In the case, Anderson, et al. v Council of Unit Owners of the Gables on Tuckerman Condominium, et al.- Case No. 99, Sept. Term 2007 – (Gables Case) the Court held that the Maryland Condominium Act (“the Act”) does not require the Condominium to repair or replace property of an owner in an individual condominium unit after a casualty loss. The Court noted that the master policy requirement of the Act is intended to cover only damage sustained to the common elements or the structure of a condominium and not each owner's property or individual unit.

The Court noted that the Act thus recognizes the hybrid character of condominium ownership by differentiating between the treatment of common elements and individual units, with the owner being responsible for damage to his or her “airspace.”

The holding in this case will become effective after the Court issues its mandate, which is expected to occur sometime after May 15, 2008. Those affected are advised to promptly contact their attorneys and insurance carriers to discuss the ramifications of the holding on their particular situations.