McDONALD, J.
It is said, in many contexts, that timing is everything. This case involves an important question of timing for an appellate lawyer — the time to appeal.
The time to appeal must accommodate competing values. On the one hand, appellate review advances the interest in ensuring that judicial decisions are consistent and correct. On the other hand, it is also important that a judicial decision be certain — in other words, that there is an end to the process of review. Accordingly, the path to appellate review should be clear and well-marked, but the time for filing an appeal should be finite and well-defined.
The statutes and rules governing appellate review reflect those principles. The Legislature has limited appellate jurisdiction largely to review of "final judgments" of the trial courts. This Court has implemented that jurisdiction, setting time limits by rule and, to some extent, by case law. Under Maryland Rule 8-202(a), a "notice of appeal shall be filed within 30 days after entry of the judgment or order from which the appeal is taken." The date of "entry of judgment" is determined under Maryland Rule 2-601. Under that rule, a final judgment is not effective unless it is set forth on a "separate document" consistent with Rule 2-601(a) and is entered on the docket consistent with Rule 2-601(b). The date on which the separate document is docketed triggers the 30-day deadline for filing a notice of appeal under Rule 8-202(a). This case concerns what qualifies as a "separate document" that, upon its docketing, starts the 30-day clock for filing a notice of appeal.
This case involves several plaintiffs and two defendants. All of the plaintiffs asserted claims against the first defendant; one plaintiff asserted a claim against the second defendant. The Circuit Court awarded summary judgment in favor of the first defendant against all of the plaintiffs — a decision that was indisputably not a final judgment as it did not resolve the claim against the co-defendant. More than a year later, the claim as to the remaining co-defendant was voluntarily dismissed by means of a stipulation of dismissal. When the plaintiffs then sought to appeal the earlier adverse summary judgment ruling, the question arose as to whether the stipulation of dismissal satisfied the separate document requirement of Rule 2-601. If so, the notice of appeal was untimely as it was filed more than 30 days after the docketing of the stipulation of dismissal.
We hold that the stipulation of dismissal did not satisfy the requirements of Rule 2-601 for a separate document. The stipulation of dismissal was not in the form of a judgment, was not signed by either the judge or the clerk as required by the rule, and was not docketed consistent with the rule. Accordingly, its docketing did not trigger the time for filing an appeal of the order awarding summary judgment.
The separate document requirement was added to Maryland Rule 2-601 in 1997 when it was imported into that rule from federal appellate practice.
During the middle of the last century, there was confusion in the federal courts as to what constituted an effective final judgment
In order to eliminate these uncertainties and inequities, the federal rule governing entry of judgment was amended in 1963 to require that "there be a judgment set out on a separate document — distinct from any opinion or memorandum — which provides the basis for the entry of judgment." Advisory Committee Note on 1963 Amendments to Rule 58 of the Federal Rules of Civil Procedure. The separate document requirement was explicitly designed to avoid confusion when more than one docket entry or order could be interpreted as a final judgment. Id. The new requirement was intended to "make clear that a party need not file a notice of appeal until a separate judgment has been filed and entered." Bankers Trust, 435 U.S. at 384, 98 S.Ct. 1117; see also 11 Wright, Miller & Kane, et al., Federal Practice & Procedure Civ. § 2781 (3d ed.) (two distinct acts must coincide before there is an effective judgment: the rendition of the judgment must be set forth on a separate document and the judgment must be entered properly on the docket).
Two principles have guided the application of the separate document requirement in the federal courts. First, in order to provide the desired clarity, the "separate-document rule must be `mechanically applied' in determining whether an appeal is timely." Bankers Trust, 435 U.S. at 386, 98 S.Ct. 1117 (quoting United States v. Indrelunas, 411 U.S. 216, 93 S.Ct. 1562, 36 L.Ed.2d 202 (1973)).
