commercial landlord tenant;
attorney fees
HB 2264 allows the court to assess damages, attorneys' fees and court costs in an action to determine rightful possession in a commercial landlord-tenant dispute.
Current Status
HB 2264 was amended in the Commerce and Economic Development Committee with an amendment that cross-references another section of Statute to conform the language.
Current law stipulates that when a commercial tenant fails to timely pay rent or violates any provision of the lease, then the landlord may take possession of the property or begin court proceedings to recover the premises. Reimbursement of certain costs related to such an eviction proceeding are not specifically outlined in statute, such as payment of court costs and attorneys' fees. The Residential Landlord and Tenant Act and the Mobile Home Landlord and Tenant Act currently allows the court to assess such costs to the prevailing party in an eviction proceeding.
A recent Arizona Court of Appeals case involving Camelback Plaza Development, L.C. v Hard Rock Café International, Inc. (Phoenix) held, "As a general rule, when the legislature means to authorize the recovery of attorneys' fees, it expressly states that intention." Although the lease agreement specifically provided for the court to allow for the recovery of court costs and other charges, including attorneys' fees, the court's opinion as stated above denied the recovery.
HB 2264 authorizes the court, in addition to determining rightful possession in a commercial landlord-tenant proceeding, to assess any damages, court costs and attorneys' fees.