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Rule 2-703 – Attorneys Fees Allowed by Law

May 13, 2021 | Civil Prodcedure, Maryland

(a) Scope of Rule. This Rule applies to claims for attorneys’ fees allowable by law to a party in an action in a circuit court.

Committee note: This Rule applies predominantly to actions in which attorneys’ fees are allowed by statute. This Rule would also apply where attorneys’ fees may be awarded under common law or by a Rule, other than as set forth in Rule 2-702(b).

(b) Pleading. A party who seeks attorneys’ fees from another party pursuant to this Rule shall include a claim for such fees in the party’s initial pleading or, if the grounds for such a claim arise after the initial pleading is filed, in an amended pleading filed promptly after the grounds for the claim arose.
(c) Scheduling Conference and Order. Unless the court orders otherwise, if a claim for attorneys’ fees is made pursuant to this Rule, the court shall conduct a scheduling conference and, as part of a scheduling order entered pursuant to Rule 2-504 shall:

(1) determine whether to require enhanced documentation, quarterly statements, or other procedures permitted by section (d) of this Rule;
(2) determine whether evidence regarding the party’s entitlement to attorneys’ fees or the amount thereof may practicably be submitted during the parties’ cases-in-chief with respect to the underlying cause of action or should await a verdict by the jury or finding by the court with respect to that underlying cause of action; and
(3) in light of the determination made under subsection (c)(2), determine whether, pursuant to section (f) of this Rule, any award of attorneys’ fees will be included in the judgment entered on the underlying cause of action or as a separate judgment.

Committee note: If the court intends to delay the presentation of evidence on the claim for attorneys fees until after a determination of the underlying cause of action, but desires to enter one judgment that would include the denial or grant of an award of attorneys’ fees, the jury’s verdict or court findings on the underlying cause of action should be docketed, but the court must assure that no judgment is entered on the verdict or findings until the claim for attorneys’ fees is resolved.

(d) Enhanced Procedures and Requirements for Certain Cases. Upon a determination by the court that the case is likely to result in a substantial claim for attorneys’ fees for services over a significant period of time, the court may:

(1) require parties seeking an award (A) to keep time records in a specific manner, and (B) to provide to parties against whom an award is sought quarterly statements showing the total amount of time all attorneys, paralegals, and other professionals have spent on the case during the quarter and the total value of that time;
(2) determine whether, and to what extent, the Guidelines Regarding Compensable and Non-Compensable Attorneys’ Fees and Related Expenses contained in an Appendix to this Chapter shall be applied; and
(3) establish procedures and time schedules for the presentation of evidence and argument on issues relating to a party’s entitlement to an award and the amount thereof.
(e) Evidence. Evidence in support of or in opposition to an award shall focus on the standards set forth in subsection (f)(3) of this Rule.
(f) Determination of Award.

(1)If No Award Permitted. If, under applicable law, the verdict of a jury or the findings of the court on the underlying cause of action do not permit an award of attorneys’ fees, the court shall include in its judgment entered on the underlying cause of action the denial of such an award.
(2)If Award Permitted or Required. If, under applicable law, the verdict of the jury or the findings of the court on the underlying cause of action permit but do not require an award of attorneys’ fees, the court shall determine whether an award should be made. If the court determines that a permitted award should be made or that under applicable law an award is required, the court shall apply the standards set forth in subsection (f)(3) of this Rule and determine the amount of the award.

Committee note: Where the claim for attorneys’ fees is based on law, rather than a contract, the determination of whether, in light of the verdict or findings on the underlying cause of action, an award must or should be made and, if so, the amount thereof is for the court. See Admiral Mortgage v. Cooper, 357 Md. 533, 550-53 (2000); Friolo v. Frankel, 373 Md. 501, 519 (2003); Friolo v. Frankel, 403 Md. 443, 457, n.12 (2008).

(3)Factors to Be Considered.

(A) the time and labor required;
(B) the novelty and difficulty of the questions;
(C) the skill required to perform the legal service properly;
(D) whether acceptance of the case precluded other employment by the attorney;
(E) the customary fee for similar legal services;
(F) whether the fee is fixed or contingent;
(G) any time limitations imposed by the client or the circumstances;
(H) the amount involved and the results obtained;
(I) the experience, reputation, and ability of the attorneys;
(J) the undesirability of the case;
(K) the nature and length of the professional relationship with the client; and
(L) awards in similar cases.

Committee note: The factors listed in subsection (f)(3) of this Rule have been approved by the Court of Appeals in statutory fee-shifting cases, where the “lodestar method is applied in determining an award. See Monmouth Meadows v. Hamilton, 416 Md. 325, 333-34 (2010). See Rule 2-704(f) for the factors to be applied in contractual fee-shifting actions.

(g) Judgment. Except as provided in subsection (f)(1) of this Rule, the grant or denial of an award of attorneys’ fees may be included in the judgment on the underlying cause of action or in a separate judgment, as directed by the court. The court shall state on the record or in a memorandum filed in the record the basis for its grant or denial of an award.

Md. R. Civ. P. Cir. Ct. 2-703

This Rule is new.

Adopted Oct. 17, 2013, eff. Jan. 1, 2014. Amended Sept. 17, 2015, eff. Jan. 1, 2016.

HISTORICAL NOTES

2015 Orders

The September 17, 2015, order, corrected a reference in a Committee note.

Committee note: This Rule applies predominantly to actions in which attorneys’ fees are allowed by statute. This Rule would also apply where attorneys’ fees may be awarded under common law or by a Rule, other than as set forth in Rule 2-702(b).