Title 8. Landlord and Tenant — Subtitle 3. Distress for Rent

In this subtitle the following words have the meanings indicated unless otherwise apparent from context.

“Court” means the District Court.

“Defendant” means a tenant.

“Distress” means an action of distress filed pursuant to the provisions of this subtitle.

“Goods” means goods, chattels, grain, growing crops, produce, unborn young of animals, inventory, and equipment regardless of where found or located, and includes cash money found on the leased premises. “Goods” does not include choses in action, other forms of intangible property, written contracts, securities, bonds, notes, or other instruments for the payment of money.

Distress for rent is an action at law and shall be brought as provided in this section.

Original jurisdiction in a case of distress for rent is vested exclusively in the District Court regardless of the amount of rent for which distress is brought, notwithstanding any limitation imposed by law on the civil monetary jurisdiction of such court.

An action of distress may be brought only for unpaid rent under a written lease for a term of more than three months, or under a tenancy at will or a periodic tenancy that has continued more than three months.

An action of distress shall be brought in the county where the leased premises lie.

A party to an action of distress brought in the District Court under this section may demand a trial by jury in accordance with Subtitle 6 of this article.

An action of distress shall be brought by the landlord as plaintiff, the landlord’s petition shall name the tenant as defendant and contain the following information:

The petition shall be under oath or affirmation of the plaintiff, or the plaintiff’s agent, that the facts recited are true and correct.

If a defendant is not a resident of, or amenable to service in a county where the leased premises are located, service may be made by certified mail, return receipt requested, bearing a postmark from the United States Postal Service. If this service is returned by the Post Office Department or refused by the addressee or the addressee’s agent, then process shall be sent by first-class mail and the defendant returned as summoned.

When an action of distress is filed, the clerk shall issue an order directing the defendant to appear and show cause at a stated time why levy under an action of distress should not be made. The hearing may be not earlier than seven days from date of service on the defendant.

In addition, the order shall:

On a determination of reasonable probability, the court promptly shall issue an order directing that all goods on the leased premises not exempted by law shall be levied on. A copy of the order of levy shall be served on each tenant on the leased premises. If no tenant is found on the premises, a copy of the order shall be affixed in a prominent place on the interior of the leased premises.

The officer making the levy then shall proceed to make an inventory of each article of goods distrained on and deliver a copy to each tenant found on the leased premises. If no tenant is found, the officer shall affix a copy to the premises as provided above in the case of the order.

The officer serving the order shall make a return of the officer’s action to the court including the date and time of return.

If the plaintiff by verified petition requests the court to include in the levy goods subject to distress and claimed to be on the leased premises but not included in the levy and inventory, the court, after service of a copy of the petition on the defendant and any person claiming an interest in the goods, shall conduct a hearing on the petition. The court may amend the levy and inventory to include those goods the court finds should be included.

The levy under an action of distress shall be made solely on goods on the leased premises, regardless of whether the goods are the property of the tenant or of some other person, except as provided in this subtitle.

When the term of a lease is for more than 15 years, levy shall be made solely on the goods of the tenant or owner of the leasehold interest found on the leased premises. However, the goods of any subtenant or of any third party on the leased premises are not subject to levy under distress.

The following are exempt from distress:

The landlord in the landlord’s petition shall certify as to the existence of a perfected security interest in any goods of the tenant. If the security interest was perfected prior to the levy under the distraint, the landlord either shall release the property from the distraint proceedings or pay to the holder of the security interest the balance due under the security interest. If the landlord pays the balance, it becomes a part of the costs in the distraint proceedings. However, the holder of the security interest, on demand by the landlord, shall give a true written statement of the balance due under the security interest, and, if the landlord pays the balance, the holder shall assign or release the security interest to the landlord.

In making levy under an action of distress, no forcible entry may be made into leased premises occupied and used as a dwelling without a court order. If the levying officer cannot gain entry, the plaintiff may file a verified petition with the court for an order directing forcible entry into the leased premises.

Forcible entry may be made for the purpose of levy into any property or building other than those specified in subsection (a) of this section.

Levy under an action of distress may be made at any hour of the day or night.

Within seven days after the levy, any person who is not a tenant and whose goods are levied on under distress may file a petition with the court where the action of distress is pending for an order to exclude from levy the goods of the person not a tenant. The petition shall set forth the facts as to the ownership of the goods and shall be verified by the petitioner.

A copy of the petition shall be served on the plaintiff and defendant. If service cannot be made on either, the petitioner shall certify this fact to the court in writing, stating the reason for it.