Second, because the rule "is not designed as a trap for the inexperienced," it is to be interpreted to preserve the right to an appeal. Bankers Trust, 435 U.S. at 386-87, 98 S.Ct. 1117. Thus, the mechanical application of the requirement is relaxed only when it will prevent the loss of a right of appeal. Id. In that regard, the Supreme Court in Bankers Trust held that the separate document requirement could be waived to allow an appeal when the lack of a separate document did not mislead or prejudice a party. Id.; see also Fiore v. Washington County Community Mental Health Center, 960 F.2d 229, 235 (1st Cir. 1992) (Rule 58's "hypertechnicality" would be relaxed only to save an appeal); Hummer v. Dalton, 657 F.2d 621, 624 (4th Cir.1981) (Rule 58 should be interpreted to prevent loss of the right of appeal) (citations omitted).
As in the federal courts, appellate jurisdiction in Maryland is ordinarily limited to review of final judgments. See Maryland Code, Courts & Judicial Proceedings Article ("CJ"), § 12-301.
The revision of Rule 2-601 in 1997 was designed to alleviate much of this uncertainty. In drafting a revision to achieve clarity as to what is an effective judgment and when that judgment is entered, the Rules Committee patterned the amendment after the existing version of Rule 58 of the Federal Rules of Civil Procedure
As the above indicates, the 1997 amendments included several new requirements for the effective entry of judgment. First, as a result of those amendments, "[e]ach judgment shall be set forth on a separate document." This document must be separate from an oral ruling of the judge, a docket entry, or a memorandum.
Second, the separate document is to be signed by either the judge or the clerk. Who must sign the document depends on the type of judgment. When there is a decision by the court denying all relief, the clerk shall "prepare, sign, and enter the judgment." Rule 2-601(a). More complex types of judgments require a signature by the judge. Id.
Third, a judgment is effective — meaning that it triggers the time for filing an appeal — only if it is set forth in accordance with the requirements of Rule 2-601(a)
In construing the separate document requirement of Rule 2-601, this Court has, unsurprisingly, employed the same principles as the federal courts in construing Rule 58 of the Federal Rules of Civil Procedure. Like the federal courts, we have stated that the "separate-document rule must be mechanically applied in determining whether an appeal is timely." Byrum, 360 Md. at 32, 756 A.2d 560 (quoting Bankers Trust, 435 U.S. at 386, 98 S.Ct. 1117). Compliance with Rule 2-601 is "not just a matter of complying with a hyper-technical rule." Allstate Ins. Co. v. State Farm Mut. Auto. Ins. Co., 363 Md. 106, 117 n. 1, 767 A.2d 831 (2001). Instead, as in the federal courts, the mechanical application of the rule is necessary to fulfill its purpose of providing clear and precise judgments and to eliminate uncertainty as to when an appeal must be filed. Id.
In addition, as in the federal courts, this requirement is interpreted in favor of the preservation of appeal rights. In Byrum, this Court concluded that docket entries could not substitute for a separate document and start the time for appeal when such an interpretation would render the appeal untimely. 360 Md. at 32-33, 756 A.2d 560. The Court also rejected the argument that a litigant may waive Rule 2-601's separate document requirement when the waiver will cause the appeal to be untimely. Id. In a subsequent decision, the Court elaborated on this point and held that the parties may waive the separate document requirement under limited circumstances but only when a party is not prejudiced by the waiver. Suburban Hospital, Inc. v. Kirson, 362 Md. 140, 153-57, 763 A.2d 185 (2000). The Court cautioned that waiver of the separate document requirement under Rule 2-601 should not be interpreted to find that a party has filed an appeal late. Id.
This action arises out of a fatal car accident and a dispute over uninsured motorist coverage under two insurance policies that covered occupants of one of the vehicles in the accident. In a complaint filed in the Circuit Court for Baltimore County in February 2008, Petitioners Deborah Hiob, Douglas Hiob, Margaret Nelson, and the personal representatives of Virginia Hiob and Laura Dusome (collectively the "Hiobs") brought an action for declaratory judgment against Respondent Progressive American Insurance Company ("Progressive") and Erie Insurance Exchange ("Erie").
In September 2009, the Circuit Court granted Progressive's motion for summary judgment and denied the Hiobs' motion for summary judgment, thereby resolving all of the claims against Progressive. The court issued a written order specifying the rights of the parties, which was entered on the docket on October 7, 2009. The court docket recorded no further activity in the case for the next 14 months.
