Opinion ID: 2175682
Heading Depth: 1
Heading Rank: 3

Heading: the harrisons' appeal

Text: The Harrisons assert that the trial judge erred in failing to award them costs and attorney's fees pursuant to Rule 1-341. They argue that the judge was in error if he found that Inlet's suit against them did not lack substantial justification. Based on the facts previously set forth and the oral opinion of the trial judge, we hold that the judge did conclude that Inlet's suit against the Harrisons had substantial justification and that this finding was not clearly erroneous. The Harrisons also contend that, because the judge clearly found bad faith in Inlet's suit against Burnett, he must have by implication also found bad faith in Inlet's suit against them. We do not agree. In Zdravkovich v. Bell Atlantic-Tricon Leasing Corp., 323 Md. 200, 592 A.2d 498 (1991), this Court stated: The imposition of sanctions pursuant to Rule 1-341 requires an explicit finding that a claim or defense was `in bad faith or without substantial justification.' The record must reflect that the trial judge made the requisite findings, as well as the basis for those findings. Id. at 210, 592 A.2d at 503. Even though the trial judge found bad faith in Inlet's suit against Burnett, the judge did not explicitly find that Inlet's suit against the Harrisons was filed or pursued in bad faith. The failure to find bad faith in the suit against the Harrisons was not clearly erroneous. Thus, since there was no express finding of either bad faith or lack of substantial justification, the Harrisons were not entitled to an award of costs and counsel fees under Rule 1-341. We note that even if the Harrisons were correct in their suggestion that the judge found bad faith or lack of substantial justification, a decision to deny costs or attorney's fees to the Harrisons would not be an abuse of discretion.