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

District Court, D. Arizona·Decided May 20, 2026·No. 2:25-cv-01429·Unknown

Opinion

WO

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

Plaintiff, ORDER

v.

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

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

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

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