ZARNOCH, Judge.
Appellant, Hyundai Motor America, is appealing a decision by the Circuit Court for Cecil County awarding attorney’s fees to appellee, Angela Alley, under the fee shifting provisions of the Maryland Automotive Warranty Enforcement Act, the Maryland Consumer Protection Act, and the federal Magnuson-Moss Warranty Act. The fees were awarded after the
parties negotiated a settlement of the case, and prior to any adjudication of the merits of appellee’s claims. Appellant presents the following questions:
1. Did the circuit court err in granting appellee’s petition ' for attorney’s fees and costs based on a finding that appellee was a prevailing party under the fee shifting statutes at issue?
2. Did appellee satisfy her burden of presenting legally sufficient evidence as to the reasonableness of the fees claimed in order to support any fee award by the circuit court?
3. Did the circuit court properly apply the lodestar analysis in determining the amount of attorney’s fees to award?
For the following reasons, we affirm in part and vacate and remand in part.
FACTS AND LEGAL PROCEEDINGS
On June 19, 2006, Angela R. Alley (“Alley”), appellee, filed suit against Hyundai Motor America (“Hyundai”), appellant, in the Circuit Court for Cecil County, relating to the purchase of a new vehicle that was defective. Appellee alleged various claims arising under the Maryland Automotive Warranty Enforcement Act (“AWEA”), Md.Code Ann. (1975, 2005 Repl. Vol., 2007 Supp.), § § 14-1501
et seq.
of the Commercial Law (CL) Article; the Consumer Protection Act (“CPA”), Md.Code Ann., CL §§ 13-301
et seq.;
and the Magnuson-Moss Warranty Act (“MMWA”), 15 U.S.C.A. §§ 2301. Appellee sought monetary damages, in an amount equal to the full contract price ($20,317) of the new 2005 Hyundai Sonata, plus “all collateral charges, attorney’s fees, and court costs.” A jury trial was scheduled for May 29, 2007.
On the day of the trial, after the court convened, but before the jury was selected, Hyundai and Alley reached a settlement under which Hyundai agreed to “swap-out” the one-year-old
2005 Sonata with a new 2007 Sonata equipped with the same options as the vehicle replaced. The settlement agreement was read into the record in open court.
Reciting the details of the settlement, Hyundai’s counsel admitted that the new vehicle was worth “so much more” than the old vehicle. Left unsettled was whether appellee was entitled to attorney’s fees. The parties asked the court to retain jurisdiction over a petition for attorney’s fees, which it did. The court did not expressly approve the settlement.
The recital of the settlement ended with Hyundai’s counsel stating that “this case will be dismissed with prejudice, as of today, with the agreement of the swap being put on the record.” However, no docket entry reflects a dismissal, either by court order or stipulation of the parties.
See
Maryland Rule 2-506.
On June 28, 2007, appellee filed a timely motion for attorney’s fees and costs totaling $12,311.40. As part of the motion, appellee presented a four-page invoice, dated June 27, 2007, from her attorney’s law firm, Kimmel & Silverman, P.C., with the dates various services were rendered, the initials of the person performing the task, a brief description of the service provided, the hours expended, the rate charge, and amount charged, which totaled $12,311.40.
Appellant filed a response in opposition to the motion, arguing that the appellee was not a prevailing party for fee-shifting purposes, and was therefore not eligible for an award of attorney’s fees and costs. It also claimed that, if the appellee were a prevailing party, she failed to satisfy her burden of presenting sufficient evidence as to the reasonableness of the fees requested.
On September 6, 2007, the court heard both parties regarding the motion for attorney’s fees and granted appellee attorney’s fees in the amount requested. At the hearing, appellee’s counsel noted that Maryland courts apply the lodestar approach
(see
discussion, pp. 275-78, 960 A.2d at pp. 1265-67,
infra)
in determining the amount of reasonable attorney’s fees. He noted that his standard billing rate as an attorney with fifteen years experience was $275.00/hour. He claimed that all the rates listed in the law office’s invoice were reasonable, and that under the lodestar methodology the firm could charge $90.00/hour for a paralegal, with differing rates for the attorneys depending upon the level of experience. He admitted that his firm had accepted the case on a contingency fee basis. The court found that appellee was a prevailing party and that the attorney’s fees claimed were reasonable. Without any further analysis under the lodestar approach, the court granted appellee’s motion and awarded attorney’s fees in the requested amount.
On September 26, 2007, appellant
filed a timely notice of appeal.
