Opinions and documents
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
:
CARDEROCK COMMUNICATIONS, LLC
:
v. : Civil Action No. DKC 25-3093
:
T-MOBILE NORTHEAST LLC, et al.
:
MEMORANDUM OPINION
Presently pending and ready for resolution in this breach of
contract case is the motion to dismiss filed by T-Mobile Northeast
LLC (“T-Mobile Northeast”), T-Mobile USA, Inc. (“T-Mobile USA”),
APC Realty and Equipment Company LLC (“APC Realty”), and Sprint
(a/k/a Sprint Corporation) (collectively, “Defendants”). (ECF No.
9). The issues have been briefed, and the court now rules, no
hearing being deemed necessary. Local Rule 105.6. For the
following reasons, the motion to dismiss will be granted in part
and denied in part.
I. Background
Carderock Communications, LLC (“Carderock” or “Plaintiff”)
owns a telecommunications tower in Bethesda, Maryland. (ECF No.
2 ¶¶ 1, 10). Carderock licensed space on the communications tower
to multiple entities, including T-Mobile Northeast and APC Realty.
T-Mobile Northeast, which is owned by T-Mobile USA, engages in
telecommunications work within Maryland. (Id. ¶¶ 2, 3). APC
Realty similarly engages in telecommunications work in Maryland
and is affiliated with Sprint.1 (Id. ¶¶ 4, 5).
In June 2017, Carderock entered into a license agreement with
T-Mobile Northeast (“T-Mobile Northeast Agreement”), which allowed
T-Mobile Northeast to “install and maintain permitted equipment
and to transmit and receive” from Carderock’s telecommunications
tower. (Id. ¶¶ 10, 13). The T-Mobile Northeast Agreement lists
“T-Mobile” as the carrier. (Id. ¶ 15). Carderock had entered
into a similar license agreement with APC Realty in January 2013
(“APC Agreement”), which listed its carrier as Sprint Nextel. (Id.
¶¶ 17, 18).
Both the T-Mobile Northeast Agreement and the APC Agreement
contained clauses whereby Carderock would continue to be
compensated if one of its licensees merged or had a “business
combination” with another licensee. (Id. ¶¶ 25-27). The relevant
provision of the T-Mobile Northeast Agreement, section 2.2.h,
reads:
Notwithstanding anything contained in this
agreement to the contrary, if Licensee
acquires, merges with, forms any business
combination with, or acquires all or
substantially all of the assets of any other
licensee which is located on the Tower or
holds a license, sublicense, lease or sublease
1 According to Defendants’ corporate disclosures, APC Realty’s
sole member is Sprint Spectrum LLC. (ECF No. 13 ¶ 4). Sprint
Spectrum LLC’s sole member is Sprint LLC, whose sole member is T-
Mobile USA. (Id.).
2
for this Property or Premises (a “co-
licensee”), Licensee may not terminate this
Agreement pursuant to Section 2.2(e)(ii) or
Section 2.2(f) within (60) calendar months of
the completion of such transaction and the
then existing term of this License will remain
in full force and effect until the date that
that is sixty (60) calendar months from the
completion of the transaction or the
conclusion of the then existing term,
whichever is longer. In the event that any
co-licensee terminates its license under any
provision therein that is substantially
similar to Section 2.2(e)(ii) or Section
2.2(f) of this Agreement, or if the co-
licensee’s license expires within (60)
calendar months of the completion of the
transaction, Licensee shall pay Licensor all
sums that otherwise would have been paid to
Licensor by such co-licensee as if the license
had not been so terminated or the license had
not expired until sixty (60) months after the
completion of the transaction.
(Id. ¶ 25). The relevant provision of the APC Agreement, also
section 2.2.h, is slightly different:
Notwithstanding anything contained herein to
the contrary, if Licensee acquires or merges
with any other licensee which is located on
the tower or holds a license, sublicense,
lease or sublease for this Property or
Premises, Licensee may not terminate or cause
such licensee to terminate the license
agreement of such acquired or merged licensee
pursuant to Section 2.2(e)(ii) or Section
2.2(f) of this Agreement or such licensee’s
agreement within (60) calendar months of the
completion of a merger with or, acquisition
of, licensee.
