T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T A L E J A N D R O L O P E Z , am a rr ie d m a n in h is s o le & s e p a r a te r ig h t, P l ai nt i ff

- A pp el l ee , v. MUS I NO R T E E NT E R T AI NME NT C O R P O R A T IO N , a N ew M exi co c o rp o r a tio n ; H U R A C A N E S , I N C ., a C al i forni a c orpo ra t i on ; H E R A C L IO GA R C I A, h u s b a n d ; R OS A G AR C I A, w i f e ; F R A N C I S C O G A R C I A , hus ba nd; I R M A G A R C I A , w if

e ; J E S U S G A R C I A , a s i n g l e m a n ; GU AD AL UP E GA R C I A, h u s b a n d ; LOS HURACAN ES DEL N O R T E , a n A r i z onapa rtne r s hi p, D efen d an t s - A p p el l an t s, a nd D O R A L E T IC IA G A R C IA , w i fe D e f

e n d a n t. N o. 09- 17417 D . C . N o . 4 : 0 3 - c v - 0 0 1 6 7 - J MR ME MOR AN DU M *

A L E J A N D R O L O P E Z , am a rr ie d m a n in h is s o le & s e p a r a te r ig h t, N o. 10- 16637 

# FI LED MA Y26 2 011 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALST he H on orabl e L ee H . R osenthal , D i stri ctJudg e f or the U . S . D i stri ct ** C ourtf orS outhe rn T e xa s , H ous t on, s i tt i ng by de s i gna t i on.

- 2- P l ai nt i ff

- A pp el l ee , v. MUS I NO R T E E NT E R T AI NME NT C O R P O R A T IO N , a N ew M exi co c o rp o r a tio n ; H U R A C A N E S , I N C ., a C al i forni a c orpo ra t i on ; H E R A C L IO GA R C I A, h u s b a n d ; R OS A G AR C I A, w i f e ; F R A N C I S C O G A R C I A , hus ba nd; I R M A G A R C I A , w if

e ; J E S U S G A R C I A , a s i n g l e m a n ; GU AD AL UP E GA R C I A, h u s b a n d ; DO R A L E T I C I A G AR C I A, wi f e ; LOS HURACAN ES DEL NORTE , a n A r i z onapa rtne r s hi p, D efen d an t s - A p p el l an t s. D . C . N o . 4 : 0 3 - c v - 0 0 1 6 7 - J MR

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt

f orthe D i s tr i c tof

A r i z ona J ohn M . R ol l , D i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d M a y11, 2011 S a n F r a n c is c o , C a lif

o rn ia Be f o r e : B. FL ET CHERa n d THOM AS, Ci r c u i tJ u d g e s , a n d ROSE NTHA L, D i stri ctJudg e. ** In C as e N o. 09 -174 17 , M usi no rt e E nt ert ai nm entC orpo ra t i on and o thers (c ol l ec t i vel y “ M usi no rt e” ) app ea l the di stri ctcourt ’ s j ud gm ent , fol l ow i ng a j ury- 3-

tri al , i n favor of A l ej andro L op ez i n L op ez ’ s di vers i ty a ct i on . In a c on sol i dat ed appe a l , C a s e N o. 10- 16637, M us i nort e c ha l l e nge s the di s tr i c tc ourt ’ s a w a r d of att orney f

ee s und erA ri zona R evi se d S t atut e § 12 -341 . 01 . W e a ff i rm the di stri ct c ourt ’ s j udgm e nti n C a s e N o. 09- 17417. W e va c a t e the di s tr i c tc ourt ’ s a w a r d of f e e s i n C a s e N o. 10- 16637. B e c aus e the pa rt i e s a r e f a m i l i a rw i th the hi s t oryof the ca se , w e nee d n otre coun ti there . I T he di s tr i c tc ourtdi d note rri n r e j e c t i ng M us i nort e ’ s s t a tut e of l i m i t a t i ons d e f e n s e a n d d e c lin in g to ap p lyth e d e f e n s e s o f la c h e s a n d m itig a tio n o f d a m a g e s . U n d e rth e d is c o v e ryru le u s e d in A r iz o n a , “ac au s e o f a c tio n d o e s n o t a c c ru e u n til the pl a i nt i f

f know s orw i th r e a s onabl e di l i ge nc e s houl d know the f a c t s unde r l y i ng the cause. ” D oe v . R oe , 9 5 5 P .2 d 9 5 1 , 9 6 0 (A riz. 1 9 9 8 ). T h e d istrict co u rt’s d e te rm in a tio n th a t L o p e z ’s c au s e o f a c tio n d id n o t a c c ru e u n til h e w a s o f f ic ia lly e x p e lle d f

r o m th e b a n d in 2 0 0 1 w a s n o t c le a r lye rr o n e o u s . See Shul t zv . D e p’ t of A rmy , 886 F . 2d 1157, 1159 ( 9th C i r . 1989) ( “ W he n the que s t i on of a c c rua l of

the s t a tut e of l i m i t a t i ons turns on w ha tar e a s onabl e pe r s on s houl d know , i ti s , l i ke n e g l i g e n c e , ami x e d q u e s t i o n o f f a c ta n d l a w r e v i e w e d f

o rc l e a re rr o r . ” ) ; Fe d . R. C i v . P ro . 5 2 (a)(6 ) (a d i stri ctco u rt ’ s fi n d i n g o f fact“ m u stn o tb e setasi d e u n l ess c le a r lye rr o n e o u s ” ) .- 4-

