

    (i) "Commercial fishing or seafood operation" means an operation for the harvesting, storage, processing, marketing, sale, purchase, trade, or transport of any seafood product.

    (ii) "Commercial fishing or seafood operation" includes the delivery, storage, and maintenance of equipment and supplies and charter boat fishing and related arrival and departure activities, equipment, and supplies.

  (4) Notwithstanding Sec. 5-101 of the Natural Resources Article, "silvicultural operation" means implementation of forestry practices, including the establishment, composition, growth, and harvesting of trees.

(b)

  (1) This section does not:

    (i) Prohibit a federal, State, or local government from enforcing health, environmental, zoning, or any other applicable law;

    (ii) Relieve any agricultural, silvicultural, or commercial fishing or seafood operation from the responsibility of complying with the terms of any applicable federal, State, and local permit required for the operation;

    (iii) Relieve any agricultural, silvicultural, or commercial fishing or seafood operator from the responsibility to comply with any federal, State, or local health, environmental, and zoning requirement; or

    (iv) Relieve any agricultural, silvicultural, or commercial fishing or seafood operation from liability for conducting an agricultural or a commercial fishing or seafood operation in a negligent manner.

  (2) This section does not apply to:

    (i) Any agricultural operation that is operating without a fully and demonstrably implemented nutrient management plan for nitrogen and phosphorus if otherwise required by law; or

    (ii) Any commercial fishing or seafood operation that is not in compliance with applicable federal, State, and local laws.

(c) If an agricultural, a silvicultural, or a commercial fishing or seafood operation has been under way for a period of 1 year or more and if the operation is in compliance with applicable federal, State, and local health, environmental, zoning, and permit requirements relating to any nuisance claim and is not conducted in a negligent manner:

  (1) The operation, including any sight, noise, odors, dust, or insects resulting from the operation, may not be deemed to be a public or private nuisance; and

  (2) A private action may not be sustained on the grounds that the operation interferes or has interfered with the use or enjoyment of other property, whether public or private.

(d)

  (1) This section does not create, and may not be construed as creating, a new cause of action or substantive legal right against a person who is engaged in an agricultural, a silvicultural, or a commercial fishing or seafood operation.

  (2) This section does not affect, and may not be construed as affecting, any defenses available at common law to a defendant who is engaged in an agricultural, a silvicultural, or a commercial fishing or seafood operation and subject to an action for nuisance.

(e)

  (1) This subsection does not apply to an action brought by a government agency.

  (2) If a local agency is authorized to hear a nuisance complaint against an agricultural or a commercial fishing or seafood operation, a person may not bring a nuisance action against an agricultural or a commercial fishing or seafood operation in any court until:

    (i) The person has filed a complaint with the local agency; and

    (ii) The local agency has made a decision or recommendation on the complaint.

  (3) A decision of a local agency on a nuisance complaint against a commercial fishing or seafood operation may be appealed to a circuit court in accordance with Title 7, Chapter 200 of the Maryland Rules.

  (4) If there is no local agency authorized to hear a nuisance complaint against an agricultural operation, a person may not bring a nuisance action against an agricultural operation in any court until:

    (i) The person has referred a complaint to the State Agricultural Mediation Program in the Department of Agriculture under Title 1, Subtitle 1A of the Agriculture Article; and

    (ii) The Department certifies that mediation has been concluded.

#### Section 5-403.1

(a) In this section, "sport shooting range" means an area designed and used for trapshooting, skeetshooting, or other target shooting.

(b) This section applies only to private nuisance actions and does not apply to public nuisance actions.

(c) If there has been no shooting activity at a sport shooting range for a period of 3 consecutive years, the date of resumption of shooting activity is considered the date of the establishment of a sport shooting range for purposes of this section.

(d)

  (1) Except as provided in paragraph (2) of this subsection, a person may not bring a civil nuisance action for noise against a person who owns, operates, or uses a sport shooting range located within the vicinity of the property of the person bringing the action if the sport shooting range was established as of the date the person acquired the property.

  (2) This section may not be construed to limit a nuisance action against a sport shooting range established on or after June 1, 1997.

#### Section 5-404

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Agent of a charitable organization" means a person who:

    (i) Is or was a director, officer, or employee of a charitable organization; or

    (ii) On a volunteer basis, is or was providing services or performing duties on behalf of a charitable organization.

