Maxima Corp. v. 6933 Arlington Development Ltd. Partnership

641 A.2d 977, 100 Md. App. 441, 1994 Md. App. LEXIS 85
CourtCourt of Special Appeals of Maryland
DecidedJune 3, 1994
Docket1228, September Term, 1993
StatusPublished
Cited by50 cases

This text of 641 A.2d 977 (Maxima Corp. v. 6933 Arlington Development Ltd. Partnership) 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
Maxima Corp. v. 6933 Arlington Development Ltd. Partnership, 641 A.2d 977, 100 Md. App. 441, 1994 Md. App. LEXIS 85 (Md. Ct. App. 1994).

Opinion

DAVIS, Judge.

This is an appeal from an order of the Circuit Court for Montgomery County acting pursuant to a remand from this Court. Maxima Corp. v. Cystic Fibrosis Foundation, 81 Md.App. 602, 568 A.2d 1170, cert. denied sub nom., 319 Md. 582, 573 A.2d 1337 (1990). The genesis of the appeal is a dispute over the provisions and implementation of a commercial lease. Parties to the original suit were the lessor, 6933 Arlington Development Limited Partnership (Arlington), The Maxima Corporation (Maxima), an assignee of the original lease, and Cystic Fibrosis Foundation (Cystic), a subtenant of Maxima. Arlington had leased Suite 200 on the second floor of the subject property and basement space (T100) to Technassociates, Inc. (TI) under the “Master Lease,” which provided that Arlington would agree to waive the first six months of rent; to pay $260,000 to TI as a “signing Payment” upon execution of the lease; to pay $260,000 as an “Occupancy Payment” upon TI’s occupying the premises; and to pay a final $200,000 as an “Anniversary Payment” on the first anniversary of the commencement of the leased term.

After Maxima acquired TI’s interest in the lease and sublet of Suite 200 to Cystic Fibrosis, a dispute arose because T100 had remained unoccupied. The dispute culminated in a rejection by Arlington of a proposed offer by Maxima to sublease T100 to Cystic. Cystic filed a complaint naming Arlington and Maxima as defendants, seeking declaratory judgment that it was entitled to remain in Suite 200 and that it was entitled to a monetary award for tenant incentive payments. Maxima cross-claimed against Arlington, seeking damages for breach of the Master Lease, indemnity, and declaratory relief. Arlington counterclaimed against Cystic for hold-over rent as to *447 Suite 200 and filed a cross-claim against Maxima for indemnity. The trial court found that Maxima had breached its lease with Arlington and ordered it to pay damages to both Arlington and Cystic.

On appeal, this Court made the following rulings, respectively: (1) affirmed the trial court’s ruling that Maxima defaulted on the Master Lease; (2) reversed the trial court’s ruling that Arlington’s refusal to agree to Maxima’s proposed sublease was reasonable; (3) reversed the trial court’s ruling that Maxima was liable for damages to Arlington from the point at which Cystic was presented as a subtenant to Arlington; (4) affirmed that Cystic was a subtenant of Maxima and not an assignee of the Master Lease; (5) affirmed that the Master Lease was one lease and not bifurcated; (6) ruled that “Arlington may not recover from Maxima for any damage related to the T100 space beyond that incurred due to Maxi-ma’s failure to occupy the space from September, 1986 to September, 1987, the date it proposed to Arlington a subtenancy to Cystic”; (7) vacated those portions of the trial judge’s damage award as between Maxima and Arlington relating to lost rent, operating costs, taxes, and attorneys’ fees; (8) noted that “under the master lease, Arlington’s obligation to make the tenant incentive payments remained even in the face of a default,” because Maxima’s attempted cure was rejected; (9) affirmed the trial court’s ruling to deny Arlington a forfeiture against Cystic; (10) affirmed that Arlington was not entitled to holdover rent or a refund of its incentive payment because Cystic was entitled to remain in possession; (11) reversed the trial court’s denial of attorneys’ fees to Cystic from Maxima; and (12) held that Cystic was entitled to its contracted share of the incentive payments, which this Court has held that Arlington owes Maxima.

On remand, the trial court issued the following pertinent orders: 1

*448 [1] that judgment be, and is hereby entered in favor of Arlington and against Maxima in the amount of $56,-154.60, representing rent for the T100 space from March 3, 1987 to September 15, 1987, plus interest and late fees until February 2, 1989, interest on this judgment to accrue at the rate of $15.38 per day from March 7, 1989;
[2] that judgment be and is hereby entered in favor of Maxima and against Arlington in the amount of $255,-007.06, representing:
[ (a) ] the unpaid balance of the Occupancy Payment;
[ (b) ] the Anniversary Payment; and
[ (c) ] the costs on appeal, interest on the judgment to accrue at the rate of $69.55 per day from the entry of this judgment; ...
[3] that judgment be and is hereby entered in favor of Maxima and against Arlington in the amount of $70,-068.78 [2] as indemnification for the payment of Cystic’s net legal fees; ...
[4] that Arlington submit documentation to this Court to support an award of attorney[s’] fees for the time counsel expended related to Maxima’s default under the lease with respect to its failure to pay rent from March 3, 1987 through September 3, 1987; ... and
[5] in accordance with Section 41 of the Lease, that the judgment in favor of Maxima and against Arlington shall be satisfied solely from the equity in the Leased Premises....

Pursuant to this order, Arlington submitted a two page schedule of fees to the court. The schedule stated only the dates, hours spent, and billing rate. Several dates indicated well over twenty-four hours charged without specifying the names of the attorneys performing the services. The trial *449 court, by letter dated February 26, 1993, requested a more detailed schedule. By letter dated March 10, 1993, Arlington requested an in camera inspection of the bills after unrelated charges were redacted. Maxima indicated its opposition to the in camera inspection in a letter dated March 11,1993. On June 9, 1993, the trial judge ordered an award of attorneys’ fees in favor of Arlington in the amount of $127,945.

Maxima, appellant/cross-appellee, presents the following issues:

I. Whether the [trial c]ourt erred in granting Appellee Arlington $127,945 in legal fees.
II. Whether the [trial cjourt erred in denying appellant Maxima’s claim for relief, including pre-judgment interest, post-judgment interest and legal fees.
III. [Whether the trial court erred when it ruled that damages awarded to Maxima against Arlington should be satisfied solely from the equity in the leased premises.] [3]

Arlington, appellee/cross-appellant, presents the following issue:

IV. Whether the trial court erred in granting Maxima $105,406.90 against Arlington as indemnification for the payment of Cystic’s attorneys’ fees assessed against Maxima.

FACTS

The facts giving rise to the original appeal were detailed in our opinion, Maxima, 81 Md.App.

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Bluebook (online)
641 A.2d 977, 100 Md. App. 441, 1994 Md. App. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maxima-corp-v-6933-arlington-development-ltd-partnership-mdctspecapp-1994.