On January 10, 2011, the Estate of Virginia Hiob and Erie filed with the Circuit Court a document entitled "Line of Dismissal" which stated that the personal representative of Virginia Hiob voluntarily dismissed with prejudice the action as to Erie. The Line of Dismissal was signed by the attorneys for the Estate of Virginia Hiob and Erie and was entered on the docket as "Voluntary Dismissal (Partial)" on January 10, 2011.
At the same time that the Line of Dismissal was filed, the Hiobs also filed a "Motion to Reduce Order of October 7, 2009 to Final Judgment," citing Rule 2-601 and noting that, with the dismissal of Erie, the interlocutory order as to Progressive could be made final. On February 8, 2011, the Circuit Court granted that motion and signed an order stating that "final judgment is entered." The order was not immediately docketed. On February 15, 2011 — before that order was docketed but 36 days after the Line of Dismissal had been docketed — the Hiobs filed a notice of appeal. Then, on February 25, 2011, the clerk made a docket entry indicating that a final judgment had been issued.
In its consideration of the Hiobs' appeal, the Court of Special Appeals did not reach the merits of the Circuit Court's award of summary judgment because it found that the appeal was untimely. 212 Md.App. 734, 71 A.3d 184 (2013). In its opinion, the court first considered whether the separate dispositions as to two defendants could together constitute a final judgment. It observed that this Court's decision in Houghton v. County Commissioners of Kent County, 305 Md. 407, 504 A.2d 1145 (1986) had approved the concept of "piecemeal judgments" and concluded that, although Houghton predated the 1997 amendment of Rule 2-601, its holding on piecemeal finality remained good law. The intermediate appellate court then considered whether the Line of Dismissal as to Erie, in conjunction with the October 2009 order awarding summary judgment as to the claims against Progressive, together constituted a final judgment for purposes of Rule 2-601. The court held that the Line of Dismissal was a judgment for purposes of Rule 2-601, relying on language from this Court's decision in Tierco Maryland, Inc. v. Williams, 381 Md. 378, 393, 849 A.2d 504 (2004), and that the docketing of the Line of Dismissal on January 10, 2011, was the date final judgment was entered in the action under Rule 2-601. Accordingly, it held that the Hiobs' failure to file their notice of appeal within 30 days of that date doomed their appeal. 212 Md.App. at 748, 71 A.3d 184.
This Court granted certiorari to consider the application of Rule 2-601 in this context.
Whether the Hiobs' notice of appeal concerning their claims against Progressive was timely turns on what satisfies the criteria for entry of judgment by a separate document under Rule 2-601(a). The critical question is whether the Line of Dismissal, in conjunction with the summary judgment order, satisfied the separate document requirement of Rule 2-601 for entry of final judgment and triggered the 30-day clock for filing a notice of appeal.
Progressive's argument in its brief to us can be interpreted in two ways: (1) the judgment in this case was the order of summary judgment as to the claims against Progressive, and the filing of the Line of Dismissal provided both finality and the separate document required for the entry of final judgment, or (2) the summary judgment order was a final order with its own separate document (the declaratory judgment), and the voluntary dismissal of the claim against Erie was a second and distinct judgment with its own separate document (the Line of Dismissal) that, when docketed, combined with the earlier summary judgment order to make a final, appealable judgment — a theory that would be based on the concept of "piecemeal judgments" articulated in Houghton.
In our view, the Line of Dismissal did not satisfy the separate document requirement and thus could not trigger the 30-day period for filing a notice of appeal as to the claims against Progressive because it did not provide a clear indication that judgment had been rendered, it did not comply with the plain language of Rule 2-601(a), and its accompanying docket entry did not satisfy Rule 2-601(b). We need not decide whether Houghton's acceptance of piecemeal judgments survives the 1997 amendment of Rule 2-601, as one of the necessary pieces was missing in any event.