DISCUSSION
1. The circuit court did not err in finding that appellee was a prevailing party under state fee shifting statutes.
Appellant argues that the court erred as a matter of law in granting appellee’s petition for attorney’s fees because she was not a prevailing party under the fee-shifting provisions of AWEA, MMWA, and CPA. Because they arose from “a common core of facts” and “related legal theories,” appellee’s state and federal claims are indivisible for purposes of determining prevailing party status.
Friolo v. Frankel,
373 Md. 501, 524-25, 819 A.2d 354
(2003)(“Friolo
I”). Thus, we need only decide whether appellee is a prevailing party for state law purposes, rather than determine her success under the federal MMWA.
See Moedt v. Gen. Motors Corp.,
204 Ariz. 100, 60 P.3d 240, 243 (Ct.App.2002) (awarding attorney’s fees under state lemon law without addressing eligibility under MMWA). For the reasons set forth below, we conclude that appellee was a prevailing party under AWEA and CPA.
According to AWEA, “a court
may
award
reasonable
attorney’s fees to a prevailing plaintiff under this section.” CL § 14-1502(Z)(1) (emphasis added). The CPA also provides
that “[a]ny person who brings an action to recover for injury or loss under this section and who is awarded damages
may
also seek, and the court
may
award,
reasonable
attorney’s fees.” CL § 13-408(b) (emphasis added). Under the MMWA:
If a consumer finally prevails in any action brought under paragraph (1) of this subsection, he
may
be allowed by the court to recover
as part of the judgment
a sum equal to the aggregate amount of cost and expenses (including
attorneys’ fees based on actual time expended)
determined by the court to have been
reasonably incurred
by the plaintiff for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys’ fees would be inappropriate.
15 U.S.C.A. § 2310(d)(2) (emphasis added).
Although appellant concedes that, under these statutes, a settlement can confer prevailing party status on a litigant, it argues that such a settlement must take the form of a consent decree or other court-approved change in the legal relationship of the parties. Relying primarily on federal cases, such as the Supreme Court’s 5-4 decision in
Buckhannon Bd. & Care Home, Inc. v. W.Va. Dept. of Health & Human Res.,
532 U.S. 598, 121 S.Ct. 1835, 149 L.Ed.2d 855 (2001), appellant argues that “[a] defendant’s voluntary change in conduct, although perhaps accomplishing what the plaintiff sought to achieve by the lawsuit, lacks the necessary judicial
imprimatur
on the change.”
Id.
at 605, 121 S.Ct. 1835. These “[pjrivate settlements,” the Supreme Court said, will often be unenforceable by a federal court “unless the terms of the agreement are incorporated into the order of dismissal.”
Id.
at 604, n. 7, 121 S.Ct. 1835.
Appellant may very well be correct that under federal statutes, such as MMWA, actual judicial approval of a settlement, such as that obtained in a consent decree, is required before an attorney’s fee award can be made.
See Rodriguez-Freytas v. N.Y. City Transit Authority,
95 F.App’x 392, 394
(2d Cir.2004);
Union of Needletrades, Indus. & Textile Employees, AFL-CIO, CLC v. U.S. Immigration & Naturalization Service,
336 F.3d 200, 206 (2d Cir.2003);
Pitchford v. Oakwood Mobile Homes, Inc.,
212 F.Supp.2d 613, 617 (W.D.Va.2002);
Bruemmer v. Compaq Computer Corp.,
329 Ill.App.3d 755, 263 Ill.Dec. 516, 768 N.E.2d 276, 288 (2002).
But see American Disability Ass’n v. Chmielarz,
289 F.3d 1315, 1320 (11th Cir.2002) (court may still award attorney’s fees to prevailing party as long as: (1) it has incorporated terms of settlement into final order of dismissal or (2) it has explicitly retained jurisdiction to enforce terms of settlement);
Dufresne v. DaimlerChrysler Corp.,
975 So.2d 555, 556 (Fla. 2d DCA 2008) (quoting
Smalbein ex rel. Estate of Smalbein v. City of Daytona Beach,
353 F.3d 901, 905 (11th Cir.2003)) (explicit retention of jurisdiction over terms of settlement is functional equivalent of entry of consent decree);
Melton v. Frigidaire,
346 Ill.App.3d 331, 281 Ill.Dec. 954, 805 N.E.2d 322, 327 (2004) (consent degree not required if judicial sanction is obtained by incorporation of settlement agreement into court order or on retention of jurisdiction to enforce its terms). However, here we are concerned only with state law. Thus,
Buckhannon
is not controlling.