  (3) "Charitable organization" means an organization, institution, association, society, or corporation that is exempt from taxation under Sec. 501(c)(3) of the Internal Revenue Code.

  (4) "Farmer" means a person, including a corporation, who engages in an activity conducted solely or primarily for the production of a farm product.

  (5) "Farm product" has the meaning stated in Sec. 10-601 of the Agriculture Article.

  (6) "Glean" means:

    (i) To harvest or collect farm products from the fields of a farmer who grants access to the fields without charging a fee; and

    (ii) To distribute the farm products to needy individuals, including unemployed and low-income individuals.

(b) Except as provided in subsection (c) of this section, a farmer is not personally liable for damages in a civil action brought against the farmer for injury to a person or property by a charitable organization or an agent of a charitable organization that the farmer permitted to glean on the farmer's property.

(c) This section does not limit any liability that otherwise exists for willful or malicious failure to guard or warn against any dangerous condition, use, structure, or activity.

#### Section 5-405

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Manufacturer" means a designer, assembler, fabricator, constructor, compounder, producer, or processor of any product or its component parts.

    (ii) "Manufacturer" includes an entity not otherwise a manufacturer that imports a product or otherwise holds itself out as a manufacturer.

  (3) "Product" means any tangible article, including attachments, accessories and component parts, and accompanying labels, warnings, instructions, and packaging.

  (4) "Sealed container" means a box, container, package, wrapping, encasement, or housing of any nature that covers a product so that it would be unreasonable to expect a seller to detect or discover the existence of a dangerous or defective condition in the product. A product shall be deemed to be in a sealed container if the product, by its nature and design, is encased or sold in any other manner making it unreasonable to expect a seller to detect or discover the existence of a dangerous or defective condition.

  (5)

    (i) "Seller" means a wholesaler, distributor, retailer, or other individual or entity other than a manufacturer that is regularly engaged in the selling of a product whether the sale is for resale by the purchaser or is for use or consumption by the ultimate consumer.

    (ii) "Seller" includes a lessor or bailor regularly engaged in the business of the lease or bailment of the product.

(b) It shall be a defense to an action against a seller of a product for property damage or personal injury allegedly caused by the defective design or manufacture of a product if the seller establishes that:

  (1) The product was acquired and then sold or leased by the seller in a sealed container or in an unaltered form;

  (2) The seller had no knowledge of the defect;

  (3) The seller in the performance of the duties he performed or while the product was in his possession could not have discovered the defect while exercising reasonable care;

  (4) The seller did not manufacture, produce, design, or designate the specifications for the product which conduct was the proximate and substantial cause of the claimant's injury; and

  (5) The seller did not alter, modify, assemble, or mishandle the product while in the seller's possession in a manner which was the proximate and substantial cause of the claimant's injury.

(c) The defense provided in subsection (b) of this section is not available if:

  (1) The manufacturer is not subject to service of process under the laws of this State or the Maryland Rules;

  (2) The manufacturer has been judicially declared insolvent in that the manufacturer is unable to pay its debts as they become due in the ordinary course of business;

  (3) The court determines by clear and convincing evidence that the claimant would be unable to enforce a judgment against the product manufacturer;

  (4) The claimant is unable to identify the manufacturer;

  (5) The manufacturer is otherwise immune from suit; or

  (6) The seller made any express warranties, the breach of which were the proximate and substantial cause of the claimant's injury.

(d)

  (1) Except in an action based on an expressed indemnity agreement, if the seller shows by unrebutted facts that he has satisfied subsection (b) of this section and that subsection (c) of this section does not apply, summary judgment shall be entered in his favor as to the original or third party actions.

  (2) Notwithstanding the granting of a motion for summary judgment pursuant to paragraph (1) of this subsection, the seller will thereafter continue to be treated as though he were still a party for all purposes of discovery including the uses thereof.

  (3) On a subsequent showing of the occurrence of any condition described in subsection (c) of this section or that one or more of the conditions of subsection (b) of this section did not exist, during the pending litigation, the actions dismissed by summary judgment pursuant to paragraph (1) of this subsection shall be reinstated and are not barred by the passage of time.

