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Issue: What elements are necessary for an award of attorneys’ fees in an insurance bad faith action in Arizona?
| Area of Law: | Insurance Law, Litigation & Procedure |
| Keywords: | Grant or denial of an award of attorneys' fees; An insurance bad faith action; Discretion |
| Jurisdiction: | Arizona |
| Cited Cases: | 145 Ariz. 1; 647 P.2d 1127; 675 P.2d 1333; 888 P.2d 1315; 699 P.2d 376; 139 Ariz. 506; 800 P.2d 20; 726 P.2d 565; 141 Ariz. 414; 734 P.2d 76 |
| Cited Statutes: | Ariz. Rev. Stat. §12 341.01(A); Ariz. Rev. Stat. § 12 350 (1992 & Supp. 1998-99); Ariz. Rev. Stat. § 12 350(5); Ariz. Rev. Stat. § 12 350(6) |
| Date: | 06/01/2000 |
On appeal, an appellate court reviews the grant or denial of an award of attorneys’ fees under Ariz. Rev. Stat. §12‑341.01(A) (1992 & Supp. 1998-99) for abuse of discretion. Suciu v. AMFAC Distrib. Corp., 138 Ariz. 514, 520, 675 P.2d 1333, 1339 (Ct. App. 1983). The appellate court will not substitute its judgment for that of the trial court so long as the record contains a reasonable basis for the exercise of the trial court’s discretion. Solar‑West, Inc. v. Falk, 141 Ariz. 414, 421, 687 P.2d 939, 946 (Ct. App. 1984); Wheel Estate Corp. v. Webb, 139 Ariz. 506, 508, 679 P.2d 529, 531 (Ct. App. 1983).
Section 12‑341.01(A) provides that “in any contested action arising out of a contract, express or implied, the court may award the successful party reasonable attorney’s fees.” Ariz. Rev. Stat. § 12‑341.01(A) (1992 & Supp. 1998-99) (emphasis added.)
Arizona courts have repeatedly held that the grant or denial of attorneys’ fees under this section is within the sound discretion of the trial judge, who is in the best position to determine whether an award is justified under all the facts and circumstances of the case. See, e.g., Ponderosa Plaza v. Siplast, 181 Ariz. 128, 132-33, 888 P.2d 1315, 1319-20 (Ct. App. 1993).
In awarding attorneys’ fees, the trial court is guided in the exercise of its discretion by Ariz. Rev. Stat. § 12‑350 (1992 & Supp. 1998-99), which requires […]