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Area Dev. Corp. v. Free State Plaza

Citations: 254 A.2d 355; 254 Md. 269; 1969 Md. LEXIS 869Docket: [No. 315, September Term, 1968.]

Court: Court of Appeals of Maryland; June 25, 1969; Maryland; State Supreme Court

Narrative Opinion Summary

This case involves a legal dispute between Area Development Corporation (ADC) and Free State Plaza, Inc. concerning a lease agreement with the City of Bowie over a water supply and sewage system. ADC had an exclusive agreement with the city preventing extension of the system without its consent. Free State Plaza, having acquired a subleasehold, sought connection to the system but was refused by ADC unless it covered all costs. Free State sued for a summary judgment to void a lease provision (Article 9C) as against public policy, which the trial court upheld, declaring it unenforceable against Bowie. ADC appealed; however, before the appeal was heard, Free State and ADC settled, and Free State chose not to pursue the appeal further. Bowie later supported the trial court's decision. The Maryland Court of Appeals dismissed the appeal as moot, as the original controversy was resolved through settlement, and no compelling public interest warranted adjudication of the moot issue. The court vacated the lower court's judgment and remanded the case for dismissal, assigning costs to the City of Bowie.

Legal Issues Addressed

Exceptions to the Mootness Doctrine

Application: In determining whether to adjudicate a moot issue, the court considered whether circumstances were present that warranted establishing a rule of future conduct.

Reasoning: In Lloyd v. Board of Supervisors of Election of Baltimore County, 206 Md. 36, 43, the court emphasized that deviation from the general practice of not adjudicating moot cases is only warranted when there is a compelling need to establish a rule of future conduct on matters of significant public concern.

Mootness Doctrine in Appellate Proceedings

Application: The court applied the mootness doctrine, dismissing the appeal due to a settlement between the parties, rendering the controversy non-justiciable.

Reasoning: Ultimately, the Court found the controversy moot due to the settlement and dismissed ADC's appeal.

Public Policy and Contractual Provisions

Application: The trial court ruled that a lease provision restricting the city's ability to extend a water and sewage system was void against public policy.

Reasoning: The trial court agreed, ruling that Article 9C was illegal and not binding on Bowie.