Hyundai Motor America v. Alley

960 A.2d 1257, 183 Md. App. 261, 2008 Md. App. LEXIS 149
CourtCourt of Special Appeals of Maryland
DecidedDecember 2, 2008
Docket1495 September Term, 2007
StatusPublished
Cited by9 cases

This text of 960 A.2d 1257 (Hyundai Motor America v. Alley) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hyundai Motor America v. Alley, 960 A.2d 1257, 183 Md. App. 261, 2008 Md. App. LEXIS 149 (Md. Ct. App. 2008).

Opinion

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 *264 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 *265 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. 1 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. 2 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.

*266 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. 3 On September 26, 2007, appellant *267 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 *268 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

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

Related

PNC Bank, N.A. v. Davis
D. Maryland, 2022
Estate of Castruccio v. Castruccio
233 A.3d 175 (Court of Special Appeals of Maryland, 2020)
Pedroza v. Lomas Auto Mall, Inc.
304 F.R.D. 307 (D. New Mexico, 2014)
Uptown People's Law Center v. The Department of Corrections
2014 IL App (1st) 130161 (Appellate Court of Illinois, 2014)
Montgomery v. 232511 Investments, Ltd.
2012 VT 31 (Supreme Court of Vermont, 2012)
Frazier v. Castle Ford, Ltd.
27 A.3d 583 (Court of Special Appeals of Maryland, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
960 A.2d 1257, 183 Md. App. 261, 2008 Md. App. LEXIS 149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hyundai-motor-america-v-alley-mdctspecapp-2008.