SHUMATE v. DAVIS/BROADBENT

Court of Appeals of Arizona·Decided August 25, 2026·No. 1 CA-CV 25-0984·Unpublished·D. Andrew Gaona

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION.

UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE

ARIZONA COURT OF APPEALS

DIVISION ONE

MARK SHUMATE, Plaintiff/Appellee,

v.

RICHARD DAVIS, et al., Defendants/Appellees,

CRAIG BROADBENT, Appellant,

PAGE MORRIS, Third Party Defendant/Appellee.

No. 1 CA-CV 25-0984

FILED 08-25-2026

Appeal from the Superior Court in Maricopa County No. CV2019-003338

The Honorable Erik Thorson, Judge

AFFIRMED

COUNSEL

Mark Shumate, Fort Lauderdale, Florida Plaintiff/Appellee

Richard Davis, Beverly Hills, California Defendants/Appellees

Craig Broadbent, Phoenix Appellant

Rose Law Group PC, Flagstaff By Olen V. Lenets Counsel for Third Party Defendant/Appellee

MEMORANDUM DECISION

Judge D. Andrew Gaona delivered the decision of the Court, in which Presiding Judge Jennifer M. Perkins and Judge Brian Y. Furuya joined.

G A O N A, Judge:

¶1 Craig W. Broadbent appeals the award of attorneys’ fees and costs imposed against him as a sanction under A.R.S. § 12-349(A)(1). The superior court sanctioned Broadbent for continuing to pursue, on his clients’ behalf, a civil conspiracy claim against Page Morris premised on unjust enrichment. Broadbent did so despite Morris repeatedly explaining that unjust enrichment isn’t a tort and thus could not serve as the underlying tort necessary to maintain a civil conspiracy claim.

¶2 Broadbent contends there is no final judgment against him and asks us to dismiss his appeal, direct the superior court to recognize that no judgment exists against him, and prohibit further filings concerning him. Alternatively, he challenges the sanctions award on several grounds, including the superior court’s authority to sanction him and the factual and legal bases for the award. Because the final judgment permits our review of the judgment against Broadbent and the superior court didn’t err in imposing reasonable sanctions against a lawyer who prosecuted a frivolous claim, we affirm.

FACTS AND PROCEDURAL HISTORY

¶3 Mark Shumate and Richard Davis formed RAD Asset LLC (“RAD A”) to lease property in Scottsdale for short-term vacation rentals. Shumate and Davis were RAD A’s partners, and Davis served as its manager. Davis also managed RAD Ventures, LLC, which entered into an operating agreement with Shumate and RAD A. One Marquis, LLC, whose managing member was Davis, handled RAD A’s marketing. Shumate later

SHUMATE v. DAVIS, et al/BROADBENT Decision of the Court

proposed hiring Page Morris as a RAD A employee. Although Davis opposed the proposal, he didn’t prevent Shumate from hiring Morris.

¶4 Shumate and Davis eventually had a falling out, leading Shumate to sue Davis, One Marquis, and RAD Ventures (“Davis”). Represented by Broadbent, Davis counterclaimed against Shumate and filed a third-party complaint against Morris. As is relevant here, Davis asserted unjust-enrichment, aiding-and-abetting, and civil-conspiracy claims against Shumate and Morris, and intentional interference with business expectancy against Morris.

¶5 Morris, then representing herself, moved to dismiss the third- party complaint. The superior court dismissed the civil conspiracy claim because civil conspiracy isn’t an independent cause of action but denied dismissal of the unjust-enrichment, aiding-and-abetting, and intentionalinterference -with-business-expectancy claims. The court granted Davis leave to amend the conspiracy claim to identify an underlying tort. Davis amended the claim to allege “Civil Conspiracy to Commit Unjust Enrichment.” Shortly after, Shumate’s counsel appeared on Morris’ behalf.

¶6 Morris and Shumate again moved to dismiss. They argued, among other things, that unjust enrichment is a quasi-contract remedy rather than a tort and thus couldn’t supply the tort underlying Davis’ conspiracy claim. Davis opposed the motion, maintaining that “[t]he tort of unjust enrichment” could support the claim. Morris and Shumate replied that Davis cited no authority treating unjust enrichment as a tort. The court denied the motion because Morris and Shumate didn’t attach the good faith consultation certification required by Arizona Rule of Civil Procedure 7.1.

¶7 While the motion to dismiss was pending, Davis moved for partial summary judgment against Shumate. The superior court denied the motion. The parties later exchanged offers of judgment. Morris then moved for summary judgment on Davis’ remaining claims against her, arguing (again) that unjust enrichment isn’t a recognized tort in Arizona, meaning Davis failed to state a claim for civil conspiracy.

