Opinion ID: 2394603
Heading Depth: 1
Heading Rank: 6

Heading: Continuation of Events Theory

Text: This Court recognizes the continuation of events theory, in which the statute of limitations is tolled during the existence of a fiduciary relationship between the parties. Dual Inc., 383 Md. at 173, 857 A.2d at 1107. In Vincent v. Palmer, 179 Md. 365, 19 A.2d 183 (1941), this Court applied the continuation of events theory to an ongoing employment relationship, where the employment contract did not mention a finite period of employment. Vincent, 179 Md. at 374, 19 A.2d at 189. Similarly, in Waldman v. Rohrbaugh, 241 Md. 137, 215 A.2d 825 (1966), we applied this theory to ongoing medical treatment, noting that if the facts show continuing medical or surgical treatment for a particular illness or condition in the course of which there is malpractice producing or aggravating harm, the cause of action of the patient accrues at the end of the treatment for that particular illness, injury or condition, unless the patient sooner knew or reasonably should have known of the injury or harm, in which case the statute would start to run with actual or constructive knowledge. Waldman, 241 Md. at 142, 215 A.2d at 828. The common reasoning in cases where we have applied the continuation of events theory is that a relationship which is built on trust and confidence generally gives the confiding party the right to relax his or her guard and rely on the good faith of the other party so long as the relationship continues to exist. Frederick Rd., 360 Md. at 97-98, 756 A.2d at 975. In Dual, this Court noted that mere conclusory allegations of a fiduciary relation ship are insufficient to support the application of the continuation of events theory. Dual, 383 Md. at 173-74, 857 A.2d at 1107-08. Instead, the Court required specific facts supporting such a relationship. Id. at 173, 857 A.2d at 1107. This Court has held that, absent special circumstances to the contrary, the landlord-tenant relationship is a contractual relationship. Rhaney v. Univ. of Maryland E. Shore, 388 Md. 585, 602, 880 A.2d 357, 367 (2005); see also Dugan v. First Nat'l Bank in Wichita, 227 Kan. 201, 209, 606 P.2d 1009, 1016 (1980) (noting, of the lessor-lessee relationship, under usual circumstances this is not a confidential relationship). In this case, appellant and appellee had an arm's-length contractual relationship. We hold that, as a matter of law, there are no specific facts in this case that would support a determination that the parties had a relationship built on trust and confidence such that appellant had a right to rely on appellee's good faith. Furthermore, even if appellant and appellee had a fiduciary relationship, the continuation of events theory does not toll the statute of limitations where a party had knowledge of facts that would lead a reasonable person to undertake an investigation that, with reasonable diligence, would have revealed wrongdoing on the part of the fiduciary. Dual, 383 Md. at 174, 857 A.2d at 1108. Because the jury determined that appellant knew or should have known of the unfair and deceptive trade practices on October 28, 1998, the continuation of events theory does not toll the statute of limitations.