After a hearing held on not more than ten days’ notice, and on submission of proof satisfactory to the court that the goods are not the property of the tenant, the court shall issue an order excluding the goods from levy. This order authorizes the owner to remove the owner’s goods from the leased premises at the owner’s expense free of any claim of the landlord.

The order shall provide that the claimant shall remove the claimant’s goods at the claimant’s expense from the leased premises within a time to be fixed by the court. If the claimant fails to remove the claimant’s goods within the fixed time, then the goods claimed by the claimant no longer shall be excluded from distress and shall be subject to the landlord’s claim for distress as though no petition for exclusion had been filed.

If no petition to determine ownership of goods is filed by any third person within seven days after the date of a levy under distress, all goods on the leased premises and included in the inventory conclusively are presumed to be the goods of the tenant and may be disposed of according to the applicable provisions of this subtitle without any liability to the owner for the disposal.

Levy on goods under distress does not affect or disturb the title to the goods. The claim or lien of the landlord under this subtitle on the goods continues until the goods are sold as provided in this subtitle.

All risk of loss or destruction of goods of any nature is on the owner or the tenant of the leased premises, regardless of whether the goods were removed from the leased premises by the officer. However, the officer is responsible to the owner for willful damage to the goods.

The expense of removal of any goods from the leased premises to any other place for storage pending sale, including the expense of removal of goods which are affixed to the property, shall be included as a part of the costs of distress.

An officer does not incur liability for removal of goods which are affixed to the property. The officer may require the plaintiff to mail or deliver an indemnity bond to the officer to protect the officer from any claim for damage or injury to any person or property caused by the officer’s removal for sale of goods affixed to the property.

The defendant in an action of distress may file an answer, setting forth any defense the defendant may have to the action, including excessive rent distrained for or the rent sued is not distrainable.

Hearing on the defendant’s answer shall be held on not more than ten days’ notice sent by regular mail to all parties and claimants. However, the court may postpone the hearing on due notice to all parties. At the hearing the court may determine and decide all issues raised, and issue an order of sale of the goods and may make any order in connection with them as required.

In any final order for the sale of goods distrained, the court may increase the amount of the rent claim to an amount equal to the sum of the plaintiff’s original claim plus rent accruing after the filing of the petition for distress up to the day prior to the date of sale on which rent may fall due.

If the tenant named as defendant in an action for distress fails to file an answer within seven days after a levy has been made, the court, on motion of the plaintiff or on its motion, may issue an order for sale of the goods distrained.

The date of sale is in the discretion of the court but shall be held as soon as feasible.

If a tenant removes the tenant’s goods from the leased premises, and the officer can find no goods of the tenant on the premises, the officer shall report that fact to the court. If the court is satisfied the goods of the tenant have been removed, it may issue an order to follow goods under distress within six months after filing of an action of distress. The order shall authorize levy on the removed goods at any place the goods can be found within the jurisdiction of the court.

If the goods are removed outside the court’s jurisdiction, the plaintiff may file with the court in the jurisdiction where the goods are located, a certified copy of the original action of distress, together with a verified petition setting forth (i) the fact of the original petition for distress, (ii) the premises to which the tenant has removed the goods, and (iii) the name and address of the occupant of the premises. If the occupant of the premises to which the goods are removed is a person other than the tenant, an order shall be served by first-class mail or by an officer on the other person giving the occupant seven days from the date of service of the order to protest seizure of the goods. If not protested, the order becomes final and authorizes any officer to seize and remove the goods.

Entry to premises under an order to follow goods under distress may be forcible.

Any person whose goods are levied on or seized under distress may petition the court for the return of the goods, free of any claim for distress. However, the court may require the filing of a bond with the court in a form and in an amount the court determines. The bond shall run to the State and indemnify injured persons against all claims for damage or injury resulting from the release of the goods.

The court may order a complete or partial release from any claim for distress of any goods when requested in writing by all parties to the action of distress. No bond is required for release of any goods in this case.

Notice of sale of goods under an action of distress shall be given in a newspaper published at least once weekly and having general circulation within the jurisdiction of the court. The notice shall be published at least one time and an additional number of times as the court designates.

If no newspaper meets the requirements of this section, notice may be made by posting it on the door of the courthouse. The notice of sale shall be published or posted at least seven days in advance of the date of the sale and the sale shall be held not more than 28 days after notice of sale.

The notice shall contain the time and location of the sale.

Only those goods necessary to satisfy the claim for rent due and to pay all costs may be sold in a sale under distress. Any unsold goods shall be returned to the tenant if they have been removed or they shall be left on the premises. If a surplus of money remains after the sale and payment of the rent claim and all costs, it shall be returned to the tenant or paid as provided by order of the court. The cost of returning unsold goods to the premises, if removed, shall be included as costs of the sale.

