FREDERICK J. MARTONE, District Judge.
The court has before it defendants' motion for attorneys' fees (doc. 79) and memorandum in support of their motion (doc. 84), plaintiff's response (doc. 86), and defendants' reply (doc. 87).
This action arose out of a settlement agreement signed by plaintiff and defendant GMAC Mortgage LLC to reinstate the mortgage on plaintiff's property after plaintiff's property was sold to GMAC at a trustee's sale. The parties agreed to enter into a loan modification as described in Exhibit A to the agreement. However, the settlement agreement did not contain an Exhibit A.
Plaintiff's first amended complaint asserted claims for (1) actual fraud, (2) constructive fraud, (3) breach of contract, (4) intentional infliction of emotional distress ("IIED"), (5) negligence, (6) deceptive practices, and (7) unjust enrichment. We granted defendants' motion to dismiss claims one, two, four, five, and six (doc. 44). Summary judgment was granted to defendants on the remaining claims (doc. 76). The parties stipulated to the dismissal of defendants' counterclaim for abuse of process without prejudice (doc. 67). Defendants now seek an award of attorneys' fees under A.R.S. § 12-341.01 in the total amount of $84,346.00, representing over 400 hours of work. This includes a request for $72,552.50 in fees expended defending this action, as well as $11,793.50 spent responding to the parallel proceedings plaintiff initiated with the Arizona Attorney General's Office and the Consumer Financial Protection Bureau.
Under A.R.S. § 12-341.01(A), a court may award reasonable attorney fees to the prevailing party in any action "arising out of a contract."
The first
We turn to the remaining factors. It is unclear whether the parties could have settled. The parties engaged in some settlement negotiations. Plaintiff's ultimate goal was to secure a loan modification. Plaintiff initially proposed a settlement that was rejected as unreasonable, and defendants did not complete plaintiff's new loan modification application prior to the end of this action. Defendants fault plaintiff for being unwilling to discuss settlement sooner and plaintiff faults defendants for not timely processing his application. As a result, this factor is neutral. Next, plaintiff has not argued that the assessment of fees would result in extreme hardship.
Plaintiff asks that we exclude fees relating to defendants' counterclaim. We need only consider the relative merit of the unsuccessful party's claims when deciding whether any award of fees is appropriate.
We decline, however, to award any fees incurred in litigating the extraneous complaints plaintiff filed with the Arizona Attorney General's Office and the Consumer Financial Protection Bureau. Defendants argue that plaintiff's conduct in instituting parallel proceedings vexatiously multiplied proceedings, warranting a sanction in this court. We decline to sanction plaintiff for initiating proceedings in other forums which had no impact on these proceedings. Accordingly, we will not award the $11,793.50 incurred in connection with these other proceedings.
Plaintiff does not otherwise object to the reasonableness of the fees. Accordingly,