Find Staff LLC v. Palm Beach Tours & Transportation LLC, et al.

CourtDistrict Court, D. Arizona
DecidedMay 20, 2026
Docket2:25-cv-01429
StatusUnknown

This text of Find Staff LLC v. Palm Beach Tours & Transportation LLC, et al. (Find Staff LLC v. Palm Beach Tours & Transportation LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Find Staff LLC v. Palm Beach Tours & Transportation LLC, et al., (D. Ariz. 2026).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Find Staff LLC, No. CV-25-01429-PHX-ROS

10 Plaintiff, ORDER

11 v.

12 Palm Beach Tours & Transportation LLC, et al., 13 Defendants. 14 15 Pending before the Court is Defendants’ Motion for an Award of Their Reasonable 16 Attorneys’ Fees (Doc. 17) seeking $64,696.11 in fees and costs. Plaintiff responded in 17 opposition, (Doc. 20), and Defendants replied, (Doc. 21). For the reasons that follow, the 18 Court will award Defendants their requested attorney’s fees and costs. 19 I. BACKGROUND 20 The Court has already fully outlined the background and procedural history of this 21 case in a prior Order and will not do so again here. (See Doc. 16 at 1–3.) 22 II. LEGAL STANDARD 23 A party seeking an award of attorney’s fees must show it is (1) eligible for and 24 (2) entitled to an award, as well as that the requested amount is (3) reasonable. LRCiv 25 54.2(c). Eligibility and entitlement to an award is dependent on “the applicable statutory 26 or contractual authority upon which the movant seeks an award.” LRCiv 54.2(c)(1). 27 Diversity jurisdiction is this Court’s sole basis for jurisdiction, so it must “appl[y] state law 28 in deciding whether to allow attorney’s fees when those fees are connected to the substance 1 of the case.” In re Larry’s Apartment, 249 F.3d 832, 838 (9th Cir. 2001) (quoting Price v. 2 Seydel, 961 F.2d 1470, 1475 (9th Cir. 1992)). 3 Defendants specifically seek fees under A.R.S. § 12-341.01(A), which provides that 4 in “any contested action arising out of a contract, express or implied, the court may award 5 the successful party reasonable attorney fees.” Any award under § 12-341.01(A) “should 6 be made to mitigate the burden of the expense of litigation to establish a just claim or a just 7 defense.” Id. § 12-341.01(B). Courts have broad discretion when determining whether to 8 award fees under § 12-341.01(A). Associated Indem. Corp. v. Warner, 694 P.2d 1181, 1184 9 (Ariz. 1985). 10 III. ANALYSIS 11 Defendants seek $64,280.50 in attorney’s fees incurred in successfully defending 12 against Plaintiff’s claims. (Doc. 17.) Plaintiffs argue Defendants are not eligible nor 13 entitled to a fee award, and alternatively that the requested award is not reasonable. (Doc. 14 20.) 15 A. Eligibility 16 Defendants, as the successful parties in this litigation, are eligible for an award of 17 reasonable attorney’s fees under A.R.S. § 12-341.01(A).1 Plaintiff’s six claims are all 18 “arising out of a contract” or interwoven with the contract claims for purposes of § 12- 19 341.01(A). Counts One and Two for breach of contract and breach of implied covenant 20 clearly arise out of contract. Count Three for unjust enrichment arises out of contract 21 because the claim would not have existed but for the contract between the parties. See, e.g., 22 Schwab Sales, Inc. v. GN Constr. Co., Inc., 992 P.2d 1128, 1132 (Ariz. Ct. App. 1998). 23 And Counts Four through Six for tortious interference with contractual relations, tortious 24 interference with business expectancy, and civil conspiracy are all “inextricably 25 interwoven” with the contract claims.2 See, e.g., Modular Mining Sys., Inc. v. Jigsaw

26 1 Much of Plaintiff’s argument on this issue discusses factors relevant to whether Defendants are entitled to a fee award, not whether they are eligible. (See Doc. 20 at 4:21– 27 6:6.) 2 Plaintiff’s failure to respond to the argument that the non-contract claims are interwoven 28 with the contract claims constitutes waiver of the issue. See, e.g., Hurry v. Fin. Indus. Regul. Auth., Inc., 782 F. App’x 600, 602 (9th Cir. 2019); Doe v. Dickenson, No. CV-07- 1 Techs., Inc., 212 P.3d 853, 860 (Ariz. Ct. App. 2009). 2 Additionally, Plaintiff argues Defendants are ineligible for a fee award because “the 3 dismissal in this case was without prejudice and rested solely on personal jurisdiction 4 grounds.” (Doc. 20 at 5.) Not so. Under A.R.S. § 12-341.01(A), “a defendant who files a 5 successful motion to dismiss for lack of personal jurisdiction” is eligible for a fee award. 6 Balestrieri v. Balestrieri, 300 P.3d 560, 563 (Ariz. Ct. App. 2013); see Erskine v. Fenn, 7 No. CV-20-08123-PCT-JJT, 2021 WL 9597924, at *1 (D. Ariz. Dec. 1, 2021) (“For a 8 defendant there can be no greater success than full dismissal. To the extent Plaintiff argues 9 that because the Court dismissed on jurisdictional grounds rather than on the merits of the 10 contract question, Defendant was not the ‘successful party,’ the Court rejects that argument 11 soundly. Defendant won. The case is over.”); Med. Protective Co. v. Pang, 740 F.3d 1279, 12 1283 (9th Cir. 2013) (“Arizona appellate courts have repeatedly held that an adjudication 13 on the merits is not a prerequisite to recovering attorney's fees under Section 12–341.01.” 14 (citation modified)). 15 Lastly, Defendants alternatively argue they are eligible for a fee award under the 16 fee-shifting provision in the contract between the parties. However, the language of this 17 provision only applies to arbitration and related proceedings:

18 The cost of the arbitration proceeding and any proceeding in court to confirm or to vacate any arbitration award, as applicable (including, without 19 limitation, reasonable attorneys’ fees and costs), shall be borne by the unsuccessful party, as determined by the arbitrators, and shall be awarded as 20 part of the arbitrator’s award. 21 (Doc. 12-2 at 10, § 14.) These proceedings were not “to confirm or to vacate any arbitration 22 award,” so this fee-shifting provision does not provide independent grounds to award 23 Defendants attorney’s fees. Thus, the Court must determine whether Defendants are 24 entitled to fees under A.R.S. § 12-341.01(A). 25 B. Entitlement 26 “Mere eligibility [under § 12–341.01(A)] does not establish entitlement to fees.” 27 Wagenseller v. Scottsdale Mem’l Hosp., 710 P.2d 1025, 1049 (Ariz. 1985). Rather, courts 28 1998-PHX-GMS, 2008 WL 4933964, at *5 (D. Ariz. Nov. 14, 2008).

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Find Staff LLC v. Palm Beach Tours & Transportation LLC, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/find-staff-llc-v-palm-beach-tours-transportation-llc-et-al-azd-2026.