Before any distrainable goods of others are sold at a sale, the goods of the tenant shall be sold first and in their entirety, if necessary, to satisfy the claim for rent and costs. The sale of goods of others shall be made only to the extent necessary to satisfy the rent claim and all costs.

If any surplus money or unsold goods remain in the possession of an officer on completion of proceedings in an action of distress and after payment of all claims and costs incurred, a judgment creditor or other person claiming a right to the money or goods may petition the court in which the action was brought for payment of the creditor’s or claimant’s judgment or claim out of the excess of money or goods, plus court costs expended by the creditor or claimant. After a hearing on the petition, the court may direct payment of the money or goods or order the sale of goods in the same manner and after proceedings similar to those in attachment or execution. Any exemption allowed by law is permitted in these proceedings if claimed.

Filing costs shall be paid at the time of filing the action, and other costs at the time of filing subsequent petitions. The award and distribution of costs are in the discretion of the court.

If the plaintiff in an action of distress makes an election in writing, the court may declare the lease terminated and of no further force and effect. This election may be made only if all tenants have been served with a copy of the action of distress and after sale of all goods levied on. The court may not terminate any residential lease which runs for more than 15 years.

If any tenant was not served with a copy of the action of distress, the court may declare the lease terminated if a copy of the nisi order of termination is twice returned non est as to the nonsummoned defendant.

If the court declares a lease terminated under subsection (a) of this section, the court on application of the plaintiff, may issue its order or judgment of restitution of the premises. The court shall issue its warrant to the officer commanding the officer to deliver immediately to the plaintiff, possession in full and ample manner as set forth in § 8-402(b) of this title. The costs of this action are the same as in the case of a tenant holding over.

If the amount received from a sale of goods under distress, after payment of all costs and expenses, is not sufficient to pay the plaintiff’s claim, the plaintiff may file a verified petition with the court for a deficiency money judgment. Notice of the petition shall be served on the tenant, giving at least 14 days’ notice of hearing on the petition. After the hearing, the court may order a money judgment entered for the deficiency against the defendant regardless of whether the amount exceeds the monetary limit of the civil jurisdiction of the court.

A deficiency money judgment under a lease may be entered only against the person named in the lease as tenant, and who signed the lease as such, or against an assignee who has assumed a covenant in writing to pay rent.

The general exemption laws of the State are applicable to the enforcement of any deficiency money judgment given in an action of distress.

If a tenant under a lease dies, or, if the tenant is a corporation and ceases to exist, distress may be brought against the tenant named in the lease regardless of death or nonexistence. The plaintiff shall give notice of an action of distress to the personal representative of a deceased defendant or to any person who was an officer at the time the corporation ceased to exist and the plaintiff shall certify to the court that the plaintiff has given notice. Then the plaintiff may proceed with levy and sale as provided in this subtitle.

If a tenant dies and no personal representative is appointed by a court having jurisdiction, or if an officer of the nonexistent corporation cannot be found and, therefore, service of process is returned non est, then, on application of the plaintiff, an order may be passed requiring a copy of the petition for distress to be posted at the courthouse door at least one week before the date of sale. Failure of the plaintiff to apply for the order subjects the plaintiff to suit by the personal representative of the deceased tenant, or by the officer or surviving directors of the nonexistent corporation for any loss or damage sustained. If the plaintiff makes application for the order, the plaintiff is under no liability either to the estate of the deceased tenant, or to the surviving trustees or officers of the nonexistent corporation.

If a lease for more than three months is assigned, the assignee is liable to distress for any goods on the leased premises as though originally named in the lease as tenant.

Any goods of the assignee on the leased premises shall be subject to the landlord’s distress claim to the same extent as though the assignee was originally a tenant. This liability of goods exists regardless of whether the assignment was oral or written and regardless of the terms set out in the assignment. The obligation of the assignee of the lease for personal liability shall be restricted to the terms and agreements contained in the assignment of lease. The exercise of any right of the landlord against the assignee provided in this section does not bar any rights the landlord may have against the assignor.

Any aggrieved party may appeal from any final order or judgment in an action of distress to the circuit court of the county. The appeal shall be taken within 14 days from the date of the order or judgment.

On appeal the case shall be tried de novo. On the application of any party to the action for a prompt hearing of the appeal, it shall be set for trial as soon as possible. Any party has the right to a jury trial on application in accordance with the rules adopted by the appellate court.

An appeal does not stay or prevent a subsequent distress for rent falling due after the original petition for distress. However, the court may order a stay of all further proceedings, including those for subsequent rent, if the tenant files an appeal bond approved by the court.

An appeal does not stay execution of a judgment or order unless an approved appeal bond is filed.