(Id. ¶ 26). Sprint Corporation and T-Mobile USA, Inc. merged “on
or about April 1, 2020.” (Id. ¶ 28). Following the merger,
3
Carderock received a letter dated April 15, 2021, addressed to
“Sprint Cell Site Landlord.” (Id. ¶ 34). The letter, printed on
letterhead showing both Sprint and T-Mobile, “informed all ‘Sprint
Cell Site Landlords’ that ‘T-Mobile and Sprint are now one!’ and
discussed how the ‘two companies’ will transition to ‘integrate’
into one.”2 (Id.). T-Mobile Northeast provided an application
revision in March 2021 listing frequencies that were also listed
in the APC Agreement. (Id. ¶¶ 35, 36). T-Mobile USA began paying
a monthly license fee to Carderock for both the APC Agreement and
the T-Mobile Northeast Agreement, including both in a single check
as a lump sum payment. (Id. ¶ 39; ECF No. 15-5, at 4).
In August 2022, APC Realty sent a non-renewal notice ahead of
the end of the contract term which purported to allow the APC
2 Carderock muddies the complaint by referring to the
Defendants interchangeably. Plaintiff first states “T-Mobile USA,
Inc. and T-Mobile Northeast LLC are referred to herein, where
appropriate, as T-Mobile,” (ECF No. 2 ¶ 3), then later says that
all Defendants can be referred to as T-Mobile, (Id. ¶ 7).
Defendants dispute that all four are functionally one and the same
– “a merger involving T-Mobile Northeast’s parent company does not
mean T-Mobile Northeast (a separate legal entity) entered into a
business combination with Sprint (or APC Realty).” (ECF No. 9-1,
at 12). Because the status of corporate subsidiaries following
the merger is a legal conclusion, the court does not owe deference
to Plaintiff’s understanding of the corporate structure on a motion
to dismiss. See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).
4
Agreement to expire on January 30, 2023. (ECF No. 15-6, at 2).3
Under Section 2.1 of the APC Agreement:
The term of this Agreement shall begin on the
Commencement Date, and terminate at 11:59PM on
the day before the tenth (10th) anniversary of
the Commencement Date (“Initial Term”) unless
otherwise terminated as provided in this
Agreement. Provided Licensee is not in
default of its obligations hereunder, Licensee
shall have the right to extend the Term for
two (2) successive five (5) year periods
(each, a “Renewal Term”) on the same terms and
conditions as set forth herein. This
Agreement shall automatically be extended for
such successive Renewal Terms unless Licensee
notifies Licensor of its intention not to
renew this Agreement at least one hundred
twenty (120) days prior to the commencement of
the succeeding Renewal Term.
(ECF No. 15-1, at 3). Carderock stopped receiving payments
pursuant to the APC Agreement after the agreement expired. (ECF
No. 2 ¶ 48). The end of the APC Agreement term was approximately
three years after the merger between Sprint and T-Mobile USA.
Carderock alleges that Defendants were obliged to continue
making payments for APC Realty under the T-Mobile Northeast
Agreement for a full sixty months after the merger between Sprint
and T-Mobile USA. (Id. ¶ 51). When payment was requested,
Defendants responded that nothing in the APC Agreement barred its
3 ECF No. 15 contains the exhibits that were originally
attached to the complaint when it was filed in state court. Such
exhibits are part of the complaint and thus appropriate to consider
on a motion to dismiss. Fed.R.Civ.P. 10(c); see Faulkenberry v.
U.S. Dep't of Def., 670 F.Supp.3d 234, 249 (D.Md. 2023).
5
expiration, (ECF No. 15-7, at 2-3), and the merger of the two
parent companies did not create any obligations under the T-Mobile
Northeast Agreement, (ECF No. 15-8, at 2-3).
