G-C P'ship v. Schaefer

In G-C P'ship v. Schaefer, 358 Md. 485, 488, 749 A.2d 823 (2000), a case involving issues of appealability, the Court of Appeals dismissed an appeal from a trial court's judgments as to contract damages filed before the court ruled on a claim for contractually-based attorney's fees, id. at 487-89, where the merits of the case involved a breach of a guaranty agreement and the request for fees was based on a provision for attorney's fees in that agreement obligating the guarantors to pay for "'all legal and other expenses paid or incurred in enforcing the Guaranty.'" (Id. at 486.) In so holding, the Court of Appeals reversed our decision in that case, where the Court (1) cited to Mattvidi Assocs. Ltd. P'ship, supra, for the proposition that "'attorney's fees pursuant to a contractual provision are "part of the prevailing party's damage claim,"' but (2) nonetheless concluded that such fees could be awarded because the court could exercise discretion under Maryland Rule 8-602(e)(1)(C) to enter a final judgment on its own initiative. (G-C P'ship, 358 Md. at 487-88.) This holding, stated the Court of Appeals, was erroneous: Rule 8-602(e)(1)(C) is not applicable to the circumstances of the instant matter. The circuit court did not have discretion to direct the entry of a final judgment pursuant to Rule 2-602(b) based on the summary judgment rulings made on June 19, 1998. This is because the counsel fees that were awardable pursuant to the contract form part of the claim for breach of contract, but they had not been determined when the 1998 appeal was noted. Rule 2-602(b) may not be used to certify as final only part of a claim. (Id. at 488.)