Alternatively, appellant contends that this Court’s decision in
Blaylock v. Johns Hopkins Fed. Credit Union,
152 Md.App. 338, 831 A.2d 1120 (2003) requires actual judicial approval of a settlement agreement before a party is considered to have prevailed for State fee-shifting purposes. In
Blaylock,
this Court held that a consumer who settled a claim under the CPA was a prevailing party for fee-shifting purposes and noted:
[A] consumer who achieves victory by means of an agreement
approved by the court
is entitled to attorney’s fees, even though no consent decree or judgment is entered in favor of the prevailing party.
Id.
at 355, 831 A.2d 1120 (emphasis added).
Appellant places undue reliance on the emphasized language. Under the facts of
Blaylock,
the settlement in ques
tion “was approved by the court.”
Id.
at 341, 831 A.2d 1120. The Court’s later equation of such a settlement with prevailing party status was more likely the description of a past fact than the establishment of a future minimum. In short, we hold that
Blaylock
does not mandate an inflexible rule that judicial approval of a settlement is always required to make a litigant a prevailing party for state fee-shifting purposes.
Having decided that neither
Buckhannon
nor
Blaylock
forecloses appellant’s theory that she is a prevailing party, we must nevertheless determine whether in fact she holds that status with respect to her AWEA and CPA claims. Before examining what was achieved, in terms of whether the appellee succeeded, we consider how the settlement was accomplished, in terms of whether the procedure employed was inconsistent with the AWEA and the CPA.
It is a common, longstanding practice for settling parties to read into the court record the terms of an agreement before a lawsuit is voluntarily dismissed.
See, e.g., Parkinson v. Parkinson,
42 Md.App. 650, 651-52, 402 A.2d 129 (1979),
Jackson v. Jackson,
14 Md.App. 263, 268-69, 286 A.2d 778 (1972). Maryland cases recognize that such a “settlement order” is neither a judgment nor a court order.
See Consol. Constr. v. Simpson,
372 Md. 434, 464-65, 813 A.2d 260 (2002) (collecting cases). In
Mitchell Props., Inc. v. Real Estate Title Co.,
62 Md.App. 473, 490 A.2d 271 (1985), this Court said:
A settlement agreement is a contract which the parties enter into for the settlement of a previously existing claim by a substituted performance. When this agreement is entered with the court, it is termed a settlement order; however, it is not a court order. Rather, it is a compromise
between the parties, which they submit to the court to stay the proceedings in the case.[
]
Id.
at 482, 490 A.2d 271 (citations omitted).
Nevertheless, such a settlement is binding on the parties and enforceable against them.
Smelkinson Sysco v. Harrell,
162 Md.App. 437, 453, 875 A.2d 188 (2005)
(“Sysco”).
According to 15A Am.Jur.2d
Compromise and Settlement
at § 49, “[a] party to a settlement seeking to redress a claimed breach, if the court case already has been dismissed, may bring an independent action for breach of contract; if the case has not been dismissed, the party may move for enforcement.” There are no jurisdictional concerns about subsequent enforcement in an independent state court action, such as those raised in
Buckhannon
with respect to federal courts. 532 U.S. at 604, n. 7, 121 S.Ct. 1835.
See also Kokkonen v. Guardian Life Ins. Co. of Am.,
511 U.S. 375, 382, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994)(Absent district court retention of jurisdiction over the settlement or incorporation of the settlement in the dismissal order, “enforcement of the settlement agreement is for state courts.... ”).
Neither the AWEA nor the CPA evidences an intent to impose any extraordinary procedural requirements on settling plaintiffs in order to be deemed as prevailing. Noteworthy is the contrasting language of the federal MMWA, which authorizes a fee award “as part of the judgment.” 15 U.S.C.A. § 2310(d)(2). In addition, when these state fee-shifting statutes were enacted — 1986 in the case of CPA and 1984 in the case of the AWEA — even under federal fee-shifting statutes, court-approved settlements were not required.
See Buckhannon, supra,
532 U.S. at 622, 121 S.Ct. 1835 (dissenting opinion of Justices Ginsburg, Stevens, Souter, and Breyer). The most likely intent of the General Assembly in adopting the fee shifting provisions in AWEA and the CPA would have been to
incorporate the common, longstanding and uncomplicated Maryland practice for settling cases,
viz.
the reading into the court record of a valid enforceable settlement. This is particularly true in light of the State’s policy, as reflected in the common law, of encouraging and promoting the settlement of litigation.
