Assigned to JUD FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1158
attorney fees; costs; recovery
Purpose
Modifies circumstances in which a court is allowed to award reasonable attorney fees to a
successful party in an action arising out of a contract and an action brought against the State of
Arizona for a violation of the U.S. Constitution, the Arizona Constitution or Arizona law.
Background
Current statute allows the court to award a successful party reasonable attorney fees in any
contested action arising out of a contract, express or implied. Statute specifies that the award of
reasonable attorney fees made in this manner should be made to mitigate the burden of the expense
of litigation to establish a just claim or a just defense, and that it need not equal or relate to attorney
fees actually paid or contracted, but that it may not exceed the amount paid or agreed to be paid
(A.R.S. § 12-341.01).
The court is also required to award fees and other expenses to any party other than this
state or a city, town or county that prevails by an adjudication on the merits in specified
proceedings, including: 1) a civil action brought by this state or a city, town or county against the
party; 2) a court proceeding to review a state agency decision; 3) a civil action brought by the party
to challenge the seizure and sale of personal property by this state or a city, town or county; and
4) a civil action brought by the party to challenge a rule, decision, guideline, enforcement policy
or procedure of a state agency or commission on the grounds that the rule, decision, guideline,
enforcement policy or procedure is not authorized by statute or violates the U.S. Constitution or
the Arizona Constitution (A.R.S. § 12-348).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. States that the court's ability to award reasonable attorney fees to the successful party in a
contested action arising out of a contract, unless the action is groundless or frivolous, does not
apply to either of the following:
a) an action in which a contract or provision in a contract is alleged to violate the U.S.
Constitution, the Arizona Constitution or Arizona law; and
b) an action that seeks only equitable relief against a government entity.
2. Requires the court to award fees and other expenses to any party, other than the state, or a city,
town or county, that prevails by an adjudication on the merits in a civil action brought by the
party for declaratory or injunctive relief against the state or a city, town or county or other
political subdivision for an action that violates the U.S. Constitution, the Arizona Constitution
or Arizona law. FACT SHEET
S.B. 1158
Page 2
3. Makes technical changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 18, 2022
ZD/sr