Kennedy v. Linda Brock Automotive Plaza, Inc.

856 P.2d 1201, 175 Ariz. 323, 144 Ariz. Adv. Rep. 35, 1993 Ariz. App. LEXIS 140
CourtCourt of Appeals of Arizona
DecidedJuly 29, 1993
Docket1 CA-CV 91-0161
StatusPublished
Cited by20 cases

This text of 856 P.2d 1201 (Kennedy v. Linda Brock Automotive Plaza, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kennedy v. Linda Brock Automotive Plaza, Inc., 856 P.2d 1201, 175 Ariz. 323, 144 Ariz. Adv. Rep. 35, 1993 Ariz. App. LEXIS 140 (Ark. Ct. App. 1993).

Opinion

OPINION

GARBARINO, Judge.

Robert T. Kennedy appeals from the trial court’s award of attorney’s fees, pursuant to Arizona Revised Statutes Annotated (A.R.S.) section 12-341.01(A), to Linda Brock Automotive Plaza, Inc. (Brock) in connection with the dismissal of Kennedy’s action against Brock under Arizona’s “Lemon Law,” A.R.S. sections 44-1261 through -1265. We hold that A.R.S. section 12-341.01(A) does not support an award of attorney’s fees to Brock because the claim against Brock did not arise out of the lease agreement between Kennedy and Brock and Brock disclaimed any warranties to Kennedy in the lease agreement.

FACTS AND PROCEDURAL HISTORY

Kennedy leased a 1989 BMW1 535iA automobile from Brock. The manufacturer warranted that the car would be free from all defects in materials and workmanship for three years or thirty-six thousand miles. The car was defective and neither Brock nor the manufacturer was able to satisfactorily fix the problems.

Kennedy ultimately sued the manufacturer and Brock seeking relief under the “Lemon Law.” After substantial discovery, Brock filed a motion for judgment on the pleadings asserting that Brock was not a proper party defendant in the “Lemon Law” action. The court granted both the motion and Brock’s request for attorney’s fees pursuant to A.R.S. section 12-341.01, awarding Brock $7,500 in fees. After denying Kennedy’s motion for reconsideration, the court entered judgment which it certified final pursuant to Arizona Rule of Civil Procedure 54(b). Kennedy filed a timely notice of appeal that stated:

Please take notice that Plaintiff Robert T. Kennedy hereby appeals to Division I of the Arizona Court of Appeals from that portion of the final Judgment dated December 11, 1990, awarding costs and attorney’s fees against Plaintiff Robert T. Kennedy and in favor of Defendant Linda Brock Automotive Plaza, Inc.

Our jurisdiction is based on A.R.S. section 12-2101(B).

ISSUES

Kennedy presents two issues on appeal:

I. Whether A.R.S. section 12-341.01 permits an award of attorney’s fees to Brock, and
II. If so, whether the trial court abused its discretion in the amount of attorney’s fees it awarded Brock.

DISCUSSION

I. Availability of Fees under A.R.S. § 12-341.01

The main issue in this case is whether Brock, in defending itself against a “Lemon Law” action under A.R.S. sections 44-1261 through -1265, was entitled to attorney’s fees under A.R.S. section 12-341.-01(A). Kennedy presents three alternative arguments to support his contention that the trial court erred in awarding fees. First, he claims that the trial court improperly dismissed Brock as a defendant and Brock was, therefore, not a successful party. Second, he argues that A.R.S. section 12-341.01(A) is inapplicable because his suit against Brock did not arise out of contract. Third, he asserts that the specific attorney’s fees provision of the “Lemon Law” precludes application of the more general contract statute.

*325 A. Dismissal of Brock as a Defendant

We are precluded from considering the merits of the trial court’s dismissal of Brock without prejudice in ruling on Brock’s motion for judgment on the pleadings because Kennedy’s notice of appeal was limited to the award of attorney’s fees and did not challenge the dismissal itself. Kennedy argues that because fees are awarded to the “successful party” under A. R.S. section 12-341.01, the court may examine the merits of the trial court’s ruling in order to determine who should have been the successful party. We rejected this same argument in Ball v. City of Chandler Improvement Dist., stating:

Finally, we conclude that Chandler’s construction of the “successful party” language of A.R.S. § 12-341.01 as permitting relitigation of the underlying merits where such merits were not challenged or contained in the notice of appeal is unwarranted. A.R.S. § 12-341.01 does not confer jurisdiction. Rather, an attack on an award of attorney’s fees is limited either to a claim that the trial judge abused his or her discretion in awarding the fees, Associated Indem. Corp. v. Warner, 143 Ariz. 567, 694 P.2d 1181 (1985), or that the claim upon which the award is based did not “arise out of contract” within the meaning of the statute. ASH, Inc. v. Mesa Unified Sch. Dist. No. 4, 138 Ariz. 190, 673 P.2d 934 (App.1983). All other issues must be specifically contained in the notice of appeal in order to confer jurisdiction on the appellate court. See Lee v. Lee, [133 Ariz. 118, 649 P.2d 997 (App.1982)].

150 Ariz. 559, 563, 724 P.2d 1228, 1232 (App.1986). Consequently, we lack jurisdiction to consider Kennedy’s argument challenging the trial court’s dismissal of Brock.

B. Arising out of Contract

Pursuant to A.R.S. section 12-341.-01(A), attorney’s fees may be awarded only in an action “arising out of contract.” If a cause of action is purely statutory, section 12-341.01(A) does not apply. O’Keefe v. Grenke, 170 Ariz. 460, 472, 825 P.2d 985, 997 (App.1992). Kennedy argues that his cause of action against Brock was purely statutory. We agree.

For purposes of A.R.S. section 12-341.01(A), an action arises out of contract if it could not exist but for the contract. Sparks v. Republic Nat’l Life Ins. Co., 132 Ariz. 529, 543, 647 P.2d 1127, 1141, cert. denied, 459 U.S. 1070, 103 S.Ct. 490, 74 L.Ed.2d 632 (1982). The statute does not apply if the contract is only a factual predicate to the action but not the essential basis of it. Cashway Concrete & Materials v. Sanner Contracting Co., 158 Ariz. 81, 83, 761 P.2d 155, 157 (App.1988). In that case, Cashway supplied concrete to a subcontractor of Sanner. When the subcontractor failed to pay for the concrete, Cashway sued Sanner, seeking the statutory remedy of a materialman’s lien. The court found that although a breach of contract between Cashway and the subcontractor was a factual predicate to the action, it was not the essential basis of it.

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Cite This Page — Counsel Stack

Bluebook (online)
856 P.2d 1201, 175 Ariz. 323, 144 Ariz. Adv. Rep. 35, 1993 Ariz. App. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennedy-v-linda-brock-automotive-plaza-inc-arizctapp-1993.