Ocean City, MD., Chamber of Commerce, Inc. v. Barufaldi

McDonald j.

The vast majority of states, including Maryland, follow what is known as the “American Rule” on the allocation of the costs of litigation — that is, each party bears its own costs, including attorneys’ fees, regardless of the outcome.1 This is in contrast to the practice in Great Britain — and most other legal systems in the Western world — which follows what is known as the “English Rule” under which the successful party in a law suit may recover the costs of litigation from the losing party.2

The American Rule is subject to numerous exceptions, most notably when the Legislature…