More Categories

Rule 2-705 – Attorneys Fees to a Prevailing Party Pursuant to Contract

May 13, 2021 | Civil Prodcedure, Maryland

(a) Scope of Rule. This Rule applies to a claim for an award of attorneys’ fees to attributable to litigation in a circuit court pursuant to a contractual provision permitting an award of attorneys’ fees to the prevailing party in litigation arising out of the contract. It does not apply to a claim for attorneys’ fees allowed by contract as an element of damages for breach of the contract or to a claim for attorneys’ fees authorized by statute or other law.

Cross reference: See Rules 2-703 and 2-704.

(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 arise.
(c) Scheduling Conference and Order. If a claim for attorneys’ fees is made pursuant to this Rule, unless the court orders otherwise, the court shall conduct a scheduling conference in conformance with Rule 2-703(c).
(d) Enhanced Procedures and Requirements for Certain Cases. Upon a determination by the court that the case is one that likely will result in a substantial claim for attorneys’ fees covering a significant period of time, the court may enter orders in conformance with Rule 2-703(d).
(e) Determination of Award by Court. Upon a jury verdict or, in an action tried by the court, a finding by the court in favor of a party entitled to attorneys’ fees as a “prevailing party, the court shall determine the amount of an award in accordance with section (f) of this Rule.
(f) Factors to Be Considered.

(1) If the party seeking attorneys’ fees prevailed with respect to a claim for which fee-shifting is permissible, the court shall consider the factors set forth in Rule 2-703(f)(3) and the principal amount in dispute in the litigation, and may consider the agreement between party seeking the award and that party’s attorneys and any other factor reasonably related to the fairness of an award.
(2) If the claim for an award of attorneys’ fees does not exceed the lesser of 15% of the principal amount found to be due or $4,500, the court need not require evidence on all of the factors set forth in Rule 2-703(f)(3) if the party claiming the award produces evidence otherwise sufficient to demonstrate that the amount claimed is reasonable and does not exceed the amount that the claiming party has agreed to pay that party’s attorney. The evidence shall include at a minimum:

(A) a detailed description of the work performed, broken down by hours or factions thereof expended on each task;
(B) the amount or rate charged or agreed to in writing by the requesting party and the attorney; and
(C) the attorney’s customary fee for similar legal services.

Committee note: Subsection (f)(1) of this Rule follows the approach set forth in Monmouth Meadows v. Hamilton, 416 Md. 325 (2010), for contractual fee-shifting cases generally. Subsection (f)(2) of this Rule is intended to permit the court to excuse the need to consider all of the Rule 2-703(f)(3) factors where the claim for attorneys’ fees does not exceed the lesser of 15% of the amount due or $4,500. Fees in those limited amounts are common in consumer transactions and have been found reasonable by the General Assembly in some of those settings. See Code, Commercial Law Article, ยงยง 12-307.1 (Consumer Loans) and 12-623 (Retail Installment Sales).

(g) Part of Judgment. An award of attorneys’ fees shall be included in the judgment on the underlying cause of action but shall be separately stated. The court shall state on the record or in a memorandum filed in the record the basis for its findings and conclusions regarding the denial or issuance of an award.

Md. R. Civ. P. Cir. Ct. 2-705

This Rule is new.

Adopted Oct. 17, 2013, eff. Jan. 1, 2014.