See Sysco, supra,
162 Md.App. at 453, 875 A.2d 188.
Finally, we note that the conclusion we reach is consistent with the decision of the Arizona Court of Appeals in
Moedt, supra.
There, the court rejected the contention that direct judicial involvement was necessary for a plaintiff to be a prevailing party under the fee-shifting provisions of the Arizona lemon law.
Moedt,
60 P.3d. at 243. The Arizona court noted that its interpretation comported with the primary justification for fee-shifting provisions, “the promotion of settling, disagreements without extensive litigation,” as well as the goal of “strengthening] a purchaser’s ability to enforce the consumer-protection laws.”
Id.
For these reasons, we hold that even though the settlement did not receive express judicial approval, the procedure used was sufficiently indicative of prevailing party status and was not inconsistent with AWEA or the CPA.
Turning from “how” to “what,” we now consider whether appellee has in fact shown the requisite degree of success to be deemed a prevailing party. In
Blaylock, supra,
152 Md. App. at 354-55, 831 A.2d 1120, this Court distilled these prevailing party formulas from cases in other jurisdictions:
(1) A party prevails when its ends are accomplished as a result of the litigation;
(2) If a party reaches a sought-after destination, then the party prevails regardless of the route taken; and
(3) The standard is whether the party has prevailed in a practical sense.
Under these principles, appellee has prevailed.
The essential claim in this suit was that the 2005 Sonata appellee purchased was not in conformance with the manufacturer’s warranties and that, therefore, appellee was entitled to damages to compensate her for the reduced value of the vehicle. In the settlement agreement, Hyundai agreed to swap the defective car with a brand-new 2007 model, worth significantly more than the 2005 model, then one year old and originally purchased new by appellee. Appellee actually secured more than she sought, a brand new car. Although she may not have taken the direct route to this substantial relief, without a doubt, she prevailed “in a practical sense.”
Blaylock, supra,
152 Md.App. at 355, 831 A.2d 1120.
2. Reasonableness of the Fee Award
Appellant contends 1) that appellee failed to present legally sufficient evidence of the reasonableness of the attorney’s fees claimed, and 2) that the court erred by failing to properly apply the lodestar analysis in determining the amount of the fee award. These questions are two sides of the same coin, in that they relate to reasonableness of the fee and its computation.
Appellee provided a four-page invoice, which included the dates various services were rendered, the initials of the person performing the task, a brief description of the service provided, the hours spent, the rate charged, and the amount charged. On its face, the invoice did not clearly specify which services were being performed by lawyers and non-lawyers. Appellee also submitted to the court the current and proposed federal court guidelines for determining attorney’s fees, which lists the recommended hourly rates based upon the number of years the attorney has been admitted to the bar, in order to show that the rates charged by his law firm were in keeping with those guidelines. Additionally, at the hearing regarding appellee’s motion for attorney’s fees, her counsel said that appellee had filed her complaint alleging one federal and two state claims. He also asserted that, in preparation for trial, extensive discovery was undertaken, interrogatories and document production requests were filed, the appellee’s and appellant’s experts were deposed, pre-trial statements were prepared, and a settlement conference was held. Additionally, appellant had filed a motion for summary judgment and a hearing was held. After a year of litigation, during which no settlement seemed likely, appellee’s counsel prepared for trial. It was not until the day of trial, after some preliminary arguments were heard, that a settlement was finally reached.
Appellee’s counsel also stated that because he had more than fifteen years experience, his services were billed at the rate of $275 per hour, which was in keeping with the proposed federal guidelines on attorney’s fees submitted into evidence as plaintiffs exhibit C. He stated that his company charged $90 per hour for paralegal services. He pointed out that he had litigated the case for a year and had attempted to settle the case six months prior to trial. He asserted that the amount sought was reasonable based upon the amount of time
invested. Appellee’s counsel offered to submit the fee agreement between his firm and appellee, but it was not admitted into evidence. After hearing arguments from both parties and reviewing the appellee’s billing invoice, the circuit court judge stated that the fees “appear to be reasonable” and awarded appellee $12,311.40 in attorney’s fees.
Although nearly indecipherable without counsel’s explanation, appellee’s invoice provided at least some evidence of a reasonable fee. However, there were some major flaws in the submission. Both the AWEA and the CPA authorize the award of reasonable “attorney’s” fees. According to
Friolo I,
373 Md. at 530, 819 A.2d 354, a state fee shifting statute allowing “counsel” fees “must exclude any fees of non-lawyers,” including charges for paralegals.