Carderock filed a complaint in the Circuit Court for
Montgomery County on August 15, 2025, (ECF No. 2), and Defendants
removed to this court on September 17, 2025, (ECF No. 1). The
complaint brings five counts: breach of contract by T-Mobile
Northeast and T-Mobile USA (Count I), breach of contract by APC
Realty and Sprint (Count II), intentional misrepresentation by T-
Mobile Northeast and T-Mobile USA (Count III), intentional
misrepresentation by APC Realty and Sprint (Count IV), and quantum
meruit against T-Mobile Northeast and T-Mobile USA (Count V).
Defendants filed a motion to dismiss on September 24, 2025. (ECF
No. 9). Carderock filed an opposition on October 8, 2025, (ECF
No. 14), and Defendants filed a reply on October 15, 2025, (ECF
No. 16).
II. Standard of Review
A motion to dismiss under Fed.R.Civ.P. 12(b)(6) tests the
sufficiency of the complaint. Presley v. City of Charlottesville,
464 F.3d 480, 483 (4th Cir. 2006). The court “must accept the
complaint’s factual allegations as true and construe the facts in
the light most favorable to the plaintiff.” Barnett v. Inova
Health Care Servs., 125 F.4th 465, 469 (4th Cir. 2025) (citing
6
Barbour v. Garland, 105 F.4th 579, 589 (4th Cir. 2024)). A
complaint must only satisfy Rule 8(a)(2), which requires a “short
and plain statement of the claim showing that the pleader is
entitled to relief.” Fed.R.Civ.P. 8(a)(2). “[W]here the well-
pleaded facts do not permit the court to infer more than the mere
possibility of misconduct, the complaint has alleged—but it has
not ‘show[n]’—that the pleader is entitled to relief.’” Ashcroft
v. Iqbal, 556 U.S. 662, 679 (2009) (quoting Fed.R.Civ.P. 8(a)(2)).
A Rule 8(a)(2) “showing” requires “stat[ing] a claim to relief
that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550
U.S. 544, 570 (2007). “A claim has facial plausibility when the
plaintiff pleads factual content that allows the court to draw the
reasonable inference that defendant is liable for the misconduct
alleged.” Mays v. Sprinkle, 992 F.3d 295, 299–300 (4th Cir. 2021)
(quoting Iqbal, 556 U.S. at 678). Legal conclusions couched as
factual allegations are insufficient, Iqbal, 556 U.S. at 678, as
are conclusory factual allegations devoid of any reference to
actual events, United Black Firefighters of Norfolk v. Hirst, 604
F.2d 844, 847 (4th Cir. 1979). The court may consider documents
attached to the complaint on a motion to dismiss, as well as
documents integral to the complaint that are attached to the motion
to dismiss if there is no dispute about their authenticity.
Faulkenberry, 670 F.Supp.3d at 249.
7
A fraud claim is subject to the heightened pleading standard
of Fed.R.Civ.P. 9(b). Harrison v. Westinghouse Savannah River
Co., 176 F.3d 776, 783 (4th Cir. 1999). Rule 9(b) provides that,
“in alleging fraud or mistake, a party must state with
particularity the circumstances constituting the fraud or mistake.
Malice, intent, knowledge and other conditions of a person's mind
may be alleged generally.” The circumstances required to be
pleaded with particularity “include the ‘time, place and contents
of the false representation, as well as the identity of the person
making the misrepresentation and what [was] obtained thereby.’”
Superior Bank, F.S.B. v. Tandem Nat'l Mortg., Inc., 197 F.Supp.2d
298, 313–14 (D.Md. 2000) (quoting Windsor Assocs., Inc. v.
Greenfeld, 564 F.Supp. 273, 280 (D.Md. 1983)). The purposes of
Rule 9(b) are to provide the defendant with sufficient notice of
the basis for the plaintiff's claim; to protect the defendant
against frivolous suits; to eliminate fraud actions where all the
facts are learned only after discovery; and to safeguard the
defendant's reputation. Harrison, 176 F.3d at 784.
