Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_04-cv-01700/USCOURTS-azd-2_04-cv-01700-1/pdf.json

Parties Involved:
Church Mutual Insurance Company
Counter Claimant
Holy Trinity Greek Orthodox Church
Counter Defendant

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

HOLY TRINITY GREEK ORTHODOX

CHURCH, a non-profit organization,

Plaintiff,

v.

CHURCH MUTUAL INSURANCE

COMPANY, a foreign corporation,

Defendant.

NO. CIV-04-1700-PHX-SMM

ORDER 

Pending before the Court is Defendant/Counter-Claimant Church Mutual Insurance

Company's ("Church Mutual") Motion for Attorneys' Fees. (Dkt. 58.) After considering

Defendant's Motion (Dkt. 58), Plaintiff's Objection to Church Mutual's Motion for

Attorneys' Fees (Dkt. 59), Defendant's Reply to Plaintiff's Objection to Motion for

Attorneys' Fees (Dkt. 60), Defendant's Memorandum in Support of its Motion for Attorneys'

Fees (Dkt. 63), Plaintiff's Response in Opposition to Church Mutual's Memorandum in

Support of its Motion for Attorneys' Fees (Dkt. 65), and Defendant's Reply to Plaintiff's

Objection to Motion for Attorneys' Fees (Dkt. 66), the Court issues this Order.

BACKGROUND

On July 29, 2004, Plaintiff filed a Complaint in the Superior Court for the County

of Maricopa alleging the following four counts: 1) Count I: Breach of Contract; 2) Count

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II: Bad Faith; 3) Count III: Breach of the Covenant of Good Faith and Fair Dealing; and 4)

Count IV: Unfair Claim Settlement Practices. On August 16, 2004, the case was removed

to this Court. (Dkt.1.) On March 29, 2005, the Court granted Defendant's Motion to Dismiss

Count IV of the complaint. (Dkt. 21.) On January 4, 2006, the Court granted Defendant's

Motion for Summary Judgment on Coverage Issues. (Dkt. 57.) Plaintiff's other claims for

relief, bad faith and breach of the covenant of good faith and fair dealing, still remain.

STANDARD OF REVIEW

Attorneys' fees are not ordinarily taxable as costs against the losing party. See

Hensley v. Eckerhart, 461 U.S. 424, 429 (1983). However, this Court is authorized to award

fees to a successful party in any contract action. ARIZ. REV. STAT. § 12-341.01(A). This

award is discretionary, and A.R.S. §12-341.01 does not establish a presumption that fees

be awarded in such actions. Assoc'd Indem. Corp. v. Warner, 694 P.2d 1181, 1182-83 (Ariz.

1985). The burden of proving entitlement to attorneys' fees pursuant to §12-341.01 lies with

the moving party. Woerth v. City of Flagstaff, 808 P.2d 297, 304 (Ariz. Ct. App. 1990).

Pursuant to Rule 54(d)(2)(D) of the Federal Rules of Civil Procedure, this Court has

established special procedures for resolving attorneys' fees requests. Rule 54.2 of the Local

Rules of Civil Procedure ("LRCiv") of the United States District Court for the District of

Arizona governs claims for attorneys' fees and related non-taxable expenses. LRCiv

54.2(b)(1) provides that unless otherwise provided by statute or court order, a party seeking

an award of attorneys' fees and related non-taxable expenses must file and serve a motion

for attorneys' fees and related non-taxable expenses within fourteen days of the entry of

judgment in the action.

DISCUSSION

On January 18, 2006, Defendant moved for attorneys' fees under Fed. R. Civ. P.

54(d) and LRCiv 54.2(b)(1), as applicable to the Court's January 4, 2006 Order, which

granted summary judgment in Defendant’s favor on Plaintiff's breach of contract claim.

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(Dkt. 58.) The Court finds that Defendant's Motion for Attorneys' Fees is premature. As

Defendant notes, "[t]his matter arises out of the insurance contract" Defendant issued to

Plaintiff. (Dkt. 63 at 3.) Notwithstanding the Court's interpretation of the "earth movement"

exclusion with respect to the breach of contract claim, other claims arising out of the

insurance contract remain to be resolved, specifically the bad faith and breach of the

covenant of good faith and fair dealing claims. Moreover, although partial summary

judgment was granted on the breach of contract claim, the Court has not entered a final

judgment in the case.

The Court finds it prudent to examine the award of attorneys' fees for all claims

arising out of the contract of insurance together rather than to do so in piecemeal fashion

before a final judgment is entered. Because outstanding claims arising out of the contract

of insurance remain, and no final judgment has been entered, Defendant's Motion for

Attorneys' Fees is premature. Consequently, the Court will deny Defendant's Motion

without prejudice and with leave to re-file upon the entry of final judgment in this case.

Accordingly, 

IT IS HEREBY ORDERED DENYING without prejudice Defendant Church

Mutual's Motion for Attorneys' Fees. (Dkt. 58.) Defendant may re-file its Motion for

Attorneys' Fees upon the entry of final judgment in this case.

DATED this 6th day of July, 2006.

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