Bill Text: AZ SB1541 | 2022 | Fifty-fifth Legislature 2nd Regular | Engrossed

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Bill Title: Unjustified action; political action; costs

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-02-21 - Senate majority caucus: Do pass [SB1541 Detail]

Download: Arizona-2022-SB1541-Engrossed.html

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Senate Engrossed

 

unjustified action; political action; costs

 

 

 

 

State of Arizona

Senate

Fifty-fifth Legislature

Second Regular Session

2022

 

 

 

SENATE BILL 1541

 

 

An Act

 

amending section 12-349, Arizona Revised Statutes; relating to the recovery of costs.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 12-349, Arizona Revised Statutes, is amended to read:

START_STATUTE12-349. Unjustified actions; attorney fees, expenses and double damages; exceptions; definitions

A. Except as otherwise provided by and not inconsistent with another statute, in any civil action commenced or appealed in a court of record in this state, the court shall assess reasonable attorney fees, expenses and, at the court's discretion, double damages of not to exceed five thousand dollars $5,000 against an attorney or party, including this state and political subdivisions of this state, if the attorney or party does any of the following:

1. Brings or defends a claim without substantial justification. Speech or conduct that is protected by the constitutions of this state and the United States may not be used to infer that a claim or defense is not made in good faith.

2. Brings or defends a claim solely or primarily for delay or harassment.

3. Unreasonably expands or delays the proceeding.

4. Engages in abuse of discovery.

B. The court may allocate the payment of attorney fees among the offending attorneys and parties, jointly or severally, and may assess separate amounts against an offending attorney or party.

C. Attorney fees shall not be assessed if after filing an action a voluntary dismissal is filed for any claim or defense within a reasonable time after the attorney or party filing the dismissal knew or reasonably should have known that the claim or defense was without substantial justification.

D. In a political action, A motion for attorney fees, expenses or damages that is filed pursuant to this section in the superior court must be heard and determined by a judge who is not deciding the merits of the underlying action.  Each element that is required pursuant to subsection A of this section must be proved by clear and convincing evidence. If the motion is denied, the moving party or the attorney shall pay the fees, expenses and damages incurred by the prevailing party and attorney in defending the motion.  If a motion is granted and appealed, all underlying findings shall be reviewed de novo.

D. E. This section does not apply to the adjudication of civil traffic violations or to any proceedings brought by this state pursuant to title 13.

E. F. Notwithstanding any other law, this state and political subdivisions of this state may be awarded attorney fees pursuant to this section.

F. G. For the purposes of this section: , 

1. "Political action" means a claim or defense that involves ballot access, a political campaign, an election, legislative proceedings or an alleged violation of the constitution of this state or the United States.

2. "Without substantial justification" means that the claim or defense is groundless and is not made in good faith. END_STATUTE

Sec. 2. Legislative Intent

The Legislature finds:

1. Parties have a substantive right to litigate good faith disagreements that concern political and constitutional issues.

2. Threats of fee shifting and sanctions chill meritorious claims, particularly by disadvantaged populations or poorly funded causes, even if fee shifting is unjustified under the law.

3. If decided by a politically motivated judge, a motion for sanctions is acutely prejudicial to the administration of justice and diminishes confidence in the political and legal systems.

4. Procedural safeguards against abusive motions or orders for fee shifting are necessary to ensure equal access to justice and confidence in the integrity of the political and legal systems.

Sec. 3. Severability

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.