III. Analysis
Plaintiff’s complaint only plausibly alleges a subset of its
claims. Counts II, III, and IV, in their entirety, and V, against
T-Mobile Northeast, will be dismissed. Counts I, in its entirety,
and V, against T-Mobile USA, will move forward.
8
A. Count I: Breach of Contract by T-Mobile Northeast and
T-Mobile USA
Under the language of the T-Mobile Northeast Agreement,
Plaintiff has sufficiently alleged a breach of contract claim
against T-Mobile Northeast and T-Mobile USA. Both the
interpretation of a contract and whether a contract is ambiguous
are ordinarily questions of law for the court.4 Tate v. Am. Gen.
Life Ins. Co., 627 F.Supp.3d 480, 490 (D.Md. 2022) (citing Grimes
v. Gouldmann, 232 Md.App. 230, 235 (2017); Calomiris v. Woods, 353
Md. 425, 434 (1999)). “The elements of a claim for breach of
contract include ‘contractual obligation, breach, and damages.’”
Tucker v. Specialized Loan Servicing, LLC, 83 F.Supp.3d 635, 655
(D.Md. 2015) (quoting Kumar v. Dhanda, 198 Md.App. 337, 345
(Md.Ct.Spec.App. 2011)).
Plaintiff alleges that the two Defendants breached the
obligations triggered by the “merger or business combination”
between the T-Mobile and Sprint parent companies. (ECF No. 2 ¶
48). The parties agree that both Carderock and T-Mobile Northeast
had contractual obligations under the T-Mobile Northeast
Agreement, (Id. ¶ 10; ECF No. 9-1, at 4), and Carderock has alleged
damages stemming from the breach, (ECF No. 2 ¶ 54). The only
4 This case was removed to this court from the Circuit Court
for Montgomery County, (ECF No. 1), and both parties agree that
Maryland law applies, (ECF Nos. 9-1, at 2; 14, at 19).
9
element in dispute is the breach itself. Following a merger or
business combination with another co-licensee on the Carderock
tower, the T-Mobile Northeast Agreement contemplates paying under
the terms of a contract with a merged licensee for a full five
years:
In the event that any co-licensee terminates
its license under any provision therein that
is substantially similar to Section 2.2(e)(ii)
or Section 2.2(f) of this Agreement, or if the
co-licensee’s license expires within (60)
calendar months of the completion of the
transaction, Licensee shall pay Licensor all
sums that otherwise would have been paid to
Licensor by such co-licensee as if the license
had not been so terminated or the license had
not expired until sixty (60) months after the
completion of the transaction.
(ECF Nos. 2 ¶ 25; 15, at 4). In their motion to dismiss, these
two Defendants seem to acknowledge that APC Realty is a “co-
licensee” of T-Mobile Northeast under this provision following the
merger of T-Mobile USA and Sprint. (ECF No. 9-1, at 9). Defendants
point only to the first triggering provision, however, saying it
could come into play if APC Realty “terminates its license under
any provision therein that is substantially similar to Sections
2.2(e)(ii) or Section 2.2(f).” (Id.). Because APC Realty did not
terminate its license, they argue, no obligation arose for T-
Mobile Northeast. But the T-Mobile Northeast Agreement
contemplates a second triggering possibility: if “the co-
licensee’s license expires within (60) calendar months of the
10
completion of the transaction.” Under this second triggering
event, T-Mobile Northeast had an obligation to pay Carderock “all
sums that otherwise would have been paid to [Carderock] by [APC
Realty] as if. . . the license had not expired until sixty (60)
months after the completion of the transaction.” (ECF Nos. 2 ¶
25; 15, at 4).
Seemingly realizing their error, Defendants argue in their
reply that the provision is inapplicable because T-Mobile
Northeast did not merge with APC Realty. (ECF No. 16, at 4). But
section 2.2.h does not require a formal merger between the
licensees. Rather, section 2.2.h is relevant “if [T-Mobile
Northeast] acquires, merges with, forms any business combination
with, or acquires all or substantially all of the assets of any
other licensee which is located on the Tower or holds a license .
