American Power Products, Inc. v. CSK Auto, Inc.Annotate this Case
The Arizona Supreme Court reversed the trial court’s award of attorney fees to Plaintiff and its ruling that Plaintiff was the “prevailing party” in the proceedings below. Before trial, Defendant made a settlement offer of $1,000,001. Plaintiff rejected the offer and, later, obtained a jury verdict in the amount of $10,733. Because a fee award provision in a contract between the parties did not itself define “prevailing party” but did incorporate Arizona law to determine the parties’ rights and remedies, Ariz. Rev. Stat. 12-341.01(A) applied for the purpose of determining the successful party. Because the final judgment was more favorable to Defendant than its pretrial offer, Plaintiff was not entitled to recover any fees incurred after the offer under section 12-341.01(A). The court remanded to the trial court to apportion fees and costs between the parties.