Because the Line of Dismissal did not comply with Rule 2-601, a separate document was not rendered or entered until the clerk docketed the Circuit Court's February 8, 2011 order on February 25, 2011 — the earliest date on which the 30-day clock for filing a notice of appeal would have been triggered.
As its title indicates, Rule 2-601 applies to the "entry of judgment." A threshold question is whether a voluntary dismissal by stipulation between the parties, although not a decision of the court, sets forth a "judgment" for purposes of Rule 2-601.
The Maryland Rules define "judgment" as an "order of court final in nature entered pursuant to these rules." Maryland Rule 1-202(o). Prior to the current iteration of Rule 2-601, it was established that when "[r]ead in conjunction, Rule 1-202([o]) and 2-601 make clear that two acts must occur for an action by a court to be deemed the granting of a judgment[.]" Jones v. Hubbard, 356 Md. 513, 520, 740 A.2d 1004 (1999) (citing Doehring v. Wagner, 311 Md. 272, 533 A.2d 1300 (1987)). First, there must be a rendition of the judgment by the court; second, there must be entry of the judgment by the clerk. Jones, 356 Md. at 520-21, 740 A.2d 1004. "Rendition of judgment is the judicial act by which the court settles and declares the decision of the law on the matters at issue. In other words, rendition is the court's pronouncement ... of its decision upon the matter submitted to it for adjudication." Id. The rendition of judgment by the court must "clearly indicate[ ] that the issue submitted has been adjudicated completely and it has reached a final decision on the matter." Id. at 524, 740 A.2d 1004; see also Bd. of Liquor License Comm'rs for Baltimore City v. Fells Point Café, Inc., 344 Md. 120, 129, 685 A.2d 772 (1996) (the purported judgment "must be intended by the court as an unqualified, final disposition of the matter in controversy") (quoting Rohrbeck v. Rohrbeck, 318 Md. 28, 41, 566 A.2d 767 (1989)).
There is no indication, in either the history of Rule 2-601 or our case law, that the addition of the separate document requirement eliminated the requirement that there must be a rendition of judgment by the court. Instead, the 1997 amendment of Rule 2-601(a) added the additional element that the judgment by the court — whether rendered by oral pronouncement, written memorandum, or otherwise — must also be "set forth on a separate document." In other words, the separate document itself must now set forth the judgment by indicating that the issues have been fully adjudicated and that the court has reached a final decision. An important aspect of this function is to clearly indicate in the separate document which party has prevailed on which issues and what type of relief, if any, has been granted by the court. These features of the separate document ensure that the court issues "clear, precise, and complete judgments"
In sum, Rule 2-601(a) requires more than a piece of paper — or, with the advent of electronic filing in the courts, an electronic document — accompanied by a docket entry. It requires that the piece of paper (or electronic document) "set forth" an unqualified decision of the court as to which party has prevailed and what relief, if any, is awarded. The separate document requirement is not complicated, despite these requirements. This Court has previously indicated that the requirement should be satisfied through the use of a document patterned after the forms devised for federal practice. Suburban Hospital, Inc. v. Kirson, 362 Md. 140, 154, 763 A.2d 185 (2000)
This Court has previously stated that a voluntary dismissal by stipulation is not an order of court. Claibourne v. Willis, 347 Md. 684, 691, 702 A.2d 293 (1997). Similarly, when the parties enter into a settlement agreement, even if it is filed with the court, it is not an order of the court, unless the parties ask the court to enter a consent judgment based on the settlement agreement. See Kent Island, LLC v. DiNapoli, 430 Md. 348, 359-60, 61 A.3d 21 (2013); Consolidated Const. Services, Inc. v. Simpson, 372 Md. 434, 465, 813 A.2d 260 (2002); see also Jones v. Hubbard, 356 Md. 513, 525, 740 A.2d 1004 (1999).
It is apparent from this case law that a voluntary dismissal by stipulation, which is not presented to the court for approval, is not an order of court and therefore is not a judgment. This would seem to resolve the issue in the Hiobs' favor because if a voluntary dismissal by stipulation is not a judgment, the Line of Dismissal in this case is not a document on which a judgment is set forth.