. . for this Property or Premises (a ‘co-licensee’).” (ECF No. 2
¶ 25). The term “business combination” is not defined in the T-
Mobile Northeast Agreement. The agreement does contain a
requirement, however, that “[T-Mobile Northeast] shall only use
frequencies owned by [T-Mobile Northeast] and granted use of the
frequencies by the FCC.” (Id. ¶ 16). The APC Agreement contains
the same requirement. (Id. ¶ 24). In March 2021, T-Mobile
Northeast “obtained use of APC Realty’s spectrum (as Spring Nextel
frequencies),” which Carderock alleges triggered section 2.2.h of
11
the agreement. (Id. ¶ 30). When combined with the communications
about T-Mobile USA making payments related to both entities after
the parent companies’ merger, Carderock has plausibly alleged that
T-Mobile Northeast was in a “business combination” with APC Realty.
The motion to dismiss will be denied for the breach of contract
claim against T-Mobile Northeast.
The analysis differs for T-Mobile USA. “As a general rule,
‘a contract cannot be enforced by or against a person who is not
a party to it.’” Cecilia Schwaber Tr. Two v. Hartford Accident &
Indem. Co., 437 F.Supp.2d 485, 489 (D.Md. 2006) (quoting Crane Ice
Cream Co. v. Terminal Freezing & Heating Co., 147 Md. 588, 588
(Md. 1925)). Carderock alludes to T-Mobile USA acting as a
successor or assign of T-Mobile Northeast, (ECF No. 2 ¶ 43), as
contemplated in Section 24.2 of the T-Mobile Northeast Agreement,
(ECF No. 14, at 11 (“[T]erms and conditions contained in this
Agreement will bind and inure to the benefit of the Parties, their
respective . . . successors and assigns.”)). Carderock’s only
argument in support of T-Mobile USA’s status as a successor or
assign is that T-Mobile USA made payments under the T-Mobile
Northeast Agreement. (Id., at 4). While it is unclear whether
the payment is sufficient to give rise to succession or assignment,
the materials attached to the complaint have plausibly alleged
that T-Mobile USA accepted the contract after signing.
12
Parties can be bound by an agreement they did not sign if
they later accept or adopt the contract. Abbella Grp. Healthtech,
LLC v. Qualivis, LLC, No. 24-cv-00331-JMC, 2025 WL 2430018, at *7
(D.Md. Aug. 22, 2025). Acceptance can be express or manifested
through conduct. Id. Plaintiff has alleged sufficient facts to
make it plausible that T-Mobile USA accepted the contract. In a
letter addressed to “Sprint Landlords,” Carderock was informed
that “T-Mobile” would be taking over the payments for the sites
affiliated with Sprint. (ECF No. 15-4). The attached checks show
that T-Mobile USA made the payments for both the T-Mobile Northeast
site and the APC Realty site, paying one lump sum for both
agreements. (ECF Nos. 15-5; 2 ¶ 39). These facts support a
plausible claim that T-Mobile USA accepted the T-Mobile Northeast
Agreement and can be held liable for the breach. See Porter v.
Gen. Boiler Casing Co., 284 Md. 402, 414-15 (1979) (finding a fact
issue of whether a non-signatory defendant meant to be bound by a
union contract where it provided fringe benefits to union members);
Mehul's Inv. Corp. v. ABC Advisors, Inc., 130 F.Supp.2d 700, 708
(D.Md. 2001) (collecting cases about non-signatories manifesting
their acceptance of contracts). The motion to dismiss will be
denied for Count I.