B e c au s e th e c au s e o f

a c tio n d id n o t a c c ru e u n til 2 0 0 1 , L o p e z ’s d e c is io n to bri ng sui ti n 2 00 3 w as no tun re as on abl e or pre j ud i ci al , and M usi no rt e’ s l ac hes a r g u m e n t f

a ils . See M

athi eu v. M

ah on ey , 8 5 1 P .2 d 8 1 , 8 4 ( A r iz . 1 9 9 3 ) . L ope z “ ha d no dutyt o m i t i ga t e unt i l [ he ] a c tua l l ydi s c ove r e d the da m a ge done t o [ hi m ] ” i n 2001 . H om e I ndem . C o. v. L an e P ow el l Moss & Mi l ler , 43 F . 3d 13 22 , 13 29 (9th C i r. 19 95 ). T he r e f or e , the di s tr i c tc ourtdi d note rri n r e j e c t i ng M u s in o rte ’s f

a ilu r e to m itig a te d e f

e n s e . I I C o n tr a ryto M u s in o rte ’s c o n te n tio n , th e r e c o r d p r o v id e s “e v id e n c e a d e q u a te t o sup po rtthe j ury’ s c on cl usi on ” of l i abi l i ty und erthe un j ustenri chm enttheory a nd the a m ountof

da m a ge s a w a r de d. E . E . O . C . v . G o D addySof tw ar e, I nc . , 581 F . 3d 951, 963 ( 9th C i r . 2009) ( i nt e rna l quot a t i on m a rks a nd c i t a t i on om i tt e d) . T he ju ry w a s p r o p e r lyin s tru c te d o n th e e le m e n ts , an d L o p e z p r e s e n te d e v id e n c e a s to e a c h r e qui r e d e l e m e nt . H e t e nde r e d e vi de nc e of the M us i nort e ’ s e nr i c hm e ntf r om pr of i t s , hi s i m pove r i s hm e ntf r om onl ybe i ng pa i d as a l a ryi ns t e a d of tw e ntype r c e nt of the r oy a l t i e s , hi s s t a tus , a nd the l a c k of j us t i f i c a t i on f orthe i m pove r i s hm e nta nd e n r ic h m e n t b e c au s e th e r e w a s n o c o n tr a c tu a l o ra n yo th e rle g a l b a s is f o rth e G a r c ia b r o th e r s to d is tr ib u te a ll th e r o y a ltie s to th e m s e lv e s .- 5-

T h e d is tr ic t c o u rt d id n o t e rrin c o n c lu d in g th a t th e r e w a s n o a d e q u a te r e m e dya tl a w . U nde rA r i z onal a w , apl a i nt i f f c a n pur s ue a n unj us te nr i c hm e nt cl ai m as an al t ernat i ve theory of r ec ov ery i n con j un ct i on w i th a breac h o f c on tra ct c la im , s u b

je c t, h o w e v e r , to o n lyo n e r e c o v e ry . T r us tm ark I ns . C o. v . B ank

O ne , 48 P .3 d 4 8 5 , 4 9 2 -9 3 (A riz. C t. A p p . 2 0 0 2 ). B ec au se th e ju ry re jected L o p ez ’s p artn ersh i p an dco n tractcl ai m s, an d w as i n stru ct ed t o ad d ress o n l y th e u n j u st e n r ic h m e n t c la im if

it r e je c te d th e f

ir s t c la im s , th e r e w a s n o d o u b le r e c o v e ry . Id . W e c onc l ude the r e w a s no r e ve r s i bl e e rr ori n the j ury ’ s f i ndi ng a s t o j oi nt a n d s e v e r a l liab ility . B e c au s e M u s in o rte f a ile d in th e R u le 5 0 ( a ) m o tio n to s u f f ic ie n tlya rtic u la te th e jo in t a n d s e v e r a l liab ilityis s u e , s e e W al lac e v . C i t

yof San D i ego , 4 7 9 F .3 d 6 1 6 , 6 2 0 ( 9 th C ir . 2 0 0 7 ) , w e r e v ie w o n lyf o rp la in e rr o r , s e e Go D addySof

tw ar e, I nc . , 58 1 F . 3d at96 1. M usi no rt e c anno tm ee tthi s “ extra ordi nary d eferen t i al ” st an d ard b ecau se th ey h av e n o tal l eg ed , an d can n o tsh o w , a “ m an i fest m i sc arri age of j ust i ce . ” Id . a t961- 62 ( i nt e rna l quot a t i on m a rks a nd c i t a t i ons om i tt ed). A pp l yi ng the approp ri at e s t andard of revi ew , w e c on cl ud e thatthere w as s u f f ic ie n t e v id e n c e in th e r e c o r d to s u p p o rt th e v e r d ic t. T he di stri ctcourtdi d n oterr i n o rder i ng an equi t abl e a cc ou nt i ng despi t e the ju ry ’s r e je c tio n o f