Progressive argues that the Line of Dismissal nevertheless possesses the requisite finality and that this Court's decisions in
The main thrust of Progressive's argument is that the entry of the voluntary dismissal started the time for filing a notice of appeal because, at that point in the action, all of the pending claims had been finally adjudicated.
Rohrbeck v. Rohrbeck, 318 Md. 28, 41, 566 A.2d 767 (1989). The fact that the judge issues an unqualified, final disposition that adjudicates all the claims against all the parties satisfies the first two elements, but it is not sufficient to constitute a final, appealable judgment and start the time for an appeal. The third requirement, that there be a proper record of the judgment in accordance with Rule 2-601 must also be satisfied. As explained above, Rule 2-601(a) now requires that the judgment be set forth on a separate document before it is entered by the clerk. See Circuit City Stores, Inc. v. Rockville Pike Joint Venture Ltd. P'ship, 376 Md. 331, 347 n. 3, 829 A.2d 976 (2003). In other words, the existence of final adjudication on all claims against all parties is necessary but not sufficient to begin the time for filing an appeal.
Progressive argues that this Court's decision in Claibourne v. Willis, 347 Md. 684, 702 A.2d 293 (1997), supports the proposition that a voluntary dismissal with prejudice is a final judgment that triggers the time period for seeking appellate review. In Claibourne, this Court considered whether a party's effort to seek relief from a stipulated order of dismissal more than 30 days after entry of the order was subject to the limitations of Rule 2-535. 347 Md. at 692, 702 A.2d 293. Under that rule, a court may exercise its revisory powers over a "judgment" on motion of a party filed within 30 days of entry of the judgment; otherwise, the court may only exercise its revisory powers over the judgment in cases of fraud, mistake or irregularity.
The case arose out of an automobile tort action. The plaintiff settled her claim with an insurer, agreeing to discharge the insurer from any claims and to assist the insurer in pursuing a subrogation claim against the other driver. The plaintiff then mistakenly dismissed, through a stipulation of dismissal, her claim against the driver, thereby extinguishing the insurer's subrogation rights against the driver. Subsequently, the plaintiff realized that she had dismissed her claim against the wrong defendant and moved for relief from the voluntary dismissal. The Circuit Court denied the motion, apparently on the ground that it did not satisfy the standards for the exercise of the court's revisory powers under Rule 2-535(b).
On appeal, the plaintiff argued that, because the voluntary dismissal was not an order of court and thus not a judgment as defined by Rule 1-202(o),
Progressive asserts that Tierco Maryland, Inc. v. Williams, 381 Md. 378, 849 A.2d 504 (2004), held that a voluntary dismissal by stipulation is a judgment for purposes of Rule 2-601.
The case arose out of a tort action brought by six family members against an amusement park. On the morning of trial, plaintiffs' counsel requested that one of the plaintiffs be dismissed. The trial court orally approved the dismissal, but neither the court nor the clerk prepared a written record of that order or a docket entry recording the dismissal at that time. The remaining plaintiffs went to trial and the jury reached a verdict in favor of those plaintiffs. The trial court entered judgment on the jury verdict and the amusement park filed a motion for judgment notwithstanding the verdict under Rule 2-532. The trial court subsequently entered a written judgment as to the claims against the one plaintiff that it had orally dismissed prior to the trial. The trial court largely denied the amusement park's post-trial motion and entered judgment accepting most of the jury verdict.
The Court of Special Appeals dismissed the appeal as untimely. It held that the amusement park's post-judgment motion under Rule 2-532 had been filed prematurely (because the trial court had not yet entered a final judgment as to the dismissed plaintiff), that the motion had therefore not tolled the 30-day period for filing a notice of appeal, and that, as a result, the notice of appeal was filed late. The intermediate appellate court therefore dismissed the amusement park's appeal as untimely.
After granting certiorari, this Court reversed that decision and found the appeal to be timely. But the Court did not hold that every voluntary dismissal is a judgment for purposes of Rule 2-601 and explicitly rejected an argument that the pre-trial voluntary dismissal in Tierco sufficed as an effective final judgment under Rule 2-601.