Here, appellee sought and received payment for paralegals at the rate of $90 per hour. In addition, appellee tied the attorney’s rate to federal court guidelines never adopted by a Maryland court. In
Friolo I,
the Court of Appeals noted that state courts are “not bound to any ‘matrix’ adopted by out-of-state courts or agencies, but must be guided by the nature of the case and the relevant issue it presents and by the rate or other fee arrangements common in the community for similar kinds of fees.” 373 Md. at 530, 819 A.2d 354.
In determining an award under Maryland fee-shifting statutes, courts employ the lodestar methodology.
This begins by multiplying the reasonable number of hours expended by an attorney by a reasonable hourly rate.
Id.
at 504-05, 819 A.2d 354. In
Friolo I,
however, the Court of Appeals cautioned that the lodestar methodology was broader than simply a multiplication of reasonable hours spent by a reasonable hourly rate, but required a careful consideration by the trial court of appropriate adjustments that should be made on
a case-by-case basis.
Friolo I,
373 Md. at 504-05, 819 A.2d 354. “Hours that [a]re excessive, redundant, or otherwise unnecessary should be excluded, as hours not properly billed to one’s client are also not properly billed to the adversary.”
Id.
at 524, 819 A.2d 354. If charges for non-lawyers, such as paralegals, are claimed under a statute that does not authorize such fees, those amounts should be excluded.
See
p. 1265, 960 A.2d at p. 275,
supra; Friolo I,
373 Md. at 530, 819 A.2d 354.
Maryland courts consider a variety of factors including, but not limited to, those delineated in Md. Rules of Professional Conduct, Rule 1.5. Those factors are:
(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) whether the fee is fixed or contingent.
We find that the trial court did not make sufficient findings of fact with regard to these factors.
In order to determine whether any of the charges billed by appellee’s counsel were reasonable, in addition to reviewing the information provided by appellee, the court would also need to apply the factors from Md. Rules of Professional Conduct Rule 1.5 and assess the level of skill of each staff person who performed services; whether time limitations were placed upon the firm by the client; the nature and length
of the professional relationship between the appellee and her counsel; whether the case was considered undesirable and/or required the attorney to work on this case to the exclusion of other cases; the amount of attorney’s fee awarded in similar cases, what the fee arrangement was, and the novelty and difficulty of the case. Only after analyzing these additional issues can the trial court properly begin its reasonableness analysis. The analysis does not end there, however.
Once the trial court makes a determination as to the reasonableness of the fees, it must then weigh the fees requested by the result achieved and decide whether an upward or downward adjustment in the award is warranted.
Friolo I,
373 Md. at 504, 819 A.2d 354. If the court determines that the appellee has obtained excellent results, his attorney should recover the full fee, which would normally encompass all hours reasonably expended on the case.
Id.
at 524-25, 819 A.2d 354. If the court finds that the appellee obtained exceptional success, even an enhanced award may be justified.
Id.
at 525, 819 A.2d 354. On the other hand, if the court determines that the appellee achieved only partial success, a downward adjustment may be necessary.
Garcia v. Foulger Pratt Dev., Inc.,
155 Md.App. 634, 673-74, 845 A.2d 16 (2003)(noting, however, that if the lawsuit consisted of related claims, a plaintiff who has achieved substantial results should not have his attorney’s fees reduced simply because the court did not adopt each contention raised).
According to
Friolo v. Frankel,
403 Md. 443, 450, 942 A.2d 1242 (2008), the trial court is required to explain how the lodestar factors affected its decision to award attorney’s fees. Because the record in this case is incomplete with regard to the analysis undertaken by the court, we cannot determine whether the court abused its discretion regarding the amount of attorney’s fees awarded. We, therefore, remand the case for further proceedings, at which the trial court should follow the lodestar methodology as outlined above, and explain how those factors justify the award of attorney’s fees.
JUDGMENT OF THE CIRCUIT COURT FOR CECIL COUNTY WITH RESPECT TO ATTORNEY’S FEES VACATED. CASE REMANDED TO THAT COURT FOR FURTHER PROCEEDINGS IN CONFORMANCE WITH THIS OPINION. JUDGMENT AFFIRMED IN ALL OTHER RESPECTS. COSTS DIVIDED EQUALLY BETWEEN THE PARTIES.