Hess Construction Co. v. Board of Education

669 A.2d 1352, 341 Md. 155, 1996 Md. LEXIS 3
CourtCourt of Appeals of Maryland
DecidedJanuary 17, 1996
DocketNo. 37
StatusPublished
Cited by40 cases

This text of 669 A.2d 1352 (Hess Construction Co. v. Board of Education) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hess Construction Co. v. Board of Education, 669 A.2d 1352, 341 Md. 155, 1996 Md. LEXIS 3 (Md. 1996).

Opinion

RODOWSKY, Judge.

Maryland Rules, Chapter 1100, “Special Proceedings,” Subtitle BE, “Mandamus,” Rule BE44, “Damages,” provides:

[158]*158“In an action brought pursuant to this Subtitle, the plaintiff shall have the right to claim and prove his damages, if any, and the court, in entering judgment that the writ of mandamus shall issue, may also award such damages to the plaintiff as he shall have proven.”

The petition for certiorari in this case presents this question: “Is the Petitioner entitled to recover attorney’s fees under Rule BE-44 or in actions for mandamus generally?” The Court of Special Appeals answered in the negative. Hess Constr. Co. v. Board of Educ. of Prince George’s County, 102 Md.App. 736, 651 A.2d 446 (1995). We agree with the Court of Special Appeals for the reasons set forth below.

Respondent, The Board of Education of Prince George’s County (the Board), in November 1993 issued a request for lump sum sealed bids for the construction of an elementary school in Laurel. Maryland Code (1978, 1992 Repl.Vol., 1995 Cum.Supp.), § 5—110(c)(1) of the Education Article (Ed.) required the Board to award the contract to “the lowest responsible bidder who conforms to specifications with consideration given to” certain enumerated factors. After bid opening the Board notified the petitioner, Hess Construction Company (Hess), that it was the lowest bidder and that the contract would be awarded to it at the next Board meeting. The next lowest bidder, however, challenged award of the contract to Hess, alleging that Hess’s bid was nonresponsive to the bidding requirements. At its meeting in December 1993 the Board rejected all bids and determined to readvertise the entire project.1

Hess instituted the instant action against the Board in the Circuit Court for Prince George’s County. The relief sought included a writ of mandamus and attorney’s fees. The circuit court issued a preliminary injunction against resolicitation of bids on the project. Following a four day trial on the merits in February 1994, the circuit court entered judgment in favor of Hess, issuing a “mandamus” directing the Board to award [159]*159the contract to Hess. The Board did not appeal from the judgment adverse to it.

In an oral opinion at the end of the trial the circuit court indicated that it intended to award attorney’s fees to Hess, but the court deferred entering any order on that issue, pending briefing and further argument. In a legal memorandum to the circuit court Hess argued that “[i]n this case, the legislative authority for the award of attorneys’ fees is set forth in Maryland Rule BE 44.” The circuit court nevertheless concluded that it was “confined by the law,” stating that “[t]he general rule in Maryland is that attorneys fees are not recoverable unless approved by statute or contract.”

Hess appealed to the Court of Special Appeals. There Hess argued that “damages” as used in Rule BE44 included attorney’s fees, based on history, certain decisions by other courts, and Maryland public policy. The Court of Special Appeals affirmed the circuit court.2

The “American Rule” is that attorney’s fees are ordinarily not recoverable by a prevailing party in a lawsuit. Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 247, 95 S.Ct. 1612, 1616, 44 L.Ed.2d 141, 147 (1975). “In Maryland, ‘[t]he general rule is that costs and expenses of litigation, other than the usual and ordinary Court costs, are not recoverable in an action for [compensatory] damages.’ ” Collier v. MD-Individual Practice Ass’n, 327 Md. 1, 11, 607 A.2d 537, 542 (1992) (quoting McGaw v. Acker, Merrall & Condit Co., 111 Md. 153, 160, 73 A. 731, 734 (1909)). Compare St. Luke Evangelical Lutheran Church, Inc. v. Smith, 318 Md. 337, 568 A.2d 35 (1990) (permitting counsel fees of prevailing [160]*160party to be considered where punitive damages may be awarded).