Before this Court, the amusement park argued that the oral dismissal by the judge in open court was a final adjudication of that claim that satisfied Rule 2-601 and thus, when the judgment on the jury verdict was later entered, all the claims were resolved, a final judgment existed, the time for filing motions for post-judgment motions was triggered, and, as a result, its motion for judgment notwithstanding the
Although this Court ultimately held that the appeal was timely, it rejected the amusement park's argument and concluded that a separate written order was required for the pre-trial dismissal of one plaintiff to constitute a judgment. Tierco, 381 Md. at 394, 849 A.2d 504. The Court reasoned that, because the dismissal was effectuated by court order and because Rule 2-601 requires that an order be set forth on a separate document to be effective as a final judgment, the order of dismissal had to be set forth on a separate document.
Here, the Line of Dismissal as to Erie does not clearly indicate to the parties
Progressive argues that clarity is not a concern in this case because the Hiobs knew the claims against Progressive were finally resolved once the Line of Dismissal was filed. This argument ignores the need to provide the public, not just the litigants, with a clear indication of when judgment is entered. Moreover, it is not entirely accurate as to the parties' knowledge. The Hiobs and Progressive could not know definitively — although they might be able to predict — whether the court would modify the prior summary judgment order, which the court retained the power to do until final judgment was entered for all claims and parties. See Maryland Rule 2-602(a). Thus, under Progressive's theory, the parties or a member of the public must assume that the prior, non-final order is actually a final order against Progressive, not because the court issued any final determination on this issue, but because an unrelated defendant settled. A determination that a final judgment exists based on assumptions of implied finality is not the type of clear indication that judgment has been entered envisioned by the current version of Rule 2-601.
Moreover, the Line of Dismissal does not perform the functions of a separate document because it is not readily apparent from the document itself that a judgment has been issued. Instead, under Progressive's proposed rule, one must be aware of all the existing claims, including counter-claims, cross-claims, and third-party claims in the action and the resolution of each claim. See Maryland Rule 2-602(a) (an order that does not resolve every claim, counter-claim, cross-claim, or third-party claim by and against all parties is not a final adjudication of any claim). Once the litigant or member of the public searches the docket or case file and is able to determine the disposition of each claim and realizes that no further claims remain pending, the researcher will know the adjudication of the last claim constituted final judgment. Although within a different context, this Court has previously concluded that a rule that requires an extensive examination into each claim of the case creates mystery, not clarity:
Estep v. Georgetown Leather Design, 320 Md. 277, 287, 577 A.2d 78 (1990). Such a determination may not be a significant impediment in a simple case; but Rule 2-601 must be interpreted to produce clear and precise judgments in all cases.
Thus, because the Line of Dismissal does not clearly indicate to the parties and the public that the court has adjudicated the issues presented and rendered a final decision as to the claims against Progressive, the Line of Dismissal does not have the same effect as a judgment under Rule 2-601 and should not be treated as a judgment for purposes of that rule.
As explained above, Rule 2-601, like its federal counterpart, is to be applied "mechanically" and its requirements relaxed only when doing so would preserve an appeal. See Byrum, 360 Md. at 32, 756 A.2d 560 (quoting Bankers Trust, 435 U.S. at 386, 98 S.Ct. 1117). The insistence on formality is necessary to provide clarity as to when the time for filing an appeal begins. See Allstate Ins. Co., 363 Md. at 117 n. 1, 767 A.2d 831. One of the formalities of Rule 2-601(a) is that the separate document be signed by either the clerk or the judge, depending on the type of judgment. See Rule 2-601(a); see also Byrum, 360 Md. at 31, 756 A.2d 560 (noting that Rule 2-601(a) contains an "express requirement for a separate document that is signed.") (emphasis added). Under a mechanical application of Rule 2-601, the Line of Dismissal is deficient because it was not signed by either the clerk or the judge.
