Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_09-cv-00360/USCOURTS-azd-2_09-cv-00360-4/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:2201 Declaratory Judgment

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WO 

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA 

American Family Mutual Insurance 

Company, 

Plaintiff, 

v. 

Milo Bergenson, et al, 

Defendants.

No. CV09-0360 PHX DGC

ORDER 

 Plaintiff has renewed its motion for attorneys’ fees in the amount of 

$122,835.50 (Doc. 134) after the Ninth Circuit affirmed the ruling of this Court 

(Doc. 133-1). The motion is fully briefed. Docs. 128, 134-136. No party has requested 

oral argument. The Court will deny the motion. 

Plaintiff seeks a fee award pursuant to A.R.S. § 12-341.01(A). Under Arizona 

law, a trial court has discretion in awarding attorneys’ fees and should consider several 

factors when making its decision. Velarde v. PACE Membership Warehouse, Inc., 105 

F.3d 1313, 1319-20 (9th Cir. 1997); Associated Indemn. Corp. v. Warner, 694 P.2d 1181, 

1184 (Ariz. 1985) (en banc); Uyleman v. D.S. Rentco, 981 P.2d 1081, 1086 (Ariz. Ct. 

App. 1999). Among those factors, the court should consider whether a fee award “would 

cause undue hardship.” Woerth v. City of Flagstaff, 808 P.2d 297, 305 (Ariz. Ct. App. 

1990). 

Defendants have submitted two affidavits explaining the financial condition of the 

parties who would bear any award of attorneys’ fees to Plaintiff. Doc. 135-2 at 3, 5. 

Case 2:09-cv-00360-DGC Document 138 Filed 06/19/12 Page 1 of 2
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Amy Lyn and Christopher Bergeson both assert that they cannot afford to pay fees or 

costs. Doc. 135-2 at 3, 5. Amy Lyn is sixteen and unemployed. Doc. 135-2 at 3. 

Christopher is twenty-one and earns $2,600 per month as a welder. Doc. 135-2 at 5. 

They currently live with their father in Tucson, Arizona. Doc. 135-2 at 3, 5. Plaintiff 

states that Defendants still have a pending suit against West Frontier Condominiums 

HOA which may yield funds to pay the attorneys’ fees requested. Docs. 128 at 6, 

136 at 4. But Plaintiff provides no information about the likelihood of success in that 

lawsuit or the amount of any possible recovery. Docs. 128 at 6, 136 at 4. Given 

Defendants’ current financial situation, the Court cannot conclude that the mere prospect 

of another recovery alleviates the financial hardship that would be imposed by a fee 

award. The Court therefore concludes, in its discretion, that an award of fees should not 

be made under A.R.S. § 12-341.01. 

IT IS ORDERED that Plaintiff’s renewed motion for award of attorneys’ fees 

(Doc. 134) is denied. 

 Dated this 19th day of June, 2012. 

Case 2:09-cv-00360-DGC Document 138 Filed 06/19/12 Page 2 of 2