Maguire v. Coltrell et al
Filing
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ORDER denying 63 Motion for Entry of Judgment under Rule 54(b) and granting 64 Motion for Attorneys' Fees. Defendant Carmichael is awarded attorneys' fees and costs of $18,639.88. Signed by Judge David G Campbell on 7/1/15.(SJF)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE DISTRICT OF ARIZONA
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Robert D. Maguire,
No. CV-14-01255-PHX-DGC
Plaintiff,
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v.
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ORDER
Cathleen A. Coltrell, et al.,
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Defendants.
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Defendant John Carmichael has filed a motion for final judgment and a motion for
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attorneys’ fees. Docs. 63, 64. The motions are fully briefed, and neither party has
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requested oral argument. The Court will deny the motion for final judgment and grant
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the motion for attorneys’ fees.
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I.
Background.
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In May 2014, Plaintiff Robert Maguire brought suit against Defendants John
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Carmichael and Kathleen Coltrell, husband and wife, for breach of an alleged oral
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partnership agreement formed between Maguire and Coltrell during their relationship.
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Doc. 1-1. On April 30, 2015, the Court dismissed Carmichael for lack of personal
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jurisdiction, finding that he lacked minimum contacts with Arizona and that he was not
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subject to personal jurisdiction simply due to his marriage to Coltrell. Doc. 60 at 7.
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Plaintiff’s claims against Coltrell for breach of contract, an accounting, breach of
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fiduciary duty, and unjust enrichment remain pending, and a final pretrial conference has
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been set. Doc. 62. Carmichael now moves for entry of a final judgment in his favor and
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for the attorneys’ fees he incurred in defending himself in this action. Docs. 63, 64.
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II.
Motion for Final Judgment.
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Rule 54(b) provides that when more than one claim for relief is presented in an
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action, or when multiple parties are involved, the district court may direct the entry of a
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final judgment as to one or more but fewer than all of the claims or parties “only if the
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court expressly determines that there is no just reason for delay.” Fed. R. Civ. P. 54(b).
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The entry of such judgments “must be reserved for the unusual case in which the costs
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and risks of multiplying the number of proceedings and of overcrowding the appellate
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docket are outbalanced by pressing needs of the litigants for an early and separate
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judgment as to some claims or parties.” Morrison-Knudsen Co., Inc. v. Archer, 655 F.2d
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962, 965 (9th Cir. 1981).
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Carmichael argues that entry of a final judgment is appropriate because he has
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been dismissed from the case and “it does not make sense for [him] to be burdened with
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waiting for an eventual final order, monitoring this case further or incurring the expenses
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to do so, especially since he lives in Colorado and has no contacts with Arizona.”
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Doc. 63 at 2. Carmichael also asserts this will aid the “expeditious decision” of the case.
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The Court finds that this is not the “unusual case” where the pressing needs of a
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litigant outweigh the need to avoid multiple proceedings. See Archer, 655 F.2d at 965;
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see also Sanchez v. Maricopa Cnty., No. CV 07-1244-PHX-JAT, 2008 WL 2774528, at
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*1 (D. Ariz. July 14, 2008) (“The Court finds that this is not the rare case that justifies
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sending up piecemeal appeals to the Circuit Court. Plaintiff has not shown the sort of
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pressing needs contemplated by a grant of a 54(b) motion, and denial of his motion will
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not lead to a harsh or unjust result.”). This case has progressed through the summary
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judgment stage, trial likely will commence in the next few months, and Carmichael does
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not identify any hardship he will suffer as a result. Refraining from entering judgment
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until after trial will ensure that piecemeal appeals are avoided. See Blair v. Shanahan, 38
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F.3d 1514, 1522 (9th Cir. 1994).
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III.
Motion for Attorneys’ Fees.
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“In any contested action arising out of a contract, express or implied, the court
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may award the successful party reasonable attorney fees.” A.R.S. § 12-341.01(A). The
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trial court has discretion regarding an award of attorneys’ fees. See Wilcox v. Waldman,
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744 P.2d 444, 450 (Ariz. Ct. App. 1987). Carmichael seeks $18,639.88 in fees under
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§ 12-341.01(A).
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A.
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Plaintiff argues that fees cannot be awarded under § 12-341.01 because
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(1) Carmichael is not the prevailing party, (2) no contract claims were alleged against
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Carmichael, and (3) Plaintiff did not assert any claims against Carmichael, but instead
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included him only as a procedural technicality. Carmichael asserts that the case involved
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claims arising out of a breach of an oral partnership agreement and that he was the
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prevailing party because he was dismissed from the case. The Court agrees.
Does § 12-341.01 Apply?
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First, Carmichael prevailed for purposes of the Arizona statute because the Court
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dismissed him from the suit for lack of personal jurisdiction. That Carmichael did not
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prevail on the merits of the claims is not controlling. See Britt v. Steffen, 205 P.3d 357,
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359 (Ariz. Ct. App. 2008) (noting that “the defendant is still considered a ‘successful
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party’ for purposes of A.R.S. § 12-341.01(A) even though such a dismissal does not
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operate as an adjudication upon the merits”). The case upon which Plaintiff relies, Harris
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v. Stonecrest Care Auto Center, LLC, 559 F. Supp. 2d 1088, 1090 (S.D. Cal. 2008), is
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inapposite because it involved attorneys’ fees sought under the Americans with
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Disabilities Act (“ADA”). Ninth Circuit case law holds that a defendant cannot be a
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prevailing party under the ADA if the suit is dismissed for jurisdictional reasons. Id.