13
B. Count II: Breach of Contract by APC Realty and Sprint
Carderock has failed to allege sufficient facts to plead a
plausible breach of contract claim against APC Realty. Carderock
asserts that allowing the APC Agreement to expire within sixty
months of the merger between Sprint Corporation and T-Mobile USA,
Inc. was a breach of section 2.2.h of the agreement. (ECF No. 2
¶¶ 58, 61-62). Section 2.2.h of the APC Agreement differs from
the provision in the T-Mobile Northeast Agreement. In case of a
merger or business combination, the APC Agreement only states that
APC Realty “may not terminate or cause such licensee to terminate
the license agreement of such acquired or merged licensee pursuant
to Section 2.2(e)(ii) or Section 2.2(f) of this Agreement or such
licensee’s agreement within (60) calendar months of the completion
of a merger with or, acquisition of, licensee.” (Id. ¶ 26).
Carderock argues that Section 2.2(f) applies here, which states in
part:
Licensee may terminate this Agreement. . . if
Licensee determines that, due to no fault or
action of Licensee, based on (i) technology,
or (ii) changes in system design or system
usage patterns, Licensee's use of the Licensed
Premises (as the same may have been modified
from time to time) is no longer consistent
with the optimal technological operation of
Licensee’s communications system.
(Id. ¶ 56). But Carderock does not allege that APC Realty
terminated due to technology or changes in system design; rather,
14
Carderock acknowledges that APC Realty chose not to renew the
contract at the end of the term, which is governed by Section 2.1.
(See ECF Nos. 2 ¶ 41, 61; 15-7, at 2). Carderock argues that the
non-renewal was ineffective but does not dispute that it was
timely; Carderock instead argues that the expiration of the term
was also barred by the merger provision. (ECF No. 14, at 10).
The unambiguous contract language cannot support such a
reading. The length of the APC Agreement and its renewal are
governed by the “Term” provision in Section 2.1, which states the
APC Agreement “shall automatically be extended . . . unless [APC
Realty] notifies [Carderock] of its intention not to renew this
Agreement at least one hundred twenty (120) days prior to the
commencement of the succeeding Renewal Term.” (ECF No. 15-1, at
3). This is separate from the “Termination” provision in Section
2.2, which contains the merger provision (Section 2.2.h) and the
two reasons for termination barred by the merger provision
(Sections 2.2(e)(ii) and 2.2(f)). There is no bar within Section
2.2.h on allowing the APC Agreement to expire under Section 2.1
following a merger. Count II will be dismissed against APC Realty.
The breach of contract claim against Sprint will also be
dismissed. Carderock alleged that Sprint was liable for a breach
of the APC Agreement; because Carderock has failed to plead a
breach of the APC Agreement, this claim necessarily fails.
15
C. Counts III and IV: Intentional Misrepresentation by
All Defendants
To plead intentional misrepresentation, Plaintiff must
allege:
(1) that the defendant made a false
representation to the plaintiff; (2) that its
falsity was either known to the defendant or
that the representation was made with reckless
indifference as to its truth; (3) that the
misrepresentation was made for the purpose of
defrauding the plaintiff; (4) that the
plaintiff relied on the misrepresentation and
had the right to rely on it; and (5) that the
plaintiff suffered compensable injury
resulting from the misrepresentation.
Shulman v. Progressive Com. Cas. Co., No. 19-cv-1709-DKC, 2020 WL
758239, at *4 (D.Md. Feb. 14, 2020) (citing Sass v. Andrew, 152
Md.App. 406, 429 (2003); Brass Metal Prods., Inc. v. E-J Enters.,
Inc., 189 Md.App. 310, 352 (2009)). Intentional misrepresentation
claims are subject to the heightened pleading burden of
Fed.R.Civ.P. 9(b), which provides “[i]n alleging fraud or mistake,
a party must state with particularity the circumstances
constituting fraud or mistake. Malice, intent, knowledge and other
conditions of a person's mind may be alleged generally.” Plaintiff
has not pleaded facts supporting an intentional misrepresentation
claim against any of the Defendants.
