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ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

 

FACT SHEET FOR S.B. 1643

 

attorney feeds; costs; recovery

Purpose

            Allows a court to award fees to specified prevailing litigants in civil actions brought against the state, city, town or county, as outlined.

Background

            In addition to any costs that are awarded as prescribed by statute, a court must award fees and other expenses to any party other than the state or a city, town or county that prevails by an adjudication on the merits in outlined civil actions. Examples of when costs are required to be awarded include: 1) civil actions brought by the state or a city, town or county against the party; 2) a court proceeding for judicial review of a state, city, town or country decision; 3) a special action proceeding brought by the party to challenge an action by the state, a city, town or county against the party; and 4) a civil action brought by the party to challenge the seizure and sale of personal property by the state or a city, town or county (A.R.S. § 12-348).

            In any contested action arising out of a contract, express or implied, the court may award the successful party reasonable attorney fees. Statute specifies that the award of reasonable attorney fees should be made to mitigate the burden of the expense of litigation to establish a just claim or a just defense. The court, and not a jury, is responsible for awarding reasonable attorney fees (A.R.S. § 12-341.01).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires a court to award fees and other expenses to any party, other than the state, a city, town or county, that prevails by an adjudication on the merits in a civil action brought by a party seeking declaratory or injunctive relief against the state or a city, town or county, for an action that violates the U.S. Constitution, the Arizona Constitution or Arizona law.

2.   Exempts, from the permissive authority of a court to award the successful party reasonable attorney fees in a contested action arising out of a contract:

a)   a contested action in which a government entity is a party to the contract and the contract or contract provision is alleged to violate the U.S. Constitution, Arizona Constitution or Arizona law; or

b)   an action that seeks only equitable relief against a government entity.

3.   Makes technical changes.

4.   Becomes effective on the general effective date.

Prepared by Senate Research

February 9, 2021

JA/kja