Golf course construction and the law: my first venture into Maryland’s legal system

When I walked into the Dorchester County courthouse on April 28, 2003, it was my first venture into the Maryland legal system.  My appearance was in the context of a golf course construction dispute.  At that time, I had been practicing law in in West Chester, PA for more than 25 years. My client was the Wadsworth Golf Course Construction Company of the Midwest.

Wadsworth had finished construction of the River Marsh golf course at the Hyatt Regency resort in Cambridge and was owed more than $721,000 ($1.3 million in today’s dollars).  When the general contractor did not pay, we had filed a claim against its payment bond.  The surety denied the claim but, in doing so, failed to comply with the terms of the payment bond requiring it to provide Wadsworth with a specific and timely explanation of the reasons for its denial.  The facts were not in dispute.  We filed a motion for summary judgement in response to which the surety moved for a stay.

This was clearly an “away game” for my client and me.  We anticipated the worst.  I had tried to engage Dorchester County counsel to assist us but, because there were many subcontractors in the same boat as Wadsworth, the entire bar was conflicted out.  That turned out to be a blessing because it caused me to look to Wicomico County where I engaged a very talented attorney, Russell Dashiell of Salisbury, as local counsel. Russell argued our motion before retired Court of Appeals Judge Marvin Smith who, I learned later, was an esteemed Maryland jurist.  At the conclusion of the argument, the judge astounded everyone by immediately ruling, from the bench, in our favor!  The ruling was reduced to writing shortly thereafter.  The surety appealed the ruling to the Court of Special Appeals and the Court of Appeals (now the Maryland Supreme Court), both of which upheld Judge Smith.

In its opinion in National Union Fire Insurance Company of Pittsburgh v. Wadsworth Golf Construction Company of the Midwest (2005), the Maryland Supreme Court ruled that sureties forfeit their right to dispute a bond claim if they fail to provide a detailed, specific response within the contractually required 45-day window. The decision established a firm precedent that strict adherence to payment bond timelines is necessary, preventing sureties from using generic letters to delay payments to subcontractors.

The 18th fairway at River Marsh Golf Course, Cambridge, MD

So, my first venture into Maryland’s legal system was a memorable one.  I take pride in having helped to establish this legal precedent.  Since appearing before Judge Smith in 2003, I’ve been admitted law to practice in Maryland (2015) and also hold a Maryland real estate broker’s license (2020).

Steve Lagoy, Associate Broker

Coldwell Banker Chesapeake

114 S Cross St Ste B, Chestertown. MD 21620

steve@cbchesapeake.com

www.isellmdes

MD 5014893

(410) 778-0330 (office); (610) 888-2660 (mobile)