#### Section 5-406

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Agent of an association or organization" means a director, officer, trustee, employee, or volunteer of an association or organization who provides services or performs duties on behalf of the association or organization.

    (ii) "Agent of an association or organization" does not include an independent contractor who provides services or performs duties on behalf of the association or organization on a contractual basis.

  (3) "Association or organization" means:

    (i) An athletic club;

    (ii) A charitable organization;

    (iii) A civic league or organization;

    (iv) A community association;

    (v) A cooperative housing corporation as that term is defined under Sec. 5-6B-01 of the Corporations and Associations Article;

    (vi) A council of unit owners of a condominium as that term is defined in Sec. 11-101 of the Real Property Article; or

    (vii) A homeowners' association.

  (4) "Athletic club" means a club organized and operated exclusively for recreational purposes that is exempt from taxation under Sec. 501(c)(7) of the Internal Revenue Code.

  (5) "Charitable organization" means an organization, institution, association, society, or corporation that is exempt from taxation under Sec. 501(c)(3) of the Internal Revenue Code.

  (6) "Civic league or organization" means an organization, operated exclusively for the promotion of social welfare, that is exempt from taxation under Sec. 501(c)(4) of the Internal Revenue Code.

  (7) "Community association" means a nonprofit association, corporation, or other organization that registers with the Secretary of State under Sec. 7-108 of the State Government Article and:

    (i)

      (1) Is composed of at least 25% of the adult residents of a local community that:

      (A) Consists of at least 40 households; and

      (B) Is defined by specific geographic boundaries in the bylaws or charter of the organization;

      (2) At least annually, requires the payment of dues;

      (3) Promotes social welfare and general civic improvement; and

      (4) In the case of a corporation, is in good standing;

    (ii)

      (1) Is composed of at least 100 adult residents, but less than 25% of the adult residents of a local community that:

      (A) Consists of at least 40 households; and

      (B) Is defined by specific geographic boundaries in the bylaws or charter of the organization;

      (2) Was organized on or before January 1, 2000, and has been in continuous operation since that date; and

      (3) Meets the requirements of item (i)2, 3, and 4 of this paragraph; or

    (iii)

      (1) Is composed of more than one of the organizations described in item (i) or item (ii) of this paragraph; and

      (2) Each of those organizations meets the requirements of item (i) or item (ii) of this paragraph.

  (8) "Compensation" does not include actual and necessary expenses that are incurred by a volunteer in connection with the services provided or duties performed by the volunteer on behalf of an association or organization, and that are reimbursed to the volunteer or otherwise paid.

  (9) "Homeowners' association" means a nonprofit association, corporation, or other organization comprised of property owners in a subdivision or group of subdivisions whose purpose is to represent the mutual interests of the property owners regarding the construction, protection, and maintenance of the commonly owned or used property and improvements.

  (10) "Suit" means any civil action, except any health care malpractice action, brought against an agent of an association or organization or against the association or organization by virtue of the agent's act or omission in providing services or performing duties on behalf of the association or organization.

  (11) "Volunteer" means an officer, director, trustee, or other person who provides services or performs duties on behalf of an association or organization without receiving compensation.

(b) Except as provided in subsection (d) of this section, an agent of an association or organization is not personally liable for damages in any suit if:

  (1) The association or organization maintains insurance covering liability incurred by the association or organization or its agents, or both, as a result of the acts or omissions of its agents in providing services or performing duties on behalf of the association or organization;

  (2) The terms of the insurance policy under which the insurance is maintained provide coverage for the act or omission which is the subject matter of the suit and no meritorious basis exists for the denial of the coverage by the insurance carrier; and

  (3) The insurance has:

    (i) A limit of coverage of not less than:

      (1) $200,000 per individual claim, and $500,000 per total claims that arise from the same occurrence; or

      (2) $750,000 per policy year, and $500,000 per total claims that arise from the same occurrence; and

    (ii)

      (1) If the insurance has a deductible, a deductible amount not greater than $10,000 per occurrence; or

      (2) If there is coinsurance, a rate of coinsurance not greater than 20 percent.

(c) In suits to which the provisions of subsection (b) of this section apply, the plaintiff may recover damages from the association or organization only to the extent of the applicable limit of insurance coverage including any amount for which the association or organization is responsible as a result of any deductible or coinsurance provisions of such insurance coverage.