To meet the particularity required in Rule 9(b), Plaintiff
must point to “the ‘time, place and contents of the false
representation, as well as the identity of the person making the
16
misrepresentation and what [was] obtained thereby.’” Superior
Bank, F.S.B., 197 F.Supp.2d at 313 (alteration in original)
(quoting Windsor Assocs., Inc., 564 F.Supp. at 280). The only
specific representation that Plaintiff points to in support of its
intentional misrepresentation claim is a letter from Patricia
Hennelly, whom Plaintiff identifies as the Director of Legal
Affairs for Sprint and T-Mobile,5 dated August 9, 2023. (ECF No.
2 ¶¶ 66, 74). Carderock alleges that, within that letter, “T-
Mobile Northeast falsely stated to Carderock that T-Mobile had not
entered into a business combination with APC Realty and Sprint,”
(Id. ¶ 66), and APC Realty made essentially the same
misrepresentation. The statement is much less black and white
than Plaintiff paints it to be; the letter states Defendants’
disagreement with Plaintiff’s legal position about the impact of
the merger between T-Mobile USA and Sprint Corporation on the T-
Mobile Northeast Agreement. (ECF No. 15-8, at 2). Even if this
statement could be considered a false representation, Plaintiff
makes no argument about how it relied on this statement (which was
clearly made after the parties had established their disagreement
on how to read the contract), or how Plaintiff suffered an injury
5 Ms. Hennelly’s signature on the letter identifies her as
“Director, Legal Affairs” but does not list her particular company.
(ECF No. 15-8, at 4). The letter opens with a statement that “T-
Mobile has reviewed [Plaintiff’s] letter,” and the letterhead
includes logos for both Sprint and T-Mobile. (Id. at 2).
17
from this particular statement. This is insufficient to state a
claim of intentional misrepresentation against any of the
Defendants. Counts III and IV of the complaint will be dismissed.
D. Count V: Quantum Meruit against T-Mobile Northeast and
T-Mobile USA
Finally, Carderock brings a quantum meruit claim against both
T-Mobile Northeast and T-Mobile USA. Quantum meruit is a quasi-
contractual cause of action meant to allow a plaintiff to receive
compensation for its services in the absence of an enforceable
contract. See J.E. Dunn Constr. Co. v. S.R.P. Dev. Ltd. P'ship,
115 F.Supp.3d 593, 608 (D.Md. 2015); United States ex rel. Delval
Equip. Corp., Inc. v. E. Coast Welding & Constr. Co., No. 21-cv-
1244-ELH, 2022 WL 717046, at *23 (D.Md. Mar. 10, 2022). The claim
is unavailable against T-Mobile Northeast, because an express
contract governs the relationship between the parties. “In
Maryland, ‘[t]he general rule is that no quasi-contractual claim
can arise when a contract exists between the parties concerning
the same subject matter on which the quasi-contractual claim
rests.’” J.E. Dunn Const. Co., 115 F.Supp.3d at 608 (alteration
in original) (quoting Cnty. Comm’rs of Caroline Cnty. v. J. Roland
Dashiell & Sons, Inc., 358 Md. 83, 96 (2000)). Carderock is
seeking payment for the APC Agreement license fee after the APC
Realty contract expired, as it asserts that T-Mobile Northeast is
essentially receiving the benefits of both contracts for the price
18
of one. (ECF No. 2, ¶¶ 84-87). This is the same relief it is
seeking through its breach of contract action, and both parties
agree that there is an express contract between them.
While quantum meruit can be pleaded in the alternative
alongside breach of contract claims, this situation is not
applicable to T-Mobile Northeast. “Although a plaintiff may plead
in the alternative by asserting claims for [quantum meruit] and
breach of contract, when doing so the ‘plaintiff’s claim for
[quantum meruit] must include an allegation of fraud or bad faith
in the formation of the contract.’” J.E. Dunn Constr. Co., 115
F.Supp.3d at 608 (quoting Jones v. Pohanka Auto N., Inc., 43
F.Supp.3d 554, 573 (D.Md. 2014)). Plaintiff does not allege any
bad faith or fraud in relation to the formation of the contract;
Plaintiff’s intentional misrepresentation claims only arise from
the representations made after the merger between the Sprint and
T-Mobile parent companies, which was years after both contracts
were formed. Because there is an express written contract between
the parties, quantum meruit is unavailable and the claim against
T-Mobile Northeast will be dismissed.