Progressive makes two arguments in support of its position that the signature requirement of Rule 2-601 does not apply to stipulated dismissals. First, Progressive argues that Tierco created a new and unique way for Rule 2-601 to be interpreted when applied to voluntary dismissals by stipulation and that, under Tierco, the signature
381 Md. at 394, 849 A.2d 504 (emphasis added; citation omitted). Progressive argues that, based on this language, a signature is not required when the separate document is a stipulated dismissal, so long as the Line of Dismissal puts litigants and the public on notice that the claim was resolved and it was docketed.
Progressive extrapolates from this passage to interpret Rule 2-601 contrary to the plain language of the rule. "When a party contends that a court should disregard the express language of a carefully-drawn rule of procedure, that party bears a heavy burden of showing that departure from the plain language is justified." State ex rel. Lennon v. Strazzella, 331 Md. 270, 282, 627 A.2d 1055 (1993) (quotations and citation omitted). That burden is particularly heavy when the proposed change disregards the over-arching policy concern of the rule. Id.
Progressive does not carry that burden. The statement in Tierco that a judge need not sign an order that denies all relief does not contradict the plain language of Rule 2-601, as the rule explicitly permits the clerk to prepare and sign a judgment "denying all relief." The Court in Tierco did not hold that the signature requirement could be disregarded altogether.
Second, Progressive counters that the plain language of Rule 2-601 does not require the signature of either the clerk or court, and thus, an exception for voluntary dismissals is not a departure from the Rule's plain language. Progressive notes that Rule 2-601(a) requires the signature of the clerk only "upon the verdict of a jury or a decision by the court." Because a stipulated dismissal is not a "decision by the court," Progressive concludes that a signature by the clerk or judge is not required.
But this argument is at odds with Progressive's position that the stipulated dismissal is a "judgment." In sum, Progressive argues that a stipulated dismissal is an order of court and therefore is a judgment subject to Rule 2-601, but at the same time argues that it is not an decision of court, and thus need not comply with the requirements of Rule 2-601 in order to begin the time for appeal. Progressive cannot have it both ways — either the Line of Dismissal is a judgment — i.e., an order of court — and must comply with Rule 2-601's requirements in order to start the time for appeal; or it is not an order of court — i.e., not a judgment — and is not the type of document that must be entered under Rule 2-601 and cannot start the time for appeal.
Even if the Line of Dismissal as to Erie satisfied the separate document requirement of Rule 2-601(a), our analysis would not be complete because the time for filing a notice of appeal does not begin until the separate document is entered on the docket consistent with 2-601(b). See Maryland Rule 2-601(a) ("A judgment is
Here, the docket entry for the Line of Dismissal reads "Voluntary Dismissal (Partial) as to Erie Insurance Exchange." The docket entry is ambiguous as to whether a judgment has been entered because it does not specify whether the dismissal is with or without prejudice, leaving open the possibility that the claim against Erie was not resolved definitively. Although the Hiobs and Erie may be aware that the "partial" is in reference to the dismissal of only one defendant out of two, as opposed to only a portion of the claims against Erie, the public cannot discern this information from the docket entry. Without any indication of finality, the public cannot discern from the docket entry that a final judgment has been entered.
The ambiguity as to finality is especially apparent in this case because neither the docket entry, nor the Line of Dismissal as to Erie, indicates that the prior summary judgment order in favor of Progressive is now a final order. Instead, under the peculiar interpretation urged by Progressive, the notice of dismissal, signed by only two of the multiple plaintiffs and defendants, would constitute both the final judgment in the entire action and the separate document on which that final judgment is set forth. Such a rule creates a trap for the unwary and the inexperienced and does not promote the ability of the public to readily determine the disposition of every claim brought in the circuit courts.
In sum, the Line of Dismissal is not a separate document sufficient to satisfy Rule 2-601 because it is not a form of judgment, it does not comply with the plain language of the rule, and its accompanying docket entry does not give a clear indication that final judgment for all the pending claims in the case has been entered.
We end with a word on what is sometimes called "piecemeal finality."