(d) An agent of an association or organization shall be liable for damages in any suit in which it is found that the agent acted with malice or gross negligence, to the extent that the judgment for damages exceeds the limits on liability under subsection (c) of this section.

(e) The provisions of this section do not apply to suits brought by the Attorney General upon referral by the Secretary of State in which willful violations of Title 6 of the Business Regulation Article are alleged and proven.

(f)

  (1) This section does not create, and may not be construed as creating, a new cause of action or substantive legal right against an association or organization or an agent of an association or organization.

  (2) This section does not affect, and may not be construed as affecting, any immunities from civil liability or defenses established by any other provision of the Code or available at common law, to which an association or organization or an agent of an association or organization may be entitled.

(g) This section may be cited as the Maryland Associations, Organizations, and Agents Act.

#### Section 5-407

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Association or organization" means:

    (i) A business league;

    (ii) A charitable organization;

    (iii) A civic league;

    (iv) A club;

    (v) A labor, agricultural, or horticultural organization; or

    (vi) A local association of employees.

  (3) "Business league" means a league, chamber of commerce, real estate board, or board of trade that is exempt from taxation under Sec. 501(c)(6) of the Internal Revenue Code.

  (4) "Charitable organization" means an organization, institution, association, society, or corporation that is exempt from taxation under Sec. 501(c)(3) of the Internal Revenue Code.

  (5) "Civic league" means an organization, institution, association, society, or corporation that is exempt from taxation under Sec. 501(c)(4) of the Internal Revenue Code.

  (6) "Club" means an organization, institution, association, society, or corporation that is exempt from taxation under Sec. 501(c)(7) of the Internal Revenue Code.

  (7) "Compensation" does not include actual and necessary expenses that are incurred by a volunteer in connection with the services provided or duties performed by the volunteer on behalf of an association or organization, and that are reimbursed to the volunteer or otherwise paid.

  (8) "Labor, agricultural, or horticultural organization" means an organization, institution, association, society, or corporation that is exempt from taxation under Sec. 501(c)(5) of the Internal Revenue Code.

  (9) "Local association of employees" means an association of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, that is exempt from taxation under Sec. 501(c)(4) of the Internal Revenue Code.

  (10) "Suit" means a civil action, including a health care malpractice action filed with the Health Care Alternative Dispute Resolution Office, brought against a volunteer of an association or organization or against the association or organization by virtue of the volunteer's act or omission in providing services or performing duties on behalf of the association or organization.

  (11)

    (i) "Volunteer" means an officer, director, trustee, or other person who provides services or performs duties for an association or organization without receiving compensation.

    (ii) In a health care malpractice action, "volunteer" does not include a provider of health care services or an employee who performs duties on behalf of a charitable organization.

(b) A volunteer is not liable in damages beyond the limits of any personal insurance the volunteer may have in any suit that arises from an act or omission of an officer, director, employee, trustee, or another volunteer of the association or organization for which the volunteer performs services, unless:

  (1) The volunteer knew or should have known of an act or omission of a particular officer, director, employee, trustee, or another volunteer, and the volunteer authorizes, approves, or otherwise actively participates in that act or omission; or

  (2) After an act or omission of a particular officer, director, employee, trustee, or another volunteer, the volunteer, with full knowledge of that act or omission, ratifies it.

(c) A volunteer is not liable in damages beyond the limits of any personal insurance the volunteer may have in any suit that arises from the volunteer's act or omission in connection with any services provided or duties performed by the volunteer on behalf of the association or organization, unless an act or omission of the volunteer constitutes gross negligence, reckless, willful, or wanton misconduct, or intentionally tortious conduct.

(d)

  (1) This section does not create, and may not be construed as creating, a new cause of action or substantive legal right against a volunteer.

  (2) This section does not affect, and may not be construed as affecting, any immunities from civil liability or defenses established by any other provision of the Code or available at common law, to which a volunteer may be entitled.

(e) The provisions of this section do not apply to suits brought by the Attorney General upon referral by the Secretary of State in which willful violations of Title 6, Subtitles 3, 4, 5, and 6 of the Business Regulation Article are alleged and proven.

