Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_08-cv-02220/USCOURTS-azd-2_08-cv-02220-3/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Breach of Contract

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 WO

NOT FOR PUBLICATION

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Bank of the West, Inc., 

Plaintiff, 

vs.

Organic Grain & Milling, Inc., 

Defendant. 

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No. CV-08-2220-PHX-FJM

ORDER

The court has before it plaintiff’s motion for attorneys’ fees (doc. 42), defendant’s

response (doc. 46), and plaintiff’s reply (doc. 47).

On April 30, 2010, judgment was entered in favor of plaintiff and against defendant

in the amount of $171,324.07. As the prevailing party, plaintiff now seeks $68,819.00 in

attorneys’ fees under A.R.S. § 12-341.01. 

We first reject defendant’s argument that the motion for attorneys’ fees is untimely

because it was filed five days after judgment was entered. Pursuant to Rule 54(d)(2)(B)(I),

Fed. R. Civ. P., a motion seeking attorneys’ fees must “be filed no later than 14 days after

the entry of judgment.” Plaintiff’s motion was timely.

We also reject defendant’s argument that Colorado, not Arizona, law applies. For the

same reasons set forth in our order dated April 30, 2010 (doc. 49), we conclude that Arizona

law applies.

Case 2:08-cv-02220-FJM Document 51 Filed 05/07/10 Page 1 of 3
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A.R.S. § 12-341.01 provides for a discretionary award of attorney’s fees to the

prevailing party in an action arising out of contract. In deciding whether to award fees, we

consider a number of factors, including (1) whether the unsuccessful party's claim or defense

was meritorious; (2) whether the litigation could have been avoided or settled; (3) whether

assessing fees would cause extreme hardship; (4) whether the successful party prevailed with

respect to all relief sought; (5) whether the legal question was novel; and (6) whether the

award would discourage other parties with tenable claims from litigating them. Associated

Indem. Corp. v. Warner, 143 Ariz. 567, 570, 694 P.2d 1181, 1184 (1985). An award of

attorneys' fees pursuant to this statute is discretionary in nature and the prevailing party in

an action arising out of contract is not presumed to be entitled to an award of fees. Id. at 569,

694 P.2d at 1183. An award is made to "mitigate the burden of the expense of litigation" and

"need not equal or relate to" the fees actually incurred. A.R.S. § 12-341.01(B).

We first find that defendant’s legal position was not entirely meritorious. Defendants

retained the proceeds from the Wilcox crop with scant legal justification for doing so.

Plaintiff asserts that settlement was not possible. Plaintiff obtained all of the relief sought.

The legal questions involved breach of contract issues that were not novel. A fee award

would not discourage parties with tenable claims from litigating. Each of these factors

weighs in plaintiff’s favor. Defendant contends, however, that an award of fees would cause

an extreme hardship. It contends that it is a small business in the organic food industry

without the means to pay a large fee award. This factor weighs in defendant’s favor.

After considering each of the Warner factors, we conclude that fees are appropriate,

although in an amount less than that requested. Plaintiff requests fees of almost $70,000 for

a straightforward breach of contract case that was decided on a motion for summary

judgment. Plaintiff employed six lawyers, expending approximately 277 hours in total

attorney time, at rates of up to $365.00 an hour—in excess of prevailing Phoenix rates.

Based on our conclusion that the award requested is excessive, as well as defendant’s

professed hardship, we conclude that $35,000 is an appropriate fee award in this case. 

Case 2:08-cv-02220-FJM Document 51 Filed 05/07/10 Page 2 of 3
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IT IS THEREFORE ORDERED GRANTING in part and DENYING in part

plaintiff’s motion for an award of attorneys' fees (doc. 42). Fees are allowed in the amount

of $35,000. 

DATED this 6th day of May, 2010.

Case 2:08-cv-02220-FJM Document 51 Filed 05/07/10 Page 3 of 3