L o p e z ’s p a rtn e r s h ip th e o ry . U n d e rA r iz o n ala w , “[ i]t is n o t . . . e s s e nt i a l t o the r i ghtt o a n a c c ount i ng tha tal e ga l pa rtne r s hi p e xi s t . I f the pe r s ons- 6-

s to o d in am u tu a l a n d c o n f id e n tia l r e la tio n to e a c h o th e r , a n d h a d ajo in t in te r e s t in the re sul tof an adventure, ei ther m aydem and an accounti ng . . . . ” Mol loh an v. Ch r is ty , 294 P . 2d 375, 376- 77 ( A r i z . 1956) ( i nt e rna l quot a t i on m a rks a nd c i t a t i on om i tt e d) . B e c aus e the j uryf ound tha tL ope z w a s e nt i t l e d t o tw e ntype r c e ntof the b a n d ’s p r o f

it a n d “f u tu r e r o y a ltie s p a id f

o rr e c o r d in g s o n w h ic h L o p e z p e r f o rm e d ,” the di s tr i c tc ourtdi d notabus e i t s di s c r e t i on i n de t e rm i ni ng tha tam utua l a nd c onf i de nt i a l r e l a t i ons hi p e xi s t e d a nd or de r i ng a n e qui t abl e a c c ount i ng. II I I n C a s e N o . 1 0 - 1 6 6 3 7 , M u s in o rte a r g u e s th a t th e d is tr ic t c o u rt e rr e d in a w a r d in g a tto rn e yf

e e s u n d e rA r iz o n aR e v is e d S ta tu te § 1 2 - 3 4 1 .0 1 ( A ) . W e a g r e e . A r iz o n aR e v is e d S ta tu te § 1 2 - 3 4 1 .0 1 ( A ) p e rm its ac o u rt to a w a r d a tto rn e yf e e s in

“ any c on t es t ed ac t i on ar i si ng ou tof a c on tra ct , expres s or i m pl i ed. ” L op ez al l eges h is c la im a r o s e u n d e rth e c o n tr a c ts b e tw e e n th e r e c o r d in g c o m p a n ie s a n d th e b a n d . A l though L ope z w a s apa rtyt o s om e of the s e r e c or di ng c ontr a c t s , the ya r e notthe c o n tr a c ts u n d e rw h ic h L o p e z ’s s u it a r o s e . I n s te a d , M u s in o rte ’s du tyto d is tr ib u te p r o f its to L o p e z e x is te d w ith o u t s u c h ac o n tr a c t. Se e, e . g. , Mo rr is v . A c h e n C o n s t. Co . , 747 P . 2d 1211, 1213 ( A r i z . 1987) ( r e j e c t i ng c l a i m f

orf e e s unde r§ 12- 341. 01( A ) ba s e d on f

r audul e nti nduc e m e ntc aus e of a c t i on be c aus e “ [ t ] he dutynot to c o m m it f

r au d is o b v io u s lyn o t c r e a te d b yac o n tr a c tu a l r e la tio n s h ip a n d e x is ts . .- 7-

. e v e n w h e n th e r e is n o c o n tr a c tu a l r e la tio n s h ip b e tw e e n th e p artie s a t a ll” ) . M us i nort e ’ s dutyt o a voi d unj us te nr i c hm e nti s m or e c l os e l ya ki n t o a n i m pl i e d- i nl a w c ontr a c t , w hi c h the A r i z onaS upr e m e C ourtha s e xpr e s s l yrul e d doe s not q u a lif y u n d e r§ 1 2 - 3 4 1 .0 1 ( A ) . See B arm atv. John an d Jan e D oe P artners A -D , 747 P . 2d 1218, 1220- 22 ( 1987) ( f i ndi ng tha ti m pl i e d- i n- l a w c ontr a c t s a r i s i ng f r om pr of e s s i ona l r e l a t i ons hi ps a r e i ns uf f i c i e ntunde r§ 12- 341. 01( A ) ) . B e c aus e the di stri ctcourterre d i n aw ar di ng fe es un der § 12 -341 . 01 (A ), w e vac at e the aw ar d an d rem an d t o th e d i stri ctco u rtfo r fu rth er p ro ceed i n g s.

AF F I RME D I N P AR T , V AC AT E D I N P AR T , AN D R E MAND E D. E ach p arty sh al l b ear i t s o w n co st s.