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REPORTED

IN THE COURT OF SPECIAL APPEALS OF MARYLAND No. 1483 SEPTEMBER TERM, 2000 _________________________________ __

ALLFIRST BANK

v. DEPARTMENT OF HEALTH AND MENTAL HYGIENE, ET AL.

_________________________________ __

Hollander, Sonner, Bloom, Theodore G. (Retired, Specially Assigned) JJ. _________________________________ __

Opinion by Hollander, J. _________________________________ __

Filed: September 7, 2001

The dispute in this appeal concerns the amount of attorneys' fees awarded by the Circuit Court for Prince George's County to Allfirst Bank with ("Allfirst" the or the by the "Bank"), 1 Caroline appellant, Center, in

connection

default

Inc.,

appellee, of a secured loan made on May 6, 1997, in the amount of $350,000. At the relevant time, the Caroline Center, Inc.

(the "Center," the "Borrower," or the "Caroline Center"), a private adult care facility, was in receivership, pursuant to proceedings initiated by the Department of Health and Mental Hygiene ("the Department"), appellee. The Bank incurred attorneys' fees of almost $55,000 during a 15-month period when, as a secured creditor, it attempted to recover the monies owed by the Center. Although the terms of

the loan obligated the Borrower to pay the Bank's attorneys' fees, the court only awarded Allfirst legal fees of $25,702.85, pursuant to an Order of July 26, 2000. Allfirst presents four This appeal followed. which we have

questions,

consolidated, rephrased, and re-ordered:
1

In this opinion, our references to the Bank shall include the Bank's predecessors, FMB Bank and the First National Bank of Maryland, unless otherwise noted.

I.

Did the circuit court err or abuse its discretion in awarding partial attorneys' fees to appellant, based on its finding that the attorneys' fees incurred by Allfirst after the initial hearing were unnecessary? Did the circuit court deny appellant due process by holding a prompt hearing on the issue of attorney's fees, without prior notice, and without affording the Bank an opportunity to respond in writing or to present evidence in support of its claim for attorney's fees?

II.

The Department has moved to dismiss the appeal, claiming that appellant has not appealed from a final judgment. For the

reasons that follow, we shall deny the motion to dismiss, vacate the award of attorneys' fees, and remand for further

proceedings.

FACTUAL BACKGROUND The Caroline Center, a Maryland corporation, is a private adult care facility that was licensed in 1984 to house and care for developmentally disabled adults. Repl. Vol.), It

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