Quantum meruit is available in the alternative against T-
Mobile USA, however, because the existence of a contractual
relationship between Carderock and T-Mobile USA is disputed. See
Swedish Civil Aviation Admin. v. Project Mgmt. Enters., Inc., 190
19
F.Supp.2d 785, 792 (D.Md. 2002) (“[A]lthough [plaintiff] may not
recover under both contract and quasi-contract theories, it is not
barred from pleading these theories in the alternative where the
existence of a contract concerning the subject matter is in
dispute.” (second alteration in original)). According to Maryland
courts:
Three elements must be established by a
plaintiff to sustain a claim for quantum
meruit: “(1) [a] benefit conferred upon the
defendant by the plaintiff; (2) an
appreciation or knowledge by the defendant of
the benefit; and (3) the acceptance or
retention by the defendant of the benefit
under such circumstances as to make it
inequitable for the defendant to retain the
benefit without the payment of its value.”
J.E. Dunn Const. Co., 115 F.Supp.3d at 604-605 (alteration in
original) (quoting Paramount Brokers, Inc. v. Digit. River, Inc.,
126 F.Supp.2d 939, 946 (D.Md. 2000)). Plaintiff has sufficiently
alleged all three elements. T-Mobile USA received the benefit of
both T-Mobile Northeast’s space on Carderock’s tower and APC
Realty’s space, while paying for only the use of T-Mobile
Northeast’s space.6 (ECF No. 2 ¶ 80). Carderock has sufficiently
6 Defendants bring up for the first time in reply that the
use of Sprint’s frequency is not a benefit that Carderock can
directly confer, as the frequencies are granted by the Federal
Communications Commission. (ECF No. 16, at 7-8). Plaintiff’s
complaint does discuss T-Mobile Northeast’s possible use of
frequencies belonging to Sprint in its complaint, (ECF No. 2 ¶¶
80-81), but does not directly claim that it is a benefit conferred
by Carderock. In contrast, Plaintiff clearly states “[t]he use of
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alleged that T-Mobile USA was aware of the benefit, as T-Mobile
USA and T-Mobile Northeast continued to use the tower and premises
following Carderock’s protest about the lack of payment after the
expiration of the APC Agreement.7 (Id. ¶¶ 84-86). Finally,
Plaintiff has alleged that T-Mobile USA’s retention of the benefit
would be inequitable, as Plaintiff argues the T-Mobile Northeast
Agreement contemplates payments for Plaintiff under these
circumstances. Because it is unclear at this stage if T-Mobile
USA is bound by the T-Mobile Northeast Agreement, the agreement
does not bar a quantum meruit claim. The motion to dismiss Count
V against T-Mobile USA will be denied.
the Tower and Premises conferred a benefit upon Defendants,” (Id.
¶ 82). There is no question that the telecommunications tower and
premises are a benefit controlled by Plaintiff, which is sufficient
to survive a motion to dismiss.
7 Also for the first time in their Reply, Defendants argue
that they removed all APC Realty equipment from Carderock’s tower
and premises following the expiration of the APC Agreement. (ECF
No. 16, at 8-9). The status of the APC Realty equipment is not
included in the complaint, though some of the letters attached to
the complaint discuss plans to remove the equipment after the APC
Agreement expired. (ECF Nos. 15-6 at 2; 15-7 at 3). Defendants
only moved to dismiss, however, based on the contract between T-
Mobile Northeast and Carderock. (ECF No. 9, at 14). The factual
question about whether T-Mobile USA is receiving the benefit of
both spaces on Carderock’s tower is inappropriate for resolution
at the motion to dismiss stage.
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IV. Conclusion
For the foregoing reasons, Defendants’ motion to dismiss will
be granted in part and denied in part. A separate order will
follow.
/s/
DEBORAH K. CHASANOW
United States District Judge
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