Attorney’s fees may be awarded where a statute allows for the imposition of such fees, Freedman v. Seidler, 233 Md. 39, 47, 194 A.2d 778, 783 (1963); Mercedes-Benz of North America, Inc. v. Garten, 94 Md.App. 547, 618 A.2d 233 (1993), and where parties to a contract have an agreement regarding attorney’s fees. Empire Realty Co. v. Fleisher, 269 Md. 278, 286, 305 A.2d 144, 148 (1973) (citing Webster v. People’s Loan, Savings & Deposit Bank, 160 Md. 57, 152 A. 815 (1931)). Where the wrongful conduct of a defendant forces a plaintiff into litigation with a third party, the plaintiff may recover from the defendant, as damages, reasonable counsel fees incurred in the action with the third party. McGaw, 111 Md. at 160, 73 A. at 734. See also Empire Realty Co., 269 Md. at 286, 305 A.2d at 148; Fowler v. Benton, 245 Md. 540, 550, 226 A.2d 556, 563, cert. denied, 389 U.S. 851, 88 S.Ct. 42, 19 L.Ed.2d 119 (1967); Bohle v. Thompson, 78 Md.App. 614, 639-40, 554 A.2d 818, 830-31, cert. denied, 316 Md. 364, 558 A.2d 1206 (1989). Additionally, a plaintiff in a malicious prosecution action, who has incurred counsel fees in the defense of the criminal charge, may be awarded those fees as damages in the civil action. Tully v. Dasher, 250 Md. 424, 442, 244 A.2d 207, 217 (1968); but cf. Solko v. State Roads Comm’n, 82 Md.App. 137, 153, 570 A.2d 373, 381, cert. denied, 320 Md. 222, 577 A.2d 50 (1990) (holding that attorney’s fees are not “just compensation” in condemnation proceedings).

But exceptions are quite rare under Maryland common law to the general rule that counsel fees, incurred by the prevailing party in the very litigation in which that party prevailed, are not recoverable as compensatory damages against the losing party. The principal exception is for counsel fees incurred by an insured in successful litigation with a liability insurer which denied coverage or a duty to defend. See Nolt v. United States Fidelity & Guar. Co., 329 Md. 52, 617 A.2d 578 (1993); Bausch & Lomb Inc. v. Utica Mut. Ins. Co., 330 Md. 758, 790, 625 A.2d 1021, 1037 (1993); Collier, 327 [161]*161Md. 1, 607 A.2d 537; Continental Casualty Co. v. Board of Educ. of Charles County, 302 Md. 516, 489 A.2d 536 (1985); Bankers & Shippers Ins. Co. v. Electro Enters., Inc., 287 Md. 641, 415 A.2d 278 (1980); Government Employees Ins. Co. v. Taylor, 270 Md. 11, 310 A.2d 49 (1973). In Collier we called this exception under Maryland common law an “anomaly.” 327 Md. at 17, 607 A.2d at 544.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Neal v. United States
D. Maryland, 2022
Wheeling v. Selene Finance
250 A.3d 197 (Court of Appeals of Maryland, 2021)
Poole v. Bureau of Support Enforcement Ex Rel. Roebuck
192 A.3d 768 (Court of Special Appeals of Maryland, 2018)
Eastern Shore Title Co. v. Ochse
Court of Appeals of Maryland, 2017
State v. Braverman
137 A.3d 377 (Court of Special Appeals of Maryland, 2016)
Bontempo v. Lare
90 A.3d 559 (Court of Special Appeals of Maryland, 2014)
Carroll Co. v. Sherwin-Williams Co.
848 F. Supp. 2d 557 (D. Maryland, 2012)
Boland v. Boland
31 A.3d 529 (Court of Appeals of Maryland, 2011)
Henriquez v. Henriquez
992 A.2d 446 (Court of Appeals of Maryland, 2010)
Monarc Construction, Inc. v. Aris Corp.
981 A.2d 822 (Court of Special Appeals of Maryland, 2009)
Accubid Excavation, Inc. v. Kennedy Contractors, Inc.
981 A.2d 727 (Court of Special Appeals of Maryland, 2009)
Programmers' Consortium, Inc. v. Clark
951 A.2d 914 (Court of Special Appeals of Maryland, 2008)
Wells Fargo Bank Minnesota, N.A. v. Diamond Point Plaza L.P.
908 A.2d 684 (Court of Special Appeals of Maryland, 2006)
Bahena v. Foster
883 A.2d 218 (Court of Special Appeals of Maryland, 2005)
Greenbriar Condominium, Phase I, Council of Unit Owners, Inc. v. Brooks
859 A.2d 239 (Court of Special Appeals of Maryland, 2004)
Campbell v. Lake Hallowell Homeowners Ass'n
852 A.2d 1029 (Court of Special Appeals of Maryland, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
669 A.2d 1352, 341 Md. 155, 1996 Md. LEXIS 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hess-construction-co-v-board-of-education-md-1996.