¶8 The superior court granted Morris summary judgment, agreeing that unjust enrichment is an equitable remedy rather than a tort. It concluded no reasonable juror could find Morris was unjustly enriched. The court also rejected Davis’ aiding-and-abetting theories because unjust enrichment isn’t a tort and Morris couldn’t aid and abet her own interference. And because civil conspiracy requires an underlying tort that the alleged conspirators agreed to commit, the court concluded Davis’

SHUMATE v. DAVIS, et al/BROADBENT Decision of the Court

claim for civil conspiracy to commit unjust enrichment failed as a matter of law.

¶9 Morris then moved for sanctions against Davis and Broadbent under A.R.S. § 12-349 and the court’s inherent authority. She argued that Davis pursued groundless claims against her, continued litigating those claims despite notice of their deficiencies, and unnecessarily expanded the proceedings. After Morris moved for sanctions, the superior court scheduled a trial-setting conference and ordered the parties to meet and confer beforehand because the sanctions motion would be addressed at the conference. Broadbent withdrew as Davis’ counsel a few days later. At the conference, Davis had new counsel and another attorney from Broadbent’s firm attended. Davis and his new counsel responded to the sanctions motion and provided Broadbent a copy. Morris then moved for entry of judgment against Broadbent because he didn’t timely respond and replied in support of her sanctions as to Davis. Broadbent received copies of both. Broadbent then responded to Morris’ proposed judgment.

¶10 The superior court granted the motion in part (“sanctions order”), because the conspiracy to commit unjust enrichment claim was brought without substantial justification, and awarded reasonable attorneys’ fees and costs against Davis and Broadbent. Though the sanctions order specified that sanctions were appropriate under § 12- 349(A)(2), the court later corrected itself and clarified that it imposed sanctions under § 12-349(A)(1). Morris applied for a total of $53,937.43 in attorneys’ fees and costs. Broadbent moved for additional time to file a motion for reconsideration of the sanctions ruling and to respond to Morris’ fee application. The court denied reconsideration but gave Broadbent 10 days after that ruling to respond to the fee application. Davis challenged the amount of fees; Broadbent didn’t. In October 2022, the superior court awarded Morris $18,647.50 in attorneys’ fees and $5,457.93 in costs (“October order”), determining that only those fees associated with the claim for conspiracy to commit unjust enrichment were reasonable.

¶11 Morris lodged a proposed judgment, and in November 2022 the superior court purported to enter judgment against Broadbent for the sanctions award (“November order”). But the November order didn’t contain Rule 54(b) language. In May 2024, the court entered judgment resolving Morris’ claims against Davis, awarding the same fees and costs against Davis and Broadbent jointly and severally.

¶12 Davis and Shumate went to trial in July 2025. Broadbent filed a notice of appeal before entry of a final judgment, and we dismissed that

SHUMATE v. DAVIS, et al/BROADBENT Decision of the Court

appeal. The superior court then entered a final judgment under Rule 54(c) in October 2025. Broadbent timely appealed.

DISCUSSION

Free access — add to your briefcase to read the full text and ask questions with AI

SHUMATE v. DAVIS/BROADBENT, (Ark. Ct. App. 2026).

SHUMATE v. DAVIS/BROADBENT (SHUMATE v. DAVIS/BROADBENT) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Trantor v. Fredrikson
878 P.2d 657 (Arizona Supreme Court, 1994)
Rourk v. State
821 P.2d 273 (Court of Appeals of Arizona, 1991)
Scottsdale Princess Partnership v. Maricopa County
916 P.2d 1084 (Court of Appeals of Arizona, 1995)
Phoenix Newspapers, Inc. v. Department of Corrections
934 P.2d 801 (Court of Appeals of Arizona, 1997)
Ritchie v. Krasner
211 P.3d 1272 (Court of Appeals of Arizona, 2009)
Baker v. Stewart Title & Trust of Phoenix, Inc.
5 P.3d 249 (Court of Appeals of Arizona, 2000)
Marriage of Donlann v. MacGurn
55 P.3d 74 (Court of Appeals of Arizona, 2002)
Precision Components v. Harrison, Harper
880 P.2d 1098 (Court of Appeals of Arizona, 1993)
Hurd v. Hurd
219 P.3d 258 (Court of Appeals of Arizona, 2009)
Bennett v. Baxter Group, Inc.
224 P.3d 230 (Court of Appeals of Arizona, 2010)
Savord v. Morton
330 P.3d 1013 (Court of Appeals of Arizona, 2014)
Madrid v. Avalon Care Center-Chandler, L.L.C.
338 P.3d 328 (Court of Appeals of Arizona, 2014)
Takieh M.D. v. O'Meara M.D.
497 P.3d 1000 (Court of Appeals of Arizona, 2021)
In re Radacosky
905 P.2d 540 (Court of Appeals of Arizona, 1995)
Wang Electric, Inc. v. Smoke Tree Resort, LLC
283 P.3d 45 (Court of Appeals of Arizona, 2012)
Brumett v. MGA Home Healthcare, LLC
380 P.3d 659 (Court of Appeals of Arizona, 2016)