Claims against Fund

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    (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 $20,000 to one claimant for acts or omissions of one contractor;

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

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

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

        (5)    an amount in excess of the amount paid by or on behalf of the claimant to the contractor against whom the claim is filed.

    (f)    (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 three residences or 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.


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