Because Houghton interpreted a version of Rule 2-601 prior to the adoption of the separate document requirement, its analysis as to whether each judgment has been entered properly under Rule 2-601 is outdated. For instance, at the time Houghton was decided, the requirement that the clerk prepare, sign, and enter the separate document on which judgment is set forth was not yet part of Rule 2-601. Additionally, at the time of the Houghton decision, the time for filing an appeal began at the time that a final, appealable judgment existed and a notation was entered on the docket. As a result, the analysis in Houghton focused on whether the orders issued in that case finally resolved all of the issues and nothing remained pending before the court. See Houghton, 305 Md. at 412, 504 A.2d 1145 (concluding that an order of dismissal on two claims and a notice of dismissal on a third claim had the effect of putting the plaintiff out of court, nothing remained to be done, and therefore, a final judgment existed). The 1997 amendments to Rule 2-601 changed the analysis from whether finality existed to whether an order, which finally resolved all the issues, had been set forth on a separate document.
For the reasons set forth above, in order for there to be an entry of an effective final judgment that triggers the time for filing an appeal, there must be an affirmative answer to the following questions:
In this case, the Line of Dismissal did not satisfy these requirements and did not trigger the 30-day clock for filing a notice of appeal as to the summary judgment ruling. The Hiobs filed their notice of appeal after the Circuit Court issued an order entering final judgment that satisfied those requirements, but before that order was docketed. Accordingly, the Hiobs' notice of appeal was timely under Rule 8-602(d).
Rule 58 of the Federal Rules of Civil Procedure (1993) (emphasis added). Subsequent amendments of that rule in 2002 and 2007 elaborated and refined that requirement and made stylistic improvements in the language and format of the rule, including the addition of an alternative date for the entry of judgment when the separate document was delayed or overlooked. See footnote 4 above. The alternate method of computing the date of entry of judgment has not been incorporated into Rule 2-601.
Judgment on Jury Verdict
362 Md. at 154 n. 4, 763 A.2d 185. The Court noted that its example was based on the federal form.
Progressive also suggests in passing that the voluntary dismissal acted as a consent judgment. A voluntary dismissal by stipulation is not a consent judgment unless it is endorsed by the court. See Kent Island, LLC v. DiNapoli, 430 Md. 348, 359-60, 61 A.3d 21 (2013) (settlement agreement was transformed into consent order when the judge signed and entered a court order embodying the agreement); Chernick v. Chernick, 327 Md. 470, 478, 610 A.2d 770 (1992) ("Consent judgments or decrees are essentially agreements entered into by the parties which must be endorsed by the court. They have attributes of both contracts and judicial decrees."); Jones v. Hubbard, 356 Md. 513, 525, 740 A.2d 1004 (1999) (noting that when parties ask a court to render judgment based on a settlement agreement, the critical element of judicial conclusiveness is added to the parties' agreement) (citation omitted).
Effective November 8, 2005, clarifying language and a new section (b) were added to Rule 2-506. The provision governing dismissals "By Order of Court" is now section (c).
Maryland Rule 2-602(a) (emphasis added).
The Third and Seventh Circuits have developed tests for determining whether a document satisfies the separate document requirement that, although not specifically waiving the signature requirement, suggest that an unsigned order could satisfy the test. See Am. Nat. Bank & Trust Co. of Chicago v. Sec'y of Hous. & Urban Dev. of Washington, D.C., 946 F.2d 1286, 1289 (7th Cir.1991) (a separate document must be (1) self-contained and separate from the opinion (2) note the relief granted and (3) omit the district court's reasons for disposing of the claims); In re Cendant Corp. Securities Litigation, 454 F.3d 235 (3rd Cir.2006) (same); but see Brown v. Fifth Third Bank, 730 F.3d 698, 701 (7th Cir.2013) (one judge ruling on a motion to dismiss the appeal) (stating Rule 58 requires "that the separate document be signed by the court clerk").
Minutes of Standing Committee on Rules of Practice and Procedure (May 17, 1996) at 4-5. It is not evident to us — from a review of the entire passage — that the Rules Committee had a view as to the continued vitality of Houghton under the proposed amendments. There is no mention of Houghton here or elsewhere in the minutes and the cryptic nature of the minutes leaves much room for interpretation. A review of the recording of the hearing conducted by this Court on the 1997 amendment uncovered no reference to Houghton or piecemeal judgments.