(f) This section may be cited as the Maryland Volunteer Service Act.

#### Section 5-408

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Credit agreement" means a covenant, promise, undertaking, commitment, or other agreement by a financial institution to:

      (1) Lend money;

      (2) Forbear from repayment of money, goods, or things in action;

      (3) Forbear from collecting or exercising any right to collect a debt; or

      (4) Otherwise extend credit.

    (ii) "Credit agreement" includes agreeing to take or to not take certain actions by a financial institution in connection with an existing or prospective credit agreement.

  (3) "Financial institution" means:

    (i) A bank;

    (ii) A trust company;

    (iii) A savings bank;

    (iv) A savings and loan association; or

    (v) An affiliate or subsidiary of a bank, trust company, savings bank, or savings and loan association.

(b) A credit agreement is not enforceable by way of action or defense unless it:

  (1) Is in writing;

  (2) Expresses consideration;

  (3) Sets forth the relevant terms and conditions of the agreement; and

  (4) Is signed by the person against whom its enforcement is sought.

(c)

  (1) This section applies only to commercial transactions.

  (2) This section does not apply to:

    (i) Credit agreements made primarily for personal, family, or household purposes; or

    (ii) Credit extended by means of, or in connection with, a credit or charge card.

#### Section 5-409

In the absence of fraud no insurance company or person who furnishes information on its behalf is liable for damages in a civil action for any oral or written statement made or any other action taken that is necessary to supply information required under Sec. 9-605 of the Public Safety Article.

#### Section 5-410

(a) Except as provided in subsection (b) of this section, no claim of any nature whatsoever that is directly related to the receivership of an insurer shall arise against, and no liability shall be imposed upon, the Insurance Commissioner, deputy commissioner, special deputy commissioner, or any person or entity acting as a receiver of an insurer, including surety, in rehabilitation, liquidation, or conservation as a result of a court order issued on or after January 1, 1985 for any statement made or actions taken or not taken in the good faith exercise of their powers under law.

(b) The immunity described under subsection (a) of this section may not extend to acts or omissions that are malicious or grossly negligent.

(c) The immunity described under subsection (a) of this section extends to agents and employees of the receiver.

#### Section 5-411

(a) There may not be any liability on the part of or cause of action of any nature against an Association member, the Joint Insurance Association or its agents or employees, the Board of Directors, or the Insurance Commissioner or the Commissioner's representatives for any action taken by them in the performance of their powers and duties under Title 25, Subtitle 4 of the Insurance Article, except:

  (1) To the extent that it is proven that any of the entities or individuals specified in this subsection actually received an improper benefit or profit in money, property, or services, for the amount of the benefit or profit in money, property, or services actually received;

  (2) To the extent that a judgment or other final adjudication adverse to any of the entities or individuals specified in this section is entered in a proceeding based on a finding in the proceeding that the entity's or individual's action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or

  (3) To the extent that any act of an entity or individual specified in this section was committed in bad faith.

(b) There may not be any liability on the part of or cause of action of any nature against an Association member, the Joint Insurance Association, the governing committee of the Joint Insurance Association, their agents or employees, or the Insurance Commissioner or the Commissioner's authorized representatives for any failure to discover defects in the property inspected or for any statements made in any reports and communications concerning the insurability of the property, or in the findings required by the provisions of Title 25, Subtitle 4 of the Insurance Article or the hearings conducted in connection therewith.

#### Section 5-412

There shall be no liability on the part of and no cause of action of any nature shall arise against a member insurer, the Property and Casualty Insurance Guaranty Corporation or its agents or employees, the Board of Directors, or the Insurance Commissioner or the Commissioner's representatives for any action taken by them in the performance of their powers and duties under Title 9, Subtitle 3 of the Insurance Article.

#### Section 5-413

(a) Except for the payment of assessments as provided under Title 9, Subtitle 4 of the Insurance Article, there shall be no liability on the part of and no cause of action of any nature shall arise against a member insurer or its agents or employees, the Life and Health Insurance Guaranty Corporation or its agents or employees, members of the Board of Directors, or the Insurance Commissioner or representatives of the Commissioner for any action or omission taken by them in the performance of their powers and duties under Title 9, Subtitle 4 of the Insurance Article.

