Rule 2-705.Attorneys’ fees to a prevailing party pursuant to contract

Circuit Court · Last amended October 1, 2025 · Last verified July 13, 2026

In one sentenceRule 2-705 sets the procedure for the classic prevailing-party fee clause — a contract term letting the litigation winner collect attorneys’ fees from the loser — with the court alone deciding the amount using Rule 2-703’s factors and Rule 2-704’s small-claim shortcut.

Full Text of Rule 2-705

Text sizeJump to: (a) (b) (c) (d) (e) (f) (g)

(a) Scope of Rule. — This Rule applies to a claim for an award of attorneys’ fees attributable to litigation in a circuit court pursuant to a contractual provision permitting an award of attorneys’ fees to the prevailing party in litigation arising out of the contract. It does not apply to a claim for attorneys’ fees allowed by contract as an element of damages for breach of the contract or to a claim for attorneys’ fees authorized by statute or other law.

(b) Pleading. — A party who seeks attorneys’ fees from another party pursuant to this Rule shall include a claim for such fees in the party’s initial pleading or, if the grounds for such a claim arise after the initial pleading is filed, in an amended pleading filed promptly after the grounds for the claim arise.

(c) Scheduling conference and order. — If a claim for attorneys’ fees is made pursuant to this Rule, unless the court orders otherwise, the court shall conduct a scheduling conference in conformance with Rule 2-703 (c).

(d) Enhanced procedures and requirements for certain cases. — Upon a determination by the court that the case is one that likely will result in a substantial claim for attorneys’ fees covering a significant period of time, the court may enter orders in conformance with Rule 2-703 (d).

(e) Determination of award by court. — Upon a jury verdict or, in an action tried by the court, a finding by the court in favor of a party entitled to attorneys’ fees as a “prevailing party,” the court shall determine the amount of an award in accordance with section (f) of this Rule.

(f) Factors to be considered. —

(1) If the party seeking attorneys’ fees prevailed with respect to a claim for which fee-shifting is permissible, the court shall consider the factors set forth in Rule 2-703 (f)(3) and the principal amount in dispute in the litigation, and may consider the agreement between party seeking the award and that party’s attorneys and any other factor reasonably related to the fairness of an award.

(2) If the claim for an award of attorneys’ fees does not exceed the lesser of 15% of the principal amount found to be due or $4,500, the court need not require evidence on all of the factors set forth in Rule 2-703 (f)(3) if the party claiming the award produces evidence otherwise sufficient to demonstrate that the amount claimed is reasonable and does not exceed the amount that the claiming party has agreed to pay that party’s attorney. The evidence shall include at a minimum:

(A) a detailed description of the work performed, broken down by hours or factions thereof expended on each task;

(B) the amount or rate charged or agreed to in writing by the requesting party and the attorney; and

(g) Part of judgment. — An award of attorneys’ fees shall be included in the judgment on the underlying cause of action but shall be separately stated. The court shall state on the record or in a memorandum filed in the record the basis for its findings and conclusions regarding the denial or issuance of an award.

End

Amendment History

Added effective January 1, 2014; amended June 26, 2025, effective October 1, 2025.

Committee Note & Source

Cross references. See Rules 2-703 and 2-704.

Committee note. Subsection (f)(1) of this Rule follows the approach set forth in Monmouth Meadows v. Hamilton416 Md. 325 (2010), for contractual fee-shifting cases generally. Subsection (f)(2) of this Rule is intended to permit the court to excuse the need to consider all of the Rule 2-703 (f)(3) factors where the claim for attorneys’ fees does not exceed the lesser of 15% of the amount due or $4,500. Fees in those limited amounts are common in consumer transactions and have been found reasonable by the General Assembly in some of those settings. See Code, Commercial Law Article, §§ 12-307.1 (Consumer Loans) and 12-623 (Retail Installment Sales).

Source. This Rule is new.

Plain-English Summary

This rule applies when a contract lets the prevailing party in litigation over that contract collect attorneys’ fees from the other side. It doesn’t reach fees that serve as an element of breach-of-contract damages (that’s Rule 2-704) or fees authorized by statute or other law (that’s Rule 2-703). A party must plead the fee claim in its initial pleading, or promptly by amendment once the grounds for it arise, and the scheduling conference and any enhanced procedures for a substantial claim follow the same pattern set out in Rule 2-703(c) and (d).

Unlike Rule 2-704, where a jury can decide a fee award in a jury-tried case, the amount here is always for the court. Once a verdict or finding establishes a party as the “prevailing party” entitled to fees, the court sets the award by weighing the same twelve factors used for statutory fee claims, the principal amount in dispute, and — at the court’s discretion — the fee agreement between the prevailing party and its own attorney along with any other factor bearing on the fairness of the award. The same small-claim shortcut from Rule 2-704 applies here too: when the fee sought doesn’t exceed the lesser of 15% of the principal amount due or $4,500, the party can skip proof of every factor and instead rely on a task-by-task time breakdown, the agreed rate, and the customary fee for similar work. The award becomes part of the judgment but must be stated separately, and the court must explain its findings and conclusions on the record or in a memorandum.

Frequently Asked Questions

Who decides a prevailing-party fee award under this rule — judge or jury?

The court decides. Once a verdict or finding establishes a party as the prevailing party entitled to fees under the contract, the court alone sets the amount.

What extra factor does the court weigh here beyond Rule 2-703’s list?

The principal amount in dispute in the litigation. The court may also consider the fee agreement between the prevailing party and its attorney and any other factor reasonably related to the fairness of the award.

Does the small-claim shortcut from Rule 2-704 apply here too?

Yes. When the fee claim doesn’t exceed the lesser of 15% of the principal amount due or $4,500, the party can rely on a streamlined showing — a task-by-task time breakdown, the agreed rate, and the customary fee — rather than proving every factor.

Source & verification. Rule text, Committee Note, Source note, and amendment history are reproduced verbatim from the Maryland Rules, adopted by the Supreme Court of Maryland. Last verified July 13, 2026. · Official source

Also known as: prevailing party attorney fees Maryland contract clauseloser pays attorney fees Maryland contractfee shifting contract clause Maryland circuit courtMd Rule 2-705