Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_05-cv-02460/USCOURTS-azd-2_05-cv-02460-14/pdf.json

Nature of Suit Code: 371
Nature of Suit: Truth in Lending
Cause of Action: 15:1681 Fair Credit Reporting Act

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 1

 This application shall be considered a formal motion by this Court.

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Kathy Grismore,

Plaintiff,

v.

Capital One F.S.B., Capital One Services,

Inc., and Capital One Bank,

Defendants

)

)

)

)

)

)

)

)

)

)

)

No. CIV 05-2460-PHX-SMM

ORDER

Currently pending before the Court is Defendants Capital One Bank, Capital One,

F.S.B., and Capital One Services, Inc.’s (collectively “Capital One”) Application for

Reasonable Attorneys’ Fees and Costs1

 (Doc. 133) incurred in successfully moving for the

sanction of dismissal of Plaintiff’s Complaint for her repeated violations of this Court’s

orders.

STANDARD OF REVIEW

An Arizona court must award reasonable attorney's fees "in any contested action upon

clear and convincing evidence that the claim or defense constitutes harassment, is groundless

and is not made in good faith." ARIZ. REV. STAT. § 12-341.01(C). An Arizona court may

award reasonable attorney's fees to a successful party in any contract action. ARIZ. REV.

STAT. § 12-341.01(A). However, this statutory provision does not create a presumption that

a successful party is entitled to attorney's fees. Associated Indem. Corp. v. Warner, 694 P.2d

Case 2:05-cv-02460-SMM Document 134 Filed 04/08/08 Page 1 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 - 2 -

1181, 1182-83 (Ariz. 1985) (en banc). An award of reasonable attorney fees 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. ARIZ. REV. STAT. § 12-341.01(B). "It need not equal or relate

to the attorney fees actually paid or contracted, but the award may not exceed the amount

paid or agreed to be paid." Id.

The trial court has discretion to award attorney's fees under § 12-341.01(A) and is

urged to use the following factors in making its determination: (1) the merits of the claim

or defense presented by the unsuccessful party; (2) whether the litigation could have been

avoided or settled and the successful party's efforts were completely superfluous in achieving

the results; (3) whether assessing fees against the unsuccessful party would cause an extreme

hardship; (4) whether the successful party did not prevail with respect to all the relief sought;

(5) the novelty of the legal question presented; (6) whether such claim or defense had

previously been adjudicated in this jurisdiction; and (7) whether the award in any particular

case would discourage other parties with tenable claims or defenses from litigating or

defending legitimate contract issues for fear of incurring liability for substantial amounts of

attorney's fees. Warner, 694 P.2d at 1184.

In the instant case, the Plaintiff was advised by this Court on several occasions of her

duty to provide the Defendant with the documents necessary to defend this case. Plaintiff

not only repeatedly refused to do so and refused to cooperate during her deposition, but

Plaintiff’s dilatory tactics has caused the fees in this case to increase dramatically, at not

apparent faut of the Defendants. As noted previously order by this Court, Plaintiff’s obvious

disregard for this Court’s authority and her failure to comply with this Court’s orders

prevents this Court from being able to resolve the issues raised in this lawsuit. Resolution of

the matters raised in Plaintiff’s Complaint has become impossible given the circumstances

created by Plaintiff, including her repeated, deliberate noncompliance with this Court’s

orders. 

Case 2:05-cv-02460-SMM Document 134 Filed 04/08/08 Page 2 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 - 3 -

Defendants are correct in their assertion that Plaintiff’s persistence in evading this

Court’s orders severely delayed discovery and significantly exacerbated the costs of this

litigation. It would be unjust for this Court to force Defendants to pay for such high costs

when said increased costs could have been avoided simply by cooperating and complying

with this Court’s orders.

It is questionable whether there is any merit to Plaintiff’s claims because contrary to

the direct orders of this Court, Plaintiff refused to provide the Defendants with critical,

relevant discovery. It is this Court’s opinion that, settlement is not an option unless and until

all parties are conducting themselves in a matter that is both rational and reasonable.

Noncompliance with this Court’s orders is neither of two. Furthermore, filing a claim under

the Fair Credit Reporting Act, 15 U.S.C. § 1681et seq., (“FCRA”) and subsequently refusing

to provide Defendants with a copy of one’s unredacted credit reports and income tax returns

does not lend itself to the likelihood of successful settlement. Despite the fact that assessing

fees against Plaintiff may cause an extreme hardship on Plaintiff, such is outweighed by the

fact that Plaintiff has a history of vexatious litigation, noncompliance with court orders and

failing to cooperate during discovery, all of which drastically increase the fees and costs

incurred during litigation. See Doc. 124. Claims involving the FCRA come before this court

on a frequent basis, and the question presented to this Court was not novel. Finally, no other

parties would be discouraged from litigating or defending legitimate contract issue for fear

of incurring liability for substantial amounts of attorneys’ fees, in fact, if anything, this will

encourage individuals to conduct themselves in such a way that complies with the rules and

orders of the court before which they are litigating.

Accordingly,

IT IS HEREBY ORDERED GRANTING Capital One’s Application for

Reasonable Attorneys’ Fees and Costs (Doc. 133).

///

Case 2:05-cv-02460-SMM Document 134 Filed 04/08/08 Page 3 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28 - 4 -

IT IS FURTHER ORDERED that Plaintiff shall remit payment to Capital One in

the amount of $10,397.70 in attorneys’ fees and 870.84 in costs.

DATED this 7th day of April, 2008.

Case 2:05-cv-02460-SMM Document 134 Filed 04/08/08 Page 4 of 4