(b) The immunity provided under this section shall apply to the participation in any organization that consists of one or more other State associations or corporations that have purposes similar to the Life and Health Insurance Guaranty Corporation, and to any such organization and its agents or employees.

#### Section 5-414

An association or organization participating or interested in a labor dispute, as those terms are defined under the Labor and Employment Article, or an officer or member of the association or organization, may not be held responsible or liable in a civil action at law or suit in equity, or in any criminal prosecution, for the unlawful acts of individual officers, members, or agents, except on proof by the weight of evidence and without the aid of any presumptions of law or fact, both of:

(1) The doing of the unlawful acts by persons who are officers, members, or agents of the association or organization; and

(2) Actual participation in, actual authorization of, or ratification of, the unlawful acts after actual knowledge of the unlawful acts by the association or organization.

#### Section 5-415

A transportation company or common carrier is not liable for damages for refusing to deliver a colony, as defined under Sec. 5-501 of the Agriculture Article, not accompanied by the documents required under Title 5, Subtitle 5 of the Agriculture Article.

#### Section 5-416

A member of a lawyer counseling committee, defined under Sec. 10-502 of the Business Occupations and Professions Article, who acts in good faith and within the scope of the jurisdiction of the committee is not civilly liable or subject to a disciplinary proceeding for:

(1) An action as a member of the committee; or

(2) Giving information to, participating in, or contributing to the functioning of the committee.

#### Section 5-417

(a) In this section, "act" has the meaning stated in Sec. 2-405.1 of the Corporations and Associations Article.

(b) A present or former director of a corporation who while a director acts or acted in accordance with the standard of conduct provided in Sec. 2-405.1 of the Corporations and Associations Article has no liability in any action based on an act of the director.

#### Section 5-418

(a) The charter, as defined under Sec. 1-101 of the Corporations and Associations Article, of a Maryland corporation may include any provision expanding or limiting the liability of its directors and officers to the corporation or its stockholders for money damages, but may not include any provision that restricts or limits the liability of its directors or officers to the corporation or its stockholders:

  (1) To the extent that it is proved that the person actually received an improper benefit or profit in money, property, or services for the amount of the benefit or profit in money, property, or services actually received;

  (2) To the extent that a judgment or other final adjudication adverse to the person is entered in a proceeding based on a finding in the proceeding that the person's action, or failure to act, was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding; or

  (3) With respect to any action described in subsection (b) of this section.

(b) This section does not apply to an action brought by or on behalf of a State governmental entity, receiver, conservator, or depositor against a director or officer of:

  (1) A banking institution as defined in Sec. 1-101 of the Financial Institutions Article;

  (2) A credit union as described in Sec. 6-301 of the Financial Institutions Article;

  (3) A savings and loan association as defined in Sec. 8-101 of the Financial Institutions Article; or

  (4) A subsidiary of a banking institution, credit union, or savings and loan association described in this subsection.

(c) This section may not be construed to affect the liability of a person in any capacity other than the person's capacity as a director or officer.

#### Section 5-419

(a) Subject to the provisions of subsection (b) of this section, a shareholder or trustee of a real estate investment, defined under Title 8, Subtitle 1 of the Corporations and Associations Article, is not personally liable for the obligations of the real estate investment trust.

(b) If a trustee otherwise would be liable, the provisions of subsection (a) of this section do not relieve the trustee from any liability to the trust or its security holders for any act that constitutes:

  (1) Bad faith;

  (2) Willful misfeasance;

  (3) Gross negligence; or

  (4) Reckless disregard of the trustee's duties.

(c)

  (1) Except as provided in paragraph (2) of this subsection, the declaration of trust of a real estate investment trust may include any provision expanding or limiting the liability of its trustees and officers to the trust or its shareholders for money damages.

  (2) The declaration of trust of a real estate investment trust may not include any provision that restricts or limits the liability of its trustees or officers to the trust or its shareholders:

    (i) To the extent that it is proved that the person actually received an improper benefit or profit in money, property, or services, for the amount of the benefit or profit in money, property, or services actually received; or

    (ii) To the extent that a judgment or other final adjudication adverse to the person is entered in a proceeding based on a finding in the proceeding that the person's action or failure to act was the result of active and deliberate dishonesty and was material to the cause of action adjudicated in the proceeding.

