Court of Special Appeals Upholds Order Against Seller of Modular Homes

BALTIMORE, MD ( July 1, 2010) -Attorney General Douglas F. Gansler announced today that the Court of Special Appeals has issued an opinion upholding the Consumer Protection Division’s finding that John P. Seisman and his company, Leedom, Inc., t/a Modular Home Express, violated Maryland’s home builder and consumer protection laws by selling modular homes to consumers without being registered as a home builder.

The Division issued an Order dated May 13, 2008, finding that Seisman and Leedom failed to comply with Maryland’s Home Builder Registration Act, Custom Home Protection Act, and Consumer Protection Act in its sale of modular homes to consumers. Seisman and Leedom were ordered to cease and desist from violating Maryland laws and to pay penalties of $809,000. Seisman, whose company has since changed its name to Commercial Building Systems, Inc., appealed to the Circuit Court for Baltimore County, which reversed the Division’s Order.

The Division appealed to the Court of Special Appeals, which reinstated the Order against Seisman, finding that the Division’s Order was supported by substantial evidence showing that Seisman and Leedom sold modular homes to Maryland consumers without being registered with the Division’s Home Builder Registration Unit. Maryland home builders, including sellers and installers of mobile and modular homes, are required to be registered with the Unit before conducting business in Maryland.