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Arizona law provides otherwise with respect to § 12-341.01.
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Second, this case arises out of contract. The crux of Plaintiff’s complaint is that
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Coltrell breached an implied-in-fact partnership agreement formed during their
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relationship, which sounds in contract under Arizona law. See Barmat v. John & Jane
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Doe Partners A-D, 747 P.2d 1218, 1222 (Ariz. 1987) (“Where, however, the duty
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breached is not imposed by law, but is a duty created by the contractual relationship, and
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would not exist ‘but for’ the contract, then breach of either express covenants or those
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necessarily implied from them sounds in contract.”).
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existence of the alleged agreement, Carmichael would have been subject to liability even
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though he is not alleged to have actually breached the agreement himself. “But for” the
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underlying partnership agreement, no cause of action would exist. See In re Larry’s
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Apartment, L.L.C., 249 F.3d 832, 837 (9th Cir. 2001).
Had Plaintiff established the
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Third, contrary to Plaintiff’s claim, the complaint directly implicates Carmichael.
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The complaint alleges that Coltrell breached the contract while she was married to
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Carmichael and that the breach was “for the benefit of Coltrell and her marital
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community.” Doc. 1-1, ¶ 5. Plaintiff’s complaint sought to hold Carmichael liable as
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part of the marital community; Plaintiff did not include him merely as a technicality.
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B.
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To determine whether to award attorneys’ fees, courts consider the merits of the
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unsuccessful party’s claim, whether the successful party’s efforts were completely
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superfluous in achieving the ultimate result, whether assessing fees against the
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unsuccessful party would cause extreme hardship, whether the successful party prevailed
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with respect to all relief sought, whether the legal question presented was novel or had
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been previously adjudicated, and whether a fee award would discourage other parties
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with tenable claims from litigating. Am. Const. Corp. v. Philadelphia Indem. Ins. Co.,
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667 F. Supp. 2d 1100, 1106-07 (D. Ariz. 2009) (citing Assoc. Indem. Corp. v. Warner,
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694 P.2d 1181, 1184 (Ariz. 1985)). No single factor is determinative. See Velarde v.
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PACE Membership Warehouse, Inc., 105 F.3d 1313, 1319-20 (9th Cir. 1997).
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Carmichael argues that each factor weighs in favor of an award of attorneys’ fees.
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Plaintiff addresses only the hardship factor. He claims that he has not fully recovered
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financially from losing the approximately $220,000 he paid to Coltrell under the alleged
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partnership agreement. Doc. 65-1, ¶ 4. Plaintiff does not dispute any of the factors, and
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the Court finds they weigh in favor of an award of attorneys’ fees.
Analysis of Factors.
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First, Plaintiff was unsuccessful in demonstrating that the Court could exercise
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personal jurisdiction over Carmichael. Carmichael was a Colorado resident with no
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contacts to Arizona, and the Court rejected each of Plaintiff’s arguments. Second, there
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is no evidence that Carmichael could have avoided the litigation; Plaintiff chose to sue
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him. Third, although Plaintiff claims he will suffer financial hardship, he provides no
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evidence of his current financial situation. The Court is therefore unable to conclude that
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this factor weighs in favor of Plaintiff. Fourth, Carmichael achieved all of the relief
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sought in his motion to dismiss, and the issues involved were straightforward. Fifth, a fee
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award will not deter future litigants from pursuing similar claims, as a reasonable
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investigation should have shown that Carmichael was not subject to jurisdiction in
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Arizona.
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C.
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In analyzing whether attorney’s fees are reasonable, the Court looks to whether the
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hourly rate is reasonable and whether the hours expended on the case are reasonable.
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Schweiger v. China Doll Rest., Inc., 673 P.2d 927, 931-32 (Ariz. Ct. App. 1983). “Once
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a party establishes its entitlement to fees and meets the minimum requirements in its
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application and affidavit for fees, the burden shifts to the party opposing the fee award to
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demonstrate the impropriety or unreasonableness of the requested fees.”
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Starlight Pines Homeowners Ass’n, 167 P.3d 1277, 1286 (Ariz. Ct. App. 2007).
Reasonableness of Fees.
Nolan v.
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Carmichael argues that a fee award of $18,629.88 is reasonable. In support,
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counsel submitted a copy of the fee agreement executed between counsel and Carmichael
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(Doc. 64-2), a task-based itemized statement of fees and expenses (Doc. 64-3), and an
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affidavit prepared by counsel attesting to the work performed in connection with the case
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(Doc. 64-4). The documents show that counsel charged an hourly rate of $320 and
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worked 150 hours on this matter. Doc. 64-2 at 7. Counsel then discounted the fees and
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split them in half between Carmichael and Coltrell. Doc. 64 at 2.
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The Court finds that the fees are reasonable given the hourly rate and time
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expended in the matter. Plaintiff does not challenge the reasonableness of the fees or take
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issue with any of Carmichael’s calculations, and thus has failed to meet his burden under
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Nolan.
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attorneys’ fees and costs in the amount of $18,639.88.
Accordingly, the Court will exercise its discretion and award Carmichael
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IT IS ORDERED that Defendant’s motion for final judgment (Doc. 63) is
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denied, and his motion for attorneys’ fees (Doc. 64) is granted. Defendant Carmichael
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is awarded attorneys’ fees and costs of $18,639.88.
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Dated this 1st day of July, 2015.
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