  (3) This subsection may not be construed to affect the liability of a person in any capacity other than the person's capacity as a trustee or officer of a real estate investment trust.

#### Section 5-420

(a) In this section, "partnership" has the meaning stated in Sec. 9A-101 of the Corporations and Associations Article.

(b) A person who is admitted as a partner into an existing partnership is liable for all the obligations of the partnership arising before the person's admission as though the person had been a partner when the obligations were incurred, except that this liability shall be satisfied only out of the property of the partnership.

#### Section 5-421

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Assignment" has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.

  (3) "Corporation" has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.

  (4) "Fiduciary" has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.

  (5) "Person" has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.

  (6) "Transfer" has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.

  (7) "Transfer agent" has the meaning stated in Title 15, Subtitle 3 of the Estates and Trusts Article.

(b) A person who participates in the acquisition, disposition, assignment, or transfer of a security by or to a fiduciary, including a person who guarantees the signature of the fiduciary, is not liable for participation in any breach of fiduciary duty by reason of failure to inquire whether the transaction involves a breach unless it is shown that the person acted with actual knowledge that the proceeds of the transaction were being or were to be used wrongfully for the individual benefit of the fiduciary or that the transaction was otherwise in breach of duty.

(c) If a corporation or transfer agent makes a transfer under an assignment by a fiduciary, a person who guaranteed the signature of the fiduciary is not liable on the guarantee to any person to whom the corporation or transfer agent, by reason of this section or Title 15, Subtitle 3 of the Estates and Trusts Article, incurs no liability.

#### Section 5-422

(a) In this section, "governing body" has the meaning stated in Sec. 14-118 of the Real Property Article.

(b) Subject to the provisions of subsection (c) of this section, a person sustaining an injury as a result of the tortious act of an officer or director of a governing body while the officer or director is acting within the scope of the officer's or director's duties may recover only in an action brought against the governing body for the actual damages sustained.

(c) In a proceeding against a governing body, a director or officer of a governing body may not be held personally liable for injuries sustained by a party if the director or officer:

  (1) Acted within the scope of the director's or officer's duties;

  (2) Acted in good faith; and

  (3) Did not act in a reckless, wanton, or grossly negligent manner.

(d)

  (1) Except as provided in paragraph (2) of this subsection, a claimant shall name only the governing body as a party defendant.

  (2) An officer or director of a governing body may be named individually only when the governing body for which the officer or director was acting cannot be determined at the time an action is instituted under this section.

  (3) If an officer or director is named as an individual defendant under this section, the governing body for which the officer or director was acting shall be substituted as the party defendant when its identity reasonably can be determined.

#### Section 5-423

(a) An employer acting in good faith may not be held liable for disclosing any information about the job performance or the reason for termination of employment of an employee or former employee of the employer:

  (1) To a prospective employer of the employee or former employee at the request of the prospective employer, the employee, or former employee; or

  (2) If requested or required by a federal, State, or industry regulatory authority or if the information is disclosed in a report, filing, or other document required by law, rule, order, or regulation of the regulatory authority.

(b) An employer who discloses information under subsection (a) of this section shall be presumed to be acting in good faith unless it is shown by clear and convincing evidence that the employer:

  (1) Acted with actual malice toward the employee or former employee; or

  (2) Intentionally or recklessly disclosed false information about the employee or former employee.

#### Section 5-424

A licensed veterinary practitioner is immune from any civil liability that results from:

(1) The actions of a licensed acupuncturist that practices in accordance with Sec. 2-301(g)(11) of the Agriculture Article;

(2) The actions of a person that:

  (i) Is licensed, certified, or otherwise authorized to practice a health occupation under the Health Occupations Article; and

  (ii) Is authorized to practice the health occupation on an animal in accordance with Sec. 2-304 of the Agriculture Article;

(3) A report in good faith of suspected animal cruelty or animal fighting to a local law enforcement or county animal control agency under Sec. 2-313.1 of the Agriculture Article; or

(4) The licensed veterinary practitioner's participation in an investigation of suspected animal cruelty or animal fighting as provided in Sec. 2-313.1(c) of the Agriculture Article.

#### Section 5-425

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Building inspection official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate building inspection in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

  (3) "Fire official" means any appointed or elected local official with overall executive responsibility to coordinate fire, rescue, or emergency medical services in the jurisdiction in which a fire, emergency, disaster, or catastrophic event has occurred.

  (4) "Law enforcement official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate law enforcement in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

  (5) "Public official" means any federal, State, or locally elected official with overall executive responsibility in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

  (6) "Public safety official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate public safety in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

(b) A professional engineer is not personally liable in damages beyond the limits of any applicable insurance or self-insurance for any personal injury, wrongful death, property damage, or other loss caused by an act, error, or omission of the professional engineer while practicing engineering with regard to any structure, building, piping, or other engineered system, either publicly or privately owned, if:

  (1) The act, error, or omission was not wanton, willful, intentionally tortious, or grossly negligent; and

  (2) The practice of engineering was performed:

    (i) Voluntarily and without compensation;

    (ii) At the scene of a declared national, State, or local emergency caused by a major earthquake, hurricane, tornado, fire, explosion, collapse, or similar disaster or catastrophic event; and

    (iii) At the request of a public official, law enforcement official, public safety official, fire official, or building inspection official, acting in an official capacity.

(c) The immunity provided by this section applies only to the voluntary practice of engineering performed while a declared state of emergency is in effect.

(d)

  (1) This section does not create, and may not be construed as creating, a new cause of action or substantive legal right against a professional engineer.

  (2) This section does not affect, and may not be construed as affecting, any immunities from civil liability or defenses established by any other provisions of the Code or available at common law, to which a professional engineer may be entitled.

#### Section 5-426

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Building inspection official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate building inspection in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

  (3) "Fire official" means any appointed or elected local official with overall executive responsibility to coordinate fire, rescue, or emergency medical services in the jurisdiction in which a fire, emergency, disaster, or catastrophic event has occurred.

  (4) "Law enforcement official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate law enforcement in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

  (5) "Public official" means any federal, State, or locally elected official with overall executive responsibility in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

  (6) "Public safety official" means any appointed or elected federal, State, or local official with overall executive responsibility to coordinate public safety in the jurisdiction in which an emergency, disaster, or catastrophic event has occurred.

(b) A licensed architect is not personally liable in damages beyond the limits of any applicable insurance or self-insurance for any personal injury, wrongful death, property damage, or other loss caused by an act, error, or omission of the licensed architect while practicing architecture with regard to any structure or other architectural design, either publicly or privately owned, if:

  (1) The act, error, or omission was not wanton, willful, intentionally tortious, or grossly negligent; and

  (2) The practice of architecture was performed:

    (i) Voluntarily and without compensation;

    (ii) At the scene of a declared national, State, or local emergency caused by a major earthquake, hurricane, tornado, fire, explosion, collapse, or similar disaster or catastrophic event; and

    (iii) At the request of a public official, law enforcement official, public safety official, fire official, or building inspection official, acting in an official capacity.

(c) The immunity provided by this section applies only to the voluntary practice of architecture performed while a declared state of emergency is in effect.

(d)

  (1) This section does not create, and may not be construed as creating, a new cause of action or substantive legal right against a licensed architect.

  (2) This section does not affect, and may not be construed as affecting, any immunities from civil liability or defenses established by any other provisions of the Code or available at common law, to which a licensed architect may be entitled.

#### Section 5-427

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Practice land surveying" has the same meaning as provided in Sec. 15-101 of the Business Occupations and Professions Article.

  (3) "Professional land surveyor" means a land surveyor who is licensed by the State Board for Professional Land Surveyors to practice land surveying.

(b) A professional land surveyor, or an agent or employee of a professional land surveyor, who enters a property to practice land surveying may not be held liable under the common law tort of trespass.

(c) This section does not:

  (1) Affect, and may not be construed as affecting, any immunities from civil liability or defenses established by any other provision of the Code or available at common law or equity to which a professional land surveyor, or an agent or employee of a professional land surveyor, may be entitled; or

  (2) Impair the right of a person to seek redress under any other provision of the Code or at common law or equity for conduct by a professional land surveyor, or an agent or employee of a professional land surveyor, that is otherwise actionable.

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Md. Code Ann., Cts. & Jud. Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)